[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2581 Reported in House (RH)]



                                                 Union Calendar No. 212
107th CONGRESS
  2d Session
                                H. R. 2581

                  [Report No. 107-297, Parts I and II]

    To provide authority to control exports, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 20, 2001

  Mr. Gilman introduced the following bill; which was referred to the 
Committee on International Relations, and in addition to the Committee 
on Rules, for a period to be subsequently determined by the Speaker, in 
   each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

                           November 16, 2001

    Reported from the Committee on International Relations with an 
                               amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                           November 16, 2001

Referral to the Committee on Rules extended for a period not later than 
                            December 7, 2001

                           November 16, 2001

 Referred to the Committees on Agriculture, Armed Services, Energy and 
   Commerce, the Judiciary, Ways and Means, and the Permanent Select 
 Committee on Intelligence for a period ending not later than December 
7, 2001, for consideration of such provisions of the bill and amendment 
as fall within the respective jurisdiction of those committees pursuant 
                     to clauses 1 and 11 of rule X

                            December 7, 2001

 Referral to the Committees on Agriculture, Armed Services, Energy and 
   Commerce, the Judiciary, Rules, Ways and Means, and the Permanent 
Select Committee on Intelligence extended for a period ending not later 
                         than December 15, 2001

                           December 14, 2001

 Referral to the Committees on Agriculture, Armed Services, Energy and 
   Commerce, the Judiciary, Rules, Ways and Means, and the Permanent 
Select Committee on Intelligence extended for a period ending not later 
                         than February 28, 2002

                           February 28, 2002

 Referral to the Committee on Agriculture, Armed Services, Energy and 
   Commerce, Rules, the Judiciary, Ways and Means, and the Permanent 
Select Committee on Intelligence extended for a period ending not later 
                           than March 8, 2002

                             March 8, 2002

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

                             March 8, 2002

  The Committees on Agriculture, Energy and Commerce, the Judiciary, 
     Rules, Ways and Means, and the Permanent Select Committee on 
Intelligence 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 July 
                               20, 2001]

_______________________________________________________________________

                                 A BILL


 
    To provide authority to control exports, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Export 
Administration Act of 2001''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.

                       TITLE I--GENERAL AUTHORITY

Sec. 101. Commerce Control List.
Sec. 102. Delegation of authority.
Sec. 103. Public information; consultation requirements.
Sec. 104. Right of export.
Sec. 105. Export control advisory committees.
Sec. 106. President's Technology Export Council.
Sec. 107. Prohibition on charging fees.

              TITLE II--NATIONAL SECURITY EXPORT CONTROLS

                  Subtitle A--Authority and Procedures

Sec. 201. Authority for national security export controls.
Sec. 202. National Security Control List.
Sec. 203. Country tiers.
Sec. 204. Incorporated parts and components.
Sec. 205. Petition process for modifying export status.
Sec. 206. Congressional review and report.

        Subtitle B--Foreign Availability and Mass-Market Status

Sec. 211. Determination of foreign availability and mass-market status.
Sec. 212. Presidential set-aside of foreign availability status 
                            determination.
Sec. 213. Presidential set-aside of mass-market status determination.
Sec. 214. Office of Technology Evaluation.
                 Subtitle C--High Performance Computers

Sec. 221. Exports of high performance computing technology.

               TITLE III--FOREIGN POLICY EXPORT CONTROLS

Sec. 301. Authority for foreign policy export controls.
Sec. 302. Procedures for imposing controls.
Sec. 303. Criteria for foreign policy export controls.
Sec. 304. Presidential report before imposition of control.
Sec. 305. Imposition of controls.
Sec. 306. Deferral authority.
Sec. 307. Review, renewal, and termination.
Sec. 308. Termination of controls under this title.
Sec. 309. Compliance with international obligations.
Sec. 310. Designation of countries supporting international terrorism.
Sec. 311. Crime control instruments.
Sec. 312. Measures to protect the public health.
Sec. 313. Promotion of safe environments.

   TITLE IV--PROCEDURES FOR EXPORT LICENSES AND INTERAGENCY DISPUTE 
                               RESOLUTION

Sec. 401. Export license procedures.
Sec. 402. Interagency dispute resolution process.

 TITLE V--INTERNATIONAL ARRANGEMENTS; FOREIGN BOYCOTTS; SANCTIONS; AND 
                              ENFORCEMENT

Sec. 501. International arrangements.
Sec. 502. Foreign boycotts.
Sec. 503. Penalties.
Sec. 504. Missile proliferation control violations.
Sec. 505. Chemical and biological weapons proliferation sanctions.
Sec. 506. Enforcement.
Sec. 507. Administrative procedure.

           TITLE VI--EXPORT CONTROL AUTHORITY AND REGULATIONS

Sec. 601. Export control authority and regulations.
Sec. 602. Confidentiality of information.
               <DELETED>TITLE VII--EXPORTS OF SATELLITES

<DELETED>Sec. 701. Applicability.
<DELETED>Sec. 702. Export controls on satellites and related items.
<DELETED>Sec. 703. Export license procedures.
<DELETED>Sec. 704. Mandatory State Department review.
<DELETED>Sec. 705. Definitions.
<DELETED>Sec. 706. Conforming amendments.
<DELETED>Sec. 707. Effective date.
<DELETED>Sec. 708. Effect on existing law.
 </DELETED>TITLE <DELETED>VIII</DELETED> VII--MISCELLANEOUS PROVISIONS

Sec. <DELETED>801</DELETED> 701. Annual report.
Sec. <DELETED>802</DELETED> 702. Relationship to the Arms Export 
                            Control Act.
Sec. <DELETED>803</DELETED> 703. Enhancement of congressional oversight 
                            of nuclear transfers to North Korea.
Sec. <DELETED>804</DELETED> 704. Procedures for consideration of joint 
                            resolutions.
Sec. <DELETED>805</DELETED> 705. Recommendations of the Judicial Review 
                            Commission on Foreign Asset Control.
Sec. <DELETED>806</DELETED> 706. Improvements to the automated export 
                            system.
Sec. <DELETED>807</DELETED> 707. Technical and conforming amendments.
Sec. <DELETED>808</DELETED> 708. Savings provisions.

SEC. 2. DEFINITIONS.

    Except as otherwise expressly provided, in this Act:
            (1) Affiliate.--The term ``affiliate'' includes both 
        governmental entities and commercial entities that are 
        controlled in fact by the government of a country.
            (2) Control or controlled.--The terms ``control'' and 
        ``controlled'' mean any requirement, condition, authorization, 
        or prohibition on the export or reexport of an item.
            (3) Control list.--The term ``Control List'' means the 
        Commerce Control List established under section 101.
            (4) Controlled country.--The term ``controlled country'' 
        means a country with respect to which exports are controlled 
        under section 201 or 301.
            (5) Controlled item.--The term ``controlled item'' means an 
        item the export of which is controlled under this Act.
            (6) Country.--The term ``country'' means a sovereign 
        country or an autonomous customs territory.
            (7) Country supporting international terrorism.--The term 
        ``country supporting international terrorism'' means a country 
        designated by the Secretary of State pursuant to section 310.
            (8) Department.--The term ``Department'' means the 
        Department of Commerce.
            (9) Export.--
                    (A) The term ``export'' means--
                            (i) an actual shipment, transfer, or 
                        transmission of an item out of the United 
                        States;
                            (ii) a transfer to any person of an item 
                        either within the United States or outside of 
                        the United States with the knowledge or intent 
                        that the item will be shipped, transferred, or 
                        transmitted to an unauthorized recipient 
                        outside the United States;
                        <DELETED>    (iii) the release of technology to 
                        a foreign national within the United States; 
                        or</DELETED>
                            (iii) the release of an item to a foreign 
                        national within or outside of the United 
                        States;
                            (iv) a transfer of an item in the United 
                        States to an embassy or affiliate of a country, 
                        which shall be considered an export to that 
                        country.
                    (B) The term includes a reexport.
            (10) Foreign availability status.--The term ``foreign 
        availability status'' means the status described in section 
        211(d)(1).
            (11) Foreign person.--The term ``foreign person'' means--
                    (A) an individual who is not--
                            (i) a United States citizen;
                            (ii) an alien lawfully admitted for 
                        permanent residence to the United States; or
                            (iii) a protected individual as defined in 
                        section 274B(a)(3) of the Immigration and 
                        Nationality Act. (8 U.S.C. 1324b(a)(3));
                    (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.
            (12) Item.--
                    (A) In general.--The term ``item'' means any good, 
                technology, or service.
                    (B) Other definitions.--In this paragraph:
                            (i) Good.--The term ``good'' means any 
                        article, natural or manmade substance, 
                        material, supply or manufactured product, 
                        including inspection and test equipment, 
                        including source code, and excluding technical 
                        data.
                        <DELETED>    (ii) Technology.--The term 
                        ``technology'' means specific information that 
                        is necessary for the development, production, 
                        or use of an item, and takes the form of 
                        technical data or technical 
                        assistance.</DELETED>
                            (ii) Technology.--The term ``technology'' 
                        means specific information, communicated by any 
                        means tangible or intangible, that is necessary 
                        for the design, development, production, or use 
                        of an item, including taking the form of 
                        technical data or technical assistance.
                            (iii) Service.--The term ``service'' means 
                        any act of assistance, help, or aid.
            (13) Mass-market status.--The term ``mass-market status'' 
        means the status described in section 211(d)(2).
            (14) Multilateral export control regime.--The term 
        ``multilateral export control regime'' means an international 
        agreement or arrangement among two or more countries, including 
        the United States, a purpose of which is to coordinate national 
        export control policies of its members regarding certain items. 
        The term includes regimes such as the Australia Group, the 
        Wassenaar Arrangement, the Missile Technology Control Regime 
        (MTCR), and the Nuclear Suppliers' Group Dual Use Arrangement.
            (15) National security control list.--The term ``National 
        Security Control List'' means the list established under 
        section 202(a).
            (16) Person.--The term ``person'' includes--
                    (A) any individual, or any partnership, 
                corporation, business association, society, trust, 
                organization, or any other group created or organized 
                under the laws of a country; and
                    (B) any government, or any governmental entity, 
                including any governmental entity operating as a 
                business enterprise.
            (17) Reexport.--The term ``reexport'' means the shipment, 
        transfer, transshipment, or diversion of items from one foreign 
        country to another.
            (18) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce.
            (19) 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 (42 U.S.C. 1331(a)).
            (20) United states person.--The term ``United States 
        person'' means--
                    (A) any United States citizen, resident, or 
                national (other than an individual resident outside the 
                United States who is employed by a person other than a 
                United States person);
                    (B) any domestic concern (including any permanent 
                domestic establishment of any foreign concern); and
                    (C) 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 prescribed by 
                the President.

                       TITLE I--GENERAL AUTHORITY

SEC. 101. COMMERCE CONTROL LIST.

    (a) In General.--Under such conditions as the Secretary may impose, 
consistent with the provisions of this Act, the Secretary--
            (1) shall establish and maintain a Commerce Control List 
        consisting of items the export of which are subject to 
        licensing or other authorization or requirement; and
            (2) may require any type of license, or other 
        authorization, including recordkeeping and reporting,  
appropriate to the effective and efficient implementation of this Act 
with respect to the export of an item on the Control List or otherwise 
subject to control under title II or III of this Act.
    (b) Types of License or Other Authorization.--The types of license 
or other authorization referred to in subsection (a)(2) include the 
following:
            (1) Specific exports.--A license that authorizes a specific 
        export.
            (2) Multiple exports.--A license that authorizes multiple 
        exports in lieu of a license for each export.
            (3) Notification in lieu of license.-- A notification in 
        lieu of a license that authorizes a specific export or multiple 
        exports subject to the condition that the exporter file with 
        the Department advance notification of the intent to export in 
        accordance with regulations prescribed by the Secretary.
            (4) License exception.--Authority to export an item on the 
        Control List without prior license or notification in lieu of a 
        license.
    (c) After-Market Service and Replacement Parts.--A license to 
export an item under this Act shall not be required for an exporter to 
provide after-market service or replacement parts in order to replace 
on a one-for-one basis parts that were in an item that was lawfully 
exported from the United States, unless--
            (1) the Secretary determines that such license is required 
        to export such parts; or
            (2) the after-market service or replacement parts would 
        materially enhance the capability of an item which was the 
        basis for the item being controlled.
    (d) Incidental Technology.--A license or other authorization to 
export an item under this Act includes authorization to export 
technology related to the item, if the level of the technology does not 
exceed the minimum necessary to install, repair, maintain, inspect, 
operate, or use the item.

SEC. 102. DELEGATION OF AUTHORITY.

    (a) In General.--Except as provided in subsection (b) and subject 
to the provisions of this Act, the President may delegate the power, 
authority, and discretion conferred upon the President by this Act to 
such departments, agencies, and officials of the Government as the 
President considers appropriate.
    (b) Exceptions.--
            (1) Delegation to appointees confirmed by senate.--No 
        authority delegated to the President under this Act may be 
        delegated by the President 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.
            (2) Other limitations.--The President may not delegate or 
        transfer the President's 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 Act.

SEC. 103. PUBLIC INFORMATION; CONSULTATION REQUIREMENTS.

    (a) Public Information.--The Secretary shall keep the public fully 
informed of changes in export control policy and procedures instituted 
in conformity with this Act.
    (b) Consultation With Persons Affected.--The Secretary shall 
consult regularly with representatives of a broad spectrum of 
enterprises, labor organizations, nonproliferation and national 
security experts, 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 or mass-market status of controlled 
items.

SEC. 104. RIGHT OF EXPORT.

    No license or other authorization to export may be required under 
this Act, or under regulations issued under this Act, except to carry 
out the provisions of this Act.

SEC. 105. EXPORT CONTROL ADVISORY COMMITTEES.

    (a) Appointment.--Upon the Secretary's 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 
Act or being considered for such controls, the Secretary may appoint 
export control advisory committees with respect to any such items. Each 
such committee shall consist of representatives of United States 
industry and Government officials, including officials from the 
Departments of Commerce, Defense, and State, and other appropriate 
departments and agencies of the Government. The Secretary shall permit 
the widest possible participation <DELETED>by the business community on 
the export control advisory committees</DELETED> on the export control 
advisory committees by nonproliferation and national security experts, 
and by the business community.
    (b) Functions.--
            (1) In general.--Export control advisory committees 
        appointed under subsection (a) shall advise and assist the 
        Secretary, and any other department, agency, or official of the 
        Government carrying out functions under this Act, on actions 
        (including all aspects of controls imposed or proposed) 
        designed to carry out the provisions of this Act concerning the 
        items with respect to which such export control advisory 
        committees were appointed.
            (2) Other consultations.--Nothing in paragraph (1) 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 control advisory committee. Members of the public shall 
        be given a reasonable opportunity, pursuant to regulations 
        prescribed by the Secretary, to present information to such 
        committees.
    (c) Reimbursement of Expenses.--Upon the request of any member of 
any export control advisory committee appointed under subsection (a), 
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.
    (d) Chairperson.--Each export control advisory committee appointed 
under subsection (a) 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 
section. 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 with each such committee on 
such termination or extension of that committee.
    (e) Access to Information.--To facilitate the work of the export 
control advisory committees appointed under subsection (a), the 
Secretary, in conjunction with other departments and agencies 
participating in the administration of this Act, shall disclose to each 
such committee adequate information, consistent with national security 
and intelligence sources and methods, 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. Information 
provided by the export control advisory committees shall not be subject 
to 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.

SEC. 106. PRESIDENT'S TECHNOLOGY EXPORT COUNCIL.

    The President may establish a President's Technology Export Council 
to advise the President on the implementation, operation, and 
effectiveness of this Act.

SEC. 107. PROHIBITION ON CHARGING FEES.

    No fee may be charged in connection with the submission or 
processing of an application for an export license under this Act.

              TITLE II--NATIONAL SECURITY EXPORT CONTROLS

                  Subtitle A--Authority and Procedures

SEC. 201. AUTHORITY FOR NATIONAL SECURITY EXPORT CONTROLS.

    (a) Authority.--
            (1) In general.--In order to carry out the purposes set 
        forth in subsection (b), the President may, in accordance with 
        the provisions of this Act, prohibit, curtail, or require a 
        license, or other authorization for the export of any item 
        subject to the jurisdiction of the United States or exported by 
        any person subject to the jurisdiction of the United States. 
        The President may also require recordkeeping and reporting with 
        respect to the export of such item.
            (2) Exercise of authority.--The authority contained in this 
        subsection shall be exercised by the Secretary, <DELETED>in 
        consultation with the Secretary of Defense, the Secretary of 
        State,</DELETED> with the concurrence of the Secretary of 
        Defense and in consultation with the Secretary of State, the 
        intelligence agencies, and the heads of such other departments 
        and agencies as the Secretary considers appropriate.
    (b) Purposes.--The purposes of national security export controls 
are the following:
            (1) To restrict the export of items that <DELETED>would</DELETED> 
        could contribute to the military potential of countries so as 
        to prove detrimental to the national security of the United 
        States, its allies, or countries sharing common strategic 
        objectives with the United States.
            (2) To stem the proliferation of weapons of mass 
        destruction, and the means to deliver them, and other 
        significant military capabilities by--
                    (A) leading international efforts to control the 
                proliferation of chemical and biological weapons, 
                nuclear explosive devices, missile delivery systems, 
                key-enabling technologies, and other significant 
                military capabilities;
                    (B) controlling involvement of United States 
                persons in, and contributions by United States persons 
                to, foreign programs intended to develop weapons of 
                mass destruction, missiles, and other significant 
                military capabilities, and the means to design, test, 
                develop, produce, stockpile, or use them; and
                    (C) implementing international treaties or other 
                agreements or arrangements concerning controls on 
                exports of designated items, reports on the production, 
                processing, consumption, and exports and imports of 
                such items, and compliance with verification programs.
        <DELETED>    (3) To deter acts of international 
        terrorism.</DELETED>
            (3) To restrict the export of items that could contribute 
        to acts of international terrorism so as to prove detrimental 
        to the national security of the United States, its allies, or 
        countries sharing common strategic objectives with the United 
        States.
    (c) End Use and End User Controls.--
            (1) General authority.--(A) Notwithstanding any other 
        provision of this Act, controls may be imposed, based on the 
        end use or end user, on the export of any item, that could 
        contribute to the proliferation of weapons of mass destruction 
        or the means to deliver them.
            (B) The President shall seek to strengthen multilateral 
        cooperation to identify more effectively end users of concern.
            (C) The Secretary shall establish and maintain a database 
        listing end users of concern and develop a procedure by which 
        exporters can utilize such database to screen prospective end 
        users.
            (2) Presumption of denial of certain licenses.--
        Notwithstanding any other provision of this Act, there shall be 
        a presumption of denial for the export of an item if the 
        Secretary, with the concurrence of the Secretary of Defense and 
        the Secretary of State, determines that there is a significant 
        risk that--
                    (A) the end user designated to receive such item is 
                involved in a program or activity for the design, 
                development, manufacture, stockpiling, testing, or 
                other acquisition of a weapon of mass destruction or 
                the means to deliver such a weapon and is in a country 
                that is not an adherent to a multilateral export 
                control regime controlling such weapon or means of 
                delivery, unless the Secretary, with the concurrence of 
                the Secretary of Defense and the Secretary of State, 
                and in consultation with the intelligence agencies and 
                the head of any other department or agency of the 
                United States that the Secretary considers appropriate, 
                determines that such export would not make a material 
                contribution to such program or activity; or
                    (B) the export of such item would otherwise 
                contribute to the military capabilities of a country so 
                as to undermine regional stability or otherwise prove 
                detrimental to the national security of the United 
                States, a NATO ally, or major non-NATO ally.
            (3) Definition.--For purposes of this subsection, an 
        ``adherent to a multilateral export control regime'' is--
                    (A) a country that is a member of a multilateral 
                export control regime;
                    (B) a country that, pursuant to an international 
                understanding to which the United States is a party, 
                controls exports in accordance with relevant criteria 
                and standards of a multilateral export control regime; 
                or
                    (C) a major non-NATO ally that, pursuant to its 
                national legislation, controls exports in accordance 
                with such criteria and standards.
    (d) Enhanced Control.--
            (1) In general.--Notwithstanding any other provision of 
        this title, the President may determine that applying the 
        provisions of section 204 or 211 with respect to an item on the 
        National Security Control List could constitute a threat to the 
        national security of the United States and that such item 
        requires enhanced control, including the requirement for a 
        license for such item. If the President determines that 
        enhanced control should apply to such item, the item may be 
        excluded from the provisions of sections 204 or 211, or both, 
        until such time as the President determines that enhanced 
        control should no longer apply to such item.
            (2) Control of items.--Notwithstanding any other provision 
        of this Act, the President may identify items to be included on 
        the National Security Control List, and any such item shall be 
        included on that list.
            (3) Nondelegation.--The President may not delegate the 
        authority provided under paragraphs (1) and (2).
            (4) Report to Congress.--The President shall promptly 
        report any determination described in paragraph (1) or any 
        items included on the National Security Control List under 
        paragraph (2), along with the specific reasons for that 
        determination or inclusion (as the case may be), to the 
        Committee on International Relations of the House of 
        Representatives and the Committee on Banking, Housing, and 
        Urban Affairs of the Senate.
    (e) Presumption of Denial on Certain Licenses.--
            (1) Presumption.--Notwithstanding any other provision of 
        law, when a license is required for export to any country of 
        any item on the National Security Control List for any reason 
        specified in subsection (b), there shall be a presumption of 
        denial for the export of such item if there is a significant 
        risk that--
                    (A) such item <DELETED>would</DELETED> could 
                contribute to the nuclear, chemical, or biological 
                weapons capabilities of such country or the 
                capabilities of such country to deliver such weapons;
                    (B) such item <DELETED>would</DELETED> could 
                otherwise contribute to the military capabilities of 
                such country so as to undermine regional stability or 
                otherwise prove detrimental to the national security of 
                the United States, a NATO ally, or major non-NATO ally;
                    (C) such item <DELETED>would</DELETED> could likely 
                be used or diverted to a use or destination not 
                authorized by the license or United States policy; or
                    (D) the export of such item <DELETED>would</DELETED> 
                could otherwise materially and adversely affect the 
                national security interests of the United States.
            (2) Exception.--Paragraph (1) shall not apply to the export 
        of an item to a country that is an adherent to a multilateral 
        export control regime controlling the export of such item.
            (3) Definition.--For purposes of this subsection, an 
        ``adherent to a multilateral export control regime'' is--
                    (A) a country that is a member of a multilateral 
                export control regime;
                    (B) a country that, pursuant to an international 
                understanding to which the United States is a party, 
                controls exports in accordance with relevant criteria 
                and standards of a multilateral export control regime; 
                or
                    (C) a major non-NATO ally that, pursuant to its 
                national legislation, controls exports in accordance 
                with such criteria and standards.

SEC. 202. NATIONAL SECURITY CONTROL LIST.

    (a) Establishment of List.--
            (1) Establishment.--The Secretary shall establish and 
        maintain a National Security Control List, as part of the 
        Control List.
            (2) Contents.--The National Security Control List shall be 
        composed of a list of items the export of which is controlled 
        for national security purposes under this title.
            (3) Identification of items for national security control 
        list.--The Secretary, with the concurrence of the Secretary of 
        Defense and the Secretary of State and in consultation with the 
        head of any other department or agency of the United States 
        that the Secretary considers appropriate, shall identify the 
        items to be included on the National Security Control List, 
        except that the National Security Control List shall, on the 
        date of enactment of this Act, include all of the items on the 
        Commerce Control List controlled on the day before the date of 
        enactment of this Act to protect the national security of the 
        United States, to prevent the proliferation of weapons of mass 
        destruction and the means to deliver them, and to deter acts of 
        international terrorism. The Secretary shall review on a 
        continuing basis and, with the concurrence of the Secretary of 
        Defense and the Secretary of State and in consultation with the 
        head of any other department or agency of the United States 
        that the Secretary considers appropriate, adjust the National 
        Security Control List to add items that require control under 
        this section and to remove items that no longer warrant control 
        under this section.
            (4) Militarily critical technologies list.--
                    (A) Establishment.--The Secretary of Defense shall 
                establish and maintain a Militarily Critical 
                Technologies List, which shall be part of the National 
                Security Control List.
                    (B) Contents.--The Militarily Critical Technologies 
                List shall be composed of a list of items that are, or 
                could be, critical to the United States military 
                maintaining or advancing its qualitative advantage and 
                superiority relative to other countries or potential 
                adversaries.
                    (C) Authority of the secretary of defense.--
                Notwithstanding any other provision of this Act, other 
                than section 201(d)(2), the Secretary of Defense shall 
                have sole authority for adding any item to or removing 
                any item from the Militarily Critical Technologies 
                List, regardless of whether that item is otherwise on 
                the Control List or otherwise controlled for export 
                under this Act.
                    (D) Licensing of militarily critical technologies 
                list items.--Items listed on the Militarily Critical 
                Technologies List shall not be approved for export 
                without the express consent of the Secretary of 
                Defense, unless the President determines otherwise 
                pursuant to section 402(b).
                    (E) Annual report.--The Secretary of Defense shall 
                report annually to the Committee on Armed Services of 
                the House of Representatives and the Committee on Armed 
                Services of the Senate on actions taken to carry out 
                this paragraph.
    (b) Risk Assessment.--
            (1) Requirement.--In establishing and maintaining the 
        National Security Control List as set forth in paragraphs (1), 
        (2), and (3) of subsection (a), the risk factors set forth in 
        paragraph (2) shall be considered, weighing national security 
        concerns and economic costs.
            (2) Risk factors.--The risk factors referred to in 
        paragraph (1), with respect to each item, are as follows:
                    (A) The characteristics of the item.
                    (B) The threat, if any, to the United States or the 
                national security interest of the United States from 
                the misuse or diversion of the item.
                    (C) The effectiveness of controlling the item for 
                national security purposes of the United States, taking 
                into account mass-market status, foreign availability, 
                and other relevant factors.
                    (D) The threat to the national security interests 
                of the United States if the item is not controlled.
                    (E) Any other appropriate risk factors.
    (c) Report on Control List.--Not later than 90 days after the date 
of enactment of this Act, the Secretary shall submit a report to 
Congress which lists all items on the Commerce Control List controlled 
on the day before the date of enactment of this Act to protect the 
national security of the United States, to prevent the proliferation of 
weapons  of mass destruction and the means to deliver them, and to 
deter acts of international terrorism, not included on the National 
Security Control List pursuant to the provisions of this Act.

SEC. 203. COUNTRY TIERS.

    (a) In General.--
            (1) Establishment and assignment.--In administering export 
        controls for national security purposes under this title, the 
        President shall, not later than 120 days after the date of 
        enactment of this Act--
                    (A) establish and maintain a country tiering system 
                in accordance with subsection (b); and
                    (B) based on the assessments required under 
                subsection (c), assign each country to an appropriate 
                tier for each item or group of items the export of 
                which is controlled for national security purposes 
                under this title.
            (2) Consultation.--The establishment and assignment of 
        country tiers under this section shall be made after 
        consultation with the Secretary, the Secretary of Defense, the 
        Secretary of State, the intelligence agencies, and the heads of 
        such other departments and agencies as the President considers 
        appropriate.
            (3) Redetermination and review of assignments.--The 
        President may redetermine the assignment of a country to a 
        particular tier at any time and shall review and, as the 
        President considers appropriate, reassign country tiers on an 
        on-going basis. The Secretary shall provide notice of any such 
        reassignment to the Committee on Banking, Housing, and Urban 
        Affairs of the Senate and the Committee on International 
        Relations of the House of Representatives.
            (4) Effective date of tier assignment.-- An assignment of a 
        country to a particular tier shall take effect on the date on 
        which notice of the assignment is published in the Federal 
        Register.
    (b) Tiers.--
            (1) In general.--The President shall establish a country 
        tiering system consisting of not less than 3 tiers for purposes 
        of this section.
            (2) Range.--Countries that represent the lowest risk of 
        diversion or misuse of an item on the National Security Control 
        List shall be assigned to the lowest tier. Countries that 
        represent the highest risk of diversion or misuse of an item on 
        the National Security Control List shall be assigned to the 
        highest tier.
            (3) Other countries.--Countries that fall between the 
        lowest and highest risk to the national security interest of 
        the United States with respect to the risk of diversion or 
        misuse of an item on the National Security Control List shall 
        be assigned to a tier other than the lowest or highest tier, 
        based on the assessments required under subsection (c).
            (4) Nondelegation.--The President may not delegate the 
        authorities he has under subsection (a) and this subsection.
    (c) Assessments.--The President shall make an assessment of each 
country in assigning a country tier taking into consideration risk 
factors that include the following:
            (1) The present and potential relationship of the country 
        with the United States.
            (2) The present and potential relationship of the country 
        with countries friendly to the United States and with countries 
        hostile to the United States.
            (3) The country's goals, capabilities, and intentions 
        regarding chemical, biological, and nuclear weapons and the 
        country's membership in or adherence to, and level of 
        compliance with, relevant multilateral export control regimes.
            (4) The country's capabilities regarding missile systems 
        and the country's membership in or adherence to, and level of 
        compliance with, relevant multilateral export control regimes.
            (5) Whether the country, if a NATO or major non-NATO ally 
        with whom the United States has entered into a free trade 
        agreement as of January 1, 1986, controls exports in accordance 
        with the criteria and standards of a multilateral export 
        control regime.
            (6) The country's other military capabilities and the 
        potential threat posed by the country to the United States or 
        its allies.
            (7) The effectiveness of the country's export control 
        system.
            (8) The level of the country's cooperation with United 
        States export control enforcement and other efforts.
            (9) The risk of export diversion by the country to a higher 
        tier country.
            (10) The designation of the country as a country supporting 
        international terrorism under section 310.
            (11) The extent to which the country, pursuant to its laws, 
        regulations, and practices, controls items consistent with the 
        criteria and standards of relevant multilateral export control 
        regimes.
    (d) Tier Application.--The country tiering system shall be used in 
the determination of license requirements pursuant to section 
201(a)(1).

SEC. 204. INCORPORATED PARTS AND COMPONENTS.

    (a) Export of Items Containing Controlled Parts and Components.--
Controls may not be imposed under this title or any other provision of 
law on an item solely because the item contains parts or components 
subject to export controls under this title, if the parts or 
components--
            (1) are essential to the functioning of the item,
            (2) are customarily included in sales of the item in 
        countries other than controlled countries, and
            (3) comprise 25 percent or less of the total value of the 
        item,
unless the item itself, if exported, would by virtue of the functional 
characteristics of the item as a whole make a significant contribution 
to the military or proliferation potential of a controlled country or 
end user which would prove detrimental to the national security of the 
United States, or unless failure to control the item would be contrary 
to the provisions of section 201(c), section 201(d), or section 309 of 
this Act.
    (b) Reexports of Foreign-Made Items Incorporating United States 
Controlled Content.--
            (1) In general.--No authority or permission may be required 
        under this title to reexport to a country an item that is 
        produced in a country other than the United States and 
        incorporates parts or components that are subject to the 
        jurisdiction of the United States, if the value of the 
        controlled United States content of the item produced in such 
        other country is 25 percent or less of the total value of the 
        item; except that in the case of reexports of an item to a 
        country designated as a country supporting international 
        terrorism pursuant to section 310, controls may be maintained 
        if the value of the controlled United States content is more 
        than 10 percent of the total value of the item.
            (2) Definition of controlled united states content.--For 
        purposes of this paragraph, the term ``controlled United States 
        content'' of an item means those parts or components that--
                    (A) are subject to the jurisdiction of the United 
                States;
                    (B) are incorporated into the item; and
                    (C) would, at the time of the reexport, require a 
                license under this title if exported from the United 
                States to a country to which the item is to be 
                reexported.

SEC. 205. PETITION PROCESS FOR MODIFYING EXPORT STATUS.

    (a) Establishment.--The Secretary shall establish a process for 
interested persons to petition the Secretary to change the status of an 
item on the National Security Control List.
    (b) Evaluations and Determinations.--Evaluations and determinations 
with respect to a petition filed pursuant to this section shall be made 
in accordance with section 202.

SEC. 206. CONGRESSIONAL REVIEW AND REPORT.

    (a) Notification.--The Secretary shall inform the appropriate 
committees of Congress at least 30 days before any change to the export 
status of an item on the National Security Control List (other than the 
Military Critical Technologies List) is made.
    (b) Report.--Upon the request of either the chairman or ranking 
member of any of the committees of Congress notified of a proposed 
change under subsection (a), the Secretary shall promptly provide to 
that committee a report that contains a clearly stated description of 
the proposed change, and the reasons why the change is justified and 
necessary. The report shall include in its entirety the assessment of 
the Secretary of Defense under subsection (c). The report may be 
provided on a classified basis if the Secretary considers it necessary.
    (c) Assessment.--The Secretary of Defense, in consultation with the 
Secretary of State and the Director of Central Intelligence, shall 
submit to the Secretary an assessment of the following with respect to 
a proposed change on which a report is requested under subsection (b):
            (1) The impact that the proposed change will have on the 
        national security of the United States with respect to the 
        purposes of export controls set forth in section 201(b).
            (2) The impact the proposed change will have on the United 
        States Armed Forces and the intelligence community.
            (3) The cumulative effects that the proposed change could 
        have on the national security of the United States, as well as 
        the military potential, proliferation activities, and support 
        for international terrorism by countries that may receive the 
        exported items with respect to which the proposed change would 
        apply.
    (d) Appropriate Committees.--For purposes of this section, the 
appropriate committees of Congress are the Committee on Armed Services 
and the Committee on International Relations of the House of 
Representatives, and the Committee on Foreign Relations, the Committee 
on Armed Services, and the Committee on Banking, Housing, and Urban 
Affairs of the Senate.

        Subtitle B--Foreign Availability and Mass-Market Status

SEC. 211. DETERMINATION OF FOREIGN AVAILABILITY AND MASS-MARKET STATUS.

    (a) In General.--The Secretary shall--
            (1) on a continuing basis,
            (2) upon a request from the Office of Technology Evaluation 
        established pursuant to section 214, or
            (3) upon receipt of a petition filed by an interested 
        person,
review <DELETED>and determine</DELETED> the foreign availability and 
the mass-market status of any item the export of which is controlled 
under this title.
    (b) Petition and Consultation.--
            (1) In general.--The Secretary shall establish a process 
        for an interested person to petition the Secretary for a 
        determination that an item has a foreign availability or mass-
        market status. In evaluating <DELETED>and making a 
        determination with respect to</DELETED> a petition filed under 
        this section, the Secretary shall consult with the Secretary of 
        Defense, the Secretary of State, and the heads of other 
        appropriate Government agencies and with the Office of 
        Technology Evaluation.
            (2) Time for making determination.--The Secretary, with the 
        concurrence of the Secretary of Defense and the Secretary of 
        State, shall, within 6 months after receiving a petition 
        described in subsection (a)(3), determine in accordance with 
        subsection (c) whether the item that is the subject of the 
        petition has foreign availability or mass-market status and 
        shall notify the petitioner of the determination.
    <DELETED>(c) Result of Determination.--In any case in which the 
Secretary determines,
</DELETED>    (c) Determination.--In any case in which the Secretary, 
with the concurrence of the Secretary of Defense and the Secretary of 
State, determines, in accordance with procedures and criteria which the 
Secretary shall by regulation establish, that an item described in 
subsection (a) has--
            (1) a foreign availability status, or
            (2) a mass-market status,
the Secretary shall notify the President (and other appropriate 
departments and agencies) and publish the notice of the determination 
in the Federal Register. The Secretary's determination shall become 
final 30 days after the date the notice is published, the item shall be 
removed from the National Security Control List, and a license or other 
authorization shall not be required under this title with respect to 
the item, unless the President makes a determination described in 
section 212 or 213, or takes action under section 309, with respect to 
the item in that 30-day period.
    (d) Criteria for Determining Foreign Availability and Mass-Market 
Status.--
        <DELETED>    (1) Foreign availability status.--The Secretary 
        shall determine that an item has foreign availability status 
        under this subtitle, if the item (or a substantially identical 
        or directly competitive item)--</DELETED>
                <DELETED>    (A) is available to controlled countries 
                from sources outside the United States, including 
                countries that participate with the United States in 
                multilateral export controls;</DELETED>
                <DELETED>    (B) can be acquired at a price that is not 
                excessive when compared to the price at which a 
                controlled country could acquire such item from sources 
                within the United States in the absence of export 
                controls; and</DELETED>
                <DELETED>    (C) is available in sufficient quantity so 
                that the requirement of a license or other 
                authorization with respect to the export of such item 
                is or would be ineffective.</DELETED>
            (1) Foreign availability status.--An item has foreign 
        availability status under this subtitle only if the item--
                    (A) is available to controlled countries without 
                restriction from sources outside the United States, 
                more than one of which are countries that participate 
                with the United States in multilateral export control 
                regimes as members; and
                    (B) is available in significant quantity and 
                comparable quality to the item produced in the United 
                States so that the requirement of a license or other 
                authorization with respect to the export of the item is 
or would be ineffective.
        <DELETED>    (2) Mass-market status.--</DELETED>
                <DELETED>    (A) In general.--In determining whether an 
                item has mass-market status under this subtitle, the 
                Secretary shall consider the following criteria with 
                respect to the item (or a substantially identical or 
                directly competitive item):</DELETED>
                        <DELETED>    (i) The production and 
                        availability for sale in a large volume to 
                        multiple potential purchasers.</DELETED>
                        <DELETED>    (ii) The widespread distribution 
                        through normal commercial channels, such as 
                        retail stores, direct marketing catalogues, 
                        electronic commerce, and other 
                        channels.</DELETED>
                        <DELETED>    (iii) The conduciveness to 
                        shipment and delivery by generally accepted 
                        commercial means of transport.</DELETED>
                        <DELETED>    (iv) The use for the item's normal 
                        intended purpose without substantial and 
                        specialized service provided by the 
                        manufacturer, distributor, or other third 
                        party.</DELETED>
                <DELETED>    (B) Determination by secretary.--If the 
                Secretary finds that the item (or a substantially 
                identical or directly competitive item) meets the 
                criteria set forth in subparagraph (A), the Secretary 
                shall determine that the item has mass-market 
                status.</DELETED>
            (2) Mass-market status.--An item has mass-market status 
        under this subtitle only if the following criteria are met:
                    (A) The item is produced in a large volume and is 
                available for sale to multiple potential purchasers.
                    (B) The item is widely distributed through normal 
                commercial channels, such as retail stores, direct 
                marketing catalogues, electronic commerce, and other 
                channels.
                    (C) The item is conducive to shipment and delivery 
                by generally accepted commercial means of transport.
                    (D) The item can be used for its normal intended 
                purpose without substantial and specialized service 
                provided by the manufacturer, distributor, or other 
                third party.
        <DELETED>    (3) Special rules.--For purposes of this 
        subtitle--</DELETED>
                <DELETED>    (A) Substantially identical item.--The 
                determination of whether an item in relation to another 
                item is a substantially identical item shall include a 
                fair assessment of end uses, and the properties, 
                nature, and quality of the item.</DELETED>
                <DELETED>    (B) Directly competitive item.--The 
                determination of whether an item in relation to another 
                item is a directly competitive item shall include a 
                fair assessment of whether the item, although not 
                substantially identical in its intrinsic or inherent 
                characteristics, is substantially equivalent for 
                commercial purposes and may be adapted for 
                substantially the same uses.</DELETED>
                <DELETED>    (C) Exception.--An item is not a directly 
                competitive item or a substantially identical item in 
                relation to a controlled item if the item is not of 
                comparable quality to the controlled item with respect 
                to characteristics that resulted in the export of the 
                item being controlled.</DELETED>

SEC. 212. PRESIDENTIAL SET-ASIDE OF FOREIGN AVAILABILITY STATUS 
              DETERMINATION.

    (a) Criteria for Presidential Set-Aside.--
            (1) General criteria.--
                    (A) In general.--If the President determines that--
                            (i) decontrolling or failing to control an 
                        item constitutes a threat to the national 
                        security of the United States, and export 
                        controls on the item would advance the national 
                        security interests of the United States,
                            (ii) there is a high probability that the 
                        foreign availability of an item will be 
                        eliminated through international negotiations 
                        within a reasonable period of time taking into 
                        account the characteristics of the item, or
                            (iii) United States controls on the item 
                        have been imposed under section 309,
                the President may set aside the Secretary's 
                determination of foreign availability status with 
                respect to the item.
                    (B) Nondelegation.--The President may not delegate 
                the authority provided for in this paragraph.
            (2) Report to congress.--The President shall promptly--
                    (A) report any set-aside determination described in 
                paragraph (1), along with the specific reasons for the 
                determination, to the Committee on Banking, Housing, 
                and Urban Affairs of the Senate and the Committee on 
                International Relations of the House of 
                Representatives; and
                    (B) publish the determination in the Federal 
                Register.
    (b) Presidential Action in Case of Set-Aside.--
            (1) In general.--
                    (A) Negotiations.--In any case in which export 
                controls are maintained on an item because the 
                President has made a determination under subsection 
                (a), the President shall actively pursue negotiations 
                with the governments of the appropriate foreign 
                countries for the purpose of eliminating such 
                availability.
                    (B) Report to congress.--Not later than the date 
                the President begins negotiations, the President shall 
                notify in writing the Committee on Banking, Housing, 
                and Urban Affairs of the Senate and the Committee on 
                International Relations 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.
            (2) Periodic review of determination.--The President shall 
        review a determination described in subsection (a) at least 
        every 6 months. Promptly after each review is completed, the 
        Secretary shall submit to the committees of Congress referred 
        to in paragraph (1)(B) a report on the results of the review, 
        together with the status of international negotiations to 
        eliminate the foreign availability of the item.
            (3) Expiration of presidential set-aside.--A determination 
        by the President described in subsection (a)(1)(A) (i) or (ii) 
        shall cease to apply with respect to an item on the earlier 
        of--
                    (A) the date that is 6 months after the date on 
                which the determination is made under subsection (a), 
                if the President has not commenced international 
                negotiations to eliminate the foreign availability of 
                the item within that 6-month period;
                    (B) the date on which the negotiations described in 
                paragraph (1) have terminated without achieving an 
                agreement to eliminate foreign availability;
                    (C) the date on which the President determines that 
                there is not a high probability of  eliminating foreign 
availability of the item through negotiation; or
                    (D) the date that is 18 months after the date on 
                which the determination described in subsection 
                (a)(1)(A) (i) or (ii) is made if the President has been 
                unable to achieve an agreement to eliminate foreign 
                availability within that 18-month period.
            (4) Action on expiration of presidential set-aside.--Upon 
        the expiration of a Presidential set-aside under paragraph (3) 
        with respect to an item, the Secretary shall not require a 
        license or other authorization to export the item.

SEC. 213. PRESIDENTIAL SET-ASIDE OF MASS-MARKET STATUS DETERMINATION.

    (a) Criteria for Presidential Set-Aside.--
            (1) General criteria.--If the President determines that--
                    (A)(i) decontrolling or failing to control an item 
                constitutes a serious threat to the national security 
                of the United States, and
                    (ii) export controls on the item would advance the 
                national security interests of the United States, or
                    (B) United States controls on the item have been 
                imposed under section 309,
        the President may set aside the Secretary's determination of 
        mass-market status with respect to the item.
            (2) Nondelegation.--The President may not delegate the 
        authority provided for in this subsection.
    (b) Presidential Action in Case of Set-Aside.--
            (1) In general.--In any case in which export controls are 
        maintained on an item because the President has made a 
        determination under subsection (a), the President shall 
        promptly report the determination, along with the specific 
        reasons for the determination, to the Committee on Banking, 
        Housing, and Urban Affairs of the Senate and the Committee on 
        International Relations of the House of Representatives, and 
        shall publish notice of the determination in the Federal 
        Register not later than 30 days after the Secretary publishes 
        notice of the Secretary's determination that an item has mass-
        market status.
            (2) Periodic review of determination.--The President shall 
        review a determination made under subsection (a) at least every 
        6 months. Promptly after each review is completed, the 
        Secretary shall submit a report on the results of the review to 
        the Committee on Banking, Housing, and Urban Affairs of the 
        Senate and the Committee on International Relations of the 
        House of Representatives.

SEC. 214. OFFICE OF TECHNOLOGY EVALUATION.

    (a) In General.--
            (1) Establishment of office.--The Secretary shall establish 
        in the Department of Commerce an Office of Technology 
        Evaluation (in this section referred to as the ``Office''), 
        which shall be under the direction of the Secretary. The Office 
        shall be responsible for gathering, coordinating, and analyzing 
        all the necessary information in order for the Secretary to 
        make determinations of foreign availability and mass-market 
        status under this Act.
            (2) Staff.--
                    (A) In general.--The Secretary shall ensure that 
                the Office include persons to carry out the 
                responsibilities set forth in subsection (b) of this 
                section that have training, expertise, and experience 
                in--
                            (i) economic analysis;
                            (ii) the defense industrial base;
                            (iii) technological developments; and
                            (iv) national security and foreign policy 
                        export controls.
                    (B) Detailees.--In addition to employees of the 
                Department of Commerce, the Secretary may accept on 
                nonreimbursable detail to the Office, employees of the 
                Departments of Defense, State, and Energy and other 
                departments and agencies as appropriate.
    (b) Responsibilities.--The Office shall be responsible for--
            (1) conducting foreign availability assessments to 
        determine whether a controlled item is available to controlled 
        countries and whether requiring a license, or denial of a 
        license for the export of such item, is or would be 
        ineffective;
            (2) conducting mass-market assessments to determine whether 
        a controlled item is available to controlled countries because 
        of the mass-market status of the item;
            (3) monitoring and evaluating worldwide technological 
        developments in industry sectors critical to the national 
        security interests of the United States to determine foreign 
        availability and mass-market status of controlled items;
            (4) monitoring and evaluating multilateral export control 
        regimes and foreign government export control policies and 
        practices that affect the national security interests of the 
        United States;
            (5) conducting assessments of United States industrial 
        sectors critical to the United States defense industrial base 
        and how the sectors are affected by technological developments, 
        technology transfers, and foreign competition; and
            (6) conducting assessments of the impact of United States 
        export control policies on--
                    (A) United States industrial sectors critical to 
                the national security interests of the United States; 
                and
                    (B) the United States economy in general.
    (c) Reports to Congress.--The Secretary shall make available to the 
Committee on International Relations of the House of Representatives 
and the Committee on Banking, Housing, and Urban Affairs of the Senate 
as part of the Secretary's annual report required under section 701 
information on the operations of the Office, and on improvements in the 
Government's ability to assess foreign availability and mass-market 
status, during the fiscal year preceding the report, including 
information on the training of personnel, and the use of Commercial 
Service Officers of the United States and Foreign Commercial Service to 
assist in making determinations. The information shall also include a 
description of determinations made under this Act during the preceding 
fiscal year that foreign availability or mass-market status did or did 
not exist (as the case may be), together with an explanation of the 
determinations.
    (d) 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, consistent with the need to 
protect intelligence sources and methods, furnish information to the 
Office concerning foreign availability and the mass-market status of 
items subject to export controls under this Act.

                 Subtitle C--High Performance Computers

SEC. 221. EXPORTS OF HIGH PERFORMANCE COMPUTING TECHNOLOGY.

    (a) Joint Process.--The Secretary, the Secretary of State, the 
Secretary of Defense, and the Secretary of Energy shall jointly develop 
and implement a process that would permit the United States to monitor 
effectively the export of high performance computing technology to 
countries of proliferation concern. Such a process shall include, at a 
minimum, the following:
            (1) A definition of high performance computing technology 
        and any associated performance metrics.
            (2) The ability to assess the proposed export of high 
        performance computing technology prior to its export and 
        possibly require a license for such export to end users or end 
        uses of concern.
            (3) The use of post-shipment verifications and other 
        procedures to monitor end uses and end users in order to ensure 
        that exports of high performance computing technology are not 
        being used by countries of proliferation concern in a manner 
        detrimental to the national security of the United States.
    (b) Report to Congress.--The President shall submit to the 
Congress, not later than 180 days after the date of the enactment of 
this Act, a report describing the process developed under subsection 
(a).
    (c) Implementation.--The process developed under subsection (a) 
shall first become effective 60 days after the end of the 180-day 
period described in subsection (b).
    (d) Repeal of Certain Export Controls.--Subtitle B of title XII of 
division A of the National Defense Authorization Act for Fiscal Year 
1998 (50 U.S.C. App. 2404 note) is repealed, effective 60 days after 
the end of the 180-day period described in subsection (b).
    (e) Inclusion of Items in Definition.--The definition of ``high 
performance computing technology'' under subsection (a)(1) shall 
include computer hardware, software, technical data, and source codes.
    (f) End Use Review.--
            (1) Notification.--Any United States person that exports a 
        computer with a dollar value of over $250,000, or any 
        equivalent metric developed pursuant to subsection (a), shall, 
        not less than 10 days before the item is exported, provide to 
        the Secretary a 1-page notification described in paragraph (2) 
        with respect to the export.
            (2) Content.--A notification under paragraph (1) with 
        respect to a proposed export shall include the following:
                    (A) A detailed description of the item to be 
                exported.
                    (B) Performance measures of the item to be 
                exported.
                    (C) The quantity and dollar value of the item to be 
                exported.
                    (D) The name, address, and telephone number of the 
                end user of the exported item.
                    (E) The end uses of the exported item.
            (3) Interagency review.--Within 24 hours after receiving a 
        notification under paragraph (1), the Secretary shall refer the 
        notification to the Director of Central Intelligence (in this 
        subsection referred to as the ``Director'') and the Secretary 
        of Defense. The Director and the Secretary of Defense shall 
        review the notification to determine whether the end user or 
        any end use of the item to be exported--
                    (A) could threaten the national security of the 
                United States;
                    (B) could contribute to the proliferation of 
                weapons of mass destruction or the means to deliver 
                them; or
                    (C) could assist foreign terrorist organizations in 
                performing acts of international terrorism.
            (4) Determination.--Within 7 calendar days after receiving 
        a notification under paragraph (3), the Director and the 
        Secretary of Defense shall inform the Secretary of any 
        determinations they made under paragraph (3) with respect to 
        the notification. If the Director or the Secretary of Defense 
        determines that a proposed export meets any of the criteria set 
        forth in subparagraphs (A), (B), and (C) of paragraph (3), the 
        Secretary shall immediately so notify the United States person 
        exporting the item.
            (5) Report.--The Secretary, with the concurrence of the 
        Secretary of Defense and the Director, shall report annually to 
        the Congress on the implementation of this subsection. The 
        report shall contain the number and type of determinations made 
        by the Director and the Secretary of Defense under paragraph 
        (3).
            (6) Effective date.--This subsection shall take effect 90 
        days after the date of the enactment of this Act.

               TITLE III--FOREIGN POLICY EXPORT CONTROLS

SEC. 301. AUTHORITY FOR FOREIGN POLICY EXPORT CONTROLS.

    (a) Authority.--
            (1) In general.--In order to carry out the purposes set 
        forth in subsection (b), the President may, in accordance with 
        the provisions of this Act, prohibit, curtail, or require a 
        license, other authorization, recordkeeping, or reporting for, 
        the export of any item 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.--The authority contained in this 
        subsection shall be exercised by the Secretary, in consultation 
        with the Secretary of State and such other departments and 
        agencies as the Secretary considers appropriate.
    (b) Purposes.--The purposes of foreign policy export controls are 
the following:
            (1) To promote the foreign policy objectives of the United 
        States, consistent with the purposes of this section and the 
        provisions of this Act.
            (2) To promote international peace, stability, and respect 
        for fundamental human rights.
            (3) To use export controls to deter and punish acts of 
        international terrorism and 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.
            (4) To control the export of test articles intended for 
        clinical investigation involving human subjects so as to foster 
        public health and safety and to prevent injury to the foreign 
        policy of the United States as well as to the credibility of 
        the United States as a responsible trading partner.
            (5) To control the export of goods and substances which are 
        banned, severely restricted, highly regulated, or never 
        regulated for use in the United States in order to foster 
        public health and safety and to prevent injury to the foreign 
        policy of the United States as well as to the credibility of 
        the United States as a responsible trading partner.
    (c) Foreign Products.--No authority or permission may be required 
under this title to reexport to a country an item that is produced in a 
country other than the United States and incorporates parts or 
components that are subject to the jurisdiction of the United States, 
except that in the case of reexports of an item to a country designated 
as a country supporting international terrorism pursuant to section 
310, controls may be maintained if the value of the controlled United 
States content is more than 10 percent of the value of the item.
    (d) Contract Sanctity.--
            (1) In general.--The President may not prohibit the export 
        of any item under this title if that item is to be exported--
                    (A) in performance of a binding contract, 
                agreement, or other contractual commitment entered into 
                before the earlier of the date on which the President 
                publishes in the Federal Register pursuant to section 
                302(a) a notice of intent to impose or implement an 
                export control on that item or the date on which the 
                President reports to Congress the President's intention 
                to impose an export control on that item under this 
                title; or
                    (B) under a license or other authorization issued 
                under this Act before the earlier of the date on which 
                the export control is imposed, the date on which the 
                President publishes in the Federal Register pursuant to 
                section 302(a) a notice of intent to impose or 
                implement an export control on that item, or the date 
                on which the President reports to Congress the 
                President's intention to impose an export control on 
                that item under this title.
            (2) Exception.--The prohibition contained in paragraph (1) 
        shall not apply in any case in which the President determines 
        and certifies to the Committee on Banking, Housing, and Urban 
        Affairs of the Senate and the Committee on International 
        Relations of the House of Representatives that--
                    (A) there is a serious threat to a foreign policy 
                interest of the United States;
                    (B) the prohibition of exports under each binding 
                contract, agreement, commitment, license, or 
                authorization will be instrumental in remedying the 
                situation posing the serious threat; and
                    (C) the export controls will be in effect only as 
                long as the serious threat exists.

SEC. 302. PROCEDURES FOR IMPOSING CONTROLS.

    (a) Notice.--
            (1) Intent to impose foreign policy export control.--Except 
        as provided in section 306, not later than 45 days before 
        imposing or implementing an export control under this title, 
        the President shall publish in the Federal Register--
                    (A) a notice of intent to do so; and
                    (B) provide for a period of not less than 30 days 
                for any interested person to submit comments on the 
                export control proposed under this title.
            (2) Purposes of notice.--The purposes of the notice are--
                    (A) to provide an opportunity for the formulation 
                of an effective export control policy under this title 
                that advances United States economic and foreign policy 
                interests; and
                    (B) to provide an opportunity for negotiations to 
                achieve the purposes set forth in section 301(b).
    (b) Negotiations.--During the 45-day period that begins on the date 
of notice described in subsection (a), the President may negotiate with 
the government of the foreign country against which the export control 
is proposed in order to resolve the reasons underlying the proposed 
export control.
    (c) Consultation.--
            (1) Requirement.--The President shall consult with the 
        Committee on Banking, Housing, and Urban Affairs of the Senate 
        and the Committee on International Relations of the House of 
        Representatives regarding any export control proposed under 
        this title and the efforts to achieve or increase multilateral 
        cooperation on the issues or problems underlying the proposed 
        export control.
            (2) Classified consultation.--The consultations described 
        in paragraph (1) may be conducted on a classified basis if the 
        Secretary considers it necessary.

SEC. 303. CRITERIA FOR FOREIGN POLICY EXPORT CONTROLS.

    Each export control imposed by the President under this title 
shall--
            (1) have clearly stated and specific United States foreign 
        policy objectives;
            (2) have objective standards for evaluating the success or 
        failure of the export control;
            (3) include an assessment by the President that--
                    (A) the export control is likely to achieve such 
                objectives and the expected time for achieving the 
                objectives; and
                    (B) the achievement of the objectives of the export 
                control outweighs any potential costs of the export 
                control to other United States economic, foreign 
                policy, humanitarian, or national security interests;
            (4) be targeted narrowly; and
            (5) seek to minimize any adverse impact on the humanitarian 
        activities of United States and foreign nongovernmental 
        organizations in the country subject to the export control.

SEC. 304. PRESIDENTIAL REPORT BEFORE IMPOSITION OF CONTROL.

    (a) Requirement.--Before imposing an export control under this 
title, the President shall submit to the Committee on Banking, Housing, 
and Urban Affairs of the Senate and the Committee on International 
Relations of the House of Representatives a report on the proposed 
export control. The report may be provided on a classified basis if the 
Secretary considers it necessary.
    (b) Content.--The report shall contain a description and assessment 
of each of the criteria described in section 303. In addition, the 
report shall contain a description and assessment of--
            (1) any diplomatic and other steps that the United States 
        has taken to accomplish the intended objective of the proposed 
        export control;
            (2) unilateral export controls imposed, and other measures 
        taken, by other countries to achieve the intended objective of 
        the proposed export control;
            (3) the likelihood of multilateral adoption of comparable 
        export controls;
            (4) alternative measures to promote the same objectives and 
        the likelihood of their potential success;
            (5) any United States obligations under international trade 
        agreements, treaties, or other international arrangements, with 
        which the proposed export control may conflict;
            (6) the likelihood that the proposed export control could 
        lead to retaliation against United States interests;
            (7) the likely economic impact of the proposed export 
        control on the United States economy, United States 
        international trade and investment, and United States 
        agricultural interests, commercial interests, and employment; 
        and
            (8) whether the objectives of the proposed export control 
        outweighs any likely costs to United States economic, foreign 
        policy, humanitarian, or national security interests, including 
        any potential harm to the United States agricultural and 
        business firms and to the international reputation of the 
        United States as a reliable supplier of goods, services, or 
        technology.

SEC. 305. IMPOSITION OF CONTROLS.

    The President may impose an export control under this title after 
the submission of the report required under section 304 and publication 
in the Federal Register of a notice of the imposition of the export 
control.

SEC. 306. DEFERRAL AUTHORITY.

    (a) Authority.--The President may defer compliance with any 
requirement contained in section 302(a), 304, or 305 in the case of a 
proposed export control if--
            (1) the President determines that a deferral of compliance 
        with the requirement is in the national interest of the United 
        States; and
            (2) the requirement is satisfied not later than 60 days 
        after the date on which the export control is imposed under 
        this title.
    (b) Termination of Control.--An export control with respect to 
which a deferral has been made under subsection (a) shall terminate 60 
days after the date the export control is imposed unless all 
requirements have been satisfied before the expiration of that 60-day 
period.

SEC. 307. REVIEW, RENEWAL, AND TERMINATION.

    (a) Renewal and Termination.--
            (1) In general.--Any export control imposed under this 
        title shall terminate on March 31 of each renewal year unless 
        the President renews the export control on or before such date. 
        For purposes of this section, the term ``renewal year'' means 
        2003 and every 2 years thereafter.
            (2) Exception.--This section shall not apply to an export 
        control imposed under this title that--
                    (A) is required by law;
                    (B) is targeted against any country designated as a 
                country supporting international terrorism pursuant to 
                section 310; or
                    (C) has been in effect for less than 1 year as of 
                February 1 of a renewal year.
    (b) Review.--
            (1) In general.--Not later than February 1 of each renewal 
        year, the President shall review all export controls in effect 
        under this title.
            (2) Consultation.--
                    (A) Requirement.--Before completing a review under 
                paragraph (1), the President shall consult with the 
                Committee on Banking, Housing, and Urban Affairs of the 
                Senate and the Committee on International Relations of 
                the House of Representative regarding each export 
                control that is being reviewed.
                    (B) Classified consultation.--The consultations may 
                be conducted on a classified basis if the Secretary 
                considers it necessary.
            (3) Public comment.--In conducting the review of each 
        export control under paragraph (1), the President shall provide 
        a period of not less than 30 days for any interested person to 
        submit comments on renewal of the export control. The President 
        shall publish notice of the opportunity for public comment in 
        the Federal Register not less than 45 days before the review is 
        required to be completed.
    (c) Report to Congress.--
            (1) Requirement.--Before renewing an export control imposed 
        under this title, the President shall submit to the committees 
        of Congress referred to in subsection (b)(2)(A) a report on 
        each export control that the President intends to renew.
            (2) Form and content of report.--The report may be provided 
        on a classified basis if the Secretary considers it necessary. 
        Each report shall contain the following:
                    (A) A clearly stated explanation of the specific 
                United States foreign policy objective that the 
                existing export control was intended to achieve.
                    (B) An assessment of--
                            (i) the extent to which the existing export 
                        control achieved its objectives before renewal 
                        based on the objective criteria established for 
                        evaluating the export control; and
                            (ii) the reasons why the existing export 
                        control has failed to fully achieve its 
                        objectives and, if renewed, how the export 
                        control will achieve that objective before the 
                        next renewal year.
                    (C) An updated description and assessment of--
                            (i) each of the criteria described in 
                        section 303, and
                            (ii) each matter required to be reported 
                        under section 304(b) (1) through (8).
            (3) Renewal of export control.--The President may renew an 
        export control under this title after submission of the report 
        described in paragraph (2) and publication of notice of renewal 
        in the Federal Register.

SEC. 308. TERMINATION OF CONTROLS UNDER THIS TITLE.

    (a) In General.--Notwithstanding any other provision of law, the 
President--
            (1) shall terminate any export control imposed under this 
        title if the President determines that the control has 
        substantially achieved the objective for which it was imposed; 
        and
            (2) may terminate at any time any export control imposed 
        under this title that is not required by law.
    (b) Exception.--Paragraphs (1) and (2) of subsection (a) do not 
apply to any export control imposed pursuant to section 310.
    (c) Effective Date of Termination.--The termination of an export 
control pursuant to this section shall take effect 30 days after the 
President has consulted with the Committee on International Relations 
of the House of Representatives and the Committee on Foreign Relations 
of the Senate on the foreign policy implications of such termination. 
Notice of the termination shall be published in the Federal Register.

SEC. 309. COMPLIANCE WITH INTERNATIONAL OBLIGATIONS.

    Notwithstanding any other provision of this Act setting forth 
limitations on authority to control exports <DELETED>and except as 
provided in section 304, the President may</DELETED>, the President 
shall impose controls on exports to a particular country or countries--
            (1) of items listed on the control list of a multilateral 
        export control regime; or
            (2) in order to fulfill obligations or commitments of the 
        United States under resolutions of the United Nations and under 
        treaties, or other international agreements and arrangements, 
        to which the United States is a party.

SEC. 310. DESIGNATION OF COUNTRIES SUPPORTING INTERNATIONAL TERRORISM.

    (a) License Required.--Notwithstanding any other provision of this 
Act setting forth limitations on the authority to control exports, a 
license shall be required for the export of any item to a country if 
the Secretary of State has determined <DELETED>that</DELETED>--
            (1) that the government of such country has repeatedly 
        provided support for acts of international terrorism; and
            (2) in consultation with the Secretary of Defense, that the 
        export of the item could make  a significant contribution to 
the military potential of such country, including its military 
logistics capability, or could enhance the ability of such country to 
support acts of international terrorism.
    (b) Notification.--The Secretary and the Secretary of State shall 
notify the Committee on International Relations 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 license required by subsection (a).
    (c) Determinations Regarding Repeated Support.--Each determination 
of the Secretary of State under subsection (a)(1), including each 
determination in effect on the date of the enactment of the 
Antiterrorism and Arms Export Amendments Act of 1989, shall be 
published in the Federal Register.
    (d) Limitations on Rescinding Determination.--A determination made 
by the Secretary of State under subsection (a)(1) 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--
            (1) before the proposed rescission would take effect, a 
        report certifying that--
                    (A) there has been a fundamental change in the 
                leadership and policies of the government of the 
                country concerned;
                    (B) that government is not supporting acts of 
                international terrorism; and
                    (C) that government has provided assurances that it 
                will not support acts of international terrorism in the 
                future; or
            (2) at least 45 days before the proposed rescission would 
        take effect, a report justifying the rescission and certifying 
        that--
                    (A) the government concerned has not provided any 
                support for international terrorism during the 
                preceding 6-month period; and
                    (B) the government concerned has provided 
                assurances that it will not support acts of 
                international terrorism in the future.
    (e) Information To Be Included in Notification.--The Secretary and 
the Secretary of State shall include in the notification required by 
subsection (b)--
            (1) a detailed description of the item to be offered, 
        including a brief description of the capabilities of any item 
        for which a license to export is sought;
            (2) the reasons why the foreign country or international 
        organization to which the export or transfer is proposed to be 
        made needs the item which is the subject of such export or 
        transfer and a description of the manner in which such country 
        or organization intends to use the item;
            (3) the reasons why the proposed export or transfer is in 
        the national interest of the United States;
            (4) an analysis of the impact of the proposed export or 
        transfer on the military capabilities of the foreign country or 
        international organization to which such export or transfer 
        would be made;
            (5) an analysis of the manner in which the proposed export 
        would affect the relative military strengths of countries in 
        the region to which the item which is the subject of such 
        export would be delivered and whether other countries in the 
        region have comparable kinds and amounts of the item; and
            (6) an analysis of the impact of the proposed export or 
        transfer on the United States relations with the countries in 
        the region to which the item which is the subject of such 
        export would be delivered.

SEC. 311. CRIME CONTROL INSTRUMENTS.

    (a) In General.--Crime control and detection instruments and 
equipment shall not be approved for export by the Secretary except 
pursuant to an individual export license.
    (b) Implementation.--Notwithstanding any other provision of this 
Act--
            (1) any determination by the Secretary of what goods or 
        technology shall be included on the list established pursuant 
        to this subsection as a result of the export restrictions 
        imposed by this section shall be made with the concurrence of 
        the Secretary of State; and
            (2) any determination by the Secretary to approve or deny 
        an export license application to export crime control or 
        detection instruments or equipment shall be made in concurrence 
        with the recommendations of the Secretary of State submitted to 
        the Secretary with respect to the application pursuant to 
        section 401 of this Act.
    (c) Limitation.--
            (1)  In general.--Notwithstanding subsection (b), the 
        Secretary shall not approve the export to a country of crime 
        control and detection instruments and equipment especially 
        susceptible to abuse as implements of torture if the government 
        of such country, or any group supported by or acting on behalf 
        of such government, has repeatedly engaged in acts of torture 
        unless the Secretary, with the concurrence of the Secretary of 
        State, determines that the end user of the instruments or 
        equipment proposed for export has not been engaged in acts of 
        torture.
            (2) List.--The Secretary shall establish and maintain a 
        list of crime control and detection instruments and equipment 
        especially susceptible to abuse as implements of torture for 
        purposes of paragraph (1), and shall publish such list in the 
        Federal Register.
    (d) Exception.--Subsection (a) shall not apply to exports to 
countries that are NATO or are major non-NATO allies.
    (e) Prohibition.--Notwithstanding any other provision of this 
section, including subsection (d), the export to any country of leg 
irons, saps, blackjacks, electroshock stun belts, thumb cuffs, and 
items specially designed as implements of torture, as determined by the 
Secretary, including components produced for incorporation into these 
items and the technology used for the development or production of 
these items, shall be prohibited.
    (f) Definition.--For purposes of this section, the term ``acts of 
torture'' means acts committed by a person acting under the color of 
law that are specifically intended to inflict severe physical or mental 
pain or suffering (other than pain or suffering incidental to lawful 
sanctions) upon another person within the custody or physical control 
of the person performing the acts.

SEC. 312. MEASURES TO PROTECT THE PUBLIC HEALTH.

    (a) In General.--In order to carry out the policy set forth in 
paragraph (4) of section 301(b), test articles intended for clinical 
investigations shall be approved for export by the President only 
pursuant to an export license.
    (b) Criteria for Export License.--In addition to the criteria set 
forth in paragraph (4) of section 401(a), the President shall require, 
as a prerequisite for approval of an export license for a test article 
required by subsection (a) of this section, that an applicant for such 
license--
            (1) identify each clinical investigation for which the test 
        article is intended; and
            (2) submit proof that each of the protocols for every 
        clinical investigation identified under paragraph (1) has been 
        reviewed by an institutional review board and met the same 
        standards for the protection of the rights and welfare of human 
        subjects as would be required for IRB approval of the protocol 
        if the protocol were for a clinical investigation of such test 
        article pursuant to the Federal Food, Drug, and Cosmetic Act.
    (c) Reporting Requirement.--Not later than one year after the date 
of enactment of this Act, and annually  thereafter, the President shall 
prepare and submit to the appropriate congressional committees a report 
regarding the approval of export licenses as required by subsection 
(a). Such report shall include--
            (1) the names of the applicants for such export licenses;
            (2) the names of approved applicants for such export 
        licenses; and
            (3) the destination country or countries for each 
        application for such export licenses.
    (d) Exception.--The provisions of this section shall not apply if 
the destination country is a full member of the Europen Union, a full 
member of the European Free Trade Association, Canada, Japan, 
Australia, Israel, or New Zealand.
    (e) Definitions.--In this section:
            (1) Application for research or marketing permit.--The term 
        ``application for research or marketing permit'' has the 
        meaning given that term in section 56.102(b) of title 21, Code 
        of Federal Regulations, or successor regulations.
            (2) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means the Committee on 
        International Relations of the House of Representatives and the 
        Committee on Banking, Housing, and Urban Affairs of the Senate.
            (3) Clinical investigation.--The term ``clinical 
        investigation'' means any experiment that involves a test 
        article and one or more human subjects, and that either must 
        meet the requirements for prior submission to the Food and Drug 
        Administration under section 505(i), 507(d), or 520(g) of the 
        Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355(i), 357(d), 
        or 360j(g)), or need not meet the requirements for prior 
        submission to the Food and Drug Administration under those 
        sections, but the results of which are intended to be later 
        submitted to, or held for inspection by, the Food and Drug 
        Administration as part of an application for a research or 
        marketing permit. The term does not include experiments that 
        must meet the provisions of part 58 of title 21, Code of 
        Federal Regulations, or successor regulations, regarding 
        nonclinical laboratory studies.
            (4) Destination country.--The term ``destination country'' 
        means the country into which test articles are being exported.
            (5) Human subject.--The term ``human subject'' means an 
        individual who is or becomes a participant in research, either 
        as a recipient of the test article or as a control. A subject 
        may be either a healthy individual or a patient.
            (6) Institution.--The term ``institution'' means any public 
        or private entity or agency (including Federal, State, and 
        other agencies), either in the United States or other country.
            (7) Institutional review board; irb.--The terms 
        ``institutional review board'' and ``IRB'' mean any board, 
        committee, or other group formally designated by an institution 
        to review, to approve the initiation of, and to conduct 
        periodic review of, biomedical research involving human 
        subjects. The primary purpose of such review is to assure the 
        protection of the rights and welfare of the human subjects.
            (8) irb approval.--The term ``IRB approval'' means the 
        determination of an IRB made pursuant to part 56 of title 21, 
        Code of Federal Regulations, or successor regulations, that a 
        clinical investigation has been reviewed and may be conducted 
        at an institution within the constraints set forth by the IRB 
        and by other institutional and Federal requirements.
            (9) Test article.--The term ``test article'' means any drug 
        for human use, biological product for human use, medical device 
        for human use, human food additive, color additive, electronic 
        product, or any other article that would be subject to 
        regulation under the Federal Food, Drug, and Cosmetic Act if 
        introduced into interstate commerce.

SEC. 313. PROMOTION OF SAFE ENVIRONMENTS.

    (a) In General.--In order to carry out the policy set forth in 
paragraph (5) of section 301(b), the President may prohibit the 
exportation of pesticides or chemicals that the President deems to be a 
risk to the public health, safety, or environment of the United States 
or any other country.
    (b) Report on Exports.--
            (1) Report.--The President shall, by not later than 6 
        months after the date of enactment of this Act--
                    (A) identify all United States persons who export 
                any hazardous pesticide or chemical that is--
                            (i) included in the Convention on the Prior 
                        Informed Consent Procedure for Certain 
                        Hazardous Chemicals and Pesticides in 
                        International Trade, or the Convention on 
                        Persistent Organic Pollutants; or
                            (ii) either banned, severely restricted, 
                        highly regulated, or never regulated for use in 
                        the United States;
                    (B) determine the quantities of each hazardous 
                pesticide and chemical described in subparagraph (A) 
                that each United States person has exported in the 2-
                year period preceding the date of enactment of this 
                Act; and
                    (C) submit to the Committee on International 
                Relations of the House of Representatives and to the 
                Committee on Banking, Housing, and Urban Affairs and 
                the Committee on Foreign Relations of the Senate a 
                comprehensive report on the information described in 
                subparagraphs (A) and (B).
            (2) Regulatory and administrative frameworks.--The 
        President shall include in the report under paragraph (1) a 
        detailed description, done in consultation with appropriate 
        departments and agencies, of the regulatory and administrative 
        frameworks in the United States for measuring, monitoring, and 
        controlling the export of the pesticides and chemicals 
        described in paragraph (1), and any recommendations the 
        President has on how such frameworks could be improved as 
        methods for controlling the export of those substances.
    (c) GAO Report.--The Comptroller General of the United States, in 
consultation with the National Academy of Sciences and such other 
departments and agencies as the Comptroller General considers 
appropriate, shall, by not later than 1 year after the date of the 
enactment of this Act--
            (1) examine the regulatory and administrative frameworks in 
        the United States for measuring, monitoring, and controlling 
        the exportation of the pesticides and chemicals described in 
        subsection (b), and determine the efficiency and effectiveness 
        of those frameworks;
            (2) compare the United States regulatory and administrative 
        frameworks under paragraph (1) with those of the other member 
        countries of the Organization for Economic Cooperation and 
        Development, and provide recommendations concerning any 
        elements of the frameworks of those countries that might be 
        applied to the United States frameworks to help improve their 
        efficiency and effectiveness;
            (3) compare the quantities of each of the substances 
        described in paragraph (1) which have been exported by the 
        United States and all other member countries of the 
        Organization for Economic Cooperation and Development during 
        the 2-year period preceding the date of enactment of this Act;
            (4) evaluate the adequacy of current statutory and 
        regulatory authority, as well as appropriations, for measuring, 
        monitoring, and controlling the export of those substances and 
        suggest improvements for ensuring better measuring, monitoring, 
        and control of those exports; and
            (5) submit to the Committee on International Relations of 
        the House of Representatives and to the Committee on Banking, 
        Housing, and Urban Affairs and the Committee on Foreign 
        Relations of the Senate a report on the findings under 
        paragraphs (1) through (4).

   TITLE IV--PROCEDURES FOR EXPORT LICENSES AND INTERAGENCY DISPUTE 
                               RESOLUTION

SEC. 401. EXPORT LICENSE PROCEDURES.

    (a) Responsibility of the Secretary.--
            (1) In general.--All applications for a license or other 
        authorization to export a controlled item shall be filed in 
        such manner and include such information as the Secretary may, 
        by regulation, prescribe.
            (2) Procedures.--In guidance and regulations that implement 
        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 other relevant 
        matters affecting the review of license applications.
            (3) Calculation of processing times.--In calculating the 
        processing times set forth in this title, 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) Criteria for evaluating applications.--In determining 
        whether to grant an application to export a controlled item 
        under this Act, the following criteria shall be considered:
                    (A) The characteristics of the controlled item.
                    (B) The threat to--
                            (i) the national security interests of the 
                        United States from items controlled under title 
                        II of this Act; or
                            (ii) the foreign policy of the United 
                        States from items controlled under title III of 
                        this Act.
                    (C) The country tier designation of the country to 
                which a controlled item is to be exported pursuant to 
                section 203.
                    (D) The risk of export diversion or misuse by--
                            (i) the exporter;
                            (ii) the method of export;
                            (iii) the end user;
                            (iv) the country where the end user is 
                        located; and
                            (v) the end use.
                    (E) Risk mitigating factors including, but not 
                limited to--
                            (i) changing the characteristics of the 
                        controlled item;
                            (ii) after-market monitoring by the 
                        exporter; and
                            (iii) post-shipment verification.
    (b) Initial Screening.--
            (1) Upon receipt of application.--Upon receipt of an export 
        license application, the Secretary shall enter and maintain in 
        the records of the Department information regarding the receipt 
        and status of the application.
            (2) Initial procedures.--
                    (A) In general.--Not later than 9 days after 
                receiving any license application, the Secretary 
                shall--
                            (i) contact the applicant if the 
                        application is improperly completed or if 
                        additional information is required, and hold 
                        the application for a reasonable time while the 
                        applicant provides the necessary corrections or 
                        information, and such time shall not be 
                        included in calculating the time periods 
                        prescribed in this title; and
                            (ii) upon receipt of a completed 
                        application--
                                    (I) ensure that the classification 
                                state on the application for the export 
                                items is correct, and, if so, refer the 
                                application, through the use of a 
                                common data base or other means, and 
                                all information submitted by the 
                                applicant, and all necessary 
                                recommendations and analyses by the 
                                Secretary, to the Secretary of Defense, 
                                the Secretary of State, and the heads 
                                of and other departments and agencies 
                                the Secretary considers appropriate; or
                                    (II) return the application if a 
                                license is not required.
                    (B) Referral not required.--In the event that the 
                head of a department or agency determines that certain 
                types of applications need not be referred to the 
                department or agency, such department or agency head 
                shall notify the Secretary of the specific types of 
                such applications that the department or agency does 
                not wish to review.
            (3) Withdrawal of application.--An applicant may, by 
        written notice to the Secretary, withdraw an application at any 
        time before final action.
    (c) Action by Other Departments and Agencies.--
            (1) Referral to other agencies.--The Secretary shall 
        promptly refer a license application to the departments and 
        agencies under subsection (b) to make recommendations and 
        provide information to the Secretary.
            (2) Responsibility of referral departments and agencies.--
        The Secretary of Defense, the Secretary of State, and the heads 
        of other reviewing departments and agencies shall take all 
        necessary actions on an application in a prompt and responsible 
        manner. Each department or agency reviewing an application 
        under this section shall establish and maintain records 
        properly identifying and monitoring the status of the matter 
        referred to the department or agency.
            (3) Additional information requests.--Each department or 
        agency to which a license application is referred shall specify 
        to the Secretary any information that is not in the application 
        that would be required for the department or agency to make a 
        determination with respect to the application, and the 
        Secretary shall promptly request such information from the 
        applicant. The time that may elapse between the date the 
        information is requested by that department or agency and the 
        date the information is received by that department or agency 
        shall not be included in calculating the time periods 
        prescribed in this title.
            (4) Time period for action by referral departments and 
        agencies.--Within 30 days after the Secretary refers an 
        application under this section, each department or agency to 
        which an application has been referred shall provide the 
        Secretary with a recommendation either to approve the license 
        or to deny the license. A recommendation that the  Secretary 
deny a license shall include a statement of reasons for the 
recommendation that are consistent with the provisions of this title, 
and shall cite both the specific statutory and regulatory basis for the 
recommendation. A department or agency that fails to provide a 
recommendation in accordance with this paragraph within that 30-day 
period shall be deemed to have no objection to the decision of the 
Secretary on the application.
    (d) Action by the Secretary.--Not later than 30 days after the date 
the application is referred, the Secretary shall--
            (1) if there is agreement among the departments and 
        agencies to which the application has been referred under 
        subsection (c) to issue or deny the license--
                    (A) issue the license and ensure all appropriate 
                personnel in the Department (including the Office of 
                Export Enforcement) are notified of all approved 
                license applications; or
                    (B) notify the applicant of the intention to deny 
                the license; or
            (2) if there is no agreement among such departments and 
        agencies, notify the applicant that the application is subject 
        to the interagency dispute resolution process provided for in 
        section 402.
    (e) Consequences of Application Denial.--
            (1) In general.--If a determination is made to deny a 
        license, the Secretary shall inform the applicant in writing, 
        consistent with the protection of intelligence information 
        sources and methods, of--
                    (A) the determination;
                    (B) the specific statutory and regulatory bases for 
                the proposed denial;
                    (C) what, if any, modifications to, or restrictions 
                on, the items for which the license was sought would 
                allow such export to be compatible with export controls 
                imposed under this Act, and which officer or employee 
                of the Department would be in a position to discuss 
                modifications or restrictions with the applicant and 
                the specific statutory and regulatory bases for 
                imposing such modifications or restrictions;
                    (D) to the extent consistent with the national 
                security and foreign policy interests of the United 
                States, the specific considerations that led to the 
                determination to deny the application; and
                    (E) the availability of appeal procedures.
            (2) Period for applicant to respond.--The applicant shall 
        have 20 days from the date of the notice of intent to deny the 
        application to respond in a manner that addresses and corrects 
        the reasons for the denial. If the applicant does not 
        adequately address or correct the reasons for denial or does 
        not respond, the license shall be denied. If the applicant does 
        address or correct the reasons for denial, the application 
        shall be considered in a timely manner.
    (f) Appeals and Other Actions by Applicant.--
            (1) In general.--The Secretary shall establish appropriate 
        procedures for an applicant to appeal to the Secretary the 
        denial of an application or other administrative action under 
        this Act. In any case in which the Secretary proposes to 
        reverse the decision with respect to the application, the 
        appeal under this subsection shall be handled in accordance 
        with the interagency dispute resolution process provided for in 
        section 402(b)(3).
            (2) Enforcement of time limits.--
                    (A) In general.--In any case in which an action 
                prescribed in this section is not taken on an 
                application within the time period established by this 
                section (except in the case of a time period extended 
                under subsection (g) of which the applicant is 
                notified), the applicant may file a petition with the 
                Secretary requesting compliance with the requirements 
                of this section. When such petition is filed, the 
                Secretary shall take immediate steps to correct the 
                situation giving rise to the petition and shall 
                immediately notify the applicant of such steps.
                    (B) Bringing court action.--If, within 20 days 
                after a petition is filed under subparagraph (A), the 
                processing of the application has not been brought into 
                conformity with the requirements of this section, or 
                the processing of the application has been brought into 
                conformity with such requirements but the Secretary has 
                not so notified the applicant, the applicant may bring 
                an action in an appropriate United States district 
                court for an order requiring compliance with the time 
                periods required by this section.
    (g) Exceptions From Required Time Periods.--The following actions 
related to processing an application shall not be included in 
calculating the time periods prescribed in this section:
            (1) Agreement of the applicant; complexity of analysis; 
        national security impact.--
                    (A) Agreement of the applicant.--Delays upon which 
                the Secretary and the applicant mutually agree.
                    (B) Complexity of analysis.--A reviewing department 
                or agency requires more time due to the complexity of 
                the analysis, if the additional time is not more than 
                60 days.
                    (C) National security impact.--A reviewing 
                department or agency requires additional time because 
                of the potential impact on the national security or 
                foreign policy interests of the United States, if the 
                additional time is not more than 60 days.
            (2) Prelicense checks.--A prelicense check (for a period 
        not to exceed 60 days) that may be required to establish the 
        identity and reliability of the recipient of items controlled 
        under this Act, if--
                    (A) the need for the prelicense check is determined 
                by the Secretary or by another department or agency in 
                any case in which the request for the prelicense check 
                is made by such department or agency;
                    (B) the request for the prelicense check is 
                initiated by the Secretary within 5 days after the 
                determination that the prelicense check is required; 
                and
                    (C) the analysis of the result of the prelicense 
                check is completed by the Secretary within 5 days.
            (3) Requests for government-to-government assurances.--Any 
        request by the Secretary or another department or agency for 
        government-to-government assurances of suitable end uses of 
        items approved for export, when failure to obtain such 
        assurances would result in rejection of the application, if--
                    (A) the request for such assurances is sent to the 
                Secretary of State within 5 days after the 
                determination that the assurances are required;
                    (B) the Secretary of State initiates the request of 
                the relevant government within 10 days thereafter; and
                    (C) the license is issued within 5 days after the 
                Secretary receives the requested assurances.
            (4) Exception.--Whenever a prelicense check described in 
        paragraph (2) or assurances described in paragraph (3) are not 
        requested within the time periods set forth therein, then the 
        time expended for such prelicense check or assurances shall be 
        included in  calculating the time periods established by this 
section.
            (5) Multilateral review.--Multilateral review of a license 
        application to the extent that such multilateral review is 
        required by a relevant multilateral regime.
            (6) Congressional notification.--Such time as is required 
        for mandatory congressional notifications under this Act.
            (7) Consultations.--Consultation with foreign governments, 
        if such consultation is provided for by a relevant multilateral 
        regime as a precondition for approving a license.
            (8) Intelligence agencies.--Delays necessary to obtain 
        information or assessments from intelligence agencies.
    (h) Classification Requests and Other Inquiries.--
            (1) Classification request.--
                    (A) Notification of other agencies.--In any case in 
                which the Secretary receives a written request asking 
                for the proper classification of an item on the Control 
                List or the applicability of licensing requirements 
                under this title, the Secretary shall promptly notify 
                the Secretary of Defense, the Secretary of State, and 
                the head of any other department or agency of the 
                United States that the Secretary considers appropriate, 
                of the request.
                    (B) Determination; resolution of disputes.--The 
                Secretary shall make the determination regarding proper 
                classification within 14 days after receiving the 
                request and inform the person making the request of 
                such determination. If an objection is raised by the 
                Secretary of State or the Secretary of Defense 
                regarding the Secretary's determination within that 
                time period, the disagreement shall be resolved through 
                the interagency resolution process described in section 
                402, except that any such disagreement shall be 
                resolved within 60 days.
            (2) Other inquiries.--In any case in which the Secretary 
        receives a written request for information under this Act, the 
        Secretary shall, within 30 days after receiving the request, 
        reply with that information to the person making the request.

SEC. 402. INTERAGENCY DISPUTE RESOLUTION PROCESS.

    (a) In General.--All license applications on which agreement cannot 
be reached shall be referred to the interagency dispute resolution 
process for decision.
    (b) Interagency Dispute Resolution Process.--
            (1) Initial resolution.--The Secretary shall establish, 
        select the chairperson of, and determine procedures for an 
        interagency committee to review initially all license 
        applications described in subsection (a) with respect to which 
        the Secretary and any of the referral departments and agencies 
        are not in agreement. The <DELETED>chairperson</DELETED> 
        committee shall consider the positions of all the referral 
        departments and agencies (which shall be included in the 
        minutes described in subsection (c)(2)) and make a decision on 
        the license application, including appropriate revisions or 
        conditions thereto<DELETED>.</DELETED>, except that any 
        decision of the committee is not valid unless it is unanimous. 
        If such a unanimous decision is not reached, the license at 
        issue shall be denied, unless the matter is appealed under 
        paragraph (3).
            (2) Intelligence community.--The analytic product of the 
        intelligence community should be fully considered with respect 
        to any proposed license under this title.
        <DELETED>    (3) Further resolution.--The President shall 
        establish additional levels for review or appeal of any matter 
        that cannot be resolved pursuant to the process described in 
        paragraph (1). Each such review shall ensure that matters are 
        resolved or referred to the President not later than 90 days 
        after the completed license application is referred by the 
        Secretary.</DELETED>
            (3) Further resolution.--The President shall establish 
        additional levels for review or appeal of any matter that 
        cannot be resolved pursuant to the process described in 
        paragraph (1). Each such review shall--
                    (A) provide for decision-making based on the 
                concurrence of the participating departments and 
                agencies;
                    (B) provide that a department or agency that fails 
                to take a timely position, citing the specific 
                statutory and regulatory bases for a position, shall be 
                deemed to have no objection to the pending decision;
                    (C) provide that any decision of an interagency 
                committee established under paragraph (1) or 
                interagency dispute resolution process established 
                under this paragraph may be escalated to the next 
                higher level of review at the request of an official 
                appointed by the President, by and with the advice of 
                the Senate, or an officer properly acting in such 
                capacity, of a department or agency that participated 
                in the interagency committee or dispute resolution 
                process that made the decision; and
                    (D) ensure that matters are resolved or referred to 
                the President not later than 90 days after the date the 
                completed license application is referred by the 
                Secretary.
        If concurrence of the participating departments and agencies is 
        not reached at a level of review established under this 
        paragraph, the license at issue shall be denied unless the 
        matter is escalated to the next higher level of review or the 
        President determines otherwise.
    (c) Final Action.--
            (1) In general.--Once a final decision is made under 
        subsection (b), the Secretary shall promptly--
                    (A) issue the license and ensure that all 
                appropriate personnel in the Department (including the 
                Office of Export Enforcement) are notified of all 
                approved license applications; or
                    (B) notify the applicant of the intention to deny 
                the application.
            (2) Minutes.--The interagency committee and each level of 
        the interagency dispute resolution process shall keep 
        reasonably detailed minutes of all meetings. On each matter 
        before the interagency committee or before any other level of 
        the interagency dispute resolution process in which members 
        disagree, each member shall clearly state the reasons for the 
        member's position and the reasons shall be entered in the 
        minutes.

 TITLE V--INTERNATIONAL ARRANGEMENTS; FOREIGN BOYCOTTS; SANCTIONS; AND 
                              ENFORCEMENT

SEC. 501. INTERNATIONAL ARRANGEMENTS.

    (a) Multilateral Export Control Regimes.--
            (1) Policy.--It is the policy of the United States to seek 
        multilateral arrangements that support the national security 
        objectives of the United States (as described in title II) and 
        that establish fairer and more predictable competitive 
        opportunities for United States exporters.
            (2) Participation in existing regimes.--Congress encourages 
        the United States to continue its active participation in and 
        to strengthen existing multilateral export control regimes.
            (3) Participation in new regimes.--It is the policy of the 
        United States to participate in additional multilateral export 
        control regimes if such participation would serve the national 
        security interests of the United States.
    (b) Annual Report on Multilateral Export Control Regimes.--Not 
later than February 1 of each year, the President shall submit to the 
Committee on Banking, Housing, and Urban Affairs of the Senate and the 
Committee on International Relations of the House of Representatives a 
report evaluating the effectiveness of each multilateral export control 
regime, including an assessment of the steps undertaken pursuant to 
subsections (c) and (d). The report, or any part of this report, may be 
submitted in classified form to the extent the President considers 
necessary.
    (c) Standards for Multilateral Export Control Regimes.--The 
President shall take steps to establish the following features in any 
multilateral export control regime in which the United States is 
participating or may participate:
            (1) Full membership.--All supplier countries are members of 
        the regime, and the policies and activities of the members are 
        consistent with the objectives and membership criteria of the 
        multilateral export control regime.
            (2) Effective enforcement and compliance.--The regime 
        promotes enforcement and compliance with the regime's rules and 
        guidelines.
            (3) Public understanding.--The regime makes an effort to 
        enhance public understanding of the purpose and procedures of 
        the multilateral export control regime.
            (4) Effective implementation procedures.--The multilateral 
        export control regime has procedures for the uniform and 
        consistent interpretation and implementation of its rules and 
        guidelines.
            (5) Enhanced cooperation with regime nonmembers.--There is 
        agreement among the members of the multilateral export control 
        regime to--
                    (A) cooperate with governments outside the regime 
                to restrict the export of items controlled by such 
                regime; and
                    (B) establish an ongoing mechanism in the regime to 
                coordinate planning and implementation of export 
                control measures related to such cooperation.
            (6) Periodic high-level meetings.--There are regular 
        periodic meetings of high-level representatives of the 
        governments of members of the multilateral export control 
        regime for the purpose of coordinating export control policies 
        and issuing policy guidance to members of the regime.
            (7) Common list of controlled items.--There is agreement on 
        a common list of items controlled by the multilateral export 
        control regime.
            (8) Regular updates of common list.--There is a procedure 
        for removing items from the list of controlled items when the 
        control of such items no longer serves the objectives of the 
        members of the multilateral export control regime.
            (9) Treatment of certain countries.--There is agreement to 
        prevent the export or diversion of the most sensitive items to 
        countries whose activities are threatening to the national 
        security of the United States or its allies.
            (10) Harmonization of license approval procedures.--There 
        is harmonization among the members of the regime of their 
        national export license approval procedures, practices, and 
        standards.
            (11) Undercutting.--There is a limit with respect to when 
        members of a multilateral export control regime--
                    (A) grant export licenses for any item that is 
                substantially identical to or directly competitive with 
                an item controlled pursuant to the regime, where the 
                United States has denied an export license for such 
                item, or
                    (B) approve exports to a particular end user to 
                which the United States has denied export license for a 
                similar item.
    (d) Standards for National Export Control Systems.--The President 
shall take steps to attain the cooperation of members of each regime in 
implementing effective national export control systems containing the 
following features:
            (1) Export control law.--Enforcement authority, civil and 
        criminal penalties, and statutes of limitations are sufficient 
        to deter potential violations and punish violators under the 
        member's export control law.
            (2) License approval process.--The system for evaluating 
        export license applications includes sufficient technical 
        expertise to assess the licensing status of exports and ensure 
        the reliability of end users.
            (3) Enforcement.--The enforcement mechanism provides 
        authority for trained enforcement officers to investigate and 
        prevent illegal exports.
            (4) Documentation.--There is a system of export control 
        documentation and verification with respect to controlled 
        items.
            (5) Information.--There are procedures for the coordination 
        and exchange of information concerning licensing, end users, 
        and enforcement with other members of the multilateral export 
        control regime.
            (6) Resources.--The member has devoted adequate resources 
        to administer effectively the authorities, systems, mechanisms, 
        and procedures described in paragraphs (1) through (5).
    (e) Objectives Regarding Multilateral Export Control Regimes.--The 
President shall seek to achieve the following objectives with regard to 
multilateral export control regimes:
            (1) Strengthen existing regimes.--Strengthen existing 
        multilateral export control regimes--
                    (A) by creating a requirement to share information 
                about export license applications among members before 
                a member approves an export license; and
                    (B) harmonizing national export license approval 
                procedures and practices, including the elimination of 
                undercutting.
            (2) Review and update.--Review and update multilateral 
        regime export control lists with other members, taking into 
        account--
                    (A) national security concerns;
                    (B) the controllability of items; and
                    (C) the costs and benefits of controls.
            (3) Encourage compliance by nonmembers.--Encourage 
        nonmembers of the multilateral export control regime--
                    (A) to strengthen their national export control 
                regimes and improve enforcement;
                    (B) to adhere to the appropriate multilateral 
                export control regime; and
                    (C) not to undermine an existing multilateral 
                export control regime by exporting controlled items in 
                a manner inconsistent with the guidelines of the 
                regime.
    (f) Transparency of Multilateral Export Control Regimes.-- 
            (1) Publication of information on each existing regime.--
        Not later than 120 days after the date of enactment of this 
        Act, the Secretary shall, for each multilateral export control 
        regime, to the extent that it is not inconsistent with the 
        arrangements of that regime (in the judgment of the Secretary 
        of State) or with the national interest, publish in the Federal 
        Register and post on the Department of Commerce website the 
        following information with respect to the regime:
                    (A) The purposes of the regime.
                    (B) The members of the regime.
                    (C) The export licensing policy of the regime.
                    (D) The items that are subject to export controls 
                under the regime, together with all public notes, 
                understandings, and other aspects of the agreement of 
                the regime, and all changes thereto.
                    (E) Any countries, end uses, or end users that are 
                subject to the export controls of the regime.
                    (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) New regimes.--Not later than 60 days after the United 
        States joins or organizes a new multilateral export control 
        regime, the Secretary shall, to the extent that it is not 
        inconsistent with arrangements under the regime (in the 
        judgment of the Secretary of State) or with the national 
        interest, publish in the Federal Register and post on the 
        Department of Commerce website the information described in 
        subparagraphs (A) through (H) of paragraph (1) with respect to 
        the regime.
            (3) Publication of changes.--Not later than 60 days after a 
        multilateral export control regime adopts any change in the 
        information published under this subsection, the Secretary 
        shall, to the extent not inconsistent with the arrangements 
        under the regime or the national interest, publish such changes 
        in the Federal Register and post such changes on the Department 
        of Commerce website.
    (g) Support of Other Countries' Export Control Systems.--The 
Secretary is encouraged to continue to--
            (1) participate in training of, and provide training to, 
        officials of other countries on the principles and procedures 
        for implementing effective export controls; and
            (2) participate in any such training provided by other 
        departments and agencies of the United States.

SEC. 502. FOREIGN BOYCOTTS.

    (a) Purposes.--The purposes of this section are as follows:
            (1) 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.
            (2) To encourage and, in specified cases, require United 
        States persons engaged in the export of items 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.
    (b) Prohibitions and Exceptions.--
            (1) Prohibitions.--In order to carry out the purposes set 
        forth in subsection (a), 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 that is friendly to the 
        United States and 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, or requirement 
                of, or a request from or on behalf of the boycotting 
                country (subject to the condition that the intent 
                required to be associated with such an act in order to 
                constitute a violation of the prohibition is not 
                indicated solely by 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).
                    (B) Refusing, or requiring any other person to 
                refuse, to employ or otherwise discriminate against any 
                United States person on the basis of the 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 (other than furnishing 
                normal business information in a commercial context, as 
                defined by the Secretary) 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 boycotting country.
                    (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 the 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) compliance, or agreement to comply, with 
                requirements--
                            (i) prohibiting the import of items from 
                        the boycotted country or items produced or 
                        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 items to 
                        the boycotting 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) compliance, or agreement 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, for purposes of applying any exception under this 
                subparagraph, 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) compliance, or agreement to comply, in the 
                normal course of business with the unilateral and 
                specific selection by a boycotting country, or a 
                national or resident thereof, or carriers, insurers, 
                suppliers of services to be performed within the 
                boycotting country, or specific items which, in the 
                normal course of business, are identifiable by source 
                when imported into the boycotting country;
                    (D) compliance, or agreement to comply, with export 
                requirements of the boycotting country relating to 
                shipment 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 a person to 
                comply, with the laws of the country with respect to 
                the 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.
            (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 this 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 applies 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 or the regulations issued pursuant to this subsection. 
        The regulations issued pursuant to this section shall expressly 
        provide that the exceptions set forth in paragraph (2) do not 
        permit activities or agreements (expressed or implied by a 
        course of conduct, including a pattern of responses) that are 
        otherwise prohibited, pursuant to the intent of such 
        exceptions.
    (c) Additional Regulations and Reports.--
            (1) Regulations.--In addition to the regulations issued 
        pursuant to subsection (b), regulations issued pursuant to 
        title III shall implement the purposes set forth in subsection 
        (a).
            (2) Reports by united states persons.--The regulations 
        shall require that any United States person receiving a request 
        to furnish information, enter into or implement an agreement, 
        or take any other action referred to in subsection (a) shall 
        report that request to the Secretary, together with any other 
        information concerning the request that the Secretary 
        determines appropriate. The person shall also submit to the 
        Secretary a statement regarding whether the person intends to 
        comply, and whether the person has complied, with the 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 item to which such report relates may be treated as 
        confidential if the Secretary determines that disclosure of 
        that information would place the United States person involved 
        at a competitive disadvantage. The Secretary shall periodically 
        transmit summaries of the information contained in the reports 
        to the Secretary of State for such action as the Secretary of 
        State, in consultation with the Secretary, considers 
        appropriate to carry out the purposes set forth in subsection 
        (a).
    (d) Preemption.--The provisions of this section and the regulations 
issued under this section shall preempt any law, rule, or regulation 
that--
            (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. 503. PENALTIES.

    (a) Criminal Penalties.--
            (1) Violations by an individual.--Any individual who 
        willfully violates, conspires to violate, or attempts to 
        violate any provision of this Act or any regulation, license, 
        or order issued under this Act shall be fined up to 10 times 
        the value of the exports involved or $1,000,000, whichever is 
        greater, imprisoned for not more than 10 years, or both, for 
        each violation.
            (2) Violations by a person other than an individual.--Any 
        person other than an individual who willfully violates, 
        conspires to violate, or attempts to violate any provision of 
        this Act or any regulation, license, or order issued under this 
        Act shall be fined up to 10 times the value of the exports 
        involved or $5,000,000, whichever is greater, for each 
        violation.
    (b) Forfeiture of Property Interest and Proceeds.--
            (1) Forfeiture.--Any person who is convicted under 
        paragraph (1) or (2) of subsection (a) shall, in addition to 
        any other penalty, forfeit to the United States--
                    (A) any of that person's security or other interest 
                in, claim against, or property or contractual rights of 
                any kind in the tangible items that were the subject of 
                the violation;
                    (B) any of that person's security or other interest 
                in, claim against, or property or contractual rights of 
                any kind in the 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 chapter 46 
        of title 18, United States Code (relating to criminal 
        forfeiture), to the same extent as property subject to 
        forfeiture under that chapter.
    (c) Civil Penalties; Administrative Sanctions.--
            (1) Civil penalties.--The Secretary may impose a civil 
        penalty of up to $500,000 for each violation of a provision of 
        this Act or any regulation, license, or order issued under this 
        Act. A civil penalty under this paragraph may be in addition 
        to, or in lieu of, any other liability or penalty which may be 
        imposed for such a violation.
            (2) Denial of export privileges.--The Secretary may deny 
        the export privileges of any person, including the suspension 
        or revocation of the authority of such person to export or 
        receive United States-origin items subject to this Act, for a 
        violation of a provision of this Act or any regulation, 
        license, or order issued under this Act.
            (3) Exclusion from practice.--The Secretary may exclude any 
        person acting as an attorney, accountant, consultant, freight 
        forwarder, or in any other representative capacity from 
        participating before the Department with respect to a license 
        application or any other matter under this Act.
    (d) Payment of Civil Penalties.--
            (1) Payment as condition of further export privileges.--The 
        payment of a civil penalty imposed under subsection (c) may be 
        made a condition for 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. The period for which the payment of a penalty may 
        be made such a condition may not exceed 1 year after the date 
        on which the payment is due.
            (2) Deferral or suspension.--
                    (A) In general.--The payment of a civil penalty 
                imposed under subsection (c) may be deferred or 
                suspended in whole or in part for a period no longer 
                than any probation period (which may exceed 1 year) 
                that may be imposed upon the person on whom the penalty 
                is imposed.
                    (B) No bar to collection of penalty.--A deferral or 
                suspension under subparagraph (A) shall not operate as 
                a bar to the collection of the penalty concerned in the 
                event that the conditions of the suspension, deferral, 
                or probation are not fulfilled.
            (3) Treatment of payments.--Any amount paid in satisfaction 
        of a civil penalty imposed under subsection (c) shall be 
        covered into the Treasury as miscellaneous receipts.
    (e) Refunds.--
            (1) Authority.--
                    (A) In general.--The Secretary may, in the 
                Secretary's discretion, refund any civil penalty 
                imposed under subsection (c) on the ground of a 
                material error of fact or law in imposition of the 
                penalty.
                    (B) Limitation.--A civil penalty may not be 
                refunded under subparagraph (A) later than 2 years 
                after payment of the penalty.
            (2) Prohibition on actions for refund.--Notwithstanding 
        section 1346(a) of title 28, United States Code, no action for 
        the refund of any civil penalty referred to in paragraph (1) 
        may be maintained in any court.
    (f) Effect of Other Convictions.--
            (1) Denial of export privileges.--Any person convicted of a 
        violation of--
                    (A) a provision of this Act or the Export 
                Administration Act of 1979,
                    (B) a provision of the International Emergency 
                Economic Powers Act (50 U.S.C. 1701 et seq.),
                    (C) section 793, 794, or 798 of title 18, United 
                States Code,
                    (D) section 4(b) of the Internal Security Act of 
                1950 (50 U.S.C. 783(b)),
                    (E) section 38 of the Arms Export Control Act (22 
                U.S.C. 2778),
                    (F) section 16 of the Trading with the Enemy Act 
                (50 U.S.C. App. 16),
                    (G) any regulation, license, or order issued under 
                any provision of law listed in subparagraph (A), (B), 
                (C), (D), (E), or (F),
                    (H) section 371 or 1001 of title 18, United States 
                Code, if in connection with the export of controlled 
                items under this Act or any regulation, license, or 
                order issued under the International Emergency Economic 
                Powers Act, or the export of items controlled under the 
                Arms Export Control Act,
                    (I) section 175 of title 18, United States Code,
                    (J) a provision of the Atomic Energy Act (42 U.S.C. 
                201 et seq.),
                    (K) section 831 of title 18, United States Code, or
                    (L) section 2332a of title 18, United States Code,
        may, at the discretion of the Secretary, be denied export 
        privileges under this Act for a period not to exceed 10 years 
        from the date of the conviction. The Secretary may also revoke 
        any export license under this Act in which such person had an 
        interest at the time of the conviction.
            (2) 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 a person convicted of any violation of a law 
        set forth in paragraph (1) upon a showing of such relationship 
        with the convicted person. The Secretary shall make such 
        showing only after providing notice and opportunity for a 
        hearing.
    (g) Statute of Limitations.--
            (1) In general.--Except as provided in paragraph (2), a 
        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 later of the date of the alleged violation or the date of 
        discovery of the alleged violation.
            (2) Exception.--
                    (A) Tolling.--In any case in which a criminal 
                indictment alleging a violation under subsection (a) is 
                returned within the time limits prescribed by law for 
                the institution of such action, the limitation under 
                paragraph (1) for bringing a proceeding to impose a 
                civil penalty or other administrative sanction under 
                this section shall, upon the return of the criminal 
                indictment, be tolled against all persons named as a 
                defendant.
                    (B) Duration.--The tolling of the limitation with 
                respect to a defendant under subparagraph (A) as a 
                result of a criminal indictment shall continue for a 
                period of 6 months from the date on which the 
                conviction of the defendant becomes final, the 
                indictment against the defendant is dismissed, or the 
                criminal action has concluded.
    (h) Violations Defined by Regulation.--Nothing in this section 
shall limit the authority of the Secretary to define by regulation 
violations under this Act.
    (i) Construction.--Nothing in subsection (c), (d), (e), (f), or (g) 
limits--
            (1) the availability of other administrative or judicial 
        remedies with respect to a violation of a provision of this 
        Act, or any regulation, order, or license issued under this 
        Act;
            (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)).

SEC. 504. MISSILE PROLIFERATION CONTROL VIOLATIONS.

    (a) Violations by United States Persons.--
            (1) Sanctions.--
                    (A) In general.--If the President determines that a 
                United States person knowingly--
                            (i) exports, transfers, or otherwise 
                        engages in the trade of any item on the MTCR 
                        Annex, in violation of the provisions of 
                        section 38 (22 U.S.C. 2778) or chapter 7 of the 
                        Arms Export Control Act, title II or III of 
                        this Act, or any regulations or orders issued 
                        under any such provisions,
                            (ii) conspires to or attempts to engage in 
                        such export, transfer, or trade, or
                            (iii) facilitates such export, transfer, or 
                        trade by any other person,
                then the President shall impose the applicable 
                sanctions described in subparagraph (B).
                    (B) Sanctions described.--The sanctions which apply 
                to a United States person under subparagraph (A) are 
                the following:
                            (i) If the item on the MTCR Annex involved 
                        in the export, transfer, or trade is missile 
                        equipment or technology within category II of 
                        the MTCR Annex, then the President shall deny 
                        to such United States person, for a period of 2 
                        years, licenses for the transfer of missile 
                        equipment or technology controlled under this 
                        Act.
                            (ii) If the item on the MTCR Annex involved 
                        in the export, transfer, or trade is missile 
                        equipment or technology within category I of 
                        the MTCR Annex, then the President shall deny 
                        to such United States person, for a period of 
                        not less than 2 years, all licenses for items 
                        the export of which is controlled under this 
                        Act.
            (2) Discretionary sanctions.--In the case of any 
        determination referred to in paragraph (1), the Secretary may 
        pursue any other appropriate penalties under section 503.
            (3) Waiver.--The President may waive the imposition of 
        sanctions under paragraph (1) on a person with respect to an 
        item if the President certifies to Congress that--
                    (A) the item is essential to the national security 
                of the United States; and
                    (B) such person is a sole source supplier of the 
                item, the item is not available from any alternative 
                reliable supplier, and the need for the item cannot be 
                met in a timely manner by improved manufacturing 
                processes or technological developments.
    (b) Transfers of Missile Equipment or Technology by Foreign 
Persons.--
            (1) Sanctions.--
                    (A) In general.--Subject to paragraphs (3) through 
                (7), if the President determines that a foreign person, 
                after the date of enactment of this section, 
                knowingly--
                            (i) exports, transfers, or otherwise 
                        engages in the trade of any MTCR equipment or 
                        technology that contributes to the design, 
                        development, or production of missiles in a 
                        country that is not an MTCR adherent and would 
                        be, if it were United States-origin equipment 
                        or technology, subject to the jurisdiction of 
                        the United States under this Act,
                            (ii) conspires to or attempts to engage in 
                        such export, transfer, or trade, or
                            (iii) facilitates such export, transfer, or 
                        trade by any other person,
                or if the President has made a determination with 
                respect to a foreign person under section 73(a) of the 
                Arms Export Control Act, then the President shall 
                impose on that foreign person the applicable sanctions 
                under subparagraph (B).
                    (B) Sanctions described.--The sanctions which apply 
                to a foreign person under subparagraph (A) are the 
                following:
                            (i) If the item involved in the export, 
                        transfer, or trade is within category II of the 
                        MTCR Annex, then the President shall deny, for 
                        a period of 2 years, licenses for the transfer 
                        to such foreign person of missile equipment or 
                        technology the export of which is controlled 
                        under this Act.
                            (ii) If the item involved in the export, 
                        transfer, or trade is within category I of the 
                        MTCR Annex, then the President shall deny, for 
                        a period of not less than 2 years, licenses for 
                        the transfer to such foreign person of items 
                        the export of which is controlled under this 
                        Act.
                            (iii) If, in addition to actions taken 
                        under clauses (i) and (ii), the President 
                        determines that the export, transfer, or trade 
                        has substantially contributed to the design, 
                        development, or production of missiles in a 
                        country that is not an MTCR adherent, then the 
                        President shall prohibit, for a period of not 
                        less than 2 years, the importation into the 
                        United States of products produced by that 
                        foreign person.
            (2) Inapplicability with respect to mtcr adherents.--
        Paragraph (1) does not apply with respect to--
                    (A) any export, transfer, or trading activity that 
                is authorized by the laws of an MTCR adherent, if such 
                authorization is not obtained by misrepresentation or 
                fraud; or
                    (B) any export, transfer, or trade of an item to an 
                end user in a country that is an MTCR adherent.
            (3) Effect of enforcement actions by mtcr adherents.--
        Sanctions set forth in paragraph (1) may not be imposed under 
        this subsection on a person with respect to acts described in 
        such paragraph or, if such sanctions are in effect against a 
        person on account of such acts, such sanctions shall be 
        terminated, if an MTCR adherent 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 an 
        MTCR adherent to be innocent of wrongdoing with respect to such 
        acts.
            (4) Advisory opinions.--The Secretary, in consultation with 
        the Secretary of State and the Secretary of Defense, may, upon 
        the request of any person, issue an advisory opinion to that 
        person as to whether a proposed activity by that person would 
        subject that person to sanctions under this subsection. 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.
            (5) Waiver and report to congress.--
                    (A) Waiver.--In any case other than one in which an 
                advisory opinion has been issued under paragraph (4) 
                stating that a proposed activity would not subject a 
                person to sanctions under this subsection, the 
                President may waive the application of paragraph (1) to 
                a foreign person if the President determines that such 
                waiver is essential to the national security of the 
                United States.
                    (B) Report to congress.--In the event that the 
                President decides to apply the waiver described in 
                subparagraph (A), the President shall so notify 
                Congress not less than 20 working days before issuing 
                the waiver. Such notification shall include a report 
                fully articulating the rationale and circumstances 
                which led the President to apply the waiver.
            (6) Additional waiver.--The President may waive the 
        imposition of sanctions under paragraph (1) on a person 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) such person 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.
            (7) Exceptions.--The President shall not apply the sanction 
        under this subsection prohibiting the importation of the 
        products of a foreign person--
                    (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 
                        person 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 NATO 
                        Programs of Cooperation;
                    (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) component 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 and technology essential 
                        to United States products or production.
    (c) Definitions.--In this section:
            (1) Missile.--The term ``missile'' means a category I 
        system as defined in the MTCR Annex, and any other unmanned 
        delivery system of similar capability, as well as the specially 
        designed production facilities for these systems.
            (2) Missile technology control regime; mtcr.--The term 
        ``Missile Technology Control Regime'' or ``MTCR'' means the 
        policy statement, 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-relevant transfers based on the MTCR Annex, 
        and any amendments thereto.
            (3) MTCR adherent.--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.
            (4) MTCR annex.--The term ``MTCR Annex'' means the 
        Guidelines and Equipment and Technology Annex of the MTCR, and 
        any amendments thereto.
            (5) Missile equipment or technology; mtcr equipment or 
        technology.--The terms ``missile equipment or technology'' and 
        ``MTCR equipment or technology'' mean those items listed in 
        category I or category II of the MTCR Annex.
            (6) Foreign person.--The term ``foreign person'' means any 
        person other than a United States person.
            (7) Person.--
                    (A) In general.--The term ``person'' means a 
                natural person as well as a corporation, business 
                association, partnership, society, trust, any other 
                nongovernmental entity, organization, or group, and any 
                governmental entity operating as a business enterprise, 
                and any successor of any such entity.
                    (B) Identification in certain cases.--In the case 
                of countries where it may be impossible to identify a 
                specific governmental entity referred to in 
                subparagraph (A), the term ``person'' means--
                            (i) all activities of that government 
                        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 
                        aircraft, electronics, and space systems or 
                        equipment.
            (8) Otherwise engaged in the trade of.--The term 
        ``otherwise engaged in the trade of'' means, with respect to a 
        particular export or transfer, to be a freight forwarder or 
        designated exporting agent, or a consignee or end user of the 
        item to be exported or transferred.

SEC. 505. CHEMICAL AND BIOLOGICAL WEAPONS PROLIFERATION SANCTIONS.

    (a) Imposition of Sanctions.--
            (1) Determination by the president.--Except as provided in 
        subsection (b)(2), the President shall impose both of the 
        sanctions described in subsection (c) if the President 
        determines that a foreign person, on or after the date of 
        enactment of this section, has knowingly and materially 
        contributed--
                    (A) through the export from the United States of 
                any item that is subject to the jurisdiction of the 
                United States under this Act, or
                    (B) through the export from any other country of 
                any item that would be, if it were a United States 
                item, subject to the jurisdiction of the United States 
                under this Act,
        to the efforts by any foreign country, project, or entity 
        described in paragraph (2) to use, develop, produce, stockpile, 
        or otherwise acquire chemical or biological weapons.
            (2) Countries, projects, or entities receiving 
        assistance.--Paragraph (1) applies in the case of--
                    (A) any foreign country that the President 
                determines has, at any time after the date of enactment 
                of this Act--
                            (i) used chemical or biological weapons in 
                        violation of international law;
                            (ii) used lethal chemical or biological 
                        weapons against its own nationals; or
                            (iii) made substantial preparations to 
                        engage in the activities described in clause 
                        (i) or (ii);
                    (B) any foreign country whose government is 
                determined for purposes of section 310 to be a 
                government that has repeatedly provided support for 
                acts of international terrorism; or
                    (C) any other foreign country, project, or entity 
                designated by the President for purposes of this 
                section.
            (3) Persons against which sanctions are to be imposed.--
        Sanctions shall be imposed pursuant to paragraph (1) on--
                    (A) the foreign person with respect to which the 
                President makes the determination described in that 
                paragraph;
                    (B) any successor entity to that foreign person;
                    (C) any foreign person that is a parent or 
                subsidiary of that foreign person if that parent or 
                subsidiary knowingly assisted in the activities which 
                were the basis of that determination; and
                    (D) any foreign person that is an affiliate of that 
                foreign person if that affiliate knowingly assisted in 
                the activities which were the basis of that 
                determination and if that affiliate is controlled in 
                fact by that foreign person.
    (b) Consultations With and Actions by Foreign Government of 
Jurisdiction.--
            (1) Consultations.--If the President makes the 
        determinations described in subsection (a)(1) with respect to a 
        foreign person, 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 section.
            (2) Actions by government of jurisdiction.--In order to 
        pursue such consultations with that government, the President 
        may delay imposition of sanctions pursuant to this section for 
        a period of up to 90 days. Following the consultations, the 
        President shall impose sanctions unless the President 
        determines and certifies to Congress 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 imposition of sanctions for an additional period of 
        up to 90 days if the President determines and certifies to 
        Congress that government is in the process of taking the 
        actions described in the preceding sentence.
            (3) Report to congress.--The President shall report to 
        Congress, not later than 90 days after making a determination 
        under subsection (a)(1), 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) Procurement sanction.--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)(3).
                    (B) Import sanctions.--The importation into the 
                United States of products produced by any person 
                described in subsection (a)(3) shall be prohibited.
            (2) Exceptions.--The President shall not be required to 
        apply or maintain 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 United 
                        States operational military requirements;
                            (ii) if the President determines 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 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 sanctions;
                    (C) to--
                            (i) spare parts,
                            (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) Termination of Sanctions.--The sanctions imposed pursuant to 
this section shall apply for a period of at least 12 months following 
the imposition of sanctions and shall cease to apply thereafter only if 
the President determines and certifies to the Congress that reliable 
information indicates that the foreign person with respect to which the 
determination was made under subsection (a)(1) has ceased to aid or 
abet any foreign government, project, or entity in its efforts to 
acquire chemical or biological weapons capability as described in that 
subsection.
    (e) Waiver.--
            (1) Criterion for waiver.--The President may waive the 
        application of any sanction imposed on any person pursuant to 
        this section, after the end of the 12-month period beginning on 
the date on which that sanction was imposed on that person, if the 
President determines and certifies to Congress that such waiver is 
important to the national security interests of the United States.
            (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.
    (f) Definition of Foreign Person.--For the purposes of this 
section, the term ``foreign person'' means--
            (1) an individual who is not a citizen of the United States 
        or an alien admitted for permanent residence to the United 
        States; or
            (2) a corporation, partnership, or other 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.

SEC. 506. 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 departments and agencies that the Secretary considers 
        appropriate, shall be responsible for providing policy guidance 
        on the enforcement of this Act.
            (2) General authorities.--
                    (A) Exercise of authority.--To the extent necessary 
                or appropriate to the enforcement of this Act, officers 
                and employees of the Department designated by the 
                Secretary, officers and employees of the United States 
                Customs Service designated by the Commissioner of 
                Customs, and officers and employees of any other 
                department or agency designated by the head of a 
                department or agency exercising functions under this 
                Act, may exercise the enforcement authority under 
                paragraph (3).
                    (B) Customs service.--In carrying out enforcement 
                authority under 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 ports of entry into or exit from the United States 
                where officers of the United States Customs Service are 
                authorized by law to carry out law enforcement 
                responsibilities. Subject to paragraph (3), the United 
                States Customs Service is authorized, in the 
                enforcement of this Act, to search, detain (after 
                search), and seize items at the ports of entry into or 
                exit from the United States where officers of the 
                United States Customs Service are authorized by law to 
                conduct searches, detentions, and seizures, and at the 
                places outside the United States where the United 
                States Customs Service, pursuant to agreement or other 
                arrangement with other countries, is authorized to 
                perform enforcement activities.
                    (C) Other employees.--In carrying out enforcement 
                authority under paragraph (3), the Secretary and 
                officers and employees of the Department designated by 
                the Secretary may make investigations within the United 
                States, and may conduct, outside the United States, 
                pre-license and post-shipment verifications of 
                controlled items and investigations in the enforcement 
                of section 502. The Secretary and officers and 
                employees of the Department designated by the Secretary 
                are authorized to search, detain (after search), and 
                seize items at places within the United States other 
                than ports referred to in subparagraph (B). The search, 
                detention (after search), or seizure of items at the 
                ports and places referred to in subparagraph (B) may be 
                conducted by officers and employees of the Department 
                only with the concurrence of the Commissioner of 
                Customs or a person designated by the Commissioner.
                    (D) Agreements and arrangements.--The Secretary and 
                the Commissioner of Customs may enter into agreements 
                and arrangements for the enforcement of this Act, 
                including foreign investigations and information 
                exchange.
            (3) Specific authorities.--
                    (A) Actions by any designated personnel.--Any 
                officer or employee designated under paragraph (2), in 
                carrying out the enforcement authority under this Act, 
                may do the following:
                            (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, on request of the 
                        Attorney General and 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. The attendance of witnesses 
                        and the production of documents provided for in 
                        this clause may be required from any State, the 
                        District of Columbia, or in any territory of 
                        the United States at any designated place. 
                        Witnesses subpoenaed under this subsection 
                        shall be paid the same fees and mileage 
                        allowance as paid witnesses in the district 
                        courts of the United States.
                    (B) Actions by office of export enforcement and 
                customs service personnel.--
                            (i) Office of export enforcement and 
                        customs service personnel.--Any officer or 
                        employee of the Office of Export Enforcement of 
                        the Department of Commerce (in this Act 
                        referred to as ``OEE'') 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 Act:
                                    (I) Execute any warrant or other 
                                process issued by a court or officer of 
                                competent jurisdiction with respect to 
                                the enforcement of this Act.
                                    (II) Make arrests without warrant 
                                for any violation of this Act committed 
                                in his or her presence or view, or if 
                                the officer or employee has probable 
                                cause  to believe that the person to be 
arrested has committed, is committing, or is about to commit such a 
violation.
                                    (III) Carry firearms.
                            (ii) OEE personnel.--Any officer or 
                        employee of the OEE designated by the Secretary 
                        under paragraph (2) shall exercise the 
                        authority set forth in clause (i) pursuant to 
                        guidelines approved by the Attorney General.
                    (C) Other actions by customs service personnel.--
                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 Act:
                            (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 Act.
                            (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 Act.
                            (iii) Detain (after search) or seize any 
                        item, for purposes of securing for trial or 
                        forfeiture to the United States, on or about 
                        such vehicle, vessel, aircraft, or person or in 
                        such package or container, if the officer or 
                        employee has probable cause to believe the item 
                        has been, is being, or is about to be exported 
                        from or transited through the United States in 
                        violation of this Act.
            (4) Other authorities not affected.--The authorities 
        conferred by this section are in addition to any authorities 
        conferred under other laws.
    (b) Forfeiture.--
            (1) In general.--Any tangible items lawfully seized under 
        subsection (a) by designated officers or employees shall be 
        subject to forfeiture to the United States.
            (2) Applicable laws.--Those provisions of law relating to--
                    (A) the seizure, summary and judicial forfeiture, 
                and condemnation of property for violations of the 
                customs laws;
                    (B) the disposition of such property or the 
                proceeds from the sale thereof;
                    (C) the remission or mitigation of such 
                forfeitures; and
                    (D) 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 Act.
            (3) Forfeitures under customs laws.--Duties that are 
        imposed upon a 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 any 
        officer or employee of the Department that may be authorized or 
        designated for that purpose by the Secretary (or by the 
        Commissioner of Customs or any officer or employee of the 
        United States Customs Service designated by the Commissioner), 
        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 Act 
shall be referred to the Secretary for purposes of determining civil 
penalties and administrative sanctions under section 503 or to the 
Attorney General for criminal action in accordance with this Act or to 
both the Secretary and the Attorney General.
    (d) Undercover Investigation Operations.--
            (1) Use of funds.--With respect to any undercover 
        investigative operation conducted by the OEE that is necessary 
        for the detection and prosecution of violations of this Act--
                    (A) funds made available for export enforcement 
                under this Act may be used to purchase property, 
                buildings, and other facilities, and to lease 
                equipment, conveyances, and 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), subsections (a) and (c) of 
                section 304 of the Federal Property and Administrative 
                Services Act of 1949 (41 U.S.C. 254 (a) and (c)), and 
                section 305 of the Federal Property and Administrative 
                Services Act of 1949 (41 U.S.C. 255);
                    (B) funds made available for export enforcement 
                under this Act 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 sections 1341, 3324, and 9102 
                of title 31, United States Code;
                    (C) funds made available for export enforcement 
                under this Act 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 has a net value of more than $250,000 and 
        is to be liquidated, sold, or otherwise disposed of, the 
        Director of OEE shall report the circumstances to the Secretary 
        and the Comptroller General of the United States as much in 
        advance of such disposition as the Director of the OEE (or the 
        Director's 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. Any property or equipment purchased 
        pursuant to paragraph (1) may be retained for subsequent use in 
        undercover operations under this section. When such property or 
        equipment is no longer needed, it shall be considered surplus 
        and disposed of as surplus government property.
            (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  needed for the conduct of such operation, the 
proceeds or the balance of the proceeds remaining at the time shall be 
deposited into the Treasury of the United States as miscellaneous 
receipts.
            (4) Audit and report.--
                    (A) Audit.--The Director of OEE shall conduct a 
                detailed financial audit of each closed OEE undercover 
                investigative operation 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 Congress a report on the 
                results of the audit.
                    (B) Report.--The Secretary shall submit annually to 
                Congress a report, which may be included in the annual 
                report under section 701, 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 
                        to the operation.
            (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; and
                    (B) the terms ``undercover investigative 
                operation'' and ``undercover operation'' mean any 
                undercover investigative operation conducted by the 
                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 Congress required by 
                        paragraph (4)(B).
    (e) Wiretaps.--
            (1) Authority.--Interceptions of communications in 
        accordance with section 2516 of title 18, United States Code, 
        are authorized to further the enforcement of this Act.
            (2) Conforming amendment.--Section 2516(1) of title 18, 
        United States Code, is amended by adding at the end the 
        following:
            ``(q) any violation of, or conspiracy to violate, the 
        Export Administration Act of 2001 or the Export Administration 
        Act of 1979.''.
    (f) Post-Shipment Verifications.--
            (1) For certain exports and countries.--The Secretary shall 
        target post-shipment verifications--
                    (A) to exports involving the greatest risk to 
                national security; and
                    (B) to those countries identified by the Director 
                of Central Intelligence in the most recent report that 
                was submitted to Congress under section 721 of the 
                Intelligence Authorization Act for Fiscal Year 1997 on 
                the acquisition and supply by foreign countries of 
                dual-use items and other technology useful for the 
                development or production of weapons of mass 
                destruction.
            (2) Conduct of verifications.--The Secretary may, with the 
        concurrence of the Secretary of State--
                    (A) utilize embassy personnel to conduct post-
                shipment verifications; and
                    (B) establish guidelines and regulations allowing 
                United States persons to conduct those verifications.
    (g) Refusal To Allow Post-Shipment Verification.--
            (1) In general.--If an end user refuses to allow post-
        shipment verification of a controlled item, the Secretary shall 
        deny a license for the export of any controlled item to such 
        end user until such post-shipment verification occurs.
            (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 end user refusing to allow post-shipment 
        verification of a controlled item.
            (3) Refusal by country.--(A) If a country with which the 
        United States has entered into an agreement providing for post-
        shipment verifications <DELETED>repeatedly</DELETED> obstructs 
        or otherwise denies the post-shipment verification of 
        controlled items, the Secretary shall deny a license for the 
        export of those items or any substantially identical or 
        directly competitive items or class of items to all end users 
        in that country until such post-shipment verification is 
        allowed.
            (B) If the country in which an end user is located refuses 
        to allow post-shipment verification of a controlled item, 
        whether or not the United States has an agreement with that 
        country providing for post-shipment verifications, the 
        Secretary may deny a license for the export of that item or any 
        substantially identical or directly competitive item or class 
        of items to all end users in that country until such post-
        shipment verification is allowed.
    (h) Freight Forwarders Best Practices Program Authorization.--There 
is authorized to be appropriated for the Department of Commerce 
$3,500,000 and such sums as may be necessary to hire 20 additional 
employees to assist United States freight forwarders and other 
interested parties in developing and implementing, on a voluntary 
basis, a ``best practices'' program to ensure that exports of 
controlled items are undertaken in compliance with this Act.
    (i) End Use Verification Authorization.--
            (1) In general.--There is authorized to be appropriated for 
        the Department of Commerce $4,500,000 and such sums as may be 
        necessary to hire 10 additional overseas investigators to be 
        posted in the People's Republic of China, the Russian 
        Federation, the Hong Kong Special Administrative Region, the 
        Republic of India, Singapore, Egypt, and Taiwan, or any other 
        place the Secretary deems appropriate, for the purpose of 
        verifying the end use of high-risk, dual-use technology.
            (2) Report.--Not later than 2 years after the date of 
        enactment of this Act and annually thereafter, the Department 
        shall, in its annual report to Congress on export controls, 
        include a report on the effectiveness of the end use 
        verification activities authorized under subsection (a). The 
        report shall include the following information:
                    (A) The activities of the overseas investigators of 
                the Department.
                    (B) The types of goods and technologies that were 
                subject to end use verification.
                    (C) The ability of the Department's investigators 
                to detect the illegal transfer of high risk, dual-use 
                goods and technologies.
            (3) Enhancements.--In addition to the authorization 
        provided in paragraph (1), there is authorized to be 
        appropriated for the Department of Commerce $5,000,000 to 
        enhance its program for verifying the end use of items subject 
        to controls under this Act.
    (j) Enhanced Cooperation With United States Customs Service.--
Consistent with the purposes of this Act, the Secretary is authorized 
to undertake, in cooperation with the United States Customs Service, 
such measures as may be necessary or required to enhance the ability of 
the United States to detect unlawful exports and to enforce violations 
of this Act.
    (k) Reference to Enforcement.--For purposes of this section, a 
reference to the enforcement of this Act or to a violation of this Act 
includes a reference to the enforcement or a violation of any 
regulation, license, or order issued under this Act.
    (l) Authorization for Export Licensing and Enforcement Computer 
System.--There is authorized to be appropriated for the Department 
$5,000,000 and such other sums as may be necessary for planning, 
design, and procurement of a computer system to replace the 
Department's primary export licensing and computer enforcement system.
    (m) Authorization for Bureau of Export Administration.--The 
Secretary may authorize, without fiscal year limitation, the 
expenditure of funds transferred to, paid to, received by, or made 
available to the Bureau of Export Administration as a reimbursement in 
accordance with section 9703 of title 31, United States Code (as added 
by Public Law 102-393). The Secretary may also authorize, without 
fiscal year limitation, the expenditure of funds transferred to, paid 
to, received by, or made available to the Bureau of Export 
Administration as a reimbursement from the Department of Justice Assets 
Forfeiture Fund in accordance with section 524 of title 28, United 
States Code. Such funds shall be deposited in an account and shall 
remain available until expended.
    (n) Amendments to Title 31.--
            (1) Section 9703(a) of title 31, United States Code (as 
        added by Public Law 102-393) is amended by striking ``or the 
        United States Coast Guard'' and inserting ``, the United States 
        Coast Guard, or the Bureau of Export Administration of the 
        Department of Commerce''.
            (2) Section 9703(a)(2)(B)(i) of title 31, United States 
        Code is amended (as added by Public Law 102-393)--
                    (A) by striking ``or'' at the end of subclause (I);
                    (B) by inserting ``or'' at the end of subclause 
                (II); and
                    (C) by inserting at the end, the following new 
                subclause:
                                    ``(III) a violation of the Export 
                                Administration Act of 1979, the Export 
                                Administration Act of 2001, or any 
                                regulation, license, or order issued 
                                under those Acts;''.
            (3) Section 9703(p)(1) of title 31, United States Code (as 
        added by Public Law 102-393) is amended by adding at the end 
        the following: ``In addition, for purposes of this section, the 
        Bureau of Export Administration of the Department of Commerce 
        shall be considered to be a Department of the Treasury law 
        enforcement organization.''.
    (o) Authorization for License Review Officers.--
            (1) In general.--There is authorized to be appropriated to 
        the Department of Commerce $2,000,000 to hire additional 
        license review officers.
            (2) Training.--There is authorized to be appropriated to 
        the Department of Commerce $2,000,000 to conduct professional 
        training of license review officers, auditors, and 
        investigators conducting post-shipment verification checks. 
        These funds shall be used to--
                    (A) train and certify, through a formal program, 
                new employees entering these positions for the first 
                time; and
                    (B) the ongoing professional training of 
                experienced employees on an as needed basis.
    (p) Authorization.--
            (1) In general.--There are authorized to be appropriated to 
        the Department of Commerce to carry out the purposes of this 
        Act--
                    (A) $72,000,000 for the fiscal year 2002, of which 
                no less than $27,701,000 shall be used for compliance 
                and enforcement activities;
                    (B) $73,000,000 for the fiscal year 2003, of which 
                no less than $28,312,000 shall be used for compliance 
                and enforcement activities;
                    (C) $74,000,000 for the fiscal year 2004, of which 
                no less than $28,939,000 shall be used for compliance 
                and enforcement activities;
                    (D) $76,000,000 for the fiscal year 2005, of which 
                no less than $29,582,000 shall be used for compliance 
                and enforcement activities; and
                    (E) such additional amounts, for each such fiscal 
                year, as may be necessary for increases in salary, pay, 
                retirement, other employee benefits authorized by law, 
                and other nondiscretionary costs.
            (2) Termination.--The authority granted by this Act shall 
        terminate on December 31, 2005.

SEC. 507. ADMINISTRATIVE PROCEDURE.

    (a) Exemptions From Administrative Procedure.--Except as provided 
in this section, the functions exercised under this Act are excluded 
from the operation of sections 551, 553 through 559, and 701 through 
706 of title 5, United States Code.
    (b) Procedures Relating to Civil Penalties and Sanctions.--
            (1) Administrative procedures.--Any administrative sanction 
        imposed under section 503 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. 
        The imposition of any such administrative sanction shall be 
        subject to judicial review in accordance with sections 701 
        through 706 of title 5, United States Code, except that the 
        review shall be initiated in the United States Court of Appeals 
        for the District of Columbia Circuit, which shall have 
        jurisdiction of the review.
            (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 502 shall be made available for public 
        inspection and copying.
    (c) Collection.--If any person fails to pay a civil penalty imposed 
under section 503, the Secretary may ask the Attorney General to 
commence a civil action in an appropriate district court of the United 
States to recover the amount imposed (plus interest at currently 
prevailing rates from the date of the final order). No such action may 
be commenced more than 5 years after the order imposing the civil 
penalty becomes final. In such an action, the validity, amount, and 
appropriateness of such penalty shall not be subject to review.
    (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 Act, or any regulation, 
        order, or license issued under this Act, including any 
        diversion of goods or technology from an authorized end use or 
        end user, and in any case in which a criminal indictment has 
        been returned against a person alleging a violation of this Act 
        or any of the statutes listed in section 503, the Secretary 
        may, without a hearing, issue an order temporarily denying that 
        person's United States export privileges (hereafter in this 
        subsection referred to as a ``temporary denial order''). A 
        temporary denial order shall be effective for such period (not 
        in excess of 180 days) as the Secretary specifies in the order, 
        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 that constitutes or 
                would constitute a violation of this Act, or any 
                regulation, order, or license issued under this Act; or
                    (B) a criminal indictment has been returned against 
                the person subject to the order alleging a violation of 
                this Act or any of the statutes listed in section 503.
        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 that constitutes or 
        would constitute a violation of this title, or any regulation, 
        order, or license issued under this Act, or whether a criminal 
        indictment has been returned against the person subject to the 
        order alleging a violation of this Act or of any of the 
        statutes listed in section 503. 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) Limitations on Review of Classified Information.--Any 
classified information that is included in the administrative record 
that is subject to review pursuant to subsection (b)(1) or (d)(3) may 
be reviewed by the court only on an ex parte basis and in camera.

           TITLE VI--EXPORT CONTROL AUTHORITY AND REGULATIONS

SEC. 601. EXPORT CONTROL AUTHORITY AND REGULATIONS.

    (a) Export Control Authority.--
            (1) In general.--Unless otherwise reserved to the President 
        or a department (other than the Department) or agency of the 
        United States, all power, authority, and discretion conferred 
        by this Act shall be exercised by the Secretary.
            (2) Delegation of functions of the secretary.--The 
        Secretary may delegate any function under this Act, unless 
        otherwise provided, to the Under Secretary of Commerce for 
        Export Administration or to any other officer of the 
        Department.
    (b) Under Secretary of Commerce; Assistant Secretaries.--
            (1) Under secretary of commerce.--There shall be within the 
        Department an Under Secretary of Commerce for Export 
        Administration (in this section referred to as the ``Under 
        Secretary'') who shall be appointed by the President, by and 
        with the advice and consent of the Senate. The Under Secretary 
        shall carry out all functions of the Secretary under this Act 
        and other provisions of law relating to national security, as 
        the Secretary may delegate.
            (2) Additional assistant secretaries.--In addition to the 
        number of Assistant Secretaries otherwise authorized for the 
        Department of Commerce, there shall be within the Department of 
        Commerce the following Assistant Secretaries of Commerce:
                    (A) An Assistant Secretary for Export 
                Administration who shall be appointed by the President, 
                by and with the advice and consent of the Senate, and 
                who shall assist the Secretary and the Under Secretary 
                in carrying out functions relating to export listing 
                and licensing.
                    (B) An Assistant Secretary for Export Enforcement 
                who shall be appointed by the President, by and with 
                the advice and consent of the Senate, and who shall 
                assist the Secretary and the Under Secretary in 
                carrying out functions relating to export enforcement.
    (c) Issuance of Regulations.--
            (1) In general.--The President and the Secretary may issue 
        such regulations as are necessary to carry out this Act. Any 
        such regulations the purpose of which is to carry out title II 
        or title III may be issued only after the regulations are 
        submitted for review to such departments or agencies as the 
        President considers appropriate. The Secretary shall consult 
        with the appropriate export control advisory committee 
        appointed under section 105(a) in formulating regulations under 
        this title. The second sentence of this subsection does not 
        require the concurrence or approval of any official, 
        department, or agency to which such regulations are submitted.
            (2) Amendments to regulations.--If the Secretary proposes 
        to amend regulations issued under this Act, the Secretary shall 
        report to the Committee on Banking, Housing, and Urban Affairs 
        of the Senate and the Committee on International Relations 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 control 
        advisory committees appointed under section 105(a) in amending 
        regulations issued under this Act.
            (3) Regulations on exports to foreign nationals.--The 
        Secretary, with the concurrence of the  Secretary of State and 
the Secretary of Defense, shall issue regulations to govern the release 
of technology to a foreign national within the United States and to 
establish appropriate procedures and entities to ensure compliance with 
those regulations.

SEC. 602. CONFIDENTIALITY OF INFORMATION.

    (a) Exemptions From Disclosure.--
            (1) Information obtained on or before june 30, 1980.--
        Except as otherwise provided by the third sentence of section 
        502(c)(2) and by section 507(b)(2), information obtained under 
        the Export Administration Act of 1979, or any predecessor 
        statute, on or before June 30, 1980, which is deemed 
        confidential, including Shipper's Export Declarations, or with 
        respect to which a request for confidential treatment is made 
        by the person furnishing such information, shall not be subject 
        to 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.
            (2) Information obtained after june 30, 1980.--Except as 
        otherwise provided by the third sentence of section 502(c)(2) 
        and by section 507(b)(2), information obtained under this Act, 
        under the Export Administration Act of 1979 after June 30, 
        1980, or under the Export Administration regulations as 
        maintained and amended under the authority of the International 
        Emergency Economic Powers Act (50 U.S.C. 1706), 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 (or recordkeeping or reporting 
        requirement) under the Export Administration Act of 1979, under 
        this Act, or under the Export Administration regulations as 
        maintained and amended under the authority of the International 
        Emergency Economic Powers Act (50 U.S.C. 1706), including--
                    (A) the export license or other export 
                authorization itself,
                    (B) classification requests described in section 
                401(h),
                    (C) information or evidence obtained in the course 
                of any investigation by an officer or employee of the 
                Department of Commerce,
                    (D) information obtained or furnished under title V 
                in connection with any international agreement, treaty, 
                or other obligation, and
                    (E) information obtained in making the 
                determinations set forth in section 211 of this Act,
        and information obtained in any investigation of an alleged 
        violation of section 502 of this Act except for information 
        required to be disclosed by section 502(c)(2) or 507(b)(2) of 
        this Act, shall be withheld from public disclosure and shall 
        not be subject to disclosure under section 552 of title 5, 
        United States Code, unless the release of such information is 
        determined by the Secretary to be in the national interest.
    (b) Information to Congress and GAO.--
            (1) In general.--Nothing in this title shall be construed 
        as authorizing the withholding of information from Congress or 
        from the General Accounting Office.
            (2) Availability to the congress--
                    (A) In general.--Any information obtained at any 
                time under this title or under any predecessor Act 
                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 Act or any 
                predecessor Act 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 subsection (a), 
                information described 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 Congress in accordance with this 
                paragraph, any such information which is submitted on a 
                confidential basis and from which any individual can be 
                identified.
    (c) Information Exchange.--Notwithstanding subsection (a), the 
Secretary and the Commissioner of Customs shall exchange licensing and 
enforcement information with each other as necessary to facilitate 
enforcement efforts and effective license decisions.
    (d) Penalties for Disclosure of Confidential Information.--
            (1) Disclosure prohibited.--No officer or employee of the 
        United States, or any department or agency thereof, may 
        publish, divulge, disclose, or make known in any manner or to 
        any extent not authorized by law any information that--
                    (A) the officer or employee 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 section.
            (2) Criminal penalties.--Any such officer or employee who 
        knowingly violates paragraph (1) shall be fined not more than 
        $50,000, imprisoned not more than 1 year, or both, for each 
        violation of paragraph (1). Any such officer or employee may 
        also be removed from office or employment.
            (3) Civil penalties; administrative sanctions.--The 
        Secretary may impose a civil penalty of not more than $5,000 
        for each violation of paragraph (1), except that no civil 
        penalty may be imposed on an officer or employee of the United 
        States, or any department or agency thereof, without the 
        concurrence of the department or agency employing such officer 
        or employee. Subsections 503(e), (g), (h), and (i) and 507(a), 
        (b), and (c) shall apply to actions to impose civil penalties 
        under this paragraph. At the request of the Secretary, a 
        department or agency employing an officer or employee 
        determined to have violated paragraph (1) shall deny that 
        officer or employee access to information exempt from 
        disclosure under this section. Any officer or employee who 
        commits a violation  of paragraph (1) may also be removed from 
office or employment by the employing agency. Any officer or employee 
who commits such violation may also be removed from office or 
employment for the violation of paragraph (1). Sections 503 (e), (g), 
(h), and (i) and 507 (a), (b), and (c) shall apply to violations 
described in this paragraph.

          <DELETED>TITLE VII--EXPORTS OF SATELLITES</DELETED>

<DELETED>SEC. 701. APPLICABILITY.</DELETED>

<DELETED>    This title applies with respect to exports, and all 
applications for licenses to export, satellites and related items, 
notwithstanding any other provision of this or any other Act.</DELETED>

<DELETED>SEC. 702. EXPORT CONTROLS ON SATELLITES AND RELATED 
              ITEMS.</DELETED>

<DELETED>    All satellites and related items that were on the Commerce 
Control List of dual-use items in the Export Administration Regulations 
(15 C.F.R. part 730 et seq.) on October 16, 1998, shall, subject to 
sections 703 and 704, be controlled under this Act.</DELETED>

<DELETED>SEC. 703. EXPORT LICENSE PROCEDURES.</DELETED>

<DELETED>    (a) Referral to Other Departments and Agencies.--The 
Secretary shall refer to the Secretary of Defense, the Secretary of 
State, and the heads of other departments and agencies that the 
Secretary considers appropriate, all applications for licenses to 
export satellites and related items.</DELETED>
<DELETED>    (b) Required Consultations With Intelligence Community.--
The Secretary, the Secretary of Defense, and the Secretary of State, as 
appropriate, shall consult with the Director of Central Intelligence 
during the review of any application for a license involving the 
overseas launch of a commercial satellite of United States 
origin.</DELETED>
<DELETED>    (c) Time Period for Referrals.--Within 30 days after the 
Secretary refers an export license application under this section, each 
department or agency to which an export license application has been 
referred shall provide the Secretary with a recommendation to either 
approve or deny the license application. A department or agency that 
fails to provide a recommendation within that 30-day period shall be 
deemed to have no objection to the decision of the Secretary on the 
license application.</DELETED>
<DELETED>    (d) Interagency Dispute Resolution Process.--If there is 
no agreement among the Secretary, the Secretary of Defense, and the 
Secretary of State to issue or deny a license to which this section 
applies, then the Secretary shall refer the license application to an 
interagency dispute resolution process established by the President. 
The dispute resolution process shall be completed within a period of 60 
days. A license pursuant to the application shall not be issued or 
denied until the Secretary, the Secretary of Defense, and the Secretary 
of State agree to issue or deny the license, or until the President 
makes a determination to issue or deny the license.</DELETED>

<DELETED>SEC. 704. MANDATORY STATE DEPARTMENT REVIEW.</DELETED>

<DELETED>    (a) Certain Defense Services.--The provision of defense 
services by United States persons, including services or assistance 
provided during technical interchange meetings, in connection with the 
launch of a satellite from, or by nationals of, the People's Republic 
of China, are subject to section 38 of the Arms Export Control 
Act.</DELETED>
<DELETED>    (b) Notification to Congress.--At least 30 days before any 
export license or any technical assistance agreement is approved under 
subsection (a), the President shall transmit a certification with 
respect to such export license or technical assistance agreement 
pursuant to section 36(c) of the Arms Export Control Act, without 
regard to the value limitation thereunder.</DELETED>

<DELETED>SEC. 705. DEFINITIONS.</DELETED>

<DELETED>    In this title:</DELETED>
        <DELETED>    (1) Defense service.--The term ``defense service'' 
        shall have the meaning set forth in section 47 of the Arms 
        Export Control Act or regulations issued thereunder.</DELETED>
        <DELETED>    (2) Related items.--The term ``related items'' 
        means the satellite fuel, ground support equipment, test 
        equipment, payload adapter or interface hardware, replacement 
        parts, and nonembedded solid propellant orbit transfer engines 
        described in the report submitted to Congress by the Department 
        of State on February 6, 1998, pursuant to section 38(f) of the 
        Arms Export Control Act (22 U.S.C. 2778(f)), as well as 
        systems, components, parts, accessories, and associated 
        equipment for satellites, including ground control 
        equipment.</DELETED>
        <DELETED>    (3) Satellite.--The term ``satellite'' means any 
        commercial communications satellite.</DELETED>

<DELETED>SEC. 706. CONFORMING AMENDMENTS.</DELETED>

<DELETED>    (a) 1999 NDAA.--(1) Section 1513(a) of the Strom Thurmond 
National Defense Authorization Act for Fiscal Year 1999 (22 U.S.C. 2778 
note) is repealed.</DELETED>
<DELETED>    (2) Section 1513(c) of that Act is amended by striking 
``(1) Subsection (a)'' and all that follows through ``(2)''.</DELETED>
<DELETED>    (3) Section 1514(a)(6) of that Act is amended by striking 
``Secretary of State'' and inserting ``Secretary of Commerce and the 
Secretary of State''.</DELETED>
<DELETED>    (b) 2000 NDAA.--(1) Section 1404 of the National Defense 
Authorization Act for Fiscal Year 2000 (22 U.S.C. 2778 note) is amended 
in the matter preceding paragraph (1), by striking ``Secretary of 
State'' and inserting ``Secretary of Commerce or the Secretary of 
State, as the case may be,''.</DELETED>
<DELETED>    (2) Section 1410 of that Act, and the item relating to 
that section in the table of contents of that Act, are 
repealed.</DELETED>
<DELETED>    (3) Section 1411(a) of that Act is amended in the first 
sentence by striking ``involving the overseas launch of a commercial 
satellite of United States origin'' and inserting ``to provide defense 
services referred to in section 704 of the Export Administration Act of 
2001, in connection with the launch of a satellite''.</DELETED>
<DELETED>    (4) Section 1412(d) of that Act is amended by striking 
``Secretary of State and'' and inserting ``Secretary of Commerce, the 
Secretary of State, and''.</DELETED>
<DELETED>    (c) Additional Conforming Amendments.--(1) Section 1309 of 
the Admiral James W. Nance and Meg Donovan Foreign Relations 
Authorization Act, Fiscal Years 2000 and 2001 (as enacted by Public Law 
106-113; 113 Stat. 1501A-460) is amended--</DELETED>
        <DELETED>    (A) by amending the section heading to read as 
        follows:</DELETED>

<DELETED>``SEC. 1309. OFFICE OF DEFENSE TRADE CONTROLS.'';</DELETED>

        <DELETED>    (B) by striking subsections (a) and (c); 
        and</DELETED>
        <DELETED>    (C) in subsection (b), by striking ``(b) Financial 
        and Personnel Resources.--''.</DELETED>
<DELETED>    (2) The table of contents of that Act is amended by 
striking the item relating to section 1309 and inserting the 
following:</DELETED>

<DELETED>``Sec. 1309. Office of Defense Trade Controls.''.

<DELETED>SEC. 707. EFFECTIVE DATE.</DELETED>

<DELETED>    (a) In General.--This title and the amendments made by 
this Act shall take effect on the date of the enactment of this Act, 
and shall apply to any export license application made under the Arms 
Export Control Act before such date of enactment which is pending on 
such date, and to any export license application made on or after such 
date.</DELETED>
<DELETED>    (b) Transfer of Pending Applications.--Any export license 
application made under the Arms Export Control Act before the date of 
the enactment of this Act, to which section 702 of this Act applies and 
which is pending on such date of enactment, shall be transferred to the 
Department of Commerce upon the enactment of this Act.</DELETED>

<DELETED>SEC. 708. EFFECT ON EXISTING LAW.</DELETED>

<DELETED>    Nothing in this title shall affect the continued 
application of section 36 or 38 of the Arms Export Control Act, or any 
other provision of that Act, to the export or other provision of 
defense services related to items in Category 4 of the United States 
Munitions List.</DELETED>

      TITLE <DELETED>VIII</DELETED> VII--MISCELLANEOUS PROVISIONS

SEC. <DELETED>801</DELETED> 701. ANNUAL REPORT.

    (a) Annual Report.--Not later than February 1 of each year, the 
Secretary shall submit to Congress a report on the administration of 
this Act during the fiscal year ending September 30 of the preceding 
calendar year. All Federal agencies shall cooperate fully with the 
Secretary in providing information for each such report.
    (b) Report Elements.--Each such report shall include in detail--
            (1) a description of the implementation of the export 
        control policies established by this Act, including any 
        delegations of authority by the President and any other changes 
        in the exercise of delegated authority;
            (2) a description of the changes to and the year-end status 
        of country tiering and the Control List;
            (3) a description of the petitions filed and the 
        determinations made with respect to foreign availability and 
        mass-market status, the set-asides of foreign availability and 
        mass-market status determinations, and negotiations to 
        eliminate foreign availability;
            (4) a description of any enhanced control imposed on an 
        item pursuant to section 201(d);
            (5) a description of the regulations issued under this Act;
            (6) a description of organizational and procedural changes 
        undertaken in furtherance of this Act;
            (7) a description of the enforcement activities, 
        violations, and sanctions imposed under this Act;
            (8) a statistical summary of all applications and 
        notifications, including--
                    (A) the number of applications and notifications 
                pending review at the beginning of the fiscal year;
                    (B) the number of notifications returned and 
                subject to full license procedure;
                    (C) the number of notifications with no action 
                required;
                    (D) the number of applications that were approved, 
                denied, or withdrawn, and the number of applications 
                where final action was taken; and
                    (E) the number of applications and notifications 
                pending review at the end of the fiscal year;
            (9) summary of export license data by export identification 
        code and dollar value by country;
            (10) an identification of processing time by--
                    (A) overall average, and
                    (B) top 25 export identification codes;
            (11) an assessment of the effectiveness of multilateral 
        regimes, and a description of negotiations regarding export 
        controls;
            (12) a description of the significant differences between 
        the export control requirements of the United States and those 
        of other multilateral control regime members, and the specific 
        differences between United States requirements and those of 
        other significant supplier countries;
            (13) an assessment of the costs of export controls;
            (14) a description of the progress made toward achieving 
        the goals established for the Department dealing with export 
        controls under the Government Performance Results Act;
            (15) an analysis and risk assessment of dual-use United 
        States-origin items useful for the development or production of 
        weapons of mass destruction acquired by countries identified by 
        the Director of the Central Intelligence in the most recent 
        report submitted to Congress under section 721 of the 
        Intelligence Authorization Act for Fiscal Year 1997; and
            (16) any other reports required by this Act to be submitted 
        to the Committee on Banking, Housing, and Urban Affairs of the 
        Senate and the Committee on International Relations of the 
        House of Representatives.
    (c) Federal Register Publication Requirements.--Whenever 
information under this Act is required to be published in the Federal 
Register, such information shall, in addition, be posted on the 
Department of Commerce or other appropriate government website.

SEC. <DELETED>802</DELETED> 702. RELATIONSHIP TO THE ARMS EXPORT 
              CONTROL ACT.

    Nothing in this Act shall be construed to alter or affect--
            (1) any provision of the Arms Export Control Act; or
            (2) any authority delegated by the President to the 
        Secretary of State under the Arms Export Control Act.

SEC. <DELETED>803</DELETED> 703. ENHANCEMENT OF CONGRESSIONAL OVERSIGHT 
              OF NUCLEAR TRANSFERS TO NORTH KOREA.

    The North Korea Threat Reduction Act of 1999 (subtitle B of title 
VIII of division A of H.R. 3427, as enacted into law by section 
1000(a)(7) of Public Law 106-113, and as contained in appendix G to 
such Public Law) is amended in section 822(a)--
            (1) by redesignating paragraphs (1) through (7) as 
        subparagraphs (A) through (G), respectively, and by indenting 
        each such subparagraph 2 ems to the right;
            (2) by striking ``until the President'' and inserting 
        ``until--
            ``(1) the President'';
            (3) at the end of subparagraph (G) (as redesignated in 
        paragraph (1)) by striking the period and inserting ``; and
            ``(2) a joint resolution of the two Houses of Congress is 
        enacted into law--
                    ``(A) the matter after the resolving clause of 
                which is as follows: `That the Congress hereby concurs 
                in the determination and report of the President 
                relating to compliance by North Korea with certain 
                international obligations transmitted pursuant to 
                section 822(a)(1) of the North Korea Threat Reduction 
                Act of 1999.';
                    ``(B) which does not have a preamble; and
                    ``(C) the title of which is as follows: `Joint 
                Resolution relating to compliance by North Korea with 
                certain international obligations pursuant to the North 
                Korea Threat Reduction Act of 1999.'.''; and
            (4) by striking ``such agreement,'' both places it appears 
        and inserting in both places ``such agreement (or that are 
        controlled under the Export Trigger List of the Nuclear 
        Suppliers Group),''.

SEC. <DELETED>804</DELETED> 704. PROCEDURES FOR CONSIDERATION OF JOINT 
              RESOLUTIONS.

    The North Korea Threat Reduction Act of 1999 is amended--
            (1) by redesignating section 823, and the item relating to 
        that section in the table of contents, as section 824;
            (2) by inserting after section 822 the following new 
        section:

``SEC. 823. PROCEDURES FOR CONSIDERATION OF JOINT RESOLUTION DESCRIBED 
              IN SECTION 822(A)(2).

    ``(a) Rulemaking.--The provisions of this section are enacted by 
the Congress--
            ``(1) as an exercise of the rulemaking power of the House 
        of Representatives and the Senate, respectively, and, as such, 
        shall be considered as part of the rules of either House and 
        shall supersede other rules only to the extent they are 
        inconsistent therewith; and
            ``(2) with full recognition of the constitutional right of 
        either House to change the rules so far as they  relate to the 
procedures of that House at any time, in the same manner, and to the 
same extent as in the case of any other rule of that House.
    ``(b) Introduction and Referral.--
            ``(1) Introduction.--A joint resolution described in 
        section 822(a)(2)--
                    ``(A) shall be introduced in the House of 
                Representatives by the majority leader or minority 
                leader or by a Member of the House of Representatives 
                designated by the majority leader or minority leader; 
                and
                    ``(B) shall be introduced in the Senate by the 
                majority leader or minority leader or a Member of the 
                Senate designated by the majority leader or minority 
                leader.
            ``(2) Referral.--The joint resolution shall be referred to 
        the Committee on International Relations of the House of 
        Representatives and the Committee on Foreign Relations of the 
        Senate.
    ``(c) Discharge of Committees.--If a committee to which a joint 
resolution described in section 822(a)(2) is referred has not reported 
such joint resolution by the end of 30 days beginning on the date of 
its introduction, such committee shall be discharged from further 
consideration of such joint resolution, and such joint resolution shall 
be placed on the appropriate calendar of the House involved.
    ``(d) Floor Consideration in the House of Representatives.--
            ``(1) In general.--On or after the third calendar day 
        (excluding Saturdays, Sundays, or legal holidays, except when 
        the House of Representatives is in session on such a day) after 
        the date on which the committee to which a joint resolution 
        described in section 822(a)(2) is referred has reported, or has 
        been discharged from further consideration of, such a joint 
        resolution, it shall be in order for any Member of the House to 
        move to proceed to the consideration of the joint resolution. A 
        Member of the House may make the motion only on the day after 
        the calendar day on which the Member announces to the House the 
        Member's intention to do so. Such motion is privileged and is 
        not debatable. The motion is not subject to amendment or to a 
        motion to postpone. A motion to reconsider the vote by which 
        the motion is agreed to shall not be in order. If a motion to 
        proceed to the consideration of the joint resolution is agreed 
        to, the House shall immediately proceed to consideration of the 
        joint resolution which shall remain the unfinished business 
        until disposed of.
            ``(2) Debate.--Debate on a joint resolution described in 
        section 822(a)(2), and on all debatable motions and appeals in 
        connection therewith, shall be limited to not more than two 
        hours, which shall be divided equally between those favoring 
        and those opposing the joint resolution. An amendment to the 
        joint resolution is not in order. A motion further to limit 
        debate is in order and is not debatable. A motion to table, a 
        motion to postpone, or a motion to recommit the joint 
        resolution is not in order. A motion to reconsider the vote by 
        which the joint resolution is agreed to or disagreed to is not 
        in order.
            ``(3) Appeals.--Appeals from the decisions of the Chair to 
        the procedure relating to a joint resolution described in 
        section 822(a)(2) shall be decided without debate.
    ``(e) Floor Consideration in the Senate.--Any joint resolution 
described in section 822(a)(2) 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.
    ``(f) Consideration by the Other House.--If, before the passage by 
one House of a joint resolution of that House described in section 
822(a)(2), that House receives from the other House a joint resolution 
described in section 822(a)(2), then the following procedures shall 
apply:
            ``(1) The joint resolution of the other House shall not be 
        referred to a committee and may not be considered in the House 
        receiving it except in the case of final passage as provided in 
        paragraph (2)(B).
            ``(2) With respect to a joint resolution described in 
        section 822(a)(2) of the House receiving the joint resolution--
                    ``(A) the procedure in that House shall be the same 
                as if no joint resolution had been received from the 
                other House; but
                    ``(B) the vote on final passage shall be on the 
                joint resolution of the other House.
            ``(3) Upon disposition of the joint resolution received 
        from the other House, it shall no longer be in order to 
        consider the joint resolution that originated in the receiving 
        House.
    ``(g) Computation of Days.--In the computation of the period of 30 
days referred to in subsection (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.''; and
            (3) by inserting after the item relating to section 822 in 
        the table of contents the following new item:

``Sec. 823. Procedures for consideration of joint resolution described 
                            in section 822(a)(2).''.

SEC. <DELETED>805</DELETED> 705. RECOMMENDATIONS OF THE JUDICIAL REVIEW 
              COMMISSION ON FOREIGN ASSET CONTROL.

    In accordance with the findings of the Judicial Review Commission 
on Foreign Asset Control contained in the report of the Commission 
submitted to Congress in January 2001 under section 810(g) of the 
Foreign Narcotics Kingpin Designation Act (21 U.S.C. 1908(g)), the 
President shall direct the Office of Foreign Assets Control of the 
Department of the Treasury to--
            (1) publish proposed regulations on sanctions in order to 
        provide public notice of, and invite public comment on, the 
        proposed regulations, unless exigent circumstances are present;
            (2) provide interpretations and guidelines to accompany the 
        issuance of regulations; and
            (3) take steps to expand and enhance the transparency of 
        its operations and decisionmaking standards by publishing its 
        licensing and civil penalty decisions in unclassified form and 
        by providing answers to ``frequently asked questions'' on its 
        website.

SEC. <DELETED>806</DELETED> 706. IMPROVEMENTS TO THE AUTOMATED EXPORT 
              SYSTEM.

    (a) Mandatory Filing.--The Secretary, with the concurrence of the 
Secretary of State and the Secretary of the Treasury, shall publish 
regulations in the Federal Register to require, upon the effective date 
of those regulations, the mandatory filing through the Automated Export 
System for the remainder of exports that were not covered by 
regulations issued pursuant to section 1252(b) of the Security 
Assistance Act of 1999 (113 Stat. 1501A-506), as enacted into law by 
section 1000(a)(7) of Public Law 106-113.
    (b) Requirement for Information Sharing.--The Secretary of State 
shall conclude an information sharing arrangement with the heads of 
United States Customs Service and the Census Bureau to adjust the 
Automated Export System to parallel information currently collected by 
the Department of State.
    (c) Secretary of Treasury Functions.--Section 303 of title 13, 
United States Code, is amended by striking ``, other than by mail,''.
    (d) Filing Export Information, Delayed Filings, Penalties for 
Failure To File.--Section 304 of title 13, United States Code, is 
amended--
            (1) in subsection (a)--
                    (A) in the first sentence, by striking ``the penal 
                sum of $1,000'' and inserting ``a penal sum of 
                $10,000''; and
                    (B) in the third sentence, by striking ``a penalty 
                not to exceed $100 for each day's delinquency beyond 
                the prescribed period, but not more than $1,000, shall 
                be exacted'' and inserting ``the Secretary of Commerce 
                (and officers and employees of the Department of 
                Commerce designated by the Secretary) may impose a 
                civil penalty not to exceed $1,000 for each day's 
                delinquency beyond the prescribed period, but not more 
                than $10,000 per violation'';
            (2) by redesignating subsection (b) as subsection (c); and
            (3) by inserting after subsection (a) the following:
          ``(b) Any person, other than a person described in subsection 
(a), required to submit export information, shall file such information 
in accordance with any rule, regulation, or order issued pursuant to 
this chapter. In the event any such information or reports are not 
filed within such prescribed period, the Secretary of Commerce (and 
officers and employees of the Department of Commerce designated by the 
Secretary) may impose a civil penalty not to exceed $1,000 for each 
day's delinquency beyond the prescribed period, but not more than 
$10,000 per violation.''.
    (e) Additional Penalties.--
            (1) In general.--Section 305 of title 13, United States 
        Code, is amended to read as follows:
``Sec. 305. Penalties for unlawful export information activities
    ``(a) Criminal Penalties.--(1) Any person who knowingly fails to 
file or knowingly submits false or misleading export information 
through the Shippers Export Declaration (SED) (or any successor 
document) or the Automated Export System (AES) shall be subject to a 
fine not to exceed $10,000 per violation or imprisonment for not more 
than 5 years, or both.
    ``(2) Any person who knowingly reports any information on or uses 
the SED or the AES to further any illegal activity shall be subject to 
a fine not to exceed $10,000 per violation or imprisonment for not more 
than 5 years, or both.
    ``(3) Any person who is convicted under this subsection 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 
        goods 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.
    ``(b) Civil Penalties.--The Secretary (and officers and employees 
of the Department of Commerce specifically designated by the Secretary) 
may impose a civil penalty not to exceed $10,000 per violation on any 
person violating the provisions of this chapter or any rule, 
regulation, or order issued thereunder, except as provided in section 
304. Such penalty may be in addition to any other penalty imposed by 
law.
    ``(c) Civil Penalty Procedure.--(1) When a civil penalty is sought 
for a violation of this section or of section 304, the charged party is 
entitled to receive a formal complaint specifying the charges and, at 
his or her request, to contest the charges in a hearing before an 
administrative law judge. Any such hearing shall be conducted in 
accordance with sections 556 and 557 of title 5.
    ``(2) If any person fails to pay a civil penalty imposed under this 
chapter, the Secretary may ask the Attorney General to commence a civil 
action in an appropriate district court of the United States to recover 
the amount imposed (plus interest at currently prevailing rates from 
the date of the final order). No such action may be commenced more than 
5 years after the order imposing the civil penalty becomes final. In 
such action, the validity, amount, and appropriateness of such penalty 
shall not be subject to review.
    ``(3) The Secretary may remit or mitigate any penalties imposed 
under paragraph (1) if, in his or her opinion--
            ``(A) the penalties were incurred without willful 
        negligence or fraud; or
            ``(B) other circumstances exist that justify a remission or 
        mitigation.
    ``(4) If, pursuant to section 306, the Secretary delegates 
functions under this section to another agency, the provisions of law 
of that agency relating to penalty assessment, remission or mitigation 
of such penalties, collection of such penalties, and limitations of 
actions and compromise of claims, shall apply.
    ``(5) Any amount paid in satisfaction of a civil penalty imposed 
under this section or section 304 shall be deposited into the general 
fund of the Treasury and credited as miscellaneous receipts.
    ``(d) Enforcement.--(1) The Secretary of Commerce may designate 
officers or employees of the Office of Export Enforcement to conduct 
investigations pursuant to this chapter. In conducting such 
investigations, those officers or employees may, to the extent 
necessary or appropriate to the enforcement of this chapter, exercise 
such authorities as are conferred upon them by other laws of the United 
States, subject to policies and procedures approved by the Attorney 
General.
    ``(2) The Commissioner of Customs may designate officers or 
employees of the Customs Service to enforce the provisions of this 
chapter, or to conduct investigations pursuant to this chapter.
    ``(e) Regulations.--The Secretary of Commerce shall promulgate 
regulations for the implementation and enforcement of this section.
    ``(f) Exemption.--The criminal fines provided for in this section 
are exempt from the provisions of section 3571 of title 18.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 9 of title 13, United States Code, is 
        amended by striking the item relating to section 305 and 
        inserting the following:

``305. Penalties for unlawful export information activities.''.

SEC. <DELETED>807</DELETED> 707. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Repeal.--The Export Administration Act of 1979 (50 U.S.C. App. 
2401 et seq.) is repealed.
    (b) Energy Policy and Conservation Act.--
            (1) Section 103 of the Energy Policy and Conservation Act 
        (42 U.S.C. 6212), and the item relating to that section in the 
        table of contents for that Act, are repealed.
            (2) Section 251(d) of the Energy Policy and Conservation 
        Act (42 U.S.C. 6271(d)) is repealed.
    (c) Alaska Natural Gas Transportation Act.--Section 12 of the 
Alaska Natural Gas Transportation Act of 1976 (15 U.S.C. 719j) is 
repealed.
    (d) Mineral Leasing Act.--Section 28(u) of the Mineral Leasing Act 
(30 U.S.C. 185(u)) is repealed.
    (e) Exports of Alaskan North Slope Oil.--Section 28(s) of the 
Mineral Leasing Act (30 U.S.C. 185(s)) is repealed.
    (f) Disposition of Certain Naval Petroleum Reserve Products.--
Section 7430(e) of title 10, United States Code, is repealed.
    (g) Outer Continental Shelf Lands Act.--Section 28 of the Outer 
Continental Shelf Lands Act (43 U.S.C. 1354) is repealed.
    (h) Arms Export Control Act.--The Arms Export Control Act is 
amended as follows:
            (1) Section 36(g) (22 U.S.C. 2776(g)) is amended by 
        striking ``12(c) of the Export Administration Act of 1979'' and 
        inserting ``602(c) of the Export Administration Act of 2001''.
            (2) Section 38 (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 
                        503 of the Export Administration Act of 2001, 
                        by subsections (a) and (b) of section 506 of 
                        that Act, and by section 602 of that Act,'';
                            (ii) in the first sentence, by striking 
                        ``11(c)(2)(B)'' and inserting ``507(b)(1)''; 
                        and
                            (iii) in the third sentence, by striking 
                        ``11(c) of the Export Administration Act of 
                        1979'' and inserting ``503(c) of the Export 
                        Administration Act of 2001'';
                    (B) in subsection (f)(1), by striking ``1979'' and 
                inserting ``2001''; and
                    (C) in subsection (g)(1)(A)(ii), by inserting ``or 
                section 503 of the Export Administration Act of 2001'' 
                after ``1979''.
            (3) Section 39A(c) (22 U.S.C. 2779a(c)) is amended--
                    (A) by striking ``subsections (c),'' and all that 
                follows through ``12(a) of such Act'' and inserting 
                ``subsections (c), (d), and (e) of section 503, section 
                507(c), and subsections (a) and (b) of section 506, of 
                the Export Administration Act of 2001'';
                    (B) by striking ``11(c)(2)(B) of such Act'' and 
                inserting ``507(b)(1) of that Act''; and
                    (C) by striking ``11(c)'' and inserting ``503(c)''.
            (4) Section 40(k) (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 
                ``503(b), 503(c), 503(e), 506(a), and 506(b) of the 
                Export Administration Act of 2001'';
                    (B) by striking ``11(c)(2)(B)'' and inserting 
                ``507(b)(1)''; and
                    (C) by striking ``11(c)'' and inserting ``503(c)''.
            (5) Section 71(a) (22 U.S.C. 2797(a)) is amended by 
        striking ``section 6(l) of the Export Administration Act of 
        1979'' and inserting ``title II or III of the Export 
        Administration Act of 2001''.
            (6) Section 72 (22 U.S.C. 2797a) is amended--
                    (A) in subsection (a)(1)(A), by striking ``section 
                5 or 6 of the Export Administration Act of 1979 (50 
                U.S.C. App. 2404, 2405)'' and inserting ``title II or 
                III of the Export Administration Act of 2001''; and
                    (B) in subsection (c), by striking ``6(j)(1)(A) of 
                the Export Administration Act of 1979'' and inserting 
                ``310(a)(1) of the Export Administration Act of 2001''.
            (7) Section 73 (22 U.S.C. 2797b) is amended--
                    (A) in subsection (a)(1), by striking ``11B(b)(1) 
                of the Export Administration Act of 1979'' and 
                inserting ``504(b)(1) of the Export Administration Act 
                of 2001''; and
                    (B) in subsection (f), by striking ``6(j)(1)(A) of 
                the Export Administration Act of 1979'' and inserting 
                ``section 310(a)(1) of the Export Administration Act of 
                2001''.
            (8) Section 74(a)(6) (22 U.S.C. 2797c(a)(6)) is amended by 
        striking ``16(2) of the Export Administration Act of 1979 (50 
        U.S.C. App. 2415(2))'' and inserting ``2(20) of the Export 
        Administration Act of 2001''.
            (9) Section 81(a) (22 U.S.C. 2798(a)) is amended--
                    (A) in paragraph (1)(C), by striking ``1979'' and 
                inserting ``2001''; and
                    (B) in paragraph (2)(B), by striking ``section 6(j) 
                of the Export Administration Act of 1979 (50 U.S.C. 
                2405(j))'' and inserting ``section 310 of the Export 
                Administration Act of 2001''.
            (10) Section 102(b)(2)(G) (22 U.S.C. 2799aa-1(b)(2)(G)) is 
        amended by striking ``section 6 of the Export Administration 
        Act of 1979'' and inserting ``title III of the Export 
        Administration Act of 2001''.
    (i) Other Provisions of Law.--
            (1) Section 5(b)(4) of the Trading with the Enemy Act (50 
        U.S.C. App. 5(b)(4)) is amended by striking ``section 5 of the 
        Export Administration Act of 1979, or under section 6 of that 
        Act to the extent that such controls promote the 
        nonproliferation or antiterrorism policies of the United 
        States'' and inserting ``titles II and III of the Export 
        Administration Act of 2001''.
            (2)(A) Section 502B(a)(2) of the Foreign Assistance Act of 
        1961 (22 U.S.C. 2304(a)(2)) is amended in the second sentence--
                    (i) by striking ``Export Administration Act of 
                1979'' the first place it appears and inserting 
                ``Export Administration Act of 2001''; and
                    (ii) by striking ``Act of 1979)'' and inserting 
                ``Act of 2001)''.
            (B) Section 620E(h) of the Foreign Assistance Act of 1961 
        (22 U.S.C. 2375(h)) is amended by striking ``11B of the Export 
        Administration Act of 1979'' and inserting ``504 of the Export 
        Administration Act of 2001''.
            (C) Section 620H(a)(1) of the Foreign Assistance Act of 
        1961 (22 U.S.C. 2378(a)(1)) is amended by striking ``section 
        6(j) of the Export Administration Act of 1979 (50 U.S.C. App. 
        2405(j))'' and inserting ``section 310 of the Export 
        Administration Act of 2001''.
            (3) Section 565 of the Foreign Relations Authorization Act, 
        Fiscal Years 1994 and 1995 (22 U.S.C. 2679c) is amended--
                    (A) in subsection (a)--
                            (i) in paragraph (2)--
                                    (I) in subparagraph (A), by 
                                striking ``8(a) of the Export 
                                Administration Act of 1979 (50 U.S.C. 
                                App. 2407(a))'' and inserting ``502(b) 
                                of the Export Administration Act of 
                                2001'';
                                    (II) in subparagraph (A), by 
                                striking ``8(a)(1) of such Act'' and 
                                inserting ``502(b)(1) of that Act''; 
                                and
                                    (III) in subparagraph (B), by 
                                striking ``16(2) of the Export 
                                Administration Act of 1979 (50 U.S.C. 
                                App. 2415)'' and inserting ``2(20) of 
                                the Export Administration Act of 
                                2001''; and
                            (ii) in paragraph (3), by striking ``8(a) 
                        of the Export Administration Act of 1979 (50 
                        U.S.C. App. 2407(a))'' and inserting ``502(b) 
                        of the Export Administration Act of 2001''; and
                    (B) in subsection (c)--
                            (i) in paragraph (1), in subsection (b)(1) 
                        of the quoted material, by striking ``8(a) of 
                        the Export Administration Act of 1979 (50 
                        U.S.C. App. 2407(a))'' and  inserting ``502(b) 
of the Export Administration Act of 2001''; and
                            (ii) in paragraph (3), by striking ``8(a) 
                        of the Export Administration Act of 1979 (50 
                        U.S.C. App. 2407(a))'' and inserting ``502(b) 
                        of the Export Administration Act of 2001''.
            (4) Section 140(a) of the Foreign Relations Authorization 
        Act, Fiscal Years 1988 and 1989 (22 U.S.C. 2656f(a)) is 
        amended--
                    (A) in paragraph (1)(B), by inserting ``or section 
                310 of the Export Administration Act of 2001'' after 
                ``Act of 1979''; and
                    (B) in paragraph (2), by inserting ``or section 310 
                of the Export Administration Act of 2001'' after ``6(j) 
                of the Export Administration Act of 1979''.
            (5)(A) Section 36(j)(1)(B) of the State Department Basic 
        Authorities Act of 1956 (22 U.S.C. 2708(j)(1)(B)) is amended by 
        striking ``section 6(j)(1)(A) of the Export Administration Act 
        of 1979 (50 U.S.C. App. 2405(j)(1)(A))'' and inserting 
        ``section 310(a)(1) of the Export Administration Act of 2001''.
            (B) Section 40(e)(1) of the State Department Basic 
        Authorities Act of 1956 (22 U.S.C. 2712(e)(1)) is amended by 
        striking ``section 6(j)(1) of the Export Administration Act of 
        1979'' and inserting ``section 310 of the Export Administration 
        Act of 2001''.
            (C) Section 205(d)(4)(B) of the State Department Basic 
        Authorities Act of 1956 (22 U.S.C. 305(d)(4)(B)) is amended by 
        striking ``section 6(j) of the Export Administration Act of 
        1979'' and inserting ``section 310 of the Export Administration 
        Act of 2001''.
            (6) Section 528(a) of the Foreign Operations, Export 
        Financing, and Related Programs Appropriations Act, 1994 
        (Public Law 103-87) is amended by striking ``6(j) of the Export 
        Administration Act of 1979'' and inserting ``310 of the Export 
        Administration Act of 2001''.
            (7) Section 589(a) of the Foreign Operations, Export 
        Financing, and Related Programs Appropriations Act, 1997 
        (Public Law 104-208) is amended by striking ``6(j) of the 
        Export Administration Act of 1979'' and inserting ``310 of the 
        Export Administration Act of 2001''.
            (8) Section 110 of the International Security and 
        Development Cooperation Act of 1980 (22 U.S.C. 2778a) is 
        amended by striking ``Act of 1979'' and inserting ``Act of 
        2001''.
            (9) Section 203(b)(3) of the International Emergency 
        Economic Powers Act (50 U.S.C. 1702(b)(3)) is amended by 
        striking ``section 5 of the Export Administration Act of 1979, 
        or under section 6 of such Act to the extent that such controls 
        promote the nonproliferation or antiterrorism policies of the 
        United States'' and inserting ``the Export Administration Act 
        of 2001''.
            (10)(A) Section 405(a)(13)(A) of the International 
        Religious Freedom Act of 1998 (22 U.S.C. 6445(a)(13)(A)) is 
        amended by striking ``1979'' and inserting ``2001''.
            (B) Section 423(a) of that Act (22 U.S.C. 6461(a)) is 
        amended by striking ``6(n) of the Export Administration Act of 
        1979 (22 U.S.C. App. 2405(n))'' and inserting ``311 of the 
        Export Administration Act of 2001''.
            (11)(A) Section 103(e)(2)(B)(ii) of the Chemical Weapons 
        Convention Implementation Act of 1998 (22 U.S.C. 
        6713(e)(2)(B)(ii)) is amended to read as follows:
                            ``(ii) Sanctions under export 
                        administration act of 2001.--The authorities of 
                        title III of the Export Administration Act of 
                        2001 shall be used to prohibit the export to a 
                        person described in subparagraph (A) of any 
                        items on the National Security Control List 
                        established under section 202(a) of that 
                        Act.''.
            (B) Section 103(e)(3)(B)(iv) of the Chemical Weapons 
        Convention Implementation Act of 1998 (22 U.S.C. 
        6713(e)(3)(B)(iv)) is amended to read as follows:
                            ``(iv) Sanctions under export 
                        administration act of 2001.--The authorities of 
                        title III of the Export Administration Act of 
                        2001 shall be used to prohibit the export to a 
                        country described in subparagraph (A) of any 
                        items on the National Security Control List 
                        established under section 202(a) of that 
                        Act.''.
            (12) Section 1423(b)(1) of the Defense Against Weapons of 
        Mass Destruction Act of 1996 (50 U.S.C. 2332(b)(1)) is amended 
        by striking ``11 of the Export Administration Act of 1979 (50 
        U.S.C. App. 2410)'' and inserting ``503 of the Export 
        Administration Act of 2001''.
            (13) Section 586G of the Iraq Sanctions Act of 1990 (50 
        U.S.C. 1701 note) is amended--
                    (A) by amending subsection (a)(3) to read as 
                follows:
            ``(3) Exports of certain commodities and technology.--The 
        authorities of titles II and III of the Export Administration 
        Act of 2001 shall be used to prohibit the export to Iraq of any 
        commodities or technology on the Commerce Control List 
        established under that Act.''; and
                    (B) in subsection (b) by striking ``the date 
                described in subsection (m)(1)'' and all that follows 
                through ``shall be deemed'' and inserting ``the dates 
                described in section 301(d)(1) of the Export 
                Administration Act of 2001 shall be deemed''.
            (14) Section 601(a) of the Nuclear Non-Proliferation Act of 
        1978 (22 U.S.C. 3281(a)) is amended--
                    (A) in paragraph (6)--
                            (i) in subparagraph (A)--
                                    (I) in clause (iii), by striking 
                                ``1979'' and inserting ``2001''; and
                                    (II) in clause (iv), by adding 
                                ``and'' after the semicolon; and
                            (ii) in subparagraph (C)--
                                    (I) by redesignating such 
                                subparagraph as paragraph (7) and 
                                aligning the text with the text of 
                                paragraph (6) that precedes 
                                subparagraph (A); and
                                    (II) by inserting ``a description 
                                of'' before ``the progress''; and
                    (B) in the matter that appears following paragraph 
                (7), as so redesignated--
                            (i) by striking ``paragraph (6)'' and 
                        inserting ``paragraphs (6) and (7)''; and
                            (ii) by striking ``12(c)(1) of the Export 
                        Administration Act of 1979'' and inserting 
                        ``602(a) of the Export Administration Act of 
                        2001''.
            (15) Section 304(a)(2) of the Chemical and Biological 
        Weapons Control and Warfare Elimination Act of 1991 (22 U.S.C. 
        5603(a)(2)) is amended by striking ``1979'' and inserting 
        ``2001''.
            (16) Section 307 of the Chemical and Biological Weapons 
        Control and Warfare Elimination Act of 1991 (22 U.S.C. 5605) is 
        amended--
                    (A) by amending paragraph (5) of subsection (a) to 
                read as follows:
            ``(5) Exports of certain goods and technology.--The 
        authorities of title III of the Export Administration Act of 
        2001 shall be used to prohibit the export to that country of 
        any goods or technology on the National Security Control List 
        established under section 202 of that Act.'';
                    (B) in subsection (b)(2)(C) by striking ``section 6 
                of the Export Administration Act of 1979'' and 
                inserting ``title III of the Export Administration Act 
                of 2001''; and
                    (C) in subsection (e)(1)(B)--
                            (i) in the first sentence, by striking 
                        ``subsection (p) of section 6 of the Export 
                        Administration Act of 1979 (50 U.S.C. App. 
                        2405), as that subsection is so redesignated by 
                        section 304(b) of this title, which are 
                        applicable to exports prohibited under section 
                        6 of that Act'' and inserting ``section 301(d) 
                        of the Export Administration Act of 2001, which 
                        are applicable to exports prohibited under 
                        title III of that Act''; and
                            (ii) in the last sentence, by striking ``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 6(p) of that Act'' 
                        and inserting ``a serious threat to a foreign 
                        policy interest of the United States, within 
                        the meaning of section 301(d)(2)(A) of the 
                        Export Administration Act of 2001''.
            (17) Section 1705(c)(1) of the Cuban Democracy Act of 1992 
        (22 U.S.C. 6004(c)(1)) is amended by striking ``5(m) of the 
        Export Administration Act of 1979'' and inserting ``204(a) of 
        the Export Administration Act of 2001''.
            (18)(A) Section 6(2)(i) of the Iran and Libya Sanctions Act 
        of 1996 (50 U.S.C. 1701 note) is amended by striking ``1979'' 
        and inserting ``2001''.
            (B) Section 8(a)(2) of the Iran and Libya Sanctions Act of 
        1996 is amended by striking ``6(j) of the Export Administration 
        Act of 1979'' and inserting ``310 of the Export Administration 
        Act of 2001''.
            (C) Section 14 of the Iran and Libya Sanctions Act of 1996 
        is amended--
                    (i) in paragraph (3), by striking ``(50 U.S.C. App. 
                2410a(e)(1))'' and inserting ``(as in effect on August 
                20, 2001)'';
                    (ii) in paragraph (6), by striking ``(50 U.S.C. 
                App. 2410a(e)(2))'' and inserting ``(as in effect on 
                August 20, 2001)''; and
                    (iii) in paragraph (8), by striking ``(50 U.S.C. 
                App. 2415)'' and inserting ``(as in effect on August 
                20, 2001)''.
            (19) Section 1133(a)(3) of the Food Security Act of 1985 (7 
        U.S.C. 1736y(3)) is amended by striking ``Export Administration 
        Act'' and inserting ``International Emergency Economic Powers 
        Act or in time of war under the Trading with the Enemy Act''.
            (20) Section 208(a) of the Agricultural Trade Suspension 
        Adjustment Act of 1980 (7 U.S.C. 4001(a)) is amended by 
        striking ``for reasons of national security or foreign policy 
        under the Export Administration Act of 1979'' and inserting 
        ``under title II or III of the Export Administration Act of 
        2001''.
            (21) Section 411(a)(1) of the Agricultural Trade Act of 
        1978 (7 U.S.C. 5671(a)(1)) is amended by striking ``for reasons 
        of national security or foreign policy under the Export 
        Administration Act of 1979 (50 U.S.C. App. 2401 et seq.)'' and 
        inserting ``under title II or III of the Export Administration 
        Act of 2001''.
            (22) Section 302(e) of the Bill Emerson Humanitarian Trust 
        Act (7 U.S.C. 1736f-1(e)) is amended--
                    (A) by striking ``shall not be--
            ``(1) considered''
                and inserting ``shall not be considered''; and
                    (B) by striking ``; and
            ``(2) subject''
                and all that follows through the end and inserting a 
                period.
            (23)(A) Section 951(e)(2)(B) of title 18, United States 
        Code, is amended by striking ``or under section 11 of the 
        Export Administration Act of 1979'' and inserting ``, under 
        section 11 of the Export Administration Act of 1979 (prior to 
        its repeal by the Export Administration Act of 2001), or under 
        section 503 of the Export Administration Act of 2001''.
            (B) Section 1956(c)(7)(D) of title 18, United States Code, 
        is amended by striking ``section 11 (relating to violations) of 
        the Export Administration Act of 1979'' and inserting ``section 
        503 (relating to penalties) of the Export Administration Act of 
        2001''.
            (C) Section 2332d(a) of title 18, United States Code, is 
        amended by striking ``section 6(j) of the Export Administration 
        Act (50 U.S.C. App. 2405)'' and inserting ``section 310 of the 
        Export Administration Act of 2001''.
            (24)(A) Section 130(a) of title 10, United States Code, is 
        amended by striking ``1979 (50 U.S.C. App. 2401-2420)'' and 
        inserting ``2001''.
            (B) Section 2249a(a)(1) of title 10, United States Code, is 
        amended by striking ``6(j)(1)(A) of the Export Administration 
        Act of 1979 (50 U.S.C. App. 2405(j))'' and inserting 
        ``310(a)(1)(A) of the Export Administration Act of 2001''.
            (C) Section 2327(b)(2) of title 10, United States Code, is 
        amended by striking ``6(j)(1)(A) of the Export Administration 
        Act of 1979 (50 U.S.C. App. 2405(j)(1)(A))'' and inserting 
        ``310(a)(1)(A) of the Export Administration Act of 2001''.
            (D) Section 2410i(a) of title 10, United States Code, is 
        amended by striking ``3(5)(A) of the Export Administration Act 
        of 1979 (50 U.S.C. App. 2402(5)(A))'' and inserting ``502(a) of 
        the Export Administration Act of 2001''.
            (25) Section 233 of the Trade Expansion Act of 1962 (19 
        U.S.C. 1864) is amended--
                    (A) by striking ``(50 U.S.C. App. 2404),'' and 
                inserting ``(as in effect prior to its repeal by the 
                Export Administration Act of 2001), any export control 
                imposed under title II of the Export Administration Act 
                of 2001,''; and
                    (B) by striking ``that section'' and inserting 
                ``either such section''.
            (26) Section 502(b)(2)(F) of the Trade Act of 1974 (19 
        U.S.C. 2462(b)(2)(F)) is amended by striking ``6(j)(1)(A) of 
        the Export Administration Act of 1979'' and inserting 
        ``310(a)(1) of the Export Administration Act of 2001''.
            (27) Section 133 of the Uruguay Round Agreements Act (19 
        U.S.C. 3553) is amended by striking ``section 8(a) of the 
        Export Administration Act of 1979 (50 U.S.C. App. 2407(a)) (as 
        in effect on August 20, 1994)'' and inserting ``section 502 of 
        the Export Administration Act of 2001''.
            (28) Section 901(j)(2)(A)(iv) of the Internal Revenue Code 
        of 1986 (26 U.S.C. 901(j)(2)(A)(iv)) is amended by striking 
        ``6(j) of the Export Administration Act of 1979, as amended'' 
        and inserting ``310 of the Export Administration Act of 2001''.
            (29) Section 927(a)(2) of the Internal Revenue Code of 1986 
        (26 U.S.C. 927(a)(2)) is amended--
                    (A) in subparagraph (C), by adding ``or'' after the 
                comma;
                    (B) by striking subparagraph (D);
                    (C) by redesignating subparagraph (E) as 
                subparagraph (D); and
                    (D) by striking ``subparagraph (E)'' and inserting 
                ``subparagraph (D)''.
          (30) Section 943(a)(3) of the Internal Revenue Code of 1986 
        (26 U.S.C. 943(a)(3)) is amended--
                    (A) in suparagraph (C), by adding ``or'' after the 
                comma;
                    (B) by striking subparagraph (D);
                    (C) by redesignating subparagraph (E) as 
                subparagraph (D); and
                    (D) by striking ``subparagraph (E)'' and inserting 
                ``subparagraph (D)''.
            (31) Section 993(c)(2) of the Internal Revenue Code of 1986 
        (26 U.S.C. 993(c)(2)) is amended--
                    (A) in subparagraph (C), by adding ``or'' after the 
                comma;
                    (B) by striking subparagraph (D);
                    (C) by redesignating subparagraph (E) as 
                subparagraph (D); and
                    (D) by striking ``subparagraph (E)'' and inserting 
                ``subparagraph (D)''.
            (32) Section 254(e)(3) of the Energy Policy and 
        Conservation Act (42 U.S.C. 6274(e)(3)) is amended by striking 
        ``12 of the Export Administration Act of 1979'' and inserting 
        ``602 of the Export Administration Act of 2001''.
            (33) Section 721(f)(4)(A) of the Defense Production Act of 
        1950 (50 U.S.C. App. 2170(f)(4)(A)) is amended--
                    (A) in clause (i), by striking ``6(j) of the Export 
                Administration Act of 1979'' and inserting ``310 of the 
                Export Administration Act of 2001'';
                    (B) in clause (ii), by striking ``section 6(l) of 
                the Export Administration Act of 1979'' and inserting 
                ``the Export Administration Act of 2001''; and
                    (C) in clause (iii), by striking ``section 6(m) of 
                the Export Administration Act of 1979'' and inserting 
                ``the Export Administration Act of 2001''.
            (34) Section 275 of the National Defense Authorization Act 
        for Fiscal Years 1988 and 1989 (15 U.S.C. 4605) is amended by 
        striking ``1979 (50 U.S.C. App. 2401 et seq.)'' and inserting 
        ``2001''.
            (35) Section 1605(a)(7)(A) of title 28, United States Code, 
        is amended by striking ``section 6(j) of the Export 
        Administration Act of 1979 (50 U.S.C. App. 2405(j))'' and 
        inserting ``section 310 of the Export Administration Act of 
        2001''.
            (36) Section 1621(a) of the International Financial 
        Institutions Act (22 U.S.C. 262p-4q(a)) is amended by striking 
        ``section 6(j) of the Export Administration Act of 1979 (50 
        U.S.C. App. 2405(j))'' and inserting ``section 310 of the 
        Export Administration Act of 2001''.
            (37) Subsection (f) of section 491 and section 499 of the 
        Forest Resources Conservation and Shortage Relief Act of 1990 
        (16 U.S.C. 620c(f) and 620j) are repealed.
            (38) Section 904(2)(B) of the Trade Sanctions Reform and 
        Export Enhancement Act of 2000 (22 U.S.C. 7203) is amended by 
        striking ``Export Administration Act of 1979'' and inserting 
        ``Export Administration Act of 2001''.
            (39) Section 983(i)(2) of title 18, United States Code (as 
        added by Public Law 106-185), is amended--
                    (A) by striking the ``or'' at the end of 
                subparagraph (D);
                    (B) by striking the period at the end of 
                subparagraph (E) and inserting ``; or''; and
                    (C) by inserting after subparagraph (E) the 
                following new subparagraph:
                    ``(F) the Export Administration Act of 2001.''.
    (j) Civil Aircraft Equipment.--Notwithstanding any other provision 
of law, any product that--
            (1) is standard equipment, certified by the Federal 
        Aviation Administration, in civil aircraft, and
            (2) is an integral part of such aircraft, shall be subject 
        to export control only under this Act. Such product shall not 
        be subject to controls under section 38(b)(2) of the Arms 
        Export Control Act (22 U.S.C. 2778(b)).
<DELETED>    (k) Repeal of Certain Export Controls.--Subtitle B of 
title XII of division A of the National Defense Authorization Act for 
Fiscal Year 1998 (50 U.S.C. App. 2404 note) is repealed.</DELETED>

SEC. <DELETED>808</DELETED> 708. 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, the Export Administration Act of 
        1979, or the International Emergency Economic Powers Act when 
        invoked to maintain and continue the Export Administration 
        regulations, or
            (2) those provisions of the Arms Export Control Act which 
        are amended by section 702,
and are in effect on the date of enactment of this Act, shall continue 
in effect according to their terms until modified, superseded, set 
aside, or revoked under this Act or the Arms Export Control Act.
    (b) Administrative and Judicial Proceedings.--
            (1) Export administration act.--This Act shall not affect 
        any administrative or judicial proceedings commenced or any 
        application for a license made, under the Export Administration 
        Act of 1979 or pursuant to Executive Order 12924, which is 
        pending at the time this Act 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 been repealed.
            (2) Other provisions of law.--This Act shall not affect any 
        administrative or judicial proceeding commenced or any 
        application for a license made, under those provisions of the 
        Arms Export Control Act which are amended by section 702, if 
        such proceeding or application is pending at the time this Act 
        takes effect. Any such proceeding, and any action on such 
        application, shall continue under those provisions as if those 
        provisions had not been amended by section 702.
    (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, or Executive Order 12924, that 
is in effect on the day before the date of enactment of this Act, 
shall, for purposes of this title or any other provision of law, be 
deemed to be made under section 310 of this Act until superseded by a 
determination under such section 310.
    (d) Lawful Intelligence Activities.--The prohibitions otherwise 
applicable under this Act do not apply with respect to any transaction 
subject to the reporting requirements of title V of the National 
Security Act of 1947. Notwithstanding any other provision of this Act, 
nothing shall affect the responsibilities and authorities of the 
Director of Central Intelligence under section 103 of the National 
Security Act of 1947.
    (e) Implementation.--The Secretary shall make any revisions to the 
Export Administration regulations required by this Act no later than 
180 days after the date of enactment of this Act.




                                                 Union Calendar No. 212

107th CONGRESS

  2d Session

                               H. R. 2581

                  [Report No. 107-297, Parts I and II]

_______________________________________________________________________

                                 A BILL

    To provide authority to control exports, and for other purposes.

_______________________________________________________________________

                             March 8, 2002

     Reported from the Committee on Armed Services with amendments

                             March 8, 2002

  The Committees on Agriculture, Energy and Commerce, the Judiciary, 
     Rules, Ways and Means, and the Permanent Select Committee on 
Intelligence discharged; committed to the Committee of the Whole House 
          on the State of the Union and ordered to be printed