112
(4) APPLICABILITY.—This subsection shall apply
only with respect to barter agreements entered into
after September 30, 1979.
(i) UNPROCESSED RED CEDAR.—
(1) PROHIBITION.—No unprocessed western red
cedar (Thuja plicata) logs harvested from State or
Federal lands may be exported from the United
States.
(2) RED CEDAR NOT AN AGRICULTURAL COM-
MODITY.—Unprocessed western red cedar logs shall
not be considered to be an agricultural commodity for
purposes of subsection (g).
(3) DEFINITION.—As used in this subsection, the
term ‘‘unprocessed western red cedar’’ means red
cedar timber which has not been processed into—
(A) lumber of American Lumber Standards
Grades of Number 3 dimension or better, or Pa-
cific Lumber Inspection Bureau Export R-List
Grades of Number 3 common or better;
(B) chips, pulp, and pulp products;
(C) veneer and plywood;
(D) poles, posts, or pilings cut or treated
with preservative for use as such and not in-
tended to be further processed; or
(E) shakes and shingles.
113
(j) EFFECT OF CONTROLS ON EXISTING CONTRACTS.—
(1) WESTERN RED CEDAR.—The export restric-
tions contained in subsection (i) and any export con-
trols imposed under this section shall not affect—
(A) any contract to harvest unprocessed
western red cedar from State lands which was
entered into before October 1, 1979, and the per-
formance of which would make the red cedar
available for export; or
(B) any contract to harvest unprocessed red
cedar which was entered into after September 30,
1979, and before October 1, 1982, and the per-
formance of which would make the red cedar
available for export, to the extent such exports
were permitted under section 7(i) of the Export
Administration Act of 1979.
(2) OTHER COMMODITIES.—Any export controls
imposed under this section on any agricultural com-
modity (including fats, oils, and animal hides and
skins), or on any forest product or fishery product,
shall not affect any contract to export entered into be-
fore the date on which such controls are imposed. For
purposes of this paragraph, the term ‘‘contract to ex-
port’’ includes, but is not limited to, an export sales
agreement and an agreement to invest in an enter-
114
prise which involves the export of commodities or
technology.
(k) OIL EXPORTS FOR USE BY UNITED STATES MILI-
TARY FACILITIES.—For purposes of subsection (d), and for
purposes of any export controls imposed under this title,
shipments of crude oil, refined petroleum products, or par-
tially refined petroleum products from the United States
for use by the Department of Defense or United States-sup-
ported installations or facilities shall not be considered to
be exports.
SEC. 108. FOREIGN BOYCOTTS.
(a) PROHIBITIONS AND EXCEPTIONS.—
(1) PROHIBITIONS.—In order to carry out the
policies set forth in section 103(10), 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 agreeing to take any of the
following actions with intent to comply with, further,
or support any boycott fostered or imposed by a for-
eign country against a country 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
regulation:
115
(A) Refusing, or requiring any other person
to refuse, to do business with or in the boycotted
country, with any business concern organized
under the laws of the boycotted country, with
any national or resident of the boycotted coun-
try, or with any other person, pursuant to an
agreement with, a requirement of, or a request
from or on behalf of the boycotting country. The
mere absence of a business relationship with or
in the boycotted country with any business con-
cern organized under the laws of the boycotted
country, with any national or resident of the
boycotted country, or with any other person, does
not indicate the existence of the intent required
to establish a violation of regulations issued to
carry out this subparagraph.
(B) Refusing, or requiring any other person
to refuse, to employ or otherwise discriminating
against any United States person on the basis of
race, religion, sex, or national origin of that per-
son or of any owner, officer, director, or em-
ployee of such person.
(C) Furnishing information with respect to
the race, religion, sex, or national origin of any
116
United States person or of any owner, officer, di-
rector, or employee of such person.
(D) Furnishing information about whether
any person has, has had, or proposes to have any
business relationship (including a relationship
by way of sale, purchase, legal or commercial
representation, shipping or other transport, in-
surance, investment, or supply) with or in the
boycotted country, with any business concern or-
ganized under the laws of the boycotted country,
with any national or resident of the boycotted
country, or with any other person that is known
or believed to be restricted from having any busi-
ness relationship with or in the boycotted coun-
try. Nothing in this paragraph 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 a contribu-
tion to, or is otherwise associated with or in-
volved in the activities of any charitable or fra-
ternal organization which supports the boycotted
country.
(F) Paying, honoring, confirming, or other-
wise implementing a letter of credit which con-
117
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 application
of this paragraph, be obligated to pay or other-
wise 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 commod-
ities or services from the boycotted country
or commodities produced or services pro-
vided 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 com-
modities to the boycotted country on a car-
rier 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
118
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 precaution-
ary 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, insurers,
suppliers of services to be performed within the
boycotting country, or specific commodities
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 re-
lating to shipments or transshipment of exports
to the boycotted country, to any business concern
of or organized under the laws of the boycotted
119
country, or to any national or resident of the
boycotted country;
(E) compliance by an individual or agree-
ment by an individual to comply with the 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 the coun-
try with respect to such person’s activities exclu-
sively therein, and such regulations may contain
exceptions for such resident complying with the
laws or regulations of the foreign country govern-
ing imports into such country of trademarked,
trade named, or similarly specifically identifi-
able products, or components of products for such
person’s own use, including the performance of
contractual services within that country, as may
be defined by such regulations.
(3) LIMITATION
ON
EXCEPTIONS.—Regulations
issued pursuant to paragraphs (2)(C) and (2)(F)
120
shall not provide exceptions from paragraphs (1)(B)
and (1)(C).
(4) ANTITRUST AND CIVIL RIGHTS LAWS NOT AF-
FECTED.—Nothing in the subsection may be construed
to supersede or limit the operation of the antitrust or
civil rights laws of the United States.
(5) EVASION.—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 (expressed or implied by a
course of conduct, including a pattern of responses)
otherwise prohibited, which are not within the intent
of such exceptions.
(b) EMERGENCY CONTROLS.—
(1) REGULATIONS.—In addition to the regula-
tions issued pursuant to subsection (a), regulations is-
sued under section 106 shall implement the policies
set forth in section 103(10).
(2) REPORTS
BY
UNITED
STATES
PERSONS.—
Such regulations shall require that any United States
person receiving a request for the furnishing of infor-
121
mation, the entering into or implementing of agree-
ments, or the taking of any other action referred to
in section 103(10) shall report that fact to the Sec-
retary, together with such other information concern-
ing such request as the Secretary may require, for
such action as the Secretary 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 com-
plied with such request. Any report filed pursuant to
this paragraph shall be made available promptly for
public inspection and copying, except that informa-
tion regarding the quantity, description, and value of
any commodities or technology to which such report
relates may be kept confidential if the Secretary de-
termines that disclosure thereof would place the Unit-
ed States person involved at a competitive disadvan-
tage. The Secretary shall periodically transmit sum-
maries of the information contained in such reports
to the Secretary of State for such action as the Sec-
retary of State, in consultation with the Secretary,
considers appropriate for carrying out the policies set
forth in section 103(10).
122
(c) PREEMPTION.—The provisions of this section and
the regulations issued under this section shall preempt any
law, rule, or regulation which—
(1) is a law, rule, or regulation of any of the sev-
eral States or the District of Columbia, or any of the
territories or possessions of the United States, or of
any governmental subdivision thereof; and
(2) pertains to participation in, compliance
with, implementation of, or the furnishing of infor-
mation regarding restrictive trade practices or boy-
cotts fostered or imposed by foreign countries against
other countries.
SEC. 109. PROCEDURES FOR PROCESSING EXPORT LICENSE
APPLICATIONS; OTHER INQUIRIES.
(a) PRIMARY RESPONSIBILITY OF THE SECRETARY.—
(1) IN GENERAL.—All export license applications
required under this title shall be submitted by the ap-
plicant to the Secretary. All determinations with re-
spect to any such application shall be made by the
Secretary, subject to the procedures provided in this
section.
(2) ROLE OF SECRETARIES OF DEFENSE
AND
ENERGY.—(A) Notwithstanding any
other provision of this section, the Sec-
retaries of Defense and Energy are au-
123
thorized to review any proposed export
of commodities or technology that is con-
trolled under section 105(a)(1) or con-
trolled for national security purposes
under section 106. Whenever—
(i) the Secretary of Defense or the
Secretary of Energy determines that
the export of such commodities or
technology will directly and signifi-
cantly enable a country or end user
to acquire the capability to develop,
produce, stockpile, use, or deliver
weapons of mass destruction, or
(ii) the Secretary of Defense de-
termines that the export of such com-
modities or technology will directly
and significantly contribute to the
military capability of a country so as
to prove detrimental to the national
security of the United States or its al-
lies,
the Secretary of Defense or the Secretary
of Energy (as the case may be) shall rec-
ommend to the President that such ex-
port be disapproved.
124
(B)(i) Notwithstanding any other pro-
vision of this section, the Secretary of De-
fense and the Secretary of Energy shall
determine, in consultation with the Sec-
retary, and confirm in writing the types
and categories of transactions which
should be reviewed by the Secretary of
Defense or the Secretary of Energy in
order to make a determination referred
to in subparagraph (A). Whenever a li-
cense for export or other authority with-
in such type or category is received by
the Secretary, the Secretary shall notify
the Secretary of Defense or the Secretary
of Energy (as the case may be) of such re-
quest, and the Secretary may not issue
any license or other authority pursuant
to such request until the Secretary is no-
tified by the Secretary of Defense or En-
ergy under subclause (II) or (III) or noti-
fied by the President under clause (ii).
The Secretary of Defense or the Sec-
retary of Energy (as the case may be)
shall carefully consider any notification
submitted by the Secretary pursuant to
125
this paragraph and, not later than 30
days after notification of the request,
shall—
(I) make a recommendation to the
President referred to in subpara-
graph (A);
(II) notify the Secretary that he
or she would recommend approval
subject to specified conditions; or
(III) recommend to the Secretary
that the export of the commodities or
technology be approved.
(ii) Whenever the Secretary of De-
fense or the Secretary of Energy makes a
recommendation to the President under
subparagraph (A), the Secretary shall
also submit his or her recommendation to
the President on the request to export if
the Secretary differs with the Secretary
of Defense or the Secretary of Energy.
The President shall notify the Secretary
of his decision on the matter before the
end of the 50-day period set forth in sub-
section (c). If the President notifies the
Secretary, after receiving a recommenda-
126
tion from the Secretary of Defense or the
Secretary of Energy, that the President
disapproves such export, no license or
other authority may be issued for the ex-
port to such country of the commodities
or technology involved.
(iii) If the Secretary of Defense or the
Secretary of Energy fails to make a rec-
ommendation or notification under this
paragraph within the 30-day period spec-
ified in clause (i), the Secretary shall ap-
prove or deny the request for a license or
other authority to export without such
recommendation or notification.
ƒ(2)≈ (3) REGULATIONS.—In regulations that
carry out this section, the Secretary shall describe the
procedures required by this section, the responsibil-
ities of the Secretary and of other departments and
agencies in reviewing applications, the rights of the
applicant, and the extent of any multilateral review
of a given license application.
ƒ(3)≈ (4) CALCULATION OF TIME PERIODS.—In
calculating the processing times set forth in this sec-
tion, the Secretary shall use calendar days, except
that if the final day for a required action falls on a
127
weekend or holiday, that action shall be taken no
later than the following business day.
ƒ(4)≈ (5) CONSIDERATION OF RELIABILITY OF
PARTIES.—In reviewing applications for validated ex-
port licenses, the Secretary may in each case consider
the reliability of the parties to the proposed export. In
making such an evaluation, the Secretary may con-
sider all sources of information, including intelligence
information. The consideration of intelligence infor-
mation in connection with the evaluation of the reli-
ability of parties shall not authorize the direct or in-
direct disclosure of classified information or sources
and methods of gathering classified information.
(b) ACTION
BY OTHER DEPARTMENTS
AND AGEN-
CIES.—
(1) REFERRALS.—(A) At the direction of the
President, the Secretary shall refer appropriate li-
cense applications required under section 105 or 106
to appropriate departments and agencies of the Gov-
ernment to make recommendations and provide infor-
mation to the Secretary on such applications.
(B) The President shall restrict referrals of li-
cense applications to Government departments and
agencies that possess particular expertise and infor-
128
mation that is relevant to the licensing process and
is not possessed by the Secretary.
(C) To assist the Secretary in export licensing
determinations, the Director of Central Intelligence
shall collect all intelligence information regarding
controlled end users and shall have such information
accessible in computerized form at the Central Intel-
ligence Agency no later than December 31, 1994.
Each department or agency of the Government in pos-
session of intelligence information regarding con-
trolled end users shall provide that information to the
Central Intelligence Agency not later than September
30, 1994.
(2) ORGANIZATION OF REVIEWING AGENCIES.—
Departments and agencies reviewing license applica-
tions shall organize their resources and units to plan
for the prompt and expeditious internal dissemina-
tion of export license applications, if necessary, so as
to avoid delays in responding to the Secretary’s re-
quest for information and recommendations.
(3) REQUESTS FOR ADDITIONAL INFORMATION.—
Within 5 days after an export license application is
referred to a department or agency under this sub-
section, the agency or department shall specify to the
Secretary all information that is not in the applica-
129
tion that would be required to respond to the referral
of the application, and the Secretary shall, pursuant
to subsection (d)(1)(C), request such information from
the applicant. The time that may elapse between the
date the information is requested from the applicant
and the date the information is received by the Sec-
retary shall not be included in calculating the time
periods prescribed in this section.
(c) ACTION BY THE SECRETARY.—Subject to sub-
section (d)(4), ƒ30 days≈ 50 days after the date of formal
filing with the Secretary of an export license application,
a license for the transaction specified in the application
shall become valid and effective and the commodities or
technology involved are authorized for export or reexport
pursuant to such license, unless—
(1) the application has been otherwise approved
by the Secretary, in which case it shall be valid and
effective according to the terms of the approval; or
(2) the application has been denied by the Sec-
retary under this section and the applicant has been
so informed.
(d) PROCEDURES FOR PROCESSING EXPORT LICENSE
APPLICATIONS.—
130
(1) INITIAL SCREENING.—Not more than 10 days
after the date on which any export license application
is submitted to the Secretary, the Secretary shall—
(A) send the applicant an acknowledgment
of the receipt of the application and the date of
the receipt;
(B) submit to the applicant a written de-
scription of the procedures required by this sec-
tion, the responsibilities of the Secretary with re-
spect to the application, and the rights of the ap-
plicant;
(C) on the basis of information the Sec-
retary has, including information provided to
the Secretary under subsection (b)(3), return the
application without action if the application is
improperly completed or if additional informa-
tion is required, with sufficient information to
permit the application to be properly resubmit-
ted; and
(D) determine whether it is necessary to
submit the application to a multilateral review
process pursuant to an export control regime
and, if so, inform the applicant of such require-
ment.
131
(2) REFERRAL.—(A) If, pursuant to criteria es-
tablished by the President, the Secretary is to refer an
export license application to any other department or
agency for a recommendation under subsection (b)(1),
the Secretary shall, within 2 days after receiving the
application, refer the application concurrently to all
such departments or agencies, transmitting the appli-
cation electronically whenever possible. A department
or agency reviewing an export license application re-
ferred by the Secretary shall have ƒ10 days≈ 30
days in which to submit to the Secretary its rec-
ommendations on the application. Any department or
agency which does not submit its recommendations
within that ƒ10-day period≈ 30-day period shall
be deemed by the Secretary to have no objection to the
approval of such application.
(B) A recommendation that the Secretary deny
a validated license shall include a statement of rea-
sons for the recommendation that are consistent with
the provisions of this title, and shall cite both the stat-
utory and the regulatory basis for the recommenda-
tion.
(3) INTERAGENCY COMMITTEE.—An interagency
committee may be established by the President for the
purpose of resolving disputes among departments and
132
agencies on export license applications under this
title. Such committee shall be chaired by the Sec-
retary. The procedures followed by such interagency
committee shall provide—
(A) deadlines for decisions within the inter-
agency committee consistent with the duty of the
Secretary to reach his or her final decision on an
application within ƒ30 days≈ 50 days after
the date of filing of the license application;
(B) that a department or agency dissenting
from the position of the Secretary shall have the
burden to bring the issue in writing to the next
level of review provided within the interagency
committee and may only dissent on the basis of
the criteria set forth in section 105(c)(1)(D) or
section 106(a)(4); and
(C) that a department or agency that fails
to make a timely escalation of a disputed matter
shall be deemed to have no objection to the deci-
sion of the Secretary.
(4) ACTIONS BY THE SECRETARY.—(A) When a
referral of a license application to other departments
or agencies is not required, the Secretary shall issue
a license or notify the applicant of the intent to deny
within 10 days after receiving the application.
133
(B) If an application is to be denied because the
export would be made to a controlled end user, no re-
ferral to other departments or agencies is required,
and the applicant shall be informed of the reason for
the denial.
(5) ACTION UPON DENIAL.—In cases in which
the Secretary has determined that a license applica-
tion should be denied, the applicant shall be informed
in writing, not later than 3 days after such deter-
mination is made, of—
(A) the determination;
(B) the statutory and regulatory basis for
the proposed denial;
(C) the reasons for such denial, with ref-
erences to the criteria set forth in section 105,
106, or 107 (as the case may be);
(D) what, if any, modifications in, or re-
strictions on, the commodities or technology for
which the license was sought would allow the ex-
port or reexport of the commodities or technology
to be compatible with controls imposed under
this title;
(E) which officers and employees of the De-
partment of Commerce who are familiar with the
application will be made reasonably available to
134
the applicant for considerations with regard to
such modifications or restrictions, if appro-
priate;
(F) to the extent consistent with the na-
tional security and foreign policy of the United
States, the specific considerations which led to
the determination to deny the application; and
(G) the availability of appeal procedures.
The Secretary shall allow the applicant not less than
30 days to respond to the Secretary’s determination
before the license application is finally denied.
(e) TIME LIMIT EXTENSION.—If required for
national security reasons, the President may
increase the time periods set forth in sub-
sections (a), (c), and (d) to not more than 2
times the number of days in each time period,
for not more than 4 percent of the export li-
cense applications filed with the Secretary
during any calendar year.
ƒ(e)≈ (f) RECORDKEEPING.—The Secretary shall
make and keep records of all advice and recommendations
given by Federal departments and agencies, and decisions
made by the Department of Commerce, in connection with
any export license application or revision of an export li-
cense application under this title, including the factual and
135
analytical basis of the advice, recommendations, or deci-
sions.
ƒ(f)≈ (g) CHANGES IN REQUIREMENTS FOR APPLICA-
TIONS.—Except as provided in subsection (d), in any case
in which, after an export license application is submitted,
the Secretary changes the requirements for such a license
application, the Secretary may request appropriate addi-
tional information of the applicant, but the Secretary may
not return the application to the applicant without action
because it fails to meet the changed requirements.
ƒ(g)≈ (h) APPEALS.—The Secretary shall establish
appropriate procedures for any applicant to appeal to the
Secretary the denial of an export license application under
this title.
ƒ(h)≈ (i) OTHER INQUIRIES.—
(1) CLASSIFICATION REQUESTS.—In any case in
which the Secretary receives a written request for the
proper classification of a commodity or technology on
the control index, the Secretary shall, not more than
10 working days after receiving the request, inform
the person making the request of the proper classifica-
tion.
(2) APPLICABILITY OF REQUIREMENTS.—In any
case in which the Secretary receives a written request
for information about the applicability of export li-
136
cense requirements under this title to a proposed
transaction or series of transactions, the Secretary
shall, not more than 30 days after receiving the re-
quest, reply with that information to the person mak-
ing the request.
(3) PUBLICATION
OF
CLASSIFICATION
DETER-
MINATIONS.—The Secretary shall, to the greatest ex-
tent practicable, taking into account restrictions on
the disclosure of classified or confidential information,
publish in the Federal Register classification deter-
minations made under paragraph (1).
ƒ(i)≈ (j) REPORTS ON LICENSE APPLICATIONS.—
(1) QUARTERLY REPORT.—Not later than 180
days after the date of the enactment of this Act, and
not later than the end of each 3-month period there-
after, the Secretary shall submit to the Committee on
Foreign Affairs and the Committee on Armed
Services of the House of Representatives and to the
Committee on Banking, Housing, and Urban Affairs
and the Committee on Armed Services of
the Senate a report listing all applications for vali-
dated licenses under section 105 or 106 on
which action was completed during the preceding 3-
month period ƒand which required a period longer
than the period permitted under subsection (c) or
137
(d)(4), as the case may be, before notification on a de-
cision to approve or deny the application was sent to
the applicant≈.
(2) INFORMATION ON LICENSE APPLICATIONS.—
With regard to each application, each listing shall
identify—
(A) the application case number;
(B) the value of the commodities or tech-
nology to which the application relates;
(C) the country of destination of the com-
modities or technology;
(D) the date on which the application was
received by the Secretary;
(E) the date on which the Secretary ap-
proved or denied the application; and
(F) the date on which the notification of ap-
proval or denial of the application was sent to
the applicant.
ƒ(3) INTRODUCTION TO REPORT.—With respect
to an application referred to any other department or
agency which did not submit or has not submitted its
recommendations on the application within the pe-
riod permitted under subsection (d)(2) to submit such
recommendations, the listing shall also include—
138
ø(A) the office responsible for processing
the application and the officer responsible for
the office; and
ø(B) the period of time that elapsed before
the recommendations were submitted or that
has elapsed since referral of the application, as
the case may be.¿
SEC. 110. VIOLATIONS.
(a) CRIMINAL PENALTIES.—
(1) VIOLATIONS BY AN INDIVIDUAL.—Any indi-
vidual who knowingly violates or conspires to or at-
tempts to violate any provision of this title or any
regulation, license, or order issued under this title
shall be fined not more than 5 times the value of the
exports involved or $500,000, whichever is greater, or
imprisoned not more than 10 years, or both.
(2) VIOLATIONS BY A PERSON OTHER THAN AN
INDIVIDUAL.—Any person other than an individual
who knowingly violates or conspires to or attempts to
violate any provision of this title or any regulation,
license, or order issued under this title shall be fined
not more than 10 times the value of the exports in-
volved or $1,000,000, whichever is greater.
(b) FORFEITURE OF PROPERTY INTEREST AND PRO-
CEEDS.—
139
(1) FORFEITURE.—Any person who is convicted
under subsection (a)(1) or (2) shall, in addition to
any other penalty, forfeit to the United States—
(A) any of that person’s interest in, security
of, claim against, or property or contractual
rights of any kind in the commodities or tangible
items that were the subject of the violation;
(B) any of that person’s interest in, security
of, claim against, or property or contractual
rights of any kind in tangible property that was
used in the export or attempt to export that was
the subject of the violation; and
(C) any of that person’s property constitut-
ing, or derived from, any proceeds obtained di-
rectly or indirectly as a result of the violation.
(2) PROCEDURES.—The procedures in any for-
feiture under this subsection, and the duties and au-
thority of the courts of the United States and the At-
torney General with respect to any forfeiture action
under this subsection or with respect to any property
that may be subject to forfeiture under this subsection,
shall be governed by the provisions of section 1963 of
title 18, United States Code.
(c) CIVIL PENALTIES; ADMINISTRATIVE SANCTIONS.—
140
(1) CIVIL PENALTIES.—The Secretary may im-
pose a civil penalty of not more than $250,000 for
each violation of this title or any regulation, license,
or order issued under this title, either in addition to
or in lieu of any other liability or penalty which may
be imposed, except that the civil penalty for each such
violation of regulations issued under section 108 may
not exceed $50,000.
(2) DENIAL OF EXPORT PRIVILEGES.—The Sec-
retary may deny the export privileges of any person,
including suspending or revoking the authority of any
person to export or receive United States-origin com-
modities or technology, on account of any violation of
this title or any regulation, license, or order issued
under this title.
(d) PAYMENT OF CIVIL PENALTIES.—The payment of
any civil penalty imposed under subsection (c) may be
made a condition, for a period not exceeding 1 year after
the penalty has become due but has not been paid, to the
granting, restoration, or continuing validity of any export
license, permission, or privilege granted or to be granted
to the person upon whom such penalty is imposed. In addi-
tion, the payment of any civil penalty imposed under sub-
section (c) may be deferred or suspended in whole or in
part for a period of time no longer than any probation pe-
141
riod (which may exceed 1 year) that may be imposed upon
such person. Such deferral or suspension shall not operate
as a bar to the collection of the penalty in the event that
the conditions of the suspension, deferral, or probation are
not fulfilled.
(e) REFUNDS.—Any amounts realized from the forfeit-
ure of any property interest or proceeds under subsection
(b), and any amount paid in satisfaction of any civil pen-
alty imposed under subsection (c) shall be covered into the
Treasury as a miscellaneous receipt. The head of the depart-
ment or agency concerned may, in his or her discretion,
refund any such civil penalty imposed under subsection (c),
within 2 years after payment, on the ground of a material
error of fact or law in the imposition of the penalty. Not-
withstanding section 1346(a) of title 28, United States
Code, no action for the refund of any such penalty may
be maintained in any court.
(f) EFFECT OF OTHER CONVICTIONS.—
(1) DENIAL OF EXPORT PRIVILEGES.—Any per-
son convicted of a violation of—
(A) this title or the Export Administration
Act of 1979 (or any regulation, license, or order
issued under this title or that Act),
142
(B) any regulation, license, or order issued
under the International Emergency Economic
Powers Act,
(C) section 793, 794, or 798 of title 18,
United States Code,
(D) section 371 or 1001 of title 18, United
States Code, if in connection with the export of
commodities or technology controlled under this
title, or defense articles or defense services con-
trolled under the Arms Export Control Act,
(E) section 4(b) of the Internal Security Act
of 1950 (50 U.S.C. 783(b)), or
(F) section 38 of the Arms Export Control
Act,
may, at the discretion of the Secretary, be denied ex-
port privileges under this title for a period of up to
10 years from the date of the conviction. The Sec-
retary may also revoke any export license under this
title in which such person had an interest at the time
of the conviction.
(2) RELATED PERSONS.—The Secretary may ex-
ercise the authority under paragraph (1) with respect
to any person related, through affiliation, ownership,
control, or position of responsibility, to any person
convicted of any violation of a law set forth in para-
143
graph (1), upon a showing of such relationship with
the convicted person, after providing notice and op-
portunity for a hearing.
(g) STATUTE OF LIMITATIONS.—Any proceeding in
which a civil penalty or other administrative sanction
(other than a temporary denial order) is sought under sub-
section (c) may not be instituted more than 5 years after
the date of the alleged violation, except that, in any case
in which a criminal indictment alleging a violation of this
title is returned within the time limits prescribed by law
for the institution of such action, the statute of limitations
for bringing a proceeding to impose such a civil penalty
or other administrative sanction under this title shall, upon
the return of the criminal indictment, be tolled against all
persons named as a defendant. The tolling of the statute
of limitations shall continue for a period of 6 months from
the date a conviction is entered or the indictment is dis-
missed.
(h) VIOLATIONS DEFINED BY REGULATION.—Nothing
in this section shall limit the power of the Secretary to de-
fine by regulation violations under this title.
(i) OTHER AUTHORITIES.—Nothing in subsection (c),
(d), (f), or (g) limits—
(1) the availability of other administrative or ju-
dicial remedies with respect to violations of this title,
144
or any regulation, order, or license issued under this
title;
(2) the authority to compromise and settle ad-
ministrative proceedings brought with respect to any
such violation; or
(3) the authority to compromise, remit, or miti-
gate seizures and forfeitures pursuant to section 1(b)
of title VI of the Act of June 15, 1917 (22 U.S.C.
401(b)).
(j) PRIVATE RIGHT OF ACTION.—Any person—
(1) against whom an act of discrimination de-
scribed in section 108(a)(1)(B) is committed, or
(2) who, on account of a violation of the regula-
tions issued pursuant to section 108(a), loses an op-
portunity to engage in a commercial venture pursu-
ant to a contract, joint venture, or other commercial
transaction, including an opportunity to bid or ten-
der an offer for a contract,
may bring an action in an appropriate district court of
the United States against the United States person commit-
ting the violation, for recovery of actual damages incurred
on account of such act of discrimination or lost oppor-
tunity. In any such action the court may award punitive
damages. An action may be brought under this subsection
against a United States person whether or not the United
145
States person has been determined under this section to
have violated the regulations issued pursuant to section
108(a) on account of which the action is brought.
SEC. 111. CONTROLLING PROLIFERATION ACTIVITY.
(a) ESTABLISHMENT OF PROLIFERATION LISTS.—
(1) ESTABLISHMENT OF CHEMICAL AND BIOLOGI-
CAL WEAPONS CONTROL LIST UNDER THIS TITLE.—
(A) IN GENERAL.—The Secretary, ƒin con-
sultation with the Secretary of State, the Sec-
retary of Defense, and the heads of other appro-
priate departments and agencies,≈ shall establish
and maintain a list of commodities and tech-
nology, which shall include those commodities
and technology controlled pursuant to multilat-
eral export control regimes such as the Australia
Group—
(i) that would directly and substan-
tially assist a foreign government, group,
entity, or project in acquiring the capabil-
ity to develop, produce, stockpile, or deliver
chemical or biological weapons; and
(ii) the licensing of which would be ef-
fective in barring the acquisition or en-
hancement of such capability.
146
(B) ROLE OF OTHER DEPARTMENTS
AND AGENCIES.—The Secretary of De-
fense and the heads of other appro-
priate 
departments 
and 
agencies
shall identify goods and technology
for inclusion on the list referred to in
subparagraph (A). Those items which
the Secretary and the Secretary of
Defense concur shall be included on
the list shall comprise the list. If the
Secretary and the Secretary of De-
fense are unable to concur on such
items, as determined by the Sec-
retary, the Secretary of Defense may,
within 20 days after receiving notifi-
cation of the Secretary’s determina-
tion, refer the matter to the President
for resolution. The Secretary of De-
fense shall notify the Secretary of any
such referral. The President shall, not
later than 20 days after such referral,
notify the Secretary of his determina-
tion with respect to the inclusion of
such items on the list. Failure of the
Secretary of Defense to notify the
147
President or the Secretary, or failure
of the President to notify the Sec-
retary, in accordance with this para-
graph, shall be deemed by the Sec-
retary to constitute concurrence in
the implementation of the actions
proposed by the Secretary regarding
the inclusion of such items on the list.
ƒ(B)≈ (C) REQUIREMENT FOR VALIDATED
LICENSES.—Subject to the provisions of this title,
the Secretary shall require a validated license for
any export of commodities or technology on the
list established under subparagraph (A) to any
country of concern.
ƒ(C)≈ (D) COUNTRY
OF
CONCERN.—For
purposes of subparagraph (B), the term ‘‘country
of concern’’ means any country other than—
(i) a country with whose government
the United States has entered into a bilat-
eral or multilateral arrangement for the
control of commodities or technology on the
list established under subparagraph (A);
and
(ii) such other countries as the Sec-
retary of State, in consultation with the
148
Secretary and the Secretary of Defense,
shall designate consistent with the purposes
of this section.
(2) ESTABLISHMENT OF MISSILE TECHNOLOGY
CONTROL LIST UNDER THIS TITLE.—
(A) The Secretaryƒ, in consultation with
the Secretary of State, the Secretary of Defense,
and the heads of other appropriate departments
and agencies≈—
(i) shall establish and maintain a list
of all dual use commodities and technology
on the MTCR Annex; and
(ii) may include on that list any com-
modities or technology that would provide a
direct and significant impact on the devel-
opment of missile delivery systems.
(B) ROLE OF OTHER DEPARTMENTS
AND AGENCIES.—The Secretary of De-
fense and the heads of other appro-
priate 
departments 
and 
agencies
shall identify goods and technology
for inclusion on the list referred to in
subparagraph (A). Those items which
the Secretary and the Secretary of
Defense concur shall be included on
149
the list shall comprise the list. If the
Secretary and the Secretary of De-
fense are unable to concur on such
items, as determined by the Sec-
retary, the Secretary of Defense may,
within 20 days after receiving notifi-
cation of the Secretary’s determina-
tion, refer the matter to the President
for resolution. The Secretary of De-
fense shall notify the Secretary of any
such referral. The President shall, not
later than 20 days after such referral
notify the Secretary of his determina-
tion with respect to the inclusion of
such items on the list. Failure of the
Secretary of Defense to notify the
President or the Secretary, or failure
of the President to notify the Sec-
retary, in accordance with this para-
graph, shall be deemed by the Sec-
retary to constitute concurrence in
the implementation of the actions
proposed by the Secretary regarding
the inclusion of such items on the list.
150
ƒ(B)≈ (C) REQUIREMENT OF INDIVIDUAL
VALIDATED LICENSES.—Subject to the provisions
of this title, the Secretary shall require an indi-
vidual validated license for—
(i) any export of commodities or tech-
nology on the list established under sub-
paragraph (A) to any country; and
(ii) any export of commodities or tech-
nology that the exporter knows is destined
for a project or facility for the design, devel-
opment, or manufacture of a missile in a
country that is not an MTCR adherent.
ƒ(C)≈ (D) POLICY
OF
DENIAL
OF
LI-
CENSES.—(i) Licenses under subparagraph (B)
should in general be denied if the ultimate con-
signee of the commodities or technology is a fa-
cility in a country that is not an MTCR adher-
ent and the facility is designed to develop or
build missiles.
(ii) Licenses under subparagraph (B) shall
be denied if the ultimate consignee of the com-
modities or technology is a facility in a country
the government of which has been determined
under section 106(i)(1) to have repeatedly pro-
151
vided support for acts of international terror-
ism.
ƒ(D)≈ (E) DEFINITION.—For purposes of
this paragraph, the term ‘‘MTCR adherent’’
means a country that participates in the MTCR
or that, pursuant to an international under-
standing to which the United States is a party,
controls MTCR equipment or technology in ac-
cordance with the criteria and standards set
forth in the MTCR.
(b) ESTABLISHMENT OF LISTS UNDER ARMS EXPORT
CONTROL ACT.—
(1) 
CHEMICAL
AND
BIOLOGICAL
WEAPONS
LIST.—Section 81 of the Arms Export Control Act (22
U.S.C. 2798) is amended to read as follows:
‘‘SEC. 81. ESTABLISHMENT OF CHEMICAL AND BIOLOGICAL
WEAPONS CONTROL LIST
‘‘(a) IN GENERAL.—The Secretary of State, ƒin con-
sultation with the Secretary of Defense, and the heads of
other appropriate departments and agencies,≈ with the
concurrence of the Secretary of Defense, shall
establish and maintain, as part of the United States Muni-
tions List, a list of items, which shall include those items
controlled pursuant to multilateral export control regimes,
such as the Australia Group—
152
‘‘(1) that would directly and substantially assist
a foreign government, group, entity, or project in ac-
quiring the capability to develop, produce, stockpile,
or deliver chemical or biological weapons;
‘‘(2) the licensing of which would be effective in
barring the acquisition or enhancement of such capa-
bility; and
‘‘(3) the export of which is not subject to control
under section 111(a)(1) of the Export Act of 1994.
‘‘(b) REQUIREMENT FOR VALIDATED LICENSES.—The
Secretary of State shall require a validated license for any
export of items on the list established under subsection (a).
‘‘(c) DEFINITIONS.—For purposes of this section, the
terms ‘multilateral export control regime’ and ‘Australia
Group’ have the meanings given those terms in section 116
of the Export Act of 1994.’’.
(2) MISSILE TECHNOLOGY CONTROL LIST.—Sec-
tion 71 of the Arms Export Control Act (22 U.S.C.
2797) is amended to read as follows:
‘‘SEC. 71. LICENSING.
‘‘(a) ESTABLISHMENT OF MISSILE TECHNOLOGY CON-
TROL LIST.—The Secretary of State, ƒin consultation with
the Secretary of Defense and the heads of other appropriate
departments and agencies,≈ with the concurrence of
the Secretary of Defense, shall establish and main-
153
tain a list of all items, which shall include those items listed
on the MTCR Annex, that would provide a direct and sig-
nificant impact on the development of missile delivery sys-
tems and the export of which is not subject to control under
section 111(a)(2) of the Export Act of 1994.
‘‘(b) REQUIREMENT OF VALIDATED LICENSES.—The
Secretary shall require a validated license for—
‘‘(1) any export of items on the list established
under subsection (a) to any country; and
‘‘(2) any export of items that the exporter knows
is destined for a project or facility for the design, de-
velopment, or manufacture of a missile in a country
that is not an MTCR adherent.
‘‘(c) POLICY OF DENIAL OF LICENSES.—
‘‘(1) EXPORTS TO OTHER THAN MTCR ADHER-
ENTS.—Licenses under subsection (b) shall be denied
if the ultimate consignee of the items is a facility in
a country that is not an MTCR adherent and the fa-
cility is designed to develop or build missiles.
‘‘(2) EXPORTS TO TERRORIST COUNTRIES.—Li-
censes under subsection (b) shall be denied if the ulti-
mate consignee of the items is a facility in a country
the government of which has been determined under
section 106(i)(1) of the Export Act of 1994 to have re-
154
peatedly provided support for acts of international
terrorism.’’.
(c) SANCTIONS
FOR ACTIVITIES SUPPORTING
THE
PROLIFERATION OF CHEMICAL AND BIOLOGICAL WEAPONS
AND MISSILES.—
(1) VIOLATIONS BY UNITED STATES PERSONS.—
(A) If the President determines that a United States
person, on or after the date of the enactment of this
Act, with requisite knowledge—
(i) exports or transfers—
(I) any item on the list established
under subsection (a)(1) or (a)(2), or
(II) any item on the list established
under section 71(a) or 81(a) of the Arms
Export Control Act,
in violation of United States law,
(ii) conspires to or attempts to engage in
such export or transfer, or
(iii) facilitates such export or transfer by
any other person,
then the President shall impose, for a period of 2
years, the sanctions described in subparagraph (B) on
the entities described in paragraph (3).
(B) The sanctions referred to in subparagraph
(A) are the following:
155
(i) All export licenses under this title for
items controlled under section 105, or for items
controlled under section 106 that meet the re-
quirements of section 105(a)(1)(A) or (B), and
all export licenses under the Arms Export Con-
trol Act for items on the United States Muni-
tions List, shall be denied to the sanctioned en-
tity.
(ii) The United States Government shall not
procure, or enter into any contract for the pro-
curement of, any services, commodities, tech-
nology, or other products from or produced by
the sanctioned entity.
(C) In the case of a determination made under
subparagraph (A), the President may pursue any
penalty provided in section 38(c) of the Arms Export
Control Act.
(2) VIOLATIONS BY FOREIGN PERSONS.—(A) If
the President determines that a foreign person, on or
after the date of the enactment of this Act, with req-
uisite knowledge contributed to the efforts of any gov-
ernment, group, entity, or project to use, design, de-
velop, produce, stockpile, or otherwise acquire chemi-
cal or biological weapons or missiles—
(i) through the export or transfer of—
156
(I) any item on the MTCR Annex,
whether or not of United States origin, or
(II) any item on the list established
under subsection (a)(1) of this section or
section 81(a) of the Arms Export Control
Act, whether or not of United States origin,
(ii) by conspiring or attempting to engage
in such export or transfer or,
(iii) by facilitating any export or transfer
described in clause (i) by any other person,
then the President shall impose, for a period of 2
years, the sanctions described in subparagraph (B) on
the entities described in paragraph (3).
(B) The sanctions referred to in subparagraph
(A) are the following:
(i) All export licenses under this title for
items controlled under section 105, or items con-
trolled under section 106 that meet the require-
ments of section 105(a)(1)(A) or (B), and all ex-
port licenses under the Arms Export Control Act
for items on the United States Munitions List,
shall be denied to the sanctioned entity.
(ii) The United States Government shall not
procure, or enter into any contract for the pro-
curement of, any services, commodities, tech-
157
nology, or other products from or produced by
the sanctioned entity.
(iii) Imports of Ωall productsæ Ωprod-
uctsæ from or produced by the sanctioned en-
tity shall be prohibited.
(3) ENTITIES AGAINST WHICH SANCTIONS ARE
IMPOSED.—The President shall impose sanctions
under paragraphs (1) and (2) on—
(A) the person that committed the conduct
that is the subject of the determination giving
rise to the sanctions;
(B) any successor of a person or entity de-
scribed in subparagraph (A);
(C) any foreign person or United States
person that is a parent or subsidiary of a person
or entity described in subparagraph (A), if that
parent or subsidiary with requisite knowledge
assisted in the activities which are the basis of
that determination; and
(D) any foreign person or United States
person that is an affiliate of a person or entity
described in subparagraph (A), if that affiliate
with requisite knowledge assisted in the activities
which were the basis of that determination and
158
if that affiliate is controlled in fact by that per-
son or entity.
For purposes of this section, any person or entity de-
scribed in subparagraph (A), (B), (C), or (D) shall be
referred to as a ‘‘sanctioned entity’’.
(4) EXEMPTION
OF
CERTAIN
EXPORTS
FROM
SANCTIONS.—The requirement in paragraph (1)(B)(i)
and (2)(B)(i) that licenses to export items controlled
under section 105 or 106 be denied shall not apply
to items which require individual validated licenses
solely by virtue of the imposition of controls under the
Enhanced Proliferation Control Initiative regulations
set forth in section 778.7(c) of title 15, Code of Fed-
eral Regulations.
(5) EXEMPTION FOR MTCR ADHERENTS.—
(A) EXEMPTION.—Paragraphs (1) and (2)
do not apply with respect to any export or trans-
fer—
(i) that is authorized by the laws of an
MTCR adherent, if such authorization is
not obtained by misrepresentation or fraud;
or
(ii) to an end user in a country that
is an MTCR adherent.
159
(B) DEFINITION.—For purposes of this
paragraph, the term ‘‘MTCR adherent’’ has the
meaning given that term in subsection (a)(2)(D).
(6) CONSULTATION WITH AND ACTIONS BY FOR-
EIGN GOVERNMENT OF JURISDICTION.—
(A) 
CONSULTATIONS.—If 
the 
President
makes a determination described in paragraph
(2) with respect to a foreign person, the Congress
urges the President to initiate consultations im-
mediately with the government with primary ju-
risdiction over that foreign person with respect
to the imposition of sanctions pursuant to this
subsection.
(B) ACTIONS BY GOVERNMENT OF JURISDIC-
TION.—In order to pursue such consultations
with that government, the President may delay
imposition of sanctions pursuant to this sub-
section for up to 90 days. Following these con-
sultations, the President shall impose sanctions
unless the President determines and certifies to
the Congress that that government has taken spe-
cific and effective actions, including appropriate
penalties, to terminate the involvement of the for-
eign person in the activities described in para-
graph (2). The President may delay the imposi-
160
tion of sanctions for up to an additional 90 days
if the President determines and certifies to the
Congress that that government is in the process
of taking the actions described in the preceding
sentence.
(C) REPORT TO CONGRESS.—Not later than
90 days after making a determination under
paragraph (2), the President shall submit to the
Committee on Foreign Relations and the Com-
mittee on Governmental Affairs of the Senate
and the Committee on Foreign Affairs of the
House of Representatives a report on the status
of consultations with the appropriate government
under this paragraph, and the basis for any de-
termination under subparagraph (B) that such
government has taken specific and effective ac-
tions.
(7) EFFECT OF ENFORCEMENT ACTIONS BY RE-
GIME ADHERENTS.—
(A) EXEMPTION FROM SANCTIONS.—Sanc-
tions set forth in paragraph (1) or (2) may not
be imposed under this subsection on a person
with respect to acts described in either such
paragraph or, if such sanctions are in effect
against a person on account of such acts, such
161
sanctions shall be terminated, if the government
of a regime adherent other than the United
States is taking judicial or other enforcement ac-
tion against that person with respect to such
acts, or that person has been found by the gov-
ernment of a regime adherent to be innocent of
wrongdoing with respect to such acts.
(B) REGIME
ADHERENT
DEFINED.—For
purposes of subparagraph (A), a ‘‘regime adher-
ent’’ is a country that is a member of a multilat-
eral regime that controls the export or transfer
giving rise to the sanctions, or that, pursuant to
an international understanding to which the
United States is a party, controls the export or
transfer in accordance with the criteria and
standards set forth in the regime.
(8) REQUISITE KNOWLEDGE DEFINED.—For pur-
poses of this subsection, the term ‘‘requisite knowl-
edge’’ means situations in which a person ‘‘knows’’,
as ‘‘knowing’’ is defined in section 104 of the Foreign
Corrupt Practices Act of 1977 (15 U.S.C. 78dd–2).
(9) FOREIGN PERSON DEFINED FOR CERTAIN EX-
PORTS.—(A) For purposes of any determination
under paragraph (2)(A) with respect to an export or
transfer of an item on the MTCR Annex, the term
162
‘foreign person’, in addition to the meaning set forth
in section 116(13), means, in the case of countries
with nonmarket economies (other than former mem-
bers of the Warsaw Pact)—
(i) all activities of the government of any
such country relating to the development or pro-
duction of any missile equipment or technology;
and
(ii) all activities of that government affect-
ing the development or production of electronics,
space systems or equipment, and military air-
craft.
(B) As used in subparagraph (A), the term ‘‘mis-
sile equipment or technology’ means those items listed
in category I or II of the MTCR Annex.
(d) SANCTIONS AGAINST COUNTRIES FOR USE
OF
CHEMICAL OR BIOLOGICAL WEAPONS.—
(1) DETERMINATION.—
(A IN GENERAL.—Whenever persuasive in-
formation becomes available to the executive
branch indicating the substantial possibility
that, on or after the date of the enactment of this
Act, the government of a foreign country has
made substantial preparation to use or has used
chemical or biological weapons in violation of
163
international law or has used lethal chemical or
biological weapons against its own nationals, the
President shall, within 60 days after the receipt
of such information by the executive branch, de-
termine whether that government, on or after
such date of enactment, has used chemical or bio-
logical weapons in violation of international
law, or has used lethal chemical or biological
weapons against its own nationals.
(B) MATTERS
TO
BE
CONSIDERED.—In
making the determination under subparagraph
(A), the President shall consider the following:
(i) All physical and circumstantial
evidence available bearing on the possible
use of chemical or biological weapons.
(ii) All information provided by al-
leged victims, witnesses, and independent
observers.
(iii) The extent of the availability of
the weapons in question to the purported
user.
(iv) All official and unofficial state-
ments bearing on the possible use of such
weapons.
164
(v) Whether, and to what extent, the
government in question is willing to honor
a request from the Secretary General of the
United Nations to grant timely access to a
United Nations fact-finding team to inves-
tigate the possibility of chemical or biologi-
cal weapons use or to grant such access to
other legitimate outside parties.
(2) DETERMINATION TO BE REPORTED TO CON-
GRESS.—Upon making a determination under para-
graph (1), the President shall promptly report that
determination to the Congress. If the determination is
that a foreign government has used such weapons as
described in that paragraph, the report shall specify
the sanctions to be imposed pursuant to paragraph
(4).
(3) CONGRESSIONAL REQUESTS; REPORT.—
(A) REQUEST.—The Chairman of the Com-
mittee on Foreign Relations of the Senate (upon
consultation with the ranking minority member
of such committee) or the Chairman of the Com-
mittee on Foreign Affairs of the House of Rep-
resentatives (upon consultation with the ranking
minority member of such committee) may at any
time request the President to consider whether a
165
particular foreign government, on or after the
date of the enactment of this Act, has used chem-
ical or biological weapons in violation of inter-
national law or has used lethal chemical or bio-
logical weapons against its own nationals.
(B) REPORT TO CONGRESS.—Not later than
60 days after receiving such a request, the Presi-
dent shall provide to the Chairman of the Com-
mittee on Foreign Relations of the Senate and
the Chairman of the Committee on Foreign Af-
fairs of the House of Representatives a written
report on the information held by the executive
branch which is pertinent to the issue of whether
the specified government, on or after the date of
the enactment of this Act, has used chemical or
biological weapons in violation of international
law or has used lethal chemical or biological
weapons against its own nationals. The report
under this subparagraph shall contain an analy-
sis of each of the items enumerated in paragraph
(1)(B).
(4) MANDATORY SANCTIONS FOR USE OF CHEMI-
CAL OR BIOLOGICAL WEAPONS.—The following sanc-
tions shall be imposed for a minimum of 2 years in
the event the President makes an affirmative deter-
166
mination under paragraph (1) with respect to the
government of a foreign country:
(A) FOREIGN
ASSISTANCE.—The United
States Government shall terminate assistance to
that country under the Foreign Assistance Act of
1961, except for urgent humanitarian assistance
and food or other agricultural commodities or
products.
(B) ARMS SALES.—The United States Gov-
ernment shall—
(i) terminate sales to that country
under the Arms Export Control Act of any
defense articles, defense services, or design
and construction services; and
(ii) terminate and deny licenses for the
export to that country of any item on the
United States Munitions list.
(C) ARMS SALES FINANCING.—The United
States Government shall terminate all foreign
military financing for that country under the
Arms Export Control Act.
(D) DENIAL OF UNITED STATES GOVERN-
MENT
CREDIT
OR
OTHER
FINANCIAL
ASSIST-
ANCE.—The United States Government shall
deny to that country any credit, credit guaran-
167
tees, or other financial assistance by any depart-
ment, agency, or instrumentality of the United
States Government, including the Export-Import
Bank of the United States.
(E) EXPORTS OF NATIONAL SECURITY-SEN-
SITIVE ITEMS.—The authorities of this title shall
be used to prohibit the export to that country of
any commodities or technology controlled or pro-
hibited for export under section 106(i).
∆(F) IMPORTS.—There shall be a prohibi-
tion on the importation into the United States
of goods that are the growth, produce, or manu-
facture of that country in an amount equal to or
greater than the dollar value of exports prohib-
ited under subparagraph (E).«
Ω(F) IMPORTS.—There shall be a
prohibition on the importation into
the United States of goods that are
the growth, produce, or manufacture
of that country. The President shall
determine the type and volume of im-
ports to be prohibited, taking into
consideration the volume of exports
prohibited under subparagraph (E).æ
168
(5) ADDITIONAL SANCTIONS IF CERTAIN CONDI-
TIONS NOT MET.—Unless, within 3 months after mak-
ing a determination under paragraph (1) with re-
spect to the government of a foreign country, the
President determines and certifies, in writing, to the
Congress that—
(A) the government is no longer using chem-
ical or biological weapons in violation of inter-
national law or using lethal chemical or biologi-
cal weapons against its own nationals,
(B) the government has provided reliable as-
surances that it will not, in the future, engage in
any such activities, and
(C) the government is willing to allow on-
site inspections by United Nations observers or
other internationally recognized, impartial ob-
servers, or other reliable means exist, to ensure
that government is not using chemical or biologi-
cal weapons in violation of international law
and is not using lethal chemical or biological
weapons against its own nationals,
then the President, after consultation with the Con-
gress, shall impose on that country for a period of at
least 2 years the sanctions set forth in at least 3 of
subparagraphs (A) through (F) of paragraph (6).
169
(6) ADDITIONAL SANCTIONS FOR USE OF CHEMI-
CAL
OR
BIOLOGICAL
WEAPONS.—The sanctions re-
ferred to in paragraph (5) are the following:
(A) MULTILATERAL
DEVELOPMENT
BANK
ASSISTANCE.—The United States Government
shall oppose, in accordance with section 701 of
the International Financial Institutions Act (22
U.S.C. 262d), the extension of any loan or finan-
cial or technical assistance to the foreign country
by international financial institutions.
(B) BANK LOANS.—The United States Gov-
ernment shall prohibit any United States bank
from making any loan or providing any credit
to the government of that country, except for
loans or credits for the purpose of purchasing
food or other agricultural commodities or prod-
ucts.
(C) FURTHER RESTRICTIONS.—(i) The au-
thorities of this title shall be used to prohibit ex-
ports to that country of all items (except for
those items described in section 114(k)).
(ii) Restrictions shall be imposed on the im-
portation into the United States of goods (which
may include petroleum or any petroleum prod-
170
uct) that are the growth, product, or manufac-
ture of that country.
(D) DIPLOMATIC
RELATIONS.—The Presi-
dent shall use his constitutional authorities to
downgrade or suspend diplomatic relations be-
tween the United States and the government of
that country.
(E) 
PRESIDENTIAL
ACTION
REGARDING
AVIATION.—
(i)(I) The President is authorized to
notify the government of that country of his
intention to suspend the authority of foreign
air carriers owned or controlled by the gov-
ernment of that country to engage in for-
eign air transportation to or from the Unit-
ed States.
(II) Within 10 days after the date of
notification 
of 
a 
government 
under
subclause (I), the Secretary of Transpor-
tation shall take all steps necessary to sus-
pend at the earliest possible date the author-
ity of any foreign air carrier owned or con-
trolled, directly or indirectly, by that gov-
ernment to engage in foreign air transpor-
tation to or from the United States, not-
171
withstanding any agreement relating to air
services.
(ii)(I) The President may direct the
Secretary of State to terminate any air
service agreement between the United States
and that country, in accordance with the
provisions of that agreement.
(II) Upon termination of an agreement
under this clause, the Secretary of Trans-
portation shall take such steps as may be
necessary to revoke at the earliest possible
date the right of any foreign air carrier
owned or controlled, directly or indirectly,
by the government of that country to engage
in foreign air transportation to or from the
United States.
(iii) The Secretary of Transportation
may provide for such exceptions from
clauses (i) and (ii) as the Secretary consid-
ers necessary to provide for emergencies in
which the safety of an aircraft or its crew
or passengers is threatened.
(iv) For purposes of this subparagraph,
the terms ‘‘air transportation’’, ‘‘air car-
rier’’, ‘‘foreign air carrier’’, and ‘‘foreign
172
air transportation’’ have the meanings
given those terms in section 101 of the Fed-
eral Aviation Act of 1958 (49 U.S.C. App.
1301).
(e) REMOVAL OF SANCTIONS.—
(1) FOR VIOLATIONS UNDER SUBSECTION (c).—
The President shall remove the sanctions imposed
under paragraph (1) or (2) of subsection (c) if the
President determines and so certifies to the Congress,
after the end of the 12-month period beginning on the
date on which the sanctions were initially imposed,
that—
(A) reliable information indicates that—
(i) the United States person with re-
spect to which the determination was made
under subsection (c)(1) has ceased all activi-
ties that gave rise to the sanctions; or
(ii) the foreign person with respect to
which the determination was made under
subsection (c)(2) has ceased to contribute to
the efforts of any government, group, entity,
or project to use, design, develop, produce,
stockpile, or otherwise acquire chemical or
biological weapons or missiles; and
173
(B) the President has received reliable as-
surances from that United States person or for-
eign person that such person will not, in the fu-
ture, perform any of the actions described in sub-
section (c)(1) or (2) (as the case may be).
(2) FOR VIOLATIONS UNDER SUBSECTION (d).—
The President shall remove the sanctions imposed
with respect to a country under paragraph (4) or (6)
of subsection (d) if the President determines and so
certifies to the Congress, after the end of the 12-month
period beginning on the date on which such sanctions
were initially imposed, that—
(A) the government of that country has pro-
vided reliable assurances that it will not use
chemical or biological weapons in violation of
international law and will not use lethal chemi-
cal or biological weapons against its own nation-
als;
(B) the government is not making prepara-
tions to use chemical or biological weapons in
violation of international law or to use lethal
chemical or biological weapons against its own
nationals;
(C) the government is willing to allow on-
site inspections by United Nations observers or
174
other internationally recognized, impartial ob-
servers to verify that it is not making prepara-
tions to use chemical or biological weapons in
violation of international law or to use lethal
chemical or biological weapons against its own
nationals, or other reliable means exist to verify
that it is not making such preparations; and
(D) the government is making restitution to
those affected by any use of chemical or biologi-
cal weapons in violation of international law or
by any use of lethal chemical or biological weap-
ons against its own nationals.
Ω(3) AUTHORITY
TO
REVOKE
IMPORT
SANCTIONS
IN
CERTAIN
CIRCUMSTANCES.—
The President may revoke any import
sanction imposed under subsection (c) or
(d) if the President determines, as a re-
sult of applicable international dispute
settlement proceedings, that the imposi-
tion of such sanctions is inconsistent
with international legal obligations of the
United States and that it is appropriate
under the circumstances to comply with
such obligations.æ
175
(f) WAIVERS FOR VIOLATIONS UNDER SUBSECTION
(c).—
(1) WAIVER.—The President may waive the im-
position of sanctions under paragraph (1) or (2) of
subsection (c) with respect to a product or service if
the President certifies to the Congress that—
(A) the product or service is essential to the
national security of the United States; and
(B) the sanctioned entity is a sole source
supplier of the product or service, the product or
service is not available from any alternative reli-
able supplier, and the need for the product or
service cannot be met in a timely manner by im-
proved manufacturing processes or technological
developments.
(2) ADDITIONAL
WAIVER.—(A) The President
may waive the imposition of any sanction under sub-
section (c)(2) if the President determines such waiver
is essential to the national security of the United
States.
(B) If the President decides to apply the waiver
described in subparagraph (A), the President shall so
notify the Congress not less than 20 days before issu-
ing the waiver. Such notification shall include a re-
port fully articulating the rationale and cir-
176
cumstances which led the President to exercise the
waiver authority.
(3) EXCEPTIONS.—The President shall not apply
the sanction under subsection (c)(2) prohibiting the
importation of the products of a sanctioned entity—
(A) in the case of procurement of defense ar-
ticles or defense services—
(i) under existing contracts or sub-
contracts, including the exercise of options
for production quantities to satisfy require-
ments essential to the national security of
the United States;
(ii) if the President determines that the
entity to which the sanctions would be ap-
plied is a sole source supplier of the defense
articles and services, that the defense arti-
cles or services are essential to the national
security of the United States, and that al-
ternative sources are not readily or reason-
ably available; or
(iii) if the President determines that
such articles or services are essential to the
national security of the United States under
defense coproduction agreements or Pro-
177
grams of Cooperation of the North Atlantic
Treaty Organization;
(B) to products or services provided under
contracts entered into before the date on which
the President publishes his intention to impose
the sanctions; or
(C) to—
(i) spare parts;
(ii) components 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 or technology essential
to United States products or production.
(g) WAIVERS
OF VIOLATIONS UNDER SUBSECTION
(d).—
(1) CRITERIA FOR WAIVER.—The President may
waive the application of any sanction imposed with
respect to a country under paragraph (4) or (6) of
subsection (d)—
(A) if—
178
(i) in the case of any sanction other
than a sanction specified in subsection
(d)(4)(F) or (d)(6)(C)(ii) (relating to im-
port restrictions) or (d)(6)(D) (relating to
the downgrading or suspension of diplo-
matic relations), the President determines
and certifies to the Congress that such waiv-
er is essential to the national security inter-
ests of the United States, and the President
notifies the Committee on Foreign Relations
of the Senate and the Committee on Foreign
Affairs of the House of Representatives of
his determination and certification at least
15 days before the waiver takes effect, in ac-
cordance with the procedures applicable to
reprogramming notifications under section
634A of the Foreign Assistance Act of 1961;
or
(ii) in the case of any sanction speci-
fied in subsection (d)(4)(F) or (d)(6)(C)(ii)
(relating to import restrictions), the Presi-
dent determines and certifies to the Con-
gress that such waiver is essential to the na-
tional security interests of the United
States, and the President notifies the Com-
179
mittee on Finance of the Senate and the
Committee on Ways and Means and the
Committee on Foreign Affairs of the House
of Representatives of his determination and
certification at least 15 days before the
waiver takes effect; or
(B) if the President determines and certifies
to the Congress that there has been a fundamen-
tal change in the leadership and policies of the
government of that country, and if the President
notifies the Congress at least 20 days before the
waiver takes effect.
(2) REPORT.—In the event that the President de-
cides to exercise the waiver authority provided in
paragraph (1) with respect to a country, the Presi-
dent’s notification to the Congress under such para-
graph shall include a report fully articulating the ra-
tionale and circumstances which led the President to
exercise that waiver authority, including a descrip-
tion of the steps which the government of that country
has taken to satisfy the conditions set forth in sub-
paragraphs (A) through (D) of subsection (e)(2).
(h) CONTRACT SANCTITY.—
(1) SANCTIONS NOT APPLIED TO EXISTING CON-
TRACTS.—(A) A sanction described in subparagraph
180
(D), (E), or (F) of subsection (d)(4) or in any of sub-
paragraphs (A) through (C) of subsection (d)(6) shall
not apply to any activity pursuant to any contract
or international agreement entered into before the
date of the presidential determination under sub-
section (d)(1) unless the President determines, on a
case-by-case basis, that to apply such sanction to that
activity would prevent the performance of a contract
or agreement that would have the effect of assisting a
country in using chemical or biological weapons in
violation of international law or in using lethal
chemical or biological weapons against its own na-
tionals.
(B) The same restrictions of section 114(l) (relat-
ing to contract sanctity) which are applicable to ex-
ports prohibited under this title shall apply to exports
prohibited under subsection (d)(4)(E) or (d)(6)(C)(i).
For purposes of this subparagraph, any contract or
agreement the performance of which (as determined
by the President) would have the effect of assisting a
foreign government in using chemical or biological
weapons in violation of international law or in using
chemical or biological weapons against its own na-
tionals shall be treated as constituting a breach of the
peace that poses a serious and direct threat to the
181
strategic interest of the United States, within the
meaning of subparagraph (A) of section 114(l)(2).
(2) SANCTIONS
APPLIED
TO
EXISTING
CON-
TRACTS.—The sanctions described in subparagraphs
(A), (B), and (C) of subsection (d)(4) shall apply to
contracts, agreements, and licenses without regard to
the date the contract or agreement was entered into
or the license was issued (as the case may be), except
that such sanctions shall not apply to any contract
or agreement entered into or license issued before the
date of the presidential determination under sub-
section (d)(1) if the President determines that the ap-
plication of such sanction would be detrimental to the
national security interests of the United States.
(i) PROTECTION OF CLASSIFIED INFORMATION.—To
the extent practicable, reports submitted under this section
should be based on unclassified information. Portions of
such reports may be classified.
SEC. 112. ADMINISTRATIVE AND JUDICIAL REVIEW.
(a) APPLICABILITY.—
(1) EXEMPTIONS FROM ADMINISTRATIVE PROCE-
DURE.—Except as provided in this section, sections
551 and 553 through 559 of title 5, United States
Code, do not apply to the functions exercised under
this title.
182
(2) JUDICIAL REVIEW.—(A) Subject to subpara-
graphs (B) and (C) and except as otherwise provided
in this section, actions under this title shall be subject
to judicial review under chapter 7 of title 5, United
States Code.
(B) Any discretionary determination of whether
a commodity or technology should or should not be on
the control index shall not be subject to judicial re-
view.
(C) An action to obtain judicial review under
this subsection may be brought in the appropriate
United States district court.
(b) PROCEDURES RELATING TO CIVIL PENALTIES AND
SANCTIONS.—
(1) ADMINISTRATIVE
PROCEDURES.—Any ad-
ministrative sanction imposed under section 110(c)
may be imposed only after notice and opportunity for
an agency hearing on the record in accordance with
sections 554 through 557 of title 5, United States
Code.
(2) AVAILABILITY OF CHARGING LETTER.—Any
charging letter or other document initiating adminis-
trative proceedings for the imposition of sanctions for
violations of the regulations issued under section
183
108(a) shall be made available for public inspection
and copying.
(c) COLLECTION.—If any person fails to pay a civil
penalty imposed under section 110(c), the Secretary may
ask the Attorney General to bring a civil action in an ap-
propriate district court to recover the amount imposed (plus
interest at currently prevailing rates from the date of the
final order).
(d) IMPOSITION OF TEMPORARY DENIAL ORDERS.—
(1) GROUNDS FOR IMPOSITION.—In any case in
which there is reasonable cause to believe that a per-
son is engaged in or is about to engage in any act
or practice which constitutes or would constitute a
violation of this title, or any regulation, order, or li-
cense issued under this title, or in any case in which
a criminal indictment has been returned against a
person alleging a violation of this title or any of the
statutes listed in section 110(f), the Secretary may,
without a hearing, issue an order temporarily deny-
ing that person’s United States export privileges
(hereafter in this subsection referred to a ‘‘temporary
denial order’’). A temporary denial order may be ef-
fective for no longer than 180 days, but may be re-
newed by the Secretary, following notice and an op-
184
portunity for a hearing, for additional periods of not
more than 180 days each.
(2) ADMINISTRATIVE APPEALS.—The person or
persons subject to the issuance or renewal of a tem-
porary denial order may appeal the issuance or re-
newal of the temporary denial order, supported by
briefs and other material, to an administrative law
judge who shall, within 15 working days after the ap-
peal is filed, issue a decision affirming, modifying, or
vacating the temporary denial order. The temporary
denial order shall be affirmed if it is shown that—
(A) there is reasonable cause to believe that
the person subject to the order is engaged in or
is about to engage in any act or practice which
constitutes or would constitute a violation of this
title, or any regulation, order, or license issued
under this title, or
(B) a criminal indictment has been re-
turned against the person subject to the order al-
leging a violation of this title or any of the stat-
utes listed in section 110(f).
The decision of the administrative law judge shall be
final unless, within 10 working days after the date of
the administrative law judge’s decision, an appeal is
filed with the Secretary. On appeal, the Secretary
185
shall either affirm, modify, reverse, or vacate the deci-
sion of the administrative law judge by written order
within 10 working days after receiving the appeal.
The written order of the Secretary shall be final and
is not subject to judicial review, except as provided in
paragraph (3). The materials submitted to the admin-
istrative law judge and the Secretary shall constitute
the administrative record for purposes of review by
the court.
(3) COURT APPEALS.—An order of the Secretary
affirming, in whole or in part, the issuance or re-
newal of a temporary denial order may, within 15
days after the order is issued, be appealed by a person
subject to the order to the United States Court of Ap-
peals for the District of Columbia Circuit, which shall
have jurisdiction of the appeal. The court may review
only those issues necessary to determine whether the
issuance of the temporary denial order was based on
reasonable cause to believe that the person subject to
the order was engaged in or was about to engage in
any act or practice which constitutes or would con-
stitute a violation of this title, or any regulation,
order, or license issued under this title, or if a crimi-
nal indictment has been returned against the person
subject to the order alleging a violation of this title
186
or any of the statutes listed in section 110(f). The
court shall vacate the Secretary’s order if the court
finds that the Secretary’s order is arbitrary, capri-
cious, an abuse of discretion, or otherwise not in ac-
cordance with law.
(e) APPEALS FROM LICENSING AND CLASSIFICATION
ACTIONS.—
(1) LICENSE DENIALS.—A determination of the
Secretary under section 109 to deny a license may be
appealed by the applicant to an administrative law
judge who shall have the authority to conduct proceed-
ings to determine only whether the item sought to be
exported is in fact on the control list. Such proceed-
ings shall be conducted within 90 days after the ap-
peal is filed. Any determination by an administrative
law judge under this subsection and all materials
filed before such judge in the proceedings shall be re-
viewed by the Secretary, who shall either affirm or
vacate the determination in a written decision within
30 days after receiving the determination.
(2) CLASSIFICATION DECISIONS.—(A) Within 30
days after the issuance of a classification decision
under section ƒ109(h)(1)≈ 109(i)(1), or within 30
days after the failure to issue such a classification de-
cision in response to a request for such a decision,
187
any United States person aggrieved by such decision
or failure may file an appeal thereof to an adminis-
trative law judge, but only on issues regarding such
classification decision including, but not limited to,
decisions of whether an item is covered by any gen-
eral or specific note. The administrative law judge
may not review determinations as to the reliability of
an end user or the nature of an end use or end user.
The administrative law judge shall, within 90 days
after such appeal is filed, issue his or her decision
and issue any order that is necessary or appropriate
to carry out such decision. Such order shall be bind-
ing upon the Secretary unless and until vacated or
modified under subparagraph (B). Such order may be
stayed by the administrative law judge or the Sec-
retary pending the filing and determination of an ap-
peal under subparagraph (B).
(B) Any United States person aggrieved by a de-
cision of the administrative law judge under subpara-
graph (A) may appeal such decision to the Secretary
within 45 days after receiving notification of such de-
cision. The Secretary shall, in a written order, affirm,
modify, or vacate the decision of the administrative
law judge within 30 days after such appeal is filed.
The authority of the Secretary under this paragraph
188
may not be delegated to an officer or employee of the
Bureau of Export Administration.
(3) PUBLICATION
AND
INDEXING
OF
DECI-
SIONS.—Subject to the limitations of section 114(g),
final decisions of administrative law judges and the
Secretary under this subsection shall be published in
the Federal Register within 15 days after they are
rendered. The Secretary shall index decisions on ap-
peals of license denials.
(4) CONDUCT OF PROCEEDINGS.—Except as pro-
vided in this subsection, proceedings under this sub-
section shall be conducted in accordance with sections
554 (notwithstanding subsection (a)(4) of such sec-
tion), 556, and 557 of title 5, United States Code.
(5) REGULATIONS.—The Secretary shall issue
such regulations as are necessary to carry out this
subsection.
(6) OTHER RIGHTS NOT AFFECTED.—The rights
granted by this subsection do not abridge any other
rights provided by law.
(7) EFFECTIVE DATE.—This subsection shall take
effect 120 days after the date of the enactment of this
Act. Regulations implementing this subsection shall be
promulgated no later than such effective date.
189
SEC. 113. ENFORCEMENT.
(a) GENERAL AUTHORITY AND DESIGNATION.—
(1) POLICY GUIDANCE ON ENFORCEMENT.—The
Secretary, in consultation with the Secretary of the
Treasury and the heads of other appropriate depart-
ments and agencies, shall be responsible for providing
policy guidance on the enforcement of this title.
(2) GENERAL AUTHORITIES.—(A) To the extent
necessary or appropriate to the enforcement of this
title or to the imposition of any penalty, forfeiture,
or liability arising under the Export Administration
Act of 1979, officers or employees of the Department
of Commerce designated by the Secretary and officers
and employees of the United States Customs Service
designated by the Commissioner may exercise the en-
forcement authorities described in paragraph (3).
(B) In carrying out the enforcement authorities
described in paragraph (3), the Commissioner of Cus-
toms, and employees of the United States Customs
Service designated by the Commissioner, may make
investigations within or outside the United States
and at those ports of entry or exit from the United
States where officers of the United States Customs
Service are authorized by law to carry out such en-
forcement responsibilities. Subject to paragraph (3),
the United States Customs Service is authorized, in
190
the enforcement of this title, to search, detain (after
search), and seize commodities or technology at those
ports of entry or exit from the United States where
officers of the Customs Service are authorized by law
to conduct such searches, detentions, and seizures, and
at those places outside the United States where the
Customs Service, pursuant to agreements or other ar-
rangements with other countries, is authorized to per-
form enforcement activities.
(C) In carrying out the enforcement authorities
described in paragraph (3), the Secretary, and officers
and employees of the Department of Commerce des-
ignated by the Secretary, may make investigations
within the United States, and shall conduct, outside
the United States, pre-license and post-shipment ver-
ifications of items licensed for export and investiga-
tions in the enforcement of section 108. The Secretary,
and officers and employees of the Department of Com-
merce designated by the Secretary, are authorized to
search, detain (after search), and seize items at those
places within the United States other than those ports
and borders specified in subparagraph (B). The
search, detention (after search), or seizure of items at
those ports and borders specified in subparagraph (B)
may be conducted by officers and employees of the De-
191
partment of Commerce only with the concurrence of
the Commissioner of Customs or a person designated
by the Commissioner.
(D) The Secretary and the Commissioner of Cus-
toms may enter into agreements and arrangements
for the enforcement of this title, including foreign in-
vestigations and information exchange.
(3) SPECIFIC AUTHORITIES.—(A) Any officer or
employee designated under paragraph (2) may do the
following in carrying out the enforcement authority
under this title:
(i) Make investigations of, obtain informa-
tion from, make inspection of any books, records,
or reports (including any writings required to be
kept by the Secretary), premises, or property of,
and take the sworn testimony of, any person.
(ii) Administer oaths or affirmations, and
by subpoena require any person to appear and
testify or to appear and produce books, records,
and other writings, or both. In the case of contu-
macy by, or refusal to obey a subpoena issued to,
any such person, a district court of the United
States, after notice to any such person and a
hearing, shall have jurisdiction to issue an order
requiring such person to appear and give testi-
192
mony or to appear and produce books, records,
and other writings, or both. Any failure to obey
such order of the court may be punished by such
court as a contempt thereof.
(B) Any officer or employee of the Office of Ex-
port Enforcement of the Department of Commerce
who is designated by the Secretary under paragraph
(2), and any officer or employee of the United States
Customs Service who is designated by the Commis-
sioner of Customs under paragraph (2), may do the
following in carrying out the enforcement authority
under this title:
(i) Execute any warrant or other process is-
sued by a court or officer of competent jurisdic-
tion with respect to the enforcement of this title.
(ii) Make arrests without warrant for any
violation of this title committed in his or her
presence or view, or if the officer or employee has
probable cause to believe that the person to be ar-
rested has committed, is committing, or is about
to commit such a violation.
(iii) Carry firearms.
(C) Any officer or employee of the United States
Customs Service designated by the Commissioner of
Customs under paragraph (2) may do the following
193
in carrying out the enforcement authority under this
title:
(i) Stop, search, and examine a vehicle, ves-
sel, aircraft, or person on which or whom the of-
ficer or employee has reasonable cause to suspect
there is any item that has been, is being, or is
about to be exported from or transited through
the United States in violation of this title.
(ii) Detain and search any package or con-
tainer in which the officer or employee has rea-
sonable cause to suspect there is any item that
has been, is being, or is about to be exported
from or transited through the United States in
violation of this title.
(D) Any officer or employee designated under
paragraph (2) may detain (after search under sub-
paragraph (C)) or seize any item, for purposes of se-
curing for trial or forfeiture to the United States, on
or about a vehicle, vessel, aircraft, or person described
in subparagraph (C)(i), or in a package or container
described in subparagraph (C)(ii), if the officer or
employee has probable cause to believe the item has
been, is being, or is about to be exported from or
transited through the United States in violation of
this title.
194
(4) OTHER AUTHORITIES NOT AFFECTED.—The
authorities conferred by this section are in addition
to any authorities conferred under other laws.
(b) FORFEITURE.—All commodities or tangible items
lawfully seized under subsection (a) by designated officers
or employees shall be subject to forfeiture to the United
States. Those provisions of law relating to—
(1) the seizure, summary and judicial forfeiture,
and condemnation of property for violations of the
customs laws,
(2) the disposition of such property or the pro-
ceeds from the sale thereof,
(3) the remission or mitigation of such forfeit-
ures, and
(4) the compromise of claims,
shall apply to seizures and forfeitures incurred, or alleged
to have been incurred, under the provisions of this sub-
section, insofar as applicable and not inconsistent with this
title; except that such duties as are imposed upon the cus-
toms officer or any other person with respect to the seizure
and forfeiture of property under the customs laws may be
performed with respect to seizures and forfeitures of prop-
erty under this subsection by the Secretary or such officers
and employees of the Department of Commerce as may be
authorized or designated for that purpose by the Secretary,
195
or, upon the request of the Secretary, by any other agency
that has authority to manage and dispose of seized prop-
erty.
(c) REFERRAL OF CASES.—All cases involving viola-
tions of this title shall be referred to the Secretary for pur-
poses of determining civil penalties and administrative
sanctions under section 110(c), or to the Attorney General
for criminal action in accordance with this title.
(d) UNDERCOVER INVESTIGATION OPERATIONS.—
(1) USE OF FUNDS.—With respect to any under-
cover investigative operation conducted by the Office
of Export Enforcement of the Department of Com-
merce (hereafter in this subsection referred to as
‘‘OEE’’) necessary for the detection and prosecution of
violations of this title—
(A) funds made available for export enforce-
ment under this title may be used to purchase
property, buildings, and other facilities, and to
lease space within the United States, without re-
gard to sections 1341 and 3324 of title 31, Unit-
ed States Code, the third undesignated para-
graph under the heading of ‘‘MISCELLANEOUS’’ of
the Act of March 3, 1877, (40 U.S.C. 34), sec-
tions 3732(a) and 3741 of the Revised Statutes
of the United States (41 U.S.C. 11(a) and 22),
196
and subsections (a) and (c) of section 304, and
section 305 of the Federal Property and Admin-
istrative Services Act of 1949 (41 U.S.C. 254(a)
and (c) and 255),
(B) funds made available for export enforce-
ment under this title may be used to establish or
to acquire proprietary corporations or business
entities as part of an undercover operation, and
to operate such corporations or business entities
on a commercial basis, without regard to section
9102 of title 31, United States Code,
(C) funds made available for export enforce-
ment under this title and the proceeds from un-
dercover operations may be deposited in banks or
other financial institutions without regard to the
provisions of section 648 of title 18, United
States Code, and section 3302 of title 31, United
States Code, and
(D) the proceeds from undercover operations
may be used to offset necessary and reasonable
expenses incurred in such operations without re-
gard to the provisions of section 3302 of title 31,
United States Code,
if the Director of OEE (or an officer or employee des-
ignated by the Director) certifies, in writing, that the
197
action authorized by subparagraph (A), (B), (C), or
(D) for which the funds would be used is necessary for
the conduct of the undercover operation.
(2) DISPOSITION OF BUSINESS ENTITIES.—If a
corporation or business entity established or acquired
as part of an undercover operation with a net value
of more than $50,000 is to be liquidated, sold, or oth-
erwise disposed of, the Director of OEE shall report
the circumstances to the Secretary and the Comptrol-
ler General, as much in advance of such disposition
as the Director of OEE or his or her designee deter-
mines is practicable. The proceeds of the liquidation,
sale, or other disposition, after obligations incurred
by the corporation or business enterprise are met,
shall be deposited in the Treasury of the United
States as miscellaneous receipts.
(3) DEPOSIT OF PROCEEDS.—As soon as the pro-
ceeds from an OEE undercover investigative oper-
ation with respect to which an action is authorized
and carried out under this subsection are no longer
necessary for the conduct of such operation, such pro-
ceeds or the balance of such proceeds remaining at the
time shall be deposited into the Treasury of the Unit-
ed States as miscellaneous receipts.
198
(4) AUDIT AND REPORT.—(A) The Director of
OEE shall conduct a detailed financial audit of each
OEE undercover investigative operation which is
closed and shall submit the results of the audit in
writing to the Secretary. Not later than 180 days
after an undercover operation is closed, the Secretary
shall submit to the Congress a report on the results
of the audit.
(B) The Secretary shall submit annually to the
Congress a report, which may be included in the an-
nual report under section 115, specifying the follow-
ing information:
(i) The number of undercover investigative
operations pending as of the end of the period for
which such report is submitted.
(ii) The number of undercover investigative
operations commenced in the 1-year period pre-
ceding the period for which such report is sub-
mitted.
(iii) The number of undercover investigative
operations closed in the 1-year period preceding
the period for which such report is submitted
and, with respect to each such closed undercover
operation, the results obtained and any civil
claims made with respect thereto.
199
(5) DEFINITIONS.—For purposes of paragraph
(4)—
(A) the term ‘‘closed’’, with respect to an
undercover investigative operation, refers to the
earliest point in time at which all criminal pro-
ceedings (other than appeals) pursuant to the in-
vestigative operation are concluded, or covert ac-
tivities pursuant to such operation are con-
cluded, whichever occurs later;
(B) the terms ‘‘undercover investigative op-
eration’’ and ‘‘undercover operation’’ mean any
undercover investigative operation conducted by
OEE—
(i) in which the gross receipts (exclud-
ing interest earned) exceed $25,000, or ex-
penditures (other than expenditures for sal-
aries of employees) exceed $75,000, and
(ii) which is exempt from section 3302
or 9102 of title 31, United States Code,
except that clauses (i) and (ii) shall not apply
with respect to the report to the Congress re-
quired by subparagraph (B) of paragraph (4);
and
200
(C) the term ‘‘employees’’ means employees,
as defined in section 2105 of title 5, United
States Code, of the Department of Commerce.
(e) REFERENCE TO ENFORCEMENT.—For purposes of
this section, a reference to the enforcement of this title or
to a violation of this title includes a reference to the enforce-
ment or a violation of any regulation, license, or order is-
sued under this title.
SEC. 114. EXPORT CONTROL AUTHORITIES AND PROCE-
DURES.
(a) POLICY GUIDANCE.—
(1) IN GENERAL.—As directed by the President,
annual policy guidance shall be issued to provide de-
tailed implementing guidance to export licensing offi-
cials in all appropriate departments and agencies.
(2) ELEMENTS OF ANNUAL POLICY REVIEW.—In
order to develop such annual policy guidance, export
controls and other regulations to implement this title
shall be reviewed annually. This annual policy review
shall include an evaluation of the benefits and costs
of the imposition, extension, or removal of controls
under this title. This review shall include—
(A) an assessment by the Secretary of the
economic consequences of the imposition, exten-
sion, or removal of controls during the preceding
201
12 months, including the impact on United
States exports or jobs;
(B) an assessment by the Secretary of State
of the objectives of the controls in effect during
the preceding 12 months, and the extent to which
the controls have served those objectives; and
(C) an assessment by the Secretary of De-
fense of the impact that the imposition, exten-
sion, or removal of controls during the preceding
12 months has had on United States national se-
curity.
(b) EXPORT CONTROL AUTHORITY AND FUNCTIONS.—
(1) IN GENERAL.—Unless otherwise reserved to
the President or a department or agency outside the
Department of Commerce, all power, authority, and
discretion conferred by this title shall be exercised by
the Secretary.
(2) DELEGATION OF FUNCTIONS OF THE SEC-
RETARY.—The Secretary may delegate any function
under this title to the Under Secretary of Commerce
for Export Administration appointed under sub-
section (d) or to any other officer of the Department
of Commerce.
(c) EXPORT CONTROL POLICY COMMITTEE.—
202
(1) ESTABLISHMENT.—There is established an
Export Control Policy Committee (hereafter in this
subsection referred to as the ‘‘Committee’’).
(2) FUNCTIONS.—The Committee shall—
(A) provide policy guidance and advice to
the President on export control issues under this
title;
(B) review policy recommendations pro-
posed by the Secretary and other members of the
Committee; and
(C) receive policy recommendations from
other agencies and resolve any policy disputes
among departments and agencies under this
title.
(3) MEMBERSHIP.—The Committee shall be com-
prised of—
(A) the Secretary;
(B) the Secretary of Defense;
(C) the Secretary of Energy;
(D) the Secretary of State;
(E) the National Security Adviser;
(F) the National Economic Adviser;
(G) the Secretary of the Treasury;
(H) the United States Trade Representative;
and
203
(I) the Director of the Arms Control and
Disarmament Agency.
(4) CHAIR.—The Committee shall be jointly
chaired by the National Economic Adviser and the
National Security Adviser.
(5) DELEGATION; OTHER REPRESENTATIVES.—A
member of the Committee under paragraph (3) may
designate the deputy head of his or her department or
agency to serve in his or her absence as a member of
the Committee, but this authority may not be dele-
gated to any other individual. The Chairs may also
invite the temporary participation in the Committee’s
meetings of representatives from other offices and
agencies as appropriate to the issues under consider-
ation.
(6) MEETINGS.—The Secretary or either Chair of
the Committee may call a meeting of the Committee.
Meetings shall not be subject to section 552b of title
5, United States Code.
(d) UNDER SECRETARY OF COMMERCE; ASSISTANT
SECRETARIES.—
(1) APPOINTMENT.—The President shall appoint,
by and with the advice and consent of the Senate, an
Under Secretary of Commerce for Export Administra-
tion who shall carry out all functions of the Secretary
204
under this title and other provisions of law relating
to national security, as the Secretary may delegate.
The President shall appoint, by and with the advice
and consent of the Senate, two Assistant Secretaries
of Commerce to assist the Under Secretary in carry-
ing out such functions.
(2) TRANSITION PROVISIONS.—Those individuals
serving in the positions of Under Secretary of Com-
merce for Export Administration and Assistant Sec-
retaries of Commerce under section 15(a) of the Ex-
port Administration Act of 1979, on the day before
the date of the enactment of this Act, shall be deemed
to have been appointed under paragraph (1) as of
such date of enactment.
(e) ISSUANCE OF REGULATIONS.—The President and
the Secretary may issue such regulations as are necessary
to carry out this title. Any such regulations the purpose
of which is to carry out section 105 or 106 may be issued
only after the regulations are submitted for review to such
departments or agencies as the President considers appro-
priate, and to any appropriate export advisory committee
appointed under section 104(f). The preceding sentence does
not require the concurrence or approval of any official, de-
partment, or agency to which such regulations are submit-
ted.
205
(f) AMENDMENTS TO REGULATIONS.—If the Secretary
proposes to amend regulations issued under this title, the
Secretary shall report to the Committee on Banking, Hous-
ing, and Urban Affairs of the Senate and the Committee
on Foreign Affairs of the House of Representatives on the
intent and rationale of such amendments. Such report shall
evaluate the cost and burden to the United States exporters
of the proposed amendments in relation to any enhance-
ment of licensing objectives. The Secretary shall consult
with the appropriate export advisory committees appointed
under section 104(f) in formulating or amending regula-
tions issued under this title.
(g) CONFIDENTIALITY OF INFORMATION.—
(1) EXEMPTIONS FROM DISCLOSURE.—
(A) Except as otherwise provided by the
third sentence of section 108(b)(2), information
obtained under the Export Administration Act of
1979 and its predecessor statutes on or before
June 30, 1980, which is deemed confidential, in-
cluding Shipper’s Export Declarations, or with
reference to which a request for confidential
treatment is made by the person furnishing such
information, shall be exempt from disclosure
under section 552 of title 5, United States Code,
and such information shall not be published or
206
disclosed unless the Secretary determines that the
withholding thereof is contrary to the national
interest.
(B) Except as otherwise provided by the
third sentence of section 108(b)(2), information
obtained under this title or under the Export Ad-
ministration Act of 1979 after June 30, 1980,
may be withheld from disclosure only to the ex-
tent permitted by statute, except that informa-
tion submitted, obtained, or considered in con-
nection with an application for an export license
or other export authorization under the Export
Administration Act of 1979 or this title, includ-
ing the export license or other export authoriza-
tion itself, classification requests described in sec-
tion 109(h)(1), information obtained during the
course of a foreign availability assessment, infor-
mation or evidence obtained in the course of any
investigation, and information obtained or fur-
nished under this title in connection with inter-
national agreements, treaties, or obligations shall
be withheld from public disclosure unless the re-
lease of such information is determined by the
Secretary to be in the national interest.
(2) INFORMATION TO CONGRESS AND GAO.—
207
(A) IN
GENERAL.—Nothing in this title
shall be construed as authorizing the withholding
of information from the Congress or from the
General Accounting Office.
(B) AVAILABILITY TO THE CONGRESS.—
(i) IN GENERAL.—All information ob-
tained at any time under this title or pre-
vious Acts regarding the control of exports,
including any report or license application
required under this title, shall be made
available to any committee or subcommittee
of Congress of appropriate jurisdiction upon
the request of the chairman or ranking mi-
nority member of such committee or sub-
committee.
(ii) PROHIBITION
ON
FURTHER
DIS-
CLOSURE.—No committee, subcommittee, or
Member of Congress shall disclose any infor-
mation obtained under this title or previous
Acts regarding the control of exports which
is submitted on a confidential basis to the
Congress under clause (i) unless the full
committee to which the information is made
available determines that the withholding of
208
the information is contrary to the national
interest.
(C) AVAILABILITY TO THE GAO.—
(i) 
IN
GENERAL.—Notwithstanding
paragraph (1), information referred to in
subparagraph (B) shall, consistent with the
protection 
of 
intelligence, 
counterintel-
ligence, and law enforcement sources, meth-
ods, and activities, as determined by the
agency that originally obtained the infor-
mation, and consistent with the provisions
of section 716 of title 31, United States
Code, be made available only by the agency,
upon request, to the Comptroller General of
the United States or to any officer or em-
ployee of the General Accounting Office au-
thorized by the Comptroller General to have
access to such information.
(ii) PROHIBITION
ON
FURTHER
DIS-
CLOSURES.—No officer or employee of the
General Accounting Office shall disclose, ex-
cept to the Congress in accordance with this
paragraph, any such information which is
submitted on a confidential basis and from
which any individual can be identified.
209
(3) INFORMATION EXCHANGE.—Notwithstanding
paragraph (1), the Secretary and the Commissioner of
Customs shall exchange licensing and enforcement in-
formation with each other which is necessary to facili-
tate enforcement efforts and effective license decisions.
(4) PENALTIES FOR DISCLOSURE OF CONFIDEN-
TIAL INFORMATION.—Any officer or employee of the
United States, or any department or agency thereof,
who publishes, divulges, discloses, or makes known in
any manner or to any extent not authorized by law
any information that—
(A) he or she obtains in the course of his or
her employment or official duties or by reason of
any examination or investigation made by, or
report or record made to or filed with, such de-
partment or agency, or officer or employee there-
of, and
(B) is exempt from disclosure under this
subsection,
shall be fined not more than $10,000, or imprisoned
not more than one year, or both, shall be removed
from office or employment, and shall be subject to a
civil penalty of not more than $1,000 imposed by the
Secretary under section 110(c).
210
(h) AUTHORITY
FOR SEMINAR
AND PUBLICATIONS
FUND.—The Secretary is authorized to cooperate with pub-
lic agencies, other governments, international organiza-
tions, private individuals, private associations, and other
groups in connection with seminars, publications, and re-
lated activities to carry out export activities, including edu-
cating the public or government officials on the application
of this title and the regulations issued under this title. The
Secretary is further authorized to accept contributions of
funds, property, or services in connection with such activi-
ties to recover the cost of such programs and activities. Con-
tributions may include payments for materials or services
provided as part of such activities. The contributions col-
lected may be retained for use in covering the costs of such
activities, and for providing information to the public with
respect to this title and other export control programs of
the United States and other governments.
(i) SUPPORT OF OTHER COUNTRIES’ EXPORT CON-
TROL PROGRAM.—The Secretary is authorized to provide
training to officials of other countries on the principles and
procedures for the implementation of effective export con-
trols and shall participate in any such training provided
by other departments and agencies of the United States.
(j) 
INCORPORATED
COMMODITIES
AND
TECH-
NOLOGY.—
211
(1) 
COMMODITIES
CONTAINING
CONTROLLED
PARTS AND COMPONENTS.—Export licenses may not
be required under this title or any other provision of
law for a commodity solely because the commodity
contains parts or components on which export con-
trols are in effect under this title if such parts or
components—
(A) are essential to the functioning of the
commodity;
(B) are customarily included in sales of the
commodity in countries other than controlled
countries; and
(C) comprise 25 percent or less of the total
value of the commodity,
unless the commodity itself, if exported, would by vir-
tue of the functional characteristics of the commodity
as a whole meet the requirements of subparagraph (A)
or (B) of section 105(a)(1).
(2) REEXPORTS OF FOREIGN-MADE ITEMS INCOR-
PORATING U.S. ITEMS.—
(A) COMMODITIES.—(i) Subject to clause
(ii), no authority or permission may be required
under section 105 or 106 to reexport a commod-
ity that is produced in a country other than the
United States and incorporates commodities that
212
are subject to the jurisdiction of the United
States, if the value of the controlled United
States content of the commodity produced in
such other country is 25 percent or less of the
total value of the commodity.
(ii) No authority or permission may be re-
quired under section 106 to reexport to a terror-
ist country, or to a country against which an
embargo described in section 106(f)(1) is in ef-
fect, a commodity that is produced in a country
other than the United States and incorporates
commodities that are subject to the jurisdiction
of the United States, if the value of the controlled
United States content of the commodity produced
in such other country is 10 percent or less of the
total value of the commodity.
(iii) For purposes of clause (ii), a ‘‘terrorist
country’’ is a country with respect to which a
determination is in effect that was made under
section 106(i)(1)(A) of this Act, or section
6(j)(1)(A) of the Export Administration Act of
1979, that the government of such country has
repeatedly provided support for acts of inter-
national terrorism.
213
(B) TECHNOLOGY.—(i) No authority or per-
mission may be required under section 105 to re-
export technology that is produced in a country
other than the United States and is commingled
with or drawn from technology that is produced
in the United States, if the value of the con-
trolled United States content of the technology
produced in such other country is 25 percent or
less of the total value of the technology.
(ii) No authority or permission may be re-
quired under section 106 to reexport technology
that is produced in a country other than the
United States and is commingled with or drawn
from technology that is produced in the United
States, if the value of the controlled United
States content of the technology produced in such
other country is 10 percent or less of the total
value of the technology.
(C) CONTROLLED CONTENT.—For purposes
of this paragraph, the ‘‘controlled United States
content’’ of a commodity or technology means
those commodities or technology that—
(i) are subject to the jurisdiction of the
United States;
214
(ii) are incorporated into the commod-
ity or technology; and
(iii) would, at the time of the reexport,
require a validated license under section
105 or 106 if exported from the United
States to a country to which the commodity
or technology is to be reexported.
(D) TREATMENT
OF
CERTAIN
TECHNICAL
DATA.—For purposes of this subsection, tech-
nology and source code used to design or produce
commodities or software produced in a country
other than the United States are not incor-
porated into such commodities or software.
(k) EXCEPTIONS FOR MEDICAL AND HUMANITARIAN
PURPOSES.—This title does not authorize controls on—
(1) medicine or medical supplies; or
(2) donations of items that are intended to meet
basic human needs, including food, educational mate-
rials, seeds, hand tools, water resources equipment,
clothing and shelter materials, and basic household
supplies.
(l) SANCTITY
OF EXISTING CONTRACTS
AND LI-
CENSES.—
(1) IN GENERAL.—The President may not pro-
hibit the export of items under section 105 or 106—
215
(A) in performance of a contract, agree-
ment, or other contractual commitment entered
into before the effective date of any export con-
trols imposed on such items by this title, or the
date on which the President reports to the Con-
gress the President’s intention to impose controls
on the export of such items, whichever date oc-
curs first, or
(B) under a validated license or other au-
thorization issued under this title before the effec-
tive date of any export controls imposed on such
items by this title, or the date on which the
President reports to the Congress the President’s
intention to impose controls on the export of such
items, whichever date occurs first.
(2) EXCEPTION.—The prohibition in paragraph
(1) shall not apply if the President determines and
certifies to the Congress that—
(A) a breach of the peace poses a serious
and direct threat to the strategic interest of the
United States;
(B) the prohibition of exports under each
such contract, agreement, commitment, license,
or authorization will be directly instrumental in
216
remedying the situation posing the direct threat;
and
(C) the export controls will continue only so
long as the direct threat persists.
The authority of the President to make determina-
tions under this paragraph may not be delegated.
(m) PUBLICATION OF ACTIONS.—
(1) DECISIONS
AND
ACTIONS
OF
THE
SEC-
RETARY.—
(A) IN GENERAL.—The Secretary shall pub-
lish in the Federal Register, to the greatest extent
practicable, actions, procedures, and decisions of
the Secretary under this title, taking into ac-
count restrictions on disclosure of classified or
confidential information. The following deter-
minations of the Secretary shall in every case be
published in the Federal Register, unless a pri-
vate party requested the determination and asked
that it not be published:
(i) Classification of a commodity or
technology on the control index.
(ii) Calculation of a commonly-used
control index parameter for a commodity or
technology, including all officially accepted
217
composite theoretical performance calcula-
tions for computers and microprocessors.
(B) NOTICE OF REVISIONS.—Whenever the
Secretary makes any revision in the control
index with respect to any commodity or tech-
nology, or with respect to any country or des-
tination affected by controls imposed under sec-
tion 105 or section 106, the Secretary shall pub-
lish in the Federal Register a notice of such revi-
sion and shall specify in such notice under which
authority the revision is being made.
(2) EXPORT CONTROL REGIME ACTIONS.—
(A) IN GENERAL.—Not more than 90 days
after the date of the enactment of this Act, the
Secretary shall publish in the Federal Register
the full text of the lists of controlled items of all
export control regimes and all notes and under-
standings of the regimes concerning such lists.
The Secretary shall update the publication under
the preceding sentence at least once in each 1-
year period occurring after the original publica-
tion under this subparagraph.
(B) CONTENTS.—The Secretary shall pub-
lish in the Federal Register—
218
(i) the full text of any agreements af-
fecting the lists of controlled items of all ex-
port control regimes, together with all notes,
understandings, and other aspects of such
agreements and all revisions to such texts;
(ii) subject to the limitations set forth
in subsection (g), decisions on requests for
exceptions permitted by such export control
regimes for particular exports;
(iii) other actions and decisions of such
export control regimes, to the maximum ex-
tent possible; and
(iv) unreliable end users with respect
to items on which export controls are im-
posed under this title, and persons to whom
sanctions have been applied, or whose ex-
port privileges have been denied, under this
title.
(C) TIMING.—Such publication shall be
made not more than 30 days after the agree-
ments are reached, the decisions are made, the
actions are taken, or the information becomes
available, as the case may be.
(D) EXCEPTION.—The publication of a par-
ticular matter need not be made under this
219
paragraph to the extent that the Secretary sub-
mits a written finding to the Congress that to
publish that matter would be contrary to na-
tional or international security, would abridge
the confidentiality of the decision-making proc-
esses of an export control regime, or would other-
wise be inconsistent with the obligations of the
United States to an export control regime.
(n) NOTIFICATION OF THE PUBLIC; CONSULTATION
WITH INDUSTRY; RECORDKEEPING.—
(1) NOTIFICATION
OF
THE
PUBLIC.—The Sec-
retary shall keep the public fully apprised of changes
in export control policy and procedures instituted
under this title with a view to encouraging trade.
(2) CONSULTATION WITH INDUSTRY.—The Sec-
retary shall meet regularly with export advisory com-
mittees appointed under section 104(f) in order to ob-
tain their views on United States export control pol-
icy and the foreign availability of commodities and
technology.
(o) DELEGATION TO COCOM.—The Secretary, or an
officer or employee of the Department of Commerce des-
ignated by the Secretary, shall be a member of the perma-
nent United States delegation to COCOM or its successor
export control regime.
220
(p) EXPORT CONTROL ATTACHES.—The Secretary
shall assign a full-time export control attache to each of
those countries that—
(1) pose the greatest threat to the United States
and its allies with respect to the proliferation of
weapons of mass destruction and missiles; and
(2) received exports pursuant to the largest num-
ber of licenses issued under sections 105 and 106, dur-
ing the preceding 2 calendar years, as compared to li-
censes issued under such sections for exports to all
countries.
Each such attache shall give priority to conducting post-
shipment verifications, prelicense checks, and other mon-
itoring of end uses in the country to which the attache is
assigned.
(q) AUTHORIZATION FOR TECHNICAL DATA.—A vali-
dated license authorizing the export of any commodities or
technology under this title shall also authorize the export
of operation technical data related to such commodities or
technology, whether or not such data is specifically ref-
erenced in the license or license application, if the technical
level of the data does not exceed the level reasonably nec-
essary to install, repair, maintain, inspect, operate, or use
the commodities or technology.
221
(r) LICENSES FOR SPARE PARTS NOT REQUIRED.—
An individual validated license shall not be required under
this title for replacement parts which are exported to re-
place on a one-for-one basis parts that were in a commodity
that was lawfully exported from the United States, unless
the President determines that such a license should be re-
quired for such parts.
SEC. 115. ANNUAL REPORT.
(a) CONTENTS.—Not later than March 1 of each year,
the Secretary shall submit to the Congress a report on the
administration of this title during the preceding calendar
year. All agencies shall cooperate fully with the Secretary
in providing information for such report. Such report shall
include detailed information on the following:
(1) The implementation of the policies set forth
in section 103, including delegations of authority by
the President under section 104(d), consultations with
the export advisory committees established under sec-
tion 104(f), and any changes in the exercise of the au-
thorities contained in sections 105(a), 106(a), 107(a),
and 108(a).
(2) With respect to multilateral export controls
imposed or maintained under section 105, the follow-
ing:
222
(A) The effectiveness of each export control
regime, as required by section 105(h), including
all information required by section 105(h)(2).
(B) Adjustments to multilateral export con-
trols.
(C) The implementation of the export licens-
ing treatment authorized by section 105(e).
(D) Determinations of foreign availability
made under section 105(i), the criteria used to
make such determinations, the removal of any
export controls under such subsection, and any
evidence demonstrating a need to maintain ex-
port controls notwithstanding foreign availabil-
ity.
(E) The operation of the indexing system
under section 105(k).
(3) With respect to unilateral export controls im-
posed under section 106, the following:
(A) The effectiveness of such controls.
(B) Adjustments to such controls pursuant
to negotiations under subsections (a)(5) and (c)
of section 106.
(C) Embargoes imposed, maintained, or re-
moved in accordance with section 106, including
descriptions of each embargo and the rationale
223
for imposing, maintaining, or removing such
embargo.
(4) Short supply controls and monitoring under
section 107.
(5) Organizational and procedural changes un-
dertaken in furtherance of the policies set forth in this
title, including changes to increase the efficiency of
the export licensing process and to fulfill the require-
ments of section 109, including an accounting of ap-
peals received, and actions taken pursuant thereto,
under section ƒ109(g)≈ 109(h).
(6) Violations under section 110 and enforcement
activities under section 113.
(7) The issuance of regulations under this title.
(8) The results, in as much detail as may be in-
cluded consistent with the strategic and political in-
terests of the United States and the need to maintain
the confidentiality of proprietary information, of the
reviews of the security control list, and any revisions
to the list resulting from such reviews, required by
section 105.
(9) Each of the assessments described in section
114(a)(2).
(b) INFORMATION ON SECTION 111.—
224
(1) INFORMATION TO BE INCLUDED.—The Presi-
dent shall include in each annual report under sub-
section (a)—
(A) a description of the actions taken to
carry out section 111, including the imposition
and removal of sanctions under such section;
(B) a description of the current efforts of
foreign countries and subnational groups to ac-
quire equipment, materials, or technology to de-
velop, produce, or use chemical or biological
weapons, together with an assessment of the cur-
rent and likely future capabilities of such coun-
tries and groups to develop, produce, stockpile,
deliver, transfer, or use such weapons;
(C) a description of—
(i) the use of chemical or biological
weapons by foreign countries in violation of
international law,
(ii) the use of chemical or biological
weapons by subnational groups,
(iii) substantial preparations by for-
eign countries and subnational groups to do
so, and
(iv) the development, production, stock-
piling, or use of chemical or biological
225
weapons 
by 
foreign 
countries 
and
subnational groups; and
(D) a description of the extent to which for-
eign persons or governments have knowingly and
materially 
assisted 
third 
countries 
or
subnational groups to acquire equipment, mate-
rial, or technology intended to develop, produce,
or use chemical or biological weapons.
(2) INFORMATION SHOULD BE UNCLASSIFIED.—
To the extent practicable, information submitted
under paragraph (1) should be based on unclassified
information.
SEC. 116. DEFINITIONS.
As used in this title:
(1) AUSTRALIA
GROUP.—The term ‘‘Australia
Group’’ means the multilateral arrangement in which
the United States participates that seeks to prevent
the proliferation of chemical and biological weapons.
(2) COCOM.—The term ‘‘COCOM’’ means the
Coordinating Committee for Multilateral Export Con-
trols, and any successor entity.
(3) COMMODITY.—The term ‘‘commodity’’ means
any article, natural or manmade substance, material,
supply, or manufactured product, including inspec-
226
tion and test equipment, and excluding technical
data.
(4) CONTROL OR CONTROLLED.—The terms ‘‘con-
trol’’ and ‘‘controlled’’ refer to a requirement that an
export have a validated license or written reexport
authorization.
(5) CONTROL INDEX.—The term ‘‘control index’’
means the United States Commodity Control Index
established under section 104(c)(1).
(6) CONTROLLABLE.—The term ‘‘controllable’’
means capable of being made subject to an effective
prohibition or significant restriction on exports. A
commodity or technology shall not be considered to be
controllable unless it is—
(A) manufactured or sold by only a limited
number of suppliers who can be positively identi-
fied;
(B) consumed or used by only a limited
number of end users who can be positively iden-
tified and whose export activities can be con-
trolled; and
(C) individually traceable or not easily con-
cealed or disguised.
(7) CONTROLLED
COUNTRY, CONTROLLED
END
USE, AND CONTROLLED END USER.—(A) The term
227
‘‘controlled country’’ means a country identified
under section 105(b)(3), and a country on which con-
trols are imposed under section 106.
(B) The term ‘‘controlled end use’’ means an end
use identified under section 105(b)(3) and an end use
for which exports are controlled under section 106.
(C) The term ‘‘controlled end user’’ means an
end user identified under section 105(b)(3) and an
end user to which exports are controlled under section
106.
(8) COOPERATING COUNTRY.—The term ‘‘cooper-
ating country’’ means a country that, pursuant to an
agreement or other arrangement with the United
States or an export control regime, controls exports of
items that are consistent with the criteria and stand-
ards of that export control regime.
(9) END USE AND END USER.—(A) The term
‘‘end use’’ means the intended application or use of
an item as represented by an export license applicant.
(B) The term ‘‘end user’’ means the person lo-
cated abroad who is the true party in interest in ac-
tually receiving an export for the end use designated
for the export.
(10) EXPORT.—The term ‘‘export’’—
(A) means—
228
(i) an actual shipment, transfer, or
transmission of items out of the United
States; and
(ii) a transfer to any person of items
either within the United States or outside of
the United States with the knowledge or in-
tent that the items will be shipped outside
the United States, transferred, or transmit-
ted to an unauthorized end user, end use, or
destination;
(B) includes the transfer of the registration
of a satellite or operational control of a satellite
from a party resident in the United States to a
party resident in another country; and
(C) includes the term ‘‘reexport’’.
(11) EXPORT CONTROL REGIME, MULTILATERAL
EXPORT CONTROL REGIME, MULTILATERAL REGIME,
AND
REGIME.—The terms ‘‘export control regime’’,
‘‘multilateral export control regime’’, ‘‘multilateral re-
gime’’, and ‘‘regime’’ each mean a group of two or
more countries which includes the United States and
the purpose of which is to curtail, by means of cooper-
ative export controls, access to certain items by cer-
tain countries, by certain end users, or for certain
end uses.
229
(12) FOREIGN AVAILABILITY, AVAILABLE IN FACT
TO
CONTROLLED
COUNTRIES.—The terms ‘‘foreign
availability’’ and ‘‘available in fact to controlled
countries’’ each include production or availability of
any item from any country—
(A) in which the item is not restricted for
export to any controlled country; or
(B) in which such export restrictions are
determined by the Secretary to be ineffective.
For purposes of subparagraph (B), the mere inclusion
of items on a list of items subject to export controls
imposed pursuant to a multilateral export control re-
gime shall not alone constitute credible evidence that
the government of a country provides an effective
means of controlling the export of such items to con-
trolled countries.
(13) FOREIGN PERSON.—The term ‘‘foreign per-
son’’ means—
(A) an individual who is not a United
States citizen or an alien admitted for perma-
nent residence to the United States;
(B) any corporation, partnership, business
association, society, trust, organization, or other
nongovernmental entity created or organized
under the laws of a foreign country or that has
230
its principal place of business outside the United
States; and
(C) any governmental entity of a foreign
country that is operating as a business enter-
prise.
(14) ITEM.—The term ‘‘item’’ means any com-
modity or technology.
(15) LICENSE.—The term ‘‘license’’ includes both
validated licenses and written reexport authoriza-
tions.
(16) MEMBER
OF
AN
EXPORT
CONTROL
RE-
GIME.—A ‘‘member’’ of an export control regime is a
country that participates in that regime.
(17) MISSILE.—The term ‘‘missile’’ means any
missile system or component listed in category I of
the MTCR Annex, and any other unmanned delivery
system or component of similar capability, as well as
the specially designed production facilities for these
systems.
(18) MISSILE
TECHNOLOGY
CONTROL
REGIME;
MTCR.—The term ‘‘Missile Technology Control Re-
gime’’ or ‘‘MTCR’’ means the policy statement and
guidelines between the United States, the United
Kingdom, the Federal Republic of Germany, France,
Italy, Canada, and Japan, announced on April 16,
231
1987, to restrict sensitive missile-related transfers
based on the MTCR Annex, and any amendments
thereto.
(19) MTCR ANNEX.—The term ‘‘MTCR Annex’’
means the Equipment and Technology Annex of the
MTCR, and any amendments thereto.
(20) NUCLEAR
EXPLOSIVE
DEVICE.—The term
‘‘nuclear explosive device’’ means any device, whether
assembled or disassembled, that is designed to produce
an instantaneous release of an amount of nuclear en-
ergy from special nuclear material that is greater
than the amount of energy that would be released
from the detonation of one pound of trinitrotoluene
(TNT).
(21) NUCLEAR
SUPPLIERS’ GROUP.—The term
‘‘Nuclear Suppliers’ Group’’ means the multilateral
arrangement in which the United States participates
whose purpose is to restrict the transfers of items with
relevance to the nuclear fuel cycle or nuclear explosive
applications.
(22) PERSON.—The term ‘‘person’’ includes the
singular and the plural and any individual, partner-
ship, corporation, or other form of association, includ-
ing (except when used in the term ‘‘foreign person’’
232
or ‘‘United States person’’) any government or agency
thereof.
(23) REEXPORT.—The term ‘‘reexport’’ means
the shipment, transfer, transshipment, or diversion of
items from one foreign country to another.
(24) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Commerce.
(25) SOFTWARE.—The term ‘‘software’’ means
one or more computer programs or microprograms
fixed in any tangible medium of expression.
(26) 
TECHNOLOGY.—The 
term 
‘‘technology’’
means specific information necessary for the develop-
ment, production, or use of a commodity, and in-
cludes software.
(27) UNILATERAL AND UNILATERALLY.—(A) The
terms ‘‘unilateral’’ and ‘‘unilaterally’’, with respect to
an export control or license treatment, refer to a li-
cense requirement or license treatment that is not
agreed to by a multilateral regime for any or all of
the following elements: the purpose of the license re-
quirement or treatment, the items subject to the li-
cense requirement or treatment, the standard of re-
view for applications for such license, the domestic
and international procedures for review of such li-
cense applications, and the controlled countries, and
233
end uses or end users, to which the review policy ap-
plies.
(B) An export control or license treatment shall
be considered to be unilateral or unilaterally main-
tained by the United States if it is a restriction, con-
dition, or interpretation imposed by the Secretary
upon commodities or technology, or upon a license
application for the export of commodities or tech-
nology, that is not imposed or implemented in simi-
lar circumstances by other members of an export con-
trol regime, or that is not otherwise specifically per-
mitted by this title.
(28) 
UNITED
STATES.—The 
term 
‘‘United
States’’ means the States of the United States, the
District of Columbia, and any commonwealth, terri-
tory, dependency, or possession of the United States,
and includes the Outer Continental Shelf, as defined
in section 2(a) of the Outer Continental Shelf Lands
Act (43 U.S.C. 1331(a)).
(29) UNITED STATES PERSON.—The term ‘‘Unit-
ed States person’’ means any United States resident
or national (other than an individual resident outside
the United States and employed by other than a
United States person), any domestic concern (includ-
ing any permanent domestic establishment of any for-
234
eign concern) and any foreign subsidiary or affiliate
(including any permanent foreign establishment) of
any domestic concern which is controlled in fact by
such domestic concern, as determined under regula-
tions of the President.
(30) WEAPONS
OF
MASS
DESTRUCTION.—The
term ‘‘weapons of mass destruction’’ means any chem-
ical, biological, or nuclear weapon, including a nu-
clear explosive device.
SEC. 117. EFFECTS ON OTHER ACTS.
ƒ(a) COMMODITY JURISDICTION.—
ƒ(1) IN GENERAL.—Notwithstanding any other
provision of law—
ƒ(A) an item agreed for control on the
International Munitions List of COCOM shall be
subject to control under the Arms Export Control
Act and not under this title;
ƒ(B) except as provided in paragraphs (2),
(3), and (5), an item which is on the Inter-
national Industrial List of COCOM shall be sub-
ject to control under this title and not under the
Arms Export Control Act; and
ƒ(C) no item may be included on both the
control index and the United States Munitions
List after publication of the lists required under
235
paragraph (4) and resolution of any dispute
with respect to such lists under paragraph (5).
ƒ(2) EXCEPTIONS.—(A) An item described in
subparagraph (B) that is not on the International
Munitions List may be subject to control under the
Arms Export Control Act—
ƒ(i)(I) for a period of 9 months after the
date on which the United States proposes to
COCOM that the item be added to the Inter-
national Munitions List; and
ƒ(II) for an additional 9-month period, but
only if negotiations in COCOM to add the item
to the International Munitions List are continu-
ing; or
ƒ(ii) if the Secretary of State, in consulta-
tion with the Secretary, so determines, except
that if the Secretary disagrees with the Secretary
of State with respect to such item, the item may
be subject to control under the Arms Export Con-
trol Act only if the disagreement is resolved by
the Secretaries or by the President pursuant to
the procedures set forth in subparagraphs (B)
and (C) of paragraph (5).
ƒ(B) An item referred to in subparagraph (A) is
an item that—
236
ƒ(i) is specifically designed, developed, con-
figured, adapted, or modified for military or in-
telligence application;
ƒ(ii) does not have significant civil appli-
cations; and
ƒ(iii) is not a component the performance
capacity and function of which are essentially
equivalent to those used for civil applications.
ƒ(3) PRESIDENTIAL DETERMINATIONS.—An item
that is not on the International Munitions List may
be subject to control under the Arms Export Control
Act if the President—
ƒ(A) determines that extraordinary cir-
cumstances exist affecting the national security
of the United States, which require that the item
be controlled under the Arms Export Control Act;
ƒ(B) proposes to COCOM that the item be
added to the International Munitions List; and
ƒ(C) not later than 10 days after making
the determination under subparagraph (A), sub-
mits a report to the Speaker of the House of Rep-
resentatives and the President pro tempore of the
Senate, describing in detail the reasons for the
determination, in appropriate classified form, as
necessary.
237
ƒ(4) PUBLICATION OF LISTS.—
ƒ(A)(i) Not later than 3 months after the
date of the enactment of this Act, the Secretary
shall publish the control index and the Secretary
of State shall publish the United States Muni-
tions List, with all revisions that have been
made in accordance with this subsection.
ƒ(ii) Not later than 3 months after the date
of the enactment of this Act, the Secretary of
State shall publish in a separate list those items
remaining subject to control under the Arms Ex-
port Control Act under paragraph (2).
ƒ(iii) The publications required by clauses
(i) and (ii) shall be made in the Federal Reg-
ister.
ƒ(B) If either the Secretary or the Secretary
of State fails to publish a revised list in accord-
ance with subparagraph (A), there shall be ex-
cluded from the list of the Secretary that did not
so publish a revised list any item included on the
list of the Secretary that did so publish a revised
list.
ƒ(5) COMMODITY JURISDICTION DISPUTE RESO-
LUTION.—
ƒ(A) Whenever—
238
ƒ(i) the Secretary or the Secretary of
State receives a request to determine wheth-
er an item is subject to control under this
title or the Arms Export Control Act,
ƒ(ii) either Secretary finds that an
item is included on both the control index
and the United States Munitions List,
ƒ(iii) an item appearing on the list of
one Secretary under paragraph (4)(A)(i) is
considered by the other Secretary to be
under the jurisdiction of that other Sec-
retary, or
ƒ(iv) the Secretary disagrees with the
inclusion of an item on the list published
under paragraph (4)(A)(ii),
the Secretary or the Secretary of State (as the
case may be) shall refer the matter and any rel-
evant information to the other Secretary.
ƒ(B) The 2 Secretaries shall have a period
of 15 days following the referral of a matter
under subparagraph (A) to resolve any dif-
ferences with respect to the matter involved.
ƒ(C) If the 2 Secretaries fail to resolve such
differences within that 15-day period, either Sec-
retary may refer the matter to the President,
239
who, not later than 15 days after receiving the
referral, shall notify the 2 Secretaries of his de-
termination on the matter in dispute.
ƒ(D) In the event that either the Secretary
or the Secretary of State does not respond to a
referral under subparagraph (A) by the other
Secretary, the Secretary that did not so respond
shall be deemed to concur with the other Sec-
retary on the matter involved.
ƒ(6) REFERENCES.—For purposes of this sub-
section, any reference to the ‘‘International Munitions
List’’ or the ‘‘International Industrial List’’ includes
a reference to any successor list to the International
Munitions List or the International Industrial List,
as the case may be.≈
(a) COMMODITY JURISDICTION.—
(1) COORDINATION OF CONTROLS.—The
authority granted under this title and
under section 38 of the Arms Export Con-
trol Act (22 U.S.C. 2778) shall be exercised
in such a manner as to achieve effective
coordination between the licensing sys-
tems under this title and such section 38
and to share information regarding the
trustworthiness of parties.
240
(2) ELIMINATION OF OVERLAPPING CON-
TROLS.—No item may be included on both
the control index and the United States
Munitions List after the effective date of
this title.
(3) COMMODITY
JURISDICTION
DISPUTE
RESOLUTION.—Under such procedures as
the President shall establish, disputes re-
garding conflicting claims of jurisdiction
between the control index and the United
States Munitions List shall be resolved in
a timely fashion by the Department of
State, in consultation with other depart-
ments and agencies. Consultations shall
be 
carried 
out 
through 
committees
chaired by representatives of the Depart-
ment of State at the level of Assistant
Secretary or Under Secretary. The proce-
dures of the committees shall allow the
Department of State or other depart-
ments or agencies to initiate the resolu-
tion of disputes, including in response to
requests made to the Departments of
State and Commerce. Consultation proce-
dures within the committees shall pro-
241
vide for interagency meetings to permit
the free exchange of views regarding ju-
risdictional issues. Disputes that cannot
be resolved may be referred to the Presi-
dent by the Secretary of State, the Sec-
retary of Defense, or the Secretary of
Commerce.
(b) CONTROL
OF ARMS EXPORTS
AND IM-
PORTS.—Section 38 of the Arms Export Control
Act (22 U.S.C. 2778) is amended by striking
subsection (a)(1) and inserting the following:
‘‘(a)(1) In furtherance of world peace and
the security and foreign policy of the United
States, the President is authorized to control
the import and the export of defense articles
and defense services and to provide foreign
policy guidance to persons of the United
States involved in the export and import of
such articles and services. The Secretary of
State, with the concurrence of the Secretary
of Defense, is authorized to designate those
items which shall be considered as defense ar-
ticles and defense services for the purposes of
this section. The Secretary of State is also au-
thorized to promulgate regulations for the im-
242
port and export of such articles and services.
The items so designated shall constitute the
United States Munitions List.’’.
ƒ(b)≈ (c) EXPORT CONTROLS
ON TELECOMMUNI-
CATIONS.—
(1) NO
LICENSE
REQUIRED
FOR
CIVIL
END
USES.—The Secretary shall not require a validated li-
cense for export or authorization for reexport of tele-
communications equipment to civil end users for civil
end uses in any of the republics of the former Soviet
Union, the People’s Republic of China, Poland, the
Czech Republic, Slovakia, Bulgaria, Romania, Alba-
nia, Estonia, Lithuania, Latvia, Cambodia, Laos,
Mongolia, or Vietnam.
(2) DEFINITIONS.—For purposes of this sub-
section, the term ‘‘telecommunications equipment’’ in-
cludes—
(A) those items described in the Advisory
Notes to Category 5 of the Commerce Control
List set forth in part 799 of title 15, Code of
Federal Regulations, as of April 4, 1994, that in-
dicate likelihood of approval—
(i) for country groups QWY and the
People’s Republic of China,
243
(ii) only for the People’s Republic of
China, or
(iii) to specified destinations in coun-
try group Y; and
(B) those entries and subentries listed in ex-
port control classification numbers 5AO2A (ex-
cept subentries h and i), 5A03A, 5A04A, 5A05A,
5A06A, 5B01A, 5B02A, 5C01A, 5D01A, 5D02A,
and 5D03A of the Commerce Control List set
forth in part 799 of title 15, Code of Federal
Regulations, as of April 4, 1994, but not includ-
ing software designed or modified for the devel-
opment, production, or use of items controlled
under export control classification number
5A01A of the Commerce Control List.
ƒ(c)¿ (d) COMPUTERS AND RELATED EQUIPMENT.—
(1) GENERAL RULE.—Subject to paragraphs (2)
and (3), the Secretary shall have exclusive authority
to control exports of all computer hardware, software,
and technology for information security (including
encryption), except that which is specifically designed
or modified for military use, including command,
control, and intelligence applications.
(2) ITEMS NOT REQUIRING LICENSES.—No vali-
dated license may be required, except pursuant to the
244
Trading With The Enemy Act or the International
Emergency Economic Powers Act (but only to the ex-
tent that the authority of such Act is not exercised to
extend controls imposed under this title), for the ex-
port of—
(A) any software, including software with
encryption capabilities, that is—
(i) generally available, as is, and is de-
signed for installation by the purchaser; or
(ii) in the public domain or publicly
available because it is generally accessible to
the interested public in any form; or
(B) any computing device solely because it
incorporates or employs in any form software
(including software with encryption capabilities)
exempted from any requirement for a validated
license under subparagraph (A).
(3)
SOFTWARE
WITH
ENCRYPTION
CAPABILI-
TIES.—The Secretary shall authorize the export of
software with encryption capabilities for civil end
uses (determined on the basis of the criteria described
in section 105(c)(2)) in any country to which exports
of software of similar capability are permitted for use
by financial institutions not controlled in fact by
245
United States persons, unless there is substantial evi-
dence that such software will be—
(A) diverted to a military end use or an
end use supporting international terrorism;
(B) modified for an end use described in
subparagraph (A); or
(C) reexported without authorization by the
United States that is required.
(4) DEFINITIONS.—As used in this subsection—
(A) the term ‘‘generally available’’ means,
in the case of software (including software with
encryption capabilities), software that is offered
for sale, license, or transfer to any person with-
out restriction through any commercial means,
including, but not limited to, over-the-counter re-
tail sales, mail order transactions, phone order
transactions, electronic distribution, or sale on
approval;
(B) the term ‘‘as is’’ means, in the case of
software (including software with encryption ca-
pabilities), a software program that is not de-
signed, developed, or tailored by the software
company for specific purchasers, except that such
purchasers may supply certain installation pa-
rameters needed by the software program to
246
function properly with the purchaser’s computer
system and may customize the software program
by choosing among options contained in the soft-
ware program;
(C) the term ‘‘is designed for installation by
the purchaser’’ means, in the case of software
(including software with encryption capabilities)
that—
(i) the software company intends for
the purchaser (including any licensee or
transferee), who may not be the actual user
of the software program, to install the soft-
ware program on a computing device and
has supplied the necessary instructions to
do so, except that the company may also
provide telephone help line services for soft-
ware installation, electronic transmission,
or basic operations; and
(ii) the software program is designed
for installation by the purchaser without
further substantial support by the supplier;
(D) the term ‘‘computing device’’ means a
device
which
incorporates
one
or
more
microprocessor-based
central
processing
units
247
that can accept, store, process or provide output
of data; and
(E) the term ‘‘computer hardware’’, when
used in conjunction with information security,
includes, but is not limited to, computer systems,
equipment, application-specific assemblies, mod-
ules, and integrated circuits.
(c) ASSESSMENT OF ENCRYPTION SOFTWARE
MARKET.—
(1) PRESIDENTIAL
REPORT
REQUIRED.—
Not later than 150 days after the date of
enactment of this Act, the President shall
submit a report to the Committee on
Banking, Housing, and Urban Affairs of
the Senate and the Committee on Foreign
Affairs of the House of Representatives.
(2) CONTENTS OF REPORT.—The report
required by paragraph (1) shall—
(A) assess the current and future
international market for computer
software with encryption;
(B) assess the impact of United
States encryption export controls on
the international competitiveness of
the United States computer software
248
industry and their economic con-
sequences, including the impact on ex-
ports and jobs in the United States
computer software industry; and
(C) review the types, quality and
market penetration of foreign pro-
duced encryption software products
and any controls that influence the
international 
marketability 
of
encryption software products.
(3) CONSULTATION.—In preparing the
report required under paragraph (1), the
President shall consult with representa-
tives of the United States computer soft-
ware industry. Confidential business in-
formation provided by United States in-
dustry in the course of preparing the re-
port shall not be disclosed, except with the
permission of the submitter or when ag-
gregated so that the source of the infor-
mation cannot be identified.
ƒ(d)≈ (e) IN GENERAL.—To the extent provided in
this title, this title shall be construed to modify, repeal, su-
persede, and otherwise affect the provisions of any other
249
laws authorizing control over exports of any commodities
or technology.
ƒ(e) COORDINATION
OF CONTROLS.—The authority
granted under this title and under section 38 of the Arms
Export Control Act (22 U.S.C. 2778) shall be exercised in
such a manner as to share information regarding the trust-
worthiness of parties.
ƒ(f) CIVIL AIRCRAFT EQUIPMENT.—Notwithstanding
any other provision of law, any civil aircraft product, or
any technology used in a civil aircraft product, that is
standard equipment certified or scheduled to be certified by
the Federal Aviation Administration and is an integral
part of such aircraft, shall be subject to export controls ex-
clusively under this title.≈
(f) CIVIL AIRCRAFT EQUIPMENT.—Notwith-
standing any other provision of law, any civil
aircraft product that is standard equipment
certified by the Federal Aviation Administra-
tion and is an integral part of such aircraft
shall be subject to export controls exclusively
under this title.
(g) NONPROLIFERATION CONTROLS.—The provisions
of section 109 shall supersede the procedures published pur-
suant to section 309(c) of the Nuclear Non-Proliferation Act
250
of 1978 (42 U.S.C. 2139a(c)) to the extent such procedures
are inconsistent with the provisions of section 109.
(h) AMENDMENTS
TO
THE INTERNATIONAL EMER-
GENCY ECONOMIC POWERS ACT.—
(1) 
PRESIDENTIAL
AUTHORIZATION.—Section
203(a) of the International Emergency Economic
Powers Act (50 U.S.C. 1702(a)) is amended—
(A) by redesignating paragraphs (2) and
(3) as paragraphs (3) and (4), respectively, and
(B) by inserting after paragraph (1) the fol-
lowing new paragraph:
‘‘(2) The President may prohibit or curtail the expor-
tation of any items on the United States Commodity Con-
trol Index that are subject to the jurisdiction of the United
States under this title only to the extent provided in, and
subject to the criteria of, sections 105, 106, and 114 of the
Export Act of 1994, unless such prohibition or curtailment
is part of an embargo (as described in section 106(f)(1) of
the Export Act of 1994) against the country concerned. The
preceding sentence shall continue to apply notwithstanding
the expiration of the Export Act of 1994.’’.
(2) CONFIDENTIALITY
OF
INFORMATION.—The
International Emergency Economic Powers Act is
amended—
251
(A) by redesignating section 208 as section
209; and
(B) by inserting after section 207 the fol-
lowing:
‘‘SEC. 208. CONFIDENTIALITY OF INFORMATION.
‘‘(a) EXEMPTIONS FROM DISCLOSURE.—Information
obtained under this title before or after the enactment of
this section may be withheld only to the extent permitted
by statute, except that information submitted, obtained, or
considered in connection with an application for an export
license or other export authorization under this title, in-
cluding the export license or other export authorization it-
self, classification requests, information or evidence ob-
tained in the course of any investigation, and information
obtained or furnished under this title in connection with
international agreements, treaties, or obligations shall be
withheld from public disclosure unless the release of such
information is determined by the Secretary to be in the na-
tional interest.
‘‘(b) INFORMATION TO CONGRESS AND GAO.—
‘‘(1) IN GENERAL.—Nothing in this title shall be
construed as authorizing the withholding of informa-
tion from the Congress or from the General Account-
ing Office.
‘‘(2) AVAILABILITY TO THE CONGRESS.—
252
‘‘(A) IN
GENERAL.—All information ob-
tained at any time under this title regarding the
control of exports, including any report or li-
cense application required under this title, shall
be made available to any committee or sub-
committee of Congress of appropriate jurisdic-
tion upon the request of the chairman or ranking
minority member of such committee or sub-
committee.
‘‘(B) PROHIBITION
ON
FURTHER
DISCLO-
SURE.—No committee, subcommittee, or Member
of Congress shall disclose any information ob-
tained under this title or previous Acts regarding
the control of exports which is submitted on a
confidential basis to the Congress under subpara-
graph (A) unless the full committee to which the
information is made available determines that
the withholding of the information is contrary to
the national interest.
‘‘(3) AVAILABILITY TO THE GAO.—
‘‘(A) IN GENERAL.—Notwithstanding para-
graph (1), information referred to in paragraph
(2) shall, consistent with the protection of intel-
ligence, counterintelligence, and law enforcement
sources, methods, and activities, as determined
253
by the agency that originally obtained the infor-
mation, and consistent with the provisions of
section 716 of title 31, United States Code, be
made available only by the agency, upon request,
to the Comptroller General of the United States
or to any officer or employee of the General Ac-
counting Office authorized by the Comptroller
General to have access to such information.
‘‘(B) PROHIBITION
ON
FURTHER
DISCLO-
SURES.—No officer or employee of the General
Accounting Office shall disclose, except to the
Congress in accordance with this subsection, any
such information which is submitted on a con-
fidential basis and from which any individual
can be identified.
‘‘(c) PENALTIES FOR DISCLOSURE OF CONFIDENTIAL
INFORMATION.—Any officer or employee of the United
States, or any department or agency thereof, who publishes,
divulges, discloses, or makes known in any manner or to
any extent not authorized by law any information that—
‘‘(1) he or she obtains in the course of his or her
employment or official duties or by reason of any ex-
amination or investigation made by, or report or
record made to or filed with, such department or
agency, or officer or employee thereof, and
254
‘‘(2) is exempt from disclosure under this section,
shall be fined not more than $10,000, or imprisoned not
more than 1 year, or both, shall be removed from office or
employment, and shall be subject to a civil penalty of not
more than $1,000.’’.
ƒ(i) REGULATION OF EXPORT OF CERTAIN COMMER-
CIAL
COMMUNICATIONS
SATELLITES
AND
ASSOCIATED
EQUIPMENT.—
ƒ(1) REGULATION SOLELY UNDER THIS TITLE.—
Notwithstanding any other provision of law, the ex-
port of commercial communications satellites, includ-
ing any integral components of such satellites, which
are designed for civil applications, including items
necessary to achieve the ultimate orbit location of
such satellites, and associated ground and test equip-
ment, when exported as part of a satellite system for
purposes of launch, shall be regulated under this title.
The Secretary shall consult with the Secretary of De-
fense and the Secretary of State to determine the sat-
ellites and components to which this paragraph ap-
plies. The Secretary, in consultation with the Sec-
retary of State and the Secretary of Defense, shall
prohibit the unauthorized transfer of missile equip-
ment, data, or technology that are components of any
such satellite which is authorized for export.
255
ƒ(2) AMENDMENT
TO
ARMS
EXPORT
CONTROL
ACT.—Section 38(a) of the Arms Export Control Act
(22 U.S.C. 2778(a)) is amended—
ƒ(A) in paragraph (3), by striking ‘‘In ex-
ercising the authorities’’ and inserting ‘‘Except
as provided in paragraph (4), in exercising the
authorities’’; and
ƒ(B) by adding at the end the following
new paragraph:
ƒ‘‘(4) The export of commercial communications sat-
ellites, including any integral components of such satellites,
which are designed for civil applications, including items
necessary to achieve the ultimate orbit location of such sat-
ellites, and associated ground and test equipment, when ex-
ported as part of a satellite system for purposes of launch,
may be regulated only by the Secretary of Commerce under
the Export Act of 1994, pursuant to section 117(i)(1) of
that Act.’’.
ƒ(3) APPLICABILITY.—The amendments made by
this subsection shall apply only with respect to the ex-
port of satellites on or after the date of the enactment
of this Act.≈
SEC. 118. SECONDARY ARAB BOYCOTT.
(a) FINDINGS.—The Congress finds that—
256
(1) certain countries maintain an economic boy-
cott of Israel, including a secondary boycott of compa-
nies that refuse to cooperate with the economic boycott
of Israel;
(2) the secondary Arab boycott has caused eco-
nomic damage to the countries that maintain the boy-
cott as well as to Israel;
(3) the secondary Arab boycott causes great dif-
ficulties for United States firms that trade with Is-
rael, depriving them of trade opportunities and vio-
lating internationally accepted principles of free
trade;
(4) the United States has a longstanding policy
opposing the Arab League boycott of Israel and Unit-
ed States law prohibits American firms from provid-
ing information to Arab countries to demonstrate
compliance with the boycott;
(5) American companies on the list maintained
by the Arab League of companies prohibited from
doing business in Arab League countries can be de-
nied contracts by the Kuwaiti Government for the re-
construction of Kuwait because they conduct business
with Israel;
(6) under the leadership of the executive branch,
the United States has sent a clear, consistent, and un-
257
ambiguous message that the Arab League boycott of
companies that do business with Israel is an obstacle
to peace and should be terminated;
(7) the United States Trade Representative, in
August 1993, commissioned the International Trade
Commission to undertake a study of the boycott’s im-
pact on United States businesses which will provide,
for the first time, a carefully researched estimate of
the impact of the boycott on the United States;
(8) the executive branch has conducted an active
diplomatic campaign to convince Arab League coun-
tries that the time to end the secondary Arab boycott
and the economic discrimination against United
States businesses is now;
(9) under United States leadership, the G–7
countries have unconditionally called for an end to
the Arab boycott;
(10) the President, the Vice President, the Sec-
retary of State, the Secretary of Commerce, and other
senior executive branch officials have assured the Con-
gress that they will speak forcefully and candidly, in
every forum which touches upon the search for peace
in the Middle East, about the need to end the second-
ary Arab boycott;
258
(11) the Congress wishes to support the efforts of
the executive branch and to help see the promises
made to date translated into tangible results;
(12) the quarterly reports from the Office of
Anti-Boycott Compliance of the Department of Com-
merce show no loosening in enforcement by Arab
League countries of the secondary Arab boycott; and
(13) the recent statements made by Arab leaders
indicating that the secondary Arab boycott is no
longer being enforced must be translated into action,
as measured by quarterly reports from the Office of
Anti-Boycott Compliance of the Department of Com-
merce.
(b) SENSE OF CONGRESS.—
(1) ENDING
SECONDARY
BOYCOTT.—It is the
sense of the Congress that the countries of the Arab
League should end the secondary Arab boycott.
(2) ACTIONS TO END SECONDARY BOYCOTT.—The
United States will consider the secondary Arab boy-
cott to have ended when—
(A) the Arab League issues a public pro-
nouncement that the Arab League has ended the
secondary Arab boycott;
259
(B) all activities carried out by the Central
Office for the Boycott of Israel in support of the
secondary Arab boycott have been terminated;
(C) the Arab League and the individual
countries that are members of the Arab League
have terminated the practice of barring United
States persons and foreign companies that do not
comply with the secondary Arab boycott from
doing business with countries that are members
of the Arab League, and have declared null and
void any existing list of such barred persons and
companies; and
(D) the Arab League, and the individual
countries that are the members of the Arab
League, have ceased requesting United States
persons from taking actions prohibited under
section 108(a).
(c) DEFINITION.—For purposes of this section, the
term ‘‘secondary Arab boycott’’ means the refusal to do busi-
ness with persons who do not comply with requests to take
any action prohibited under section 108(a) with respect to
Israel.
SEC. 119. CONFORMING AMENDMENTS TO OTHER LAWS.
(a) ARMS EXPORT CONTROL ACT.—
260
(1) Section 38 of the Arms Export Control Act
(22 U.S.C. 2778) is amended—
(A) in subsection (e)—
(i) in the first sentence by striking
‘‘subsections (c)’’ and all that follows
through ‘‘12 of such Act’’ and inserting
‘‘subsections (b), (c), (d) and (e) of section
110 of the Export Act of 1994, by sub-
sections (a) and (b) of section 113 of such
Act, and by section 114(g) of such Act’’; and
(ii) in the third sentence by striking
‘‘11(c) of the Export Administration Act of
1979’’ and inserting ‘‘110(c) of the Export
Act of 1994’’; and
(B) in subsection (g)(1)(A) by striking
clause (ii) and inserting the following:
‘‘(ii) section 110 of the Export Act of
1994,’’.
(2) Section 39A(c) of the Arms Export Control
Act, as added by the Foreign Relations Authorization
Act, Fiscal Years 1994 and 1995, is amended—
(A) by striking ‘‘(c),’’ and all that follows
through ‘‘12(a)’’ and inserting ‘‘(c), (d), and (e)
of section 110, section 112(c), and subsections (a)
261
and (b) of section 113, of the Export Act of
1994’’; and
(B) by striking ‘‘11(c)’’ and inserting
‘‘110(c)’’.
(3) Section 40(k) of the Arms Export Control Act
(22 U.S.C. 2780(k)) is amended—
(A) by striking ‘‘11(c), 11(e), 11(g), and
12(a) of the Export Administration Act of 1979’’
and inserting ‘‘110(b), 110(c), and 110(e) of the
Export Act of 1994’’; and
(B) by striking ‘‘11(c)’’ and inserting
‘‘110(c)’’.
(4) Sections 72 and 73 of the Arms Export Con-
trol Act (22 U.S.C. 2797a and 2797b) are hereby re-
pealed.
(5) Section 73A of the Arms Export Control Act,
as added by the Foreign Relations Authorization Act,
Fiscal Years 1994 and 1995, is amended by striking
‘‘a MTCR adherent’’ and inserting ‘‘an MTCR adher-
ent’’.
(6) Section 74 of the Arms Export Control Act
(22 U.S.C. 2797c) is amended—
(A) by striking paragraphs (6), (7), (8),
and (9);
262
(B) in paragraph (4) by adding ‘‘and’’
after the semicolon; and
(C) in paragraph (5) by striking the semi-
colon and inserting a period.
(b) CHEMICAL
AND
BIOLOGICAL
WEAPONS.—The
Chemical and Biological Weapons Control and Warfare
Elimination Act of 1991 (title III of Public Law 102–182;
22 U.S.C. 5601 and following) is hereby repealed.
(c) OTHER PROVISIONS OF LAW.—
(1) Section 5(b)(4) of the Trading with the
Enemy Act (12 U.S.C. 95a(4); 50 U.S.C. App.
5(b)(4)) is amended by striking ‘‘5 of the Export Ad-
ministration Act of 1979, or under section 6’’ and in-
serting ‘‘105 of the Export Act of 1994, or under sec-
tion 106’’.
(2) Section 16(a) of the Trading with the Enemy
Act (50 U.S.C. App. 16(a)) is amended by striking
‘‘participants’’ and inserting ‘‘participates’’.
(3) Section 502B(a)(2) of the Foreign Assistance
Act of 1961 (22 U.S.C. 2304(a)(2)) is amended in the
second sentence—
(A) by striking ‘‘Export Administration Act
of 1979’’ the first place it appears and inserting
‘‘Export Act of 1994’’; and
263
(B) by striking ‘‘Administration Act of
1979)’’ and inserting ‘‘Act of 1994)’’.
(4)(A) Section 140(a)(2) of the Foreign Relations
Authorization Act, Fiscal Years 1988 and 1989 (22
U.S.C. 2656f(a)(2)) is amended by striking ‘‘6(j) of
the Export Administration Act of 1979’’ and insert-
ing ‘‘106(i) of the Export Act of 1994’’.
(B) For purposes of the report required by
March 31, 1995, under section 140(a) of the Foreign
Relations Authorization Act, Fiscal Years 1988 and
1989, the reference in paragraph (2) of such section
to ‘‘section 106(i) of the Export Act of 1994’’ shall be
deemed to refer to ‘‘section 6(j) of the Export Admin-
istration Act of 1979 or section 106(i) of the Export
Act of 1994’’.
(5) Section 40(e)(1) of the State Department
Basic Authorities Act of 1956 (22 U.S.C. 2712(e)(1))
is amended by striking ‘‘6(j)(1) of the Export Admin-
istration Act of 1979’’ and inserting ‘‘106(i)(1) of the
Export Act of 1994’’.
(6) Section 110 of the International Security
and Development Cooperation Act of 1980 (22 U.S.C.
2778a) is amended by striking ‘‘Administration Act
of 1979’’ and inserting ‘‘Act of 1994’’.
264
(7) Section 205(d)(4) of the State Department
Basic Authorities Act of 1956 (22 U.S.C. 4305(d)(4))
is amended by striking ‘‘6(j) of the Export Adminis-
tration Act of 1979’’ and inserting ‘‘106(i) of the Ex-
port Act of 1994’’.
(8) Section 203(b)(3) of the International Emer-
gency Economic Powers Act (50 U.S.C. 1702(b)(3)) is
amended by striking ‘‘5 of the Export Administration
Act of 1979, or under section 6’’ and inserting ‘‘105
of the Export Act of 1994, or under section 106’’.
(9) Section 491(f) of the Forest Resources Con-
servation and Shortage Relief Act of 1990 (16 U.S.C.
620c(f)) is amended by striking ‘‘supersede section
7(i) of the Export Administration Act of 1979 (50
U.S.C. App. 2406(i))’’ and inserting ‘‘affect section
107(i) of the Export Act of 1994’’.
SEC. 120. EFFECTIVE DATE.
This title shall take effect upon the expiration of the
Export Administration Act of 1979.
SEC. 121. EXPIRATION DATE.
This title expires on June 30, 1998.
SEC. 122. SAVINGS PROVISIONS.
(a) IN GENERAL.—All delegations, rules, regulations,
orders, determinations, licenses, or other forms of adminis-
265
trative action which have been made, issued, conducted, or
allowed to become effective under—
(1) the Export Control Act of 1949, the Export
Administration Act of 1969, or the Export Adminis-
tration Act of 1979, or
(2) those provisions of the Arms Export Control
Act or the Chemical and Biological Weapons Control
and Warfare Elimination Act of 1991 which are re-
pealed and amended by section 119,
and are in effect at the time this title takes effect, shall con-
tinue in effect according to their terms until modified, su-
perseded, set aside, or revoked under this title.
(b) ADMINISTRATIVE AND JUDICIAL PROCEEDINGS.—
(1) EXPORT
ADMINISTRATION
ACT.—This title
shall not affect any administrative or judicial pro-
ceedings commenced or any application for a license
made, under the Export Administration Act of 1979,
which is pending at the time this title takes effect.
Any such proceedings, and any action on such appli-
cation, shall continue under the Export Administra-
tion Act of 1979 as if that Act had not expired.
(2) OTHER PROVISIONS OF LAW.—This title shall
not affect any administrative or judicial proceedings
commenced or any application for a license made,
under those provisions of the Arms Export Control
266
Act or the Chemical and Biological Weapons Control
and Warfare Elimination Act of 1991 which are re-
pealed and amended by section 119, if such proceed-
ings or application is pending at the time this title
takes effect. Any such proceedings, and any action on
such application, shall continue under those provi-
sions as if those provisions had not been amended or
repealed by section 119.
(c) TREATMENT OF CERTAIN DETERMINATIONS.—Any
determination with respect to the government of a foreign
country under section 6(j) of the Export Administration Act
of 1979, that is in effect at the time this title takes effect,
shall, for purposes of this title or any other provision of
law, be deemed to be made under section 106(i) of this Act
until superseded by a determination under such section
106(i).
TITLE 
II—NUCLEAR 
PROLIF-
ERATION PREVENTION ACT
SEC. 201. SHORT TITLE.
This title may be cited as the ‘‘Nuclear Proliferation
Prevention Act of 1994’’.
PART A—REPORTING ON NUCLEAR EXPORTS
SEC. 211. REPORTS TO CONGRESS.
Section 601(a) of the Nuclear Non-Proliferation Act of
1978 (22 U.S.C. 3281(a)) is amended—
267
(1) in paragraph (4), by striking ‘‘and’’ after the
semicolon;
(2) in paragraph (5), by striking the period and
inserting a semicolon; and
(3) by adding after paragraph (5) the following:
‘‘(6) a description of the implementation of nu-
clear and nuclear-related dual-use export controls in
the preceding calendar year, including a summary by
type of commodity and destination of—
‘‘(A) all transactions for which—
‘‘(i) an export license was issued for
any good controlled under section 309(c) of
this Act;
‘‘(ii) an export license was issued
under section 109 b. of the 1954 Act;
‘‘(iii) approvals were issued under the
Export Act of 1994, or section 109 b.(3) of
the 1954 Act, for the retransfer of any item,
technical data, component, or substance; or
‘‘(iv) authorizations were made as re-
quired by section 57 b.(2) of the 1954 Act
to engage, directly or indirectly, in the pro-
duction of special nuclear material;
‘‘(B) each instance in which—
268
‘‘(i) a sanction has been imposed under
section 221(a), 224(h), or 226(a) of the Nu-
clear Proliferation Prevention Act of 1994;
‘‘(ii) sales or leases have been denied
under section 3(f) of the Arms Export Con-
trol Act or transactions prohibited by rea-
son of acts relating to proliferation of nu-
clear explosive devices as described in sec-
tion 40(d) of that Act;
‘‘(iii) a sanction has not been imposed
by reason of section 221(c)(2) of the Nuclear
Proliferation Prevention Act of 1994 or the
imposition of a sanction has been delayed
under section 226(d) of that Act; or
‘‘(iv) a waiver of a sanction has been
made under—
‘‘(I) section 221(f), section 224, or
subsection (e) or (f)(2) of section 226,
of the Nuclear Proliferation Prevention
Act of 1994,
‘‘(II) section 620E(d) of the For-
eign Assistance Act of 1961,
‘‘(III) section 40(g) of the Arms
Export Control Act with respect to the
269
last sentence of section 40(d) of that
Act, or
‘‘(IV) section 614 of the Foreign
Assistance Act of 1961 with respect to
section 620E of that Act or section 3(f),
or the last sentence of section 40(d), of
the Arms Export Control Act; and
‘‘(7) the progress of those independent states of
the former Soviet Union that are non-nuclear-weapon
states and of the Baltic states towards achieving the
objective of applying full scope safeguards to all their
peaceful nuclear activities.
Portions of the information required by paragraphs (6) and
(7) may be submitted in classified form, as necessary. Any
such information that may not be published or disclosed
under section 114(g)(1) of the Export Act of 1994 shall be
submitted as confidential.’’.
SEC. 212. EFFECTIVE DATE.
The amendments made by this part shall take effect
60 days after the date of the enactment of this Act.
270
PART B—SANCTIONS FOR NUCLEAR
PROLIFERATION
SEC. 221. IMPOSITION OF SANCTIONS ON PERSONS ENGAG-
ING IN EXPORT ACTIVITIES THAT CONTRIB-
UTE TO PROLIFERATION.
(a) DETERMINATION BY THE PRESIDENT.—
(1) IN GENERAL.—Except as provided in sub-
section (b)(2), the President shall impose the sanc-
tions described in subsection (c) if the President deter-
mines in writing that, on or after the effective date
of this part, a foreign person or a United States per-
son has materially and with requisite knowledge con-
tributed, through the export from the United States or
any other country of any goods or technology (as de-
fined in section 231(2)), to the efforts by any individ-
ual, group, or non-nuclear-weapon state to acquire
unsafeguarded special nuclear material or to use, de-
velop, produce, stockpile, or otherwise acquire any nu-
clear explosive device.
(2) PERSONS AGAINST WHICH THE SANCTIONS
ARE TO BE IMPOSED.—The sanctions shall be imposed
pursuant to paragraph (1) on—
(A) the foreign person or United States per-
son with respect to which the President makes
the determination described in that paragraph;
271
(B) any successor entity to that foreign per-
son or United States person;
(C) any foreign person or United States
person that is a parent or subsidiary of that per-
son if that parent or subsidiary materially and
with requisite knowledge assisted in the activities
which were the basis of that determination; and
(D) any foreign person or United States
person that is an affiliate of that person if that
affiliate materially and with requisite knowledge
assisted in the activities which were the basis of
that determination and if that affiliate is con-
trolled in fact by that person.
(3) OTHER SANCTIONS AVAILABLE.—The sanc-
tions which are required to be imposed for activities
described in this subsection is in addition to any
other sanction which may be imposed for the same ac-
tivities under any other provision of law.
(4) DEFINITION.—For purposes of this sub-
section, the term ‘‘requisite knowledge’’ means situa-
tions in which a person ‘‘knows’’, as ‘‘knowing’’ is de-
fined in section 104 of the Foreign Corrupt Practices
Act of 1977 (15 U.S.C. 78dd–2).
(b) CONSULTATION WITH AND ACTIONS BY FOREIGN
GOVERNMENT OF JURISDICTION.—
272
(1) CONSULTATIONS.—If the President makes a
determination described in subsection (a)(1) with re-
spect 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 the
sanctions 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 the sanctions pursuant to this section for up to 90
days. Following these consultations, the President
shall impose the sanctions unless the President deter-
mines and certifies in writing to the Congress that
that government has taken specific and effective ac-
tions, including appropriate penalties, to terminate
the involvement of the foreign person in the activities
described in subsection (a)(1). The President may
delay the imposition of the sanctions for up to an ad-
ditional 90 days if the President determines and cer-
tifies in writing to the Congress that that government
is in the process of taking the actions described in the
preceding sentence.
(3) REPORT TO CONGRESS.—Not later than 90
days after making a determination under subsection
273
(a)(1), the President shall submit to the Committee on
Foreign Relations and the Committee on Govern-
mental Affairs of the Senate and the Committee on
Foreign Affairs of the House of Representatives a re-
port on the status of consultations with the appro-
priate government under this subsection, and the
basis for any determination under paragraph (2) of
this subsection that such government has taken spe-
cific corrective actions.
(c) SANCTIONS.—
(1) DESCRIPTION OF SANCTIONS.—The sanctions
to be imposed pursuant to subsection (a)(1) are, ex-
cept as provided in paragraph (2) of this subsection,
the following:
(A) The United States Government shall not
procure, or enter into any contract for the pro-
curement of, any goods or services from any per-
son described in subsection (a)(2).
(B) The importation into the United States
of products produced by any person described in
subsection (a)(2) shall be prohibited.
(2) EXCEPTIONS.—The President shall not be re-
quired to apply or maintain the sanctions under this
section—
274
(A) in the case of procurement of defense ar-
ticles or defense services—
(i) under existing contracts or sub-
contracts, including the exercise of options
for production quantities to satisfy require-
ments essential to the national security of
the United States;
(ii) if the President determines in
writing that the person or other entity to
which the sanctions would otherwise be ap-
plied is a sole source supplier of the defense
articles or services, that the defense articles
or services are essential, and that alter-
native sources are not readily or reasonably
available; or
(iii) if the President determines in
writing that such articles or services are es-
sential to the national security under de-
fense coproduction agreements;
(B) to products or services provided under
contracts entered into before the date on which
the President publishes his intention to impose
the sanctions;
(C) to—
275
(i) spare parts which are essential to
United States products or production;
(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 reasonably
available;
(D) to information and technology essential
to United States products or production; or
(E) to medical or other humanitarian
items.
(d) ADVISORY OPINIONS.—Upon the request of any
person, the Secretary of State may, in consultation with
the Secretary of Defense, issue in writing an advisory opin-
ion to that person as to whether a proposed activity by that
person would subject that person to the sanctions under this
section. Any person who relies in good faith on such an
advisory opinion which states that the proposed activity
would not subject a person to such sanctions, and any per-
son who thereafter engages in such activity, may not be
made subject to such sanctions on account of such activity.
(e) TERMINATION OF THE SANCTIONS.—The sanctions
imposed pursuant to this section shall apply for a period
276
of at least 12 months following the imposition of the sanc-
tions and shall cease to apply thereafter only if the Presi-
dent determines and certifies in writing to the Congress
that—
(1) reliable information indicates that the for-
eign person or United States person with respect to
which the determination was made under subsection
(a)(1) has ceased to aid or abet any individual,
group, or non-nuclear-weapon state in its efforts to
acquire unsafeguarded special nuclear material or
any nuclear explosive device, as described in that sub-
section; and
(2) the President has received reliable assurances
from the foreign person or United States person, as
the case may be, that such person will not, in the fu-
ture, aid or abet any individual, group, or non-nu-
clear-weapon 
state 
in 
its 
efforts 
to 
acquire
unsafeguarded special nuclear material or any nu-
clear explosive device, as described in subsection
(a)(1).
(f) WAIVER.—
(1) CRITERION
FOR
WAIVER.—The President
may waive the application of the sanctions imposed
on any person pursuant to this section, after the end
of the 12-month period beginning on the date on
277
which that sanctions was imposed on that person, if
the President determines and certifies in writing to
the Congress that the continued imposition of the
sanctions would have a serious adverse effect on vital
United States interests.
(2) NOTIFICATION
OF
AND
REPORT
TO
CON-
GRESS.—If the President decides to exercise the waiv-
er authority provided in paragraph (1), the President
shall so notify the Congress not less than 20 days be-
fore the waiver takes effect. Such notification shall in-
clude a report fully articulating the rationale and
circumstances which led the President to exercise the
waiver authority.
SEC. 222. ELIGIBILITY FOR ASSISTANCE.
(a) AMENDMENTS TO THE ARMS EXPORT CONTROL
ACT.—
(1) PROHIBITION.—Section 3 of the Arms Ex-
port Control Act (22 U.S.C. 2753) is amended by
adding at the end the following new subsection:
‘‘(f) No sales or leases shall be made to any country
that the President has determined is in material breach of
its binding commitments to the United States under inter-
national treaties or agreements concerning the nonprolifera-
tion of nuclear explosive devices (as defined in section
231(4) of the Nuclear Proliferation Prevention Act of 1994)
278
and unsafeguarded special nuclear material (as defined in
section 231(8) of that Act).’’.
(2) DEFINITION
OF
SUPPORT
FOR
INTER-
NATIONAL TERRORISM.—Section 40 of such Act (22
U.S.C. 2780) is amended—
(A) in subsection (d), by adding at the end
the following new sentence: ‘‘For purposes of this
subsection, such acts shall include all activities
that the Secretary determines willfully aid or
abet the international proliferation of nuclear ex-
plosive devices to individuals or group or will-
fully aid or abet an individual or groups in ac-
quiring unsafeguarded special nuclear mate-
rial.’’; and
(B) in subsection (l)—
(i) in paragraph (2), by striking
‘‘and’’ after the semicolon;
(ii) in paragraph (3), by striking the
period at the end and inserting a semicolon;
and
(iii) by adding at the end the follow-
ing:
‘‘(4) the term ‘nuclear explosive device’ has the
meaning given that term in section 231(4) of the Nu-
clear Proliferation Prevention Act of 1994; and
279
‘‘(5) the term ‘unsafeguarded special nuclear ma-
terial’ has the meaning given that term in section
231(8) of the Nuclear Proliferation Prevention Act of
1994.’’.
(b) FOREIGN ASSISTANCE ACT OF 1961.—
(1) PRESIDENTIAL DETERMINATION 82–7.— Not-
withstanding any other provision of law, Presidential
Determination No. 82–7 of February 10, 1982, made
pursuant to section 670(a)(2) of the Foreign Assist-
ance Act of 1961, shall have no force or effect with re-
spect to any grounds for the prohibition of assistance
under section 102(a) of the Arms Export Control Act
arising on or after the effective date of this part.
(2) AMENDMENT.—Section 620E(d) of the For-
eign Assistance Act of 1961 (22 U.S.C. 2375(d)) is
amended to read as follows:
‘‘(d) The President may waive the prohibitions of sec-
tion 101 of the Arms Export Control Act with respect to
any grounds for the prohibition of assistance under that
section arising before the effective date of part B of the Nu-
clear Proliferation Prevention Act of 1994 to provide assist-
ance to Pakistan if he determines that to do so is in the
national interest of the United States.’’.
280
SEC. 223. ROLE OF INTERNATIONAL FINANCIAL INSTITU-
TIONS.
(a) IN GENERAL.—The Secretary of the Treasury shall
instruct the United States executive director to each of the
international financial institutions described in section
701(a) of the International Financial Institutions Act (22
U.S.C. 262d(a)) to use the voice and vote of the United
States to oppose any use of the institution’s funds to pro-
mote the acquisition of unsafeguarded special nuclear mate-
rial or the development, stockpiling, or use of any nuclear
explosive device by any non-nuclear-weapon state.
(b) DUTIES OF UNITED STATES EXECUTIVE DIREC-
TORS.—Section 701(b)(3) of the International Financial
Institutions Act (22 U.S.C. 262d(b)(3)) is amended to read
as follows:
‘‘(3) whether the recipient country—
‘‘(A) is seeking to acquire unsafeguarded
special nuclear material (as defined in section
231(8) of the Nuclear Proliferation Prevention
Act of 1994) or a nuclear explosive device (as de-
fined in section 231(4) of that Act);
‘‘(B) is not a State Party to the Treaty on
the Non-Proliferation of Nuclear Weapons; or
‘‘(C) has detonated a nuclear explosive de-
vice; and’’.
281
SEC. 224. PROHIBITION ON ASSISTING NUCLEAR PRO-
LIFERATION THROUGH THE PROVISION OF
FINANCING.
(a) PROHIBITED ACTIVITY DEFINED.—For purposes of
this section, the term ‘‘prohibited activity’’ means the act
of knowingly, materially, and directly contributing or at-
tempting to contribute, through the provision of financing,
to—
(1) the acquisition of unsafeguarded special nu-
clear material; or
(2) the use, development, production, stockpiling,
or other acquisition of any nuclear explosive device,
by any individual, group, or non-nuclear-weapon state.
(b) PROHIBITION.—To the extent that the United
States has jurisdiction to prohibit such activity by such per-
son, no United States person and no foreign person may
engage in any prohibited activity.
(c) PRESIDENTIAL DETERMINATION AND ORDER WITH
RESPECT TO UNITED STATES AND FOREIGN PERSONS.—
If the President determines, in writing after opportunity
for a hearing on the record, that a United States person
or a foreign person has engaged in a prohibited activity
(without regard to whether subsection (b) applies), the
President shall, by order, impose the sanctions described in
subsection (d) on such person.
282
(d) SANCTIONS.—The following sanctions shall be im-
posed pursuant to any order issued under subsection (c)
with respect to any United States person or any foreign
person:
(1) BAN
ON
DEALINGS
IN
GOVERNMENT
FI-
NANCE.—
(A) DESIGNATION AS PRIMARY DEALER.—
Neither the Board of Governors of the Federal
Reserve System nor the Federal Reserve Bank of
New York may designate, or permit the continu-
ation of any prior designation of, the person as
a primary dealer in United States Government
debt instruments.
(B) SERVICE AS DEPOSITARY.—The person
may not serve as a depositary for United States
Government funds.
(2) RESTRICTIONS ON OPERATIONS.—The person
may not, directly or indirectly—
(A) commence any line of business in the
United States in which the person was not en-
gaged as of the date of the order; or
(B) conduct business from any location in
the United States at which the person did not
conduct business as of the date of the order.
283
(e) JUDICIAL REVIEW.—Any determination of the
President under subsection (c) shall be subject to judicial
review in accordance with chapter 7 of part I of title 5,
United States Code.
(f) CONSULTATION WITH AND ACTIONS BY FOREIGN
GOVERNMENT OF JURISDICTION.—
(1) CONSULTATIONS.—If the President makes a
determination under subsection (c) with respect to a
foreign person, the Congress urges the President to
initiate consultations immediately with any appro-
priate foreign government with respect to the imposi-
tion of any sanction pursuant to this section.
(2) ACTIONS
BY
GOVERNMENT
OF
JURISDIC-
TION.—
(A) SUSPENSION OF IMPOSITION OF SANC-
TIONS.—In order to pursue consultations de-
scribed in paragraph (1) with any government
referred to in such paragraph, the President may
delay, for up to 90 days, the effective date of an
order under subsection (c) imposing any sanc-
tion.
(B) COORDINATION
WITH
ACTIVITIES
OF
FOREIGN
GOVERNMENT.—Following 
consulta-
tions described in paragraph (1), the order is-
sued by the President under subsection (c) im-
284
posing any sanction on a foreign person shall
take effect unless the President determines, and
certifies in writing to the Congress, that the gov-
ernment referred to in paragraph (1) has taken
specific and effective actions, including the impo-
sition of appropriate penalties, to terminate the
involvement of the foreign person in any prohib-
ited activity.
(C) EXTENSION OF PERIOD.—After the end
of the period described in subparagraph (A), the
President may delay, for up to an additional 90
days, the effective date of an order issued under
subsection (c) imposing any sanction on a for-
eign person if the President determines, and cer-
tifies in writing to the Congress, that the appro-
priate foreign government is in the process of
taking actions described in subparagraph (B).
(3) REPORT TO CONGRESS.—Before the end of
the 90-day period beginning on the date on which an
order is issued under subsection (c), the President
shall submit to the Congress a report on—
(A) the status of consultations under this
subsection with the government referred to in
paragraph (1); and
285
(B) the basis for any determination under
paragraph (2) that such government has taken
specific corrective actions.
(g) TERMINATION OF THE SANCTIONS.—Any sanction
imposed on any person pursuant to an order issued under
subsection (c) shall—
(1) remain in effect for a period of not less than
12 months; and
(2) cease to apply after the end of such 12-month
period only if the President determines, and certifies
in writing to the Congress, that—
(A) the person has ceased to engage in any
prohibited activity; and
(B) the President has received reliable as-
surances from such person that the person will
not, in the future, engage in any prohibited ac-
tivity.
(h) WAIVER.—The President may waive the continued
application of any sanction imposed on any person pursu-
ant to an order issued under subsection (c) if the President
determines, and certifies in writing to the Congress, that
the continued imposition of the sanction would have a seri-
ous adverse effect on the safety and soundness of the domes-
tic or international financial system or on domestic or
international payments systems.
286
(i) ENFORCEMENT ACTION.—The Attorney General
may bring an action in an appropriate district court of
the United States for injunctive and other appropriate relief
with respect to—
(1) any violation of subsection (b); or
(2) any order issued under subsection (c).
(j) KNOWINGLY DEFINED.—
(1) IN GENERAL.—For purposes of this section,
the term ‘‘knowingly’’ means the state of mind of a
person with respect to conduct, a circumstance, or a
result in which—
(A) such person is aware that such person
is engaging in such conduct, that such cir-
cumstance exists, or that such result is substan-
tially certain to occur; or
(B) such person has a firm belief that such
circumstance exists or that such result is sub-
stantially certain to occur.
(2) KNOWLEDGE OF THE EXISTENCE OF A PAR-
TICULAR CIRCUMSTANCE.—If knowledge of the exist-
ence of a particular circumstance is required for an
offense, such knowledge is established if a person is
aware of a high probability of the existence of such
circumstance, unless the person actually believes that
such circumstance does not exist.
287
(k) SCOPE OF APPLICATION.—This section shall apply
with respect to prohibited activities which occur on or after
the date this part takes effect.
SEC. 225. EXPORT-IMPORT BANK.
Section 2(b)(4) of the Export-Import Bank Act of 1945
(12 U.S.C. 635(b)(4)) is amended in the first sentence by
inserting after ‘‘device’’ the following: ‘‘(as defined in sec-
tion 231(4) of the Nuclear Proliferation Prevention Act of
1994), or that any country has willfully aided or abetted
any non-nuclear-weapon state (as defined in section 231(5)
of that Act) to acquire any such nuclear explosive device
or to acquire unsafeguarded special nuclear material (as
defined in section 231(8) of that Act)’’.
SEC. 226. SANCTIONS AGAINST COUNTRIES INVOLVED IN
TRANSFER OF NUCLEAR WEAPONS OR DE-
SIGN INFORMATION OR COMPONENTS.
(a) DETERMINATION OF THE PRESIDENT.—Except as
provided in subsections (d), (e), and (f), in the event that
the President determines that any country, on or after the
effective date of this part—
(1) transfers to a non-nuclear-weapon state a
nuclear explosive device,
(2) is a non-nuclear-weapon state and either—
(A) receives a nuclear explosive device, or
(B) detonates a nuclear explosive device,
290
(6) The United States Government shall prohibit
any United States bank from making any loan or
providing any credit to the government of that coun-
try, except for loans or credits for the purpose of pur-
chasing food or other agricultural commodities.
(7) The authorities of section 106 of the Export
Act of 1994 shall be used to prohibit exports to that
country of specific goods and technology (excluding
food and other agricultural commodities), except that
such prohibition shall not apply to any transaction
subject to the reporting requirements of title V of the
National Security Act of 1947 (relating to congres-
sional oversight of intelligence activities).
Ω(8) In addition to the sanctions pro-
vided for in paragraphs (1) through (7),
the President may prohibit the importa-
tion into the United States of goods that
are the growth, product, or manufacture
of that country. The President shall de-
termine the type and volume of imports
to be prohibited.æ
(c) DEFINITIONS.—As used in this section—
(1) the term ‘‘design information’’ means specific
information that relates to the design of a nuclear ex-
291
plosive device and that is not available to the public;
and
(2) the term ‘‘component’’ means a specific com-
ponent of a nuclear explosive device.
(d) AUTHORITY TO DELAY SANCTIONS RELATING TO
NUCLEAR EXPLOSIVE DEVICES.—
(1) PRESIDENTIAL
CERTIFICATION.—Notwith-
standing subsection (a), the President may, for a pe-
riod of not more than 30 days of continuous session,
delay the imposition of sanctions which would other-
wise be required under subsection (a)(1) or (2) if the
President first transmits to the Speaker of the House
of Representatives, and to the chairman of the Com-
mittee on Foreign Relations of the Senate, a certifi-
cation that he has determined that an immediate im-
position of sanctions on that country would be det-
rimental to the national security of the United States.
Not more than one such certification may be trans-
mitted for a country with respect to the same detona-
tion, transfer, or receipt of a nuclear explosive device.
(2) AUTHORITY TO GRANT WAIVER.—(A) If the
President transmits a certification to the Congress
under paragraph (1), a joint resolution which would
permit the President to exercise the waiver authority
of subsection (e) shall, if introduced in either House
292
within 30 days of continuous session after the Con-
gress receives this certification, be considered in the
Senate in accordance with subparagraph (B).
(B) Any joint resolution under this paragraph
shall be considered in the Senate in accordance with
the provisions of section 601(b) of the International
Security Assistance and Arms Export Control Act of
1976.
(C) For purposes of this paragraph, the term
‘‘joint resolution’’ means a joint resolution the matter
after the resolving clause of which is as follows: ‘‘That
the Congress having received on ll a certification
by the President under section 226(d)(1) of the Nu-
clear Proliferation Prevention Act of 1994 with re-
spect to ll, the Congress hereby authorizes the
President to exercise the waiver authority contained
in section 226(e) of that Act.’’, with the date of receipt
of the certification inserted in the first blank and the
name of the country inserted in the second blank.
(e) WAIVER AUTHORITY.—Notwithstanding subsection
(a), if the Congress enacts a joint resolution under sub-
section (d), the President may waive any sanction which
would otherwise be required under subsection (a)(1) or (2)
if he determines and certifies in writing to the Speaker of
the House of Representatives and the Committee on Foreign
293
Relations of the Senate that the imposition of such sanction
would be seriously prejudicial to the achievement of United
States nonproliferation objectives or otherwise jeopardize
the common defense and security. The President shall trans-
mit with such certification a statement setting forth the spe-
cific reasons therefor.
(f) SANCTIONS RELATING TO INFORMATION AND COM-
PONENTS.—
(1) IMPOSITION.—In the event the President is
required to impose sanctions against a country under
subsection (a)(3) or (a)(4), the President shall forth-
with so inform such country and shall impose the re-
quired sanctions beginning 30 days after submitting
to the Congress the report required by subsection (a)
unless, and to the extent that, there is enacted during
the 30-day period a law prohibiting the imposition of
such sanctions.
(2) WAIVER.—Notwithstanding any other provi-
sion of law, the sanctions which are required to be
imposed against a country under subsection (a)(3) or
(4) shall not apply if the President determines and
certifies in writing to the Committee on Foreign Rela-
tions and the Committee on Governmental Affairs of
the Senate and the Committee on Foreign Affairs of
the House of Representatives that the application of
294
such sanctions against such country would have a se-
rious adverse effect on vital United States interests.
The President shall transmit with such certification a
statement setting forth the specific reasons therefor.
(g) CONTINUITY OF SESSION.—For purposes of this
section, continuity of session is broken only by an adjourn-
ment of the Congress sine die and the days on which either
House of Congress is not in session because of an adjourn-
ment of more than three days to a day certain are excluded
in the computation of any period of time in which the Con-
gress is in continuous session.
(h) AUTHORITY
OF
THE PRESIDENT NOT DELE-
GABLE.—The President may not delegate or transfer his
power, authority, or discretion to make or modify deter-
minations under this section.
SEC. 227. AMENDMENT TO THE ARMS EXPORT CONTROL
ACT.
(a) IN GENERAL.—The Arms Export Control Act is
amended by adding at the end the following new chapter:
‘‘CHAPTER 10—NUCLEAR
NONPROLIFERATION CONTROLS
‘‘SEC. 101. NUCLEAR ENRICHMENT TRANSFERS.
‘‘(a) PROHIBITIONS; SAFEGUARDS
AND
MANAGE-
MENT.—Except as provided in subsection (b), no funds
made available to carry out the Foreign Assistance Act of
295
1961 or this Act may be used for the purpose of providing
economic assistance (including assistance under chapter 4
of part II of the Foreign Assistance Act of 1961), providing
military assistance or grant military education and train-
ing, providing assistance under chapter 6 of part II of that
Act, or extending military credits or making guarantees,
to any country which the President determines delivers nu-
clear enrichment equipment, materials, or technology to
any other country on or after August 4, 1977, or receives
such equipment, materials, or technology from any other
country on or after August 4, 1977, unless before such deliv-
ery—
‘‘(1) the supplying country and receiving coun-
try have reached agreement to place all such equip-
ment, materials, or technology, upon delivery, under
multilateral auspices and management when avail-
able; and
‘‘(2) the recipient country has entered into an
agreement with the International Atomic Energy
Agency to place all such equipment, materials, tech-
nology, and all nuclear fuel and facilities in such
country, under the safeguards system of such Agency.
‘‘(b) CERTIFICATION BY PRESIDENT OF NECESSITY OF
CONTINUED ASSISTANCE; DISAPPROVAL BY CONGRESS.—
(1) Notwithstanding subsection (a), the President may fur-
296
nish assistance which would otherwise be prohibited under
such subsection if he determines and certifies in writing to
the Speaker of the House of Representatives and the Com-
mittee on Foreign Relations of the Senate that—
‘‘(A) the termination of such assistance would
have a serious adverse effect on vital United States
interests; and
‘‘(B) he has received reliable assurances that the
country in question will not acquire or develop nu-
clear weapons or assist other nations in doing so.
Such certification shall set forth the reasons supporting
such determination in each particular case.
‘‘(2)(A) A certification under paragraph (1) shall take
effect on the date on which the certification is received by
the Congress. However, if, within 30 calendar days after
receiving this certification, the Congress enacts a joint reso-
lution stating in substance that the Congress disapproves
the furnishing of assistance pursuant to the certification,
then upon the enactment of that resolution the certification
shall cease to be effective and all deliveries of assistance fur-
nished under the authority of that certification shall be sus-
pended immediately.
‘‘(B) Any joint resolution under this paragraph shall
be considered in the Senate in accordance with the provi-