133
outside 
the 
United 
States, 
prelicense 
and
postshipment verifications of items licensed for ex-
port and investigations in the enforcement of section
108. The Secretary, and officers and employees of
the Department of Commerce designated by the Sec-
retary, are authorized to search, detain (after
search), and seize items at those places within the
United States other than those ports specified in
subparagraph (B). The search, detention (after
search), or seizure of items at those ports and places
specified in subparagraph (B) may be conducted by
officers and employees of the Department of Com-
merce only with the concurrence of the Commis-
sioner of Customs or a person designated by the
Commissioner.
(D) The Secretary and the Commissioner of
Customs may enter into agreements and arrange-
ments for the enforcement of this title, including for-
eign investigations and information exchange.
(3) SPECIFIC AUTHORITIES.—(A) Any officer or
employee designated under paragraph (2) may do
the following in carrying out the enforcement au-
thority under this title:
(i) Make investigations of, obtain informa-
tion from, make inspection of any books,
134
records, or reports (including any writings re-
quired to be kept by the Secretary), premises,
or property of, and take the sworn testimony of,
any person.
(ii) Administer oaths or affirmations, and
by subpoena require any person to appear and
testify or to appear and produce books, records,
and other writings, or both. In the case of con-
tumacy by, or refusal to obey a subpoena issued
to, any such person, a district court of the
United States, on request of the Attorney Gen-
eral and after notice to any such person and a
hearing, shall have jurisdiction to issue an order
requiring such person to appear and give testi-
mony or to appear and produce books, records,
and other writings, or both. Any failure to obey
such order of the court may be punished by
such court as a contempt thereof. The attend-
ance of witnesses and the production of docu-
ments provided for in this clause may be re-
quired from any State, the District of Colum-
bia, or in any territory of the United States at
any designated place. Witnesses subpoenaed
under this subsection shall be paid the same
135
fees and mileage as are paid witnesses in the
district courts of the United States.
(B)(i) Any officer or employee of the Office of
Export Enforcement of the Department of Com-
merce who is designated by the Secretary under
paragraph (2), and any officer or employee of the
United States Customs Service who is designated by
the Commissioner of Customs under paragraph (2),
may do the following in carrying out the enforce-
ment authority under this title:
(I) Execute any warrant or other process
issued by a court or officer of competent juris-
diction with respect to the enforcement of this
title.
(II) Make arrests without warrant for any
violation of this title committed in his or her
presence or view, or if the officer or employee
has probable cause to believe that the person to
be arrested has committed, is committing, or is
about to commit such a violation.
(III) Carry firearms.
(ii) Officers and employees of the Office of Ex-
port Enforcement designated by the Secretary under
paragraph (2) shall exercise the authorities set forth
136
in clause (i) pursuant to guidelines approved by the
Attorney General.
(C) Any officer or employee of the United
States Customs Service designated by the Commis-
sioner of Customs under paragraph (2) may do the
following in carrying out the enforcement authority
under this title:
(i) Stop, search, and examine a vehicle,
vessel, aircraft, or person on which or whom the
officer or employee has reasonable cause to sus-
pect 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.
(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
137
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—
(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
138
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
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
139
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-
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
140
(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-
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-
141
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-
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.
142
(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
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,
143
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.
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
144
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 or 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
(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.
145
(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—
(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-
146
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
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
147
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),
by and with the advice and consent of the Senate,
as of such date of enactment.
(e) ISSUANCE OF REGULATIONS.—The President and
the Secretary may issue such regulations as are necessary
to carry out this title. Any such regulations the purpose
of which is to carry out section 105, 106, or 111(a) may
be issued only after the regulations are submitted for re-
view to such departments or agencies as the President con-
siders appropriate. The Secretary shall consult with the
appropriate export advisory committee appointed under
section 104(f) in formulating regulations under this title.
The second sentence of this subsection does not require
148
the concurrence or approval of any official, department,
or agency to which such regulations are submitted.
(f) AMENDMENTS
TO REGULATIONS.—If the Sec-
retary proposes to amend regulations issued under this
title, the Secretary shall report to the Committee on Bank-
ing, Housing, and Urban Affairs of the Senate and the
Speaker of the House of Representatives on the intent and
rationale of such amendments. Such report shall evaluate
the cost and burden to the United States exporters of the
proposed amendments in relation to any enhancement of
licensing objectives. The Secretary shall consult with the
appropriate export advisory committees appointed under
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
149
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,
1980, may be withheld from disclosure only to
the extent permitted by statute, except that in-
formation submitted, obtained, or considered in
connection with an application for an export li-
cense or other export authorization under the
Export Administration Act of 1979 or this title,
including—
(i) the export license or other export
authorization itself,
(ii) classification requests described in
section 109(h)(1),
150
(iii) information obtained during the
course of an assessment under subsection
(k),
(iv) information or evidence obtained
in the course of any investigation, and
(v) information obtained or furnished
under this title in connection with inter-
national agreements, treaties, or obliga-
tions,
shall be withheld from public disclosure and
shall not be subject to disclosure under section
552 of title 5, United States Code, unless the
release of such information is determined by the
Secretary to be in the national interest.
(2) INFORMATION TO CONGRESS AND GAO.—
(A) IN
GENERAL.—Nothing in this title
shall be construed as authorizing the withhold-
ing of information from the Congress or from
the General Accounting Office.
(B) AVAILABILITY TO THE CONGRESS.—
(i) IN GENERAL.—All information ob-
tained at any time under this title or pre-
vious Acts regarding the control of exports,
including any report or license application
required under this title, shall be made
151
available to any committee or subcommit-
tee of Congress of appropriate jurisdiction
upon the request of the chairman or rank-
ing minority member of such committee or
subcommittee.
(ii) PROHIBITION ON FURTHER DIS-
CLOSURE.—No committee, subcommittee,
or Member of Congress shall disclose any
information obtained under this title or
previous Acts regarding the control of ex-
ports which is submitted on a confidential
basis to the Congress under clause (i) un-
less the full committee to which the infor-
mation is made available determines that
the withholding of the information is con-
trary to the national interest.
(C) AVAILABILITY TO THE GAO.—
(i) IN
GENERAL.—Notwithstanding
paragraph (1), information referred to in
subparagraph (B) shall, consistent with
the protection of intelligence, counterintel-
ligence, and law enforcement sources,
methods, and activities, as determined by
the agency that originally obtained the in-
formation, and consistent with the provi-
152
sions of section 716 of title 31, United
States Code, be made available only by the
agency, upon request, to the Comptroller
General of the United States or to any of-
ficer or employee of the General Account-
ing Office authorized by the Comptroller
General to have access to such informa-
tion.
(ii) PROHIBITION ON FURTHER DIS-
CLOSURES.—No officer or employee of the
General Accounting Office shall disclose,
except to the Congress in accordance with
this paragraph, any such information
which is submitted on a confidential basis
and from which any individual can be iden-
tified.
(3) INFORMATION
EXCHANGE.—Notwithstand-
ing paragraph (1), the Secretary and the Commis-
sioner of Customs shall exchange licensing and en-
forcement information with each other which is nec-
essary to facilitate enforcement efforts and effective
license decisions.
(4) PENALTIES
FOR
DISCLOSURE
OF
CON-
FIDENTIAL INFORMATION.—Any officer or employee
of the United States, or any department or agency
153
thereof, who publishes, divulges, discloses, or makes
known in any manner or to any extent not author-
ized by law any confidential information that—
(A) he or she obtains in the course of his
or her employment or official duties or by rea-
son of any examination or investigation made
by, or report or record made to or filed with,
such department or agency, or officer or em-
ployee thereof, and
(B) is exempt from disclosure under this
subsection,
shall be fined not more than $10,000, or imprisoned
not more than one year, or both, shall be removed
from office or employment, and shall be subject to
a civil penalty of not more than $1,000 imposed by
the Secretary under section 110(c).
(h) AUTHORITY FOR SEMINAR AND PUBLICATIONS
FUND.—The Secretary is authorized to cooperate with
public agencies, other governments, international organi-
zations, private individuals, private associations, and other
groups in connection with seminars, publications, and re-
lated activities to carry out export activities, including
educating the public or government officials on the appli-
cation of this title and the regulations issued under this
title. The Secretary is further authorized to accept con-
154
tributions of funds, property, or services in connection
with such activities to recover the cost of such programs
and activities. Contributions may include payments for
materials or services provided as part of such activities.
The contributions collected may be retained for use in cov-
ering the costs of such activities, and for providing infor-
mation to the public with respect to this title and other
export control programs of the United States and other
governments.
(i) SUPPORT OF OTHER COUNTRIES’ EXPORT CON-
TROL PROGRAM.—The Secretary is authorized to partici-
pate in and provide training to officials of other countries
on the principles and procedures for the implementation
of effective export controls and may participate in any
such training provided by other departments and agencies
of the United States.
(j) 
INCORPORATED
COMMODITIES
AND
TECH-
NOLOGY.—
(1) COMMODITIES
CONTAINING
CONTROLLED
PARTS AND COMPONENTS.—Controls may not be im-
posed under this title or any other provision of law
for a commodity solely because the commodity con-
tains parts or components subject to export controls
under this title if such parts or components—
155
(A) are essential to the functioning of the
commodity,
(B) are customarily included in sales of the
commodity in countries other than controlled
countries, and
(C) comprise 25 percent or less of the total
value of the commodity,
unless the commodity itself, if exported, would by
virtue of the functional characteristics of the com-
modity as a whole make a significant contribution to
the military or proliferation potential of a controlled
country or end user which would prove detrimental
to the national security of the United States.
(2) REEXPORTS OF FOREIGN-MADE ITEMS IN-
CORPORATING U.S. ITEMS.—
(A) COMMODITIES.—(i) No authority or
permission may be required under section 105
or section 106 to reexport to a country other
than a terrorist country or an embargoed coun-
try a commodity that is produced in a country
other than the United States and incorporates
commodities that are subject to the jurisdiction
of the United States, if the value of the con-
trolled United States content of the commodity
156
produced in such other country is 25 percent or
less of the total value of the commodity.
(ii) No authority or permission may be re-
quired under section 105 or section 106 to reex-
port to a terrorist country or to an embargoed
country a commodity that is produced in a
country other than the United States and incor-
porates commodities that are subject to the ju-
risdiction of the United States, if the value of
the controlled United States content of the
commodity produced in such other country is
10 percent or less of the total value of the com-
modity.
(B) TECHNOLOGY.—(i) No authority or
permission may be required under section 105
or section 106 to reexport to a country other
than a terrorist country or an embargoed coun-
try technology that is produced in a country
other than the United States and is commingled
with or drawn from technology that is produced
in the United States, if the value of the con-
trolled United States content of the technology
produced in such other country is 25 percent or
less of the total value of the technology.