I 
108TH CONGRESS 
1ST SESSION 
H. R. 55
To provide authority to control exports, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 7, 2003
Mr. DREIER (for himself and Mr. MENENDEZ) introduced the following bill; 
which was referred to the Committee on International Relations 
A BILL 
To provide authority to control exports, and for other 
purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Export Administration Act of 2003’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is as follows:
Sec. 1. Short title; table of contents. 
Sec. 2. Definitions. 
TITLE I—GENERAL AUTHORITY 
Sec. 101. Commerce Control List. 
Sec. 102. Delegation of authority. 
Sec. 103. Public information; consultation requirements. 
Sec. 104. Right of export.
Sec. 105. Export control advisory committees. 
Sec. 106. President’s Technology Export Council. 
Sec. 107. Prohibition on charging fees. 
TITLE II—NATIONAL SECURITY EXPORT CONTROLS 
Subtitle A—Authority and Procedures 
Sec. 201. Authority for national security export controls. 
Sec. 202. National Security Control List. 
Sec. 203. Country tiers. 
Sec. 204. Incorporated parts and components. 
Sec. 205. Petition process for modifying export status. 
Subtitle B—Foreign Availability and Mass-Market Status 
Sec. 211. Determination of foreign availability and mass-market status. 
Sec. 212. Presidential set-aside of foreign availability status determination. 
Sec. 213. Presidential set-aside of mass-market status determination. 
Sec. 214. Office of Technology Evaluation. 
TITLE III—FOREIGN POLICY EXPORT CONTROLS 
Sec. 301. Authority for foreign policy export controls. 
Sec. 302. Procedures for imposing controls. 
Sec. 303. Criteria for foreign policy export controls. 
Sec. 304. Presidential report before imposition of control. 
Sec. 305. Imposition of controls. 
Sec. 306. Deferral authority. 
Sec. 307. Review, renewal, and termination. 
Sec. 308. Termination of controls under this title. 
Sec. 309. Compliance with international obligations. 
Sec. 310. Designation of countries supporting international terrorism. 
Sec. 311. Crime control instruments. 
TITLE IV—PROCEDURES FOR EXPORT LICENSES AND 
INTERAGENCY DISPUTE RESOLUTION 
Sec. 401. Export license procedures. 
Sec. 402. Interagency dispute resolution process. 
TITLE V—INTERNATIONAL ARRANGEMENTS; FOREIGN BOYCOTTS; 
SANCTIONS; AND ENFORCEMENT 
Sec. 501. International arrangements. 
Sec. 502. Foreign boycotts. 
Sec. 503. Penalties. 
Sec. 504. Missile proliferation control violations. 
Sec. 505. Chemical and biological weapons proliferation sanctions. 
Sec. 506. Enforcement. 
Sec. 507. Administrative procedure. 
TITLE VI—EXPORT CONTROL AUTHORITY AND REGULATIONS 
Sec. 601. Export control authority and regulations. 
Sec. 602. Confidentiality of information. 
TITLE VII—MISCELLANEOUS PROVISIONS
Sec. 701. Annual report. 
Sec. 702. Technical and conforming amendments. 
Sec. 703. Savings provisions.
SEC. 2. DEFINITIONS. 
In this Act: 
(1) AFFILIATE.—The term ‘‘affiliate’’ includes 
both governmental entities and commercial entities 
that are controlled in fact by the government of a 
country. 
(2) CONTROL
OR
CONTROLLED.—The terms 
‘‘control’’ and ‘‘controlled’’ mean any requirement, 
condition, authorization, or prohibition on the export 
or reexport of an item. 
(3) CONTROL LIST.—The term ‘‘Control List’’ 
means the Commerce Control List established under 
section 101. 
(4) CONTROLLED COUNTRY.—The term ‘‘con-
trolled country’’ means a country with respect to 
which exports are controlled under section 201 or 
301. 
(5) CONTROLLED ITEM.—The term ‘‘controlled 
item’’ means an item the export of which is con-
trolled under this Act. 
(6) COUNTRY.—The term ‘‘country’’ means a 
sovereign country or an autonomous customs terri-
tory.
(7) COUNTRY
SUPPORTING
INTERNATIONAL 
TERRORISM.—The term ‘‘country supporting inter-
national terrorism’’ means a country designated by 
the Secretary of State pursuant to section 310. 
(8) DEPARTMENT.—The term ‘‘Department’’ 
means the Department of Commerce. 
(9) EXPORT.—
(A) The term ‘‘export’’ means—
(i) an actual shipment, transfer, or 
transmission of an item out of the United 
States; 
(ii) a transfer to any person of an 
item either within the United States or 
outside of the United States with the 
knowledge or intent that the item will be 
shipped, transferred, or transmitted to an 
unauthorized recipient outside the United 
States; or 
(iii) a transfer of an item in the 
United States to an embassy or affiliate of 
a country, which shall be considered an ex-
port to that country. 
(B) The term includes a reexport.
(10) FOREIGN
AVAILABILITY
STATUS.—The 
term ‘‘foreign availability status’’ means the status 
described in section 211(d)(1). 
(11) FOREIGN
PERSON.—The term ‘‘foreign 
person’’ means—
(A) an individual who is not—
(i) a United States citizen; 
(ii) an alien lawfully admitted for per-
manent residence to the United States; or 
(iii) a protected individual as defined 
in section 274B(a)(3) of the Immigration 
and 
Nationality 
Act. 
(8 
U.S.C. 
1324b(a)(3)); 
(B) 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 
United States; and
(C) any governmental entity of a foreign 
country. 
(12) ITEM.—
(A) IN
GENERAL.—The term ‘‘item’’ 
means any good, technology, or service.
(B) OTHER DEFINITIONS.—In this para-
graph: 
(i) GOOD.—The term ‘‘good’’ means 
any article, natural or manmade substance, 
material, supply or manufactured product, 
including inspection and test equipment, 
including source code, and excluding tech-
nical data. 
(ii) TECHNOLOGY.—The term ‘‘tech-
nology’’ means specific information that is 
necessary for the development, production, 
or use of an item, and takes the form of 
technical data or technical assistance. 
(iii) SERVICE.—The term ‘‘service’’ 
means any act of assistance, help or aid. 
(13) MASS-MARKET STATUS.—The term ‘‘mass-
market status’’ means the status described in section 
211(d)(2). 
(14) MULTILATERAL
EXPORT
CONTROL
RE-
GIME.—The term ‘‘multilateral export control re-
gime’’ means an international agreement or arrange-
ment among two or more countries, including the 
United States, a purpose of which is to coordinate 
national export control policies of its members re-
garding certain terms. The term includes regimes
such as the Australia Group, the Wassenaar Ar-
rangement, the Missile Technology Control Regime 
(MTCR), and the Nuclear Suppliers’ Group Dual 
Use Arrangement. 
(15) NATIONAL SECURITY CONTROL LIST.—The 
term ‘‘National Security Control List’’ means the 
list established under section 202(a). 
(16) PERSON.—The term ‘‘person’’ includes—
(A) any individual, or partnership, corpora-
tion, business association, society, trust, organi-
zation, or any other group created or organized 
under the laws of a country; and 
(B) any government, or any governmental 
entity, including any governmental entity oper-
ating as a business enterprise. 
(17) REEXPORT.—The term ‘‘reexport’’ means 
the shipment, transfer, transshipment, or diversion 
of items from one foreign country to another. 
(18) 
SECRETARY.—The 
term 
‘‘Secretary’’ 
means the Secretary of Commerce. 
(19) UNITED
STATES.—The term ‘‘United 
States’’ means the States of the United States, the 
District of Columbia, and any commonwealth, terri-
tory, dependency, or possession of the United States, 
and includes the outer Continental Shelf, as defined
subject to licensing or other authorization or re-
quirement; and 
(2) may require any type of license, or other 
authorization, including recordkeeping and report-
ing, appropriate to the effective and efficient imple-
mentation of this Act with respect to the export of 
an item on the Control List or otherwise subject to 
control under title II or III of this Act. 
(b) TYPES
OF LICENSE
OR OTHER AUTHORIZA-
TION.—The types of license or other authorization re-
ferred to in subsection (a)(2) include the following: 
(1) SPECIFIC EXPORTS.—A license that author-
izes a specific export. 
(2) MULTIPLE EXPORTS.—A license that au-
thorizes multiple exports in lieu of a license for each 
export. 
(3) NOTIFICATION IN LIEU OF LICENSE.—A no-
tification in lieu of a license that authorizes a spe-
cific export or multiple exports subject to the condi-
tion that the exporter file with the Department ad-
vance notification of the intent to export in accord-
ance with regulations prescribed by the Secretary. 
(4) LICENSE EXCEPTION.—Authority to export 
an item on the Control List without prior license or 
notification in lieu of a license.
(c) AFTER-MARKET SERVICE
AND REPLACEMENT 
PARTS.—A license to export an item under this Act shall 
not be required for an exporter to provide after-market 
service or replacement parts in order to replace on a one-
for-one basis parts that were in an item that was lawfully 
exported from the United States, unless—
(1) the Secretary determines that such license 
is required to export such parts; or 
(2) the after-market service or replacement 
parts would materially enhance the capability of an
item which was the basis for the item being con-
trolled. 
(d) INCIDENTAL TECHNOLOGY.—A license or other 
authorization to export an item under this Act includes 
authorization to export technology related to the item, if 
the level of the technology does not exceed the minimum
necessary to install, repair, maintain, inspect, operate, or 
use the item. 
(e) REGULATIONS.—The Secretary may prescribe 
such regulations as are necessary to carry out the provi-
sions of this Act. 
SEC. 102. DELEGATION OF AUTHORITY. 
(a) IN GENERAL.—Except as provided in subsection 
(b) and subject to the provisions of this Act, the President 
may delegate the power, authority, and discretion con-
ferred upon the President by this Act to such depart-
ments, agencies, and officials of the Government as the 
President considers appropriate. 
(b) EXCEPTIONS.—
(1) DELEGATION TO APPOINTEES CONFIRMED 
BY SENATE.—No authority delegated to the Presi-
dent under this Act may be delegated by the Presi-
dent to, or exercised by, any official of any depart-
ment or agency the head of which is not appointed 
by the President, by and with the advice and consent 
of the Senate. 
(2) OTHER LIMITATIONS.—The President may 
not delegate or transfer the President’s power, au-
thority, or discretion to overrule or modify any rec-
ommendation or decision made by the Secretary, the 
Secretary of Defense, or the Secretary of State 
under this Act. 
SEC. 103. PUBLIC INFORMATION; CONSULTATION REQUIRE-
MENTS. 
(a) PUBLIC INFORMATION.—The Secretary shall 
keep the public fully informed of changes in export control 
policy and procedures instituted in conformity with this 
Act. 
(b) CONSULTATION WITH PERSONS AFFECTED.—
The Secretary shall consult regularly with representatives
of a broad spectrum of enterprises, labor organizations, 
and citizens interested in or affected by export controls 
in order to obtain their views on United States export con-
trol policy and the foreign availability or mass-market sta-
tus of controlled items. 
SEC. 104. RIGHT OF EXPORT. 
No license or other authorization to export may be 
required under this Act, or under regulations issued under 
this Act, except to carry out the provisions of this Act. 
SEC. 105. EXPORT CONTROL ADVISORY COMMITTEES. 
(a) APPOINTMENT.—Upon the Secretary’s 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 Act or being 
considered for such controls, the Secretary may appoint 
export control advisory committees with respect to any 
such items. Each such committee shall consist of rep-
resentatives of United States industry and Government of-
ficials, including officials from the Departments of Com-
merce, Defense, and State, and other appropriate depart-
ments and agencies of the Government. The Secretary 
shall permit the widest possible participation by the busi-
ness community on the export control advisory commit-
tees. 
(b) FUNCTIONS.—
(1) IN
GENERAL.—Export control advisory 
committees appointed under subsection (a) shall ad-
vise and assist the Secretary, and any other depart-
ment, agency, or official of the Government carrying 
out functions under this Act, on actions (including 
all aspects of controls imposed or proposed) designed 
to carry out the provisions of this Act concerning the 
items with respect to which such export control advi-
sory committees were appointed. 
(2) OTHER CONSULTATIONS.—Nothing in para-
graph (1) shall prevent the United States Govern-
ment from consulting, at any time, with any person 
representing an industry or the general public, re-
gardless of whether such person is a member of an 
export control advisory committee. Members of the 
public shall be given a reasonable opportunity, pur-
suant to regulations prescribed by the Secretary, to 
present information to such committees. 
(c) REIMBURSEMENT OF EXPENSES.—Upon the re-
quest of any member of any export control advisory com-
mittee appointed under subsection (a), 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.
(d) CHAIRPERSON.—Each export control advisory 
committee appointed under subsection (a) shall elect a 
chairperson, and shall meet at least every 3 months at 
the call of the chairperson, unless the chairperson deter-
mines, in consultation with the other members of the com-
mittee, that such a meeting is not necessary to achieve 
the purposes of this section. 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 with each such committee on 
such termination or extension of that committee. 
(e) ACCESS
TO INFORMATION.—To facilitate the 
work of the export control advisory committees appointed 
under subsection (a), the Secretary, in conjunction with 
other departments and agencies participating in the ad-
ministration of this Act, shall disclose to each such com-
mittee adequate information, consistent with national se-
curity and intelligence sources and methods, pertaining to 
the reasons for the export controls which are in effect or 
contemplated for the items or policies for which that com-
mittee furnishes advice. Information provided by the ex-
port control advisory committees shall not be subject to 
disclosure under section 552 of title 5, United States 
Code, and such information shall not be published or dis-
closed unless the Secretary determines that the with-
holding thereof is contrary to the national interest. 
SEC. 106. PRESIDENT’S TECHNOLOGY EXPORT COUNCIL. 
The President may establish a President’s Tech-
nology Export Council to advise the President on the im-
plementation, operation, and effectiveness of this Act. 
SEC. 107. PROHIBITION ON CHARGING FEES. 
No fee may be charged in connection with the submis-
sion or processing of an application for an export license 
under this Act.
TITLE II—NATIONAL SECURITY 
EXPORT CONTROLS 
Subtitle A—Authority and 
Procedures 
SEC. 201. AUTHORITY FOR NATIONAL SECURITY EXPORT 
CONTROLS. 
(a) AUTHORITY.—
(1) IN GENERAL.—In order to carry out the 
purposes set forth in subsection (b), the President 
may, in accordance with the provisions of this Act, 
prohibit, curtail, or require a license, or other au-
thorization for the export of any item subject to the 
jurisdiction of the United States or exported by any 
person subject to the jurisdiction of the United 
States. The President may also require record-
keeping and reporting with respect to the export of 
such item. 
(2) EXERCISE OF AUTHORITY.—The authority 
contained in this subsection shall be exercised by the 
Secretary, in consultation with the Secretary of De-
fense, the intelligence agencies, and such other de-
partments and agencies as the Secretary considers 
appropriate. 
(b) PURPOSES.—The purposes of national security 
export controls are the following: 
(1) To restrict the export of items that would 
contribute to the military potential of countries so as 
to prove detrimental to the national security of the 
United States, its allies or countries sharing com-
mon strategic objectives with the United States. 
(2) To stem the proliferation of weapons of 
mass destruction, and the means to deliver them, 
and other significant military capabilities by—
(A) leading international efforts to control 
the proliferation of chemical and biological 
weapons, nuclear explosive devices, missile deliv-
ery systems, key-enabling technologies, and 
other significant military capabilities; 
(B) controlling involvement of United 
States persons in, and contributions by United
States persons to, foreign programs intended to 
develop weapons of mass destruction, missiles, 
and other significant military capabilities, and 
the means to design, test, develop, produce, 
stockpile, or use them; and 
(C) implementing international treaties or 
other agreements or arrangements concerning 
controls on exports of designated items, reports 
on the production, processing, consumption, 
and exports and imports of such items, and 
compliance with verification programs. 
(3) To deter acts of international terrorism. 
(c) END USE AND END USER CONTROLS.—Notwith-
standing any other provision of this title, controls may be 
imposed, based on the end use or end user, on the export 
of any item, that could contribute to the proliferation of 
weapons of mass destruction or the means to deliver them. 
(d) ENHANCED CONTROLS.—
(1) IN GENERAL.—Notwithstanding any other 
provisions of this title, the President may determine 
that applying the provisions of section 204 or 211 
with respect to an item on the National Security 
Control List would constitute a significant threat to 
the national security of the United States and that 
such item requires enhanced control. If the Presi-
dent determines that enhanced control should apply 
to such item, the item may be excluded from the 
provisions of section 204, section 211, or both, until 
such time as the President shall determine that such 
enhanced control should no longer apply to such 
item. The President may not delegate the authority 
provided for in this subsection. 
(2) REPORT
TO
CONGRESS.—The President 
shall promptly report any determination described in 
paragraph (1), along with the specific reasons for 
the determination, to the Committee on Banking, 
Housing, and Urban Affairs of the Senate and the 
Committee on International Relations of the House 
of Representatives. 
SEC. 202. NATIONAL SECURITY CONTROL LIST. 
(a) ESTABLISHMENT OF LIST.—
(1) ESTABLISHMENT.—The Secretary shall es-
tablish and maintain a National Security Control 
List as part of the Control List. 
(2) CONTENTS.—The National Security Control 
List shall be composed of a list of items the export 
of which is controlled for national security purposes 
under this title. 
(3) IDENTIFICATION OF ITEMS FOR NATIONAL 
SECURITY CONTROL LIST.—The Secretary, with the
concurrence of the Secretary of Defense and in con-
sultation with the head of any other department or 
agency of the United States that the Secretary con-
siders appropriate, shall identify the items to be in-
cluded on the National Security Control List pro-
vided that the National Security Control List shall, 
on the date of enactment of this Act, include all of 
the items on the Commerce Control List controlled 
on the day before the date of enactment of this Act 
to protect the national security of the United States, 
to prevent the proliferation of weapons of mass de-
struction and the means to deliver them, and to 
deter acts of international terrorism. The Secretary 
shall review on a continuing basis and, with the con-
currence of the Secretary of Defense and in con-
sultation with the head of any other department or 
agency of the United States that the Secretary con-
siders appropriate, adjust the National Security 
Control List to add items that require control under 
this section and to remove items that no longer war-
rant control under this section. 
(b) RISK ASSESSMENT.—
(1) REQUIREMENT.—In establishing and main-
taining the National Security Control List, the risk 
factors set forth in paragraph (2) shall be consid-
ered, weighing national security concerns and eco-
nomic costs. 
(2) RISK FACTORS.—The risk factors referred 
to in paragraph (1), with respect to each item, are 
as follows: 
(A) The characteristics of the item. 
(B) The threat, if any, to the United 
States or the national security interest of the
United States from the misuse or diversion of 
such item. 
(C) The effectiveness of controlling the 
item for national security purposes of the 
United States, taking into account mass-market 
status, foreign availability, and other relevant 
factors. 
(D) The threat to the national security in-
terests of the United States if the item is not 
controlled. 
(E) Any other appropriate risk factors. 
(c) REPORT ON CONTROL LIST.—Not later than 90 
days after the date of enactment of this Act, the Secretary 
shall submit a report to Congress which lists all items on 
the Commerce Control List controlled on the day before 
the date of enactment of this Act to protect the national 
security of the United States, to prevent the proliferation
of weapons of mass destruction and the means to deliver 
them, and to deter acts of international terrorism, not in-
cluded on the National Security Control List pursuant to 
the provisions of this Act. 
SEC. 203. COUNTRY TIERS. 
(a) IN GENERAL.—
(1) ESTABLISHMENT
AND
ASSIGNMENT.—In 
administering export controls for national security 
purposes under this title, the President shall, not 
later than 120 days after the date of enactment of 
this Act—
(A) establish and maintain a country 
tiering system in accordance with subsection 
(b); and 
(B) based on the assessments required 
under subsection (c), assign each country to an 
appropriate tier for each item or group of items 
the export of which is controlled for national se-
curity purposes under this title. 
(2) CONSULTATION.—The establishment and 
assignment of country tiers under this section shall 
be made after consultation with the Secretary, the 
Secretary of Defense, the Secretary of State, the in-
telligence agencies, and such other departments and 
agencies as the President considers appropriate.
(3) REDETERMINATION
AND
REVIEW
OF
AS-
SIGNMENTS.—The President may redetermine the 
assignment of a country to a particular tier at any 
time and shall review and, as the President con-
siders appropriate, reassign country tiers on an on-
going basis. The Secretary shall provide notice of 
any such reassignment to the Committee on Bank-
ing, Housing, and Urban Affairs of the Senate and 
the Committee on International Relations of the 
House of Representatives. 
(4) EFFECTIVE DATE OF TIER ASSIGNMENT.— 
An assignment of a country to a particular tier shall 
take effect on the date on which notice of the assign-
ment is published in the Federal Register. 
(b) TIERS.—
(1) IN GENERAL.—The President shall establish 
a country tiering system consisting of not less than 
3 tiers for purposes of this section. 
(2) RANGE.—Countries that represent the low-
est risk of diversion or misuse of an item on the Na-
tional Security Control List shall be assigned to the 
lowest tier. Countries that represent the highest risk 
of diversion or misuse of an item on the National 
Security Control List shall be assigned to the high-
est tier.
(3) OTHER COUNTRIES.—Countries that fall be-
tween the lowest and highest risk to the national se-
curity interest of the United States with respect to 
the risk of diversion or misuse of an item on the Na-
tional Security Control List shall be assigned to a 
tier other than the lowest or highest tier, based on 
the assessments required under subsection (c). 
(c) ASSESSMENTS.—The President shall make an as-
sessment of each country in assigning a country tier tak-
ing into consideration risk factors including the following: 
(1) The present and potential relationship of 
the country with the United States. 
(2) The present and potential relationship of 
the country with countries friendly to the United 
States and with countries hostile to the United 
States. 
(3) The country’s capabilities regarding chem-
ical, biological, and nuclear weapons and the coun-
try’s membership in, and level of compliance with, 
relevant multilateral export control regimes. 
(4) The country’s capabilities regarding missile 
systems and the country’s membership in, and level 
of compliance with, relevant multilateral export con-
trol regimes.
SEC. 204. INCORPORATED PARTS AND COMPONENTS. 
(a) EXPORT OF ITEMS CONTAINING CONTROLLED 
PARTS AND COMPONENTS.—Controls may not be imposed 
under this title or any other provision of law on an item 
solely because the item contains parts or components sub-
ject to export controls under this title, if the parts or com-
ponents—
(1) are essential to the functioning of the item, 
(2) are customarily included in sales of the item 
in countries other than controlled countries, and 
(3) comprise 25 percent or less of the total 
value of the item, 
unless the item itself, if exported, would by virtue of the 
functional characteristics of the item as a whole make a
significant contribution to the military or proliferation po-
tential of a controlled country or end user which would 
prove detrimental to the national security of the United 
States, or unless failure to control the item would be con-
trary to the provisions of section 201(c), section 201(d), 
or section 309 of this Act. 
(b) REEXPORTS OF FOREIGN-MADE ITEMS INCOR-
PORATING UNITED STATES CONTROLLED CONTENT.—
(1) IN GENERAL.—No authority or permission 
may be required under this title to reexport to a 
country an item that is produced in a country other 
than the United States and incorporates parts or
components that are subject to the jurisdiction of 
the United States, if the value of the controlled 
United States content of the item produced in such 
other country is 25 percent or less of the total value 
of the item; except that in the case of reexports of 
an item to a country designated as a country sup-
porting international terrorism pursuant to section 
310, controls may be maintained if the value of the 
controlled United States content is more than 10 
percent of the total value of the item. 
(2) DEFINITION
OF
CONTROLLED
UNITED 
STATES CONTENT.—For purposes of this paragraph, 
the term ‘‘controlled United States content’’ of an 
item means those parts or components that—
(A) are subject to the jurisdiction of the 
United States; 
(B) are incorporated into the item; and 
(C) would, at the time of the reexport, re-
quire a license under this title if exported from
the United States to a country to which the 
item is to be reexported. 
SEC. 205. PETITION PROCESS FOR MODIFYING EXPORT 
STATUS. 
(a) ESTABLISHMENT.—The Secretary shall establish 
a process for interested persons to petition the Secretary
to change the status of an item on the National Security 
Control List. 
(b) EVALUATIONS AND DETERMINATIONS.—Evalua-
tions and determinations with respect to a petition filed 
pursuant to this section shall be made in accordance with 
section 202. 
Subtitle B—Foreign Availability 
and Mass-Market Status 
SEC. 211. DETERMINATION OF FOREIGN AVAILABILITY AND 
MASS-MARKET STATUS. 
(a) IN GENERAL.—The Secretary shall—
(1) on a continuing basis, 
(2) upon a request from the Office of Tech-
nology Evaluation, or 
(3) upon receipt of a petition filed by an inter-
ested party, 
review and determine the foreign availability and the 
mass-market status of any item the export of which is con-
trolled under this title. 
(b) PETITION AND CONSULTATION.—
(1) IN GENERAL.—The Secretary shall establish 
a process for an interested party to petition the Sec-
retary for a determination that an item has a for-
eign availability or mass-market status. In evalu-
ating and making a determination with respect to a
petition filed under this section, the Secretary shall 
consult with the Secretary of Defense, Secretary of 
State, and other appropriate Government agencies 
and with the Office of Technology Evaluation (estab-
lished pursuant to section 214). 
(2) TIME FOR MAKING DETERMINATION.—The 
Secretary shall, within 6 months after receiving a 
petition described in subsection (a)(3), determine 
whether the item that is the subject of the petition 
has foreign availability or mass-market status and 
shall notify the petitioner of the determination. 
(c) RESULT OF DETERMINATION.—In any case in 
which the Secretary determines, in accordance with proce-
dures and criteria which the Secretary shall by regulation 
establish, that an item described in subsection (a) has—
(1) a foreign availability status, or 
(2) a mass-market status, 
the Secretary shall notify the President (and other appro-
priate departments and agencies) and publish the notice 
of the determination in the Federal Register. The Sec-
retary’s determination shall become final 30 days after the 
date the notice is published, the item shall be removed 
from the National Security Control List, and a license or 
other authorization shall not be required under this title 
with respect to the item, unless the President makes a
determination described in section 212 or 213, or takes 
action under section 309, with respect to the item in that 
30-day period. 
(d) CRITERIA FOR DETERMINING FOREIGN AVAIL-
ABILITY AND MASS-MARKET STATUS.—
(1) FOREIGN AVAILABILITY STATUS.—The Sec-
retary shall determine that an item has foreign 
availability status under this subtitle, if the item (or 
a substantially identical or directly competitive 
item)—
(A) is available to controlled countries 
from sources outside the United States, includ-
ing countries that participate with the United 
States in multilateral export controls; 
(B) can be acquired at a price that is not 
excessive when compared to the price at which 
a controlled country could acquire such item 
from sources within the United States in the 
absence of export controls; and 
(C) is available in sufficient quantity so 
that the requirement of a license or other au-
thorization with respect to the export of such 
item is or would be ineffective. 
(2) MASS-MARKET STATUS.—
(A) IN GENERAL.—In determining whether 
an item has mass-market status under this sub-
title, the Secretary shall consider the following 
criteria with respect to the item (or a substan-
tially identical or directly competitive item):
(i) The production and availability for 
sale in a large volume to multiple potential 
purchasers. 
(ii) 
The 
widespread 
distribution 
through normal commercial channels, such 
as retail stores, direct marketing cata-
logues, electronic commerce, and other 
channels. 
(iii) The conduciveness to shipment 
and delivery by generally accepted commer-
cial means of transport. 
(iv) The use for the item’s normal in-
tended purpose without substantial and 
specialized service provided by the manu-
facturer, distributor, or other third party. 
(B) DETERMINATION BY SECRETARY.—If 
the Secretary finds that the item (or a substan-
tially identical or directly competitive item) 
meets the criteria set forth in subparagraph
(A), the Secretary shall determine that the item 
has mass-market status. 
(3) SPECIAL RULES.—For purposes of this sub-
title—
(A) SUBSTANTIALLY
IDENTICAL
ITEM.—
The determination of whether an item in rela-
tion to another item is a substantially identical 
item shall include a fair assessment of end-uses, 
the properties, nature, and quality of the item. 
(B) DIRECTLY COMPETITIVE ITEM.—
(i) IN GENERAL.—The determination 
of whether an item in relation to another 
item is a directly competitive item shall in-
clude a fair assessment of whether the 
item, although not substantially identical 
in its intrinsic or inherent characteristics, 
is substantially equivalent for commercial 
purposes and may be adapted for substan-
tially the same uses. 
(ii) EXCEPTION.—An item is not di-
rectly competitive with a controlled item if 
the item is substantially inferior to the 
controlled item with respect to characteris-
tics that resulted in the export of the item 
being controlled.
SEC. 212. PRESIDENTIAL SET-ASIDE OF FOREIGN AVAIL-
ABILITY STATUS DETERMINATION. 
(a) CRITERIA FOR PRESIDENTIAL SET-ASIDE.—
(1) GENERAL CRITERIA.—
(A) IN GENERAL.—If the President deter-
mines that—
(i) decontrolling or failing to control 
an item constitutes a threat to the national 
security of the United States, and export 
controls on the item would advance the na-
tional security interests of the United 
States, 
(ii) there is a high probability that the 
foreign availability of an item will be elimi-
nated through international negotiations 
within a reasonable period of time taking 
into account the characteristics of the 
item, or 
(iii) United States controls on the 
item have been imposed under section 309, 
the President may set aside the Secretary’s de-
termination of foreign availability status with 
respect to the item. 
(B) 
NONDELEGATION.—The 
President 
may not delegate the authority provided for in 
this paragraph.
(2) REPORT
TO
CONGRESS.—The President 
shall promptly—
(A) report any set-aside determination de-
scribed in paragraph (1), along with the specific 
reasons for the determination, to the Committee 
on Banking, Housing, and Urban Affairs of the 
Senate and the Committee on International Re-
lations of the House of Representatives; and 
(B) publish the determination in the Fed-
eral Register. 
(b) PRESIDENTIAL
ACTION
IN
CASE
OF
SET-
ASIDE.—
(1) IN GENERAL.—
(A) NEGOTIATIONS.—In any case in which 
export controls are maintained on an item be-
cause the President has made a determination 
under subsection (a), the President shall ac-
tively pursue negotiations with the governments 
of the appropriate foreign countries for the pur-
pose of eliminating such availability. 
(B) REPORT
TO
CONGRESS.—Not later 
than the date the President begins negotiations, 
the President shall notify in writing the Com-
mittee on Banking, Housing, and Urban Affairs 
of the Senate and the Committee on Inter-
national Relations of the House of Representa-
tives that the President has begun such nego-
tiations and why the President believes it is im-
portant to the national security that export con-
trols on the item involved be maintained. 
(2) PERIODIC REVIEW OF DETERMINATION.—
The President shall review a determination described 
in subsection (a) at least every 6 months. Promptly 
after each review is completed, the Secretary shall 
submit to the committees of Congress referred to in 
paragraph (1)(B) a report on the results of the re-
view, together with the status of international nego-
tiations to eliminate the foreign availability of the 
item. 
(3) 
EXPIRATION
OF
PRESIDENTIAL
SET-
ASIDE.—A determination by the President described 
in subsection (a)(1)(A) (i) or (ii) shall cease to apply 
with respect to an item on the earlier of—
(A) the date that is 6 months after the date 
on which the determination is made under sub-
section (a), if the President has not commenced 
international negotiations to eliminate the for-
eign availability of the item within that 6-month 
period;
(B) the date on which the negotiations de-
scribed in paragraph (1) have terminated with-
out achieving an agreement to eliminate foreign 
availability; 
(C) the date on which the President deter-
mines that there is not a high probability of 
eliminating foreign availability of the item 
through negotiation; or 
(D) the date that is 18 months after the 
date on which the determination described in 
subsection (a)(1)(A) (i) or (ii) is made if the 
President has been unable to achieve an agree-
ment to eliminate foreign availability within 
that 18-month period. 
(4) ACTION ON EXPIRATION OF PRESIDENTIAL 
SET-ASIDE.—Upon the expiration of a Presidential 
set-aside under paragraph (3) with respect to an 
item, the Secretary shall not require a license or 
other authorization to export the item. 
SEC. 213. PRESIDENTIAL SET-ASIDE OF MASS-MARKET STA-
TUS DETERMINATION. 
(a) CRITERIA FOR PRESIDENTIAL SET-ASIDE.—
(1) GENERAL CRITERIA.—If the President de-
termines that—
(A)(i) decontrolling or failing to control an 
item constitutes a serious threat to the national 
security of the United States, and 
(ii) export controls on the item would ad-
vance the national security interests of the 
United States, or 
(B) United States controls on the item 
have been imposed under section 309, 
the President may set aside the Secretary’s deter-
mination of mass-market status with respect to the 
item. 
(2) NONDELEGATION.—The President may not 
delegate the authority provided for in this sub-
section. 
(b) PRESIDENTIAL
ACTION
IN
CASE
OF
SET-
ASIDE.—
(1) IN GENERAL.—In any case in which export 
controls are maintained on an item because the 
President has made a determination under sub-
section (a), the President shall promptly report the 
determination, along with the specific reasons for 
the determination, to the Committee on Banking, 
Housing, and Urban Affairs of the Senate and the 
Committee on International Relations of the House 
of Representatives, and shall publish notice of the
determination in the Federal Register not later than 
30 days after the Secretary publishes notice of the 
Secretary’s determination that an item has mass-
market status. 
(2) PERIODIC REVIEW OF DETERMINATION.—
The President shall review a determination made 
under subsection (a) at least every 6 months. 
Promptly after each review is completed, the Sec-
retary shall submit a report on the results of the re-
view to the Committee on Banking, Housing, and 
Urban Affairs of the Senate and the Committee on 
International Relations of the House of Representa-
tives. 
SEC. 214. OFFICE OF TECHNOLOGY EVALUATION. 
(a) IN GENERAL.—
(1) ESTABLISHMENT
OF
OFFICE.—The Sec-
retary shall establish in the Department of Com-
merce an Office of Technology Evaluation (in this 
section referred to as the ‘‘Office’’), which shall be 
under the direction of the Secretary. The Office 
shall be responsible for gathering, coordinating, and 
analyzing all the necessary information in order for 
the Secretary to make determinations of foreign 
availability and mass-market status under this Act. 
(2) STAFF.—
(A) IN GENERAL.—The Secretary shall en-
sure that the Office include persons to carry 
out the responsibilities set forth in subsection 
(b) of this section that have training, expertise, 
and experience in—
(i) economic analysis; 
(ii) the defense industrial base; 
(iii) technological developments; and 
(iv) national security and foreign pol-
icy export controls. 
(B) DETAILEES.—In addition to employees 
of the Department of Commerce, the Secretary 
may accept on nonreimbursable detail to the 
Office, employees of the Departments of De-
fense, State, and Energy and other departments 
and agencies as appropriate. 
(b) RESPONSIBILITIES.—The Office shall be respon-
sible for—
(1) conducting foreign availability assessments 
to determine whether a controlled item is available 
to controlled countries and whether requiring a li-
cense, or denial of a license for the export of such 
item, is or would be ineffective; 
(2) conducting mass-market assessments to de-
termine whether a controlled item is available to
controlled countries because of the mass-market sta-
tus of the item; 
(3) monitoring and evaluating worldwide tech-
nological developments in industry sectors critical to 
the national security interests of the United States 
to determine foreign availability and mass-market 
status of controlled items; 
(4) monitoring and evaluating multilateral ex-
port control regimes and foreign government export 
control policies and practices that affect the national 
security interests of the United States; 
(5) conducting assessments of United States in-
dustrial sectors critical to the United States defense 
industrial base and how the sectors are affected by 
technological developments, technology transfers, 
and foreign competition; and 
(6) conducting assessments of the impact of 
United States export control policies on— 
(A) United States industrial sectors critical 
to the national security interests of the United 
States; and 
(B) the United States economy in general. 
(c) REPORTS TO CONGRESS.—The Secretary shall 
make available to the Committee on International Rela-
tions of the House of Representatives and the Committee
on Banking, Housing, and Urban Affairs of the Senate 
as part of the Secretary’s annual report required under 
section 701 information on the operations of the Office, 
and on improvements in the Government’s ability to assess 
foreign availability and mass-market status, during the 
fiscal year preceding the report, including information on 
the training of personnel, and the use of Commercial Serv-
ice Officers of the United States and Foreign Commercial 
Service to assist in making determinations. The informa-
tion shall also include a description of determinations 
made under this Act during the preceding fiscal year that 
foreign availability or mass-market status did or did not 
exist (as the case may be), together with an explanation 
of the determinations. 
(d) SHARING OF INFORMATION.—Each department 
or agency of the United States, including any intelligence
agency, and all contractors with any such department or 
agency, shall, consistent with the need to protect intel-
ligence sources and methods, furnish information to the 
Office concerning foreign availability and the mass-market 
status of items subject to export controls under this Act.
TITLE III—FOREIGN POLICY 
EXPORT CONTROLS 
SEC. 301. AUTHORITY FOR FOREIGN POLICY EXPORT CON-
TROLS. 
(a) AUTHORITY.—
(1) IN GENERAL.—In order to carry out the 
purposes set forth in subsection (b), the President 
may, in accordance with the provisions of this Act, 
prohibit, curtail, or require a license, other author-
ization, recordkeeping, or reporting for the export of 
any item subject to the jurisdiction of the United 
States or exported by any person subject to the ju-
risdiction of the United States. 
(2) EXERCISE OF AUTHORITY.—The authority 
contained in this subsection shall be exercised by the 
Secretary, in consultation with the Secretary of 
State and such other departments and agencies as 
the Secretary considers appropriate. 
(b) PURPOSES.—The purposes of foreign policy ex-
port controls are the following: 
(1) To promote the foreign policy objectives of 
the United States, consistent with the purposes of 
this section and the provisions of this Act. 
(2) To promote international peace, stability, 
and respect for fundamental human rights.
(3) To use export controls to deter and punish 
acts of international terrorism and to encourage 
other countries to take immediate steps to prevent 
the use of their territories or resources to aid, en-
courage, or give sanctuary to those persons involved 
in directing, supporting, or participating in acts of 
international terrorism. 
(c) FOREIGN PRODUCTS.—No authority or permis-
sion may be required under this title to reexport to a coun-
try an item that is produced in a country other than the 
United States and incorporates parts or components that 
are subject to the jurisdiction of the United States, except 
that in the case of reexports of an item to a country des-
ignated as a country supporting international terrorism 
pursuant to section 310, controls may be maintained if 
the value of the controlled United States content is more 
than 10 percent of the value of the item. 
(d) CONTRACT SANCTITY.—
(1) IN GENERAL.—The President may not pro-
hibit the export of any item under this title if that 
item is to be exported—
(A) in performance of a binding contract, 
agreement, or other contractual commitment 
entered into before the date on which the Presi-
dent reports to Congress the President’s inten-
tion to impose controls on that item under this 
title; or 
(B) under a license or other authorization 
issued under this Act before the earlier of the 
date on which the control is initially imposed or 
the date on which the President reports to Con-
gress the President’s intention to impose con-
trols under this title. 
(2) EXCEPTION.—The prohibition contained in 
paragraph (1) shall not apply in any case in which 
the President determines and certifies to the Com-
mittee on Banking, Housing, and Urban Affairs of 
the Senate and the Committee on International Re-
lations of the House of Representatives that—
(A) there is a serious threat to a foreign 
policy interest of the United States; 
(B) the prohibition of exports under each 
binding contract, agreement, commitment, li-
cense, or authorization will be instrumental in 
remedying the situation posing the serious 
threat; and 
(C) the export controls will be in effect 
only as long as the serious threat exists. 
SEC. 302. PROCEDURES FOR IMPOSING CONTROLS. 
(a) NOTICE.—
(1) INTENT TO IMPOSE FOREIGN POLICY EX-
PORT CONTROL.—Except as provided in section 306, 
not later than 45 days before imposing or imple-
menting an export control under this title, the Presi-
dent shall publish in the Federal Register—
(A) a notice of intent to do so; and 
(B) provide for a period of not less than 
30 days for any interested person to submit
comments on the export control proposed under 
this title. 
(2) PURPOSES OF NOTICE.—The purposes of 
the notice are—
(A) to provide an opportunity for the for-
mulation of an effective export control policy 
under this title that advances United States 
economic and foreign policy interests; and 
(B) to provide an opportunity for negotia-
tions to achieve the purposes set forth in sec-
tion 301(b). 
(b) NEGOTIATIONS.—During the 45-day period that 
begins on the date of notice described in subsection (a), 
the President may negotiate with the government of the 
foreign country against which the export control is pro-
posed in order to resolve the reasons underlying the pro-
posed export control.
(c) CONSULTATION.—
(1) REQUIREMENT.—The President shall con-
sult with the Committee on Banking, Housing, and 
Urban Affairs of the Senate and the Committee on 
International Relations of the House of Representa-
tives regarding any export control proposed under 
this title and the efforts to achieve or increase multi-
lateral cooperation on the issues or problems under-
lying the proposed export control. 
(2) CLASSIFIED
CONSULTATION.—The con-
sultations described in paragraph (1) may be con-
ducted on a classified basis if the Secretary con-
siders it necessary. 
SEC. 303. CRITERIA FOR FOREIGN POLICY EXPORT CON-
TROLS. 
Each export control imposed by the President under 
this title shall—
(1) have clearly stated and specific United 
States foreign policy objectives; 
(2) have objective standards for evaluating the 
success or failure of the export control; 
(3) include an assessment by the President 
that—
(A) the export control is likely to achieve 
such objectives and the expected time for 
achieving the objectives; and 
(B) the achievement of the objectives of 
the export control outweighs any potential costs 
of the export control to other United States 
economic, foreign policy, humanitarian, or na-
tional security interests; 
(4) be targeted narrowly; and 
(5) seek to minimize any adverse impact on the 
humanitarian activities of United States and foreign 
nongovernmental organizations in the country sub-
ject to the export control. 
SEC. 304. PRESIDENTIAL REPORT BEFORE IMPOSITION OF 
CONTROL. 
(a) REQUIREMENT.—Before imposing an export con-
trol under this title, the President shall submit to the 
Committee on Banking, Housing, and Urban Affairs of 
the Senate and the Committee on International Relations 
of the House of Representatives a report on the proposed 
export control. The report may be provided on a classified 
basis if the Secretary considers it necessary. 
(b) CONTENT.—The report shall contain a descrip-
tion and assessment of each of the criteria described in
section 303. In addition, the report shall contain a descrip-
tion and assessment of—
(1) any diplomatic and other steps that the 
United States has taken to accomplish the intended 
objective of the proposed export control; 
(2) unilateral export controls imposed, and 
other measures taken, by other countries to achieve 
the intended objective of the proposed export con-
trol; 
(3) the likelihood of multilateral adoption of 
comparable export controls; 
(4) alternative measures to promote the same 
objectives and the likelihood of their potential suc-
cess; 
(5) any United States obligations under inter-
national trade agreements, treaties, or other inter-
national arrangements, with which the proposed ex-
port control may conflict; 
(6) the likelihood that the proposed export con-
trol could lead to retaliation against United States 
interests; 
(7) the likely economic impact of the proposed 
export control on the United States economy, United 
States international trade and investment, and
United States agricultural interests, commercial in-
terests, and employment; and 
(8) a conclusion that the probable achievement 
of the objectives of the proposed export control out-
weighs any likely costs to United States economic, 
foreign policy, humanitarian, or national security in-
terests, including any potential harm to the United 
States agricultural and business firms and to the 
international reputation of the United States as a 
reliable supplier of goods, services, or technology. 
SEC. 305. IMPOSITION OF CONTROLS. 
The President may impose an export control under 
this title after the submission of the report required under 
section 304 and publication in the Federal Register of a 
notice of the imposition of the export control . 
SEC. 306. DEFERRAL AUTHORITY. 
(a) AUTHORITY.—The President may defer compli-
ance with any requirement contained in section 302(a), 
304, or 305 in the case of a proposed export control if—
(1) the President determines that a deferral of 
compliance with the requirement is in the national 
interest of the United States; and 
(2) the requirement is satisfied not later than 
60 days after the date on which the export control 
is imposed under this title.
(b) TERMINATION OF CONTROL.—An export control 
with respect to which a deferral has been made under sub-
section (a) shall terminate 60 days after the date the ex-
port control is imposed unless all requirements have been 
satisfied before the expiration of the 60-day period. 
SEC. 307. REVIEW, RENEWAL, AND TERMINATION. 
(a) RENEWAL AND TERMINATION.—
(1) IN GENERAL.—Any export control imposed 
under this title shall terminate on March 31 of each 
renewal year unless the President renews the export 
control on or before such date. For purposes of this
section, the term ‘‘renewal year’’ means 2003 and 
every 2 years thereafter. 
(2) EXCEPTION.—This section shall not apply 
to an export control imposed under this title that—
(A) is required by law; 
(B) is targeted against any country des-
ignated as a country supporting international 
terrorism pursuant to section 310; or 
(C) has been in effect for less than 1 year 
as of February 1 of a renewal year. 
(b) REVIEW.—
(1) IN GENERAL.—Not later than February 1 
of each renewal year, the President shall review all 
export controls in effect under this title.
(2) CONSULTATION.—
(A) REQUIREMENT.—Before completing a 
review under paragraph (1), the President shall 
consult with the Committee on Banking, Hous-
ing, and Urban Affairs of the Senate and the 
Committee on International Relations of the 
House of Representative regarding each export 
control that is being reviewed. 
(B) 
CLASSIFIED
CONSULTATION.—The 
consultations may be conducted on a classified 
basis if the Secretary considers it necessary. 
(3) PUBLIC COMMENT.—In conducting the re-
view of each export control under paragraph (1), the 
President shall provide a period of not less than 30 
days for any interested person to submit comments 
on renewal of the export control. The President shall 
publish notice of the opportunity for public comment 
in the Federal Register not less than 45 days before 
the review is required to be completed. 
(c) REPORT TO CONGRESS.—
(1) REQUIREMENT.—Before renewing an export 
control imposed under this title, the President shall 
submit to the committees of Congress referred to in 
subsection (b)(2)(A) a report on each export control 
that the President intends to renew.
(2) FORM AND CONTENT OF REPORT.—The re-
port may be provided on a classified basis if the Sec-
retary considers it necessary. Each report shall con-
tain the following: 
(A) A clearly stated explanation of the spe-
cific United States foreign policy objective that 
the existing export control was intended to 
achieve. 
(B) An assessment of—
(i) the extent to which the existing ex-
port control achieved its objectives before 
renewal based on the objective criteria es-
tablished for evaluating the export control; 
and 
(ii) the reasons why the existing ex-
port control has failed to fully achieve its 
objectives and, if renewed, how the export 
control will achieve that objective before 
the next renewal year. 
(C) An updated description and assess-
ment of—
(i) each of the criteria described in 
section 303, and
(ii) each matter required to be re-
ported under section 304(b) (1) through 
(8). 
(3) RENEWAL
OF
EXPORT
CONTROL.—The 
President may renew an export control under this 
title after submission of the report described in 
paragraph (2) and publication of notice of renewal 
in the Federal Register. 
SEC. 308. TERMINATION OF CONTROLS UNDER THIS TITLE. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, the President—
(1) shall terminate any export control imposed 
under this title if the President determines that the 
control has substantially achieved the objective for 
which it was imposed; and 
(2) may terminate at any time any export con-
trol imposed under this title that is not required by 
law. 
(b) EXCEPTION.—Paragraphs (1) and (2) of sub-
section (a) do not apply to any export control imposed pur-
suant to section 310. 
(c) EFFECTIVE DATE OF TERMINATION.—The termi-
nation of an export control pursuant to this section shall 
take effect on the date notice of the termination is pub-
lished in the Federal Register.
SEC. 309. COMPLIANCE WITH INTERNATIONAL OBLIGA-
TIONS. 
Notwithstanding any other provision of this Act set-
ting forth limitations on authority to control exports and 
except as provided in section 304, the President may im-
pose controls on exports to a particular country or coun-
tries—
(1) of items listed on the control list of a multi-
lateral export control regime, as defined in section 
2(14); or 
(2) in order to fulfill obligations or commit-
ments of the United States under resolutions of the 
United Nations and under treaties, or other inter-
national agreements and arrangements, to which the 
United States is a party. 
SEC. 310. DESIGNATION OF COUNTRIES SUPPORTING 
INTERNATIONAL TERRORISM. 
(a) LICENSE
REQUIRED.—Notwithstanding 
any 
other provision of this Act setting forth limitations on the 
authority to control exports, a license shall be required for 
the export of any item to a country if the Secretary of 
State has determined that—
(1) the government of such country has repeat-
edly provided support for acts of international ter-
rorism; and
(2) the export of the item could make a signifi-
cant contribution to the military potential of such 
country, including its military logistics capability, or 
could enhance the ability of such country to support 
acts of international terrorism. 
(b) NOTIFICATION.—The Secretary and the Sec-
retary of State shall notify the Committee on International 
Relations of the House of Representatives and the Com-
mittee on Banking, Housing, and Urban Affairs and the 
Committee on Foreign Relations of the Senate at least 30 
days before issuing any license required by subsection (a). 
(c) DETERMINATIONS REGARDING REPEATED SUP-
PORT.—Each determination of the Secretary of State 
under subsection (a)(1), including each determination in
effect on the date of the enactment of the Antiterrorism 
and Arms Export Amendments Act of 1989, shall be pub-
lished in the Federal Register. 
(d) LIMITATIONS
ON
RESCINDING
DETERMINA-
TION.—A determination made by the Secretary of State 
under subsection (a)(1) may not be rescinded unless the 
President submits to the Speaker of the House of Rep-
resentatives and the Chairman of the Committee on Bank-
ing, Housing, and Urban Affairs and the Chairman of the 
Committee on Foreign Relations of the Senate—
(1) before the proposed rescission would take 
effect, a report certifying that—
(A) there has been a fundamental change 
in the leadership and policies of the government 
of the country concerned; 
(B) that government is not supporting acts 
of international terrorism; and 
(C) that government has provided assur-
ances that it will not support acts of inter-
national terrorism in the future; or 
(2) at least 45 days before the proposed rescis-
sion would take effect, a report justifying the rescis-
sion and certifying that—
(A) the government concerned has not pro-
vided any support for international terrorism 
during the preceding 6-month period; and 
(B) the government concerned has pro-
vided assurances that it will not support acts of 
international terrorism in the future. 
(e) INFORMATION TO BE INCLUDED IN NOTIFICA-
TION.—The Secretary and the Secretary of State shall in-
clude in the notification required by subsection (b)—
(1) a detailed description of the item to be of-
fered, including a brief description of the capabilities 
of any item for which a license to export is sought;
(2) the reasons why the foreign country or 
international organization to which the export or 
transfer is proposed to be made needs the item 
which is the subject of such export or transfer and
a description of the manner in which such country 
or organization intends to use the item; 
(3) the reasons why the proposed export or 
transfer is in the national interest of the United 
States; 
(4) an analysis of the impact of the proposed 
export or transfer on the military capabilities of the 
foreign country or international organization to 
which such export or transfer would be made; 
(5) an analysis of the manner in which the pro-
posed export would affect the relative military 
strengths of countries in the region to which the 
item which is the subject of such export would be de-
livered and whether other countries in the region 
have comparable kinds and amounts of the item; and 
(6) an analysis of the impact of the proposed 
export or transfer on the United States relations 
with the countries in the region to which the item 
which is the subject of such export would be deliv-
ered.
SEC. 311. CRIME CONTROL INSTRUMENTS. 
(a) IN GENERAL.—Crime control and detection in-
struments and equipment shall be approved for export by 
the Secretary only pursuant to an individual export li-
cense. Notwithstanding any other provision of this Act—
(1) any determination by the Secretary of what 
goods or technology shall be included on the list es-
tablished pursuant to this subsection as a result of 
the export restrictions imposed by this section shall 
be made with the concurrence of the Secretary of 
State, and 
(2) any determination by the Secretary to ap-
prove or deny an export license application to export 
crime control or detection instruments or equipment 
shall be made in concurrence with the recommenda-
tions of the Secretary of State submitted to the Sec-
retary with respect to the application pursuant to 
section 401 of this Act, 
except that, if the Secretary does not agree with the Sec-
retary of State with respect to any determination under 
paragraph (1) or (2), the matter shall be referred to the 
President for resolution. 
(b) EXCEPTION.—The provisions of this section shall 
not apply with respect to exports to countries that are 
members of the North Atlantic Treaty Organization or to 
Japan, Australia, or New Zealand, or to such other coun-
tries as the President shall designate consistent with the 
purposes of this section and section 502B of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2304). 
TITLE IV—PROCEDURES FOR EX-
PORT LICENSES AND INTER-
AGENCY 
DISPUTE 
RESOLU-
TION 
SEC. 401. EXPORT LICENSE PROCEDURES. 
(a) RESPONSIBILITY OF THE SECRETARY.—
(1) IN GENERAL.—All applications for a license 
or other authorization to export a controlled item 
shall be filed in such manner and include such infor-
mation as the Secretary may, by regulation, pre-
scribe. 
(2) PROCEDURES.—In guidance and regulations 
that implement this section, the Secretary shall de-
scribe the procedures required by this section, the 
responsibilities of the Secretary and of other depart-
ments and agencies in reviewing applications, the 
rights of the applicant, and other relevant matters 
affecting the review of license applications. 
(3) CALCULATION OF PROCESSING TIMES.—In 
calculating the processing times set forth in this 
title, the Secretary shall use calendar days, except 
that if the final day for a required action falls on a
weekend or holiday, that action shall be taken no 
later than the following business day. 
(4) CRITERIA
FOR
EVALUATING
APPLICA-
TIONS.—In determining whether to grant an appli-
cation to export a controlled item under this Act, the 
following criteria shall be considered: 
(A) The characteristics of the controlled 
item. 
(B) The threat to—
(i) the national security interests of 
the United States from items controlled 
under title II of this Act; or
(ii) the foreign policy of the United 
States from items controlled under title III 
of this Act. 
(C) The country tier designation of the 
country to which a controlled item is to be ex-
ported pursuant to section 203. 
(D) The risk of export diversion or misuse 
by—
(i) the exporter; 
(ii) the method of export; 
(iii) the end-user; 
(iv) the country where the end-user is 
located; and
(v) the end-use. 
(E) Risk mitigating factors including, but 
not limited to—
(i) changing the characteristics of the 
controlled item; 
(ii) after-market monitoring by the ex-
porter; and 
(iii) post-shipment verification. 
(b) INITIAL SCREENING.—
(1) UPON RECEIPT OF APPLICATION.—Upon re-
ceipt of an export license application, the Secretary 
shall enter and maintain in the records of the De-
partment information regarding the receipt and sta-
tus of the application. 
(2) INITIAL PROCEDURES.—
(A) IN GENERAL.—Not later than 9 days 
after receiving any license application, the Sec-
retary shall—
(i) contact the applicant if the appli-
cation is improperly completed or if addi-
tional information is required, and hold the 
application for a reasonable time while the 
applicant provides the necessary correc-
tions or information, and such time shall
not be included in calculating the time pe-
riods prescribed in this title; 
(ii) refer the application, through the 
use of a common data base or other 
means, and all information submitted by 
the applicant, and all necessary rec-
ommendations and analyses by the Sec-
retary to the Secretary of Defense, the 
Secretary of State, and the heads of and 
other departments and agencies the Sec-
retary considers appropriate; 
(iii) ensure that the classification stat-
ed on the application for the export items 
is correct; and 
(iv) return the application if a license 
is not required. 
(B) REFERRAL
NOT
REQUIRED.—In the 
event that the head of a department or agency 
determines that certain types of applications 
need not be referred to the department or agen-
cy, such department or agency head shall notify 
the Secretary of the specific types of such appli-
cations that the department or agency does not 
wish to review.
(3) WITHDRAWAL OF APPLICATION.—An appli-
cant may, by written notice to the Secretary, with-
draw an application at any time before final action. 
(c) ACTION BY OTHER DEPARTMENTS AND AGEN-
CIES.—
(1) REFERRAL TO OTHER AGENCIES.—The Sec-
retary shall promptly refer a license application to 
the departments and agencies under subsection (b) 
to make recommendations and provide information 
to the Secretary. 
(2) RESPONSIBILITY
OF
REFERRAL
DEPART-
MENTS AND AGENCIES.—The Secretary of Defense, 
the Secretary of State, and the heads of other re-
viewing departments and agencies shall take all nec-
essary actions in a prompt and responsible manner 
on an application. Each department or agency re-
viewing an application under this section shall estab-
lish and maintain records properly identifying and 
monitoring the status of the matter referred to the 
department or agency. 
(3) ADDITIONAL
INFORMATION
REQUESTS.—
Each department or agency to which a license appli-
cation is referred shall specify to the Secretary any 
information that is not in the application that would 
be required for the department or agency to make