    [House Report 107-297]
    [From the U.S. Government Publishing Office]

    107th Congress                                            Rept. 107-297
                            HOUSE OF REPRESENTATIVES
     1st Session                                                     Part 1

    ======================================================================

                       EXPORT ADMINISTRATION ACT OF 2001

                                    _______

                   November 16, 2001.--Ordered to be printed

                                    _______

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

                                  R E P O R T

                                 together with

                                DISSENTING VIEWS

                            [To accompany H.R. 2581]

         [Including cost estimates of the Congressional Budget Office]

        The Committee on International Relations, to whom was
    referred the bill (H.R. 2581) to provide authority to control
    exports, and for other purposes, having considered the same,
    reports favorably thereon with an amendment and recommends that
    the bill as amended do pass.

                               TABLE OF CONTENTS

                                                                       Page
    The Amendment....................................................     1
    Background and Purpose...........................................    56
    Hearings.........................................................    60
    Committee Consideration..........................................    61
    Votes of the Committee...........................................    62
    Committee Oversight Findings.....................................    63
    New Budget Authority and Tax Expenditures........................    63
    Congressional Budget Office Cost Estimates.......................    63
    Performance Goals and Objectives.................................    68
    Constitutional Authority Statement...............................    68
    Section-by-Section Analysis......................................    68
    New Advisory Committees..........................................    87
    Congressional Accountability Act.................................    87
    Federal Mandates.................................................    87
    Changes in Existing Law Made by the Bill, as Reported............    88
    Dissenting Views.................................................   221

                                 The Amendment

        The amendment is as follows:
        Strike all after the enacting clause and insert the
    following:

    SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

        (a) Short Title.--This Act may be cited as the ``Export
    Administration Act of 2001''.
        (b) Table of Contents.--The table of contents of this Act is as
    follows:

    Sec. 1. Short title; table of contents.
    Sec. 2. Definitions.

                           TITLE I--GENERAL AUTHORITY

    Sec. 101. Commerce Control List.
    Sec. 102. Delegation of authority.
    Sec. 103. Public information; consultation requirements.
    Sec. 104. Right of export.
    Sec. 105. Export control advisory committees.
    Sec. 106. President's Technology Export Council.
    Sec. 107. Prohibition on charging fees.

                  TITLE II--NATIONAL SECURITY EXPORT CONTROLS

                      Subtitle A--Authority and Procedures

    Sec. 201. Authority for national security export controls.
    Sec. 202. National Security Control List.
    Sec. 203. Country tiers.
    Sec. 204. Incorporated parts and components.
    Sec. 205. Petition process for modifying export status.

            Subtitle B--Foreign Availability and Mass-Market Status

    Sec. 211. Determination of foreign availability and mass-market status.
    Sec. 212. Presidential set-aside of foreign availability status
    determination.
    Sec. 213. Presidential set-aside of mass-market status determination.
    Sec. 214. Office of Technology Evaluation.

                   TITLE III--FOREIGN POLICY EXPORT CONTROLS

    Sec. 301. Authority for foreign policy export controls.
    Sec. 302. Procedures for imposing controls.
    Sec. 303. Criteria for foreign policy export controls.
    Sec. 304. Presidential report before imposition of control.
    Sec. 305. Imposition of controls.
    Sec. 306. Deferral authority.
    Sec. 307. Review, renewal, and termination.
    Sec. 308. Termination of controls under this title.
    Sec. 309. Compliance with international obligations.
    Sec. 310. Designation of countries supporting international terrorism.
    Sec. 311. Crime control instruments.
    Sec. 312. Measures to protect the public health.
    Sec. 313. Promotion of safe environments.

       TITLE IV--PROCEDURES FOR EXPORT LICENSES AND INTERAGENCY DISPUTE
                                   RESOLUTION

    Sec. 401. Export license procedures.
    Sec. 402. Interagency dispute resolution process.

     TITLE V--INTERNATIONAL ARRANGEMENTS; FOREIGN BOYCOTTS; SANCTIONS; AND
                                  ENFORCEMENT

    Sec. 501. International arrangements.
    Sec. 502. Foreign boycotts.
    Sec. 503. Penalties.
    Sec. 504. Missile proliferation control violations.
    Sec. 505. Chemical and biological weapons proliferation sanctions.
    Sec. 506. Enforcement.
    Sec. 507. Administrative procedure.

               TITLE VI--EXPORT CONTROL AUTHORITY AND REGULATIONS

    Sec. 601. Export control authority and regulations.
    Sec. 602. Confidentiality of information.

                        TITLE VII--EXPORTS OF SATELLITES

    Sec. 701. Applicability.
    Sec. 702. Export controls on satellites and related items.
    Sec. 703. Export license procedures.
    Sec. 704. Mandatory State Department review.
    Sec. 705. Definitions.
    Sec. 706. Conforming amendments.
    Sec. 707. Effective date.
    Sec. 708. Effect on existing law.

                      TITLE VIII--MISCELLANEOUS PROVISIONS

    Sec. 801. Annual report.
    Sec. 802. Relationship to the Arms Export Control Act.
    Sec. 803. Enhancement of congressional oversight of nuclear transfers
    to North Korea.
    Sec. 804. Procedures for consideration of joint resolutions.
    Sec. 805. Recommendations of the Judicial Review Commission on Foreign
    Asset Control.
    Sec. 806. Improvements to the automated export system.
    Sec. 807. Technical and conforming amendments.
    Sec. 808. Savings provisions.

    SEC. 2. DEFINITIONS.

        Except as otherwise expressly provided, in this Act:
                (1) Affiliate.--The term ``affiliate'' includes both
            governmental entities and commercial entities that are
            controlled in fact by the government of a country.
                (2) Control or controlled.--The terms ``control'' and
            ``controlled'' mean any requirement, condition, authorization,
            or prohibition on the export or reexport of an item.
                (3) Control list.--The term ``Control List'' means the
            Commerce Control List established under section 101.
                (4) Controlled country.--The term ``controlled country''
            means a country with respect to which exports are controlled
            under section 201 or 301.
                (5) Controlled item.--The term ``controlled item'' means an
            item the export of which is controlled under this Act.
                (6) Country.--The term ``country'' means a sovereign
            country or an autonomous customs territory.
                (7) Country supporting international terrorism.--The term
            ``country supporting international terrorism'' means a country
            designated by the Secretary of State pursuant to section 310.
                (8) Department.--The term ``Department'' means the
            Department of Commerce.
                (9) Export.--
                        (A) The term ``export'' means--
                                (i) an actual shipment, transfer, or
                            transmission of an item out of the United
                            States;
                                (ii) a transfer to any person of an item
                            either within the United States or outside of
                            the United States with the knowledge or intent
                            that the item will be shipped, transferred, or
                            transmitted to an unauthorized recipient
                            outside the United States;
                                (iii) the release of technology to a
                            foreign national within the United States; or
                                (iv) a transfer of an item in the United
                            States to an embassy or affiliate of a country,
                            which shall be considered an export to that
                            country.
                        (B) The term includes a reexport.
                (10) Foreign availability status.--The term ``foreign
            availability status'' means the status described in section
            211(d)(1).
                (11) Foreign person.--The term ``foreign person'' means--
                        (A) an individual who is not--
                                (i) a United States citizen;
                                (ii) an alien lawfully admitted for
                            permanent residence to the United States; or
                                (iii) a protected individual as defined in
                            section 274B(a)(3) of the Immigration and
                            Nationality Act. (8 U.S.C. 1324b(a)(3));
                        (B) 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
                        (C) any governmental entity of a foreign country.
                (12) Item.--
                        (A) In general.--The term ``item'' means any good,
                    technology, or service.
                        (B) Other definitions.--In this paragraph:
                                (i) Good.--The term ``good'' means any
                            article, natural or manmade substance,
                            material, supply or manufactured product,
                            including inspection and test equipment,
                            including source code, and excluding technical
                            data.
                                (ii) Technology.--The term ``technology''
                            means specific information that is necessary
                            for the development, production, or use of an
                            item, and takes the form of technical data or
                            technical assistance.
                                (iii) Service.--The term ``service'' means
                            any act of assistance, help, or aid.
                (13) Mass-market status.--The term ``mass-market status''
            means the status described in section 211(d)(2).
                (14) Multilateral export control regime.--The term
            ``multilateral export control regime'' means an international
            agreement or arrangement among two or more countries, including
            the United States, a purpose of which is to coordinate national
            export control policies of its members regarding certain items.
            The term includes regimes such as the Australia Group, the
            Wassenaar Arrangement, the Missile Technology Control Regime
            (MTCR), and the Nuclear Suppliers' Group Dual Use Arrangement.
                (15) National security control list.--The term ``National
            Security Control List'' means the list established under
            section 202(a).
                (16) Person.--The term ``person'' includes--
                        (A) any individual, or any 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 entity,
                    including any governmental entity operating as a
                    business enterprise.
                (17) Reexport.--The term ``reexport'' means the shipment,
            transfer, transshipment, or diversion of items from one foreign
            country to another.
                (18) Secretary.--The term ``Secretary'' means the Secretary
            of Commerce.
                (19) 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 (42 U.S.C. 1331(a)).
                (20) United states person.--The term ``United States
            person'' means--
                        (A) any United States citizen, resident, or
                    national (other than an individual resident outside the
                    United States who is employed by a person other than a
                    United States person);
                        (B) any domestic concern (including any permanent
                    domestic establishment of any foreign concern); and
                        (C) 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 prescribed by
                    the President.

                           TITLE I--GENERAL AUTHORITY

    SEC. 101. COMMERCE CONTROL LIST.

        (a) In General.--Under such conditions as the Secretary may impose,
    consistent with the provisions of this Act, the Secretary--
                (1) shall establish and maintain a Commerce Control List
            consisting of items the export of which are subject to
            licensing or other authorization or requirement; and
                (2) may require any type of license, or other
            authorization, including recordkeeping and reporting,
            appropriate to the effective and efficient implementation of
            this Act with respect to the export of an item on the Control
            List or otherwise subject to control under title II or III of
            this Act.
        (b) Types of License or Other Authorization.--The types of license
    or other authorization referred to in subsection (a)(2) include the
    following:
                (1) Specific exports.--A license that authorizes a specific
            export.
                (2) Multiple exports.--A license that authorizes multiple
            exports in lieu of a license for each export.
                (3) Notification in lieu of license.-- A notification in
            lieu of a license that authorizes a specific export or multiple
            exports subject to the condition that the exporter file with
            the Department advance notification of the intent to export in
            accordance with regulations prescribed by the Secretary.
                (4) License exception.--Authority to export an item on the
            Control List without prior license or notification in lieu of a
            license.
        (c) After-Market Service and Replacement Parts.--A license to
    export an item under this Act shall not be required for an exporter to
    provide after-market service or replacement parts in order to replace
    on a one-for-one basis parts that were in an item that was lawfully
    exported from the United States, unless--
                (1) the Secretary determines that such license is required
            to export such parts; or
                (2) the after-market service or replacement parts would
            materially enhance the capability of an item which was the
            basis for the item being controlled.
        (d) Incidental Technology.--A license or other authorization to
    export an item under this Act includes authorization to export
    technology related to the item, if the level of the technology does not
    exceed the minimum necessary to install, repair, maintain, inspect,
    operate, or use the item.

    SEC. 102. DELEGATION OF AUTHORITY.

        (a) In General.--Except as provided in subsection (b) and subject
    to the provisions of this Act, the President may delegate the power,
    authority, and discretion conferred upon the President by this Act to
    such departments, agencies, and officials of the Government as the
    President considers appropriate.
        (b) Exceptions.--
                (1) Delegation to appointees confirmed by senate.--No
            authority delegated to the President under this Act may be
            delegated by the President 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.
                (2) Other limitations.--The President may not delegate or
            transfer the President's 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 Act.

    SEC. 103. PUBLIC INFORMATION; CONSULTATION REQUIREMENTS.

        (a) Public Information.--The Secretary shall keep the public fully
    informed of changes in export control policy and procedures instituted
    in conformity with this Act.
        (b) Consultation With Persons Affected.--The Secretary shall
    consult regularly with representatives of a broad spectrum of
    enterprises, labor organizations, nonproliferation and national
    security experts, 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 or mass-market status of controlled
    items.

    SEC. 104. RIGHT OF EXPORT.

        No license or other authorization to export may be required under
    this Act, or under regulations issued under this Act, except to carry
    out the provisions of this Act.

    SEC. 105. EXPORT CONTROL ADVISORY COMMITTEES.

        (a) Appointment.--Upon the Secretary's 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
    Act or being considered for such controls, the Secretary may appoint
    export control advisory committees with respect to any such items. Each
    such committee shall consist of representatives of United States
    industry and Government officials, including officials from the
    Departments of Commerce, Defense, and State, and other appropriate
    departments and agencies of the Government. The Secretary shall permit
    the widest possible participation by the business community on the
    export control advisory committees.
        (b) Functions.--
                (1) In general.--Export control advisory committees
            appointed under subsection (a) shall advise and assist the
            Secretary, and any other department, agency, or official of the
            Government carrying out functions under this Act, on actions
            (including all aspects of controls imposed or proposed)
            designed to carry out the provisions of this Act concerning the
            items with respect to which such export control advisory
            committees were appointed.
                (2) Other consultations.--Nothing in paragraph (1) 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 control advisory committee. Members of the public shall
            be given a reasonable opportunity, pursuant to regulations
            prescribed by the Secretary, to present information to such
            committees.
        (c) Reimbursement of Expenses.--Upon the request of any member of
    any export control advisory committee appointed under subsection (a),
    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.
        (d) Chairperson.--Each export control advisory committee appointed
    under subsection (a) 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
    section. 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.
        (e) Access to Information.--To facilitate the work of the export
    control advisory committees appointed under subsection (a), 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
    and intelligence sources and methods, 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 control 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.

    SEC. 106. PRESIDENT'S TECHNOLOGY EXPORT COUNCIL.

        The President may establish a President's Technology Export Council
    to advise the President on the implementation, operation, and
    effectiveness of this Act.

    SEC. 107. PROHIBITION ON CHARGING FEES.

        No fee may be charged in connection with the submission or
    processing of an application for an export license under this Act.

                  TITLE II--NATIONAL SECURITY EXPORT CONTROLS

                      Subtitle A--Authority and Procedures

    SEC. 201. AUTHORITY FOR NATIONAL SECURITY EXPORT CONTROLS.

        (a) Authority.--
                (1) In general.--In order to carry out the purposes set
            forth in subsection (b), the President may, in accordance with
            the provisions of this Act, prohibit, curtail, or require a
            license, or other authorization for the export of any item
            subject to the jurisdiction of the United States or exported by
            any person subject to the jurisdiction of the United States.
            The President may also require recordkeeping and reporting with
            respect to the export of such item.
                (2) Exercise of authority.--The authority contained in this
            subsection shall be exercised by the Secretary, in consultation
            with the Secretary of Defense, the Secretary of State, the
            intelligence agencies, and the heads of such other departments
            and agencies as the Secretary considers appropriate.
        (b) Purposes.--The purposes of national security export controls
    are the following:
                (1) To restrict the export of items that would contribute
            to the military potential of countries so as to prove
            detrimental to the national security of the United States, its
            allies, or countries sharing common strategic objectives with
            the United States.
                (2) 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,
                    key-enabling technologies, 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.
                (3) To deter acts of international terrorism.
        (c) End Use and End User Controls.--
                (1) General authority.--(A) Notwithstanding any other
            provision of this Act, controls may be imposed, based on the
            end use or end user, on the export of any item, that could
            contribute to the proliferation of weapons of mass destruction
            or the means to deliver them.
                (B) The President shall seek to strengthen multilateral
            cooperation to identify more effectively end users of concern.
                (C) The Secretary shall establish and maintain a database
            listing end users of concern and develop a procedure by which
            exporters can utilize such database to screen prospective end
            users.
                (2) Presumption of denial of certain licenses.--
            Notwithstanding any other provision of this Act, there shall be
            a presumption of denial for the export of an item if the
            Secretary, with the concurrence of the Secretary of Defense and
            the Secretary of State, determines that there is a significant
            risk that--
                        (A) the end user designated to receive such item is
                    involved in a program or activity for the design,
                    development, manufacture, stockpiling, testing, or
                    other acquisition of a weapon of mass destruction or
                    the means to deliver such a weapon and is in a country
                    that is not an adherent to a multilateral export
                    control regime controlling such weapon or means of
                    delivery, unless the Secretary, with the concurrence of
                    the Secretary of Defense and the Secretary of State,
                    and in consultation with the intelligence agencies and
                    the head of any other department or agency of the
                    United States that the Secretary considers appropriate,
                    determines that such export would not make a material
                    contribution to such program or activity; or
                        (B) the export of such item would otherwise
                    contribute to the military capabilities of a country so
                    as to undermine regional stability or otherwise prove
                    detrimental to the national security of the United
                    States, a NATO ally, or major non-NATO ally.
                (3) Definition.--For purposes of this subsection, an
            ``adherent to a multilateral export control regime'' is--
                        (A) a country that is a member of a multilateral
                    export control regime;
                        (B) a country that, pursuant to an international
                    understanding to which the United States is a party,
                    controls exports in accordance with relevant criteria
                    and standards of a multilateral export control regime;
                    or
                        (C) a major non-NATO ally that, pursuant to its
                    national legislation, controls exports in accordance
                    with such criteria and standards.
        (d) Enhanced Control.--
                (1) In general.--Notwithstanding any other provision of
            this title, the President may determine that applying the
            provisions of section 204 or 211 with respect to an item on the
            National Security Control List could constitute a threat to the
            national security of the United States and that such item
            requires enhanced control, including the requirement for a
            license for such item. If the President determines that
            enhanced control should apply to such item, the item may be
            excluded from the provisions of sections 204 or 211, or both,
            until such time as the President determines that enhanced
            control should no longer apply to such item.
                (2) Control of items.--Notwithstanding any other provision
            of this Act, the President may identify items to be included on
            the National Security Control List, and any such item shall be
            included on that list.
                (3) Nondelegation.--The President may not delegate the
            authority provided under paragraphs (1) and (2).
                (4) Report to Congress.--The President shall promptly
            report any determination described in paragraph (1) or any
            items included on the National Security Control List under
            paragraph (2), along with the specific reasons for that
            determination or inclusion (as the case may be), to the
            Committee on International Relations of the House of
            Representatives and the Committee on Banking, Housing, and
            Urban Affairs of the Senate.
        (e) Presumption of Denial on Certain Licenses.--
                (1) Presumption.--Notwithstanding any other provision of
            law, when a license is required for export to any country of
            any item on the National Security Control List for any reason
            specified in subsection (b), there shall be a presumption of
            denial for the export of such item if there is a significant
            risk that--
                        (A) such item would contribute to the nuclear,
                    chemical, or biological weapons capabilities of such
                    country or the capabilities of such country to deliver
                    such weapons;
                        (B) such item would otherwise contribute to the
                    military capabilities of such country so as to
                    undermine regional stability or otherwise prove
                    detrimental to the national security of the United
                    States, a NATO ally, or major non-NATO ally;
                        (C) such item would likely be used or diverted to a
                    use or destination not authorized by the license or
                    United States policy; or
                        (D) the export of such item would otherwise
                    materially and adversely affect the national security
                    interests of the United States.
                (2) Exception.--Paragraph (1) shall not apply to the export
            of an item to a country that is an adherent to a multilateral
            export control regime controlling the export of such item.
                (3) Definition.--For purposes of this subsection, an
            ``adherent to a multilateral export control regime'' is--
                        (A) a country that is a member of a multilateral
                    export control regime;
                        (B) a country that, pursuant to an international
                    understanding to which the United States is a party,
                    controls exports in accordance with relevant criteria
                    and standards of a multilateral export control regime;
                    or
                        (C) a major non-NATO ally that, pursuant to its
                    national legislation, controls exports in accordance
                    with such criteria and standards.

    SEC. 202. NATIONAL SECURITY CONTROL LIST.

        (a) Establishment of List.--
                (1) Establishment.--The Secretary shall establish and
            maintain a National Security Control List, as part of the
            Control List.
                (2) Contents.--The National Security Control List shall be
            composed of a list of items the export of which is controlled
            for national security purposes under this title.
                (3) Identification of items for national security control
            list.--The Secretary, with the concurrence of the Secretary of
            Defense and the Secretary of State and in consultation with the
            head of any other department or agency of the United States
            that the Secretary considers appropriate, shall identify the
            items to be included on the National Security Control List,
            except that the National Security Control List shall, on the
            date of enactment of this Act, include all of the items on the
            Commerce Control List controlled on the day before the date of
            enactment of this Act to protect the national security of the
            United States, to prevent the proliferation of weapons of mass
            destruction and the means to deliver them, and to deter acts of
            international terrorism. The Secretary shall review on a
            continuing basis and, with the concurrence of the Secretary of
            Defense and the Secretary of State and in consultation with the
            head of any other department or agency of the United States
            that the Secretary considers appropriate, adjust the National
            Security Control List to add items that require control under
            this section and to remove items that no longer warrant control
            under this section.
        (b) Risk Assessment.--
                (1) Requirement.--In establishing and maintaining the
            National Security Control List, the risk factors set forth in
            paragraph (2) shall be considered, weighing national security
            concerns and economic costs.
                (2) Risk factors.--The risk factors referred to in
            paragraph (1), with respect to each item, are as follows:
                        (A) The characteristics of the item.
                        (B) The threat, if any, to the United States or the
                    national security interest of the United States from
                    the misuse or diversion of the item.
                        (C) The effectiveness of controlling the item for
                    national security purposes of the United States, taking
                    into account mass-market status, foreign availability,
                    and other relevant factors.
                        (D) The threat to the national security interests
                    of the United States if the item is not controlled.
                        (E) Any other appropriate risk factors.
        (c) Report on Control List.--Not later than 90 days after the date
    of enactment of this Act, the Secretary shall submit a report to
    Congress which lists all items on the Commerce Control List controlled
    on the day before the date of enactment of this Act to protect the
    national security of the United States, to prevent the proliferation of
    weapons of mass destruction and the means to deliver them, and to deter
    acts of international terrorism, not included on the National Security
    Control List pursuant to the provisions of this Act.

    SEC. 203. COUNTRY TIERS.

        (a) In General.--
                (1) Establishment and assignment.--In administering export
            controls for national security purposes under this title, the
            President shall, not later than 120 days after the date of
            enactment of this Act--
                        (A) establish and maintain a country tiering system
                    in accordance with subsection (b); and
                        (B) based on the assessments required under
                    subsection (c), assign each country to an appropriate
                    tier for each item or group of items the export of
                    which is controlled for national security purposes
                    under this title.
                (2) Consultation.--The establishment and assignment of
            country tiers under this section shall be made after
            consultation with the Secretary, the Secretary of Defense, the
            Secretary of State, the intelligence agencies, and the heads of
            such other departments and agencies as the President considers
            appropriate.
                (3) Redetermination and review of assignments.--The
            President may redetermine the assignment of a country to a
            particular tier at any time and shall review and, as the
            President considers appropriate, reassign country tiers on an
            on-going basis. The Secretary shall provide notice of any such
            reassignment to the Committee on Banking, Housing, and Urban
            Affairs of the Senate and the Committee on International
            Relations of the House of Representatives.
                (4) Effective date of tier assignment.-- An assignment of a
            country to a particular tier shall take effect on the date on
            which notice of the assignment is published in the Federal
            Register.
        (b) Tiers.--
                (1) In general.--The President shall establish a country
            tiering system consisting of not less than 3 tiers for purposes
            of this section.
                (2) Range.--Countries that represent the lowest risk of
            diversion or misuse of an item on the National Security Control
            List shall be assigned to the lowest tier. Countries that
            represent the highest risk of diversion or misuse of an item on
            the National Security Control List shall be assigned to the
            highest tier.
                (3) Other countries.--Countries that fall between the
            lowest and highest risk to the national security interest of
            the United States with respect to the risk of diversion or
            misuse of an item on the National Security Control List shall
            be assigned to a tier other than the lowest or highest tier,
            based on the assessments required under subsection (c).
        (c) Assessments.--The President shall make an assessment of each
    country in assigning a country tier taking into consideration risk
    factors that include the following:
                (1) The present and potential relationship of the country
            with the United States.
                (2) The present and potential relationship of the country
            with countries friendly to the United States and with countries
            hostile to the United States.
                (3) The country's goals, capabilities, and intentions
            regarding chemical, biological, and nuclear weapons and the
            country's membership in or adherence to, and level of
            compliance with, relevant multilateral export control regimes.
                (4) The country's capabilities regarding missile systems
            and the country's membership in or adherence to, and level of
            compliance with, relevant multilateral export control regimes.
                (5) Whether the country, if a NATO or major non-NATO ally
            with whom the United States has entered into a free trade
            agreement as of January 1, 1986, controls exports in accordance
            with the criteria and standards of a multilateral export
            control regime.
                (6) The country's other military capabilities and the
            potential threat posed by the country to the United States or
            its allies.
                (7) The effectiveness of the country's export control
            system.
                (8) The level of the country's cooperation with United
            States export control enforcement and other efforts.
                (9) The risk of export diversion by the country to a higher
            tier country.
                (10) The designation of the country as a country supporting
            international terrorism under section 310.
                (11) The extent to which the country, pursuant to its laws,
            regulations, and practices, controls items consistent with the
            criteria and standards of relevant multilateral export control
            regimes.
        (d) Tier Application.--The country tiering system shall be used in
    the determination of license requirements pursuant to section
    201(a)(1).

    SEC. 204. INCORPORATED PARTS AND COMPONENTS.

        (a) Export of Items Containing Controlled Parts and Components.--
    Controls may not be imposed under this title or any other provision of
    law on an item solely because the item contains parts or components
    subject to export controls under this title, if the parts or
    components--
                (1) are essential to the functioning of the item,
                (2) are customarily included in sales of the item in
            countries other than controlled countries, and
                (3) comprise 25 percent or less of the total value of the
            item,
    unless the item itself, if exported, would by virtue of the functional
    characteristics of the item 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, or unless failure to control the item would be contrary
    to the provisions of section 201(c), section 201(d), or section 309 of
    this Act.
        (b) Reexports of Foreign-Made Items Incorporating United States
    Controlled Content.--
                (1) In general.--No authority or permission may be required
            under this title to reexport to a country an item that is
            produced in a country other than the United States and
            incorporates parts or components that are subject to the
            jurisdiction of the United States, if the value of the
            controlled United States content of the item produced in such
            other country is 25 percent or less of the total value of the
            item; except that in the case of reexports of an item to a
            country designated as a country supporting international
            terrorism pursuant to section 310, controls may be maintained
            if the value of the controlled United States content is more
            than 10 percent of the total value of the item.
                (2) Definition of controlled united states content.--For
            purposes of this paragraph, the term ``controlled United States
            content'' of an item means those parts or components that--
                        (A) are subject to the jurisdiction of the United
                    States;
                        (B) are incorporated into the item; and
                        (C) would, at the time of the reexport, require a
                    license under this title if exported from the United
                    States to a country to which the item is to be
                    reexported.

    SEC. 205. PETITION PROCESS FOR MODIFYING EXPORT STATUS.

        (a) Establishment.--The Secretary shall establish a process for
    interested persons to petition the Secretary to change the status of an
    item on the National Security Control List.
        (b) Evaluations and Determinations.--Evaluations and determinations
    with respect to a petition filed pursuant to this section shall be made
    in accordance with section 202.

            Subtitle B--Foreign Availability and Mass-Market Status

    SEC. 211. DETERMINATION OF FOREIGN AVAILABILITY AND MASS-MARKET STATUS.

        (a) In General.--The Secretary shall--
                (1) on a continuing basis,
                (2) upon a request from the Office of Technology Evaluation
            established pursuant to section 214, or
                (3) upon receipt of a petition filed by an interested
            person,
    review and determine the foreign availability and the mass-market
    status of any item the export of which is controlled under this title.
        (b) Petition and Consultation.--
                (1) In general.--The Secretary shall establish a process
            for an interested person to petition the Secretary for a
            determination that an item has a foreign availability or mass-
            market status. In evaluating and making a determination with
            respect to a petition filed under this section, the Secretary
            shall consult with the Secretary of Defense, the Secretary of
            State, and the heads of other appropriate Government agencies
            and with the Office of Technology Evaluation.
                (2) Time for making determination.--The Secretary shall,
            within 6 months after receiving a petition described in
            subsection (a)(3), determine whether the item that is the
            subject of the petition has foreign availability or mass-market
            status and shall notify the petitioner of the determination.
        (c) Result of Determination.--In any case in which the Secretary
    determines, in accordance with procedures and criteria which the
    Secretary shall by regulation establish, that an item described in
    subsection (a) has--
                (1) a foreign availability status, or
                (2) a mass-market status,
    the Secretary shall notify the President (and other appropriate
    departments and agencies) and publish the notice of the determination
    in the Federal Register. The Secretary's determination shall become
    final 30 days after the date the notice is published, the item shall be
    removed from the National Security Control List, and a license or other
    authorization shall not be required under this title with respect to
    the item, unless the President makes a determination described in
    section 212 or 213, or takes action under section 309, with respect to
    the item in that 30-day period.
        (d) Criteria for Determining Foreign Availability and Mass-Market
    Status.--
                (1) Foreign availability status.--The Secretary shall
            determine that an item has foreign availability status under
            this subtitle, if the item (or a substantially identical or
            directly competitive item)--
                        (A) is available to controlled countries from
                    sources outside the United States, including countries
                    that participate with the United States in multilateral
                    export controls;
                        (B) can be acquired at a price that is not
                    excessive when compared to the price at which a
                    controlled country could acquire such item from sources
                    within the United States in the absence of export
                    controls; and
                        (C) is available in sufficient quantity so that the
                    requirement of a license or other authorization with
                    respect to the export of such item is or would be
                    ineffective.
                (2) Mass-market status.--
                        (A) In general.--In determining whether an item has
                    mass-market status under this subtitle, the Secretary
                    shall consider the following criteria with respect to
                    the item (or a substantially identical or directly
                    competitive item):
                                (i) The production and availability for
                            sale in a large volume to multiple potential
                            purchasers.
                                (ii) The widespread distribution through
                            normal commercial channels, such as retail
                            stores, direct marketing catalogues, electronic
                            commerce, and other channels.
                                (iii) The conduciveness to shipment and
                            delivery by generally accepted commercial means
                            of transport.
                                (iv) The use for the item's normal intended
                            purpose without substantial and specialized
                            service provided by the manufacturer,
                            distributor, or other third party.
                        (B) Determination by secretary.--If the Secretary
                    finds that the item (or a substantially identical or
                    directly competitive item) meets the criteria set forth
                    in subparagraph (A), the Secretary shall determine that
                    the item has mass-market status.
                (3) Special rules.--For purposes of this subtitle--
                        (A) Substantially identical item.--The
                    determination of whether an item in relation to another
                    item is a substantially identical item shall include a
                    fair assessment of end uses, and the properties,
                    nature, and quality of the item.
                        (B) Directly competitive item.--The determination
                    of whether an item in relation to another item is a
                    directly competitive item shall include a fair
                    assessment of whether the item, although not
                    substantially identical in its intrinsic or inherent
                    characteristics, is substantially equivalent for
                    commercial purposes and may be adapted for
                    substantially the same uses.
                        (C) Exception.--An item is not a directly
                    competitive item or a substantially identical item in
                    relation to a controlled item if the item is not of
                    comparable quality to the controlled item with respect
                    to characteristics that resulted in the export of the
                    item being controlled.

    SEC. 212. PRESIDENTIAL SET-ASIDE OF FOREIGN AVAILABILITY STATUS
                        DETERMINATION.

        (a) Criteria for Presidential Set-Aside.--
                (1) General criteria.--
                        (A) In general.--If the President determines that--
                                (i) decontrolling or failing to control an
                            item constitutes a threat to the national
                            security of the United States, and export
                            controls on the item would advance the national
                            security interests of the United States,
                                (ii) there is a high probability that the
                            foreign availability of an item will be
                            eliminated through international negotiations
                            within a reasonable period of time taking into
                            account the characteristics of the item, or
                                (iii) United States controls on the item
                            have been imposed under section 309,
                    the President may set aside the Secretary's
                    determination of foreign availability status with
                    respect to the item.
                        (B) Nondelegation.--The President may not delegate
                    the authority provided for in this paragraph.
                (2) Report to congress.--The President shall promptly--
                        (A) report any set-aside determination described in
                    paragraph (1), along with the specific reasons for the
                    determination, to the Committee on Banking, Housing,
                    and Urban Affairs of the Senate and the Committee on
                    International Relations of the House of
                    Representatives; and
                        (B) publish the determination in the Federal
                    Register.
        (b) Presidential Action in Case of Set-Aside.--
                (1) In general.--
                        (A) Negotiations.--In any case in which export
                    controls are maintained on an item because the
                    President has made a determination under subsection
                    (a), the President shall actively pursue negotiations
                    with the governments of the appropriate foreign
                    countries for the purpose of eliminating such
                    availability.
                        (B) Report to congress.--Not later than the date
                    the President begins negotiations, the President shall
                    notify in writing the Committee on Banking, Housing,
                    and Urban Affairs of the Senate and the Committee on
                    International Relations of the House of Representatives
                    that the President has begun such negotiations and why
                    the President believes it is important to the national
                    security that export controls on the item involved be
                    maintained.
                (2) Periodic review of determination.--The President shall
            review a determination described in subsection (a) at least
            every 6 months. Promptly after each review is completed, the
            Secretary shall submit to the committees of Congress referred
            to in paragraph (1)(B) a report on the results of the review,
            together with the status of international negotiations to
            eliminate the foreign availability of the item.
                (3) Expiration of presidential set-aside.--A determination
            by the President described in subsection (a)(1)(A) (i) or (ii)
            shall cease to apply with respect to an item on the earlier
            of--
                        (A) the date that is 6 months after the date on
                    which the determination is made under subsection (a),
                    if the President has not commenced international
                    negotiations to eliminate the foreign availability of
                    the item within that 6-month period;
                        (B) the date on which the negotiations described in
                    paragraph (1) have terminated without achieving an
                    agreement to eliminate foreign availability;
                        (C) the date on which the President determines that
                    there is not a high probability of eliminating foreign
                    availability of the item through negotiation; or
                        (D) the date that is 18 months after the date on
                    which the determination described in subsection
                    (a)(1)(A) (i) or (ii) is made if the President has been
                    unable to achieve an agreement to eliminate foreign
                    availability within that 18-month period.
                (4) Action on expiration of presidential set-aside.--Upon
            the expiration of a Presidential set-aside under paragraph (3)
            with respect to an item, the Secretary shall not require a
            license or other authorization to export the item.

    SEC. 213. PRESIDENTIAL SET-ASIDE OF MASS-MARKET STATUS DETERMINATION.

        (a) Criteria for Presidential Set-Aside.--
                (1) General criteria.--If the President determines that--
                        (A)(i) decontrolling or failing to control an item
                    constitutes a serious threat to the national security
                    of the United States, and
                        (ii) export controls on the item would advance the
                    national security interests of the United States, or
                        (B) United States controls on the item have been
                    imposed under section 309,
            the President may set aside the Secretary's determination of
            mass-market status with respect to the item.
                (2) Nondelegation.--The President may not delegate the
            authority provided for in this subsection.
        (b) Presidential Action in Case of Set-Aside.--
                (1) In general.--In any case in which export controls are
            maintained on an item because the President has made a
            determination under subsection (a), the President shall
            promptly report the determination, along with the specific
            reasons for the determination, to the Committee on Banking,
            Housing, and Urban Affairs of the Senate and the Committee on
            International Relations of the House of Representatives, and
            shall publish notice of the determination in the Federal
            Register not later than 30 days after the Secretary publishes
            notice of the Secretary's determination that an item has mass-
            market status.
                (2) Periodic review of determination.--The President shall
            review a determination made under subsection (a) at least every
            6 months. Promptly after each review is completed, the
            Secretary shall submit a report on the results of the review to
            the Committee on Banking, Housing, and Urban Affairs of the
            Senate and the Committee on International Relations of the
            House of Representatives.

    SEC. 214. OFFICE OF TECHNOLOGY EVALUATION.

        (a) In General.--
                (1) Establishment of office.--The Secretary shall establish
            in the Department of Commerce an Office of Technology
            Evaluation (in this section referred to as the ``Office''),
            which shall be under the direction of the Secretary. The Office
            shall be responsible for gathering, coordinating, and analyzing
            all the necessary information in order for the Secretary to
            make determinations of foreign availability and mass-market
            status under this Act.
                (2) Staff.--
                        (A) In general.--The Secretary shall ensure that
                    the Office include persons to carry out the
                    responsibilities set forth in subsection (b) of this
                    section that have training, expertise, and experience
                    in--
                                (i) economic analysis;
                                (ii) the defense industrial base;
                                (iii) technological developments; and
                                (iv) national security and foreign policy
                            export controls.
                        (B) Detailees.--In addition to employees of the
                    Department of Commerce, the Secretary may accept on
                    nonreimbursable detail to the Office, employees of the
                    Departments of Defense, State, and Energy and other
                    departments and agencies as appropriate.
        (b) Responsibilities.--The Office shall be responsible for--
                (1) conducting foreign availability assessments to
            determine whether a controlled item is available to controlled
            countries and whether requiring a license, or denial of a
            license for the export of such item, is or would be
            ineffective;
                (2) conducting mass-market assessments to determine whether
            a controlled item is available to controlled countries because
            of the mass-market status of the item;
                (3) monitoring and evaluating worldwide technological
            developments in industry sectors critical to the national
            security interests of the United States to determine foreign
            availability and mass-market status of controlled items;
                (4) monitoring and evaluating multilateral export control
            regimes and foreign government export control policies and
            practices that affect the national security interests of the
            United States;
                (5) conducting assessments of United States industrial
            sectors critical to the United States defense industrial base
            and how the sectors are affected by technological developments,
            technology transfers, and foreign competition; and
                (6) conducting assessments of the impact of United States
            export control policies on--
                        (A) United States industrial sectors critical to
                    the national security interests of the United States;
                    and
                        (B) the United States economy in general.
        (c) Reports to Congress.--The Secretary shall make available to the
    Committee on International Relations of the House of Representatives
    and the Committee on Banking, Housing, and Urban Affairs of the Senate
    as part of the Secretary's annual report required under section 701
    information on the operations of the Office, and on improvements in the
    Government's ability to assess foreign availability and mass-market
    status, during the fiscal year preceding the report, including
    information on the training of personnel, and the use of Commercial
    Service Officers of the United States and Foreign Commercial Service to
    assist in making determinations. The information shall also include a
    description of determinations made under this Act during the preceding
    fiscal year that foreign availability or mass-market status did or did
    not exist (as the case may be), together with an explanation of the
    determinations.
        (d) 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, consistent with the need to
    protect intelligence sources and methods, furnish information to the
    Office concerning foreign availability and the mass-market status of
    items subject to export controls under this Act.

                   TITLE III--FOREIGN POLICY EXPORT CONTROLS

    SEC. 301. AUTHORITY FOR FOREIGN POLICY EXPORT CONTROLS.

        (a) Authority.--
                (1) In general.--In order to carry out the purposes set
            forth in subsection (b), the President may, in accordance with
            the provisions of this Act, prohibit, curtail, or require a
            license, other authorization, recordkeeping, or reporting for,
            the export of any item subject to the jurisdiction of the
            United States or exported by any person subject to the
            jurisdiction of the United States.
                (2) Exercise of authority.--The authority contained in this
            subsection shall be exercised by the Secretary, in consultation
            with the Secretary of State and such other departments and
            agencies as the Secretary considers appropriate.
        (b) Purposes.--The purposes of foreign policy export controls are
    the following:
                (1) To promote the foreign policy objectives of the United
            States, consistent with the purposes of this section and the
            provisions of this Act.
                (2) To promote international peace, stability, and respect
            for fundamental human rights.
                (3) 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.
                (4) To control the export of test articles intended for
            clinical investigation involving human subjects so as 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.
                (5) To control the export of goods and substances which are
            banned, severely restricted, highly regulated, or never
            regulated 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.
        (c) Foreign Products.--No authority or permission may be required
    under this title to reexport to a country an item that is produced in a
    country other than the United States and incorporates parts or
    components that are subject to the jurisdiction of the United States,
    except that in the case of reexports of an item to a country designated
    as a country supporting international terrorism pursuant to section
    310, controls may be maintained if the value of the controlled United
    States content is more than 10 percent of the value of the item.
        (d) Contract Sanctity.--
                (1) In general.--The President may not prohibit the export
            of any item under this title if that item is to be exported--
                        (A) in performance of a binding contract,
                    agreement, or other contractual commitment entered into
                    before the earlier of the date on which the President
                    publishes in the Federal Register pursuant to section
                    302(a) a notice of intent to impose or implement an
                    export control on that item or the date on which the
                    President reports to Congress the President's intention
                    to impose an export control on that item under this
                    title; or
                        (B) under a license or other authorization issued
                    under this Act before the earlier of the date on which
                    the export control is imposed, the date on which the
                    President publishes in the Federal Register pursuant to
                    section 302(a) a notice of intent to impose or
                    implement an export control on that item, or the date
                    on which the President reports to Congress the
                    President's intention to impose an export control on
                    that item under this title.
                (2) Exception.--The prohibition contained in paragraph (1)
            shall not apply in any case in which the President determines
            and certifies to the Committee on Banking, Housing, and Urban
            Affairs of the Senate and the Committee on International
            Relations of the House of Representatives that--
                        (A) there is a serious threat to a foreign policy
                    interest of the United States;
                        (B) the prohibition of exports under each binding
                    contract, agreement, commitment, license, or
                    authorization will be instrumental in remedying the
                    situation posing the serious threat; and
                        (C) the export controls will be in effect only as
                    long as the serious threat exists.

    SEC. 302. PROCEDURES FOR IMPOSING CONTROLS.

        (a) Notice.--
                (1) Intent to impose foreign policy export control.--Except
            as provided in section 306, not later than 45 days before
            imposing or implementing an export control under this title,
            the President shall publish in the Federal Register--
                        (A) a notice of intent to do so; and
                        (B) provide for a period of not less than 30 days
                    for any interested person to submit comments on the
                    export control proposed under this title.
                (2) Purposes of notice.--The purposes of the notice are--
                        (A) to provide an opportunity for the formulation
                    of an effective export control policy under this title
                    that advances United States economic and foreign policy
                    interests; and
                        (B) to provide an opportunity for negotiations to
                    achieve the purposes set forth in section 301(b).
        (b) Negotiations.--During the 45-day period that begins on the date
    of notice described in subsection (a), the President may negotiate with
    the government of the foreign country against which the export control
    is proposed in order to resolve the reasons underlying the proposed
    export control.
        (c) Consultation.--
                (1) Requirement.--The President shall consult with the
            Committee on Banking, Housing, and Urban Affairs of the Senate
            and the Committee on International Relations of the House of
            Representatives regarding any export control proposed under
            this title and the efforts to achieve or increase multilateral
            cooperation on the issues or problems underlying the proposed
            export control.
                (2) Classified consultation.--The consultations described
            in paragraph (1) may be conducted on a classified basis if the
            Secretary considers it necessary.

    SEC. 303. CRITERIA FOR FOREIGN POLICY EXPORT CONTROLS.

        Each export control imposed by the President under this title
    shall--
                (1) have clearly stated and specific United States foreign
            policy objectives;
                (2) have objective standards for evaluating the success or
            failure of the export control;
                (3) include an assessment by the President that--
                        (A) the export control is likely to achieve such
                    objectives and the expected time for achieving the
                    objectives; and
                        (B) the achievement of the objectives of the export
                    control outweighs any potential costs of the export
                    control to other United States economic, foreign
                    policy, humanitarian, or national security interests;
                (4) be targeted narrowly; and
                (5) seek to minimize any adverse impact on the humanitarian
            activities of United States and foreign nongovernmental
            organizations in the country subject to the export control.

    SEC. 304. PRESIDENTIAL REPORT BEFORE IMPOSITION OF CONTROL.

        (a) Requirement.--Before imposing an export control under this
    title, the President shall submit to the Committee on Banking, Housing,
    and Urban Affairs of the Senate and the Committee on International
    Relations of the House of Representatives a report on the proposed
    export control. The report may be provided on a classified basis if the
    Secretary considers it necessary.
        (b) Content.--The report shall contain a description and assessment
    of each of the criteria described in section 303. In addition, the
    report shall contain a description and assessment of--
                (1) any diplomatic and other steps that the United States
            has taken to accomplish the intended objective of the proposed
            export control;
                (2) unilateral export controls imposed, and other measures
            taken, by other countries to achieve the intended objective of
            the proposed export control;
                (3) the likelihood of multilateral adoption of comparable
            export controls;
                (4) alternative measures to promote the same objectives and
            the likelihood of their potential success;
                (5) any United States obligations under international trade
            agreements, treaties, or other international arrangements, with
            which the proposed export control may conflict;
                (6) the likelihood that the proposed export control could
            lead to retaliation against United States interests;
                (7) the likely economic impact of the proposed export
            control on the United States economy, United States
            international trade and investment, and United States
            agricultural interests, commercial interests, and employment;
            and
                (8) whether the objectives of the proposed export control
            outweighs any likely costs to United States economic, foreign
            policy, humanitarian, or national security interests, including
            any potential harm to the United States agricultural and
            business firms and to the international reputation of the
            United States as a reliable supplier of goods, services, or
            technology.

    SEC. 305. IMPOSITION OF CONTROLS.

        The President may impose an export control under this title after
    the submission of the report required under section 304 and publication
    in the Federal Register of a notice of the imposition of the export
    control.

    SEC. 306. DEFERRAL AUTHORITY.

        (a) Authority.--The President may defer compliance with any
    requirement contained in section 302(a), 304, or 305 in the case of a
    proposed export control if--
                (1) the President determines that a deferral of compliance
            with the requirement is in the national interest of the United
            States; and
                (2) the requirement is satisfied not later than 60 days
            after the date on which the export control is imposed under
            this title.
        (b) Termination of Control.--An export control with respect to
    which a deferral has been made under subsection (a) shall terminate 60
    days after the date the export control is imposed unless all
    requirements have been satisfied before the expiration of that 60-day
    period.

    SEC. 307. REVIEW, RENEWAL, AND TERMINATION.

        (a) Renewal and Termination.--
                (1) In general.--Any export control imposed under this
            title shall terminate on March 31 of each renewal year unless
            the President renews the export control on or before such date.
            For purposes of this section, the term ``renewal year'' means
            2003 and every 2 years thereafter.
                (2) Exception.--This section shall not apply to an export
            control imposed under this title that--
                        (A) is required by law;
                        (B) is targeted against any country designated as a
                    country supporting international terrorism pursuant to
                    section 310; or
                        (C) has been in effect for less than 1 year as of
                    February 1 of a renewal year.
        (b) Review.--
                (1) In general.--Not later than February 1 of each renewal
            year, the President shall review all export controls in effect
            under this title.
                (2) Consultation.--
                        (A) Requirement.--Before completing a review under
                    paragraph (1), the President shall consult with the
                    Committee on Banking, Housing, and Urban Affairs of the
                    Senate and the Committee on International Relations of
                    the House of Representative regarding each export
                    control that is being reviewed.
                        (B) Classified consultation.--The consultations may
                    be conducted on a classified basis if the Secretary
                    considers it necessary.
                (3) Public comment.--In conducting the review of each
            export control under paragraph (1), the President shall provide
            a period of not less than 30 days for any interested person to
            submit comments on renewal of the export control. The President
            shall publish notice of the opportunity for public comment in
            the Federal Register not less than 45 days before the review is
            required to be completed.
        (c) Report to Congress.--
                (1) Requirement.--Before renewing an export control imposed
            under this title, the President shall submit to the committees
            of Congress referred to in subsection (b)(2)(A) a report on
            each export control that the President intends to renew.
                (2) Form and content of report.--The report may be provided
            on a classified basis if the Secretary considers it necessary.
            Each report shall contain the following:
                        (A) A clearly stated explanation of the specific
                    United States foreign policy objective that the
                    existing export control was intended to achieve.
                        (B) An assessment of--
                                (i) the extent to which the existing export
                            control achieved its objectives before renewal
                            based on the objective criteria established for
                            evaluating the export control; and
                                (ii) the reasons why the existing export
                            control has failed to fully achieve its
                            objectives and, if renewed, how the export
                            control will achieve that objective before the
                            next renewal year.
                        (C) An updated description and assessment of--
                                (i) each of the criteria described in
                            section 303, and
                                (ii) each matter required to be reported
                            under section 304(b) (1) through (8).
                (3) Renewal of export control.--The President may renew an
            export control under this title after submission of the report
            described in paragraph (2) and publication of notice of renewal
            in the Federal Register.

    SEC. 308. TERMINATION OF CONTROLS UNDER THIS TITLE.

        (a) In General.--Notwithstanding any other provision of law, the
    President--
                (1) shall terminate any export control imposed under this
            title if the President determines that the control has
            substantially achieved the objective for which it was imposed;
            and
                (2) may terminate at any time any export control imposed
            under this title that is not required by law.
        (b) Exception.--Paragraphs (1) and (2) of subsection (a) do not
    apply to any export control imposed pursuant to section 310.
        (c) Effective Date of Termination.--The termination of an export
    control pursuant to this section shall take effect 30 days after the
    President has consulted with the Committee on International Relations
    of the House of Representatives and the Committee on Foreign Relations
    of the Senate on the foreign policy implications of such termination.
    Notice of the termination shall be published in the Federal Register.

    SEC. 309. COMPLIANCE WITH INTERNATIONAL OBLIGATIONS.

        Notwithstanding any other provision of this Act setting forth
    limitations on authority to control exports and except as provided in
    section 304, the President may impose controls on exports to a
    particular country or countries--
                (1) of items listed on the control list of a multilateral
            export control regime; or
                (2) in order to fulfill obligations or commitments of the
            United States under resolutions of the United Nations and under
            treaties, or other international agreements and arrangements,
            to which the United States is a party.

    SEC. 310. DESIGNATION OF COUNTRIES SUPPORTING INTERNATIONAL TERRORISM.

        (a) License Required.--Notwithstanding any other provision of this
    Act setting forth limitations on the authority to control exports, a
    license shall be required for the export of any item to a country if
    the Secretary of State has determined that--
                (1) the government of such country has repeatedly provided
            support for acts of international terrorism; and
                (2) the export of the item 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.
        (b) Notification.--The Secretary and the Secretary of State shall
    notify the Committee on International Relations of the House of
    Representatives and the Committee on Banking, Housing, and Urban
    Affairs and the Committee on Foreign Relations of the Senate at least
    30 days before issuing any license required by subsection (a).
        (c) Determinations Regarding Repeated Support.--Each determination
    of the Secretary of State under subsection (a)(1), 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.
        (d) Limitations on Rescinding Determination.--A determination made
    by the Secretary of State under subsection (a)(1) 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--
                (1) before the proposed rescission would take effect, a
            report certifying that--
                        (A) there has been a fundamental change in the
                    leadership and policies of the government of the
                    country concerned;
                        (B) that government is not supporting acts of
                    international terrorism; and
                        (C) that government has provided assurances that it
                    will not support acts of international terrorism in the
                    future; or
                (2) at least 45 days before the proposed rescission would
            take effect, a report justifying the rescission and certifying
            that--
                        (A) the government concerned has not provided any
                    support for international terrorism during the
                    preceding 6-month period; and
                        (B) the government concerned has provided
                    assurances that it will not support acts of
                    international terrorism in the future.
        (e) Information To Be Included in Notification.--The Secretary and
    the Secretary of State shall include in the notification required by
    subsection (b)--
                (1) a detailed description of the item to be offered,
            including a brief description of the capabilities of any item
            for which a license to export is sought;
                (2) the reasons why the foreign country or international
            organization to which the export or transfer is proposed to be
            made needs the item which is the subject of such export or
            transfer and a description of the manner in which such country
            or organization intends to use the item;
                (3) the reasons why the proposed export or transfer is in
            the national interest of the United States;
                (4) 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;
                (5) an analysis of the manner in which the proposed export
            would affect the relative military strengths of countries in
            the region to which the item which is the subject of such
            export would be delivered and whether other countries in the
            region have comparable kinds and amounts of the item; and
                (6) 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 item which is the subject of such
            export would be delivered.

    SEC. 311. CRIME CONTROL INSTRUMENTS.

        (a) In General.--Crime control and detection instruments and
    equipment shall not be approved for export by the Secretary except
    pursuant to an individual export license.
        (b) Implementation.--Notwithstanding any other provision of this
    Act--
                (1) any determination by the Secretary of what goods or
            technology shall be included on the list established pursuant
            to this subsection as a result of the export restrictions
            imposed by this section shall be made with the concurrence of
            the Secretary of State; and
                (2) any determination by 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 401 of this Act.
        (c) Limitation.--
                (1)  In general.--Notwithstanding subsection (b), the
            Secretary shall not approve the export to a country of crime
            control and detection instruments and equipment especially
            susceptible to abuse as implements of torture if the government
            of such country, or any group supported by or acting on behalf
            of such government, has repeatedly engaged in acts of torture
            unless the Secretary, with the concurrence of the Secretary of
            State, determines that the end user of the instruments or
            equipment proposed for export has not been engaged in acts of
            torture.
                (2) List.--The Secretary shall establish and maintain a
            list of crime control and detection instruments and equipment
            especially susceptible to abuse as implements of torture for
            purposes of paragraph (1), and shall publish such list in the
            Federal Register.
        (d) Exception.--Subsection (a) shall not apply to exports to
    countries that are NATO or are major non-NATO allies.
        (e) Prohibition.--Notwithstanding any other provision of this
    section, including subsection (d), the export to any country of leg
    irons, saps, blackjacks, electroshock stun belts, thumb cuffs, and
    items specially designed as implements of torture, as determined by the
    Secretary, including components produced for incorporation into these
    items and the technology used for the development or production of
    these items, shall be prohibited.
        (f) Definition.--For purposes of this section, the term ``acts of
    torture'' means acts committed by a person acting under the color of
    law that are specifically intended to inflict severe physical or mental
    pain or suffering (other than pain or suffering incidental to lawful
    sanctions) upon another person within the custody or physical control
    of the person performing the acts.

    SEC. 312. MEASURES TO PROTECT THE PUBLIC HEALTH.

        (a) In General.--In order to carry out the policy set forth in
    paragraph (4) of section 301(b), test articles intended for clinical
    investigations shall be approved for export by the President only
    pursuant to an export license.
        (b) Criteria for Export License.--In addition to the criteria set
    forth in paragraph (4) of section 401(a), the President shall require,
    as a prerequisite for approval of an export license for a test article
    required by subsection (a) of this section, that an applicant for such
    license--
                (1) identify each clinical investigation for which the test
            article is intended; and
                (2) submit proof that each of the protocols for every
            clinical investigation identified under paragraph (1) has been
            reviewed by an institutional review board and met the same
            standards for the protection of the rights and welfare of human
            subjects as would be required for IRB approval of the protocol
            if the protocol were for a clinical investigation of such test
            article pursuant to the Federal Food, Drug, and Cosmetic Act.
        (c) Reporting Requirement.--Not later than one year after the date
    of enactment of this Act, and annually thereafter, the President shall
    prepare and submit to the appropriate congressional committees a report
    regarding the approval of export licenses as required by subsection
    (a). Such report shall include--
                (1) the names of the applicants for such export licenses;
                (2) the names of approved applicants for such export
            licenses; and
                (3) the destination country or countries for each
            application for such export licenses.
        (d) Exception.--The provisions of this section shall not apply if
    the destination country is a full member of the Europen Union, a full
    member of the European Free Trade Association, Canada, Japan,
    Australia, Israel, or New Zealand.
        (e) Definitions.--In this section:
                (1) Application for research or marketing permit.--The term
            ``application for research or marketing permit'' has the
            meaning given that term in section 56.102(b) of title 21, Code
            of Federal Regulations, or successor regulations.
                (2) Appropriate congressional committees.--The term
            ``appropriate congressional committees'' means the Committee on
            International Relations of the House of Representatives and the
            Committee on Banking, Housing, and Urban Affairs of the Senate.
                (3) Clinical investigation.--The term ``clinical
            investigation'' means any experiment that involves a test
            article and one or more human subjects, and that either must
            meet the requirements for prior submission to the Food and Drug
            Administration under section 505(i), 507(d), or 520(g) of the
            Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355(i), 357(d),
            or 360j(g)), or need not meet the requirements for prior
            submission to the Food and Drug Administration under those
            sections, but the results of which are intended to be later
            submitted to, or held for inspection by, the Food and Drug
            Administration as part of an application for a research or
            marketing permit. The term does not include experiments that
            must meet the provisions of part 58 of title 21, Code of
            Federal Regulations, or successor regulations, regarding
            nonclinical laboratory studies.
                (4) Destination country.--The term ``destination country''
            means the country into which test articles are being exported.
                (5) Human subject.--The term ``human subject'' means an
            individual who is or becomes a participant in research, either
            as a recipient of the test article or as a control. A subject
            may be either a healthy individual or a patient.
                (6) Institution.--The term ``institution'' means any public
            or private entity or agency (including Federal, State, and
            other agencies), either in the United States or other country.
                (7) Institutional review board; irb.--The terms
            ``institutional review board'' and ``IRB'' mean any board,
            committee, or other group formally designated by an institution
            to review, to approve the initiation of, and to conduct
            periodic review of, biomedical research involving human
            subjects. The primary purpose of such review is to assure the
            protection of the rights and welfare of the human subjects.
                (8) irb approval.--The term ``IRB approval'' means the
            determination of an IRB made pursuant to part 56 of title 21,
            Code of Federal Regulations, or successor regulations, that a
            clinical investigation has been reviewed and may be conducted
            at an institution within the constraints set forth by the IRB
            and by other institutional and Federal requirements.
                (9) Test article.--The term ``test article'' means any drug
            for human use, biological product for human use, medical device
            for human use, human food additive, color additive, electronic
            product, or any other article that would be subject to
            regulation under the Federal Food, Drug, and Cosmetic Act if
            introduced into interstate commerce.

    SEC. 313. PROMOTION OF SAFE ENVIRONMENTS.

        (a) In General.--In order to carry out the policy set forth in
    paragraph (5) of section 301(b), the President may prohibit the
    exportation of pesticides or chemicals that the President deems to be a
    risk to the public health, safety, or environment of the United States
    or any other country.
        (b) Report on Exports.--
                (1) Report.--The President shall, by not later than 6
            months after the date of enactment of this Act--
                        (A) identify all United States persons who export
                    any hazardous pesticide or chemical that is--
                                (i) included in the Convention on the Prior
                            Informed Consent Procedure for Certain
                            Hazardous Chemicals and Pesticides in
                            International Trade, or the Convention on
                            Persistent Organic Pollutants; or
                                (ii) either banned, severely restricted,
                            highly regulated, or never regulated for use in
                            the United States;
                        (B) determine the quantities of each hazardous
                    pesticide and chemical described in subparagraph (A)
                    that each United States person has exported in the 2-
                    year period preceding the date of enactment of this
                    Act; and
                        (C) submit to the Committee on International
                    Relations of the House of Representatives and to the
                    Committee on Banking, Housing, and Urban Affairs and
                    the Committee on Foreign Relations of the Senate a
                    comprehensive report on the information described in
                    subparagraphs (A) and (B).
                (2) Regulatory and administrative frameworks.--The
            President shall include in the report under paragraph (1) a
            detailed description, done in consultation with appropriate
            departments and agencies, of the regulatory and administrative
            frameworks in the United States for measuring, monitoring, and
            controlling the export of the pesticides and chemicals
            described in paragraph (1), and any recommendations the
            President has on how such frameworks could be improved as
            methods for controlling the export of those substances.
        (c) GAO Report.--The Comptroller General of the United States, in
    consultation with the National Academy of Sciences and such other
    departments and agencies as the Comptroller General considers
    appropriate, shall, by not later than 1 year after the date of the
    enactment of this Act--
                (1) examine the regulatory and administrative frameworks in
            the United States for measuring, monitoring, and controlling
            the exportation of the pesticides and chemicals described in
            subsection (b), and determine the efficiency and effectiveness
            of those frameworks;
                (2) compare the United States regulatory and administrative
            frameworks under paragraph (1) with those of the other member
            countries of the Organization for Economic Cooperation and
            Development, and provide recommendations concerning any
            elements of the frameworks of those countries that might be
            applied to the United States frameworks to help improve their
            efficiency and effectiveness;
                (3) compare the quantities of each of the substances
            described in paragraph (1) which have been exported by the
            United States and all other member countries of the
            Organization for Economic Cooperation and Development during
            the 2-year period preceding the date of enactment of this Act;
                (4) evaluate the adequacy of current statutory and
            regulatory authority, as well as appropriations, for measuring,
            monitoring, and controlling the export of those substances and
            suggest improvements for ensuring better measuring, monitoring,
            and control of those exports; and
                (5) submit to the Committee on International Relations of
            the House of Representatives and to the Committee on Banking,
            Housing, and Urban Affairs and the Committee on Foreign
            Relations of the Senate a report on the findings under
            paragraphs (1) through (4).

       TITLE IV--PROCEDURES FOR EXPORT LICENSES AND INTERAGENCY DISPUTE
                                   RESOLUTION

    SEC. 401. EXPORT LICENSE PROCEDURES.

        (a) Responsibility of the Secretary.--
                (1) In general.--All applications for a license or other
            authorization to export a controlled item shall be filed in
            such manner and include such information as the Secretary may,
            by regulation, prescribe.
                (2) 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.
                (3) Calculation of processing times.--In calculating the
            processing times set forth in this title, 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.
                (4) Criteria for evaluating applications.--In determining
            whether to grant an application to export a controlled item
            under this Act, the following criteria shall be considered:
                        (A) The characteristics of the controlled item.
                        (B) The threat to--
                                (i) the national security interests of the
                            United States from items controlled under title
                            II of this Act; or
                                (ii) the foreign policy of the United
                            States from items controlled under title III of
                            this Act.
                        (C) The country tier designation of the country to
                    which a controlled item is to be exported pursuant to
                    section 203.
                        (D) The risk of export diversion or misuse by--
                                (i) the exporter;
                                (ii) the method of export;
                                (iii) the end user;
                                (iv) the country where the end user is
                            located; and
                                (v) the end use.
                        (E) Risk mitigating factors including, but not
                    limited to--
                                (i) changing the characteristics of the
                            controlled item;
                                (ii) after-market monitoring by the
                            exporter; and
                                (iii) post-shipment verification.
        (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 information regarding the receipt
            and status of the application.
                (2) Initial procedures.--
                        (A) In general.--Not later than 9 days after
                    receiving any license application, the Secretary
                    shall--
                                (i) 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 title; and
                                (ii) upon receipt of a completed
                            application--
                                        (I) ensure that the classification
                                    state on the application for the export
                                    items is correct, and, if so, refer the
                                    application, through the use of a
                                    common data base or other means, and
                                    all information submitted by the
                                    applicant, and all necessary
                                    recommendations and analyses by the
                                    Secretary, to the Secretary of Defense,
                                    the Secretary of State, and the heads
                                    of and other departments and agencies
                                    the Secretary considers appropriate; or
                                        (II) return the application if a
                                    license is not required.
                        (B) Referral not required.--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.
                (3) Withdrawal of application.--An applicant may, by
            written notice to the Secretary, withdraw an application at any
            time before final action.
        (c) Action by Other Departments and Agencies.--
                (1) Referral to other agencies.--The Secretary shall
            promptly refer a license application to the departments and
            agencies under subsection (b) to make recommendations and
            provide information to the Secretary.
                (2) Responsibility of referral departments and agencies.--
            The Secretary of Defense, the Secretary of State, and the heads
            of other reviewing departments and agencies shall take all
            necessary actions on an application in a prompt and responsible
            manner. Each department or agency reviewing an application
            under this section shall establish and maintain records
            properly identifying and monitoring the status of the matter
            referred to the department or agency.
                (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 title.
                (4) Time period for action by referral departments and
            agencies.--Within 30 days after the Secretary refers an
            application under this section, each department or agency to
            which an application has been referred 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
            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) Action by the Secretary.--Not later than 30 days after the date
    the application is referred, the Secretary shall--
                (1) if there is agreement among the departments and
            agencies to which the application has been referredunder
            subsection (c) to issue or deny the license--
                        (A) issue the license and ensure all appropriate
                    personnel in the Department (including the Office of
                    Export Enforcement) are notified of all approved
                    license applications; or
                        (B) notify the applicant of the intention to deny
                    the license; or
                (2) if there is no agreement among such departments and
            agencies, notify the applicant that the application is subject
            to the interagency dispute resolution process provided for in
            section 402.
        (e) Consequences of Application Denial.--
                (1) In general.--If a determination is made to deny a
            license, the Secretary shall inform the applicant in writing,
            consistent with the protection of intelligence information
            sources and methods, of--
                        (A) the determination;
                        (B) the specific statutory and regulatory bases for
                    the proposed denial;
                        (C) what, if any, modifications to, or restrictions
                    on, the items for which the license was sought would
                    allow such export to be compatible with export controls
                    imposed under this Act, and which officer or employee
                    of the Department 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;
                        (D) to the extent consistent with the national
                    security and foreign policy interests of the United
                    States, the specific considerations that led to the
                    determination to deny the application; and
                        (E) the availability of appeal procedures.
                (2) Period for applicant to respond.--The applicant shall
            have 20 days from the date of the notice of intent to deny the
            application to respond in a manner that addresses and corrects
            the reasons for the denial. If the applicant does not
            adequately address or correct the reasons for denial or does
            not respond, the license shall be denied. If the applicant does
            address or correct the reasons for denial, the application
            shall be considered in a timely manner.
        (f) Appeals and Other Actions by Applicant.--
                (1) In general.--The Secretary shall establish appropriate
            procedures for an applicant to appeal to the Secretary the
            denial of an application or other administrative action under
            this Act. In any case in which the Secretary proposes to
            reverse the decision with respect to the application, the
            appeal under this subsection shall be handled in accordance
            with the interagency dispute resolution process provided for in
            section 402(b)(3).
                (2) Enforcement of time limits.--
                        (A) In general.--In any case in which an action
                    prescribed in this section is not taken on an
                    application within the time period established by this
                    section (except in the case of a time period extended
                    under subsection (g) 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.
                        (B) Bringing court action.--If, within 20 days
                    after a petition is filed under subparagraph (A), the
                    processing of the application has not been brought into
                    conformity with the requirements of this section, or
                    the processing of 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.
        (g) 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; complexity of analysis;
            national security impact.--
                        (A) Agreement of the applicant.--Delays upon which
                    the Secretary and the applicant mutually agree.
                        (B) Complexity of analysis.--A reviewing department
                    or agency requires more time due to the complexity of
                    the analysis, if the additional time is not more than
                    60 days.
                        (C) National security impact.--A reviewing
                    department or agency requires additional time because
                    of the potential impact on the national security or
                    foreign policy interests of the United States, if the
                    additional time is not more than 60 days.
                (2) Prelicense checks.--A prelicense check (for a period
            not to exceed 60 days) that may be required to establish the
            identity and reliability of the recipient of items controlled
            under this Act, if--
                        (A) the need for the prelicense check is determined
                    by the Secretary or by another department or agency in
                    any case in which the request for the prelicense check
                    is made by such department or agency;
                        (B) the request for the prelicense check is
                    initiated 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.
                (4) Exception.--Whenever a prelicense check described in
            paragraph (2) or assurances described in paragraph (3) 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.
                (5) Multilateral review.--Multilateral review of a license
            application to the extent that such multilateral review is
            required by a relevant multilateral regime.
                (6) Congressional notification.--Such time as is required
            for mandatory congressional notifications under this Act.
                (7) Consultations.--Consultation with foreign governments,
            if such consultation is provided for by a relevant multilateral
            regime as a precondition for approving a license.
                (8) Intelligence agencies.--Delays necessary to obtain
            information or assessments from intelligence agencies.
        (h) Classification Requests and Other Inquiries.--
                (1) Classification request.--
                        (A) Notification of other agencies.--In any case in
                    which the Secretary receives a written request asking
                    for the proper classification of an item on the Control
                    List or the applicability of licensing requirements
                    under this title, the Secretary shall promptly notify
                    the Secretary of Defense, the Secretary of State, and
                    the head of any other department or agency of the
                    United States that the Secretary considers appropriate,
                    of the request.
                        (B) Determination; resolution of disputes.--The
                    Secretary shall make the determination regarding proper
                    classification within 14 days after receiving the
                    request and inform the person making the request of
                    such determination. If an objection is raised by the
                    Secretary of State or the Secretary of Defense
                    regarding the Secretary's determination within that
                    time period, the disagreement shall be resolved through
                    the interagency resolution process described in section
                    402, except that any such disagreement shall be
                    resolved within 60 days.
                (2) Other inquiries.--In any case in which the Secretary
            receives a written request for information under this Act, the
            Secretary shall, within 30 days after receiving the request,
            reply with that information to the person making the request.

    SEC. 402. INTERAGENCY DISPUTE RESOLUTION PROCESS.

        (a) In General.--All license applications on which agreement cannot
    be reached shall be referred to the interagency dispute resolution
    process for decision.
        (b) Interagency Dispute Resolution Process.--
                (1) Initial resolution.--The Secretary shall establish,
            select the chairperson of, and determine procedures for an
            interagency committee to review initially all license
            applications described in subsection (a) with respect to which
            the Secretary and any of the referral departments and agencies
            are not in agreement. The chairperson shall consider the
            positions of all the referral departments and agencies (which
            shall be included in the minutes described in subsection
            (c)(2)) and make a decision on the license application,
            including appropriate revisions or conditions thereto.
                (2) Intelligence community.--The analytic product of the
            intelligence community should be fully considered with respect
            to any proposed license under this title.
                (3) Further resolution.--The President shall establish
            additional levels for review or appeal of any matter that
            cannot be resolved pursuant to the process described in
            paragraph (1). Each such review shall ensure that matters are
            resolved or referred to the President not later than 90 days
            after the completed license application is referred by the
            Secretary.
        (c) Final Action.--
                (1) In general.--Once a final decision is made under
            subsection (b), the Secretary shall promptly--
                        (A) issue the license and ensure that all
                    appropriate personnel in the Department (including the
                    Office of Export Enforcement) are notified of all
                    approved license applications; or
                        (B) notify the applicant of the intention to deny
                    the application.
                (2) Minutes.--The interagency committee and each level of
            the interagency dispute resolution process shall keep
            reasonably detailed minutes of all meetings. On each matter
            before the interagency committee or before any other level of
            the interagency dispute resolution process in which members
            disagree, each member shall clearly state the reasons for the
            member's position and the reasons shall be entered in the
            minutes.

     TITLE V--INTERNATIONAL ARRANGEMENTS; FOREIGN BOYCOTTS; SANCTIONS; AND
                                  ENFORCEMENT

    SEC. 501. INTERNATIONAL ARRANGEMENTS.

        (a) Multilateral Export Control Regimes.--
                (1) Policy.--It is the policy of the United States to seek
            multilateral arrangements that support the national security
            objectives of the United States (as described in title II) and
            that establish fairer and more predictable competitive
            opportunities for United States exporters.
                (2) Participation in existing regimes.--Congress encourages
            the United States to continue its active participation in and
            to strengthen existing multilateral export control regimes.
                (3) Participation in new regimes.--It is the policy of the
            United States to participate in additional multilateral export
            control regimes if such participation would serve the national
            security interests of the United States.
        (b) Annual Report on Multilateral Export Control Regimes.--Not
    later than February 1 of each year, the President shall submit to the
    Committee on Banking, Housing, and Urban Affairs of the Senate and the
    Committee on International Relations of the House of Representatives a
    report evaluating the effectiveness of each multilateral export control
    regime, including an assessment of the steps undertaken pursuant to
    subsections (c) and (d). The report, or any part of this report, may be
    submitted in classified form to the extent the President considers
    necessary.
        (c) Standards for Multilateral Export Control Regimes.--The
    President shall take steps to establish the following features in any
    multilateral export control regime in which the United States is
    participating or may participate:
                (1) Full membership.--All supplier countries are members of
            the regime, and the policies and activities of the members are
            consistent with the objectives and membership criteria of the
            multilateral export control regime.
                (2) Effective enforcement and compliance.--The regime
            promotes enforcement and compliance with the regime's rules and
            guidelines.
                (3) Public understanding.--The regime makes an effort to
            enhance public understanding of the purpose and procedures of
            the multilateral export control regime.
                (4) Effective implementation procedures.--The multilateral
            export control regime has procedures for the uniform and
            consistent interpretation and implementation of its rules and
            guidelines.
                (5) Enhanced cooperation with regime nonmembers.--There is
            agreement among the members of the multilateral export control
            regime to--
                        (A) cooperate with governments outside the regime
                    to restrict the export of items controlled by such
                    regime; and
                        (B) establish an ongoing mechanism in the regime to
                    coordinate planning and implementation of export
                    control measures related to such cooperation.
                (6) Periodic high-level meetings.--There are regular
            periodic meetings of high-level representatives of the
            governments of members of the multilateral export control
            regime for the purpose of coordinating export control policies
            and issuing policy guidance to members of the regime.
                (7) Common list of controlled items.--There is agreement on
            a common list of items controlled by the multilateral export
            control regime.
                (8) Regular updates of common list.--There is a procedure
            for removing items from the list of controlled items when the
            control of such items no longer serves the objectives of the
            members of the multilateral export control regime.
                (9) Treatment of certain countries.--There is agreement to
            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.
                (10) Harmonization of license approval procedures.--There
            is harmonization among the members of the regime of their
            national export license approval procedures, practices, and
            standards.
                (11) Undercutting.--There is a limit with respect to when
            members of a multilateral export control regime--
                        (A) grant export licenses for any item that is
                    substantially identical to or directly competitive with
                    an item controlled pursuant to the regime, where the
                    United States has denied an export license for such
                    item, or
                        (B) approve exports to a particular end user to
                    which the United States has denied export license for a
                    similar item.
        (d) Standards for National Export Control Systems.--The President
    shall take steps to attain the cooperation of members of each regime in
    implementing effective national export control systems containing the
    following features:
                (1) Export control law.--Enforcement authority, civil and
            criminal penalties, and statutes of limitations are sufficient
            to deter potential violations and punish violators under the
            member's export control law.
                (2) License approval process.--The system for evaluating
            export license applications includes sufficient technical
            expertise to assess the licensing status of exports and ensure
            the reliability of end users.
                (3) Enforcement.--The enforcement mechanism provides
            authority for trained enforcement officers to investigate and
            prevent illegal exports.
                (4) Documentation.--There is a system of export control
            documentation and verification with respect to controlled
            items.
                (5) Information.--There are procedures for the coordination
            and exchange of information concerning licensing, end users,
            and enforcement with other members of the multilateral export
            control regime.
                (6) Resources.--The member has devoted adequate resources
            to administer effectively the authorities, systems, mechanisms,
            and procedures described in paragraphs (1) through (5).
        (e) Objectives Regarding Multilateral Export Control Regimes.--The
    President shall seek to achieve the following objectives with regard to
    multilateral export control regimes:
                (1) Strengthen existing regimes.--Strengthen existing
            multilateral export control regimes--
                        (A) by creating a requirement to share information
                    about export license applications among members before
                    a member approves an export license; and
                        (B) harmonizing national export license approval
                    procedures and practices, including the elimination of
                    undercutting.
                (2) Review and update.--Review and update multilateral
            regime export control lists with other members, taking into
            account--
                        (A) national security concerns;
                        (B) the controllability of items; and
                        (C) the costs and benefits of controls.
                (3) Encourage compliance by nonmembers.--Encourage
            nonmembers of the multilateral export control regime--
                        (A) to strengthen their national export control
                    regimes and improve enforcement;
                        (B) to adhere to the appropriate multilateral
                    export control regime; and
                        (C) not to undermine an existing multilateral
                    export control regime by exporting controlled items in
                    a manner inconsistent with the guidelines of the
                    regime.
        (f) Transparency of Multilateral Export Control Regimes.--
                (1) Publication of information on each existing regime.--
            Not later than 120 days after the date of enactment of this
            Act, the Secretary shall, for each multilateral export control
            regime, to the extent that it is not inconsistent with the
            arrangements of that regime (in the judgment of the Secretary
            of State) or with the national interest, publish in the Federal
            Register and post on the Department of Commerce website the
            following information with respect to the regime:
                        (A) The purposes of the regime.
                        (B) The members of the regime.
                        (C) The export licensing policy of the regime.
                        (D) The items that are subject to export 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 export controls of the regime.
                        (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.--Not later than 60 days after the United
            States joins or organizes a new multilateral export control
            regime, the Secretary shall, to the extent that it is not
            inconsistent with arrangements under the regime (in the
            judgment of the Secretary of State) or with the national
            interest, publish in the Federal Register and post on the
            Department of Commerce website the information described in
            subparagraphs (A) through (H) of paragraph (1) with respect to
            the regime.
                (3) Publication of changes.--Not later than 60 days after a
            multilateral export control regime adopts any change in the
            information published under this subsection, the Secretary
            shall, to the extent not inconsistent with the arrangements
            under the regime or the national interest, publish such changes
            in the Federal Register and post such changes on the Department
            of Commerce website.
        (g) Support of Other Countries' Export Control Systems.--The
    Secretary is encouraged to continue to--
                (1) participate in training of, and provide training to,
            officials of other countries on the principles and procedures
            for implementing effective export controls; and
                (2) participate in any such training provided by other
            departments and agencies of the United States.

    SEC. 502. FOREIGN BOYCOTTS.

        (a) Purposes.--The purposes of this section are as follows:
                (1) 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.
                (2) To encourage and, in specified cases, require United
            States persons engaged in the export of items 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.
        (b) Prohibitions and Exceptions.--
                (1) Prohibitions.--In order to carry out the purposes set
            forth in subsection (a), the President shall issue regulations
            prohibiting any United States person, with respect to that
            person's activities in the interstate or foreign commerce of
            the United States, from taking or knowingly agreeing to take
            any of the following actions with intent to comply with,
            further, or support any boycott fostered or imposed by a
            foreign country against a country that is friendly to the
            United States and is not itself the object of any form of
            boycott pursuant to United States law or regulation:
                        (A) Refusing, or requiring any other person to
                    refuse, to do business with or in the boycotted
                    country, with any business concern organized under the
                    laws of the boycotted country, with any national or
                    resident of the boycotted country, or with any other
                    person, pursuant to an agreement with, or requirement
                    of, or a request from or on behalf of the boycotting
                    country (subject to the condition that the intent
                    required to be associated with such an act in order to
                    constitute a violation of the prohibition is not
                    indicated solely by the mere absence of a business
                    relationship with or in the boycotted country, with any
                    business concern organized under the laws of the
                    boycotted country, with any national or resident of the
                    boycotted country, or with any other person).
                        (B) Refusing, or requiring any other person to
                    refuse, to employ or otherwise discriminate against any
                    United States person on the basis of the race,
                    religion, sex, or national origin of that person or of
                    any owner, officer, director, or employee of such
                    person.
                        (C) Furnishing information with respect to the
                    race, religion, sex, or national origin of any United
                    States person or of any owner, officer, director, or
                    employee of such person.
                        (D) Furnishing information (other than furnishing
                    normal business information in a commercial context, as
                    defined by the Secretary) about whether any person has,
                    has had, or proposes to have any business relationship
                    (including a relationship by way of sale, purchase,
                    legal or commercial representation, shipping or other
                    transport, insurance, investment, or supply) with or in
                    the boycotted country, with any business concern
                    organized under the laws of the boycotted country, with
                    any national or resident of the boycotted country, or
                    with any other person that is known or believed to be
                    restricted from having any business relationship with
                    or in the boycotting country.
                        (E) Furnishing information about whether any person
                    is a member of, has made a contribution to, or is
                    otherwise associated with or involved in the activities
                    of any charitable or fraternal organization which
                    supports the boycotted country.
                        (F) Paying, honoring, confirming, or otherwise
                    implementing a letter of credit which contains any
                    condition or requirement the compliance with which is
                    prohibited by regulations issued pursuant to this
                    paragraph, and no United States person shall, as a
                    result of the application of this paragraph, be
                    obligated to pay or otherwise honor or implement such
                    letter of credit.
                (2) Exceptions.--Regulations issued pursuant to paragraph
            (1) shall provide exceptions for--
                        (A) compliance, or agreement to comply, with
                    requirements--
                                (i) prohibiting the import of items from
                            the boycotted country or items produced or
                            provided, by any business concern organized
                            under the laws of the boycotted country or by
                            nationals or residents of the boycotted
                            country; or
                                (ii) prohibiting the shipment of items to
                            the boycotting country on a carrier of the
                            boycotted country or by a route other than that
                            prescribed by the boycotting country or the
                            recipient of the shipment;
                        (B) compliance, or agreement to comply, with import
                    and shipping document requirements with respect to the
                    country of origin, the name of the carrier and route of
                    shipment, the name of the supplier of the shipment, or
                    the name of the provider of other services, except
                    that, for purposes of applying any exception under this
                    subparagraph, no information knowingly furnished or
                    conveyed in response to such requirements may be stated
                    in negative, blacklisting, or similar exclusionary
                    terms, other than with respect to carriers or route of
                    shipment as may be permitted by such regulations in
                    order to comply with precautionary requirements
                    protecting against war risks and confiscation;
                        (C) compliance, or agreement to comply, in the
                    normal course of business with the unilateral and
                    specific selection by a boycotting country, or a
                    national or resident thereof, or carriers, insurers,
                    suppliers of services to be performed within the
                    boycotting country, or specific items which, in the
                    normal course of business, are identifiable by source
                    when imported into the boycotting country;
                        (D) compliance, or agreement to comply, with export
                    requirements of the boycotting country relating to
                    shipment or transshipment of exports to the boycotted
                    country, to any business concern of or organized under
                    the laws of the boycotted country, or to any national
                    or resident of the boycotted country;
                        (E) compliance by an individual, or agreement by an
                    individual to comply, with the immigration or passport
                    requirements of any country with respect to such
                    individual or any member of such individual's family or
                    with requests for information regarding requirements of
                    employment of such individual within the boycotting
                    country; and
                        (F) compliance by a United States person resident
                    in a foreign country, or agreement by such a person to
                    comply, with the laws of the country with respect to
                    the person's activities exclusively therein, and such
                    regulations may contain exceptions for such resident
                    complying with the laws or regulations of the foreign
                    country governing imports into such country of
                    trademarked, trade-named, or similarly specifically
                    identifiable products, or components of products for
                    such person's own use, including the performance of
                    contractual services within that country.
                (3) Limitation on exceptions.--Regulations issued pursuant
            to paragraphs (2)(C) and (2)(F) shall not provide exceptions
            from paragraphs (1)(B) and (1)(C).
                (4) Antitrust and civil rights laws not affected.--Nothing
            in this subsection may be construed to supersede or limit the
            operation of the antitrust or civil rights laws of the United
            States.
                (5) Evasion.--This section applies to any transaction or
            activity undertaken by or through a United States person or any
            other person with intent to evade the provisions of this
            section or the regulations issued pursuant to this subsection.
            The regulations issued pursuant to this section shall expressly
            provide that the exceptions set forth in paragraph (2) do not
            permit activities or agreements (expressed or implied by a
            course of conduct, including a pattern of responses) that are
            otherwise prohibited, pursuant to the intent of such
            exceptions.
        (c) Additional Regulations and Reports.--
                (1) Regulations.--In addition to the regulations issued
            pursuant to subsection (b), regulations issued pursuant to
            title III shall implement the purposes set forth in subsection
            (a).
                (2) Reports by united states persons.--The regulations
            shall require that any United States person receiving a request
            to furnish information, enter into or implement an agreement,
            or take any other action referred to in subsection (a) shall
            report that request to the Secretary, together with any other
            information concerning the request that the Secretary
            determines appropriate. The person shall also submit to the
            Secretary a statement regarding whether the person intends to
            comply, and whether the person has complied, with the 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 item to which such report relates may be treated as
            confidential if the Secretary determines that disclosure of
            that information would place the United States person involved
            at a competitive disadvantage. The Secretary shall periodically
            transmit summaries of the information contained in the reports
            to the Secretary of State for such action as the Secretary of
            State, in consultation with the Secretary, considers
            appropriate to carry out the purposes set forth in subsection
            (a).
        (d) Preemption.--The provisions of this section and the regulations
    issued under this section shall preempt any law, rule, or regulation
    that--
                (1) is a law, rule, or regulation of any of the several
            States or the District of Columbia, or any of the territories
            or possessions of the United States, or of any governmental
            subdivision thereof; and
                (2) pertains to participation in, compliance with,
            implementation of, or the furnishing of information regarding
            restrictive trade practices or boycotts fostered or imposed by
            foreign countries against other countries.

    SEC. 503. PENALTIES.

        (a) Criminal Penalties.--
                (1) Violations by an individual.--Any individual who
            willfully violates, conspires to violate, or attempts to
            violate any provision of this Act or any regulation, license,
            or order issued under this Act shall be fined up to 10 times
            the value of the exports involved or $1,000,000, whichever is
            greater, imprisoned for not more than 10 years, or both, for
            each violation.
                (2) Violations by a person other than an individual.--Any
            person other than an individual who willfully violates,
            conspires to violate, or attempts to violate any provision of
            this Act or any regulation, license, or order issued under this
            Act shall be fined up to 10 times the value of the exports
            involved or $5,000,000, whichever is greater, for each
            violation.
        (b) Forfeiture of Property Interest and Proceeds.--
                (1) Forfeiture.--Any person who is convicted under
            paragraph (1) or (2) of subsection (a) shall, in addition to
            any other penalty, forfeit to the United States--
                        (A) any of that person's security or other interest
                    in, claim against, or property or contractual rights of
                    any kind in the tangible items that were the subject of
                    the violation;
                        (B) any of that person's security or other interest
                    in, claim against, or property or contractual rights of
                    any kind in the 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 (relating to criminal
            forfeiture), 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 up to $500,000 for each violation of a provision of
            this Act or any regulation, license, or order issued under this
            Act. A civil penalty under this paragraph may be in addition
            to, or in lieu of, any other liability or penalty which may be
            imposed for such a violation.
                (2) Denial of export privileges.--The Secretary may deny
            the export privileges of any person, including the suspension
            or revocation of the authority of such person to export or
            receive United States-origin items subject to this Act, for a
            violation of a provision of this Act or any regulation,
            license, or order issued under this Act.
                (3) Exclusion from practice.--The Secretary may exclude any
            person acting as an attorney, accountant, consultant, freight
            forwarder, or in any other representative capacity from
            participating before the Department with respect to a license
            application or any other matter under this Act.
        (d) Payment of Civil Penalties.--
                (1) Payment as condition of further export privileges.--The
            payment of a civil penalty imposed under subsection (c) may be
            made a condition for 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. The period for which the payment of a penalty may
            be made such a condition may not exceed 1 year after the date
            on which the payment is due.
                (2) Deferral or suspension.--
                        (A) In general.--The payment of a civil penalty
                    imposed under subsection (c) may be deferred or
                    suspended in whole or in part for a period no longer
                    than any probation period (which may exceed 1 year)
                    that may be imposed upon the person on whom the penalty
                    is imposed.
                        (B) No bar to collection of penalty.--A deferral or
                    suspension under subparagraph (A) shall not operate as
                    a bar to the collection of the penalty concerned in the
                    event that the conditions of the suspension, deferral,
                    or probation are not fulfilled.
                (3) Treatment of payments.--Any amount paid in satisfaction
            of a civil penalty imposed under subsection (c) shall be
            covered into the Treasury as miscellaneous receipts.
        (e) Refunds.--
                (1) Authority.--
                        (A) In general.--The Secretary may, in the
                    Secretary's discretion, refund any civil penalty
                    imposed under subsection (c) on the ground of a
                    material error of fact or law in imposition of the
                    penalty.
                        (B) Limitation.--A civil penalty may not be
                    refunded under subparagraph (A) later than 2 years
                    after payment of the penalty.
                (2) Prohibition on actions for refund.--Notwithstanding
            section 1346(a) of title 28, United States Code, no action for
            the refund of any civil penalty referred to in paragraph (1)
            may be maintained in any court.
        (f) Effect of Other Convictions.--
                (1) Denial of export privileges.--Any person convicted of a
            violation of--
                        (A) a provision of this Act or the Export
                    Administration Act of 1979,
                        (B) a provision of the International Emergency
                    Economic Powers Act (50 U.S.C. 1701 et seq.),
                        (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 (22
                    U.S.C. 2778),
                        (F) section 16 of the Trading with the Enemy Act
                    (50 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),
                        (H) section 371 or 1001 of title 18, United States
                    Code, if in connection with the export of controlled
                    items under this Act or any regulation, license, or
                    order issued under the International Emergency Economic
                    Powers Act, or the export of items controlled under the
                    Arms Export Control Act,
                        (I) section 175 of title 18, United States Code,
                        (J) a provision of the Atomic Energy Act (42 U.S.C.
                    201 et seq.),
                        (K) section 831 of title 18, United States Code, or
                        (L) section 2332a of title 18, United States Code,
            may, at the discretion of the Secretary, be denied export
            privileges under this Act for a period not to exceed 10 years
            from the date of the conviction. The Secretary may also revoke
            any export license under this Act 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 a person convicted of any violation of a law
            set forth in paragraph (1) upon a showing of such relationship
            with the convicted person. The Secretary shall make such
            showing only after providing notice and opportunity for a
            hearing.
        (g) Statute of Limitations.--
                (1) In general.--Except as provided in paragraph (2), a
            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 later of the date of the alleged violation or the date of
            discovery of the alleged violation.
                (2) Exception.--
                        (A) Tolling.--In any case in which a criminal
                    indictment alleging a violation under subsection (a) is
                    returned within the time limits prescribed by law for
                    the institution of such action, the limitation under
                    paragraph (1) for bringing a proceeding to impose a
                    civil penalty or other administrative sanction under
                    this section shall, upon the return of the criminal
                    indictment, be tolled against all persons named as a
                    defendant.
                        (B) Duration.--The tolling of the limitation with
                    respect to a defendant under subparagraph (A) as a
                    result of a criminal indictment shall continue for a
                    period of 6 months from the date on which the
                    conviction of the defendant becomes final, the
                    indictment against the defendant is dismissed, or the
                    criminal action has concluded.
        (h) Violations Defined by Regulation.--Nothing in this section
    shall limit the authority of the Secretary to define by regulation
    violations under this Act.
        (i) Construction.--Nothing in subsection (c), (d), (e), (f), or (g)
    limits--
                (1) the availability of other administrative or judicial
            remedies with respect to a violation of a provision 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 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)).

    SEC. 504. MISSILE PROLIFERATION CONTROL VIOLATIONS.

        (a) Violations by United States Persons.--
                (1) Sanctions.--
                        (A) In general.--If the President determines that a
                    United States person knowingly--
                                (i) exports, transfers, or otherwise
                            engages in the trade of any item on the MTCR
                            Annex, in violation of the provisions of
                            section 38 (22 U.S.C. 2778) or chapter 7 of the
                            Arms Export Control Act, title II or III 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) Sanctions described.--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 503.
                (3) Waiver.--The President may waive the imposition of
            sanctions under paragraph (1) on a person with respect to an
            item if the President certifies to Congress that--
                        (A) the item is essential to the national security
                    of the United States; and
                        (B) such person is a sole source supplier of the
                    item, the item is not available from any alternative
                    reliable supplier, and the need for the item 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) In general.--Subject to paragraphs (3) through
                    (7), if the President determines that a foreign person,
                    after the date of 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) Sanctions described.--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) Waiver.--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) Report to congress.--In the event that the
                    President decides to apply the waiver described in
                    subparagraph (A), the President shall so notify
                    Congress not less than 20 working days before issuing
                    the waiver. Such notification shall include a report
                    fully articulating the rationale and circumstances
                    which led the President to apply the waiver.
                (6) Additional waiver.--The President may waive the
            imposition of sanctions under paragraph (1) on a person with
            respect to a product or service if the President certifies to
            the Congress that--
                        (A) the product or service is essential to the
                    national security of the United States; and
                        (B) such person is a sole source supplier of the
                    product or service, the product or service is not
                    available from any alternative reliable supplier, and
                    the need for the product or service cannot be met in a
                    timely manner by improved manufacturing processes or
                    technological developments.
                (7) Exceptions.--The President shall not apply the sanction
            under this subsection prohibiting the importation of the
            products of a foreign person--
                        (A) in the case of procurement of defense articles
                    or defense services--
                                (i) under existing contracts or
                            subcontracts, including the exercise of options
                            for production quantities to satisfy
                            requirements essential to the national security
                            of the United States;
                                (ii) if the President determines that the
                            person to which the sanctions would be applied
                            is a sole source supplier of the defense
                            articles and services, that the defense
                            articles or services are essential to the
                            national security of the United States, and
                            that alternative sources are not readily or
                            reasonably available; or
                                (iii) if the President determines that such
                            articles or services are essential to the
                            national security of the United States under
                            defense coproduction agreements or NATO
                            Programs of Cooperation;
                        (B) to products or services provided under
                    contracts entered into before the date on which the
                    President publishes his intention to impose the
                    sanctions; or
                        (C) to--
                                (i) spare parts,
                                (ii) component parts, but not finished
                            products, essential to United States products
                            or production,
                                (iii) routine services and maintenance of
                            products, to the extent that alternative
                            sources are not readily or reasonably
                            available, or
                                (iv) information and technology essential
                            to United States products or production.
        (c) Definitions.--In this section:
                (1) Missile.--The term ``missile'' means a category I
            system as defined in the MTCR Annex, and any other unmanned
            delivery system of similar capability, as well as the specially
            designed production facilities for these systems.
                (2) Missile technology control regime; mtcr.--The term
            ``Missile Technology Control Regime'' or ``MTCR'' means the
            policy statement, between the United States, the United
            Kingdom, the Federal Republic of Germany, France, Italy,
            Canada, and Japan, announced on April 16, 1987, to restrict
            sensitive missile-relevant transfers based on the MTCR Annex,
            and any amendments thereto.
                (3) MTCR adherent.--The term ``MTCR adherent'' means a
            country that participates in the MTCR or that, pursuant to an
            international understanding to which the United States is a
            party, controls MTCR equipment or technology in accordance with
            the criteria and standards set forth in the MTCR.
                (4) MTCR annex.--The term ``MTCR Annex'' means the
            Guidelines and Equipment and Technology Annex of the MTCR, and
            any amendments thereto.
                (5) Missile equipment or technology; mtcr equipment or
            technology.--The terms ``missile equipment or technology'' and
            ``MTCR equipment or technology'' mean those items listed in
            category I or category II of the MTCR Annex.
                (6) Foreign person.--The term ``foreign person'' means any
            person other than a United States person.
                (7) Person.--
                        (A) In general.--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.
                        (B) Identification in certain cases.--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.
                (8) Otherwise engaged in the trade of.--The term
            ``otherwise engaged in the trade of'' means, with respect to a
            particular export or transfer, to be a freight forwarder or
            designated exporting agent, or a consignee or end user of the
            item to be exported or transferred.

    SEC. 505. CHEMICAL AND BIOLOGICAL WEAPONS PROLIFERATION SANCTIONS.

        (a) Imposition of Sanctions.--
                (1) Determination by the president.--Except as provided in
            subsection (b)(2), the President shall impose both of the
            sanctions described in subsection (c) if the President
            determines that a foreign person, on or after the date of
            enactment of this section, has knowingly and materially
            contributed--
                        (A) through the export from the United States of
                    any item that is subject to the jurisdiction of the
                    United States under this Act, or
                        (B) through the export from any other country of
                    any item that would be, if it were a United States
                    item, 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 the date of enactment
                    of this Act--
                                (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 310 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, 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 the consultations, the
            President shall impose sanctions unless the President
            determines and certifies to Congress 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
            Congress that government is in the process of taking the
            actions described in the preceding sentence.
                (3) Report to congress.--The President shall report to
            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 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.

    SEC. 506. 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 departments and agencies that the Secretary considers
            appropriate, shall be responsible for providing policy guidance
            on the enforcement of this Act.
                (2) General authorities.--
                        (A) Exercise of authority.--To the extent necessary
                    or appropriate to the enforcement of this Act, officers
                    and employees of the Department designated by the
                    Secretary, officers and employees of the United States
                    Customs Service designated by the Commissioner of
                    Customs, and officers and employees of any other
                    department or agency designated by the head of a
                    department or agency exercising functions under this
                    Act, may exercise the enforcement authority under
                    paragraph (3).
                        (B) Customs service.--In carrying out enforcement
                    authority under 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 ports of entry into or exit from the United States
                    where officers of the United States Customs Service are
                    authorized by law to carry out law enforcement
                    responsibilities. Subject to paragraph (3), the United
                    States Customs Service is authorized, in the
                    enforcement of this Act, to search, detain (after
                    search), and seize items at the ports of entry into or
                    exit from the United States where officers of the
                    United States Customs Service are authorized by law to
                    conduct searches, detentions, and seizures, and at the
                    places outside the United States where the United
                    States Customs Service, pursuant to agreement or other
                    arrangement with other countries, is authorized to
                    perform enforcement activities.
                        (C) Other employees.--In carrying out enforcement
                    authority under paragraph (3), the Secretary and
                    officers and employees of the Department designated by
                    the Secretary may make investigations within the United
                    States, and may conduct, outside the United States,
                    pre-license and post-shipment verifications of
                    controlled items and investigations in the enforcement
                    of section 502. The Secretary and officers and
                    employees of the Department designated by the Secretary
                    are authorized to search, detain (after search), and
                    seize items at places within the United States other
                    than ports referred to in subparagraph (B). The search,
                    detention (after search), or seizure of items at the
                    ports and places referred to in subparagraph (B) may be
                    conducted by officers and employees of the Department
                    only with the concurrence of the Commissioner of
                    Customs or a person designated by the Commissioner.
                        (D) Agreements and arrangements.--The Secretary and
                    the Commissioner of Customs may enter into agreements
                    and arrangements for the enforcement of this Act,
                    including foreign investigations and information
                    exchange.
                (3) Specific authorities.--
                        (A) Actions by any designated personnel.--Any
                    officer or employee designated under paragraph (2), in
                    carrying out the enforcement authority under this Act,
                    may do the following:
                                (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
                            allowance as paid witnesses in the district
                            courts of the United States.
                        (B) Actions by office of export enforcement and
                    customs service personnel.--
                                (i) Office of export enforcement and
                            customs service personnel.--Any officer or
                            employee of the Office of Export Enforcement of
                            the Department of Commerce (in this Act
                            referred to as ``OEE'') 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 Act:
                                        (I) Execute any warrant or other
                                    process issued by a court or officer of
                                    competent jurisdiction with respect to
                                    the enforcement 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, is committing,
                                    or is about to commit such a violation.
                                        (III) Carry firearms.
                                (ii) OEE personnel.--Any officer or
                            employee of the OEE designated by the Secretary
                            under paragraph (2) shall exercise the
                            authority set forth in clause (i) pursuant to
                            guidelines approved by the Attorney General.
                        (C) Other actions by customs service personnel.--
                    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 Act:
                                (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 Act.
                                (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 Act.
                                (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 Act.
                (4) Other authorities not affected.--The authorities
            conferred by this section are in addition to any authorities
            conferred under other laws.
        (b) Forfeiture.--
                (1) In general.--Any tangible items lawfully seized under
            subsection (a) by designated officers or employees shall be
            subject to forfeiture to the United States.
                (2) Applicable laws.--Those provisions of law relating to--
                        (A) the seizure, summary and judicial forfeiture,
                    and condemnation of property for violations of the
                    customs laws;
                        (B) the disposition of such property or the
                    proceeds from the sale thereof;
                        (C) the remission or mitigation of such
                    forfeitures; and
                        (D) 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 Act.
                (3) Forfeitures under customs laws.--Duties that are
            imposed upon a 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 any
            officer or employee of the Department that may be authorized or
            designated for that purpose by the Secretary (or by the
            Commissioner of Customs or any officer or employee of the
            United States Customs Service designated by the Commissioner),
            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 Act
    shall be referred to the Secretary for purposes of determining civil
    penalties and administrative sanctions under section 503 or to the
    Attorney General for criminal action in accordance with this Act 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 OEE that is necessary
            for the detection and prosecution of violations of this Act--
                        (A) funds made available for export enforcement
                    under this Act may be used to purchase property,
                    buildings, and other facilities, and to lease
                    equipment, conveyances, and 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), subsections (a) and (c) of
                    section 304 of the Federal Property and Administrative
                    Services Act of 1949 (41 U.S.C. 254 (a) and (c)), and
                    section 305 of the Federal Property and Administrative
                    Services Act of 1949 (41 U.S.C. 255);
                        (B) funds made available for export enforcement
                    under this Act 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 sections 1341, 3324, and 9102
                    of title 31, United States Code;
                        (C) funds made available for export enforcement
                    under this Act 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 has a net value of more than $250,000 and
            is to be liquidated, sold, or otherwise disposed of, the
            Director of OEE shall report the circumstances to the Secretary
            and the Comptroller General of the United States as much in
            advance of such disposition as the Director of the OEE (or the
            Director's 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. Any property or equipment purchased
            pursuant to paragraph (1) may be retained for subsequent use in
            undercover operations under this section. When such property or
            equipment is no longer needed, it shall be considered surplus
            and disposed of as surplus government property.
                (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 needed for the conduct of such operation, the
            proceeds or the balance of the proceeds remaining at the time
            shall be deposited into the Treasury of the United States as
            miscellaneous receipts.
                (4) Audit and report.--
                        (A) Audit.--The Director of OEE shall conduct a
                    detailed financial audit of each closed OEE undercover
                    investigative operation 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 Congress a report on the
                    results of the audit.
                        (B) Report.--The Secretary shall submit annually to
                    Congress a report, which may be included in the annual
                    report under section 701, 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
                            to the operation.
                (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; and
                        (B) the terms ``undercover investigative
                    operation'' and ``undercover operation'' mean any
                    undercover investigative operation conducted by the
                    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 Congress required by
                            paragraph (4)(B).
        (e) Wiretaps.--
                (1) Authority.--Interceptions of communications in
            accordance with section 2516 of title 18, United States Code,
            are authorized to further the enforcement of this Act.
                (2) Conforming amendment.--Section 2516(1) of title 18,
            United States Code, is amended by adding at the end the
            following:
                ``(q) any violation of, or conspiracy to violate, the
            Export Administration Act of 2001 or the Export Administration
            Act of 1979.''.
        (f) Post-Shipment Verifications.--
                (1) For certain exports and countries.--The Secretary shall
            target post-shipment verifications--
                        (A) to exports involving the greatest risk to
                    national security; and
                        (B) to those countries identified by the Director
                    of Central Intelligence in the most recent report that
                    was submitted to Congress under section 721 of the
                    Intelligence Authorization Act for Fiscal Year 1997 on
                    the acquisition and supply by foreign countries of
                    dual-use items and other technology useful for the
                    development or production of weapons of mass
                    destruction.
                (2) Conduct of verifications.--The Secretary may, with the
            concurrence of the Secretary of State--
                        (A) utilize embassy personnel to conduct post-
                    shipment verifications; and
                        (B) establish guidelines and regulations allowing
                    United States persons to conduct those verifications.
        (g) Refusal To Allow Post-Shipment Verification.--
                (1) In general.--If an end user refuses to allow post-
            shipment verification of a controlled item, the Secretary shall
            deny a license for the export of any controlled item to such
            end user until such post-shipment verification occurs.
                (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 end user refusing to allow post-shipment
            verification of a controlled item.
                (3) Refusal by country.--(A) If a country with which the
            United States has entered into an agreement providing for post-
            shipment verifications repeatedly obstructs or otherwise denies
            the post-shipment verification of controlled items, the
            Secretary shall deny a license for the export of those items or
            any substantially identical or directly competitive items or
            class of items to all end users in that country until such
            post-shipment verification is allowed.
                (B) If the country in which an end user is located refuses
            to allow post-shipment verification of a controlled item,
            whether or not the United States has an agreement with that
            country providing for post-shipment verifications, the
            Secretary may deny a license for the export of that item or any
            substantially identical or directly competitive item or class
            of items to all end users in that country until such post-
            shipment verification is allowed.
        (h) Freight Forwarders Best Practices Program Authorization.--There
    is authorized to be appropriated for the Department of Commerce
    $3,500,000 and such sums as may be necessary to hire 20 additional
    employees to assist United States freight forwarders and other
    interested parties in developing and implementing, on a voluntary
    basis, a ``best practices'' program to ensure that exports of
    controlled items are undertaken in compliance with this Act.
        (i) End Use Verification Authorization.--
                (1) In general.--There is authorized to be appropriated for
            the Department of Commerce $4,500,000 and such sums as may be
            necessary to hire 10 additional overseas investigators to be
            posted in the People's Republic of China, the Russian
            Federation, the Hong Kong Special Administrative Region, the
            Republic of India, Singapore, Egypt, and Taiwan, or any other
            place the Secretary deems appropriate, for the purpose of
            verifying the end use of high-risk, dual-use technology.
                (2) Report.--Not later than 2 years after the date of
            enactment of this Act and annually thereafter, the Department
            shall, in its annual report to Congress on export controls,
            include a report on the effectiveness of the end use
            verification activities authorized under subsection (a). The
            report shall include the following information:
                        (A) The activities of the overseas investigators of
                    the Department.
                        (B) The types of goods and technologies that were
                    subject to end use verification.
                        (C) The ability of the Department's investigators
                    to detect the illegal transfer of high risk, dual-use
                    goods and technologies.
                (3) Enhancements.--In addition to the authorization
            provided in paragraph (1), there is authorized to be
            appropriated for the Department of Commerce $5,000,000 to
            enhance its program for verifying the end use of items subject
            to controls under this Act.
        (j) Enhanced Cooperation With United States Customs Service.--
    Consistent with the purposes of this Act, the Secretary is authorized
    to undertake, in cooperation with the United States Customs Service,
    such measures as may be necessary or required to enhance the ability of
    the United States to detect unlawful exports and to enforce violations
    of this Act.
        (k) Reference to Enforcement.--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, license, or order issued under this Act.
        (l) Authorization for Export Licensing and Enforcement Computer
    System.--There is authorized to be appropriated for the Department
    $5,000,000 and such other sums as may be necessary for planning,
    design, and procurement of a computer system to replace the
    Department's primary export licensing and computer enforcement system.
        (m) Authorization for Bureau of Export Administration.--The
    Secretary may authorize, without fiscal year limitation, the
    expenditure of funds transferred to, paid to, received by, or made
    available to the Bureau of Export Administration as a reimbursement in
    accordance with section 9703 of title 31, United States Code (as added
    by Public Law 102-393). The Secretary may also authorize, without
    fiscal year limitation, the expenditure of funds transferred to, paid
    to, received by, or made available to the Bureau of Export
    Administration as a reimbursement from the Department of Justice Assets
    Forfeiture Fund in accordance with section 524 of title 28, United
    States Code. Such funds shall be deposited in an account and shall
    remain available until expended.
        (n) Amendments to Title 31.--
                (1) Section 9703(a) of title 31, United States Code (as
            added by Public Law 102-393) is amended by striking ``or the
            United States Coast Guard'' and inserting ``, the United States
            Coast Guard, or the Bureau of Export Administration of the
            Department of Commerce''.
                (2) Section 9703(a)(2)(B)(i) of title 31, United States
            Code is amended (as added by Public Law 102-393)--
                        (A) by striking ``or'' at the end of subclause (I);
                        (B) by inserting ``or'' at the end of subclause
                    (II); and
                        (C) by inserting at the end, the following new
                    subclause:
                                        ``(III) a violation of the Export
                                    Administration Act of 1979, the Export
                                    Administration Act of 2001, or any
                                    regulation, license, or order issued
                                    under those Acts;''.
                (3) Section 9703(p)(1) of title 31, United States Code (as
            added by Public Law 102-393) is amended by adding at the end
            the following: ``In addition, for purposes of this section, the
            Bureau of Export Administration of the Department of Commerce
            shall be considered to be a Department of the Treasury law
            enforcement organization.''.
        (o) Authorization for License Review Officers.--
                (1) In general.--There is authorized to be appropriated to
            the Department of Commerce $2,000,000 to hire additional
            license review officers.
                (2) Training.--There is authorized to be appropriated to
            the Department of Commerce $2,000,000 to conduct professional
            training of license review officers, auditors, and
            investigators conducting post-shipment verification checks.
            These funds shall be used to--
                        (A) train and certify, through a formal program,
                    new employees entering these positions for the first
                    time; and
                        (B) the ongoing professional training of
                    experienced employees on an as needed basis.
        (p) Authorization.--
                (1) In general.--There are authorized to be appropriated to
            the Department of Commerce to carry out the purposes of this
            Act--
                        (A) $72,000,000 for the fiscal year 2002, of which
                    no less than $27,701,000 shall be used for compliance
                    and enforcement activities;
                        (B) $73,000,000 for the fiscal year 2003, of which
                    no less than $28,312,000 shall be used for compliance
                    and enforcement activities;
                        (C) $74,000,000 for the fiscal year 2004, of which
                    no less than $28,939,000 shall be used for compliance
                    and enforcement activities;
                        (D) $76,000,000 for the fiscal year 2005, of which
                    no less than $29,582,000 shall be used for compliance
                    and enforcement activities; and
                        (E) 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.
                (2) Termination.--The authority granted by this Act shall
            terminate on December 31, 2005.

    SEC. 507. ADMINISTRATIVE PROCEDURE.

        (a) Exemptions From Administrative Procedure.--Except as provided
    in 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) Procedures Relating to Civil Penalties and Sanctions.--
                (1) Administrative procedures.--Any administrative sanction
            imposed under section 503 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, except that the
            review shall be initiated in the United States Court of Appeals
            for the District of Columbia Circuit, which shall have
            jurisdiction of the review.
                (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 502 shall be made available for public
            inspection and copying.
        (c) Collection.--If any person fails to pay a civil penalty imposed
    under section 503, the Secretary may ask the Attorney General to
    commence a civil action in an appropriate district court of the United
    States 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 Act, or any regulation,
            order, or license issued under this Act, including any
            diversion of goods or technology from an authorized end use or
            end user, and in any case in which a criminal indictment has
            been returned against a person alleging a violation of this Act
            or any of the statutes listed in section 503, the Secretary
            may, without a hearing, issue an order temporarily denying that
            person's United States export privileges (hereafter in this
            subsection referred to as a ``temporary denial order''). A
            temporary denial order shall be effective for such period (not
            in excess of 180 days) as the Secretary specifies in the order,
            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 that constitutes or
                    would constitute a violation of this Act, or any
                    regulation, order, or license issued under this Act; or
                        (B) a criminal indictment has been returned against
                    the person subject to the order alleging a violation of
                    this Act or any of the statutes listed in section 503.
            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 that constitutes or
            would constitute a violation of this title, or any regulation,
            order, or license issued under this Act, or whether a criminal
            indictment has been returned against the person subject to the
            order alleging a violation of this Act or of any of the
            statutes listed in section 503. 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) Limitations on Review of Classified Information.--Any
    classified information that is included in the administrative record
    that is subject to review pursuant to subsection (b)(1) or (d)(3) may
    be reviewed by the court only on an ex parte basis and in camera.

               TITLE VI--EXPORT CONTROL AUTHORITY AND REGULATIONS

    SEC. 601. EXPORT CONTROL AUTHORITY AND REGULATIONS.

        (a) Export Control Authority.--
                (1) In general.--Unless otherwise reserved to the President
            or a department (other than the Department) or agency of the
            United States, all power, authority, and discretion conferred
            by this Act shall be exercised by the Secretary.
                (2) Delegation of functions of the secretary.--The
            Secretary may delegate any function under this Act, unless
            otherwise provided, to the Under Secretary of Commerce for
            Export Administration or to any other officer of the
            Department.
        (b) Under Secretary of Commerce; Assistant Secretaries.--
                (1) Under secretary of commerce.--There shall be within the
            Department an Under Secretary of Commerce for Export
            Administration (in this section referred to as the ``Under
            Secretary'') who shall be appointed by the President, by and
            with the advice and consent of the Senate. The Under Secretary
            shall carry out all functions of the Secretary under this Act
            and other provisions of law relating to national security, as
            the Secretary may delegate.
                (2) Additional assistant secretaries.--In addition to the
            number of Assistant Secretaries otherwise authorized for the
            Department of Commerce, there shall be within the Department of
            Commerce the following Assistant Secretaries of Commerce:
                        (A) An Assistant Secretary for Export
                    Administration who shall be appointed by the President,
                    by and with the advice and consent of the Senate, and
                    who shall assist the Secretary and the Under Secretary
                    in carrying out functions relating to export listing
                    and licensing.
                        (B) An Assistant Secretary for Export Enforcement
                    who shall be appointed by the President, by and with
                    the advice and consent of the Senate, and who shall
                    assist the Secretary and the Under Secretary in
                    carrying out functions relating to export enforcement.
        (c) Issuance of Regulations.--
                (1) In general.--The President and the Secretary may issue
            such regulations as are necessary to carry out this Act. Any
            such regulations the purpose of which is to carry out title II
            or title III 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 control advisory committee
            appointed under section 105(a) 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.
                (2) 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 International Relations 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 control
            advisory committees appointed under section 105(a) in amending
            regulations issued under this Act.
                (3) Regulations on exports to foreign nationals.--The
            Secretary, with the concurrence of the Secretary of State and
            the Secretary of Defense, shall issue regulations to govern the
            release of technology to a foreign national within the United
            States and to establish appropriate procedures and entities to
            ensure compliance with those regulations.

    SEC. 602. CONFIDENTIALITY OF INFORMATION.

        (a) Exemptions From Disclosure.--
                (1) Information obtained on or before june 30, 1980.--
            Except as otherwise provided by the third sentence of section
            502(c)(2) and by section 507(b)(2), information obtained under
            the Export Administration Act of 1979, or any predecessor
            statute, on or before June 30, 1980, which is deemed
            confidential, including Shipper's Export Declarations, or with
            respect 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.
                (2) Information obtained after june 30, 1980.--Except as
            otherwise provided by the third sentence of section 502(c)(2)
            and by section 507(b)(2), information obtained under this Act,
            under the Export Administration Act of 1979 after June 30,
            1980, or under the Export Administration regulations as
            maintained and amended under the authority of the International
            Emergency Economic Powers Act (50 U.S.C. 1706), 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 (or recordkeeping or reporting
            requirement) under the Export Administration Act of 1979, under
            this Act, or under the Export Administration regulations as
            maintained and amended under the authority of the International
            Emergency Economic Powers Act (50 U.S.C. 1706), including--
                        (A) the export license or other export
                    authorization itself,
                        (B) classification requests described in section
                    401(h),
                        (C) information or evidence obtained in the course
                    of any investigation by an officer or employee of the
                    Department of Commerce,
                        (D) information obtained or furnished under title V
                    in connection with any international agreement, treaty,
                    or other obligation, and
                        (E) information obtained in making the
                    determinations set forth in section 211 of this Act,
            and information obtained in any investigation of an alleged
            violation of section 502 of this Act except for information
            required to be disclosed by section 502(c)(2) or 507(b)(2) of
            this Act, 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.
        (b) Information to Congress and GAO.--
                (1) In general.--Nothing in this title shall be construed
            as authorizing the withholding of information from Congress or
            from the General Accounting Office.
                (2) Availability to the congress--
                        (A) In general.--Any information obtained at any
                    time under this title or under any predecessor Act
                    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 Act or any
                    predecessor Act 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 subsection (a),
                    information described 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 Congress in accordance with this
                    paragraph, any such information which is submitted on a
                    confidential basis and from which any individual can be
                    identified.
        (c) Information Exchange.--Notwithstanding subsection (a), the
    Secretary and the Commissioner of Customs shall exchange licensing and
    enforcement information with each other as necessary to facilitate
    enforcement efforts and effective license decisions.
        (d) Penalties for Disclosure of Confidential Information.--
                (1) Disclosure prohibited.--No officer or employee of the
            United States, or any department or agency thereof, may
            publish, divulge, disclose, or make known in any manner or to
            any extent not authorized by law any information that--
                        (A) the officer or employee 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 section.
                (2) Criminal penalties.--Any such officer or employee who
            knowingly violates paragraph (1) shall be fined not more than
            $50,000, imprisoned not more than 1 year, or both, for each
            violation of paragraph (1). Any such officer or employee may
            also be removed from office or employment.
                (3) Civil penalties; administrative sanctions.--The
            Secretary may impose a civil penalty of not more than $5,000
            for each violation of paragraph (1), except that no civil
            penalty may be imposed on an officer or employee of the United
            States, or any department or agency thereof, without the
            concurrence of the department or agency employing such officer
            or employee. Subsections 503(e), (g), (h), and (i) and 507(a),
            (b), and (c) shall apply to actions to impose civil penalties
            under this paragraph. At the request of the Secretary, a
            department or agency employing an officer or employee
            determined to have violated paragraph (1) shall deny that
            officer or employee access to information exempt from
            disclosure under this section. Any officer or employee who
            commits a violation of paragraph (1) may also be removed from
            office or employment by the employing agency. Any officer or
            employee who commits such violation may also be removed from
            office or employment for the violation of paragraph (1).
            Sections 503 (e), (g), (h), and (i) and 507 (a), (b), and (c)
            shall apply to violations described in this paragraph.

                        TITLE VII--EXPORTS OF SATELLITES

    SEC. 701. APPLICABILITY.

        This title applies with respect to exports, and all applications
    for licenses to export, satellites and related items, notwithstanding
    any other provision of this or any other Act.

    SEC. 702. EXPORT CONTROLS ON SATELLITES AND RELATED ITEMS.

        All satellites and related items that were on the Commerce Control
    List of dual-use items in the Export Administration Regulations (15
    C.F.R. part 730 et seq.) on October 16, 1998, shall, subject to
    sections 703 and 704, be controlled under this Act.

    SEC. 703. EXPORT LICENSE PROCEDURES.

        (a) Referral to Other Departments and Agencies.--The Secretary
    shall refer to the Secretary of Defense, the Secretary of State, and
    the heads of other departments and agencies that the Secretary
    considers appropriate, all applications for licenses to export
    satellites and related items.
        (b) Required Consultations With Intelligence Community.--The
    Secretary, the Secretary of Defense, and the Secretary of State, as
    appropriate, shall consult with the Director of Central Intelligence
    during the review of any application for a license involving the
    overseas launch of a commercial satellite of United States origin.
        (c) Time Period for Referrals.--Within 30 days after the Secretary
    refers an export license application under this section, each
    department or agency to which an export license application has been
    referred shall provide the Secretary with a recommendation to either
    approve or deny the license application. A department or agency that
    fails to provide a recommendation within that 30-day period shall be
    deemed to have no objection to the decision of the Secretary on the
    license application.
        (d) Interagency Dispute Resolution Process.--If there is no
    agreement among the Secretary, the Secretary of Defense, and the
    Secretary of State to issue or deny a license to which this section
    applies, then the Secretary shall refer the license application to an
    interagency dispute resolution process established by the President.
    The dispute resolution process shall be completed within a period of 60
    days. A license pursuant to the application shall not be issued or
    denied until the Secretary, the Secretary of Defense, and the Secretary
    of State agree to issue or deny the license, or until the President
    makes a determination to issue or deny the license.

    SEC. 704. MANDATORY STATE DEPARTMENT REVIEW.

        (a) Certain Defense Services.--The provision of defense services by
    United States persons, including services or assistance provided during
    technical interchange meetings, in connection with the launch of a
    satellite from, or by nationals of, the People's Republic of China, are
    subject to section 38 of the Arms Export Control Act.
        (b) Notification to Congress.--At least 30 days before any export
    license or any technical assistance agreement is approved under
    subsection (a), the President shall transmit a certification with
    respect to such export license or technical assistance agreement
    pursuant to section 36(c) of the Arms Export Control Act, without
    regard to the value limitation thereunder.

    SEC. 705. DEFINITIONS.

        In this title:
                (1) Defense service.--The term ``defense service'' shall
            have the meaning set forth in section 47 of the Arms Export
            Control Act or regulations issued thereunder.
                (2) Related items.--The term ``related items'' means the
            satellite fuel, ground support equipment, test equipment,
            payload adapter or interface hardware, replacement parts, and
            nonembedded solid propellant orbit transfer engines described
            in the report submitted to Congress by the Department of State
            on February 6, 1998, pursuant to section 38(f) of the Arms
            Export Control Act (22 U.S.C. 2778(f)), as well as systems,
            components, parts, accessories, and associated equipment for
            satellites, including ground control equipment.
                (3) Satellite.--The term ``satellite'' means any commercial
            communications satellite.

    SEC. 706. CONFORMING AMENDMENTS.

        (a) 1999 NDAA.--(1) Section 1513(a) of the Strom Thurmond National
    Defense Authorization Act for Fiscal Year 1999 (22 U.S.C. 2778 note) is
    repealed.
        (2) Section 1513(c) of that Act is amended by striking ``(1)
    Subsection (a)'' and all that follows through ``(2)''.
        (3) Section 1514(a)(6) of that Act is amended by striking
    ``Secretary of State'' and inserting ``Secretary of Commerce and the
    Secretary of State''.
        (b) 2000 NDAA.--(1) Section 1404 of the National Defense
    Authorization Act for Fiscal Year 2000 (22 U.S.C. 2778 note) is amended
    in the matter preceding paragraph (1), by striking ``Secretary of
    State'' and inserting ``Secretary of Commerce or the Secretary of
    State, as the case may be,''.
        (2) Section 1410 of that Act, and the item relating to that section
    in the table of contents of that Act, are repealed.
        (3) Section 1411(a) of that Act is amended in the first sentence by
    striking ``involving the overseas launch of a commercial satellite of
    United States origin'' and inserting ``to provide defense services
    referred to in section 704 of the Export Administration Act of 2001, in
    connection with the launch of a satellite''.
        (4) Section 1412(d) of that Act is amended by striking ``Secretary
    of State and'' and inserting ``Secretary of Commerce, the Secretary of
    State, and''.
        (c) Additional Conforming Amendments.--(1) Section 1309 of the
    Admiral James W. Nance and Meg Donovan Foreign Relations Authorization
    Act, Fiscal Years 2000 and 2001 (as enacted by Public Law 106-113; 113
    Stat. 1501A-460) is amended--
                (A) by amending the section heading to read as follows:

    ``SEC. 1309. OFFICE OF DEFENSE TRADE CONTROLS.'';

                (B) by striking subsections (a) and (c); and
                (C) in subsection (b), by striking ``(b) Financial and
            Personnel Resources.--''.
        (2) The table of contents of that Act is amended by striking the
    item relating to section 1309 and inserting the following:

    ``Sec. 1309. Office of Defense Trade Controls.''.

    SEC. 707. EFFECTIVE DATE.

        (a) In General.--This title and the amendments made by this Act
    shall take effect on the date of the enactment of this Act, and shall
    apply to any export license application made under the Arms Export
    Control Act before such date of enactment which is pending on such
    date, and to any export license application made on or after such date.
        (b) Transfer of Pending Applications.--Any export license
    application made under the Arms Export Control Act before the date of
    the enactment of this Act, to which section 702 of this Act applies and
    which is pending on such date of enactment, shall be transferred to the
    Department of Commerce upon the enactment of this Act.

    SEC. 708. EFFECT ON EXISTING LAW.

        Nothing in this title shall affect the continued application of
    section 36 or 38 of the Arms Export Control Act, or any other provision
    of that Act, to the export or other provision of defense services
    related to items in Category 4 of the United States Munitions List.

                      TITLE VIII--MISCELLANEOUS PROVISIONS

    SEC. 801. ANNUAL REPORT.

        (a) Annual Report.--Not later than February 1 of each year, the
    Secretary shall submit to Congress a report on the administration of
    this Act during the fiscal year ending September 30 of the preceding
    calendar year. All Federal agencies shall cooperate fully with the
    Secretary in providing information for each such report.
        (b) Report Elements.--Each such report shall include in detail--
                (1) a description of the implementation of the export
            control policies established by this Act, including any
            delegations of authority by the President and any other changes
            in the exercise of delegated authority;
                (2) a description of the changes to and the year-end status
            of country tiering and the Control List;
                (3) a description of the petitions filed and the
            determinations made with respect to foreign availability and
            mass-market status, the set-asides of foreign availability and
            mass-market status determinations, and negotiations to
            eliminate foreign availability;
                (4) a description of any enhanced control imposed on an
            item pursuant to section 201(d);
                (5) a description of the regulations issued under this Act;
                (6) a description of organizational and procedural changes
            undertaken in furtherance of this Act;
                (7) a description of the enforcement activities,
            violations, and sanctions imposed under this Act;
                (8) a statistical summary of all applications and
            notifications, including--
                        (A) the number of applications and notifications
                    pending review at the beginning of the fiscal year;
                        (B) the number of notifications returned and
                    subject to full license procedure;
                        (C) the number of notifications with no action
                    required;
                        (D) the number of applications that were approved,
                    denied, or withdrawn, and the number of applications
                    where final action was taken; and
                        (E) the number of applications and notifications
                    pending review at the end of the fiscal year;
                (9) summary of export license data by export identification
            code and dollar value by country;
                (10) an identification of processing time by--
                        (A) overall average, and
                        (B) top 25 export identification codes;
                (11) an assessment of the effectiveness of multilateral
            regimes, and a description of negotiations regarding export
            controls;
                (12) a description of the significant differences between
            the export control requirements of the United States and those
            of other multilateral control regime members, and the specific
            differences between United States requirements and those of
            other significant supplier countries;
                (13) an assessment of the costs of export controls;
                (14) a description of the progress made toward achieving
            the goals established for the Department dealing with export
            controls under the Government Performance Results Act;
                (15) an analysis and risk assessment of dual-use United
            States-origin items useful for the development or production of
            weapons of mass destruction acquired by countries identified by
            the Director of the Central Intelligence in the most recent
            report submitted to Congress under section 721 of the
            Intelligence Authorization Act for Fiscal Year 1997; and
                (16) any other reports required by this Act to be submitted
            to the Committee on Banking, Housing, and Urban Affairs of the
            Senate and the Committee on International Relations of the
            House of Representatives.
        (c) Federal Register Publication Requirements.--Whenever
    information under this Act is required to be published in the Federal
    Register, such information shall, in addition, be posted on the
    Department of Commerce or other appropriate government website.

    SEC. 802. RELATIONSHIP TO THE ARMS EXPORT CONTROL ACT.

        Nothing in this Act shall be construed to alter or affect--
                (1) any provision of the Arms Export Control Act; or
                (2) any authority delegated by the President to the
            Secretary of State under the Arms Export Control Act.

    SEC. 803. ENHANCEMENT OF CONGRESSIONAL OVERSIGHT OF NUCLEAR TRANSFERS
                        TO NORTH KOREA.

        The North Korea Threat Reduction Act of 1999 (subtitle B of title
    VIII of division A of H.R. 3427, as enacted into law by section
    1000(a)(7) of Public Law 106-113, and as contained in appendix G to
    such Public Law) is amended in section 822(a)--
                (1) by redesignating paragraphs (1) through (7) as
            subparagraphs (A) through (G), respectively, and by indenting
            each such subparagraph 2 ems to the right;
                (2) by striking ``until the President'' and inserting
            ``until--
                ``(1) the President'';
                (3) at the end of subparagraph (G) (as redesignated in
            paragraph (1)) by striking the period and inserting ``; and
                ``(2) a joint resolution of the two Houses of Congress is
            enacted into law--
                        ``(A) the matter after the resolving clause of
                    which is as follows: `That the Congress hereby concurs
                    in the determination and report of the President
                    relating to compliance by North Korea with certain
                    international obligations transmitted pursuant to
                    section 822(a)(1) of the North Korea Threat Reduction
                    Act of 1999.';
                        ``(B) which does not have a preamble; and
                        ``(C) the title of which is as follows: `Joint
                    Resolution relating to compliance by North Korea with
                    certain international obligations pursuant to the North
                    Korea Threat Reduction Act of 1999.'.''; and
                (4) by striking ``such agreement,'' both places it appears
            and inserting in both places ``such agreement (or that are
            controlled under the Export Trigger List of the Nuclear
            Suppliers Group),''.

    SEC. 804. PROCEDURES FOR CONSIDERATION OF JOINT RESOLUTIONS.

        The North Korea Threat Reduction Act of 1999 is amended--
                (1) by redesignating section 823, and the item relating to
            that section in the table of contents, as section 824;
                (2) by inserting after section 822 the following new
            section:

    ``SEC. 823. PROCEDURES FOR CONSIDERATION OF JOINT RESOLUTION DESCRIBED
                        IN SECTION 822(A)(2).

        ``(a) Rulemaking.--The provisions of this section are enacted by
    the Congress--
                ``(1) as an exercise of the rulemaking power of the House
            of Representatives and the Senate, respectively, and, as such,
            shall be considered as part of the rules of either House and
            shall supersede other rules only to the extent they are
            inconsistent therewith; and
                ``(2) with full recognition of the constitutional right of
            either House to change the rules so far as they relate to the
            procedures of that House at any time, in the same manner, and
            to the same extent as in the case of any other rule of that
            House.
        ``(b) Introduction and Referral.--
                ``(1) Introduction.--A joint resolution described in
            section 822(a)(2)--
                        ``(A) shall be introduced in the House of
                    Representatives by the majority leader or minority
                    leader or by a Member of the House of Representatives
                    designated by the majority leader or minority leader;
                    and
                        ``(B) shall be introduced in the Senate by the
                    majority leader or minority leader or a Member of the
                    Senate designated by the majority leader or minority
                    leader.
                ``(2) Referral.--The joint resolution shall be referred to
            the Committee on International Relations of the House of
            Representatives and the Committee on Foreign Relations of the
            Senate.
        ``(c) Discharge of Committees.--If a committee to which a joint
    resolution described in section 822(a)(2) is referred has not reported
    such joint resolution by the end of 30 days beginning on the date of
    its introduction, such committee shall be discharged from further
    consideration of such joint resolution, and such joint resolution shall
    be placed on the appropriate calendar of the House involved.
        ``(d) Floor Consideration in the House of Representatives.--
                ``(1) In general.--On or after the third calendar day
            (excluding Saturdays, Sundays, or legal holidays, except when
            the House of Representatives is in session on such a day) after
            the date on which the committee to which a joint resolution
            described in section 822(a)(2) is referred has reported, or has
            been discharged from further consideration of, such a joint
            resolution, it shall be in order for any Member of the House to
            move to proceed to the consideration of the joint resolution. A
            Member of the House may make the motion only on the day after
            the calendar day on which the Member announces to the House the
            Member's intention to do so. Such motion is privileged and is
            not debatable. The motion is not subject to amendment or to a
            motion to postpone. A motion to reconsider the vote by which
            the motion is agreed to shall not be in order. If a motion to
            proceed to the consideration of the joint resolution is agreed
            to, the House shall immediately proceed to consideration of the
            joint resolution which shall remain the unfinished business
            until disposed of.
                ``(2) Debate.--Debate on a joint resolution described in
            section 822(a)(2), and on all debatable motions and appeals in
            connection therewith, shall be limited to not more than two
            hours, which shall be divided equally between those favoring
            and those opposing the joint resolution. An amendment to the
            joint resolution is not in order. A motion further to limit
            debate is in order and is not debatable. A motion to table, a
            motion to postpone, or a motion to recommit the joint
            resolution is not in order. A motion to reconsider the vote by
            which the joint resolution is agreed to or disagreed to is not
            in order.
                ``(3) Appeals.--Appeals from the decisions of the Chair to
            the procedure relating to a joint resolution described in
            section 822(a)(2) shall be decided without debate.
        ``(e) Floor Consideration in the Senate.--Any joint resolution
    described in section 822(a)(2) 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.
        ``(f) Consideration by the Other House.--If, before the passage by
    one House of a joint resolution of that House described in section
    822(a)(2), that House receives from the other House a joint resolution
    described in section 822(a)(2), then the following procedures shall
    apply:
                ``(1) The joint resolution of the other House shall not be
            referred to a committee and may not be considered in the House
            receiving it except in the case of final passage as provided in
            paragraph (2)(B).
                ``(2) With respect to a joint resolution described in
            section 822(a)(2) of the House receiving the joint resolution--
                        ``(A) the procedure in that House shall be the same
                    as if no joint resolution had been received from the
                    other House; but
                        ``(B) the vote on final passage shall be on the
                    joint resolution of the other House.
                ``(3) Upon disposition of the joint resolution received
            from the other House, it shall no longer be in order to
            consider the joint resolution that originated in the receiving
            House.
        ``(g) Computation of Days.--In the computation of the period of 30
    days referred to in subsection (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.''; and
                (3) by inserting after the item relating to section 822 in
            the table of contents the following new item:

    ``Sec. 823. Procedures for consideration of joint resolution described
    in section 822(a)(2).''.

    SEC. 805. RECOMMENDATIONS OF THE JUDICIAL REVIEW COMMISSION ON FOREIGN
                        ASSET CONTROL.

        In accordance with the findings of the Judicial Review Commission
    on Foreign Asset Control contained in the report of the Commission
    submitted to Congress in January 2001 under section 810(g) of the
    Foreign Narcotics Kingpin Designation Act (21 U.S.C. 1908(g)), the
    President shall direct the Office of Foreign Assets Control of the
    Department of the Treasury to--
                (1) publish proposed regulations on sanctions in order to
            provide public notice of, and invite public comment on, the
            proposed regulations, unless exigent circumstances are present;
                (2) provide interpretations and guidelines to accompany the
            issuance of regulations; and
                (3) take steps to expand and enhance the transparency of
            its operations and decisionmaking standards by publishing its
            licensing and civil penalty decisions in unclassified form and
            by providing answers to ``frequently asked questions'' on its
            website.

    SEC. 806. IMPROVEMENTS TO THE AUTOMATED EXPORT SYSTEM.

        (a) Mandatory Filing.--The Secretary, with the concurrence of the
    Secretary of State and the Secretary of the Treasury, shall publish
    regulations in the Federal Register to require, upon the effective date
    of those regulations, the mandatory filing through the Automated Export
    System for the remainder of exports that were not covered by
    regulations issued pursuant to section 1252(b) of the Security
    Assistance Act of 1999 (113 Stat. 1501A-506), as enacted into law by
    section 1000(a)(7) of Public Law 106-113.
        (b) Requirement for Information Sharing.--The Secretary of State
    shall conclude an information sharing arrangement with the heads of
    United States Customs Service and the Census Bureau to adjust the
    Automated Export System to parallel information currently collected by
    the Department of State.
        (c) Secretary of Treasury Functions.--Section 303 of title 13,
    United States Code, is amended by striking ``, other than by mail,''.
        (d) Filing Export Information, Delayed Filings, Penalties for
    Failure To File.--Section 304 of title 13, United States Code, is
    amended--
                (1) in subsection (a)--
                        (A) in the first sentence, by striking ``the penal
                    sum of $1,000'' and inserting ``a penal sum of
                    $10,000''; and
                        (B) in the third sentence, by striking ``a penalty
                    not to exceed $100 for each day's delinquency beyond
                    the prescribed period, but not more than $1,000, shall
                    be exacted'' and inserting ``the Secretary of Commerce
                    (and officers and employees of the Department of
                    Commerce designated by the Secretary) may impose a
                    civil penalty not to exceed $1,000 for each day's
                    delinquency beyond the prescribed period, but not more
                    than $10,000 per violation'';
                (2) by redesignating subsection (b) as subsection (c); and
                (3) by inserting after subsection (a) the following:
          ``(b) Any person, other than a person described in subsection
    (a), required to submit export information, shall file such information
    in accordance with any rule, regulation, or order issued pursuant to
    this chapter. In the event any such information or reports are not
    filed within such prescribed period, the Secretary of Commerce (and
    officers and employees of the Department of Commerce designated by the
    Secretary) may impose a civil penalty not to exceed $1,000 for each
    day's delinquency beyond the prescribed period, but not more than
    $10,000 per violation.''.
        (e) Additional Penalties.--
                (1) In general.--Section 305 of title 13, United States
            Code, is amended to read as follows:

    ``Sec. 305. Penalties for unlawful export information activities

        ``(a) Criminal Penalties.--(1) Any person who knowingly fails to
    file or knowingly submits false or misleading export information
    through the Shippers Export Declaration (SED) (or any successor
    document) or the Automated Export System (AES) shall be subject to a
    fine not to exceed $10,000 per violation or imprisonment for not more
    than 5 years, or both.
        ``(2) Any person who knowingly reports any information on or uses
    the SED or the AES to further any illegal activity shall be subject to
    a fine not to exceed $10,000 per violation or imprisonment for not more
    than 5 years, or both.
        ``(3) Any person who is convicted under this subsection 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.
        ``(b) Civil Penalties.--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 per violation on any
    person violating the provisions of this chapter or any rule,
    regulation, or order issued thereunder, except as provided in section
    304. Such penalty may be in addition to any other penalty imposed by
    law.
        ``(c) Civil Penalty Procedure.--(1) When a civil penalty is sought
    for a violation of this section or of section 304, 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. Any such hearing shall be conducted in
    accordance with sections 556 and 557 of title 5.
        ``(2) If any person fails to pay a civil penalty imposed under this
    chapter, the Secretary may ask the Attorney General to commence a civil
    action in an appropriate district court of the United States 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 action, the validity, amount, and appropriateness of such penalty
    shall not be subject to review.
        ``(3) The Secretary may remit or mitigate any penalties imposed
    under paragraph (1) if, in his or her opinion--
                ``(A) the penalties were incurred without willful
            negligence or fraud; or
                ``(B) other circumstances exist that justify a remission or
            mitigation.
        ``(4) If, pursuant to section 306, the Secretary delegates
    functions under this section to another agency, the provisions of law
    of that agency relating to penalty assessment, remission or mitigation
    of such penalties, collection of such penalties, and limitations of
    actions and compromise of claims, shall apply.
        ``(5) Any amount paid in satisfaction of a civil penalty imposed
    under this section or section 304 shall be deposited into the general
    fund of the Treasury and credited as miscellaneous receipts.
        ``(d) Enforcement.--(1) The Secretary of Commerce may designate
    officers or employees of the Office of Export Enforcement to conduct
    investigations pursuant to this chapter. In conducting such
    investigations, those officers or employees may, to the extent
    necessary or appropriate to the enforcement of this chapter, exercise
    such authorities as are conferred upon them by other laws of the United
    States, subject to policies and procedures approved by the Attorney
    General.
        ``(2) The Commissioner of Customs may designate officers or
    employees of the Customs Service to enforce the provisions of this
    chapter, or to conduct investigations pursuant to this chapter.
        ``(e) Regulations.--The Secretary of Commerce shall promulgate
    regulations for the implementation and enforcement of this section.
        ``(f) Exemption.--The criminal fines provided for in this section
    are exempt from the provisions of section 3571 of title 18.''.
                (2) Clerical amendment.--The table of sections at the
            beginning of chapter 9 of title 13, United States Code, is
            amended by striking the item relating to section 305 and
            inserting the following:

    ``305. Penalties for unlawful export information activities.''.

    SEC. 807. TECHNICAL AND CONFORMING AMENDMENTS.

        (a) Repeal.--The Export Administration Act of 1979 (50 U.S.C. App.
    2401 et seq.) is repealed.
        (b) Energy Policy and Conservation Act.--
                (1) Section 103 of the Energy Policy and Conservation Act
            (42 U.S.C. 6212), and the item relating to that section in the
            table of contents for that Act, are repealed.
                (2) Section 251(d) of the Energy Policy and Conservation
            Act (42 U.S.C. 6271(d)) is repealed.
        (c) Alaska Natural Gas Transportation Act.--Section 12 of the
    Alaska Natural Gas Transportation Act of 1976 (15 U.S.C. 719j) is
    repealed.
        (d) Mineral Leasing Act.--Section 28(u) of the Mineral Leasing Act
    (30 U.S.C. 185(u)) is repealed.
        (e) Exports of Alaskan North Slope Oil.--Section 28(s) of the
    Mineral Leasing Act (30 U.S.C. 185(s)) is repealed.
        (f) Disposition of Certain Naval Petroleum Reserve Products.--
    Section 7430(e) of title 10, United States Code, is repealed.
        (g) Outer Continental Shelf Lands Act.--Section 28 of the Outer
    Continental Shelf Lands Act (43 U.S.C. 1354) is repealed.
        (h) Arms Export Control Act.--The Arms Export Control Act is
    amended as follows:
                (1) Section 36(g) (22 U.S.C. 2776(g)) is amended by
            striking ``12(c) of the Export Administration Act of 1979'' and
            inserting ``602(c) of the Export Administration Act of 2001''.
                (2) Section 38 (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
                            503 of the Export Administration Act of 2001,
                            by subsections (a) and (b) of section 506 of
                            that Act, and by section 602 of that Act,'';
                                (ii) in the first sentence, by striking
                            ``11(c)(2)(B)'' and inserting ``507(b)(1)'';
                            and
                                (iii) in the third sentence, by striking
                            ``11(c) of the Export Administration Act of
                            1979'' and inserting ``503(c) of the Export
                            Administration Act of 2001'';
                        (B) in subsection (f)(1), by striking ``1979'' and
                    inserting ``2001''; and
                        (C) in subsection (g)(1)(A)(ii), by inserting ``or
                    section 503 of the Export Administration Act of 2001''
                    after ``1979''.
                (3) Section 39A(c) (22 U.S.C. 2779a(c)) is amended--
                        (A) by striking ``subsections (c),'' and all that
                    follows through ``12(a) of such Act'' and inserting
                    ``subsections (c), (d), and (e) of section 503, section
                    507(c), and subsections (a) and (b) of section 506, of
                    the Export Administration Act of 2001'';
                        (B) by striking ``11(c)(2)(B) of such Act'' and
                    inserting ``507(b)(1) of that Act''; and
                        (C) by striking ``11(c)'' and inserting ``503(c)''.
                (4) Section 40(k) (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
                    ``503(b), 503(c), 503(e), 506(a), and 506(b) of the
                    Export Administration Act of 2001'';
                        (B) by striking ``11(c)(2)(B)'' and inserting
                    ``507(b)(1)''; and
                        (C) by striking ``11(c)'' and inserting ``503(c)''.
                (5) Section 71(a) (22 U.S.C. 2797(a)) is amended by
            striking ``section 6(l) of the Export Administration Act of
            1979'' and inserting ``title II or III of the Export
            Administration Act of 2001''.
                (6) Section 72 (22 U.S.C. 2797a) is amended--
                        (A) in subsection (a)(1)(A), by striking ``section
                    5 or 6 of the Export Administration Act of 1979 (50
                    U.S.C. App. 2404, 2405)'' and inserting ``title II or
                    III of the Export Administration Act of 2001''; and
                        (B) in subsection (c), by striking ``6(j)(1)(A) of
                    the Export Administration Act of 1979'' and inserting
                    ``310(a)(1) of the Export Administration Act of 2001''.
                (7) Section 73 (22 U.S.C. 2797b) is amended--
                        (A) in subsection (a)(1), by striking ``11B(b)(1)
                    of the Export Administration Act of 1979'' and
                    inserting ``504(b)(1) of the Export Administration Act
                    of 2001''; and
                        (B) in subsection (f), by striking ``6(j)(1)(A) of
                    the Export Administration Act of 1979'' and inserting
                    ``section 310(a)(1) of the Export Administration Act of
                    2001''.
                (8) Section 74(a)(6) (22 U.S.C. 2797c(a)(6)) is amended by
            striking ``16(2) of the Export Administration Act of 1979 (50
            U.S.C. App. 2415(2))'' and inserting ``2(20) of the Export
            Administration Act of 2001''.
                (9) Section 81(a) (22 U.S.C. 2798(a)) is amended--
                        (A) in paragraph (1)(C), by striking ``1979'' and
                    inserting ``2001''; and
                        (B) in paragraph (2)(B), by striking ``section 6(j)
                    of the Export Administration Act of 1979 (50 U.S.C.
                    2405(j))'' and inserting ``section 310 of the Export
                    Administration Act of 2001''.
                (10) Section 102(b)(2)(G) (22 U.S.C. 2799aa-1(b)(2)(G)) is
            amended by striking ``section 6 of the Export Administration
            Act of 1979'' and inserting ``title III of the Export
            Administration Act of 2001''.
        (i) Other Provisions of Law.--
                (1) Section 5(b)(4) of the Trading with the Enemy Act (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 ``titles II and III of the Export
            Administration Act of 2001''.
                (2)(A) Section 502B(a)(2) of the Foreign Assistance Act of
            1961 (22 U.S.C. 2304(a)(2)) is amended in the second sentence--
                        (i) by striking ``Export Administration Act of
                    1979'' the first place it appears and inserting
                    ``Export Administration Act of 2001''; and
                        (ii) by striking ``Act of 1979)'' and inserting
                    ``Act of 2001)''.
                (B) Section 620E(h) of the Foreign Assistance Act of 1961
            (22 U.S.C. 2375(h)) is amended by striking ``11B of the Export
            Administration Act of 1979'' and inserting ``504 of the Export
            Administration Act of 2001''.
                (C) Section 620H(a)(1) of the Foreign Assistance Act of
            1961 (22 U.S.C. 2378(a)(1)) is amended by striking ``section
            6(j) of the Export Administration Act of 1979 (50 U.S.C. App.
            2405(j))'' and inserting ``section 310 of the Export
            Administration Act of 2001''.
                (3) Section 565 of the Foreign Relations Authorization Act,
            Fiscal Years 1994 and 1995 (22 U.S.C. 2679c) is amended--
                        (A) in subsection (a)--
                                (i) in paragraph (2)--
                                        (I) in subparagraph (A), by
                                    striking ``8(a) of the Export
                                    Administration Act of 1979 (50 U.S.C.
                                    App. 2407(a))'' and inserting ``502(b)
                                    of the Export Administration Act of
                                    2001'';
                                        (II) in subparagraph (A), by
                                    striking ``8(a)(1) of such Act'' and
                                    inserting ``502(b)(1) of that Act'';
                                    and
                                        (III) in subparagraph (B), by
                                    striking ``16(2) of the Export
                                    Administration Act of 1979 (50 U.S.C.
                                    App. 2415)'' and inserting ``2(20) of
                                    the Export Administration Act of
                                    2001''; and
                                (ii) in paragraph (3), by striking ``8(a)
                            of the Export Administration Act of 1979 (50
                            U.S.C. App. 2407(a))'' and inserting ``502(b)
                            of the Export Administration Act of 2001''; and
                        (B) in subsection (c)--
                                (i) in paragraph (1), in subsection (b)(1)
                            of the quoted material, by striking ``8(a) of
                            the Export Administration Act of 1979 (50
                            U.S.C. App. 2407(a))'' and inserting ``502(b)
                            of the Export Administration Act of 2001''; and
                                (ii) in paragraph (3), by striking ``8(a)
                            of the Export Administration Act of 1979 (50
                            U.S.C. App. 2407(a))'' and inserting ``502(b)
                            of the Export Administration Act of 2001''.
                (4) Section 140(a) of the Foreign Relations Authorization
            Act, Fiscal Years 1988 and 1989 (22 U.S.C. 2656f(a)) is
            amended--
                        (A) in paragraph (1)(B), by inserting ``or section
                    310 of the Export Administration Act of 2001'' after
                    ``Act of 1979''; and
                        (B) in paragraph (2), by inserting ``or section 310
                    of the Export Administration Act of 2001'' after ``6(j)
                    of the Export Administration Act of 1979''.
                (5)(A) Section 36(j)(1)(B) of the State Department Basic
            Authorities Act of 1956 (22 U.S.C. 2708(j)(1)(B)) is amended by
            striking ``section 6(j)(1)(A) of the Export Administration Act
            of 1979 (50 U.S.C. App. 2405(j)(1)(A))'' and inserting
            ``section 310(a)(1) of the Export Administration Act of 2001''.
                (B) Section 40(e)(1) of the State Department Basic
            Authorities Act of 1956 (22 U.S.C. 2712(e)(1)) is amended by
            striking ``section 6(j)(1) of the Export Administration Act of
            1979'' and inserting ``section 310 of the Export Administration
            Act of 2001''.
                (C) Section 205(d)(4)(B) of the State Department Basic
            Authorities Act of 1956 (22 U.S.C. 305(d)(4)(B)) is amended by
            striking ``section 6(j) of the Export Administration Act of
            1979'' and inserting ``section 310 of the Export Administration
            Act of 2001''.
                (6) Section 528(a) of the Foreign Operations, Export
            Financing, and Related Programs Appropriations Act, 1994
            (Public Law 103-87) is amended by striking ``6(j) of the Export
            Administration Act of 1979'' and inserting ``310 of the Export
            Administration Act of 2001''.
                (7) Section 589(a) of the Foreign Operations, Export
            Financing, and Related Programs Appropriations Act, 1997
            (Public Law 104-208) is amended by striking ``6(j) of the
            Export Administration Act of 1979'' and inserting ``310 of the
            Export Administration Act of 2001''.
                (8) 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
            2001''.
                (9) 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 2001''.
                (10)(A) Section 405(a)(13)(A) of the International
            Religious Freedom Act of 1998 (22 U.S.C. 6445(a)(13)(A)) is
            amended by striking ``1979'' and inserting ``2001''.
                (B) Section 423(a) of that Act (22 U.S.C. 6461(a)) is
            amended by striking ``6(n) of the Export Administration Act of
            1979 (22 U.S.C. App. 2405(n))'' and inserting ``311 of the
            Export Administration Act of 2001''.
                (11)(A) Section 103(e)(2)(B)(ii) of the Chemical Weapons
            Convention Implementation Act of 1998 (22 U.S.C.
            6713(e)(2)(B)(ii)) is amended to read as follows:
                                ``(ii) Sanctions under export
                            administration act of 2001.--The authorities of
                            title III of the Export Administration Act of
                            2001 shall be used to prohibit the export to a
                            person described in subparagraph (A) of any
                            items on the National Security Control List
                            established under section 202(a) of that
                            Act.''.
                (B) Section 103(e)(3)(B)(iv) of the Chemical Weapons
            Convention Implementation Act of 1998 (22 U.S.C.
            6713(e)(3)(B)(iv)) is amended to read as follows:
                                ``(iv) Sanctions under export
                            administration act of 2001.--The authorities of
                            title III of the Export Administration Act of
                            2001 shall be used to prohibit the export to a
                            country described in subparagraph (A) of any
                            items on the National Security Control List
                            established under section 202(a) of that
                            Act.''.
                (12) Section 1423(b)(1) of the Defense Against Weapons of
            Mass Destruction Act of 1996 (50 U.S.C. 2332(b)(1)) is amended
            by striking ``11 of the Export Administration Act of 1979 (50
            U.S.C. App. 2410)'' and inserting ``503 of the Export
            Administration Act of 2001''.
                (13) Section 586G of the Iraq Sanctions Act of 1990 (50
            U.S.C. 1701 note) is amended--
                        (A) by amending subsection (a)(3) to read as
                    follows:
                ``(3) Exports of certain commodities and technology.--The
            authorities of titles II and III of the Export Administration
            Act of 2001 shall be used to prohibit the export to Iraq of any
            commodities or technology on the Commerce Control List
            established under that Act.''; and
                        (B) in subsection (b) by striking ``the date
                    described in subsection (m)(1)'' and all that follows
                    through ``shall be deemed'' and inserting ``the dates
                    described in section 301(d)(1) of the Export
                    Administration Act of 2001 shall be deemed''.
                (14) Section 601(a) of the Nuclear Non-Proliferation Act of
            1978 (22 U.S.C. 3281(a)) is amended--
                        (A) in paragraph (6)--
                                (i) in subparagraph (A)--
                                        (I) in clause (iii), by striking
                                    ``1979'' and inserting ``2001''; and
                                        (II) in clause (iv), by adding
                                    ``and'' after the semicolon; and
                                (ii) in subparagraph (C)--
                                        (I) by redesignating such
                                    subparagraph as paragraph (7) and
                                    aligning the text with the text of
                                    paragraph (6) that precedes
                                    subparagraph (A); and
                                        (II) by inserting ``a description
                                    of'' before ``the progress''; and
                        (B) in the matter that appears following paragraph
                    (7), as so redesignated--
                                (i) by striking ``paragraph (6)'' and
                            inserting ``paragraphs (6) and (7)''; and
                                (ii) by striking ``12(c)(1) of the Export
                            Administration Act of 1979'' and inserting
                            ``602(a) of the Export Administration Act of
                            2001''.
                (15) Section 304(a)(2) of the Chemical and Biological
            Weapons Control and Warfare Elimination Act of 1991 (22 U.S.C.
            5603(a)(2)) is amended by striking ``1979'' and inserting
            ``2001''.
                (16) Section 307 of the Chemical and Biological Weapons
            Control and Warfare Elimination Act of 1991 (22 U.S.C. 5605) is
            amended--
                        (A) by amending paragraph (5) of subsection (a) to
                    read as follows:
                ``(5) Exports of certain goods and technology.--The
            authorities of title III of the Export Administration Act of
            2001 shall be used to prohibit the export to that country of
            any goods or technology on the National Security Control List
            established under section 202 of that Act.'';
                        (B) in subsection (b)(2)(C) by striking ``section 6
                    of the Export Administration Act of 1979'' and
                    inserting ``title III of the Export Administration Act
                    of 2001''; and
                        (C) in subsection (e)(1)(B)--
                                (i) in the first sentence, by striking
                            ``subsection (p) of section 6 of the Export
                            Administration Act of 1979 (50 U.S.C. App.
                            2405), as that subsection is so redesignated by
                            section 304(b) of this title, which are
                            applicable to exports prohibited under section
                            6 of that Act'' and inserting ``section 301(d)
                            of the Export Administration Act of 2001, which
                            are applicable to exports prohibited under
                            title III of that Act''; and
                                (ii) in the last sentence, by striking ``a
                            breach of the peace that poses a serious and
                            direct threat to the strategic interest of the
                            United States, within the meaning of
                            subparagraph (A) of section 6(p) of that Act''
                            and inserting ``a serious threat to a foreign
                            policy interest of the United States, within
                            the meaning of section 301(d)(2)(A) of the
                            Export Administration Act of 2001''.
                (17) Section 1705(c)(1) of the Cuban Democracy Act of 1992
            (22 U.S.C. 6004(c)(1)) is amended by striking ``5(m) of the
            Export Administration Act of 1979'' and inserting ``204(a) of
            the Export Administration Act of 2001''.
                (18)(A) Section 6(2)(i) of the Iran and Libya Sanctions Act
            of 1996 (50 U.S.C. 1701 note) is amended by striking ``1979''
            and inserting ``2001''.
                (B) Section 8(a)(2) of the Iran and Libya Sanctions Act of
            1996 is amended by striking ``6(j) of the Export Administration
            Act of 1979'' and inserting ``310 of the Export Administration
            Act of 2001''.
                (C) Section 14 of the Iran and Libya Sanctions Act of 1996
            is amended--
                        (i) in paragraph (3), by striking ``(50 U.S.C. App.
                    2410a(e)(1))'' and inserting ``(as in effect on August
                    20, 2001)'';
                        (ii) in paragraph (6), by striking ``(50 U.S.C.
                    App. 2410a(e)(2))'' and inserting ``(as in effect on
                    August 20, 2001)''; and
                        (iii) in paragraph (8), by striking ``(50 U.S.C.
                    App. 2415)'' and inserting ``(as in effect on August
                    20, 2001)''.
                (19) Section 1133(a)(3) of the Food Security Act of 1985 (7
            U.S.C. 1736y(3)) is amended by striking ``Export Administration
            Act'' and inserting ``International Emergency Economic Powers
            Act or in time of war under the Trading with the Enemy Act''.
                (20) Section 208(a) of the Agricultural Trade Suspension
            Adjustment Act of 1980 (7 U.S.C. 4001(a)) is amended by
            striking ``for reasons of national security or foreign policy
            under the Export Administration Act of 1979'' and inserting
            ``under title II or III of the Export Administration Act of
            2001''.
                (21) Section 411(a)(1) of the Agricultural Trade Act of
            1978 (7 U.S.C. 5671(a)(1)) is amended by striking ``for reasons
            of national security or foreign policy under the Export
            Administration Act of 1979 (50 U.S.C. App. 2401 et seq.)'' and
            inserting ``under title II or III of the Export Administration
            Act of 2001''.
                (22) Section 302(e) of the Bill Emerson Humanitarian Trust
            Act (7 U.S.C. 1736f-1(e)) is amended--
                        (A) by striking ``shall not be--
                ``(1) considered''
                    and inserting ``shall not be considered''; and
                        (B) by striking ``; and
                ``(2) subject''
                    and all that follows through the end and inserting a
                    period.
                (23)(A) Section 951(e)(2)(B) of title 18, United States
            Code, is amended by striking ``or under section 11 of the
            Export Administration Act of 1979'' and inserting ``, under
            section 11 of the Export Administration Act of 1979 (prior to
            its repeal by the Export Administration Act of 2001), or under
            section 503 of the Export Administration Act of 2001''.
                (B) Section 1956(c)(7)(D) of title 18, United States Code,
            is amended by striking ``section 11 (relating to violations) of
            the Export Administration Act of 1979'' and inserting ``section
            503 (relating to penalties) of the Export Administration Act of
            2001''.
                (C) Section 2332d(a) of title 18, United States Code, is
            amended by striking ``section 6(j) of the Export Administration
            Act (50 U.S.C. App. 2405)'' and inserting ``section 310 of the
            Export Administration Act of 2001''.
                (24)(A) Section 130(a) of title 10, United States Code, is
            amended by striking ``1979 (50 U.S.C. App. 2401-2420)'' and
            inserting ``2001''.
                (B) Section 2249a(a)(1) of title 10, United States Code, is
            amended by striking ``6(j)(1)(A) of the Export Administration
            Act of 1979 (50 U.S.C. App. 2405(j))'' and inserting
            ``310(a)(1)(A) of the Export Administration Act of 2001''.
                (C) Section 2327(b)(2) of title 10, United States Code, is
            amended by striking ``6(j)(1)(A) of the Export Administration
            Act of 1979 (50 U.S.C. App. 2405(j)(1)(A))'' and inserting
            ``310(a)(1)(A) of the Export Administration Act of 2001''.
                (D) Section 2410i(a) of title 10, United States Code, is
            amended by striking ``3(5)(A) of the Export Administration Act
            of 1979 (50 U.S.C. App. 2402(5)(A))'' and inserting ``502(a) of
            the Export Administration Act of 2001''.
                (25) Section 233 of the Trade Expansion Act of 1962 (19
            U.S.C. 1864) is amended--
                        (A) by striking ``(50 U.S.C. App. 2404),'' and
                    inserting ``(as in effect prior to its repeal by the
                    Export Administration Act of 2001), any export control
                    imposed under title II of the Export Administration Act
                    of 2001,''; and
                        (B) by striking ``that section'' and inserting
                    ``either such section''.
                (26) Section 502(b)(2)(F) of the Trade Act of 1974 (19
            U.S.C. 2462(b)(2)(F)) is amended by striking ``6(j)(1)(A) of
            the Export Administration Act of 1979'' and inserting
            ``310(a)(1) of the Export Administration Act of 2001''.
                (27) Section 133 of the Uruguay Round Agreements Act (19
            U.S.C. 3553) is amended by striking ``section 8(a) of the
            Export Administration Act of 1979 (50 U.S.C. App. 2407(a)) (as
            in effect on August 20, 1994)'' and inserting ``section 502 of
            the Export Administration Act of 2001''.
                (28) Section 901(j)(2)(A)(iv) of the Internal Revenue Code
            of 1986 (26 U.S.C. 901(j)(2)(A)(iv)) is amended by striking
            ``6(j) of the Export Administration Act of 1979, as amended''
            and inserting ``310 of the Export Administration Act of 2001''.
                (29) Section 927(a)(2) of the Internal Revenue Code of 1986
            (26 U.S.C. 927(a)(2)) is amended--
                        (A) in subparagraph (C), by adding ``or'' after the
                    comma;
                        (B) by striking subparagraph (D);
                        (C) by redesignating subparagraph (E) as
                    subparagraph (D); and
                        (D) by striking ``subparagraph (E)'' and inserting
                    ``subparagraph (D)''.
              (30) Section 943(a)(3) of the Internal Revenue Code of 1986
            (26 U.S.C. 943(a)(3)) is amended--
                        (A) in suparagraph (C), by adding ``or'' after the
                    comma;
                        (B) by striking subparagraph (D);
                        (C) by redesignating subparagraph (E) as
                    subparagraph (D); and
                        (D) by striking ``subparagraph (E)'' and inserting
                    ``subparagraph (D)''.
                (31) Section 993(c)(2) of the Internal Revenue Code of 1986
            (26 U.S.C. 993(c)(2)) is amended--
                        (A) in subparagraph (C), by adding ``or'' after the
                    comma;
                        (B) by striking subparagraph (D);
                        (C) by redesignating subparagraph (E) as
                    subparagraph (D); and
                        (D) by striking ``subparagraph (E)'' and inserting
                    ``subparagraph (D)''.
                (32) Section 254(e)(3) of the Energy Policy and
            Conservation Act (42 U.S.C. 6274(e)(3)) is amended by striking
            ``12 of the Export Administration Act of 1979'' and inserting
            ``602 of the Export Administration Act of 2001''.
                (33) Section 721(f)(4)(A) of the Defense Production Act of
            1950 (50 U.S.C. App. 2170(f)(4)(A)) is amended--
                        (A) in clause (i), by striking ``6(j) of the Export
                    Administration Act of 1979'' and inserting ``310 of the
                    Export Administration Act of 2001'';
                        (B) in clause (ii), by striking ``section 6(l) of
                    the Export Administration Act of 1979'' and inserting
                    ``the Export Administration Act of 2001''; and
                        (C) in clause (iii), by striking ``section 6(m) of
                    the Export Administration Act of 1979'' and inserting
                    ``the Export Administration Act of 2001''.
                (34) Section 275 of the National Defense Authorization Act
            for Fiscal Years 1988 and 1989 (15 U.S.C. 4605) is amended by
            striking ``1979 (50 U.S.C. App. 2401 et seq.)'' and inserting
            ``2001''.
                (35) Section 1605(a)(7)(A) of title 28, United States Code,
            is amended by striking ``section 6(j) of the Export
            Administration Act of 1979 (50 U.S.C. App. 2405(j))'' and
            inserting ``section 310 of the Export Administration Act of
            2001''.
                (36) Section 1621(a) of the International Financial
            Institutions Act (22 U.S.C. 262p-4q(a)) is amended by striking
            ``section 6(j) of the Export Administration Act of 1979 (50
            U.S.C. App. 2405(j))'' and inserting ``section 310 of the
            Export Administration Act of 2001''.
                (37) Subsection (f) of section 491 and section 499 of the
            Forest Resources Conservation and Shortage Relief Act of 1990
            (16 U.S.C. 620c(f) and 620j) are repealed.
                (38) Section 904(2)(B) of the Trade Sanctions Reform and
            Export Enhancement Act of 2000 (22 U.S.C. 7203) is amended by
            striking ``Export Administration Act of 1979'' and inserting
            ``Export Administration Act of 2001''.
                (39) Section 983(i)(2) of title 18, United States Code (as
            added by Public Law 106-185), is amended--
                        (A) by striking the ``or'' at the end of
                    subparagraph (D);
                        (B) by striking the period at the end of
                    subparagraph (E) and inserting ``; or''; and
                        (C) by inserting after subparagraph (E) the
                    following new subparagraph:
                        ``(F) the Export Administration Act of 2001.''.
        (j) Civil Aircraft Equipment.--Notwithstanding any other provision
    of law, any product that--
                (1) is standard equipment, certified by the Federal
            Aviation Administration, in civil aircraft, and
                (2) is an integral part of such aircraft, shall be subject
            to export control only under this Act. Such product shall not
            be subject to controls under section 38(b)(2) of the Arms
            Export Control Act (22 U.S.C. 2778(b)).
        (k) Repeal of Certain Export Controls.--Subtitle B of title XII of
    division A of the National Defense Authorization Act for Fiscal Year
    1998 (50 U.S.C. App. 2404 note) is repealed.

    SEC. 808. 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, the Export Administration Act of
            1979, or the International Emergency Economic Powers Act when
            invoked to maintain and continue the Export Administration
            regulations, or
                (2) those provisions of the Arms Export Control Act which
            are amended by section 702,
    and are in effect on the date of enactment of this Act, shall continue
    in effect according to their terms until modified, superseded, set
    aside, or revoked under this Act or the Arms Export Control Act.
        (b) Administrative and Judicial Proceedings.--
                (1) Export administration act.--This Act shall not affect
            any administrative or judicial proceedings commenced or any
            application for a license made, under the Export Administration
            Act of 1979 or pursuant to Executive Order 12924, which is
            pending at the time this Act 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 Act shall not affect any
            administrative or judicial proceeding commenced or any
            application for a license made, under those provisions of the
            Arms Export Control Act which are amended by section 702, if
            such proceeding or application is pending at the time this Act
            takes effect. Any such proceeding, and any action on such
            application, shall continue under those provisions as if those
            provisions had not been amended by section 702.
        (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, or Executive Order 12924, that
    is in effect on the day before the date of enactment of this Act,
    shall, for purposes of this title or any other provision of law, be
    deemed to be made under section 310 of this Act until superseded by a
    determination under such section 310.
        (d) Lawful Intelligence Activities.--The prohibitions otherwise
    applicable under this Act do not apply with respect to any transaction
    subject to the reporting requirements of title V of the National
    Security Act of 1947. Notwithstanding any other provision of this Act,
    nothing shall affect the responsibilities and authorities of the
    Director of Central Intelligence under section 103 of the National
    Security Act of 1947.
        (e) Implementation.--The Secretary shall make any revisions to the
    Export Administration regulations required by this Act no later than
    180 days after the date of enactment of this Act.

                             Background and Purpose

        The bill, H.R. 2581, the ``Export Administration Act of
    2001'' provides a modern, comprehensive framework for the
    control of United States exports of goods and services with
    both civilian and military applications. It replaces the
    expired Export Administration Act of 1979, designed decades ago
    to limit the military capabilities of the now defunct Soviet
    Union and its Warsaw Pact allies in cooperation with the
    Coordinating Committee on Multilateral Export Controls (CoCom).
    In 1994, CoCom, a system under which the United States or any
    other country could exercise a unilateral veto over dual-use
    exports, expired. A replacement regime, the Wassenaar
    Arrangement, was formed 2 years later, but it permits only
    post-export notifications of sales of controlled items by its
    member countries.
        Since the U.S. is no longer the sole supplier of many, if
    not most, dual-use technologies, the need for a common approach
    among supplier countries is, in the Committee's view, all the
    more essential for their effective monitoring and control. The
    Committee strongly endorses Administration efforts to
    strengthen existing multilateral regimes and to promote more
    timely information-sharing, including the creation of new
    mechanisms in the Waasenaar Arrangement providing for a ``no
    undercut'' policy, a common standard for enforcement, and
    greater attention to end users connected with terrorist
    activities and those countries which are determined to be
    harboring or otherwise assisting terrorists.
        The reform legislation, H.R. 2581, incorporates a number of
    these multilateral export control objectives. It seeks to
    balance competing U.S. national security and economic interests
    by ensuring that appropriate controls are placed on the export
    of dual-use goods, services, and technologies to limit the
    military potential of countries threatening the U.S. or its
    allies, deter international terrorism and impede the
    proliferation of weapons of mass destruction. The legislation
    seeks to ensure global U.S. economic leadership and to
    establish principles for the use of effective U.S. economic
    sanctions. As is the case with current law, H.R. 2581 is also
    designed to promote U.S. foreign policy interests in promoting
    peace stability and respect for human rights.
        The bill consists of seven titles as follows: general
    authority; national security export controls; foreign policy
    export controls; procedures for export licenses and interagency
    dispute resolution; international arrangements; foreign
    boycotts; sanctions and enforcement; export control authority
    and regulations; and miscellaneous provisions.
        Since the Export Administration Act expired on August 20,
    1994, the President has continued export controls pursuant to
    his authority under the International Emergency Economic Powers
    Act (IEPPA). However, in light of the fact that IEPPA is not a
    satisfactory framework for indefinitely maintaining export
    controls in place of the Export Administration Act, the
    Congress passed a 1-year extension of this Act through August
    20, 2001.
        As introduced, H.R. 2581 is virtually identical to S. 149,
    a measure which passed the Senate on September 6 by a vote of
    85 to 14. Unlike the Senate version, however, this bill does
    include two sections amending the North Korean Threat Reduction
    Act of 1999 which passed the House by a vote of 374 to 6 in the
    106th Congress. These provisions are intended to ensure that
    Congress will be fully involved in the decision our nation may
    have to make in several years whether to transfer to North
    Korea of key components for the two light water reactors that
    are being built in North Korea pursuant to the 1994 Agreed
    Framework with that country.
        Mindful of the need to discharge its responsibilities and
    move ahead with the consideration of a bill reforming the
    export control system, the Committee agreed to use H.R. 2581 as
    base text, not as any blanket endorsement of all of its
    provisions, but as the most expedient vehicle to which a number
    of comprehensive amendments could be offered.
        Nonetheless, the Committee recognizes that the current
    political and economic environment facing the U.S. demands new
    approaches to export controls. The increasingly integrated
    global economy presents competitive challenges to many U.S.
    comapnies, including even high-technology firms. Many items of
    comparable quality and price are often manufactured by rival
    firms in foreign countries that do not control their exports as
    strictly as does the United States.
        In the course of Committee hearings on export control
    issues, the argument was frequently advanced that if an item or
    technology cannot be controlled multilaterally it is self-
    defeating for the U.S. to impose unilateral controls that will
    not prevent countries of concern from obtaining these items.
        When the item or product is of comparable quality and the
    Executive Branch has been unable to convince the foreign
    country to control the item, then full consideration should be
    given to removing the item from the control list through a
    ``foreign availability'' exemption. Industry advocates argue
    that, in administering any export control regime, the Secretary
    of Commerce should apply foreign availability determinations
    broadly to exempt items from licensing and should also seek to
    exempt those items available in ``mass market'' quantities and
    distribution channels.
        While H.R. 2581 fully reflects these concerns, the
    Committee believes that the President ought to have as much
    flexibility as possible to maintain export controls on an item
    even if it is determined to be available from a foreign
    supplier. The Committee believes, moreover, that faster and
    more efficient processing of export license applications and
    the maintenance of strict time limits for their review are more
    productive ways to level the playing field for American high-
    technology exporters than the decontrol of broad categories of
    of dual use items or products.
        In general, the amendments offered at the Committee were
    intended to increase the President's flexibility to impose
    export controls, designate certain types of goods and services
    as requiring heightened scrutiny, and increasing the
    involvement of the Secretary of State, the Secretary of Defense
    and the intelligence agencies in making certain decisions
    required by the Act. In addition, certain controls related to
    U.S. foreign policy and potentially dangerous goods and
    practices were also offered and adopted.
        Review of the detail of some these amendments is
    instructive. One of the amendments adopted by the Committee
    provides the President with additional flexibility to place
    items of concern on the national security control list and to
    control their export notwithstanding other decontrol mandates
    in the bill. In the view of the Committee, this amendment is
    important to our heightened efforts to combat terrorist and
    proliferation-related threats facing the U.S., such as bio-
    terrorism.
        Another amendment adopted by the Committee strengthens
    multilateral cooperation to stem the proliferation of weapons
    of mass destruction. It provides the statutory basis for the
    administration to keep in place the Enhanced Proliferation
    Control Initiative, EPCI, against the export of any item for a
    program or activity of an end use or end user that is directly
    involved in the development of weapons of mass destruction or
    the means to deliver them.
        The amendment also ensures the harmonization of standards
    and policies for other similar nonproliferation regimes put in
    place by our trading partners; increases the transparency of
    the EPCI process; and under certain circumstances provides for
    the presumption of denial for items to end users seeking to
    produce weapons of mass destruction or the means to deliver
    them. A separate amendment adopted by the Committee established
    a presumption of denial regarding the export of items that
    would either undermine regional stability or otherwise prove
    detrimental to the national security of the United States, a
    NATO ally or major non-NATO ally.
        Another en bloc amendment adopted by the Committee places
    additional safeguards on the export of specific torture
    products as well as the export of experimental medicine and
    other test articles for human experimentation. Section 6(n) of
    the Export Administration Act of 1979 and existing export
    regulations require licenses for the export of crime control
    equipment generally, with the exception for equipment that is
    sold to NATO members, Japan, Australia, New Zealand or other
    countries designated by the President. The new section of the
    bill created by this amendment would continue this requirement
    and general exception from licensing. However, it would also
    ensure that crime control equipment that is ``especially
    susceptible to abuse'' would not go to countries that
    repeatedly engage in torture, unless the Secretary, with the
    concurrence of the Secretary of State, determines that the end
    user of the equipment proposed for export has not been found to
    be engaged in torture.
        The same en bloc amendment also included several other
    provisions addressing the problem of under-regulated clinical
    trials of experimental drugs and other test articles on human
    participants in foreign countries. Specifically, the amendment
    would prohibit the unlicenced export of test articles which are
    intended for clinical investigations and establishes criteria
    under which the President may grant licenses for these exports.
        In December 2000, The Washington Post published a six-part
    series of investigative articles which described the abuses of
    United States-based pharmaceutical companies in the testing of
    experimental drugs. Four months later, the National Bioethics
    Advisory Commission (``NBAC'') presented to the President a
    report, entitled ``Ethical and Policy Issues in International
    Research: Clinical Trials in Developing Countries,'' which
    discussed the ethical issues generated by research on human
    participants in developing countries and recommended ways to
    ensure their health and safety.
        Thus, the section helps guarantee that researchers of test
    articles who conduct trials on human participants outside the
    United States abide by the same standards of voluntary informed
    consent and ethically sound research protocols which apply for
    similar investigations inside the United States.
        Another amendment, adding a new section (Section 313),
    addresses the difficult issue of the uncontrolled international
    export of large quantities of pesticides and related chemicals.
    As a unique class of man-made compounds designed to be harmful
    to life, pesticides pose a potentially serious risk to human
    health and environmental safety. Moreover, the United States
    has yet to adopt stringent controls over pesticide exports.
        The Committee, therefore, adopted an amendment providing
    the President with the authority he needs to prohibit the
    export of certain pesticides and chemicals should he deem them
    a threat to human health, public safety or the environment. The
    amendment also requires a number of studies from the President
    and the GAO concerning current exports of chemicals and
    pesticides, the existing regulatory system for monitoring,
    managing and controlling the export of these substances and
    recommendations for how to improve the United States regulatory
    framework.
        H.R. 2581, as amended, would also give the President more
    flexibility in identifying items to be included on the National
    Security Control List and in setting aside Department of
    Commerce decisions to decontrol an item. It is the view of the
    Committee that the Congress should not, on the one hand,
    delegate its constitutional authority to regulate commerce and
    control exports and, on the other, proscribe the President from
    identifying and controlling items of concern on a key control
    list in the face of unforseen threats, including acts of
    terrorism, from outside or inside the U.S.
        As amended, H.R. 2581 also restores jurisdiction to the
    Commerce Department over the licensing of commercial
    communications satellites with certain conditions; ensures that
    the Departments of State and Defense play a role in the
    consideration of classification requests for items on the
    control list; and further strengthens the post shipment
    verification provisions in the bill ensuring better monitoring
    of the actual use of items licenses by the Bureau of Export
    Administration.

                        RESPONDING TO TERRORIST THREATS

        Controls of dual use exports, including transfers to
    foreign nationals within the United States, have taken on a
    much greater importance since the events of September 11, 2001.
    Foreign terrorist organizations have targeted U.S. civilians
    and bioterrorists have attacked the Majority Leader of the
    Senate, a number of influential media outlets, and the
    facilities of the U.S. Postal Service.
        Press reports suggest that certain chemical additives and
    sophisticated, yet perhaps widely available, machinery was used
    to produce the particularly dangerous anthrax delivered to the
    offices of Senator Daschle. Even if the Al-Qaeda terrorist
    network is not directly implicated in the effort to send
    anthrax-laden letters through the U.S. postal service, the
    Committee believes that greater scrutiny must be directed to
    controlling items of interest to terrorists, terrorist
    organizations, and the countries that sponsor them.
        As detailed below, the Committee's amendment makes a number
    of improvements to H.R. 2581, as introduced, to address these
    concerns. For example, H.R. 2581, as inroduced, does not
    provide any specific authority to control exports to terrorists
    or terrorist organizations that are not related to weapons of
    mass destruction or the means to deliver them if such
    terrorists or terrorist organizations are not located in
    countries that are designated as state sponsors of terrorism.
    As we have learned, foreign terrorist organizations have front
    organizations or cells in a large number of countries, not just
    countries whose governments have been designated as state
    sponsors of terrorism.
        The Committee's amendment addresses these problems in
    several ways. First, it establishes a presumption of denial on
    any item if the Secretaries of Commerce, State and Defense
    agree that there is a significant risk that the export of such
    item would prove detrimental to the national security of the
    United States, a NATO ally, or major non-NATO ally.
    Presumptions of denial are also established, for example, (1)
    if there is a significant risk that the end user is involved in
    a program or activity for the design, development, manufacture,
    stockpiling, testing or other acquisition of WMD and the means
    to deliver them and is not in an adherent to a multilateral
    export control regime controlling such weapon, unless the item
    would not make a material contribution to such program; or (2)
    if such item would likely be used or diverted to a use or
    destination not authorized by the license or United States
    policy. The President is also provided authority to place items
    on the National Security Control List, irrespective of what
    disagreements may exist over such items among the relevant
    agencies.

                                    Hearings

        The Committee would note that H.R. 2581 was ordered
    reported prior to the events of September 11, 2001, and that
    additional modifications might well be necessary to this bill
    to ensure that U.S. export laws are adequate to combat the
    threat to our national security posed by terrorists. The
    Committee will seek to ensure those modifications are made as
    the bill moves forward in the legislation process.
        On May 23, June 12, and July 11, 2001, the Committee held
    hearings on ``The Export Administration Act: The Case for Its
    Renewal.'' On May 23, the Committee heard testimony from the
    Undersecretary of Commerce for Export Administration, Kenneth
    I. Juster. On June 12, the Committee took testimony from
    Senators Phil Gramm (R-Texas) and Fred Thompson (R-Tennessee);
    Representative Chris Cox (R-California); Richard T. Cupitt, the
    Associate Director for the Center for International Trade and
    Security at the University of Georgia; Paul Freedenberg, the
    Director of Government Relations for the Association of
    Manufacturing Technology; and Dan Hoydish, the Washington
    Director for UNISYS representing the Computer Coalition for
    Responsible Exports. On July 11, the Committee heard from
    Senator Mike Enzi (R-Wyoming); the Honorable John R. Bolton,
    the Under Secretary for Arms Control and International Security
    at the U.S. Department of State; Mr. David Tarbell, the Deputy
    Under Secretary for Technology Security Policy at the
    Department of Defense; Mr. Stephen Bryen, the Managing Partner
    for Aurora Marketing and Business Development; and Larry
    Christensen, the Vice President of Vastera, Inc.

                            Committee Consideration

        H.R. 2581 was introduced by Representative Gilman on July
    20, 2001, and was referred, having primary jurisdiction, to the
    House Committee on International Relations. It was also
    referred to the Committee on Rules.
        On August 1, 2001, the Committee met in open session and
    ordered favorably reported the bill H.R. 2581, with an
    amendment, by a record vote of 26 ayes to 7 noes, a quorum
    being present.
        The Committee adopted six amendments. The first was offered
    by Chairman Hyde. This amendment provides additional
    flexibility and discretion to the President by enhancing his
    authority with regard to controlling items on and the
    composition of the National Security Control List. This
    amendment was agreed to by a record vote of 29 ayes to 5 noes.
    The second amendment, an en bloc amendment offered by Mr.
    Lantos, expands purposes of foreign policy controls to govern
    the export of test articles intended for clinical investigation
    involving human subjects and requires a license for such
    exports, which must include proof that the clinical
    investigation abroad must meet the same standards as an
    investigation that took place in the United States. The en bloc
    amendment also amends section 311 (on export control policy
    regarding crime control and detection instruments and
    equipment) to restrict export of such devices to countries that
    engage in torture. This amendment was agreed to by a record
    vote of 25 ayes to 8 noes.
        Chairman Hyde offered the third amendment, an amendment
    which codifies the Enhanced Proliferation Control Initiative
    (EPCI) standard and requires presumption of denial for exports
    that meet EPCI-type standard as well as those exports that
    would undermine regional stability or are detrimental to the
    U.S. and its allies. This amendment was agreed to by a record
    vote of 30 ayes to 7 noes.
        The fourth amendment adopted was offered by Mr. Berman.
    This amendment added a title to the bill, ``Exports of
    Satellites.'' This amendment was agreed to by voice vote. The
    next amendment adopted was offered by Chairman Hyde and was
    agreed to by voice vote. This amendment enhances the role of
    the Secretary of Defense in the commodity classification
    process, and provides additional flexibility to the Executive
    branch in prescribing the interagency dispute resolution
    process for license applications. The final amendment adopted
    was an amendment en bloc offered by Chairman Hyde. This
    amendment was agreed to by voice vote.
        The motion to favorably report H.R. 2581 to the House, as
    amended, was agreed to by a record vote of 26 ayes to 7 noes.

                             Votes of the Committee

        Clause (3)(b) of rule XIII of the Rules of the House of
    Representatives requires that the results of each record vote
    on an amendment or motion to report, together with the names of
    those voting for or against, be printed in the committee
    report.
        Vote #1: Chairman Hyde amendment providing additional
    flexibility and discretion to the President by enhancing his
    authority with regard to controlling items on and the
    composition of the National Security Control List. The
    amendment was agreed to by a record vote of 29 ayes to 5 noes.
        Voting yes: Hyde, Gilman, Leach, Bereuter, Smith (NJ),
    Burton, Ballenger, Rohrabacher, Royce, Chabot, Houghton,
    McHugh, Smith (MI), Pitts, Issa, Cantor, Kerns, Davis (VA),
    Lantos, Berman, Hilliard, Sherman, Meeks, Lee, Crowley,
    Berkley, Napolitano, Schiff, and Watson.
        Voting no: Paul, Flake, Payne, Menendez, Blumenauer.
        Vote #2: The Lantos en bloc amendment expanding purposes of
    foreign policy controls to govern the export of test articles
    intended for clinical investigation involving human subjects
    and requires a license for such exports, which must include
    proof that the clinical investigation abroad must meet the
    standards as an investigation that took place in the United
    States. It also amends section 311 (on export control policy
    regarding crime control and detection instruments and
    equipment) to restrict export of such devices to countries that
    engage in torture. This amendment was agreed to by a record
    vote of 25 ayes to 8 noes.
        Voting yes: Hyde, Gilman, Leach, Bereuter, Smith (NJ),
    Burton, Ballenger, Rohrabacher, Royce, Chabot, Tancredo, Pitts,
    Davis (VA), Lantos, Ackerman, Payne, Hilliard, Engel, Meeks,
    Lee, Hoeffel, Berkley, Napolitano, Schiff, and Watson.
        Voting no: Houghton, Cooksey, Paul, Smith (MI), Issa,
    Cantor, Flake, and Kerns.
        Vote #3: Chairman Hyde amendment which codifies the
    Enhanced Proliferation Control Initiative (EPCI) standard and
    requires presumption of denial for exports that meet EPCI-type
    standard as well as those exports that would undermine regional
    stability or are detrimental to the U.S. and its allies. This
    amendment was agreed to by a record vote of 30 ayes to 7 noes.
        Voting yes: Hyde, Gilman, Leach, Bereuter, Smith (NJ),
    Burton, Gallegly, Ballenger, Rohrabacher, Royce, Chabot, Burr,
    Tancredo, Pitts, Kerns, Davis (VA), Lantos, Berman, Ackerman,
    Brown, Hilliard, Engel, Meeks, Lee, Crowley, Hoeffel, Berkley,
    Napolitano, Schiff, and Watson.
        Voting no: Houghton, Paul, Smith (MI), Flake, Payne,
    Menendez, and Blumenauer.
        Vote #4: Motion to favorably report to the House H.R. 2581,
    as amended. Agreed to by a vote of 26 ayes to 7 noes.
        Voting yes: Hyde, Gilman, Leach, Bereuter, Smith (NJ),
    Gallegly, Ros-Lehtinen, Rohrabacher, Royce, Chabot, McHugh,
    Cantor, Kerns, Davis (VA), Lantos, Ackerman, Brown, Hilliard,
    Sherman, Davis (FL), Lee, Crowley, Hoeffel, Berkley,
    Napolitano, and Watson.
        Voting no: Houghton, Burr, Cooksey, Paul, Issa, Flake, and
    Menendez.

                          Committee Oversight Findings

        In compliance with clause 3(c)(1) of rule XIII 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.

                   New Budget Authority and Tax Expenditures

        Clause 3(c)(2) of House Rule XIII is inapplicable because
    this legislation does not provide new budgetary authority or
    increased tax expenditures.

                   Congressional Budget Office Cost Estimates

                                         U.S. Congress,
                                   Congressional Budget Office,
                                    Washington, DC, September 21, 2001.
    Hon. Henry J. Hyde, Chairman,
    Committee on International Relations,
    House of Representatives, Washington, DC.
        Dear Mr. Chairman: The Congressional Budget Office has
    prepared the enclosed cost estimate for H.R. 2581, the Export
    Administration Act of 2001.
        If you wish further details on this estimate, we will be
    pleased to provide them. The CBO staff contacts are Ken Johnson
    (for federal costs), who can be reached at 226-2860, and
    Theresa Gullo (for the state and local impact), who can be
    reached at 225-3220.
                Sincerely,
                                      Dan L. Crippen, Director.

    Enclosure:

    cc:
            Honorable Tom Lantos
            Ranking Democratic Member
    H.R. 2581--Export Administration Act of 2001.

                                    Summary

        H.R. 2581 would replace the expired Export Administration
    Act of 1979 (EAA) and would update the system for applying
    export controls and penalties on American business for national
    security or foreign policy purposes. Since the expiration of
    the EAA in August, 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 administers export controls. This
    bill would authorize such activities through 2005.
        CBO estimates that implementing H.R. 2581 would cost about
    $370 million over the 2002-2006 period, assuming appropriation
    of the necessary funds. Because the bill would increase
    criminal and civil penalties for violations of export controls,
    CBO estimates governmental receipts would increase by $11
    million over the 2002-2006 period. CBO estimates that the
    increase in criminal penalties would cause direct spending from
    the Crime Victims Fund to rise by about $4 million during that
    period. Because the bill would affect direct spending and
    receipts, pay-as-you-go procedures would apply.
        H.R. 2581 contains no intergovernmental mandates as defined
    in the Unfunded Mandates Reform Act (UMRA) and would impose no
    costs on state, local, or tribal governments. CBO's estimate of
    the bill's impact on the private sector will be provided later
    in a separate statement.

                    ESTIMATED COST TO THE FEDERAL GOVERNMENT

        The estimated budgetary impact of the bill is shown in the
    following table. The costs of this legislation fall within
    budget function 370 (commerce and housing credit), 050
    (national defense), and 150 (international affairs).

                                         By fiscal year, in millions of dollars
    ----------------------------------------------------------------------------------------------------------------
                                                                           2002     2003     2004     2005     2006
    ----------------------------------------------------------------------------------------------------------------
    CHANGES IN REVENUES AND DIRECT SPENDING
    Estimated Revenues                                                         0        1        2        4        4

    Estimated Budget Authority                                                 0        0        1        1        2
    Estimated Outlays                                                          0        0        1        1        2

    CHANGES IN SPENDING SUBJECT TO APPROPRIATION
    EAA Spending by the
    Bureau of Export Administration
      Estimated Authorization Level                                           94       87       90       95        0
      Estimated Outlays                                                       80       83       90       94       14

    EAA Spending by the
    Departments of State and Defense
      Estimated Authorization Level                                            2        2        2        2        0
      Estimated Outlays                                                        2        2        2        2        0

    Total Proposed Changes
      Estimated Authorization Level                                           96       89       92       97        0
      Estimated Outlays                                                       82       85       92       96       14
    ----------------------------------------------------------------------------------------------------------------

                               BASIS OF ESTIMATE

        H.R. 2581 would authorize the BXA to control the export of
    certain items from the United States for national security or
    foreign policy purposes. Generally, export controls would not
    apply to products that are mass-market items or available from
    foreign sources at a comparable price and quality. When fully
    phased in, CBO estimates that provisions of the Export
    Administration Act of 2001 would increase revenues by about $4
    million a year beginning in fiscal year 2005 and direct
    spending by about $2 million a year beginning in 2006. In
    addition, we estimate that implementing the bill would cost
    $369 million over the 2002-2006 period, assuming appropriation
    of the necessary amounts.
    Revenues
        Since the expiration of the Export Administration Act of
    1979 in August, criminal and civil penalties for violating
    export control laws have been collected under the International
    Economic Emergency Powers Act. H.R. 2581 would significantly
    raise the maximum criminal fines that could be imposed for
    violations of export controls. The bill would set the maximum
    criminal fines at 10 times the value of the exports involved,
    or $5 million for corporations and $1 million for individuals,
    whichever is greater. Under the bill, civil penalties of up to
    $500,000 could also be imposed for violations of the law. On
    average, about three years elapse between the initial
    investigation of violations of export control law and the
    collection of a penalty. Because the amount of a fine is based
    on the law in force at the start of an investigation, CBO does
    not expect penalties under the new law to be collected until
    fiscal year 2003. Based on information from the Department of
    Commerce, CBO estimates that enacting the bill would increase
    receipts from civil penalties by $2 million a year and receipts
    from criminal penalties by another $2 million a year beginning
    in 2005.
    Direct Spending
        Collections of criminal fines are recorded in the budget as
    governmental receipts (i.e., revenues), which are deposited in
    the Crime Victims Fund and spent in subsequent years. When
    fully phased in, the additional direct spending resulting from
    the increase in criminal penalties would be about $2 million a
    year beginning in 2006, because spending from the Crime Victims
    Fund lags behind the collection of criminal fines by about a
    year.
    Spending Subject to Appropriation
        BXA is responsible for implementing the EAA. Based on
    information from the Department of Commerce, CBO estimates
    that, with current funding, the BXA will spend about $52
    million in 2001 on this effort. H.R. 2581 would authorize the
    appropriation of between $72 million and $76 million a year for
    the Department of Commerce to implement the provisions of the
    bill during the 2002-2005 period. Also, the bill would
    authorize additional appropriations of at least $3.5 million
    annually to hire 20 employees to establish a best practices
    program for exporters, at least $4.5 million annually to hire
    10 overseas investigators, $5 million to enhance the BXA's
    program to verify the end use of controlled exports, at least
    $5 million to procure a computer system for export licensing
    and enforcement, and $4 million annually to hire and train
    additional license review officers.
        Based on information from the BXA, CBO estimates that
    implementing a best practices program for exporters would cost
    about $4 million a year, stationing overseas investigators
    would cost about $5 million a year, hiring and training license
    review officers would cost $4 million a year, and procuring the
    computer system would cost about $4 million in 2002 and $1
    million in 2003. Any such spending would be subject to
    appropriation of the necessary amounts. Based on BXA's
    historical spending patterns, CBO estimates that implementing
    the bill would cost the agency about $361 million over the
    2002-2006 period. This estimate assumes that funds are
    appropriated for the BXA through 2005, as provided in section
    506 of the bill.
        H.R. 2581 also would require the Departments of State and
    Defense to review the classification of exports under the new
    rules established by the bill, and make recommendations to the
    Department of Commerce. Based on information from the
    Departments of State and Defense, CBO assumes that those two
    agencies would need to hire additional staff to conduct these
    reviews. CBO estimates that implementing these provisions would
    cost about $2 million a year during the 2002-2005 period.

                          PAY-AS-YOU-GO CONSIDERATIONS

        The Balanced Budget and Emergency Deficit Control Act
    establishes pay-as-you-go procedures for legislation affecting
    direct spending or receipts. The net changes in outlays and
    governmental receipts that are subject to pay-as-you-go
    procedures are shown in the following table. For the purposes
    of enforcing pay-as-you-go procedures, only the effects in the
    current year, the budget year, and the succeeding four years
    are counted.

                                                             By fiscal year, in millions of dollars
    --------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                       2001    2002    2003    2004    2005    2006    2007    2008    2009    2010    2011
    --------------------------------------------------------------------------------------------------------------------------------------------------------
    Changes in outlays                                                     0       0       0       1       1       2       2       2       2       2       2
    Changes in receipts                                                    0       0       1       2       4       4       4       4       4       4       4
    --------------------------------------------------------------------------------------------------------------------------------------------------------

            ESTIMATED IMPACT ON STATE, LOCAL, AND TRIBAL GOVERNMENTS

        H.R. 2581 contains no intergovernmental mandates as defined
    in UMRA and would impose no costs on state, local, or tribal
    governments.

                     ESTIMATED IMPACT ON THE PRIVATE SECTOR

        CBO's estimate of the bill's impact on the private sector
    will be provided later in a separate statement.

                             PREVIOUS CBO ESTIMATE

        On April 2, 2001, CBO transmitted an estimate of S. 149,
    the Export Administration Act of 2001, as ordered reported by
    the Senate Committee on Banking, Housing, and Urban Affairs on
    March 22, 2001. Based on information from the Bureau of Export
    Administration, CBO estimated that enacting S. 149 would
    increase penalty collections by $8 million a year when fully
    phased in. Since that time, CBO has obtained new information
    from BXA, and now estimates that enacting either bill would
    increase penalty collections by $4 million a year when fully
    phased in.
        CBO also estimated that implementing S. 149 would cost BXA
    about $377 million over the 2001-2006 period, assuming the
    appropriation of the necessary amounts. For that estimate, CBO
    assumed that Congress would enact the bill by July 1, 2001, and
    that some of the ongoing costs of the bill would begin in 2001.
    For CBO's estimate of H.R. 2581, we assume that the bill would
    have no budgetary effect until 2002. This decrease in the
    estimated costs, however, is partially offset by CBO's estimate
    of the added costs for the Departments of State and Defense to
    implement the bill.

                             ESTIMATE PREPARED BY:

    Federal Costs: Ken Johnson (226-2860)
    Federal Receipts: Erin Whitaker (226-2720)
    Impact on State, Local, and Tribal Governments: Theresa Gullo
            (225-3220)

                             ESTIMATE APPROVED BY:

    Peter H. Fontaine
    Deputy Assistant Director for Budget Analysis

    G. Thomas Woodward
    Assistant Director for Tax Analysis

                                                       November 9, 2001
    H.R. 2581--Export Administration Act of 2001.

                                    Summary

        H.R. 2581 would impose private-sector mandates as defined
    by the Unfunded Mandates Reform Act (UMRA) on certain
    exporters. CBO estimates that the total direct cost of those
    mandates would fall below the annual threshold established by
    UMRA for private-sector mandates ($113 million in 2001,
    adjusted annually for inflation).

                 PRIVATE-SECTOR MANDATES CONTAINED IN THE BILL

        H.R. 2581 would replace the expired Export Administration
    Act of 1979 (EAA) and would update the system for applying
    export controls and penalties on American business for national
    security or foreign policy purposes.
        The bill would require pharmaceutical companies that apply
    for licenses to export certain test articles, including drugs,
    medical devices, biological products, and additives, to
    undertake new procedures. Such firms would have to identify
    each clinical investigation concerning those articles involving
    human subjects and submit proof that the protocols for each
    investigation have been examined by an institutional review
    board. Based on information from the Pharmaceutical Research
    and Manufacturers of America and the Federal Drug
    Administration, the cost to identify and submit proof of review
    would be small and further, few test articles would be subject
    to the new procedures.
        The bill would prohibit implements of torture from being
    exported to certain countries. According to the Bureau of
    Export Administration, the number of prohibited instruments and
    equipment would be minimal.
        H.R. 2581 also would require exporters not currently filing
    their applications through the Automated Export System (AES) to
    do so. Based on information from the Bureau of Export
    Administration, the number of additional exporters that would
    now be required to file through the AES would be minimal.

                             PREVIOUS CBO ESTIMATE

        On April 2, 2001, CBO transmitted an estimate of S. 149,
    the Export Administration Act of 2001, as ordered reported by
    the Senate Committee on Banking, Housing, and Urban Affairs on
    March 22, 2001. CBO determined that S. 149 contained no
    private-sector mandates as defined by UMRA.

                             ESTIMATE PREPARED BY:

    Paige Piper/Bach

                             ESTIMATE APPROVED BY:

    Roger Hitchner
    Assistant Director for Microeconomic and Financial Studies
            Division

                        Performance Goals and Objectives

        The performance goals and objectives of this bill are
    consistent with the Government Performance and Results Act
    performance plan submitted by the Department of Commerce.
    Because the bill's objectives are consistent with the
    performance plan submitted by the Department of Commerce new or
    additional performace goals and objectives are not required.

                       Constitutional Authority Statement

        Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
    House of Representatives, the Committee finds the authority for
    this legislation in article I, section 8, clause 18 of the
    Constitution.

                          Section-by-Section Analysis

    Section 1. Short title; table of contents
        Section 1 provides that the bill may be cited as the
    ``Export Administration Act of 2001,'' and provides a table of
    contents.
    Section 2. Definitions
        Section 2 defines the terms used in the Act.
    Section 101. Commerce control list
        Section 101(a) directs the Secretary of Commerce to
    establish and maintain a Commerce Control List consisting of
    items that require a license or other authorization prior to
    export and grants authority to require any type of license or
    other authorization to implement export controls under this
    Act. Section 101(b) specifies the types of licenses or other
    authorization that can be required for single or multiple
    exports, notification in lieu of a license, or an exception
    from licensing. Section 101(c) provides that no license or
    other authorization is required to provide after-market service
    or replacement parts, to replace on a one-for-one basis parts
    that were in an item lawfully exported from the United States,
    unless the Secretary determines that a license is required or
    the after-market service or replacement parts would materially
    enhance the capability of the item. Section 101(d) provides
    that a license or other authorization to export an item
    includes authorization to export incidental technology related
    to the item, so long as such technology does not go beyond that
    which would be necessary to install, repair, maintain, inspect,
    operate, or use the licensed item.
    Section 102. Delegation of authority
        Section 102 allows the President to delegate the authority
    granted to him under this Act to such departments and officials
    as he deems appropriate, except as provided in section 102(b)
    and subject to other provisions of this Act. Section 102(b)(1)
    limits this delegation to officials that are appointed by the
    President with the advice and consent of the Senate. Section
    102(b)(2) states that the President may not delegate or
    transfer his authority to overrule or modify recommendations or
    decisions made by the Secretaries of Commerce, Defense, or
    State.
    Section 103. Public information; consultation requirements
        Section 103 requires the Secretary of Commerce to keep the
    public fully informed of changes in export control policies and
    procedures and to consult regularly with representatives from a
    broad spectrum of enterprises, labor organizations, non-
    proliferation and national security experts, and interested
    citizens.
    Section 104. Right of export
        Section 104 affirms that no license or authorization may be
    required except to carry out the provisions of this Act.
    Section 105. Export control advisory committees
        Section 105 authorizes the Secretary of Commerce to appoint
    export advisory committees, made up of industry representatives
    and government officials (including officials from the
    Departments of Commerce, Defense, and State, and other
    appropriate departments or agencies), to provide technical
    advice and assistance to the Secretary and other appropriate
    officials or departments regarding actions designed to carry
    out the Act. Section 105 also provides the administrative
    arrangements that such committees must follow.
    Section 106. President's Technology Export Council
        Section 106 authorizes the President to establish a
    President's Technology Export Council to advise the President
    on the implementation, operation, and effectiveness of the Act.
    Section 107. Prohibition on charging fees
        Section 107 provides that no fee may be charged to process
    an export license application under the Act.
    Section 201. Authority for national security export controls
        Section 201 authorizes the President to control exports for
    national security purposes to stem contributions to the
    military capability of countries whose activities prove
    detrimental to the national security of the United States, its
    allies, or countries that share common strategic objectives
    with the United States.
        Section 201(c)(1)(A) authorizes export controls on items
    that, based on the end-use or end-user and without regard to
    any other requirement, exception or procedure mandated
    elsewhere in the Act, could contribute to the proliferation of
    weapons of mass destruction or the means to deliver them.
    Section 201(c)(1)(B) directs the President to seek to
    strengthen multilateral cooperation to identify more
    effectively end users of concern. Section 201(c)(1)(C) directs
    the Secretary to establish and maintain a database listing end
    users of concern and to develop a procedure by which exporters
    can utilize such database to screen prospective end users.
        Section 201(c)(2) states that there shall be a presumption
    of denial for the export of an item if the Secretary, with the
    concurrence of the Secretary of Defense and the Secretary of
    State, determines that there is a significant risk that (A) the
    end user designated to receive such item is involved in a
    program or activity for the design, development, manufacture,
    stockpiling, testing, or other acquisition of a weapon of mass
    destruction or the means to deliver such a weapon and is in a
    country that is not an adherent to a multilateral export
    control regime controlling such weapon or means of delivery,
    unless the Secretary, with the concurrence of the Secretary of
    Defense and the Secretary of State, and in consultation with
    the intelligence agencies and the head of any other department
    or agency of the United States that the Secretary considers
    appropriate, determines that such export would not make a
    material contribution to such program or activity or (B) the
    export of such item would otherwise contribute to the military
    capabilities of a country so as to undermine regional stability
    or otherwise prove detrimental to the national security of the
    United States, a NATO ally, or major non-NATO ally.
        The Committee believes that the decision to export an item
    to an end-user that is involved in WMD programs--especially
    end-users in countries that do not adhere to the relevant
    multilateral control regimes--should have to meet the highest
    standards of protection of U.S. security interests, and this
    subsection provides that there shall be a presumption of denial
    unless the item in question would make no material contribution
    to such a program. These are among the highest risk purchasers
    of U.S. dual-use goods and technology, in countries which
    choose not to cooperate with global efforts to halt the spread
    of nuclear, chemical, or biological weapons, or the spread of
    ballistic missile capabilities that could carry such weapons.
    These purchasers and states have chosen to remain outside the
    legitimate standards of international civilized behavior, and
    indeed to place international peace and security at risk; as
    such, neither of these purchasers or states should have any
    right or expectation to benefit from the legitimate trade in
    high-technology dual-use items.
        While this provision does not constitute a statutory
    prohibition on such exports, the Committee believes that it is
    desirable to give the Executive Branch clear guidance. This is
    intended as a ``fail-safe'' provision; if the Secretaries of
    Commerce, Defense and State first agree that there is a
    ``significant risk'' that the proposed purchaser is involved in
    WMD or missile programs, and the Secretaries fail to agree that
    said export would not make a material contribution to a WMD
    program or activity, then the Committee intends that export
    should not be approved. Each Secretary is responsible for
    different facets of the proliferation control problem, and each
    must be satisfied that a specific export in these circumstances
    would not undermine U.S. security interests.
        Section 201(d)(1) authorizes the President to impose
    enhanced controls on National Security Control List items,
    notwithstanding their status as incorporated parts or as mass-
    market or foreign-available items, if removing controls could
    constitute a threat to U.S. national security. Section
    201(d)(2) gives the President the necessary authority to,
    without regard to any other provision of the Act, to place
    items on the National Security Control List as he deems
    necessary. This does not replace the system for creating a
    National Security Control List in section 202, but is a
    separate authority for the President to add items to the list
    directly without going through the process in section 202 and
    other provisions in the Act. The Committee believes that there
    could be occasions, especially since the events of September
    11, that require making certain items immediately subject to
    EAA national security controls, without regard to a potentially
    time-consuming and possibly contentious interagency review
    process. Section 201(d)(3) states that the President may not
    delegate his authority under the previous two subsections.
    Section 201(d)(4) requires the President to report any enhanced
    control determination, along with the specific reason for the
    determination, to the committees of jurisdiction.
        Section 201(e)(1) states that when a license is required
    for export to any country of any item on the National Security
    Control List for any reasons specified in subsection (b), there
    shall be a presumption of denial for the export of such item if
    (1) there is a significant risk that such item would contribute
    to the nuclear, chemical, or biological weapons capability of
    such country or the capabilities of such country to deliver
    such weapons; (2) such item would otherwise contribute to the
    military capabilities of such country so as to undermine
    regional stability or otherwise prove detrimental to the
    national security of the United States, a NATO ally, or major
    non-NATO ally; (3) such item would likely be used or diverted
    to a use or destination not authorized by the license or United
    States policy; or (4) the export of such item would otherwise
    materially and adversely affect the national security interests
    of the United States. Section 201(e)(2) states the paragraph
    (1) shall not apply to the export of an item to a country that
    is an adherent to a multilateral export control regime
    controlling the export of such item.
        The Committee believes that certain National Security
    Control List items pose a higher risk of being used in WMD or
    missile programs, or of undermining regional security. These
    items should be subject to closer scrutiny during the export
    licensing process, particularly if they are or can be easily
    diverted to a use or destination not approved as part of the
    original license application. If it is determined that there is
    a significant risk that the export of such items could be used
    or diverted for use for such purposes, or could undermine U.S.
    national security interests, then there should be a presumption
    of denial for export. As in 201(c)(2), this is not intended as
    a statutory prohibition, but as clear guidance for the
    Executive Branch in its consideration of licenses for these
    types of exports. The Committee also believes that the
    Secretaries of State and Defense, in consultation with the
    intelligence agencies and any other department or agency the
    Secretary of Commerce deems appropriate, must be consulted with
    regard to decisions pertaining to the export of these items.
    The Committee decided to except countries that are adherents to
    multilateral control regimes that control such items, since
    those countries are obligated or otherwise committed to
    strictly control the use and security of such items.
    Section 202. National security control list
        Section 202 requires the Secretary of Commerce to establish
    and maintain a National Security Control List, composed of
    items controlled for national security purposes, as part of the
    Commerce Control List. Section 202(a)(3) directs the Secretary,
    with the concurrence of the Secretary of Defense, and the
    Secretary of State, and in consultation with other appropriate
    departments or agencies, to identify items for inclusion on the
    List, provided that the List shall include all of the items on
    the Commerce Control List on the day before the date of
    enactment of this Act. Section 202(a)(3) further requires the
    Secretary to review the List on a continuing basis, and, with
    the concurrence of the Secretary of Defense, and the Secretary
    of State, and in consultation with other appropriate
    departments or agencies, make adjustments to the List. Section
    202(b)(1) requires the Secretary to consider certain risk
    factors, weighing national security concerns and economic
    costs, in establishing and maintaining the List. Section
    202(b)(2) specifies the risk factors for the Secretary's
    consideration.
        The Committee believes that the Secretaries and State and
    Defense must have equal status with the Secretary of Commerce
    in determining which items are to be controlled on the National
    Security Control List. Both have unique responsibilities for
    safeguarding the national security interests of the United
    State; the Secretary of Defense for anticipating and defending
    against military threats to the U.S. and it allies, the
    Secretary of State as the leader in U.S. WMD nonproliferation
    efforts and security-related international treaty
    implementation and enforcement. The Department of State is also
    the lead agency in controlling the export of lethal military
    equipment generally.
    Section 203. Country tiers
        Section 203 directs the President to establish a country
    tiering system of not less than 3 tiers, and assign each
    country to an appropriate tier for each controlled item or
    group of items. Section 203(b) requires that countries
    representing the lowest risk of diversion or misuse of an item
    be assigned to the lowest tier, while those representing the
    highest risk of diversion or misuse be assigned to the highest
    tier. Section 203(c) provides a number of risk factors to be
    used by the President in making assessments of countries for
    tier assignment purposes. The Committee believes that it is
    critically important to take into consideration factors other
    than a country's current capabilities regarding WMD; the
    country's goals and intentions must be considered, as well. In
    addition, while participation in multilateral export control
    regimes is important, the extent to which the country actually
    implements export controls, according to its own laws,
    regulations and practices, should be a key consideration when
    making country tier assignments.
    Section 204. Incorporated parts and components
        Section 204(a) provides that controls may not be imposed on
    an item solely because the item incorporates parts or
    components that are controlled if the part or component is
    essential to the functioning of the item, is customarily
    included in sales of the item, and is valued at 25 percent or
    less of the total value of the item, unless the item itself
    would make a significant contribution to the military or
    proliferation potential of a country or end-user which would
    prove detrimental to U.S. national security, or unless failure
    to control the item would be contrary to controls imposed under
    section 201(c) or section 309. Section 204(b) provides that no
    authority may be required for the re-export of foreign-made
    items incorporating U.S.-controlled parts if the value of the
    U.S.-controlled parts is 25 percent or less of the total value
    of the item, except that controls may be imposed on reexports
    of items to countries designated as countries supporting
    international terrorism if the controlled U.S. content is
    greater than 10 percent of the total value of the item.
    Section 205. Petition process for modifying export status
        Section 205 directs the Secretary of Commerce to establish
    a process for interested persons to petition the Secretary to
    change the status of an item on the List.
    Section 211. Determination of foreign availability and mass-market
            status
        Section 211(a) directs the Secretary of Commerce to review
    and determine the foreign availability and mass-market status
    of an item on a continuing basis, upon a request from the
    Office of Technology Evaluation, or in response to a petition.
    Section 211(b) requires the Secretary to establish a process
    for interested parties to petition for a foreign availability
    or mass-market determination for an item. Section 211(c)
    provides that in any case in which the Secretary determines
    that an item has foreign availability or mass-market status, no
    license or other authorization shall be required for the export
    of such item, unless the President makes a set-aside
    determination under section 212 or 213. Section 211(d)
    establishes criteria for determining foreign availability and
    mass-market status, including by providing, consistent with
    current law that in order to be a directly competitive item or
    a substantially identical item for the purpose of making such a
    determination, an item must be of comparable quality to the
    controlled item.
    Section 212. Presidential set-aside of foreign availability status
            determination
        Section 212(a)(1) provides the President with non-delegable
    authority to set aside a foreign availability status
    determination if failing to control the item constitutes a
    threat to U.S. national security, if there is a high
    probability that the foreign availability will be eliminated
    through international negotiations, or if U.S. controls on the
    item have been imposed under section 309. Section 212(a)(2)
    requires the President to report any set-aside determination,
    along with the specific reason for the determination, to the
    committees of jurisdiction, and to publish the determination in
    the Federal Register.
        Section 212(b)(1) requires the President, if he has made a
    set-aside determination under section 212(a), to actively
    pursue negotiations with the governments of appropriate
    countries for the purposes of eliminating the foreign
    availability, and to notify the committees of jurisdiction of
    these negotiations. Section 212(b)(2) directs the President to
    review a set-aside determination under section 212(a) every six
    months. Section 212(b)(3) provides that except for a set-aside
    determination made under section 309, a set-aside determination
    shall cease to apply within 6 months if negotiations are never
    commenced, on the date that negotiations end without success,
    on the date the President determines there is not a high
    probability of eliminating foreign availability through
    negotiation, or within 18 months if the President has been
    unable to achieve agreement to eliminate foreign availability.
    Section 213. Presidential set-aside of mass-market status determination
        Section 213(a) provides the President with non-delegable
    authority to set aside a mass-market status determination if
    failing to control the item constitutes a serious threat to
    U.S. national security and controlling the item would advance
    U.S. national security interest, or if U.S. controls on the
    item have been imposed under section 309. Section 213(b)(1)
    requires the President to report any set-aside determination,
    along with the specific reason for the determination, to the
    committees of jurisdiction, and to publish the determination in
    the Federal Register. Section 213(b)(2) directs the President
    to review a set-aside determination under section 212(a) every
    six months.
    Section 214. Office of technology evaluation
        Section 214(a)(1) establishes within the Department of
    Commerce an Office of Technology Evaluation to gather,
    coordinate, and analyze all information necessary for the
    Secretary of Commerce to make foreign availability and mass-
    market status determinations under the Act. Section 214(a)(2)
    directs the Secretary to ensure that the Office includes
    persons with the training, expertise and experience in economic
    analysis, the defense industrial base, technological
    developments, national security, and foreign policy export
    controls to carry out the Office's responsibilities. Section
    214(b) directs the Office to conduct a number of assessments,
    evaluations, and monitoring functions. Section 214(c) requires
    the Secretary to make available to the committees of
    jurisdiction information on the Office's operations and
    improvements in ability to assess foreign availability and
    mass-market status. Section 214(d) directs departments and
    agencies and their contractors to furnish to the Office
    information about foreign availability and mass-market status
    of items.
    Section 301. Authority for foreign policy export controls
        Section 301 authorizes the President to control exports for
    the purposes of promoting foreign policy objectives; promoting
    peace, stability and respect for human rights; deterring and
    punishing acts of international terrorism; controlling the
    export of test articles intended for clinical investigation
    involving human subjects to foster public health and safety;
    and controlling the export of goods and substances which are
    banned, severely restricted, highly regulated or never
    regulated for use in the United States to foster public health
    and safety Section 301(c) prohibits controlling for foreign
    policy reasons the export from a foreign country of an item
    containing parts or components produced in the United States,
    unless the export is to a country designated as a country
    supporting international terrorism if the value of the
    controlled U.S. parts or components is greater than 10 percent
    of the total value of the item. Section 301(d) prohibits
    controlling the export of an item for foreign policy purposes
    if the export of such item is in performance of a binding
    contract or is under an already issued license, unless the
    export of such item would constitute a serious threat to a
    foreign policy interest of the United States and controls on
    that item will be instrumental in remedying the situation
    posing the threat. The Committee modified section 301(d)(1)(a)
    to make it clear that contracts for export of items upon which
    the President subsequently decides to impose controls would not
    be affected, provided they were concluded before the notice in
    the Federal Register or the President's report to Congress
    imposing the new controls, whichever occurs first. The
    Committee was concerned that the bill's existing language could
    have created a gap between an Administration's declaration to
    impose controls and the formal report to Congress, and such a
    gap would permit the hasty conclusion of a new contract that
    would then have to be honored.
    Section 302. Procedures for imposing controls
        Section 302 outlines procedures for the imposition of
    foreign policy export controls. Section 302(a) requires the
    President, not later than 45 days before imposing a foreign
    policy export control, to publish notice of intent to do so in
    the Federal Register and provide for a 30-day period for public
    comment. Section 302(b) authorizes the President to negotiate
    with the government of the foreign country against which the
    export control is imposed during the 45-day notice period.
    Section 302(c) directs the President to consult with the
    committees of jurisdiction regarding a proposed foreign policy
    control and efforts to achieve multilateral cooperation on the
    issues underlying the proposed control.
    Section 303. Criteria for foreign policy export controls
        Section 303 requires foreign policy export controls to have
    clearly stated and specific foreign policy objectives, to have
    objective standards for evaluation, to include certain
    assessments by the President, to be targeted narrowly, and to
    seek to minimize any adverse impact on humanitarian activities.
    Section 304. Presidential report before imposition of controls
        Section 304(a) directs the President to submit a report to
    the committees of jurisdiction prior to imposing a foreign
    policy export control. Section 304(b) details the contents of
    such report.
    Section 305. Imposition of controls
        Section 305 authorizes the President to impose a foreign
    policy export control after the submission of the report
    required under section 304 and notice of the imposition of the
    control is published in the Federal Register.
    Section 306. Deferral authority
        Section 306 authorizes the President to defer compliance
    with the requirements of sections 302(a), 304, or 305 if he
    determines that deferral is in the U.S. national interest and
    compliance occurs not later than 60 days after the foreign
    policy export control is imposed.
    Section 307. Review, renewal, and termination
        Section 307(a)(1) provides that foreign policy export
    controls shall terminate on March 31 of each renewal year,
    defined as 2003 and every two years thereafter, unless
    specifically renewed by the President. Section 307(a)(2)
    provides an exception for a foreign policy export control that
    is required by law, is targeted against a country designated as
    supporting international terrorism, or has been in effect for
    less than one year as of February 1 of a renewal year. Section
    307(b) requires the President to review all foreign policy
    export controls in effect and, during the review period,
    consult with the committees of jurisdiction and provide for a
    period of public comment on the renewal of each export control.
    Section 307(c) requires the President to submit to the
    committees of jurisdiction a report on each export control he
    wishes to renew.
    Section 308. Termination of controls under this title
        Section 308(a) requires the President to terminate any
    foreign policy export control that has substantially achieved
    the objective for which it was imposed, and authorizes him to
    terminate at any time any foreign policy export control that is
    not required by law 30 days after consulting with the
    International Relations Committee of the House of
    Representatives and the Foreign Relations Committee of the
    Senate. Section 308(b) provides an exception for foreign policy
    export controls imposed against countries designated as
    supporting international terrorism.
    Section 309. Compliance with international obligations
        Section 309 authorizes the President to control exports of
    items listed on the control list of a multilateral export
    regime, or in order to comply with resolutions of the United
    Nations, treaties, or other international agreements and
    arrangements.
    Section 310. Designation of countries supporting international
            terrorism
        Section 310(a) requires a license for the export of an item
    to a country if the Secretary of State has determined that the
    government of the country has repeatedly provided support for
    international terrorism, and the export of the item could make
    a significant contribution to the military potential of the
    country or its ability to support international terrorism.
    Section 310(b) requires the Secretaries of Commerce and State
    to notify the committees of jurisdiction at least 30 days
    before issuing a license under section 310(a). Section 310(c)
    requires the Secretary of State to publish each determination
    made under section 310(a) in the Federal Register. Section
    310(d) provides that a designation made under section 310(a)
    shall not be rescinded unless the President submits to the
    Speaker of the House of Representatives, and the Chairmen of
    the Committees on Banking, Housing, and Urban Affairs and on
    Foreign Relations of the Senate a report making certain
    certifications about the government of the designated country.
    Section 311. Crime control instruments
        Section 311 continues and expands existing export control
    law and regulations governing the export of crime control and
    detection equipment by ensuring that any such equipment that is
    ``especially susceptible to abuse as implements of torture''
    would not go to countries that repeatedly engage in torture.
    Subsection (a) restates existing law that all crime control and
    detection equipment shall be subject to an individual export
    license. Subsection (b) mandates that determinations made by
    the Secretary of Commerce in composing the list of crime
    control and detection equipment subject to controls, and the
    approval or denial for export of such equipment, will require
    the concurrence of the Secretary of State. Subsection (c)
    prohibits the export of such equipment that is especially
    susceptible to abuse for torture to countries or groups that
    have repeatedly engaged in acts of torture, unless the
    Secretaries of Commerce and State agree that the purchaser of
    the equipment has not been engaged in torture. Subsection (c)
    also requires the Secretary of Commerce to publish a list of
    crime control equipment designated as ``especially
    susceptible'' to abuse for the information of exporters.
    Subsection (d) excepts NATO and major non-NATO allies from the
    general licensing requirement of subsection (a); however,
    subsection (e) imposes a blanket prohibition on the export to
    any destination (including NATO and major non-NATO allies) of
    leg irons, saps, blackjacks, electroshock stun belts,
    thumbcuffs and items specifically designed as implements of
    torture, and components produced for incorporation into these
    items and the technology used for the development or production
    of these items. Finally, subsection (f) defines ``act of
    torture.''
        Amnesty International reports that governments that
    repeatedly engage in torture against detained persons
    frequently use crime control equipment from the U.S. and other
    Western suppliers as ready-made implements of torture. Most of
    this equipment, including electroshock discharge weapons, can
    be purchased domestically by private U.S. citizens for ``self-
    defense'' purposes. However, private U.S. citizens--as well as
    U.S. law enforcement officials--are subject to prosecution
    under Federal law for any abuse of these implements as torture
    tools. Exports of these same items, however, should be
    regulated to countries that use torture as part of official or
    condoned practice and may have unreliable or nonexistent
    systems of judicial accountability for torture abuse.
        It is the Committee's expectation that this category of
    items identified by the Secretary of Commerce as ``especially
    susceptible to abuse'' not be so broad as to include any crime
    control item that could be put to incidental use for torture.
    Finally, with regard to section 311's prohibition of the export
    of certain equipment to any destination, including components
    produced for incorporation into these items and the technology
    used for the development or production of these items, it is
    the Committee's intent that this section should not be
    understood as applying to equipment of general use, such as
    machine tools or other equipment that could be used for
    manufacture of implements of terror but are not used
    specifically for that purpose.
    Section 312. Measures to Protect the Public Health
        Section 312 begins to address in a meaningful way the
    problem of under-regulated clinical trials of experimental
    drugs and other test articles on human participants in other
    countries. Subsection 312(a) prohibits the unlicensed export of
    test articles which are intended for clinical investigations.
    Section 312(b) establishes the criteria by which the President
    may grant export licenses to applicants. Notably, section
    312(b) requires applicants to identify each clinical
    investigation for which the export of a test article is
    intended and submit proof to the President that the protocols
    for such clinical investigations have been approved by an
    institutional review board as meeting the requirements of the
    Federal Food, Drug, and Cosmetic Act, and its accompanying
    regulations, for protecting the rights and welfare of human
    subjects. Section 312(c) requires the President to report
    annually to the committees of jurisdiction the names of
    applicants and approved applicants for export licenses as well
    as the countries importing the test articles which are intended
    for clinical investigation. Section 312(d) exempts certain
    countries with regulatory schemes which are substantially
    equivalent to the Federal Food, Drug, and Cosmetic Act
    framework from the provisions of this section. Section 312(e)
    defines the terms which are used in this section.
    Section 313. Promotion of Safe Environments
        Section 313 addresses the problem of the uncontrolled
    international export of potentially hazardous pesticides and
    related chemicals. Current United States law does not prohibit
    the export of pesticides or chemicals that the Environmental
    Protection Agency (EPA) has either deemed too dangerous for
    domestic use or has never formally evaluated. Section 313 is
    intended to promote the development of a comprehensive United
    States administrative and regulatory framework for measuring,
    monitoring and controlling pesticide exports and to determine
    the extent to which these potentially hazardous substances are
    being exported from the United States. The Committee wishes to
    emphasize, however, that this legislation is not intended to
    supplant or dilute the ongoing process to develop domestic
    implementing legislation in connection with various related
    international instruments.
        The potential scale of the problem is reason for concern. A
    study by the California-based Foundation for Advancements in
    Science and Education (FASE) conservatively estimates that the
    United States exported 3.2 billion pounds of pesticides from
    1997-2000--an average of 2.2 million pounds per day or 45 tons
    per hour. Many millions of pounds of these pesticide and
    chemical exports are either banned, severely restricted, never
    registered or restricted for use within U.S. borders.
        The bulk of United States pesticide exports are bound for
    the developing world. In many cases the prevailing conditions
    in these countries--insufficient protective equipment, unsafe
    storage practices and inadequate training of pesticide
    applicators--further compound the dangers to man and
    environment that these substances pose. Many countries also
    lack adequate technical expertise and knowledge sufficient to
    assess the relative safety of given pesticides or shipments. As
    a result, the Committee believes that the U.S. should seek to
    ensure that U.S. pesticide exports do not pose an undue hazard
    to human or environmental safety in either the recipient
    countries or the U.S. through the return of pesticide-tainted
    foods.
        Subsection 313(a) authorizes the President to prohibit
    pesticide exports that he deems a potential hazard to human
    health or the environment either in the US or a foreign
    country. Subsection 313(b) requires the President to provide
    Congress with two reports, both of which are to be submitted
    within 6 months (180 days) of the Act's enactment. The first
    report is expected to identify all US-based companies or
    individuals that export the chemicals and pesticides subject to
    regulation by certain international conventions or that are
    banned, severely restricted, highly regulated, or never
    regulated for use in the United States. The President is also
    requested to report the quantities of these pesticides and
    chemicals that have been exported by these persons during the
    previous two years. The President's second report is to
    describe the current US systems for measuring, monitoring and
    controlling pesticide exports and include recommendations on
    how they might be improved. Subsection 313(c) requires that the
    GAO, in consultation with the National Academy of Sciences and
    other government departments and agencies, provide a report to
    Congress not later than 1 year after the date of the Act's
    enactment. This report is shall, among other matters, examine
    the US regulatory and administrative frameworks governing
    pesticide exports, provide an assessment of their effectiveness
    and efficiency and of the adequacy of current US statutory and
    regulatory authority, compare the US frameworks to those of the
    other members of the OECD and provide recommendations
    concerning any elements that might be adopted to improve the US
    system. In this section, the terms ``highly regulated'' and
    ``never regulated'' are meant to include but extend beyond the
    common terms ``restricted'' and ``never registered'' in order
    to ensure that information is gathered on the broadest possible
    range of pesticides. These terms are not intended to provide
    strict regulatory definitions. The Committee anticipates that
    this information will assist in designing any future policy
    and/or legislative initiatives.
    Section 401. Export license procedures
        Section 401 outlines the process by which export license
    applications are considered by the Secretary of Commerce and
    other departments and agencies. Section 401(a) describes the
    responsibilities of the Secretary with regard to export license
    procedures, and outlines the criteria for evaluating
    applications. Section 401(b) requires the Secretary, within 9
    days, to review an application to ensure it is complete, verify
    that a license is required for the item, and refer it to the
    appropriate departments and agencies. Section 401(c) directs
    referral departments and agencies to respond with a
    recommendation on a referred application within 30 days of
    referral. Section 401(d) provides that within 30 days of
    referral, if the referral departments and agencies are in
    agreement, the Secretary must issue the license or notify the
    applicant of the intent to deny the license; if the referral
    departments and agencies are not in agreement, the Secretary
    must notify the applicant that the application is subject to
    interagency dispute resolution. Section 401(e) requires the
    Secretary to inform an applicant of a denial, the statutory and
    regulatory basis for the denial, the modifications (if any)
    that would permit approval, the considerations that led to the
    denial, and the availability of appeal procedures, with
    applicants permitted 20 days to cure the application's
    deficiencies. Section 401(f) directs the Secretary to establish
    an appeals process for application denials; and authorizes the
    filing of a petition with the Secretary or the filing of an
    action in United States District Court to enforce the time
    limits prescribed in this section. Section 401(g) details
    certain actions that are not to be included in the time periods
    prescribed in the section. The Committee believes that agencies
    should be granted additional extensions of the time limits for
    review if a particular license application is unusually complex
    or presents especially complicated national security or foreign
    policy concerns. The Committee adopted an amendment adding such
    extensions to such limits for no more than 60 additional days
    for these purposes.
        Section 401(h) requires the Secretary to notify the
    Secretary of Defense, the Secretary of State, and other
    appropriate departments or agencies of classification requests,
    and to respond within 14 days to the person making the request.
    If an objection is raised by the Secretary of Defense or
    Secretary of State regarding the Secretary's determination
    within that time period, the disagreement shall be resolved
    through the interagency resolution process described in section
    402, except that any disagreement shall be resolved within 60
    days. The Committee assumes that ``classification'' of
    commodities will usually be a routine, taxonomic exercise, in
    which items are assessed as to which existing category on the
    CCL they belong. However, the Committee also notes that there
    may be occasions when this assessment may actually become a
    determination as to whether a particular item or technology
    ought or ought not to be on the Control List at all. This
    situation could effectively constitute an independent decision
    by the Secretary of Commerce as to what items should be part of
    the National Security Control List, and as such would conflict
    with Section 202(a)(3), under which the identification of which
    items to place on the National Security Control List are made
    with the concurrence of the Secretaries of State and Defense.
    As such, the Committee believes that the Secretaries of State
    and Defense should have the opportunity to object to proposed
    classification determinations by the Secretary of Commerce, so
    long as objections can be resolved within 60 days. The
    Committee expects that this authority will rarely be needed;
    however, it will be in those rare cases where there is serious
    doubt that this authority to object will ensure that U.S.
    security and foreign policy interests will be protected.
    Section 402. Interagency dispute resolution process
        Section 402(a) provides that all license applications on
    which agreement cannot be reached shall be referred to the
    interagency dispute resolution process for decision. Section
    402(b)(1) directs the Secretary of Commerce to establish an
    interagency committee for review of license applications on
    which there is disagreement, and authorizes the chair of that
    committee to consider the positions of the referral departments
    and agencies and make decisions on applications. Section
    402(b)(2) states that the analytic product of the intelligence
    community should be fully considered with regard to proposed
    licenses. Section 402(b) further directs the President to
    establish additional levels for review or appeal of any matter
    that cannot be resolved pursuant to the process described in
    paragraph (1). Each such review shall ensure that matters are
    resolved or referred to the President not later than 90 days
    after the completed license application is referred by the
    Secretary. Section 402(c) directs the Secretary, once a final
    decision is made, to promptly issue the license and ensure all
    appropriate Department personnel are notified, or notify the
    applicant of the intent to deny the application. The Committee
    modified the original bill's specific directives as to how the
    interagency dispute resolution process should work, including
    such minutiae of what would be the voting structure. The
    Committee believes that this is too restrictive of the
    President's authority to organize interagency decision-making
    processes. The Committee was also concerned that the original
    bill's voting process could isolate one or more national
    security agencies during the process. Currently, the
    interagency resolution process operates on consensus; requiring
    by statute a majority rules voting structure could encourage a
    less-cooperative resolution process than currently exists. The
    Committee believes that the President and the agencies involved
    need to be able to determine the most effective process for
    resolving interagency disputes.
    Section 501. International arrangements
        Section 501(a) states the policy of the United States with
    regard to multilateral arrangements, and encourages the
    President to participate in multilateral export control
    regimes. Section 501(b) requires the President to submit to the
    committees of jurisdiction an annual report evaluating the
    effectiveness of each multilateral export control regime and
    detailing efforts to strengthen and harmonize the controls of
    such regimes. Section 501(c) directs the President to establish
    certain features in any multilateral export control regimes in
    which the United States is participating. Section 501(d)
    directs the President to seek the cooperation of regime members
    in establishing certain features in the members' national
    export control systems. Section 501(e) directs the President to
    seek to achieve certain objectives with regard to multilateral
    export control regimes. Section 501(f) requires the Secretary
    of Commerce, within 120 days of the date of enactment of the
    Act, to publish in the Federal Register and post on the
    Department of Commerce website information on multilateral
    export control regimes. Section 501(g) encourages the Secretary
    to participate in the training of foreign officials regarding
    implementation of effective export controls.
    Section 502. Foreign boycotts
        Section 502 directs the President to issue regulations
    prohibiting the participation of U.S. persons in boycotts
    imposed by a foreign country against a country that is friendly
    to the United States.
    Section 503. Penalties
        Section 503(a)(1) provides that an individual who willfully
    violates the Act shall, for each violation, be fined up to 10
    times the value of the exports involved or $1 million,
    whichever is greater; imprisoned for up to 10 years; or both.
    Section 503(a)(2) provides that an entity that willfully
    violates the Act shall, for each violation, be fined up to 10
    times the value of the exports involved or $5 million,
    whichever is greater. Section 503(b) provides that those
    convicted of a willful violation of the Act also shall forfeit
    any property that was the subject of the violation or that was
    derived from the violation. Section 503(c) authorizes the
    Secretary of Commerce to impose civil penalties of up to
    $500,000 per violation, and to deny the export privileges of
    persons who violate the Act or its regulations. Section 503(f)
    provides that persons convicted of violations of certain laws
    may, at the discretion of the Secretary, be denied export
    privileges for up to 10 years.
    Section 504. Missile proliferation control violations
        Section 504 requires the President to impose sanctions on
    U.S. or foreign persons who knowingly export or trade in items
    on the Missile Technology Control Regime (MTCR) Annex, and
    provides waiver authority in limited circumstances.
    Section 505. Chemical and biological weapons proliferation sanctions
        Section 505 requires the President to impose sanctions on
    persons who have knowingly and materially contributed to
    efforts by certain countries to use, develop, or acquire
    chemical or biological weapons, and provides waiver authority
    in limited circumstances.
    Section 506. Enforcement
        Section 506(a) provides general enforcement authorities for
    enforcement of the Act. Section 506(b) authorizes forfeiture of
    items seized in enforcement of the Act. Section 506(c) provides
    that cases involving violations under this Act shall be
    referred to the Secretary of Commerce for civil action, or the
    Attorney General for criminal action, or to both. Section
    506(d) authorizes the use of funds for undercover investigative
    operations. Section 506(e) authorizes the use of wiretaps for
    enforcement of the Act. Section 506(f) directs the Secretary to
    target post-shipment verifications to those exports involving
    the greatest risk to national security and to those countries
    identified by the Director Central Intelligence in the most
    recent report that was submitted to Congress under section 721
    of the Intelligence Authorization Act for Fiscal Year 1997 on
    the acquisition and supply by foreign countries of dual-use
    items and other technology useful for the development or
    production of weapons of mass destruction. The Committee
    believes that it is necessary that all countries identified by
    the Director of Central Intelligence to be involved in
    proliferation activities should be the focus of special
    enforcement attention through increased post-shipment
    verifications. The Committee remains concerned that not enough
    inspections have been conducted over the years, and will
    continue to monitor the performance of the relevant agencies to
    ensure that U.S. dual-use equipment and technology are not
    being diverted to forbidden uses. Section 506(g) requires the
    Secretary to deny licenses to end-users who refuse to allow
    post-shipment verification of a controlled item. Section 506(g)
    further requires that if a country with which the United States
    has entered into an agreement providing for post-shipment
    verifications repeatedly obstructs or otherwise denies the
    post-shipment verification of controlled items, the Secretary
    shall deny a license for the export of those items or any
    substantially identical or directly competitive items or class
    of items to all end users in that country until such post-
    shipment verification is allowed. Section 506(h) authorizes
    $3.5 million to hire 20 additional employees to assist freight
    forwarders in developing a voluntary ``best practices''
    program. Section 506(i) authorizes $4.5 million to hire 10
    additional overseas investigators for post-shipment
    verification. Section 506(j) authorizes the Secretary, in
    cooperation with the U.S. Customs Service, to undertake
    necessary measures to detect unlawful exports and enforce
    violations of the Act. Section 506(l) authorizes $5 million for
    an export licensing and enforcement computer system. Section
    506(o) authorizes $2 million to hire additional license review
    officers, and $2 million to conduct training for new license
    review officers, auditors, and post-shipment verification
    investigators. Section 506(p)(1) authorizes funding in the
    amount of $72 million for fiscal year 2002, $73 million for
    fiscal year 2003, $74 million for fiscal year 2004, and $76
    million for fiscal year 2005, for the Department of Commerce to
    carry out the Act. Section 506(p)(2) terminates the authority
    granted by the Act on December 31, 2005.
    Section 507. Administrative procedures
        Section 507 describes the administrative provisions for the
    execution of authorities under the Act.
    Section 601. Export control authority and regulations
        Section 601(a) authorizes the exercise of any function
    under the Act not otherwise reserved to the President or
    another department to the Secretary of Commerce, and authorizes
    the delegation of any function under the Act from the Secretary
    to the Under Secretary of Commerce for Export Administration or
    other Commerce official. Section 601(b) establishes within the
    Department of Commerce an Under Secretary for Export
    Administration, an Assistant Secretary for Export
    Administration, and an Assistant Secretary for Export
    Enforcement, to carry out functions under the Act. Section
    601(c) authorizes the President and the Secretary to issue such
    regulations as are necessary to carry out the Act, and direct
    the Secretary to report to the committees of jurisdiction on
    proposed amendments to the regulations including regulations on
    the exports to foreign nationals. The Committee continues to be
    concerned over the control of technology that may be
    communicated to foreign nationals verbally, visually,
    electronically or other immaterial means. These transfers of
    technology are colloquially known as ``deemed exports,''
    because they are as much an export of technology as are
    transfers of hardware. As such, they are ``deemed'' to be
    exports subject to controls. It is often difficult for
    companies to know when such information cannot be communicated
    to foreign citizens who may nevertheless be employees,
    contractors, or business partners of U.S. companies and
    subsidiaries. Consequently, the Committee believes that the
    Executive Branch must issue clear regulations that govern the
    handling of such sensitive technology.
    Section 602. Confidentiality of information
        Section 602(a) exempts from disclosure proprietary
    information associated with the processing of license
    applications. Section 602(b) authorizes Congress and the
    General Accounting Office to obtain information from
    appropriate departments and agencies regarding activities
    conducted in the furtherance of the Act. Section 602(c)
    requires the Secretary of Commerce and the Commissioner of
    Customs to exchange licensing and enforcement information to
    facilitate enforcement efforts. Section 602(d) provides that
    any officer or employee who knowingly discloses exempt
    information shall, for each violation, be fined up to $50,000
    in criminal penalties, imprisoned for up to 1 year, or both; or
    shall, for each violation, be fined up to $5,000 in civil
    penalties; or may be removed from office or employment, except
    that no civil penalty may be imposed on an officer or employee
    of the United States, or any department or agency thereof,
    without the concurrence of the department or agency employing
    such officer or employee.
    Section 701. Applicability
        Section 701 states that Title VII applies with respect to
    exports, and all applications fo rlicenses to export satellites
    and related items, notwithstanding any other provision of this
    or any other act.
    Section 702. Export Controls on Satellites and Related Items
        Section 702 requires that all satellites and related items
    that were on the Commerce Control List of dual-use items on
    October 16, 1998, shall be controlled under this Act subject to
    sections 703 and 704.
    Section 703. Export License Procedures
        Section 703(a) requires the Secretary to refer to the
    Secretary of Defense, the Secretary of State, and the heads of
    other departments and agencies that the Secretary considers
    appropriate, all applications for licenses to export satellites
    and related items. Section 703(b) requires the Secretary, the
    Secretary of Defense and the Secretary of State, as
    appropriate, to consult with the Director of the Central
    Intelligence during the review of any application for a license
    involving the overseas launch of a commercial satellite of
    United State origin. Section 703(c) sets a deadline of 30 days
    for departments or agencies to recommend approval or denial of
    a export license application under this section. Section 703(d)
    outlines the interagency dispute resolution process for
    resolving any disagreement between Secretaries on export
    license applications under this section.
    Section 704. Mandatory State Department Review
        Section 704(a) requires that the provision of defense
    services by U.S. persons, including services or assistance
    provided during technical interchange meetings, in connection
    with the launch of a satellite from, or by nationals of, the
    People's Republic of China, are subject to section 38 of the
    Arms Export Control Act. Section 704(b) requires the President
    to notify the Congress pursuant to section 36(c) of the Arms
    Export Control Act without regard to the value limitation
    thereunder at least 30 days before any export license or
    technical assistance agreement is approved
    Section 705. Definitions
        Section 705 defines the terms used in this title.
    Section 706. Conforming Amendments
        Section 706 makes necessary technical and conforming
    amendments.
    Section 707. Effective Date
        Section 707 states that this title and the amendments made
    by this act shall take effect on the date of enactment of this
    act and shall apply to any export license application made
    before such date of enactment which is pending on such date.
    Section 708. Effect of Existing Law
        Section 708 states that nothing in this title shall affect
    the continued application of section 36 or 38 of the Arms
    Export Control Act, or any other provision of that act, to the
    export or other provision of defense services related to items
    in Category 4 of the U.S. munitions list.
    Section 801. Annual report
        Section 801(a) directs the Secretary of Commerce to submit
    to Congress, prior to February 1 of each year, a report on the
    administration of the Act. Section 801(b) details the specific
    items that are to be included in the report. Section 801(c)
    provides that whenever information under the Act is required to
    be published in the Federal Register, such information also
    shall be made available on the Department of Commerce or other
    appropriate government website.
    Section 802. Relationship to the Arms Export Control Act
        Section 802 states that nothing in this act shall be
    construed to alter or affect any provision of the Arms Export
    Control Act or any authority delegated by the President to the
    Secretary of State under the Arms Export Control Act.
    Section 803. Enhancement of Congressional Oversight of Nuclear
            Transfers to North Korea
        Section 803 amends the North Korea Threat Reduction Act of
    1999 to add an additional requirement that must be satisfied
    before an agreement for cooperation (as defined in sec. 11 b.
    of the Atomic Energy Act of 1954 (42 U.S.C. 2014 b.)) between
    the United States and North Korea may become effective, and
    before any license or other approval may be issued for the
    export directly or indirectly to North Korea of any nuclear
    material, facilities, components, or other goods, services, or
    technology that would be subject to such agreement.
        Currently under the North Korea Threat Reduction Act, the
    President must determine and report to the Committee on
    International Relations of the House of Representatives and the
    Committee on Foreign Relations of the Senate that seven
    criteria have been satisfied before an agreement for
    cooperation between the United States and North Korea may
    become effective, and before any license or other approval may
    be issued for the export directly or indirectly to North Korea
    of any nuclear material, facilities, components, or other
    goods, services, or technology that would be subject to such
    agreement. Among these criteria are that North Korea has come
    into full compliance with its safeguards agreement with the
    International Atomic Energy Agency (IAEA), that North Korea has
    permitted the IAEA full access to all additional sites and all
    information (including historical records) deemed necessary by
    the IAEA to verify the accuracy and completeness of North
    Korea's initial report of May 4, 1992, to the IAEA on all
    nuclear sites and material in North Korea, and that North Korea
    is in full compliance with its obligations under the Agreed
    Framework between the United States and North Korea of October
    21, 1994.
        Section 803 adds as an additional requirement that Congress
    enact a joint resolution concurring in the President's
    determination and report under the North Korea Threat Reduction
    Act before an agreement for cooperation between the United
    States and North Korea may become effective, and before any
    license or other approval may be issued for the export directly
    or indirectly to North Korea of any nuclear material,
    facilities, components, or other goods, services, or technology
    that would be subject to such agreement. The purpose of this
    additional requirement is to ensure that not only the
    President, but also Congress is persuaded that the evidence
    supports the conclusion North Korea is in full compliance with
    its non-proliferation obligations before it may receive certain
    key nuclear reactor components pursuant to the Agreed
    Framework. The Committee believes it appropriate for Congress
    to insist on the right to consider and pass judgment on such
    evidence, given North Korea's record of defying its obligations
    as a party to the Treaty on the Non-proliferation of Nuclear
    Weapons, and its history of tense relations with the IAEA.
    Section 804. Procedures for Consideration of Joint Resolutions
        Section 804 provides expedited procedures in both the House
    of Representatives and the Senate to govern consideration of a
    joint resolution concurring in a determination and report
    submitted by the President pursuant to the North Korea Threat
    Reduction Act. The purpose of these procedures is to ensure to
    the degree possible that procedural obstacles do not prevent
    Congress from considering and either approving or disapproving
    such a joint resolution in the event that the President submits
    a determination and report pursuant to the North Korea Threat
    Reduction Act.
        The procedures provided in this section are identical to
    those developed by the Committee on Rules during its
    consideration during the 106th Congress of H.R. 4251, the
    ``Congressional Oversight of Nuclear Transfers to North Korea
    Act of 2000.'' As modified at the request of the Committee on
    Rules, that legislation was approved by the House of
    Representatives on May 15, 2000, by a vote of 374-6, but was
    not taken up by the Senate.
    Section 805. Recommendations of the Judicial Review Commission on
            Foreign Asset Control
        Section 805 directs the Office of Foreign Assets Control of
    the Department of Treasury to publish proposed regulation on
    sanctions, provide interpretations and guidelines to accompany
    the issuance of regulations, and take steps to expand and
    enhance the transparency of its operations and decision-making
    standards.
    Section 806. Improvements to the Automated Export System
        Section 806 requires the Secretary of Commerce, with the
    concurrence of the Secretary of State and the Secretary of the
    Treasury, to publish Federal regulations in the Federal
    Register which requires mandatory filing through the Automated
    Export System (AES) the remainder of the exports that were not
    covered by regulations issued pursuant to section 1252(b) of
    the Security Assistance Act of 1999 (as enacted into law by
    section 1000(a)(7) of Public Law 106-113). Section 806 also
    requires the Secretary of State to conclude an information
    sharing arrangement with the United States Customs Service and
    the Census Bureau to adjust the AES to parallel information
    currently collected by the Department of State. Finally this
    section amends the appropriate sections of U.S. Code to provide
    for civil and criminal penalties for failure to file export
    information.
    Section 807. Technical and conforming amendments
        Section 807 contains technical and conforming amendments,
    including repeal of the provisions relating to performance
    levels of computers in the National Defense Authorization Act
    for fiscal year 1998.
    Section 808. Savings provisions
        Section 808(a) provides that all delegations, rules,
    regulations, or other forms of administrative action effective
    under certain previous or other statutes and in effect on the
    date of enactment of this Act shall continue in effect unless
    superseded. Section 808(b) provides that the Act does not
    affect administrative or judicial proceedings commenced under
    the Export Administration Act of 1979 or Executive Order 12924.
    Section 808(c) ensures that determinations regarding support of
    international terrorism made under the Export Administration
    Act of 1979 or Executive Order 12924 shall be deemed to be made
    under section 310 of this Act. Section 808(d) provides that the
    prohibitions of the Act do not apply to transactions subject to
    the requirements of the National Security Act of 1947, and that
    nothing shall affect the responsibilities and authorities of
    the Director of Central Intelligence under Section 103 of the
    National Security Act of 1947. Section 808(e) requires the
    Secretary of Commerce to make any revisions to current
    regulations required under the Act no later than 180 days after
    the date of enactment of this Act.

                            New Advisory Committees

        Under H.R. 2581, Sec. 105, the Secretary may appoint export
    control advisory committees.

                        Congressional Accountability Act

        H.R. 2581 does not apply to the legislative branch.

                                Federal Mandates

        H.R. 2581 provides no Federal mandates.

             Changes in Existing Law Made by the Bill, as Reported

        In compliance with clause 3(e) 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 italics, existing law in which no change
    is proposed is shown in roman):

                         TITLE 18, UNITED STATES CODE

               *       *       *       *       *       *       *

                                 PART I--CRIMES

               *       *       *       *       *       *       *

                         CHAPTER 45--FOREIGN RELATIONS

               *       *       *       *       *       *       *

    Sec. 951. Agents of foreign governments

        (a) * * *

               *       *       *       *       *       *       *

        (e) Notwithstanding paragraph (d)(4), any person engaged in
    a legal commercial transaction shall be considered to be an
    agent of a foreign government for purposes of this section if--
                (1)  * * *
                (2) such person--
                        (A)  * * *
                        (B) has been convicted of, or has entered a
                    plea of nolo contendere with respect to, any
                    offense under section 792 through 799, 831, or
                    2381 of this title [or under section 11 of the
                    Export Administration Act of 1979], under
                    section 11 of the Export Administration Act of
                    1979 (prior to its repeal by the Export
                    Administration Act of 2001), or under section
                    503 of the Export Administration Act of 2001,
                    except that the provisions of this subsection
                    shall not apply to a person described in this
                    clause for a period of more than five years
                    beginning on the date of the conviction or the
                    date of entry of the plea of nolo contendere,
                    as the case may be.

               *       *       *       *       *       *       *

                            CHAPTER 46--FORFEITURE

               *       *       *       *       *       *       *

    Sec. 983. General rules for civil forfeiture proceedings

        (a) * * *

               *       *       *       *       *       *       *

        (i) Civil Forfeiture Statute Defined.--In this section, the
    term ``civil forfeiture statute''--
                (1) * * *
                (2) does not include--
                        (A) * * *

               *       *       *       *       *       *       *

                        (D) the Trading with the Enemy Act (50
                    U.S.C. App. 1 et seq.); [or]
                        (E) section 1 of title VI of the Act of
                    June 15, 1917 (40 Stat. 233; 22 U.S.C. 401)[.];
                    or
                        (F) the Export Administration Act of 2001.

               *       *       *       *       *       *       *

                            CHAPTER 95--RACKETEERING

               *       *       *       *       *       *       *

    Sec. 1956. Laundering of monetary instruments

        (a) * * *

               *       *       *       *       *       *       *

        (c) As used in this section--
                (1) * * *

               *       *       *       *       *       *       *

                (7) the term ``specified unlawful activity''
            means--
                        (A) * * *

               *       *       *       *       *       *       *

                        (D) an offense under section 32 (relating
                    to the destruction of aircraft), section 37
                    (relating to violence at international
                    airports), section 115 (relating to
                    influencing, impeding, or retaliating against a
                    Federal official by threatening or injuring a
                    family member), section 152 (relating to
                    concealment of assets; false oaths and claims;
                    bribery), section 215 (relating to commissions
                    or gifts for procuring loans), section 351
                    (relating to congressional or Cabinet officer
                    assassination), any of sections 500 through 503
                    (relating to certain counterfeiting offenses),
                    section 513 (relating to securities of States
                    and private entities), section 542 (relating to
                    entry of goods by means of false statements),
                    section 545 (relating to smuggling goods into
                    the United States), section 549 (relating to
                    removing goods from Customs custody), section
                    641 (relating to public money, property, or
                    records), section 656 (relating to theft,
                    embezzlement, or misapplication by bank officer
                    or employee), section 657 (relating to lending,
                    credit, and insurance institutions), section
                    658 (relating to property mortgaged or pledged
                    to farm credit agencies), section 666 (relating
                    to theft or bribery concerning programs
                    receiving Federal funds), section 793, 794, or
                    798 (relating to espionage), section 831
                    (relating to prohibited transactions involving
                    nuclear materials), section 844 (f) or (i)
                    (relating to destruction by explosives or fire
                    of Government property or property affecting
                    interstate or foreign commerce), section 875
                    (relating to interstate communications),
                    section 956 (relating to conspiracy to kill,
                    kidnap, maim, or injure certain property in a
                    foreign country), section 1005 (relating to
                    fraudulent bank entries), 1006 (relating to
                    fraudulent Federal credit institution entries),
                    1007 (relating to Federal Deposit Insurance
                    transactions), 1014 (relating to fraudulent
                    loan or credit applications), 1032 (relating to
                    concealment of assets from conservator,
                    receiver, or liquidating agent of financial
                    institution), section 1111 (relating to
                    murder), section 1114 (relating to murder of
                    United States law enforcement officials),
                    section 1116 (relating to murder of foreign
                    officials, official guests, or internationally
                    protected persons), section 1201 (relating to
                    kidnapping), section 1203 (relating to hostage
                    taking), section 1361 (relating to willful
                    injury of Government property), section 1363
                    (relating to destruction of property within the
                    special maritime and territorial jurisdiction),
                    section 1708 (theft from the mail), section
                    1751 (relating to Presidential assassination),
                    section 2113 or 2114 (relating to bank and
                    postal robbery and theft), section 2280
                    (relating to violence against maritime
                    navigation), section 2281 (relating to violence
                    against maritime fixed platforms), or section
                    2319 (relating to copyright infringement),
                    section 2320 (relating to trafficking in
                    counterfeit goods and services),, section 2332
                    (relating to terrorist acts abroad against
                    United States nationals), section 2332a
                    (relating to use of weapons of mass
                    destruction), section 2332b (relating to
                    international terrorist acts transcending
                    national boundaries), or section 2339A
                    (relating to providing material support to
                    terrorists) of this title, section 46502 of
                    title 49, United States Code,, a felony
                    violation of the Chemical Diversion and
                    Trafficking Act of 1988 (relating to precursor
                    and essential chemicals), section 590 of the
                    Tariff Act of 1930 (19 U.S.C. 1590) (relating
                    to aviation smuggling), section 422 of the
                    Controlled Substances Act (relating to
                    transportation of drug paraphernalia), section
                    38(c) (relating to criminal violations) of the
                    Arms Export Control Act, [section 11 (relating
                    to violations) of the Export Administration Act
                    of 1979] section 503 (relating to penalties) of
                    the Export Administration Act of 2001, section
                    206 (relating to penalties) of the
                    International Emergency Economic Powers Act,
                    section 16 (relating to offenses and
                    punishment) of the Trading with the Enemy Act,
                    any felony violation of section 15 of the Food
                    Stamp Act of 1977 (relating to food stamp
                    fraud) involving a quantity of coupons having a
                    value of not less than $5,000, any violation of
                    section 543(a)(1) of the Housing Act of 1949
                    (relating to equity skimming), or any felony
                    violation of the Foreign Corrupt Practices Act;
                    or

               *       *       *       *       *       *       *

                             CHAPTER 113B--TERRORISM

               *       *       *       *       *       *       *

    Sec. 2332d. Financial transactions

        (a) Offense.--Except as provided in regulations issued by
    the Secretary of the Treasury, in consultation with the
    Secretary of State, whoever, being a United States person,
    knowing or having reasonable cause to know that a country is
    designated under [section 6(j) of the Export Administration Act
    (50 U.S.C. App. 2405)] section 310 of the Export Administration
    Act of 2001 as a country supporting international terrorism,
    engages in a financial transaction with the government of that
    country, shall be fined under this title, imprisoned for not
    more than 10 years, or both.

               *       *       *       *       *       *       *

       CHAPTER 119--WIRE AND ELECTRONIC COMMUNICATIONS INTERCEPTION AND
                     INTERCEPTION OF ORAL COMMUNICATIONS

               *       *       *       *       *       *       *

    Sec. 2516. Authorization for interception of wire, oral, or electronic
                        communications

        (1) The Attorney General, Deputy Attorney General,
    Associate Attorney General, or any Assistant Attorney General,
    any acting Assistant Attorney General, or any Deputy Assistant
    Attorney General or acting Deputy Assistant Attorney General in
    the Criminal Division specially designated by the Attorney
    General, may authorize an application to a Federal judge of
    competent jurisdiction for, and such judge may grant in
    conformity with section 2518 of this chapter an order
    authorizing or approving the interception of wire or oral
    communications by the Federal Bureau of Investigation, or a
    Federal agency having responsibility for the investigation of
    the offense as to which the application is made, when such
    interception may provide or has provided evidence of--
                (a)  * * *

               *       *       *       *       *       *       *

                (q) any violation of, or conspiracy to violate, the
            Export Administration Act of 2001 or the Export
            Administration Act of 1979.

               *       *       *       *       *       *       *

                                  ----------

                  SECTION 9703 OF TITLE 31, UNITED STATES CODE

    Sec. 9703. Department of the Treasury Forfeiture Fund

        (a) In General.--There is established in the Treasury of
    the United States a fund to be known as the ``Department of the
    Treasury Forfeiture Fund'' (referred to in this section as the
    ``Fund''). The Fund shall be available to the Secretary,
    without fiscal year limitation, with respect to seizures and
    forfeitures made pursuant to any law (other than section 7301
    or 7302 of the Internal Revenue Code of 1986) enforced or
    administered by the Department of the Treasury [or the United
    States Coast Guard], the United States Coast Guard, or the
    Bureau of Export Administration of the Department of Commerce
    for the following law enforcement purposes:
                (1)  * * *
                (2) At the discretion of the Secretary--
                        (A)  * * *
                        (B) purchases of evidence or information
                    by--
                                (i) a Department of the Treasury
                            law enforcement organization with
                            respect to--
                                        (I) a violation of section
                                    1956 or 1957 of title 18
                                    (relating to money laundering);
                                    [or]
                                        (II) a law, the violation
                                    of which may subject property
                                    to forfeiture under section 981
                                    or 982 of title 18; or
                                        (III) a violation of the
                                    Export Administration Act of
                                    1979, the Export Administration
                                    Act of 2001, or any regulation,
                                    license, or order issued under
                                    those Acts;

               *       *       *       *       *       *       *

        (p) Definitions.--For purposes of this section--
                (1) Department of the treasury law enforcement
            organization.--The term ``Department of the Treasury
            law enforcement organization'' means the United States
            Customs Service, the United States Secret Service, the
            Bureau of Alcohol, Tobacco and Firearms, the Internal
            Revenue Service, the Federal Law Enforcement Training
            Center, the Financial Crimes Enforcement Network, and
            any other law enforcement component of the Department
            of the Treasury so designated by the Secretary. In
            addition, for purposes of this section, the Bureau of
            Export Administration of the Department of Commerce
            shall be considered to be a Department of the Treasury
            law enforcement organization.

               *       *       *       *       *       *       *

                                  ----------

    STROM THURMOND NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1999

               *       *       *       *       *       *       *

       TITLE XV--MATTERS RELATING TO ARMS CONTROL, EXPORT CONTROLS, AND
                            COUNTER-PROLIFERATION

               *       *       *       *       *       *       *

                     Subtitle B--Satellite Export Controls

               *       *       *       *       *       *       *

    SEC. 1513. SATELLITE CONTROLS UNDER THE UNITED STATES MUNITIONS LIST.

        [(a) Control of Satellites on the United States Munitions
    List.--Notwithstanding any other provision of law, all
    satellites and related items that are on the Commerce Control
    List of dual-use items in the Export Administration Regulations
    (15 CFR part 730 et seq.) on the date of the enactment of this
    Act shall be transferred to the United States Munitions List
    and controlled under section 38 of the Arms Export Control Act
    (22 U.S.C. 2778).]

               *       *       *       *       *       *       *

        (c) Effective Date.--[(1) Subsection (a) shall take effect
    on March 15, 1999, and shall not apply to any export license
    issued before such effective date or to any export license
    application made under the Export Administration Regulations
    before such effective date.]
        [(2)] The amendments made by subsection (b) shall be
    effective as of October 1, 1998.

               *       *       *       *       *       *       *

    SEC. 1514. NATIONAL SECURITY CONTROLS ON SATELLITE EXPORT LICENSING.

        (a) Actions by the President.--Notwithstanding any other
    provision of law, the President shall take such actions as are
    necessary to implement the following requirements for improving
    national security controls in the export licensing of
    satellites and related items:
                (1)  * * *

               *       *       *       *       *       *       *

                (6) Mandatory sharing of approved licenses and
            agreements.--The [Secretary of State] Secretary of
            Commerce and the Secretary of State shall provide
            copies of all approved export licenses and technical
            assistance agreements associated with launches in
            foreign countries of satellites to the Secretaries of
            Defense and Energy, the Director of Central
            Intelligence, and the Director of the Arms Control and
            Disarmament Agency.

               *       *       *       *       *       *       *

                                  ----------

           NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2000

               *       *       *       *       *       *       *

                  TITLE XIV--PROLIFERATION AND EXPORT CONTROLS

    Sec. 1401. Adherence of People's Republic of China to Missile Technology
              Control Regime.
         * * * * * * *
    [Sec. 1410. Timely notification of licensing decisions by the Department
              of State.]

               *       *       *       *       *       *       *

    SEC. 1404. SECURITY IN CONNECTION WITH SATELLITE EXPORT LICENSING.

        As a condition of the export license for any satellite to
    be launched in a country subject to section 1514 of the Strom
    Thurmond National Defense Authorization Act for Fiscal Year
    1999 (22 U.S.C. 2778 note), the [Secretary of State] Secretary
    of Commerce or the Secretary of State, as the case may be,
    shall require the following:
                (1)  * * *

               *       *       *       *       *       *       *

    [SEC. 1410. TIMELY NOTIFICATION OF LICENSING DECISIONS BY THE
                        DEPARTMENT OF STATE.

        [Not later than 180 days after the date of the enactment of
    this Act, the Secretary of State shall prescribe regulations to
    provide timely notice to the manufacturer of a commercial
    satellite of United States origin of the final determination of
    the decision on the application for a license involving the
    overseas launch of such satellite.]

    SEC. 1411. ENHANCED INTELLIGENCE CONSULTATION ON SATELLITE LICENSE
                        APPLICATIONS.

        (a) Consultation During Review of Applications.--The
    Secretary of State and Secretary of Defense, as appropriate,
    shall consult with the Director of Central Intelligence during
    the review of any application for a license [involving the
    overseas launch of a commercial satellite of United States
    origin] to provide defense services referred to in section 704
    of the Export Administration Act of 2001, in connection with
    the launch of a satellite. The purpose of the consultation is
    to assure that the launch of the satellite, if the license is
    approved, will meet the requirements necessary to protect the
    national security interests of the United States.

               *       *       *       *       *       *       *

    SEC. 1412. INVESTIGATIONS OF VIOLATIONS OF EXPORT CONTROLS BY UNITED
                        STATES SATELLITE MANUFACTURERS.

        (a)  * * *

               *       *       *       *       *       *       *

        (d) Identification of Persons Subject to Investigation.--
    The [Secretary of State and] Secretary of Commerce, the
    Secretary of State, and the Attorney General shall develop
    appropriate mechanisms to identify, for the purposes of
    processing export licenses for commercial satellites, persons
    who are the subject of an investigation described in subsection
    (a).

               *       *       *       *       *       *       *

                                  ----------

       TITLE XIII OF THE ADMIRAL JAMES W. NANCE AND MEG DONOVAN FOREIGN
            RELATIONS AUTHORIZATION ACT, FISCAL YEARS 2000 AND 2001

                   DIVISION A--DEPARTMENT OF STATE PROVISIONS

         * * * * * * *

                      TITLE XIII--MISCELLANEOUS PROVISIONS

    Sec. 1301. Publication of arms sales certifications.
         * * * * * * *
    [Sec. 1309. Effective regulation of satellite export activities.]
    Sec. 1309. Office of Defense Trade Controls.
         * * * * * * *

    TITLE XIII--MISCELLANEOUS PROVISIONS

               *       *       *       *       *       *       *

    [SEC. 1309. EFFECTIVE REGULATION OF SATELLITE EXPORT ACTIVITIES.

        [(a) Licensing regime.--
                [(1) Establishment.--The Secretary of State shall
            establish a regulatory regime for the licensing for
            export of commercial satellites, satellite
            technologies, their components, and systems which shall
            include expedited approval, as appropriate, of the
            licensing for export by United States companies of
            commercial satellites, satellite technologies, their
            components, and systems, to NATO allies and major non-
            NATO allies (as used within the meaning of section
            644(q) of the Foreign Assistance Act of 1961).
                [(2) Requirements.--For proposed exports to those
            nations which meet the requirements of paragraph (1),
            the regime should include expedited processing of
            requests for export authorizations that--
                        [(A) are time-critical, including a
                    transfer or exchange of information relating to
                    a satellite failure or anomaly in-flight or on-
                    orbit;
                        [(B) are required to submit bids to
                    procurements offered by foreign persons;
                        [(C) relate to the re-export of unimproved
                    materials, products, or data; or
                        [(D) are required to obtain launch and on-
                    orbit insurance.
                [(3) Additional requirements.--In establishing the
            regulatory regime under paragraph (1), the Secretary of
            State shall ensure that--
                        [(A) United States national security
                    considerations and United States obligations
                    under the Missile Technology Control Regime are
                    given priority in the evaluation of any
                    license; and
                        [(B) such time is afforded as is necessary
                    for the Department of Defense, the Department
                    of State, and the United States intelligence
                    community to conduct a review of any license.]

    SEC. 1309. OFFICE OF DEFENSE TRADE CONTROLS.

        [(b) Financial and Personnel Resources.--]Of the funds
    authorized to be appropriated in section 101(1)(A), $9,000,000
    is authorized to be appropriated for the Office of Defense
    Trade Controls of the Department of State for each of the
    fiscal years 2000 and 2001, to enable that office to carry out
    its responsibilities.
        [(c) Improvement and Assessment.--The Secretary of State
    should, not later than 6 months after the date of the enactment
    of this Act, submit to the Congress a plan for--
                [(1) continuously gathering industry and public
            suggestions for potential improvements in the
            Department of State's export control regime for
            commercial satellites; and
                [(2) arranging for the conduct and submission to
            Congress, not later than 15 months after the date of
            the enactment of this Act, of an independent review of
            the export control regime for commercial satellites as
            to its effectiveness at promoting national security and
            economic competitiveness.]

               *       *       *       *       *       *       *

                                  ----------

                    NORTH KOREA THREAT REDUCTION ACT OF 1999

               *       *       *       *       *       *       *

                      TITLE VIII--MISCELLANEOUS PROVISIONS

         * * * * * * *

                    Subtitle B--North Korea Threat Reduction

    Sec. 821.  Short title.
         * * * * * * *
    Sec. 823. Procedures for consideration of joint resolution described in
              section 822(a)(2).
    Sec. [823.] 824.  Definitions.
         * * * * * * *

    TITLE VIII--MISCELLANEOUS PROVISIONS

               *       *       *       *       *       *       *

                    Subtitle B--North Korea Threat Reduction

    SEC. 821. SHORT TITLE.

        This subtitle may be cited as the ``North Korea Threat
    Reduction Act of 1999''.

    SEC. 822. RESTRICTIONS ON NUCLEAR COOPERATION WITH NORTH KOREA.

        (a) In General.--Notwithstanding any other provision of law
    or any international agreement, no agreement for cooperation
    (as defined in sec. 11 b. of the Atomic Energy Act of 1954 (42
    U.S.C. 2014 b.)) between the United States and North Korea may
    become effective, no license may be issued for export directly
    or indirectly to North Korea of any nuclear material,
    facilities, components, or other goods, services, or technology
    that would be subject to [such agreement,] such agreement (or
    that are controlled under the Export Trigger List of the
    Nuclear Suppliers Group), and no approval may be given for the
    transfer or retransfer directly or indirectly to North Korea of
    any nuclear material, facilities, components, or other goods,
    services, or technology that would be subject to [such
    agreement, until the President] such agreement (or that are
    controlled under the Export Trigger List of the Nuclear
    Suppliers Group), until--
                (1) the President determines and reports to the
            Committee on International Relations of the House of
            Representatives and the Committee on Foreign Relations
            of the Senate that--
                        [(1)] (A) North Korea has come into full
                    compliance with its safeguards agreement with
                    the IAEA (INFCIRC/403), and has taken all steps
                    that have been deemed necessary by the IAEA in
                    this regard;
                        [(2)] (B) North Korea has permitted the
                    IAEA full access to all additional sites and
                    all information (including historical records)
                    deemed necessary by the IAEA to verify the
                    accuracy and completeness of North Korea's
                    initial report of May 4, 1992, to the IAEA on
                    all nuclear sites and material in North Korea;
                        [(3)] (C) North Korea is in full compliance
                    with its obligations under the Agreed
                    Framework;
                        [(4)] (D) North Korea has consistently
                    taken steps to implement the Joint Declaration
                    on Denuclearization, and is in full compliance
                    with its obligations under numbered paragraphs
                    1, 2, and 3 of the Joint Declaration on
                    Denuclearization (excluding in the case of
                    numbered paragraph 3 facilities frozen pursuant
                    to the Agreed Framework);
                        [(5)] (E) North Korea does not have uranium
                    enrichment or nuclear reprocessing facilities
                    (excluding facilities frozen pursuant to the
                    Agreed Framework), and is making no significant
                    progress toward acquiring or developing such
                    facilities;
                        [(6)] (F) North Korea does not have nuclear
                    weapons and is making no significant effort to
                    acquire, develop, test, produce, or deploy such
                    weapons; and
                        [(7)] (G) the transfer to North Korea of
                    key nuclear components, under the proposed
                    agreement for cooperation with North Korea and
                    in accordance with the Agreed Framework, is in
                    the national interest of the United States[.];
                    and
                (2) a joint resolution of the two Houses of
            Congress is enacted into law--
                        (A) the matter after the resolving clause
                    of which is as follows: ``That the Congress
                    hereby concurs in the determination and report
                    of the President relating to compliance by
                    North Korea with certain international
                    obligations transmitted pursuant to section
                    822(a)(1) of the North Korea Threat Reduction
                    Act of 1999.'';
                        (B) which does not have a preamble; and
                        (C) the title of which is as follows:
                    ``Joint Resolution relating to compliance by
                    North Korea with certain international
                    obligations pursuant to the North Korea Threat
                    Reduction Act of 1999.''.

               *       *       *       *       *       *       *

    SEC. 823. PROCEDURES FOR CONSIDERATION OF JOINT RESOLUTION DESCRIBED IN
                        SECTION 822(A)(2).

        (a) Rulemaking.--The provisions of this section are enacted
    by the Congress--
                (1) as an exercise of the rulemaking power of the
            House of Representatives and the Senate, respectively,
            and, as such, shall be considered as part of the rules
            of either House and shall supersede other rules only to
            the extent they are inconsistent therewith; and
                (2) with full recognition of the constitutional
            right of either House to change the rules so far as
            they relate to the procedures of that House at any
            time, in the same manner, and to the same extent as in
            the case of any other rule of that House.
        (b) Introduction and Referral.--
                (1) Introduction.--A joint resolution described in
            section 822(a)(2)--
                        (A) shall be introduced in the House of
                    Representatives by the majority leader or
                    minority leader or by a Member of the House of
                    Representatives designated by the majority
                    leader or minority leader; and
                        (B) shall be introduced in the Senate by
                    the majority leader or minority leader or a
                    Member of the Senate designated by the majority
                    leader or minority leader.
                (2) Referral.--The joint resolution shall be
            referred to the Committee on International Relations of
            the House of Representatives and the Committee on
            Foreign Relations of the Senate.
        (c) Discharge of Committees.--If a committee to which a
    joint resolution described in section 822(a)(2) is referred has
    not reported such joint resolution by the end of 30 days
    beginning on the date of its introduction, such committee shall
    be discharged from further consideration of such joint
    resolution, and such joint resolution shall be placed on the
    appropriate calendar of the House involved.
        (d) Floor Consideration in the House of Representatives.--
                (1) In general.--On or after the third calendar day
            (excluding Saturdays, Sundays, or legal holidays,
            except when the House of Representatives is in session
            on such a day) after the date on which the committee to
            which a joint resolution described in section 822(a)(2)
            is referred has reported, or has been discharged from
            further consideration of, such a joint resolution, it
            shall be in order for any Member of the House to move
            to proceed to the consideration of the joint
            resolution. A Member of the House may make the motion
            only on the day after the calendar day on which the
            Member announces to the House the Member's intention to
            do so. Such motion is privileged and is not debatable.
            The motion is not subject to amendment or to a motion
            to postpone. A motion to reconsider the vote by which
            the motion is agreed to shall not be in order. If a
            motion to proceed to the consideration of the joint
            resolution is agreed to, the House shall immediately
            proceed to consideration of the joint resolution which
            shall remain the unfinished business until disposed of.
                (2) Debate.--Debate on a joint resolution described
            in section 822(a)(2), and on all debatable motions and
            appeals in connection therewith, shall be limited to
            not more than two hours, which shall be divided equally
            between those favoring and those opposing the joint
            resolution. An amendment to the joint resolution is not
            in order. A motion further to limit debate is in order
            and is not debatable. A motion to table, a motion to
            postpone, or a motion to recommit the joint resolution
            is not in order. A motion to reconsider the vote by
            which the joint resolution is agreed to or disagreed to
            is not in order.
                (3) Appeals.--Appeals from the decisions of the
            Chair to the procedure relating to a joint resolution
            described in section 822(a)(2) shall be decided without
            debate.
        (e) Floor Consideration in the Senate.--Any joint
    resolution described in section 822(a)(2) 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.
        (f) Consideration by the Other House.--If, before the
    passage by one House of a joint resolution of that House
    described in section 822(a)(2), that House receives from the
    other House a joint resolution described in section 822(a)(2),
    then the following procedures shall apply:
                (1) The joint resolution of the other House shall
            not be referred to a committee and may not be
            considered in the House receiving it except in the case
            of final passage as provided in paragraph (2)(B).
                (2) With respect to a joint resolution described in
            section 822(a)(2) of the House receiving the joint
            resolution--
                        (A) the procedure in that House shall be
                    the same as if no joint resolution had been
                    received from the other House; but
                        (B) the vote on final passage shall be on
                    the joint resolution of the other House.
                (3) Upon disposition of the joint resolution
            received from the other House, it shall no longer be in
            order to consider the joint resolution that originated
            in the receiving House.
        (g) Computation of Days.--In the computation of the period
    of 30 days referred to in subsection (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.

    SEC. [823.] 824. DEFINITIONS.

        In this subtitle:
                (1)  * * *

               *       *       *       *       *       *       *

                                  ----------

    TITLE 13, UNITED STATES CODE

               *       *       *       *       *       *       *

      CHAPTER 9--COLLECTION AND PUBLICATION OF FOREIGN COMMERCE AND TRADE
                                   STATISTICS

    Sec.
    301. Collection and publication.
              * * * * * * *
    [305. Violations, penalties.]
    305. Penalties for unlawful export information activities.

               *       *       *       *       *       *       *

    Sec. 303. Secretary of Treasury functions

          To assist the Secretary to carry out the provisions of
    this chapter, the Secretary of the Treasury shall collect
    information in the form and manner prescribed by the
    regulations issued pursuant to this chapter from persons
    engaged in foreign commerce or trade[, other than by mail,] and
    from the owners or operators of carriers.

    Sec. 304. Filing export information, delayed filings, penalties for
                        failure to file

          (a) The information or reports in connection with the
    exportation or transportation of cargo required to be filed by
    carriers with the Secretary of the Treasury under any rule,
    regulation, or order issued pursuant to this chapter may be
    filed after the departure of such carrier from the port or
    place of exportation or transportation, whether such departing
    carrier is destined directly to a foreign port or place or to a
    noncontiguous area, or proceeds by way of other ports or places
    of the United States, provided that a bond in an approved form
    in [the penal sum of $1,000] a penal sum of $10,000 is filed
    with the Secretary of the Treasury. The Secretary of Commerce
    may, by a rule, regulation, or order issued in conformity
    herewith, prescribe a maximum period after such departure
    during which the required information or reports may be filed.
    In the event any such information or report is not filed within
    such prescribed period, [a penalty not to exceed $100 for each
    day's delinquency beyond the prescribed period, but not more
    than $1,000, shall be exacted] the Secretary of Commerce (and
    officers and employees of the Department of Commerce designated
    by the Secretary) may impose a civil penalty not to exceed
    $1,000 for each day's delinquency beyond the prescribed period,
    but not more than $10,000 per violation. Civil suit may be
    instituted in the name of the United States against the
    principal and surety for the recovery of any penalties that may
    accrue and be exacted in accordance with the terms of the bond.
          (b) Any person, other than a person described in
    subsection (a), required to submit export information, shall
    file such information in accordance with any rule, regulation,
    or order issued pursuant to this chapter. In the event any such
    information or reports are not filed within such prescribed
    period, the Secretary of Commerce (and officers and employees
    of the Department of Commerce designated by the Secretary) may
    impose a civil penalty not to exceed $1,000 for each day's
    delinquency beyond the prescribed period, but not more than
    $10,000 per violation.
          [(b)] (c) The Secretary may remit or mitigate any penalty
    incurred for violations of this section and regulations issued
    pursuant thereto if, in his opinion, they were incurred without
    willful negligence or fraud, or other circumstances justify a
    remission or mitigation.

    [Sec. 305. Violations, penalties

          [Any person, including the owners or operators of
    carriers, violating the provisions of this chapter, or any
    rule, regulation, or order issued thereunder, except as
    provided in section 304 above, shall be liable to a penalty not
    to exceed $1,000 in addition to any other penalty imposed by
    law. The amount of any such penalty shall be payable into the
    Treasury of the United States and shall be recoverable in a
    civil suit in the name of the United States.]

    Sec. 305. Penalties for unlawful export information activities

        (a) Criminal Penalties.--(1) Any person who knowingly fails
    to file or knowingly submits false or misleading export
    information through the Shippers Export Declaration (SED) (or
    any successor document) or the Automated Export System (AES)
    shall be subject to a fine not to exceed $10,000 per violation
    or imprisonment for not more than 5 years, or both.
        (2) Any person who knowingly reports any information on or
    uses the SED or the AES to further any illegal activity shall
    be subject to a fine not to exceed $10,000 per violation or
    imprisonment for not more than 5 years, or both.
        (3) Any person who is convicted under this subsection
    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.
        (b) Civil Penalties.--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 per violation on any person violating the provisions of
    this chapter or any rule, regulation, or order issued
    thereunder, except as provided in section 304. Such penalty may
    be in addition to any other penalty imposed by law.
        (c) Civil Penalty Procedure.--(1) When a civil penalty is
    sought for a violation of this section or of section 304, 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.
    Any such hearing shall be conducted in accordance with sections
    556 and 557 of title 5.
        (2) If any person fails to pay a civil penalty imposed
    under this chapter, the Secretary may ask the Attorney General
    to commence a civil action in an appropriate district court of
    the United States 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
    action, the validity, amount, and appropriateness of such
    penalty shall not be subject to review.
        (3) The Secretary may remit or mitigate any penalties
    imposed under paragraph (1) if, in his or her opinion--
                (A) the penalties were incurred without willful
            negligence or fraud; or
                (B) other circumstances exist that justify a
            remission or mitigation.
        (4) If, pursuant to section 306, the Secretary delegates
    functions under this section to another agency, the provisions
    of law of that agency relating to penalty assessment, remission
    or mitigation of such penalties, collection of such penalties,
    and limitations of actions and compromise of claims, shall
    apply.
        (5) Any amount paid in satisfaction of a civil penalty
    imposed under this section or section 304 shall be deposited
    into the general fund of the Treasury and credited as
    miscellaneous receipts.
        (d) Enforcement.--(1) The Secretary of Commerce may
    designate officers or employees of the Office of Export
    Enforcement to conduct investigations pursuant to this chapter.
    In conducting such investigations, those officers or employees
    may, to the extent necessary or appropriate to the enforcement
    of this chapter, exercise such authorities as are conferred
    upon them by other laws of the United States, subject to
    policies and procedures approved by the Attorney General.
        (2) The Commissioner of Customs may designate officers or
    employees of the Customs Service to enforce the provisions of
    this chapter, or to conduct investigations pursuant to this
    chapter.
        (e) Regulations.--The Secretary of Commerce shall
    promulgate regulations for the implementation and enforcement
    of this section.
        (f) Exemption.--The criminal fines provided for in this
    section are exempt from the provisions of section 3571 of title
    18.

               *       *       *       *       *       *       *

                                  ----------

                       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 Secrtary 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 volumne 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 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.
        [(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
    Administrator of the Agency for International Development in
    the case of export controls applicable with respect to any
    developing country. The Secretary of State with respect to
    developed countries, and the Administrator 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 Administrator of the Agency for
    International Development, 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 logsmay 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 in
    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, with 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
    of 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 be
    subpena 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
                    tramsmission 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, 2001.

                              [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 ``sections 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 second sentence immediately after ``wine''.]
                                  ----------

    ENERGY POLICY AND CONSERVATION ACT

               *       *       *       *       *       *       *

                                TABLE OF CONTENTS

         * * * * * * *

            TITLE I--MATTERS RELATED TO DOMESTIC SUPPLY AVAILABILITY

                             Part A--Domestic Supply

    Sec. 101. Coal conversion.
         * * * * * * *
    [Sec. 103. Domestic use of energy supplies and related materials and
              equipment.]
         * * * * * * *

            TITLE I--MATTERS RELATED TO DOMESTIC SUPPLY AVAILABILITY

    Part A--Domestic Supply

               *       *       *       *       *       *       *

      [domestic use of energy supplies and related materials and equipment

        [Sec. 103. (a) The President may, by rule, under such terms
    and conditions as he determines to be appropriate and necessary
    to carry out the purposes of this Act, restrict exports of--
                [(1) coal, petroleum products, natural gas, or
            petrochemical feedstocks, and
                [(2) supplies of materials or equipment which he
            determines to be necessary (A) to maintain or further
            exploration, production, refining, or transportation of
            energy supplies, or (B) for the construction or
            maintenance of energy facilities within the United
            States.
        [(b)(1) The President shall exercise the authority provided
    for in subsection (a) to promulgate a rule prohibiting the
    export of crude oil and natural gas produced in the United
    States, except that the President may, pursuant to paragraph
    (2), exempt from such prohibition such crude oil or natural gas
    exports which he determines to be consistent with the national
    interest and the purposes of this Act.
        [(2) Exemptions from any rule prohibiting crude oil or
    natural gas exports shall be included in such rule or provided
    for in an amendment thereto and may be based on the purpose for
    export, class of seller or purchaser, country of destination,
    or any other reasonable classification or basis as the
    President determines to be appropriate and consistent with the
    national interest and the purposes of this Act.
        [(c) In order to implement any rule promulgated under
    subsection (a) of this section, the President may request and,
    if so, the Secretary of Commerce shall, pursuant to the
    procedures established by the Export Administration Act of 1979
    (but without regard to the phrase ``and to reduce the serious
    inflationary impact of foreign demand'' in section 3(2)(C) of
    such Act), impose such restrictions as specified in any rule
    under subsection (a) on exports of coal, petroleum products,
    natural gas, or petrochemical feedstocks, and such supplies of
    materials and equipment.
        [(d) Any finding by the President pursuant to subsection
    (a) or (b) and any action taken by the Secretary of Commerce
    pursuant thereto shall take into account the national interest
    as related to the need to leave uninterrupted or unimpaired--
                [(1) exchanges in similar quantity for convenience
            or increased efficiency of transportation with persons
            or the government of a foreign state,
                [(2) temporary exports for convenience or increased
            efficiency of transportation across parts of an
            adjacent foreign state which exports reenter the United
            States, and
                [(3) the historical trading relations of the United
            States with Canada and Mexico.
        [(e)(1) The provisions of subchapter II of chapter 5 of
    title 5, United States Code, shall apply with respect to the
    promulgation of any rule pursuant to this section, except that
    the President may waive the requirement pertaining to the
    notice of proposed rulemaking or period for comment only if he
    finds that compliance with such requirements may seriously
    impair his ability to impose effective and timely prohibitions
    on exports.
        [(2) In the event such notice and comment period are waived
    with respect to a rule promulgated under this section, the
    President shall afford interested persons an opportunity to
    comment on any such rule at the earliest practicable date
    thereafter.
        [(3) If the President determines to request the Secretary
    of Commerce to impose specified restrictions as provided for in
    subsection (c), the enforcement and penalty provisions of the
    Export Administration Act of 1969 shall apply, in lieu of this
    Act, to any violation of such restrictions.
        [(f) The President shall submit quarterly reports to the
    Congress concerning the administration of this section and any
    findings made pursuant to subsection (a) or (b).]

               *       *       *       *       *       *       *

                      TITLE II--STANDBY ENERGY AUTHORITIES

        Part B--Authorities With Respect to International Energy Program

                          international oil allocation

        Sec. 251. (a) * * *

               *       *       *       *       *       *       *

        [(d) Neither section 103 of this Act nor section 28(u) of
    the Mineral Leasing Act of 1920 shall preclude the allocation
    and export, to other countries in accordance with this section,
    of petroleum products produced in the United States.]

               *       *       *       *       *       *       *

                            exchange of information

        Sec. 254. (a)  * * *

               *       *       *       *       *       *       *

        (e) The authority under this section to transmit
    information shall be subject to any limitations on disclosure
    contained in other laws, except that such authority may be
    exercised without regard to--
                (1)  * * *

               *       *       *       *       *       *       *

                (3) section [12 of the Export Administration Act of
            1979] 602 of the Export Administration Act of 2001;

               *       *       *       *       *       *       *

                                  ----------

         SECTION 12 OF THE ALASKA NATURAL GAS TRANPORTATION ACT OF 1976

                              [export limitations

        [Sec. 12. Any exports of Alaska natural gas shall be
    subject to the requirements of the Natural Gas Act and section
    103 of the Energy Policy and Conservation Act, except that in
    addition to the requirements of such Acts, before any Alaska
    natural gas in excess of 1,000 Mcf per day may be exported to
    any nation other than Canada or Mexico, the President must make
    and publish an express finding that such exports will not
    diminish the total quantity or quality nor increase the total
    price of energy available to the United States.]
                                  ----------

                     SECTION 28 OF THE MINERAL LEASING ACT

                               grant of authority

        Sec. 28. (a)  * * *

               *       *       *       *       *       *       *

                      [exports of alaskan north slope oil

        [(s)(1) Subject to paragraphs (2) through (6) of this
    subsection and notwithstanding any other provision of this Act
    or any other provision of law (including any regulation)
    applicable to the export of 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), such oil
    may be exported unless the President finds that exportation of
    this oil is not in the national interest. The President shall
    make his national interest determination within five months of
    the date of enactment of this subsection. In evaluating whether
    exports of this oil are in the national interest, the President
    shall at a minimum consider--
                [(A) whether exports of this oil would diminish the
            total quantity or quality of petroleum available to the
            United States;
                [(B) the results of an appropriate environmental
            review, including consideration of appropriate measures
            to mitigate any potential adverse effects of exports of
            this oil on the environment, which shall be completed
            within four months of the date of the enactment of this
            subsection; and
                [(C) whether exports of this oil are likely to
            cause sustained material oil supply shortages or
            sustained oil prices significantly above world market
            levels that would cause sustained material adverse
            employment effects in the United States or that would
            cause substantial harm to consumers, including
            noncontiguous States and Pacific territories.
    If the President determines that exports of this oil are in the
    national interest, he may impose such terms and conditions
    (other than a volume limitation) as are necessary or
    appropriate to ensure that such exports are consistent with the
    national interest.
        [(2) Except in the case of oil exported to a country with
    which the United States entered into a bilateral international
    oil supply agreement before November 26, 1979, or to a country
    pursuant to the International Emergency Oil Sharing Plan of the
    International Energy Agency, any 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) shall, when
    exported, be transported by a vessel documented under the laws
    of the United States and owned by a citizen of the United
    States (as determined in accordance with section 2 of the
    Shipping Act, 1916 (46 U.S.C. App. 802)).
        [(3) Nothing in this subsection shall restrict the
    authority of the President under the Constitution, the
    International Emergency Economic Powers Act (50 U.S.C. 1701 et
    seq.), the National Emergencies Act (50 U.S.C. 1601 et seq.),
    or Part B of title II of the Energy Policy and Conservation Act
    (42 U.S.C. 6271-76) to prohibit exports.
        [(4) The Secretary of Commerce shall issue any rules
    necessary for implementation of the President's national
    interest determination, including any licensing requirements
    and conditions, within 30 days of the date of such
    determination by the President. The Secretary of Commerce shall
    consult with the Secretary of Energy in administering the
    provisions of this subsection.
        [(5) If the Secretary of Commerce finds that exporting oil
    under authority of this subsection has caused sustained
    material oil supply shortages or sustained oil prices
    significantly above world market levels and further finds that
    these supply shortages or price increases have caused or are
    likely to cause sustained material adverse employment effects
    in the United States, the Secretary of Commerce, in
    consultation with the Secretary of Energy, shall recommend, and
    the President may take, appropriate action concerning exports
    of this oil, which may include modifying or revoking authority
    to export such oil.
        [(6) Administrative action under this subsection is not
    subject to sections 551 and 553 through 559 of title 5, United
    States Code.]

               *       *       *       *       *       *       *

                             [limitations on export

        [(u) Any domestically produced crude oil transported by
    pipeline over rights-of-way granted pursuant to section 28 of
    the Mineral Leasing Act of 1920, except such crude oil which is
    either exchanged in similar quantity for convenience or
    increased efficiency of transportation with persons or the
    government of an adjacent foreign state, or which is
    temporarily exported for convenience or increased efficiency of
    transportation across parts of an adjacent foreign state and
    reenters the United States, shall be subject to all of the
    limitations and licensing requirements of the Export
    Administration Act of 1979 (50 U.S.C. App. 2401 and following)
    and, in addition, before any crude oil subject to this section
    may be exported under the limitations and licensing
    requirements and penalty and enforcement provisions of the
    Export Administration Act of 1979 the President must make and
    publish an express finding that such exports will not diminish
    the total quantity or quality of petroleum available to the
    United States, and are in the national interest and are in
    accord with the provisions of the Export Administration Act of
    1979: Provided, That the President shall submit reports to the
    Congress containing findings made under this section, and after
    the date of receipt of such report Congress shall have a period
    of sixty calendar days, thirty days of which Congress must have
    been in session, to consider whether exports under the terms of
    this section are in the national interest. If the Congress
    within this time period passes a concurrent resolution of
    disapproval stating disagreement with the President's finding
    concerning the national interest, further exports made pursuant
    to the aforementioned Presidential findings shall cease.]

               *       *       *       *       *       *       *

                                  ----------

                          TITLE 10, UNITED STATES CODE

               *       *       *       *       *       *       *
                        Subtitle A--General Military Law

    PART I--ORGANIZATION AND GENERAL MILITARY POWERS

               *       *       *       *       *       *       *

    CHAPTER 3--GENERAL POWERS AND FUNCTIONS

               *       *       *       *       *       *       *

    Sec. 130. Authority to withhold from public disclosure certain
                        technical data

        (a) Notwithstanding any other provision of law, the
    Secretary of Defense may withhold from public disclosure any
    technical data with military or space application in the
    possession of, or under the control of, the Department of
    Defense, if such data may not be exported lawfully outside the
    United States without an approval, authorization, or license
    under the Export Administration Act of [1979 (50 U.S.C. App.
    2401-2420)] 2001 or the Arms Export Control Act (22 U.S.C. 2751
    et seq.). However, technical data may not be withheld under
    this section if regulations promulgated under either such Act
    authorize the export of such data pursuant to a general,
    unrestricted license or exemption in such regulations.

               *       *       *       *       *       *       *

    PART IV--SERVICE, SUPPLY, AND PROCUREMENT

               *       *       *       *       *       *       *

              CHAPTER 134--MISCELLANEOUS ADMINISTRATIVE PROVISIONS

    SUBCHAPTER I--MISCELLANEOUS AUTHORITIES, PROHIBITIONS, AND LIMITATIONS
                        ON THE USE OF APPROPRIATED FUNDS

    Sec. 2249a. Prohibition on providing financial assistance to terrorist
                        countries

        (a) Prohibition.--Funds available to the Department of
    Defense may not be obligated or expended to provide financial
    assistance to--
                (1) any country with respect to which the Secretary
            of State has made a determination under section
            [6(j)(1)(A) of the Export Administration Act of 1979
            (50 U.S.C. App. 2405(j)(1)(A))] 310(a)(1)(A) of the
            Export Administration Act of 2001;

               *       *       *       *       *       *       *

    CHAPTER 137--PROCUREMENT GENERALLY

               *       *       *       *       *       *       *

    Sec. 2327. Contracts: consideration of national security objectives

        (a) * * *
        (b) Prohibition on Entering Into Contracts Against the
    Interests of the United States.--Except as provided in
    subsection (c), the head of an agency may not enter into a
    contract with a firm or a subsidiary of a firm if--
                (1) a foreign government owns or controls (whether
            directly or indirectly) a significant interest in such
            firm or subsidiary (or, in the case of a subsidiary, in
            the firm that owns the subsidiary); and
                (2) such foreign government is the government of a
            country that the Secretary of State determines under
            section [6(j)(1)(A) of the Export Administration Act of
            1979 (50 U.S.C. App. 2405(j)(1)(A))] 310(a)(1)(A) of
            the Export Administration Act of 2001 has repeatedly
            provided support for acts of international terrorism.

               *       *       *       *       *       *       *

    CHAPTER 141--MISCELLANEOUS PROCUREMENT PROVISIONS

               *       *       *       *       *       *       *

    Sec. 2410i. Prohibition on contracting with entities that comply with
                        the secondary Arab boycott of Israel

        (a) Policy.--Under section [3(5)(A) of the Export
    Administration Act of 1979 (50 U.S.C. App. 2402(5)(A))] 502(a)
    of the Export Administration Act of 2001, it is the policy of
    the United States to oppose restrictive trade practices or
    boycotts fostered or imposed by foreign countries against other
    countries friendly to the United States or against any other
    United States person.

               *       *       *       *       *       *       *

    Subtitle C--Navy and Marine Corps

               *       *       *       *       *       *       *

    PART IV--GENERAL ADMINISTRATION

               *       *       *       *       *       *       *

    Sec. 7430. Disposition of products

        (a) * * *

               *       *       *       *       *       *       *

        [(e) Any petroleum produced from the naval petroleum
    reserves, except such petroleum which is either exchanged in
    similar quantities for convenience or increased efficiency or
    transportation with persons or the government of an adjacent
    foreign state, or which is temporarily exported for convenience
    or increased efficiency of transportation across parts of an
    adjacent foreign state and reenters the United States, shall be
    subject to all of the limitations and licensing requirements of
    the Export Administration Act of 1979 (50 U.S.C. App. 2401 et
    seq.) and, in addition, before any petroleum subject to this
    section may be exported under the limitations and licensing
    requirement and penalty and enforcement provisions of the
    Export Administration Act of 1979, the President must make and
    publish an express finding that such exports will not diminish
    the total quality or quantity of petroleum available to the
    United States and that such exports are in the national
    interest and are in accord with the Export Administration Act
    of 1979.]

               *       *       *       *       *       *       *

                                  ----------

              SECTION 28 OF THE OUTER CONTINENTAL SHELF LANDS ACT

        [Sec. 28. Limitation on Export.--(a) Except as provided in
    subsection (d) of this section, any oil or gas produced from
    the outer Continental Shelf shall be subject to the
    requirements and provisions of the Export Administration Act of
    1969 (50 App. U.S.C. 2401 et seq.).
        [(b) Before any oil or gas subject to this section may be
    exported under the requirements and provisions of the Export
    Administration Act of 1969, the President shall make and
    publish an express finding that such exports will not increase
    reliance on imported oil or gas, are in the national interest,
    and are in accord with the provisions of the Export
    Administration Act of 1969.
        [(c) The President shall submit reports to the Congress
    containing findings made under this section, and after the date
    of receipt of such report Congress shall have a period of sixty
    calendar days, thirty days of which Congress must have been in
    session, to consider whether exports under the terms of this
    section are in the national interest. If the Congress within
    such time period passes a concurrent resolution of disapproval
    stating disagreement with the President's finding concerning
    the national interest, further exports made pursuant to such
    Presidential findings shall cease.
        [(d) The provisions of this section shall not apply to any
    oil or gas which is either exchanged in similar quantity for
    convenience or increased efficiency of transportation with
    persons or the government of a foreign state, or which is
    temporarily exported for convenience or increased efficiency of
    transportation across parts of an adjacent foreign state and
    reenters the United States, or which is exchanged or exported
    pursuant to an existing international agreement.]
                                  ----------

    ARMS EXPORT CONTROL ACT

               *       *       *       *       *       *       *

    Chapter 3.--MILITARY EXPORT CONTROLS

               *       *       *       *       *       *       *

        Sec. 36. Reports on Commercial and Governmental Military
    Exports; Congressional Action.--(a) * * *

               *       *       *       *       *       *       *

        (g) Information relating to offset agreements provided
    pursuant to subparagraph (C) of the fifth sentence of
    subsection (b)(1) and the second sentence of subsection (c)(1)
    shall be treated as confidential information in accordance with
    section [12(c) of the Export Administration Act of 1979] 602(c)
    of the Export Administration Act of 2001 (50 U.S.C. App.
    2411(c)).

               *       *       *       *       *       *       *

        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 503 of the
    Export Administration Act of 2001, by subsections (a) and (b)
    of section 506 of that Act, and by section 602 of that Act,
    subject to the same terms and conditions as are applicable to
    such powers under such Act, except that section [11(c)(2)(B)]
    507(b)(1) of such Act shall not apply, and instead, as
    prescribed in regulations issued under this section, the
    Secretary of State may assess civil penalties for violations of
    this Act and regulations prescribed thereunder and further may
    commence a civil action to recover such civil penalties, and
    except further that the names of the countries and the types
    and quantities of defense articles for which licenses are
    issued under this section shall not be withheld from public
    disclosure unless the President determines that the release of
    such information would be contrary to the national interest.
    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] 503(c) of the Export Administration Act of 2001, 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.
        (f)(1) The President shall periodically review the items on
    the United States Munitions List to determine what items, if
    any, no longer warrant export controls under this section. The
    results of such reviews shall be reported to the Speaker of the
    House of Representatives and to the Committee on Foreign
    Relations and the Committee on Banking, Housing, and Urban
    Affairs of the Senate. Such a report shall be submitted at
    least 30 days before any item is removed from the Munitions
    List and shall describe the nature of any controls to be
    imposed on that item under the Export Administration Act of
    [1979] 2001.

               *       *       *       *       *       *       *

        (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 or section 503 of
                    the Export Administration Act of 2001 (50
                    U.S.C. App. 2410),

               *       *       *       *       *       *       *

    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]
    subsections (c), (d), and (e) of section 503, section 507(c),
    and subsections (a) and (b) of section 506, of the Export
    Administration Act of 2001, subject to the same terms and
    conditions as are applicable to such powers under that Act,
    except that section [11(c)(2)(B) of such Act] 507(b)(1) of that
    Act shall not apply, and instead, as prescribed in regulations
    issued under this section, the Secretary of State may assess
    civil penalties for violations of this Act and regulations
    prescribed thereunder and further may commence a civil action
    to recover such civil penalties, and except further that
    notwithstanding section [11(c)] 503(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] 503(b), 503(c), 503(e), 506(a), and 506(b) of the
    Export Administration Act of 2001 (subject to the same terms
    and conditions as are applicable to such powers under that
    Act), except that section [11(c)(2)(B)] 507(b)(1) of such Act
    shall not apply, and instead, as prescribed in regulations
    issued under this section, the Secretary of State may assess
    civil penalties for violations of this Act and regulations
    prescribed thereunder and further may commence a civil action
    to recover such civil penalties, and except further that,
    notwithstanding section [11(c)] 503(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 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] title II or III of the
    Export Administration Act of 2001.

               *       *       *       *       *       *       *

    SEC. 72. DENIAL OF THE TRANSFER OF MISSILE EQUIPMENT OR TECHNOLOGY BY
                        UNITED STATES PERSONS

        (a) Sanctions.--(1) If the President determines that a
    United States person knowingly--
                (A) exports, transfers, or otherwise engages in the
            trade of any item on the MTCR Annex, in violation of
            the provisions of section 38 of this Act, [section 5 or
            6 of the Export Administration Act of 1979 (50 U.S.C.
            App. 2404, 2405)] title II or III of the Export
            Administration Act of 2001, or any regulations or
            orders issued under any such provisions,

               *       *       *       *       *       *       *

        (c) Presumption.--In determining whether to apply sanctions
    under subsection (a) to a United States person involved in the
    export, transfer, or trade of an item on the MTCR Annex, it
    should be a rebuttable presumption that such item is designed
    for use in a missile listed in the MTCR Annex if the President
    determines that the final destination of the item is a country
    the government of which the Secretary of State has determined,
    for purposes of [6(j)(1)(A) of the Export Administration Act of
    1979] 310(a)(1) of the Export Administration Act of 2001, has
    repeatedly provided support for acts of international
    terrorism.

    SEC. 73. TRANSFERS OF MISSILE EQUIPMENT OR TECHNOLOGY BY FOREIGN
                        PERSONS

        (a) Sanctions.--(1) Subject to subsections (c) through (g),
    if the President determines that a foreign person, after the
    date of the enactment of this chapter, knowingly--
                (A)  * * *

               *       *       *       *       *       *       *

    or if the President has made a determination with respect to a
    foreign person under section [11B(b)(1) of the Export
    Administration Act of 1979] 504(b)(1) of the Export
    Administration Act of 2001, then the President shall impose on
    that foreign person the applicable sanctions under paragraph
    (2).
        (f) Presumption.--In determining whether to apply sanctions
    under subsection (a) to a foreign person involved in the
    export, transfer, or trade of an item on the MTCR Annex, it
    should be a rebuttable presumption that such item is designed
    for use in a missile listed in the MTCR Annex if the President
    determines that the final destination of the item is a country
    the government of which the Secretary of State has determined,
    for purposes of [6(j)(1)(A) of the Export Administration Act of
    1979] section 310(a)(1) of the Export Administration Act of
    2001, has repeatedly provided support for acts of international
    terrorism.

               *       *       *       *       *       *       *

    SEC. 74. DEFINITIONS

        (a) In General.--For purposes of this chapter--
                (1) * * *

               *       *       *       *       *       *       *

                (6) the term ``United States person'' has the
            meaning given that term in section [16(2) of the Export
            Administration Act of 1979 (50 U.S.C. App. 2415(2))]
            2(20) of the Export Administration Act of 2001;

            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) * * *

               *       *       *       *       *       *       *

                        (C) through any other transaction not
                    subject to sanctions pursuant to the Export
                    Administration Act of [1979] 2001,
            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) * * *
                        (B) any foreign country whose government is
                    determined for purposes of [section 6(j) of the
                    Export Administration Act of 1979 (50 U.S.C.
                    2405(j))] section 310 of the Export
                    Administration Act of 2001 to be a government
                    that has repeatedly provided support for acts
                    of international terrorism; 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] title III of the Export
            Administration Act of 2001 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).

               *       *       *       *       *       *       *

                                  ----------

                  SECTION 5 OF THE TRADING WITH THE ENEMY ACT

        Sec. 5. (a)  * * *
      (b) The Attorney General shall cover into the Treasury, to
    the credit of miscellaneous receipts, all sums from property
    vested in or transferred to the Attorney General under this
    Act--
                (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] titles II
            and III of the Export Administration Act of 2001, or
            with respect to which acts are prohibited by chapter 37
            of title 18, United States Code.

               *       *       *       *       *       *       *

                                  ----------

    FOREIGN ASSISTANCE ACT OF 1961

               *       *       *       *       *       *       *

                                    PART II

    Chapter 1--Policy

               *       *       *       *       *       *       *

        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 2001 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 2001), 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.

               *       *       *       *       *       *       *

                                    PART III

                         Chapter 1--General Provisions

        Sec. 620E. Assistance to Pakistan.--(a) * * *

               *       *       *       *       *       *       *

        (h) Ballistic Missile Sanctions Not Affected.--Nothing
    contained herein shall affect sanctions for transfers of
    missile equipment or technology required under section [11B of
    the Export Administration Act of 1979] 504 of the Export
    Administration Act of 2001 or section 73 of the Arms Export
    Control Act.

               *       *       *       *       *       *       *

    SEC. 620H. PROHIBITION ON ASSISTANCE TO COUNTRIES THAT PROVIDE MILITARY
                        EQUIPMENT TO TERRORIST STATES.

        (a) Prohibition.--
                (1) In general.--The President shall withhold
            assistance under this Act to the government of any
            country that provides lethal military equipment to a
            country the government of which the Secretary of State
            has determined is a terrorist government for the
            purposes of [section 6(j) of the Export Administration
            Act of 1979 (50 U.S.C. App. 2405(j))] section 310 of
            the Export Administration Act of 2001, or 620A of the
            Foreign Assistance Act of 1961 (22 U.S.C. 2371).

               *       *       *       *       *       *       *

                                  ----------

     SECTION 565 OF THE FOREIGN RELATIONS AUTHORIZATION ACT, FISCAL YEARS
                                 1994 AND 1995

    SEC. 565. PROHIBITION ON DISCRIMINATORY CONTRACTS.

        (a) Prohibition.--
                (1) * * *
                (2) For purposes of this section--
                        (A) a foreign person complies with the
                    boycott of Israel by Arab League countries when
                    that foreign person takes or knowingly agrees
                    to take any action, with respect to the boycott
                    of Israel by Arab League countries, which
                    section [8(a) of the Export Administration Act
                    of 1979 (50 U.S.C. App. 2407(a))] 502(b) of the
                    Export Administration Act of 2001 prohibits a
                    United States person from taking, except that
                    for purposes of this paragraph, the term
                    ``United States person'' as used in
                    subparagraphs (B) and (C) of section [8(a)(1)
                    of such Act] 502(b)(1) of that Act shall be
                    deemed to mean ``person''; and
                        (B) the term ``foreign person'' means any
                    person other than a United States person as
                    defined in section [16(2) of the Export
                    Administration Act of 1979 (50 U.S.C. App.
                    2415)] 2(20) of the Export Administration Act
                    of 2001.
                (3) For purposes of paragraph (1), a foreign person
            shall be deemed not to comply with the boycott of
            Israel by Arab League countries if that person, or the
            Secretary of State or his designee on the basis of
            available information, certifies that the person
            violates or otherwise does not comply with the boycott
            of Israel by Arab League countries by taking any
            actions prohibited by section [8(a) of the Export
            Administration Act of 1979 (50 U.S.C. App. 2407(a))]
            502(b) of the Export Administration Act of 2001.
            Certification by the Secretary of State or his designee
            may occur only 30 days after notice has been given to
            the Congress that this certification procedure will be
            utilized at a specific overseas mission.

               *       *       *       *       *       *       *

        (c) Responses to Contract Solicitations.--(1) Except as
    provided in paragraph (2) of this subsection, the Secretary of
    State shall ensure that any response to a solicitation for a
    bid or a request for a proposal, with respect to a contract
    covered by subsection (a), includes the following clause, in
    substantially the following form:

                        ``arab league boycott of israel

        ``(a)  * * *
        ``(b) Certification.--By submitting this offer, the Offeror
    certifies that it is not--
                ``(1) taking or knowingly agreeing to take any
            action, with respect to the boycott of Israel by Arab
            League countries, which section [8(a) of the Export
            Administration Act of 1979 (50 U.S.C. App. 2407(a))]
            502(b) of the Export Administration Act of 2001
            prohibits a United States person from taking; or

               *       *       *       *       *       *       *

        (3) The Secretary of State shall ensure that all State
    Department contract solicitations include a detailed
    explanation of the requirements of section [8(a) of the Export
    Administration Act of 1979 (50 U.S.C. App. 2407(a))] 502(b) of
    the Export Administration Act of 2001.

               *       *       *       *       *       *       *

                                  ----------

     SECTION 140 OF FOREIGN RELATIONS AUTHORIZATION ACT, 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)  * * *
                      (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 310 of the Export
                    Administration Act of 2001;

               *       *       *       *       *       *       *

              (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 or section 310 of the Export
            Administration Act of 2001, 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

               *       *       *       *       *       *       *

    SEC. 36. DEPARTMENT OF STATE REWARDS PROGRAM.

        (a) * * *

               *       *       *       *       *       *       *

        (j) Definitions.--As used in this section:
                (1) Act of international terrorism.--The term ``act
            of international terrorism'' includes--
                        (A)  * * *
                        (B) any act, as determined by the
                    Secretary, which materially supports the
                    conduct of international terrorism, including
                    the counterfeiting of United States currency or
                    the illegal use of other monetary instruments
                    by an individual, group, or country supporting
                    international terrorism as determined for
                    purposes of [section 6(j)(1)(A) of the Export
                    Administration Act of 1979 (50 U.S.C. App.
                    2405(j)(1)(A))] section 310(a)(1) of the Export
                    Administration Act of 2001.

               *       *       *       *       *       *       *

            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] section 310 of the
            Export Administration Act of 2001, 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] section 310 of the Export
            Administration Act of 2001, to be a country which has
            repeatedly provided support for acts of international
            terrorism; and

               *       *       *       *       *       *       *

                                  ----------

     SECTION 528 OF THE FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED
                        PROGRAMS APPROPRIATION ACT, 1994

       OPPOSITION TO ASSISTANCE TO TERRORIST COUNTRIES BY INTERNATIONAL
                             FINANCIAL INSTITUTIONS

        Sec. 528. (a) Instructions for United States Executive
    Directors.--The Secretary of the Treasury shall instruct the
    United States Executive Director of each international
    financial institution designated in subsection (b), and the
    Administrator of the Agency for International Development shall
    instruct the United States Executive Director of the
    International Fund for Agriculture Development, to use the
    voice and vote of the United States to oppose any loan or other
    use of the funds of the respective institution to or for a
    country for which the Secretary of State has made a
    determination under section [6(j) of the Export Administration
    Act of 1979] 310 of the Export Administration Act of 2001.

               *       *       *       *       *       *       *

                                  ----------

     SECTION 589 OF THE FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED
                        PROGRAMS APPROPRIATION ACT, 1997

             civil liability for acts of state sponsored terrorism

          Sec. 589. (a) an official, employee, or agent of a
    foreign state designated as a state sponsor of terrorism
    designated under section [6(j) of the Export Administration Act
    of 1979] 310 of the Export Administration Act of 2001 while
    acting within the scope of his or her office, employment, or
    agency shall be liable to a United States national or the
    national's legal representative for personal injury or death
    caused by acts of that official, employee, or agent for which
    the courts of the United States may maintain jurisdiction under
    section 1605(a)(7) of title 28, United States Code, for money
    damages which may include economic damages, solatium, pain, and
    suffering, and punitive damages if the acts were among those
    described in section 1605(a)(7).

               *       *       *       *       *       *       *

                                  ----------

     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 of the Export Administration
    [Act of 1979] Act of 2001.
                                  ----------

         SECTION 203 OF THE INTERNATIONAL EMERGENCY ECONOMIC POWERS ACT

                              grant 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 2001, or with respect to which
            acts are prohibited by chapter 37 of title 18, United
            States Code; or

               *       *       *       *       *       *       *

                                  ----------

                  INTERNATIONAL RELIGIOUS FREEDOM ACT OF 1998

               *       *       *       *       *       *       *
                         TITLE IV--PRESIDENTIAL ACTIONS

       Subtitle I--Targeted Responses to Violations of Religious Freedom
    Abroad

               *       *       *       *       *       *       *

    SEC. 405. DESCRIPTION OF PRESIDENTIAL ACTIONS.

        (a) Description of Presidential Actions.--Except as
    provided in subsection (d), the Presidential actions referred
    to in this subsection are the following:
                (1) * * *

               *       *       *       *       *       *       *

                (13) Ordering the heads of the appropriate United
            States agencies not to issue any (or a specified number
            of ) specific licenses, and not to grant any other
            specific authority (or a specified number of
            authorities), to export any goods or technology to the
            specific foreign government, agency, instrumentality,
            or official found or determined by the President to be
            responsible for violations under section 401 or 402,
            under--
                        (A) the Export Administration Act of [1979]
                    2001;

               *       *       *       *       *       *       *

    Subtitle II--Strengthening Existing Law

               *       *       *       *       *       *       *

    SEC. 423. EXPORTS OF CERTAIN ITEMS USED IN PARTICULARLY SEVERE
                        VIOLATIONS OF RELIGIOUS FREEDOM.

        (a) Mandatory Licensing.--Notwithstanding any other
    provision of law, the Secretary of Commerce, with the
    concurrence of the Secretary of State, shall include on the
    list of crime control and detection instruments or equipment
    controlled for export and reexport under section [6(n) of the
    Export Administration Act of 1979 (22 U.S.C. App. 2405(n))] 311
    of the Export Administration Act of 2001, or under any other
    provision of law, items being exported or reexported to
    countries of particular concern for religious freedom that the
    Secretary of Commerce, with the concurrence of the Secretary of
    State, and in consultation with appropriate officials including
    the Assistant Secretary of State for Democracy, Human Rights
    and Labor and the Ambassador at Large, determines are being
    used or are intended for use directly and in significant
    measure to carry out particularly severe violations of
    religious freedom.

               *       *       *       *       *       *       *

                                  ----------

     SECTION 103 OF THE CHEMICAL WEAPONS CONVENTION IMPLEMENTATION ACT OF
                                      1998

    SEC. 103. CIVIL LIABILITY OF THE UNITED STATES.

        (a) * * *

               *       *       *       *       *       *       *

        (e) Recoupment.--
                (1) * * *
                (2) Sanctions on foreign companies.--
                        (A) * * *
                        (B) Sanctions.--
                                (i) * * *
                                [(ii) Sanctions under export
                            administration act of 1979.--The
                            authorities under section 6 of the
                            Export Administration Act of 1979 shall
                            be used to prohibit the export of any
                            goods or technology on the control list
                            established pursuant to section 5(c)(1)
                            of that Act to a person described in
                            subparagraph (A).]
                                (ii) Sanctions under export
                            administration act of 2001.--The
                            authorities of title III of the Export
                            Administration Act of 2001 shall be
                            used to prohibit the export to a person
                            described in subparagraph (A) of any
                            items on the National Security Control
                            List established under section 202(a)
                            of that Act.

               *       *       *       *       *       *       *

                (3) Sanctions on foreign governments.--
                        (A) * * *
                        (B) Sanctions.--
                                (i) * * *

               *       *       *       *       *       *       *

                                [(iv) Sanctions under export
                            administration act of 1979.--The
                            authorities of section 6 of the Export
                            Administration Act of 1979 shall be
                            used to prohibit the export of any
                            goods or technology on the control list
                            established pursuant to section 5(c)(1)
                            of that Act to a country described in
                            subparagraph (A).]
                                (iv) Sanctions under export
                            administration act of 2001.--The
                            authorities of title III of the Export
                            Administration Act of 2001 shall be
                            used to prohibit the export to a
                            country described in subparagraph (A)
                            of any items on the National Security
                            Control List established under section
                            202(a) of that Act.

               *       *       *       *       *       *       *

                                  ----------

    SECTION 1423 OF THE DEFENSE AGAINST WEAPONS OF MASS DESTRUCTION ACT OF
                                      1996

    SEC. 1423. SENSE OF CONGRESS CONCERNING CRIMINAL PENALTIES.

        (a)  * * *
        (b) Urging of Revison to Guidelines.--Congress urges the
    United States Sentencing Commission to revise the relevant
    sentencing guidelines to provide for increased penalties for
    offenses relating to importation, attempted importation,
    exportation, and attempted exportation of nuclear, biological,
    or chemical weapons or related materials or technologies under
    the following provisions of law:
                (1) Section [11 of the Export Administration Act of
            1979 (50 U.S.C. App. 2410)] 503 of the Export
            Administration Act of 2001.

               *       *       *       *       *       *       *

                                  ----------

                 SECTION 586G OF THE IRAQ SANCTIONS ACT OF 1990

    SEC. 586G. SANCTIONS AGAINST IRAQ.

      (a) Imposition.--Except as provided in section 586H, the
    following sanctions shall apply with respect to Iraq:
              (1)  * * *

               *       *       *       *       *       *       *

              [(3) Exports of certain goods and technology.--The
            authorities of section 6 of the Export Administration
            Act of 1979 (50 U.S.C. App. 2405) shall be used to
            prohibit the export to Iraq of any goods or technology
            listed pursuant to that section or section 5(c)(1) of
            that Act (50 U.S.C. App. 2404(c)(1)) on the control
            list provided for in section 4(b) of that Act (50
            U.S.C. App. 2403(b)).]
                (3) Exports of certain commodities and
            technology.--The authorities of titles II and III of
            the Export Administration Act of 2001 shall be used to
            prohibit the export to Iraq of any commodities or
            technology on the Commerce Control List established
            under that Act.

               *       *       *       *       *       *       *

      (b) Contract Sanctity.--For purposes of the export controls
    imposed pursuant to subsection (a)(3), [the date described in
    subsection (m)(1) of section 6 of the Export Administration Act
    of 1979 (50 U.S.C. App. 2405) shall be deemed] the dates
    described in section 301(d)(1) of the Export Administration Act
    of 2001 shall be deemed to be August 1, 1990.
                                  ----------

            SECTION 601 OF THE NUCLEAR NON-PROLIFERATION ACT OF 1978

                            reports of the president

    Sec. 601. (a) The President shall review all activities of
    Government departments and agencies relating to preventing
    proliferation and shall make a report to Congress in January of
    1979 and annually in January of each year thereafter on the
    Government's efforts to prevent proliferation. This report
    shall include but not be limited to-
                (1) * * *

               *       *       *       *       *       *       *

                (6) a description of the implementation of nuclear
            and nuclear-related dual-use export controls in the
            preceding calendar year, including a summary by type of
            commodity and destination of--
                        (A) all transactions for which--
                                (i) * * *

               *       *       *       *       *       *       *

                                (iii) approvals were issued under
                            the Export Administration Act of [1979]
                            2001, or section 109 b.(3) of the 1954
                            Act, for the retransfer of any item,
                            technical data, component, or
                            substance; or
                                (iv) authorizations were made as
                            required by section 57 b.(2) of the
                            1954 Act to engage, directly or
                            indirectly, in the production of
                            special nuclear material; and

               *       *       *       *       *       *       *

                [(C)] (7) a description of the progress of those
            independent states of the former Soviet Union that are
            non-nuclear-weapon states and of the Baltic states
            towards achieving the objective of applying full scope
            safeguards to all their peaceful nuclear activities.
    Portions of the information required by [paragraph (6)]
    paragraphs (6) and (7) may be submitted in classified form, as
    necessary. Any such information that may not be published or
    disclosed under section [12(c)(1) of the Export Administration
    Act of 1979] 602(a) of the Export Administration Act of 2001
    shall be submitted as confidential.

               *       *       *       *       *       *       *

                                  ----------

    CHEMICAL AND BIOLOGICAL WEAPONS CONTROL AND WARFARE ELIMINATION ACT OF
                                      1991

               *       *       *       *       *       *       *
    TITLE III--CONTROL AND ELIMINATION OF CHEMICAL AND BIOLOGICAL WEAPONS

               *       *       *       *       *       *       *

    SEC. 304. UNITED STATES EXPORT CONTROLS.

      (a) In General.--The President shall--
              (1) * * *
              (2) use the authorities of the Export Administration
            Act of [1979] 2001 to control the export of those goods
            and technology,
    that the President determines would assist the government of
    any foreign country in acquiring the capability to develop,
    produce, stockpile, deliver, or use chemical or biological
    weapons.

               *       *       *       *       *       *       *

    SEC. 307. SANCTIONS AGAINST USE OF CHEMICAL OR BIOLOGICAL WEAPONS.

      (a) Initial Sanctions.--If, at any time, the President makes
    a determination pursuant to section 306(a)(1) with respect to
    the government of a foreign country, the President shall
    forthwith impose the following sanctions:
              (1) * * *

               *       *       *       *       *       *       *

              [(5) Exports of national security-sensitive goods and
            technology.--The authorities of section 6 of the Export
            Administration Act of 1979 (50 U.S.C. 2405) shall be
            used to prohibit the export to that country of any
            goods or technology on that part of the control list
            established under section 5(c)(1) of that Act (22
            U.S.C. 2404(c)(1)).]
                (5) Exports of certain goods and technology.--The
            authorities of title III of the Export Administration
            Act of 2001 shall be used to prohibit the export to
            that country of any goods or technology on the National
            Security Control List established under section 202 of
            that Act.
      (b) Additional Sanctions if Certain Conditions Not Met.--
              (1) * * *
              (2) Sanctions.--The sanctions referred to in
            paragraph (1) are the following:
                      (A) * * *

               *       *       *       *       *       *       *

                      (C) Further export restrictions.--The
                    authorities of [section 6 of the Export
                    Administration Act of 1979] title III of the
                    Export Administration Act of 2001 shall be used
                    to prohibit exports to that country of all
                    other goods and technology (excluding food and
                    other agricultural commodities and products).

               *       *       *       *       *       *       *

      (e) Contract Sanctity.--
              (1) Sanctions not applied to existing contracts.--(A)
             * * *
              (B) The same restrictions of [subsection (p) of
            section 6 of the Export Administration Act of 1979 (50
            U.S.C. App. 2405), as that subsection is so
            redesignated by section 304(b) of this title, which are
            applicable to exports prohibited under section 6 of
            that Act] section 301(d) of the Export Administration
            Act of 2001, which are applicable to exports prohibited
            under title III of that Act shall apply to exports
            prohibited under subsection (a)(5) or (b)(2)(C) of this
            section. For purposes of this subparagraph, any
            contract or agreement the performance of which (as
            determined by the President) would have the effect of
            assisting a foreign government in using chemical or
            biological weapons in violation of international law or
            in using lethal chemical or biological weapons against
            its own nationals shall be treated as constituting [a
            breach of the peace that poses a serious and direct
            threat to the strategic interest of the United States,
            within the meaning of subparagraph (A) of section 6(p)
            of that Act] a serious threat to a foreign policy
            interest of the United States, within the meaning of
            section 301(d)(2)(A) of the Export Administration Act
            of 2001.

               *       *       *       *       *       *       *

                                  ----------

                SECTION 1705 OF THE CUBAN DEMOCRACY ACT OF 1992

    SEC. 1705. SUPPORT FOR THE CUBAN PEOPLE.

        (a) * * *

               *       *       *       *       *       *       *

        (c) Exports of Medicines and Medical Supplies.--Exports of
    medicines or medical supplies, instruments, or equipment to
    Cuba shall not be restricted--
                (1) except to the extent such restrictions would be
            permitted under section [5(m) of the Export
            Administration Act of 1979] 204(a) of the Export
            Administration Act of 2001 or section 203(b)(2) of the
            International Emergency Economic Powers Act;

               *       *       *       *       *       *       *

                                  ----------

                      IRAN AND LIBYA SANCTIONS ACT OF 1996

    SEC. 6. DESCRIPTION OF SANCTIONS.

        The sanctions to be imposed on a sanctioned person under
    section 5 are as follows:
                (1) * * *
                (2) Export sanction.--The President may order the
            United States Government not to issue any specific
            license and not to grant any other specific permission
            or authority to export any goods or technology to a
            sanctioned person under--
                        (i) the Export Administration Act of [1979]
                    2001;
                        (ii) the Arms Export Control Act;

               *       *       *       *       *       *       *

    SEC. 8. TERMINATION OF SANCTIONS.

        (a) Iran.--The requirement under section 5(a) to impose
    sanctions shall no longer have force or effect with respect to
    Iran if the President determines and certifies to the
    appropriate congressional committees that Iran--
                (1) * * *
                (2) has been removed from the list of countries the
            governments of which have been determined, for purposes
            of section [6(j) of the Export Administration Act of
            1979] 310 of the Export Administration Act of 2001, to
            have repeatedly provided support for acts of
            international terrorism.

               *       *       *       *       *       *       *

    SEC. 14. DEFINITIONS.

        As used in this Act:
                (1) * * *

               *       *       *       *       *       *       *

                (3) Component part.--The term ``component part''
            has the meaning given that term in section 11A(e)(1) of
            the Export Administration Act of 1979 [(50 U.S.C. App.
            2410a(e)(1))] (as in effect on August 20, 2001).

               *       *       *       *       *       *       *

                (6) Finished product.--The term ``finished
            product'' has the meaning given that term in section
            11A(e)(2) of the Export Administration Act of 1979 [(50
            U.S.C. App. 2410a(e)(2))] (as in effect on August 20,
            2001).

               *       *       *       *       *       *       *

                (8) Goods and technology.--The terms ``goods'' and
            ``technology'' have the meanings given those terms in
            section 16 of the Export Administration Act of 1979
            [(50 U.S.C. App. 2415)] (as in effect on August 20,
            2001).

               *       *       *       *       *       *       *

                                  ----------

                 SECTION 1133 OF THE FOOD SECURITY ACT OF 1985

               contract sanctity and producer embargo protection

        Sec. 1133. (a) It is hereby declared to be the policy of
    the United States--
                (1) * * *

               *       *       *       *       *       *       *

                (3) that any prohibition or limitation on the
            export of such commodities or porducts should be
            imposed only in time of a national emergency declared
            by the President under the [Export Administration Act]
            International Emergency Economic Powers Act or in time
            of war under the Trading with the Enemy Act; and

               *       *       *       *       *       *       *

                                  ----------

    SECTION 208 OF THE AGRICULTURAL TRADE SUSPENSION ADJUSTMENT ACT OF 1980

                           trade suspension reserves

    Sec. 208. Notwithstanding any other provision of law--
    (a) Whenever the President or other member of the executive
    branch of Government causes the export of any agricultural
    commodity to any country or area of the world to be suspended
    or restricted [for reasons of national security or foreign
    policy under the Export Administration Act of 1979] under title
    II or III of the Export Administration Act of 2001 or any other
    provision of law and the Secretary of Agriculture determines
    that such suspension or restriction will result in a surplus
    supply of such commodity that will adversely affect prices
    producers receive for the commodity, the Secretary may
    establish a gasohol feedstock reserve or a food security
    reserve, or both, of the commodity, as provided in subsection
    (c) and (d) of this section, if the commodity is suitable for
    stockpiling in a reserve.

               *       *       *       *       *       *       *

                                  ----------

               SECTION 411 OF THE AGRICULTURAL TRADE ACT OF 1978

    SEC. 411. AGRICULTURAL EMBARGO PROTECTION.

        (a) Prerequisites; Scope of Compensation.--Notwithstanding
    any other provision of law, if--
                (1) the President or other member of the executive
            branch of the Federal Government causes the export of
            any agricultural commodity to any country or area of
            the world to be suspended or restricted [for reasons of
            national security or foreign policy under the Export
            Administration Act of 1979 (50 U.S.C. App. 2401 et
            seq.)] under title II or III of the Export
            Administration Act of 2001 or under any other provision
            of law;

               *       *       *       *       *       *       *

                                  ----------

             SECTION 302 OF THE BILL EMERSON HUMANITARIAN TRUST ACT

    SEC. 302. ESTABLISHMENT OF COMMODITY TRUST.

        (a) * * *

               *       *       *       *       *       *       *

        (e) Treatment of Trust Under Other Law.--Eligible
    commodities in the trust established under this section [shall
    not be--
                [(1) considered] shall not be considered a part of
            the total domestic supply (including carryover) for the
            purpose of subsection (c) or for the purpose of
            administering the Agricultural Trade Development and
            Assistance Act of 1954 (7 U.S.C. 1691 et seq.)[; and]
                [(2) subject to any quantitative limitation on
            exports that may be imposed under section 7 of the
            Export Administration Act of 1979 (50 U.S.C. App.
            2406)].

               *       *       *       *       *       *       *

                                  ----------

                 SECTION 233 OF THE TRADE EXPANSION ACT OF 1962

    SEC. 233. IMPORT SANCTIONS FOR EXPORT VIOLATIONS.

        Any person who violates any national security export
    control imposed under section 5 of the Export Administration
    Act of 1979 [(50 U.S.C. App. 2404),](as in effect prior to its
    repeal by the Export Administration Act of 2001), any export
    control imposed under title II of the Export Administration Act
    of 2001, or any regulation, order, or license issued under
    [that section] either such section, may be subject to such
    controls on the importing of goods or technology into the
    United States as the President may prescribe.
                                  ----------

                      SECTION 502 OF THE TRADE ACT OF 1974

    SEC. 502. DESIGNATION OF BENEFICIARY DEVELOPING COUNTRIES.

        (a) * * *
        (b) Countries Ineligible for Designation.--
                (1) * * *
                (2) Other bases for ineligibility.--The President
            shall not designate any country a beneficiary
            developing country under this title if any of the
            following applies:
                        (A) * * *

               *       *       *       *       *       *       *

                        (F) Such country aids or abets, by granting
                    sanctuary from prosecution to, any individual
                    or group which has committed an act of
                    international terrorism or the Secretary of
                    State makes a determination with respect to
                    such country under section [6(j)(1)(A) of the
                    Export Administration Act of 1979] 310(a)(1) of
                    the Export Administration Act of 2001.

               *       *       *       *       *       *       *

                                  ----------

                SECTION 133 OF THE URUGUAY ROUND AGREEMENTS ACT

    SEC. 133. MEMBERSHIP IN WTO OF BOYCOTTING COUNTRIES.

        It is the sense of the Congress that the Trade
    Representative should vigorously oppose the admission into the
    World Trade Organization of any country which, through its
    laws, regulations, official policies, or governmental
    practices, fosters, imposes, complies with, furthers, or
    supports any boycott described in [section 8(a) of the Export
    Administration Act of 1979 (50 U.S.C. App. 2407(a)) (as in
    effect on August 20, 1994)] section 502 of the Export
    Administration Act of 2001, including requiring or encouraging
    entities within that country to refuse to do business with
    persons who do not comply with requests to take any action
    prohibited under that section.
                                  ----------

                         INTERNAL REVENUE CODE OF 1986

               *       *       *       *       *       *       *
                            Subtitle A--Income Taxes

               *       *       *       *       *       *       *

                     CHAPTER 1--NORMAL TAXES AND SURTAXES

               *       *       *       *       *       *       *

     Subchapter N--Tax Based on Income from Sources Within or Without the
                                 United States

               *       *       *       *       *       *       *

            PART III--INCOME FROM SOURCES WITHOUT THE UNITED STATES

               *       *       *       *       *       *       *

                         Subpart A--Foreign tax credit

               *       *       *       *       *       *       *

    SEC. 901. TAXES OF FOREIGN COUNTRIES AND OF POSSESSIONS OF UNITED
                        STATES.

        (a) * * *

               *       *       *       *       *       *       *

        (j) Denial of Foreign Tax Credit, Etc., With Respect to
    Certain Foreign Countries.--
                (1) * * *
                (2) Countries to which subsection applies.--
                        (A) In general.--This subsection shall
                    apply to any foreign country--
                                (i) * * *

               *       *       *       *       *       *       *

                                (iv) which the Secretary of State
                            has, pursuant to section [6(j) of the
                            Export Administration Act of 1979, as
                            amended] 310 of the Export
                            Administration Act of 2001, designated
                            as a foreign country which repeatedly
                            provides support for acts of
                            international terrorisms.

               *       *       *       *       *       *       *

               Subpart C--Taxation of Foreign Sales Corporations

               *       *       *       *       *       *       *

    SEC. 927. OTHER DEFINITIONS AND SPECIAL RULES.

        (a) Export Property.--For purposes of this subpart--
                (1) * * *
                (2) Excluded property.--The term ``export
            property'' shall not include--
                        (A) * * *

               *       *       *       *       *       *       *

                        (C) oil or gas (or any primary product
                    thereof), or
                        [(D) products the export of which is
                    prohibited or curtailed to effectuate the
                    policy set forth in paragraph (2)(C) of section
                    3 of the Export Administration Act of 1979
                    (relating to the protection of the domestic
                    economy), or]
                        [(E)] (D) any unprocessed timber which is a
                    softwood.
            For purposes of subparagraph [(E)] (D), the term
            ``unprocessed timber'' means any log, cant, or similar
            form of timber.

               *       *       *       *       *       *       *

                  Subpart E--Qualifying Foreign Trade Income

               *       *       *       *       *       *       *

    SEC. 943. OTHER DEFINITIONS AND SPECIAL RULES.

        (a) Qualifying Foreign Trade Property.--For purposes of
    this subpart--
                (1) * * *

               *       *       *       *       *       *       *

                (3) Excluded property.--The term ``qualifying
            foreign trade property'' shall not include--
                        (A) * * *

               *       *       *       *       *       *       *

                        (C) oil or gas (or any primary product
                    thereof), or
                        [(D) products the transfer of which is
                    prohibited or curtailed to effectuate the
                    policy set forth in paragraph (2)(C) of section
                    3 of Public Law 96-72, or]
                        [(E)] (D) any unprocessed timber which is a
                    softwood.
            For purposes of subparagraph [(E)] (D), the term
            ``unprocessed timber'' means any log, cant, or similar
            form of timber.

               *       *       *       *       *       *       *

              PART IV--DOMESTIC INTERNATIONAL SALES CORPORATIONS

               *       *       *       *       *       *       *

                Subpart A--Treatment of Qualifying Corporations

               *       *       *       *       *       *       *

    SEC. 993. DEFINITIONS.

        (a) * * *

               *       *       *       *       *       *       *

        (c) Export Property.--
                (1) * * *
                (2) Excluded property.--For purposes of this part,
            the term ``export property'' does not include--
                        (A) * * *

               *       *       *       *       *       *       *

                        (C) products of a character with respect to
                    which a deduction for depletion is allowable
                    (including oil, gas, coal, or uranium products)
                    under section 613 or 613A, or
                        [(D) products the export of which is
                    prohibited or curtailed under section 7(a) of
                    the Export Administration Act of 1979 to
                    effectuate the policy set forth in paragraph
                    (2)(C) of section 3 of such Act (relating to
                    the protection of the domestic economy), or]
                        [(E)] (D) any unprocessed timber which is a
                    softwood.
            Subparagraph (C) shall not apply to any commodity or
            product at least 50 percent of the fair market value of
            which is attributable to manufacturing or processing,
            except that subparagraph (C) shall apply to any primary
            product from oil, gas, coal, or uranium. For purposes
            of the preceding sentence, the term ``processing'' does
            not include extracting or handling, packing, packaging,
            grading, storing, or transporting. For purposes of
            subparagraph [(E)] (D), the term ``unprocessed timber''
            means any log, cant, or similar form of timber.

               *       *       *       *       *       *       *

                                  ----------

               SECTION 721 OF THE DEFENSE PRODUCTION ACT OF 1950

        authority to review certain mergers, acquisitions, and takeovers

        Sec. 721. (a) * * *

               *       *       *       *       *       *       *

        (f) Factors To Be Considered.--For purposes of this
    section, the President or the President's designee may, taking
    into account the requirements of national security, consider
    among other factors--
                (1) * * *

               *       *       *       *       *       *       *

                (4) the potential effects of the proposed or
            pending transaction on sales of military goods,
            equipment, or technology to any country--
                        (A) identified by the Secretary of State--
                                (i) under section [6(j) of the
                            Export Administration Act of 1979] 310
                            of the Export Administration Act of
                            2001, as a country that supports
                            terrorism;
                                (ii) under [section 6(l) of the
                            Export Administration Act of 1979] the
                            Export Administration Act of 2001, as a
                            country of concern regarding missile
                            proliferation; or
                                (iii) under [section 6(m) of the
                            Export Administration Act of 1979] the
                            Export Administration Act of 2001, as a
                            country of concern regarding the
                            proliferation of chemical and
                            biological weapons; or

               *       *       *       *       *       *       *

                                  ----------

    SECTION 275 OF THE NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEARS
                                 1988 AND 1989

    SEC. 275. EXPORT OF SEMICONDUCTOR MANUFACTURING

      Any export of materials, equipment, and technology developed
    by Sematech in whole or in part with financial assistance
    provided under section 272(a) shall be subject to the Export
    Administration Act of [1979 (50 U.S.C. App. 2401 et seq.)] 2001
    and shall not be subject to the Arms Export Control Act.
                                  ----------

                  SECTION 1605 OF TITLE 28, UNITED STATES CODE

    Sec. 1605. General exceptions to the jurisdictional immunity of a
                        foreign state

        (a) A foreign state shall not be immune from the
    jurisdiction of courts of the United States or of the States in
    any case--
                (1) * * *

               *       *       *       *       *       *       *

                (7) not otherwise covered by paragraph (2), in
            which money damages are sought against a foreign state
            for personal injury or death that was caused by an act
            of torture, extrajudicial killing, aircraft sabotage,
            hostage taking, or the provision of material support or
            resources (as defined in section 2339A of title 18) for
            such an act if such act or provision of material
            support is engaged in by an official, employee, or
            agent of such foreign state while acting within the
            scope of his or her office, employment, or agency,
            except that the court shall decline to hear a claim
            under this paragraph--
                        (A) if the foreign state was not designated
                    as a state sponsor of terrorism under [section
                    6(j) of the Export Administration Act of 1979
                    (50 U.S.C. App. 2405(j))] section 310 of the
                    Export Administration Act of 2001 or section
                    620A of the Foreign Assistance Act of 1961 (22
                    U.S.C. 2371) at the time the act occurred,
                    unless later so designated as a result of such
                    act; and

               *       *       *       *       *       *       *

                                  ----------

          SECTION 1621 OF THE INTERNATIONAL FINANCIAL INSTITUTIONS ACT

    SEC. 1621. OPPOSITION TO ASSISTANCE BY INTERNATIONAL FINANCIAL
                        INSTITUTIONS TO TERRORIST STATES.

        (a) In General.--The Secretary of the Treasury shall
    instruct the United States executive director of each
    international financial institution to use the voice and vote
    of the United States to oppose any loan or other use of the
    funds of the respective institution to or for a country for
    which the Secretary of State has made a determination under
    [section 6(j) of the Export Administration Act of 1979 (50
    U.S.C. App. 2405(j))] section 310 of the Export Administration
    Act of 2001 or section 620A of the Foreign Assistance Act of
    1961 (22 U.S.C. 2371).

               *       *       *       *       *       *       *

                                  ----------

         FOREST RESOURCES CONSERVATION AND SHORTAGE RELIEF ACT OF 1990

                    TITLE IV--EXPORTS OF UNPROCESSED TIMBER

               *       *       *       *       *       *       *

    SEC. 487. SHORT TITLE.

        This title may be cited as 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)).]

               *       *       *       *       *       *       *

    [SEC. 499. AUTHORITY OF EXPORT ADMINISTRATION ACT OF 1979.

        [Nothing in this title shall be construed to--
                [(1) prejudice the outcome of pending or
            prospective petitions filed under, or
                [(2) warrant the exercise of the authority
            contained in,
    section 7 of the Export Administration Act of 1979 with respect
    to the export of unprocessed timber.]

               *       *       *       *       *       *       *

                                  ----------

    SECTION 904 OF THE TRADE SANCTIONS REFORM AND EXPORT ENHANCEMENT ACT OF
                                      2000

    SEC. 904. EXCEPTIONS.

        Section 903 shall not affect any authority or requirement
    to impose (or continue to impose) a sanction referred to in
    section 903--
                (1) * * *
                (2) to the extent that the sanction would prohibit,
            restrict, or condition the provision or use of any
            agricultural commodity, medicine, or medical device
            that is--
                        (A) * * *
                        (B) controlled on any control list
                    established under the [Export Administration
                    Act of 1979] Export Administration Act of 2001
                    or any successor statute (50 U.S.C. App. 2401
                    et seq.); or

               *       *       *       *       *       *       *

                                  ----------

            NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1998

               *       *       *       *       *       *       *

                DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

               *       *       *       *       *       *       *

                  TITLE XII--MATTERS RELATING TO OTHER NATIONS

               *       *       *       *       *       *       *

           [Subtitle B--Export Controls on High Performance Computers

    [SEC. 1211. EXPORT APPROVALS FOR HIGH PERFORMANCE COMPUTERS.

        [(a) Prior Approval of Exports and Reexports.--The
    President shall require that no digital computer with a
    composite theoretical performance level of more than 2,000
    millions of theoretical operations per second (MTOPS) or with
    such other composite theoretical performance level as may be
    established subsequently by the President under subsection (d),
    may be exported or reexported without a license to a country
    specified in subsection (b) if the Secretary of Commerce, the
    Secretary of Defense, the Secretary of Energy, the Secretary of
    State, or the Director of the Arms Control and Disarmament
    Agency objects, in writing, to such export or reexport. Any
    person proposing to export or reexport such a digital computer
    shall so notify the Secretary of Commerce, who, within 24 hours
    after receiving the notification, shall transmit the
    notification to the Secretary of Defense, the Secretary of
    Energy, the Secretary of State, and the Director of the Arms
    Control and Disarmament Agency.
        [(b) Covered Countries.--For purposes of subsection (a),
    the countries specified in this subsection are the countries
    listed as ``Computer Tier 3'' eligible countries in section
    740.7(d) of title 15 of the Code of Federal Regulations, as in
    effect on June 10, 1997, subject to modification by the
    President under subsection (e).
        [(c) Time Limit.--Written objections under subsection (a)
    to an export or reexport shall be raised within 10 days after
    the notification is received under subsection (a). If such a
    written objection to the export or reexport of a computer is
    raised, the computer may be exported or reexported only
    pursuant to a license issued by the Secretary of Commerce under
    the Export Administration Regulations of the Department of
    Commerce, without regard to the licensing exceptions otherwise
    authorized under section 740.7 of title 15 of the Code of
    Federal Regulations, as in effect on June 10, 1997. If no
    objection is raised within the 10-day period, the export or
    reexport is authorized.
        [(d) Adjustment of Composite Theoretical Performance.--The
    President, in consultation with the Secretary of Commerce, the
    Secretary of Defense, the Secretary of Energy, the Secretary of
    State, and the Director of the Arms Control and Disarmament
    Agency, may establish a new composite theoretical performance
    level for purposes of subsection (a). Such new level shall not
    take effect until 60 days after the President submits to the
    congressional committees designated in section 1215 a report
    setting forth the new composite theoretical performance level
    and the justification for such new level. Each report shall, at
    a minimum--
                [(1) address the extent to which high performance
            computers of a composite theoretical level between the
            level established in subsection (a) or such level as
            has been previously adjusted pursuant to this section
            and the new level, are available from other countries;
                [(2) address all potential uses of military
            significance to which high performance computers at the
            new level could be applied; and
                [(3) assess the impact of such uses on the national
            security interests of the United States.
        [(e) Adjustment of Covered Countries.--
                [(1) In general.--The President, in consultation
            with the Secretary of Commerce, the Secretary of
            Defense, the Secretary of Energy, the Secretary of
            State, and the Director of the Arms Control and
            Disarmament Agency, may add a country to or remove a
            country from the list of covered countries in
            subsection (b), except that a country may be removed
            from the list only in accordance with paragraph (2).
                [(2) Deletions from list of covered countries.--The
            removal of a country from the list of covered countries
            under subsection (b) shall not take effect until 120
            days after the President submits to the congressional
            committees designated in section 1215 a report setting
            forth the justification for the deletion.
                [(3) Excluded countries.--A country may not be
            removed from the list of covered countries under
            subsection (b) if--
                        [(A) the country is a ``nuclear-weapon
                    state'' (as defined by Article IX of the Treaty
                    on the Non-Proliferation of Nuclear Weapons)
                    and the country is not a member of the North
                    Atlantic Treaty Organization; or
                        [(B) the country is not a signatory of the
                    Treaty on the Non-Proliferation of Nuclear
                    Weapons and the country is listed on Annex 2 to
                    the Comprehensive Nuclear Test-Ban Treaty.
        [(f) Classification.--Each report under subsections (d) and
    (e) shall be submitted in an unclassified form and may, if
    necessary, have a classified supplement.
        [(g) Delegation of Objection Authority Within the
    Department of Defense.--For the purposes of the Department of
    Defense, the authority to issue an objection referred to in
    subsection (a) shall be executed for the Secretary of Defense
    by an official at the Assistant Secretary level within the
    office of the Under Secretary of Defense for Policy. In
    implementing subsection (a), the Secretary of Defense shall
    ensure that Department of Defense procedures maximize the
    ability of the Department of Defense to be able to issue an
    objection within the 10-day period specified in subsection (c).
        [(h) Calculation of 60-Day Period.--The 60-day period
    referred to in subsection (d) shall be calculated by excluding
    the days on which either House of Congress is not in session
    because of an adjournment of the Congress sine die.

    [SEC. 1212. REPORT ON EXPORTS OF HIGH PERFORMANCE COMPUTERS.

        [(a) Report.--Not later than 60 days after the date of the
    enactment of this Act, the President shall provide to the
    congressional committees specified in section 1215 a report
    identifying all exports of digital computers with a composite
    theoretical performance of more than 2,000 millions of
    theoretical operations per second (MTOPS) to all countries
    since January 25, 1996. For each export, the report shall
    identify--
                [(1) whether an export license was applied for and
            whether one was granted;
                [(2) the date of the transfer of the computer;
                [(3) the United States manufacturer and exporter of
            the computer;
                [(4) the MTOPS level of the computer; and
                [(5) the recipient country and end user.
        [(b) Additional Information on Exports to Certain
    Countries.--In the case of exports to countries specified in
    subsection (c), the report under subsection (a) shall identify
    the intended end use for the exported computer and the
    assessment by the executive branch of whether the end user is a
    military end user or an end user involved in activities
    relating to nuclear, chemical, or biological weapons or missile
    technology. Information provided under this subsection may be
    submitted in classified form if necessary.
        [(c) Covered Countries.--For purposes of subsection (b),
    the countries specified in this subsection are--
                [(1) the countries listed as ``Computer Tier 3''
            eligible countries in section 740.7(d) of title 15 of
            the Code of Federal Regulations, as in effect on June
            10, 1997; and
                [(2) the countries listed in section 740.7(e) of
            title 15 of the Code of Federal Regulations, as in
            effect on June 10, 1997.

    [SEC. 1213. POST-SHIPMENT VERIFICATION OF EXPORT OF HIGH PERFORMANCE
                        COMPUTERS.

        [(a) Required Post-Shipment Verification.--The Secretary of
    Commerce shall conduct post-shipment verification of each
    digital computer with a composite theoretical performance of
    more than 2,000 millions of theoretical operations per second
    (MTOPS) that is exported from the United States, on or after
    the date of the enactment of this Act, to a country specified
    in subsection (b).
        [(b) Covered Countries.--For purposes of subsection (a),
    the countries specified in this subsection are the countries
    listed as ``Computer Tier 3'' eligible countries in section
    740.7 of title 15 of the Code of Federal Regulations, as in
    effect on June 10, 1997, subject to modification by the
    President under section 1211(e).
        [(c) Annual Report.--The Secretary of Commerce shall submit
    to the congressional committees specified in section 1215 an
    annual report on the results of post-shipment verifications
    conducted under this section during the preceding year. Each
    such report shall include a list of all such items exported
    from the United States to such countries during the previous
    year and, with respect to each such export, the following:
                [(1) The destination country.
                [(2) The date of export.
                [(3) The intended end use and intended end user.
                [(4) The results of the post-shipment verification.
        [(d) Explanation When Verification Not Conducted.--If a
    post-shipment verification has not been conducted in accordance
    with subsection (a) with respect to any such export during the
    period covered by a report, the Secretary shall include in the
    report for that period a detailed explanation of the reasons
    why such a post-shipment verification was not conducted.
        [(e) Adjustment of Performance Levels.--Whenever a new
    composite theoretical performance level is established under
    section 1211(d), that level shall apply for purposes of
    subsection (a) of this section in lieu of the level set forth
    in subsection (a).

    [SEC. 1214. GAO STUDY ON CERTAIN COMPUTERS; END USER INFORMATION
                        ASSISTANCE.

        [(a) In General.--The Comptroller General of the United
    States shall submit to the congressional committees specified
    in section 1215 a study of the national security risks relating
    to the sale of computers with a composite theoretical
    performance of between 2,000 and 7,000 millions of theoretical
    operations per second (MTOPS) to end users in countries
    specified in subsection (c). The study shall also analyze any
    foreign availability of computers described in the preceding
    sentence and the impact of such sales on United States
    exporters.
        [(b) End User Information Assistance to Exporters.--The
    Secretary of Commerce shall establish a procedure by which
    exporters may seek information on questionable end users in
    countries specified in subsection (c) who are seeking to obtain
    computers described in subsection (a).
        [(c) Covered Countries.--For purposes of subsections (a)
    and (b), the countries specified in this subsection are the
    countries listed as ``Computer Tier 3'' eligible countries in
    section 740.7(d) of title 15 of the Code of Federal
    Regulations, as in effect on June 10, 1997.

    [SEC. 1215. CONGRESSIONAL COMMITTEES.

        [For purposes of sections 1211(d), 1212(a), 1213(c), and
    1214(a) the congressional committees specified in those
    sections are the following:
                [(1) The Committee on Banking, Housing, and Urban
            Affairs and the Committee on Armed Services of the
            Senate.
                [(2) The Committee on International Relations and
            the Committee on Armed Services of the House of
            Representatives.]

               *       *       *       *       *       *       *

                                Dissenting Views

        In the wake of the horrific attacks against America on
    September 11, 2001, it is more important than ever that this
    Committee produce legislation that protects U.S. national
    security while maintaining U.S. competitiveness. We are very
    concerned that the bill reported by the House International
    Relations Committee does neither. Instead, it undoes the
    carefully crafted framework of the Export Administration Act of
    2001, which together we introduced as H.R. 2557 and which the
    Senate passed by a vote of 85-14. The Committee-passed bill
    creates a cumbersome system that will result in nothing less
    than gridlock in our export control system at the worst
    possible time.
        During markup, the Committee included nearly three dozen
    amendments, many of them passed en bloc as ``technical.'' But
    virtually all of these amendments will substantively hinder the
    President's flexibility to impose export controls, overwhelm
    export control procedures, and create uncertainty and
    unpredictability for exporters--all without enhancing national
    security.
        Ironically, despite the best intentions of the amendments'
    distinguished sponsors, the bill as passed in Committee would
    only serve to diminish US global military dominance because it
    would stifle the competitiveness of the very US industries that
    America's military depends upon to maintain its technological
    edge. Specifically, the bill as reported by the Committee:

             Limits the President's flexibility by
            mandating a presumption of denial for an open-ended
            range of exported items, harming the President's
            discretion to make critical decisions and forcing
            exporters to prove innocence before engaging in trade--
            which among other things, runs counter to American
            judicial philosophy.

             Lowers the threshold for controlling items,
            greatly diminishing discipline on, and accountability
            of, imposition of controls without adding any national
            security benefit.

             Adds unnecessary complexity and delay to an
            already excessively slow system by requiring that all
            mass-market and foreign availability determinations go
            through another extensive interagency process, and
            establishes departmental quotas, rather than expertise,
            for technical evaluation personnel.

             Confuses the technical exercise of commodity
            classification with policy decision-making, and invites
            chaos by applying a totally inappropriate interagency
            dispute resolution process to the commodity
            classification process--all of which is unnecessary in
            light of the Administration's announced plans to revise
            current classification guidelines.

             Decreases the disciplines for foreign policy
            controls, reducing accountability and transparency in
            the process of setting and maintaining such controls.

             Adds an unnecessary layer of bureaucracy to
            the licensing process by requiring the involvement of
            agencies that traditionally have not been involved in
            all licensing processes.

             Undermines efforts to maintain accountability
            and streamline bureaucracy by increasing the ability of
            agencies to indefinitely delay license applications--an
            amendment overwhelmingly rejected (74-19) by the
            Senate.

        It is no accident that the Administration has refused to
    endorse the Committee legislation. Instead, the
    Administration's national security and economic team has
    reiterated its support for the Export Administration Act of
    2001. On September 3, Secretary of State Colin Powell,
    Secretary of Defense Donald Rumsfeld, and Secretary of Commerce
    Donald Evans stated that the Export Administration Act of 2001
    ``will provide the President with the authority and flexibility
    he needs to administer a stronger, updated export control
    system . . .''
        National security and defense experts have warned Congress
    that ``feel good'' controls just don't work:

             Dr. Donald A. Hicks, Reagan Administration
            Under Secretary of Defense for Research & Engineering
            and Chairman of the Defense Science Board Task Force on
            Globalization and Security stated in February 2001
            testimony: ``The Cold War's end . . . points to the
            utter futility of the U.S. attempting to control
            unilaterally technologies, products and services that
            even its closest allies are releasing onto the world
            market.''

             Dr. John J. Hamre, former Deputy Secretary of
            Defense and currently President and Chief Executive
            Officer of the Center for Strategic & International
            Studies testified in February 2001 that ``America needs
            effective export controls to protect its national
            security. Our current system of export controls fails
            that test--fails badly . . . In demanding to put a
            stamp on every export transaction, then ultimately
            approving 99.4% of the requests, we are not really
            protecting our security. In fact, we're diverting
            resources from protecting the most important technology
            and products.''

             Frank C. Carlucci, former Secretary of
            Defense, former National Security Advisor, and Chairman
            of Nortel Networks stated in June 1999: ``We need to
            staunch the flow of technology to those who would harm
            us. But we should do only that which has an effect, not
            that which simply makes us feel good. Many technologies
            are uncontrollable given the access of the Internet;
            others can and will be supplied by our competitors . .
            . [Congress'] job . . . is to strike the right
            balance--don't help our enemies but at the same time
            allow innovation and research to flourish.''

             Rep. Chris Cox, Chairman of the Cox
            Committee, formally known as the Select Committee on
            U.S. National Security and Military/Commercial Concerns
            with the People's Republic of China, said in June 1999
            testimony that ``We ought not to have export controls
            to pretend to make ourselves safe as a country. We
            ought to have export controls that work. And you have
            to assume that if the Ministry of State Security in the
            People's Republic of China can gain access to the
            computers at Los Alamos, they can probably gain access
            to a Radio Shack in Europe.''

        In fact, defense experts have testified that maintaining
    controls on widely available items could seriously damage the
    U.S. military and harm national security. The Defense Science
    Board Task Force on Globalization and Security, which Dr. Hicks
    chaired, concluded in 1999 that:

             ``DOD is relying increasingly on the U.S.
            commercial advanced technology sector to push the
            technological envelope and enable the Department to
            ``run faster'' than its competitors. DOD is not a large
            enough customer, however, to keep the U.S. high-tech
            sector vibrant. Exports are now the key to growth and
            good health . . . If U.S. high-tech exports are
            restricted in any significant manner, it could well
            have a stifling effect on the U.S. military's rate of
            technological advancement.''

             ``[S]hutting U.S. companies out of markets
            served instead by foreign firms could inhibit the
            competitiveness of the U.S. commercial advanced
            technology and defense sectors upon which U.S. economic
            security and military-technical advantage depend.''

             ``If the United States responds to what some
            parochially and inaccurately view as preventable
            hemorrhaging of U.S. advanced technology . . . by
            unilaterally tightening controls on high-tech exports
            to states such as China, new competitors in Taiwan,
            Korea, Japan, and Europe can be expected to move
            quickly to fill the market void . . . [T]he losers will
            be U.S. industry, whose technological and market
            leadership will face new challenges, and DOD, whose
            access to the world's most advanced technologies will
            be at the very least complicated, and perhaps
            compromised, by virtue of their being developed and
            produced by non-US firms.''

             ``Protection of capabilities and technologies
            readily available on the world market is, at best,
            unhelpful to the maintenance of military dominance and,
            at worst, counterproductive (e.g., by undermining the
            industry upon which U.S. military-technological
            supremacy depends) . . . DOD must put up higher walls
            around a much smaller group of capabilities and
            technologies.''

        Unfortunately, the Committee-passed bill flies in the face
    of these recommendations. In sum, the Committee mark does
    nothing to promote U.S. national security, while actively
    threatening U.S. competitiveness--at the worst possible time.

      Protecting Americans & Enhancing U.S. Prosperity and Competitiveness

        In sharp contrast to the Committee-passed bill, H.R. 2557,
    the Export Administration Act of 2001, will achieve these
    important goals. This bipartisan, carefully crafted legislation
    replaces the old Cold War export control regime with a modern,
    effective framework that promotes both U.S. national security
    and U.S. competitiveness by building a higher fence around a
    smaller number of truly sensitive items. The bill will ensure
    that during the war on terrorism, the President will have full
    flexibility to react swiftly and with full authority, while at
    the same time providing important economic stimulus to keep the
    U.S. economy moving forward. Like its Senate companion, which
    was approved overwhelmingly (85-14) by the Senate on September
    6, H.R. 2557 meets the dual challenges of protecting Americans
    and stimulating the economy.
        H.R. 2557, the Export Administration Act of 2001, is
    designed to protect Americans while enhancing U.S. prosperity
    and competitiveness. First, the legislation protects Americans.
    Endorsed by our commander-in-chief and his national security
    team, the Export Administration Act provides unprecedented
    authority to the President to control exports for national
    security or foreign policy purposes. National Security Advisor
    Condoleezza Rice, Secretary of State Colin Powell, Secretary of
    Defense Donald Rumsfeld, and Secretary of Commerce Donald Evans
    unanimously agree that the bill will provide the President with
    the authority and flexibility he needs to administer a
    stronger, updated export control system.
        Second, the legislation ensures U.S. prosperity and
    competitiveness and provides an important stimulus to the U.S.
    economy during this difficult economic time. By removing
    ineffective controls on widely available items, the bill allows
    key U.S. industries to maintain their competitiveness (and
    their ability to provide critical technologies to the U.S.
    military). For example:

             The Computer Coalition For Responsible
            Exports (CCRE) noted that the Export Administration Act
            of 2001 was ``developed in cooperation with the Bush
            Administration and its national security team, is
            designed to modernize the export control system to
            effectively balance U.S. economic and national security
            interests.''

             AeA (formerly the American Electronics
            Association) stated that ``it is of the utmost
            importance to the nation's high-tech trade economy that
            [Congress] passes a new EAA . . . [B]oth the government
            and high-tech industries face harsh consequences if
            nothing is done to update export legislation. In
            addition to potential legal challenges to the
            reinstatement of IEEPA, there would be lost export
            opportunities and lost jobs for U.S. industry, and a
            failure to advance foreign policy goals for the U.S.
            government . . . The president and the people
            understand the importance of technology trade in modern
            society; now it is time for Congress to come forward
            and recognize the new world.''

             The Electronic Industry Association (EIA)
            noted that the current regime ``is more harmful than
            helpful to U.S. national security interests and is
            slow, cumbersome, and generally disadvantageous to the
            U.S. high-tech community vis-a-vis our competitors
            abroad. A renewed and revised Export Administration Act
            (EAA) offers an opportunity to bring the export control
            regime into greater alignment with global and
            technological realities. A promising approach to EAA
            renewal--one that strikes an acceptable balance between
            national security and global commerce--is . . . the
            Export Administration Act of 2001.

                               Fighting Terrorism

        Export control authority represents one of the critical
    Presidential sanctions authorities designed to respond to
    terrorism. The export control framework established by H.R.
    2557 would allow the President maximum flexibility to impose
    critical national security or foreign policy export controls to
    respond quickly and effectively to threats to U.S. interests as
    he sees fit. Moreover, the bill contains critical provisions
    designed specifically to address terrorism. For example:

             Section 201 authorizes the President to
            impose export controls for national security purposes--
            including and especially to ``deter acts of
            international terrorism.''

             Section 301 authorizes the imposition of
            export controls for foreign policy purposes--
            specifically 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.''

             Section 310 explicitly provides the President
            with the ability to control items, notwithstanding any
            other provision of the bill, to address governments
            that are determined to be supporters of international
            terrorism (specifically, to prevent exports of items
            that ``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'').

             Section 503 significantly enhances criminal
            and civil penalties for export control violations above
            current levels, with criminal fine of up to $1 million
            or 10 times the value of the exports for individual
            violations, and up to $5 million or 10 times the value
            of the exports for corporate violations.

             Sections 504 and 505 reauthorize both the
            current missile proliferation control and chemical and
            biological weapons control sanctions.

        The terrible events of September 11 make it all too clear
    that the President must have the tools he needs to fight
    terrorism. Because export controls are specifically designed to
    address terrorism, and will play a key role in any Presidential
    anti-terrorism initiative, immediate enactment of the Export
    Administration Act of 2001 would assure the President's ability
    to use export controls swiftly and with full statutory
    authority to address U.S. national security and foreign policy
    needs during the war against terrorism over the coming months
    and years.

                                    Urgency

        Enactment of H.R. 2557 is all the more critical given that
    the old Cold War export control statute--the Export
    Administration Act of 1979--expired on August 20, 2001. Without
    a new statutory regime in place, the President was forced to
    rely on executive authority to maintain our dual-use export
    control system. On August 17, President Bush therefore issued
    Executive Order 13222 (Continuation of Export Control
    Regulations). Stating that ``the unrestricted access of foreign
    parties to U.S. goods and technology and the existence of
    certain boycott practices of foreign nations, in light of the
    expiration of the Export Administration Act of 1979 . . .
    constitute an unusual and extraordinary threat to the national
    security, foreign policy, and economy of the United States,''
    the President declared a national emergency and invoked the
    International Emergency Economic Powers Act (IEEPA) to maintain
    the provisions of the 1979 Act and the regulations issued
    thereunder.
        Maintaining the export control system via IEEPA presents
    legal and substantive risks, particularly during this critical
    time. First, the continuation of export controls pursuant to
    IEEPA has been subject to a number of court challenges that,
    although unsuccessful to date, have raised questions about the
    viability of IEEPA as a long-term basis for the export control
    system. Second, an IEEPA-based export control regime impedes
    strong Executive enforcement of export controls, as it provides
    only minor penalties and limited authorization for arrests and
    search warrants.
        Passage of H.R. 2557 is essential if the President is to
    operate export controls on a sound footing. Congress must act
    swiftly to provide the President full statutory authority in
    this critical area. As National Security Advisor Condoleezza
    Rice noted on August 2, ``a new EAA will provide use the
    strongest authority to administer dual-use export controls,
    particularly as related to enforcement, penalties for export
    control violations, and the protection of business proprietary
    information.'' She then endorsed swift enactment of the Export
    Administration Act of 2001 (H.R. 2557/S. 149).

                       Strong Administration Endorsement

        The President and his national security team repeatedly
    have endorsed the Export Administration Act of 2001 (H.R. 2557/
    S. 149) and urged its swift passage.

             On March 28, the President told an audience
            that ``the Export Administration Act--a good bill--
            passed the Banking Committee 19-1 . . . And I urge the
            Senate to pass it quickly.''

             On May 8, the President said ``I'm pleased to
            report, the Senate Banking Committee passed a revised
            EAA, which my administration strongly supports. It's
            now time to pass it for the House, so I can sign it
            into law.''

             On August 2, National Security Advisor Rice
            expressed appreciation for scheduling the Export
            Administration Act of 2001 for consideration, and noted
            that the bill ``has the Administration's strong
            support.''

             On September 3, Secretary of State Colin
            Powell, Secretary of Defense Donald Rumsfeld, and
            Secretary of Commerce Donald Evans stated that the
            Export Administration Act of 2001 ``will provide the
            President with the authority and flexibility he needs
            to administer a stronger, updated export control system
            . . . President Bush strongly supports the bill as
            passed by the Senate Banking Committee and wants to
            move forward in this important area.''

                                    Summary

        As noted, H.R. 2557 establishes an effective, modern
    framework for dual-use export controls. It protects Americans
    and enhances U.S. prosperity and competitiveness by building a
    higher fence around a smaller number of truly sensitive items.
    Specifically, the bill contains the following provisions:

             Title I provides general authorities for the
            conduct of U.S. export control policies. Under this
            title, the Secretary of Commerce is authorized to
            identify items subject to export controls, and to
            establish and maintain a Commerce Control List
            consisting of items that, if exported to certain end-
            users or for certain end-uses, could jeopardize U.S.
            national security.

             Title II authorizes the President to impose
            export controls for national security purposes. The
            authority is vested in the President and exercised by
            the Secretary of Commerce, in consultation with the
            Secretary of Defense, the intelligence agencies, and
            other appropriate departments and agencies. Section 201
            retains the purpose set forth in the 1979 Act: to
            restrict the export of items that would contribute to
            the military potential of countries so as to prove
            detrimental to the national security of the United
            States. However, Section 201 expands this purpose in
            two important areas. First, it authorizes national
            security export controls to stem the proliferation of
            weapons of mass destruction and the means to deliver
            them. Second, it explicitly authorizes national
            security export controls to ``deter acts of
            international terrorism.''

             Section 201 also provides the President with
            two additional control authorities not previously
            codified in statute: authority to impose export
            controls based on the end-use or end-user of an item if
            that item could contribute to the proliferation of
            weapons of mass destruction or the means to deliver
            them; and authority to impose enhanced controls on
            items notwithstanding their status as incorporated
            components or as foreign-available or mass-market, if
            the President determines that removing controls would
            constitute a significant threat to U.S. national
            security.

             Title III authorizes the imposition of export
            controls for foreign policy purposes. This authority is
            vested in the President. Section 301 outlines the
            purposes for foreign policy controls: namely, to
            promote the foreign policy objectives of the United
            States; to promote international peace, stability, and
            respect for fundamental human rights; and 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.

             Sections 309 and 310 provide the President
            with the ability to control items, notwithstanding any
            other provision of the bill, for two critical reasons:
            to comply with international obligations and
            multilateral export control regime commitments, and to
            address governments that are determined to be
            supporters of international terrorism (specifically, to
            prevent exports of items that ``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'').

             Title IV outlines procedures for review of
            export license applications. Section 401 provides for
            the receipt and timely review of export license
            applications by the Department of Commerce and other
            appropriate agencies. Section 402 establishes an
            interagency dispute resolution process for disputed
            applications that provides for consideration of the
            views of all participating agencies, with an appeal
            process that ultimately may be escalated to the
            President for final determination.

             Title V sets forth provisions on multilateral
            export regimes, foreign boycotts, multilateral
            sanctions, and domestic enforcement. Section 501 of the
            bill encourages U.S. participation in multilateral
            export control regimes that support U.S. objectives.
            Section 502 recodifies the foreign boycott provisions
            of the 1979 Act.

             Section 503 significantly enhances criminal
            and civil penalties for export control violations above
            the levels set forth in the 1979 Act or in IEEPA. It
            subjects individuals to a criminal fine of up to $1
            million or 10 times the value of the exports for each
            violation, whichever is greater, for willfully
            violating or willfully conspiring to violate the
            provisions of the bill or any regulation issued
            thereunder. In addition, individuals may be imprisoned
            for a period of up to 10 years. Persons other than
            individuals (such as companies) may be fined up to $5
            million or 10 times the value of the export, whichever
            is greater, for each violation. In addition, the
            Secretary of Commerce may impose on a violator a
            maximum civil fine of $500,000 for each export control
            violation.

             Sections 504 and 505 reauthorize both the
            current missile proliferation control and chemical and
            biological weapons control sanctions. These sanctions
            serve as strong deterrents to U.S. or foreign persons
            who may knowingly transfer missile technology or lethal
            chemical or biological weapons to persons in violation
            of the Missile Technology Control regime guidelines, or
            to persons that the President has determined has
            directly engaged in the illegal use, transfer or
            preparation of chemical and biological weapons.

             Section 506 strengthens the enforcement tools
            of the Office of Export Enforcement of the Bureau of
            Export Administration, and provides additional
            authorizations for funding for the Bureau of Export
            Administration. Section 506 also terminates the
            authority granted under S. 149 on September 30, 2004,
            unless the President provides to Congress a detailed
            report on the operation of the Export Administration
            Act of 2001 and of U.S. export controls in general, and
            either submits to Congress legislative reform proposals
            in connection with that report or certifies to Congress
            that reforms in connection with that report are not
            necessary.

             Title VI provides for the implementation of
            the authorities granted under the bill. Section 601
            provides for the delegation of authority to the
            Secretary of Commerce and Under Secretary of Commerce
            for Export Administration, and authorizes the President
            and Secretary of Commerce to issue regulations to carry
            out the bill.

             Title VII contains miscellaneous provisions.
            Section 701 requires the Secretary to report annually
            to Congress regarding export controls. Section 702
            makes technical and conforming amendments. Among these
            amendments is a provision repealing certain sections of
            the fiscal year 1998 National Defense Authorization Act
            (NDAA) to allow the President full flexibility to
            establish the most effective measurement standard for
            the control of computer technologies.

        In closing, this Committee has a duty to the American
    people to report legislation that protects U.S. national
    security while maintaining U.S. competitiveness. The World
    Trade Center and Pentagon attacks made clear that such
    legislation is even more important today, as the President and
    Congress work together to fight terrorism. Strong and effective
    export control authority is a critical tool in the President's
    arsenal in this effort, and H.R. 2557 will give him the
    authority and flexibility he needs to enhance American security
    as well as the American economy. Unfortunately, the Committee-
    reported legislation does not fulfill these objectives. For
    this reason, we cannot give it our support.

                                       Robert Menendez.
                                       Earl Blumenauer.
                                       Jeff Flake.