137
through the United States in violation of this
title.
(ii) Detain and search any package or con-
tainer in which the officer or employee has rea-
sonable cause to suspect there is any item that
has been, is being, or is about to be exported
from or transited through the United States in
violation of this title.
(iii) Detain (after search) or seize any
item, for purposes of securing for trial or for-
feiture to the United States, on or about such
vehicle, vessel, aircraft, or person or in such
package or container, if the officer or employee
has probable cause to believe the item has been,
is being, or is about to be exported from or
transited through the United States in violation
of this title.
(4) OTHER AUTHORITIES NOT AFFECTED.—The
authorities conferred by this section are in addition
to any authorities conferred under other laws.
(b) FORFEITURE.—Any commodities or tangible
items lawfully seized under subsection (a) by designated
officers or employees shall be subject to forfeiture to the
United States. Those provisions of law relating to—
138
(1) the seizure, summary and judicial forfeiture,
and condemnation of property for violations of the
customs laws,
(2) the disposition of such property or the pro-
ceeds from the sale thereof,
(3) the remission or mitigation of such forfeit-
ures, and
(4) the compromise of claims,
shall apply to seizures and forfeitures incurred, or alleged
to have been incurred, under the provisions of this sub-
section, insofar as applicable and not inconsistent with
this title; except that such duties as are imposed upon the
customs officer or any other person with respect to the
seizure and forfeiture of property under the customs laws
may be performed with respect to seizures and forfeitures
of property under this subsection by the Secretary or such
officers and employees of the Department of Commerce
as may be authorized or designated for that purpose by
the Secretary, or, upon the request of the Secretary, by
any other agency that has authority to manage and dis-
pose of seized property.
(c) REFERRAL OF CASES.—All cases involving viola-
tions of this title shall be referred to the Secretary for
purposes of determining civil penalties and administrative
sanctions under section 110(c), or to the Attorney General
139
for criminal action in accordance with this title or to both
the Secretary and the Attorney General.
(d) UNDERCOVER INVESTIGATION OPERATIONS.—
(1) USE OF FUNDS.—With respect to any un-
dercover investigative operation conducted by the Of-
fice of Export Enforcement of the Department of
Commerce (hereafter in this subsection referred to
as ‘‘OEE’’) necessary for the detection and prosecu-
tion of violations of this title—
(A) funds made available for export en-
forcement under this title may be used to pur-
chase property, buildings, and other facilities,
and to lease space within the United States,
without regard to sections 1341 and 3324 of
title 31, United States Code, the third undesig-
nated paragraph under the heading of ‘‘MIS-
CELLANEOUS’’ of the Act of March 3, 1877 (40
U.S.C. 34), sections 3732(a) and 3741 of the
Revised Statutes of the United States (41
U.S.C. 11(a) and 22), and subsections (a) and
(c) of section 304, and section 305 of the Fed-
eral Property and Administrative Services Act
of 1949 (41 U.S.C. 254(a) and (c) and 255),
(B) funds made available for export en-
forcement under this title may be used to estab-
140
lish or to acquire proprietary corporations or
business entities as part of an undercover oper-
ation, and to operate such corporations or busi-
ness entities on a commercial basis, without re-
gard to section 9102 of title 31, United States
Code,
(C) funds made available for export en-
forcement under this title and the proceeds
from undercover operations may be deposited in
banks or other financial institutions without re-
gard to the provisions of section 648 of title 18,
United States Code, and section 3302 of title
31, United States Code, and
(D) the proceeds from undercover oper-
ations may be used to offset necessary and rea-
sonable expenses incurred in such operations
without regard to the provisions of section 3302
of title 31, United States Code,
if the Director of OEE (or an officer or employee
designated by the Director) certifies, in writing, that
the action authorized by subparagraph (A), (B), (C),
or (D) for which the funds would be used is nec-
essary for the conduct of the undercover operation.
(2) DISPOSITION OF BUSINESS ENTITIES.—If a
corporation or business entity established or ac-
141
quired as part of an undercover operation with a net
value of more than $50,000 is to be liquidated, sold,
or otherwise disposed of, the Director of OEE shall
report the circumstances to the Secretary and the
Comptroller General, as much in advance of such
disposition as the Director of OEE or his or her des-
ignee determines is practicable. The proceeds of the
liquidation, sale, or other disposition, after obliga-
tions incurred by the corporation or business enter-
prise are met, shall be deposited in the Treasury of
the United States as miscellaneous receipts.
(3) DEPOSIT OF PROCEEDS.—As soon as the
proceeds from an OEE undercover investigative op-
eration with respect to which an action is authorized
and carried out under this subsection are no longer
necessary for the conduct of such operation, such
proceeds or the balance of such proceeds remaining
at the time shall be deposited into the Treasury of
the United States as miscellaneous receipts.
(4) AUDIT AND REPORT.—(A) The Director of
OEE shall conduct a detailed financial audit of each
OEE undercover investigative operation which is
closed and shall submit the results of the audit in
writing to the Secretary. Not later than 180 days
after an undercover operation is closed, the Sec-
142
retary shall submit to the Congress a report on the
results of the audit.
(B) The Secretary shall submit annually to the
Congress a report, which may be included in the an-
nual report under section 115, specifying the follow-
ing information:
(i) The number of undercover investigative
operations pending as of the end of the period
for which such report is submitted.
(ii) The number of undercover investigative
operations commenced in the 1-year period pre-
ceding the period for which such report is sub-
mitted.
(iii) The number of undercover investiga-
tive operations closed in the 1-year period pre-
ceding the period for which such report is sub-
mitted and, with respect to each such closed un-
dercover operation, the results obtained and any
civil claims made with respect thereto.
(5) DEFINITIONS.—For purposes of paragraph
(4)—
(A) the term ‘‘closed’’, with respect to an
undercover investigative operation, refers to the
earliest point in time at which all criminal pro-
ceedings (other than appeals) pursuant to the
143
investigative operation are concluded, or covert
activities pursuant to such operation are con-
cluded, whichever occurs later;
(B) the terms ‘‘undercover investigative
operation’’ and ‘‘undercover operation’’ mean
any undercover investigative operation con-
ducted by OEE—
(i) in which the gross receipts (exclud-
ing interest earned) exceed $25,000, or ex-
penditures (other than expenditures for
salaries of employees) exceed $75,000, and
(ii) which is exempt from section 3302
or 9102 of title 31, United States Code,
except that clauses (i) and (ii) shall not apply
with respect to the report to the Congress re-
quired by subparagraph (B) of paragraph (4);
and
(C) the term ‘‘employees’’ means employ-
ees, as defined in section 2105 of title 5, United
States Code, of the Department of Commerce.
(e) REFERENCE TO ENFORCEMENT.—For purposes
of this section, a reference to the enforcement of this title
or to a violation of this title includes a reference to the
enforcement or a violation of any regulation, license, or
order issued under this title.
144
SEC. 114. EXPORT CONTROL AUTHORITIES AND PROCE-
DURES.
(a) POLICY GUIDANCE.—
(1) IN GENERAL.—As directed by the Presi-
dent, annual policy guidance shall be issued to pro-
vide detailed implementing guidance to export licens-
ing officials in all appropriate departments and
agencies.
(2) ELEMENTS OF ANNUAL POLICY REVIEW.—
In order to develop such annual policy guidance, ex-
port controls and other regulations to implement
this title shall be reviewed annually. This annual pol-
icy review shall include an evaluation of the benefits
and costs of the imposition, extension, or removal of
controls under this title. This review shall include—
(A) an assessment by the Secretary of the
economic consequences of the imposition, exten-
sion, or removal of controls during the preced-
ing 12 months, including the impact on United
States exports and jobs;
(B) an assessment by the Secretary of
State of the objectives of the controls in effect
during the preceding 12 months, and the extent
to which the controls have served those objec-
tives; and
145
(C) an assessment by the Secretary of De-
fense of the impact that the imposition, exten-
sion, or removal of controls during the preced-
ing 12 months has had on United States na-
tional security.
(b) EXPORT
CONTROL
AUTHORITY
AND
FUNC-
TIONS.—
(1) IN GENERAL.—Unless otherwise reserved to
the President or a department or agency outside the
Department of Commerce, all power, authority, and
discretion conferred by this title shall be exercised by
the Secretary.
(2) DELEGATION OF FUNCTIONS OF THE SEC-
RETARY.—The Secretary may delegate any function
under this title to the Under Secretary of Commerce
for Export Administration appointed under sub-
section (d) or to any other officer of the Department
of Commerce.
(c) EXPORT CONTROL POLICY COMMITTEE.—
(1) ESTABLISHMENT.—There is established an
Export Control Policy Committee (hereafter in this
subsection referred to as the ‘‘Committee’’).
(2) FUNCTIONS.—The Committee shall—
146
(A) provide policy guidance and advice to
the President on export control issues under
this title;
(B) review policy recommendations pro-
posed by the Secretary and other members of
the Committee; and
(C) receive policy recommendations from
other departments and agencies and resolve pol-
icy disputes among departments and agencies
under this title.
(3) MEMBERSHIP.—The Committee shall in-
clude the Secretary, the Secretary of Defense, the
Secretary of Energy, the heads of other relevant de-
partments, and appropriate officials of the Executive
Office of the President.
(4) CHAIR.—The Committee shall be chaired by
the President or his designee.
(5) DELEGATION; OTHER REPRESENTATIVES.—
A member of the Committee under paragraph (3)
may designate the deputy head of his or her depart-
ment or agency to serve in his or her absence as a
member of the Committee, but this authority may
not be delegated to any other individual. The chair
may also invite the temporary participation in the
Committee’s meetings of representatives from other
147
offices and agencies as appropriate to the issues
under consideration.
(6) MEETINGS.—The chair of the Committee
may call a meeting of the Committee. Meetings shall
not be subject to section 552b of title 5, United
States Code.
(d) UNDER SECRETARY OF COMMERCE; ASSISTANT
SECRETARIES.—
(1) APPOINTMENT.—The President shall ap-
point, by and with the advice and consent of the
Senate, an Under Secretary of Commerce for Export
Administration who shall carry out all functions of
the Secretary under this title and other provisions of
law relating to national security, as the Secretary
may delegate. The President shall appoint, by and
with the advice and consent of the Senate, two As-
sistant Secretaries of Commerce to assist the Under
Secretary in carrying out such functions.
(2) TRANSITION
PROVISIONS.—Those individ-
uals serving in the positions of Under Secretary of
Commerce for Export Administration and Assistant
Secretaries of Commerce under section 15(a) of the
Export Administration Act of 1979, on the day be-
fore the date of the enactment of this Act, shall be
deemed to have been appointed under paragraph (1),
149
section 104(f) in amending regulations issued under this
title.
(g) CONFIDENTIALITY OF INFORMATION.—
(1) EXEMPTIONS FROM DISCLOSURE.—
(A) INFORMATION OBTAINED ON OR BE-
FORE JUNE 30, 1980.—Except as otherwise pro-
vided 
by 
the 
third 
sentence 
of 
section
108(b)(2), information obtained under the Ex-
port Administration Act of 1979 and its prede-
cessor statutes on or before June 30, 1980,
which is deemed confidential, including Ship-
per’s Export Declarations, or with reference to
which a request for confidential treatment is
made by the person furnishing such informa-
tion, shall not be subject to disclosure under
section 552 of title 5, United States Code, and
such information shall not be published or dis-
closed unless the Secretary determines that the
withholding thereof is contrary to the national
interest.
(B) INFORMATION OBTAINED AFTER JUNE
30, 1980.—Except as otherwise provided by the
third sentence of section 108(b)(2), information
obtained under this title or under the Export
Administration Act of 1979 after June 30,