[Congressional Record Volume 142, Number 104 (Tuesday, July 16, 1996)]
[House]
[Pages H7563-H7589]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   EXPORT ADMINISTRATION ACT OF 1996

  Mr. ROTH. Mr. Speaker, I move to suspend the rules and pass the bill 
(H.R. 361) to provide authority to control exports, and for other 
purposes, as amended.
  The Clerk read as follows:

                                H.R. 361

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

     SECTION 1. TABLE OF CONTENTS.

       The table of contents of this Act is as follows:

Sec. 1. Table of contents.

                     TITLE I--EXPORT ADMINISTRATION

Sec. 101. Short title.
Sec. 102. Findings.
Sec. 103. Policy statement.
Sec. 104. General provisions.
Sec. 105. Multilateral controls.
Sec. 106. Emergency controls.
Sec. 107. Short supply controls.
Sec. 108. Foreign boycotts.
Sec. 109. Procedures for processing export license applications; other 
              inquiries.
Sec. 110. Violations.
Sec. 111. Controlling proliferation activity.
Sec. 112. Administrative and judicial review.
Sec. 113. Enforcement.
Sec. 114. Export control authorities and procedures.
Sec. 115. Annual report.
Sec. 116. Definitions.
Sec. 117. Effects on other Acts.
Sec. 118. Secondary Arab boycott.
Sec. 119. Conforming amendments to other laws.
Sec. 120. Expiration date.
Sec. 121. Savings provision.

               TITLE II--NUCLEAR PROLIFERATION PREVENTION

Sec. 201. Repeal of termination of provisions of the Nuclear 
              Proliferation Prevention Act of 1994.
Sec. 202. Seeking multilateral support for unilateral sanctions.
Sec. 203. Sanctions under the Nuclear Proliferation Prevention Act of 
              1994.
                     TITLE I--EXPORT ADMINISTRATION

     SEC. 101. SHORT TITLE.

       This title may be cited as the ``Export Administration Act 
     of 1996''.

     SEC. 102. FINDINGS.

       The Congress makes the following findings:
       (1) Export controls are a part of a comprehensive response 
     to national security threats. United States exports should be 
     restricted only for significant national security, 
     nonproliferation, and foreign policy reasons.
       (2) Exports of certain commodities and technology may 
     adversely affect the national security and foreign policy of 
     the United States by making a significant contribution to the 
     military potential of individual countries or by 
     disseminating the capability to design, develop, test, 
     produce, stockpile, or use weapons of mass destruction, 
     missile delivery systems, and other significant military 
     capabilities. Therefore, the administration of export 
     controls should emphasize the control of these exports.
       (3) The acquisition of sensitive commodities and technology 
     by those countries and end users whose actions or policies 
     run counter to United States national security or foreign 
     policy interests may enhance the military capabilities of 
     those countries, particularly their ability to design, 
     develop, test, produce, stockpile, use, and deliver nuclear, 
     chemical, and biological weapons, missile delivery systems, 
     and other significant military capabilities. This enhancement 
     threatens the security of the United States and its allies, 
     and places additional demands on the defense budget of the 
     United States. Availability to countries and end users of 
     items that contribute to military capabilities or the 
     proliferation of weapons of mass destruction is a fundamental 
     concern of the United States and should be eliminated through 
     negotiations and other appropriate means whenever possible.
       (4) With the growing importance of exports to sustained 
     United States economic growth and vitality, restrictions on 
     exports must be evaluated in terms of their effects on the 
     United States economy.
       (5) Export controls cannot be the sole instrument of the 
     United States to prevent a country or end user from 
     developing weapons of mass destruction. For this reason, 
     export controls should be applied as part of a comprehensive 
     response to security threats.
       (6) The national security of the United States depends not 
     only on wise foreign policies and a strong defense, but also 
     a vibrant national economy. To be truly effective, export 
     controls should be applied uniformly by all suppliers.
       (7) International treaties, such as the Chemical Weapons 
     Convention, and international agreements and arrangements 
     intended to control, lessen, or eliminate weapons of mass 
     destruction should be fully implemented by, among other 
     things, imposing restrictions on imports and exports of 
     designated items, monitoring, and transmitting reports on, 
     the production, processing, consumption, export, and import 
     of designated items, and complying with verification regimes 
     mandated by such treaties, agreements, and arrangements.
       (8) Except in the event the United States is the sole 
     source of critical supplies, unilateral export controls are 
     generally not truly effective in influencing the behavior of 
     other governments or impeding access to controlled items. 
     Unilateral controls alone may impede access to United States 
     sources of supply without affecting the ability of countries 
     to obtain controlled items elsewhere. Moreover, unilateral 
     controls generally permit foreign competitors to serve 
     markets the United States Government denies to United States 
     firms and workers, thus impairing the reliability of United 
     States suppliers in comparison with their foreign 
     competitors. At the same time, the need to lead the 
     international community or overriding national security or 
     foreign policy interests may justify unilateral controls in 
     specific cases.
       (9) The United States recognizes the importance of 
     comprehensive enforcement measures to maximize the 
     effectiveness of multilateral controls.
       (10) The United States export control system must not be 
     overly restrictive or bureaucratic, or undermine the 
     competitive position of United States industry. The export 
     control system must be efficient, responsive, transparent, 
     and effective.
       (11) Export restrictions that negatively affect the United 
     States industrial base may ultimately weaken United States 
     military capabilities and lead to dependencies on foreign 
     sources for key components.
       (12) Minimization of restrictions on exports of 
     agricultural commodities and products is of critical 
     importance to the maintenance of a sound agricultural sector, 
     to a positive contribution to the balance of payments, to 
     reducing the level of Federal expenditures for agricultural 
     support programs, and to United States cooperation in efforts 
     to eliminate malnutrition and world hunger.
       (13) Minimization of restrictions on the export of 
     information technology products and services is of critical 
     importance to United States leadership in removing obstacles 
     to the effective development of a superior global information 
     infrastructure and the new jobs and markets, increased trade 
     and information flows, improved national security, and new 
     tools for the improvement of the quality of life for people 
     globally that will be created.
       (14) The United States should play a leading role in 
     promoting transparency and responsibility with regard to the 
     transfers of conventional armaments and sensitive dual-use 
     goods and technologies.

     SEC. 103. POLICY STATEMENT.

       It is the policy of the United States to do the following:
       (1) To stem the proliferation of weapons of mass 
     destruction, and the means to deliver them, and other 
     significant military capabilities by--
       (A) leading international efforts to control the 
     proliferation of chemical and biological weapons, nuclear 
     explosive devices, missile delivery systems, and other 
     significant military capabilities;
       (B) controlling involvement of United States persons in, 
     and contributions by United States persons to, foreign 
     programs intended to develop weapons of mass destruction, 
     missiles, and other significant military capabilities, and 
     the means to design, test, develop, produce, stockpile, or 
     use them; and
       (C) implementing international treaties or other agreements 
     or arrangements concerning controls on exports of designated 
     items, reports on the production, processing, consumption, 
     and exports and imports of such items, and compliance with 
     verification programs.
       (2) To restrict the export of items--
       (A) that would significantly contribute to the military 
     potential of countries so as to prove detrimental to the 
     national security of the United States or its allies; or
       (B) where necessary to further significantly the foreign 
     policy of the United States or to fulfill its declared 
     international commitments.
       (3) To--
       (A) minimize uncertainties in export control policy; and
       (B) encourage trade with all countries with which the 
     United States has diplomatic or trading relations, except 
     those countries with which such trade has been determined by 
     the President to be against the national interest.
       (4) To restrict export trade when necessary to protect the 
     domestic economy from the excessive drain of scarce materials 
     and to reduce the serious inflationary impact of foreign 
     demand.
       (5) To further increase the reliance of the United States 
     upon multilateral coordination of controls through effective 
     control regimes that maintain lists of controlled items

[[Page H7564]]

     that are truly critical to the control objectives, strive to 
     increase membership to include all relevant countries, 
     maintain common criteria and procedures for licensing, and 
     harmonize member countries' licensing practices. It is the 
     policy of the United States that multilateral controls are 
     the best means of achieving the control objectives of the 
     United States.
       (6) To impose unilateral controls only when it is necessary 
     to further significantly the national security or foreign 
     policy of the United States, and only after full 
     consideration of the economic impact of the controls and 
     their effectiveness in achieving their intended objectives.
       (7) To make all licensing determinations in a timely manner 
     so undue delays in the licensing process will not cause a 
     United States person to lose an export sale.
       (8) To use export controls to deter and punish acts of 
     international terrorism and to encourage other countries to 
     take immediate steps to prevent the use of their territories 
     or resources to aid, encourage, or give sanctuary to those 
     persons involved in directing, supporting, or participating 
     in acts of international terrorism. To this end, consistent 
     with the policies of this section and the provisions of this 
     title, the United States should, by restricting exports to 
     countries that have violated international norms of behavior 
     by repeatedly supporting acts of international terrorism, 
     distance itself from those countries.
       (9)(A) To counteract 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.
       (B) To encourage and, in specified cases, require United 
     States persons engaged in the export of commodities, 
     technology, and 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.
       (10) To streamline export control functions and increase 
     administrative accountability, and thereby better serve the 
     exporting public by reducing and eliminating overlapping, 
     conflicting, and inconsistent regulatory burdens.
       (11) To minimize restrictions on the export of agricultural 
     commodities and products.
       (12) To minimize restrictions on the export of information 
     technology products and services as part of a flexible 
     regulatory environment that can keep pace with the rapid 
     technological changes necessary to realize the full economic, 
     societal, and national security benefits of United States 
     leadership in the development of a superior global 
     information infrastructure.
       (13) To cooperate with other countries to promote greater 
     transparency and responsibility with regard to the transfers 
     of armaments and sensitive goods and technologies, both for 
     the purpose of developing common understandings of the risks 
     to international peace and regional security associated with 
     the transfers of such items and to coordinate national 
     control policies to combat those risks.
       (14) To enhance the national security and nonproliferation 
     interests of the United States. To this end and consistent 
     with the other policies of this section and the provisions of 
     this title, the United States will use export controls when 
     necessary to ensure that access to weapons of mass 
     destruction, missile delivery systems, and other significant 
     military capabilities is restricted. While the multilateral 
     nonproliferation regimes will be the primary instruments 
     through which the United States will pursue its 
     nonproliferation goals, it may also, consistent with the 
     policies of this section and the provisions of this title, 
     take unilateral action.
       (15) To promote international peace, stability, and respect 
     for fundamental human rights. The United States may establish 
     controls on exports that contribute to the military 
     capabilities of countries that threaten international peace 
     or stability or to countries that abuse the fundamental 
     rights of their citizens, or to promote other important 
     foreign policy objectives of the United States, consistent 
     with the policies of this section and the provisions of this 
     title.

     SEC. 104. GENERAL PROVISIONS.

       (a) Types of Licenses.--Under such conditions as the 
     Secretary may impose, consistent with the provisions of this 
     title, the Secretary may require any type of license 
     appropriate to the effective and efficient implementation of 
     this title, including the following:
       (1) Specific exports.--A license authorizing a specific 
     export.
       (2) Multiple exports.--Licenses authorizing multiple 
     exports, issued pursuant to an application by the exporter, 
     in lieu of a license for each such export. Licenses under 
     this paragraph shall be designed to encourage and acknowledge 
     exporters' internal control programs for ensuring compliance 
     with the terms of the license.
       (b) United States Commodity Control Index.--
       (1) In general.--The Secretary shall establish and 
     maintain, in consultation with the Secretary of Defense and 
     the heads of other appropriate departments and agencies, a 
     United States Commodity Control Index specifying the license 
     requirements under this title that are applicable to the 
     items on the list.
       (2) Contents.--The control index shall--
       (A) consist of a multilateral control list of items on 
     which export controls are imposed under section 105, an 
     emergency control list of items on which export controls are 
     imposed under section 106, and a short supply control list of 
     commodities on which export controls are imposed under 
     section 107;
       (B) include, as part of the multilateral and emergency 
     control lists, those items identified pursuant to section 
     111(a);
       (C) for each item on the control index, specify with 
     particularity the performance (where applicable) and other 
     identifying characteristics of the item and provide a 
     rationale for why the item is on the control list;
       (D) identify countries, and, as appropriate, end uses or 
     end users, including specific projects and end users of 
     concern, cross-referenced with the list of commodities and 
     technology on which export controls are imposed; and
       (E) be sufficiently specific and clear as to guide 
     exporters and licensing officers in determinations of 
     licensing requirements under this title.
       (c) Denied or Debarred Parties, Sanctioned Parties, Blocked 
     Persons, Specially Designated Nationals, and Other Parties 
     Presenting Unacceptable Risks of Diversion.--
       (1) Denied or debarred parties, sanctioned parties, blocked 
     persons, and specially designated nationals.--The President 
     shall ensure that an official list is published semiannually 
     in the Federal Register of all parties denied or debarred 
     from export privileges under this title or under the Arms 
     Export Control Act, all parties sanctioned for prohibited 
     proliferation activity under this title or other statutes, 
     and all blocked persons and specially designated nationals. 
     For purposes of this paragraph, a ``blocked person'' or 
     ``specially designated national'' is a person or entity so 
     designated by the President or the Secretary of the Treasury 
     under the Trading With the Enemy Act, or the International 
     Emergency Economic Powers Act, with whom transactions are 
     prohibited on account of the relationship of that person or 
     entity with a country, organization, or activity against 
     which sanctions are imposed under either such Act. Promptly 
     after any person is designated a ``blocked person'' or 
     ``specially designated national'', the Secretary of the 
     Treasury shall publish such designation in the Federal 
     Register.
       (2) Other parties.--The Secretary shall maintain a list of 
     parties for whom licenses under this title will be 
     presumptively denied.
       (d) Delegation of Authority.--Subject to the provisions of 
     this title, the President may delegate the power, authority, 
     and discretion conferred upon the President by this title to 
     such departments, agencies, and officials of the Government 
     as the President considers appropriate, except that no 
     authority under this title may be delegated to, or exercised 
     by, any official of any department or agency the head of 
     which is not appointed by the President, by and with the 
     advice and consent of the Senate. The President may not 
     delegate or transfer his power, authority, or discretion to 
     overrule or modify any recommendation or decision made by the 
     Secretary, the Secretary of Defense, or the Secretary of 
     State under this title and may not delegate the authority 
     under section 106(a)(4).
       (e) Notification of the Public; Consultation With 
     Business.--The Secretary shall keep the public fully apprised 
     of changes in export control policy and procedures instituted 
     in conformity with this title with a view to encouraging 
     trade. The Secretary shall consult regularly with 
     representatives of a broad spectrum of enterprises, labor 
     organizations, and citizens interested in or affected by 
     export controls, in order to obtain their views on United 
     States export control policy and the foreign availability of 
     items subject to controls.
       (f) Export Advisory Committees.--
       (1) Appointment.--Upon his or her own initiative or upon 
     the written request of representatives of a substantial 
     segment of any industry which produces any items subject to 
     export controls under this title or under the International 
     Emergency Economic Powers Act, or being considered for such 
     controls, the Secretary shall appoint export advisory 
     committees with respect to any such items. Each such 
     committee shall consist of representatives of United States 
     industry and Government, including the Department of Commerce 
     and other appropriate departments and agencies of the 
     Government. The Secretary shall permit the widest possible 
     participation by the business community on the export 
     advisory committees.
       (2) Functions.--Export advisory committees appointed under 
     paragraph (1) shall advise and assist the Secretary, and any 
     other department, agency, or official of the Government 
     carrying out functions under this title, on actions 
     (including all aspects of controls imposed or proposed) 
     designed to carry out the policies of this title concerning 
     the items with respect to which such export advisory 
     committees were appointed. Such committees, where they have 
     expertise in such matters, shall be consulted on questions 
     involving--
       (A) technical matters,
       (B) worldwide availability and actual utilization of 
     production technology,
       (C) licensing procedures which affect the level of export 
     controls applicable to any items,

[[Page H7565]]

       (D) revisions of the multilateral control list (as provided 
     in section 105(g)), including proposed revisions of 
     multilateral controls in which the United States 
     participates,
       (E) the issuance of regulations,
       (F) the impact and interpretation of existing regulations,
       (G) processes and procedures for review of licenses and 
     policy,
       (H) any other questions relating to actions designed to 
     carry out this title, and
       (I) the operation and conduct of international business 
     transactions.
     Nothing in this subsection shall prevent the United States 
     Government from consulting, at any time, with any person 
     representing an industry or the general public, regardless of 
     whether such person is a member of an export advisory 
     committee. Members of the public shall be given a reasonable 
     opportunity, pursuant to regulations prescribed by the 
     Secretary, to present evidence to such committees.
       (3) Reimbursement of expenses.--Upon the request of any 
     member of any export advisory committee appointed under 
     paragraph (1), the Secretary may, if the Secretary determines 
     it to be appropriate, reimburse such member for travel, 
     subsistence, and other necessary expenses incurred by such 
     member in connection with the duties of such member.
       (4) Chairperson.--Each export advisory committee appointed 
     under paragraph (1) shall elect a chairperson, and shall meet 
     at least every 3 months at the call of the chairperson, 
     unless the chairperson determines, in consultation with the 
     other members of the committee, that such a meeting is not 
     necessary to achieve the purposes of this subsection. Each 
     such committee shall be terminated after a period of 2 years, 
     unless extended by the Secretary for additional periods of 2 
     years each. The Secretary shall consult with each such 
     committee on such termination or extension of that committee.
       (5) Access to information.--To facilitate the work of the 
     export advisory committees appointed under paragraph (1), the 
     Secretary, in conjunction with other departments and agencies 
     participating in the administration of this title, shall 
     disclose to each such committee adequate information, 
     consistent with national security, pertaining to the reasons 
     for the export controls which are in effect or contemplated 
     for the items or policies for which that committee furnishes 
     advice. Information provided by the export advisory 
     committees shall not be subject to disclosure under section 
     552 of title 5, United States Code, and such information 
     shall not be published or disclosed unless the Secretary 
     determines that the withholding thereof is contrary to the 
     national interest.
       (g) Development and Review of the Control Index.--
       (1) In general.--
       (A) Consistent with the general guidance of the Export 
     Control Policy Committee established in section 114(c), the 
     Secretary of Defense and the heads of other appropriate 
     departments and agencies may identify and recommend to the 
     Secretary--
       (i) commodities and technology for inclusion on, or 
     deletion from, the multilateral and emergency control lists; 
     and
       (ii) the licensing requirements that should or should not 
     apply to these commodities and technology.
       (B) The Secretary of Defense shall have primary 
     responsibility for identifying commodities and technologies 
     that are critical to the design, development, test, 
     production, stockpiling, or use of weapons of mass 
     destruction and other military capabilities, including 
     nuclear, biological, and chemical weapons, and manned and 
     unmanned vehicles capable of delivering such weapons, in 
     determining recommendations for inclusion of items on the 
     control index.
       (C) If the Secretary of Defense, the Secretary of State, or 
     the Secretary of Energy disagrees with the decision of the 
     Secretary regarding the inclusion or deletion, or licensing 
     requirements of, any commodity or technology, the Secretary 
     of Defense, State, or Energy (as the case may be) may, within 
     30 days after the Secretary makes the decision, appeal the 
     Secretary's decision to the President in writing, but only on 
     the basis of the specific provisions of this title. If the 
     Secretary of Defense, the Secretary of State, or the 
     Secretary of Energy fails to appeal a decision of the 
     Secretary in accordance with the preceding sentence, he or 
     she shall be deemed to have no objection to the decision. The 
     President shall resolve a disagreement under this subsection 
     not later than 30 days after the appeal is made under this 
     paragraph.
       (2) Negotiations.--The Secretary of State, in consultation 
     with appropriate departments and agencies, shall be 
     responsible for conducting negotiations with other countries 
     regarding multilateral arrangements for restricting the 
     export of items to carry out the policies of this title. All 
     appropriate departments and agencies shall develop initial 
     technical parameters and product definitions in connection 
     with the development of proposals within the United States 
     Government to be made to multilateral regimes, in 
     consultation with the export advisory committees as provided 
     in paragraph (3).
       (3) Consultations with export advisory committees.--The 
     Secretary shall consult with the appropriate export advisory 
     committee appointed under this section with respect to 
     changes in the control index, and such export advisory 
     committee may submit recommendations to the Secretary with 
     respect to such changes. The Secretary shall consider the 
     recommendations of the export advisory committee and shall 
     inform the committee of the disposition of its 
     recommendations. The Secretary shall also seek comments and 
     recommendations from the public in connection with changes in 
     the control index. To the maximum extent practicable and 
     consistent with the conduct of international negotiations, 
     such comments and recommendations should be taken into 
     consideration in the development of United States Government 
     proposals and positions to be taken in multilateral regimes.
       (h) Right of Export.--No authority or permission to export 
     may be required under this title, or under regulations issued 
     under this title, except to carry out the policies set forth 
     in section 103.
       (i) International Obligations Under Treaties.--
     Notwithstanding any other provision of this title containing 
     limitations on authority to control exports, the Secretary, 
     in consultation with the Secretary of State, may impose 
     controls on exports to a particular country or countries in 
     order to fulfill obligations of the United States under 
     resolutions of the United Nations and under treaties to which 
     the United States is a party. The Secretary may regulate 
     domestic and foreign conduct consistent with the policies of 
     such United Nations resolutions, treaties, and other 
     international agreements. Such authority shall include, but 
     not be limited to, authority to prohibit activity such as 
     financing, contracting, providing services, or employment, to 
     deny access to items in the United States and abroad, to 
     conduct audits of records and inspections of facilities, to 
     compel reports, and to curtail travel.
       (j) Fees.--No fee may be charged in connection with the 
     submission or processing of an export license application 
     under this title.

     SEC. 105. MULTILATERAL CONTROLS.

       (a) Authority.--
       (1) In general.--In order to carry out the policies set 
     forth in paragraphs (1), (2), (5), (13), (14), and (15) of 
     section 103, the President may, in accordance with this 
     section, prohibit, curtail, or require the provision of 
     information regarding, the export of any commodities, 
     technology, or other information subject to the jurisdiction 
     of the United States, or exported by any person subject to 
     the jurisdiction of the United States, in order to implement 
     multilateral export control regimes. The authority under this 
     paragraph shall include, but not be limited to, the authority 
     to regulate domestic and foreign conduct, to prohibit 
     activity such as financing, contracting, providing services, 
     or employment, to deny access to items in the United States 
     and abroad, to conduct audits of records and inspections of 
     facilities, and to compel reports. The authority granted by 
     this subsection may not be exercised to impose unilateral 
     controls.
       (2) Exercise of authority.--The authority granted by this 
     subsection shall be implemented by the Secretary, in 
     consultation with appropriate departments and agencies.
       (3) Consistency with export control regimes.--Any provision 
     of this title that provides that no authority or permission 
     to export may be required under this title shall not apply to 
     the extent that such a provision is inconsistent with an 
     international commitment of the United States under a 
     multilateral export control regime.
       (b) Multilateral Control List.--The Secretary shall, in 
     consultation with appropriate departments and agencies as 
     provided in section 104(g), designate as part of the control 
     index, a multilateral control list, comprised of the items on 
     which export controls are in effect under this section.
       (c) Export Licensing Policies.--The President shall ensure 
     that steps are taken to increase the degree to which the 
     licensing requirements of other export regime members are 
     harmonized with the licensing requirements maintained by the 
     Secretary in controlling items under this section.
       (d) Multilateral Control Regimes.--
       (1) Policy.--In order to carry out the policies set forth 
     in section 103, the Secretary of State, in consultation with 
     appropriate departments and agencies, should seek 
     multilateral arrangements that are intended to secure 
     effective achievement of these policies and, in so doing, 
     also establish fairer and more predictable competitive 
     opportunities for United States exporters.
       (2) Standards for national systems.--In the establishment 
     and maintenance of multilateral regimes, the Secretary of 
     State, in consultation with appropriate departments and 
     agencies, shall take steps to attain the cooperation of 
     members of the regimes in the effective implementation of 
     export control systems. Such systems should contain the 
     following elements:
       (A) National laws providing enforcement authorities, civil 
     and criminal penalties, and statutes of limitations 
     sufficient to deter potential violations and punish 
     violators.
       (B) A program to evaluate export license applications that 
     includes sufficient technical expertise to assess the 
     licensing status of exports and ensure the reliability of end 
     users.
       (C) An enforcement mechanism that provides authority for 
     trained enforcement officers to investigate and prevent 
     illegal exports.
       (D) A system of export control documentation to verify the 
     movement of items.
       (E) Procedures for the coordination and exchange of 
     information concerning licensing, end users, and enforcement.

[[Page H7566]]

       (F) Adequate national resources devoted to carrying out 
     subparagraphs (A) through (E).
       (3) Standards for multilateral regimes.--In the 
     establishment and maintenance of multilateral regimes, the 
     Secretary of State, in consultation with appropriate 
     departments and agencies, should seek, consistent with the 
     policies set forth in section 103, the following features for 
     the multilateral control regimes in which the United States 
     participates:
       (A) Full membership.--Achieve membership of all supplier 
     countries whose policies and activities are consistent with 
     the objectives and membership criteria of the multilateral 
     regime.
       (B) Effective enforcement and compliance.--Promote 
     enforcement and compliance with the rules and guidelines of 
     the members of the regime through maintenance of an effective 
     control list.
       (C) Public understanding.--Enhance public understanding of 
     each regime's purpose and procedures.
       (D) Effective implementation procedures.--Achieve 
     procedures for effective implementation of the rules and 
     guidelines of the regime through uniform and consistent 
     interpretations of export controls agreed to by the 
     governments participating in the regime.
       (E) Enhanced cooperation among regime members.--Reach 
     agreement to enhance cooperation among members of the regime 
     in obtaining the agreement of governments outside the regime 
     to restrict the export of items controlled by the regime, to 
     establish an ongoing mechanism in the regime to coordinate 
     planning and implementation of export control measures 
     related to such agreements, and to remove items from the list 
     of items controlled by the regime if the control of such 
     items no longer serves the objectives of the members of the 
     regime.
       (F) Periodic high-level meetings.--Conduct periodic 
     meetings of high-level representatives of participating 
     governments for the purpose of coordinating export control 
     policies and issuing policy guidance to members of the 
     regime.
       (G) Common list of controlled items.--Reach agreement on a 
     common list of items controlled by the regime.
       (H) Treatment of certain countries.--Prevent the export or 
     diversion of the most sensitive items to countries whose 
     activities are threatening to the national security of the 
     United States or its allies.
       (I) Disclosure of nonproprietary information.--Promote 
     transparency and timely disclosure of nonproprietary 
     information with respect to the transfers of sensitive dual-
     use commodities and technologies, when appropriate, for the 
     purpose of developing common understandings of the risks to 
     international peace and regional security associated with 
     such transfers and to coordinate national control policies to 
     combat those risks.
       (e) Incentives for Partnership.--Consistent with the 
     policies of this title and consistent with the objectives, 
     rules, and guidelines of the individual regime--
       (1) the Secretary, in consultation with appropriate 
     departments and agencies, may provide for exports free of 
     license requirements to and among members of a multilateral 
     regime for items subject to controls under such a 
     multilateral regime; and
       (2) the Secretary, in consultation with appropriate 
     departments and agencies, may adjust licensing policies with 
     respect to a particular country or entity for access to items 
     controlled under this title to the extent of the adherence of 
     that country or entity to the export control policies of this 
     section.
     Actions by the Secretary under paragraphs (1) and (2) shall 
     be consistent with the requirements of section 111(a)(1)(C).
       (f) Transparency of Multilateral Control Regimes.--
       (1) Publication of information on each existing regime.--
     Within 6 months after the date of the enactment of this Act, 
     the Secretary shall, to the extent doing so is not 
     inconsistent with arrangements in multilateral export control 
     regimes, publish in the Federal Register the following 
     information with respect to each multilateral control regime 
     existing on the date of the enactment of this Act:
       (A) Purposes of the control regime.
       (B) Members of the regime.
       (C) Licensing policy.
       (D) Items subject to the controls under the regime, 
     together with all public notes, understandings, and other 
     aspects of the agreement of the regime, and all changes 
     thereto.
       (E) Any countries, end uses, or end users that are subject 
     to the controls.
       (F) Rules of interpretation.
       (G) Major policy actions.
       (H) The rules and procedures of the regime for establishing 
     and modifying any matter described in subparagraphs (A) 
     through (G) and for reviewing export license applications.
       (2) New regimes.--Within 2 months after the United States 
     joins or organizes a new export control regime, the Secretary 
     shall, to the extent doing so is not inconsistent with 
     arrangements in the regime, publish the information described 
     in subparagraphs (A) through (H) of paragraph (1) with 
     respect to that regime.
       (3) Publication of changes.--Within 2 months after the 
     applicable regime adopts any changes in the information 
     published under this subsection, the Secretary shall, to the 
     extent doing so is not inconsistent with arrangements in the 
     regime, publish such changes in the Federal Register.
       (g) Review of Controlled Items.--
       (1) In general.--Under the policy guidance of the Export 
     Control Policy Committee established in section 114(c), and 
     consistent with the procedures in section 104(g), the 
     Secretary shall review all items on the multilateral control 
     list maintained under subsection (b) at least every 2 years, 
     except that the Secretary shall review annually whether the 
     policy set forth in section 103(12) is being achieved. At the 
     conclusion of each review, the Secretary shall decide whether 
     to maintain or remove items from the multilateral control 
     list, maintain, change, or eliminate the specifications, 
     performance thresholds, or licensing requirements on items on 
     the list, or add items to the list.
       (2) Considerations.--In conducting the review, the 
     Secretary shall--
       (A) consult with the Secretary of Defense concerning 
     militarily critical technologies;
       (B) consult with the appropriate export advisory committees 
     appointed under section 104(f) and consider recommendations 
     of such committees with respect to proposed changes in the 
     multilateral control list;
       (C) consider whether controlled items or their equivalent 
     are so widely available in the United States (in terms of 
     quantity, cost, and means of sale and delivery) that the 
     requirement for a license is ineffective in achieving the 
     purpose of the control;
       (D) consider whether the differences between the export 
     controls of the United States and that of governments of 
     foreign suppliers of competing items effectively has placed 
     or will place the United States exporter at a significant 
     commercial disadvantage with respect to its competitors 
     abroad, and has placed, or will place, employment in the 
     United States in jeopardy;
       (E) consider the results of determinations made under 
     section 114(k); and
       (F) consider comments received pursuant to the notice of 
     review provided under paragraph (3)(A).
       (3) Procedures.--
       (A) Notice of review.--Before beginning each review under 
     this subsection, the Secretary shall publish a notice of that 
     review in the Federal Register and shall provide a 30-day 
     period for comments and submission of data, including by 
     exporters and other interested parties.
       (B) Proposals to export control regimes.--If a revision to 
     the multilateral control list or to a licensing requirement 
     under this paragraph is inconsistent with the control lists, 
     guidelines, or the licensing requirements of, an export 
     control regime, the Secretary of State shall propose such 
     revision to that regime. Such revision shall become effective 
     only to the extent such revision is agreed to by the export 
     control regime.
       (C) Publication of revisions.--The Secretary shall publish 
     in the Federal Register any revisions in the list, with an 
     explanation of the reasons for the revisions.

     SEC. 106. EMERGENCY CONTROLS.

       (a) Authority.--
       (1) In general.--In order to carry out the policy set forth 
     in paragraphs (1), (2), (6), (8), (14), and (15) of section 
     103, the President may, in accordance with the provisions of 
     this section, unilaterally prohibit, curtail, or require the 
     provision of information regarding the export of any 
     commodity, technology, or other information subject to the 
     jurisdiction of the United States or exported by any person 
     subject to the jurisdiction of the United States. The 
     authority under this paragraph shall include, but not be 
     limited to, the authority to regulate domestic and foreign 
     conduct, to prohibit activity such as financing, contracting, 
     providing services, or employment, to deny access to items in 
     the United States and abroad, to conduct audits of records 
     and inspections of facilities, and to compel reports.
       (2) Exercise of authority.--The authority contained in this 
     section shall be exercised by the Secretary, in consultation 
     with the Secretary of State, the Secretary of Defense, and 
     such other departments and agencies as the President 
     considers appropriate, and consistent with the procedures in 
     section 104(g).
       (3) Expiration of controls.--
       (A) In general.--Any controls imposed under this section 
     shall expire 12 months after they are imposed, unless they 
     are terminated earlier by the President or unless they are 
     extended under this section, except that such controls may be 
     adopted as multilateral controls under section 105 or 
     included in an embargo that is imposed by the President under 
     the International Emergency Economic Powers Act, the Trading 
     with the Enemy Act, or other provision of law other than this 
     title. Any extension or subsequent extension of the controls 
     under this section shall be for a period of not more than 1 
     year each. The controls shall expire at the end of each such 
     extension unless they are terminated earlier by the President 
     or unless they are further extended under this section, 
     except that such controls may be adopted as multilateral 
     controls under section 105 or included in an embargo 
     described in the first sentence of this subparagraph.
       (B) Exception for multilateral agreements.--Subparagraph 
     (A) shall not apply to controls imposed by the President in 
     order to fulfill obligations of the United States under 
     resolutions of the United Nations or under treaties to which 
     the United States is a party. If such a resolution or treaty 
     ceases to be in effect, controls imposed by the

[[Page H7567]]

     President pursuant to such resolution or treaty shall 
     immediately cease to be in effect.
       (4) Criteria.--Controls may be imposed, expanded, or 
     extended under this section only if the President determines 
     that--
       (A) the controls are necessary to further significantly the 
     nonproliferation, national security, or foreign policies of 
     the United States provided in section 103, the objective of 
     the controls is in the overall national interest of the 
     United States, and reasonable alternative means to the 
     controls are not available;
       (B) the controls are likely to make substantial progress 
     toward achieving the intended purpose of--
       (i) changing, modifying, or constraining the undesirable 
     conduct or policies of the country to which the controls 
     apply;
       (ii) denying access by the country to controlled items from 
     all sources;
       (iii) establishing multilateral cooperation to deny the 
     country access to controlled items from all sources; or
       (iv) denying exports or assistance that significantly 
     contributes to the proliferation of weapons of mass 
     destruction or other important military capabilities, 
     terrorism, or human rights abuses;
       (C) the proposed controls are compatible with the foreign 
     policy objectives of the United States and with overall 
     United States policy toward the country to which the controls 
     apply;
       (D) the reaction of other countries to the imposition, 
     expansion, or extension of such export controls by the United 
     States is not likely to render the controls ineffective in 
     achieving the intended purpose or to be counter-productive to 
     United States policy interests;
       (E) the effect of the proposed controls on the export 
     performance of the United States, the competitive position of 
     the United States as a supplier of items, or on the economic 
     well-being of individual United States companies and their 
     employees and communities does not exceed the benefit to the 
     United States foreign policy, nonproliferation, or national 
     security interests; and
       (F) the United States has the ability to enforce the 
     proposed controls effectively.
       (b) Consultation With Industry.--The Secretary shall 
     consult with and seek advice from affected United States 
     industries and export advisory committees appointed under 
     section 104(f) before the imposition, expansion, or extension 
     of any export control under this section.
       (c) Consultation With Other Countries.--When expanding or 
     extending export controls under this section (unless such 
     action is taken under subsection (a)(3)(B)), the Secretary of 
     State, in consultation with appropriate departments and 
     agencies, shall, at the earliest appropriate opportunity, 
     consult with the countries with which the United States 
     maintains export controls cooperatively, and with other 
     countries, as appropriate, to advise them of the reasons for 
     the action and to urge them to adopt similar controls.
       (d) Consultations With the Congress.--
       (1) Consultations.--The Secretary may impose, expand, or 
     extend export controls under this section only after 
     consultation with the Congress, including the Committee on 
     International Relations of the House of Representatives and 
     the Committee on Banking, Housing, and Urban Affairs of the 
     Senate.
       (2) Reports.--The Secretary may not impose or expand 
     controls under subsection (a) until the Secretary has 
     submitted to the Congress a report--
       (A) addressing each of the criteria set forth in subsection 
     (a)(4);
       (B) specifying the purpose of the controls;
       (C) describing the nature, the subjects, and the results 
     of, or plans for, the consultation with industry under 
     subsection (b) and with other countries under subsection (c);
       (D) specifying the nature and results of any alternative 
     means attempted to achieve the objectives of the controls, or 
     the reasons for imposing or expanding the controls without 
     attempting any such alternative means; and
       (E) describing the availability from other countries of 
     items comparable to the items subject to the controls, and 
     describing the nature and results of the efforts made to 
     secure the cooperation of foreign governments in controlling 
     the foreign availability of such comparable items.

     Such report shall also indicate how such controls will 
     further significantly the policies of the United States as 
     set forth in section 103 or will further its declared 
     international obligations.
       (e) Seeking Multilateral Support for Unilateral Controls.--
     The Secretary of State, in consultation with appropriate 
     departments and agencies, shall have a continuing duty to 
     seek support for controls imposed under this section by other 
     countries and by effective multilateral control regimes.
       (f) Procedures and Limitations on Emergency Controls.--
       (1) Cessation of emergency controls.--
       (A) In general.--Controls imposed under this section on 
     commodities, technology, or other information shall cease to 
     be in effect immediately upon--
       (i) the imposition of similarly restrictive controls under 
     section 105 on the same commodities, technology, or 
     information to the country or end user, or for the end use, 
     with respect to which the controls were imposed under this 
     section; or
       (ii) the imposition of an embargo, under the International 
     Emergency Economic Powers Act, the Trading with the Enemy 
     Act, or other provision of law, on exports to, and imports 
     from the country with respect to which the controls were 
     imposed under this section.
       (B) Conversion to multilateral agreements.--If the 
     President imposes controls on commodities, technology, or 
     other information to a country or end user, or for an end 
     use, under this section in order to fulfill obligations of 
     the United States under resolutions of the United Nations or 
     under a treaty to which the United States is a party, any 
     equivalent controls imposed prior thereto under this section 
     on the same commodities, technology, or information to the 
     same country or end user, or for the same end use, shall 
     immediately cease to be in effect.
       (2) Limitations on reimposition.--Controls which have 
     ceased to be in effect under subsection (a)(3), and which 
     have not been extended under subsection (g), may not be 
     reimposed by the President under subsection (a) for a period 
     of 6 months beginning on the date on which the original 
     controls expire, unless the President determines that 
     reimposition of controls is warranted due to significant 
     changes in circumstances since the expiration of the 
     controls.
       (g) Extension of Emergency Controls.--
       (1) Report.--If the President decides to extend controls 
     imposed under subsection (a), which are due to expire under 
     subsection (a)(3), the President shall, not later than 30 
     calendar days before the expiration of such controls, 
     transmit to the Congress a report on the proposed extension, 
     setting forth the reasons for the proposed extension in 
     detail and specifying the period of time, which may not 
     exceed 1 year, for which the controls are proposed to be 
     extended. In particular, such report shall--
       (A) contain determinations by the President--
       (i) that the controls are likely to continue to make 
     substantial progress toward achieving the intended purpose 
     of--

       (I) changing, modifying, or constraining the undesirable 
     conduct or policies of the country to which the controls 
     apply;
       (II) denying access by the country to controlled items from 
     all sources;
       (III) establishing multilateral cooperation to deny the 
     country access to controlled items from all sources; or
       (IV) denying exports or assistance that significantly 
     contributes to the proliferation of weapons of mass 
     destruction or other important military capabilities, 
     terrorism, or human rights abuses;

       (ii) that the impact of the controls has been compatible 
     with the foreign policy objectives of the United States and 
     with overall United States policy toward the controlled 
     country;
       (iii) that the reaction of other countries to the 
     imposition or expansion of the controls by the United States 
     has not rendered the controls ineffective in achieving the 
     intended purpose and have not been counterproductive to 
     United States policy interests;
       (iv) that the effect of the controls on the export 
     performance of the United States, the competitive position of 
     the United States as a supplier of items, and the economic 
     well-being of individual United States companies and their 
     employees and communities has not exceeded the benefit to the 
     United States foreign policy, nonproliferation, or national 
     security interests; and
       (v) that the United States has enforced the controls 
     effectively.
       (2) Further extensions of controls.--If, upon the 
     expiration of the controls extended under this subsection, 
     the President determines that a further extension of 
     emergency controls for an additional period of time of not 
     more than 1 year is necessary, paragraph (1) shall apply to 
     such further extension.
       (h) Effect on Other Authority.--
       (1) Embargo authority.--Nothing in this section shall be 
     construed to limit the authority of the President to impose 
     an embargo on exports to, and imports from, a specific 
     country under the International Emergency Economic Powers 
     Act, the Trading with the Enemy Act, or other provision of 
     law (other than this title). In any case in which the 
     President exercises any such authority to impose an embargo, 
     the requirements of this section shall not apply for so long 
     as such embargo is in effect.
       (2) Effect on existing embargoes.--(A) Nothing in this 
     section affects the authorities conferred upon the President 
     by section 5(b) of the Trading with the Enemy Act, which were 
     being exercised with respect to a country on July 1, 1977, as 
     a result of a national emergency declared by the President 
     before that date, and are being exercised on the date of the 
     enactment of this Act.
       (B) Nothing in this section affects the authorities 
     conferred upon the President by the International Economic 
     Powers Act or other provision of law (other than the Export 
     Administration Act of 1979), which were being exercised with 
     respect to a country before the date of the enactment of this 
     Act as a result of a national emergency declared by the 
     President before that date, and are being exercised with 
     respect to such country on such date of enactment.
       (i) Countries Supporting International Terrorism.--
       (1) Prohibition on exports.--(A) No export described in 
     subparagraph (B) may be made to any country the government of 
     which the Secretary of State has determined has repeatedly 
     provided support for acts of international terrorism.

[[Page H7568]]

       (B) The exports referred to in subparagraph (A) are--
       (i) of any commodity or technology the export of which is 
     controlled under this title pursuant to the Wassenaar 
     Arrangement, the Missile Technology Control Regime, or the 
     Australia Group, or controlled under this title pursuant to 
     section 309(c) of the Nuclear Non-Proliferation Act of 1978,
       (ii) of any other commodity or technology the export of 
     which is controlled under this title pursuant to multilateral 
     export control regimes in which the United States 
     participates, and
       (iii) of any commodity or technology which could make a 
     significant contribution to the military potential of a 
     country described in subparagraph (A), including its military 
     logistics capability, or could enhance the ability of such 
     country to support acts of international terrorism,

     other than food, medicine, or medical supplies that the 
     President determines will be used only for humanitarian 
     purposes. An individual validated license shall be required 
     for the export under this subparagraph of any such food, 
     medicine, or medical supplies.
       (C) Subsections (a)(3) and (b) shall not apply to exports 
     prohibited or restricted under this subsection.
       (D)(i) The Secretary shall maintain a list of commodities 
     and technology described in subparagraph (B)(iii). The 
     Secretary shall review the list of items on that list at 
     least annually. At the conclusion of the review, the 
     Secretary shall determine whether to remove items from the 
     list, change the specifications of items on the list, or add 
     items to the list, in order to ensure that the items on the 
     list meet the requirements of subparagraph (B)(iii).
       (ii) The procedures set forth in subparagraphs (A) and (C) 
     of section 105(g)(3) shall apply to reviews under clause (i) 
     of the list of items described in subparagraph (B)(iii) to 
     the same extent as such section applies to reviews of the 
     control list under section 105(g).
       (2) Notification of congress of licenses issued.--The 
     Secretary and the Secretary of State shall notify the Speaker 
     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 under this title for exports to a country the 
     government of which the Secretary of State has determined has 
     repeatedly provided support for acts of international 
     terrorism.
       (3) Publication of determinations.--Each determination of 
     the Secretary of State under paragraph (1)(A) shall be 
     published in the Federal Register.
       (4) Rescission of determinations.--A determination made by 
     the Secretary of State under paragraph (1)(A) may not be 
     rescinded unless the President submits to the Speaker of the 
     House of Representatives and the chairman of the Committee on 
     Banking, Housing, and Urban Affairs and the chairman of the 
     Committee on Foreign Relations of the Senate--
       (A) before the proposed rescission would take effect, a 
     report certifying that--
       (i) there has been a fundamental change in the leadership 
     and policies of the government of the country concerned;
       (ii) that government is not supporting acts of 
     international terrorism; and
       (iii) that government has provided assurances that it will 
     not support acts of international terrorism in the future; or
       (B) at least 45 days before the proposed rescission would 
     take effect, a report justifying the rescission and 
     certifying that--
       (i) the government concerned has not provided any support 
     for international terrorism during the preceding 6-month 
     period; and
       (ii) the government concerned has provided assurances that 
     it will not support acts of international terrorism in the 
     future.
       (5) Waiver of prohibitions.--The President may waive the 
     prohibitions contained in paragraph (1)(A) with respect to a 
     specific transaction if--
       (A) the President determines that the transaction is 
     essential to the national security interests of the United 
     States; and
       (B) not less than 30 days prior to the proposed 
     transaction, the President--
       (i) consults with the Committee on International Relations 
     of the House of Representatives and the Committee on Banking, 
     Housing, and Urban Affairs of the Senate regarding the 
     proposed transaction; and
       (ii) submits to the Speaker of the House of Representatives 
     and the chairman of the Committee on Banking, Housing, and 
     Urban Affairs of the Senate a report containing--

       (I) the name of any country involved in the proposed 
     transaction, the identity of any recipient of the items to be 
     provided pursuant to the proposed transaction, and the 
     anticipated use of those items;

       (II) a description of the items involved in the proposed 
     transaction (including their market value) and the actual 
     sale price at each step in the transaction;
       (III) the reasons why the proposed transaction is essential 
     to the national security interests of the United States and 
     the justification for the proposed transaction;
       (IV) the date on which the proposed transaction is expected 
     to occur; and
       (V) the name of any foreign governments involved in the 
     proposed transaction.

     To the extent possible, the information specified in clause 
     (ii) of subparagraph (B) shall be provided in unclassified 
     form.
       (6) Multilateral regimes.--The Secretary of State, in 
     consultation with appropriate departments and agencies, shall 
     seek support by other countries and by effective multilateral 
     control regimes of controls imposed by this subsection.
       (7) Effect on other laws.--The provisions of this 
     subsection do not affect any other provision of law to the 
     extent such other provision imposes greater restrictions on 
     exports to any country the government of which the Secretary 
     of State has determined has repeatedly provided support for 
     acts of international terrorism than are imposed under this 
     subsection.
       (j) Crime Control Instruments.--
       (1) License required.--Crime control and detection 
     instruments and equipment shall be approved for export by the 
     Secretary only pursuant to an export license. Paragraphs 
     (3)(A) and (4) of subsection (a) shall not apply to the 
     export controls imposed by this subsection.
       (2) Concurrence of secretary of state.--
       (A) Items on control index.--Any determination of the 
     Secretary of what commodities or technology shall be included 
     on the control index as a result of the export restrictions 
     imposed by this subsection shall be made with the concurrence 
     of the Secretary of State.
       (B) Action on license application.--Any determination of 
     the Secretary to approve or deny an export license 
     application to export crime control or detection instruments 
     or equipment shall be made with the concurrence of the 
     Secretary of State.
       (3) Dispute resolution.--If the Secretary of State does not 
     agree with the Secretary with respect to any determination 
     under paragraph (2), the Secretary of State shall refer the 
     matter to the President for resolution.
       (4) Exceptions.--The provisions of this subsection shall 
     not apply with respect to exports to countries which are 
     members of the North Atlantic Treaty Organization or to 
     Japan, Australia, or New Zealand, or to such other countries 
     as the President shall designate consistent with the purposes 
     of this subsection and section 502B of the Foreign Assistance 
     Act of 1961.
       (k) Spare Parts.--At the same time as the President imposes 
     or expands export controls under this section, the President 
     shall determine whether such export controls will apply to 
     replacement parts or parts in commodities subject to such 
     export controls.
       (l) Effect on Other Laws.--None of the prohibitions 
     contained in this section shall apply to any transaction 
     subject to the reporting requirements of title V of the 
     National Security Act of 1947.

     SEC. 107. SHORT SUPPLY CONTROLS.

       (a) Authority.--
       (1) In general.--In order to carry out the policy set forth 
     in section 103(4), the President may prohibit or curtail the 
     export of any commodities subject to the jurisdiction of the 
     United States or exported by any person subject to the 
     jurisdiction of the United States. In curtailing exports to 
     carry out the policy set forth in section 103(4), the 
     President shall allocate a portion of export licenses on the 
     basis of factors other than a prior history of exportation. 
     Such factors shall include the extent to which a country 
     engages in equitable trade practices with respect to United 
     States commodities and treats the United States equitably in 
     times of short supply.
       (2) Public participation.--Upon imposing quantitative 
     restrictions on exports of any commodities to carry out the 
     policy set forth in section 103(4), the Secretary shall 
     include in a notice published in the Federal Register with 
     respect to such restrictions an invitation to all interested 
     parties to submit written comments within 15 days after the 
     date of publication on the impact of such restrictions and 
     the method of licensing used to implement them.
       (3) License fees.--In imposing export controls under this 
     section, the President's authority shall include, but not be 
     limited to, the imposition of export license fees.
       (b) Monitoring.--
       (1) In general.--In order to carry out the policy set forth 
     in section 103(4), the Secretary shall monitor exports, and 
     contracts for exports, of any commodity (other than a 
     commodity which is subject to the reporting requirements of 
     section 602 of the Agricultural Trade Act of 1978 (7 U.S.C. 
     5712)) when the volume of such exports in relation to 
     domestic supply contributes, or may contribute, to an 
     increase in domestic prices or a domestic shortage, and such 
     price increase or shortage has, or may have, a serious 
     adverse impact on the economy or any sector thereof. Any such 
     monitoring shall commence at a time adequate to assure that 
     the monitoring will result in a data base sufficient to 
     enable policies to be developed, in accordance with section 
     103(4), to mitigate a short supply situation or serious 
     inflationary price rise or, if export controls are needed, to 
     permit imposition of such controls in a timely manner. 
     Information which the Secretary requires to be furnished in 
     effecting such monitoring shall be confidential, except as 
     provided in paragraph (2).
       (2) Reports on monitoring.--The results of monitoring under 
     paragraph (1) shall, to the extent practicable, be aggregated 
     and included in weekly reports setting forth, with respect to 
     each item monitored, actual and anticipated exports, the 
     destination by country, and the domestic and worldwide price, 
     supply, and demand. Such reports may be made monthly if the 
     Secretary determines that there is insufficient information 
     to justify weekly reports.

[[Page H7569]]

       (3) Consultation with secretary of energy.--The Secretary 
     shall consult with the Secretary of Energy to determine 
     whether monitoring or export controls under this section are 
     warranted with respect to exports of facilities, machinery, 
     or equipment normally and principally used, or intended to be 
     used, in the production, conversion, or transportation of 
     fuels and energy (except nuclear energy), including, but not 
     limited to--
       (A) drilling rigs, platforms, and equipment;
       (B) petroleum refineries, and natural gas processing, 
     liquefaction, and gasification plants;
       (C) facilities for production of synthetic natural gas or 
     synthetic crude oil;
       (D) oil and gas pipelines, pumping stations, and associated 
     equipment; and
       (E) vessels for transporting oil, gas, coal, and other 
     fuels.
       (c) Petitions for Monitoring or Controls of Metallic 
     Materials.--
       (1) In general.--(A) Any entity, including a trade 
     association, firm, or certified or recognized union or group 
     of workers, that is representative of an industry or a 
     substantial segment of an industry that processes metallic 
     materials capable of being recycled may transmit a written 
     petition to the Secretary requesting the monitoring of 
     exports or the imposition of export controls, or both, with 
     respect to any such material, in order to carry out the 
     policy set forth in section 103(4).
       (B) Each petition shall be in such form as the Secretary 
     shall prescribe and shall contain information in support of 
     the action requested. The petition shall include any 
     information reasonably available to the petitioner indicating 
     that each of the criteria set forth in paragraph (3)(A) is 
     satisfied.
       (2) Publication of notice.--Within 15 days after receipt of 
     any petition described in paragraph (1), the Secretary shall 
     publish a notice in the Federal Register. The notice shall--
       (A) include the name of the material that is the subject to 
     the petition;
       (B) include the schedule B number of the material as set 
     forth in the Statistical Classification of Domestic and 
     Foreign Commodities Exported from the United States;
       (C) indicate whether the petition is requesting that 
     controls or monitoring, or both, be imposed with respect to 
     the exportation of such material; and
       (D) provide that interested persons shall have a period of 
     30 days beginning on the date on which the notice is 
     published to submit to the Secretary written data, views, or 
     arguments, with or without opportunity for oral presentation, 
     with respect to the matter involved.

     At the request of the petitioner or any other entity 
     described in paragraph (1)(A) with respect to the material 
     which is the subject of the petition, or at the request of 
     any entity representative of producers or exporters of such 
     material, the Secretary shall conduct public hearings with 
     respect to the subject of the petition, in which case the 30-
     day period may be extended to 45 days.
       (3) Determination of monitoring or controls.--(A) Within 45 
     days after the end of the 30- or 45-day period described in 
     paragraph (2), as the case may be, the Secretary shall 
     determine whether to impose monitoring or controls, or both, 
     on the export of the material that is the subject of the 
     petition in order to carry out the policy set forth in 
     section 103(4). In making such determination, the Secretary 
     shall determine whether--
       (i) there has been a significant increase, in relation to a 
     specific period of time, in exports of such material in 
     relation to domestic supply and demand;
       (ii) there has been a significant increase in domestic 
     price of such material or a domestic shortage of such 
     material relative to demand;
       (iii) exports of such material are as important as any 
     other cause of a domestic price increase or shortage relative 
     to demand found under clause (ii);
       (iv) a domestic price increase or shortage relative to 
     demand found under clause (ii) has significantly adversely 
     affected or may significantly adversely affect the national 
     economy or any sector thereof, including a domestic industry; 
     and
       (v) monitoring or controls, or both, are necessary in order 
     to carry out the policy set forth in section 103(4).
       (B) The Secretary shall publish in the Federal Register a 
     detailed statement of the reasons for the Secretary's 
     determination under subparagraph (A) of whether to impose 
     monitoring or controls, or both, including the findings of 
     fact in support of that determination.
       (4) Publication of regulations.--Within 15 days after 
     making a determination under paragraph (3) to impose 
     monitoring or controls on the export of a material, the 
     Secretary shall publish in the Federal Register proposed 
     regulations with respect to such monitoring or controls. 
     Within 30 days after the publication of such proposed 
     regulations, and after considering any public comments on the 
     proposed regulations, the Secretary shall publish and 
     implement final regulations with respect to such monitoring 
     or controls.
       (5) Consolidation of petitions.--For purposes of publishing 
     notices in the Federal Register and scheduling public 
     hearings pursuant to this subsection, the Secretary may 
     consolidate petitions, and responses to such petitions, which 
     involve the same or related materials.
       (6) Subsequent petitions on same material.--If a petition 
     with respect to a particular material or group of materials 
     has been considered in accordance with all the procedures 
     described in this subsection, the Secretary may determine, in 
     the absence of significantly changed circumstances, that any 
     other petition with respect to the same material or group of 
     materials which is filed within 6 months after the 
     consideration of the prior petition has been completed does 
     not merit complete consideration under this subsection.
       (7) Precedence of procedures over other reviews.--The 
     procedures and time limits set forth in this subsection with 
     respect to a petition filed under this subsection shall take 
     precedence over any review undertaken at the initiative of 
     the Secretary with respect to the same subject as that of the 
     petition.
       (8) Temporary controls.--The Secretary may impose 
     monitoring or controls, on a temporary basis, on the export 
     of a metallic material after a petition is filed under 
     paragraph (1)(A) with respect to that material but before the 
     Secretary makes a determination under paragraph (3) with 
     respect to that material only if--
       (A) the failure to take such temporary actions would result 
     in irreparable harm to the entity filing the petition, or to 
     the national economy or segment thereof, including a domestic 
     industry, and
       (B) the Secretary considers such action to be necessary to 
     carry out the policy set forth in section 103(4).
       (9) Other authority not affected.--The authority under this 
     subsection shall not be construed to affect the authority of 
     the Secretary under any other provision of this title, except 
     that if the Secretary determines, on the Secretary's own 
     initiative, to impose monitoring or controls, or both, on the 
     export of metallic materials capable of being recycled, under 
     the authority of this section, the Secretary shall publish 
     the reasons for such action in accordance with paragraph 
     (3)(A) and (B).
       (10) Submission and consideration of additional 
     information.--Nothing contained in this subsection shall be 
     construed to preclude submission on a confidential basis to 
     the Secretary of information relevant to a decision to impose 
     or remove monitoring or controls under the authority of this 
     title, or to preclude consideration of such information by 
     the Secretary in reaching decisions required under this 
     subsection. The provisions of this paragraph shall not be 
     construed to affect the applicability of section 552(b) of 
     title 5, United States Code.
       (d) Agricultural Commodities.--
       (1) Approval of controls by secretary of agriculture.--The 
     authority conferred by this section shall not be exercised 
     with respect to any agricultural commodity, including fats 
     and oils, forest products, or animal hides or skins, without 
     the approval of the Secretary of Agriculture. The Secretary 
     of Agriculture shall not approve the exercise of such 
     authority with respect to any such commodity during any 
     period for which the supply of such commodity is determined 
     by the Secretary of Agriculture to be in excess of the 
     requirements of the domestic economy, except to the extent 
     the President determines that the controls on such 
     agricultural commodities are also imposed under section 106. 
     The Secretary of Agriculture shall, by exercising the 
     authority which the Secretary of Agriculture has under other 
     applicable provisions of law, collect data with respect to 
     export sales of animal hides and skins.
       (2) Protection of stored commodities from future 
     controls.--Upon approval of the Secretary, in consultation 
     with the Secretary of Agriculture, agricultural commodities 
     purchased by or for use in a foreign country may remain in 
     the United States for export at a later date free from any 
     quantitative limitations on export which may be imposed to 
     carry out the policy set forth in section 103(4) subsequent 
     to such approval. The Secretary may not grant such approval 
     unless the Secretary receives adequate assurance and, in 
     conjunction with the Secretary of Agriculture, finds--
       (A) that such commodities will eventually be exported,
       (B) that neither the sale nor export thereof will result in 
     an excessive drain of scarce material and have a serious 
     domestic inflationary impact,
       (C) that storage of such commodities in the United States 
     will not unduly limit the space available for storage of 
     domestically owned commodities, and
       (D) that the purpose of such storage is to establish a 
     reserve of such commodities for later use, not including 
     resale to or use by another country.

     The Secretary may issue such regulations as may be necessary 
     to carry out this paragraph.
       (3) Procedures for imposing controls.--(A) If the President 
     imposes export controls on any agricultural commodity under 
     section 106 or this section, the President shall immediately 
     transmit a report on such action to the Congress, setting 
     forth the reasons for the controls in detail and specifying 
     the period of time, which may not exceed 1 year, that the 
     controls are proposed to be in effect. If the Congress, 
     within 60 days after the date of the receipt of the report, 
     enacts a joint resolution pursuant to paragraph (4) approving 
     the imposition of the export controls, then such controls 
     shall remain in effect for the period specified in the 
     report, or until terminated by the President, whichever 
     occurs first. If the Congress, within 60 days

[[Page H7570]]

     after the date of its receipt of such report, fails to adopt 
     a joint resolution approving such controls, then such 
     controls shall cease to be effective upon the expiration of 
     that 60-day period.
       (B) The provisions of subparagraph (A) and paragraph (4) 
     shall not apply to export controls--
       (i) which are extended under this title if the controls, 
     when imposed, were approved by the Congress under 
     subparagraph (A) and paragraph (4); or
       (ii) which are imposed with respect to a country as part of 
     the prohibition or curtailment of all exports to that 
     country.
       (4) Expedited procedures.--(A) For purposes of this 
     paragraph, the term ``joint resolution'' means only a joint 
     resolution the matter after the resolving clause of which is 
     as follows: ``That pursuant to section 107(d)(3) of the 
     Export Administration Act of 1996, the President may impose 
     export controls as specified in the report submitted to the 
     Congress on ______.'', with the blank space being filled with 
     the appropriate date.
       (B) On the day on which a report is submitted to the House 
     of Representatives and the Senate under paragraph (3), a 
     joint resolution with respect to the export controls 
     specified in such report shall be introduced (by request) in 
     the House by either the chairman of the Committee on 
     International Relations, for the chairman and the ranking 
     minority member of the Committee, or by Members of the House 
     designated by the chairman and ranking minority member; and 
     shall be introduced (by request) in the Senate by the 
     majority leader of the Senate, for the majority leader and 
     the minority leader of the Senate, or by Members of the 
     Senate designated by the majority leader and minority leader 
     of the Senate. If either House is not in session on the day 
     on which such a report is submitted, the joint resolution 
     shall be introduced in that House, as provided in the 
     preceding sentence, on the first day thereafter on which that 
     House is in session.
       (C) If the committee of either House to which a joint 
     resolution has been referred has not reported the joint 
     resolution at the end of 30 days after its referral, the 
     committee shall be discharged from further consideration of 
     the resolution.
       (D) A joint resolution under this paragraph shall be 
     considered in the Senate in accordance with the provisions of 
     section 601(b)(4) of the International Security Assistance 
     and Arms Export Control Act of 1976. For the purpose of 
     expediting the consideration and passage of joint resolutions 
     reported to the House of Representatives by the Committee on 
     International Relations under this paragraph, a motion to 
     proceed to the consideration in the House of any such joint 
     resolution shall be considered as highly privileged if 
     offered by the chairman of the committee or a designee on or 
     after the third day the report on the joint resolution has 
     been available to Members pursuant to clause 2(l)(6) of rule 
     XI of the Rules of the House of Representatives. The motion 
     shall not be subject to debate or to intervening motion or 
     otherwise subject to points of order, nor shall it be in 
     order to move to reconsider the vote by which the motion is 
     agreed to or not agreed to. If the motion is agreed to, the 
     joint resolution shall be considered in the House and 
     debatable for not to exceed two hours equally divided and 
     controlled by the chairman and ranking minority member of the 
     committee. The previous question shall be considered as 
     ordered on the joint resolution to final passage without 
     intervening motion.
       (E) In the case of a joint resolution described in 
     subparagraph (A), if, before the passage by one House of a 
     joint resolution of that House, that House receives a 
     resolution with respect to the same matter from the other 
     House, then--
       (i) the procedure in that House shall be the same as if no 
     joint resolution has been received from the other House; but
       (ii) the vote on final passage shall be on the joint 
     resolution of the other House.
       (5) Computation of time periods.--In the computation of the 
     period of 60 days referred to in paragraph (3)(A) and the 
     period of 30 days referred to in paragraph (4)(C), there 
     shall be excluded the days on which either House of Congress 
     is not in session because of an adjournment of more than 3 
     days to a day certain or because of an adjournment of the 
     Congress sine die.
       (6) Rulemaking Power.--The provisions of this subsection 
     are enacted by the Congress--
       (A) as an exercise of the rulemaking power of the House of 
     Representatives and the Senate, respectively, and as such, 
     they shall be considered as part of the rules of each House, 
     respectively, or of that House to which they specifically 
     apply, and such rules shall supersede other rules only to the 
     extent that they are inconsistent therewith; and
       (B) with full recognition of the constitutional right of 
     either House to change such rules (so far as relating to such 
     House) at any time, in the same manner, and to the same 
     extent as in the case of any other rule of such House.
       (e) Barter Agreements.--
       (1) Exemption from controls.--The exportation pursuant to a 
     barter agreement of any commodities which may lawfully be 
     exported from the United States, for any commodities which 
     may lawfully be imported into the United States, may be 
     exempted, in accordance with paragraph (2), from any 
     quantitative limitation on exports (other than any reporting 
     requirement) imposed to carry out the policy set forth in 
     section 103(4).
       (2) Criteria for exemption.--The Secretary shall grant an 
     exemption under paragraph (1) if the Secretary finds, after 
     consultation with the appropriate department or agency of the 
     United States, that--
       (A) for the period during which the barter agreement is to 
     be performed--
       (i) the average annual quantity of the commodities to be 
     exported pursuant to the barter agreement will not be 
     required to satisfy the average amount of such commodities 
     estimated to be required annually by the domestic economy and 
     will be surplus thereto; and
       (ii) the average annual quantity of the commodities to be 
     imported will be more than the average amount of such 
     commodities estimated to be required annually to supplement 
     domestic production; and
       (B) the parties to such barter agreement have demonstrated 
     adequately that they intend, and have the capacity, to 
     perform such barter agreement.
       (3) Definition.--For purposes of this subsection, the term 
     ``barter agreement'' means any agreement which is made for 
     the exchange, without monetary consideration, of any 
     commodities produced in the United States for any commodities 
     produced outside of the United States.
       (4) Applicability.--This subsection shall apply only with 
     respect to barter agreements entered into after September 30, 
     1979.
       (f) Effect of Controls on Existing Contracts.--
       (1) Western red cedar.--Any export controls imposed under 
     section 7(i) of the Export Administration Act of 1979 or this 
     section shall not affect any contract to harvest unprocessed 
     western red cedar from State lands which was entered into 
     before October 1, 1979, and the performance of which would 
     make the red cedar available for export.
       (2) Other controls.--Any export controls imposed under this 
     section on any agricultural commodity (including fats, oils, 
     forest products, and animal hides and skins), or on any 
     fishery product, shall not affect any contract to export 
     entered into before the date on which such controls are 
     imposed. For purposes of this paragraph, the term ``contract 
     to export'' includes, but is not limited to, an export sales 
     agreement and an agreement to invest in an enterprise which 
     involves the export of commodities or technology.
       (g) Oil Exports for Use by United States Military 
     Facilities.--For purposes of this section, and for purposes 
     of any export controls imposed under this title, shipments of 
     crude oil, refined petroleum products, or partially refined 
     petroleum products from the United States for use by the 
     Department of Defense or United States-supported 
     installations or facilities shall not be considered to be 
     exports.

     SEC. 108. FOREIGN BOYCOTTS.

       (a) Prohibitions and Exceptions.--
       (1) Prohibitions.--In order to carry out the policies set 
     forth in section 103(9), 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 
     which is friendly to the United States and which is not 
     itself the object of any form of boycott pursuant to United 
     States law or regulation:
       (A) Refusing, or requiring any other person to refuse, to 
     do business with or in the boycotted country, with any 
     business concern organized under the laws of the boycotted 
     country, with any national or resident of the boycotted 
     country, or with any other person, pursuant to an agreement 
     with, a requirement of, or a request from or on behalf of the 
     boycotting country. 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, does not indicate the 
     existence of the intent required to establish a violation of 
     regulations issued to carry out this subparagraph.
       (B) Refusing, or requiring any other person to refuse, to 
     employ or otherwise discriminating against any United States 
     person on the basis of the race, religion, sex, or national 
     origin of that person or of any owner, officer, director, or 
     employee of such person.
       (C) Furnishing information with respect to the race, 
     religion, sex, or national origin of any United States person 
     or of any owner, officer, director, or employee of such 
     person.
       (D) Furnishing information 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. Nothing in 
     this paragraph shall prohibit the furnishing of normal 
     business information in a commercial context as defined by 
     the Secretary.
       (E) Furnishing information about whether any person is a 
     member of, has made a contribution to, or is otherwise 
     associated with or involved in the activities of any 
     charitable or fraternal organization which supports the 
     boycotted country.

[[Page H7571]]

       (F) Paying, honoring, confirming, or otherwise implementing 
     a letter of credit which contains any condition or 
     requirement compliance with which is prohibited by 
     regulations issued pursuant to this paragraph, and no United 
     States person shall, as a result of the application of this 
     paragraph, be obligated to pay or otherwise honor or 
     implement such letter of credit.
       (2) Exceptions.--Regulations issued pursuant to paragraph 
     (1) shall provide exceptions for--
       (A) complying or agreeing to comply with requirements--
       (i) prohibiting the import of commodities or services from 
     the boycotted country or commodities produced or services 
     provided by any business concern organized under the laws of 
     the boycotted country or by nationals or residents of the 
     boycotted country; or
       (ii) prohibiting the shipment of commodities to the 
     boycotting country on a carrier of the boycotted country, or 
     by a route other than that prescribed by the boycotting 
     country or the recipient of the shipment;
       (B) complying or agreeing 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 no information 
     knowingly furnished or conveyed in response to such 
     requirements may be stated in negative, blacklisting, or 
     similar exclusionary terms, other than with respect to 
     carriers or route of shipment as may be permitted by such 
     regulations in order to comply with precautionary 
     requirements protecting against war risks and confiscation;
       (C) complying or agreeing to comply in the normal course of 
     business with the unilateral and specific selection by a 
     boycotting country, or national or resident thereof, of 
     carriers, insurers, suppliers of services to be performed 
     within the boycotting country, or specific commodities which, 
     in the normal course of business, are identifiable by source 
     when imported into the boycotting country;
       (D) complying or agreeing to comply with export 
     requirements of the boycotting country relating to shipments 
     or transshipment of exports to the boycotted country, to any 
     business concern of or organized under the laws of the 
     boycotted country, or to any national or resident of the 
     boycotted country;
       (E) compliance by an individual or agreement by an 
     individual to comply with the immigration or passport 
     requirements of any country with respect to such individual 
     or any member of such individual's family or with requests 
     for information regarding requirements of employment of such 
     individual within the boycotting country; and
       (F) compliance by a United States person resident in a 
     foreign country or agreement by such person to comply with 
     the laws of the country with respect to such 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, as may be defined 
     by such regulations.
       (3) Limitation on exceptions.--Regulations issued pursuant 
     to paragraphs (2)(C) and (2)(F) shall not provide exceptions 
     from paragraphs (1)(B) and (1)(C).
       (4) Antitrust and civil rights laws not affected.--Nothing 
     in the subsection may be construed to supersede or limit the 
     operation of the antitrust or civil rights laws of the United 
     States.
       (5) Evasion.--This section shall apply 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 as implemented by the regulations issued 
     pursuant to this subsection, and such regulations shall 
     expressly provide that the exceptions set forth in paragraph 
     (2) shall 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.
       (b) Additional Regulations and Reports.--
       (1) Regulations.--In addition to the regulations issued 
     pursuant to subsection (a), regulations issued under section 
     106 shall implement the policies set forth in section 103(9).
       (2) Reports by united states persons.--Such regulations 
     shall require that any United States person receiving a 
     request for the furnishing of information, the entering into 
     or implementing of agreements, or the taking of any other 
     action referred to in section 103(9) shall report that fact 
     to the Secretary, together with such other information 
     concerning such request as the Secretary may require, for 
     such action as the Secretary considers appropriate for 
     carrying out the policies of that section. Such person shall 
     also report to the Secretary whether such person intends to 
     comply and whether such person has complied with such 
     request. Any report filed pursuant to this paragraph shall be 
     made available promptly for public inspection and copying, 
     except that information regarding the quantity, description, 
     and value of any commodities or technology to which such 
     report relates may be kept confidential if the Secretary 
     determines that disclosure thereof would place the United 
     States person involved at a competitive disadvantage. The 
     Secretary shall periodically transmit summaries of the 
     information contained in such reports to the Secretary of 
     State for such action as the Secretary of State, in 
     consultation with the Secretary, considers appropriate for 
     carrying out the policies set forth in section 103(9).
       (c) Preemption.--The provisions of this section and the 
     regulations issued under this section shall preempt any law, 
     rule, or regulation which--
       (1) is a law, rule, or regulation of any of the several 
     States or the District of Columbia, or any of the territories 
     or possessions of the United States, or of any governmental 
     subdivision thereof; and
       (2) pertains to participation in, compliance with, 
     implementation of, or the furnishing of information regarding 
     restrictive trade practices or boycotts fostered or imposed 
     by foreign countries against other countries.

     SEC. 109. PROCEDURES FOR PROCESSING EXPORT LICENSE 
                   APPLICATIONS; OTHER INQUIRIES.

       (a) Primary Responsibility of the Secretary.--
       (1) In general.--All export license applications required 
     under this title shall be submitted by the applicant to the 
     Secretary. Subject to the procedures provided in this 
     section--
       (A) if referral of an application to other departments or 
     agencies for review is not required, the Secretary shall, 
     within 9 days after receiving the application, issue a 
     license or notify the applicant of the intent to deny the 
     application; or
       (B) if referral of the application to other departments or 
     agencies for review is required, the Secretary shall, within 
     30 days after referral of any such application to other 
     departments or agencies--
       (i) issue a license;
       (ii) notify the applicant of the intent to deny the 
     application; or
       (iii) ensure that the application is subject to the 
     interagency resolution process set forth in subsection (d).
       (2) Recommendations of other agencies.--The Secretary shall 
     seek information and recommendations from the Department of 
     Defense and other departments and agencies of the United 
     States that are identified by the President as being 
     concerned with factors having an important bearing on exports 
     administered under this title. Such departments and agencies 
     shall cooperate fully and promptly in rendering information 
     and recommendations.
       (3) Procedures.--In guidance and regulations that implement 
     this section, the Secretary shall describe the procedures 
     required by this section, the responsibilities of the 
     Secretary and of other departments and agencies in reviewing 
     applications, the rights of the applicant, and other relevant 
     matters affecting the review of license applications.
       (4) Calculation of processing times.--In calculating the 
     processing times set forth in this section, the Secretary 
     shall use calendar days, except that if the final day for a 
     required action falls on a weekend or holiday, that action 
     shall be taken no later than the following business day.
       (5) Reliability of parties.--In reviewing applications for 
     export licenses, the Secretary may in each case consider the 
     reliability of the parties to the proposed export. In making 
     such an evaluation, the Secretary may consider all sources of 
     information, including results of other United States 
     Government actions, such as actions by the Committee on 
     Foreign Investment in the United States, investigations of 
     diversions from authorized end uses or end users, and 
     intelligence information, except that the consideration of 
     such information in connection with the evaluation of the 
     reliability of parties shall not authorize the direct or 
     indirect disclosure of classified information or sources and 
     methods of gathering classified information and shall not 
     confer a right on private parties to have access to 
     classified information.
       (b) Initial Screening.--
       (1) Upon receipt of application.--Upon receipt of an export 
     license application, the Secretary shall enter and maintain 
     in the records of the Department of Commerce information 
     regarding the receipt and status of the application.
       (2) Initial procedures.--Promptly upon receiving any 
     license application, the Secretary shall--
       (A) contact the applicant if the application is improperly 
     completed or if additional information is required, and hold 
     the application for a reasonable time while the applicant 
     provides the necessary corrections or information, and such 
     time shall not be included in calculating the time periods 
     prescribed in this section;
       (B) refer the application, including all information 
     submitted by the applicant, and all necessary recommendations 
     and analyses by the Secretary to the Department of Defense 
     and other departments and agencies identified by the 
     President under subsection (a)(2); and
       (C) ensure that the classification stated on the 
     application for the export items is correct, return the 
     application if a license is not required, and, if referral to 
     other departments or agencies is not required, grant the 
     application or notify the applicant of the Secretary's intent 
     to deny the application.
     In the event that the head of a department or agency 
     determines that certain types of applications need not be 
     referred to the department or agency, such department or

[[Page H7572]]

     agency head shall notify the Secretary of the specific types 
     of such applications that the department or agency does not 
     wish to review.
       (c) Action by Other Departments and Agencies.--
       (1) Referral to other agencies.--The Secretary shall 
     promptly refer license applications to departments and 
     agencies under subsection (b) to make recommendations and 
     provide information to the Secretary.
       (2) Responsibility of referral agencies.--The Department of 
     Defense and other reviewing departments and agencies shall 
     organize their resources and units to plan for the prompt and 
     expeditious internal dissemination of export license 
     applications, if necessary, so as to avoid delays in 
     responding to the referral of applications.
       (3) Additional information requests.--Each department or 
     agency to which a license application is referred shall 
     specify to the Secretary any information that is not in the 
     application that would be required for the department or 
     agency to make a determination with respect to the 
     application, and the Secretary shall promptly request such 
     information from the applicant. The time that may elapse 
     between the date the information is requested by that 
     department or agency and the date the information is received 
     by that department or agency shall not be included in 
     calculating the time periods prescribed in this section.
       (4) Time period for action by referral departments and 
     agencies.--Within 30 days after receiving a referral of an 
     application under this section, the department or agency 
     concerned shall provide the Secretary with a recommendation 
     either to approve the license or to deny the license. A 
     recommendation that the Secretary deny a license shall 
     include a statement of reasons for the recommendation that 
     are consistent with the provisions of this title, and shall 
     cite both the specific statutory and the regulatory basis for 
     the recommendation. A department or agency that fails to 
     provide a recommendation in accordance with this paragraph 
     within that 30-day period shall be deemed to have no 
     objection to the decision of the Secretary on the 
     application.
       (d) Interagency Resolution.--
       (1) Initial resolution.--The Secretary shall establish, 
     select the chairperson of, and determine procedures for an 
     interagency committee to review initially all license 
     applications on which the departments and agencies reviewing 
     the applications under this section are not in agreement. The 
     chairperson of such committee shall consider the 
     recommendations of the departments and agencies reviewing a 
     particular application and inform them of his or her decision 
     on the application, which may include a decision that the 
     particular application requires further consideration under 
     the procedures established under paragraph (2). An 
     application may also be referred to further consideration 
     under the procedures established under paragraph (2) if an 
     appeal from the chairperson's decision is made in writing by 
     an official of the department or agency concerned who is 
     appointed by the President by and with the advice and consent 
     of the Senate, or an officer properly acting in such 
     capacity.
       (2) Further resolution.--The President shall establish a 
     process for the further review and determination of export 
     license applications pursuant to a decision by the 
     chairperson under paragraph (1) or an appeal by a department 
     or agency under paragraph (1). Such process shall--
       (A) be chaired by the Secretary or his or her designee;
       (B) ensure that license applications are resolved or 
     referred to the President no later than 90 days after the 
     date the license application is initially received by the 
     Secretary;
       (C) provide that a department or agency dissenting from the 
     decision reached under subparagraph (B) may appeal the 
     decision to the President; and
       (D) provide that a department or agency that fails to take 
     a timely position, citing the specific statutory and 
     regulatory bases for a denial, shall be deemed to have no 
     objection to the pending decision.
       (e) Actions by the Secretary if Application Denied.--In 
     cases where the Secretary has determined that an application 
     should be denied, the applicant shall be informed in writing 
     of--
       (1) the determination to deny;
       (2) the specific statutory and regulatory bases for the 
     proposed denial;
       (3) what, if any, modifications in or restrictions on the 
     items for which the license was sought would allow such 
     export to be compatible with export controls imposed under 
     this title, and which officer or employee of the Department 
     of Commerce would be in a position to discuss modifications 
     or restrictions with the applicant and the specific statutory 
     and regulatory bases for imposing such modifications or 
     restrictions;
       (4) to the extent consistent with the national security and 
     foreign policy of the United States, the specific 
     considerations that led to the determination to deny the 
     application; and
       (5) the availability of appeal procedures.
     The Secretary shall allow the applicant 20 days to respond to 
     the determination before the license application is denied.
       (f) Exceptions From Required Time Periods.--The following 
     actions related to processing an application shall not be 
     included in calculating the time periods prescribed in this 
     section:
       (1) Agreement of the applicant.--Delays upon which the 
     Secretary and the applicant mutually agree.
       (2) Prelicense checks.--A prelicense check that may be 
     required to establish the identity and reliability of the 
     recipient of items controlled under this title, if--
       (A) the need for the prelicense check is determined by the 
     Secretary, or by another department or agency if the request 
     for the prelicense check is made by such department or 
     agency;
       (B) the request for the prelicense check is sent by the 
     Secretary within 5 days after the determination that the 
     prelicense check is required; and
       (C) the analysis of the result of the prelicense check is 
     completed by the Secretary within 5 days.
       (3) Requests for government-to-government assurances.--Any 
     request by the Secretary or another department or agency for 
     government-to-government assurances of suitable end uses of 
     items approved for export, when failure to obtain such 
     assurances would result in rejection of the application, if--
       (A) the request for such assurances is sent to the 
     Secretary of State within 5 days after the determination that 
     the assurances are required;
       (B) the Secretary of State initiates the request of the 
     relevant government within 10 days thereafter; and
       (C) the license is issued within 5 days after the Secretary 
     receives the requested assurances.

     Whenever a prelicense check described in paragraph (2) and 
     assurances described in this paragraph are not requested 
     within the time periods set forth therein, then the time 
     expended for such prelicense check or assurances shall be 
     included in calculating the time periods established by this 
     section.
       (4) Multilateral review.--Multilateral review of a license 
     application to the extent that such multilateral review is 
     required by a relevant multilateral regime.
       (5) Congressional notification.--Such time as is required 
     for mandatory congressional notifications under this title.
       (6) Consultations.--Consultation with other governments, if 
     such consultation is provided for by a relevant multilateral 
     regime as a precondition for approving a license.
       (g) Appeals.--
       (1) In general.--The Secretary shall establish appropriate 
     procedures for any applicant to appeal to the Secretary the 
     denial of an export license application or other 
     administrative action under this title.
       (2) Filing of petition.--In any case in which any action 
     prescribed in this section is not taken on a license 
     application within the time periods established by this 
     section (except in the case of a time period extended under 
     subsection (f) of which the applicant is notified), the 
     applicant may file a petition with the Secretary requesting 
     compliance with the requirements of this section. When such 
     petition is filed, the Secretary shall take immediate steps 
     to correct the situation giving rise to the petition and 
     shall immediately notify the applicant of such steps.
       (3) Bringing court action.--If, within 20 days after a 
     petition is filed under paragraph (2), the processing of the 
     application has not been brought into conformity with the 
     requirements of this section, or the application has been 
     brought into conformity with such requirements but the 
     Secretary has not so notified the applicant, the applicant 
     may bring an action in an appropriate United States district 
     court for an order requiring compliance with the time periods 
     required by this section. The United States district courts 
     shall have jurisdiction to provide such relief, as 
     appropriate.
       (h) Classification Requests and Other Inquiries.--
       (1) Classification requests.--In any case in which the 
     Secretary receives a written request asking for the proper 
     classification of an item on the control index, the Secretary 
     shall, within 14 days after receiving the request, inform the 
     person making the request of the proper classification.
       (2) Other inquiries.--In any case in which the Secretary 
     receives a written request for information about the 
     applicability of licensing requirements under this title to a 
     proposed export transaction or series of transactions, the 
     Secretary shall, within 30 days after receiving the request, 
     reply with that information to the person making the request.

     SEC. 110. VIOLATIONS.

       (a) Criminal Penalties.--
       (1) Violations by an individual.--Except as provided in 
     paragraph (3), any individual who knowingly violates or 
     conspires to or attempts to violate any provision of this 
     title or any regulation, license, or order issued under this 
     title shall be fined not more than 5 times the value of the 
     exports involved or $500,000, whichever is greater, or 
     imprisoned not more than 10 years, or both.
       (2) Violations by a person other than an individual.--
     Except as provided in paragraph (3), any person other than an 
     individual who knowingly violates or conspires to or attempts 
     to violate any provision of this title or any regulation, 
     license, or order issued under this title shall be fined not 
     more than 10 times the value of the exports involved or 
     $1,000,000, whichever is greater.
       (3) Antiboycott violations.--
       (A) Any individual who knowingly violates or conspires to 
     or attempts to violate any regulation or order issued under 
     section 108

[[Page H7573]]

     shall be fined, for each violation, not more than 5 times the 
     value of the exports involved or $250,000, whichever is 
     greater, or imprisoned not more than 10 years, or both.
       (B) Any person other than an individual who knowingly 
     violates or conspires to or attempts to violate any 
     regulation or order issued under section 108 shall be fined, 
     for each violation, not more than 5 times the value of the 
     exports involved or $500,000, whichever is greater.
       (b) Forfeiture of Property Interest and Proceeds.--
       (1) Forfeiture.--Any person who is convicted under 
     subsection (a)(1) or (2) shall, in addition to any other 
     penalty, forfeit to the United States--
       (A) any of that person's interest in, security of, claim 
     against, or property or contractual rights of any kind in the 
     commodities or tangible items that were the subject of the 
     violation;
       (B) any of that person's interest in, security of, claim 
     against, or property or contractual rights of any kind in 
     tangible property that was used in the export or attempt to 
     export that was the subject of the violation; and
       (C) any of that person's property constituting, or derived 
     from, any proceeds obtained directly or indirectly as a 
     result of the violation.
       (2) Procedures.--The procedures in any forfeiture under 
     this subsection, and the duties and authority of the courts 
     of the United States and the Attorney General with respect to 
     any forfeiture action under this subsection or with respect 
     to any property that may be subject to forfeiture under this 
     subsection, shall be governed by the provisions of chapter 46 
     of title 18, United States Code, to the same extent as 
     property subject to forfeiture under that chapter.
       (c) Civil Penalties; Administrative Sanctions.--
       (1) Civil penalties.--The Secretary may impose a civil 
     penalty of not more than $250,000 for each violation of this 
     title or any regulation, license, or order issued under this 
     title, either in addition to or in lieu of any other 
     liability or penalty which may be imposed, except that the 
     civil penalty for each such violation of regulations issued 
     under section 108 may not exceed $50,000.
       (2) Denial of export privileges.--The Secretary may deny 
     the export privileges of any person, including suspending or 
     revoking the authority of any person to export or receive 
     United States-origin commodities or technology subject to 
     this title, on account of any violation of this title or any 
     regulation, license, or order issued under this title.
       (d) Payment of Civil Penalties.--The payment of any civil 
     penalty imposed under subsection (c) may be made a condition, 
     for a period not exceeding 1 year after the penalty has 
     become due but has not been paid, to the granting, 
     restoration, or continuing validity of any export license, 
     permission, or privilege granted or to be granted to the 
     person upon whom such penalty is imposed. In addition, the 
     payment of any civil penalty imposed under subsection (c) may 
     be deferred or suspended in whole or in part for a period of 
     time no longer than any probation period (which may exceed 1 
     year) that may be imposed upon such person. Such deferral or 
     suspension shall not operate as a bar to the collection of 
     the penalty in the event that the conditions of the 
     suspension, deferral, or probation are not fulfilled.
       (e) Refunds.--Any amount paid in satisfaction of any civil 
     penalty imposed under subsection (c) shall be covered into 
     the Treasury as a miscellaneous receipt. The head of the 
     department or agency concerned may, in his or her discretion, 
     refund any such civil penalty imposed under subsection (c), 
     within 2 years after payment, on the ground of a material 
     error of fact or law in the imposition of the penalty. 
     Notwithstanding section 1346(a) of title 28, United States 
     Code, no action for the refund of any such penalty may be 
     maintained in any court.
       (f) Effect of Other Convictions.--
       (1) Denial of export privileges.--Any person convicted of a 
     violation of--
       (A) this title or the Export Administration Act of 1979,
       (B) the International Emergency Economic Powers Act,
       (C) section 793, 794, or 798 of title 18, United States 
     Code,
       (D) section 4(b) of the Internal Security Act of 1950 (50 
     U.S.C. 783(b)),
       (E) section 38 of the Arms Export Control Act,
       (F) section 16 of the Trading with the Enemy Act (59 U.S.C. 
     App. 16),
       (G) any regulation, license, or order issued under any 
     provision of law listed in subparagraph (A), (B), (C), (D), 
     (E), or (F), or
       (H) section 371 or 1001 of title 18, United States Code, if 
     in connection with the export of commodities or technology 
     controlled under this title, any regulation, license or order 
     issued under the International Emergency Economic Powers Act, 
     or defense articles or defense services controlled under the 
     Arms Export Control Act,

     may, at the discretion of the Secretary, be denied export 
     privileges under this title for a period of up to 10 years 
     from the date of the conviction. The Secretary may also 
     revoke any export license under this title in which such 
     person had an interest at the time of the conviction.
       (2) Related persons.--The Secretary may exercise the 
     authority under paragraph (1) with respect to any person 
     related, through affiliation, ownership, control, or position 
     of responsibility, to any person convicted of any violation 
     of a law set forth in paragraph (1), upon a showing of such 
     relationship with the convicted person, after providing 
     notice and opportunity for a hearing.
       (g) Statute of Limitations.--Any proceeding in which a 
     civil penalty or other administrative sanction (other than a 
     temporary denial order) is sought under subsection (c) may 
     not be instituted more than 5 years after the date of the 
     alleged violation, except that, in any case in which a 
     criminal indictment alleging a violation of this title is 
     returned within the time limits prescribed by law for the 
     institution of such action, the statute of limitations for 
     bringing a proceeding to impose such a civil penalty or other 
     administrative sanction under this title shall, upon the 
     return of the criminal indictment, be tolled against all 
     persons named as a defendant. The tolling of the statute of 
     limitations shall continue for a period of 6 months from the 
     date a conviction becomes final or the indictment is 
     dismissed.
       (h) Violations Defined by Regulation.--Nothing in this 
     section shall limit the power of the Secretary to define by 
     regulation violations under this title.
       (i) Other Authorities.--Nothing in subsection (c), (d), 
     (e), (f), or (g) limits--
       (1) the availability of other administrative or judicial 
     remedies with respect to violations of this title, or any 
     regulation, order, or license issued under this title;
       (2) the authority to compromise and settle administrative 
     proceedings brought with respect to any such violation; or
       (3) the authority to compromise, remit, or mitigate 
     seizures and forfeitures pursuant to section 1(b) of title VI 
     of the Act of June 15, 1917 (22 U.S.C. 401(b)).
       (j) Private Right of Action.--Any person--
       (1) against whom an act of discrimination described in 
     section 108(a)(1)(B) is committed, or
       (2) who, on account of a violation of the regulations 
     issued pursuant to section 108(a), loses an opportunity to 
     engage in a commercial venture pursuant to a contract, joint 
     venture, or other commercial transaction, including an 
     opportunity to bid or tender an offer for a contract,

     may bring an action in an appropriate district court of the 
     United States against the United States person committing the 
     violation, for recovery of actual damages incurred on account 
     of such act of discrimination or lost opportunity. In any 
     such action the court may award punitive damages. An action 
     may be brought under this subsection against a United States 
     person whether or not the United States person has been 
     determined under this section to have violated the 
     regulations issued pursuant to section 108(a) on account of 
     which the action is brought. In an action brought under this 
     subsection, unless the court finds that the interests of 
     justice require otherwise, the court shall designate the 
     substantially prevailing party or parties in the action, and 
     the remaining parties shall pay the reasonable attorneys' 
     fees of the substantially prevailing party or parties in such 
     proportion as the court shall determine.

     SEC. 111. CONTROLLING PROLIFERATION ACTIVITY.

       (a) Proliferation Controls.--
       (1) Missile technology controls.--The Secretary, in 
     consultation with the Secretary of De fense and the heads of 
     other appropriate departments and agencies and consistent 
     with sections 103 and 104(g)--
       (A) shall establish and maintain, as part of the control 
     index established under section 104(b), dual-use items on the 
     MTCR Annex;
       (B) may include, as part of the control index established 
     under section 104(b), items that--
       (i) would make a material contribution to the design, 
     development, test, production, stockpiling, or use of missile 
     delivery systems, and
       (ii) are not included in the MTCR Annex but which the 
     United States has proposed to the other members of the MTCR 
     for inclusion in the MTCR Annex; and
       (C) shall require a license under paragraph (1) or (2) of 
     section 104(a), consistent with the arrangements of the MTCR, 
     for--
       (i) any export of items on the control index pursuant to 
     subparagraphs (A) and (B) to any country; and
       (ii) any export of items that the exporter knows is 
     destined for a project or facility for the design, 
     development, or manufacture of a missile in a country that is 
     not an adherent to the MTCR.
       (2) Chemical and biological weapons controls.--The 
     Secretary, in consultation with the Secretary of Defense and 
     the heads of other appropriate departments and agencies and 
     consistent with sections 103 and 104(g)--
       (A) shall establish and maintain, as part of the control 
     index established under section 104(b), dual-use items listed 
     by the Australia Group or the Chemical Weapons Convention;
       (B) may include, as part of the control index established 
     under section 104(b), items that--
       (i) would make a material contribution to the design, 
     development, test, production, stockpiling, or use of 
     chemical or biological weapons, and
       (ii) are not contained on the list of controlled items of 
     the Australia Group but which the United States has proposed 
     to the other members of the Australia Group for inclusion in 
     such list; and
       (C) shall require a license under paragraph (1) or (2) of 
     section 104(a), consistent with the

[[Page H7574]]

     arrangements of the Australia Group and the Chemical Weapons 
     Convention, for--
       (i) any export of items on the control index pursuant to 
     subparagraphs (A) and (B) to any country, except as provided 
     for in section 105(e); and
       (ii) any export of items that the exporter knows is 
     destined for a project or facility for the design, 
     development, or manufacture of a chemical or biological 
     weapon.
       (3) Policy of denial of licenses.--(A) Licenses under 
     paragraph (1)(C) should in general be denied if the ultimate 
     consignee of the commodities or technology is a facility in a 
     country that is not an adherent to the MTCR and the facility 
     is designed to develop or build missiles.
       (B) Licenses under paragraph (1)(C) shall be denied if the 
     ultimate consignee of the commodities or technology is a 
     facility in a country the government of which has been 
     determined under section 106(i)(1) to have repeatedly 
     provided support for acts of international terrorism.
       (b) Technical Amendments to Arms Export Control Act.--(1) 
     Section 71(a) of the Arms Export Control Act (22 U.S.C. 
     2797(a)) is amended by striking ``6(l) of the Export 
     Administration Act of 1979'' and inserting ``111(a) of the 
     Export Administration Act of 1996''.
       (2) Section 81(a)(1) of the Arms Export Control Act (22 
     U.S.C. 2798(a)(1)) is amended in subparagraphs (A) and (B) by 
     inserting ``under this Act'' after ``United States'' the 
     second place it appears in each subparagraph.
       (c) General Prohibition.--Notwithstanding any other 
     provision of this title, the export of commodities or 
     technology shall be prohibited if the ultimate consignee is a 
     program or activity for the design, development, manufacture, 
     stockpiling, testing, or other acquisition of a weapon of 
     mass destruction or missile in a country that is not an 
     adherent to the regime controlling such weapon or missile, 
     unless the Secretary determines such export would not make a 
     material contribution to such program or activity.
       (d) Chemical and Biological Weapons Proliferation 
     Sanctions.--
       (1) Imposition of sanctions.--
       (A) Determination by the president.--Except as provided in 
     paragraph (2)(B), the President shall impose both of the 
     sanctions described in paragraph (3) if the President 
     determines that a foreign person, on or after the date of the 
     enactment of this Act, has knowingly and materially 
     contributed--
       (i) through the export from the United States of any goods 
     or technology that are subject to the jurisdiction of the 
     United States under this title, or
       (ii) through the export from any other country of any goods 
     or technology that would be, if they were United States goods 
     or technology, subject to the jurisdiction of the United 
     States under this title,
     to the efforts by any foreign country, project, or entity 
     described in subparagraph (B) to use, develop, produce, 
     stockpile, or otherwise acquire chemical or biological 
     weapons.
       (B) Countries, projects, or entities receiving 
     assistance.--Subparagraph (A) applies in the case of--
       (i) any foreign country that the President determines has, 
     at any time after January 1, 1980--

       (I) used chemical or biological weapons in violation of 
     international law;
       (II) used lethal chemical or biological weapons against its 
     own nationals; or
       (III) made substantial preparations to engage in the 
     activities described in subclause (I) or (II);

       (ii) any foreign country whose government is determined for 
     purposes of section 106(i) to be a government that has 
     repeatedly provided support for acts of international 
     terrorism; or
       (iii) any other foreign country, project, or entity 
     designated by the President for purposes of this subsection.
       (C) Persons against which sanctions are to be imposed.--
     Sanctions shall be imposed pursuant to subparagraph (A) on--
       (i) the foreign person with respect to which the President 
     makes the determination described in that subparagraph;
       (ii) any successor entity to that foreign person;
       (iii) any foreign person that is a parent or subsidiary of 
     that foreign person if that parent or subsidiary knowingly 
     assisted in the activities which were the basis of that 
     determination; and
       (iv) any foreign person that is an affiliate of that 
     foreign person if that affiliate knowingly assisted in the 
     activities which were the basis of that determination and if 
     that affiliate is controlled in fact by that foreign person.
       (2) Consultations with and actions by foreign government of 
     jurisdiction.--
       (A) Consultations.--If the President makes the 
     determinations described in paragraph (1)(A) 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 sanctions pursuant to this subsection.
       (B) Actions by government of jurisdiction.--In order to 
     pursue such consultations with that government, the President 
     may delay imposition of sanctions pursuant to this subsection 
     for a period of up to 90 days. Following these consultations, 
     the President shall impose sanctions 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 paragraph 
     (1)(A). The President may delay imposition of sanctions 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.
       (C) Report to congress.--The President shall report to the 
     Congress, not later than 90 days after making a determination 
     under paragraph (1)(A), on the status of consultations with 
     the appropriate government under this subsection, and the 
     basis for any determination under subparagraph (B) of this 
     paragraph that such government has taken specific corrective 
     actions.
       (3) Sanctions.--
       (A) Description of sanctions.--The sanctions to be imposed 
     pursuant to paragraph (1)(A) are, except as provided in 
     subparagraph (B) of this paragraph, the following:
       (i) Procurement sanction.--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 paragraph (1)(C).
       (ii) Import sanctions.--The importation into the United 
     States of products produced by any person described in 
     paragraph (1)(C) shall be prohibited.
       (B) Exceptions.--The President shall not be required to 
     apply or maintain sanctions under this subsection--
       (i) in the case of procurement of defense articles or 
     defense services--

       (I) under existing contracts or subcontracts, including the 
     exercise of options for production quantities to satisfy 
     United States operational military requirements;
       (II) if the President determines that the person or other 
     entity to which the sanctions would otherwise be applied is a 
     sole source supplier of the defense articles or services, 
     that the defense articles or services are essential, and that 
     alternative sources are not readily or reasonably available; 
     or
       (III) if the President determines that such articles or 
     services are essential to the national security under defense 
     coproduction agreements;

       (ii) to products or services provided under contracts 
     entered into before the date on which the President publishes 
     his intention to impose sanctions;
       (iii) to--

       (I) spare parts,
       (II) component parts, but not finished products, essential 
     to United States products or production, or
       (III) routine servicing and maintenance of products, to the 
     extent that alternative sources are not readily or reasonably 
     available;

       (iv) to information and technology essential to United 
     States products or production; or
       (v) to medical or other humanitarian items.
       (4) Termination of sanctions.--The sanctions imposed 
     pursuant to this subsection shall apply for a period of at 
     least 12 months following the imposition of sanctions 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 paragraph (1)(A) 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 paragraph.
       (5) Waiver.--
       (A) Criterion for waiver.--The President may waive the 
     application of any sanction imposed on any person pursuant to 
     this subsection, 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.
       (B) Notification of and report to congress.--If the 
     President decides to exercise the waiver authority provided 
     in subparagraph (A), 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.
       (6) Definition of foreign person.--For purposes of this 
     subsection, the term ``foreign person'' means--
       (A) an individual who is not a citizen of the United States 
     or an alien lawfully admitted for permanent residence to the 
     United States; or
       (B) a corporation, partnership, or other entity which is 
     created or organized under the laws of a foreign country or 
     which has its principal place of business outside the United 
     States.
       (e) Missile Proliferation Control Violations.--
       (1) Violations by united states persons.--
       (A) Sanctions.--(i) If the President determines that a 
     United States person knowingly--
       (I) exports, transfers, or otherwise engages in the trade 
     of any item on the MTCR Annex, in violation of the provisions 
     of section 38 (22 U.S.C. 2778) or chapter 7 of the Arms 
     Export Control Act, this title, or any regulations or orders 
     issued under any such provisions,
       (II) conspires to or attempts to engage in such export, 
     transfer, or trade, or

[[Page H7575]]

       (III) facilitates such export, transfer, or trade by any 
     other person,
     then the President shall impose the applicable sanctions 
     described in clause (ii).
       (ii) The sanctions which apply to a United States person 
     under clause (i) are the following:
       (I) If the item on the MTCR Annex involved in the export, 
     transfer, or trade is missile equipment or technology within 
     category II of the MTCR Annex, then the President shall deny 
     to such United States person, for a period of 2 years, 
     licenses for the transfer of missile equipment or technology 
     controlled under this title.
       (II) If the item on the MTCR Annex involved in the export, 
     transfer, or trade is missile equipment or technology within 
     category I of the MTCR Annex, then the President shall deny 
     to such United States person, for a period of not less than 2 
     years, all licenses for items the export of which is 
     controlled under this title.
       (B) Discretionary sanctions.--In the case of any 
     determination referred to in subparagraph (A), the Secretary 
     may pursue any other appropriate penalties under section 110.
       (C) Waiver.--The President may waive the imposition of 
     sanctions under subparagraph (A) on a person with respect to 
     a product or service if the President certifies to the 
     Congress that--
       (i) the product or service is essential to the national 
     security of the United States; and
       (ii) 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.
       (2) Transfers of missile equipment or technology by foreign 
     persons.--
       (A) Sanctions.--(i) Subject to subparagraphs (C) through 
     (G), if the President determines that a foreign person, after 
     the date of the enactment of this section, knowingly--
       (I) exports, transfers, or otherwise engages in the trade 
     of any MTCR equipment or technology that contributes to the 
     design, development, or production of missiles in a country 
     that is not an adherent to the MTCR and would be, if it were 
     United States-origin equipment or technology, subject to the 
     jurisdiction of the United States under this title,
       (II) conspires to or attempts to engage in such export, 
     transfer, or trade, or
       (III) facilitates such export, transfer, or trade by any 
     other person,

     or if the President has made a determination with respect to 
     a foreign person, under section 73(a) of the Arms Export 
     Control Act, then the President shall impose on that foreign 
     person the applicable sanctions under clause (ii).
       (ii) The sanctions which apply to a foreign person under 
     clause (i) are the following:
       (I) If the item involved in the export, transfer, or trade 
     is within category II of the MTCR Annex, then the President 
     shall deny, for a period of 2 years, licenses for the 
     transfer to such foreign person of missile equipment or 
     technology the export of which is controlled under this 
     title.
       (II) If the item involved in the export, transfer, or trade 
     is within category I of the MTCR Annex, then the President 
     shall deny, for a period of not less than 2 years, licenses 
     for the transfer to such foreign person of items the export 
     of which is controlled under this title.
       (III) If, in addition to actions taken under subclauses (I) 
     and (II), the President determines that the export, transfer, 
     or trade has substantially contributed to the design, 
     development, or production of missiles in a country that is 
     not an adherent to the MTCR, then the President shall 
     prohibit, for a period of not less than 2 years, the 
     importation into the United States of products produced by 
     that foreign person.
       (B) Inapplicability with respect to mtcr adherents.--
     Subparagraph (A) does not apply with respect to--
       (i) any export, transfer, or trading activity that is 
     authorized by the laws of an adherent to the MTCR, if such 
     authorization is not obtained by misrepresentation or fraud; 
     or
       (ii) any export, transfer, or trade of an item to an end 
     user in a country that is an adherent to the MTCR.
       (C) Effect of enforcement actions by mtcr adherents.--
     Sanctions set forth in subparagraph (A) may not be imposed 
     under this paragraph on a person with respect to acts 
     described in such subparagraph or, if such sanctions are in 
     effect against a person on account of such acts, such 
     sanctions shall be terminated, if an adherent to the MTCR is 
     taking judicial or other enforcement against that person with 
     respect to such acts, or that person has been found by the 
     government of an adherent to the MTCR to be innocent of 
     wrongdoing with respect to such acts.
       (D) Advisory opinions.--The Secretary, in consultation with 
     the Secretary of State and the Secretary of Defense, 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 paragraph. 
     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.
       (E) Waiver and report to congress.--(i) In any case other 
     than one in which an advisory opinion has been issued under 
     subparagraph (D) stating that a proposed activity would not 
     subject a person to sanctions under this paragraph, the 
     President may waive the application of subparagraph (A) to a 
     foreign person if the President determines that such waiver 
     is essential to the national security of the United States.
       (ii) In the event that the President decides to apply the 
     waiver described in clause (i), 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.
       (F) Additional waiver.--The President may waive the 
     imposition of sanctions under subparagraph (A) on a person 
     with respect to a product or service if the President 
     certifies to the Congress that--
       (i) the product or service is essential to the national 
     security of the United States; and
       (ii) 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.
       (G) Exceptions from import sanctions.--The President shall 
     not apply the sanction under this subsection prohibiting the 
     importation of the products of a foreign person--
       (i) in the case of procurement of defense articles or 
     defense services--

       (I) under existing contracts or subcontracts, including the 
     exercise of options for production quantities to satisfy 
     requirements essential to the national security of the United 
     States;
       (II) if the President determines that the person to which 
     the sanctions would be applied is a sole source supplier of 
     the defense articles and services, that the defense articles 
     or services are essential to the national security of the 
     United States, and that alternative sources are not readily 
     or reasonably available; or
       (III) if the President determines that such articles or 
     services are essential to the national security of the United 
     States under defense coproduction agreements;

       (ii) to products or services provided under contracts 
     entered into before the date on which the President publishes 
     his intention to impose the sanctions; or
       (iii) to--

       (I) spare parts,
       (II) component parts, but not finished products, essential 
     to United States products or production,
       (III) routine services and maintenance of products, to the 
     extent that alternative sources are not readily or reasonably 
     available, or
       (IV) information and technology essential to United States 
     products or production.

       (3) Definitions.--For purposes of this subsection--
       (A) the terms ``missile equipment or technology'' and 
     ``MTCR equipment or technology'' mean those items listed in 
     category I or category II of the MTCR Annex;
       (B) the term ``foreign person'' means any person other than 
     a United States person;
       (C)(i) the term ``person'' means a natural person as well 
     as a corporation, business association, partnership, society, 
     trust, any other nongovernmental entity, organization, or 
     group, and any governmental entity operating as a business 
     enterprise, and any successor of any such entity; and
       (ii) in the case of a country where it may be impossible to 
     identify a specific governmental entity referred to in clause 
     (i), the term ``person'' means--
       (I) all activities of that government relating to the 
     development or production of any missile equipment or 
     technology; and
       (II) all activities of that government affecting the 
     development or production of aircraft, electronics, and space 
     systems or equipment; and
       (D) the term ``otherwise engaged in the trade of'' means, 
     with respect to a particular export or transfer, to be a 
     freight forwarder or designated exporting agent, or a 
     consignee or end user of the item to be exported or 
     transferred.
       (f) Effect on Other Laws.--The provisions of this section 
     do not affect any activities subject to the reporting 
     requirements contained in title V of the National Security 
     Act of 1947.
       (g) Seeking Multilateral Support for Unilateral 
     Sanctions.--The Secretary of State, in consultation with 
     appropriate departments and agencies, shall seek the support 
     of other countries for sanctions imposed under this section.

     SEC. 112. ADMINISTRATIVE AND JUDICIAL REVIEW.

       (a) Applicability.--
       (1) Exemptions from administrative procedure.--Except as 
     provided in this section, the functions exercised under this 
     title are excluded from the operation of sections 551, 553 
     through 559, and 701 through 706 of title 5, United States 
     Code.
       (2) Judicial review.--Except as otherwise provided in this 
     section, a final agency action under this title may be 
     reviewed by appeal to the United States Court of Appeals for 
     the District of Columbia Circuit, to the extent provided in 
     this paragraph. The court's review in any such appeal shall 
     be limited to determining whether--
       (A) a regulation--

[[Page H7576]]

       (i) fails to take an action required by this title;
       (ii) takes an action prohibited by this title; or
       (iii) otherwise violates this title;
       (B) an agency action violates this title;
       (C) an agency action violates an agency regulation 
     establishing time requirements or other procedural 
     requirements of a non-discretionary nature;
       (D) the issuance of regulations required by this title 
     complies with time restrictions imposed by this title;
       (E) license decisions are made and appeals thereof are 
     concluded in compliance with time restrictions imposed by 
     this title;
       (F) classifications and advisory opinions are issued in 
     compliance with time restrictions imposed by this title;
       (G) unfair impact determinations under section 114(k) are 
     in compliance with time restrictions imposed by that section; 
     or
       (H) the United States has complied with the requirements of 
     section 114(k) after an unfair impact determination has been 
     made.
       (b) Procedures Relating to Civil Penalties and Sanctions.--
       (1) Administrative procedures.--Any administrative sanction 
     imposed under section 110(c) 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. The imposition of any such administrative 
     sanction shall be subject to judicial review in accordance 
     with sections 701 through 706 of title 5, United States Code.
       (2) Availability of charging letter.--Any charging letter 
     or other document initiating administrative proceedings for 
     the imposition of sanctions for violations of the regulations 
     issued under section 108(a) shall be made available for 
     public inspection and copying.
       (c) Collection.--If any person fails to pay a civil penalty 
     imposed under section 110(c), the Secretary may ask the 
     Attorney General to bring a civil action in an appropriate 
     district court to recover the amount imposed (plus interest 
     at currently prevailing rates from the date of the final 
     order). No such action may be commenced more than 5 years 
     after the order imposing the civil penalty becomes final. In 
     such an action, the validity, amount, and appropriateness of 
     such penalty shall not be subject to review.
       (d) Imposition of Temporary Denial Orders.--
       (1) Grounds for imposition.--In any case in which there is 
     reasonable cause to believe that a person is engaged in or is 
     about to engage in any act or practice which constitutes or 
     would constitute a violation of this title, or any 
     regulation, order, or license issued under this title, 
     including any diversion of goods or technology from an 
     authorized end use or end user, or in any case in which a 
     criminal indictment has been returned against a person 
     alleging a violation of this title or any of the statutes 
     listed in section 110(f), the Secretary may, without a 
     hearing, issue an order temporarily denying that person's 
     United States export privileges (hereafter in this subsection 
     referred to a ``temporary denial order''). A temporary denial 
     order may be effective for no longer than 180 days, but may 
     be renewed by the Secretary, following notice and an 
     opportunity for a hearing, for additional periods of not more 
     than 180 days each.
       (2) Administrative appeals.--The person or persons subject 
     to the issuance or renewal of a temporary denial order may 
     appeal the issuance or renewal of the temporary denial order, 
     supported by briefs and other material, to an administrative 
     law judge who shall, within 15 working days after the appeal 
     is filed, issue a decision affirming, modifying, or vacating 
     the temporary denial order. The temporary denial order shall 
     be affirmed if it is shown that--
       (A) there is reasonable cause to believe that the person 
     subject to the order is engaged in or is about to engage in 
     any act or practice which constitutes or would constitute a 
     violation of this title, or any regulation, order, or license 
     issued under this title, or
       (B) a criminal indictment has been returned against the 
     person subject to the order alleging a violation of this 
     title or any of the statutes listed in section 110(f).

     The decision of the administrative law judge shall be final 
     unless, within 10 working days after the date of the 
     administrative law judge's decision, an appeal is filed with 
     the Secretary. On appeal, the Secretary shall either affirm, 
     modify, reverse, or vacate the decision of the administrative 
     law judge by written order within 10 working days after 
     receiving the appeal. The written order of the Secretary 
     shall be final and is not subject to judicial review, except 
     as provided in paragraph (3). The materials submitted to the 
     administrative law judge and the Secretary shall constitute 
     the administrative record for purposes of review by the 
     court.
       (3) Court appeals.--An order of the Secretary affirming, in 
     whole or in part, the issuance or renewal of a temporary 
     denial order may, within 15 days after the order is issued, 
     be appealed by a person subject to the order to the United 
     States Court of Appeals for the District of Columbia Circuit, 
     which shall have jurisdiction of the appeal. The court may 
     review only those issues necessary to determine whether the 
     issuance of the temporary denial order was based on 
     reasonable cause to believe that the person subject to the 
     order was engaged in or was about to engage in any act or 
     practice which constitutes or would constitute a violation of 
     this title, or any regulation, order, or license issued under 
     this title, or if a criminal indictment has been returned 
     against the person subject to the order alleging a violation 
     of this title or any of the statutes listed in section 
     110(f). The court shall vacate the Secretary's order if the 
     court finds that the Secretary's order is arbitrary, 
     capricious, an abuse of discretion, or otherwise not in 
     accordance with law.

     SEC. 113. ENFORCEMENT.

       (a) General Authority and Designation.--
       (1) Policy guidance on enforcement.--The Secretary, in 
     consultation with the Secretary of the Treasury and the heads 
     of other appropriate departments and agencies, shall be 
     responsible for providing policy guidance on the enforcement 
     of this title.
       (2) General authorities.--(A) To the extent necessary or 
     appropriate to the enforcement of this title or to the 
     imposition of any penalty, forfeiture, or liability arising 
     under the Export Administration Act of 1979, officers or 
     employees of the Department of Commerce designated by the 
     Secretary and officers and employees of the United States 
     Customs Service designated by the Commissioner may exercise 
     the enforcement authorities described in paragraph (3).
       (B) In carrying out the enforcement authorities described 
     in paragraph (3), the Commissioner of Customs, and employees 
     of the United States Customs Service designated by the 
     Commissioner, may make investigations within or outside the 
     United States and at those ports of entry or exit from the 
     United States where officers of the United States Customs 
     Service are authorized by law to carry out such enforcement 
     responsibilities. Subject to paragraph (3), the United States 
     Customs Service is authorized, in the enforcement of this 
     title, to search, detain (after search), and seize 
     commodities or technology at those ports of entry or exit 
     from the United States where officers of the Customs Service 
     are authorized by law to conduct such searches, detentions, 
     and seizures, and at those places outside the United States 
     where the Customs Service, pursuant to agreements or other 
     arrangements with other countries, is authorized to perform 
     enforcement activities.
       (C) In carrying out the enforcement authorities described 
     in paragraph (3), the Secretary, and officers and employees 
     of the Department of Commerce designated by the Secretary, 
     may make investigations within the United States, and shall 
     conduct, outside the United States, prelicense and 
     postshipment verifications of items licensed for export and 
     investigations in the enforcement of section 108. The 
     Secretary, and officers and employees of the Department of 
     Commerce designated by the Secretary, are authorized to 
     search, detain (after search), and seize items at those 
     places within the United States other than those ports 
     specified in subparagraph (B). The search, detention (after 
     search), or seizure of items at those ports and places 
     specified in subparagraph (B) may be conducted by officers 
     and employees of the Department of Commerce only with the 
     concurrence of the Commissioner of Customs or a person 
     designated by the Commissioner.
       (D) The Secretary and the Commissioner of Customs may enter 
     into agreements and arrangements for the enforcement of this 
     title, including foreign investigations and information 
     exchange.
       (3) Specific authorities.--(A) Any officer or employee 
     designated under paragraph (2) may do the following in 
     carrying out the enforcement authority under this title:
       (i) Make investigations of, obtain information from, make 
     inspection of any books, records, or reports (including any 
     writings required to be kept by the Secretary), premises, or 
     property of, and take the sworn testimony of, any person.
       (ii) 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. In the 
     case of contumacy by, or refusal to obey a subpoena issued 
     to, any such person, a district court of the United States, 
     on request of the Attorney General and after notice to any 
     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. Any failure to obey such order of the court may be 
     punished by such court as a contempt thereof. The attendance 
     of witnesses and the production of documents provided for in 
     this clause may be required from any State, the District of 
     Columbia, or in any territory of the United States at any 
     designated place. Witnesses subpoenaed under this subsection 
     shall be paid the same fees and mileage as are paid witnesses 
     in the district courts of the United States.
       (B)(i) Any officer or employee of the Office of Export 
     Enforcement of the Department of Commerce who is designated 
     by the Secretary under paragraph (2), and any officer or 
     employee of the United States Customs Service who is 
     designated by the Commissioner of Customs under paragraph 
     (2), may do the following in carrying out the enforcement 
     authority under this title:
       (I) Execute any warrant or other process issued by a court 
     or officer of competent jurisdiction with respect to the 
     enforcement of this title.
       (II) Make arrests without warrant for any violation of this 
     title committed in his or

[[Page H7577]]

     her presence or view, or if the officer or employee has 
     probable cause to believe that the person to be arrested has 
     committed, is committing, or is about to commit such a 
     violation.
       (III) Carry firearms.
       (ii) Officers and employees of the Office of Export 
     Enforcement designated by the Secretary under paragraph (2) 
     shall exercise the authorities set forth in clause (i) 
     pursuant to guidelines approved by the Attorney General.
       (C) Any officer or employee of the United States Customs 
     Service designated by the Commissioner of Customs under 
     paragraph (2) may do the following in carrying out the 
     enforcement authority under this title:
       (i) Stop, search, and examine a vehicle, vessel, aircraft, 
     or person on which or whom the officer or employee has 
     reasonable cause to suspect there is any item that has been, 
     is being, or is about to be exported from or transited 
     through the United States in violation of this title.
       (ii) Detain and search any package or container in which 
     the officer or employee has reasonable cause to suspect there 
     is any item that has been, is being, or is about to be 
     exported from or transited through the United States in 
     violation of this title.
       (iii) Detain (after search) or seize any item, for purposes 
     of securing for trial or forfeiture to the United States, on 
     or about such vehicle, vessel, aircraft, or person or in such 
     package or container, if the officer or employee has probable 
     cause to believe the item has been, is being, or is about to 
     be exported from or transited through the United States in 
     violation of this title.
       (4) Other authorities not affected.--The authorities 
     conferred by this section are in addition to any authorities 
     conferred under other laws.
       (b) Forfeiture.--Any commodities or tangible items lawfully 
     seized under subsection (a) by designated officers or 
     employees shall be subject to forfeiture to the United 
     States. Those provisions of law relating to--
       (1) the seizure, summary and judicial forfeiture, and 
     condemnation of property for violations of the customs laws,
       (2) the disposition of such property or the proceeds from 
     the sale thereof,
       (3) the remission or mitigation of such forfeitures, and
       (4) the compromise of claims,

     shall apply to seizures and forfeitures incurred, or alleged 
     to have been incurred, under the provisions of this 
     subsection, insofar as applicable and not inconsistent with 
     this title; except that such duties as are imposed upon the 
     customs officer or any other person with respect to the 
     seizure and forfeiture of property under the customs laws may 
     be performed with respect to seizures and forfeitures of 
     property under this subsection by the Secretary or such 
     officers and employees of the Department of Commerce as may 
     be authorized or designated for that purpose by the 
     Secretary, or, upon the request of the Secretary, by any 
     other agency that has authority to manage and dispose of 
     seized property.
       (c) Referral of Cases.--All cases involving violations of 
     this title shall be referred to the Secretary for purposes of 
     determining civil penalties and administrative sanctions 
     under section 110(c), or to the Attorney General for criminal 
     action in accordance with this title or to both the Secretary 
     and the Attorney General.
       (d) Undercover Investigation Operations.--
       (1) Use of funds.--With respect to any undercover 
     investigative operation conducted by the Office of Export 
     Enforcement of the Department of Commerce (hereafter in this 
     subsection referred to as ``OEE'') necessary for the 
     detection and prosecution of violations of this title--
       (A) funds made available for export enforcement under this 
     title may be used to purchase property, buildings, and other 
     facilities, and to lease space within the United States, 
     without regard to sections 1341 and 3324 of title 31, United 
     States Code, the third undesignated paragraph under the 
     heading of ``miscellaneous'' of the Act of March 3, 1877, (40 
     U.S.C. 34), sections 3732(a) and 3741 of the Revised Statutes 
     of the United States (41 U.S.C. 11(a) and 22), and 
     subsections (a) and (c) of section 304, and section 305 of 
     the Federal Property and Administrative Services Act of 1949 
     (41 U.S.C. 254(a) and (c) and 255),
       (B) funds made available for export enforcement under this 
     title may be used to establish or to acquire proprietary 
     corporations or business entities as part of an undercover 
     operation, and to operate such corporations or business 
     entities on a commercial basis, without regard to section 
     9102 of title 31, United States Code,
       (C) funds made available for export enforcement under this 
     title and the proceeds from undercover operations may be 
     deposited in banks or other financial institutions without 
     regard to the provisions of section 648 of title 18, United 
     States Code, and section 3302 of title 31, United States 
     Code, and
       (D) the proceeds from undercover operations may be used to 
     offset necessary and reasonable expenses incurred in such 
     operations without regard to the provisions of section 3302 
     of title 31, United States Code,

     if the Director of OEE (or an officer or employee designated 
     by the Director) certifies, in writing, that the action 
     authorized by subparagraph (A), (B), (C), or (D) for which 
     the funds would be used is necessary for the conduct of the 
     undercover operation.
       (2) Disposition of business entities.--If a corporation or 
     business entity established or acquired as part of an 
     undercover operation with a net value of more than $50,000 is 
     to be liquidated, sold, or otherwise disposed of, the 
     Director of OEE shall report the circumstances to the 
     Secretary and the Comptroller General, as much in advance of 
     such disposition as the Director of OEE or his or her 
     designee determines is practicable. The proceeds of the 
     liquidation, sale, or other disposition, after obligations 
     incurred by the corporation or business enterprise are met, 
     shall be deposited in the Treasury of the United States as 
     miscellaneous receipts.
       (3) Deposit of proceeds.--As soon as the proceeds from an 
     OEE undercover investigative operation with respect to which 
     an action is authorized and carried out under this subsection 
     are no longer necessary for the conduct of such operation, 
     such proceeds or the balance of such proceeds remaining at 
     the time shall be deposited into the Treasury of the United 
     States as miscellaneous receipts.
       (4) Audit and report.--(A) The Director of OEE shall 
     conduct a detailed financial audit of each OEE undercover 
     investigative operation which is closed and shall submit the 
     results of the audit in writing to the Secretary. Not later 
     than 180 days after an undercover operation is closed, the 
     Secretary shall submit to the Congress a report on the 
     results of the audit.
       (B) The Secretary shall submit annually to the Congress a 
     report, which may be included in the annual report under 
     section 115, specifying the following information:
       (i) The number of undercover investigative operations 
     pending as of the end of the period for which such report is 
     submitted.
       (ii) The number of undercover investigative operations 
     commenced in the 1-year period preceding the period for which 
     such report is submitted.
       (iii) The number of undercover investigative operations 
     closed in the 1-year period preceding the period for which 
     such report is submitted and, with respect to each such 
     closed undercover operation, the results obtained and any 
     civil claims made with respect thereto.
       (5) Definitions.--For purposes of paragraph (4)--
       (A) the term ``closed'', with respect to an undercover 
     investigative operation, refers to the earliest point in time 
     at which all criminal proceedings (other than appeals) 
     pursuant to the investigative operation are concluded, or 
     covert activities pursuant to such operation are concluded, 
     whichever occurs later;
       (B) the terms ``undercover investigative operation'' and 
     ``undercover operation'' mean any undercover investigative 
     operation conducted by OEE--
       (i) in which the gross receipts (excluding interest earned) 
     exceed $25,000, or expenditures (other than expenditures for 
     salaries of employees) exceed $75,000, and
       (ii) which is exempt from section 3302 or 9102 of title 31, 
     United States Code,
     except that clauses (i) and (ii) shall not apply with respect 
     to the report to the Congress required by subparagraph (B) of 
     paragraph (4); and
       (C) the term ``employees'' means employees, as defined in 
     section 2105 of title 5, United States Code, of the 
     Department of Commerce.
       (e) Reference to Enforcement.--For purposes of this 
     section, a reference to the enforcement of this title or to a 
     violation of this title includes a reference to the 
     enforcement or a violation of any regulation, license, or 
     order issued under this title.

     SEC. 114. EXPORT CONTROL AUTHORITIES AND PROCEDURES.

       (a) Policy Guidance.--
       (1) In general.--As directed by the President, annual 
     policy guidance shall be issued to provide detailed 
     implementing guidance to export licensing officials in all 
     appropriate departments and agencies.
       (2) Elements of annual policy review.--In order to develop 
     such annual policy guidance, export controls and other 
     regulations to implement this title shall be reviewed 
     annually. This annual policy review shall include an 
     evaluation of the benefits and costs of the imposition, 
     extension, or removal of controls under this title. This 
     review shall include--
       (A) an assessment by the Secretary of the economic 
     consequences of the imposition, extension, or removal of 
     controls during the preceding 12 months, including the impact 
     on United States exports or jobs;
       (B) an assessment by the Secretary of State of the 
     objectives of the controls in effect during the preceding 12 
     months, and the extent to which the controls have served 
     those objectives; and
       (C) an assessment by the Secretary of Defense of the impact 
     that the imposition, extension, or removal of controls during 
     the preceding 12 months has had on United States national 
     security.
       (b) Export Control Authority and Functions.--
       (1) In general.--Unless otherwise reserved to the President 
     or a department or agency outside the Department of Commerce, 
     all power, authority, and discretion conferred by this title 
     shall be exercised by the Secretary.
       (2) Delegation of functions of the secretary.--The 
     Secretary may delegate any function under this title to the 
     Under Secretary of Commerce for Export Administration 
     appointed under subsection (d) or to any other officer of the 
     Department of Commerce.

[[Page H7578]]

       (c) Export Control Policy Committee.--
       (1) Establishment.--There is established an Export Control 
     Policy Committee (hereafter in this subsection referred to as 
     the ``Committee'').
       (2) Functions.--The Committee shall--
       (A) provide policy guidance and advice to the President on 
     export control issues under this title;
       (B) review policy recommendations proposed by the Secretary 
     and other members of the Committee; and
       (C) receive policy recommendations from other departments 
     and agencies and resolve policy disputes among departments 
     and agencies under this title.
       (3) Membership.--The Committee shall include the Secretary, 
     the Secretary of Defense, the Secretary of Energy, the heads 
     of other relevant departments, and appropriate officials of 
     the Executive Office of the President.
       (4) Chair.--The Committee shall be chaired by the President 
     or his designee.
       (5) Delegation; other representatives.--A member of the 
     Committee under paragraph (3) may designate the deputy head 
     of his or her department or agency to serve in his or her 
     absence as a member of the Committee, but this authority may 
     not be delegated to any other individual. The chair may also 
     invite the temporary participation in the Committee's 
     meetings of representatives from other offices and agencies 
     as appropriate to the issues under consideration.
       (6) Meetings.--The chair of the Committee may call a 
     meeting of the Committee. Meetings shall not be subject to 
     section 552b of title 5, United States Code.
       (d) Under Secretary of Commerce; Assistant Secretaries.--
       (1) Appointment.--The President shall appoint, by and with 
     the advice and consent of the Senate, an Under Secretary of 
     Commerce for Export Administration who shall carry out all 
     functions of the Secretary under this title and other 
     provisions of law relating to national security, as the 
     Secretary may delegate. The President shall appoint, by and 
     with the advice and consent of the Senate, two Assistant 
     Secretaries of Commerce to assist the Under Secretary in 
     carrying out such functions.
       (2) Transition provisions.--Those individuals serving in 
     the positions of Under Secretary of Commerce for Export 
     Administration and Assistant Secretaries of Commerce under 
     section 15(a) of the Export Administration Act of 1979, on 
     the day before the date of the enactment of this Act, shall 
     be deemed to have been appointed under paragraph (1), by and 
     with the advice and consent of the Senate, as of such date of 
     enactment.
       (e) Issuance of Regulations.--The President and the 
     Secretary may issue such regulations as are necessary to 
     carry out this title. Any such regulations the purpose of 
     which is to carry out section 105, 106, or 111(a) may be 
     issued only after the regulations are submitted for review to 
     such departments or agencies as the President considers 
     appropriate. The Secretary shall consult with the appropriate 
     export advisory committee appointed under section 104(f) in 
     formulating regulations under this title. The second sentence 
     of this subsection does not require the concurrence or 
     approval of any official, department, or agency to which such 
     regulations are submitted.
       (f) Amendments to Regulations.--If the Secretary proposes 
     to amend regulations issued under this title, the Secretary 
     shall report to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Speaker of the House of 
     Representatives on the intent and rationale of such 
     amendments. Such report shall evaluate the cost and burden to 
     the United States exporters of the proposed amendments in 
     relation to any enhancement of licensing objectives. The 
     Secretary shall consult with the appropriate export advisory 
     committees appointed under section 104(f) in amending 
     regulations issued under this title.
       (g) Confidentiality of Information.--
       (1) Exemptions from disclosure.--
       (A) Information obtained on or before june 30, 1980.--
     Except as otherwise provided by the third sentence of section 
     108(b)(2), information obtained under the Export 
     Administration Act of 1979 and its predecessor statutes on or 
     before June 30, 1980, which is deemed confidential, including 
     Shipper's Export Declarations, or with reference to which a 
     request for confidential treatment is made by the person 
     furnishing such information, shall not be subject to 
     disclosure under section 552 of title 5, United States Code, 
     and such information shall not be published or disclosed 
     unless the Secretary determines that the withholding thereof 
     is contrary to the national interest.
       (B) Information obtained after june 30, 1980.--Except as 
     otherwise provided by the third sentence of section 
     108(b)(2), information obtained under this title or under the 
     Export Administration Act of 1979 after June 30, 1980, may be 
     withheld from disclosure only to the extent permitted by 
     statute, except that information submitted, obtained, or 
     considered in connection with an application for an export 
     license or other export authorization under the Export 
     Administration Act of 1979 or this title, including--
       (i) the export license or other export authorization 
     itself,
       (ii) classification requests described in section 
     109(h)(1),
       (iii) information obtained during the course of an 
     assessment under subsection (k),
       (iv) information or evidence obtained in the course of any 
     investigation, and
       (v) information obtained or furnished under this title in 
     connection with international agreements, treaties, or 
     obligations,

     shall be withheld from public disclosure and shall not be 
     subject to disclosure under section 552 of title 5, United 
     States Code, unless the release of such information is 
     determined by the Secretary to be in the national interest.
       (2) Information to congress and gao.--
       (A) In general.--Nothing in this title shall be construed 
     as authorizing the withholding of information from the 
     Congress or from the General Accounting Office.
       (B) Availability to the congress.--
       (i) In general.--All information obtained at any time under 
     this title or previous Acts regarding the control of exports, 
     including any report or license application required under 
     this title, shall be made available to any committee or 
     subcommittee of Congress of appropriate jurisdiction upon 
     the request of the chairman or ranking minority member of 
     such committee or subcommittee.
       (ii) Prohibition on further disclosure.--No committee, 
     subcommittee, or Member of Congress shall disclose any 
     information obtained under this title or previous Acts 
     regarding the control of exports which is submitted on a 
     confidential basis to the Congress under clause (i) unless 
     the full committee to which the information is made available 
     determines that the withholding of the information is 
     contrary to the national interest.
       (C) Availability to the gao.--
       (i) In general.--Notwithstanding paragraph (1), information 
     referred to in subparagraph (B) shall, consistent with the 
     protection of intelligence, counterintelligence, and law 
     enforcement sources, methods, and activities, as determined 
     by the agency that originally obtained the information, and 
     consistent with the provisions of section 716 of title 31, 
     United States Code, be made available only by the agency, 
     upon request, to the Comptroller General of the United States 
     or to any officer or employee of the General Accounting 
     Office authorized by the Comptroller General to have access 
     to such information.
       (ii) Prohibition on further disclosures.--No officer or 
     employee of the General Accounting Office shall disclose, 
     except to the Congress in accordance with this paragraph, any 
     such information which is submitted on a confidential basis 
     and from which any individual can be identified.
       (3) Information exchange.--Notwithstanding paragraph (1), 
     the Secretary and the Commissioner of Customs shall exchange 
     licensing and enforcement information with each other which 
     is necessary to facilitate enforcement efforts and effective 
     license decisions.
       (4) Penalties for disclosure of confidential information.--
     Any officer or employee of the United States, or any 
     department or agency thereof, who publishes, divulges, 
     discloses, or makes known in any manner or to any extent not 
     authorized by law any confidential information that--
       (A) he or she obtains in the course of his or her 
     employment or official duties or by reason of any examination 
     or investigation made by, or report or record made to or 
     filed with, such department or agency, or officer or employee 
     thereof, and
       (B) is exempt from disclosure under this subsection,

     shall be fined not more than $10,000, or imprisoned not more 
     than one year, or both, shall be removed from office or 
     employment, and shall be subject to a civil penalty of not 
     more than $1,000 imposed by the Secretary under section 
     110(c).
       (h) Authority for Seminar and Publications Fund.--The 
     Secretary is authorized to cooperate with public agencies, 
     other governments, international organizations, private 
     individuals, private associations, and other groups in 
     connection with seminars, publications, and related 
     activities to carry out export activities, including 
     educating the public or government officials on the 
     application of this title and the regulations issued under 
     this title. The Secretary is further authorized to accept 
     contributions of funds, property, or services in connection 
     with such activities to recover the cost of such programs and 
     activities. Contributions may include payments for materials 
     or services provided as part of such activities. The 
     contributions collected may be retained for use in covering 
     the costs of such activities, and for providing information 
     to the public with respect to this title and other export 
     control programs of the United States and other governments.
       (i) Support of Other Countries' Export Control Program.--
     The Secretary is authorized to participate in and provide 
     training to officials of other countries on the principles 
     and procedures for the implementation of effective export 
     controls and may participate in any such training provided by 
     other departments and agencies of the United States.
       (j) Incorporated Commodities and Technology.--
       (1) Commodities containing controlled parts and 
     components.--Controls may not be imposed under this title or 
     any other provision of law for a commodity solely because the 
     commodity contains parts or components subject to export 
     controls under this title if such parts or components--
       (A) are essential to the functioning of the commodity,

[[Page H7579]]

       (B) are customarily included in sales of the commodity in 
     countries other than controlled countries, and
       (C) comprise 25 percent or less of the total value of the 
     commodity,

     unless the commodity itself, if exported, would by virtue of 
     the functional characteristics of the commodity as a whole 
     make a significant contribution to the military or 
     proliferation potential of a controlled country or end user 
     which would prove detrimental to the national security of the 
     United States.
       (2) Reexports of foreign-made items incorporating u.s. 
     items.--
       (A) Commodities.--(i) No authority or permission may be 
     required under section 105 or section 106 to reexport to a 
     country other than a terrorist country or an embargoed 
     country a commodity that is produced in a country other than 
     the United States and incorporates commodities that are 
     subject to the jurisdiction of the United States, if the 
     value of the controlled United States content of the 
     commodity produced in such other country is 25 percent or 
     less of the total value of the commodity.
       (ii) No authority or permission may be required under 
     section 105 or section 106 to reexport to a terrorist country 
     or to an embargoed country a commodity that is produced in a 
     country other than the United States and incorporates 
     commodities that are subject to the jurisdiction of the 
     United States, if the value of the controlled United States 
     content of the commodity produced in such other country is 10 
     percent or less of the total value of the commodity.
       (B) Technology.--(i) No authority or permission may be 
     required under section 105 or section 106 to reexport to a 
     country other than a terrorist country or an embargoed 
     country technology that is produced in a country other than 
     the United States and is commingled with or drawn from 
     technology that is produced in the United States, if the 
     value of the controlled United States content of the 
     technology produced in such other country is 25 percent or 
     less of the total value of the technology.
       (ii) No authority or permission may be required under 
     section 105 or section 106 to reexport to a terrorist country 
     or an embargoed country technology that is produced in a 
     country other than the United States and is commingled with 
     or drawn from technology that is produced in the United 
     States, if the value of the controlled United States content 
     of the technology produced in such other country is 10 
     percent or less of the total value of the technology.
       (C) Definitions.--For purposes of this paragraph--
       (i) the ``controlled United States content'' of a commodity 
     or technology means those commodities or technology that--

       (I) are subject to the jurisdiction of the United States;
       (II) are incorporated into the commodity or technology; and
       (III) would, at the time of the reexport, require a license 
     under section 105 or 106 if exported from the United States 
     to a country to which the commodity or technology is to be 
     reexported;

       (ii) an ``embargoed country'' is a country against which an 
     embargo is in effect under the Trading with the Enemy Act, 
     the International Emergency Economic Powers Act, or other 
     provision of law; and
       (iii) a ``terrorist country'' is a country with respect to 
     which a determination is in effect that was made under 
     section 106(i)(1)(A) of this Act, or section 6(j)(1)(A) of 
     the Export Administration Act of 1979, that the government of 
     such country has repeatedly provided support for acts of 
     international terrorism.
       (3) Treatment of technology and source code.--For purposes 
     of this subsection, technology and source code used to design 
     or produce foreign-made commodities are not deemed to be 
     incorporated into such foreign-made commodities.
       (4) Reporting requirements.--Notwithstanding paragraphs (1) 
     through (3), the Secretary may require persons to report to 
     the Department of Commerce their proposed calculations and 
     underlying data sufficient for the Department of Commerce to 
     evaluate the adequacy of those calculations and data related 
     to commodities and technology before a reexporter may rely 
     upon the exclusions from controls provided in this 
     subsection.
       (5) Exceptions.--Paragraphs (1) and (2) do not require any 
     changes to regulations in effect on the effective date of 
     this title and, notwithstanding paragraphs (1) and (2), 
     controls may be imposed on commodities or technology 
     transferred, after March 1, 1996, from export control under 
     the Arms Export Control Act to control under this title if 
     those commodities or technology are designated by the 
     President for exemption from paragraph (1) or (2), as the 
     case may be.
       (k) Unfair Impact on United States Exporter.--
       (1) Policy.--It is the policy of the United States that no 
     United States exporter should be affected unfairly by export 
     control policies or practices unless relief from such 
     controls would create a significant risk to the foreign 
     policy, nonproliferation, or national security interests of 
     the United States.
       (2) Relief from export controls.--(A) A person may petition 
     the Secretary for relief from current export control 
     requirements (other than control requirements specifically 
     imposed by this title or other provisions of law) on the 
     basis of foreign availability. A person may also petition the 
     Secretary for approval of an export license application on 
     other grounds which the Secretary, with the concurrence of 
     the Secretary of Defense, shall establish by regulation. The 
     Secretary shall, upon receipt of such petitions, and may, on 
     his or her initiative, conduct assessments for providing 
     relief based upon these grounds.
       (B) For purposes of this subsection, foreign availability 
     exists when the controlled item is available in fact, under 
     terms and conditions established by the Secretary with the 
     concurrence of the secretary of Defense, to controlled 
     countries or end users from sources outside the United States 
     so that the requirement for a license is or would be 
     ineffective in achieving the purpose of the control.
       (3) Provisions for relief.--The Secretary, in consultation 
     with appropriate departments and agencies, shall make 
     determinations of facts under paragraph (2), addressing, in 
     the case of a petition filed under paragraph (2), each ground 
     for relief asserted in the petition, and, subject to 
     paragraph (4), shall provide at least one of the following 
     forms of relief to persons that meet the criteria in 
     paragraph (2):
       (A) Change the control status of, or licensing requirements 
     on, all or some of the items in question so as to eliminate 
     the unfair impact.
       (B) Selectively approve the sale of controlled items so as 
     to eliminate the unfair impact.
       (C) Seek multilateral support to eliminate the source of 
     unfair impact. If relief under this subparagraph is chosen 
     and if such efforts fail to achieve multilateral support, 
     then the Secretary, not later than 330 days from the date of 
     the Secretary's initiation of the assessment under paragraph 
     (2), shall provide other relief pursuant to subparagraph (A) 
     or (B) or conclude pursuant to paragraph (4) that the 
     granting of such relief would create a significant risk to 
     United States nonproliferation, foreign policy, or national 
     security interests.

     A determination that a petitioner qualifies for relief under 
     paragraph (2) shall not compel the United States to remove 
     controls from an item that remains subject to control by a 
     multilateral regime.
       (4) Exceptions from relief.--The Secretary shall provide 
     relief under paragraph (3) to a petitioner who qualifies for 
     relief under paragraph (2) unless the Secretary concludes 
     that the granting of such relief would create a significant 
     risk to United States nonproliferation, foreign policy, or 
     national security interests. In the event the Secretary 
     determines to grant such relief, he or she may do so unless 
     the President determines that such relief would create a 
     significant risk to the foreign policy, nonproliferation, or 
     national security interests of the United States.
       (5) Procedures.--
       (A) Publication.--In any case in which the President or the 
     Secretary determines that relief under paragraph (3) will not 
     be granted, notwithstanding the existence of facts that 
     constitute a basis for granting relief, the Secretary shall 
     publish that determination, together with a concise statement 
     of its basis and the estimated economic impact of the 
     decision.
       (B) Notice of assessments.--Whenever the Secretary 
     undertakes an assessment under paragraph (2), the Secretary 
     shall publish in the Federal Register notice of the 
     initiation of such assessment.
       (C) Procedures for making determinations.--During the 
     conduct of an assessment under this subsection, the Secretary 
     shall consult with other appropriate departments and agencies 
     concerning the assessment. The Secretary shall make a 
     determination as to whether relief is required under 
     paragraph (2) within 120 days after the date of the 
     Secretary's receipt of the petition requesting relief or the 
     date of the Secretary's initiation of the assessment (as the 
     case may be) and shall so notify the applicant. If the 
     Secretary has determined that relief is appropriate, the 
     Secretary shall, upon making such a determination, submit the 
     determination for review to the Department of Defense and 
     other appropriate departments and agencies for consultations 
     regarding the findings and the relief selected. If the 
     Secretary of Defense or other department or agency head 
     disagrees with the Secretary's determination, he or she may 
     appeal the determination to the President in writing, but 
     only on the basis of the criteria set forth in paragraph (4). 
     The President shall resolve any such disagreement so that, in 
     all cases, not later than 150 days after the date of the 
     Secretary's receipt of the petition requesting relief or the 
     date of the Secretary's initiation of the assessment (as the 
     case may be), the Secretary responds in writing to the 
     petitioner and submits for publication in the Federal 
     Register, that--
       (i) unfair impact exists and--

       (I) the requirement of a license has been removed;
       (II) the control status of all or some of the items in 
     question has been changed so as to eliminate the unfair 
     impact;
       (III) the sale of controlled items has been approved so as 
     to eliminate the unfair impact;
       (IV) export controls under this title are to be maintained 
     notwithstanding the finding under paragraph (2); or
       (V) the United States recommendation to remove the license 
     requirement or change the control status will be submitted to 
     a relevant multilateral regime for consideration for a period 
     of not more than 180 days beginning on the date of the 
     publication; or

[[Page H7580]]

       (ii) a right to relief under paragraph (2) does not exist.

     The reasons for maintaining export controls under clause 
     (i)(IV) shall be included in the submission to the petitioner 
     and the publication. In any case in which the submission for 
     publication is not made within the 150-day period required by 
     this subparagraph, the Secretary may not thereafter require a 
     license for the export of items that are the subject of the 
     allegation under paragraph (2).
       (D) Negotiations to eliminate unfair impact.--(i) In any 
     case in which export controls are maintained under this 
     section pursuant to paragraph (4) despite a determination of 
     unfair impact, the Secretary of State shall actively pursue 
     negotiations with the governments of the appropriate foreign 
     countries for the purpose of eliminating the unfair impact. 
     No later than the commencement of such negotiations, the 
     Secretary of State shall notify the Congress in writing that 
     the Secretary of State has begun such negotiations and why it 
     is important that export controls on the items involved be 
     maintained to avoid a significant risk to the foreign policy, 
     nonproliferation, or national security interests of the 
     United States.
       (ii) Whenever the Secretary of State has reason to believe 
     that items subject to export controls by the United States 
     may become available in fact from other countries to 
     controlled countries and that such availability can be 
     prevented or eliminated by means of negotiations with such 
     other countries, the Secretary of State shall promptly 
     initiate negotiations with the governments of such other 
     countries to prevent such foreign availability.
       (6) Sharing of information.--Each department or agency of 
     the United States, including any intelligence agency, and all 
     contractors with any such department or agency, shall, upon 
     the request of the Secretary and consistent with the 
     protection of intelligence sources and methods, furnish 
     information to the Department of Commerce concerning foreign 
     availability of items subject to export controls under this 
     title. Consistent with the protection of intelligence sources 
     and methods and classification restrictions, each such 
     department or agency shall allow the Department of Commerce 
     access to such information from a laboratory or other 
     facility within such department or agency.
       (7) Congressional notification and reporting 
     requirements.--The Secretary shall each year notify the 
     Congress of all petitions for relief under this subsection 
     and the status of all such petitions.
       (l) Exceptions for Medical and Humanitarian Purposes.--This 
     title does not authorize controls on--
       (1) medicine or medical supplies; or
       (2) donations of items that are intended to meet basic 
     human needs, including food, educational materials, seeds, 
     hand tools, water resources equipment, clothing and shelter 
     materials, and basic household supplies.
       (m) Sanctity of Existing Contracts and Licenses.--
       (1) In general.--In the case of a control imposed under 
     section 106 on the export of any items, the President may not 
     prohibit the export of those items--
       (A) in performance of a contract, agreement, or other 
     contractual commitment entered into before the date on which 
     the control is initially imposed, or the date on which the 
     President reports to the Congress the President's intention 
     to impose the control, whichever date occurs first, or
       (B) under a license or other authorization issued under 
     this title before the date on which the control is initially 
     imposed, or the date on which the President reports to the 
     Congress the President's intention to impose the control, 
     whichever date occurs first.
       (2) Exception.--The prohibition in paragraph (1) shall not 
     apply if the President determines and certifies to the 
     Congress that--
       (A) a breach of the peace poses a serious and direct threat 
     to the strategic interest of the United States;
       (B) the prohibition of exports under each such contract, 
     agreement, commitment, license, or authorization will be 
     directly instrumental in remedying the situation posing the 
     direct threat; and
       (C) the export controls will continue only so long as the 
     direct threat persists.
     The authority of the President to make determinations under 
     this paragraph may not be delegated.
       (n) Publication of Decisions and Actions of the 
     Secretary.--
       (1) In general.--The Secretary shall publish in the Federal 
     Register, to the greatest extent practicable, actions, 
     procedures, and decisions of the Secretary under this title, 
     taking into account restrictions on disclosure of classified 
     or confidential information. The Secretary shall publish in 
     the Federal Register calculations by the Secretary of 
     commonly-used control index parameters for commodities and 
     technologies, including all officially accepted composite 
     theoretical performance calculations for computers and 
     microprocessors, except in a case in which a private party 
     requested the calculation and asked that it not be published.
       (2) Notice of revisions.--Whenever the Secretary makes any 
     revision in the control index with respect to any commodity 
     or technology, or with respect to any country or destination 
     affected by controls imposed under section 105 or section 
     106, the Secretary shall publish in the Federal Register a 
     notice of such revision and shall specify in such notice 
     under which authority the revision is being made.
       (o) Notification of the Public; Consultation With Industry; 
     Recordkeeping.--
       (1) Notification of the public.--The Secretary shall keep 
     the public fully apprised of changes in export control policy 
     and procedures instituted under this title with a view to 
     encouraging trade.
       (2) Consultation with industry.--The Secretary shall meet 
     regularly with export advisory committees appointed under 
     section 104(f) in order to obtain their views on United 
     States export control policy and the foreign availability of 
     commodities and technology.
       (p) Export Control Duties.--
       (1) Assignment.--The Secretary shall ensure that at least 
     one full-time representative of the Department of Commerce 
     stationed in the People's Republic of China has duties 
     related to the implementation of export controls under this 
     title. These duties shall include giving priority to 
     conducting postshipment verifications and prelicense checks, 
     and to using other means to ensure that United States exports 
     from the United States of dual use items are not diverted to 
     unauthorized end uses or end users.
       (2) Other resources.--The Secretary shall ensure that 
     appropriate resources are made available and, if necessary, 
     new procedures established to assist the representative or 
     representatives of the Department of Commerce referred to in 
     paragraph (1) in carrying out their duties and to ensure that 
     sensitive items are not diverted to inappropriate end uses or 
     end users in the People's Republic of China. Efforts to carry 
     out this paragraph shall include appropriate coordination 
     with United States officials in Hong Kong to ensure that 
     sensitive items exported to Hong Kong are protected from 
     diversion.
       (3) Authorization of appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     paragraph (1).
       (q) Authorization for Technical Data.--A license 
     authorizing the export of any commodities or technology under 
     this title shall also authorize the export of operation 
     technical data related to such commodities or technology, if 
     the technical level of the data does not exceed the minimum 
     necessary to install, repair, maintain, inspect, operate, or 
     use the commodities or technology.
       (r) Licenses for Spare Parts Not Required.--A license shall 
     not be required under this title for replacement parts which 
     are exported to replace on a one-for-one basis parts that 
     were in a commodity that was lawfully exported from the 
     United States, unless the President determines that such a 
     license should be required for such parts.

     SEC. 115. ANNUAL REPORT.

       (a) Contents.--Not later than March 1 of each year, the 
     Secretary shall submit to the Congress a report on the 
     administration of this title during the preceding calendar 
     year. All agencies shall cooperate fully with the Secretary 
     in providing information for such report. Such report shall 
     include detailed information on the following:
       (1) The implementation of the policies set forth in section 
     103, including delegations of authority by the President 
     under section 104(d), consultations with the export advisory 
     committees established under section 104(f), and any changes 
     in the exercise of the authorities contained in sections 
     105(a), 106(a), 107(a), and 108(a).
       (2) With respect to multilateral export controls imposed or 
     maintained under section 105, the following:
       (A) Adjustments to multilateral export controls.
       (B) The exercise of the Secretary's authority under section 
     105(e).
       (3) Determinations made under section 114(k), the criteria 
     used to make such determinations, the removal of any export 
     controls under such section, and any evidence demonstrating a 
     need to maintain export controls notwithstanding 
     determinations made under paragraph (2) of section 114(k).
       (4) Short supply controls and monitoring under section 107.
       (5) Organizational and procedural changes undertaken in 
     furtherance of the policies set forth in this title, 
     including changes to increase the efficiency of the export 
     licensing process and to fulfill the requirements of section 
     109, including an accounting of appeals received, and actions 
     taken pursuant thereto, under section 109(g).
       (6) Violations under section 110 and enforcement activities 
     under section 113.
       (7) The issuance of regulations under this title.
       (8) The results, in as much detail as may be included 
     consistent with the strategic and political interests of the 
     United States and the need to maintain the confidentiality of 
     proprietary information, of the reviews of the multilateral 
     control list, and any revisions to the list resulting from 
     such reviews, required by section 105.
       (b) Comparative Report on Export Control Systems Among 
     Countries.--The Secretary shall include, in each annual 
     report under subsection (a), a description of significant 
     differences between the export control laws and regulations 
     of the United States and its major trade competitors, 
     particularly as these differences relate to the 
     implementation of multilateral export control regimes. The 
     Secretary shall include--
       (1) an assessment of the impact of these differences on 
     important interests of the United States;
       (2) a description of the extent to which the executive 
     branch intends to address these differences; and

[[Page H7581]]

       (3) a listing of unilateral controls and embargoes imposed 
     by the United States that are in effect, with a 
     quantification of their economic impact, including the effect 
     of such controls and embargoes on employment in the United 
     States.
       (c) GAO Report.--The Comptroller General shall prepare and 
     submit to the Congress, not later than 120 days after each 
     report under subsection (b) is submitted, an analysis of such 
     report.

     SEC. 116. DEFINITIONS.

       As used in this title:
       (1) Affiliate.--The term ``affiliate'' includes both 
     governmental entities and commercial entities that are 
     controlled in fact by a country.
       (2) Adherent.--An ``adherent'' to a multilateral regime is 
     a country that is a member of that regime or that, pursuant 
     to an international understanding to which the United States 
     is a party, controls exports in accordance with the criteria 
     and standards of that regime.
       (3) Australia group.--The term ``Australia Group'' means 
     the multilateral regime in which the United States 
     participates that seeks to prevent the proliferation of 
     chemical and biological weapons.
       (4) Chemical weapons convention.--The term ``Chemical 
     Weapons Convention'' refers to the Convention on the 
     Prohibition of the Development, Production, Stockpiling and 
     Use of Chemical Weapons and on Their Destruction of 1992.
       (5) Commodity.--The term ``commodity'' means any article, 
     natural or manmade substance, material, software, source 
     code, supply, or manufactured product, including inspection 
     and test equipment, and excluding technical data.
       (6) Control or controlled.--The terms ``control'' and 
     ``controlled'' refer to a licensing requirement, a written 
     reexport authorization requirement, or a prohibition on an 
     export.
       (7) Control index.--The term ``control index'' means the 
     United States Commodity Control Index established under 
     section 104(b)(1).
       (8) Controlled country.--The term ``controlled country'' 
     means a country to which exports are controlled under section 
     105 or 106.
       (9) Export.--(A) The term ``export''--
       (i) means--
       (I) an actual shipment, transfer, or transmission of items 
     out of the United States; and
       (II) a transfer to any person of items either within the 
     United States or outside of the United States with the 
     knowledge or intent that the items will be shipped, 
     transferred, or transmitted outside the United States; and
       (ii) includes the term ``reexport''.
       (B) The Secretary may further define the term export by 
     regulation to include, among other concepts, that--
       (i) a transfer of items in the United States to an embassy 
     or affiliate of a country is an export to the country,
       (ii) disclosure of technology to a foreign person is deemed 
     to be an export to the country of which he or she is a 
     national, and
       (iii) transfer of effective control from one country to 
     another over a satellite above the earth is an export from 
     one country to another.
       (C) As used in this paragraph, the term ``foreign person'' 
     means--
       (i) an individual who is not a United States citizen or an 
     alien lawfully admitted for permanent residence to the United 
     States;
       (ii) any corporation, partnership, business association, 
     society, trust, organization, or other nongovernmental entity 
     created or organized under the laws of a foreign country or 
     that has its principal place of business outside the United 
     States; and
       (iii) any governmental entity of a foreign country that is 
     operating as a business enterprise.
       (10) Export control regime, multilateral export control 
     regime, multilateral regime, and regime.--The terms ``export 
     control regime'', ``multilateral export control regime'', 
     ``multilateral regime'', and ``regime'' each means an 
     international agreement or an arrangement among two or more 
     countries, including the United States, a purpose of which is 
     to coordinate national export control policies of 
     participating countries regarding certain items. Such terms 
     include the Australia Group, the Wassenaar Arrangement, the 
     MTCR, and the Nuclear Supplies Group.
       (11) Foreign availability, available in fact to controlled 
     countries.--The terms ``foreign availability'' and 
     ``available in fact to controlled countries'' each include 
     production or availability of any item from any country--
       (A) in which the item is not restricted for export to any 
     controlled country; or
       (B) in which such export restrictions are determined by the 
     Secretary to be ineffective.

     For purposes of subparagraph (B), the mere inclusion of items 
     on a list of items subject to export controls imposed 
     pursuant to a multilateral export control regime shall not 
     alone constitute credible evidence that the government of a 
     country provides an effective means of controlling the export 
     of such items to controlled countries.
       (12) Item.--The term ``item'' means any commodity, 
     technology, or other information.
       (13) Licensing requirement.--The term ``licensing 
     requirement'' includes any restriction or condition, 
     including recordkeeping and reporting, imposed by the 
     Secretary under this title in licensing the export of a 
     commodity, technology, or other information.
       (14) Member of an export control regime.--A ``member'' of 
     an export control regime, multilateral export control regime, 
     multilateral regime, or regime is a country that participates 
     in that regime.
       (15) Missile.--The term ``missile'' means any missile 
     system or component listed in category I of the MTCR Annex, 
     and any other unmanned delivery system or component of 
     similar capability, as well as the specially designed 
     production facilities for these systems.
       (16) Missile technology control regime; mtcr.--The term 
     ``Missile Technology Control Regime'' or ``MTCR'' means the 
     policy statement and guidelines 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-related transfers based on the 
     MTCR Annex, and any amendments thereto.
       (17) MTCR annex.--The term ``MTCR Annex'' means the 
     Equipment and Technology Annex of the MTCR, and any 
     amendments thereto.
       (18) Nuclear explosive device.--The term ``nuclear 
     explosive device'' means any device, whether assembled or 
     disassembled, that is designed to produce an instantaneous 
     release of an amount of nuclear energy from special nuclear 
     material that is greater than the amount of energy that would 
     be released from the detonation of one pound of 
     trinitrotoluene (TNT).
       (19) Nuclear suppliers' group.--The term ``Nuclear 
     Suppliers' Group'' means the multilateral arrangement in 
     which the United States participates whose purpose is to 
     restrict the transfers of items with relevance to the nuclear 
     fuel cycle or nuclear explosive applications.
       (20) Person.--Except as provided in section 111, the term 
     ``person'' includes--
       (A) the singular and the plural and any individual, 
     partnership, corporation, business association, society, 
     trust, organization, or any other group created or organized 
     under the laws of a country; and
       (B) any government, or any governmental body, corporation, 
     trust, agency, department, or group, operating as a business 
     enterprise.
       (21) Reexport.--The term ``reexport'' means the shipment, 
     transfer, transshipment, or diversion of items from one 
     foreign country to another.
       (22) Secretary.--The term ``Secretary'' means the Secretary 
     of Commerce or any successor officer performing functions of 
     the Secretary of Commerce under this title.
       (23) Technology.--The term ``technology'' means specific 
     information that is necessary for the development, 
     production, or use of a commodity, including source code, and 
     that takes the form of technical data or technical 
     assistance.
       (24) Unilateral and unilaterally.--The terms ``unilateral'' 
     and ``unilaterally'', with respect to an export control on a 
     commodity or technology, refer to a control that is not 
     similarly imposed in similar circumstances by any country 
     other than the United States, and that materially restricts 
     the export of the commodity or technology.
       (25) United states.--The term ``United States'' means the 
     States of the United States, the District of Columbia, and 
     any commonwealth, territory, dependency, or possession of the 
     United States, and includes the outer Continental Shelf, as 
     defined in section 2(a) of the Outer Continental Shelf Lands 
     Act (43 U.S.C. 1331(a)).
       (26) United states person.--The term ``United States 
     person'' means any United States citizen, resident, or 
     national (other than an individual resident outside the 
     United States and employed by other than a United States 
     person), any domestic concern (including any permanent 
     domestic establishment of any foreign concern) and any 
     foreign subsidiary or affiliate (including any permanent 
     foreign establishment) of any domestic concern which is 
     controlled in fact by such domestic concern, as determined 
     under regulations of the President.
       (27) Wassenaar arrangement.--The term ``Wassenaar 
     Arrangement'' means the multilateral regime in which the 
     United States participates that seeks to promote transparency 
     and responsibility with regard to the transfers of 
     conventional armaments and sensitive dual-use goods and 
     technologies.
       (28) Weapon of mass destruction.--The term ``weapon of mass 
     destruction'' means any chemical, biological, or nuclear 
     weapon, including a nuclear explosive device.

     SEC. 117. EFFECTS ON OTHER ACTS.

       (a) Commodity Jurisdiction.--
       (1) Coordination of controls.--The authority granted under 
     this title and under section 38 of the Arms Export Control 
     Act (22 U.S.C. 2778) shall be exercised in such a manner as 
     to achieve effective coordination between the licensing 
     systems under this title and such section 38 and to share 
     information regarding the trustworthiness of parties.
       (2) Elimination of overlapping controls.--Notwithstanding 
     any other provision of law, no item may be included on both 
     the control index and the United States Munitions List after 
     the date of the enactment of this Act.

[[Page H7582]]

       (3) Commodity jurisdiction dispute resolution.--The 
     President shall establish procedures for the resolution of 
     commodity jurisdiction disputes among departments and 
     agencies of the United States. Such disputes shall normally 
     be resolved within 60 days, and the procedures shall allow 
     disputes to be referred to the President normally within 90 
     days. These procedures shall also--
       (A) require the Secretary and the Secretary of State to 
     refer matters to each other in accordance with their 
     respective jurisdictions;
       (B) require transparency, among the Secretary, the 
     Secretary of State, and the Secretary of Defense, in 
     commodity jurisdiction cases and commodity classification 
     requests and determinations;
       (C) provide for interagency meetings and consultations to 
     permit the free exchange of views regarding significant 
     jurisdictional issues; and
       (D) provide deadlines for action and standards for 
     decision, and ensure that disputes that cannot be resolved 
     may be referred to the President by the Secretary of State, 
     the Secretary of Defense, or the Secretary.
       (b) In General.--Except as otherwise provided in this 
     title, nothing 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 
     commodities, technology, or other information.
       (c) Licensing Process.--The provisions of section 109 shall 
     supersede the procedures published pursuant to section 309(c) 
     of the Nuclear Non-Proliferation Act of 1978 (42 U.S.C. 
     2139a(c)) to the extent such procedures are inconsistent with 
     the provisions of section 109.
       (d) Amendments to the International Emergency Economic 
     Powers Act.--
       (1) Exercise of presidential authority.--(A) Section 204(b) 
     of the International Emergency Economic Powers Act (50 U.S.C. 
     1703(b)) is amended--
       (i) by striking ``and'' at the end of paragraph (4);
       (ii) by striking the period at the end of paragraph (5) and 
     inserting ``; and''; and
       (iii) by adding at the end the following:
       ``(6) if the action is being taken unilaterally--
       ``(A) why the President believes the action is necessary to 
     meet the unusual and extraordinary threat referred to in 
     paragraph (2); and
       ``(B) what steps the President is taking to gain 
     multilateral support for the action.''.
       (B) Section 204(c) of that Act (50 U.S.C. 1703(c)) is 
     amended--
       (i) by striking ``(5)'' and inserting ``(6)''; and
       (ii) by striking the period and inserting ``, and, in the 
     case of controls referred to in paragraph (6) of subsection 
     (b), the President shall report to the Congress on the 
     economic losses that have occurred as a result of the 
     unilateral action''.
       (2) Confidentiality of information.--The International 
     Emergency Economic Powers Act is amended--
       (A) by redesignating section 208 as section 209; and
       (B) by inserting after section 207 the following:

     ``SEC. 208. CONFIDENTIALITY OF INFORMATION.

       ``(a) Exemptions From Disclosure.--Information obtained 
     under this title before or after the enactment of this 
     section may be withheld only to the extent permitted by 
     statute, except that information submitted, obtained, or 
     considered in connection with any transaction that would 
     otherwise be prohibited under this title, including--
       ``(1) the license or other authorization itself,
       ``(2) classification requests or other inquiries on the 
     applicability of export license requirements to a proposed 
     transaction or series of transactions,
       ``(3) information or evidence obtained in the course of any 
     investigation, and
       ``(4) information obtained or furnished under this title in 
     connection with international agreements, treaties, or 
     obligations,

     shall be withheld from public disclosure, and shall not be 
     subject to disclosure under section 552 of title 5, United 
     States Code, unless the release of such information is 
     determined by the Secretary of Commerce or the Secretary of 
     the Treasury to be in the national interest. In the case of 
     information obtained or furnished under this title in 
     connection with international agreements, treaties, or 
     obligations, such a determination may be made only after 
     consultation with the Secretary of State.
       ``(b) Information to Congress and GAO.--
       ``(1) In general.--Nothing in this title shall be construed 
     as authorizing the withholding of information from the 
     Congress or from the General Accounting Office.
       ``(2) Availability to the congress.--
       ``(A) In general.--All information obtained at any time 
     under this title regarding the control of exports, including 
     any report or license application required under this title, 
     shall be made available to any committee or subcommittee of 
     Congress of appropriate jurisdiction upon the request of the 
     chairman or ranking minority member of such committee or 
     subcommittee.
       ``(B) Prohibition on further disclosure.--No committee, 
     subcommittee, or Member of Congress shall disclose any 
     information obtained under this title or previous Acts 
     regarding the control of exports which is submitted on a 
     confidential basis to the Congress under subparagraph (A) 
     unless the full committee to which the information is made 
     available determines that the withholding of the information 
     is contrary to the national interest.
       ``(3) Availability to the gao.--
       ``(A) In general.--Notwithstanding paragraph (1), 
     information referred to in paragraph (2) shall, consistent 
     with the protection of intelligence, counterintelligence, and 
     law enforcement sources, methods, and activities, as 
     determined by the agency that originally obtained the 
     information, and consistent with the provisions of section 
     716 of title 31, United States Code, be made available only 
     by the agency, upon request, to the Comptroller General of 
     the United States or to any officer or employee of the 
     General Accounting Office authorized by the Comptroller 
     General to have access to such information.
       ``(B) Prohibition on further disclosures.--No officer or 
     employee of the General Accounting Office shall disclose, 
     except to the Congress in accordance with this subsection, 
     any such information which is submitted on a confidential 
     basis and from which any individual can be identified.
       ``(c) Penalties for Disclosure of Confidential 
     Information.--Any officer or employee of the United States, 
     or any department or agency thereof, who publishes, divulges, 
     discloses, or makes known in any manner or to any extent not 
     authorized by law any confidential information that--
       ``(1) he or she obtains in the course of his or her 
     employment or official duties or by reason of any examination 
     or investigation made by, or report or record made to or 
     filed with, such department or agency, or officer or employee 
     thereof, and
       ``(2) is exempt from disclosure under this section,

     shall be fined not more than $10,000, or imprisoned not more 
     than 1 year, or both, shall be removed from office or 
     employment, and shall be subject to a civil penalty of not 
     more than $1,000.''.
       (3) Penalties.--Section 206 of the International Emergency 
     Economic Powers Act (50 U.S.C. 1705) is amended--
       (A) in subsection (a) by inserting ``, or attempts to 
     violate,'' after ``violates''; and
       (B) in subsection (b) by inserting ``, or willfully 
     attempts to violate,'' after ``violates''.
       (e) Amendments to the Trading With the Enemy Act.--Section 
     16 of the Trading With the Enemy Act (50 U.S.C. App. 16) is 
     amended--
       (1) in subsection (a)--
       (A) by inserting ``, or attempt to violate,'' after 
     ``violate'' the first place it appears; and
       (B) by inserting ``attempt to violate,'' after ``violate,'' 
     the second place it appears; and
       (2) in subsection (b)(1) by inserting ``, or attempts to 
     violate,'' after ``violates''.
       (f) Report on OFAC and ODTC.--
       (1) Study on ofac.--The Secretary of the Treasury shall 
     study ways to make the operations of the Office of Foreign 
     Assets Control of the Department of the Treasury more 
     effective and efficient in responding to licensing requests 
     and other inquiries of United States exporters, including 
     through the upgrading of technology in that office.
       (2) Study on odtc.--The Secretary of State shall study ways 
     to make the Office of Defense Trade Controls of the 
     Department of State more effective and efficient in 
     responding to licensing requests and other inquiries of 
     United States exporters, including through the upgrading of 
     technology in that office.
       (3) Submission of reports.--Not later than 6 months after 
     the date of the enactment of this Act, the Secretary of the 
     Treasury shall submit to the Congress a report on the study 
     conducted under paragraph (1) and the Secretary of State 
     shall submit to the Congress a report on the study conducted 
     under paragraph (2).

     SEC. 118. SECONDARY ARAB BOYCOTT.

       (a) Sense of Congress.--
       (1) Ending secondary boycott.--It is the sense of the 
     Congress that the countries of the Arab League should end the 
     secondary Arab boycott.
       (2) Actions to end secondary boycott.--The United States 
     will consider the secondary Arab boycott to have ended when--
       (A) the Arab League issues a public pronouncement that the 
     Arab League has ended the secondary Arab boycott;
       (B) all activities carried out by the Central Office for 
     the Boycott of Israel in support of the secondary Arab 
     boycott have been terminated;
       (C) the Arab League and the individual countries that are 
     members of the Arab League have terminated the practice of 
     barring United States persons and foreign companies that do 
     not comply with the secondary Arab boycott from doing 
     business with countries that are members of the Arab League, 
     and have declared null and void any existing list of such 
     barred persons and companies; and
       (D) the Arab League, and the individual countries that are 
     the members of the Arab League, have ceased requesting United 
     States persons to take actions prohibited under section 
     108(a).
       (b) Definition.--For purposes of this section, the term 
     ``secondary Arab boycott'' means the refusal to do business 
     with persons who do not comply with requests to take any 
     action prohibited under section 108(a) with respect to 
     Israel.

     SEC. 119. CONFORMING AMENDMENTS.

       (a) Arms Export Control Act.--
       (1) Section 38 of the Arms Export Control Act (22 U.S.C. 
     2778) is amended--

[[Page H7583]]

       (A) in subsection (e)--
       (i) in the first sentence by striking ``subsections (c)'' 
     and all that follows through ``12 of such Act'' and inserting 
     ``subsections (b), (c), (d) and (e) of section 110 of the 
     Export Administration Act of 1996, by subsections (a) and (b) 
     of section 113 of such Act, and by section 114(g) of such 
     Act''; and
       (ii) in the third sentence by striking ``11(c) of the 
     Export Administration Act of 1979'' and inserting ``110(c) of 
     the Export Administration Act of 1996''; and
       (B) in subsection (g)(1)(A) by striking clause (ii) and 
     inserting the following:
       ``(ii) section 110 of the Export Administration Act of 
     1996,''.
       (2) Section 39A(c) of the Arms Export Control Act, as added 
     by the Foreign Relations Authorization Act, Fiscal Years 1994 
     and 1995, is amended--
       (A) by striking ``(c),'' and all that follows through 
     ``12(a) of such Act'' and inserting ``(c), (d), and (e) of 
     section 110, section 112(c), and subsections (a) and (b) of 
     section 113, of the Export Administration Act of 1996''; and
       (B) by striking ``11(c)'' and inserting ``110(c)''.
       (3) Section 40(k) of the Arms Export Control Act (22 U.S.C. 
     2780(k)) is amended--
       (A) by striking ``11(c), 11(e), 11(g), and 12(a) of the 
     Export Administration Act of 1979'' and inserting ``110(b), 
     110(c), 110(e), 113(a), and 113(b) of the Export 
     Administration Act of 1996''; and
       (B) by striking ``11(c)'' and inserting ``110(c)''.
       (4) Section 73A of the Arms Export Control Act, as added by 
     the Foreign Relations Authorization Act, Fiscal Years 1995 
     and 1995, is amended by striking ``a MTCR adherent'' and 
     inserting ``an MTCR adherent''.
       (b) Other Provisions of Law.--
       (1) Section 5(b)(4) of the Trading with the Enemy Act (12 
     U.S.C. 95a(4); 50 U.S.C. App. 5(b)(4)) is amended by striking 
     ``section 5 of the Export Administration Act of 1979, or 
     under section 6 of that Act to the extent that such controls 
     promote the nonproliferation or antiterrorism policies of the 
     United States'' and inserting ``the Export Administration Act 
     of 1996''.
       (2) Section 502B(a)(2) of the Foreign Assistance Act of 
     1961 (22 U.S.C. 2304(a)(2)) is amended in the second 
     sentence--
       (A) by striking ``Export Administration Act of 1979'' the 
     first place it appears and inserting ``Export Administration 
     Act of 1996''; and
       (B) by striking ``Act of 1979)'' and inserting ``Act of 
     1996)''.
       (3)(A) Section 140(a) of the Foreign Relations 
     Authorization Act, Fiscal Years 1988 and 1989 (22 U.S.C. 
     2656f(a)) is amended--
       (i) in paragraph (1)(B) by inserting ``or section 106(i) of 
     the Export Administration Act of 1996'' after ``Act of 
     1979''; and
       (ii) in paragraph (2) by striking ``6(j) of the Export 
     Administration Act of 1979'' and inserting ``106(i) of the 
     Export Administration Act of 1996''.
       (B) For purposes of the report required by March 31, 1996, 
     under section 140(a) of the Foreign Relations Authorization 
     Act, Fiscal Years 1988 and 1989, the reference in paragraph 
     (2) of such section to ``section 106(i) of the Export 
     Administration Act of 1996'' shall be deemed to refer to 
     ``section 6(j) of the Export Administration Act of 1979 or 
     section 106(i) of the Export Administration Act of 1996''.
       (4) Section 40(e)(1) of the State Department Basic 
     Authorities Act of 1956 (22 U.S.C. 2712(e)(1)) is amended by 
     striking ``6(j)(1) of the Export Administration Act of 1979'' 
     and inserting ``106(i)(1) of the Export Administration Act of 
     1996''.
       (5) Section 110 of the International Security and 
     Development Cooperation Act of 1980 (22 U.S.C. 2778a) is 
     amended by striking ``Act of 1979'' and inserting ``Act of 
     1996''.
       (6) Section 205(d)(4)(B) of the State Department Basic 
     Authorities Act of 1956 (22 U.S.C. 4305(d)(4)(B)) is amended 
     by striking ``6(j) of the Export Administration Act of 1979'' 
     and inserting ``106(i) of the Export Administration Act of 
     1996''.
       (7) Section 203(b)(3) of the International Emergency 
     Economic Powers Act (50 U.S.C. 1702(b)(3)) is amended by 
     striking ``section 5 of the Export Administration Act of 
     1979, or under section 6 of such Act to the extent that such 
     controls promote the nonproliferation or antiterrorism 
     policies of the United States'' and inserting ``the Export 
     Administration Act of 1996''.
       (8) Section 491(f) of the Forest Resources Conservation and 
     Shortage Relief Act of 1990 (16 U.S.C. 620c(f)) is repealed.
       (9) Section 499 of the Forest Resources Conservation and 
     Shortage Relief Act of 1990 (16 U.S.C. 620j) is amended by 
     striking ``section 7 of the Export Administration Act of 
     1979'' and inserting ``section 107 of the Export Act of 
     1996''.
       (10) Section 1605 (a)(7)(A) of title 28, United States 
     Code, is amended by striking ``6(j) of the Export 
     Administration Act of 1979 (50 U.S.C. App. 2405(j))'' and 
     inserting ``106(i) of the Export Administration Act of 
     1996''.
       (11) Section 2332d(a) of title 18, United States Code, is 
     amended by striking ``6(j) of the Export Administration Act 
     (50 U.S.C. App. 2405)'' and inserting ``106(i) of the Export 
     Administration Act of 1996''.
       (12) Section 620H (a)(1) of the Foreign Assistance Act of 
     1961 (22 U.S.C. 2378(a)(1)) is amended by striking ``6(j) of 
     the Export Administration Act of 1979 (50 U.S.C. App. 
     2405(j))'' and inserting ``106(i) of the Export 
     Administration Act of 1996''.
       (13) Section 1621(a) of the International Financial 
     Institutions Act (22 U.S.C. 262p-4q(a)) is amended by 
     striking ``6(j) of the Export Administration Act of 1979 (50 
     U.S.C. App. 2405(j))'' and inserting ``106(i) of the Export 
     Administration Act of 1996''.
       (c) Repeal.--The Export Administration Act of 1979 is 
     repealed.

     SEC. 120. EXPIRATION DATE.

       This title expires on June 30, 2001.

     SEC. 121. SAVINGS PROVISIONS.

       (a) In General.--All delegations, rules, regulations, 
     orders, determinations, licenses, or other forms of 
     administrative action which have been made, issued, 
     conducted, or allowed to become effective under--
       (1) the Export Control Act of 1949, the Export 
     Administration Act of 1969, or the Export Administration Act 
     of 1979, or
       (2) those provisions of the Arms Export Control Act which 
     are amended by section 119,

     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 or the 
     Arms Export Control Act.
       (b) Administrative and Judicial Proceedings.--
       (1) Export administration act.--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, which 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.
       (2) Other provisions of law.--This title shall not affect 
     any administrative or judicial proceedings commenced or any 
     application for a license made, under those provisions of the 
     Arms Export Control Act which are amended by section 119, if 
     such proceedings or application is pending at the time this 
     title takes effect. Any such proceedings, and any action on 
     such application, shall continue under those provisions as if 
     those provisions had not been amended by section 119.
       (c) Treatment of Certain Determinations.--Any determination 
     with respect to the government of a foreign country under 
     section 6(j) of the Export Administration Act of 1979, that 
     is in effect at the time this title takes effect, shall, for 
     purposes of this title or any other provision of law, be 
     deemed to be made under section 106(i) of this Act until 
     superseded by a determination under such section 106(i).
               TITLE II--NUCLEAR PROLIFERATION PREVENTION

     SEC. 201. REPEAL OF TERMINATION OF PROVISIONS OF THE NUCLEAR 
                   PROLIFERATION PREVENTION ACT OF 1994.

       (a) Repeal.--Part D of the Nuclear Proliferation Prevention 
     Act of 1994 (part D of title VIII of the Foreign Relations 
     Authorization Act, Fiscal Years 1994 and 1995; Public Law 
     103-236; 108 Stat. 525) is hereby repealed.
       (b) Presidential Determinations.--Section 824(c) of the 
     Nuclear Proliferation Prevention Act of 1994 is amended by 
     striking ``, in writing after opportunity for a hearing on 
     the record,''.
       (c) Judicial Review.--Section 824 of the Nuclear 
     Proliferation Prevention Act of 1994 is amended--
       (1) by striking subsection (e); and
       (2) by redesignating subsections (f) through (k) as 
     subsections (e) through (j), respectively.
       (d) Conforming Amendment.--Section 102(b)(2)(G) of the Arms 
     Export Control Act (22 U.S.C. 2799aa-1(b)(2)(G)) is amended 
     by striking ``section 6 of the Export Administration Act of 
     1979'' and inserting ``section 105 or 106 of the Export 
     Administration Act of 1996''.

     SEC. 202. SEEKING MULTILATERAL SUPPORT FOR UNILATERAL 
                   SANCTIONS.

       The Secretary of State, in consultation with appropriate 
     departments and agencies, shall seek the support of other 
     countries for sanctions imposed under the Nuclear 
     Proliferation Prevention Act of 1994 or the amendments made 
     by that Act.

     SEC. 203. SANCTIONS UNDER THE NUCLEAR PROLIFERATION 
                   PREVENTION ACT OF 1994.

       Section 102(b)(2) of the Arms Export Control Act (22 U.S.C. 
     2799aa-1(b)(2)) is amended--
       (1) in subparagraph (D) by striking ``shall not apply--'' 
     and all that follows through the end of clause (ii) and 
     inserting ``shall not apply to humanitarian assistance.'';
       (1) in subparagraph (G) by striking ``, except that'' and 
     all that follows through the end of the subparagraph and 
     inserting a period; and
       (3) by adding at the end the following:
       ``(H)(i) The President shall prohibit the importation into 
     the United States of specific products produced in that 
     country by persons who have engaged in the activities 
     described in paragraph (1) that were the basis of the 
     President's determination under such paragraph.
       ``(ii) In the event that it is not possible to identify the 
     persons who have engaged in the activities described in 
     paragraph (1) that were the basis of the President's 
     determination under such paragraph, the President shall 
     prohibit the importation into the United States of products 
     produced in that country by those persons that the President 
     shall designate as most closely identified with those 
     activities.

[[Page H7584]]

       ``(iii) For purposes of this subparagraph, the term 
     `person' means--
       ``(I) a natural person;
       ``(II) a corporation, business association, partnership, 
     society, or trust, or any other nongovernmental entity, 
     organization, or group;
       ``(III) a governmental entity operating as a business 
     enterprise;
       ``(IV) a division or office of a governmental department; 
     or
       ``(V) a military unit or successor to such unit.
       ``(iv) The prohibition on imports imposed under this 
     subparagraph shall be in addition to any other prohibition on 
     imports in effect before the President's determination under 
     paragraph (1) is made.

     The prohibitions contained in subparagraphs (D), (G), and (H) 
     shall not apply to any transaction subject to the reporting 
     requirements of title V of the National Security Act of 
     1947.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Wisconsin [Mr. Roth] and the gentleman from Connecticut [Mr. Gejdenson] 
will each be recognized for 20 minutes.
  The Chair recognizes the gentleman from Wisconsin [Mr. Roth].
  Mr. ROTH. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, this bill before us is a result of an enormous amount of 
work by many, many people. As this session began, I spoke to President 
Clinton and with the gentleman from New York, Chairman Gilman, and the 
gentleman from South Carolina, Chairman Spence, and many others about 
working together for a good, balanced reform bill that we could all 
support.
  We spent 14 months in bipartisan discussion, talks involving our 
committee, and the administration, and the Committee on National 
Security.
  We knew that we needed to respond to new challenges: There is a new 
added urgency to our fight against the proliferation and international 
terrorism; COCOM has disappeared and cooperation among our allies is 
far more difficult; our Government is resorting to unilateral controls, 
all too frequently, often at the expense of U.S. workers; and 
technological progress in many areas has accelerated, putting many 
products beyond the effective control of governments.
  Mr. Speaker, we have successfully met these challenges in this bill, 
H.R. 361. The bill strikes a careful balance, replacing an expired 
cold-war law with a new statute that focuses on today's challenges.
  Let me list some of the bill's key provisions.
  First, the bill creates a new emphasis on strengthening multilateral 
export controls and on reducing U.S. reliance on unilateral controls. 
While unilateral controls are permitted, the President must annually 
justify them.
  The President must also annually estimate and justify their cost to 
the U.S. economy, and he must identify what is being done to make the 
controls multilateral.
  Second, the bill combats the proliferation of weapons of mass 
destruction and the missiles to deliver them. This includes tough 
prohibitions on the exports to countries not supporting multilateral 
efforts on nonproliferation. It also includes strengthened sanctions on 
persons who aid international proliferations.
  Third, the bill cracks down on dual-use exports and reexports to 
terrorist countries. Sensitive exports are simply prohibited. Plus, the 
Secretary of State is given new duties to ensure greater multilateral 
support for these tough controls.
  Fourth, the bill removes unneeded bureaucracy and cold-war 
impediments to export competitiveness. For instance, the bill 
streamlines the procedures and reduces, in half, licensing time lines. 
It provides new procedures for ensuring that U.S. exporters are treated 
fairly and that U.S. controls are clear and understandable.
  It establishes new rights for exporters to seek administrative and 
judicial review. The bill codifies new principles for deciding issues 
of jurisdiction between the State Department munitions list and the 
Commerce Department dual-use list.
  Mr. Speaker, these are just the highlights. I should also note that 
compromises have been made. The bill does not do everything that I or 
the gentleman from Connecticut [Mr. Gejdenson], or anyone on 
our committee would prefer. For example, I wish we would have been able 
to do something more on encryption and the like, but it can and should 
become law, this bill.

  Mr. Speaker, I want to pay special tribute to the gentleman from New 
York [Mr. Gilman], the full committee chairman, and the gentleman from 
Indiana [Mr. Hamilton] and the gentleman from Connecticut [Mr. 
Gejdenson], our minority side, for their work, and especially the 
staffs who worked with us for 14 months in negotiation on this piece of 
legislation. Without their stalwart efforts over many years of reform, 
we would not be here today.
  I also want to acknowledge the work of the National Security Advisor 
Tony Lake and his team at the NSC. They have been tireless in their 
support.
  Mr. Speaker, I would like to acknowledge the contributions of other 
committees with jurisdiction. As I have mentioned, the gentleman from 
South Carolina [Mr. Spence] and his committee staff have been an 
invaluable part of these discussions in coming to a good resolution on 
this bill.
  I would like to thank the gentleman from Texas [Mr. Archer], chairman 
of the Committee on Ways and Means, who reported the import sanctions 
provision retained in both section 1711 and section 203; the gentleman 
from New York [Mr. Solomon], the Committee on Rules, and his staff, who 
have contributed important technical improvement, especially on section 
107; and the staff of the Permanent Select Committee on Intelligence. 
They all have provided key assistance on provisions affecting the 
intelligence community.
  We have been helped greatly by such industry leaders as Mike 
Armstrong of Hughes Electronics and Mike Jordan of Westinghouse 
Electric. Their testimony and their advice have been invaluable. There 
have been so many CEO's in America who have contacted us on this 
legislation.

                              {time}  1430

  I also want to thank all the associations who have worked closely 
with us and their support in making today possible: the Association of 
Manufacturing Technology [AMT] and its 356 machine tool companies. I 
want to thank the aerospace industry, and I want to thank the Chemical 
Manufacturers Association, the Agricultural Export Alliance and the 
American Farm Bureau.
  Mr. Speaker, in conclusion, I recall introducing this bill, H.R. 361, 
on the first day of the Congress. My goal was simple, to reform our 
outdated export control system and to help our high-technology industry 
to create new jobs, good paying jobs, for American workers. This bill 
does that. It replaces a 17-year-old dinosaur with a law that is 
updated and forward looking.
  With H.R. 361's passage, we will help the United States enter the 
21st century as the most successful and the most responsible exporting 
state in the world, and I urge all my colleagues to adopt and to vote 
for this legislation.
  Mr. GEJDENSON. Mr. Speaker, I yield myself such time as I may 
consume.
  First, I would like to express my profound regret that the gentleman 
from Wisconsin will not be seeking a return to this Chamber. It has 
befuddled some, but the gentleman and I have had a great working 
relationship for a number of years, both when I was chairman and now 
under his chairmanship.
  I have always found him to be honorable and hard-working and 
straightforward. Sometimes he would get it wrong, but I am sure he felt 
the same way about me. So it has been a great pleasure to work with 
him, and I look forward to many years of friendship. I think he is a 
terrific Member, and I think he has made a valiant effort, and I know, 
having brought this bill out on a number of occasions. It is a 
difficult challenge to get a real change through the Congress.
  We can remember in 1989, the Bush administration found itself in a 
horrendous battle between Secretary of Defense Cheney and Secretary of 
Commerce Mosbacher. Secretary Mosbacher decontrolled 286 computers. 
Secretary Cheney seemed to be ready to assure us that this would give 
the Soviet Union the ability to rejuvenate itself and pass us 
militarily. There was this great debate in Washington whether Mosbacher 
had gone too far. Of course, I do not know what one could do with a 286 
computer today except for using it as a paperweight, but that is part 
of the problem with this bill.

[[Page H7585]]

  This bill is going to pass, Mr. Speaker, and I will not oppose it. 
While I am not going to oppose it, however, I cannot endorse it. I 
think what we do here is we do very little really to grab hold of the 
kinds of initiatives we need to deal with the terrorism and the spread 
of the kind of technologies, choke point technologies, that we might be 
able to control if we were more serious. At the same time, we hobble 
the American export market which has a direct impact on our workers and 
the vitality of our economy because these modern technologies are our 
future. They are where we are most competitive.
  We give ourselves, as this legislation does, as much as half a year 
to get an export license, while in Germany, France, Japan and the rest 
of the countries around the glove, who have the exact same technology, 
they will just walk through an agency and in many, many instances not 
need any license at all.
  The problem with this new agreement that replaces COCOM is that, 
frankly, it all ends up being unilateral controls. We end up in a 
situation where it will be controlled in the United States, but the 
Germans and the Japanese will make no effort to control it. The reason 
here is, I think, we have to focus on what is doable. We have to focus 
on getting cooperative agreements on critical technologies, on choke 
point technologies. But we also have to have the understanding that, 
while we ought not be racing to provide sensitive technologies to 
dangerous countries, frankly, the gentleman from Wisconsin and I have 
worked together, and the gentleman from New York [Mr. Gilman] and I 
have worked on the terrorism legislation to deny all technologies to 
the Libyas and Irans of this world who are leaders in the kind of 
terrorism that exists today. But the reality is we do not make the kind 
of definitions that are necessary.
  We do not deal with foreign availability. If it can be bought in 
Radio Shack in Beijing, it is too late to try to control it as an 
export product from the United States. We found that through the years 
we would fight for export license for 386 chips while they could be 
bought in stores in China.
  The failure to deal with the difference between a dual-use item and a 
munition will leave us where we are and where we have been in the past, 
where at one point an American company could not sell bank smart cards 
to a British bank. Not that they were not available, not that it was 
not clearly a nonmilitary use, but because there was encryption 
involved that ended getting dragged into the same category as bullets 
and bombs.

  This bill does not give American exporters the kind of platform to 
challenge bureaucratic insanity. If you are down there buried in the 
bowels of the government, most people do great work; but the instinct 
is why take a chance, and not taking a chance may cripple America's 
economy because these are the jobs of the future. It is not simply 
profits we are talking about, we are talking about the vitality of 
American industry, the vitality of our work force, and the vitality of 
our economy.
  I commend the chairman for doing what he has done, though, because 
this is a very tough Congress. With the extreme nature of some of the 
politics of this Congress, the gentleman probably would have never 
gotten it through some of the other committees. My admiration for the 
gentleman from Wisconsin, Chairman Roth, continues. I am just 
frustrated, frankly, that we have not been able to do more.
  That is basically not a tricky decision. It is a rational process. If 
we can buy it in every other country in the globe, American control 
does not achieve anything. If we have something that is dual use, it 
ought not be dealt with as if it was a missile system. So we have made 
some progress here; we have not made enough.
  These are the critical industries for the future. We ought to be 
nurturing them and doubling our efforts to fight terrorism, not leaving 
them hobbled in what may be 6 months of bureaucracy while purchasers of 
these products are running into Germany and Japan and walking out 
without any waiting period.
  Mr. Speaker, I reserve the balance of my time.
  Mr. ROTH. Mr. Speaker, I yield myself such time as I may consume to 
say that, first of all, I want to thank the gentleman from Connecticut 
[Mr. Gejdenson] for his strong support of this legislation and for 
backing the legislation. I do not know of anyone in this body who has a 
greater understanding of the legislation than Mr. Gejdenson does, so I 
appreciate his support very much.


                             General Leave

  Mr. ROTH. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days within which to revise and extend their remarks 
on H.R. 361.
  The SPEAKER pro tempore. (Mr. Gutknecht). Is there objection to the 
request of the gentleman from Wisconsin?
  There was no objection.
  Mr. ROTH. Mr. Speaker, I yield 5 minutes to the gentleman from New 
York [Mr. Gilman], chairman of our full committee. In doing that, I 
again want to thank him for his strong support and his help and the 
staff's help on this legislation.
  (Mr. GILMAN asked and was given permission to revise and extend his 
remarks.)
  Mr. GILMAN. Mr. Speaker, I thank the gentleman for yielding me this 
time.
  I rise in strong support of the Export Administration Act of 1996, 
the first significant reform of our export control laws in the past two 
decades. It will bring our export control statutes in conformity to the 
post-cold war era and will strengthen our export controls in such key 
markets as China.
  I want to congratulate the distinguished gentleman from Wisconsin, 
the chairman of the Subcommittee on International Economic Policy and 
Trade, for his outstanding work on this legislation as well as his 
support of the gentleman from Connecticut [Mr. Gejdenson] the 
committee's distinguished ranking member.
  The gentleman from Wisconsin [Mr. Roth] has been unwavering in his 
determination to move this bill, and the successful negotiations with 
the Committee on National Security and with the administration have 
enabled our committee to bring this bill to the House floor today under 
a suspension of the rules.
  During our committee's markup on this vitally important legislation, 
the Committee on International Relations considered an export control 
text that greatly tightened statutory restrictions on exports to 
terrorist nations, specifically prohibiting all proliferation-related 
and dual-use exports and reexports to such countries providing a 
Presidential waiver if an export is essential to the national interest.
  Enactment of this legislation, Mr. Speaker, will require the 
Secretary of State to seek support of these antiterrorism controls from 
other nations and from the various export control regimes. It will help 
to make certain that the same stringent export control regime will be 
applied to all terrorist states, including Syria.
  During its markup, the committee adopted an amendment that I proposed 
providing greater scrutiny and monitoring to the billions of dollars of 
dual-use equipment and technology licensed annually for export from our 
Nation to the People's Republic of China.
  As we learned during the recent debate on the House floor in 
providing most-favored-nation to China, we are going to have to pay 
greater attention to China's rapid military buildup and modernization 
of its Armed Forces.
  Enactment of this bill will help to accomplish that objective by 
ensuring that our dual-use exports to the People's Republic of China 
are not going to be put to use for those purposes by companies 
controlled by the Chinese People's Liberation Army.

  In sum, this bill not only undertakes the long overdue reform of the 
Export Administration Act but also reestablishes our statutes on dual-
use exports and reasserts the prerogatives of this committee over this 
important body of law. While it provides greater transparency on U.S. 
export control laws and greatly reduces the number of days needed for 
issuing export licenses, it also adds controls on countries not 
supporting multilateral efforts to counter the proliferation of weapons 
of mass destruction.
  In short, this is a well balanced bill addressing regional and global 
proliferation threats while, at the same

[[Page H7586]]

time, streamlining and modernizing antiquated export control procedures 
of the cold war era.
  To those Members concerned about the impact of its provisions on 
American industry, I would point out that it subjects export controls 
to new oversight procedures and gives our exporters an improved appeals 
process for controls they believe are unfair.
  Accordingly, I urge my colleagues to support this historic 
legislation, the Roth bill on export controls, and I again commend him 
and the gentleman from Connecticut [Mr. Gejdenson] for their work on 
this measure.
  Mr. ROTH. Mr. Speaker, I yield myself such time as I may consume to 
again thank the gentleman from New York, the chairman of our full 
committee, for his strong support of this legislation and for all the 
help he has given me in making today possible.
  Mr. Speaker, I yield 3 minutes to the gentleman from Nebraska [Mr. 
Bereuter] who has worked on this subcommittee with me for many, many 
years and I have always appreciated his support.
  (Mr. BEREUTER asked and was given permission to revise and extend his 
remarks.)
  Mr. BEREUTER. Mr. Speaker, this Member rises in strong support of 
H.R. 361, the Export Administration Act of 1996. Our current export 
licensing framework is grossly out of date--not having been 
significantly revised in 17 years. We desperately need to pass this 
legislation if Congress is to have any influence over the delicate 
balancing act between national security and commercial interests that 
the President currently performs under the broad powers of the 
International Emergency Economic Powers Act.
  First however, this Member would like to congratulate the 
distinguished gentleman from Wisconsin [Mr. Roth], chairman of the 
International Relations Subcommittee on International Economic Policy 
and Trade, for his exceptional work in crafting legislation that not 
only revises an out-of-date statutory framework but provides us with a 
rational system for export controls that can evolve well during the 
21st century. This Member regrets that we are losing Chairman Roth's 
excellent stewardship on issues of great importance to American 
commercial interests. It has been this Member's pleasure to serve with 
Chairman Roth on this subcommittee for the last 14 years. However, this 
Member is grateful that Chairman Roth leaves his post with a good, 
bipartisan House compromise that the Senate would be wise to consider 
and pass.
  On March 3, 1795, Congress gave the President authority to permit the 
exportation of arms, cannons and military stores in ``cases connected 
with the security of the commercial interest of the United States, and 
for public purposes only.'' That act was one of the first export 
administration acts and no doubt an ancestor to the legislation 
currently before us today.
  Despite his best efforts during his tenure in Congress to eliminate 
red tape and bureaucracy, Chairman Roth presents us with a bill 201 
years later that is 202 pages longer than its precursor. That amounts 
to a page of legislation for each birthday of this great country.
  Obviously, despite that facetious comparisons, Mr. Speaker, the world 
is a much more complicated place than it was in 1795, but the 
underlying principles for export regulations are the same. Then, we did 
not want our enemies to be able to acquire the cannons that could 
damage our ships of commerce. Now, for example, we seek to deny them 
the precision tools from constructing weapons of mass destruction.
  Mr. Speaker, this legislation is not perfect; no compromises are. But 
the current export control authority for our Nation is badly in need of 
reform. This legislation will importantly reestablish U.S. statutory 
authority and eliminate the necessity of the President using overly 
broad emergency administrative powers to implement our Nation's export 
control laws. While tightening restrictions on dual-use exports to 
rogue regimes and terrorist countries, it emphasizes strengthening 
multilateral export controls. Also it provides strong incentives for 
the President to negotiate with our allies before unilateral controls 
are imposed.
  Mr. Speaker, this Member would like to again congratulate Chairman 
Roth for his hard work on striking an appropriate balance between U.S. 
national security and commercial interests. If the Senate wisely 
follows his lead and passes this legislation, part of the Roth legacy 
will be a rational export control system that is responsive to U.S. 
industry while protecting the national security.

                              {time}  1445

  Mr. ROTH. Mr. Speaker, I thank the gentleman from Nebraska [Mr. 
Bereuter] for his excellent comments. I want to say I have enjoyed 
working with him for the last 14 years on this subcommittee. I 
appreciate all his creative thinking in the committee also.
  Mr. Speaker, I yield 3 minutes to the gentleman from Illinois [Mr. 
Manzullo], vice chairman of our subcommittee.
  Mr. MANZULLO. Mr. Speaker, many people are legitimately concerned 
about the large U.S. trade deficit, which reached $111 billion in 1995. 
But few people know that the U.S. Government maintains barriers to 
American exports to willing customers overseas. In 1993, the respected 
Institute for International Economics measured this barrier, totaling 
up to $40 billion in lost U.S. sales abroad. Even if you use the most 
conservative estimate, the current export control system stymies the 
creation of 600,000 high-paying, highly skilled jobs.
  We have entered a new post-cold-war era where our national security 
threats have fundamentally changed from the large Soviet menace to a 
select group of smaller national dedicated to developing weapons of 
mass destruction and to the promotion of state-sponsored terrorism. We 
need a revised export control system that recognizes these new threats 
to our national interests while balancing our economic interests. This 
bill meets that challenge.
  The new Export Administration Act brings more rationality into the 
system to provide more predictability and transparency for U.S. 
exporters. It emphasizes coordination with other nations, as opposed to 
our usual unilateral sanction, ``shoot ourselves in the foot 
strategy.''
  The new Export Administration Act reduces by almost in half the 
number of days allowed for issuing export licenses. As chairman of the 
Small Business Exports Subcommittee, I especially know how delays in 
the export licensing process can hurt a small exporter. H.R. 361 is 
needed so that bureaucrats do not unnecessarily delay an important 
sale.
  I also want to extend my appreciation to the chairman of the 
International Economic Policy and Trade Subcommittee, Mr. Toby Roth of 
Wisconsin. For the past few years, we were unable to pass a 
comprehensive Export Administration Act reform. This year, the chairman 
adopted a different tactic to include the National Security Committee 
in the drafting of this legislation.
  The results speak for themselves today: H.R. 361 is on the 
noncontroversial suspension calendar.
  I also want to thank the administration for moving many export 
control reforms internally through regulatory changes. Increasing the 
MTOP levels on computers to 2,000 to most every country in the world 
and 10,000 to our strongest allies was a welcome move because our 
competitors, even in Brazil and Taiwan, are making functional 
equivalents of these computer systems.
  Because of these administrative changes, we do not have to include 
these reforms in this legislation. I hope that same spirit of reform 
will continue because this legislation provides discretion to the 
administration to resolve some of the most contentious issues in export 
control reform such as a dual-use definition and foreign availability 
criteria.
  I urge my colleagues to adopt this landmark job-creating reform and 
that the other body act expeditiously on this bill.
  Mr. ROTH. Mr. Speaker, I yield 3 minutes to the gentlewoman from 
Kansas [Mrs. Meyers], chairman of the Committee on Small Business.
  (Mrs. MEYERS of Kansas asked and was given permission to revise and 
extend her remarks.)
  Mrs. MEYERS of Kansas. Mr. Speaker, I rise in strong support of H.R. 
361. I feel that this Congress and the American people owe a debt of 
gratitude to chairman Roth for the way he has

[[Page H7587]]

crafted this legislation. In previous Congresses this legislation 
foundered in bitter controversy between the national security community 
and the business community. Under the leadership of the gentleman from 
Wisconsin, the legitimate interest in preventing proliferation of 
technology that can be misused has been reconciled with the legitimate 
interest in allowing our companies a level playing field with their 
foreign competitors. And he has done it in a way that allows this bill 
to be considered under suspension of the rules.
  The rationale and need for export controls has changed because of the 
end of the cold war. Before, we were contending with an adversary with 
considerable indigenous industrial and scientific capabilities, but 
lagging behind in technical innovation. The Soviets could develop high 
technology weapons on their own through their own capabilities plus 
espionage, but they were one or two generations behind us. Our goal was 
to keep them from getting state-of-the-art technology, but we knew it 
was useless to try and keep them from getting older technology.
  Before, the key objective of our export controls was to keep the 
technology away from the Soviets that could allow them to develop more 
accurate missiles or quieter submarines. But we couldn't prevent them 
from building subs or rockets, they already knew how to do that. We had 
to keep our qualitative advantage that made up for our quantitative 
disadvantage, that would have allowed us to prevail in a stand-up fight 
and made our deterrent credible. Now, to counter the proliferation 
threat from rogue and terrorist nations, our focus has to change. We 
want to prevent the irons and Libyas of the world from getting any kind 
of missile or weapon of mass destruction. The dangerous countries now 
do not have the indigenous capability to produce these weapons; they 
have to purchase the necessary technology and know-how. It doesn't 
matter if what they build is obsolete in a purely military sense; these 
obsolete weapons are still dangerous in terms of their utility for 
terrorist purposes. We have to focus our export control resources to 
target those outlaw nations specifically, and keep them from getting 
the technology necessary to build any weapons of mass destruction.
  There are two ways to do this. We can put tougher unilateral controls 
on ever type of industrial technology, because even the lower tech 
items can still be used to build crude weapons suitable for terrorist 
purposes. Or, we can concentrate on uniting the entire industrialized 
world to prevent the real threshold technology from getting to the 
nations that are truly dangerous. I believe the second approach is the 
more useful and effective one, and it is the approach taken in this 
legislation.
  Finally, the bill's provision allowing import sanctions to be imposed 
upon countries that engage in nuclear proliferation puts a real 
deterrent to this activity in the hands of the President. It makes it 
much more likely that we will be able to threaten a sanction that will 
actually hurt the offending country more than it does us.
  However, I am afraid that this current language may be too narrow. It 
restricts the import sanction to the entities responsible for or most 
closely identified with the illegal proliferation. There will be 
situations where it would be most effective to target imports that may 
not be from the entity that engaged in the proliferation but would 
cause the foreign country much much more pain if cut off.
  We must remember that any trade sanction we impose will cause some 
hardship to Americans, since after all no trade occurs without mutual 
benefit. We should allow the administration enough flexibility to pick 
an appropriate trade sanction that causes more pain to the offending 
foreign country than it does to American citizens. I hope we can 
further modify this provision as this bill moves through the 
legislative process.
  All in all, Mr. Speaker, this bill is vitally needed. I urge its 
swift passage.
  Mr. ROTH. Mr. Speaker, I yield the balance of my time to the 
gentleman from California [Mr. Campbell] who is the newest member of 
our subcommittee and by far one of the brightest and most astute.
  Mr. GEJDENSON. Mr. Speaker, I yield 2 minutes to the gentleman from 
California [Mr. Campbell].
  The SPEAKER pro tempore (Mr. Gutknecht). The gentleman from 
California [Mr. Campbell] is recognized for 3 minutes.
  (Mr. CAMPBELL asked and was given permission to revise and extend his 
remarks.)
  Mr. CAMPBELL. Mr. Speaker, I thank the gentleman for those overly 
generous comments, and I thank the gentleman from Connecticut for his 
generous gift of time. I rise in support of the bill.
  Mr. Speaker, the bill is essential. I only wish it did more. In this 
regard, I agree with my colleague that we are making a good start. It 
is my hope that we will do more as the bill moves into conference. But, 
Lord knows, it has to be viewed as a first step which would not have 
taken place but for the exceptional efforts of our colleague and 
chairman from Wisconsin.
  There are two points I would like to stress. First of all is 
regarding the private right of action which is created in this bill. I 
am always very concerned whenever there is a new private right of civil 
action created where people can go to a court of law and bring a 
lawsuit. That is the case here. Where an enterprise is alleged to be 
violating the rules about the diversion of weapons and technology, 
private right of action is created.
  I think it would have been wiser to require that before that civil 
lawsuit be commenced that there be a criminal conviction. The reason is 
that if otherwise it is possible that diplomatic efforts to work out a 
disagreement can be impeded by the civil lawsuit that is pending. At 
the very least, however, the bill did include a provision on an English 
rule that the attorney's fees be paid for by the losing side in such 
civil litigation, and I think it is essential that that remain.
  My second and last point is that the bill should have done more on 
encryption and so I will take the remaining minute to say that I am 
hopeful that even possibly within this Congress there may be a way to 
address encryption, possibly our colleague from Washington State's own 
bill on encryption, Mr. White, possibly an amendment as this bill goes 
into conference. The administration can do a whole lot on its own 
regarding the export of encryption software and hardware. Simply by 
reclassifying this a dual-use rather than munition, it would bring its 
review process out of the State Department and over to commerce where I 
think it would be much more realistic.
  The importance of the encryption export is not simply in its own 
right as a market for American entrepreneurship and or research and 
development, but also this: As more and more computers are being used 
in commerce and as we go to virtual banking and international finance, 
the ability to encrypt is going to be an essential part of any computer 
system you buy. If American computers cannot have embedded in them 
reliable encryption, then nobody is going to buy the computer system. 
And then we move from a loss of maybe a billion or two to tens of 
billions of dollars. Indeed, the computer systems policy project 
estimates a $60 billion loss to our country by the year 2000.
  Those are two points that should be emphasized as the bill goes to 
conference. I conclude with a word of personal appreciation to the 
chairman, how much I have enjoyed working with him for 5 years in 
several Congresses.
  Mr. Speaker, I want to take this opportunity to speak in support of 
H.R. 361, the Omnibus Export Administration Act of 1996. In committee, 
I offered an amendment to apply the English rule on attorneys' fees to 
the private right of action this bill contains. I want to emphasize 
that my willingness to vote for this bill is conditioned upon this 
provision staying in the bill; if it is removed, but the private right 
of action stays, I would have to reconsider my support for this 
legislation.
  I have also expressed my concerns to Chairman Roth about the 
competitive disadvantage provision within the foreign availability 
section. I believe that there is a real danger that U.S. companies will 
suffer significant disadvantages within CoCom's successor, the new 
Wassenaar Arrangement, if the U.S. Government rigorously enforces the 
new internationally agreed upon export control lists while its allies 
and other nations within Wassenaar rubber stamp their licenses or give 
those licenses only cursory reviews.
  I want to take time today, however, to discuss an omission from H.R. 
361. That issue is

[[Page H7588]]

encryption. It is not a part of H.R. 361, in part, because it is too 
controversial and might have killed the last chance that the bill has 
for passage during the 104th Congress. But within the category of 
export controls, encryption is the most important issue facing us 
today, and I believe that Congress would be abdicating its 
responsibility by not taking it up during the current session. By 
speaking today, I hope to build a record for early consideration of 
encryption legislation in the next Congress, or even for consideration 
in the remaining days of this Congress.
  As data become more available, data become more vulnerable. The more 
information is passed along both public and private networks, the 
greater is the demand for information security. Financial losses from 
system penetrations have increased, and users feel more vulnerable to 
interception or corruption of their data. Both companies and 
individuals want to avoid the losses and the system shutdowns that 
occur when outsiders are able to browse within their data. They view 
information as property, and they believe that they have a right to put 
as strong a lock on that property as they see fit. I agree with them. 
Information must be protected.
  Encryption is the ability to scramble communications sent out along 
computer networks. There is no restriction on encryption when it is 
applied domestically, but under current law, it cannot be exported 
except under very limited conditions.
  The current export controls prevent U.S. companies from meeting the 
market demand for encryption. Our overseas competitors, however, will 
meet that demand. Only last month, there were news reports of a new 
Nippon Telephone and Telegraph encryption chip, which provides a 
strength of encryption unavailable from any U.S. vendor.
  This creates a real problem for two of the most successful industries 
in the United States today, the computer and software industries. 
Because they are of such high quality, U.S. computers and software 
dominate the world market and set the international standard. This 
results in a significant competitive advantage for both industries and 
it has been a major benefit to national security, as militarily useful 
products and technologies have spun off to benefit our increasingly 
automated weapons systems. That advantage, however, is under serious 
challenge. U.S. computers and software cannot continue to be world 
leaders if an important aspect of their competitiveness is denied to 
them.
  It is ill advised to continue the current U.S. Government encryption 
policy. A recent Department of Commerce study documented that there are 
hundreds of foreign firms that produce encryption products that serve 
the market denied to U.S. companies. As a consequence, the current 
policy results in handing the encryption market to our trade 
competitors. Worse still, however, is the fact that in today's world, 
customers tend to buy complete packages for their computer networks and 
they want information security to be a part of that package. In 1996, 
the market loss for encryption products alone may be estimated in the 
billions; but the market for computer and software systems amounts to 
hundreds of billions. It is that total systems market, as well, which 
is imperiled by a U.S. Government export control policy that refuses to 
face the reality of the international marketplace by refusing to allow 
encryption to be included as a part of the total network systems 
offered by U.S. companies. The Computer Systems Policy Project 
estimates that, unless the United States relaxes export controls on 
encryption, the U.S. technology industry will lose $60 billion in 
revenue and 200,000 jobs by the year 2000.
  A company from Silicon Valley, Hewlett-Packard, illustrates the 
difficulties encountered by the entire industry. Hewlett-Packard has 
developed a number of products that require encryption for their 
operation. For example, emerging smart card technology promises to 
bring individuals unprecedented access and control over digital 
information and assets. Last year 500 million smart cards were issued 
and more than 4 billion are expected to be in use by the 2000. With all 
that critical information stored on a smart card, the network system 
supporting use of the card would require significant encryption 
capability. Although the use of this new personal information card is 
entirely benign and poses no national security risk, currently, the 
restrictions on the export of cryptography make it extremely difficult 
to market this product abroad. Such a policy restriction has minimal 
benefits and high long-term costs.
  The current encryption export control system is both anachronistic 
and inefficient. It denies U.S. companies the right to export products 
containing encryption that is widely available from foreign vendors, 
and those few licenses that are granted take so long in the approval 
process that customers who might buy American technology are tempted to 
turn to foreign suppliers to satisfy their needs. It makes no sense to 
control commercial encryption as though it is a munitions item. It has 
been decades since the military was the primary user of encryption. At 
the very minimum, encryption control parameters ought to be raised to 
the level commercially available from foreign vendors, and encryption 
ought to be controlled as a dual-use commercial item rather than a 
munitions item. This change alone would replace the current cumbersome 
State Department bureaucracy with a Commerce licensing system that is 
likely to be more efficient and more responsive to commercial 
exigencies while not excluding the role of defense agencies within the 
new process. The pending Export Administration Act accomplishes a 
similar balance for the items it controls.
  The administration has indicated that it is at least considering this 
authority transfer. But the last encryption policy change it allowed 
took 2 years to execute. Industries as fast-moving as computers and 
software cannot afford such glacial change. The administration has to 
respond quickly to changed conditions, or the Congress should make the 
change for them through the legislative process.
  There is no market for the weak encryption that U.S. companies are 
allowed to export under current regulations when strong encryption is 
widely available from foreign vendors. Nor can U.S. companies follow 
the recent proposal of the U.S. Government and force their customers to 
escrow the key to their encryption systems with a third party, when 
foreign vendors offer the same strength of encryption without any 
cumbersome requirements. If such a requirement could be imposed 
throughout the world, U.S. companies would suffer no disadvantage. But 
that is unlikely to occur.
  Congressman White has drafted, and I have cosponsored, legislation 
that would begin to address the problems engendered by our current 
encryption policy. That legislation would bring our licensing 
parameters for encryption up to the levels widely available abroad and 
also transfer encryption export licensing authority from the State 
Department to Commerce. It is still my hope that this legislation can 
be taken up during this session of Congress. Encryption could also be 
addressed by the Clinton administration by simply undertaking 
regulatory reforms. Those reforms should have been undertaken years 
ago, so that U.S. companies would not be facing the competitive 
disadvantages that they are today.
  Mr. GEJDENSON. Mr. Speaker, I would like to again commend my 
colleagues, the gentleman from Wisconsin [Mr. Roth] for his work on 
this issue and so many others, having been such a valuable Member of 
the Congress. We are truly going to miss him as a legislator and as a 
friend. We will not miss him as a friend. We will see him long after 
his time in Congress. I commend him for his work. I agree with the 
gentleman from California on the encryption issue and others that need 
to be dealt with rapidly.
  Mr. ROTH. Mr. Speaker, I thank the gentleman for his kind remarks and 
I have also enjoyed working with the gentleman from Connecticut [Sam 
Gejdenson]. The feeling is mutual.
  Mr. HAMILTON. Mr. Speaker, I urge the House to suspend the rules and 
pass H.R. 361, the Omnibus Export Administration Act of 1996, as 
amended.


                             communications

  I want to commend Congressman Roth, the principal drafter of this 
bill, for the excellent work he has done to bring it before the House 
today.
  This is an extraordinarily complicated measure. Since the end of the 
cold war, three previous export administration bills have failed to 
pass the House.
  Congressman Roth deserves a lot of credit for the fact that H.R. 361 
stands a better chance of being approved by the House than its 
predecessors.
  As Mr. Roth has acknowledged, however, this bill would not be on the 
floor today were it not for the creativity and hard work of Congressman 
Gejdenson, ranking Democrat on our Economic Policy Subcommittee. Much 
of H.R. 361 is based on the bill Mr. Gejdenson drafted, with Mr. Roth's 
help, in 1994. No Member of Congress has done more to promote reform of 
the U.S. system for controlling dual-use exports than has Mr. 
Gejdenson.
  Let me also commend the administration and the bipartisan leaderships 
of the National Security, Ways and Means, Rules and Judiciary 
Committees for their constructive work on this bill. The progress of 
this bill so far has been a model of bipartisanship.


                            a balanced bill

  An effective export control system must carefully balance U.S. 
national security and economic interests.
  This bill strikes a decent balance.
  On the national security side, it toughens nonproliferation 
sanctions, tightens restrictions on exports to terrorist nations, and 
strengthens multilateral nonproliferation regimes.

[[Page H7589]]

  On the economic side, it shortens export licensing deadlines, makes 
the licensing system more transparent, and gives exporters better 
access to administrative and judicial review of licensing decisions.
  I am also pleased that the bill includes language protecting U.S. 
farmers from economic embargoes. These protections will reassure both 
farmers and our trading partners about our commitment to expanding 
export markets.
  Nobody considers this a perfect bill. In his effort to gain the 
support of the National Security Committee, Mr. Roth agreed to make 
changes in H.R. 361 that some American exporters opposed. I share the 
concerns of these exporters, and I am hopeful that several of the 
reforms they favor can be reinstated at a later stage in the 
legislative process, to better serve all U.S. national interests.


                           why we need a bill

  Mr. Speaker, this bill needs to move forward today if we are to have 
a chance of enacting it this year.
  Our dual-use export control system has operated under Executive order 
since the old Export Administration Act expired in August 1994.
  We need an export administration statute for several reasons.
  First, a regulatory system does not provide as sound a basis for 
business or policy decisions as would a statute. U.S. exporters and the 
U.S. Government will both benefit from the increased predictability and 
transparency of a statute.
  Second, without a statute we cannot adequately enforce our 
antiboycott policies, which help protect Israel from economic pressure.
  Third, our current export control system reflects the East-West 
security focus of the expired Export Administration Act. H.R. 361 will 
give us a system that more closely corresponds to the economic and 
security circumstances of the post-cold-war era.


                               conclusion

  Mr. Speaker, export controls impact a wide range of U.S. national 
interests. That makes if difficult to draft an Export Administration 
Act that fully satisfies all interested parties.
  But the bill before us today strikes a good compromise, and after 2 
years under Executive order, it is time to put our export control 
system on a statutory foundation.
  I urge Members to vote to suspend the rules and pass H.R. 361.
  Mr. SPENCE. Mr. Speaker, I rise in support of H.R. 361, the Omnibus 
Export Administration Act of 1996.
  This act would supersede the original Export Administration Act, 
which expired in 1994, and is the result of many months of negotiation 
and hard work between the International Relations and National Security 
Committees. I believe it strikes a responsible balance between the 
desire to promote U.S. exports and the need to prevent sensitive 
technologies for falling into the wrong hands. I commend my colleagues, 
Mr. Gilman, the chairman of the International Relations Committee, and 
Mr. Roth, the chairman of the International Economic Policy and Trade 
Subcommittee, for their commitment to work cooperatively on this issue.
  Since the fall of 1994, the Clinton administration has been operating 
under emergency authorities contained in the International Emergency 
Economic Powers Act. This piecemeal approach to export control is 
neither satisfactory nor prudent and has resulted in poor decisions 
with detrimental impact on U.S. national security.
  The Export Administration Act accomplishes several important 
objectives. For example:
  It removes the ad hoc nature of current export control policy 
decisionmaking by codifying in statute procedures for determining 
whether exports of sensitive dual-use technologies are consistent with 
U.S. national security interests. While directing continued efforts to 
work with our allies to harmonize their export control policies with 
our own, it allows us to control unilaterally the export of critical 
items for important national security or foreign policy reasons.
  It grants the Secretary of Defense statutory authority to participate 
in the formulation and review of multilateral, unilateral, missile 
technology, chemical, and biological export control lists. This is a 
significant and important increase in the authority of the Secretary of 
Defense.
  It allows the Department of Defense to specify limitations on how, to 
what countries, and to what end-uses controlled items may be exported. 
This grants DOD new statutory authority to help ensure that sensitive 
technologies do not end up in the wrong hands.
  It ensures that the Department of Defense will have the opportunity 
to review all export license applications submitted to the Department 
of Commerce. This will prevent situations, as has happened in the past, 
where the Commerce Department approves the export of a sensitive dual-
use technology with military application without the knowledge of the 
Department of Defense.
  It establishes a procedural mechanism whereby the Secretary of 
Defense can escalate disputes regarding the approval of license 
applications to the President for resolution.
  It prohibits any item whose export is strictly controlled as a 
munition from being placed simultaneously on the less-restrictive list 
of dual-use commodities for export.
  It properly focuses our export control efforts on stemming the 
proliferation of dangerous technologies to potentially hostile regimes 
by prohibiting any export that would materially contribute to a weapons 
of mass destruction program in a country that is not a member or 
adherent to a multilateral export control regimes. And it prohibits the 
export of any controlled items to terrorist countries.
  Mr. Speaker, the Export Administration Act of 1996 is a balanced 
compromise that goes a long way toward updating this country's export 
control process in a way that conforms to the new national security 
challenges we face today.
  I urge my colleagues to join me in support of H.R. 361.
  Mr. GEJDENSON. Mr. Speaker, I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Wisconsin [Mr. Roth] that the House suspend the rules 
and pass the bill, H.R. 361, as amended.
  The question was taken; and (two-thirds having voted in favor 
thereof) the rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

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