168
(B) urges the United States Department
of State to continue to raise the issue of the
murder of John M. Alvis with the Government
of Azerbaijan and to make this issue a priority
item in relations between the Government of
the United States and the Government of Azer-
baijan.
SEC. 750. SENSE OF CONGRESS RELATING TO REMARKS BY
THE 
PRESIDENT 
OF 
SYRIA 
CONCERNING
ISRAEL.
(a) FINDINGS.—The Congress finds the following:
(1) On March 27, 2001, at the first regular
Arab summit gathering in more than 10 years,
President Bashar al-Assad used his speech to lash
out at Israel.
(2) On March 28, 2001, the New York Times
reported, ‘‘In electing Mr. Sharon to be their leader,
President Assad said, Israelis had chosen a man who
hated anything to do with Arabs and had dedicated
his career to killing them.’’.
(3) President Assad additionally said, ‘‘We say
that the head of the government is a racist, it’s a
racist government, a racist army and security force,’’
he said, adding that by extension, ‘‘It is a racist so-
ciety and it is even more racist than the Nazis.’’.
169
(4) On March 28, 2001, State Department
spokesman Richard Boucher described President
Assad’s remarks as, ‘‘absolutely wrong . . . totally un-
acceptable and inappropriate.’’.
(5) On March 29, 2001, the Bush administra-
tion’s top Middle East diplomat, Assistant Secretary
of State Edward Walker, responding to Assad’s re-
marks stated, ‘‘His statement at the Arab League
was unacceptable, particularly his reference to Zion-
ism as racism.’’.
(6) On May 5, 2001, in his welcoming speech
to Pope John Paul II, upon the Pope’s arrival in
Damascus, President Assad said, ‘‘They, Israelis, try
to kill all the principles of divine faiths with the
same mentality of betraying Jesus Christ and tor-
turing Him, and in the same way that they tried to
commit treachery against Prophet Mohammad.’’.
(7) On May 6, 2001, at the Umayyad Mosque,
Muhammad Ziyadah, Syria’s minister of religious af-
fairs, said, ‘‘We must be fully aware of what the en-
emies of God and malicious Zionism conspire to
commit against Christianity and Islam.’’.
(8) On May 7, 2001, State Department spokes-
man Richard Boucher condemned President Assad’s
remarks, ‘‘Our view is that these comments are as
170
regrettable as they are unacceptable. There’s no
place from anyone or from any side for statements
that inflame religious passions and hatred.’’.
(9) It is only through constructive diplomacy,
and not through hateful, counterproductive speech,
that peace can possibly be achieved in the Middle
East.
(b) SENSE OF CONGRESS.—The Congress—
(1) condemns Syrian President Bashar al-Assad
for his inflammatory remarks on March 27, 2001,
and May 5, 2001;
(2) expresses its solidarity with the state and
people of Israel at this time of crisis;
(3) calls upon President Assad and the Syrian
Government to refrain from any future inflam-
matory remarks;
(4) commends the Administration for its swift
response to President Assad’s remarks; and
(5) urges the Administration to emphasize to
Syrian Government officials the concerns of the
United States about the negative impact such re-
marks make on Middle East peace negotiations.
171
SEC. 751. SENSE OF CONGRESS RELATING TO ENVIRON-
MENTAL CONTAMINATION AND HEALTH EF-
FECTS 
IN 
THE 
PHILIPPINES 
EMANATING
FROM FORMER UNITED STATES MILITARY
FACILITIES.
It is the sense of the Congress that—
(1) the Secretary of State, in cooperation with
the Secretary of Defense, should continue to work
with the Government of the Philippines and with ap-
propriate non-governmental organizations in the
United States and the Philippines to fully identify
and share all relevant information concerning envi-
ronmental contamination and health effects ema-
nating from former United States military facilities
in the Philippines following departure of the United
States military forces from the Philippines in 1992;
(2) the United States and the Government of
the Philippines should continue to build upon the
agreements outlined in the Joint Statement by the
United States and the Republic of the Philippines on
a Framework for Bilateral Cooperation in the Envi-
ronment and Public Health signed on July 27, 2000;
and
(3) Congress should encourage an objective
non-governmental study which would examine envi-
ronmental contamination and health effects ema-
172
nating from former United States military facilities
in the Philippines, following departure of United
States military forces from the Philippines in 1992.
SEC. 752. SENSE OF CONGRESS REGARDING THE LOCATION
OF PEACE CORPS OFFICES ABROAD.
It is the sense of the Congress that, to the degree
permitted by security considerations, the Secretary of
State should give favorable consideration to requests by
the Director of the Peace Corps that the Secretary exer-
cise his authority under section 606(a)(2)(B) of the Se-
cure Embassy Construction and Counterterrorism Act of
1999 (22 U.S.C. 4865(a)(2)(B)) to waive certain require-
ments of that Act in order to permit the Peace Corps to
maintain offices in foreign countries at locations separate
from the United States embassy.
SEC. 753. SENSE OF CONGRESS REGARDING THE MIS-
TREATMENT OF UNITED STATES CIVILIAN
PRISONERS INCARCERATED BY THE AXIS
POWERS DURING WORLD WAR II.
(a) FINDINGS.—The Congress makes the following
findings:
(1) The Axis Powers captured and incarcerated
18,745 United States civilians who were living or
traveling abroad during World War II, of which
1,704 died or were executed in captivity.
173
(2) These civilian prisoners of war were sub-
jected to barbaric prison conditions and endured tor-
ture, starvation, and disease.
(3) The incarceration of these United States ci-
vilians and the conditions of such incarceration vio-
lated international human rights principles.
(4) The vast majority of these civilian prisoners
of war have never received any formal recognition or
compensation for their suffering, despite the physical
and emotional trauma they endured.
(5) The incarceration of United States civilians
by the Axis Powers during World War II and the
conditions of such incarceration violated inter-
national human rights principles.
(b) SENSE OF CONGRESS.—The Congress—
(1) extends its sympathies to the brave men
and women who endured the terrible hardships of
such incarceration and to their families; and
(2) encourages foreign nations that incarcerated
United States civilians during World War II to for-
mally apologize to these individuals and their fami-
lies.
174
SEC. 754. SENSE OF CONGRESS REGARDING PURCHASE OF
AMERICAN-MADE 
EQUIPMENT 
AND 
PROD-
UCTS.
In the case of any equipment or products that may
be authorized to be purchased with financial assistance
provided under this Act (including any amendment made
by this Act), it is the sense of the Congress that entities
receiving such assistance should, in expending the assist-
ance, purchase only American-made equipment and prod-
ucts.
SEC. 755. SENSE OF CONGRESS RELATING TO STATE DE-
PARTMENT TRAVEL WARNINGS FOR ISRAEL,
THE WEST BANK, AND GAZA.
It is the sense of the Congress that—
(1) the Secretary of State should, in an effort
to provide better and more accurate information to
American citizens traveling abroad, review the cur-
rent travel warning in place for Israel, the West
Bank, and Gaza, to determine which areas present
the highest threat to American citizens in the region
and which areas may be visited safely; and
(2) the Secretary of State should revise the
travel warning for Israel, the West Bank, and Gaza
as appropriate based on the above determinations.
175
TITLE VIII—SECURITY
ASSISTANCE
SEC. 801. SHORT TITLE.
This title may be cited as the ‘‘Security Assistance
Act of 2001’’.
Subtitle A—Military and Related
Assistance
CHAPTER 1—FOREIGN MILITARY SALES
AND RELATED AUTHORITIES
SEC. 811. QUARTERLY REPORT ON PRICE AND AVAIL-
ABILITY ESTIMATES.
Chapter 2 of the Arms Export Control Act (22
U.S.C. 2761 et seq.), is amended by adding at the end
the following:
‘‘SEC. 28. QUARTERLY REPORT ON PRICE AND AVAIL-
ABILITY ESTIMATES.
‘‘(a) QUARTERLY REPORT.—Not later than 15 days
after the end of each calendar quarter, the President shall
transmit to the Committee on International Relations of
the House of Representatives and the Committee on For-
eign Relations of the Senate a report that contains the
information described in subsection (b).
‘‘(b) INFORMATION.—The information described in
this subsection is the following:
176
‘‘(1)(A) Each price and availability estimate
provided by the United States Government during
such calendar quarter to a foreign country with re-
spect to a possible sale under this Act of major de-
fense articles having a cost of $7,000,000 or more,
or of any other defense articles or services having a
cost of $25,000,000 or more.
‘‘(B) The name of each foreign country to
which an estimate described in subparagraph (A)
was provided, the defense articles or services in-
volved, the quantity of the articles or services in-
volved, and the price estimate.
‘‘(2)(A) Each request received by the United
States Government from a foreign country during
such calendar quarter for the issuance of a letter of
offer to sell defense articles or defense services if the
proposed sale does not include a price and avail-
ability estimate (as described in paragraph (1)(A)).
‘‘(B) The name of each foreign country that
makes a request described in subparagraph (A), the
date of the request, the defense articles or services
involved, the quantity of the articles or services in-
volved, and the price and availability terms re-
quested.’’.
177
SEC. 812. OFFICIAL RECEPTION AND REPRESENTATION EX-
PENSES.
Section 43(c) of the Arms Export Control Act (22
U.S.C. 2792(c)), is amended by striking ‘‘$72,500’’ and
inserting ‘‘$86,500’’.
SEC. 813. TREATMENT OF TAIWAN RELATING TO TRANS-
FERS OF DEFENSE ARTICLES AND SERVICES.
Notwithstanding any other provision of law, for pur-
poses of the transfer or potential transfer of defense arti-
cles or defense services under the Arms Export Control
Act (22 U.S.C. 2751 et seq.), the Foreign Assistance Act
of 1961 (22 U.S.C. 2151 et seq.), or any other provision
of law, Taiwan shall be treated as the equivalent of a
major non-NATO ally.
SEC. 814. UNITED STATES POLICY WITH REGARD TO TAI-
WAN.
(a) CONSULTATION WITH CONGRESS.—Not later
than 30 days prior to consultations with Taiwan described
in subsection (b), the President shall consult, on a classi-
fied basis, with Congress regarding the following matters
with respect to the availability of defense articles and serv-
ices for Taiwan:
(1) The request by Taiwan to the United States
for the purchase of defense articles and defense serv-
ices.
178
(2) The President’s assessment of the legiti-
mate defense needs of Taiwan taking into account
Taiwan’s request described in paragraph (1).
(3) The decisionmaking process used by the
President to consider such request.
(b) CONSULTATION WITH TAIWAN.—At least once
every calendar year, the President, or the President’s des-
ignee, shall consult with representatives of the armed
forces of Taiwan, at not less than the level of Vice Chief
of the General Staff, concerning the nature and quantity
of defense articles and services to be made available to
Taiwan in accordance with section 3(b) of the Taiwan Re-
lations Act (22 U.S.C. 3302(b)). Such consultations shall
take place in Washington, D.C.
CHAPTER 2—EXCESS DEFENSE ARTICLE
AND DRAWDOWN AUTHORITIES
SEC. 821. EXCESS DEFENSE ARTICLES FOR CERTAIN EURO-
PEAN AND OTHER COUNTRIES.
(a) CENTRAL
AND SOUTHERN EUROPEAN COUN-
TRIES.—Section 105 of Public Law 104–164 (110 Stat.
1427) is amended by striking ‘‘2000 and 2001’’ and in-
serting ‘‘2001, 2002, and 2003’’.
(b) CERTAIN OTHER COUNTRIES.—Notwithstanding
section 516(e) of the Foreign Assistance Act of 1961 (22
U.S.C. 2321j(e)), during each of the fiscal years 2002 and
179
2003, funds available to the Department of Defense may
be expended for crating, packing, handling, and transpor-
tation of excess defense articles transferred under the au-
thority of section 516 of such Act to Albania, Bulgaria,
Croatia, Estonia, the Former Yugoslavia Republic of Mac-
edonia, Georgia, Kyrgyzstan, Latvia, Lithuania, Mongolia,
the Philippines, Slovakia, and Uzbekistan.
(c) CONTENT OF CONGRESSIONAL NOTIFICATION.—
Each notification required to be submitted under section
516(f) of the Foreign Assistance Act of 1961 (22 U.S.C.
2321j(f)) with respect to a proposed transfer of a defense
article described in subsection (b) shall include an esti-
mate of the amount of funds to be expended under such
subsection with respect to that transfer.
SEC. 822. LEASES OF DEFENSE ARTICLES FOR FOREIGN
COUNTRIES AND INTERNATIONAL ORGANIZA-
TIONS.
Section 61(b) of the Arms Export Control Act (22
U.S.C. 2796(b)), is amended—
(1) by striking ‘‘(b) Each lease agreement’’ and
inserting ‘‘(b)(1) Each lease agreement’’; and
(2) by striking ‘‘of not to exceed five years’’
and inserting ‘‘which may not exceed (A) five years,
and (B) a specified period of time required to com-
plete major refurbishment work of the leased articles
180
to be performed prior to the delivery of the leased
articles,’’; and
(3) by adding at the end the following:
‘‘(2) In this subsection, the term ‘major refurbish-
ment work’ means work for which the period of perform-
ance is 6 months or more.’’.
SEC. 823. PRIORITY WITH RESPECT TO TRANSFER OF EX-
CESS DEFENSE ARTICLES.
Section 516(c)(2) of the Foreign Assistance Act of
1961 (22 U.S.C. 2321j(c)(2)), is amended by striking
‘‘and to major non-NATO allies on such southern and
southeastern flank’’ and inserting ‘‘, to major non-NATO
allies on such southern and southeastern flank, and to the
Philippines’’.
CHAPTER 3—NONPROLIFERATION AND
EXPORT CONTROL ASSISTANCE
SEC. 831. INTERNATIONAL COUNTERPROLIFERATION EDU-
CATION AND TRAINING.
Chapter 9 of part II of the Foreign Assistance Act
of 1961 (22 U.S.C. 2349bb et seq.), is amended—
(1) by redesignating sections 584 and 585 as
sections 585 and 586, respectively; and
(2) by inserting after section 583 the following:
181
‘‘SEC. 
584. 
INTERNATIONAL 
COUNTER-PROLIFERATION
EDUCATION AND TRAINING.
‘‘(a) GENERAL AUTHORITY.—The President is au-
thorized to furnish, on such terms and conditions con-
sistent with this chapter (but whenever feasible on a reim-
bursable basis), education and training to foreign govern-
mental and military personnel for the purpose of enhanc-
ing the nonproliferation and export control capabilities of
such personnel through their attendance in special courses
of instruction in the United States.
‘‘(b) ADMINISTRATION OF COURSES.—The Secretary
of State shall have overall responsibility for the develop-
ment and conduct of international nonproliferation edu-
cation and training programs, but may rely upon any of
the following agencies to recommend personnel for the
education and training, and to administer specific courses
of instruction:
‘‘(1) The Department of Defense (including na-
tional weapons laboratories under contract with the
Department).
‘‘(2) The Department of Energy (including na-
tional weapons laboratories under contract with the
Department).
‘‘(3) The Department of Commerce.
182
‘‘(4) The intelligence community (as defined in
section 3(4) of the National Security Act of 1947
(50 U.S.C. 401a(4))).
‘‘(5) The United States Customs Service.
‘‘(6) The Federal Bureau of Investigation.
‘‘(c) PURPOSES.—Education and training activities
conducted under this section shall be—
‘‘(1) of a technical nature, emphasizing tech-
niques for detecting, deterring, monitoring, inter-
dicting, and countering proliferation;
‘‘(2) designed to encourage effective and mutu-
ally beneficial relations and increased understanding
between the United States and friendly countries;
and
‘‘(3) designed to improve the ability of friendly
countries to utilize their resources, including defense
articles and defense services obtained by them from
the United States, with maximum effectiveness,
thereby contributing to greater self-reliance by such
countries.’’.
SEC. 832. ANNUAL REPORT ON THE PROLIFERATION OF
MISSILES AND ESSENTIAL COMPONENTS OF
NUCLEAR, 
BIOLOGICAL, 
AND 
CHEMICAL
WEAPONS.
(a) REPORT.—
183
(1) IN GENERAL.—The President shall transmit
to the designated congressional committees an an-
nual report on the transfer by any country of weap-
ons, technology, components, or materials that can
be used to deliver, manufacture (including research
and experimentation), or weaponize nuclear, biologi-
cal, or chemical weapons (hereinafter in this section
referred to as ‘‘NBC weapons’’) to any country other
than a country referred to in subsection (c) that is
seeking to possess or otherwise acquire such weap-
ons, technology, or materials, or other system that
the Secretary of State or Secretary of Defense has
reason to believe could be used to develop, acquire,
or deliver NBC weapons.
(2) DEADLINE FOR INITIAL REPORT.—The first
such report shall be submitted not later than 90
days after the date of the enactment of this Act and
on April 1 of each year thereafter.
(b) MATTERS TO BE INCLUDED.—Each such report
shall include, but not be limited to—
(1) the transfer of all aircraft, cruise missiles,
artillery weapons, unguided rockets and multiple
rocket systems, and related bombs, shells, warheads
and other weaponization technology and materials
that the Secretary of State or the Secretary of De-
184
fense has reason to believe may be intended for the
delivery of NBC weapons;
(2) international transfers of MTCR equipment
or technology to any country that is seeking to ac-
quire such equipment or any other system that the
Secretary of State or the Secretary of Defense has
reason to believe may be used to deliver NBC weap-
ons; and
(3) the transfer of technology, test equipment,
radioactive materials, feedstocks and cultures, and
all other specialized materials that the Secretary of
State or the Secretary of Defense has reason to be-
lieve could be used to manufacture NBC weapons.
(c) CONTENT OF REPORT.—Each such report shall
include the following with respect to preceding calendar
year:
(1) The status of missile, aircraft, and other
NBC weapons delivery and weaponization programs
in any such country, including efforts by such coun-
try or by any subnational group to acquire MTCR-
controlled equipment, NBC-capable aircraft, or any
other weapon or major weapon component which
may be utilized in the delivery of NBC weapons,
whose primary use is the delivery of NBC weapons,
or that the Secretary of State or the Secretary of
185
Defense has reason to believe could be used to de-
liver NBC weapons.
(2) The status of NBC weapons development,
acquisition, manufacture, stockpiling, and deploy-
ment programs in any such country, including ef-
forts by such country or by any subnational group
to acquire essential test equipment, manufacturing
equipment and technology, weaponization equipment
and technology, and radioactive material, feedstocks
or components of feedstocks, and biological cultures
and toxins.
(3) A description of assistance provided by any
person or government, after the date of the enact-
ment of this Act, to any such country or subnational
group in the acquisition or development of—
(A) NBC weapons;
(B) missile systems, as defined in the
MTCR or that the Secretary of State or the
Secretary of Defense has reason to believe may
be used to deliver NBC weapons; and
(C) aircraft and other delivery systems and
weapons that the Secretary of State or the Sec-
retary of Defense has reason to believe could be
used to deliver NBC weapons.
186
(4) A listing of those persons and countries
which continue to provide such equipment or tech-
nology described in paragraph (3) to any country or
subnational group as of the date of submission of
the report, including the extent to which foreign per-
sons and countries were found to have knowingly
and materially assisted such programs.
(5) A description of the use of, or substantial
preparations to use, the equipment of technology de-
scribed in paragraph (3) by any foreign country or
subnational group.
(6) A description of the diplomatic measures
that the United States, and that other adherents to
the MTCR and other arrangements affecting the ac-
quisition and delivery of NBC weapons, have made
with respect to activities and private persons and
governments suspected of violating the MTCR and
such other arrangements.
(7) An analysis of the effectiveness of the regu-
latory and enforcement regimes of the United States
and other countries that adhere to the MTCR and
other arrangements affecting the acquisition and de-
livery of NBC weapons in controlling the export of
MTCR and other NBC weapons and delivery system
equipment or technology.
187
(8) A summary of advisory opinions issued
under section 11B(b)(4) of the Export Administra-
tion Act of 1979 (50 U.S.C. App. 2401b(b)(4)) and
under section 73(d) of the Arms Export Control Act
(22 U.S.C. 2797b(d)).
(9) An explanation of United States policy re-
garding the transfer of MTCR equipment or tech-
nology to foreign missile programs, including pro-
grams involving launches of space vehicles.
(10) A description of each transfer by any per-
son or government during the preceding 12-month
period which is subject to sanctions under the Iran-
Iraq Arms Non-Proliferation Act of 1992 (title XVI
of Public Law 102–484).
(d) EXCLUSIONS.—The countries excluded under
subsection (a) are Australia, Belgium, Canada, the Czech
Republic, Denmark, France, Germany, Greece, Hungary,
Iceland, Italy, Japan, Luxembourg, the Netherlands, Nor-
way, Poland, Portugal, Spain, Turkey, the United King-
dom, and the United States.
(e) CLASSIFICATION OF REPORT.—The Secretary of
State shall make every effort to submit all of the informa-
tion required by this section in unclassified form. When-
ever the Secretary submits any such information in classi-
fied form, the Secretary shall submit such classified infor-
188
mation in an addendum and shall also submit concurrently
a detailed summary, in unclassified form, of that classified
information.
(f) DEFINITIONS.—In this section:
(1) DESIGNATED
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘designated congressional commit-
tees’’ means—
(A) the Committee on Appropriations, the
Committee on Armed Services, and the Com-
mittee on International Relations of the House
of Representatives; and
(B) the Committees on Appropriations, the
Committee on Armed Services, and the Com-
mittee on Foreign Relations of the Senate.
(2) MISSILE; MTCR; MTCR
EQUIPMENT
OR
TECHNOLOGY.—The terms ‘‘missile’’, ‘‘MTCR’’, and
‘‘MTCR equipment or technology’’ have the mean-
ings given those terms in section 74 of the Arms Ex-
port Control Act (22 U.S.C. 2797c).
(3) PERSON.—The term ‘‘person’’ means any
United States or foreign individual, partnership, cor-
poration, or other form of association, or any of its
successor entities, parents, or subsidiaries.
(4) WEAPONIZE; WEAPONIZATION.—The term
‘‘weaponize’’ or ‘‘weaponization’’ means to incor-
189
porate into, or the incorporation into, usable ord-
nance or other militarily useful means of delivery.
(g) REPEALS.—
(1) IN GENERAL.—The following provisions of
law are repealed:
(A) Section 1097 of the National Defense
Authorization Act for Fiscal Years 1992 and
1993 (22 U.S.C. 2751 note).
(B) Section 308 of the Chemical and Bio-
logical Weapons Control and Warfare Elimi-
nation Act of 1991 (22 U.S.C. 5606).
(C) Section 1607(a) of the Iran-Iraq Arms
Non-Proliferation Act of 1992 (Public Law
102–484).
(D) Paragraph (d) of section 585 of the
Foreign Operations, Export Financing, and Re-
lated Programs Appropriations Act, 1997 (as
contained in section 101(c) of title I of division
A of Public Law 104–208).
(2) CONFORMING AMENDMENTS.—Section 585
of the Foreign Operations, Export Financing, and
Related Programs Appropriations Act, 1997, is
amended—
(A) in paragraph (b), by adding ‘‘and’’ at
the end; and
190
(B) in paragraph (c), by striking ‘‘; and’’
and inserting a period.
SEC. 833. FIVE-YEAR INTERNATIONAL ARMS CONTROL AND
NONPROLIFERATION STRATEGY.
Not later than 180 days after the date of the enact-
ment of this Act, the Secretary of State shall prepare and
submit to the appropriate congressional committees a 5-
year international arms control and nonproliferation strat-
egy. The strategy shall contain the following:
(1) A 5-year plan for the reduction of existing
nuclear, chemical, and biological weapons and bal-
listic missiles and for controlling the proliferation of
these weapons.
(2) Identification of the goals and objectives of
the United States with respect to arms control and
nonproliferation of weapons of mass destruction and
their delivery systems.
(3) A description of the programs, projects, and
activities of the Department of State intended to ac-
complish goals and objectives described in paragraph
(2).
191
Subtitle B—Strengthening the
Munitions Licensing Process
SEC. 841. LICENSE OFFICER STAFFING.
(a) FUNDING.—Of the amounts authorized to be ap-
propriated under the appropriations account entitled
‘‘DIPLOMATIC AND CONSULAR PROGRAMS’’ for fiscal years
2002 and 2003, not less than $10,000,000 shall be made
available each such fiscal year for the Office of Defense
Trade Controls of the Department of State for salaries
and expenses.
(b) ASSIGNMENT OF LICENSE REVIEW OFFICERS.—
Effective January 1, 2002, the Secretary of State shall
assign to the Office of Defense Trade Controls of the De-
partment of State a sufficient number of license review
officers to ensure that the average weekly caseload for
each officer does not exceed 40.
(c) DETAILEES.—Given the priority placed on expe-
dited license reviews in recent years by the Department
of Defense, the Secretary of Defense should ensure that
10 military officers are continuously detailed to the Office
of Defense Trade Controls of the Department of State on
a nonreimbursable basis.
SEC. 842. FUNDING FOR DATABASE AUTOMATION.
Of the amounts authorized to be appropriated under
the appropriations account entitled ‘‘CAPITAL INVEST-
193
(C) the Proliferation Information Network
System of the Department of Energy.
(c) MUNITIONS LIST DEFINED.—In this section, the
term ‘‘Munitions List’’ means the United States Muni-
tions List of defense articles and defense services con-
trolled under section 38 of the Arms Export Control Act
(22 U.S.C. 2778).
SEC. 844. IMPROVEMENTS TO THE AUTOMATED EXPORT
SYSTEM.
(a) MANDATORY FILING.—The Secretary of Com-
merce, with the concurrence of the Secretary of State and
the Secretary of the Treasury, shall publish regulations
in the Federal Register to require, upon the effective date
of those regulations, the mandatory filing through the
Automated Export System for the remainder of exports
that were not covered by regulations issued pursuant to
section 1252(b) of the Security Assistance Act of 1999
(113 Stat. 1501A–506), as enacted into law by section
1000(a)(7) of Public Law 106–113.
(b) REQUIREMENT FOR INFORMATION SHARING.—
The Secretary of State shall conclude an information shar-
ing arrangement with the heads of United States Customs
Service and the Census Bureau to adjust the Automated
Export System to parallel information currently collected
by the Department of State.
194
(c) SECRETARY OF TREASURY FUNCTIONS.—Section
303 of title 13, United States Code, is amended by strik-
ing ‘‘, other than by mail,’’.
(d) FILING EXPORT INFORMATION, DELAYED FIL-
INGS, PENALTIES FOR FAILURE TO FILE.—Section 304
of title 13, United States Code, is amended—
(1) in subsection (a)—
(A) in the first sentence, by striking ‘‘the
penal sum of $1,000’’ and inserting ‘‘a penal
sum of $10,000’’; and
(B) in the third sentence, by striking ‘‘a
penalty not to exceed $100 for each day’s delin-
quency beyond the prescribed period, but not
more than $1,000, shall be exacted’’ and insert-
ing ‘‘the Secretary of Commerce (and officers
and employees of the Department of Commerce
designated by the Secretary) may impose a civil
penalty not to exceed $1,000 for each day’s de-
linquency beyond the prescribed period, but not
more than $10,000 per violation’’;
(2) by redesignating subsection (b) as sub-
section (c); and
(3) by inserting after subsection (a) the fol-
lowing:
195
‘‘(b) Any person, other that a person described in
subsection (a), required to submit export information,
shall file such information in accordance with any rule,
regulation, or order issued pursuant to this chapter. In
the event any such information or reports are not filed
within such prescribed period, the Secretary of Commerce
(and officers and employees of the Department of Com-
merce designated by the Secretary) may impose a civil
penalty not to exceed $1,000 for each day’s delinquency
beyond the prescribed period, but not more than $10,000
per violation.’’.
(e) ADDITIONAL PENALTIES.—
(1) IN
GENERAL.—Section 305 of title 13,
United States Code, is amended to read as follows:
‘‘§ 305. Penalties for unlawful export information ac-
tivities
‘‘(a) CRIMINAL PENALTIES.—(1) Any person who
knowingly fails to file or knowingly submits false or mis-
leading export information through the Shippers Export
Declaration (SED) (or any successor document) or the
Automated Export System (AES) shall be subject to a fine
not to exceed $10,000 per violation or imprisonment for
not more than 5 years, or both.
‘‘(2) Any person who knowingly reports any informa-
tion on or uses the SED or the AES to further any illegal
196
activity shall be subject to a fine not to exceed $10,000
per violation or imprisonment for not more than 5 years,
or both.
‘‘(3) Any person who is convicted under this sub-
section 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 goods 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 constituting,
or derived from, any proceeds obtained directly or
indirectly as a result of the violation.
‘‘(b) CIVIL PENALTIES.—The Secretary (and officers
and employees of the Department of Commerce specifi-
cally designated by the Secretary) may impose a civil pen-
alty not to exceed $10,000 per violation on any person
violating the provisions of this chapter or any rule, regula-
tion, or order issued thereunder, except as provided in sec-
197
tion 304. Such penalty may be in addition to any other
penalty imposed by law.
‘‘(c) CIVIL PENALTY PROCEDURE.—(1) When a civil
penalty is sought for a violation of this section or of sec-
tion 304, the charged party is entitled to receive a formal
complaint specifying the charges and, at his or her re-
quest, to contest the charges in a hearing before an admin-
istrative law judge. Any such hearing shall be conducted
in accordance with sections 556 and 557 of title 5, United
States Code.
‘‘(2) If any person fails to pay a civil penalty imposed
under this chapter, the Secretary may ask the Attorney
General to commence a civil action in an appropriate dis-
trict court of the United States to recover the amount im-
posed (plus interest at currently prevailing rates from the
date of the final order). No such action may be com-
menced more than 5 years after the order imposing the
civil penalty becomes final. In such action, the validity,
amount, and appropriateness of such penalty shall not be
subject to review.
‘‘(3) The Secretary may remit or mitigate any pen-
alties imposed under paragraph (1) if, in his or her
opinion—
‘‘(A) the penalties were incurred without willful
negligence or fraud; or
198
‘‘(B) other circumstances exist that justify a re-
mission or mitigation.
‘‘(4) If, pursuant to section 306, the Secretary dele-
gates functions under this section to another agency, the
provisions of law of that agency relating to penalty assess-
ment, remission or mitigation of such penalties, collection
of such penalties, and limitations of actions and com-
promise of claims, shall apply.
‘‘(5) Any amount paid in satisfaction of a civil pen-
alty imposed under this section or section 304 shall be
deposited into the general fund of the Treasury and cred-
ited as miscellaneous receipts.
‘‘(d) ENFORCEMENT.—(1) The Secretary of Com-
merce may designate officers or employees of the Office
of Export Enforcement to conduct investigations pursuant
to this chapter. In conducting such investigations, those
officers or employees may, to the extent necessary or ap-
propriate to the enforcement of this chapter, exercise such
authorities as are conferred upon them by other laws of
the United States, subject to policies and procedures ap-
proved by the Attorney General.
‘‘(2) The Commissioner of Customs may designate of-
ficers or employees of the Customs Service to enforce the
provisions of this chapter, or to conduct investigations
pursuant to this chapter.