I
103D CONGRESS
2D SESSION
H. R. 4663
To provide authority to control exports, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 28, 1994
Mr. HAMILTON introduced the following bill; which was referred to the
Committee on Foreign Affairs
A BILL
To provide authority to control exports, and for other
purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Omnibus Export
Administration Act of 1994’’.
SEC. 2. TABLE OF CONTENTS.
The table of contents of this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I—EXPORT ADMINISTRATION
Sec. 101. Short title.
Sec. 102. Findings.
Sec. 103. Policy statement.
Sec. 104. General provisions.
Sec. 105. Multilateral controls.
Sec. 106. Emergency controls.
Sec. 107. Short supply controls.
Sec. 108. Foreign boycotts.
Sec. 109. Procedures for processing export license applications; other inquiries.
Sec. 110. Violations.
Sec. 111. Controlling proliferation activity.
Sec. 112. Administrative and judicial review.
Sec. 113. Enforcement.
Sec. 114. Export control authorities and procedures.
Sec. 115. Annual report.
Sec. 116. Definitions.
Sec. 117. Effects on other Acts.
Sec. 118. Secondary Arab boycott.
Sec. 119. Authorization of appropriations.
Sec. 120. Conforming amendments to other laws.
Sec. 121. Effective date.
Sec. 122. Expiration date.
Sec. 123. Savings provision.
TITLE II—NUCLEAR PROLIFERATION PREVENTION ACT
Sec. 201. Short title.
PART A—REPORTING ON NUCLEAR EXPORTS
Sec. 211. Reports to Congress.
Sec. 212. Effective date.
PART B—SANCTIONS FOR NUCLEAR PROLIFERATION
Sec. 221. Imposition of sanctions on persons engaging in export activities that
contribute to proliferation.
Sec. 222. Eligibility for assistance.
Sec. 223. Role of international financial institutions.
Sec. 224. Prohibition on assisting nuclear proliferation through the provision of
financing.
Sec. 225. Export-Import Bank.
Sec. 226. Sanctions against countries involved in transfer of nuclear weapons
or design information or components.
Sec. 227. Amendment to the Arms Export Control Act.
Sec. 228. Reward.
Sec. 229. Reports.
Sec. 230. Technical correction.
Sec. 231. Definitions.
Sec. 232. Effective date.
PART C—INTERNATIONAL ATOMIC ENERGY AGENCY
Sec. 241. Bilateral and multilateral initiatives.
Sec. 242. IAEA internal reforms.
Sec. 243. Reporting requirement.
Sec. 244. Definitions.
PART D—REPEAL OF DUPLICATIVE PROVISIONS
Sec. 251. Repeal.
TITLE I—EXPORT
ADMINISTRATION
SEC. 101. SHORT TITLE.
This title may be cited as the ‘‘Export Act of 1994’’.
SEC. 102. FINDINGS.
The Congress makes the following findings:
(1) Export controls are a part of a comprehen-
sive response to national security threats. United
States exports should be restricted only for critical
national security, nonproliferation, and foreign policy
reasons.
(2) Exports of certain commodities and tech-
nology may adversely affect the national security of
the United States by making a direct and significant
contribution to the military potential of individual
countries or by disseminating the capability to
produce or use weapons of mass destruction. There-
fore, the administration of export controls should
emphasize the control of these exports.
(3) The acquisition of dual use commodities
and technology by those countries and end users
whose actions or policies run counter to United
States national security interests may enhance the
military capabilities of those countries, particularly
their ability to produce and deliver nuclear, chemi-
cal, and biological weapons. This enhancement
threatens the security of the United States and its
allies, and places additional demands on the defense
budget of the United States. Availability to certain
countries and end users of items that contribute to
certain military capabilities or the proliferation of
weapons of mass destruction is a fundamental con-
cern of the United States and should be eliminated
through negotiations and other appropriate means
whenever possible.
(4) Exporting is critical to the economic health
of the United States and, therefore, to its national
security as well. With the growing importance of ex-
ports to sustained United States economic growth
and vitality, restrictions on exports must be evalu-
ated in terms of their effects on the United States
economy as well as on its national security. Restric-
tions on exports from the United States have had se-
rious adverse effects on economic competitiveness
and domestic employment, particularly when re-
straints applied by the United States have been
more extensive than those imposed by other coun-
tries or when United States export control policy is
uncertain.
(5) Export controls cannot be the sole instru-
ment of the United States to prevent a country or
end user from developing weapons of mass destruc-
tion. For this reason, export controls should be ap-
plied as part of a comprehensive response to security
threats.
(6) The national security of the United States
depends not only on wise foreign policies and a
strong defense, but also a vibrant national economy.
To be truly effective, export controls should be ap-
plied uniformly by all suppliers.
(7) Effective export controls also must be fo-
cused only on those items that materially contribute
to a country’s or an end user’s military potential or
potential to produce or use weapons of mass destruc-
tion.
(8) Unilateral export controls are generally not
effective in influencing the behavior of other govern-
ments or impeding access to controlled countries of
controlled items. In most situations, unilateral con-
trols alone impede access to United States sources
of supply without affecting the ability of controlled
countries to obtain controlled items elsewhere. More-
over, unilateral controls permit foreign competitors
to serve markets the United States Government de-
nies to United States firms and workers, thus im-
pairing the reliability of United States suppliers in
comparison with their foreign competitors. At the
same time, the need to lead the international com-
munity or overriding national security or foreign pol-
icy interests may justify unilateral controls in spe-
cific cases.
(9) The United States recognizes the impor-
tance of comprehensive enforcement measures to
maximize the effectiveness of multilateral controls.
(10) The United States’ export control system
must not be overly restrictive or bureaucratic, or un-
dermine the competitive position of American indus-
try. The export control system must be efficient, re-
sponsive, transparent, and effective.
(11) Export restrictions that negatively affect
the United States industrial base ultimately weaken
United States military capabilities and lead to de-
pendencies on foreign sources for key components.
(12) Minimization of restrictions on exports of
agricultural commodities and products is of critical
importance to the maintenance of a sound agricul-
tural sector, to a positive contribution to the balance
of payments, to reducing the level of Federal ex-
penditures for agricultural support programs, and to
United States cooperation in efforts to eliminate
malnutrition and world hunger.
SEC. 103. POLICY STATEMENT.
It is the policy of the United States to do the follow-
ing:
(1) To stem the proliferation of weapons of
mass destruction and the means to deliver them
by—
(A) leading international efforts to control
the proliferation of chemical, biological, and nu-
clear weapons and missiles;
(B) controlling involvement of United
States persons in, and contributions by United
States persons to, foreign programs intended to
develop weapons of mass destruction or missiles
and the means to design, develop, produce,
stockpile, or use them; and
(C) implementing international treaties or
other agreements that require controls on ex-
ports of designated items, reports on the pro-
duction, processing, consumption, and exports
of such items, and compliance with verification
programs.
(2) To restrict the export of items that would
directly and significantly contribute to the military
potential of countries so as to pose a threat to the
national security of the United States or its allies.
(3) To—
(A) minimize uncertainties in export con-
trol policy; and
(B) encourage trade with all countries with
which the United States has diplomatic or trad-
ing relations, except those countries with which
such trade has been determined by the Presi-
dent to be against the national interest, and to
strongly encourage the trading partners of the
United States not to trade with those other
countries.
(4) To restrict export trade when necessary to
protect the domestic economy from the excessive
drain of scarce materials and to reduce the serious
inflationary impact of foreign demand.
(5) To increase the effectiveness of and the reli-
ance of the United States upon multilateral coordi-
nation of controls through effective export control
regimes that—
(A) clearly identify countries and entities
to which, and end uses for which, exports of
items are to be controlled,
(B) incorporate lists of controlled items
that are critical to the control objectives,
(C) establish uniform criteria and proce-
dures for licensing, and
(D) implement means to curtail member
countries from granting licenses that render in-
effective license denials by the United States.
(6) To impose unilateral controls, under the
procedures and conditions set forth in section 106,
only when it is essential to the national security or
foreign policy of the United States, and only after
full consideration of the economic impact of the con-
trols and their effectiveness in achieving their in-
tended objectives.
(7) To make all licensing determinations in a
timely manner so undue delays in the licensing proc-
ess will not cause a United States firm to lose an
export sale.
(8) To maintain a presumption of approval of
license applications for authority to export items for
civil end use.
(9) To use export controls to encourage other
countries to take immediate steps to prevent the use
of their territories or resources to aid, encourage, or
give sanctuary to those persons involved in directing,
supporting, or participating in acts of international
terrorism.
(10)(A) To counteract restrictive trade prac-
tices or boycotts fostered or imposed by foreign
countries against other countries friendly to the
United States or against any United States person.
(B) To encourage and, in specified cases, re-
quire United States persons engaged in the export of
commodities, technology, and other information to
refuse to take actions, including furnishing informa-
tion or entering into or implementing agreements,
which have the effect of furthering or supporting the
restrictive trade practices or boycotts fostered or im-
posed by any foreign country against a country
friendly to the United States or against any United
States person.
(11) To consolidate export control functions
and increase administrative accountability, and
thereby better serve the exporting public by reducing
and eliminating overlapping, conflicting, and incon-
sistent regulatory burdens.
(12) To minimize restrictions on the export of
agricultural commodities and products.
SEC. 104. GENERAL PROVISIONS.
(a) TYPES OF LICENSES.—Under such conditions as
the Secretary may impose, consistent with the provisions
of this title, and subject to paragraph (2)(B), the Sec-
retary may require the following types of licenses for ex-
ports of commodities and technology controlled under this
title:
(1) SPECIFIC EXPORTS AND REEXPORTS.—An
individual validated license, authorizing a specific ex-
port.
(2) MULTIPLE EXPORTS AND REEXPORTS.—(A)
Validated licenses authorizing multiple exports, in
lieu of an individual validated license for each such
export.
(B)(i) A distribution license, authorizing mul-
tiple exports of general application computers to any
country other than a sanctioned country. The Sec-
retary shall grant such distribution licenses strictly
on the basis of the reliability of the applicant and
foreign consignees with respect to the prevention of
diversion of commodities or technology, consistent
with section 105(a)(1). Not later than 30 days after
an application is submitted under section 109 for
such a distribution license to export general applica-
tion computers, the Secretary shall grant the license
with respect to such distributors and end users that
the Secretary determines to be reliable. The Sec-
retary may deny the license application with respect
to those distributors and end users that present a
risk of diversion of commodities or technology, di-
rectly or indirectly, consistent with the provisions of
section 105(a)(1).
(ii) For purposes of this subparagraph, a ‘‘sanc-
tioned country’’ is any country—
(I) the government of which the Secretary
of State has determined to be a government
that has repeatedly provided support for acts of
international terrorism; or
(II) against which the United States main-
tains an embargo on all, or substantially all, ex-
ports pursuant to the International Emergency
Economic Powers Act or the Trading With The
Enemy Act.
(iii) For purposes of this subparagraph, the
term ‘‘general application computers’’ means any
computer sustem, computer networking equipment,
peripheral to a computer system, or combination
thereof, on which export controls are in effect under
section 105, except the following:
(I) Supercomputers.
(II) Computers specially designed for use
in connection with the capability described in
subparagraph (A) or (B) of section 105(a)(1).
(III) Computers specially designed for use
in connection with the surreptitious interception
of wire or oral communications.
(b) GENERAL PROHIBITION.—Notwithstanding any
other provision of this title, no person may export any item
which such person knows will materially contribute to a
program or activity for the design, development, or manu-
facture of a weapon of mass destruction or missile in a
country that is not a member of, or a cooperating country
with respect to, an export control regime controlling such
weapon or missile.
(c) UNITED STATES COMMODITY CONTROL INDEX.—
(1) IN GENERAL.—The Secretary shall—
(A) establish and maintain a United States
Commodity Control Index which shall identify
all commodities and technology on which con-
trols are imposed under this title;
(B) specify the license requirements appli-
cable to the items on the control index; and
(C) designate countries, and end uses or
end users, to which exports of commodities and
technology are controlled.
(2) CONTENTS.—The control index shall—
(A) consist of a security control list of all
commodities and technology on which export
controls are imposed under section 105, an
emergency control list of all commodities and
technology on which export controls are im-
posed under section 106, a short supply control
list of all commodities on which export controls
are imposed under section 107;
(B) for each item on the control index,
specify with particularity the performance
(where applicable) and other identifying charac-
teristics of the item and provide a rationale for
why the item is on the control list;
(C) identify countries, and end uses or end
users, to which exports are controlled, including
specific projects and end users of concern,
cross-referenced with the list of commodities
and technology on which export controls are im-
posed; and
(D) be sufficiently specific and clear as to
guide exporters and licensing officers in deter-
minations of licensing requirements under this
title.
(3) LICENSING OF CONTROL INDEX COMMOD-
ITIES AND TECHNOLOGY.—A validated license may
be required for the export of those commodities and
technology that are specifically and clearly identified
on the control index to countries, end uses, and end
users so designated on the control index. No author-
ity or permission may be required to export com-
modities and technology not so identified to any
country, end use, or end user not so designated.
(d) DELEGATION OF AUTHORITY.—Subject to the
provisions of this title, the President may delegate the
power, authority, and discretion conferred upon the Presi-
dent by this title to such departments, agencies, and offi-
cials of the Government as the President considers appro-
priate, except that no authority under this title may be
delegated to, or exercised by, any official of any depart-
ment or agency the head of which is not appointed by the
President, by and with the advice and consent of the Sen-
ate. The President may not delegate or transfer his power,
authority, or discretion to overrule or modify any rec-
ommendation or decision made by the Secretary, the Sec-
retary of Defense, or the Secretary of State under this
title and may not delegate the authority under section
106(a)(4).
(e) NOTIFICATION OF THE PUBLIC; CONSULTATION
WITH BUSINESS.—The Secretary shall keep the public
fully apprised of changes in export control policy and pro-
cedures instituted in conformity with this title with a view
to encouraging trade. The Secretary shall consult regu-
larly with representatives of a broad spectrum of enter-
prises, labor organizations, and citizens interested in or
affected by export controls, in order to obtain their views
on United States export control policy and the foreign
availability of items subject to controls.
(f) EXPORT ADVISORY COMMITTEES.—
(1) APPOINTMENT.—Upon his or her own ini-
tiative or upon the written request of representatives
of a substantial segment of any industry which pro-
duces any items subject to export controls under this
title or being considered for such controls, the Sec-
retary shall appoint export advisory committees with
respect to any such items. Each such committee
shall consist of representatives of United States in-
dustry and Government, including the Department
of Commerce and other appropriate departments
and agencies of the Government. The Secretary shall
permit the widest possible participation by the busi-
ness community on the export advisory committees.
(2) FUNCTIONS.—Export advisory committees
appointed under paragraph (1) shall advise and as-
sist the Secretary, and any other department, agen-
cy, or official of the Government carrying out func-
tions under this title, on actions (including all as-
pects of controls imposed or proposed) designed to
carry out the policies of this title concerning the
items with respect to which such export advisory
committees were appointed. Such committees, where
they have expertise in such matters, shall be con-
sulted on questions involving—
(A) technical matters,
(B) worldwide availability and actual utili-
zation of production technology,
(C) licensing procedures which affect the
level of export controls applicable to any items,
(D) revisions of the security control list (as
provided in section 105(j)), including proposed
revisions of multilateral controls in which the
United States participates,
(E) the issuance of regulations,
(F) the impact and interpretation of exist-
ing regulations,
(G) processes and procedures for review of
licenses and policy,
(H) any other questions relating to actions
designed to carry out this title, and
(I) the operation and conduct of inter-
national business transactions.
Nothing in this subsection shall prevent the United
States Government from consulting, at any time,
with any person representing an industry or the gen-
eral public, regardless of whether such person is a
member of an export advisory committee. Members
of the public shall be given a reasonable opportunity,
pursuant to regulations prescribed by the Secretary,
to present evidence to such committees.
(3) REIMBURSEMENT
OF
EXPENSES.—Upon
the request of any member of any export advisory
committee appointed under paragraph (1), the Sec-
retary may, if the Secretary determines it to be ap-
propriate, reimburse such member for travel, sub-
sistence, and other necessary expenses incurred by
such member in connection with the duties of such
member.
(4) CHAIRPERSON.—Each export advisory com-
mittee appointed under paragraph (1) shall elect a
chairperson, and shall meet at least every 3 months
at the call of the chairperson, unless the chairperson
determines, in consultation with the other members
of the committee, that such a meeting is not nec-
essary to achieve the purposes of this subsection.
Each such committee shall be terminated after a pe-
riod of 2 years, unless extended by the Secretary for
additional periods of 2 years each. The Secretary
shall consult each such committee on such termi-
nation or extension of that committee.
(5) ACCESS
TO
INFORMATION.—To facilitate
the work of the export advisory committees ap-
pointed under paragraph (1), the Secretary, in con-
junction with other departments and agencies par-
ticipating in the administration of this title, shall
disclose to each such committee adequate informa-
tion, consistent with national security, pertaining to
the reasons for the export controls which are in ef-
fect or contemplated for the items or policies for
which that committee furnishes advice.
(6) POLICY ADVICE.—The Secretary shall ap-
point a group of knowledgeable individuals from
businesses affected by export controls to provide ad-
vice to the Secretary on export control policy issues.
The chairperson of such group shall represent export
advisory committees regarding review of control lists
maintained by export control regimes and United
States proposals to export control regimes.
(g) DEVELOPMENT AND REVIEW OF THE CONTROL
LIST.—The Secretary of State, in consultation with ap-
propriate departments and agencies, shall be responsible
for conducting negotiations with other countries regarding
multilateral arrangements for restricting the export of
items to carry out the policies of this title. All appropriate
departments and agencies shall consult among themselves
and with the appropriate export advisory committees ap-
pointed under subsection (f) to develop initial technical pa-
rameters and product definitions in connection with the
development of proposals within the United States Gov-
ernment to be made to multilateral regimes.
(h) RIGHT OF EXPORT.—No authority or permission
to export may be required under this title, or under regula-
tions issued under this title, except to carry out the poli-
cies set forth in section 103.
(i) INTERNATIONAL OBLIGATIONS UNDER TREA-
TIES.—Notwithstanding any other provision of this title
containing limitations on authority to control exports, the
Secretary, in consultation with the Secretary of State, may
impose controls on exports to a particular country or coun-
tries in order to fulfill obligations of the United States
under resolutions of the United Nations and under trea-
ties to which the United States is a party.
(j) FEES.—No fee may be charged in connection with
the submission or processing of an export license applica-
tion under this title.
SEC. 105. MULTILATERAL CONTROLS.
(a) AUTHORITY.—
(1) IN GENERAL.—In order to carry out the
policies set forth in paragraphs (1), (2), and (5) of
section 103, the President may, in accordance with
this section, prohibit or curtail the export of any
commodities or technology subject to the jurisdiction
of the United States, or exported by any person sub-
ject to the jurisdiction of the United States, if such
commodities or technology—
(A) would directly and significantly enable
a country or end user to acquire the capability
to develop, produce, stockpile, use, or deliver
weapons of mass destruction; or
(B) would directly and significantly con-
tribute to the military capability of a country so
as to pose a threat to the national security of
the United States or its allies.
(2) EXERCISE OF AUTHORITY.—The authority
granted by this subsection shall be implemented by
means of export licenses required by the Secretary.
(3) CONSISTENCY WITH EXPORT CONTROL RE-
GIMES.—Any provision of this title that provides
that no authority or permission to export may be re-
quired under this section shall not apply to the ex-
tent that the applicable export control regime pro-
vides otherwise.
(b) SECURITY CONTROL LIST.—
(1) IN GENERAL.—(A) The Secretary shall, in
consultation with appropriate departments and agen-
cies, establish and maintain, as part of the control
index, a security control list, comprised of all com-
modities and technology on which export controls are
in effect under this section, and the countries, and
end uses or end users, to which the controls apply.
The security control list shall clearly identify the
specific commodities and technology the export of
which is controlled, and each country, and end use
or end user, to which such exports are controlled.
(B) If a determination is made, with respect to
the inclusion of items on the security control list,
that affects the items controlled by an export control
regime, the Secretary of State shall propose to that
regime any revisions that would be necessary as a
result of the determination. Such determination shall
become effective only to the extent such revisions are
agreed to by the export control regime.
(2) CONTROLLED
COMMODITIES
AND
TECH-
NOLOGY.—Export controls shall be imposed under
this section if, and may be imposed under this sec-
tion only if, the export controls are agreed to by an
export control regime which includes export control
purposes, items subject to control, policy of review
for license applications, and all controlled destina-
tions, and end uses or end users.
(3) CONTROLLED COUNTRIES, END USES, AND
END USERS.—A country shall be designated a con-
trolled country, and an end use or end user shall be
designated a controlled end use or controlled end
user, with respect to a particular commodity or tech-
nology on the security control list if exports of such
commodity or technology to such country, end use,
or end user are controlled multilaterally pursuant to
the agreement of an export control regime described
in paragraph (2).
(c) EXPORT LICENSING POLICIES FOR CONTROLLED
COUNTRIES
AND CONTROLLED END USES
OR END
USERS.—
(1) EXPORTS
TO
CONTROLLED
COUNTRIES,
AND END USES OR END USERS.—
(A) IN GENERAL.—The Secretary shall re-
quire authority or permission to export com-
modities and technology on the security control
list to a controlled country, a controlled end
use, or a controlled end user.
(B) PRESUMPTION
OF
APPROVAL
FOR
CIVIL
END
USES.—Subject to subparagraph
(C), applications to export commodities or tech-
nology for civil end uses shall carry a presump-
tion of approval.
(C) PRESUMPTION OF DENIAL FOR CON-
TROLLED END USERS.—Exports to controlled
end users of commodities or technology on
which controls are in effect under this section
shall carry a presumption of denial.
(D) BASIS FOR DENIAL.—Licenses may be
denied under this section only if the commodity
or technology meets the requirements of sub-
paragraph (A) or (B) of subsection (a)(1).
(2) CIVIL
END
USE.—A determination under
paragraph (1)(B) of whether commodities or tech-
nology are for civil end use shall be based on the fol-
lowing criteria:
(A) Whether the stated end use is civil.
(B) Whether the civil application of the
commodities or technology is well established in
countries other than controlled countries.
(C) Whether the commodities or tech-
nology proposed for export are reasonable in
quantity and quality for the proposed end use.
(D) The risk of diversion to an unauthor-
ized user or consignee, including whether such
diversion can be verified.
(d) EXPORT CONTROL REGIMES
AND LICENSING
POLICIES.—For the purposes of creating effective multi-
lateral export controls and strengthening the controls im-
posed by export control regimes, the Secretary of State
shall, with respect to each export control regime, pursue
negotiations with other members of such regime to accom-
plish the following objectives:
(1) Development of a common list of commod-
ities and technology to which export controls are ap-
plied, and a common list of countries, and end uses
or end users, to which exports are controlled, by
members of the regime.
(2) Agreement on the same treatment, to be ap-
plied by all members of the regime, of exports and
reexports to members of the regime, cooperating
countries, and other countries that are not controlled
countries.
(3) National procedures resulting in comparable
implementation and enforcement of export controls
among the members of the regime, including laws
providing appropriate civil and criminal penalties
and statutes of limitations sufficient to deter poten-
tial violations.
(4) Periodic meetings of high-level representa-
tives of governments participating in the regime for
the purpose of coordinating national export control
policies and issuing policy guidance for dissemina-
tion to exporters in participating countries.
(5) Establishment of procedures for regular
consultation among members of the regime on pro-
posed export license applications that includes con-
sultation with individuals with sufficient technical
expertise to assess the licensing status of exports
and to ensure the reliability of end users.
(6) An enforcement mechanism that provides
authority for adequately trained enforcement officers
to investigate and prevent illegal exports.
(7) Development of a system of export control
documentation to verify the movement of commod-
ities and technology.
(8) Establishment of procedures for the coordi-
nation and sharing of information on licensing, end
users, and enforcement.
(9) The application of adequate national re-
sources to carry out paragraphs (1) through (8).
(e) INCENTIVES FOR COUNTRIES TO PARTICIPATE IN
OR COOPERATE WITH EXPORT CONTROL REGIMES.—
(1) GENERAL RULE FOR REGIMES.—Unless the
Secretary, in consultation with the Secretary of
State, determines that an existing export control re-
gime has failed to meet the objectives set forth in
subsection (d), exports to all countries that are
members of, or cooperating countries with respect
to, that regime shall be subject to the licensing
treatment set forth in this subsection. The Secretary
shall publish each determination under this para-
graph in the Federal Register.
(2) FAVORABLE LICENSING TREATMENT.—Sub-
ject to paragraphs (3) and (4), unless an export con-
trol regime is the subject of a determination under
paragraph (1), no authority or permission may be
required for exports of any commodity or technology
controlled by that regime to or among members of
that regime or cooperating countries with respect to
that regime.
(3) EXCEPTION.—If the Secretary determines
that a member of an export control regime, a co-
operating country with respect to such regime, or an
end user in a country that is such a regime member
or in such a cooperating country is engaging in a
pattern and practice of noncompliance with controls
agreed to by the regime—
(A) if the license treatment under para-
graph (2) is provided by the United States uni-
laterally, the Secretary shall terminate such
treatment with respect to that noncomplying
member, cooperating country, or end user dur-
ing the period in which the determination is in
effect; or
(B) in any other case the Secretary shall
seek a similar determination by the other mem-
bers of the regime concerning such noncompli-
ance and, if such a determination is made, the
Secretary shall propose the suspension of favor-
able licensing treatment of exports to that non-
complying regime member, cooperating country,
or end user by all members of the regime dur-
ing the period in which that determination is in
effect.
(4) EXCEPTION
FOR
EXPORTS
TO
CERTAIN
COUNTRIES.—(A) Should some of the members of
an export control regime decide to require licenses
for the export to other members of the regime or to
cooperating countries of certain items controlled by
the regime, the United States may require such li-
censes if—
(i) the Secretary determines that a prepon-
derance of the world’s supply of the items in-
volved would be subject to such export license
requirements; or
(ii) after making a determination that a
preponderance of the world’s supply of the
items involved would not be subject to such ex-
port license requirements, the Secretary, in con-
sultation with the Secretary of State and the
Secretary of Defense, determines that the ab-
sence of a requirement of export licenses for
such items to such members of the regime or
cooperating countries would prove detrimental
to the national security of the United States.
In any case in which the Secretary makes a deter-
mination under clause (ii), the Secretary shall pub-
lish that determination, together with a concise
statement of its basis and the estimated impact of
the determination.
(B) The Secretary shall notify the Congress at
least 30 days before a license requirement described
in subparagraph (A) goes into effect.
(f) CREATION AND ENHANCEMENT OF MULTILAT-
ERAL CONTROL REGIMES.—
(1) EXPANSION
OF
MEMBERSHIP
OF
RE-
GIMES.—For each existing export control regime and
for each export control regime the United States
seeks to create, the Secretary of State, in consulta-
tion with the Secretary, shall seek—
(A) to expand the membership of the re-
gime to include all countries that produce or ex-
port items controlled pursuant to agreement by
the regime and share the objectives of the re-
gime;
(B) the adoption of procedures for effective
implementation of the rules and guidelines of
the regime through uniform and consistent in-
terpretations of export controls agreed to by the
regime;
(C) agreement to create a secretariat, for
each regime that seeks the prevention of the
proliferation of weapons of mass destruction or
missiles, that would call regular meetings of
members of the regime and establish rules for
the regime; and
(D) agreement within each regime not to
render ineffective the denial of licenses by other
regime members and to establish procedures for
the coordination and regular exchange of infor-
mation about such denials.
(2) TERRORIST
THREATS
TO
REGIME
MEM-
BERS.—
(A) PRESUMPTION
OF
DENIAL
FOR
LI-
CENSES.—For each existing export control re-
gime and for each export control regime the
United States seeks to create, the Secretary of
State, in consultation with the Secretary, shall
pursue negotiations with other members of such
regime to establish a presumption of denial for
licenses for exports that would directly contrib-
ute to acts of terrorism directed at 1 or more
regime members.
(B) REPORTS
TO
CONGRESS.—The Sec-
retary shall annually report to the Committee
on Foreign Affairs of the House of Representa-
tives and the Committee on Banking, Housing,
and Urban Affairs of the Senate on the
progress made toward meeting the objectives
set forth in subparagraph (A).
(3) DISCLOSURE OF NONPROPRIETARY INFOR-
MATION.—The Secretary of State shall propose the
following to each export control regime:
(A) Full disclosure on a confidential basis
to 
all 
members 
of 
the 
regime 
of 
all
nonproprietary information relating to all li-
censes granted for the export of items con-
trolled by the regime, consistent with the pro-
tection of intelligence sources and methods.
(B) A list of controlled items of particular
sensitivity for which such disclosure shall be
given 15 days before the license is issued.
(g) TRANSPARENCY
OF MULTILATERAL CONTROL
REGIMES.—
(1) PUBLICATION OF INFORMATION ON EACH
EXISTING REGIME.—Within 6 months after the date
of the enactment of this Act, the Secretary shall
publish in the Federal Register the following infor-
mation with respect to export controls agreed to by
each multilateral control regime existing on the date
of the enactment of this Act:
(A) Purposes of the controls.
(B) Members of the regime.
(C) Licensing policy.
(D) Items subject to the controls, together
with all public notes, understandings, and other
aspects of the agreement of the regime, and all
changes thereto.
(E) Controlled countries, controlled end
uses, and, to the extent not inconsistent with
requirements of the regime, controlled end
users.
(F) Rules of interpretation.
(G) Major policy actions.
(H) The rules and procedures of the re-
gime for establishing and modifying any matter
described in subparagraphs (A) through (G)
and for reviewing export license applications.
(2) INFORMATION
REGARDING
CONTROLLED
END USERS.—The United States shall propose to
each export control regime to permit a member of
the regime to publish the controlled end users (in-
cluding projects of concern) agreed to by the regime.
(3) NEW
REGIMES.—Within 2 months after
joining or organizing a new export control regime,
the Secretary shall publish the information described
in subparagraphs (A) through (H) of paragraph (1).
(4) PUBLICATION OF CHANGES.—The Secretary
shall publish in the Federal Register any changes in
the information published under this subsection
within 2 months after the applicable regime adopts
such changes.
(h) EFFECTIVENESS OF MULTILATERAL CONTROL
REGIMES AND IMPLEMENTATION BY THEIR MEMBERS.—
(1) ANNUAL EVALUATION.—At least once each
year, the Secretary shall evaluate the effectiveness of
each export control regime and the effectiveness of
the implementation of the regime by each of its
members, including the United States. Such evalua-
tion shall be included in the annual report issued
under section 115.
(2) CONTENTS.—The evaluation under para-
graph (1) shall include the following for the calendar
year for which the report is issued:
(A) Items not controlled by the export con-
trol regime that the United States believes
should be controlled if the regime is to achieve
its control purposes effectively.
(B) Countries that are sources of foreign
availability for each item controlled by agree-
ment of the regime. Such countries shall in-
clude members of the regime, cooperating coun-
tries with respect to the regime, and countries
that are not members of the regime.
(C) Countries that are risks for diverting
controlled items to controlled countries, end
uses, or end users.
(D) Members of the regime that have not,
in the judgment of the Secretary, implemented
the objectives set forth in subsection (d).
(E) The extent to which the regime and
each of its members have adopted and are im-
plementing uniform licensing policies.
(F) The extent to which the licensing pol-
icy of the regime and each of its members ade-
quately prevents the export licensing decisions
of one member of the regime from rendering in-
effective the denial of license applications by
another member.
(3) COMMENTS.—Before beginning each evalua-
tion under this subsection, the Secretary shall re-
quest comments from the public and the export advi-
sory committees appointed under section 104(f) re-
garding the effectiveness of each export control re-
gime. The Secretary shall give the public at least 30
days to provide comments under this paragraph.
(i) FOREIGN AVAILABILITY.—
(1) FOREIGN
AVAILABILITY
TO
CONTROLLED
COUNTRIES.—
(A) IN GENERAL.—The Secretary, in con-
sultation with the Secretary of Defense, other
appropriate Government departments and agen-
cies, and appropriate export advisory commit-
tees appointed under section 104(f), shall re-
view, on a continuing basis, the availability of
controlled items to controlled countries from
sources outside the United States, including
countries that participate with the United
States in export control regimes.
(B) ITEMS CONTROLLED BY COCOM.—(i)
In any case in which the Secretary determines
under paragraph (3), in accordance with proce-
dures and criteria which the Secretary shall es-
tablish by regulation, that any item controlled
for export pursuant to the agreement of
COCOM is available in fact, or will be available
in fact within 2 years in the future, to con-
trolled countries from sources outside the Unit-
ed States in sufficient quantity and of com-
parable quality so that the requirement of a
validated license for the export of such item is
or would be ineffective in achieving the pur-
poses of this section—
(I) the President shall propose to
COCOM that export controls on such item
be eliminated, or
(II) if the President determines that
the absence of export controls on the item
would prove detrimental to the national se-
curity of the United States, the President
shall actively pursue negotiations with the
governments of the appropriate foreign
countries for the purpose of eliminating
such availability.
No later than the commencement of such nego-
tiations, the President shall notify in writing
the Committee on Banking, Housing, and
Urban Affairs of the Senate and the Committee
on Foreign Affairs of the House of Representa-
tives that the President has begun such nego-
tiations and why the President believes it is im-
portant to the national security that export con-
trols on the item involved be maintained.
(ii) If, within 6 months after the Presi-
dent’s determination under clause (i)(II) that
export controls be maintained notwithstanding
foreign availability, the foreign availability has
not been eliminated, the Secretary may not,
after the end of that 6-month period, require a
validated license for the export of the item in-
volved. The President may extend the 6-month
period for an additional period of 12 months if
the President certifies to the Congress that the
negotiations involved are progressing and that
the absence of the export controls involved
would prove detrimental to the national security
of the United States.
(C) ITEMS
CONTROLLED
BY
OTHER
RE-
GIMES.—(i) In any case in which the Secretary
determines under paragraph (3), in accordance
with procedures and criteria which the Sec-
retary shall establish by regulation, that any
item controlled for export pursuant to an export
control regime other than COCOM is available
in fact, or will be available in fact within 2
years in the future, to controlled countries from
sources outside the United States in sufficient
quantity and of comparable quality so that the
requirement of a validated license for the export
of such item is or would be ineffective in achiev-
ing the purposes of this section, the President
(II) that the members of the regime
impose all of the sanctions described in
clause (iii) on such foreign person or per-
sons.
(iii) The sanctions referred to in clause (ii)
to be imposed on a foreign person or persons
are the following:
(I) A prohibition on the export to
such person or persons of all items con-
trolled by such export control regime.
(II) A prohibition on the import of all
goods that are produced by such person or
persons.
(III) A prohibition on procurement by
such governments of any services, commod-
ities, technology, or other products from or
produced by such person or persons.
(iv) If, within 90 days after a proposal
under clause (ii)(II) regarding sanctions is
made to an export control regime, such regime
has not agreed to such proposal, the President
shall either propose to such regime that the ex-
port controls on the commodities or technology
that are the subject of the foreign availability
determination be eliminated, or report to the
Congress that the President has determined
that elimination of the controls would create a
significant risk to the national security interests
of the United States. Such report shall include
the basis for such determination.
(2) NOTICE OF ALL FOREIGN AVAILABILITY AS-
SESSMENTS.—Whenever the Secretary undertakes a
foreign availability assessment under this subsection,
the Secretary shall publish notice of such assessment
in the Federal Register.
(3) PROCEDURES
FOR
MAKING
DETERMINA-
TIONS.—
(A) PROCEDURES.—(i) The Secretary shall
make a foreign availability determination under
paragraph (1) on the Secretary’s own initiative,
upon the certification of an export advisory
committee appointed under section 104(f) with
respect to the commodities or technology con-
cerning which the certification is made, or upon
receipt of an allegation from an export license
applicant that such availability exists. In mak-
ing any such determination, the Secretary shall
accept the representations of applicants made
in writing and supported by reasonable evi-
dence, unless such representations are contra-
dicted by reliable evidence, including scientific
or physical examination, expert opinion based
upon adequate factual information, or intel-
ligence information.
(ii) In making determinations of foreign
availability, the Secretary may consider such
factors as cost, reliability, the availability and
reliability of spare parts and the cost and qual-
ity thereof, maintenance programs, durability,
quality of end products produced by the item
subject to the determination, and scale of pro-
duction.
(iii) For purposes of this subparagraph,
the term ‘‘evidence’’ may include such items as
foreign manufacturers’ catalogues, brochures,
operations or maintenance manuals, articles
from reputable trade publications, photographs,
and depositions based upon eyewitness ac-
counts.
(B) CERTIFICATIONS
BY
EXPORT
ADVI-
SORY COMMITTEES.—At the same time as an
export advisory committee submits a certifi-
cation to the Secretary under subparagraph
(A)(i), the committee shall submit the certifi-
cation to the Congress. The Secretary shall in-
vestigate the foreign availability so certified
and, not later than 90 days after the certifi-
cation is made, shall submit a report to the ex-
port advisory committee and the Congress stat-
ing that—
(i) the foreign availability does exist,
and the applicable steps are being taken
under paragraph (1); or
(ii) the foreign availability does not
exist.
To the extent necessary, the report may be sub-
mitted on a classified basis.
(C) ALLEGATIONS
BY
EXPORT
LICENSE
APPLICANTS.—Within 4 months after receiving
an allegation described in subparagraph (A)(i)
from an export license applicant, the Secretary
shall determine whether the foreign availability
exists, and shall so notify the applicant. If the
Secretary has determined that the foreign avail-
ability exists, the Secretary shall, upon making
such determination, submit the determination
for review to other departments and agencies as
the Secretary considers appropriate. The Sec-
retary’s determination of foreign availability
shall not require the concurrence or approval of
any such department or agency. Not later than
30 days after the Secretary makes the deter-
mination, the Secretary shall respond in writing
to the applicant and submit for publication in
the Federal Register, that—
(i) the foreign availability does exist,
and the applicable steps are being taken
under paragraph (1); or
(ii) the foreign availability does not
exist.
(4) SHARING OF INFORMATION.—Each depart-
ment or agency of the United States, including any
intelligence agency, and all contractors with any
such department or agency, shall, upon the request
of the Secretary and consistent with the protection
of intelligence sources and methods as determined by
the Director of Central Intelligence, furnish informa-
tion to the Department of Commerce concerning for-
eign availability of items subject to export controls
under this section, including allowing access to any
information from a laboratory or other facility with-
in such department or agency.
(5) 
CONGRESSIONAL
NOTIFICATIONS.—The
Secretary shall annually notify the Committee on
Foreign Affairs of the House of Representatives,
and the Committee on Banking, Housing, and
Urban Affairs of the Senate, of all allegations of for-
eign availability received from export license appli-
cants under paragraph (3), and the actions the Sec-
retary has taken pursuant to such allegations.
(j) REVIEW OF CONTROLLED ITEMS.—
(1) IN GENERAL.—The Secretary shall review
all commodities and technology on the security con-
trol list maintained under subsection (b) at least an-
nually. At the conclusion of each review, the Sec-
retary shall justify the inclusion of each item on the
security control list, remove items from the security
control list, change the specifications of items on the
list, or add items to the list, in order to meet the
requirements of subsection (a)(1). The data devel-
oped from such reviews shall be used in formulating
United States proposals for revision of multilateral
controls in the applicable export control regimes.
(2) CONSIDERATIONS.—In conducting the an-
nual review, the Secretary shall—
(A) consult with the appropriate export ad-
visory committees appointed under section
104(f) and consider recommendations of such
committees with respect to proposed changes in
the security control list;
(B) consider the results of foreign avail-
ability determinations made under subsection
(i);
(C) consider comments received pursuant
to the notice of review provided under para-
graph (3)(B); and
(D) consult with other appropriate depart-
ments or agencies.
(3) PROCEDURES.—
(A) DURATION OF REVIEW.—The annual
review required under paragraph (1) may not
extend beyond 180 days after such review is
begun.
(B) NOTICE
OF
REVIEW.—Before begin-
ning each annual review, the Secretary shall
publish a notice of that review in the Federal
Register and shall provide a 30-day period for
comments and submission of data, with or with-
out oral presentation, by interested Government
agencies, exporters, and other interested par-
ties.
(C) REVISIONS.—The Secretary shall make
a determination of any revisions in the security
control list not later than 30 days after the end
of the review period. In making such determina-
tion, the Secretary shall consult with the appro-
priate departments or agencies. The concur-
rence or approval of any other department or
agency shall not be required before any such re-
vision is made.
(D) PROPOSALS TO EXPORT CONTROL RE-
GIMES.—If a revision of the security control list
under this paragraph affects the items con-
trolled by an export control regime, the Sec-
retary of State shall propose such revision to
that regime. Such revision shall become effec-
tive only to the extent such revision is agreed
to by the export control regime.
(E) PUBLICATION
OF
REVISIONS.—The
Secretary shall publish in the Federal Register
any revisions in the list, with an explanation of
the reasons for the revisions.
(k) INDEXING.—The Secretary shall develop, with the
assistance of the export advisory committees appointed
under section 104(f), methodologies and procedures for in-
dexing items on the security control list where perform-
ance capabilities are relevant and measurable. Such meth-
odologies and procedures shall provide for increases in the
performance levels of commodities and technology on the
security control list and shall provide for the technical
specifications below which no authority or permission to
export is required as compared to the most technologically
advanced commercially available version of the same or
equivalent commodities or technology. Such methodologies
and procedures shall be published in the Federal Register
and used in the annual review of the security control list
under subsection (j).
(l) REVIEW OF EXPORT CONTROLS ON COMPUTER
EQUIPMENT AND TECHNOLOGY.—
(1) IN GENERAL.—In order to ensure that re-
quirements of validated licenses are periodically re-
moved as computer equipment, computer commu-
nications and networking equipment, computer soft-
ware, and related technology, that are subject to
such requirements become obsolete with respect to
the specific objectives of the export controls requir-
ing such licenses, the Secretary shall conduct peri-
odic reviews of such controls. The Secretary shall
complete such a review not later than 6 months
after the date of the enactment of this Act, and
thereafter as part of the reviews conducted under
subsection (j).
(2) REVIEW
ELEMENTS.—In conducting each
review under paragraph (1), the Secretary shall do
the following with respect to the export controls de-
scribed in paragraph (1):
(A) OBJECTIVES OF CONTROLS.—The Sec-
retary shall identify the specific objectives of
the export controls, as part of a comprehensive
strategy to prevent the proliferation of weapons
of mass destruction, for the 12-month period
following completion of the review, for each
country or group of countries for which a vali-
dated license is required. When an objective of
an export control is to defer the development of
a specific capability in such country or group of
countries, the Secretary shall specify for what
period of time the controls are expected to defer
such capability.
(B) QUANTITY AND PERFORMANCE.—The
Secretary shall estimate, for the 12-month pe-
riod described in subparagraph (A), the quan-
tity and performance (measured in Composite
Theoretical Performance or other relevant per-
formance metrics) of computer systems that
must be obtained by each country or group of
countries for which a validated license is re-
quired in order to defeat the objectives of the
export controls.
(C) AVAILABILITY TO CONTROLLED DES-
TINATIONS.—The Secretary shall evaluate the
effectiveness of the export controls in achieving
their specific objectives, including explicit de-
scriptions of the availability from sources out-
side the United States, during the 12-month pe-
riod described in subparagraph (A), to con-
trolled countries of computer equipment, com-
puter communications and networking equip-
ment, computer software, and related tech-
nology on which the export controls are in ef-
fect.
(D) ECONOMIC
IMPACT.—The Secretary
shall evaluate the economic impact, during the
12-month period described in subparagraph
(A), of the export controls on exporting compa-
nies, including estimates of lost sales, loss in
market share, and administrative overhead.
(3) INCREASE IN THRESHOLDS.—
(A) INCREASES.—After completing each
review under this subsection, the Secretary
shall, after consultation with appropriate de-
partments or agencies, increase, if warranted by
the findings of the review, the following export
control thresholds, consistent with the obliga-
tions of the United States under export control
regimes:
(i) The performance levels at which
computer systems are eligible for delivery
under a distribution license or other license
authorizing multiple exports.
(ii) The performance levels defining a
‘‘supercomputer’’.
(iii) The performance levels at which
an individual validated license is required
for the export to a controlled country of
computer systems and peripherals, soft-
ware, parts, and communications equip-
ment normally supplied with such com-
puter systems.
In any recommendation for or publication of
such increase, the Secretary shall include the
specific rationale for the increase.
(B) PROPOSALS
TO
MULTILATERAL
RE-
GIMES.—The Secretary of State shall, within 30
days after a determination by the Secretary to
increase thresholds, propose to the other mem-
bers of the applicable export control regime the
elimination of the applicable controls on the
items with respect to which such determination
is made, in accordance with the procedures of
the regime, and publish a notice of such pro-
posal in the Federal Register.
(4) REPORT.—The Secretary shall transmit to
the Congress, and to any export advisory committee
appointed under section 104(f) with respect to com-
puter systems, a report on the findings of each re-
view conducted under this subsection, addressing
each requirement set forth in paragraph (2).
(5) HEARINGS.—The Secretary shall conduct
public hearings not less than once each year in order
to solicit information from all interested parties on
all matters to be addressed in each review conducted
under this subsection.
(6) REMOVAL OF CONTROLS ON MASS-MARKET
COMPUTER EQUIPMENT.—
(A) MASS-MARKET COMPUTER EQUIPMENT
DEFINED.—For purposes of this paragraph, the
term 
‘‘mass-market 
computer 
equipment’’
means 
any 
computer 
system, 
computer
networking equipment, peripheral to a computer
system, part or subassembly of a computer sys-
tem, or combination thereof, on which export
controls are in effect under this section, and
which will have been installed for end use out-
side the United States in a quantity exceeding
100,000 units over a 12-month period, as deter-
mined under subparagraph (B).
(B) ANTICIPATORY REVIEW OF MASS-MAR-
KET COMPUTER EQUIPMENT.—Not later than—
(i) 6 months after the date of the en-
actment of this Act, and
(ii) the end of each 1-year period oc-
curring thereafter,
the Secretary shall, in consultation with the
Computer Systems Technical Advisory Commit-
tee (or successor export advisory committee),
industry groups, and computer equipment pro-
ducers, identify those items described in sub-
paragraph (A) (including computer systems dif-
ferentiated in terms of Composite Theoretical
Performance) that will be installed for end use
outside the United States in a quantity exceed-
ing 100,000 units during the 12-month period
beginning on the applicable date described in
clause (i) or (ii). For purposes of this para-
graph, estimates of numbers of items that will
be installed shall be based on reliable estimates
provided by producers of such items.
(C) ACTION
BY
THE
SECRETARY.—Not
later than 30 days after an item is determined
by the Secretary under subparagraph (B) to be
mass-market computer equipment, the Sec-
retary of State shall propose to the export con-
trol regime controlling the equipment the elimi-
nation of controls on such equipment in accord-
ance with the procedures of the appropriate re-
gime and shall publish a notice of such proposal
in the Federal Register.
(m) TRADE SHOWS.—Consistent with the agreements
of applicable multilateral export control regimes, an appli-
cation for a license for the export to a controlled country
of any commodity on which export controls are in effect
under this section, without regard to the technical speci-
fications of the commodity, for the purpose of demonstra-
tion or exhibition at a trade show shall carry a presump-
tion of approval if—
(1) the United States exporter retains title to,
and maintains effective control of, the commodity,
and complies with any safeguard requirement im-
posed by the Secretary, during the entire period in
which the commodity is in the controlled country;
and
(2) the exporter removes the commodity from
the controlled country within a reasonable period of
time after the conclusion of the trade show, as de-
fined in regulations issued by the Secretary.
(n) STUDY ON COMPUTER EXPORT CONTROLS.—
(1) ARRANGEMENTS
FOR
AND
CONTENT
OF
STUDY.—
(A) ARRANGEMENTS
FOR
CONDUCTING
STUDY.—The Secretary, not later than 60 days
after the date of the enactment of this Act,
shall enter into appropriate arrangements with
the National Academy of Sciences and the Na-
tional Academy of Engineering (hereafter in
this subsection referred to as the ‘‘Academies’’)
to conduct a comprehensive study on the extent
to which exports of computers can be effectively
controlled, and the policy reasons for maintain-
ing such controls.
(B) REQUIREMENT OF STUDY.—Recogniz-
ing the need to enhance the competitiveness of
the United States computer industry while pre-
venting sensitive technology from being used to
develop weapons of mass destruction by con-
trolled countries, the study shall—
(i) examine the trends of the com-
puter industry, including those toward new
and more powerful computer systems
based upon ‘‘Parallel Computing’’ and
‘‘Virtual Parallel Processing’’, and their ef-
fect on the extent to which exports of com-
puter systems can be effectively controlled,
with respect to the factors described in
clause (ii);
(ii) examine the factors that make it
increasingly difficult to control the export
of computers, including the size and
expandability of many modern computer
systems and the availability of such com-
puter systems from foreign sources; and
(iii) examine the effect of export con-
trols on the competitiveness of the United
States computer industry.
(2) ADVISORY PANEL.—In conducting the study
under paragraph (1), the Academies shall appoint an
Advisory Panel of not more than 12 members who
shall be selected from among individuals who, by vir-
tue of their experience and expertise, are knowledge-
able in relevant scientific, business, legal, or admin-
istrative matters. No individual may serve as a mem-
ber who is an elected or appointed official or em-
ployee in the executive, legislative, or judicial branch
of any government. In selecting members of the Ad-
visory Panel, the Academies shall seek suggestions
from the President, the Congress, and representa-
tives of industry and the academic community.
(3) EXECUTIVE
BRANCH
COOPERATION.—The
Secretary, the Secretary of Defense, the Secretary of
State, the Director of the Central Intelligence Agen-
cy, and the head of any department or agency that
exercises authority under this title—
(A) shall furnish to the Academies, upon
request and under appropriate safeguards, clas-
sified or unclassified information which the
Academies determine to be necessary for the
purposes of conducting the study required by
this subsection; and
(B) shall work with the Academies on such
problems related to the study as the Academies
consider necessary.
(4) REPORT.—Under the direction of the Advi-
sory Panel, the Academies shall prepare and submit
to the President and the Congress, not later than 9
months after entering into the arrangements re-
ferred to in paragraph (1), a report which contains
a detailed statement of findings and conclusions of
the Academies from the study conducted under
paragraph (1), together with their recommendations
for the complete removal of controls from computers
or specifying the level of technology to which con-
trols on computers should be reduced.
SEC. 106. EMERGENCY CONTROLS.
(a) AUTHORITY.—
(1) IN GENERAL.—In order to carry out the
policy set forth in paragraphs (6) and (9) of section
103, the President may, in accordance with this sec-
tion, unilaterally prohibit or curtail the export of any
commodity or technology subject to the jurisdiction
of the United States or exported by any person sub-
ject to the jurisdiction of the United States.
(2) EXERCISE OF AUTHORITY.—The authority
contained in this subsection shall be exercised by the
Secretary, in consultation with the Secretary of
State, the Secretary of Defense, and such other de-
partments and agencies as the President considers
appropriate.
(3) EXPIRATION OF AUTHORITY.—
(A) IN GENERAL.—Any controls imposed
under this section shall expire 6 months after
they are imposed, unless they are terminated
earlier by the President or unless they are ex-
tended under this section, except that such con-
trols may be adopted as multilateral controls
under section 105 or included in an embargo
described in subsection (f)(1) that is imposed
by the President under the International Emer-
gency Economic Powers Act, the Trading with
the Enemy Act, or other provision of law other
than this title. Any extension or subsequent ex-
tension of the controls under this section shall
be for a period of not more than 1 year each.
The controls shall expire at the end of each
such extension unless they are terminated ear-
lier by the President or unless they are further
extended under this section, except that such
controls may be adopted as multilateral controls
under section 105 or included in an embargo
described in the first sentence of this subpara-
graph.
(B) 
EXCEPTION
FOR
MULTILATERAL
AGREEMENTS.—Subparagraph (A) shall not
apply to controls imposed by the President in
order to fulfill obligations of the United States
under resolutions of the United Nations or
under treaties to which the United States is a
(E) determines that the effect of the pro-
posed controls on the export performance of the
United States, the competitive position of the
United States as a supplier of items, or on the
economic well-being of individual United States
companies and their employees and commu-
nities does not exceed the benefits to the for-
eign policy or national security interests of the
United States; and
(F) identifies those commodities and tech-
nology to be controlled, determines that they
must be controlled in order to achieve the in-
tended purpose of the controls, and describes
the reasons for selecting such items.
(5) NEGOTIATIONS.—The President shall com-
mence, through the Secretary of State, within 10
days after the imposition of controls under this sec-
tion, negotiations with other countries to adopt the
controls so that such controls may be imposed under
section 105, unless such controls are imposed under
paragraph (3)(B).
(b) CONSULTATION WITH INDUSTRY.—The Sec-
retary in every possible instance shall consult with and
seek advice from affected United States industries and ex-
port advisory committees appointed under section 104(f)
before the imposition, expansion, or extension of any ex-
port control under this section.
(c) CONSULTATION WITH OTHER COUNTRIES.—
When expanding or extending export controls under this
section (unless such action is taken under subsection
(a)(3)(B)), the Secretary of State, in consultation with the
Secretary, shall, at the earliest appropriate opportunity,
consult with the countries with which the United States
maintains export controls cooperatively, and with other
countries, as appropriate, to advise them of the reasons
for the action and to urge them to adopt similar controls,
so that the controls may be imposed under section 105.
(d) CONSULTATIONS WITH THE CONGRESS.—
(1) CONSULTATIONS.—The Secretary may im-
pose, expand, or extend export controls under this
section only after consultation with the Congress, in-
cluding the Committee on Foreign Affairs of the
House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate.
(2) REPORTS.—The Secretary may not impose
or expand controls under subsection (a) until the
Secretary has submitted to the Congress a report—
(A) addressing each of the criteria set
forth in subparagraphs (A) through (F) of sub-
section (a)(4);
(B) specifying the purpose of the controls;
(C) describing the nature, the subjects,
and the results of, or plans for, the consultation
with industry under subsection (b) and with
other countries under subsections (a)(5) and
(c);
(D) specifying the nature and results of
any alternative means attempted to achieve the
objectives of the controls, or the reasons for im-
posing or expanding the controls without at-
tempting any such alternative means; and
(E) describing the availability from other
countries of items comparable to the items sub-
ject to the controls, and describing the nature
and results of the efforts made to secure the co-
operation of foreign governments in controlling
the foreign availability of such comparable com-
modities or technology.
Such report shall also indicate how such controls will
further significantly the policies of the United States
as set forth in section 103 or will further its de-
clared international obligations.
(3) SUBMISSION OF REPORT TO GAO.—Each re-
port required by paragraph (2) shall, at the same
time it is submitted to the Congress, also be submit-
ted to the General Accounting Office for the purpose
of assessing the report’s full compliance with the
purpose of this subsection.
(e) SEEKING MULTILATERAL SUPPORT FOR UNILAT-
ERAL CONTROLS.—The Secretary and the Secretary of
State shall have a continuing duty to seek support, by
other countries and by multilateral export control regimes,
for all controls imposed under this section.
(f) PROCEDURES AND LIMITATIONS ON EMERGENCY
CONTROLS.—
(1) IMPOSITION OF AN EMBARGO.—An embargo
under subsection (a)(3)(A) shall include the prohibi-
tion of all exports to and imports from the country
against which the controls under this section were
imposed, except that such an embargo need not in-
clude a prohibition on exports of items described in
section 114(k).
(2) CESSATION OF EMERGENCY CONTROLS.—
(A) IN GENERAL.—Controls imposed under
this section on commodities or technology shall
cease to be in effect immediately upon—
(i) the imposition of multilateral con-
trols under section 105 on the same com-
modities and technology to the country or
end user, or for the end use, with respect
to which the controls were imposed under
this section; or
(ii) the imposition, under the Inter-
national Emergency Economic Powers Act,
the Trading with the Enemy Act, or other
provision of law, of an embargo described
in paragraph (1).
(B) 
CONVERSION
TO
MULTILATERAL
AGREEMENTS.—If the President imposes con-
trols on commodities or technology to a country
or end user, or for an end use, under this sec-
tion in order to fulfill obligations of the United
States under resolutions of the United Nations
or under a treaty to which the United States is
a party, any controls imposed prior thereto
under this section on the same commodities or
technology to the same country or end user, or
for the same end use, shall immediately cease
to be in effect.
(3) LIMITATIONS ON REIMPOSITION.—Controls
which have ceased to be in effect under subsection
(a)(3), and which have not been extended under sub-
section (g), may not be reimposed by the President
under subsection (a) for a period of 6 months begin-
ning on the date on which the original controls ex-
pire.
(g) EXTENSION OF EMERGENCY CONTROLS.—
(1) REPORT.—If the President decides to ex-
tend controls imposed under subsection (a), which
are due to expire under subsection (a)(3), the Presi-
dent shall, not later than 60 calendar days before
the expiration of such controls, transmit to the Con-
gress a report on the proposed extension, setting
forth the reasons for the proposed extension in detail
and specifying the period of time, which may not ex-
ceed 1 year, for which the controls are proposed to
be extended. In particular, such report shall—
(A) contain determinations by the Presi-
dent—
(i) that the controls continue to be es-
sential to the national security or foreign
policy of the United States;
(ii) that no other alternative means
can achieve the national security or foreign
policy objectives of the United States with-
in a reasonable period of time, as described
in subsection (a)(4)(B);
(iii) that the United States has dem-
onstrated the ability to enforce all aspects
of the controls effectively; and
(iv) that the effect of the controls on
those 
factors 
described 
in 
subsection
(a)(4)(E) has not exceeded the benefits to
the foreign policy or national security in-
terests of the United States;
(B) identify those commodities and tech-
nology to be controlled, specify that they must
be controlled in order to achieve the intended
purpose of the controls, and describe the rea-
sons for the selection of such items;
(C) specify the reasons why negotiations
required under subsection (a)(5) or (c) failed to
result in the adoption of the controls under sec-
tion 105, and the prospects for the multilateral
adoption of such controls;
(D) specify the reasons why an embargo
described in paragraph (1) is not presently jus-
tified to achieve the national security or foreign
policy objectives of the United States;
(E) include an assessment by the Secretary
of the economic consequences of the controls
during the preceding 4 months (in the case of
the first extension of the controls under this
section) or during the preceding 10 months (in
the case of any subsequent extension of the con-
trols under this section), including estimates of
any lost United States exports and jobs;
(F) include an assessment by the Secretary
of State of the objectives of the controls and the
extent to which the controls have attained those
objectives during the preceding 4 months (in
the case of the first extension of the controls
under this section) or during the preceding 10
months (in the case of any subsequent exten-
sion of the controls under this section); and
(G) include an assessment by the Secretary
of Defense of the impact the controls have had
on the national security of the United States in
the preceding 4 months (in the case of the first
extension of the controls under this section) or
in the preceding 10 months (in the case of any
subsequent extension of the controls under this
section).
(2) CONSIDERATION OF EXTENSION.—The con-
trols shall remain in effect unless the Congress,
within 60 calendar days after its receipt of the re-
port under paragraph (1), enacts a joint resolution
pursuant to paragraph (3) disapproving the exten-
sion of the controls. Any controls remaining in effect
shall continue for the period specified in the report
or until terminated by the President, whichever oc-
curs first, but in no case longer than 1 year after
the date on which the controls would otherwise ex-
pire under subsection (a)(3), unless the Congress by
law terminates the controls. If the Congress, within
60 calendar days after the date of its receipt of such
report, enacts a joint resolution disapproving the ex-
tension of such controls, then such controls shall
cease to be effective upon the expiration of that 60-
day period.
(3) JOINT RESOLUTIONS.—
(A) DEFINITION.—For purposes of this
paragraph, the term ‘‘joint resolution’’ means
only a joint resolution the matter after the re-
solving clause of which is as follows: ‘‘That,
pursuant to section 106(g) of the Export Act of
1994, the President may not extend emergency
controls as specified in the report submit-
ted 
to 
the 
Congress 
on
lllllllllllll.’’, 
with 
the
blank space being filled with the appropriate
date.
(B) INTRODUCTION.—On the day on which
a report is submitted to the House of Rep-
resentatives and the Senate under paragraph
(1), a joint resolution with respect to the exten-
sion of controls specified in such report shall be
introduced (by request) in the House of Rep-
resentatives by the chairman of the Committee
on Foreign Affairs, for the chairman and the
ranking minority member of the Committee, or
by Members of the House designated by the
chairman and ranking minority member; and
shall be introduced (by request) in the Senate
by the majority leader of the Senate, for the
majority leader and the minority leader of the
Senate, or by Members of the Senate des-
ignated by the majority leader and the minority
leader of the Senate. If either House of Con-
gress is not in session on the day on which such
a report is submitted, the joint resolution shall
be introduced in that House, as provided for in
the preceding sentence, on the first day there-
after on which that House is in session.
(C) DISCHARGE.—If the Committee of ei-
ther House to which a joint resolution has been
referred has not reported the joint resolution by
the end of 30 calendar days after its referral,
the committee shall be discharged from further
consideration of the joint resolution or of any
other joint resolution introduced with respect to
the same matter.
(D) CONSIDERATION.—A joint resolution
under this paragraph shall be considered in the
Senate in accordance with the provisions of sec-
tion 601(b)(4) of the International Security As-
sistance and Arms Export Control Act of 1976.
For the purpose of expediting the consideration
and passage of joint resolutions reported or dis-
charged under this paragraph, it shall be in
order for the Committee on Rules of the House
of Representatives to present for consideration
a resolution of the House of Representatives
providing procedures for the immediate consid-
eration of a joint resolution under this para-
graph which may be similar, if applicable, to
the procedures set forth in section 601(b)(4) of
the International Security Assistance and Arms
Export Control Act of 1976.
(E) DUPLICATIVE RESOLUTIONS.—In the
case of a joint resolution described in subpara-
graph (A), if, before the passage by one House
of a joint resolution of that House, that House
receives a resolution with respect to the same
matter from the other House, then—
(i) the procedure in that House shall
be the same as if no joint resolution had
been received from the other House; and
(ii) the vote on final passage shall be
on the joint resolution of the other House.
(4) FURTHER EXTENSIONS OF CONTROLS.—If,
upon the expiration of the emergency controls ex-
tended under this subsection, the President deter-
mines that a further extension of emergency controls
for an additional period of time of not more than 1
year is necessary, paragraphs (1) through (3) shall
apply to such further extension.
(5) CALCULATION OF TIME PERIODS.—For pur-
poses of calculating calendar days under this sub-
section, there shall be excluded the days on which ei-
ther House of Congress is not in session because of
an adjournment of more than 3 days to a day cer-
tain or because of an adjournment of the Congress
sine die.
(h) EFFECT ON OTHER AUTHORITY.—
(1) EMBARGO
AUTHORITY.—Nothing in this
section shall be construed to limit the authority of
the President to impose an embargo described in
subsection (f)(1) on exports to, and imports from, a
specific country under the International Emergency
Economic Powers Act, the Trading with the Enemy
Act, or other provision of law (other than this title).
In any case in which the President exercises any
such authority to impose an embargo, the require-
ments of this section shall not apply for so long as
such embargo is in effect.
(2) EFFECT
ON
EXISTING
EMBARGOES.—(A)
Nothing in this section affects the authorities con-
ferred upon the President by section 5(b) of the
Trading with the Enemy Act, which were being exer-
cised with respect to a country on July 1, 1977, as
a result of a national emergency declared by the
President before that date, and are being exercised
on the date of the enactment of this Act.
(B) Nothing in this section affects the authori-
ties conferred upon the President by the Inter-
national Economic Powers Act or other provision of
law (other than the Export Administration Act of
1979), which were being exercised with respect to a
country before the date of the enactment of this Act
as a result of a national emergency declared by the
President before that date, and are being exercised
with respect to such country on such date of enact-
ment.
(i) COUNTRIES SUPPORTING INTERNATIONAL TER-
RORISM.—
(1) PROHIBITION ON EXPORTS.—(A) No export
or reexport of commodities or technology described
in subparagraph (B) may be made to any country
the government of which the Secretary of State has
determined has repeatedly provided support for acts
of international terrorism.
(B) The commodities or technology referred to
in subparagraph (A) are—
(i) any commodities or technology the ex-
port of which is controlled under this title pur-
suant to the Missile Technology Control Regime
or the Australia Group, or controlled under this
title pursuant to section 309(c) of the Nuclear
Non-Proliferation Act of 1978,
(ii) any commodities or technology de-
scribed in section 105(a)(1)(B) the export of
which is controlled under section 105, and
(iii) any commodities or technology the ex-
port of which could make a significant contribu-
tion to the military potential of a country de-
scribed in subparagraph (A), including its mili-
tary logistics capability, or could enhance the
ability of such country to support acts of inter-
national terrorism,
other than commodities or technology that the Presi-
dent determines will be used only for humanitarian
purposes. A validated license shall be required for
the export under this paragraph of any such com-
modities or technology that will be used only for hu-
manitarian purposes.
(C) Paragraphs (3)(A) and (4) of subsection (a)
shall not apply to exports prohibited or restricted
under this subsection.
(D)(i) The Secretary shall review the list of
items described in subparagraph (B)(iii) at least an-
nually. At the conclusion of the review, the Secretary
shall justify the inclusion of each item on the list,
remove items from the list, change the specifications
of items on the list, or add items to the list, in order
to ensure that the items on the list meet the require-
ments of subparagraph (B)(iii).
(ii) The procedures set forth in subparagraphs
(B), (C), and (E) of section 105(j) shall apply to re-
views under clause (i) of the list of items described
in subparagraph (B)(iii) to the same extent as such
subparagraphs apply to reviews of the security con-
trol list under section 105(j).
(2) NOTIFICATION OF CONGRESS OF LICENSES
ISSUED.—The Secretary and the Secretary of State
shall notify the Committee on Foreign Affairs of the
House of Representatives and the Committee on
Banking, Housing, and Urban Affairs and the Com-
mittee on Foreign Relations of the Senate at least
30 days before issuing any validated license under
this title for exports to a country described in para-
graph (1)(A).
(3) PUBLICATION OF DETERMINATIONS.—Each
determination of the Secretary of State under para-
graph (1)(A), and each determination under section
6(j)(1)(A) of the Export Administration Act of 1979
in effect at the time this title takes effect, shall be
published in the Federal Register.
(4) RESCISSION OF DETERMINATIONS.—A de-
termination made by the Secretary of State under
paragraph (1)(A) may not be rescinded unless the
President submits to the Speaker of the House of
Representatives and the chairman of the Committee
on Banking, Housing, and Urban Affairs and the
chairman of the Committee on Foreign Relations of
the Senate—
(A) before the proposed rescission would
take effect, a report certifying that—
(i) there has been a fundamental
change in the leadership and policies of the
government of the country concerned;
(ii) that government is not supporting
acts of international terrorism; and
(iii) that government has provided as-
surances that it will not support acts of
international terrorism in the future; or
(B) at least 45 days before the proposed
rescission would take effect, a report justifying
the rescission and certifying that—
(i) the government concerned has not
provided any support for international ter-
rorism during the preceding 6-month pe-
riod; and
(ii) the government concerned has
provided assurances that it will not sup-
port acts of international terrorism in the
future.
(5) WAIVER OF PROHIBITIONS.—The President
may waive the prohibitions contained in paragraph
(1)(A) with respect to a specific transaction if—
(A) the President determines that the
transaction is essential to the national security
interests of the United States; and
(B) not less than 30 days prior to the pro-
posed transaction, the President—
(i) consults with the Committee on
Foreign Affairs of the House of Represent-
atives and the Committee on Banking,
Housing, and Urban Affairs of the Senate
regarding the proposed transaction; and
(ii) submits to the Speaker of the
House of Representatives and the chair-
man of the Committee on Banking, Hous-
ing, and Urban Affairs of the Senate a re-
port containing—
(I) the name of any country in-
volved in the proposed transaction,
the identity of any recipient of the
items to be provided pursuant to the
proposed transaction, and the antici-
pated use of those items;
(II) a description of the items in-
volved in the proposed transaction (in-
cluding their market value) and the
actual sale price at each step in the
transaction;
(III) the reasons why the pro-
posed transaction is essential to the
national security interests of the
United States and the justification for
the proposed transaction;
(IV) the date on which the pro-
posed transaction is expected to occur;
and
(V) the name of every United
States Government department, agen-
cy, or other entity involved in the pro-
posed transaction, and every foreign
government involved in the proposed
transaction.
To the extent possible, the information specified in
clause (ii) of subparagraph (B) shall be provided in
unclassified form, with any classified information
provided in an addendum to the report.
(6) MULTILATERAL REGIMES.—The Secretary
of State shall propose to COCOM, to the Australia
Group, to the countries participating in the Missile
Technology Control Regime, and to the Nuclear
Suppliers Group, that each such group adopt those
controls that are imposed by this subsection on ex-
ports of commodities or technology subject to control
by such group. The Secretary of State shall continue
to make such proposals until such export controls
are so adopted.
(7) EFFECT ON OTHER LAWS.—The provisions
of this subsection do not affect any other provision
of law to the extent such other provision imposes
greater restrictions on exports to any country the
government of which the Secretary of State has de-
termined has repeatedly provided support for acts of
international terrorism than are imposed under this
subsection.
(j) CRIME CONTROL INSTRUMENTS.—
(1) VALIDATED
LICENSE
REQUIRED.—Crime
control and detection instruments and equipment
shall be approved for export by the Secretary only
pursuant to a validated export license. Paragraphs
(3)(A) and (4) of subsection (a) shall not apply to
the export controls imposed by this subsection.
(2) 
CONSULTATION
WITH
SECRETARY
OF
STATE.—
(A) ITEMS ON CONTROL LIST.—Any deter-
mination of the Secretary of what commodities
or technology shall be included on the control
index as a result of the export restrictions im-
posed by this subsection shall be made after
consultation with the Secretary of State.
(B) ACTION ON LICENSE APPLICATION.—
Any determination of the Secretary to approve
or deny an export license application to export
crime control or detection instruments or equip-
ment shall be made after consultation with the
Secretary of State.
(3) DISPUTE RESOLUTION.—If the Secretary of
State does not agree with the Secretary with respect
to any determination under paragraph (2), the Sec-
retary of State shall refer the matter to the Presi-
dent for resolution.
(4) EXCEPTIONS.—The provisions of this sub-
section shall not apply with respect to exports to
countries which are members of the North Atlantic
Treaty Organization or to Japan, Australia, or New
Zealand, or to such other countries as the President
shall designate consistent with the purposes of this
subsection and section 502B of the Foreign Assist-
ance Act of 1961.
(k) SPARE PARTS.—At the same time as the Presi-
dent imposes or expands export controls under this sec-
tion, the President shall determine whether such export
controls will apply to replacement parts or parts in com-
modities subject to such export controls.
SEC. 107. SHORT SUPPLY CONTROLS.
(a) AUTHORITY.—
(1) IN GENERAL.—In order to carry out the
policy set forth in section 103(4), the President may
prohibit or curtail the export of any commodities
subject to the jurisdiction of the United States or
exported by any person subject to the jurisdiction of
the United States. In curtailing exports to carry out
the policy set forth in section 103(4), the President
shall allocate a portion of export licenses on the
basis of factors other than a prior history of expor-
tation. Such factors shall include the extent to which
a country engages in equitable trade practices with
respect to United States commodities and treats the
United States equitably in times of short supply.
(2) PUBLIC
PARTICIPATION.—Upon imposing
quantitative restrictions on exports of any commod-
ities to carry out the policy set forth in section
103(4), the Secretary shall include in a notice pub-
lished in the Federal Register with respect to such
restrictions an invitation to all interested parties to
submit written comments within 15 days after the
date of publication on the impact of such restrictions
and the method of licensing used to implement
them.
(3) LICENSE FEES.—In imposing export con-
trols under this section, the President’s authority
shall include, but not be limited to, the imposition
of export license fees.
(b) MONITORING.—
(1) IN GENERAL.—In order to carry out the
policy set forth in section 103(4), the Secretary shall
monitor exports, and contracts for exports, of any
commodity when the volume of such exports in rela-
tion to domestic supply contributes, or may contrib-
ute, to an increase in domestic prices or a domestic
shortage, and such price increase or shortage has, or
may have, a serious adverse impact on the economy
or any sector thereof. Any such monitoring shall
commence at a time adequate to assure that the
monitoring will result in a data base sufficient to en-
able policies to be developed, in accordance with sec-
tion 103(4), to mitigate a short supply situation or
serious inflationary price rise or, if export controls
are needed, to permit imposition of such controls in
a timely manner. Information which the Secretary
requires to be furnished in effecting such monitoring
shall be confidential, except as provided in para-
graph (2).
(2) REPORTS ON MONITORING.—The results of
monitoring under paragraph (1) shall, to the extent
practicable, be aggregated and included in weekly re-
ports setting forth, with respect to each item mon-
itored, actual and anticipated exports, the destina-
tion by country, and the domestic and worldwide
price, supply, and demand. Such reports may be
made monthly if the Secretary determines that there
is insufficient information to justify weekly reports.
(3) CONSULTATION WITH SECRETARY OF EN-
ERGY.—The Secretary shall consult with the Sec-
retary of Energy to determine whether monitoring or
export controls under this section are warranted
with respect to exports of facilities, machinery, or
equipment normally and principally used, or in-
tended to be used, in the production, conversion, or
transportation of fuels and energy (except nuclear
energy), including, but not limited to—
(A) drilling rigs, platforms, and equipment;
(B) petroleum refineries, and natural gas
processing, liquefaction, and gasification plants;
(C) facilities for production of synthetic
natural gas or synthetic crude oil;
(D) oil and gas pipelines, pumping sta-
tions, and associated equipment; and
(E) vessels for transporting oil, gas, coal,
and other fuels.
(c) PETITIONS FOR MONITORING OR CONTROLS OF
METALLIC MATERIALS.—
(1) IN GENERAL.—(A) Any entity, including a
trade association, firm, or certified or recognized
union or group of workers, that is representative of
an industry or a substantial segment of an industry
that processes metallic materials capable of being re-
cycled may transmit a written petition to the Sec-
retary requesting the monitoring of exports or the
imposition of export controls, or both, with respect
to any such material, in order to carry out the policy
set forth in section 103(4).
(B) Each petition shall be in such form as the
Secretary shall prescribe and shall contain informa-
tion in support of the action requested. The petition
shall include any information reasonably available to
the petitioner indicating that each of the criteria set
forth in paragraph (3)(A) is satisfied.
(2) PUBLICATION OF NOTICE.—Within 15 days
after receipt of any petition described in paragraph
(1), the Secretary shall publish a notice in the Fed-
eral Register. The notice shall—
(A) include the name of the material that
is the subject to the petition;
(B) include the schedule B number of the
material as set forth in the Statistical Classi-
fication of Domestic and Foreign Commodities
Exported from the United States;
(C) indicate whether the petition is re-
questing that controls or monitoring, or both,
be imposed with respect to the exportation of
such material; and
(D) provide that interested persons shall
have a period of 30 days beginning on the date
on which the notice is published to submit to
the Secretary written data, views, or argu-
ments, with or without opportunity for oral
presentation, with respect to the matter in-
volved.
At the request of the petitioner or any other entity
described in paragraph (1)(A) with respect to the
material which is the subject of the petition, or at
the request of any entity representative of producers
or exporters of such material, the Secretary shall
conduct public hearings with respect to the subject
of the petition, in which case the 30-day period may
be extended to 45 days.
(3) DETERMINATION OF MONITORING OR CON-
TROLS.—(A) Within 45 days after the end of the
30- or 45-day period described in paragraph (2), as
the case may be, the Secretary shall determine
whether to impose monitoring or controls, or both,
on the export of the material that is the subject of
the petition in order to carry out the policy set forth
in section 103(4). In making such determination,
the Secretary shall determine whether—
(i) there has been a significant increase, in
relation to a specific period of time, in exports
of such material in relation to domestic supply
and demand;
(ii) there has been a significant increase in
domestic price of such material or a domestic
shortage of such material relative to demand;
(iii) exports of such material are as impor-
tant as any other cause of a domestic price in-
crease or shortage relative to demand found
under clause (ii);
(iv) a domestic price increase or shortage
relative to demand found under clause (ii) has
significantly adversely affected or may signifi-
cantly adversely affect the national economy or
any sector thereof, including a domestic indus-
try; and
(v) monitoring or controls, or both, are
necessary in order to carry out the policy set
forth in section 103(4).
(B) The Secretary shall publish in the Federal
Register a detailed statement of the reasons for the
Secretary’s determination under subparagraph (A)
of whether to impose monitoring or controls, or
both, including the findings of fact in support of
that determination.
(4) PUBLICATION
OF
REGULATIONS.—Within
15 days after making a determination under para-
graph (3) to impose monitoring or controls on the
export of a material, the Secretary shall publish in
the Federal Register proposed regulations with re-
spect to such monitoring or controls. Within 30 days
after the publication of such proposed regulations,
and after considering any public comments on the
proposed regulations, the Secretary shall publish and
implement final regulations with respect to such
monitoring or controls.
(5) CONSOLIDATION OF PETITIONS.—For pur-
poses of publishing notices in the Federal Register
and scheduling public hearings pursuant to this sub-
section, the Secretary may consolidate petitions, and
responses to such petitions, which involve the same
or related materials.
(6) SUBSEQUENT PETITIONS ON SAME MATE-
RIAL.—If a petition with respect to a particular ma-
terial or group of materials has been considered in
accordance with all the procedures described in this
subsection, the Secretary may determine, in the ab-
sence of significantly changed circumstances, that
any other petition with respect to the same material
or group of materials which is filed within 6 months
after the consideration of the prior petition has been
completed does not merit complete consideration
under this subsection.
(7) 
PRECEDENCE
OF
PROCEDURES
OVER
OTHER REVIEWS.—The procedures and time limits
set forth in this subsection with respect to a petition
filed under this subsection shall take precedence over
any review undertaken at the initiative of the Sec-
retary with respect to the same subject as that of
the petition.
(8) TEMPORARY
CONTROLS.—The Secretary
may impose monitoring or controls, on a temporary
basis, on the export of a metallic material after a pe-
tition is filed under paragraph (1)(A) with respect to
that material but before the Secretary makes a de-
termination under paragraph (3) with respect to
that material only if—
(A) the failure to take such temporary ac-
tions would result in irreparable harm to the
entity filing the petition, or to the national
economy or segment thereof, including a domes-
tic industry, and
(B) the Secretary considers such action to
be necessary to carry out the policy set forth in
section 103(4).
(9) OTHER AUTHORITY NOT AFFECTED.—The
authority under this subsection shall not be con-
strued to affect the authority of the Secretary under
any other provision of this title, except that if the
Secretary determines, on the Secretary’s own initia-
tive, to impose monitoring or controls, or both, on
the export of metallic materials capable of being re-
cycled, under the authority of this section, the Sec-
retary shall publish the reasons for such action in
accordance with paragraph (3) (A) and (B).
(10) SUBMISSION AND CONSIDERATION OF AD-
DITIONAL INFORMATION.—Nothing contained in this
subsection shall be construed to preclude submission
on a confidential basis to the Secretary of informa-
tion relevant to a decision to impose or remove mon-
itoring or controls under the authority of this title,
or to preclude consideration of such information by
the Secretary in reaching decisions required under
this subsection. The provisions of this paragraph
shall not be construed to affect the applicability of
section 552(b) of title 5, United States Code.
(d) DOMESTICALLY PRODUCED CRUDE OIL.—
(1) PROHIBITION ON EXPORTS.—Notwithstand-
ing any other provision of this title and notwith-
standing subsection (u) of section 28 of the Mineral
Leasing Act of 1920 (30 U.S.C. 185), no domesti-
cally produced crude oil transported by pipeline over
right-of-way granted pursuant to section 203 of the
Trans-Alaska Pipeline Authorization Act (43 U.S.C.
1652) may, subject to paragraph (2), be exported
from the United States, except any such crude oil
which—
(A) is exported to an adjacent foreign
country to be refined and consumed therein in
an exchange that—
(i) is for the same quantity of crude
oil being exported from that country to the
United States; and
(ii) results through convenience or in-
creased efficiency of transportation in
lower prices for consumers of petroleum
products in the United States as described
in paragraph (2)(A)(ii);
(B) is temporarily exported for convenience
or increased efficiency of transportation across
parts of an adjacent foreign country and reen-
ters the United States; or
(C) is transported to Canada, to be
consumed therein, in amounts not to exceed an
annual average of 50,000 barrels per day, in
addition to exports under subparagraphs (A)
and (B), except that any ocean transportation
of such oil shall be by vessels documented under
section 12106 of title 46, United States Code.
(2) EXCEPTIONS.—Crude oil subject to the pro-
hibition contained in paragraph (1) may be exported
only if—
(A) the President so recommends to the
Congress after making and publishing express
findings that exports of such crude oil, includ-
ing exchanges—
(i) will not diminish the total quantity
or quality of petroleum refined within,
stored within, or legally committed to be
transported to and sold within the United
States;
(ii) will, within 3 months following the
initiation of such exports or exchanges, re-
sult in—
(I) acquisition costs to the refin-
ers that purchase the imported crude
oil being lower than the acquisition
costs such refiners would have to pay
for the domestically produced oil in
the absence of such an export or ex-
change, and
(II) not less than 75 percent of
such savings in costs being reflected
in wholesale and retail prices of prod-
ucts refined from such imported crude
oil;
(iii) will be made only pursuant to
contracts which may be terminated if the
crude oil supplies of the United States are
interrupted, threatened, or diminished;
(iv) are clearly necessary to protect
the national interest; and
(v) are in accordance with the provi-
sions of this title; and
(B) the President includes such findings in
the recommendation to the Congress and the
Congress, within 60 days after receiving that
recommendation, agrees to a joint resolution
which approves such exports on the basis of
those findings, and which is thereafter enacted
into law.
(3) 
EXPORTS
UNDER
BILATERAL
AGREE-
MENTS.—Notwithstanding any other provision of
this section or any other provision of law, including
subsection (u) of section 28 of the Mineral Leasing
Act of 1920, the President may export oil to any
country pursuant to a bilateral international oil sup-
ply agreement entered into by the United States
with such country before June 25, 1979, or to any
country pursuant to the International Emergency
Oil Sharing Plan of the International Energy Agen-
cy.
(e) REFINED PETROLEUM PRODUCTS.—
(1) EXPORT LICENSES.—In any case in which
the President determines that it is necessary to im-
pose export controls on refined petroleum products
in order to carry out the policy set forth in section
103(4), the President shall notify the Congress of
that determination. The President shall also notify
the Congress if and when the President determines
that such export controls are no longer necessary.
During any period in which a determination that
such export controls are necessary is in effect, no re-
fined petroleum product may be exported except pur-
suant to an export license specifically authorizing
such export.
(2) NOTIFICATION
TO
CONGRESS
AND
LAY-
OVER.—(A) Not later than 5 days after an applica-
tion for a license to export any refined petroleum
product is received, the Secretary shall notify the
Congress of such application, together with the
name of the exporter, the destination of the pro-
posed export, and the amount and price of the pro-
posed export. Such notification shall be made to the
chairman of the Committee on Foreign Affairs of
the House of Representatives and the chairman of
the Committee on Banking, Housing, and Urban Af-
fairs of the Senate.
(B) The Secretary may not grant such license
during the 30-day period beginning on the date on
which notification to the Congress under paragraph
(1) is received, unless the President certifies in writ-
ing to the Speaker of the House of Representatives
and the President pro tempore of the Senate that
the proposed export is vital to the national interest
and that a delay in issuing the license would ad-
versely affect that interest.
(3) EXCEPTION.—This subsection shall not
apply to—
(A) any export license application for ex-
ports to a country with respect to which histori-
cal export quotas established by the Secretary
on the basis of past trading relationships apply;
or
(B) any license application for exports to a
country if exports under the license would not
result in the export from the United States of
more than 250,000 barrels of refined petroleum
products to such country in any fiscal year.
(4) DEFINITION.—For purposes of this sub-
section, the term ‘‘refined petroleum product’’ means
gasoline, kerosene, distillates, propane or butane
gas, diesel fuel, and residual fuel oil, that is refined
within the United States or entered for consumption
within the United States.
(5) EXTENSION
OF
LICENSE
APPLICATION
PROCESSING TIME.—The Secretary may extend any
time period prescribed in section 109 to the extent
necessary to take into account delays in action by
the Secretary on a license application on account of
the provisions of this subsection.
(f) CERTAIN PETROLEUM PRODUCTS.—Petroleum
products refined in United States foreign trade zones, or
in the United States Territory of Guam, from foreign
crude oil shall be excluded from any quantitative restric-
tions imposed under this section, except that, if the Sec-
retary finds that a product is in short supply, the Sec-
retary may issue such regulations as may be necessary to
limit exports.
(g) AGRICULTURAL COMMODITIES.—
(1) APPROVAL OF CONTROLS BY SECRETARY OF
AGRICULTURE.—The authority conferred by this sec-
tion shall not be exercised with respect to any agri-
cultural commodity, including fats and oils or animal
hides or skins, without the approval of the Secretary
of Agriculture. The Secretary of Agriculture shall
not approve the exercise of such authority with re-
spect to any such commodity during any period for
which the supply of such commodity is determined
by the Secretary of Agriculture to be in excess of the
requirements of the domestic economy, except to the
extent the President determines that the controls on
such agricultural commodities are also imposed
under section 106. The Secretary of Agriculture
shall, by exercising the authority which the Sec-
retary of Agriculture has under other applicable pro-
visions of law, collect data with respect to export
sales of animal hides and skins.
(2) PROTECTION
OF
STORED
COMMODITIES
FROM FUTURE CONTROLS.—Upon approval of the
Secretary, in consultation with the Secretary of Ag-
riculture, agricultural commodities purchased by or
for use in a foreign country may remain in the Unit-
ed States for export at a later date free from any
quantitative limitations on export which may be im-
posed to carry out the policy set forth in section
103(4) subsequent to such approval. The Secretary
may not grant such approval unless the Secretary
receives adequate assurance and, in conjunction with
the Secretary of Agriculture, finds—
(A) that such commodities will eventually
be exported,
(B) that neither the sale nor export thereof
will result in an excessive drain of scarce mate-
rial and have a serious domestic inflationary
impact,
(C) that storage of such commodities in
the United States will not unduly limit the
space available for storage of domestically
owned commodities, and
(D) that the purpose of such storage is to
establish a reserve of such commodities for later
use, not including resale to or use by another
country.
The Secretary may issue such regulations as may be
necessary to carry out this paragraph.
(3) PROCEDURES FOR IMPOSING CONTROLS.—
(A) If the President imposes export controls on any
agricultural commodity under section 106 (including
section 106(i)) or this section, the President shall
immediately transmit a report on such action to the
Congress, setting forth the reasons for the controls
in detail and specifying the period of time, which
may not exceed 1 year, that the controls are pro-
posed to be in effect. If the Congress, within 60 days
after the date of the receipt of the report, adopts a
joint resolution pursuant to paragraph (4) approving
the imposition of the export controls, then such con-
trols shall remain in effect for the period specified
in the report, or until terminated by the President,
whichever occurs first. If the Congress, within 60
100
days after the date of its receipt of such report, fails
to adopt a joint resolution approving such controls,
then such controls shall cease to be effective upon
the expiration of that 60-day period.
(B) The provisions of subparagraph (A) and
paragraph (4) shall not apply to export controls—
(i) which are extended under this title if
the controls, when imposed, were approved by
the Congress under subparagraph (A) and
paragraph (4); or
(ii) which are imposed with respect to a
country as part of the prohibition or curtail-
ment of all exports to that country.
(4) EXPEDITED
PROCEDURES.—(A) For pur-
poses of this paragraph, the term ‘‘joint resolution’’
means only a joint resolution the matter after the
resolving clause of which is as follows: ‘‘That pursu-
ant to section 107(g)(3) of the Export Act of 1994,
the President may impose export controls as speci-
fied in the report submitted to the Congress on
lll.’’, with the blank space being filled with the
appropriate date.
(B) On the day on which a report is submitted
to the House of Representatives and the Senate
under paragraph (3), a joint resolution with respect
101
to the export controls specified in such report shall
be introduced (by request) in the House by the
chairman of the Committee on Foreign Affairs, for
the chairman and the ranking minority member of
the Committee, or by Members of the House des-
ignated by the chairman and ranking minority mem-
ber; and shall be introduced (by request) in the Sen-
ate by the majority leader of the Senate, for the
chairman and the minority leader of the Senate, or
by Members of the Senate designated by the major-
ity leader and minority leader of the Senate. If ei-
ther House is not in session on the day on which
such a report is submitted, the joint resolution shall
be introduced in that House, as provided in the pre-
ceding sentence, on the first day thereafter on which
that House is in session.
(C) If the committee of either House to which
a joint resolution has been referred has not reported
the joint resolution at the end of 30 days after its
referral, the committee shall be discharged from fur-
ther consideration of the resolution or of any other
joint resolution introduced with respect to the same
matter.
(D) A joint resolution under this paragraph
shall be considered in the Senate in accordance with
102
the provisions of section 601(b)(4) of the Inter-
national Security Assistance and Arms Export Con-
trol Act of 1976. For the purpose of expediting the
consideration and passage of joint resolutions re-
ported or discharged pursuant to the provisions of
this paragraph, it shall be in order for the Commit-
tee on Rules of the House of Representatives to
present for consideration a resolution of the House
of Representatives providing procedures for the im-
mediate consideration of a joint resolution under
this paragraph which may be similar, if applicable,
to the procedure set forth in section 601(b)(4) of the
International Security Assistance and Arms Export
Control Act of 1976.
(E) In the case of a joint resolution described
in subparagraph (A), if, before the passage by one
House of a joint resolution of that House, that
House receives a resolution with respect to the same
matter from the other House, then—
(i) the procedure in that House shall be
the same as if no joint resolution has been re-
ceived from the other House; but
(ii) the vote on final passage shall be on
the joint resolution of the other House.
103
(5) COMPUTATION OF TIME PERIODS.—In the
computation of the period of 60 days referred to in
paragraph (3)(A) and the period of 30 days referred
to in paragraph (4)(C), there shall be excluded the
days on which either House of Congress is not in
session because of an adjournment of more than 3
days to a day certain or because of an adjournment
of the Congress sine die.
(h) BARTER AGREEMENTS.—
(1) EXEMPTION FROM CONTROLS.—The expor-
tation pursuant to a barter agreement of any com-
modities which may lawfully be exported from the
United States, for any commodities which may law-
fully be imported into the United States, may be ex-
empted, in accordance with paragraph (2), from any
quantitative limitation on exports (other than any
reporting requirement) imposed to carry out the pol-
icy set forth in section 103(4).
(2) CRITERIA FOR EXEMPTION.—The Secretary
shall grant an exemption under paragraph (1) if the
Secretary finds, after consultation with the appro-
priate department or agency of the United States,
that—
(A) for the period during which the barter
agreement is to be performed—
104
(i) the average annual quantity of the
commodities to be exported pursuant to
the barter agreement will not be required
to satisfy the average amount of such com-
modities estimated to be required annually
by the domestic economy and will be sur-
plus thereto; and
(ii) the average annual quantity of the
commodities to be imported will be less
than the average amount of such commod-
ities estimated to be required annually to
supplement domestic production; and
(B) the parties to such barter agreement
have demonstrated adequately that they intend,
and have the capacity, to perform such barter
agreement.
(3) DEFINITION.—For purposes of this sub-
section, the term ‘‘barter agreement’’ means any
agreement which is made for the exchange, without
monetary consideration, of any commodities pro-
duced in the United States for any commodities pro-
duced outside of the United States.
(4) 
APPLICABILITY.—This 
subsection 
shall
apply only with respect to barter agreements entered
into after September 30, 1979.
105
(i) UNPROCESSED RED CEDAR.—
(1) PROHIBITION.—No unprocessed western red
cedar (Thuja plicata) logs harvested from State or
Federal lands may be exported from the United
States.
(2) RED CEDAR NOT AN AGRICULTURAL COM-
MODITY.—Unprocessed western red cedar logs shall
not be considered to be an agricultural commodity
for purposes of subsection (g).
(3) DEFINITION.—As used in this subsection,
the term ‘‘unprocessed western red cedar’’ means
red cedar timber which has not been processed
into—
(A) lumber of American Lumber Stand-
ards Grades of Number 3 dimension or better,
or Pacific Lumber Inspection Bureau Export
R-List Grades of Number 3 common or better;
(B) chips, pulp, and pulp products;
(C) veneer and plywood;
(D) poles, posts, or pilings cut or treated
with preservative for use as such and not in-
tended to be further processed; or
(E) shakes and shingles.
(j) EFFECT
OF
CONTROLS
ON
EXISTING
CON-
TRACTS.—
106
(1) WESTERN RED CEDAR.—The export restric-
tions contained in subsection (i) and any export con-
trols imposed under this section shall not affect—
(A) any contract to harvest unprocessed
western red cedar from State lands which was
entered into before October 1, 1979, and the
performance of which would make the red cedar
available for export; or
(B) any contract to harvest unprocessed
red cedar which was entered into after Septem-
ber 30, 1979, and before October 1, 1982, and
the performance of which would make the red
cedar available for export, to the extent such
exports were permitted under section 7(i) of the
Export Administration Act of 1979.
(2) OTHER COMMODITIES.—Any export controls
imposed under this section on any agricultural com-
modity (including fats, oils, and animal hides and
skins), or on any forest product or fishery product,
shall not affect any contract to export entered into
before the date on which such controls are imposed.
For purposes of this paragraph, the term ‘‘contract
to export’’ includes, but is not limited to, an export
sales agreement and an agreement to invest in an
107
enterprise which involves the export of commodities
or technology.
(k) OIL EXPORTS
FOR USE
BY UNITED STATES
MILITARY FACILITIES.—For purposes of subsection (d),
and for purposes of any export controls imposed under
this title, shipments of crude oil, refined petroleum prod-
ucts, or partially refined petroleum products from the
United States for use by the Department of Defense or
United States-supported installations or facilities shall not
be considered to be exports.
SEC. 108. FOREIGN BOYCOTTS.
(a) PROHIBITIONS AND EXCEPTIONS.—
(1) PROHIBITIONS.—In order to carry out the
policies set forth in section 103(10), the President
shall issue regulations prohibiting any United States
person, with respect to that person’s activities in the
interstate or foreign commerce of the United States,
from taking or knowingly agreeing to take any of
the following actions with intent to comply with, fur-
ther, or support any boycott fostered or imposed by
a foreign country against a country which is friendly
to the United States and which is not itself the ob-
ject of any form of boycott pursuant to United
States law or regulation:
108
(A) Refusing, or requiring any other per-
son to refuse, to do business with or in the boy-
cotted country, with any business concern orga-
nized under the laws of the boycotted country,
with any national or resident of the boycotted
country, or with any other person, pursuant to
an agreement with, a requirement of, or a re-
quest from or on behalf of the boycotting coun-
try. The mere absence of a business relationship
with or in the boycotted country with any busi-
ness concern organized under the laws of the
boycotted country, with any national or resident
of the boycotted country, or with any other per-
son, does not indicate the existence of the in-
tent required to establish a violation of regula-
tions issued to carry out this subparagraph.
(B) Refusing, or requiring any other per-
son to refuse, to employ or otherwise discrimi-
nating against any United States person on the
basis of race, religion, sex, or national origin of
that person or of any owner, officer, director, or
employee of such person.
(C) Furnishing information with respect to
the race, religion, sex, or national origin of any
110
(F) Paying, honoring, confirming, or other-
wise implementing a letter of credit which con-
tains any condition or requirement compliance
with which is prohibited by regulations issued
pursuant to this paragraph, and no United
States person shall, as a result of the applica-
tion of this paragraph, be obligated to pay or
otherwise honor or implement such letter of
credit.
(2) EXCEPTIONS.—Regulations issued pursuant
to paragraph (1) shall provide exceptions for—
(A) complying or agreeing to comply with
requirements—
(i) prohibiting the import of commod-
ities or services from the boycotted country
or commodities produced or services pro-
vided by any business concern organized
under the laws of the boycotted country or
by nationals or residents of the boycotted
country; or
(ii) prohibiting the shipment of com-
modities to the boycotted country on a car-
rier of the boycotted country, or by a route
other than that prescribed by the boycott-
111
ing country or the recipient of the ship-
ment;
(B) complying or agreeing to comply with
import and shipping document requirements
with respect to the country of origin, the name
of the carrier and route of shipment, the name
of the supplier of the shipment, or the name of
the provider of other services, except that no in-
formation knowingly furnished or conveyed in
response to such requirements may be stated in
negative, blacklisting, or similar exclusionary
terms, other than with respect to carriers or
route of shipment as may be permitted by such
regulations in order to comply with precaution-
ary requirements protecting against war risks
and confiscation;
(C) complying or agreeing to comply in the
normal course of business with the unilateral
and specific selection by a boycotting country,
or national or resident thereof, of carriers, in-
surers, suppliers of services to be performed
within the boycotting country, or specific com-
modities which, in the normal course of busi-
ness, are identifiable by source when imported
into the boycotting country;
112
(D) complying or agreeing to comply with
export requirements of the boycotting country
relating to shipments or transshipment of ex-
ports to the boycotted country, to any business
concern of or organized under the laws of the
boycotted country, or to any national or resi-
dent of the boycotted country;
(E) compliance by an individual or agree-
ment by an individual to comply with the immi-
gration or passport requirements of any country
with respect to such individual or any member
of such individual’s family or with requests for
information regarding requirements of employ-
ment of such individual within the boycotting
country; and
(F) compliance by a United States person
resident in a foreign country or agreement by
such person to comply with the laws of the
country with respect to such person’s activities
exclusively therein, and such regulations may
contain exceptions for such resident complying
with the laws or regulations of the foreign coun-
try governing imports into such country of
trademarked, trade named, or similarly specifi-
cally identifiable products, or components of
113
products for such person’s own use, including
the performance of contractual services within
that country, as may be defined by such regula-
tions.
(3) LIMITATION ON EXCEPTIONS.—Regulations
issued pursuant to paragraphs (2)(C) and (2)(F)
shall not provide exceptions from paragraphs (1)(B)
and (1)(C).
(4) ANTITRUST AND CIVIL RIGHTS LAWS NOT
AFFECTED.—Nothing in the subsection may be con-
strued to supersede or limit the operation of the
antitrust or civil rights laws of the United States.
(5) EVASION.—This section shall apply to any
transaction or activity undertaken, by or through a
United States person or any other person, with in-
tent to evade the provisions of this section as imple-
mented by the regulations issued pursuant to this
subsection, and such regulations shall expressly pro-
vide that the exceptions set forth in paragraph (2)
shall not permit activities or agreements (expressed
or implied by a course of conduct, including a pat-
tern of responses) otherwise prohibited, which are
not within the intent of such exceptions.
(b) EMERGENCY CONTROLS.—
114
(1) REGULATIONS.—In addition to the regula-
tions issued pursuant to subsection (a), regulations
issued under section 106 shall implement the policies
set forth in section 103(10).
(2) REPORTS BY UNITED STATES PERSONS.—
Such regulations shall require that any United
States person receiving a request for the furnishing
of information, the entering into or implementing of
agreements, or the taking of any other action re-
ferred to in section 103(10) shall report that fact to
the Secretary, together with such other information
concerning such request as the Secretary may re-
quire, for such action as the Secretary considers ap-
propriate for carrying out the policies of that sec-
tion. Such person shall also report to the Secretary
whether such person intends to comply and whether
such person has complied with such request. Any re-
port filed pursuant to this paragraph shall be made
available promptly for public inspection and copying,
except that information regarding the quantity, de-
scription, and value of any commodities or tech-
nology to which such report relates may be kept con-
fidential if the Secretary determines that disclosure
thereof would place the United States person in-
volved at a competitive disadvantage. The Secretary
115
shall periodically transmit summaries of the infor-
mation contained in such reports to the Secretary of
State for such action as the Secretary of State, in
consultation with the Secretary, considers appro-
priate for carrying out the policies set forth in sec-
tion 103(10).
(c) PREEMPTION.—The provisions of this section and
the regulations issued under this section shall preempt any
law, rule, or regulation which—
(1) is a law, rule, or regulation of any of the
several States or the District of Columbia, or any of
the territories or possessions of the United States,
or of any governmental subdivision thereof; and
(2) pertains to participation in, compliance
with, implementation of, or the furnishing of infor-
mation regarding restrictive trade practices or boy-
cotts fostered or imposed by foreign countries
against other countries.
SEC. 109. PROCEDURES FOR PROCESSING EXPORT LI-
CENSE APPLICATIONS; OTHER INQUIRIES.
(a) 
PRIMARY
RESPONSIBILITY
OF
THE
SEC-
RETARY.—
(1) IN GENERAL.—All export license applica-
tions required under this title shall be submitted by
the applicant to the Secretary. All determinations
116
with respect to any such application shall be made
by the Secretary, subject to the procedures provided
in this section.
(2) REGULATIONS.—In regulations that carry
out this section, the Secretary shall describe the pro-
cedures required by this section, the responsibilities
of the Secretary and of other departments and agen-
cies in reviewing applications, the rights of the appli-
cant, and the extent of any multilateral review of a
given license application.
(3) CALCULATION OF TIME PERIODS.—In cal-
culating the processing times set forth in this sec-
tion, the Secretary shall use calendar days, except
that if the final day for a required action falls on a
weekend or holiday, that action shall be taken no
later than the following business day.
(4) CONSIDERATION OF RELIABILITY OF PAR-
TIES.—In reviewing applications for validated export
licenses, the Secretary may in each case consider the
reliability of the parties to the proposed export. In
making such an evaluation, the Secretary may con-
sider all sources of information, including intel-
ligence information. The consideration of intelligence
information in connection with the evaluation of the
reliability of parties shall not authorize the direct or
117
indirect disclosure of classified information or
sources and methods of gathering classified informa-
tion.
(b) ACTION BY OTHER DEPARTMENTS AND AGEN-
CIES.—
(1) REFERRALS.—(A) At the direction of the
President, the Secretary shall refer appropriate li-
cense applications required under section 105 or 106
to appropriate departments and agencies of the Gov-
ernment to make recommendations and provide in-
formation to the Secretary on such applications.
(B) The President shall restrict referrals of li-
cense applications to Government departments and
agencies that possess particular expertise and infor-
mation that is relevant to the licensing process and
is not possessed by the Secretary.
(2) ORGANIZATION OF REVIEWING AGENCIES.—
Departments and agencies reviewing license applica-
tions shall organize their resources and units to plan
for the prompt and expeditious internal dissemina-
tion of export license applications, if necessary, so as
to avoid delays in responding to the Secretary’s re-
quest for information and recommendations.
(3) REQUESTS
FOR
ADDITIONAL
INFORMA-
TION.—Within 5 days after an export license appli-
118
cation is referred to a department or agency under
this subsection, the agency or department shall
specify to the Secretary all information that is not
in the application that would be required to respond
to the referral of the application, and the Secretary
shall, pursuant to subsection (d)(1)(C), request such
information from the applicant. The time that may
elapse between the date the information is requested
from the applicant and the date the information is
received by the Secretary shall not be included in
calculating the time periods prescribed in this sec-
tion.
(c) ACTION BY THE SECRETARY.—Subject to sub-
section (d)(4), 30 days after the date of formal filing with
the Secretary of an export license application, a license
for the transaction specified in the application shall be-
come valid and effective and the commodities or tech-
nology involved are authorized for export or reexport pur-
suant to such license, unless—
(1) the application has been otherwise approved
by the Secretary, in which case it shall be valid and
effective according to the terms of the approval; or
(2) the application has been denied by the Sec-
retary under this section and the applicant has been
so informed.
119
(d) PROCEDURES
FOR PROCESSING EXPORT LI-
CENSE APPLICATIONS.—
(1) INITIAL
SCREENING.—Not more than 10
days after the date on which any export license ap-
plication is submitted to the Secretary, the Secretary
shall—
(A) send the applicant an acknowledgment
of the receipt of the application and the date of
the receipt;
(B) submit to the applicant a written de-
scription of the procedures required by this sec-
tion, the responsibilities of the Secretary with
respect to the application, and the rights of the
applicant;
(C) on the basis of information the Sec-
retary has, including information provided to
the Secretary under subsection (b)(3), return
the application without action if the application
is improperly completed or if additional infor-
mation is required, with sufficient information
to permit the application to be properly resub-
mitted; and
(D) determine whether it is necessary to
submit the application to a multilateral review
process pursuant to an export control regime
120
and, if so, inform the applicant of such require-
ment.
(2) REFERRAL.—(A) If, pursuant to criteria es-
tablished by the President, the Secretary is to refer
an export license application to any other depart-
ment or agency for a recommendation under sub-
section (b)(1), the Secretary shall, within 2 days
after receiving the application, refer the application
concurrently to all such departments or agencies,
transmitting the application electronically whenever
possible. A department or agency reviewing an ex-
port license application referred by the Secretary
shall have 10 days in which to submit to the Sec-
retary its recommendations on the application. Any
department or agency which does not submit its rec-
ommendations within that 10-day period shall be
deemed by the Secretary to have no objection to the
approval of such application.
(B) A recommendation that the Secretary deny
a validated license shall include a statement of rea-
sons for the recommendation that are consistent
with the provisions of this title, and shall cite both
the statutory and the regulatory basis for the rec-
ommendation.
121
(3) 
INTERAGENCY
COMMITTEE.—An 
inter-
agency committee may be established by the Presi-
dent for the purpose of resolving disputes among de-
partments and agencies on export license applica-
tions under this title. Such committee shall be
chaired by the Secretary. The procedures followed by
such interagency committee shall provide—
(A) deadlines for decisions within the
interagency committee consistent with the duty
of the Secretary to reach his or her final deci-
sion on an application within 30 days after the
date of filing of the license application;
(B) that a department or agency dissent-
ing from the position of the Secretary shall
have the burden to bring the issue in writing to
the next level of review provided within the
interagency committee and may only dissent on
the basis of the criteria set forth in section
105(c)(1)(D) or section 106(a)(4); and
(C) that a department or agency that fails
to make a timely escalation of a disputed mat-
ter shall be deemed to have no objection to the
decision of the Secretary.
(4) ACTIONS BY THE SECRETARY.—(A) When a
referral of a license application to other departments
122
or agencies is not required, the Secretary shall issue
a license or notify the applicant of the intent to deny
within 10 days after receiving the application.
(B) If an application is to be denied because
the export would be made to a controlled end user,
no referral to other departments or agencies is re-
quired, and the applicant shall be informed of the
reason for the denial.
(5) ACTION UPON DENIAL.—In cases in which
the Secretary has determined that a license applica-
tion should be denied, the applicant shall be in-
formed in writing, not later than 3 days after such
determination is made, of—
(A) the determination;
(B) the statutory and regulatory basis for
the proposed denial;
(C) the reasons for such denial, with ref-
erences to the criteria set forth in section 105,
106, or 107 (as the case may be);
(D) what, if any, modifications in, or re-
strictions on, the commodities or technology for
which the license was sought would allow the
export or reexport of the commodities or tech-
nology to be compatible with controls imposed
under this title;
123
(E) which officers and employees of the
Department of Commerce who are familiar with
the application will be made reasonably avail-
able to the applicant for considerations with re-
gard to such modifications or restrictions, if ap-
propriate;
(F) to the extent consistent with the na-
tional security and foreign policy of the United
States, the specific considerations which led to
the determination to deny the application; and
(G) the availability of appeal procedures.
The Secretary shall allow the applicant not less than
30 days to respond to the Secretary’s determination
before the license application is finally denied.
(e) RECORDKEEPING.—The Secretary shall make and
keep records of all advice and recommendations given by
Federal departments and agencies, and decisions made by
the Department of Commerce, in connection with any ex-
port license application or revision of an export license ap-
plication under this title, including the factual and analyt-
ical basis of the advice, recommendations, or decisions.
(f) CHANGES
IN REQUIREMENTS
FOR APPLICA-
TIONS.—Except as provided in subsection (d), in any case
in which, after an export license application is submitted,
the Secretary changes the requirements for such a license
124
application, the Secretary may request appropriate addi-
tional information of the applicant, but the Secretary may
not return the application to the applicant without action
because it fails to meet the changed requirements.
(g) APPEALS.—The Secretary shall establish appro-
priate procedures for any applicant to appeal to the Sec-
retary the denial of an export license application under
this title.
(h) OTHER INQUIRIES.—
(1) CLASSIFICATION REQUESTS.—In any case
in which the Secretary receives a written request for
the proper classification of a commodity or tech-
nology on the control index, the Secretary shall, not
more than 10 working days after receiving the re-
quest, inform the person making the request of the
proper classification.
(2) APPLICABILITY
OF
REQUIREMENTS.—In
any case in which the Secretary receives a written
request for information about the applicability of ex-
port license requirements under this title to a pro-
posed transaction or series of transactions, the Sec-
retary shall, not more than 30 days after receiving
the request, reply with that information to the per-
son making the request.
125
(3) PUBLICATION OF CLASSIFICATION DETER-
MINATIONS.—The Secretary shall, to the greatest
extent practicable, taking into account restrictions
on the disclosure of classified or confidential infor-
mation, publish in the Federal Register classification
determinations made under paragraph (1).
(i) REPORTS ON LICENSE APPLICATIONS.—
(1) QUARTERLY REPORT.—Not later than 180
days after the date of the enactment of this Act, and
not later than the end of each 3-month period there-
after, the Secretary shall submit to the Committee
on Foreign Affairs of the House of Representatives
and to the Committee on Banking, Housing, and
Urban Affairs of the Senate a report listing all ap-
plications on which action was completed during the
preceding 3-month period and which required a pe-
riod longer than the period permitted under sub-
section (c) or (d)(4), as the case may be, before noti-
fication on a decision to approve or deny the applica-
tion was sent to the applicant.
(2) 
INFORMATION
ON
LICENSE
APPLICA-
TIONS.—With regard to each application, each list-
ing shall identify—
(A) the application case number;
126
(B) the value of the commodities or tech-
nology to which the application relates;
(C) the country of destination of the com-
modities or technology;
(D) the date on which the application was
received by the Secretary;
(E) the date on which the Secretary ap-
proved or denied the application; and
(F) the date on which the notification of
approval or denial of the application was sent to
the applicant.
(3) INTRODUCTION TO REPORT.—With respect
to an application referred to any other department
or agency which did not submit or has not submitted
its recommendations on the application within the
period permitted under subsection (d)(2) to submit
such recommendations, the listing shall also in-
clude—
(A) the office responsible for processing
the application and the officer responsible for
the office; and
(B) the period of time that elapsed before
the recommendations were submitted or that
has elapsed since referral of the application, as
the case may be.
127
SEC. 110. VIOLATIONS.
(a) CRIMINAL PENALTIES.—
(1) VIOLATIONS BY AN INDIVIDUAL.—Any indi-
vidual who knowingly violates or conspires to or at-
tempts to violate any provision of this title or any
regulation, license, or order issued under this title
shall be fined not more than 5 times the value of the
exports involved or $500,000, whichever is greater,
or imprisoned not more than 10 years, or both.
(2) VIOLATIONS BY A PERSON OTHER THAN AN
INDIVIDUAL.—Any person other than an individual
who knowingly violates or conspires to or attempts
to violate any provision of this title or any regula-
tion, license, or order issued under this title shall be
fined not more than 10 times the value of the ex-
ports involved or $1,000,000, whichever is greater.
(b) FORFEITURE OF PROPERTY INTEREST AND PRO-
CEEDS.—
(1) FORFEITURE.—Any person who is convicted
under subsection (a) (1) or (2) shall, in addition to
any other penalty, forfeit to the United States—
(A) any of that person’s interest in, secu-
rity of, claim against, or property or contractual
rights of any kind in the commodities or tan-
gible items that were the subject of the viola-
tion;
128
(B) any of that person’s interest in, secu-
rity 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 con-
stituting, or derived from, any proceeds ob-
tained directly or indirectly as a result of the
violation.
(2) PROCEDURES.—The procedures in any for-
feiture under this subsection, and the duties and au-
thority of the courts of the United States and the
Attorney General with respect to any forfeiture ac-
tion under this subsection or with respect to any
property that may be subject to forfeiture under this
subsection, shall be governed by the provisions of
section 1963 of title 18, United States Code.
(c) CIVIL
PENALTIES; ADMINISTRATIVE
SANC-
TIONS.—
(1) CIVIL PENALTIES.—The Secretary may im-
pose a civil penalty of not more than $250,000 for
each violation of this title or any regulation, license,
or order issued under this title, either in addition to
or in lieu of any other liability or penalty which may
be imposed, except that the civil penalty for each
129
such violation of regulations issued under section
108 may not exceed $50,000.
(2) DENIAL OF EXPORT PRIVILEGES.—The Sec-
retary may deny the export privileges of any person,
including suspending or revoking the authority of
any person to export or receive United States-origin
commodities or technology, on account of any viola-
tion of this title or any regulation, license, or order
issued under this title.
(d) PAYMENT OF CIVIL PENALTIES.—The payment
of any civil penalty imposed under subsection (c) may be
made a condition, for a period not exceeding 1 year after
the penalty has become due but has not been paid, to the
granting, restoration, or continuing validity of any export
license, permission, or privilege granted or to be granted
to the person upon whom such penalty is imposed. In addi-
tion, the payment of any civil penalty imposed under sub-
section (c) may be deferred or suspended in whole or in
part for a period of time no longer than any probation
period (which may exceed 1 year) that may be imposed
upon such person. Such deferral or suspension shall not
operate as a bar to the collection of the penalty in the
event that the conditions of the suspension, deferral, or
probation are not fulfilled.
130
(e) REFUNDS.—Any amounts realized from the for-
feiture of any property interest or proceeds under sub-
section (b), and any amount paid in satisfaction of any
civil penalty imposed under subsection (c) shall be covered
into the Treasury as a miscellaneous receipt. The head
of the department or agency concerned may, in his or her
discretion, refund any such civil penalty imposed under
subsection (c), within 2 years after payment, on the
ground of a material error of fact or law in the imposition
of the penalty. Notwithstanding section 1346(a) of title
28, United States Code, no action for the refund of any
such penalty may be maintained in any court.
(f) EFFECT OF OTHER CONVICTIONS.—
(1) DENIAL OF EXPORT PRIVILEGES.—Any per-
son convicted of a violation of—
(A) this title or the Export Administration
Act of 1979 (or any regulation, license, or order
issued under this title or that Act),
(B) any regulation, license, or order issued
under the International Emergency Economic
Powers Act,
(C) section 793, 794, or 798 of title 18,
United States Code,
(D) section 371 or 1001 of title 18, United
States Code, if in connection with the export of
131
commodities or technology controlled under this
title, or defense articles or defense services con-
trolled under the Arms Export Control Act,
(E) section 4(a) of the Internal Security
Act of 1950 (50 U.S.C. 783(a)), or
(F) section 38 of the Arms Export Control
Act,
may, at the discretion of the Secretary, be denied ex-
port privileges under this title for a period of up to
10 years from the date of the conviction. The Sec-
retary may also revoke any export license under this
title in which such person had an interest at the
time of the conviction.
(2) RELATED
PERSONS.—The Secretary may
exercise the authority under paragraph (1) with re-
spect to any person related, through affiliation, own-
ership, control, or position of responsibility, to any
person convicted of any violation of a law set forth
in paragraph (1), upon a showing of such relation-
ship with the convicted person, after providing notice
and opportunity for a hearing.
(g) STATUTE OF LIMITATIONS.—Any proceeding in
which a civil penalty or other administrative sanction
(other than a temporary denial order) is sought under sub-
section (c) may not be instituted more than 5 years after
132
the date of the alleged violation, except that, in any case
in which a criminal indictment alleging a violation of this
title is returned within the time limits prescribed by law
for the institution of such action, the statute of limitations
for bringing a proceeding to impose such a civil penalty
or other administrative sanction under this title shall,
upon the return of the criminal indictment, be tolled
against all persons named as a defendant. The tolling of
the statute of limitations shall continue for a period of
6 months from the date a conviction becomes final or the
indictment is dismissed.
(h) VIOLATIONS DEFINED BY REGULATION.—Noth-
ing in this section shall limit the power of the Secretary
to define by regulation violations under this title.
(i) OTHER AUTHORITIES.—Nothing in subsection
(c), (d), (f), or (g) limits—
(1) the availability of other administrative or
judicial remedies with respect to violations of this
title, or any regulation, order, or license issued
under this title;
(2) the authority to compromise and settle ad-
ministrative proceedings brought with respect to any
such violation; or
(3) the authority to compromise, remit, or miti-
gate seizures and forfeitures pursuant to section
133
1(b) of title VI of the Act of June 15, 1917 (22
U.S.C. 401(b)).
(j) PRIVATE RIGHT OF ACTION.—Any person injured
in his or her business or property by reason of a violation
of the regulations issued pursuant to section 108(a) may
sue therefor in any appropriate United States district
court against the United States person committing the
violation and shall recover the damages such person sus-
tains and the cost of the suit, including a reasonable attor-
ney’s fee. In any such action the court may award punitive
damages. An action may be brought under this subsection
against a United States person whether or not the United
States person has been determined under this section to
have violated the regulations issued pursuant to section
108(a) on account of which the action is brought.
SEC. 111. CONTROLLING PROLIFERATION ACTIVITY.
(a) ESTABLISHMENT OF PROLIFERATION LISTS.—
(1) ESTABLISHMENT OF CHEMICAL AND BIO-
LOGICAL
WEAPONS
CONTROL
LIST
UNDER
THIS
TITLE.—
(A) IN GENERAL.—The Secretary, in con-
sultation with the Secretary of State, the Sec-
retary of Defense, and the heads of other ap-
propriate departments and agencies, shall es-
134
tablish and maintain a list of all dual use com-
modities and technology—
(i) that would directly and substan-
tially assist a foreign government, group,
entity, or project in acquiring the capabil-
ity to develop, produce, stockpile, or deliver
chemical or biological weapons; and
(ii) the licensing of which would be ef-
fective in barring the acquisition or en-
hancement of such capability.
The list shall include those dual use commod-
ities and technology controlled pursuant to the
Australia Group or any other multilateral ex-
port control regime that seeks to prevent the
proliferation of chemical or biological weapons.
(B) REQUIREMENT
FOR
VALIDATED
LI-
CENSES.—Subject to the provisions of this title,
the Secretary shall require a validated license
for any export of commodities or technology on
the list established under subparagraph (A) to
any country of concern.
(C) COUNTRY
OF
CONCERN.—For pur-
poses of subparagraph (B), the term ‘‘country
of concern’’ means any country other than—
135
(i) a country with whose government
the United States has entered into a bilat-
eral or multilateral arrangement for the
control of commodities or technology on
the list established under subparagraph
(A); and
(ii) such other countries as the Sec-
retary of State, in consultation with the
Secretary and the Secretary of Defense,
shall designate consistent with the pur-
poses of this section.
(2) ESTABLISHMENT OF MISSILE TECHNOLOGY
CONTROL LIST UNDER THIS TITLE.—
(A) IN GENERAL.—The Secretary, in con-
sultation with the Secretary of State, the Sec-
retary of Defense, and the heads of other ap-
propriate departments and agencies—
(i) shall establish and maintain a list
of all dual use commodities and technology
on the MTCR Annex; and
(ii) may include on that list any com-
modities or technology that would provide
a direct and significant impact on the de-
velopment of missile delivery systems.
136
(B) REQUIREMENT OF INDIVIDUAL VALI-
DATED LICENSES.—Subject to the provisions of
this title, the Secretary shall require an individ-
ual validated license for—
(i) any export of commodities or tech-
nology on the list established under sub-
paragraph (A) to any country; and
(ii) any export of commodities or tech-
nology that the exporter knows is destined
for a project or facility for the design, de-
velopment, or manufacture of a missile in
a country that is not an MTCR adherent.
(C) POLICY OF DENIAL OF LICENSES.—(i)
Licenses under subparagraph (B) should in
general be denied if the ultimate consignee of
the commodities or technology is a facility in a
country that is not an MTCR adherent and the
facility is designed to develop or build missiles.
(ii) Licenses under subparagraph (B) shall
be denied if the ultimate consignee of the com-
modities or technology is a facility in a country
the government of which has been determined
under section 106(i)(1) to have repeatedly pro-
vided support for acts of international terror-
ism.
137
(D) DEFINITION.—For purposes of this
paragraph, the term ‘‘MTCR adherent’’ means
a country that participates in the MTCR or
that, pursuant to an international understand-
ing to which the United States is a party, con-
trols MTCR equipment or technology in accord-
ance with the criteria and standards set forth
in the MTCR.
(b) ESTABLISHMENT OF LISTS UNDER ARMS EX-
PORT CONTROL ACT.—
(1) CHEMICAL
AND
BIOLOGICAL
WEAPONS
LIST.—Section 81 of the Arms Export Control Act
(22 U.S.C. 2798) is amended to read as follows:
‘‘SEC. 81. ESTABLISHMENT OF CHEMICAL AND BIOLOGICAL
WEAPONS CONTROL LIST
‘‘(a) IN GENERAL.—The Secretary of State, in con-
sultation with the Secretary of Defense, and the heads of
other appropriate departments and agencies, shall estab-
lish and maintain, as part of the United States Munitions
List, a list of items—
‘‘(1) that would directly and substantially assist
a foreign government, group, entity, or project in ac-
quiring the capability to develop, produce, stockpile,
or deliver chemical or biological weapons;
138
‘‘(2) the licensing of which would be effective in
barring the acquisition or enhancement of such ca-
pability; and
‘‘(3) the export of which is not subject to con-
trol under section 111(a)(1) of the Export Act of
1994.
The list shall include those items, not subject to control
under section 111(a)(1) of the Export Act of 1994, that
are controlled pursuant to the Australia Group or any
other multilateral export control regime that seeks to pre-
vent the proliferation of chemical or biological weapons.
‘‘(b) REQUIREMENT FOR LICENSES.—The Secretary
of State shall require a license for any export of items
on the list established under subsection (a).
‘‘(c) DEFINITIONS.—For purposes of this section, the
terms ‘multilateral export control regime’ and ‘Australia
Group’ have the meanings given those terms in section
116 of the Export Act of 1994.’’.
(2) MISSILE
TECHNOLOGY
CONTROL
LIST.—
Section 71 of the Arms Export Control Act (22
U.S.C. 2797) is amended to read as follows:
‘‘SEC. 71. LICENSING.
‘‘(a) ESTABLISHMENT
OF MISSILE TECHNOLOGY
CONTROL LIST.—The Secretary of State, in consultation
with the Secretary of Defense and the heads of other ap-
139
propriate departments and agencies, shall establish and
maintain a list of all items, which shall include those items
listed on the MTCR Annex, that would provide a direct
and significant impact on the development of missile deliv-
ery systems and the export of which is not subject to con-
trol under section 111(a)(2) of the Export Act of 1994.
‘‘(b) REQUIREMENT OF VALIDATED LICENSES.—The
Secretary shall require a validated license for—
‘‘(1) any export of items on the list established
under subsection (a) to any country; and
‘‘(2) any export of items that the exporter
knows is destined for a project or facility for the de-
sign, development, or manufacture of a missile in a
country that is not an MTCR adherent.
‘‘(c) POLICY OF DENIAL OF LICENSES.—
‘‘(1) EXPORTS TO OTHER THAN MTCR ADHER-
ENTS.—Licenses under subsection (b) shall be de-
nied if the ultimate consignee of the items is a facil-
ity in a country that is not an MTCR adherent and
the facility is designed to develop or build missiles.
‘‘(2) EXPORTS TO TERRORIST COUNTRIES.—Li-
censes under subsection (b) shall be denied if the ul-
timate consignee of the items is a facility in a coun-
try the government of which has been determined
under section 106(i)(1) of the Export Act of 1994
140
to have repeatedly provided support for acts of inter-
national terrorism.’’.
(c) SANCTIONS FOR ACTIVITIES SUPPORTING THE
PROLIFERATION OF CHEMICAL AND BIOLOGICAL WEAP-
ONS AND MISSILES.—
(1) VIOLATIONS
BY
UNITED
STATES
PER-
SONS.—(A) If the President determines that a
United States person, on or after the date of the en-
actment of this Act, with requisite knowledge—
(i) exports or transfers—
(I) any item on the list established
under subsection (a)(1) or (a)(2), or
(II) any item on the list established
under section 71(a) or 81(a) of the Arms
Export Control Act,
in violation of United States law,
(ii) conspires to or attempts to engage in
such export or transfer, or
(iii) facilitates such export or transfer by
any other person,
then the President shall impose, for a period of 2
years, the sanctions described in subparagraph (B)
on the entities described in paragraph (3).
(B) The sanctions referred to in subparagraph
(A) are the following:
141
(i) All export licenses under this title to
the sanctioned entity for, or for the transfer to
the sanctioned entity of, items controlled under
section 105, or items controlled under section
106 that meet the requirements of section
105(a)(1)(A) or (B), and all export licenses
under the Arms Export Control Act to the
sanctioned entity for, or for the transfer to the
sanctioned entity of, items on the United States
Munitions List, shall be denied.
(ii) The United States Government shall
not procure, or enter into any contract for the
procurement of, any services, commodities,
technology, or other products from or produced
by the sanctioned entity.
(C) In the case of a determination made under
subparagraph (A), the President may pursue any
penalty provided in section 38(c) of the Arms Ex-
port Control Act.
(2) VIOLATIONS BY FOREIGN PERSONS.—(A) If
the President determines that a foreign person, on
or after the date of the enactment of this Act, with
requisite knowledge contributed to the efforts of any
government, group, entity, or project to use, design,
143
under the Arms Export Control Act for the
transfer to the sanctioned entity of, or to the
sanctioned entity for, items on the United
States Munitions List, shall be denied.
(ii) The United States Government shall
not procure, or enter into any contract for the
procurement of, any services, commodities,
technology, or other products from or produced
by the sanctioned entity.
(iii) Imports of products from or produced
by the sanctioned entity shall be prohibited.
(3) ENTITIES AGAINST WHICH SANCTIONS ARE
IMPOSED.—The President shall impose sanctions
under paragraphs (1) and (2) on—
(A) the person that committed the conduct
that is the subject of the determination giving
rise to the sanctions;
(B) any successor of a person or entity de-
scribed in subparagraph (A);
(C) any foreign person or United States
person that is a parent or subsidiary of a per-
son or entity described in subparagraph (A), if
that parent or subsidiary with requisite knowl-
edge assisted in the activities which are the
basis of that determination; and
144
(D) any foreign person or United States
person that is an affiliate of a person or entity
described in subparagraph (A), if that affiliate
with requisite knowledge assisted in the activi-
ties which were the basis of that determination
and if that affiliate is controlled in fact by that
person or entity.
For purposes of this section, any person or entity
described in subparagraph (A), (B), (C), or (D)
shall be referred to as a ‘‘sanctioned entity’’.
(4) EXEMPTION OF CERTAIN EXPORTS FROM
SANCTIONS.—The 
requirement 
in 
paragraph
(1)(B)(i) and (2)(B)(i) that licenses to export items
controlled under section 105 or 106 be denied shall
not apply to items which require individual validated
licenses solely by virtue of the imposition of controls
under the Enhanced Proliferation Control Initiative
regulations set forth in section 778.7(c) of title 15,
Code of Federal Regulations.
(5) EXEMPTION FOR MTCR ADHERENTS.—
(A) EXEMPTION.—Paragraphs (1) and (2)
do not apply with respect to any export or
transfer—
(i) that is authorized by the laws of
an MTCR adherent, if such authorization
145
is not obtained by misrepresentation or
fraud; or
(ii) to an end user in a country that
is an MTCR adherent.
(B) DEFINITION.—For purposes of this
paragraph, the term ‘‘MTCR adherent’’ has the
meaning 
given 
that 
term 
in 
subsection
(a)(2)(D).
(6) CONSULTATION
WITH
AND
ACTIONS
BY
FOREIGN GOVERNMENT OF JURISDICTION.—
(A) CONSULTATIONS.—If the President
makes a determination described in paragraph
(2) with respect to a foreign person, the Con-
gress urges the President to initiate consulta-
tions immediately with the government with pri-
mary jurisdiction over that foreign person with
respect to the imposition of sanctions pursuant
to this subsection.
(B) ACTIONS BY GOVERNMENT OF JURIS-
DICTION.—In order to pursue such consulta-
tions with that government, the President may
delay imposition of sanctions pursuant to this
subsection for up to 90 days. Following these
consultations, the President shall impose sanc-
tions unless the President determines and cer-
146
tifies to the Congress that that government has
taken specific and effective actions, including
appropriate penalties, to terminate the involve-
ment of the foreign person in the activities de-
scribed in paragraph (2). The President may
delay the imposition of sanctions for up to an
additional 90 days if the President determines
and certifies to the Congress that that govern-
ment is in the process of taking the actions de-
scribed in the preceding sentence.
(C) REPORT
TO
CONGRESS.—Not later
than 90 days after making a determination
under paragraph (2), the President shall submit
to the Committee on Foreign Relations and the
Committee on Governmental Affairs of the Sen-
ate and the Committee on Foreign Affairs of
the House of Representatives a report on the
status of consultations with the appropriate
government under this paragraph, and the basis
for any determination under subparagraph (B)
that such government has taken specific and ef-
fective actions.
(7) EFFECT OF ENFORCEMENT ACTIONS BY RE-
GIME ADHERENTS.—
147
(A) EXEMPTION FROM SANCTIONS.—Sanc-
tions set forth in paragraph (1) or (2) may not
be imposed under this subsection on a person
with respect to acts described in either such
paragraph or, if such sanctions are in effect
against a person on account of such acts, such
sanctions shall be terminated, if the government
of a regime adherent, other than the United
States, is taking judicial or other enforcement
action against that person with respect to such
acts, or that person has been found by the gov-
ernment of a regime adherent to be innocent of
wrongdoing with respect to such acts.
(B) REGIME
ADHERENT
DEFINED.—For
purposes of subparagraph (A), a ‘‘regime ad-
herent’’ is a country that is a member of a mul-
tilateral regime that controls the export or
transfer giving rise to the sanctions, or that,
pursuant to an international understanding to
which the United States is a party, controls the
export or transfer in accordance with the cri-
teria and standards set forth in the regime.
(8) REQUISITE
KNOWLEDGE
DEFINED.—For
purposes of this subsection, the term ‘‘requisite
knowledge’’ means situations in which a person
148
‘‘knows’’, as ‘‘knowing’’ is defined in section 104 of
the Foreign Corrupt Practices Act of 1977 (15
U.S.C. 78dd–2).
(9) FOREIGN PERSON DEFINED FOR CERTAIN
EXPORTS.—(A) For purposes of any determination
under paragraph (2)(A) with respect to an export or
transfer of an item on the MTCR Annex, the term
‘foreign person’, in addition to the meaning set forth
in section 116(13), means, in the case of countries
with nonmarket economies (other than former mem-
bers of the Warsaw Pact)—
(i) all activities of the government of any
such country relating to the development or
production of any missile equipment or tech-
nology; and
(ii) all activities of that government affect-
ing the development or production of elec-
tronics, space systems or equipment, and mili-
tary aircraft.
(B) As used in subparagraph (A), the term
‘‘missile equipment or technology’ means those items
listed in category I or II of the MTCR Annex.
(d) SANCTIONS AGAINST COUNTRIES FOR USE OF
CHEMICAL OR BIOLOGICAL WEAPONS.—
(1) DETERMINATION.—
149
(A) IN
GENERAL.—Whenever persuasive
information becomes available to the executive
branch indicating the substantial possibility
that, on or after the date of the enactment of
this Act, the government of a foreign country
has made substantial preparation to use or has
used chemical or biological weapons in violation
of international law or has used lethal chemical
or biological weapons against its own nationals,
the President shall, within 60 days after the re-
ceipt of such information by the executive
branch, determine whether that government, on
or after such date of enactment, has used chem-
ical or biological weapons in violation of inter-
national law, or has used lethal chemical or bio-
logical weapons against its own nationals.
(B) MATTERS
TO
BE
CONSIDERED.—In
making the determination under subparagraph
(A), the President shall consider the following:
(i) All physical and circumstantial evi-
dence available bearing on the possible use
of chemical or biological weapons.
(ii) All information provided by al-
leged victims, witnesses, and independent
observers.
150
(iii) The extent of the availability of
the weapons in question to the purported
user.
(iv) All official and unofficial state-
ments bearing on the possible use of such
weapons.
(v) Whether, and to what extent, the
government in question is willing to honor
a request from the Secretary General of
the United Nations to grant timely access
to a United Nations fact-finding team to
investigate the possibility of chemical or bi-
ological weapons use or to grant such ac-
cess to other legitimate outside parties.
(2) DETERMINATION TO BE REPORTED TO CON-
GRESS.—Upon making a determination under para-
graph (1), the President shall promptly report that
determination to the Congress. If the determination
is that a foreign government has used such weapons
as described in that paragraph, the report shall
specify the sanctions to be imposed pursuant to
paragraph (4).
(3) CONGRESSIONAL REQUESTS; REPORT.—
(A) REQUEST.—The Chairman of the
Committee on Foreign Relations of the Senate
151
(upon consultation with the ranking minority
member of such committee) or the Chairman of
the Committee on Foreign Affairs of the House
of Representatives (upon consultation with the
ranking minority member of such committee)
may at any time request the President to con-
sider whether a particular foreign government,
on or after the date of the enactment of this
Act, has used chemical or biological weapons in
violation of international law or has used lethal
chemical or biological weapons against its own
nationals.
(B) REPORT
TO
CONGRESS.—Not later
than 60 days after receiving such a request, the
President shall provide to the Chairman of the
Committee on Foreign Relations of the Senate
and the Chairman of the Committee on Foreign
Affairs of the House of Representatives a writ-
ten report on the information held by the execu-
tive branch which is pertinent to the issue of
whether the specified government, on or after
the date of the enactment of this Act, has used
chemical or biological weapons in violation of
international law or has used lethal chemical or
biological weapons against its own nationals.
152
The report under this subparagraph shall con-
tain an analysis of each of the items enumer-
ated in paragraph (1)(B).
(4) MANDATORY
SANCTIONS
FOR
USE
OF
CHEMICAL OR BIOLOGICAL WEAPONS.—The follow-
ing sanctions shall be imposed for a minimum of 2
years in the event the President makes an affirma-
tive determination under paragraph (1) with respect
to the government of a foreign country:
(A) FOREIGN
ASSISTANCE.—The United
States Government shall terminate assistance to
that country under the Foreign Assistance Act
of 1961, except for urgent humanitarian assist-
ance and food or other agricultural commodities
or products.
(B) ARMS
SALES.—The United States
Government shall—
(i) terminate sales to that country
under the Arms Export Control Act of any
defense articles, defense services, or design
and construction services; and
(ii) terminate and deny licenses for
the export to that country of any item on
the United States Munitions list.
153
(C) ARMS SALES FINANCING.—The United
States Government shall terminate all foreign
military financing for that country under the
Arms Export Control Act.
(D) DENIAL OF UNITED STATES GOVERN-
MENT
CREDIT
OR
OTHER
FINANCIAL
ASSIST-
ANCE.—The United States Government shall
deny to that country any credit, credit guaran-
tees, or other financial assistance by any de-
partment, agency, or instrumentality of the
United States Government, including the Ex-
port-Import Bank of the United States.
(E) EXPORTS
OF
NATIONAL
SECURITY-
SENSITIVE ITEMS.—The authorities of this title
shall be used to prohibit the export to that
country of any commodities or technology con-
trolled or prohibited for export under section
106(i).
(F) IMPORTS.—There shall be a prohibi-
tion on the importation into the United States
of goods that are the growth, produce, or man-
ufacture of that country. The President shall
determine the type and volume of imports to be
prohibited, taking into consideration the volume
of exports prohibited under subparagraph (E).
155
3 of subparagraphs (A) through (F) of paragraph
(6).
(6) ADDITIONAL
SANCTIONS
FOR
USE
OF
CHEMICAL
OR
BIOLOGICAL
WEAPONS.—The sanc-
tions referred to in paragraph (5) are the following:
(A) MULTILATERAL DEVELOPMENT BANK
ASSISTANCE.—The United States Government
shall oppose, in accordance with section 701 of
the International Financial Institutions Act (22
U.S.C. 262d), the extension of any loan or fi-
nancial or technical assistance to the foreign
country by international financial institutions.
(B) BANK
LOANS.—The United States
Government shall prohibit any United States
bank from making any loan or providing any
credit to the government of that country, except
for loans or credits for the purpose of purchas-
ing food or other agricultural commodities or
products.
(C) FURTHER RESTRICTIONS.—(i) The au-
thorities of this title shall be used to prohibit
exports to that country of all items (except for
those items described in section 114(k)).
(ii) Restrictions shall be imposed on the
importation into the United States of goods
156
(which may include petroleum or any petroleum
product) that are the growth, product, or man-
ufacture of that country.
(D) DIPLOMATIC RELATIONS.—The Presi-
dent shall use his constitutional authorities to
downgrade or suspend diplomatic relations be-
tween the United States and the government of
that country.
(E) PRESIDENTIAL
ACTION
REGARDING
AVIATION.—
(i)(I) Within 10 days after the date
on which the President provides notice to
the government of that country, the Presi-
dent shall direct the Secretary of Trans-
portation, notwithstanding any air services
agreement that may be in effect between
the United States and that country, to sus-
pend or terminate as soon as practicable
the authority of any foreign air carrier of
that country to engage in foreign air trans-
portation.
(II) The President may direct the
Secretary of State to terminate any bilat-
eral air service agreement between the
United States and that country, in accord-
157
ance with the provisions of that agreement,
and direct the Secretary of Transportation
to terminate the authority of any foreign
air carrier of that country to engage in for-
eign air transportation at the earliest pos-
sible date after the agreement ceases to be
effective.
(ii) The Secretary of Transportation
may make such exceptions from the for-
eign air carrier authority provisions of
subclauses (I) and (II) of clause (i) as he
or she considers necessary to provide for
emergencies in which the safety of an air-
craft or its crew or passengers would be
threatened.
(iii) For purposes of this subpara-
graph, the terms ‘‘air transportation’’,
‘‘foreign air carrier’’, and ‘‘foreign air
transportation’’ have the meanings given
those terms in section 101 of the Federal
Aviation Act of 1958 (49 U.S.C. App.
1301).
(e) REMOVAL OF SANCTIONS.—
(1) FOR VIOLATIONS UNDER SUBSECTION (c).—
The President shall remove the sanctions imposed
158
under paragraph (1) or (2) of subsection (c) if the
President determines and so certifies to the Con-
gress, after the end of the 12-month period begin-
ning on the date on which the sanctions were ini-
tially imposed, that—
(A) reliable information indicates that—
(i) the United States person with re-
spect to which the determination was made
under subsection (c)(1) has ceased all ac-
tivities that gave rise to the sanctions; or
(ii) the foreign person with respect to
which the determination was made under
subsection (c)(2) has ceased to contribute
to the efforts of any government, group,
entity, or project to use, design, develop,
produce, stockpile, or otherwise acquire
chemical or biological weapons or missiles;
and
(B) the President has received reliable as-
surances from that United States person or for-
eign person that such person will not, in the fu-
ture, perform any of the actions described in
subsection (c) (1) or (2) (as the case may be).
(2) FOR
VIOLATIONS
UNDER
SUBSECTION
(d).—The President shall remove the sanctions im-
159
posed with respect to a country under paragraph (4)
or (6) of subsection (d) if the President determines
and so certifies to the Congress, after the end of the
12-month period beginning on the date on which
such sanctions were initially imposed, that—
(A) the government of that country has
provided reliable assurances that it will not use
chemical or biological weapons in violation of
international law and will not use lethal chemi-
cal or biological weapons against its own na-
tionals;
(B) the government is not making prepara-
tions to use chemical or biological weapons in
violation of international law or to use lethal
chemical or biological weapons against its own
nationals;
(C) the government is willing to allow on-
site inspections by United Nations observers or
other internationally recognized, impartial ob-
servers to verify that it is not making prepara-
tions to use chemical or biological weapons in
violation of international law or to use lethal
chemical or biological weapons against its own
nationals, or other reliable means exist to verify
that it is not making such preparations; and
160
(D) the government is making restitution
to those affected by any use of chemical or bio-
logical weapons in violation of international law
or by any use of lethal chemical or biological
weapons against its own nationals.
(3) AUTHORITY TO REVOKE IMPORT SANCTIONS
IN CERTAIN CIRCUMSTANCES.—The President may
revoke any import sanction imposed under sub-
section (c) or (d) if the President determines, as a
result of applicable international dispute settlement
proceedings, that the imposition of such sanctions is
inconsistent with international legal obligations of
the United States and that it is appropriate under
the circumstances to comply with such obligations.
(f) WAIVERS FOR VIOLATIONS UNDER SUBSECTION
(c).—
(1) WAIVER.—The President may waive the im-
position of sanctions under paragraph (1) or (2) of
subsection (c) with respect to a product or service if
the President certifies to the Congress that—
(A) the product or service is essential to
the national security of the United States; and
(B) the sanctioned entity is a sole source
supplier of the product or service, the product
or service is not available from any alternative
161
reliable supplier, and the need for the product
or service cannot be met in a timely manner by
improved manufacturing processes or techno-
logical developments.
(2) ADDITIONAL WAIVER.—(A) The President
may waive the imposition of any sanction under sub-
section (c)(2) if the President determines such waiv-
er is essential to the national security of the United
States.
(B) If the President decides to apply the waiver
described in subparagraph (A), the President shall
so notify the Congress not less than 20 days before
issuing the waiver. Such notification shall include a
report fully articulating the rationale and cir-
cumstances which led the President to exercise the
waiver authority.
(3) EXCEPTIONS.—The President shall not
apply the sanction under subsection (c)(2) prohibit-
ing the importation of the products of a sanctioned
entity—
(A) in the case of procurement of defense
articles or defense services—
(i) under existing contracts or sub-
contracts, including the exercise of options
for production quantities to satisfy require-
162
ments essential to the national security of
the United States;
(ii) if the President determines that
the entity to which the sanctions would be
applied is a sole source supplier of the de-
fense articles and services, that the defense
articles or services are essential to the na-
tional security of the United States, 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 of the United States
under defense coproduction agreements or
Programs of Cooperation of the North At-
lantic Treaty Organization;
(B) to products or services provided under
contracts entered into before the date on which
the President publishes his intention to impose
the sanctions; or
(C) to—
(i) spare parts;
(ii) components parts, but not finished
products, essential to United States prod-
ucts or production;
163
(iii) routine services and maintenance
of products, to the extent that alternative
sources are not readily or reasonably avail-
able; or
(iv) information or technology essen-
tial to United States products or produc-
tion.
(4) 
EXEMPTION
FOR
CERTAIN
TRANS-
ACTIONS.—The President shall not apply the sanc-
tion under paragraph (1)(B)(i) or paragraph
(2)(B)(i) of subsection (c) with respect to any trans-
action subject to the reporting requirements under
title V of the National Security Act of 1947, relating
to congressional oversight of intelligence activities.
(g) WAIVERS OF VIOLATIONS UNDER SUBSECTION
(d).—
(1) CRITERIA
FOR
WAIVER.—The President
may waive the application of any sanction imposed
with respect to a country under paragraph (4) or (6)
of subsection (d)—
(A) if—
(i) in the case of any sanction other
than a sanction specified in subsection
(d)(4)(F) or (d)(6)(C)(ii) (relating to im-
port restrictions) or (d)(6)(D) (relating to
164
the downgrading or suspension of diplo-
matic relations), the President determines
and certifies to the Congress that such
waiver is essential to the national security
interests of the United States, and the
President notifies the Committee on For-
eign Relations of the Senate and the Com-
mittee on Foreign Affairs of the House of
Representatives of his determination and
certification at least 15 days before the
waiver takes effect, in accordance with the
procedures applicable to reprogramming
notifications under section 634A of the
Foreign Assistance Act of 1961; or
(ii) in the case of any sanction speci-
fied in subsection (d)(4)(F) or (d)(6)(C)(ii)
(relating to import restrictions), the Presi-
dent determines and certifies to the Con-
gress that such waiver is essential to the
national security interests of the United
States, and the President notifies the Com-
mittee on Finance of the Senate and the
Committee on Ways and Means and the
Committee on Foreign Affairs of the
House of Representatives of his determina-
165
tion and certification at least 15 days be-
fore the waiver takes effect; or
(B) if the President determines and cer-
tifies to the Congress that there has been a fun-
damental change in the leadership and policies
of the government of that country, and if the
President notifies the Congress at least 20 days
before the waiver takes effect.
(2) REPORT.—In the event that the President
decides to exercise the waiver authority provided in
paragraph (1) with respect to a country, the Presi-
dent’s notification to the Congress under such para-
graph shall include a report fully articulating the ra-
tionale and circumstances which led the President to
exercise that waiver authority, including a descrip-
tion of the steps which the government of that coun-
try has taken to satisfy the conditions set forth in
subparagraphs (A) through (D) of subsection (e)(2).
(h) CONTRACT SANCTITY.—
(1) SANCTIONS
NOT
APPLIED
TO
EXISTING
CONTRACTS.—(A) A sanction described in subpara-
graph (D), (E), or (F) of subsection (d)(4) or in any
of subparagraphs (A) through (C) of subsection
(d)(6) shall not apply to any activity pursuant to
any contract or international agreement entered into
166
before the date of the presidential determination
under subsection (d)(1) unless the President deter-
mines, on a case-by-case basis, that to apply such
sanction to that activity would prevent the perform-
ance of a contract or agreement that would have the
effect of assisting a country in using chemical or bi-
ological weapons in violation of international law or
in using lethal chemical or biological weapons
against its own nationals.
(B) The same restrictions of section 114(l) (re-
lating to contract sanctity) which are applicable to
exports prohibited under this title shall apply to ex-
ports prohibited under subsection (d)(4)(E) or
(d)(6)(C)(i). For purposes of this subparagraph, any
contract or agreement the performance of which (as
determined by the President) would have the effect
of assisting a foreign government in using chemical
or biological weapons in violation of international
law or in using chemical or biological weapons
against its own nationals shall be treated as con-
stituting a breach of the peace that poses a serious
and direct threat to the strategic interest of the
United States, within the meaning of subparagraph
(A) of section 114(l)(2).
167
(2) SANCTIONS
APPLIED
TO
EXISTING
CON-
TRACTS.—The sanctions described in subparagraphs
(A), (B), and (C) of subsection (d)(4) shall apply to
contracts, agreements, and licenses without regard
to the date the contract or agreement was entered
into or the license was issued (as the case may be),
except that such sanctions shall not apply to any
contract or agreement entered into or license issued
before the date of the presidential determination
under subsection (d)(1) if the President determines
that the application of such sanction would be det-
rimental to the national security interests of the
United States.
(i) PROTECTION OF CLASSIFIED INFORMATION.—To
the extent practicable, reports submitted under this sec-
tion should be based on unclassified information. Portions
of such reports may be classified.
(j) STAY ON IMPOSITION OF SANCTIONS.—
(1) AUTHORITY
OF
THE
PRESIDENT.—The
President may stay the imposition of sanctions
under subsection (c) on any entity in order to pro-
tect—
(A) any ongoing criminal investigation; or
(B) sensitive intelligence sources and meth-
ods which are being used to acquire further in-
168
formation on the proliferation of chemical or bi-
ological weapons or missiles that would be com-
promised by the publication of the sanctioned
entity’s name.
(2) DETERMINATION OF THE PRESIDENT.—The
President may exercise the authority under para-
graph (1) when the President determines that the
nonproliferation goals of this section are better
served by delaying the imposition of sanctions rather
than by compromising the criminal investigation or
intelligence sources or methods concerned.
(3) LIFTING OF STAY.—The President shall lift
any stay imposed under this subsection as soon as
the basis for imposing the stay no longer exists, but
in no case later than 30 days after the imposition
of the stay.
SEC. 112. ADMINISTRATIVE AND JUDICIAL REVIEW.
(a) APPLICABILITY.—
(1) EXEMPTIONS FROM ADMINISTRATIVE PRO-
CEDURE.—Except as provided in this section, sec-
tions 551 and 553 through 559 of title 5, United
States Code, do not apply to the functions exercised
under this title.
(2) JUDICIAL
REVIEW.—(A) Subject to sub-
paragraphs (B) and (C) and except as otherwise
169
provided in this section, actions under this title shall
be subject to judicial review under chapter 7 of title
5, United States Code.
(B) Any discretionary determination of whether
a commodity or technology should or should not be
on the control index shall not be subject to judicial
review.
(C) An action to obtain judicial review under
this subsection may be brought in the appropriate
United States district court.
(b) PROCEDURES RELATING TO CIVIL PENALTIES
AND SANCTIONS.—
(1) ADMINISTRATIVE PROCEDURES.—Any civil
penalty or administrative sanction under section
110(c), and any sanction under section 111(c)(1),
may be imposed only after notice and opportunity
for an agency hearing on the record in accordance
with sections 554 through 557 of title 5, United
States Code.
(2) AVAILABILITY OF CHARGING LETTER.—Any
charging letter or other document initiating adminis-
trative proceedings for the imposition of sanctions
for violations of the regulations issued under section
108(a) shall be made available for public inspection
and copying.
170
(c) COLLECTION.—If any person fails to pay a civil
penalty imposed under section 110(c), the Secretary may
ask the Attorney General to bring a civil action in an ap-
propriate district court to recover the amount imposed
(plus interest at currently prevailing rates from the date
of the final order).
(d) IMPOSITION OF TEMPORARY DENIAL ORDERS.—
(1) GROUNDS FOR IMPOSITION.—In any case in
which there is reasonable cause to believe that a per-
son is engaged in or is about to engage in any act
or practice which constitutes or would constitute a
violation of this title, or any regulation, order, or li-
cense issued under this title, or in any case in which
a criminal indictment has been returned against a
person alleging a violation of this title or any of the
statutes listed in section 110(f), the Secretary may,
without a hearing, issue an order temporarily deny-
ing that person’s United States export privileges
(hereafter in this subsection referred to a ‘‘tem-
porary denial order’’). A temporary denial order may
be effective for no longer than 180 days, but may be
renewed by the Secretary, following notice and an
opportunity for a hearing, for additional periods of
not more than 180 days each.
171
(2) ADMINISTRATIVE APPEALS.—The person or
persons subject to the issuance or renewal of a tem-
porary denial order may appeal the issuance or re-
newal of the temporary denial order, supported by
briefs and other material, to an administrative law
judge who shall, within 15 working days after the
appeal is filed, issue a decision affirming, modifying,
or vacating the temporary denial order. The tem-
porary denial order shall be affirmed if it is shown
that—
(A) there is reasonable cause to believe
that the person subject to the order is engaged
in or is about to engage in any act or practice
which constitutes or would constitute a violation
of this title, or any regulation, order, or license
issued under this title, or
(B) a criminal indictment has been re-
turned against the person subject to the order
alleging a violation of this title or any of the
statutes listed in section 110(f).
The decision of the administrative law judge shall be
final unless, within 10 working days after the date
of the administrative law judge’s decision, an appeal
is filed with the Secretary. On appeal, the Secretary
shall either affirm, modify, reverse, or vacate the de-
172
cision of the administrative law judge by written
order within 10 working days after receiving the ap-
peal. 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 administrative law judge and the Secretary
shall constitute the administrative record for pur-
poses of review by the court.
(3) COURT
APPEALS.—An order of the Sec-
retary affirming, in whole or in part, the issuance or
renewal of a temporary denial order may, within 15
days after the order is issued, be appealed by a per-
son subject to the order to the United States Court
of Appeals for the District of Columbia Circuit,
which shall have jurisdiction of the appeal. The
court may review only those issues necessary to de-
termine whether the issuance of the temporary de-
nial order was based on reasonable cause to believe
that the person subject to the order was engaged in
or was about to engage in any act or practice which
constitutes or would constitute a violation of this
title, or any regulation, order, or license issued
under this title, or if a criminal indictment has been
returned against the person subject to the order al-
leging a violation of this title or any of the statutes