I
103D CONGRESS
2D SESSION
H. R. 3937
Entitled the ‘‘Export Administration Act of 1994’’.
IN THE HOUSE OF REPRESENTATIVES
MARCH 2, 1994
Mr. GEJDENSON (by request) introduced the following bill; which was referred
to the Committee on Foreign Affairs
A BILL
Entitled the ‘‘Export Administration Act of 1994’’.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
TABLE OF CONTENTS
Page
Sec. 1. Title ...............................................................................................
Sec. 2. Findings .........................................................................................
Sec. 3. Policy statement ............................................................................
Sec. 4. General provisions .........................................................................
(a) Types of licenses ..........................................................................
(b) Control list ...................................................................................
(c) Militarily critical technologies list ................................................
(d) Right of export .............................................................................
(e) Delegation of authority ................................................................
(f) Notification of the public; consultation with business ..................
(g) Technical advisory committees .....................................................
(h) Fees ..............................................................................................
Sec. 5. Nonproliferation, national security, and foreign policy control au-
thorities ..................................................................................................
(a) Authority ......................................................................................
(b) Criteria .........................................................................................
(c) Consultation with industry ...........................................................
(d) Consultation with other countries ................................................
(e) Consultations with the Congress ..................................................
(f) Multilateral control regimes .........................................................
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(1) Policy ....................................................................................
(2) Standards for national systems ............................................
(3) Standards for multilateral regimes ......................................
(A) Full membership ..........................................................
(B) Effective enforcement and compliance ........................
(C) Public understanding ...................................................
(D) Effective implementation procedures ...........................
(E) Enhanced cooperation among regime members ...........
(F) Periodic high-level meetings .........................................
(G) Common list of controlled items ..................................
(4) Incentives for partnership ....................................................
(g) Publication of elements of multilateral control regimes ..............
(h) Seeking multilateral support for unilateral controls ....................
(i) Regulation indicating nature of unilateral controls ......................
(j) Implementation .............................................................................
(1) Nonproliferation ...................................................................
(A) Countries participating in certain agreements ............
(B) Other countries ............................................................
(2) Missile technology ................................................................
(3) Chemical and biological weapons .........................................
(4) International terrorism ........................................................
(5) Human rights and crime control ..........................................
(k) Unfair impact on United States exporter ....................................
(1) Policy ....................................................................................
(2) Relief from export controls ..................................................
(A) Foreign availability ......................................................
(B) Ineffective controls .......................................................
(C) Competitive disadvantage .............................................
(3) Provisions for relief ..............................................................
(4) Exceptions from relief ..........................................................
(5) Relief from traditional East-West COCOM controls ...........
(6) Procedures ............................................................................
(A) Notice of assessments ..................................................
(B) Procedures for making determinations ........................
(C) Negotiations to eliminate foreign availability ..............
(7) Sharing of information .........................................................
(8) Availability defined ...............................................................
(9) Congressional notification and reporting requirements .......
(l) Unilateral controls prohibited .......................................................
(m) International obligations .............................................................
(n) Information sharing .....................................................................
(o) Denied parties, sanctioned parties, specially designated nation-
als, and other parties presenting unacceptable risks of diversion
(1) Denied parties, sanctioned parties, specially designated na-
tionals .....................................................................................
(2) Other parties ........................................................................
(p) Freedom of information act exemption ........................................
Sec. 6. Short supply controls .....................................................................
(a) Authority ......................................................................................
(b) Monitoring ....................................................................................
(c) Domestically-produced crude oil ...................................................
(d) Agricultural commodities .............................................................
(e) Barter agreements ........................................................................
(f) Unprocessed red cedar ..................................................................
(g) Effect of controls on existing contracts .......................................
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(h) Oil exports for use by United States military facilities ...............
Sec. 7. Foreign boycotts ............................................................................
(a) Prohibitions and exceptions .........................................................
(b) Regulations ..................................................................................
(c) Preemption ...................................................................................
Sec. 8. Procedures for processing export license applications; other in-
quiries ....................................................................................................
(a) Primary responsibility of the secretary ........................................
(b) Initial screening ...........................................................................
(c) Action by other departments and agencies ..................................
(d) Interagency resolution ..................................................................
(e) Actions by the secretary ...............................................................
(f) Multilateral controls .....................................................................
(g) Exceptions from required time periods ........................................
(1) Agreement of the applicant ..................................................
(2) Prelicense checks ..................................................................
(3) Requests for government-to-government assurances ...........
(4) Multilateral review ...............................................................
(5) Congressional notification ....................................................
(h) Appeals .........................................................................................
(i) Classification requests and other inquiries ...................................
Sec. 9. Violations .......................................................................................
(a) Criminal penalties ........................................................................
(b) Forfeiture of property interest and proceeds ...............................
(c) Civil penalties; administrative sanctions ......................................
(d) Procedures relating to civil penalties and sanctions ....................
(e) Payment of civil penalties ............................................................
(f) Refunds .........................................................................................
100
(g) Collection ......................................................................................
100
(h) Prior convictions ..........................................................................
100
(i) Statute of limitations ....................................................................
102
(j) Imposition of temporary denial orders .........................................
102
(k) Violations defined by regulation ..................................................
105
(l) Other authorities ...........................................................................
105
Sec. 10. Enforcement ................................................................................
106
(a) General authority and designation ...............................................
106
(b) Forfeiture .....................................................................................
111
(c) Undercover investigative operations .............................................
112
(d) Reference to enforcement .............................................................
116
Sec. 11. Authority and procedures ............................................................
117
(a) Under secretary of commerce ......................................................
117
(b) Regulations ..................................................................................
117
(c) Confidentiality of information ......................................................
118
(1) Exemptions from disclosure .................................................
118
(2) Information to Congress and GAO ......................................
119
(3) Commerce/customs information exchange ............................
122
(4) Penalties for disclosure of confidential information ............
122
(d) Public participation ......................................................................
123
(e) Control list development and review ............................................
123
(f) Authority for seminar and publications fund ...............................
126
(g) Support of other countries’ export control program ....................
127
(h) Applicability of administrative procedures act .............................
127
(1) Exemption ............................................................................
127
(2) Judicial review ......................................................................
127
(i) Incorporated commodities, technology, and software ...................
129
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(1) Commodities containing controlled parts and components..
129
(2) Reexports of foreign-made items incorporating United
States items ............................................................................
130
(j) Exceptions for medical and humanitarian purposes .....................
132
(k) Sanctity of existing contracts and licenses ..................................
132
(l) Fact-finding authority ..................................................................
133
(m) Militarily critical technologies list development, review and use..
135
Sec. 12A. Sanctions for proliferation activity and the use of chemical
and biological weapons and missiles ......................................................
137
(a) Determinations .............................................................................
137
(1) Determination of activity supporting the proliferation of
chemical and biological weapons and missiles ........................
137
(2) Determination of use of chemical or biological weapons .....
138
(b) Persons against which sanctions are to be imposed ....................
139
(c) Sanctions ......................................................................................
139
(1) Mandatory sanctions ............................................................
139
(2) Discretionary sanctions ........................................................
140
(3) Mandatory sanctions for use of chemical or biological
weapons ..................................................................................
141
(A) Foreign assistance .......................................................
141
(B) Arms sales ....................................................................
141
(C) Arms sales financing ....................................................
142
(D) Denial of United States Government credit or other
financial assistance .........................................................
142
(E) Exports of national security-sensitive items ................
142
(4) Additional sanctions if certain conditions not met ..............
142
(5) Additional sanctions for use of chemical or biological weap-
ons ..........................................................................................
143
(A) Multilateral development bank assistance ...................
144
(B) Bank loans ...................................................................
144
(C) Further export restrictions ..........................................
144
(D) Import restrictions .......................................................
144
(E) Diplomatic relations .....................................................
145
(F) Presidential action regarding aviation .........................
145
(d) Deferral and limitation ................................................................
147
(e) Exceptions ....................................................................................
149
(f) Termination of sanctions for using chemical or biological weap-
ons ..................................................................................................
151
(g) Waiver ..........................................................................................
152
(1) Criterion for waiver ..............................................................
152
(2) Notification of and report to congress .................................
152
(h) Regulatory implementation of sanctions ......................................
152
Sec. 12B. Sanctions for proliferation activity and the use of chemical
and biological weapons ...........................................................................
153
‘‘Sec. 72. Sanctions against certain foreign persons and countries..
153
‘‘(a) Determinations ...................................................................
153
‘‘(1) Determination of activity supporting the prolifera-
tion of chemical and biological weapons and missiles ....
153
‘‘(2) Determination of use of chemical or biological weap-
ons ..................................................................................
155
‘‘(b) Persons against which sanctions are to be imposed ..........
155
‘‘(c) Sanctions ............................................................................
156
‘‘(1) Mandatory sanctions ..................................................
156
‘‘(2) Discretionary sanctions ..............................................
157
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‘‘(3) Mandatory sanctions for use of chemical or biological
weapons ...........................................................................
157
‘‘(A) Foreign assistance ..............................................
157
‘‘(B) Arms sales ..........................................................
157
‘‘(C) Arms sales financing ..........................................
158
‘‘(D) Denial of United States Government credit or
other financial assistance ................................................
158
‘‘(E) Exports of national security-sensitive items ......
158
‘‘(4) Additional sanctions if certain conditions not met .....
159
‘‘(5) Additional sanctions for use of chemical or biological
weapons ...........................................................................
160
‘‘(A) Multilateral development bank assistance ..........
160
‘‘(B) Bank loans .........................................................
160
‘‘(C) Further export restrictions .................................
160
‘‘(D) Import restrictions .............................................
160
‘‘(E) Diplomatic relations ...........................................
161
‘‘(F) Presidential action regarding aviation ...............
161
‘‘(d) Deferral and limitation ......................................................
163
‘‘(e) Exceptions ..........................................................................
165
‘‘(f) Termination of sanctions for using chemical or biological
weapons ..................................................................................
167
‘‘(g) Waiver ................................................................................
168
‘‘(1) Criterion for waiver ....................................................
168
‘‘(2) Notification of and report to Congress ......................
168
‘‘(h) Regulatory implementation of sanctions ............................
168
Sec. 13. Annual report ..............................................................................
169
Sec. 14. Definitions ...................................................................................
171
Sec. 15. Effects on other acts ...................................................................
178
(a) Commodity jurisdiction ................................................................
178
(1) Coordination of controls .......................................................
179
(2) Elimination of overlapping controls .....................................
179
(3) Commodity jurisdiction dispute resolution ...........................
179
(b) In general .....................................................................................
180
(c) Amendments to the International Emergency Economic Powers
Act ..................................................................................................
180
‘‘Sec. 208. Confidentiality of information ..................................
180
‘‘(1) Exemptions from disclosure .......................................
180
‘‘(2) Information to Congress and GAO ............................
181
‘‘(3) Penalties for disclosure of confidential information ...
184
(d) Civil aircraft equipment ...............................................................
184
(e) Nuclear nonproliferation controls .................................................
185
(f) Conforming amendment to the Arms Export Control Act ...........
185
(g) Effect on section 38(e) of the Arms Export Control Act ............
190
Sec. 16. Authorization of appropriations ..................................................
191
Sec. 17. Effective date ...............................................................................
191
Sec. 18. Savings provision .........................................................................
191
(a) In general .....................................................................................
191
(b) Repeal ..........................................................................................
192
(c) Administrative proceedings ..........................................................
192
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SECTION 1. TITLE.
This Act may be cited as the ‘‘Export Administration
Act of 1994’’ and shall hereafter be referred to as the
‘‘Act’’.
SEC. 2. FINDINGS.
The Congress makes the following findings:
(1) Export controls shall be a part of a com-
prehensive response to national security threats.
United States exports should be restricted only for
significant national security, non-proliferation, and
foreign reasons.
(2) The proliferation of weapons of mass de-
struction, their delivery systems, and other signifi-
cant military capabilities has become one of the most
serious threats to world pace and to our national
security.
(3) Since growing exports are essential to fu-
ture economic growth, restrictions on exports must
be evaluated in terms of their effects on the United
States economy. Economic interests must play a key
role in decisions on export controls and the rigor of
economic analysis and data available in the decision-
making process must be enhanced.
(4) Exports of certain commodities, technology,
and software may adversely affect the national secu-
rity and foreign policy of the United States, by mak-
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ing a significant contribution to the military poten-
tial of individual countries or by disseminating the
capability to design, develop, test, produce, stockpile,
or use weapons of mass destruction, missile delivery
systems, and other significant military capabilities.
The administration of export controls should empha-
size the control of exports that could make a signifi-
cant contribution to the military potential of any
country which would be detrimental to the national
security and foreign policy of the United States and
the control of items that could disseminate the capa-
bility to produce and use weapons of mass destruc-
tion, missile delivery systems, and other significant
military capabilities.
(5) The acquisition of sensitive commodities,
technology, and software by those countries and end
users whose actions or policies run counter to Unit-
ed States national security or foreign policy interests
may enhance the military-industrial capabilities of
those countries, particularly their ability to design,
develop, test, produce, stockpile, use, and deliver nu-
clear, chemical, and biological weapons, missile deliv-
ery systems, and other significant military capabili-
ties. This enhancement threatens the security of the
United States, its allies, and other friendly nations,
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and places additional demands on the defense budg-
et of the United States. Availability to certain coun-
tries and end users of items that contribute to mili-
tary capabilities or the proliferation of weapons of
mass destruction is a fundamental concern of the
United States and should be eliminated through ne-
gotiations and other appropriate means whenever
possible.
(6) The national security of the United States
depends not only on wise foreign policies and a
strong defense, but also a vibrant national economy.
To be truly effective, export controls should be ap-
plied uniformly by all suppliers.
(7) The United States export control system
must not be overly restrictive or bureaucratic, or un-
dermine the competitive position of American indus-
try. The export control system must be efficient, re-
sponsive, transparent, and effective.
(8) Export controls should be focused on those
items that materially contribute to a country’s or
end user’s military or proliferation potential. The
United States must pursue the maximum effective-
ness of multilateral export control regimes, including
comprehensive enforcement measures. The United
States recognizes the importance of comprehensive
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enforcement measures to maximize the effectiveness
of multilateral controls. Therefore, the United States
must level the playing field for United States trade
and enhance the effectiveness of controls by pursu-
ing multilateral controls and harmonizing their im-
plementation.
(9) Except in the event the United States is the
sole source of critical supplies, unilateral export con-
trols may not be truly effective in influencing the be-
havior of other governments and impeding access by
target countries to controlled items. Unilateral con-
trols may therefore impede access to United States
sources of supply without affecting the ability of tar-
get countries to obtain controlled items elsewhere.
Unilateral controls may therefore permit foreign
competitors to serve markets the United States Gov-
ernment denies to American firms and workers and
impair the reliability of United States suppliers in
comparison with their foreign competitors.
(10) While the United States may at times have
to act unilaterally, we should strive to avoid unilat-
eral action if it damages United States commercial
interests without effectively promoting our non-
proliferation and other national security and foreign
policy objectives. At the same time, the need to lead
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the international community or overriding national
security or foreign policy interests may justify uni-
lateral controls in specific cases.
(11) The multilateral export control system,
which helped contain military threats posed by the
former Soviet Bloc countries, should be replaced by
an effective and efficient multilateral export control
program furthering vital interests of the United
States in the post-Cold War era.
(12) International treaties, such as the Chemi-
cal Weapons Convention, and international agree-
ments and arrangements intended to control, lessen
or eliminate weapons of mass destruction should be
fully implemented by, inter alia, imposing restric-
tions on imports and exports of designated items, es-
tablishing, monitoring and transmitting reports on
the products, processing, consumption, export and
import of designated items, and complying with ver-
ification regimes mandated by such treaties, agree-
ments, and arrangements.
(13) Restrictions that negatively affect the
United States industrial base may ultimately weaken
United States military capabilities and lead to de-
pendencies on foreign sources for key components.
The availability of certain items in the United States
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and from abroad may affect the welfare of the do-
mestic economy.
(14) It is important that the administration of
export controls imposed for foreign policy purposes
give special emphasis to the need to control exports
of items and substances hazardous to the public
health and the environment which are banned or se-
verely restricted for use in the United States, and
which, if exported, could affect the international rep-
utation of the United States as a responsible trading
partner.
SEC. 3. POLICY STATEMENT.
It is the policy of the United States:
(1) To minimize uncertainties in export control
policy and to encourage trade with all countries with
which the United States has diplomatic or trading
relations, except those countries with which such
trade has been determined by the President to be
against the national interest.
(2) That the United States should not restrict
export trade by its citizens except when necessary
for significant national security, non-proliferation,
foreign policy, or short supply objectives and such
restrictions are administered consistent with basic
standards of fairness, and are implemented only
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after full consideration of the impact on the economy
of the United States and only to the extent nec-
essary—
(A) to stem the proliferation of weapons of
mass destruction and the means to deliver them
by—
(i) leading international efforts to con-
trol the proliferation of chemical and bio-
logical weapons, nuclear explosive devices,
missile delivery systems, and other signifi-
cant military capabilities;
(ii) controlling involvement and con-
tributions by United States persons to for-
eign programs intended to design, develop,
test, produce, stockpile, or use chemical
and biological weapons, nuclear explosive
devices, missile delivery systems, and other
significant military capabilities and the
means to design, develop, test, produce,
stockpile, or use them; and
(iii) implementing international agree-
ments and arrangements that provide for
controls on imports and exports of des-
ignated items, reports on the production,
processing, consumption, exports and im-
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ports of such items, and compliance with
verification programs;
(B) to restrict the export of items that
would make a significant contribution to the
military potential of countries that would prove
detrimental to the national security and foreign
policy of the United States;
(C) to restrict the export of items where
necessary to significantly further the foreign
policy of the United States or to fulfill its de-
clared international commitments; and
(D) to restrict the export of items where
necessary to protect the domestic economy from
the excessive drain of scarce materials or to se-
cure the removal by foreign countries of restric-
tions on access to supplies where such restric-
tions have or may have a serious inflationary
impact, have caused or may cause a serious do-
mestic shortage, or have been imposed for pur-
poses of influencing the foreign policy of the
United States.
(3) To further increase the reliance of the
United States upon multilateral coordination of con-
trols through effective control regimes that maintain
lists of controlled items that are truly critical to the
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control objectives, strive to increase membership to
include all relevant countries, maintain common cri-
teria and procedures for licensing, and harmonize
member countries’ licensing practices. It is the pol-
icy of the United States that multilateral controls
are the best means of achieving the objectives of the
United States.
(4) To encourage all countries that produce
items that are controlled by multilateral regimes to
adhere to the guidelines and controls of the regimes
and to join the regime if they meet the relevant cri-
teria for membership.
(5) To make every effort to achieve effective
multilateral export controls in all cases where the
United States imposes export controls.
(6) To avoid unilateral export controls and poli-
cies except when dictated by overriding national in-
terests, to continue to work with other supplier na-
tions to make export controls multilateral and to
harmonize their implementation, and to avoid unilat-
eral action if it damages United States commercial
interests without effectively promoting our non-
proliferation and other national security and foreign
policy objectives. The United States will therefore
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impose unilateral export controls only when the fol-
lowing conditions are met:
(A) Diplomatic efforts have failed or clear-
ly would be unsuccessful in establishing a multi-
lateral regime.
(B) The national security, nonproliferation,
or foreign policy objectives expected to be
achieved by the unilateral control justify any
expected loss of sales, jobs, and reliability on
the part of United States exporters.
(7) To eliminate unilateral dual-use export con-
trols and policies unless their continuation in force
is essential to United States national security, non-
proliferation, or foreign policy interests.
(8) To eliminate unnecessary and ineffective ex-
port controls.
(9) To make all licensing decisions in a timely
manner so undue delays in the licensing process will
not cause a United States firm to lose an export
sale.
(10) To ensure that control lists are periodically
updated to reflect the changing proliferation threat,
advances in technology, and a realistic appraisal of
what is beyond the reach of effective control.
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(11) To maintain a presumption of approval of
applications for authority to export dual-use goods
to civil end uses and end users under this Act, ab-
sent sound reasons for denial based on national se-
curity, nonproliferation and foreign policy grounds,
based upon the commitment of the United States to
an open international trading system and the need
to ensure American competitiveness.
(12) To use export controls to encourage other
countries to take immediate steps to prevent the use
of their territories or resources to aid, encourage or
give sanctuary to those persons directing, supporting
or participating in acts of international terrorism.
To achieve this objective, the President shall make
reasonable and prompt efforts to secure the removal
or reduction of such assistance to international ter-
rorists through international cooperation and agree-
ment before imposing export controls.
(13) To sustain vigorous scientific enterprise.
To do so involves sustaining the ability of scientists
and other scholars freely to communicate research
findings, in accordance with the applicable provisions
of law, by means of publication, teaching, con-
ferences, and other forms of scholarly exchange.
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(14)(A) To oppose restrictive trade practices or
boycotts fostered or imposed by foreign countries
against other countries friendly to the United States
or against any United States persons; and
(B) to encourage and, in specified cases, require
United States persons engaged in the export of com-
modities, software, technology and other information
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 persons.
(15) To ensure that United States economic in-
terests play a key role in decisions on export controls
and take immediate action to increase the rigor of
economic analysis and data available in the decision-
making process.
(16) To streamline export licensing functions
and thereby better serve the exporting public by re-
ducing and eliminating overlapping, conflicting, and
inconsistent regulatory burdens; and further, to cre-
ate a more efficient, responsive, transparent, and ef-
fective export control process.
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(17) To cooperate with other countries with
which the United States has defense treaty commit-
ments or common strategic objectives in restricting
the export of goods and technology which would
make a significant contribution to the military po-
tential of any country or combination of countries
which would prove detrimental to the national secu-
rity of the United States and of those countries with
which the United States has defense treaty commit-
ments or common strategic objectives, and to en-
courage other friendly countries to cooperate in re-
stricting the sale of goods and technology that can
harm our mutual security.
(18) To promote the national security of the
United States which requires that the nation’s econ-
omy shall flourish, its geographic integrity is main-
tained, its political and foreign policy views are re-
spected, the freedom and well being of its citizens
are assured, and that American values are pre-
served. The United States as a world power must
protect its national security against direct and indi-
rect threats through the promotion of nonprolifera-
tion policies in all areas of the world.
(19) To implement export controls and diplo-
matic activity needed to sustain multilateral and bi-
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lateral activities and thereby complement and rein-
force each other.
(20) To enhance the national security and non-
proliferation interests of the United States. To this
end and consistent with the other policies of this sec-
tion and the criteria of section 5(b) of this Act, the
United States will use multilateral and unilateral
controls when necessary to ensure that access to
weapons of mass destruction, missile delivery sys-
tems, and other significant military capabilities is re-
stricted. While the multilateral nonproliferation re-
gimes will be the primary instruments through which
the United States will pursue its nonproliferation
goals, it will also engage in bilateral agreements and,
when consistent with the policies of this section and
the criteria of section 5(b), take unilateral action.
(21) To deter and punish acts of international
terrorism and to encourage other countries to take
immediate steps to do so, or to terminate their sup-
port for, encouragement of, or use of their territories
to aid or give sanctuary to, persons and groups in-
volved in international terrorism. To this end and
consistent with the policies of this section and the
criteria of section 5(b) of this Act, the United States
should distance itself from countries that have vio-
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lated international norms of behavior by repeatedly
supporting acts of international terrorism by re-
stricting exports to those countries. The United
States may establish such controls on exports as
may be appropriate to induce such countries to
change their unacceptable policies.
(22) To promote international peace, stability,
and respect of fundamental human rights. The
United States may establish controls on exports to
countries that threaten regional stability, abuse of
fundamental rights of their citizens, or to promote
other important foreign policy objectives of the Unit-
ed States consistent with the policies of this section
and the criteria of section 5(b) of this Act.
(23) In developing changes to multilateral con-
trol lists, to seek to focus controls on only that set
of items that, if taken together and if denied to tar-
get countries, would carry out the policy of the
United States to deny such countries the ability to
design, develop, test, produce, stockpile, or use rel-
evant conventional military capability, weapons of
mass destruction, their delivery systems, or other ca-
pabilities the denial of which are the goals of United
States export control policy.
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SEC. 4. GENERAL PROVISIONS.
(a) TYPES OF LICENSES.—The Secretary may re-
quire any type of validated or general license under such
terms and conditions as may be imposed by the Secretary
for the effective and efficient implementation of this Act.
(b) CONTROL LIST.—In accordance with the proce-
dures specified in sections 5 and 11 of this Act, the Sec-
retary shall establish and maintain a list (hereinafter in
this Act referred to as the ‘‘Commerce Control List’’ or
‘‘Control List’’) stating license requirements for exports
of items under this Act.
(c) MILITARILY CRITICAL TECHNOLOGIES LIST.—
The Secretary of Defense shall bear primary responsibility
for establishing and maintaining the Militarily Critical
Technologies List (hereinafter in the Act referred to as
the MCTL) identifying equipment and technologies critical
to the design, development, test, production, stockpiling,
or use of weapons of mass destruction and other signifi-
cant military capabilities, including nuclear, biological and
chemical weapons, and manned and unmanned vehicles ca-
pable of delivering such weapons.
(d) RIGHT OF EXPORT.—No authority or permission
to export may be required under this Act, or under regula-
tions issued under this Act, except to carry out the policies
set forth in section 3 of this Act.
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(e) DELEGATION
OF AUTHORITY.—The President
may delegate the power, authority, and discretion con-
ferred upon him by this Act to such departments, agen-
cies, or officials of the Government as he may consider
appropriate, except that no authority under this Act may
be delegated to, or exercised by, any official of any depart-
ment or agency the head of which is not appointed by the
President, by and with the advice and consent of the
Senate.
(f) NOTIFICATION OF THE PUBLIC; CONSULTATION
WITH BUSINESS.—The Secretary shall keep the public
fully apprised of changes in export control policy and pro-
cedures instituted in conformity with this Act with a view
to encouraging trade. The Secretary shall meet regularly
with representatives of a broad spectrum of enterprises,
labor organizations, and citizens interested in or affected
by export controls, in order to obtain their views on United
States export control policy and the foreign availability of
items subject to controls.
(g) TECHNICAL ADVISORY COMMITTEES.—
(1) Upon his or her own initiative or upon writ-
ten request by representatives of a substantial seg-
ment of any industry which produces any items sub-
ject to export controls under this Act or being con-
sidered for such controls, the Secretary shall appoint
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technical advisory committees. Such technical advi-
sory committees shall advise the United States on all
aspects of controls imposed or proposed under this
Act. Each such committee shall consist of represent-
atives of United States industry and Government,
including the Department of Commerce and such
other departments and agencies as appropriate. The
Secretary shall permit the widest possible participa-
tion by the business community on the technical
advisory committees.
(2) Technical advisory committees established
under paragraph (1) shall advise and assist the Sec-
retary and any other department, agency, or official
of the Government of the United States to which the
President delegates authority under this Act, on ac-
tions designed to carry out the policies of this Act.
Such committees, where they have expertise in such
matters, shall be consulted on questions involving
(A) technical matters, (B) worldwide availability and
actual utilization of production technology, (C) li-
censing procedures which affect the level of export
controls applicable to any items, (D) revisions of the
Control List (as provided in subsection (b), including
proposed revisions of multilateral controls in which
the United States participates), (E) the issuance of
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regulations, (F) the impact and interpretation of ex-
isting regulations, (G) processes and procedures for
review of licenses and policy, and (H) any other
questions relating to actions designed to carry out
this Act. Nothing in this subsection shall prevent the
United States Government from consulting, at any
time, with any person representing industry or the
general public, regardless of whether such person is
a member of a technical advisory committee. Mem-
bers of the public shall be given a reasonable oppor-
tunity, pursuant to regulations prescribed by the
Secretary, to present evidence to such committees.
(3) Upon request of any member of any such
committee, the Secretary may, if the Secretary de-
termines it appropriate, reimburse such member for
travel, subsistence, and other necessary expenses in-
curred by such member in connection with the duties
of such member.
(4) Each such committee shall elect a chair-
man, and shall meet at least every three months at
the call of the chairman, unless the chairman deter-
mines, in consultation with the other members of the
committee, that such a meeting is not necessary to
achieve the purposes of this subsection. Each such
committee shall be terminated after a period of 2
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years, unless extended by the Secretary for addi-
tional periods of 2 years. The Secretary shall consult
each such committee on such termination or exten-
sion of that committee.
(5) To facilitate the work of the technical advi-
sory committees, the Secretary, in conjunction with
other departments and agencies participating in the
administration of this Act, shall disclose to each
such committee adequate information, consistent
with national security, pertaining to the reasons for
the export controls which are in effect or con-
templated for the items or policies for which that
committee furnishes advice. Information provided by
the technical advisory committees shall not be sub-
ject to disclosure under section 552 of title 5, United
States Code, and such information shall not be pub-
lished or disclosed unless the Secretary determines
that the withholding thereof is contrary to the
national interest.
(h) FEES.—No fee may be charged in connection
with the submission or processing of an export license
applications.
SEC. 5. NONPROLIFERATION, NATIONAL SECURITY, AND
FOREIGN POLICY CONTROL AUTHORITIES.
(a) AUTHORITY.—
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(1) In order to carry out the policies enumer-
ated in section 3 of this Act, the President may, in
accordance with the provisions of this section and
section 15(e), prohibit or curtail the export of any
item subject to the jurisdiction of the United States
or exported by any person subject to the jurisdiction
of the United States. The President may regulate
domestic and foreign conduct, consistent with the
policies of this Act. Such authority shall include, but
not be limited to, the authority to prohibit activity
such as financing, contracting, servicing or employ-
ment, to deny access to items in the United States
and abroad, to conduct audits of records and inspec-
tions of facilities, to compel reports, and to imple-
ment international commitments of the United
States with respect to the control of exports.
(2) Except as otherwise specified in this Act,
the authority contained in this Act shall be exercised
by the Secretary, in consultation with appropriate
departments and agencies.
(3) As directed by the President, annual policy
guidance shall be issued to provide detailed imple-
menting guidance to licensing officials in all appro-
priate departments and agencies.
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(4) To develop the annual policy guidance, ex-
port controls and other regulations to implement
policies contained in section 3 shall be reviewed an-
nually. This annual policy review shall include an
evaluation of benefits and costs, including economic
impact, of export controls. The review should in-
clude—
(A) an assessment by the Secretary of
Commerce at least 30 days in advance of deter-
minations to extend controls describing the eco-
nomic consequences of the controls during the
preceding 12 months, including estimates of
any lost United States exports and jobs;
(B) an assessment by the Secretary of
State at least 30 days in advance of determina-
tions to extend controls describing objectives of
the controls and the extent to which the con-
trols have attained those objectives over the
preceding 12 months;
(C) an assessment by the Secretary of De-
fense at least 30 days in advance of determina-
tions to extend controls describing the impact
export controls have had in the preceding 12
months on the national security of the United
States;
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(D) solicitation of public comments for
submission of such comments at least 60 days
in advance of determinations to extend controls;
and
(E) a systematic review by the Secretary of
the above in consultation with appropriate de-
partments and agencies.
(5) Based upon the review required by para-
graph (4) above, the Secretary, in consultation with
appropriate departments and agencies, shall deter-
mine at least annually whether the national interest
requires that he or she terminate unilateral controls
and regulations or maintain them for an additional
12 months. Unilateral controls imposed under
(b)(1)(B) of this section shall expire by operation of
law after one year from the most recent imposition
or renewal of such controls unless extended by the
Secretary based upon his or her findings consistent
with the criteria and other requirements of this Act.
Such findings shall be provided to the Congress pur-
suant to subsection (e)(2) of this section.
(b) CRITERIA.—
(1) Controls may be imposed, expanded or ex-
tended under this section only if the President deter-
mines that—
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(A) the control is essential to advancing
the nonproliferation, national security, or for-
eign policies of the United States provided in
section 3 above; and like-minded states have
agreed with the United States on the utility of
such controls in obtaining a shared objective
and procedures for implementing that objective;
or
(B) the control is essential to advancing
the nonproliferation, national security, or for-
eign policies of the United States provided in
section 3 above; and the objective of the control
is in the overall national interest of the United
States and cannot be attained by means other
than the control.
(2) The President should make the determina-
tion described in subparagraph (1)(B) above for the
purpose of imposing or expanding a unilateral con-
trol, only if—
(A) such controls are likely to make sub-
stantial progress toward achieving the intended
purpose of—
(i) changing, modifying or constrain-
ing the undesirable conduct or policies of
the target country or countries;
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(ii) denying access by the target coun-
try to controlled items from all sources;
(iii) establishing multilateral coopera-
tion to deny the target country access to
controlled items from all sources; or
(iv) denying exports or assistance that
significantly and directly contribute to the
proliferation of weapons, of mass destruc-
tion, terrorism, human rights abuses, or
regional instability;
(B) the proposed controls are compatible
with the foreign policy objectives of the United
States and with overall United States policy to-
ward the target country;
(C) the reaction of other countries to the
imposition or expansion of such export controls
by the United States is not likely to render the
controls ineffective in achieving the intended
purpose or to be counter-productive to United
States policy interests;
(D) the effect of the proposed controls on
the export performance of the United States,
the competitive position of the United States as
a supplier of items, or on the economic well-
being of individual United States companies
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and their employees and communities does not
exceed the benefit to the United States foreign
policy, nonproliferation, or national security in-
terests; and
(E) the United States has the ability to en-
force the proposed controls effectively.
(3) The President should make the determina-
tion described in subparagraph (1)(B) above for the
purpose of extending a control, only if—
(A) such controls are likely to continue to
make substantial progress toward achieving the
intended purpose of—
(i) changing, modifying or constrain-
ing the undesirable conduct or policies of
the target country or countries;
(ii) denying access by the target coun-
try to controlled items from all sources;
(iii) establishing multilateral coopera-
tion to deny the target country access to
controlled items from all sources; or
(iv) denying exports or assistance that
significantly and directly contribute to the
proliferation of weapons of mass destruc-
tion, terrorism, human rights abuses, or
regional instability;
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(B) the impact of the controls has been
compatible with the foreign policy objectives of
the United States and with overall United
States policy toward the target country;
(C) the reaction of other countries to the
imposition or expansion of such export controls
by the United States has not rendered the con-
trols ineffective in achieving the intended pur-
pose and have not been counter-productive to
United States policy interests;
(D) the effect of the proposed controls on
the export performance of the United States,
the competitive position of the United States as
a supplier of items, and the economic well-being
of individual United States companies and their
employees and communities has not exceeded
the benefit to the United States foreign policy,
nonproliferation, or national security interests;
and
(E) the United States has enforced the
controls effectively.
(c) CONSULTATION
WITH
INDUSTRY.—The Sec-
retary, in every possible instance, shall consult with and
seek advice from affected United States public, industries,
and technical advisory committees and seek public com-
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ment before the imposition, expansion, or extensions of
any export control under this section. Such consultation
shall include advice on the criteria set forth in subsection
(b) and such other matters as the Secretary considers ap-
propriate.
(d) CONSULTATION WITH OTHER COUNTRIES.—
When imposing, expanding, or extending export controls
under this section, the Secretary of State shall, in con-
sultation with appropriate departments and agencies and
at the earliest appropriate opportunity, consult with the
countries with which the United States maintains export
controls cooperatively and with such other countries as ap-
propriate to advise them of the reasons for the action and
to urge them to adopt similar controls.
(e) CONSULATIONS WITH THE CONGRESS.—
(1) The Secretary, in consultation with appro-
priate departments and agencies, shall keep the Con-
gress fully apprised of changes in export control pol-
icy and procedures pursuant to this Act. The Sec-
retary or his designates, in consultation with rep-
resentatives of other appropriate departments and
agencies shall consult with the Committee on For-
eign Affairs of the House of Representatives and the
Committee on Banking, Housing and Urban Affairs
of the Senate on changes in export control policy,
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procedures, and other developments related to this
Act.
(2) The Secretary may not impose, expand, or
extend unilateral export controls under this section
until the Secretary has submitted to the Congress a
report—
(A) specifying the purpose of the controls;
(B) specifying the determinations of the
Secretary described in subsection (b), the bases
for such determinations (or considerations), and
any possible adverse foreign policy consequences
of the controls;
(C) describing the nature, the subjects,
and the results of, or the plans for, the con-
sultation with industry and the interested pub-
lic pursuant to subsection (c) and with other
countries pursuant to subsection (d);
(D) specifying the nature and results of
any alternative means attempted to achieve the
objective of the control, or the reasons for im-
posing, expanding, or extending the controls
without attempting any such alternative means;
and
(E) describing the availability from other
countries of items comparable to the items sub-
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ject to the proposed export controls, and de-
scribing the nature and results of the efforts
made to secure the cooperation of foreign gov-
ernments in controlling the foreign availability
of such comparable goods or technology.
Such report shall also indicate how such controls will
further significantly the policies of the United States
as set forth in section 3 or will further its declared
international obligations.
(3) To the extent necessary to further the effec-
tiveness of the export controls, portions of a report
required by paragraph (2) may be submitted to the
Congress on a classified basis, and shall be subject
to the provisions of section 11(c) of this Act. Each
such report shall, at the same time it is submitted
to the Congress, also be submitted to the General
Accounting Office for the purpose of assessing the
report’s full compliance with the intent of this sub-
section.
(f) MULTILATERAL CONTROL REGIMES.—
(1) POLICY.—In order to carry out the policies
of section 3 and the criteria of section 5(b), the Sec-
retary of State, in consultation with appropriate de-
partments and agencies, should seek multilateral ar-
rangements that are intended to secure effective
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achievement of these policies and criteria and in so
doing also establish fairer and more predictable com-
petitive opportunities for United States exporters.
(2) STANDARDS FOR NATIONAL SYSTEMS.—In
the establishment and maintenance of multilateral
regimes, the Secretary of State, in consultation with
appropriate departments and agencies, shall take
steps to attain the cooperation of members in the ef-
fective implementation of export control systems.
Such systems should contain the following elements:
(A) National laws providing sufficient en-
forcement authorities, civil and criminal pen-
alties, and statutes of limitations sufficient to
deter potential violations and punish violators.
(B) A program to evaluate export license
applications that includes sufficient technical
expertise to assess the licensing status of ex-
ports and ensure the reliability of end users.
(C) An enforcement mechanism that pro-
vides authority for trained enforcement officers
to investigate and prevent illegal exports.
(D) A system of export control documenta-
tion to verify the movement of items.
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(E) Procedures for the coordination and
exchange of information concerning licensing,
end users, and enforcement.
(F) Adequate national resources devoted to
subparagraphs (A) through (E) of this sub-
section.
(3) 
STANDARDS
FOR
MULTILATERAL
RE-
GIMES.—In the establishment and maintenance of
multilateral regimes, the Secretary of State, in con-
sultation with appropriate departments and agen-
cies, shall seek, consistent with the policies of section
3 and the criteria of section 5(b), the following fea-
tures for the multilateral control regimes in which
the United States participates:
(A) FULL
MEMBERSHIP.—Achieve mem-
bership of all supplier countries whose policies
and activities are consistent with the objectives
and membership criteria of the multilateral ar-
rangement.
(B) EFFECTIVE ENFORCEMENT AND COM-
PLIANCE.—Promote enforcement and compli-
ance with the rules and guidelines of the mem-
bers of the regime through maintenance of an
effective control list.
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(C) PUBLIC
UNDERSTANDING.—Enhance
public understanding of each regime’s purpose
and procedures.
(D) EFFECTIVE IMPLEMENTATION PROCE-
DURES.—Achieve procedures for effective imple-
mentation of the regime rules and guidelines
through uniform and consistent interpretations
of export controls agreed to by the governments
participating in the regime.
(E) ENHANCED COOPERATION AMONG RE-
GIME MEMBERS.—Reach agreement to enhance
cooperation among members of the regime in
obtaining the agreement of governments outside
the regime to restrict the export of items con-
trolled by the regime, to establish an ongoing
mechanism in the regime to coordinate planning
and implementation of export control measures
related to such agreements, and to remove
items from the list if the control of such items
no longer serves the objectives of the members
of the regime.
(F) PERIODIC
HIGH-LEVEL
MEETINGS.—
Conduct periodic meetings of high-level rep-
resentatives of participating governments for
the purpose of coordinating export control poli-
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cies and issuing policy guidance to the regime
members.
(G) 
COMMON
LIST
OF
CONTROLLED
ITEMS.—Reach agreement on a common list of
items controlled by the regime.
(4) INCENTIVES FOR PARTNERSHIP.—Consist-
ent with the policies of this Act and consistent with
the objectives, rules and guidelines of the individual
regime—
(A) the Secretary, in consultation with ap-
propriate departments and agencies, may pro-
vide for exports free of validated license require-
ments to and among members of a multilateral
regime for items subject to controls under such
a multilateral regime; and
(B) the Secretary, in consultation with ap-
propriate departments and agencies, may adjust
licensing policies for access to items controlled
pursuant to this Act depending on a country or
other entity’s degree of adherence to the export
control policies of section 5.
(g) PUBLICATION OF ELEMENTS OF MULTILATERAL
CONTROL REGIMES.—Consistent with arrangements in
multilateral regimes, the United States shall publish the
following information:
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(1) Purpose(s) of the control regime.
(2) Member countries.
(3) Licensing policy.
(4) Items subject to controls together with all
public notes, understandings, and other aspects of
such agreement and all changes thereto.
(5) Target countries or regions (if any), target
end uses, and target end users (including projects of
concern).
(6) Rules of interpretation.
(7) Major policy actions.
(8) The rules and procedures of the regime for
establishing and modifying the above elements of the
regime and for reviewing export license applications
as provided for by the regime.
Subject to commitments required by multilateral regimes,
within 6 months after the date of the enactment of this
Act or thereafter within 2 months of joining or organizing
a new multilateral regime, the Secretary, in consultation
with appropriate departments and agencies, shall publish
the above information. In addition, the Secretary shall
publish changes in the above information within 2 months
of adoption of such changes by a regime.
(h) SEEKING MULTILATERAL SUPPORT FOR UNILAT-
ERAL CONTROLS.—For all unilateral controls, the Sec-
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retary of State, in consultation with appropriate depart-
ments and agencies, shall have a continuing duty to seek
support for such controls by other countries and by effec-
tive multilateral control regimes.
(i) REGULATION INDICATING NATURE OF UNILAT-
ERAL CONTROLS.—Regardless of the reason for control,
all unilateral controls shall be indicated as such by regula-
tion.
(j) IMPLEMENTATION.—
(1) NONPROLIFERATION.—
(A) COUNTRIES
PARTICIPATING
IN
CER-
TAIN AGREEMENTS.—The Secretary of State, in
consultation with appropriate departments and
agencies, shall be responsible for conducting ne-
gotiations with those countries participating in
the groups known as the Coordinating Commit-
tee, the Missile Technology Control Regime
(‘‘MTCR’’), the Australia Group, the Nuclear
Suppliers’ Group, and other regimes that may
be established, regarding their cooperation in
restricting the export of items in order to carry
out the policies set forth in section 3.
Such negotiations shall cover, among other issues,
which items should be subject to multilaterally
agreed export restrictions, and the implementation
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of the restrictions consistent with the principles in
this Act.
(B) OTHER COUNTRIES.—The Secretary of
State, in consultation with appropriate depart-
ments and agencies, shall be responsible for
conducting negotiations with countries and
groups of countries not referred to in subpara-
graph (A) regarding their cooperation in re-
stricting the export of items consistent with
purposes set forth in this Act.
(2) MISSILE
TECHNOLOGY.—The Secretary,
consistent with section 3, section 5(b), section 5(f),
and in consultation with appropriate departments
and agencies—
(A) shall, consistent with section 11(e), es-
tablish and maintain, as part of the Control
List, dual-use items on the MTCR Annex;
(B) may include, as part of the Control
List, items that would provide a material con-
tribution to the design, development, test, pro-
duction, stockpiling, or use of missile delivery
systems, which items are not included in the
MTCR Annex but which the United States pro-
poses to the other MTCR adherents for inclu-
sion in the MTCR Annex; and
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(C) shall require an individual validated li-
cense, consistent with MTCR arrangements,
for—
(i) any export of items on the list re-
ferred to under paragraph (2) to any coun-
try, except as provided for in subsection
(f)(4) of this section; and
(ii) any export of items that the ex-
porter knows is destined for a project or
facility for the design, development, or
manufacture of a missile in a country that
is not an MTCR adherent.
(3) CHEMICAL
AND
BIOLOGICAL
WEAPONS.—
The Secretary, consistent with section 3, section
5(b), section 5(f), and in consultation with appro-
priate departments and agencies—
(A) shall, consistent with section 11(e), es-
tablish and maintain, as part of the Control
List, dual-use items listed by the Australia
Group or by the Chemical Weapons Convention;
(B) may include, as part of the Control
List, items that would provide a material con-
tribution to the design, development, test, pro-
duction, stockpiling, or use of chemical or bio-
logical weapons, which items are not listed by
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the Australia Group but which the United
States proposes to the other Australia Group
adherents for inclusion in its list of controlled
items; and
(C) shall require an individual validated li-
cense, consistent with the arrangements in the
Australia Group and the Chemical Weapons
Convention, for—
(i) any export of items on the list re-
ferred to under paragraph (3) to any coun-
try, except as provided for in subsection
(f)(4) of this section; and
(ii) any export of items that the ex-
porter knows is destined for a project or
facility for the design, development, or
manufacture of a chemical or biological
weapon.
(4) INTERNATIONAL TERRORISM.—
(A) A validated license shall be required
for the export of items to a country if the Sec-
retary of State has made the following deter-
minations:
(i) The government of such country
has repeatedly provided support for acts of
international terrorism.
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(ii) The export of such items could
make a significant contribution to the mili-
tary potential of such country, including its
military logistics capability, or could en-
hance the ability of such country to sup-
port acts of international terrorism.
(B) The Secretary and the Secretary of
State shall notify the Committee on Foreign Af-
fairs of the House of Representatives and the
Committee on Banking, Housing, and Urban
Affairs and the Committee on Foreign Rela-
tions of the Senate at least 30 days before issu-
ing any validated license required by paragraph
(A).
(C) Each determination of the Secretary of
State under paragraph (A)(i), including each
determination in effect on the date of the enact-
ment of the Antiterrorism and Arms Export
Amendments Act of 1989 (December 12,
1989), shall be published in the Federal
Register.
(D) A determination made by the Sec-
retary of State under paragraph (A)(i) may not
be rescinded unless the President submits to
the Speaker of the House of Representatives
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and the chairman of the Committee on Bank-
ing, Housing, and Urban Affairs and the chair-
man of the Committee on Foreign Relations of
the Senate—
(i) before the proposed rescission
would take effect, a report certifying
that—
(I) there has been a fundamental
change in the leadership and policies
of the government of the country con-
cerned;
(II) that government is not sup-
porting acts of international terror-
ism; and
(III) that government has pro-
vided assurances that it will not sup-
port acts of international terrorism in
the future; or
(ii) at least 45 days before the pro-
posed rescission would take effect, a report
justifying the rescission and certifying
that—
(I) the government concerned has
not provided any support for inter-
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national terrorism during the preced-
ing 6-month period; and
(II) the government concerned
has provided assurances that it will
not support acts of international ter-
rorism in the future.
(5) HUMAN RIGHTS AND CRIME CONTROL.—
(A) Crime control and detection instru-
ments and equipment shall be approved for ex-
port by the Secretary only pursuant to a vali-
dated export license. Notwithstanding any other
provision of the Act—
(i) any determination of the Secretary
of what items shall be included on the Con-
trol List established pursuant to section
11(e) as a result of the export restriction
imposed under this subsection shall be
made with the concurrence of the Sec-
retary of State; and
(ii) any determination of the Sec-
retary to approve or deny an export license
application to export crime control and de-
tection instruments or equipment shall be
made with the concurrence of the Sec-
retary of State, except that, if the Sec-
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retary does not agree with the Secretary of
State with respect to any determination
under subparagraph (i) or (ii), the matter
shall be referred to the President for reso-
lution.
(B) The provisions of this subsection shall
not apply to exports to Canada, countries which
are members of the European Union, Norway,
Iceland, Japan, Australia, or New Zealand, or
to such countries as the President shall des-
ignate consistent with the purposes of this sub-
section and section 502B of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2304).
(k) UNFAIR
IMPACT
ON
UNITED
STATES
EX-
PORTER.—
(1) POLICY.—It is the policy of the United
States that no United States exporter should be
placed at a competitive disadvantage vis-a-vis its
commercial competitors because of export control
policies or practices unless relief from such controls
would create a significant risk to the foreign policy,
nonproliferation, or national security interests of the
United States.
(2) RELIEF FROM EXPORT CONTROLS.—A per-
son may petition the Secretary for relief from cur-
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rent export control requirements on any one or more
of the following grounds and the Secretary may con-
duct evaluations for relief on his or her own initia-
tive based upon any one or more of the following
grounds:
(A) FOREIGN
AVAILABILITY.—The con-
trolled item is available in fact in sufficient
quantity and comparable quality to the pro-
posed countries of export or end users from
sources outside the United States so that the
requirement for a validated license is or would
be ineffective in achieving the purpose of the
control.
(B) INEFFECTIVE
CONTROLS.—The con-
trolled items are so widely available in the
United States that the Government cannot en-
force the controls effectively, unless the Sec-
retary has reliable evidence that the controls
have been effective in denying such target des-
tination access to the controlled items originat-
ing in the United States.
(C) COMPETITIVE DISADVANTAGE.—
(i) Differences between the export
control policies or procedures of the United
States and that of governments of foreign