1.Short title; table of
contents
(a)This Act may be cited
as the Technology Security and
Antiboycott Act
.
(b)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.
2.In this Act:
(1)Items are controlled
if the
transfer of the items is controlled under title I.
(2)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 baseThe 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)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 RegulationsThe 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)The term foreign person means a person other
than a United States person.
(7)The term good means any
article, natural or manmade substance, material, supply, or manufactured
product.
(8)The
term item means any goods, technology, software, and
services.
(9)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)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)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)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)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
destructionThe term
weapons of mass destruction has the means nuclear, radiological,
chemical, and biological weapons and delivery systems for such weapons.
<enum>I</enum><header>Technology
Security</header>
<section id="HE0050413532144B08AB00F269E91439F"><enum>101.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote>Technology Security Act</quote>.</text>
</section><section id="H6A24A88195024126ACA7F0A64948871C"><enum>102.</enum><header>Statement of
policy</header><text display-inline="no-display-inline">The following is the
policy of the United States:</text>
<paragraph id="H4B553C10A68A4673A8C2A68B88C51E26"><enum>(1)</enum><text display-inline="yes-display-inline">The national security and foreign policy of
the United States require that the transfer of items be controlled for the
following purposes:</text>
<subparagraph id="H58D5BD4A09C64CFBB6AF524D14199A83"><enum>(A)</enum><text display-inline="yes-display-inline">To prevent the access to such items for use
in—</text>
<clause id="H65F594513E31458FAC8558CF850D13E3"><enum>(i)</enum><text>the
proliferation of weapons of mass destruction or of advanced conventional
weapons;</text>
</clause><clause id="HFE018712B71147FD9A798E33A622B754"><enum>(ii)</enum><text display-inline="yes-display-inline">the acquisition of destabilizing numbers or
types of conventional weapons;</text>
</clause><clause id="H7A5A0621593946C2BEE12E5006482A6C"><enum>(iii)</enum><text>acts of
terrorism;</text>
</clause><clause commented="no" id="H8E8D0C8CA91B4F5B9E3E66FDAADC81E4"><enum>(iv)</enum><text display-inline="yes-display-inline">military programs that could pose a threat
to the security of the United States or its allies; or</text>
</clause><clause id="HE0E5BCFC6666420AB2725363A40F1B25"><enum>(v)</enum><text>activities
undertaken specifically to cause significant interference with or disruption of
critical infrastructure.</text>
</clause></subparagraph><subparagraph id="H58DB509DDD1A4CDF84C80A9C6779889A"><enum>(B)</enum><text>To preserve the
qualitative military superiority of the United States.</text>
</subparagraph><subparagraph id="HDB2856ECF6BB45EE975DB1173CFDB8B8"><enum>(C)</enum><text display-inline="yes-display-inline">To maintain the ability of the United
States to collect information and intelligence in order to protect the national
security of the United States.</text>
</subparagraph><subparagraph id="H07A0932DB29C4C9AB2FD6AC12BA4DF5D"><enum>(D)</enum><text>To sustain the
domestic defense industrial base.</text>
</subparagraph><subparagraph commented="no" id="H4F6C8BFC9E6F46508E4998FF354D9760"><enum>(E)</enum><text>To protect the
supply in the United States of critical raw materials and manufactured
items.</text>
</subparagraph><subparagraph id="HF24AB4100D69442B9FE260D82B0187D9"><enum>(F)</enum><text>To carry out the
foreign policy of the United States, including the protection of human rights
and the promotion of democracy.</text>
</subparagraph><subparagraph id="H2F7D8608D84742DAB3B902FC494A5E3C"><enum>(G)</enum><text>To carry out
obligations and commitments under international agreements and arrangements,
including multilateral export control regimes.</text>
</subparagraph></paragraph><paragraph id="HEA4F663C0AF747FE9AC86099E7111829"><enum>(2)</enum><text>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.</text>
</paragraph><paragraph id="H5B6139C4FA204E339E6CA980943CAF58"><enum>(3)</enum><text>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.</text>
</paragraph><paragraph id="H73FB87F6585C43CFA2D45878F61A6D5D"><enum>(4)</enum><text>The authority
under this title may be exercised only in furtherance of all the objectives set
forth in paragraphs (1), (2), and (3).</text>
</paragraph></section><section id="H6E055B39F7164C1BA491C7EE9C3D3140"><enum>103.</enum><header>Authority of
the President</header>
<subsection id="H78142B93038B42B4A170F5B07712CD58"><enum>(a)</enum><header>Authority</header>
<paragraph id="H5598CD041DDF4FB2A51433E428774223"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="H5318B55D8FCE4FDFA664132B1BA076B9"><enum>(2)</enum><header>Powers</header><text>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.</text>
</paragraph></subsection><subsection id="H2736B5F38F0543C4A546A65965855017"><enum>(b)</enum><header>Requirements</header><text>In
exercising authority under this title, the President shall impose controls to
achieve the following objectives:</text>
<paragraph id="HA1A9351419F6412FBC36ACFB089BD733"><enum>(1)</enum><text display-inline="yes-display-inline">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).</text>
</paragraph><paragraph id="H96455AF5DEFC4B4684258147A0169452"><enum>(2)</enum><text display-inline="yes-display-inline">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).</text>
</paragraph><paragraph id="H106D44548F1E49EB9B26A8C2D828B003"><enum>(3)</enum><text>To maintain the
leadership of the United States in science, engineering, technology research
and development, and manufacturing.</text>
</paragraph><paragraph id="H05A23222C0C9407697F8A60CF0BB8923"><enum>(4)</enum><text display-inline="yes-display-inline">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).</text>
</paragraph><paragraph commented="no" id="H97B06ACA9C95487BB1DD3F298571ADEB"><enum>(5)</enum><text>To sustain the
domestic defense industrial base, both with respect to current and future
defense requirements.</text>
</paragraph><paragraph id="H8CA8A20526CF466788723825AFA1BEF6"><enum>(6)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph></subsection></section><section id="HF2335D1327724B90B917B21C7477AD1C"><enum>104.</enum><header>Additional
authorities</header>
<subsection id="H789DEC3635284697B4C1120AB37A7ECA"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">In carrying out this
title, the President shall—</text>
<paragraph id="H7A46CFB77BFF455D9B98596035EFBEBD"><enum>(1)</enum><text>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);</text>
</paragraph><paragraph id="H3AE853BA7B11482A8EB10EC6D85DC815"><enum>(2)</enum><text>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;</text>
</paragraph><paragraph id="HB48F85195FF3438F9F1438C25186BF64"><enum>(3)</enum><text>prohibit
unauthorized transfers of controlled items;</text>
</paragraph><paragraph id="HBC1FA32F74E74834B365ADE851150F74"><enum>(4)</enum><text>prohibit transfers
of any controlled items to any foreign person or end-use listed under paragraph
(2);</text>
</paragraph><paragraph id="HE42C27C3B6EC4BD9A657BD69705013D4"><enum>(5)</enum><text>require licenses
for transfers of controlled items, including imposing conditions or
restrictions on United States persons and foreign persons with respect to such
licenses;</text>
</paragraph><paragraph id="H1AADBA6712C9487196FFF26DA2A5009F"><enum>(6)</enum><text>require measures
for compliance;</text>
</paragraph><paragraph id="H5EA744FAFD6A40BA9DD6AAC505D6D813"><enum>(7)</enum><text>require and obtain
such information from United States persons and foreign persons as is necessary
to carry out this title;</text>
</paragraph><paragraph id="H35A64B739CC44DBCB059ECCDFA734F81"><enum>(8)</enum><text>require advance
notice before an item is transferred, as an alternative to requiring a
license;</text>
</paragraph><paragraph id="H6658F25DD6F4461D9302C4874ACD8ED3"><enum>(9)</enum><text>require, to the
extent feasible, identification of items subject to controls under this title
in order to facilitate the enforcement of such controls;</text>
</paragraph><paragraph id="H96211A6C349C40E795A8ABD1FFC7E448"><enum>(10)</enum><text>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;</text>
</paragraph><paragraph id="HED287120A119403CAB233B421DE98528"><enum>(11)</enum><text>monitor
shipments, or other means of transfer;</text>
</paragraph><paragraph id="H56879020B21B4EED88364529DC1EA9F1"><enum>(12)</enum><text display-inline="yes-display-inline">keep the public fully apprised of changes
in policy, regulations, and procedures established under this title;</text>
</paragraph><paragraph id="HF94FE88A164F485CA966F67C2550F9C9"><enum>(13)</enum><text display-inline="yes-display-inline">appoint technical advisory committees in
accordance with the Federal Advisory Committee Act; and</text>
</paragraph><paragraph id="H4EA6F0BB12194F0E8B5C4C5389CC06FD"><enum>(14)</enum><text>undertake any
other action as is necessary to carry out this title and is not otherwise
prohibited by law.</text>
</paragraph></subsection><subsection commented="no" id="HE7ADD37054F34241991564F7979AB17D"><enum>(b)</enum><header>Relationship to
IEEPA</header><text>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)).</text>
</subsection><subsection id="H6AA2AB6854944095B1ABF6A382972651"><enum>(c)</enum><header>Countries
Supporting International Terrorism</header>
<paragraph display-inline="no-display-inline" id="H6E3EE8131084484488E2AFBBE0BE1C7D"><enum>(1)</enum><header>License
requirement</header><text>A license shall be required for the transfer of items
to a country if the President has made the following determinations:</text>
<subparagraph id="H97076F9690F644CF8113AD9B17FE7282"><enum>(A)</enum><text>The government of
such country has repeatedly provided support for acts of international
terrorism.</text>
</subparagraph><subparagraph id="HAFFE4739D55A42E3A3A35BC0FD52A492"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="HF0C1BB2F0BA6446A99AE309A7405450C"><enum>(2)</enum><header>Notification to
congress</header><text>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).</text>
</paragraph><paragraph id="H655F173912A44AA4AACE72874C5B9520"><enum>(3)</enum><header>Publication in
federal register</header><text>Each determination of the President under
paragraph (1)(A) shall be published in the Federal Register.</text>
</paragraph><paragraph id="H8159E3630EAB4B2B8FB54D23BF50E0A3"><enum>(4)</enum><header>Rescission of
determination</header><text>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—</text>
<subparagraph id="H11F0684919744D048E7D8BDB007F29E5"><enum>(A)</enum><text>before the
proposed rescission would take effect, a report certifying that—</text>
<clause id="H8E837A76A6094654A250B9AFFE3CD37F"><enum>(i)</enum><text>there has been a
fundamental change in the leadership and policies of the government of the
country concerned;</text>
</clause><clause id="H9DA3D12645D74955B57618208CFFC74E"><enum>(ii)</enum><text>that government
is not supporting acts of international terrorism; and</text>
</clause><clause id="H8494AE78CFB54356A7EE164E76A80647"><enum>(iii)</enum><text>that government
has provided assurances that it will not support acts of international
terrorism in the future; or</text>
</clause></subparagraph><subparagraph id="HE79E6D7B9AA34F4CAD6E4863E80B6796"><enum>(B)</enum><text>at least 45 days
before the proposed rescission would take effect, a report justifying the
rescission and certifying that—</text>
<clause id="H805DBEEC7E944B7EA4159D04FAD23BCF"><enum>(i)</enum><text>the
government concerned has not provided any support for international terrorism
during the preceding 6-month period; and</text>
</clause><clause id="HB40A1891CE0740B780B9D23698C73618"><enum>(ii)</enum><text>the
government concerned has provided assurances that it will not support acts of
international terrorism in the future.</text>
</clause></subparagraph></paragraph><paragraph id="H321C49822E224B398D9CCF45D4498181"><enum>(5)</enum><header>Use of territory
as sanctuary for terrorists</header>
<subparagraph display-inline="no-display-inline" id="HF0CCD3513E45489E8F3118A303A92642"><enum>(A)</enum><header>In
general</header><text>As used in paragraph (1), the term <term>repeatedly
provided support for acts of international terrorism</term> shall include the
recurring use of any part of the territory of the country as a sanctuary for
terrorists or terrorist organizations.</text>
</subparagraph><subparagraph id="H5C34261E292545CAB3F596001A332708"><enum>(B)</enum><header>Definitions</header><text>In
this paragraph—</text>
<clause id="HBC8F9A13409547749543BD92D2DADC66"><enum>(i)</enum><text>the
term <term>territory of a country</term> means the land, waters, and airspace
of the country; and</text>
</clause><clause id="H5BC3FC48963A4B3E94FA8D4C8039F68B"><enum>(ii)</enum><text>the
term <term>sanctuary</term> means an area in the territory of a country—</text>
<subclause id="H01FF5FC9DBC54F5E845A71A353A749DD"><enum>(I)</enum><text>that is used by a
terrorist or terrorist organization—</text>
<item id="H226B956ECE1942EEABD0A76C944A1AB9"><enum>(aa)</enum><text>to
carry out terrorist activities, including training, financing, and recruitment;
or</text>
</item><item id="HBAD8B2BB402042EAA61843266F07F906"><enum>(bb)</enum><text>as a
transit point; and</text>
</item></subclause><subclause id="H783057327F9C4DEFAB7919CD11A8EE5F"><enum>(II)</enum><text>the government of
which expressly consents to, or with knowledge, allows, tolerates, or
disregards such use of its territory.</text>
</subclause></clause></subparagraph></paragraph><paragraph id="H8FA08FBAECA5452384A3A58CFFAADFFD"><enum>(6)</enum><header>Contents of
notification of license</header><text>The President shall include in the
notification required by paragraph (2)—</text>
<subparagraph id="H8ADF8640706F4850AC978363C7C4A4A8"><enum>(A)</enum><text>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;</text>
</subparagraph><subparagraph id="H3BFB70ECADC045C494DA55A080BD37DA"><enum>(B)</enum><text>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;</text>
</subparagraph><subparagraph id="HF6651F2ACEAA4A0ABEAA796C1D1AE4F1"><enum>(C)</enum><text>the reasons why
the proposed transfer is in the national interest of the United States;</text>
</subparagraph><subparagraph id="HB0CE2CD1577041369F74D4DC64725B1C"><enum>(D)</enum><text>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;</text>
</subparagraph><subparagraph id="H3434D9225EA14E1DA78AACCF1B6B5295"><enum>(E)</enum><text>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</text>
</subparagraph><subparagraph id="H20254571B39D40EDA23A4C8BC411CAC7"><enum>(F)</enum><text>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.</text>
</subparagraph></paragraph></subsection></section><section id="H5476A3066C084CDB9E02ACF3DB05BFDF"><enum>105.</enum><header>Transfer Policy
Committee</header>
<subsection id="HB61CD576EC114866B8811ACE9044F0BD"><enum>(a)</enum><header>Establishment</header><text>The
President may establish a Transfer Policy Committee (in this section referred
to as the <quote>Committee</quote>), 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).</text>
</subsection><subsection id="H0920369BA4354CB4B1CC002AD1C8A849"><enum>(b)</enum><header>Purposes</header>
<paragraph id="H90C6029B627244ADAEF29CC04A7E0AB0"><enum>(1)</enum><header>In
general</header><text>The purposes of the Committee are—</text>
<subparagraph id="H185F44F518FE43399938575AD9F5DD70"><enum>(A)</enum><text>to advise the
President with respect to—</text>
<clause id="HC52038A6B20347518B0F07605FCACBA0"><enum>(i)</enum><text display-inline="yes-display-inline">identifying specific threats to the
national security and foreign policy that the authority of this title may be
used to address; and</text>
</clause><clause id="H74666A02F6114C3D952AABF0C607F1F1"><enum>(ii)</enum><text>exercising the
authority under this title to implement policies, regulations, procedures, and
actions that are necessary to effectively counteract those threats;</text>
</clause></subparagraph><subparagraph id="H168023718B8F4AC2ADCC7CBA9E77D749"><enum>(B)</enum><text>pursuant to a
delegation of authority by the President, to review and approve—</text>
<clause id="H9339A81D4407482486553AC525C69357"><enum>(i)</enum><text>criteria for
including items on, and removing such an item from, a list of controlled items,
and information established under this title;</text>
</clause><clause id="HFA59DC0BBA9845C19F91A37A7D80F3FB"><enum>(ii)</enum><text>an
interagency procedure for compiling and amending any list described in clause
(i);</text>
</clause><clause id="H23B07418DD824C94B380A65EFA258FEC"><enum>(iii)</enum><text>criteria for
including a person on a list of persons to whom transfers of items are
prohibited or restricted under this title;</text>
</clause><clause id="HC56C88C7491F4F5FA3F9761E39C46F63"><enum>(iv)</enum><text>standards for
compliance by persons subject to this title; and</text>
</clause><clause id="H8936C67B58414E3EB213B1299A02B8F5"><enum>(v)</enum><text>policies and
procedures for monitoring transfers of items controlled under this
title;</text>
</clause></subparagraph><subparagraph id="H18F7EC55A7CF49A69F3F05C4D8930372"><enum>(C)</enum><text>to receive
information and advice from any United States Government official regarding any
matter with respect to which the Committee has responsibilities; and</text>
</subparagraph><subparagraph id="H6ACDFBC6EA624EC3B8ACE6600D791C66"><enum>(D)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="HBDA5D775F3A949E7802BCA0D3E3A3D33"><enum>(2)</enum><header>Authority to
seek information</header><text>The Committee may, in carrying out its
functions, seek information and advice from experts who are not officers or
employees of the Federal Government.</text>
</paragraph><paragraph id="H521528BE3B964796856B153C9B0B7CFB"><enum>(3)</enum><header>Transmittal and
implementation of evaluations</header><text>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.</text>
</paragraph></subsection></section><section id="H476C8A82C9BC4268B758F10D9492197A"><enum>106.</enum><header>Control
lists</header><text display-inline="no-display-inline">The President shall,
through the Technology Transfer Policy Committee, to the maximum extent
possible, ensure that—</text>
<paragraph id="HB4BB9EB71A7E439E96A4B3DD02CD33D3"><enum>(1)</enum><text>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;</text>
</paragraph><paragraph id="H8456C297F5B642AF9A04392397C32351"><enum>(2)</enum><text>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;</text>
</paragraph><paragraph id="HD3D899A4A1E14C3EA7174716AAF73919"><enum>(3)</enum><text>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</text>
</paragraph><paragraph id="HE4FB3644F4524A43B1A5B2E4605E8DC3"><enum>(4)</enum><text>each such list is
published in a form that facilitates compliance with it, in particular by small
and medium-sized businesses and academic institutions.</text>
</paragraph></section><section id="HAC8F029DEC03404B885C9D0D4BFECA90"><enum>107.</enum><header>Licensing</header><text display-inline="no-display-inline">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—</text>
<paragraph id="H65DBF6230F4543AA8508DFDC71BD1931"><enum>(1)</enum><text>license
applications are considered and decisions made with the participation of
departments, agencies, and offices that have delegated functions under this
title; and</text>
</paragraph><paragraph id="HF6DCCCB1A44A469BABC4B53586AD0FF5"><enum>(2)</enum><text>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.</text>
</paragraph></section><section id="HC72F6619CD87463BA6AE03EBC0B8520E"><enum>108.</enum><header>Compliance
assistance</header>
<subsection id="HBA8FB76EC2D6452D8C54D101AC3A1BF6"><enum>(a)</enum><header>System for
seeking assistance</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="HD703E4146A3E4501AD343D9068898891"><enum>(b)</enum><header>Security
clearances</header><text display-inline="yes-display-inline">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.</text>
</subsection></section><section id="H8EEFCC19F8CF45AEAEF1EC597F352C07"><enum>109.</enum><header>Penalties</header>
<subsection id="H2AC14922ABCF4A18B20A932EB9432D69"><enum>(a)</enum><header>Unlawful
acts</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="H0CDE0F78CFE9473BB492FB91688103E3"><enum>(b)</enum><header>Criminal
Penalty</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="H4704D2C8B6004929AEA87A3D93D6297F"><enum>(c)</enum><header>Civil
penalties</header>
<paragraph id="HC685F2E067814511B59FFAB136818BAA"><enum>(1)</enum><header>Authority</header><text>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:</text>
<subparagraph id="HE5B314D946324206AED670CF02908051"><enum>(A)</enum><text>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.</text>
</subparagraph><subparagraph id="H0BDA3E6D43CB4FB48922159083EBDFD6"><enum>(B)</enum><text>Revocation of a
license issued under this title to the person.</text>
</subparagraph><subparagraph id="H85260305D02348539AD5894E658D602C"><enum>(C)</enum><text display-inline="yes-display-inline">A prohibition on the person’s ability to
transfer outside the United States any items, whether or not subject to
controls under this title.</text>
</subparagraph></paragraph><paragraph id="HC7CF8F150D444F8B8F8F7B46CACE0134"><enum>(2)</enum><header>Procedures</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="H0E7C37CEA7C14C9D822A21DF4C510B00"><enum>(3)</enum><header>Standards for
levels of civil penalty</header><text>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.</text>
</paragraph></subsection><subsection commented="no" id="HB387E6D7C4804224884200249308C03A"><enum>(d)</enum><header>Criminal
Forfeiture of Property Interest and Proceeds</header>
<paragraph commented="no" display-inline="no-display-inline" id="H4E2914BD87DE4F1BAAC760C2E3C6ECCF"><enum>(1)</enum><header>Forfeiture</header><text>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—</text>
<subparagraph commented="no" id="HAE825727257F40CBA387C49B52DF5949" indent="down1"><enum>(A)</enum><text>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;</text>
</subparagraph><subparagraph commented="no" id="H28218D76A7204E488A62809ABF9A93C7" indent="down1"><enum>(B)</enum><text>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</text>
</subparagraph><subparagraph commented="no" id="H034DD1B5BF5E4F7499CD5A153F69B257" indent="down1"><enum>(C)</enum><text>any of that person's property
constituting, or derived from, any proceeds obtained directly or indirectly as
a result of the violation.</text>
</subparagraph></paragraph><paragraph commented="no" id="HB4CA400112484507A1E13295BEE875CD" indent="down1"><enum>(2)</enum><header>Procedures</header><text>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.</text>
</paragraph></subsection><subsection commented="no" id="H012A04E353794F21BE33F56DFDB0E6AB"><enum>(e)</enum><header>Prior
Convictions</header>
<paragraph commented="no" display-inline="no-display-inline" id="HCFF9A1E36E4B4634AD4DC96BAF2BFB4A"><enum>(1)</enum><header>License
bar</header>
<subparagraph id="HA092A9E721064599A59F2668BA0AC678"><enum>(A)</enum><header>In
general</header><text>The President may—</text>
<clause id="H61ED86338E3F46BD8CB927E96752CB87"><enum>(i)</enum><text display-inline="yes-display-inline">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</text>
</clause><clause id="H1F3C5B7F78234881832523D8C5E8ACA4"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph><subparagraph id="H20165791DEC549C8BC645D670A48A0F4"><enum>(B)</enum><header>Violations</header><text>The
violations referred to in subparagraph (A) are any criminal violation
of—</text>
<clause id="H827D22BB44EA450CA8BB1C25D1D6F911"><enum>(i)</enum><text display-inline="yes-display-inline">this title (or any regulation, license, or
order issued under this title);</text>
</clause><clause id="HB9F208E669F64FA1AD9DDE13E4319EC3"><enum>(ii)</enum><text>any
regulation, license, or order issued under the International Emergency Economic
Powers Act;</text>
</clause><clause id="H08615D1F1E6D47FEBCB94FBEBF2B4340"><enum>(iii)</enum><text>section 793,
794, or 798 of title 18, United States Code;</text>
</clause><clause id="HB239641757764C90A40D981E5CC49A40"><enum>(iv)</enum><text>section 4(b) of
the Internal Security Act of 1950 (50 U.S.C. 783(b)); or</text>
</clause><clause id="HE6551D05E2834A7FAA86EF1F2A8CD4FF"><enum>(v)</enum><text>section 38 of the
Arms Export Control Act (22 U.S.C. 2778).</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="HE9E5553DDF0B415B9D421B7986D9F46D"><enum>(2)</enum><header>Application to
other parties</header><text display-inline="yes-display-inline">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).</text>
</paragraph></subsection><subsection commented="no" id="H5860E5A27264466B983E667B33BC428C"><enum>(f)</enum><header>Other
Authorities</header><text>Nothing in subsection (c), (d), or (e) limits—</text>
<paragraph commented="no" id="H7C29969EFB414AE3976F2188FA4CB3B3"><enum>(1)</enum><text>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;</text>
</paragraph><paragraph commented="no" id="H00629ED49AD34395B9479D43FC343972"><enum>(2)</enum><text>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</text>
</paragraph><paragraph commented="no" id="H3202712C91AB42199E0335B2F311D37B"><enum>(3)</enum><text>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)).</text>
</paragraph></subsection></section><section commented="no" display-inline="no-display-inline" id="H71CC54DBF3144EB499E3B571DA5C2652" section-type="subsequent-section"><enum>110.</enum><header>Enforcement</header>
<subsection id="HF94A386F9FF341208537ABE3A23812CE"><enum>(a)</enum><header>Authorities</header><text display-inline="yes-display-inline">In order to enforce this title, the
President may—</text>
<paragraph id="H947B5EEEC25E45B2A9FAF07E04D3E453"><enum>(1)</enum><text display-inline="yes-display-inline">issue regulations, orders, and
guidelines;</text>
</paragraph><paragraph id="H5F193ED91F4C47CA92DC242661AD4766"><enum>(2)</enum><text>require, inspect,
and obtain books, records, and any other information from any person subject to
the provisions of this title;</text>
</paragraph><paragraph id="H2E0FEFB1584746E083C8BE0E9FC396DA"><enum>(3)</enum><text display-inline="yes-display-inline">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;</text>
</paragraph><paragraph id="H0DB02C48AC844F55A79CF47FE025A88A"><enum>(4)</enum><text>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;</text>
</paragraph><paragraph id="HDACE4FEA594B4FE4BAF350A850E17E80"><enum>(5)</enum><text display-inline="yes-display-inline">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;</text>
</paragraph><paragraph id="H71BD5416CBD74FAD9B03FDF063230B97"><enum>(6)</enum><text>conduct prelicense
inspections and post-shipment verifications; and</text>
</paragraph><paragraph id="HB5929ED070A64232A747C775F8CE8008"><enum>(7)</enum><text>execute warrants
and make arrests.</text>
</paragraph></subsection><subsection commented="no" id="H3F4C49393CFF465B954F657B8C1AF5B2"><enum>(b)</enum><header>Enforcement of
subpoenas</header><text>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.</text>
</subsection><subsection commented="no" id="HD6A5125064B9412A8157EA19FEE6E2BF"><enum>(c)</enum><header>Best practices
guidelines</header>
<paragraph commented="no" id="H8CAF17CB33514C1FA72034046869A078"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The President, in
consultation with the Interagency Transfer Policy Committee established under
section 105, should publish and update <quote>best practices</quote> 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.</text>
</paragraph><paragraph commented="no" id="HD5D0E85F290A40A1A8CF20F349E48AE5"><enum>(2)</enum><header>Export
compliance program</header><text display-inline="yes-display-inline">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.</text>
</paragraph></subsection><subsection commented="no" id="H79136F0E72D849C9A55D659F2E28E9AB"><enum>(d)</enum><header>Reference to
enforcement</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection commented="no" id="H0FACBDA47C2A49F0B7DF99EA50DB9D9C"><enum>(e)</enum><header>Immunity</header><text>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.</text>
</subsection><subsection commented="no" id="H868D205676BC4E8DAE0C22BC3EA14EDF"><enum>(f)</enum><header>Confidentiality
of information</header>
<paragraph commented="no" id="H7D2478BA285B422184142BC5CB2A6E90"><enum>(1)</enum><header>Exemptions from
disclosure</header>
<subparagraph id="HD94C6D0B37E748828468656EC0A7CA3F"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</subparagraph><subparagraph id="HE9BF53A1AB83443F9F67D03DB781363A"><enum>(B)</enum><header>Information
described</header><text>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—</text>
<clause id="HF89FCE37C1F3462FBDC56FB50A67F7CD"><enum>(i)</enum><text>the
license application, license or other transfer authorization itself,</text>
</clause><clause id="H239A234E03B542C0937202C67A0B4871"><enum>(ii)</enum><text>classification
requests,</text>
</clause><clause id="H8E75C8FCA5DC4F0F82FB70333BC0659F"><enum>(iii)</enum><text>information or
evidence obtained in the course of any investigation, and</text>
</clause><clause id="HC29A530F8E194B1F8014301A330E651A"><enum>(iv)</enum><text>information
obtained or furnished in connection with any international agreement, treaty,
or other obligation.</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="H3764B683917E4609B3CB136A8775EBAF"><enum>(2)</enum><header>Information to
the congress and gao</header>
<subparagraph commented="no" id="H4298152050014BA9B041DAEBB4A3EE9F"><enum>(A)</enum><header>In
general</header><text>Nothing in this section shall be construed as authorizing
the withholding of information from the Congress or from the Government
Accountability Office.</text>
</subparagraph><subparagraph commented="no" id="HAE68559A07164D57A53210FBD1A2BA3F"><enum>(B)</enum><header>Availability to
the congress</header>
<clause commented="no" id="H7F06E96623E047A7A6E3F7F0CDC8C0EE"><enum>(i)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</clause><clause commented="no" id="H648E19D2BE7143BFA21FFCBDD512A825"><enum>(ii)</enum><header>Prohibition on
further disclosure</header><text display-inline="yes-display-inline">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.</text>
</clause></subparagraph><subparagraph commented="no" id="HCE45D33AC411448BB2980B0A80E16AD5"><enum>(C)</enum><header>Availability to
gao</header>
<clause commented="no" id="HCC655352D3E04BDC9D467AF086EDDC66"><enum>(i)</enum><header>In
general</header><text display-inline="yes-display-inline">Information described
in clause (i) of subparagraph (B) shall be subject to the limitations contained
in section 716 of title 31, United States Code.</text>
</clause><clause commented="no" id="H2B00166F9AD64ECE877F11B3D803283B"><enum>(ii)</enum><header>Prohibition on
further disclosure</header><text>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.</text>
</clause></subparagraph></paragraph><paragraph commented="no" id="H951F36E760394553B9C4BC26F8128FCB"><enum>(3)</enum><header>Information
sharing</header>
<subparagraph commented="no" id="H939A643D2BAD4925B2A73ADC210FD601"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</subparagraph><subparagraph commented="no" id="H0C4E346A479E45439F84E7ECF2458FC6"><enum>(B)</enum><header>Exceptions</header><text>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.</text>
</subparagraph><subparagraph commented="no" id="H7B4636DCA6F047B299D9528942614A50"><enum>(C)</enum><header>Exchange of
information</header><text display-inline="yes-display-inline">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—</text>
<clause commented="no" id="H8584839066D94828A94FFC422F548092"><enum>(i)</enum><text>exchange any
licensing and enforcement information with one another that is necessary to
facilitate enforcement efforts under this section; and</text>
</clause><clause commented="no" id="H53F13D3255C24F7A897899B6C32D7D13"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph><subparagraph id="H6CF50323D06C409FABB55CF2902A4C13"><enum>(D)</enum><header>Information
sharing with federal agencies</header><text>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.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="H80C5D1C6FC8F4EE2A61A6DCC5AD9C1F8"><enum>(g)</enum><header>Reporting
requirements</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection commented="no" id="HF2AF19AB544A4B94A72C855AFFA622A0"><enum>(h)</enum><header>Civil
Forfeiture</header>
<paragraph commented="no" id="HC0E331167BF447858844C88A87069F5F"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph commented="no" id="H7A2FA1FBD76C495D872F22C8980C51D2"><enum>(2)</enum><header>Procedures</header><text>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.</text>
</paragraph></subsection></section><section id="H20F5485791F348B9B80B0A77E018F88D"><enum>111.</enum><header>Administrative
procedure</header><text display-inline="no-display-inline">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.</text>
</section><section id="H6D26FFF08538417F88D1257AD619F57C"><enum>112.</enum><header>Annual report
to Congress</header>
<subsection id="H846D2AFC794A40B08FDFD45FF8DE0FA8"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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—</text>
<paragraph id="HC5F0F9F8B4E64F49AC4ABEE8A7FCEBF3"><enum>(1)</enum><text>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;</text>
</paragraph><paragraph id="HB057D101895D4657A2BFCAA7B0694CEE"><enum>(2)</enum><text>the impact of such
controls on the scientific and technological leadership of the United States;
and</text>
</paragraph><paragraph id="H297E3DB09C394F928115BBD03B5DDC68"><enum>(3)</enum><text>the consistency
with such controls of export controls imposed by other countries.</text>
</paragraph></subsection><subsection id="H10A1FEEA05C24E97B0D8D8FA6A53501A"><enum>(b)</enum><header>Submission in
classified</header><text>The report under subsection (a) may be submitted in
classified form, in whole or in part, if necessary.</text>
</subsection></section><section id="H766D3981493D492B8B214BD5194E407B"><enum>113.</enum><header>Repeal</header><text display-inline="no-display-inline">The Export Administration Act of 1979 (50
U.S.C. App. 2401 et seq.) is repealed.</text>
</section><section id="H479EEE909C47444DBBA755473BDB1373"><enum>114.</enum><header>Effect on other
Acts</header>
<subsection display-inline="no-display-inline" id="HD825031697A546378D3AB8734946E780"><enum>(a)</enum><header>In
General</header><text>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.</text>
</subsection><subsection id="HEA719A322AB440B3AF075731CF90BD9B"><enum>(b)</enum><header>Coordination of
Controls</header><text>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).</text>
</subsection><subsection id="H2ABF097F07AB491691F0956F207F0075"><enum>(c)</enum><header>Civil Aircraft
Equipment</header>
<paragraph id="HB8A6DC759DE34D7B9610953FA55D72F4"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="H4B45C54C8BC342F3AB37D46F72CEC32B"><enum>(2)</enum><header>Products
described</header><text>A product described in this paragraph is a product
that—</text>
<subparagraph id="H1B35FC618B1D4C97BF347FA9CA9C33D3"><enum>(A)</enum><text display-inline="yes-display-inline">is standard equipment certified by the
Federal Aviation Administration, in civil aircraft and is an integral part of
such aircraft; and</text>
</subparagraph><subparagraph id="H31C8B9C218F94865A13B392995D40F68"><enum>(B)</enum><text>is to be
transferred to a country other than a country to which transfers of items are
controlled under this title.</text>
</subparagraph></paragraph></subsection><subsection id="H1DB4A9F0495945BE91453EE6A6B0812B"><enum>(d)</enum><header>Nonproliferation
Controls</header><text>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.</text>
</subsection></section><section id="HD60EAE1434F2468481EF8CC8A075A780"><enum>115.</enum><header>Transition
provisions</header>
<subsection id="H4EF796FEDC5842EBBF7D512E78E40E93"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="H297E2AEBD50E4AFB82ABD234FF1BE0DE"><enum>(b)</enum><header>Administrative
and judicial proceedings</header><text>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.</text>
</subsection><subsection id="H0CD33FFC6B8E49C89CA8CFE2045F095D"><enum>(c)</enum><header>Certain
determinations and references</header>
<paragraph id="H5A95A8C90F744078BE2B8CA87728FC4C"><enum>(1)</enum><header>State sponsors
of terrorism</header><text>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.</text>
</paragraph><paragraph id="H81355150797C4A7FBC91657AD45C9D76"><enum>(2)</enum><header>Reference</header><text display-inline="yes-display-inline">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.</text>
</paragraph></subsection></section><enum>II</enum><header>Antiboycott
Provisions</header>
<section id="H0F1E590F6FDF4A84984EB5C69579DD5F"><enum>201.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote>Antiboycott Act</quote>.</text>
</section><section id="H31AFC43C877D42A7B2D18EB60F2EDA92"><enum>202.</enum><header>Policy</header>
<subsection id="H6BAC691538F74D23ADDC29B1F9AECD1A"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">It is the policy of
the United States—</text>
<paragraph id="H98143ADA1A2D4A2895FA39719CBB5DC6"><enum>(1)</enum><text>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;</text>
</paragraph><paragraph id="H6AC59782F9AE4149889E7460AB0E1395"><enum>(2)</enum><text>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</text>
</paragraph><paragraph id="HAB49DF6EC6C745E78AF4820F96B669BA"><enum>(3)</enum><text>to foster
international cooperation and the development of international rules and
institutions to assure reasonable access to world supplies.</text>
</paragraph></subsection><subsection id="H44A4FA260953497FA739C98A634C2E37"><enum>(b)</enum><header>Prohibitions and
exceptions</header>
<paragraph id="H9268091A9D5F4BEA9FC5109B5606DBC3"><enum>(1)</enum><header>Prohibitions</header><text>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:</text>
<subparagraph id="HA238F1F9ED74483F9B9B1AB3F531CC39"><enum>(A)</enum><text>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).</text>
</subparagraph><subparagraph id="HCFD45FBE52244546B28E46F601278F4B"><enum>(B)</enum><text>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.</text>
</subparagraph><subparagraph id="HC3691CCAE4D744A3B5FCC3A70F753209"><enum>(C)</enum><text>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.</text>
</subparagraph><subparagraph id="HD993422A743E4F27AAAE0297388CF20E"><enum>(D)</enum><text>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.</text>
</subparagraph><subparagraph id="H8107D4FE170D4E959F21D72D3DA0C6D6"><enum>(E)</enum><text>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.</text>
</subparagraph><subparagraph id="HF8359413508A4DA794A467A4D998B690"><enum>(F)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="H635A12B9A41E4E7486CB799CA1D09C44"><enum>(2)</enum><header>Exceptions</header><text>Regulations
issued pursuant to paragraph (1) shall provide exceptions for—</text>
<subparagraph id="HC2A9A4F1A288447EAFFFFB1C6E3E86D6"><enum>(A)</enum><text>compliance, or
agreement to comply, with requirements—</text>
<clause id="H3CF235DD676B485DA0D00F326BE36247"><enum>(i)</enum><text>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</text>
</clause><clause id="H6B746E1F519C4D9CA3FFACEAE2098C7A"><enum>(ii)</enum><text>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;</text>
</clause></subparagraph><subparagraph id="H1D71D4BA045A46FAB53147310947F848"><enum>(B)</enum><text>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;</text>
</subparagraph><subparagraph id="HC6868C23FE8646BE92DD6426E4E75EEC"><enum>(C)</enum><text>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;</text>
</subparagraph><subparagraph id="H883B24B4C2844DCC9DD9E70662AFE2A8"><enum>(D)</enum><text>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;</text>
</subparagraph><subparagraph id="HA79D445FB7E74C619CD0586AE77A9116"><enum>(E)</enum><text>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</text>
</subparagraph><subparagraph id="HA5F9B03D532043DB8508D38912B5546E"><enum>(F)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="H70CA5B040A0F4608A76D8C10B10A885C"><enum>(3)</enum><header>Limitation on
exceptions</header><text>Regulations issued pursuant to paragraphs (2)(C) and
(2)(F) shall not provide exceptions from paragraphs (1)(B) and (1)(C).</text>
</paragraph><paragraph id="HAE4265BF59BA4882BAAD7C54094C9283"><enum>(4)</enum><header>Antitrust and
civil rights laws not affected</header><text>Nothing in this subsection may be
construed to supersede or limit the operation of the antitrust or civil rights
laws of the United States.</text>
</paragraph><paragraph id="HB8A77AE10B584017A51BFE3919D8665C"><enum>(5)</enum><header>Evasion</header><text>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.</text>
</paragraph></subsection><subsection id="H675580E299B148E2930D719B353B90D1"><enum>(c)</enum><header>Foreign policy
controls</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="H209F926AC4DA4625B51CA86E9FF36E2D"><enum>(d)</enum><header>Reports</header><text display-inline="yes-display-inline">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).</text>
</subsection><subsection id="HF4233E6E32474D929D6B87ABD5E252B1"><enum>(e)</enum><header>Preemption</header><text>The
provisions of this section and the regulations issued under this section shall
preempt any law, rule, or regulation that—</text>
<paragraph id="H1AC9F64DE8A64632B150FB39AD99EAAE"><enum>(1)</enum><text>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</text>
</paragraph><paragraph id="H11A7F6F5AE7844B1962720B3FC6ACBF2"><enum>(2)</enum><text>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.</text>
</paragraph></subsection></section><section id="HA7704E7DB2704351B772862D78533952"><enum>203.</enum><header>Enforcement</header>
<subsection id="HA00F1551D12E4D7A8B8B54F953982272"><enum>(a)</enum><header>Civil
penalties</header><text display-inline="yes-display-inline">The President may
impose the following civil penalties on a person who violates section 202 or
any regulation issued under this section:</text>
<paragraph display-inline="no-display-inline" id="H18F4EE7BB8E144EE80C345E10A683007"><enum>(1)</enum><text>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.</text>
</paragraph><paragraph id="HEE66D5520AA441249D7BE2AE8B5009CC"><enum>(2)</enum><text>Revocation of a
license issued under title I to the person.</text>
</paragraph><paragraph id="H436CBDA200974727996F290EF9CD6BA7"><enum>(3)</enum><text>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.</text>
</paragraph></subsection><subsection id="HE8340A4B1C20439EA92AF7E135A382AD"><enum>(b)</enum><header>Procedures</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection commented="no" id="H0A2765879BDD4C938C6520821564D570"><enum>(c)</enum><header>Standards for
levels of civil penalty</header><text>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.</text>
</subsection></section><enum>III</enum><header>Sanctions
Regarding Missile Proliferation and Chemical and Biological Weapons
Proliferation</header>
<section id="HA282F4DC11724AC99C2D088C322A319E"><enum>301.</enum><header>Missile
proliferation control violations</header>
<subsection display-inline="no-display-inline" id="H23A9B52609E54B7580642DB889C00B80"><enum>(a)</enum><header>Violations by
United States Persons</header>
<paragraph id="HD2115A5BC3B941EE9937DDCD864C39F1"><enum>(1)</enum><header>Sanctions</header>
<subparagraph display-inline="no-display-inline" id="H8454B01EF87F4BC3B619B6C18030AC24"><enum>(A)</enum><header>Sanctionable
activity</header><text display-inline="yes-display-inline">The President shall
impose the applicable sanctions described in subparagraph (B) if the President
determines that a United States person knowingly—</text>
<clause id="H1360A76CEB3743D5AD1790DAA43657CF"><enum>(i)</enum><text>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,</text>
</clause><clause id="H54E134D0CDE042BEA5A6815BCB88D12C"><enum>(ii)</enum><text>conspires to or
attempts to engage in such export, transfer, or trade, or</text>
</clause><clause id="HFF4EEC68270342DF9F9F5486B75493B1"><enum>(iii)</enum><text>facilitates such
export, transfer, or trade by any other person.</text>
</clause></subparagraph><subparagraph id="HB913029DD284440D83298CCDCF49E574"><enum>(B)</enum><header>Sanctions</header><text>The
sanctions that apply to a United States person under subparagraph (A) are the
following:</text>
<clause id="HC58142AFBB9141A29A77A77690BC0257"><enum>(i)</enum><text>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.</text>
</clause><clause id="HF68EEE7C076C4132A24DF5441D607714"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph></paragraph><paragraph id="H766F9DEE43984D409D977692ABF6A4AB"><enum>(2)</enum><header>Discretionary
sanctions</header><text>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.</text>
</paragraph><paragraph id="HF50714BD0317435F836B3AE7D1914142"><enum>(3)</enum><header>Waiver</header><text>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—</text>
<subparagraph id="H6428FC8CE8F64A9494AAE602F5D6E98E"><enum>(A)</enum><text>the product or
service is essential to the national security of the United States; and</text>
</subparagraph><subparagraph id="HF252A9907546444CA738FADBA842D5BC"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph></subsection><subsection id="HF209335C8AD343C98D321C5E7E2AFB8B"><enum>(b)</enum><header>Transfers of
Missile Equipment or Technology by Foreign Persons</header>
<paragraph id="H4D2FF1177C1C40AA979881069AC54164"><enum>(1)</enum><header>Sanctions</header>
<subparagraph display-inline="no-display-inline" id="HBF74BF604AD347BDB1803972FE6943E2"><enum>(A)</enum><header>Sanctionable
activity</header><text display-inline="yes-display-inline">Subject to
paragraphs (3) through (7), the President shall impose the applicable sanctions
under subparagraph (B) on a foreign person if the President—</text>
<clause id="H3A4B6E412E2F4EDD9695EA95A8CD749E"><enum>(i)</enum><text>determines that a
foreign person knowingly—</text>
<subclause id="H106BD4163C7C4B578AA0A60E5D4A59DF"><enum>(I)</enum><text>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;</text>
</subclause><subclause id="H09302F6EFA534047A952E5A4BDA06215"><enum>(II)</enum><text>conspires to or
attempts to engage in such export, transfer, or trade; or</text>
</subclause><subclause id="H94476D37667845CAA1EDB83291ACBA3B"><enum>(III)</enum><text>facilitates such
export, transfer, or trade by any other person; or</text>
</subclause></clause><clause id="H62A9FCE5CB5E41CDBDBE89754342B04C"><enum>(ii)</enum><text display-inline="yes-display-inline">has made a determination with respect to
the foreign person under section 73(a) of the Arms Export Control Act.</text>
</clause></subparagraph><subparagraph id="HC8746CDADB774E63B303B5E7C4BB263C"><enum>(B)</enum><header>Sanctions</header><text>The
sanctions that apply to a foreign person under subparagraph (A) are the
following:</text>
<clause id="HA9089D560DF541FDADA551B600B508B3"><enum>(i)</enum><text>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.</text>
</clause><clause id="HB13825506B34499F9C4450E05EF1F014"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph></paragraph><paragraph id="H8120907C9EFC4DB383EBA7B013AE0332"><enum>(2)</enum><header>Inapplicability
with respect to mtcr adherents</header><text>Paragraph (1) does not apply with
respect to—</text>
<subparagraph id="H753ABEB6211C4072AB81FA8576EF5FEE"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="H7B300340480E4A0C8A378FEE52498641"><enum>(B)</enum><text>any export,
transfer, or trade of an item to an end user in a country that is an MTCR
adherent.</text>
</subparagraph></paragraph><paragraph id="HCDEBC4A4875F44E6A92F9302C88993E7"><enum>(3)</enum><header>Effect of
enforcement actions by mtcr adherents</header><text>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.</text>
</paragraph><paragraph id="HE34B3DD8E2AA41A082B50686C6DCB297"><enum>(4)</enum><header>Advisory
opinions</header><text>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.</text>
</paragraph><paragraph id="H9BA92E8B503B4BE39E011A74BDE6F671"><enum>(5)</enum><header>Waiver and
report to congress</header>
<subparagraph display-inline="no-display-inline" id="HCDAC197689964DF4AFB5572AADBA82C7"><enum>(A)</enum><header>Waiver
authority</header><text>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.</text>
</subparagraph><subparagraph id="HBA2D88C05741477ABF1541E5B478A74E"><enum>(B)</enum><header>Notification and
report to Congress</header><text>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.</text>
</subparagraph></paragraph><paragraph id="HB925CD3EDA074981B6F19CA7783CB1F1"><enum>(6)</enum><header>Additional
waiver</header><text>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—</text>
<subparagraph id="HBEBAEBF3CA5948D28493913229D040C7"><enum>(A)</enum><text>the product or
service is essential to the national security of the United States; and</text>
</subparagraph><subparagraph id="H5C2FD898C3BD484897A68BDF0FEB88B5"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="H84B23A2CF6B24F97893DE868ABA674A1"><enum>(7)</enum><header>Exceptions</header><text>The
President shall not apply the sanction under this subsection prohibiting the
importation of the products of a foreign person—</text>
<subparagraph id="H2353308BBA224884826FE6E79267FE7A"><enum>(A)</enum><text>in the case of
procurement of defense articles or defense services—</text>
<clause id="H44058EF7647A41CAAC656B029080821C"><enum>(i)</enum><text>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;</text>
</clause><clause id="H21D46A3372444C789C2E396C45927A01"><enum>(ii)</enum><text>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</text>
</clause><clause id="H1E57996C625D4ED2B7674D4DEB867B92"><enum>(iii)</enum><text>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;</text>
</clause></subparagraph><subparagraph id="H6E56C17FE7E54A6C86728BC4D9CC2B29"><enum>(B)</enum><text>to products or
services provided under contracts entered into before the date on which the
President publishes his intention to impose the sanctions; or</text>
</subparagraph><subparagraph id="H9730049ED70646F3A29387673C238F6F"><enum>(C)</enum><text>to—</text>
<clause id="HD353804D93BE43B2B0660B0178FA676A"><enum>(i)</enum><text>spare
parts,</text>
</clause><clause id="H959A830496154285ADB4CF67C8EB42CE"><enum>(ii)</enum><text>component parts,
but not finished products, essential to United States products or
production,</text>
</clause><clause id="H5BB66F95C77E40698EF5E2C96AE29240"><enum>(iii)</enum><text>routine services
and maintenance of products, to the extent that alternative sources are not
readily or reasonably available, or</text>
</clause><clause id="H654DE793812E4670897CBEDB1E6EA945"><enum>(iv)</enum><text>information and
technology essential to United States products or production.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H00CAEFB372624290A58B231AE8FF7704"><enum>(c)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph commented="no" id="HA4E398B19FB142B49216CDE7D4491E8A"><enum>(1)</enum><header>Defense
articles; defense services</header><text>The terms <term>defense
articles</term> and <term>defense services</term> mean those items on the
United States Munitions List or are otherwise controlled under the Arms Export
Control Act.</text>
</paragraph><paragraph id="H31488B648C694742AC3B0CC276F172CD"><enum>(2)</enum><header>Missile</header><text>The
term <term>missile</term> 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.</text>
</paragraph><paragraph id="HC4AF44649D9B4DDBBD16DF9A8DCC8DD7"><enum>(3)</enum><header>Missile
technology control regime; mtcr</header><text>The term <term>Missile Technology
Control Regime</term> or <term>MTCR</term> 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.</text>
</paragraph><paragraph id="H64E279CF79514E35BDF46D2C54A93457"><enum>(4)</enum><header>MTCR
adherent</header><text>The term <term>MTCR adherent</term> 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.</text>
</paragraph><paragraph id="HB663187CE8F445DBAAD52B64F84299D8"><enum>(5)</enum><header>MTCR
annex</header><text>The term <term>MTCR Annex</term> means the Guidelines and
Equipment and Technology Annex of the MTCR, and any amendments thereto.</text>
</paragraph><paragraph id="HBF48E12EDEB842E9AA654F75DD094D7A"><enum>(6)</enum><header>Missile
equipment or technology; mtcr equipment or technology</header><text>The terms
<term>missile equipment or technology</term> and <term>MTCR equipment or
technology</term> mean those items listed in category I or category II of the
MTCR Annex.</text>
</paragraph><paragraph id="H25B4599C84E245C1A027307FEDFAA6F4"><enum>(7)</enum><header>Foreign
person</header><text>The term <term>foreign person</term> means any person
other than a United States person.</text>
</paragraph><paragraph id="HCD2DE03F40114D8A8D99148884A4F498"><enum>(8)</enum><header>Person</header><text>The
term <term>person</term> 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.</text>
</paragraph><paragraph id="H8ED392FBDC1F45CC84D02A781EFAC677"><enum>(9)</enum><header>Otherwise
engaged in the trade of</header><text>The term <term>otherwise engaged in the
trade of</term> 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.</text>
</paragraph></subsection></section><section id="HCA7FBB351C0D4328B3AA85DFB0415AB2"><enum>302.</enum><header>Chemical and
biological weapons proliferation sanctions</header>
<subsection display-inline="no-display-inline" id="H24E0F2A3E86145D797EC3576719B1EB0"><enum>(a)</enum><header>Imposition of
Sanctions</header>
<paragraph id="HD34E4B390C8D4A54B72706BC379265E4"><enum>(1)</enum><header>Determination by
the president</header><text>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—</text>
<subparagraph id="H553E544204E74344AF354ABEB76E6317"><enum>(A)</enum><text>through the export
from the United States of any item that is subject to the jurisdiction of the
United States under this title, or</text>
</subparagraph><subparagraph id="H50B6B13EAD234CCABD3AA8FE21F2469E"><enum>(B)</enum><text>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,</text>
</subparagraph><continuation-text continuation-text-level="paragraph">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.</continuation-text></paragraph><paragraph id="H1DB4E09D2A474234859E147A9AEBC15D"><enum>(2)</enum><header>Countries,
projects, or entities receiving assistance</header><text>Paragraph (1) applies
in the case of—</text>
<subparagraph id="H7482BF79CF9D411FA1C970E66868363B"><enum>(A)</enum><text>any foreign
country that the President determines has, at any time after January 1,
1980—</text>
<clause id="H917990F61C854A489407CE7B4ED267A8"><enum>(i)</enum><text>used
chemical or biological weapons in violation of international law;</text>
</clause><clause id="HD732849982FD41FF9A3B44F76092B77A"><enum>(ii)</enum><text>used lethal
chemical or biological weapons against its own nationals; or</text>
</clause><clause id="H5F44411D721B437AB3CE22E8004B0F95"><enum>(iii)</enum><text>made substantial
preparations to engage in the activities described in clause (i) or
(ii);</text>
</clause></subparagraph><subparagraph id="HF03A16CB864547879339B436CA5A4B32"><enum>(B)</enum><text>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</text>
</subparagraph><subparagraph id="H1FEB6361B89D44B2A61648938D46A5FB"><enum>(C)</enum><text>any other foreign
country, project, or entity designated by the President for purposes of this
section.</text>
</subparagraph></paragraph><paragraph id="HB79507AFA4FD46CEBD8081E7688A769E"><enum>(3)</enum><header>Persons against
which sanctions are to be imposed</header><text>A sanction shall be imposed
pursuant to paragraph (1) on—</text>
<subparagraph id="H5023B1D67D83472E924CD9CCD77EC395"><enum>(A)</enum><text>the foreign person
with respect to which the President makes the determination described in that
paragraph;</text>
</subparagraph><subparagraph id="H359E9FA26244413F9FAE94AE823660B9"><enum>(B)</enum><text>any successor
entity to that foreign person; and</text>
</subparagraph><subparagraph commented="no" id="H49E504B2B08A475D932DDFED394952BF"><enum>(C)</enum><text>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.</text>
</subparagraph></paragraph></subsection><subsection id="H9FD8DB3E3F7A4B54AE99022CED80AE08"><enum>(b)</enum><header>Consultations
With and Actions by Foreign Government of Jurisdiction</header>
<paragraph id="H3451506FCA8B444FAAAE56FAEBBEE1D4"><enum>(1)</enum><header>Consultations</header><text>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.</text>
</paragraph><paragraph id="H4A6EFACFDEF24D178D365B2C41BE44D3"><enum>(2)</enum><header>Actions by
government of jurisdiction</header><text>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.</text>
</paragraph><paragraph id="H88ADBF7CF51844BD94159A73CB8C21BE"><enum>(3)</enum><header>Report to
congress</header><text>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.</text>
</paragraph></subsection><subsection id="H6B02C6AFBDAC4488A84470DB27FEED70"><enum>(c)</enum><header>Sanction</header>
<paragraph id="H091B95BCC76D4A15B9F7C5E1D8BB2B32"><enum>(1)</enum><header>Description of
sanction</header><text>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).</text>
</paragraph><paragraph id="HDC3043B2A30B43678D90E86D1A3366D9"><enum>(2)</enum><header>Exceptions</header><text>The
President shall not be required to apply or maintain a sanction under this
section—</text>
<subparagraph id="HB6E6320016D34160BC0ED642883C2CC7"><enum>(A)</enum><text>in the case of
procurement of defense articles or defense services—</text>
<clause id="H18781B5894854F26842C660A4319795B"><enum>(i)</enum><text>under existing
contracts or subcontracts, including the exercise of options for production
quantities to satisfy United States operational military requirements;</text>
</clause><clause id="HC9F438CFAC474C44A35E6659E7D22F1E"><enum>(ii)</enum><text>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</text>
</clause><clause id="H10969015BF51438395D01A40838FA555"><enum>(iii)</enum><text>if
the President determines that such articles or services are essential to the
national security under defense coproduction agreements;</text>
</clause></subparagraph><subparagraph id="H872D1E97540D4286BF0A75004384810A"><enum>(B)</enum><text>to products or
services provided under contracts entered into before the date on which the
President publishes his intention to impose sanctions;</text>
</subparagraph><subparagraph id="HD71D179A523C407F9C0AD830A0F0E363"><enum>(C)</enum><text>to—</text>
<clause id="H6041F287328540F7919064FF1706F23A"><enum>(i)</enum><text>spare
parts,</text>
</clause><clause id="HCC9CED033F9B46608BED9115B94C6732"><enum>(ii)</enum><text>component parts,
but not finished products, essential to United States products or production,
or</text>
</clause><clause id="H45330E9DA1C34694B87D70702410C58B"><enum>(iii)</enum><text>routine
servicing and maintenance of products, to the extent that alternative sources
are not readily or reasonably available;</text>
</clause></subparagraph><subparagraph id="H62707FCF58964A4290AD62F2C1CE602C"><enum>(D)</enum><text>to information and
technology essential to United States products or production; or</text>
</subparagraph><subparagraph id="H5544A345FC28433087F9CEC91BA327AB"><enum>(E)</enum><text>to medical or
other humanitarian items.</text>
</subparagraph></paragraph></subsection><subsection id="H36ABED6EE59147BBAE9ACF335C593D51"><enum>(d)</enum><header>Termination of
Sanctions</header><text>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.</text>
</subsection><subsection id="H1A91503F4E5B4DE0B5ECE39ADFDC2E12"><enum>(e)</enum><header>Waiver</header>
<paragraph id="H0762E7A638A548B29FDB1E180B154667"><enum>(1)</enum><header>Criterion for
waiver</header><text>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.</text>
</paragraph><paragraph id="H90EA6C08254B47E8A79395DFE3F5D3B0"><enum>(2)</enum><header>Notification of
and report to congress</header><text>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.</text>
</paragraph></subsection><subsection id="H1E5ECAFFA517466594135D9F4E951362"><enum>(f)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph commented="no" display-inline="no-display-inline" id="H1881CAF9E948412BB2880336526A2523"><enum>(1)</enum><header>Defense
articles; defense services</header><text>The terms <term>defense
articles</term> and <term>defense services</term> mean those items on the
United States Munitions List or are otherwise controlled under the Arms Export
Control Act.</text>
</paragraph><paragraph id="HD8B3C2E53455493AAEC402D9522C35CE"><enum>(2)</enum><header>Foreign
person</header><text>The term <term>foreign person</term> means—</text>
<subparagraph id="HED32B475EF984638A82571F503016DFF"><enum>(A)</enum><text>an individual who
is not a citizen of the United States or an alien admitted for permanent
residence to the United States; or</text>
</subparagraph><subparagraph id="H457DA509B6C34D76BD9E717D64A072CF"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="H3AC645ECDCA340CDB01516C16EC3DF19"><enum>(3)</enum><header>Parent,
subsidiary, affiliate</header><text>An entity is—</text>
<subparagraph id="H7781F362592B425D92B44DA9AB2BBDC4"><enum>(A)</enum><text>a
<quote>parent</quote> of a foreign person if that entity owns or controls that
foreign person;</text>
</subparagraph><subparagraph id="H784789E4C65343DEAED545D82CA20C44"><enum>(B)</enum><text>a
<quote>subsidiary</quote> of a foreign person if that entity is owned or
controlled by that foreign person; and</text>
</subparagraph><subparagraph id="H9D266B8670A14B4BAD85AF584ACF6A9F"><enum>(C)</enum><text>and
<quote>affiliate</quote> of a foreign person if the entity and the foreign
person are under common ownership or control by a third entity.</text>
</subparagraph></paragraph></subsection></section>