or to be exported from the United States, or 
that is otherwise subject to the Export Admin-
istration Regulations, with knowledge that a 
violation of this title, the Export Administration 
Regulations, or any order, license or authoriza-
tion issued thereunder, has occurred, is about 
to occur, or is intended to occur in connection 
with the item unless valid authorization is ob-
tained therefor. 
(F) No person may make any false or mis-
leading representation, statement, or certifi-
cation, or falsify or conceal any material fact, 
either directly to the Department of Commerce, 
or an official of any other United States agen-
cy, or indirectly through any other person— 
(i) in the course of an investigation or 
other action subject to the Export Admin-
istration Regulations; 
(ii) in connection with the prepara-
tion, submission, issuance, use, or mainte-
nance of any export control document or 
any report filed or required to be filed pur-
suant to the Export Administration Regu-
lations; or 
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(iii) for the purpose of or in connec-
tion with effecting any export, reexport, or 
transfer of an item subject to the Export 
Administration Regulations or a service or 
other activity of a United States person de-
scribed in section 104. 
(G) No person may engage in any trans-
action or take any other action with intent to 
evade the provisions of this title, the Export 
Administration Regulations, or any order, li-
cense, or authorization issued thereunder. 
(H) No person may fail or refuse to com-
ply with any reporting or recordkeeping require-
ments of the Export Administration Regula-
tions or of any order, license, or authorization 
issued thereunder. 
(I) Except as specifically authorized in the 
Export Administration Regulations or in writ-
ing by the Department of Commerce, no person 
may alter any license, authorization, export con-
trol document, or order issued under the Export 
Administration Regulations. 
(J) No person may take any action that is 
prohibited by a denial order issued by the De-
partment of Commerce to prevent imminent 
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violations of this title, the Export Administra-
tion Regulations, or any order, license or au-
thorization issued thereunder. 
(3) ADDITIONAL
REQUIREMENTS.—For pur-
poses of subparagraph (G), any representation, 
statement, or certification made by any person shall 
be deemed to be continuing in effect. Each person 
who has made a representation, statement, or certifi-
cation to the Department of Commerce relating to 
any order, license, or other authorization issued 
under this title shall notify the Department of Com-
merce, in writing, of any change of any material fact 
or intention from that previously represented, stated, 
or certified, immediately upon receipt of any infor-
mation that would lead a reasonably prudent person 
to know that a change of material fact or intention 
had occurred or may occur in the future. 
(b) CRIMINAL PENALTY.— 
(1) KNOWING VIOLATIONS.—Except as provided 
in paragraph (2), a person who knowingly violates or 
conspires or attempts to violate subsection (a) shall 
be fined not more than 5 times the amount or value 
of the exports, reexports, or transfers involved, or 
$500,000, whichever is greater, and, in the case of 
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an individual, imprisoned not more than 5 years, or 
both. 
(2) WILLFUL VIOLATIONS.—A person who will-
fully violates or conspires to or attempts to violate 
any provision of subsection (a) shall be fined not 
more than 5 times the amount or value of the ex-
ports, 
reexports, 
or 
transfers 
involved, 
or 
$1,000,000, whichever is greater, and, in the case of 
an individual, shall be fined not more than 
$250,000, or imprisoned not more than 10 years, or 
both. 
(c) CIVIL PENALTIES.— 
(1) AUTHORITY.—The President may impose 
the following civil penalties on a person for each vio-
lation by that person of this title or any regulation, 
order, or license issued under this title, for each vio-
lation: 
(A) A fine of not more than $250,000 or 
an amount that is twice the value of the trans-
action that is the basis of the violation with re-
spect to which the penalty is imposed, which-
ever is greater. 
(B) Revocation of a license issued under 
this title to the person. 
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(C) A prohibition on the person’s ability to 
export, reexport, or transfer any items, whether 
or not subject to controls under this title. 
(2) PROCEDURES.—Any civil penalty under this 
subsection may be imposed only after notice and op-
portunity for an agency hearing on the record in ac-
cordance with sections 554 through 557 of title 5, 
United States Code. 
(3) STANDARDS
FOR
LEVELS
OF
CIVIL
PEN-
ALTY.—The President may by regulation provide 
standards for establishing levels of civil penalty 
under this subsection based upon factors such as the 
seriousness of the violation, the culpability of the vi-
olator, and such mitigating factors as the violator’s 
record of cooperation with the Government in dis-
closing the violation. 
(d) CRIMINAL FORFEITURE OF PROPERTY INTEREST 
AND PROCEEDS.— 
(1) FORFEITURE.—Any person who is convicted 
under subsection (b) of a violation of a control im-
posed under section 103 (or any regulation, order, 
or license issued with respect to such control) shall, 
in addition to any other penalty, forfeit to the 
United States— 
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(A) any of that person’s interest in, secu-
rity of, claim against, or property or contractual 
rights of any kind in the tangible items that 
were the subject of the violation; 
(B) any of that person’s interest in, secu-
rity of, claim against, or property or contractual 
rights of any kind in tangible property that was 
used in the 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 
Attorney General with respect to any forfeiture ac-
tion under this subsection or with respect to any 
property that may be subject to forfeiture under this 
subsection, shall be governed by the provisions of 
section 1963 of title 18, United States Code. 
(e) PRIOR CONVICTIONS.— 
(1) LICENSE BAR.— 
(A) IN GENERAL.—The President may— 
(i) deny the eligibility of any person 
convicted of a criminal violation described 
in subparagraph (B) to export, reexport, or 
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transfer outside the United States any 
item, whether or not subject to controls 
under this title, for a period of up to 10 
years beginning on the date of the convic-
tion; and 
(ii) revoke any license or other author-
ization to export, reexport, or transfer 
items that was issued under this title and 
in which such person has an interest at the 
time of the conviction. 
(B) VIOLATIONS.—The violations referred 
to in subparagraph (A) are any criminal viola-
tions of, or criminal attempt or conspiracy to 
violate— 
(i) this title (or any regulation, li-
cense, or order issued under this title); 
(ii) any regulation, license, or order 
issued under the International Emergency 
Economic Powers Act; 
(iii) section 793, 794, or 798 of title 
18, United States Code; 
(iv) section 4(b) of the Internal Secu-
rity Act of 1950 (50 U.S.C. 783(b)); or 
(v) section 38 of the Arms Export 
Control Act (22 U.S.C. 2778). 
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(2) APPLICATION
TO
OTHER
PARTIES.—The 
President may exercise the authority under para-
graph (1) with respect to any person related, 
through affiliation, ownership, control, or position of 
responsibility, to any person convicted of any viola-
tion of law set forth in paragraph (1), upon a show-
ing of such relationship with the convicted party, 
and subject to the procedures set forth in subsection 
(c)(2). 
(f) OTHER AUTHORITIES.—Nothing in subsection 
(c), (d), or (e) limits— 
(1) the availability of other administrative or 
judicial remedies with respect to violations of this 
title, or any regulation, order, license or other au-
thorization issued under this title; 
(2) the authority to compromise and settle ad-
ministrative proceedings brought with respect to vio-
lations of this title, or any regulation, order, license, 
or other authorization issued under this title; 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)). 
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SEC. 111. ENFORCEMENT. 
(a) AUTHORITIES.—In order to enforce this title, the 
President may— 
(1) issue regulations, orders, and guidelines; 
(2) require, inspect, and obtain books, records, 
and any other information from any person subject 
to the provisions of this title; 
(3) administer oaths or affirmations and by 
subpoena require any person to appear and testify or 
to appear and produce books, records, and other 
writings, or both; 
(4) conduct investigations (including under-
cover) in the United States and in other countries, 
including intercepting any wire, oral, and electronic 
communications, conducting electronic surveillance, 
using pen registers and trap and trace devices, and 
carrying out acquisitions, to the extent authorized 
under chapters 119, 121, and 206 of title 18, 
United States Code, and other applicable laws of the 
United States; 
(5) inspect, search, detain, seize, or issue tem-
porary denial orders with respect to items, in any 
form, that are subject to controls under this title, or 
conveyances on which it is believed that there are 
items that have been, are being, or are about to be 
exported, reexported, or transferred in violation of 
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this title, or any regulations, order, license, or other 
authorization issued thereunder; 
(6) conduct prelicense inspections and post- 
shipment verifications; and 
(7) execute warrants and make arrests. 
(b) ENFORCEMENT OF SUBPOENAS.—In the case of 
contumacy by, or refusal to obey a subpoena issued to, 
any person under subsection (a)(3), a district court of the 
United States, after notice to such person and a hearing, 
shall have jurisdiction to issue an order requiring such 
person to appear and give testimony or to appear and 
produce books, records, and other writings, regardless of 
format, that are the subject of the subpoena. Any failure 
to obey such order of the court may be punished by such 
court as a contempt thereof. 
(c) BEST PRACTICE GUIDELINES.— 
(1) IN GENERAL.—The President, in consulta-
tion with the Secretary of Commerce and other Fed-
eral officials described in section 105(a), should pub-
lish and update ‘‘best practices’’ guidelines to assist 
persons in developing and implementing, on a vol-
untary basis, effective export control programs in 
compliance with the regulations issued under this 
title. 
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(2) EXPORT COMPLIANCE PROGRAM.—The im-
plementation by a person of an effective export com-
pliance program and a high quality overall export 
compliance effort by a person should ordinarily be 
given weight as mitigating factors in a civil penalty 
action against the person under this title. 
(d) REFERENCE TO ENFORCEMENT.—For purposes 
of this section, a reference to the enforcement of, or a vio-
lation of, this title includes a reference to the enforcement 
or a violation of any regulation, order, license or other au-
thorization issued pursuant to this title. 
(e) IMMUNITY.—A person shall not be excused from 
complying with any requirements under this section be-
cause of the person’s privilege against self-incrimination, 
but the immunity provisions of section 6002 of title 18, 
United States Code, shall apply with respect to any indi-
vidual who specifically claims such privilege. 
(f) CONFIDENTIALITY OF INFORMATION.— 
(1) EXEMPTIONS FROM DISCLOSURE.— 
(A) IN
GENERAL.—Information obtained 
under this title may be withheld from disclosure 
only to the extent permitted by statute, except 
that information described in subparagraph (B) 
shall be withheld from public disclosure and 
shall not be subject to disclosure under section 
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552(b)(3) of title 5, United States Code, unless 
the release of such information is determined by 
the President to be in the national interest. 
(B) INFORMATION DESCRIBED.—Informa-
tion described in this subparagraph is informa-
tion submitted or obtained in connection with 
an application for a license or other authoriza-
tion to export, reexport, or transfer items, en-
gage in other activities, a recordkeeping or re-
porting requirement, enforcement activity, or 
other operations under this title, including— 
(i) the license application, license, or 
other authorization itself; 
(ii) classification or advisory opinion 
requests, and the response thereto; 
(iii) license determinations, and infor-
mation pertaining thereto; 
(iv) information or evidence obtained 
in the course of any investigation; and 
(v) information obtained or furnished 
in connection with any international agree-
ment, treaty, or other obligation. 
(2) INFORMATION
TO
THE
CONGRESS
AND 
GAO.— 
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(A) IN GENERAL.—Nothing in this section 
shall be construed as authorizing the with-
holding of information from the Congress or 
from the Government Accountability Office. 
(B) AVAILABILITY TO THE CONGRESS.— 
(i) IN
GENERAL.—Any information 
obtained at any time under any provision 
of the Export Administration Act of 1979 
(as in effect on the day before the date of 
the enactment of this Act and as continued 
in effect pursuant to the International 
Emergency Economic Powers Act), under 
the Export Administration Regulations, or 
under this title, including any report or li-
cense application required under any such 
provision, shall be made available to a 
committee or subcommittee of Congress of 
appropriate jurisdiction, upon the request 
of the chairman or ranking minority mem-
ber of such committee or subcommittee. 
(ii) PROHIBITION ON FURTHER DIS-
CLOSURE.—No such committee or sub-
committee, or member thereof, may dis-
close any information made available under 
clause (i), that is submitted on a confiden-
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tial basis unless the full committee deter-
mines that the withholding of that infor-
mation is contrary to the national interest. 
(C) AVAILABILITY TO GAO.— 
(i) IN
GENERAL.—Information de-
scribed in clause (i) of subparagraph (B) 
shall be subject to the limitations con-
tained in section 716 of title 31, United 
States Code. 
(ii) PROHIBITION ON FURTHER DIS-
CLOSURE.—An officer or employee of the 
Government Accountability Office may not 
disclose, except to the Congress in accord-
ance with this paragraph, any such infor-
mation that is submitted on a confidential 
basis or from which any individual can be 
identified. 
(3) INFORMATION SHARING.— 
(A) IN GENERAL.—Any Federal official de-
scribed in section 105(a) who obtains informa-
tion that is relevant to the enforcement of this 
title, including information pertaining to any in-
vestigation, shall furnish such information to 
each appropriate department, agency, or office 
with enforcement responsibilities under this sec-
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tion to the extent consistent with the protection 
of intelligence, counterintelligence, and law en-
forcement sources, methods, and activities. 
(B) EXCEPTIONS.—The provisions of this 
paragraph shall not apply to information sub-
ject to the restrictions set forth in section 9 of 
title 13, United States Code, and return infor-
mation, as defined in subsection (b) of section 
6103 of the Internal Revenue Code of 1986 (26 
U.S.C. 6103(b)), may be disclosed only as au-
thorized by that section. 
(C) EXCHANGE
OF
INFORMATION.—The 
President shall ensure that the heads of depart-
ments, agencies, and offices with enforcement 
authorities under this title, consistent with pro-
tection of law enforcement and its sources and 
methods— 
(i) exchange any licensing and en-
forcement information with one another 
that is necessary to facilitate enforcement 
efforts under this section; and 
(ii) consult on a regular basis with 
one another and with the head of other de-
partments, agencies, and offices that ob-
tain information subject to this paragraph, 
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in order to facilitate the exchange of such 
information. 
(D) INFORMATION
SHARING
WITH
FED-
ERAL AGENCIES.—Licensing or enforcement in-
formation obtained under this title may be 
shared with heads of departments, agencies, 
and offices that do not have enforcement au-
thorities under this title on a case-by-case basis 
at the discretion of the President. Such infor-
mation may be shared only when the President 
makes a determination that the sharing of this 
information is in the national interest. 
(g) REPORTING REQUIREMENTS.—In the administra-
tion of this section, reporting requirements shall be de-
signed so as to reduce the cost of reporting, recordkeeping, 
and documentation to the extent consistent with effective 
enforcement and compilation of useful trade statistics. Re-
porting, recordkeeping, and documentation requirements 
shall be periodically reviewed and revised in the light of 
developments in the field of information technology. 
(h) CIVIL FORFEITURE.— 
(1) IN
GENERAL.—Any tangible items seized 
under subsection (a) by designated officers or em-
ployees shall be subject to forfeiture to the United 
States in accordance with applicable law, except that 
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property seized shall be returned if the property 
owner is not found guilty of a civil or criminal viola-
tion under section 109. 
(2) PROCEDURES.—Any seizure or forfeiture 
under this subsection shall be carried out in accord-
ance with the procedures set forth in section 981 of 
title 18, United States Code. 
SEC. 112. ADMINISTRATIVE PROCEDURE. 
(a) IN GENERAL.—The functions exercised under 
this title shall be subject to sections 551, 553 through 
559, and 701 through 706 of title 5, United States Code. 
(b) AMENDMENTS TO REGULATIONS.—The President 
shall notify in advance the Committee on Banking, Hous-
ing, and Urban Affairs of the Senate and the Committee 
on Foreign Affairs of the House of Representatives of any 
proposed amendments to the Export Administration Regu-
lations with an explanation of the intent and rationale of 
such amendments. 
SEC. 113. ANNUAL REPORT TO CONGRESS. 
(a) IN GENERAL.—The President shall submit to 
Congress, by December 31 of each year, a report on the 
implementation of this title during the preceding fiscal 
year. The report shall include an analysis of— 
(1) the effect of controls imposed under this 
title on exports, reexports, and transfers of items in 
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addressing threats to the national security or foreign 
policy of the United States, including a description 
of licensing processing times; 
(2) the impact of such controls on the scientific 
and technological leadership of the United States; 
(3) the consistency with such controls of export 
controls imposed by other countries; 
(4) efforts to provide exporters with compliance 
assistance, including specific actions to assist small- 
and medium-sized businesses; 
(5) a summary of regulatory changes from the 
prior fiscal year; 
(6) a summary of export enforcement actions, 
including of actions taken to implement end-use 
monitoring of dual-use, military, and other items 
subject to the Export Administration Regulations; 
(7) a summary of approved license applications 
to proscribed persons; and 
(8) efforts undertaken within the previous year 
to comply with the requirements of section 109, in-
cluding any ‘‘critical technologies’’ identified under 
such section and how or whether such critical tech-
nologies were controlled for export. 
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(b) FORM.—The report required under subsection (a) 
shall be submitted in unclassified form, but may contain 
a classified annex. 
SEC. 114. REPEAL. 
(a) IN GENERAL.—The Export Administration Act of 
1979 (50 U.S.C. App. 2401 et seq.) (as continued in effect 
pursuant to the International Emergency Economic Pow-
ers Act) is repealed. 
(b) IMPLEMENTATION.—The President shall imple-
ment the amendment made by subsection (a) by exercising 
the authorities of the President under the International 
Emergency Economic Powers Act (50 U.S.C. 1701 et 
seq.). 
SEC. 115. EFFECT ON OTHER ACTS. 
(a) IN GENERAL.—Except as otherwise provided in 
this title, nothing contained in this title shall be construed 
to modify, repeal, supersede, or otherwise affect the provi-
sions of any other laws authorizing control over exports, 
reexports, or transfers of any item, or activities of United 
States persons subject to the Export Administration Reg-
ulations. 
(b) COORDINATION OF CONTROLS.— 
(1) IN GENERAL.—The authority granted to the 
President under this title shall be exercised in such 
manner so as to achieve effective coordination with 
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all export control and sanctions authorities exercised 
by Federal departments and agencies delegated with 
authority under this title, particularly the Depart-
ment of State, the Department of the Treasury, and 
the Department of Energy. 
(2) SENSE OF CONGRESS.—It is the sense of 
Congress that in order to achieve effective coordina-
tion described in paragraph (1), such Federal de-
partments and agencies— 
(A) should continuously work to create en-
forceable regulations with respect to the export, 
reexport, and transfer by United States and 
foreign persons of commodities, software, tech-
nology, and services to various end uses and 
end users for foreign policy and national secu-
rity reasons; 
(B) should regularly work to reduce com-
plexity in the system, including complexity 
caused merely by the existence of structural, 
definitional, and other non-policy based dif-
ferences between and among different export 
control and sanctions systems; and 
(C) should coordinate controls on items ex-
ported, reexported, or transferred in connection 
with a foreign military sale under chapter 2 of 
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the Arms Export Control Act or a commercial 
sale under section 38 of the Arms Export Con-
trol Act to reduce as much unnecessary admin-
istrative burden as possible that is a result of 
differences between the exercise of those two 
authorities. 
(c) NONPROLIFERATION
CONTROLS.—Nothing in 
this title shall be construed to supersede the procedures 
published by the President pursuant to section 309(c) of 
the Nuclear Non-Proliferation Act of 1978. 
SEC. 116. TRANSITION PROVISIONS. 
(a) IN GENERAL.—All delegations, rules, regulations, 
orders, determinations, licenses, or other forms of admin-
istrative action that have been made, issued, conducted, 
or allowed to become effective under the Export Adminis-
tration Act of 1979 (as in effect on the day before the 
date of the enactment of this Act and as continued in ef-
fect pursuant to the International Emergency Economic 
Powers Act), or the Export Administration Regulations, 
and are in effect as of the date of the enactment of this 
Act, shall continue in effect according to their terms until 
modified, superseded, set aside, or revoked under the au-
thority of this title. 
(b) 
ADMINISTRATIVE
AND
JUDICIAL
PRO-
CEEDINGS.—This title shall not affect any administrative 
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government of which the Secretary of State has de-
termined, for purposes of section 104(c) of this Act, 
is a government that has repeatedly provided sup-
port for acts of international terrorism. 
TITLE II—ANTI-BOYCOTT ACT OF 
2018 
SEC. 201. SHORT TITLE. 
This Act may be cited as the ‘‘Anti-Boycott Act of 
2018’’. 
SEC. 202. STATEMENT OF POLICY. 
Congress declares it is the policy of the United 
States— 
(1) to oppose restrictive trade practices or boy-
cotts fostered or imposed by any foreign country, or 
requests to impose restrictive trade practices or boy-
cotts by any foreign country, 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 
goods or technology or other information to refuse to 
take actions, including furnishing information or en-
tering into or implementing agreements, which have 
the effect of furthering or supporting the restrictive 
trade practices or boycotts fostered or imposed by 
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any foreign country, or requests to impose restrictive 
trade practices or boycotts by any foreign country 
against a country friendly to the United States or 
against any United States person; and 
(3) to foster international cooperation and the 
development of international rules and institutions 
to assure reasonable access to world supplies. 
SEC. 203. FOREIGN BOYCOTTS. 
(a) PROHIBITIONS AND EXCEPTIONS.— 
(1) PROHIBITIONS.—For the purpose of imple-
menting the policies set forth in section 202, the 
President 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 agree-
ing to take any of the following actions with intent 
to comply with, further, or support any boycott fos-
tered or imposed by any foreign country, or request 
to impose any boycott by any foreign country, 
against a country which is friendly to the United 
States and which is not itself the object of any form 
of boycott pursuant to United States law or regula-
tion: 
(A) Refusing, or requiring any other per-
son to refuse, to do business with or in the boy-
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cotted country, with any business concern orga-
nized under the laws of the boycotted country, 
with any national or resident of the boycotted 
country, or with any other person, pursuant to 
an agreement with, a requirement of, or a re-
quest from or on behalf of the boycotting coun-
try. The mere absence of a business relationship 
with or in the boycotted country with any busi-
ness concern organized under the laws of the 
boycotted country, with any national or resident 
of the boycotted country, or with any other per-
son, does not indicate the existence of the in-
tent required to establish a violation of regula-
tions issued to carry out this subparagraph. 
(B) Refusing, or requiring any other per-
son to refuse, to employ or otherwise discrimi-
nating against any United States person on the 
basis of race, religion, sex, or national origin of 
that person or of any owner, officer, director, or 
employee 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, 
director, or employee of such person. 
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(D) Furnishing information, or requesting 
the furnishing of information, about whether 
any person has, has had, or proposes to have 
any business relationship (including a relation-
ship by way of sale, purchase, legal or commer-
cial representation, shipping or other transport, 
insurance, investment, or supply) with or in the 
boycotted country, with any business concern 
organized under the laws of the boycotted coun-
try, with any national or resident of the boy-
cotted country, or with any other person which 
is known or believed to be restricted from hav-
ing any business relationship with or in the boy-
cotting country. Nothing in this subparagraph 
shall prohibit the furnishing of normal business 
information in a commercial context as defined 
by the Secretary. 
(E) Furnishing information about whether 
any person is a member of, has made contribu-
tions to, or is otherwise associated with or in-
volved in the activities of any charitable or fra-
ternal organization which supports the boy-
cotted country. 
(F) Paying, honoring, confirming, or other-
wise implementing a letter of credit which con-
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tains any condition or requirement compliance 
with which is prohibited by regulations issued 
pursuant to this paragraph, and no United 
States person shall, as a result of the applica-
tion 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) complying or agreeing to comply with 
requirements— 
(i) prohibiting the import of goods or 
services from the boycotted country or 
goods produced or services provided by any 
business concern organized under the laws 
of the boycotted country or by nationals or 
residents of the boycotted country; or 
(ii) prohibiting the shipment of goods 
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) complying or agreeing to comply with 
import and shipping document requirements 
with respect to the country of origin, the name 
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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 no in-
formation knowingly furnished or conveyed in 
response to such requirements may be stated in 
negative, blacklisting, 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 pre-
cautionary requirements protecting against war 
risks and confiscation; 
(C) complying or agreeing to comply in the 
normal course of business with the unilateral 
and specific selection by a boycotting country, 
or national or resident thereof, of carriers, in-
surers, suppliers of services to be performed 
within the boycotting country or specific goods 
which, in the normal course of business, are 
identifiable by source when imported into the 
boycotting country; 
(D) complying or agreeing to comply with 
export requirements of the boycotting country 
relating to shipments or transshipments of ex-
ports to the boycotted country, to any business 
concern of or organized under the laws of the 
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boycotted country, or to any national or resi-
dent of the boycotted country; 
(E) compliance by an individual or agree-
ment by an individual to comply with the immi-
gration or passport requirements of any country 
with respect to such individual or any member 
of such individual’s family or with requests for 
information regarding requirements of employ-
ment of such individual within the boycotting 
country; and 
(F) compliance by a United States person 
resident in a foreign country or agreement by 
such person to comply with the laws of that 
country with respect to his activities exclusively 
therein, and such regulations may contain ex-
ceptions for such resident complying with the 
laws or regulations of that foreign country gov-
erning 
imports 
into 
such 
country 
of 
trademarked, trade named, or similarly specifi-
cally identifiable products, or components of 
products for his own use, including the per-
formance of contractual services within that 
country, as may be defined by such regulations. 
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(3) SPECIAL RULES.—Regulations issued pur-
suant to paragraphs (2)(C) and (2)(F) shall not pro-
vide exceptions from paragraphs (1)(B) and (1)(C). 
(4) RULE OF CONSTRUCTION.—Nothing in this 
subsection may be construed to supersede or limit 
the operation of the antitrust or civil rights laws of 
the United States. 
(5) APPLICATION.—This section shall apply to 
any transaction or activity undertaken, by or 
through a United States person or any other person, 
with intent to evade the provisions of this section as 
implemented by the regulations issued pursuant to 
this subsection, and such regulations shall expressly 
provide that the exceptions set forth in paragraph 
(2) shall not permit activities or agreements (ex-
pressed or implied by a course of conduct, including 
a pattern of responses) otherwise prohibited, which 
are not within the intent of such exceptions. 
(b) FOREIGN POLICY CONTROLS.— 
(1) IN GENERAL.—In addition to the regula-
tions issued pursuant to subsection (a), regulations 
issued under title I of this Act to carry out the poli-
cies set forth in section 102(1)(D) shall implement 
the policies set forth in this section. 
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(2) REQUIREMENTS.—Such regulations shall 
require that any United States person receiving a re-
quest for the furnishing of information, the entering 
into or implementing of agreements, or the taking of 
any other action referred to in subsection (a) shall 
report that fact to the Secretary, together with such 
other information concerning such request as the 
Secretary may require for such action as the Sec-
retary considers appropriate for carrying out the 
policies of that section. Such person shall also report 
to the Secretary whether such person intends to 
comply and whether such person has complied with 
such request. Any report filed pursuant to this para-
graph shall be made available promptly for public in-
spection and copying, except that information re-
garding the quantity, description, and value of any 
goods or technology to which such report relates 
may be kept confidential if the Secretary determines 
that disclosure thereof would place the United States 
person involved at a competitive disadvantage. The 
Secretary shall periodically transmit summaries of 
the information contained in such reports to the Sec-
retary of State for such action as the Secretary of 
State, in consultation with the Secretary, considers 
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appropriate for carrying out the policies set forth in 
section 202. 
(c) PREEMPTION.—The provisions of this section and 
the regulations issued pursuant thereto shall preempt any 
law, rule, or regulation of any of the several States or the 
District of Columbia, or any of the territories or posses-
sions of the United States, or of any governmental subdivi-
sion thereof, which law, rule, or regulation pertains to par-
ticipation in, compliance with, implementation of, or the 
furnishing of information regarding restrictive trade prac-
tices or boycotts fostered or imposed by foreign countries, 
or requests to impose restrictive trade practices or boy-
cotts by any foreign country, against other countries 
friendly to the United States. 
SEC. 204. ENFORCEMENT. 
(a) CIVIL PENALTIES.—The President may impose 
the following civil penalties on a person who violates sec-
tion 203 or any regulation issued under this title: 
(1) A fine of not more than $250,000 or an 
amount that is twice the amount of the transaction 
that is the basis of the violation with respect to 
which the penalty is imposed. 
(2) Revocation of a license issued under title I 
to the person. 
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(3) A prohibition on the person’s ability to ex-
port, reexport, or transfer any items, whether or not 
subject to controls under this title. 
(b) PROCEDURES.—Any civil penalty under this sec-
tion may be imposed only after notice and opportunity for 
an agency hearing on the record in accordance with sec-
tions 554 through 557 of title 5, United States Code, and 
shall be subject to judicial review in accordance with chap-
ter 7 of such title. 
(c) STANDARDS FOR LEVELS OF CIVIL PENALTY.— 
The President may by regulation provide standards for es-
tablishing levels of civil penalty under this section based 
upon factors such as the seriousness of the violation, the 
culpability of the violator, and the violator’s record of co-
operation with the Government in disclosing the violation. 
TITLE III—SANCTIONS REGARD-
ING MISSILE PROLIFERATION 
AND 
CHEMICAL 
AND 
BIO-
LOGICAL 
WEAPONS 
PRO-
LIFERATION 
SEC. 301. MISSILE PROLIFERATION CONTROL VIOLATIONS. 
(a) VIOLATIONS BY UNITED STATES PERSONS.— 
(1) SANCTIONS.— 
(A) SANCTIONABLE ACTIVITY.—The Presi-
dent shall impose the applicable sanctions de-
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scribed in subparagraph (B) if the President 
determines that a United States person know-
ingly— 
(i) exports, reexports, or transfers 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 I of this Act, or any reg-
ulations or orders issued under any such 
provisions; or 
(ii) conspires to or attempts to engage 
in such export, reexport, or transfer. 
(B) SANCTIONS.—The sanctions that apply 
to a United States person under subparagraph 
(A) are the following: 
(i) If the item on the MTCR Annex 
involved in the export, reexport, or transfer 
is missile equipment or technology within 
category II of the MTCR Annex, then the 
President shall deny to such United States 
person, for a period of 2 years, licenses for 
the transfer of missile equipment or tech-
nology controlled under title I. 
(ii) If the item on the MTCR Annex 
involved in the export, reexport, or transfer 
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is missile equipment or technology within 
category I of the MTCR Annex, then the 
President shall deny to such United States 
person, for a period of not less than 2 
years, all licenses for items the transfer of 
which is controlled under title I. 
(2) DISCRETIONARY SANCTIONS.—In the case 
of any determination referred to in paragraph (1), 
the President may pursue any other appropriate 
penalties under section 109 of this Act. 
(3) WAIVER.—The President may waive the im-
position of sanctions under paragraph (1) on a per-
son with respect to a product or service if the Presi-
dent 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 devel-
opments. 
(b) TRANSFERS OF MISSILE EQUIPMENT OR TECH-
NOLOGY BY FOREIGN PERSONS.— 
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(1) SANCTIONS.— 
(A) SANCTIONABLE ACTIVITY.—Subject to 
paragraphs (3) through (7), the President shall 
impose the applicable sanctions under subpara-
graph (B) on a foreign person if the Presi-
dent— 
(i) determines that a foreign person 
knowingly— 
(I) exports, reexports, or trans-
fers any MTCR equipment or tech-
nology that contributes to the design, 
development, or production of missiles 
in a country that is not an MTCR ad-
herent and would be, if it were United 
States-origin equipment or technology, 
subject to the jurisdiction of the 
United States under title I; 
(II) conspires to or attempts to 
engage in such export, reexport, or 
transfer; or 
(III) facilitates such export, reex-
port, or transfer by any other person; 
or 
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(ii) has made a determination with re-
spect to the foreign person under section 
73(a) of the Arms Export Control Act. 
(B) SANCTIONS.—The sanctions that apply 
to a foreign person under subparagraph (A) are 
the following: 
(i) If the item involved in the export, 
reexport, or transfer 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 trans-
fer of which is controlled under title I. 
(ii) If the item involved in the export, 
reexport, or transfer is within category I of 
the MTCR Annex, then the President shall 
deny, for a period of not less than 2 years, 
licenses for the transfer to such foreign 
person of items the transfer of which is 
controlled under title I. 
(2) INAPPLICABILITY WITH RESPECT TO MTCR 
ADHERENTS.—Paragraph (1) does not apply with 
respect to— 
(A) any export, reexport, or transfer that 
is authorized by the laws of an MTCR adher-
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ent, if such authorization is not obtained by 
misrepresentation or fraud; or 
(B) any export, reexport, or transfer 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 para-
graph (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 account of such acts, such sanctions 
shall be terminated, if an MTCR adherent is taking 
judicial or other enforcement action against that 
person with respect to such acts, or that person has 
been found by the government of an MTCR adher-
ent to be innocent of wrongdoing with respect to 
such acts. 
(4) WAIVER AND REPORT TO CONGRESS.— 
(A) WAIVER AUTHORITY.—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 se-
curity of the United States. 
(B) NOTIFICATION AND REPORT TO CON-
GRESS.—In the event that the President decides 
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to apply the waiver described in subparagraph 
(A), the President shall so notify the appro-
priate congressional committees not less than 
20 working days before issuing the waiver. 
Such notification shall include a report fully ar-
ticulating the rationale and circumstances 
which led the President to apply the waiver. 
(5) 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 appropriate congres-
sional committees 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 devel-
opments. 
(6) EXCEPTIONS.—The President shall not 
apply the sanction under this subsection prohibiting 
the importation of the products of a foreign per-
son— 
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(A) in the case of procurement of defense 
articles or defense services— 
(i) under existing contracts or sub-
contracts, including the exercise of options 
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 
applied is a sole source supplier of the de-
fense articles or defense services, that the 
defense articles or defense services are es-
sential to the national security of the 
United States, and that alternative sources 
are not readily or reasonably 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— 
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(i) spare parts; 
(ii) component parts, but not finished 
products, essential to United States prod-
ucts or production; 
(iii) routine services and maintenance 
of products, to the extent that alternative 
sources are not readily or reasonably avail-
able; or 
(iv) information and technology essen-
tial to United States products or produc-
tion. 
(c) DEFINITIONS.—In this section: 
(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means— 
(A) the Committee on Foreign Affairs of 
the House of Representatives; and 
(B) the Committee on Foreign Relations 
and the Committee on Banking, Housing, and 
Urban Affairs of the Senate. 
(2) DEFENSE ARTICLES; DEFENSE SERVICES.— 
The terms ‘‘defense articles’’ and ‘‘defense services’’ 
mean those items on the United States Munitions 
List as defined in section 47(7) of the Arms Export 
Control Act (22 U.S.C. 2794 note). 
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(3) MISSILE.—The term ‘‘missile’’ means a cat-
egory I system as defined in the MTCR Annex. 
(4) MISSILE TECHNOLOGY CONTROL REGIME; 
MTCR.—The term ‘‘Missile Technology Control Re-
gime’’ or ‘‘MTCR’’ means the policy statement, be-
tween the United States, the United Kingdom, the 
Federal Republic of Germany, France, Italy, Can-
ada, and Japan, announced on April 16, 1987, to re-
strict sensitive missile-relevant transfers based on 
the MTCR Annex, and any amendments thereto. 
(5) MTCR ADHERENT.—The term ‘‘MTCR ad-
herent’’ means a country that participates in the 
MTCR or that, pursuant to an international under-
standing to which the United States is a party, con-
trols MTCR equipment or technology in accordance 
with the criteria and standards set forth in the 
MTCR. 
(6) MTCR ANNEX.—The term ‘‘MTCR Annex’’ 
means the Guidelines and Equipment and Tech-
nology Annex of the MTCR, and any amendments 
thereto. 
(7) MISSILE
EQUIPMENT
OR
TECHNOLOGY; 
MTCR
EQUIPMENT
OR
TECHNOLOGY.—The terms 
‘‘missile equipment or technology’’ and ‘‘MTCR 
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equipment or technology’’ mean those items listed in 
category I or category II of the MTCR Annex. 
SEC. 302. CHEMICAL AND BIOLOGICAL WEAPONS PRO-
LIFERATION SANCTIONS. 
(a) IMPOSITION OF SANCTIONS.— 
(1) DETERMINATION BY THE PRESIDENT.—Ex-
cept as provided in subsection (b)(2), the President 
shall impose the sanction described in subsection (c) 
if the President determines that a foreign person has 
knowingly and materially contributed— 
(A) through the export from the United 
States of any item that is subject to the juris-
diction of the United States under this title; or 
(B) through the export from any other 
country of any item that would be, if they were 
United States goods or technology, subject to 
the jurisdiction of the United States under this 
title, 
to the efforts by any foreign country, project, or en-
tity described in paragraph (2) to use, develop, 
produce, stockpile, or otherwise acquire chemical or 
biological weapons. 
(2) COUNTRIES, PROJECTS, OR ENTITIES RE-
CEIVING ASSISTANCE.—Paragraph (1) applies in the 
case of— 
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(A) any foreign country that the President 
determines has, at any time after January 1, 
1980— 
(i) used chemical or biological weap-
ons in violation of international law; 
(ii) used lethal chemical or biological 
weapons against its own nationals; or 
(iii) made substantial preparations to 
engage in the activities described in clause 
(i) or (ii); 
(B) any foreign country whose government 
is determined for purposes of section 104(c) of 
this Act to be a government that has repeatedly 
provided support for acts of international ter-
rorism; or 
(C) any other foreign country, project, or 
entity designated by the President for purposes 
of this section. 
(3) PERSONS AGAINST WHICH SANCTIONS ARE 
TO BE IMPOSED.—A sanction shall be imposed pur-
suant to paragraph (1) on— 
(A) the foreign person with respect to 
which the President makes the determination 
described in that paragraph; 
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(B) any successor entity to that foreign 
person; and 
(C) any foreign person that is a parent, 
subsidiary, or affiliate of that foreign person if 
that parent, subsidiary, or affiliate knowingly 
assisted in the activities which were the basis of 
that determination. 
(b) CONSULTATIONS WITH AND ACTIONS BY FOR-
EIGN GOVERNMENT OF JURISDICTION.— 
(1) CONSULTATIONS.—If the President makes 
the determinations described in subsection (a)(1) 
with respect to a foreign person, the Congress urges 
the President to initiate consultations immediately 
with the government with primary jurisdiction over 
that foreign person with respect to the imposition of 
a sanction pursuant to this section. 
(2) ACTIONS
BY
GOVERNMENT
OF
JURISDIC-
TION.—In order to pursue such consultations with 
that government, the President may delay imposition 
of a sanction pursuant to this section for a period 
of up to 90 days. Following such consultations, the 
President shall impose the sanction unless the Presi-
dent determines and certifies to the appropriate con-
gressional committees that the Government has 
taken specific and effective actions, including appro-
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priate penalties, to terminate the involvement of the 
foreign person in the activities described in sub-
section (a)(1). The President may delay imposition 
of the sanction for an additional period of up to 90 
days if the President determines and certifies to the 
Congress that the government is in the process of 
taking the actions described in the preceding sen-
tence. 
(3) REPORT
TO
CONGRESS.—The President 
shall report to the appropriate congressional commit-
tees, not later than 90 days after making a deter-
mination under subsection (a)(1), on the status of 
consultations with the appropriate government under 
this subsection, and the basis for any determination 
under paragraph (2) of this subsection that such 
government has taken specific corrective actions. 
(c) SANCTION.— 
(1) DESCRIPTION OF SANCTION.—The sanction 
to be imposed pursuant to subsection (a)(1) is, ex-
cept as provided that the United States Government 
shall not procure, or enter into any contract for the 
procurement of, any goods or services from any per-
son described in subsection (a)(3). 
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(2) EXCEPTIONS.—The President shall not be 
required to apply or maintain a sanction under this 
section— 
(A) in the case of procurement of defense 
articles or defense services— 
(i) under existing contracts or sub-
contracts, including the exercise of options 
for production quantities to satisfy United 
States operational military requirements; 
(ii) if the President determines that 
the person or other entity to which the 
sanctions would otherwise be applied is a 
sole source supplier of the defense articles 
or defense services, that the defense arti-
cles or defense services are essential, and 
that alternative sources are not readily or 
reasonably available; or 
(iii) if the President determines that 
such articles or services are essential to the 
national security under defense coproduc-
tion agreements; 
(B) to products or services provided under 
contracts entered into before the date on which 
the President publishes his intention to impose 
sanctions; 
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(C) to— 
(i) spare parts; 
(ii) component parts, but not finished 
products, essential to United States prod-
ucts or production; or 
(iii) routine servicing and mainte-
nance of products, to the extent that alter-
native sources are not readily or reason-
ably available; 
(D) to information and technology essen-
tial to United States products or production; or 
(E) to medical or other humanitarian 
items. 
(d) TERMINATION OF SANCTIONS.—A sanction im-
posed pursuant to this section shall apply for a period of 
at least 12 months following the imposition of one sanction 
and shall cease to apply thereafter only if the President 
determines and certifies to the appropriate congressional 
committees that reliable information indicates that the 
foreign person with respect to which the determination 
was made under subsection (a)(1) has ceased to aid or 
abet any foreign government, project, or entity in its ef-
forts to acquire chemical or biological weapons capability 
as described in that subsection. 
(e) WAIVER.— 
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(1) CRITERION
FOR
WAIVER.—The President 
may waive the application of any sanction imposed 
on any person pursuant to this section, after the end 
of the 12-month period beginning on the date on 
which that sanction was imposed on that person, if 
the President determines and certifies to the appro-
priate congressional committees that such waiver is 
important to the national security interests of the 
United States. 
(2) NOTIFICATION OF AND REPORT TO CON-
GRESS.—If the President decides to exercise the 
waiver authority provided in paragraph (1), the 
President shall so notify the appropriate congres-
sional committees not less than 20 days before the 
waiver takes effect. Such notification shall include a 
report fully articulating the rationale and cir-
cumstances which led the President to exercise the 
waiver authority. 
(f) DEFINITIONS.—In this section: 
(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means— 
(A) the Committee on Foreign Affairs of 
the House of Representatives; and 
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(B) the Committee on Foreign Relations 
and the Committee on Banking, Housing, and 
Urban Affairs of the Senate. 
(2) DEFENSE ARTICLES; DEFENSE SERVICES.— 
The terms ‘‘defense articles’’ and ‘‘defense services’’ 
mean those items on the United States Munitions 
List or are otherwise controlled under the Arms Ex-
port Control Act. 
Æ 
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