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suppliers effectively has placed or will place
the United States exporter at a near-term
commercial disadvantage vis-a-vis its com-
petitors abroad.
(ii) Changes to the domestic control
lists of the United States and foreign gov-
ernments result in similar items being con-
trolled differently thus resulting in a com-
petitive disadvantage.
(3) PROVISIONS FOR RELIEF.—Consistent with
multilateral arrangements, the Secretary, in con-
sultation with appropriate departments and agen-
cies, shall make determinations of facts under para-
graph (2) and, subject to paragraph 4, provide the
following relief to firms that meet the criteria in
paragraph (2):
(A) Change the control status of all or
some of the items in question so as to eliminate
any significant competitive disadvantage.
(B) Selectively approve the sale of con-
trolled goods so as to eliminate any significant
competitive disadvantage.
(C) Seek multilateral support to eliminate
the source of foreign availability or to enhance
a control to make it effective. If this relief is
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chosen and if such efforts fail to achieve multi-
lateral support to eliminate the source of for-
eign availability or to make the control effec-
tive, then not later than 330 days from the date
of the Secretary’s initiation of an assessment,
the Secretary shall provide other relief pursuant
to (A) or (B) above or conclude pursuant to
paragraph (4) that the granting of such relief
would create a significant risk to United States
nonproliferation, foreign policy or national secu-
rity interests. Provided, however, if the Sec-
retary of State, in consultation with appropriate
departments and agencies, finds that substan-
tial progress is being made to achieve multilat-
eral support to eliminate the source of foreign
availability or to make the control effective,
then the Secretary shall provide other relief
pursuant to (A) or (B) above or conclude pur-
suant to paragraph (4) that the granting of
such relief would create a significant risk to
United States nonproliferation, foreign policy or
national security interests, and shall do so with-
in an additional 180 days.
Except as provided in paragraph (5), a determina-
tion that a petitioner qualifies for relief under para-
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graph (2) above shall not compel the United States
to decontrol an item that remains subject to control
by a multilateral regime in which the United States
is a member or adherent.
(4) EXCEPTIONS FROM RELIEF.—The Secretary
shall provide relief to a petitioner who qualifies for
relief under paragraph (2) unless the Secretary con-
cludes that the granting of such relief would create
a significant risk to United States nonproliferation,
foreign policy, or national security interests. In the
event the Secretary determines to grant such relief,
he or she may do so unless the President determines
that such relief would create a significant risk to the
foreign policy, nonproliferation, or national security
interests of the United States.
(5) RELIEF
FROM
TRADITIONAL
EAST
WEST
COCOM
CONTROLS.—Relief under paragraph (2)
shall compel either the elimination of the foreign
availability or decontrol as provided in this para-
graph for an item controlled by the United States
based solely on its undertakings in the Coordinating
Committee prior to October of 1993 so long as the
Coordinating Committee shall continue in existence.
For such an item, the Secretary may not, after the
determination is made under paragraph (2), require
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a validated license for the export of such items dur-
ing the period that such determination remains in
effect, unless the President determines that the ab-
sence of export controls under this section on the
items would prove detrimental to the national secu-
rity of the United States.
(6) PROCEDURES.—In any case in which the
President or the Secretary determines that export
controls under this section must be maintained not-
withstanding the existence of facts that constitute a
basis for granting relief, the Secretary shall publish
that determination, together with a concise state-
ment of its basis and the estimated economic impact
of the decision.
(A) NOTICE OF ASSESSMENTS.—Whenever
the Secretary undertakes an assessment under
paragraph (2), the Secretary shall publish no-
tice of initiation of such assessment in the Fed-
eral Register.
(B) PROCEDURES
FOR
MAKING
DETER-
MINATIONS.—During the conduct of an assess-
ment under this subsection, the Secretary shall
consult with other appropriate departments and
agencies concerning the conduct of the assess-
ment. The Secretary shall make a determina-
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tion as to whether relief is required under para-
graph (2) within 120 days of the date of the
Secretary’s initiation of an assessment and shall
so notify the applicant. If the Secretary has de-
termined that relief is appropriate, the Sec-
retary shall, upon making such a determination,
submit the determination for review to appro-
priate departments and agencies for consulta-
tions regarding the findings and selected relief.
The Secretary’s determination as to eligibility
for relief and the nature of the relief to be
granted does not require the concurrence or ap-
proval of any official, department, or agency to
which such a determination is submitted. Not
later than 150 days from the date of the Sec-
retary’s initiation of an assessment, the Sec-
retary shall respond in writing to the petitioner
and submit for publication in the Federal Reg-
ister, that—
(i) relief is required and—
(I) the requirement of a validated
license has been removed;
(II) the control status of all or
some of the items in question has
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been changed so as to eliminate any
significant competitive disadvantage;
(III) the sale of controlled items
have been approved so as to eliminate
any significant competitive disadvan-
tage;
(IV) pursuant to paragraph (5),
export controls under this section
must be maintained notwithstanding
the finding under paragraph (2) and
the applicable steps are being taken
under subparagraph (C) this para-
graph; or
(V) The United States rec-
ommendation to remove the validated
license requirement or change the con-
trol status will be submitted to a rel-
evant multilateral regime for consider-
ation for a period of not more than
180 days beginning on the date of the
publication; or
(ii) a right to relief under paragraph
(2) does not exist.
In any case in which the submission for publi-
cation is not made within 150 days of the date
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of the Secretary’s initiation of an assessment,
the Secretary may not thereafter require a li-
cense for the export of items that are the sub-
ject of the allegation under paragraph (2). In
the case of a determination made under sub-
section (k)(6)(B)(i)(V) to refer a proposed relief
to the relevant multilateral regime, no license
for such export may be required after 330 days
from the date of the Secretary’s initiation of an
assessment unless the Secretary shall make a
finding under paragraph (4) or grant other re-
lief under paragraph (3).
(C) NEGOTIATIONS
TO
ELIMINATE
FOR-
EIGN AVAILABILITY.—
(i) In any case in which export con-
trols are maintained under this section
pursuant to paragraph (4), the Secretary
of State shall actively pursue negotiations
with the governments of the appropriate
foreign countries for the purpose of elimi-
nating such foreign availability or competi-
tive disadvantage. No later than the com-
mencement of such negotiations, the Sec-
retary of State shall notify in writing the
Committee on Banking, Housing, and
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Urban Affairs of the Senate and the Com-
mittee on Foreign Affairs of the House of
Representatives that he has begun such ne-
gotiations and why he believes it is impor-
tant that export controls on the items in-
volved be maintained to avoid a significant
risk to the foreign policy, nonproliferation,
or national security interests of the United
States.
(ii) Whenever the Secretary of State
has reason to believe that items subject to
export controls by the United States may
become available from other countries to
target countries and that such availability
can be prevented or eliminated by means
of negotiations with such other countries,
the Secretary of State shall promptly initi-
ate negotiations with the governments of
such other countries to prevent such for-
eign availability.
(7) 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
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of intelligence sources and methods, furnish informa-
tion to the Commerce Department concerning for-
eign availability of items subject to export controls
under this section. Consistent with the protection of
intelligence sources and methods and classification
restrictions, each such department or agency shall
allow the Commerce Department access to such in-
formation from a laboratory or other facility within
such department or agency.
(8) AVAILABILITY DEFINED.—For the purposes
of this subsection, the term ‘‘available in fact to tar-
get countries’’ includes production or availability of
any item from any country—
(A) where the item is not restricted for ex-
port to any target country; or
(B) where the export restrictions are deter-
mined by the Secretary to be ineffective.
For purposes of subparagraph (B), the mere inclu-
sion of items on a list of items subject to multilat-
eral export controls shall not alone constitute credi-
ble evidence that a government of a country provides
an effective means of controlling the export of such
items to target countries.
(9) CONGRESSIONAL
NOTIFICATION
AND
RE-
PORTING REQUIREMENTS.—The Secretary shall each
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year notify the Committee on Foreign Relations of
the House of Representatives and the Committee on
Banking, Housing, and Urban Affairs of the Senate
of all petitions for relief and the status of all such
petitions.
(l) UNILATERAL CONTROLS PROHIBITED.—
(1) Any export controls imposed unilaterally by
the United States for purposes adopted by the group
known as the Coordinating Committee shall expire
six months after the date of enactment of this para-
graph, or six months after the export control is im-
posed, whichever date is later, except that—
(A) any such export controls on those
items for which a determination of the Sec-
retary that there is no foreign availability has
been made under this section before the end of
the applicable six-month period and is in effect
may be renewed for periods of not more than
six months each; and
(B) any such export controls on those
items with respect to which the President, by
the end of the applicable six-month period, is
actively pursuing negotiations with other coun-
tries to achieve multilateral export controls on
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those items may be renewed for two periods of
not more than six months each.
(2) Export controls on items described in sub-
paragraph (A) or (B) of paragraph (1) above may
be renewed only if, before each renewal, the Sec-
retary submits to the Congress a report setting forth
all the controls being renewed and stating the spe-
cific reasons for such renewal.
(m) INTERNATIONAL OBLIGATIONS.—Notwithstand-
ing other provisions of this Act containing limitations on
authority to control imports and exports, pursuant to this
paragraph and in order to fulfill obligations of the United
States pursuant to resolutions of the United Nations, trea-
ties, or other international agreements to which the
United States is a party, the Secretary, in consultation
with appropriate departments and agencies, may impose
controls on exports and imports to and from a target coun-
try or region. The Secretary may regulate domestic and
foreign conduct consistent with the policies of such United
Nations resolutions, treaties, and international agree-
ments. Such authority shall include, but not be limited to,
the authority to prohibit activity such as financing, con-
tracting, servicing or employment, to deny access to items
in the United States and abroad, to conduct audits of
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records and inspections of facilities, to compel reports, and
to curtail travel.
(n) INFORMATION SHARING.—The Secretary and ap-
propriate officials of the intelligence community, as deter-
mined by the Director of Central Intelligence, and other
appropriate Government agencies shall establish a proce-
dure for information sharing.
(o) DENIED PARTIES, SANCTIONED PARTIES, SPE-
CIALLY DESIGNATED NATIONALS, AND OTHER PARTIES
PRESENTING UNACCEPTABLE RISKS OF DIVERSION.—
(1) DENIED
PARTIES, SANCTIONED
PARTIES,
SPECIALLY
DESIGNATED
NATIONALS.—The Sec-
retary shall publish parties denied export privileges
under this Act, parties sanctioned for prohibited pro-
liferation activity under this Act or other statutes,
and specially designated nationals named under the
International Emergency Economic Powers Act, as
amended, (50 U.S.C. 1701, et seq. (1988)).
(2) OTHER
PARTIES.—The Secretary shall
maintain a list of parties for whom licenses will be
presumptively denied.
(p) FREEDOM OF INFORMATION ACT EXEMPTION.—
The identity of parties maintained or disclosed pursuant
to subsection (o)(2) is not subject to disclosure under sec-
tion 552 of title 5, United States Code.
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SEC. 6. SHORT SUPPLY CONTROLS.
(a) AUTHORITY.—
(1) In order to carry out the policy set forth in
section 3(2)(D) of this Act, the President may pro-
hibit or curtail the export of any items 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 3(2)(D) of this Act, the Presi-
dent 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 for
United States items and treats the United States eq-
uitably in times of short supply.
(2) Upon imposing quantitative restrictions on
exports of any items to carry out the policy set forth
in section 3(2)(D) of this Act, the Secretary shall in-
clude in a notice published in the Federal Register
regarding such restrictions an invitation to all inter-
ested parties to submit written comments within 15
days from the date of publication on the impact of
such restrictions and the method of licensing used to
implement them.
(3) Notwithstanding subsection 4(h) of this
Act, in imposing export controls under this section,
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the President’s authority shall include, but not be
limited to, the imposition of export license fees.
(b) MONITORING.—
(1) In order to carry out the policy set forth in
section 3(2)(D) of this Act, the Secretary shall mon-
itor exports, and contracts for exports, of any good
(other than a commodity which is subject to the re-
porting requirements of section 812 of the Agricul-
tural Act of 1970 (7 U.S.C. 612c–3)) when the vol-
ume of such exports in relation to domestic supply
contributes, or may contribute, to an increase in do-
mestic prices or a domestic shortage, and such price
increase or shortage has, or may have, a serious ad-
verse impact on the economy or any sector thereof.
Any such monitoring shall commence at a time ade-
quate to assure that the monitoring will result in a
data base sufficient to enable policies to be devel-
oped, in accordance with section 3(2)(D) of this Act,
to mitigate a short supply situation or serious infla-
tionary 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 paragraph (2) of
this subsection.
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(2) The results of such monitoring shall, to the
extent practicable, be aggregated and included in
weekly reports setting forth, as 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.
(c) DOMESTICALLY-PRODUCED CRUDE OIL.—
(1) Notwithstanding any other provision of this
Act and notwithstanding subsection (u) of section 28
of the Mineral Leasing Act of 1920 (30 U.S.C. 185),
no domestically-produced crude oil transported by
pipeline over right-of-way granted pursuant to sec-
tion 203 of the TransAlaska Pipeline Authorization
Act (43 U.S.C. 1652) (except any such crude oil
which: (A) is exported to an adjacent foreign coun-
try to be refined and consumed therein in exchange
for the same quantity of crude oil being exported
from that country to the United States, which ex-
change must result, 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) of this
subsection; (B) is temporarily exported for conven-
HR 3937 IH
ience or increased efficiency of transportation across
parts of an adjacent foreign country and reenters
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 addi-
tion to exports under subparagraphs (2)(A) and
(2)(B), except that any ocean transportation of such
oil shall be by vessels documented under section
12106 of title 46, United States Code) may be ex-
ported from the United States, or any of its terri-
tories and possessions, subject to paragraph (2) of
this subsection.
(2) Crude oil subject to the prohibition con-
tained 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 changes, result
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in (I) acquisition costs to the refiners
which purchase the imported crude oil
being lower than the acquisition costs such
refiners would have to pay for the domesti-
cally-produced oil in the absence of such
an export or exchange, and (II) not less
than 75 percent of such savings in costs
being reflected in wholesale and retail
prices of products refined from such im-
ported 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-
sion of this Act; and
(B) the President includes such findings in
his or her recommendation to the Congress and
the Congress, within 60 days after receiving
that recommendation, agrees to a joint resolu-
tion which approves such exports on the basis
of those findings, and which is thereafter en-
acted into law.
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(3) Notwithstanding any other provision of this
section or any other provision of law, including sub-
section (u) of section 28 of the Mineral Leasing Act
of 1920 (30 U.S.C. 185(u)), the President may ex-
port oil to any country pursuant to a bilateral inter-
national oil supply agreement entered into by the
United States with such nation before June 25,
1979, or to any country pursuant to the Inter-
national Emergency Oil Sharing Plan of the Inter-
national Energy Agency.
(d) AGRICULTURAL COMMODITIES.—
(1) The Authority conferred by this section
shall not be exercised for any agricultural commod-
ity, 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 for any such commodity
during any period for which the supply of such com-
modity is determined by the Secretary of Agriculture
to be in excess of the requirements of the domestic
economy except to the extent the President deter-
mines that such exercise of authority is required to
carry out the policies set forth in subparagraph (B)
or (C) of paragraph (2) of section 3 of this Act. The
Secretary of Agriculture shall, by exercising the au-
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thority which the Secretary of Agriculture has under
other applicable provisions of law, collect data on ex-
port sales of animal hides and skins.
(2) Upon approval of the Secretary, in consulta-
tion with the Secretary of Agriculture, agricultural
commodities purchased by or for use in a foreign
country may remain in the United States for export
at a later date free from any quantitative limitations
on export which may be imposed to carry out the
policy set forth in section 3(2)(D) of this Act subse-
quent 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 com-
modities will eventually be exported, (B) that neither
the sale nor export thereof will result in an excessive
drain of scarce materials and have a serious domes-
tic 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 com-
modities for later use, not including resale to or use
by another country. The Secretary may issue such
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regulations as may be necessary to implement this
paragraph.
(3)(A) If the President imposes export controls
on any agricultural commodity in order to carry out
the policy set forth in paragraph (2)(B), (2)(C),
2(D), or (12) of section 3 of this Act, 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 periods of time,
which may not exceed 1 year, that the controls are
proposed to be in effect. If the Congress, within 60
days after the date of its receipt of the report,
adopts a joint resolution pursuant to paragraph (4)
approving the imposition of the export controls, then
such controls 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 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 ef-
fective 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 Act if
the controls, when imposed, were approved by
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the Congress under subparagraph (A) and
paragraph (4); or
(ii) which are imposed on exports to a
country as part of the prohibition or curtail-
ment of all exports to that country.
(4)(A) For purposes of this paragraph, the
term ‘‘joint resolution’’ means only a joint resolution
the matter after the resolving clause of which is as
follows: ‘‘That pursuant to section 6(d)(3) of the
Export Administration Act of 1979, the President
may impose export control as specified in the report
submitted to the Congress on 
.’’, 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 on 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 himself 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 intro-
duced (by request) in the Senate by the majority
leader of the Senate, for himself and the minority
leader of the Senate, or by Members of the Senate
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designated by the majority leader and minority lead-
er of the Senate. If either 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 preceding sentence, on the first day
thereafter on which that House is in session.
(C) All joint resolutions introduced in the
House of Representatives shall be referred to the ap-
propriate committee and all joint resolutions intro-
duced in the Senate shall be referred to the Commit-
tee on Banking, Housing, and Urban Affairs.
(D) 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 on the same matter.
(E) A joint resolution under this paragraph
shall be considered in the Senate in accordance with
the provisions of section 601(b)(4) of the Inter-
national Security Assistance and Arms Export Con-
trol Act of 1976 (22 U.S.C. 2151 et seq., Public
Law 94–329, June 30, 1976). For the purpose of
expediting the consideration and passage of joint
resolutions reported or discharged pursuant to the
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provisions of this paragraph, it shall be in order for
the Committee on Rules of the House of Representa-
tives to present for consideration a resolution of the
House of Representatives providing procedures for
the immediate consideration of a joint resolution
under this paragraph which may be similar, if appli-
cable, to the procedures set forth in section
601(b)(4) of the International Security Assistance
and Arms Export Control Act of 1976.
(F) 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 on 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.
(5) In the computation of the period of 60 days
referred to in paragraph (3) and the period of 30
days referred to in subparagraph (D) of paragraph
(4) 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
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or because of an adjournment of the Congress sine
die.
(e) BARTER AGREEMENTS.—
(1) The exportation pursuant to a barter agree-
ment of any items which may lawfully be exported
from the United States, for any items which may
lawfully be imported into the United States, may be
exempted, in accordance with paragraph (2) of this
subsection, from any quantitative limitation on ex-
ports (other than any reporting requirement) im-
posed to carry out the policy set forth in section
3(2)(D) of this Act.
(2) The Secretary shall grant an exemption
under paragraph (1) if the Secretary finds, after
consultation with the appropriate department or
agency of the United States, that—
(A) for the period during which the barter
agreement is to be performed—
(i) the average annual quantity of the
items to be exported pursuant to the bar-
ter agreement will not be required to sat-
isfy the average amount of such items esti-
mated to be required annually by the do-
mestic economy and will be surplus there-
to; or
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(ii) the average annual quantity of the
items to be imported will be less than the
average amount of such items estimated to
be required annually to supplement domes-
tic 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) For purposes of this subsection, the term
‘‘barter agreement’’ means any agreement which is
made for the exchange, without monetary consider-
ation, of any items produced in the United States
for any items produced outside of the United States.
(4) This subsection shall apply only to barter
agreements entered into after September 30, 1979.
(f) UNPROCESSED RED CEDAR.—No unprocessed
western red cedar logs (Thuja plicata) harvested from
State or Federal lands may be exported from the United
States.
(1) Unprocessed western red cedar logs shall
not be considered to be an agricultural commodity
for purposes of subsection (d) of this section.
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(2) As used in this subsection, the term ‘‘un-
processed western red cedar’’ means red cedar tim-
ber 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.
(3) The State of Alaska is exempt from the pro-
visions of this subsection (Public Law 96–126, 93
Stat. 954, 308 (1979)).
(g) EFFECT
OF CONTROLS
ON EXISTING CON-
TRACTS.—The export restrictions contained in subsection
(f) of this section and any export controls imposed under
this section shall not affect any contract to harvest un-
processed 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.
Any export controls imposed under this section on any ag-
ricultural commodity (including fats, oils, and animal
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hides and skins) or on any forest product or fishery prod-
uct, shall not affect any contract to export entered into
before the date on which such controls are imposed. For
purposes of this subsection, the term ‘‘contract to export’’
includes, but is not limited to, an export sales agreement
and an agreement to invest in an enterprise which involves
the export of goods or technology.
(h) OIL EXPORTS
FOR USE
BY UNITED STATES
MILITARY FACILITIES.—For purposes of subsection (c) of
this section, and for purposes of any export controls im-
posed under this Act, shipments of crude oil, refined petro-
leum products, or partially refined petroleum products
from the United States for use by the Department of De-
fense or United States-supported installations or facilities
shall not be considered to be exports.
SEC. 7. FOREIGN BOYCOTTS.
(a) PROHIBITIONS AND EXCEPTIONS.—
(1) For the purpose of implementing the poli-
cies set forth in subparagraph (A) or (B) of para-
graph (14) of section 3 of this Act, the President
shall issue regulations prohibiting any United States
person, with respect to his or her activities in the
interstate or foreign commerce of the United States,
from taking or knowingly agreeing to take any of
the following actions with the intent to comply with,
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further, 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 object of any form of boycott pursuant to United
States law or regulation:
(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-
nate against any United States person on the
basis of race, religion, sex, or national origin of
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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
United States person or of any owner, officer,
director, or employee of such person.
(D) Furnishing information about whether
any person has, has had, or proposes to have,
any business relationship (including a relation-
ship by way of sale, purchase, legal or commer-
cial representation, shipping or other transport,
insurance, investment, or supply) with or in the
boycotted country, with any business concern
organized under the laws of the boycotted coun-
try, with any national or resident of the boy-
cotted country, or with any other person known
or believed to be restricted from having any
business relationship with or in the boycotted
country. Nothing in this paragraph shall pro-
hibit the furnishing of normal business informa-
tion in a commercial context as defined by the
Secretary.
(E) Furnishing information about whether
any person is a member of, has made contribu-
tion to, or is otherwise associated with or in-
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volved in the activities of any charitable or fra-
ternal organization which supports the boy-
cotted country.
(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) Regulations issued pursuant to paragraph
(1) shall provide exceptions for—
(A) complying or agreeing to comply with
requirements (i) prohibiting the import of items
or services from the boycotted country or items
produced or services provided by any business
concern organized under the laws of the boy-
cotted country or by nationals or residents of
the boycotted country, or (ii) prohibiting the
shipment of items to the boycotted country on
a carrier of the boycotted country, or by a route
other than that prescribed by the boycotting
country or the recipient of the shipment;
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(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 items
which, in the normal course of business, are
identifiable by source when imported into the
boycotting country;
(D) complying or agreeing to comply with
export requirements of the boycotting country
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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 his or her activities ex-
clusively therein, and such regulations may con-
tain exceptions for such resident complying with
the laws or regulations of the foreign country
governing 
imports 
into 
such 
country 
of
trademarked, trade named, or similarly specifi-
cally identifiable products, or components of
products for his or her own use, including the
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performance of contractual services within that
country, as may be defined by such regulations.
(3) Regulations issued pursuant to paragraphs
(2)(C) and (2)(F) shall not provide exceptions from
paragraphs (1)(B) and (1)(C).
(4) Nothing in this subsection may be con-
strued to supersede or limit the operation of the
antitrust or civil rights laws of the United States.
(5) This section shall apply to any transaction
or activity undertaken, by or through a United
States person or any other person, with intent to
evade the provisions of this section as implemented
by the regulations issued pursuant to this sub-
section, and such regulations shall expressly provide
that the exceptions set forth in paragraph (2) shall
not permit activities or agreements (expressed or im-
plied by a course of conduct, including a pattern of
responses) otherwise prohibited, which are not with-
in the intent of such exceptions.
(b) REGULATIONS.—
(1) In addition to the regulations issued pursu-
ant to subsection (a) of this section, regulations is-
sued under this subsection of the Act shall imple-
ment the policies set forth in section 3(14).
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(2) Such regulations shall require that any
United States person receiving a request for the fur-
nishing of information, the entering into or imple-
menting of agreements, or the taking of any other
action referred to in section 3(14) shall report that
fact to the Secretary, together with such other infor-
mation concerning such request as the Secretary
may require for such action as the Secretary consid-
ers appropriate for carrying out the policies of that
section. Such person shall also report to the Sec-
retary whether such person intends to comply and
whether such person has complied with such request.
Any report filed pursuant to this paragraph shall be
made available promptly for public inspection and
copying, except that information regarding the quan-
tity, description, and value of any items to which
such report relates may be kept confidential if the
Secretary determines that disclosure thereof would
place the United States person involved at a com-
petitive disadvantage. The Secretary shall periodi-
cally transmit summaries of the information con-
tained in such reports to the Secretary of State for
such action as the Secretary of State, in consultation
with the Secretary, considers appropriate for carry-
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ing out the policies set forth in section 3(14) of this
Act.
(c) PREEMPTION.—The provisions of this section and
the regulations issued pursuant thereto shall preempt any
law, rule, or regulation of any of the several States or the
District of Columbia, or any of the territories or posses-
sions of the United States, or of any governmental subdivi-
sion thereof, which law, rule, or regulation pertains to par-
ticipation in, compliance with, implementation of, or the
furnishing of information regarding restrictive trade prac-
tices or boycotts fostered or imposed by foreign countries
against other countries.
SEC. 8. PROCEDURES FOR PROCESSING EXPORT LICENSE
APPLICATIONS; OTHER INQUIRIES.
(a) 
PRIMARY
RESPONSIBILITY
OF
THE
SEC-
RETARY.—
(1) All export license applications required
under this Act shall be submitted by the applicant
to the Secretary. All determinations on any such ap-
plications shall be made by the Secretary, subject to
the procedures provided in this section.
(2) To the extent necessary, the Secretary shall
seek information and recommendations from the
Government departments and agencies with factors
having an important bearing on exports adminis-
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tered under this Act. Such departments and agencies
shall cooperate fully and promptly in rendering in-
formation and recommendations.
(3) In regulations that implements this section,
the Secretary shall describe the procedures required
by this section, the responsibilities of the Secretary
and of other departments and agencies in reviewing
applications, the rights of the applicant, and the ex-
tent of any multilateral review of a given license
application.
(4) In calculating the processing times set forth
in this section, the Secretary shall use calendar days;
provided 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.
(5) In reviewing applications for validated ex-
port licenses, the Secretary may in each case con-
sider the reliability of the parties to the proposed ex-
port. In making such an evaluation, the Secretary
may consider all sources of information, including
intelligence information. However, the consideration
of intelligence information in connection with the
evaluation of the reliability of parties shall not au-
thorize the direct or indirect disclosure of classified
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information or sources and methods of gathering
classified information.
(b) INITIAL SCREENING.—
(1) Upon receipt of an export license applica-
tion, the Secretary shall include receipt and status
information regarding the application in the records
of the Department.
(2) Within 9 days of receipt of any license ap-
plication, the Secretary shall—
(A) contact the applicant if the application
is improperly completed or if additional infor-
mation is required, and hold the application for
a reasonable time while the applicant provides
the necessary corrections or information. Such
time shall not be counted in calculating the
time periods prescribed in this section;
(B) refer the application and all necessary
recommendations and analyses by the Secretary
to all other agencies, when such referral is re-
quested, and forward to the agencies any rel-
evant information submitted by the applicant
that could not be reduced to electronic form;
and
(C) assure the stated classification on the
application is correct; return the application if
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a validated license is not required; and, if refer-
ral to other agencies is not requested, grant the
application or notify the applicant of the Sec-
retary’s intent to deny the application.
(c) ACTION BY OTHER DEPARTMENTS AND AGEN-
CIES.—
(1) At the direction of the President, the Sec-
retary shall refer license applications to appropriate
departments and agencies to make recommendations
and provide information to the Secretary.
(2) Reviewing agencies shall organize their re-
sources and units to plan for the prompt and expedi-
tious internal dissemination of export license appli-
cations, if necessary, so as to avoid delays in re-
sponding to the Secretary’s request for information
and recommendations.
(3) Each referral agency or department shall
specify to the Secretary any information that is not
in the application that would be required to make a
determination, and the Secretary shall promptly re-
quest such information from the applicant. The time
that may elapse between the date the information is
requested from the applicant and the date the infor-
mation is received by the Secretary shall not be
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counted in calculating the time periods prescribed in
this section.
(4) Within thirty days of receipt of a referral,
the agency or department shall provide the Secretary
with a recommendation either to approve the license
or to deny the license. As appropriate, such rec-
ommendation shall be with the benefit of consulta-
tion and discussions in interagency groups estab-
lished to provide expertise and coordinate inter-
agency consultation. A recommendation that the
Secretary deny a validated license shall include a
statement of reasons that are consistent with the
provisions of this Act, and shall cite both the statu-
tory and the regulatory basis for the recommenda-
tion to deny. A department or agency that fails to
provide a recommendation within thirty days with a
statement of reasons and the statutory and regu-
latory basis shall be deemed to have no objection to
the decision of the Secretary.
(5) An interagency committee shall be estab-
lished by and the chairman selected by the Secretary
to review initially all license applications on which
the reviewing agencies are not in agreement. The
chairman of such committee shall consider the rec-
ommendations of the reviewing agencies and inform
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them of his or her decision. Appeals from such deci-
sions may be made in writing by an official of such
department or agency who is appointed by the Presi-
dent by and with the advice and consent of the Sen-
ate, or an officer properly acting in such capacity,
consistent with procedures established by the Presi-
dent in accordance with subsection (d).
(6) Upon receiving all comments from other de-
partments and agencies regarding an application
upon which there is no disagreement, or forty-nine
days following receipt of a license application upon
which there has been disagreement, whichever comes
first, the Secretary shall either—
(A) approve the application and issue the
license; or
(B) notify the applicant of the intent to
deny the license; or
(C) notify the applicant the application has
been referred to a process established by the
President to resolve matters in dispute.
(d) INTERAGENCY
RESOLUTION.—The President
may establish a process for the review and determination
of export license applications as to which a reviewing agen-
cy has objected pursuant to subsection (c). Any such proc-
ess shall (1) be chaired by the Secretary or his designee;
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(2) insure that license applications are resolved or referred
to the President no later than 90 days from the date of
filing of the license application; and (3) provide that a de-
partment or agency that fails to take a timely position
shall be deemed to have no objection to the pending
decision.
(e) ACTIONS BY THE SECRETARY.—
(1) When no referral to other departments or
agencies is required, the Secretary shall issue a li-
cense or notify the applicant of the intent to deny
within nine days of receipt of the application.
(2) In cases where the Secretary has deter-
mined that an application should be denied, the ap-
plicant shall be informed in writing of—
(A) the determination to deny;
(B) the statutory and regulatory basis for
the proposed denial;
(C) what, if any, modifications in or re-
strictions on the items for which the license was
sought would allow such export to be compat-
ible with export controls imposed under this
Act, and which officer or employee of the De-
partment of Commerce would be in a position
to discuss modifications or restrictions with the
applicant;
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(D) to the extent consistent with the na-
tional security and foreign policy of the United
States, the specific considerations that led to
the determination to deny the application; and
(E) the availability of appeal procedures.
The Secretary shall allow the applicant 20 days to
respond to the determination before the license ap-
plication is denied.
(3) The Secretary and the applicant may, at
any time, agree mutually to suspend the time peri-
ods prescribed by this section in order to negotiate
modifications to the application and obtain agree-
ment to such modifications from the foreign parties
to the transaction.
(f) MULTILATERAL CONTROLS.—When an applica-
tion recommended for approval must be submitted to a
multilateral review process, pursuant to a multilateral re-
gime, formal or informal, to which the United States is
a party, the application shall be referred to the multilat-
eral regime within 5 days of the decision to approve. Any
such application shall be considered in accordance with the
review procedures established by the relevant multilateral
export control regime, and the license shall be issued or
a notice of intent to deny issued within 5 days of receipt
of a decision by the multilateral regime.
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(g) EXCEPTIONS FROM REQUIRED TIME PERIODS.—
All license applications shall be resolved or referred to the
President no later than 90 days from the date of filing
of the license application. The following actions related to
processing an application shall not be counted in calculat-
ing the time periods prescribed in this section:
(1) AGREEMENT OF THE APPLICANT.—Delays
in processing required by unusually complex tech-
nical review or by need to complete a high-level pol-
icy review, when the Secretary and the applicant
mutually agree to the delay.
(2) PRELICENSE
CHECKS.—Prelicense checks
through government channels that may be required
to establish the identity and reliability of the recipi-
ent of items controlled under this Act, provided—
(A) the need for such prelicense check is
established by the Secretary, or by another de-
partment or agency, if the request for
prelicense check is made by such department or
agency;
(B) the request for such prelicense check is
sent by the Secretary within 5 days of the de-
termination that the prelicense check is re-
quired; and
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(C) the analysis of the response to the re-
quest for prelicense check is completed by the
Secretary within 5 days.
(3) REQUESTS FOR GOVERNMENT-TO-GOVERN-
MENT
ASSURANCES.—Requests for government-to-
government assurances of suitable end use of items
approved for export, when failure to obtain such as-
surances would result in rejection of the application,
provided that the request for such assurances is sent
to the Secretary of State within five days of the de-
termination that the assurances are required, pro-
vided the Secretary of State initiates the request of
the relevant government within 10 days thereafter,
and provided the license is issued within 5 days of
receipt by the Secretary of the requested assurances.
Whenever such prelicense checks and assurances are not
requested within the time periods set forth above, they
must be accomplished within the time periods established
by this section.
(4) MULTILATERAL REVIEW.—Multilateral re-
view of a license application as provided for in sub-
section (f) so long as such multilateral review is re-
quired by the relevant multilateral regime.
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(5) 
CONGRESSIONAL
NOTIFICATION.—Such
time as required for mandatory congressional notifi-
cations under this Act.
(h) APPEALS.—
(1) The Secretary shall establish appropriate
procedures for any applicant to appeal to the Sec-
retary the denial of an export license application or
other administrative action.
(2) In any case in which any action prescribed
in this section is not taken on the license application
within the time periods established by this section
(except in the case of a time period extended under
subsection (g)(4) of which the applicant is notified),
the applicant may file a petition with the Secretary
requesting compliance with the requirements of this
section. When such petition is filed, the Secretary
shall take immediate steps to correct the situation
giving rise to the petition and shall immediately no-
tify the applicant of such steps.
(3) If, within 20 days after a petition is filed
under paragraph (2), the processing of the applicant
has not been brought into conformity with the re-
quirements of this section, or the application has
been brought into conformity with such require-
ments but the Secretary has not so notified the ap-
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plicant, the applicant may bring an action in an ap-
propriate United States district court for an order
requiring compliance with the temporal requirements
of this section. The United States district courts
shall have jurisdiction to provide such relief, as
appropriate.
(i) CLASSIFICATION REQUESTS AND OTHER INQUIR-
IES.—
(1) In any case in which the Secretary receives
a written request asking for the proper classification
of an item on the Control List, the Secretary shall,
within 14 days after receipt of the request, inform
the person making the request of the proper classi-
fication.
(2) In any case in which the Secretary receives
a written request for information about the applica-
bility of export license requirements under this Act
to a proposed export transaction or series of trans-
actions, the Secretary shall, within 30 days after the
receipt of the request, reply with that information to
the person making the request.
SEC. 9. VIOLATIONS.
(a) CRIMINAL PENALTIES.—
(1) VIOLATIONS BY AN INDIVIDUAL.—Except as
provided in paragraph (3) below, any individual who
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knowingly violates or conspires to or attempts to vio-
late any provision of this Act or any regulation, li-
cense, or order issued thereunder shall be fined not
more than five times the value of the exports in-
volved or $500,000 per violation, whichever is great-
er, or imprisoned not more than 10 years, or both.
(2) VIOLATIONS BY A PERSON OTHER THAN AN
INDIVIDUAL.—Except as provided in paragraph (3)
below, any person other than an individual who
knowingly violates or conspires to or attempts to vio-
late any provision of this Act or any regulation, li-
cense or order issued thereunder shall be fined not
more than 10 times the value of the exports involved
or $1,000,000 per violation, whichever is greater.
(3) ANTIBOYCOTT VIOLATIONS.—Any individual
who knowingly violates or conspires to or attempts
to violate any provision of section 7 of this Act con-
cerning foreign boycotts or any regulation or order
issued thereunder shall be fined not more than five
times the value of the exports involved or $250,000
per violation, whichever is greater, or imprisoned not
more than 10 years, or both. Any person other than
an individual who knowingly violates or conspires to
or attempts to violate any provision of section 7 of
this Act or any regulation or order issued there-
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under shall be fined not more than 5 times the value
of the exports involved or $500,000 per violation,
whichever is greater.
(b) FORFEITURE OF PROPERTY INTEREST AND PRO-
CEEDS.—
(1) Any person who is convicted under sub-
section (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 goods or tangible
items that were the subject of the violation;
(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) The procedures in any forfeiture under this
subsection, and the duties and authority of the
courts of the United States and the Attorney Gen-
eral with respect to any forfeiture action under this
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subsection or with respect to any property that may
be subject to forfeiture under this subsection, shall
be governed by the provisions of chapter 46 of title
18, United States Code.
(c) CIVIL
PENALTIES; ADMINISTRATIVE
SANC-
TIONS.—
(1) The Secretary may impose a civil penalty
not to exceed $250,000 for each violation of this Act
or any regulation, license or order issued under this
Act, either in addition to or in lieu of any other li-
ability or penalty which may be imposed, except that
the civil penalty for each such violation involving
section 7 of this Act concerning foreign boycotts
may not exceed $50,000.
(2) The Secretary may deny the export privi-
leges of any person, including suspending or revok-
ing the authority of any person to export or receive
any item subject to this Act, for any violation of the
provisions of this Act or any regulation, license or
order issued under this Act.
(d) PROCEDURES RELATING TO CIVIL PENALTIES
AND SANCTIONS.—
(1) Any administrative sanction imposed under
subsection (c) above may be imposed only after no-
tice and opportunity for an agency hearing on the
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record in accordance with sections 554 through 557
of title 5, United States Code. The imposition of any
such administrative sanction shall be subject to judi-
cial review in accordance with sections 701 through
706 of title 5, United States Code.
(2) Any charging letter or other document initi-
ating administrative proceedings for the imposition
of sanctions for violations of the regulations issued
pursuant to section 7(a) of this Act shall be made
available for public inspection and copying.
(e) PAYMENT OF CIVIL PENALTIES.—The payment
of any civil penalty imposed pursuant to subsection (c)
may be made a condition, for a period not exceeding one
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 addition, the payment of any civil penalty im-
posed under subsection (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.
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(f) REFUNDS.—Any amount paid in satisfaction of
any civil penalty imposed pursuant to subsection (c) shall
be covered into the Treasury as a miscellaneous receipt.
The head of the department or agency concerned may, in
his discretion, refund any such civil penalty imposed pur-
suant to subsection (c), within 2 years after payment, on
the ground of a material error of fact or law in the imposi-
tion 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.
(g) COLLECTION.—If any person fails to pay a civil
penalty imposed pursuant to subsection (c) of this Act,
the Secretary may ask the Attorney General to bring a
civil action in an appropriate district court to recover the
amount imposed (plus interest at currently prevailing
rates from the date of the final order). Any such action
must be commenced within 5 years after the order impos-
ing the civil penalty becomes final. In such an action, the
validity, amount, and appropriateness of such penalty
shall not be subject to review.
(h) PRIOR CONVICTIONS.—
(1) At the discretion of the Secretary, export
privileges under this Act may be denied for a period
of up to 10 years from the date of conviction to any
person convicted of a violation of this Act or its
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predecessor statute, the Export Administration Act
of 1979; the International Emergency Economic
Powers Act, title 50, United States Code, sections
1701–1706; sections 793, 794, 798, of title 18,
United States Code; section 4(b) of the Internal Se-
curity Act of 1950, title 50, United States Code, sec-
tion 783(b); section 16 of the Trading with the
Enemy Act, title 50, United States Code appendix,
section 16; section 38 of the Arms Export Control
Act, title 22, United States Code, section 2778; any
regulation, license, or order issued under any of the
above statutes; or section 371 or 1001 of title 18,
United States Code, if the conviction arises out of
an activity subject to 1 or more of the statutes enu-
merated above. The Secretary may also revoke any
export license under this Act in which such person
had an interest at the time of the conviction.
(2) The Secretary may exercise the authority
under paragraph (1) with respect to any person re-
lated, through affiliation, ownership, control, or posi-
tion of responsibility, to any person convicted of any
violation of a law set forth in paragraph (1), upon
a showing of such relationship with the convicted
person, after providing notice and opportunity for
hearing.
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(i) STATUTE OF LIMITATIONS.—Any case in which
a civil penalty or other administrative sanction (other than
a temporary denial order) is sought under section 9(c) of
this Act must be instituted within 5 years of the date from
the alleged violation, except that, in any case in which a
criminal indictment alleging a violation of this Act is re-
turned within the time limits prescribed by law for the
institution of such action, the statute of limitations for
bringing a proceeding to impose a civil penalty or other
administrative sanction under this Act shall, upon the re-
turn of the criminal indictment, be tolled against all per-
sons named as a defendant. The tolling of the statute of
limitations shall continue for a period of not more than
6 months from the date a conviction is entered or the in-
dictment is dismissed.
(j) IMPOSITION OF TEMPORARY DENIAL ORDERS.—
(1) In any case in which there is reasonable
cause to believe that a person is engaged in or is
about to engage in any act or practice which con-
stitutes or would constitute a violation of the Act, or
any regulation, order, or license issued under the
Act, or in any case in which a criminal indictment
has been returned against a person alleging a viola-
tion of the Act or any of the statutes listed in sec-
tion 9(h) of the Act, the Secretary may, without a
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hearing, issue an order temporarily denying that
person’s United States export privileges (hereinafter
in this subsection referred to as a ‘‘temporary 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 180-day periods.
(2) The person or persons subject to the issu-
ance or renewal of a temporary denial order may ap-
peal the issuance or renewal of the temporary denial
order, supported by briefs and other material, to an
administrative law judge who shall, within 15 work-
ing days after the appeal is filed, issue a decision af-
firming, modifying, or vacating the temporary denial
order. The temporary denial order shall be affirmed
if it is shown that there is reasonable cause to be-
lieve 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 the
Act, or any regulation, order, or license issued under
the Act, or if it is shown that a criminal indictment
has been returned against the person subject to the
order alleging a violation of the Act or any of the
statutes listed in section 9(h) of the Act. The deci-
sion of the administrative law judge shall be final
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unless, within 10 working days from 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-
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) An order of the Secretary affirming, in
whole or in part, the issuance or renewal of a tem-
porary denial order may, within 15 days after the
order is issued, be appealed by a person subject to
the order to the United States Court of Appeals for
the District of Columbia Circuit, which shall have
jurisdiction of the appeal. The court may review only
those issues necessary to determine whether the is-
suance of the temporary denial order was based on
reasonable cause to believe that the person subject
to the order was engaged in or was about to engage
in any act or practice which constitutes or would
constitute a violation of the Act, or any regulation,
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order or license issued under the Act, or if a crimi-
nal indictment has been returned against the person
subject to the order alleging a violation of the Act
or any of the statutes listed in section 9(h) of the
Act. The court shall vacate the Secretary’s order if
the court finds that the Secretary’s order is arbi-
trary, capricious, an abuse of discretion, or other-
wise not in accordance with law.
(k) VIOLATIONS DEFINED BY REGULATION.—Noth-
ing in this section shall limit the power of the Secretary
to define by regulation violations under this Act.
(l) OTHER AUTHORITIES.—Nothing in subsection
(c), (e), (f), (g), (h), or (i) limits—
(1) the availability of other administrative or
judicial remedies with respect to violations of this
Act, or any regulation, order, or license issued under
this Act;
(2) the authority to compromise and settle ad-
ministrative proceedings brought with respect to vio-
lations of this Act, or any regulation, order, or li-
cense issued under this Act; or
(3) the authority to compromise, remit, or miti-
gate seizures and forfeitures pursuant to section
1(b) of title VI of the Act of June 15, 1917, title
22, United States Code, section 401(b).
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SEC. 10. ENFORCEMENT.
(a) GENERAL AUTHORITY AND DESIGNATION.—
(1) The Secretary, in consultation with the Sec-
retary of the Treasury and the heads of other appro-
priate departments and agencies, shall be responsible
for providing policy guidance on the enforcement of
this Act.
(2) To the extent necessary or appropriate to
the enforcement of this Act or to the imposition of
any penalty, forfeiture, or liability arising under the
Export Administration Act of 1979, as amended, of-
ficers or employees of the Department of Commerce
designated by the Secretary and officers and employ-
ees of the United States Customs Service designated
by the Commissioner may exercise the enforcement
authorities described in paragraph (3). In carrying
out these enforcement authorities—
(A) the Commissioner of Customs, and em-
ployees of the United States Customs Service
designated by the Commissioner, may make in-
vestigations within or outside the United States
and at those ports of entry or exit from the
United States where officers of the United
States Customs Service are authorized by law
to carry out such enforcement responsibilities.
Subject to paragraph (3), the United States
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Customs Service is authorized, in the enforce-
ment of this Act, to search, detain (after
search), and seize goods or technology at those
ports of entry or exit from the United States
where officers of the Customs Service are au-
thorized by law to conduct such searches, deten-
tions, and seizures, and at those places outside
the United States where the Customs Service,
pursuant to agreements or other arrangements
with other countries, is authorized to perform
enforcement activities;
(B) the Secretary, and officers and em-
ployees of the Department of Commerce des-
ignated by the Secretary, may make investiga-
tions within the United States, and shall con-
duct, outside the United States, pre-license and
post-shipment verifications of items licensed for
export and investigations in the enforcement of
section 7 of this Act. The Secretary, and offi-
cers and employees of the Department of Com-
merce designated by the Secretary, are author-
ized to search, detain (after search), and seize
items at those places within the United States
other than those ports and borders specified in
paragraph (2)(A) above. The search, detention
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(after search), or seizure of items at those ports
and borders specified in paragraph (2)(A) may
only be conducted by officers and employees of
the Department of Commerce with the concur-
rence of the Commissioner of Customs or a per-
son designated by the Commissioner; and
(C) the Secretary and the Commissioner of
Customs may enter into agreements and ar-
rangements for the enforcement of this Act, in-
cluding foreign investigations and information
exchange.
(3) Any officer or employee designated in ac-
cordance with paragraph (2) may do the following in
carrying out the enforcement authority under this
Act, except that the authorities enumerated in sub-
paragraphs (F) and (G) below may be carried out
only by officers and employees of the United States
Customs Service designated by the Commissioner:
(A) Make investigations of, obtain informa-
tion from, make inspection of any books,
records, or reports, as well as any writings re-
quired to be kept by the Secretary, premises, or
property of, and take the sworn testimony of,
any person.
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(B) 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, after notice to any such person
and hearing, shall have jurisdiction to issue an
order requiring such person to appear and give
testimony or to appear and produce books,
records, and other writings, or both and any
failure to obey such order of the court may be
punished by such court as a contempt thereof.
(C) Execute any warrant or other process
issued by a court or officer of competent juris-
diction with respect to the enforcement of the
provisions of this Act.
(D) Make arrests without warrant for any
violation of this Act committed in his or her
presence or view, or if the officer or employee
has probable cause to believe that the person to
be arrested has committed, is committing, or is
about to commit such a violation.
(E) Carry firearms.
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(F) 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
Act.
(G) 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 Act.
(H) 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 Act.
(I) The authorities conferred by this sec-
tion are in addition to any authorities conferred
under other laws.
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(b) FORFEITURE.—All goods or tangible items law-
fully seized under subsection (a) of this section by des-
ignated officers or employees shall be forfeited 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 Act, 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 subparagraph by the Secretary or
such officers or employees of the Department of Com-
merce 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
dispose of seized property.
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(c) UNDERCOVER INVESTIGATIVE OPERATIONS.—
(1) With respect to any undercover investigative
operation conducted by the Office of Export En-
forcement of the Department of Commerce (herein-
after in this subsection referred to as ‘‘OEE’’) nec-
essary for the detection and prosecution of violations
of this Act—
(A) funds made available for export en-
forcement under this Act 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 ‘‘MIS-
CELLANEOUS’’ of the Act of March 3, 1877,
title 40, United States Code, section 34, sec-
tions 3732(a) and 3741 of the Revised Statutes
of the United States, title 41, United States
Code, sections 11(a) and 22, and subsections
(a) and (c) of section 304, and section 305, of
the Federal Property and Administrative Serv-
ices Act of 1949 and title 41, United States
Code, sections 254(a) and (c) and 255;
(B) funds made available for export en-
forcement under this Act may be used to estab-
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lish or to acquire proprietary corporations or
business entities as part of an OEE undercover
operation, and to operate such corporations or
business entities on a commercial basis, without
regard to section 9102 of title 31, United
States Code;
(C) funds made available for export en-
forcement under this Act and the proceeds from
OEE undercover operations may be deposited
in banks or other financial institutions without
regard to the provisions of section 648 of title
18, United States Code, and section 3302 of
title 31, United States Code; and
(D) the proceeds from OEE undercover
operations may be used to offset necessary and
reasonable 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 any
action authorized by clause (A), (B), (C), or
(D) is necessary for the conduct of the under-
cover operation.
(2) If a corporation or business entity estab-
lished or acquired as part of an OEE undercover op-
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eration with a net value of more than $50,000 is to
be liquidated, sold, or otherwise disposed 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 designee determines is practicable. The proceeds
of the liquidation, sale, or other disposition, after ob-
ligations incurred by the corporation or business en-
terprises are met, shall be deposited in the Treasury
of the United States as miscellaneous receipts.
(3) As soon as the proceeds from an undercover
investigative operation with respect to which an ac-
tion is authorized and carried out under this para-
graph 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 mis-
cellaneous receipts.
(4) AUDIT AND REPORT.—
(A) The Director of OEE shall conduct a
detailed financial audit of each undercover in-
vestigative operation which is closed and shall
submit the results of the audit in writing to the
Secretary. Not later than 180 days after an
OEE undercover operation is closed, the Sec-
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retary shall submit to the Congress a report on
the results of the audit.
(B) The Secretary shall submit a report
annually to the Congress, which report may be
included in the annual report under section 13,
specifying the following information:
(i) The number of OEE undercover
investigative operations pending as of the
end of the period for which such report is
submitted.
(ii) The number of OEE undercover
investigative operations commenced in the
1-year period preceding the period for
which such report is submitted.
(iii) The number of OEE undercover
investigative operations closed in the 1-
year period preceding the period for which
such report is submitted and, with respect
to each such closed undercover operation,
the results obtained and any civil claims
made with respect thereto.
(5) For purposes of subparagraph (4)—
(A) the term ‘‘closed’’ refers to the earliest
point in time at which all criminal proceedings
(other than appeals) are concluded, or covert
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activities are concluded, whichever occurs later;
and
(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 required by paragraph (B) of
subparagraph (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.
(d) REFERENCE TO ENFORCEMENT.—For purposes
of this section, a reference to the enforcement of this Act
or to a violation of this Act includes a reference to the
enforcement or a violation of any regulation, license, or
order issued under this Act.
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that seeks to prevent the proliferation of chemical
and biological weapons.
(3) BIOLOGICAL WEAPONS CONVENTION.—The
term ‘‘Biological Weapons Convention’’ refers to the
‘‘Convention on the Prohibition of the Development,
Production and Stockpiling of Bacteriological (Bio-
logical) and Toxin Weapons and on Their Destruc-
tion of 1972’’.
(4) CHEMICAL
WEAPONS
CONVENTION.—The
term ‘‘Chemical Weapons Convention’’ refers to the
Convention on the Prohibition of the Development,
Production, Stockpiling and Use of Chemical Weap-
ons and on Their Destruction of 1992.
(5) 
COMMODITY.—The 
term 
‘‘commodity’’
means any article, natural or manmade substance,
material, supply or manufactured product, including
inspection and test equipment, and excluding tech-
nical data.
(6) COORDINATING
COMMITTEE
(‘‘COCOM’’).—
The term ‘‘Coordinating Committee’’ or ‘‘COCOM’’
means the multilateral organization in which the
United States participates that cooperates in re-
stricting transfers of strategic items to certain coun-
tries.
(7) EXPORT.—The term ‘‘export’’ means—