[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4572 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 4572

      To revise and extend the Export Administration Act of 1979.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 16, 2005

   Mr. Hyde introduced the following bill; which was referred to the 
                  Committee on International Relations

_______________________________________________________________________

                                 A BILL


 
      To revise and extend the Export Administration Act of 1979.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Export Administration Renewal Act of 
2005''.

SEC. 2. CONGRESSIONAL DECLARATION OF POLICY.

    Section 3(a) of the Export Administration Act of 1979 (50 U.S.C. 
App. 2402(a)) is amended by adding at the end the following new 
paragraph:
            ``(15) It is the policy of the United States to utilize the 
        analytic product of the United States intelligence community 
        with respect to the consideration of any proposed license under 
        this Act.''.

SEC. 3. GENERAL PROVISIONS.

    Section 4 of the Export Administration Act of 1979 (50 U.S.C. App. 
2403) is amended by adding at the end the following new subsection:
    ``(h) Commodity Classification Review.--The President, in 
consultation with the Secretary and the heads of other appropriate 
departments and agencies, shall conduct a comprehensive review of the 
commodity classification process and the Export Control Classification 
Number (in this Act referred to as the `ECCN') system, taking into 
account--
            ``(1) the potential relevance of industrial technical 
        literature to ECCN classifications;
            ``(2) the extent of review for ECCN classifications;
            ``(3) consistency between United States ECCN definitions 
        and multilateral export control regime control lists;
            ``(4) any other applicable laws such as the Arms Export 
        Control Act; and
            ``(5) other appropriate considerations, including the 
        global war on terror.''.

SEC. 4. NATIONAL SECURITY CONTROLS.

    Section 5(f)(6) of the Export Administration Act of 1979 (50 U.S.C. 
App. 2404(f)(6)) is amended by striking ``Under Secretary of Commerce 
for Export Administration'' and inserting ``Under Secretary of Commerce 
for Industry and Security''.

SEC. 5. VIOLATIONS.

    Section 11 of the Export Administration Act of 1979 (50 U.S.C. App. 
2410) is amended--
            (1) by striking subsections (a) and (b) and inserting the 
        following:
    ``(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.'';
            (2) in subsection (c), by striking paragraph (1) and 
        inserting the following: ``(1) 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.'';
            (3) by striking subsections (g) and (h) and inserting the 
        following:
    ``(g) Violations Defined by Regulation.--Nothing in this section 
shall limit the authority of the Secretary to define by regulation 
violations under this Act.
    ``(h) Effect of Other Convictions.--
            ``(1) Denial of export privileges.--Any person convicted of 
        a violation described in paragraph (2) 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) Violations.--The violations referred to in paragraph 
        (1) are a violation of--
                    ``(A) a provision of this Act;
                    ``(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 items 
                subject to 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.
            ``(3) 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 (2), 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.''; and
            (4) by adding at the end the following new subsection:
    ``(j) Statute of Limitations.--
            ``(1) In general.--Except as provided in paragraph (2), a 
        proceeding in which a civil penalty or other administrative 
        sanction is sought under subsection (c) may not be commenced 
        more than 5 years after the date on which the claim first 
        accrued.
            ``(2) Exception.--
                    ``(A) Tolling.--In any case in which a criminal 
                indictment in connection with actions constituting 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 
                commencing 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 any person 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 beginning on the date on which the 
                defendant is convicted pursuant to the criminal 
                indictment, the indictment against the defendant is 
                dismissed, or the criminal action has otherwise 
                concluded.''.

SEC. 6. UNITED STATES POLICY ON MULTILATERAL EXPORT CONTROL REGIMES.

    The Export Administration Act of 1979 is amended by inserting after 
section 11C the following new section:

``SEC. 11D. U.S. POLICY ON MULTILATERAL EXPORT CONTROL REGIMES.

    ``(a) Multilateral Export Control Regimes.--
            ``(1) General policy.--It is the policy of the United 
        States to seek multilateral arrangements that support the 
        national security objectives of the United States.
            ``(2) Multilateral export control regimes.--In this 
        section, 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 (AG), the Wassenaar Arrangement, the Missile 
        Technology Control Regime (MTCR), and the Nuclear Suppliers 
        Group Dual Use Arrangement (NSG).
            ``(3) Objectives.--It is the intent of the Congress that 
        the United States seek to achieve the following objectives with 
        regard to multilateral export control regimes:
                    ``(A) Existing regimes.--
                            ``(i) Participation.--Continue its active 
                        participation in existing multilateral export 
                        control regimes, in accordance with subsection 
                        (b).
                            ``(ii) Strengthen.--Seek to attain the 
                        cooperation of members of each existing and 
                        future regime in implementing the standards 
                        outlined in subsection (c) for effective 
                        national export control systems.
                    ``(B) New regimes.--Consider participation in 
                additional multilateral export control regimes if such 
                participation would serve the national security 
                interests of the United States.
                    ``(C) Review and update.--Review and update 
                multilateral regime export control lists with other 
                members, taking into account--
                            ``(i) national security concerns, including 
                        the global war on terror;
                            ``(ii) the foreign availability of items; 
                        and
                            ``(iii) the costs and benefits of controls.
                    ``(D) Implementation by nonmembers.--Encourage 
                countries that are not members of the multilateral 
                export control regime--
                            ``(i) to strengthen their national export 
                        control regimes and improve enforcement;
                            ``(ii) to adhere to the guidelines of the 
                        appropriate multilateral export control regime;
                            ``(iii) not to undermine an existing 
                        multilateral export control regime by exporting 
                        controlled items in a manner inconsistent with 
                        the guidelines of the regime; and
                            ``(iv) to work with member countries in 
                        training government officials on the principles 
                        and procedures for implementing effective 
                        export controls.
            ``(4) Transparency of multilateral export control 
        regimes.--
                    ``(A) Publication of information on each existing 
                regime.--Not later than 120 days after the date of the 
                enactment of this section, 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 that regime:
                            ``(i) The purposes of the regime.
                            ``(ii) The members of the regime.
                            ``(iii) The export licensing policy of the 
                        regime.
                            ``(iv) The items that are subject to export 
                        controls under the regime, together with all 
                        related public notes, and all changes thereto.
                            ``(v) Any countries, end uses, or end users 
                        that are subject to the export controls of the 
                        regime.
                            ``(vi) Rules of interpretation.
                            ``(vii) Major policy actions.
                            ``(viii) The rules and procedures of the 
                        regime for establishing and modifying any 
                        matter described in clauses (i) through (vii).
                    ``(B) 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 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 information described in subparagraphs (i) 
                through (viii) of subparagraph (A) with respect to the 
                regime.
                    ``(C) Publication of changes.--Not later than 60 
                days after a multilateral export control regime adopts 
                any change in the information published under this 
                paragraph, the Secretary shall, to the extent not 
                inconsistent with the arrangements under that regime 
                (in the judgment of the Secretary of State) or the 
                national interest, publish such changes in the Federal 
                Register and post such changes on the Department of 
                Commerce website.
    ``(b) Standards for Multilateral Export Control Regimes.--It is the 
intent of the Congress that the President 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.--Supplier countries should be 
        considered for membership of the regime based on their acting 
        in accordance with the objectives and meeting the membership 
        criteria of the regime.
            ``(2) Effective implementation.--The regime promotes 
        implementation of the regime's rules and guidelines.
            ``(3) Public understanding.--The regime seeks to enhance 
        public understanding of the purpose and procedures of the 
        regime.
            ``(4) Effective interpretation procedures.--The regime has 
        procedures to promote the uniform and consistent interpretation 
        of its rules and guidelines.
            ``(5) Enhanced cooperation with regime nonmembers.--There 
        is agreement among the members of the regime--
                    ``(A) to cooperate with governments of countries 
                that are not members of the regime to restrict the 
                export of items controlled by the regime; and
                    ``(B) to 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 countries that are members of the 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 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 regime, and for adding items to the list of 
        controlled items when appropriate in light of the objectives of 
        the regime.
            ``(9) Global war on terror.--There is agreement--
                    ``(A) to prevent the export or diversion of 
                sensitive items to terrorist individuals and groups; 
                and
                    ``(B) to support the United States and its 
                international partners in the global war on terror.
            ``(10) Coordination of license approval procedures.--There 
        is coordination among the members of the regime regarding their 
        national export license approval procedures, practices, and 
        standards.
            ``(11) Undercutting.--The regime establishes rules with 
        respect to the approval of licenses for the export of any item 
        that is controlled pursuant to the regime, in cases in which a 
        member has denied an export license for such item to the 
        particular end user for reasons that are relevant to the 
        purposes of the regime.
            ``(12) Information sharing.--There are procedures for the 
        coordination and exchange of information about export licensing 
        among members of the regime, including--
                    ``(A) notification of the denial of licenses to 
                export sensitive items controlled under the regime to 
                countries that are not members of the regime, in cases 
                in which the reasons for denial are relevant to the 
                purposes of the regime; and
                    ``(B) notification of applications for licenses to 
                export goods and technology that are destined for 
                terrorist organizations or individuals.
    ``(c) Standards for National Export Control Systems.--It is the 
intent of the Congress that the President take steps to attain the 
cooperation of members of each multilateral export control regime in 
implementing effective national export control systems in accordance 
with the following:
            ``(1) Export control laws.--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 laws.
            ``(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 and enforce effectively the authorities, systems, 
        mechanisms, and procedures described in paragraphs (1) through 
        (5).
    ``(d) 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.
    ``(e) Annual Reports to Congress.--
            ``(1) On each multilateral export control regime.--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--
                    ``(A) the purpose and objectives of each 
                multilateral export control regime;
                    ``(B) the effectiveness of each multilateral export 
                control regime, including an assessment of the steps 
                undertaken pursuant to subsections (c) and (d), in 
                meeting those objectives;
                    ``(C) any proposals or actions made by the United 
                States to change the regime's control list;
                    ``(D) the response or position of the other regime 
                members to any such proposal or action made by the 
                United States; and
                    ``(E) the overall responsiveness of the regime to 
                any such action or proposal made by the United States.
            ``(2) Classification.--The reports, or any part of the 
        reports, under this subsection may be submitted in classified 
        form to the extent the President considers necessary.''.

SEC. 7. ENFORCEMENT.

    Section 12 of the Export Administration Act of 1979 (50 U.S.C. App. 
2411) is amended--
            (1) in subsection (a)--
                    (A) by striking paragraphs (1), (2), (3), and (4) 
                and inserting the following:
    ``(a) General Authority.--(1) To the extent necessary or 
appropriate to the enforcement of this Act or to the imposition of any 
penalty, forfeiture, or liability arising under this Act--
            ``(A) the head of any department or agency exercising any 
        function under this Act (and officers or employees of such 
        department or agency specifically designated by the head 
        thereof) may conduct investigations within the United States;
            ``(B) the Secretary of Homeland Security (and officers or 
        employees of U.S. Immigration and Customs Enforcement 
        specifically designated by the Secretary of the Department of 
        Homeland Security) and the Secretary (and officers and 
        employees of the Office of Export Enforcement of the Department 
        of Commerce specifically designated by the Secretary) may 
        conduct investigations outside of the United States;
            ``(C) the head of any such department or agency (and such 
        officers or employees) may obtain information from, require 
        reports or the keeping of records by, inspect the books, 
        records, and other writings, premises, or property of, and take 
        the sworn testimony of, any person;
            ``(D)(i) such officers or employees may administer oaths or 
        affirmations, and may by subpoena require any person to appear 
        and testify or to appear and produce books, records, and other 
        writings, or both; and
            ``(ii) in the case of contumacy by, or refusal to obey a 
        subpoena issued to, any such person, a district court of the 
        United States, after notice to any such person and hearing, 
        shall have jurisdiction to issue an order requiring such person 
        to appear and give testimony or to appear and produce books, 
        records, and other writings, or both, and any failure to obey 
        such order of the court may be punished by such court as a 
        contempt thereof; and
            ``(E) the Secretary (and officers or employees of the 
        Department of Commerce designated by the Secretary) may 
        conduct, outside the United States, pre-license investigations 
        and post-shipment verifications of items licensed for export.
            ``(2)(A) Subject to subparagraph (B), U.S. Immigration and 
        Customs Enforcement and U.S. Customs and Border Protection are 
        authorized, in the enforcement of this Act--
                    ``(i) to search, detain (after search), and seize 
                goods or technology at those places outside the United 
                States where such entities are authorized, pursuant to 
                agreements or other arrangements with other countries, 
                to perform enforcement activities; and
                    ``(ii) to conduct such activities at those ports of 
                entry or exit from the United States where officers of 
                U.S. Immigration and Customs Enforcement and U.S. 
                Customs and Border Protection are authorized by law to 
                conduct such activities.
            ``(B) An officer of U.S. Immigration and Customs 
        Enforcement or U.S. Customs and Border Protection may do the 
        following in carrying out enforcement authority under this Act:
                    ``(i) Stop, search, and examine a vehicle, vessel, 
                aircraft, or person on which or whom such officer has 
                reasonable cause to suspect there are any goods or 
                technology that has been, is being, or is about to be 
                exported from the United States in violation of this 
                Act.
                    ``(ii) Search any package or container in which 
                such officer has reasonable cause to suspect there are 
                any goods or technology that has been, is being, or is 
                about to be exported from the United States in 
                violation of this Act.
                    ``(iii) Detain (after search) or seize and secure 
                for trial any goods or technology on or about such 
                vehicle, vessel, aircraft, or person, or in such 
                package or container, if such officer has probable 
                cause to believe the goods or technology has been, is 
                being, or is about to be exported from the United 
                States in violation of this Act.
                    ``(iv) Make arrests without warrant for any 
                violation of this Act committed in his or her presence 
                or view or if the officer has probable cause to believe 
                that the person to be arrested has committed or is 
                committing such a violation.
            ``(C) The arrest authority conferred by subparagraph 
        (B)(iv) is in addition to any arrest authority under other 
        laws. U.S. Immigration and Customs Enforcement and U.S. Customs 
        and Border Protection may not detain for more than 20 days any 
        shipment of goods or technology eligible for export without 
        license application. In a case in which such detention is on 
        account of a disagreement between the Secretary and the head of 
        any other department or agency with export license authority 
        under other provisions of law concerning the export license 
        requirements for such goods or technology, such disagreement 
        shall be resolved within that 20-day period. At the end of that 
        20-day period, U.S. Immigration and Customs Enforcement or U.S. 
        Customs and Border Protection (as the case may be) shall either 
        release the goods or technology, or seize the goods or 
        technology as authorized by other provisions of law.
            ``(3)(A) Subject to subparagraph (B)--
                    ``(i) the Secretary shall have the responsibility 
                for the enforcement of section 8;
                    ``(ii) in the enforcement of the other provisions 
                of this Act, the Secretary is authorized to search, 
                detain (after search), and seize goods or technology--
                            ``(I) at those places within the United 
                        States other than those ports specified in 
                        paragraph (2)(A); and
                            ``(II) at those places outside the United 
                        States where the Office of Export Enforcement 
                        of the Department of Commerce, pursuant to 
                        agreements or other arrangements with other 
                        countries, is authorized to perform enforcement 
                        activities;
                    ``(iii) the search, detention (after search), or 
                seizure of goods or technology at those ports and 
                places specified in paragraph (2)(A) may be conducted 
                by officers or employees of the Department of Commerce 
                designated by the Secretary, with the concurrence of 
                U.S. Customs and Border Protection; and
                    ``(iv) enforcement activities conducted outside the 
                United States, except for pre-license investigations 
                and post-shipment verifications, shall be undertaken in 
                coordination with U.S. Immigration and Customs 
                Enforcement.
            ``(B) The Secretary may designate any employee of the 
        Office of Export Enforcement of the Department of Commerce to 
        do the following in carrying out the enforcement authority 
        conferred by this Act:
                    ``(i) Execute any warrant or other process issued 
                by a court or officer of competent jurisdiction.
                    ``(ii) Make arrests without warrant for any offense 
                against the United States committed in such officer's 
                presence or view or any felony offense against the 
                United States if such officer has probable cause to 
                believe that the person to be arrested has committed or 
                is committing that felony offense.
                    ``(iii) Carry firearms.
            ``(4) The authorities conferred by the Export 
        Administration Renewal Act of 2005 under paragraph (3) shall be 
        exercised consistent with guidelines approved by the Attorney 
        General.'';
                    (B) by striking paragraphs (6) and (7);
                    (C) by striking paragraph (8) and inserting the 
                following:
            ``(6)(A) The Secretary, in consultation with the technical 
        advisory committees established under section 5(h) and 
        exporters, shippers, trade facilitators, freight forwarders, 
        and reexporters representative of their respective industries, 
        shall continue to publish and update `best practices' 
        guidelines to help those industries develop and implement, on a 
        voluntary basis, effective export control programs in 
        compliance with this Act.
            ``(B) The existence of an effective export compliance 
        program and high quality overall export compliance efforts is 
        one factor which ordinarily should be accorded great weight as 
        a mitigating factor in civil penalty enforcement actions under 
        this Act.
            ``(7) 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, order, or license issued under this Act, and the 
        enforcement or violation of the Export Administration 
        Regulations as maintained and amended under the authority of 
        the International Emergency Economic Powers Act (50 U.S.C. 1701 
        et seq.), or any order or license issued pursuant to those 
        regulations.'';
            (2) in subsection (c)--
                    (A) by striking ``(c) Confidentiality'' and all 
                that follows through paragraph (2) and inserting the 
                following:
    ``(c) Confidentiality of Information.--
            ``(1) Exemptions from disclosure.--
                    ``(A) Information obtained on or before june 30, 
                1980.--Except as otherwise provided by the third 
                sentence of section 8(b)(2) and by section 11(c)(2)(C), 
                information obtained under this Act, 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.
                    ``(B) Information obtained after june 30, 1980.--
                Except as otherwise provided by the third sentence of 
                section 8(b)(2) and by section 11(c)(2)(C), information 
                obtained under this Act 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. 1701 et seq.), 
                may be withheld from disclosure only to the extent 
                permitted by statute, except that information submitted 
                or obtained in connection with an application for an 
                export license, other export authorization (or 
                recordkeeping or reporting requirement), enforcement 
                activity, or other operations under this Act, or under 
                the Export Administration Regulations as maintained and 
                amended under the authority of the International 
                Emergency Economic Powers Act, including--
                            ``(i) the export license or other export 
                        authorization itself,
                            ``(ii) classification requests described in 
                        section 10(l),
                            ``(iii) information or evidence obtained in 
                        the course of any investigation by an employee 
                        or officer of the Department of Commerce or any 
                        other department or agency of the United 
                        States,
                            ``(iv) information obtained or furnished 
                        under section 5 or 6 in connection with any 
                        international agreement, treaty, or other 
                        obligation, and
                            ``(v) information obtained in any 
                        investigation of an alleged violation of 
                        section 8, except for information required to 
                        be disclosed by section 8(b)(2),
                shall be withheld from public disclosure and shall not 
                be subject to disclosure under section 552 of title 5, 
                United States Code, unless the release of such 
                information is determined by the Secretary to be in the 
                national interest.
            ``(2) Information to the congress and the gao.--
                    ``(A) In general.--Nothing in this Act shall be 
                construed as authorizing the withholding of information 
                from the Congress or from the Government Accountability 
                Office.
                    ``(B) Availability to the congress.--
                            ``(i) In general.--Any information obtained 
                        at any time under this Act or under any 
                        predecessor Act, or under the Export 
                        Administration Regulations as maintained and 
                        amended under the authority of the 
                        International Emergency Economic Powers Act, 
                        regarding the control of exports, including any 
                        report or license application required under 
                        this Act, shall be made available to any 
                        committee or subcommittee of Congress of 
                        appropriate jurisdiction upon the request of 
                        the chairman or ranking minority member of such 
                        committee or subcommittee.
                            ``(ii) Prohibition on further disclosure.--
                        No committee, subcommittee, or Member of 
                        Congress shall disclose any information 
                        obtained under this Act, under any predecessor 
                        Act, or under the Export Administration 
                        Regulations as maintained and amended under the 
                        authority of the International Emergency 
                        Economic Powers Act, regarding the control of 
                        exports that is submitted on a confidential 
                        basis to the Congress under clause (i) unless 
                        the full committee to which the information is 
                        made available determines that the withholding 
                        of that information is contrary to the national 
                        interest.
                    ``(C) Availability to gao.--
                            ``(i) In general.--Notwithstanding 
                        subparagraph (B), information described in 
                        paragraph (1) 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 that agency, upon 
                        request, to the Comptroller General of the 
                        United States or to any officer or employee of 
                        the Government Accountability Office authorized 
                        by the Comptroller General to have access to 
                        such information.
                            ``(ii) Prohibition on further disclosure.--
                        No officer or employee of the Government 
                        Accountability Office shall disclose, except to 
                        the Congress in accordance with this 
                        subsection, any such information which is 
                        submitted on a confidential basis and from 
                        which any individual can be identified.''; and
                    (B) in paragraph (3)--
                            (i) by striking ``(3) Any'' and inserting 
                        ``(3) Information sharing.--Any'';
                            (ii) by moving the text of paragraph (3) 2 
                        ems to the right; and
                            (iii) by striking ``Commissioner of 
                        Customs'' each place it appears and inserting 
                        ``Secretary of Homeland Security''; and
            (3) by adding at the end the following new subsections:
    ``(f) 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 of Commerce that may be 
        authorized or designated for that purpose by the Secretary (or 
        by the Under Secretary for Border and Transportation Security 
        of the Department of Homeland Security (formerly the 
        Commissioner of Customs) or any officer or employee of the 
        Directorate for Border and Transportation Security (formerly 
        the United States Customs Service) designated by the Under 
        Secretary), or, upon the request of the Secretary, by any other 
        agency that has authority to manage and dispose of seized 
        property.
    ``(g) Undercover Investigation Operations.--
            ``(1) Use of funds.--With respect to any undercover 
        investigative operation conducted by the Office of Export 
        Enforcement of the Department of Commerce 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, section 8141 of title 40, 
                United States Code, sections 3732(a) and 3741 of the 
                Revised Statutes of the United States (41 U.S.C. 11(a) 
                and 22), and sections 304(a), 304A, 304B, 304C, and 305 
                of the Federal Property and Administrative Services Act 
                of 1949 (41 U.S.C. 254 (a), 254b, 254c, 254d, and 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 Secretary 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 
        Secretary shall report the circumstances to the Comptroller 
        General of the United States as much in advance of such 
        disposition as the Secretary 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 
        undercover investigative operation of the Office of Export 
        Enforcement of the Department of Commerce 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 Secretary shall conduct a 
                detailed financial audit of each closed undercover 
                investigative operation of the Office of Export 
                Enforcement of the Department of Commerce. Not later 
                than 180 days after an undercover operation is closed, 
                the Secretary shall submit to the Congress a report on 
                the results of the audit.
                    ``(B) Report.--The Secretary shall submit annually 
                to Congress a report, which may be included in the 
                annual report under section 14, including the following 
                information:
                            ``(i) The number of undercover 
                        investigative operations pending as of the end 
                        of the period for which the report is 
                        submitted.
                            ``(ii) The number of undercover 
                        investigative operations commenced in the 1-
                        year period preceding the period for which the 
                        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 
                Office of Export Enforcement of the Department of 
                Commerce--
                            ``(i) in which the gross receipts 
                        (excluding interest earned) exceed $25,000, or 
                        expenditures (other than expenditures for 
                        salaries of employees) exceed $75,000, and
                            ``(ii) which is exempt from section 3302 or 
                        9102 of title 31, United States Code,
                except that clauses (i) and (ii) shall not apply with 
                respect to the report to the Congress required by 
                paragraph (4)(B).
    ``(h) Wiretaps.--Interceptions of communications in accordance with 
section 2516 of title 18, United States Code, are authorized to further 
the enforcement of this Act.
    ``(i) Authorization for Bureau of Industry and Security.--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 Industry and Security of the Department of 
Commerce as a reimbursement in accordance with section 9703 of title 
31, United States Code (as added by Public Law 102-393).
    ``(j) Export Enforcement Account.--
            ``(1) Establishment.--There is established in the general 
        fund of the Treasury a separate fund which shall be known as 
        the `The BIS Export Enforcement Fund'. Notwithstanding any 
        other provision of this Act, there shall be deposited as 
        offsetting receipts into the BIS Export Enforcement Fund 
        amounts described in paragraph (2). Amounts in the BIS Export 
        Enforcement Fund shall remain available until expended.
            ``(2) Amounts described.--The amounts described in this 
        paragraph are civil penalties collected pursuant to regulations 
        issued, maintained, or amended under the Act, the International 
        Emergency Economic Powers Act, and any other statute pursuant 
        to which the Bureau of Industry and Security of the Department 
        of Commerce has the authority to impose civil penalties.
            ``(3) Transfers to other accounts.--The Secretary of the 
        Treasury shall transfer from the BIS Export Enforcement Fund to 
        the BIS Export Enforcement Account amounts equal to the 
        expenses incurred by the Secretary of Commerce for activities 
        that further the enforcement of the provisions of this Act. 
        Such activities include--
                    ``(A) the investigative travel expenses of agents 
                of the Office of Export Enforcement of the Department 
                of Commerce, including travel expenses for training 
                courses for such agents;
                    ``(B) storage costs for detained and seized items 
                related to investigations of violations of this Act; 
                and
                    ``(C) the purchase, repair, and maintenance of 
                equipment necessary for the operations of the Office of 
                Export Enforcement of the Department of Commerce.
            ``(4) Authorization of appropriations.--There are 
        authorized to be appropriated from the BIS Export Enforcement 
        Fund amounts not to exceed $1,000,000 for each fiscal year to 
        carry out the purposes set forth in this subsection.
            ``(5) Deposits into general fund.--At the end of each 
        fiscal year, any unobligated amount in excess of $1,000,000 
        remaining in the BIS Export Enforcement Fund shall be deposited 
        in the general fund of the Treasury.''.

SEC. 8. ADMINISTRATIVE PROCEDURE AND JUDICIAL REVIEW.

    Section 13(a) of the Export Administration Act of 1979 (50 U.S.C. 
App. 2412(a)) is amended in the first sentence by inserting ``or under 
the Export Administration Regulations as maintained and amended under 
the authority of the International Emergency Economic Powers Act (50 
U.S.C. 1701 et seq.)'' after ``under this Act''.

SEC. 9. ADMINISTRATIVE AND REGULATORY AUTHORITY.

    Section 15(a) of the Export Administration Act of 1979 (50 U.S.C. 
App. 2414(a)) is amended in the first sentence--
            (1) by striking ``Under Secretary of Commerce for Export 
        Administration'' and inserting ``Under Secretary of Commerce 
        for Industry and Security''; and
            (2) by striking ``such other statutes'' and all that 
        follows through the end of the sentence and inserting ``other 
        statutes that the Secretary has delegated to the Under 
        Secretary of Commerce for Industry and Security or any 
        predecessor (including the Under Secretary of Commerce for 
        Export Administration and the Assistant Secretary of Commerce 
        for Trade Administration) as of the date of the enactment of 
        the Export Administration Renewal Act of 2005, or may delegate 
        to the Under Secretary of Commerce for Industry and Security 
        from time to time.''.

SEC. 10. AUTHORIZATION OF APPROPRIATIONS.

    Section 18 of the Export Administration Act of 1979 (50 U.S.C. App. 
2417) is amended to read as follows:

                   ``authorization of appropriations

    ``Sec. 18. There are authorized to be appropriated to the 
Department of Commerce to carry out the purposes of this Act such sums 
as may be necessary for each fiscal year.''.

SEC. 11. TERMINATION DATE.

    Section 20 of the Export Administration Act of 1979 (50 U.S.C. App. 
2419) is amended to read as follows:

                           ``termination date

    ``Sec. 20. The authority granted by this Act terminates at the end 
of the 2-year period beginning on the date of the enactment of the 
Export Administration Renewal Act of 2005, except that the authority 
granted by section 12 of the Act shall not terminate.''.

SEC. 12. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Wiretapping.--Section 2516(1) of title 18, United States Code, 
is amended by adding at the end the following:
            ``(q) any violation of, or conspiracy to violate, the 
        Export Administration Act of 1979.''.
    (b) Pay of Under Secretary.--Section 5314 of title 5, United States 
Code, is amended by striking ``Under Secretary of Commerce for Export 
Administration'' and inserting ``Under Secretary of Commerce for 
Industry and Security''.
    (c) Amendments to Title 31, United States Code.--
            (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 Industry and Security of the 
        Department of Commerce''.
            (2) Section 9703(a)(2)(B)(i) of title 31, United States 
        Code (as added by Public Law 102-393), is amended--
                    (A) by striking ``or'' at the end of subclause (I);
                    (B) by inserting ``or'' at the end of subclause 
                (II); and
                    (C) by adding at the end the following new 
                subclause:
                                    ``(III) a violation of the Export 
                                Administration Act of 1979, or any 
                                regulation, license, or order issued 
                                under that Act;''.
            (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 Industry and Security of the Department of Commerce 
        shall be considered to be a Department of the Treasury law 
        enforcement organization.''.
    (d) Civil Forfeiture Proceedings.--Section 983(i)(2) of title 18, 
United States Code, is amended--
            (1) by striking ``or'' at the end of subparagraph (D);
            (2) by striking the period at the end of subparagraph (E) 
        and inserting ``; or''; and
            (3) by adding at the end the following new subparagraph:
                    ``(F) the Export Administration Act of 1979.''.
    (e) Clerical Amendment.--Paragraph (3) of section 11A(k) of the 
Export Administration Act of 1979 (50 U.S.C. App. 2410A(k)(3)) is 
amended--
            (1) by redesignating that paragraph as paragraph (2); and
            (2) by striking ``paragraph (2)'' and inserting ``paragraph 
        (1)''.
                                 <all>