134
(iii) routine services and maintenance
of products, to the extent that alternative
sources are not readily or reasonably avail-
able, or
(iv) information and technology essen-
tial to United States products or produc-
tion.
(c) DEFINITIONS.—In this section:
(1) MISSILE.—The term ‘‘missile’’ means a cat-
egory I system as defined in the MTCR Annex, and
any other unmanned delivery system of similar capa-
bility, as well as the specially designed production fa-
cilities for these systems.
(2) MISSILE
TECHNOLOGY
CONTROL
REGIME;
MTCR.—The term ‘‘Missile Technology Control Re-
gime’’ or ‘‘MTCR’’ means the policy statement, be-
tween the United States, the United Kingdom, the
Federal Republic of Germany, France, Italy, Canada,
and Japan, announced on April 16, 1987, to restrict
sensitive missile-relevant transfers based on the
MTCR Annex, and any amendments thereto.
(3) MTCR ADHERENT.—The term ‘‘MTCR ad-
herent’’ means a country that participates in the
MTCR or that, pursuant to an international under-
standing to which the United States is a party, con-
135
trols MTCR equipment or technology in accordance
with the criteria and standards set forth in the
MTCR.
(4) MTCR ANNEX.—The term ‘‘MTCR Annex’’
means the Guidelines and Equipment and Technology
Annex of the MTCR, and any amendments thereto.
(5) MISSILE EQUIPMENT OR TECHNOLOGY; MTCR
EQUIPMENT
OR
TECHNOLOGY.—The terms ‘‘missile
equipment or technology’’ and ‘‘MTCR equipment or
technology’’ mean those items listed in category I or
category II of the MTCR Annex.
(6) FOREIGN PERSON.—The term ‘‘foreign per-
son’’ means any person other than a United States
person.
(7) PERSON.—
(A) IN
GENERAL.—The term ‘‘person’’
means a natural person as well as a corporation,
business association, partnership, society, trust,
any other nongovernmental entity, organization,
or group, and any governmental entity operating
as a business enterprise, and any successor of
any such entity.
(B) IDENTIFICATION IN CERTAIN CASES.—
In the case of countries where it may be impos-
sible to identify a specific governmental entity
136
referred to in subparagraph (A), the term ‘‘per-
son’’ 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.
(8) OTHERWISE ENGAGED IN THE TRADE OF.—
The term ‘‘otherwise engaged in the trade of’’ means,
with respect to a particular export or transfer, to be
a freight forwarder or designated exporting agent, or
a consignee or end user of the item to be exported or
transferred.
SEC. 505. CHEMICAL AND BIOLOGICAL WEAPONS PRO-
LIFERATION SANCTIONS.
(a) IMPOSITION OF SANCTIONS.—
(1) DETERMINATION BY THE PRESIDENT.—Ex-
cept as provided in subsection (b)(2), the President
shall impose both of the sanctions described in sub-
section (c) if the President determines that a foreign
person, on or after the date of enactment of this sec-
tion, has knowingly and materially contributed—
137
(A) through the export from the United
States of any item that is subject to the jurisdic-
tion of the United States under this Act, or
(B) through the export from any other coun-
try of any item that would be, if it were a
United States item, subject to the jurisdiction of
the United States under this Act,
to the efforts by any foreign country, project, or entity
described in paragraph (2) to use, develop, produce,
stockpile, or otherwise acquire chemical or biological
weapons.
(2) COUNTRIES, PROJECTS, OR ENTITIES RECEIV-
ING ASSISTANCE.—Paragraph (1) applies in the case
of—
(A) any foreign country that the President
determines has, at any time after the date of en-
actment of this Act—
(i) used chemical or biological weapons
in violation of international law;
(ii) used lethal chemical or biological
weapons against its own nationals; or
(iii) made substantial preparations to
engage in the activities described in clause
(i) or (ii);
138
(B) any foreign country whose government
is determined for purposes of section 310 to be
a government that has repeatedly provided sup-
port for acts of international terrorism; or
(C) any other foreign country, project, or
entity designated by the President for purposes
of this section.
(3) PERSONS AGAINST WHICH SANCTIONS ARE TO
BE IMPOSED.—Sanctions shall be imposed pursuant
to paragraph (1) on—
(A) the foreign person with respect to which
the President makes the determination described
in that paragraph;
(B) any successor entity to that foreign per-
son;
(C) any foreign person that is a parent or
subsidiary of that foreign person if that parent
or subsidiary knowingly assisted in the activities
which were the basis of that determination; and
(D) any foreign person that is an affiliate
of that foreign person if that affiliate knowingly
assisted in the activities which were the basis of
that determination and if that affiliate is con-
trolled in fact by that foreign person.
139
(b) CONSULTATIONS WITH AND ACTIONS BY FOREIGN
GOVERNMENT OF JURISDICTION.—
(1) CONSULTATIONS.—If the President makes the
determinations described in subsection (a)(1) with re-
spect to a foreign person, Congress urges the President
to initiate consultations immediately with the govern-
ment with primary jurisdiction over that foreign per-
son with respect to the imposition of sanctions pursu-
ant to this section.
(2) ACTIONS
BY
GOVERNMENT
OF
JURISDIC-
TION.—In order to pursue such consultations with
that government, the President may delay imposition
of sanctions pursuant to this section for a period of
up to 90 days. Following the consultations, the Presi-
dent shall impose sanctions unless the President deter-
mines and certifies to Congress that government has
taken specific and effective actions, including appro-
priate penalties, to terminate the involvement of the
foreign person in the activities described in subsection
(a)(1). The President may delay imposition of sanc-
tions for an additional period of up to 90 days if the
President determines and certifies to Congress that
government is in the process of taking the actions de-
scribed in the preceding sentence.
141
(A) in the case of procurement of defense ar-
ticles or defense services—
(i) under existing contracts or sub-
contracts, including the exercise of options
for production quantities to satisfy United
States operational military requirements;
(ii) if the President determines that the
person or other entity to which the sanc-
tions would otherwise be applied is a sole
source supplier of the defense articles or
services, that the defense 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 essential to the
national security under defense coproduc-
tion agreements;
(B) to products or services provided under
contracts entered into before the date on which
the President publishes his intention to impose
sanctions;
(C) to—
(i) spare parts,
142
(ii) component parts, but not finished
products, essential to United States prod-
ucts or production, or
(iii) routine servicing and mainte-
nance of products, to the extent that alter-
native sources are not readily or reasonably
available;
(D) to information and technology essential
to United States products or production; or
(E) to medical or other humanitarian
items.
(d) TERMINATION OF SANCTIONS.—The sanctions im-
posed pursuant to this section 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 deter-
mines and certifies to the Congress that reliable information
indicates that the foreign person with respect to which the
determination was made under subsection (a)(1) has ceased
to aid or abet any foreign government, project, or entity
in its efforts to acquire chemical or biological weapons ca-
pability as described in that subsection.
(e) WAIVER.—
(1) CRITERION
FOR
WAIVER.—The President
may waive the application of any sanction imposed
on any person pursuant to this section, after the end
143
of the 12-month period beginning on the date on
which that sanction was imposed on that person, if
the President determines and certifies to Congress
that such waiver is important to the national security
interests of the United States.
(2) NOTIFICATION
OF
AND
REPORT
TO
CON-
GRESS.—If the President decides to exercise the waiv-
er authority provided in paragraph (1), the President
shall so notify the Congress not less than 20 days be-
fore the waiver takes effect. Such notification shall in-
clude a report fully articulating the rationale and
circumstances which led the President to exercise the
waiver authority.
(f) DEFINITION OF FOREIGN PERSON.—For the pur-
poses of this section, the term ‘‘foreign person’’ means—
(1) an individual who is not a citizen of the
United States or an alien admitted for permanent
residence to the United States; or
(2) a corporation, partnership, or other entity
which is created or organized under the laws of a for-
eign country or which has its principal place of busi-
ness outside the United States.
SEC. 506. ENFORCEMENT.
(a) GENERAL AUTHORITY AND DESIGNATION.—
144
(1) POLICY GUIDANCE ON ENFORCEMENT.—The
Secretary, in consultation with the Secretary of the
Treasury and the heads of other departments and
agencies that the Secretary considers appropriate,
shall be responsible for providing policy guidance on
the enforcement of this Act.
(2) GENERAL AUTHORITIES.—
(A) EXERCISE OF AUTHORITY.—To the ex-
tent necessary or appropriate to the enforcement
of this Act, officers and employees of the Depart-
ment designated by the Secretary, officers and
employees of the United States Customs Service
designated by the Commissioner of Customs, and
officers and employees of any other department
or agency designated by the head of a depart-
ment or agency exercising functions under this
Act, may exercise the enforcement authority
under paragraph (3).
(B) CUSTOMS
SERVICE.—In carrying out
enforcement authority under paragraph (3), the
Commissioner of Customs and employees of the
United States Customs Service designated by the
Commissioner may make investigations within
or outside the United States and at ports of
entry into or exit from the United States where
145
officers of the United States Customs Service are
authorized by law to carry out law enforcement
responsibilities. Subject to paragraph (3), the
United States Customs Service is authorized, in
the enforcement of this Act, to search, detain
(after search), and seize items at the ports of
entry into or exit from the United States where
officers of the United States Customs Service are
authorized by law to conduct searches, deten-
tions, and seizures, and at the places outside the
United States where the United States Customs
Service, pursuant to agreement or other arrange-
ment with other countries, is authorized to per-
form enforcement activities.
(C) OTHER EMPLOYEES.—In carrying out
enforcement authority under paragraph (3), the
Secretary and officers and employees of the De-
partment designated by the Secretary may make
investigations within the United States, and
may conduct, outside the United States, pre-li-
cense and post-shipment verifications of con-
trolled items and investigations in the enforce-
ment of section 502. The Secretary and officers
and employees of the Department designated by
the Secretary are authorized to search, detain
146
(after search), and seize items at places within
the United States other than ports referred to in
subparagraph (B). The search, detention (after
search), or seizure of items at the ports and
places referred to in subparagraph (B) may be
conducted by officers and employees of the De-
partment only with the concurrence of the Com-
missioner of Customs or a person designated by
the Commissioner.
(D) AGREEMENTS AND ARRANGEMENTS.—
The Secretary and the Commissioner of Customs
may enter into agreements and arrangements for
the enforcement of this Act, including foreign in-
vestigations and information exchange.
(3) SPECIFIC AUTHORITIES.—
(A) ACTIONS
BY
ANY
DESIGNATED
PER-
SONNEL.—Any officer or employee designated
under paragraph (2), in carrying out the en-
forcement authority under this Act, may do the
following:
(i) Make investigations of, obtain in-
formation from, make inspection of any
books, records, or reports (including any
writings required to be kept by the Sec-
147
retary), premises, or property of, and take
the sworn testimony of, any person.
(ii) Administer oaths or affirmations,
and by subpoena require any person to ap-
pear and testify or to appear and produce
books, records, and other writings, or both.
In the case of contumacy by, or refusal to
obey a subpoena issued to, any such person,
a district court of the United States, on re-
quest of the Attorney General and after no-
tice to any such person and a hearing, shall
have jurisdiction to issue an order requiring
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 pun-
ished by such court as a contempt thereof.
The attendance of witnesses and the produc-
tion 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 al-
148
lowance as paid witnesses in the district
courts of the United States.
(B) ACTIONS BY OFFICE OF EXPORT EN-
FORCEMENT
AND
CUSTOMS
SERVICE
PER-
SONNEL.—
(i) OFFICE OF EXPORT ENFORCEMENT
AND CUSTOMS SERVICE PERSONNEL.—Any
officer or employee of the Office of Export
Enforcement of the Department of Com-
merce (in this Act referred to as ‘‘OEE’’)
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 Commissioner of Customs
under paragraph (2), may do the following
in carrying out the enforcement authority
under this Act:
(I) Execute any warrant or other
process issued by a court or officer of
competent jurisdiction with respect to
the enforcement of this Act.
(II) Make arrests without warrant
for any violation of this Act committed
in his or her presence or view, or if the
officer or employee has probable cause
149
to believe that the person to be arrested
has committed, is committing, or is
about to commit such a violation.
(III) Carry firearms.
(ii) OEE PERSONNEL.—Any officer or
employee of the OEE designated by the Sec-
retary under paragraph (2) shall exercise
the authority set forth in clause (i) pursu-
ant to guidelines approved by the Attorney
General.
(C) OTHER ACTIONS BY CUSTOMS SERVICE
PERSONNEL.—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 enforce-
ment authority under this Act:
(i) Stop, search, and examine a vehi-
cle, vessel, aircraft, or person on which or
whom the officer or employee has reasonable
cause to suspect there is any item that has
been, is being, or is about to be exported
from or transited through the United States
in violation of this Act.
(ii) Detain and search any package or
container in which the officer or employee
150
has reasonable cause to suspect there is any
item that has been, is being, or is about to
be exported from or transited through the
United States in violation of this Act.
(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, vessel, aircraft, or person or in
such package or container, if the officer or
employee has probable cause to believe the
item has been, is being, or is about to be ex-
ported from or transited through the United
States in violation of this Act.
(4) OTHER AUTHORITIES NOT AFFECTED.—The
authorities conferred by this section are in addition
to any authorities conferred under other laws.
(b) FORFEITURE.—
(1) IN GENERAL.—Any tangible items lawfully
seized under subsection (a) by designated officers or
employees shall be subject to forfeiture to the United
States.
(2) APPLICABLE LAWS.—Those provisions of law
relating to—
151
(A) the seizure, summary and judicial for-
feiture, and condemnation of property for viola-
tions of the customs laws;
(B) the disposition of such property or the
proceeds from the sale thereof;
(C) the remission or mitigation of such for-
feitures; and
(D) the compromise of claims,
shall apply to seizures and forfeitures incurred, or al-
leged to have been incurred, under the provisions of
this subsection, insofar as applicable and not incon-
sistent with this Act.
(3) FORFEITURES UNDER CUSTOMS LAWS.—Du-
ties that are imposed upon a customs 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 property
under this subsection by the Secretary or any officer
or employee of the Department that may be author-
ized or designated for that purpose by the Secretary
(or by the Commissioner of Customs or any officer or
employee of the United States Customs Service des-
ignated by the Commissioner), or, upon the request of
the Secretary, by any other agency that has authority
to manage and dispose of seized property.
152
(c) REFERRAL OF CASES.—All cases involving viola-
tions of this Act shall be referred to the Secretary for pur-
poses of determining civil penalties and administrative
sanctions under section 503 or to the Attorney General for
criminal action in accordance with this Act 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 OEE
that is necessary for the detection and prosecution of
violations of this Act—
(A) funds made available for export enforce-
ment under this Act may be used to purchase
property, buildings, and other facilities, and to
lease equipment, conveyances, and space within
the United States, without regard to sections
1341 and 3324 of title 31, United States Code,
the third undesignated paragraph 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), subsections (a) and (c)
of section 304 of the Federal Property and Ad-
ministrative Services Act of 1949 (41 U.S.C. 254
(a) and (c)), and section 305 of the Federal
153
Property and Administrative Services Act of
1949 (41 U.S.C. 255);
(B) funds made available for export enforce-
ment under this Act may be used to establish or
to acquire proprietary corporations or business
entities as part of an undercover operation, and
to operate such corporations or business entities
on a commercial basis, without regard to sections
1341, 3324, and 9102 of title 31, United States
Code;
(C) funds made available for export enforce-
ment under this Act 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
154
(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 has a net value
of more than $250,000 and is to be liquidated, sold,
or otherwise disposed of, the Director of OEE shall re-
port the circumstances to the Secretary and the
Comptroller General of the United States as much in
advance of such disposition as the Director of the
OEE (or the Director’s designee) determines is prac-
ticable. The proceeds of the liquidation, sale, or other
disposition, after obligations incurred by the corpora-
tion or business enterprise are met, shall be deposited
in the Treasury of the United States as miscellaneous
receipts. Any property or equipment purchased pur-
suant to paragraph (1) may be retained for subse-
quent use in undercover operations under this section.
When such property or equipment is no longer needed,
it shall be considered surplus and disposed of as sur-
plus government property.
(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
155
needed for the conduct of such operation, the proceeds
or the balance of the proceeds remaining at the time
shall be deposited into the Treasury of the United
States as miscellaneous receipts.
(4) AUDIT AND REPORT.—
(A) AUDIT.—The Director of OEE shall
conduct a detailed financial audit of each closed
OEE undercover investigative operation and
shall submit the results of the audit in writing
to the Secretary. Not later than 180 days after
an undercover operation is closed, the Secretary
shall submit to Congress a report on the results
of the audit.
(B) REPORT.—The Secretary shall submit
annually to Congress a report, which may be in-
cluded in the annual report under section 701,
specifying the following information:
(i) The number of undercover inves-
tigative operations pending as of the end of
the period for which such report is sub-
mitted.
(ii) The number of undercover inves-
tigative operations commenced in the 1-year
period preceding the period for which such
report is submitted.
156
(iii) The number of undercover inves-
tigative operations closed in the 1-year pe-
riod preceding the period for which such re-
port is submitted and, with respect to each
such closed undercover operation, the results
obtained and any civil claims made with
respect to the operation.
(5) DEFINITIONS.—For purposes of paragraph
(4)—
(A) the term ‘‘closed’’, with respect to an
undercover investigative operation, refers to the
earliest point in time at which all criminal pro-
ceedings (other than appeals) pursuant to the in-
vestigative operation are concluded, or covert ac-
tivities pursuant to such operation are con-
cluded, whichever occurs later; and
(B) the terms ‘‘undercover investigative op-
eration’’ and ‘‘undercover operation’’ mean any
undercover investigative operation conducted by
the OEE—
(i) in which the gross receipts (exclud-
ing interest earned) exceed $25,000, or ex-
penditures (other than expenditures for sal-
aries of employees) exceed $75,000, and
157
(ii) which is exempt from section 3302
or 9102 of title 31, United States Code, ex-
cept that clauses (i) and (ii) shall not apply
with respect to the report to Congress re-
quired by paragraph (4)(B).
(e) WIRETAPS.—
(1) AUTHORITY.—Interceptions of communica-
tions in accordance with section 2516 of title 18,
United States Code, are authorized to further the en-
forcement of this Act.
(2) CONFORMING AMENDMENT.—Section 2516(1)
of title 18, United States Code, is amended by adding
at the end the following:
‘‘(q) any violation of, or conspiracy to violate,
the Export Administration Act of 2001 or the Export
Administration Act of 1979.’’.
(f) POST-SHIPMENT VERIFICATIONS.—
(1) FOR CERTAIN EXPORTS AND COUNTRIES.—
The 
Secretary 
shall 
target 
post-shipment
verifications—
(A) to exports involving the greatest risk to
national security; and
(B) to those countries identified by the Di-
rector of Central Intelligence in the most recent
report that was submitted to Congress under sec-
158
tion 721 of the Intelligence Authorization Act for
Fiscal Year 1997 on the acquisition and supply
by foreign countries of dual-use items and other
technology useful for the development or produc-
tion of weapons of mass destruction.
(2) CONDUCT OF VERIFICATIONS.—The Secretary
may, with the concurrence of the Secretary of State—
(A) utilize embassy personnel to conduct
post-shipment verifications; and
(B) establish guidelines and regulations al-
lowing United States persons to conduct those
verifications.
(g) 
REFUSAL
TO
ALLOW
POST-SHIPMENT
VERIFICATION.—
(1) IN GENERAL.—If an end user refuses to allow
post-shipment verification of a controlled item, the
Secretary shall deny a license for the export of any
controlled item to such end user until such post-ship-
ment verification occurs.
(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 end user
refusing to allow post-shipment verification of a con-
trolled item.
159
(3) REFUSAL BY COUNTRY.—(A) If a country
with which the United States has entered into an
agreement providing for post-shipment verifications
repeatedly obstructs or otherwise denies the post-ship-
ment verification of controlled items, the Secretary
shall deny a license for the export of those items or
any substantially identical or directly competitive
items or class of items to all end users in that country
until such post-shipment verification is allowed.
(B) If the country in which an end user is lo-
cated refuses to allow post-shipment verification of a
controlled item, whether or not the United States has
an agreement with that country providing for post-
shipment verifications, the Secretary may deny a li-
cense for the export of that item or any substantially
identical or directly competitive item or class of items
to all end users in that country until such post-ship-
ment verification is allowed.
(h) FREIGHT FORWARDERS BEST PRACTICES PRO-
GRAM AUTHORIZATION.—There is authorized to be appro-
priated for the Department of Commerce $3,500,000 and
such sums as may be necessary to hire 20 additional em-
ployees to assist United States freight forwarders and other
interested parties in developing and implementing, on a
voluntary basis, a ‘‘best practices’’ program to ensure that
160
exports of controlled items are undertaken in compliance
with this Act.
(i) END USE VERIFICATION AUTHORIZATION.—
(1) IN GENERAL.—There is authorized to be ap-
propriated 
for 
the 
Department 
of 
Commerce
$4,500,000 and such sums as may be necessary to
hire 10 additional overseas investigators to be posted
in the People’s Republic of China, the Russian Fed-
eration, the Hong Kong Special Administrative Re-
gion, the Republic of India, Singapore, Egypt, and
Taiwan, or any other place the Secretary deems ap-
propriate, for the purpose of verifying the end use of
high-risk, dual-use technology.
(2) REPORT.—Not later than 2 years after the
date of enactment of this Act and annually thereafter,
the Department shall, in its annual report to Con-
gress on export controls, include a report on the effec-
tiveness of the end use verification activities author-
ized under subsection (a). The report shall include the
following information:
(A) The activities of the overseas investiga-
tors of the Department.
(B) The types of goods and technologies that
were subject to end use verification.
161
(C) The ability of the Department’s inves-
tigators to detect the illegal transfer of high risk,
dual-use goods and technologies.
(3) ENHANCEMENTS.—In addition to the author-
ization provided in paragraph (1), there is authorized
to be appropriated for the Department of Commerce
$5,000,000 to enhance its program for verifying the
end use of items subject to controls under this Act.
(j) ENHANCED COOPERATION WITH UNITED STATES
CUSTOMS SERVICE.—Consistent with the purposes of this
Act, the Secretary is authorized to undertake, in coopera-
tion with the United States Customs Service, such measures
as may be necessary or required to enhance the ability of
the United States to detect unlawful exports and to enforce
violations of this Act.
(k) REFERENCE TO ENFORCEMENT.—For purposes of
this section, a reference to the enforcement of this Act or
to a violation of this Act includes a reference to the enforce-
ment or a violation of any regulation, license, or order
issued under this Act.
(l) AUTHORIZATION FOR EXPORT LICENSING AND EN-
FORCEMENT COMPUTER SYSTEM.—There is authorized to
be appropriated for the Department $5,000,000 and such
other sums as may be necessary for planning, design, and
procurement of a computer system to replace the Depart-
162
ment’s primary export licensing and computer enforcement
system.
(m) AUTHORIZATION FOR BUREAU OF EXPORT AD-
MINISTRATION.—The Secretary may authorize, without fis-
cal year limitation, the expenditure of funds transferred to,
paid to, received by, or made available to the Bureau of
Export Administration as a reimbursement in accordance
with section 9703 of title 31, United States Code (as added
by Public Law 102–393). The Secretary may also authorize,
without fiscal year limitation, the expenditure of funds
transferred to, paid to, received by, or made available to
the Bureau of Export Administration as a reimbursement
from the Department of Justice Assets Forfeiture Fund in
accordance with section 524 of title 28, United States Code.
Such funds shall be deposited in an account and shall re-
main available until expended.
(n) AMENDMENTS TO TITLE 31.—
(1) Section 9703(a) of title 31, United States
Code (as added by Public Law 102–393) is amended
by striking ‘‘or the United States Coast Guard’’ and
inserting ‘‘, the United States Coast Guard, or the
Bureau of Export Administration of the Department
of Commerce’’.
163
(2) Section 9703(a)(2)(B)(i) of title 31, United
States Code is amended (as added by Public Law
102–393)—
(A) by striking ‘‘or’’ at the end of subclause
(I);
(B) by inserting ‘‘or’’ at the end of sub-
clause (II); and
(C) by inserting at the end, the following
new subclause:
‘‘(III) a violation of the Export
Administration Act of 1979, the Ex-
port Administration Act of 2001, or
any regulation, license, or order issued
under those Acts;’’.
(3) Section 9703(p)(1) of title 31, United States
Code (as added by Public Law 102–393) is amended
by adding at the end the following: ‘‘In addition, for
purposes of this section, the Bureau of Export Admin-
istration of the Department of Commerce shall be con-
sidered to be a Department of the Treasury law en-
forcement organization.’’.
(o) AUTHORIZATION
FOR LICENSE REVIEW OFFI-
CERS.—
164
(1) IN GENERAL.—There is authorized to be ap-
propriated 
to 
the 
Department 
of 
Commerce
$2,000,000 to hire additional license review officers.
(2) TRAINING.—There is authorized to be appro-
priated to the Department of Commerce $2,000,000 to
conduct professional training of license review offi-
cers, auditors, and investigators conducting post-ship-
ment verification checks. These funds shall be used
to—
(A) train and certify, through a formal pro-
gram, new employees entering these positions for
the first time; and
(B) the ongoing professional training of ex-
perienced employees on an as needed basis.
(p) AUTHORIZATION.—
(1) IN GENERAL.—There are authorized to be ap-
propriated to the Department of Commerce to carry
out the purposes of this Act—
(A) $72,000,000 for the fiscal year 2002, of
which no less than $27,701,000 shall be used for
compliance and enforcement activities;
(B) $73,000,000 for the fiscal year 2003, of
which no less than $28,312,000 shall be used for
compliance and enforcement activities;
165
(C) $74,000,000 for the fiscal year 2004, of
which no less than $28,939,000 shall be used for
compliance and enforcement activities;
(D) $76,000,000 for the fiscal year 2005, of
which no less than $29,582,000 shall be used for
compliance and enforcement activities; and
(E) such additional amounts, for each such
fiscal year, as may be necessary for increases in
salary, pay, retirement, other employee benefits
authorized by law, and other nondiscretionary
costs.
(2) TERMINATION.—The authority granted by
this Act shall terminate on December 31, 2005.
SEC. 507. ADMINISTRATIVE PROCEDURE.
(a) EXEMPTIONS
FROM
ADMINISTRATIVE
PROCE-
DURE.—Except as provided in this section, the functions
exercised under this Act are excluded from the operation
of sections 551, 553 through 559, and 701 through 706 of
title 5, United States Code.
(b) PROCEDURES RELATING TO CIVIL PENALTIES AND
SANCTIONS.—
(1) ADMINISTRATIVE
PROCEDURES.—Any ad-
ministrative sanction imposed under section 503 may
be imposed only after notice and opportunity for an
agency hearing on the record in accordance with sec-
166
tions 554 through 557 of title 5, United States Code.
The imposition of any such administrative sanction
shall be subject to judicial review in accordance with
sections 701 through 706 of title 5, United States
Code, except that the review shall be initiated in the
United States Court of Appeals for the District of Co-
lumbia Circuit, which shall have jurisdiction of the
review.
(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 502
shall be made available for public inspection and
copying.
(c) COLLECTION.—If any person fails to pay a civil
penalty imposed under section 503, the Secretary may ask
the Attorney General to commence a civil action in an ap-
propriate district court of the United States 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 appropriateness of such penalty shall not be
subject to review.
(d) IMPOSITION OF TEMPORARY DENIAL ORDERS.—
167
(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 Act, or any regulation, order, or li-
cense issued under this Act, including any diversion
of goods or technology from an authorized end use or
end user, and in any case in which a criminal indict-
ment has been returned against a person alleging a
violation of this Act or any of the statutes listed in
section 503, 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 as a ‘‘temporary denial order’’). A
temporary denial order shall be effective for such pe-
riod (not in excess of 180 days) as the Secretary
specifies in the order, but may be renewed by the Sec-
retary, 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
168
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 that
constitutes or would constitute a violation of this
Act, or any regulation, order, or license issued
under this Act; or
(B) a criminal indictment has been re-
turned against the person subject to the order al-
leging a violation of this Act or any of the stat-
utes listed in section 503.
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
shall either affirm, modify, reverse, or vacate the deci-
sion of the administrative law judge by written order
within 10 working days after receiving the appeal.
The written order of the Secretary shall be final and
is not subject to judicial review, except as provided in
paragraph (3). The materials submitted to the admin-
istrative law judge and the Secretary shall constitute
169
the administrative record for purposes of review by
the court.
(3) COURT APPEALS.—An order of the Secretary
affirming, in whole or in part, the issuance or re-
newal of a temporary denial order may, within 15
days after the order is issued, be appealed by a person
subject to the order to the United States Court of Ap-
peals for the District of Columbia Circuit, which shall
have jurisdiction of the appeal. The court may review
only those issues necessary to determine whether the
issuance of the temporary denial order was based on
reasonable cause to believe that the person subject to
the order was engaged in or was about to engage in
any act or practice that constitutes or would con-
stitute a violation of this title, or any regulation,
order, or license issued under this Act, or whether a
criminal indictment has been returned against the
person subject to the order alleging a violation of this
Act or of any of the statutes listed in section 503. The
court shall vacate the Secretary’s order if the court
finds that the Secretary’s order is arbitrary, capri-
cious, an abuse of discretion, or otherwise not in ac-
cordance with law.
(e) LIMITATIONS ON REVIEW OF CLASSIFIED INFOR-
MATION.—Any classified information that is included in
170
the administrative record that is subject to review pursuant
to subsection (b)(1) or (d)(3) may be reviewed by the court
only on an ex parte basis and in camera.
TITLE VI—EXPORT CONTROL
AUTHORITY AND REGULATIONS
SEC. 601. EXPORT CONTROL AUTHORITY AND REGULA-
TIONS.
(a) EXPORT CONTROL AUTHORITY.—
(1) IN GENERAL.—Unless otherwise reserved to
the President or a department (other than the Depart-
ment) or agency of the United States, all power, au-
thority, and discretion conferred by this Act shall be
exercised by the Secretary.
(2) DELEGATION OF FUNCTIONS OF THE SEC-
RETARY.—The Secretary may delegate any function
under this Act, unless otherwise provided, to the
Under Secretary of Commerce for Export Administra-
tion or to any other officer of the Department.
(b) UNDER SECRETARY OF COMMERCE; ASSISTANT
SECRETARIES.—
(1) UNDER SECRETARY OF COMMERCE.—There
shall be within the Department an Under Secretary
of Commerce for Export Administration (in this sec-
tion referred to as the ‘‘Under Secretary’’) who shall
be appointed by the President, by and with the advice
171
and consent of the Senate. The Under Secretary shall
carry out all functions of the Secretary under this Act
and other provisions of law relating to national secu-
rity, as the Secretary may delegate.
(2) ADDITIONAL
ASSISTANT
SECRETARIES.—In
addition to the number of Assistant Secretaries other-
wise authorized for the Department of Commerce,
there shall be within the Department of Commerce the
following Assistant Secretaries of Commerce:
(A) An Assistant Secretary for Export Ad-
ministration who shall be appointed by the
President, by and with the advice and consent of
the Senate, and who shall assist the Secretary
and the Under Secretary in carrying out func-
tions relating to export listing and licensing.
(B) An Assistant Secretary for Export En-
forcement who shall be appointed by the Presi-
dent, by and with the advice and consent of the
Senate, and who shall assist the Secretary and
the Under Secretary in carrying out functions
relating to export enforcement.
(c) ISSUANCE OF REGULATIONS.—
(1) IN GENERAL.—The President and the Sec-
retary may issue such regulations as are necessary to
carry out this Act. Any such regulations the purpose
172
of which is to carry out title II or title III may be
issued only after the regulations are submitted for re-
view to such departments or agencies as the President
considers appropriate. The Secretary shall consult
with the appropriate export control advisory com-
mittee appointed under section 105(a) in formulating
regulations under this title. The second sentence of
this subsection does not require the concurrence or ap-
proval of any official, department, or agency to which
such regulations are submitted.
(2) AMENDMENTS TO REGULATIONS.—If the Sec-
retary proposes to amend regulations issued under
this Act, the Secretary shall report to the Committee
on Banking, Housing, and Urban Affairs of the Sen-
ate and the Committee on International Relations of
the House of Representatives on the intent and ra-
tionale of such amendments. Such report shall evalu-
ate the cost and burden to the United States exporters
of the proposed amendments in relation to any en-
hancement of licensing objectives. The Secretary shall
consult with the appropriate export control advisory
committees appointed under section 105(a) in amend-
ing regulations issued under this Act.
(3) REGULATIONS ON EXPORTS TO FOREIGN NA-
TIONALS.—The Secretary, with the concurrence of the
173
Secretary of State and the Secretary of Defense, shall
issue regulations to govern the release of technology
to a foreign national within the United States and
to establish appropriate procedures and entities to en-
sure compliance with those regulations.
SEC. 602. CONFIDENTIALITY OF INFORMATION.
(a) EXEMPTIONS FROM DISCLOSURE.—
(1) INFORMATION
OBTAINED
ON
OR
BEFORE
JUNE 30, 1980.—Except as otherwise provided by the
third sentence of section 502(c)(2) and by section
507(b)(2), information obtained under the Export Ad-
ministration Act of 1979, or any predecessor statute,
on or before June 30, 1980, which is deemed confiden-
tial, including Shipper’s Export Declarations, or with
respect to which a request for confidential treatment
is made by the person furnishing such information,
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 Sec-
retary determines that the withholding thereof is con-
trary to the national interest.
(2) INFORMATION
OBTAINED
AFTER
JUNE
30,
1980.—Except as otherwise provided by the third sen-
tence of section 502(c)(2) and by section 507(b)(2),
information obtained under this Act, under the Ex-
174
port Administration Act of 1979 after June 30, 1980,
or under the Export Administration regulations as
maintained and amended under the authority of the
International Emergency Economic Powers Act (50
U.S.C. 1706), may be withheld from disclosure only
to the extent permitted by statute, except that infor-
mation submitted, obtained, or considered in connec-
tion with an application for an export license or
other export authorization (or recordkeeping or re-
porting requirement) under the Export Administra-
tion Act of 1979, under this Act, or under the Export
Administration 
regulations 
as 
maintained 
and
amended under the authority of the International
Emergency Economic Powers Act (50 U.S.C. 1706),
including—
(A) the export license or other export au-
thorization itself,
(B) classification requests described in sec-
tion 401(h),
(C) information or evidence obtained in the
course of any investigation by an officer or em-
ployee of the Department of Commerce,
(D) information obtained or furnished
under title V in connection with any inter-
175
national agreement, treaty, or other obligation,
and
(E) information obtained in making the de-
terminations set forth in section 211 of this Act,
and information obtained in any investigation of an
alleged violation of section 502 of this Act except for
information required to be disclosed by section
502(c)(2) or 507(b)(2) of this Act, shall be withheld
from public disclosure and shall not be subject to dis-
closure under section 552 of title 5, United States
Code, unless the release of such information is deter-
mined by the Secretary to be in the national interest.
(b) INFORMATION TO CONGRESS AND GAO.—
(1) IN GENERAL.—Nothing in this title shall be
construed as authorizing the withholding of informa-
tion from Congress or from the General Accounting
Office.
(2) AVAILABILITY TO THE CONGRESS—
(A) IN
GENERAL.—Any information ob-
tained at any time under this title or under any
predecessor Act regarding the control of exports,
including any report or license application re-
quired under this title, shall be made available
to any committee or subcommittee of Congress of
appropriate jurisdiction upon the request of the
176
chairman or ranking minority member of such
committee or subcommittee.
(B) PROHIBITION
ON
FURTHER
DISCLO-
SURE.—No committee, subcommittee, or Member
of Congress shall disclose any information ob-
tained under this Act or any predecessor Act re-
garding the control of exports which is submitted
on a confidential basis to the Congress under
subparagraph (A) unless the full committee to
which the information is made available deter-
mines that the withholding of the information is
contrary to the national interest.
(3) AVAILABILITY TO THE GAO.—
(A) IN
GENERAL.—Notwithstanding sub-
section (a), information described in paragraph
(2) shall, consistent with the protection of intel-
ligence, counterintelligence, and law enforcement
sources, methods, and activities, as determined
by the agency that originally obtained the infor-
mation, and consistent with the provisions of
section 716 of title 31, United States Code, be
made available only by the agency, upon request,
to the Comptroller General of the United States
or to any officer or employee of the General Ac-
177
counting Office authorized by the Comptroller
General to have access to such information.
(B) PROHIBITION
ON
FURTHER
DISCLO-
SURES.—No officer or employee of the General
Accounting Office shall disclose, except to Con-
gress in accordance with this paragraph, any
such information which is submitted on a con-
fidential basis and from which any individual
can be identified.
(c) INFORMATION EXCHANGE.—Notwithstanding sub-
section (a), the Secretary and the Commissioner of Customs
shall exchange licensing and enforcement information with
each other as necessary to facilitate enforcement efforts and
effective license decisions.
(d) PENALTIES FOR DISCLOSURE OF CONFIDENTIAL
INFORMATION.—
(1) DISCLOSURE
PROHIBITED.—No officer or
employee of the United States, or any department or
agency thereof, may publish, divulge, disclose, or
make known in any manner or to any extent not au-
thorized by law any information that—
(A) the officer or employee obtains in the
course of his or her employment or official duties
or by reason of any examination or investigation
made by, or report or record made to or filed
178
with, such department or agency, or officer or
employee thereof; and
(B) is exempt from disclosure under this
section.
(2) CRIMINAL PENALTIES.—Any such officer or
employee who knowingly violates paragraph (1) shall
be fined not more than $50,000, imprisoned not more
than 1 year, or both, for each violation of paragraph
(1). Any such officer or employee may also be re-
moved from office or employment.
(3) CIVIL
PENALTIES; ADMINISTRATIVE
SANC-
TIONS.—The Secretary may impose a civil penalty of
not more than $5,000 for each violation of paragraph
(1), except that no civil penalty may be imposed on
an officer or employee of the United States, or any
department or agency thereof, without the concurrence
of the department or agency employing such officer or
employee. Subsections 503(e), (g), (h), and (i) and
507(a), (b), and (c) shall apply to actions to impose
civil penalties under this paragraph. At the request of
the Secretary, a department or agency employing an
officer or employee determined to have violated para-
graph (1) shall deny that officer or employee access
to information exempt from disclosure under this sec-
tion. Any officer or employee who commits a violation
179
of paragraph (1) may also be removed from office or
employment by the employing agency. Any officer or
employee who commits such violation may also be re-
moved from office or employment for the violation of
paragraph (1). Sections 503 (e), (g), (h), and (i) and
507 (a), (b), and (c) shall apply to violations de-
scribed in this paragraph.
TITLE VII—EXPORTS OF
SATELLITES
SEC. 701. APPLICABILITY.
This title applies with respect to exports, and all ap-
plications for licenses to export, satellites and related items,
notwithstanding any other provision of this or any other
Act.
SEC. 702. EXPORT CONTROLS ON SATELLITES AND RE-
LATED ITEMS.
All satellites and related items that were on the Com-
merce Control List of dual-use items in the Export Admin-
istration Regulations (15 C.F.R. part 730 et seq.) on Octo-
ber 16, 1998, shall, subject to sections 703 and 704, be con-
trolled under this Act.
SEC. 703. EXPORT LICENSE PROCEDURES.
(a) REFERRAL TO OTHER DEPARTMENTS AND AGEN-
CIES.—The Secretary shall refer to the Secretary of Defense,
the Secretary of State, and the heads of other departments
180
and agencies that the Secretary considers appropriate, all
applications for licenses to export satellites and related
items.
(b) REQUIRED CONSULTATIONS WITH INTELLIGENCE
COMMUNITY.—The Secretary, the Secretary of Defense, and
the Secretary of State, as appropriate, shall consult with
the Director of Central Intelligence during the review of any
application for a license involving the overseas launch of
a commercial satellite of United States origin.
(c) TIME PERIOD FOR REFERRALS.—Within 30 days
after the Secretary refers an export license application
under this section, each department or agency to which an
export license application has been referred shall provide
the Secretary with a recommendation to either approve or
deny the license application. A department or agency that
fails to provide a recommendation within that 30-day pe-
riod shall be deemed to have no objection to the decision
of the Secretary on the license application.
(d) INTERAGENCY DISPUTE RESOLUTION PROCESS.—
If there is no agreement among the Secretary, the Secretary
of Defense, and the Secretary of State to issue or deny a
license to which this section applies, then the Secretary shall
refer the license application to an interagency dispute reso-
lution process established by the President. The dispute reso-
lution process shall be completed within a period of 60 days.
181
A license pursuant to the application shall not be issued
or denied until the Secretary, the Secretary of Defense, and
the Secretary of State agree to issue or deny the license,
or until the President makes a determination to issue or
deny the license.
SEC. 704. MANDATORY STATE DEPARTMENT REVIEW.
(a) CERTAIN DEFENSE SERVICES.—The provision of
defense services by United States persons, including services
or assistance provided during technical interchange meet-
ings, in connection with the launch of a satellite from, or
by nationals of, the People’s Republic of China, are subject
to section 38 of the Arms Export Control Act.
(b) NOTIFICATION TO CONGRESS.—At least 30 days be-
fore any export license or any technical assistance agree-
ment is approved under subsection (a), the President shall
transmit a certification with respect to such export license
or technical assistance agreement pursuant to section 36(c)
of the Arms Export Control Act, without regard to the value
limitation thereunder.
SEC. 705. DEFINITIONS.
In this title:
(1) DEFENSE SERVICE.—The term ‘‘defense serv-
ice’’ shall have the meaning set forth in section 47 of
the Arms Export Control Act or regulations issued
thereunder.
182
(2) RELATED ITEMS.—The term ‘‘related items’’
means the satellite fuel, ground support equipment,
test equipment, payload adapter or interface hard-
ware, replacement parts, and nonembedded solid pro-
pellant orbit transfer engines described in the report
submitted to Congress by the Department of State on
February 6, 1998, pursuant to section 38(f) of the
Arms Export Control Act (22 U.S.C. 2778(f)), as well
as systems, components, parts, accessories, and associ-
ated equipment for satellites, including ground con-
trol equipment.
(3) SATELLITE.—The term ‘‘satellite’’ means any
commercial communications satellite.
SEC. 706. CONFORMING AMENDMENTS.
(a) 1999 NDAA.—(1) Section 1513(a) of the Strom
Thurmond National Defense Authorization Act for Fiscal
Year 1999 (22 U.S.C. 2778 note) is repealed.
(2) Section 1513(c) of that Act is amended by striking
‘‘(1) Subsection (a)’’ and all that follows through ‘‘(2)’’.
(3) Section 1514(a)(6) of that Act is amended by strik-
ing ‘‘Secretary of State’’ and inserting ‘‘Secretary of Com-
merce and the Secretary of State’’.
(b) 2000 NDAA.—(1) Section 1404 of the National De-
fense Authorization Act for Fiscal Year 2000 (22 U.S.C.
2778 note) is amended in the matter preceding paragraph
183
(1), by striking ‘‘Secretary of State’’ and inserting ‘‘Sec-
retary of Commerce or the Secretary of State, as the case
may be,’’.
(2) Section 1410 of that Act, and the item relating to
that section in the table of contents of that Act, are repealed.
(3) Section 1411(a) of that Act is amended in the first
sentence by striking ‘‘involving the overseas launch of a
commercial satellite of United States origin’’ and inserting
‘‘to provide defense services referred to in section 704 of the
Export Administration Act of 2001, in connection with the
launch of a satellite’’.
(4) Section 1412(d) of that Act is amended by striking
‘‘Secretary of State and’’ and inserting ‘‘Secretary of Com-
merce, the Secretary of State, and’’.
(c)
ADDITIONAL
CONFORMING
AMENDMENTS.—(1)
Section 1309 of the Admiral James W. Nance and Meg
Donovan Foreign Relations Authorization Act, Fiscal Years
2000 and 2001 (as enacted by Public Law 106–113; 113
Stat. 1501A–460) is amended—
(A) by amending the section heading to read as
follows:
‘‘SEC. 1309. OFFICE OF DEFENSE TRADE CONTROLS.’’;
(B) by striking subsections (a) and (c); and
(C) in subsection (b), by striking ‘‘(b) FINANCIAL
AND PERSONNEL RESOURCES.—’’.
184
(2) The table of contents of that Act is amended by
striking the item relating to section 1309 and inserting the
following:
‘‘Sec. 1309. Office of Defense Trade Controls.’’.
SEC. 707. EFFECTIVE DATE.
(a) IN GENERAL.—This title and the amendments
made by this Act shall take effect on the date of the enact-
ment of this Act, and shall apply to any export license ap-
plication made under the Arms Export Control Act before
such date of enactment which is pending on such date, and
to any export license application made on or after such
date.
(b) TRANSFER OF PENDING APPLICATIONS.—Any ex-
port license application made under the Arms Export Con-
trol Act before the date of the enactment of this Act, to which
section 702 of this Act applies and which is pending on
such date of enactment, shall be transferred to the Depart-
ment of Commerce upon the enactment of this Act.
SEC. 708. EFFECT ON EXISTING LAW.
Nothing in this title shall affect the continued applica-
tion of section 36 or 38 of the Arms Export Control Act,
or any other provision of that Act, to the export or other
provision of defense services related to items in Category
4 of the United States Munitions List.
185
TITLE VIII VII—MISCELLANEOUS
PROVISIONS
SEC. 801 701. ANNUAL REPORT.
(a) ANNUAL REPORT.—Not later than February 1 of
each year, the Secretary shall submit to Congress a report
on the administration of this Act during the fiscal year end-
ing September 30 of the preceding calendar year. All Fed-
eral agencies shall cooperate fully with the Secretary in pro-
viding information for each such report.
(b) REPORT ELEMENTS.—Each such report shall in-
clude in detail—
(1) a description of the implementation of the ex-
port control policies established by this Act, including
any delegations of authority by the President and any
other changes in the exercise of delegated authority;
(2) a description of the changes to and the year-
end status of country tiering and the Control List;
(3) a description of the petitions filed and the
determinations made with respect to foreign avail-
ability and mass-market status, the set-asides of for-
eign availability and mass-market status determina-
tions, and negotiations to eliminate foreign avail-
ability;
(4) a description of any enhanced control im-
posed on an item pursuant to section 201(d);
186
(5) a description of the regulations issued under
this Act;
(6) a description of organizational and proce-
dural changes undertaken in furtherance of this Act;
(7) a description of the enforcement activities,
violations, and sanctions imposed under this Act;
(8) a statistical summary of all applications and
notifications, including—
(A) the number of applications and notifi-
cations pending review at the beginning of the
fiscal year;
(B) the number of notifications returned
and subject to full license procedure;
(C) the number of notifications with no ac-
tion required;
(D) the number of applications that were
approved, denied, or withdrawn, and the number
of applications where final action was taken;
and
(E) the number of applications and notifi-
cations pending review at the end of the fiscal
year;
(9) summary of export license data by export
identification code and dollar value by country;
(10) an identification of processing time by—
187
(A) overall average, and
(B) top 25 export identification codes;
(11) an assessment of the effectiveness of multi-
lateral regimes, and a description of negotiations re-
garding export controls;
(12) a description of the significant differences
between the export control requirements of the United
States and those of other multilateral control regime
members, and the specific differences between United
States requirements and those of other significant
supplier countries;
(13) an assessment of the costs of export controls;
(14) a description of the progress made toward
achieving the goals established for the Department
dealing with export controls under the Government
Performance Results Act;
(15) an analysis and risk assessment of dual-use
United States-origin items useful for the development
or production of weapons of mass destruction ac-
quired by countries identified by the Director of the
Central Intelligence in the most recent report sub-
mitted to Congress under section 721 of the Intel-
ligence Authorization Act for Fiscal Year 1997; and
(16) any other reports required by this Act to be
submitted to the Committee on Banking, Housing,
188
and Urban Affairs of the Senate and the Committee
on International Relations of the House of Represent-
atives.
(c) FEDERAL
REGISTER
PUBLICATION
REQUIRE-
MENTS.—Whenever information under this Act is required
to be published in the Federal Register, such information
shall, in addition, be posted on the Department of Com-
merce or other appropriate government website.
SEC. 802 702. RELATIONSHIP TO THE ARMS EXPORT CON-
TROL ACT.
Nothing in this Act shall be construed to alter or
affect—
(1) any provision of the Arms Export Control
Act; or
(2) any authority delegated by the President to
the Secretary of State under the Arms Export Control
Act.
SEC. 803 703. ENHANCEMENT OF CONGRESSIONAL OVER-
SIGHT OF NUCLEAR TRANSFERS TO NORTH
KOREA.
The North Korea Threat Reduction Act of 1999 (sub-
title B of title VIII of division A of H.R. 3427, as enacted
into law by section 1000(a)(7) of Public Law 106–113, and
as contained in appendix G to such Public Law) is amend-
ed in section 822(a)—
189
(1) by redesignating paragraphs (1) through (7)
as subparagraphs (A) through (G), respectively, and
by indenting each such subparagraph 2 ems to the
right;
(2) by striking ‘‘until the President’’ and insert-
ing ‘‘until—
‘‘(1) the President’’;
(3) at the end of subparagraph (G) (as redesig-
nated in paragraph (1)) by striking the period and
inserting ‘‘; and
‘‘(2) a joint resolution of the two Houses of Con-
gress is enacted into law—
‘‘(A) the matter after the resolving clause of
which is as follows: ‘That the Congress hereby
concurs in the determination and report of the
President relating to compliance by North Korea
with certain international obligations trans-
mitted pursuant to section 822(a)(1) of the North
Korea Threat Reduction Act of 1999.’;
‘‘(B) which does not have a preamble; and
‘‘(C) the title of which is as follows: ‘Joint
Resolution relating to compliance by North
Korea with certain international obligations
pursuant to the North Korea Threat Reduction
Act of 1999.’.’’; and
190
(4) by striking ‘‘such agreement,’’ both places it
appears and inserting in both places ‘‘such agreement
(or that are controlled under the Export Trigger List
of the Nuclear Suppliers Group),’’.
SEC. 804 704. PROCEDURES FOR CONSIDERATION OF JOINT
RESOLUTIONS.
The North Korea Threat Reduction Act of 1999 is
amended—
(1) by redesignating section 823, and the item
relating to that section in the table of contents, as sec-
tion 824;
(2) by inserting after section 822 the following
new section:
‘‘SEC. 823. PROCEDURES FOR CONSIDERATION OF JOINT
RESOLUTION 
DESCRIBED 
IN 
SECTION
822(A)(2).
‘‘(a) RULEMAKING.—The provisions of this section are
enacted by the Congress—
‘‘(1) as an exercise of the rulemaking power of
the House of Representatives and the Senate, respec-
tively, and, as such, shall be considered as part of the
rules of either House and shall supersede other rules
only to the extent they are inconsistent therewith; and
‘‘(2) with full recognition of the constitutional
right of either House to change the rules so far as they
191
relate to the procedures of that House at any time,
in the same manner, and to the same extent as in
the case of any other rule of that House.
‘‘(b) INTRODUCTION AND REFERRAL.—
‘‘(1) INTRODUCTION.—A joint resolution de-
scribed in section 822(a)(2)—
‘‘(A) shall be introduced in the House of
Representatives by the majority leader or minor-
ity leader or by a Member of the House of Rep-
resentatives designated by the majority leader or
minority leader; and
‘‘(B) shall be introduced in the Senate by
the majority leader or minority leader or a
Member of the Senate designated by the majority
leader or minority leader.
‘‘(2) REFERRAL.—The joint resolution shall be
referred to the Committee on International Relations
of the House of Representatives and the Committee on
Foreign Relations of the Senate.
‘‘(c) DISCHARGE OF COMMITTEES.—If a committee to
which a joint resolution described in section 822(a)(2) is
referred has not reported such joint resolution by the end
of 30 days beginning on the date of its introduction, such
committee shall be discharged from further consideration of
192
such joint resolution, and such joint resolution shall be
placed on the appropriate calendar of the House involved.
‘‘(d) FLOOR CONSIDERATION IN THE HOUSE OF REP-
RESENTATIVES.—
‘‘(1) IN GENERAL.—On or after the third cal-
endar day (excluding Saturdays, Sundays, or legal
holidays, except when the House of Representatives is
in session on such a day) after the date on which the
committee to which a joint resolution described in sec-
tion 822(a)(2) is referred has reported, or has been
discharged from further consideration of, such a joint
resolution, it shall be in order for any Member of the
House to move to proceed to the consideration of the
joint resolution. A Member of the House may make
the motion only on the day after the calendar day on
which the Member announces to the House the Mem-
ber’s intention to do so. Such motion is privileged
and is not debatable. The motion is not subject to
amendment or to a motion to postpone. A motion to
reconsider the vote by which the motion is agreed to
shall not be in order. If a motion to proceed to the
consideration of the joint resolution is agreed to, the
House shall immediately proceed to consideration of
the joint resolution which shall remain the unfinished
business until disposed of.
193
‘‘(2) DEBATE.—Debate on a joint resolution de-
scribed in section 822(a)(2), and on all debatable mo-
tions and appeals in connection therewith, shall be
limited to not more than two hours, which shall be di-
vided equally between those favoring and those oppos-
ing the joint resolution. An amendment to the joint
resolution is not in order. A motion further to limit
debate is in order and is not debatable. A motion to
table, a motion to postpone, or a motion to recommit
the joint resolution is not in order. A motion to recon-
sider the vote by which the joint resolution is agreed
to or disagreed to is not in order.
‘‘(3) APPEALS.—Appeals from the decisions of
the Chair to the procedure relating to a joint resolu-
tion described in section 822(a)(2) shall be decided
without debate.
‘‘(e) FLOOR CONSIDERATION IN THE SENATE.—Any
joint resolution described in section 822(a)(2) shall be con-
sidered in the Senate in accordance with the provisions of
section 601(b)(4) of the International Security Assistance
and Arms Export Control Act of 1976.
‘‘(f) CONSIDERATION BY THE OTHER HOUSE.—If, be-
fore the passage by one House of a joint resolution of that
House described in section 822(a)(2), that House receives
194
from the other House a joint resolution described in section
822(a)(2), then the following procedures shall apply:
‘‘(1) The joint resolution of the other House shall
not be referred to a committee and may not be consid-
ered in the House receiving it except in the case of
final passage as provided in paragraph (2)(B).
‘‘(2) With respect to a joint resolution described
in section 822(a)(2) of the House receiving the joint
resolution—
‘‘(A) the procedure in that House shall be
the same as if no joint resolution had been re-
ceived from the other House; but
‘‘(B) the vote on final passage shall be on
the joint resolution of the other House.
‘‘(3) Upon disposition of the joint resolution re-
ceived from the other House, it shall no longer be in
order to consider the joint resolution that originated
in the receiving House.
‘‘(g) COMPUTATION OF DAYS.—In the computation of
the period of 30 days referred to in subsection (c), there
shall be excluded the days on which either House of Congress
is not in session because of an adjournment of more than
3 days to a day certain or because of an adjournment of
the Congress sine die.’’; and
195
(3) by inserting after the item relating to section
822 in the table of contents the following new item:
‘‘Sec. 823. Procedures for consideration of joint resolution described in section
822(a)(2).’’.
SEC. 805 705. RECOMMENDATIONS OF THE JUDICIAL RE-
VIEW COMMISSION ON FOREIGN ASSET CON-
TROL.
In accordance with the findings of the Judicial Review
Commission on Foreign Asset Control contained in the re-
port of the Commission submitted to Congress in January
2001 under section 810(g) of the Foreign Narcotics Kingpin
Designation Act (21 U.S.C. 1908(g)), the President shall
direct the Office of Foreign Assets Control of the Depart-
ment of the Treasury to—
(1) publish proposed regulations on sanctions in
order to provide public notice of, and invite public
comment on, the proposed regulations, unless exigent
circumstances are present;
(2) provide interpretations and guidelines to ac-
company the issuance of regulations; and
(3) take steps to expand and enhance the trans-
parency of its operations and decisionmaking stand-
ards by publishing its licensing and civil penalty de-
cisions in unclassified form and by providing answers
to ‘‘frequently asked questions’’ on its website.
196
SEC. 806 706. IMPROVEMENTS TO THE AUTOMATED EXPORT
SYSTEM.
(a) MANDATORY FILING.—The Secretary, with the con-
currence 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 regula-
tions issued pursuant to section 1252(b) of the Security As-
sistance 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 sharing
arrangement with the heads of United States Customs Serv-
ice and the Census Bureau to adjust the Automated Export
System to parallel information currently collected by the
Department of State.
(c) SECRETARY OF TREASURY FUNCTIONS.—Section
303 of title 13, United States Code, is amended by striking
‘‘, other than by mail,’’.
(d) FILING EXPORT INFORMATION, DELAYED FILINGS,
PENALTIES FOR FAILURE TO FILE.—Section 304 of title
13, United States Code, is amended—
(1) in subsection (a)—
197
(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 delin-
quency beyond the prescribed period, but not
more than $10,000 per violation’’;
(2) by redesignating subsection (b) as subsection
(c); and
(3) by inserting after subsection (a) the fol-
lowing:
‘‘(b) Any person, other than a person described in
subsection (a), required to submit export information, shall
file such information in accordance with any rule, regula-
tion, 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 Commerce designated
by the Secretary) may impose a civil penalty not to exceed
198
$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
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 subsection
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
199
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 in-
directly as a result of the violation.
‘‘(b) CIVIL PENALTIES.—The Secretary (and officers
and employees of the Department of Commerce specifically
designated by the Secretary) may impose a civil penalty
not to exceed $10,000 per violation on any person violating
the provisions of this chapter or any rule, regulation, or
order issued thereunder, except as provided in section 304.
Such penalty may be in addition to any other penalty im-
posed by law.
‘‘(c) CIVIL PENALTY PROCEDURE.—(1) When a civil
penalty is sought for a violation of this section or of section
304, the charged party is entitled to receive a formal com-
plaint specifying the charges and, at his or her request, to
contest the charges in a hearing before an administrative
law judge. Any such hearing shall be conducted in accord-
ance with sections 556 and 557 of title 5.
200
‘‘(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 commenced
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 re-
view.
‘‘(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
‘‘(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 de-
201
posited into the general fund of the Treasury and credited
as miscellaneous receipts.
‘‘(d) ENFORCEMENT.—(1) The Secretary of Commerce
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 appropriate 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 approved by the Attorney
General.
‘‘(2) The Commissioner of Customs may designate offi-
cers or employees of the Customs Service to enforce the pro-
visions of this chapter, or to conduct investigations pursu-
ant to this chapter.
‘‘(e) REGULATIONS.—The Secretary of Commerce shall
promulgate regulations for the implementation and enforce-
ment of this section.
‘‘(f) EXEMPTION.—The criminal fines provided for in
this section are exempt from the provisions of section 3571
of title 18.’’.
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of chapter 9 of title 13, United
States Code, is amended by striking the item relating
to section 305 and inserting the following:
‘‘305. Penalties for unlawful export information activities.’’.
202
SEC. 807 707. TECHNICAL AND CONFORMING AMENDMENTS.
(a) REPEAL.—The Export Administration Act of 1979
(50 U.S.C. App. 2401 et seq.) is repealed.
(b) ENERGY POLICY AND CONSERVATION ACT.—
(1) Section 103 of the Energy Policy and Con-
servation Act (42 U.S.C. 6212), and the item relating
to that section in the table of contents for that Act,
are repealed.
(2) Section 251(d) of the Energy Policy and
Conservation Act (42 U.S.C. 6271(d)) is repealed.
(c) ALASKA NATURAL GAS TRANSPORTATION ACT.—
Section 12 of the Alaska Natural Gas Transportation Act
of 1976 (15 U.S.C. 719j) is repealed.
(d) MINERAL LEASING ACT.—Section 28(u) of the
Mineral Leasing Act (30 U.S.C. 185(u)) is repealed.
(e) EXPORTS OF ALASKAN NORTH SLOPE OIL.—Sec-
tion 28(s) of the Mineral Leasing Act (30 U.S.C. 185(s))
is repealed.
(f) DISPOSITION OF CERTAIN NAVAL PETROLEUM RE-
SERVE PRODUCTS.—Section 7430(e) of title 10, United
States Code, is repealed.
(g) OUTER CONTINENTAL SHELF LANDS ACT.—Sec-
tion 28 of the Outer Continental Shelf Lands Act (43 U.S.C.
1354) is repealed.
(h) ARMS EXPORT CONTROL ACT.—The Arms Export
Control Act is amended as follows:
203
(1) Section 36(g) (22 U.S.C. 2776(g)) is amend-
ed by striking ‘‘12(c) of the Export Administration
Act of 1979’’ and inserting ‘‘602(c) of the Export Ad-
ministration Act of 2001’’.
(2) Section 38 (22 U.S.C. 2778) is amended—
(A) in subsection (e)—
(i) in the first sentence, by striking
‘‘subsections (c)’’ and all that follows
through ‘‘12 of such Act,’’ and inserting
‘‘subsections (b), (c), (d), and (e) of section
503 of the Export Administration Act of
2001, by subsections (a) and (b) of section
506 of that Act, and by section 602 of that
Act,’’;
(ii) in the first sentence, by striking
‘‘11(c)(2)(B)’’ and inserting ‘‘507(b)(1)’’;
and
(iii) in the third sentence, by striking
‘‘11(c) of the Export Administration Act of
1979’’ and inserting ‘‘503(c) of the Export
Administration Act of 2001’’;
(B) in subsection (f)(1), by striking ‘‘1979’’
and inserting ‘‘2001’’; and
204
(C) in subsection (g)(1)(A)(ii), by inserting
‘‘or section 503 of the Export Administration Act
of 2001’’ after ‘‘1979’’.
(3) Section 39A(c) (22 U.S.C. 2779a(c)) is
amended—
(A) by striking ‘‘subsections (c),’’ and all
that follows through ‘‘12(a) of such Act’’ and in-
serting ‘‘subsections (c), (d), and (e) of section
503, section 507(c), and subsections (a) and (b)
of section 506, of the Export Administration Act
of 2001’’;
(B) by striking ‘‘11(c)(2)(B) of such Act’’
and inserting ‘‘507(b)(1) of that Act’’; and
(C) by striking ‘‘11(c)’’ and inserting
‘‘503(c)’’.
(4) Section 40(k) (22 U.S.C. 2780(k)) is
amended—
(A) by striking ‘‘11(c), 11(e), 11(g), and
12(a) of the Export Administration Act of 1979’’
and inserting ‘‘503(b), 503(c), 503(e), 506(a),
and 506(b) of the Export Administration Act of
2001’’;
(B) by striking ‘‘11(c)(2)(B)’’ and inserting
‘‘507(b)(1)’’; and
205
(C) by striking ‘‘11(c)’’ and inserting
‘‘503(c)’’.
(5) Section 71(a) (22 U.S.C. 2797(a)) is amend-
ed by striking ‘‘section 6(l) of the Export Administra-
tion Act of 1979’’ and inserting ‘‘title II or III of the
Export Administration Act of 2001’’.
(6) Section 72 (22 U.S.C. 2797a) is amended—
(A) in subsection (a)(1)(A), by striking
‘‘section 5 or 6 of the Export Administration Act
of 1979 (50 U.S.C. App. 2404, 2405)’’ and in-
serting ‘‘title II or III of the Export Administra-
tion Act of 2001’’; and
(B) 
in 
subsection 
(c), 
by 
striking
‘‘6(j)(1)(A) of the Export Administration Act of
1979’’ and inserting ‘‘310(a)(1) of the Export
Administration Act of 2001’’.
(7) Section 73 (22 U.S.C. 2797b) is amended—
(A) in subsection (a)(1), by striking
‘‘11B(b)(1) of the Export Administration Act of
1979’’ and inserting ‘‘504(b)(1) of the Export
Administration Act of 2001’’; and
(B) in subsection (f), by striking ‘‘6(j)(1)(A)
of the Export Administration Act of 1979’’ and
inserting ‘‘section 310(a)(1) of the Export Ad-
ministration Act of 2001’’.
206
(8) Section 74(a)(6) (22 U.S.C. 2797c(a)(6)) is
amended by striking ‘‘16(2) of the Export Adminis-
tration Act of 1979 (50 U.S.C. App. 2415(2))’’ and
inserting ‘‘2(20) of the Export Administration Act of
2001’’.
(9) Section 81(a) (22 U.S.C. 2798(a)) is
amended—
(A) in paragraph (1)(C), by striking
‘‘1979’’ and inserting ‘‘2001’’; and
(B) in paragraph (2)(B), by striking ‘‘sec-
tion 6(j) of the Export Administration Act of
1979 (50 U.S.C. 2405(j))’’ and inserting ‘‘section
310 of the Export Administration Act of 2001’’.
(10) Section 102(b)(2)(G) (22 U.S.C. 2799aa–
1(b)(2)(G)) is amended by striking ‘‘section 6 of the
Export Administration Act of 1979’’ and inserting
‘‘title III of the Export Administration Act of 2001’’.
(i) OTHER PROVISIONS OF LAW.—
(1) Section 5(b)(4) of the Trading with the
Enemy Act (50 U.S.C. App. 5(b)(4)) is amended by
striking ‘‘section 5 of the Export Administration Act
of 1979, or under section 6 of that Act to the extent
that such controls promote the nonproliferation or
antiterrorism policies of the United States’’ and in-
207
serting ‘‘titles II and III of the Export Administra-
tion Act of 2001’’.
(2)(A) Section 502B(a)(2) of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2304(a)(2)) is amended
in the second sentence—
(i) by striking ‘‘Export Administration Act
of 1979’’ the first place it appears and inserting
‘‘Export Administration Act of 2001’’; and
(ii) by striking ‘‘Act of 1979)’’ and insert-
ing ‘‘Act of 2001)’’.
(B) Section 620E(h) of the Foreign Assistance
Act of 1961 (22 U.S.C. 2375(h)) is amended by strik-
ing ‘‘11B of the Export Administration Act of 1979’’
and inserting ‘‘504 of the Export Administration Act
of 2001’’.
(C) Section 620H(a)(1) of the Foreign Assistance
Act of 1961 (22 U.S.C. 2378(a)(1)) is amended by
striking ‘‘section 6(j) of the Export Administration
Act of 1979 (50 U.S.C. App. 2405(j))’’ and inserting
‘‘section 310 of the Export Administration Act of
2001’’.
(3) Section 565 of the Foreign Relations Author-
ization Act, Fiscal Years 1994 and 1995 (22 U.S.C.
2679c) is amended—
(A) in subsection (a)—
208
(i) in paragraph (2)—
(I) in subparagraph (A), by strik-
ing ‘‘8(a) of the Export Administra-
tion Act of 1979 (50 U.S.C. App.
2407(a))’’ and inserting ‘‘502(b) of the
Export Administration Act of 2001’’;
(II) in subparagraph (A), by
striking ‘‘8(a)(1) of such Act’’ and in-
serting ‘‘502(b)(1) of that Act’’; and
(III) in subparagraph (B), by
striking ‘‘16(2) of the Export Adminis-
tration Act of 1979 (50 U.S.C. App.
2415)’’ and inserting ‘‘2(20) of the Ex-
port Administration Act of 2001’’; and
(ii) in paragraph (3), by striking
‘‘8(a) of the Export Administration Act of
1979 (50 U.S.C. App. 2407(a))’’ and insert-
ing ‘‘502(b) of the Export Administration
Act of 2001’’; and
(B) in subsection (c)—
(i) in paragraph (1), in subsection
(b)(1) of the quoted material, by striking
‘‘8(a) of the Export Administration Act of
1979 (50 U.S.C. App. 2407(a))’’ and insert-
209
ing ‘‘502(b) of the Export Administration
Act of 2001’’; and
(ii) in paragraph (3), by striking
‘‘8(a) of the Export Administration Act of
1979 (50 U.S.C. App. 2407(a))’’ and insert-
ing ‘‘502(b) of the Export Administration
Act of 2001’’.
(4) Section 140(a) of the Foreign Relations Au-
thorization Act, Fiscal Years 1988 and 1989 (22
U.S.C. 2656f(a)) is amended—
(A) in paragraph (1)(B), by inserting ‘‘or
section 310 of the Export Administration Act of
2001’’ after ‘‘Act of 1979’’; and
(B) in paragraph (2), by inserting ‘‘or sec-
tion 310 of the Export Administration Act of
2001’’ after ‘‘6(j) of the Export Administration
Act of 1979’’.
(5)(A) Section 36(j)(1)(B) of the State Depart-
ment Basic Authorities Act of 1956 (22 U.S.C.
2708(j)(1)(B)) is amended by striking ‘‘section
6(j)(1)(A) of the Export Administration Act of 1979
(50 U.S.C. App. 2405(j)(1)(A))’’ and inserting ‘‘sec-
tion 310(a)(1) of the Export Administration Act of
2001’’.
210
(B) Section 40(e)(1) of the State Department
Basic Authorities Act of 1956 (22 U.S.C. 2712(e)(1))
is amended by striking ‘‘section 6(j)(1) of the Export
Administration Act of 1979’’ and inserting ‘‘section
310 of the Export Administration Act of 2001’’.
(C) Section 205(d)(4)(B) of the State Depart-
ment Basic Authorities Act of 1956 (22 U.S.C.
305(d)(4)(B)) is amended by striking ‘‘section 6(j) of
the Export Administration Act of 1979’’ and insert-
ing ‘‘section 310 of the Export Administration Act of
2001’’.
(6) Section 528(a) of the Foreign Operations,
Export Financing, and Related Programs Appropria-
tions Act, 1994 (Public Law 103–87) is amended by
striking ‘‘6(j) of the Export Administration Act of
1979’’ and inserting ‘‘310 of the Export Administra-
tion Act of 2001’’.
(7) Section 589(a) of the Foreign Operations,
Export Financing, and Related Programs Appropria-
tions Act, 1997 (Public Law 104–208) is amended by
striking ‘‘6(j) of the Export Administration Act of
1979’’ and inserting ‘‘310 of the Export Administra-
tion Act of 2001’’.
(8) Section 110 of the International Security
and Development Cooperation Act of 1980 (22 U.S.C.
211
2778a) is amended by striking ‘‘Act of 1979’’ and in-
serting ‘‘Act of 2001’’.
(9) Section 203(b)(3) of the International Emer-
gency Economic Powers Act (50 U.S.C. 1702(b)(3)) is
amended by striking ‘‘section 5 of the Export Admin-
istration Act of 1979, or under section 6 of such Act
to the extent that such controls promote the non-
proliferation or antiterrorism policies of the United
States’’ and inserting ‘‘the Export Administration
Act of 2001’’.
(10)(A) Section 405(a)(13)(A) of the Inter-
national Religious Freedom Act of 1998 (22 U.S.C.
6445(a)(13)(A)) is amended by striking ‘‘1979’’ and
inserting ‘‘2001’’.
(B) Section 423(a) of that Act (22 U.S.C.
6461(a)) is amended by striking ‘‘6(n) of the Export
Administration Act of 1979 (22 U.S.C. App.
2405(n))’’ and inserting ‘‘311 of the Export Adminis-
tration Act of 2001’’.
(11)(A) Section 103(e)(2)(B)(ii) of the Chemical
Weapons Convention Implementation Act of 1998 (22
U.S.C. 6713(e)(2)(B)(ii)) is amended to read as fol-
lows:
‘‘(ii) SANCTIONS UNDER EXPORT AD-
MINISTRATION ACT OF 2001.—The authori-
212
ties of title III of the Export Administra-
tion Act of 2001 shall be used to prohibit
the export to a person described in subpara-
graph (A) of any items on the National Se-
curity Control List established under section
202(a) of that Act.’’.
(B) Section 103(e)(3)(B)(iv) of the Chemical
Weapons Convention Implementation Act of 1998 (22
U.S.C. 6713(e)(3)(B)(iv)) is amended to read as fol-
lows:
‘‘(iv) SANCTIONS UNDER EXPORT AD-
MINISTRATION ACT OF 2001.—The authori-
ties of title III of the Export Administra-
tion Act of 2001 shall be used to prohibit
the export to a country described in sub-
paragraph (A) of any items on the National
Security Control List established under sec-
tion 202(a) of that Act.’’.
(12) Section 1423(b)(1) of the Defense Against
Weapons of Mass Destruction Act of 1996 (50 U.S.C.
2332(b)(1)) is amended by striking ‘‘11 of the Export
Administration Act of 1979 (50 U.S.C. App. 2410)’’
and inserting ‘‘503 of the Export Administration Act
of 2001’’.
213
(13) Section 586G of the Iraq Sanctions Act of
1990 (50 U.S.C. 1701 note) is amended—
(A) by amending subsection (a)(3) to read
as follows:
‘‘(3) EXPORTS OF CERTAIN COMMODITIES AND
TECHNOLOGY.—The authorities of titles II and III of
the Export Administration Act of 2001 shall be used
to prohibit the export to Iraq of any commodities or
technology on the Commerce Control List established
under that Act.’’; and
(B) in subsection (b) by striking ‘‘the date
described in subsection (m)(1)’’ and all that fol-
lows through ‘‘shall be deemed’’ and inserting
‘‘the dates described in section 301(d)(1) of the
Export Administration Act of 2001 shall be
deemed’’.
(14) Section 601(a) of the Nuclear Non-Pro-
liferation Act of 1978 (22 U.S.C. 3281(a)) is
amended—
(A) in paragraph (6)—
(i) in subparagraph (A)—
(I) in clause (iii), by striking
‘‘1979’’ and inserting ‘‘2001’’; and
(II) in clause (iv), by adding
‘‘and’’ after the semicolon; and
214
(ii) in subparagraph (C)—
(I) by redesignating such sub-
paragraph as paragraph (7) and
aligning the text with the text of para-
graph (6) that precedes subparagraph
(A); and
(II) by inserting ‘‘a description
of’’ before ‘‘the progress’’; and
(B) in the matter that appears following
paragraph (7), as so redesignated—
(i) by striking ‘‘paragraph (6)’’ and
inserting ‘‘paragraphs (6) and (7)’’; and
(ii) by striking ‘‘12(c)(1) of the Export
Administration Act of 1979’’ and inserting
‘‘602(a) of the Export Administration Act
of 2001’’.
(15) Section 304(a)(2) of the Chemical and Bio-
logical Weapons Control and Warfare Elimination
Act of 1991 (22 U.S.C. 5603(a)(2)) is amended by
striking ‘‘1979’’ and inserting ‘‘2001’’.
(16) Section 307 of the Chemical and Biological
Weapons Control and Warfare Elimination Act of
1991 (22 U.S.C. 5605) is amended—
(A) by amending paragraph (5) of sub-
section (a) to read as follows:
215
‘‘(5) EXPORTS OF CERTAIN GOODS AND TECH-
NOLOGY.—The authorities of title III of the Export
Administration Act of 2001 shall be used to prohibit
the export to that country of any goods or technology
on the National Security Control List established
under section 202 of that Act.’’;
(B) in subsection (b)(2)(C) by striking ‘‘sec-
tion 6 of the Export Administration Act of
1979’’ and inserting ‘‘title III of the Export Ad-
ministration Act of 2001’’; and
(C) in subsection (e)(1)(B)—
(i) in the first sentence, by striking
‘‘subsection (p) of section 6 of the Export
Administration Act of 1979 (50 U.S.C.
App. 2405), as that subsection is so redesig-
nated by section 304(b) of this title, which
are applicable to exports prohibited under
section 6 of that Act’’ and inserting ‘‘section
301(d) of the Export Administration Act of
2001, which are applicable to exports pro-
hibited under title III of that Act’’; and
(ii) in the last sentence, by striking ‘‘a
breach of the peace that poses a serious and
direct threat to the strategic interest of the
United States, within the meaning of sub-
216
paragraph (A) of section 6(p) of that Act’’
and inserting ‘‘a serious threat to a foreign
policy interest of the United States, within
the meaning of section 301(d)(2)(A) of the
Export Administration Act of 2001’’.
(17) Section 1705(c)(1) of the Cuban Democracy
Act of 1992 (22 U.S.C. 6004(c)(1)) is amended by
striking ‘‘5(m) of the Export Administration Act of
1979’’ and inserting ‘‘204(a) of the Export Adminis-
tration Act of 2001’’.
(18)(A) Section 6(2)(i) of the Iran and Libya
Sanctions Act of 1996 (50 U.S.C. 1701 note) is
amended by striking ‘‘1979’’ and inserting ‘‘2001’’.
(B) Section 8(a)(2) of the Iran and Libya Sanc-
tions Act of 1996 is amended by striking ‘‘6(j) of the
Export Administration Act of 1979’’ and inserting
‘‘310 of the Export Administration Act of 2001’’.
(C) Section 14 of the Iran and Libya Sanctions
Act of 1996 is amended—
(i) in paragraph (3), by striking ‘‘(50
U.S.C. App. 2410a(e)(1))’’ and inserting ‘‘(as in
effect on August 20, 2001)’’;
(ii) in paragraph (6), by striking ‘‘(50
U.S.C. App. 2410a(e)(2))’’ and inserting ‘‘(as in
effect on August 20, 2001)’’; and
217
(iii) in paragraph (8), by striking ‘‘(50
U.S.C. App. 2415)’’ and inserting ‘‘(as in effect
on August 20, 2001)’’.
(19) Section 1133(a)(3) of the Food Security Act
of 1985 (7 U.S.C. 1736y(3)) is amended by striking
‘‘Export Administration Act’’ and inserting ‘‘Inter-
national Emergency Economic Powers Act or in time
of war under the Trading with the Enemy Act’’.
(20) Section 208(a) of the Agricultural Trade
Suspension Adjustment Act of 1980 (7 U.S.C.
4001(a)) is amended by striking ‘‘for reasons of na-
tional security or foreign policy under the Export Ad-
ministration Act of 1979’’ and inserting ‘‘under title
II or III of the Export Administration Act of 2001’’.
(21) Section 411(a)(1) of the Agricultural Trade
Act of 1978 (7 U.S.C. 5671(a)(1)) is amended by
striking ‘‘for reasons of national security or foreign
policy under the Export Administration Act of 1979
(50 U.S.C. App. 2401 et seq.)’’ and inserting ‘‘under
title II or III of the Export Administration Act of
2001’’.
(22) Section 302(e) of the Bill Emerson Human-
itarian Trust Act (7 U.S.C. 1736f–1(e)) is amended—
(A) by striking ‘‘shall not be—
‘‘(1) considered’’
218
and inserting ‘‘shall not be considered’’; and
(B) by striking ‘‘; and
‘‘(2) subject’’
and all that follows through the end and insert-
ing a period.
(23)(A) Section 951(e)(2)(B) of title 18, United
States Code, is amended by striking ‘‘or under section
11 of the Export Administration Act of 1979’’ and in-
serting ‘‘, under section 11 of the Export Administra-
tion Act of 1979 (prior to its repeal by the Export
Administration Act of 2001), or under section 503 of
the Export Administration Act of 2001’’.
(B) Section 1956(c)(7)(D) of title 18, United
States Code, is amended by striking ‘‘section 11 (re-
lating to violations) of the Export Administration Act
of 1979’’ and inserting ‘‘section 503 (relating to pen-
alties) of the Export Administration Act of 2001’’.
(C) Section 2332d(a) of title 18, United States
Code, is amended by striking ‘‘section 6(j) of the Ex-
port Administration Act (50 U.S.C. App. 2405)’’ and
inserting ‘‘section 310 of the Export Administration
Act of 2001’’.
(24)(A) Section 130(a) of title 10, United States
Code, is amended by striking ‘‘1979 (50 U.S.C. App.
2401–2420)’’ and inserting ‘‘2001’’.
219
(B) Section 2249a(a)(1) of title 10, United
States Code, is amended by striking ‘‘6(j)(1)(A) of the
Export Administration Act of 1979 (50 U.S.C. App.
2405(j))’’ and inserting ‘‘310(a)(1)(A) of the Export
Administration Act of 2001’’.
(C) Section 2327(b)(2) of title 10, United States
Code, is amended by striking ‘‘6(j)(1)(A) of the Ex-
port Administration Act of 1979 (50 U.S.C. App.
2405(j)(1)(A))’’ and inserting ‘‘310(a)(1)(A) of the
Export Administration Act of 2001’’.
(D) Section 2410i(a) of title 10, United States
Code, is amended by striking ‘‘3(5)(A) of the Export
Administration Act of 1979 (50 U.S.C. App.
2402(5)(A))’’ and inserting ‘‘502(a) of the Export Ad-
ministration Act of 2001’’.
(25) Section 233 of the Trade Expansion Act of
1962 (19 U.S.C. 1864) is amended—
(A) by striking ‘‘(50 U.S.C. App. 2404),’’
and inserting ‘‘(as in effect prior to its repeal by
the Export Administration Act of 2001), any ex-
port control imposed under title II of the Export
Administration Act of 2001,’’; and
(B) by striking ‘‘that section’’ and inserting
‘‘either such section’’.
220
(26) Section 502(b)(2)(F) of the Trade Act of
1974 (19 U.S.C. 2462(b)(2)(F)) is amended by strik-
ing ‘‘6(j)(1)(A) of the Export Administration Act of
1979’’ and inserting ‘‘310(a)(1) of the Export Admin-
istration Act of 2001’’.
(27) Section 133 of the Uruguay Round Agree-
ments Act (19 U.S.C. 3553) is amended by striking
‘‘section 8(a) of the Export Administration Act of
1979 (50 U.S.C. App. 2407(a)) (as in effect on Au-
gust 20, 1994)’’ and inserting ‘‘section 502 of the Ex-
port Administration Act of 2001’’.
(28) Section 901(j)(2)(A)(iv) of the Internal Rev-
enue Code of 1986 (26 U.S.C. 901(j)(2)(A)(iv)) is
amended by striking ‘‘6(j) of the Export Administra-
tion Act of 1979, as amended’’ and inserting ‘‘310 of
the Export Administration Act of 2001’’.
(29) Section 927(a)(2) of the Internal Revenue
Code of 1986 (26 U.S.C. 927(a)(2)) is amended—
(A) in subparagraph (C), by adding ‘‘or’’
after the comma;
(B) by striking subparagraph (D);
(C) by redesignating subparagraph (E) as
subparagraph (D); and
(D) by striking ‘‘subparagraph (E)’’ and
inserting ‘‘subparagraph (D)’’.
221
(30) Section 943(a)(3) of the Internal Revenue
Code of 1986 (26 U.S.C. 943(a)(3)) is amended—
(A) in suparagraph (C), by adding ‘‘or’’
after the comma;
(B) by striking subparagraph (D);
(C) by redesignating subparagraph (E) as
subparagraph (D); and
(D) by striking ‘‘subparagraph (E)’’ and
inserting ‘‘subparagraph (D)’’.
(31) Section 993(c)(2) of the Internal Revenue
Code of 1986 (26 U.S.C. 993(c)(2)) is amended—
(A) in subparagraph (C), by adding ‘‘or’’
after the comma;
(B) by striking subparagraph (D);
(C) by redesignating subparagraph (E) as
subparagraph (D); and
(D) by striking ‘‘subparagraph (E)’’ and
inserting ‘‘subparagraph (D)’’.
(32) Section 254(e)(3) of the Energy Policy and
Conservation Act (42 U.S.C. 6274(e)(3)) is amended
by striking ‘‘12 of the Export Administration Act of
1979’’ and inserting ‘‘602 of the Export Administra-
tion Act of 2001’’.