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or order issued under this title shall be fined not
more than 5 times the value of the exports involved
or $500,000, whichever is greater, or imprisoned not
more than 10 years, or both.
(2) VIOLATIONS BY A PERSON OTHER THAN AN
INDIVIDUAL.—Except as provided in paragraph (3),
any person other than an individual who knowingly
violates or conspires to or attempts to violate any
provision of this title or any regulation, license, or
order issued under this title shall be fined not more
than 10 times the value of the exports involved or
$1,000,000, whichever is greater.
(3) ANTIBOYCOTT VIOLATIONS.—
(A) Any individual who knowingly violates
or conspires to or attempts to violate any regu-
lation or order issued under section 108 shall
be fined, for each violation, not more than 5
times the value of the exports involved or
$250,000, whichever is greater, or imprisoned
not more than 10 years, or both.
(B) Any person other than an individual
who knowingly violates or conspires to or at-
tempts to violate any regulation or order issued
under section 108 shall be fined, for each viola-
tion, not more than 5 times the value of the ex-
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ports involved or $500,000, whichever is great-
er.
(b) FORFEITURE OF PROPERTY INTEREST AND PRO-
CEEDS.—
(1) FORFEITURE.—Any person who is convicted
under subsection (a)(1) or (2) shall, in addition to
any other penalty, forfeit to the United States—
(A) any of that person’s interest in, secu-
rity of, claim against, or property or contractual
rights of any kind in the commodities or tan-
gible items that were the subject of the viola-
tion;
(B) any of that person’s interest in, secu-
rity of, claim against, or property or contractual
rights of any kind in tangible property that was
used in the export or attempt to export that
was the subject of the violation; and
(C) any of that person’s property con-
stituting, or derived from, any proceeds ob-
tained directly or indirectly as a result of the
violation.
(2) PROCEDURES.—The procedures in any for-
feiture under this subsection, and the duties and au-
thority of the courts of the United States and the
Attorney General with respect to any forfeiture ac-
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tion under this subsection or with respect to any
property that may be subject to forfeiture under this
subsection, shall be governed by the provisions of
chapter 46 of title 18, United States Code, to the
same extent as property subject to forfeiture under
that chapter.
(c) CIVIL
PENALTIES; ADMINISTRATIVE
SANC-
TIONS.—
(1) CIVIL PENALTIES.—The Secretary may im-
pose a civil penalty of not more than $250,000 for
each violation of this title or any regulation, license,
or order issued under this title, either in addition to
or in lieu of any other liability or penalty which may
be imposed, except that the civil penalty for each
such violation of regulations issued under section
108 may not exceed $50,000.
(2) DENIAL OF EXPORT PRIVILEGES.—The Sec-
retary may deny the export privileges of any person,
including suspending or revoking the authority of
any person to export or receive United States-origin
commodities or technology subject to this title, on
account of any violation of this title or any regula-
tion, license, or order issued under this title.
(d) PAYMENT OF CIVIL PENALTIES.—The payment
of any civil penalty imposed under subsection (c) may be
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made a condition, for a period not exceeding 1 year after
the penalty has become due but has not been paid, to the
granting, restoration, or continuing validity of any export
license, permission, or privilege granted or to be granted
to the person upon whom such penalty is imposed. In addi-
tion, the payment of any civil penalty imposed under sub-
section (c) may be deferred or suspended in whole or in
part for a period of time no longer than any probation
period (which may exceed 1 year) that may be imposed
upon such person. Such deferral or suspension shall not
operate as a bar to the collection of the penalty in the
event that the conditions of the suspension, deferral, or
probation are not fulfilled.
(e) REFUNDS.—Any amount paid in satisfaction of
any civil penalty imposed under subsection (c) shall be cov-
ered into the Treasury as a miscellaneous receipt. The
head of the department or agency concerned may, in his
or her discretion, refund any such civil penalty imposed
under subsection (c), within 2 years after payment, on the
ground of a material error of fact or law in the imposition
of the penalty. Notwithstanding section 1346(a) of title
28, United States Code, no action for the refund of any
such penalty may be maintained in any court.
(f) EFFECT OF OTHER CONVICTIONS.—
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(1) DENIAL OF EXPORT PRIVILEGES.—Any per-
son convicted of a violation of—
(A) this title or the Export Administration
Act of 1979,
(B) the International Emergency Economic
Powers Act,
(C) section 793, 794, or 798 of title 18,
United States Code,
(D) section 4(b) of the Internal Security
Act of 1950 (50 U.S.C. 783(b)),
(E) section 38 of the Arms Export Control
Act,
(F) section 16 of the Trading with the
Enemy Act (59 U.S.C. App. 16),
(G) any regulation, license, or order issued
under any provision of law listed in subpara-
graph (A), (B), (C), (D), (E), or (F), or
(H) section 371 or 1001 of title 18, United
States Code, if in connection with the export of
commodities or technology controlled under this
title, any regulation, license or order issued
under the International Emergency Economic
Powers Act, or defense articles or defense serv-
ices controlled under the Arms Export Control
Act,
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may, at the discretion of the Secretary, be denied ex-
port privileges under this title for a period of up to
10 years from the date of the conviction. The Sec-
retary may also revoke any export license under this
title in which such person had an interest at the
time of the conviction.
(2) RELATED
PERSONS.—The Secretary may
exercise the authority under paragraph (1) with re-
spect to any person related, through affiliation, own-
ership, control, or position of responsibility, to any
person convicted of any violation of a law set forth
in paragraph (1), upon a showing of such relation-
ship with the convicted person, after providing notice
and opportunity for a hearing.
(g) STATUTE OF LIMITATIONS.—Any proceeding in
which a civil penalty or other administrative sanction
(other than a temporary denial order) is sought under sub-
section (c) may not be instituted more than 5 years after
the date of the alleged violation, except that, in any case
in which a criminal indictment alleging a violation of this
title is returned within the time limits prescribed by law
for the institution of such action, the statute of limitations
for bringing a proceeding to impose such a civil penalty
or other administrative sanction under this title shall,
upon the return of the criminal indictment, be tolled
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against all persons named as a defendant. The tolling of
the statute of limitations shall continue for a period of
6 months from the date a conviction becomes final or the
indictment is dismissed.
(h) VIOLATIONS DEFINED BY REGULATION.—Noth-
ing in this section shall limit the power of the Secretary
to define by regulation violations under this title.
(i) OTHER AUTHORITIES.—Nothing in subsection
(c), (d), (e), (f), or (g) limits—
(1) the availability of other administrative or
judicial remedies with respect to violations of this
title, or any regulation, order, or license issued
under this title;
(2) the authority to compromise and settle ad-
ministrative proceedings brought with respect to any
such violation; or
(3) the authority to compromise, remit, or miti-
gate seizures and forfeitures pursuant to section
1(b) of title VI of the Act of June 15, 1917 (22
U.S.C. 401(b)).
(j) PRIVATE RIGHT OF ACTION.—Any person—
(1) against whom an act of discrimination de-
scribed in section 108(a)(1)(B) is committed, or
(2) who, on account of a violation of the regula-
tions issued pursuant to section 108(a), loses an op-
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portunity to engage in a commercial venture pursu-
ant to a contract, joint venture, or other commercial
transaction, including an opportunity to bid or ten-
der an offer for a contract,
may bring an action in an appropriate district court of
the United States against the United States person com-
mitting the violation, for recovery of actual damages in-
curred on account of such act of discrimination or lost
opportunity. In any such action the court may award puni-
tive damages. An action may be brought under this sub-
section against a United States person whether or not the
United States person has been determined under this sec-
tion to have violated the regulations issued pursuant to
section 108(a) on account of which the action is brought.
In an action brought under this subsection, unless the
court finds that the interests of justice require otherwise,
the court shall designate the substantially prevailing party
or parties in the action, and the remaining parties shall
pay the reasonable attorneys’ fees of the substantially pre-
vailing party or parties in such proportion as the court
shall determine.
SEC. 111. CONTROLLING PROLIFERATION ACTIVITY.
(a) PROLIFERATION CONTROLS.—
(1) MISSILE
TECHNOLOGY
CONTROLS.—The
Secretary, in consultation with the Secretary of De-
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fense and the heads of other appropriate depart-
ments and agencies and consistent with sections 103
and 104(g)—
(A) shall establish and maintain, as part of
the control index established under section
104(b), dual-use items on the MTCR Annex;
(B) may include, as part of the control
index established under section 104(b), items
that—
(i) would make a material contribu-
tion to the design, development, test, pro-
duction, stockpiling, or use of missile deliv-
ery systems, and
(ii) are not included in the MTCR
Annex but which the United States has
proposed to the other members of the
MTCR for inclusion in the MTCR Annex;
and
(C) shall require a license under paragraph
(1) or (2) of section 104(a), consistent with the
arrangements of the MTCR, for—
(i) any export of items on the control
index pursuant to subparagraphs (A) and
(B) to any country; and
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(ii) any export of items that the ex-
porter knows is destined for a project or
facility for the design, development, or
manufacture of a missile in a country that
is not an adherent to the MTCR.
(2) CHEMICAL AND BIOLOGICAL WEAPONS CON-
TROLS.—The Secretary, in consultation with the
Secretary of Defense and the heads of other appro-
priate departments and agencies and consistent with
sections 103 and 104(g)—
(A) shall establish and maintain, as part of
the control index established under section
104(b), dual-use items listed by the Australia
Group or the Chemical Weapons Convention;
(B) may include, as part of the control
index established under section 104(b), items
that—
(i) would make a material contribu-
tion to the design, development, test, pro-
duction, stockpiling, or use of chemical or
biological weapons, and
(ii) are not contained on the list of
controlled items of the Australia Group but
which the United States has proposed to
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the other members of the Australia Group
for inclusion in such list; and
(C) shall require a license under paragraph
(1) or (2) of section 104(a), consistent with the
arrangements of the Australia Group and the
Chemical Weapons Convention, for—
(i) any export of items on the control
index pursuant to subparagraphs (A) and
(B) to any country, except as provided for
in section 105(e); and
(ii) any export of items that the ex-
porter knows is destined for a project or
facility for the design, development, or
manufacture of a chemical or biological
weapon.
(3) POLICY OF DENIAL OF LICENSES.—(A) Li-
censes under paragraph (1)(C) should in general be
denied if the ultimate consignee of the commodities
or technology is a facility in a country that is not
an adherent to the MTCR and the facility is de-
signed to develop or build missiles.
(B) Licenses under paragraph (1)(C) shall be
denied if the ultimate consignee of the commodities
or technology is a facility in a country the govern-
ment of which has been determined under section
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106(i)(1) to have repeatedly provided support for
acts of international terrorism.
(b) TECHNICAL AMENDMENTS
TO ARMS EXPORT
CONTROL ACT.—(1) Section 71(a) of the Arms Export
Control Act (22 U.S.C. 2797(a)) is amended by striking
‘‘6(l) of the Export Administration Act of 1979’’ and in-
serting ‘‘111(a) of the Export Administration Act of
1996’’.
(2) Section 81(a)(1) of the Arms Export Control Act
(22 U.S.C. 2798(a)(1)) is amended in subparagraphs (A)
and (B) by inserting ‘‘under this Act’’ after ‘‘United
States’’ the second place it appears in each subparagraph.
(c) GENERAL PROHIBITION.—Notwithstanding any
other provision of this title, the export of commodities or
technology shall be prohibited if the ultimate consignee is
a program or activity for the design, development, manu-
facture, stockpiling, testing, or other acquisition of a
weapon of mass destruction or missile in a country that
is not an adherent to the regime controlling such weapon
or missile, unless the Secretary determines such export
would not make a material contribution to such program
or activity.
(d) CHEMICAL
AND BIOLOGICAL WEAPONS PRO-
LIFERATION SANCTIONS.—
(1) IMPOSITION OF SANCTIONS.—
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(A) DETERMINATION
BY
THE
PRESI-
DENT.—Except 
as 
provided 
in 
paragraph
(2)(B), the President shall impose both of the
sanctions described in paragraph (3) if the
President determines that a foreign person, on
or after the date of the enactment of this Act,
has knowingly and materially contributed—
(i) through the export from the Unit-
ed States of any goods or technology that
are subject to the jurisdiction of the Unit-
ed States under this title, or
(ii) through the export from any other
country of any goods or technology that
would be, if they were United States goods
or technology, subject to the jurisdiction of
the United States under this title,
to the efforts by any foreign country, project, or
entity described in subparagraph (B) to use, de-
velop, produce, stockpile, or otherwise acquire
chemical or biological weapons.
(B) COUNTRIES, PROJECTS, OR ENTITIES
RECEIVING
ASSISTANCE.—Subparagraph 
(A)
applies in the case of—
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(i) any foreign country that the Presi-
dent determines has, at any time after
January 1, 1980—
(I) used chemical or biological
weapons in violation of international
law;
(II) used lethal chemical or bio-
logical weapons against its own na-
tionals; or
(III) made substantial prepara-
tions to engage in the activities de-
scribed in subclause (I) or (II);
(ii) any foreign country whose govern-
ment is determined for purposes of section
106(i) to be a government that has repeat-
edly provided support for acts of inter-
national terrorism; or
(iii) 
any 
other 
foreign 
country,
project, or entity designated by the Presi-
dent for purposes of this subsection.
(C) PERSONS AGAINST WHICH SANCTIONS
ARE TO BE IMPOSED.—Sanctions shall be im-
posed pursuant to subparagraph (A) on—
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(i) the foreign person with respect to
which the President makes the determina-
tion described in that subparagraph;
(ii) any successor entity to that for-
eign person;
(iii) any foreign person that is a par-
ent or subsidiary of that foreign person if
that parent or subsidiary knowingly as-
sisted in the activities which were the basis
of that determination; and
(iv) any foreign person that is an af-
filiate of that foreign person if that affili-
ate knowingly assisted in the activities
which were the basis of that determination
and if that affiliate is controlled in fact by
that foreign person.
(2) CONSULTATIONS
WITH
AND
ACTIONS
BY
FOREIGN GOVERNMENT OF JURISDICTION.—
(A) CONSULTATIONS.—If the President
makes the determinations described in para-
graph (1)(A) with respect to a foreign person,
the Congress urges the President to initiate
consultations immediately with the government
with primary jurisdiction over that foreign per-
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son with respect to the imposition of sanctions
pursuant to this subsection.
(B) ACTIONS BY GOVERNMENT OF JURIS-
DICTION.—In order to pursue such consulta-
tions with that government, the President may
delay imposition of sanctions pursuant to this
subsection for a period of up to 90 days. Fol-
lowing these consultations, the President shall
impose sanctions unless the President deter-
mines and certifies to the Congress that that
government has taken specific and effective ac-
tions, including appropriate penalties, to termi-
nate the involvement of the foreign person in
the activities described in paragraph (1)(A).
The President may delay imposition of sanc-
tions for an additional period of up to 90 days
if the President determines and certifies to the
Congress that that government is in the process
of taking the actions described in the preceding
sentence.
(C) REPORT
TO
CONGRESS.—The Presi-
dent shall report to the Congress, not later than
90 days after making a determination under
paragraph (1)(A), on the status of consultations
with the appropriate government under this
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subsection, and the basis for any determination
under subparagraph (B) of this paragraph that
such government has taken specific corrective
actions.
(3) SANCTIONS.—
(A) DESCRIPTION
OF
SANCTIONS.—The
sanctions to be imposed pursuant to paragraph
(1)(A) are, except as provided in subparagraph
(B) of this paragraph, the following:
(i) PROCUREMENT
SANCTION.—The
United States Government shall not pro-
cure, or enter into any contract for the
procurement of, any goods or services from
any person described in paragraph (1)(C).
(ii) IMPORT SANCTIONS.—The impor-
tation into the United States of products
produced by any person described in para-
graph (1)(C) shall be prohibited.
(B) EXCEPTIONS.—The President shall
not be required to apply or maintain sanctions
under this subsection—
(i) in the case of procurement of de-
fense articles or defense services—
(I) under existing contracts or
subcontracts, including the exercise of
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options for production quantities to
satisfy United States operational mili-
tary requirements;
(II) if the President determines
that the person or other entity to
which the sanctions would otherwise
be applied is a sole source supplier of
the defense articles or services, that
the defense articles or services are es-
sential, and that alternative sources
are not readily or reasonably avail-
able; or
(III) if the President determines
that such articles or services are es-
sential to the national security under
defense coproduction agreements;
(ii) to products or services provided
under contracts entered into before the
date on which the President publishes his
intention to impose sanctions;
(iii) to—
(I) spare parts,
(II) component parts, but not
finished products, essential to United
States products or production, or
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(III) routine servicing and main-
tenance of products, to the extent that
alternative sources are not readily or
reasonably available;
(iv) to information and technology es-
sential to United States products or pro-
duction; or
(v) to medical or other humanitarian
items.
(4) TERMINATION OF SANCTIONS.—The sanc-
tions imposed pursuant to this subsection shall apply
for a period of at least 12 months following the im-
position of sanctions and shall cease to apply there-
after only if the President determines and certifies
to the Congress that reliable information indicates
that the foreign person with respect to which the de-
termination was made under paragraph (1)(A) has
ceased to aid or abet any foreign government,
project, or entity in its efforts to acquire chemical or
biological weapons capability as described in that
paragraph.
(5) WAIVER.—
(A) CRITERION FOR WAIVER.—The Presi-
dent may waive the application of any sanction
imposed on any person pursuant to this sub-
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section, after the end of the 12-month period
beginning on the date on which that sanction
was imposed on that person, if the President
determines and certifies to the Congress that
such waiver is important to the national secu-
rity interests of the United States.
(B) NOTIFICATION
OF
AND
REPORT
TO
CONGRESS.—If the President decides to exercise
the waiver authority provided in subparagraph
(A), the President shall so notify the Congress
not less than 20 days before the waiver takes
effect. Such notification shall include a report
fully 
articulating 
the 
rationale 
and 
cir-
cumstances which led the President to exercise
the waiver authority.
(6) DEFINITION
OF
FOREIGN
PERSON.—For
purposes of this subsection, the term ‘‘foreign per-
son’’ means—
(A) an individual who is not a citizen of
the United States or an alien lawfully admitted
for permanent residence to the United States;
or
(B) a corporation, partnership, or other
entity which is created or organized under the
laws of a foreign country or which has its prin-
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cipal place of business outside the United
States.
(e) MISSILE
PROLIFERATION
CONTROL
VIOLA-
TIONS.—
(1) VIOLATIONS
BY
UNITED
STATES
PER-
SONS.—
(A) SANCTIONS.—(i) If the President de-
termines that a United States person know-
ingly—
(I) exports, transfers, or otherwise en-
gages in the trade of any item on the
MTCR Annex, in violation of the provi-
sions of section 38 (22 U.S.C. 2778) or
chapter 7 of the Arms Export Control Act,
this title, or any regulations or orders is-
sued under any such provisions,
(II) conspires to or attempts to en-
gage in such export, transfer, or trade, or
(III) facilitates such export, transfer,
or trade by any other person,
then the President shall impose the applicable
sanctions described in clause (ii).
(ii) The sanctions which apply to a United
States person under clause (i) are the following:
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(I) If the item on the MTCR Annex
involved in the export, transfer, or trade is
missile equipment or technology within cat-
egory II of the MTCR Annex, then the
President shall deny to such United States
person, for a period of 2 years, licenses for
the transfer of missile equipment or tech-
nology controlled under this title.
(II) If the item on the MTCR Annex
involved in the export, transfer, or trade is
missile equipment or technology within cat-
egory I of the MTCR Annex, then the
President shall deny to such United States
person, for a period of not less than 2
years, all licenses for items the export of
which is controlled under this title.
(B) DISCRETIONARY SANCTIONS.—In the
case of any determination referred to in sub-
paragraph (A), the Secretary may pursue any
other appropriate penalties under section 110.
(C) WAIVER.—The President may waive
the imposition of sanctions under subparagraph
(A) on a person with respect to a product or
service if the President certifies to the Congress
that—
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(i) the product or service is essential
to the national security of the United
States; and
(ii) such person is a sole source sup-
plier of the product or service, the product
or service is not available from any alter-
native reliable supplier, and the need for
the product or service cannot be met in a
timely manner by improved manufacturing
processes or technological developments.
(2) TRANSFERS
OF
MISSILE
EQUIPMENT
OR
TECHNOLOGY BY FOREIGN PERSONS.—
(A) SANCTIONS.—(i) Subject to subpara-
graphs (C) through (G), if the President deter-
mines that a foreign person, after the date of
the enactment of this section, knowingly—
(I) exports, transfers, or otherwise en-
gages in the trade of any MTCR equip-
ment or technology that contributes to the
design, development, or production of mis-
siles in a country that is not an adherent
to the MTCR and would be, if it were
United States-origin equipment or tech-
nology, subject to the jurisdiction of the
United States under this title,
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(II) conspires to or attempts to en-
gage in such export, transfer, or trade, or
(III) facilitates such export, transfer,
or trade by any other person,
or if the President has made a determination
with respect to a foreign person, under section
73(a) of the Arms Export Control Act, then the
President shall impose on that foreign person
the applicable sanctions under clause (ii).
(ii) The sanctions which apply to a foreign
person under clause (i) are the following:
(I) If the item involved in the export,
transfer, or trade is within category II of
the MTCR Annex, then the President shall
deny, for a period of 2 years, licenses for
the transfer to such foreign person of mis-
sile equipment or technology the export of
which is controlled under this title.
(II) If the item involved in the export,
transfer, or trade is within category I of
the MTCR Annex, then the President shall
deny, for a period of not less than 2 years,
licenses for the transfer to such foreign
person of items the export of which is con-
trolled under this title.
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(III) If, in addition to actions taken
under subclauses (I) and (II), the Presi-
dent determines that the export, transfer,
or trade has substantially contributed to
the design, development, or production of
missiles in a country that is not an adher-
ent to the MTCR, then the President shall
prohibit, for a period of not less than 2
years, the importation into the United
States of products produced by that for-
eign person.
(B) INAPPLICABILITY WITH RESPECT TO
MTCR
ADHERENTS.—Subparagraph (A) does
not apply with respect to—
(i) any export, transfer, or trading ac-
tivity that is authorized by the laws of an
adherent to the MTCR, if such authoriza-
tion is not obtained by misrepresentation
or fraud; or
(ii) any export, transfer, or trade of
an item to an end user in a country that
is an adherent to the MTCR.
(C) EFFECT OF ENFORCEMENT ACTIONS
BY MTCR ADHERENTS.—Sanctions set forth in
subparagraph (A) may not be imposed under
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this paragraph on a person with respect to acts
described in such subparagraph or, if such
sanctions are in effect against a person on ac-
count of such acts, such sanctions shall be ter-
minated, if an adherent to the MTCR is taking
judicial or other enforcement against that per-
son with respect to such acts, or that person
has been found by the government of an adher-
ent to the MTCR to be innocent of wrongdoing
with respect to such acts.
(D) ADVISORY OPINIONS.—The Secretary,
in consultation with the Secretary of State and
the Secretary of Defense, may, upon the re-
quest of any person, issue an advisory opinion
to that person as to whether a proposed activity
by that person would subject that person to
sanctions under this paragraph. Any person
who relies in good faith on such an advisory
opinion which states that the proposed activity
would not subject a person to such sanctions,
and any person who thereafter engages in such
activity, may not be made subject to such sanc-
tions on account of such activity.
(E) WAIVER AND REPORT TO CONGRESS.—
(i) In any case other than one in which an advi-
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sory opinion has been issued under subpara-
graph (D) stating that a proposed activity
would not subject a person to sanctions under
this paragraph, the President may waive the
application of subparagraph (A) to a foreign
person if the President determines that such
waiver is essential to the national security of
the United States.
(ii) In the event that the President decides
to apply the waiver described in clause (i), the
President shall so notify the Congress not less
than 20 working days before issuing the waiver.
Such notification shall include a report fully ar-
ticulating the rationale and circumstances
which led the President to apply the waiver.
(F) ADDITIONAL WAIVER.—The President
may waive the imposition of sanctions under
subparagraph (A) on a person with respect to
a product or service if the President certifies to
the Congress that—
(i) the product or service is essential
to the national security of the United
States; and
(ii) such person is a sole source sup-
plier of the product or service, the product
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or service is not available from any alter-
native reliable supplier, and the need for
the product or service cannot be met in a
timely manner by improved manufacturing
processes or technological developments.
(G) EXCEPTIONS
FROM
IMPORT
SANC-
TIONS.—The President shall not apply the
sanction under this subsection prohibiting the
importation of the products of a foreign per-
son—
(i) in the case of procurement of de-
fense articles or defense services—
(I) under existing contracts or
subcontracts, including the exercise of
options for production quantities to
satisfy requirements essential to the
national security of the United States;
(II) if the President determines
that the person to which the sanctions
would be applied is a sole source sup-
plier of the defense articles and serv-
ices, that the defense articles or serv-
ices are essential to the national secu-
rity of the United States, and that al-
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ternative sources are not readily or
reasonably available; or
(III) if the President determines
that such articles or services are es-
sential to the national security of the
United States under defense co-
production agreements;
(ii) to products or services provided
under contracts entered into before the
date on which the President publishes his
intention to impose the sanctions; or
(iii) to—
(I) spare parts,
(II) component parts, but not
finished products, essential to United
States products or production,
(III) routine services and mainte-
nance of products, to the extent that
alternative sources are not readily or
reasonably available, or
(IV) information and technology
essential to United States products or
production.
(3) DEFINITIONS.—For purposes of this sub-
section—
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(A) the terms ‘‘missile equipment or tech-
nology’’ and ‘‘MTCR equipment or technology’’
mean those items listed in category I or cat-
egory II of the MTCR Annex;
(B) the term ‘‘foreign person’’ means any
person other than a United States person;
(C)(i) the term ‘‘person’’ means a natural
person as well as a corporation, business asso-
ciation, partnership, society, trust, any other
nongovernmental entity, organization, or group,
and any governmental entity operating as a
business enterprise, and any successor of any
such entity; and
(ii) in the case of a country where it may
be impossible to identify a specific governmental
entity referred to in clause (i), the term ‘‘per-
son’’ means—
(I) all activities of that government
relating to the development or production
of any missile equipment or technology;
and
(II) all activities of that government
affecting the development or production of
aircraft, electronics, and space systems or
equipment; and
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(D) the term ‘‘otherwise engaged in the
trade of’’ means, with respect to a particular
export or transfer, to be a freight forwarder or
designated exporting agent, or a consignee or
end user of the item to be exported or trans-
ferred.
(f) EFFECT ON OTHER LAWS.—The provisions of
this section do not affect any activities subject to the re-
porting requirements contained in title V of the National
Security Act of 1947.
(g) SEEKING MULTILATERAL SUPPORT FOR UNILAT-
ERAL SANCTIONS.—The Secretary of State, in consulta-
tion with appropriate departments and agencies, shall seek
the support of other countries for sanctions imposed under
this section.
SEC. 112. ADMINISTRATIVE AND JUDICIAL REVIEW.
(a) APPLICABILITY.—
(1) EXEMPTIONS FROM ADMINISTRATIVE PRO-
CEDURE.—Except as provided in this section, the
functions exercised under this title are excluded
from the operation of sections 551, 553 through
559, and 701 through 706 of title 5, United States
Code.
(2) JUDICIAL
REVIEW.—Except as otherwise
provided in this section, a final agency action under
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this title may be reviewed by appeal to the United
States Court of Appeals for the District of Columbia
Circuit, to the extent provided in this paragraph.
The court’s review in any such appeal shall be lim-
ited to determining whether—
(A) a regulation—
(i) fails to take an action required by
this title;
(ii) takes an action prohibited by this
title; or
(iii) otherwise violates this title;
(B) an agency action violates this title;
(C) an agency action violates an agency
regulation establishing time requirements or
other procedural requirements of a non-discre-
tionary nature;
(D) the issuance of regulations required by
this title complies with time restrictions im-
posed by this title;
(E) license decisions are made and appeals
thereof are concluded in compliance with time
restrictions imposed by this title;
(F) classifications and advisory opinions
are issued in compliance with time restrictions
imposed by this title;
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(G) unfair impact determinations under
section 114(k) are in compliance with time re-
strictions imposed by that section; or
(H) the United States has complied with
the requirements of section 114(k) after an un-
fair impact determination has been made.
(b) PROCEDURES RELATING TO CIVIL PENALTIES
AND SANCTIONS.—
(1) ADMINISTRATIVE
PROCEDURES.—Any ad-
ministrative sanction imposed under section 110(c)
may be imposed only after notice and opportunity
for an agency hearing on the record in accordance
with sections 554 through 557 of title 5, United
States Code. The imposition of any such administra-
tive sanction shall be subject to judicial review in ac-
cordance with sections 701 through 706 of title 5,
United States Code.
(2) AVAILABILITY OF CHARGING LETTER.—Any
charging letter or other document initiating adminis-
trative proceedings for the imposition of sanctions
for violations of the regulations issued under section
108(a) shall be made available for public inspection
and copying.
(c) COLLECTION.—If any person fails to pay a civil
penalty imposed under section 110(c), the Secretary may
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ask the Attorney General to bring a civil action in an ap-
propriate district court to recover the amount imposed
(plus interest at currently prevailing rates from the date
of the final order). No such action may be commenced
more than 5 years after the order imposing the civil pen-
alty becomes final. In such an action, the validity, amount,
and appropriateness of such penalty shall not be subject
to review.
(d) IMPOSITION OF TEMPORARY DENIAL ORDERS.—
(1) GROUNDS FOR IMPOSITION.—In any case in
which there is reasonable cause to believe that a per-
son is engaged in or is about to engage in any act
or practice which constitutes or would constitute a
violation of this title, or any regulation, order, or li-
cense issued under this title, including any diversion
of goods or technology from an authorized end use
or end user, or in any case in which a criminal in-
dictment has been returned against a person alleging
a violation of this title or any of the statutes listed
in section 110(f), the Secretary may, without a hear-
ing, issue an order temporarily denying that person’s
United States export privileges (hereafter in this
subsection referred to a ‘‘temporary denial order’’).
A temporary denial order may be effective for no
longer than 180 days, but may be renewed by the
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Secretary, following notice and an opportunity for a
hearing, for additional periods of not more than 180
days each.
(2) ADMINISTRATIVE APPEALS.—The person or
persons subject to the issuance or renewal of a tem-
porary denial order may appeal the issuance or re-
newal of the temporary denial order, supported by
briefs and other material, to an administrative law
judge who shall, within 15 working days after the
appeal is filed, issue a decision affirming, modifying,
or vacating the temporary denial order. The tem-
porary denial order shall be affirmed if it is shown
that—
(A) there is reasonable cause to believe
that the person subject to the order is engaged
in or is about to engage in any act or practice
which constitutes or would constitute a violation
of this title, or any regulation, order, or license
issued under this title, or
(B) a criminal indictment has been re-
turned against the person subject to the order
alleging a violation of this title or any of the
statutes listed in section 110(f).
The decision of the administrative law judge shall be
final unless, within 10 working days after the date
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of the administrative law judge’s decision, an appeal
is filed with the Secretary. On appeal, the Secretary
shall either affirm, modify, reverse, or vacate the de-
cision of the administrative law judge by written
order within 10 working days after receiving the ap-
peal. The written order of the Secretary shall be
final and is not subject to judicial review, except as
provided in paragraph (3). The materials submitted
to the administrative law judge and the Secretary
shall constitute the administrative record for pur-
poses of review by the court.
(3) COURT
APPEALS.—An order of the Sec-
retary affirming, in whole or in part, the issuance or
renewal of a temporary denial order may, within 15
days after the order is issued, be appealed by a per-
son subject to the order to the United States Court
of Appeals for the District of Columbia Circuit,
which shall have jurisdiction of the appeal. The
court may review only those issues necessary to de-
termine whether the issuance of the temporary de-
nial order was based on reasonable cause to believe
that the person subject to the order was engaged in
or was about to engage in any act or practice which
constitutes or would constitute a violation of this
title, or any regulation, order, or license issued
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under this title, or if a criminal indictment has been
returned against the person subject to the order al-
leging a violation of this title or any of the statutes
listed in section 110(f). The court shall vacate the
Secretary’s order if the court finds that the Sec-
retary’s order is arbitrary, capricious, an abuse of
discretion, or otherwise not in accordance with law.
SEC. 113. ENFORCEMENT.
(a) GENERAL AUTHORITY AND DESIGNATION.—
(1) POLICY
GUIDANCE
ON
ENFORCEMENT.—
The Secretary, in consultation with the Secretary of
the Treasury and the heads of other appropriate de-
partments and agencies, shall be responsible for pro-
viding policy guidance on the enforcement of this
title.
(2) GENERAL AUTHORITIES.—(A) To the extent
necessary or appropriate to the enforcement of this
title or to the imposition of any penalty, forfeiture,
or liability arising under the Export Administration
Act of 1979, officers or employees of the Depart-
ment of Commerce designated by the Secretary and
officers and employees of the United States Customs
Service designated by the Commissioner may exer-
cise the enforcement authorities described in para-
graph (3).
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(B) In carrying out the enforcement authorities
described in paragraph (3), the Commissioner of
Customs, and employees of the United States Cus-
toms Service designated by the Commissioner, may
make investigations within or outside the United
States and at those ports of entry or exit from the
United States where officers of the United States
Customs Service are authorized by law to carry out
such enforcement responsibilities. Subject to para-
graph (3), the United States Customs Service is au-
thorized, in the enforcement of this title, to search,
detain (after search), and seize commodities or tech-
nology at those ports of entry or exit from the Unit-
ed States where officers of the Customs Service are
authorized by law to conduct such searches, deten-
tions, and seizures, and at those places outside the
United States where the Customs Service, pursuant
to agreements or other arrangements with other
countries, is authorized to perform enforcement ac-
tivities.
(C) In carrying out the enforcement authorities
described in paragraph (3), the Secretary, and offi-
cers and employees of the Department of Commerce
designated by the Secretary, may make investiga-
tions within the United States, and shall conduct,
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outside 
the 
United 
States, 
prelicense 
and
postshipment verifications of items licensed for ex-
port and investigations in the enforcement of section
108. The Secretary, and officers and employees of
the Department of Commerce designated by the Sec-
retary, are authorized to search, detain (after
search), and seize items at those places within the
United States other than those ports specified in
subparagraph (B). The search, detention (after
search), or seizure of items at those ports and places
specified in subparagraph (B) may be conducted by
officers and employees of the Department of Com-
merce only with the concurrence of the Commis-
sioner of Customs or a person designated by the
Commissioner.
(D) The Secretary and the Commissioner of
Customs may enter into agreements and arrange-
ments for the enforcement of this title, including for-
eign investigations and information exchange.
(3) SPECIFIC AUTHORITIES.—(A) Any officer or
employee designated under paragraph (2) may do
the following in carrying out the enforcement au-
thority under this title:
(i) Make investigations of, obtain informa-
tion from, make inspection of any books,
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records, or reports (including any writings re-
quired to be kept by the Secretary), premises,
or property of, and take the sworn testimony of,
any person.
(ii) Administer oaths or affirmations, and
by subpoena require any person to appear and
testify or to appear and produce books, records,
and other writings, or both. In the case of con-
tumacy by, or refusal to obey a subpoena issued
to, any such person, a district court of the
United States, on request of the Attorney Gen-
eral and after notice to any such person and a
hearing, shall have jurisdiction to issue an order
requiring such person to appear and give testi-
mony or to appear and produce books, records,
and other writings, or both. Any failure to obey
such order of the court may be punished by
such court as a contempt thereof. The attend-
ance of witnesses and the production of docu-
ments provided for in this clause may be re-
quired from any State, the District of Colum-
bia, or in any territory of the United States at
any designated place. Witnesses subpoenaed
under this subsection shall be paid the same
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fees and mileage as are paid witnesses in the
district courts of the United States.
(B)(i) Any officer or employee of the Office of
Export Enforcement of the Department of Com-
merce who is designated by the Secretary under
paragraph (2), and any officer or employee of the
United States Customs Service who is designated by
the Commissioner of Customs under paragraph (2),
may do the following in carrying out the enforce-
ment authority under this title:
(I) Execute any warrant or other process
issued by a court or officer of competent juris-
diction with respect to the enforcement of this
title.
(II) Make arrests without warrant for any
violation of this title committed in his or her
presence or view, or if the officer or employee
has probable cause to believe that the person to
be arrested has committed, is committing, or is
about to commit such a violation.
(III) Carry firearms.
(ii) Officers and employees of the Office of Ex-
port Enforcement designated by the Secretary under
paragraph (2) shall exercise the authorities set forth
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in clause (i) pursuant to guidelines approved by the
Attorney General.
(C) Any officer or employee of the United
States Customs Service designated by the Commis-
sioner of Customs under paragraph (2) may do the
following in carrying out the enforcement authority
under this title:
(i) Stop, search, and examine a vehicle,
vessel, aircraft, or person on which or whom the
officer or employee has reasonable cause to sus-
pect there is any item that has been, is being,
or is about to be exported from or transited
through the United States in violation of this
title.
(ii) Detain and search any package or con-
tainer in which the officer or employee has rea-
sonable cause to suspect there is any item that
has been, is being, or is about to be exported
from or transited through the United States in
violation of this title.
(iii) Detain (after search) or seize any
item, for purposes of securing for trial or for-
feiture to the United States, on or about such
vehicle, vessel, aircraft, or person or in such
package or container, if the officer or employee
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has probable cause to believe the item has been,
is being, or is about to be exported from or
transited through the United States in violation
of this title.
(4) OTHER AUTHORITIES NOT AFFECTED.—The
authorities conferred by this section are in addition
to any authorities conferred under other laws.
(b) FORFEITURE.—Any commodities or tangible
items lawfully seized under subsection (a) by designated
officers or employees shall be subject to forfeiture to the
United States. Those provisions of law relating to—
(1) the seizure, summary and judicial forfeiture,
and condemnation of property for violations of the
customs laws,
(2) the disposition of such property or the pro-
ceeds from the sale thereof,
(3) the remission or mitigation of such forfeit-
ures, and
(4) the compromise of claims,
shall apply to seizures and forfeitures incurred, or alleged
to have been incurred, under the provisions of this sub-
section, insofar as applicable and not inconsistent with
this title; except that such duties as are imposed upon the
customs officer or any other person with respect to the
seizure and forfeiture of property under the customs laws
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may be performed with respect to seizures and forfeitures
of property under this subsection by the Secretary or such
officers and employees of the Department of Commerce
as may be authorized or designated for that purpose by
the Secretary, or, upon the request of the Secretary, by
any other agency that has authority to manage and dis-
pose of seized property.
(c) REFERRAL OF CASES.—All cases involving viola-
tions of this title shall be referred to the Secretary for
purposes of determining civil penalties and administrative
sanctions under section 110(c), or to the Attorney General
for criminal action in accordance with this title or to both
the Secretary and the Attorney General.
(d) UNDERCOVER INVESTIGATION OPERATIONS.—
(1) USE OF FUNDS.—With respect to any un-
dercover investigative operation conducted by the Of-
fice of Export Enforcement of the Department of
Commerce (hereafter in this subsection referred to
as ‘‘OEE’’) necessary for the detection and prosecu-
tion of violations of this title—
(A) funds made available for export en-
forcement under this title may be used to pur-
chase property, buildings, and other facilities,
and to lease space within the United States,
without regard to sections 1341 and 3324 of
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title 31, United States Code, the third undesig-
nated paragraph under the heading of ‘‘MIS-
CELLANEOUS’’ of the Act of March 3, 1877, (40
U.S.C. 34), sections 3732(a) and 3741 of the
Revised Statutes of the United States (41
U.S.C. 11(a) and 22), and subsections (a) and
(c) of section 304, and section 305 of the Fed-
eral Property and Administrative Services Act
of 1949 (41 U.S.C. 254(a) and (c) and 255),
(B) funds made available for export en-
forcement under this title may be used to estab-
lish or to acquire proprietary corporations or
business entities as part of an undercover oper-
ation, and to operate such corporations or busi-
ness entities on a commercial basis, without re-
gard to section 9102 of title 31, United States
Code,
(C) funds made available for export en-
forcement under this title and the proceeds
from undercover operations may be deposited in
banks or other financial institutions without re-
gard to the provisions of section 648 of title 18,
United States Code, and section 3302 of title
31, United States Code, and
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(D) the proceeds from undercover oper-
ations may be used to offset necessary and rea-
sonable expenses incurred in such operations
without regard to the provisions of section 3302
of title 31, United States Code,
if the Director of OEE (or an officer or employee
designated by the Director) certifies, in writing, that
the action authorized by subparagraph (A), (B), (C),
or (D) for which the funds would be used is nec-
essary for the conduct of the undercover operation.
(2) DISPOSITION OF BUSINESS ENTITIES.—If a
corporation or business entity established or ac-
quired as part of an undercover operation with a net
value of more than $50,000 is to be liquidated, sold,
or otherwise disposed of, the Director of OEE shall
report the circumstances to the Secretary and the
Comptroller General, as much in advance of such
disposition as the Director of OEE or his or her des-
ignee determines is practicable. The proceeds of the
liquidation, sale, or other disposition, after obliga-
tions incurred by the corporation or business enter-
prise are met, shall be deposited in the Treasury of
the United States as miscellaneous receipts.
(3) DEPOSIT OF PROCEEDS.—As soon as the
proceeds from an OEE undercover investigative op-
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eration with respect to which an action is authorized
and carried out under this subsection are no longer
necessary for the conduct of such operation, such
proceeds or the balance of such proceeds remaining
at the time shall be deposited into the Treasury of
the United States as miscellaneous receipts.
(4) AUDIT AND REPORT.—(A) The Director of
OEE shall conduct a detailed financial audit of each
OEE undercover investigative operation which is
closed and shall submit the results of the audit in
writing to the Secretary. Not later than 180 days
after an undercover operation is closed, the Sec-
retary shall submit to the Congress a report on the
results of the audit.
(B) The Secretary shall submit annually to the
Congress a report, which may be included in the an-
nual report under section 115, specifying the follow-
ing information:
(i) The number of undercover investigative
operations pending as of the end of the period
for which such report is submitted.
(ii) The number of undercover investigative
operations commenced in the 1-year period pre-
ceding the period for which such report is sub-
mitted.
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except that clauses (i) and (ii) shall not apply
with respect to the report to the Congress re-
quired by subparagraph (B) of paragraph (4);
and
(C) the term ‘‘employees’’ means employ-
ees, as defined in section 2105 of title 5, United
States Code, of the Department of Commerce.
(e) REFERENCE TO ENFORCEMENT.—For purposes
of this section, a reference to the enforcement of this title
or to a violation of this title includes a reference to the
enforcement or a violation of any regulation, license, or
order issued under this title.
SEC. 114. EXPORT CONTROL AUTHORITIES AND PROCE-
DURES.
(a) POLICY GUIDANCE.—
(1) IN GENERAL.—As directed by the Presi-
dent, annual policy guidance shall be issued to pro-
vide detailed implementing guidance to export licens-
ing officials in all appropriate departments and
agencies.
(2) ELEMENTS OF ANNUAL POLICY REVIEW.—
In order to develop such annual policy guidance, ex-
port controls and other regulations to implement
this title shall be reviewed annually. This annual pol-
icy review shall include an evaluation of the benefits
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and costs of the imposition, extension, or removal of
controls under this title. This review shall include—
(A) an assessment by the Secretary of the
economic consequences of the imposition, exten-
sion, or removal of controls during the preced-
ing 12 months, including the impact on United
States exports or jobs;
(B) an assessment by the Secretary of
State of the objectives of the controls in effect
during the preceding 12 months, and the extent
to which the controls have served those objec-
tives; and
(C) an assessment by the Secretary of De-
fense of the impact that the imposition, exten-
sion, or removal of controls during the preced-
ing 12 months has had on United States na-
tional security.
(b) EXPORT
CONTROL
AUTHORITY
AND
FUNC-
TIONS.—
(1) IN GENERAL.—Unless otherwise reserved to
the President or a department or agency outside the
Department of Commerce, all power, authority, and
discretion conferred by this title shall be exercised by
the Secretary.
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(2) DELEGATION OF FUNCTIONS OF THE SEC-
RETARY.—The Secretary may delegate any function
under this title to the Under Secretary of Commerce
for Export Administration appointed under sub-
section (d) or to any other officer of the Department
of Commerce.
(c) EXPORT CONTROL POLICY COMMITTEE.—
(1) ESTABLISHMENT.—There is established an
Export Control Policy Committee (hereafter in this
subsection referred to as the ‘‘Committee’’).
(2) FUNCTIONS.—The Committee shall—
(A) provide policy guidance and advice to
the President on export control issues under
this title;
(B) review policy recommendations pro-
posed by the Secretary and other members of
the Committee; and
(C) receive policy recommendations from
other departments and agencies and resolve pol-
icy disputes among departments and agencies
under this title.
(3) MEMBERSHIP.—The Committee shall in-
clude the Secretary, the Secretary of Defense, the
Secretary of Energy, the heads of other relevant de-
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partments, and appropriate officials of the Executive
Office of the President.
(4) CHAIR.—The Committee shall be chaired by
the President or his designee.
(5) DELEGATION; OTHER REPRESENTATIVES.—
A member of the Committee under paragraph (3)
may designate the deputy head of his or her depart-
ment or agency to serve in his or her absence as a
member of the Committee, but this authority may
not be delegated to any other individual. The chair
may also invite the temporary participation in the
Committee’s meetings of representatives from other
offices and agencies as appropriate to the issues
under consideration.
(6) MEETINGS.—The chair of the Committee
may call a meeting of the Committee. Meetings shall
not be subject to section 552b of title 5, United
States Code.
(d) UNDER SECRETARY OF COMMERCE; ASSISTANT
SECRETARIES.—
(1) APPOINTMENT.—The President shall ap-
point, by and with the advice and consent of the
Senate, an Under Secretary of Commerce for Export
Administration who shall carry out all functions of
the Secretary under this title and other provisions of
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law relating to national security, as the Secretary
may delegate. The President shall appoint, by and
with the advice and consent of the Senate, two As-
sistant Secretaries of Commerce to assist the Under
Secretary in carrying out such functions.
(2) TRANSITION
PROVISIONS.—Those individ-
uals serving in the positions of Under Secretary of
Commerce for Export Administration and Assistant
Secretaries of Commerce under section 15(a) of the
Export Administration Act of 1979, on the day be-
fore the date of the enactment of this Act, shall be
deemed to have been appointed under paragraph (1),
by and with the advice and consent of the Senate,
as of such date of enactment.
(e) ISSUANCE OF REGULATIONS.—The President and
the Secretary may issue such regulations as are necessary
to carry out this title. Any such regulations the purpose
of which is to carry out section 105, 106, or 111(a) may
be issued only after the regulations are submitted for re-
view to such departments or agencies as the President con-
siders appropriate. The Secretary shall consult with the
appropriate export advisory committee appointed under
section 104(f) in formulating regulations under this title.
The second sentence of this subsection does not require
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the concurrence or approval of any official, department,
or agency to which such regulations are submitted.
(f) AMENDMENTS
TO REGULATIONS.—If the Sec-
retary proposes to amend regulations issued under this
title, the Secretary shall report to the Committee on Bank-
ing, Housing, and Urban Affairs of the Senate and the
Speaker of the House of Representatives on the intent and
rationale of such amendments. Such report shall evaluate
the cost and burden to the United States exporters of the
proposed amendments in relation to any enhancement of
licensing objectives. The Secretary shall consult with the
appropriate export advisory committees appointed under
section 104(f) in amending regulations issued under this
title.
(g) CONFIDENTIALITY OF INFORMATION.—
(1) EXEMPTIONS FROM DISCLOSURE.—
(A) INFORMATION OBTAINED ON OR BE-
FORE JUNE 30, 1980.—Except as otherwise pro-
vided 
by 
the 
third 
sentence 
of 
section
108(b)(2), information obtained under the Ex-
port Administration Act of 1979 and its prede-
cessor statutes on or before June 30, 1980,
which is deemed confidential, including Ship-
per’s Export Declarations, or with reference to
which a request for confidential treatment is
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made by the person furnishing such informa-
tion, 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
withholding thereof is contrary to the national
interest.
(B) INFORMATION OBTAINED AFTER JUNE
30, 1980.—Except as otherwise provided by the
third sentence of section 108(b)(2), information
obtained under this title or under the Export
Administration Act of 1979 after June 30,
1980, may be withheld from disclosure only to
the extent permitted by statute, except that in-
formation submitted, obtained, or considered in
connection with an application for an export li-
cense or other export authorization under the
Export Administration Act of 1979 or this title,
including—
(i) the export license or other export
authorization itself,
(ii) classification requests described in
section 109(h)(1),
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(iii) information obtained during the
course of an assessment under subsection
(k),
(iv) information or evidence obtained
in the course of any investigation, and
(v) information obtained or furnished
under this title in connection with inter-
national agreements, treaties, or obliga-
tions,
shall be withheld from public disclosure and
shall not be subject to disclosure under section
552 of title 5, United States Code, unless the
release of such information is determined by the
Secretary to be in the national interest.
(2) INFORMATION TO CONGRESS AND GAO.—
(A) IN
GENERAL.—Nothing in this title
shall be construed as authorizing the withhold-
ing of information from the Congress or from
the General Accounting Office.
(B) AVAILABILITY TO THE CONGRESS.—
(i) IN GENERAL.—All information ob-
tained at any time under this title or pre-
vious Acts regarding the control of exports,
including any report or license application
required under this title, shall be made
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available to any committee or subcommit-
tee of Congress of appropriate jurisdiction
upon the request of the chairman or rank-
ing minority member of such committee or
subcommittee.
(ii) PROHIBITION ON FURTHER DIS-
CLOSURE.—No committee, subcommittee,
or Member of Congress shall disclose any
information obtained under this title or
previous Acts regarding the control of ex-
ports which is submitted on a confidential
basis to the Congress under clause (i) un-
less the full committee to which the infor-
mation is made available determines that
the withholding of the information is con-
trary to the national interest.
(C) AVAILABILITY TO THE GAO.—
(i) IN
GENERAL.—Notwithstanding
paragraph (1), information referred to in
subparagraph (B) shall, consistent with
the protection of intelligence, counterintel-
ligence, and law enforcement sources,
methods, and activities, as determined by
the agency that originally obtained the in-
formation, and consistent with the provi-
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sions of section 716 of title 31, United
States Code, be made available only by the
agency, upon request, to the Comptroller
General of the United States or to any of-
ficer or employee of the General Account-
ing Office authorized by the Comptroller
General to have access to such informa-
tion.
(ii) PROHIBITION ON FURTHER DIS-
CLOSURES.—No officer or employee of the
General Accounting Office shall disclose,
except to the Congress in accordance with
this paragraph, any such information
which is submitted on a confidential basis
and from which any individual can be iden-
tified.
(3) INFORMATION
EXCHANGE.—Notwithstand-
ing paragraph (1), the Secretary and the Commis-
sioner of Customs shall exchange licensing and en-
forcement information with each other which is nec-
essary to facilitate enforcement efforts and effective
license decisions.
(4) PENALTIES
FOR
DISCLOSURE
OF
CON-
FIDENTIAL INFORMATION.—Any officer or employee
of the United States, or any department or agency
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thereof, who publishes, divulges, discloses, or makes
known in any manner or to any extent not author-
ized by law any confidential information that—
(A) he or she obtains in the course of his
or her employment or official duties or by rea-
son of any examination or investigation made
by, or report or record made to or filed with,
such department or agency, or officer or em-
ployee thereof, and
(B) is exempt from disclosure under this
subsection,
shall be fined not more than $10,000, or imprisoned
not more than one year, or both, shall be removed
from office or employment, and shall be subject to
a civil penalty of not more than $1,000 imposed by
the Secretary under section 110(c).
(h) AUTHORITY FOR SEMINAR AND PUBLICATIONS
FUND.—The Secretary is authorized to cooperate with
public agencies, other governments, international organi-
zations, private individuals, private associations, and other
groups in connection with seminars, publications, and re-
lated activities to carry out export activities, including
educating the public or government officials on the appli-
cation of this title and the regulations issued under this
title. The Secretary is further authorized to accept con-
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tributions of funds, property, or services in connection
with such activities to recover the cost of such programs
and activities. Contributions may include payments for
materials or services provided as part of such activities.
The contributions collected may be retained for use in cov-
ering the costs of such activities, and for providing infor-
mation to the public with respect to this title and other
export control programs of the United States and other
governments.
(i) SUPPORT OF OTHER COUNTRIES’ EXPORT CON-
TROL PROGRAM.—The Secretary is authorized to partici-
pate in and provide training to officials of other countries
on the principles and procedures for the implementation
of effective export controls and may participate in any
such training provided by other departments and agencies
of the United States.
(j) 
INCORPORATED
COMMODITIES
AND
TECH-
NOLOGY.—
(1) COMMODITIES
CONTAINING
CONTROLLED
PARTS AND COMPONENTS.—Controls may not be im-
posed under this title or any other provision of law
for a commodity solely because the commodity con-
tains parts or components subject to export controls
under this title if such parts or components—
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(A) are essential to the functioning of the
commodity,
(B) are customarily included in sales of the
commodity in countries other than controlled
countries, and
(C) comprise 25 percent or less of the total
value of the commodity,
unless the commodity itself, if exported, would by
virtue of the functional characteristics of the com-
modity as a whole make a significant contribution to
the military or proliferation potential of a controlled
country or end user which would prove detrimental
to the national security of the United States.
(2) REEXPORTS OF FOREIGN-MADE ITEMS IN-
CORPORATING U.S. ITEMS.—
(A) COMMODITIES.—(i) No authority or
permission may be required under section 105
or section 106 to reexport to a country other
than a terrorist country or an embargoed coun-
try a commodity that is produced in a country
other than the United States and incorporates
commodities that are subject to the jurisdiction
of the United States, if the value of the con-
trolled United States content of the commodity
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produced in such other country is 25 percent or
less of the total value of the commodity.
(ii) No authority or permission may be re-
quired under section 105 or section 106 to reex-
port to a terrorist country or to an embargoed
country a commodity that is produced in a
country other than the United States and incor-
porates commodities that are subject to the ju-
risdiction of the United States, if the value of
the controlled United States content of the
commodity produced in such other country is
10 percent or less of the total value of the com-
modity.
(B) TECHNOLOGY.—(i) No authority or
permission may be required under section 105
or section 106 to reexport to a country other
than a terrorist country or an embargoed coun-
try technology that is produced in a country
other than the United States and is commingled
with or drawn from technology that is produced
in the United States, if the value of the con-
trolled United States content of the technology
produced in such other country is 25 percent or
less of the total value of the technology.
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(ii) No authority or permission may be re-
quired under section 105 or section 106 to reex-
port to a terrorist country or an embargoed
country technology that is produced in a coun-
try other than the United States and is com-
mingled with or drawn from technology that is
produced in the United States, if the value of
the controlled United States content of the
technology produced in such other country is 10
percent or less of the total value of the tech-
nology.
(C) DEFINITIONS.—For purposes of this
paragraph—
(i) the ‘‘controlled United States con-
tent’’ of a commodity or technology means
those commodities or technology that—
(I) are subject to the jurisdiction
of the United States;
(II) are incorporated into the
commodity or technology; and
(III) would, at the time of the re-
export, require a license under section
105 or 106 if exported from the Unit-
ed States to a country to which the
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commodity or technology is to be reex-
ported;
(ii) an ‘‘embargoed country’’ is a
country against which an embargo is in ef-
fect under the Trading with the Enemy
Act, the International Emergency Eco-
nomic Powers Act, or other provision of
law; and
(iii) a ‘‘terrorist country’’ is a country
with respect to which a determination is in
effect that was made under section
106(i)(1)(A) of this Act, or section
6(j)(1)(A) of the Export Administration
Act of 1979, that the government of such
country has repeatedly provided support
for acts of international terrorism.
(3) TREATMENT OF TECHNOLOGY AND SOURCE
CODE.—For purposes of this subsection, technology
and source code used to design or produce foreign-
made commodities are not deemed to be incor-
porated into such foreign-made commodities.
(4) 
REPORTING
REQUIREMENTS.—Notwith-
standing paragraphs (1) through (3), the Secretary
may require persons to report to the Department of
Commerce their proposed calculations and underly-
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ing data sufficient for the Department of Commerce
to evaluate the adequacy of those calculations and
data related to commodities and technology before a
reexporter may rely upon the exclusions from con-
trols provided in this subsection.
(5) EXCEPTIONS.—Paragraphs (1) and (2) do
not require any changes to regulations in effect on
the effective date of this title and, notwithstanding
paragraphs (1) and (2), controls may be imposed on
commodities or technology transferred, after March
1, 1996, from export control under the Arms Export
Control Act to control under this title if those com-
modities or technology are designated by the Presi-
dent for exemption from paragraph (1) or (2), as
the case may be.
(k) UNFAIR
IMPACT
ON
UNITED
STATES
EX-
PORTER.—
(1) POLICY.—It is the policy of the United
States that no United States exporter should be af-
fected unfairly by export control policies or practices
unless relief from such controls would create a sig-
nificant risk to the foreign policy, nonproliferation,
or national security interests of the United States.
(2) RELIEF FROM EXPORT CONTROLS.—(A) A
person may petition the Secretary for relief from
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current export control requirements (other than con-
trol requirements specifically imposed by this title or
other provisions of law) on the basis of foreign avail-
ability. A person may also petition the Secretary for
approval of an export license application on other
grounds which the Secretary, with the concurrence
of the Secretary of Defense, shall establish by regu-
lation. The Secretary shall, upon receipt of such pe-
titions, and may, on his or her initiative, conduct as-
sessments for providing relief based upon these
grounds.
(B) For purposes of this subsection, foreign
availability exists when the controlled item is avail-
able in fact, under terms and conditions established
by the Secretary with the concurrence of the sec-
retary of Defense, to controlled countries or end
users from sources outside the United States so that
the requirement for a license is or would be ineffec-
tive in achieving the purpose of the control.
(3) PROVISIONS FOR RELIEF.—The Secretary,
in consultation with appropriate departments and
agencies, shall make determinations of facts under
paragraph (2), addressing, in the case of a petition
filed under paragraph (2), each ground for relief as-
serted in the petition, and, subject to paragraph (4),
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(2) OTHER
PROVISIONS
OF
LAW.—This title
shall not affect any administrative or judicial pro-
ceedings commenced or any application for a license
made, under those provisions of the Arms Export
Control Act which are amended by section 119, if
such proceedings or application is pending at the
time this title takes effect. Any such proceedings,
and any action on such application, shall continue
under those provisions as if those provisions had not
been amended by section 119.
(c) TREATMENT OF CERTAIN DETERMINATIONS.—
Any determination with respect to the government of a
foreign country under section 6(j) of the Export Adminis-
tration Act of 1979, that is in effect at the time this title
takes effect, shall, for purposes of this title or any other
provision of law, be deemed to be made under section
106(i) of this Act until superseded by a determination
under such section 106(i).
TITLE II—NUCLEAR
PROLIFERATION PREVENTION
SEC. 201. REPEAL OF TERMINATION OF PROVISIONS OF
THE NUCLEAR PROLIFERATION PREVENTION
ACT OF 1994.
(a) REPEAL.—Part D of the Nuclear Proliferation
Prevention Act of 1994 (part D of title VIII of the For-