[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2004 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 2004

To authorize the President to control the transfer of goods, services, 
   technology, and software to protect the national security, and to 
    promote the foreign policy, of the United States, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 26, 2011

  Mr. Berman introduced the following bill; which was referred to the 
   Committee on Foreign Affairs, and in addition to the Committee on 
   Oversight and Government Reform, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To authorize the President to control the transfer of goods, services, 
   technology, and software to protect the national security, and to 
    promote the foreign policy, of the United States, and for other 
                               purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Technology 
Security and Antiboycott Act''.
    (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--TECHNOLOGY SECURITY

Sec. 101. Short title.
Sec. 102. Statement of policy.
Sec. 103. Authority of the President.
Sec. 104. Additional authorities.
Sec. 105. Transfer Policy Committee.
Sec. 106. Control lists.
Sec. 107. Licensing.
Sec. 108. Compliance assistance.
Sec. 109. Penalties.
Sec. 110. Enforcement.
Sec. 111. Administrative procedure.
Sec. 112. Annual report to Congress.
Sec. 113. Repeal.
Sec. 114. Effect on other Acts.
Sec. 115. Transition provisions.
                    TITLE II--ANTIBOYCOTT PROVISIONS

Sec. 201. Short title.
Sec. 202. Policy.
Sec. 203. Enforcement.
 TITLE III--SANCTIONS REGARDING MISSILE PROLIFERATION AND CHEMICAL AND 
                    BIOLOGICAL WEAPONS PROLIFERATION

Sec. 301. Missile proliferation control violations.
Sec. 302. Chemical and biological weapons proliferation sanctions.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Controlled.--Items are ``controlled'' if the transfer 
        of the items is controlled under title I.
            (2) Critical infrastructure.--The term ``critical 
        infrastructure''--
                    (A) means systems and assets, whether physical or 
                virtual, so vital to the United States that the 
                incapacity or destruction of such systems and assets 
                would have a debilitating impact on national security, 
                national economic security, national public health or 
                safety, or any combination of thereof;
                    (B) may be publicly or privately owned; and
                    (C) includes gas and oil production, storage, or 
                delivery systems, water supply systems, 
                telecommunications networks, electrical power 
                generation or delivery systems, financing and banking 
                systems, emergency services (including medical, police, 
                fire, and rescue services), transportation systems and 
                services (including highways, mass transit, airlines, 
                and airports), and food and agriculture delivery 
                systems.
            (3) Domestic defense industrial base.--The term ``domestic 
        defense industrial base'' has the meaning given that term in 
        section 702 of the Defense Production Act of 1950 (50 U.S.C. 
        App. 2152).
            (4) Dual-use.--The term ``dual-use'' means capable of being 
        applied for both civilian uses and uses that threaten the 
        national security and foreign policy of the United States 
        through military action, terrorist attack, or cyber attack.
            (5) Export administration regulations.--The term ``Export 
        Administration Regulations'' means the Export Administration 
        Regulations as promulgated, maintained, and amended under the 
        authority of the International Emergency Economic Powers Act 
        and codified, as of the date of the enactment of this Act, in 
        subchapter C of chapter VII of title 15, Code of Federal 
        Regulations.
            (6) Foreign person.--The term ``foreign person'' means a 
        person other than a United States person.
            (7) Good.--The term ``good'' means any article, natural or 
        manmade substance, material, supply, or manufactured product.
            (8) Item.--The term ``item'' means any goods, technology, 
        software, and services.
            (9) Person.--The term ``person'' includes the singular and 
        the plural and any individual, partnership, corporation, or 
        other form of association, including any government or agency 
        thereof.
            (10) Technology.--The term ``technology'' means the 
        information and knowhow (whether in tangible form, such as 
        models, prototypes, drawings, sketches, diagrams, blueprints, 
        or manuals, or in intangible form, such as training or 
        technical services) that can be used to design, produce, 
        manufacture, utilize, or reconstruct goods, including computer 
        software and technical data.
            (11) Transfer.--The term ``transfer'' includes--
                    (A) an export of an item from the United States or 
                a transshipment of an item through the United States, 
                the provision of services from the United States, and 
                the transmission of technology from the United States;
                    (B) the transfer of an item to a person within the 
                United States with the knowledge or intent that the 
                item will be exported or transmitted from the United 
                States to an unauthorized recipient under this title; 
                and
                    (C) a reexport of an item of United States origin, 
                whether or not by a person subject to the jurisdiction 
                of the United States.
            (12) United states.--The term ``United States''--
                    (A) means the several States, the District of 
                Columbia, and any commonwealth, territory, or 
                possession of the United States; and
                    (B) includes the outer Continental Shelf, as 
                defined in section 2(a) of the Outer Continental Shelf 
                Lands Act (43 U.S.C. 1331(a)).
            (13) United states person.--The term ``United States 
        person'' means--
                    (A) any individual who is a United States citizen 
                or an alien lawfully admitted for permanent residence 
                to the United States;
                    (B) any business or other entity operating in the 
                United States or organized under the laws of the United 
                States; and
                    (C) any business or other entity that is organized 
                under the laws of a foreign country but is controlled 
                in fact by a business or entity described in 
                subparagraph (B), as determined under regulations of 
                the President.
            (14) Weapons of mass destruction.--The term ``weapons of 
        mass destruction'' has the means nuclear, radiological, 
        chemical, and biological weapons and delivery systems for such 
        weapons.

                      TITLE I--TECHNOLOGY SECURITY

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Technology Security Act''.

SEC. 102. STATEMENT OF POLICY.

    The following is the policy of the United States:
            (1) The national security and foreign policy of the United 
        States require that the transfer of items be controlled for the 
        following purposes:
                    (A) To prevent the access to such items for use 
                in--
                            (i) the proliferation of weapons of mass 
                        destruction or of advanced conventional 
                        weapons;
                            (ii) the acquisition of destabilizing 
                        numbers or types of conventional weapons;
                            (iii) acts of terrorism;
                            (iv) military programs that could pose a 
                        threat to the security of the United States or 
                        its allies; or
                            (v) activities undertaken specifically to 
                        cause significant interference with or 
                        disruption of critical infrastructure.
                    (B) To preserve the qualitative military 
                superiority of the United States.
                    (C) To maintain the ability of the United States to 
                collect information and intelligence in order to 
                protect the national security of the United States.
                    (D) To sustain the domestic defense industrial 
                base.
                    (E) To protect the supply in the United States of 
                critical raw materials and manufactured items.
                    (F) To carry out the foreign policy of the United 
                States, including the protection of human rights and 
                the promotion of democracy.
                    (G) To carry out obligations and commitments under 
                international agreements and arrangements, including 
                multilateral export control regimes.
            (2) The national security of the United States requires 
        that the United States maintain its leadership in the science, 
        technology, and manufacturing sectors. Such leadership requires 
        that United States persons are competitive in global markets. 
        The impact of the implementation of this title on such 
        leadership and competitiveness must be evaluated on an ongoing 
        basis and applied in imposing controls under sections 103 and 
        104 to avoid negatively affecting such leadership.
            (3) The national security and foreign policy of the United 
        States require that the United States participate in 
        multilateral organizations and agreements regarding export 
        controls on items that are consistent with the policy of the 
        United States, and take all the necessary steps to secure the 
        adoption and enforcement, by the governments of other 
        countries, of export controls on items that are consistent with 
        such policy.
            (4) The authority under this title may be exercised only in 
        furtherance of all the objectives set forth in paragraphs (1), 
        (2), and (3).

SEC. 103. AUTHORITY OF THE PRESIDENT.

    (a) Authority.--
            (1) In general.--In order to carry out the policy set forth 
        in paragraphs (1), (2), and (3) of section 102, the President 
        shall control the transfer of items by United States persons, 
        wherever located, and by foreign persons who are subject to the 
        jurisdiction of the United States.
            (2) Powers.--In carrying out paragraph (1), the President 
        may investigate, regulate, direct and compel, nullify, void, 
        prevent, or prohibit any acquisition, holding, withholding, 
        use, transfer, withdrawal, transportation, exportation, 
        reexportation of, or dealing in, or exercising any right, 
        power, or privilege with respect to, or transactions involving, 
        items in which any foreign country or a national thereof has 
        any interest by any person, or with respect to any property, 
        subject to the jurisdiction of the United States.
    (b) Requirements.--In exercising authority under this title, the 
President shall impose controls to achieve the following objectives:
            (1) To prevent the transfer of items subject to the 
        controls that would pose a risk to the national security or 
        foreign policy of the United States in any manner described 
        under section 102(1)(A).
            (2) To secure the cooperation of other governments and 
        multilateral organizations to impose control systems that are 
        consistent, to the extent possible, with the controls imposed 
        under subsection (a).
            (3) To maintain the leadership of the United States in 
        science, engineering, technology research and development, and 
        manufacturing.
            (4) To sustain the viability of commercial firms, academic 
        institutions, and research establishments, and maintain the 
        skilled workforce of such firms, institutions, and 
        establishments, that are necessary to preserving the leadership 
        of the United States described in paragraph (3).
            (5) To sustain the domestic defense industrial base, both 
        with respect to current and future defense requirements.
            (6) To enforce the controls through regulations, 
        requirements for compliance, lists of controlled items, lists 
        of foreign persons who threaten the national security or 
        foreign policy of the United States, and guidance in a form 
        that facilitates compliance by United States persons, in 
        particular academic institutions, scientific and research 
        establishments, and small- and medium-sized businesses.

SEC. 104. ADDITIONAL AUTHORITIES.

    (a) In General.--In carrying out this title, the President shall--
            (1) establish and maintain lists of items that are subject 
        to controls under this title by reason of the dual-use 
        technology, capability, performance, or characteristics of the 
        items and that are controlled under section 103(a);
            (2) establish and maintain lists of foreign persons and 
        end-uses that are determined to be a threat to the national 
        security and foreign policy of the United States pursuant to 
        the policy set forth in section 102(1)(A) and to whom transfers 
        of items are controlled;
            (3) prohibit unauthorized transfers of controlled items;
            (4) prohibit transfers of any controlled items to any 
        foreign person or end-use listed under paragraph (2);
            (5) require licenses for transfers of controlled items, 
        including imposing conditions or restrictions on United States 
        persons and foreign persons with respect to such licenses;
            (6) require measures for compliance;
            (7) require and obtain such information from United States 
        persons and foreign persons as is necessary to carry out this 
        title;
            (8) require advance notice before an item is transferred, 
        as an alternative to requiring a license;
            (9) require, to the extent feasible, identification of 
        items subject to controls under this title in order to 
        facilitate the enforcement of such controls;
            (10) inspect, search, detain, or seize outgoing items, in 
        any form, that are subject to controls under this title, or 
        conveyances on which it is believed that there are items that 
        have been, are being, or are about to be exported in violation 
        of this title;
            (11) monitor shipments, or other means of transfer;
            (12) keep the public fully apprised of changes in policy, 
        regulations, and procedures established under this title;
            (13) appoint technical advisory committees in accordance 
        with the Federal Advisory Committee Act; and
            (14) undertake any other action as is necessary to carry 
        out this title and is not otherwise prohibited by law.
    (b) Relationship to IEEPA.--The authority under this title may not 
be used to regulate or prohibit under this title the transfer of any 
item that may not be regulated or prohibited under paragraph (1), (2), 
or (4) of section 203(b) of the International Emergency Economic Powers 
Act (50 U.S.C. 1702(b) (1), (2), and (4)).
    (c) Countries Supporting International Terrorism.--
            (1) License requirement.--A license shall be required for 
        the transfer of items to a country if the President has made 
        the following determinations:
                    (A) The government of such country has repeatedly 
                provided support for acts of international terrorism.
                    (B) The transfer of such items 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.
            (2) Notification to congress.--The President shall notify 
        the Committee on Foreign Affairs of the House of 
        Representatives and the Committee on Banking, Housing, and 
        Urban Affairs and the Committee on Foreign Relations of the 
        Senate at least 30 days before issuing any license required by 
        paragraph (1).
            (3) Publication in federal register.--Each determination of 
        the President under paragraph (1)(A) shall be published in the 
        Federal Register.
            (4) Rescission of determination.--A determination of the 
        President under paragraph (1)(A) may not be rescinded unless 
        the President submits to the Speaker of the House of 
        Representatives and the chairman of the Committee on Banking, 
        Housing, and Urban Affairs and the chairman of the Committee on 
        Foreign Relations of the Senate--
                    (A) before the proposed rescission would take 
                effect, a report certifying that--
                            (i) there has been a fundamental change in 
                        the leadership and policies of the government 
                        of the country concerned;
                            (ii) that government is not supporting acts 
                        of international terrorism; and
                            (iii) that government has provided 
                        assurances that it will not support acts of 
                        international terrorism in the future; or
                    (B) at least 45 days before the proposed rescission 
                would take effect, a report justifying the rescission 
                and certifying that--
                            (i) the government concerned has not 
                        provided any support for international 
                        terrorism during the preceding 6-month period; 
                        and
                            (ii) the government concerned has provided 
                        assurances that it will not support acts of 
                        international terrorism in the future.
            (5) Use of territory as sanctuary for terrorists.--
                    (A) In general.--As used in paragraph (1), the term 
                ``repeatedly provided support for acts of international 
                terrorism'' shall include the recurring use of any part 
                of the territory of the country as a sanctuary for 
                terrorists or terrorist organizations.
                    (B) Definitions.--In this paragraph--
                            (i) the term ``territory of a country'' 
                        means the land, waters, and airspace of the 
                        country; and
                            (ii) the term ``sanctuary'' means an area 
                        in the territory of a country--
                                    (I) that is used by a terrorist or 
                                terrorist organization--
                                            (aa) to carry out terrorist 
                                        activities, including training, 
                                        financing, and recruitment; or
                                            (bb) as a transit point; 
                                        and
                                    (II) the government of which 
                                expressly consents to, or with 
                                knowledge, allows, tolerates, or 
                                disregards such use of its territory.
            (6) Contents of notification of license.--The President 
        shall include in the notification required by paragraph (2)--
                    (A) a detailed description of the items to be 
                offered, including a brief description of the 
                capabilities of any article for which a license to 
                transfer the items is sought;
                    (B) the reasons why the foreign country or 
                international organization to which the transfer is 
                proposed to be made needs the items that are the 
                subject of such transfer, and a description of the 
                manner in which such country or organization intends to 
                use such items;
                    (C) the reasons why the proposed transfer is in the 
                national interest of the United States;
                    (D) an analysis of the impact of the proposed 
                transfer on the military capabilities of the foreign 
                country or international organization to which such 
                transfer would be made;
                    (E) an analysis of the manner in which the proposed 
                transfer would affect the relative military strengths 
                of countries in the region to which the items that are 
                the subject of such transfer would be delivered and 
                whether other countries in the region have comparable 
                kinds and amounts of items; and
                    (F) an analysis of the impact of the proposed 
                transfer on the relations of the United States with the 
                countries in the region to which the items that are the 
                subject of such transfer would be delivered.

SEC. 105. TRANSFER POLICY COMMITTEE.

    (a) Establishment.--The President may establish a Transfer Policy 
Committee (in this section referred to as the ``Committee''), composed 
of senior officials of Federal departments, agencies, and offices to 
which the President delegates authority under this title, as the 
President considers appropriate, to carry out the purposes set forth in 
subsection (b).
    (b) Purposes.--
            (1) In general.--The purposes of the Committee are--
                    (A) to advise the President with respect to--
                            (i) identifying specific threats to the 
                        national security and foreign policy that the 
                        authority of this title may be used to address; 
                        and
                            (ii) exercising the authority under this 
                        title to implement policies, regulations, 
                        procedures, and actions that are necessary to 
                        effectively counteract those threats;
                    (B) pursuant to a delegation of authority by the 
                President, to review and approve--
                            (i) criteria for including items on, and 
                        removing such an item from, a list of 
                        controlled items, and information established 
                        under this title;
                            (ii) an interagency procedure for compiling 
                        and amending any list described in clause (i);
                            (iii) criteria for including a person on a 
                        list of persons to whom transfers of items are 
                        prohibited or restricted under this title;
                            (iv) standards for compliance by persons 
                        subject to this title; and
                            (v) policies and procedures for monitoring 
                        transfers of items controlled under this title;
                    (C) to receive information and advice from any 
                United States Government official regarding any matter 
                with respect to which the Committee has 
                responsibilities; and
                    (D) to obtain an independent evaluation on a 
                periodic basis of the effectiveness of the 
                implementation of this title in carrying out the policy 
                set forth in section 102.
            (2) Authority to seek information.--The Committee may, in 
        carrying out its functions, seek information and advice from 
        experts who are not officers or employees of the Federal 
        Government.
            (3) Transmittal and implementation of evaluations.--The 
        results of the independent evaluations conducted pursuant to 
        paragraph (1)(D) shall be transmitted to the President and the 
        Congress, in classified form if necessary. Subject to the 
        delegation of authority by the President, the Committee shall 
        determine, direct, and ensure that improvements recommended in 
        the evaluations are implemented.

SEC. 106. CONTROL LISTS.

    The President shall, through the Technology Transfer Policy 
Committee, to the maximum extent possible, ensure that--
            (1) a process is established for regular review of each 
        list established under section 104(a)(1) and that such lists 
        are updated periodically to ensure that new items are 
        adequately controlled, and that the level of control of items 
        on the lists are adjusted as conditions change;
            (2) information and expertise is obtained from persons from 
        relevant Federal departments, agencies, and offices and persons 
        outside the Government who have technical expertise, with 
        respect to the characteristics of the items considered for each 
        list established under section 104(a)(1) and the effect of 
        controlling the items on addressing the policy set forth in 
        section 102;
            (3) the control lists established under section 104(a)(1) 
        identify each entry that has been included by virtue of the 
        participation of the United States in a multilateral regime, 
        organization, or group the purpose of which is consistent with 
        and supports the policy of the United States under this title 
        relating to the control of transfers of items; and
            (4) each such list is published in a form that facilitates 
        compliance with it, in particular by small and medium-sized 
        businesses and academic institutions.

SEC. 107. LICENSING.

    The President shall, through the Technology Transfer Policy 
Committee, establish a procedure for licensing the transfer of items 
controlled under this title in order to carry out the policy set forth 
in section 102 and the requirements set forth in section 103(b). The 
procedure shall, to the maximum extent possible, ensure that--
            (1) license applications are considered and decisions made 
        with the participation of departments, agencies, and offices 
        that have delegated functions under this title; and
            (2) licensing decisions are made in an expeditious manner, 
        with transparency to applicants on the status of license 
        processing and the reason for denying any license.

SEC. 108. COMPLIANCE ASSISTANCE.

    (a) System for Seeking Assistance.--The President may establish a 
system to provide United States persons with assistance in complying 
with this title, which may include a mechanism for providing 
information, in classified form as appropriate, on foreign persons who 
are potential customers, suppliers, or business partners with respect 
to items controlled under this title, in order to further ensure the 
prevention of the transfer of items that may pose a threat to the 
national security or foreign policy of the United States.
    (b) Security Clearances.--In order to carry out subsection (a), the 
President may issue appropriate security clearances to persons 
described in paragraph (1) who are responsible for complying with this 
title.

SEC. 109. PENALTIES.

    (a) Unlawful Acts.--It shall be unlawful for a person to violate, 
attempt to violate, conspire to violate, or cause a violation of this 
title or of any regulation, order, or license issued under this title.
    (b) Criminal Penalty.--A person who commits, attempts to commit, or 
conspires to commit, or aids or abets in the commission of, an unlawful 
act described in subsection (a), with knowledge or intent that the 
items that are the subject of the violation would be transferred to a 
person who is not authorized under this title to receive the items, or 
would be applied for a use described in section 102(1)(A), shall, upon 
conviction, be fined not more than $1,000,000, or, if a natural person, 
be imprisoned for not more than 20 years, or both.
    (c) Civil Penalties.--
            (1) Authority.--The President may impose the following 
        civil penalties on a person for each violation by that person 
        of this title or any regulation, order, or license issued under 
        this title, for each violation:
                    (A) A fine of not more than $250,000 or an amount 
                that is twice the amount of the transaction that is the 
                basis of the violation with respect to which the 
                penalty is imposed, whichever is greater.
                    (B) Revocation of a license issued under this title 
                to the person.
                    (C) A prohibition on the person's ability to 
                transfer outside the United States any items, whether 
                or not subject to controls under this title.
            (2) Procedures.--Any civil penalty under this subsection 
        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, and shall be subject to 
        judicial review in accordance with chapter 7 of such title.
            (3) Standards for levels of civil penalty.--The President 
        may by regulation provide standards for establishing levels of 
        civil penalty under this subsection based upon the seriousness 
        of the violation, the culpability of the violator, and the 
        violator's record of cooperation with the Government in 
        disclosing the violation.
    (d) Criminal Forfeiture of Property Interest and Proceeds.--
            (1) Forfeiture.--Any person who is convicted under 
        subsection (b) of a violation of a control imposed under 
        section 103 (or any regulation, order, or license issued with 
        respect to such control) shall, in addition to any other 
        penalty, forfeit to the United States--
                            (A) any of that person's interest in, 
                        security of, claim against, or property or 
                        contractual rights of any kind in the tangible 
                        items that were the subject of the violation;
                            (B) any of that person's interest in, 
                        security of, claim against, or property or 
                        contractual rights of any kind in tangible 
                        property that was used in the violation; and
                            (C) any of that person's property 
                        constituting, or derived from, any proceeds 
                        obtained directly or indirectly as a result of 
                        the violation.
                    (2) Procedures.--The procedures in any forfeiture 
                under this subsection, and the duties and authority of 
                the courts of the United States and the Attorney 
                General with respect to any forfeiture action under 
                this subsection or with respect to any property that 
                may be subject to forfeiture under this subsection, 
                shall be governed by the provisions of section 1963 of 
                title 18, United States Code.
    (e) Prior Convictions.--
            (1) License bar.--
                    (A) In general.--The President may--
                            (i) deny the eligibility of any person 
                        convicted of a criminal violation described in 
                        subparagraph (B) to transfer outside the United 
                        States any item, whether or not subject to 
                        controls under this title, for a period of up 
                        to 10 years beginning on the date of the 
                        conviction; and
                            (ii) revoke any license to transfer items 
                        that was issued under this title and in which 
                        such person has an interest at the time of the 
                        conviction.
                    (B) Violations.--The violations referred to in 
                subparagraph (A) are any criminal violation of--
                            (i) this title (or any regulation, license, 
                        or order issued under this title);
                            (ii) any regulation, license, or order 
                        issued under the International Emergency 
                        Economic Powers Act;
                            (iii) section 793, 794, or 798 of title 18, 
                        United States Code;
                            (iv) section 4(b) of the Internal Security 
                        Act of 1950 (50 U.S.C. 783(b)); or
                            (v) section 38 of the Arms Export Control 
                        Act (22 U.S.C. 2778).
            (2) Application to other parties.--The President may 
        exercise the authority under paragraph (1) with respect to any 
        person related, through affiliation, ownership, control, or 
        position of responsibility, to any person convicted of any 
        violation of law set forth in paragraph (1), upon a showing of 
        such relationship with the convicted party, and subject to the 
        procedures set forth in subsection (c)(2).
    (f) Other Authorities.--Nothing in subsection (c), (d), or (e) 
limits--
            (1) the availability of other administrative or judicial 
        remedies with respect to violations of this title, or any 
        regulation, order, or license issued under this title;
            (2) the authority to compromise and settle administrative 
        proceedings brought with respect to violations of this title, 
        or any regulation, order, or license issued under this title; 
        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. 110. ENFORCEMENT.

    (a) Authorities.--In order to enforce this title, the President 
may--
            (1) issue regulations, orders, and guidelines;
            (2) require, inspect, and obtain books, records, and any 
        other information from any person subject to the provisions of 
        this title;
            (3) 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;
            (4) conduct investigations (including undercover) in the 
        United States and in other countries, including intercepting 
        any wire, oral, and electronic communications, conducting 
        electronic surveillance, using pen registers and trap and trace 
        devices, and carrying out acquisitions, to the extent 
        authorized under chapters 119, 121, and 206 of title 18, United 
        States Code, and other applicable laws of the United States;
            (5) inspect, search, detain, or seize items, in any form, 
        that are subject to controls under this title, or conveyances 
        on which it is believed that there are items that have been, 
        are being, or are about to be exported in violation of this 
        title;
            (6) conduct prelicense inspections and post-shipment 
        verifications; and
            (7) execute warrants and make arrests.
    (b) Enforcement of Subpoenas.--In the case of contumacy by, or 
refusal to obey a subpoena issued to, any person under subsection 
(a)(3), a district court of the United States, after notice to 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, that are the 
subject of the subpoena. Any failure to obey such order of the court 
may be punished by such court as a contempt thereof.
    (c) Best Practices Guidelines.--
            (1) In general.--The President, in consultation with the 
        Interagency Transfer Policy Committee established under section 
        105, should publish and update ``best practices'' guidelines to 
        assist persons in developing and implementing, on a voluntary 
        basis, effective export control programs in compliance with the 
        regulations issued under this title.
            (2) Export compliance program.--The implementation by a 
        person of an effective export compliance program and a high 
        quality overall export compliance effort by a person should 
        ordinarily be given weight as mitigating factors in a civil 
        penalty action against the person under this title.
    (d) Reference to Enforcement.--For purposes of this section, a 
reference to the enforcement of, or a violation of, this title includes 
a reference to the enforcement or a violation of any order or license 
issued pursuant to this title.
    (e) Immunity.--A person shall not be excused from complying with 
any requirements under this section because of the person's privilege 
against self-incrimination, but the immunity provisions of section 6002 
of title 18, United States Code, shall apply with respect to any 
individual who specifically claims such privilege.
    (f) Confidentiality of Information.--
            (1) Exemptions from disclosure.--
                    (A) In general.--Information obtained under this 
                title may be withheld from disclosure only to the 
                extent permitted by statute, except that information 
                described in subparagraph (B) shall be withheld from 
                public disclosure and shall not be subject to 
                disclosure under section 552(b)(3) of title 5, United 
                States Code, unless the release of such information is 
                determined by the President to be in the national 
                interest.
                    (B) Information described.--Information described 
                in this subparagraph is information submitted or 
                obtained in connection with an application for a 
                license to transfer items, other transfer authorization 
                (or recordkeeping or reporting requirement), 
                enforcement activity, or other operations under this 
                title, including--
                            (i) the license application, license or 
                        other transfer authorization itself,
                            (ii) classification requests,
                            (iii) information or evidence obtained in 
                        the course of any investigation, and
                            (iv) information obtained or furnished in 
                        connection with any international agreement, 
                        treaty, or other obligation.
            (2) Information to the congress and gao.--
                    (A) In general.--Nothing in this section 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 any provision of the Export 
                        Administration Act of 1979 (including such Act 
                        as continued in effect pursuant to the 
                        International Emergency Economic Powers Act), 
                        under previous Acts regarding the control of 
                        exports, under the Export Administration 
                        Regulations, or under this title, including any 
                        report or license application required under 
                        any such provision, shall be made available to 
                        a 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 
                        such committee or subcommittee, or member 
                        thereof, may disclose any information obtained 
                        under the Export Administration Act of 1979 
                        (including such Act as continued in effect 
                        pursuant to the International Emergency 
                        Economic Powers Act), under previous Acts 
                        regarding the control of exports, under the 
                        Export Administration Regulations, or under 
                        this title, that is submitted on a confidential 
                        basis unless the full committee determines that 
                        the withholding of that information is contrary 
                        to the national interest.
                    (C) Availability to gao.--
                            (i) In general.--Information described in 
                        clause (i) of subparagraph (B) shall be subject 
                        to the limitations contained in section 716 of 
                        title 31, United States Code.
                            (ii) Prohibition on further disclosure.--An 
                        officer or employee of the Government 
                        Accountability Office may not disclose, except 
                        to the Congress in accordance with this 
                        paragraph, any such information that is 
                        submitted on a confidential basis or from which 
                        any individual can be identified.
            (3) Information sharing.--
                    (A) In general.--Any department, agency, or office 
                that obtains information that is relevant to the 
                enforcement of this title, including information 
                pertaining to any investigation, shall furnish such 
                information to each department, agency, or office with 
                enforcement responsibilities under this section to the 
                extent consistent with the protection of intelligence, 
                counterintelligence, and law enforcement sources, 
                methods, and activities.
                    (B) Exceptions.--The provisions of this paragraph 
                shall not apply to information subject to the 
                restrictions set forth in section 9 of title 13, United 
                States Code, and return information, as defined in 
                subsection (b) of section 6103 of the Internal Revenue 
                Code of 1986 (26 U.S.C. 6103(b)), may be disclosed only 
                as authorized by that section.
                    (C) Exchange of information.--The President shall 
                ensure that the heads of departments, agencies, and 
                offices with enforcement authorities under this title, 
                consistent with protection of law enforcement and its 
                sources and methods--
                            (i) exchange any licensing and enforcement 
                        information with one another that is necessary 
                        to facilitate enforcement efforts under this 
                        section; and
                            (ii) consult on a continuing basis with one 
                        another and with the head of other departments, 
                        agencies, and offices that obtain information 
                        subject to this paragraph, in order to 
                        facilitate the exchange of such information.
                    (D) Information sharing with federal agencies.--
                Licensing or enforcement information obtained under 
                this title may be shared with heads of departments, 
                agencies, and offices that do not have enforcement 
                authorities under this title on a case-by-case basis at 
                the discretion of the President. Such information may 
                be shared only when the President makes a determination 
                that the sharing of this information is in the national 
                interest.
    (g) Reporting Requirements.--In the administration of this section, 
reporting requirements shall be so designed as to reduce the cost of 
reporting, recordkeeping, and export documentation required under this 
section, to the extent feasible consistent with effective enforcement 
and compilation of useful trade statistics. Reporting, recordkeeping, 
and export documentation requirements shall be periodically reviewed 
and revised in the light of developments in the field of information 
technology.
    (h) Civil Forfeiture.--
            (1) In general.--Any tangible items seized under subsection 
        (a) by designated officers or employees shall be subject to 
        forfeiture to the United States in accordance with applicable 
        law, except that property seized shall be returned if the 
        property owner is not found guilty of a civil or criminal 
        violation under section 109.
            (2) Procedures.--Any seizure or forfeiture under this 
        subsection shall be carried in accordance with the procedures 
        set forth in section 981 of title 18, United States Code.

SEC. 111. ADMINISTRATIVE PROCEDURE.

    The functions exercised under this title shall be subject to 
sections 551, 553 through 559, and 701 through 706 of title 5, United 
States Code.

SEC. 112. ANNUAL REPORT TO CONGRESS.

    (a) In General.--The President shall submit to Congress, by 
December 31 of each year, a report on the implementation of this title 
during the preceding fiscal year. The report shall also include an 
analysis of--
            (1) the effect of controls imposed under this title on 
        transfers of items in addressing threats to the national 
        security or foreign policy of the United States;
            (2) the impact of such controls on the scientific and 
        technological leadership of the United States; and
            (3) the consistency with such controls of export controls 
        imposed by other countries.
    (b) Submission in Classified.--The report under subsection (a) may 
be submitted in classified form, in whole or in part, if necessary.

SEC. 113. REPEAL.

    The Export Administration Act of 1979 (50 U.S.C. App. 2401 et seq.) 
is repealed.

SEC. 114. EFFECT ON OTHER ACTS.

    (a) In General.--Except as otherwise provided in this title, 
nothing contained in this title shall be construed to modify, repeal, 
supersede, or otherwise affect the provisions of any other laws 
authorizing control over exports of any commodity.
    (b) Coordination of Controls.--The authority granted to the 
President under this title shall be exercised in such manner as to 
achieve effective coordination with the authority exercised under 
section 38 of the Arms Export Control Act (22 U.S.C. 2778).
    (c) Civil Aircraft Equipment.--
            (1) In general.--Notwithstanding any other provision of 
        law, any product described in paragraph (2) shall be subject to 
        export controls exclusively under this title. Any such product 
        shall not be subject to controls under section 38(b)(2) of the 
        Arms Export Control Act.
            (2) Products described.--A product described in this 
        paragraph is a product that--
                    (A) is standard equipment certified by the Federal 
                Aviation Administration, in civil aircraft and is an 
                integral part of such aircraft; and
                    (B) is to be transferred to a country other than a 
                country to which transfers of items are controlled 
                under this title.
    (d) Nonproliferation Controls.--Nothing in this title shall be 
construed to supersede the procedures published by the President 
pursuant to section 309(c) of the Nuclear Non-Proliferation Act of 
1978.

SEC. 115. TRANSITION 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 
the Export Administration Act of 1979 and are in effect at the time 
this title takes effect, shall continue in effect according to their 
terms until modified, superseded, set aside, or revoked under this 
title.
    (b) Administrative and Judicial Proceedings.--This title shall not 
affect any administrative or judicial proceedings commenced or any 
application for a license made, under the Export Administration Act of 
1979, that is pending at the time this title takes effect. Any such 
proceedings, and any action on such application, shall continue under 
the Export Administration Act of 1979 as if that Act had not been 
repealed.
    (c) Certain Determinations and References.--
            (1) State sponsors of terrorism.--Any determination that 
        was made under section 6(j) of the Export Administration Act of 
        1979, and is in effect on the day before the effective date of 
        this title, shall continue in effect as if the determination 
        had been made under section 104(c) of this Act.
            (2) Reference.--Any reference in any other provision of law 
        to a country the government of which the Secretary of State has 
        determined, for purposes of section 6(j) of the Export 
        Administration Act of 1979, is a government that has repeatedly 
        provided support for acts of international terrorism shall be 
        deemed to refer to a country the government of which the 
        President has determined, for purposes of section 104(c) of 
        this Act, is a government that has repeatedly provided support 
        for acts of international terrorism.

                    TITLE II--ANTIBOYCOTT PROVISIONS

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Antiboycott Act''.

SEC. 202. POLICY.

    (a) In General.--It is the policy of the United States--
            (1) to oppose 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 goods or technology or 
        other information to refuse to take actions, including 
        furnishing information or entering into or implementing 
        agreements, which have the effect of furthering or supporting 
        the restrictive trade practices or boycotts fostered or imposed 
        by any foreign country against a country friendly to the United 
        States or against any United States person; and
            (3) to foster international cooperation and the development 
        of international rules and institutions to assure reasonable 
        access to world supplies.
    (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, of 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) otherwise 
        prohibited, which are not within the intent of such exceptions.
    (c) Foreign Policy Controls.--In addition to the regulations issued 
pursuant to subsection (b), regulations issued under title I to carry 
out the policy set forth in section 102(3) shall implement the policies 
set forth in section.
    (d) Reports.--Regulations issued under this section 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 of Commerce, together with any other information concerning 
the request that the Secretary determines appropriate. The person shall 
also submit to the Secretary of Commerce a statement regarding whether 
the person intends to comply, and whether the person has complied, with 
the request. Any report filed pursuant to this subsection 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 kept confidential if the Secretary 
of Commerce determines that disclosure of that information would place 
the United States person involved at a competitive disadvantage. The 
Secretary of Commerce 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 of 
Commerce, considers appropriate to carry out the purposes set forth in 
subsection (a).
    (e) 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. 203. ENFORCEMENT.

    (a) Civil Penalties.--The President may impose the following civil 
penalties on a person who violates section 202 or any regulation issued 
under this section:
            (1) A fine of not more than $250,000 or an amount that is 
        twice the amount of the transaction that is the basis of the 
        violation with respect to which the penalty is imposed.
            (2) Revocation of a license issued under title I to the 
        person.
            (3) A prohibition of the person's right and ability to 
        export or otherwise transfer outside the United States any 
        good, service, or information, whether or not subject to 
        controls under this Act.
    (b) Procedures.--Any civil penalty under this section 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, and shall be subject to judicial review in accordance with 
chapter 7 of such title.
    (c) Standards for Levels of Civil Penalty.--The President may by 
regulation provide standards for establishing levels of civil penalty 
under this section based upon the seriousness of the violation, the 
culpability of the violator, and the violator's record of cooperation 
with the Government in disclosing the violation.

 TITLE III--SANCTIONS REGARDING MISSILE PROLIFERATION AND CHEMICAL AND 
                    BIOLOGICAL WEAPONS PROLIFERATION

SEC. 301. MISSILE PROLIFERATION CONTROL VIOLATIONS.

    (a) Violations by United States Persons.--
            (1) Sanctions.--
                    (A) Sanctionable activity.--The President shall 
                impose the applicable sanctions described in 
                subparagraph (B) 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 I 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.
                    (B) Sanctions.--The sanctions that 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 title 
                        I.
                            (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 transfer of which is controlled under title 
                        I.
            (2) Discretionary sanctions.--In the case of any 
        determination referred to in paragraph (1), the President may 
        pursue any other appropriate penalties under section 109 of 
        this Act.
            (3) 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.
    (b) Transfers of Missile Equipment or Technology by Foreign 
Persons.--
            (1) Sanctions.--
                    (A) Sanctionable activity.--Subject to paragraphs 
                (3) through (7), the President shall impose the 
                applicable sanctions under subparagraph (B) on a 
                foreign person if the President--
                            (i) determines that a foreign person 
                        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 
                                title I;
                                    (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
                            (ii) has made a determination with respect 
                        to the foreign person under section 73(a) of 
                        the Arms Export Control Act.
                    (B) Sanctions.--The sanctions that 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 transfer of which is controlled 
                        under title I.
                            (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 transfer of which is controlled under title 
                        I.
            (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 President 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 authority.--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) Notification and report to congress.--In the 
                event that the President decides to apply the waiver 
                described in subparagraph (A), the President shall so 
                notify the 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) Defense articles; defense services.--The terms 
        ``defense articles'' and ``defense services'' mean those items 
        on the United States Munitions List or are otherwise controlled 
        under the Arms Export Control Act.
            (2) 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.
            (3) 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.
            (4) 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.
            (5) MTCR annex.--The term ``MTCR Annex'' means the 
        Guidelines and Equipment and Technology Annex of the MTCR, and 
        any amendments thereto.
            (6) 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.
            (7) Foreign person.--The term ``foreign person'' means any 
        person other than a United States person.
            (8) Person.--The term ``person'' means a natural person, a 
        corporation, business association, partnership, society, or 
        trust, any other nongovernmental entity, organization, or 
        group, and any governmental entity operating as a business 
        enterprise, and any successor of any such entity.
            (9) 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. 302. 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 the sanction 
        described in subsection (c) if the President determines that a 
        foreign person 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 title, or
                    (B) through the export from any other country of 
                any item that would be, if they were United States 
                goods or technology, subject to the jurisdiction of the 
                United States under this title,
        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 January 1, 1980--
                            (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 104(c) of this Act 
                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.--A 
        sanction 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; 
                and
                    (C) any foreign person that is a parent, 
                subsidiary, or affiliate of that foreign person if that 
                parent, subsidiary, or affiliate knowingly assisted in 
                the activities which were the basis of that 
                determination.
    (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, the Congress urges the President to initiate 
        consultations immediately with the government with primary 
        jurisdiction over that foreign person with respect to the 
        imposition of a sanction 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 a sanction pursuant to this section for 
        a period of up to 90 days. Following such consultations, the 
        President shall impose the sanction unless the President 
        determines and certifies to the Congress that that government 
        has taken specific and effective actions, including appropriate 
        penalties, to terminate the involvement of the foreign person 
        in the activities described in subsection (a)(1). The President 
        may delay imposition of the sanction for an additional period 
        of up to 90 days if the President determines and certifies to 
        the Congress that that government is in the process of taking 
        the actions described in the preceding sentence.
            (3) Report to congress.--The President shall report to the 
        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) Sanction.--
            (1) Description of sanction.--The sanction to be imposed 
        pursuant to subsection (a)(1) is, except as provided that 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).
            (2) Exceptions.--The President shall not be required to 
        apply or maintain a sanction 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.--A sanction imposed pursuant to this 
section shall apply for a period of at least 12 months following the 
imposition of one sanction 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 the 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) Definitions.--In this section:
            (1) Defense articles; defense services.--The terms 
        ``defense articles'' and ``defense services'' mean those items 
        on the United States Munitions List or are otherwise controlled 
        under the Arms Export Control Act.
            (2) Foreign person.--The term ``foreign person'' means--
                    (A) an individual who is not a citizen of the 
                United States or an alien admitted for permanent 
                residence to the United States; or
                    (B) a corporation, partnership, or other 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.
            (3) Parent, subsidiary, affiliate.--An entity is--
                    (A) a ``parent'' of a foreign person if that entity 
                owns or controls that foreign person;
                    (B) a ``subsidiary'' of a foreign person if that 
                entity is owned or controlled by that foreign person; 
                and
                    (C) and ``affiliate'' of a foreign person if the 
                entity and the foreign person are under common 
                ownership or control by a third entity.
                                 <all>