IB
Union Calendar No. 322
104TH CONGRESS
2D SESSION
H. R. 361
[Report No. 104–605, Parts I and II]
To provide authority to control exports, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 4, 1995
Mr. ROTH introduced the following bill; which was referred to the Committee
on International Relations
JUNE 5, 1996
Reported with an amendment, referred to the Committee on Ways and Means
for a period ending not later than June 28, 1996, for consideration of
such provisions of the bill and amendment as fall within the jurisdiction
of that committee pursuant to clause 1(s) of rule X
[Strike out all after the enacting clause and insert the part printed in italic]
JUNE 27, 1996
Reported from the Committee on Ways and Means, committed to the Commit-
tee of the Whole House on the State of the Union, and ordered to be
printed
[For text of introduced bill, see copy of bill as introduced on January 4, 1995]
A BILL
To provide authority to control exports, and for other
purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 1. Table of contents.
TITLE I—EXPORT ADMINISTRATION
Sec. 101. Short title.
Sec. 102. Findings.
Sec. 103. Policy statement.
Sec. 104. General provisions.
Sec. 105. Multilateral controls.
Sec. 106. Emergency controls.
Sec. 107. Short supply controls.
Sec. 108. Foreign boycotts.
Sec. 109. Procedures for processing export license applications; other inquiries.
Sec. 110. Violations.
Sec. 111. Controlling proliferation activity.
Sec. 112. Administrative and judicial review.
Sec. 113. Enforcement.
Sec. 114. Export control authorities and procedures.
Sec. 115. Annual report.
Sec. 116. Definitions.
Sec. 117. Effects on other Acts.
Sec. 118. Secondary Arab boycott.
Sec. 119. Conforming amendments to other laws.
Sec. 120. Expiration date.
Sec. 121. Savings provision.
TITLE II—NUCLEAR PROLIFERATION PREVENTION
Sec. 201. Repeal of termination of provisions of the Nuclear Proliferation Preven-
tion Act of 1994.
Sec. 202. Seeking multilateral support for unilateral sanctions.
Sec. 203. Sanctions under the Nuclear Proliferation Prevention Act of 1994.
TITLE I—EXPORT
ADMINISTRATION
SEC. 101. SHORT TITLE.
This title may be cited as the ‘‘Export Administration
Act of 1996’’.
SEC. 102. FINDINGS.
The Congress makes the following findings:
(1) Export controls are a part of a comprehen-
sive response to national security threats. United
States exports should be restricted only for significant
national security, nonproliferation, and foreign policy
reasons.
(2) Exports of certain commodities and tech-
nology may adversely affect the national security and
foreign policy of the United States by making a sig-
nificant contribution to the military potential of in-
dividual countries or by disseminating the capability
to design, develop, test, produce, stockpile, or use
weapons of mass destruction, missile delivery systems,
and other significant military capabilities. Therefore,
the administration of export controls should empha-
size the control of these exports.
(3) The acquisition of sensitive commodities and
technology by those countries and end users whose ac-
tions or policies run counter to United States na-
tional security or foreign policy interests may en-
hance the military capabilities of those countries, par-
ticularly their ability to design, develop, test, produce,
stockpile, use, and deliver nuclear, chemical, and bio-
logical weapons, missile delivery systems, and other
significant military capabilities. This enhancement
threatens the security of the United States and its al-
lies, and places additional demands on the defense
budget of the United States. Availability to countries
and end users of items that contribute to military ca-
pabilities or the proliferation of weapons of mass de-
struction is a fundamental concern of the United
States and should be eliminated through negotiations
and other appropriate means whenever possible.
(4) With the growing importance of exports to
sustained United States economic growth and vital-
ity, restrictions on exports must be evaluated in terms
of their effects on the United States economy.
(5) Export controls cannot be the sole instrument
of the United States to prevent a country or end user
from developing weapons of mass destruction. For this
reason, export controls should be applied as part of a
comprehensive response to security threats.
(6) The national security of the United States
depends not only on wise foreign policies and a
strong defense, but also a vibrant national economy.
To be truly effective, export controls should be applied
uniformly by all suppliers.
(7) International treaties, such as the Chemical
Weapons Convention, and international agreements
and arrangements intended to control, lessen, or
eliminate weapons of mass destruction should be fully
implemented by, among other things, imposing re-
strictions on imports and exports of designated items,
monitoring, and transmitting reports on, the produc-
tion, processing, consumption, export, and import of
designated items, and complying with verification re-
gimes mandated by such treaties, agreements, and ar-
rangements.
(8) Except in the event the United States is the
sole source of critical supplies, unilateral export con-
trols are generally not truly effective in influencing
the behavior of other governments or impeding access
to controlled items. Unilateral controls alone may im-
pede access to United States sources of supply without
affecting the ability of countries to obtain controlled
items elsewhere. Moreover, unilateral controls gen-
erally permit foreign competitors to serve markets the
United States Government denies to United States
firms and workers, thus impairing the reliability of
United States suppliers in comparison with their for-
eign competitors. At the same time, the need to lead
the international community or overriding national
security or foreign policy interests may justify unilat-
eral controls in specific cases.
(9) The United States recognizes the importance
of comprehensive enforcement measures to maximize
the effectiveness of multilateral controls.
(10) The United States export control system
must not be overly restrictive or bureaucratic, or un-
dermine the competitive position of United States in-
dustry. The export control system must be efficient,
responsive, transparent, and effective.
(11) Export restrictions that negatively affect the
United States industrial base may ultimately weaken
United States military capabilities and lead to de-
pendencies on foreign sources for key components.
(12) Minimization of restrictions on exports of
agricultural commodities and products is of critical
importance to the maintenance of a sound agricul-
tural sector, to a positive contribution to the balance
of payments, to reducing the level of Federal expendi-
tures for agricultural support programs, and to Unit-
ed States cooperation in efforts to eliminate malnutri-
tion and world hunger.
(13) Minimization of restrictions on the export
of information technology products and services is of
critical importance to United States leadership in re-
moving obstacles to the effective development of a su-
perior global information infrastructure and the new
jobs and markets, increased trade and information
flows, improved national security, and new tools for
the improvement of the quality of life for people glob-
ally that will be created.
(14) The United States should play a leading
role in promoting transparency and responsibility
with regard to the transfers of conventional arma-
ments and sensitive dual-use goods and technologies.
SEC. 103. POLICY STATEMENT.
It is the policy of the United States to do the following:
(1) To stem the proliferation of weapons of mass
destruction, and the means to deliver them, and other
significant military capabilities by—
(A) leading international efforts to control
the proliferation of chemical and biological
weapons, nuclear explosive devices, missile deliv-
ery systems, and other significant military capa-
bilities;
(B) controlling involvement of United
States persons in, and contributions by United
States persons to, foreign programs intended to
develop weapons of mass destruction, missiles,
and other significant military capabilities, and
the means to design, test, develop, produce, stock-
pile, or use them; and
(C) implementing international treaties or
other agreements or arrangements concerning
controls on exports of designated items, reports
on the production, processing, consumption, and
exports and imports of such items, and compli-
ance with verification programs.
(2) To restrict the export of items—
(A) that would significantly contribute to
the military potential of countries so as to prove
detrimental to the national security of the Unit-
ed States or its allies; or
(B) where necessary to further significantly
the foreign policy of the United States or to ful-
fill its declared international commitments.
(3) To—
(A) minimize uncertainties in export con-
trol policy; and
(B) encourage trade with all countries with
which the United States has diplomatic or trad-
ing relations, except those countries with which
such trade has been determined by the President
to be against the national interest.
(4) To restrict export trade when necessary to
protect the domestic economy from the excessive drain
of scarce materials and to reduce the serious infla-
tionary impact of foreign demand.
(5) To further increase the reliance of the United
States upon multilateral coordination of controls
through effective control regimes that maintain lists of
controlled items that are truly critical to the control
objectives, strive to increase membership to include all
relevant countries, maintain common criteria and
procedures for licensing, and harmonize member
countries’ licensing practices. It is the policy of the
United States that multilateral controls are the best
means of achieving the control objectives of the United
States.
(6) To impose unilateral controls only when it is
necessary to further significantly the national secu-
rity or foreign policy of the United States, and only
after full consideration of the economic impact of the
controls and their effectiveness in achieving their in-
tended objectives.
(7) To make all licensing determinations in a
timely manner so undue delays in the licensing proc-
ess will not cause a United States person to lose an
export sale.
(8) To use export controls to deter and punish
acts of international terrorism and to encourage other
countries to take immediate steps to prevent the use
of their territories or resources to aid, encourage, or
give sanctuary to those persons involved in directing,
supporting, or participating in acts of international
terrorism. To this end, consistent with the policies of
this section and the provisions of this title, the United
States should, by restricting exports to countries that
have violated international norms of behavior by re-
peatedly supporting acts of international terrorism,
distance itself from those countries.
(9)(A) To counteract restrictive trade practices
or boycotts fostered or imposed by foreign countries
against other countries friendly to the United States
or against any United States person.
(B) To encourage and, in specified cases, require
United States persons engaged in the export of com-
modities, technology, and other information to refuse
to take actions, including furnishing information or
entering into or implementing agreements, which
have the effect of furthering or supporting the restric-
tive trade practices or boycotts fostered or imposed by
any foreign country against a country friendly to the
United States or against any United States person.
(10) To streamline export control functions and
increase administrative accountability, and thereby
better serve the exporting public by reducing and
eliminating overlapping, conflicting, and inconsistent
regulatory burdens.
(11) To minimize restrictions on the export of
agricultural commodities and products.
(12) To minimize restrictions on the export of
information technology products and services as part
of a flexible regulatory environment that can keep
pace with the rapid technological changes necessary to
realize the full economic, societal, and national secu-
rity benefits of United States leadership in the devel-
opment of a superior global information infrastruc-
ture.
(13) To cooperate with other countries to pro-
mote greater transparency and responsibility with re-
gard to the transfers of armaments and sensitive
goods and technologies, both for the purpose of devel-
oping common understandings of the risks to inter-
national peace and regional security associated with
the transfers of such items and to coordinate national
control policies to combat those risks.
(14) To enhance the national security and non-
proliferation interests of the United States. To this
end and consistent with the other policies of this sec-
tion and the provisions of this title, the United States
will use export controls when necessary to ensure that
access to weapons of mass destruction, missile deliv-
ery systems, and other significant military capabili-
ties is restricted. While the multilateral nonprolifera-
tion regimes will be the primary instruments through
which the United States will pursue its nonprolifera-
tion goals, it may also, consistent with the policies of
this section and the provisions of this title, take uni-
lateral action.
(15) To promote international peace, stability,
and respect for fundamental human rights. The Unit-
ed States may establish controls on exports that con-
tribute to the military capabilities of countries that
threaten international peace or stability or to coun-
tries that abuse the fundamental rights of their citi-
zens, or to promote other important foreign policy ob-
jectives of the United States, consistent with the poli-
cies of this section and the provisions of this title.
SEC. 104. GENERAL PROVISIONS.
(a) TYPES OF LICENSES.—Under such conditions as
the Secretary may impose, consistent with the provisions
of this title, the Secretary may require any type of license
appropriate to the effective and efficient implementation of
this title, including the following:
(1) SPECIFIC EXPORTS.—A license authorizing a
specific export.
(2) MULTIPLE EXPORTS.—Licenses authorizing
multiple exports, issued pursuant to an application
by the exporter, in lieu of a license for each such ex-
port. Licenses under this paragraph shall be designed
to encourage and acknowledge exporters’ internal con-
trol programs for ensuring compliance with the terms
of the license.
(b) UNITED STATES COMMODITY CONTROL INDEX.—
(1) IN GENERAL.—The Secretary shall establish
and maintain, in consultation with the Secretary of
Defense and the heads of other appropriate depart-
ments and agencies, a United States Commodity Con-
trol Index specifying the license requirements under
this title that are applicable to the items on the list.
(2) CONTENTS.—The control index shall—
(A) consist of a multilateral control list of
items on which export controls are imposed
under section 105, an emergency control list of
items on which export controls are imposed
under section 106, and a short supply control
list of commodities on which export controls are
imposed under section 107;
(B) include, as part of the multilateral and
emergency control lists, those items identified
pursuant to section 111(a);
(C) for each item on the control index,
specify with particularity the performance
(where applicable) and other identifying charac-
teristics of the item and provide a rationale for
why the item is on the control list;
(D) identify countries, and, as appropriate,
end uses or end users, including specific projects
and end users of concern, cross-referenced with
the list of commodities and technology on which
export controls are imposed; and
(E) be sufficiently specific and clear as to
guide exporters and licensing officers in deter-
minations of licensing requirements under this
title.
(c) DENIED
OR DEBARRED PARTIES, SANCTIONED
PARTIES, BLOCKED PERSONS, SPECIALLY DESIGNATED
NATIONALS, AND OTHER PARTIES PRESENTING UNACCEPT-
ABLE RISKS OF DIVERSION.—
(1) DENIED
OR
DEBARRED
PARTIES, SANC-
TIONED PARTIES, BLOCKED PERSONS, AND SPECIALLY
DESIGNATED NATIONALS.—The President shall ensure
that an official list is published semiannually in the
Federal Register of all parties denied or debarred
from export privileges under this title or under the
Arms Export Control Act, all parties sanctioned for
prohibited proliferation activity under this title or
other statutes, and all blocked persons and specially
designated nationals. For purposes of this paragraph,
a ‘‘blocked person’’ or ‘‘specially designated national’’
is a person or entity so designated by the President
or the Secretary of the Treasury under the Trading
With the Enemy Act, or the International Emergency
Economic Powers Act, with whom transactions are
prohibited on account of the relationship of that per-
son or entity with a country, organization, or activ-
ity against which sanctions are imposed under either
such Act. Promptly after any person is designated a
‘‘blocked person’’ or ‘‘specially designated national’’,
the Secretary of the Treasury shall publish such des-
ignation in the Federal Register.
(2) OTHER PARTIES.—The Secretary shall main-
tain a list of parties for whom licenses under this title
will be presumptively denied.
(d) DELEGATION OF AUTHORITY.—Subject to the pro-
visions of this title, the President may delegate the power,
authority, and discretion conferred upon the President by
this title to such departments, agencies, and officials of the
Government as the President considers appropriate, except
that no authority under this title may be delegated to, or
exercised by, any official of any department or agency the
head of which is not appointed by the President, by and
with the advice and consent of the Senate. The President
may not delegate or transfer his power, authority, or discre-
tion to overrule or modify any recommendation or decision
made by the Secretary, the Secretary of Defense, or the Sec-
retary of State under this title and may not delegate the
authority under section 106(a)(4).
(e) NOTIFICATION
OF
THE PUBLIC; CONSULTATION
WITH BUSINESS.—The Secretary shall keep the public fully
apprised of changes in export control policy and procedures
instituted in conformity with this title with a view to en-
couraging trade. The Secretary shall consult regularly with
representatives of a broad spectrum of enterprises, labor or-
ganizations, and citizens interested in or affected by export
controls, in order to obtain their views on United States
export control policy and the foreign availability of items
subject to controls.
(f) EXPORT ADVISORY COMMITTEES.—
(1) APPOINTMENT.—Upon his or her own initia-
tive or upon the written request of representatives of
a substantial segment of any industry which produces
any items subject to export controls under this title or
under the International Emergency Economic Powers
Act, or being considered for such controls, the Sec-
retary shall appoint export advisory committees with
respect to any such items. Each such committee shall
consist of representatives of United States industry
and Government, including the Department of Com-
merce and other appropriate departments and agen-
cies of the Government. The Secretary shall permit
the widest possible participation by the business com-
munity on the export advisory committees.
(2) FUNCTIONS.—Export advisory committees
appointed under paragraph (1) shall advise and as-
sist the Secretary, and any other department, agency,
or official of the Government carrying out functions
under this title, on actions (including all aspects of
controls imposed or proposed) designed to carry out
the policies of this title concerning the items with re-
spect to which such export advisory committees were
appointed. Such committees, where they have exper-
tise in such matters, shall be consulted on questions
involving—
(A) technical matters,
(B) worldwide availability and actual utili-
zation of production technology,
(C) licensing procedures which affect the
level of export controls applicable to any items,
(D) revisions of the multilateral control list
(as provided in section 105(g)), including pro-
posed revisions of multilateral controls in which
the United States participates,
(E) the issuance of regulations,
(F) the impact and interpretation of exist-
ing regulations,
(G) processes and procedures for review of
licenses and policy,
(H) any other questions relating to actions
designed to carry out this title, and
(I) the operation and conduct of inter-
national business transactions.
Nothing in this subsection shall prevent the United
States Government from consulting, at any time, with
any person representing an industry or the general
public, regardless of whether such person is a member
of an export advisory committee. Members of the pub-
lic shall be given a reasonable opportunity, pursuant
to regulations prescribed by the Secretary, to present
evidence to such committees.
(3) REIMBURSEMENT OF EXPENSES.—Upon the
request of any member of any export advisory com-
mittee appointed under paragraph (1), the Secretary
may, if the Secretary determines it to be appropriate,
reimburse such member for travel, subsistence, and
other necessary expenses incurred by such member in
connection with the duties of such member.
(4) CHAIRPERSON.—Each export advisory com-
mittee appointed under paragraph (1) shall elect a
chairperson, and shall meet at least every 3 months
at the call of the chairperson, unless the chairperson
determines, in consultation with the other members of
the committee, that such a meeting is not necessary
to achieve the purposes of this subsection. Each such
committee shall be terminated after a period of 2
years, unless extended by the Secretary for additional
periods of 2 years each. The Secretary shall consult
with each such committee on such termination or ex-
tension of that committee.
(5) ACCESS TO INFORMATION.—To facilitate the
work of the export advisory committees appointed
under paragraph (1), the Secretary, in conjunction
with other departments and agencies participating in
the administration of this title, shall disclose to each
such committee adequate information, consistent with
national security, pertaining to the reasons for the ex-
port controls which are in effect or contemplated for
the items or policies for which that committee fur-
nishes advice. Information provided by the export ad-
visory committees shall not be subject to disclosure
under section 552 of title 5, United States Code, and
such information shall not be published or disclosed
unless the Secretary determines that the withholding
thereof is contrary to the national interest.
(g) DEVELOPMENT AND REVIEW OF THE CONTROL
INDEX.—
(1) IN GENERAL.—
(A) Consistent with the general guidance of
the Export Control Policy Committee established
in section 114(c), the Secretary of Defense and
the heads of other appropriate departments and
agencies may identify and recommend to the
Secretary—
(i) commodities and technology for in-
clusion on, or deletion from, the multilat-
eral and emergency control lists; and
(ii) the licensing requirements that
should or should not apply to these com-
modities and technology.
(B) The Secretary of Defense shall have pri-
mary responsibility for identifying commodities
and technologies that are critical to the design,
development, test, production, stockpiling, or use
of weapons of mass destruction and other mili-
tary capabilities, including nuclear, biological,
and chemical weapons, and manned and un-
manned vehicles capable of delivering such weap-
ons, in determining recommendations for inclu-
sion of items on the control index.
(C) If the Secretary of Defense, the Sec-
retary of State, or the Secretary of Energy dis-
agrees with the decision of the Secretary regard-
ing the inclusion or deletion, or licensing re-
quirements of, any commodity or technology, the
Secretary of Defense, State, or Energy (as the
case may be) may, within 30 days after the Sec-
retary makes the decision, appeal the Secretary’s
decision to the President in writing, but only on
the basis of the specific provisions of this title. If
the Secretary of Defense, the Secretary of State,
or the Secretary of Energy fails to appeal a deci-
sion of the Secretary in accordance with the pre-
ceding sentence, he or she shall be deemed to have
no objection to the decision. The President shall
resolve a disagreement under this subsection not
later than 30 days after the appeal is made
under this paragraph.
(2) NEGOTIATIONS.—The Secretary of State, in
consultation with appropriate departments and agen-
cies, shall be responsible for conducting negotiations
with other countries regarding multilateral arrange-
ments for restricting the export of items to carry out
the policies of this title. All appropriate departments
and agencies shall develop initial technical param-
eters and product definitions in connection with the
development of proposals within the United States
Government to be made to multilateral regimes, in
consultation with the export advisory committees as
provided in paragraph (3).
(3) CONSULTATIONS
WITH
EXPORT
ADVISORY
COMMITTEES.—The Secretary shall consult with the
appropriate export advisory committee appointed
under this section with respect to changes in the con-
trol index, and such export advisory committee may
submit recommendations to the Secretary with respect
to such changes. The Secretary shall consider the rec-
ommendations of the export advisory committee and
shall inform the committee of the disposition of its
recommendations. The Secretary shall also seek com-
ments and recommendations from the public in con-
nection with changes in the control index. To the
maximum extent practicable and consistent with the
conduct of international negotiations, such comments
and recommendations should be taken into consider-
ation in the development of United States Govern-
ment proposals and positions to be taken in multilat-
eral regimes.
(h) RIGHT OF EXPORT.—No authority or permission
to export may be required under this title, or under regula-
tions issued under this title, except to carry out the policies
set forth in section 103.
(i) INTERNATIONAL
OBLIGATIONS
UNDER
TREA-
TIES.—Notwithstanding any other provision of this title
containing limitations on authority to control exports, the
Secretary, in consultation with the Secretary of State, may
impose controls on exports to a particular country or coun-
tries in order to fulfill obligations of the United States
under resolutions of the United Nations and under treaties
to which the United States is a party. The Secretary may
regulate domestic and foreign conduct consistent with the
policies of such United Nations resolutions, treaties, and
other international agreements. Such authority shall in-
clude, but not be limited to, authority to prohibit activity
such as financing, contracting, providing services, or em-
ployment, to deny access to items in the United States and
abroad, to conduct audits of records and inspections of fa-
cilities, to compel reports, and to curtail travel.
(j) FEES.—No fee may be charged in connection with
the submission or processing of an export license applica-
tion under this title.
SEC. 105. MULTILATERAL CONTROLS.
(a) AUTHORITY.—
(1) IN GENERAL.—In order to carry out the poli-
cies set forth in paragraphs (1), (2), (5), (13), (14),
and (15) of section 103, the President may, in accord-
ance with this section, prohibit, curtail, or require the
provision of information regarding, the export of any
commodities, technology, or other information subject
to the jurisdiction of the United States, or exported
by any person subject to the jurisdiction of the United
States, in order to implement multilateral export con-
trol regimes. The authority under this paragraph
shall include, but not be limited to, the authority to
regulate domestic and foreign conduct, to prohibit ac-
tivity such as financing, contracting, providing serv-
ices, or employment, to deny access to items in the
United States and abroad, to conduct audits of
records and inspections of facilities, and to compel re-
ports. The authority granted by this subsection may
not be exercised to impose unilateral controls.
(2) EXERCISE
OF
AUTHORITY.—The authority
granted by this subsection shall be implemented by
the Secretary, in consultation with appropriate de-
partments and agencies.
(3) CONSISTENCY WITH EXPORT CONTROL RE-
GIMES.—Any provision of this title that provides that
no authority or permission to export may be required
under this title shall not apply to the extent that such
a provision is inconsistent with an international
commitment of the United States under a multilateral
export control regime.
(b) MULTILATERAL CONTROL LIST.—The Secretary
shall, in consultation with appropriate departments and
agencies as provided in section 104(g), designate as part
of the control index, a multilateral control list, comprised
of the items on which export controls are in effect under
this section.
(c) EXPORT LICENSING POLICIES.—The President
shall ensure that steps are taken to increase the degree to
which the licensing requirements of other export regime
members are harmonized with the licensing requirements
maintained by the Secretary in controlling items under this
section.
(d) MULTILATERAL CONTROL REGIMES.—
(1) POLICY.—In order to carry out the policies
set forth in section 103, the Secretary of State, in con-
sultation with appropriate departments and agencies,
should seek multilateral arrangements that are in-
tended to secure effective achievement of these policies
and, in so doing, also establish fairer and more pre-
dictable competitive opportunities for United States
exporters.
(2) STANDARDS FOR NATIONAL SYSTEMS.—In the
establishment and maintenance of multilateral re-
gimes, the Secretary of State, in consultation with
appropriate departments and agencies, shall take
steps to attain the cooperation of members of the re-
gimes in the effective implementation of export control
systems. Such systems should contain the following
elements:
(A) National laws providing enforcement
authorities, civil and criminal penalties, and
statutes of limitations sufficient to deter poten-
tial violations and punish violators.
(B) A program to evaluate export license
applications that includes sufficient technical ex-
pertise to assess the licensing status of exports
and ensure the reliability of end users.
(C) An enforcement mechanism that pro-
vides authority for trained enforcement officers
to investigate and prevent illegal exports.
(D) A system of export control documenta-
tion to verify the movement of items.
(E) Procedures for the coordination and ex-
change of information concerning licensing, end
users, and enforcement.
(F) Adequate national resources devoted to
carrying out subparagraphs (A) through (E).
(3) STANDARDS FOR MULTILATERAL REGIMES.—
In the establishment and maintenance of multilateral
regimes, the Secretary of State, in consultation with
appropriate departments and agencies, should seek,
consistent with the policies set forth in section 103,
the following features for the multilateral control re-
gimes in which the United States participates:
(A) FULL MEMBERSHIP.—Achieve member-
ship of all supplier countries whose policies and
activities are consistent with the objectives and
membership criteria of the multilateral regime.
(B) EFFECTIVE ENFORCEMENT AND COMPLI-
ANCE.—Promote enforcement and compliance
with the rules and guidelines of the members of
the regime through maintenance of an effective
control list.
(C) 
PUBLIC
UNDERSTANDING.—Enhance
public understanding of each regime’s purpose
and procedures.
(D) EFFECTIVE
IMPLEMENTATION
PROCE-
DURES.—Achieve procedures for effective imple-
mentation of the rules and guidelines of the re-
gime through uniform and consistent interpreta-
tions of export controls agreed to by the govern-
ments participating in the regime.
(E) ENHANCED COOPERATION AMONG RE-
GIME MEMBERS.—Reach agreement to enhance
cooperation among members of the regime in ob-
taining the agreement of governments outside the
regime to restrict the export of items controlled
by the regime, to establish an ongoing mecha-
nism in the regime to coordinate planning and
implementation of export control measures relat-
ed to such agreements, and to remove items from
the list of items controlled by the regime if the
control of such items no longer serves the objec-
tives of the members of the regime.
(F) PERIODIC
HIGH-LEVEL
MEETINGS.—
Conduct periodic meetings of high-level rep-
resentatives of participating governments for the
purpose of coordinating export control policies
and issuing policy guidance to members of the
regime.
(G) 
COMMON
LIST
OF
CONTROLLED
ITEMS.—Reach agreement on a common list of
items controlled by the regime.
(H) TREATMENT OF CERTAIN COUNTRIES.—
Prevent the export or diversion of the most sen-
sitive items to countries whose activities are
threatening to the national security of the United
States or its allies.
(I) DISCLOSURE OF NONPROPRIETARY IN-
FORMATION.—Promote transparency and timely
disclosure of nonproprietary information with
respect to the transfers of sensitive dual-use com-
modities and technologies, when appropriate, for
the purpose of developing common understand-
ings of the risks to international peace and re-
gional security associated with such transfers
and to coordinate national control policies to
combat those risks.
(e) INCENTIVES FOR PARTNERSHIP.—Consistent with
the policies of this title and consistent with the objectives,
rules, and guidelines of the individual regime—
(1) the Secretary, in consultation with appro-
priate departments and agencies, may provide for ex-
ports free of license requirements to and among mem-
bers of a multilateral regime for items subject to con-
trols under such a multilateral regime; and
(2) the Secretary, in consultation with appro-
priate departments and agencies, may adjust licens-
ing policies with respect to a particular country or
entity for access to items controlled under this title to
the extent of the adherence of that country or entity
to the export control policies of this section.
Actions by the Secretary under paragraphs (1) and (2)
shall be consistent with the requirements of section
111(a)(1)(C).
(f) TRANSPARENCY OF MULTILATERAL CONTROL RE-
GIMES.—
(1) PUBLICATION OF INFORMATION ON EACH EX-
ISTING REGIME.—Within 6 months after the date of
the enactment of this Act, the Secretary shall, to the
extent doing so is not inconsistent with arrangements
in multilateral export control regimes, publish in the
Federal Register the following information with re-
spect to each multilateral control regime existing on
the date of the enactment of this Act:
(A) Purposes of the control regime.
(B) Members of the regime.
(C) Licensing policy.
(D) Items subject to the controls under the
regime, together with all public notes, under-
standings, and other aspects of the agreement of
the regime, and all changes thereto.
(E) Any countries, end uses, or end users
that are subject to the controls.
(F) Rules of interpretation.
(G) Major policy actions.
(H) The rules and procedures of the regime
for establishing and modifying any matter de-
scribed in subparagraphs (A) through (G) and
for reviewing export license applications.
(2) NEW REGIMES.—Within 2 months after the
United States joins or organizes a new export control
regime, the Secretary shall, to the extent doing so is
not inconsistent with arrangements in the regime,
publish the information described in subparagraphs
(A) through (H) of paragraph (1) with respect to that
regime.
(3) PUBLICATION
OF
CHANGES.—Within 2
months after the applicable regime adopts any
changes in the information published under this sub-
section, the Secretary shall, to the extent doing so is
not inconsistent with arrangements in the regime,
publish such changes in the Federal Register.
(g) REVIEW OF CONTROLLED ITEMS.—
(1) IN GENERAL.—Under the policy guidance of
the Export Control Policy Committee established in
section 114(c), and consistent with the procedures in
section 104(g), the Secretary shall review all items on
the multilateral control list maintained under sub-
section (b) at least every 2 years, except that the Sec-
retary shall review annually whether the policy set
forth in section 103(12) is being achieved. At the con-
clusion of each review, the Secretary shall decide
whether to maintain or remove items from the multi-
lateral control list, maintain, change, or eliminate the
specifications, performance thresholds, or licensing re-
quirements on items on the list, or add items to the
list.
(2) CONSIDERATIONS.—In conducting the review,
the Secretary shall—
(A) consult with the Secretary of Defense
concerning militarily critical technologies;
(B) consult with the appropriate export ad-
visory committees appointed under section 104(f)
and consider recommendations of such commit-
tees with respect to proposed changes in the mul-
tilateral control list;
(C) consider whether controlled items or
their equivalent are so widely available in the
United States (in terms of quantity, cost, and
means of sale and delivery) that the requirement
for a license is ineffective in achieving the pur-
pose of the control;
(D) consider whether the differences between
the export controls of the United States and that
of governments of foreign suppliers or competing
items effectively has placed or will place the
United States exporter at a significant commer-
cial disadvantage with respect to its competitors
abroad, and has placed, or will place, employ-
ment in the United States in jeopardy;
(E) consider the results of determinations
made under section 114(k); and
(F) consider comments received pursuant to
the notice of review provided under paragraph
(3)(A).
(3) PROCEDURES.—
(A) NOTICE OF REVIEW.—Before beginning
each review under this subsection, the Secretary
shall publish a notice of that review in the Fed-
eral Register and shall provide a 30-day period
for comments and submission of data, including
by exporters and other interested parties.
(B) PROPOSALS TO EXPORT CONTROL RE-
GIMES.—If a revision to the multilateral control
list or to a licensing requirement under this
paragraph is inconsistent with the control lists,
guidelines, or the licensing requirements of, an
export control regime, the Secretary of State
shall propose such revision to that regime. Such
revision shall become effective only to the extent
such revision is agreed to by the export control
regime.
(C) PUBLICATION OF REVISIONS.—The Sec-
retary shall publish in the Federal Register any
revisions in the list, with an explanation of the
reasons for the revisions.
SEC. 106. EMERGENCY CONTROLS.
(a) AUTHORITY.—
(1) IN GENERAL.—In order to carry out the pol-
icy set forth in paragraphs (1), (2), (6), (8), (14), and
(15) of section 103, the President may, in accordance
with the provisions of this section, unilaterally pro-
hibit, curtail, or require the provision of information
regarding the export of any commodity, technology, or
other information subject to the jurisdiction of the
United States or exported by any person subject to the
jurisdiction of the United States. The authority under
this paragraph shall include, but not be limited to,
the authority to regulate domestic and foreign con-
duct, to prohibit activity such as financing, contract-
ing, providing services, or employment, to deny access
to items in the United States and abroad, to conduct
audits of records and inspections of facilities, and to
compel reports.
(2) EXERCISE
OF
AUTHORITY.—The authority
contained in this section shall be exercised by the Sec-
retary, in consultation with the Secretary of State,
the Secretary of Defense, and such other departments
and agencies as the President considers appropriate,
and consistent with the procedures in section 104(g).
(3) EXPIRATION OF CONTROLS.—
(A) IN
GENERAL.—Any controls imposed
under this section shall expire 12 months after
they are imposed, unless they are terminated
earlier by the President or unless they are ex-
tended under this section, except that such con-
trols may be adopted as multilateral controls
under section 105 or included in an embargo
that is imposed by the President under the Inter-
national Emergency Economic Powers Act, the
Trading with the Enemy Act, or other provision
of law other than this title. Any extension or
subsequent extension of the controls under this
section shall be for a period of not more than
1 year each. The controls shall expire at the end
of each such extension unless they are terminated
earlier by the President or unless they are fur-
ther extended under this section, except that such
controls may be adopted as multilateral controls
under section 105 or included in an embargo de-
scribed in the first sentence of this subparagraph.
(B) EXCEPTION FOR MULTILATERAL AGREE-
MENTS.—Subparagraph (A) shall not apply to
controls imposed by the President in order to ful-
fill obligations of the United States under resolu-
tions of the United Nations or under treaties to
which the United States is a party. If such a res-
olution or treaty ceases to be in effect, controls
imposed by the President pursuant to such reso-
lution or treaty shall immediately cease to be in
effect.
(4) CRITERIA.—Controls may be imposed, ex-
panded, or extended under this section only if the
President determines that—
(A) the controls are necessary to further sig-
nificantly the nonproliferation, national secu-
rity, or foreign policies of the United States pro-
vided in section 103, the objective of the controls
is in the overall national interest of the United
States, and reasonable alternative means to the
controls are not available;
(B) the controls are likely to make substan-
tial progress toward achieving the intended pur-
pose of—
(i) changing, modifying, or constrain-
ing the undesirable conduct or policies of
the country to which the controls apply;
(ii) denying access by the country to
controlled items from all sources;
(iii) establishing multilateral coopera-
tion to deny the country access to controlled
items from all sources; or
(iv) denying exports or assistance that
significantly contributes to the proliferation
of weapons of mass destruction or other im-
portant military capabilities, terrorism, or
human rights abuses;
(C) the proposed controls are compatible
with the foreign policy objectives of the United
States and with overall United States policy to-
ward the country to which the controls apply;
(D) the reaction of other countries to the
imposition, expansion, or extension of such ex-
port controls by the United States is not likely
to render the controls ineffective in achieving the
intended purpose or to be counter-productive to
United States policy interests;
(E) the effect of the proposed controls on the
export performance of the United States, the
competitive position of the United States as a
supplier of items, or on the economic well-being
of individual United States companies and their
employees and communities does not exceed the
benefit to the United States foreign policy, non-
proliferation, or national security interests; and
(F) the United States has the ability to en-
force the proposed controls effectively.
(b) CONSULTATION WITH INDUSTRY.—The Secretary
shall consult with and seek advice from affected United
States industries and export advisory committees appointed
under section 104(f) before the imposition, expansion, or ex-
tension of any export control under this section.
(c) CONSULTATION WITH OTHER COUNTRIES.—When
expanding or extending export controls under this section
(unless such action is taken under subsection (a)(3)(B)), the
Secretary of State, in consultation with appropriate de-
partments and agencies, shall, at the earliest appropriate
opportunity, consult with the countries with which the
United States maintains export controls cooperatively, and
with other countries, as appropriate, to advise them of the
reasons for the action and to urge them to adopt similar
controls.
(d) CONSULTATIONS WITH THE CONGRESS.—
(1) CONSULTATIONS.—The Secretary may im-
pose, expand, or extend export controls under this sec-
tion only after consultation with the Congress, includ-
ing the Committee on International Relations of the
House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate.
(2) REPORTS.—The Secretary may not impose
or expand controls under subsection (a) until the Sec-
retary has submitted to the Congress a report—
(A) addressing each of the criteria set forth
in subsection (a)(4);
(B) specifying the purpose of the controls;
(C) describing the nature, the subjects, and
the results of, or plans for, the consultation with
industry under subsection (b) and with other
countries under subsection (c);
(D) specifying the nature and results of any
alternative means attempted to achieve the objec-
tives of the controls, or the reasons for imposing
or expanding the controls without attempting
any such alternative means; and
(E) describing the availability from other
countries of items comparable to the items sub-
ject to the controls, and describing the nature
and results of the efforts made to secure the co-
operation of foreign governments in controlling
the foreign availability of such comparable items.
Such report shall also indicate how such controls will
further significantly the policies of the United States
as set forth in section 103 or will further its declared
international obligations.
(e) SEEKING MULTILATERAL SUPPORT FOR UNILAT-
ERAL CONTROLS.—The Secretary of State, in consultation
with appropriate departments and agencies, shall have a
continuing duty to seek support for controls imposed under
this section by other countries and by effective multilateral
control regimes.
(f) PROCEDURES AND LIMITATIONS ON EMERGENCY
CONTROLS.—
(1) CESSATION OF EMERGENCY CONTROLS.—
(A) IN GENERAL.—Controls imposed under
this section on commodities, technology, or other
information shall cease to be in effect imme-
diately upon—
(i) the imposition of similarly restric-
tive controls under section 105 on the same
commodities, technology, or information to
the country or end user, or for the end use,
with respect to which the controls were im-
posed under this section; or
(ii) the imposition of an embargo,
under the International Emergency Eco-
nomic Powers Act, the Trading with the
Enemy Act, or other provision of law, on
exports to, and imports from the country
with respect to which the controls were im-
posed under this section.
(B) CONVERSION TO MULTILATERAL AGREE-
MENTS.—If the President imposes controls on
commodities, technology, or other information to
a country or end user, or for an end use, under
this section in order to fulfill obligations of the
United States under resolutions of the United
Nations or under a treaty to which the United
States is a party, any equivalent controls im-
posed prior thereto under this section on the
same commodities, technology, or information to
the same country or end user, or for the same
end use, shall immediately cease to be in effect.
(2) LIMITATIONS
ON
REIMPOSITION.—Controls
which have ceased to be in effect under subsection
(a)(3), and which have not been extended under sub-
section (g), may not be reimposed by the President
under subsection (a) for a period of 6 months begin-
ning on the date on which the original controls ex-
pire, unless the President determines that reimposi-
tion of controls is warranted due to significant
changes in circumstances since the expiration of the
controls.
(g) EXTENSION OF EMERGENCY CONTROLS.—
(1) REPORT.—If the President decides to extend
controls imposed under subsection (a), which are due
to expire under subsection (a)(3), the President shall,
not later than 30 calendar days before the expiration
of such controls, transmit to the Congress a report on
the proposed extension, setting forth the reasons for
the proposed extension in detail and specifying the
period of time, which may not exceed 1 year, for
which the controls are proposed to be extended. In
particular, such report shall—
(A) contain determinations by the Presi-
dent—
(i) that the controls are likely to con-
tinue to make substantial progress toward
achieving the intended purpose of—
(I) changing, modifying, or con-
straining the undesirable conduct or
policies of the country to which the
controls apply;
(II) denying access by the country
to controlled items from all sources;
(III) establishing multilateral co-
operation to deny the country access to
controlled items from all sources; or
(IV) denying exports or assistance
that significantly contributes to the
proliferation of weapons of mass de-
struction or other important military
capabilities, 
terrorism, 
or 
human
rights abuses;
(ii) that the impact of the controls has
been compatible with the foreign policy ob-
jectives of the United States and with over-
all United States policy toward the con-
trolled country;
(iii) that the reaction of other countries
to the imposition or expansion of the con-
trols by the United States has not rendered
the controls ineffective in achieving the in-
tended purpose and have not been counter-
productive to United States policy interests;
(iv) that the effect of the controls on the
export performance of the United States, the
competitive position of the United States as
a supplier of items, and the economic well-
being of individual United States compa-
nies and their employees and communities
has not exceeded the benefit to the United
States foreign policy, nonproliferation, or
national security interests; and
(v) that the United States has enforced
the controls effectively.
(2) FURTHER
EXTENSIONS
OF
CONTROLS.—If,
upon the expiration of the controls extended under
this subsection, the President determines that a fur-
ther extension of emergency controls for an additional
period of time of not more than 1 year is necessary,
paragraph (1) shall apply to such further extension.
(h) EFFECT ON OTHER AUTHORITY.—
(1) EMBARGO AUTHORITY.—Nothing in this sec-
tion shall be construed to limit the authority of the
President to impose an embargo on exports to, and
imports from, a specific country under the Inter-
national Emergency Economic Powers Act, the Trad-
ing with the Enemy Act, or other provision of law
(other than this title). In any case in which the Presi-
dent exercises any such authority to impose an em-
bargo, the requirements of this section shall not apply
for so long as such embargo is in effect.
(2) EFFECT
ON
EXISTING
EMBARGOES.—(A)
Nothing in this section affects the authorities con-
ferred upon the President by section 5(b) of the Trad-
ing with the Enemy Act, which were being exercised
with respect to a country on July 1, 1977, as a result
of a national emergency declared by the President be-
fore that date, and are being exercised on the date of
the enactment of this Act.
(B) Nothing in this section affects the authorities
conferred upon the President by the International
Economic Powers Act or other provision of law (other
than the Export Administration Act of 1979), which
were being exercised with respect to a country before
the date of the enactment of this Act as a result of
a national emergency declared by the President before
that date, and are being exercised with respect to such
country on such date of enactment.
(i) COUNTRIES SUPPORTING INTERNATIONAL TERROR-
ISM.—
(1) PROHIBITION ON EXPORTS.—(A) No export
described in subparagraph (B) may be made to any
country the government of which the Secretary of
State has determined has repeatedly provided support
for acts of international terrorism.
(B) The exports referred to in subparagraph (A)
are—
(i) of any commodity or technology the ex-
port of which is controlled under this title pursu-
ant to the Wassenaar Arrangement, the Missile
Technology Control Regime, or the Australia
Group, or controlled under this title pursuant to
section 309(c) of the Nuclear Non-Proliferation
Act of 1978,
(ii) of any other commodity or technology
the export of which is controlled under this title
pursuant to multilateral export control regimes
in which the United States participates, and
(iii) of any commodity or technology which
could make a significant contribution to the
military potential of a country described in sub-
paragraph (A), including its military logistics
capability, or could enhance the ability of such
country to support acts of international terror-
ism,
other than food, medicine, or medical supplies that
the President determines will be used only for human-
itarian purposes. An individual validated license
shall be required for the export under this subpara-
graph of any such food, medicine, or medical sup-
plies.
(C) Subsections (a)(3) and (b) shall not apply to
exports prohibited or restricted under this subsection.
(D)(i) The Secretary shall maintain a list of
commodities and technology described in subpara-
graph (B)(iii). The Secretary shall review the list of
items on that list at least annually. At the conclusion
of the review, the Secretary shall determine whether
to remove items from the list, change the specifica-
tions of items on the list, or add items to the list, in
order to ensure that the items on the list meet the re-
quirements of subparagraph (B)(iii).
(ii) The procedures set forth in subparagraphs
(A) and (C) of section 105(g)(3) shall apply to re-
views under clause (i) of the list of items described in
subparagraph (B)(iii) to the same extent as such sec-
tion applies to reviews of the control list under section
105(g).
(2) NOTIFICATION OF CONGRESS OF LICENSES
ISSUED.—The Secretary and the Secretary of State
shall notify the Speaker of the House of Representa-
tives and the Committee on Banking, Housing, and
Urban Affairs and the Committee on Foreign Rela-
tions of the Senate at least 30 days before issuing any
license under this title for exports to a country the
government of which the Secretary of State has deter-
mined has repeatedly provided support for acts of
international terrorism.
(3) PUBLICATION
OF
DETERMINATIONS.—Each
determination of the Secretary of State under para-
graph (1)(A) shall be published in the Federal Reg-
ister.
(4) RESCISSION OF DETERMINATIONS.—A deter-
mination made by the Secretary of State under para-
graph (1)(A) may not be rescinded unless the Presi-
dent submits to the Speaker of the House of Rep-
resentatives and the chairman of the Committee on
Banking, Housing, and Urban Affairs and the chair-
man of the Committee on Foreign Relations of the
Senate—
(A) before the proposed rescission would
take effect, a report certifying that—
(i) there has been a fundamental
change in the leadership and policies of the
government of the country concerned;
(ii) that government is not supporting
acts of international terrorism; and
(iii) that government has provided as-
surances that it will not support acts of
international terrorism in the future; or
(B) at least 45 days before the proposed re-
scission would take effect, a report justifying the
rescission and certifying that—
(i) the government concerned has not
provided any support for international ter-
rorism during the preceding 6-month pe-
riod; and
(ii) the government concerned has pro-
vided assurances that it will not support
acts of international terrorism in the future.
(5) WAIVER OF PROHIBITIONS.—The President
may waive the prohibitions contained in paragraph
(1)(A) with respect to a specific transaction if—
(A) the President determines that the trans-
action is essential to the national security inter-
ests of the United States; and
(B) not less than 30 days prior to the pro-
posed transaction, the President—
(i) consults with the Committee on
International Relations of the House of
Representatives and the Committee on
Banking, Housing, and Urban Affairs of
the Senate regarding the proposed trans-
action; and
(ii) submits to the Speaker of the
House of Representatives and the chairman
of the Committee on Banking, Housing, and
Urban Affairs of the Senate a report con-
taining—
(I) the name of any country in-
volved in the proposed transaction, the
identity of any recipient of the items
to be provided pursuant to the pro-
posed transaction, and the anticipated
use of those items;
(II) a description of the items in-
volved in the proposed transaction (in-
cluding their market value) and the ac-
tual sale price at each step in the
transaction;
(III) the reasons why the proposed
transaction is essential to the national
security interests of the United States
and the justification for the proposed
transaction;
(IV) the date on which the pro-
posed transaction is expected to occur;
and
(V) the name of any foreign gov-
ernments involved in the proposed
transaction.
To the extent possible, the information specified in
clause (ii) of subparagraph (B) shall be provided in
unclassified form.
(6) MULTILATERAL REGIMES.—The Secretary of
State, in consultation with appropriate departments
and agencies, shall seek support by other countries
and by effective multilateral control regimes of con-
trols imposed by this subsection.
(7) EFFECT ON OTHER LAWS.—The provisions of
this subsection do not affect any other provision of
law to the extent such other provision imposes greater
restrictions on exports to any country the government
of which the Secretary of State has determined has re-
peatedly provided support for acts of international
terrorism than are imposed under this subsection.
(j) CRIME CONTROL INSTRUMENTS.—
(1) LICENSE REQUIRED.—Crime control and de-
tection instruments and equipment shall be approved
for export by the Secretary only pursuant to an ex-
port license. Paragraphs (3)(A) and (4) of subsection
(a) shall not apply to the export controls imposed by
this subsection.
(2) CONCURRENCE OF SECRETARY OF STATE.—
(A) ITEMS ON CONTROL INDEX.—Any deter-
mination of the Secretary of what commodities
or technology shall be included on the control
index as a result of the export restrictions im-
posed by this subsection shall be made with the
concurrence of the Secretary of State.
(B) ACTION
ON
LICENSE
APPLICATION.—
Any determination of the Secretary to approve
or deny an export license application to export
crime control or detection instruments or equip-
ment shall be made with the concurrence of the
Secretary of State.
(3) DISPUTE RESOLUTION.—If the Secretary of
State does not agree with the Secretary with respect
to any determination under paragraph (2), the Sec-
retary of State shall refer the matter to the President
for resolution.
(4) EXCEPTIONS.—The provisions of this sub-
section shall not apply with respect to exports to
countries which are members of the North Atlantic
Treaty Organization or to Japan, Australia, or New
Zealand, or to such other countries as the President
shall designate consistent with the purposes of this
subsection and section 502B of the Foreign Assistance
Act of 1961.
(k) SPARE PARTS.—At the same time as the President
imposes or expands export controls under this section, the
President shall determine whether such export controls will
apply to replacement parts or parts in commodities subject
to such export controls.
(l) EFFECT ON OTHER LAWS.—None of the prohibi-
tions contained in this section shall apply to any trans-
action subject to the reporting requirements of title V of the
National Security Act of 1947.
SEC. 107. SHORT SUPPLY CONTROLS.
(a) AUTHORITY.—
(1) IN GENERAL.—In order to carry out the pol-
icy set forth in section 103(4), the President may pro-
hibit or curtail the export of any commodities subject
to the jurisdiction of the United States or exported by
any person subject to the jurisdiction of the United
States. In curtailing exports to carry out the policy
set forth in section 103(4), the President shall allocate
a portion of export licenses on the basis of factors
other than a prior history of exportation. Such factors
shall include the extent to which a country engages in
equitable trade practices with respect to United States
commodities and treats the United States equitably in
times of short supply.
(2) PUBLIC
PARTICIPATION.—Upon imposing
quantitative restrictions on exports of any commod-
ities to carry out the policy set forth in section
103(4), the Secretary shall include in a notice pub-
lished in the Federal Register with respect to such re-
strictions an invitation to all interested parties to
submit written comments within 15 days after the
date of publication on the impact of such restrictions
and the method of licensing used to implement them.
(3) LICENSE FEES.—In imposing export controls
under this section, the President’s authority shall in-
clude, but not be limited to, the imposition of export
license fees.
(b) MONITORING.—
(1) IN GENERAL.—In order to carry out the pol-
icy set forth in section 103(4), the Secretary shall
monitor exports, and contracts for exports, of any
commodity when the volume of such exports in rela-
tion to domestic supply contributes, or may contrib-
ute, to an increase in domestic prices or a domestic
shortage, and such price increase or shortage has, or
may have, a serious adverse impact on the economy
or any sector thereof. Any such monitoring shall com-
mence at a time adequate to assure that the monitor-
ing will result in a data base sufficient to enable poli-
cies to be developed, in accordance with section
103(4), to mitigate a short supply situation or serious
inflationary price rise or, if export controls are need-
ed, to permit imposition of such controls in a timely
manner. Information which the Secretary requires to
be furnished in effecting such monitoring shall be con-
fidential, except as provided in paragraph (2).
(2) REPORTS ON MONITORING.—The results of
monitoring under paragraph (1) shall, to the extent
practicable, be aggregated and included in weekly re-
ports setting forth, with respect to each item mon-
itored, actual and anticipated exports, the destination
by country, and the domestic and worldwide price,
supply, and demand. Such reports may be made
monthly if the Secretary determines that there is in-
sufficient information to justify weekly reports.
(3) CONSULTATION
WITH
SECRETARY
OF
EN-
ERGY.—The Secretary shall consult with the Sec-
retary of Energy to determine whether monitoring or
export controls under this section are warranted with
respect to exports of facilities, machinery, or equip-
ment normally and principally used, or intended to
be used, in the production, conversion, or transpor-
tation of fuels and energy (except nuclear energy), in-
cluding, but not limited to—
(A) drilling rigs, platforms, and equipment;
(B) petroleum refineries, and natural gas
processing, liquefaction, and gasification plants;
(C) facilities for production of synthetic
natural gas or synthetic crude oil;
(D) oil and gas pipelines, pumping sta-
tions, and associated equipment; and
(E) vessels for transporting oil, gas, coal,
and other fuels.
(c) PETITIONS FOR MONITORING OR CONTROLS OF
METALLIC MATERIALS.—
(1) IN GENERAL.—(A) Any entity, including a
trade association, firm, or certified or recognized
union or group of workers, that is representative of
an industry or a substantial segment of an industry
that processes metallic materials capable of being re-
cycled may transmit a written petition to the Sec-
retary requesting the monitoring of exports or the im-
position of export controls, or both, with respect to
any such material, in order to carry out the policy
set forth in section 103(4).
(B) Each petition shall be in such form as the
Secretary shall prescribe and shall contain informa-
tion in support of the action requested. The petition
shall include any information reasonably available to
the petitioner indicating that each of the criteria set
forth in paragraph (3)(A) is satisfied.
(2) PUBLICATION OF NOTICE.—Within 15 days
after receipt of any petition described in paragraph
(1), the Secretary shall publish a notice in the Fed-
eral Register. The notice shall—
(A) include the name of the material that is
the subject to the petition;
(B) include the schedule B number of the
material as set forth in the Statistical Classifica-
tion of Domestic and Foreign Commodities Ex-
ported from the United States;
(C) indicate whether the petition is request-
ing that controls or monitoring, or both, be im-
posed with respect to the exportation of such ma-
terial; and
(D) provide that interested persons shall
have a period of 30 days beginning on the date
on which the notice is published to submit to the
Secretary written data, views, or arguments,
with or without opportunity for oral presen-
tation, with respect to the matter involved.
At the request of the petitioner or any other entity de-
scribed in paragraph (1)(A) with respect to the mate-
rial which is the subject of the petition, or at the re-
quest of any entity representative of producers or ex-
porters of such material, the Secretary shall conduct
public hearings with respect to the subject of the peti-
tion, in which case the 30-day period may be ex-
tended to 45 days.
(3) DETERMINATION
OF
MONITORING
OR
CON-
TROLS.—(A) Within 45 days after the end of the 30-
or 45-day period described in paragraph (2), as the
case may be, the Secretary shall determine whether to
impose monitoring or controls, or both, on the export
of the material that is the subject of the petition in
order to carry out the policy set forth in section
103(4). In making such determination, the Secretary
shall determine whether—
(i) there has been a significant increase, in
relation to a specific period of time, in exports
of such material in relation to domestic supply
and demand;
(ii) there has been a significant increase in
domestic price of such material or a domestic
shortage of such material relative to demand;
(iii) exports of such material are as impor-
tant as any other cause of a domestic price in-
crease or shortage relative to demand found
under clause (ii);
(iv) a domestic price increase or shortage
relative to demand found under clause (ii) has
significantly adversely affected or may signifi-
cantly adversely affect the national economy or
any sector thereof, including a domestic indus-
try; and
(v) monitoring or controls, or both, are nec-
essary in order to carry out the policy set forth
in section 103(4).
(B) The Secretary shall publish in the Federal
Register a detailed statement of the reasons for the
Secretary’s determination under subparagraph (A) of
whether to impose monitoring or controls, or both, in-
cluding the findings of fact in support of that deter-
mination.
(4) PUBLICATION OF REGULATIONS.—Within 15
days after making a determination under paragraph
(3) to impose monitoring or controls on the export of
a material, the Secretary shall publish in the Federal
Register proposed regulations with respect to such
monitoring or controls. Within 30 days after the pub-
lication of such proposed regulations, and after con-
sidering any public comments on the proposed regula-
tions, the Secretary shall publish and implement final
regulations with respect to such monitoring or con-
trols.
(5) CONSOLIDATION
OF
PETITIONS.—For pur-
poses of publishing notices in the Federal Register
and scheduling public hearings pursuant to this sub-
section, the Secretary may consolidate petitions, and
responses to such petitions, which involve the same or
related materials.
(6) SUBSEQUENT
PETITIONS
ON
SAME
MATE-
RIAL.—If a petition with respect to a particular ma-
terial or group of materials has been considered in ac-
cordance with all the procedures described in this sub-
section, the Secretary may determine, in the absence
of significantly changed circumstances, that any other
petition with respect to the same material or group
of materials which is filed within 6 months after the
consideration of the prior petition has been completed
does not merit complete consideration under this sub-
section.
(7) PRECEDENCE OF PROCEDURES OVER OTHER
REVIEWS.—The procedures and time limits set forth
in this subsection with respect to a petition filed
under this subsection shall take precedence over any
review undertaken at the initiative of the Secretary
with respect to the same subject as that of the peti-
tion.
(8) TEMPORARY CONTROLS.—The Secretary may
impose monitoring or controls, on a temporary basis,
on the export of a metallic material after a petition
is filed under paragraph (1)(A) with respect to that
material but before the Secretary makes a determina-
tion under paragraph (3) with respect to that mate-
rial only if—
(A) the failure to take such temporary ac-
tions would result in irreparable harm to the en-
tity filing the petition, or to the national econ-
omy or segment thereof, including a domestic in-
dustry, and
(B) the Secretary considers such action to
be necessary to carry out the policy set forth in
section 103(4).
(9) OTHER
AUTHORITY
NOT
AFFECTED.—The
authority under this subsection shall not be construed
to affect the authority of the Secretary under any
other provision of this title, except that if the Sec-
retary determines, on the Secretary’s own initiative,
to impose monitoring or controls, or both, on the ex-
port of metallic materials capable of being recycled,
under the authority of this section, the Secretary shall
publish the reasons for such action in accordance with
paragraphs (3) (A) and (B).
(10) SUBMISSION AND CONSIDERATION OF ADDI-
TIONAL
INFORMATION.—Nothing contained in this
subsection shall be construed to preclude submission
on a confidential basis to the Secretary of informa-
tion relevant to a decision to impose or remove mon-
itoring or controls under the authority of this title, or
to preclude consideration of such information by the
Secretary in reaching decisions required under this
subsection. The provisions of this paragraph shall not
be construed to affect the applicability of section
552(b) of title 5, United States Code.
(d) AGRICULTURAL COMMODITIES.—
(1) APPROVAL OF CONTROLS BY SECRETARY OF
AGRICULTURE.—The authority conferred by this sec-
tion shall not be exercised with respect to any agricul-
tural commodity, including fats and oils, forest prod-
ucts, or animal hides or skins, without the approval
of the Secretary of Agriculture. The Secretary of Agri-
culture shall not approve the exercise of such author-
ity with respect to any such commodity during any
period for which the supply of such commodity is de-
termined by the Secretary of Agriculture to be in ex-
cess of the requirements of the domestic economy, ex-
cept to the extent the President determines that the
controls on such agricultural commodities are also
imposed under section 106. The Secretary of Agri-
culture shall, by exercising the authority which the
Secretary of Agriculture has under other applicable
provisions of law, collect data with respect to export
sales of animal hides and skins.
(2) PROTECTION OF STORED COMMODITIES FROM
FUTURE CONTROLS.—Upon approval of the Secretary,
in consultation with the Secretary of Agriculture, ag-
ricultural commodities purchased by or for use in a
foreign country may remain in the United States for
export at a later date free from any quantitative lim-
itations on export which may be imposed to carry out
the policy set forth in section 103(4) subsequent to
such approval. The Secretary may not grant such ap-
proval unless the Secretary receives adequate assur-
ance and, in conjunction with the Secretary of Agri-
culture, finds—
(A) that such commodities will eventually
be exported,
(B) that neither the sale nor export thereof
will result in an excessive drain of scarce mate-
rial and have a serious domestic inflationary
impact,
(C) that storage of such commodities in the
United States will not unduly limit the space
available for storage of domestically owned com-
modities, and
(D) that the purpose of such storage is to es-
tablish a reserve of such commodities for later
use, not including resale to or use by another
country.
The Secretary may issue such regulations as may be
necessary to carry out this paragraph.
(3) PROCEDURES
FOR
IMPOSING
CONTROLS.—
(A) If the President imposes export controls on any
agricultural commodity under section 106 or this sec-
tion, the President shall immediately transmit a re-
port on such action to the Congress, setting forth the
reasons for the controls in detail and specifying the
period of time, which may not exceed 1 year, that the
controls are proposed to be in effect. If the Congress,
within 60 days after the date of the receipt of the re-
port, adopts a joint resolution pursuant to paragraph
(4) approving the imposition of the export controls,
then such controls shall remain in effect for the period
specified in the report, or until terminated by the
President, whichever occurs first. If the Congress,
within 60 days after the date of its receipt of such re-
port, fails to adopt a joint resolution approving such
controls, then such controls shall cease to be effective
upon the expiration of that 60-day period.
(B) The provisions of subparagraph (A) and
paragraph (4) shall not apply to export controls—
(i) which are extended under this title if the
controls, when imposed, were approved by the
Congress under subparagraph (A) and para-
graph (4); or
(ii) which are imposed with respect to a
country as part of the prohibition or curtailment
of all exports to that country.
(4) EXPEDITED
PROCEDURES.—(A) For pur-
poses of this paragraph, the term ‘‘joint resolution’’
means only a joint resolution the matter after the re-
solving clause of which is as follows: ‘‘That pursuant
to section 107(d)(3) of the Export Administration Act
of 1996, the President may impose export controls as
specified in the report submitted to the Congress on
lll.’’, with the blank space being filled with the
appropriate date.
(B) On the day on which a report is submitted
to the House of Representatives and the Senate under
paragraph (3), a joint resolution with respect to the
export controls specified in such report shall be intro-
duced (by request) in the House by the chairman of
the Committee on International Relations, for the
chairman and the ranking minority member of the
Committee, or by Members of the House designated by
the chairman and ranking minority member; and
shall be introduced (by request) in the Senate by the
majority leader of the Senate, for the majority leader
and the minority leader of the Senate, or by Members
of the Senate designated by the majority leader and
minority leader of the Senate. If either House is not
in session on the day on which such a report is sub-
mitted, the joint resolution shall be introduced in that
House, as provided in the preceding sentence, on the
first day thereafter on which that House is in session.
(C) If the committee of either House to which a
joint resolution has been referred has not reported the
joint resolution at the end of 30 days after its refer-
ral, the committee shall be discharged from further
consideration of the resolution or of any other joint
resolution introduced with respect to the same matter.
(D) A joint resolution under this paragraph
shall be considered in the Senate in accordance with
the provisions of section 601(b)(4) of the Inter-
national Security Assistance and Arms Export Con-
trol Act of 1976. For the purpose of expediting the
consideration and passage of joint resolutions re-
ported or discharged pursuant to the provisions of
this paragraph, it shall be in order for the Committee
on Rules of the House of Representatives to present
for consideration a resolution of the House of Rep-
resentatives providing procedures for the immediate
consideration of a joint resolution under this para-
graph which may be similar, if applicable, to the pro-
cedure set forth in section 601(b)(4) of the Inter-
national Security Assistance and Arms Export Con-
trol Act of 1976.
(E) In the case of a joint resolution described in
subparagraph (A), if, before the passage by one House
of a joint resolution of that House, that House re-
ceives a resolution with respect to the same matter
from the other House, then—
(i) the procedure in that House shall be the
same as if no joint resolution has been received
from the other House; but
(ii) the vote on final passage shall be on the
joint resolution of the other House.
(5) COMPUTATION
OF
TIME
PERIODS.—In the
computation of the period of 60 days referred to in
paragraph (3)(A) and the period of 30 days referred
to in paragraph (4)(C), there shall be excluded the
days on which either House of Congress is not in ses-
sion because of an adjournment of more than 3 days
to a day certain or because of an adjournment of the
Congress sine die.
(e) BARTER AGREEMENTS.—
(1) EXEMPTION
FROM
CONTROLS.—The expor-
tation pursuant to a barter agreement of any com-
modities which may lawfully be exported from the
United States, for any commodities which may law-
fully be imported into the United States, may be ex-
empted, in accordance with paragraph (2), from any
quantitative limitation on exports (other than any re-
porting requirement) imposed to carry out the policy
set forth in section 103(4).
(2) CRITERIA FOR EXEMPTION.—The Secretary
shall grant an exemption under paragraph (1) if the
Secretary finds, after consultation with the appro-
priate department or agency of the United States,
that—
(A) for the period during which the barter
agreement is to be performed—
(i) the average annual quantity of the
commodities to be exported pursuant to the
barter agreement will not be required to sat-
isfy the average amount of such commod-
ities estimated to be required annually by
the domestic economy and will be surplus
thereto; and
(ii) the average annual quantity of the
commodities to be imported will be more
than the average amount of such commod-
ities estimated to be required annually to
supplement domestic production; and
(B) the parties to such barter agreement
have demonstrated adequately that they intend,
and have the capacity, to perform such barter
agreement.
(3) DEFINITION.—For purposes of this sub-
section, the term ‘‘barter agreement’’ means any
agreement which is made for the exchange, without
monetary consideration, of any commodities produced
in the United States for any commodities produced
outside of the United States.
(4) APPLICABILITY.—This subsection shall apply
only with respect to barter agreements entered into
after September 30, 1979.
(f) EFFECT OF CONTROLS ON EXISTING CONTRACTS.—
(1) WESTERN RED CEDAR.—Any export controls
imposed under section 7(i) of the Export Administra-
tion Act of 1979 or this section shall not affect any
contract to harvest unprocessed western red cedar
from State lands which was entered into before Octo-
ber 1, 1979, and the performance of which would
make the red cedar available for export.
(2) OTHER CONTROLS.—Any export controls im-
posed under this section on any agricultural commod-
ity (including fats, oils, forest products, and animal
hides and skins), or on any fishery product, shall not
affect any contract to export entered into before the
date on which such controls are imposed. For pur-
poses of this paragraph, the term ‘‘contract to export’’
includes, but is not limited to, an export sales agree-
ment and an agreement to invest in an enterprise
which involves the export of commodities or tech-
nology.
(g) OIL EXPORTS FOR USE BY UNITED STATES MILI-
TARY FACILITIES.—For purposes of this section, 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(9), the President shall
issue regulations prohibiting any United States per-
son, 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:
(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
the race, religion, sex, or national origin of that
person or of any owner, officer, director, or em-
ployee of such person.
(C) Furnishing information with respect to
the race, religion, sex, or national origin of any
United States person or of any owner, officer,
director, 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 boycotting 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-
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 boycotting 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
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
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) ADDITIONAL REGULATIONS AND REPORTS.—
(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(9).
(2) REPORTS
BY
UNITED
STATES
PERSONS.—
Such regulations shall require that any United States
person receiving a request for the furnishing of infor-
mation, the entering into or implementing of agree-
ments, or the taking of any other action referred to
in section 103(9) 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(9).
(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. Subject to the procedures
provided in this section—
(A) if referral of an application to other de-
partments or agencies for review is not required,
the Secretary shall, within 9 days after receiving
the application, issue a license or notify the ap-
plicant of the intent to deny the application; or
(B) if referral of the application to other de-
partments or agencies for review is required, the
Secretary shall, within 30 days after referral of
any such application to other departments or
agencies—
(i) issue a license;
(ii) notify the applicant of the intent
to deny the application; or
(iii) ensure that the application is sub-
ject to the interagency resolution process set
forth in subsection (d).
(2) RECOMMENDATIONS OF OTHER AGENCIES.—
The Secretary shall seek information and rec-
ommendations from the Department of Defense and
other departments and agencies of the United States
that are identified by the President as being con-
cerned with factors having an important bearing on
exports administered under this title. Such depart-
ments and agencies shall cooperate fully and prompt-
ly in rendering information and recommendations.
(3) PROCEDURES.—In guidance and regulations
that implement this section, the Secretary shall de-
scribe the procedures required by this section, the re-
sponsibilities of the Secretary and of other depart-
ments and agencies in reviewing applications, the
rights of the applicant, and other relevant matters af-
fecting the review of license applications.
(4) CALCULATION
OF
PROCESSING
TIMES.—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
weekend or holiday, that action shall be taken no
later than the following business day.
(5) RELIABILITY OF PARTIES.—In reviewing ap-
plications for export 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 consider all sources of information, in-
cluding results of other United States Government ac-
tions, such as actions by the Committee on Foreign
Investment in the United States, investigations of di-
versions from authorized end uses or end users, and
intelligence information, except that the consideration
of such information in connection with the evaluation
of the reliability of parties shall not authorize the di-
rect or indirect disclosure of classified information or
sources and methods of gathering classified informa-
tion and shall not confer a right on private parties
to have access to classified information.
(b) INITIAL SCREENING.—
(1) UPON RECEIPT OF APPLICATION.—Upon re-
ceipt of an export license application, the Secretary
shall enter and maintain in the records of the Depart-
ment of Commerce information regarding the receipt
and status of the application.
(2) INITIAL PROCEDURES.—Promptly upon re-
ceiving any license application, the Secretary shall—
(A) contact the applicant if the application
is improperly completed or if additional infor-
mation is required, and hold the application for
a reasonable time while the applicant provides
the necessary corrections or information, and
such time shall not be included in calculating the
time periods prescribed in this section;
(B) refer the application, including all in-
formation submitted by the applicant, and all
necessary recommendations and analyses by the
Secretary to the Department of Defense and
other departments and agencies identified by the
President under subsection (a)(2); and
(C) ensure that the classification stated on
the application for the export items is correct, re-
turn the application if a license is not required,
and, if referral to other departments or agencies
is not required, grant the application or notify
the applicant of the Secretary’s intent to deny
the application.
In the event that the head of a department or agency
determines that certain types of applications need not
be referred to the department or agency, such depart-
ment or agency head shall notify the Secretary of the
specific types of such applications that the depart-
ment or agency does not wish to review.
(c) ACTION
BY OTHER DEPARTMENTS
AND AGEN-
CIES.—
(1) REFERRAL TO OTHER AGENCIES.—The Sec-
retary shall promptly refer license applications to de-
partments and agencies under subsection (b) to make
recommendations and provide information to the Sec-
retary.
(2) RESPONSIBILITY OF REFERRAL AGENCIES.—
The Department of Defense and other reviewing de-
partments and agencies shall organize their resources
and units to plan for the prompt and expeditious in-
ternal dissemination of export license applications, if
necessary, so as to avoid delays in responding to the
referral of applications.
(3) ADDITIONAL
INFORMATION
REQUESTS.—
Each department or agency to which a license appli-
cation is referred shall specify to the Secretary any
information that is not in the application that would
be required for the department or agency to make a
determination with respect to the application, and the
Secretary shall promptly request such information
from the applicant. The time that may elapse between
the date the information is requested by that depart-
ment or agency and the date the information is re-
ceived by that department or agency shall not be in-
cluded in calculating the time periods prescribed in
this section.
(4) TIME PERIOD FOR ACTION BY REFERRAL DE-
PARTMENTS AND AGENCIES.—Within 30 days after
receiving a referral of an application under this sec-
tion, the department or agency concerned shall pro-
vide the Secretary with a recommendation either to
approve the license or to deny the license. A rec-
ommendation that the Secretary deny a license shall
include a statement of reasons for the recommenda-
tion that are consistent with the provisions of this
title, and shall cite both the specific statutory and the
regulatory basis for the recommendation. A depart-
ment or agency that fails to provide a recommenda-
tion in accordance with this paragraph within that
30-day period shall be deemed to have no objection to
the decision of the Secretary on the application.
(d) INTERAGENCY RESOLUTION.—
(1) INITIAL RESOLUTION.—The Secretary shall
establish, select the chairperson of, and determine pro-
cedures for an interagency committee to review ini-
tially all license applications on which the depart-
ments and agencies reviewing the applications under
this section are not in agreement. The chairperson of
such committee shall consider the recommendations of
the departments and agencies reviewing a particular
application and inform them of his or her decision on
the application, which may include a decision that
the particular application requires further consider-
ation under the procedures established under para-
graph (2). An application may also be referred to fur-
ther consideration under the procedures established
under paragraph (2) if an appeal from the chair-
person’s decision is made in writing by an official of
the department or agency concerned who is appointed
by the President by and with the advice and consent
of the Senate, or an officer properly acting in such
capacity.
(2) FURTHER RESOLUTION.—The President shall
establish a process for the further review and deter-
mination of export license applications pursuant to a
decision by the chairperson under paragraph (1) or
an appeal by a department or agency under para-
graph (1). Such process shall—
(A) be chaired by the Secretary or his or her
designee;
(B) ensure that license applications are re-
solved or referred to the President no later than
90 days after the date the license application is
initially received by the Secretary;
(C) provide that a department or agency
dissenting from the decision reached under sub-
paragraph (B) may appeal the decision to the
President; and
(D) provide that a department or agency
that fails to take a timely position, citing the
specific statutory and regulatory bases for a de-
nial, shall be deemed to have no objection to the
pending decision.
(e) ACTIONS BY THE SECRETARY IF APPLICATION DE-
NIED.—In cases where the Secretary has determined that
an application should be denied, the applicant shall be in-
formed in writing of—
(1) the determination to deny;
(2) the specific statutory and regulatory bases for
the proposed denial;
(3) what, if any, modifications in or restrictions
on the items for which the license was sought would
allow such export to be compatible with export con-
trols imposed under this title, and which officer or
employee of the Department of Commerce would be in
a position to discuss modifications or restrictions
with the applicant and the specific statutory and reg-
ulatory bases for imposing such modifications or re-
strictions;
(4) to the extent consistent with the national se-
curity and foreign policy of the United States, the
specific considerations that led to the determination
to deny the application; and
(5) the availability of appeal procedures.
The Secretary shall allow the applicant 20 days to re-
spond to the determination before the license applica-
tion is denied.
(f) EXCEPTIONS FROM REQUIRED TIME PERIODS.—
The following actions related to processing an application
shall not be included in calculating the time periods pre-
scribed in this section:
(1) AGREEMENT
OF
THE
APPLICANT.—Delays
upon which the Secretary and the applicant mutually
agree.
(2) PRELICENSE
CHECKS.—A prelicense check
that may be required to establish the identity and re-
liability of the recipient of items controlled under this
title, if—
(A) the need for the prelicense check is de-
termined by the Secretary, or by another depart-
ment or agency if the request for the prelicense
check is made by such department or agency;
(B) the request for the prelicense check is
sent by the Secretary within 5 days after the de-
termination that the prelicense check is required;
and
(C) the analysis of the result of the
prelicense check is completed by the Secretary
within 5 days.
(3) REQUESTS
FOR
GOVERNMENT-TO-GOVERN-
MENT ASSURANCES.—Any request by the Secretary or
another department or agency for government-to-gov-
ernment assurances of suitable end uses of items ap-
proved for export, when failure to obtain such assur-
ances would result in rejection of the application, if—
(A) the request for such assurances is sent
to the Secretary of State within 5 days after the
determination that the assurances are required;
(B) the Secretary of State initiates the re-
quest of the relevant government within 10 days
thereafter; and
(C) the license is issued within 5 days after
the Secretary receives the requested assurances.
Whenever a prelicense check described in paragraph
(2) and assurances described in this paragraph are
not requested within the time periods set forth there-
in, then the time expended for such prelicense check
or assurances shall be included in calculating the
time periods established by this section.
(4) MULTILATERAL
REVIEW.—Multilateral re-
view of a license application to the extent that such
multilateral review is required by a relevant multilat-
eral regime.
(5) CONGRESSIONAL NOTIFICATION.—Such time
as is required for mandatory congressional notifica-
tions under this title.
(6) CONSULTATIONS.—Consultation with other
governments, if such consultation is provided for by
a relevant multilateral regime as a precondition for
approving a license.
(g) APPEALS.—
(1) IN GENERAL.—The Secretary shall establish
appropriate procedures for any applicant to appeal to
the Secretary the denial of an export license applica-
tion or other administrative action under this title.
(2) FILING OF PETITION.—In any case in which
any action prescribed in this section is not taken on
a license application within the time periods estab-
lished by this section (except in the case of a time pe-
riod extended under subsection (f) of which the appli-
cant is notified), the applicant may file a petition
with the Secretary requesting compliance with the re-
quirements of this section. When such petition is filed,
the Secretary shall take immediate steps to correct the
situation giving rise to the petition and shall imme-
diately notify the applicant of such steps.
(3) BRINGING
COURT
ACTION.—If, within 20
days after a petition is filed under paragraph (2), the
processing of the application has not been brought
into conformity with the requirements of this section,
or the application has been brought into conformity
with such requirements but the Secretary has not so
notified the applicant, the applicant may bring an
action in an appropriate United States district court
for an order requiring compliance with the time peri-
ods required by this section. The United States dis-
trict courts shall have jurisdiction to provide such re-
lief, as appropriate.
(h) CLASSIFICATION REQUESTS AND OTHER INQUIR-
IES.—
(1) CLASSIFICATION REQUESTS.—In any case in
which the Secretary receives a written request asking
for the proper classification of an item on the control
index, the Secretary shall, within 14 days after re-
ceiving the request, inform the person making the re-
quest of the proper classification.
(2) OTHER INQUIRIES.—In any case in which
the Secretary receives a written request for informa-
tion about the applicability of licensing requirements
under this title to a proposed export transaction or
series of transactions, the Secretary shall, within 30
days after receiving the request, reply with that infor-
mation to the person making the request.
SEC. 110. VIOLATIONS.
(a) CRIMINAL PENALTIES.—
(1) VIOLATIONS BY AN INDIVIDUAL.—Except as
provided in paragraph (3), any individual who
knowingly violates or conspires to or attempts to vio-
late any provision of this title or any regulation, li-
cense, or order issued under this title shall be fined
not more than 5 times the value of the exports in-
volved or $500,000, whichever is greater, or impris-
oned not more than 10 years, or both.
(2) VIOLATIONS BY A PERSON OTHER THAN AN
INDIVIDUAL.—Except as provided in paragraph (3),
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 involved or
$1,000,000, whichever is greater.
(3) ANTIBOYCOTT VIOLATIONS.—
(A) Any individual who knowingly violates
or conspires to or attempts to violate any regula-
tion or order issued under section 108 shall be
fined, for each violation, not more than 5 times
the value of the exports involved or $250,000,
whichever is greater, or imprisoned not more
than 10 years, or both.
(B) Any person other than an individual
who knowingly violates or conspires to or at-
tempts to violate any regulation or order issued
under section 108 shall be fined, for each viola-
tion, not more than 5 times the value of the ex-
ports involved or $500,000, whichever is greater.
(b) FORFEITURE OF PROPERTY INTEREST AND PRO-
CEEDS.—
(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 chapter 46 of
title 18, United States Code, to the same extent as
property subject to forfeiture under that chapter.
(c) CIVIL PENALTIES; ADMINISTRATIVE SANCTIONS.—
(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 subject to this title, on account
of any violation of this title or any regulation, li-
cense, 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-
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 amount paid in satisfaction of
any civil penalty imposed under subsection (c) shall be cov-
ered into the Treasury as a miscellaneous receipt. The head
of the department 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. Notwithstanding 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,
(B) the International Emergency Economic
Powers Act,
(C) section 793, 794, or 798 of title 18,
United States Code,
(D) section 4(b) of the Internal Security Act
of 1950 (50 U.S.C. 783(b)),
(E) section 38 of the Arms Export Control
Act,
(F) section 16 of the Trading with the
Enemy Act (59 U.S.C. App. 16),
(G) any regulation, license, or order issued
under any provision of law listed in subpara-
graph (A), (B), (C), (D), (E), or (F), or
(H) section 371 or 1001 of title 18, United
States Code, if in connection with the export of
commodities or technology controlled under this
title, any regulation, license or order issued
under the International Emergency Economic
Powers Act, or defense articles or defense services
controlled under 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-
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 becomes final 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), (e), (f), or (g) limits—
(1) the availability of other administrative or ju-
dicial remedies with respect to violations of this title,
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
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. In an
action brought under this subsection, unless the court finds
that the interests of justice require otherwise, the court shall
designate the substantially prevailing party or parties in
the action, and the remaining parties shall pay the reason-
able attorneys’ fees of the substantially prevailing party or
parties in such proportion as the court shall determine.
SEC. 111. CONTROLLING PROLIFERATION ACTIVITY.
(a) PROLIFERATION CONTROLS.—
(1) MISSILE TECHNOLOGY CONTROLS.—The Sec-
retary, in consultation with the Secretary of Defense
and the heads of other appropriate departments and
agencies and consistent with sections 103 and
104(g)—
(A) shall establish and maintain, as part of
the control index established under section
104(b), dual-use items on the MTCR Annex;
(B) may include, as part of the control
index established under section 104(b), items
that—
100
(i) would make a material contribu-
tion to the design, development, test, pro-
duction, stockpiling, or use of missile deliv-
ery systems, and
(ii) are not included in the MTCR
Annex but which the United States has pro-
posed to the other members of the MTCR for
inclusion in the MTCR Annex; and
(C) shall require a license under paragraph
(1) or (2) of section 104(a), consistent with the
arrangements of the MTCR, for—
(i) any export of items on the control
index pursuant to subparagraphs (A) and
(B) to any country; and
(ii) any export of items that the ex-
porter knows is destined for a project or fa-
cility for the design, development, or manu-
facture of a missile in a country that is not
an adherent to the MTCR.
(2) CHEMICAL AND BIOLOGICAL WEAPONS CON-
TROLS.—The Secretary, in consultation with the Sec-
retary of Defense and the heads of other appropriate
departments and agencies and consistent with sections
103 and 104(g)—
101
(A) shall establish and maintain, as part of
the control index established under section
104(b), dual-use items listed by the Australia
Group or the Chemical Weapons Convention;
(B) may include, as part of the control
index established under section 104(b), items
that—
(i) would make a material contribu-
tion to the design, development, test, pro-
duction, stockpiling, or use of chemical or
biological weapons, and
(ii) are not contained on the list of
controlled items of the Australia Group but
which the United States has proposed to the
other members of the Australia Group for
inclusion in such list; and
(C) shall require a license under paragraph
(1) or (2) of section 104(a), consistent with the
arrangements of the Australia Group and the
Chemical Weapons Convention, for—
(i) any export of items on the control
index pursuant to subparagraphs (A) and
(B) to any country, except as provided for
in section 105(e); and
102
(ii) any export of items that the ex-
porter knows is destined for a project or fa-
cility for the design, development, or manu-
facture of a chemical or biological weapon.
(3) POLICY OF DENIAL OF LICENSES.—(A) Li-
censes under paragraph (1)(C) should in general be
denied if the ultimate consignee of the commodities or
technology is a facility in a country that is not an
adherent to the MTCR and the facility is designed to
develop or build missiles.
(B) Licenses under paragraph (1)(C) shall be de-
nied if the ultimate consignee of the commodities or
technology is a facility in a country the government
of which has been determined under section 106(i)(1)
to have repeatedly provided support for acts of inter-
national terrorism.
(b) TECHNICAL AMENDMENTS TO ARMS EXPORT CON-
TROL ACT.—(1) Section 71(a) of the Arms Export Control
Act (22 U.S.C. 2797(a)) is amended by striking ‘‘6(l) of
the Export Administration Act of 1979’’ and inserting
‘‘111(a) of the Export Administration Act of 1996’’.
(2) Section 81(a)(1) of the Arms Export Control Act
(22 U.S.C. 2798(a)(1)) is amended in subparagraphs (A)
and (B) by inserting ‘‘under this Act’’ after ‘‘United States’’
the second place it appears in each subparagraph.
103
(c) GENERAL PROHIBITION.—Notwithstanding any
other provision of this title, the export of commodities or
technology shall be prohibited if the ultimate consignee is
a program or activity for the design, development, manufac-
ture, stockpiling, testing, or other acquisition of a weapon
of mass destruction or missile in a country that is not an
adherent to the regime controlling such weapon or missile,
unless the Secretary determines such export would not make
a material contribution to such program or activity.
(d) CHEMICAL
AND
BIOLOGICAL
WEAPONS
PRO-
LIFERATION SANCTIONS.—
(1) IMPOSITION OF SANCTIONS.—
(A) DETERMINATION BY THE PRESIDENT.—
Except as provided in paragraph (2)(B), the
President shall impose both of the sanctions de-
scribed in paragraph (3) if the President deter-
mines that a foreign person, on or after the date
of the enactment of this Act, has knowingly and
materially contributed—
(i) through the export from the United
States of any goods or technology that are
subject to the jurisdiction of the United
States under this title, or
(ii) through the export from any other
country of any goods or technology that
104
would be, if they were United States goods
or technology, subject to the jurisdiction of
the United States under this title,
to the efforts by any foreign country, project, or
entity described in subparagraph (B) to use, de-
velop, produce, stockpile, or otherwise acquire
chemical or biological weapons.
(B) COUNTRIES, PROJECTS, OR
ENTITIES
RECEIVING ASSISTANCE.—Subparagraph (A) ap-
plies in the case of—
(i) any foreign country that the Presi-
dent determines has, at any time after Jan-
uary 1, 1980—
(I) used chemical or biological
weapons in violation of international
law;
(II) used lethal chemical or bio-
logical weapons against its own na-
tionals; or
(III) made substantial prepara-
tions to engage in the activities de-
scribed in subclause (I) or (II);
(ii) any foreign country whose govern-
ment is determined for purposes of section
106(i) to be a government that has repeat-
105
edly provided support for acts of inter-
national terrorism; or
(iii) any other foreign country, project,
or entity designated by the President for
purposes of this subsection.
(C) PERSONS
AGAINST
WHICH
SANCTIONS
ARE TO BE IMPOSED.—Sanctions shall be im-
posed pursuant to subparagraph (A) on—
(i) the foreign person with respect to
which the President makes the determina-
tion described in that subparagraph;
(ii) any successor entity to that foreign
person;
(iii) any foreign person that is a par-
ent or subsidiary of that foreign person if
that parent or subsidiary knowingly as-
sisted in the activities which were the basis
of that determination; and
(iv) any foreign person that is an affil-
iate of that foreign person if that affiliate
knowingly assisted in the activities which
were the basis of that determination and if
that affiliate is controlled in fact by that
foreign person.
106
(2) CONSULTATIONS WITH AND ACTIONS BY FOR-
EIGN GOVERNMENT OF JURISDICTION.—
(A) 
CONSULTATIONS.—If 
the 
President
makes the determinations described in paragraph
(1)(A) with respect to a foreign person, the Con-
gress urges the President to initiate consultations
immediately with the government with primary
jurisdiction 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 a period of up to 90 days. Following
these consultations, the President shall impose
sanctions unless the President determines and
certifies to the Congress that that government has
taken specific and effective actions, including ap-
propriate penalties, to terminate the involvement
of the foreign person in the activities described
in paragraph (1)(A). The President may delay
imposition of sanctions for an additional period
of up to 90 days if the President determines and
certifies to the Congress that that government is
107
in the process of taking the actions described in
the preceding sentence.
(C) REPORT TO CONGRESS.—The President
shall report to the Congress, not later than 90
days after making a determination under para-
graph (1)(A), on the status of consultations with
the appropriate government under this sub-
section, and the basis for any determination
under subparagraph (B) of this paragraph that
such government has taken specific corrective ac-
tions.
(3) SANCTIONS.—
(A) 
DESCRIPTION
OF
SANCTIONS.—The
sanctions to be imposed pursuant to paragraph
(1)(A) are, except as provided in subparagraph
(B) of this paragraph, the following:
(i) 
PROCUREMENT
SANCTION.—The
United States Government shall not pro-
cure, or enter into any contract for the pro-
curement of, any goods or services from any
person described in paragraph (1)(C).
(ii) IMPORT SANCTIONS.—The impor-
tation into the United States of products
produced by any person described in para-
graph (1)(C) shall be prohibited.
108
(B) EXCEPTIONS.—The President shall not
be required to apply or maintain sanctions
under this subsection—
(i) in the case of procurement of de-
fense articles or defense services—
(I) under existing contracts or
subcontracts, including the exercise of
options for production quantities to
satisfy United States operational mili-
tary requirements;
(II) if the President determines
that the person or other entity to which
the sanctions would otherwise be ap-
plied is a sole source supplier of the de-
fense articles or services, that the de-
fense articles or services are essential,
and that alternative sources are not
readily or reasonably available; or
(III) if the President determines
that such articles or services are essen-
tial to the national security under de-
fense coproduction agreements;
(ii) to products or services provided
under contracts entered into before the date
109
on which the President publishes his inten-
tion to impose sanctions;
(iii) to—
(I) spare parts,
(II) component parts, but not fin-
ished products, essential to United
States products or production, or
(III) routine servicing and main-
tenance of products, to the extent that
alternative sources are not readily or
reasonably available;
(iv) to information and technology es-
sential to United States products or produc-
tion; or
(v) to medical or other humanitarian
items.
(4) TERMINATION OF SANCTIONS.—The sanctions
imposed pursuant to this subsection shall apply for a
period of at least 12 months following the imposition
of sanctions and shall cease to apply thereafter only
if the President determines and certifies to the Con-
gress that reliable information indicates that the for-
eign person with respect to which the determination
was made under paragraph (1)(A) has ceased to aid
or abet any foreign government, project, or entity in
110
its efforts to acquire chemical or biological weapons
capability as described in that paragraph.
(5) WAIVER.—
(A) CRITERION
FOR
WAIVER.—The Presi-
dent may waive the application of any sanction
imposed on any person pursuant to this sub-
section, after the end of the 12-month period be-
ginning on the date on which that sanction was
imposed on that person, if the President deter-
mines and certifies to the Congress that such
waiver is important to the national security in-
terests of the United States.
(B) NOTIFICATION OF AND REPORT TO CON-
GRESS.—If the President decides to exercise the
waiver authority provided in subparagraph (A),
the President shall so notify the Congress not less
than 20 days before the waiver takes effect. Such
notification shall include a report fully articu-
lating the rationale and circumstances which led
the President to exercise the waiver authority.
(6) DEFINITION OF FOREIGN PERSON.—For pur-
poses of this subsection, the term ‘‘foreign person’’
means—
111
(A) an individual who is not a citizen of
the United States or an alien lawfully admitted
for permanent residence to the United States; or
(B) a corporation, partnership, or other en-
tity which is created or organized under the laws
of a foreign country or which has its principal
place of business outside the United States.
(e) MISSILE PROLIFERATION CONTROL VIOLATIONS.—
(1) VIOLATIONS BY UNITED STATES PERSONS.—
(A) SANCTIONS.—(i) If the President deter-
mines that a United States person knowingly—
(I) exports, transfers, or otherwise en-
gages in the trade of any item on the
MTCR Annex, in violation of the provisions
of section 38 (22 U.S.C. 2778) or chapter 7
of the Arms Export Control Act, this title,
or any regulations or orders issued under
any such provisions,
(II) conspires to or attempts to engage
in such export, transfer, or trade, or
(III) facilitates such export, transfer,
or trade by any other person,
then the President shall impose the applicable
sanctions described in clause (ii).
112
(ii) The sanctions which apply to a United
States person under clause (i) are the following:
(I) If the item on the MTCR Annex in-
volved in the export, transfer, or trade is
missile equipment or technology within cat-
egory II of the MTCR Annex, then the
President shall deny to such United States
person, for a period of 2 years, licenses for
the transfer of missile equipment or tech-
nology controlled under this title.
(II) If the item on the MTCR Annex
involved in the export, transfer, or trade is
missile equipment or technology within cat-
egory I of the MTCR Annex, then the Presi-
dent shall deny to such United States per-
son, for a period of not less than 2 years,
all licenses for items the export of which is
controlled under this title.
(B) DISCRETIONARY
SANCTIONS.—In the
case of any determination referred to in sub-
paragraph (A), the Secretary may pursue any
other appropriate penalties under section 110.
(C) WAIVER.—The President may waive the
imposition of sanctions under subparagraph (A)
113
on a person with respect to a product or service
if the President certifies to the Congress that—
(i) the product or service is essential to
the national security of the United States;
and
(ii) such person is a sole source sup-
plier of the product or service, the product
or service is not available from any alter-
native reliable supplier, and the need for the
product or service cannot be met in a time-
ly manner by improved manufacturing
processes or technological developments.
(2) TRANSFERS
OF
MISSILE
EQUIPMENT
OR
TECHNOLOGY BY FOREIGN PERSONS.—
(A) SANCTIONS.—(i) Subject to subpara-
graphs (C) through (G), if the President deter-
mines that a foreign person, after the date of the
enactment of this section, knowingly—
(I) exports, transfers, or otherwise en-
gages in the trade of any MTCR equipment
or technology that contributes to the design,
development, or production of missiles in a
country that is not an adherent to the
MTCR and would be, if it were United
States-origin equipment or technology, sub-
114
ject to the jurisdiction of the United States
under this title,
(II) conspires to or attempts to engage
in such export, transfer, or trade, or
(III) facilitates such export, transfer,
or trade by any other person,
or if the President has made a determination
with respect to a foreign person, under section
73(a) of the Arms Export Control Act, then the
President shall impose on that foreign person the
applicable sanctions under clause (ii).
(ii) The sanctions which apply to a foreign
person under clause (i) are the following:
(I) If the item involved in the export,
transfer, or trade is within category II of
the MTCR Annex, then the President shall
deny, for a period of 2 years, licenses for the
transfer to such foreign person of missile
equipment or technology the export of which
is controlled under this title.
(II) If the item involved in the export,
transfer, or trade is within category I of the
MTCR Annex, then the President shall
deny, for a period of not less than 2 years,
licenses for the transfer to such foreign per-
115
son of items the export of which is con-
trolled under this title.
(III) If, in addition to actions taken
under subclauses (I) and (II), the President
determines that the export, transfer, or
trade has substantially contributed to the
design, development, or production of mis-
siles in a country that is not an adherent
to the MTCR, then the President shall pro-
hibit, for a period of not less than 2 years,
the importation into the United States of
products produced by that foreign person.
(B) INAPPLICABILITY
WITH
RESPECT
TO
MTCR ADHERENTS.—Subparagraph (A) does not
apply with respect to—
(i) any export, transfer, or trading ac-
tivity that is authorized by the laws of an
adherent to the MTCR, if such authoriza-
tion is not obtained by misrepresentation or
fraud; or
(ii) any export, transfer, or trade of an
item to an end user in a country that is an
adherent to the MTCR.
(C) EFFECT OF ENFORCEMENT ACTIONS BY
MTCR ADHERENTS.—Sanctions set forth in sub-
116
paragraph (A) may not be imposed under this
paragraph on a person with respect to acts de-
scribed in such subparagraph or, if such sanc-
tions are in effect against a person on account
of such acts, such sanctions shall be terminated,
if an adherent to the MTCR is taking judicial or
other enforcement against that person with re-
spect to such acts, or that person has been found
by the government of an adherent to the MTCR
to be innocent of wrongdoing with respect to such
acts.
(D) ADVISORY
OPINIONS.—The Secretary,
in consultation with the Secretary of State and
the Secretary of Defense, may, upon the request
of any person, issue an advisory opinion to that
person as to whether a proposed activity by that
person would subject that person to sanctions
under this paragraph. Any person who relies in
good faith on such an advisory opinion which
states that the proposed activity would not sub-
ject a person to such sanctions, and any person
who thereafter engages in such activity, may not
be made subject to such sanctions on account of
such activity.
119
sources are not readily or reasonably
available; or
(III) if the President determines
that such articles or services are essen-
tial to the national security of the
United States under defense coproduc-
tion agreements;
(ii) to products or services provided
under contracts entered into before the date
on which the President publishes his inten-
tion to impose the sanctions; or
(iii) to—
(I) spare parts,
(II) component parts, but not fin-
ished products, essential to United
States products or production,
(III) routine services and mainte-
nance of products, to the extent that al-
ternative sources are not readily or
reasonably available, or
(IV) information and technology
essential to United States products or
production.
(3) DEFINITIONS.—For purposes of this sub-
section—
120
(A) the terms ‘‘missile equipment or tech-
nology’’ and ‘‘MTCR equipment or technology’’
mean those items listed in category I or category
II of the MTCR Annex;
(B) the term ‘‘foreign person’’ means any
person other than a United States person;
(C)(i) the term ‘‘person’’ means a natural
person as well as a corporation, business associa-
tion, partnership, society, trust, any other non-
governmental entity, organization, or group, and
any governmental entity operating as a business
enterprise, and any successor of any such entity;
and
(ii) in the case of a country where it may
be impossible to identify a specific governmental
entity referred to in clause (i), the term ‘‘person’’
means—
(I) all activities of that government re-
lating to the development or production of
any missile equipment or technology; and
(II) all activities of that government
affecting the development or production of
aircraft, electronics, and space systems or
equipment; and
121
(D) the term ‘‘otherwise engaged in the
trade of’’ means, with respect to a particular ex-
port or transfer, to be a freight forwarder or des-
ignated exporting agent, or a consignee or end
user of the item to be exported or transferred.
(f) EFFECT ON OTHER LAWS.—The provisions of this
section do not affect any activities subject to the reporting
requirements contained in title V of the National Security
Act of 1947.
(g) SEEKING MULTILATERAL SUPPORT FOR UNILAT-
ERAL SANCTIONS.—The Secretary of State, in consultation
with appropriate departments and agencies, shall seek the
support of other countries for sanctions imposed under this
section.
SEC. 112. ADMINISTRATIVE AND JUDICIAL REVIEW.
(a) APPLICABILITY.—
(1) EXEMPTIONS FROM ADMINISTRATIVE PROCE-
DURE.—Except as provided in this section, the func-
tions exercised under this title are excluded from the
operation of sections 551, 553 through 559, and 701
through 706 of title 5, United States Code.
(2) JUDICIAL REVIEW.—Except as otherwise pro-
vided in this section, a final agency action under this
title may be reviewed by appeal to the United States
Court of Appeals for the District of Columbia Circuit,
122
to the extent provided in this paragraph. The court’s
review in any such appeal shall be limited to deter-
mining whether—
(A) a regulation—
(i) fails to take an action required by
this title;
(ii) takes an action prohibited by this
title; or
(iii) otherwise violates this title;
(B) an agency action violates this title;
(C) an agency action violates an agency
regulation establishing time requirements or
other procedural requirements of a non-discre-
tionary nature;
(D) the issuance of regulations required by
this title complies with time restrictions imposed
by this title;
(E) license decisions are made and appeals
thereof are concluded in compliance with time
restrictions imposed by this title;
(F) classifications and advisory opinions
are issued in compliance with time restrictions
imposed by this title;
123
(G) unfair impact determinations under
section 114(k) are in compliance with time re-
strictions imposed by that section; or
(H) the United States has complied with
the requirements of section 114(k) after an un-
fair impact determination has been made.
(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. The imposition of any such administrative
sanction shall be subject to judicial review in accord-
ance with sections 701 through 706 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
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
124
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). No such action may be commenced more than
5 years after the order imposing the civil penalty becomes
final. In such an action, the validity, amount, and appro-
priateness of such penalty shall not be subject to review.
(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, including any diversion
of goods or technology from an authorized end use or
end user, or in any case in which a criminal indict-
ment 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 denying that person’s
United States export privileges (hereafter in this sub-
section referred to a ‘‘temporary denial order’’). A
temporary denial order may be effective for no longer
than 180 days, but may be renewed by the Secretary,
125
following notice and an opportunity 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
126
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 ad-
ministrative law judge and the Secretary shall con-
stitute the administrative record for purposes of re-
view 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
127
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.
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
128
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
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, prelicense and postshipment 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
129
search, detain (after search), and seize items at those
places within the United States other than those ports
specified in subparagraph (B). The search, detention
(after search), or seizure of items at those ports and
places specified in subparagraph (B) may be con-
ducted by officers and employees of the Department
of Commerce only with the concurrence of the Com-
missioner 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,
130
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, on request of the Attorney General and
after notice to any such person and a hearing,
shall have jurisdiction to issue an order requir-
ing such person to appear and give testimony 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. The attendance of witnesses
and the production of documents provided for in
this clause may be required from any State, the
District of Columbia, or in any territory of the
United States at any designated place. Witnesses
subpoenaed under this subsection shall be paid
the same fees and mileage as are paid witnesses
in the district courts of the United States.
(B)(i) Any officer or employee of the Office of
Export 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
131
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.
(ii) Officers and employees of the Office of Ex-
port Enforcement designated by the Secretary under
paragraph (2) shall exercise the authorities set forth
in clause (i) pursuant to guidelines approved by the
Attorney General.
(C) Any officer or employee of the United States
Customs Service designated by the Commissioner of
Customs under paragraph (2) may do the following
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
132
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.
(iii) Detain (after search) or seize any item,
for purposes of securing for trial or forfeiture to
the United States, on or about such vehicle, ves-
sel, aircraft, or person or in such package or con-
tainer, 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.
(4) OTHER AUTHORITIES NOT AFFECTED.—The
authorities conferred by this section are in addition
to any authorities conferred under other laws.
(b) FORFEITURE.—Any 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—
133
(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,
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
134
for criminal action in accordance with this title or to both
the Secretary and the Attorney General.
(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), sections
3732(a) and 3741 of the Revised Statutes of the
United States (41 U.S.C. 11(a) and 22), and
subsections (a) and (c) of section 304, and sec-
tion 305 of the Federal Property and Adminis-
trative 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
135
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
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
136
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.
(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
142
(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
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), by and
with the advice and consent of the Senate, 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, 106, or 111(a) may