[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.

                                  
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