[House Report 104-605]
[From the U.S. Government Publishing Office]



104th Congress                                            Rept. 104-605
                        HOUSE OF REPRESENTATIVES

 2d Session                                                      Part 1
_______________________________________________________________________


 
               OMNIBUS EXPORT ADMINISTRATION ACT OF 1996
                                _______


                  June 5, 1996.--Ordered to be printed

                                _______


 Mr. Gilman, from the Committee on International Relations, submitted 
                             the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 361]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on International Relations, to whom was 
referred the bill (H.R. 361) to provide authority to control 
exports, and for other purposes, having considered the same, 
report favorably thereon with an amendment and recommend that 
the bill as amended do pass.
  The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

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 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,
                  (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.
                  (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 or 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 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.
          (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 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.
          (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, adopts 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 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 
        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 or of any other joint resolution introduced with 
        respect to the same matter.
          (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 or 
        discharged pursuant to the provisions of this paragraph, it 
        shall be in order for the Committee on Rules of the House of 
        Representatives to present for consideration a resolution of 
        the House of Representatives providing procedures for the 
        immediate consideration of a joint resolution under this 
        paragraph which may be similar, if applicable, to the procedure 
        set forth in section 601(b)(4) of the International Security 
        Assistance and Arms Export Control Act of 1976.
          (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.
  (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.
                  (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 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 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 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 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 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
                          (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--
                          (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 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.
  (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,
                  (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
                          (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
          (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.
          (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--
                  (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.
  (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 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.
          ``(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.''.

                                Purpose

    H.R. 361, the ``Export Administration Act of 1996'', as 
amended, would replace the expired Export Administration Act of 
1979, which traditionally has provided the statutory basis of 
the U.S. system for controlling exports of dual-use commodities 
and technologies. The purposes of the bill are to: (1) 
strengthen the effectiveness of U.S. dual-use export controls 
regarding threats posed by international terrorism and by the 
proliferation of weapons of mass destruction; and (2) 
strengthen U.S. export competitiveness by removing ineffective 
and unnecessary governmental impediments.

                               Background

    The Export Administration Act of 1979 provided the 
framework for the Commerce Department's controls on dual-use 
exports. Dual-use commodities and technologies are civilian 
items that possess potential military applications; they are 
not munitions. Exports of munitions are controlled by the State 
Department under the Arms Export Control Act (AECA).
    For most of the last seventeen years, the Export 
Administration Act of 1979 has provided the executive branch 
authority to control exports of dual-use commodities and 
technologies for three broad purposes (described below). The 
law has not been significantly rewritten in that period, and it 
has not been updated since 1988, though attempts were made in 
the 101st, 102nd, and 103rd Congresses.
    The Export Administration Act of 1979 expired as of August 
20, 1994. Since that time, the statutory authority to control 
dual-use exports has derived from a state of emergency declared 
by the President. The President declared this emergency 
pursuant to his authorities under the International Emergency 
Economic Powers Act, so that the pertinent regulations and most 
enforcement powers could remain in effect. The emergency 
powers, however, do not allow for full enforcement powers.
    Traditionally, there have been three types of dual-use 
export controls. First, U.S. exports are controlled for 
national security purposes. National security controls, which 
have been applied since the early years of the Cold War, 
assisted NATO efforts to maintain a qualitative military edge 
sufficient to overcome the Warsaw Pact's quantitative edge. 
Until two years ago, these controls were implemented in 
coordination with other members of the Coordinating Committee 
for Multilateral Export Controls (COCOM).
    Second, exports are controlled for several different 
``foreign policy'' purposes. Objectives for which foreign 
policy controls have been implemented include protecting human 
rights, curbing proliferation of weapons of mass destruction, 
and restricting exports to rogue or terrorist countries. Many 
U.S. foreign policy controls have been, and continue to be, 
imposed unilaterally.
    Third, export controls are applied for short supply 
purposes. Short supply controls are designed to protect the 
U.S. economy from potentially damaging price rises or 
conditions of scarcity due to exports. Commodities subject to 
short supply export controls or prohibitions have included 
petroleum products and certain timber products.
    The executive branch controls exports for these purposes 
through the granting of licenses to exporters. Export license 
applications are processed by the Department of Commerce. Many 
license applications are referred for comment and 
recommendations to the Department of State, the Department of 
Defense, and other national security agencies of the U.S. 
Government.
    The Export Administration Act of 1979 also contained 
provisions designed to prevent U.S. citizens and firms from 
complying with or supporting boycotts against countries 
friendly to the United States.

                     Need for Export Control Reform

    The world has changed dramatically since the last revisions 
to the Export Administration Act were adopted in 1988. These 
changes have made it necessary to reform the U.S. dual-use 
export control system.
    First, the end of the Cold War has also brought with it the 
end of the tight international coordination and high-level 
political commitment that were embodied in COCOM. During the 
Cold War, the COCOM allies agreed on the enemy and U.S. 
leadership on export controls was acknowledged throughout the 
western alliance. There was consensus on the paramount security 
objective of ensuring that NATO's qualitative edge in the 
battlefield was sufficient to overcome the Warsaw Pact's 
quantitative edge. The procedures incorporated into COCOM were 
remarkably intrusive for a multilateral arrangement, especially 
one without a treaty base. COCOM not only operated with strict 
disciplines and a tight rule of consensus, it featured a unique 
power: any one member of COCOM could veto the licensing by any 
other member of a proposed export to any of the proscribed 
destinations (basically, the Warsaw Pact members and China). 
Through this veto power, the United States was not only able to 
ensure that dangerous exports were not made, we were also able 
to ensure a level playing field for our own exporters.
    In the post-Cold War era, it has become quickly apparent 
that no similar over-arching, and politically binding, mission 
or procedures drive our western partners to march in step with 
us on export controls. COCOM expired on March 31, 1994, and 
while there is still strong interest in coordination, and 
fortunately our national control policies have very similar 
objectives, there is an absolute rejection of the kind of 
intrusive disciplines that characterized COCOM. As a result, 
there is no more United States veto power, no more procedural 
assurance that dangerous exports are not being made by even our 
closest allies, and no more procedural assurance that our 
exporters are being provided a reasonably level playing field.
    Second, the capacity to build weapons of mass destruction 
(WMD)--including nuclear, chemical, and biological weapons, and 
the missiles to deliver them--is spreading. International 
terrorists and rogue regimes like Iraq and Iran have set up 
sophisticated procurement efforts to design, develop, produce, 
and deploy various WMD capabilities. Such efforts do not have 
to target leading-edge technologies. Often the procurement 
targets are for technologies that are decades old. (Terrorists 
in Japan caused tragedy in the subways of Tokyo with chemical 
weapons technology harkening back to WWI. Key elements of 
Saddam Hussein's nuclear capabilities were established from 
procuring 1960's technologies.) But more sophisticated 
technologies are also being targeted. The Jordanian 
interdiction of especially sophisticated gyroscopes destined 
for the Iraqi long-range missile program is a prime example.
    This spreading WMD capability points to the great need for 
improvements in multilateral non-proliferation efforts and in 
national export control systems. U.S. export control policies 
must focus more effectively on leading international efforts to 
prevent the proliferation of weapons of mass destruction that 
threaten U.S. national security or that of our allies. This can 
only be accomplished through more effective multilateral 
activities and coordination.
    Third, international economic competition has intensified. 
Exports account for a growing share of output and jobs in most 
advanced industrial countries, which raises the stakes in the 
competition for export markets. Many U.S. exporters have 
stressed the value, in this competitive environment, of a 
disciplined and streamlined U.S. export control system. 
Exporters argue that unilateral U.S. export controls, and 
sanctions, punish them without necessarily achieving their 
intended purpose. They also claim that a slow and cumbersome 
export license processing system can handicap American 
exporters competing for markets with exporters from countries 
whose licensing is more efficient.
    Fourth, the pace of technological change is increasing. 
More rapid technological change, particularly in the 
information technologies industry, has made it difficult for 
changes in export control policies to keep pace. Elementary 
schoolers today do their homework on personal computers with 
many times the power of what ten years ago were massive, multi-
million dollar, and very tightly controlled supercomputers! New 
cars today have more computing power than the guidance system 
that landed the Apollo space capsule on the moon. The internet 
is but the beginning of a global information infrastructure 
that could totally change not only how we communicate, export, 
and do business, it could change our whole concept of national 
borders. The committee believes strongly that both our national 
security and our economic competitiveness will be greatly 
affected by our ability to maintain U.S. industry's leadership 
in the information technologies field.
    Finally, the Committee notes that it has been almost two 
years since the U.S. has had a law in place on dual-use export 
controls. The Committee believes this situation must not be 
tolerated any longer, as it can only serve to undermine 
critical U.S. global leadership on dual-use export controls.

                 Key Provisions of H.R. 361, as Amended

    H.R. 361 adapts the U.S. dual-use export control system to 
the challenges of the post-Cold War era. It removes unnecessary 
bureaucratic and other impediments to U.S. export 
competitiveness, while strengthening U.S. non-proliferation and 
counter-terrorism programs. The bill is designed to make our 
export control system more effective, more efficient, and more 
transparent.
    More specifically, H.R. 361:

                         combats proliferation

    Mandates more effective multilateral controls by, among 
other things, requiring the Secretary of State to pursue lists 
of upgrades in other nations' control systems and in the rules 
and procedures of the various non-proliferation regimes. The 
bill also requires that key differences between U.S. controls 
and those of other key suppliers be identified and that greater 
steps be taken to harmonize these nations' control requirements 
with our own.
    Creates a new, tough statutory basis for proliferation-
based end use controls, and adds a strict prohibition on any 
export that would materially contribute to a WMD program in any 
country that is not a member of, or cooperating with, a 
multilateral export control regime.
    Establishes a new statutory link between U.S. export 
controls and today's multilateral non-proliferation regimes: 
the Missile Technology Control Regime (MTCR), the Australia 
Group (which controls exports relating to chemical and 
biological weapons), the Nuclear Suppliers Group, and the 
Wassenaar Arrangement (the successor to COCOM). H.R. 361 
requires that U.S. export controls be based on the provisions 
of the multilateral export control regimes, except in cases 
where emergency controls are imposed.
    Updates U.S. anti-proliferation sanctions by: making 
permanent the Nuclear Proliferation Prevention Act; re-
codifying the sanctions against persons and entities that 
export items that contribute to a foreign chemical or 
biological weapon or missile program; adding targeted import 
sanctions to the country sanctions under the Nuclear 
Proliferation Prevention Act; and, adding a requirement that 
the Secretary of State seek overseas support for all such 
sanctions.

                           combats terrorism

    Greatly tightens current statutory restrictions on exports 
to terrorist countries. All proliferation-related and other 
dual-use exports and reexports to such countries are 
prohibited, except that the President may waive this 
prohibition if an export is essential to national security.
    Requires the Secretary of State to seek support for these 
anti-terrorism controls from other countries and from the 
various multilateral export control regimes.

                       increases competitiveness

    Increases government-industry cooperation, to include 
greater reliance on multiple export licenses that are designed 
to better encourage and acknowledge the internal compliance 
efforts of U.S. companies.
    Significantly reduces the statutory time lines for issuing 
licenses. Licensing reviews will be faster, and while the 
Department of Defense and other relevant agencies shall have 
the statutory authority to review any export license 
application submitted to the Department of Commerce, this new 
authority must be exercised pursuant to new time lines and 
disciplines.
    Imposes greater transparency and stricter conditions on the 
use of most unilateral export controls. The President must 
certify that any such controls will further significantly the 
national security or foreign policy of the United States, and 
that the benefits of the controls will exceed their economic 
costs to the United States. The President may then extend these 
controls only if he has been able to gain multilateral 
acceptance of the control, or if the President reports annually 
to the Congress that certain critical criteria are being met. 
The Secretary of State has a continuing duty to make such 
controls multilateral, and the Secretary of Commerce has the 
annual duty of compiling a list of unilateral controls and 
sanctions and estimating their impact on the U.S. economy.
    Provides procedures to ensure that U.S. exporters can 
petition for relief from unfair treatment. The procedures 
update current foreign availability procedures.
    Establishes a new statutory basis upon which questions of 
commodity jurisdiction between the U.S. munitions list and the 
U.S. dual-use list can be more quickly and transparently 
resolved.
    Requires the U.S. Government to provide exporters 
additional information about export controls. The Secretary of 
Commerce is required to publish more information about: the 
U.S. control lists, including controlled destinations and 
control rationales; other key governments' export control 
systems; and on the lists, rules and actions of the various 
multilateral regimes.
    Helps protect the rights of exporters by subjecting certain 
export control laws and regulations to greater administrative 
and judicial review.
    Mandates annual review of the achievement of minimized 
restrictions on the export of information technology products 
and services to realize the full benefits of U.S. leadership in 
the development of the global information infrastructure.
    With regard to export competitiveness, the committee notes 
that export control reform is especially imperative for our 
nation's small- to medium-sized exporters. Generally, they 
neither have the staff, the legal expertise, nor the time to 
devote to wading through hundreds of pages of complex 
regulations governing the export of products destined for 
benign commercial end-use overseas. In reporting this 
legislation, it is the desire of the committee that the various 
government agencies responsible for export controls ensure that 
the system is made clearer and more understandable for the 
small business exporter. In this regard, it is the committee's 
expectation that the licensing time lines contained in the 
legislation will be strictly adhered to because unnecessary 
delays in processing an export license for even one export sale 
may determine the future survivability of a small- or medium-
size business.

                            Committee Action

    H.R. 361 was introduced on January 4, 1995, by 
Representative Toby Roth, Chairman of the Subcommittee on 
International Economic Policy and Trade. The bill was referred 
to the Committee on International Relations, and on January 25 
was in turn referred to the Subcommittee on International 
Economic Policy and Trade.
    The Subcommittee heard testimony on this bill and on U.S. 
export controls generally at Hearings on January 25, March 14, 
June 13, September 6, and November 8, 1995. The Subcommittee 
also held about ten months of informal discussions on the bill 
with the Administration.
    On March 22, 1996, the Subcommittee on International 
Economic Policy and Trade met in open session to consider H.R. 
361, and for other purposes. The Subcommittee adopted by voice 
vote a Roth amendment in the nature of a substitute, and 
adopted by voice vote a Manzullo motion reporting H.R. 361, as 
amended, to the full Committee.
    On March 29, 1996, the Committee on International Relations 
met in open session to consider H.R. 361, as amended, agreed to 
several amendments, and by voice vote adopted the Bereuter 
motion favorably reporting H.R. 361, as amended, to the 
Committee of the Whole House.

            Rollcall Votes and Amendments and Final Passage

    In compliance with clause (2)(l)(2)(B) of rule XI of the 
Rules of the House of Representatives, the record of committee 
rollcall votes taken on final passage or amendments during the 
committee's consideration of H.R. 361, as amended, is set out 
below, as is a report of the committee's final action on the 
bill.

      Description of Amendment, Motion, Order or Other Proposition

    By voice vote, the Committee accepted amendments by 
Chairman Gilman, Subcommittee Chairman Roth, Ranking 
Subcommittee member Gejdenson, and Congressman Campbell.
    By rollcall vote, the Committee accepted a Roth amendment 
to the terms and conditions under which the Secretary of 
Commerce shall determine foreign availability.

                       record of committee votes

----------------------------------------------------------------------------------------------------------------
                                                       Answer                                            Answer 
         Name and State              Aye       No      Present    Name and State       Aye       No.     Present
----------------------------------------------------------------------------------------------------------------
Benjamin A. Gilman, N.Y., Chmn..        X   ........  ........  Lee H. Hamilton,    ........  ........  ........
                                                                 Ind.                                           
William F. Gooding, Pa..........  ........  ........  ........  Sam Gejdenson,      ........        X   ........
                                                                 Conn.                                          
James A. Leach, Iowa............        X   ........  ........  Tom Lantos, Calif.  ........        X   ........
Toby Roth, Wis..................        X   ........  ........  Robert G.           ........  ........  ........
                                                                 Torricelli, N.J..                              
Henry J. Hyde. Ill..............  ........  ........  ........  Howard L. Berman,   ........        X   ........
                                                                 Calif.                                         
Doug Bereuter, Nebr.............        X   ........  ........  Gary L. Ackerman,   ........        X   ........
                                                                 N.Y.                                           
Christopher H. Smith, N.J.......        X   ........  ........  Harry Johnston,     ........        X   ........
                                                                 Fla.                                           
Dan Burton, Ind.................  ........  ........  ........  Eliot L. Engel,     ........  ........  ........
                                                                 N.Y.                                           
Jan Meyers, Kans................        X   ........  ........  Eni F.H.            ........  ........  ........
                                                                 Faleomavaega, Am.                              
                                                                 Samoa.                                         
Elton Gallegly, Calif...........        X   ........  ........  Mattew G.           ........        X   ........
                                                                 Martinez, Calif.                               
Ileana Ros-Lehtinen, Fla........  ........  ........  ........  Donald M. Payne,    ........        X   ........
                                                                 N.J.                                           
Cass Ballenger, N.C.............        X   ........  ........  Robert E. Andrews,  ........  ........  ........
                                                                 N.J.                                           
Dana Rohrabacher, Calif.........        X   ........  ........  Robert Menendez,..  ........        X   ........
Donald A. Manzullo, Calif.......        X   ........  ........  Sherrod Brown,      ........        X   ........
                                                                 Ohio.                                          
Edward R. Royce, Calif..........        X   ........  ........  Cynthia A.          ........        X   ........
                                                                 McKinney, Ga.                                  
Peter T. King, N.Y..............        X   ........  ........  Alcee L. Hastings,  ........        X   ........
                                                                 Fla.                                           
Jay Kim, Calif..................        X   ........  ........  Albert Russell      ........        X   ........
                                                                 Wynn, Md.                                      
Sam Brownback, Kans.............        X   ........  ........  James Moran, V.A..  ........        X   ........
David Fundeburk, N.C............        X   ........  ........  Victor Frazer, VI.  ........  ........  ........
Steven J. Chabot, Ohio..........        X   ........  ........  Charlie Rose, NC..  ........  ........  ........
Marshall ``Mark'' Sanford, S.C..        X   ........  ........  Pat Danner, MO....  ........        X   ........
Matt Salmon, Ariz...............        X   ........  ........  ..................  ........  ........  ........
Amo Houghton, NY................  ........        X   ........  ..................  ........  ........  ........
Tom Campbell, CA................        X   ........  ........  ..................  ........  ........  ........
----------------------------------------------------------------------------------------------------------------

    The Bereuter motion that the bill be reported to the House 
with the recommendation that the bill, as amended, do pass, was 
accepted by voice vote.

                      section-by-section analysis

Section 1.--Table of contents

    Section 1 establishes a table of contents for purposes of 
this act.

                     TITLE I--EXPORT ADMINISTRATION

Section 101.--Short title

    Section 101 establishes a short title of the ``Export 
Administration Act of 1996''.

Section 102.--Findings

    Section 102 contains congressional findings concerning 
export control policy and its implementation.

Section 103.--Policy statement

    Section 103 establishes U.S. policies concerning export 
controls.

Section 104.--General provisions

    Section 104(a) authorizes the Secretary of Commerce to 
require various kinds of export licenses to include specific 
licenses and multiple export licenses that encourage and 
acknowledge exporters' internal control programs.
    Section 104(b) requires the Secretary of Commerce, in 
consultation with the Secretary of Defense and the heads of 
other relevant agencies, to establish a Commodity Control 
Index, which will include the items subject either to 
``multilateral,'' ``emergency,'' or ``short supply'' export 
controls. Each item on the Control Index shall be cross-
referenced with the specific countries, and as appropriate, the 
end users or end uses for which the export of the item is 
controlled.
    Section 104(c) requires the President to ensure that an 
updated list is published at least semi-annually that 
identifies those parties denied or debarred export privileges 
or sanctioned under the Act or under other laws, to include 
those who are designated by the Secretary of Treasury as 
blocked persons or as specially designated nationals. The 
Secretary of Treasury is required to publish in the Federal 
Register all blocked persons and specially designated nationals 
promptly upon their designation.
    Section 104(d) allows the President, subject to the 
provisions of this title, to delegate any authority granted to 
him under this title to officials that are appointed by him 
with the advice and consent of the Senate. The President may 
not delegate or transfer his authority to overrule or modify 
recommendations or decisions made by the Secretaries of 
Commerce, State, or Defense, or the authority under section 
106(a)(4).
    Section 104(e) requires the Secretary of Commerce to 
consult regularly with representatives from the private sector 
and to keep the public fully apprised of changes in export 
control policies and procedures.
    Section 104(f) requires the Secretary of Commerce to 
appoint export advisory committees, made up of representatives 
from industry and government, to provide technical advice and 
assistance to the Department of Commerce and other appropriate 
departments regarding export control policy and procedures. It 
is the committee's intent that this shall include advisory 
committee advice and assistance on the administration of the 
International Emergency Economic Powers Act by the Treasury 
Department's Office of Foreign Assets Control. This section, 
also among other things, authorizes the reimbursement of 
expenses incurred by members of the committees in connection 
with their duties.
    Section 104(g) establishes an interagency process for 
identifying and recommending to the Secretary items to be added 
or removed from the multilateral and emergency control lists 
and the licensing requirements that should or should not apply 
to these items. This process includes the right for the 
Secretary of Defense, Secretary of State, or the Secretary of 
Energy to appeal a decision to the President under certain 
conditions and time frames. The subsection also authorizes the 
Secretary of State to conduct negotiations with other countries 
relating to multilateral export control arrangements. U.S. 
proposals to such arrangements shall take into consideration 
technical information developed by the export advisory 
committees.
    Section 104(h) requires that all export controls 
implemented under this title support the policies established 
under section 103.
    Section 104(i) allows the Secretary of Commerce, in 
consultation with the Secretary of State, to impose export 
controls designed to fulfill obligations under United Nations 
resolutions or international treaty obligations, 
notwithstanding any provisions of this title.
    Section 104(j) prohibits export license application fees.

Section 105.--Multilateral controls

    Section 105(a) authorizes the President to control exports 
to implement multilateral export control regimes. The authority 
granted under this subsection may not be exercised to impose 
unilateral controls, as defined in section 116. The Committee 
notes that the inclusion of an item on a list of items subject 
to export controls under a multilateral export control regime 
should not alone constitute sufficient evidence that a control 
is not unilateral and thus also should not constitute 
sufficient evidence that a control is authorized under this 
section as opposed to section 106. The Committee envisions that 
there could be instances where the U.S. maintains a control 
that materially restricts the export of an item and that the 
control is not similarly imposed in similar circumstances by 
any other member country, and therefore that such control is 
unilateral.
    Section 105(b) requires the Secretary of Commerce, in 
consultation with other departments and agencies, to establish 
and maintain a Multilateral Control List that includes the 
items controlled under this section.
    Section 105(c) requires the President to ensure that steps 
are taken to increase the degree to which the licensing 
requirements of other export control regime members are 
harmonized with our own.
    Section 105(d) requires the Secretary of State to seek 
multilateral arrangements that are intended to secure effective 
achievement of the policies in Section 103. To this end, the 
Secretary of State is required to seek a list of specific 
standards for the arrangements themselves and for the national 
systems of the members to these arrangements.
    Section 105(e) permits, consistent with the rules and 
guidelines of the individual export control regimes and with 
the requirements of section 111(a)(1)(C), license-free exports 
to and among countries that are members of a regime or 
cooperating with a regime.
    Section 105(f) requires the Secretary of Commerce, to the 
extent not inconsistent with the requirements of a regime, to 
publish information on the policies of regimes of which the 
United States is a member within 6 months of the date of 
enactment of this Act. Within 2 months after joining or 
organizing a new regime, to the extent not inconsistent with 
the requirements of the regime, similar information on its 
policies must also be published. Changes in any information 
published under this section must be published within 2 months 
after the applicable regime adopts the changes.
    Section 105(g) requires that the Secretary of Commerce, 
under the policy guidance of the Committee established in 
section 114(c) and consistent with the procedures in 104(g), 
review the Multilateral Control List at least every two years 
to determine whether items, as well as specifications, 
performance thresholds, or licensing requirements on the items, 
need to be added, updated, or removed. Controls on information 
technologies products and services shall be reviewed every year 
to consider if the policy in section 103(12) is being achieved. 
A notice of each review must be published in the Federal 
Register 30 days in advance, and the Secretary is required to: 
consult the Secretary of Defense concerning militarily critical 
technologies; consult the appropriate advisory committees; 
consider whether items can be effectively controlled or not due 
to widespread domestic availability; consider whether 
significant competitive disadvantage is being caused; consider 
the results of determinations made under section 114(k); and, 
to consider the public comments received.

Section 106--Emergency controls

    Section 106(a) authorizes the President to impose 
unilateral controls provided the President makes certain 
determinations. The President must determine that: the controls 
are necessary to further significantly the nonproliferation, 
national security or foreign policies of the United States; the 
objective of the controls is in the overall national interest; 
reasonable alternative means to the controls are not available; 
the controls are likely to make substantial progress towards 
achieving a list of intended purposes; the controls are 
compatible with U.S. objectives and policy toward the target 
country; the reaction of other countries to the imposition of 
such controls is not likely to render them ineffective or 
counter-productive; the benefits of the control exceed the 
economic costs to the U.S.; and, the controls are enforceable.
    Unilateral controls expire 12 months after they are imposed 
unless they are adopted multilaterally, are incorporated in an 
embargo, or are extended for one year under the provisions of 
106(g).
    Section 106(b) requires the Secretary of Commerce to 
consult with the private sector before unilateral controls are 
imposed or extended.
    Section 106(c) requires the Secretary of State to consult 
with other countries regarding the controls.
    Section 106(d) requires that Congress be consulted before 
any unilateral controls are imposed. Before a new unilateral 
control can be imposed, the Secretary of Commerce must submit a 
report to Congress stating, among other things, that the 
control criteria set forth in 106(a) have been satisfied.
    Section 106(e) requires the Secretary of State, in 
consultation with the Secretary of Commerce and other 
appropriate departments and agencies, to pursue multilateral 
adoption of unilateral U.S. controls on an ongoing basis.
    Section 106(f) provides that unilateral controls will cease 
once similarly restrictive controls are imposed under section 
105, or once they are imposed in an embargo against a 
particular nation or are required to fulfill obligations under 
U.N. resolutions or international treaties. Once a unilateral 
control has expired, it normally cannot be reimposed for 6 
months.
    Section 106(g) provides for the extension of unilateral 
controls beyond the initial 12 months, and for subsequent 
annual extensions. The President must submit a report to 
Congress justifying the extension of a unilateral control 30 
days before its extension. In particular, such report shall 
contain determinations by the President that: the controls are 
likely to continue to make substantial progress towards 
achieving specified purposes identical to those purposes 
identified in subsection (a); that the impact of the controls 
has been compatible with the foreign policy objectives of the 
U.S.; that the reaction of other countries has not rendered the 
controls ineffective; that the effect of the controls on the 
export performance of the U.S., the competitive position of the 
U.S. as a supplier, and the economic well-being of individual 
U.S. companies and their employees and communities has not 
exceeded the benefit to the U.S.; and, that the U.S. has 
enforced the controls effectively. In analyzing economic 
impact, the Committee expects the President to consider both 
direct and indirect economic impact, and to include such 
considerations as the impact of the control on U.S. 
intellectual property rights.
    Section 106(h) provides that this section does not 
interfere with the President's authority to impose new 
embargoes under the International Emergency Economic Powers Act 
or the Trading with the Enemy Act. The subsection also provides 
that this section does not affect authorities conferred upon 
the President by these Acts or other provision of law as a 
result of a national emergency which were being exercised 
before the date of enactment of this Title.
    Section 106(i) prohibits the export of the following items 
to designated terrorist countries: items controlled pursuant to 
the Missile Technology Control Regime, the Australia Group, the 
Wassenaar Arrangement, section 309(c) of the Nuclear Non-
Proliferation Act of 1978; other items controlled under section 
105; and, items which could make a significant contribution to 
military logistics capabilities or that could enhance the 
ability of a country to support acts of terrorism. An exception 
is granted for food, medicine, and medical supplies, and the 
President may waive these prohibitions if he determines that 
doing so is essential to national security interests and so 
notifies the Congress. Licenses granted have to be notified to 
the Congress. The Secretary of State is required to seek 
support for these U.S. export prohibitions by other countries 
and by the multilateral export control regimes.
     Section 106(j) requires licenses for crime control and 
detection instruments to all countries except members of NATO, 
Japan, Australia, New Zealand, or other countries designated by 
the President. The Secretary of State must concur with the 
Secretary of Commerce regarding items controlled and licenses 
approved under this section.
     Section 106(k) allows the President to determine whether 
replacement parts will be subject to the controls imposed under 
section 106.
     Section 106(l) exempts transactions subject to the 
reporting requirements of title V of the National Security Act 
from the prohibitions contained in section 106.

Section 107.--Short supply controls

     Section 107(a) authorizes the President to control exports 
in order to protect the domestic economy from the drain of 
short supplies and the inflationary impact of foreign demand, 
taking into consideration the trade practices of other 
countries. The Secretary of Commerce must solicit public 
comments on any such controls. The President is authorized to 
impose export license fees for short supply items.
     Section 107(b) requires the Secretary of Commerce to 
monitor certain exports to carry out the provisions of this 
section and to report his findings weekly or monthly if 
appropriate. The Secretary of Commerce must consult with the 
Secretary of Energy concerning the fuel- and energy-related 
items that warrant monitoring.
     Section 107(c) allows entities that are representative of 
an industry that processes metallic materials to petition the 
Secretary of Commerce to monitor or control any such materials. 
The Secretary of Commerce must publish notices of petitions 
within 15 days, requesting public input within 30 days. The 
Secretary of Commerce must make a determination regarding a 
petition within 45 days of the end of the period for public 
input, taking into account an increase in exports, an increase 
in domestic price, the impact of exports on price and 
shortages, and the impact on the domestic economy. The 
Secretary of Commerce must publish his determination and any 
regulations implementing the determination. The Secretary of 
Commerce may consolidate similar petitions. Temporary controls 
can be imposed under this subsection only if necessary to 
protect the petitioning entity from irreparable harm and to 
protect the domestic economy from the drain of short supplies 
and the inflationary impact of foreign demand.
     Section 107(d) requires the approval of the Secretary of 
Agriculture for any controls imposed on agricultural 
commodities under this section. This section allows 
agricultural products to be stored in the United States for 
export notwithstanding subsequent imposition of controls under 
this section. Controls on agricultural commodities imposed 
under this section and section 106 must be reported to the 
Congress, and shall expire in 60 days unless the Congress 
enacts a joint resolution approving the controls. Such controls 
shall not extend for more than one year.
     Section 107(e) authorizes the Secretary of Commerce to 
grant an exception to the restriction on agricultural export 
controls for barter agreements entered into after September 30, 
1979, based on the reliability of the parties and the impact of 
the barter agreement on short supply.
     Section 107(f) continues sanctity for contracts to harvest 
western red cedar from state lands entered into before October 
1, 1979. This section also grants contract sanctity for 
agricultural exports.
     Section 107(g) stipulates that the export limitations of 
this Title will not apply to the transfer of crude oil or 
refined petroleum products for use by the Department of Defense 
or U.S.-supported facilities abroad.

Section 108.--Foreign boycotts

     Section 108 is intended to recodify Section 8 of the 
expired Export Administration Act of 1979.
     Section 108(a) prohibits any U.S. person from compliance 
with a foreign boycott against a country friendly to the United 
States. Compliance with a foreign boycott that is prohibited 
is: refusing to do business with a boycotted country, its 
nationals, residents, businesses, or with any other person, at 
the request of a boycotting country; discriminating against any 
U.S. person; furnishing information about the race, religion, 
sex, or national origin of any U.S. person; furnishing 
information concerning whether a person is conducting business 
with a boycotted country, or its nationals, residents, or 
businesses; furnishing information about charitable 
contributions to any organization which supports a boycotted 
country; or honoring a letter of credit that contains 
conditions relating to such a boycott.
     Activities permitted under this section are compliance 
with: prohibitions on the import of commodities from a 
boycotted country or prohibitions on shipments to a boycotting 
country on a carrier of a boycotted country; requirements to 
provide shipping documents; a boycotting country's unilateral 
and specific choice of carriers, insurers, and suppliers when 
importing into a boycotting country; the export requirements of 
a boycotting country regarding shipments; immigration 
requirements within a boycotting country; and, a boycotting 
country's laws governing activities exclusively within the 
country.
     Section 108(b) requires that regulations issued to 
implement section 106 support the anti-boycott policy. U.S. 
persons are required to notify the Secretary of Commerce when 
they are requested to comply with a foreign boycott. The 
Secretary of Commerce must publish such reports, unless 
publishing information on the pertinent items would 
disadvantage the U.S. person, and must periodically provide 
summaries of such reports to the Secretary of State.
     Section 108(c) provides that section 108 and related 
regulations preempt any state or District of Columbia laws 
pertaining, as listed, to foreign boycotts.

Section 109.--Procedures for processing export license applications; 
        other inquiries

     Section 109(a) gives the Secretary the primary 
responsibility to make export license application 
determinations, and establishes certain rules on procedures, 
calculation of processing times, and the reliability of 
parties. It also stipulates that, subject to the provisions of 
this section: if interagency referral of an application is not 
required, within 9 days of receipt the Secretary shall either 
issue a license or notify the applicant of the intent to deny; 
and, if interagency referral of the application is required, 
the Secretary shall, within 30 days of referral issue a 
license, notify the applicant of the intent to deny the 
application, or ensure that the application is subject to the 
interagency resolution process set forth in 109(d).
     Section 109(b) requires the Secretary to promptly: return 
the application if a license is not required; contact the 
applicant if an application is improperly completed; ensure 
that the classification stated on the application is correct; 
and, refer the application and all necessary recommendations 
and analysis to the Department of Defense and other agencies 
identified by the President, except that these departments and 
agencies are to notify the Secretary as to the specific types 
of applications that they do not wish to review.
    Section 109(c) requires reviewing agencies to promptly 
request additional information, if needed, and to provide a 
recommendation, either to approve or deny, within 30 days of 
receipt of a referral. Recommendations to deny or to impose 
conditions must include a statement of reasons consistent with 
the Act and cite the specific statutory and regulatory bases 
for the recommendation. Failure to provide a timely and 
reasoned recommendation is deemed ``no objection'' to the 
application.
    Section 109(d) establishes procedures for resolving 
interagency disputes. Under paragraph (1), the Secretary shall 
establish an interagency committee, and select its chairman, to 
review initially all license applications on which the 
departments and agencies are not in agreement. The Chairperson 
of such committee shall consider the interagency 
recommendations and inform them of his decision, which may 
include a decision that the particular application requires 
interagency escalation. An application may also be escalated 
interagency if the Chairperson's decision is appealed in 
writing by an official of another department or agency who is 
appointed by and with the advice and consent of the Senate.
    Under paragraph (2), the President is required to establish 
a process for resolving disagreements escalated from the 
interagency committee established under paragraph (1). Such 
process shall: be chaired by the Secretary of Commerce or a 
designee; ensure that applications are resolved or referred to 
the President within 90 days of initial filing; provide a 
dissenting department or agency an ability to appeal to the 
President; and, provide that a department or agency failing to 
take a timely position, citing the specific statutory and 
regulatory bases for a denial, be deemed to have no objection 
to the pending decision.
    Section 109(e) requires the Secretary, in cases where the 
Secretary has determined that the application should be denied, 
to inform the applicant of: the determination to deny; the 
statutory and regulatory basis for denial; possible 
modifications to allow approval; specific considerations, as 
permitted by national security and foreign policy, that led to 
denial; and the availability of appeal procedures. Applicants 
have 20 days to respond to an intent to deny notification.
    Section 109(f) requires that the time periods related to 
processing an application shall not include delays agreed to by 
the applicant, the time for pre-license checks, the time to 
obtain government-to-government assurances, the time for 
required multilateral review or international consultations, or 
the time required for mandatory Congressional notifications.
    Section 109(g) requires the Secretary to establish 
procedures for appeals of license denials and other 
administrative action. If action on an application is not taken 
within the specified times, the applicant may petition the 
Secretary for compliance with the time requirements. The 
Secretary shall immediately take action to correct the 
situation and notify the applicant. Under specified 
circumstances, the applicant may seek judicial relief.
    Section 109(h) requires the Secretary to provide commodity 
classifications within 14 days, and advisory opinions within 30 
days, of receipt of such requests.

Section 110.--Violations

    Section 110(a) imposes criminal penalties of not more than 
the greater of $500,000 or 5 times the value of the exports 
involved, or imprisonment for not more than 10 years, or both, 
against an individual who knowingly violates this title or any 
regulation, license, or order issued under this title. The 
penalties for entities are not more than the greater of $1 
million or 10 times the value of the exports involved. These 
penalties do not apply to antiboycott violations.
    The maximum criminal penalty for antiboycott violations by 
individuals is not more than the greater of five times the 
value of the exports or $250,000 per violation and/or 
imprisonment for up to 10 years. The maximum criminal penalty 
for antiboycott violations by entities is the greater of five 
times the value of the exports or $500,000 per violation.
    Section 110(b) further subjects violators to forfeiture of 
the items that were the subject of the violations, property 
used in the export of the items, and any property constituting 
or derived from any proceeds from the illegal transaction.
    Section 110(c) imposes civil penalties of not more than 
$250,000 for each violation of this title, except for 
violations of section 108, which may not exceed $50,000. This 
section also authorizes the Secretary of Commerce to deny 
export privileges to individuals who have violated this title.
    Section 110(d) authorizes the Secretary of Commerce to 
require the payment of civil penalties as a condition for the 
restoration of export privileges, or to defer or suspend the 
payment of the civil penalties for a probationary period.
    Section 110(e) requires that amounts realized from civil 
penalties be deposited as miscellaneous receipts in the 
Treasury. The amounts realized from civil penalties may be 
refunded within 2 years based on a material error of fact or 
law. No action for such refund may be maintained in court.
    Section 110(f) authorizes the Secretary of Commerce to deny 
export privileges for up to 10 years to any person convicted of 
violating this title or related acts, including revoking 
existing licenses. The Secretary may also exercise this 
authority with respect to related persons.
    Section 110(g) sets the statute of limitations for civil 
penalties or administrative sanctions at 5 years.
    Section 110(h) authorizes the Secretary of Commerce to 
define violations by regulation.
    Section 110(i) provides that sections 110 (c), (d), (e), 
(f), and (g) do not limit other available remedies, the 
authority to settle administrative proceedings, or the 
authority to compromise forfeitures.
    Section 110(j) provides for private rights of action by 
persons discriminated against by a foreign boycott-related 
action, or by persons who, on account of a violation of 
regulations issued pursuant to section 108, suffer a commercial 
loss. Such persons may sue U.S. persons committing the 
violation in the appropriate U.S. district court to recover 
actual damages. Punitive damages are also permitted. An action 
may be brought regardless of whether or not the defendant has 
been determined under this section to have violated the 
regulations issued pursuant to section 108. This section also 
sets the rule for the payment of the substantially prevailing 
parties' attorneys' fees.

Section 111.--Controlling proliferation activity

    Section 111(a) provides for the establishment of strict 
proliferation controls. For missile technology, the Secretary 
shall, in consultation with the Secretary of Defense and the 
heads of other appropriate departments and agencies, include on 
the Control Index dual-use items on the MTCR Annex and may 
include items that the U.S. proposes for inclusion on the MTCR 
Annex. Consistent with the MTCR, the Secretary shall require a 
license for export of items on the Control Index pursuant to 
this subsection, and for any item when the exporter knows it is 
for the design, development or manufacture of missiles in 
countries that are not MTCR adherents. Such licenses shall 
generally be denied if the ultimate consignee is a facility in 
a country that is not an adherent to the MTCR and the facility 
is designed to develop or build missiles.
    For chemical and biological weapons, the Secretary shall, 
in consultation with the Secretary of Defense and other 
appropriate departments, include on the Control Index dual-use 
items listed by the Australia Group or the Chemical Weapons 
Convention, and may include items the U.S. proposes for 
inclusion on the Australia Group control list. Consistent with 
the Australia Group, the Secretary shall require a license for 
any items on the Control Index pursuant to this subsection, and 
for any item when the exporter knows it is for the design, 
development or manufacture of a chemical or biological weapon.
    Section 111(b) makes technical amendments to the AECA.
    Section 111(c) prohibits the export of any item, whether on 
a control list or not, to a weapon of mass destruction or 
missile program or activity in a country that is not a member 
of, or is not cooperating with, a non-proliferation export 
control regime, unless the Secretary determines that such 
export would not make a material contribution to such program 
or activity.
    Section 111(d) recodifies the chemical and biological 
weapons sanctions that had existed under section 11(c) of the 
Export Administration Act of 1979, as amended.
     Section 111(e) recodifies the missile proliferation 
control sanctions that had existed under section 11(b) of the 
Export Administration Act of 1979, as amended.
     Section 111(f) provides that the provisions of this 
section do not affect activities subject to the reporting 
requirements of Title 5 of the National Security Act.
     Section 111(g) requires that the Secretary of State seek 
other countries support for sanctions imposed under this 
section.

Section 112.--Administrative and judicial review

     Section 112(a) exempts this title from administrative 
review under specified sections of Title 5 of the U.S.C., 
unless otherwise provided. This section does, however, provide 
for judicial review of a final agency action as specified.
     Section 112(b) provides for administrative review before 
imposition of civil penalties and sanctions imposed under 
section 110(c).
     Section 112(c) authorizes the Secretary of Commerce to 
request the Attorney General to bring a civil action against 
persons failing to pay civil penalties to recover the amounts 
imposed for violation of this title.
     Section 112(d) authorizes the Secretary of Commerce to 
deny for 180 days export privileges if there is reasonable 
cause to believe that such person has violated or is about to 
violate this title or any regulation, order or license issued 
under this title or if there is a criminal indictment pending 
against the person in question for violating this title or 
statutes listed in section 110(f). The order may be renewed for 
additional 180 day periods after notice and a hearing. The 
order may be appealed to an administrative law judge, and must 
be affirmed if there is reasonable cause for imposing the order 
or there is a criminal indictment pending against the person in 
question for violating this title or statutes listed in section 
110(f). The administrative decision may be appealed to the 
Secretary of Commerce, whose decision is subject to judicial 
review only on the same basis as the administrative appeal. The 
court may vacate the Secretary's order only if it is found to 
be arbitrary, capricious, an abuse of discretion, or otherwise 
illegal.

Section 113.--Enforcement

     Section 113(a) places the responsibility for providing 
guidance on the enforcement of this title with the Secretary of 
Commerce and authorizes designated officers or employees of the 
Department of Commerce and the Customs Service to carry out 
enforcement activities. The Customs Service may investigate 
within or outside the U.S. and at specified ports of entry or 
exit, and may search, detain, and seize commodities or 
technologies at ports of entry or exit as authorized by law or 
international agreements. The Department of Commerce may carry 
out the same activities within the United States, other than at 
ports and borders, or elsewhere with the concurrence of the 
Customs Service. Outside the United States, the Department of 
Commerce may conduct pre-license and post-shipment 
verifications and foreign boycott investigations. Any 
designated personnel may inspect records and property, take 
sworn testimony, and administer oaths and subpoenas. Pursuant 
to guidelines issued by the Attorney General, any Customs 
Officer or anyone from the Office of Export Enforcement of the 
Department of Commerce (OEE) may be authorized to execute 
warrants, make arrests, and carry firearms. In addition, 
Customs officials may, based on reasonable cause, stop, search, 
and examine vehicles, aircraft, or persons, and detain and 
search packages or containers. Customs officials may also 
detain and search items that such officials have probable cause 
to believe has or will be exported from the U.S. in violation 
of this Title.
     Section 113(b) subjects the items seized under section 
113(a) to forfeiture to the U.S. by the Department of Commerce 
or the U.S. Customs Service, subject to applicable laws.
     Section 113(c) requires that all violations be referred to 
the Secretary of Commerce for civil penalties and 
administrative sanctions, and/or to the Attorney General for 
criminal action.
     Section 113(d) authorizes the OEE, in the conduct of 
undercover investigations, to use funds available for export 
enforcement under this title to purchase property, lease space, 
establish or acquire businesses, or deposit such funds or the 
proceeds from undercover investigations in banks or other 
financial institutions. If such businesses with a net value of 
over $50,000 are to be liquidated, the Director of the OEE must 
report the circumstances to the Secretary of Commerce and the 
Comptroller General. The proceeds of any disposition after 
obligations incurred by the business must be deposited as 
miscellaneous receipts to the Treasury. Proceeds from 
investigations may be used to offset the cost of such 
investigations. The Director of the OEE will audit and report 
on such undercover operations, and the Secretary of Commerce 
must report annually to Congress the number of undercover 
operations pending, commenced, and completed.
     Section 113(e) provides that enforcement of this title 
includes cover the enforcement of all regulations, licenses, 
and orders issued under this title.

Section 114.--Export control authorities and procedures

     Section 114(a) requires that, at the President's 
direction, annual policy guidance be issued on the 
implementation of this title by export licensing officials. To 
develop this annual policy guidance, all export controls and 
regulations established pursuant to this title must be reviewed 
annually. This annual review must include an assessment of the 
costs and benefits of the imposition, extension, and removal of 
controls, including estimates of any lost or gained exports or 
jobs; the extent to which control objectives have been 
attained; and the impact on U.S. national security.
     Section 114(b) provides that the authorities conferred by 
this title be exercised by the Secretary of Commerce, unless 
otherwise reserved to the President or another department or 
agency, and may be delegated to the Under Secretary of Commerce 
for Export Administration.
     Section 114(c) creates an Export Control Policy Committee, 
comprised of the cabinet officials of the relevant agencies or 
their deputies, and chaired by the President's designee.
     Section 114(d) authorizes the President to appoint an 
Under Secretary of Commerce for Export Administration and two 
Assistant Secretaries of Commerce who, at the time of the 
enactment of this title may be those individuals who have been 
appointed under the Export Administration Act of 1979.
     Section 114(e) authorizes the President and the Secretary 
of Commerce to issue regulations to implement this title and 
requires that such regulations be submitted to appropriate 
departments, agencies, and Export Advisory Committees for 
review.
     Section 114(f) requires the Secretary of Commerce to 
consult with the Export Advisory Committees on creating or 
changing the regulations to implement this title and to report 
any amendments to the regulations to the Congress.
     Section 114(g) requires that confidential information, 
including Shipper's Export Declarations and such information as 
requested to be confidential by the person furnishing it, 
obtained under the Export Administration Act of 1979 and its 
predecessor statutes on or before June 30, 1980, be kept 
confidential. Information obtained under that act or this title 
after that date may be kept confidential only if statutes 
permit, except that information submitted, obtained, or 
considered in connection with license applications, 
classification and other related requests, foreign availability 
studies, investigations, and international treaties must not be 
disclosed to the public unless the Secretary of Commerce 
determines disclosure is in the national interest.
     Section 114(g) also entitles any committee of appropriate 
jurisdiction in the Congress and the GAO to review confidential 
information related to this title upon request. To protect 
listed sources, methods, and activities, however, only the 
agency that originally obtained such information may make it 
available to the GAO. The GAO must not disclose such 
information except to Congress, and Congress must not disclose 
such information unless a full committee of appropriate 
jurisdiction receiving such information determines that 
withholding such information is contrary to the national 
interest. Unauthorized disclosure is subject to fines, 
imprisonment, civil penalties, and dismissal.
     Section 114(h) authorizes the Secretary of Commerce to 
cooperate with public agencies and other entities to educate 
the public on export controls. The Secretary of Commerce is 
also authorized to collect funds to recover the cost of such 
programs, and use those funds to cover the cost of the 
specified activities.
     Section 114(i) authorizes the Secretary of Commerce to 
participate in and provide export control training for 
officials of other countries.
    Section 114(j) sets out certain parameters for controlling 
incorporated commodities and technologies. It states that 
licenses may not be required, except in certain very limited 
circumstances, for the export of a commodity solely because it 
contains parts or components (to include chemicals) controlled 
under this title, if such parts or components are essential to 
the item's functioning, are customarily included in sales of 
the item in non-controlled countries, and comprise 25 percent 
or less of the total value of the item, unless the commodity 
itself, if exported, would, by virtue of its functional 
characteristics as a whole, make a significant contribution to 
the military or proliferation potential of a controlled country 
or end-user detrimental to U.S. national security.
    Section 114(j) further states that no authority or 
permission may be required under sections 105 or 106, except in 
certain very limited circumstances, to reexport foreign-
produced commodities if less than 25 percent of their total 
value is accounted for by components controlled by the U.S., or 
10 percent if the reexport is destined for a terrorist or 
embargoed country. In addition, no authority or permission may 
be required under section 105 or 106, except in the same very 
limited circumstances, to reexport foreign-produced technology 
that is commingled with or drawn from U.S. technology if the 
controlled U.S. technology accounts for less than 25 percent of 
the total value of the reexported technology, or 10 percent if 
the reexport is destined for a terrorist or embargoed country.
    This section also permits the Secretary to require persons 
to report to the Department of Commerce their proposed 
calculations and underlying data in certain circumstances, an 
authority that the Committee expects will be used only in 
extraordinary situations.
    Section 114(k) establishes the policy--and requisite 
procedures to carry out the policy--that no U.S. 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. An exporter 
may petition, or the Secretary may conduct an evaluation on his 
or her own initiative, for relief from unfair impact.
    Relief shall be provided under 114(k), consistent with 
multilateral arrangements, by providing a change in the control 
status of the item in question, selectively approving exports, 
or by seeking multilateral support to eliminate the unfair 
impact. This provision shall not require the decontrol of an 
item that remains subject to control by a multilateral regime 
to which the U.S. belongs. Both the Secretary and the President 
may decide not to provide relief if it would create a 
significant risk to U.S. nonproliferation, foreign policy, or 
national security interests. Detailed procedures and time lines 
for considering petitions for relief are established, though 
certain terms and conditions are to be established by the 
Secretary of Commerce, with the concurrence of the Secretary of 
Defense. This is true in particular with regard to what grounds 
for relief may be used besides foreign availability, and with 
regard to some of the terms and conditions for deciding foreign 
availability.
    Section 114(l) creates an exemption from export controls 
for medical supplies and items for humanitarian purposes.
    Section 114(m) grants sanctity to contracts that are 
effective and licenses that are granted prior to the imposition 
of new controls under section 106. Exceptions are permitted if 
the President determines that an approved or contracted export 
could pose a direct threat to U.S. national security.
    Section 114(n) requires the Secretary of Commerce to 
publish in the Federal Register information on actions taken 
under this title, including calculations of commonly-used 
control index parameters and revisions to the control lists.
    Section 114(o) requires the Secretary of Commerce to keep 
the public fully apprised of changes in export control policy 
and to consult with the export advisory committees concerning 
any changes.
    Section 114(p) requires the appointment of at least one 
Department of Commerce representative in China with duties 
related to implementation of export controls under this title. 
Such attaches must conduct pre-license and post-shipment 
verifications and monitor end uses. Section 114(p) also 
requires the Secretary to ensure that appropriate resources and 
procedures are made available to ensure that sensitive items 
are not diverted to inappropriate end uses or end users in 
China, to include appropriate coordination with U.S. officials 
in Hong Kong. Such sums as may be necessary are authorized to 
be appropriated for these purposes. The Committee notes recent 
evidence, including a GAO report in 1995 and recent information 
concerning the possible diversion of at least one U.S. export, 
that greater efforts are required to protect against U.S. 
exports being diverted to improper uses in China.
    Section 114(q) requires that licenses granted under this 
title cover the minimum technical data necessary to install, 
repair, maintain, inspect, and operate the licensed items.
    Section 114(r) allows for one-for-one replacement of spare 
parts associated with a lawfully exported item to be exported 
without a separate license.

Section 115.--Annual report

    Section 115(a) requires the Secretary of Commerce to submit 
an annual report to Congress on the administration of this 
title and specifies the topics that must be reviewed in the 
annual report.
    Section 115(b) requires that an analysis be included in the 
annual report regarding significant differences between the 
export controls of the United States and our major trading 
partners, particularly as these differences relate to the 
implementation of multilateral export control regimes. The 
report must include a listing of U.S. unilateral controls and 
sanctions and their estimated economic impact.
    Section 115(c) requires the GAO to analyze the annual 
section 115(b) report and to provide its own views within 90 
days.

Section 116.--Definitions

    Section 116 provides definitions of certain terms for 
purposes of this act, including affiliate, adherent, Australia 
Group, Chemical Weapons Convention, commodity, control/
controlled, control index, export, export control regime, 
foreign availability, item, licensing requirement, member, 
missile, Missile Technology Control Regime, MTCR annex, nuclear 
explosive device, Nuclear Supplier Group, person, reexport, 
Secretary, technology, unilateral and unilaterally, United 
States, United States person, Wassenaar Arrangement, and 
weapons of mass destruction.

Section 117.--Effects on other acts

    Section 117(a) requires that no item may be included on 
both the control index of this Title and the State Department's 
munitions list after the effective date of this act. To resolve 
interagency disputes over commodity jurisdiction and 
classification, the President is to establish procedures which 
satisfy a specified list of requirements. These requirements 
include that disputes shall normally be resolved within 60 
days, and that disputes needing escalation to the President 
shall normally be referred to the President within 90 days. The 
Committee notes that in the last two Congresses the Committee 
had believed it necessary to include far more detailed 
provisions concerning commodity jurisdiction, to include 
provisions dealing exclusively with specific sectoral problems. 
This more detailed language has been omitted in this bill due 
in part to recent progress made by the Administration. The 
Committee especially supports the recent decisions by the 
President to transfer certain dual-use communications 
satellites and jet engine technologies to the Commerce 
Department's control. Regarding these items, the Committee 
notes that to be consistent with this subsection, exporters 
shall be subject only to the licensing requirements of this 
title for any items transferred.
    Section 117(a) also specifies that the authority granted 
under this title and under section 38 of the Arms Export 
Control Act (22 U.S.C. 2778) must be exercised in such a manner 
as to share information regarding the trustworthiness of 
parties.
    Section 117(b) provides that, except as otherwise provided 
in this title, nothing in the title supersedes the provisions 
of any other laws authorizing controls over exports of any 
commodities or technology.
    Section 117(c) specifies that the licensing procedures of 
section 109 shall supersede the licensing procedures of the 
Nuclear Non-Proliferation Act (NNPA) for nuclear-related dual-
use items.
    Section 117(d) amends the International Emergency Economic 
Powers Act (IEEPA) to require that the Presidential reports to 
Congress identify unilateral controls under IEEPA, and in those 
cases explain why the control is needed, what is being done to 
make the controls multilateral, and the estimated U.S. economic 
losses. In addition, section 117(g) amends IEEPA to include the 
same confidentiality provision contained in section 114(g). 
This section also amends IEEPA to provide that criminal and 
civil penalties may be imposed against a person who attempts to 
violate a license, order, or regulations issued under IEEPA.
    Section 117(e) amends the Trading With the Enemy Act (TWEA) 
to provide that criminal and civil penalties may be imposed 
against a person who attempts to violate a license, order, or 
regulations issued under the TWEA.
    Section 117(f) requires the Secretaries of Treasury and 
State to report to Congress, within 6 months of enactment, on 
ways to make the operations of Treasury's Office of Foreign 
Assets Control and State's Office of Defense Trade Controls 
more effective and efficient in responding to licensing and 
other requests of U.S. exporters.

Section 118.--Secondary Arab boycott

     Section 118(a) expresses the sense of Congress that Arab 
League countries should end the secondary Arab boycott. It also 
establishes the conditions under which the United States will 
consider the secondary Arab boycott to have ended.
     Section 118(b) defines the secondary Arab boycott.

Section 119.--Conforming amendments to other laws

     Section 119(a) makes technical corrections that conform 
the Arms Export Control Act necessitated by this title.
     Section 119(b) makes technical corrections to other 
provisions of law.
     Section 119(c) repeals the Export Administration Act of 
1979.

Section 120.--Effective date

     Section 120 provides that this title will expire on June 
30, 2001.

Section 121.--Savings provisions

     Section 122(a) preserves administrative actions that were 
based on the Export Control Act of 1949, the Export 
Administration Act of 1969, Export Administration Act of 1979, 
or repealed provisions of the Arms Export Control Act and 
Chemical and Biological Weapons Control and Warfare Elimination 
Act of 1991.
     Section 122(b) preserves pending proceedings or 
determinations under the Export Administration Act of 1979, or 
repealed provisions of the Arms Export Control Act and 
Biological Weapons Control and Warfare Elimination Act of 1991.
     Section 122(c) preserves determinations made under section 
6(j) of the Export Administration Act of 1979 until superseded 
by determinations made under section 106(i) of this Title.

             TITLE II--NUCLEAR PROLIFERATION PREVENTION ACT

Section 201.--Repeal of termination of provisions of the Nuclear 
        Proliferation Prevention Act of 1994

     Section 201 makes permanent the Nuclear Proliferation 
Prevention Act, makes two minor amendments to that Act, and 
repeals the judicial review provision in Section 824 of that 
Act.

Section 202.--Seeking multilateral support for unilateral sanctions

     Section 202 requires the Secretary of State to seek 
overseas support for sanctions imposed under this title.

Section 203.--Sanctions under Nuclear Proliferation Prevention Act of 
        1994

     Section 203 amends the Arms Export Control Act (AECA) by 
adding a new sanction under which the President would be 
required to prohibit the importation into the United States of 
specific products produced by persons who have engaged in the 
proliferation of nuclear weapons, as defined by Section 
102(b)(1) of the AECA. By adding this new provision, the 
Committee intends to make the threat of sanctions more 
effective by targeting the sanction to maximize its impact on 
the offending party or parties and to minimize its impact on 
the U.S. trading community. The sanction has been written so as 
not to so limit its scope that it would have a negligible 
impact on the parties engaged in the violation, nor so broadly 
that it would dilute the impact on these parties and adversely 
affect the interests of the United States. The President has 
been granted the flexibility to impose this new sanction in a 
manner that best advances the goal of non-proliferation.

                      Committee Oversight Findings

     In compliance with clause 2(l)(3)(A) of rule XI of the 
Rules of the House of Representatives, the Committee reports 
that the findings and recommendations of the Committee, based 
on oversight activities under clause 2(b)(1) of rule X of the 
Rules of the House of Representatives, are incorporated in the 
descriptive portions of this report.
     Among the principal oversight activities which contributed 
to the Committee's formulation of H.R. 361 were: Extensive 
hearings and briefings on the current export control system, 
the various international export control regimes, and issues 
pertinent to exports regulated under this bill by the Committee 
and by the Subcommittee on International Economic Policy and 
Trade; and ongoing consultations between the Committee Members 
and staff and executive branch officials.

         Committee on Government Reform and Oversight Findings

     No findings or recommendations of the Committee on 
Government Reform and Oversight were received as referred to in 
clause 2(l)(3)(D) of rule XI of the Rules of the House of 
Representatives.

               New Budget Authority and Tax Expenditures

     The Committee adopts the cost estimate of the 
Congressional Budget Office, set out below, as its submission 
of any required information on new budget authority, new 
spending authority, new credit authority, or an increase or 
decrease in the national debt required by clause 2(l)(3)(B) of 
rule XI of the House of Representatives.

                     Inflationary Impact Statement

     In compliance with clause 2(l)(4) of rule XI of the Rules 
of the House of Representatives, the Committee estimates that 
H.R. 361 will have no significant inflationary impact on prices 
and costs in the operation of the national economy.

               Congressional Budget Office Cost Estimate

     In compliance with clause 2(l)(3)(C) of rule XI of the 
Rules of the House of Representatives and section 423 of Public 
Law 104-4, the Committee sets forth with respect to H.R. 361 
the following estimates and comparison prepared by the Director 
of the Congressional Budget Office under section 403 of the 
Budget Act of 1974 and section 424 of Public Law 104-4:
    Bill number: H.R. 361.
    Bill title: Omnibus Export Administation Act of 1996.
    Bill status: As ordered reported by the House Committee on 
International Relations on March 29, 1996.
    Bill purpose: H.R. 361 would replace the expired Export 
Administration Act (EEA), thereby updating the system of export 
controls for dual-use technologies and commodities. Since 
expiration of the EEA in 1994, the President has extended 
export controls pursuant to his authority under the 
International Emergency Economic Powers Act. The Bureau of 
Export Administration (BXA) in the Department of Commerce 
currently administers the system of export controls.
    Title I of H.R. 361 would require the Secretary of Commerce 
to establish a Commodity Control Index of all items subject to 
unilateral, multilateral, or short supply export controls. The 
title would establish procedures for including items on the 
control index and would provide for an export advisory 
committee to provide technical assistance to the BXA. The BXA 
also would be required to publish specific information 
concerning export controls, and to prepare an annual report to 
Congress on the status of export controls.
    Title I also would establish procedures for export license 
applications and would require the BXA to make decisions on 
such applications within nine days of when the application is 
submitted. The BXA would be required to consult with various 
agencies when issuing export licenses for certain commodities. 
Finally, this title would enable BXA to carry out enforcement 
activities and would increase the fines and penalties for 
violations of export controls.
    Title II would repeal the expiration date of the Nuclear 
Proliferation Prevention Act of 1994 (Public Law 103-236), 
thereby extending the law indefinitely. Title II also would 
reqire the Secretary of State to seek overseas support for 
sanctions imposed under this act.
    5. Estimated Cost to the Federal Government: The following 
table summarizes the budgetary impact of H.R. 361. Because the 
bill does not provide a specific authorization, the table shows 
two alternative authorization levels for fiscal years 1997-
2000--without adjustment for anticipated inflation, and with 
adjustment for inflation. Outlay estimates are based on 
historical spending rates for this program and assume that 
appropriations will be provided before the start of each fiscal 
year.
    Assuming an adjustment for inflation, CBO estimates that 
discretionary spending to carry out the provisions of this bill 
would total $170 million over the 1997-2000 period. H.R. 361 
also would affect direct spending and receipts, but all such 
changes would be less than $500,000 for each year.

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                                                                       1996     1997     1998     1999     2000 
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                                       SPENDING SUBJECT TO APPROPRIATIONS                                       
                                                                                                                
Spending under current law:                                                                                     
    Budget authority...............................................       39  .......  .......  .......  .......
    Estimated outlays..............................................       38        6        2  .......  .......
                                                                                                                
                                        Without Adjustment for Inflation                                        
                                                                                                                
Proposed changes:                                                                                               
    Estimated authorization level..................................  .......       41       41       41       41
    Estimated outlays..............................................  .......       35       39       41       41
Spending under H.R. 361:                                                                                        
    Estimated authorization level \1\..............................       39       41       41       41       41
    Estimated outlays..............................................       38       41       41       41       41
                                                                                                                
                                          With Adjustment for Inflation                                         
                                                                                                                
Proposed Changes:                                                                                               
    Estimated authorization level..................................  .......       42       44       45       47
    Estimated outlays..............................................  .......       36       42       45       47
Spending under H.R. 361:                                                                                        
    Estimated authorization level \1\..............................       39       42       44       45       47
    Estimated outlays..............................................       38       42       44       45       47
                                                                                                                
                                          REVENUES AND DIRECT SPENDING                                          
                                                                                                                
Estimated revenues.................................................      (2)      (2)      (2)      (2)      (2)
Estimated Budget Authority.........................................  .......      (2)      (2)      (2)      (2)
Estimated outlays..................................................  .......      (2)      (2)      (2)     (2) 
----------------------------------------------------------------------------------------------------------------
\1\ The 1996 level is the amount appropriated for the year.                                                     
\2\ Less than $500,000.                                                                                         

    The costs of this bill fall primarily within budget 
function 370.
    6. Basis of Estimate: For purposes of this estimate, CBO 
assumes that the bill is enacted by the end of fiscal year 
1996, that amounts of the estimated authorization levels are 
appropriated prior to the start of each fiscal year, and that 
outlays follow historical spending rates for BXA programs.

Spending subject to appropriations

    In the absence of a specific authorization of 
appropriations for BXA to carry out the provisions of this 
bill, CBO has estimated the amounts necessary to implement H.R. 
361. We based our estimate on the amount of money that BXA 
currently uses to administer export controls plus the amount 
needed to administer any new tasks required by H.R. 361.
    For 1996, appropriations to date (annualized) are about $39 
million, of which an estimated $37 million will be used to 
administer export controls. Based on information from BXA, CBO 
estimates that BXA would require an additional $2 million a 
year to carry out the tasks required by H.R. 361 that are not 
being done under current law. These amounts would be spend 
primarily to support at least one export officer in Beijing, 
China and to comply with the expanded reporting requirements of 
the bill. Therefore, CBO estimates that implementation of H.R. 
361 would result in total costs to the BXA of about $41 million 
in fiscal year 1997 and subsequent years, assuming no 
adjustment for inflation. Costs adjusted for inflation would be 
higher in each year.
    H.R. 361 would require the BXA to consult with various 
agencies when issuing licenses for certain commodities. These 
agencies already provide information to BXA under current law 
and executive order and, hence, the additional cost to the 
government of implementing these provisions of the bill would 
not be significant. The bill also would require the Secretary 
of State to seek international support for sanctions imposed 
under the bill and would require the Department of Defense to 
assess the impact of export controls on national security. 
Based on information from these agencies, CBO estimates that 
the additional cost to the federal government of implementing 
these provisions of the bill would not be significant.

Revenues and direct spending

    Section 110 of the bill would increase the maximum civil 
and criminal penalties for violations of export control 
regulations and statutes. CBO expects that receipts would 
increase as a result of the penalty changes, but that the 
increase would be less than $500,000 annually because the 
maximum penalties are rarely assessed, even under current law. 
Payments of criminal fines are deposited in the Crime Victims 
Fund and are spent without the need for appropriations action, 
in the following year.
    7. Pay-as-you-go considerations: Section 252 of the 
Balanced Budget and Emergency Deficit Control Act of 1985 sets 
up pay-as-you-go procedures for legislation affecting direct 
spending or receipts through 1998. H.R. 361 would increase 
fines and penalties for violations of export controls. Any 
increase in fine collections and civil penalties would be 
classified as a change in governmental receipts and would count 
for pay-as-you-go scoring. CBO estimates that the increase in 
fine collections would not be significant. Criminals fines 
would be deposited in the Crime Victims Fund and spent in the 
following year. The increase in direct spending would be the 
same as the amount of fines collected with a one-year lag. 
Therefore, additional direct spending would also be negligible. 
The following table summarizes the pay-as-you-go impact of this 
bill.

------------------------------------------------------------------------
                                            1996       1997       1998  
------------------------------------------------------------------------
Change in outlays......................          0          0          0
Change in receipts.....................          0          0          0
------------------------------------------------------------------------

    8. Estimated impact on State, local, and tribal 
governments: Section 4 Public Law 104-4 excludes from 
application of the act legislative provisions that are 
necessary for the national security. CBO has determined that 
all provisions of H.R. 361 either fit within this exclusion or 
codify existing federal requirements, and thus do not 
constitute new intergovernmental mandates.
    9. Estimated impact on the private sector: CBO has 
determined that all provisions of H.R. 361 either fit within 
the national security exclusion of Public Law 104-4 or 
codifying existing federal requirements, and thus do not 
constitute new private sector mandates.
    10. Previous CB0 estimate: None.
    11. Estimate prepared by: Federal Cost Estimate--Rachel 
Forward, Sunita D'Monte, Stephanie Weiner; State and Local 
Government Impact--Pepper Santalucia; Private Sector Impact--
Amy Downs.
    12. Estimate approved by: Paul N. Van de Water, Assistant 
Director for Budget Analysis.

                         Jurisdictional Issues

    H.R. 361, as reported by the Committee on International 
Relations, contains several provisions which fall within the 
shared jurisdiction of other committees of the House, including 
the Committee on National Security and the Committee on Ways 
and Means. As concerns the jurisdiction of the Committee on 
National Security, Chairman Spence has supplied the following 
letter:

                    Committee on National Security,
                                  House of Representatives,
                                    Washington, DC, April 15, 1996.
Hon. Benjamin A. Gilman,
Chairman, Committee on International Relations,
House of Representatives, Washington, DC.
    Dear Ben: I understand the Committee on International 
Relations has recently ordered reported H.R. 361, the Omnibus 
Export Administration Act of 1996. The bill includes a number 
of provisions that fall within the legislative jurisdiction of 
the Committee on National Security pursuant to House Rule X.
    As you know, H.R. 361 as reported resulted from extensive 
discussions between our two committees in an effort to address 
the historical concerns the House National Security Committee 
has had in this area. In this regard, I want to express my 
sincere appreciation to you and Chairman Roth for the 
cooperative and productive manner in which those discussions 
were held.
    In recognition of your committee's desire to bring this 
legislation expeditiously before the House of Representatives, 
the Committee on National Security will forego a request for 
sequential referral of the bill, without, of course, waiving or 
diminishing this committee's jurisdiction over the issues with 
which it is concerned. Of course, this committee will seek the 
appointment of conferees with respect to provisions within its 
legislative jurisdiction during any conference on the bill. I 
also request that this letter be printed in your committee's 
report on this legislation.
    Thank you for your assistance and prompt attention to this 
matter, and I look forward to supporting H.R. 361 on the House 
floor.
    With warm personal regards, I am
            Sincerely,
                                           Floyd D. Spence,
                                                          Chairman.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3 of rule XIII of the Rules of the 
House of Representatives, changes in existing law made by the 
bill, as reported, are shown as follows (existing law proposed 
to be omitted is enclosed in black brackets, new matter is 
printed in italic, existing law in which no change is proposed 
is shown in roman):

                        ARMS EXPORT CONTROL ACT

          * * * * * * *

                  Chapter 3.--MILITARY EXPORT CONTROLS

          * * * * * * *
  Sec. 38. Control of Arms Exports and Imports.--(a) * * *
          * * * * * * *
  (e) In carrying out functions under this section with respect 
to the export of defense articles and defense services, the 
President is authorized to exercise the same powers concerning 
violations and enforcement which are conferred upon 
departments, agencies and officials by [subsections (c), (d), 
(e), and (g) of section 11 of the Export Administration Act of 
1979, and by subsections (a) and (c) of section 12 of such Act] 
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, 
subject to the same terms and conditions as are applicable to 
such powers under such Act. Nothing in this subsection shall be 
construed as authorizing the withholding of information from 
the Congress. Notwithstanding section [11(c) of the Export 
Administration Act of 1979] 110(c) of the Export Administration 
Act of 1996, the civil penalty for each violation involving 
controls imposed on the export of defense articles and defense 
services under this section may not exceed $500,000.
          * * * * * * *
  (g)(1) The President shall develop appropriate mechanisms to 
identify, in connection with the export licensing process under 
this section--
          (A) persons who are the subject of an indictment for, 
        or have been convicted of, a violation under--
                  (i) this section,
                  [(ii) section 11 of the Export Administration 
                Act of 1979 (50 U.S.C. App. 2410),]
                  (ii) section 110 of the Export Administration 
                Act of 1996,
          * * * * * * *

SEC. 39A. PROHIBITION ON INCENTIVE PAYMENTS.

  (a) * * *
          * * * * * * *
  (c) In the enforcement of this section, the President is 
authorized to exercise the same powers concerning violations 
and enforcement and imposition of civil penalties which are 
conferred upon departments, agencies and officials by 
subsections [(c), (d), (e), and (f) of section 11 of the Export 
Administration Act of 1979 and section 12(a) of such Act] (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, subject to the same terms and conditions as are 
applicable to such powers under that Act, except that 
notwithstanding section [11(c)] 110(c) of that Act, the civil 
penalty for each violation of this section may not exceed 
$500,000 or five times the amount of the prohibited incentive 
payment, whichever is greater.
          * * * * * * *
  Sec. 40. Transactions With Countries Supporting Acts of 
International Terrorism.
  (a) * * *
          * * * * * * *
  (k) Civil Penalties; Enforcement.--In the enforcement of this 
section, the President is authorized to exercise the same 
powers concerning violations and enforcement which are 
conferred upon departments, agencies, and officials by sections 
[11(c), 11(e), 11(g), and 12(a) of the Export Administration 
Act of 1979] 110(b), 110(c), 110(e), 113(a), and 113(b) of the 
Export Administration Act of 1996 (subject to the same terms 
and conditions as are applicable to such powers under that 
Act), except that, notwithstanding section [11(c)] 110(c) of 
that Act, the civil penalty for each violation of this section 
may not exceed $500,000.
          * * * * * * *

  CHAPTER 7--CONTROL OF MISSILES AND MISSILE EQUIPMENT OR TECHNOLOGY 

  Sec. 71. Licensing.--
  (a) Establishment of List of Controlled Items.--The Secretary 
of State, in consultation with the Secretary of Defense, the 
Director of the Arms Control and Disarmament Agency, and the 
heads of other appropriate departments and agencies, shall 
establish and maintain, as part of the United States Munitions 
List, a list of all items on the MTCR Annex the export of which 
is not controlled under section [6(l) of the Export 
Administration Act of 1979] 111(a) of the Export Administration 
Act of 1996.
          * * * * * * *

SEC. 73A. NOTIFICATION OF ADMITTANCE OF MTCR ADHERENTS.

  Following any action by the United States that results in a 
country becoming [a] an MTCR adherent, the President shall 
transmit promptly to the Congress a report which describes the 
rationale for such action, together with an assessment of that 
country's nonproliferation policies, practices, and 
commitments. Such report shall also include the text of any 
agreements or understandings between the United States and such 
country regarding the terms and conditions of the country's 
adherence to the MTCR.
          * * * * * * *

        CHAPTER 8--CHEMICAL OR BIOLOGICAL WEAPONS PROLIFERATION

  Sec. 81. Sanctions Against Certain Foreign Persons.
  (a) Imposition of Sanctions.--
          (1) Determination by the president.--Except as 
        provided in subsection (b)(2), the President shall 
        impose both of the sanctions described in subsection 
        (c) if the President determines that a foreign person, 
        on or after the date of the enactment of this section, 
        has knowingly and materially contributed--
                  (A) through the export from the United States 
                of any goods or technology that are subject to 
                the jurisdiction of the United States under 
                this Act,
                  (B) 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 Act, or
          * * * * * * *

             CHAPTER 10--NUCLEAR NONPROLIFERATION CONTROLS

          * * * * * * *

SEC. 102. NUCLEAR REPROCESSING TRANSFERS, ILLEGAL EXPORTS FOR NUCLEAR 
                    EXPLOSIVE DEVICES, TRANSFERS OF NUCLEAR EXPLOSIVE 
                    DEVICES, AND NUCLEAR DETONATIONS.

  (a) * * *
  (b) Prohibitions on Assistance to Countries Involved in 
Transfer or Use of Nuclear Explosive Devices; Exceptions; 
Procedures Applicable.--(1) * * *
  (2) The sanctions referred to in paragraph (1) are as 
follows:
          (A) * * *
          * * * * * * *
          (G) The authorities of [section 6 of the Export 
        Administration Act of 1979] section 105 or 106 of the 
        Export Administration Act of 1996 shall be used to 
        prohibit exports to that country of specific goods and 
        technology (excluding food and other agricultural 
        commodities), except that such prohibition shall not 
        apply to any transaction subject to the reporting 
        requirements of title V of the National Security Act of 
        1947 (relating to congressional oversight of 
        intelligence activities).
          (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.
          (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.
          * * * * * * *
                              ----------                              


              INTERNATIONAL EMERGENCY ECONOMIC POWERS ACT

          * * * * * * *

           TITLE II--INTERNATIONAL EMERGENCY ECONOMIC POWERS

          * * * * * * *

                         grants of authorities

  Sec. 203. (a) * * *
  (b) The authority granted to the President by this section 
does not include the authority to regulate or prohibit, 
directly or indirectly--
          (1) * * *
          * * * * * * *
          (3) the importation from any country, or the 
        exportation to any country, whether commercial or 
        otherwise, regardless of format or medium of 
        transmission, of any information or informational 
        materials, including but not limited to, publications, 
        films, posters, phonograph records, photographs, 
        microfilms, microfiche, tapes, compact disks, CD ROMs, 
        artworks, and news wire feeds. The exports exempted 
        from regulation or prohibition by this paragraph do not 
        include those which are otherwise controlled for export 
        under [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] the Export 
        Administration Act of 1996, or with respect to which 
        acts are prohibited by chapter 37 of title 18, United 
        States Code; or
          * * * * * * *

                        consultation and reports

  Sec. 204. (a) * * *
  (b) Whenever the President exercises any of the authorities 
granted by this title, he shall immediately transmit to the 
Congress a report specifying--
          (1) * * *
          * * * * * * *
          (4) why the President believes such actions are 
        necessary to deal with those circumstances; [and]
          (5) any foreign countries with respect to which such 
        actions are to be taken and why such actions are to be 
        taken with respect to those countries[.]; and
          (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.
  (c) At least once during each succeeding six-month period 
after transmitting a report pursuant to subsection (b) with 
respect to an exercise of authorities under this title, the 
President shall report to the Congress with respect to the 
action taken, since the last such report, in the exercise of 
such authorities, and with respect to any changes which have 
occurred concerning any information previously furnished 
pursuant to paragraphs (1) through [(5)] (6) of subsection 
(b)[.], 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.
          * * * * * * *

                               penalties

  Sec. 206. (a) A civil penalty of not to exceed $10,000 may be 
imposed on any person who violates, or attempts to violate, any 
license, order or regulation issued under this title.
  (b) Whoever willfully violates, or willfully attempts to 
violate, any license, order, or regulation issued under this 
title shall, upon conviction, be fined not more than $50,000 
or, if a natural person, may be imprisoned for not more than 
ten years, or both; and any officer, director, or agent of any 
corporation who knowingly participates in such violation may be 
punished by a like fine, imprisonment, or both.
          * * * * * * *

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.
  Sec. [208.] 209. If any provision of this Act is held 
invalid, the remainder of the Act shall not be affected 
thereby.
          * * * * * * *
                              ----------                              


                       TRADING WITH THE ENEMY ACT

          * * * * * * *
  Sec. 5. (a) * * *
  (b)(1) * * *
          * * * * * * *
  (4) The authority granted to the President by this section 
does not include the authority to regulate or prohibit, 
directly or indirectly, the importation from any country, or 
the exportation to any country, whether commercial or 
otherwise, regardless of format or medium of transmission, of 
any information or informational materials, including but not 
limited to, publications, films, posters, phonograph records, 
photographs, microfilms, microfiche, tapes, compact disks, CD 
ROMs, artworks, and news wire feeds. The exports exempted from 
regulation or prohibition by this paragraph do not include 
those which are otherwise controlled for export under [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] the Export Administration Act of 1996, or with respect 
to which acts are prohibited by chapter 37 of title 18, United 
States Code.
          * * * * * * *
  Sec. 16. (a) Whoever shall willfully violate, or attempt to 
violate, any of the provisions of this Act or of any license, 
rule, or regulation issued thereunder, and whoever shall 
willfully violate, attempt to violate, neglect, or refuse to 
comply with any order of the President issued in compliance 
with the provisions of the Act shall, upon conviction, be fined 
not more than $1,000,000, or if a natural person, be fined not 
more than $100,000, or imprisoned for not more than ten years 
or both; and the officer, director, or agent of any corporation 
who knowingly participates in such violation shall, upon 
conviction, be fined not more than $100,000 or imprisoned for 
not more than ten years or both.
  (b)(1) A civil penalty of not to exceed $50,000 may be 
imposed by the Secretary of the Treasury on any person who 
violates, or attempts to violate, any license, order, rule, or 
regulation issued in compliance with the provisions of this 
Act.
          * * * * * * *
                              ----------                              


           SECTION 502B OF THE FOREIGN ASSISTANCE ACT OF 1961

  Sec. 502B. Human Rights.--(a)(1) * * *
  (2) Except under circumstances specified in this section, no 
security assistance may be provided to any country the 
government of which engages in a consistent pattern of gross 
violations of internationally recognized human rights. Security 
assistance may not be provided to the police, domestic 
intelligence, or similar law enforcement forces of a country, 
and licenses may not be issued under the [Export Administration 
Act of 1979] Export Administration Act of 1996 for the export 
of crime control and detection instruments and equipment to a 
country, the government of which engages in a consistent 
pattern of gross violations of internationally recognized human 
rights unless the President certifies in writing to the Speaker 
of the House of Representatives and the chairman of the 
Committee on Foreign Relations of the Senate and the chairman 
of the Committee on Banking, Housing, and Urban Affairs of the 
Senate (when licenses are to be issued pursuant to the Export 
Administration [Act of 1979)] Act of 1996), that extraordinary 
circumstances exist warranting provision of such assistance and 
issuance of such licenses. Assistance may not be provided under 
chapter 5 of this part to a country the government of which 
engages in a consistent pattern of gross violations of 
internationally recognized human rights unless the President 
certifies in writing to the Speaker of the House of 
Representatives and the chairman of the Committee on Foreign 
Relations of the Senate that extraordinary circumstances exist 
warranting provision of such assistance.
          * * * * * * *
                              ----------                              


  SECTION 140 OF THE FOREIGN RELATIONS AUTHORIZATION ACT, FOR FISCAL 
                          YEARS 1988 AND 1989

SEC. 140. ANNUAL COUNTRY REPORTS ON TERRORISM.

  (a) Requirement of Annual Country Reports on Terrorism.--The 
Secretary of State shall transmit to the Speaker of the House 
of Representatives and the Committee on Foreign Relations of 
the Senate, by April 30 of each year, a full and complete 
report providing--
          (1) detailed assessments with respect to each foreign 
        country--
                  (A) in which acts of international terrorism 
                occurred which were, in the opinion of the 
                Secretary, of major significance;
                  (B) about which the Congress was notified 
                during the preceding five years pursuant to 
                section 6(j) of the Export Administration Act 
                of 1979 or section 106(i) of the Export 
                Administration Act of 1996; and
                  (C) which the Secretary determines should be 
                the subject of such report; and
          (2) all relevant information about the activities 
        during the preceding year of any terrorist group, and 
        any umbrella group under which such terrorist group 
        falls, known to be responsible for the kidnapping or 
        death of an American citizen during the preceding five 
        years, any terrorist group known to be financed by 
        countries about which Congress was notified during the 
        preceding year pursuant to section [6(j) of the Export 
        Administration Act of 1979] 106(i) of the Export 
        Administration Act of 1996, and any other known 
        international terrorist group which the Secretary 
        determines should be the subject of such report.
          * * * * * * *
                              ----------                              


             STATE DEPARTMENT BASIC AUTHORITIES ACT OF 1956

          * * * * * * *

                  TITLE I--BASIC AUTHORITIES GENERALLY

          * * * * * * *

        authority to control certain terrorism-related services

  Sec. 40. (a) * * *
          * * * * * * *
  (e) Definitions.--
          (1) Designated foreign government.--As used in this 
        section, the term ``designated foreign government'' 
        means a foreign government that the Secretary of State 
        has determined, for purposes of section [6(j)(1) of the 
        Export Administration Act of 1979] 106(i)(1) of the 
        Export Administration Act of 1996, has repeatedly 
        provided support for acts of international terrorism.
          * * * * * * *

  TITLE II--AUTHORITIES RELATING TO THE REGULATION OF FOREIGN MISSIONS

          * * * * * * *

                      property of foreign missions

  Sec. 205. (a) * * *
          * * * * * * *
  (d)(1) * * *
          * * * * * * *
  (4) For the purposes of this subsection, the term ``foreign 
country'' means--
          (A) any country listed as a Communist country in 
        section 620(f) of the Foreign Assistance Act of 1961;
          (B) any country determined by the Secretary of State, 
        for purposes of section [6(j) of the Export 
        Administration Act of 1979] 106(i) of the Export 
        Administration Act of 1996, to be a country which has 
        repeatedly provided support for acts of international 
        terrorism; and
          (C) any other country which engages in intelligence 
        activities in the United States which are adverse to 
        the national security interests of the United States.
          * * * * * * *
                              ----------                              


 SECTION 110 OF THE INTERNATIONAL SECURITY AND DEVELOPMENT COOPERATION 
                              ACT OF 1980

           exportation of uranium depleted in the isotope 235

  Sec. 110. Upon a finding that an export of uranium depleted 
in the isotope 235 is incorporated in defense articles or 
commodities solely to take advantage of high density or 
pyrophoric characteristics unrelated to its radioactivity, such 
exports shall be exempt from the provisions of the Atomic 
Energy Act of 1954 and of the Nuclear Non-Proliferation Act of 
1978 when such exports are subject to the controls established 
under the Arms Export Control Act or the Export Administration 
[Act of 1979] Act of 1996.
                              ----------                              


 SECTION 491 OF THE FOREST RESOURCES CONSERVATION AND SHORTAGE RELIEF 
                              ACT OF 1990

SEC. 491. RESTRICTION ON EXPORTS OF UNPROCESSED TIMBER FROM STATE AND 
                    OTHER PUBLIC LANDS.

  (a) * * *
          * * * * * * *
  [(f) Western Red Cedar.--Nothing in this section shall be 
construed to supersede section 7(i) of the Export 
Administration Act of 1979 (50 U.S.C. App. 2406(i)).]
          * * * * * * *
                              ----------                              


                 THE EXPORT ADMINISTRATION ACT OF 1979

    AN ACT To provide authority to regulate exports, to improve the 
efficiency of export regulation, and to minimize interference with the 
                     ability to engage in commerce.

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

                              [short title

  [Section 1. This Act may be cited as the ``Export 
Administration Act of 1979''.

                               [findings

  [Sec. 2. The Congress makes the following findings:
          [(1) The ability of the United States citizens to 
        engage in international commerce is a fundamental 
        concern of United States policy.
          [(2) Exports contribute significantly to the economic 
        well-being of the United States and the stability of 
        the world economy by increasing employment and 
        production in the United States, and by earning foreign 
        exchange, thereby contributing favorably to the trade 
        balance. The restriction of exports from the United 
        States can have serious adverse effects on the balance 
        of payments and on domestic employment, particularly 
        when restrictions applied by the United States are more 
        extensive than those imposed by other countries.
          [(3) It is important for the national interest of the 
        United States that both the private sector and the 
        Federal Government place a high priority on exports, 
        consistent with the economic, security, and foreign 
        policy objectives of the United States.
          [(4) The availability of certain materials at home 
        and abroad varies so that the quantity and composition 
        of United States exports and their distribution among 
        importing countries may affect the welfare of the 
        domestic economy and may have an important bearing upon 
        fulfillment of the foreign policy of the United States.
          [(5) Exports of goods or technology without regard to 
        whether they make a significant contribution to the 
        military potential of individual countries or 
        combinations of countries may adversely affect the 
        national security of the United States.
          [(6) Uncertainty of export control policy can inhibit 
        the efforts of United States business and work to the 
        detriment of the overall attempt to improve the trade 
        balance of the United States.
          [(7) Unreasonable restrictions on access to world 
        supplies can cause worldwide political and economic 
        instability, interfere with free international trade, 
        and retard the growth and development of nations.
          [(8) It is important that the administration of 
        export controls imposed for national security purposes 
        give special emphasis to the need to control exports of 
        technology (and goods which contribute significantly to 
        the transfer of such technology) which could make a 
        significant contribution to the military potential of 
        any country or combination of countries which would be 
        detrimental to the national security of the United 
        States.
          [(9) 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.
          [(10) It is important that the administration of 
        export controls imposed for foreign policy purposes 
        give special emphasis to the need to control exports of 
        goods and substances hazardous to the public health and 
        the environment which are banned or severely restricted 
        for use in the United States, and which, if exported, 
        could affect the international reputation of the United 
        States as a responsible trading partner.
          [(11) Availability to controlled countries of goods 
        and technology from foreign sources is a fundamental 
        concern of the United States and should be eliminated 
        through negotiations and other appropriate means 
        whenever possible.
          [(12) Excessive dependence of the United States, its 
        allies, or countries sharing common strategic 
        objectives with the United States, on energy and other 
        critical resources from potential adversaries can be 
        harmful to the mutual and individual security of all 
        those countries.

                         [declaration of policy

  [Sec. 3. The Congress makes the following declarations:
          [(1) It is the policy of the United States to 
        minimize uncertainties in export control policy and to 
        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.
          [(2) It is the policy of the United States to use 
        export controls only after full consideration of the 
        impact on the economy of the United States and only to 
        the extent necessary--
                  [(A) to restrict the export of goods and 
                technology which would make a significant 
                contribution to the military potential of any 
                other country or combination of countries which 
                would prove detrimental to the national 
                security of the United States;
                  [(B) to restrict the export of goods and 
                technology where necessary to further 
                significantly the foreign policy of the United 
                States or to fulfill its declared international 
                obligations; and
                  [(C) to restrict the export of goods where 
                necessary to protect the domestic economy from 
                the excessive drain of scarce materials and to 
                reduce the serious inflationary impact of 
                foreign demand.
          [(3) It is the policy of the United States (A) to 
        apply any necessary controls to the maximum extent 
        possible in cooperation with all nations, and (B) to 
        encourage observance of a uniform export control policy 
        by all nations with which the United States has defense 
        treaty commitments or common strategic objectives.
          [(4) It is the policy of the United States to use its 
        economic resources and trade potential to further the 
        sound growth and stability of its economy as well as to 
        further its national security and foreign policy 
        objectives.
          [(5) It is the policy of the United States--
                  [(A) to oppose restrictive trade practices or 
                boycotts fostered or imposed by foreign 
                countries against other countries friendly to 
                the United States or against any United States 
                person;
                  [(B) to encourage and, in specified cases, 
                require United States persons engaged in the 
                export of goods or technology or other 
                information to refuse to take actions, 
                including furnishing information or entering 
                into or implementing agreements, which have the 
                effect of furthering or supporting the 
                restrictive trade practices or boycotts 
                fostered or imposed by any foreign country 
                against a country friendly to the United States 
                or against any United States person; and
                  [(C) to foster international cooperation and 
                the development of international rules and 
                institutions to assure reasonable access to 
                world supplies.
          [(6) It is the policy of the United States that the 
        desirability of subjecting, or continuing to subject, 
        particular goods or technology or other information to 
        United States export controls should be subjected to 
        review by and consultation with representatives of 
        appropriate United States Government agencies and 
        private industry.
          [(7) It is the policy of the United States to use 
        export controls, including license fees, to secure the 
        removal by foreign countries of restrictions on access 
        to supplies where such restrictions have or may have a 
        serious domestic inflationary impact, have caused or 
        may cause a serious domestic shortage, or have been 
        imposed for purposes of influencing the foreign policy 
        of the United States. In effecting this policy, the 
        President shall make reasonable and prompt efforts to 
        secure the removal or reduction of such restrictions, 
        policies, or actions through international cooperation 
        and agreement before imposing export controls. No 
        action taken in fulfillment of the policy set forth in 
        this paragraph shall apply to the export of medicine or 
        medical supplies.
          [(8) It is the policy of the United States to use 
        export controls 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 
        achieve this objective, the President shall make 
        reasonable and prompt efforts to secure the removal or 
        reduction of such assistance to international 
        terrorists through international cooperation and 
        agreement before imposing export controls.
          [(9) It is the policy of the United States to 
        cooperate with other countries with which the United 
        States has defense treaty commitments or common 
        strategic objectives in restricting the export of goods 
        and technology which would make a significant 
        contribution to the military potential of any country 
        or combination of countries which would prove 
        detrimental to the security of the United States and of 
        those countries with which the United States has 
        defense treaty commitments, or common strategic 
        objectives, and to encourage other friendly countries 
        to cooperate in restricting the sale of goods and 
        technology that can harm the security of the United 
        States.
          [(10) It is the policy of the United States that 
        export trade by United States citizens be given a high 
        priority and not be controlled except when such 
        controls (A) are necessary to further fundamental 
        national security, foreign policy, or short supply 
        objectives, (B) will clearly further such objectives, 
        and (C) are administered consistent with basic 
        standards of due process.
          [(11) It is the policy of the United States to 
        minimize restrictions on the export of agricultural 
        commodities and products.
          [(12) It is the policy of the United States to 
        sustain vigorous scientific enterprise. To do so 
        involves sustaining the ability of scientists and other 
        scholars freely to communicate research findings, in 
        accordance with applicable provisions of law, by means 
        of publication, teaching, conferences, and other forms 
        of scholarly exchange.
          [(13) It is the policy of the United States to 
        control the export of goods and substances banned or 
        severely restricted for use in the United States in 
        order to foster public health and safety and to prevent 
        injury to the foreign policy of the United States as 
        well as to the credibility of the United States as a 
        responsible trading partner.
          [(14) It is the policy of the United States to 
        cooperate with countries which are allies of the United 
        States and countries which share common strategic 
        objectives with the United States in minimizing 
        dependence on imports of energy and other critial 
        resources from potential adversaries and in developing 
        alternative supplies of such resources in order to 
        minimize strategic threats posed by excessive hard 
        currency earnings derived from such resource exports by 
        countries with policies adverse to the security 
        interests of the United States.

                          [general provisions

  [Sec. 4. (a) Types of Licenses.--Under such conditions as may 
be imposed by the Secretary which are consistent with the 
provisions of this Act, the Secretary may require any of the 
following types of export licenses:
          [(1) A validated license, authorizing a specific 
        export, issued pursuant to an application by the 
        exporter.
          [(2) Validated licenses authorizing multiple exports, 
        issued pursuant to an application by the exporter, in 
        lieu of an individual validated license for each such 
        export, including, but not limited to, the following:
                  [(A) A distribution license, authorizing 
                exports of goods to approved distributors or 
                users of the goods in countries other than 
                controlled countries, except that the Secretary 
                may establish a type of distribution license 
                appropriate for consignees in the People's 
                Republic of China. The Secretary shall grant 
                the distribution license primarily on the basis 
                of the reliability of the applicant and foreign 
                consignees with respect to the prevention of 
                diversion of goods to controlled countries. The 
                Secretary shall have the responsibility of 
                determining, with the assistance of all 
                appropriate agencies, the reliability of 
                applicants and their immediate consignees. The 
                Secretary's determination shall be based on 
                appropriate investigations of each applicant 
                and periodic reviews of licensees and their 
                compliance with the terms of licenses issued 
                under this Act. Factors such as the applicant's 
                products or volume of business, or the 
                consignees' geographic location, sales 
                distribution area, or degree of foreign 
                ownership, which may be relevant with respect 
                to individual cases, shall not be determinative 
                in creating categories or general criteria for 
                the denial of applications or withdrawal of a 
                distribution license.
                  [(B) A comprehensive operations license, 
                authorizing exports and reexports of technology 
                and related goods, including items from the 
                list of militarily critical technologies 
                developed pursuant to section 5(d) of this Act 
                which are included on the control list in 
                accordance with that section, from a domestic 
                concern to and among its foreign subsidiaries, 
                affiliates, joint venturers, and licensees that 
                have long-term, contractually defined relations 
                with the exporter, are located in countries 
                other than controlled countries (except the 
                People's Republic of China), and are approved 
                by the Secretary. The Secretary shall grant the 
                license to manufacturing, laboratory, or 
                related operations on the basis of approval of 
                the exporter's systems of control, including 
                internal proprietary controls, applicable to 
                the technology and related goods to be exported 
                rather than approval of individual export 
                transactions. The Secretary and the 
                Commissioner of Customs, consistent with their 
                authorities under section 12(a) of this Act, 
                and with the assistance of all appropriate 
                agencies, shall periodically, but not less 
                frequently than annually, perform audits of 
                licensing procedures under this subparagraph in 
                order to assure the integrity and effectiveness 
                of those procedures.
                  [(C) A project license, authorizing exports 
                of goods or technology for a specified 
                activity.
                  [(D) A service supply license, authorizing 
                exports of spare or replacement parts for goods 
                previously exported.
          [(3) A general license, authorizing exports, without 
        application by the exporter.
          [(4) Such other licenses as may assist in the 
        effective and efficient implementation of this Act.
  [(b) Control List.--The Secretary shall establish and 
maintain a list (hereinafter in this Act referred to as the 
``control list'') stating license requirements (other than for 
general licenses) for exports of goods and technology under 
this Act.
  [(c) Foreign Availability.--In accordance with the provisions 
of this Act, the President shall not impose export controls for 
foreign policy or national security purposes on the export from 
the United Staes of goods or technology which he determines are 
available without restriction from sources outside the United 
States in sufficient quantities and comparable in quality to 
those produced in the United States, so as to render the 
controls ineffective in achieving their purposes unless the 
President determines that adequate evidence has been presented 
to him demonstrating that the absence of such controls would 
prove detrimental to the foreign policy or national security of 
the United States. In complying with the provisions of this 
subsection, the President shall give strong emphasis to 
bilateral or multilateral negotiations to eliminate foreign 
availability. The Secretary and the Secretary of Defense shall 
cooperate in gathering information relating to foreign 
availability, including the establishment and maintenance of a 
jointly operated computer system.
  [(d) Right of Export.--No authority or permission to export 
may be required under this Act, or under regulations issued 
under this Act, except to carry out the policies set forth in 
section 3 of this Act.
  [(e) Delegation of Authority.--The President may delegate the 
power, authority, and discretion conferred upon him by this Act 
to such departments, agencies, or officials of the Government 
as he may consider appropriate, except that no authority under 
this Act 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, and discretion to overrule or modify any 
recommendation or decision made by the Secretary, the Secretary 
of Defense, or the Secretary of State pursuant to the 
provisions of this Act.
  [(f) 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 Act with a view to encouraging trade. 
The Secretary shall meet 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 goods and technology.
  [(g) Fees.--No fee may be charged in connection with the 
submission or processing of an export license application.

                      [national security controls

  [Sec. 5. (a) Authority.--(1) In order to carry out the policy 
set forth in section 3(2)(A) of this Act, the President may, in 
accordance with the provisions of this section, prohibit or 
curtail the export of any goods or technology subject to the 
jurisdiction of the United States or exported by any person 
subject to the jurisdiction of the United States. The authority 
contained in this subsection includes the authority to prohibit 
or curtail the transfer of goods or technology within the 
United States to embassies and affiliates of controlled 
countries. For purposes of the preceding sentence, the term 
``affiliates'' includes both governmental entities and 
commercial entities that are controlled in fact by controlled 
countries. The authority contained in this subsection shall be 
exercised by the Secretary, in consultation with the Secretary 
of Defense, and such other departments and agencies as the 
Secretary considers appropriate, and shall be implemented by 
means of export licenses described in section 4(a) of this Act.
  [(2) Whenever the Secretary makes any revision with respect 
to any goods or technology, or with respect to the countries or 
destinations, affected by export controls imposed under this 
section, the Secretary shall publish in the Federal Register a 
notice of such revision and shall specify in such notice that 
the revision relates to controls imposed under the authority 
contained in this section.
  [(3) In issuing regulations to carry out this section, 
particular attention shall be given to the difficulty of 
devising effective safeguards to prevent a country that poses a 
threat to the security of the United States from diverting 
critical technologies to military use, the difficulty of 
devising effective safeguards to protect critical goods, and 
the need to take the effective measures to prevent the reexport 
of critical technologies from other countries to countries that 
pose a threat to the security of the United States.
  [(4)(A) No authority or permission may be required under this 
section to reexport any goods or technology subject to the 
jurisdiction of the United States to any country which 
maintains export controls on such goods or technology 
cooperatively with the United States pursuant to the agreement 
of the group known as the Coordinating Committee, or pursuant 
to an agreement described in subsection (k) of this section. 
The Secretary may require any person reexporting any goods or 
technology under this subparagraph to notify the Secretary of 
such reexports.
  [(B) Notwithstanding subparagraph (A), the Secretary may 
require authority or permission to reexport the following:
          [(i) supercomputers;
          [(ii) goods or technology for sensitive nuclear uses 
        (as defined by the Secretary);
          [(iii) devices for surreptitious interception of wire 
        or oral communications; and
          [(iv) goods or technology intended for such end users 
        as the Secretary may specify by regulation.
  [(5)(A) Except as provided in subparagraph (B), no authority 
or permission may be required under this section to reexport 
any goods or technology subject to the jurisdiction of the 
United States from any country when the goods or technology to 
be reexported are incorporated in another good and--
          [(i) the value of the controlled United States 
        content of that other good is 25 percent or less of the 
        total value of the good; or
          [(ii) the export of the goods or technology to a 
        controlled country would require only notification of 
        the participating governments of the Coordinating 
        Committee.
For purposes of this paragraph, the ``controlled United States 
content'' of a good means those goods or technology subject to 
the jurisdiction of the United States which are incorporated in 
the good, if the export of those goods or technology from the 
United States to a country, at the time that the good is 
exported to that country, would require a validated license.
  [(B) The Secretary may by regulation provide that 
subparagraph (A) does not apply to the reexport of a 
supercomputer which contains goods or technology subject to the 
jurisdiction of the United States.
  [(6) Not later than 90 days after the date of the enactment 
of this paragraph, the Secretary shall issue regulations to 
carry out paragraphs (4) and (5). Such regulations shall define 
the term ``supercomputer'' for purposes of those paragraphs.
  [(b) Policy Toward Individual Countries.--(1) In 
administering export controls for national security purposes 
under this section, the President shall establish as a list of 
controlled countries those countries set forth in section 
620(f) of the Foreign Assistance Act of 1961, except that the 
President may add any country to or remove any country from 
such list of controlled countries if he determines that the 
export of goods or technology to such country would or would 
not (as the case may be) make a significant contribution to the 
military potential of such country or a combination of 
countries which would prove detrimental to the national 
security of the United States. In determining whether a country 
is added to or removed from the list of controlled countries, 
the President shall take into account--
          [(A) the extent to which the country's policies are 
        adverse to the national security interests of the 
        United States;
          [(B) the country's Communist or non-Communist status;
          [(C) the present and potential relationship of the 
        country with the United States;
          [(D) the present and potential relationship of the 
        country with countries friendly or hostile to the 
        United States;
          [(E) the country's nuclear weapons capability and the 
        country's compliance record with respect to 
        multilateral nuclear weapons agreements to which the 
        United States is a party; and
          [(F) such other factors as the President considers 
        appropriate.
Nothing in the preceding sentence shall be interpreted to limit 
the authority of the President provided in this Act to prohibit 
or curtail the export of any goods or technology to any country 
to which exports are controlled for national security purposes 
other than countries on the list of controlled countries 
specified in this paragraph. The President shall review not 
less frequently than every three years in the case of controls 
maintained cooperatively with other nations, and annually in 
the case of all other controls, United States policy toward 
individual countries to determine whether such policy is 
appropriate in light of the factors set forth in this 
paragraph.
  [(2)(A) Except as provided in subparagraph (B), no authority 
or permission may be required under this section to export 
goods or technology to a country which maintains export 
controls on such goods or technology cooperatively with the 
United States pursuant to the agreement of the group known as 
the Coordinating Committee or pursuant to an agreement 
described in subsection (k) of this section, if the export of 
such goods or technology to the People's Republic of China or a 
controlled country on the date of the enactment of the Export 
Enhancement Act of 1988 would require only notification of the 
participating governments of the Coordinating Committee.
  [(B)(i) The Secretary may require a license for the export of 
goods or technology described in subparagraph (A) to such end 
users as the Secretary may specify by regulation.
  [(ii) The Secretary may require any person exporting goods or 
technology under this paragraph to notify the Secretary of 
those exports.
  [(C) The Secretary shall, within 3 months after the date of 
the enactment of the Export Enhancement Act of 1988, determine 
which countries referred to in subparagraph (A) are 
implementing an effective export control system consistent with 
principles agreed to in the Coordinating Committee, including 
the following:
          [(i) national laws providing appropriate civil and 
        criminal penalties and statutes of limitations 
        sufficient to deter potential violations;
          [(ii) 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;
          [(iii) an enforcement mechanism that provides 
        authority for trained enforcement officers to 
        investigate and prevent illegal exports;
          [(iv) a system of export control documentation to 
        verify the movement of goods and technology; and
          [(v) procedures for the coordination and exchange of 
        information concerning violations of the agreement of 
        the Coordinating Committee.
The Secretary shall, at least once each year, review the 
determinations made under the preceding sentence with respect 
to all countries referred to in subparagraph (A). The Secretary 
may, as appropriate, add countries to, or remove countries 
from, the list of countries that are implementing an effective 
export control system in accordance with this subparagraph. No 
authority or permission to export may be required for the 
export of goods or technology to a country on such list.
  [(3)(A) No authority or permission may be required under this 
section to export to any country, other than a controlled 
country, any goods or technology if the export of the goods or 
technology to controlled countries would require only 
notification of the participating governments of the 
Coordinating Committee.
  [(B) The Secretary may require any person exporting any goods 
or technology under subparagraph (A) to notify the Secretary of 
those exports.
  [(c) Control List.--(1) The Secretary shall establish and 
maintain, as part of the control list, a list of all goods and 
technology subject to export controls under this section. Such 
goods and technology shall be clearly identified as being 
subject to controls under this section.
  [(2) The Secretary of Defense and other appropriate 
departments and agencies shall identify goods and technology 
for inclusion on the list referred to in paragraph (1). Those 
items which the Secretary and the Secretary of Defense concur 
shall be subject to export controls under this section shall 
comprise such list. If the Secretary and the Secretary of 
Defense are unable to concur on such items, as determined by 
the Secretary, the Secretary of Defense may, within 20 days 
after receiving notification of the Secretary's determination, 
refer the matter to the President for resolution. The Secretary 
of Defense shall notify the Secretary of any such referral. The 
President shall, not later than 20 days after such referral, 
notify the Secretary of his determination with respect to the 
inclusion of such items on the list. Failure of the Secretary 
of Defense to notify the President or the Secretary, or failure 
of the President to notify the Secretary, in accordance with 
this paragraph, shall be deemed by the Secretary to constitute 
concurrence in the implementation of the actions proposed by 
the Secretary regarding the inclusion of such items on the 
list.
  [(3) The Secretary shall conduct partial reviews of the list 
established pursuant to this subsection at least once each 
calendar quarter in order to carry out the policy set forth in 
section 3(2)(A) of this Act and the provisions of this section, 
and shall promptly make such revisions of the list as may be 
necessary after each such review. Before beginning each 
quarterly review, the Secretary shall publish notice of that 
review in the Federal Register. The Secretary shall provide a 
30-day period during each review for comment and the submission 
of data, with or without oral presentation, by interested 
Government agencies and other affected or potentially affected 
parties. After consultation with appropriate Government 
agencies, the Secretary shall make a determination of any 
revisions in the list within 30 days after the end of the 
review period. The concurrence or approval of any other 
department or agency is not required before any such revision 
is made. The Secretary shall publish in the Federal Register 
any revisions in the list, with an explanation of the reasons 
for the revisions. The Secretary shall use the data developed 
from each review in formulating United States proposals 
relating to multilateral export controls in the group known as 
the Coordinating Committee. The Secretary shall further assess, 
as part of each review, the availability from sources outside 
the United States of goods and technology comparable to those 
subject to export controls imposed under this section. All 
goods and technology on the list shall be reviewed at least 
once each year. The provisions of this paragraph apply to 
revisions of the list which consist of removing items from the 
list or making changes in categories of, or other 
specifications in, items on the list.
  [(4) The appropriate technical advisory committee appointed 
under subsection (h) of this section shall be consulted by the 
Secretary with respect to changes, pursuant to paragraph (2) or 
(3), in the list established pursuant to this subsection, and 
such technical advisory committee may submit recommendations to 
the Secretary with respect to such changes. The Secretary shall 
consider the recommendations of the technical advisory 
committee and shall inform the committee of the disposition of 
its recommendations.
  [(5)(A) Not later than 6 months after the date of the 
enactment of this paragraph, the following shall no longer be 
subject to export controls under this section:
          [(i) All goods or technology the export of which to 
        controlled countries on the date of the enactment of 
        the Export Enhancement Act of 1988 would require only 
        notification of the participating governments of the 
        Coordinating Committee, except for those goods or 
        technology on which the Coordinating Committee agrees 
        to maintain such notification requirement.
          [(ii) All medical instruments and equipment, subject 
        to the provisions of subsection (m) of this section.
  [(B) The Secretary shall submit to the Congress annually a 
report setting forth the goods and technology from which export 
controls have been removed under this paragraph.''.
  [(6)(A) Notwithstanding subsection (f) or (h)(6) of this 
section, any export control imposed under this section which is 
maintained unilaterally by the United States shall expire 6 
months after the date of the enactment of this paragraph, or 6 
months after the export control is imposed, whichever date is 
later, except that--
          [(i) any such export controls on those goods or 
        technology for which a determination of the Secretary 
        that there is no foreign availability has been made 
        under subsection (f) or (h)(6) of this section before 
        the end of the applicable 6-month period and is in 
        effect may be renewed for periods of not more than 6 
        months each, and
          [(ii) any such export controls on those goods or 
        technology with respect to which the President, by the 
        end of the applicable 6-month period, is actively 
        pursuing negotiations with other countries to achieve 
        multilateral export controls on those goods or 
        technology may be renewed for 2 periods of not more 
        than 6 months each.
  [(B) Export controls on goods or technology described in 
clause (i) or (ii) of subparagraph (A) may be renewed only if, 
before each renewal, the President submits to the Congress a 
report setting forth all the controls being renewed and stating 
the specific reasons for such renewal.
  [(7) Notwithstanding any other provision of this subsection, 
after 1 year has elapsed since the last review in the Federal 
Register on any item within a category on the control list the 
export of which to the People's Republic of China would require 
only notification of the members of the group known as the 
Coordinating Committee, an export license applicant may file an 
allegation with the Secretary that such item has not been so 
reviewed within such 1-year period. Within 90 days after 
receipt of such allegation, the Secretary--
          [(A) shall determine the truth of the allegation;
          [(B) shall, if the allegation is confirmed, commence 
        and complete the review of the item; and
          [(C) shall, pursuant to such review, submit a finding 
        for publication in the Federal Register.
In such finding, the Secretary shall identify those goods or 
technology which shall remain on the control list and those 
goods or technology which shall be removed from the control 
list. If such review and submission for publication are not 
completed within that 90-day period, the goods or technology 
encompassed by such item shall immediately be removed from the 
control list.
  [(d) Militarily Critical Technologies.--(1) The Secretary, in 
consultation with the Secretary of Defense, shall review and 
revise the list established pursuant to subsection (c), as 
prescribed in paragraph (3) of such subsection, for the purpose 
of insuring that export controls imposed under this section 
cover and (to the maximum extent consistent with the purposes 
of this Act) are limited to militarily critical goods and 
technologies and the mechanisms through which such goods and 
technologies may be effectively transferred.
  [(2) The Secretary of Defense shall bear primary 
responsibility for developing a list of militarily critical 
technologies. In developing such list, primary emphasis shall 
be given to--
          [(A) arrays of design and manufacturing know-how,
          [(B) keystone manufacturing, inspection, and test 
        equipment,
          [(C) goods accompanied by sophisticated operation, 
        application, or maintenance know-how; and
          [(D) keystone equipment with would reveal or give 
        insight into the design and manufacture of a United 
        States military system,
which are not possessed by, or available in fact from sources 
outside the United States to, controlled countries and which, 
if exported, would permit a significant advance in a military 
system of any such country.
  [(3) The list referred to in paragraph (2) shall be 
sufficiently specific to guide the determinations of any 
official exercising export licensing responsibilities under 
this Act.
  [(4) The Secretary and the Secretary of Defense shall 
integrate items on the list of militarily critical technologies 
into the control list in accordance with the requirements of 
subsection (c) of this section. The integration of items on the 
list of militarily critical technologies into the control list 
shall proceed with all deliberate speed. Any disagreement 
between the Secretary and the Secretary of Defense regarding 
the integration of an item on the list of militarily critical 
technologies into the control list shall be resolved by the 
President. Except in the case of a good or technology for which 
a validated license may be required under subsection (f)(4) or 
(h)(6) of this section, a good or technology shall be included 
on the control list only if the Secretary finds that controlled 
countries do not possess that good or technology, or a 
functionally equivalent good or technology, and the good or 
technology or functionally equivalent good or technology, is 
not available in fact to a controlled country from sources 
outside the United States in sufficient quantity and of 
comparable quality so that the requirement of a validated 
license for the export of such good or technology is or would 
be ineffective in achieving the purpose set forth in subsection 
(a) of this section. The Secretary and the Secretary of Defense 
shall jointly submit a report to the Congress, not later than 1 
year after the date of the enactment of the Export 
Administration Amendments Act of 1985, on actions taken to 
carry out this paragraph. For the purposes of this paragraph, 
assessment of whether a good or technology is functionally 
equivalent shall include consideration of the factors described 
in subsection (f)(3) of this section.
  [(5) The Secretary of Defense shall establish a procedure for 
reviewing the goods and technology on the list of militarily 
critical technologies on an ongoing basis for the purpose of 
removing from the list of militarily critical technologies any 
goods or technology that are no longer militarily critical. The 
Secretary of Defense may add to the list of militarily critical 
technologies and good or technology that the Secretary of 
Defense determines is militarily critical, consistent with the 
provisions of paragraph (2) of this subsection. If the 
Secretary and the Secretary of Defense disagree as to whether 
any change in the list of militarily critical technologies by 
the addition or removal of a good or technology should also be 
made in the control list, consistent with the provisions of the 
fourth sentence of paragraph (4) of this subsection, the 
President shall resolve the disagreement.
  [(6) The establishment of adequate export controls for 
militarily critical technology and keystone equipment shall be 
accompanied by suitable reductions in the controls on the 
products of that technology and equipment.
  [(7) The Secretary of Defense shall, not later than 1 year 
after the date of the enactment of the Export Administration 
Amendments Act of 1985, report to the Congress on efforts by 
the Department of Defense to assess the impact that the 
transfer of goods or technology on the list of militarily 
critical technologies to controlled countries has had or will 
have on the military capabilities of those countries.
  [(e) Export Licenses.--(1) The Congress finds that the 
effectiveness and efficiency of the process of making export 
licensing determinations under this section is severely 
hampered by the large volume of validated export license 
applications required to be submitted under this Act. 
Accordingly, it is the intent of Congress in this subsection to 
encourage the use of the multiple validated export licenses 
described in section 4(a)(2) of this Act in lieu of individual 
validated licenses.
  [(2) To the maximum extent practicable, consistent with the 
national security of the United States, the Secretary shall 
require a validated license under this section for the export 
of goods or technology only if--
          [(A) the export of such goods or technology is 
        restricted pursuant to a multilateral agreement, formal 
        or informal, to which the United States is a party and, 
        under the terms of such multilateral agreement, such 
        export requires the specific approval of the parties to 
        such multilateral agreement;
          [(B) with respect to such goods or technology, other 
        nations do not possess capabilities comparable to those 
        possessed by the United States; or
          [(C) the United States is seeking the agreement of 
        other suppliers to apply comparable controls to such 
        goods or technology and, in the judgment of the 
        Secretary, United States export controls on such goods 
        or technology, by means of such license, are necessary 
        pending the conclusion of such agreement.
  [(3) The Secretary, subject to the provisions of subsection 
(l) of this section, shall not require an individual validated 
export license for replacement parts which are exported to 
replace on a one-for-one basis parts that were in a good that 
has been lawfully exported from the United States.
  [(4) The Secretary shall periodically review the procedures 
with respect to the multiple validated export licenses, taking 
appropriate action to increase their utilization by reducing 
qualification requirements or lowering minimum thresholds, to 
combine procedures which overlap, and to eliminate those 
procedures which appear to be of marginal utility.
  [(5) The export of goods subject to export controls under 
this section shall be eligible, at the discretion of the 
Secretary, for a distribution license and other licenses 
authorizing multiple exports of goods, in accordance with 
section 4(a)(2) of this Act. The export of technology and 
related goods subject to export controls under this section 
shall be eligible for a comprehensive operations license in 
accordance with section 4(a)(2)(B) of this Act.
  [(6) Any application for a license for the export to the 
People's Republic of China of any good on which export controls 
are in effect under this section, without regard to the 
technical specifications of the good, for the purpose of 
demonstration or exhibition at a trade show shall carry a 
presumption of approval if--
          [(A) the United States exporter retains title to the 
        good during the entire period in which the good is in 
        the People's Republic of China; and
          [(B) the exporter removes the good from the People's 
        Republic of China no later than at the conclusion of 
        the trade show.
  [(f) Foreign Availability.--
          [(1) Foreign availability to controlled countries.--
        (A) The Secretary, in consultation with the Secretary 
        of Defense and other appropriate Government agencies 
        and with appropriate technical advisory committees 
        established pursuant to subsection (h) of this section, 
        shall review, on a continuing basis, the availability 
        to controlled countries, from sources outside the 
        United States, including countries which participate 
        with the United States in multilateral export controls, 
        of any goods or technology the export of which requires 
        a validated license under this section. In any case in 
        which the Secretary determines, in accordance with 
        procedures and criteria which the Secretary shall by 
        regulation establish, that any such goods or technology 
        are available in fact to controlled countries from such 
        sources in sufficient quantity and of comparable 
        quality so that the requirement of a validated license 
        for the export of such goods or technology is or would 
        be ineffective in achieving the purpose set forth in 
        subsection (a) of this section, the Secretary may not, 
        after the determination is made, require a validated 
        license for the export of such goods or technology 
        during the period of such foreign availability, unless 
        the President determines that the absence of export 
        controls under this section on the goods or technology 
        would prove detrimental to the national security of the 
        United States. In any case in which the President 
        determines under this paragraph that export controls 
        under this section must be maintained notwithstanding 
        foreign availability, the Secretary shall publish that 
        determination, together with a concise statement of its 
        basis and the estimated economic impact of the 
        decision.
          [(B) The Secretary shall approve any application for 
        a validated license which is required under this 
        section for the export of any goods or technology to a 
        controlled country and which meets all other 
        requirements for such an application, if the Secretary 
        determines that such goods or technology will, if the 
        license is denied, be available in fact to such country 
        from sources outside the United States, including 
        countries which participate with the United States in 
        multilateral export controls, in sufficient quantity 
        and of comparable quality so that denial of the license 
        would be ineffective in achieving the purpose set forth 
        in subsection (a) of this section, unless the President 
        determines that approving the license application would 
        prove detrimental to the national security of the 
        United States. In any case in which the Secretary makes 
        a determination of foreign availability under this 
        subparagraph with respect to any goods or technology, 
        the Secretary shall determine whether a determination 
        of foreign availability under subparagraph (A) with 
        respect to such goods or technology is warranted.
          [(2) Foreign availability to other than controlled 
        countries.--(A) The Secretary shall review, on a 
        continuing basis, the availability to countries other 
        than controlled countries, from sources outside the 
        United States, of any goods or technology the export of 
        which requires a validated license under this section. 
        If the Secretary determines, in accordance with 
        procedures which the Secretary shall establish, that 
        any goods or technology in sufficient quantity and of 
        comparable quality are available in fact from sources 
        outside the United States (other than availability 
        under license from a country which maintains export 
        controls on such goods or technology cooperatively with 
        the United States pursuant to the agreement of the 
        group known as the Coordinating Committee or pursuant 
        to an agreement described in subsection (k) of this 
        section), the Secretary may not, after the 
        determination is made and during the period of such 
        foreign availability, require a validated license for 
        the export of such goods or technology to any country 
        (other than a controlled country) to which the country 
        from which the goods or technology is available does 
        not place controls on the export of such goods or 
        technology. The requirement with respect to a validated 
        license in the preceding sentence shall not apply if 
        the President determines that the absence of export 
        controls under this section on the goods or technology 
        would prove detrimental to the national security of the 
        United States. In any case in which the President 
        determines under this paragraph that export controls 
        under this section must be maintained notwithstanding 
        foreign availability, the Secretary shall publish that 
        determination, together with a concise statement of its 
        basis and the estimated economic impact of the 
        decision.
          [(B) The Secretary shall approve any application for 
        a validated license which is required under this 
        section for the export of any goods or technology to a 
        country (other than a controlled country) and which 
        meets all other requirements for such an application, 
        if the Secretary determines that such goods or 
        technology are available from foreign sources to that 
        country under the criteria established in subparagraph 
        (A), unless the President determines that approving the 
        license application would prove detrimental to the 
        national security of the United States. In any case in 
        which the Secretary makes a determination of foreign 
        availability under this subparagraph with respect to 
        any goods or technology, the Secretary shall determine 
        whether a determination of foreign availability under 
        subparagraph (A) with respect to such goods or 
        technology is warranted.
          [(3) Procedures for making determinations.--(A) The 
        Secretary shall make a foreign availability 
        determination under paragraph (1) or (2) on the 
        Secretary's own initiative or upon receipt of an 
        allegation from an export license applicant that such 
        availability exists. In making any such determination, 
        the Secretary shall accept the representations of 
        applicants made in writing and supported by reasonable 
        evidence, unless such representations are contradicted 
        by reliable evidence, including scientific or physical 
        examination, expert opinion based upon adequate factual 
        information, or intelligence information. In making 
        determinations of foreign availability, the Secretary 
        may consider such factors as cost, reliability, the 
        availability and reliability of spare parts and the 
        cost and quality thereof, maintenance programs, 
        durability, quality of end products produced by the 
        item proposed for export, and scale of production. For 
        purposes of this subparagraph, ``evidence'' may include 
        such items as foreign manufacturers' catalogues, 
        brochures, or operations or maintenance manuals, 
        articles from reputable trade publications, 
        photographs, and depositions based upon eyewitness 
        accounts.
          [(B) In a case in which an allegation is received 
        from an export license applicant, the Secretary shall, 
        upon receipt of the allegation, submit for publication 
        in the Federal Register notice of such receipt. Within 
        4 months after receipt of the allegation, the Secretary 
        shall determine whether the foreign availability 
        exists, and shall so notify the applicant. If the 
        Secretary has determined that the foreign availability 
        exists, the Secretary shall, upon making such 
        determination, submit the determination for review to 
        other departments and agencies as the Secretary 
        considers appropriate. The Secretary's determination of 
        foreign availability does not require the concurrence 
        or approval of any official, department, or agency to 
        which such a determination is submitted. Not later than 
        1 month after the Secretary makes the determination, 
        the Secretary shall respond in writing to the applicant 
        and submit for publication in the Federal Register, 
        that--
                  [(i) the foreign availability does exist 
                and--
                          [(I) the requirement of a validated 
                        license has been removed,
                          [(II) the President has determined 
                        that export controls under this section 
                        must be maintained notwithstanding the 
                        foreign availability and the applicable 
                        steps are being taken under paragraph 
                        (4), or
                          [(III) in the case of a foreign 
                        availability determination under 
                        paragraph (1), the foreign availability 
                        determination will be submitted to a 
                        multilateral review process in 
                        accordance with the agreement of the 
                        Coordinating Committee for a period of 
                        not more than 4 months beginning on the 
                        date of the publication; or
                  [(ii) the foreign availability does not 
                exist.
        In any case in which the submission for publication is 
        not made within the time period specified in the 
        preceding sentence, the Secretary may not thereafter 
        require a license for the export of the goods or 
        technology with respect to which the foreign 
        availability allegation was made. In the case of a 
        foreign availability determination under paragraph (1) 
        to which clause (i)(III) applies, no license for such 
        export may be required after the end of the 9-month 
        period beginning on the date on which the allegation is 
        received.
          [(4) Negotiations to eliminate foreign 
        availability.--(A) In any case in which export controls 
        are maintained under this section notwithstanding 
        foreign availability, on account of a determination by 
        the President that the absence of the controls would 
        prove detrimental to the national security of the 
        United States, the President shall actively pursue 
        negotiations with the governments of the appropriate 
        foreign countries for the purpose of eliminating such 
        availability. No later than the commencement of such 
        negotiations, the President shall notify in writing the 
        Committee on Banking, Housing, and Urban Affairs of the 
        Senate and the Committee on Foreign Affairs of the 
        House of Representatives that he has begun such 
        negotiations and why he believes it is important to 
        national security that export controls on the goods or 
        technology involved be maintained.
          [(B) If, within 6 months after the President's 
        determination that export controls be maintained, the 
        foreign availability has not been eliminated, the 
        Secretary may not, after the end of that 6-month 
        period, require a validated license for the export of 
        the goods or technology involved. The President may 
        extend the 6-month period described in the preceding 
        sentence for an additional period of 12 months if the 
        President certifies to the Congress that the 
        negotiations involved are progressing and that the 
        absence of the export controls involved would prove 
        detrimental to the national security of the United 
        States. Whenever the President has reason to believe 
        that goods or technology subject to export controls for 
        national security purposes by the United States may 
        become available from other countries to controlled 
        countries and that such availability can be prevented 
        or eliminated by means of negotiations with such other 
        countries, the President shall promptly initiate 
        negotiations with the governments of such other 
        countries to prevent such foreign availability.
          [(C) After an agreement is reached with a country 
        pursuant to negotiations under this paragraph to 
        eliminate or prevent foreign availability of goods or 
        technology, the Secretary may not require a validated 
        license for the export of such goods or technology to 
        that country.
          [(5) Expedited licenses for items available to 
        countries other than controlled countries.--(A) In any 
        case in which the Secretary finds that any goods or 
        technology from foreign sources is of similar quality 
        to goods or technology the export of which requires a 
        validated license under this section and is available 
        to a country other than a controlled country without 
        effective restrictions, the Secretary shall designate 
        such goods or technology as eligible for export to such 
        country under this paragraph.
          [(B) In the case of goods or technology designated 
        under subparagraph (A), then 20 working days after the 
        date of formal filing with the Secretary of an 
        individual validated license application for the export 
        of those goods or technology to an eligible country, a 
        license for the transaction specified in the 
        application shall become valid and effective and the 
        goods or technology are authorized for export pursuant 
        to such license unless the license has been denied by 
        the Secretary on account of an inappropriate end user. 
        The Secretary may extend the 20-day period provided in 
        the preceding sentence for an additional period of 15 
        days if the Secretary requires additional time to 
        consider the application and so notifies the applicant.
          [(C) The Secretary may make a foreign availability 
        determination under subparagraph (A) on the Secretary's 
        own initiative, upon receipt of an allegation from an 
        export license applicant that such availability exists, 
        or upon the submission of a certification by a 
        technical advisory committee of appropriate 
        jurisdiction that such availability exists. Upon 
        receipt of such an allegation or certification, the 
        Secretary shall publish notice of such allegation or 
        certification in the Federal Register and shall make 
        the foreign availability determination within 30 days 
        after such receipt and publish the determination in the 
        Federal Register. In the case of the failure of the 
        Secretary to make and publish such determination within 
        that 30-day period, the goods or technology involved 
        shall be deemed to be designated as eligible for export 
        to the country or countries involved, for purposes of 
        subparagraph (B).
          [(D) The provisions of paragraphs (1), (2), (3), and 
        (4) do not apply with respect to determinations of 
        foreign availability under this paragraph.
          [(6) Office of foreign availability.--The Secretary 
        shall establish in the Department of Commerce an Office 
        of Foreign Availability, which shall be under the 
        direction of the Under Secretary of Commerce for Export 
        Administration. The Office shall be responsible for 
        gathering and analyzing all the necessary information 
        in order for the Secretary to make determinations of 
        foreign availability under this Act. The Secretary 
        shall make available to the Committee on Foreign 
        Affairs of the House of Representatives and the 
        Committee on Banking, Housing, and Urban Affairs of the 
        Senate at the end of each 6-month period during a 
        fiscal year information on the operations of the 
        Office, and on improvements in the Government's ability 
        to assess foreign availability, during that 6-month 
        period, including information on the training of 
        personnel, the use of computers, and the use of 
        Commercial Service Officers of the United States and 
        Foreign Commercial Service. Such information shall also 
        include a description of representative determinations 
        made under this Act during that 6-month period that 
        foreign availability did or did not exist (as the case 
        may be), together with an explanation of such 
        determinations.
          [(7) 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 Office of 
        Foreign Availability concerning foreign availability of 
        goods and technology subject to export controls under 
        this Act. Each such department or agency shall allow 
        the Office of Foreign Availability access to any 
        information from a laboratory or other facility within 
        such department or agency.
          [(8) Removal of controls on less sophisticated goods 
        or technology.--In any case in which the Secretary may 
        not, pursuant to paragraph (1), (2), (3), or (4) of 
        this subsection or paragraph (6) of subsection (h) of 
        this section, require a validated license for the 
        export of goods or technology, then the Secretary may 
        not require a validated license for the export of any 
        similar goods or technology whose function, 
        technological approach, performance thresholds, and 
        other attributes that form the basis for export 
        controls under this section do not exceed the technical 
        parameters of the goods or technology from which the 
        validated license requirement is removed under the 
        applicable paragraph.
          [(9) Notice of all foreign availability 
        assessments.--Whenever the Secretary undertakes a 
        foreign availability assessment under this subsection 
        or subsection (h)(6), the Secretary shall publish 
        notice of such assessment in the Federal Register.
          [(10) Availability defined.--For purposes of this 
        subsection and subsections (f) and (h), the term 
        ``available in fact to controlled countries'' includes 
        production or availability of any goods or technology 
        in any country--
                  [(A) from which the goods or technology 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 
        goods or technology on a list of goods or technology 
        subject to bilateral or multilateral national security 
        export controls shall not alone constitute credible 
        evidence that a country provides an effective means of 
        controlling the export of such goods or technology to 
        controlled countries.
  [(g) Indexing.--(1) In order to ensure that requirements for 
validated licenses and other licenses authorizing multiple 
exports are periodically removed as goods or technology subject 
to such requirements becomes obsolete with respect to the 
national security of the United States, regulations issued by 
the Secretary may, where appropriate, provide for annual 
increases in the performance levels of goods or technology 
subject to any such licensing requirement. The regulations 
issued by the Secretary shall establish as one criterion for 
the removal of goods or technology from such license 
requirements the anticipated needs of the military of 
controlled countries. Any such goods or technology which no 
longer meets the performance levels established by the 
regulations shall be removed from the list established pursuant 
to subsection (c) of this section unless, under such exceptions 
and under such procedures as the Secretary shall prescribe, any 
other department or agency of the United States objects to such 
removal and the Secretary determines, on the basis of such 
objection, that the goods or technology shall not be removed 
from the list. The Secretary shall also consider, where 
appropriate, removing site visitation requirements for goods 
and technology which are removed from the list unless 
objections described in this subsection are raised.
  [(2)(A) In carrying out this subsection, the Secretary shall 
conduct annual reviews of the performance levels of goods or 
technology--
          [(i) which are eligible for export under a 
        distribution license,
          [(ii) below which exports to the People's Republic of 
        China require only notification of the governments 
        participating in the group known as the Coordinating 
        Committee, and
          [(iii) below which no authority or permission to 
        export may be required under subsection (b)(2) or 
        (b)(3) of this section.
The Secretary shall make appropriate adjustments to such 
performance levels based on these reviews.
  [(B) In any case in which the Secretary receives a request 
which--
          [(i) is to revise the qualification requirements or 
        minimum thresholds of any goods eligible for export 
        under a distribution license, and
          [(ii) is made by an exporter of such goods, 
        representatives of an industry which produces such 
        goods, or a technical advisory committee established 
        under subsection (h) of this section,
the Secretary, after consulting with other appropriate 
Government agencies and technical advisory committees 
established under subsection (h) of this section, shall 
determine whether to make such revision, or some other 
appropriate revision, in such qualification requirements or 
minimum thresholds. In making this determination, the Secretary 
shall take into account the availability of the goods from 
sources outside the United States. The Secretary shall make a 
determination on a request made under this subparagraph within 
90 days after the date on which the request is filed. If the 
Secretary's determination pursuant to such a request is to make 
a revision, such revision shall be implemented within 120 days 
after the date on which the request is filed and shall be 
published in the Federal Register.
  [(h) Technical Advisory Committees.--(1) Upon written request 
by representatives of a substantial segment of any industry 
which produces any goods or technology subject to export 
controls under this section or being considered for such 
controls because of their significance to the national security 
of the United States, the Secretary shall appoint a technical 
advisory committee for any such goods or technology which the 
Secretary determines are difficult to evaluate because of 
questions concerning technical matters, worldwide availability, 
and actual utilization of production and technology, or 
licensing procedures. Each such committee shall consist of 
representatives of United States industry and Government, 
including the Departments of Commerce, Defense, and State, the 
intelligence community, and, in the discretion of the 
Secretary, other Government departments and agencies. No person 
serving on any such committee who is a representative of 
industry shall serve on such committee for more than four 
consecutive years.
  [(2) Technical advisory committees established under 
paragraph (1) shall advise and assist the Secretary, the 
Secretary of Defense, and any other department, agency, or 
official of the Government of the United States to which the 
President delegates authority under this Act, with respect to 
actions designed to carry out the policy set forth in section 
3(2)(A) of this Act. Such committees, where they have expertise 
in such matters, shall be consulted with respect to 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 goods or technology, (D) revisions of the control list 
(as provided in subsection (c)(4)), including proposed 
revisions of multilateral controls in which the United States 
participates, (E) the issuance of regulations, and (F) any 
other questions relating to actions designed to carry out the 
policy set forth in section 3(2)(A) of this Act. Nothing in 
this subsection shall prevent the Secretary or the Secretary of 
Defense from consulting, at any time, with any person 
representing industry or the general public, regardless of 
whether such person is a member of a technical 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) Upon request of any member of any such committee, the 
Secretary may, if the Secretary determines it appropriate, 
reimburse such member for travel, subsistence, and other 
necessary expenses incurred by such member in connection with 
the duties of such member.
  [(4) Each such committee shall elect a chairman, and shall 
meet at least every three months at the call of the chairman, 
unless the chairman 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. The 
Secretary shall consult each such committee with respect to 
such termination or extension of that committee.
  [(5) To facilitate the work of the technical advisory 
committees, the Secretary, in conjunction with other 
departments and agencies participating in the administration of 
this Act, 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 goods or technology with respect to which 
that committee furnishes advice.
  [(6) Whenever a technical advisory committee certifies to the 
Secretary that goods or technology with respect to which such 
committee was appointed have become available in fact, to 
controlled countries, from sources outside the United States, 
including countries which participate with the United States in 
multilateral export controls, in sufficient quantity and of 
comparable quality so that requiring a validated license for 
the export of such goods or technology would be ineffective in 
achieving the purpose set forth in subsection (a) of this 
section, the technical advisory committee shall submit that 
certification to the Congress at the same time the 
certification is made to the Secretary, together with the 
documentation for the certification. The Secretary shall 
investigate the foreign availability so certified and, not 
later than 90 days after the certification is made, shall 
submit a report to the technical advisory committee and the 
Congress stating that--
          [(A) the Secretary has removed the requirement of a 
        validated license for the export of the goods or 
        technology, on account of the foreign availability,
          [(B) the Secretary has recommended to the President 
        that negotiations be conducted to eliminate the foreign 
        availability, or
          [(C) the Secretary has determined on the basis of the 
        investigation that the foreign availability does not 
        exist.
To the extent necessary, the report may be submitted on a 
classified basis. In any case in which the Secretary has 
recommended to the President that negotiations be conducted to 
eliminate the foreign availability, the President shall 
actively pursue such negotiations with the governments of the 
appropriate foreign countries. If, within 6 months after the 
Secretary submits such report to the Congress, the foreign 
availability has not been eliminated, the Secretary may not, 
after the end of that 6-month period, require a validated 
license for the export of the goods or technology involved. The 
President may extend the 6-month period described in the 
preceding sentence for an additional period of 12 months if the 
President certifies to the Congress that the negotiations 
involved are progressing and that the absence of the export 
control involved would prove detrimental to the national 
security of the United States. After an agreement is reached 
with a country pursuant to negotiations under this paragraph to 
eliminate foreign availability of goods or technology, the 
Secretary may not require a validated license for the export of 
such goods or technology to that country.
  [(i) Multilateral Export Controls.--Recognizing the 
ineffectiveness of unilateral controls and the importance of 
uniform enforcement measures to the effectiveness of 
multilateral controls, the President shall enter into 
negotiations with the governments participating in the group 
known as the Coordinating Committee (hereinafter in this 
subsection referred to as the ``Committee'') with a view toward 
accomplishing the following objectives:
          [(1) Enhanced public understanding of the Committee's 
        purpose and procedures, including publication of the 
        list of items controlled for export by agreement of the 
        Committee, together with all notes, understandings, and 
        other aspects of such agreement of the Committee, and 
        all changes thereto.
          [(2) Periodic meetings of high-level representatives 
        of participating governments for the purpose of 
        coordinating export control policies and issuing policy 
        guidance to the Committee.
          [(3) Strengthened legal basis for each government's 
        export control system, including, as appropriate, 
        increased penalties and statutes of limitations.
          [(4) Harmonization of export control documentation by 
        the participating governments to verify the movement of 
        goods and technology subject to controls by the 
        Committee.
          [(5) Improved procedures for coordination and 
        exchange of information concerning violations of the 
        agreement of the Committee.
          [(6) Procedures for effective implementation of the 
        agreement through uniform and consistent 
        interpretations of export controls agreed to by the 
        governments participating in the Committee.
          [(7) Coordination of national licensing and 
        enforcement efforts by governments participating in the 
        Committee, including sufficient technical expertise to 
        assess the licensing status of exports and to ensure 
        end-use verification.
          [(8) More effective procedures for enforcing export 
        controls, including adequate training, resources, and 
        authority for enforcement officers to investigate and 
        prevent illegal exports.
          [(9) Agreement to provide adequate resources to 
        enhance the functioning of individual national export 
        control systems and of the Committee.
          [(10) Improved enforcement and compliance with the 
        agreement through elimination of unnecessary export 
        controls and maintenance of an effective control list.
          [(11) Agreement to enhance cooperation among members 
        of the Committee in obtaining the agreement of 
        governments outside the Committee to restrict the 
        export of goods and technology on the International 
        Control List, to establish an ongoing mechanism in the 
        Committee to coordinate planning and implementation of 
        export control measures related to such agreements, and 
        to remove items from the International Control List if 
        such items continue to be available to controlled 
        countries or if the control of the items no longer 
        serves the common strategic objectives of the members 
        of the Committee.
For purposes of reviews of the International Control List, the 
President may include as advisors of the United States 
delegation to the Committee representatives of industry who are 
knowledgeable with respect to the items being reviewed.
  [(j) Commercial Agreements With Certain Countries.--(1) Any 
United States firm, enterprise, or other nongovernmental entity 
which enters into an agreement with any agency of the 
government of a controlled country, that calls for the 
encouragement of technical cooperation and that is intended to 
result in the export from the United States to the other party 
of unpublished technical data of United States origin, shall 
report to the Secretary the agreement with such agency in 
sufficient detail.
  [(2) The provisions of paragraph (1) shall not apply to 
colleges, universities, or other educational institutions.
  [(k) Negotiations With Other Countries.--The Secretary of 
State in consultation with the Secretary of Defense, the 
Secretary of Commerce, and the heads of other appropriate 
departments and agencies, shall be responsible for conducting 
negotiations with other countries, including those countries 
not participating in the group known as the Coordinating 
Committee, regarding their cooperation in restricting the 
export of goods and technology in order to carry out the policy 
set forth in section 3(9) of this Act, as authorized by 
subsection (a) of this section, including negotiations with 
respect to which goods and technology should be subject to 
multilaterally agreed export restrictions and what conditions 
should apply for exceptions from those restrictions. In cases 
where such negotiations produce agreements on export 
restrictions comparable in practice to those maintained by the 
Coordinating Committee, the Secretary shall treat exports, 
whether by individual or multiple licenses, to countries party 
to such agreements in the same manner as exports to members of 
the Coordinating Committee are treated, including the same 
manner as exports are treated under subsection (b)(2) of this 
section and section 10(o) of this Act.
  [(l) Diversion of Controlled Goods or Technology.--(1) 
Whenever there is reliable evidence, as determined by the 
Secretary, that goods or technology which were exported subject 
to national security controls under this section to a 
controlled country have been diverted to an unauthorized use or 
consignee in violation of the conditions of an export license, 
the Secretary for as long as that diversion continues--
          [(A) shall deny all further exports, to or by the 
        party or parties responsible for that diversion or who 
        conspired in that diversion, of any goods or technology 
        subject to national security controls under this 
        section, regardless of whether such goods or technology 
        are available from sources outside the United States; 
        and
          [(B) may take such additional actions under this Act 
        with respect to the party or parties referred to in 
        subparagraph (A) as the Secretary determines are 
        appropriate in the circumstances to deter the further 
        unauthorized use of the previously exported goods or 
        technology.
  [(2) As used in this subsection, the term ``unauthorized 
use'' means the use of United States goods or technology in the 
design, production, or maintenance of any item on the United 
States Munitions List, or the military use of any item on the 
International Control List of the Coordinating Committee.
  [(m) Goods Containing Controlled Parts and Components.--
Export controls may not be imposed under this section, or under 
any other provision of law, on a good solely on the basis that 
the good contains parts or components subject to export 
controls under this section if such parts or components--
          [(1) are essential to the functioning of the good,
          [(2) are customarily included in sales of the good in 
        countries other than controlled countries, and
          [(3) comprise 25 percent or less of the total value 
        of the good,
unless the good itself, if exported, would by virtue of the 
functional characteristics of the good as a whole make a 
significant contribution to the military potential of a 
controlled country which would prove detrimental to the 
national security of the United States.
  [(n) Security Measures.--The Secretary and the Commissioner 
of Customs, consistent with their authorities under section 
12(a) of this Act, and in consultation with the Director of the 
Federal Bureau of Investigation, shall provide advice and 
technical assistance to persons engaged in the manufacture or 
handling of goods or technology subject to export controls 
under this section to develop security systems to prevent 
violations or evasions of those export controls.
  [(o) Recordkeeping.--The Secretary, the Secretary of Defense, 
and any other department or agency consulted in connection with 
a license application under this Act or a revision of a list of 
goods or technology subject to export controls under this Act, 
shall make and keep records of their respective advice, 
recommendations, or decisions in connection with any such 
license application or revision, including the factual and 
analytical basis of the advice, recommendations, or decisions.
  [(p) National Security Control Office.--To assist in carrying 
out the policy and other authorities and responsibilities of 
the Secretary of Defense under this section, there is 
established in the Department of Defense a National Security 
Control Office under the direction of the Under Secretary of 
Defense Policy. The Secretary of Defense may delegate to that 
office such of those authorities and responsibilities, together 
with such ancillary functions, as the Secretary of Defense 
considers appropriate.
  [(q) Exclusion for Agricultural Commodities.--This section 
does not authorize export controls on agricultural commodities, 
including fats, oils, and animal hides and skins.

                        [foreign policy controls

  [Sec. 6. (a) Authority.--(1) In order to carry out the policy 
set forth in paragraph (2)(B), (7), (8), or (13) of section 3 
of this Act, the President may prohibit or curtail the 
exportation of any goods, 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, to 
the extent necessary to further significantly the foreign 
policy of the United States or to fulfill its declared 
international obligations. The authority granted by this 
subsection shall be exercised by the Secretary, in consultation 
with the Secretary of State, the Secretary of Defense, the 
Secretary of Agriculture, the Secretary of the Treasury, the 
United States Trade Representative, and such other departments 
and agencies as the Secretary considers appropriate, and shall 
be implemented by means of export licenses issued by the 
Secretary.
  [(2) Any export control imposed under this section shall 
apply to any transaction or activity undertaken with the intent 
to evade that export control, even if that export control would 
not otherwise apply to that transaction or activity.
  [(3) Export controls maintained for foreign policy purposes 
shall expire on December 31, 1979, or one year after 
imposition, whichever is later, unless extended by the 
President in accordance with subsections (b) and (f). Any such 
extension and any subsequent extension shall not be for a 
period of more than a year.
  [(4) Whenever the Secretary denies any export license under 
this subsection, the Secretary shall specify in the notice to 
the applicant of the denial of such license that the license 
was denied under the authority contained in this subsection, 
and the reasons for such denial, with reference to the criteria 
set forth in subsection (b) of this section. The Secretary 
shall also include in such notice what, if any, modifications 
in or restrictions on the goods or technology for which the 
license was sought would allow such export to be compatible 
with controls implemented under this section, or the Secretary 
shall indicate in such notice which officers and employees of 
the Department of Commerce who are familiar with the 
application will be made reasonably available to the applicant 
for consultation with regard to such modifications or 
restrictions, if appropriate.
  [(5) In accordance with the provisions of section 10 of this 
Act, the Secretary of State shall have the right to review any 
export license application under this section which the 
Secretary of State requests to review.
  [(6) Before imposing, expanding, or extending export controls 
under this section on exports to a country which can use goods, 
technology, or information available from foreign sources and 
so incur little or no economic costs as a result of the 
controls, the President should, through diplomatic means, 
employ alternatives to export controls which offer 
opportunities of distinguishing the United States from, and 
expressing the displeasure of the United States with, the 
specific actions of that country in response to which the 
controls are proposed. Such alternatives include private 
discussions with foreign leaders, public statements in 
situations where private diplomacy is unavailable or not 
effective, withdrawal of ambassadors, and reduction of the size 
of the diplomatic staff that the country involved is permitted 
to have in the United States.
  [(b) Criteria.--(1) Subject to paragraph (2) of this 
subsection, the President may impose, extend, or expand export 
controls under this section only if the President determines 
that--
          [(A) such controls are likely to achieve the intended 
        foreign policy purpose, in light of other factors, 
        including the availability from other countries of the 
        goods or technology proposed for such controls, and 
        that foreign policy purpose cannot be achieved through 
        negotiations or other alternative means;
          [(B) 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 exports are to be subject to the proposed 
        controls;
          [(C) the reaction of other countries to the 
        imposition, extension, or expansion of such export 
        controls by the United States is not likely to render 
        the controls ineffective in achieving the intended 
        foreign policy purpose or to be counterproductive to 
        United States foreign policy interests;
          [(D) the effect of the proposed controls on the 
        export performance of the United States, the 
        competitive position of the United States in the 
        international economy, the international reputation of 
        the United States as a supplier of goods and 
        technology, or on the economic well-being of individual 
        United States companies and their employees and 
        communities does not exceed the benefit to United 
        States foreign policy objectives; and
          [(E) the United States has the ability to enforce the 
        proposed controls effectively.
  [(2) With respect to those export controls in effect under 
this section on the date of the enactment of the Export 
Administration Amendments Act of 1985, the President, in 
determining whether to extend those controls, as required by 
subsection (a)(3) of this section, shall consider the criteria 
set forth in paragraph (1) of this subsection and shall 
consider the foreign policy consequences of modifying the 
export controls.
  [(c) Consultation With Industry.--The Secretary in every 
possible instance shall consult with and seek advice from 
affected United States industries and appropriate advisory 
committees established under section 135 of the Trade Act of 
1974 before imposing any export control under this section. 
Such consultation and advice shall be with respect to the 
criteria set forth in subsection (b)(1) and such other matters 
as the Secretary considers appropriate.
  [(d) Consultation With Other Countries.--When imposing export 
controls under this section, the President shall, at the 
earliest appropriate opportunity, consult with the countries 
with which the United States maintains export controls 
cooperatively, and with such other countries as the President 
considers appropriate, with respect to the criteria set forth 
in subsection (b)(1) and such other matters as the President 
considers appropriate.
  [(e) Alternative Means.--Before resorting to the imposition 
of export controls under this section, the President shall 
determine that reasonable efforts have been made to achieve the 
purposes of the controls through negotiations or other 
alternative means.
  [(f) Consultation With the Congress.--(1) The president may 
impose or expand export controls under this section, or extend 
such controls as required by subsection (a)(3) of this section, 
only after consultation with the Congress, including the 
Committee on Foreign Affairs of the House of Representatives 
and the Committee on Banking, Housing, and Urban Affairs of the 
Senate.
  [(2) The President may not impose, expand, or extend export 
controls under this section until the President has submitted 
to the Congress a report--
          [(A) specifying the purpose of the controls;
          [(B) specifying the determinations of the President 
        (or, in the case of those export controls described in 
        subsection (b)(2), the considerations of the President) 
        with respect to each of the criteria set forth in 
        subsection (b)(1), the bases for such determinations 
        (or considerations), and any possible adverse foreign 
        policy consequences of the controls;
          [(C) describing the nature, the subjects, and the 
        results of, or the plans for, the consultation with 
        industry pursuant to subsection (c) and with other 
        countries pursuant to subsection (d);
          [(D) specifying the nature and results of any 
        alternative means attempted under subsection (e), or 
        the reasons for imposing, expanding, or extending the 
        controls without attempting any such alternative means; 
        and
          [(E) describing the availability from other countries 
        of goods or technology comparable to the goods or 
        technology subject to the proposed export controls, and 
        describing the nature and results of the efforts made 
        pursuant to subsection (h) to secure the cooperation of 
        foreign governments in controlling the foreign 
        availability of such comparable goods or technology.
Such report shall also indicate how such controls will further 
significantly the foreign policy of the United States or will 
further its declared international obligations.
  [(3) To the extent necessary to further the effectiveness of 
the export controls portions of a report required by paragraph 
(2) may be submitted to the Congress on a classified basis, and 
shall be subject to the provisions of section 12(c) of this 
Act. Each such report shall, at the same time it is submitted 
to the Congress, also be submitted to the General Accounting 
Office for the purpose of assessing the report's full 
compliance with the intent of this subsection.
  [(4) In the case of export controls under this section which 
prohibit or curtail the export of any agricultural commodity, a 
report submitted pursuant to paragraph (2) shall be deemed to 
be the report required by section 7(g)(3)(A) of this Act.
  [(5) In addition to any written report required, under this 
section, the Secretary, not less frequently than annually, 
shall present in oral testimony before the Committee on 
Banking, Housing, and Urban Affairs of the Senate and the 
Committe on Foreign Affairs of the House of Representatives a 
report on policies and actions taken by the Government to carry 
out the provisions of this section.
  [(g) Exclusion for Medicine and Medical Supplies and for 
Certain Food Exports.--This section does not authorize export 
controls on medicine or medical supplies. This section also 
does not authorize export controls on donations of goods 
(including, but not limited to, food, educational materials, 
seeds and hand tools, medicines and medical supplies, water 
resources equipment, clothing and shelter materials, and basic 
household supplies) that are intended to meet basic human 
needs. Before export controls on food are imposed, expanded, or 
extended under this section, the Secretary shall notify the 
Secretary of State in the case of export controls applicable 
with respect to any developed country and shall notify the 
Director of the United States International Development 
Cooperation Agency in the case of export controls applicable 
with respect to any developing country. The Secretary of State 
with respect to developed countries, and the Director with 
respect to developing countries, shall determine whether the 
proposed export control on food would cause measurable 
malnutrition and shall inform the Secretary of that 
determination. If the Secretary is informed that the proposed 
export controls on food would cause measurable malnutrition, 
then those controls may not be imposed, expanded, or extended, 
as the case may be, unless the President determines that those 
controls are necessary to protect the national security 
interest of the United States, or unless the President 
determines that arrangements are insufficient to ensure that 
the food will reach those most in need. Each such determination 
by the Secretary of State or the Director of the United States 
International Development Cooperation Agency, and any such 
determination by the President, shall be reported to the 
Congress, together with a statement of the reasons for that 
determination. It is the intent of Congress that the President 
not impose export controls under this section on any goods or 
technology if he determines that the principal effect of the 
export of such goods or technology would be to help meet basic 
human needs. The subsection shall not be construed to prohibit 
the President from imposing restrictions on the export of 
medicine or medical supplies or of food under the International 
Emergency Economic Powers Act. This subsection shall not apply 
to any export control on medicine, medical supplies, or food, 
except for donations, which is in effect on the date of the 
enactment of the Export Administration Amendments Act of 1985. 
Notwithstanding the proceding provisions of this subsection, 
the President may impose export controls under this section on 
medicine, medical supplies, food, and donations of goods in 
order to carry out the policy set forth in paragraph (13) of 
section 3 of this Act.
  [(h) Foreign Availability.--(1) In applying export controls 
under this section, the President shall take all feasible steps 
to initiate and conclude negotiations with appropriate foreign 
governments for the purpose of securing the cooperation of such 
foreign governments in controlling the export to countries and 
consigness to which the United States export controls apply of 
any goods or technology comparable to goods or technology 
controlled under this section.
  [(2) Before extending any export control pursuant to 
subsection (a)(3) of this section, the President shall evaluate 
the results of his actions under paragraph (1) of this 
subsection and shall include the results of that evaluation in 
his report to the Congress pursuant to subsection (f) of this 
section.
  [(3) If, within 6 months after the date on which export 
controls under this section are imposed or expanded, or within 
6 months after the date of the enactment of the Export 
Administration Amendments Act of 1985 in the case of export 
controls in effect on such date of enactment, the President's 
efforts under paragraph (1) are not successful in securing the 
cooperation of foreign governments described in paragraph (1) 
with respect to those export controls, the Secretary shall 
thereafter take into account the foreign availability of the 
goods or technology subject to the export controls. If the 
Secretary affirmatively determines that a good or technology 
subject to the export controls is available in sufficient 
quantity and comparable quality from sources outside the United 
States to countries subject to the export controls so that 
denial of an export license would be ineffective in achieving 
purposes of the controls, then the Secretary shall, during the 
period of such foreign availability, approve any license 
application which is required for the export of the good or 
technology and which meets all requirements for such a license. 
The Secretary shall remove the good or technology from the list 
established pursuant to subsection (1) of this section if the 
Secretary determines that such action is appropriate.
  [(4) In making a determination of foreign availability under 
paragraph (3) of this subsection, the Secretary shall follow 
the procedures set forth in section 5(f)(3) of this Act.
  [(i) International Obligations.--The provisions of 
subsections (b), (c), (d), (e), (g), and (h) shall not apply in 
any case in which the President exercises the authority 
contained in this section to impose export controls, or to 
approve or deny export license applications, in order to 
fulfill obligations of the United States pursuant to treaties 
to which the United States is a party or pursuant to other 
international agreements.
  [(j) Countries Supporting International Terrorism.--(1) A 
validated license shall be required for the export of goods or 
technology to a country if the Secretary of State has made the 
following determinations:
          [(A) The government of such country has repeatedly 
        provided support for acts of international terrorism.
          [(B) The export of such goods or technology could 
        make a significant contribution to the military 
        potential of such country, including its military 
        logistics capability, or could enhance the ability of 
        such country to support acts of international 
        terrorism.
  [(2) The Secretary and the Secretary of State shall notify 
the Committee on Foreign Affairs of the House of 
Representatives and the Committee on Banking, Housing, and 
Urban Affairs and the Committee on Foreign Relations of the 
Senate at least 30 days before issuing any validated license 
required by paragraph (1).
  [(3) Each determination of the Secretary of State under 
paragraph (1)(A), including each determination in effect on the 
date of the enactment of the Antiterrorism and Arms Export 
Amendments Act of 1989, shall be published in the Federal 
Register.
  [(4) 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) The Secretary and the Secretary of State shall 
        include in the notification required by paragraph (2)--
                  [(A) a detailed description of the goods or 
                services to be offered, including a brief 
                description of the capabilities of any article 
                for which a license to export is sought;
                  [(B) the reasons why the foreign country or 
                international organization to which the export 
                or transfer is proposed to be made needs the 
                goods or services which are the subject of such 
                export or transfer and a description of the 
                manner in which such country or organization 
                intends to use such articles, services, or 
                design and construction services;
                  [(C) the reasons why the proposed export or 
                transfer is in the national interest of the 
                United States;
                  [(D) an analysis of the impact of the 
                proposed export or transfer on the military 
                capabilities of the foreign country or 
                international organization to which such export 
                or transfer would be made;
                  [(E) an analysis of the manner in which the 
                proposed export would affect the relative 
                military strengths of countries in the region 
                to which the goods or services which are the 
                subject of such export would be delivered and 
                whether other countries in the region have 
                comparable kinds and amounts of articles, 
                services, or design and construction services; 
                and
                  [(F) an analysis of the impact of the 
                proposed export or transfer on the United 
                States relations with the countries in the 
                region to which the goods or services which are 
                the subject of such export would be delivered.
  [(k) Negotiations With Other Countries.--
          [(1) Countries participating in certain agreements.--
        The Secretary of State, in consultation with the 
        Secretary, the Secretary of Defense, and the heads of 
        other appropriate departments and agencies, shall be 
        responsible for conducting negotiations with those 
        countries participating in the groups known as the 
        Coordinating Committee, the Missile Technology Control 
        Regime, the Australia Group, and the Nuclear Suppliers' 
        Group, regarding their cooperation in restricting the 
        export of goods and technology in order to carry out--
                  [(A) the policy set forth in section 3(2)(B) 
                of this Act, and
                  [(B) United States policy opposing the 
                proliferation of chemical, biological, nuclear, 
                and other weapons and their delivery systems, 
                and effectively restricting the export of dual 
                use components of such weapons and their 
                delivery systems, in accordance with this 
                subsection and subsections (a) and (l).
        Such negotiations shall cover, among other issues, 
        which goods and technology should be subject to 
        multilaterally agreed export restrictions, and the 
        implementation of the restrictions consistent with the 
        principles identified in section 5(b)(2)(C) of this 
        Act.
          [(2) Other countries.--The Secretary of State, in 
        consultation with the Secretary, the Secretary of 
        Defense, and the heads of other appropriate departments 
        and agencies, shall be responsible for conducting 
        negotiations with countries and groups of countries not 
        referred to in paragraph (1) regarding their 
        cooperation in restricting the export of goods and 
        technology consistent with purposes set forth in 
        paragraph (1). In cases where such negotiations produce 
        agreements on export restrictions that the Secretary, 
        in consultation with the Secretary of State and the 
        Secretary of Defense, determines to be consistent with 
        the principles identified in section 5(b)(2)(C) of this 
        Act, the Secretary may treat exports, whether by 
        individual or multiple licenses, to countries party to 
        such agreements in the same manner as exports are 
        treated to countries that are MTCR adherents.
          [(3) Review of determinations.--The Secretary shall 
        annually review any determination under paragraph (2) 
        with respect to a country. For each such country which 
        the Secretary determines is not meeting the 
        requirements of an effective export control system in 
        accordance with section 5(a)(4)(D), the Secretary shall 
        restrict or eliminate any preferential licensing 
        treatment for exports to that country provided under 
        this subsection.
  [(l) Missile Technology.--
          [(1) Determination of controlled items.--The 
        Secretary, in consultation with the Secretary of State, 
        the Secretary of Defense, and the heads of other 
        appropriate departments and agencies--
                  [(A) shall establish and maintain, as part of 
                the control list established under this 
                section, a list of all dual use goods and 
                technology on the MTCR Annex; and
                  [(B) may include, as part of the control list 
                established under this section, goods and 
                technology that would provide a direct and 
                immediate impact on the development of missile 
                delivery systems and are not included in the 
                MTCR Annex but which the United States is 
                proposing to the other MTCR adherents to have 
                included in the MTCR Annex.
          [(2) Requirement of individual validated licenses.--
        The Secretary shall require an individual validated 
        license for--
                  [(A) any export of goods or technology on the 
                list established under paragraph (1) to any 
                country; and
                  [(B) any export of goods or technology 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 MTCR adherent.
          [(3) Policy of denial of licenses.--(A) Licenses 
        under paragraph (2) should in general be denied if the 
        ultimate consignee of the goods or technology is a 
        facility in a country that is not an adherent to the 
        Missile Technology Control Regime and the facility is 
        designed to develop or build missiles.
          [(B) Licenses under paragraph (2) shall be denied if 
        the ultimate consignee of the goods or technology is a 
        facility in a country the government of which has been 
        determined under subsection (j) to have repeatedly 
        provided support for acts of international terrorism.
          [(4) Consultation with other departments.--(A) A 
        determination of the Secretary to approve an export 
        license under paragraph (2) for the export of goods or 
        technology to a country of concern regarding missile 
        proliferation may be made only after consultation with 
        the Secretary of Defense and the Secretary of State for 
        a period of 20 days. The countries of concern referred 
        to in the preceding sentence shall be maintained on a 
        classified list by the Secretary of State, in 
        consultation with the Secretary and the Secretary of 
        Defense.
          [(B) Should the Secretary of Defense disagree with 
        the determination of the Secretary to approve an export 
        license to which subparagraph (A) applies, the 
        Secretary of Defense shall so notify the Secretary 
        within the 20 days provided for consultation on the 
        determination. The Secretary of Defense shall at the 
        same time submit the matter to the President for 
        resolution of the dispute. The Secretary shall also 
        submit the Secretary's recommendation to the President 
        on the license application.
          [(C) The President shall approve or disapprove the 
        export license application within 20 days after 
        receiving the submission of the Secretary of Defense 
        under subparagraph (B).
          [(D) Should the Secretary of Defense fail to notify 
        the Secretary within the time period prescribed in 
        subparagraph (B), the Secretary may approve the license 
        application without awaiting the notification by the 
        Secretary of Defense. Should the President fail to 
        notify the Secretary of his decision on the export 
        license application within the time period prescribed 
        in subparagraph (C), the Secretary may approve the 
        license application without awaiting the President's 
        decision on the license application.
          [(E) Within 10 days after an export license is issued 
        under this subsection, the Secretary shall provide to 
        the Secretary of Defense and the Secretary of State the 
        license application and accompanying documents issued 
        to the applicant, to the extent that the relevant 
        Secretary indicates the need to receive such 
        application and documents.
          [(5) Information sharing.--The Secretary shall 
        establish a procedure for information sharing with 
        appropriate officials of the intelligence community, as 
        determined by the Director of Central Intelligence, and 
        other appropriate Government agencies, that will ensure 
        effective monitoring of transfers of MTCR equipment or 
        technology and other missile technology.
  [(m) Chemical and Biological Weapons.--
          [(1) Establishment of list.--The Secretary, in 
        consultation with the Secretary of State, the Secretary 
        of Defense, and the heads of other appropriate 
        departments and agencies, shall establish and maintain, 
        as part of the list maintained under this section, a 
        list of goods and technology that would directly and 
        substantially assist a foreign government or group in 
        acquiring the capability to develop, produce, 
        stockpile, or deliver chemical or biological weapons, 
        the licensing of which would be effective in barring 
        acquisition or enhancement of such capability.
          [(2) Requirement for validated licenses.--The 
        Secretary shall require a validated license for any 
        export of goods or technology on the list established 
        under paragraph (1) to any country of concern.
          [(3) Countries of concern.--For purposes of paragraph 
        (2), the term ``country of concern'' means any country 
        other than--
                  [(A) a country with whose government the 
                United States has entered into a bilateral or 
                multilateral arrangement for the control of 
                goods or technology on the list established 
                under paragraph (1); and
                  [(B) such other countries as the Secretary of 
                State, in consultation with the Secretary and 
                the Secretary of Defense, shall designate 
                consistent with the purposes of the Chemical 
                and Biological Weapons Control and Warfare 
                Elimination Act of 1991.
  [(n) Crime Control Instruments.--(1) Crime control and 
detection instruments and equipment shall be approved for 
export by the Secretary only pursuant to a validated export 
license. Notwithstanding any other provision of this Act--
          [(A) any determination of the Secretary of what goods 
        or technology shall be included on the list established 
        pursuant to subsection (1) of this section as a result 
        of the export restrictions imposed by this subsection 
        shall be made with the concurrence of the Secretary of 
        State, and
          [(B) 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 in concurrence with the recommendations of the 
        Secretary of State submitted to the Secretary with 
        respect to the application pursuant to section 10(e) of 
        this Act,
except that, if the Secretary does not agree with the Secretary 
of State with respect to any determination under subparagraph 
(A) or (B), the matter shall be referred to the President for 
resolution.
  [(2) 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.
  [(o) Control List.--The Secretary shall establish and 
maintain, as part of the control list, a list of any goods or 
technology subject to export controls under this section, and 
the countries to which such controls apply. The Secretary shall 
clearly identify on the control list which goods or technology, 
and which countries or destinations, are subject to which types 
of controls under this section. Such list shall consist of 
goods and technology identified by the Secretary of State, with 
the concurrence of the Secretary. If the Secretary and the 
Secretary of State are unable to agree on the list, the matter 
shall be referred to the President. Such list shall be reviewed 
not less frequently than every three years in the case of 
controls maintained cooperatively with other countries, and 
annually in the case of all other controls, for the purpose of 
making such revisions as are necessary in order to carry out 
this section. During the course of such review, an assessment 
shall be made periodically of the availability from sources 
outside the United States, or any of its territories or 
possessions, of goods and technology comparable to those 
controlled for export from the United States under this 
section.
  [(p) Effect on Existing Contracts and Licenses.--The 
President may not, under this section, prohibit or curtail the 
export or reexport of goods, technology, or other information--
          [(1) in performance of a contract or agreement 
        entered into before the date on which the President 
        reports to the Congress, pursuant to subsection (f) of 
        this section, his intention to impose controls on the 
        export or reexport of such goods, technology, or other 
        information, or
          [(2) under a validated license or other authorization 
        issued under this Act,
unless and until 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 or curtailment of such 
        contracts, agreements, licenses, or authorizations will 
        be instrumental in remedying the situation posing the 
        direct threat, and
          [(C) the export controls will continue only so long 
        as the direct threat persists.
  [(q) Extension of Certain Controls.--Those export controls 
imposed under this section with respect to South Africa which 
were in effect on February 28, 1982, and ceased to be effective 
on March 1, 1982, September 15, 1982, or January 20, 1983, 
shall become effective on the date of the enactment of this 
subsection, and shall remain in effect until 1 year after such 
date of enactment. At the end of that 1-year period, any of 
those controls made effective by this subsection may be 
extended by the President in accordance with subsections (b) 
and (f) of this section.
  [(r) Expanded Authority to Impose Controls.--(1) In any case 
in which the President determines that it is necessary to 
impose controls under this section without any limitation 
contained in subsection (c), (d), (e), (g), (h), or (m) of this 
section, the President may impose those controls only if the 
President submits that determination to the Congress, together 
with a report pursuant to subsection (f) of this section with 
respect to the proposed controls, and only if a law is enacted 
authorizing the imposition of those controls. If a joint 
resolution authorizing the imposition of those controls is 
introduced in either House of Congress within 30 days after the 
Congress receives the determination and report of the 
President, that joint resolution shall be referred to the 
Committee on Banking, Housing, and Urban Affairs of the Senate 
and to the appropriate committee of the House of 
Representatives. If either such committee 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 
joint resolution.
  [(2) For purposes of this subsection, the term ``joint 
resolution'' means a joint resolution the matter after the 
resolving clause of which is as follows: ``That the Congress, 
having received on a determination of the President under 
section 6(o)(1) of the Export Administration Act of 1979 with 
respect to the export controls which are set forth in the 
report submitted to the Congress with that determination, 
authorizes the President to impose those export controls.'', 
with the date of the receipt of the determination and report 
inserted in the blank.
  [(3) In the computation of the periods of 30 days referred to 
in paragraph (1), 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.
  [(s) Spare Parts.--(1) 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 for parts in goods subject to such 
export controls.
  [(2) With respect to export controls imposed under this 
section before the date of the enactment of this subsection, an 
individual validated export license shall not be required for 
replacement parts which are exported to replace on a one-for-
one basis parts that were in a good that was lawfully exported 
from the United States, unless the President determines that 
such a license should be required for such parts.

                         [short supply controls

  [Sec. 7. (a) Authority.--(1) In order to carry out the policy 
set forth in section 3(2)(C) of this Act, the President may 
prohibit or curtail the export of any goods 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 3(2)(C) of 
this Act, 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 goods and treats the United States equitably in 
times of short supply.
  [(2) Upon imposing quantitative restrictions on exports of 
any goods to carry out the policy set forth in section 3(2)(C) 
of this Act, 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 from the date of publication on the impact of 
such restrictions and the method of licensing used to implement 
them.
  [(3) 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 order to carry out the policy set 
forth in section 3(2)(C) of this Act, the Secretary shall 
monitor exports, and contracts for exports, of any good (other 
than a commodity which is subject to the reporting requirements 
of section 812 of the Agricultural Act of 1970) 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 
3(2)(C) of this Act, 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) of this subsection.
  [(2) The results of such monitoring 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.
  [(3) 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, drilling rigs, platforms, and 
equipment; petroleum refineries, natural gas processing, 
liquefaction, and gasification plants; facilities for 
production of synthetic natural gas or synthetic crude oil; oil 
and gas pipelines, pumping stations, and associated equipment; 
and vessels for transporting oil, gas, coal, and other fuels.
  [(c) Petitions for Monitoring or Controls.--(1)(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 3(2)(C) of this Act.
  [(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) of this subsection 
is satisfied.
  [(2) 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 of 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 petitioner 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 of publication 
        of such notice 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 that 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)(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 3(2)(C) of this Act. 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 the 
        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 
        3(2)(C) of this Act.
  [(B) The Secretary shall publish in the Federal Register a 
detailed statement of the reasons for the Secretary's 
determination pursuant to subparagraph (A) of whether to impose 
monitoring or controls, or both, including the findings of fact 
in support of that determination.
  [(4) 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) 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) If a petition with respect to a particular material or 
group of materials has been considered in accordance with all 
the procedures prescribed 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) 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) 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 action 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 
        3(2)(C) of this Act.
  [(9) The authority under this subsection shall not be 
construed to affect the authority of the Secretary under any 
other provision of this Act, 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) of this 
subsection.
  [(10) 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 Act, 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) Domestically Produced Crude Oil.--(1) Notwithstanding 
any other provision of this Act and notwithstanding subsection 
(u) of section 28 of the Mineral Leasing Act of 1920 (30 U.S.C. 
185), no domestically produced crude oil transported by 
pipeline over right-of-way granted pursuant to section 203 of 
the Trans-Alaska Pipeline Authorization Act (43 U.S.C. 1652) 
(except any such crude oil which (A) is exported to an adjacent 
foreign country to be refined and consumed therein in exchange 
for the same quantity of crude oil being exported from that 
country to the United States; such exchange must result through 
convenience or increased efficiency of transportation in lower 
prices for consumers of petroleum products in the United States 
as described in paragraph (2)(A)(ii) of this subsection, (B) is 
temporarily exported for convenience or increased efficiency of 
transportation across parts of an adjacent foreign country and 
reenters the United States, or (C) is transported to Canada, to 
be consumed therein, in amounts not to exceed an annual average 
of 50,000 barrels per day, in addition to exports under 
subparagraphs (A) and (B), except that any ocean transportation 
of such oil shall be by vessels documented under section 12106 
of title 46, United States Code) may be exported from the 
United States, or any of its territories and possessions, 
subject to paragraph (2) of this subsection.
  [(2) Crude oil subject to the prohibition contained in 
paragraph (1) may be exported only if--
          [(A) the President so recommends to the Congress 
        after making and publishing express findings that 
        exports of such crude oil, including exchanges--
                  [(i) will not diminish the total quantity or 
                quality of petroleum refined within, stored 
                within, or legally committed to be transported 
                to and sold within the United States;
                  [(ii) will, within 3 months following the 
                initiation of such exports or exchanges, result 
                in (I) acquisition costs to the refiners which 
                purchase the imported crude oil being lower 
                than the acquisition costs such refiners would 
                have to pay for the domestically produced oil 
                in the absence of such an export or exchange, 
                and (II) not less than 75 percent of such 
                savings in costs being reflected in wholesale 
                and retail prices of products refined from such 
                imported crude oil;
                  [(iii) will be made only pursuant to 
                contracts which may be terminated if the crude 
                oil suppliers of the United States are 
                interrupted, threatened, or diminished;
                  [(iv) are clearly necessary to protect the 
                national interest; and
                  [(v) are in accordance with the provisions of 
                this Act; and
          [(B) the President includes such findings in his 
        recommendation to the Congress and the Congress, within 
        60 days after receiving that recommendation, agrees to 
        a joint resolution which approves such exports on the 
        basis of those findings, and which is thereafter 
        enacted into law.
  [(3) Notwithstanding any other provision of this section or 
any other provision of law, including subsection (u) of section 
28 of the Mineral Leasing Act of 1920, the President may export 
oil to any country pursuant to a bilateral international oil 
supply agreement entered into by the United States with such 
nation before June 25, 1979, or to any country pursuant to the 
International Emergency Oil Sharing Plan of the International 
Energy Agency.
  [(e) Refined Petroleum Products.--(1) In any case in which 
the President determines that it is necessary to impose export 
controls on refined petroleum products in order to carry out 
the policy set forth in section 3(2)(C) of this Act, the 
President shall notify the Congress of that determination. The 
President shall also notify the Congress if and when he 
determines that such export controls are no longer necessary. 
During any period in which a determination that such export 
controls are necessary is in effect, no refined petroleum 
product may be exported except pursuant to an export license 
specifically authorizing such export. Not later than 5 days 
after an application for a license to export any refined 
petroleum product or residual fuel oil is received, the 
Secretary shall notify the Congress of such application, 
together with the name of the exporter, the destination of the 
proposed export, and the amount and price of the proposed 
export. Such notification shall be made to the chairman of the 
Committee on Foreign Affairs of the House of Representatives 
and the chairman of the Committee on Banking, Housing, and 
Urban Affairs of the Senate.
  [(2) The Secretary may not grant such license during the 30-
day period beginning on the date on which notification to the 
Congress under paragraph (1) is received, unless the President 
certifies in writing to the Speaker of the House of 
Representatives and the President pro tempore of the Senate 
that the proposed export is vital to the national interest and 
that a delay in issuing the license would adversely affect that 
interest.
  [(3) This subsection shall not apply to (A) any export 
license application for exports to a country with respect to 
which historical export quotas established by the Secretary on 
the basis of past trading relationships apply, or (B) any 
license application for exports to a country if exports under 
the license would not result in more than 250,000 barrels of 
refined petroleum products being exported from the United 
States to such country in any fiscal year.
  [(4) For purposes of this subsection, ``refined petroleum 
product'' means gasoline, kerosene, distillates, propane or 
butane gas, diesel fuel, and residual fuel oil refined within 
the United States or entered for consumption within the United 
States.
  [(5) The Secretary may extend any time period prescribed in 
section 10 of this Act to the extent necessary to take into 
account delays in action by the Secretary on a license 
application on account of the provisions of this subsection.
  [(f) Certain Petroleum Products.--Petroleum products refined 
in United States Foreign Trade Zones, or in the United States 
Territory of Guam, from foreign crude oil shall be excluded 
from any quantitative restrictions imposed under this section 
except that, if the Secretary finds that a product is in short 
supply, the Secretary may issue such regulations as may be 
necessary to limit exports.
  [(g) Agricultural Commodities.--(1) The authority conferred 
by this section shall not be exercised with respect to any 
agricultural commodity, including fats and oils 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 such exercise of authority is 
required to carry out the policies set forth in subparagraph 
(A) or (B) of paragraph (2) of section 3 of this Act. The 
Secretary of Agriculture shall, by exercising the authorities 
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) 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 3(2)(C) of this Act 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 materials 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 
implement this paragraph.
  [(3)(A) If the President imposes export controls on any 
agricultural commodity in order to carry out the policy set 
forth in paragraph (2)(B), (2)(C), (7), or (8) of section 3 of 
this Act, 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 its 
receipt of the report, adopts 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 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 Act 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)(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 7(g)(3) of the Export Administration Act of 1979, 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 
the chairman of the Committee on Foreign Affairs, for himself 
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 himself 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) All joint resolutions introduced in the House of 
Representatives shall be referred to the appropriate committee 
and all joint resolutions introduced in the Senate shall be 
referred to the Committee on Banking, Housing, and Urban 
Affairs.
  [(D) 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 
joint resolution or of any other joint resolution introduced 
with respect to the same matter.
  [(E) 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 or 
discharged pursuant to the provisions of this paragraph, it 
shall be in order for the Committee on Rules of the House of 
Representatives to present for consideration a resolution of 
the House of Representatives providing procedures for the 
immediate consideration of a joint resolution under this 
paragraph which may be similar, if applicable, to the 
procedures set forth in section 601(b)(4) of the International 
Security Assistance and Arms Export Control Act of 1976.
  [(F) 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 had been received from the other 
        House; but
          [(ii) the vote on final passage shall be on the joint 
        resolution of the other House.
  [(5) In the computation of the period of 60 days referred to 
in paragraph (3) and the period of 30 days referred to in 
subparagraph (D) of paragraph (4), 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.
  [(h) Barter Agreements.--(1) The exportation pursuant to a 
barter agreement of any goods which may lawfully be exported 
from the United States, for any goods which may lawfully be 
imported into the United States, may be exempted, in accordance 
with paragraph (2) of this subsection, from any quantitative 
limitation on exports (other than any reporting requirement) 
imposed to carry out the policy set forth in section 3(2)(C) of 
this Act.
  [(2) the Secretary shall grant an exemption under paragraph 
(1) if the Secretary finds, after consulation 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 goods 
                to be exported pursuant to the barter agreement 
                will not be required to satisfy the average 
                amount of such goods estimated to be required 
                annually by the domestic economy and will be 
                surplus thereto; and
                  [(ii) the average annual quantity of the 
                goods to be imported will be less than the 
                average amount of such goods 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) For purposes of this subsection, the term ``barter 
agreement'' means any agreement which is made for the exchange, 
without monetary consideration, of any goods produced in the 
United States for any goods produced outside of the United 
States.
  [(4) This subsection shall apply only with respect to barter 
agreements entered into after the effective date of this Act.
  [(i) Unprocessed Red Cedar.--(1) The Secretary shall require 
a validated license, under the authority contained in 
subsection (a) of this section, for the export of unprocessed 
western red cedar (Thuja plicata) logs, harvested from State or 
Federal lands. The Secretary shall impose quanitiative 
restrictions upon the export of unprocessed western red cedar 
logs during the 3-year period beginning on the effective date 
of this Act as follows:
          [(A) Not more than thirty million board feet scribner 
        of such logs may be exported during the first year of 
        such 3-year period.
          [(B) Not more than fifteen million board feet 
        scribner of such logs may be exported during the second 
        year of such period.
          [(C) Not more than five million board feet scribner 
        of such logs may be exported during the third year of 
        such period.
After the end of such 3-year period, no unprocessed western red 
cedar logs harvested from State or Federal lands may be 
exported from the United States.
  [(2) To the maximum extent practicable, the Secretary shall 
utilize the multiple validated export licenses described in 
section 4(a)(2) of ths Act in lieu of validated licenses for 
exports under this subsection.
  [(3) The Secretary shall allocate export licenses to 
exporters pursuant to this subsection on the basis of a prior 
history of exportation by such exporters and such other factors 
as the Secretary considers necessary and appropriate to 
minimize any hardship to the producers of western red cedar and 
to further the foreign policy of the United States.
  [(4) Unprocessed western red cedar logs shall not be 
considered to be an agricultural commodity for purposes of 
subsection (g) of this section.
  [(5) As used in this subsection, the term ``unprocessed 
western red cedar'' means red cedar timber which has not been 
processed into--
          [(A) lumber of American Lumber Standards Grades of 
        Number 3 dimension or better, or Pacific Lumber 
        Inspection Bureau Export R-List Grades of Number 3 
        common or better;
          [(B) chips, pulp, and pulp products;
          [(C) veneer and plywood;
          [(D) poles, posts, or pilings cut or treated with 
        preservative for use as such and not intended to be 
        further processed; or
          [(E) shakes and shingles.
  [(j) Effect of Controls on Existing Contracts.--The export 
restrictions contained in subsection (i) of this section and 
any export controls imposed under 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. Any export controls imposed under this section on any 
agricultural commodity (including fats, oils, and animal hides 
and skins) or on any forest product or fishery product, shall 
not affect any contract to export entered into before the date 
on which such controls are imposed. For purposes of this 
subsection, 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 goods or 
technology.
  [(k) Oil Exports for Use by United States Military 
Facilities.--For purposes of subsection (d) of this section, 
and for purposes of any export controls imposed under this Act, 
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.

                           [foreign boycotts

  [Sec. 8. (a) Prohibitions and Exceptions.--(1) For the 
purpose of implementing the policies set forth in subparagraph 
(A) or (B) of paragraph (5) of section 3 of this Act, the 
President shall issue regulations prohibiting any United States 
person, with respect to his 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 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 which 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 contribution to, or is 
        otherwise associated with or involved in the activities 
        of any charitable or fraternal organization which 
        supports the boycotted country.
          [(F) Paying, honoring, confirming, or otherwise 
        implementing a letter of credit which contains any 
        condition or requirement 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) Regulations issued pursuant to paragraph (1) shall 
provide exceptions for--
          [(A) complying or agreeing to comply with 
        requirements (i) prohibiting the import of goods or 
        services from the boycotted country or goods 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 goods to the boycotted 
        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 goods 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 transshipments 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 that country with respect to his 
        activities exclusively therein, and such regulations 
        may contain exceptions for such resident complying with 
        the laws or regulations of that foreign country 
        governing imports into such country of trademarked, 
        trade named, or similarly specifically identifiable 
        products, or components of products for his own use, 
        including the performance of contractual services 
        within that country, as may be defined by such 
        regulations.
  [(3) Regulations issued pursuant to paragraphs (2)(C) and 
(2)(F) shall not provide exceptions from paragraphs (1)(B) and 
(1)(C).
  [(4) Nothing in this subsection may be construed to supersede 
or limit the operation of the antitrust, or civil rights laws 
of the United States.
  [(5) 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) Foreign Policy Controls.--(1) In addition to the 
regulations issued pursuant to subsection (a) of this section, 
regulations issued under section 6 of this Act shall implement 
the policies set forth in section 3(5).
  [(2) 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 3(5) 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 goods 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 3(5) of this Act.
  [(c) Preemption.--The provisions of this section and the 
regulations issued pursuant thereto shall preempt any 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, which law, rule, or regulation 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.

          [procedures for hardship relief from export controls

  [Sec. 9. (a) Filing of Petitions.--Any person who, in such 
person's domestic manufacturing process or other domestic 
business operation, utilizes a product produced abroad in whole 
or in part from a good historically obtained from the United 
States but which has been made subject to export controls, or 
any person who historically has exported such a good, may 
transmit a petition of hardship to the Secretary requesting an 
exemption from such controls in order to alleviate any unique 
hardship resulting from the imposition of such controls. A 
petition under this section shall be in such form as the 
Secretary shall prescribe and shall contain information 
demonstrating the need for the relief requested.
  [(b) Decision of the Secretary.--Not later than 30 days after 
receipt of any petition under subsection (a), the Secretary 
shall transmit a written decision to the petitioner granting or 
denying the requested relief. Such decision shall contain a 
statement setting forth the Secretary's basis for the grant or 
denial. Any exemption granted may be subject to such conditions 
as the Secretary considers appropriate.
  [(c) Factors To Be Considered.--For purposes of this section, 
the Secretary's decision with respect to the grant or denial of 
relief from unique hardship resulting directly or indirectly 
from the imposition of export controls shall reflect the 
Secretary's consideration of factors such as the following:
          [(1) Whether denial would cause a unique hardship to 
        the petitioner which can be alleviated only by granting 
        an exception to the applicable regulations. In 
        determining whether relief shall be granted, the 
        Secretary shall take into account--
                  [(A) ownership of material for which there is 
                no practicable domestic market by virtue of the 
                location or nature of the material;
                  [(B) potential serious financial loss to the 
                applicant if not granted an exception;
                  [(C) inability to obtain, except through 
                import, an item essential for domestic use 
                which is produced abroad from the good under 
                control;
                  [(D) the extent to which denial would 
                conflict, to the particular detriment of the 
                applicant, with other national policies 
                including those reflected in any international 
                agreement to which the United States is a 
                party;
                  [(E) possible adverse effects on the economy 
                (including unemployment) in any locality or 
                region of the United States; and
                  [(F) other relevant factors, including the 
                applicant's lack of an exporting history during 
                any base period that may be established with 
                respect to export quotas for the particular 
                good.
          [(2) The effect a finding in favor of the applicant 
        would have on attainment of the basic objectives of the 
        short supply control program.
In all cases, the desire to sell at higher prices and thereby 
obtain greater profits shall not be considered as evidence of a 
unique hardship, nor will circumstances where the hardship is 
due to imprudent acts or failure to act on the part of the 
petitioner.

[procedures for processing export license applications; other inquiries

  [Sec. 10. (a) Primary Responsibility of the Secretary.--(1) 
All export license applications required under this Act shall 
be submitted by the applicant to the Secretary. All 
determinations with respect to any such application shall be 
made by the Secretary, subject to the procedures provided in 
this section.
  [(2) It is the intent of the Congress that a determination 
with respect to any export license application be made to the 
maximum extent possible by the Secretary without referral of 
such application to any other department or agency of the 
Government.
  [(3) To the extent necessary, the Secretary shall seek 
information and recommendations from the Government departments 
and agencies concerned with aspects of United States domestic 
and foreign polices and operations having an important bearing 
on exports. Such departments and agencies shall cooperate fully 
in rendering such information and recommendations.
  [(b) Initial Screening.--Within 10 days after the date on 
which any export license application is submitted pursuant to 
subsection (a)(1), the Secretary shall--
          [(1) sent the applicant an acknowledgment of the 
        receipt of the application and the date of the receipt;
          [(2) submit to this applicant a written description 
        of the procedures required by this section, the 
        responsibilities of the Secretary and of other 
        departments and agenices with respect to the 
        application and the rights of the applicant;
          [(3) return the application without action if the 
        application is improperly completed or if additional 
        information is required, with sufficient information to 
        permit the application to be properly resubmitted, in 
        which case of such application is resubmitted, it shall 
        be treated as a new application for the purpose of 
        calculating the time periods prescribed in this 
        section;
          [(4) determine whether it is necessary to refer the 
        application to any other department or agency and, if 
        such referral is determined to be necessary, inform the 
        applicant of any such department or agency to which the 
        application will be referred; and
          [(5) determine whether it is necessary to submit the 
        application to a multilateral review process, pursuant 
        to a multilateral agreement, formal or informal, to 
        which the United States is a part and, if so inform the 
        applicant of this requirement.
  [(c) Action on Certain Applications.--Except as provided in 
subsection (o), in each case in which the Secretary determines 
that it is not necessary to refer an application to any other 
department or agency for its information and recommendations, a 
license shall be formally issued or denied within 60 days after 
a properly completed application has been submited pursuant to 
this section.
  [(d) Referral to Other Departments and Agencies.--Except in 
the case of exports described in subsection (o), in each case 
in which the Secretary determines that it is necessary to refer 
an application to any other department or agency for its 
information and recommendations, the Secretary shall, within 20 
days after the submission of a properly completed application--
          [(1) refer the application, together with all 
        necessary analysis and recommendations of the 
        Department of Commerce, concurrently to all such 
        departments or agencies; and
          [(2) if the applicant so requests, provide the 
        applicant with an opportunity to review for accuracy 
        any documentation to be referred to any such department 
        or agency with respect to such application for the 
        purpose of describing the export in question in order 
        to determine whether such documentation accurately 
        describes the proposed export.
Notwithstanding the 10-day period set forth in subsection (b), 
in the case of exports described in subsection (o), in each 
case in which the Secretary determines that it is necessary to 
refer an application to any other department or agency for its 
information and recommendations, the Secretary shall, 
immediately upon receipt of the properly completed application, 
refer the application to such department or agency for its 
review. Such review shall be concurrent with that of the 
Department of Commerce.
  [(e) Action by Other Departments and Agencies.--(1) Any 
department or agency to which an application is referred 
pursuant to subsection (d) shall submit to the Secretary the 
information or recommendations requested with respect to the 
application. The information or recommendations shall be 
submitted within 20 days after the department or agency 
receives the application or, in the case of exports described 
in subsection (o), before the expiration of the time periods 
permitted by that subsection. Except as provided in paragraph 
(2), any such department or agency which does not submit its 
recommendations within the time period prescribed in the 
preceding sentence shall be deemed by the Secretary to have no 
objection to the approval of such application.
  [(2)(A) Except in the case of exports described in subsection 
(o), if the head of any such department or agency notifies the 
Secretary before the expiration of the time period provided in 
paragraph (1) for submission of its recommendations that more 
time is required for review by such department or agency, such 
department or agency shall have an additional 20-day period to 
submit its recommendations to the Secretary. If such department 
or agency does not submit its recommendations within the time 
period prescribed by the preceding sentence, it shall be deemed 
by the Secretary to have no objection to the approval of such 
application.
  [(B) In the case of exports described in subsection (o), if 
the head of any such department or agency notifies the 
Secretary, before the expiration of the 15-day period provided 
in subsection (o)(1), that more time is required for review by 
such department or agency, the Secretary shall notify the 
applicant, pursuant to subsection (o)(1)(C), that additional 
time is required to consider the application, and such 
department or agency shall have additional time to consider the 
application within the limits permitted by subsection (o)(2). 
If such department or agency does not submit its 
recommendations within the time periods permitted under 
subsection (o), it shall be deemed by the Secretary to have no 
objection to the approval of such application.
  [(f) Action by the Secretary.--(1) Within 60 days after 
receipt of the recommendations of other departments and 
agencies with respect to a license application, as provided in 
subsection (e), the Secretary shall formally issue or deny the 
license. In deciding whether to issue or deny a license, the 
Secretary shall take into account any recommendation of a 
department or agency with respect to the application in 
question. In cases where the Secretary receives conflicting 
recommendations, the Secretary shall, within the 60-day period 
provided for in this subsection, take such action as may be 
necessary to resolve such conflicting recommendations. The 
provisions of this paragraph shall not apply in the case of 
exports described in subsection (o).
  [(2) In cases where the Secretary receives questions or 
negative considerations or recommendations from any other 
department or agency with respect to an application, the 
Secretary shall, to the maximum extent consistent with the 
national security and foreign policy of the United States, 
inform the applicant in writing of the specific questions 
raised and any such negative considerations or recommendations. 
Before a final determination with respect to the application is 
made, the applicant shall be entitled--
          [(A) to respond in writing to such questions, 
        considerations, or recommendations within 30 days after 
        receipt of such information from the Secretary; and
          [(B) upon the filing of a written request with the 
        Secretary within 15 days after the receipt of such 
        information, to respond in person to the department or 
        agency raising such questions, considerations, or 
        recommendations.
The provisions of this paragraph shall not apply in the case of 
exports described in subsection (o).
  [(3) In cases where the Secretary has determined that an 
application should be denied, the applicant shall be informed 
in writing, within 5 days after such determination is made, 
of--
          [(A) the determination,
          [(B) the statutory basis for the proposed denial,
          [(C) the policies set forth in section 3 of this Act 
        which would be furthered by the proposed denial,
          [(D) what if any modifications in or restrictions on 
        the goods or technology for which the license was 
        sought would allow such export to be compatible with 
        export controls imposed under this Act,
          [(E) which officers and employees of the Department 
        of Commerce who are familar with the application will 
        be made reasonably available to the applicant for 
        considerations with regard to such modifications or 
        restrictions, if appropriate,
          [(F) to the extent consistent with the national 
        security and foreign policy of the United States, the 
        specific considerations which led to the determination 
        to deny the application, and
          [(G) the availability of appeal procedures.
The Secretary shall allow the applicant at least 30 days to 
respond to the Secretary's determination before the license 
application is denied. In the event decisions on license 
applications are deferred inconsistent with the provisions of 
this section, the applicant shall be so informed in writing 
within 5 days after such deferral.
  [(4) If the Secretary determines that a particular 
application or set of applications is of exceptional importance 
and complexity, and that additional time is required for 
negotiations to modify the application or applications, the 
Secretary may extend any time period prescribed in this 
section. The Secretary shall notify the Congress and the 
applicant of such extension and the reasons therefor. The 
provisions of this paragraph shall not apply in the case of 
exports described in subsection (o).
  [(g) Special Procedures for Secretary of Defense.--(1) 
Notwithstanding any other provision of this section, the 
Secretary of Defense is authorized to review any proposed 
export of any goods or technology to any country to which 
exports are controlled for national security purposes and, 
whenever the Secretary of Defense determines that the export of 
such goods or technology will make a significant contribution, 
which would prove detrimental to the national security of the 
United States, to the military potential of any such country, 
to recommend to the President that such export be disapproved.
  [(2) Notwithstanding any other provision of law, the 
Secretary of Defense shall determine, in consultation with the 
Secretary, and confirm in writing the types and categories of 
transactions which should be reviewed by the Secretary of 
Defense in order to make a determination referred to in 
paragraph (1). Whenever a license or other authority is 
requested for the export to any country to which exports are 
controlled for national security purposes of goods or 
technology within any such type or category, the Secretary 
shall notify the Secretary of Defense of such request, and the 
Secretary may not issue any license or other authority pursuant 
to such request before the expiration of the period within 
which the President may disapprove such export. The Secretary 
of Defense shall carefully consider any notification submitted 
by the Secretary pursuant to this paragraph and, not later than 
20 days after notification of the request, shall--
          [(A) recommend to the President and the Secretary 
        that he disapprove any request for the export of the 
        goods or technology involved to the particular country 
        if the Secretary of Defense determines that the export 
        of such goods or technology will make a significant 
        contribution, which would prove detrimental to the 
        national security of the United States, to the military 
        potential of such country or any other country;
          [(B) notify the Secretary that he would recommend 
        approval subject to specified conditions; or
          [(C) recommend to the Secretary that the export of 
        goods or technology be approved.
Whenever the Secretary of Defense makes a recommendation to the 
President pursuant to paragraph (2)(A), the Secretary shall 
also submit his recommendation to the President on the request 
to export if the Secretary differs with the Secretary of 
Defense. If the President notifies the Secretary, within 20 
days after receiving a recommendation from the Secretary of 
Defense, that he disapproves such export, no license or other 
authority may be issued for the export of such goods or 
technology to such country. If the Secretary of Defense fails 
to make a recommendation or notification under this paragraph 
within the 20-day period specified in the third sentence, or if 
the President, within 20 days after receiving a recommendation 
from the Secretary of Defense with respect to an export, fails 
to notify the Secretary that he approves or disapproves the 
export, the Secretary shall approve or deny the request for a 
license or other authority to export without such 
recommendation or notification.
  [(3) The Secretary shall approve or disapprove a license 
application, and issue or deny a license, in accordance with 
the provisions of this subsection, and, to the extent 
applicable, in accordance with the time periods and procedures 
otherwise set forth in this section.
  [(h) Multilateral Controls.--In any case in which an 
application, which has been finally approved under subsection 
(c), (f), or (g) of this section, is required to be submitted 
to a multilateral review process, pursuant to a multilateral 
agreement, formal or informal, to which the United States is a 
party, the license shall not be issued as prescribed in such 
subsections, but the Secretary shall notify the applicant of 
the approval of the application (and the date of such approval) 
by the Secretary subject to such multilateral review. The 
license shall be issued upon approval of the application under 
such multilateral review. If such multilateral review has not 
resulted in a determination with respect to the application 
within 40 days after such date, the Secretary's approval of the 
license shall be final and the license shall be issued, unless 
the Secretary determines that issuance of the license would 
prove detrimental to the national security of the United 
States. At the time at which the Secretary makes such a 
determination, the Secretary shall notify the applicant of the 
determination and shall notify the Congress of the 
determination, the reasons for the determination, the reasons 
for which the multilateral review could not be concluded within 
such 40-day period, and the actions planned or being taken by 
the United States Government to secure conclusion of the 
multilateral review. At the end of every 40-day period after 
such notification to Congress, the Secretary shall advise the 
applicant and the Congress of the status of the application, 
and shall report to the Congress in detail on the reasons for 
the further delay and any further actions being taken by the 
United States Government to secure conclusion of the 
multilateral review. In addition, at the time at which the 
Secretary issues or denies the license upon conclusion of the 
multilateral review, the Secretary shall notify the Congress of 
such issuance or denial and of the total time required for the 
multilateral review.
  [(i) Records.--The Secretary and any department or agency to 
which any application is referred under this section shall keep 
accurate records with respect to all applications considered by 
the Secretary or by any such department or agency, including, 
in the case of the Secretary, any dissenting recommendations 
received from any such department or agency.
  [(j) Appeal and Court Action.--(1) The Secretary shall 
establish appropriate procedures for any applicant to appeal to 
the Secretary the denial of an export license application of 
the applicant.
  [(2) 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)(4) 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) 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 a restraining order, a 
temporary or permanent injunction, or other appropriate relief, 
to require compliance with the requirements of this section. 
The United States district courts shall have jurisdiction to 
provide such relief, as appropriate.
  [(k) Changes in Requirements for Applications.--Except as 
provided in subsection (b)(3) of this section, in any case in 
which, after a license application is submitted, the Secretary 
changes the requirements for such a license application, the 
Secretary may request appropriate additional information of the 
applicant, but the Secretary may not return the application to 
the applicant without action because it fails to meet the 
changed requirements.
  [(l) Other Inquiries.--(1) In any case in which the Secretary 
receives a written request asking for the proper classification 
of a good or technology on the control list, the Secretary 
shall, within 10 working days after receipt of the request, 
inform the person making the request of the proper 
classification.
  [(2) In any case in which the Secretary receives a written 
request for information about the applicability of export 
license requirements under this Act to a proposed export 
transaction or series of transactions, the Secretary shall, 
within 30 days after receipt of the request, reply with that 
information to the person making the request.
  [(m) Small Business Assistance.--Not later than 120 days 
after the date of the enactment of this subsection, the 
Secretary shall develop and transmit to the Congress a plan to 
assist small businesses in the export licensing application 
process under this Act. The plan shall include, among other 
things, arrangements for counseling small businesses on filing 
applications and identifying goods or technology on the control 
list, proposals for seminars and conferences to educate small 
businesses on export controls and licensing procedures, and the 
preparation of informational brochures. The Secretary shall, 
not later than 120 days after the date of the enactment of the 
Export Enhancement Act of 1988, report to the Congress on steps 
taken to implement the plan developed under this subsection to 
assist small businesses in the export licensing application 
process.
  [(n) Reports on License Applications.--(1) Not later than 180 
days after the date of the enactment of this subsection, and 
not later than the end of each 3-month period thereafter, the 
Secretary shall submit to the Committee on Foreign Affairs of 
the House of Representatives and to the Committee on Banking, 
Housing, and Urban Affairs of the Senate a report listing--
          [(A) all applications on which action was completed 
        during the preceding 3-month period and which required 
        a period longer than the period permitted under 
        subsection (c), (f)(1), or (h) of this section, as the 
        case may be, before notification of a decision to 
        approve or deny the application was sent to the 
        applicant; and
          [(B) in a separate section, all applications which 
        have been in process for a period longer than the 
        period permitted under subsection (c), (f)(1), or (h) 
        of this section, as the case may be, and upon which 
        final action has not been taken.
  [(2) With regard to each application, each listing shall 
identify--
          [(A) the application case number;
          [(B) the value of the goods or technology to which 
        the application relates;
          [(C) the country of destination of the goods or 
        technology;
          [(D) the date on which the application was received 
        by the Secretary;
          [(E) the date on which the Secretary approved or 
        denied the application;
          [(F) the date on which the notification of approval 
        or denial of the application was sent to the applicant; 
        and
          [(G) the total number of days which elapsed between 
        receipt of the application, in its properly completed 
        form, and the earlier of the last day of the 3-month 
        period to which the report relates, or the date on 
        which notification of approval or denial of the 
        application was sent to the applicant.
  [(3) With respect to an application which was referred to 
other departments or agencies, the listing shall also include--
          [(A) the departments or agencies to which the 
        application was referred;
          [(B) the date or dates of such referral; and
          [(C) the date or dates on which recommendations were 
        received from those departments or agencies.
  [(4) With respect to an application referred to any other 
department or agency which did not submit or has not submitted 
its recommendations on the application within the period 
permitted under subsection (e) of this section to submit such 
recommendations, the listing shall also include--
          [(A) the office responsible for processing the 
        application and the position of the officer responsible 
        for the office; and
          [(B) the period of time that elapsed before the 
        recommendations were submitted or that has elapsed 
        since referral of the application, as the case may be.
  [(5) Each report shall also provide an introduction which 
contains--
          [(A) summary of the number of applications described 
        in paragraph (1) (A) and (B) of this subsection, and 
        the value of the goods or technology involved in the 
        applications, grouped according to--
                  [(i) the number of days which elapsed before 
                action on the applications was completed, or 
                which has elapsed without action on the 
                applications being completed, as follows: 61 to 
                75 days, 76 to 90 days, 91 to 105 days, 106 to 
                120 days, and more than 120 days; and
                  [(ii) the number of days which elapsed before 
                action on the applications was completed, or 
                which has elapsed without action on the 
                applications being completed, beyond the period 
                permitted under subsection (c), (f)(1), or (h) 
                of this section for the processing of 
                applications, as follows: not more than 15 
                days, 16 to 30 days, 31 to 45 days, 46 to 60 
                days, and more than 60 days; and
          [(B) a summary by country of destination of the 
        number of applications described in paragraph (1) (A) 
        and (B) of this subsection, and the value of the goods 
        or technology involved in applications, on which action 
        was not completed within 60 days.
  [(o) Exports to Members of Coordinating Committee.--(1) 
Fifteen working days after the date of formal filing with the 
Secretary of an individual validated license application for 
the export of goods or technology to a country that maintains 
export controls on such goods or technology pursuant to the 
agreement of the governments participating in the group known 
as the coordinating Committee, a license for the transaction 
specified in the application shall become valid and effective 
and the goods or technology are authorized for export pursuant 
to such license unless--
          [(A) the application has been otherwise approved by 
        the Secretary, in which case it shall be valid and 
        effective according to the terms of the approval;
          [(B) the application has been denied by the Secretary 
        pursuant to this section and the applicant has been so 
        informed, or the applicant has been informed, pursuant 
        to subsection (f)(3) of this section, that the 
        application should be denied; or
          [(C) the Secretary requires additional time to 
        consider the application and the applicant has been so 
        informed.
  [(2) In the event that the Secretary notifies an applicant 
pursuant to paragraph (1)(C) that the Secretary notifies an 
applicant pursuant to paragraph (1)(C) that more time is 
required to consider an individual validated license 
application, a license for the transaction specified in the 
application shall become valid and effective and the goods or 
technology are authorized for export pursuant to such license 
30 working days after the date that such license application 
was formally filed with the Secretary unless--
          [(A) the application has been otherwise approved by 
        the Secretary, in which case it shall be valid and 
        effective according to the terms of the approval; or
          [(B) the application has been denied by the Secretary 
        pursuant to this section and the applicant has been so 
        informed, or the applicant has been informed, pursuant 
        to subsection (f)(3) of this section, that the 
        application should be denied.
  [(3) In reviewing an individual license application subject 
to this subsection, the Secretary shall evaluate the 
information set forth in the application and the reliability of 
the end-user.
  [(4) Nothing in this subsection shall affect the scope or 
availability of licenses authorizing multiple exports set forth 
in section 4(a)(2) of this Act.
  [(5) The provisions of this subsection shall take effect 4 
months after the date of the enactment of the Export 
Administration Amendments Act of 1985.

                              [violations

  [Sec. 11. (a) In General.--Except as provided in subsection 
(b) of this section, whoever knowingly violates or conspires to 
or attempts to violate any provision of this Act or any 
regulation, order, or license issued thereunder shall be fined 
not more than five times the value of the exports involved or 
$50,000, whichever is greater, or imprisoned not more than 5 
years, or both.
  [(b) Willful Violations.--(1) Whoever willfully violates or 
conspires to or attempts to violate any provision of this Act 
or any regulation, order, or license issued thereunder, with 
knowledge that the exports involved will be used for the 
benefit of, or that the destination or intended destination of 
the goods or technology involved is, any controlled country or 
any country to which exports are controlled for foreign policy 
purposes--
          [(A) except in the case of an individual, shall be 
        fined not more than five times the value of the exports 
        involved or $1,000,000, whichever is greater; and
          [(B) in the case of an individual, shall be fined not 
        more than $250,000, or imprisoned not more than 10 
        years, or both.
  [(2) Any person who is issued a validated license under this 
Act for the export of any good or technology to a controlled 
country and who, with knowledge that such a good or technology 
is being used by such controlled country for military or 
intelligence gathering purposes contrary to the conditions 
under which the license was issued, willfully fails to report 
such use of the Secretary of Defense--
          [(A) except in the case of an individual, shall be 
        fined not more than five times the value of the exports 
        involved or $1,000,000, whichever is greater; and
          [(B) in the case of an individual, shall be fined not 
        more than $250,000, or imprisoned not more than 5 
        years, or both.
  [(3) Any person who possesses any goods or technology--
          [(A) with the intent to export such goods or 
        technology in violation of an export control imposed 
        under section 5 or 6 of this Act or any regulation, 
        order, or license issued with respect to such control, 
        or
          [(B) knowing or having reason to believe that the 
        goods or technology would be so exported,
shall, in the case of a violation of an export control imposed 
under section 5 (or any regulation, order, or license issued 
with respect to such control), be subject to the penalties set 
forth in paragraph (1) of this subsection and shall, in the 
case of a violation of an export control imposed under section 
6 (or any regulation, order, or license issued with respect to 
such control), be subject to the penalties set forth in 
subsection (a).
  [(4) Any person who takes any action with the intent to evade 
the provisions of this act or any regulation, order, or license 
issued under this Act shall be subject to the penalties set 
forth in subsection (a), except that in the case of an evasion 
of an export control imposed under section 5 or 6 of this act 
(or any regulation, order, or license issued with respect to 
such control), such person shall be subject to the penalties 
set forth in paragraph (1) of this subsection.
  [(5) Nothing in this subsection or subsection (a) shall limit 
the power of the Secretary to define by regulations violations 
under this Act.
  [(c) Civil Penalties; Administrative Sanctions.--(1) The 
Secretary (and officers and employees of the Department of 
Commerce specifically designated by the Secretary) may impose a 
civil penalty not to exceed $10,000 for each violation of this 
Act or any regulation, order, or license issued under this act, 
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 involving national security controls 
imposed under section 5 of this Act or controls imposed on the 
export of defense articles and defense services under section 
38 of the Arms Export Control Act may not exceed $100,000.
  [(2)(A) The authority under this Act to suspend or revoke the 
authority of any United States person to export goods or 
technology may be used with respect to any violation of the 
regulations issued pursuant to section 8(a) of this Act.
  [(B) Any administrative sanction (including any civil penalty 
or any suspension or revocation of authority to export) imposed 
under this Act for a violation of the regulations issued 
pursuant to section 8(a) of this Act 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.
  [(C) Any charging letter or other document initiating 
administrative proceedings for the imposition of sanctions for 
violations of the regulations issued pursuant to section 8(a) 
of this Act shall be made available for public inspection and 
copying.
  [(3) An exception may not be made to any order issued under 
this Act which revokes the authority of a United States person 
to export goods or technology unless the Committee on Foreign 
Affairs of the House of Representatives and the Committee on 
Banking, Housing, and Urban Affairs of the Senate are first 
consulted concerning the exception.
  [(4) The President may by regulation provide standards for 
establishing levels of civil penalty provided in this 
subsection based upon the seriousness of the violation, the 
culpability of the violator, and the violator's record of 
cooperation with the Government in disclosing the violation.
  [(d) Payment of Penalties.--The payment of any penalty 
imposed pursuant to subsection (c) may be made a condition, for 
a period not exceeding one year after the imposition of such 
penalty, 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 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 one year) that may be imposed upon such person. Such a 
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 penalty 
imposed pursuant to subsection (c), or any amounts realized 
from the forefeiture of any property interest or proceeds 
pursuant to subsection (g), shall be covered into the Treasury 
as a miscellaneous receipt. The head of the department or 
agency concerned may, in his discretion, refund any such 
penalty imposed pursuant to 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) Actions for Recovery of Penalties.--In the event of the 
failure of any person to pay a penalty imposed pursuant to 
subsection (c) a civil action for the recovery thereof may, in 
the discretion of the head of the department or agency 
concerned, be brought in the name of the United States. In any 
such action the court shall determine de novo all issues 
necessary to the establishment of liability. Except as provided 
in this subsection and in subsection (d), no such liabilty 
shall be asserted, claimed, or recovered upon by the United 
States in any way unless it has previously been reduced to 
judgment.
  [(g) Forfeiture of Property Interest and Proceeds.--(1) Any 
person who is convicted under subsection (a) or (b) of a 
violation of an export control imposed under section 5 of this 
Act (or any regulation, order, or license issued with respect 
to such control) shall, in addition to any other penalty, 
forfeit to the United States--
          [(A) any of that person's interest in, security of, 
        claim against, or property or contractual rights of any 
        kind in the goods 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) The procedures in any forfeiture under this subsection, 
and the duties and authority of the courts of the United States 
and the Attorney General with respect to any forfeiture action 
under this subsection or with respect to any property that may 
be subject to forfeiture under this subsection, shall be 
governed by the provisions of section 1963 of title 18, United 
States Code.
  [(h) Prior Convictions.--(1) No person convicted of a 
violation of this Act (or any regulation, license, or order 
issued under this Act), any regulation, license, or order 
issued under the International Emergency Economic Powers Act, 
section 793, 794, or 798 of title 18, United States Code, 
section 4(b) on the Internal Security Act of 1950 (50 U.S.C. 
783(b)), or section 38 of the Arms Export Control Act (22 
U.S.C. 2778) shall be eligible, at the discretion of the 
Secretary, to apply for or use any export license under this 
Act for a period of up to 10 years from the date of the 
conviction. The Secretary may revoke any export license under 
this Act in which such person has an interest at the time of 
the conviction.
  [(2) 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 law set forth in paragraph 
(1), upon a showing of such relationship with the convicted 
party, and subject to the procedures set forth in section 13(c) 
of this Act.
  [(i) Other Authorities.--Nothing in subsection (c), (d), (f), 
(g), or (h) limits--
          [(1) the availability of other administrative or 
        judicial remedies with respect to violations of this 
        Act, or any regulation, order, or license issued under 
        this Act;
          [(2) the authority to compromise and settle, 
        administrative proceedings brought with respect to 
        violations of this Act, or any regulation, order, or 
        license issued under this Act; 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)).

                [multilateral export control violations

  [Sec. 11A. (a) Determination by the President.--The 
President, subject to subsection (c), shall apply sanctions 
under subsection (b) for a period of not less than 2 years and 
not more than 5 years, if the President determines that--
          [(1) a foreign person has violated any regulation 
        issued by a country to control exports for national 
        security purposes pursuant to the agreement of the 
        group known as the Coordinating Committee, and
          [(2) such violation has resulted in substantial 
        enhancement of Soviet and East bloc capabilities in 
        submarine or antisubmarine warfare, ballistic or 
        antiballistic missile technology, strategic aircraft, 
        command, control, communications and intelligence, or 
        other critical technologies as determined by the 
        President, on the advice of the National Security 
        Council, to represent a serious adverse impact on the 
        strategic balance of forces.
The President shall notify the Congress of each action taken 
under this section. This section, except subsections (h) and 
(j), applies only to violations that occur after the date of 
the enactment of the Export Enhancement Act of 1988.
  [(b) Sanctions.--The sanctions referred to in subsection (a) 
shall apply to the foreign person committing the violation, as 
well as to any parent, affiliate, subsidiary, and successor 
entity of the foreign person, and, except as provided in 
subsection (c), are as follows:
          [(1) a prohibition on contracting with, and 
        procurement of products and services from, a sanctioned 
        person, by any department, agency, or instrumentality 
        of the United States Government, and
          [(2) a prohibition on importation into the United 
        States of all products produced by a sanctioned person.
  [(c) Exceptions.--The President shall not apply sanctions 
under this section--
          [(1) in the case of procurement of defense articles 
        or defense services--
                  [(A) under existing contracts or 
                subcontracts, including the exercise of options 
                for production quantities to satisfy United 
                States operational military requirements;
                  [(B) if the President determines that the 
                foreign person or other entity to which the 
                sanctions would otherwise be applied is a sole 
                source supplier of essential defense articles 
                or services and no alternative supplier can be 
                identified; or
                  [(C) if the President determines that such 
                articles or services are essential to the 
                national security under defense coproduction 
                agreements; or
          [(2) to--
                  [(A) products or services provided under 
                contracts or other binding agreements (as such 
                terms are defined by the President in 
                regulations) entered into before the date on 
                which the President notifies the Congress of 
                the intention to impose the sanctions;
                  [(B) spare parts;
                  [(C) component parts, but not finished 
                products, essential to United States products 
                or production;
                  [(D) routine servicing and maintenance of 
                products; or
                  [(E) information and technology.
  [(d) Exclusion.--The President shall not apply sanctions 
under this section to a parent, affiliate, subsidiary, and 
successor entity of a foreign person if the President 
determines that--
          [(1) the parent, affiliate, subsidiary, or successor 
        entity (as the case may be) has not knowingly violated 
        the export control regulation violated by the foreign 
        person, and
          [(2) the government of the country with jurisdiction 
        over the parent, affiliate, subsidiary, or successor 
        entity had in effect, at the time of the violation by 
        the foreign person, an effective export control system 
        consistent with principles agreed to in the 
        Coordinating Committee, including the following:
                  [(A) national laws providing appropriate 
                civil and criminal penalties and statutes of 
                limitations sufficient to deter potential 
                violations;
                  [(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 goods and technology; 
                and
                  [(E) procedures for the coordination and 
                exchange of information concerning violations 
                of the agreement of the Coordinating Committee.
  [(e) Definitions.--For purposes of this section--
          [(1) the term ``component part'' means any article 
        which is not usable for its intended functions without 
        being imbedded in or integrated into any other product 
        and which, if used in production of a finished product, 
        would be substantially transformed in that process;
          [(2) the term ``finished product'' means any article 
        which is usable for its intended functions without 
        being imbedded or integrated into any other product, 
        but in no case shall such term be deemed to include an 
        article produced by a person other than a sanctioned 
        person that contains parts or components of the 
        sanctioned person if the parts or components have been 
        substantially transformed during production of the 
        finished product; and
          [(3) the term ``sanctioned person'' means a foreign 
        person, and any parent, affiliate, subsidiary, or 
        successor entity of the foreign person, upon whom 
        sanctions have been imposed under this section.
  [(f) Subsequent Modifications of Sanctions.--The President 
may, after consultation with the Congress, limit the scope of 
sanctions applied to a parent, affiliate, subsidiary, or 
successor entity of the foreign person determined to have 
committed the violation on account of which the sanctions were 
imposed if the President determines that--
          [(1) the parent, affiliate, subsidiary, or successor 
        entity (as the case may be) has not, on the basis of 
        available evidence, itself violated the export control 
        regulation involved, either directly or through a 
        course of conduct;
          [(2) the government with jurisdiction over the 
        parent, affiliate, subsidiary, or successor entity has 
        improved its export control system as measured by the 
        criteria set forth in subsection (d)(2);
          [(3) the parent, affiliate, subsidiary, or successor 
        entity, has instituted improvements in internal 
        controls sufficient to detect and prevent violations of 
        the export control regime implemented under paragraph 
        (2); and
          [(4) the impact of the sanctions imposed on the 
        parent, affiliate, subsidiary, or successor entity is 
        proportionate to the increased defense expenditures 
        imposed on the United States.
Notwithstanding the preceding sentence, the President may not 
limit the scope of the sanction referred to in subsection 
(b)(1) with respect to the parent of the foreign person 
determined to have committed the violation, until that sanction 
has been in effect for at least 2 years.
  [(g) Reports to Congress.--The President shall include in the 
annual report submitted under section 14, a report on the 
status of any sanctions imposed under this section, including 
any exceptions, exclusions, or modifications of sanctions that 
have been applied under subsection (c), (d), or (f).
  [(h) Discretionary Imposition of Sanctions.--If the President 
determines that a foreign person has violated a regulation 
issued by a country to control exports for national security 
purposes pursuant to the agreement of the group known as the 
Coordinating Committee, but in a case in which subsection 
(a)(2) may not apply, the President may apply the sanctions 
referred to in subsection (b) against that foreign person for a 
period of not more than 5 years.
  [(i) Compensation for Diversion of Militarily Critical 
Technologies to Controlled Countries.--(1) In cases in which 
sanctions have been applied against a foreign person under 
subsection (a), the President shall initiate discussions with 
the foreign person and the government with jurisdiction over 
that foreign person regarding compensation on the part of the 
foreign person in an amount proportionate to the costs of 
research and development and procurement of new defensive 
systems by the United States and the allies of the United 
States to counteract the effect of the technological advance 
achieved by the Soviet Union as a result of the violation by 
that foreign person.
  [(2) The President shall, at the time that discussions are 
initiated under paragraph (1), report to the Congress that such 
discussions are being undertaken, and shall report to the 
Congress the outcome of those discussions.
  [(j) Other Actions by the President.--Upon making a 
determination under subsection (a) or (h), the President 
shall--
          [(1) initiate consultations with the foreign 
        government with jurisdiction over the foreign person 
        who committed the violation involved, in order to seek 
        prompt remedial action by that government;
          [(2) initiate discussions with the governments 
        participating in the Coordinating Committee regarding 
        the violation and means to ensure that similar 
        violations do not occur; and
          [(3) consult with and report to the Congress on the 
        nature of the violation and the actions the President 
        proposes to take, or has taken, to rectify the 
        situation.
  [(k) Damages for Certain Violations.--(1) In any case in 
which the President makes a determination under subsection (a), 
the Secretary of Defense shall determine the costs of restoring 
the military preparedness of the United States on account of 
the violation involved. The Secretary of Defense shall notify 
the Attorney General of his determination, and the Attorney 
General may bring an action for damages, in any appropriate 
district court of the United States, to recover such costs 
against the person who committed the violation, any person that 
is owned or controlled by the person who committed the 
violation, and any person who owns and controls the person who 
committed the violation.
  [(3) The total amount awarded in any case brought under 
paragraph (2) shall be determined by the court in light of the 
facts and circumstances, but shall not exceed the amount of the 
net loss to the national security of the United States. An 
action under this subsection shall be commenced not later than 
3 years after the violation occurs, or one year after the 
violation is discovered, whichever is later.
  [(l) Definition.--For purposes of this section, the term 
``foreign person'' means any person other than a United States 
person.

               [missile proliferation control violations

  [Sec. 11B. (a) Violations by United States Persons.--
          [(1) Sanctions.--(A) 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, section 5 or 6 of this Act, or any 
                regulations or orders issued under any such 
                provisions,
                  [(ii) conspires to or attempts to engage in 
                such export, transfer, or trade, or
                  [(iii) facilitates such export, transfer, or 
                trade by any other person,
        then the President shall impose the applicable 
        sanctions described in subparagraph (B).
          [(B) The sanctions which apply to a United States 
        person under subparagraph (A) are the following:
                  [(i) If the item on the MTCR Annex involved 
                in the export, transfer, or trade is missile 
                equipment or technology within category II of 
                the MTCR Annex, then the President shall deny 
                to such United States person, for a period of 2 
                years, licenses for the transfer of missile 
                equipment or technology controlled under this 
                Act.
                  [(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 
                Act.
          [(2) Discretionary sanctions.--In the case of any 
        determination referred to in paragraph (1), the 
        Secretary may pursue any other appropriate penalties 
        under section 11 of this Act.
          [(3) Waiver.--The President may waive the imposition 
        of sanctions under paragraph (1) on a person with 
        respect to a product or service if the President 
        certifies to the Congress that--
                  [(A) the product or service is essential to 
                the national security of the United States; and
                  [(B) such person is a sole source supplier of 
                the product or service, the product or service 
                is not available from any alternative reliable 
                supplier, and the need for the product or 
                service cannot be met in a timely manner by 
                improved manufacturing processes or 
                technological developments.
  [(b) Transfers of Missile Equipment or Technology by Foreign 
Persons.--
          [(1) Sanctions.--(A) Subject to paragraphs (3) 
        through (7), 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 MTCR adherent and would 
                be, if it were United States-origin equipment 
                or technology, subject to the jurisdiction of 
                the United States under this Act,
                  [(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 subparagraph (B).
          [(B) The sanctions which apply to a foreign person 
        under subparagraph (A) are the following:
                  [(i) If the item involved in the export, 
                transfer, or trade is within category II of the 
                MTCR Annex, then the President shall deny, for 
                a period of 2 years, licenses for the transfer 
                to such foreign person of missile equipment or 
                technology the export of which is controlled 
                under this Act.
                  [(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 
                Act.
                  [(iii) If, in addition to actions taken under 
                clauses (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 MTCR adherent, 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.
          [(2) Inapplicability with respect to mtcr 
        adherents.--Paragraph (1) does not apply with respect 
        to--
                  [(A) any export, transfer, or trading 
                activity that is authorized by the laws of an 
                MTCR adherent, if such authorization is not 
                obtained by misrepresentation or fraud; or
                  [(B) any export, transfer, or trade of an 
                item to an end user in a country that is an 
                MTCR adherent.
          [(3) Effect of enforcement actions by mtcr 
        adherents.--Sanctions set forth in paragraph (1) may 
        not be imposed under this subsection on a person with 
        respect to acts described in such paragraph or, if such 
        sanctions are in effect against a person on account of 
        such acts, such sanctions shall be terminated, if an 
        MTCR adherent is taking judicial or other enforcement 
        action against that person with respect to such acts, 
        or that person has been found by the government of an 
        MTCR adherent to be innocent of wrongdoing with respect 
        to such acts.
          [(4) Advisory opinions.--The 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 subsection. 
        Any person who relies in good faith on such an advisory 
        opinion which states that the proposed activity would 
        not subject a person to such sanctions, and any person 
        who thereafter engages in such activity, may not be 
        made subject to such sanctions on account of such 
        activity.
          [(5) Waiver and report to congress.--(A) In any case 
        other than one in which an advisory opinion has been 
        issued under paragraph (4) stating that a proposed 
        activity would not subject a person to sanctions under 
        this subsection, the President may waive the 
        application of paragraph (1) to a foreign person if the 
        President determines that such waiver is essential to 
        the national security of the United States.
          [(B) In the event that the President decides to apply 
        the waiver described in subparagraph (A), the President 
        shall so notify the Congress not less than 20 working 
        days before issuing the waiver. Such notification shall 
        include a report fully articulating the rationale and 
        circumstances which led the President to apply the 
        waiver.
          [(6) Additional waiver.--The President may waive the 
        imposition of sanctions under paragraph (1) on a person 
        with respect to a product or service if the President 
        certifies to the Congress that--
                  [(A) the product or service is essential to 
                the national security of the United States; and
                  [(B) such person is a sole source supplier of 
                the product or service, the product or service 
                is not available from any alternative reliable 
                supplier, and the need for the product or 
                service cannot be met in a timely manner by 
                improved manufacturing processes or 
                technological developments.
          [(7) Exceptions.--The President shall not apply the 
        sanction under this subsection prohibiting the 
        importation of the products of a foreign person--
                  [(A) in the case of procurement of defense 
                articles or defense services--
                          [(i) under existing contracts or 
                        subcontracts, including the exercise of 
                        options for production quantities to 
                        satisfy requirements essential to the 
                        national security of the United States;
                          [(ii) if the President determines 
                        that the person to which the sanctions 
                        would be applied is a sole source 
                        supplier of the defense articles and 
                        services, that the defense articles or 
                        services are essential to the national 
                        security of the United States, and that 
                        alternative sources are not readily or 
                        reasonably available; or
                          [(iii) if the President determines 
                        that such articles or services are 
                        essential to the national security of 
                        the United States under defense 
                        coproduction agreements or NATO 
                        Programs of Cooperation;
                  [(B) to products or services provided under 
                contracts entered into before the date on which 
                the President publishes his intention to impose 
                the sanctions; or
                  [(C) to--
                          [(i) spare parts,
                          [(ii) component parts, but not 
                        finished products, essential to United 
                        States products or production,
                          [(iii) routine services and 
                        maintenance of products, to the extent 
                        that alternative sources are not 
                        readily or reasonably available, or
                          [(iv) information and technology 
                        essential to United States products or 
                        production.
  [(c) Definitions.--For purposes of this section and 
subsection (k) and (l) of section 6--
          [(1) the term ``missile'' means a category I system 
        as defined in the MTCR Annex, and any other unmanned 
        delivery system of similar capability, as well as the 
        specially designed production facilities for these 
        systems;
          [(2) the term ``Missile Technology Control Regime'' 
        or ``MTCR'' means the policy statement, between the 
        United States, the United Kingdom, the Federal Republic 
        of Germany, France, Italy, Canada, and Japan, announced 
        on April 16, 1987, to restrict sensitive missile-
        relevant transfers based on the MTCR Annex, and any 
        amendments thereto;
          [(3) the term ``MTCR adherent'' means a country that 
        participates in the MTCR or that, pursuant to an 
        international understanding to which the United States 
        is a party, controls MTCR equipment or technology in 
        accordance with the criteria and standards set forth in 
        the MTCR;
          [(4) the term ``MTCR Annex'' means the Guidelines and 
        Equipment and Technology Annex of the MTCR, and any 
        amendments thereto;
          [(5) 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;
          [(6) the term ``foreign person'' means any person 
        other than a United States person;
          [(7)(A) 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
          [(B) in the case of countries where it may be 
        impossible to identify a specific governmental entity 
        referred to in subparagraph (A), 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
          [(8) 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.

        [chemical and biological weapons proliferation sanctions

  [Sec. 11C. (a) Imposition of Sanctions.--
          [(1) Determination by the president.--Except as 
        provided in subsection (b)(2), the President shall 
        impose both of the sanctions described in subsection 
        (c) if the President determines that a foreign person, 
        on or after the date of the enactment of this section, 
        has knowingly and materially contributed--
                  [(A) through the export from the United 
                States of any goods or technology that are 
                subject to the jurisdiction of the United 
                States under this Act, or
                  [(B) 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 Act,
        to the efforts by any foreign country, project, or 
        entity described in paragraph (2) to use, develop, 
        produce, stockpile, or otherwise acquire chemical or 
        biological weapons.
          [(2) Countries, projects, or entities receiving 
        assistance.--Paragraph (1) applies in the case of--
                  [(A) any foreign country that the President 
                determines has, at any time after January 1, 
                1980--
                          [(i) used chemical or biological 
                        weapons in violation of international 
                        law;
                          [(ii) used lethal chemical or 
                        biological weapons against its own 
                        nationals; or
                          [(iii) made substantial preparations 
                        to engage in the activities described 
                        in clause (i) or (ii);
                  [(B) any foreign country whose government is 
                determined for purposes of section 6(j) of this 
                Act to be a government that has repeatedly 
                provided support for acts of international 
                terrorism; or
                  [(C) any other foreign country, project, or 
                entity designated by the President for purposes 
                of this section.
          [(3) Persons against which sanctions are to be 
        imposed.--Sanctions shall be imposed pursuant to 
        paragraph (1) on--
                  [(A) the foreign person with respect to which 
                the President makes the determination described 
                in that paragraph;
                  [(B) any successor entity to that foreign 
                person;
                  [(C) 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
                  [(D) 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.
  [(b) Consultations With and Actions by Foreign Government of 
Jurisdiction.--
          [(1) Consultations.--If the President makes the 
        determinations described in subsection (a)(1) with 
        respect to a foreign person, the Congress urges the 
        President to initiate consultations immediately with 
        the government with primary jurisdiction over that 
        foreign person with respect to the imposition of 
        sanctions pursuant to this section.
          [(2) Actions by government of jurisdiction.--In order 
        to pursue such consultations with that government, the 
        President may delay imposition of sanctions pursuant to 
        this section 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 subsection (a)(1). 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.
          [(3) Report to congress.--The President shall report 
        to the Congress, not later than 90 days after making a 
        determination under subsection (a)(1), on the status of 
        consultations with the appropriate government under 
        this subsection, and the basis for any determination 
        under paragraph (2) of this subsection that such 
        government has taken specific corrective actions.
  [(c) Sanctions.--
          [(1) Description of sanctions.--The sanctions to be 
        imposed pursuant to subsection (a)(1) are, except as 
        provided in paragraph (2) of this subsection, the 
        following:
                  [(A) 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 
                subsection (a)(3).
                  [(B) Import sanctions.--The importation into 
                the United States of products produced by any 
                person described in subsection (a)(3) shall be 
                prohibited.
          [(2) Exceptions.--The President shall not be required 
        to apply or maintain sanctions under this section--
                  [(A) in the case of procurement of defense 
                articles or defense services--
                          [(i) under existing contracts or 
                        subcontracts, including the exercise of 
                        options for production quantities to 
                        satisfy United States operational 
                        military requirements;
                          [(ii) if the President determines 
                        that the person or other entity to 
                        which the sanctions would otherwise be 
                        applied is a sole source supplier of 
                        the defense articles or services, that 
                        the defense articles or services are 
                        essential, and that alternative sources 
                        are not readily or reasonably 
                        available; or
                          [(iii) if the President determines 
                        that such articles or services are 
                        essential to the national security 
                        under defense coproduction agreements;
                  [(B) to products or services provided under 
                contracts entered into before the date on which 
                the President publishes his intention to impose 
                sanctions;
                  [(C) to--
                          [(i) spare parts,
                          [(ii) component parts, but not 
                        finished products, essential to United 
                        States products or production, or
                          [(iii) routine servicing and 
                        maintenance of products, to the extent 
                        that alternative sources are not 
                        readily or reasonably available;
                  [(D) to information and technology essential 
                to United States products or production; or
                  [(E) to medical or other humanitarian items.
  [(d) Termination of Sanctions.--The sanctions imposed 
pursuant to this section 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 subsection (a)(1) has ceased to aid or abet any 
foreign government, project, or entity in its efforts to 
acquire chemical or biological weapons capability as described 
in that subsection.
  [(e) Waiver.--
          [(1) Criterion for waiver.--The President may waive 
        the application of any sanction imposed on any person 
        pursuant to this section, after the end of the 12-month 
        period beginning on the date on which that sanction was 
        imposed on that person, if the President determines and 
        certifies to the Congress that such waiver is important 
        to the national security interests of the United 
        States.
          [(2) Notification of and report to congress.--If the 
        President decides to exercise the waiver authority 
        provided in paragraph (1), the President shall so 
        notify the Congress not less than 20 days before the 
        waiver takes effect. Such notification shall include a 
        report fully articulating the rationale and 
        circumstances which led the President to exercise the 
        waiver authority.
  [(f) Definition of Foreign Person.--For the purposes of this 
section, the term ``foreign person'' means--
          [(1) an individual who is not a citizen of the United 
        States or an alien admitted for permanent residence to 
        the United States; or
          [(2) 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.

                              [enforcement

  [Sec. 12. (a) General Authority.--(1) To the extent necessary 
or appropriate to the enforcement of this Act or to the 
imposition of any penalty, forfeiture, or liability arising 
under the Export Control Act of 1949 or the Export 
Administration Act of 1969, the head of any department or 
agency exercising any function thereunder (and officers or 
employees of such department or agency specifically designated 
by the head thereof) may make such investigations within the 
United States, and the Commissioner of Customs (and officers or 
employees of the United States Customs Service specifically 
designated by the Commissioner) may make such investigations 
outside of the United States, and the head of such department 
or agency (and such officers or employees) may obtain such 
information from, require such reports or the keeping of such 
records by, make such inspection of the books, records, and 
other writings, premises, or property of, and take the sworn 
testimony of, any person. In addition, such officers or 
employees may administer oaths or affirmations, and may subpena 
or require any person to appear and testify or to appear and 
produce books, records, and other writings, or both, and in the 
case of contumacy by, or refusal to obey a subpena issued to, 
any such person, a district court of the United States, after 
notice to any such person and 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, and any failure to obey such order of the 
court may be punished by such court as a contempt thereof. In 
addition to the authority conferred by this paragraph, the 
Secretary (and officers or employees of the Department of 
Commerce designated by the Secretary) may conduct, outside the 
United States, pre-license investigations and post-shipment 
verifications of items licensed for export, and investigations 
in the enforcement of section 8 of this Act.
  [(2)(A) Subject to subparagraph (B) of this paragraph, the 
United States Customs Service is authorized, in the enforcement 
of this Act, to search, detain (after search), and seize goods 
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.
  [(B) An officer of the United States Customs Service may do 
the following in carrying out enforcement authority under this 
Act:
          [(i) Stop, search, and examine a vehicle, vessel, 
        aircraft, or person on which or whom such officer has 
        reasonable cause to suspect there are any goods or 
        technology that has been, is being, or is about to be 
        exported from the United States in violation of this 
        Act.
          [(ii) Search any package or container in which such 
        officer has reasonable cause to suspect there are any 
        goods or technology that has been, is being, or is 
        about to be exported from the United States in 
        violation of this Act.
          [(iii) Detain (after search) or seize and secure for 
        trial any goods or technology on or about such vehicle, 
        vessel, aircraft, or person, or in such package or 
        container, if such officer has probable cause to 
        believe the goods or technology has been, is being, or 
        is about to be exported from the United States in 
        violation of this Act.
          [(iv) Make arrests without warrant for any violation 
        of this Act committed in his or her presence or view or 
        if the officer has probable cause to believe that the 
        person to be arrested has committed or is committing 
        such a violation.
The arrest authority conferred by clause (iv) of this 
subparagraph is in addition to any arrest authority under other 
laws. The Customs Service may not detain for more than 20 days 
any shipment of goods or technology eligible for export under a 
general license under section 4(a)(3). In a case in which such 
detention is on account of a disagreement between the Secretary 
and the head of any other department or agency with export 
license authority under other provisions of law concerning the 
export license requirements for such goods or technology, such 
disagreement shall be resolved within that 20-day period. At 
the end of that 20-day period, the Customs Service shall either 
release the goods or technology, or seize the goods or 
technology as authorized by other provisions of law.
  [(3)(A) Subject to subparagraph (B) of this paragraph, the 
Secretary shall have the responsibility for the enforcement of 
section 8 of this Act and, in the enforcement of the other 
provisions of this Act, the Secretary is authorized to search, 
detain (after search), and seize goods or technology at those 
places within the United States other than those ports 
specified in paragraph (2)(A) of this subsection. The search, 
detention (after search), or seizure of goods or technology at 
those ports and places specified in paragraph (2)(A) may be 
conducted by officers or employees of the Department of 
Commerce designated by the Secretary with the concurrence of 
the Commissioner of Customs or a person designated by the 
Commissioner.
  [(B) The Secretary may designate any employee of the Office 
of Export Enforcement of the Department of Commerce to do the 
following in carrying out enforcement authority under this Act:
          [(i) Execute any warrant or other process issued by a 
        court or officer of competent jurisdiction with respect 
        to the enforcement of the provisions of this Act.
          [(ii) Make arrests without warrant for any violation 
        of this Act committed in his or her presence or view, 
        or if the officer or employee has probable cause to 
        believe that the person to be arrested has committed or 
        is committing such a violation.
          [(iii) Carry firearms in carrying out any activity 
        described in clause (i) or (ii).
  [(4) The authorities first conferred by the Export 
Administration Amendments Act of 1985 under paragraph (3) shall 
be exercised pursuant to guidelines approved by the Attorney 
General. Such guidelines shall be issued not later than 120 
days after the date of the enactment of the Export 
Administration Amendments Act of 1985.
  [(5) All cases involving violations of this Act shall be 
referred to the Secretary for purposes of determining civil 
penalties and administrative sanctions under section 11(c) of 
this Act, or to the Attorney General for criminal action in 
accordance with this Act.
  [(6) Nothwithstanding any other provision of law, the United 
States Customs Service may expend in the enforcement of export 
controls under this Act not more than $12,000,000 in the fiscal 
year 1985 and not more than $14,000,000 in the fiscal year 
1986.
  [(7) Not later than 90 days after the date of the enactment 
of the Export Administration Amendments Act of 1985, the 
Secretary, with the concurrence of the Secretary of the 
Treasury, shall publish in the Federal Register procedures 
setting forth, in accordance with this subsection, the 
responsibilities of the Department of Commerce and the United 
States Customs Service in the enforcement of this Act. In 
addition, the Secretary, with the concurrence of the Secretary 
of the Treasury, may publish procedures for the sharing of 
information in accordance with subsection (c)(3) of this 
section, and procedures for the submission to the appropriate 
departments and agencies by private persons of information 
relating to the enforcement of this Act.
  [(8) For purposes of this section, a reference to the 
enforcement of this Act or to a violation of this Act includes 
a reference to the enforcement or a violation of any 
regulation, order, or license issued under this Act.
  [(b) Immunity.--No person shall be excused from complying 
with any requirements under this section because of his 
privilege against self-incrimination, but the immunity 
provisions of section 6002 of title 18, United States Code, 
shall apply with respect to any individual who specifically 
claims such privilege.
  [(c) Confidentiality.--(1) Except as otherwise provided by 
the third sentence of section 8(b)(2) and by section 
11(c)(2)(C) of this Act, information obtained under this Act on 
or before June 30, 1980, which is deemed confidential, 
including Shippers' Export Declarations, or with reference to 
which a request for confidential treatment is made by the 
person furnishing such information, shall be exempt from 
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. Information obtained under 
this Act after June 30, 1980, may be withheld only to the 
extent permitted by statute, except that information obtained 
for the purpose of consideration of, or concerning, license 
applications under this Act shall be withheld from public 
disclosure unless the release of such information is determined 
by the Secretary to be in the national interest. Enactment of 
this subsection shall not affect any judicial proceeding 
commenced under section 552 of title 5, United States Code, to 
obtain access to boycott reports submitted prior to October 31, 
1976, which was pending on May 15, 1979; but such proceeding 
shall be continued as if this Act had not been enacted.
  [(2) Nothing in this Act shall be construed as authorizing 
the withholding of information from the Congress or from the 
General Accounting Office. All information at any time under 
this Act or previous Acts regarding the control of exports, 
including any report or license application required under this 
Act, shall be made available to any committee or subcommittee 
of Congress of appropriate jurisdiction upon request of the 
chairman or ranking minority member of such committee or 
subcommittee. No such committee or subcommittee, or member 
thereof, shall disclose any information obtained under this Act 
or previous Acts regarding the control of exports which is 
submitted on a confidential basis unless the full committee 
determines that the withholding of that information is contrary 
to the national interest. Notwithstanding paragraph (1) of this 
subsection, information referred to in the second sentence of 
this paragraph 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 313 of the Budget and Accounting Act, 
1921, be made available only by that agency, upon request, to 
the Comptroller General of the United States or to any officer 
or employee of the General Accounting Office who is authorized 
by the Comptroller General to have access to such information. 
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) Any department or agency which obtains information which 
is relevant to the enforcement of this Act, including 
information pertaining to any investigation, shall furnish such 
information to each department or agency with enforcement 
responsibilities under this Act to the extent consistent with 
the protection of intelligence, counterintelligence, and law 
enforcement sources, methods, and activities. The provisions of 
this paragraph shall not apply to information subject to the 
restrictions set forth in section 9 of title 13, United States 
Code; and return information, as defined in subsection (b) of 
section 6103 of the Internal Revenue Code of 1954, may be 
disclosed only as authorized by such section. The Secretary and 
the Commissioner of Customs, upon request, shall exchange any 
licensing and enforcement information with each other which is 
necessary to facilitate enforcement efforts and effective 
license decisions. The Secretary, the Attorney General, and the 
Commissioner of Customs shall consult on a continuing basis 
with one another and with the heads of other departments and 
agencies which obtain information subject to this paragraph, in 
order to facilitate the exchange of such information.
  [(d) Reporting Requirements.--In the administration of this 
Act, reporting requirements shall be so designed as to reduce 
the cost of reporting, recordkeeping, and export documentation 
required under this Act to the extent feasible consistent with 
effective enforcement and compilation of useful trade 
statistics. Reporting, recordkeeping, and export documentation 
requirements shall be periodically reviewed and revised in the 
light of developments in the field of information technology.
  [(e) Simplification of Regulations.--The Secretary, in 
consultation with appropriate United States Government 
departments and agencies and with appropriate technical 
advisory committees established under section 5(h), shall 
review the regulations issued under this Act and the commodity 
control list in order to determine how compliance with the 
provisions of this Act can be facilitated by simplifying such 
regulations, by simplifying or clarifying such list, or by any 
other means.

             [administrative procedure and judicial review

  [Sec. 13. (a) Exemption.--Except as provided in section 
11(c)(2) and subsection (c) of this section, the functions 
exercised under this Act are excluded from the operation of 
sections 551, 553 through 559, and 701 through 706 of title 5, 
United States Code.
  [(b) Public Participation.--It is the intent of the Congress 
that, to the extent practicable, all regulations imposing 
controls on exports under this Act be issued in proposed form 
with meaningful opportunity for public comment before taking 
effect. In cases where a regulation imposing controls under 
this Act is issued with immediate effect, it is the intent of 
the Congress that meaningful opportunity for public comment 
also be provided and that the regulation be reissued in final 
form after public comments have been fully considered.
  [(c) Procedures Relating to Civil Penalties and Sanctions.--
(1) In any case in which a civil penalty or other civil 
sanction (other than a temporary denial order or a penalty or 
sanction for a violation of section 8) is sought under section 
11 of this Act, the charged party is entitled to receive a 
formal complaint specifying the charges and, at his or her 
request, to contest the charges in a hearing before an 
administrative law judge. Subject to the provisions of this 
subsection, any such hearing shall be conducted in accordance 
with sections 556 and 557 of title 5, United States Code. With 
the approval of the administrative law judge, the Government 
may present evidence in camera in the presence of the charged 
party or his or her representative. After the hearing, the 
administrative law judge shall make findings of fact and 
conclusions of law in a written decision, which shall be 
referred to the Secretary. The Secretary shall, in a written 
order, affirm, modify, or vacate the decision of the 
administrative law judge within 30 days after receiving the 
decison. The order of the Secretary shall be final and is not 
subject to judicial review, except as provided in paragraph 
(3).
  [(2) The proceedings described in paragraph (1) shall be 
concluded within a period of 1 year after the complaint is 
submitted, unless the administrative law judge extends such 
period for good cause shown.
  [(3) The order of the Secretary under paragraph (1) shall be 
final, except that the charged party may, within 15 days after 
the order is issued, appeal the order in the United States 
Court of Appeals for the District of Columbia Circuit, which 
shall have jurisdiction of the appeal. The court may, while the 
appeal is pending, stay the order of the Secretary. The court 
may review only those issues necessary to determine liability 
for the civil penalty or other sanction involved. In an appeal 
filed under this paragraph, the court shall set aside any 
finding of fact for which the court finds there is not 
substantial evidence on the record and any conclusion of law 
which the court finds to be arbitrary, capricious, an abuse of 
discretion, or otherwise not in accordance with law.
  [(4) An administrative law judge referred to in this 
subsection shall be appointed by the Secretary from among those 
considered qualified for selection and appointment under 
section 3105 of title 5, United States Code. Any person who, 
for at least 2 of the 10 years immediately preceding the date 
of the enactment of the Export Administration Amendments Act of 
1985, has served as a hearing commissioner of the Department of 
Commerce shall be included among these considered as qualified 
for selection and appointment to such position.
  [(d) Imposition of Temporary Denial Orders.--(1) In any case 
in which it is necessary, in the public interest, to prevent an 
imminent violation of this Act or any regulation, order, or 
license issued under this Act, the Secretary may, without a 
hearing, issue an order temporarily denying United States 
export privileges (hereinafter in this subsection referred to 
as a ``temporary denial order'') to a person. A temporary 
denial order may be effective no longer than 180 days unless 
renewed in writing by the Secretary for additional 180-day 
periods in order to prevent such an imminent violation, except 
that a temporary denial order may be renewed only after notice 
and an opportunity for a hearing is provided.
  [(2) A temporary denial order shall define the imminent 
violation and state why the temporary denial order was granted 
without a hearing. The person or persons subject to the 
issuance or renewal of a temporary denial order may file an 
appeal of the issuance or renewal of the temporary denial order 
with an administrative law judge who shall, within 10 working 
days after the appeal is filed, recommend that the temporary 
denial order be affirmed, modified, or vacated. Parties may 
submit briefs and other material to the judge. The 
recommendation of the administrative law judge shall be 
submitted to the Secretary who shall either accept, reject, or 
modify the recommendation by written order within 5 working 
days after receiving the recommendation. The written order of 
the Secretary under the preceding sentence shall be final and 
is not subject to judicial review, except as provided in 
paragraph (3). The temporary denial order shall be affirmed 
only if it is reasonable to believe that the order is required 
in the public interest to prevent an imminent violation of this 
Act or any regulation, order, or license issued under this Act. 
All materials submitted to the administrative law judge and the 
Secretary shall constitute the administrative record for 
purposes of review by the courts.
  [(3) An order of the Secretary affirming, in whole or in 
part, the issuance 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 standard for issuing the temporary denial 
order has been met. 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.
  [(e) Appeals From License Denials.--A determination of the 
Secretary, under section 10(f) of this Act, to deny a license 
may be appealed by the applicant to an administrative law judge 
who shall have the authority to conduct proceedings to 
determine only whether the item sought to be exported is in 
fact on the control list. Such proceedings shall be conducted 
within 90 days after the appeal is filed. Any determination by 
an administrative law judge under this subsection and all 
materials filed before such judge in the proceedings shall be 
reviewed by the Secretary, who shall either affirm or vacate 
the determination in a written decision within 30 days after 
receiving the determination. The Secretary's written decision 
shall be final and is not subject to judicial review. Subject 
to the limitations provided in section 12(c) of this Act, the 
Secretary's decision shall be published in the Federal 
Register.

                             [annual report

  [Sec. 14. (a) Contents.--Not later than December 31 of each 
year, the Secretary shall submit to the Congress a report on 
the administration of this Act during the preceding fiscal 
year. All agencies shall cooperate fully with the Secretary in 
providing information for such report. Such report shall 
include detailed information with respect to--
          [(1) the implementation of the policies set forth in 
        section 3;
          [(2) general licensing activities under sections 5, 
        6, and 7, and any changes in the exercise of the 
        authorities contained in sections 5(a), 6(a), and 7(a);
          [(3) the results of the review of United States 
        policy toward individual countries pursuant to section 
        5(b);
          [(4) the results, in as much detail as may be 
        included consistent with the national security and the 
        need to maintain the confidentiality of proprietary 
        information, of the actions, including reviews and 
        revisions of export controls maintained for national 
        security purposes, required by section 5(c)(3);
          [(5) actions taken to carry our section 5(d);
          [(6) changes in categories of items under export 
        control referred to in section 5(e);
          [(7) determinations of foreign availability made 
        under section 5(f), the citeria used to make such 
        determinations, the removal of any export controls 
        under such section, and any evidence demonstrating a 
        need to impose export controls for national security 
        purposes notwithstanding foreign availability;
          [(8) actions taken in compliance with section 
        5(f)(6);
          [(9) the operation of the indexing system under 
        section 5(g);
          [(10) consultations with the technical advisory 
        committees established pursuant to section 5(h), the 
        use made of the advice rendered by such committees, and 
        the contributions of such committees toward 
        implementing the policies set forth in this Act;
          [(11) the effectiveness of export controls imposed 
        under section 6 in furthering the foreign policy of the 
        United States;
          [(12) export controls and monitoring under section 7;
          [(13) the information contained in the reports 
        required by section 7(b)(2), together with an analysis 
        of--
                  [(A) the impact on the economy and world 
                trade of shortages or increased prices for 
                commodities subject to monitoring under this 
                Act or section 812 of the Agricultural Act of 
                1970;
                  [(B) the worldwide supply of such 
                commodities; and
                  [(C) actions being taken by other countries 
                in response to such shortages or increased 
                prices;
          [(14) actions taken by the President and the 
        Secretary to carry out the antiboycott policies set 
        forth in section 3(5) of this Act;
          [(15) organizational and procedural changes 
        undertaken in furtherance of the policies set forth in 
        this Act, including changes to increase the efficiency 
        of the export licensing process and to fulfill the 
        requirements of section 10, including an accounting of 
        appeals received, court orders issued, and actions 
        taken pursuant thereto under subsection (j) of such 
        section;
          [(16) delegations of authority by the President as 
        provided in section 4(e) of this Act;
          [(17) efforts to keep the business sector of the 
        Nation informed with respect to policies and procedures 
        adopted under this Act;
          [(18) any reviews undertaken in furtherance of the 
        policies of this Act, including the results of the 
        review required by section 12(d), and any action taken, 
        on the basis of the review required by section 12(e), 
        to simplify regulations issued under this Act;
          [(19) violations under section 11 and enforcement 
        activities under section 12; and
          [(20) the issuance of regulations under the authority 
        of this Act, including an explanation of each case in 
        which regulations were not issued in accordance with 
        the first sentence of section 13(b).
  [(b) Report on Certain Export Controls.--To the extent that 
the President determines that the policies set forth in section 
3 of this Act require the control of the export of goods and 
technology other than those subject to multilateral controls, 
or require more stringent controls than the multilateral 
controls, the President shall include in each annual report the 
reasons for the need to impose, or to continue to impose, such 
controls and the estimated domestic economic impact on the 
various industries affected by such controls.
  [(c) Report on Negotiations.--The President shall include in 
each annual report a detailed report on the progress of the 
negotiations required by section 5(i), until such negotiations 
are concluded.
  [(d) Report on Exports to Controlled Countries.--The 
Secretary shall include in each annual report a detailed report 
which lists every license for exports to controlled countries 
which was approved under this Act during the preceding fiscal 
year. Such report shall specify to whom the license was 
granted, the type of goods or technology exported, and the 
country receiving the goods or technology. The information 
required by this subsection shall be subject to the provisions 
of section 12(c) of this Act.
  [(e) Report on Domestic Economic Impact of Exports to 
Controlled Countries.--The Secretary shall include in each 
annual report a detailed description of the extent of injury to 
United States industry and the extent of job displacement 
caused by United States exports of goods and technology to 
controlled countries. The annual report shall also include a 
full analysis of the consequences of exports of turnkey plants 
and manufacturing facilities to controlled countries which are 
used by such countries to produce goods for export to the 
United States or to compete with United States products in 
export markets.
  [(f) Annual Report of the President.--The President shall 
submit an annual report to the Congress estimating the 
additional defense expenditures of the United States arising 
from illegal technology transfers, focusing on estimated 
defense costs arising from illegal technology transfers that 
resulted in a serious adverse impact on the strategic balance 
of forces. These estimates shall be based on assessment by the 
intelligence community of any technology transfers that 
resulted in such serious adverse impact. This report may have a 
classified annex covering any information of a sensitive 
nature.

                [administrative and regulatory authority

  [Sec. 15. (a) Under Secretary of Commerce.--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 Act and such other statutes that relate to 
national security which were delegated to the office of the 
Assistant Secretary of Commerce for Trade Administration before 
the date of the enactment of the Export Administration 
Amendments Act of 1985, and such other functions under this Act 
which were delegated to such office before such date of 
enactment, 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.
  [(b) Issuance of Regulations.--The President and the 
Secretary may issue such regulations as are necessary to carry 
out the provisions of this Act. Any such regulations issued to 
carry out the provisions of section 5(a), 6(a), 7(a), or 8(b) 
may apply to the financing, transporting, or other servicing of 
exports and the participation therein by any person. Any such 
regulations the purpose of which is to carry out the provisions 
of section 5, or of section 4(a) for the purpose of 
administering the provisions of section 5, may be issued only 
after the regulations are submitted for review to the Secretary 
of Defense, the Secretary of State, such other departments and 
agencies as the Secretary considers appropriate, and the 
appropriate technical advisory committee. The preceding 
sentence does not require the concurrence or approval of any 
official, department, or agency to which such regulations are 
submitted.
  [(c) Amendments to Regulations.--If the Secretary proposes to 
amend regulations issued under this Act, the Secretary shall 
report to the Committee on Banking, Housing, and Urban Affairs 
of the Senate and the Committee on Foreign Affairs of the House 
of Representatives on the intent and rationale of such 
amendments. Such report shall evaluate the cost and burden to 
United States exporters of the proposed amendments in relation 
to any enhancement of licensing objectives. The Secretary shall 
consult with the technical advisory committees authorized under 
section 5(h) of this Act in formulating or amending regulations 
issued under this Act. The procedures defined by regulations in 
effect on January 1, 1984, with respect to sections 4 and 5 of 
this Act, shall remain in effect unless the Secretary 
determines, on the basis of substantial and reliable evidence, 
that specific change is necessary to enhance the prevention of 
diversions of exports which would prove detrimental to the 
national security of the United States or to reduce the 
licensing and paperwork burden on exporters and their 
distributors.

                              [definitions

  [Sec. 16. As used in this Act--
          [(1) the term ``person'' includes the singular and 
        the plural and any individual, partnership, 
        corporation, or other form of association, including 
        any government or agency thereof;
          [(2) the term ``United States person'' means any 
        United States 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;
          [(3) the term ``good'' means any article, natural or 
        manmade substance, material, supply or manufactured 
        product, including inspection and test equipment, and 
        excluding technical data;
          [(4) the term ``technology'' means the information 
        and knowhow (whether in tangible form, such as models, 
        prototypes, drawings, sketches, diagrams, blueprints, 
        or manuals, or in intangible form, such as training or 
        technical services) that can be used to design, 
        produce, manufacture, utilize, or reconstruct goods, 
        including computer software and technical data, but not 
        the goods themselves;
          [(5) the term ``export'' means--
                  [(A) an actual shipment, transfer, or 
                transmission of goods or technology out of the 
                United States;
                  [(B) a transfer of goods or technology in the 
                United States to an embassy or affiliate of a 
                controlled country; or
                  [(C) a transfer to any person of goods or 
                technology either within the United States or 
                outside of the United States with the knowledge 
                or intent that the goods or technology will be 
                shipped, transferred, or transmitted to an 
                unauthorized recipient;
          [(6) the term ``controlled country'' means a 
        controlled country under section 5(b)(1) of this Act;
          [(7) 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)); and
          [(8) the term ``Secretary'' means the Secretary of 
        Commerce.

                         [effect on other acts

  [Sec. 17. (a) In General.--Except as otherwise provided in 
this Act, nothing contained in this Act shall be construed to 
modify, repeal, supersede, or otherwise affect the provisions 
of any other laws authorizing control over exports of any 
commodity.
  [(b) Coordination of Controls.--The authority granted to the 
President under this Act shall be exercised in such manner as 
to achieve effective coordination with the authority exercised 
under section 38 of the Arms Export Control Act (22 U.S.C. 
2778).
  [(c) Civil Aircraft Equipment.--Notwithstanding any other 
provision of law, any product (1) which is standard equipment 
certified by the Federal Aviation Administration, in civil 
aircraft and is an integral part of such aircraft, and (2) 
which is to be exported to a country other than a controlled 
country, shall be subject to export controls exclusively under 
this Act. Any such product shall not be subject to controls 
under section 38(b)(2) of the Arms Export Control Act.
  [(d) Nonproliferation Controls.--(1) Nothing in section 5 or 
6 of this Act shall be construed to supersede the procedures 
published by the President pursuant to section 309(c) of the 
Nuclear Non-Proliferation Act of 1978.
  [(2) With respect to any export license application which, 
under the procedures published by the President pursuant to 
section 309(c) of the Nuclear Non-Proliferation Act of 1978, is 
referred to the Subgroup on Nuclear Export Coordination or 
other interagency group, the provisions of section 10 of this 
Act shall apply with respect to such license application only 
to the extent that they are consistent with such published 
procedures, except that if the processing of any such 
application under such procedures is not completed within 180 
days after the receipt of the application by the Secretary, the 
applicant shall have the rights of appeal and court action 
provided in section 10(j) of this Act.
  [(e) Termination of Other Authority.--On October 1, 1979, the 
Mutual Defense Assistance Control Act of 1951 (22 U.S.C. 1611-
1613d), is superseded.
  [(f) Agricultural Act of 1970.--Nothing in this Act shall 
affect the provisions of the last sentence of section 812 of 
the Agricultural Act of 1970 (7 U.S.C. 612c-3).

                    [authorization of appropriations

  [Sec. 18. (a) Requirement of Authorizing Legislation.--(1) 
Notwithstanding any other provisions of law, money appropriated 
to the Department of Commerce for expenses to carry out the 
purposes of this Act may be obligated or expended only if--
          [(A) the appropriation thereof has been previously 
        authorized by law enacted on or after the date of the 
        enactment of the Export Administration Amendments Act 
        of 1985; or
          [(B) the amount of all such obligations and 
        expenditures does not exceed an amount previously 
        prescribed by law enacted on or after such date.
  [(2) To the extent that legislation enacted after the making 
of an appropriation to carry out the purposes of this Act 
authorizes the obligation or expenditure thereof, the 
limitation contained in paragraph (1) shall have no effect.
  [(3) The provisions of this subsection shall not be 
superseded except by a provision of law enacted after the date 
of the enactment of the Export Administration Amendments Act of 
1985 which specifically repeals, modifies, or supersedes the 
provisions of this subsection.
  [(b) Authorization.--There are authorized to be appropriated 
to the Department of Commerce to carry out the purposes of this 
Act--
          [(1) $42,813,000 for the fiscal year 1993;
          [(2) such sums as may be necessary for the fiscal 
        year 1994; and
          [(3) such additional amounts, for each such fiscal 
        year, as may be necessary for increases in salary, pay, 
        retirement, other employee benefits authorized by law, 
        and other nondiscretionary costs.

                            [effective date

  [Sec. 19. (a) Effective Date.--This Act shall take effect 
upon the expiration of the Export Administration Act of 1969.
  [(b) Issuance of Regulations.--(1) Regulations implementing 
the provisions of section 10 of this Act shall be issued and 
take effect not later than July 1, 1980.
  [(2) Regulations implementing the provisions of section 7(c) 
of this Act shall be issued and take effect not later than 
January 1, 1980.

                           [termination date

  [Sec. 20. The authority granted by this Act terminates on 
August 20, 1994.

                          [savings provisions

  [Sec. 21. (a) In General.--All, delegations, rules, 
regulations, orders, determinations, licenses, or other forms 
of administrative action which have been made, issued, 
conducted, or allowed to become effective under the Export 
Control Act of 1949 or the Export Administration Act of 1969 
and which are in effect at the time this Act takes effect shall 
continue in effect according to their terms until modified, 
superseded, set aside, or revoked under this Act.
  [(b) Administrative Proceedings.--This Act shall not apply to 
any administrative proceedings commenced or any application for 
a license made, under the Export Administration Act of 1969, 
which is pending at the time this Act takes effect.

                         [technical amendments

  [Sec. 22. (a) Section 38(e) of the Arms Export Control Act 
(22 U.S.C. 2778(e)) is amended by striking out ``section 6(c), 
(d), (e), and (f) and 7(a) and (c) of the Export Administration 
Act of 1969'' and inserting in lieu thereof ``subsections (c), 
(d), (e), and (f) of section 11 of the Export Administration 
Act of 1979, and by subsections (a) and (c) of section 12 of 
such Act''.
  [(b)(1) Section 103(c) of the Energy Policy and Conservation 
Act (42 U.S.C. 6212(c)) is amended--
          [(A) by striking out ``1969'' and inserting in lieu 
        thereof ``1979''; and
          [(B) by striking out ``(A)'' and inserting in lieu 
        thereof ``(C)''.
  [(2) Section 254(e)(3) of such Act (42 U.S.C. 6274(e)(3)) is 
amended by striking out ``section 7 of the Export 
Administration Act of 1969'' and inserting in lieu thereof 
``section 12 of the Export Administration Act of 1979''.
  [(c) Section 993(c)(2)(D) of the Internal Revenue Code of 
1954 (26 U.S.C. 993(c)(2)(D)) is amended--
          [(1) by striking out ``4(b) of the Export 
        Administration Act of 1969 (50 U.S.C. App. 2403(b))'' 
        and inserting in lieu thereof ``7(a) of the Export 
        Administration Act of 1979''; and
          [(2) by striking out ``(A)'' and inserting in lieu 
        thereof ``(C)''.

          [international investment survey act authorizations

  [Sec. 23. (a) Section 9 of the International Investment 
Survey Act of 1976 (22 U.S.C. 3108) is amended to read as 
follows:

                           [``authorizations

  [``Sec. 9. To carry out this Act, there are authorized to be 
appropriated $4,400,000 for the fiscal year ending September 
30, 1980, and $4,500,000 for the fiscal year ending September 
30, 1981.''.
  [(b) The amendment made by subsection (a) shall take effect 
on October 1, 1979.

                             [miscellaneous

  [Sec. 24. Section 402 of the Agricultural Trade Development 
and Assistance Act of 1954 is amended by inserting ``or beer'' 
in the section sentence immediately after ``wine''.]
                              ----------                              


  FOREIGN RELATIONS AUTHORIZATION ACT, FOR FISCAL YEARS 1994 AND 1995

          * * * * * * *

            TITLE VIII--NUCLEAR PROLIFERATION PREVENTION ACT

SEC. 801. SHORT TITLE.

  This title may be cited as the ``Nuclear Proliferation 
Prevention Act of 1994''.
          * * * * * * *

              PART B--SANCTIONS FOR NUCLEAR PROLIFERATION

          * * * * * * *

SEC. 824. PROHIBITION ON ASSISTING NUCLEAR PROLIFERATION THROUGH THE 
                    PROVISION OF FINANCING.

  (a) * * *
          * * * * * * *
  (c) Presidential Determination and Order With Respect to 
United States and Foreign Persons.--If the President 
determines[, in writing after opportunity for a hearing on the 
record,] that a United States person or a foreign person has 
engaged in a prohibited activity (without regard to whether 
subsection (b) applies), the President shall, by order, impose 
the sanctions described in subsection (d) on such person.
          * * * * * * *
  [(e) Judicial Review.--Any determination of the President 
under subsection (c) shall be subject to judicial review in 
accordance with chapter 7 of part I of title 5, United States 
Code.]
  [(f)] (e) Consultation With and Actions by Foreign Government 
of Jurisdiction.--
          (1) Consultations.--If the President makes a 
        determination under subsection (c) with respect to a 
        foreign person, the Congress urges the President to 
        initiate consultations immediately with any appropriate 
        foreign government with respect to the imposition of 
        any sanction pursuant to this section.
          (2) Actions by government of jurisdiction.--
                  (A) Suspension of period for imposing 
                sanctions.--In order to pursue consultations 
                described in paragraph (1) with any government 
                referred to in such paragraph, the President 
                may delay, for up to 90 days, the effective 
                date of an order under subsection (c) imposing 
                any sanction.
                  (B) Coordination with activities of foreign 
                government.--Following consultations described 
                in paragraph (1), the order issued by the 
                President under subsection (c) imposing any 
                sanction on a foreign person shall take effect 
                unless the President determines, and certifies 
                in writing to the Congress, that the government 
                referred to in paragraph (1) has taken specific 
                and effective actions, including the imposition 
                of appropriate penalties, to terminate the 
                involvement of the foreign person in any 
                prohibited activity.
                  (C) Extension of period.--After the end of 
                the period described in subparagraph (A), the 
                President may delay, for up to an additional 90 
                days, the effective date of an order issued 
                under subsection (b) imposing any sanction on a 
                foreign person if the President determines, and 
                certifies in writing to the Congress, that the 
                appropriate foreign government is in the 
                process of taking actions described in 
                subparagraph (B).
          (3) Report to congress.--Before the end of the 90-day 
        period beginning on the date on which an order is 
        issued under subsection (c), the President shall submit 
        to the Congress a report on--
                  (A) the status of consultations under this 
                subsection with the government referred to in 
                paragraph (1); and
                  (B) the basis for any determination under 
                paragraph (2) that such government has taken 
                specific corrective actions.
  [(g)] (f) Termination of the Sanctions.--Any sanction imposed 
on any person pursuant to an order issued under subsection (c) 
shall--
          (1) remain in effect for a period of not less than 12 
        months; and
          (2) cease to apply after the end of such 12-month 
        period only if the President determines, and certifies 
        in writing to the Congress, that--
                  (A) the person has ceased to engage in any 
                prohibited activity; and
                  (B) the President has received reliable 
                assurances from such person that the person 
                will not, in the future, engage in any 
                prohibited activity.
  [(h)] (g) Waiver.--The President may waive the continued 
application of any sanction imposed on any person pursuant to 
an order issued under subsection (c) if the President 
determines, and certifies in writing to the Congress, that the 
continued imposition of the sanction would have a serious 
adverse effect on the safety and soundness of the domestic or 
international financial system or on domestic or international 
payments systems.
  [(i)] (h) Enforcement Action.--The Attorney General may bring 
an action in an appropriate district court of the United States 
for injunctive and other appropriate relief with respect to--
          (1) any violation of subsection (b); or
          (2) any order issued pursuant to subsection (c).
  [(j)] (i) Knowingly Defined.--
          (1) In general.--For purposes of this section, the 
        term ``knowingly'' means the state of mind of a person 
        with respect to conduct, a circumstance, or a result in 
        which--
                  (A) such person is aware that such person is 
                engaging in such conduct, that such 
                circumstance exists, or that such result is 
                substantially certain to occur; or
                  (B) such person has a firm belief that such 
                circumstance exists or that such result is 
                substantially certain to occur.
          (2) Knowledge of the existence of a particular 
        circumstance.--If knowledge of the existence of a 
        particular circumstance is required for an offense, 
        such knowledge is established if a person is aware of a 
        high probability of the existence of such circumstance, 
        unless the person actually believes that such 
        circumstance does not exist.
  [(k)] (j) Scope of Application.--This section shall apply 
with respect to prohibited activities which occur on or after 
the date this part takes effect.
          * * * * * * *

                          [PART D--TERMINATION

[SEC. 851. TERMINATION UPON ENACTMENT OF NEXT FOREIGN RELATIONS ACT.

  [On the date of enactment of the first Foreign Relations 
Authorization Act that is enacted after the enactment of this 
Act, the provisions of parts A and B of this title shall cease 
to be effective, the amendments made by those parts shall be 
repealed, and any provision of law repealed by those parts 
shall be reenacted.]
          * * * * * * *
    ADDITIONAL VIEWS OF HON. LEE H. HAMILTON AND HON. SAM GEJDENSON

    Congressman Roth, the chief author of H.R. 361, has engaged 
in an extraordinary cooperative effort to produce a bill that 
is acceptable to the Administration and to the National 
Security Committee. He has worked hard to accommodate their 
concerns. This has been tough sledding and Mr. Roth deserves 
much credit for his tenacity and his good work.
    H.R. 361 does some important things. It transforms the 
expired Export Administration Act into a statute that more 
directly addresses the threat of proliferation. This is an 
important change and one that is required to counter the 
security threats of the post-Cold War world. The bill also puts 
our export control system on a statutory foundation. This may 
provide increased predictability and will enhance the ability 
of the U.S. government to take enforcement action against 
violators.
    The bill also includes a prohibition on dual-use exports to 
countries that support international terrorism. This provision 
mirrors language of H.R. 3109, a bill recently introduced by 
Mr. Gejdenson. The provision would prevent militarily sensitive 
dual use items being exported to terrorist countries. The 
United States must deny the export to countries that support 
terrorism of goods or technology which could make a significant 
contribution to their military potential or which could enhance 
their ability to support acts of international terrorism.
    We do not believe, however, that this bill will result in 
significant changes to what is still a cumbersome and 
bureaucratic export control apparatus. We are concerned that 
the bill will not impose sufficient discipline on export 
licensing decisions, will permit unilateral controls to be 
imposed to easily, and will unnecessarily limit the rights of 
exporters to petition the government for relief if they believe 
that U.S. export controls impact them unfairly.
    We will briefly describe our concerns with the bill in more 
detail.
    First, the export licensing timeframes in the bill do not 
meet the needs of U.S. exporters in an increasingly competitive 
world economy. Under the bill, license applications could take 
90 days just to arrive on the President's desk, and there is no 
deadline for how long the President could take to make a final 
decision. Even under the expired Export Administration Act, 
there is a deadline of 20 days for the President to make a 
decision. The bill also imposes no time constraints on pre-
license checks of intended end-users, and an increasing number 
of applications will be subject to such checks.
    In effect, the bill allows upwards of three months for 
license decisions, although many may well be made in shorter 
period. Given the rapidity with which technology advances and 
the fact that many of our chief competitors routinely approve 
exports more quickly than we do, delays in licensing will place 
U.S. business at a competitive disadvantage. Generations of 
computers and other technology could change in the time it 
takes to make a licensing decision.
    Our second concern is with the bill's provisions for 
imposing unilateral export controls. The key factor here is the 
effect of the new Wassenaar Arrangement, which has replaced 
CoCom. Countries participating in the Wassenaar Arrangement are 
permitted to exercise ``national disrection'' in deciding 
precisely how to control items on the list. Based on past 
experience under CoCom, ``national discretion'' can be expected 
to open the door to the imposition of unilateral controls on 
U.S. exports. Unfortunately, given its definition of unilateral 
controls and the criteria in section 106 for imposing those 
controls, this bill will not adequately restrict unilateral 
U.S. controls on items on the Wassenaar list, including items 
slated for export to our allies and to other countries that do 
not pose a security threat to the United States.
    In addition, we understand that it is the Administration's 
view that, for items that have been included in the Wassenaar 
List, export restrictions that the U.S. government choose to 
apply would not generally qualify as unilateral controls. If 
the United States prohibits the export of a listed item and no 
other country restricts the export of that item, the U.S. 
prohibition would still be considered a multilateral rather 
that a unilateral control. As result, we do not believe that 
this bill adequately addresses the potential expansion of 
unilateral controls.
    Third, the bill falls short in the area of commodity 
jurisdiction. The bill lacks provisions that define the 
differences between dual-use items controlled by the Commerce 
Department and munitions items controlled by the State 
Department. To its credit, the Administration has devised 
procedures for resolving commodity jurisdiction disputes, and 
this bill will accommodate those procedures. However, the 
absence of a balanced statutory distinction between dual-use 
and munitions items could skew U.S. export controls in a more 
restrictive direction.
    Fourth, we have concerns about section 114(k) of this bill, 
which is intended to give U.S. exporters relief from the unfair 
impact of U.S. export controls. H.R. 361 originally allowed for 
a claim of unfair impact to be based on any one of three 
grounds: 1) foreign availability; 2) the inability to control 
an item domestically; or 3) a control resulting in a 
significant competitive disadvantage.
    Unfortunately, this provision was narrowed to allow a claim 
of unfair impact only on the basis of foreign availability and 
other criteria to which the Secretary of Defense agrees. It 
seems to us that American executives should not be restricted 
in their ability to petition their government regarding the 
potentially unfair impact of U.S. export controls. It is clear 
that limiting the grounds on which exporters can petition for a 
change in U.S. export controls will hurt U.S. Business; it is 
not clear how broadening those grounds will harm U.S. national 
security.
    Not only has unfair impact been limited to foreign 
availability; by virtue of an amendment approved during the 
Committee mark-up, the bill no longer explicitly authorizes 
forward-looking foreign availability determinations. Forward-
looking foreign availability determinations led to the 
liberalization of export controls on computers in 1993 and 
1996. On both occasions, the Administration recognized that it 
did not make sense to set U.S. control levels for computers 
only at the level at which they were presently available in 
world markets because technology would quickly overtake those 
control levels. As result, the Administration authorized the 
export of computers at performance levels at which they were 
expected, with a high degree of certainty, to be available 
abroad in the near term.
    Although the amendment adopted in Full Committee does not 
explicitly prohibit looking forward, by failing to include 
forward-looking foreign availability and requiring Defense 
Department concurrence on all foreign availability criteria, 
the language in this section makes it likely that forward-
looking foreign availability will not be authorized in export 
control regulations or will be heavily conditioned on other 
factors.
    We want to emphasize that broader rights of petition would 
not compel changes in U.S. export controls; they would only 
provide U.S. companies greater opportunity to ask for relief 
when they believe they are unfairly disadvantaged by U.S. 
controls.
    We regret that the National Security Committee and the 
Administration could not be more accommodating on these 
provisions. It is our hope that as this bill moves forward, the 
provisions we have raised here can be modified and improved so 
that this bill better serves the U.S. national interest.

                                   Sam Gejdenson.
                                   Lee H. Hamilton.