[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3937 Reported in House (RH)]

                                                 Union Calendar No. 304
103d CONGRESS
  2d Session
                                H. R. 3937

             [Report No. 103-531, Parts I, II, III, and IV]

          Entitled the ``Export Administration Act of 1994''.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 2, 1994

  Mr. Gejdenson (by request) introduced the following bill; which was 
              referred to the Committee on Foreign Affairs

                              May 25, 1994

   Reported with amendments, and referred to the Committees on Armed 
 Services, Judiciary, Public Works and Transportation, Ways and Means, 
and the Permanent Select Committee on Intelligence for a period ending 
  not later than June 17, 1994, for consideration of such provisions 
   contained in the bill and amendment as fall within the respective 
         jurisdictions of those committees pursuant to rule X.
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                             June 16, 1994

   Reported from the Permanent Select Committee on Intelligence with 
                               amendments
[Omit the part struck through in italic and insert the part printed in 
                            boldface italic]

                             June 17, 1994

     Reported from the Committee on Ways and Means with amendments
   [Omit the part in bold parentheses and insert the part printed in 
                  boldface roman in bold parentheses]

                             June 17, 1994

     Reported from the Committee on Armed Services with amendments
[Omit the part in italic black brackets and insert the part printed in 
                            boldface roman]

                             June 17, 1994

    Committees on the Judiciary and Public Works and Transportation 
discharged; committed to the Committee of the Whole House on the State 
                of the Union, and ordered to be printed
 [For text of introduced bill, see copy of bill as introduced on March 
                                2, 1994]

_______________________________________________________________________

                                 A BILL


 
          Entitled the ``Export Administration Act of 1994''.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Omnibus Export Administration Act of 
1994''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents of this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.

                     TITLE I--EXPORT ADMINISTRATION

Sec. 101. Short title.
Sec. 102. Findings.
Sec. 103. Policy statement.
Sec. 104. General provisions.
Sec. 105. Multilateral controls.
Sec. 106. Emergency controls.
Sec. 107. Short supply controls.
Sec. 108. Foreign boycotts.
Sec. 109. Procedures for processing export license applications; other 
                            inquiries.
Sec. 110. Violations.
Sec. 111. Controlling proliferation activity.
Sec. 112. Administrative and judicial review.
Sec. 113. Enforcement.
Sec. 114. Export control authorities and procedures.
Sec. 115. Annual report.
Sec. 116. Definitions.
Sec. 117. Effects on other Acts.
Sec. 118. Conforming amendments to other laws.
Sec. 119. Effective date.
Sec. 120. Expiration date.
Sec. 121. Savings provision.

             TITLE II--NUCLEAR PROLIFERATION PREVENTION ACT

Sec. 201. Short title.

                  Part A--Reporting on Nuclear Exports

Sec. 211. Reports to Congress.
Sec. 212. Effective date.

              Part B--Sanctions for Nuclear Proliferation

Sec. 221. Imposition of sanctions on persons engaging in export 
                            activities that contribute to 
                            proliferation.
Sec. 222. Eligibility for assistance.
Sec. 223. Role of international financial institutions.
Sec. 224. Prohibition on assisting nuclear proliferation through the 
                            provision of financing.
Sec. 225. Export-Import Bank.
Sec. 226. Sanctions against countries involved in transfer of nuclear 
                            weapons or design information or 
                            components.
Sec. 227. Amendment to the Arms Export Control Act.
Sec. 228. Reward.
Sec. 229. Reports.
Sec. 230. Technical correction.
Sec. 231. Definitions.
Sec. 232. Effective date.

               Part C--International Atomic Energy Agency

Sec. 241. Bilateral and multilateral initiatives.
Sec. 242. IAEA internal reforms.
Sec. 243. Reporting requirement.
Sec. 244. Definitions.

                Part D--Repeal of Duplicative Provisions

Sec. 251. Repeal.

                     TITLE I--EXPORT ADMINISTRATION

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Export Act of 1994''.

SEC. 102. FINDINGS.

    The Congress makes the following findings:
            (1) Export controls are a part of a comprehensive response 
        to national security threats. United States exports should be 
        restricted only for critical national security, 
        nonproliferation, and foreign policy reasons.
            (2) Exports of certain commodities and technology may 
        adversely affect the national security of the United States by 
        making a direct and significant contribution to the military 
        potential of individual countries or by disseminating the 
        capability to produce or use weapons of mass destruction. 
        Therefore, the administration of export controls should 
        emphasize the control of these exports.
            (3) The acquisition of dual use commodities and technology 
        by those countries and end users whose actions or policies run 
        counter to United States national security interests may 
        enhance the military capabilities of those countries, 
        particularly their ability to produce and deliver nuclear, 
        chemical, and biological weapons. This enhancement threatens 
        the security of the United States and its allies, and places 
        additional demands on the defense budget of the United States. 
        Availability to certain countries and end users of items that 
        contribute to certain military capabilities or the 
        proliferation of weapons of mass destruction is a fundamental 
        concern of the United States and should be eliminated through 
        negotiations and other appropriate means whenever possible.
            (4) Exporting is critical to the economic health of the 
        United States and, therefore, to its national security as well. 
        With the growing importance of exports to sustained United 
        States economic growth and vitality, restrictions on exports 
        must be evaluated in terms of their effects on the United 
        States economy as well as on its national security. 
        Restrictions on exports from the United States have had serious 
        adverse effects on economic competitiveness and domestic 
        employment, particularly when restraints applied by the United 
        States have been more extensive than those imposed by other 
        countries or when United States export control policy is 
        uncertain.
            (5) Export controls cannot be the sole instrument of the 
        United States to prevent a country or end user from developing 
        weapons of mass destruction. For this reason, export controls 
        should be applied as part of a comprehensive response to 
        security threats.
            (6) The national security of the United States depends not 
        only on wise foreign policies and a strong defense, but also a 
        vibrant national economy. To be truly effective, export 
        controls should be applied uniformly by all suppliers.
            (7) Effective export controls also must be focused only on 
        those items that materially contribute to a country's or an end 
        user's military potential or potential to produce or use 
        weapons of mass destruction.
            (8) Unilateral export controls are generally not effective 
        in influencing the behavior of other governments or impeding 
        access to controlled countries of controlled items. In most 
        situations, unilateral controls alone impede access to United 
        States sources of supply without affecting the ability of 
        controlled countries to obtain controlled items elsewhere. 
        Moreover, unilateral controls permit foreign competitors to 
        serve markets the United States Government denies to United 
        States firms and workers, thus impairing the reliability of 
        United States suppliers in comparison with their foreign 
        competitors. At the same time, the need to lead the 
        international community or overriding national security or 
        foreign policy interests may justify unilateral controls in 
        specific cases.
            (9) The United States recognizes the importance of 
        comprehensive enforcement measures to maximize the 
        effectiveness of multilateral controls.
            (10) The United States' export control system must not be 
        overly restrictive or bureaucratic, or undermine the 
        competitive position of American industry. The export control 
        system must be efficient, responsive, transparent, and 
        effective.
            (11) Export restrictions that negatively affect the United 
        States industrial base ultimately weaken United States military 
        capabilities and lead to dependencies on foreign sources for 
        key components.
            (12) Minimization of restrictions on exports of 
        agricultural commodities and products is of critical importance 
        to the maintenance of a sound agricultural sector, to a 
        positive contribution to the balance of payments, to reducing 
        the level of Federal expenditures for agricultural support 
        programs, and to United States cooperation in efforts to 
        eliminate malnutrition and world hunger.

SEC. 103. POLICY STATEMENT.

    It is the policy of the United States to do the following:
            (1) To stem the proliferation of weapons of mass 
        destruction and the means to deliver them by--
                    (A) leading international efforts to control the 
                proliferation of chemical, biological, and nuclear 
                weapons and missiles;
                    (B) controlling involvement of United States 
                persons in, and contributions by United States persons 
                to, foreign programs intended to develop weapons of 
                mass destruction or missiles and the means to design, 
                develop, produce, stockpile, or use them; and
                    (C) implementing international treaties or other 
                agreements that require controls on exports of 
                designated items, reports on the production, 
                processing, consumption, and exports of such items, and 
                compliance with verification programs.
            (2) To restrict the export of items that would directly and 
        significantly contribute to the military potential of countries 
        so as to [pose a threat to the national security] prove 
        detrimental to the national security of the United States or 
        its allies.
            (3) To--
                    (A) minimize uncertainties in export control 
                policy; and
                    (B) encourage trade with all countries with which 
                the United States has diplomatic or trading relations, 
                except those countries with which such trade has been 
                determined by the President to be against the national 
                interest, and to strongly encourage the trading 
                partners of the United States not to trade with those 
                other countries.
            (4) To restrict export trade when necessary to protect the 
        domestic economy from the excessive drain of scarce materials 
        and to reduce the serious inflationary impact of foreign 
        demand.
            (5) To increase the effectiveness of and the reliance of 
        the United States upon multilateral coordination of controls 
        through effective export control regimes that--
                    (A) clearly identify countries and entities to 
                which, and end uses for which, exports of items are to 
                be controlled,
                    (B) incorporate lists of controlled items that are 
                critical to the control objectives,
                    (C) establish uniform criteria and procedures for 
                licensing, and
                    (D) implement means to curtail member countries 
                from granting licenses that render ineffective license 
                denials by the United States.
            (6) To impose unilateral controls, under the procedures and 
        conditions set forth in section 106, only when it is [essential 
        to] necessary to further significantly the national security or 
        foreign policy of the United States, and only after full 
        consideration of the economic impact of the controls and their 
        effectiveness in achieving their intended objectives.
            (7) To make all licensing determinations in a timely manner 
        so undue delays in the licensing process will not cause a 
        United States firm to lose an export sale.
            (8) To maintain a presumption of approval of license 
        applications for authority to export items for civil end use.
            (9) To use export controls to encourage other countries to 
        take immediate steps to prevent the use of their territories or 
        resources to aid, encourage, or give sanctuary to those persons 
        involved in directing, supporting, or participating in acts of 
        international terrorism.
            (10)(A) To counteract restrictive trade practices or 
        boycotts fostered or imposed by foreign countries against other 
        countries friendly to the United States or against any United 
        States person.
            (B) To encourage and, in specified cases, require United 
        States persons engaged in the export of commodities, 
        technology, and other information to refuse to take actions, 
        including furnishing information or entering into or 
        implementing agreements, which have the effect of furthering or 
        supporting the restrictive trade practices or boycotts fostered 
        or imposed by any foreign country against a country friendly to 
        the United States or against any United States person.
            (11) To consolidate export control functions and increase 
        administrative accountability, and thereby better serve the 
        exporting public by reducing and eliminating overlapping, 
        conflicting, and inconsistent regulatory burdens.
            (12) To minimize restrictions on the export of agricultural 
        commodities and products.

SEC. 104. GENERAL PROVISIONS.

    (a) Types of Licenses.--Under such conditions as the Secretary may 
impose, consistent with the provisions of this title, and subject to 
paragraph (2)(B), the Secretary may require the following types of 
licenses for exports of commodities and technology controlled under 
this title:
            (1) Specific exports and reexports.--An individual 
        validated license, authorizing a specific export.
            (2) Multiple exports and reexports.--(A) Validated licenses 
        authorizing multiple exports, in lieu of an individual 
        validated license for each such export.
            (B)(i) A distribution license, authorizing multiple exports 
        of general application computers to any country other than a 
        sanctioned country. The Secretary shall grant such distribution 
        licenses strictly on the basis of the reliability of the 
        applicant and foreign consignees with respect to the prevention 
        of diversion of commodities or technology, consistent with 
        section 105(a)(1). Not later than 30 days after an application 
        is submitted under section 109 for such a distribution license 
        to export general application computers, the Secretary shall 
        grant the license with respect to such distributors and end 
        users that the Secretary determines to be reliable. The 
        Secretary may deny the license application with respect to 
        those distributors and end users that present a risk of 
        diversion of commodities or technology, directly or indirectly, 
        consistent with the provisions of section 105(a)(1).
            (ii) For purposes of this subparagraph, a ``sanctioned 
        country'' is any country--
                    (I) the government of which the Secretary of State 
                has determined to be a government that has repeatedly 
                provided support for acts of international terrorism; 
                or
                    (II) against which the United States maintains an 
                embargo on all, or substantially all, exports pursuant 
                to the International Emergency Economic Powers Act or 
                the Trading With The Enemy Act.
            (iii) For purposes of this subparagraph, the term ``general 
        application computers'' means any computer system, computer 
        networking equipment, peripheral to a computer system, or 
        combination thereof, on which export controls are in effect 
        under section 105, except the following:
                    (I) Supercomputers.
                    (II) Computers specially designed for use in 
                connection with the capability described in 
                subparagraph (A) or (B) of section 105(a)(1).
                    (III) Computers specially designed for use in 
                connection with the surreptitious interception of wire 
                or oral communications.
    (b) General Prohibition.--Notwithstanding any other provision of 
this title, no person may export any item which such person knows will 
materially contribute to a program or activity for the design, 
development, or manufacture of a weapon of mass destruction or missile 
in a country that is not a member of, or a cooperating country with 
respect to, an export control regime controlling such weapon or 
missile.
    (c) United States Commodity Control Index.--
            (1) In general.--The Secretary shall--
                    (A) establish and maintain a United States 
                Commodity Control Index which shall identify all 
                commodities and technology on which controls are 
                imposed under this title;
                    (B) specify the license requirements applicable to 
                the items on the control index; and
                    (C) designate countries, and end uses or end users, 
                to which exports of commodities and technology are 
                controlled.
            (2) Contents.--The control index shall--
                    (A) consist of a security control list of all 
                commodities and technology on which export controls are 
                imposed under section 105, an emergency control list of 
                all commodities and technology on which export controls 
                are imposed under section 106, and a short supply 
                control list of all commodities on which export 
                controls are imposed under section 107;
                    (B) for each item on the control index, specify 
                with particularity the performance (where applicable) 
                and other identifying characteristics of the item and 
                provide a rationale for why the item is on the control 
                list;
                    (C) identify countries, and end uses or end users, 
                to which exports are controlled, including specific 
                projects and end users of concern, cross-referenced 
                with the list of commodities and technology on which 
                export controls are imposed; and
                    (D) be sufficiently specific and clear as to guide 
                exporters and licensing officers in determinations of 
                licensing requirements under this title.
            (3) Licensing of control index commodities and 
        technology.--A validated license may be required for the export 
        of those commodities and technology that are specifically and 
        clearly identified on the control index to countries, end uses, 
        and end users so designated on the control index. No authority 
        or permission may be required to export commodities and 
        technology not so identified to any country, end use, or end 
        user not so designated.
    (d) Delegation of Authority.--Subject to the provisions of this 
title, the President may delegate the power, authority, and discretion 
conferred upon the President by this title to such departments, 
agencies, and officials of the Government as the President considers 
appropriate, except that no authority under this title may be delegated 
to, or exercised by, any official of any department or agency the head 
of which is not appointed by the President, by and with the advice and 
consent of the Senate. The President may not delegate or transfer his 
power, authority, or discretion to overrule or modify any 
recommendation or decision made by the Secretary, the Secretary of 
Defense, or the Secretary of State under this title and may not 
delegate the authority under section 106(a)(4).
    (e) Notification of the Public; Consultation With Business.--The 
Secretary shall keep the public fully apprised of changes in export 
control policy and procedures instituted in conformity with this title 
with a view to encouraging trade. The Secretary shall consult regularly 
with representatives of a broad spectrum of enterprises, labor 
organizations, and citizens interested in or affected by export 
controls, in order to obtain their views on United States export 
control policy and the foreign availability of items subject to 
controls.
    (f) Export Advisory Committees.--
            (1) Appointment.--Upon his or her own initiative or upon 
        the written request of representatives of a substantial segment 
        of any industry which produces any items subject to export 
        controls under this title or being considered for such 
        controls, the Secretary shall appoint export advisory 
        committees with respect to any such items. Each such committee 
        shall consist of representatives of United States industry and 
        Government, including the Department of Commerce and other 
        appropriate departments and agencies of the Government. The 
        Secretary shall permit the widest possible participation by the 
        business community on the export advisory committees.
            (2) Functions.--Export advisory committees appointed under 
        paragraph (1) shall advise and assist the Secretary, and any 
        other department, agency, or official of the Government 
        carrying out functions under this title, on actions (including 
        all aspects of controls imposed or proposed) designed to carry 
        out the policies of this title concerning the items with 
        respect to which such export advisory committees were 
        appointed. Such committees, where they have expertise in such 
        matters, shall be consulted on questions involving--
                    (A) technical matters,
                    (B) worldwide availability and actual utilization 
                of production technology,
                    (C) licensing procedures which affect the level of 
                export controls applicable to any items,
                    (D) revisions of the security control list (as 
                provided in section 105(j)), including proposed 
                revisions of multilateral controls in which the United 
                States participates,
                    (E) the issuance of regulations,
                    (F) the impact and interpretation of existing 
                regulations,
                    (G) processes and procedures for review of licenses 
                and policy,
                    (H) any other questions relating to actions 
                designed to carry out this title, and
                    (I) the operation and conduct of international 
                business transactions.
        Nothing in this subsection shall prevent the United States 
        Government from consulting, at any time, with any person 
        representing an industry or the general public, regardless of 
        whether such person is a member of an export advisory 
        committee. Members of the public shall be given a reasonable 
        opportunity, pursuant to regulations prescribed by the 
        Secretary, to present evidence to such committees.
            (3) Reimbursement of expenses.--Upon the request of any 
        member of any export advisory committee appointed under 
        paragraph (1), the Secretary may, if the Secretary determines 
        it to be appropriate, reimburse such member for travel, 
        subsistence, and other necessary expenses incurred by such 
        member in connection with the duties of such member.
            (4) Chairperson.--Each export advisory committee appointed 
        under paragraph (1) shall elect a chairperson, and shall meet 
        at least every 3 months at the call of the chairperson, unless 
        the chairperson determines, in consultation with the other 
        members of the committee, that such a meeting is not necessary 
        to achieve the purposes of this subsection. Each such committee 
        shall be terminated after a period of 2 years, unless extended 
        by the Secretary for additional periods of 2 years each. The 
        Secretary shall consult each such committee on such termination 
        or extension of that committee.
            (5) Access to information.--To facilitate the work of the 
        export advisory committees appointed under paragraph (1), the 
        Secretary, in conjunction with other departments and agencies 
        participating in the administration of this title, shall 
        disclose to each such committee adequate information, 
        consistent with national security, pertaining to the reasons 
        for the export controls which are in effect or contemplated for 
        the items or policies for which that committee furnishes 
        advice.
            (6) Policy advice.--The Secretary shall appoint a group of 
        knowledgeable individuals from businesses affected by export 
        controls to provide advice to the Secretary on export control 
        policy issues. The chairperson of such group shall represent 
        export advisory committees regarding review of control lists 
        maintained by export control regimes and United States 
        proposals to export control regimes.
    (g) Development and Review of the Control List.--The Secretary of 
State, in consultation with appropriate departments and agencies, shall 
be responsible for conducting negotiations with other countries 
regarding multilateral arrangements for restricting the export of items 
to carry out the policies of this title. All appropriate departments 
and agencies shall consult among themselves and with the appropriate 
export advisory committees appointed under subsection (f) to develop 
initial technical parameters and product definitions in connection with 
the development of proposals within the United States Government to be 
made to multilateral regimes.
    (h) Right of Export.--No authority or permission to export may be 
required under this title, or under regulations issued under this 
title, except to carry out the policies set forth in section 103.
    (i) International Obligations Under Treaties.--Notwithstanding any 
other provision of this title containing limitations on authority to 
control exports, the Secretary, in consultation with the Secretary of 
State, may impose controls on exports to a particular country or 
countries in order to fulfill obligations of the United States under 
resolutions of the United Nations and under treaties to which the 
United States is a party.
    (j) Fees.--No fee may be charged in connection with the submission 
or processing of an export license application under this title.

SEC. 105. MULTILATERAL CONTROLS.

    (a) Authority.--
            (1) In general.--In order to carry out the policies set 
        forth in paragraphs (1), (2), and (5) of section 103, the 
        President may, in accordance with this section, prohibit or 
        curtail the export of any commodities or technology subject to 
        the jurisdiction of the United States, or exported by any 
        person subject to the jurisdiction of the United States, if 
        such commodities or technology--
                    (A) would directly and significantly enable a 
                country or end user to acquire the capability to 
                develop, produce, stockpile, use, or deliver weapons of 
                mass destruction; or
                    (B) would directly and significantly contribute to 
                the military capability of a country so as to [pose a 
                threat to the national security] prove detrimental to 
                the national security of the United States or its 
                allies.
            (2) Exercise of authority.--The authority granted by this 
        subsection shall be implemented by means of export licenses 
        required by the Secretary.
            (3) Consistency with export control regimes.--Any provision 
        of this title that provides that no authority or permission to 
        export may be required under this section shall not apply to 
        the extent that the applicable export control regime provides 
        otherwise.
    (b) Security Control List.--
            (1) In general.--(A) The Secretary shall, in consultation 
        with appropriate departments and agencies, establish and 
        maintain, as part of the control index, a security control 
        list, comprised of all commodities and technology on which 
        export controls are in effect under this section, and the 
        countries, and end uses or end users, to which the controls 
        apply. The security control list shall clearly identify the 
        specific commodities and technology the export of which is 
        controlled, and each country, and end use or end user, to which 
        such exports are controlled.
            (B) If a determination is made, with respect to the 
        inclusion of items on the security control list, that affects 
        the items controlled by an export control regime, the Secretary 
        of State shall propose to that regime any revisions that would 
        be necessary as a result of the determination. Such 
        determination shall become effective only to the extent such 
        revisions are agreed to by the export control regime.
            (2) Procedure for including items on the security control 
        list.--The Secretaries of Defense and Energy and the heads of 
        other appropriate departments and agencies shall identify 
        commodities and technology for inclusion on the security 
        control list. Those items which the Secretary and the Secretary 
        of Defense concur shall be subject to export controls under 
        this section shall comprise the security control list. If the 
        Secretary and the Secretary of Defense are unable to concur on 
        such items, as determined by the Secretary, the Secretary of 
        Defense may, within 20 days after receiving notification of the 
        Secretary's determination, refer the matter to the President 
        for resolution. The Secretary of Defense shall notify the 
        Secretary of any such referral. The President shall, not later 
        than 20 days after such referral, notify the Secretary of his 
        determination with respect to the inclusion of such items on 
        the security control list. Failure of the Secretary of Defense 
        to notify the President or the Secretary, or failure of the 
        President to notify the Secretary, in accordance with this 
        paragraph, shall be deemed by the Secretary to constitute 
        concurrence in the implementation of the actions proposed by 
        the Secretary regarding the inclusion of such items on the 
        security control list.
            [(2)] (3) Controlled commodities and technology.--Export 
        controls shall be imposed under this section if, and may be 
        imposed under this section only if, the export controls are 
        agreed to by an export control regime [which includes export 
        control purposes, items subject to control, policy of review 
        for license applications, and all controlled destinations, and 
        end uses or end users].
            [(3)] (4) Controlled countries, end uses, and end users.--A 
        country shall be designated a controlled country, and an end 
        use or end user shall be designated a controlled end use or 
        controlled end user, with respect to a particular commodity or 
        technology on the security control list if exports of such 
        commodity or technology to such country, end use, or end user 
        are controlled multilaterally pursuant to the agreement of an 
        export control regime described in paragraph (2).
    (c) Export Licensing Policies for Controlled Countries and 
Controlled End Uses or End Users.--
            (1) Exports to controlled countries, and end uses or end 
        users.--
                    (A) In general.--The Secretary shall require 
                authority or permission to export commodities and 
                technology on the security control list to a controlled 
                country, a controlled end use, or a controlled end 
                user.
                    (B) Presumption of approval for civil end uses.--
                Subject to subparagraph (C), applications to export 
                commodities or technology for civil end uses shall 
                carry a presumption of approval.
                    (C) Presumption of denial for controlled end 
                users.--Exports to controlled end users of commodities 
                or technology on which controls are in effect under 
                this section shall carry a presumption of denial.
                    [(D) Basis for denial.--Licenses may be denied 
                under this section only if the commodity or technology 
                meets the requirements of subparagraph (A) or (B) of 
                subsection (a)(1).]
            (2) Civil end use.--A determination under paragraph (1)(B) 
        of whether commodities or technology are for civil end use 
        shall be based on the following criteria:
                    (A) Whether the stated end use is civil.
                    (B) Whether the civil application of the 
                commodities or technology is well established in 
                countries other than controlled countries.
                    (C) Whether the commodities or technology proposed 
                for export are reasonable in quantity and quality for 
                the proposed end use.
                    (D) The risk of diversion to an unauthorized use or 
                consignee, including whether such diversion can be 
                verified.
    (d) Export Control Regimes and Licensing Policies.--For the 
purposes of creating effective multilateral export controls and 
strengthening the controls imposed by export control regimes, the 
Secretary of State shall, with respect to each export control regime, 
pursue negotiations with other members of such regime to accomplish the 
following objectives:
            (1) Development of a common list of commodities and 
        technology to which export controls are applied, and a common 
        list of countries, and end uses or end users, to which exports 
        are controlled, by members of the regime.
            (2) Agreement on the same treatment, to be applied by all 
        members of the regime, of exports and reexports to members of 
        the regime, cooperating countries, and other countries that are 
        not controlled countries.
            (3) National procedures resulting in comparable 
        implementation and enforcement of export controls among the 
        members of the regime, including laws providing appropriate 
        civil and criminal penalties and statutes of limitations 
        sufficient to deter potential violations.
            (4) Periodic meetings of high-level representatives of 
        governments participating in the regime for the purpose of 
        coordinating national export control policies and issuing 
        policy guidance for dissemination to exporters in participating 
        countries.
            (5) Establishment of procedures for regular consultation 
        among members of the regime on proposed export license 
        applications that includes consultation with individuals with 
        sufficient technical expertise to assess the licensing status 
        of exports and to ensure the reliability of end users.
            (6) An enforcement mechanism that provides authority for 
        adequately trained enforcement officers to investigate and 
        prevent illegal exports.
            (7) Development of a system of export control documentation 
        to verify the movement of commodities and technology.
            (8) Establishment of procedures for the coordination and 
        sharing of information on licensing, end users, and 
        enforcement.
            (9) The application of adequate national resources to carry 
        out paragraphs (1) through (8).
    (e) Incentives for Countries To Participate in or Cooperate With 
Export Control Regimes.--
            (1) General rule for regimes.--Unless the Secretary, in 
        consultation with the Secretary of State, determines that an 
        existing export control regime has failed to meet the 
        objectives set forth in subsection (d), exports to all 
        countries that are members of, or cooperating countries with 
        respect to, that regime shall be subject to the licensing 
        treatment set forth in this subsection. The Secretary shall 
        publish each determination under this paragraph in the Federal 
        Register.
            (2) Favorable licensing treatment.--Subject to paragraphs 
        (3) and (4), unless an export control regime is the subject of 
        a determination under paragraph (1), no authority or permission 
        may be required for exports of any commodity or technology 
        controlled by that regime to or among members of that regime or 
        cooperating countries with respect to that regime.
            (3) [Exception.--] Exceptions.--(A) If the Secretary 
        determines that a member of an export control regime, a 
        cooperating country with respect to such regime, or an end user 
        in a country that is such a regime member or in such a 
        cooperating country is engaging in a pattern and practice of 
        noncompliance with controls agreed to by the regime--
                    [(A)] (i) if the license treatment under paragraph 
                (2) is provided by the United States unilaterally, the 
                Secretary shall terminate such treatment with respect 
                to that noncomplying member, cooperating country, or 
                end user during the period in which the determination 
                is in effect; or
                    [(B)] (ii) in any other case the Secretary shall 
                seek a similar determination by the other members of 
                the regime concerning such noncompliance and, if such a 
                determination is made, the Secretary shall propose the 
                suspension of favorable licensing treatment of exports 
                to that noncomplying regime member, cooperating 
                country, or end user by all members of the regime 
                during the period in which that determination is in 
                effect.
            (B) If the Secretary of Defense determines that the absence 
        of a requirement of licenses for any exports described in 
        paragraph (2) would prove detrimental to the national security 
        of the United States the Secretary of Defense may request that 
        a license be required for such export. If the Secretary refuses 
        to require the license, the Secretary shall report to the 
        Committees on Armed Services of the House of Representatives 
        and the Senate, the Committee on Banking, Housing, and Urban 
        Affairs of the Senate, and the Committee on Foreign Affairs of 
        the House of Representatives on the reasons for refusing to 
        require a license.
            (4) Exception for exports to certain countries.--(A) Should 
        some of the members of an export control regime decide to 
        require licenses for the export to other members of the regime 
        or to cooperating countries of certain items controlled by the 
        regime, the United States may require such licenses if--
                    (i) the Secretary determines that a preponderance 
                of the world's supply of the items involved would be 
                subject to such export license requirements; or
                    (ii) after making a determination that a 
                preponderance of the world's supply of the items 
                involved would not be subject to such export license 
                requirements, the Secretary, in consultation with the 
                Secretary of State and the Secretary of Defense, 
                determines that the absence of a requirement of export 
                licenses for such items to such members of the regime 
                or cooperating countries would prove detrimental to the 
                national security of the United States.
        In any case in which the Secretary makes a determination under 
        clause (ii), the Secretary shall publish that determination, 
        together with a concise statement of its basis and the 
        estimated impact of the determination.
            (B) The Secretary shall notify the Congress at least 30 
        days before a license requirement described in subparagraph (A) 
        goes into effect.
    (f) Creation and Enhancement of Multilateral Control Regimes.--
            (1) Expansion of membership of regimes.--For each existing 
        export control regime and for each export control regime the 
        United States seeks to create, the Secretary of State, in 
        consultation with the Secretary, shall seek--
                    (A) to expand the membership of the regime to 
                include all countries that produce or export items 
                controlled pursuant to agreement by the regime and 
                share the objectives of the regime;
                    (B) the adoption of procedures for effective 
                implementation of the rules and guidelines of the 
                regime through uniform and consistent interpretations 
                of export controls agreed to by the regime;
                    (C) agreement to create a secretariat, for each 
                regime that seeks the prevention of the proliferation 
                of weapons of mass destruction or missiles, that would 
                call regular meetings of members of the regime and 
                establish rules for the regime; and
                    (D) agreement within each regime not to render 
                ineffective the denial of licenses by other regime 
                members and to establish procedures for the 
                coordination and regular exchange of information about 
                such denials.
            (2) Terrorist threats to regime members.--
                    (A) Presumption of denial for licenses.--For each 
                existing export control regime and for each export 
                control regime the United States seeks to create, the 
                Secretary of State, in consultation with the Secretary, 
                shall pursue negotiations with other members of such 
                regime to establish a presumption of denial for 
                licenses for exports that would directly contribute to 
                acts of terrorism directed at 1 or more regime 
                members.--
                    (B) Reports to congress.--The Secretary shall 
                annually report to the Committee on Foreign Affairs of 
                the House of Representatives and the Committee on 
                Banking, Housing, and Urban Affairs of the Senate on 
                the progress made toward meeting the objectives set 
                forth in subparagraph (A).
            (3) Disclosure of nonproprietary information.--The 
        Secretary of State shall propose the following to each export 
        control regime:
                    (A) Full disclosure on a confidential basis to all 
                members of the regime of all nonproprietary information 
                relating to all licenses granted for the export of 
                items controlled by the regime, consistent with the 
                protection of intelligence sources and methods.
                    (B) A list of controlled items of particular 
                sensitivity for which such disclosure shall be given 15 
                days before the license is issued.
    (g) Transparency of Multilateral Control Regimes.--
            (1) Publication of information on each existing regime.--
        Within 6 months after the date of the enactment of this Act, 
        the Secretary shall publish in the Federal Register the 
        following information with respect to export controls agreed to 
        by each multilateral control regime existing on the date of the 
        enactment of this Act:
                    (A) Purposes of the controls.
                    (B) Members of the regime.
                    (C) Licensing policy.
                    (D) Items subject to the controls, together with 
                all public notes, understandings, and other aspects of 
                the agreement of the regime, and all changes thereto.
                    (E) Controlled countries, controlled end uses, and, 
                to the extent not inconsistent with requirements of the 
                regime, controlled end users.
                    (F) Rules of interpretation.
                    (G) Major policy actions.
                    (H) The rules and procedures of the regime for 
                establishing and modifying any matter described in 
                subparagraphs (A) through (G) and for reviewing export 
                license applications.
            (2) Information regarding controlled end users.--The United 
        States shall propose to each export control regime to permit a 
        member of the regime to publish the controlled end users 
        (including projects of concern) agreed to by the regime.
            (3) New regimes.--Within 2 months after joining or 
        organizing a new export control regime, the Secretary shall 
        publish the information described in subparagraphs (A) through 
        (H) of paragraph (1).
            (4) Publication of changes.--The Secretary shall publish in 
        the Federal Register any changes in the information published 
        under this subsection within 2 months after the applicable 
        regime adopts such changes.
    (h) Effectiveness of Multilateral Control Regimes and 
Implementation By Their Members.--
            (1) Annual evaluation.--At least once each year, the 
        Secretary shall evaluate the effectiveness of each export 
        control regime and the effectiveness of the implementation of 
        the regime by each of its members, including the United States. 
        Such evaluation shall be included in the annual report issued 
        under section 115.
            (2) Contents.--The evaluation under paragraph (1) shall 
        include the following for the calendar year for which the 
        report is issued:
                    (A) Items not controlled by the export control 
                regime that the United States believes should be 
                controlled if the regime is to achieve its control 
                purposes effectively.
                    (B) Countries that are sources of foreign 
                availability for each item controlled by agreement of 
                the regime. Such countries shall include members of the 
                regime, cooperating countries with respect to the 
                regime, and countries that are not members of the 
                regime.
                    (C) Countries that are risks for diverting 
                controlled items to controlled countries, end uses, or 
                end users.
                    (D) Members of the regime that have not, in the 
                judgment of the Secretary, implemented the objectives 
                set forth in subsection (d).
                    (E) The extent to which the regime and each of its 
                members have adopted and are implementing uniform 
                licensing policies.
                    (F) The extent to which the licensing policy of the 
                regime and each of its members adequately prevents the 
                export licensing decisions of one member of the regime 
                from rendering ineffective the denial of license 
                applications by another member.
            (3) Comments.--Before beginning each evaluation under this 
        subsection, the Secretary shall request comments from the 
        public and the export advisory committees appointed under 
        section 104(f) regarding the effectiveness of each export 
        control regime. The Secretary shall give the public at least 30 
        days to provide comments under this paragraph.
    (i) Foreign Availability.--
            (1) Foreign availability to controlled countries.--
                    (A) In general.--The Secretary, in consultation 
                with the Secretary of Defense, other appropriate 
                Government departments and agencies, and appropriate 
                export advisory committees appointed under section 
                104(f), shall review, on a continuing basis, the 
                availability of controlled items to controlled 
                countries from sources outside the United States, 
                including countries that participate with the United 
                States in export control regimes.
                    (B) Items controlled by cocom.--(i) In any case in 
                which the Secretary determines under paragraph (3), 
                with the concurrence of the Secretary of Defense, and 
                in accordance with procedures and criteria which the 
                Secretary shall establish by regulation, that any item 
                controlled for export pursuant to the agreement of 
                COCOM is available in fact[, or will be available in 
                fact within 2 years in the future,] to controlled 
                countries from sources outside the United States in 
                sufficient quantity and of comparable quality so that 
                the requirement of a validated license for the export 
                of such item is [or would be ineffective] ineffective 
                in achieving the purposes of this section--
                            (I) the President shall propose to COCOM 
                        that export controls on such item be 
                        eliminated, or
                            (II) if the President determines that the 
                        absence of export controls on the item would 
                        prove detrimental to the national security of 
                        the United States, the President shall actively 
                        pursue negotiations with the governments of the 
                        appropriate foreign countries for the purpose 
                        of eliminating such availability.
                No later than the commencement of such negotiations, 
                the President shall notify in writing the Committee on 
                Banking, Housing, and Urban Affairs and the Committee 
                on Armed Services of the Senate and the Committee on 
                Foreign Affairs and the Committee on Armed Services of 
                the House of Representatives that the President has 
                begun such negotiations and why the President believes 
                it is important to the national security that export 
                controls on the item involved be maintained.
                    (ii) If, within 6 months after the President's 
                determination under clause (i)(II) that export controls 
                be maintained notwithstanding foreign availability, the 
                foreign availability has not been eliminated, the 
                Secretary may not, after the end of that 6-month 
                period, require a validated license for the export of 
                the item involved. The President may extend the 6-month 
                period for an additional period of 12 months if the 
                President certifies to the Congress that the 
                negotiations involved are progressing and that the 
                absence of the export controls involved would prove 
                detrimental to the national security of the United 
                States.
                    (C) Items controlled by other regimes.--(i) In any 
                case in which the Secretary determines under paragraph 
                (3), with the concurrence of the Secretary of Defense, 
                and in accordance with procedures and criteria which 
                the Secretary shall establish by regulation, that any 
                item controlled for export pursuant to an export 
                control regime other than COCOM is available in fact[, 
                or will be available in fact within 2 years in the 
                future,] to controlled countries from sources outside 
                the United States in sufficient quantity and of 
                comparable quality so that the requirement of a 
                validated license for the export of such item is [or 
                would be ineffective] ineffective in achieving the 
                purposes of this section, the President shall actively 
                pursue negotiations with the governments of the 
                appropriate foreign countries for the purpose of 
                eliminating such availability. No later than the 
                commencement of such negotiations, the President shall 
                notify in writing the Committee on Banking, Housing, 
                and Urban Affairs and the Committee on Armed Services 
                of the Senate and the Committee on Foreign Affairs and 
                the Committee on Armed Services of the House of 
                Representatives that the President has begun such 
                negotiations, indicating whether the President believes 
                it is important that export controls on the item 
                involved be maintained to avoid a significant risk to 
                the national security interests of the United States.
                    (ii) If, within 120 days after a determination of 
                foreign availability described in clause (i) is made, 
                the foreign person or persons that are [or will be] the 
                source of such foreign availability have not taken the 
                steps necessary to eliminate such availability, the 
                President shall propose to the export control regime 
                controlling the commodities or technology that are the 
                subject of the foreign availability determination--
                            (I) that such controls be eliminated, or
                            (II) that the members of the regime impose 
                        all of the sanctions described in clause (iii) 
                        on such foreign person or persons.
                    (iii) The sanctions referred to in clause (ii) to 
                be imposed on a foreign person or persons are the 
                following:
                            (I) A prohibition on the export to such 
                        person or persons of all items controlled by 
                        such export control regime.
                            (II) A prohibition on the import of all 
                        goods that are produced by such person or 
                        persons.
                            (III) A prohibition on procurement by such 
                        governments of any services, commodities, 
                        technology, or other products from or produced 
                        by such person or persons.
                    (iv) If, within 90 days after a proposal under 
                clause (ii)(II) regarding sanctions is made to an 
                export control regime, such regime has not agreed to 
                such proposal, the President shall either propose to 
                such regime that the export controls on the commodities 
                or technology that are the subject of the foreign 
                availability determination be eliminated, or report to 
                the Congress that the President has determined that 
                elimination of the controls would create a significant 
                risk to the national security interests of the United 
                States. Such report shall include the basis for such 
                determination.
            (2) Notice of all foreign availability assessments.--
        Whenever the Secretary undertakes a foreign availability 
        assessment under this subsection, the Secretary shall publish 
        notice of such assessment in the Federal Register.
            (3) Procedures for making determinations.--
                    (A) Procedures.--(i) The Secretary shall make a 
                foreign availability determination under paragraph (1) 
                on the Secretary's own initiative, upon the 
                certification of an export advisory committee appointed 
                under section 104(f) with respect to the commodities or 
                technology concerning which the certification is made, 
                or upon receipt of an allegation from an export license 
                applicant that such availability exists. [In making any 
                such determination, the Secretary shall accept the 
                representations of applicants made in writing and 
                supported by reasonable evidence, unless such 
                representations are contradicted by reliable evidence, 
                including scientific or physical examination, expert 
                opinion based upon adequate factual information, or 
                intelligence information.]
                    (ii) In making determinations of foreign 
                availability, the Secretary may consider such factors 
                as cost, reliability, the availability and reliability 
                of spare parts and the cost and quality thereof, 
                maintenance programs, durability, quality of end 
                products produced by the item subject to the 
                determination, and scale of production.
                    (iii) For purposes of this subparagraph, the term 
                ``evidence'' may include such items as foreign 
                manufacturers' catalogues, brochures, operations or 
                maintenance manuals, articles from reputable trade 
                publications, photographs, and depositions based upon 
                eyewitness accounts.
                    (B) Certifications by export advisory committees.--
                At the same time as an export advisory committee 
                submits a certification to the Secretary under 
                subparagraph (A)(i), the committee shall submit the 
                certification to the Congress. The Secretary shall 
                investigate the foreign availability so certified and, 
                not later than 90 days after the certification is made, 
                shall submit a report to the export advisory committee 
                and the Congress stating that--
                            (i) the foreign availability does exist, 
                        and the applicable steps are being taken under 
                        paragraph (1); or
                            (ii) the foreign availability does not 
                        exist.
                To the extent necessary, the report may be submitted on 
                a classified basis.
                    (C) Allegations by export license applicants.--
                Within 4 months after receiving an allegation described 
                in subparagraph (A)(i) from an export license 
                applicant, the Secretary shall determine whether the 
                foreign availability exists, and shall so notify the 
                applicant. If the Secretary has determined that the 
                foreign availability exists, the Secretary shall, upon 
                making such determination, submit the determination for 
                review to other departments and agencies as the 
                Secretary considers appropriate. [The Secretary's 
                determination of foreign availability shall not require 
                the concurrence or approval of any such department or 
                agency.] Not later than 30 days after the Secretary 
                makes the determination, the Secretary shall respond in 
                writing to the applicant and submit for publication in 
                the Federal Register, that--
                            (i) the foreign availability does exist, 
                        and the applicable steps are being taken under 
                        paragraph (1); or
                            (ii) the foreign availability does not 
                        exist.
                    (D) Role of secretary of defense.--All 
                determinations of the Secretary under this subsection 
                of whether foreign availability exists shall be made 
                with the concurrence of the Secretary of Defense.
                    (4) Sharing of information.--Each department or 
                agency of the United States, including any intelligence 
                agency, and all contractors with any such department or 
                agency, shall, upon the request of the Secretary and 
                consistent with the protection of intelligence sources 
                and methods as determined by the Director of Central 
                Intelligence, furnish information to the Department of 
                Commerce concerning foreign availability of items 
                subject to export controls under this section, 
                including allowing access to any information from a 
                laboratory or other facility within such department or 
                agency.
            (5) Congressional notifications.--The Secretary shall 
        annually notify the Committee on Foreign Affairs of the House 
        of Representatives, and the Committee on Banking, Housing, and 
        Urban Affairs of the Senate, of all allegations of foreign 
        availability received from export license applicants under 
        paragraph (3), and the actions the Secretary has taken pursuant 
        to such allegations.
    (j) Review of Controlled Items.--
            (1) In general.--The Secretary shall review all commodities 
        and technology on the security control list maintained under 
        subsection (b) at least annually. At the conclusion of each 
        review, the Secretary, with the concurrence of the Secretaries 
        of Defense and Energy, shall justify the inclusion of each item 
        on the security control list, remove items from the security 
        control list, change the specifications of items on the list, 
        or add items to the list, in order to meet the requirements of 
        subsection (a)(1). The data developed from such reviews shall 
        be used in formulating United States proposals for revision of 
        multilateral controls in the applicable export control regimes.
            (2) Considerations.--In conducting the annual review, the 
        Secretary shall--
                    (A) consult with the appropriate export advisory 
                committees appointed under section 104(f) and consider 
                recommendations of such committees with respect to 
                proposed changes in the security control list;
                    (B) consider the results of foreign availability 
                determinations made under subsection (i);
                    (C) consider comments received pursuant to the 
                notice of review provided under paragraph (3)(B); and
                    (D) consult with other appropriate departments or 
                agencies.
            (3) Procedures.--
                    (A) Duration of review.--The annual review required 
                under paragraph (1) may not extend beyond 180 days 
                after such review is begun.
                    (B) Notice of review.--Before beginning each annual 
                review, the Secretary shall publish a notice of that 
                review in the Federal Register and shall provide a 30-
                day period for comments and submission of data, with or 
                without oral presentation, by interested Government 
                agencies, exporters, and other interested parties.
                    (C) Revisions.--The Secretary, with the concurrence 
                of the Secretaries of Defense and Energy, shall make a 
                determination of any revisions in the security control 
                list not later than 30 days after the end of the review 
                period. In making such determination, the Secretary 
                shall consult with the appropriate departments or 
                agencies. [The concurrence or approval of any other 
                department or agency shall not be required before any 
                such revision is made.]
                    (D) Proposals to export control regimes.--If a 
                revision of the security control list under this 
                paragraph affects the items controlled by an export 
                control regime, the Secretary of State shall propose 
                such revision to that regime. Such revision shall 
                become effective only to the extent such revision is 
                agreed to by the export control regime.
                    (E) Publication of revisions.--The Secretary shall 
                publish in the Federal Register any revisions in the 
                list, with an explanation of the reasons for the 
                revisions.
    (k) Indexing.--The Secretary shall develop, with the assistance of 
the export advisory committees appointed under section 104(f), 
methodologies and procedures for indexing items on the security control 
list where performance capabilities are relevant and measurable. Such 
methodologies and procedures shall provide for increases in the 
performance levels of commodities and technology on the security 
control list and shall provide for the technical specifications below 
which no authority or permission to export is required as compared to 
the most technologically advanced commercially available version of the 
same or equivalent commodities or technology. Such methodologies and 
procedures shall be published in the Federal Register and used in the 
annual review of the security control list under subsection (j).
    (l) Review of Export Controls on Computer Equipment and 
Technology.--
            (1) In general.--In order to ensure that requirements of 
        validated licenses are periodically removed as computer 
        equipment, computer communications and networking equipment, 
        computer software, and related technology, that are subject to 
        such requirements become obsolete with respect to the specific 
        objectives of the export controls requiring such licenses, the 
        Secretary shall conduct periodic reviews of such controls. The 
        Secretary shall complete such a review not later than 6 months 
        after the date of the enactment of this Act, and thereafter as 
        part of the reviews conducted under subsection (j).
            (2) Review elements.--In conducting each review under 
        paragraph (1), the Secretary shall do the following with 
        respect to the export controls described in paragraph (1):
                    (A) Objectives of controls.--The Secretary shall 
                identify the specific objectives of the export 
                controls, as part of a comprehensive strategy to 
                prevent the proliferation of weapons of mass 
                destruction, for the 12-month period following 
                completion of the review, for each country or group of 
                countries for which a validated license is required. 
                When an objective of an export control is to defer the 
                development of a specific capability in such country or 
                group of countries, the Secretary shall specify for 
                what period of time the controls are expected to defer 
                such capability.
                    (B) Quantity and performance.--The Secretary shall 
                estimate, for the 12-month period described in 
                subparagraph (A), the quantity and performance 
                (measured in Composite Theoretical Performance or other 
                relevant performance metrics) of computer systems that 
                must be obtained by each country or group of countries 
                for which a validated license is required in order to 
                defeat the objectives of the export controls.
                    (C) Availability to controlled destinations.--The 
                Secretary shall evaluate the effectiveness of the 
                export controls in achieving their specific objectives, 
                including explicit descriptions of the availability 
                from sources outside the United States, during the 12-
                month period described in subparagraph (A), to 
                controlled countries of computer equipment, computer 
                communications and networking equipment, computer 
                software, and related technology on which the export 
                controls are in effect.
                    (D) Economic impact.--The Secretary shall evaluate 
                the economic impact, during the 12-month period 
                described in subparagraph (A), of the export controls 
                on exporting companies, including estimates of lost 
                sales, loss in market share, and administrative 
                overhead.
            (3) Increase in thresholds.--
                    (A) Increases.--After completing each review under 
                this subsection, the Secretary shall, [after 
                consultation with appropriate departments or agencies] 
                with the concurrence of the Secretaries of Defense and 
                Energy, increase, if warranted by the findings of the 
                review, the following export control thresholds, 
                consistent with the obligations of the United States 
                under export control regimes:
                            (i) The performance levels at which 
                        computer systems are eligible for delivery 
                        under a distribution license or other license 
                        authorizing multiple exports.
                            (ii) The performance levels defining a 
                        ``supercomputer''.
                            (iii) The performance levels at which an 
                        individual validated license is required for 
                        the export to a controlled country of computer 
                        systems and peripherals, software, parts, and 
                        communications equipment normally supplied with 
                        such computer systems.
                In any recommendation for or publication of such 
                increase, the Secretary shall include the specific 
                rationale for the increase.
                    (B) Proposals to multilateral regimes.--The 
                Secretary of State shall, within 30 days after a 
                determination by the Secretary to increase thresholds, 
                propose to the other members of the applicable export 
                control regime the elimination of the applicable 
                controls on the items with respect to which such 
                determination is made, in accordance with the 
                procedures of the regime, and publish a notice of such 
                proposal in the Federal Register.
            (4) Report.--The Secretary shall transmit to the Congress, 
        and to any export advisory committee appointed under section 
        104(f) with respect to computer systems, a report on the 
        findings of each review conducted under this subsection, 
        addressing each requirement set forth in paragraph (2).
            (5) Hearings.--The Secretary shall conduct public hearings 
        not less than once each year in order to solicit information 
        from all interested parties on all matters to be addressed in 
        each review conducted under this subsection.
            (6) Removal of controls on mass-market computer 
        equipment.--
                    (A) Mass-market computer equipment defined.--For 
                purposes of this paragraph, the term ``mass-market 
                computer equipment'' means any computer system, 
                computer networking equipment, peripheral to a computer 
                system, part or subassembly of a computer system, or 
                combination thereof, on which export controls are in 
                effect under this section, and which will have been 
                installed for end use outside the United States in a 
                quantity exceeding 100,000 units over a 12-month 
                period, as determined under subparagraph (B).
                    (B) Anticipatory review of mass-market computer 
                equipment.--Not later than--
                            (i) 6 months after the date of the 
                        enactment of this Act, and
                            (ii) the end of each 1-year period 
                        occurring thereafter,
                the Secretary shall, in consultation with the Computer 
                Systems Technical Advisory Committee (or successor 
                export advisory committee), industry groups, and 
                computer equipment producers, identify those items 
                described in subparagraph (A) (including computer 
                systems differentiated in terms of Composite 
                Theoretical Performance) that will be installed for end 
                use outside the United States in a quantity exceeding 
                100,000 units during the 12-month period beginning on 
                the applicable date described in clause (i) or (ii). 
                For purposes of this paragraph, estimates of numbers of 
                items that will be installed shall be based on reliable 
                estimates provided by producers of such items.
                    (C) Action by the secretary.--Not later than 30 
                days after an item is determined by the Secretary under 
                subparagraph (B) to be mass-market computer equipment, 
                the Secretary of State shall propose to the export 
                control regime controlling the equipment the eliminaton 
                of controls on such equipment in accordance with the 
                procedures of the appropriate regime and shall publish 
                a notice of such proposal in the Federal Register.
    (m) Trade Shows.--Consistent with the agreements of applicable 
multilateral export control regimes, an application for a license for 
the export to a controlled country of any commodity on which export 
controls are in effect under this section, without regard to the 
technical specifications of the commodity, for the purpose of 
demonstration or exhibition at a trade show shall carry a presumption 
of approval if--
            (1) the United States exporter retains title to, and 
        maintains effective control of, the commodity, and complies 
        with any safeguard requirement imposed by the Secretary, during 
        the entire period in which the commodity is in the controlled 
        country; and
            (2) the exporter removes the commodity from the controlled 
        country within a reasonable period of time after the conclusion 
        of the trade show, as defined in regulations issued by the 
        Secretary.
    (n) Study on Computer Export Controls.--
            (1) Arrangements for and content of study.--
                    (A) Arrangements for conducting study.--The 
                Secretary, not later than 60 days after the date of the 
                enactment of this Act, shall enter into appropriate 
                arrangements with the National Academy of Sciences and 
                the National Academy of Engineering (hereafter in this 
                subsection referred to as the ``Academies'') to conduct 
                a comprehensive study on the extent to which exports of 
                computers can be effectively controlled, and the policy 
                reasons for maintaining such controls.
                    (B) Requirement of study.--Recognizing the need to 
                enhance the competitiveness of the United States 
                computer industry while preventing sensitive technology 
                from being used to develop weapons of mass destruction 
                by controlled countries, the study shall--
                            (i) examine the trends of the computer 
                        industry, including those toward new and more 
                        powerful computer systems based upon ``Parallel 
                        Computing'' and ``Virtual Parallel 
                        Processing'', and their effect on the extent to 
                        which exports of computer systems can be 
                        effectively controlled, with respect to the 
                        factors described in clause (ii);
                            (ii) examine the factors that make it 
                        increasingly difficult to control the export of 
                        computers, including the size and expandability 
                        of many modern computer systems and the 
                        availability of such computer systems from 
                        foreign sources; and
                            (iii) the effect of export controls on the 
                        competitiveness of the United States computer 
                        industry.
            (2) Advisory panel.--In conducting the study under 
        paragraph (1), the Academies shall appoint an Advisory Panel of 
        not more than 12 members who shall be selected from among 
        individuals who, by virtue of their experience and expertise, 
        are knowledgeable in relevant scientific, business, legal, or 
        administrative matters. No individual may serve as a member who 
        is an elected or appointed official or employee in the 
        executive, legislative, or judicial branch of any government. 
        In selecting members of the Advisory Panel, the Academies shall 
        seek suggestions from the President, the Congress, and 
        representatives of industry and the academic community.
            (3) Executive branch cooperation.--The Secretary, the 
        Secretary of Defense, the Secretary of State, the Director of 
        the Central Intelligence Agency, and the head of any department 
        or agency that exercises authority under this title--
                    (A) shall furnish to the Academies, upon request 
                and under appropriate safeguards, classified or 
                unclassified information which the Academies determine 
                to be necessary for the purposes of conducting the 
                study required by this subsection; and
                    (B) shall work with the Academies on such problems 
                related to the study as the Academies consider 
                necessary.
            (4) Report.--Under the direction of the Advisory Panel, the 
        Academies shall prepare and submit to the President and the 
        Congress, not later than 9 months after entering into the 
        arrangements referred to in paragraph (1), a report which 
        contains a detailed statement of findings and conclusions of 
        the Academies from the study conducted under paragraph (1), 
        together with their recommendations for the complete removal of 
        controls from computers or specifying the level of technology 
        to which controls on computers should be reduced.

SEC. 106. EMERGENCY CONTROLS.

    (a) Authority.--
            (1) In general.--In order to carry out the policy set forth 
        in paragraphs (6) and (9) of section 103, the President may, in 
        accordance with the provisions of this section, unilaterally 
        prohibit or curtail the export of any commodity or technology 
        subject to the jurisdiction of the United States or exported by 
        any person subject to the jurisdiction of the United States.
            (2) Exercise of authority.--
                    (A) In general.--The authority contained in this 
                section shall be exercised by the Secretary, in 
                consultation with the Secretary of State, the Secretary 
                of Defense, and such other departments and agencies as 
                the President considers appropriate.
                    (B) National security items.--The Secretaries of 
                Defense and Energy and the heads of other appropriate 
                departments and agencies shall identify commodities and 
                technology, the export of which would prove detrimental 
                to the national security of the United States, for 
                control under this section. If the Secretary and the 
                Secretary of Defense are unable to concur on such 
                items, as determined by the Secretary, the Secretary of 
                Defense may, within 20 days after receiving 
                notification of the Secretary's determination, refer 
                the matter to the President for resolution. The 
                Secretary of Defense shall notify the Secretary of any 
                such referral. The President shall, not later than 20 
                days after such referral, notify the Secretary of his 
                determination with respect to the control of such items 
                under this section. Failure of the Secretary of Defense 
                to notify the President or the Secretary, or failure of 
                the President to notify the Secretary, in accordance 
                with this paragraph, shall be deemed by the Secretary 
                to constitute concurrence in the implementation of the 
                actions proposed by the Secretary regarding the control 
                of such items under this section.
            (3) Expiration of authority.--
                    (A) In general.--Any controls imposed under this 
                section shall expire 6 months after they are imposed, 
                unless they are terminated earlier by the President or 
                unless they are extended under this section, except 
                that such controls may be adopted as multilateral 
                controls under section 105 or included in an embargo 
                described in subsection (f)(1) that is imposed by the 
                President under the International Emergency Economic 
                Powers Act, the Trading with the Enemy Act, or other 
                provision of law other than this title. Any extension 
                or subsequent extension of the controls under this 
                section shall be for a period of not more than 1 year 
                each. The controls shall expire at the end of each such 
                extension unless they are terminated earlier by the 
                President or unless they are further extended under 
                this section, except that such controls may be adopted 
                as multilateral controls under section 105 or included 
                in an embargo described in the first sentence of this 
                subparagraph.
                    (B) Exception for multilateral agreements.--
                Subparagraph (A) shall not apply to controls imposed by 
                the President in order to fulfill obligations of the 
                United States under resolutions of the United Nations 
                or under treaties to which the United States is a 
                party. If such a resolution or treaty ceases to be in 
                effect, controls imposed by the President pursuant to 
                such resolution or treaty shall immediately cease to be 
                in effect.
            (4) Criteria.--The President may impose controls under this 
        section only if the President--
                    (A) determines that the controls are [essential to] 
                necessary to further significantly the national 
                security or foreign policy of the United States or its 
                allies, including the prevention of acts of 
                international terrorism;
                    [(B) determines that no other alternative means can 
                achieve the national security or foreign policy 
                objectives of the United States within a reasonable 
                period of time, including all other possible sanctions;
                    [(C)] (B) determines that the controls can 
                reasonably be expected to achieve their intended 
                objectives after having taken into consideration other 
                factors, including the availability from one or more 
                countries of comparable commodities and technology to 
                those on which the controls are to be imposed;
                    [(D)] (C) determines that the United States has the 
                ability to enforce all aspects of the proposed controls 
                effectively;
                    [(E)] (D) determines that the effect of the 
                proposed controls on the export performance of the 
                United States, the competitive position of the United 
                States as a supplier of items, or on the economic well-
                being of individual United States companies and their 
                employees and communities does not exceed the benefits 
                to the foreign policy or national security interests of 
                the United States; and
                    [(F)] (E) identifies those commodities and 
                technology to be controlled, determines that they must 
                be controlled in order to achieve the intended purpose 
                of the controls, and describes the reasons for 
                selecting such items.
            (5) Negotiations.--The President shall commence, through 
        the Secretary of State, within 10 days after the imposition of 
        controls under this section, negotiations with other countries 
        to adopt the controls so that such controls may be imposed 
        under section 105, unless such controls are imposed under 
        paragraph (3)(B).
    (b) Consultation With Industry.--The Secretary in every possible 
instance shall consult with and seek advice from affected United States 
industries and export advisory committees appointed under section 
104(f) before the imposition, expansion, or extension of any export 
control under this section.
    (c) Consultation With Other Countries.--When expanding or extending 
export controls under this section (unless such action is taken under 
subsection (a)(3)(B)), the Secretary of State, in consultation with the 
Secretary, shall, at the earliest appropriate opportunity, consult with 
the countries with which the United States maintains export controls 
cooperatively, and with other countries, as appropriate, to advise them 
of the reasons for the action and to urge them to adopt similar 
controls, so that the controls may be imposed under section 105.
    (d) Consultations With the Congress.--
            (1) Consultations.--The Secretary may impose, expand, or 
        extend export controls under this section only after 
        consultation with the Congress, including the Committee on 
        Foreign Affairs of the House of Representatives and the 
        Committee on Banking, Housing, and Urban Affairs of the Senate.
            (2) Reports.--The Secretary may not impose or expand 
        controls under subsection (a) until the Secretary has submitted 
        to the Congress a report--
                    (A) addressing each of the criteria set forth in 
                subparagraphs (A) through [(F)] (E) of subsection 
                (a)(4);
                    (B) specifying the purpose of the controls;
                    (C) describing the nature, the subjects, and the 
                results of, or plans for, the consultation with 
                industry under subsection (b) and with other countries 
                under subsections (a)(5) and (c);
                    (D) specifying the nature and results of any 
                alternative means attempted to achieve the objectives 
                of the controls, or the reasons for imposing or 
                expanding the controls without attempting any such 
                alternative means; and
                    (E) describing the availability from other 
                countries of items comparable to the items subject to 
                the controls, and describing the nature and results of 
                the efforts made to secure the cooperation of foreign 
                governments in controlling the foreign availability of 
                such comparable commodities or technology.
        Such report shall also indicate how such controls will further 
        significantly the policies of the United States as set forth in 
        section 103 or will further its declared international 
        obligations.
            (3) Submission of report to gao.--Each report required by 
        paragraph (2) shall, at the same time it is submitted to the 
        Congress, also be submitted to the General Accounting Office 
        for the purpose of assessing the report's full compliance with 
        the purpose of this subsection.
    (e) Seeking Multilateral Support for Unilateral Controls.--The 
Secretary and the Secretary of State shall have a continuing duty to 
seek support, by other countries and by multilateral export control 
regimes, for all controls imposed under this section.
    (f) Procedures and Limitations on Emergency Controls.--
            (1) Imposition of an embargo.--An embargo under subsection 
        (a)(3)(A) shall include the prohibition of all exports to and 
        imports from the country against which the controls under this 
        section were imposed, except that such an embargo need not 
        include a prohibition on exports of items described in section 
        114(k).
            (2) Cessation of emergency controls.--
                    (A) In general.--Controls imposed under this 
                section on commodities or technology shall cease to be 
                in effect immediately upon--
                            (i) the imposition of multilateral controls 
                        under section 105 on the same commodities and 
                        technology to the country or end user, or for 
                        the end use, with respect to which the controls 
                        were imposed under this section; or
                            (ii) the imposition, under the 
                        International Emergency Economic Powers Act, 
                        the Trading with the Enemy Act, or other 
                        provision of law, of an embargo described in 
                        paragraph (1).
                    (B) Conversion to multilateral agreements.--If the 
                President imposes controls on commodities or technology 
                to a country or end user, or for an end use, under this 
                section in order to fulfill obligations of the United 
                States under resolutions of the United Nations or under 
                a treaty to which the United States is a party, any 
                controls imposed prior thereto under this section on 
                the same commodities or technology to the same country 
                or end user, or for the same end use, shall immediately 
                cease to be in effect.
            (3) Limitations on reimposition.--Controls which have 
        ceased to be in effect under subsection (a)(3), and which have 
        not been extended under subsection (g), may not be reimposed by 
        the President under subsection (a) for a period of 6 months 
        beginning on the date on which the original controls expire.
    (g) Extension of Emergency Controls.--
            (1) Report.--If the President decides to extend controls 
        imposed under subsection (a), which are due to expire under 
        subsection (a)(3), the President shall, not later than 60 
        calendar days before the expiration of such controls, transmit 
        to the Congress a report on the proposed extension, setting 
        forth the reasons for the proposed extension in detail and 
        specifying the period of time, which may not exceed 1 year, for 
        which the controls are proposed to be extended. In particular, 
        such report shall--
                    (A) contain determinations by the President--
                            (i) that the controls continue to be 
                        essential to the national security or foreign 
                        policy of the United States;
                            [(ii) that no other alternative means can 
                        achieve the national security or foreign policy 
                        objectives of the United States within a 
                        reasonable period of time, as described in 
                        subsection (a)(4)(B);
                            [(iii)] (ii) that the United States has 
                        demonstrated the ability to enforce all aspects 
                        of the controls effectively; and
                            [(iv)] (iii) that the effect of the 
                        controls on those factors described in 
                        subsection (a)(4)[(E)](D) has not exceeded the 
                        benefits to the foreign policy or national 
                        security interests of the United States;
                    (B) identify those commodities and technology to be 
                controlled, specify that they must be controlled in 
                order to achieve the intended purpose of the controls, 
                and describe the reasons for the selection of such 
                items;
                    (C) specify the reasons why negotiations required 
                under subsection (a)(5) or (c) failed to result in the 
                adoption of the controls under section 105, and the 
                prospects for the multilateral adoption of such 
                controls;
                    (D) specify the reasons why an embargo described in 
                paragraph (1) is not presently justified to achieve the 
                national security or foreign policy objectives of the 
                United States;
                    (E) include an assessment by the Secretary of the 
                economic consequences of the controls during the 
                preceding 4 months (in the case of the first extension 
                of the controls under this section) or during the 
                preceding 10 months (in the case of any subsequent 
                extension of the controls under this section), 
                including estimates of any lost United States exports 
                and jobs;
                    (F) include an assessment by the Secretary of State 
                of the objectives of the controls and the extent to 
                which the controls have attained those objectives 
                during the preceding 4 months (in the case of the first 
                extension of the controls under this section) or during 
                the preceding 10 months (in the case of any subsequent 
                extension of the controls under this section); and
                    (G) include an assessment by the Secretary of 
                Defense of the impact the controls have had on the 
                national security of the United States in the preceding 
                4 months (in the case of the first extension of the 
                controls under this section) or in the preceding 10 
                months (in the case of any subsequent extension of the 
                controls under this section).
            (2) Consideration of extension.--The controls shall remain 
        in effect unless the Congress, within 60 calendar days after 
        its receipt of the report under paragraph (1), enacts a joint 
        resolution pursuant to paragraph (3) disapproving the extension 
        of the controls. Any controls remaining in effect shall 
        continue for the period specified in the report or until 
        terminated by the President, whichever occurs first, but in no 
        case longer than 1 year after the date on which the controls 
        would otherwise expire under subsection (a)(3), unless the 
        Congress by law terminates the controls. If the Congress, 
        within 60 calendar days after the date of its receipt of such 
        report, enacts a joint resolution disapproving the extension of 
        such controls, then such controls shall cease to be effective 
        upon the expiration of that 60-day period.
            (3) Joint resolutions.--
                    (A) Definition.--For purposes of this paragraph, 
                the term ``joint resolution'' means only a joint 
                resolution the matter after the resolving clause of 
                which is as follows: ``That, pursuant to section 106(g) 
                of the Export Act of 1994, the President may not extend 
                emergency controls as specified in the report submitted 
                to the Congress on ____________________.'', with the 
                blank space being filled with the appropriate date.
                    (B) Introduction.--On the day on which a report is 
                submitted to the House of Representatives and the 
                Senate under paragraph (1), a joint resolution with 
                respect to the extension of controls specified in such 
                report shall be introduced (by request) in the House of 
                Representatives by the chairman of the Committee on 
                Foreign Affairs, for the chairman and the ranking 
                minority member of the Committee, or by Members of the 
                House designated by the chairman and ranking minority 
                member; and shall be introduced (by request) in the 
                Senate by the majority leader of the Senate, for the 
                majority leader and the minority leader of the Senate, 
                or by Members of the Senate designated by the majority 
                leader and the minority leader of the Senate. If either 
                House of Congress is not in session on the day on which 
                such a report is submitted, the joint resolution shall 
                be introduced in that House, as provided for in the 
                preceding sentence, on the first day thereafter on 
                which that House is in session.
                    (C) Discharge.--If the Committee of either House to 
                which a joint resolution has been referred has not 
                reported the joint resolution by the end of 30 calendar 
                days after its referral, the committee shall be 
                discharged from further consideration of the joint 
                resolution or of any other joint resolution introduced 
                with respect to the same matter.
                    (D) Consideration.--A joint resolution under this 
                paragraph shall be considered in the Senate in 
                accordance with the provisions of section 601(b)(4) of 
                the International Security Assistance and Arms Export 
                Control Act of 1976. For the purpose of expediting the 
                consideration and passage of joint resolutions reported 
                or discharged under this paragraph, it shall be in 
                order for the Committee on Rules of the House of 
                Representatives to present for consideration a 
                resolution of the House of Representatives providing 
                procedures for the immediate consideration of a joint 
                resolution under this paragraph which may be similar, 
                if applicable, to the procedures set forth in section 
                601(b)(4) of the International Security Assistance and 
                Arms Export Control Act of 1976.
                    (E) Duplicative resolutions.--In the case of a 
                joint resolution described in subparagraph (A), if, 
                before the passage by one House of a joint resolution 
                of that House, that House receives a resolution with 
                respect to the same matter from the other House, then--
                            (i) the procedure in that House shall be 
                        the same as if no joint resolution had been 
                        received from the other House; and
                            (ii) the vote on final passage shall be on 
                        the joint resolution of the other House.
            (4) Further extensions of controls.--If, upon the 
        expiration of the emergency controls extended under this 
        subsection, the President determines that a further extension 
        of emergency controls for an additional period of time of not 
        more than 1 year is necessary, paragraphs (1) through (3) shall 
        apply to such further extension.
            (5) Calculation of time periods.--For purposes of 
        calculating calendar days under this subsection, there shall be 
        excluded the days on which either House of Congress is not in 
        session because of an adjournment of more than 3 days to a day 
        certain or because of an adjournment of the Congress sine die.
    (h) Effect on Other Authority.--
            (1) Embargo authority.--Nothing in this section shall be 
        construed to limit the authority of the President to impose an 
        embargo described in subsection (f)(1) on exports to, and 
        imports from, a specific country under the International 
        Emergency Economic Powers Act, the Trading with the Enemy Act, 
        or other provision of law (other than this title). In any case 
        in which the President exercises any such authority to impose 
        an embargo, the requirements of this section shall not apply 
        for so long as such embargo is in effect.
            (2) Effect on existing embargoes.--(A) Nothing in this 
        section affects the authorities conferred upon the President by 
        section 5(b) of the Trading with the Enemy Act, which were 
        being exercised with respect to a country on July 1, 1977, as a 
        result of a national emergency declared by the President before 
        that date, and are being exercised on the date of the enactment 
        of this Act.
            (B) Nothing in this section affects the authorities 
        conferred upon the President by the International Economic 
        Powers Act or other provision of law (other than the Export 
        Administration Act of 1979), which were being exercised with 
        respect to a country before the date of the enactment of this 
        Act as a result of a national emergency declared by the 
        President before that date, and are being exercised with 
        respect to such country on such date of enactment.
    (i) Countries Supporting International Terrorism.--
            (1) Prohibition on exports.--(A) No export or reexport of 
        commodities or technology described in subparagraph (B) may be 
        made to any country the government of which the Secretary of 
        State has determined has repeatedly provided support for acts 
        of international terrorism.
            (B) The commodities or technology referred to in 
        subparagraph (A) are--
                    (i) any commodities or technology the export of 
                which is controlled under this title pursuant to the 
                Missile Technology Control Regime or the Australia 
                Group, or controlled under this title pursuant to 
                section 309(c) of the Nuclear Non-Proliferation Act of 
                1978,
                    (ii) any commodities or technology described in 
                section 105(a)(1)(B) the export of which is controlled 
                under section 105, and
                    (iii) any commodities or technology the export of 
                which could make a significant contribution to the 
                military potential of a country described in 
                subparagraph (A), including its military logistics 
                capability, or could enhance the ability of such 
                country to support acts of international terrorism,
        other than commodities or technology that the President 
        determines will be used only for humanitarian purposes. A 
        validated license shall be required for the export under this 
        paragraph of any such commodities or technology that will be 
        used only for humanitarian purposes.
            (C) Paragraphs (3)(A) and (4) of subsection (a) shall not 
        apply to exports prohibited or restricted under this 
        subsection.
            (D)(i) The Secretary shall review the list of items 
        described in subparagraph (B)(iii) at least annually. At the 
        conclusion of the review, the Secretary shall justify the 
        inclusion of each item on the list, remove items from the list, 
        change the specifications of items on the list, or add items to 
        the list, in order to ensure that the items on the list meet 
        the requirements of subparagraph (B)(iii).
            (ii) The procedures set forth in subparagraphs (B), (C), 
        and (E) of section 105(j) shall apply to reviews under clause 
        (i) of the list of items described in subparagraph (B)(iii) to 
        the same extent as such subparagraphs apply to reviews of the 
        security control list under section 105(j).
            (2) Notification of congress of licenses issued.--The 
        Secretary and the Secretary of State shall notify the Committee 
        on Foreign Affairs of the House of Representatives and the 
        Committee on Banking, Housing, and Urban Affairs and the 
        Committee on Foreign Relations of the Senate at least 30 days 
        before issuing any validated license under this title for 
        exports to a country the government of which the Secretary of 
        State has determined has repeatedly provided support for acts 
        of international terrorism.
            (3) Publication of determinations.--Each determination of 
        the Secretary of State under paragraph (1)(A), and each 
        determination under section 6(j)(1)(A) of the Export 
        Administration Act of 1979 in effect at the time this title 
        takes effect, shall be published in the Federal Register.
            (4) Rescission of determinations.--A determination made by 
        the Secretary of State under paragraph (1)(A) may not be 
        rescinded unless the President submits to the Speaker of the 
        House of Representatives and the chairman of the Committee on 
        Banking, Housing, and Urban Affairs and the chairman of the 
        Committee on Foreign Relations of the Senate--
                    (A) before the proposed rescission would take 
                effect, a report certifying that--
                            (i) there has been a fundamental change in 
                        the leadership and policies of the government 
                        of the country concerned;
                            (ii) that government is not supporting acts 
                        of international terrorism; and
                            (iii) that government has provided 
                        assurances that it will not support acts of 
                        international terrorism in the future; or
                    (B) at least 45 days before the proposed rescission 
                would take effect, a report justifying the rescission 
                and certifying that--
                            (i) the government concerned has not 
                        provided any support for international 
                        terrorism during the preceding 6-month period; 
                        and
                            (ii) the government concerned has provided 
                        assurances that it will not support acts of 
                        international terrorism in the future.
            (5) Waiver of prohibitions.--The President may waive the 
        prohibitions contained in paragraph (1)(A) with respect to a 
        specific transaction if--
                    (A) the President determines that the transaction 
                is essential to the national security interests of the 
                United States; and
                    (B) not less than 30 days prior to the proposed 
                transaction, the President--
                            (i) consults with the Committee on Foreign 
                        Affairs of the House of Representatives and the 
                        Committee on Banking, Housing, and Urban 
                        Affairs of the Senate regarding the proposed 
                        transaction; and
                            (ii) submits to the Speaker of the House of 
                        Representatives and the chairman of the 
                        Committee on Banking, Housing, and Urban 
                        Affairs of the Senate a report containing--
                                    (I) the name of any country 
                                involved in the proposed transaction, 
                                the identity of any recipient of the 
                                items to be provided pursuant to the 
                                proposed transaction, and the 
                                anticipated use of those items;
                                    (II) a description of the items 
                                involved in the proposed transaction 
                                (including their market value) and the 
                                actual sale price at each step in the 
                                transaction;
                                    (III) the reasons why the proposed 
                                transaction is essential to the 
                                national security interests of the 
                                United States and the justification for 
                                the proposed transaction;
                                    (IV) the date on which the proposed 
                                transaction is expected to occur; and
                                    (V) the name of every United States 
                                Government department, agency, or other 
                                entity involved in the proposed 
                                transaction, and every foreign 
                                government involved in the proposed 
                                transaction.
        To the extent possible, the information specified in clause 
        (ii) of subparagraph (B) shall be provided in unclassified 
        form, with any classified information provided in an addendum 
        to the report.
            (6) Multilateral regimes.--The Secretary of State shall 
        propose to COCOM, to the Australia Group, to the countries 
        participating in the Missile Technology Control Regime, and to 
        the Nuclear Suppliers Group, that each such group adopt those 
        controls that are imposed by this subsection on exports of 
        commodities or technology subject to control by such group. The 
        Secretary of State shall continue to make such proposals until 
        such export controls are so adopted.
            (7) Effect on other laws.--The provisions of this 
        subsection do not affect any other provision of law to the 
        extent such other provision imposes greater restrictions on 
        exports to any country the government of which the Secretary of 
        State has determined has repeatedly provided support for acts 
        of international terrorism than are imposed under this 
        subsection.
    (j) Crime Control Instruments.--
            (1) Validated license required.--Crime control and 
        detection instruments and equipment shall be approved for 
        export by the Secretary only pursuant to a validated export 
        license. Paragraphs (3)(A) and (4) of subsection (a) shall not 
        apply to the export controls imposed by this subsection.
            (2) Consultation with secretary of state.--
                    (A) Items on control list.--Any determination of 
                the Secretary of what commodities or technology shall 
                be included on the control index as a result of the 
                export restrictions imposed by this subsection shall be 
                made after consultation with the Secretary of State.
                    (B) Action on license application.--Any 
                determination of the Secretary to approve or deny an 
                export license application to export crime control or 
                detection instruments or equipment shall be made after 
                consultation with the Secretary of State.
            (3) Dispute resolution.--If the Secretary of State does not 
        agree with the Secretary with respect to any determination 
        under paragraph (2), the Secretary of State shall refer the 
        matter to the President for resolution.
            (4) Exceptions.--The provisions of this subsection shall 
        not apply with respect to exports to countries which are 
        members of the North Atlantic Treaty Organization or to Japan, 
        Australia, or New Zealand, or to such other countries as the 
        President shall designate consistent with the purposes of this 
        subsection and section 502B of the Foreign Assistance Act of 
        1961.
    (k) Spare Parts.--At the same time as the President imposes or 
expands export controls under this section, the President shall 
determine whether such export controls will apply to replacement parts 
or parts in commodities subject to such export controls.
    (l) Treatment of Certain Sensitive Items.--
            (1) Findings.--The Congress makes the following findings:
                    (A) The United States continues to play a 
                leadership role in controlling the export of sensitive 
                dual use items and munitions items to dangerous 
                countries.
                    (B) The importance of maintaining this leadership 
                and securing the adherence of friendly nations to 
                export restrictions similar to those of the United 
                States was demonstrated by the large number of dual use 
                and munitions items Iraq was able to secure from 
                Western exporters prior to Desert Storm.
                    (C) Besides Iraq, the United States has voiced its 
                concern about Libya, North Korea, Syria, Cuba, and Iran 
                acquiring dual use and munitions items from Western 
                sources, republics of the former Soviet Union, and the 
                Peoples' Republic of China.
                    (D) Since Desert Storm, the United States has 
                learned that a substantial number of sensitive items 
                Iraq received from Western nations were not sent 
                directly, but were reexported from third-party 
                destinations.
                    (E) The threat of third-party reexports of 
                sensitive exports could be aggravated by proposals to 
                send dual use items to friendly nations ``license-
                free'' or under ``substitute'' licensing schemes that 
                would be less restrictive than individual validated 
                licensing, which requires prior United States consent 
                for any reexport.
                    (F) Eliminating or reducing individual validated 
                licensing requirements on sensitive dual use and 
                munitions exports to friendly countries increases the 
                risk that such items will be reexported to rogue 
                countries, including Iran, Iraq, Syria, Libya, Cuba, 
                and North Korea.
            (2) Policy statement.--It shall be the policy of the United 
        States to maintain its international leadership in restricting 
        the export of sensitive dual use items and of munitions to 
        rogue countries such as Iran, Iraq, Syria, Libya, Cuba, and 
        North Korea by--
                    (A) maintaining existing unilateral controls 
                whenever necessary to keep sensitive United States dual 
                use items and munitions from being exported to these 
                countries;
                    (B) encouraging all other countries producing such 
                items to restrict the export of these items in a 
                similar manner;
                    (C) working with the republics of the former Soviet 
                Union and of the members of COCOM to create a successor 
                to COCOM that would prohibit the export of the most 
                sensitive dual use items and munitions to rogue 
                countries such as Iran, Iraq, Syria, Libya, Cuba, and 
                North Korea; and
                    (D) not reducing existing levels of controls on the 
                export of sensitive dual use items and munitions 
                through the creation of license-free zones and 
                substitute licensing schemes.
            (3) Licensing requirement.--
                    (A) List of sensitive items.--Notwithstanding any 
                other provision of this title, the President, in 
                consultation with the Secretary and the Secretaries of 
                State, Defense, and Energy and the Director of the Arms 
                Control and Disarmament Agency, shall compile a list of 
                the most sensitive dual use and munitions items the 
                President wishes to deny to the countries set forth in 
                subparagraph (C). This list shall indicate whether the 
                item is being controlled unilaterally or with other 
                countries and shall be published in the Federal 
                Register not later than 60 days after the date of the 
                enactment of this Act.
                    (B) Individual validated license requirement.--The 
                President shall instruct the Secretary to require an 
                individual validated license for the export to any 
                destination of any item on the list compiled under 
                subparagraph (A).
                    (C) List of countries.--The countries referred to 
                in subparagraph (A) are Iran, Iraq, Syria, Libya, Cuba, 
                and North Korea.

SEC. 107. SHORT SUPPLY CONTROLS.

    (a) Authority.--
            (1) In general.--In order to carry out the policy set forth 
        in section 103(4), the President may prohibit or curtail the 
        export of any commodities subject to the jurisdiction of the 
        United States or exported by any person subject to the 
        jurisdiction of the United States. In curtailing exports to 
        carry out the policy set forth in section 103(4), the President 
        shall allocate a portion of export licenses on the basis of 
        factors other than a prior history of exportation. Such factors 
        shall include the extent to which a country engages in 
        equitable trade practices with respect to United States 
        commodities and treats the United States equitably in times of 
        short supply.
            (2) Public participation.--Upon imposing quantitative 
        restrictions on exports of any commodities to carry out the 
        policy set forth in section 103(4), the Secretary shall include 
        in a notice published in the Federal Register with respect to 
        such restrictions an invitation to all interested parties to 
        submit written comments within 15 days after the date of 
        publication on the impact of such restrictions and the method 
        of licensing used to implement them.
            (3) License fees.--In imposing export controls under this 
        section, the President's authority shall include, but not be 
        limited to, the imposition of export license fees.
    (b) Monitoring.--
            (1) In general.--In order to carry out the policy set forth 
        in section 103(4), the Secretary shall monitor exports, and 
        contracts for exports, of any commodity when the volume of such 
        exports in relation to domestic supply contributes, or may 
        contribute, to an increase in domestic prices or a domestic 
        shortage, and such price increase or shortage has, or may have, 
        a serious adverse impact on the economy or any sector thereof. 
        Any such monitoring shall commence at a time adequate to assure 
        that the monitoring will result in a data base sufficient to 
        enable policies to be developed, in accordance with section 
        103(4), to mitigate a short supply situation or serious 
        inflationary price rise or, if export controls are needed, to 
        permit imposition of such controls in a timely manner. 
        Information which the Secretary requires to be furnished in 
        effecting such monitoring shall be confidential, except as 
        provided in paragraph (2).
            (2) Reports on monitoring.--The results of monitoring under 
        paragraph (1) shall, to the extent practicable, be aggregated 
        and included in weekly reports setting forth, with respect to 
        each item monitored, actual and anticipated exports, the 
        destination by country, and the domestic and worldwide price, 
        supply, and demand. Such reports may be made monthly if the 
        Secretary determines that there is insufficient information to 
        justify weekly reports.
            (3) Consultation with secretary of energy.--The Secretary 
        shall consult with the Secretary of Energy to determine whether 
        monitoring or export controls under this section are warranted 
        with respect to exports of facilities, machinery, or equipment 
        normally and principally used, or intended to be used, in the 
        production, conversion, or transportation of fuels and energy 
        (except nuclear energy), including, but not limited to--
                    (A) drilling rigs, platforms, and equipment;
                    (B) petroleum refineries, and natural gas 
                processing, liquefaction, and gasification plants;
                    (C) facilities for production of synthetic natural 
                gas or synthetic crude oil;
                    (D) oil and gas pipelines, pumping stations, and 
                associated equipment; and
                    (E) vessels for transporting oil, gas, coal, and 
                other fuels.
    (c) Petitions for Monitoring or Controls of Metallic Materials.--
            (1) In general.--(A) Any entity, including a trade 
        association, firm, or certified or recognized union or group of 
        workers, that is representative of an industry or a substantial 
        segment of an industry that processes metallic materials 
        capable of being recycled may transmit a written petition to 
        the Secretary requesting the monitoring of exports or the 
        imposition of export controls, or both, with respect to any 
        such material, in order to carry out the policy set forth in 
        section 103(4).
            (B) Each petition shall be in such form as the Secretary 
        shall prescribe and shall contain information in support of the 
        action requested. The petition shall include any information 
        reasonably available to the petitioner indicating that each of 
        the criteria set forth in paragraph (3)(A) is satisfied.
            (2) Publication of notice.--Within 15 days after receipt of 
        any petition described in paragraph (1), the Secretary shall 
        publish a notice in the Federal Register. The notice shall--
                    (A) include the name of the material that is the 
                subject to the petition;
                    (B) include the schedule B number of the material 
                as set forth in the Statistical Classification of 
                Domestic and Foreign Commodities Exported from the 
                United States;
                    (C) indicate whether the petition is requesting 
                that controls or monitoring, or both, be imposed with 
                respect to the exportation of such material; and
                    (D) provide that interested persons shall have a 
                period of 30 days beginning on the date on which the 
                notice is published to submit to the Secretary written 
                data, views, or arguments, with or without opportunity 
                for oral presentation, with respect to the matter 
                involved.
        At the request of the petitioner or any other entity described 
        in paragraph (1)(A) with respect to the material which is the 
        subject of the petition, or at the request of any entity 
        representative of producers or exporters of such material, the 
        Secretary shall conduct public hearings with respect to the 
        subject of the petition, in which case the 30-day period may be 
        extended to 45 days.
            (3) Determination of monitoring or controls.--(A) Within 45 
        days after the end of the 30- or 45-day period described in 
        paragraph (2), as the case may be, the Secretary shall 
        determine whether to impose monitoring or controls, or both, on 
        the export of the material that is the subject of the petition 
        in order to carry out the policy set forth in section 103(4). 
        In making such determination, the Secretary shall determine 
        whether--
                    (i) there has been a significant increase, in 
                relation to a specific period of time, in exports of 
                such material in relation to domestic supply and 
                demand;
                    (ii) there has been a significant increase in 
                domestic price of such material or a domestic shortage 
                of such material relative to demand;
                    (iii) exports of such material are as important as 
                any other cause of a domestic price increase or 
                shortage relative to demand found under clause (ii);
                    (iv) a domestic price increase or shortage relative 
                to demand found under clause (ii) has significantly 
                adversely affected or may significantly adversely 
                affect the national economy or any sector thereof, 
                including a domestic industry; and
                    (v) monitoring or controls, or both, are necessary 
                in order to carry out the policy set forth in section 
                103(4).
            (B) The Secretary shall publish in the Federal Register a 
        detailed statement of the reasons for the Secretary's 
        determination under subparagraph (A) of whether to impose 
        monitoring or controls, or both, including the findings of fact 
        in support of that determination.
            (4) Publication of regulations.--Within 15 days after 
        making a determination under paragraph (3) to impose monitoring 
        or controls on the export of a material, the Secretary shall 
        publish in the Federal Register proposed regulations with 
        respect to such monitoring or controls. Within 30 days after 
        the publication of such proposed regulations, and after 
        considering any public comments on the proposed regulations, 
        the Secretary shall publish and implement final regulations 
        with respect to such monitoring or controls.
            (5) Consolidation of petitions.--For purposes of publishing 
        notices in the Federal Register and scheduling public hearings 
        pursuant to this subsection, the Secretary may consolidate 
        petitions, and responses to such petitions, which involve the 
        same or related materials.
            (6) Subsequent petitions on same material.--If a petition 
        with respect to a particular material or group of materials has 
        been considered in accordance with all the procedures described 
        in this subsection, the Secretary may determine, in the absence 
        of significantly changed circumstances, that any other petition 
        with respect to the same material or group of materials which 
        is filed within 6 months after the consideration of the prior 
        petition has been completed does not merit complete 
        consideration under this subsection.
            (7) Precedence of procedures over other reviews.--The 
        procedures and time limits set forth in this subsection with 
        respect to a petition filed under this subsection shall take 
        precedence over any review undertaken at the initiative of the 
        Secretary with respect to the same subject as that of the 
        petition.
            (8) Temporary controls.--The Secretary may impose 
        monitoring or controls, on a temporary basis, on the export of 
        a metallic material after a petition is filed under paragraph 
        (1)(A) with respect to that material but before the Secretary 
        makes a determination under paragraph (3) with respect to that 
        material only if--
                    (A) the failure to take such temporary actions 
                would result in irreparable harm to the entity filing 
                the petition, or to the national economy or segment 
                thereof, including a domestic industry, and
                    (B) the Secretary considers such action to be 
                necessary to carry out the policy set forth in section 
                103(4).
            (9) Other authority not affected.--The authority under this 
        subsection shall not be construed to affect the authority of 
        the Secretary under any other provision of this title, except 
        that if the Secretary determines, on the Secretary's own 
        initiative, to impose monitoring or controls, or both, on the 
        export of metallic materials capable of being recycled, under 
        the authority of this section, the Secretary shall publish the 
        reasons for such action in accordance with paragraph (3)(A) and 
        (B).
            (10) Submission and consideration of additional 
        information.--Nothing contained in this subsection shall be 
        construed to preclude submission on a confidential basis to the 
        Secretary of information relevant to a decision to impose or 
        remove monitoring or controls under the authority of this 
        title, or to preclude consideration of such information by the 
        Secretary in reaching decisions required under this subsection. 
        The provisions of this paragraph shall not be construed to 
        affect the applicability of section 552(b) of title 5, United 
        States Code.
    (d) Domestically Produced Crude Oil.--
            (1) Prohibition on exports.--Notwithstanding any other 
        provision of this title 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 section 203 of the Trans-
        Alaska Pipeline Authorization Act (43 U.S.C. 1652) may, subject 
        to paragraph (2), be exported from the United States, except 
        any such crude oil which--
                    (A) is exported to an adjacent foreign country to 
                be refined and consumed therein in an exchange that--
                            (i) is for the same quantity of crude oil 
                        being exported from that country to the United 
                        States; and
                            (ii) results through convenience or 
                        increased efficiency of transportation in lower 
                        prices for consumers of petroleum products in 
                        the United States as described in paragraph 
                        (2)(A)(ii);
                    (B) is temporarily exported for convenience or 
                increased efficiency of transportation across parts of 
                an adjacent foreign country and 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 addition to exports under 
                subparagraphs (A) and (B), except that any ocean 
                transportation of such oil shall be by vessels 
                documented under section 12106 of title 46, United 
                States Code.
            (2) Exceptions.--Crude oil subject to the prohibition 
        contained in paragraph (1) may be exported only if--
                    (A) the President so recommends to the Congress 
                after making and publishing express findings that 
                exports of such crude oil, including exchanges--
                            (i) will not diminish the total quantity or 
                        quality of petroleum refined within, stored 
                        within, or legally committed to be transported 
                        to and sold within the United States;
                            (ii) will, within 3 months following the 
                        initiation of such exports or exchanges, result 
                        in--
                                    (I) acquisition costs to the 
                                refiners that purchase the imported 
                                crude oil being lower than the 
                                acquisition costs such refiners would 
                                have to pay for the domestically 
                                produced oil in the absence of such an 
                                export or 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 imported 
                                crude oil;
                            (iii) will be made only pursuant to 
                        contracts which may be terminated if the crude 
                        oil supplies of the United States are 
                        interrupted, threatened, or diminished;
                            (iv) are clearly necessary to protect the 
                        national interest; and
                            (v) are in accordance with the provisions 
                        of this title; and
                    (B) the President includes such findings in the 
                recommendation to the Congress and the Congress, within 
                60 days after receiving that recommendation, agrees to 
                a joint resolution which approves such exports on the 
                basis of those findings, and which is thereafter 
                enacted into law.
            (3) Exports under bilateral agreements.--Notwithstanding 
        any other provision of this section or any other provision of 
        law, including subsection (u) of section 28 of the Mineral 
        Leasing Act of 1920, the President may export oil to any 
        country pursuant to a bilateral international oil supply 
        agreement entered into by the United States with such country 
        before June 25, 1979, or to any country pursuant to the 
        International Emergency Oil Sharing Plan of the International 
        Energy Agency.
    (e) Refined Petroleum Products.--
            (1) Export licenses.--In any case in which the President 
        determines that it is necessary to impose export controls on 
        refined petroleum products in order to carry out the policy set 
        forth in section 103(4), the President shall notify the 
        Congress of that determination. The President shall also notify 
        the Congress if and when the President determines that such 
        export controls are no longer necessary. During any period in 
        which a determination that such export controls are necessary 
        is in effect, no refined petroleum product may be exported 
        except pursuant to an export license specifically authorizing 
        such export.
            (2) Notification to congress and layover.--(A) Not later 
        than 5 days after an application for a license to export any 
        refined petroleum product is received, the Secretary shall 
        notify the Congress of such application, together with the name 
        of the exporter, the destination of the proposed export, and 
        the amount and price of the proposed export. Such notification 
        shall be made to the chairman of the Committee on Foreign 
        Affairs of the House of Representatives and the chairman of the 
        Committee on Banking, Housing, and Urban Affairs of the Senate.
            (B) The Secretary may not grant such license during the 30-
        day period beginning on the date on which notification to the 
        Congress under paragraph (1) is received, unless the President 
        certifies in writing to the Speaker of the House of 
        Representatives and the President pro tempore of the Senate 
        that the proposed export is vital to the national interest and 
        that a delay in issuing the license would adversely affect that 
        interest.
            (3) Exception.--This subsection shall not apply to--
                    (A) any export license application for exports to a 
                country with respect to which historical export quotas 
                established by the Secretary on the basis of past 
                trading relationships apply; or
                    (B) any license application for exports to a 
                country if exports under the license would not result 
                in the export from the United States of more than 
                250,000 barrels of refined petroleum products to such 
                country in any fiscal year.
            (4) Definition.--For purposes of this subsection, the term 
        ``refined petroleum product'' means gasoline, kerosene, 
        distillates, propane or butane gas, diesel fuel, and residual 
        fuel oil, that is refined within the United States or entered 
        for consumption within the United States.
            (5) Extension of license application processing time.--The 
        Secretary may extend any time period prescribed in section 109 
        to the extent necessary to take into account delays in action 
        by the Secretary on a license application on account of the 
        provisions of this subsection.
    (f) Certain Petroleum Products.--Petroleum products refined in 
United States foreign trade zones, or in the United States Territory of 
Guam, from foreign crude oil shall be excluded from any quantitative 
restrictions imposed under this section, except that, if the Secretary 
finds that a product is in short supply, the Secretary may issue such 
regulations as may be necessary to limit exports.
    (g) Agricultural Commodities.--
            (1) Approval of controls by secretary of agriculture.--The 
        authority conferred by this section shall not be exercised with 
        respect to any agricultural commodity, including fats and oils 
        or animal hides or skins, without the approval of the Secretary 
        of Agriculture. The Secretary of Agriculture shall not approve 
        the exercise of such authority with respect to any such 
        commodity during any period for which the supply of such 
        commodity is determined by the Secretary of Agriculture to be 
        in excess of the requirements of the domestic economy, except 
        to the extent the President determines that the controls on 
        such agricultural commodities are also imposed under section 
        106. The Secretary of Agriculture shall, by exercising the 
        authority which the Secretary of Agriculture has under other 
        applicable provisions of law, collect data with respect to 
        export sales of animal hides and skins.
            (2) Protection of stored commodities from future 
        controls.--Upon approval of the Secretary, in consultation with 
        the Secretary of 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 103(4) subsequent to 
        such approval. The Secretary may not grant such approval unless 
        the Secretary receives adequate assurance and, in conjunction 
        with the Secretary of Agriculture, finds--
                    (A) that such commodities will eventually be 
                exported,
                    (B) that neither the sale nor export thereof will 
                result in an excessive drain of scarce material and 
                have a serious domestic inflationary impact,
                    (C) that storage of such commodities in the United 
                States will not unduly limit the space available for 
                storage of domestically owned commodities, and
                    (D) that the purpose of such storage is to 
                establish a reserve of such commodities for later use, 
                not including resale to or use by another country.
        The Secretary may issue such regulations as may be necessary to 
        carry out this paragraph.
            (3) Procedures for imposing controls.--(A) If the President 
        imposes export controls on any agricultural commodity under 
        section 106 (including section 106(i)) or this section, the 
        President shall immediately transmit a report on such action to 
        the Congress, setting forth the reasons for the controls in 
        detail and specifying the period of time, which may not exceed 
        1 year, that the controls are proposed to be in effect. If the 
        Congress, within 60 days after the date of the receipt of the 
        report, adopts a joint resolution pursuant to paragraph (4) 
        approving the imposition of the export controls, then such 
        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 
        effective upon the expiration of that 60-day period.
            (B) The provisions of subparagraph (A) and paragraph (4) 
        shall not apply to export controls--
                    (i) which are extended under this title if the 
                controls, when imposed, were approved by the Congress 
                under subparagraph (A) and paragraph (4); or
                    (ii) which are imposed with respect to a country as 
                part of the prohibition or curtailment of all exports 
                to that country.
            (4) Expedited procedures.--(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 107(g)(3) of the Export Act 
        of 1994, the President may impose export controls 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 with respect to the export controls specified in 
        such report shall be introduced (by request) in the House by 
        the chairman of the Committee on Foreign Affairs, for the 
        chairman and the ranking minority member of the Committee, or 
        by Members of the House designated by the chairman and ranking 
        minority member; and shall be introduced (by request) in the 
        Senate by the majority leader of the Senate, for the chairman 
        and the minority leader of the Senate, or by Members of the 
        Senate designated by the majority leader and minority leader 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) 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 further consideration of the 
        resolution or of any other joint resolution introduced with 
        respect to the same matter.
            (D) A joint resolution under this paragraph shall be 
        considered in the Senate in accordance with the provisions of 
        section 601(b)(4) of the International Security Assistance and 
        Arms Export Control Act of 1976. For the purpose of expediting 
        the consideration and passage of joint resolutions reported or 
        discharged pursuant to the provisions of this paragraph, it 
        shall be in order for the Committee on Rules of the House of 
        Representatives to present for consideration a resolution of 
        the House of Representatives providing procedures for the 
        immediate consideration of a joint resolution under this 
        paragraph which may be similar, if applicable, to the procedure 
        set forth in section 601(b)(4) of the International Security 
        Assistance and Arms Export Control Act of 1976.
            (E) In the case of a joint resolution described in 
        subparagraph (A), if, before the passage by one House of a 
        joint resolution of that House, that House receives a 
        resolution with respect to the same matter from the other 
        House, then--
                    (i) the procedure in that House shall be the same 
                as if no joint resolution has been received from the 
                other House; but
                    (ii) the vote on final passage shall be on the 
                joint resolution of the other House.
            (5) Computation of time periods.--In the computation of the 
        period of 60 days referred to in paragraph (3)(A) and the 
        period of 30 days referred to in paragraph (4)(C), there shall 
        be excluded the days on which either House of Congress is not 
        in session because of an adjournment of more than 3 days to a 
        day certain or because of an adjournment of the Congress sine 
        die.
    (h) Barter Agreements.--
            (1) Exemption from controls.--The exportation pursuant to a 
        barter agreement of any commodities which may lawfully be 
        exported from the United States, for any commodities which may 
        lawfully be imported into the United States, may be exempted, 
        in accordance with paragraph (2), from any quantitative 
        limitation on exports (other than any reporting requirement) 
        imposed to carry out the policy set forth in section 103(4).
            (2) Criteria for exemption.--The Secretary shall grant an 
        exemption under paragraph (1) if the Secretary finds, after 
        consultation with the 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 
                        commodities to be exported pursuant to the 
                        barter agreement will not be required to 
                        satisfy the average amount of such commodities 
                        estimated to be required annually by the 
                        domestic economy and will be surplus thereto; 
                        and
                            (ii) the average annual quantity of the 
                        commodities to be imported will be less than 
                        the average amount of such commodities 
                        estimated to be required annually to supplement 
                        domestic production; and
                    (B) the parties to such barter agreement have 
                demonstrated adequately that they intend, and have the 
                capacity, to perform such barter agreement.
            (3) Definition.--For purposes of this subsection, the term 
        ``barter agreement'' means any agreement which is made for the 
        exchange, without monetary consideration, of any commodities 
        produced in the United States for any commodities produced 
        outside of the United States.
            (4) Applicability.--This subsection shall apply only with 
        respect to barter agreements entered into after September 30, 
        1979.
    (i) Unprocessed Red Cedar.--
            (1) Prohibition.--No unprocessed western red cedar (Thuja 
        plicata) logs harvested from State or Federal lands may be 
        exported from the United States.
            (2) Red cedar not an agricultural commodity.--Unprocessed 
        western red cedar logs shall not be considered to be an 
        agricultural commodity for purposes of subsection (g).
            (3) Definition.--As used in this subsection, the term 
        ``unprocessed western red cedar'' means red cedar timber which 
        has not been processed into--
                    (A) lumber of American Lumber Standards 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 intended to be 
                further processed; or
                    (E) shakes and shingles.
    (j) Effect of Controls on Existing Contracts.--
            (1) Western red cedar.--The export restrictions contained 
        in subsection (i) and any export controls imposed under this 
        section shall not affect--
                    (A) any contract to harvest unprocessed western red 
                cedar from State lands which was entered into before 
                October 1, 1979, and the performance of which would 
                make the red cedar available for export; or
                    (B) any contract to harvest unprocessed red cedar 
                which was entered into after September 30, 1979, and 
                before October 1, 1982, and the performance of which 
                would make the red cedar available for export, to the 
                extent such exports were permitted under section 7(i) 
                of the Export Administration Act of 1979.
            (2) Other commodities.--Any export controls imposed under 
        this section on any agricultural commodity (including fats, 
        oils, and animal hides and skins), or on any forest product or 
        fishery product, shall not affect any contract to export 
        entered into before the date on which such controls are 
        imposed. For purposes of this paragraph, the term ``contract to 
        export'' includes, but is not limited to, an export sales 
        agreement and an agreement to invest in an enterprise which 
        involves the export of commodities or technology.
    (k) Oil Exports for Use by United States Military Facilities.--For 
purposes of subsection (d), and for purposes of any export controls 
imposed under this title, shipments of crude oil, refined petroleum 
products, or partially refined petroleum products from the United 
States for use by the Department of Defense or United States-supported 
installations or facilities shall not be considered to be exports.

SEC. 108. FOREIGN BOYCOTTS.

    (a) Prohibitions and Exceptions.--
            (1) Prohibitions.--In order to carry out the policies set 
        forth in section 103(10), the President shall issue regulations 
        prohibiting any United States person, with respect to that 
        person's activities in the interstate or foreign commerce of 
        the United States, from taking or knowingly agreeing to take 
        any of the following actions with intent to comply with, 
        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 person to 
                refuse, to do business with or in the boycotted 
                country, with any business concern organized 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 request from or on behalf of the boycotting 
                country. The mere absence of a business relationship 
                with or in the boycotted country with any business 
                concern organized under the laws of the boycotted 
                country, with any national or resident of the boycotted 
                country, or with any other person, does not indicate 
                the existence of the intent required to establish a 
                violation of regulations issued to carry out this 
                subparagraph.
                    (B) Refusing, or requiring any other person to 
                refuse, to employ or otherwise discriminating against 
                any United States person on the basis of race, 
                religion, sex, or national origin of that person or of 
                any owner, officer, director, or employee of such 
                person.
                    (C) Furnishing information with respect to the 
                race, religion, sex, or national origin of any 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 relationship by way of sale, 
                purchase, legal or commercial 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 
                country, with any national or resident of the boycotted 
                country, or with any other person that is known or 
                believed to be restricted from having any business 
                relationship with or in the boycotted country. Nothing 
                in this paragraph shall prohibit the furnishing of 
                normal business information in a commercial context as 
                defined by the Secretary.
                    (E) Furnishing information about whether any person 
                is a member of, has made a contribution to, or is 
                otherwise associated with or involved in the activities 
                of any charitable or fraternal organization which 
                supports the boycotted country.
                    (F) Paying, honoring, confirming, or otherwise 
                implementing a letter of credit which contains 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 application of this paragraph, be 
                obligated to pay or otherwise honor or implement such 
                letter of credit.
            (2) Exceptions.--Regulations issued pursuant to paragraph 
        (1) shall provide exceptions for--
                    (A) complying or agreeing to comply with 
                requirements--
                            (i) prohibiting the import of commodities 
                        or services from the boycotted country or 
                        commodities produced or services provided by 
                        any business concern organized under the laws 
                        of the boycotted country or by nationals or 
                        residents of the boycotted country; or
                            (ii) prohibiting the shipment of 
                        commodities 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;
                    (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 information 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 precautionary 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, insurers, suppliers of 
                services to be performed within the boycotting country, 
                or specific commodities 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 relating to 
                shipments or transshipment of exports to the boycotted 
                country, to any business concern of or organized under 
                the laws of the boycotted country, or to any national 
                or resident of the boycotted country;
                    (E) compliance by an individual or agreement by an 
                individual to comply with the immigration 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 
                employment of such individual within the boycotting 
                country; and
                    (F) compliance by a United States person resident 
                in a foreign country or agreement by such person to 
                comply with the laws of the country with respect to 
                such person's activities exclusively therein, and such 
                regulations may contain exceptions for such resident 
                complying with the laws or regulations of the foreign 
                country governing imports into such country of 
                trademarked, trade named, or similarly specifically 
                identifiable products, or components of products for 
                such person's own use, including the performance of 
                contractual services within that country, as may be 
                defined by such regulations.
            (3) Limitation on exceptions.--Regulations issued pursuant 
        to paragraphs (2)(C) and (2)(F) shall not provide exceptions 
        from paragraphs (1)(B) and (1)(C).
            (4) Antitrust and civil rights laws not affected.--Nothing 
        in the subsection may be construed to supersede or limit the 
        operation of the antitrust or civil rights laws of the United 
        States.
            (5) Evasion.--This section shall apply to any transaction 
        or activity undertaken, by or through a United States person or 
        any other person, with intent to evade the provisions of this 
        section as implemented by the regulations issued pursuant to 
        this subsection, and such regulations shall expressly provide 
        that the exceptions set forth in paragraph (2) shall not permit 
        activities or agreements (expressed or implied by a course of 
        conduct, including a pattern of responses) otherwise 
        prohibited, which are not within the intent of such exceptions.
    (b) Emergency Controls.--
            (1) Regulations.--In addition to the regulations issued 
        pursuant to subsection (a), regulations issued under section 
        106 shall implement the policies set forth in section 103(10).
            (2) Reports by united states persons.--Such regulations 
        shall require that any United States person receiving a request 
        for the furnishing of information, the entering into or 
        implementing of agreements, or the taking of any other action 
        referred to in section 103(10) shall report that fact to the 
        Secretary, together with such other information concerning such 
        request as the Secretary may require, for such action as the 
        Secretary considers appropriate for carrying out the policies 
        of that section. Such person shall also report to the Secretary 
        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 
        quantity, description, and value of any commodities or 
        technology 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 
        competitive disadvantage. The Secretary shall periodically 
        transmit summaries of the information contained in such reports 
        to the Secretary of State for such action as the Secretary of 
        State, in consultation with the Secretary, considers 
        appropriate for carrying out the policies set forth in section 
        103(10).
    (c) Preemption.--The provisions of this section and the regulations 
issued under this section shall preempt any law, rule, or regulation 
which--
            (1) is a law, rule, or regulation of any of the several 
        States or the District of Columbia, or any of the territories 
        or possessions of the United States, or of any governmental 
        subdivision thereof; and
            (2) pertains to participation in, compliance with, 
        implementation of, or the furnishing of information regarding 
        restrictive trade practices or boycotts fostered or imposed by 
        foreign countries against other countries.

SEC. 109. PROCEDURES FOR PROCESSING EXPORT LICENSE APPLICATIONS; OTHER 
              INQUIRIES.

    (a) Primary Responsibility of the Secretary.--
            (1) In general.--All export license applications required 
        under this title shall be submitted by the applicant to the 
        Secretary. All determinations with respect to any such 
        application shall be made by the Secretary, subject to the 
        procedures provided in this section.
            (2) Role of secretaries of defense and energy.--(A) 
        Notwithstanding any other provision of this section, the 
        Secretaries of Defense and Energy are authorized to review any 
        proposed export of commodities or technology that is controlled 
        under section 105(a)(1) or controlled for national security 
        purposes under section 106. Whenever--
                    (i) the Secretary of Defense or the Secretary of 
                Energy determines that the export of such commodities 
                or technology will directly and significantly enable a 
                country or end user to acquire the capability to 
                develop, produce, stockpile, use, or deliver weapons of 
                mass destruction, or
                    (ii) the Secretary of Defense determines that the 
                export of such commodities or technology will directly 
                and significantly contribute to the military capability 
                of a country so as to prove detrimental to the national 
                security of the United States or its allies,
        the Secretary of Defense or the Secretary of Energy (as the 
        case may be) shall recommend to the President that such export 
        be disapproved.
            (B)(i) Notwithstanding any other provision of this section, 
        the Secretary of Defense and the Secretary of Energy shall 
        determine, in consultation with the Secretary, and confirm in 
        writing the types and categories of transactions which should 
        be reviewed by the Secretary of Defense or the Secretary of 
        Energy in order to make a determination referred to in 
        subparagraph (A). Whenever a license for export or other 
        authority within such type or category is received by the 
        Secretary, the Secretary shall notify the Secretary of Defense 
        or the Secretary of Energy (as the case may be) of such 
        request, and the Secretary may not issue any license or other 
        authority pursuant to such request until the Secretary is 
        notified by the Secretary of Defense or Energy under subclause 
        (II) or (III) or notified by the President under clause (ii). 
        The Secretary of Defense or the Secretary of Energy (as the 
        case may be) shall carefully consider any notification 
        submitted by the Secretary pursuant to this paragraph and, not 
        later than 30 days after notification of the request, shall--
                    (I) make a recommendation to the President referred 
                to in subparagraph (A);
                    (II) notify the Secretary that he or she would 
                recommend approval subject to specified conditions; or
                    (III) recommend to the Secretary that the export of 
                the commodities or technology be approved.
            (ii) Whenever the Secretary of Defense or the Secretary of 
        Energy makes a recommendation to the President under 
        subparagraph (A), the Secretary shall also submit his or her 
        recommendation to the President on the request to export if the 
        Secretary differs with the Secretary of Defense or the 
        Secretary of Energy. The President shall notify the Secretary 
        of his decision on the matter before the end of the 50-day 
        period set forth in subsection (c). If the President notifies 
        the Secretary, after receiving a recommendation from the 
        Secretary of Defense or the Secretary of Energy, that the 
        President disapproves such export, no license or other 
        authority may be issued for the export to such country of the 
        commodities or technology involved.
            (iii) If the Secretary of Defense or the Secretary of 
        Energy fails to make a recommendation or notification under 
        this paragraph within the 30-day period specified in clause 
        (i), the Secretary shall approve or deny the request for a 
        license or other authority to export without such 
        recommendation or notification.
            [(2)] (3) Regulations.--In regulations that carry out 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 extent of any multilateral 
        review of a given license application.
            [(3)] (4) Calculation of time periods.--In calculating the 
        processing times set forth in this section, the Secretary shall 
        use calendar days, except that if the final day for a required 
        action falls on a weekend or holiday, that action shall be 
        taken no later than the following business day.
            [(4)] (5) Consideration of reliability of parties.--In 
        reviewing applications for validated export licenses, the 
        Secretary may in each case consider the reliability of the 
        parties to the proposed export. In making such an evaluation, 
        the Secretary may consider all sources of information, 
        including intelligence information. The consideration of 
        intelligence information in connection with the evaluation of 
        the reliability of parties shall not authorize the direct or 
        indirect disclosure of classified information or sources and 
        methods of gathering classified information.
    (b) Action by Other Departments and Agencies.--
            (1) Referrals.--(A) At the direction of the President, the 
        Secretary shall refer appropriate license applications required 
        under section 105 or 106 to appropriate departments and 
        agencies of the Government to make recommendations and provide 
        information to the Secretary on such applications.
            (B) The President shall restrict referrals of license 
        applications to Government departments and agencies that 
        possess particular expertise and information that is relevant 
        to the licensing process and is not possessed by the Secretary.
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            (2) Organization of reviewing agencies.--Departments and 
        agencies reviewing license applications shall organize their 
        resources and units to plan for the prompt and expeditious 
        internal dissemination of export license applications, if 
        necessary, so as to avoid delays in responding to the 
        Secretary's request for information and recommendations.
            (3) Requests for additional information.--Within 5 days 
        after an export license application is referred to a department 
        or agency under this subsection, the agency or department shall 
        specify to the Secretary all information that is not in the 
        application that would be required to respond to the referral 
        of the application, and the Secretary shall, pursuant to 
        subsection (d)(1)(C), request such information from the 
        applicant. The time that may elapse between the date the 
        information is requested from the applicant and the date the 
        information is received by the Secretary shall not be included 
        in calculating the time periods prescribed in this section.
    (c) Action By The Secretary.--Subject to subsection (d)(4), [30 
days] 50 days after the date of formal filing with the Secretary of an 
export license application, a license for the transaction specified in 
the application shall become valid and effective and the commodities or 
technology involved are authorized for export or reexport pursuant to 
such license, unless--
            (1) the application has been otherwise approved by the 
        Secretary, in which case it shall be valid and effective 
        according to the terms of the approval; or
            (2) the application has been denied by the Secretary under 
        this section and the applicant has been so informed.
    (d) Procedures for Processing Export License Applications.--
            (1) Initial screening.--Not more than 10 days after the 
        date on which any export license application is submitted to 
        the Secretary, the Secretary shall--
                    (A) send the applicant an acknowledgment of the 
                receipt of the application and the date of the receipt;
                    (B) submit to the applicant a written description 
                of the procedures required by this section, the 
                responsibilities of the Secretary with respect to the 
                application, and the rights of the applicant;
                    (C) on the basis of information the Secretary has, 
                including information provided to the Secretary under 
                subsection (b)(3), return the application without 
                action if the application is improperly completed or if 
                additional information is required, with sufficient 
                information to permit the application to be properly 
                resubmitted; and
                    (D) determine whether it is necessary to submit the 
                application to a multilateral review process pursuant 
                to an export control regime and, if so, inform the 
                applicant of such requirement.
            (2) Referral.--(A) If, pursuant to criteria established by 
        the President, the Secretary is to refer an export license 
        application to any other department or agency for a 
        recommendation under subsection (b)(1), the Secretary shall, 
        within 2 days after receiving the application, refer the 
        application concurrently to all such departments or agencies, 
        transmitting the application electronically whenever possible. 
        A department or agency reviewing an export license application 
        referred by the Secretary shall have [10 days] 30 days in which 
        to submit to the Secretary its recommendations on the 
        application. Any department or agency which does not submit its 
        recommendations within that [10-day period] 30-day period shall 
        be deemed by the Secretary to have no objection to the approval 
        of such application.
            (B) A recommendation that the Secretary deny a validated 
        license shall include a statement of reasons for the 
        recommendation that are consistent with the provisions of this 
        title, and shall cite both the statutory and the regulatory 
        basis for the recommendation.
            (3) Interagency committee.--An interagency committee may be 
        established by the President for the purpose of resolving 
        disputes among departments and agencies on export license 
        applications under this title. Such committee shall be chaired 
        by the Secretary. The procedures followed by such interagency 
        committee shall provide--
                    (A) deadlines for decisions within the interagency 
                committee consistent with the duty of the Secretary to 
                reach his or her final decision on an application 
                within [30 days] 50 days after the date of filing of 
                the license application;
                    (B) that a department or agency dissenting from the 
                position of the Secretary shall have the burden to 
                bring the issue in writing to the next level of review 
                provided within the interagency committee and may only 
                dissent on the basis of the criteria set forth in 
                section 105(c)(1)(D) or section 106(a)(4); and
                    (C) that a department or agency that fails to make 
                a timely escalation of a disputed matter shall be 
                deemed to have no objection to the decision of the 
                Secretary.
            (4) Actions by the secretary.--(A) When a referral of a 
        license application to other departments or agencies is not 
        required, the Secretary shall issue a license or notify the 
        applicant of the intent to deny within 10 days after receiving 
        the application.
            (B) If an application is to be denied because the export 
        would be made to a controlled end user, no referral to other 
        departments or agencies is required, and the applicant shall be 
        informed of the reason for the denial.
            (5) Action upon denial.--In cases in which the Secretary 
        has determined that a license application should be denied, the 
        applicant shall be informed in writing, not later than 3 days 
        after such determination is made, of--
                    (A) the determination;
                    (B) the statutory and regulatory basis for the 
                proposed denial;
                    (C) the reasons for such denial, with references to 
                the criteria set forth in section 105, 106, or 107 (as 
                the case may be);
                    (D) what, if any, modifications in, or restrictions 
                on, the commodities or technology for which the license 
                was sought would allow the export or reexport of the 
                commodities or technology to be compatible with 
                controls imposed under this title;
                    (E) which officers and employees of the Department 
                of Commerce who are familiar with the application will 
                be made reasonably available to the applicant for 
                considerations with regard to such modifications or 
                restrictions, if appropriate;
                    (F) to the extent consistent with the national 
                security and foreign policy of the United States, the 
                specific considerations which led to the determination 
                to deny the application; and
                    (G) the availability of appeal procedures.
        The Secretary shall allow the applicant not less than 30 days 
        to respond to the Secretary's determination before the license 
        application is finally denied.
    (e) Time Limit Extension.--If required for national security 
reasons, the President may increase the time periods set forth in 
subsections (a), (c), and (d) to not more than 2 times the number of 
days in each time period, for not more than 4 percent of the export 
license applications filed with the Secretary during any calendar year.
    [(e)] (f) Recordkeeping.--The Secretary shall make and keep records 
of all advice and recommendations given by Federal departments and 
agencies, and decisions made by the Department of Commerce, in 
connection with any export license application or revision of an export 
license application under this title, including the factual and 
analytical basis of the advice, recommendations, or decisions.
    [(f)] (g) Changes in Requirements for Applications.--Except as 
provided in subsection (d), in any case in which, after an export 
license application is submitted, the Secretary changes the 
requirements for such a license application, the Secretary may request 
appropriate additional information of the applicant, but the Secretary 
may not return the application to the applicant without action because 
it fails to meet the changed requirements.
    [(g)] (h) Appeals.--The Secretary shall establish appropriate 
procedures for any applicant to appeal to the Secretary the denial of 
an export license application under this title.
    [(h)] (i) Other Inquiries.--
            (1) Classification requests.--In any case in which the 
        Secretary receives a written request for the proper 
        classification of a commodity or technology on the control 
        index, the Secretary shall, not more than 10 working days after 
        receiving the request, inform the person making the request of 
        the proper classification.
            (2) Applicability of requirements.--In any case in which 
        the Secretary receives a written request for information about 
        the applicability of export license requirements under this 
        title to a proposed transaction or series of transactions, the 
        Secretary shall, not more than 30 days after receiving the 
        request, reply with that information to the person making the 
        request.
            (3) Publication of classification determinations.--The 
        Secretary shall, to the greatest extent practicable, taking 
        into account restrictions on the disclosure of classified or 
        confidential information, publish in the Federal Register 
        classification determinations made under paragraph (1).
    [(i)] (j) Reports on License Applications.--
            (1) Quarterly report.--Not later than 180 days after the 
        date of the enactment of this Act, and not later than the end 
        of each 3-month period thereafter, the Secretary shall submit 
        to the Committee on Foreign Affairs and the Committee on Armed 
        Services of the House of Representatives and to the Committee 
        on Banking, Housing, and Urban Affairs and the Committee on 
        Armed Services of the Senate a report listing all applications 
        for validated licenses under section 105 or 106 on which action 
        was completed during the preceding 3-month period [and which 
        required a period longer than the period permitted under 
        subsection (c) or (d)(4), as the case may be, before 
        notification on a decision to approve or deny the application 
        was sent to the applicant].
            (2) Information on license applications.--With regard to 
        each application, each listing shall identify--
                    (A) the application case number;
                    (B) the value of the commodities or technology to 
                which the application relates;
                    (C) the country of destination of the commodities 
                or technology;
                    (D) the date on which the application was received 
                by the Secretary;
                    (E) the date on which the Secretary approved or 
                denied the application; and
                    (F) the date on which the notification of approval 
                or denial of the application was sent to the applicant.
            [(3) Introduction to report.--With respect to an 
        application referred to any other department or agency which 
        did not submit or has not submitted its recommendations on the 
        application within the period permitted under subsection (d)(2) 
        to submit such recommendations, the listing shall also 
        include--
                    [(A) the office responsible for processing the 
                application and the officer responsible for the office; 
                and
                    [(B) the period of time that elapsed before the 
                recommendations were submitted or that has elapsed 
                since referral of the application, as the case may be.]

SEC. 110. VIOLATIONS.

    (a) Criminal Penalties.--
            (1) Violations by an individual.--Any individual who 
        knowingly violates or conspires to or attempts to violate any 
        provision of this title or any regulation, license, or order 
        issued under this title shall be fined not more than 5 times 
        the value of the exports involved or $500,000, whichever is 
        greater, or imprisoned not more than 10 years, or both.
            (2) Violations by a person other than an individual.--Any 
        person other than an individual who knowingly violates or 
        conspires to or attempts to violate any provision of this title 
        or any regulation, license, or order issued under this title 
        shall be fined not more than 10 times the value of the exports 
        involved or $1,000,000, whichever is greater.
    (b) Forfeiture of Property Interest and Proceeds.--
            (1) Forfeiture.--Any person who is convicted under 
        subsection (a)(1) or (2) shall, in addition to any other 
        penalty, forfeit to the United States--
                    (A) any of that person's interest in, security of, 
                claim against, or property or contractual rights of any 
                kind in the commodities or tangible items that were the 
                subject of the violation;
                    (B) any of that person's interest in, security of, 
                claim against, or property or contractual rights of any 
                kind in tangible property that was used in the export 
                or attempt to export that was the subject of the 
                violation; and
                    (C) any of that person's property constituting, or 
                derived from, any proceeds obtained directly or 
                indirectly as a result of the violation.
            (2) Procedures.--The procedures in any forfeiture under 
        this subsection, and the duties and authority of the courts of 
        the United States and the Attorney General with respect to any 
        forfeiture action under this subsection or with respect to any 
        property that may be subject to forfeiture under this 
        subsection, shall be governed by the provisions of section 1963 
        of title 18, United States Code.
    (c) Civil Penalties; Administrative Sanctions.--
            (1) Civil penalties.--The Secretary may impose a civil 
        penalty of not more than $250,000 for each violation of this 
        title or any regulation, license, or order issued under this 
        title, either in addition to or in lieu of any other liability 
        or penalty which may be imposed, except that the civil penalty 
        for each such violation of regulations issued under section 108 
        may not exceed $50,000.
            (2) Denial of export privileges.--The Secretary may deny 
        the export privileges of any person, including suspending or 
        revoking the authority of any person to export or receive 
        United States-origin commodities or technology, on account of 
        any violation of this title or any regulation, license, or 
        order issued under this title.
    (d) Payment of Civil Penalties.--The payment of any civil penalty 
imposed under subsection (c) may be made a condition, for a period not 
exceeding 1 year after the penalty has become due but has not been 
paid, to the granting, restoration, or continuing validity of any 
export license, permission, or privilege granted or to be granted to 
the person upon whom such penalty is imposed. In addition, the payment 
of any civil penalty imposed 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.
    (e) Refunds.--Any amounts realized from the forfeiture of any 
property interest or proceeds under subsection (b), and any amount paid 
in satisfaction of any civil penalty imposed under subsection (c) shall 
be covered into the Treasury as a miscellaneous receipt. The head of 
the department or agency concerned may, in his or her discretion, 
refund any such civil penalty imposed under subsection (c), within 2 
years after payment, on the ground of a material error of fact or law 
in the imposition of the penalty. Notwithstanding section 1346(a) of 
title 28, United States Code, no action for the refund of any such 
penalty may be maintained in any court.
    (f) Effect of Other Convictions.--
            (1) Denial of export privileges.--Any person convicted of a 
        violation of--
                    (A) this title or the Export Administration Act of 
                1979 (or any regulation, license, or order issued under 
                this title or that Act),
                    (B) any regulation, license, or order issued under 
                the International Emergency Economic Powers Act,
                    (C) section 793, 794, or 798 of title 18, United 
                States Code,
                    (D) section 371 or 1001 of title 18, United States 
                Code, if in connection with the export of commodities 
                or technology controlled under this title, or defense 
                articles or defense services controlled under the Arms 
                Export Control Act,
                    (E) section 4(b) of the Internal Security Act of 
                1950 (50 U.S.C. 783(b)), or
                    (F) section 38 of the Arms Export Control Act,
        may, at the discretion of the Secretary, be denied export 
        privileges under this title for a period of up to 10 years from 
        the date of the conviction. The Secretary may also revoke any 
        export license under this title in which such person had an 
        interest at the time of the conviction.
            (2) Related persons.--The Secretary may exercise the 
        authority under paragraph (1) with respect to any person 
        related, through affiliation, ownership, control, or position 
        of responsibility, to any person convicted of any violation of 
        a law set forth in paragraph (1), upon a showing of such 
        relationship with the convicted person, after providing notice 
        and opportunity for a hearing.
    (g) Statute of Limitations.--Any proceeding in which a civil 
penalty or other administrative sanction (other than a temporary denial 
order) is sought under subsection (c) may not be instituted more than 5 
years after the date of the alleged violation, except that, in any case 
in which a criminal indictment alleging a violation of this title is 
returned within the time limits prescribed by law for the institution 
of such action, the statute of limitations for bringing a proceeding to 
impose such a civil penalty or other administrative sanction under this 
title shall, upon the return of the criminal indictment, be tolled 
against all persons named as a defendant. The tolling of the statute of 
limitations shall continue for a period of 6 months from the date a 
conviction is entered or the indictment is dismissed.
    (h) Violations Defined by Regulation.--Nothing in this section 
shall limit the power of the Secretary to define by regulation 
violations under this title.
    (i) Other Authorities.--Nothing in subsection (c), (d), (f), or (g) 
limits--
            (1) the availability of other administrative or judicial 
        remedies with respect to violations of this title, or any 
        regulation, order, or license issued under this title;
            (2) the authority to compromise and settle administrative 
        proceedings brought with respect to any such violation; or
            (3) the authority to compromise, remit, or mitigate 
        seizures and forfeitures pursuant to section 1(b) of title VI 
        of the Act of June 15, 1917 (22 U.S.C. 401(b)).
    (j) Private right of action.--Any person--
            (1) against whom an act of discrimination described in 
        section 108(a)(1)(B) is committed, or
            (2) who, on account of a violation of the regulations 
        issued pursuant to section 108(a), loses an opportunity to 
        engage in a commercial venture pursuant to a contract, joint 
        venture, or other commercial transaction, including an 
        opportunity to bid or tender an offer for a contract,
may bring an action in an appropriate district court of the United 
States against the United States person committing the violation, for 
recovery of actual damages incurred on account of such act of 
discrimination or lost opportunity. In any such action the court may 
award punitive damages. An action may be brought under this subsection 
against a United States person whether or not the United States person 
has been determined under this section to have violated the regulations 
issued pursuant to section 108(a) on account of which the action is 
brought.

SEC. 111. CONTROLLING PROLIFERATION ACTIVITY.

    (a) Establishment of Proliferation Lists.--
            (1) Establishment of chemical and biological weapons 
        control list under this title.--
                    (A) In general.--The Secretary, [in consultation 
                with the Secretary of State, the Secretary of Defense, 
                and the heads of other appropriate departments and 
                agencies,] shall establish and maintain a list of 
                commodities and technology, which shall include those 
                commodities and technology controlled pursuant to 
                multilateral export control regimes such as the 
                Australia Group--
                            (i) that would directly and substantially 
                        assist a foreign government, group, entity, or 
                        project in acquiring the capability to develop, 
                        produce, stockpile, or deliver chemical or 
                        biological weapons; and
                            (ii) the licensing of which would be 
                        effective in barring the acquisition or 
                        enhancement of such capability.
                    (B) Role of other departments and agencies.--The 
                Secretary of Defense and the heads of other appropriate 
                departments and agencies shall identify goods and 
                technology for inclusion on the list referred to in 
                subparagraph (A). Those items which the Secretary and 
                the Secretary of Defense concur shall be included on 
                the list shall comprise the list. If the Secretary and 
                the Secretary of Defense are unable to concur on such 
                items, as determined by the Secretary, the Secretary of 
                Defense may, within 20 days after receiving 
                notification of the Secretary's determination, refer 
                the matter to the President for resolution. The 
                Secretary of Defense shall notify the Secretary of any 
                such referral. The President shall, not later than 20 
                days after such referral, notify the Secretary of his 
                determination with respect to the inclusion of such 
                items on the list. Failure of the Secretary of Defense 
                to notify the President or the Secretary, or failure of 
                the President to notify the Secretary, in accordance 
                with this paragraph, shall be deemed by the Secretary 
                to constitute concurrence in the implementation of the 
                actions proposed by the Secretary regarding the 
                inclusion of such items on the list.
                    [(B)] (C) Requirement for validated licenses.--
                Subject to the provisions of this title, the Secretary 
                shall require a validated license for any export of 
                commodities or technology on the list established under 
                subparagraph (A) to any country of concern.
                    [(C)] (D) Country of concern.--For purposes of 
                subparagraph (B), the term ``country of concern'' means 
                any country other than--
                            (i) a country with whose government the 
                        United States has entered into a bilateral or 
                        multilateral arrangement for the control of 
                        commodities or technology on the list 
                        established under subparagraph (A); and
                            (ii) such other countries as the Secretary 
                        of State, in consultation with the Secretary 
                        and the Secretary of Defense, shall designate 
                        consistent with the purposes of this section.
            (2) Establishment of missile technology control list under 
        this title.--
                    (A) The Secretary[, in consultation with the 
                Secretary of State, the Secretary of Defense, and the 
                heads of other appropriate departments and agencies]--
                            (i) shall establish and maintain a list of 
                        all dual use commodities and technology on the 
                        MTCR Annex; and
                            (ii) may include on that list any 
                        commodities or technology that would provide a 
                        direct and significant impact on the 
                        development of missile delivery systems.
                    (B) Role of other departments and agencies.--The 
                Secretary of Defense and the heads of other appropriate 
                departments and agencies shall identify goods and 
                technology for inclusion on the list referred to in 
                subparagraph (A). Those items which the Secretary and 
                the Secretary of Defense concur shall be included on 
                the list shall comprise the list. If the Secretary and 
                the Secretary of Defense are unable to concur on such 
                items, as determined by the Secretary, the Secretary of 
                Defense may, within 20 days after receiving 
                notification of the Secretary's determination, refer 
                the matter to the President for resolution. The 
                Secretary of Defense shall notify the Secretary of any 
                such referral. The President shall, not later than 20 
                days after such referral notify the Secretary of his 
                determination with respect to the inclusion of such 
                items on the list. Failure of the Secretary of Defense 
                to notify the President or the Secretary, or failure of 
                the President to notify the Secretary, in accordance 
                with this paragraph, shall be deemed by the Secretary 
                to constitute concurrence in the implementation of the 
                actions proposed by the Secretary regarding the 
                inclusion of such items on the list.
                    [(B)] (C) Requirement of individual validated 
                licenses.--Subject to the provisions of this title, the 
                Secretary shall require an individual validated license 
                for--
                            (i) any export of commodities or technology 
                        on the list established under subparagraph (A) 
                        to any country; and
                            (ii) any export of commodities or 
                        technology that the exporter knows is destined 
                        for a project or facility for the design, 
                        development, or manufacture of a missile in a 
                        country that is not an MTCR adherent.
                    [(C)] (D) Policy of denial of licenses.--(i) 
                Licenses under subparagraph (B) should in general be 
                denied if the ultimate consignee of the commodities or 
                technology is a facility in a country that is not an 
                MTCR adherent and the facility is designed to develop 
                or build missiles.
                    (ii) Licenses under subparagraph (B) shall be 
                denied if the ultimate consignee of the commodities or 
                technology is a facility in a country the government of 
                which has been determined under section 106(i)(1) to 
                have repeatedly provided support for acts of 
                international terrorism.
                    [(D)] (E) Definition.--For purposes of this 
                paragraph, the term ``MTCR adherent'' means a country 
                that participates in the MTCR or that, pursuant to an 
                international understanding to which the United States 
                is a party, controls MTCR equipment or technology in 
                accordance with the criteria and standards set forth in 
                the MTCR.
    (b) Establishment of Lists Under Arms Export Control Act.--
            (1) Chemical and biological weapons list.--Section 81 of 
        the Arms Export Control Act (22 U.S.C. 2798) is amended to read 
        as follows:

``SEC. 81. ESTABLISHMENT OF CHEMICAL AND BIOLOGICAL WEAPONS CONTROL 
              LIST

    ``(a) In General.--The Secretary of State, [in consultation with 
the Secretary of Defense, and the heads of other appropriate 
departments and agencies,] with the concurrence of the Secretary of 
Defense, shall establish and maintain, as part of the United States 
Munitions List, a list of items, which shall include those items 
controlled pursuant to multilateral export control regimes, such as the 
Australia Group--
            ``(1) that would directly and substantially assist a 
        foreign government, group, entity, or project in acquiring the 
        capability to develop, produce, stockpile, or deliver chemical 
        or biological weapons;
            ``(2) the licensing of which would be effective in barring 
        the acquisition or enhancement of such capability; and
            ``(3) the export of which is not subject to control under 
        section 111(a)(1) of the Export Act of 1994.
    ``(b) Requirement for Validated Licenses.--The Secretary of State 
shall require a validated license for any export of items on the list 
established under subsection (a).
    ``(c) Definitions.--For purposes of this section, the terms 
`multilateral export control regime' and `Australia Group' have the 
meanings given those terms in section 116 of the Export Act of 1994.''.
            (2) Missile technology control list.--Section 71 of the 
        Arms Export Control Act (22 U.S.C. 2797) is amended to read as 
        follows:

``SEC. 71. LICENSING.

    ``(a) Establishment of Missile Technology Control List.--The 
Secretary of State, [in consultation with the Secretary of Defense and 
the heads of other appropriate departments and agencies,] with the 
concurrence of the Secretary of Defense, shall establish and maintain a 
list of all items, which shall include those items listed on the MTCR 
Annex, that would provide a direct and significant impact on the 
development of missile delivery systems and the export of which is not 
subject to control under section 111(a)(2) of the Export Act of 1994.
    ``(b) Requirement of Validated Licenses.--The Secretary shall 
require a validated license for--
            ``(1) any export of items on the list established under 
        subsection (a) to any country; and
            ``(2) any export of items that the exporter knows is 
        destined for a project or facility for the design, development, 
        or manufacture of a missile in a country that is not an MTCR 
        adherent.
    ``(c) Policy of Denial of Licenses.--
            ``(1) Exports to other than mtcr adherents.--Licenses under 
        subsection (b) shall be denied if the ultimate consignee of the 
        items is a facility in a country that is not an MTCR adherent 
        and the facility is designed to develop or build missiles.
            ``(2) Exports to terrorist countries.--Licenses under 
        subsection (b) shall be denied if the ultimate consignee of the 
        items is a facility in a country the government of which has 
        been determined under section 106(i)(1) of the Export Act of 
        1994 to have repeatedly provided support for acts of 
        international terrorism.''.
    (c) Sanctions for Activities Supporting the Proliferation of 
Chemical and Biological Weapons and Missiles.--
            (1) Violations by united states persons.--(A) If the 
        President determines that a United States person, on or after 
        the date of the enactment of this Act, with requisite 
        knowledge--
                    (i) exports or transfers--
                            (I) any item on the list established under 
                        subsection (a)(1) or (a)(2), or
                            (II) any item on the list established under 
                        section 71(a) or 81(a) of the Arms Export 
                        Control Act,
                in violation of United States law,
                    (ii) conspires to or attempts to engage in such 
                export or transfer, or
                    (iii) facilitates such export or transfer by any 
                other person,
        then the President shall impose, for a period of 2 years, the 
        sanctions described in subparagraph (B) on the entities 
        described in paragraph (3).
            (B) The sanctions referred to in subparagraph (A) are the 
        following:
                    (i) All export licenses under this title for items 
                controlled under section 105, or for items controlled 
                under section 106 that meet the requirements of section 
                105(a)(1)(A) or (B), and all export licenses under the 
                Arms Export Control Act for items on the United States 
                Munitions List, shall be denied to the sanctioned 
                entity.
                    (ii) The United States Government shall not 
                procure, or enter into any contract for the procurement 
                of, any services, commodities, technology, or other 
                products from or produced by the sanctioned entity.
            (C) In the case of a determination made under subparagraph 
        (A), the President may pursue any penalty provided in section 
        38(c) of the Arms Export Control Act.
            (2) Violations by foreign persons.--(A) If the President 
        determines that a foreign person, on or after the date of the 
        enactment of this Act, with requisite knowledge contributed to 
        the efforts of any government, group, entity, or project to 
        use, design, develop, produce, stockpile, or otherwise acquire 
        chemical or biological weapons or missiles--
                    (i) through the export or transfer of--
                            (I) any item on the MTCR Annex, whether or 
                        not of United States origin, or
                            (II) any item on the list established under 
                        subsection (a)(1) of this section or section 
                        81(a) of the Arms Export Control Act, whether 
                        or not of United States origin,
                    (ii) by conspiring or attempting to engage in such 
                export or transfer or,
                    (iii) by facilitating any export or transfer 
                described in clause (i) by any other person,
        then the President shall impose, for a period of 2 years, the 
        sanctions described in subparagraph (B) on the entities 
        described in paragraph (3).
            (B) The sanctions referred to in subparagraph (A) are the 
        following:
                    (i) All export licenses under this title for items 
                controlled under section 105, or items controlled under 
                section 106 that meet the requirements of section 
                105(a)(1)(A) or (B), and all export licenses under the 
                Arms Export Control Act for items on the United States 
                Munitions List, shall be denied to the sanctioned 
                entity.
                    (ii) The United States Government shall not 
                procure, or enter into any contract for the procurement 
                of, any services, commodities, technology, or other 
                products from or produced by the sanctioned entity.
                    (iii) Imports of (all products) (products) from or 
                produced by the sanctioned entity shall be prohibited.
            (3) Entities against which sanctions are imposed.--The 
        President shall impose sanctions under paragraphs (1) and (2) 
        on--
                    (A) the person that committed the conduct that is 
                the subject of the determination giving rise to the 
                sanctions;
                    (B) any successor of a person or entity described 
                in subparagraph (A);
                    (C) any foreign person or United States person that 
                is a parent or subsidiary of a person or entity 
                described in subparagraph (A), if that parent or 
                subsidiary with requisite knowledge assisted in the 
                activities which are the basis of that determination; 
                and
                    (D) any foreign person or United States person that 
                is an affiliate of a person or entity described in 
                subparagraph (A), if that affiliate with requisite 
                knowledge assisted in the activities which were the 
                basis of that determination and if that affiliate is 
                controlled in fact by that person or entity.
        For purposes of this section, any person or entity described in 
        subparagraph (A), (B), (C), or (D) shall be referred to as a 
        ``sanctioned entity''.
            (4) Exemption of certain exports from sanctions.--The 
        requirement in paragraph (1)(B)(i) and (2)(B)(i) that licenses 
        to export items controlled under section 105 or 106 be denied 
        shall not apply to items which require individual validated 
        licenses solely by virtue of the imposition of controls under 
        the Enhanced Proliferation Control Initiative regulations set 
        forth in section 778.7(c) of title 15, Code of Federal 
        Regulations.
            (5) Exemption for mtcr adherents.--
                    (A) Exemption.--Paragraphs (1) and (2) do not apply 
                with respect to any export or transfer--
                            (i) that is authorized by the laws of an 
                        MTCR adherent, if such authorization is not 
                        obtained by misrepresentation or fraud; or
                            (ii) to an end user in a country that is an 
                        MTCR adherent.
                    (B) Definition.--For purposes of this paragraph, 
                the term ``MTCR adherent'' has the meaning given that 
                term in subsection (a)(2)(D).

            (6) Consultation with and actions by foreign government of 
        jurisdiction.--
                    (A) Consultations.--If the President makes a 
                determination described in paragraph (2) with respect 
                to a foreign person, the Congress urges the President 
                to initiate consultations immediately with the 
                government with primary jurisdiction over that foreign 
                person with respect to the imposition of sanctions 
                pursuant to this subsection.
                    (B) Actions by government of jurisdiction.--In 
                order to pursue such consultations with that 
                government, the President may delay imposition of 
                sanctions pursuant to this subsection for up to 90 
                days. Following these consultations, the President 
                shall impose sanctions unless the President determines 
                and certifies to the Congress that that government has 
                taken specific and effective actions, including 
                appropriate penalties, to terminate the involvement of 
                the foreign person in the activities described in 
                paragraph (2). The President may delay the imposition 
                of sanctions for up to an additional 90 days if the 
                President determines and certifies to the Congress that 
                that government is in the process of taking the actions 
                described in the preceding sentence.
                    (C) Report to congress.--Not later than 90 days 
                after making a determination under paragraph (2), the 
                President shall submit to the Committee on Foreign 
                Relations and the Committee on Governmental Affairs of 
                the Senate and the Committee on Foreign Affairs of the 
                House of Representatives a report on the status of 
                consultations with the appropriate government under 
                this paragraph, and the basis for any determination 
                under subparagraph (B) that such government has taken 
                specific and effective actions.
            (7) Effect of enforcement actions by regime adherents.--
                    (A) Exemption from sanctions.--Sanctions set forth 
                in paragraph (1) or (2) may not be imposed under this 
                subsection on a person with respect to acts described 
                in either such paragraph or, if such sanctions are in 
                effect against a person on account of such acts, such 
                sanctions shall be terminated, if the government of a 
                regime adherent other than the United States is taking 
                judicial or other enforcement action against that 
                person with respect to such acts, or that person has 
                been found by the government of a regime adherent to be 
                innocent of wrongdoing with respect to such acts.
                    (B) Regime adherent defined.--For purposes of 
                subparagraph (A), a ``regime adherent'' is a country 
                that is a member of a multilateral regime that controls 
                the export or transfer giving rise to the sanctions, or 
                that, pursuant to an international understanding to 
                which the United States is a party, controls the export 
                or transfer in accordance with the criteria and 
                standards set forth in the regime.
            (8) Requisite knowledge defined.--For purposes of this 
        subsection, the term ``requisite knowledge'' means situations 
        in which a person ``knows'', as ``knowing'' is defined in 
        section 104 of the Foreign Corrupt Practices Act of 1977 (15 
        U.S.C. 78dd-2).
            (9) Foreign person defined for certain exports.--(A) For 
        purposes of any determination under paragraph (2)(A) with 
        respect to an export or transfer of an item on the MTCR Annex, 
        the term `foreign person', in addition to the meaning set forth 
        in section 116(13), means, in the case of countries with 
        nonmarket economies (other than former members of the Warsaw 
        Pact)--
                    (i) all activities of the government of any such 
                country relating to the development or production of 
                any missile equipment or technology; and
                    (ii) all activities of that government affecting 
                the development or production of electronics, space 
                systems or equipment, and military aircraft.
            (B) As used in subparagraph (A), the term ``missile 
        equipment or technology' means those items listed in category I 
        or II of the MTCR Annex.
    (d) Sanctions Against Countries For Use of Chemical or Biological 
Weapons.--
            (1) Determination.--
                    (A In general.--Whenever persuasive information 
                becomes available to the executive branch indicating 
                the substantial possibility that, on or after the date 
                of the enactment of this Act, the government of a 
                foreign country has made substantial preparation to use 
                or has used chemical or biological weapons in violation 
                of international law or has used lethal chemical or 
                biological weapons against its own nationals, the 
                President shall, within 60 days after the receipt of 
                such information by the executive branch, determine 
                whether that government, on or after such date of 
                enactment, has used chemical or biological weapons in 
                violation of international law, or has used lethal 
                chemical or biological weapons against its own 
                nationals.
                    (B) Matters to be considered.--In making the 
                determination under subparagraph (A), the President 
                shall consider the following:
                            (i) All physical and circumstantial 
                        evidence available bearing on the possible use 
                        of chemical or biological weapons.
                            (ii) All information provided by alleged 
                        victims, witnesses, and independent observers.
                            (iii) The extent of the availability of the 
                        weapons in question to the purported user.
                            (iv) All official and unofficial statements 
                        bearing on the possible use of such weapons.
                            (v) Whether, and to what extent, the 
                        government in question is willing to honor a 
                        request from the Secretary General of the 
                        United Nations to grant timely access to a 
                        United Nations fact-finding team to investigate 
                        the possibility of chemical or biological 
                        weapons use or to grant such access to other 
                        legitimate outside parties.
            (2) Determination to be reported to congress.--Upon making 
        a determination under paragraph (1), the President shall 
        promptly report that determination to the Congress. If the 
        determination is that a foreign government has used such 
        weapons as described in that paragraph, the report shall 
        specify the sanctions to be imposed pursuant to paragraph (4).
            (3) Congressional requests; report.--
                    (A) Request.--The Chairman of the Committee on 
                Foreign Relations of the Senate (upon consultation with 
                the ranking minority member of such committee) or the 
                Chairman of the Committee on Foreign Affairs of the 
                House of Representatives (upon consultation with the 
                ranking minority member of such committee) may at any 
                time request the President to consider whether a 
                particular foreign government, on or after the date of 
                the enactment of this Act, has used chemical or 
                biological weapons in violation of international law or 
                has used lethal chemical or biological weapons against 
                its own nationals.
                    (B) Report to congress.--Not later than 60 days 
                after receiving such a request, the President shall 
                provide to the Chairman of the Committee on Foreign 
                Relations of the Senate and the Chairman of the 
                Committee on Foreign Affairs of the House of 
                Representatives a written report on the information 
                held by the executive branch which is pertinent to the 
                issue of whether the specified government, on or after 
                the date of the enactment of this Act, has used 
                chemical or biological weapons in violation of 
                international law or has used lethal chemical or 
                biological weapons against its own nationals. The 
                report under this subparagraph shall contain an 
                analysis of each of the items enumerated in paragraph 
                (1)(B).
            (4) Mandatory sanctions for use of chemical or biological 
        weapons.--The following sanctions shall be imposed for a 
        minimum of 2 years in the event the President makes an 
        affirmative determination under paragraph (1) with respect to 
        the government of a foreign country:
                    (A) Foreign assistance.--The United States 
                Government shall terminate assistance to that country 
                under the Foreign Assistance Act of 1961, except for 
                urgent humanitarian assistance and food or other 
                agricultural commodities or products.
                    (B) Arms sales.--The United States Government 
                shall--
                            (i) terminate sales to that country under 
                        the Arms Export Control Act of any defense 
                        articles, defense services, or design and 
                        construction services; and
                            (ii) terminate and deny licenses for the 
                        export to that country of any item on the 
                        United States Munitions list.
                    (C) Arms sales financing.--The United States 
                Government shall terminate all foreign military 
                financing for that country under the Arms Export 
                Control Act.
                    (D) Denial of united states government credit or 
                other financial assistance.--The United States 
                Government shall deny to that country any credit, 
                credit guarantees, or other financial assistance by any 
                department, agency, or instrumentality of the United 
                States Government, including the Export-Import Bank of 
                the United States.
                    (E) Exports of national security-sensitive items.--
                The authorities of this title shall be used to prohibit 
                the export to that country of any commodities or 
                technology controlled or prohibited for export under 
                section 106(i).
                    ((F) Imports.--There shall be a prohibition on the 
                importation into the United States of goods that are 
                the growth, produce, or manufacture of that country in 
                an amount equal to or greater than the dollar value of 
                exports prohibited under subparagraph (E).)
                    ((F) Imports.--There shall be a prohibition on the 
                importation into the United States of goods that are 
                the growth, produce, or manufacture of that country. 
                The President shall determine the type and volume of 
                imports to be prohibited, taking into consideration the 
                volume of exports prohibited under subparagraph (E).)
            (5) Additional sanctions if certain conditions not met.--
        Unless, within 3 months after making a determination under 
        paragraph (1) with respect to the government of a foreign 
        country, the President determines and certifies, in writing, to 
        the Congress that--
                    (A) the government is no longer using chemical or 
                biological weapons in violation of international law or 
                using lethal chemical or biological weapons against its 
                own nationals,
                    (B) the government has provided reliable assurances 
                that it will not, in the future, engage in any such 
                activities, and
                    (C) the government is willing to allow on-site 
                inspections by United Nations observers or other 
                internationally recognized, impartial observers, or 
                other reliable means exist, to ensure that government 
                is not using chemical or biological weapons in 
                violation of international law and is not using lethal 
                chemical or biological weapons against its own 
                nationals,
        then the President, after consultation with the Congress, shall 
        impose on that country for a period of at least 2 years the 
        sanctions set forth in at least 3 of subparagraphs (A) through 
        (F) of paragraph (6).
            (6) Additional sanctions for use of chemical or biological 
        weapons.--The sanctions referred to in paragraph (5) are the 
        following:
                    (A) Multilateral development bank assistance.--The 
                United States Government shall oppose, in accordance 
                with section 701 of the International Financial 
                Institutions Act (22 U.S.C. 262d), the extension of any 
                loan or financial or technical assistance to the 
                foreign country by international financial 
                institutions.
                    (B) Bank loans.--The United States Government shall 
                prohibit any United States bank from making any loan or 
                providing any credit to the government of that country, 
                except for loans or credits for the purpose of 
                purchasing food or other agricultural commodities or 
                products.
                    (C) Further restrictions.--(i) The authorities of 
                this title shall be used to prohibit exports to that 
                country of all items (except for those items described 
                in section 114(k)).
                    (ii) Restrictions shall be imposed on the 
                importation into the United States of goods (which may 
                include petroleum or any petroleum product) that are 
                the growth, product, or manufacture of that country.
                    (D) Diplomatic relations.--The President shall use 
                his constitutional authorities to downgrade or suspend 
                diplomatic relations between the United States and the 
                government of that country.
                    (E) Presidential action regarding aviation.--
                            (i)(I) The President is authorized to 
                        notify the government of that country of his 
                        intention to suspend the authority of foreign 
                        air carriers owned or controlled by the 
                        government of that country to engage in foreign 
                        air transportation to or from the United 
                        States.
                            (II) Within 10 days after the date of 
                        notification of a government under subclause 
                        (I), the Secretary of Transportation shall take 
                        all steps necessary to suspend at the earliest 
                        possible date the authority of any foreign air 
                        carrier owned or controlled, directly or 
                        indirectly, by that government to engage in 
                        foreign air transportation to or from the 
                        United States, notwithstanding any agreement 
                        relating to air services.
                            (ii)(I) The President may direct the 
                        Secretary of State to terminate any air service 
                        agreement between the United States and that 
                        country, in accordance with the provisions of 
                        that agreement.
                            (II) Upon termination of an agreement under 
                        this clause, the Secretary of Transportation 
                        shall take such steps as may be necessary to 
                        revoke at the earliest possible date the right 
                        of any foreign air carrier owned or controlled, 
                        directly or indirectly, by the government of 
                        that country to engage in foreign air 
                        transportation to or from the United States.
                            (iii) The Secretary of Transportation may 
                        provide for such exceptions from clauses (i) 
                        and (ii) as the Secretary considers necessary 
                        to provide for emergencies in which the safety 
                        of an aircraft or its crew or passengers is 
                        threatened.
                            (iv) For purposes of this subparagraph, the 
                        terms ``air transportation'', ``air carrier'', 
                        ``foreign air carrier'', and ``foreign air 
                        transportation'' have the meanings given those 
                        terms in section 101 of the Federal Aviation 
                        Act of 1958 (49 U.S.C. App. 1301).
    (e) Removal of Sanctions.--
            (1) For violations under subsection (c).--The President 
        shall remove the sanctions imposed under paragraph (1) or (2) 
        of subsection (c) if the President determines and so certifies 
        to the Congress, after the end of the 12-month period beginning 
        on the date on which the sanctions were initially imposed, 
        that--
                    (A) reliable information indicates that--
                            (i) the United States person with respect 
                        to which the determination was made under 
                        subsection (c)(1) has ceased all activities 
                        that gave rise to the sanctions; or
                            (ii) the foreign person with respect to 
                        which the determination was made under 
                        subsection (c)(2) has ceased to contribute to 
                        the efforts of any government, group, entity, 
                        or project to use, design, develop, produce, 
                        stockpile, or otherwise acquire chemical or 
                        biological weapons or missiles; and
                    (B) the President has received reliable assurances 
                from that United States person or foreign person that 
                such person will not, in the future, perform any of the 
                actions described in subsection (c)(1) or (2) (as the 
                case may be).
            (2) For violations under subsection (d).--The President 
        shall remove the sanctions imposed with respect to a country 
        under paragraph (4) or (6) of subsection (d) if the President 
        determines and so certifies to the Congress, after the end of 
        the 12-month period beginning on the date on which such 
        sanctions were initially imposed, that--
                    (A) the government of that country has provided 
                reliable assurances that it will not use chemical or 
                biological weapons in violation of international law 
                and will not use lethal chemical or biological weapons 
                against its own nationals;
                    (B) the government is not making preparations to 
                use chemical or biological weapons in violation of 
                international law or to use lethal chemical or 
                biological weapons against its own nationals;
                    (C) the government is willing to allow on-site 
                inspections by United Nations observers or other 
                internationally recognized, impartial observers to 
                verify that it is not making preparations to use 
                chemical or biological weapons in violation of 
                international law or to use lethal chemical or 
                biological weapons against its own nationals, or other 
                reliable means exist to verify that it is not making 
                such preparations; and
                    (D) the government is making restitution to those 
                affected by any use of chemical or biological weapons 
                in violation of international law or by any use of 
                lethal chemical or biological weapons against its own 
                nationals.
            ((3) Authority to revoke import sanctions in certain 
        circumstances.-- The President may revoke any import sanction 
        imposed under subsection (c) or (d) if the President 
        determines, as a result of applicable international dispute 
        settlement proceedings, that the imposition of such sanctions 
        is inconsistent with international legal obligations of the 
        United States and that it is appropriate under the 
        circumstances to comply with such obligations.)
    (f) Waivers for Violations Under Subsection (c).--
            (1) Waiver.--The President may waive the imposition of 
        sanctions under paragraph (1) or (2) of subsection (c) with 
        respect to a product or service if the President certifies to 
        the Congress that--
                    (A) the product or service is essential to the 
                national security of the United States; and
                    (B) the sanctioned entity is a sole source supplier 
                of the product or service, the product or service is 
                not available from any alternative reliable supplier, 
                and the need for the product or service cannot be met 
                in a timely manner by improved manufacturing processes 
                or technological developments.
            (2) Additional waiver.--(A) The President may waive the 
        imposition of any sanction under subsection (c)(2) if the 
        President determines such waiver is essential to the national 
        security of the United States.
            (B) If the President decides to apply the waiver described 
        in subparagraph (A), the President shall so notify the Congress 
        not less than 20 days before issuing the waiver. Such 
        notification shall include a report fully articulating the 
        rationale and circumstances which led the President to exercise 
        the waiver authority.
            (3) Exceptions.--The President shall not apply the sanction 
        under subsection (c)(2) prohibiting the importation of the 
        products of a sanctioned entity--
                    (A) in the case of procurement of defense articles 
                or defense services--
                            (i) under existing contracts or 
                        subcontracts, including the exercise of options 
                        for production quantities to satisfy 
                        requirements essential to the national security 
                        of the United States;
                            (ii) if the President determines that the 
                        entity to which the sanctions would be applied 
                        is a sole source supplier of the defense 
                        articles and services, that the defense 
                        articles or services are essential to the 
                        national security of the United States, and 
                        that alternative sources are not readily or 
                        reasonably available; or
                            (iii) if the President determines that such 
                        articles or services are essential to the 
                        national security of the United States under 
                        defense coproduction agreements or Programs of 
                        Cooperation of the North Atlantic Treaty 
                        Organization;
                    (B) to products or services provided under 
                contracts entered into before the date on which the 
                President publishes his intention to impose the 
                sanctions; or
                    (C) to--
                            (i) spare parts;
                            (ii) components parts, but not finished 
                        products, essential to United States products 
                        or production;
                            (iii) routine services and maintenance of 
                        products, to the extent that alternative 
                        sources are not readily or reasonably 
                        available; or
                            (iv) information or technology essential to 
                        United States products or production.
    (g) Waivers of Violations Under Subsection (d).--
            (1) Criteria for waiver.--The President may waive the 
        application of any sanction imposed with respect to a country 
        under paragraph (4) or (6) of subsection (d)--
                    (A) if--
                            (i) in the case of any sanction other than 
                        a sanction specified in subsection (d)(4)(F) or 
                        (d)(6)(C)(ii) (relating to import restrictions) 
                        or (d)(6)(D) (relating to the downgrading or 
                        suspension of diplomatic relations), the 
                        President determines and certifies to the 
                        Congress that such waiver is essential to the 
                        national security interests of the United 
                        States, and the President notifies the 
                        Committee on Foreign Relations of the Senate 
                        and the Committee on Foreign Affairs of the 
                        House of Representatives of his determination 
                        and certification at least 15 days before the 
                        waiver takes effect, in accordance with the 
                        procedures applicable to reprogramming 
                        notifications under section 634A of the Foreign 
                        Assistance Act of 1961; or
                            (ii) in the case of any sanction specified 
                        in subsection (d)(4)(F) or (d)(6)(C)(ii) 
                        (relating to import restrictions), the 
                        President determines and certifies to the 
                        Congress that such waiver is essential to the 
                        national security interests of the United 
                        States, and the President notifies the 
                        Committee on Finance of the Senate and the 
                        Committee on Ways and Means and the Committee 
                        on Foreign Affairs of the House of 
                        Representatives of his determination and 
                        certification at least 15 days before the 
                        waiver takes effect; or
                    (B) if the President determines and certifies to 
                the Congress that there has been a fundamental change 
                in the leadership and policies of the government of 
                that country, and if the President notifies the 
                Congress at least 20 days before the waiver takes 
                effect.
            (2) Report.--In the event that the President decides to 
        exercise the waiver authority provided in paragraph (1) with 
        respect to a country, the President's notification to the 
        Congress under such paragraph shall include a report fully 
        articulating the rationale and circumstances which led the 
        President to exercise that waiver authority, including a 
        description of the steps which the government of that country 
        has taken to satisfy the conditions set forth in subparagraphs 
        (A) through (D) of subsection (e)(2).
    (h) Contract Sanctity.--
            (1) Sanctions not applied to existing contracts.--(A) A 
        sanction described in subparagraph (D), (E), or (F) of 
        subsection (d)(4) or in any of subparagraphs (A) through (C) of 
        subsection (d)(6) shall not apply to any activity pursuant to 
        any contract or international agreement entered into before the 
        date of the presidential determination under subsection (d)(1) 
        unless the President determines, on a case-by-case basis, that 
        to apply such sanction to that activity would prevent the 
        performance of a contract or agreement that would have the 
        effect of assisting a country in using chemical or biological 
        weapons in violation of international law or in using lethal 
        chemical or biological weapons against its own nationals.
            (B) The same restrictions of section 114(l) (relating to 
        contract sanctity) which are applicable to exports prohibited 
        under this title shall apply to exports prohibited under 
        subsection (d)(4)(E) or (d)(6)(C)(i). For purposes of this 
        subparagraph, any contract or agreement the performance of 
        which (as determined by the President) would have the effect of 
        assisting a foreign government in using chemical or biological 
        weapons in violation of international law or in using chemical 
        or biological weapons against its own nationals shall be 
        treated as constituting a breach of the peace that poses a 
        serious and direct threat to the strategic interest of the 
        United States, within the meaning of subparagraph (A) of 
        section 114(l)(2).
            (2) Sanctions applied to existing contracts.--The sanctions 
        described in subparagraphs (A), (B), and (C) of subsection 
        (d)(4) shall apply to contracts, agreements, and licenses 
        without regard to the date the contract or agreement was 
        entered into or the license was issued (as the case may be), 
        except that such sanctions shall not apply to any contract or 
        agreement entered into or license issued before the date of the 
        presidential determination under subsection (d)(1) if the 
        President determines that the application of such sanction 
        would be detrimental to the national security interests of the 
        United States.
    (i) Protection of Classified Information.--To the extent 
practicable, reports submitted under this section should be based on 
unclassified information. Portions of such reports may be classified.

SEC. 112. ADMINISTRATIVE AND JUDICIAL REVIEW.

    (a) Applicability.--
            (1) Exemptions from administrative procedure.--Except as 
        provided in this section, sections 551 and 553 through 559 of 
        title 5, United States Code, do not apply to the functions 
        exercised under this title.
            (2) Judicial review.--(A) Subject to subparagraphs (B) and 
        (C) and except as otherwise provided in this section, actions 
        under this title shall be subject to judicial review under 
        chapter 7 of title 5, United States Code.
            (B) Any discretionary determination of whether a commodity 
        or technology should or should not be on the control index 
        shall not be subject to judicial review.
            (C) An action to obtain judicial review under this 
        subsection may be brought in the appropriate United States 
        district court.
    (b) Procedures Relating to Civil Penalties and Sanctions.--
            (1) Administrative procedures.--Any administrative sanction 
        imposed under section 110(c) may be imposed only after notice 
        and opportunity for an agency hearing on the record in 
        accordance with sections 554 through 557 of title 5, United 
        States Code.
            (2) Availability of charging letter.--Any charging letter 
        or other document initiating administrative proceedings for the 
        imposition of sanctions for violations of the regulations 
        issued under section 108(a) shall be made available for public 
        inspection and copying.
    (c) Collection.--If any person fails to pay a civil penalty imposed 
under section 110(c), the Secretary may ask the Attorney General to 
bring a civil action in an appropriate district court to recover the 
amount imposed (plus interest at currently prevailing rates from the 
date of the final order).
    (d) Imposition of Temporary Denial Orders.--
            (1) Grounds for imposition.--In any case in which there is 
        reasonable cause to believe that a person is engaged in or is 
        about to engage in any act or practice which constitutes or 
        would constitute a violation of this title, or any regulation, 
        order, or license issued under this title, or in any case in 
        which a criminal indictment has been returned against a person 
        alleging a violation of this title or any of the statutes 
        listed in section 110(f), the Secretary may, without a hearing, 
        issue an order temporarily denying that person's United States 
        export privileges (hereafter in this subsection referred to 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 periods of not more than 180 days each.
            (2) Administrative appeals.--The person or persons subject 
        to the issuance or renewal of a temporary denial order may 
        appeal the issuance or renewal of the temporary denial order, 
        supported by briefs and other material, to an administrative 
        law judge who shall, within 15 working days after the appeal is 
        filed, issue a decision affirming, modifying, or vacating the 
        temporary denial order. The temporary denial order shall be 
        affirmed if it is shown that--
                    (A) there is reasonable cause to believe that the 
                person subject to the order is engaged in or is about 
                to engage in any act or practice which constitutes or 
                would constitute a violation of this title, or any 
                regulation, order, or license issued under this title, 
                or
                    (B) a criminal indictment has been returned against 
                the person subject to the order alleging a violation of 
                this title or any of the statutes listed in section 
                110(f).
        The decision of the administrative law judge shall be final 
        unless, within 10 working days after the date of the 
        administrative law judge's decision, an appeal is filed with 
        the Secretary. On appeal, the Secretary shall either affirm, 
        modify, reverse, or vacate the decision of the administrative 
        law judge by written order within 10 working days after 
        receiving the appeal. The written order of the Secretary shall 
        be final and is not subject to judicial review, except as 
        provided in paragraph (3). The materials submitted to the 
        administrative law judge and the Secretary shall constitute the 
        administrative record for purposes of review by the court.
            (3) Court appeals.--An order of the Secretary affirming, in 
        whole or in part, the issuance or renewal of a temporary denial 
        order may, within 15 days after the order is issued, be 
        appealed by a person subject to the order to the United States 
        Court of 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 issuance 
        of the temporary denial order was based on reasonable cause to 
        believe that the person subject to the order was engaged in or 
        was about to engage in any act or practice which constitutes or 
        would constitute a violation of this title, or any regulation, 
        order, or license issued under this title, or if a criminal 
        indictment has been returned against the person subject to the 
        order alleging a violation of this title or any of the statutes 
        listed in section 110(f). The court shall vacate the 
        Secretary's order if the court finds that the Secretary's order 
        is arbitrary, capricious, an abuse of discretion, or otherwise 
        not in accordance with law.
    (e) Appeals From Licensing and Classification Actions.--
            (1) License denials.--A determination of the Secretary 
        under section 109 to deny a license may be appealed by the 
        applicant to an administrative law judge who shall have the 
        authority to conduct proceedings to determine only whether the 
        item sought to be exported is in fact on the control list. Such 
        proceedings shall be conducted within 90 days after the appeal 
        is filed. Any determination by an administrative law judge 
        under this subsection and all materials filed before such judge 
        in the proceedings shall be reviewed by the Secretary, who 
        shall either affirm or vacate the determination in a written 
        decision within 30 days after receiving the determination.
            (2) Classification decisions.--(A) Within 30 days after the 
        issuance of a classification decision under section [109(h)(1)] 
        109(i)(1), or within 30 days after the failure to issue such a 
        classification decision in response to a request for such a 
        decision, any United States person aggrieved by such decision 
        or failure may file an appeal thereof to an administrative law 
        judge, but only on issues regarding such classification 
        decision including, but not limited to, decisions of whether an 
        item is covered by any general or specific note. The 
        administrative law judge may not review determinations as to 
        the reliability of an end user or the nature of an end use or 
        end user. The administrative law judge shall, within 90 days 
        after such appeal is filed, issue his or her decision and issue 
        any order that is necessary or appropriate to carry out such 
        decision. Such order shall be binding upon the Secretary unless 
        and until vacated or modified under subparagraph (B). Such 
        order may be stayed by the administrative law judge or the 
        Secretary pending the filing and determination of an appeal 
        under subparagraph (B).
            (B) Any United States person aggrieved by a decision of the 
        administrative law judge under subparagraph (A) may appeal such 
        decision to the Secretary within 45 days after receiving 
        notification of such decision. The Secretary shall, in a 
        written order, affirm, modify, or vacate the decision of the 
        administrative law judge within 30 days after such appeal is 
        filed. The authority of the Secretary under this paragraph may 
        not be delegated to an officer or employee of the Bureau of 
        Export Administration.
            (3) Publication and indexing of decisions.--Subject to the 
        limitations of section 114(g), final decisions of 
        administrative law judges and the Secretary under this 
        subsection shall be published in the Federal Register within 15 
        days after they are rendered. The Secretary shall index 
        decisions on appeals of license denials.
            (4) Conduct of proceedings.--Except as provided in this 
        subsection, proceedings under this subsection shall be 
        conducted in accordance with sections 554 (notwithstanding 
        subsection (a)(4) of such section), 556, and 557 of title 5, 
        United States Code.
            (5) Regulations.--The Secretary shall issue such 
        regulations as are necessary to carry out this subsection.
            (6) Other rights not affected.--The rights granted by this 
        subsection do not abridge any other rights provided by law.
            (7) Effective date.--This subsection shall take effect 120 
        days after the date of the enactment of this Act. Regulations 
        implementing this subsection shall be promulgated no later than 
        such effective date.

SEC. 113. ENFORCEMENT.

    (a) General Authority and Designation.--
            (1) Policy guidance on enforcement.--The Secretary, in 
        consultation with the Secretary of the Treasury and the heads 
        of other appropriate departments and agencies, shall be 
        responsible for providing policy guidance on the enforcement of 
        this title.
            (2) General authorities.--(A) To the extent necessary or 
        appropriate to the enforcement of this title or to the 
        imposition of any penalty, forfeiture, or liability arising 
        under the Export Administration Act of 1979, officers or 
        employees of the Department of Commerce designated by the 
        Secretary and officers and employees of the United States 
        Customs Service designated by the Commissioner may exercise the 
        enforcement authorities described in paragraph (3).
            (B) In carrying out the enforcement authorities described 
        in paragraph (3), the Commissioner of Customs, and employees of 
        the United States Customs Service designated by the 
        Commissioner, may make investigations within or outside the 
        United States and at 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 
        Customs Service is authorized, in the enforcement of this 
        title, to search, detain (after search), and seize commodities 
        or technology at those ports of entry or exit from the United 
        States where officers of the Customs Service are authorized by 
        law to conduct such searches, detentions, 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.
            (C) In carrying out the enforcement authorities described 
        in paragraph (3), the Secretary, and officers and employees of 
        the Department of Commerce designated by the Secretary, may 
        make investigations within the United States, and shall 
        conduct, outside the United States, pre-license and post-
        shipment verifications of items licensed for export and 
        investigations in the enforcement of section 108. The 
        Secretary, and officers and employees of the Department of 
        Commerce designated by the Secretary, are authorized to search, 
        detain (after search), and seize items at those places within 
        the United States other than those ports and borders specified 
        in subparagraph (B). The search, detention (after search), or 
        seizure of items at those ports and borders specified in 
        subparagraph (B) may be conducted by officers and employees of 
        the Department of Commerce only with the concurrence of the 
        Commissioner of Customs or a person designated by the 
        Commissioner.
            (D) The Secretary and the Commissioner of Customs may enter 
        into agreements and arrangements for the enforcement of this 
        title, including foreign 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 authority under this title:
                    (i) Make investigations of, obtain information 
                from, make inspection of any books, records, or reports 
                (including any writings required 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 contumacy 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 a hearing, shall have jurisdiction to issue 
                an order requiring such person to appear and give 
                testimony or to appear and produce books, records, and 
                other writings, or both. Any failure to obey such order 
                of the court may be punished by such court as a 
                contempt thereof.
            (B) Any officer or employee of the Office of Export 
        Enforcement of the Department of Commerce who is designated by 
        the Secretary under paragraph (2), and any officer or employee 
        of the United States Customs Service who is designated by the 
        Commissioner of Customs under paragraph (2), may do the 
        following in carrying out the enforcement authority under this 
        title:
                    (i) Execute any warrant or other process issued by 
                a court or officer of competent jurisdiction 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.
            (C) Any officer or employee of the United States Customs 
        Service designated by the Commissioner of Customs under 
        paragraph (2) may do the following in carrying out the 
        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 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.
                    (ii) Detain and search any package or container in 
                which the officer or employee has reasonable cause to 
                suspect there is any item that has been, is being, or 
                is about to be exported from or transited through the 
                United States in violation of this title.
            (D) Any officer or employee designated under paragraph (2) 
        may detain (after search under subparagraph (C)) or seize any 
        item, for purposes of securing for trial or forfeiture to the 
        United States, on or about a vehicle, vessel, aircraft, or 
        person described in subparagraph (C)(i), or in a package or 
        container described in subparagraph (C)(ii), if the officer or 
        employee has probable cause to believe the item has been, is 
        being, or is about to be exported from or transited through the 
        United States in violation of this title.
            (4) Other authorities not affected.--The authorities 
        conferred by this section are in addition to any authorities 
        conferred under other laws.
    (b) Forfeiture.--All 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 proceeds from 
        the sale thereof,
            (3) the remission or mitigation of such forfeitures, and
            (4) the compromise of claims,
shall apply to seizures and forfeitures incurred, or alleged to have 
been incurred, under the provisions of this subsection, insofar as 
applicable and not inconsistent with this title; except that such 
duties as are imposed upon the customs officer or any other person with 
respect to the seizure and forfeiture of property under the customs 
laws may be performed with respect to seizures and forfeitures of 
property under this subsection by the Secretary or such officers and 
employees of the Department of Commerce as may be authorized or 
designated for that purpose by the Secretary, or, upon the request of 
the Secretary, by any other agency that has authority to manage and 
dispose of seized property.
    (c) Referral of Cases.--All cases involving violations 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.
    (d) Undercover Investigation Operations.--
            (1) Use of funds.--With respect to any undercover 
        investigative operation conducted by the Office of Export 
        Enforcement of the Department of Commerce (hereafter in this 
        subsection referred to as ``OEE'') necessary for the detection 
        and prosecution of violations of this title--
                    (A) funds made available for export enforcement 
                under this title may be used to purchase 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 undesignated paragraph under the heading of 
                ``miscellaneous'' of the Act of March 3, 1877, (40 
                U.S.C. 34), sections 3732(a) and 3741 of the Revised 
                Statutes of the United States (41 U.S.C. 11(a) and 22), 
                and subsections (a) and (c) of section 304, and section 
                305 of the Federal Property and Administrative Services 
                Act of 1949 (41 U.S.C. 254(a) and (c) and 255),
                    (B) funds made available for export enforcement 
                under this title may be used to establish or to acquire 
                proprietary corporations or business entities as part 
                of an undercover operation, and to operate such 
                corporations or business entities on a commercial 
                basis, without regard to section 9102 of title 31, 
                United States Code,
                    (C) funds made available for export enforcement 
                under this title and the proceeds from 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 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 the action authorized 
        by subparagraph (A), (B), (C), or (D) for which the funds would 
        be used is necessary for the conduct of the undercover 
        operation.
            (2) Disposition of business entities.--If a corporation or 
        business entity established or acquired as part of an 
        undercover operation 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 designee determines is 
        practicable. The proceeds of the liquidation, sale, or other 
        disposition, after obligations incurred by the corporation or 
        business enterprise 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 operation 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 
        Secretary 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 annual report under 
        section 115, specifying the following 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 preceding the 
                period for which such report is submitted.
                    (iii) The number of 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) 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 
                proceedings (other than appeals) pursuant to the 
                investigative operation are concluded, or covert 
                activities pursuant to such operation are concluded, 
                whichever occurs later;
                    (B) the terms ``undercover investigative 
                operation'' and ``undercover operation'' mean any 
                undercover investigative operation conducted by OEE--
                            (i) in which the gross receipts (excluding 
                        interest earned) exceed $25,000, or 
                        expenditures (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 
                subparagraph (B) of paragraph (4); and
                    (C) the term ``employees'' means employees, 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 PROCEDURES.

    (a) Policy Guidance.--
            (1) In general.--As directed by the President, annual 
        policy guidance shall be issued to provide detailed 
        implementing guidance to export licensing officials in all 
        appropriate departments and agencies.
            (2) Elements of annual policy review.--In order to develop 
        such annual policy guidance, export controls and other 
        regulations to implement this title shall be reviewed annually. 
        This annual policy review shall include an evaluation of the 
        benefits and costs of the imposition, extension, or removal of 
        controls under this title. This review shall include--
                    (A) an assessment by the Secretary of the economic 
                consequences of the imposition, extension, or removal 
                of controls during the preceding 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 objectives; and
                    (C) an assessment by the Secretary of Defense of 
                the impact that the imposition, extension, or removal 
                of controls during the preceding 12 months has had on 
                United States national security.
    (b) Export Control Authority and Functions.--
            (1) In general.--Unless otherwise reserved to the President 
        or a department or agency outside the Department of Commerce, 
        all power, authority, and discretion conferred by this title 
        shall be exercised by the Secretary.
            (2) Delegation of functions of the secretary.--The 
        Secretary may delegate any function under this title to the 
        Under Secretary of Commerce for Export Administration appointed 
        under subsection (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 proposed by the 
                Secretary and other members of the Committee; and
                    (C) receive policy recommendations from other 
                agencies and resolve any policy disputes among 
                departments and agencies under this title.
            (3) Membership.--The Committee shall be comprised of--
                    (A) the Secretary;
                    (B) the Secretary of Defense;
                    (C) the Secretary of Energy;
                    (D) the Secretary of State;
                    (E) the National Security Adviser;
                    (F) the National Economic Adviser;
                    (G) the Secretary of the Treasury;
                    (H) the United States Trade Representative; and
                    (I) the Director of the Arms Control and 
                Disarmament Agency.
            (4) Chair.--The Committee shall be jointly chaired by the 
        National Economic Adviser and the National Security Adviser.
            (5) Delegation; other representatives.--A member of the 
        Committee under paragraph (3) may designate the deputy head of 
        his or her department 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 Chairs 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 Secretary or either 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 appoint, by and with 
        the advice and consent of the Senate, an Under Secretary of 
        Commerce for Export Administration who shall carry out all 
        functions of the Secretary under this title and other 
        provisions of law relating to national security, as the 
        Secretary may delegate. The President shall appoint, by and 
        with the advice and consent of the Senate, two Assistant 
        Secretaries of Commerce to assist the Under Secretary in 
        carrying out such functions.
            (2) Transition provisions.--Those individuals 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 before the date of the enactment of this Act, shall be 
        deemed to have been appointed under paragraph (1) 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 or 
106 may be issued only after the regulations are submitted for review 
to such departments or agencies as the President considers appropriate, 
and to any appropriate export advisory committee appointed under 
section 104(f). The preceding sentence does not require the concurrence 
or approval of any official, department, or agency to which such 
regulations are submitted.
    (f) Amendments to Regulations.--If the Secretary proposes to amend 
regulations issued under this title, the Secretary shall report to the 
Committee on Banking, Housing, and Urban Affairs of the Senate and the 
Committee on Foreign Affairs 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 formulating or amending regulations 
issued under this title.
    (g) Confidentiality of Information.--
            (1) Exemptions from disclosure.--
                    (A) Except as otherwise provided by the third 
                sentence of section 108(b)(2), information obtained 
                under the Export Administration Act of 1979 and its 
                predecessor statutes on or before June 30, 1980, which 
                is deemed confidential, including Shipper's Export 
                Declarations, or with reference to which a request for 
                confidential treatment is made by the person furnishing 
                such information, shall be exempt from disclosure under 
                section 552 of title 5, United States Code, and such 
                information shall not be published or disclosed unless 
                the Secretary determines that the withholding thereof 
                is contrary to the national interest.
                    (B) 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 information submitted, obtained, or 
                considered in connection with an application for an 
                export license or other export authorization under the 
                Export Administration Act of 1979 or this title, 
                including the export license or other export 
                authorization itself, classification requests described 
                in section 109(h)(1), information obtained during the 
                course of a foreign availability assessment, 
                information or evidence obtained in the course of any 
                investigation, and information obtained or furnished 
                under this title in connection with international 
                agreements, treaties, or obligations shall be withheld 
                from public disclosure 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 withholding of information 
                from the Congress or from the General Accounting 
                Office.
                    (B) Availability to the congress.--
                            (i) In general.--All information obtained 
                        at any time under this title or previous Acts 
                        regarding the control of exports, including any 
                        report or license application required under 
                        this title, shall be made available to any 
                        committee or subcommittee of Congress of 
                        appropriate jurisdiction upon the request of 
                        the chairman or ranking minority member of such 
                        committee or subcommittee.
                            (ii) Prohibition on further disclosure.--No 
                        committee, subcommittee, or Member of Congress 
                        shall disclose any information obtained under 
                        this title or previous Acts regarding the 
                        control of exports which is submitted on a 
                        confidential basis to the Congress under clause 
                        (i) unless the full committee to which the 
                        information is made available determines that 
                        the withholding of the information is contrary 
                        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, counterintelligence, and law 
                        enforcement sources, methods, and activities, 
                        as determined by the agency that originally 
                        obtained the information, and consistent with 
                        the provisions of section 716 of title 31, 
                        United States Code, be made available only by 
                        the agency, upon request, to the Comptroller 
                        General of the United States or to any officer 
                        or employee of the General Accounting Office 
                        authorized by the Comptroller General to have 
                        access to such information.
                            (ii) Prohibition on further disclosures.--
                        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 identified.
            (3) Information exchange.--Notwithstanding paragraph (1), 
        the Secretary and the Commissioner of Customs shall exchange 
        licensing and enforcement information with each other which is 
        necessary to facilitate enforcement efforts and effective 
        license decisions.
            (4) Penalties for disclosure of confidential information.--
        Any officer or employee of the United States, or any department 
        or agency thereof, who publishes, divulges, discloses, or makes 
        known in any manner or to any extent not authorized by law any 
        information that--
                    (A) he or she obtains in the course of his or her 
                employment or official duties or by reason of any 
                examination or investigation made by, or report or 
                record made to or filed with, such department or 
                agency, or officer or employee 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 organizations, private individuals, private associations, 
and other groups in connection with seminars, publications, and related 
activities to carry out export activities, including educating the 
public or government officials on the application of this title and the 
regulations issued under this title. The Secretary is further 
authorized to accept contributions 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 covering the costs of such 
activities, and for providing information 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 Control Program.--The 
Secretary is authorized to provide training to officials of other 
countries on the principles and procedures for the implementation of 
effective export controls and shall participate in any such training 
provided by other departments and agencies of the United States.
    (j) Incorporated Commodities and Technology.--
            (1) Commodities containing controlled parts and 
        components.--Export licenses may not be required under this 
        title or any other provision of law for a commodity solely 
        because the commodity contains parts or components on which 
        export controls are in effect under this title if such parts or 
        components--
                    (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 commodity as a whole meet 
        the requirements of subparagraph (A) or (B) of section 
        105(a)(1).
            (2) Reexports of foreign-made items incorporating u.s. 
        items.--
                    (A) Commodities.--(i) Subject to clause (ii), no 
                authority or permission may be required under section 
                105 or 106 to reexport 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 controlled United 
                States content of the commodity produced in such other 
                country is 25 percent or less of the total value of the 
                commodity.
                    (ii) No authority or permission may be required 
                under section 106 to reexport to a terrorist country, 
                or to a country against which an embargo described in 
                section 106(f)(1) is in effect, 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 
                controlled United States content of the commodity 
                produced in such other country is 10 percent or less of 
                the total value of the commodity.
                    (iii) For purposes of clause (ii), a ``terrorist 
                country'' is a country with respect to which a 
                determination is in effect that was made under section 
                106(i)(1)(A) of this Act, or section 6(j)(1)(A) of the 
                Export Administration Act of 1979, that the government 
                of such country has repeatedly provided support for 
                acts of international terrorism.
                    (B) Technology.--(i) No authority or permission may 
                be required under section 105 to reexport 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 controlled United States content of the technology 
                produced in such other country is 25 percent or less of 
                the total value of the technology.
                    (ii) No authority or permission may be required 
                under section 106 to reexport 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 
                controlled United States content of the technology 
                produced in such other country is 10 percent or less of 
                the total value of the technology.
                    (C) Controlled content.--For purposes of this 
                paragraph, the ``controlled United States content'' of 
                a commodity or technology means those commodities or 
                technology that--
                            (i) are subject to the jurisdiction of the 
                        United States;
                            (ii) are incorporated into the commodity or 
                        technology; and
                            (iii) would, at the time of the reexport, 
                        require a validated license under section 105 
                        or 106 if exported from the United States to a 
                        country to which the commodity or technology is 
                        to be reexported.
                    (D) Treatment of certain technical data.--For 
                purposes of this subsection, technology and source code 
                used to design or produce commodities or software 
                produced in a country other than the United States are 
                not incorporated into such commodities or software.
    (k) Exceptions for Medical and Humanitarian Purposes.--This title 
does not authorize controls on--
            (1) medicine or medical supplies; or
            (2) donations of items that are intended to meet basic 
        human needs, including food, educational materials, seeds, hand 
        tools, water resources equipment, clothing and shelter 
        materials, and basic household supplies.
    (l) Sanctity of Existing Contracts and Licenses.--
            (1) In general.--The President may not prohibit the export 
        of items under section 105 or 106--
                    (A) in performance of a contract, agreement, or 
                other contractual commitment entered into before the 
                effective date of any export controls imposed on such 
                items by this title, or the date on which the President 
                reports to the Congress the President's intention to 
                impose controls on the export of such items, whichever 
                date occurs first, or
                    (B) under a validated license or other 
                authorization issued under this title before the 
                effective date of any export controls imposed on such 
                items by this title, or the date on which the President 
                reports to the Congress the President's intention to 
                impose controls on the export of such items, whichever 
                date occurs first.
            (2) Exception.--The prohibition in paragraph (1) shall not 
        apply if the President determines and certifies to the Congress 
        that--
                    (A) a breach of the peace poses a serious and 
                direct threat to the strategic interest of the United 
                States;
                    (B) the prohibition of exports under each such 
                contract, agreement, commitment, license, or 
                authorization will be directly instrumental in 
                remedying the situation posing the direct threat; and
                    (C) the export controls will continue only so long 
                as the direct threat persists.
        The authority of the President to make determinations under 
        this paragraph may not be delegated.
    (m) Publication of Actions.--
            (1) Decisions and actions of the secretary.--
                    (A) In general.--The Secretary shall publish in the 
                Federal Register, to the greatest extent practicable, 
                actions, procedures, and decisions of the Secretary 
                under this title, taking into account restrictions on 
                disclosure of classified or confidential information. 
                The following determinations of the Secretary shall in 
                every case be published in the Federal Register, unless 
                a private party requested the determination and asked 
                that it not be published:
                            (i) Classification of a commodity or 
                        technology on the control index.
                            (ii) Calculation of a commonly-used control 
                        index parameter for a commodity or technology, 
                        including all officially accepted composite 
                        theoretical performance calculations for 
                        computers and microprocessors.
                    (B) Notice of revisions.--Whenever the Secretary 
                makes any revision in the control index with respect to 
                any commodity or technology, or with respect to any 
                country or destination affected by controls imposed 
                under section 105 or section 106, the Secretary shall 
                publish in the Federal Register a notice of such 
                revision and shall specify in such notice under which 
                authority the revision is being made.
            (2) Export control regime actions.--
                    (A) In general.--Not more than 90 days after the 
                date of the enactment of this Act, the Secretary shall 
                publish in the Federal Register the full text of the 
                lists of controlled items of all export control regimes 
                and all notes and understandings of the regimes 
                concerning such lists. The Secretary shall update the 
                publication under the preceding sentence at least once 
                in each 1-year period occurring after the original 
                publication under this subparagraph.
                    (B) Contents.--The Secretary shall publish in the 
                Federal Register--
                            (i) the full text of any agreements 
                        affecting the lists of controlled items of all 
                        export control regimes, together with all 
                        notes, understandings, and other aspects of 
                        such agreements and all revisions to such 
                        texts;
                            (ii) subject to the limitations set forth 
                        in subsection (g), decisions on requests for 
                        exceptions permitted by such export control 
                        regimes for particular exports;
                            (iii) other actions and decisions of such 
                        export control regimes, to the maximum extent 
                        possible; and
                            (iv) unreliable end users with respect to 
                        items on which export controls are imposed 
                        under this title, and persons to whom sanctions 
                        have been applied, or whose export privileges 
                        have been denied, under this title.
                    (C) Timing.--Such publication shall be made not 
                more than 30 days after the agreements are reached, the 
                decisions are made, the actions are taken, or the 
                information becomes available, as the case may be.
                    (D) Exception.--The publication of a particular 
                matter need not be made under this paragraph to the 
                extent that the Secretary submits a written finding to 
                the Congress that to publish that matter would be 
                contrary to national or international security, would 
                abridge the confidentiality of the decision-making 
                processes of an export control regime, or would 
                otherwise be inconsistent with the obligations of the 
                United States to an export control regime.
    (n) Notification of the Public; Consultation With Industry; 
Recordkeeping.--
            (1) Notification of the public.--The Secretary shall keep 
        the public fully apprised of changes in export control policy 
        and procedures instituted under this title with a view to 
        encouraging trade.
            (2) Consultation with industry.--The Secretary shall meet 
        regularly with export advisory committees appointed under 
        section 104(f) in order to obtain their views on United States 
        export control policy and the foreign availability of 
        commodities and technology.
    (o) Delegation to COCOM.--The Secretary, or an officer or employee 
of the Department of Commerce designated by the Secretary, shall be a 
member of the permanent United States delegation to COCOM or its 
successor export control regime.
    (p) Export Control Attaches.--The Secretary shall assign a full-
time export control attache to each of those countries that--
            (1) pose the greatest threat to the United States and its 
        allies with respect to the proliferation of weapons of mass 
        destruction and missiles; and
            (2) received exports pursuant to the largest number of 
        licenses issued under sections 105 and 106, during the 
        preceding 2 calendar years, as compared to licenses issued 
        under such sections for exports to all countries.
Each such attache shall give priority to conducting post-shipment 
verifications, prelicense checks, and other monitoring of end uses in 
the country to which the attache is assigned.
    (q) Authorization For Technical Data.--A validated license 
authorizing the export of any commodities or technology under this 
title shall also authorize the export of operation technical data 
related to such commodities or technology, whether or not such data is 
specifically referenced in the license or license application, if the 
technical level of the data does not exceed the level reasonably 
necessary to install, repair, maintain, inspect, operate, or use the 
commodities or technology.
    (r) Licenses for Spare Parts Not Required.--An individual validated 
license shall not be required under this title for replacement parts 
which are exported to replace on a one-for-one basis parts that were in 
a commodity that was lawfully exported from the United States, unless 
the President determines that such a license should be required for 
such parts.

SEC. 115. ANNUAL REPORT.

    (a) Contents.--Not later than March 1 of each year, the Secretary 
shall submit to the Congress a report on the administration of this 
title during the preceding calendar year. All agencies shall cooperate 
fully with the Secretary in providing information for such report. Such 
report shall include detailed information on the following:
            (1) The implementation of the policies set forth in section 
        103, including delegations of authority by the President under 
        section 104(d), consultations with the export advisory 
        committees established under section 104(f), and any changes in 
        the exercise of the authorities contained in sections 105(a), 
        106(a), 107(a), and 108(a).
            (2) With respect to multilateral export controls imposed or 
        maintained under section 105, the following:
                    (A) The effectiveness of each export control 
                regime, as required by section 105(h), including all 
                information required by section 105(h)(2).
                    (B) Adjustments to multilateral export controls.
                    (C) The implementation of the export licensing 
                treatment authorized by section 105(e).
                    (D) Determinations of foreign availability made 
                under section 105(i), the criteria used to make such 
                determinations, the removal of any export controls 
                under such subsection, and any evidence demonstrating a 
                need to maintain export controls notwithstanding 
                foreign availability.
                    (E) The operation of the indexing system under 
                section 105(k).
            (3) With respect to unilateral export controls imposed 
        under section 106, the following:
                    (A) The effectiveness of such controls.
                    (B) Adjustments to such controls pursuant to 
                negotiations under subsections (a)(5) and (c) of 
                section 106.
                    (C) Embargoes imposed, maintained, or removed in 
                accordance with section 106, including descriptions of 
                each embargo and the rationale for imposing, 
                maintaining, or removing such embargo.
            (4) Short supply controls and monitoring under section 107.
            (5) Organizational and procedural changes undertaken in 
        furtherance of the policies set forth in this title, including 
        changes to increase the efficiency of the export licensing 
        process and to fulfill the requirements of section 109, 
        including an accounting of appeals received, and actions taken 
        pursuant thereto, under section [109(g)] 109(h).
            (6) Violations under section 110 and enforcement activities 
        under section 113.
            (7) The issuance of regulations under this title.
            (8) The results, in as much detail as may be included 
        consistent with the strategic and political interests of the 
        United States and the need to maintain the confidentiality of 
        proprietary information, of the reviews of the security control 
        list, and any revisions to the list resulting from such 
        reviews, required by section 105.
            (9) Each of the assessments described in section 114(a)(2).
    (b) Information on Section 111.--
            (1) Information to be included.--The President shall 
        include in each annual report under subsection (a)--
                    (A) a description of the actions taken to carry out 
                section 111, including the imposition and removal of 
                sanctions under such section;
                    (B) a description of the current efforts of foreign 
                countries and subnational groups to acquire equipment, 
                materials, or technology to develop, produce, or use 
                chemical or biological weapons, together with an 
                assessment of the current and likely future 
                capabilities of such countries and groups to develop, 
                produce, stockpile, deliver, transfer, or use such 
                weapons;
                    (C) a description of--
                            (i) the use of chemical or biological 
                        weapons by foreign countries in violation of 
                        international law,
                            (ii) the use of chemical or biological 
                        weapons by subnational groups,
                            (iii) substantial preparations by foreign 
                        countries and subnational groups to do so, and
                            (iv) the development, production, 
                        stockpiling, or use of chemical or biological 
                        weapons by foreign countries and subnational 
                        groups; and
                    (D) a description of the extent to which foreign 
                persons or governments have knowingly and materially 
                assisted third countries or subnational groups to 
                acquire equipment, material, or technology intended to 
                develop, produce, or use chemical or biological 
                weapons.
            (2) Information should be unclassified.--To the extent 
        practicable, information submitted under paragraph (1) should 
        be based on unclassified information.

SEC. 116. DEFINITIONS.

    As used in this title:
            (1) Australia group.--The term ``Australia Group'' means 
        the multilateral arrangement in which the United States 
        participates that seeks to prevent the proliferation of 
        chemical and biological weapons.
            (2) COCOM.--The term ``COCOM'' means the Coordinating 
        Committee for Multilateral Export Controls, and any successor 
        entity.
            (3) Commodity.--The term ``commodity'' means any article, 
        natural or manmade substance, material, supply, or manufactured 
        product, including inspection and test equipment, and excluding 
        technical data.
            (4) Control or controlled.--The terms ``control'' and 
        ``controlled'' refer to a requirement that an export have a 
        validated license or written reexport authorization.
            (5) Control index.--The term ``control index'' means the 
        United States Commodity Control Index established under section 
        104(c)(1).
            (6) Controllable.--The term ``controllable'' means capable 
        of being made subject to an effective prohibition or 
        significant restriction on exports. A commodity or technology 
        shall not be considered to be controllable unless it is--
                    (A) manufactured or sold by only a limited number 
                of suppliers who can be positively identified;
                    (B) consumed or used by only a limited number of 
                end users who can be positively identified and whose 
                export activities can be controlled; and
                    (C) individually traceable or not easily concealed 
                or disguised.
            (7) Controlled country, controlled end use, and controlled 
        end user.--(A) The term ``controlled country'' means a country 
        identified under section 105(b)(3), and a country on which 
        controls are imposed under section 106.
            (B) The term ``controlled end use'' means an end use 
        identified under section 105(b)(3) and an end use for which 
        exports are controlled under section 106.
            (C) The term ``controlled end user'' means an end user 
        identified under section 105(b)(3) and an end user to which 
        exports are controlled under section 106.
            (8) Cooperating country.--The term ``cooperating country'' 
        means a country that, pursuant to an agreement or other 
        arrangement with the United States or an export control regime, 
        controls exports of items that are consistent with the criteria 
        and standards of that export control regime.
            (9) End use and end user.--(A) The term ``end use'' means 
        the intended application or use of an item as represented by an 
        export license applicant.
            (B) The term ``end user'' means the person located abroad 
        who is the true party in interest in actually receiving an 
        export for the end use designated for the export.
            (10) Export.--The term ``export''--
                    (A) means--
                            (i) an actual shipment, transfer, or 
                        transmission of items out of the United States; 
                        and
                            (ii) a transfer to any person of items 
                        either within the United States or outside of 
                        the United States with the knowledge or intent 
                        that the items will be shipped outside the 
                        United States, transferred, or transmitted to 
                        an unauthorized end user, end use, or 
                        destination;
                    (B) includes the transfer of the registration of a 
                satellite or operational control of a satellite from a 
                party resident in the United States to a party resident 
                in another country; and
                    (C) includes the term ``reexport''.
            (11) Export control regime, multilateral export control 
        regime, multilateral regime, and regime.--The terms ``export 
        control regime'', ``multilateral export control regime'', 
        ``multilateral regime'', and ``regime'' each mean a group of 
        two or more countries which includes the United States and the 
        purpose of which is to curtail, by means of cooperative export 
        controls, access to certain items by certain countries, by 
        certain end users, or for certain end uses.
            (12) Foreign availability, available in fact to controlled 
        countries.--The terms ``foreign availability'' and ``available 
        in fact to controlled countries'' each include production or 
        availability of any item from any country--
                    (A) in which the item is not restricted for export 
                to any controlled country; or
                    (B) in which such export restrictions are 
                determined by the Secretary to be ineffective.
        For purposes of subparagraph (B), the mere inclusion of items 
        on a list of items subject to export controls imposed pursuant 
        to a multilateral export control regime shall not alone 
        constitute credible evidence that the government of a country 
        provides an effective means of controlling the export of such 
        items to controlled countries.
            (13) Foreign person.--The term ``foreign person'' means--
                    (A) an individual who is not a United States 
                citizen or an alien admitted for permanent residence to 
                the United States;
                    (B) any corporation, partnership, business 
                association, society, trust, organization, or other 
                nongovernmental entity created or organized under the 
                laws of a foreign country or that has its principal 
                place of business outside the United States; and
                    (C) any governmental entity of a foreign country 
                that is operating as a business enterprise.
            (14) Item.--The term ``item'' means any commodity or 
        technology.
            (15) License.--The term ``license'' includes both validated 
        licenses and written reexport authorizations.
            (16) Member of an export control regime.--A ``member'' of 
        an export control regime is a country that participates in that 
        regime.
            (17) Missile.--The term ``missile'' means any missile 
        system or component listed in category I of the MTCR Annex, and 
        any other unmanned delivery system or component of similar 
        capability, as well as the specially designed production 
        facilities for these systems.
            (18) Missile technology control regime; mtcr.--The term 
        ``Missile Technology Control Regime'' or ``MTCR'' means the 
        policy statement and guidelines between the United States, the 
        United Kingdom, the Federal Republic of Germany, France, Italy, 
        Canada, and Japan, announced on April 16, 1987, to restrict 
        sensitive missile-related transfers based on the MTCR Annex, 
        and any amendments thereto.
            (19) MTCR annex.--The term ``MTCR Annex'' means the 
        Equipment and Technology Annex of the MTCR, and any amendments 
        thereto.
            (20) Nuclear explosive device.--The term ``nuclear 
        explosive device'' means any device, whether assembled or 
        disassembled, that is designed to produce an instantaneous 
        release of an amount of nuclear energy from special nuclear 
        material that is greater than the amount of energy that would 
        be released from the detonation of one pound of trinitrotoluene 
        (TNT).
            (21) Nuclear suppliers' group.--The term ``Nuclear 
        Suppliers' Group'' means the multilateral arrangement in which 
        the United States participates whose purpose is to restrict the 
        transfers of items with relevance to the nuclear fuel cycle or 
        nuclear explosive applications.
            (22) Person.--The term ``person'' includes the singular and 
        the plural and any individual, partnership, corporation, or 
        other form of association, including (except when used in the 
        term ``foreign person'' or ``United States person'') any 
        government or agency thereof.
            (23) Reexport.--The term ``reexport'' means the shipment, 
        transfer, transshipment, or diversion of items from one foreign 
        country to another.
            (24) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce.
            (25) Software.--The term ``software'' means one or more 
        computer programs or microprograms fixed in any tangible medium 
        of expression.
            (26) Technology.--The term ``technology'' means specific 
        information necessary for the development, production, or use 
        of a commodity, and includes software.
            (27) Unilateral and unilaterally.--(A) The terms 
        ``unilateral'' and ``unilaterally'', with respect to an export 
        control or license treatment, refer to a license requirement or 
        license treatment that is not agreed to by a multilateral 
        regime for any or all of the following elements: the purpose of 
        the license requirement or treatment, the items subject to the 
        license requirement or treatment, the standard of review for 
        applications for such license, the domestic and international 
        procedures for review of such license applications, and the 
        controlled countries, and end uses or end users, to which the 
        review policy applies.
            (B) An export control or license treatment shall be 
        considered to be unilateral or unilaterally maintained by the 
        United States if it is a restriction, condition, or 
        interpretation imposed by the Secretary upon commodities or 
        technology, or upon a license application for the export of 
        commodities or technology, that is not imposed or implemented 
        in similar circumstances by other members of an export control 
        regime, or that is not otherwise specifically permitted by this 
        title.
            (28) United states.--The term ``United States'' means the 
        States of the United States, the District of Columbia, and any 
        commonwealth, territory, dependency, or possession of the 
        United States, and includes the Outer Continental Shelf, as 
        defined in section 2(a) of the Outer Continental Shelf Lands 
        Act (43 U.S.C. 1331(a)).
            (29) United states person.--The term ``United States 
        person'' means any United States resident or national (other 
        than an individual resident outside the United States and 
        employed by other than a United States person), any domestic 
        concern (including any permanent domestic establishment of any 
        foreign concern) and any foreign subsidiary or affiliate 
        (including any permanent foreign establishment) of any domestic 
        concern which is controlled in fact by such domestic concern, 
        as determined under regulations of the President.
            (30) Weapons of mass destruction.--The term ``weapons of 
        mass destruction'' means any chemical, biological, or nuclear 
        weapon, including a nuclear explosive device.

SEC. 117. EFFECTS ON OTHER ACTS.

    [(a) Commodity Jurisdiction.--
            [(1) In general.--Notwithstanding any other provision of 
        law--
                    [(A) an item agreed for control on the 
                International Munitions List of COCOM shall be subject 
                to control under the Arms Export Control Act and not 
                under this title;
                    [(B) except as provided in paragraphs (2), (3), and 
                (5), an item which is on the International Industrial 
                List of COCOM shall be subject to control under this 
                title and not under the Arms Export Control Act; and
                    [(C) no item may be included on both the control 
                index and the United States Munitions List after 
                publication of the lists required under paragraph (4) 
                and resolution of any dispute with respect to such 
                lists under paragraph (5).
            [(2) Exceptions.--(A) An item described in subparagraph (B) 
        that is not on the International Munitions List may be subject 
        to control under the Arms Export Control Act--
                    [(i)(I) for a period of 9 months after the date on 
                which the United States proposes to COCOM that the item 
                be added to the International Munitions List; and
                    [(II) for an additional 9-month period, but only if 
                negotiations in COCOM to add the item to the 
                International Munitions List are continuing; or
                    [(ii) if the Secretary of State, in consultation 
                with the Secretary, so determines, except that if the 
                Secretary disagrees with the Secretary of State with 
                respect to such item, the item may be subject to 
                control under the Arms Export Control Act only if the 
                disagreement is resolved by the Secretaries or by the 
                President pursuant to the procedures set forth in 
                subparagraphs (B) and (C) of paragraph (5).
            [(B) An item referred to in subparagraph (A) is an item 
        that--
                    [(i) is specifically designed, developed, 
                configured, adapted, or modified for military or 
                intelligence application;
                    [(ii) does not have significant civil applications; 
                and
                    [(iii) is not a component the performance capacity 
                and function of which are essentially equivalent to 
                those used for civil applications.
            [(3) Presidential determinations.--An item that is not on 
        the International Munitions List may be subject to control 
        under the Arms Export Control Act if the President--
                    [(A) determines that extraordinary circumstances 
                exist affecting the national security of the United 
                States, which require that the item be controlled under 
                the Arms Export Control Act;
                    [(B) proposes to COCOM that the item be added to 
                the International Munitions List; and
                    [(C) not later than 10 days after making the 
                determination under subparagraph (A), submits a report 
                to the Speaker of the House of Representatives and the 
                President pro tempore of the Senate, describing in 
                detail the reasons for the determination, in 
                appropriate classified form, as necessary.
            [(4) Publication of lists.--
                    [(A)(i) Not later than 3 months after the date of 
                the enactment of this Act, the Secretary shall publish 
                the control index and the Secretary of State shall 
                publish the United States Munitions List, with all 
                revisions that have been made in accordance with this 
                subsection.
                    [(ii) Not later than 3 months after the date of the 
                enactment of this Act, the Secretary of State shall 
                publish in a separate list those items remaining 
                subject to control under the Arms Export Control Act 
                under paragraph (2).
                    [(iii) The publications required by clauses (i) and 
                (ii) shall be made in the Federal Register.
                    [(B) If either the Secretary or the Secretary of 
                State fails to publish a revised list in accordance 
                with subparagraph (A), there shall be excluded from the 
                list of the Secretary that did not so publish a revised 
                list any item included on the list of the Secretary 
                that did so publish a revised list.
            [(5) Commodity jurisdiction dispute resolution.--
                    [(A) Whenever--
                            [(i) the Secretary or the Secretary of 
                        State receives a request to determine whether 
                        an item is subject to control under this title 
                        or the Arms Export Control Act,
                            [(ii) either Secretary finds that an item 
                        is included on both the control index and the 
                        United States Munitions List,
                            [(iii) an item appearing on the list of one 
                        Secretary under paragraph (4)(A)(i) is 
                        considered by the other Secretary to be under 
                        the jurisdiction of that other Secretary, or
                            [(iv) the Secretary disagrees with the 
                        inclusion of an item on the list published 
                        under paragraph (4)(A)(ii),
                the Secretary or the Secretary of State (as the case 
                may be) shall refer the matter and any relevant 
                information to the other Secretary.
                    [(B) The 2 Secretaries shall have a period of 15 
                days following the referral of a matter under 
                subparagraph (A) to resolve any differences with 
                respect to the matter involved.
                    [(C) If the 2 Secretaries fail to resolve such 
                differences within that 15-day period, either Secretary 
                may refer the matter to the President, who, not later 
                than 15 days after receiving the referral, shall notify 
                the 2 Secretaries of his determination on the matter in 
                dispute.
                    [(D) In the event that either the Secretary or the 
                Secretary of State does not respond to a referral under 
                subparagraph (A) by the other Secretary, the Secretary 
                that did not so respond shall be deemed to concur with 
                the other Secretary on the matter involved.
            [(6) References.--For purposes of this subsection, any 
        reference to the ``International Munitions List'' or the 
        ``International Industrial List'' includes a reference to any 
        successor list to the International Munitions List or the 
        International Industrial List, as the case may be.]
    (a) Commodity Jurisdiction.--
            (1) Coordination of controls.--The authority granted under 
        this title and under section 38 of the Arms Export Control Act 
        (22 U.S.C. 2778) shall be exercised in such a manner as to 
        achieve effective coordination between the licensing systems 
        under this title and such section 38 and to share information 
        regarding the trustworthiness of parties.
            (2) Elimination of overlapping controls.--No item may be 
        included on both the control index and the United States 
        Munitions List after the effective date of this title.
            (3) Commodity jurisdiction dispute resolution.--Under such 
        procedures as the President shall establish, disputes regarding 
        conflicting claims of jurisdiction between the control index 
        and the United States Munitions List shall be resolved in a 
        timely fashion by the Department of State, in consultation with 
        other departments and agencies. Consultations shall be carried 
        out through committees chaired by representatives of the 
        Department of State at the level of Assistant Secretary or 
        Under Secretary. The procedures of the committees shall allow 
        the Department of State or other departments or agencies to 
        initiate the resolution of disputes, including in response to 
        requests made to the Departments of State and Commerce. 
        Consultation procedures within the committees shall provide for 
        interagency meetings to permit the free exchange of views 
        regarding jurisdictional issues. Disputes that cannot be 
        resolved may be referred to the President by the Secretary of 
        State, the Secretary of Defense, or the Secretary of Commerce.
    (b) Control of Arms Exports and Imports.--Section 38 of the Arms 
Export Control Act (22 U.S.C. 2778) is amended by striking subsection 
(a)(1) and inserting the following:
    ``(a)(1) In furtherance of world peace and the security and foreign 
policy of the United States, the President is authorized to control the 
import and the export of defense articles and defense services and to 
provide foreign policy guidance to persons of the United States 
involved in the export and import of such articles and services. The 
Secretary of State, with the concurrence of the Secretary of Defense, 
is authorized to designate those items which shall be considered as 
defense articles and defense services for the purposes of this section. 
The Secretary of State is also authorized to promulgate regulations for 
the import and export of such articles and services. The items so 
designated shall constitute the United States Munitions List.''.
    [(b)] (c) Export Controls on Telecommunications.--
            (1) No license required for civil end uses.--The Secretary 
        shall not require a validated license for export or 
        authorization for reexport of telecommunications equipment to 
        civil end users for civil end uses in any of the republics of 
        the former Soviet Union, the People's Republic of China, 
        Poland, the Czech Republic, Slovakia, Bulgaria, Romania, 
        Albania, Estonia, Lithuania, Latvia, Cambodia, Laos, Mongolia, 
        or Vietnam.
            (2) Definitions.--For purposes of this subsection, the term 
        ``telecommunications equipment'' includes--
                    (A) those items described in the Advisory Notes to 
                Category 5 of the Commerce Control List set forth in 
                part 799 of title 15, Code of Federal Regulations, as 
                of April 4, 1994, that indicate likelihood of 
                approval--
                            (i) for country groups QWY and the People's 
                        Republic of China,
                            (ii) only for the People's Republic of 
                        China, or
                            (iii) to specified destinations in country 
                        group Y; and
                    (B) those entries and subentries listed in export 
                control classification numbers 5AO2A (except subentries 
                h and i), 5A03A, 5A04A, 5A05A, 5A06A, 5B01A, 5B02A, 
                5C01A, 5D01A, 5D02A, and 5D03A of the Commerce Control 
                List set forth in part 799 of title 15, Code of Federal 
                Regulations, as of April 4, 1994, but not including 
                software designed or modified for the development, 
                production, or use of items controlled under export 
                control classification number 5A01A of the Commerce 
                Control List.
    [-(-c-)] (d) -C-o-m-p-u-t-e-r-s -a-n-d -R-e-l-a-t-e-d 
-E-q-u-i-p-m-e-n-t-.--
            -(-1-) -G-e-n-e-r-a-l -r-u-l-e-.----S-u-b-j-e-c-t -t-o 
        -p-a-r-a-g-r-a-p-h-s -(-2-) -a-n-d -(-3-)-, -t-h-e 
        -S-e-c-r-e-t-a-r-y -s-h-a-l-l -h-a-v-e -e-x-c-l-u-s-i-v-e 
        -a-u-t-h-o-r-i-t-y -t-o -c-o-n-t-r-o-l -e-x-p-o-r-t-s -o-f 
        -a-l-l -c-o-m-p-u-t-e-r -h-a-r-d-w-a-r-e-, -s-o-f-t-w-a-r-e-, 
        -a-n-d -t-e-c-h-n-o-l-o-g-y -f-o-r -i-n-f-o-r-m-a-t-i-o-n 
        -s-e-c-u-r-i-t-y -(-i-n-c-l-u-d-i-n-g -e-n-c-r-y-p-t-i-o-n-)-, 
        -e-x-c-e-p-t -t-h-a-t -w-h-i-c-h -i-s -s-p-e-c-i-f-i-c-a-l-l-y 
        -d-e-s-i-g-n-e-d -o-r -m-o-d-i-f-i-e-d -f-o-r -m-i-l-i-t-a-r-y 
        -u-s-e-, -i-n-c-l-u-d-i-n-g -c-o-m-m-a-n-d-, -c-o-n-t-r-o-l-, 
        -a-n-d -i-n-t-e-l-l-i-g-e-n-c-e -a-p-p-l-i-c-a-t-i-o-n-s-.
            -(-2-) -I-t-e-m-s -n-o-t -r-e-q-u-i-r-i-n-g 
        -l-i-c-e-n-s-e-s-.----N-o -v-a-l-i-d-a-t-e-d -l-i-c-e-n-s-e 
        -m-a-y -b-e -r-e-q-u-i-r-e-d-, -e-x-c-e-p-t -p-u-r-s-u-a-n-t 
        -t-o -t-h-e -T-r-a-d-i-n-g -W-i-t-h -T-h-e -E-n-e-m-y -A-c-t 
        -o-r -t-h-e -I-n-t-e-r-n-a-t-i-o-n-a-l -E-m-e-r-g-e-n-c-y 
        -E-c-o-n-o-m-i-c -P-o-w-e-r-s -A-c-t -(-b-u-t -o-n-l-y -t-o 
        -t-h-e -e-x-t-e-n-t -t-h-a-t -t-h-e -a-u-t-h-o-r-i-t-y -o-f 
        -s-u-c-h -A-c-t -i-s -n-o-t -e-x-e-r-c-i-s-e-d -t-o 
        -e-x-t-e-n-d -c-o-n-t-r-o-l-s -i-m-p-o-s-e-d -u-n-d-e-r 
        -t-h-i-s -t-i-t-l-e-)-, -f-o-r -t-h-e -e-x-p-o-r-t -o-f---
                    -(-A-) -a-n-y -s-o-f-t-w-a-r-e-, -i-n-c-l-u-d-i-n-g 
                -s-o-f-t-w-a-r-e -w-i-t-h -e-n-c-r-y-p-t-i-o-n 
                -c-a-p-a-b-i-l-i-t-i-e-s-, -t-h-a-t -i-s---
                            -(-i-) -g-e-n-e-r-a-l-l-y 
                        -a-v-a-i-l-a-b-l-e-, -a-s -i-s-, -a-n-d -i-s 
                        -d-e-s-i-g-n-e-d -f-o-r 
                        -i-n-s-t-a-l-l-a-t-i-o-n -b-y -t-h-e 
                        -p-u-r-c-h-a-s-e-r-; -o-r
                            -(-i-i-) -i-n -t-h-e -p-u-b-l-i-c 
                        -d-o-m-a-i-n -o-r -p-u-b-l-i-c-l-y 
                        -a-v-a-i-l-a-b-l-e -b-e-c-a-u-s-e -i-t -i-s 
                        -g-e-n-e-r-a-l-l-y -a-c-c-e-s-s-i-b-l-e -t-o 
                        -t-h-e -i-n-t-e-r-e-s-t-e-d -p-u-b-l-i-c -i-n 
                        -a-n-y -f-o-r-m-; -o-r
                    -(-B-) -a-n-y -c-o-m-p-u-t-i-n-g -d-e-v-i-c-e 
                -s-o-l-e-l-y -b-e-c-a-u-s-e -i-t 
                -i-n-c-o-r-p-o-r-a-t-e-s -o-r -e-m-p-l-o-y-s -i-n 
                -a-n-y -f-o-r-m -s-o-f-t-w-a-r-e -(-i-n-c-l-u-d-i-n-g 
                -s-o-f-t-w-a-r-e -w-i-t-h -e-n-c-r-y-p-t-i-o-n 
                -c-a-p-a-b-i-l-i-t-i-e-s-) -e-x-e-m-p-t-e-d -f-r-o-m 
                -a-n-y -r-e-q-u-i-r-e-m-e-n-t -f-o-r -a 
                -v-a-l-i-d-a-t-e-d -l-i-c-e-n-s-e -u-n-d-e-r 
                -s-u-b-p-a-r-a-g-r-a-p-h -(-A-)-.
            -(-3-) -S-o-f-t-w-a-r-e -w-i-t-h -e-n-c-r-y-p-t-i-o-n 
        -c-a-p-a-b-i-l-i-t-i-e-s-.----T-h-e -S-e-c-r-e-t-a-r-y 
        -s-h-a-l-l -a-u-t-h-o-r-i-z-e -t-h-e -e-x-p-o-r-t -o-f 
        -s-o-f-t-w-a-r-e -w-i-t-h -e-n-c-r-y-p-t-i-o-n 
        -c-a-p-a-b-i-l-i-t-i-e-s -f-o-r -c-i-v-i-l -e-n-d -u-s-e-s 
        -(-d-e-t-e-r-m-i-n-e-d -o-n -t-h-e -b-a-s-i-s -o-f -t-h-e 
        -c-r-i-t-e-r-i-a -d-e-s-c-r-i-b-e-d -i-n -s-e-c-t-i-o-n 
        -1-0-5-(-c-)-(-2-)-) -i-n -a-n-y -c-o-u-n-t-r-y -t-o -w-h-i-c-h 
        -e-x-p-o-r-t-s -o-f -s-o-f-t-w-a-r-e -o-f -s-i-m-i-l-a-r 
        -c-a-p-a-b-i-l-i-t-y -a-r-e -p-e-r-m-i-t-t-e-d -f-o-r -u-s-e 
        -b-y -f-i-n-a-n-c-i-a-l -i-n-s-t-i-t-u-t-i-o-n-s -n-o-t 
        -c-o-n-t-r-o-l-l-e-d -i-n -f-a-c-t -b-y -U-n-i-t-e-d 
        -S-t-a-t-e-s -p-e-r-s-o-n-s-, -u-n-l-e-s-s -t-h-e-r-e -i-s 
        -s-u-b-s-t-a-n-t-i-a-l -e-v-i-d-e-n-c-e -t-h-a-t -s-u-c-h 
        -s-o-f-t-w-a-r-e -w-i-l-l -b-e---
                    -(-A-) -d-i-v-e-r-t-e-d -t-o -a -m-i-l-i-t-a-r-y 
                -e-n-d -u-s-e -o-r -a-n -e-n-d -u-s-e 
                -s-u-p-p-o-r-t-i-n-g -i-n-t-e-r-n-a-t-i-o-n-a-l 
                -t-e-r-r-o-r-i-s-m-;
                    -(-B-) -m-o-d-i-f-i-e-d -f-o-r -a-n -e-n-d -u-s-e 
                -d-e-s-c-r-i-b-e-d -i-n -s-u-b-p-a-r-a-g-r-a-p-h 
                -(-A-)-; -o-r
                    -(-C-) -r-e-e-x-p-o-r-t-e-d -w-i-t-h-o-u-t 
                -a-u-t-h-o-r-i-z-a-t-i-o-n -b-y -t-h-e -U-n-i-t-e-d 
                -S-t-a-t-e-s -t-h-a-t -i-s -r-e-q-u-i-r-e-d-.
            -(-4-) -D-e-f-i-n-i-t-i-o-n-s-.----A-s -u-s-e-d -i-n 
        -t-h-i-s -s-u-b-s-e-c-t-i-o-n---
                    -(-A-) -t-h-e -t-e-r-m -`-`-g-e-n-e-r-a-l-l-y 
                -a-v-a-i-l-a-b-l-e-'-' -m-e-a-n-s-, -i-n -t-h-e 
                -c-a-s-e -o-f -s-o-f-t-w-a-r-e -(-i-n-c-l-u-d-i-n-g 
                -s-o-f-t-w-a-r-e -w-i-t-h -e-n-c-r-y-p-t-i-o-n 
                -c-a-p-a-b-i-l-i-t-i-e-s-)-, -s-o-f-t-w-a-r-e -t-h-a-t 
                -i-s -o-f-f-e-r-e-d -f-o-r -s-a-l-e-, -l-i-c-e-n-s-e-, 
                -o-r -t-r-a-n-s-f-e-r -t-o -a-n-y -p-e-r-s-o-n 
                -w-i-t-h-o-u-t -r-e-s-t-r-i-c-t-i-o-n -t-h-r-o-u-g-h 
                -a-n-y -c-o-m-m-e-r-c-i-a-l -m-e-a-n-s-, 
                -i-n-c-l-u-d-i-n-g-, -b-u-t -n-o-t -l-i-m-i-t-e-d 
                -t-o-, -o-v-e-r---t-h-e---c-o-u-n-t-e-r -r-e-t-a-i-l 
                -s-a-l-e-s-, -m-a-i-l -o-r-d-e-r 
                -t-r-a-n-s-a-c-t-i-o-n-s-, -p-h-o-n-e -o-r-d-e-r 
                -t-r-a-n-s-a-c-t-i-o-n-s-, -e-l-e-c-t-r-o-n-i-c 
                -d-i-s-t-r-i-b-u-t-i-o-n-, -o-r -s-a-l-e -o-n 
                -a-p-p-r-o-v-a-l-;
                    -(-B-) -t-h-e -t-e-r-m -`-`-a-s -i-s-'-' 
                -m-e-a-n-s-, -i-n -t-h-e -c-a-s-e -o-f -s-o-f-t-w-a-r-e 
                -(-i-n-c-l-u-d-i-n-g -s-o-f-t-w-a-r-e -w-i-t-h 
                -e-n-c-r-y-p-t-i-o-n -c-a-p-a-b-i-l-i-t-i-e-s-)-, -a 
                -s-o-f-t-w-a-r-e -p-r-o-g-r-a-m -t-h-a-t -i-s -n-o-t 
                -d-e-s-i-g-n-e-d-, -d-e-v-e-l-o-p-e-d-, -o-r 
                -t-a-i-l-o-r-e-d -b-y -t-h-e -s-o-f-t-w-a-r-e 
                -c-o-m-p-a-n-y -f-o-r -s-p-e-c-i-f-i-c 
                -p-u-r-c-h-a-s-e-r-s-, -e-x-c-e-p-t -t-h-a-t -s-u-c-h 
                -p-u-r-c-h-a-s-e-r-s -m-a-y -s-u-p-p-l-y -c-e-r-t-a-i-n 
                -i-n-s-t-a-l-l-a-t-i-o-n -p-a-r-a-m-e-t-e-r-s 
                -n-e-e-d-e-d -b-y -t-h-e -s-o-f-t-w-a-r-e 
                -p-r-o-g-r-a-m -t-o -f-u-n-c-t-i-o-n -p-r-o-p-e-r-l-y 
                -w-i-t-h -t-h-e -p-u-r-c-h-a-s-e-r-'-s -c-o-m-p-u-t-e-r 
                -s-y-s-t-e-m -a-n-d -m-a-y -c-u-s-t-o-m-i-z-e -t-h-e 
                -s-o-f-t-w-a-r-e -p-r-o-g-r-a-m -b-y -c-h-o-o-s-i-n-g 
                -a-m-o-n-g -o-p-t-i-o-n-s -c-o-n-t-a-i-n-e-d -i-n 
                -t-h-e -s-o-f-t-w-a-r-e -p-r-o-g-r-a-m-;
                    -(-C-) -t-h-e -t-e-r-m -`-`-i-s -d-e-s-i-g-n-e-d 
                -f-o-r -i-n-s-t-a-l-l-a-t-i-o-n -b-y -t-h-e 
                -p-u-r-c-h-a-s-e-r-'-' -m-e-a-n-s-, -i-n -t-h-e 
                -c-a-s-e -o-f -s-o-f-t-w-a-r-e -(-i-n-c-l-u-d-i-n-g 
                -s-o-f-t-w-a-r-e -w-i-t-h -e-n-c-r-y-p-t-i-o-n 
                -c-a-p-a-b-i-l-i-t-i-e-s-) -t-h-a-t---
                            -(-i-) -t-h-e -s-o-f-t-w-a-r-e 
                        -c-o-m-p-a-n-y -i-n-t-e-n-d-s -f-o-r -t-h-e 
                        -p-u-r-c-h-a-s-e-r -(-i-n-c-l-u-d-i-n-g -a-n-y 
                        -l-i-c-e-n-s-e-e -o-r -t-r-a-n-s-f-e-r-e-e-)-, 
                        -w-h-o -m-a-y -n-o-t -b-e -t-h-e -a-c-t-u-a-l 
                        -u-s-e-r -o-f -t-h-e -s-o-f-t-w-a-r-e 
                        -p-r-o-g-r-a-m-, -t-o -i-n-s-t-a-l-l -t-h-e 
                        -s-o-f-t-w-a-r-e -p-r-o-g-r-a-m -o-n -a 
                        -c-o-m-p-u-t-i-n-g -d-e-v-i-c-e -a-n-d -h-a-s 
                        -s-u-p-p-l-i-e-d -t-h-e -n-e-c-e-s-s-a-r-y 
                        -i-n-s-t-r-u-c-t-i-o-n-s -t-o -d-o -s-o-, 
                        -e-x-c-e-p-t -t-h-a-t -t-h-e -c-o-m-p-a-n-y 
                        -m-a-y -a-l-s-o -p-r-o-v-i-d-e 
                        -t-e-l-e-p-h-o-n-e -h-e-l-p -l-i-n-e 
                        -s-e-r-v-i-c-e-s -f-o-r -s-o-f-t-w-a-r-e 
                        -i-n-s-t-a-l-l-a-t-i-o-n-, -e-l-e-c-t-r-o-n-i-c 
                        -t-r-a-n-s-m-i-s-s-i-o-n-, -o-r -b-a-s-i-c 
                        -o-p-e-r-a-t-i-o-n-s-; -a-n-d
                            -(-i-i-) -t-h-e -s-o-f-t-w-a-r-e 
                        -p-r-o-g-r-a-m -i-s -d-e-s-i-g-n-e-d -f-o-r 
                        -i-n-s-t-a-l-l-a-t-i-o-n -b-y -t-h-e 
                        -p-u-r-c-h-a-s-e-r -w-i-t-h-o-u-t 
                        -f-u-r-t-h-e-r -s-u-b-s-t-a-n-t-i-a-l 
                        -s-u-p-p-o-r-t -b-y -t-h-e -s-u-p-p-l-i-e-r-;
                    -(-D-) -t-h-e -t-e-r-m -`-`-c-o-m-p-u-t-i-n-g 
                -d-e-v-i-c-e-'-' -m-e-a-n-s -a -d-e-v-i-c-e -w-h-i-c-h 
                -i-n-c-o-r-p-o-r-a-t-e-s -o-n-e -o-r -m-o-r-e 
                -m-i-c-r-o-p-r-o-c-e-s-s-o-r---b-a-s-e-d -c-e-n-t-r-a-l 
                -p-r-o-c-e-s-s-i-n-g -u-n-i-t-s -t-h-a-t -c-a-n 
                -a-c-c-e-p-t-, -s-t-o-r-e-, -p-r-o-c-e-s-s -o-r 
                -p-r-o-v-i-d-e -o-u-t-p-u-t -o-f -d-a-t-a-; -a-n-d
                    -(-E-) -t-h-e -t-e-r-m -`-`-c-o-m-p-u-t-e-r 
                -h-a-r-d-w-a-r-e-'-'-, -w-h-e-n -u-s-e-d -i-n 
                -c-o-n-j-u-n-c-t-i-o-n -w-i-t-h -i-n-f-o-r-m-a-t-i-o-n 
                -s-e-c-u-r-i-t-y-, -i-n-c-l-u-d-e-s-, -b-u-t -i-s 
                -n-o-t -l-i-m-i-t-e-d -t-o-, -c-o-m-p-u-t-e-r 
                -s-y-s-t-e-m-s-, -e-q-u-i-p-m-e-n-t-, 
                -a-p-p-l-i-c-a-t-i-o-n---s-p-e-c-i-f-i-c 
                -a-s-s-e-m-b-l-i-e-s-, -m-o-d-u-l-e-s-, -a-n-d 
                -i-n-t-e-g-r-a-t-e-d -c-i-r-c-u-i-t-s-.
    (c) Assessment of Encryption Software Market.--
            (1) Presidential report required.--Not later than 150 days 
        after the date of enactment of this Act, the President shall 
        submit a report to the Committee on Banking, Housing, and Urban 
        Affairs of the Senate and the Committee on Foreign Affairs of 
        the House of Representatives.
            (2) Contents of report.--The report required by paragraph 
        (1) shall--
                    (A) assess the current and future international 
                market for computer software with encryption;
                    (B) assess the impact of United States encryption 
                export controls on the international competitiveness of 
                the United States computer software industry and their 
                economic consequences, including the impact on exports 
                and jobs in the United States computer software 
                industry; and
                    (C) review the types, quality and market 
                penetration of foreign produced encryption software 
                products and any controls that influence the 
                international marketability of encryption software 
                products.
            (3) Consultation.--In preparing the report required under 
        paragraph (1), the President shall consult with representatives 
        of the United States computer software industry. Confidential 
        business information provided by United States industry in the 
        course of preparing the report shall not be disclosed, except 
        with the permission of the submitter or when aggregated so that 
        the source of the information cannot be identified.
    [(d)] (e) In General.--To the extent provided in this title, this 
title shall be construed to modify, repeal, supersede, and otherwise 
affect the provisions of any other laws authorizing control over 
exports of any commodities or technology.
    [(e) Coordination of Controls.--The authority granted under this 
title and under section 38 of the Arms Export Control Act (22 U.S.C. 
2778) shall be exercised in such a manner as to share information 
regarding the trustworthiness of parties.
    [(f) Civil Aircraft Equipment.--Notwithstanding any other provision 
of law, any civil aircraft product, or any technology used in a civil 
aircraft product, that is standard equipment certified or scheduled to 
be certified by the Federal Aviation Administration and is an integral 
part of such aircraft, shall be subject to export controls exclusively 
under this title.]
    (f) Civil Aircraft Equipment.--Notwithstanding any other provision 
of law, any civil aircraft product that is standard equipment certified 
by the Federal Aviation Administration and is an integral part of such 
aircraft shall be subject to export controls exclusively under this 
title.
    (g) Nonproliferation Controls.--The provisions of section 109 shall 
supersede the procedures published pursuant to section 309(c) of the 
Nuclear Non-Proliferation Act of 1978 (42 U.S.C. 2139a(c)) to the 
extent such procedures are inconsistent with the provisions of section 
109.
    (h) Amendments to the International Emergency Economic Powers 
Act.--
            (1) Presidential authorization.--Section 203(a) of the 
        International Emergency Economic Powers Act (50 U.S.C. 1702(a)) 
        is amended--
                    (A) by redesignating paragraphs (2) and (3) as 
                paragraphs (3) and (4), respectively, and
                    (B) by inserting after paragraph (1) the following 
                new paragraph:
    ``(2) The President may prohibit or curtail the exportation of any 
items on the United States Commodity Control Index that are subject to 
the jurisdiction of the United States under this title only to the 
extent provided in, and subject to the criteria of, sections 105, 106, 
and 114 of the Export Act of 1994, unless such prohibition or 
curtailment is part of an embargo (as described in section 106(f)(1) of 
the Export Act of 1994) against the country concerned. The preceding 
sentence shall continue to apply notwithstanding the expiration of the 
Export Act of 1994.''.
            (2) Confidentiality of information.--The International 
        Emergency Economic Powers Act is amended--
                    (A) by redesignating section 208 as section 209; 
                and
                    (B) by inserting after section 207 the following:

``SEC. 208. CONFIDENTIALITY OF INFORMATION.

    ``(a) Exemptions From Disclosure.--Information obtained under this 
title before or after the enactment of this section may be withheld 
only to the extent permitted by statute, except that information 
submitted, obtained, or considered in connection with an application 
for an export license or other export authorization under this title, 
including the export license or other export authorization itself, 
classification requests, information or evidence obtained in the course 
of any investigation, and information obtained or furnished under this 
title in connection with international agreements, treaties, or 
obligations shall be withheld from public disclosure unless the release 
of such information is determined by the Secretary to be in the 
national interest.
    ``(b) Information to Congress and GAO.--
            ``(1) In general.--Nothing in this title shall be construed 
        as authorizing the withholding of information from the Congress 
        or from the General Accounting Office.
            ``(2) Availability to the congress.--
                    ``(A) In general.--All information obtained at any 
                time under this title regarding the control of exports, 
                including any report or license application required 
                under this title, shall be made available to any 
                committee or subcommittee of Congress of appropriate 
                jurisdiction upon the request of the chairman or 
                ranking minority member of such committee or 
                subcommittee.
                    ``(B) Prohibition on further disclosure.--No 
                committee, subcommittee, or Member of Congress shall 
                disclose any information obtained under this title or 
                previous Acts regarding the control of exports which is 
                submitted on a confidential basis to the Congress under 
                subparagraph (A) unless the full committee to which the 
                information is made available determines that the 
                withholding of the information is contrary to the 
                national interest.
            ``(3) Availability to the gao.--
                    ``(A) In general.--Notwithstanding paragraph (1), 
                information referred to in paragraph (2) shall, 
                consistent with the protection of intelligence, 
                counterintelligence, and law enforcement sources, 
                methods, and activities, as determined by the agency 
                that originally obtained the information, and 
                consistent with the provisions of section 716 of title 
                31, United States Code, be made available only by the 
                agency, upon request, to the Comptroller General of the 
                United States or to any officer or employee of the 
                General Accounting Office authorized by the Comptroller 
                General to have access to such information.
                    ``(B) Prohibition on further disclosures.--No 
                officer or employee of the General Accounting Office 
                shall disclose, except to the Congress in accordance 
                with this subsection, any such information which is 
                submitted on a confidential basis and from which any 
                individual can be identified.
    ``(c) Penalties for Disclosure of Confidential Information.--Any 
officer or employee of the United States, or any department or agency 
thereof, who publishes, divulges, discloses, or makes known in any 
manner or to any extent not authorized by law any information that--
            ``(1) he or she obtains in the course of his or her 
        employment or official duties or by reason of any examination 
        or investigation made by, or report or record made to or filed 
        with, such department or agency, or officer or employee 
        thereof, and
            ``(2) is exempt from disclosure under this section,
shall be fined not more than $10,000, or imprisoned not more than 1 
year, or both, shall be removed from office or employment, and shall be 
subject to a civil penalty of not more than $1,000.''.
    [(i) Regulation of Export of Certain Commercial Communications 
Satellites and Associated Equipment.--
            [(1) Regulation solely under this title.--Notwithstanding 
        any other provision of law, the export of commercial 
        communications satellites, including any integral components of 
        such satellites, which are designed for civil applications, 
        including items necessary to achieve the ultimate orbit 
        location of such satellites, and associated ground and test 
        equipment, when exported as part of a satellite system for 
        purposes of launch, shall be regulated under this title. The 
        Secretary shall consult with the Secretary of Defense and the 
        Secretary of State to determine the satellites and components 
        to which this paragraph applies. The Secretary, in consultation 
        with the Secretary of State and the Secretary of Defense, shall 
        prohibit the unauthorized transfer of missile equipment, data, 
        or technology that are components of any such satellite which 
        is authorized for export.
            [(2) Amendment to arms export control act.--Section 38(a) 
        of the Arms Export Control Act (22 U.S.C. 2778(a)) is amended--
                    [(A) in paragraph (3), by striking ``In exercising 
                the authorities'' and inserting ``Except as provided in 
                paragraph (4), in exercising the authorities''; and
                    [(B) by adding at the end the following new 
                paragraph:
    [``(4) The export of commercial communications satellites, 
including any integral components of such satellites, which are 
designed for civil applications, including items necessary to achieve 
the ultimate orbit location of such satellites, and associated ground 
and test equipment, when exported as part of a satellite system for 
purposes of launch, may be regulated only by the Secretary of Commerce 
under the Export Act of 1994, pursuant to section 117(i)(1) of that 
Act.''.
            [(3) Applicability.--The amendments made by this subsection 
        shall apply only with respect to the export of satellites on or 
        after the date of the enactment of this Act.]

SEC. 118. SECONDARY ARAB BOYCOTT.

    (a) Findings.--The Congress finds that--
            (1) certain countries maintain an economic boycott of 
        Israel, including a secondary boycott of companies that refuse 
        to cooperate with the economic boycott of Israel;
            (2) the secondary Arab boycott has caused economic damage 
        to the countries that maintain the boycott as well as to 
        Israel;
            (3) the secondary Arab boycott causes great difficulties 
        for United States firms that trade with Israel, depriving them 
        of trade opportunities and violating internationally accepted 
        principles of free trade;
            (4) the United States has a longstanding policy opposing 
        the Arab League boycott of Israel and United States law 
        prohibits American firms from providing information to Arab 
        countries to demonstrate compliance with the boycott;
            (5) American companies on the list maintained by the Arab 
        League of companies prohibited from doing business in Arab 
        League countries can be denied contracts by the Kuwaiti 
        Government for the reconstruction of Kuwait because they 
        conduct business with Israel;
            (6) under the leadership of the executive branch, the 
        United States has sent a clear, consistent, and unambiguous 
        message that the Arab League boycott of companies that do 
        business with Israel is an obstacle to peace and should be 
        terminated;
            (7) the United States Trade Representative, in August 1993, 
        commissioned the International Trade Commission to undertake a 
        study of the boycott's impact on United States businesses which 
        will provide, for the first time, a carefully researched 
        estimate of the impact of the boycott on the United States;
            (8) the executive branch has conducted an active diplomatic 
        campaign to convince Arab League countries that the time to end 
        the secondary Arab boycott and the economic discrimination 
        against United States businesses is now;
            (9) under United States leadership, the G-7 countries have 
        unconditionally called for an end to the Arab boycott;
            (10) the President, the Vice President, the Secretary of 
        State, the Secretary of Commerce, and other senior executive 
        branch officials have assured the Congress that they will speak 
        forcefully and candidly, in every forum which touches upon the 
        search for peace in the Middle East, about the need to end the 
        secondary Arab boycott;
            (11) the Congress wishes to support the efforts of the 
        executive branch and to help see the promises made to date 
        translated into tangible results;
            (12) the quarterly reports from the Office of Anti-Boycott 
        Compliance of the Department of Commerce show no loosening in 
        enforcement by Arab League countries of the secondary Arab 
        boycott; and
            (13) the recent statements made by Arab leaders indicating 
        that the secondary Arab boycott is no longer being enforced 
        must be translated into action, as measured by quarterly 
        reports from the Office of Anti-Boycott Compliance of the 
        Department of Commerce.
    (b) Sense of Congress.--
            (1) Ending secondary boycott.--It is the sense of the 
        Congress that the countries of the Arab League should end the 
        secondary Arab boycott.
            (2) Actions to end secondary boycott.--The United States 
        will consider the secondary Arab boycott to have ended when--
                    (A) the Arab League issues a public pronouncement 
                that the Arab League has ended the secondary Arab 
                boycott;
                    (B) all activities carried out by the Central 
                Office for the Boycott of Israel in support of the 
                secondary Arab boycott have been terminated;
                    (C) the Arab League and the individual countries 
                that are members of the Arab League have terminated the 
                practice of barring United States persons and foreign 
                companies that do not comply with the secondary Arab 
                boycott from doing business with countries that are 
                members of the Arab League, and have declared null and 
                void any existing list of such barred persons and 
                companies; and
                    (D) the Arab League, and the individual countries 
                that are the members of the Arab League, have ceased 
                requesting United States persons from taking actions 
                prohibited under section 108(a).
    (c) Definition.--For purposes of this section, the term ``secondary 
Arab boycott'' means the refusal to do business with persons who do not 
comply with requests to take any action prohibited under section 108(a) 
with respect to Israel.

SEC. 119. CONFORMING AMENDMENTS TO OTHER LAWS.

    (a) Arms Export Control Act.--
            (1) Section 38 of the Arms Export Control Act (22 U.S.C. 
        2778) is amended--
                    (A) in subsection (e)--
                            (i) in the first sentence by striking 
                        ``subsections (c)'' and all that follows 
                        through ``12 of such Act'' and inserting 
                        ``subsections (b), (c), (d) and (e) of section 
                        110 of the Export Act of 1994, by subsections 
                        (a) and (b) of section 113 of such Act, and by 
                        section 114(g) of such Act''; and
                            (ii) in the third sentence by striking 
                        ``11(c) of the Export Administration Act of 
                        1979'' and inserting ``110(c) of the Export Act 
                        of 1994''; and
                    (B) in subsection (g)(1)(A) by striking clause (ii) 
                and inserting the following:
                    ``(ii) section 110 of the Export Act of 1994,''.
            (2) Section 39A(c) of the Arms Export Control Act, as added 
        by the Foreign Relations Authorization Act, Fiscal Years 1994 
        and 1995, is amended--
                    (A) by striking ``(c),'' and all that follows 
                through ``12(a)'' and inserting ``(c), (d), and (e) of 
                section 110, section 112(c), and subsections (a) and 
                (b) of section 113, of the Export Act of 1994''; and
                    (B) by striking ``11(c)'' and inserting ``110(c)''.
            (3) Section 40(k) of the Arms Export Control Act (22 U.S.C. 
        2780(k)) is amended--
                    (A) by striking ``11(c), 11(e), 11(g), and 12(a) of 
                the Export Administration Act of 1979'' and inserting 
                ``110(b), 110(c), and 110(e) of the Export Act of 
                1994''; and
                    (B) by striking ``11(c)'' and inserting ``110(c)''.
            (4) Sections 72 and 73 of the Arms Export Control Act (22 
        U.S.C. 2797a and 2797b) are hereby repealed.
            (5) Section 73A of the Arms Export Control Act, as added by 
        the Foreign Relations Authorization Act, Fiscal Years 1994 and 
        1995, is amended by striking ``a MTCR adherent'' and inserting 
        ``an MTCR adherent''.
            (6) Section 74 of the Arms Export Control Act (22 U.S.C. 
        2797c) is amended--
                    (A) by striking paragraphs (6), (7), (8), and (9);
                    (B) in paragraph (4) by adding ``and'' after the 
                semicolon; and
                    (C) in paragraph (5) by striking the semicolon and 
                inserting a period.
    (b) Chemical and Biological Weapons.--The Chemical and Biological 
Weapons Control and Warfare Elimination Act of 1991 (title III of 
Public Law 102-182; 22 U.S.C. 5601 and following) is hereby repealed.
    (c) Other Provisions of Law.--
            (1) Section 5(b)(4) of the Trading with the Enemy Act (12 
        U.S.C. 95a(4); 50 U.S.C. App. 5(b)(4)) is amended by striking 
        ``5 of the Export Administration Act of 1979, or under section 
        6'' and inserting ``105 of the Export Act of 1994, or under 
        section 106''.
            (2) Section 16(a) of the Trading with the Enemy Act (50 
        U.S.C. App. 16(a)) is amended by striking ``participants'' and 
        inserting ``participates''.
            (3) Section 502B(a)(2) of the Foreign Assistance Act of 
        1961 (22 U.S.C. 2304(a)(2)) is amended in the second sentence--
                    (A) by striking ``Export Administration Act of 
                1979'' the first place it appears and inserting 
                ``Export Act of 1994''; and
                    (B) by striking ``Administration Act of 1979)'' and 
                inserting ``Act of 1994)''.
            (4)(A) Section 140(a)(2) of the Foreign Relations 
        Authorization Act, Fiscal Years 1988 and 1989 (22 U.S.C. 
        2656f(a)(2)) is amended by striking ``6(j) of the Export 
        Administration Act of 1979'' and inserting ``106(i) of the 
        Export Act of 1994''.
            (B) For purposes of the report required by March 31, 1995, 
        under section 140(a) of the Foreign Relations Authorization 
        Act, Fiscal Years 1988 and 1989, the reference in paragraph (2) 
        of such section to ``section 106(i) of the Export Act of 1994'' 
        shall be deemed to refer to ``section 6(j) of the Export 
        Administration Act of 1979 or section 106(i) of the Export Act 
        of 1994''.
            (5) Section 40(e)(1) of the State Department Basic 
        Authorities Act of 1956 (22 U.S.C. 2712(e)(1)) is amended by 
        striking ``6(j)(1) of the Export Administration Act of 1979'' 
        and inserting ``106(i)(1) of the Export Act of 1994''.
            (6) Section 110 of the International Security and 
        Development Cooperation Act of 1980 (22 U.S.C. 2778a) is 
        amended by striking ``Administration Act of 1979'' and 
        inserting ``Act of 1994''.
            (7) Section 205(d)(4) of the State Department Basic 
        Authorities Act of 1956 (22 U.S.C. 4305(d)(4)) is amended by 
        striking ``6(j) of the Export Administration Act of 1979'' and 
        inserting ``106(i) of the Export Act of 1994''.
            (8) Section 203(b)(3) of the International Emergency 
        Economic Powers Act (50 U.S.C. 1702(b)(3)) is amended by 
        striking ``5 of the Export Administration Act of 1979, or under 
        section 6'' and inserting ``105 of the Export Act of 1994, or 
        under section 106''.
            (9) Section 491(f) of the Forest Resources Conservation and 
        Shortage Relief Act of 1990 (16 U.S.C. 620c(f)) is amended by 
        striking ``supersede section 7(i) of the Export Administration 
        Act of 1979 (50 U.S.C. App. 2406(i))'' and inserting ``affect 
        section 107(i) of the Export Act of 1994''.

SEC. 120. EFFECTIVE DATE.

    This title shall take effect upon the expiration of the Export 
Administration Act of 1979.

SEC. 121. EXPIRATION DATE.

    This title expires on June 30, 1998.

SEC. 122. SAVINGS PROVISIONS.

    (a) In General.--All delegations, rules, regulations, orders, 
determinations, licenses, or other forms of administrative action which 
have been made, issued, conducted, or allowed to become effective 
under--
            (1) the Export Control Act of 1949, the Export 
        Administration Act of 1969, or the Export Administration Act of 
        1979, or
            (2) those provisions of the Arms Export Control Act or the 
        Chemical and Biological Weapons Control and Warfare Elimination 
        Act of 1991 which are repealed and amended by section 119,
and are in effect at the time this title takes effect, shall continue 
in effect according to their terms until modified, superseded, set 
aside, or revoked under this title.
    (b) Administrative and Judicial Proceedings.--
            (1) Export administration act.--This title shall not affect 
        any administrative or judicial proceedings commenced or any 
        application for a license made, under the Export Administration 
        Act of 1979, which is pending at the time this title takes 
        effect. Any such proceedings, and any action on such 
        application, shall continue under the Export Administration Act 
        of 1979 as if that Act had not expired.
            (2) Other provisions of law.--This title shall not affect 
        any administrative or judicial proceedings commenced or any 
        application for a license made, under those provisions of the 
        Arms Export Control Act or the Chemical and Biological Weapons 
        Control and Warfare Elimination Act of 1991 which are repealed 
        and amended by section 119, if such proceedings or application 
        is pending at the time this title takes effect. Any such 
        proceedings, and any action on such application, shall continue 
        under those provisions as if those provisions had not been 
        amended or repealed by section 119.
    (c) Treatment of Certain Determinations.--Any determination with 
respect to the government of a foreign country under section 6(j) of 
the Export Administration Act of 1979, that is in effect at the time 
this title takes effect, shall, for purposes of this title or any other 
provision of law, be deemed to be made under section 106(i) of this Act 
until superseded by a determination under such section 106(i).

             TITLE II--NUCLEAR PROLIFERATION PREVENTION ACT

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Nuclear Proliferation Prevention 
Act of 1994''.

                  PART A--REPORTING ON NUCLEAR EXPORTS

SEC. 211. REPORTS TO CONGRESS.

    Section 601(a) of the Nuclear Non-Proliferation Act of 1978 (22 
U.S.C. 3281(a)) is amended--
            (1) in paragraph (4), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (5), by striking the period and inserting 
        a semicolon; and
            (3) by adding after paragraph (5) the following:
            ``(6) a description of the implementation of nuclear and 
        nuclear-related dual-use export controls in the preceding 
        calendar year, including a summary by type of commodity and 
        destination of--
                    ``(A) all transactions for which--
                            ``(i) an export license was issued for any 
                        good controlled under section 309(c) of this 
                        Act;
                            ``(ii) an export license was issued under 
                        section 109 b. of the 1954 Act;
                            ``(iii) approvals were issued under the 
                        Export Act of 1994, or section 109 b.(3) of the 
                        1954 Act, for the retransfer of any item, 
                        technical data, component, or substance; or
                            ``(iv) authorizations were made as required 
                        by section 57 b.(2) of the 1954 Act to engage, 
                        directly or indirectly, in the production of 
                        special nuclear material;
                    ``(B) each instance in which--
                            ``(i) a sanction has been imposed under 
                        section 221(a), 224(h), or 226(a) of the 
                        Nuclear Proliferation Prevention Act of 1994;
                            ``(ii) sales or leases have been denied 
                        under section 3(f) of the Arms Export Control 
                        Act or transactions prohibited by reason of 
                        acts relating to proliferation of nuclear 
                        explosive devices as described in section 40(d) 
                        of that Act;
                            ``(iii) a sanction has not been imposed by 
                        reason of section 221(c)(2) of the Nuclear 
                        Proliferation Prevention Act of 1994 or the 
                        imposition of a sanction has been delayed under 
                        section 226(d) of that Act; or
                            ``(iv) a waiver of a sanction has been made 
                        under--
                                    ``(I) section 221(f), section 224, 
                                or subsection (e) or (f)(2) of section 
                                226, of the Nuclear Proliferation 
                                Prevention Act of 1994,
                                    ``(II) section 620E(d) of the 
                                Foreign Assistance Act of 1961,
                                    ``(III) section 40(g) of the Arms 
                                Export Control Act with respect to the 
                                last sentence of section 40(d) of that 
                                Act, or
                                    ``(IV) section 614 of the Foreign 
                                Assistance Act of 1961 with respect to 
                                section 620E of that Act or section 
                                3(f), or the last sentence of section 
                                40(d), of the Arms Export Control Act; 
                                and
            ``(7) the progress of those independent states of the 
        former Soviet Union that are non-nuclear-weapon states and of 
        the Baltic states towards achieving the objective of applying 
        full scope safeguards to all their peaceful nuclear activities.
Portions of the information required by paragraphs (6) and (7) may be 
submitted in classified form, as necessary. Any such information that 
may not be published or disclosed under section 114(g)(1) of the Export 
Act of 1994 shall be submitted as confidential.''.

SEC. 212. EFFECTIVE DATE.

    The amendments made by this part shall take effect 60 days after 
the date of the enactment of this Act.

              PART B--SANCTIONS FOR NUCLEAR PROLIFERATION

SEC. 221. IMPOSITION OF SANCTIONS ON PERSONS ENGAGING IN EXPORT 
              ACTIVITIES THAT CONTRIBUTE TO PROLIFERATION.

    (a) Determination by the President.--
            (1) In general.--Except as provided in subsection (b)(2), 
        the President shall impose the sanctions described in 
        subsection (c) if the President determines in writing that, on 
        or after the effective date of this part, a foreign person or a 
        United States person has materially and with requisite 
        knowledge contributed, through the export from the United 
        States or any other country of any goods or technology (as 
        defined in section 231(2)), to the efforts by any individual, 
        group, or non-nuclear-weapon state to acquire unsafeguarded 
        special nuclear material or to use, develop, produce, 
        stockpile, or otherwise acquire any nuclear explosive device.
            (2) Persons against which the sanctions are to be 
        imposed.--The sanctions shall be imposed pursuant to paragraph 
        (1) on--
                    (A) the foreign person or United States person with 
                respect to which the President makes the determination 
                described in that paragraph;
                    (B) any successor entity to that foreign person or 
                United States person;
                    (C) any foreign person or United States person that 
                is a parent or subsidiary of that person if that parent 
                or subsidiary materially and with requisite knowledge 
                assisted in the activities which were the basis of that 
                determination; and
                    (D) any foreign person or United States person that 
                is an affiliate of that person if that affiliate 
                materially and with requisite knowledge assisted in the 
                activities which were the basis of that determination 
                and if that affiliate is controlled in fact by that 
                person.
            (3) Other sanctions available.--The sanctions which are 
        required to be imposed for activities described in this 
        subsection is in addition to any other sanction which may be 
        imposed for the same activities under any other provision of 
        law.
            (4) Definition.--For purposes of this subsection, the term 
        ``requisite knowledge'' means situations in which a person 
        ``knows'', as ``knowing'' is defined in section 104 of the 
        Foreign Corrupt Practices Act of 1977 (15 U.S.C. 78dd-2).
    (b) Consultation With and Actions by Foreign Government of 
Jurisdiction.--
            (1) Consultations.--If the President makes a determination 
        described in subsection (a)(1) with respect to a foreign 
        person, the Congress urges the President to initiate 
        consultations immediately with the government with primary 
        jurisdiction over that foreign person with respect to the 
        imposition of the sanctions pursuant to this section.
            (2) Actions by government of jurisdiction.--In order to 
        pursue such consultations with that government, the President 
        may delay imposition of the sanctions pursuant to this section 
        for up to 90 days. Following these consultations, the President 
        shall impose the sanctions unless the President determines and 
        certifies in writing to the Congress that that government has 
        taken specific and effective actions, including appropriate 
        penalties, to terminate the involvement of the foreign person 
        in the activities described in subsection (a)(1). The President 
        may delay the imposition of the sanctions for up to an 
        additional 90 days if the President determines and certifies in 
        writing to the Congress that that government is in the process 
        of taking the actions described in the preceding sentence.
            (3) Report to congress.--Not later than 90 days after 
        making a determination under subsection (a)(1), the President 
        shall submit to the Committee on Foreign Relations and the 
        Committee on Governmental Affairs of the Senate and the 
        Committee on Foreign Affairs of the House of Representatives a 
        report on the status of consultations with the appropriate 
        government under this subsection, and the basis for any 
        determination under paragraph (2) of this subsection that such 
        government has taken specific corrective actions.
    (c) Sanctions.--
            (1) Description of sanctions.--The sanctions to be imposed 
        pursuant to subsection (a)(1) are, except as provided in 
        paragraph (2) of this subsection, the following:
                    (A) The United States Government shall not procure, 
                or enter into any contract for the procurement of, any 
                goods or services from any person described in 
                subsection (a)(2).
                    (B) The importation into the United States of 
                products produced by any person described in subsection 
                (a)(2) shall be prohibited.
            (2) Exceptions.--The President shall not be required to 
        apply or maintain the sanctions under this section--
                    (A) in the case of procurement of defense articles 
                or defense services--
                            (i) under existing contracts or 
                        subcontracts, including the exercise of options 
                        for production quantities to satisfy 
                        requirements essential to the national security 
                        of the United States;
                            (ii) if the President determines in writing 
                        that the person or other entity to which the 
                        sanctions would otherwise be applied is a sole 
                        source supplier of the defense articles or 
                        services, that the defense articles or services 
                        are essential, and that alternative sources are 
                        not readily or reasonably available; or
                            (iii) if the President determines in 
                        writing that such articles or services are 
                        essential to the national security under 
                        defense coproduction agreements;
                    (B) to products or services provided under 
                contracts entered into before the date on which the 
                President publishes his intention to impose the 
                sanctions;
                    (C) to--
                            (i) spare parts which are essential to 
                        United States products or production;
                            (ii) component parts, but not finished 
                        products, essential to United States products 
                        or production; or
                            (iii) routine servicing and maintenance of 
                        products, to the extent that alternative 
                        sources are not readily or reasonably 
                        available;
                    (D) to information and technology essential to 
                United States products or production; or
                    (E) to medical or other humanitarian items.
    (d) Advisory Opinions.--Upon the request of any person, the 
Secretary of State may, in consultation with the Secretary of Defense, 
issue in writing an advisory opinion to that person as to whether a 
proposed activity by that person would subject that person to the 
sanctions under this section. Any person who relies in good faith on 
such an advisory opinion which states that the proposed activity would 
not subject a person to such sanctions, and any person who thereafter 
engages in such activity, may not be made subject to such sanctions on 
account of such activity.
    (e) Termination of the Sanctions.--The sanctions imposed pursuant 
to this section shall apply for a period of at least 12 months 
following the imposition of the sanctions and shall cease to apply 
thereafter only if the President determines and certifies in writing to 
the Congress that--
            (1) reliable information indicates that the foreign person 
        or United States person with respect to which the determination 
        was made under subsection (a)(1) has ceased to aid or abet any 
        individual, group, or non-nuclear-weapon state in its efforts 
        to acquire unsafeguarded special nuclear material or any 
        nuclear explosive device, as described in that subsection; and
            (2) the President has received reliable assurances from the 
        foreign person or United States person, as the case may be, 
        that such person will not, in the future, aid or abet any 
        individual, group, or non-nuclear-weapon state in its efforts 
        to acquire unsafeguarded special nuclear material or any 
        nuclear explosive device, as described in subsection (a)(1).
    (f) Waiver.--
            (1) Criterion for waiver.--The President may waive the 
        application of the sanctions imposed on any person pursuant to 
        this section, after the end of the 12-month period beginning on 
        the date on which that sanctions was imposed on that person, if 
        the President determines and certifies in writing to the 
        Congress that the continued imposition of the sanctions would 
        have a serious adverse effect on vital United States interests.
            (2) Notification of and report to congress.--If the 
        President decides to exercise the waiver authority provided in 
        paragraph (1), the President shall so notify the Congress not 
        less than 20 days before the waiver takes effect. Such 
        notification shall include a report fully articulating the 
        rationale and circumstances which led the President to exercise 
        the waiver authority.

SEC. 222. ELIGIBILITY FOR ASSISTANCE.

    (a) Amendments to the Arms Export Control Act.--
            (1) Prohibition.--Section 3 of the Arms Export Control Act 
        (22 U.S.C. 2753) is amended by adding at the end the following 
        new subsection:
    ``(f) No sales or leases shall be made to any country that the 
President has determined is in material breach of its binding 
commitments to the United States under international treaties or 
agreements concerning the nonproliferation of nuclear explosive devices 
(as defined in section 231(4) of the Nuclear Proliferation Prevention 
Act of 1994) and unsafeguarded special nuclear material (as defined in 
section 231(8) of that Act).''.
            (2) Definition of support for international terrorism.--
        Section 40 of such Act (22 U.S.C. 2780) is amended--
                    (A) in subsection (d), by adding at the end the 
                following new sentence: ``For purposes of this 
                subsection, such acts shall include all activities that 
                the Secretary determines willfully aid or abet the 
                international proliferation of nuclear explosive 
                devices to individuals or group or willfully aid or 
                abet an individual or groups in acquiring unsafeguarded 
                special nuclear material.''; and
                    (B) in subsection (l)--
                            (i) in paragraph (2), by striking ``and'' 
                        after the semicolon;
                            (ii) in paragraph (3), by striking the 
                        period at the end and inserting a semicolon; 
                        and
                            (iii) by adding at the end the following:
            ``(4) the term `nuclear explosive device' has the meaning 
        given that term in section 231(4) of the Nuclear Proliferation 
        Prevention Act of 1994; and
            ``(5) the term `unsafeguarded special nuclear material' has 
        the meaning given that term in section 231(8) of the Nuclear 
        Proliferation Prevention Act of 1994.''.
    (b) Foreign Assistance Act of 1961.--
            (1) Presidential determination 82-7.-- Notwithstanding any 
        other provision of law, Presidential Determination No. 82-7 of 
        February 10, 1982, made pursuant to section 670(a)(2) of the 
        Foreign Assistance Act of 1961, shall have no force or effect 
        with respect to any grounds for the prohibition of assistance 
        under section 102(a) of the Arms Export Control Act arising on 
        or after the effective date of this part.
            (2) Amendment.--Section 620E(d) of the Foreign Assistance 
        Act of 1961 (22 U.S.C. 2375(d)) is amended to read as follows:
    ``(d) The President may waive the prohibitions of section 101 of 
the Arms Export Control Act with respect to any grounds for the 
prohibition of assistance under that section arising before the 
effective date of part B of the Nuclear Proliferation Prevention Act of 
1994 to provide assistance to Pakistan if he determines that to do so 
is in the national interest of the United States.''.

SEC. 223. ROLE OF INTERNATIONAL FINANCIAL INSTITUTIONS.

    (a) In General.--The Secretary of the Treasury shall instruct the 
United States executive director to each of the international financial 
institutions described in section 701(a) of the International Financial 
Institutions Act (22 U.S.C. 262d(a)) to use the voice and vote of the 
United States to oppose any use of the institution's funds to promote 
the acquisition of unsafeguarded special nuclear material or the 
development, stockpiling, or use of any nuclear explosive device by any 
non-nuclear-weapon state.
    (b) Duties of United States Executive Directors.--Section 701(b)(3) 
of the International Financial Institutions Act (22 U.S.C. 262d(b)(3)) 
is amended to read as follows:
            ``(3) whether the recipient country--
                    ``(A) is seeking to acquire unsafeguarded special 
                nuclear material (as defined in section 231(8) of the 
                Nuclear Proliferation Prevention Act of 1994) or a 
                nuclear explosive device (as defined in section 231(4) 
                of that Act);
                    ``(B) is not a State Party to the Treaty on the 
                Non-Proliferation of Nuclear Weapons; or
                    ``(C) has detonated a nuclear explosive device; 
                and''.

SEC. 224. PROHIBITION ON ASSISTING NUCLEAR PROLIFERATION THROUGH THE 
              PROVISION OF FINANCING.

    (a) Prohibited Activity Defined.--For purposes of this section, the 
term ``prohibited activity'' means the act of knowingly, materially, 
and directly contributing or attempting to contribute, through the 
provision of financing, to--
            (1) the acquisition of unsafeguarded special nuclear 
        material; or
            (2) the use, development, production, stockpiling, or other 
        acquisition of any nuclear explosive device,
by any individual, group, or non-nuclear-weapon state.
    (b) Prohibition.--To the extent that the United States has 
jurisdiction to prohibit such activity by such person, no United States 
person and no foreign person may engage in any prohibited activity.
    (c) Presidential Determination and Order With Respect to United 
States and Foreign Persons.--If the President determines, in writing 
after opportunity for a hearing on the record, that a United States 
person or a foreign person has engaged in a prohibited activity 
(without regard to whether subsection (b) applies), the President 
shall, by order, impose the sanctions described in subsection (d) on 
such person.
    (d) Sanctions.--The following sanctions shall be imposed pursuant 
to any order issued under subsection (c) with respect to any United 
States person or any foreign person:
            (1) Ban on dealings in government finance.--
                    (A) Designation as primary dealer.--Neither the 
                Board of Governors of the Federal Reserve System nor 
                the Federal Reserve Bank of New York may designate, or 
                permit the continuation of any prior designation of, 
                the person as a primary dealer in United States 
                Government debt instruments.
                    (B) Service as depositary.--The person may not 
                serve as a depositary for United States Government 
                funds.
            (2) Restrictions on operations.--The person may not, 
        directly or indirectly--
                    (A) commence any line of business in the United 
                States in which the person was not engaged as of the 
                date of the order; or
                    (B) conduct business from any location in the 
                United States at which the person did not conduct 
                business as of the date of the order.
    (e) Judicial Review.--Any determination of the President under 
subsection (c) shall be subject to judicial review in accordance with 
chapter 7 of part I of title 5, United States Code.
    (f) Consultation With and Actions by Foreign Government of 
Jurisdiction.--
            (1) Consultations.--If the President makes a determination 
        under subsection (c) with respect to a foreign person, the 
        Congress urges the President to initiate consultations 
        immediately with any appropriate foreign government with 
        respect to the imposition of any sanction pursuant to this 
        section.
            (2) Actions by government of jurisdiction.--
                    (A) Suspension of imposition of sanctions.--In 
                order to pursue consultations described in paragraph 
                (1) with any government referred to in such paragraph, 
                the President may delay, for up to 90 days, the 
                effective date of an order under subsection (c) 
                imposing any sanction.
                    (B) Coordination with activities of foreign 
                government.--Following consultations described in 
                paragraph (1), the order issued by the President under 
                subsection (c) imposing any sanction on a foreign 
                person shall take effect unless the President 
                determines, and certifies in writing to the Congress, 
                that the government referred to in paragraph (1) has 
                taken specific and effective actions, including the 
                imposition of appropriate penalties, to terminate the 
                involvement of the foreign person in any prohibited 
                activity.
                    (C) Extension of period.--After the end of the 
                period described in subparagraph (A), the President may 
                delay, for up to an additional 90 days, the effective 
                date of an order issued under subsection (c) imposing 
                any sanction on a foreign person if the President 
                determines, and certifies in writing to the Congress, 
                that the appropriate foreign government is in the 
                process of taking actions described in subparagraph 
                (B).
            (3) Report to congress.--Before the end of the 90-day 
        period beginning on the date on which an order is issued under 
        subsection (c), the President shall submit to the Congress a 
        report on--
                    (A) the status of consultations under this 
                subsection with the government referred to in paragraph 
                (1); and
                    (B) the basis for any determination under paragraph 
                (2) that such government has taken specific corrective 
                actions.
    (g) Termination of the Sanctions.--Any sanction imposed on any 
person pursuant to an order issued under subsection (c) shall--
            (1) remain in effect for a period of not less than 12 
        months; and
            (2) cease to apply after the end of such 12-month period 
        only if the President determines, and certifies in writing to 
        the Congress, that--
                    (A) the person has ceased to engage in any 
                prohibited activity; and
                    (B) the President has received reliable assurances 
                from such person that the person will not, in the 
                future, engage in any prohibited activity.
    (h) Waiver.--The President may waive the continued application of 
any sanction imposed on any person pursuant to an order issued under 
subsection (c) if the President determines, and certifies in writing to 
the Congress, that the continued imposition of the sanction would have 
a serious adverse effect on the safety and soundness of the domestic or 
international financial system or on domestic or international payments 
systems.
    (i) Enforcement Action.--The Attorney General may bring an action 
in an appropriate district court of the United States for injunctive 
and other appropriate relief with respect to--
            (1) any violation of subsection (b); or
            (2) any order issued under subsection (c).
    (j) Knowingly Defined.--
            (1) In general.--For purposes of this section, the term 
        ``knowingly'' means the state of mind of a person with respect 
        to conduct, a circumstance, or a result in which--
                    (A) such person is aware that such person is 
                engaging in such conduct, that such circumstance 
                exists, or that such result is substantially certain to 
                occur; or
                    (B) such person has a firm belief that such 
                circumstance exists or that such result is 
                substantially certain to occur.
            (2) Knowledge of the existence of a particular 
        circumstance.--If knowledge of the existence of a particular 
        circumstance is required for an offense, such knowledge is 
        established if a person is aware of a high probability of the 
        existence of such circumstance, unless the person actually 
        believes that such circumstance does not exist.
    (k) Scope of Application.--This section shall apply with respect to 
prohibited activities which occur on or after the date this part takes 
effect.

SEC. 225. EXPORT-IMPORT BANK.

    Section 2(b)(4) of the Export-Import Bank Act of 1945 (12 U.S.C. 
635(b)(4)) is amended in the first sentence by inserting after 
``device'' the following: ``(as defined in section 231(4) of the 
Nuclear Proliferation Prevention Act of 1994), or that any country has 
willfully aided or abetted any non-nuclear-weapon state (as defined in 
section 231(5) of that Act) to acquire any such nuclear explosive 
device or to acquire unsafeguarded special nuclear material (as defined 
in section 231(8) of that Act)''.

SEC. 226. SANCTIONS AGAINST COUNTRIES INVOLVED IN TRANSFER OF NUCLEAR 
              WEAPONS OR DESIGN INFORMATION OR COMPONENTS.

    (a) Determination of the President.--Except as provided in 
subsections (d), (e), and (f), in the event that the President 
determines that any country, on or after the effective date of this 
part--
            (1) transfers to a non-nuclear-weapon state a nuclear 
        explosive device,
            (2) is a non-nuclear-weapon state and either--
                    (A) receives a nuclear explosive device, or
                    (B) detonates a nuclear explosive device,
            (3) transfers to a non-nuclear-weapon state any design 
        information or component which is determined by the President 
        to be important to, and known by the transferring country to be 
        intended by the recipient state for use in, the development or 
        manufacture of any nuclear explosive device, or
            (4) is a non-nuclear-weapon state and seeks and receives 
        any design information or component which is determined by the 
        President to be important to, and intended by the recipient 
        state for use in, the development or manufacture of any nuclear 
        explosive device,
then the President shall forthwith report to the Congress in writing 
his determination with respect to that country and shall forthwith 
impose the sanctions described in subsection (b) against that country.
    (b) Sanctions.--The sanctions referred to in subsection (a) are as 
follows:
            (1) The United States Government shall terminate assistance 
        to that country under the Foreign Assistance Act of 1961, 
        except for humanitarian assistance or food or other 
        agricultural commodities.
            (2) The United States Government shall--
                    (A) terminate sales to that country under the Arms 
                Export Control Act of any defense articles, defense 
                services, or design and construction services, and
                    (B) terminate and deny licenses for the export to 
                that country of any item on the United States Munitions 
                List.
            (3) The United States Government shall terminate all 
        foreign military financing for that country under the Arms 
        Export Control Act.
            (4) The United States Government shall deny to that country 
        any credit, credit guarantees, or other financial assistance by 
        any department, agency, or instrumentality of the United States 
        Government, except that the sanction of this paragraph shall 
        not apply--
                    (A) to any transaction subject to the reporting 
                requirements of title V of the National Security Act of 
                1947 (relating to congressional oversight of 
                intelligence activities), or
                    (B) to humanitarian assistance.
            (5) The United States Government shall oppose, in 
        accordance with section 701 of the International Financial 
        Institutions Act (22 U.S.C. 262d), the extension of any loan or 
        financial or technical assistance to that country by any 
        international financial institution.
            (6) The United States Government shall prohibit any United 
        States bank from making any loan or providing any credit to the 
        government of that country, except for loans or credits for the 
        purpose of purchasing food or other agricultural commodities.
            (7) The authorities of section 106 of the Export Act of 
        1994 shall be used to prohibit exports to that country of 
        specific goods and technology (excluding food and other 
        agricultural commodities), except that such prohibition shall 
        not apply to any transaction subject to the reporting 
        requirements of title V of the National Security Act of 1947 
        (relating to congressional oversight of intelligence 
        activities).
            ((8) In addition to the sanctions provided for in 
        paragraphs (1) through (7), the President may prohibit the 
        importation into the United States of goods that are the 
        growth, product, or manufacture of that country. The President 
        shall determine the type and volume of imports to be 
        prohibited.)
    (c) Definitions.--As used in this section--
            (1) the term ``design information'' means specific 
        information that relates to the design of a nuclear explosive 
        device and that is not available to the public; and
            (2) the term ``component'' means a specific component of a 
        nuclear explosive device.
    (d) Authority to Delay Sanctions Relating to Nuclear Explosive 
Devices.--
            (1) Presidential certification.--Notwithstanding subsection 
        (a), the President may, for a period of not more than 30 days 
        of continuous session, delay the imposition of sanctions which 
        would otherwise be required under subsection (a)(1) or (2) if 
        the President first transmits to the Speaker of the House of 
        Representatives, and to the chairman of the Committee on 
        Foreign Relations of the Senate, a certification that he has 
        determined that an immediate imposition of sanctions on that 
        country would be detrimental to the national security of the 
        United States. Not more than one such certification may be 
        transmitted for a country with respect to the same detonation, 
        transfer, or receipt of a nuclear explosive device.
            (2) Authority to grant waiver.--(A) If the President 
        transmits a certification to the Congress under paragraph (1), 
        a joint resolution which would permit the President to exercise 
        the waiver authority of subsection (e) shall, if introduced in 
        either House within 30 days of continuous session after the 
        Congress receives this certification, be considered in the 
        Senate in accordance with subparagraph (B).
            (B) Any joint resolution under this paragraph shall be 
        considered in the Senate in accordance with the provisions of 
        section 601(b) of the International Security Assistance and 
        Arms Export Control Act of 1976.
            (C) For purposes of this paragraph, the term ``joint 
        resolution'' means a joint resolution the matter after the 
        resolving clause of which is as follows: ``That the Congress 
        having received on ____ a certification by the President under 
        section 226(d)(1) of the Nuclear Proliferation Prevention Act 
        of 1994 with respect to ____, the Congress hereby authorizes 
        the President to exercise the waiver authority contained in 
        section 226(e) of that Act.'', with the date of receipt of the 
        certification inserted in the first blank and the name of the 
        country inserted in the second blank.
    (e) Waiver Authority.--Notwithstanding subsection (a), if the 
Congress enacts a joint resolution under subsection (d), the President 
may waive any sanction which would otherwise be required under 
subsection (a)(1) or (2) if he determines and certifies in writing to 
the Speaker of the House of Representatives and the Committee on 
Foreign Relations of the Senate that the imposition of such sanction 
would be seriously prejudicial to the achievement of United States 
nonproliferation objectives or otherwise jeopardize the common defense 
and security. The President shall transmit with such certification a 
statement setting forth the specific reasons therefor.
    (f) Sanctions Relating to Information and Components.--
            (1) Imposition.--In the event the President is required to 
        impose sanctions against a country under subsection (a)(3) or 
        (a)(4), the President shall forthwith so inform such country 
        and shall impose the required sanctions beginning 30 days after 
        submitting to the Congress the report required by subsection 
        (a) unless, and to the extent that, there is enacted during the 
        30-day period a law prohibiting the imposition of such 
        sanctions.
            (2) Waiver.--Notwithstanding any other provision of law, 
        the sanctions which are required to be imposed against a 
        country under subsection (a)(3) or (4) shall not apply if the 
        President determines and certifies in writing to the Committee 
        on Foreign Relations and the Committee on Governmental Affairs 
        of the Senate and the Committee on Foreign Affairs of the House 
        of Representatives that the application of such sanctions 
        against such country would have a serious adverse effect on 
        vital United States interests. The President shall transmit 
        with such certification a statement setting forth the specific 
        reasons therefor.
    (g) Continuity of Session.--For purposes of this section, 
continuity of session is broken only by an adjournment of the Congress 
sine die and the days on which either House of Congress is not in 
session because of an adjournment of more than three days to a day 
certain are excluded in the computation of any period of time in which 
the Congress is in continuous session.
    (h) Authority of the President Not Delegable.--The President may 
not delegate or transfer his power, authority, or discretion to make or 
modify determinations under this section.

SEC. 227. AMENDMENT TO THE ARMS EXPORT CONTROL ACT.

    (a) In General.--The Arms Export Control Act is amended by adding 
at the end the following new chapter:

            ``CHAPTER 10--NUCLEAR NONPROLIFERATION CONTROLS

``SEC. 101. NUCLEAR ENRICHMENT TRANSFERS.

    ``(a) Prohibitions; Safeguards and Management.--Except as provided 
in subsection (b), no funds made available to carry out the Foreign 
Assistance Act of 1961 or this Act may be used for the purpose of 
providing economic assistance (including assistance under chapter 4 of 
part II of the Foreign Assistance Act of 1961), providing military 
assistance or grant military education and training, providing 
assistance under chapter 6 of part II of that Act, or extending 
military credits or making guarantees, to any country which the 
President determines delivers nuclear enrichment equipment, materials, 
or technology to any other country on or after August 4, 1977, or 
receives such equipment, materials, or technology from any other 
country on or after August 4, 1977, unless before such delivery--
            ``(1) the supplying country and receiving country have 
        reached agreement to place all such equipment, materials, or 
        technology, upon delivery, under multilateral auspices and 
        management when available; and
            ``(2) the recipient country has entered into an agreement 
        with the International Atomic Energy Agency to place all such 
        equipment, materials, technology, and all nuclear fuel and 
        facilities in such country, under the safeguards system of such 
        Agency.
    ``(b) Certification by President of Necessity of Continued 
Assistance; Disapproval by Congress.--(1) Notwithstanding subsection 
(a), the President may furnish assistance which would otherwise be 
prohibited under such subsection if he determines and certifies in 
writing to the Speaker of the House of Representatives and the 
Committee on Foreign Relations of the Senate that--
            ``(A) the termination of such assistance would have a 
        serious adverse effect on vital United States interests; and
            ``(B) he has received reliable assurances that the country 
        in question will not acquire or develop nuclear weapons or 
        assist other nations in doing so.
Such certification shall set forth the reasons supporting such 
determination in each particular case.
    ``(2)(A) A certification under paragraph (1) shall take effect on 
the date on which the certification is received by the Congress. 
However, if, within 30 calendar days after receiving this 
certification, the Congress enacts a joint resolution stating in 
substance that the Congress disapproves the furnishing of assistance 
pursuant to the certification, then upon the enactment of that 
resolution the certification shall cease to be effective and all 
deliveries of assistance furnished under the authority of that 
certification shall be suspended immediately.
    ``(B) Any joint resolution under this paragraph shall be considered 
in the Senate in accordance with the provisions of section 601(b) of 
the International Security Assistance and Arms Export Control Act of 
1976.

``SEC. 102. NUCLEAR REPROCESSING TRANSFERS AND ILLEGAL EXPORTS FOR 
              NUCLEAR EXPLOSIVE DEVICES.

    ``(a) Prohibitions on Assistance to Countries Involved in Transfer 
of Nuclear Reprocessing Equipment, Materials, or Technology.--Except as 
provided in subsection (b), no funds made available to carry out the 
Foreign Assistance Act of 1961 or this Act may be used for the purpose 
of providing economic assistance (including assistance under chapter 4 
of part II of the Foreign Assistance Act of 1961), providing military 
assistance or grant military education and training, providing 
assistance under chapter 6 of part II of that Act, or extending 
military credits or making guarantees, to any country which the 
President determines--
            ``(1) delivers nuclear reprocessing equipment, materials, 
        or technology to any other country on or after August 4, 1977, 
        or receives such equipment, materials, or technology from any 
        other country on or after August 4, 1977 (except for the 
        transfer of reprocessing technology associated with the 
        investigation, under international evaluation programs in which 
        the United States participates, of technologies which are 
        alternatives to pure plutonium reprocessing), or
            ``(2) is a non-nuclear-weapon state which, on or after 
        August 8, 1985, exports illegally (or attempts to export 
        illegally) from the United States any material, equipment, or 
        technology which would contribute significantly to the ability 
        of such country to manufacture a nuclear explosive device, if 
        the President determines that the material, equipment, or 
        technology was to be used by such country in the manufacture of 
        a nuclear explosive device.
For purposes of paragraph (2), an export (or attempted export) by a 
person who is an agent of, or is otherwise acting on behalf of or in 
the interests of, a country shall be considered to be an export (or 
attempted export) by that country.
    ``(b) Exception.--(1) Notwithstanding subsection (a), the President 
in any fiscal year may furnish assistance which would otherwise be 
prohibited under that subsection if he determines and certifies in 
writing during that fiscal year to the Speaker of the House of 
Representatives and the Committee on Foreign Relations of the Senate 
that the termination of such assistance would be seriously prejudicial 
to the achievement of United States nonproliferation objectives or 
would otherwise jeopardize the common defense and security. The 
President shall transmit with such certification a statement setting 
forth the specific reasons therefor.
    ``(2)(A) A certification under paragraph (1) shall take effect on 
the date on which the certification is received by the Congress. 
However, if, within 30 calendar days after receiving this 
certification, the Congress enacts a joint resolution stating in 
substance that the Congress disapproves the furnishing of assistance 
pursuant to the certification, then upon the enactment of that 
resolution the certification shall cease to be effective and all 
deliveries of assistance furnished under the authority of that 
certification shall be suspended immediately.
    ``(B) Any joint resolution under this paragraph shall be considered 
in the Senate in accordance with the provisions of section 601(b) of 
the International Security Assistance and Arms Export Control Act of 
1976.

``SEC. 103. DEFINITION OF NUCLEAR EXPLOSIVE DEVICE.

    ``As used in this chapter, the term `nuclear explosive device' has 
the meaning given that term in section 231(4) of the Nuclear 
Proliferation Prevention Act of 1994.''.
    (b) Repeals.--Sections 669 and 670 of the Foreign Assistance Act of 
1961 are hereby repealed.
    (c) References in Law.--Any reference in law as of the effective 
date of this part to section 669 or 670 of the Foreign Assistance Act 
of 1961 shall, on and after such date, be deemed to be a reference to 
section 101 or 102 of the Arms Export Control Act, or section 226 of 
this Act, as the case may be.

SEC. 228. REWARD.

    Section 36(a) of the State Department Basic Authorities Act of 1956 
(22 U.S.C. 2708(a)) is amended--
            (1) by redesignating paragraphs (1) through (3) as 
        subparagraphs (A) through (C), respectively;
            (2) by inserting ``(1)'' after ``(a)''; and
            (3) by adding at the end the following:
    ``(2) For purposes of this subsection, the term `act of 
international terrorism' includes any act substantially contributing to 
the acquisition of unsafeguarded special nuclear material (as defined 
in section 231(8) of the Nuclear Proliferation Prevention Act of 1994) 
or any nuclear explosive device (as defined in section 231(4) of that 
Act) by an individual, group, or non-nuclear-weapon state (as defined 
in section 231(5) of that Act).''.

SEC. 229. REPORTS.

    (a) Content of ACDA Annual Report.--Section 51 of the Arms Control 
and Disarmament Act, as amended by section 717 of the Foreign Relations 
Authorization Act, Fiscal Years 1994 and 1995, is amended--
            (1) in subsection (a)--
                    (A) by striking ``and'' at the end of paragraph 
                (5);
                    (B) by striking the period at the end of paragraph 
                (6) and inserting ``; and''; and
                    (C) by adding after paragraph (6) the following new 
                paragraph:
            ``(7) a discussion of any material noncompliance by foreign 
        governments with their binding commitments to the United States 
        with respect to the prevention of the spread of nuclear 
        explosive devices (as defined in section 231(4) of the Nuclear 
        Proliferation Prevention Act of 1994) by non-nuclear-weapon 
        states (as defined in section 231(5) of that Act) or the 
        acquisition by such states of unsafeguarded special nuclear 
        material (as defined in section 231(8) of that Act), 
        including--
                    ``(A) a net assessment of the aggregate military 
                significance of all such violations;
                    ``(B) a statement of the compliance policy of the 
                United States with respect to violations of those 
                commitments; and
                    ``(C) what actions, if any, the President has taken 
                or proposes to take to bring any nation committing such 
                a violation into compliance with those commitments.''; 
                and
            (2) by adding at the end the following new subsection:
    ``(c) Reporting Consecutive Noncompliance.--If the President in 
consecutive reports submitted to the Congress under this section 
reports that any designated nation is not in full compliance with its 
binding nonproliferation commitments to the United States, then the 
President shall include in the second such report an assessment of what 
actions are necessary to compensate for such violations.''.
    (b) Reporting on Demarches.--(1) It is the sense of the Congress 
that the Department of State should, in the course of implementing its 
reporting responsibilities under section 602(c) of the Nuclear Non-
Proliferation Act of 1978, include a summary of demarches that the 
United States has issued or received from foreign governments with 
respect to activities which are of significance from the proliferation 
standpoint.
    (2) For purposes of this section, the term ``demarche'' means any 
official communication by one government to another, by written or oral 
means, intended by the originating government to express--
            (A) a concern over a past, present, or possible future 
        action or activity of the recipient government, or of a person 
        within the jurisdiction of that government, contributing to the 
        global spread of unsafeguarded special nuclear material or of 
        nuclear explosive devices;
            (B) a request for the recipient government to counter such 
        action or activity; or
            (C) both the concern and request described in subparagraphs 
        (A) and (B).

SEC. 230. TECHNICAL CORRECTION.

    Section 133 b. of the Atomic Energy Act of 1954 (42 U.S.C. 2160c) 
is amended by striking ``20 kilograms'' and inserting ``5 kilograms''.

SEC. 231. DEFINITIONS.

    For purposes of this part--
            (1) the term ``foreign person'' means--
                    (A) an individual who is not a citizen of the 
                United States or an alien admitted for permanent 
                residence to the United States; or
                    (B) a corporation, partnership, or other 
                nongovernment entity which is created or organized 
                under the laws of a foreign country or which has its 
                principal place of business outside the United States;
            (2) the term ``goods or technology'' means--
                    (A) nuclear materials and equipment and sensitive 
                nuclear technology (as such terms are defined in 
                section 4 of the Nuclear Non-Proliferation Act of 
                1978), all export items designated by the President 
                pursuant to section 309(c) of the Nuclear Non-
                Proliferation Act of 1978, and all technical assistance 
                requiring authorization under section 57 b. of the 
                Atomic Energy Act of 1954; and
                    (B) in the case of exports from a country other 
                than the United States, any goods or technology that, 
                if exported from the United States, would be goods or 
                technology described in subparagraph (A);
            (3) the term ``IAEA safeguards'' means the safeguards set 
        forth in an agreement between a country and the International 
        Atomic Energy Agency, as authorized by Article III(A)(5) of the 
        Statute of the International Atomic Energy Agency;
            (4) the term ``nuclear explosive device'' means any device, 
        whether assembled or disassembled, that is designed to produce 
        an instantaneous release of an amount of nuclear energy from 
        special nuclear material that is greater than the amount of 
        energy that would be released from the detonation of one pound 
        of trinitrotoluene (TNT);
            (5) the term ``non-nuclear-weapon state'' means any country 
        which is not a nuclear-weapon state, as defined by Article IX 
        (3) of the Treaty on the Non-Proliferation of Nuclear Weapons, 
        signed at Washington, London, and Moscow on July 1, 1968;
            (6) the term ``special nuclear material'' has the meaning 
        given that term in section 11 aa. of the Atomic Energy Act of 
        1954 (42 U.S.C. 2014aa);
            (7) the term ``United States person'' means--
                    (A) an individual who is a citizen of the United 
                States or an alien admitted for permanent residence to 
                the United States; or
                    (B) a corporation, partnership, or other 
                nongovernment entity which is not a foreign person; and
            (8) the term ``unsafeguarded special nuclear material'' 
        means special nuclear material which is held in violation of 
        IAEA safeguards or not subject to IAEA safeguards (excluding 
        any quantity of material that could, if it were exported from 
        the United States, be exported under a general license issued 
        by the Nuclear Regulatory Commission).

SEC. 232. EFFECTIVE DATE.

    The provisions of this part, and the amendments made by this part, 
shall take effect 60 days after the date of the enactment of this Act.

               PART C--INTERNATIONAL ATOMIC ENERGY AGENCY

SEC. 241. BILATERAL AND MULTILATERAL INITIATIVES.

    It is the sense of the Congress that in order to maintain and 
enhance international confidence in the effectiveness of IAEA 
safeguards and in other multilateral undertakings to halt the global 
proliferation of nuclear weapons, the United States should seek to 
negotiate with other nations and groups of nations, including the IAEA 
Board of Governors and the Nuclear Suppliers Group, to--
            (1) build international support for the principle that 
        nuclear supply relationships must require purchasing nations to 
        agree to full-scope international safeguards;
            (2) encourage each nuclear-weapon state within the meaning 
        of the Treaty to undertake a comprehensive review of its own 
        procedures for declassifying information relating to the design 
        or production of nuclear explosive devices and to investigate 
        any measures that would reduce the risk of such information 
        contributing to nuclear weapons proliferation;
            (3) encourage the deferral of efforts to produce weapons-
        grade nuclear material for large-scale commercial uses until 
        such time as safeguards are developed that can detect, on a 
        timely and reliable basis, the diversion of significant 
        quantities of such material for nuclear explosive purposes;
            (4) pursue greater financial support for the implementation 
        and improvement of safeguards from all IAEA member nations with 
        significant nuclear programs, particularly from those nations 
        that are currently using or planning to use weapons-grade 
        nuclear material for commercial purposes;
            (5) arrange for the timely payment of annual financial 
        contributions by all members of the IAEA, including the United 
        States;
            (6) pursue the elimination of international commerce in 
        highly enriched uranium for use in research reactors while 
        encouraging multilateral cooperation to develop and to use low-
        enriched alternative nuclear fuels;
            (7) oppose efforts by non-nuclear-weapon states to develop 
        or use unsafeguarded nuclear fuels for purposes of naval 
        propulsion;
            (8) pursue an international open skies arrangement that 
        would authorize the IAEA to operate surveillance aircraft and 
        would facilitate IAEA access to satellite information for 
        safeguards verification purposes;
            (9) develop an institutional means for IAEA member nations 
        to share intelligence material with the IAEA on possible 
        safeguards violations without compromising national security or 
        intelligence sources or methods;
            (10) require any exporter of a sensitive nuclear facility 
        or sensitive nuclear technology to a non-nuclear-weapon state 
        to notify the IAEA prior to export and to require safeguards 
        over that facility or technology, regardless of its 
        destination; and
            (11) seek agreement among the parties to the Treaty to 
        apply IAEA safeguards in perpetuity and to establish new limits 
        on the right to withdraw from the Treaty.

SEC. 242. IAEA INTERNAL REFORMS.

    In order to promote the early adoption of reforms in the 
implementation of the safeguards responsibilities of the IAEA, the 
Congress urges the President to negotiate with other nations and groups 
of nations, including the IAEA Board of Governors and the Nuclear 
Suppliers Group, to--
            (1) improve the access of the IAEA within nuclear 
        facilities that are capable of producing, processing, or 
        fabricating special nuclear material suitable for use in a 
        nuclear explosive device;
            (2)(A) facilitate the IAEA's efforts to meet and to 
        maintain its own goals for detecting the diversion of nuclear 
        materials and equipment, giving particular attention to 
        facilities in which there are bulk quantities of plutonium; and
            (B) if it is not technically feasible for the IAEA to meet 
        those detection goals in a particular facility, require the 
        IAEA to declare publicly that it is unable to do so;
            (3) enable the IAEA to issue fines for violations of 
        safeguards procedures, to pay rewards for information on 
        possible safeguards violations, and to establish a ``hot line'' 
        for the reporting of such violations and other illicit uses of 
        weapons-grade nuclear material;
            (4) establish safeguards at facilities engaged in the 
        manufacture of equipment or material that is especially 
        designated or prepared for the processing, use, or production 
        of special fissionable material or, in the case of non-nuclear-
        weapon states, of any nuclear explosive device;
            (5) establish safeguards over nuclear research and 
        development activities and facilities;
            (6) implement special inspections of undeclared nuclear 
        facilities, as provided for under existing safeguards 
        procedures, and seek authority for the IAEA to conduct 
        challenge inspections on demand at suspected nuclear sites;
            (7) expand the scope of safeguards to include tritium, 
        uranium concentrates, and nuclear waste containing special 
        fissionable material, and increase the scope of such safeguards 
        on heavy water;
            (8) revise downward the IAEA's official minimum amounts of 
        nuclear material (``significant quantity'') needed to make a 
        nuclear explosive device and establish these amounts as 
        national rather than facility standards;
            (9) expand the use of full-time resident IAEA inspectors at 
        sensitive fuel cycle facilities;
            (10) promote the use of near real time material accountancy 
        in the conduct of safeguards at facilities that use, produce, 
        or store significant quantities of special fissionable 
        material;
            (11) develop with other IAEA member nations an agreement on 
        procedures to expedite approvals of visa applications by IAEA 
        inspectors;
            (12) provide the IAEA the additional funds, technical 
        assistance, and political support necessary to carry out the 
        goals set forth in this subsection; and
            (13) make public the annual safeguards implementation 
        report of the IAEA, establishing a public registry of 
        commodities in international nuclear commerce, including dual-
        use goods, and creating a public repository of current nuclear 
        trade control laws, agreements, regulations, and enforcement 
        and judicial actions by IAEA member nations.

SEC. 243. REPORTING REQUIREMENT.

    (a) Report Required.--The President shall, in the report required 
by section 601(a) of the Nuclear Non-Proliferation Act of 1978, 
describe--
            (1) the steps he has taken to implement sections 241 and 
        242, and
            (2) the progress that has been made and the obstacles that 
        have been encountered in seeking to meet the objectives set 
        forth in sections 241 and 242.
    (b) Contents of Report.--Each report under paragraph (1) shall 
describe--
            (1) the bilateral and multilateral initiatives that the 
        President has taken during the period since the enactment of 
        this Act in pursuit of each of the objectives set forth in 
        sections 241 and 242;
            (2) any obstacles that have been encountered in the pursuit 
        of those initiatives;
            (3) any additional initiatives that have been proposed by 
        other countries or international organizations to strengthen 
        the implementation of IAEA safeguards;
            (4) all activities of the Federal Government in support of 
        the objectives set forth in sections 241 and 242;
            (5) any recommendations of the President on additional 
        measures to enhance the effectiveness of IAEA safeguards; and
            (6) any initiatives that the President plans to take in 
        support of each of the objectives set forth in sections 241 and 
        242.

SEC. 244. DEFINITIONS.

    As used in this part--
            (1) the term ``highly enriched uranium'' means uranium 
        enriched to 20 percent or more in the isotope U-235;
            (2) the term ``IAEA'' means the International Atomic Energy 
        Agency;
            (3) the term ``near real time material accountancy'' means 
        a method of accounting for the location, quantity, and 
        disposition of special fissionable material at facilities that 
        store or process such material, in which verification of 
        peaceful use is continuously achieved by means of frequent 
        physical inventories and the use of in-process instrumentation;
            (4) the term ``special fissionable material'' has the 
        meaning given that term by Article XX(1) of the Statute of the 
        International Atomic Energy Agency, done at the Headquarters of 
        the United Nations on October 26, 1956;
            (5) the term ``the Treaty'' means the Treaty on the Non-
        Proliferation of Nuclear Weapons, signed at Washington, London, 
        and Moscow on July 1, 1968; and
            (6) the terms ``IAEA safeguards'', ``non-nuclear-weapon 
        state'', ``nuclear explosive device'', and ``special nuclear 
        material'' have the meanings given those terms in section 231 
        of this Act.

                PART D--REPEAL OF DUPLICATIVE PROVISIONS

SEC. 251. REPEAL.

    Effective 60 days after the date of the enactment of this Act--
            (1) title VIII of the Foreign Relations Authorization Act, 
        Fiscal Years 1994 and 1995, the amendments made by that title, 
        and the items relating to such title in the table of contents 
        of that Act, are repealed; and
            (2) with respect to any provisions of law repealed by title 
        VIII of that Act, such title shall be deemed not to have been 
        enacted.

            Amend the title so as to read: ``A bill to provide 
        authority to control exports, and for other purposes.''.
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                                                 Union Calendar No. 304

103d CONGRESS

  2d Session

                               H. R. 3937

             [Report No. 103-531, Parts I, II, III, and IV]

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                                 A BILL

          Entitled the ``Export Administration Act of 1994''.

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                             June 17, 1994

    Committees on the Judiciary and Public Works and Transportation 
discharged; committed to the Committee of the Whole House on the State 
                of the Union, and ordered to be printed