198
materials or services provided as part of such activities.
The contributions collected may be retained for use in cov-
ering the costs of such activities, and for providing infor-
mation to the public with respect to this title and other
export control programs of the United States and other
governments.
(i) SUPPORT OF OTHER COUNTRIES’ EXPORT CON-
TROL PROGRAM.—The Secretary is authorized to provide
training to officials of other countries on the principles
and procedures for the implementation of effective export
controls and shall participate in any such training pro-
vided by other departments and agencies of the United
States.
(j) 
INCORPORATED
COMMODITIES
AND
TECH-
NOLOGY.—
(1) COMMODITIES
CONTAINING
CONTROLLED
PARTS AND COMPONENTS.—Export licenses may not
be required under this title or any other provision of
law for a commodity solely because the commodity
contains parts or components on which export con-
trols are in effect under this title if such parts or
components—
(A) are essential to the functioning of the
commodity;
199
(B) are customarily included in sales of the
commodity in countries other than controlled
countries; and
(C) comprise 25 percent or less of the total
value of the commodity,
unless the commodity itself, if exported, would by
virtue of the functional characteristics of the com-
modity as a whole meet the requirements of sub-
paragraph (A) or (B) of section 105(a)(1).
(2) REEXPORTS OF FOREIGN-MADE ITEMS IN-
CORPORATING U.S. ITEMS.—
(A) COMMODITIES.—(i) Subject to clause
(ii), no authority or permission may be required
under section 105 or 106 to reexport a com-
modity that is produced in a country other than
the United States and incorporates commodities
that are subject to the jurisdiction of the
United States, if the value of the controlled
United States content of the commodity pro-
duced in such other country is 25 percent or
less of the total value of the commodity.
(ii) No authority or permission may be re-
quired under section 106 to reexport to a ter-
rorist country, or to a country against which an
embargo described in section 106(f)(1) is in ef-
200
fect, a commodity that is produced in a country
other than the United States and incorporates
commodities that are subject to the jurisdiction
of the United States, if the value of the con-
trolled United States content of the commodity
produced in such other country is 10 percent or
less of the total value of the commodity.
(iii) For purposes of clause (ii), a ‘‘terror-
ist country’’ is a country with respect to which
a determination is in effect that was made
under section 106(i)(1)(A) of this Act, or sec-
tion 6(j)(1)(A) of the Export Administration
Act of 1979, that the government of such coun-
try has repeatedly provided support for acts of
international terrorism.
(B) TECHNOLOGY.—(i) No authority or
permission may be required under section 105
to reexport technology that is produced in a
country other than the United States and is
commingled with or drawn from technology that
is produced in the United States, if the value
of the controlled United States content of the
technology produced in such other country is 25
percent or less of the total value of the tech-
nology.
201
(ii) No authority or permission may be re-
quired under section 106 to reexport technology
that is produced in a country other than the
United States and is commingled with or drawn
from technology that is produced in the United
States, if the value of the controlled United
States content of the technology produced in
such other country is 10 percent or less of the
total value of the technology.
(C) CONTROLLED
CONTENT.—For pur-
poses of this paragraph, the ‘‘controlled United
States content’’ of a commodity or technology
means those commodities or technology that—
(i) are subject to the jurisdiction of
the United States;
(ii) are incorporated into the commod-
ity or technology; and
(iii) would, at the time of the reex-
port, require a validated license under sec-
tion 105 or 106 if exported from the Unit-
ed States to a country to which the com-
modity or technology is to be reexported.
(D) TREATMENT OF CERTAIN TECHNICAL
DATA.—For purposes of this subsection, tech-
nology and source code used to design or
202
produce commodities or software produced in a
country other than the United States are not
incorporated into such commodities or software.
(k) EXCEPTIONS FOR MEDICAL AND HUMANITARIAN
PURPOSES.—This title does not authorize controls on—
(1) medicine or medical supplies; or
(2) donations of items that are intended to
meet basic human needs, including food, educational
materials, seeds, hand tools, water resources equip-
ment, clothing and shelter materials, and basic
household supplies.
(l) SANCTITY
OF EXISTING CONTRACTS
AND LI-
CENSES.—
(1) IN GENERAL.—The President may not pro-
hibit the export of items under section 105 or 106—
(A) in performance of a contract, agree-
ment, or other contractual commitment entered
into before the effective date of any export con-
trols imposed on such items by this title, or the
date on which the President reports to the Con-
gress the President’s intention to impose con-
trols on the export of such items, whichever
date occurs first, or
(B) under a validated license or other au-
thorization issued under this title before the ef-
203
fective date of any export controls imposed on
such items by this title, or the date on which
the President reports to the Congress the Presi-
dent’s intention to impose controls on the ex-
port of such items, whichever date occurs first.
(2) EXCEPTION.—The prohibition in paragraph
(1) shall not apply if the President determines and
certifies to the Congress that—
(A) a breach of the peace poses a serious
and direct threat to the strategic interest of the
United States;
(B) the prohibition of exports under each
such contract, agreement, commitment, license,
or authorization will be directly instrumental in
remedying the situation posing the direct
threat; and
(C) the export controls will continue only
so long as the direct threat persists.
The authority of the President to make determina-
tions under this paragraph may not be delegated.
(m) PUBLICATION OF ACTIONS.—
(1) DECISIONS
AND
ACTIONS
OF
THE
SEC-
RETARY.—
(A) IN
GENERAL.—The Secretary shall
publish in the Federal Register, to the greatest
204
extent practicable, actions, procedures, and de-
cisions of the Secretary under this title, taking
into account restrictions on disclosure of classi-
fied or confidential information. The following
determinations of the Secretary shall in every
case be published in the Federal Register, un-
less a private party requested the determination
and asked that it not be published:
(i) Classification of a commodity or
technology on the control index.
(ii) Calculation of a commonly-used
control index parameter for a commodity
or technology, including all officially ac-
cepted composite theoretical performance
calculations 
for 
computers 
and
microprocessors.
(B) NOTICE OF REVISIONS.—Whenever the
Secretary makes any revision in the control
index with respect to any commodity or tech-
nology, or with respect to any country or des-
tination affected by controls imposed under sec-
tion 105 or section 106, the Secretary shall
publish in the Federal Register a notice of such
revision and shall specify in such notice under
which authority the revision is being made.
205
(2) EXPORT CONTROL REGIME ACTIONS.—
(A) IN GENERAL.—Not more than 90 days
after the date of the enactment of this Act, the
Secretary shall publish in the Federal Register
the full text of the lists of controlled items of
all export control regimes and all notes and un-
derstandings of the regimes concerning such
lists. The Secretary shall update the publication
under the preceding sentence at least once in
each 1-year period occurring after the original
publication under this subparagraph.
(B) CONTENTS.—The Secretary shall pub-
lish in the Federal Register—
(i) the full text of any agreements af-
fecting the lists of controlled items of all
export control regimes, together with all
notes, understandings, and other aspects of
such agreements and all revisions to such
texts;
(ii) subject to the limitations set forth
in subsection (g), decisions on requests for
exceptions permitted by such export con-
trol regimes for particular exports;
206
(iii) other actions and decisions of
such export control regimes, to the maxi-
mum extent possible; and
(iv) unreliable end users with respect
to items on which export controls are im-
posed under this title, and persons to
whom sanctions have been applied, or
whose export privileges have been denied,
under this title.
(C) TIMING.—Such publication shall be
made not more than 30 days after the agree-
ments are reached, the decisions are made, the
actions are taken, or the information becomes
available, as the case may be.
(D) EXCEPTION.—The publication of a
particular matter need not be made under this
paragraph to the extent that the Secretary sub-
mits a written finding to the Congress that to
publish that matter would be contrary to na-
tional or international security, would abridge
the confidentiality of the decision-making proc-
esses of an export control regime, or would oth-
erwise be inconsistent with the obligations of
the United States to an export control regime.
207
(n) NOTIFICATION OF THE PUBLIC; CONSULTATION
WITH INDUSTRY; RECORDKEEPING.—
(1) NOTIFICATION OF THE PUBLIC.—The Sec-
retary shall keep the public fully apprised of changes
in export control policy and procedures instituted
under this title with a view to encouraging trade.
(2) CONSULTATION WITH INDUSTRY.—The Sec-
retary shall meet regularly with export advisory com-
mittees appointed under section 104(f) in order to
obtain their views on United States export control
policy and the foreign availability of commodities
and technology.
(o) DELEGATION TO COCOM.—The Secretary, or an
officer or employee of the Department of Commerce des-
ignated by the Secretary, shall be a member of the perma-
nent United States delegation to COCOM or its successor
export control regime.
(p) EXPORT CONTROL ATTACHES.—The Secretary
shall assign a full-time export control attache to each of
those countries that—
(1) pose the greatest threat to the United
States and its allies with respect to the proliferation
of weapons of mass destruction and missiles; and
(2) received exports pursuant to the largest
number of licenses issued under sections 105 and
208
106, during the preceding 2 calendar years, as com-
pared to licenses issued under such sections for ex-
ports to all countries.
Each such attache shall give priority to conducting post-
shipment verifications, prelicense checks, and other mon-
itoring of end uses in the country to which the attache
is assigned.
(q) AUTHORIZATION FOR TECHNICAL DATA.—A vali-
dated license authorizing the export of any commodities
or technology under this title shall also authorize the ex-
port of operation technical data related to such commod-
ities or technology, whether or not such data is specifically
referenced in the license or license application, if the tech-
nical level of the data does not exceed the level reasonably
necessary to install, repair, maintain, inspect, operate, or
use the commodities or technology.
(r) LICENSES FOR SPARE PARTS NOT REQUIRED.—
An individual validated license shall not be required under
this title for replacement parts which are exported to re-
place on a one-for-one basis parts that were in a commod-
ity that was lawfully exported from the United States, un-
less the President determines that such a license should
be required for such parts.
209
SEC. 115. ANNUAL REPORT.
(a) CONTENTS.—Not later than March 1 of each
year, the Secretary shall submit to the Congress a report
on the administration of this title during the preceding
calendar year. All agencies shall cooperate fully with the
Secretary in providing information for such report. Such
report shall include detailed information on the following:
(1) The implementation of the policies set forth
in section 103, including delegations of authority by
the President under section 104(d), consultations
with the export advisory committees established
under section 104(f), and any changes in the exer-
cise of the authorities contained in sections 105(a),
106(a), 107(a), and 108(a).
(2) With respect to multilateral export controls
imposed or maintained under section 105, the fol-
lowing:
(A) The effectiveness of each export con-
trol regime, as required by section 105(h), in-
cluding all information required by section
105(h)(2).
(B) Adjustments to multilateral export
controls.
(C) The implementation of the export li-
censing treatment authorized by section 105(e).
210
(D) Determinations of foreign availability
made under section 105(i), the criteria used to
make such determinations, the removal of any
export controls under such subsection, and any
evidence demonstrating a need to maintain ex-
port controls notwithstanding foreign availabil-
ity.
(E) The operation of the indexing system
under section 105(k).
(3) With respect to unilateral export controls
imposed under section 106, the following:
(A) The effectiveness of such controls.
(B) Adjustments to such controls pursuant
to negotiations under subsections (a)(5) and (c)
of section 106.
(C) Embargoes imposed, maintained, or re-
moved in accordance with section 106, including
descriptions of each embargo and the rationale
for imposing, maintaining, or removing such
embargo.
(4) Short supply controls and monitoring under
section 107.
(5) Organizational and procedural changes un-
dertaken in furtherance of the policies set forth in
this title, including changes to increase the efficiency
211
of the export licensing process and to fulfill the re-
quirements of section 109, including an accounting
of appeals received, and actions taken pursuant
thereto, under section 109(g).
(6) Violations under section 110 and enforce-
ment activities under section 113.
(7) The issuance of regulations under this title.
(8) The results, in as much detail as may be in-
cluded consistent with the strategic and political in-
terests of the United States and the need to main-
tain the confidentiality of proprietary information, of
the reviews of the security control list, and any revi-
sions to the list resulting from such reviews, re-
quired by section 105.
(9) Each of the assessments described in sec-
tion 114(a)(2).
(b) INFORMATION ON SECTION 111.—
(1) INFORMATION
TO
BE
INCLUDED.—The
President shall include in each annual report under
subsection (a)—
(A) a description of the actions taken to
carry out section 111, including the imposition
and removal of sanctions under such section;
(B) a description of the current efforts of
foreign countries and subnational groups to ac-
212
quire equipment, materials, or technology to de-
velop, produce, or use chemical or biological
weapons, together with an assessment of the
current and likely future capabilities of such
countries and groups to develop, produce, stock-
pile, deliver, transfer, or use such weapons;
(C) a description of—
(i) the use of chemical or biological
weapons by foreign countries in violation of
international law,
(ii) the use of chemical or biological
weapons by subnational groups,
(iii) substantial preparations by for-
eign countries and subnational groups to
do so, and
(iv) 
the 
development, 
production,
stockpiling, or use of chemical or biological
weapons 
by 
foreign 
countries 
and
subnational groups; and
(D) a description of the extent to which
foreign persons or governments have knowingly
and materially assisted third countries or
subnational groups to acquire equipment, mate-
rial, or technology intended to develop, produce,
or use chemical or biological weapons.
213
(2) INFORMATION
SHOULD
BE
UNCLASSI-
FIED.—To the extent practicable, information sub-
mitted under paragraph (1) should be based on un-
classified information.
SEC. 116. DEFINITIONS.
As used in this title:
(1) AUSTRALIA GROUP.—The term ‘‘Australia
Group’’ means the multilateral arrangement in
which the United States participates that seeks to
prevent the proliferation of chemical and biological
weapons.
(2) COCOM.—The term ‘‘COCOM’’ means the
Coordinating Committee for Multilateral Export
Controls, and any successor entity.
(3) 
COMMODITY.—The 
term 
‘‘commodity’’
means any article, natural or manmade substance,
material, supply, or manufactured product, including
inspection and test equipment, and excluding tech-
nical data.
(4) CONTROL
OR
CONTROLLED.—The terms
‘‘control’’ and ‘‘controlled’’ refer to a requirement
that an export have a validated license or written re-
export authorization.
214
(5) CONTROL
INDEX.—The term ‘‘control
index’’ means the United States Commodity Control
Index established under section 104(c)(1).
(6) CONTROLLABLE.—The term ‘‘controllable’’
means capable of being made subject to an effective
prohibition or significant restriction on exports. A
commodity or technology shall not be considered to
be controllable unless it is—
(A) manufactured or sold by only a limited
number of suppliers who can be positively iden-
tified;
(B) consumed or used by only a limited
number of end users who can be positively iden-
tified and whose export activities can be con-
trolled; and
(C) individually traceable or not easily con-
cealed or disguised.
(7) CONTROLLED COUNTRY, CONTROLLED END
USE, AND CONTROLLED END USER.—(A) The term
‘‘controlled country’’ means a country identified
under section 105(b)(3), a country on which controls
are imposed under section 106, and, for purposes of
requiring licenses under section 111(a)(1)(B), a
country 
of 
concern 
(as 
defined 
in 
section
111(a)(1)(C)).
215
(B) The term ‘‘controlled end use’’ means an
end use identified under section 105(b)(3) and an
end use for which exports are controlled under sec-
tion 106.
(C) The term ‘‘controlled end user’’ means an
end user identified under section 105(b)(3) and an
end user to which exports are controlled under sec-
tion 106.
(8) COOPERATING
COUNTRY.—The term ‘‘co-
operating country’’ means a country that, pursuant
to an agreement or other arrangement with the
United States or an export control regime, controls
exports of items that are consistent with the criteria
and standards of that export control regime.
(9) END USE AND END USER.—(A) The term
‘‘end use’’ means the intended application or use of
an item as represented by an export license appli-
cant.
(B) The term ‘‘end user’’ means the person lo-
cated abroad who is the true party in interest in ac-
tually receiving an export for the end use designated
for the export.
(10) EXPORT.—The term ‘‘export’’—
(A) means—
216
(i) an actual shipment, transfer, or
transmission of items out of the United
States; and
(ii) a transfer to any person of items
either within the United States or outside
of the United States with the knowledge or
intent that the items will be shipped out-
side the United States, transferred, or
transmitted to an unauthorized end user,
end use, or destination;
(B) includes the transfer of the registra-
tion of a satellite or operational control of a
satellite from a party resident in the United
States to a party resident in another country;
and
(C) includes the term ‘‘reexport’’.
(11) EXPORT
CONTROL
REGIME, MULTILAT-
ERAL
EXPORT
CONTROL
REGIME, MULTILATERAL
REGIME, AND REGIME.—The terms ‘‘export control
regime’’, ‘‘multilateral export control regime’’, ‘‘mul-
tilateral regime’’, and ‘‘regime’’ each mean a group
of two or more countries which includes the United
States and the purpose of which is to curtail, by
means of cooperative export controls, access to cer-
217
tain items by certain countries, by certain end users,
or for certain end uses.
(12) FOREIGN
AVAILABILITY, AVAILABLE
IN
FACT
TO
CONTROLLED
COUNTRIES.—The terms
‘‘foreign availability’’ and ‘‘available in fact to con-
trolled countries’’ each include production or avail-
ability of any item from any country—
(A) in which the item is not restricted for
export to any controlled country; or
(B) in which such export restrictions are
determined by the Secretary to be ineffective.
For purposes of subparagraph (B), the mere inclu-
sion of items on a list of items subject to export con-
trols imposed pursuant to a multilateral export con-
trol regime shall not alone constitute credible evi-
dence that the government of a country provides an
effective means of controlling the export of such
items to controlled countries.
(13) FOREIGN
PERSON.—The term ‘‘foreign
person’’ means—
(A) an individual who is not a United
States citizen or an alien admitted for perma-
nent residence to the United States;
(B) any corporation, partnership, business
association, society, trust, organization, or other
219
Kingdom, the Federal Republic of Germany, France,
Italy, Canada, and Japan, announced on April 16,
1987, to restrict sensitive missile-related transfers
based on the MTCR Annex, and any amendments
thereto.
(19) 
MTCR 
ANNEX.—The 
term 
‘‘MTCR
Annex’’ means the Equipment and Technology
Annex of the MTCR, and any amendments thereto.
(20) NUCLEAR EXPLOSIVE DEVICE.—The term
‘‘nuclear explosive device’’ means any device, wheth-
er assembled or disassembled, that is designed to
produce an instantaneous release of an amount of
nuclear energy from special nuclear material that is
greater than the amount of energy that would be re-
leased from the detonation of one pound of trinitro-
toluene (TNT).
(21) NUCLEAR SUPPLIERS’ GROUP.—The term
‘‘Nuclear Suppliers’ Group’’ means the multilateral
arrangement in which the United States participates
whose purpose is to restrict the transfers of items
with relevance to the nuclear fuel cycle or nuclear
explosive applications.
(22) PERSON.—The term ‘‘person’’ includes the
singular and the plural and any individual, partner-
ship, corporation, or other form of association, in-