    [Congressional Bills 107th Congress]
    [From the U.S. Government Publishing Office]
    [S. 149 Reported in Senate (RS)]

                                                            Calendar No. 26
    107th CONGRESS
      1st Session
                                     S. 149

                              [Report No. 107-10]

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

    _______________________________________________________________________

                       IN THE SENATE OF THE UNITED STATES

                                January 23, 2001

    Mr. Enzi (for himself, Mr. Gramm, Mr. Sarbanes, Mr. Johnson, Mr. Hagel,
        Mr. Roberts, Ms. Stabenow, Mr. Bayh, Mr. Bennett, Mr. Reid, Ms.
     Cantwell, Mr. Bunning, and Mr. Crapo) introduced the following bill;
    which was read twice and referred to the Committee on Banking, Housing,
                               and Urban Affairs

                                 April 2, 2001

                    Reported by Mr. Gramm, with an amendment
     [Strike out all after the enacting clause and insert the part printed
                                   in italic]

    _______________________________________________________________________

                                     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,

    <DELETED>SECTION 1. SHORT TITLE; TABLE OF CONTENTS.</DELETED>

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

    <DELETED>Sec. 1. Short title; table of contents.
    <DELETED>Sec. 2. Definitions.
                      <DELETED>TITLE I--GENERAL AUTHORITY

    <DELETED>Sec. 101. Commerce Control List.
    <DELETED>Sec. 102. Delegation of authority.
    <DELETED>Sec. 103. Public information; consultation requirements.
    <DELETED>Sec. 104. Right of export.
    <DELETED>Sec. 105. Export control advisory committees.
    <DELETED>Sec. 106. President's Technology Export Council.
    <DELETED>Sec. 107. Prohibition on charging fees.
              <DELETED>TITLE II--NATIONAL SECURITY EXPORT CONTROLS

                 <DELETED>Subtitle A--Authority and Procedures

    <DELETED>Sec. 201. Authority for national security export controls.
    <DELETED>Sec. 202. National Security Control List.
    <DELETED>Sec. 203. Country tiers.
    <DELETED>Sec. 204. Incorporated parts and components.
    <DELETED>Sec. 205. Petition process for modifying export status.
        <DELETED>Subtitle B--Foreign Availability and Mass-Market Status

    <DELETED>Sec. 211. Determination of foreign availability and mass-
                                market status.
    <DELETED>Sec. 212. Presidential set-aside of foreign availability
                                determination.
    <DELETED>Sec. 213. Presidential set-aside of mass-market status
                                determination.
    <DELETED>Sec. 214. Office of Technology Evaluation.
               <DELETED>TITLE III--FOREIGN POLICY EXPORT CONTROLS

    <DELETED>Sec. 301. Authority for foreign policy export controls.
    <DELETED>Sec. 302. Procedures for imposing controls.
    <DELETED>Sec. 303. Criteria for foreign policy export controls.
    <DELETED>Sec. 304. Presidential report before imposition of control.
    <DELETED>Sec. 305. Imposition of controls.
    <DELETED>Sec. 306. Deferral authority.
    <DELETED>Sec. 307. Review, renewal, and termination.
    <DELETED>Sec. 308. Termination of controls under this title.
    <DELETED>Sec. 309. Compliance with international obligations.
    <DELETED>Sec. 310. Designation of countries supporting international
                                terrorism.
     <DELETED>TITLE IV--EXEMPTION FOR AGRICULTURAL COMMODITIES, MEDICINE,
                              AND MEDICAL SUPPLIES

    <DELETED>Sec. 401. Exemption for agricultural commodities, medicine,
                                and medical supplies.
    <DELETED>Sec. 402. Termination of export controls required by law.
    <DELETED>Sec. 403. Exclusions.
       <DELETED>TITLE V--PROCEDURES FOR EXPORT LICENSES AND INTERAGENCY
                               DISPUTE RESOLUTION

    <DELETED>Sec. 501. Export license procedures.
    <DELETED>Sec. 502. Interagency dispute resolution process.
       <DELETED>TITLE VI--INTERNATIONAL ARRANGEMENTS; FOREIGN BOYCOTTS;
                           SANCTIONS; AND ENFORCEMENT

    <DELETED>Sec. 601. International arrangements.
    <DELETED>Sec. 602. Foreign boycotts.
    <DELETED>Sec. 603. Penalties.
    <DELETED>Sec. 604. Multilateral export control regime violation
                                sanctions.
    <DELETED>Sec. 605. Missile proliferation control violations.
    <DELETED>Sec. 606. Chemical and biological weapons proliferation
                                sanctions.
    <DELETED>Sec. 607. Enforcement.
    <DELETED>Sec. 608. Administrative procedure.
          <DELETED>TITLE VII--EXPORT CONTROL AUTHORITY AND REGULATIONS

    <DELETED>Sec. 701. Export control authority and regulations.
    <DELETED>Sec. 702. Confidentiality of information.
                 <DELETED>TITLE VIII--MISCELLANEOUS PROVISIONS

    <DELETED>Sec. 801. Annual and periodic reports.
    <DELETED>Sec. 802. Technical and conforming amendments.
    <DELETED>Sec. 803. Savings provisions.

    <DELETED>SEC. 2. DEFINITIONS.</DELETED>

    <DELETED>     In this Act:</DELETED>
            <DELETED>    (1) Affiliate.--The term ``affiliate'' includes
            both governmental entities and commercial entities that are
            controlled in fact by the government of a country.</DELETED>
            <DELETED>    (2) Agriculture commodity.--The term ``agriculture
            commodity'' means any agricultural commodity, food, fiber, or
            livestock (including livestock, as defined in section 602(2) of
            the Emergency Livestock Feed Assistance Act of 1988 (title VI
            of the Agricultural Act of 1949 (7 U.S.C. 1471(2))), and
            including insects), and any product thereof.</DELETED>
            <DELETED>    (3) Control or controlled.--The terms ``control''
            and ``controlled'' mean any requirement, condition,
            authorization, or prohibition on the export or reexport of an
            item.</DELETED>
            <DELETED>    (4) Control list.--The term ``Control List'' means
            the Commerce Control List established under section
            101.</DELETED>
            <DELETED>    (5) Controlled country.--The term ``controlled
            country'' means a country with respect to which exports are
            controlled under section 201 or 301.</DELETED>
            <DELETED>    (6) Controlled item.--The term ``controlled item''
            means an item the export of which is controlled under this
            Act.</DELETED>
            <DELETED>    (7) Country.--The term ``country'' means a
            sovereign country or an autonomous customs territory.</DELETED>
            <DELETED>    (8) Country supporting international terrorism.--
            The term ``country supporting international terrorism'' means a
            country designated by the Secretary of State pursuant to
            section 310.</DELETED>
            <DELETED>    (9) Department.--The term ``Department'' means the
            Department of Commerce.</DELETED>
            <DELETED>    (10) Export.--</DELETED>
                    <DELETED>    (A) The term ``export'' means--</DELETED>
                            <DELETED>    (i) an actual shipment, transfer,
                            or transmission of an item out of the United
                            States;</DELETED>
                            <DELETED>    (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;
                            or</DELETED>
                            <DELETED>    (iii) 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.</DELETED>
                    <DELETED>    (B) The term includes a
                    reexport.</DELETED>
            <DELETED>    (11) Foreign availability status.--The term
            ``foreign availability status'' means the status described in
            section 211(d)(1).</DELETED>
            <DELETED>    (12) Foreign person.--The term ``foreign person''
            means--</DELETED>
                    <DELETED>    (A) an individual who is not--</DELETED>
                            <DELETED>    (i) a United States
                            citizen;</DELETED>
                            <DELETED>    (ii) an alien lawfully admitted
                            for permanent residence to the United States;
                            or</DELETED>
                            <DELETED>    (iii) a protected individual as
                            defined in section 274B(a)(3) of the
                            Immigration and Nationality Act. (8 U.S.C.
                            1324b(a)(3));</DELETED>
                    <DELETED>    (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</DELETED>
                    <DELETED>    (C) any governmental entity of a foreign
                    country.</DELETED>
            <DELETED>    (13) Item.--</DELETED>
                    <DELETED>    (A) In general.--The term ``item'' means
                    any good, technology, or service.</DELETED>
                    <DELETED>    (B) Other definitions.--In this
                    paragraph:</DELETED>
                            <DELETED>    (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>
                            <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>
                            <DELETED>    (iii) Service.--The term
                            ``service'' means any act of assistance, help
                            or aid.</DELETED>
            <DELETED>    (14) Mass-market status.--The term ``mass-market
            status'' means the status described in section
            211(d)(2).</DELETED>
            <DELETED>    (15) 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.</DELETED>
            <DELETED>    (16) National security control list.--The term
            ``National Security Control List'' means the list established
            under section 202(a).</DELETED>
            <DELETED>    (17) Person.--The term ``person'' includes--
            </DELETED>
                    <DELETED>    (A) any individual, or partnership,
                    corporation, business association, society, trust,
                    organization, or any other group created or organized
                    under the laws of a country; and</DELETED>
                    <DELETED>    (B) any government, or any governmental
                    entity, including any governmental entity operating as
                    a business enterprise.</DELETED>
            <DELETED>    (18) Reexport.--The term ``reexport'' means the
            shipment, transfer, transshipment, or diversion of items from
            one foreign country to another.</DELETED>
            <DELETED>    (19) Secretary.--The term ``Secretary'' means the
            Secretary of Commerce.</DELETED>
            <DELETED>    (20) 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)).</DELETED>
            <DELETED>    (21) United states person.--The term ``United
            States person'' means--</DELETED>
                    <DELETED>    (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);</DELETED>
                    <DELETED>    (B) any domestic concern (including any
                    permanent domestic establishment of any foreign
                    concern); and</DELETED>
                    <DELETED>    (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.</DELETED>

                 <DELETED>TITLE I--GENERAL AUTHORITY</DELETED>

    <DELETED>SEC. 101. COMMERCE CONTROL LIST.</DELETED>

    <DELETED>    (a) In General.--Under such conditions as the Secretary
    may impose, consistent with the provisions of this Act, the Secretary--
    </DELETED>
            <DELETED>    (1) shall establish and maintain a Commerce
            Control List (in this Act referred to as the ``Control List'')
            consisting of items the export of which are subject to
            licensing or other authorization or requirement; and</DELETED>
            <DELETED>    (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.</DELETED>
    <DELETED>    (b) Types of License or Other Authorization.--The types of
    license or other authorization referred to in subsection (a)(2) include
    the following:</DELETED>
            <DELETED>    (1) Specific exports.--A license that authorizes a
            specific export.</DELETED>
            <DELETED>    (2) Multiple exports.--A license that authorizes
            multiple exports in lieu of a license for each such
            export.</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (4) License exception.--Authority to export an
            item on the Control List without prior license or notification
            in lieu of a license.</DELETED>
    <DELETED>    (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, to replace on a
    one-for-one basis parts that were in an item that was lawfully exported
    from the United States, unless--</DELETED>
            <DELETED>    (1) the Secretary determines that such license is
            required to export such parts; or</DELETED>
            <DELETED>    (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.</DELETED>
    <DELETED>    (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.</DELETED>
    <DELETED>    (e) Regulations.--The Secretary may prescribe such
    regulations as are necessary to carry out the provisions of this
    Act.</DELETED>

    <DELETED>SEC. 102. DELEGATION OF AUTHORITY.</DELETED>

    <DELETED>    (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.</DELETED>
    <DELETED>    (b) Exceptions.--</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (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.</DELETED>

    <DELETED>SEC. 103. PUBLIC INFORMATION; CONSULTATION
                  REQUIREMENTS.</DELETED>

    <DELETED>    (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.</DELETED>
    <DELETED>    (b) Consultation With Persons Affected.--The Secretary
    shall consult regularly with representatives of a broad spectrum of
    enterprises, labor organizations, and citizens interested in or
    affected by export controls in order to obtain their views on United
    States export control policy and the foreign availability or mass-
    market status of controlled items.</DELETED>

    <DELETED>SEC. 104. RIGHT OF EXPORT.</DELETED>

    <DELETED>    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.</DELETED>

    <DELETED>SEC. 105. EXPORT CONTROL ADVISORY COMMITTEES.</DELETED>

    <DELETED>    (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 under the International Emergency Economic Powers 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 by the business community on the export control
    advisory committees.</DELETED>
    <DELETED>    (b) Functions.--</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (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.</DELETED>
    <DELETED>    (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.</DELETED>
    <DELETED>    (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.</DELETED>
    <DELETED>    (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,
    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.</DELETED>

    <DELETED>SEC. 106. PRESIDENT'S TECHNOLOGY EXPORT COUNCIL.</DELETED>

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

    <DELETED>SEC. 107. PROHIBITION ON CHARGING FEES.</DELETED>

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

         <DELETED>TITLE II--NATIONAL SECURITY EXPORT CONTROLS</DELETED>

            <DELETED>Subtitle A--Authority and Procedures</DELETED>

    <DELETED>SEC. 201. AUTHORITY FOR NATIONAL SECURITY EXPORT
                  CONTROLS.</DELETED>

    <DELETED>    (a) Authority.--</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (2) Exercise of authority.--The authority
            contained in this subsection shall be exercised by the
            Secretary, in consultation with the Secretary of Defense, the
            intelligence agencies, and such other departments and agencies
            as the Secretary considers appropriate.</DELETED>
    <DELETED>    (b) Purposes.--The purposes of national security export
    controls are the following:</DELETED>
            <DELETED>    (1) To restrict the export of items that would
            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.</DELETED>
            <DELETED>    (2) To stem the proliferation of weapons of mass
            destruction, and the means to deliver them, and other
            significant military capabilities by--</DELETED>
                    <DELETED>    (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;</DELETED>
                    <DELETED>    (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</DELETED>
                    <DELETED>    (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>
            <DELETED>    (3) To deter acts of international
            terrorism.</DELETED>
    <DELETED>    (c) End Use and End User Controls.--Notwithstanding any
    other provision of this title, controls may be imposed, based on the
    end use or end user, on the export of any item, that could materially
    contribute to the proliferation of weapons of mass destruction or the
    means to deliver them.</DELETED>
    <DELETED>    (d) Enhanced Controls.--Notwithstanding any other
    provisions of this title, the President may determine that applying the
    provisions of section 204(b) or section 211 with respect to an item on
    the National Security Control List would constitute a significant
    threat to the national security of the United States and that such item
    requires enhanced control. If the President determines that enhanced
    control should apply to such item, it shall be excluded from the
    provisions of section 204(b), section 211, or both, until such time as
    the President shall determine that such enhanced control should no
    longer apply to such item. The President may not delegate the authority
    provided for in this subsection.</DELETED>

    <DELETED>SEC. 202. NATIONAL SECURITY CONTROL LIST.</DELETED>

    <DELETED>    (a) Establishment of List.--</DELETED>
            <DELETED>    (1) Establishment.--The Secretary shall establish
            and maintain a National Security Control List as part of the
            Control List.</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (3) Identification of items for national security
            control list.--The Secretary, with the concurrence of the
            Secretary of Defense 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 provided 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 periodically
            review and, with the concurrence of the Secretary of Defense
            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.</DELETED>
    <DELETED>    (b) Risk Assessment.--</DELETED>
            <DELETED>    (1) Requirement.--In establishing and maintaining
            the National Security Control List, the risk factors set forth
            in paragraph (2) shall be considered, weighing national
            security concerns and economic costs.</DELETED>
            <DELETED>    (2) Risk factors.--The risk factors referred to in
            paragraph (1), with respect to each item, are as
            follows:</DELETED>
                    <DELETED>    (A) The characteristics of the
                    item.</DELETED>
                    <DELETED>    (B) The threat, if any, to the United
                    States or the national security interest of the United
                    States from the misuse or diversion of such
                    item.</DELETED>
                    <DELETED>    (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.</DELETED>
                    <DELETED>    (D) The threat to the national security
                    interests of the United States if the item is not
                    controlled.</DELETED>
                    <DELETED>    (E) Any other appropriate risk
                    factors.</DELETED>
    <DELETED>    (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.</DELETED>

    <DELETED>SEC. 203. COUNTRY TIERS.</DELETED>

    <DELETED>    (a) In General.--</DELETED>
            <DELETED>    (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--</DELETED>
                    <DELETED>    (A) establish and maintain a country
                    tiering system in accordance with subsection (b);
                    and</DELETED>
                    <DELETED>    (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.</DELETED>
            <DELETED>    (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
            such other departments and agencies as the President considers
            appropriate.</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (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.</DELETED>
    <DELETED>    (b) Tiers.--</DELETED>
            <DELETED>    (1) In general.--The President shall establish a
            country tiering system consisting of 5 tiers for purposes of
            this section, ranging from tier 1 through tier 5.</DELETED>
            <DELETED>    (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 tier 1. Countries that
            represent the highest risk of diversion or misuse of an item on
            the National Security Control List shall be assigned to tier
            5.</DELETED>
            <DELETED>    (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 tier 2, 3, or 4, respectively, based on the
            assessments required under subsection (c).</DELETED>
    <DELETED>    (c) Assessments.--The President shall make an assessment
    of each country in assigning a country tier taking into consideration
    risk factors including the following:</DELETED>
            <DELETED>    (1) The present and potential relationship of the
            country with the United States.</DELETED>
            <DELETED>    (2) The present and potential relationship of the
            country with countries friendly to the United States and with
            countries hostile to the United States.</DELETED>
            <DELETED>    (3) The country's capabilities regarding chemical,
            biological, and nuclear weapons and the country's membership
            in, and level of compliance with, relevant multilateral export
            control regimes.</DELETED>
            <DELETED>    (4) The country's capabilities regarding missile
            systems and the country's membership in, and level of
            compliance with, relevant multilateral export control
            regimes.</DELETED>
            <DELETED>    (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 as defined in section 2(15) pursuant to
            an international agreement to which the United States is a
            party.</DELETED>
            <DELETED>    (6) The country's other military capabilities and
            the potential threat posed by the country to the United States
            or its allies.</DELETED>
            <DELETED>    (7) The effectiveness of the country's export
            control system.</DELETED>
            <DELETED>    (8) The level of the country's cooperation with
            United States export control enforcement and other
            efforts.</DELETED>
            <DELETED>    (9) The risk of export diversion by the country to
            a higher tier country.</DELETED>
            <DELETED>    (10) The designation of the country as a country
            supporting international terrorism under section 310.</DELETED>
    <DELETED>    (d) Tier Application.--The country tiering system shall be
    used in the determination of license requirements pursuant to section
    201(a)(1).</DELETED>

    <DELETED>SEC. 204. INCORPORATED PARTS AND COMPONENTS.</DELETED>

    <DELETED>    (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--</DELETED>
            <DELETED>    (1) are essential to the functioning of the
            item,</DELETED>
            <DELETED>    (2) are customarily included in sales of the item
            in countries other than controlled countries, and</DELETED>
            <DELETED>    (3) comprise 25 percent or less of the total value
            of the item,</DELETED>
    <DELETED>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.</DELETED>
    <DELETED>    (b) Reexports of Foreign-Made Items Incorporating United
    States Controlled Content.--</DELETED>
            <DELETED>    (1) In general.--No authority or permission may be
            required under this title to reexport to a country (other than
            a country designated as a country supporting international
            terrorism pursuant to section 310) 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.</DELETED>
            <DELETED>    (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--</DELETED>
                    <DELETED>    (A) are subject to the jurisdiction of the
                    United States;</DELETED>
                    <DELETED>    (B) are incorporated into the item;
                    and</DELETED>
                    <DELETED>    (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.</DELETED>

    <DELETED>SEC. 205. PETITION PROCESS FOR MODIFYING EXPORT
                  STATUS.</DELETED>

    <DELETED>    (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.</DELETED>
    <DELETED>    (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.</DELETED>

           <DELETED>Subtitle B--Foreign Availability and Mass-Market
                                Status</DELETED>

    <DELETED>SEC. 211. DETERMINATION OF FOREIGN AVAILABILITY AND MASS-
                  MARKET STATUS.</DELETED>

    <DELETED>    (a) In General.--The Secretary shall--</DELETED>
            <DELETED>    (1) on a continuing basis,</DELETED>
            <DELETED>    (2) upon a request from the Office of Technology
            Evaluation, or</DELETED>
            <DELETED>    (3) upon receipt of a petition filed by an
            interested party,</DELETED>
    <DELETED>review and determine the foreign availability and the mass-
    market status of any item the export of which is controlled under this
    title.</DELETED>
    <DELETED>    (b) Petition and Consultation.--</DELETED>
            <DELETED>    (1) In general.--The Secretary shall establish a
            process for an interested party to petition the Secretary for a
            determination that an item has a foreign availability or mass-
            market status. In evaluating and making a determination with
            respect to a petition filed under this section, the Secretary
            shall consult with the Secretary of Defense, Secretary of
            State, and other appropriate Government agencies and with the
            Office of Technology Evaluation (established pursuant to
            section 214).</DELETED>
            <DELETED>    (2) Time for making determination.--The Secretary
            shall, within 6 months after receiving a petition described in
            subsection (a)(3), determine 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>
    <DELETED>    (c) Result of Determination.--In any case in which the
    Secretary determines, in accordance with procedures and criteria which
    the Secretary shall by regulation establish, that an item described in
    subsection (a) has--</DELETED>
            <DELETED>    (1) a foreign availability status, or</DELETED>
            <DELETED>    (2) a mass-market status,</DELETED>
    <DELETED>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
    or under section 1211 of the National Defense Authorization Act of
    Fiscal Year 1998 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.</DELETED>
    <DELETED>    (d) Criteria for Determining Foreign Availability and
    Mass-Market Status.--</DELETED>
            <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>
            <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>
            <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, the properties, nature,
                    and quality of the item.</DELETED>
                    <DELETED>    (B) Directly competitive item.--</DELETED>
                            <DELETED>    (i) In general.--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>    (ii) Exception.--An item is not
                            directly competitive with a controlled item if
                            the item is substantially inferior to the
                            controlled item with respect to characteristics
                            that resulted in the export of the item being
                            controlled.</DELETED>

    <DELETED>SEC. 212. PRESIDENTIAL SET-ASIDE OF FOREIGN AVAILABILITY
                  DETERMINATION.</DELETED>

    <DELETED>    (a) Criteria for Presidential Set-Aside.--</DELETED>
            <DELETED>    (1) General criteria.--</DELETED>
                    <DELETED>    (A) In general.--If the President
                    determines that--</DELETED>
                            <DELETED>    (i)(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, and</DELETED>
                            <DELETED>    (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</DELETED>
                            <DELETED>    (ii) failure to control an item
                            would be contrary to the provisions of section
                            309,</DELETED>
                    <DELETED>the President may set aside the Secretary's
                    determination of foreign availability status with
                    respect to the item.</DELETED>
                    <DELETED>    (B) Nondelegation.--The President may not
                    delegate the authority provided for in this
                    paragraph.</DELETED>
            <DELETED>    (2) Report to congress.--The President shall
            promptly--</DELETED>
                    <DELETED>    (A) report any set-aside determination
                    described in paragraph (1), along with the specific
                    reasons why the determination was made, to the
                    Committee on Banking, Housing, and Urban Affairs of the
                    Senate and the Committee on International Relations of
                    the House of Representatives; and</DELETED>
                    <DELETED>    (B) publish the determination in the
                    Federal Register.</DELETED>
    <DELETED>    (b) Presidential Action in Case of Set-Aside.--</DELETED>
            <DELETED>    (1) In general.--</DELETED>
                    <DELETED>    (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.</DELETED>
                    <DELETED>    (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.</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (3) Expiration of presidential set-aside.--A
            determination by the President described in subsection
            (a)(1)(A) shall cease to apply with respect to an item on the
            earlier of--</DELETED>
                    <DELETED>  (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;</DELETED>
                    <DELETED>    (B) the date on which the negotiations
                    described in paragraph (1) have terminated without
                    achieving an agreement to eliminate foreign
                    availability;</DELETED>
                    <DELETED>    (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</DELETED>
                    <DELETED>    (D) the date that is 18 months after the
                    date on which the determination described in subsection
                    (a)(1)(A) is made if the President has been unable to
                    achieve an agreement to eliminate foreign availability
    within that 18-month period.</DELETED>
            <DELETED>    (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.</DELETED>

    <DELETED>SEC. 213. PRESIDENTIAL SET-ASIDE OF MASS-MARKET STATUS
                  DETERMINATION.</DELETED>

    <DELETED>    (a) Criteria for Presidential Set-Aside.--</DELETED>
            <DELETED>    (1) General criteria.--If the President determines
            that--</DELETED>
                    <DELETED>    (A)(i) decontrolling or failing to control
                    an item constitutes a serious threat to the national
                    security of the United States, and</DELETED>
                    <DELETED>    (ii) export controls on the item would
                    advance the national security interests of the United
                    States, or</DELETED>
                    <DELETED>    (B) failure to control an item would be
                    contrary to the provisions of section 309,</DELETED>
            <DELETED>the President may set aside the Secretary's
            determination of mass-market status with respect to the
            item.</DELETED>
            <DELETED>    (2) Nondelegation.--The President may not delegate
            the authority provided for in this subsection.</DELETED>
    <DELETED>    (b) Presidential Action in Case of Set-Aside.--</DELETED>
            <DELETED>    (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
            report the determination, along with the specific reasons why
            the determination was made, 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.</DELETED>
            <DELETED>    (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.</DELETED>

    <DELETED>SEC. 214. OFFICE OF TECHNOLOGY EVALUATION.</DELETED>

    <DELETED>    (a) In General.--</DELETED>
            <DELETED>    (1) Establishment of office.--The Secretary shall
            establish in the Department of Commerce an Office of Technology
            Evaluation (in this subtitle 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.</DELETED>
            <DELETED>    (2) Staff.--The Secretary shall ensure that the
            Office include persons with the training, expertise and
            experience in economic analysis, the defense industrial base,
            technological developments, national security, and foreign
            policy export controls to carry out the responsibilities set
            forth in subsection (b) of this section. 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.</DELETED>
    <DELETED>    (b) Responsibilities.--The Office shall be responsible
    for--</DELETED>
            <DELETED>    (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;</DELETED>
            <DELETED>    (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;</DELETED>
            <DELETED>    (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;</DELETED>
            <DELETED>    (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;</DELETED>
            <DELETED>    (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</DELETED>
            <DELETED>    (6) conducting assessments of the impact of United
            States export control policies on--</DELETED>
                    <DELETED>    (A) United States industrial sectors
                    critical to the national security interests of the
                    United States; and</DELETED>
                    <DELETED>    (B) the United States economy in
                    general.</DELETED>
    <DELETED>    (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 801 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.</DELETED>
    <DELETED>    (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.</DELETED>

          <DELETED>TITLE III--FOREIGN POLICY EXPORT CONTROLS</DELETED>

    <DELETED>SEC. 301. AUTHORITY FOR FOREIGN POLICY EXPORT
                  CONTROLS.</DELETED>

    <DELETED>    (a) Authority.--</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (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.</DELETED>
    <DELETED>    (b) Purposes.--The purposes of foreign policy export
    controls are the following:</DELETED>
            <DELETED>    (1) To promote the foreign policy objectives of
            the United States, consistent with the purposes of this section
            and the provisions of this Act.</DELETED>
            <DELETED>    (2) To promote international peace, stability, and
            respect for fundamental human rights.</DELETED>
            <DELETED>    (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.</DELETED>
    <DELETED>    (c) Exception.--The President may not control under this
    title the export from a foreign country (whether or not by a United
    States person) of any item produced or originating in a foreign country
    that contains parts or components produced or originating in the United
    States.</DELETED>
    <DELETED>    (d) Contract Sanctity.--</DELETED>
            <DELETED>    (1) In general.--The President may not prohibit
            the export of any item under this title if that item is to be
            exported--</DELETED>
                    <DELETED>    (A) in performance of a binding contract,
                    agreement, or other contractual commitment entered into
                    before the date on which the President reports to
                    Congress the President's intention to impose controls
                    on that item under this title; or</DELETED>
                    <DELETED>    (B) under a license or other authorization
                    issued under this Act before the earlier of the date on
                    which the control is initially imposed or the date on
                    which the President reports to Congress the President's
                    intention to impose controls under this
                    title.</DELETED>
            <DELETED>    (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--
            </DELETED>
                    <DELETED>    (A) there is a serious threat to a foreign
                    policy interest of the United States;</DELETED>
                    <DELETED>    (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</DELETED>
                    <DELETED>    (C) the export controls will be in effect
                    only as long as the serious threat exists.</DELETED>

    <DELETED>SEC. 302. PROCEDURES FOR IMPOSING CONTROLS.</DELETED>

    <DELETED>    (a) Notice.--</DELETED>
            <DELETED>    (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--</DELETED>
                    <DELETED>    (A) a notice of intent to do so;
                    and</DELETED>
                    <DELETED>    (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.</DELETED>
            <DELETED>    (2) Purposes of notice.--The purposes of the
            notice are--</DELETED>
                    <DELETED>    (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</DELETED>
                    <DELETED>    (B) to provide an opportunity for
                    negotiations to achieve the purposes set forth in
                    section 301(b).</DELETED>
    <DELETED>    (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.</DELETED>
    <DELETED>    (c) Consultation.--</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (2) Classified consultation.--The consultations
            described in paragraph (1) may be conducted on a classified
            basis if the Secretary considers it necessary.</DELETED>

    <DELETED>SEC. 303. CRITERIA FOR FOREIGN POLICY EXPORT
                  CONTROLS.</DELETED>

    <DELETED>    Each export control imposed by the President under this
    title shall--</DELETED>
            <DELETED>    (1) have clearly stated and specific United States
            foreign policy objectives;</DELETED>
            <DELETED>    (2) have objective standards for evaluating the
            success or failure of the export control;</DELETED>
            <DELETED>    (3) include an assessment by the President that--
            </DELETED>
                    <DELETED>    (A) the export control is likely to
                    achieve such objectives and the expected time for
                    achieving the objectives; and</DELETED>
                    <DELETED>    (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;</DELETED>
            <DELETED>    (4) be targeted narrowly; and</DELETED>
            <DELETED>    (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.</DELETED>

    <DELETED>SEC. 304. PRESIDENTIAL REPORT BEFORE IMPOSITION OF
                  CONTROL.</DELETED>

    <DELETED>    (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.</DELETED>
    <DELETED>    (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--
    </DELETED>
            <DELETED>    (1) any diplomatic and other steps that the United
            States has taken to accomplish the intended objective of the
            proposed export control;</DELETED>
            <DELETED>    (2) unilateral export controls imposed, and other
            measures taken, by other countries to achieve the intended
            objective of the proposed export control;</DELETED>
            <DELETED>    (3) the likelihood of multilateral adoption of
            comparable export controls;</DELETED>
            <DELETED>    (4) alternative measures to promote the same
            objectives and the likelihood of their potential
            success;</DELETED>
            <DELETED>    (5) any United States obligations under
            international trade agreements, treaties, or other
            international arrangements, with which the proposed export
            control may conflict;</DELETED>
            <DELETED>    (6) the likelihood that the proposed export
            control could lead to retaliation against United States
            interests;</DELETED>
            <DELETED>    (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</DELETED>
            <DELETED>    (8) a conclusion that the probable achievement of
            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.</DELETED>

    <DELETED>SEC. 305. IMPOSITION OF CONTROLS.</DELETED>

    <DELETED>    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 .</DELETED>

    <DELETED>SEC. 306. DEFERRAL AUTHORITY.</DELETED>

    <DELETED>    (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--</DELETED>
            <DELETED>    (1) the President determines that a deferral of
            compliance with the requirement is in the national interest of
            the United States; and</DELETED>
            <DELETED>    (2) the requirement is satisfied not later than 60
            days after the date on which the export control is imposed
            under this title.</DELETED>
    <DELETED>    (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 the 60-
    day period.</DELETED>

    <DELETED>SEC. 307. REVIEW, RENEWAL, AND TERMINATION.</DELETED>

    <DELETED>    (a) Renewal and Termination.--</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (2) Exception.--This section shall not apply to an
            export control imposed under this title that--</DELETED>
                    <DELETED>    (A) is required by law;</DELETED>
                    <DELETED>    (B) is targeted against any country
                    designated as a country supporting international
                    terrorism pursuant to section 310; or</DELETED>
                    <DELETED>    (C) has been in effect for less than 1
                    year as of February 1 of a renewal year.</DELETED>
    <DELETED>    (b) Review.--</DELETED>
            <DELETED>    (1) In general.--Not later than February 1 of each
            renewal year, the President shall review all export controls in
            effect under this title.</DELETED>
            <DELETED>    (2) Consultation.--</DELETED>
                    <DELETED>    (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.</DELETED>
                    <DELETED>    (B) Classified consultation.--The
                    consultations may be conducted on a classified basis if
                    the Secretary considers it necessary.</DELETED>
            <DELETED>    (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.</DELETED>
    <DELETED>    (c) Report to Congress.--</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (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:</DELETED>
                    <DELETED>    (A) A clearly stated explanation of the
                    specific United States foreign policy objective that
                    the existing export control was intended to
                    achieve.</DELETED>
                    <DELETED>    (B) An assessment of--</DELETED>
                            <DELETED>    (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</DELETED>
                            <DELETED>    (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.</DELETED>
                    <DELETED>    (C) An updated description and assessment
                    of--</DELETED>
                            <DELETED>    (i) each of the criteria described
                            in section 303, and</DELETED>
                            <DELETED>    (ii) each matter required to be
                            reported under section 304(b) (1) through
                            (8).</DELETED>
            <DELETED>    (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.</DELETED>

    <DELETED>SEC. 308. TERMINATION OF CONTROLS UNDER THIS TITLE.</DELETED>

    <DELETED>    (a) In General.--Notwithstanding any other provision of
    law, the President--</DELETED>
            <DELETED>    (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</DELETED>
            <DELETED>    (2) may terminate any export control imposed under
            this title that is not required by law at any time.</DELETED>
    <DELETED>    (b) Exception.--Paragraphs (1) and (2) of subsection (a)
    do not apply to any export control imposed under this title that is
    targeted against any country designated as a country supporting
    international terrorism pursuant to section 310.</DELETED>
    <DELETED>    (c) Effective Date of Termination.--The termination of an
    export control pursuant to this section shall take effect on the date
    notice of the termination is published in the Federal
    Register.</DELETED>

    <DELETED>SEC. 309. COMPLIANCE WITH INTERNATIONAL OBLIGATIONS.</DELETED>

    <DELETED>    Notwithstanding any other provision of this Act setting
    forth limitations on authority to control exports and except as
    provided in section 304, the President may impose controls on exports
    to a particular country or countries 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.</DELETED>

    <DELETED>SEC. 310. DESIGNATION OF COUNTRIES SUPPORTING INTERNATIONAL
                  TERRORISM.</DELETED>

    <DELETED>    (a) License Required.--A license shall be required for the
    export of an item to a country if the Secretary of State has determined
    that--</DELETED>
            <DELETED>    (1) the government of such country has repeatedly
            provided support for acts of international terrorism;
            and</DELETED>
            <DELETED>    (2) 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.</DELETED>
    <DELETED>    (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).</DELETED>
    <DELETED>    (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.</DELETED>
    <DELETED>    (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--</DELETED>
            <DELETED>    (1) before the proposed rescission would take
            effect, a report certifying that--</DELETED>
                    <DELETED>    (A) there has been a fundamental change in
                    the leadership and policies of the government of the
                    country concerned;</DELETED>
                    <DELETED>    (B) that government is not supporting acts
                    of international terrorism; and</DELETED>
                    <DELETED>    (C) that government has provided
                    assurances that it will not support acts of
                    international terrorism in the future; or</DELETED>
            <DELETED>    (2) at least 45 days before the proposed
            rescission would take effect, a report justifying the
            rescission and certifying that--</DELETED>
                    <DELETED>    (A) the government concerned has not
                    provided any support for international terrorism during
                    the preceding 6-month period; and</DELETED>
                    <DELETED>    (B) the government concerned has provided
                    assurances that it will not support acts of
                    international terrorism in the future.</DELETED>
    <DELETED>    (e) Information To Be Included in Notification.--The
    Secretary and the Secretary of State shall include in the notification
    required by subsection (b)--</DELETED>
            <DELETED>    (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;</DELETED>
            <DELETED>    (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;</DELETED>
            <DELETED>    (3) the reasons why the proposed export or
            transfer is in the national interest of the United
            States;</DELETED>
            <DELETED>    (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;</DELETED>
            <DELETED>    (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</DELETED>
            <DELETED>    (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.</DELETED>

     <DELETED>TITLE IV--EXEMPTION FOR AGRICULTURAL COMMODITIES, MEDICINE,
                         AND MEDICAL SUPPLIES</DELETED>

    <DELETED>SEC. 401. EXEMPTION FOR AGRICULTURAL COMMODITIES, MEDICINE,
                  AND MEDICAL SUPPLIES.</DELETED>

    <DELETED>    Notwithstanding any other provision of law, the export
    controls imposed on items under title III shall not apply to
    agricultural commodities, medicine, and medical supplies.</DELETED>

    <DELETED>SEC. 402. TERMINATION OF EXPORT CONTROLS REQUIRED BY
                  LAW.</DELETED>

    <DELETED>    Notwithstanding any other provision of law, the President
    shall terminate any export control mandated by law on agricultural
    commodities, medicine, and medical supplies upon the date of enactment
    of this Act except for a control that is specifically reimposed by
    law.</DELETED>

    <DELETED>SEC. 403. EXCLUSIONS.</DELETED>

    <DELETED>    Sections 401 and 402 do not apply to the
    following:</DELETED>
            <DELETED>    (1) The export of agricultural commodities,
            medicine, and medical supplies that are subject to national
            security export controls under title II or are listed on the
            United States Munitions List established under section 38 of
            the Arms Export Control Act (22 U.S.C. 2778).</DELETED>
            <DELETED>    (2) The export of agricultural commodities,
            medicine, and medical supplies to a country against which an
            embargo is in effect under the Trading With the Enemy
            Act.</DELETED>

       <DELETED>TITLE V--PROCEDURES FOR EXPORT LICENSES AND INTERAGENCY
                          DISPUTE RESOLUTION</DELETED>

    <DELETED>SEC. 501. EXPORT LICENSE PROCEDURES.</DELETED>

    <DELETED>    (a) Responsibility of the Secretary.--</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (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:</DELETED>
                    <DELETED>    (A) The characteristics of the controlled
                    item.</DELETED>
                    <DELETED>    (B) The threat to--</DELETED>
                            <DELETED>    (i) the national security
                            interests of the United States from items
                            controlled under title II of this Act;
                            or</DELETED>
                            <DELETED>    (ii) the foreign policy of the
                            United States from items controlled under title
                            III of this Act.</DELETED>
                    <DELETED>    (C) The country tier designation of the
                    country to which a controlled item is to be exported
                    pursuant to section 203.</DELETED>
                    <DELETED>    (D) The risk of export diversion or misuse
                    by--</DELETED>
                            <DELETED>    (i) the exporter;</DELETED>
                            <DELETED>    (ii) the method of
                            export;</DELETED>
                            <DELETED>    (iii) the end-user;</DELETED>
                            <DELETED>    (iv) the country where the end-
                            user is located; and</DELETED>
                            <DELETED>    (v) the end-use.</DELETED>
                    <DELETED>    (E) Risk mitigating factors including, but
                    not limited to--</DELETED>
                            <DELETED>    (i) changing the characteristics
                            of the controlled item;</DELETED>
                            <DELETED>    (ii) after-market monitoring by
                            the exporter; and</DELETED>
                            <DELETED>    (iii) post-shipment
                            verification.</DELETED>
    <DELETED>    (b) Initial Screening.--</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (2) Initial procedures.--</DELETED>
                    <DELETED>    (A) In general.--Not later than 9 days
                    after receiving any license application, the Secretary
                    shall--</DELETED>
                            <DELETED>    (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;</DELETED>
                            <DELETED>    (ii) 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;</DELETED>
                            <DELETED>    (iii) ensure that the
                            classification stated on the application for
                            the export items is correct; and</DELETED>
                            <DELETED>    (iv) return the application if a
                            license is not required.</DELETED>
                    <DELETED>    (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.</DELETED>
            <DELETED>    (3) Withdrawal of application.--An applicant may,
            by written notice to the Secretary, withdraw an application at
            any time before final action.</DELETED>
    <DELETED>    (c) Action by Other Departments and Agencies.--</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (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 in a prompt and responsible manner
            on an application. 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.</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (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.</DELETED>
    <DELETED>    (d) Action by the Secretary.--Not later than 30 days after
    the date the application is referred, the Secretary shall--</DELETED>
            <DELETED>    (1) if there is agreement among the referral
            departments and agencies to issue or deny the license--
            </DELETED>
                    <DELETED>    (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</DELETED>
                    <DELETED>    (B) notify the applicant of the intention
                    to deny the license; or</DELETED>
            <DELETED>    (2) if there is no agreement among the referral
            departments and agencies, notify the applicant that the
            application is subject to the interagency dispute resolution
            process provided for in section 502.</DELETED>
    <DELETED>    (e) Consequences of Application Denial.--</DELETED>
            <DELETED>    (1) In general.--If a determination is made to
            deny a license, the applicant shall be informed in writing by
            the Secretary of--</DELETED>
                    <DELETED>    (A) the determination;</DELETED>
                    <DELETED>    (B) the specific statutory and regulatory
                    bases for the proposed denial;</DELETED>
                    <DELETED>    (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;</DELETED>
                    <DELETED>    (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</DELETED>
                    <DELETED>    (E) the availability of appeal
                    procedures.</DELETED>
            <DELETED>    (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 receive consideration in a timely
            manner.</DELETED>
    <DELETED>    (f) Appeals and Other Actions by Applicant.--</DELETED>
            <DELETED>    (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 502(b)(3).</DELETED>
            <DELETED>    (2) Enforcement of time limits.--</DELETED>
                    <DELETED>    (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.</DELETED>
                    <DELETED>    (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.</DELETED>
    <DELETED>    (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:</DELETED>
            <DELETED>    (1) Agreement of the applicant.--Delays upon which
            the Secretary and the applicant mutually agree.</DELETED>
            <DELETED>    (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--</DELETED>
                    <DELETED>    (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;</DELETED>
                    <DELETED>    (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</DELETED>
                    <DELETED>    (C) the analysis of the result of the
                    prelicense check is completed by the Secretary within 5
                    days.</DELETED>
            <DELETED>    (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--</DELETED>
                    <DELETED>    (A) the request for such assurances is
                    sent to the Secretary of State within 5 days after the
                    determination that the assurances are
                    required;</DELETED>
                    <DELETED>    (B) the Secretary of State initiates the
                    request of the relevant government within 10 days
                    thereafter; and</DELETED>
                    <DELETED>    (C) the license is issued within 5 days
                    after the Secretary receives the requested
                    assurances.</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (5) Multilateral review.--Multilateral review of a
            license application to the extent that such multilateral review
            is required by a relevant multilateral regime.</DELETED>
            <DELETED>    (6) Congressional notification.--Such time as is
            required for mandatory congressional notifications under this
            Act.</DELETED>
            <DELETED>    (7) Consultations.--Consultation with foreign
            governments, if such consultation is provided for by a relevant
            multilateral regime as a precondition for approving a
            license.</DELETED>
    <DELETED>    (h) Classification Requests and Other Inquiries.--
    </DELETED>
            <DELETED>    (1) Classification requests.--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 and
    other departments and agencies the Secretary considers appropriate. The
    Secretary shall, within 14 days after receiving the request, inform the
    person making the request of the proper classification.</DELETED>
            <DELETED>    (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.</DELETED>

    <DELETED>SEC. 502. INTERAGENCY DISPUTE RESOLUTION PROCESS.</DELETED>

    <DELETED>    (a) In General.--All license applications on which
    agreement cannot be reached shall be referred to the interagency
    dispute resolution process for decision.</DELETED>
    <DELETED>    (b) Interagency Dispute Resolution Process.--</DELETED>
            <DELETED>    (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 chairperson 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>    (2) Intelligence community.--The analytic product
            of the intelligence community should be fully considered with
            respect to any proposed license under this title.</DELETED>
            <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--</DELETED>
                    <DELETED>    (A) provide for decision-making based on
                    the majority vote of the participating departments and
                    agencies;</DELETED>
                    <DELETED>    (B) provide that a department or agency
                    that fails to take a timely position, citing the
                    specific statutory and regulatory bases for a denial,
                    shall be deemed to have no objection to the pending
                    decision;</DELETED>
                    <DELETED>    (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 any
                    representative of a department or agency that
                    participated in the interagency committee or dispute
                    resolution process that made the decision;
                    and</DELETED>
                    <DELETED>    (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.</DELETED>
    <DELETED>    (c) Final Action.--</DELETED>
            <DELETED>    (1) In general.--Once a final decision is made
            under subsection (b), the Secretary shall promptly--</DELETED>
                    <DELETED>    (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</DELETED>
                    <DELETED>    (B) notify the applicant of the intention
                    to deny the application.</DELETED>
            <DELETED>    (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.</DELETED>

       <DELETED>TITLE VI--INTERNATIONAL ARRANGEMENTS; FOREIGN BOYCOTTS;
                      SANCTIONS; AND ENFORCEMENT</DELETED>

    <DELETED>SEC. 601. INTERNATIONAL ARRANGEMENTS.</DELETED>

    <DELETED>    (a) Multilateral Export Control Regimes.--</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (2) Participation in existing regimes.--Congress
            encourages the United States to continue its active
            participation in and to strengthen existing multilateral export
            control regimes.</DELETED>
            <DELETED>    (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.</DELETED>
    <DELETED>    (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 Secretary considers necessary.</DELETED>
    <DELETED>    (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:</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (2) Effective enforcement and compliance.--The
            regime promotes enforcement and compliance with the regime's
            rules and guidelines.</DELETED>
            <DELETED>    (3) Public understanding.--The regime makes an
            effort to enhance public understanding of the purpose and
    procedures of the multilateral export control regime.</DELETED>
            <DELETED>    (4) Effective implementation procedures.--The
            multilateral export control regime has procedures for the
            implementation of its rules and guidelines through uniform and
            consistent interpretations of its export controls.</DELETED>
            <DELETED>    (5) Enhanced cooperation with regime nonmembers.--
            There is agreement among the members of the multilateral export
            control regime to--</DELETED>
                    <DELETED>    (A) cooperate with governments outside the
                    regime to restrict the export of items controlled by
                    such regime; and</DELETED>
                    <DELETED>    (B) establish an ongoing mechanism in the
                    regime to coordinate planning and implementation of
                    export control measures related to such
                    cooperation.</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (7) Common list of controlled items.--There is
            agreement on a common list of items controlled by the
            multilateral export control regime.</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (10) Harmonization of license approval
            procedures.--There is harmonization among the members of the
            regime of their national export license approval procedures and
            practices.</DELETED>
            <DELETED>    (11) Undercutting.--There is a limit with respect
            to when members of a multilateral export control regime--
            </DELETED>
                    <DELETED>    (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</DELETED>
                    <DELETED>    (B) approve exports to a particular end
                    user to which the United States has denied export
                    license for a similar item.</DELETED>
    <DELETED>    (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:</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (3) Enforcement.--The enforcement mechanism
            provides authority for trained enforcement officers to
            investigate and prevent illegal exports.</DELETED>
            <DELETED>    (4) Documentation.--There is a system of export
            control documentation and verification with respect to
            controlled items.</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (6) Resources.--The member has devoted adequate
            resources to administer effectively the authorities, systems,
            mechanisms, and procedures described in paragraphs (1) through
            (5).</DELETED>
    <DELETED>    (e) Objectives Regarding Multilateral Export Control
    Regimes.--The President shall seek to achieve the following objectives
    with regard to multilateral export control regimes:</DELETED>
            <DELETED>    (1) Strengthen existing regimes.--Strengthen
            existing multilateral export control regimes--</DELETED>
                    <DELETED>    (A) by creating a requirement to share
                    information about export license applications among
                    members before a member approves an export license;
                    and</DELETED>
                    <DELETED>    (B) harmonizing national export license
                    approval procedures and practices, including the
                    elimination of undercutting.</DELETED>
            <DELETED>    (2) Review and update.--Review and update
            multilateral regime export control lists with other members,
            taking into account--</DELETED>
                    <DELETED>    (A) national security concerns;</DELETED>
                    <DELETED>    (B) the controllability of items;
                    and</DELETED>
                    <DELETED>    (C) the costs and benefits of
                    controls.</DELETED>
            <DELETED>    (3) Encourage compliance by nonmembers.--Encourage
            nonmembers of the multilateral export control regime--
            </DELETED>
                    <DELETED>    (A) to strengthen their national export
                    control regimes and improve enforcement;</DELETED>
                    <DELETED>    (B) to adhere to the appropriate
                    multilateral export control regime; and</DELETED>
                    <DELETED>    (C) not to undermine an existing
                    multilateral export control regime by exporting
                    controlled items in a manner inconsistent with the
                    guidelines of the regime.</DELETED>
    <DELETED>    (f) Transparency of Multilateral Export Control Regimes.--
    </DELETED>
            <DELETED>    (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 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:</DELETED>
                    <DELETED>    (A) The purposes of the regime.</DELETED>
                    <DELETED>    (B) The members of the regime.</DELETED>
                    <DELETED>    (C) The export licensing policy of the
                    regime.</DELETED>
                    <DELETED>    (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.</DELETED>
                    <DELETED>    (E) Any countries, end uses, or end users
                    that are subject to the export controls of the
                    regime.</DELETED>
                    <DELETED>    (F) Rules of interpretation.</DELETED>
                    <DELETED>    (G) Major policy actions.</DELETED>
                    <DELETED>    (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.</DELETED>
            <DELETED>    (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 not
            inconsistent with arrangements under the regime 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.</DELETED>
            <DELETED>    (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.</DELETED>
    <DELETED>    (g) Support of Other Countries' Export Control Systems.--
    The Secretary is encouraged to continue to--</DELETED>
            <DELETED>    (1) participate in training of, and provide
            training to, officials of other countries on the principles and
            procedures for implementing effective export controls;
            and</DELETED>
            <DELETED>    (2) participate in any such training provided by
            other departments and agencies of the United States.</DELETED>

    <DELETED>SEC. 602. FOREIGN BOYCOTTS.</DELETED>

    <DELETED>    (a) Purposes.--The purposes of this section are as
    follows:</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (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.</DELETED>
    <DELETED>    (b) Prohibitions and Exceptions.--</DELETED>
            <DELETED>    (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:</DELETED>
                    <DELETED>    (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).</DELETED>
                    <DELETED>    (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.</DELETED>
                    <DELETED>    (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.</DELETED>
                    <DELETED>    (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.</DELETED>
                    <DELETED>    (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.</DELETED>
                    <DELETED>    (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.</DELETED>
            <DELETED>    (2) Exceptions.--Regulations issued pursuant to
            paragraph (1) shall provide exceptions for--</DELETED>
                    <DELETED>    (A) compliance, or agreement to comply,
                    with requirements--</DELETED>
                            <DELETED>    (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</DELETED>
                            <DELETED>    (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;</DELETED>
                    <DELETED>    (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;</DELETED>
                    <DELETED>    (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;</DELETED>
                    <DELETED>    (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;</DELETED>
                    <DELETED>    (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</DELETED>
                    <DELETED>    (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.</DELETED>
            <DELETED>    (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).</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (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.</DELETED>
    <DELETED>    (c) Additional Regulations and Reports.--</DELETED>
            <DELETED>    (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).</DELETED>
            <DELETED>    (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).</DELETED>
    <DELETED>    (d) Preemption.--The provisions of this section and the
    regulations issued under this section shall preempt any law, rule, or
    regulation that--</DELETED>
            <DELETED>    (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</DELETED>
            <DELETED>    (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.</DELETED>

    <DELETED>SEC. 603. PENALTIES.</DELETED>

    <DELETED>    (a) Criminal Penalties.--</DELETED>
            <DELETED>    (1) Violations by an individual.--Any individual
            who knowingly 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, except that the term of imprisonment may be
            increased to life for multiple violations or aggravated
            circumstances.</DELETED>
            <DELETED>    (2) Violations by a person other than an
            individual.--Any person other than an individual who knowingly
            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 $10,000,000, whichever is greater,
            for each violation.</DELETED>
    <DELETED>    (b) Forfeiture of Property Interest and Proceeds.--
    </DELETED>
            <DELETED>    (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--</DELETED>
                    <DELETED>    (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;</DELETED>
                    <DELETED>    (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</DELETED>
                    <DELETED>    (C) any of that person's property
                    constituting, or derived from, any proceeds obtained
                    directly or indirectly as a result of the
                    violation.</DELETED>
            <DELETED>    (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, to the same extent as
            property subject to forfeiture under that chapter.</DELETED>
    <DELETED>    (c) Civil Penalties; Administrative Sanctions.--</DELETED>
            <DELETED>    (1) Civil penalties.--The Secretary may impose a
            civil penalty of up to $1,000,000 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.</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (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.</DELETED>
    <DELETED>    (d) Payment of Civil Penalties.--</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (2) Deferral or suspension.--</DELETED>
                    <DELETED>    (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.</DELETED>
                    <DELETED>    (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.</DELETED>
            <DELETED>    (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
            except as set forth in section 607(h).</DELETED>
    <DELETED>    (e) Refunds.--</DELETED>
            <DELETED>    (1) Authority.--</DELETED>
                    <DELETED>    (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.</DELETED>
                    <DELETED>    (B) Limitation.--A civil penalty may not
                    be refunded under subparagraph (A) later than 2 years
                    after payment of the penalty.</DELETED>
            <DELETED>    (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.</DELETED>
    <DELETED>    (f) Effect of Other Convictions.--</DELETED>
            <DELETED>    (1) Denial of export privileges.--Any person
            convicted of a violation of--</DELETED>
                    <DELETED>    (A) a provision of this Act or the Export
                    Administration Act of 1979,</DELETED>
                    <DELETED>    (B) a provision of the International
                    Emergency Economic Powers Act (50 U.S.C. 1701 et
                    seq.),</DELETED>
                    <DELETED>    (C) section 793, 794, or 798 of title 18,
                    United States Code,</DELETED>
                    <DELETED>    (D) section 4(b) of the Internal Security
                    Act of 1950 (50 U.S.C. 783(b)),</DELETED>
                    <DELETED>    (E) section 38 of the Arms Export Control
                    Act (22 U.S.C. 2778),</DELETED>
                    <DELETED>    (F) section 16 of the Trading with the
                    Enemy Act (50 U.S.C. App. 16),</DELETED>
                    <DELETED>    (G) any regulation, license, or order
                    issued under any provision of law listed in
                    subparagraph (A), (B), (C), (D), (E), or (F),</DELETED>
                    <DELETED>    (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,</DELETED>
                    <DELETED>    (I) section 175 of title 18, United States
                    Code,</DELETED>
                    <DELETED>    (J) a provision of the Atomic Energy Act
                    (42 U.S.C. 201 et seq.),</DELETED>
                    <DELETED>    (K) section 831 of title 18, United States
                    Code, or</DELETED>
                    <DELETED>    (L) section 2332a of title 18, United
                    States Code,</DELETED>
            <DELETED>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.</DELETED>
            <DELETED>    (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.</DELETED>
    <DELETED>    (g) Statute of Limitations.--</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (2) Exception.--</DELETED>
                    <DELETED>    (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.</DELETED>
                    <DELETED>    (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.</DELETED>
    <DELETED>    (h) Violations Defined by Regulation.--Nothing in this
    section shall limit the authority of the Secretary to define by
    regulation violations under this Act.</DELETED>
    <DELETED>    (i) Construction.--Nothing in subsection (c), (d), (e),
    (f), or (g) limits--</DELETED>
            <DELETED>    (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;</DELETED>
            <DELETED>    (2) the authority to compromise and settle
            administrative proceedings brought with respect to any such
            violation; or</DELETED>
            <DELETED>    (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)).</DELETED>

    <DELETED>SEC. 604. MULTILATERAL EXPORT CONTROL REGIME VIOLATION
                  SANCTIONS.</DELETED>

    <DELETED>    (a) Imposition of Sanctions.--</DELETED>
            <DELETED>    (1) In general.--The President, subject to
            subsection (c), shall apply sanctions under subsection (b) for
            a period of not less than 2 years and not more than 5 years, if
            the President determines that--</DELETED>
                    <DELETED>    (A) a foreign person has violated any
                    regulation issued by a country to control exports for
                    national security purposes pursuant to a multilateral
                    export control regime; and</DELETED>
                    <DELETED>    (B) such violation has substantially aided
                    a country in--</DELETED>
                            <DELETED>    (i) acquiring military significant
                            capabilities or weapons, if the country is an
                            actual or potential adversary of the United
                            States;</DELETED>
                            <DELETED>    (ii) acquiring nuclear weapons
                            provided such country is other than the
                            declared nuclear states of the People's
                            Republic of China, the Republic of France, the
                            Russian Federation, the United Kingdom, and the
                            United States;</DELETED>
                            <DELETED>    (iii) acquiring biological or
                            chemical weapons; or</DELETED>
                            <DELETED>    (iv) acquiring missiles.</DELETED>
            <DELETED>    (2) Notification of congress.--The President shall
            notify Congress of each action taken under this
            section.</DELETED>
    <DELETED>    (b) Applicability and Forms of Sanctions.--The sanctions
    referred to in subsection (a) shall apply to the foreign person
    committing the violation, as well as to any parent, affiliate,
    subsidiary, and successor entity of the foreign person, and, except as
    provided in subsection (c), are as follows:</DELETED>
            <DELETED>    (1) A prohibition on contracting with, and the
            procurement of products and services from, a sanctioned person,
            by any department, agency, or instrumentality of the United
            States Government.</DELETED>
            <DELETED>    (2) A prohibition on the importation into the
            United States of all items produced by a sanctioned
            person.</DELETED>
    <DELETED>    (c) Exceptions.--The President shall not apply sanctions
    under this section--</DELETED>
            <DELETED>    (1) in the case of procurement of defense items--
            </DELETED>
                    <DELETED>    (A) under existing contracts or
                    subcontracts, including the exercise of options for
                    production quantities to satisfy United States
                    operational military requirements;</DELETED>
                    <DELETED>    (B) if the President determines that the
                    foreign person or other entity to which the sanctions
                    would otherwise be applied is a sole source supplier of
                    essential defense items and no alternative supplier can
                    be identified; or</DELETED>
                    <DELETED>    (C) if the President determines that such
                    items are essential to the national security under
                    defense coproduction agreements;</DELETED>
            <DELETED>    (2) in any case in which such sanctions would
            violate United States international obligations including
            treaties, agreements, or understandings; or</DELETED>
            <DELETED>    (3) to--</DELETED>
                    <DELETED>    (A) items provided under contracts or
                    other binding agreements (as such terms are defined by
                    the President in regulations) entered into before the
                    date on which the President notifies Congress of the
                    intention to impose the sanctions;</DELETED>
                    <DELETED>    (B) after-market service and replacement
                    parts including upgrades;</DELETED>
                    <DELETED>    (C) component parts, but not finished
                    products, essential to United States products or
                    productions; or</DELETED>
                    <DELETED>    (D) information and technology.</DELETED>
    <DELETED>    (d) Exclusion.--The President shall not apply sanctions
    under this section to a parent, affiliate, subsidiary, and successor
    entity of a foreign person if the President determines that--</DELETED>
            <DELETED>    (1) the parent, affiliate, subsidiary, or
            successor entity (as the case may be) has not knowingly
            violated the export control regulation violated by the foreign
            person; and</DELETED>
            <DELETED>    (2) the government of the country with
            jurisdiction over the parent, affiliate, subsidiary, or
            successor entity had in effect, at the time of the violation by
            the foreign person, an effective export control system
            consistent with principles set forth in section
            601(b)(2).</DELETED>
    <DELETED>    (e) Subsequent Modifications of Sanctions.--The President
    may, after consultation with the Committee on Banking, Housing, and
    Urban Affairs of the Senate and the Committee on International
    Relations of the House of Representatives, limit the scope of sanctions
    applied to a parent, affiliate, subsidiary, or successor entity of the
    foreign person determined to have committed the violation on account of
    which the sanctions were imposed, if the President determines that--
    </DELETED>
            <DELETED>    (1) the parent, affiliate, subsidiary, or
            successor entity (as the case may be) has not, on the basis of
            evidence available to the United States, itself violated the
            export control regulation involved, either directly or through
            a course of conduct;</DELETED>
            <DELETED>    (2) the government with jurisdiction over the
            parent, affiliate, subsidiary, or successor entity has improved
            its export control system as measured by the criteria set forth
            in section 601(b)(2); and</DELETED>
            <DELETED>    (3) the parent, affiliate, subsidiary, or
            successor entity, has instituted improvements in internal
            controls sufficient to detect and prevent violations of the
            multilateral export control regime.</DELETED>

    <DELETED>SEC. 605. MISSILE PROLIFERATION CONTROL VIOLATIONS.</DELETED>

    <DELETED>    (a) Violations by United States Persons.--</DELETED>
            <DELETED>    (1) Sanctions.--</DELETED>
                    <DELETED>    (A) In general.--If the President
                    determines that a United States person knowingly--
                    </DELETED>
                            <DELETED>    (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,</DELETED>
                            <DELETED>    (ii) conspires to or attempts to
                            engage in such export, transfer, or trade,
                            or</DELETED>
                            <DELETED>    (iii) facilitates such export,
                            transfer, or trade by any other
                            person,</DELETED>
                    <DELETED>then the President shall impose the applicable
                    sanctions described in subparagraph (B).</DELETED>
                    <DELETED>    (B) Sanctions described.--The sanctions
                    which apply to a United States person under
                    subparagraph (A) are the following:</DELETED>
                            <DELETED>    (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.</DELETED>
                            <DELETED>    (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.</DELETED>
            <DELETED>    (2) Discretionary sanctions.--In the case of any
            determination referred to in paragraph (1), the Secretary may
            pursue any other appropriate penalties under section
            603.</DELETED>
            <DELETED>    (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--</DELETED>
                    <DELETED>    (A) the item is essential to the national
                    security of the United States; and</DELETED>
                    <DELETED>    (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.</DELETED>
    <DELETED>    (b) Transfers of Missile Equipment or Technology by
    Foreign Persons.--</DELETED>
            <DELETED>    (1) Sanctions.--</DELETED>
                    <DELETED>    (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--</DELETED>
                            <DELETED>    (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,</DELETED>
                            <DELETED>    (ii) conspires to or attempts to
                            engage in such export, transfer, or trade,
                            or</DELETED>
                            <DELETED>    (iii) facilitates such export,
                            transfer, or trade by any other
                            person,</DELETED>
                    <DELETED>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).</DELETED>
                    <DELETED>    (B) Sanctions described.--The sanctions
                    which apply to a foreign person under subparagraph (A)
                    are the following:</DELETED>
                            <DELETED>    (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.</DELETED>
                            <DELETED>    (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.</DELETED>
                            <DELETED>    (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.</DELETED>
            <DELETED>    (2) Inapplicability with respect to mtcr
            adherents.--Paragraph (1) does not apply with respect to--
            </DELETED>
                    <DELETED>    (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</DELETED>
                    <DELETED>    (B) any export, transfer, or trade of an
                    item to an end user in a country that is an MTCR
                    adherent.</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (5) Waiver and report to congress.--</DELETED>
                    <DELETED>    (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.</DELETED>
                    <DELETED>    (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.</DELETED>
            <DELETED>    (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--</DELETED>
                    <DELETED>    (A) the product or service is essential to
                    the national security of the United States;
                    and</DELETED>
                    <DELETED>    (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.</DELETED>
            <DELETED>    (7) Exceptions.--The President shall not apply the
            sanction under this subsection prohibiting the importation of
            the products of a foreign person--</DELETED>
                    <DELETED>    (A) in the case of procurement of defense
                    articles or defense services--</DELETED>
                            <DELETED>    (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;</DELETED>
                            <DELETED>    (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</DELETED>
                            <DELETED>    (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;</DELETED>
                    <DELETED>    (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</DELETED>
                    <DELETED>    (C) to--</DELETED>
                            <DELETED>    (i) spare parts,</DELETED>
                            <DELETED>    (ii) component parts, but not
                            finished products, essential to United States
                            products or production,</DELETED>
                            <DELETED>    (iii) routine services and
                            maintenance of products, to the extent that
                            alternative sources are not readily or
                            reasonably available, or</DELETED>
                            <DELETED>    (iv) information and technology
                            essential to United States products or
                            production.</DELETED>
    <DELETED>    (c) Definitions.--In this section:</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (4) MTCR annex.--The term ``MTCR Annex'' means the
            Guidelines and Equipment and Technology Annex of the MTCR, and
            any amendments thereto.</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (6) Foreign person.--The term ``foreign person''
            means any person other than a United States person.</DELETED>
            <DELETED>    (7) Person.--</DELETED>
                    <DELETED>    (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.</DELETED>
                    <DELETED>    (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--</DELETED>
                            <DELETED>    (i) all activities of that
                            government relating to the development or
                            production of any missile equipment or
                            technology; and</DELETED>
                            <DELETED>    (ii) all activities of that
                            government affecting the development or
                            production of aircraft, electronics, and space
                            systems or equipment.</DELETED>
            <DELETED>    (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.</DELETED>

    <DELETED>SEC. 606. CHEMICAL AND BIOLOGICAL WEAPONS PROLIFERATION
                  SANCTIONS.</DELETED>

    <DELETED>    (a) Imposition of Sanctions.--</DELETED>
            <DELETED>    (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--</DELETED>
                    <DELETED>    (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</DELETED>
                    <DELETED>    (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,</DELETED>
            <DELETED>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.</DELETED>
            <DELETED>    (2) Countries, projects, or entities receiving
            assistance.--Paragraph (1) applies in the case of--</DELETED>
                    <DELETED>    (A) any foreign country that the President
                    determines has, at any time after the date of enactment
                    of this Act--</DELETED>
                            <DELETED>    (i) used chemical or biological
                            weapons in violation of international
                            law;</DELETED>
                            <DELETED>    (ii) used lethal chemical or
                            biological weapons against its own nationals;
                            or</DELETED>
                            <DELETED>    (iii) made substantial
                            preparations to engage in the activities
                            described in clause (i) or (ii);</DELETED>
                    <DELETED>    (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</DELETED>
                    <DELETED>    (C) any other foreign country, project, or
                    entity designated by the President for purposes of this
                    section.</DELETED>
            <DELETED>    (3) Persons against which sanctions are to be
            imposed.--Sanctions shall be imposed pursuant to paragraph (1)
            on--</DELETED>
                    <DELETED>    (A) the foreign person with respect to
                    which the President makes the determination described
                    in that paragraph;</DELETED>
                    <DELETED>    (B) any successor entity to that foreign
                    person;</DELETED>
                    <DELETED>    (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</DELETED>
                    <DELETED>    (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.</DELETED>
    <DELETED>    (b) Consultations With and Actions by Foreign Government
    of Jurisdiction.--</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (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.</DELETED>
    <DELETED>    (c) Sanctions.--</DELETED>
            <DELETED>    (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:</DELETED>
                    <DELETED>    (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).</DELETED>
                    <DELETED>    (B) Import sanctions.--The importation
                    into the United States of products produced by any
                    person described in subsection (a)(3) shall be
                    prohibited.</DELETED>
            <DELETED>    (2) Exceptions.--The President shall not be
            required to apply or maintain sanctions under this section--
            </DELETED>
                    <DELETED>    (A) in the case of procurement of defense
                    articles or defense services--</DELETED>
                            <DELETED>    (i) under existing contracts or
                            subcontracts, including the exercise of
    options for production quantities to satisfy United States operational
    military requirements;</DELETED>
                            <DELETED>    (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</DELETED>
                            <DELETED>    (iii) if the President determines
                            that such articles or services are essential to
                            the national security under defense
                            coproduction agreements;</DELETED>
                    <DELETED>    (B) to products or services provided under
                    contracts entered into before the date on which the
                    President publishes his intention to impose
                    sanctions;</DELETED>
                    <DELETED>    (C) to--</DELETED>
                            <DELETED>    (i) spare parts,</DELETED>
                            <DELETED>    (ii) component parts, but not
                            finished products, essential to United States
                            products or production, or</DELETED>
                            <DELETED>    (iii) routine servicing and
                            maintenance of products, to the extent that
                            alternative sources are not readily or
                            reasonably available;</DELETED>
                    <DELETED>    (D) to information and technology
                    essential to United States products or production;
                    or</DELETED>
                    <DELETED>    (E) to medical or other humanitarian
                    items.</DELETED>
    <DELETED>    (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.</DELETED>
    <DELETED>    (e) Waiver.--</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (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.</DELETED>
    <DELETED>    (f) Definition of Foreign Person.--For the purposes of
    this section, the term ``foreign person'' means--</DELETED>
            <DELETED>    (1) an individual who is not a citizen of the
            United States or an alien admitted for permanent residence to
            the United States; or</DELETED>
            <DELETED>    (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.</DELETED>

    <DELETED>SEC. 607. ENFORCEMENT.</DELETED>

    <DELETED>    (a) General Authority and Designation.--</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (2) General authorities.--</DELETED>
                    <DELETED>    (A) Exercise of authority.--To the extent
                    necessary or appropriate to the enforcement of this
                    Act, officers or 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).</DELETED>
                    <DELETED>    (B) Customs service.--In carrying out
                    enforcement authority under paragraph (3), the
                    Commissioner of Customs and employees of the United
                    States Customs Services 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 commodities or technology 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.</DELETED>
                    <DELETED>    (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 602. 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.</DELETED>
                    <DELETED>    (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.</DELETED>
            <DELETED>    (3) Specific authorities.--</DELETED>
                    <DELETED>    (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:</DELETED>
                            <DELETED>    (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.</DELETED>
                            <DELETED>    (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.</DELETED>
                    <DELETED>    (B) Actions by office of export
                    enforcement and customs service personnel.--</DELETED>
                            <DELETED>    (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:</DELETED>
                                    <DELETED>    (I) Execute any warrant or
                                    other process issued by a court or
                                    officer of competent jurisdiction with
                                    respect to the enforcement of this
                                    Act.</DELETED>
                                    <DELETED>    (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.</DELETED>
                                    <DELETED>    (III) Carry
                                    firearms.</DELETED>
                            <DELETED>    (ii) OEE personnel.--Any officer
                            and 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.</DELETED>
                    <DELETED>    (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:</DELETED>
                            <DELETED>    (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.</DELETED>
                            <DELETED>    (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.</DELETED>
                            <DELETED>    (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.</DELETED>
            <DELETED>    (4) Other authorities not affected.--The
            authorities conferred by this section are in addition to any
            authorities conferred under other laws.</DELETED>
    <DELETED>    (b) Forfeiture.--</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (2) Applicable laws.--Those provisions of law
            relating to--</DELETED>
                    <DELETED>    (A) the seizure, summary and judicial
                    forfeiture, and condemnation of property for violations
                    of the customs laws;</DELETED>
                    <DELETED>    (B) the disposition of such property or
                    the proceeds from the sale thereof;</DELETED>
                    <DELETED>    (C) the remission or mitigation of such
                    forfeitures; and</DELETED>
                    <DELETED>    (D) the compromise of claims,</DELETED>
            <DELETED>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.</DELETED>
            <DELETED>    (3) Forfeitures under customs laws.--Duties that
            are imposed upon the customs officer or any other person with
            respect to the seizure and forfeiture of property under the
            customs laws may be performed with respect to seizures and
            forfeitures of property under this subsection by the Secretary
            or any officer or employee of the Department that may be
            authorized or designated for that purpose by the Secretary, or,
            upon the request of the Secretary, by any other agency that has
            authority to manage and dispose of seized property.</DELETED>
    <DELETED>    (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 603 or to
    the Attorney General for criminal action in accordance with this Act or
    to both the Secretary and the Attorney General.</DELETED>
    <DELETED>    (d) Undercover Investigation Operations.--</DELETED>
            <DELETED>    (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--
            </DELETED>
                    <DELETED>    (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);</DELETED>
                    <DELETED>    (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;</DELETED>
                    <DELETED>    (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</DELETED>
                    <DELETED>    (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,</DELETED>
            <DELETED>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.</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (4) Audit and report.--</DELETED>
                    <DELETED>    (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.</DELETED>
                    <DELETED>    (B) Report.--The Secretary shall submit
                    annually to Congress a report, which may be included in
                    the annual report under section 801, specifying the
                    following information:</DELETED>
                            <DELETED>    (i) The number of undercover
                            investigative operations pending as of the end
                            of the period for which such report is
                            submitted.</DELETED>
                            <DELETED>    (ii) The number of undercover
                            investigative operations commenced in the 1-
                            year period preceding the period for which such
                            report is submitted.</DELETED>
                            <DELETED>    (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.</DELETED>
            <DELETED>    (5) Definitions.--For purposes of paragraph (4)--
            </DELETED>
                    <DELETED>    (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</DELETED>
                    <DELETED>    (B) the terms ``undercover investigative
                    operation'' and ``undercover operation'' mean any
                    undercover investigative operation conducted by the
                    OEE--</DELETED>
                            <DELETED>    (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</DELETED>
                            <DELETED>    (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).</DELETED>
    <DELETED>    (e) Wiretaps.--</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (2) Conforming amendment.--Section 2516(1) of
            title 18, United States Code, is amended by adding at the end
            the following:</DELETED>
                    <DELETED>    ``(q)(i) any violation of, or conspiracy
                    to violate, the Export Administration Act of 2001 or
                    the Export Administration Act of 1979.''.</DELETED>
    <DELETED>    (f) Post-Shipment Verification.--</DELETED>
            <DELETED>    (1) In general.--The Secretary shall target post-
            shipment verifications to exports involving the greatest risk
            to national security including, but not limited to, exports of
            high performance computers.</DELETED>
            <DELETED>    (2) Repeal.--Section 1213 of the National Defense
            Authorization Act for Fiscal Year 1998 is repealed.</DELETED>
    <DELETED>    (g) Refusal To Allow Post-Shipment Verification.--
    </DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (3) Refusal by country.--If the country in which
            the end-user is located refuses to allow post-shipment
            verification of a controlled item, 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.</DELETED>
    <DELETED>    (h) Award of Compensation; Patriot Provision.--</DELETED>
            <DELETED>    (1) In general.--If--</DELETED>
                    <DELETED>    (A) any person, who is not an employee or
                    officer of the United States, furnishes to a United
    States attorney, to the Secretary of the Treasury or the Secretary, or
    to appropriate officials in the Department of the Treasury or the
    Department of Commerce, original information concerning a violation of
    this Act or any regulation, order, or license issued under this Act,
    which is being, or has been, perpetrated or contemplated by any other
    person and in which the person furnishing the information has not
    participated, and</DELETED>
                    <DELETED>    (B) such information leads to the recovery
                    of any criminal fine, civil penalty, or
                    forfeiture,</DELETED>
            <DELETED>the Secretary and the Commissioner of Customs, may, in
            the sole discretion of the Secretary or the Commissioner, award
            and pay an amount that does not exceed 25 percent of the net
            amount recovered.</DELETED>
            <DELETED>    (2) Dollar limitation.--The amount awarded and
            paid to any person under this section may not exceed $250,000
            for any case.</DELETED>
            <DELETED>    (3) Source of payment.--The amount paid under this
            section shall be paid out of any penalties, forfeitures, or
            appropriated funds.</DELETED>
    <DELETED>    (i) 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.</DELETED>
    <DELETED>    (j) End-Use Verification Authorization.--</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (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:</DELETED>
                    <DELETED>    (A) The activities of the overseas
                    investigators of the Department.</DELETED>
                    <DELETED>    (B) The types of goods and technologies
                    that were subject to end-use verification.</DELETED>
                    <DELETED>    (C) The ability of the Department's
                    investigators to detect the illegal transfer of high
                    risk, dual-use goods and technologies.</DELETED>
            <DELETED>    (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.</DELETED>
    <DELETED>    (k) 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.</DELETED>
    <DELETED>    (l) 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.</DELETED>
    <DELETED>    (m) 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.</DELETED>
    <DELETED>    (n) 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.</DELETED>
    <DELETED>    (o) Amendments to Title 31.--</DELETED>
            <DELETED>    (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''.</DELETED>
            <DELETED>    (2) Section 9703(a)(2)(B)(i) of title 31, United
            States Code is amended (as added by Public Law 102-393)--
            </DELETED>
                    <DELETED>    (A) by striking ``or'' at the end of
                    subclause (I);</DELETED>
                    <DELETED>    (B) by inserting ``or'' at the end of
                    subclause (II); and</DELETED>
                    <DELETED>    (C) by inserting at the end, the following
                    new subclause:</DELETED>
                                    <DELETED>    ``(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;''.</DELETED>
            <DELETED>    (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.''.</DELETED>
    <DELETED>    (p) Authorization for License Review Officers.--</DELETED>
            <DELETED>    (1) In general.--There is authorized to be
            appropriated to the Department of Commerce $2,000,000 to hire
            additional license review officers.</DELETED>
            <DELETED>    (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--</DELETED>
                    <DELETED>    (A) train and certify, through a formal
                    program, new employees entering these positions for the
                    first time; and</DELETED>
                    <DELETED>    (B) the ongoing professional training of
                    experienced employees on an as needed basis.</DELETED>
    <DELETED>    (q) Authorization.--There are authorized to be
    appropriated to the Department of Commerce to carry out the purposes of
    this Act--</DELETED>
            <DELETED>    (1) $72,000,000 for the fiscal year 2002, of which
            no less than $27,701,000 shall be used for compliance and
            enforcement activities;</DELETED>
            <DELETED>    (2) $73,000,000 for the fiscal year 2003, of which
            no less than $28,312,000 shall be used for compliance and
            enforcement activities;</DELETED>
            <DELETED>    (3) $74,000,000 for the fiscal year 2004, of which
            no less than $28,939,000 shall be used for compliance and
            enforcement activities;</DELETED>
            <DELETED>    (4) $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</DELETED>
            <DELETED>    (5) 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.</DELETED>

    <DELETED>SEC. 608. ADMINISTRATIVE PROCEDURE.</DELETED>

    <DELETED>    (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.</DELETED>
    <DELETED>    (b) Procedures Relating to Civil Penalties and
    Sanctions.--</DELETED>
            <DELETED>    (1) Administrative procedures.--Any administrative
            sanction imposed under section 603 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.</DELETED>
            <DELETED>    (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 602 shall be made available
            for public inspection and copying.</DELETED>
    <DELETED>    (c) Collection.--If any person fails to pay a civil
    penalty imposed under section 603, 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.</DELETED>
    <DELETED>    (d) Imposition of Temporary Denial Orders.--</DELETED>
            <DELETED>    (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 603, 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.</DELETED>
            <DELETED>    (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--
            </DELETED>
                    <DELETED>    (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</DELETED>
                    <DELETED>    (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 603.</DELETED>
            <DELETED>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.</DELETED>
            <DELETED>    (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 the
    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 603. 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.</DELETED>
    <DELETED>    (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.</DELETED>

     <DELETED>TITLE VII--EXPORT CONTROL AUTHORITY AND REGULATIONS</DELETED>

    <DELETED>SEC. 701. EXPORT CONTROL AUTHORITY AND REGULATIONS.</DELETED>

    <DELETED>    (a) Export Control Authority.--</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (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.</DELETED>
    <DELETED>    (b) Under Secretary of Commerce; Assistant Secretaries.--
    </DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (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:</DELETED>
                    <DELETED>    (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.</DELETED>
                    <DELETED>    (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.</DELETED>
    <DELETED>    (c) Issuance of Regulations.--</DELETED>
            <DELETED>    (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(f) 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.</DELETED>
            <DELETED>    (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(f) in amending regulations issued under this
            Act.</DELETED>

    <DELETED>SEC. 702. CONFIDENTIALITY OF INFORMATION.</DELETED>

    <DELETED>    (a) Exemptions From Disclosure.--</DELETED>
            <DELETED>    (1) Information obtained on or before june 30,
            1980.--Except as otherwise provided by the third sentence of
            section 602(c)(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.</DELETED>
            <DELETED>    (2) Information obtained after june 30, 1980.--
            Except as otherwise provided by the third sentence of section
            13(b)(2) of the Export Administration Act of 1979, 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--</DELETED>
                    <DELETED>    (A) the export license or other export
                    authorization itself,</DELETED>
                    <DELETED>    (B) classification requests described in
                    section 501(h),</DELETED>
                    <DELETED>    (C) information or evidence obtained in
                    the course of any investigation,</DELETED>
                    <DELETED>    (D) information obtained or furnished
                    under title VII in connection with any international
                    agreement, treaty, or other obligation, and</DELETED>
                    <DELETED>    (E) information obtained in making the
                    determinations set forth in section 211 of this
                    Act,</DELETED>
            <DELETED>and information obtained in any investigation of an
            alleged violation of section 602 of this Act except for
            information required to be disclosed by section 602(c)(2) or
            606(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.</DELETED>
    <DELETED>    (b) Information to Congress and GAO.--</DELETED>
            <DELETED>    (1) In general.--Nothing in this title shall be
            construed as authorizing the withholding of information from
            Congress or from the General Accounting Office.</DELETED>
            <DELETED>    (2) Availability to the congress--</DELETED>
                    <DELETED>    (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.</DELETED>
                    <DELETED>    (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.</DELETED>
            <DELETED>    (3) Availability to the gao.--</DELETED>
                    <DELETED>    (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.</DELETED>
                    <DELETED>    (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.</DELETED>
    <DELETED>    (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.</DELETED>
    <DELETED>    (d) Penalties for Disclosure of Confidential
    Information.--</DELETED>
            <DELETED>    (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--
            </DELETED>
                    <DELETED>    (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</DELETED>
                    <DELETED>    (B) is exempt from disclosure under this
                    section.</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (3) Civil penalties; administrative sanctions.--
            The Secretary may impose a civil penalty of not more than
            $5,000 for each violation of paragraph (1). Any officer or
            employee who commits such violation may also be removed from
            office or employment for the violation of paragraph (1).
            Subsections 603 (e), (g), (h), and (i) and 606 (a), (b), and
            (c) shall apply to violations described in this
            paragraph.</DELETED>

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

    <DELETED>SEC. 801. ANNUAL AND PERIODIC REPORTS.</DELETED>

    <DELETED>    (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.</DELETED>
    <DELETED>    (b) Report Elements.--Each such report shall include in
    detail--</DELETED>
            <DELETED>    (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;</DELETED>
            <DELETED>    (2) a description of the changes to and the year-
            end status of country tiering and the Control List;</DELETED>
            <DELETED>    (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;</DELETED>
            <DELETED>    (4) a description of the regulations issued under
            this Act;</DELETED>
            <DELETED>    (5) a description of organizational and procedural
            changes undertaken in furtherance of this Act;</DELETED>
            <DELETED>    (6) a description of the enforcement activities,
            violations, and sanctions imposed under section 604;</DELETED>
            <DELETED>    (7) a statistical summary of all applications and
            notifications, including--</DELETED>
                    <DELETED>    (A) the number of applications and
                    notifications pending review at the beginning of the
                    fiscal year;</DELETED>
                    <DELETED>    (B) the number of notifications returned
                    and subject to full license procedure;</DELETED>
                    <DELETED>    (C) the number of notifications with no
                    action required;</DELETED>
                    <DELETED>    (D) the number of applications that were
                    approved, denied, or withdrawn, and the number of
                    applications where final action was taken;
                    and</DELETED>
                    <DELETED>    (E) the number of applications and
                    notifications pending review at the end of the fiscal
                    year;</DELETED>
            <DELETED>    (8) summary of export license data by export
            identification code and dollar value by country;</DELETED>
            <DELETED>    (9) an identification of processing time by--
            </DELETED>
                    <DELETED>    (A) overall average, and</DELETED>
                    <DELETED>    (B) top 25 export identification
                    codes;</DELETED>
            <DELETED>    (10) an assessment of the effectiveness of
            multilateral regimes, and a description of negotiations
            regarding export controls;</DELETED>
            <DELETED>    (11) a description of the significant differences
            between the export control requirements of the United States
            and those of other multilateral control regime members, the
            specific differences between United States requirements and
            those of other significant supplier countries, and a
            description of the extent to which the executive branch intends
    to address the differences;</DELETED>
            <DELETED>    (12) an assessment of the costs of export
            controls;</DELETED>
            <DELETED>    (13) a description of the progress made toward
            achieving the goals established for the Department dealing with
            export controls under the Government Performance Results Act;
            and</DELETED>
            <DELETED>    (14) 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.</DELETED>
    <DELETED>    (c) Congressional Notification.--Whenever the Secretary
    determines, in consultation with other appropriate departments and
    agencies, that a significant violation of this Act poses a direct and
    imminent threat to United States national security interests, the
    Secretary, in consultation with other appropriate departments and
    agencies, shall advise the Committee on Banking, Housing, and Urban
    Affairs of the Senate and the Committee on International Relations of
    the House of Representatives of such violation consistent with the
    protection of law enforcement sources, methods, and
    activities.</DELETED>
    <DELETED>    (d) Federal Register Publication Requirements.--Whenever
    information under this Act is required to be published in the Federal
    Register, such information shall, in addition, be made available on the
    appropriate Internet website of the Department.</DELETED>

    <DELETED>SEC. 802. TECHNICAL AND CONFORMING AMENDMENTS.</DELETED>

    <DELETED>    (a) Repeal.--The Export Administration Act of 1979 (50
    U.S.C. App. 2401 et seq.) is repealed.</DELETED>
    <DELETED>    (b) Energy Policy and Conservation Act.--</DELETED>
            <DELETED>    (1) Section 103 of the Energy Policy and
            Conservation Act (42 U.S.C. 6212) is repealed.</DELETED>
            <DELETED>    (2) Section 251(d) of the Energy Policy and
            Conservation Act (42 U.S.C. 6271(d)) is repealed.</DELETED>
    <DELETED>    (c) Alaska Natural Gas Transportation Act.--Section 12 of
    the Alaska Natural Gas Transportation Act of 1976 (15 U.S.C. 719j) is
    repealed.</DELETED>
    <DELETED>    (d) Mineral Leasing Act.--Section 28(u) of the Mineral
    Leasing Act (30 U.S.C. 185(u)) is repealed.</DELETED>
    <DELETED>    (e) Exports of Alaskan North Slope Oil.--Section 28(s) of
    the Mineral Leasing Act (30 U.S.C. 185(s)) is repealed.</DELETED>
    <DELETED>    (f) Disposition of Certain Naval Petroleum Reserve
    Products.--Section 7430(e) of title 10, United States Code, is
    repealed.</DELETED>
    <DELETED>    (g) Outer Continental Shelf Lands Act.--Section 28 of the
    Outer Continental Shelf Lands Act (43 U.S.C. 1354) is
    repealed.</DELETED>
    <DELETED>    (h) Arms Export Control Act.--</DELETED>
            <DELETED>    (1) Section 38 of the Arms Export Control Act (22
            U.S.C. 2778) is amended--</DELETED>
                    <DELETED>    (A) in subsection (e)--</DELETED>
                            <DELETED>    (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 603 of the Export Administration Act
                            of 2001, by subsections (a) and (b) of section
                            607 of such Act, and by section 702 of such
                            Act,''; and</DELETED>
                            <DELETED>    (ii) in the third sentence, by
                            striking ``11(c) of the Export Administration
                            Act of 1979'' and inserting ``603(c) of the
                            Export Administration Act of 2001'';
                            and</DELETED>
                    <DELETED>    (B) in subsection (g)(1)(A)(ii), by
                    inserting ``or section 603 of the Export Administration
                    Act of 2001'' after ``1979''.</DELETED>
            <DELETED>    (2) Section 39A(c) of the Arms Export Control Act
            is amended--</DELETED>
                    <DELETED>    (A) by striking ``subsections (c),'' and
                    all that follows through ``12(a) of such Act'' and
                    inserting ``subsections (c), (d), and (e) of section
                    603, section 608(c), and subsections (a) and (b) of
                    section 607, of the Export Administration Act of
                    2001''; and</DELETED>
                    <DELETED>    (B) by striking ``11(c)'' and inserting
                    ``603(c)''.</DELETED>
            <DELETED>    (3) Section 40(k) of the Arms Export Control Act
            (22 U.S.C. 2780(k)) is amended--</DELETED>
                    <DELETED>    (A) by striking ``11(c), 11(e), 11(g), and
                    12(a) of the Export Administration Act of 1979'' and
                    inserting ``603(b), 603(c), 603(e), 607(a), and 607(b)
                    of the Export Administration Act of 2001'';
                    and</DELETED>
                    <DELETED>    (B) by striking ``11(c)'' and inserting
                    ``603(c)''.</DELETED>
    <DELETED>    (i) Other Provisions of Law.--</DELETED>
            <DELETED>    (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''.</DELETED>
            <DELETED>    (2) Section 502B(a)(2) of the Foreign Assistance
            Act of 1961 (22 U.S.C. 2304(a)(2)) is amended in the second
            sentence--</DELETED>
                    <DELETED>    (A) by striking ``Export Administration
                    Act of 1979'' the first place it appears and inserting
                    ``Export Administration Act of 2001''; and</DELETED>
                    <DELETED>    (B) by striking ``Act of 1979)'' and
                    inserting ``Act of 2001)''.</DELETED>
            <DELETED>    (3) Section 140(a) of the Foreign Relations
            Authorization Act, Fiscal Years 1988 and 1989 (22 U.S.C.
            2656f(a)) is amended--</DELETED>
                    <DELETED>    (A) in paragraph (1)(B), by inserting ``or
                    section 310 of the Export Administration Act of 2001''
                    after ``Act of 1979''; and</DELETED>
                    <DELETED>    (B) in paragraph (2), by inserting ``or
                    310 of the Export Administration Act of 2001'' after
                    ``6(j) of the Export Administration Act of
                    1979''.</DELETED>
            <DELETED>    (4) 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''.</DELETED>
            <DELETED>    (5) 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''.</DELETED>
            <DELETED>    (6) 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''.</DELETED>
            <DELETED>    (7) 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''.</DELETED>
            <DELETED>    (8) 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''.</DELETED>
            <DELETED>    (9) Section 2332d(a) of title 18, United States
            Code, is amended by striking ``section 6(j) of the Export
            Administration Act of 1979 (50 U.S.C. App. 2405)'' and
            inserting ``section 310 of the Export Administration Act of
            2001''.</DELETED>
            <DELETED>    (10) 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''.</DELETED>
            <DELETED>    (11) 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''.</DELETED>
            <DELETED>    (12) Section 1956(c)(7)(D) of title 18, United
            States Code, is amended by striking ``section 11 (relating to
            violations) of the Export Administration of 1979'' and
            inserting ``section 603 (relating to penalties) of the Export
            Administration Act of 2001''.</DELETED>

    <DELETED>SEC. 803. SAVINGS PROVISIONS.</DELETED>

    <DELETED>    (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--</DELETED>
            <DELETED>    (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</DELETED>
            <DELETED>    (2) those provisions of the Arms Export Control
            Act which are amended by section 802,</DELETED>
    <DELETED>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.</DELETED>
    <DELETED>    (b) Administrative and Judicial Proceedings.--</DELETED>
            <DELETED>    (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.</DELETED>
            <DELETED>    (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 802,
            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 802.</DELETED>
    <DELETED>    (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.</DELETED>
    <DELETED>    (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.</DELETED>
    <DELETED>    (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.</DELETED>

    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.

            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.

                   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.

       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.

                      TITLE VII--MISCELLANEOUS PROVISIONS

    Sec. 701. Annual report.
    Sec. 702. Technical and conforming amendments.
    Sec. 703. Savings provisions.

    SEC. 2. DEFINITIONS.

         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; or
                                (iii) 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.
                                (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.
                                (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 tems.
            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 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
            (in this Act referred to as the ``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.
        (e) Regulations.--The Secretary may prescribe such regulations as
    are necessary to carry out the provisions of this Act.

    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, 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 by the business community on the
    export control advisory committees.
        (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, in consultation
            with the Secretary of Defense, the intelligence agencies, and
            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 would 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.
                (3) To deter acts of international terrorism.
        (c) End Use and End User Controls.--Notwithstanding any other
    provision of this title, 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.
        (d) Enhanced Controls.--
                (1) In general.--Notwithstanding any other provisions 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 would constitute a significant
            threat to the national security of the United States and that
            such item requires enhanced control. If the President
            determines that enhanced control should apply to such item, the
            item may be excluded from the provisions of section 204,
            section 211, or both, until such time as the President shall
            determine that such enhanced control should no longer apply to
            such item. The President may not delegate the authority
            provided for in this subsection.
                (2) Report to congress.--The President shall promptly
            report any 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.

    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 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 provided 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 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.
        (b) Risk Assessment.--
                (1) Requirement.--In establishing and maintaining the
            National Security Control List, 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 such 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 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).
        (c) Assessments.--The President shall make an assessment of each
    country in assigning a country tier taking into consideration risk
    factors including 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 capabilities regarding chemical,
            biological, and nuclear weapons and the country's membership
            in, and level of compliance with, relevant multilateral export
            control regimes.
                (4) The country's capabilities regarding missile systems
            and the country's membership in, 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 as defined in section 2(14) pursuant to an
            international agreement to which the United States is a party.
                (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.
        (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.

            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, or
                (3) upon receipt of a petition filed by an interested
            party,
    review and determine 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 party to petition the Secretary for a
            determination that an item has a foreign availability or mass-
            market status. In evaluating and making a determination with
            respect to a petition filed under this section, the Secretary
            shall consult with the Secretary of Defense, Secretary of
            State, and other appropriate Government agencies and with the
            Office of Technology Evaluation (established pursuant to
            section 214).
                (2) Time for making determination.--The Secretary shall,
            within 6 months after receiving a petition described in
            subsection (a)(3), determine 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.
        (c) Result of Determination.--In any case in which the Secretary
    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.--
                (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)--
                        (A) is available to controlled countries from
                    sources outside the United States, including countries
                    that participate with the United States in multilateral
                    export controls;
                        (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
                        (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.
                (2) Mass-market status.--
                        (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):
                                (i) The production and availability for
                            sale in a large volume to multiple potential
                            purchasers.
                                (ii) The widespread distribution through
                            normal commercial channels, such as retail
                            stores, direct marketing catalogues, electronic
                            commerce, and other channels.
                                (iii) The conduciveness to shipment and
                            delivery by generally accepted commercial means
                            of transport.
                                (iv) The use for the item's normal intended
                            purpose without substantial and specialized
                            service provided by the manufacturer,
                            distributor, or other third party.
                        (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.
                (3) Special rules.--For purposes of this subtitle--
                        (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, the properties, nature,
                    and quality of the item.
                        (B) Directly competitive item.--
                                (i) In general.--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.
                                (ii) Exception.--An item is not directly
                            competitive with a controlled item if the item
                            is substantially inferior to the controlled
                            item with respect to characteristics that
                            resulted in the export of the item being
                            controlled.

    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.

                   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.
        (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 date on which the President reports to
                    Congress the President's intention to impose controls
                    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 control is initially imposed or the date on which
                    the President reports to Congress the President's
                    intention to impose controls 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) a conclusion that the probable achievement of 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 the 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 on the date notice
    of the termination is 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 and except as provided in
    section 304, the President may impose controls on exports to a
    particular country or countries--
                (1) of items listed on the control list of a multilateral
            export control regime, as defined in section 2(14); 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 that--
                (1) the government of such country has repeatedly provided
            support for acts of international terrorism; and
                (2) 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 be approved for export by the Secretary only pursuant
    to an individual export license. 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,
    except that, if the Secretary does not agree with the Secretary of
    State with respect to any determination under paragraph (1) or (2), the
    matter shall be referred to the President for resolution.
        (b) Exception.--The provisions of this section shall not apply with
    respect to exports to countries that are members of the North Atlantic
    Treaty Organization or to Japan, Australia, or New Zealand, or to such
    other countries as the President shall designate consistent with the
    purposes of this section and section 502B of the Foreign Assistance Act
    of 1961 (22 U.S.C. 2304).

       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;
                                (ii) 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;
                                (iii) ensure that the classification stated
                            on the application for the export items is
                            correct; and
                                (iv) 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 in a prompt and responsible manner on an
            application. 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 referral departments
            and agencies 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 the referral 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 applicant shall be informed in writing, consistent
            with the protection of intelligence information sources and
            methods, by the Secretary 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.--Delays upon which the
            Secretary and the applicant mutually agree.
                (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.
        (h) Classification Requests and Other Inquiries.--
                (1) Classification requests.--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 and
    the head of any department or agency the Secretary considers
    appropriate. The Secretary shall, within 14 days after receiving the
    request, inform the person making the request of the proper
    classification.
                (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 chairperson 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.
                (2) Intelligence community.--The analytic product of the
            intelligence community should be fully considered with respect
            to any proposed license under this title.
                (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
                    majority vote 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.
        (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)(i) any violation of, or conspiracy to
                    violate, the Export Administration Act of 2001 or the
                    Export Administration Act of 1979.''.
        (f) Post-Shipment Verification.--The Secretary shall target post-
    shipment verifications to exports involving the greatest risk to
    national security.
        (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.--If the country in which the end-
            user is located refuses to allow post-shipment verification of
            a controlled item, 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) Limitation.--The authority granted by this Act shall
            terminate on September 30, 2004, unless the President carries
            out the following duties:
                        (A) Provides to Congress a detailed report on--
                                (i) the implementation and operation of
                            this Act; and
                                (ii) the operation of United States export
                            controls in general.
                        (B)(i) Provides to Congress legislative reform
                    proposals in connection with the report described in
                    subparagraph (A); or
                        (ii) certifies to Congress that no legislative
                    reforms are necessary in connection with such report.

    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.

    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,
                        (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). 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.

                      TITLE VII--MISCELLANEOUS PROVISIONS

    SEC. 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; and
                (15) 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. 702. 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) is 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.--
                (1) Section 38 of the Arms Export Control Act (22 U.S.C.
            2778) is amended--
                        (A) in subsection (e)--
                                (i) in the first sentence, by striking
                            ``subsections (c)'' and all that follows
                            through ``12 of such Act,'' and inserting
                            ``subsections (b), (c), (d) and (e) of section
                            503 of the Export Administration Act of 2001,
                            by subsections (a) and (b) of section 506 of
                            such Act, and by section 602 of such Act,'';
                            and
                                (ii) 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''; and
                        (B) in subsection (g)(1)(A)(ii), by inserting ``or
                    section 503 of the Export Administration Act of 2001''
                    after ``1979''.
                (2) Section 39A(c) of the Arms Export Control Act (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''; and
                        (B) by striking ``11(c)'' and inserting ``503(c)''.
                (3) Section 40(k) of the Arms Export Control Act (22 U.S.C.
            2780(k)) is amended--
                        (A) by striking ``11(c), 11(e), 11(g), and 12(a) of
                    the Export Administration Act of 1979'' and inserting
                    ``503(b), 503(c), 503(e), 506(a), and 506(b) of the
                    Export Administration Act of 2001''; and
                        (B) by striking ``11(c)'' and inserting ``503(c)''.
        (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) Section 502B(a)(2) of the Foreign Assistance Act of
            1961 (22 U.S.C. 2304(a)(2)) is amended in the second sentence--
                        (A) by striking ``Export Administration Act of
                    1979'' the first place it appears and inserting
                    ``Export Administration Act of 2001''; and
                        (B) by striking ``Act of 1979)'' and inserting
                    ``Act of 2001)''.
                (3) 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 310 of the
                    Export Administration Act of 2001'' after ``6(j) of the
                    Export Administration Act of 1979''.
                (4) 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''.
                (5) 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 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''.
                (7) 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''.
                (8) 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''.
                (9) Section 2332d(a) of title 18, United States Code, is
            amended by striking ``section 6(j) of the Export Administration
            Act of 1979 (50 U.S.C. App. 2405)'' and inserting ``section 310
            of the Export Administration Act of 2001''.
                (10) 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''.
                (11) 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''.
                (12) Section 1956(c)(7)(D) of title 18, United States Code,
            is amended by striking ``section 11 (relating to violations) of
            the Export Administration of 1979'' and inserting ``section 503
            (relating to penalties) of the Export Administration Act of
            2001''.
                (13) 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.
                (14) Section 904(2)(B) of the Trade Sanctions Reform and
            Export Enhancement Act of 2000 is amended by striking ``Export
            Administration Act of 1979'' and inserting ``Export
            Administration Act of 2001''.
                (15) 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 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)).
        (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.

    SEC. 703. 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.

                                                            Calendar No. 26

    107th CONGRESS

      1st Session

                                     S. 149

                              [Report No. 107-10]

    _______________________________________________________________________

                                     A BILL

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

    _______________________________________________________________________

                                 April 2, 2001

                           Reported with an amendment