IB
Union Calendar No. 212
107TH CONGRESS
2D SESSION
H. R. 2581
[Report No. 107–297, Parts I and II]
To provide authority to control exports, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JULY 20, 2001
Mr. GILMAN introduced the following bill; which was referred to the Com-
mittee on International Relations, and in addition to the Committee on
Rules, for a period to be subsequently determined by the Speaker, in each
case for consideration of such provisions as fall within the jurisdiction of
the committee concerned
NOVEMBER 16, 2001
Reported from the Committee on International Relations with an amendment
[Strike out all after the enacting clause and insert the part printed in italic]
NOVEMBER 16, 2001
Referral to the Committee on Rules extended for a period not later than
December 7, 2001
NOVEMBER 16, 2001
Referred to the Committees on Agriculture, Armed Services, Energy and Com-
merce, the Judiciary, Ways and Means, and the Permanent Select Com-
mittee on Intelligence for a period ending not later than December 7,
2001, for consideration of such provisions of the bill and amendment as
fall within the respective jurisdiction of those committees pursuant to
clauses 1 and 11 of rule X
DECEMBER 7, 2001
Referral to the Committees on Agriculture, Armed Services, Energy and Com-
merce, the Judiciary, Rules, Ways and Means, and the Permanent Select
Committee on Intelligence extended for a period ending not later than
December 15, 2001
DECEMBER 14, 2001
Referral to the Committees on Agriculture, Armed Services, Energy and Com-
merce, the Judiciary, Rules, Ways and Means, and the Permanent Select
Committee on Intelligence extended for a period ending not later than
February 28, 2002
FEBRUARY 28, 2002
Referral to the Committee on Agriculture, Armed Services, Energy and Com-
merce, Rules, the Judiciary, Ways and Means, and the Permanent Select
Committee on Intelligence extended for a period ending not later than
March 8, 2002
MARCH 8, 2002
Reported from the Committee on Armed Services with amendments
[Omit the part struck through in italic and insert the part printed in boldface roman]
MARCH 8, 2002
The Committees on Agriculture, Energy and Commerce, the Judiciary, Rules,
Ways and Means, and the Permanent Select Committee on Intelligence
discharged; committed to the Committee of the Whole House on the State
of the Union and ordered to be printed
[For text of introduced bill, see copy of bill as introduced on July 20, 2001]
A BILL
To provide authority to control exports, and for other
purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the ‘‘Ex-
port Administration Act of 2001’’.
(b) TABLE OF CONTENTS.—The table of contents of this
Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
TITLE I—GENERAL AUTHORITY
Sec. 101. Commerce Control List.
Sec. 102. Delegation of authority.
Sec. 103. Public information; consultation requirements.
Sec. 104. Right of export.
Sec. 105. Export control advisory committees.
Sec. 106. President’s Technology Export Council.
Sec. 107. Prohibition on charging fees.
TITLE II—NATIONAL SECURITY EXPORT CONTROLS
Subtitle A—Authority and Procedures
Sec. 201. Authority for national security export controls.
Sec. 202. National Security Control List.
Sec. 203. Country tiers.
Sec. 204. Incorporated parts and components.
Sec. 205. Petition process for modifying export status.
Sec. 206. Congressional review and report.
Subtitle B—Foreign Availability and Mass-Market Status
Sec. 211. Determination of foreign availability and mass-market status.
Sec. 212. Presidential set-aside of foreign availability status determination.
Sec. 213. Presidential set-aside of mass-market status determination.
Sec. 214. Office of Technology Evaluation.
Subtitle C—High Performance Computers
Sec. 221. Exports of high performance computing technology.
TITLE III—FOREIGN POLICY EXPORT CONTROLS
Sec. 301. Authority for foreign policy export controls.
Sec. 302. Procedures for imposing controls.
Sec. 303. Criteria for foreign policy export controls.
Sec. 304. Presidential report before imposition of control.
Sec. 305. Imposition of controls.
Sec. 306. Deferral authority.
Sec. 307. Review, renewal, and termination.
Sec. 308. Termination of controls under this title.
Sec. 309. Compliance with international obligations.
Sec. 310. Designation of countries supporting international terrorism.
Sec. 311. Crime control instruments.
Sec. 312. Measures to protect the public health.
Sec. 313. Promotion of safe environments.
TITLE IV—PROCEDURES FOR EXPORT LICENSES AND
INTERAGENCY DISPUTE RESOLUTION
Sec. 401. Export license procedures.
Sec. 402. Interagency dispute resolution process.
TITLE V—INTERNATIONAL ARRANGEMENTS; FOREIGN BOYCOTTS;
SANCTIONS; AND ENFORCEMENT
Sec. 501. International arrangements.
Sec. 502. Foreign boycotts.
Sec. 503. Penalties.
Sec. 504. Missile proliferation control violations.
Sec. 505. Chemical and biological weapons proliferation sanctions.
Sec. 506. Enforcement.
Sec. 507. Administrative procedure.
TITLE VI—EXPORT CONTROL AUTHORITY AND REGULATIONS
Sec. 601. Export control authority and regulations.
Sec. 602. Confidentiality of information.
TITLE VII—EXPORTS OF SATELLITES
Sec. 701. Applicability.
Sec. 702. Export controls on satellites and related items.
Sec. 703. Export license procedures.
Sec. 704. Mandatory State Department review.
Sec. 705. Definitions.
Sec. 706. Conforming amendments.
Sec. 707. Effective date.
Sec. 708. Effect on existing law.
TITLE VIII VII—MISCELLANEOUS PROVISIONS
Sec. 801 701. Annual report.
Sec. 802 702. Relationship to the Arms Export Control Act.
Sec. 803 703. Enhancement of congressional oversight of nuclear transfers to
North Korea.
Sec. 804 704. Procedures for consideration of joint resolutions.
Sec. 805 705. Recommendations of the Judicial Review Commission on Foreign
Asset Control.
Sec. 806 706. Improvements to the automated export system.
Sec. 807 707. Technical and conforming amendments.
Sec. 808 708. Savings provisions.
SEC. 2. DEFINITIONS.
Except as otherwise expressly provided, in this Act:
(1) AFFILIATE.—The term ‘‘affiliate’’ includes
both governmental entities and commercial entities
that are controlled in fact by the government of a
country.
(2) CONTROL OR CONTROLLED.—The terms ‘‘con-
trol’’ and ‘‘controlled’’ mean any requirement, condi-
tion, authorization, or prohibition on the export or
reexport of an item.
(3) CONTROL
LIST.—The term ‘‘Control List’’
means the Commerce Control List established under
section 101.
(4) CONTROLLED
COUNTRY.—The term ‘‘con-
trolled country’’ means a country with respect to
which exports are controlled under section 201 or 301.
(5) CONTROLLED
ITEM.—The term ‘‘controlled
item’’ means an item the export of which is controlled
under this Act.
(6) COUNTRY.—The term ‘‘country’’ means a
sovereign country or an autonomous customs terri-
tory.
(7) COUNTRY SUPPORTING INTERNATIONAL TER-
RORISM.—The 
term 
‘‘country 
supporting 
inter-
national terrorism’’ means a country designated by
the Secretary of State pursuant to section 310.
(8) DEPARTMENT.—The term ‘‘Department’’
means the Department of Commerce.
(9) EXPORT.—
(A) The term ‘‘export’’ means—
(i) an actual shipment, transfer, or
transmission of an item out of the United
States;
(ii) a transfer to any person of an item
either within the United States or outside of
the United States with the knowledge or in-
tent that the item will be shipped, trans-
ferred, or transmitted to an unauthorized
recipient outside the United States;
(iii) the release of technology to a for-
eign national within the United States; or
(iii) the release of an item to a
foreign national within or outside
of the United States;
(iv) a transfer of an item in the
United States to an embassy or affiliate of
a country, which shall be considered an ex-
port to that country.
(B) The term includes a reexport.
(10) FOREIGN AVAILABILITY STATUS.—The term
‘‘foreign availability status’’ means the status de-
scribed in section 211(d)(1).
(11) FOREIGN PERSON.—The term ‘‘foreign per-
son’’ means—
(A) an individual who is not—
(i) a United States citizen;
(ii) an alien lawfully admitted for per-
manent residence to the United States; or
(iii) a protected individual as defined
in section 274B(a)(3) of the Immigration
and 
Nationality 
Act. 
(8 
U.S.C.
1324b(a)(3));
(B) any corporation, partnership, business
association, society, trust, organization, or other
nongovernmental entity created or organized
under the laws of a foreign country or that has
its principal place of business outside the United
States; and
(C) any governmental entity of a foreign
country.
(12) ITEM.—
(A) IN GENERAL.—The term ‘‘item’’ means
any good, technology, or service.
(B) OTHER
DEFINITIONS.—In this para-
graph:
(i) GOOD.—The term ‘‘good’’ means
any article, natural or manmade substance,
material, supply or manufactured product,
including inspection and test equipment,
including source code, and excluding tech-
nical data.
(ii) TECHNOLOGY.—The term ‘‘tech-
nology’’ means specific information that is
necessary for the development, production,
or use of an item, and takes the form of
technical data or technical assistance.
(ii) 
TECHNOLOGY.—The 
term
‘‘technology’’ means specific infor-
mation, communicated by any
means tangible or intangible, that
is necessary for the design, devel-
opment, production, or use of an
item, including taking the form of
technical data or technical assist-
ance.
(iii) SERVICE.—The term ‘‘service’’
means any act of assistance, help, or aid.
(13) MASS-MARKET STATUS.—The term ‘‘mass-
market status’’ means the status described in section
211(d)(2).
(14) MULTILATERAL
EXPORT
CONTROL
RE-
GIME.—The term ‘‘multilateral export control regime’’
means an international agreement or arrangement
among two or more countries, including the United
States, a purpose of which is to coordinate national
export control policies of its members regarding cer-
tain items. The term includes regimes such as the
Australia Group, the Wassenaar Arrangement, the
Missile Technology Control Regime (MTCR), and the
Nuclear Suppliers’ Group Dual Use Arrangement.
(15) NATIONAL SECURITY CONTROL LIST.—The
term ‘‘National Security Control List’’ means the list
established under section 202(a).
(16) PERSON.—The term ‘‘person’’ includes—
(A) any individual, or any partnership,
corporation, business association, society, trust,
organization, or any other group created or or-
ganized under the laws of a country; and
(B) any government, or any governmental
entity, including any governmental entity oper-
ating as a business enterprise.
(17) REEXPORT.—The term ‘‘reexport’’ means
the shipment, transfer, transshipment, or diversion of
items from one foreign country to another.
(18) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Commerce.
(19) 
UNITED
STATES.—The 
term 
‘‘United
States’’ means the States of the United States, the
District of Columbia, and any commonwealth, terri-
tory, dependency, or possession of the United States,
and includes the outer Continental Shelf, as defined
in section 2(a) of the Outer Continental Shelf Lands
Act (42 U.S.C. 1331(a)).
(20) 
UNITED
STATES
PERSON.—The 
term
‘‘United States person’’ means—
(A) any United States citizen, resident, or
national (other than an individual resident out-
side the United States who is employed by a per-
son other than a United States person);
(B) any domestic concern (including any
permanent domestic establishment of any foreign
concern); and
(C) any foreign subsidiary or affiliate (in-
cluding any permanent foreign establishment) of
any domestic concern which is controlled in fact
by such domestic concern, as determined under
regulations prescribed by the President.
TITLE I—GENERAL AUTHORITY
SEC. 101. COMMERCE CONTROL LIST.
(a) IN GENERAL.—Under such conditions as the Sec-
retary may impose, consistent with the provisions of this
Act, the Secretary—
(1) shall establish and maintain a Commerce
Control List consisting of items the export of which
are subject to licensing or other authorization or re-
quirement; and
(2) may require any type of license, or other au-
thorization, including recordkeeping and reporting,
one basis parts that were in an item that was lawfully ex-
ported from the United States, unless—
(1) the Secretary determines that such license is
required to export such parts; or
(2) the after-market service or replacement parts
would materially enhance the capability of an item
which was the basis for the item being controlled.
(d) INCIDENTAL TECHNOLOGY.—A license or other au-
thorization to export an item under this Act includes au-
thorization to export technology related to the item, if the
level of the technology does not exceed the minimum nec-
essary to install, repair, maintain, inspect, operate, or use
the item.
SEC. 102. DELEGATION OF AUTHORITY.
(a) IN GENERAL.—Except as provided in subsection
(b) and subject to the provisions of this Act, the President
may delegate the power, authority, and discretion conferred
upon the President by this Act to such departments, agen-
cies, and officials of the Government as the President con-
siders appropriate.
(b) EXCEPTIONS.—
(1) DELEGATION TO APPOINTEES CONFIRMED BY
SENATE.—No authority delegated to the President
under this Act may be delegated by the President to,
or exercised by, any official of any department or
agency the head of which is not appointed by the
President, by and with the advice and consent of the
Senate.
(2) OTHER
LIMITATIONS.—The President may
not delegate or transfer the President’s power, author-
ity, or discretion to overrule or modify any rec-
ommendation or decision made by the Secretary, the
Secretary of Defense, or the Secretary of State under
this Act.
SEC. 103. PUBLIC INFORMATION; CONSULTATION REQUIRE-
MENTS.
(a) PUBLIC INFORMATION.—The Secretary shall keep
the public fully informed of changes in export control policy
and procedures instituted in conformity with this Act.
(b) CONSULTATION WITH PERSONS AFFECTED.—The
Secretary shall consult regularly with representatives of a
broad spectrum of enterprises, labor organizations, non-
proliferation and national security experts, and citizens in-
terested in or affected by export controls in order to obtain
their views on United States export control policy and the
foreign availability or mass-market status of controlled
items.
SEC. 104. RIGHT OF EXPORT.
No license or other authorization to export may be re-
quired under this Act, or under regulations issued under
this Act, except to carry out the provisions of this Act.
SEC. 105. EXPORT CONTROL ADVISORY COMMITTEES.
(a) APPOINTMENT.—Upon the Secretary’s own initia-
tive or upon the written request of representatives of a sub-
stantial segment of any industry which produces any items
subject to export controls under this Act or being considered
for such controls, the Secretary may appoint export control
advisory committees with respect to any such items. Each
such committee shall consist of representatives of United
States industry and Government officials, including offi-
cials from the Departments of Commerce, Defense, and
State, and other appropriate departments and agencies of
the Government. The Secretary shall permit the widest pos-
sible participation by the business community on the export
control advisory committees on the export control
advisory committees by nonproliferation and
national security experts, and by the business
community.
(b) FUNCTIONS.—
(1) IN GENERAL.—Export control advisory com-
mittees appointed under subsection (a) shall advise
and assist the Secretary, and any other department,
agency, or official of the Government carrying out
functions under this Act, on actions (including all as-
pects of controls imposed or proposed) designed to
carry out the provisions of this Act concerning the
items with respect to which such export control advi-
sory committees were appointed.
(2) OTHER CONSULTATIONS.—Nothing in para-
graph (1) shall prevent the United States Government
from consulting, at any time, with any person rep-
resenting an industry or the general public, regardless
of whether such person is a member of an export con-
trol advisory committee. Members of the public shall
be given a reasonable opportunity, pursuant to regu-
lations prescribed by the Secretary, to present infor-
mation to such committees.
(c) REIMBURSEMENT OF EXPENSES.—Upon the re-
quest of any member of any export control advisory com-
mittee appointed under subsection (a), the Secretary may,
if the Secretary determines it to be appropriate, reimburse
such member for travel, subsistence, and other necessary ex-
penses incurred by such member in connection with the du-
ties of such member.
(d) CHAIRPERSON.—Each export control advisory
committee appointed under subsection (a) shall elect a
chairperson, and shall meet at least every 3 months at the
call of the chairperson, unless the chairperson determines,
in consultation with the other members of the committee,
that such a meeting is not necessary to achieve the purposes
of this section. Each such committee shall be terminated
after a period of 2 years, unless extended by the Secretary
for additional periods of 2 years each. The Secretary shall
consult with each such committee on such termination or
extension of that committee.
(e) ACCESS TO INFORMATION.—To facilitate the work
of the export control advisory committees appointed under
subsection (a), the Secretary, in conjunction with other de-
partments and agencies participating in the administra-
tion of this Act, shall disclose to each such committee ade-
quate information, consistent with national security and
intelligence sources and methods, pertaining to the reasons
for the export controls which are in effect or contemplated
for the items or policies for which that committee furnishes
advice. Information provided by the export control advisory
committees shall not be subject to disclosure under section
552 of title 5, United States Code, and such information
shall not be published or disclosed unless the Secretary de-
termines that the withholding thereof is contrary to the na-
tional interest.
SEC. 106. PRESIDENT’S TECHNOLOGY EXPORT COUNCIL.
The President may establish a President’s Technology
Export Council to advise the President on the implementa-
tion, operation, and effectiveness of this Act.
SEC. 107. PROHIBITION ON CHARGING FEES.
No fee may be charged in connection with the submis-
sion or processing of an application for an export license
under this Act.
TITLE II—NATIONAL SECURITY
EXPORT CONTROLS
Subtitle A—Authority and
Procedures
SEC. 201. AUTHORITY FOR NATIONAL SECURITY EXPORT
CONTROLS.
(a) AUTHORITY.—
(1) IN GENERAL.—In order to carry out the pur-
poses set forth in subsection (b), the President may,
in accordance with the provisions of this Act, pro-
hibit, curtail, or require a license, or other authoriza-
tion for the export of any item subject to the jurisdic-
tion of the United States or exported by any person
subject to the jurisdiction of the United States. The
President may also require recordkeeping and report-
ing with respect to the export of such item.
(2) EXERCISE
OF
AUTHORITY.—The authority
contained in this subsection shall be exercised by the
States persons to, foreign programs intended to
develop weapons of mass destruction, missiles,
and other significant military capabilities, and
the means to design, test, develop, produce, stock-
pile, or use them; and
(C) implementing international treaties or
other agreements or arrangements concerning
controls on exports of designated items, reports
on the production, processing, consumption, and
exports and imports of such items, and compli-
ance with verification programs.
(3) To deter acts of international terrorism.
(3) To restrict the export of items that
could contribute to acts of international
terrorism so as to prove detrimental to
the national security of the United States,
its allies, or countries sharing common
strategic 
objectives 
with 
the 
United
States.
(c) END USE AND END USER CONTROLS.—
(1) GENERAL AUTHORITY.—(A) Notwithstanding
any other provision of this Act, controls may be im-
posed, based on the end use or end user, on the export
of any item, that could contribute to the proliferation
of weapons of mass destruction or the means to de-
liver them.
(B) The President shall seek to strengthen multi-
lateral cooperation to identify more effectively end
users of concern.
(C) The Secretary shall establish and maintain
a database listing end users of concern and develop
a procedure by which exporters can utilize such data-
base to screen prospective end users.
(2) PRESUMPTION OF DENIAL OF CERTAIN LI-
CENSES.—Notwithstanding any other provision of
this Act, there shall be a presumption of denial for the
export of an item if the Secretary, with the concur-
rence of the Secretary of Defense and the Secretary of
State, determines that there is a significant risk
that—
(A) the end user designated to receive such
item is involved in a program or activity for the
design, development, manufacture, stockpiling,
testing, or other acquisition of a weapon of mass
destruction or the means to deliver such a weap-
on and is in a country that is not an adherent
to a multilateral export control regime control-
ling such weapon or means of delivery, unless the
Secretary, with the concurrence of the Secretary
of Defense and the Secretary of State, and in
consultation with the intelligence agencies and
the head of any other department or agency of
the United States that the Secretary considers
appropriate, determines that such export would
not make a material contribution to such pro-
gram or activity; or
(B) the export of such item would otherwise
contribute to the military capabilities of a coun-
try so as to undermine regional stability or oth-
erwise prove detrimental to the national security
of the United States, a NATO ally, or major
non-NATO ally.
(3) DEFINITION.—For purposes of this sub-
section, an ‘‘adherent to a multilateral export control
regime’’ is—
(A) a country that is a member of a multi-
lateral export control regime;
(B) a country that, pursuant to an inter-
national understanding to which the United
States is a party, controls exports in accordance
with relevant criteria and standards of a multi-
lateral export control regime; or
(C) a major non-NATO ally that, pursuant
to its national legislation, controls exports in ac-
cordance with such criteria and standards.
(d) ENHANCED CONTROL.—
(1) IN
GENERAL.—Notwithstanding any other
provision of this title, the President may determine
that applying the provisions of section 204 or 211
with respect to an item on the National Security Con-
trol List could constitute a threat to the national se-
curity of the United States and that such item re-
quires enhanced control, including the requirement for
a license for such item. If the President determines
that enhanced control should apply to such item, the
item may be excluded from the provisions of sections
204 or 211, or both, until such time as the President
determines that enhanced control should no longer
apply to such item.
(2) CONTROL OF ITEMS.—Notwithstanding any
other provision of this Act, the President may identify
items to be included on the National Security Control
List, and any such item shall be included on that list.
(3) NONDELEGATION.—The President may not
delegate the authority provided under paragraphs (1)
and (2).
(4) REPORT TO CONGRESS.—The President shall
promptly report any determination described in
paragraph (1) or any items included on the National
Security Control List under paragraph (2), along
with the specific reasons for that determination or in-
clusion (as the case may be), to the Committee on
International Relations of the House of Representa-
tives and the Committee on Banking, Housing, and
Urban Affairs of the Senate.
(e) PRESUMPTION
OF
DENIAL
ON
CERTAIN
LI-
CENSES.—
(1) PRESUMPTION.—Notwithstanding any other
provision of law, when a license is required for export
to any country of any item on the National Security
Control List for any reason specified in subsection
(b), there shall be a presumption of denial for the ex-
port of such item if there is a significant risk that—
(A) such item would could contribute to
the nuclear, chemical, or biological weapons ca-
pabilities of such country or the capabilities of
such country to deliver such weapons;
(B) such item would could otherwise con-
tribute to the military capabilities of such coun-
try so as to undermine regional stability or oth-
erwise prove detrimental to the national security
of the United States, a NATO ally, or major
non-NATO ally;
(C) such item would could likely be used
or diverted to a use or destination not authorized
by the license or United States policy; or
(D) the export of such item would could
otherwise materially and adversely affect the na-
tional security interests of the United States.
(2) EXCEPTION.—Paragraph (1) shall not apply
to the export of an item to a country that is an ad-
herent to a multilateral export control regime control-
ling the export of such item.
(3) DEFINITION.—For purposes of this sub-
section, an ‘‘adherent to a multilateral export control
regime’’ is—
(A) a country that is a member of a multi-
lateral export control regime;
(B) a country that, pursuant to an inter-
national understanding to which the United
States is a party, controls exports in accordance
with relevant criteria and standards of a multi-
lateral export control regime; or
(C) a major non-NATO ally that, pursuant
to its national legislation, controls exports in ac-
cordance with such criteria and standards.
SEC. 202. NATIONAL SECURITY CONTROL LIST.
(a) ESTABLISHMENT OF LIST.—
(1) ESTABLISHMENT.—The Secretary shall estab-
lish and maintain a National Security Control List,
as part of the Control List.
(2) CONTENTS.—The National Security Control
List shall be composed of a list of items the export of
which is controlled for national security purposes
under this title.
(3) IDENTIFICATION OF ITEMS FOR NATIONAL SE-
CURITY CONTROL LIST.—The Secretary, with the con-
currence of the Secretary of Defense and the Secretary
of State and in consultation with the head of any
other department or agency of the United States that
the Secretary considers appropriate, shall identify the
items to be included on the National Security Control
List, except that the National Security Control List
shall, on the date of enactment of this Act, include all
of the items on the Commerce Control List controlled
on the day before the date of enactment of this Act to
protect the national security of the United States, to
prevent the proliferation of weapons of mass destruc-
tion and the means to deliver them, and to deter acts
of international terrorism. The Secretary shall review
on a continuing basis and, with the concurrence of
the Secretary of Defense and the Secretary of State
and in consultation with the head of any other de-
partment or agency of the United States that the Sec-
retary considers appropriate, adjust the National Se-
curity Control List to add items that require control
under this section and to remove items that no longer
warrant control under this section.
(4) MILITARILY CRITICAL TECHNOLOGIES
LIST.—
(A) 
ESTABLISHMENT.—The 
Sec-
retary of Defense shall establish and
maintain a Militarily Critical Tech-
nologies List, which shall be part of
the National Security Control List.
(B) 
CONTENTS.—The 
Militarily
Critical Technologies List shall be
composed of a list of items that are,
or could be, critical to the United
States military maintaining or ad-
vancing its qualitative advantage and
superiority relative to other countries
or potential adversaries.
(C) AUTHORITY OF THE SECRETARY
OF
DEFENSE.—Notwithstanding 
any
other provision of this Act, other than
section 201(d)(2), the Secretary of De-
fense shall have sole authority for
adding any item to or removing any
item from the Militarily Critical Tech-
nologies List, regardless of whether
that item is otherwise on the Control
List or otherwise controlled for ex-
port under this Act.
(D) LICENSING OF MILITARILY CRIT-
ICAL TECHNOLOGIES LIST ITEMS.—Items
listed on the Militarily Critical Tech-
nologies List shall not be approved
for export without the express con-
sent of the Secretary of Defense, un-
less the President determines other-
wise pursuant to section 402(b).
(E) 
ANNUAL
REPORT.—The 
Sec-
retary of Defense shall report annu-
ally to the Committee on Armed Serv-
ices of the House of Representatives
and the Committee on Armed Serv-
ices of the Senate on actions taken to
carry out this paragraph.
(b) RISK ASSESSMENT.—
(1) REQUIREMENT.—In establishing and main-
taining the National Security Control List as set
forth in paragraphs (1), (2), and (3) of
subsection (a), the risk factors set forth in para-
graph (2) shall be considered, weighing national secu-
rity concerns and economic costs.
(2) RISK FACTORS.—The risk factors referred to
in paragraph (1), with respect to each item, are as
follows:
(A) The characteristics of the item.
(B) The threat, if any, to the United States
or the national security interest of the United
States from the misuse or diversion of the item.
(C) The effectiveness of controlling the item
for national security purposes of the United
States, taking into account mass-market status,
foreign availability, and other relevant factors.
(D) The threat to the national security in-
terests of the United States if the item is not con-
trolled.
(E) Any other appropriate risk factors.
(c) REPORT ON CONTROL LIST.—Not later than 90
days after the date of enactment of this Act, the Secretary
shall submit a report to Congress which lists all items on
the Commerce Control List controlled on the day before the
date of enactment of this Act to protect the national security
of the United States, to prevent the proliferation of weapons
of mass destruction and the means to deliver them, and to
deter acts of international terrorism, not included on the
National Security Control List pursuant to the provisions
of this Act.
SEC. 203. COUNTRY TIERS.
(a) IN GENERAL.—
(1) ESTABLISHMENT AND ASSIGNMENT.—In ad-
ministering export controls for national security pur-
poses under this title, the President shall, not later
than 120 days after the date of enactment of this
Act—
(A) establish and maintain a country
tiering system in accordance with subsection (b);
and
(B) based on the assessments required under
subsection (c), assign each country to an appro-
priate tier for each item or group of items the
export of which is controlled for national secu-
rity purposes under this title.
(2) CONSULTATION.—The establishment and as-
signment of country tiers under this section shall be
made after consultation with the Secretary, the Sec-
retary of Defense, the Secretary of State, the intel-
ligence agencies, and the heads of such other depart-
ments and agencies as the President considers appro-
priate.
(3) REDETERMINATION AND REVIEW OF ASSIGN-
MENTS.—The President may redetermine the assign-
ment of a country to a particular tier at any time
and shall review and, as the President considers ap-
propriate, reassign country tiers on an on-going
basis. The Secretary shall provide notice of any such
reassignment to the Committee on Banking, Housing,
and Urban Affairs of the Senate and the Committee
on International Relations of the House of Represent-
atives.
(4) EFFECTIVE DATE OF TIER ASSIGNMENT.—
An assignment of a country to a particular tier shall
take effect on the date on which notice of the assign-
ment is published in the Federal Register.
(b) TIERS.—
(1) IN GENERAL.—The President shall establish
a country tiering system consisting of not less than
3 tiers for purposes of this section.
(2) RANGE.—Countries that represent the lowest
risk of diversion or misuse of an item on the National
Security Control List shall be assigned to the lowest
tier. Countries that represent the highest risk of diver-
sion or misuse of an item on the National Security
Control List shall be assigned to the highest tier.
(3) OTHER COUNTRIES.—Countries that fall be-
tween the lowest and highest risk to the national secu-
rity interest of the United States with respect to the
risk of diversion or misuse of an item on the National
Security Control List shall be assigned to a tier other
than the lowest or highest tier, based on the assess-
ments required under subsection (c).
(4) NONDELEGATION.—The President
may not delegate the authorities he has
under subsection (a) and this subsection.
(c) ASSESSMENTS.—The President shall make an as-
sessment of each country in assigning a country tier taking
into consideration risk factors that include the following:
(1) The present and potential relationship of the
country with the United States.
(2) The present and potential relationship of the
country with countries friendly to the United States
and with countries hostile to the United States.
(3) The country’s goals, capabilities, and inten-
tions regarding chemical, biological, and nuclear
weapons and the country’s membership in or adher-
ence to, and level of compliance with, relevant multi-
lateral export control regimes.
(4) The country’s capabilities regarding missile
systems and the country’s membership in or adher-
ence to, and level of compliance with, relevant multi-
lateral export control regimes.
(5) Whether the country, if a NATO or major
non-NATO ally with whom the United States has en-
tered into a free trade agreement as of January 1,
1986, controls exports in accordance with the criteria
and standards of a multilateral export control regime.
(6) The country’s other military capabilities and
the potential threat posed by the country to the
United States or its allies.
(7) The effectiveness of the country’s export con-
trol system.
(8) The level of the country’s cooperation with
United States export control enforcement and other ef-
forts.
(9) The risk of export diversion by the country
to a higher tier country.
(10) The designation of the country as a country
supporting international terrorism under section 310.
(11) The extent to which the country, pursuant
to its laws, regulations, and practices, controls items
consistent with the criteria and standards of relevant
multilateral export control regimes.
(d) TIER APPLICATION.—The country tiering system
shall be used in the determination of license requirements
pursuant to section 201(a)(1).
SEC. 204. INCORPORATED PARTS AND COMPONENTS.
(a) EXPORT
OF ITEMS CONTAINING CONTROLLED
PARTS AND COMPONENTS.—Controls may not be imposed
under this title or any other provision of law on an item
solely because the item contains parts or components subject
to export controls under this title, if the parts or
components—
(1) are essential to the functioning of the item,
(2) are customarily included in sales of the item
in countries other than controlled countries, and
(3) comprise 25 percent or less of the total value
of the item,
unless the item itself, if exported, would by virtue of the
functional characteristics of the item as a whole make a
significant contribution to the military or proliferation po-
tential of a controlled country or end user which would
prove detrimental to the national security of the United
States, or unless failure to control the item would be con-
trary to the provisions of section 201(c), section 201(d), or
section 309 of this Act.
(b) REEXPORTS
OF FOREIGN-MADE ITEMS INCOR-
PORATING UNITED STATES CONTROLLED CONTENT.—
(1) IN GENERAL.—No authority or permission
may be required under this title to reexport to a coun-
try an item that is produced in a country other than
the United States and incorporates parts or compo-
nents that are subject to the jurisdiction of the United
States, if the value of the controlled United States
content of the item produced in such other country is
25 percent or less of the total value of the item; except
that in the case of reexports of an item to a country
designated as a country supporting international ter-
rorism pursuant to section 310, controls may be
maintained if the value of the controlled United
States content is more than 10 percent of the total
value of the item.
(2) DEFINITION OF CONTROLLED UNITED STATES
CONTENT.—For purposes of this paragraph, the term
‘‘controlled United States content’’ of an item means
those parts or components that—
(A) are subject to the jurisdiction of the
United States;
(B) are incorporated into the item; and
(C) would, at the time of the reexport, re-
quire a license under this title if exported from
the United States to a country to which the item
is to be reexported.
SEC. 205. PETITION PROCESS FOR MODIFYING EXPORT STA-
TUS.
(a) ESTABLISHMENT.—The Secretary shall establish a
process for interested persons to petition the Secretary to
change the status of an item on the National Security Con-
trol List.
(b) EVALUATIONS
AND DETERMINATIONS.—Evalua-
tions and determinations with respect to a petition filed
pursuant to this section shall be made in accordance with
section 202.
SEC. 206. CONGRESSIONAL REVIEW AND REPORT.
(a) NOTIFICATION.—The Secretary shall in-
form the appropriate committees of Congress
at least 30 days before any change to the ex-
port status of an item on the National Secu-
rity Control List (other than the Military Crit-
ical Technologies List) is made.
(b) REPORT.—Upon the request of either
the chairman or ranking member of any of the
committees of Congress notified of a proposed
change under subsection (a), the Secretary
shall promptly provide to that committee a re-
port that contains a clearly stated description
of the proposed change, and the reasons why
the change is justified and necessary. The re-
port shall include in its entirety the assess-
ment of the Secretary of Defense under sub-
section (c). The report may be provided on a
classified basis if the Secretary considers it
necessary.
(c) ASSESSMENT.—The Secretary of De-
fense, in consultation with the Secretary of
State and the Director of Central Intelligence,
shall submit to the Secretary an assessment of
the following with respect to a proposed
change on which a report is requested under
subsection (b):
(1) The impact that the proposed
change will have on the national security
of the United States with respect to the
purposes of export controls set forth in
section 201(b).
(2) The impact the proposed change
will have on the United States Armed
Forces and the intelligence community.
(3) The cumulative effects that the
proposed change could have on the na-
tional security of the United States, as
well as the military potential, prolifera-
tion activities, and support for inter-
national terrorism by countries that may
receive the exported items with respect
to which the proposed change would
apply.
(d) APPROPRIATE COMMITTEES.—For pur-
poses of this section, the appropriate commit-
tees of Congress are the Committee on Armed
Services and the Committee on International
Relations of the House of Representatives,
and the Committee on Foreign Relations, the
Committee on Armed Services, and the Com-
mittee on Banking, Housing, and Urban Af-
fairs of the Senate.
Subtitle B—Foreign Availability
and Mass-Market Status
SEC. 211. DETERMINATION OF FOREIGN AVAILABILITY AND
MASS-MARKET STATUS.
(a) IN GENERAL.—The Secretary shall—
(1) on a continuing basis,
(2) upon a request from the Office of Technology
Evaluation established pursuant to section 214, or
(3) upon receipt of a petition filed by an inter-
ested person,
review and determine the foreign availability and the mass-
market status of any item the export of which is controlled
under this title.
criteria which the Secretary shall by regulation establish,
that an item described in subsection (a) has—
(1) a foreign availability status, or
(2) a mass-market status,
the Secretary shall notify the President (and other appro-
priate departments and agencies) and publish the notice of
the determination in the Federal Register. The Secretary’s
determination shall become final 30 days after the date the
notice is published, the item shall be removed from the Na-
tional Security Control List, and a license or other author-
ization shall not be required under this title with respect
to the item, unless the President makes a determination de-
scribed in section 212 or 213, or takes action under section
309, with respect to the item in that 30-day period.
(d) CRITERIA
FOR DETERMINING FOREIGN AVAIL-
ABILITY AND MASS-MARKET STATUS.—
(1) FOREIGN AVAILABILITY STATUS.—The Sec-
retary shall determine that an item has foreign avail-
ability status under this subtitle, if the item (or a
substantially identical or directly competitive item)—
(A) is available to controlled countries from
sources outside the United States, including
countries that participate with the United States
in multilateral export controls;
(B) can be acquired at a price that is not
excessive when compared to the price at which a
controlled country could acquire such item from
sources within the United States in the absence
of export controls; and
(C) is available in sufficient quantity so
that the requirement of a license or other author-
ization with respect to the export of such item is
or would be ineffective.
(1) FOREIGN AVAILABILITY STATUS.—An
item has foreign availability status under
this subtitle only if the item—
(A) 
is 
available 
to 
controlled
countries without restriction from
sources outside the United States,
more than one of which are countries
that 
participate 
with 
the 
United
States in multilateral export control
regimes as members; and
(B) is available in significant
quantity and comparable quality to
the item produced in the United
States so that the requirement of a li-
cense or other authorization with re-
spect to the export of the item is or
would be ineffective.
(2) MASS-MARKET STATUS.—
(A) IN GENERAL.—In determining whether
an item has mass-market status under this sub-
title, the Secretary shall consider the following
criteria with respect to the item (or a substan-
tially identical or directly competitive item):
(i) The production and availability for
sale in a large volume to multiple potential
purchasers.
(ii)
The
widespread
distribution
through normal commercial channels, such
as retail stores, direct marketing catalogues,
electronic commerce, and other channels.
(iii) The conduciveness to shipment
and delivery by generally accepted commer-
cial means of transport.
(iv) The use for the item’s normal in-
tended purpose without substantial and spe-
cialized service provided by the manufac-
turer, distributor, or other third party.
(B)
DETERMINATION
BY
SECRETARY.—If
the Secretary finds that the item (or a substan-
tially identical or directly competitive item)
meets the criteria set forth in subparagraph (A),
the Secretary shall determine that the item has
mass-market status.
(2) MASS-MARKET STATUS.—An item has
mass-market status under this subtitle
only if the following criteria are met:
(A) The item is produced in a
large volume and is available for sale
to multiple potential purchasers.
(B) The item is widely distributed
through normal commercial channels,
such as retail stores, direct marketing
catalogues, electronic commerce, and
other channels.
(C) The item is conducive to ship-
ment and delivery by generally ac-
cepted commercial means of trans-
port.
(D) The item can be used for its
normal 
intended 
purpose 
without
substantial and specialized service
provided by the manufacturer, dis-
tributor, or other third party.
(3)
SPECIAL
RULES.—For
purposes
of
this
subtitle—
(A) SUBSTANTIALLY IDENTICAL ITEM.—The
determination of whether an item in relation to
another item is a substantially identical item
shall include a fair assessment of end uses, and
the properties, nature, and quality of the item.
(B) DIRECTLY COMPETITIVE ITEM.—The de-
termination of whether an item in relation to
another item is a directly competitive item shall
include a fair assessment of whether the item, al-
though not substantially identical in its intrinsic
or
inherent
characteristics,
is
substantially
equivalent for commercial purposes and may be
adapted for substantially the same uses.
(C) EXCEPTION.—An item is not a directly
competitive item or a substantially identical
item in relation to a controlled item if the item
is not of comparable quality to the controlled
item with respect to characteristics that resulted
in the export of the item being controlled.
SEC. 212. PRESIDENTIAL SET-ASIDE OF FOREIGN AVAIL-
ABILITY STATUS DETERMINATION.
(a) CRITERIA FOR PRESIDENTIAL SET-ASIDE.—
(1) GENERAL CRITERIA.—
(A) IN GENERAL.—If the President deter-
mines that—
(i) decontrolling or failing to control
an item constitutes a threat to the national
security of the United States, and export
controls on the item would advance the na-
tional security interests of the United
States,
(ii) there is a high probability that the
foreign availability of an item will be elimi-
nated through international negotiations
within a reasonable period of time taking
into account the characteristics of the item,
or
(iii) United States controls on the item
have been imposed under section 309,
the President may set aside the Secretary’s deter-
mination of foreign availability status with re-
spect to the item.
(B) NONDELEGATION.—The President may
not delegate the authority provided for in this
paragraph.
(2) REPORT TO CONGRESS.—The President shall
promptly—
(A) report any set-aside determination de-
scribed in paragraph (1), along with the specific
reasons for the determination, to the Committee
on Banking, Housing, and Urban Affairs of the
Senate and the Committee on International Re-
lations of the House of Representatives; and
(B) publish the determination in the Fed-
eral Register.
(b) PRESIDENTIAL ACTION IN CASE OF SET-ASIDE.—
(1) IN GENERAL.—
(A) NEGOTIATIONS.—In any case in which
export controls are maintained on an item be-
cause the President has made a determination
under subsection (a), the President shall actively
pursue negotiations with the governments of the
appropriate foreign countries for the purpose of
eliminating such availability.
(B) REPORT TO CONGRESS.—Not later than
the date the President begins negotiations, the
President shall notify in writing the Committee
on Banking, Housing, and Urban Affairs of the
Senate and the Committee on International Re-
lations of the House of Representatives that the
President has begun such negotiations and why
the President believes it is important to the na-
tional security that export controls on the item
involved be maintained.
(2) PERIODIC REVIEW OF DETERMINATION.—The
President shall review a determination described in
subsection (a) at least every 6 months. Promptly after
each review is completed, the Secretary shall submit
to the committees of Congress referred to in para-
graph (1)(B) a report on the results of the review, to-
gether with the status of international negotiations to
eliminate the foreign availability of the item.
(3) EXPIRATION OF PRESIDENTIAL SET-ASIDE.—
A determination by the President described in sub-
section (a)(1)(A) (i) or (ii) shall cease to apply with
respect to an item on the earlier of—
(A) the date that is 6 months after the date
on which the determination is made under sub-
section (a), if the President has not commenced
international negotiations to eliminate the for-
eign availability of the item within that 6-month
period;
(B) the date on which the negotiations de-
scribed in paragraph (1) have terminated with-
out achieving an agreement to eliminate foreign
availability;
(C) the date on which the President deter-
mines that there is not a high probability of
eliminating foreign availability of the item
through negotiation; or
(D) the date that is 18 months after the
date on which the determination described in
subsection (a)(1)(A) (i) or (ii) is made if the
President has been unable to achieve an agree-
ment to eliminate foreign availability within
that 18-month period.
(4) ACTION ON EXPIRATION OF PRESIDENTIAL
SET-ASIDE.—Upon the expiration of a Presidential
set-aside under paragraph (3) with respect to an
item, the Secretary shall not require a license or other
authorization to export the item.
SEC. 213. PRESIDENTIAL SET-ASIDE OF MASS-MARKET STA-
TUS DETERMINATION.
(a) CRITERIA FOR PRESIDENTIAL SET-ASIDE.—
(1) GENERAL CRITERIA.—If the President deter-
mines that—
(A)(i) decontrolling or failing to control an
item constitutes a serious threat to the national
security of the United States, and
(ii) export controls on the item would ad-
vance the national security interests of the
United States, or
(B) United States controls on the item have
been imposed under section 309,
the President may set aside the Secretary’s deter-
mination of mass-market status with respect to the
item.
(2) NONDELEGATION.—The President may not
delegate the authority provided for in this subsection.
(b) PRESIDENTIAL ACTION IN CASE OF SET-ASIDE.—
(1) IN GENERAL.—In any case in which export
controls are maintained on an item because the Presi-
dent has made a determination under subsection (a),
the President shall promptly report the determina-
tion, along with the specific reasons for the deter-
mination, to the Committee on Banking, Housing,
and Urban Affairs of the Senate and the Committee
on International Relations of the House of Represent-
atives, and shall publish notice of the determination
in the Federal Register not later than 30 days after
the Secretary publishes notice of the Secretary’s deter-
mination that an item has mass-market status.
(2) PERIODIC REVIEW OF DETERMINATION.—The
President shall review a determination made under
subsection (a) at least every 6 months. Promptly after
each review is completed, the Secretary shall submit
a report on the results of the review to the Committee
on Banking, Housing, and Urban Affairs of the Sen-
ate and the Committee on International Relations of
the House of Representatives.
SEC. 214. OFFICE OF TECHNOLOGY EVALUATION.
(a) IN GENERAL.—
(1) ESTABLISHMENT OF OFFICE.—The Secretary
shall establish in the Department of Commerce an Of-
fice of Technology Evaluation (in this section referred
to as the ‘‘Office’’), which shall be under the direction
of the Secretary. The Office shall be responsible for
gathering, coordinating, and analyzing all the nec-
essary information in order for the Secretary to make
determinations of foreign availability and mass-mar-
ket status under this Act.
(2) STAFF.—
(A) IN GENERAL.—The Secretary shall en-
sure that the Office include persons to carry out
the responsibilities set forth in subsection (b) of
this section that have training, expertise, and ex-
perience in—
(i) economic analysis;
(ii) the defense industrial base;
(iii) technological developments; and
(iv) national security and foreign pol-
icy export controls.
(B) DETAILEES.—In addition to employees
of the Department of Commerce, the Secretary
may accept on nonreimbursable detail to the Of-
fice, employees of the Departments of Defense,
State, and Energy and other departments and
agencies as appropriate.
(b) RESPONSIBILITIES.—The Office shall be respon-
sible for—
(1) conducting foreign availability assessments
to determine whether a controlled item is available to
controlled countries and whether requiring a license,
or denial of a license for the export of such item, is
or would be ineffective;
(2) conducting mass-market assessments to deter-
mine whether a controlled item is available to con-
trolled countries because of the mass-market status of
the item;
(3) monitoring and evaluating worldwide techno-
logical developments in industry sectors critical to the
national security interests of the United States to de-
termine foreign availability and mass-market status
of controlled items;
(4) monitoring and evaluating multilateral ex-
port control regimes and foreign government export
include a description of determinations made under this
Act during the preceding fiscal year that foreign avail-
ability or mass-market status did or did not exist (as the
case may be), together with an explanation of the deter-
minations.
(d) SHARING OF INFORMATION.—Each department or
agency of the United States, including any intelligence
agency, and all contractors with any such department or
agency, shall, consistent with the need to protect intelligence
sources and methods, furnish information to the Office con-
cerning foreign availability and the mass-market status of
items subject to export controls under this Act.
Subtitle C—High Performance
Computers
SEC. 221. EXPORTS OF HIGH PERFORMANCE COMPUTING
TECHNOLOGY.
(a) JOINT PROCESS.—The Secretary, the
Secretary of State, the Secretary of Defense,
and the Secretary of Energy shall jointly de-
velop and implement a process that would
permit the United States to monitor effec-
tively the export of high performance com-
puting technology to countries of prolifera-
tion concern. Such a process shall include, at
a minimum, the following:
(1) A definition of high performance
computing technology and any associated
performance metrics.
(2) The ability to assess the proposed
export of high performance computing
technology prior to its export and pos-
sibly require a license for such export to
end users or end uses of concern.
(3) 
The 
use 
of 
post-shipment
verifications and other procedures to
monitor end uses and end users in order
to ensure that exports of high perform-
ance computing technology are not being
used by countries of proliferation con-
cern in a manner detrimental to the na-
tional security of the United States.
(b) REPORT TO CONGRESS.—The President
shall submit to the Congress, not later than
180 days after the date of the enactment of
this Act, a report describing the process de-
veloped under subsection (a).
(c) IMPLEMENTATION.—The process devel-
oped under subsection (a) shall first become
effective 60 days after the end of the 180-day
period described in subsection (b).
(d) REPEAL
OF
CERTAIN
EXPORT
CON-
TROLS.—Subtitle B of title XII of division A of
the National Defense Authorization Act for
Fiscal Year 1998 (50 U.S.C. App. 2404 note) is
repealed, effective 60 days after the end of the
180-day period described in subsection (b).
(e) INCLUSION
OF ITEMS
IN DEFINITION.—
The definition of ‘‘high performance com-
puting technology’’ under subsection (a)(1)
shall include computer hardware, software,
technical data, and source codes.
(f) END USE REVIEW.—
(1) NOTIFICATION.—Any United States
person that exports a computer with a
dollar value of over $250,000, or any
equivalent metric developed pursuant to
subsection (a), shall, not less than 10 days
before the item is exported, provide to
the Secretary a 1-page notification de-
scribed in paragraph (2) with respect to
the export.
(2) CONTENT.—A notification under
paragraph (1) with respect to a proposed
export shall include the following:
(A) A detailed description of the
item to be exported.
(B) Performance measures of the
item to be exported.
(C) The quantity and dollar value
of the item to be exported.
(D) The name, address, and tele-
phone number of the end user of the
exported item.
(E) The end uses of the exported
item.
(3) INTERAGENCY
REVIEW.—Within 24
hours after receiving a notification under
paragraph (1), the Secretary shall refer
the notification to the Director of Central
Intelligence (in this subsection referred
to as the ‘‘Director’’) and the Secretary of
Defense. The Director and the Secretary
of Defense shall review the notification to
determine whether the end user or any
end use of the item to be exported—
(A) could threaten the national se-
curity of the United States;
(B) could contribute to the pro-
liferation of weapons of mass destruc-
tion or the means to deliver them; or
(C) could assist foreign terrorist
organizations in performing acts of
international terrorism.
(4) 
DETERMINATION.—Within 
cal-
endar days after receiving a notification
under paragraph (3), the Director and the
Secretary of Defense shall inform the
Secretary of any determinations they
made under paragraph (3) with respect to
the notification. If the Director or the
Secretary of Defense determines that a
proposed export meets any of the criteria
set forth in subparagraphs (A), (B), and
(C) of paragraph (3), the Secretary shall
immediately so notify the United States
person exporting the item.
(5) REPORT.—The Secretary, with the
concurrence of the Secretary of Defense
and the Director, shall report annually to
the Congress on the implementation of
this subsection. The report shall contain
the number and type of determinations
made by the Director and the Secretary
of Defense under paragraph (3).
(6) EFFECTIVE DATE.—This subsection
shall take effect 90 days after the date of
the enactment of this Act.
TITLE III—FOREIGN POLICY
EXPORT CONTROLS
SEC. 301. AUTHORITY FOR FOREIGN POLICY EXPORT CON-
TROLS.
(a) AUTHORITY.—
(1) IN GENERAL.—In order to carry out the pur-
poses set forth in subsection (b), the President may,
in accordance with the provisions of this Act, pro-
hibit, curtail, or require a license, other authoriza-
tion, recordkeeping, or reporting for, the export of any
item subject to the jurisdiction of the United States
or exported by any person subject to the jurisdiction
of the United States.
(2) EXERCISE
OF
AUTHORITY.—The authority
contained in this subsection shall be exercised by the
Secretary, in consultation with the Secretary of State
and such other departments and agencies as the Sec-
retary considers appropriate.
(b) PURPOSES.—The purposes of foreign policy export
controls are the following:
(c) FOREIGN PRODUCTS.—No authority or permission
may be required under this title to reexport to a country
an item that is produced in a country other than the United
States and incorporates parts or components that are sub-
ject to the jurisdiction of the United States, except that in
the case of reexports of an item to a country designated
as a country supporting international terrorism pursuant
to section 310, controls may be maintained if the value of
the controlled United States content is more than 10 percent
of the value of the item.
(d) CONTRACT SANCTITY.—
(1) IN GENERAL.—The President may not pro-
hibit the export of any item under this title if that
item is to be exported—
(A) in performance of a binding contract,
agreement, or other contractual commitment en-
tered into before the earlier of the date on which
the President publishes in the Federal Register
pursuant to section 302(a) a notice of intent to
impose or implement an export control on that
item or the date on which the President reports
to Congress the President’s intention to impose
an export control on that item under this title;
or
(B) under a license or other authorization
issued under this Act before the earlier of the
date on which the export control is imposed, the
date on which the President publishes in the
Federal Register pursuant to section 302(a) a
notice of intent to impose or implement an ex-
port control on that item, or the date on which
the President reports to Congress the President’s
intention to impose an export control on that
item under this title.
(2) EXCEPTION.—The prohibition contained in
paragraph (1) shall not apply in any case in which
the President determines and certifies to the Com-
mittee on Banking, Housing, and Urban Affairs of
the Senate and the Committee on International Rela-
tions of the House of Representatives that—
(A) there is a serious threat to a foreign
policy interest of the United States;
(B) the prohibition of exports under each
binding contract, agreement, commitment, li-
cense, or authorization will be instrumental in
remedying the situation posing the serious
threat; and
(C) the export controls will be in effect only
as long as the serious threat exists.
SEC. 302. PROCEDURES FOR IMPOSING CONTROLS.
(a) NOTICE.—
(1) INTENT TO IMPOSE FOREIGN POLICY EXPORT
CONTROL.—Except as provided in section 306, not
later than 45 days before imposing or implementing
an export control under this title, the President shall
publish in the Federal Register—
(A) a notice of intent to do so; and
(B) provide for a period of not less than 30
days for any interested person to submit com-
ments on the export control proposed under this
title.
(2) PURPOSES OF NOTICE.—The purposes of the
notice are—
(A) to provide an opportunity for the for-
mulation of an effective export control policy
under this title that advances United States eco-
nomic and foreign policy interests; and
(B) to provide an opportunity for negotia-
tions to achieve the purposes set forth in section
301(b).
(b) NEGOTIATIONS.—During the 45-day period that
begins on the date of notice described in subsection (a), the
President may negotiate with the government of the foreign
country against which the export control is proposed in
order to resolve the reasons underlying the proposed export
control.
(c) CONSULTATION.—
(1) REQUIREMENT.—The President shall consult
with the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Inter-
national Relations of the House of Representatives re-
garding any export control proposed under this title
and the efforts to achieve or increase multilateral co-
operation on the issues or problems underlying the
proposed export control.
(2) CLASSIFIED CONSULTATION.—The consulta-
tions described in paragraph (1) may be conducted on
a classified basis if the Secretary considers it nec-
essary.
SEC. 303. CRITERIA FOR FOREIGN POLICY EXPORT CON-
TROLS.
Each export control imposed by the President under
this title shall—
(1) have clearly stated and specific United States
foreign policy objectives;
(2) have objective standards for evaluating the
success or failure of the export control;
(3) include an assessment by the President
that—
(A) the export control is likely to achieve
such objectives and the expected time for achiev-
ing the objectives; and
(B) the achievement of the objectives of the
export control outweighs any potential costs of
the export control to other United States eco-
nomic, foreign policy, humanitarian, or national
security interests;
(4) be targeted narrowly; and
(5) seek to minimize any adverse impact on the
humanitarian activities of United States and foreign
nongovernmental organizations in the country subject
to the export control.
SEC. 304. PRESIDENTIAL REPORT BEFORE IMPOSITION OF
CONTROL.
(a) REQUIREMENT.—Before imposing an export con-
trol under this title, the President shall submit to the Com-
mittee on Banking, Housing, and Urban Affairs of the Sen-
ate and the Committee on International Relations of the
House of Representatives a report on the proposed export
control. The report may be provided on a classified basis
if the Secretary considers it necessary.
(b) CONTENT.—The report shall contain a description
and assessment of each of the criteria described in section
303. In addition, the report shall contain a description and
assessment of—
(1) any diplomatic and other steps that the
United States has taken to accomplish the intended
objective of the proposed export control;
(2) unilateral export controls imposed, and other
measures taken, by other countries to achieve the in-
tended objective of the proposed export control;
(3) the likelihood of multilateral adoption of
comparable export controls;
(4) alternative measures to promote the same ob-
jectives and the likelihood of their potential success;
(5) any United States obligations under inter-
national trade agreements, treaties, or other inter-
national arrangements, with which the proposed ex-
port control may conflict;
(6) the likelihood that the proposed export con-
trol could lead to retaliation against United States
interests;
(7) the likely economic impact of the proposed
export control on the United States economy, United
States international trade and investment, and
United States agricultural interests, commercial in-
terests, and employment; and
(8) whether the objectives of the proposed export
control outweighs any likely costs to United States
economic, foreign policy, humanitarian, or national
security interests, including any potential harm to
the United States agricultural and business firms and
to the international reputation of the United States
as a reliable supplier of goods, services, or technology.
SEC. 305. IMPOSITION OF CONTROLS.
The President may impose an export control under
this title after the submission of the report required under
section 304 and publication in the Federal Register of a
notice of the imposition of the export control.
SEC. 306. DEFERRAL AUTHORITY.
(a) AUTHORITY.—The President may defer compliance
with any requirement contained in section 302(a), 304, or
305 in the case of a proposed export control if—
(1) the President determines that a deferral of
compliance with the requirement is in the national
interest of the United States; and
(2) the requirement is satisfied not later than 60
days after the date on which the export control is im-
posed under this title.
(b) TERMINATION OF CONTROL.—An export control
with respect to which a deferral has been made under sub-
section (a) shall terminate 60 days after the date the export
control is imposed unless all requirements have been satis-
fied before the expiration of that 60-day period.
SEC. 307. REVIEW, RENEWAL, AND TERMINATION.
(a) RENEWAL AND TERMINATION.—
(1) IN GENERAL.—Any export control imposed
under this title shall terminate on March 31 of each
renewal year unless the President renews the export
control on or before such date. For purposes of this
section, the term ‘‘renewal year’’ means 2003 and
every 2 years thereafter.
(2) EXCEPTION.—This section shall not apply to
an export control imposed under this title that—
(A) is required by law;
(B) is targeted against any country des-
ignated as a country supporting international
terrorism pursuant to section 310; or
(C) has been in effect for less than 1 year
as of February 1 of a renewal year.
(b) REVIEW.—
(1) IN GENERAL.—Not later than February 1 of
each renewal year, the President shall review all ex-
port controls in effect under this title.
(2) CONSULTATION.—
(A) REQUIREMENT.—Before completing a
review under paragraph (1), the President shall
consult with the Committee on Banking, Hous-
ing, and Urban Affairs of the Senate and the
Committee on International Relations of the
House of Representative regarding each export
control that is being reviewed.
(B) CLASSIFIED CONSULTATION.—The con-
sultations may be conducted on a classified basis
if the Secretary considers it necessary.
(3) PUBLIC COMMENT.—In conducting the review
of each export control under paragraph (1), the Presi-
dent shall provide a period of not less than 30 days
for any interested person to submit comments on re-
newal of the export control. The President shall pub-
lish notice of the opportunity for public comment in
the Federal Register not less than 45 days before the
review is required to be completed.
(c) REPORT TO CONGRESS.—
(1) REQUIREMENT.—Before renewing an export
control imposed under this title, the President shall
submit to the committees of Congress referred to in
subsection (b)(2)(A) a report on each export control
that the President intends to renew.
(2) FORM AND CONTENT OF REPORT.—The re-
port may be provided on a classified basis if the Sec-
retary considers it necessary. Each report shall con-
tain the following:
(A) A clearly stated explanation of the spe-
cific United States foreign policy objective that
the existing export control was intended to
achieve.
(B) An assessment of—
(i) the extent to which the existing ex-
port control achieved its objectives before re-
newal based on the objective criteria estab-
lished for evaluating the export control; and
(ii) the reasons why the existing export
control has failed to fully achieve its objec-
tives and, if renewed, how the export control
will achieve that objective before the next re-
newal year.
(C) An updated description and assessment
of—
(i) each of the criteria described in sec-
tion 303, and
(ii) each matter required to be reported
under section 304(b) (1) through (8).
(3) RENEWAL OF EXPORT CONTROL.—The Presi-
dent may renew an export control under this title
after submission of the report described in paragraph
(2) and publication of notice of renewal in the Fed-
eral Register.
SEC. 308. TERMINATION OF CONTROLS UNDER THIS TITLE.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, the President—
(1) shall terminate any export control imposed
under this title if the President determines that the
control has substantially achieved the objective for
which it was imposed; and
(2) may terminate at any time any export con-
trol imposed under this title that is not required by
law.
(b) EXCEPTION.—Paragraphs (1) and (2) of subsection
(a) do not apply to any export control imposed pursuant
to section 310.
(c) EFFECTIVE DATE OF TERMINATION.—The termi-
nation of an export control pursuant to this section shall
take effect 30 days after the President has consulted with
the Committee on International Relations of the House of
Representatives and the Committee on Foreign Relations of
the Senate on the foreign policy implications of such termi-
nation. Notice of the termination shall be published in the
Federal Register.
SEC. 309. COMPLIANCE WITH INTERNATIONAL OBLIGA-
TIONS.
Notwithstanding any other provision of this Act set-
ting forth limitations on authority to control exports and
except as provided in section 304, the President may, the
President shall impose controls on exports to a par-
ticular country or countries—
(1) of items listed on the control list of a multi-
lateral export control regime; or
(2) in order to fulfill obligations or commitments
of the United States under resolutions of the United
Nations and under treaties, or other international
agreements and arrangements, to which the United
States is a party.
SEC. 
310. 
DESIGNATION 
OF 
COUNTRIES 
SUPPORTING
INTERNATIONAL TERRORISM.
(a) LICENSE REQUIRED.—Notwithstanding any other
provision of this Act setting forth limitations on the author-
ity to control exports, a license shall be required for the
export of any item to a country if the Secretary of State
has determined that—
(1) that the government of such country has re-
peatedly provided support for acts of international
terrorism; and
(2) in consultation with the Secretary
of Defense, that the export of the item could make
a significant contribution to the military potential of
such country, including its military logistics capa-
bility, or could enhance the ability of such country
to support acts of international terrorism.
(b) NOTIFICATION.—The Secretary and the Secretary
of State shall notify the Committee on International Rela-
tions of the House of Representatives and the Committee
on Banking, Housing, and Urban Affairs and the Com-
mittee on Foreign Relations of the Senate at least 30 days
before issuing any license required by subsection (a).
(c) DETERMINATIONS REGARDING REPEATED SUP-
PORT.—Each determination of the Secretary of State under
subsection (a)(1), including each determination in effect on
the date of the enactment of the Antiterrorism and Arms
Export Amendments Act of 1989, shall be published in the
Federal Register.
(d) LIMITATIONS ON RESCINDING DETERMINATION.—
A determination made by the Secretary of State under sub-
section (a)(1) may not be rescinded unless the President
submits to the Speaker of the House of Representatives and
the Chairman of the Committee on Banking, Housing, and
Urban Affairs and the Chairman of the Committee on For-
eign Relations of the Senate—
(1) before the proposed rescission would take ef-
fect, a report certifying that—
(A) there has been a fundamental change in
the leadership and policies of the government of
the country concerned;
(B) that government is not supporting acts
of international terrorism; and
(C) that government has provided assur-
ances that it will not support acts of inter-
national terrorism in the future; or
(2) at least 45 days before the proposed rescission
would take effect, a report justifying the rescission
and certifying that—
(A) the government concerned has not pro-
vided any support for international terrorism
during the preceding 6-month period; and
(B) the government concerned has provided
assurances that it will not support acts of inter-
national terrorism in the future.
(e) INFORMATION TO BE INCLUDED
IN NOTIFICA-
TION.—The Secretary and the Secretary of State shall in-
clude in the notification required by subsection (b)—
(1) a detailed description of the item to be of-
fered, including a brief description of the capabilities
of any item for which a license to export is sought;
(2) the reasons why the foreign country or inter-
national organization to which the export or transfer
is proposed to be made needs the item which is the
subject of such export or transfer and a description of
the manner in which such country or organization
intends to use the item;
(3) the reasons why the proposed export or trans-
fer is in the national interest of the United States;
(4) an analysis of the impact of the proposed ex-
port or transfer on the military capabilities of the
foreign country or international organization to
which such export or transfer would be made;
(5) an analysis of the manner in which the pro-
posed export would affect the relative military
strengths of countries in the region to which the item
which is the subject of such export would be delivered
and whether other countries in the region have com-
parable kinds and amounts of the item; and
(6) an analysis of the impact of the proposed ex-
port or transfer on the United States relations with
the countries in the region to which the item which
is the subject of such export would be delivered.
SEC. 311. CRIME CONTROL INSTRUMENTS.
(a) IN GENERAL.—Crime control and detection instru-
ments and equipment shall not be approved for export by
the Secretary except pursuant to an individual export li-
cense.
struments or equipment proposed for export has not
been engaged in acts of torture.
(2) LIST.—The Secretary shall establish and
maintain a list of crime control and detection instru-
ments and equipment especially susceptible to abuse
as implements of torture for purposes of paragraph
(1), and shall publish such list in the Federal Reg-
ister.
(d) EXCEPTION.—Subsection (a) shall not apply to ex-
ports to countries that are NATO or are major non-NATO
allies.
(e) PROHIBITION.—Notwithstanding any other provi-
sion of this section, including subsection (d), the export to
any country of leg irons, saps, blackjacks, electroshock stun
belts, thumb cuffs, and items specially designed as imple-
ments of torture, as determined by the Secretary, including
components produced for incorporation into these items and
the technology used for the development or production of
these items, shall be prohibited.
(f) DEFINITION.—For purposes of this section, the term
‘‘acts of torture’’ means acts committed by a person acting
under the color of law that are specifically intended to in-
flict severe physical or mental pain or suffering (other than
pain or suffering incidental to lawful sanctions) upon an-
other person within the custody or physical control of the
person performing the acts.
SEC. 312. MEASURES TO PROTECT THE PUBLIC HEALTH.
(a) IN GENERAL.—In order to carry out the policy set
forth in paragraph (4) of section 301(b), test articles in-
tended for clinical investigations shall be approved for ex-
port by the President only pursuant to an export license.
(b) CRITERIA FOR EXPORT LICENSE.—In addition to
the criteria set forth in paragraph (4) of section 401(a),
the President shall require, as a prerequisite for approval
of an export license for a test article required by subsection
(a) of this section, that an applicant for such license—
(1) identify each clinical investigation for which
the test article is intended; and
(2) submit proof that each of the protocols for
every clinical investigation identified under para-
graph (1) has been reviewed by an institutional re-
view board and met the same standards for the pro-
tection of the rights and welfare of human subjects as
would be required for IRB approval of the protocol if
the protocol were for a clinical investigation of such
test article pursuant to the Federal Food, Drug, and
Cosmetic Act.
(c) REPORTING REQUIREMENT.—Not later than one
year after the date of enactment of this Act, and annually
thereafter, the President shall prepare and submit to the
appropriate congressional committees a report regarding
the approval of export licenses as required by subsection (a).
Such report shall include—
(1) the names of the applicants for such export
licenses;
(2) the names of approved applicants for such
export licenses; and
(3) the destination country or countries for each
application for such export licenses.
(d) EXCEPTION.—The provisions of this section shall
not apply if the destination country is a full member of
the Europen Union, a full member of the European Free
Trade Association, Canada, Japan, Australia, Israel, or
New Zealand.
(e) DEFINITIONS.—In this section:
(1) APPLICATION FOR RESEARCH OR MARKETING
PERMIT.—The term ‘‘application for research or mar-
keting permit’’ has the meaning given that term in
section 56.102(b) of title 21, Code of Federal Regula-
tions, or successor regulations.
(2) 
APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional commit-
tees’’ means the Committee on International Relations
of the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate.
(3) CLINICAL INVESTIGATION.—The term ‘‘clin-
ical investigation’’ means any experiment that in-
volves a test article and one or more human subjects,
and that either must meet the requirements for prior
submission to the Food and Drug Administration
under section 505(i), 507(d), or 520(g) of the Federal
Food, Drug, and Cosmetic Act (21 U.S.C. 355(i),
357(d), or 360j(g)), or need not meet the requirements
for prior submission to the Food and Drug Adminis-
tration under those sections, but the results of which
are intended to be later submitted to, or held for in-
spection by, the Food and Drug Administration as
part of an application for a research or marketing
permit. The term does not include experiments that
must meet the provisions of part 58 of title 21, Code
of Federal Regulations, or successor regulations, re-
garding nonclinical laboratory studies.
(4) DESTINATION COUNTRY.—The term ‘‘destina-
tion country’’ means the country into which test arti-
cles are being exported.
(5) HUMAN SUBJECT.—The term ‘‘human sub-
ject’’ means an individual who is or becomes a partic-
ipant in research, either as a recipient of the test ar-
ticle or as a control. A subject may be either a healthy
individual or a patient.
(6) INSTITUTION.—The term ‘‘institution’’ means
any public or private entity or agency (including
Federal, State, and other agencies), either in the
United States or other country.
(7) INSTITUTIONAL
REVIEW
BOARD; IRB.—The
terms ‘‘institutional review board’’ and ‘‘IRB’’ mean
any board, committee, or other group formally des-
ignated by an institution to review, to approve the
initiation of, and to conduct periodic review of, bio-
medical research involving human subjects. The pri-
mary purpose of such review is to assure the protec-
tion of the rights and welfare of the human subjects.
(8) IRB APPROVAL.—The term ‘‘IRB approval’’
means the determination of an IRB made pursuant
to part 56 of title 21, Code of Federal Regulations, or
successor regulations, that a clinical investigation has
been reviewed and may be conducted at an institution
within the constraints set forth by the IRB and by
other institutional and Federal requirements.
(9) TEST
ARTICLE.—The term ‘‘test article’’
means any drug for human use, biological product for
human use, medical device for human use, human
food additive, color additive, electronic product, or
any other article that would be subject to regulation
under the Federal Food, Drug, and Cosmetic Act if
introduced into interstate commerce.
SEC. 313. PROMOTION OF SAFE ENVIRONMENTS.
(a) IN GENERAL.—In order to carry out the policy set
forth in paragraph (5) of section 301(b), the President may
prohibit the exportation of pesticides or chemicals that the
President deems to be a risk to the public health, safety,
or environment of the United States or any other country.
(b) REPORT ON EXPORTS.—
(1) REPORT.—The President shall, by not later
than 6 months after the date of enactment of this
Act—
(A) identify all United States persons who
export any hazardous pesticide or chemical that
is—
(i) included in the Convention on the
Prior Informed Consent Procedure for Cer-
tain Hazardous Chemicals and Pesticides
in International Trade, or the Convention
on Persistent Organic Pollutants; or
(ii) either banned, severely restricted,
highly regulated, or never regulated for use
in the United States;
(B) determine the quantities of each haz-
ardous pesticide and chemical described in sub-
paragraph (A) that each United States person
has exported in the 2-year period preceding the
date of enactment of this Act; and
(C) submit to the Committee on Inter-
national Relations of the House of Representa-
tives and to the Committee on Banking, Hous-
ing, and Urban Affairs and the Committee on
Foreign Relations of the Senate a comprehensive
report on the information described in subpara-
graphs (A) and (B).
(2) REGULATORY AND ADMINISTRATIVE FRAME-
WORKS.—The President shall include in the report
under paragraph (1) a detailed description, done in
consultation with appropriate departments and agen-
cies, of the regulatory and administrative frameworks
in the United States for measuring, monitoring, and
controlling the export of the pesticides and chemicals
described in paragraph (1), and any recommenda-
tions the President has on how such frameworks could
be improved as methods for controlling the export of
those substances.
(c) GAO REPORT.—The Comptroller General of the
United States, in consultation with the National Academy
of Sciences and such other departments and agencies as the
Comptroller General considers appropriate, shall, by not
later than 1 year after the date of the enactment of this
Act—
(1) examine the regulatory and administrative
frameworks in the United States for measuring, mon-
itoring, and controlling the exportation of the pes-
ticides and chemicals described in subsection (b), and
determine the efficiency and effectiveness of those
frameworks;
(2) compare the United States regulatory and
administrative frameworks under paragraph (1) with
those of the other member countries of the Organiza-
tion for Economic Cooperation and Development, and
provide recommendations concerning any elements of
the frameworks of those countries that might be ap-
plied to the United States frameworks to help improve
their efficiency and effectiveness;
(3) compare the quantities of each of the sub-
stances described in paragraph (1) which have been
exported by the United States and all other member
countries of the Organization for Economic Coopera-
tion and Development during the 2-year period pre-
ceding the date of enactment of this Act;
(4) evaluate the adequacy of current statutory
and regulatory authority, as well as appropriations,
for measuring, monitoring, and controlling the export
of those substances and suggest improvements for en-
suring better measuring, monitoring, and control of
those exports; and
(5) submit to the Committee on International
Relations of the House of Representatives and to the
Committee on Banking, Housing, and Urban Affairs
and the Committee on Foreign Relations of the Senate
a report on the findings under paragraphs (1)
through (4).
TITLE IV—PROCEDURES FOR EX-
PORT LICENSES AND INTER-
AGENCY 
DISPUTE 
RESOLU-
TION
SEC. 401. EXPORT LICENSE PROCEDURES.
(a) RESPONSIBILITY OF THE SECRETARY.—
(1) IN GENERAL.—All applications for a license
or other authorization to export a controlled item
shall be filed in such manner and include such infor-
mation as the Secretary may, by regulation, pre-
scribe.
(2) PROCEDURES.—In guidance and regulations
that implement this section, the Secretary shall de-
scribe the procedures required by this section, the re-
sponsibilities of the Secretary and of other depart-
ments and agencies in reviewing applications, the
rights of the applicant, and other relevant matters af-
fecting the review of license applications.
(3) CALCULATION
OF
PROCESSING
TIMES.—In
calculating the processing times set forth in this title,
the Secretary shall use calendar days, except that if
the final day for a required action falls on a weekend
or holiday, that action shall be taken no later than
the following business day.
(4) CRITERIA FOR EVALUATING APPLICATIONS.—
In determining whether to grant an application to ex-
port a controlled item under this Act, the following
criteria shall be considered:
(A) The characteristics of the controlled
item.
(B) The threat to—
(i) the national security interests of the
United States from items controlled under
title II of this Act; or
(ii) the foreign policy of the United
States from items controlled under title III
of this Act.
(C) The country tier designation of the
country to which a controlled item is to be ex-
ported pursuant to section 203.
(D) The risk of export diversion or misuse
by—
(i) the exporter;
(ii) the method of export;
(iii) the end user;
(iv) the country where the end user is
located; and
(v) the end use.
(E) Risk mitigating factors including, but
not limited to—
(i) changing the characteristics of the
controlled item;
(ii) after-market monitoring by the ex-
porter; and
(iii) post-shipment verification.
(b) INITIAL SCREENING.—
(1) UPON RECEIPT OF APPLICATION.—Upon re-
ceipt of an export license application, the Secretary
shall enter and maintain in the records of the Depart-
ment information regarding the receipt and status of
the application.
(2) INITIAL PROCEDURES.—
(A) IN GENERAL.—Not later than 9 days
after receiving any license application, the Sec-
retary shall—
(i) contact the applicant if the applica-
tion is improperly completed or if addi-
tional information is required, and hold the
application for a reasonable time while the
applicant provides the necessary corrections
or information, and such time shall not be
included in calculating the time periods
prescribed in this title; and
(ii) upon receipt of a completed
application—
(I) ensure that the classification
state on the application for the export
items is correct, and, if so, refer the
application, through the use of a com-
mon data base or other means, and all
information submitted by the appli-
cant, and all necessary recommenda-
tions and analyses by the Secretary, to
the Secretary of Defense, the Secretary
of State, and the heads of and other de-
partments and agencies the Secretary
considers appropriate; or
(II) return the application if a li-
cense is not required.
(B) REFERRAL
NOT
REQUIRED.—In the
event that the head of a department or agency
determines that certain types of applications
need not be referred to the department or agency,
such department or agency head shall notify the
Secretary of the specific types of such applica-
tions that the department or agency does not
wish to review.
(3) WITHDRAWAL OF APPLICATION.—An appli-
cant may, by written notice to the Secretary, with-
draw an application at any time before final action.
(c) ACTION
BY OTHER DEPARTMENTS
AND AGEN-
CIES.—
(1) REFERRAL TO OTHER AGENCIES.—The Sec-
retary shall promptly refer a license application to
the departments and agencies under subsection (b) to
make recommendations and provide information to
the Secretary.
(2) RESPONSIBILITY
OF
REFERRAL
DEPART-
MENTS AND AGENCIES.—The Secretary of Defense, the
Secretary of State, and the heads of other reviewing
departments and agencies shall take all necessary ac-
tions on an application in a prompt and responsible
manner. Each department or agency reviewing an
application under this section shall establish and
maintain records properly identifying and moni-
toring the status of the matter referred to the depart-
ment or agency.
(3) ADDITIONAL
INFORMATION
REQUESTS.—
Each department or agency to which a license appli-
cation is referred shall specify to the Secretary any
information that is not in the application that would
be required for the department or agency to make a
determination with respect to the application, and the
Secretary shall promptly request such information
from the applicant. The time that may elapse between
the date the information is requested by that depart-
ment or agency and the date the information is re-
ceived by that department or agency shall not be in-
cluded in calculating the time periods prescribed in
this title.
(4) TIME PERIOD FOR ACTION BY REFERRAL DE-
PARTMENTS AND AGENCIES.—Within 30 days after
the Secretary refers an application under this section,
each department or agency to which an application
has been referred shall provide the Secretary with a
recommendation either to approve the license or to
deny the license. A recommendation that the Sec-
retary deny a license shall include a statement of rea-
sons for the recommendation that are consistent with
the provisions of this title, and shall cite both the spe-
cific statutory and regulatory basis for the rec-
ommendation. A department or agency that fails to
provide a recommendation in accordance with this
paragraph within that 30-day period shall be deemed
to have no objection to the decision of the Secretary
on the application.
(d) ACTION BY THE SECRETARY.—Not later than 30
days after the date the application is referred, the Secretary
shall—
(1) if there is agreement among the departments
and agencies to which the application has been re-
ferred under subsection (c) to issue or deny the
license—
(A) issue the license and ensure all appro-
priate personnel in the Department (including
the Office of Export Enforcement) are notified of
all approved license applications; or
(B) notify the applicant of the intention to
deny the license; or
(2) if there is no agreement among such depart-
ments and agencies, notify the applicant that the ap-
plication is subject to the interagency dispute resolu-
tion process provided for in section 402.
(e) CONSEQUENCES OF APPLICATION DENIAL.—
(1) IN GENERAL.—If a determination is made to
deny a license, the Secretary shall inform the appli-
cant in writing, consistent with the protection of in-
telligence information sources and methods, of—
(A) the determination;
(B) the specific statutory and regulatory
bases for the proposed denial;
(C) what, if any, modifications to, or re-
strictions on, the items for which the license was
sought would allow such export to be compatible
with export controls imposed under this Act, and
which officer or employee of the Department
would be in a position to discuss modifications
or restrictions with the applicant and the spe-
cific statutory and regulatory bases for imposing
such modifications or restrictions;
(D) to the extent consistent with the na-
tional security and foreign policy interests of the
United States, the specific considerations that led
to the determination to deny the application;
and
(E) the availability of appeal procedures.
(2) PERIOD FOR APPLICANT TO RESPOND.—The
applicant shall have 20 days from the date of the no-
tice of intent to deny the application to respond in
a manner that addresses and corrects the reasons for
the denial. If the applicant does not adequately ad-
dress or correct the reasons for denial or does not re-
spond, the license shall be denied. If the applicant
does address or correct the reasons for denial, the ap-
plication shall be considered in a timely manner.
(f) APPEALS AND OTHER ACTIONS BY APPLICANT.—
(1) IN GENERAL.—The Secretary shall establish
appropriate procedures for an applicant to appeal to
the Secretary the denial of an application or other
administrative action under this Act. In any case in
which the Secretary proposes to reverse the decision
with respect to the application, the appeal under this
subsection shall be handled in accordance with the
interagency dispute resolution process provided for in
section 402(b)(3).
(2) ENFORCEMENT OF TIME LIMITS.—
(A) IN GENERAL.—In any case in which an
action prescribed in this section is not taken on
an application within the time period estab-
lished by this section (except in the case of a
time period extended under subsection (g) of
which the applicant is notified), the applicant
may file a petition with the Secretary requesting
compliance with the requirements of this section.
When such petition is filed, the Secretary shall
take immediate steps to correct the situation giv-
ing rise to the petition and shall immediately
notify the applicant of such steps.
(B) BRINGING COURT ACTION.—If, within
20 days after a petition is filed under subpara-
graph (A), the processing of the application has
not been brought into conformity with the re-
quirements of this section, or the processing of
the application has been brought into conformity
with such requirements but the Secretary has not
so notified the applicant, the applicant may
bring an action in an appropriate United States
district court for an order requiring compliance
with the time periods required by this section.
(g) EXCEPTIONS FROM REQUIRED TIME PERIODS.—
The following actions related to processing an application
shall not be included in calculating the time periods pre-
scribed in this section:
(1) AGREEMENT
OF
THE
APPLICANT; 
COM-
PLEXITY
OF
ANALYSIS; 
NATIONAL
SECURITY
IM-
PACT.—
(A) AGREEMENT
OF
THE
APPLICANT.—
Delays upon which the Secretary and the appli-
cant mutually agree.
(B) COMPLEXITY OF ANALYSIS.—A review-
ing department or agency requires more time
due to the complexity of the analysis, if the addi-
tional time is not more than 60 days.
(C) NATIONAL
SECURITY
IMPACT.—A re-
viewing department or agency requires addi-
tional time because of the potential impact on
the national security or foreign policy interests
of the United States, if the additional time is not
more than 60 days.
(2) PRELICENSE
CHECKS.—A prelicense check
(for a period not to exceed 60 days) that may be re-
quired to establish the identity and reliability of the
recipient of items controlled under this Act, if—
(A) the need for the prelicense check is de-
termined by the Secretary or by another depart-
ment or agency in any case in which the request
for the prelicense check is made by such depart-
ment or agency;
(B) the request for the prelicense check is
initiated by the Secretary within 5 days after
calculating the time periods established by this sec-
tion.
(5) MULTILATERAL
REVIEW.—Multilateral re-
view of a license application to the extent that such
multilateral review is required by a relevant multilat-
eral regime.
(6) CONGRESSIONAL NOTIFICATION.—Such time
as is required for mandatory congressional notifica-
tions under this Act.
(7) CONSULTATIONS.—Consultation with foreign
governments, if such consultation is provided for by
a relevant multilateral regime as a precondition for
approving a license.
(8) INTELLIGENCE AGENCIES.—Delays necessary
to obtain information or assessments from intelligence
agencies.
(h) CLASSIFICATION REQUESTS AND OTHER INQUIR-
IES.—
(1) CLASSIFICATION REQUEST.—
(A) NOTIFICATION OF OTHER AGENCIES.—
In any case in which the Secretary receives a
written request asking for the proper classifica-
tion of an item on the Control List or the appli-
cability of licensing requirements under this
title, the Secretary shall promptly notify the Sec-
retary of Defense, the Secretary of State, and the
head of any other department or agency of the
United States that the Secretary considers ap-
propriate, of the request.
(B) DETERMINATION; RESOLUTION OF DIS-
PUTES.—The Secretary shall make the deter-
mination regarding proper classification within
14 days after receiving the request and inform
the person making the request of such determina-
tion. If an objection is raised by the Secretary
of State or the Secretary of Defense regarding the
Secretary’s determination within that time pe-
riod, the disagreement shall be resolved through
the interagency resolution process described in
section 402, except that any such disagreement
shall be resolved within 60 days.
(2) OTHER INQUIRIES.—In any case in which
the Secretary receives a written request for informa-
tion under this Act, the Secretary shall, within 30
days after receiving the request, reply with that infor-
mation to the person making the request.
SEC. 402. INTERAGENCY DISPUTE RESOLUTION PROCESS.
(a) IN GENERAL.—All license applications on which
agreement cannot be reached shall be referred to the inter-
agency dispute resolution process for decision.
(b) INTERAGENCY DISPUTE RESOLUTION PROCESS.—
(1) INITIAL RESOLUTION.—The Secretary shall
establish, select the chairperson of, and determine pro-
cedures for an interagency committee to review ini-
tially all license applications described in subsection
(a) with respect to which the Secretary and any of the
referral departments and agencies are not in agree-
ment. The chairperson committee shall consider
the positions of all the referral departments and agen-
cies (which shall be included in the minutes described
in subsection (c)(2)) and make a decision on the li-
cense application, including appropriate revisions or
conditions thereto., except that any decision
of the committee is not valid unless it is
unanimous. If such a unanimous decision
is not reached, the license at issue shall
be denied, unless the matter is appealed
under paragraph (3).
(2) INTELLIGENCE
COMMUNITY.—The analytic
product of the intelligence community should be fully
considered with respect to any proposed license under
this title.
(3) FURTHER RESOLUTION.—The President shall
establish additional levels for review or appeal of any
matter that cannot be resolved pursuant to the process
described in paragraph (1). Each such review shall
ensure that matters are resolved or referred to the
President not later than 90 days after the completed
license application is referred by the Secretary.
(3) FURTHER RESOLUTION.—The Presi-
dent shall establish additional levels for
review or appeal of any matter that can-
not be resolved pursuant to the process
described in paragraph (1). Each such re-
view shall—
(A) provide for decision-making
based on the concurrence of the par-
ticipating departments and agencies;
(B) provide that a department or
agency that fails to take a timely po-
sition, citing the specific statutory
and regulatory bases for a position,
shall be deemed to have no objection
to the pending decision;
(C) provide that any decision of
an interagency committee established
under paragraph (1) or interagency
dispute 
resolution 
process 
estab-
lished under this paragraph may be
escalated to the next higher level of
review at the request of an official
appointed by the President, by and
with the advice of the Senate, or an
officer properly acting in such capac-
ity, of a department or agency that
participated in the interagency com-
mittee or dispute resolution process
that made the decision; and
(D) ensure that matters are re-
solved or referred to the President
not later than 90 days after the date
the completed license application is
referred by the Secretary.
If concurrence of the participating de-
partments and agencies is not reached at
a level of review established under this
paragraph, the license at issue shall be
denied unless the matter is escalated to
the next higher level of review or the
President determines otherwise.
(c) FINAL ACTION.—
(1) IN GENERAL.—Once a final decision is made
under subsection (b), the Secretary shall promptly—
(A) issue the license and ensure that all ap-
propriate personnel in the Department (includ-
100
ing the Office of Export Enforcement) are noti-
fied of all approved license applications; or
(B) notify the applicant of the intention to
deny the application.
(2) MINUTES.—The interagency committee and
each level of the interagency dispute resolution process
shall keep reasonably detailed minutes of all meetings.
On each matter before the interagency committee or
before any other level of the interagency dispute reso-
lution process in which members disagree, each mem-
ber shall clearly state the reasons for the member’s po-
sition and the reasons shall be entered in the minutes.
TITLE 
V—INTERNATIONAL 
AR-
RANGEMENTS; FOREIGN BOY-
COTTS; SANCTIONS; AND EN-
FORCEMENT
SEC. 501. INTERNATIONAL ARRANGEMENTS.
(a) MULTILATERAL EXPORT CONTROL REGIMES.—
(1) POLICY.—It is the policy of the United
States to seek multilateral arrangements that support
the national security objectives of the United States
(as described in title II) and that establish fairer and
more predictable competitive opportunities for United
States exporters.
101
(2) PARTICIPATION IN EXISTING REGIMES.—Con-
gress encourages the United States to continue its ac-
tive participation in and to strengthen existing mul-
tilateral export control regimes.
(3) PARTICIPATION IN NEW REGIMES.—It is the
policy of the United States to participate in addi-
tional multilateral export control regimes if such par-
ticipation would serve the national security interests
of the United States.
(b) ANNUAL REPORT ON MULTILATERAL EXPORT CON-
TROL REGIMES.—Not later than February 1 of each year,
the President shall submit to the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Com-
mittee on International Relations of the House of Rep-
resentatives a report evaluating the effectiveness of each
multilateral export control regime, including an assessment
of the steps undertaken pursuant to subsections (c) and (d).
The report, or any part of this report, may be submitted
in classified form to the extent the President considers nec-
essary.
(c) STANDARDS FOR MULTILATERAL EXPORT CON-
TROL REGIMES.—The President shall take steps to establish
the following features in any multilateral export control re-
gime in which the United States is participating or may
participate:
102
(1) FULL MEMBERSHIP.—All supplier countries
are members of the regime, and the policies and ac-
tivities of the members are consistent with the objec-
tives and membership criteria of the multilateral ex-
port control regime.
(2) EFFECTIVE
ENFORCEMENT
AND
COMPLI-
ANCE.—The regime promotes enforcement and compli-
ance with the regime’s rules and guidelines.
(3) 
PUBLIC
UNDERSTANDING.—The 
regime
makes an effort to enhance public understanding of
the purpose and procedures of the multilateral export
control regime.
(4) 
EFFECTIVE
IMPLEMENTATION
PROCE-
DURES.—The multilateral export control regime has
procedures for the uniform and consistent interpreta-
tion and implementation of its rules and guidelines.
(5) ENHANCED
COOPERATION
WITH
REGIME
NONMEMBERS.—There is agreement among the mem-
bers of the multilateral export control regime to—
(A) cooperate with governments outside the
regime to restrict the export of items controlled
by such regime; and
(B) establish an ongoing mechanism in the
regime to coordinate planning and implementa-
103
tion of export control measures related to such
cooperation.
(6) PERIODIC
HIGH-LEVEL
MEETINGS.—There
are regular periodic meetings of high-level representa-
tives of the governments of members of the multilat-
eral export control regime for the purpose of coordi-
nating export control policies and issuing policy
guidance to members of the regime.
(7) COMMON
LIST
OF
CONTROLLED
ITEMS.—
There is agreement on a common list of items con-
trolled by the multilateral export control regime.
(8) REGULAR
UPDATES
OF
COMMON
LIST.—
There is a procedure for removing items from the list
of controlled items when the control of such items no
longer serves the objectives of the members of the mul-
tilateral export control regime.
(9) TREATMENT OF CERTAIN COUNTRIES.—There
is agreement to prevent the export or diversion of the
most sensitive items to countries whose activities are
threatening to the national security of the United
States or its allies.
(10) HARMONIZATION
OF
LICENSE
APPROVAL
PROCEDURES.—There is harmonization among the
members of the regime of their national export license
approval procedures, practices, and standards.
104
(11) UNDERCUTTING.—There is a limit with re-
spect to when members of a multilateral export con-
trol regime—
(A) grant export licenses for any item that
is substantially identical to or directly competi-
tive with an item controlled pursuant to the re-
gime, where the United States has denied an ex-
port license for such item, or
(B) approve exports to a particular end
user to which the United States has denied ex-
port license for a similar item.
(d) STANDARDS
FOR NATIONAL EXPORT CONTROL
SYSTEMS.—The President shall take steps to attain the co-
operation of members of each regime in implementing effec-
tive national export control systems containing the fol-
lowing features:
(1) EXPORT
CONTROL
LAW.—Enforcement au-
thority, civil and criminal penalties, and statutes of
limitations are sufficient to deter potential violations
and punish violators under the member’s export con-
trol law.
(2) LICENSE APPROVAL PROCESS.—The system
for evaluating export license applications includes
sufficient technical expertise to assess the licensing
105
status of exports and ensure the reliability of end
users.
(3) ENFORCEMENT.—The enforcement mecha-
nism provides authority for trained enforcement offi-
cers to investigate and prevent illegal exports.
(4) DOCUMENTATION.—There is a system of ex-
port control documentation and verification with re-
spect to controlled items.
(5) INFORMATION.—There are procedures for the
coordination and exchange of information concerning
licensing, end users, and enforcement with other mem-
bers of the multilateral export control regime.
(6) RESOURCES.—The member has devoted ade-
quate resources to administer effectively the authori-
ties, systems, mechanisms, and procedures described
in paragraphs (1) through (5).
(e) OBJECTIVES REGARDING MULTILATERAL EXPORT
CONTROL REGIMES.—The President shall seek to achieve
the following objectives with regard to multilateral export
control regimes:
(1) STRENGTHEN EXISTING REGIMES.—Strength-
en existing multilateral export control regimes—
(A) by creating a requirement to share in-
formation about export license applications
106
among members before a member approves an ex-
port license; and
(B) harmonizing national export license ap-
proval procedures and practices, including the
elimination of undercutting.
(2) REVIEW AND UPDATE.—Review and update
multilateral regime export control lists with other
members, taking into account—
(A) national security concerns;
(B) the controllability of items; and
(C) the costs and benefits of controls.
(3) ENCOURAGE
COMPLIANCE
BY
NONMEM-
BERS.—Encourage nonmembers of the multilateral
export control regime—
(A) to strengthen their national export con-
trol regimes and improve enforcement;
(B) to adhere to the appropriate multilat-
eral export control regime; and
(C) not to undermine an existing multilat-
eral export control regime by exporting con-
trolled items in a manner inconsistent with the
guidelines of the regime.
(f) TRANSPARENCY OF MULTILATERAL EXPORT CON-
TROL REGIMES.— -
107
(1) PUBLICATION OF INFORMATION ON EACH EX-
ISTING REGIME.—Not later than 120 days after the
date of enactment of this Act, the Secretary shall, for
each multilateral export control regime, to the extent
that it is not inconsistent with the arrangements of
that regime (in the judgment of the Secretary of
State) or with the national interest, publish in the
Federal Register and post on the Department of Com-
merce website the following information with respect
to the regime:
(A) The purposes of the regime.
(B) The members of the regime.
(C) The export licensing policy of the re-
gime.
(D) The items that are subject to export
controls under the regime, together with all pub-
lic notes, understandings, and other aspects of
the agreement of the regime, and all changes
thereto.
(E) Any countries, end uses, or end users
that are subject to the export controls of the re-
gime.
(F) Rules of interpretation.
(G) Major policy actions.
108
(H) The rules and procedures of the regime
for establishing and modifying any matter de-
scribed in subparagraphs (A) through (G) and
for reviewing export license applications.
(2) NEW REGIMES.—Not later than 60 days after
the United States joins or organizes a new multilat-
eral export control regime, the Secretary shall, to the
extent that it is not inconsistent with arrangements
under the regime (in the judgment of the Secretary of
State) or with the national interest, publish in the
Federal Register and post on the Department of Com-
merce website the information described in subpara-
graphs (A) through (H) of paragraph (1) with respect
to the regime.
(3) PUBLICATION OF CHANGES.—Not later than
60 days after a multilateral export control regime
adopts any change in the information published
under this subsection, the Secretary shall, to the ex-
tent not inconsistent with the arrangements under the
regime or the national interest, publish such changes
in the Federal Register and post such changes on the
Department of Commerce website.
(g) SUPPORT OF OTHER COUNTRIES’ EXPORT CON-
TROL SYSTEMS.—The Secretary is encouraged to continue
to—
109
(1) participate in training of, and provide
training to, officials of other countries on the prin-
ciples and procedures for implementing effective ex-
port controls; and
(2) participate in any such training provided by
other departments and agencies of the United States.
SEC. 502. FOREIGN BOYCOTTS.
(a) PURPOSES.—The purposes of this section are as
follows:
(1) To counteract restrictive trade practices or
boycotts fostered or imposed by foreign countries
against other countries friendly to the United States
or against any United States person.
(2) To encourage and, in specified cases, require
United States persons engaged in the export of items
to refuse to take actions, including furnishing infor-
mation or entering into or implementing agreements,
which have the effect of furthering or supporting the
restrictive trade practices or boycotts fostered or im-
posed by any foreign country against a country
friendly to the United States or against any United
States person.
(b) PROHIBITIONS AND EXCEPTIONS.—
(1) PROHIBITIONS.—In order to carry out the
purposes set forth in subsection (a), the President
110
shall issue regulations prohibiting any United States
person, with respect to that person’s activities in the
interstate or foreign commerce of the United States,
from taking or knowingly agreeing to take any of the
following actions with intent to comply with, further,
or support any boycott fostered or imposed by a for-
eign country against a country that is friendly to the
United States and is not itself the object of any form
of boycott pursuant to United States law or regula-
tion:
(A) Refusing, or requiring any other person
to refuse, to do business with or in the boycotted
country, with any business concern organized
under the laws of the boycotted country, with
any national or resident of the boycotted coun-
try, or with any other person, pursuant to an
agreement with, or requirement of, or a request
from or on behalf of the boycotting country (sub-
ject to the condition that the intent required to
be associated with such an act in order to con-
stitute a violation of the prohibition is not indi-
cated solely by the mere absence of a business re-
lationship with or in the boycotted country, with
any business concern organized under the laws of
the boycotted country, with any national or resi-
111
dent of the boycotted country, or with any other
person).
(B) Refusing, or requiring any other person
to refuse, to employ or otherwise discriminate
against any United States person on the basis of
the race, religion, sex, or national origin of that
person or of any owner, officer, director, or em-
ployee of such person.
(C) Furnishing information with respect to
the race, religion, sex, or national origin of any
United States person or of any owner, officer, di-
rector, or employee of such person.
(D) Furnishing information (other than
furnishing normal business information in a
commercial context, as defined by the Secretary)
about whether any person has, has had, or pro-
poses to have any business relationship (includ-
ing a relationship by way of sale, purchase, legal
or commercial representation, shipping or other
transport, insurance, investment, or supply)
with or in the boycotted country, with any busi-
ness concern organized under the laws of the boy-
cotted country, with any national or resident of
the boycotted country, or with any other person
that is known or believed to be restricted from
112
having any business relationship with or in the
boycotting country.
(E) Furnishing information about whether
any person is a member of, has made a contribu-
tion to, or is otherwise associated with or in-
volved in the activities of any charitable or fra-
ternal organization which supports the boycotted
country.
(F) Paying, honoring, confirming, or other-
wise implementing a letter of credit which con-
tains any condition or requirement the compli-
ance with which is prohibited by regulations
issued pursuant to this paragraph, and no
United States person shall, as a result of the ap-
plication of this paragraph, be obligated to pay
or otherwise honor or implement such letter of
credit.
(2) EXCEPTIONS.—Regulations issued pursuant
to paragraph (1) shall provide exceptions for—
(A) compliance, or agreement to comply,
with requirements—
(i) prohibiting the import of items
from the boycotted country or items pro-
duced or provided, by any business concern
organized under the laws of the boycotted
113
country or by nationals or residents of the
boycotted country; or
(ii) prohibiting the shipment of items
to the boycotting country on a carrier of the
boycotted country or by a route other than
that prescribed by the boycotting country or
the recipient of the shipment;
(B) compliance, or agreement to comply,
with import and shipping document require-
ments with respect to the country of origin, the
name of the carrier and route of shipment, the
name of the supplier of the shipment, or the
name of the provider of other services, except
that, for purposes of applying any exception
under this subparagraph, no information know-
ingly furnished or conveyed in response to such
requirements may be stated in negative, black-
listing, or similar exclusionary terms, other than
with respect to carriers or route of shipment as
may be permitted by such regulations in order to
comply with precautionary requirements pro-
tecting against war risks and confiscation;
(C) compliance, or agreement to comply, in
the normal course of business with the unilateral
and specific selection by a boycotting country, or
114
a national or resident thereof, or carriers, insur-
ers, suppliers of services to be performed within
the boycotting country, or specific items which,
in the normal course of business, are identifiable
by source when imported into the boycotting
country;
(D) compliance, or agreement to comply,
with export requirements of the boycotting coun-
try relating to shipment or transshipment of ex-
ports to the boycotted country, to any business
concern of or organized under the laws of the
boycotted country, or to any national or resident
of the boycotted country;
(E) compliance by an individual, or agree-
ment by an individual to comply, with the im-
migration or passport requirements of any coun-
try with respect to such individual or any mem-
ber of such individual’s family or with requests
for information regarding requirements of em-
ployment of such individual within the boy-
cotting country; and
(F) compliance by a United States person
resident in a foreign country, or agreement by
such a person to comply, with the laws of the
country with respect to the person’s activities ex-
115
clusively therein, and such regulations may con-
tain exceptions for such resident complying with
the laws or regulations of the foreign country
governing 
imports 
into 
such 
country 
of
trademarked, trade-named, or similarly specifi-
cally identifiable products, or components of
products for such person’s own use, including the
performance of contractual services within that
country.
(3) LIMITATION
ON
EXCEPTIONS.—Regulations
issued pursuant to paragraphs (2)(C) and (2)(F)
shall not provide exceptions from paragraphs (1)(B)
and (1)(C).
(4) ANTITRUST AND CIVIL RIGHTS LAWS NOT AF-
FECTED.—Nothing in this subsection may be con-
strued to supersede or limit the operation of the anti-
trust or civil rights laws of the United States.
(5) EVASION.—This section applies to any trans-
action or activity undertaken by or through a United
States person or any other person with intent to
evade the provisions of this section or the regulations
issued pursuant to this subsection. The regulations
issued pursuant to this section shall expressly provide
that the exceptions set forth in paragraph (2) do not
permit activities or agreements (expressed or implied
116
by a course of conduct, including a pattern of re-
sponses) that are otherwise prohibited, pursuant to
the intent of such exceptions.
(c) ADDITIONAL REGULATIONS AND REPORTS.—
(1) REGULATIONS.—In addition to the regula-
tions issued pursuant to subsection (b), regulations
issued pursuant to title III shall implement the pur-
poses set forth in subsection (a).
(2) REPORTS BY UNITED STATES PERSONS.—The
regulations shall require that any United States per-
son receiving a request to furnish information, enter
into or implement an agreement, or take any other
action referred to in subsection (a) shall report that
request to the Secretary, together with any other in-
formation concerning the request that the Secretary
determines appropriate. The person shall also submit
to the Secretary a statement regarding whether the
person intends to comply, and whether the person has
complied, with the request. Any report filed pursuant
to this paragraph shall be made available promptly
for public inspection and copying, except that infor-
mation regarding the quantity, description, and value
of any item to which such report relates may be treat-
ed as confidential if the Secretary determines that
disclosure of that information would place the United
117
States person involved at a competitive disadvantage.
The Secretary shall periodically transmit summaries
of the information contained in the reports to the Sec-
retary of State for such action as the Secretary of
State, in consultation with the Secretary, considers
appropriate to carry out the purposes set forth in sub-
section (a).
(d) PREEMPTION.—The provisions of this section and
the regulations issued under this section shall preempt any
law, rule, or regulation that—
(1) is a law, rule, or regulation of any of the sev-
eral States or the District of Columbia, or any of the
territories or possessions of the United States, or of
any governmental subdivision thereof; and
(2) pertains to participation in, compliance
with, implementation of, or the furnishing of infor-
mation regarding restrictive trade practices or boy-
cotts fostered or imposed by foreign countries against
other countries.
SEC. 503. PENALTIES.
(a) CRIMINAL PENALTIES.—
(1) VIOLATIONS BY AN INDIVIDUAL.—Any indi-
vidual who willfully violates, conspires to violate, or
attempts to violate any provision of this Act or any
regulation, license, or order issued under this Act
118
shall be fined up to 10 times the value of the exports
involved or $1,000,000, whichever is greater, impris-
oned for not more than 10 years, or both, for each vio-
lation.
(2) VIOLATIONS BY A PERSON OTHER THAN AN
INDIVIDUAL.—Any person other than an individual
who willfully violates, conspires to violate, or at-
tempts to violate any provision of this Act or any reg-
ulation, license, or order issued under this Act shall
be fined up to 10 times the value of the exports in-
volved or $5,000,000, whichever is greater, for each
violation.
(b) FORFEITURE OF PROPERTY INTEREST AND PRO-
CEEDS.—
(1) FORFEITURE.—Any person who is convicted
under paragraph (1) or (2) of subsection (a) shall, in
addition to any other penalty, forfeit to the United
States—
(A) any of that person’s security or other
interest in, claim against, or property or con-
tractual rights of any kind in the tangible items
that were the subject of the violation;
(B) any of that person’s security or other
interest in, claim against, or property or con-
tractual rights of any kind in the tangible prop-
119
erty 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 consti-
tuting, or derived from, any proceeds obtained
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 At-
torney General with respect to any forfeiture action
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 (relating to criminal for-
feiture), to the same extent as property subject to for-
feiture under that chapter.
(c) CIVIL PENALTIES; ADMINISTRATIVE SANCTIONS.—
(1) CIVIL PENALTIES.—The Secretary may im-
pose a civil penalty of up to $500,000 for each viola-
tion of a provision of this Act or any regulation, li-
cense, or order issued under this Act. A civil penalty
under this paragraph may be in addition to, or in
lieu of, any other liability or penalty which may be
imposed for such a violation.
(2) DENIAL OF EXPORT PRIVILEGES.—The Sec-
retary may deny the export privileges of any person,
120
including the suspension or revocation of the author-
ity of such person to export or receive United States-
origin items subject to this Act, for a violation of a
provision of this Act or any regulation, license, or
order issued under this Act.
(3) EXCLUSION FROM PRACTICE.—The Secretary
may exclude any person acting as an attorney, ac-
countant, consultant, freight forwarder, or in any
other representative capacity from participating be-
fore the Department with respect to a license applica-
tion or any other matter under this Act.
(d) PAYMENT OF CIVIL PENALTIES.—
(1) PAYMENT AS CONDITION OF FURTHER EX-
PORT PRIVILEGES.—The payment of a civil penalty
imposed under subsection (c) may be made a condi-
tion for the granting, restoration, or continuing va-
lidity of any export license, permission, or privilege
granted or to be granted to the person upon whom
such penalty is imposed. The period for which the
payment of a penalty may be made such a condition
may not exceed 1 year after the date on which the
payment is due.
(2) DEFERRAL OR SUSPENSION.—
(A) IN GENERAL.—The payment of a civil
penalty imposed under subsection (c) may be de-
121
ferred or suspended in whole or in part for a pe-
riod no longer than any probation period (which
may exceed 1 year) that may be imposed upon
the person on whom the penalty is imposed.
(B) NO BAR TO COLLECTION OF PENALTY.—
A deferral or suspension under subparagraph (A)
shall not operate as a bar to the collection of the
penalty concerned in the event that the condi-
tions of the suspension, deferral, or probation are
not fulfilled.
(3) TREATMENT
OF
PAYMENTS.—Any amount
paid in satisfaction of a civil penalty imposed under
subsection (c) shall be covered into the Treasury as
miscellaneous receipts.
(e) REFUNDS.—
(1) AUTHORITY.—
(A) IN GENERAL.—The Secretary may, in
the Secretary’s discretion, refund any civil pen-
alty imposed under subsection (c) on the ground
of a material error of fact or law in imposition
of the penalty.
(B) LIMITATION.—A civil penalty may not
be refunded under subparagraph (A) later than
2 years after payment of the penalty.
122
(2) PROHIBITION ON ACTIONS FOR REFUND.—
Notwithstanding section 1346(a) of title 28, United
States Code, no action for the refund of any civil pen-
alty referred to in paragraph (1) may be maintained
in any court.
(f) EFFECT OF OTHER CONVICTIONS.—
(1) DENIAL OF EXPORT PRIVILEGES.—Any per-
son convicted of a violation of—
(A) a provision of this Act or the Export
Administration Act of 1979,
(B) a provision of the International Emer-
gency Economic Powers Act (50 U.S.C. 1701 et
seq.),
(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 (22 U.S.C. 2778),
(F) section 16 of the Trading with the
Enemy Act (50 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),
123
(H) section 371 or 1001 of title 18, United
States Code, if in connection with the export of
controlled items under this Act or any regula-
tion, license, or order issued under the Inter-
national Emergency Economic Powers Act, or
the export of items controlled under the Arms
Export Control Act,
(I) section 175 of title 18, United States
Code,
(J) a provision of the Atomic Energy Act
(42 U.S.C. 201 et seq.),
(K) section 831 of title 18, United States
Code, or
(L) section 2332a of title 18, United States
Code,
may, at the discretion of the Secretary, be denied ex-
port privileges under this Act for a period not to ex-
ceed 10 years from the date of the conviction. The
Secretary may also revoke any export license under
this Act in which such person had an interest at the
time of the conviction.
(2) RELATED PERSONS.—The Secretary may ex-
ercise the authority under paragraph (1) with respect
to any person related through affiliation, ownership,
control, or position of responsibility to a person con-
124
victed of any violation of a law set forth in para-
graph (1) upon a showing of such relationship with
the convicted person. The Secretary shall make such
showing only after providing notice and opportunity
for a hearing.
(g) STATUTE OF LIMITATIONS.—
(1) IN GENERAL.—Except as provided in para-
graph (2), a proceeding in which a civil penalty or
other administrative sanction (other than a tem-
porary denial order) is sought under subsection (c)
may not be instituted more than 5 years after the
later of the date of the alleged violation or the date
of discovery of the alleged violation.
(2) EXCEPTION.—
(A) TOLLING.—In any case in which a
criminal indictment alleging a violation under
subsection (a) is returned within the time limits
prescribed by law for the institution of such ac-
tion, the limitation under paragraph (1) for
bringing a proceeding to impose a civil penalty
or other administrative sanction under this sec-
tion shall, upon the return of the criminal in-
dictment, be tolled against all persons named as
a defendant.
125
(B) DURATION.—The tolling of the limita-
tion with respect to a defendant under subpara-
graph (A) as a result of a criminal indictment
shall continue for a period of 6 months from the
date on which the conviction of the defendant be-
comes final, the indictment against the defendant
is dismissed, or the criminal action has con-
cluded.
(h) VIOLATIONS DEFINED BY REGULATION.—Nothing
in this section shall limit the authority of the Secretary to
define by regulation violations under this Act.
(i) CONSTRUCTION.—Nothing in subsection (c), (d),
(e), (f), or (g) limits—
(1) the availability of other administrative or ju-
dicial remedies with respect to a violation of a provi-
sion of this Act, or any regulation, order, or license
issued under this Act;
(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)).
126
SEC. 504. MISSILE PROLIFERATION CONTROL VIOLATIONS.
(a) VIOLATIONS BY UNITED STATES PERSONS.—
(1) SANCTIONS.—
(A) IN GENERAL.—If the President deter-
mines that a United States person knowingly—
(i) exports, transfers, or otherwise en-
gages in the trade of any item on the
MTCR Annex, in violation of the provisions
of section 38 (22 U.S.C. 2778) or chapter 7
of the Arms Export Control Act, title II or
III of this Act, or any regulations or orders
issued under any such provisions,
(ii) conspires to or attempts to engage
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 subparagraph (B).
(B) SANCTIONS DESCRIBED.—The sanctions
which apply to a United States person under
subparagraph (A) are the following:
(i) If the item on the MTCR Annex in-
volved 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
127
person, for a period of 2 years, licenses for
the transfer of missile equipment or tech-
nology controlled under this Act.
(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 Presi-
dent shall deny to such United States per-
son, for a period of not less than 2 years,
all licenses for items the export of which is
controlled under this Act.
(2) DISCRETIONARY SANCTIONS.—In the case of
any determination referred to in paragraph (1), the
Secretary may pursue any other appropriate pen-
alties under section 503.
(3) WAIVER.—The President may waive the im-
position of sanctions under paragraph (1) on a per-
son with respect to an item if the President certifies
to Congress that—
(A) the item is essential to the national se-
curity of the United States; and
(B) such person is a sole source supplier of
the item, the item is not available from any al-
ternative reliable supplier, and the need for the
item cannot be met in a timely manner by im-
128
proved manufacturing processes or technological
developments.
(b) TRANSFERS OF MISSILE EQUIPMENT OR TECH-
NOLOGY BY FOREIGN PERSONS.—
(1) SANCTIONS.—
(A) IN
GENERAL.—Subject to paragraphs
(3) through (7), if the President determines that
a foreign person, after the date of enactment of
this section, knowingly—
(i) exports, transfers, or otherwise en-
gages in the trade of any MTCR equipment
or technology that contributes to the design,
development, or production of missiles in a
country that is not an MTCR adherent and
would be, if it were United States-origin
equipment or technology, subject to the ju-
risdiction of the United States under this
Act,
(ii) conspires to or attempts to engage
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
129
President shall impose on that foreign person the
applicable sanctions under subparagraph (B).
(B) SANCTIONS DESCRIBED.—The sanctions
which apply to a foreign person under subpara-
graph (A) 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 missile
equipment or technology the export of which
is controlled under this Act.
(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 per-
son of items the export of which is con-
trolled under this Act.
(iii) If, in addition to actions taken
under clauses (i) and (ii), the President de-
termines that the export, transfer, or trade
has substantially contributed to the design,
development, or production of missiles in a
country that is not an MTCR adherent,
130
then the President shall prohibit, for a pe-
riod of not less than 2 years, the importa-
tion into the United States of products pro-
duced by that foreign person.
(2) INAPPLICABILITY WITH RESPECT TO MTCR
ADHERENTS.—Paragraph (1) does not apply with re-
spect to—
(A) any export, transfer, or trading activity
that is authorized by the laws of an MTCR ad-
herent, if such authorization is not obtained by
misrepresentation or fraud; or
(B) any export, transfer, or trade of an
item to an end user in a country that is an
MTCR adherent.
(3) EFFECT OF ENFORCEMENT ACTIONS BY MTCR
ADHERENTS.—Sanctions set forth in paragraph (1)
may not be imposed under this subsection on a person
with respect to acts described in such paragraph or,
if such sanctions are in effect against a person on ac-
count of such acts, such sanctions shall be terminated,
if an MTCR adherent is taking judicial or other en-
forcement action against that person with respect to
such acts, or that person has been found by the gov-
ernment of an MTCR adherent to be innocent of
wrongdoing with respect to such acts.
131
(4) ADVISORY OPINIONS.—The Secretary, in con-
sultation with the Secretary of State and the Sec-
retary of Defense, may, upon the request of any per-
son, issue an advisory opinion to that person as to
whether a proposed activity by that person would sub-
ject that person to sanctions under this subsection.
Any person who relies in good faith on such an advi-
sory 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 sanctions on account of
such activity.
(5) WAIVER AND REPORT TO CONGRESS.—
(A) WAIVER.—In any case other than one
in which an advisory opinion has been issued
under paragraph (4) stating that a proposed ac-
tivity would not subject a person to sanctions
under this subsection, the President may waive
the application of paragraph (1) to a foreign
person if the President determines that such
waiver is essential to the national security of the
United States.
(B) REPORT TO CONGRESS.—In the event
that the President decides to apply the waiver
described in subparagraph (A), the President
132
shall so notify Congress not less than 20 working
days before issuing the waiver. Such notification
shall include a report fully articulating the ra-
tionale and circumstances which led the Presi-
dent to apply the waiver.
(6) ADDITIONAL
WAIVER.—The President may
waive the imposition of sanctions under paragraph
(1) on a person with respect to a product or service
if the President certifies to the Congress that—
(A) the product or service is essential to the
national security of the United States; and
(B) such person is a sole source supplier of
the product or service, the product or service is
not available from any alternative reliable sup-
plier, and the need for the product or service
cannot be met in a timely manner by improved
manufacturing processes or technological develop-
ments.
(7) EXCEPTIONS.—The President shall not apply
the sanction under this subsection prohibiting the im-
portation of the products of a foreign person—
(A) in the case of procurement of defense ar-
ticles or defense services—
(i) under existing contracts or sub-
contracts, including the exercise of options
133
for production quantities to satisfy require-
ments essential to the national security of
the United States;
(ii) if the President determines that the
person to which the sanctions would be ap-
plied is a sole source supplier of the defense
articles and services, that the defense arti-
cles or services are essential to the national
security of the United States, and that al-
ternative sources are not readily or reason-
ably available; or
(iii) if the President determines that
such articles or services are essential to the
national security of the United States under
defense coproduction agreements or NATO
Programs of Cooperation;
(B) to products or services provided under
contracts entered into before the date on which
the President publishes his intention to impose
the sanctions; or
(C) to—
(i) spare parts,
(ii) component parts, but not finished
products, essential to United States prod-
ucts or production,
140
(3) REPORT TO CONGRESS.—The President shall
report to Congress, not later than 90 days after mak-
ing a determination under subsection (a)(1), on the
status of consultations with the appropriate govern-
ment under this subsection, and the basis for any de-
termination under paragraph (2) of this subsection
that such government has taken specific corrective ac-
tions.
(c) SANCTIONS.—
(1) DESCRIPTION OF SANCTIONS.—The sanctions
to be imposed pursuant to subsection (a)(1) are, ex-
cept as provided in paragraph (2) of this subsection,
the following:
(A) PROCUREMENT SANCTION.—The United
States Government shall not procure, or enter
into any contract for the procurement of, any
goods or services from any person described in
subsection (a)(3).
(B) IMPORT SANCTIONS.—The importation
into the United States of products produced by
any person described in subsection (a)(3) shall be
prohibited.
(2) EXCEPTIONS.—The President shall not be re-
quired to apply or maintain sanctions under this
section—