I
103D CONGRESS
1ST SESSION
H. R. 3412
To provide fundamental reform of the system and authority to regulate
commercial exports, to enhance the effectiveness of export controls, to
strengthen multilateral export control regimes, and to improve the effi-
ciency of export regulation.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 28, 1993
Mr. ROTH (for himself and Mr. OBERSTAR) introduced the following bill;
which was referred jointly to the Committees on Foreign Affairs, Ways
and Means, and Rules
A BILL
To provide fundamental reform of the system and authority
to regulate commercial exports, to enhance the effective-
ness of export controls, to strengthen multilateral export
control regimes, and to improve the efficiency of export
regulation.
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
‘‘Commercial Export Administration Act of 1993’’.
(b) TABLE OF CONTENTS.—
TABLE OF CONTENTS
Sec. 1. Short title; table of contents.
Sec. 2. Findings and policy.
Sec. 3. General provisions.
Sec. 4. National security controls.
Sec. 5. Emergency controls.
Sec. 6. Export control authorities.
Sec. 7. Commercial export licenses and licensing procedures.
Sec. 8. Penalties, administrative procedures, and sanctions.
Sec. 9. Definitions; reports.
Sec. 10. Effect on other acts; conforming amendments.
Sec. 11. Authorization of appropriations; termination date.
Sec. 12. Miscellaneous provisions.
SEC. 2. FINDINGS AND POLICY.
(a) FINDINGS.—The Congress makes the following
findings:
(1) The ability of United States citizens to en-
gage in international commerce is a fundamental
right, which is to be abridged only under specific
conditions for critical national security or foreign
policy reasons. In principle, exports of commercial
goods and technology are unrestricted, except as
specified in this Act.
(2) Exporting is critical to the economic health
of the United States and, therefore, to its national
security as well. With the growing importance of ex-
ports to sustained United States economic growth
and vitality, restrictions on exports should be consid-
ered within the broader framework of the economic
performance of the United States. Restrictions on
commercial exports from the United States have had
serious adverse effects on economic competitiveness
and domestic employment, particularly when re-
straints applied by the United States are more ex-
tensive than those imposed by other countries or
when United States export control policy is uncer-
tain.
(3) Traditional strategic threats of Warsaw
Pact 
military 
capabilities 
have 
fundamentally
changed; new security threats lie in the proliferation
of weapons of mass destruction, that is, nuclear,
chemical, and biological weapons, missiles, and ad-
vanced delivery systems. Availability to certain coun-
tries and endusers of items that contribute to mili-
tary or proliferation potential is a fundamental con-
cern of the United States and should be eliminated
through negotiations and other appropriate means
whenever possible.
(4) In order for export controls to be effective,
they must be maintained multilaterally by supplier
countries, and focused only on those commercial
goods or technology that would directly, substan-
tially, and materially contribute to the military or
proliferation potential of countries or endusers pos-
ing a strategic threat to the United States. Ad hoc
approaches to export controls are no longer suffi-
cient. Greater coordination, formalization, simplifica-
tion, and consolidation of existing multilateral export
control regimes are necessary.
(5) Unilateral controls are not effective in
changing the actions or policies of other govern-
ments. Unilateral emergency controls should only be
imposed temporarily in order to allow time to seek
multilateral support. If negotiations fail, emergency
controls should expire, unless a further extension is
approved by the Congress or the emergency controls
are upgraded to an embargo.
(6) In order for export controls to be effective,
United States exporters and the United States Gov-
ernment must work closely together in developing,
implementing, harmonizing, and enforcing export
controls. The Government must clearly and specifi-
cally define which items are controlled to which spe-
cific destinations and endusers. Effectiveness of ex-
port controls is largely based on voluntary compli-
ance by the exporting public; it is, therefore, impera-
tive that industry be clearly informed in a timely
fashion about export control regulations and policies,
and that United States exporters know their cus-
tomers and, to the greatest extent practicable, the
ultimate destination of their products.
(7) Export controls cannot, by themselves, stop
the development of capabilities to produce weapons
of mass destruction. Export controls should, there-
fore, be applied as part of a well-reasoned, com-
prehensive national response to security threats, tak-
ing into account the limitations and the realities of
whether goods or technology are controllable.
(8) The residual Cold War system of export
controls faces basic problems that hamper the effec-
tiveness of export controls and unnecessarily im-
pedes legitimate United States commercial exports.
The United States export control system must be
fundamentally and substantially reformed to address
more effectively the current security challenges and
to achieve the goals of an effective and efficient ex-
port control program.
(b) POLICY.—It is the policy of the United States—
(1) to encourage and support trade with all
countries with which the United States has diplo-
matic or trading relations;
(2) that exports of commercial goods and tech-
nology are unrestricted, to be abridged only for criti-
cal national security or foreign policy reasons to the
extent provided in this Act;
(3) that absent the requirement for a validated
license, as indicated by the inclusion of specific
goods and technology on the export control index to
specified countries and endusers, no authority or
permission to export is required;
(4) to minimize unnecessary restrictions and
uncertainty in export control policy;
(5) to apply any necessary export controls in
cooperation with other supplier nations as part of
multilateral export control regimes under section 4,
and to strengthen such efforts to better coordinate,
formalize, and even consolidate national export con-
trol policies;
(6) to impose unilateral controls, under the pro-
cedures and conditions set forth in section 5, only in
response to an immediate and extraordinary threat
to the national security or foreign policy of the Unit-
ed States, and only after full consideration of the
economic impact of the controls and their effective-
ness in achieving the intended objectives, and for a
limited time in order to negotiate for multilaterial
controls;
(7) to restrict the export or reexport of only
those commercial goods and technology that would
directly, substantially, and materially—
(A) contribute to the military potential of
countries posing a strategic threat to the Unit-
ed States, or
(B) enable a country or enduser to acquire
the capability to develop, produce, stockpile,
use, or deliver weapons of mass destruction, but
only if such goods and technology are control-
lable;
(8) to administer export controls consistent
with basic standards of due process and to provide
specific guidelines to United States exporters,
through the publication of regulations, public no-
tices, and advisory opinions with respect to goods,
technology, sectors, license processing policies and
practices, destinations, and endusers subject to spe-
cific types of controls or exemptions from controls;
and
(9) to consolidate and simplify the regulation,
reporting, and documentation required of exporters.
SEC. 3. GENERAL PROVISIONS.
(a) RIGHT OF EXPORT.—No authority or permission
to export commercial goods and technology may be re-
quired under this Act or any other provision of law (other
than the Atomic Energy Act of 1954), except as provided
in sections 4 and 5 of this Act and in sections 7 and 8(b)
of the Export Administration Act of 1979.
(b) UNITED STATES COMMERCIAL EXPORT CONTROL
INDEX.—
(1) IN GENERAL.—The Secretary shall—
(A) establish and maintain a United States
Commercial Export Control Index which shall
identify all commercial goods or technology on
which controls are imposed under this Act;
(B) specify the license requirements appli-
cable to the items on the control index; and
(C) designate countries and endusers to
which exports and reexports of commercial
goods and technology are controlled.
(2) CONTENTS.—The control index shall—
(A) consist of a security control list of all
commercial goods and technology on which ex-
port and reexport controls are imposed under
section 4, and an emergency control list of all
goods and technology on which export and reex-
port controls are imposed under section 5;
(B) for each item on the control index,
specify with particularity the performance and
other identifying characteristics of the item and
provide a rationale for why the item is on the
control list;
(C) identify countries and endusers to
which exports are reexports are controlled, in-
cluding specific projects and endusers of con-
cern, cross-referenced with the list of goods and
technology on which export and reexport con-
trols are imposed; and
(D) be sufficiently specific and clear as to
guide exporters and licensing officers in deter-
minations of licensing requirements under this
Act.
(3) LICENSING OF CONTROL INDEX GOODS AND
TECHNOLOGY.—A validated license may be required
for the export or reexport of those commercial goods
and technology that are specifically and clearly iden-
tified on the control index to countries and endusers
so designated on the control index. No authority or
permission may be required to export or reexport
commercial goods and technology not so identified to
any country or enduser not so designated.
(4) REVIEW OF INDEX.—
(A) IN GENERAL.—The Secretary shall re-
view all goods and technology on the control
index maintained under paragraph (1) at least
annually. This review shall apply to the removal
of items from the control index or changes in
specifications of items on the control index. The
Secretary shall use the data developed from
such reviews in formulating United States pro-
posals for revision of multilateral controls in
COCOM and other export control regimes de-
scribed in section 4.
(B) CONSIDERATIONS.—In conducting the
annual review, the Secretary shall—
(i) consult with the appropriate indus-
try advisory committees appointed under
section 6(d) and consider—
(I) recommendations of such
committees with respect to proposed
changes in the control index; and
(II) proposals of such committees
for the removal, by the date on which
the applicable export control regime
would implement such removal, of li-
censing requirements under this Act
for goods or technology which are an-
ticipated to be widely available from
countries that are not members of
that export control regime as a result
of advances in the technological per-
formance levels of such goods or tech-
nology;
(ii) consider the results of foreign
availability determinations made under
subsection (g);
(iii) consider comments received pur-
suant to the notice of review provided
under subparagraph (C)(ii); and
(iv) consult with other departments or
agencies as the Secretary considers appro-
priate.
(C) PROCEDURES.—
(i) DURATION OF REVIEW.—The an-
nual review required under subparagraph
(A) may not extend beyond 180 days after
such review is begun.
(ii) NOTICE OF REVIEW.—Before be-
ginning each annual review, the Secretary
shall publish a notice of that review in the
Federal Register and shall provide a 30-
day period for comments and submission
of data, with or without oral presentation,
by interested Government agencies, export-
ers, and other interested parties.
(iii) REVISIONS.—The Secretary shall
make a determination of any revisions in
the control index not later than 30 days
after the end of the review period. The
concurrence or approval of any other de-
partment or agency shall not be required
before any such revision is made. The Sec-
retary shall publish in the Federal Register
any revisions in the list, with an expla-
nation of the reasons for the revisions.
(5) INDEXING.—The Secretary shall develop,
with the assistance of the industry advisory commit-
tees established under section 6(d), methodologies
and procedures for indexing products where per-
formance capabilities are measurable. Such meth-
odologies and procedures shall provide for increases
in the performance levels of goods and technology on
the control index and shall provide for the technical
specifications below which no authority or permis-
sion to export or reexport is required as compared
to the most technologically advanced commercially
available version of the same or equivalent goods or
technology. Such methodologies and procedures shall
be published and used in the annual list review of
the control index under paragraph (4).
(c) ISSUANCE OF REGULATIONS.—
(1) IN
GENERAL.—The Secretary may issue
such regulations as are necessary to carry out this
Act.
(2) 
PUBLIC
PARTICIPATION.—Unless 
dem-
onstrated as impracticable, all regulations imposing
controls on exports under this Act shall be issued in
proposed form with opportunity for public comment
before taking effect. If a regulation imposing con-
trols under this Act is issued with immediate effect,
opportunity for public comment shall also be pro-
vided and the regulation shall be reissued in final
form after public comments have been fully consid-
ered.
(3) REPORT.—The Secretary shall report to the
Committee on Banking, Housing, and Urban Affairs
of the Senate and the Committee on Foreign Affairs
of the House of Representatives on the intent and
rationale of all proposed regulations under this Act
and any proposed amendments to regulations issued
under this Act. Such report shall thoroughly evalu-
ate the costs and burden imposed on United States
exporters of the proposed regulations or amend-
ments in relation to any enhancement of export li-
censing objectives.
ring after the original publication under this
subparagraph.
(B) CONTENTS.—The Secretary shall pub-
lish—
(i) the full text of any agreements of
COCOM affecting the International Lists,
and any agreements of other export control
regimes of which the United States is a
member, together with all notes, under-
standings, and other aspects of such agree-
ments and all revisions to such texts;
(ii) subject to the limitations set forth
in subsection (f), decisions on requests for
general exceptions to the Industrial List
portion of the International Lists of
COCOM, and decisions on exceptions for
exports permitted by such other export
control regimes;
(iii) other decisions made by COCOM,
and other actions and decisions of such
other export control regimes, to the maxi-
mum extent possible; and
(iv) lists of controlled countries and
controlled endusers, projects of concern
with respect to the capability described in
section 2(b)(7)(B), unreliable practices
with respect to items on which export or
reexport controls are imposed under this
Act, and persons to whom sanctions have
been applied, or whose export privileges
have been denied, under this Act.
(C) TIMING.—Such publication shall be
made not more than 30 days after the agree-
ments are reached, or the decisions are made,
as the case may be.
(D) EXCEPTION.—The publication of a
particular matter need not be made under this
paragraph to the extent that the Secretary sub-
mits a written finding to the Congress that to
publish that matter would be contrary to na-
tional or international security, would abridge
the confidentiality of the decision-making proc-
esses of COCOM or another export control re-
gime, or would otherwise be inconsistent with
the obligations of the United States to COCOM
or another export control regime.
(e) NOTIFICATION OF THE PUBLIC; CONSULTATION
WITH INDUSTRY; RECORDKEEPING.—
(1) NOTIFICATION OF THE PUBLIC.—The Sec-
retary shall keep the public fully apprised of changes
in export control policy and procedures instituted
under this Act with a view to encouraging trade.
(2) CONSULTATION WITH INDUSTRY.—The Sec-
retary shall meet regularly with industry advisory
committees appointed under section 6(d) in order to
obtain their views on United States export control
policy and the foreign availability of commercial
goods and technology.
(3) REVIEW OF REPORTING REQUIREMENTS.—
In the administration of this Act, reporting require-
ments shall be designed so as to reduce the cost of
reporting, recordkeeping, and export documentation
required under this Act, to the extent feasible and
consistent with effective enforcement and compila-
tion of useful trade statistics. Reporting, record-
keeping, and export documentation requirements
shall be periodically reviewed and revised in the light
of developments in the field of information tech-
nology.
(f) CONFIDENTIALITY OF INFORMATION.—
(1) EXEMPTIONS FROM DISCLOSURE.—Except
as provided in paragraph (2), information obtained
by the Secretary under this Act or under previous
Acts regarding the control of exports, including any
report, export license application, or classification re-
quest which is deemed confidential, or with reference
to which a request for confidential treatment is
made by the person furnishing such information,
shall be exempt from disclosure under section 552 of
title 5, United States Code, and such information
shall not be published or disclosed unless the Sec-
retary determines that the withholding thereof is
contrary to the national interest.
(2) INFORMATION TO CONGRESS AND GAO.—
(A) IN
GENERAL.—Nothing in this Act
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 Act or pre-
vious Acts regarding the control of exports,
including any report or export license ap-
plication required under this Act, shall be
made available to any committee or sub-
committee of Congress of appropriate ju-
risdiction upon request of the chairman or
ranking minority member of such commit-
tee or subcommittee.
(ii) PROHIBITION ON FURTHER DIS-
CLOSURE.—No such committee or sub-
committee, or member thereof, shall dis-
close any information obtained under this
Act or previous Acts regarding the control
of exports which is submitted on a con-
fidential basis unless the full committee de-
termines that the withholding of that infor-
mation is contrary 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-
sions of section 716 of title 31, United
States Code, be made available only by
that agency, upon request, to the Comp-
troller General of the United States or to
any officer or employee of the General Ac-
counting Office authorized by the Comp-
troller General to have access to such in-
formation.
(ii) PROHIBITION ON FURTHER DIS-
CLOSURE.—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) PENALTIES
FOR
DISCLOSURE
OF
CON-
FIDENTIAL INFORMATION.—Any officer or employee
of the United States, or any department or agency
thereof, who publishes, divulges, discloses, or makes
known in any manner or to any extent not author-
ized by law any information to which such officer or
employee gains access in the course of his or her em-
ployment or official duties or by reason of any exam-
ination or investigation made by, or report or record
made to or filed with, such department or agency,
or officer or employee thereof, if such information is
exempt from disclosure under this subsection, shall
be fined not more than $25,000, or imprisoned not
more than 1 year, or both, and shall be removed
from office or employment.
(g) FOREIGN AVAILABILITY.—
(1) IN GENERAL.—Except when the President
determines that the absence of controls under this
Act would prove detrimental to the national security
of the United States—
(A) the Secretary shall not impose controls
under this Act on commercial goods or tech-
nology with respect to which it is determined
that there is foreign availability; and
(B) in the case of any commercial goods or
technology with respect to which it is deter-
mined that there is foreign availability, the Sec-
retary shall either—
(i) eliminate controls imposed under
this Act on such goods or technology; or
(ii) in the case of goods or technology
the export or reexport of which is con-
trolled under the terms of an export con-
trol regime, propose elimination of export
and reexport controls to countries partici-
pating in the regime and eliminate such
controls to the extent such countries agree
to such elimination.
(2) FOREIGN AVAILABILITY REVIEW.—The Sec-
retary, in consultation with appropriate industry ad-
visory committees appointed under section 6(d),
shall review and monitor on a continuing basis the
foreign availability of any commercial goods or tech-
nology on which controls are or may be imposed
under this Act. In so doing, the Secretary shall con-
sider the availability of such goods or technology,
and the anticipated availability of such goods and
technology within 6 months, within and to controlled
countries and countries other than controlled coun-
tries from sources outside the United States, and
the extent to which any such source country places
and enforces controls on the export of such goods or
technology to controlled countries. The Secretary
shall not consider the availability under license from
a country which maintains export controls on such
goods or technology cooperatively with the United
States pursuant to the agreement of COCOM or
other export control regimes, unless the Secretary
determines that the export restrictions maintained
by such country are ineffective.
(3) PROCEDURES FOR FOREIGN AVAILABILITY
DETERMINATIONS.—
(A) IN
GENERAL.—The United States
International Trade Commission (hereafter in
this subsection referred to as the ‘‘ITC’’) is
solely responsible for making foreign availability
determinations of goods and technology under
this Act. The ITC may undertake a foreign
availability assessment at any time upon its
own initiative, and shall undertake a foreign
availability assessment upon a written request
by the Secretary, or upon receipt of a written
allegation supported by reasonable evidence
from the appropriate industry advisory commit-
tee under section 6(d) or a United States per-
son that such availability exists.
(B) NOTICE
REQUIREMENTS.—Whenever
the ITC undertakes a foreign availability as-
sessment under this subsection, the ITC shall
publish notice of such assessment in the Fed-
eral Register. Not later than 4 months after
initiating such an assessment, the ITC shall de-
termine whether the foreign availability exists,
and shall submit for publication in the Federal
Register a notice of its determination, together
with a concise statement of the basis for its de-
termination. The ITC shall also forward a writ-
ten notice of its determination to the Secretary.
(C) ACTION
BY
THE
SECRETARY.—Not
later than 30 days after receipt of a determina-
tion by the ITC that foreign availability exists
with respect to a commercial good or tech-
nology, the Secretary shall either—
(i) eliminate controls under this Act
on such commercial good or technology
and publish a notice of such action in the
Federal Register;
(ii) in the case of a commercial good
or technology controlled under the terms of
export control regime, propose the elimi-
nation of controls on such commercial good
or technology in accordance with the proce-
dures of such regime and publish a notice
of such proposal in the Federal Register;
or
(iii) in any case in which the Presi-
dent determines that controls under this
Act must be maintained notwithstanding
the foreign availability because the absence
of such controls would prove detrimental to
the national security of the United States,
publish a notice of that determination in
the Federal Register, together with a con-
cise statement of the basis for that deter-
mination and the estimated economic im-
pact of the decision, and a statement that
the applicable steps are being taken under
paragraph (4).
(4) NEGOTIATIONS
TO
ELIMINATE
FOREIGN
AVAILABILITY.—
(A) IN GENERAL.—In any case in which
export controls are maintained on a commercial
good or technology notwithstanding foreign
availability on account of a determination by
the President that the absence of controls under
this Act would prove detrimental to the national
security of the United States, the Secretary
shall actively pursue negotiations with the gov-
ernments of the countries which are the sources
of the good or technology for the purpose of
eliminating the foreign availability.
(B) REMOVAL OF CONTROLS.—If, not later
than 6 months after the determination by the
President described in subparagraph (A), the
foreign availability of the good or technology
has not been eliminated, the Secretary shall re-
move export or reexport controls from the good
or technology under this Act and publish notice
of such action in the Federal Register.
(C) EFFECT
OF
AGREEMENT.—After an
agreement is reached with a country pursuant
to negotiations under this paragraph to elimi-
nate foreign availability of commercial goods or
technology, the Secretary may not require a
validated license under this Act for the export
of such commercial goods or technology to that
country.
(5) SHARING OF INFORMATION.—Each depart-
ment or agency of the United States, including any
intelligence agency, and all contractors with any
such department or agency, shall, upon the request
of the Secretary or the ITC and consistent with the
protection of intelligence sources and methods and
safeguarding of classified information, furnish infor-
mation to the ITC concerning foreign availability of
goods and technology subject to export controls
under this Act. Each such department or agency
shall allow the ITC access to any such information
from a laboratory or other facility within such de-
partment or agency.
(6) REMOVAL OF CONTROLS ON LESS SOPHISTI-
CATED
GOODS
OR
TECHNOLOGY.—In any case in
which export or reexport controls are removed from
commercial goods or technology under this sub-
section, then such controls may not be imposed or
maintained on any similar commercial goods or tech-
nology whose function, technological approach, per-
formance thresholds, and other attributes that form
the basis for controls under this Act do not exceed
the technical parameters of the commercial goods or
technology from which the controls are removed
under this subsection.
(7) REPORT
OF
DETERMINATIONS
AND
AC-
TIONS.—Not later than 10 days after any deter-
mination by the ITC under paragraph (3)(B), or in
the case of determination of the President under
paragraph (3)(C)(iii), not later than 10 days after
the initiation of negotiations under paragraph
(4)(A), the Secretary shall submit a report to the
Committee on Banking, Housing, and Urban Affairs
of the Senate and the Committee on Foreign Affairs
of the House of Representatives setting forth a de-
tailed explanation of the determination of the ITC
and the determination of the President (if applica-
ble), and the implications of such determinations.
SEC. 4. NATIONAL SECURITY CONTROLS.
(a) AUTHORITY.—
(1) IN GENERAL.—In order to carry out the
policy set forth in section 2(b)(7), the President
may, in accordance with this section, prohibit or cur-
tail the export and reexport of any commercial goods
or technology subject to the jurisdiction of the Unit-
ed States, if such goods and technology would—
(A) directly, substantially, and materially
contribute to the military capability of countries
or endusers posing a strategic threat to the
United States; or
(B) directly, substantially, and materially
enable a country or enduser to acquire the ca-
pability to develop, produce, stockpile, use, or
deliver weapons of mass destruction.
(2) EXERCISE OF AUTHORITY.—The authority
granted by this subsection shall be exercised by the
Secretary, and shall be implemented by means of ex-
port licenses issued by the Secretary.
(b) SECURITY CONTROL LIST.—
(1) IN GENERAL.—The Secretary shall establish
and maintain, as part of the control index estab-
lished under section 3(b), a security control list,
comprised of all commercial goods or technology on
which export and reexport controls are in effect
under this section, and the countries or endusers to
which the controls apply. The security control list
shall clearly identify the specific commercial goods
and technology the export or reexport of which is
controlled, and each country and enduser to which
such exports and reexports are controlled. Such list
shall be reviewed and updated at least once every 12
months.
(2) CONTROLLED GOODS AND TECHNOLOGY.—
Export or reexport controls may be imposed under
this section only on commercial goods and tech-
nology that are controllable, only if the controls
would be effective in restricting the capabilities set
forth in subsection (a)(1), and only if—
(A) the export controls are imposed pursu-
ant to an export control regime, such as
COCOM, the MTCR, the Australia Group, the
Nuclear Suppliers Group, or any export control
regime entered into by the United States under
subsection (d)(3); or
(B) in the absence of an applicable export
control regime, no foreign availability of such
goods or technology exists.
(3) 
DESIGNATED
COUNTRIES
AND
ENDUSERS.—In administering export controls under
this section, the Secretary shall, for each good and
technology listed on the security control list, des-
ignate the specific countries and endusers for which
export licenses or reexport authorizations are re-
quired. These countries and endusers may include
only—
(A) controlled countries and controlled
endusers; and
(B) non-regime countries with respect to
the export control regime which controls the ex-
port of such good and technology.
(4) 
CONTROLLED
COUNTRIES
AND
ENDUSERS.—A country may be designated a con-
trolled country, and an enduser may be designated
a controlled enduser, with respect to a particular
good or technology on the security control list only
if exports of such good or technology to such country
or enduser are controlled cooperatively pursuant to
the agreement of an export control regime, and only
if such country or enduser—
(A) has military capabilities, policies, or
activities which represent a direct strategic
threat to the national security of the members
of the export control regime; or
(B) is engaged in or is deliberately assist-
ing another controlled country or enduser in the
design, development, production, stockpiling,
use, or delivery of weapons of mass destruction.
(5) REVISION
OF
DESIGNATION
OF
CON-
TROLLED COUNTRIES AND ENDUSERS.—
(A) CONTROLLED
COUNTRIES.—In any
case in which a controlled country—
(i) adopts military policies that rep-
resent a lesser strategic threat to members
of the appropriate export control regime;
(ii) terminates efforts to acquire
weapons of mass destruction and adopts
policies consistent with international ef-
forts to restrict the proliferation of weap-
ons of mass destruction;
(iii) terminates activities that would
assist the capabilities of other controlled
countries in those activities described in
paragraph (4)(B); or
(iv) agrees to adhere to policies and
practices of the appropriate export control
regime and implements an effective export
control system;
such that the reasons for its being designated
a controlled country cease to exist, the Sec-
retary shall propose to the appropriate export
control regime to remove the country’s designa-
tion as a controlled country. Upon the removal
of such designation by the export control re-
gime, the Secretary shall, with respect to the
commercial goods and technology which are
controlled under this section pursuant to the
agreement of that regime, change the designa-
tion of the country on the security control list
from a controlled country to a non-regime coun-
try. If the country also agrees to participate in
or be a cooperating country with respect to the
export control regime, the Secretary shall re-
move such country from the security control
list.
(B) CONTROLLED
ENDUSERS.—In any
case in which a controlled enduser—
(i) ceases to engage in the design, de-
velopment, production, stockpiling, use, or
delivery of weapons of mass destruction; or
(ii) terminates activities that would
assist the capabilities of controlled coun-
tries in those activities described in para-
graph (4)(B);
such that the reasons for its being designated
a controlled enduser cease to exist, the Sec-
retary shall propose to the appropriate export
control regime to remove the enduser’s designa-
tion as a controlled enduser. Upon the removal
of such designation by the export control re-
gime, the Secretary shall, with respect to the
commercial goods and technology which are
controlled under this section pursuant to agree-
ment of that regime, remove that enduser from
the security control list.
(c) EXPORT LICENSING POLICIES FOR DESIGNATED
COUNTRIES AND CONTROLLED ENDUSERS.—
(1) EXPORTS TO CONTROLLED COUNTRIES AND
ENDUSERS.—
(A) IN GENERAL.—Except as provided in
subsection (d)(5), the Secretary shall require
authority or permission to export or reexport
goods and technology on the security control
list to controlled countries and controlled
endusers.
(B) PRESUMPTION OF DENIAL FOR CON-
TROLLED
ENDUSERS.—Exports and reexports
to controlled endusers in controlled countries of
goods or technology on which controls are in ef-
fect under this section shall carry a presump-
tion of denial if such requirement is the policy
of the export control regime controlling the
goods or technology. In the negotiations re-
quired by subsection (d)(1), the Secretary shall
seek agreement on such a policy by every export
control regime.
(C) CASE-BY-CASE
REVIEW
FOR
OTHER
ENDUSERS.—Exports 
and 
reexports 
to
endusers, other than controlled endusers, in
controlled countries of goods or technology on
which controls are in effect under this section
shall be subject to case-by-case license review by
the Secretary and shall be submitted for multi-
lateral review if required by the export control
regime controlling the goods or technology.
(2) EXPORTS TO NON-REGIME COUNTRIES.—
(A) IN GENERAL.—Except as provided in
subsection (d)(5), the Secretary may, in his or
her discretion, require authority or permission
to export or reexport to endusers in non-regime
countries goods or technology on which controls
are in effect under this section if—
(i) such requirement is the policy of
the export control regime controlling the
goods or technology, for exports of such
goods and technology to non-regime coun-
tries; and
(ii) the Secretary has determined that
the unrestricted export of such goods or
technology to such non-regime country
would directly, substantially, and materi-
ally contribute to the military capability of
a controlled country or enduser described
in subsection (a)(1)(A), or to the capability
of a controlled country or enduser de-
scribed in subsection (a)(1)(B), through
the threat of diversion or other means.
(B) EXCEPTION.—Notwithstanding clause
(i) of subparagraph (A), for a period of 18
months beginning on the effective date of this
Act, the Secretary may require a license for the
export or reexport to any non-regime country of
any good or technology controlled under sub-
section (b)(2). During such period, the Sec-
retary shall engage in negotiations with other
members of the export control regime control-
ling the good or technology for the purpose of
developing a common list of controlled countries
and controlled endusers, and a common policy
on exports to non-regime countries. After the
end of such 18-month period, export controls on
such good or technology may be imposed only
under subparagraph (A) or under section 5.
(C) LICENSING TREATMENT.—(i) Exports
and reexports to non-regime countries of goods
and technology on which controls are in effect
under this section shall be considered on a na-
tional discretion basis.
(ii) Exports to endusers in non-regime
countries other than controlled endusers shall
carry a presumption of approval.
(iii) Exports to controlled endusers in non-
regime countries shall be reviewed on a case-by-
case basis and shall be submitted for multilat-
eral review if required by the export control re-
gime controlling the good or technology.
(iv) The Secretary shall pursue negotia-
tions with countries participating in export con-
trol regimes to achieve a consistent and effec-
tive multilateral approach to exports to non-re-
gime countries.
(D) NEGOTIATIONS
TO
ENHANCE
CO-
OPERATION.—The Secretary shall pursue nego-
tiations with non-regime countries regarding
their cooperation in restricting the export of
goods and technology consistent with the pur-
poses of those export control regimes controlling
such exports. The goal of such negotiations
shall be to produce agreements with such coun-
tries under which such countries impose export
restrictions consistent with the objectives set
forth in subsection (d)(1).
(E) REVIEW OF AGREEMENTS.—The Sec-
retary shall review annually any agreement
reached pursuant to subparagraph (D). If the
Secretary determines that a country is not ad-
hering to the terms of such an agreement with
the United States, the Secretary may restrict or
eliminate any preferential licensing treatment
for exports to that country provided under the
agreement and shall notify other members of
the appropriate export control regime of such
action.
(F) SANCTIONS.—If the Secretary deter-
mines that a non-regime country or an enduser
in a non-regime country is exporting to a con-
trolled country or controlled enduser goods or
technology on which controls are in effect under
this section, the Secretary may—
(i) suspend favorable licensing treat-
ment for such goods and technology to
such non-regime country or enduser in a
non-regime country;
(ii) propose to the other members of
the export control regime controlling the
goods or technology the suspension of fa-
vorable licensing treatment of the goods
and technology to such non-regime country
or enduser by all members of the regime;
and
(iii) consider applying United States
sanctions pursuant to section 8(d) to such
non-regime country or enduser.
(d) EXPORT CONTROL REGIMES
AND LICENSING
POLICIES.—
(1) IN GENERAL.—For the purposes of creating
effective multilateral export controls and strengthen-
ing the controls imposed by export control regimes,
the Secretary shall, with respect to each export con-
trol regime, pursue negotiations with other members
of such regime to accomplish the following objec-
tives:
(A) No license requirement for exports and
reexports among members of the regime and to
countries who are cooperating countries with re-
spect to the regime.
(B) Development of a common list of
goods and technology to which export controls
are applied, and a common list of countries and
endusers to which exports are controlled, by
members of the regime.
(C) Agreement on the same treatment, to
be applied by all members of the regime, of ex-
ports and reexports to members of the regime
cooperating countries, and non-regime coun-
tries, which could include multilateral review of
exports to controlled countries and controlled
endusers and multilateral sanctions to be ap-
plied to such countries and endusers, or to
members of the regime and cooperating coun-
tries who violate export controls imposed by the
regime.
(D) National procedures resulting in com-
parable implementation and enforcement of ex-
port controls among the members of the regime,
including laws providing appropriate civil and
criminal penalties and statutes of limitations
sufficient to deter potential violations.
(E) Periodic meetings of high-level rep-
resentatives of governments participating in the
regime for the purpose of coordinating national