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<bill bill-stage="Introduced-in-House" dms-id="H9D24F49A770F410097B5112CB1079843" public-private="public" bill-type="olc"> 
<form> 
<distribution-code display="yes">I</distribution-code> 
<congress>112th CONGRESS</congress> <session>2d Session</session> 
<legis-num>H. R. 6724</legis-num> 
<current-chamber>IN THE HOUSE OF REPRESENTATIVES</current-chamber> 
<action> 
<action-date date="20121231">December 31, 2012</action-date> 
<action-desc><sponsor name-id="K000376">Mr. Kelly</sponsor> introduced the following bill; which was referred to the <committee-name committee-id="HFA00">Committee on Foreign Affairs</committee-name></action-desc> 
</action> 
<legis-type>A BILL</legis-type> 
<official-title>To reform United States export control restrictions relating to commercially-available automotive products and technologies, and for other purposes.</official-title> 
</form> 
<legis-body id="HAAE7CDB67BB24084879DBA7229DBC1B5" style="OLC"> 
<section id="HE7416BB858954FC5854259E0BB40EB40" section-type="section-one"><enum>1.</enum><header>Short title</header><text display-inline="no-display-inline">This Act may be cited as the <quote>Commercial Automotive Products Export Reform Act of 2012</quote>.</text></section> 
<section id="H35FF16E8B3C3402597EBF7954FFE0CE0"><enum>2.</enum><header>Findings</header><text display-inline="no-display-inline">Congress finds the following:</text> 
<paragraph id="H743003E7E154448A9B9EEB12592C515F"><enum>(1)</enum><text display-inline="yes-display-inline">The economic and national security interests of the United States are enhanced when—</text> 
<subparagraph id="H4337F54FE630470AB6206BFE9201E712"><enum>(A)</enum><text>the United States military has affordable and timely access to commercially-available automotive products and technologies, including products and technologies relating to safety, vehicle handling, and fuel efficiency; and</text></subparagraph> 
<subparagraph id="H4CFC26F117494E1F9A1B512F28E29F26"><enum>(B)</enum><text>companies doing business in the United States can freely export commercially-available automotive products and technologies that would not make a significant contribution to the military potential of other countries, except to countries, organizations, and individuals that are subject to United States trade sanctions.</text></subparagraph></paragraph> 
<paragraph id="HD157ABE8F74443EBAF75052F38572D41"><enum>(2)</enum><text>The economic and national security interests of the United States are not advanced by export control regulations that restrict the United States military’s access to commercially-available automotive products and technologies that either—</text> 
<subparagraph id="H485AB63F4A1A4E3F9A00EEB75F6CA5F2"><enum>(A)</enum><text>are widely available for use on non-military automotive vehicles; or</text></subparagraph> 
<subparagraph id="H1D0099157ED540ABA9C20DB084203FD3"><enum>(B)</enum><text>would not make a significant contribution to the military potential of other countries.</text></subparagraph></paragraph> 
<paragraph id="H555F343AB76144C58A3DFCA7FBEF064A"><enum>(3)</enum><text>Current and proposed United States export control regulations result in unnecessary restrictions on commercially-available automotive products and technologies, including—</text> 
<subparagraph id="H58878A373C424B19857E05B0690AE85F"><enum>(A)</enum><text>the need to obtain a license from the Department of State or Department of Commerce before exporting commercially-available automotive products and technologies if modified even in insignificant ways for use on a military vehicle; and</text></subparagraph> 
<subparagraph id="H4F60A5FE0A224B1EA4462FABAB0F4FB0"><enum>(B)</enum><text>the need to obtain a license from the Department of State or Department of Commerce before placing the specifications for such products on a computer system to which a foreign national worker has access.</text></subparagraph></paragraph> 
<paragraph id="H903FEC13841D4ABF9666296290160B58"><enum>(4)</enum><text>None of the multilateral export control regimes of which the Unites States is a party requires the export restrictions that currently apply to commercially-available automotive products and technologies.</text></paragraph> 
<paragraph id="HB2D93D6031914578870CAC850A8FF562"><enum>(5)</enum><text>The unnecessary restrictions described in this section limit the ability of the United States military to procure commercially-available automotive products and technologies in a timely and affordable manner, adversely affect the safety and fuel economy of United States military vehicles, put the United States military at a comparative disadvantage against its adversaries, create barriers to job creation in the United States, burden taxpayers unnecessarily with increased costs for military vehicles and related parts and components, place unnecessary regulatory burdens on United States companies, and waste valuable licensing and enforcement resources on controlling the exportation of militarily insignificant products and technologies.</text></paragraph></section> 
<section id="HD585B4852F4F4182B69407DE43CF0797"><enum>3.</enum><header>Definitions</header><text display-inline="no-display-inline">In this Act:</text> 
<paragraph id="H4B5FC4A3AFE64ACF9D20328CC2C68F6C"><enum>(1)</enum><header>Automotive products</header><text display-inline="yes-display-inline">The term <quote>automotive products</quote> means parts, components, accessories, and attachments for automotive vehicles.</text></paragraph> 
<paragraph id="H5935E0A0D31E4089B79C67E68D305EDA"><enum>(2)</enum><header>Automotive technologies</header><text>The term <quote>automotive technologies</quote> means technologies relating to automotive products, including the information, concepts, specifications, schematics, formulas, methods, software and firmware, and techniques needed to manufacture, test, install, implement, operate, service, and repair commercially-available automotive products.</text></paragraph> 
<paragraph id="H51462A2C4D6147679D3D966DDCCA954D"><enum>(3)</enum><header>Automotive vehicles</header><text>The term <quote>automotive vehicles</quote> means wheeled or tracked self-propelled land vehicles and trailers.</text></paragraph> 
<paragraph id="H2E48E67CDCD248F9930530F2595813F6"><enum>(4)</enum><header>Commerce Control List</header><text>The term <quote>Commerce Control List</quote> means the list maintained under part 774 of title 15, Code of Federal Regulations. </text></paragraph> 
<paragraph id="HD0049E66425946358F35C1FF8AD6E3F3"><enum>(5)</enum><header>Commercially-available automotive products and technologies</header> 
<subparagraph id="HB35FECA54E4847A0A6DB91B668F16B44"><enum>(A)</enum><header>In general</header><text>The term <quote>commercially-available automotive products and technologies</quote> means commercially-available automotive products and commercially-available automotive technologies (as described in subparagraph (B)) for automotive vehicles that are used on one or more non-military automotive vehicles, including prototypes and concept vehicles, including any of the foregoing when subjected only to minor modifications (as described in subparagraph (C)). </text></subparagraph> 
<subparagraph id="H68C777AA62B54015BE1F471A19F41688"><enum>(B)</enum><header>Commercially-available automotive technologies described</header><text>Commercially-available automotive technologies described in this subparagraph—</text> 
<clause id="H876177B7089C4B01929A7267DC67A75F"><enum>(i)</enum><text>shall include automotive technologies that are reasonably needed to ensure that commercially-available automotive products function properly on a military automotive vehicle, such as specifications and testing requirements necessary to supply the commercially-available automotive product for use on the military vehicle; and</text></clause> 
<clause id="H075967E956A6490AB3FCD40820B29596"><enum>(ii)</enum><text>shall not include technologies that relate to weaponry, military armor, military threat detection systems, military reconnaissance or surveillance systems, military command control and communications systems, or location concealment (other than through sound reduction or application of paints or coatings not restricted for export under regulations administered by the Department of State or Department of Commerce).</text></clause></subparagraph> 
<subparagraph id="H9BA39496B6F64DF2BD0D6C7CD574052A"><enum>(C)</enum><header>Minor modifications described</header><text>Minor modifications, with respect to commercially-available automotive products or commercially-available automotive technologies—</text> 
<clause id="H89DC7920E6DF428D825B68002C22E426"><enum>(i)</enum><text>shall mean modifications of the sort commonly made in the non-military automotive market, including—</text> 
<subclause id="H9CDF766ABF9D4A36B72FEB75E5D68634"><enum>(I)</enum><text>changes from British Imperial/SAE sizes to metric sizes or vice versa;</text></subclause> 
<subclause id="HECFEC595CC764710AFB18F2D6BE6C71C"><enum>(II)</enum><text>moving an input or output from one location on an item to another;</text></subclause> 
<subclause id="HBFD8F21C9BD846E383EA05E7AA977031"><enum>(III)</enum><text>changes to the mounting brackets, fastener locations, and other mounting characteristics of an item;</text></subclause> 
<subclause id="H6C01675C72924FDEAD9C896BC30FE6EE"><enum>(IV)</enum><text>changes to voltage requirements or output;</text></subclause> 
<subclause id="H51BAD14B082542A7BCDD449A4DAB16D3"><enum>(V)</enum><text>increases or decreases in size;</text></subclause> 
<subclause id="H750047E2176D452294D035225D779C84"><enum>(VI)</enum><text>changes to data values used by electronic parts (such as entering tire size into a speedometer assembly so that it can calculate speed);</text></subclause> 
<subclause id="H264842C58C4040C2BFF509007699CC22"><enum>(VII)</enum><text>changes to the number or configuration of constituent items or technologies (such as changing the number of tires to be included in a tire pressure monitoring system from 18 to 6);</text></subclause> 
<subclause id="H1EE4EB95EBB145BC960300F941B39662"><enum>(VIII)</enum><text>selection of a new combination of characteristics from existing options in the non-military automotive vehicle market even if the exact combination of characteristics has not been used before; and</text></subclause> 
<subclause id="H6DEBAFB9364E418D940D3E6AA7DC95AB"><enum>(IX)</enum><text>other changes that would not prevent a product or technology from being a commercial item (as such term is defined under the Federal Acquisition Regulation); and</text></subclause></clause> 
<clause id="HDD49671BCFF24EC0BE33401DB63DFD61"><enum>(ii)</enum><text>shall not include any modifications to products or technologies that constitute, control, or directly enhance automotive vehicle weaponry, military armor, military threat detection systems, military reconnaissance or surveillance systems, military command control and communications systems, or location concealment (other than through sound reduction or application of paints or coatings not restricted for export under regulations administered by the Department of State or Department of Commerce).</text></clause></subparagraph></paragraph> 
<paragraph id="H45A57A966A3A432FA822C7C23482CC34" commented="no"><enum>(6)</enum><header>Export Administration Regulations</header><text display-inline="yes-display-inline">The term <quote>Export Administration Regulations</quote> means—</text> 
<subparagraph id="HE1FFFB325DBA41CEA6C04B42B681E89D"><enum>(A)</enum><text>the Export Administration Regulations as maintained and amended under the authority of the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.; 15 C.F.R. parts 730–780); or</text></subparagraph> 
<subparagraph id="HBDBE36340B5641CCB77B8858773ED59C"><enum>(B)</enum><text>any successor regulations.</text></subparagraph></paragraph> 
<paragraph id="H5AFC1540F90E456C8D673781227CA621" commented="no"><enum>(7)</enum><header>Technology</header><text>The term <quote>technology</quote> has the meaning given the term in the Export Administration Regulations (15 C.F.R. 772).</text></paragraph> 
<paragraph id="HAE10D05362DA4C8BA2415DF15F319B9D"><enum>(8)</enum><header>United States Munitions List</header><text>The term <quote>United States Munitions List</quote> means the list referred to in section 38(a)(1) of the Arms Export Control Act (22 U.S.C. 2778(a)(1)). </text></paragraph></section> 
<section id="H4D09F6AEF11B4B259327DEFB0CE3F4EE"><enum>4.</enum><header>Issuance of proposed regulations</header> 
<subsection id="HF51430AE65104CEE89891D2FD717B032"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than 90 days after the date of the enactment of this Act, the President shall issue proposed regulations to remove from the United States Munitions List and Commerce Control List all commercially-available automotive products and technologies, whether listed in sections of such lists devoted specifically to automotive products and technologies or otherwise controlled by such lists. </text></subsection> 
<subsection id="H5B93D457FF8F4B0CAF72E933490BBB2F"><enum>(b)</enum><header>Exception</header><text display-inline="yes-display-inline">Subsection (a) shall not apply with respect to a commercially-available automotive product or technology if the President determines that the removal of such automotive product or technology from the United States Munitions List or Commerce Control List—</text> 
<paragraph id="H6E8BDB437E1F499F8F7B24A243A00B9F"><enum>(1)</enum><text>would make a significant contribution to the military potential of another country; or</text></paragraph> 
<paragraph id="HEE090C2E8DB94C45852A07FB2BA5C9AC"><enum>(2)</enum><text>is contrary to the national security interests of the United States.</text></paragraph></subsection> 
<subsection id="H78C4FA4E28F24059B97DCC7EDADFD01A"><enum>(c)</enum><header>Report to Congress</header><text display-inline="yes-display-inline">The President shall submit to Congress a report with respect to each determination of the President under subsection (b) not to remove from the United States Munitions List or Commerce Control List a commercially-available automotive product or technology. Each such report shall—</text> 
<paragraph id="H74B82F2CE42C44488A2F47529AB7E552"><enum>(1)</enum><text>demonstrate that the automotive product or technology has been defined as specifically and narrowly as possible;</text></paragraph> 
<paragraph id="H44FBEF36CF484D0F8F6623791DDF42B6"><enum>(2)</enum><text>estimate the anticipated costs and burdens that continuing regulation of the automotive product or technology will entail in terms of—</text> 
<subparagraph id="HA117997A85CF4082A4908DF50E0AD099"><enum>(A)</enum><text>decreased availability of the product or technology to the United States military;</text></subparagraph> 
<subparagraph id="HE5D8D859DDC44455889DAA2B924F06AE"><enum>(B)</enum><text>increased cost of the product or technology to the United States military and taxpayers;</text></subparagraph> 
<subparagraph id="H171C4519BAFE4A238555EB7606A9325A"><enum>(C)</enum><text>burdens to the modernization of the United States military’s automotive vehicle fleet as compared with United States adversaries; and</text></subparagraph> 
<subparagraph id="H7935834460444A3D9CA8A107316E1067"><enum>(D)</enum><text>the regulatory and enforcement costs associated with monitoring and enforcing such restrictions on the product or technology; and</text></subparagraph></paragraph> 
<paragraph id="H686A64198F0B49C5B7FB2058AF3669AF"><enum>(3)</enum><text display-inline="yes-display-inline">state the reasons why the President did not use targeted trade sanctions imposed through regulation or executive order to achieve the objectives underlying the determination of the President under subsection (b) not to remove the automotive product or technology from the United States Munitions List or Commerce Control List. </text></paragraph></subsection></section> 
<section id="HD721EC7401BF4FCCA9F94ABC5A32C741"><enum>5.</enum><header>Issuance of final regulations</header> 
<subsection id="H5532224225DB4BEA8A2E59ADB97A8294"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than 180 days after the date of the enactment of this Act, the President shall issue final regulations to remove from the United States Munitions List and the Commerce Control List all commercially-available automotive products and technologies, whether listed in sections of such lists devoted specifically to automotive products and technologies or otherwise controlled by such lists.</text></subsection> 
<subsection id="HDC382182DA074B5C957E4FF618E77379"><enum>(b)</enum><header>Exception</header><text display-inline="yes-display-inline">Subsection (a) shall not apply with respect to a commercially-available automotive product or technology that—</text> 
<paragraph id="H6C0707FABB804CE39CCBFC4B1C4F9914"><enum>(1)</enum><text>is subject to a determination of the President under section 4(b) not to remove the automotive product or technology from the United States Munitions List or Commerce Control List; and</text></paragraph> 
<paragraph id="HDE6EFC3FB4C44B39ACE6DC164733BC73"><enum>(2)</enum><text>with respect to which the President has submitted to Congress a report under section 4(c).</text></paragraph></subsection></section> 
<section id="H3B3059FC2365460A8B3F22AE16597EE1"><enum>6.</enum><header>Annual review and removal; report</header> 
<subsection id="H38BB10BE2CB94193AB86BBBBE1D1923D"><enum>(a)</enum><header>Review and removal</header><text display-inline="yes-display-inline">To the extent that the President determines not to remove from the United States Munitions List or Commerce Control List a commercially-available automotive product or technology under section 5(b), whether listed in sections of such lists devoted specifically to automotive products and technologies or otherwise controlled by such lists, the President shall—</text> 
<paragraph id="H8EA87E659EAB454EA6022F98162137B6"><enum>(1)</enum><text>on an annual basis, review such determination for purposes of—</text> 
<subparagraph id="H5A5F11BEA761409794F597D7D6C25C04"><enum>(A)</enum><text>reaffirming the determination to ensure it continues to be accurate; or</text></subparagraph> 
<subparagraph id="HD25582A8C19D4CE1B320B7982BCCA7CE"><enum>(B)</enum><text display-inline="yes-display-inline">reversing the determination if it is no longer accurate; and</text></subparagraph></paragraph> 
<paragraph id="HD348EF86736248FB8BB3F762954BD9FD"><enum>(2)</enum><text display-inline="yes-display-inline">not later than 90 days after the completion of a review and decision to reverse the determination under paragraph (1)(B), remove the automotive product or technology from the United States Munitions List or Commerce Control List.</text></paragraph></subsection> 
<subsection id="HF69B50A09E3946049995A3F3A098893F"><enum>(b)</enum><header>Report</header><text display-inline="yes-display-inline">To the extent that the President determines not to remove from the United States Munitions List or Commerce Control List a commercially-available automotive product or technology under section 5(b), whether listed in sections of such lists devoted specifically to automotive products and technologies or otherwise controlled by such lists, the President shall submit to Congress an annual report providing the information described in paragraphs (1), (2), and (3) of section 4(c) with respect to the automotive product or technology.</text></subsection></section> 
<section id="H400DABC0895E4315AF4A6015B7781F2A"><enum>7.</enum><header>Clarification regarding trade sanctions</header><text display-inline="no-display-inline">Nothing in this Act shall be construed to require the President to revoke or alter any restrictions imposed on exports or reexports involving countries, organizations, or individuals who are subject to United States trade sanctions, whether imposed by regulation, executive order, or an Act of Congress.</text> </section> 
</legis-body> 
</bill> 
