[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5828 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 5828

   To enhance the reliability of information in the Automated Export 
                    System, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 17, 2008

 Mr. Manzullo (for himself and Mr. Smith of Washington) introduced the 
 following bill; which was referred to the Committee on Foreign Affairs

_______________________________________________________________________

                                 A BILL


 
   To enhance the reliability of information in the Automated Export 
                    System, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Securing Exports Through 
Coordination and Technology Act''.

SEC. 2. MANDATORY ELECTRONIC FILING OF EXPORT DATA.

    Section 1404(b) of the Foreign Relations Authorization Act, Fiscal 
Year 2003 (13 U.S.C. 301 note) is amended to read as follows:.
    ``(b) In General.--
            ``(1) Filing through aes.--The Secretary of Commerce, in 
        consultation with the Secretary of State, the Secretary of 
        Defense, the Secretary of the Treasury, and the Secretary of 
        Homeland Security, shall publish regulations in the Federal 
        Register to require that upon the effective date of the 
        regulations, persons who are required to file Shipper's Export 
        Declarations under chapter 9 of title 13, United States Code, 
        file (either themselves or through their intermediaries) such 
        Declarations through the Automated Export System before the 
        items are exported from any United States port, unless the 
        Secretary of Commerce determines that it is appropriate to 
        grant an exception to this requirement. Such filing of data 
        shall, at a minimum, include--
                    ``(A) the name and address of the principal party-
                in-interest in the United States;
                    ``(B) the foreign principal party-in-interest;
                    ``(C) all intermediate consignees;
                    ``(D) the ultimate consignee;
                    ``(E) the commodity classification of each item 
                being exported;
                    ``(F) when appropriate, the license number or 
                regulatory authorization for the export; and
                    ``(G) a declaration, under penalty of perjury under 
                the laws of the United States, that the information 
                filed under this paragraph is true and correct.
            ``(2) Intermediary defined.--In this subsection, the term 
        `intermediary' means a freight forwarder, a non-vessel 
        operating common carrier (NVOCC), an ATA (Admission Temporaire/
        Temporary Admission) Carnet national guaranteeing association 
        and its service providers, or any other similar entity as 
        determined by the Secretary of Commerce.''.

SEC. 3. CONFIDENTIALITY OF SHIPPER'S EXPORT DECLARATIONS; CONFERENCES; 
              AUTOMATED EXPORT SYSTEM LICENSES AND FILINGS.

    Chapter 9 of title 13, United States Code, is amended--
            (1) by redesignating sections 302 through 307 as sections 
        306 through 311, respectively; and
            (2) by inserting after section 301 the following new 
        sections:
``Sec. 302. Confidentiality of Shipper's Export Declarations
    ``(a) Confidentiality.--Shipper's Export Declarations and Automated 
Export System filings (or any successor document), wherever located, 
shall be exempt from disclosure to the public, except to the extent 
that the information in such filings is made available under subsection 
(b)(1) and is introduced into evidence, and made a part of the public 
record, in an enforcement proceeding pursuant thereto.
    ``(b) Sharing With Other Agencies and Governments.--
            ``(1) Agencies in the united states.--The Secretary shall, 
        if the Secretary determines that it is in the national interest 
        to do so, provide for the sharing of Shipper's Export 
        Declaration information with other Federal departments and 
        agencies in order to enforce or administer export laws and 
        regulations of the United States, and for such other purposes 
        as the Secretary may determine.
            ``(2) Foreign governments.--The Secretary may, if the 
        Secretary determines, on a case by case basis, that it is in 
        the national interest to do so, provide for the sharing of 
        Shipper's Export Declaration information with foreign 
        governments to assist in the enforcement of export laws and 
        regulations of the United States and to conduct and coordinate 
        programs to combat terrorism and the proliferation of weapons 
        of mass destruction, except that the sharing of such 
        information may be permitted only if the foreign government 
        concerned--
                    ``(A) has certified to the Secretary that the 
                information shared will only be used for the purpose of 
                enforcing export laws and regulations of the United 
                States, international agreements providing for the 
                nonproliferation of weapons to which the United States 
                is a party, or multilateral export control regimes to 
                which the United States is a party; and
                    ``(B) has, through a bilateral or multilateral 
                agreement (including a memorandum of understanding) to 
                which the United States is a party, agreed that the 
                information shared will not be disclosed to any 
                commercial entity.
    ``(c) Information Not To Be Withheld From Congress.--Nothing in 
this section shall be construed as authorizing the withholding of 
information from the Congress.
``Sec. 303. Conferences and seminars
    ``(a) Mandatory Conference Participation.--The Secretary shall work 
with the Secretary of State, the Secretary of Defense, the Secretary of 
Homeland Security, and the Secretary of the Treasury to ensure that 
appropriate personnel of each of their respective departments and 
agencies that are involved in the regulation of exports or the 
enforcement of such regulation are made available to participate in 
fora the purpose of which is to educate exporters about laws and 
regulations of the United States governing exports and about the 
Automated Export System in particular, including through seminars, 
educational or training meetings, exhibitions, symposiums, and other 
similar meetings.
    ``(b) Authority To Collect Fees.--The Secretary may collect fees 
from any individual or other person attending or participating in any 
forum described in subsection (a) that is conducted by, or jointly 
with, the Department of Commerce. The Secretary may use contractors to 
collect such fees. Fees under this subsection may be collected in 
advance of the forum.
    ``(c) Disposition of Collected Fees.--Amounts collected under 
subsection (b) shall be used to pay all or part of the cost of fora 
described in subsection (a), and shall be credited to the account from 
which the costs of such fora have been paid or will be paid.
    ``(d) Budget for Participating Agencies.--In the case of any agency 
that does not have the available funds to participate in a forum under 
subsection (a), the Secretary shall make such sums available, from fees 
collected under subsection (b), as are necessary to allow such 
participation by the agency.
    ``(e) Availability of Materials to the Public.--The Secretary shall 
make available to the public, including through its public website, the 
materials provided for the fora held under subsection (a).
``Sec. 304. Automated Export System licenses for filers
    ``(a) Licenses.--
            ``(1) In general.--The Secretary may establish a licensing 
        program to grant licenses to persons to file information in the 
        Automated Export System, either on behalf of themselves or 
        acting as an intermediary. Such licensing program may provide 
        licenses to individuals as well as any corporation, 
        association, or partnership that is organized under the laws of 
        the United States or of any State, the District of Columbia, or 
        any commonwealth, territory, or possession of the United 
        States. Such licensing program may further provide for the 
        authorization of multiple filers of data on behalf of any such 
        corporation, association, or partnership.
            ``(2) Qualifications for individuals.--The Secretary may 
        establish qualification requirements for an individual applying 
        for a license under this subsection, except that an individual 
        may be granted a license only if the individual is a United 
        States citizen, an alien lawfully admitted for permanent 
        residence to the United States, or a national of the United 
        States (in the case of a resident of a territory or possession 
        of the United States). In assessing the qualification of a 
        license applicant, the Secretary may conduct an examination to 
        determine the applicant's knowledge of the Automated Export 
        System and laws, regulations, and procedures related to the 
        export of goods from the United States, and may require 
        participation in a continuing education program on a periodic 
        basis. The Secretary may also obtain information to determine 
        an applicant's fitness and character to act as an Automated 
        Export System filer.
            ``(3) Licenses for corporations and other business 
        entities.--The Secretary may grant an Automated Export System 
        filing license to a corporation, association, or partnership 
        only if at least one official of the corporation or association 
        who is designated by the corporation or association, or one 
        member of the partnership who is authorized to act on behalf of 
        the partnership--
                    ``(A) holds a valid Automated Export System license 
                under paragraph (2);
                    ``(B) is responsible for the supervision and 
                control of filing Shipper's Export Declaration 
                information in the Automated Export System; and
                    ``(C) is a United States citizen, an alien lawfully 
                admitted for permanent residence to the United States, 
                or a national of the United States (in the case of a 
                resident of a territory or possession of the United 
                States).
            ``(4) Lapse of license.--Licenses under this subsection 
        shall be granted for a period of not less than 3 years, and may 
        be renewed in such manner and under such conditions as are 
        established by the Secretary.
    ``(b) Denial, Suspension, or Revocation of License.--
            ``(1) General rule.--The Secretary may deny, revoke, or 
        suspend a license or license application under subsection (a) 
        if the Secretary has reason to believe that the applicant or 
        licensee has violated or will violate any regulations issued by 
        the Secretary under this section or any law or regulation of 
        the United States controlling exports. The Secretary may 
        provide rules for notifying licensees and license applicants of 
        the Secretary's process for denying, revoking, or suspending a 
        license or license application, consistent with the Secretary's 
        responsibility to protect national security.
            ``(2) Procedures for denial, revocation, or suspension.--
                    ``(A) In general.--If an application is denied or a 
                license revoked or suspended under paragraph (1), the 
                Secretary shall send the applicant or licensee notice 
                in writing specifically setting forth the grounds for 
                denial, suspension, or revocation, shall allow the 
                applicant or licensee a period of 30 calendar days 
                beginning on the date on which the notice is received 
                to respond in writing, and shall advise the licensee or 
                applicant of the right to a hearing. An applicant or 
                licensee may request an extension of time for such 
                response, and the Secretary shall grant such extension 
                for good cause shown. If no response is filed within 
                that 30-day period, or any extension thereof, and the 
                Secretary determines that the denial, suspension, or 
                revocation is still warranted, the denial, suspension, 
                or revocation shall become final.
                    ``(B) Hearing.--If a timely response is received 
                under subparagraph (A) and the licensee or applicant 
                requests a hearing, a hearing shall be held within 30 
                calendar days after the date on which the request is 
                received, or at a later date if the applicant requests 
                an extension and shows good cause therefor. An 
                administrative law judge appointed under section 3105 
                of title 5, United States Code, shall preside at the 
                hearing, which shall be conducted in accordance with 
                regulations issued by the Secretary. The administrative 
                law judge shall issue a written decision, based solely 
                on the record, setting forth the findings of fact, and 
                the reasons for the decision.
                    ``(C) Suspension of license pending appeal.--In a 
                case in which a person appeals a decision revoking or 
                suspending a license under this subsection, including 
                an appeal under subsection (c), the Secretary may order 
                that the license continue to be suspended while the 
                appeal is pending.
    ``(c) Denial, Suspension, or Revocation of License.--
            ``(1) General rule.--The Secretary may deny, revoke, or 
        suspend a license or license application under subsection (a) 
        if the Secretary has reason to believe that the applicant or 
        licensee has violated or will violate any regulations issued by 
        the Secretary under this section or any law or regulation of 
        the United States controlling exports. The Secretary may 
        provide rules for notifying licensees and license applicants of 
        the Secretary's process for denying, revoking, or suspending a 
        license or license application, consistent with the Secretary's 
        responsibility to protect national security.
            ``(2) Procedures for denial, revocation, or suspension.--
                    ``(A) In general.--If an application is denied or a 
                license revoked or suspended under paragraph (1), the 
                Secretary shall send the applicant or licensee notice 
                in writing specifically setting forth the grounds for 
                denial, suspension, or revocation, shall allow the 
                applicant or licensee a period of 30 calendar days 
                beginning on the date on which the notice is received 
                to respond in writing, and shall advise the licensee or 
                applicant of the right to a hearing. An applicant or 
                licensee may request an extension of time for such 
                response, and the Secretary shall grant such extension 
                for good cause shown. If no response is filed within 
                that 30-day period, or any extension thereof, and the 
                Secretary determines that the denial, suspension, or 
                revocation is still warranted, the denial, suspension, 
                or revocation shall become final.
                    ``(B) Hearing.--If a timely response is received 
                under subparagraph (A) and the licensee or applicant 
                requests a hearing, a hearing shall be held within 30 
                calendar days after the date the request is received, 
                or at a later date if the applicant requests an 
                extension and shows good cause therefor. An 
                administrative law judge appointed under section 3105 
                of title 5, United States Code, shall preside at the 
                hearing, which shall be conducted in accordance with 
                regulations issued by the Secretary. The administrative 
                law judge shall issue a written decision, based solely 
                on the record, setting forth the findings of fact, and 
                the reasons for the decision.
                    ``(C) Suspension of license pending appeal.--In a 
                case in which a person appeals a decision revoking or 
                suspending a license under this subsection, including 
                an appeal under subsection (c), the Secretary may order 
                that the license continue to be suspended while the 
                appeal is pending.
            ``(3) Settlement and compromise.--The Secretary may settle 
        and compromise any proceeding that has been instituted under 
        this subsection according to the terms and conditions agreed to 
        by the parties, including the reduction of any proposed 
        suspension or revocation.
            ``(4) Limitation of actions.--A proceeding under this 
        subsection may be commenced only if the appropriate service of 
        written notice is made within 3 years after the date on which 
        the alleged act described in paragraph (1) was committed, 
        except that if the alleged act consists of fraud, the 3-year 
        period shall begin on the date on which the alleged act was 
        discovered.
    ``(d) Judicial Appeal.--
            ``(1) In general.--A licensee under this section, or an 
        applicant for a license under this section, may appeal any 
        decision of the Secretary denying, suspending, or revoking the 
        license by filing in the appropriate United States district 
        court, within 60 days after the date on which the decision is 
        issued, a written petition requesting that the decision be 
        modified or set aside in whole or in part. A copy of the 
        petition shall be served upon the Secretary or the Secretary's 
        designee. In cases involving revocation or suspension of a 
        license, the Secretary, after receiving the petition, shall 
        file in the court the record upon which the decision complained 
        of was entered.
            ``(2) Failure to appeal.--If an appeal is not filed within 
        the time limits specified in paragraph (1), the decision of the 
        Secretary shall be final and conclusive.
    ``(e) Fees and Charges.--The Secretary may issue regulations 
prescribing reasonable fees and charges, with particular sensitivity to 
small businesses, to defray the costs of the Secretary in carrying out 
this section.
    ``(f) Regulations.--The Secretary shall provide a period of at 
least 90 days for the submission of public comments on any regulations 
issued to carry out this section, before such regulations may become 
effective.
``Sec. 305. Blocking prohibited or restricted exports
    ``(a) In General.--The Secretary, in consultation with the 
Secretary of State, the Secretary of Defense, the Secretary of Homeland 
Security, and the Secretary of the Treasury, shall issue regulations to 
ensure that the Automated Export System will not accept the filing of 
data in connection with an export from the United States if the name or 
address of any party to a transaction involved in the intended export, 
or the country of destination of the intended export, would result in 
the export violating the prohibitions or restrictions in the export 
control or trade sanctions regulations administered by the Secretary, 
the Secretary of State, or the Secretary of the Treasury.
    ``(b) Incorporation Into Automated Export System of Changes in 
Law.--Not later than 1 year after the date of the enactment of Securing 
Exports Through Coordination and Technology Act, the Secretary, in 
consultation with the Secretary of State, the Secretary of Defense, the 
Secretary of Homeland Security, and the Secretary of the Treasury, 
shall ensure, to the extent feasible, that changes in laws and 
regulations controlling exports, including changes under the Arms 
Export Control Act, the Export Administration Act of 1979, the 
International Economic Emergency Powers Act, and the Foreign Assistance 
Act of 1961, are promptly reflected in the Automated Export System.
    ``(c) Minimum Requirements.--The Secretary shall ensure that the 
Automated Export System contains at least the following operational 
features and provides the following notifications to filers:
            ``(1) Codes entered into the Automated Export System to 
        identify an export, whether by classification under the 
        Harmonized Tariff Schedule or otherwise, will alert the 
        exporter of potential export license requirements under the 
        Export Administration Regulations or the International Traffic 
        in Arms Regulations (ITAR).
            ``(2) Automated Export System will issue a Fatal Error 
        notice when data entered for an export contain any of the 
        following:
                    ``(A) The name or address of an individual or legal 
                entity that has been described on any restricted party 
                list and the data are not accompanied by the necessary 
                export authorization.
                    ``(B) The intermediate or ultimate country of 
                destination is subject to trade sanctions imposed by 
                the United States and the data are not accompanied by 
                the necessary export authorization.
                    ``(C) In the case of defense articles and defense 
                services, the country of the intermediate or ultimate 
                consignee is subject to an arms embargo or prohibition 
                imposed by the United State and the data are not 
                accompanied by the necessary export license.
            ``(3) Automated Export System will issue compliance alerts 
        or other warnings to the filer when data for an export are 
        entered containing any of the following errors or omissions:
                    ``(A) The Harmonized Tariff System code is 
                inconsistent with the Export Control Classification 
                Number or the U.S. Munitions List Category.
                    ``(B) In the case of a dual use item, the license 
                exception is not available to the country of the 
                ultimate consignee or to the intermediate or ultimate 
                consignee.
                    ``(C) In the case of defense articles and defense 
                services, the U.S. Munitions List Category is 
                identified but no license number, exemption, or 
                exception is correctly identified.
            ``(4) Fatal Error notices, compliance alerts, or other 
        warnings are accompanied by references to the applicable 
        regulations and licensing authorities.
    ``(d) Definitions.--In this section:
            ``(1) Defense articles and defense services.--The term 
        `defense articles and defense services' has the meaning given 
        that term in section 47(7) of the Arms Export Control Act (22 
        U.S.C. 2794(7)).
            ``(2) Dual use item.--The term `dual use item' means an 
        item subject to export controls under the Export Administration 
        Act of 1979, as continued in effect pursuant to the 
        International Emergency Economic Powers Act.
            ``(3) Fatal error notice.--The term `fatal error notice' 
        means a notice that the transaction for which data are entered 
        into the Automated Export System cannot be completed.
            ``(4) Restricted party list.--The term `restricted party 
        list' means any list maintained by any department or agency of 
        the United States that is comprised of persons or entities to 
        whom exports are restricted, including the following:
                    ``(A) The Denied Parties List (or comparable 
                successor list) of the Department of Commerce under the 
                Export Administration Regulations (15 C.F.R. 764 
                Supplement No. 2).
                    ``(B) The Entity List (or comparable successor 
                list) of the Department of Commerce under the Export 
                Administration Regulations (15 C.F.R. 774 Supplement 
                No. 4).
                    ``(C) The list of entities under General Order No. 
                3 of the Department of Commerce under the Export 
                Administration Regulations (15 C.F.R. 736, Supp. No. 1) 
                (or comparable successor list).
                    ``(D) Those persons and entities with whom 
                transactions are blocked pursuant to section 203 of the 
                International Emergency Economic Powers Act (50 U.S.C. 
                1702).
                    ``(E) A person to whom exports of defense articles 
                or defense services are restricted under section 
                38(g)(4) of the Arms Export Control Act (22 U.S.C. 
                2778(g)(4)) or section 127.7 of title 22, Code of 
                Federal Regulations (or successor provision).
    ``(e) Construction.--Nothing in this section shall be construed to 
authorize an export because the Automated Export System accepts the 
filing of data.''.

SEC. 4. DEFINITIONS.

    Chapter 9 of title 13, United States Code, is amended by adding at 
the end the following new section:
``Sec. 312. Definitions
    ``In this chapter:
            ``(1) Automated export system.--The term `Automated Export 
        System' means the automated and electronic system for filing 
        export information established under this chapter.
            ``(2) Filer.--The term `filer' means an individual or legal 
        entity that is authorized to submit a Shipper's Export 
        Declaration or Automated Export System record to the Federal 
        Government.
            ``(3) Intermediary.--The term `intermediary' means a 
        freight forwarder, a non-vessel operating common carrier 
        (NVOCC), an ATA (Admission Temporaire/Temporary Admission) 
        Carnet national guaranteeing association and its service 
        providers, or any other similar entity as determined by the 
        Secretary.
            ``(4) Shipper's export declaration.--The term `Shipper's 
        Export Declaration' means the export information filed under 
        this chapter.''.

SEC. 5. CONFORMING AMENDMENTS.

    (a) Collection and Publication.--Section 301 of title 13, United 
States Code, is amended by striking subsection (g) and redesignating 
subsection (h) as subsection (g).
    (b) Regulations, Orders, etc.--Section 306 of title 13, United 
States Code, as redesignated by section 3(1) of this Act, is amended by 
striking the last sentence and inserting ``The Secretary shall make 
rules, regulations, and orders, and amendments thereto, in consultation 
with the Secretary of Homeland Security.''.
    (c) Cross References.--Section 309 of title 13, United States Code, 
as redesignated by section 3(1) of this Act, is amended--
            (1) in subsection (b), by striking ``304'' and inserting 
        ``308''; and
            (2) in subsection (c)--
                    (A) in paragraph (1), by striking ``304'' and 
                inserting ``308'';
                    (B) in paragraph (4), by striking ``306'' and 
                inserting ``310''; and
                    (C) in paragraph (5), by striking ``304'' and 
                inserting ``308''.
    (d) Table of Contents.--The table of contents for chapter 9 of 
title 13, United States Code, is amended to read as follows:

                              ``Chapter 9

``301. Collection and publication.
``302. Confidentiality of Shipper's Export Declarations.
``303. Conferences and seminars.
``304. Automated Export System licenses for filers.
``305. Blocking prohibited or restricted exports.
``306. Rules, regulations, and orders.
``307. Secretary of Treasury functions.
``308. Filing export information, delayed filings, penalties for 
                            failure to file.
``309. Penalties for unlawful export information activities.
``310. Delegation of functions.
``311. Relationship to general census law.
``312. Definitions.''.

SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as may be 
necessary to carry out the amendments made by this Act.
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