IB
Union Calendar No. 304
103D CONGRESS
2D SESSION
H. R. 3937
[Report No. 103–531, Parts I, II, III, and IV]
Entitled the ‘‘Export Administration Act of 1994’’.
IN THE HOUSE OF REPRESENTATIVES
MARCH 2, 1994
Mr. GEJDENSON (by request) introduced the following bill; which was referred
to the Committee on Foreign Affairs
MAY 25, 1994
Reported with amendments, and referred to the Committees on Armed Serv-
ices, Judiciary, Public Works and Transportation, Ways and Means, and
the Permanent Select Committee on Intelligence for a period ending not
later than June 17, 1994, for consideration of such provisions contained
in the bill and amendment as fall within the respective jurisdictions of
those committees pursuant to rule X.
[Strike out all after the enacting clause and insert the part printed in italic]
JUNE 16, 1994
Reported from the Permanent Select Committee on Intelligence with
amendments
[Omit the part struck through in italic and insert the part printed in boldface italic]
JUNE 17, 1994
Reported from the Committee on Ways and Means with amendments
[Omit the part in bold parentheses and insert the part printed in boldface roman in bold
parentheses]
JUNE 17, 1994
Reported from the Committee on Armed Services with amendments
[Omit the part in italic black brackets and insert the part printed in boldface roman]
JUNE 17, 1994
Committees on the Judiciary and Public Works and Transportation dis-
charged; committed to the Committee of the Whole House on the State
of the Union, and ordered to be printed
[For text of introduced bill, see copy of bill as introduced on March 2, 1994]
A BILL
Entitled the ‘‘Export Administration Act of 1994’’.
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 ‘‘Omnibus Export Admin-
istration Act of 1994’’.
SEC. 2. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I—EXPORT ADMINISTRATION
Sec. 101. Short title.
Sec. 102. Findings.
Sec. 103. Policy statement.
Sec. 104. General provisions.
Sec. 105. Multilateral controls.
Sec. 106. Emergency controls.
Sec. 107. Short supply controls.
Sec. 108. Foreign boycotts.
Sec. 109. Procedures for processing export license applications; other inquiries.
Sec. 110. Violations.
Sec. 111. Controlling proliferation activity.
Sec. 112. Administrative and judicial review.
Sec. 113. Enforcement.
Sec. 114. Export control authorities and procedures.
Sec. 115. Annual report.
Sec. 116. Definitions.
Sec. 117. Effects on other Acts.
Sec. 118. Conforming amendments to other laws.
Sec. 119. Effective date.
Sec. 120. Expiration date.
Sec. 121. Savings provision.
TITLE II—NUCLEAR PROLIFERATION PREVENTION ACT
Sec. 201. Short title.
PART A—REPORTING ON NUCLEAR EXPORTS
Sec. 211. Reports to Congress.
Sec. 212. Effective date.
PART B—SANCTIONS FOR NUCLEAR PROLIFERATION
Sec. 221. Imposition of sanctions on persons engaging in export activities that
contribute to proliferation.
Sec. 222. Eligibility for assistance.
Sec. 223. Role of international financial institutions.
Sec. 224. Prohibition on assisting nuclear proliferation through the provision of
financing.
Sec. 225. Export-Import Bank.
Sec. 226. Sanctions against countries involved in transfer of nuclear weapons or
design information or components.
Sec. 227. Amendment to the Arms Export Control Act.
Sec. 228. Reward.
Sec. 229. Reports.
Sec. 230. Technical correction.
Sec. 231. Definitions.
Sec. 232. Effective date.
PART C—INTERNATIONAL ATOMIC ENERGY AGENCY
Sec. 241. Bilateral and multilateral initiatives.
Sec. 242. IAEA internal reforms.
Sec. 243. Reporting requirement.
Sec. 244. Definitions.
PART D—REPEAL OF DUPLICATIVE PROVISIONS
Sec. 251. Repeal.
TITLE I—EXPORT
ADMINISTRATION
SEC. 101. SHORT TITLE.
This title may be cited as the ‘‘Export Act of 1994’’.
SEC. 102. FINDINGS.
The Congress makes the following findings:
(1) Export controls are a part of a comprehen-
sive response to national security threats. United
States exports should be restricted only for critical
national security, nonproliferation, and foreign policy
reasons.
(2) Exports of certain commodities and tech-
nology may adversely affect the national security of
the United States by making a direct and significant
contribution to the military potential of individual
countries or by disseminating the capability to
produce or use weapons of mass destruction. There-
fore, the administration of export controls should em-
phasize the control of these exports.
(3) The acquisition of dual use commodities and
technology by those countries and end users whose ac-
tions or policies run counter to United States na-
tional security interests may enhance the military ca-
pabilities of those countries, particularly their ability
to produce and deliver nuclear, chemical, and biologi-
cal weapons. This enhancement threatens the security
of the United States and its allies, and places addi-
tional demands on the defense budget of the United
States. Availability to certain countries and end users
of items that contribute to certain military capabili-
ties or the proliferation of weapons of mass destruc-
tion is a fundamental concern of the United States
and should be eliminated through negotiations and
other appropriate means whenever possible.
(4) Exporting is critical to the economic health
of the United States and, therefore, to its national se-
curity as well. With the growing importance of ex-
ports to sustained United States economic growth and
vitality, restrictions on exports must be evaluated in
terms of their effects on the United States economy as
well as on its national security. Restrictions on ex-
ports from the United States have had serious adverse
effects on economic competitiveness and domestic em-
ployment, particularly when restraints applied by the
United States have been more extensive than those
imposed by other countries or when United States ex-
port control policy is uncertain.
(5) Export controls cannot be the sole instrument
of the United States to prevent a country or end user
from developing weapons of mass destruction. For this
reason, export controls should be applied as part of a
comprehensive response to security threats.
(6) The national security of the United States
depends not only on wise foreign policies and a
strong defense, but also a vibrant national economy.
To be truly effective, export controls should be applied
uniformly by all suppliers.
(7) Effective export controls also must be focused
only on those items that materially contribute to a
country’s or an end user’s military potential or po-
tential to produce or use weapons of mass destruction.
(8) Unilateral export controls are generally not
effective in influencing the behavior of other govern-
ments or impeding access to controlled countries of
controlled items. In most situations, unilateral con-
trols alone impede access to United States sources of
supply without affecting the ability of controlled
countries to obtain controlled items elsewhere. More-
over, unilateral controls permit foreign competitors to
serve markets the United States Government denies to
United States firms and workers, thus impairing the
reliability of United States suppliers in comparison
with their foreign competitors. At the same time, the
need to lead the international community or over-
riding national security or foreign policy interests
may justify unilateral controls in specific cases.
(9) The United States recognizes the importance
of comprehensive enforcement measures to maximize
the effectiveness of multilateral controls.
(10) The United States’ export control system
must not be overly restrictive or bureaucratic, or un-
dermine the competitive position of American indus-
try. The export control system must be efficient, re-
sponsive, transparent, and effective.
(11) Export restrictions that negatively affect the
United States industrial base ultimately weaken
United States military capabilities and lead to de-
pendencies on foreign sources for key components.
(12) Minimization of restrictions on exports of
agricultural commodities and products is of critical
importance to the maintenance of a sound agricul-
tural sector, to a positive contribution to the balance
of payments, to reducing the level of Federal expendi-
tures for agricultural support programs, and to Unit-
ed States cooperation in efforts to eliminate malnutri-
tion and world hunger.
SEC. 103. POLICY STATEMENT.
It is the policy of the United States to do the following:
(1) To stem the proliferation of weapons of mass
destruction and the means to deliver them by—
(A) leading international efforts to control
the proliferation of chemical, biological, and nu-
clear weapons and missiles;
(B) controlling involvement of United
States persons in, and contributions by United
States persons to, foreign programs intended to
develop weapons of mass destruction or missiles
and the means to design, develop, produce, stock-
pile, or use them; and
(C) implementing international treaties or
other agreements that require controls on exports
of designated items, reports on the production,
processing, consumption, and exports of such
items, and compliance with verification pro-
grams.
(2) To restrict the export of items that would di-
rectly and significantly contribute to the military po-
tential of countries so as to ƒpose a threat to the na-
tional security≈ prove detrimental to the na-
tional security of the United States or its allies.
(3) To—
(A) minimize uncertainties in export con-
trol policy; and
(B) encourage trade with all countries with
which the United States has diplomatic or trad-
ing relations, except those countries with which
such trade has been determined by the President
to be against the national interest, and to strong-
ly encourage the trading partners of the United
States not to trade with those other countries.
(4) To restrict export trade when necessary to
protect the domestic economy from the excessive drain
of scarce materials and to reduce the serious infla-
tionary impact of foreign demand.
(5) To increase the effectiveness of and the reli-
ance of the United States upon multilateral coordina-
tion of controls through effective export control re-
gimes that—
(A) clearly identify countries and entities to
which, and end uses for which, exports of items
are to be controlled,
(B) incorporate lists of controlled items that
are critical to the control objectives,
(C) establish uniform criteria and proce-
dures for licensing, and
(D) implement means to curtail member
countries from granting licenses that render inef-
fective license denials by the United States.
(6) To impose unilateral controls, under the pro-
cedures and conditions set forth in section 106, only
when it is ƒessential to≈ necessary to further
significantly the national security or foreign pol-
icy of the United States, and only after full consider-
ation of the economic impact of the controls and their
effectiveness in achieving their intended objectives.
(7) To make all licensing determinations in a
timely manner so undue delays in the licensing proc-
ess will not cause a United States firm to lose an ex-
port sale.
(8) To maintain a presumption of approval of
license applications for authority to export items for
civil end use.
(9) To use export controls to encourage other
countries to take immediate steps to prevent the use
of their territories or resources to aid, encourage, or
give sanctuary to those persons involved in directing,
supporting, or participating in acts of international
terrorism.
(10)(A) To counteract restrictive trade practices
or boycotts fostered or imposed by foreign countries
against other countries friendly to the United States
or against any United States person.
(B) To encourage and, in specified cases, require
United States persons engaged in the export of com-
modities, technology, and other information to refuse
to take actions, including furnishing information or
entering into or implementing agreements, which
have the effect of furthering or supporting the restric-
tive 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.
(11) To consolidate export control functions and
increase administrative accountability, and thereby
better serve the exporting public by reducing and
eliminating overlapping, conflicting, and inconsistent
regulatory burdens.
(12) To minimize restrictions on the export of
agricultural commodities and products.
SEC. 104. GENERAL PROVISIONS.
(a) TYPES OF LICENSES.—Under such conditions as
the Secretary may impose, consistent with the provisions
of this title, and subject to paragraph (2)(B), the Secretary
may require the following types of licenses for exports of
commodities and technology controlled under this title:
(1) SPECIFIC
EXPORTS
AND
REEXPORTS.—An
individual validated license, authorizing a specific ex-
port.
(2) MULTIPLE EXPORTS AND REEXPORTS.—(A)
Validated licenses authorizing multiple exports, in
lieu of an individual validated license for each such
export.
(B)(i) A distribution license, authorizing mul-
tiple exports of general application computers to any
country other than a sanctioned country. The Sec-
retary shall grant such distribution licenses strictly
on the basis of the reliability of the applicant and for-
eign consignees with respect to the prevention of di-
version of commodities or technology, consistent with
section 105(a)(1). Not later than 30 days after an ap-
plication is submitted under section 109 for such a
distribution license to export general application com-
puters, the Secretary shall grant the license with re-
spect to such distributors and end users that the Sec-
retary determines to be reliable. The Secretary may
deny the license application with respect to those dis-
tributors and end users that present a risk of diver-
sion of commodities or technology, directly or indi-
rectly, consistent with the provisions of section
105(a)(1).
(ii) For purposes of this subparagraph, a ‘‘sanc-
tioned country’’ is any country—
(I) the government of which the Secretary of
State has determined to be a government that
has repeatedly provided support for acts of inter-
national terrorism; or
(II) against which the United States main-
tains an embargo on all, or substantially all, ex-
ports pursuant to the International Emergency
Economic Powers Act or the Trading With The
Enemy Act.
(iii) For purposes of this subparagraph, the term
‘‘general application computers’’ means any computer
system, computer networking equipment, peripheral
to a computer system, or combination thereof, on
which export controls are in effect under section 105,
except the following:
(I) Supercomputers.
(II) Computers specially designed for use in
connection with the capability described in sub-
paragraph (A) or (B) of section 105(a)(1).
(III) Computers specially designed for use
in connection with the surreptitious interception
of wire or oral communications.
(b) GENERAL PROHIBITION.—Notwithstanding any
other provision of this title, no person may export any item
which such person knows will materially contribute to a
program or activity for the design, development, or manu-
facture of a weapon of mass destruction or missile in a
country that is not a member of, or a cooperating country
with respect to, an export control regime controlling such
weapon or missile.
(c) UNITED STATES COMMODITY CONTROL INDEX.—
(1) IN GENERAL.—The Secretary shall—
(A) establish and maintain a United States
Commodity Control Index which shall identify
all commodities and technology on which con-
trols are imposed under this title;
(B) specify the license requirements applica-
ble to the items on the control index; and
(C) designate countries, and end uses or end
users, to which exports of commodities and tech-
nology are controlled.
(2) CONTENTS.—The control index shall—
(A) consist of a security control list of all
commodities and technology on which export
controls are imposed under section 105, an emer-
gency control list of all commodities and tech-
nology on which export controls are imposed
under section 106, and a short supply control
list of all commodities on which export controls
are imposed under section 107;
(B) for each item on the control index,
specify with particularity the performance
(where applicable) and other identifying charac-
teristics of the item and provide a rationale for
why the item is on the control list;
(C) identify countries, and end uses or end
users, to which exports are controlled, including
specific projects and end users of concern, cross-
referenced with the list of commodities and tech-
nology on which export controls are imposed;
and
(D) be sufficiently specific and clear as to
guide exporters and licensing officers in deter-
minations of licensing requirements under this
title.
(3) LICENSING OF CONTROL INDEX COMMODITIES
AND TECHNOLOGY.—A validated license may be re-
quired for the export of those commodities and tech-
nology that are specifically and clearly identified on
the control index to countries, end uses, and end users
so designated on the control index. No authority or
permission may be required to export commodities
and technology not so identified to any country, end
use, or end user not so designated.
(d) DELEGATION OF AUTHORITY.—Subject to the pro-
visions of this title, the President may delegate the power,
authority, and discretion conferred upon the President by
this title to such departments, agencies, and officials of the
Government as the President considers appropriate, except
that no authority under this title may be delegated to, or
exercised by, any official of any department or agency the
head of which is not appointed by the President, by and
with the advice and consent of the Senate. The President
may not delegate or transfer his power, authority, or discre-
tion to overrule or modify any recommendation or decision
made by the Secretary, the Secretary of Defense, or the Sec-
retary of State under this title and may not delegate the
authority under section 106(a)(4).
(e) NOTIFICATION
OF
THE PUBLIC; CONSULTATION
WITH BUSINESS.—The Secretary shall keep the public fully
apprised of changes in export control policy and procedures
instituted in conformity with this title with a view to en-
couraging trade. The Secretary shall consult regularly with
representatives of a broad spectrum of enterprises, labor or-
ganizations, and citizens interested in or affected by export
controls, in order to obtain their views on United States
export control policy and the foreign availability of items
subject to controls.
(f) EXPORT ADVISORY COMMITTEES.—
(1) APPOINTMENT.—Upon his or her own initia-
tive or upon the written request of representatives of
a substantial segment of any industry which produces
any items subject to export controls under this title or
being considered for such controls, the Secretary shall
appoint export advisory committees with respect to
any such items. Each such committee shall consist of
representatives of United States industry and Govern-
ment, including the Department of Commerce and
other appropriate departments and agencies of the
Government. The Secretary shall permit the widest
possible participation by the business community on
the export advisory committees.
(2) FUNCTIONS.—Export advisory committees
appointed under paragraph (1) shall advise and as-
sist the Secretary, and any other department, agency,
or official of the Government carrying out functions
under this title, on actions (including all aspects of
controls imposed or proposed) designed to carry out
the policies of this title concerning the items with re-
spect to which such export advisory committees were
appointed. Such committees, where they have exper-
tise in such matters, shall be consulted on questions
involving—
(A) technical matters,
(B) worldwide availability and actual utili-
zation of production technology,
(C) licensing procedures which affect the
level of export controls applicable to any items,
(D) revisions of the security control list (as
provided in section 105(j)), including proposed
revisions of multilateral controls in which the
United States participates,
(E) the issuance of regulations,
(F) the impact and interpretation of exist-
ing regulations,
(G) processes and procedures for review of
licenses and policy,
(H) any other questions relating to actions
designed to carry out this title, and
(I) the operation and conduct of inter-
national business transactions.
Nothing in this subsection shall prevent the United
States Government from consulting, at any time, with
any person representing an industry or the general
public, regardless of whether such person is a member
of an export advisory committee. Members of the pub-
lic shall be given a reasonable opportunity, pursuant
to regulations prescribed by the Secretary, to present
evidence to such committees.
(3) REIMBURSEMENT OF EXPENSES.—Upon the
request of any member of any export advisory com-
mittee appointed under paragraph (1), the Secretary
may, if the Secretary determines it to be appropriate,
reimburse such member for travel, subsistence, and
other necessary expenses incurred by such member in
connection with the duties of such member.
(4) CHAIRPERSON.—Each export advisory com-
mittee appointed under paragraph (1) shall elect a
chairperson, and shall meet at least every 3 months
at the call of the chairperson, unless the chairperson
determines, in consultation with the other members of
the committee, that such a meeting is not necessary
to achieve the purposes of this subsection. Each such
committee shall be terminated after a period of 2
years, unless extended by the Secretary for additional
periods of 2 years each. The Secretary shall consult
each such committee on such termination or extension
of that committee.
(5) ACCESS TO INFORMATION.—To facilitate the
work of the export advisory committees appointed
under paragraph (1), the Secretary, in conjunction
with other departments and agencies participating in
the administration of this title, shall disclose to each
such committee adequate information, consistent with
national security, pertaining to the reasons for the ex-
port controls which are in effect or contemplated for
the items or policies for which that committee fur-
nishes advice.
(6) POLICY
ADVICE.—The Secretary shall ap-
point a group of knowledgeable individuals from busi-
nesses affected by export controls to provide advice to
the Secretary on export control policy issues. The
chairperson of such group shall represent export advi-
sory committees regarding review of control lists
maintained by export control regimes and United
States proposals to export control regimes.
(g) DEVELOPMENT AND REVIEW OF THE CONTROL
LIST.—The Secretary of State, in consultation with appro-
priate departments and agencies, shall be responsible for
conducting negotiations with other countries regarding
multilateral arrangements for restricting the export of items
to carry out the policies of this title. All appropriate depart-
ments and agencies shall consult among themselves and
with the appropriate export advisory committees appointed
under subsection (f) to develop initial technical parameters
and product definitions in connection with the development
of proposals within the United States Government to be
made to multilateral regimes.
(h) RIGHT OF EXPORT.—No authority or permission
to export may be required under this title, or under regula-
tions issued under this title, except to carry out the policies
set forth in section 103.
(i) INTERNATIONAL
OBLIGATIONS
UNDER
TREA-
TIES.—Notwithstanding any other provision of this title
containing limitations on authority to control exports, the
Secretary, in consultation with the Secretary of State, may
impose controls on exports to a particular country or coun-
tries in order to fulfill obligations of the United States
under resolutions of the United Nations and under treaties
to which the United States is a party.
(j) FEES.—No fee may be charged in connection with
the submission or processing of an export license applica-
tion under this title.
SEC. 105. MULTILATERAL CONTROLS.
(a) AUTHORITY.—
(1) IN GENERAL.—In order to carry out the poli-
cies set forth in paragraphs (1), (2), and (5) of sec-
tion 103, the President may, in accordance with this
section, prohibit or curtail the export of any commod-
ities or technology subject to the jurisdiction of the
United States, or exported by any person subject to
the jurisdiction of the United States, if such commod-
ities or technology—
(A) would directly and significantly enable
a country or end user to acquire the capability
to develop, produce, stockpile, use, or deliver
weapons of mass destruction; or
(B) would directly and significantly con-
tribute to the military capability of a country so
as to ƒpose a threat to the national security≈
prove detrimental to the national se-
curity of the United States or its allies.
(2) EXERCISE
OF
AUTHORITY.—The authority
granted by this subsection shall be implemented by
means of export licenses required by the Secretary.
(3) CONSISTENCY WITH EXPORT CONTROL RE-
GIMES.—Any provision of this title that provides that
no authority or permission to export may be required
under this section shall not apply to the extent that
the applicable export control regime provides other-
wise.
(b) SECURITY CONTROL LIST.—
(1) IN GENERAL.—(A) The Secretary shall, in
consultation with appropriate departments and agen-
cies, establish and maintain, as part of the control
index, a security control list, comprised of all com-
modities and technology on which export controls are
in effect under this section, and the countries, and
end uses or end users, to which the controls apply.
The security control list shall clearly identify the spe-
cific commodities and technology the export of which
is controlled, and each country, and end use or end
user, to which such exports are controlled.
(B) If a determination is made, with respect to
the inclusion of items on the security control list, that
affects the items controlled by an export control re-
gime, the Secretary of State shall propose to that re-
gime any revisions that would be necessary as a re-
sult of the determination. Such determination shall
become effective only to the extent such revisions are
agreed to by the export control regime.
(2) PROCEDURE
FOR
INCLUDING
ITEMS
ON THE SECURITY CONTROL LIST.—The Sec-
retaries of Defense and Energy and the
heads of other appropriate departments
and agencies shall identify commodities
and technology for inclusion on the secu-
rity control list. Those items which the
Secretary and the Secretary of Defense
concur shall be subject to export controls
under this section shall comprise the se-
curity control list. If the Secretary and
the Secretary of Defense are unable to
concur on such items, as determined by
the Secretary, the Secretary of Defense
may, within 20 days after receiving notifi-
cation of the Secretary’s determination,
refer the matter to the President for reso-
lution. The Secretary of Defense shall no-
tify the Secretary of any such referral.
The President shall, not later than 20
days after such referral, notify the Sec-
retary of his determination with respect
to the inclusion of such items on the se-
curity control list. Failure of the Sec-
retary of Defense to notify the President
or the Secretary, or failure of the Presi-
dent to notify the Secretary, in accord-
ance 
with 
this 
paragraph, 
shall 
be
deemed by the Secretary to constitute
concurrence in the implementation of the
actions proposed by the Secretary re-
garding the inclusion of such items on
the security control list.
ƒ(2)≈ (3) CONTROLLED
COMMODITIES
AND
TECHNOLOGY.—Export controls shall be imposed
under this section if, and may be imposed under this
section only if, the export controls are agreed to by an
export control regime ƒwhich includes export control
purposes, items subject to control, policy of review for
license applications, and all controlled destinations,
and end uses or end users≈.
ƒ(3)≈ (4) CONTROLLED COUNTRIES, END USES,
AND END USERS.—A country shall be designated a
controlled country, and an end use or end user shall
be designated a controlled end use or controlled end
user, with respect to a particular commodity or tech-
nology on the security control list if exports of such
commodity or technology to such country, end use, or
end user are controlled multilaterally pursuant to the
agreement of an export control regime described in
paragraph (2).
(c) EXPORT LICENSING POLICIES FOR CONTROLLED
COUNTRIES
AND
CONTROLLED
END
USES
OR
END
USERS.—
(1) EXPORTS TO CONTROLLED COUNTRIES, AND
END USES OR END USERS.—
(A) IN GENERAL.—The Secretary shall re-
quire authority or permission to export commod-
ities and technology on the security control list
to a controlled country, a controlled end use, or
a controlled end user.
(B) PRESUMPTION OF APPROVAL FOR CIVIL
END USES.—Subject to subparagraph (C), appli-
cations to export commodities or technology for
civil end uses shall carry a presumption of ap-
proval.
(C) PRESUMPTION
OF
DENIAL
FOR
CON-
TROLLED
END
USERS.—Exports to controlled
end users of commodities or technology on which
controls are in effect under this section shall
carry a presumption of denial.
ƒ(D) BASIS FOR DENIAL.—Licenses may be
denied under this section only if the commodity
or technology meets the requirements of subpara-
graph (A) or (B) of subsection (a)(1).≈
(2) CIVIL
END
USE.—A determination under
paragraph (1)(B) of whether commodities or tech-
nology are for civil end use shall be based on the fol-
lowing criteria:
(A) Whether the stated end use is civil.
(B) Whether the civil application of the
commodities or technology is well established in
countries other than controlled countries.
(C) Whether the commodities or technology
proposed for export are reasonable in quantity
and quality for the proposed end use.
(D) The risk of diversion to an unauthor-
ized use or consignee, including whether such di-
version can be verified.
(d) EXPORT CONTROL REGIMES AND LICENSING POLI-
CIES.—For the purposes of creating effective multilateral
export controls and strengthening the controls imposed by
export control regimes, the Secretary of State shall, with
respect to each export control regime, pursue negotiations
with other members of such regime to accomplish the follow-
ing objectives:
(1) Development of a common list of commodities
and technology to which export controls are applied,
and a common list of countries, and end uses or end
users, to which exports are controlled, by members of
the regime.
(2) Agreement on the same treatment, to be ap-
plied by all members of the regime, of exports and re-
exports to members of the regime, cooperating coun-
tries, and other countries that are not controlled coun-
tries.
(3) National procedures resulting in comparable
implementation and enforcement of export controls
among the members of the regime, including laws pro-
viding appropriate civil and criminal penalties and
statutes of limitations sufficient to deter potential vio-
lations.
(4) Periodic meetings of high-level representa-
tives of governments participating in the regime for
the purpose of coordinating national export control
policies and issuing policy guidance for dissemina-
tion to exporters in participating countries.
(5) Establishment of procedures for regular con-
sultation among members of the regime on proposed
export license applications that includes consultation
with individuals with sufficient technical expertise to
assess the licensing status of exports and to ensure the
reliability of end users.
(6) An enforcement mechanism that provides au-
thority for adequately trained enforcement officers to
investigate and prevent illegal exports.
(7) Development of a system of export control
documentation to verify the movement of commodities
and technology.
(8) Establishment of procedures for the coordina-
tion and sharing of information on licensing, end
users, and enforcement.
(9) The application of adequate national re-
sources to carry out paragraphs (1) through (8).
(e) INCENTIVES FOR COUNTRIES TO PARTICIPATE IN
OR COOPERATE WITH EXPORT CONTROL REGIMES.—
(1) GENERAL RULE FOR REGIMES.—Unless the
Secretary, in consultation with the Secretary of State,
determines that an existing export control regime has
failed to meet the objectives set forth in subsection (d),
exports to all countries that are members of, or co-
operating countries with respect to, that regime shall
be subject to the licensing treatment set forth in this
subsection. The Secretary shall publish each deter-
mination under this paragraph in the Federal Reg-
ister.
(2) FAVORABLE
LICENSING
TREATMENT.—Sub-
ject to paragraphs (3) and (4), unless an export con-
trol regime is the subject of a determination under
paragraph (1), no authority or permission may be re-
quired for exports of any commodity or technology
controlled by that regime to or among members of
that regime or cooperating countries with respect to
that regime.
(3) ƒEXCEPTION.—¿ EXCEPTIONS.—(A) If
the Secretary determines that a member of an export
control regime, a cooperating country with respect to
such regime, or an end user in a country that is such
a regime member or in such a cooperating country is
engaging in a pattern and practice of noncompliance
with controls agreed to by the regime—
ƒ(A)≈ (i) if the license treatment under
paragraph (2) is provided by the United States
unilaterally, the Secretary shall terminate such
treatment with respect to that noncomplying
member, cooperating country, or end user during
the period in which the determination is in ef-
fect; or
ƒ(B)≈ (ii) in any other case the Secretary
shall seek a similar determination by the other
members of the regime concerning such non-
compliance and, if such a determination is
made, the Secretary shall propose the suspension
of favorable licensing treatment of exports to that
noncomplying regime member, cooperating coun-
try, or end user by all members of the regime
during the period in which that determination is
in effect.
(B) If the Secretary of Defense deter-
mines that the absence of a requirement
of licenses for any exports described in
paragraph (2) would prove detrimental to
the national security of the United States
the Secretary of Defense may request
that a license be required for such ex-
port. If the Secretary refuses to require
the license, the Secretary shall report to
the Committees on Armed Services of the
House of Representatives and the Senate,
the Committee on Banking, Housing, and
Urban Affairs of the Senate, and the Com-
mittee on Foreign Affairs of the House of
Representatives on the reasons for refus-
ing to require a license.
(4) EXCEPTION FOR EXPORTS TO CERTAIN COUN-
TRIES.—(A) Should some of the members of an export
control regime decide to require licenses for the export
to other members of the regime or to cooperating
countries of certain items controlled by the regime, the
United States may require such licenses if—
(i) the Secretary determines that a prepon-
derance of the world’s supply of the items in-
volved would be subject to such export license re-
quirements; or
(ii) after making a determination that a
preponderance of the world’s supply of the items
involved would not be subject to such export li-
cense requirements, the Secretary, in consulta-
tion with the Secretary of State and the Sec-
retary of Defense, determines that the absence of
a requirement of export licenses for such items to
such members of the regime or cooperating coun-
tries would prove detrimental to the national se-
curity of the United States.
In any case in which the Secretary makes a deter-
mination under clause (ii), the Secretary shall pub-
lish that determination, together with a concise state-
ment of its basis and the estimated impact of the de-
termination.
(B) The Secretary shall notify the Congress at
least 30 days before a license requirement described in
subparagraph (A) goes into effect.
(f) CREATION AND ENHANCEMENT OF MULTILATERAL
CONTROL REGIMES.—
(1) EXPANSION OF MEMBERSHIP OF REGIMES.—
For each existing export control regime and for each
export control regime the United States seeks to cre-
ate, the Secretary of State, in consultation with the
Secretary, shall seek—
(A) to expand the membership of the regime
to include all countries that produce or export
items controlled pursuant to agreement by the re-
gime and share the objectives of the regime;
(B) the adoption of procedures for effective
implementation of the rules and guidelines of the
regime through uniform and consistent interpre-
tations of export controls agreed to by the re-
gime;
(C) agreement to create a secretariat, for
each regime that seeks the prevention of the pro-
liferation of weapons of mass destruction or mis-
siles, that would call regular meetings of mem-
bers of the regime and establish rules for the re-
gime; and
(D) agreement within each regime not to
render ineffective the denial of licenses by other
regime members and to establish procedures for
the coordination and regular exchange of infor-
mation about such denials.
(2) TERRORIST
THREATS
TO
REGIME
MEM-
BERS.—
(A) PRESUMPTION
OF
DENIAL
FOR
LI-
CENSES.—For each existing export control re-
gime and for each export control regime the
United States seeks to create, the Secretary of
State, in consultation with the Secretary, shall
pursue negotiations with other members of such
regime to establish a presumption of denial for
licenses for exports that would directly contribute
to acts of terrorism directed at 1 or more regime
members.—
(B) REPORTS
TO
CONGRESS.—The Sec-
retary shall annually report to the Committee on
Foreign Affairs of the House of Representatives
and the Committee on Banking, Housing, and
Urban Affairs of the Senate on the progress
made toward meeting the objectives set forth in
subparagraph (A).
(3) DISCLOSURE OF NONPROPRIETARY INFORMA-
TION.—The Secretary of State shall propose the fol-
lowing to each export control regime:
the applicant and submit for publication in the
Federal Register, that—
(i) the foreign availability does exist,
and the applicable steps are being taken
under paragraph (1); or
(ii) the foreign availability does not
exist.
(D) ROLE
OF
SECRETARY
OF
DE-
FENSE.—All determinations of the Sec-
retary 
under 
this 
subsection 
of
whether foreign availability exists
shall be made with the concurrence
of the Secretary of Defense.
(4) SHARING OF INFORMATION.—Each de-
partment or agency of the United States, includ-
ing 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
as determined by the Director of Central Intel-
ligence, furnish information to the Department
of Commerce concerning foreign availability of
items subject to export controls under this sec-
tion, including allowing access to any informa-
ƒ(C)≈ (B) determines that the controls can
reasonably be expected to achieve their intended
objectives after having taken into consideration
other factors, including the availability from one
or more countries of comparable commodities
and technology to those on which the controls are
to be imposed;
ƒ(D)≈ (C) determines that the United
States has the ability to enforce all aspects of the
proposed controls effectively;
ƒ(E)≈ (D) determines that the effect of the
proposed controls on the export performance of
the United States, the competitive position of the
United States as a supplier of items, or on the
economic well-being of individual United States
companies and their employees and communities
does not exceed the benefits to the foreign policy
or national security interests of the United
States; and
ƒ(F)≈ (E) identifies those commodities and
technology to be controlled, determines that they
must be controlled in order to achieve the in-
tended purpose of the controls, and describes the
reasons for selecting such items.
solving clause of which is as follows: ‘‘That, pur-
suant to section 106(g) of the Export Act of
1994, the President may not extend emergency
controls as specified in the report submitted to
the Congress on llllllllll.’’, with
the blank space being filled with the appropriate
date.
(B) INTRODUCTION.—On the day on which
a report is submitted to the House of Representa-
tives and the Senate under paragraph (1), a
joint resolution with respect to the extension of
controls specified in such report shall be intro-
duced (by request) in the House of Representa-
tives by the chairman of the Committee on For-
eign Affairs, for the chairman and the ranking
minority member of the Committee, or by Mem-
bers of the House designated by the chairman
and ranking minority member; and shall be in-
troduced (by request) in the Senate by the major-
ity leader of the Senate, for the majority leader
and the minority leader of the Senate, or by
Members of the Senate designated by the major-
ity leader and the minority leader of the Senate.
If either House of Congress is not in session on
the day on which such a report is submitted, the