2000 
[DOCID: f:s149rs.txt]





                                                        Calendar No. 26
107th CONGRESS
  1st Session
                                 S. 149

                          [Report No. 107-10]

    To provide authority to control exports, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 23, 2001

Mr. Enzi (for himself, Mr. Gramm, Mr. Sarbanes, Mr. Johnson, Mr. Hagel, 
    Mr. Roberts, Ms. Stabenow, Mr. Bayh, Mr. Bennett, Mr. Reid, Ms. 
 Cantwell, Mr. Bunning, and Mr. Crapo) introduced the following bill; 
which was read twice and referred to the Committee on Banking, Housing, 
                           and Urban Affairs

                             April 2, 2001

                Reported by Mr. Gramm, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
    To provide authority to control exports, and for other purposes.

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

<DELETED>SECTION 1. SHORT TITLE; TABLE OF CONTENTS.</DELETED>

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

<DELETED>Sec. 1. Short title; table of contents.
<DELETED>Sec. 2. Definitions.
                  <DELETED>TITLE I--GENERAL AUTHORITY

<DELETED>Sec. 101. Commerce Control List.
<DELETED>Sec. 102. Delegation of authority.
<DELETED>Sec. 103. Public information; consultation requirements.
<DELETED>Sec. 104. Right of export.
<DELETED>Sec. 105. Export control advisory committees.
<DELETED>Sec. 106. President's Technology Export Council.
<DELETED>Sec. 107. Prohibition on charging fees.
          <DELETED>TITLE II--NATIONAL SECURITY EXPORT CONTROLS

             <DELETED>Subtitle A--Authority and Procedures

<DELETED>Sec. 201. Authority for national security export controls.
<DELETED>Sec. 202. National Security Control List.
<DELETED>Sec. 203. Country tiers.
<DELETED>Sec. 204. Incorporated parts and components.
<DELETED>Sec. 205. Petition process for modifying export status.
    <DELETED>Subtitle B--Foreign Availability and Mass-Market Status

<DELETED>Sec. 211. Determination of foreign availability and mass-
                            market status.
<DELETED>Sec. 212. Presidential set-aside of foreign availability 
                            determination.
<DELETED>Sec. 213. Presidential set-aside of mass-market status 
                            determination.
<DELETED>Sec. 214. Office of Technology Evaluation.
           <DELETED>TITLE III--FOREIGN POLICY EXPORT CONTROLS

<DELETED>Sec. 301. Authority for foreign policy export controls.
<DELETED>Sec. 302. Procedures for imposing controls.
<DELETED>Sec. 303. Criteria for foreign policy export controls.
<DELETED>Sec. 304. Presidential report before imposition of control.
<DELETED>Sec. 305. Imposition of controls.
<DELETED>Sec. 306. Deferral authority.
<DELETED>Sec. 307. Review, renewal, and termination.
<DELETED>Sec. 308. Termination of controls under this title.
<DELETED>Sec. 309. Compliance with international obligations.
<DELETED>Sec. 310. Designation of countries supporting international 
                            terrorism.
 <DELETED>TITLE IV--EXEMPTION FOR AGRICULTURAL COMMODITIES, MEDICINE, 
                          AND MEDICAL SUPPLIES

<DELETED>Sec. 401. Exemption for agricultural commodities, medicine, 
                            and medical supplies.
<DELETED>Sec. 402. Termination of export controls required by law.
<DELETED>Sec. 403. Exclusions.
   <DELETED>TITLE V--PROCEDURES FOR EXPORT LICENSES AND INTERAGENCY 
                           DISPUTE RESOLUTION

<DELETED>Sec. 501. Export license procedures.
<DELETED>Sec. 502. Interagency dispute resolution process.
   <DELETED>TITLE VI--INTERNATIONAL ARRANGEMENTS; FOREIGN BOYCOTTS; 
                       SANCTIONS; AND ENFORCEMENT

<DELETED>Sec. 601. International arrangements.
<DELETED>Sec. 602. Foreign boycotts.
<DELETED>Sec. 603. Penalties.
<DELETED>Sec. 604. Multilateral export control regime violation 
                            sanctions.
<DELETED>Sec. 605. Missile proliferation control violations.
<DELETED>Sec. 606. Chemical and biological weapons proliferation 
                            sanctions.
<DELETED>Sec. 607. Enforcement.
<DELETED>Sec. 608. Administrative procedure.
      <DELETED>TITLE VII--EXPORT CONTROL AUTHORITY AND REGULATIONS

<DELETED>Sec. 701. Export control authority and regulations.
<DELETED>Sec. 702. Confidentiality of information.
             <DELETED>TITLE VIII--MISCELLANEOUS PROVISIONS

<DELETED>Sec. 801. Annual and periodic reports.
<DELETED>Sec. 802. Technical and conforming amendments.
<DELETED>Sec. 803. Savings provisions.

<DELETED>SEC. 2. DEFINITIONS.</DELETED>

<DELETED>     In this Act:</DELETED>
        <DELETED>    (1) Affiliate.--The term ``affiliate'' includes 
        both governmental entities and commercial entities that are 
        controlled in fact by the government of a country.</DELETED>
        <DELETED>    (2) Agriculture commodity.--The term ``agriculture 
        commodity'' means any agricultural commodity, food, fiber, or 
        livestock (including livestock, as defined in section 602(2) of 
        the Emergency Livestock Feed Assistance Act of 1988 (title VI 
        of the Agricultural Act of 1949 (7 U.S.C. 1471(2))), and 
        including insects), and any product thereof.</DELETED>
        <DELETED>    (3) Control or controlled.--The terms ``control'' 
        and ``controlled'' mean any requirement, condition, 
        authorization, or prohibition on the export or reexport of an 
        item.</DELETED>
        <DELETED>    (4) Control list.--The term ``Control List'' means 
        the Commerce Control List established under section 
        101.</DELETED>
        <DELETED>    (5) Controlled country.--The term ``controlled 
        country'' means a country with respect to which exports are 
        controlled under section 201 or 301.</DELETED>
        <DELETED>    (6) Controlled item.--The term ``controlled item'' 
        means an item the export of which is controlled under this 
        Act.</DELETED>
        <DELETED>    (7) Country.--The term ``country'' means a 
        sovereign country or an autonomous customs territory.</DELETED>
        <DELETED>    (8) Country supporting international terrorism.--
        The term ``country supporting international terrorism'' means a 
        country designated by the Secretary of State pursuant to 
        section 310.</DELETED>
        <DELETED>    (9) Department.--The term ``Department'' means the 
        Department of Commerce.</DELETED>
        <DELETED>    (10) Export.--</DELETED>
                <DELETED>    (A) The term ``export'' means--</DELETED>
                        <DELETED>    (i) an actual shipment, transfer, 
                        or transmission of an item out of the United 
                        States;</DELETED>
                        <DELETED>    (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, 
    
2000
                    transferred, or transmitted to an unauthorized 
                        recipient outside the United States; 
                        or</DELETED>
                        <DELETED>    (iii) 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.</DELETED>
                <DELETED>    (B) The term includes a 
                reexport.</DELETED>
        <DELETED>    (11) Foreign availability status.--The term 
        ``foreign availability status'' means the status described in 
        section 211(d)(1).</DELETED>
        <DELETED>    (12) Foreign person.--The term ``foreign person'' 
        means--</DELETED>
                <DELETED>    (A) an individual who is not--</DELETED>
                        <DELETED>    (i) a United States 
                        citizen;</DELETED>
                        <DELETED>    (ii) an alien lawfully admitted 
                        for permanent residence to the United States; 
                        or</DELETED>
                        <DELETED>    (iii) a protected individual as 
                        defined in section 274B(a)(3) of the 
                        Immigration and Nationality Act. (8 U.S.C. 
                        1324b(a)(3));</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (C) any governmental entity of a foreign 
                country.</DELETED>
        <DELETED>    (13) Item.--</DELETED>
                <DELETED>    (A) In general.--The term ``item'' means 
                any good, technology, or service.</DELETED>
                <DELETED>    (B) Other definitions.--In this 
                paragraph:</DELETED>
                        <DELETED>    (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.</DELETED>
                        <DELETED>    (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.</DELETED>
                        <DELETED>    (iii) Service.--The term 
                        ``service'' means any act of assistance, help 
                        or aid.</DELETED>
        <DELETED>    (14) Mass-market status.--The term ``mass-market 
        status'' means the status described in section 
        211(d)(2).</DELETED>
        <DELETED>    (15) 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.</DELETED>
        <DELETED>    (16) National security control list.--The term 
        ``National Security Control List'' means the list established 
        under section 202(a).</DELETED>
        <DELETED>    (17) Person.--The term ``person'' includes--
        </DELETED>
                <DELETED>    (A) any individual, or partnership, 
                corporation, business association, society, trust, 
                organization, or any other group created or organized 
                under the laws of a country; and</DELETED>
                <DELETED>    (B) any government, or any governmental 
                entity, including any governmental entity operating as 
                a business enterprise.</DELETED>
        <DELETED>    (18) Reexport.--The term ``reexport'' means the 
        shipment, transfer, transshipment, or diversion of items from 
        one foreign country to another.</DELETED>
        <DELETED>    (19) Secretary.--The term ``Secretary'' means the 
        Secretary of Commerce.</DELETED>
        <DELETED>    (20) 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)).</DELETED>
        <DELETED>    (21) United states person.--The term ``United 
        States person'' means--</DELETED>
                <DELETED>    (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);</DELETED>
                <DELETED>    (B) any domestic concern (including any 
                permanent domestic establishment of any foreign 
                concern); and</DELETED>
                <DELETED>    (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.</DELETED>

             <DELETED>TITLE I--GENERAL AUTHORITY</DELETED>

<DELETED>SEC. 101. COMMERCE CONTROL LIST.</DELETED>

<DELETED>    (a) In General.--Under such conditions as the Secretary 
may impose, consistent with the provisions of this Act, the Secretary--
</DELETED>
        <DELETED>    (1) shall establish and maintain a Commerce 
        Control List (in this Act referred to as the ``Control List'') 
        consisting of items the export of which are subject to 
        licensing or other authorization or requirement; and</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (b) Types of License or Other Authorization.--The types of 
license or other authorization referred to in subsection (a)(2) include 
the following:</DELETED>
        <DELETED>    (1) Specific exports.--A license that authorizes a 
        specific export.</DELETED>
        <DELETED>    (2) Multiple exports.--A license that authorizes 
        multiple exports in lieu of a license for each such 
        export.</DELETED>
        <DELETED>    (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 adva
2000
nce notification of the 
        intent to export in accordance with regulations prescribed by 
        the Secretary.</DELETED>
        <DELETED>    (4) License exception.--Authority to export an 
        item on the Control List without prior license or notification 
        in lieu of a license.</DELETED>
<DELETED>    (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, to replace on a 
one-for-one basis parts that were in an item that was lawfully exported 
from the United States, unless--</DELETED>
        <DELETED>    (1) the Secretary determines that such license is 
        required to export such parts; or</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (e) Regulations.--The Secretary may prescribe such 
regulations as are necessary to carry out the provisions of this 
Act.</DELETED>

<DELETED>SEC. 102. DELEGATION OF AUTHORITY.</DELETED>

<DELETED>    (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.</DELETED>
<DELETED>    (b) Exceptions.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>

<DELETED>SEC. 103. PUBLIC INFORMATION; CONSULTATION 
              REQUIREMENTS.</DELETED>

<DELETED>    (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.</DELETED>
<DELETED>    (b) Consultation With Persons Affected.--The Secretary 
shall consult regularly with representatives of a broad spectrum of 
enterprises, labor organizations, and citizens interested in or 
affected by export controls in order to obtain their views on United 
States export control policy and the foreign availability or mass-
market status of controlled items.</DELETED>

<DELETED>SEC. 104. RIGHT OF EXPORT.</DELETED>

<DELETED>    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.</DELETED>

<DELETED>SEC. 105. EXPORT CONTROL ADVISORY COMMITTEES.</DELETED>

<DELETED>    (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 under the International Emergency Economic Powers 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.</DELETED>
<DELETED>    (b) Functions.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (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, 
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.</DELETED>

<DELETED>SEC. 106. PRESIDENT'S TECHNOLOGY EXPORT COUNCIL.</DELETED>

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

<DELETED>SEC. 107. PROHIBITION ON CHARGING FEES.</DELETED>

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

     <DELETED>TITLE II--NATIONAL SECURITY EXPORT CONTROLS</DELETED>

        <DELE
2000
TED>Subtitle A--Authority and Procedures</DELETED>

<DELETED>SEC. 201. AUTHORITY FOR NATIONAL SECURITY EXPORT 
              CONTROLS.</DELETED>

<DELETED>    (a) Authority.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (2) Exercise of authority.--The authority 
        contained in this subsection shall be exercised by the 
        Secretary, in consultation with the Secretary of Defense, the 
        intelligence agencies, and such other departments and agencies 
        as the Secretary considers appropriate.</DELETED>
<DELETED>    (b) Purposes.--The purposes of national security export 
controls are the following:</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (2) To stem the proliferation of weapons of mass 
        destruction, and the means to deliver them, and other 
        significant military capabilities by--</DELETED>
                <DELETED>    (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;</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (3) To deter acts of international 
        terrorism.</DELETED>
<DELETED>    (c) End Use and End User Controls.--Notwithstanding any 
other provision of this title, controls may be imposed, based on the 
end use or end user, on the export of any item, that could materially 
contribute to the proliferation of weapons of mass destruction or the 
means to deliver them.</DELETED>
<DELETED>    (d) Enhanced Controls.--Notwithstanding any other 
provisions of this title, the President may determine that applying the 
provisions of section 204(b) or section 211 with respect to an item on 
the National Security Control List would constitute a significant 
threat to the national security of the United States and that such item 
requires enhanced control. If the President determines that enhanced 
control should apply to such item, it shall be excluded from the 
provisions of section 204(b), section 211, or both, until such time as 
the President shall determine that such enhanced control should no 
longer apply to such item. The President may not delegate the authority 
provided for in this subsection.</DELETED>

<DELETED>SEC. 202. NATIONAL SECURITY CONTROL LIST.</DELETED>

<DELETED>    (a) Establishment of List.--</DELETED>
        <DELETED>    (1) Establishment.--The Secretary shall establish 
        and maintain a National Security Control List as part of the 
        Control List.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (3) Identification of items for national security 
        control list.--The Secretary, with the concurrence of the 
        Secretary of Defense 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 provided 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 periodically 
        review and, with the concurrence of the Secretary of Defense 
        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.</DELETED>
<DELETED>    (b) Risk Assessment.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (2) Risk factors.--The risk factors referred to in 
        paragraph (1), with respect to each item, are as 
        follows:</DELETED>
                <DELETED>    (A) The characteristics of the 
                item.</DELETED>
                <DELETED>    (B) The threat, if any, to the United 
                States or the national security interest of the United 
                States from the misuse or diversion of such 
                item.</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (D) The threat to the national security 
                interests of the United States if the item is not 
                controlled.</DELETED>
                <DELETED>    (E) Any other appropriate risk 
                factors.</DELETED>
<DELETED>    (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.</DELETED>

<DELETED>SEC. 203. COUNTRY TIERS.</DELETED>

<DELETED>    (a) In General.--</
2000
DELETED>
        <DELETED>    (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--</DELETED>
                <DELETED>    (A) establish and maintain a country 
                tiering system in accordance with subsection (b); 
                and</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (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 
        such other departments and agencies as the President considers 
        appropriate.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (b) Tiers.--</DELETED>
        <DELETED>    (1) In general.--The President shall establish a 
        country tiering system consisting of 5 tiers for purposes of 
        this section, ranging from tier 1 through tier 5.</DELETED>
        <DELETED>    (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 tier 1. Countries that 
        represent the highest risk of diversion or misuse of an item on 
        the National Security Control List shall be assigned to tier 
        5.</DELETED>
        <DELETED>    (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 tier 2, 3, or 4, respectively, based on the 
        assessments required under subsection (c).</DELETED>
<DELETED>    (c) Assessments.--The President shall make an assessment 
of each country in assigning a country tier taking into consideration 
risk factors including the following:</DELETED>
        <DELETED>    (1) The present and potential relationship of the 
        country with the United States.</DELETED>
        <DELETED>    (2) The present and potential relationship of the 
        country with countries friendly to the United States and with 
        countries hostile to the United States.</DELETED>
        <DELETED>    (3) The country's capabilities regarding chemical, 
        biological, and nuclear weapons and the country's membership 
        in, and level of compliance with, relevant multilateral export 
        control regimes.</DELETED>
        <DELETED>    (4) The country's capabilities regarding missile 
        systems and the country's membership in, and level of 
        compliance with, relevant multilateral export control 
        regimes.</DELETED>
        <DELETED>    (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 as defined in section 2(15) pursuant to 
        an international agreement to which the United States is a 
        party.</DELETED>
        <DELETED>    (6) The country's other military capabilities and 
        the potential threat posed by the country to the United States 
        or its allies.</DELETED>
        <DELETED>    (7) The effectiveness of the country's export 
        control system.</DELETED>
        <DELETED>    (8) The level of the country's cooperation with 
        United States export control enforcement and other 
        efforts.</DELETED>
        <DELETED>    (9) The risk of export diversion by the country to 
        a higher tier country.</DELETED>
        <DELETED>    (10) The designation of the country as a country 
        supporting international terrorism under section 310.</DELETED>
<DELETED>    (d) Tier Application.--The country tiering system shall be 
used in the determination of license requirements pursuant to section 
201(a)(1).</DELETED>

<DELETED>SEC. 204. INCORPORATED PARTS AND COMPONENTS.</DELETED>

<DELETED>    (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--</DELETED>
        <DELETED>    (1) are essential to the functioning of the 
        item,</DELETED>
        <DELETED>    (2) are customarily included in sales of the item 
        in countries other than controlled countries, and</DELETED>
        <DELETED>    (3) comprise 25 percent or less of the total value 
        of the item,</DELETED>
<DELETED>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.</DELETED>
<DELETED>    (b) Reexports of Foreign-Made Items Incorporating United 
States Controlled Content.--</DELETED>
        <DELETED>    (1) In general.--No authority or permission may be 
        required under this title to reexport to a country (other than 
        a country designated as a country supporting international 
        terrorism pursuant to section 310) 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.</DELETED>
        <DELETED>    (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--</DELETED>
                <DELETED>    (A) are subject to the jurisdiction of the 
                United States;</DELETED>
                <DELETED>    (B) are incorporated into the item; 
                and</DELETED>
                <DELETED>    (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 
2000
is to be 
reexported.</DELETED>

<DELETED>SEC. 205. PETITION PROCESS FOR MODIFYING EXPORT 
              STATUS.</DELETED>

<DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>

       <DELETED>Subtitle B--Foreign Availability and Mass-Market 
                            Status</DELETED>

<DELETED>SEC. 211. DETERMINATION OF FOREIGN AVAILABILITY AND MASS-
              MARKET STATUS.</DELETED>

<DELETED>    (a) In General.--The Secretary shall--</DELETED>
        <DELETED>    (1) on a continuing basis,</DELETED>
        <DELETED>    (2) upon a request from the Office of Technology 
        Evaluation, or</DELETED>
        <DELETED>    (3) upon receipt of a petition filed by an 
        interested party,</DELETED>
<DELETED>review and determine the foreign availability and the mass-
market status of any item the export of which is controlled under this 
title.</DELETED>
<DELETED>    (b) Petition and Consultation.--</DELETED>
        <DELETED>    (1) In general.--The Secretary shall establish a 
        process for an interested party 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, Secretary of 
        State, and other appropriate Government agencies and with the 
        Office of Technology Evaluation (established pursuant to 
        section 214).</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (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--</DELETED>
        <DELETED>    (1) a foreign availability status, or</DELETED>
        <DELETED>    (2) a mass-market status,</DELETED>
<DELETED>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 
or under section 1211 of the National Defense Authorization Act of 
Fiscal Year 1998 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.</DELETED>
<DELETED>    (d) Criteria for Determining Foreign Availability and 
Mass-Market Status.--</DELETED>
        <DELETED>    (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)--</DELETED>
                <DELETED>    (A) is available to controlled countries 
                from sources outside the United States, including 
                countries that participate with the United States in 
                multilateral export controls;</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (2) Mass-market status.--</DELETED>
                <DELETED>    (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):</DELETED>
                        <DELETED>    (i) The production and 
                        availability for sale in a large volume to 
                        multiple potential purchasers.</DELETED>
                        <DELETED>    (ii) The widespread distribution 
                        through normal commercial channels, such as 
                        retail stores, direct marketing catalogues, 
                        electronic commerce, and other 
                        channels.</DELETED>
                        <DELETED>    (iii) The conduciveness to 
                        shipment and delivery by generally accepted 
                        commercial means of transport.</DELETED>
                        <DELETED>    (iv) The use for the item's normal 
                        intended purpose without substantial and 
                        specialized service provided by the 
                        manufacturer, distributor, or other third 
                        party.</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (3) Special rules.--For purposes of this 
        subtitle--</DELETED>
                <DELETED>    (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, the properties, nature, 
                and quality of the item.</DELETED>
                <DELETED>    (B) Directly competitive item.--</DELETED>
                        <DELETED>    (i) In general.--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.</DELETED>
                        <DELETED>    (ii) Exception.--An item is not 
                        directly competitive with a controlled item if 
                        the item is substantially inferior to the 
                        controlled item with respect to characteristics 
                        that resulted in the export of the item being 
                        controlled.<
2000
/DELETED>

<DELETED>SEC. 212. PRESIDENTIAL SET-ASIDE OF FOREIGN AVAILABILITY 
              DETERMINATION.</DELETED>

<DELETED>    (a) Criteria for Presidential Set-Aside.--</DELETED>
        <DELETED>    (1) General criteria.--</DELETED>
                <DELETED>    (A) In general.--If the President 
                determines that--</DELETED>
                        <DELETED>    (i)(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, and</DELETED>
                        <DELETED>    (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</DELETED>
                        <DELETED>    (ii) failure to control an item 
                        would be contrary to the provisions of section 
                        309,</DELETED>
                <DELETED>the President may set aside the Secretary's 
                determination of foreign availability status with 
                respect to the item.</DELETED>
                <DELETED>    (B) Nondelegation.--The President may not 
                delegate the authority provided for in this 
                paragraph.</DELETED>
        <DELETED>    (2) Report to congress.--The President shall 
        promptly--</DELETED>
                <DELETED>    (A) report any set-aside determination 
                described in paragraph (1), along with the specific 
                reasons why the determination was made, to the 
                Committee on Banking, Housing, and Urban Affairs of the 
                Senate and the Committee on International Relations of 
                the House of Representatives; and</DELETED>
                <DELETED>    (B) publish the determination in the 
                Federal Register.</DELETED>
<DELETED>    (b) Presidential Action in Case of Set-Aside.--</DELETED>
        <DELETED>    (1) In general.--</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (3) Expiration of presidential set-aside.--A 
        determination by the President described in subsection 
        (a)(1)(A) shall cease to apply with respect to an item on the 
        earlier of--</DELETED>
                <DELETED>  (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;</DELETED>
                <DELETED>    (B) the date on which the negotiations 
                described in paragraph (1) have terminated without 
                achieving an agreement to eliminate foreign 
                availability;</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (D) the date that is 18 months after the 
                date on which the determination described in subsection 
                (a)(1)(A) is made if the President has been unable to 
                achieve an agreement to eliminate foreign availability 
within that 18-month period.</DELETED>
        <DELETED>    (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.</DELETED>

<DELETED>SEC. 213. PRESIDENTIAL SET-ASIDE OF MASS-MARKET STATUS 
              DETERMINATION.</DELETED>

<DELETED>    (a) Criteria for Presidential Set-Aside.--</DELETED>
        <DELETED>    (1) General criteria.--If the President determines 
        that--</DELETED>
                <DELETED>    (A)(i) decontrolling or failing to control 
                an item constitutes a serious threat to the national 
                security of the United States, and</DELETED>
                <DELETED>    (ii) export controls on the item would 
                advance the national security interests of the United 
                States, or</DELETED>
                <DELETED>    (B) failure to control an item would be 
                contrary to the provisions of section 309,</DELETED>
        <DELETED>the President may set aside the Secretary's 
        determination of mass-market status with respect to the 
        item.</DELETED>
        <DELETED>    (2) Nondelegation.--The President may not delegate 
        the authority provided for in this subsection.</DELETED>
<DELETED>    (b) Presidential Action in Case of Set-Aside.--</DELETED>
        <DELETED>    (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 
        report the determination, along with the specific reasons why 
        the determination was made, 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.</DELETED>
        <DELETED>    (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 
2000
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.</DELETED>

<DELETED>SEC. 214. OFFICE OF TECHNOLOGY EVALUATION.</DELETED>

<DELETED>    (a) In General.--</DELETED>
        <DELETED>    (1) Establishment of office.--The Secretary shall 
        establish in the Department of Commerce an Office of Technology 
        Evaluation (in this subtitle 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.</DELETED>
        <DELETED>    (2) Staff.--The Secretary shall ensure that the 
        Office include 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 responsibilities set 
        forth in subsection (b) of this section. 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.</DELETED>
<DELETED>    (b) Responsibilities.--The Office shall be responsible 
for--</DELETED>
        <DELETED>    (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;</DELETED>
        <DELETED>    (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;</DELETED>
        <DELETED>    (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;</DELETED>
        <DELETED>    (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;</DELETED>
        <DELETED>    (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</DELETED>
        <DELETED>    (6) conducting assessments of the impact of United 
        States export control policies on--</DELETED>
                <DELETED>    (A) United States industrial sectors 
                critical to the national security interests of the 
                United States; and</DELETED>
                <DELETED>    (B) the United States economy in 
                general.</DELETED>
<DELETED>    (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 801 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.</DELETED>
<DELETED>    (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.</DELETED>

      <DELETED>TITLE III--FOREIGN POLICY EXPORT CONTROLS</DELETED>

<DELETED>SEC. 301. AUTHORITY FOR FOREIGN POLICY EXPORT 
              CONTROLS.</DELETED>

<DELETED>    (a) Authority.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (b) Purposes.--The purposes of foreign policy export 
controls are the following:</DELETED>
        <DELETED>    (1) To promote the foreign policy objectives of 
        the United States, consistent with the purposes of this section 
        and the provisions of this Act.</DELETED>
        <DELETED>    (2) To promote international peace, stability, and 
        respect for fundamental human rights.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (c) Exception.--The President may not control under this 
title the export from a foreign country (whether or not by a United 
States person) of any item produced or originating in a foreign country 
that contains parts or components produced or originating in the United 
States.</DELETED>
<DELETED>    (d) Contract Sanctity.--</DELETED>
        <DELETED>    (1) In general.--The President may not prohibit 
        the export of any item under this title if that item is to be 
        exported--</DELETED>
                <DELETED>    (A) in performance of a binding contract, 
                agreement, or other contractual commitment entered into 
                before the date on which the President reports to 
                Congress the President's intention to impose controls 
                on that item under this title; or</DELETED>
                <DELETED>    (B) under a license or other authorization 
                issued under this Act before the earlier of the date on 
                which the control is initially imposed or the date on 
                which the President reports to Congress the President's 
                intention to impose controls under this 
                title.</DELETED>
        <DELE
2000
TED>    (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--
        </DELETED>
                <DELETED>    (A) there is a serious threat to a foreign 
                policy interest of the United States;</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (C) the export controls will be in effect 
                only as long as the serious threat exists.</DELETED>

<DELETED>SEC. 302. PROCEDURES FOR IMPOSING CONTROLS.</DELETED>

<DELETED>    (a) Notice.--</DELETED>
        <DELETED>    (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--</DELETED>
                <DELETED>    (A) a notice of intent to do so; 
                and</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (2) Purposes of notice.--The purposes of the 
        notice are--</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (B) to provide an opportunity for 
                negotiations to achieve the purposes set forth in 
                section 301(b).</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (c) Consultation.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (2) Classified consultation.--The consultations 
        described in paragraph (1) may be conducted on a classified 
        basis if the Secretary considers it necessary.</DELETED>

<DELETED>SEC. 303. CRITERIA FOR FOREIGN POLICY EXPORT 
              CONTROLS.</DELETED>

<DELETED>    Each export control imposed by the President under this 
title shall--</DELETED>
        <DELETED>    (1) have clearly stated and specific United States 
        foreign policy objectives;</DELETED>
        <DELETED>    (2) have objective standards for evaluating the 
        success or failure of the export control;</DELETED>
        <DELETED>    (3) include an assessment by the President that--
        </DELETED>
                <DELETED>    (A) the export control is likely to 
                achieve such objectives and the expected time for 
                achieving the objectives; and</DELETED>
                <DELETED>    (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;</DELETED>
        <DELETED>    (4) be targeted narrowly; and</DELETED>
        <DELETED>    (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.</DELETED>

<DELETED>SEC. 304. PRESIDENTIAL REPORT BEFORE IMPOSITION OF 
              CONTROL.</DELETED>

<DELETED>    (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.</DELETED>
<DELETED>    (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--
</DELETED>
        <DELETED>    (1) any diplomatic and other steps that the United 
        States has taken to accomplish the intended objective of the 
        proposed export control;</DELETED>
        <DELETED>    (2) unilateral export controls imposed, and other 
        measures taken, by other countries to achieve the intended 
        objective of the proposed export control;</DELETED>
        <DELETED>    (3) the likelihood of multilateral adoption of 
        comparable export controls;</DELETED>
        <DELETED>    (4) alternative measures to promote the same 
        objectives and the likelihood of their potential 
        success;</DELETED>
        <DELETED>    (5) any United States obligations under 
        international trade agreements, treaties, or other 
        international arrangements, with which the proposed export 
        control may conflict;</DELETED>
        <DELETED>    (6) the likelihood that the proposed export 
        control could lead to retaliation against United States 
        interests;</DELETED>
        <DELETED>    (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</DELETED>
        <DELETED>    (8) a conclusion that the probable achievement of 
        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.</DELETED>

<DELETED>SEC. 305. IMPOSITION OF CONTROLS.</DELETED>

<DELETED>    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 .</DELETED>

<DELETED>SEC. 306. DEFERRAL AUTHORITY.</DELETED>

<DELETED>    (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--</DELETED>
        <DELETED>    (1) the President determines that a deferral of 
        compliance with the requirement i
2000
s in the national interest of 
        the United States; and</DELETED>
        <DELETED>    (2) the requirement is satisfied not later than 60 
        days after the date on which the export control is imposed 
        under this title.</DELETED>
<DELETED>    (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 the 60-
day period.</DELETED>

<DELETED>SEC. 307. REVIEW, RENEWAL, AND TERMINATION.</DELETED>

<DELETED>    (a) Renewal and Termination.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (2) Exception.--This section shall not apply to an 
        export control imposed under this title that--</DELETED>
                <DELETED>    (A) is required by law;</DELETED>
                <DELETED>    (B) is targeted against any country 
                designated as a country supporting international 
                terrorism pursuant to section 310; or</DELETED>
                <DELETED>    (C) has been in effect for less than 1 
                year as of February 1 of a renewal year.</DELETED>
<DELETED>    (b) Review.--</DELETED>
        <DELETED>    (1) In general.--Not later than February 1 of each 
        renewal year, the President shall review all export controls in 
        effect under this title.</DELETED>
        <DELETED>    (2) Consultation.--</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (B) Classified consultation.--The 
                consultations may be conducted on a classified basis if 
                the Secretary considers it necessary.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (c) Report to Congress.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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:</DELETED>
                <DELETED>    (A) A clearly stated explanation of the 
                specific United States foreign policy objective that 
                the existing export control was intended to 
                achieve.</DELETED>
                <DELETED>    (B) An assessment of--</DELETED>
                        <DELETED>    (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</DELETED>
                        <DELETED>    (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.</DELETED>
                <DELETED>    (C) An updated description and assessment 
                of--</DELETED>
                        <DELETED>    (i) each of the criteria described 
                        in section 303, and</DELETED>
                        <DELETED>    (ii) each matter required to be 
                        reported under section 304(b) (1) through 
                        (8).</DELETED>
        <DELETED>    (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.</DELETED>

<DELETED>SEC. 308. TERMINATION OF CONTROLS UNDER THIS TITLE.</DELETED>

<DELETED>    (a) In General.--Notwithstanding any other provision of 
law, the President--</DELETED>
        <DELETED>    (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</DELETED>
        <DELETED>    (2) may terminate any export control imposed under 
        this title that is not required by law at any time.</DELETED>
<DELETED>    (b) Exception.--Paragraphs (1) and (2) of subsection (a) 
do not apply to any export control imposed under this title that is 
targeted against any country designated as a country supporting 
international terrorism pursuant to section 310.</DELETED>
<DELETED>    (c) Effective Date of Termination.--The termination of an 
export control pursuant to this section shall take effect on the date 
notice of the termination is published in the Federal 
Register.</DELETED>

<DELETED>SEC. 309. COMPLIANCE WITH INTERNATIONAL OBLIGATIONS.</DELETED>

<DELETED>    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 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.</DELETED>

<DELETED>SEC. 310. DESIGNATION OF COUNTRIES SUPPORTING INTERNATIONAL 
              TERRORISM.</DELETED>

<DELETED>    (a) License Required.--A license shall be required for the 
export of an item to a country if the Secretary of State has determined 
that--</DELETED>
        <DELETED>    (1) the government of such country has repeatedly 
        provided support for acts of international terrorism; 
        and</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (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
2000
 the Senate at 
least 30 days before issuing any license required by subsection 
(a).</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (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--</DELETED>
        <DELETED>    (1) before the proposed rescission would take 
        effect, a report certifying that--</DELETED>
                <DELETED>    (A) there has been a fundamental change in 
                the leadership and policies of the government of the 
                country concerned;</DELETED>
                <DELETED>    (B) that government is not supporting acts 
                of international terrorism; and</DELETED>
                <DELETED>    (C) that government has provided 
                assurances that it will not support acts of 
                international terrorism in the future; or</DELETED>
        <DELETED>    (2) at least 45 days before the proposed 
        rescission would take effect, a report justifying the 
        rescission and certifying that--</DELETED>
                <DELETED>    (A) the government concerned has not 
                provided any support for international terrorism during 
                the preceding 6-month period; and</DELETED>
                <DELETED>    (B) the government concerned has provided 
                assurances that it will not support acts of 
                international terrorism in the future.</DELETED>
<DELETED>    (e) Information To Be Included in Notification.--The 
Secretary and the Secretary of State shall include in the notification 
required by subsection (b)--</DELETED>
        <DELETED>    (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;</DELETED>
        <DELETED>    (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;</DELETED>
        <DELETED>    (3) the reasons why the proposed export or 
        transfer is in the national interest of the United 
        States;</DELETED>
        <DELETED>    (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;</DELETED>
        <DELETED>    (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</DELETED>
        <DELETED>    (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.</DELETED>

 <DELETED>TITLE IV--EXEMPTION FOR AGRICULTURAL COMMODITIES, MEDICINE, 
                     AND MEDICAL SUPPLIES</DELETED>

<DELETED>SEC. 401. EXEMPTION FOR AGRICULTURAL COMMODITIES, MEDICINE, 
              AND MEDICAL SUPPLIES.</DELETED>

<DELETED>    Notwithstanding any other provision of law, the export 
controls imposed on items under title III shall not apply to 
agricultural commodities, medicine, and medical supplies.</DELETED>

<DELETED>SEC. 402. TERMINATION OF EXPORT CONTROLS REQUIRED BY 
              LAW.</DELETED>

<DELETED>    Notwithstanding any other provision of law, the President 
shall terminate any export control mandated by law on agricultural 
commodities, medicine, and medical supplies upon the date of enactment 
of this Act except for a control that is specifically reimposed by 
law.</DELETED>

<DELETED>SEC. 403. EXCLUSIONS.</DELETED>

<DELETED>    Sections 401 and 402 do not apply to the 
following:</DELETED>
        <DELETED>    (1) The export of agricultural commodities, 
        medicine, and medical supplies that are subject to national 
        security export controls under title II or are listed on the 
        United States Munitions List established under section 38 of 
        the Arms Export Control Act (22 U.S.C. 2778).</DELETED>
        <DELETED>    (2) The export of agricultural commodities, 
        medicine, and medical supplies to a country against which an 
        embargo is in effect under the Trading With the Enemy 
        Act.</DELETED>

   <DELETED>TITLE V--PROCEDURES FOR EXPORT LICENSES AND INTERAGENCY 
                      DISPUTE RESOLUTION</DELETED>

<DELETED>SEC. 501. EXPORT LICENSE PROCEDURES.</DELETED>

<DELETED>    (a) Responsibility of the Secretary.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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:</DELETED>
                <DELETED>    (A) The characteristics of the controlled 
                item.</DELETED>
                <DELETED>    (B) The threat to--</DELETED>
                        <DELETED>    (i) the national security 
                        interests of the United States from items 
                        controlled under title II of this Act; 
                        or</DELETED>
                        <DELETED>    (ii) the foreign policy of the 
                        United States from items controlled under title 
                        III of this Act.</DELETED>
                <DELETED>    (C) The country tier designation of the 
                country to which a controlled item is to be exported 
                pursuant to section 203.</DELETED>
                <DELETED>    (D) The risk of export diversion or misuse 
                by--</DELETED>
                        &l
2000
t;DELETED>    (i) the exporter;</DELETED>
                        <DELETED>    (ii) the method of 
                        export;</DELETED>
                        <DELETED>    (iii) the end-user;</DELETED>
                        <DELETED>    (iv) the country where the end-
                        user is located; and</DELETED>
                        <DELETED>    (v) the end-use.</DELETED>
                <DELETED>    (E) Risk mitigating factors including, but 
                not limited to--</DELETED>
                        <DELETED>    (i) changing the characteristics 
                        of the controlled item;</DELETED>
                        <DELETED>    (ii) after-market monitoring by 
                        the exporter; and</DELETED>
                        <DELETED>    (iii) post-shipment 
                        verification.</DELETED>
<DELETED>    (b) Initial Screening.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (2) Initial procedures.--</DELETED>
                <DELETED>    (A) In general.--Not later than 9 days 
                after receiving any license application, the Secretary 
                shall--</DELETED>
                        <DELETED>    (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;</DELETED>
                        <DELETED>    (ii) 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;</DELETED>
                        <DELETED>    (iii) ensure that the 
                        classification stated on the application for 
                        the export items is correct; and</DELETED>
                        <DELETED>    (iv) return the application if a 
                        license is not required.</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (3) Withdrawal of application.--An applicant may, 
        by written notice to the Secretary, withdraw an application at 
        any time before final action.</DELETED>
<DELETED>    (c) Action by Other Departments and Agencies.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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 in a prompt and responsible manner 
        on an application. 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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (d) Action by the Secretary.--Not later than 30 days after 
the date the application is referred, the Secretary shall--</DELETED>
        <DELETED>    (1) if there is agreement among the referral 
        departments and agencies to issue or deny the license--
        </DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (B) notify the applicant of the intention 
                to deny the license; or</DELETED>
        <DELETED>    (2) if there is no agreement among the referral 
        departments and agencies, notify the applicant that the 
        application is subject to the interagency dispute resolution 
        process provided for in section 502.</DELETED>
<DELETED>    (e) Consequences of Application Denial.--</DELETED>
        <DELETED>    (1) In general.--If a determination is made to 
        deny a license, the applicant shall be informed in writing by 
        the Secretary of--</DELETED>
                <DELETED>    (A) the determination;</DELETED>
                <DELETED>    (B) the specific statutory and regulatory 
                bases for the proposed denial;</DELETED>
                <DELETED>    (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 re
2000
strictions with 
the applicant and the specific statutory and regulatory bases for 
imposing such modifications or restrictions;</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (E) the availability of appeal 
                procedures.</DELETED>
        <DELETED>    (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 receive consideration in a timely 
        manner.</DELETED>
<DELETED>    (f) Appeals and Other Actions by Applicant.--</DELETED>
        <DELETED>    (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 502(b)(3).</DELETED>
        <DELETED>    (2) Enforcement of time limits.--</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (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.</DELETED>
<DELETED>    (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:</DELETED>
        <DELETED>    (1) Agreement of the applicant.--Delays upon which 
        the Secretary and the applicant mutually agree.</DELETED>
        <DELETED>    (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--</DELETED>
                <DELETED>    (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;</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (C) the analysis of the result of the 
                prelicense check is completed by the Secretary within 5 
                days.</DELETED>
        <DELETED>    (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--</DELETED>
                <DELETED>    (A) the request for such assurances is 
                sent to the Secretary of State within 5 days after the 
                determination that the assurances are 
                required;</DELETED>
                <DELETED>    (B) the Secretary of State initiates the 
                request of the relevant government within 10 days 
                thereafter; and</DELETED>
                <DELETED>    (C) the license is issued within 5 days 
                after the Secretary receives the requested 
                assurances.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (5) Multilateral review.--Multilateral review of a 
        license application to the extent that such multilateral review 
        is required by a relevant multilateral regime.</DELETED>
        <DELETED>    (6) Congressional notification.--Such time as is 
        required for mandatory congressional notifications under this 
        Act.</DELETED>
        <DELETED>    (7) Consultations.--Consultation with foreign 
        governments, if such consultation is provided for by a relevant 
        multilateral regime as a precondition for approving a 
        license.</DELETED>
<DELETED>    (h) Classification Requests and Other Inquiries.--
</DELETED>
        <DELETED>    (1) Classification requests.--In any case in which 
        the Secretary receives a written request asking for the proper 
        classification of an item on the Control List or the 
        applicability of licensing requirements under this title, the 
        Secretary shall promptly notify the Secretary of Defense and 
other departments and agencies the Secretary considers appropriate. The 
Secretary shall, within 14 days after receiving the request, inform the 
person making the request of the proper classification.</DELETED>
        <DELETED>    (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.</DELETED>

<DELETED>SEC. 502. INTERAGENCY DISPUTE RESOLUTION PROCESS.</DELETED>

<DELETED>    (a) In General.--All license applications on which 
agreement cannot be reached shall be referred to the interagency 
dispute resolution process for decision.</DELETED>
<DELETED>    (b) Interagency Dispute Resolution Process.--</DELETED>
        <DELET
2000
ED>    (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.</DELETED>
        <DELETED>    (2) Intelligence community.--The analytic product 
        of the intelligence community should be fully considered with 
        respect to any proposed license under this title.</DELETED>
        <DELETED>    (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--</DELETED>
                <DELETED>    (A) provide for decision-making based on 
                the majority vote of the participating departments and 
                agencies;</DELETED>
                <DELETED>    (B) provide that a department or agency 
                that fails to take a timely position, citing the 
                specific statutory and regulatory bases for a denial, 
                shall be deemed to have no objection to the pending 
                decision;</DELETED>
                <DELETED>    (C) provide that any decision of an 
                interagency committee established under paragraph (1) 
                or interagency dispute resolution process established 
                under this paragraph may be escalated to the next 
                higher level of review at the request of any 
                representative of a department or agency that 
                participated in the interagency committee or dispute 
                resolution process that made the decision; 
                and</DELETED>
                <DELETED>    (D) ensure that matters are resolved or 
                referred to the President not later than 90 days after 
                the date the completed license application is referred 
                by the Secretary.</DELETED>
<DELETED>    (c) Final Action.--</DELETED>
        <DELETED>    (1) In general.--Once a final decision is made 
        under subsection (b), the Secretary shall promptly--</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (B) notify the applicant of the intention 
                to deny the application.</DELETED>
        <DELETED>    (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.</DELETED>

   <DELETED>TITLE VI--INTERNATIONAL ARRANGEMENTS; FOREIGN BOYCOTTS; 
                  SANCTIONS; AND ENFORCEMENT</DELETED>

<DELETED>SEC. 601. INTERNATIONAL ARRANGEMENTS.</DELETED>

<DELETED>    (a) Multilateral Export Control Regimes.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (2) Participation in existing regimes.--Congress 
        encourages the United States to continue its active 
        participation in and to strengthen existing multilateral export 
        control regimes.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (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 Secretary considers necessary.</DELETED>
<DELETED>    (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:</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (2) Effective enforcement and compliance.--The 
        regime promotes enforcement and compliance with the regime's 
        rules and guidelines.</DELETED>
        <DELETED>    (3) Public understanding.--The regime makes an 
        effort to enhance public understanding of the purpose and 
procedures of the multilateral export control regime.</DELETED>
        <DELETED>    (4) Effective implementation procedures.--The 
        multilateral export control regime has procedures for the 
        implementation of its rules and guidelines through uniform and 
        consistent interpretations of its export controls.</DELETED>
        <DELETED>    (5) Enhanced cooperation with regime nonmembers.--
        There is agreement among the members of the multilateral export 
        control regime to--</DELETED>
                <DELETED>    (A) cooperate with governments outside the 
                regime to restrict the export of items controlled by 
                such regime; and</DELETED>
                <DELETED>    (B) establish an ongoing mechanism in the 
                regime to coordinate planning and implementation of 
                export control measures related to such 
                cooperation.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (7) Common list of controlled items.--There is 
        agreement on a common list of items controlled by the 
        multilateral export control regime.</DELETED>
        <DELETED>    (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 
2000

        of the members of the multilateral export control 
        regime.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (10) Harmonization of license approval 
        procedures.--There is harmonization among the members of the 
        regime of their national export license approval procedures and 
        practices.</DELETED>
        <DELETED>    (11) Undercutting.--There is a limit with respect 
        to when members of a multilateral export control regime--
        </DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (B) approve exports to a particular end 
                user to which the United States has denied export 
                license for a similar item.</DELETED>
<DELETED>    (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:</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (3) Enforcement.--The enforcement mechanism 
        provides authority for trained enforcement officers to 
        investigate and prevent illegal exports.</DELETED>
        <DELETED>    (4) Documentation.--There is a system of export 
        control documentation and verification with respect to 
        controlled items.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (6) Resources.--The member has devoted adequate 
        resources to administer effectively the authorities, systems, 
        mechanisms, and procedures described in paragraphs (1) through 
        (5).</DELETED>
<DELETED>    (e) Objectives Regarding Multilateral Export Control 
Regimes.--The President shall seek to achieve the following objectives 
with regard to multilateral export control regimes:</DELETED>
        <DELETED>    (1) Strengthen existing regimes.--Strengthen 
        existing multilateral export control regimes--</DELETED>
                <DELETED>    (A) by creating a requirement to share 
                information about export license applications among 
                members before a member approves an export license; 
                and</DELETED>
                <DELETED>    (B) harmonizing national export license 
                approval procedures and practices, including the 
                elimination of undercutting.</DELETED>
        <DELETED>    (2) Review and update.--Review and update 
        multilateral regime export control lists with other members, 
        taking into account--</DELETED>
                <DELETED>    (A) national security concerns;</DELETED>
                <DELETED>    (B) the controllability of items; 
                and</DELETED>
                <DELETED>    (C) the costs and benefits of 
                controls.</DELETED>
        <DELETED>    (3) Encourage compliance by nonmembers.--Encourage 
        nonmembers of the multilateral export control regime--
        </DELETED>
                <DELETED>    (A) to strengthen their national export 
                control regimes and improve enforcement;</DELETED>
                <DELETED>    (B) to adhere to the appropriate 
                multilateral export control regime; and</DELETED>
                <DELETED>    (C) not to undermine an existing 
                multilateral export control regime by exporting 
                controlled items in a manner inconsistent with the 
                guidelines of the regime.</DELETED>
<DELETED>    (f) Transparency of Multilateral Export Control Regimes.--
</DELETED>
        <DELETED>    (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 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:</DELETED>
                <DELETED>    (A) The purposes of the regime.</DELETED>
                <DELETED>    (B) The members of the regime.</DELETED>
                <DELETED>    (C) The export licensing policy of the 
                regime.</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (E) Any countries, end uses, or end users 
                that are subject to the export controls of the 
                regime.</DELETED>
                <DELETED>    (F) Rules of interpretation.</DELETED>
                <DELETED>    (G) Major policy actions.</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (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 not 
        inconsistent with arrangements under the regime 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.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (g) Support of Other Countries' Export Control Systems.--
The Secretary is encouraged to continue to--</DELETED>
        <DELETED>    (1) participate in training of, and provide 
        training to, officials of other c
2000
ountries on the principles and 
        procedures for implementing effective export controls; 
        and</DELETED>
        <DELETED>    (2) participate in any such training provided by 
        other departments and agencies of the United States.</DELETED>

<DELETED>SEC. 602. FOREIGN BOYCOTTS.</DELETED>

<DELETED>    (a) Purposes.--The purposes of this section are as 
follows:</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (b) Prohibitions and Exceptions.--</DELETED>
        <DELETED>    (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:</DELETED>
                <DELETED>    (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).</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (2) Exceptions.--Regulations issued pursuant to 
        paragraph (1) shall provide exceptions for--</DELETED>
                <DELETED>    (A) compliance, or agreement to comply, 
                with requirements--</DELETED>
                        <DELETED>    (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</DELETED>
                        <DELETED>    (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;</DELETED>
                <DELETED>    (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;</DELETED>
                <DELETED>    (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;</DELETED>
                <DELETED>   
2000
 (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;</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (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).</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (c) Additional Regulations and Reports.--</DELETED>
        <DELETED>    (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).</DELETED>
        <DELETED>    (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).</DELETED>
<DELETED>    (d) Preemption.--The provisions of this section and the 
regulations issued under this section shall preempt any law, rule, or 
regulation that--</DELETED>
        <DELETED>    (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</DELETED>
        <DELETED>    (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.</DELETED>

<DELETED>SEC. 603. PENALTIES.</DELETED>

<DELETED>    (a) Criminal Penalties.--</DELETED>
        <DELETED>    (1) Violations by an individual.--Any individual 
        who knowingly 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, except that the term of imprisonment may be 
        increased to life for multiple violations or aggravated 
        circumstances.</DELETED>
        <DELETED>    (2) Violations by a person other than an 
        individual.--Any person other than an individual who knowingly 
        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 $10,000,000, whichever is greater, 
        for each violation.</DELETED>
<DELETED>    (b) Forfeiture of Property Interest and Proceeds.--
</DELETED>
        <DELETED>    (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--</DELETED>
                <DELETED>    (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;</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (C) any of that person's property 
                constituting, or derived from, any proceeds obtained 
                directly or indirectly as a result of the 
                violation.</DELETED>
        <DELETED>    (2) Procedures.--The procedures in any forfeiture 
        under this subsection, and the duties and authority of the 
        courts of the United States and the Attorney General with 
        respect to any forfeiture action under this subsection, or with 
        respect to any property that may be subject to forfeiture under 
        this subsection, shall be governed by the provisions of chapter 
        46 of title 18, United States Code, to the same extent as 
        property subject to forfeiture under that chapter.</DELETED>
<DELETED>    (c) Civil Penalties; Administrative Sanctions.--</DELETED>
        <DEL
2000
ETED>    (1) Civil penalties.--The Secretary may impose a 
        civil penalty of up to $1,000,000 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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (d) Payment of Civil Penalties.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (2) Deferral or suspension.--</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (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 
        except as set forth in section 607(h).</DELETED>
<DELETED>    (e) Refunds.--</DELETED>
        <DELETED>    (1) Authority.--</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (B) Limitation.--A civil penalty may not 
                be refunded under subparagraph (A) later than 2 years 
                after payment of the penalty.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (f) Effect of Other Convictions.--</DELETED>
        <DELETED>    (1) Denial of export privileges.--Any person 
        convicted of a violation of--</DELETED>
                <DELETED>    (A) a provision of this Act or the Export 
                Administration Act of 1979,</DELETED>
                <DELETED>    (B) a provision of the International 
                Emergency Economic Powers Act (50 U.S.C. 1701 et 
                seq.),</DELETED>
                <DELETED>    (C) section 793, 794, or 798 of title 18, 
                United States Code,</DELETED>
                <DELETED>    (D) section 4(b) of the Internal Security 
                Act of 1950 (50 U.S.C. 783(b)),</DELETED>
                <DELETED>    (E) section 38 of the Arms Export Control 
                Act (22 U.S.C. 2778),</DELETED>
                <DELETED>    (F) section 16 of the Trading with the 
                Enemy Act (50 U.S.C. App. 16),</DELETED>
                <DELETED>    (G) any regulation, license, or order 
                issued under any provision of law listed in 
                subparagraph (A), (B), (C), (D), (E), or (F),</DELETED>
                <DELETED>    (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,</DELETED>
                <DELETED>    (I) section 175 of title 18, United States 
                Code,</DELETED>
                <DELETED>    (J) a provision of the Atomic Energy Act 
                (42 U.S.C. 201 et seq.),</DELETED>
                <DELETED>    (K) section 831 of title 18, United States 
                Code, or</DELETED>
                <DELETED>    (L) section 2332a of title 18, United 
                States Code,</DELETED>
        <DELETED>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.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (g) Statute of Limitations.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (2) Exception.--</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>
2000
    (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.</DELETED>
<DELETED>    (h) Violations Defined by Regulation.--Nothing in this 
section shall limit the authority of the Secretary to define by 
regulation violations under this Act.</DELETED>
<DELETED>    (i) Construction.--Nothing in subsection (c), (d), (e), 
(f), or (g) limits--</DELETED>
        <DELETED>    (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;</DELETED>
        <DELETED>    (2) the authority to compromise and settle 
        administrative proceedings brought with respect to any such 
        violation; or</DELETED>
        <DELETED>    (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)).</DELETED>

<DELETED>SEC. 604. MULTILATERAL EXPORT CONTROL REGIME VIOLATION 
              SANCTIONS.</DELETED>

<DELETED>    (a) Imposition of Sanctions.--</DELETED>
        <DELETED>    (1) In general.--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--</DELETED>
                <DELETED>    (A) a foreign person has violated any 
                regulation issued by a country to control exports for 
                national security purposes pursuant to a multilateral 
                export control regime; and</DELETED>
                <DELETED>    (B) such violation has substantially aided 
                a country in--</DELETED>
                        <DELETED>    (i) acquiring military significant 
                        capabilities or weapons, if the country is an 
                        actual or potential adversary of the United 
                        States;</DELETED>
                        <DELETED>    (ii) acquiring nuclear weapons 
                        provided such country is other than the 
                        declared nuclear states of the People's 
                        Republic of China, the Republic of France, the 
                        Russian Federation, the United Kingdom, and the 
                        United States;</DELETED>
                        <DELETED>    (iii) acquiring biological or 
                        chemical weapons; or</DELETED>
                        <DELETED>    (iv) acquiring missiles.</DELETED>
        <DELETED>    (2) Notification of congress.--The President shall 
        notify Congress of each action taken under this 
        section.</DELETED>
<DELETED>    (b) Applicability and Forms of 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:</DELETED>
        <DELETED>    (1) A prohibition on contracting with, and the 
        procurement of products and services from, a sanctioned person, 
        by any department, agency, or instrumentality of the United 
        States Government.</DELETED>
        <DELETED>    (2) A prohibition on the importation into the 
        United States of all items produced by a sanctioned 
        person.</DELETED>
<DELETED>    (c) Exceptions.--The President shall not apply sanctions 
under this section--</DELETED>
        <DELETED>    (1) in the case of procurement of defense items--
        </DELETED>
                <DELETED>    (A) under existing contracts or 
                subcontracts, including the exercise of options for 
                production quantities to satisfy United States 
                operational military requirements;</DELETED>
                <DELETED>    (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 items and no alternative supplier can 
                be identified; or</DELETED>
                <DELETED>    (C) if the President determines that such 
                items are essential to the national security under 
                defense coproduction agreements;</DELETED>
        <DELETED>    (2) in any case in which such sanctions would 
        violate United States international obligations including 
        treaties, agreements, or understandings; or</DELETED>
        <DELETED>    (3) to--</DELETED>
                <DELETED>    (A) items 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 Congress of the 
                intention to impose the sanctions;</DELETED>
                <DELETED>    (B) after-market service and replacement 
                parts including upgrades;</DELETED>
                <DELETED>    (C) component parts, but not finished 
                products, essential to United States products or 
                productions; or</DELETED>
                <DELETED>    (D) information and technology.</DELETED>
<DELETED>    (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--</DELETED>
        <DELETED>    (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</DELETED>
        <DELETED>    (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 set forth in section 
        601(b)(2).</DELETED>
<DELETED>    (e) Subsequent Modifications of Sanctions.--The President 
may, after consultation with the Committee on Banking, Housing, and 
Urban Affairs of the Senate and the Committee on International 
Relations of the House of Representatives, 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--
</DELETED>
        <DELETED>    (1) the parent, affiliate, subsidiary, or 
        successor entity (as the case may be) has not, on the basis of 
        evidence available to the United States, itself violated the 
        export control regulation involved, either directly or through 
        a course of conduct;</DELETED>
        <DELETED>    (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 section 601(b)(2); and</DELETED>
        <DELETED>    (3) the parent, affiliate, subsidiary, or 
        successor e
2000
ntity, has instituted improvements in internal 
        controls sufficient to detect and prevent violations of the 
        multilateral export control regime.</DELETED>

<DELETED>SEC. 605. MISSILE PROLIFERATION CONTROL VIOLATIONS.</DELETED>

<DELETED>    (a) Violations by United States Persons.--</DELETED>
        <DELETED>    (1) Sanctions.--</DELETED>
                <DELETED>    (A) In general.--If the President 
                determines that a United States person knowingly--
                </DELETED>
                        <DELETED>    (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,</DELETED>
                        <DELETED>    (ii) conspires to or attempts to 
                        engage in such export, transfer, or trade, 
                        or</DELETED>
                        <DELETED>    (iii) facilitates such export, 
                        transfer, or trade by any other 
                        person,</DELETED>
                <DELETED>then the President shall impose the applicable 
                sanctions described in subparagraph (B).</DELETED>
                <DELETED>    (B) Sanctions described.--The sanctions 
                which apply to a United States person under 
                subparagraph (A) are the following:</DELETED>
                        <DELETED>    (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.</DELETED>
                        <DELETED>    (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.</DELETED>
        <DELETED>    (2) Discretionary sanctions.--In the case of any 
        determination referred to in paragraph (1), the Secretary may 
        pursue any other appropriate penalties under section 
        603.</DELETED>
        <DELETED>    (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--</DELETED>
                <DELETED>    (A) the item is essential to the national 
                security of the United States; and</DELETED>
                <DELETED>    (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.</DELETED>
<DELETED>    (b) Transfers of Missile Equipment or Technology by 
Foreign Persons.--</DELETED>
        <DELETED>    (1) Sanctions.--</DELETED>
                <DELETED>    (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--</DELETED>
                        <DELETED>    (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,</DELETED>
                        <DELETED>    (ii) conspires to or attempts to 
                        engage in such export, transfer, or trade, 
                        or</DELETED>
                        <DELETED>    (iii) facilitates such export, 
                        transfer, or trade by any other 
                        person,</DELETED>
                <DELETED>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).</DELETED>
                <DELETED>    (B) Sanctions described.--The sanctions 
                which apply to a foreign person under subparagraph (A) 
                are the following:</DELETED>
                        <DELETED>    (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.</DELETED>
                        <DELETED>    (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.</DELETED>
                        <DELETED>    (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.</DELETED>
        <DELETED>    (2) Inapplicability with respect to mtcr 
        adherents.--Paragraph (1) does not apply with respect to--
        </DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (B) any export, transfer, or trade of an 
                item to an end user in a country that is an MTCR 
                adherent.</DELETED>
        <DELETED>    (3) 
2000
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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (5) Waiver and report to congress.--</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (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--</DELETED>
                <DELETED>    (A) the product or service is essential to 
                the national security of the United States; 
                and</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (7) Exceptions.--The President shall not apply the 
        sanction under this subsection prohibiting the importation of 
        the products of a foreign person--</DELETED>
                <DELETED>    (A) in the case of procurement of defense 
                articles or defense services--</DELETED>
                        <DELETED>    (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;</DELETED>
                        <DELETED>    (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</DELETED>
                        <DELETED>    (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;</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (C) to--</DELETED>
                        <DELETED>    (i) spare parts,</DELETED>
                        <DELETED>    (ii) component parts, but not 
                        finished products, essential to United States 
                        products or production,</DELETED>
                        <DELETED>    (iii) routine services and 
                        maintenance of products, to the extent that 
                        alternative sources are not readily or 
                        reasonably available, or</DELETED>
                        <DELETED>    (iv) information and technology 
                        essential to United States products or 
                        production.</DELETED>
<DELETED>    (c) Definitions.--In this section:</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (4) MTCR annex.--The term ``MTCR Annex'' means the 
        Guidelines and Equipment and Technology Annex of the MTCR, and 
        any amendments thereto.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (6) Foreign person.--The term ``foreign person'' 
        means any person other than a United States person.</DELETED>
        <DELETED>    (7) Person.--</DELETED>
                <DELETED>    (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
2000
 group, and any 
                governmental entity operating as a business enterprise, 
                and any successor of any such entity.</DELETED>
                <DELETED>    (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--</DELETED>
                        <DELETED>    (i) all activities of that 
                        government relating to the development or 
                        production of any missile equipment or 
                        technology; and</DELETED>
                        <DELETED>    (ii) all activities of that 
                        government affecting the development or 
                        production of aircraft, electronics, and space 
                        systems or equipment.</DELETED>
        <DELETED>    (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.</DELETED>

<DELETED>SEC. 606. CHEMICAL AND BIOLOGICAL WEAPONS PROLIFERATION 
              SANCTIONS.</DELETED>

<DELETED>    (a) Imposition of Sanctions.--</DELETED>
        <DELETED>    (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--</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (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,</DELETED>
        <DELETED>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.</DELETED>
        <DELETED>    (2) Countries, projects, or entities receiving 
        assistance.--Paragraph (1) applies in the case of--</DELETED>
                <DELETED>    (A) any foreign country that the President 
                determines has, at any time after the date of enactment 
                of this Act--</DELETED>
                        <DELETED>    (i) used chemical or biological 
                        weapons in violation of international 
                        law;</DELETED>
                        <DELETED>    (ii) used lethal chemical or 
                        biological weapons against its own nationals; 
                        or</DELETED>
                        <DELETED>    (iii) made substantial 
                        preparations to engage in the activities 
                        described in clause (i) or (ii);</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (C) any other foreign country, project, or 
                entity designated by the President for purposes of this 
                section.</DELETED>
        <DELETED>    (3) Persons against which sanctions are to be 
        imposed.--Sanctions shall be imposed pursuant to paragraph (1) 
        on--</DELETED>
                <DELETED>    (A) the foreign person with respect to 
                which the President makes the determination described 
                in that paragraph;</DELETED>
                <DELETED>    (B) any successor entity to that foreign 
                person;</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (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.</DELETED>
<DELETED>    (b) Consultations With and Actions by Foreign Government 
of Jurisdiction.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (c) Sanctions.--</DELETED>
        <DELETED>    (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:</DELETED>
                <DELETED>    (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).</DELETED>
                <DELETED>    (B) Import sanctions.--The importation 
                into the United States of products produced by any 
                person described in subsection (a)(3) shall be 
                prohibited.</DELETED>
        <DELETED>    (2) Exceptions.--The President shall not be 
        required to apply or maintain sanctions under this section--
        </DELETED>
                <DELETED>    (A) in the case of procurement of defense 
                articles or
2000
 defense services--</DELETED>
                        <DELETED>    (i) under existing contracts or 
                        subcontracts, including the exercise of 
options for production quantities to satisfy United States operational 
military requirements;</DELETED>
                        <DELETED>    (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</DELETED>
                        <DELETED>    (iii) if the President determines 
                        that such articles or services are essential to 
                        the national security under defense 
                        coproduction agreements;</DELETED>
                <DELETED>    (B) to products or services provided under 
                contracts entered into before the date on which the 
                President publishes his intention to impose 
                sanctions;</DELETED>
                <DELETED>    (C) to--</DELETED>
                        <DELETED>    (i) spare parts,</DELETED>
                        <DELETED>    (ii) component parts, but not 
                        finished products, essential to United States 
                        products or production, or</DELETED>
                        <DELETED>    (iii) routine servicing and 
                        maintenance of products, to the extent that 
                        alternative sources are not readily or 
                        reasonably available;</DELETED>
                <DELETED>    (D) to information and technology 
                essential to United States products or production; 
                or</DELETED>
                <DELETED>    (E) to medical or other humanitarian 
                items.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (e) Waiver.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (f) Definition of Foreign Person.--For the purposes of 
this section, the term ``foreign person'' means--</DELETED>
        <DELETED>    (1) an individual who is not a citizen of the 
        United States or an alien admitted for permanent residence to 
        the United States; or</DELETED>
        <DELETED>    (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.</DELETED>

<DELETED>SEC. 607. ENFORCEMENT.</DELETED>

<DELETED>    (a) General Authority and Designation.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (2) General authorities.--</DELETED>
                <DELETED>    (A) Exercise of authority.--To the extent 
                necessary or appropriate to the enforcement of this 
                Act, officers or 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).</DELETED>
                <DELETED>    (B) Customs service.--In carrying out 
                enforcement authority under paragraph (3), the 
                Commissioner of Customs and employees of the United 
                States Customs Services 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 commodities or technology 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.</DELETED>
                <DELETED>    (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 602. 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.</DELETED>
                <DELETED>    (D) Agreements and arrangements.--The 
  
2000
              Secretary and the Commissioner of Customs may enter 
                into agreements and arrangements for the enforcement of 
                this Act, including foreign investigations and 
                information exchange.</DELETED>
        <DELETED>    (3) Specific authorities.--</DELETED>
                <DELETED>    (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:</DELETED>
                        <DELETED>    (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.</DELETED>
                        <DELETED>    (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.</DELETED>
                <DELETED>    (B) Actions by office of export 
                enforcement and customs service personnel.--</DELETED>
                        <DELETED>    (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:</DELETED>
                                <DELETED>    (I) Execute any warrant or 
                                other process issued by a court or 
                                officer of competent jurisdiction with 
                                respect to the enforcement of this 
                                Act.</DELETED>
                                <DELETED>    (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.</DELETED>
                                <DELETED>    (III) Carry 
                                firearms.</DELETED>
                        <DELETED>    (ii) OEE personnel.--Any officer 
                        and 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.</DELETED>
                <DELETED>    (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:</DELETED>
                        <DELETED>    (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.</DELETED>
                        <DELETED>    (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.</DELETED>
                        <DELETED>    (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.</DELETED>
        <DELETED>    (4) Other authorities not affected.--The 
        authorities conferred by this section are in addition to any 
        authorities conferred under other laws.</DELETED>
<DELETED>    (b) Forfeiture.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (2) Applicable laws.--Those provisions of law 
        relating to--</DELETED>
                <DELETED>    (A) the seizure, summary and judicial 
                forfeiture, and condemnation of property for violations 
                of the customs laws;</DELETED>
                <DELETED>    (B) the disposition of such property or 
                the proceeds from the sale thereof;</DELETED>
                <DELETED>    (C) the remission or mitigation of such 
                forfeitures; and</DELETED>
                <DELETED>    (D) the compromise of claims,</DELETED>
        <DELETED>shall apply to seizures and forfeitures incurred, or 
        alleged to have been incurred, under the 
2000
provisions of this 
        subsection, insofar as applicable and not inconsistent with 
        this Act.</DELETED>
        <DELETED>    (3) Forfeitures under customs laws.--Duties that 
        are imposed upon the customs officer or any other person with 
        respect to the seizure and forfeiture of property under the 
        customs laws may be performed with respect to seizures and 
        forfeitures of property under this subsection by the Secretary 
        or any officer or employee of the Department that may be 
        authorized or designated for that purpose by the Secretary, or, 
        upon the request of the Secretary, by any other agency that has 
        authority to manage and dispose of seized property.</DELETED>
<DELETED>    (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 603 or to 
the Attorney General for criminal action in accordance with this Act or 
to both the Secretary and the Attorney General.</DELETED>
<DELETED>    (d) Undercover Investigation Operations.--</DELETED>
        <DELETED>    (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--
        </DELETED>
                <DELETED>    (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);</DELETED>
                <DELETED>    (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;</DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (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,</DELETED>
        <DELETED>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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (4) Audit and report.--</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (B) Report.--The Secretary shall submit 
                annually to Congress a report, which may be included in 
                the annual report under section 801, specifying the 
                following information:</DELETED>
                        <DELETED>    (i) The number of undercover 
                        investigative operations pending as of the end 
                        of the period for which such report is 
                        submitted.</DELETED>
                        <DELETED>    (ii) The number of undercover 
                        investigative operations commenced in the 1-
                        year period preceding the period for which such 
                        report is submitted.</DELETED>
                        <DELETED>    (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.</DELETED>
        <DELETED>    (5) Definitions.--For purposes of paragraph (4)--
        </DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (B) the terms ``undercover investigative 
                operation'' and ``undercover operation
2000
'' mean any 
                undercover investigative operation conducted by the 
                OEE--</DELETED>
                        <DELETED>    (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</DELETED>
                        <DELETED>    (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).</DELETED>
<DELETED>    (e) Wiretaps.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (2) Conforming amendment.--Section 2516(1) of 
        title 18, United States Code, is amended by adding at the end 
        the following:</DELETED>
                <DELETED>    ``(q)(i) any violation of, or conspiracy 
                to violate, the Export Administration Act of 2001 or 
                the Export Administration Act of 1979.''.</DELETED>
<DELETED>    (f) Post-Shipment Verification.--</DELETED>
        <DELETED>    (1) In general.--The Secretary shall target post-
        shipment verifications to exports involving the greatest risk 
        to national security including, but not limited to, exports of 
        high performance computers.</DELETED>
        <DELETED>    (2) Repeal.--Section 1213 of the National Defense 
        Authorization Act for Fiscal Year 1998 is repealed.</DELETED>
<DELETED>    (g) Refusal To Allow Post-Shipment Verification.--
</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (3) Refusal by country.--If the country in which 
        the end-user is located refuses to allow post-shipment 
        verification of a controlled item, 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.</DELETED>
<DELETED>    (h) Award of Compensation; Patriot Provision.--</DELETED>
        <DELETED>    (1) In general.--If--</DELETED>
                <DELETED>    (A) any person, who is not an employee or 
                officer of the United States, furnishes to a United 
States attorney, to the Secretary of the Treasury or the Secretary, or 
to appropriate officials in the Department of the Treasury or the 
Department of Commerce, original information concerning a violation of 
this Act or any regulation, order, or license issued under this Act, 
which is being, or has been, perpetrated or contemplated by any other 
person and in which the person furnishing the information has not 
participated, and</DELETED>
                <DELETED>    (B) such information leads to the recovery 
                of any criminal fine, civil penalty, or 
                forfeiture,</DELETED>
        <DELETED>the Secretary and the Commissioner of Customs, may, in 
        the sole discretion of the Secretary or the Commissioner, award 
        and pay an amount that does not exceed 25 percent of the net 
        amount recovered.</DELETED>
        <DELETED>    (2) Dollar limitation.--The amount awarded and 
        paid to any person under this section may not exceed $250,000 
        for any case.</DELETED>
        <DELETED>    (3) Source of payment.--The amount paid under this 
        section shall be paid out of any penalties, forfeitures, or 
        appropriated funds.</DELETED>
<DELETED>    (i) 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.</DELETED>
<DELETED>    (j) End-Use Verification Authorization.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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:</DELETED>
                <DELETED>    (A) The activities of the overseas 
                investigators of the Department.</DELETED>
                <DELETED>    (B) The types of goods and technologies 
                that were subject to end-use verification.</DELETED>
                <DELETED>    (C) The ability of the Department's 
                investigators to detect the illegal transfer of high 
                risk, dual-use goods and technologies.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (k) 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.</DELETED>
<DELETED>    (l) 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.</DELETED>
<DELETED>    (m) 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 co
2000
mputer enforcement 
system.</DELETED>
<DELETED>    (n) 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.</DELETED>
<DELETED>    (o) Amendments to Title 31.--</DELETED>
        <DELETED>    (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''.</DELETED>
        <DELETED>    (2) Section 9703(a)(2)(B)(i) of title 31, United 
        States Code is amended (as added by Public Law 102-393)--
        </DELETED>
                <DELETED>    (A) by striking ``or'' at the end of 
                subclause (I);</DELETED>
                <DELETED>    (B) by inserting ``or'' at the end of 
                subclause (II); and</DELETED>
                <DELETED>    (C) by inserting at the end, the following 
                new subclause:</DELETED>
                                <DELETED>    ``(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;''.</DELETED>
        <DELETED>    (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.''.</DELETED>
<DELETED>    (p) Authorization for License Review Officers.--</DELETED>
        <DELETED>    (1) In general.--There is authorized to be 
        appropriated to the Department of Commerce $2,000,000 to hire 
        additional license review officers.</DELETED>
        <DELETED>    (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--</DELETED>
                <DELETED>    (A) train and certify, through a formal 
                program, new employees entering these positions for the 
                first time; and</DELETED>
                <DELETED>    (B) the ongoing professional training of 
                experienced employees on an as needed basis.</DELETED>
<DELETED>    (q) Authorization.--There are authorized to be 
appropriated to the Department of Commerce to carry out the purposes of 
this Act--</DELETED>
        <DELETED>    (1) $72,000,000 for the fiscal year 2002, of which 
        no less than $27,701,000 shall be used for compliance and 
        enforcement activities;</DELETED>
        <DELETED>    (2) $73,000,000 for the fiscal year 2003, of which 
        no less than $28,312,000 shall be used for compliance and 
        enforcement activities;</DELETED>
        <DELETED>    (3) $74,000,000 for the fiscal year 2004, of which 
        no less than $28,939,000 shall be used for compliance and 
        enforcement activities;</DELETED>
        <DELETED>    (4) $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</DELETED>
        <DELETED>    (5) 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.</DELETED>

<DELETED>SEC. 608. ADMINISTRATIVE PROCEDURE.</DELETED>

<DELETED>    (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.</DELETED>
<DELETED>    (b) Procedures Relating to Civil Penalties and 
Sanctions.--</DELETED>
        <DELETED>    (1) Administrative procedures.--Any administrative 
        sanction imposed under section 603 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.</DELETED>
        <DELETED>    (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 602 shall be made available 
        for public inspection and copying.</DELETED>
<DELETED>    (c) Collection.--If any person fails to pay a civil 
penalty imposed under section 603, 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.</DELETED>
<DELETED>    (d) Imposition of Temporary Denial Orders.--</DELETED>
        <DELETED>    (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 603, 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.</DELETED>
        <DELETED>    (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 
        afte
2000
r 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--
        </DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (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 603.</DELETED>
        <DELETED>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.</DELETED>
        <DELETED>    (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 the 
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 603. 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.</DELETED>
<DELETED>    (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.</DELETED>

 <DELETED>TITLE VII--EXPORT CONTROL AUTHORITY AND REGULATIONS</DELETED>

<DELETED>SEC. 701. EXPORT CONTROL AUTHORITY AND REGULATIONS.</DELETED>

<DELETED>    (a) Export Control Authority.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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.</DELETED>
<DELETED>    (b) Under Secretary of Commerce; Assistant Secretaries.--
</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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:</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (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.</DELETED>
<DELETED>    (c) Issuance of Regulations.--</DELETED>
        <DELETED>    (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(f) in formulating regulations under 
        this title. The second sentence of this subsection does not 
        require the concurrence or approval of any official, 
        department, or agency to which such regulations are 
        submitted.</DELETED>
        <DELETED>    (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(f) in amending regulations issued under this 
        Act.</DELETED>

<DELETED>SEC. 702. CONFIDENTIALITY OF INFORMATION.</DELETED>

<DELETED>    (a) Exemptions From Disclosure.--</DELETED>
        <DELETED>    (1) Information obtained on or before june 30, 
        1980.--Except as otherwise provided by the third sentence of 
        section 602(c)(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 
2000
disclosed, unless the 
        Secretary determines that the withholding thereof is contrary 
        to the national interest.</DELETED>
        <DELETED>    (2) Information obtained after june 30, 1980.--
        Except as otherwise provided by the third sentence of section 
        13(b)(2) of the Export Administration Act of 1979, 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--</DELETED>
                <DELETED>    (A) the export license or other export 
                authorization itself,</DELETED>
                <DELETED>    (B) classification requests described in 
                section 501(h),</DELETED>
                <DELETED>    (C) information or evidence obtained in 
                the course of any investigation,</DELETED>
                <DELETED>    (D) information obtained or furnished 
                under title VII in connection with any international 
                agreement, treaty, or other obligation, and</DELETED>
                <DELETED>    (E) information obtained in making the 
                determinations set forth in section 211 of this 
                Act,</DELETED>
        <DELETED>and information obtained in any investigation of an 
        alleged violation of section 602 of this Act except for 
        information required to be disclosed by section 602(c)(2) or 
        606(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.</DELETED>
<DELETED>    (b) Information to Congress and GAO.--</DELETED>
        <DELETED>    (1) In general.--Nothing in this title shall be 
        construed as authorizing the withholding of information from 
        Congress or from the General Accounting Office.</DELETED>
        <DELETED>    (2) Availability to the congress--</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (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.</DELETED>
        <DELETED>    (3) Availability to the gao.--</DELETED>
                <DELETED>    (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.</DELETED>
                <DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (d) Penalties for Disclosure of Confidential 
Information.--</DELETED>
        <DELETED>    (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--
        </DELETED>
                <DELETED>    (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</DELETED>
                <DELETED>    (B) is exempt from disclosure under this 
                section.</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (3) Civil penalties; administrative sanctions.--
        The Secretary may impose a civil penalty of not more than 
        $5,000 for each violation of paragraph (1). Any officer or 
        employee who commits such violation may also be removed from 
        office or employment for the violation of paragraph (1). 
        Subsections 603 (e), (g), (h), and (i) and 606 (a), (b), and 
        (c) shall apply to violations described in this 
        paragraph.</DELETED>

        <DELETED>TITLE VIII--MISCELLANEOUS PROVISIONS</DELETED>

<DELETED>SEC. 801. ANNUAL AND PERIODIC REPORTS.</DELETED>

<DELETED>    (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.</DELETED>
<DELETED>    (b) Report Elements.--Each such report shall include in 
detail--</DELETED>
        <DELETED>    (1) a description of the implementation of the 
        export control policies established by this A
2000
ct, including any 
        delegations of authority by the President and any other changes 
        in the exercise of delegated authority;</DELETED>
        <DELETED>    (2) a description of the changes to and the year-
        end status of country tiering and the Control List;</DELETED>
        <DELETED>    (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;</DELETED>
        <DELETED>    (4) a description of the regulations issued under 
        this Act;</DELETED>
        <DELETED>    (5) a description of organizational and procedural 
        changes undertaken in furtherance of this Act;</DELETED>
        <DELETED>    (6) a description of the enforcement activities, 
        violations, and sanctions imposed under section 604;</DELETED>
        <DELETED>    (7) a statistical summary of all applications and 
        notifications, including--</DELETED>
                <DELETED>    (A) the number of applications and 
                notifications pending review at the beginning of the 
                fiscal year;</DELETED>
                <DELETED>    (B) the number of notifications returned 
                and subject to full license procedure;</DELETED>
                <DELETED>    (C) the number of notifications with no 
                action required;</DELETED>
                <DELETED>    (D) the number of applications that were 
                approved, denied, or withdrawn, and the number of 
                applications where final action was taken; 
                and</DELETED>
                <DELETED>    (E) the number of applications and 
                notifications pending review at the end of the fiscal 
                year;</DELETED>
        <DELETED>    (8) summary of export license data by export 
        identification code and dollar value by country;</DELETED>
        <DELETED>    (9) an identification of processing time by--
        </DELETED>
                <DELETED>    (A) overall average, and</DELETED>
                <DELETED>    (B) top 25 export identification 
                codes;</DELETED>
        <DELETED>    (10) an assessment of the effectiveness of 
        multilateral regimes, and a description of negotiations 
        regarding export controls;</DELETED>
        <DELETED>    (11) a description of the significant differences 
        between the export control requirements of the United States 
        and those of other multilateral control regime members, the 
        specific differences between United States requirements and 
        those of other significant supplier countries, and a 
        description of the extent to which the executive branch intends 
to address the differences;</DELETED>
        <DELETED>    (12) an assessment of the costs of export 
        controls;</DELETED>
        <DELETED>    (13) a description of the progress made toward 
        achieving the goals established for the Department dealing with 
        export controls under the Government Performance Results Act; 
        and</DELETED>
        <DELETED>    (14) 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.</DELETED>
<DELETED>    (c) Congressional Notification.--Whenever the Secretary 
determines, in consultation with other appropriate departments and 
agencies, that a significant violation of this Act poses a direct and 
imminent threat to United States national security interests, the 
Secretary, in consultation with other appropriate departments and 
agencies, shall advise the Committee on Banking, Housing, and Urban 
Affairs of the Senate and the Committee on International Relations of 
the House of Representatives of such violation consistent with the 
protection of law enforcement sources, methods, and 
activities.</DELETED>
<DELETED>    (d) Federal Register Publication Requirements.--Whenever 
information under this Act is required to be published in the Federal 
Register, such information shall, in addition, be made available on the 
appropriate Internet website of the Department.</DELETED>

<DELETED>SEC. 802. TECHNICAL AND CONFORMING AMENDMENTS.</DELETED>

<DELETED>    (a) Repeal.--The Export Administration Act of 1979 (50 
U.S.C. App. 2401 et seq.) is repealed.</DELETED>
<DELETED>    (b) Energy Policy and Conservation Act.--</DELETED>
        <DELETED>    (1) Section 103 of the Energy Policy and 
        Conservation Act (42 U.S.C. 6212) is repealed.</DELETED>
        <DELETED>    (2) Section 251(d) of the Energy Policy and 
        Conservation Act (42 U.S.C. 6271(d)) is repealed.</DELETED>
<DELETED>    (c) Alaska Natural Gas Transportation Act.--Section 12 of 
the Alaska Natural Gas Transportation Act of 1976 (15 U.S.C. 719j) is 
repealed.</DELETED>
<DELETED>    (d) Mineral Leasing Act.--Section 28(u) of the Mineral 
Leasing Act (30 U.S.C. 185(u)) is repealed.</DELETED>
<DELETED>    (e) Exports of Alaskan North Slope Oil.--Section 28(s) of 
the Mineral Leasing Act (30 U.S.C. 185(s)) is repealed.</DELETED>
<DELETED>    (f) Disposition of Certain Naval Petroleum Reserve 
Products.--Section 7430(e) of title 10, United States Code, is 
repealed.</DELETED>
<DELETED>    (g) Outer Continental Shelf Lands Act.--Section 28 of the 
Outer Continental Shelf Lands Act (43 U.S.C. 1354) is 
repealed.</DELETED>
<DELETED>    (h) Arms Export Control Act.--</DELETED>
        <DELETED>    (1) Section 38 of the Arms Export Control Act (22 
        U.S.C. 2778) is amended--</DELETED>
                <DELETED>    (A) in subsection (e)--</DELETED>
                        <DELETED>    (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 603 of the Export Administration Act 
                        of 2001, by subsections (a) and (b) of section 
                        607 of such Act, and by section 702 of such 
                        Act,''; and</DELETED>
                        <DELETED>    (ii) in the third sentence, by 
                        striking ``11(c) of the Export Administration 
                        Act of 1979'' and inserting ``603(c) of the 
                        Export Administration Act of 2001''; 
                        and</DELETED>
                <DELETED>    (B) in subsection (g)(1)(A)(ii), by 
                inserting ``or section 603 of the Export Administration 
                Act of 2001'' after ``1979''.</DELETED>
        <DELETED>    (2) Section 39A(c) of the Arms Export Control Act 
        is amended--</DELETED>
                <DELETED>    (A) by striking ``subsections (c),'' and 
                all that follows through ``12(a) of such Act'' and 
                inserting ``subsections (c), (d), and (e) of section 
                603, section 608(c), and subsections (a) and (b) of 
                section 607, of the Export Administration Act of 
                2001''; and</DELETED>
                <DELETED>    (B) by striking ``11(c)'' and inserting 
                ``603(c)''.</DELETED>
        <DELETED>    (3) Section 40(k) of the Arms Export Control Act 
        (22 U.S.C. 2780(k)) is amended--</DELETED>
                <DELETED> 
2000
   (A) by striking ``11(c), 11(e), 11(g), and 
                12(a) of the Export Administration Act of 1979'' and 
                inserting ``603(b), 603(c), 603(e), 607(a), and 607(b) 
                of the Export Administration Act of 2001''; 
                and</DELETED>
                <DELETED>    (B) by striking ``11(c)'' and inserting 
                ``603(c)''.</DELETED>
<DELETED>    (i) Other Provisions of Law.--</DELETED>
        <DELETED>    (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''.</DELETED>
        <DELETED>    (2) Section 502B(a)(2) of the Foreign Assistance 
        Act of 1961 (22 U.S.C. 2304(a)(2)) is amended in the second 
        sentence--</DELETED>
                <DELETED>    (A) by striking ``Export Administration 
                Act of 1979'' the first place it appears and inserting 
                ``Export Administration Act of 2001''; and</DELETED>
                <DELETED>    (B) by striking ``Act of 1979)'' and 
                inserting ``Act of 2001)''.</DELETED>
        <DELETED>    (3) Section 140(a) of the Foreign Relations 
        Authorization Act, Fiscal Years 1988 and 1989 (22 U.S.C. 
        2656f(a)) is amended--</DELETED>
                <DELETED>    (A) in paragraph (1)(B), by inserting ``or 
                section 310 of the Export Administration Act of 2001'' 
                after ``Act of 1979''; and</DELETED>
                <DELETED>    (B) in paragraph (2), by inserting ``or 
                310 of the Export Administration Act of 2001'' after 
                ``6(j) of the Export Administration Act of 
                1979''.</DELETED>
        <DELETED>    (4) Section 40(e)(1) of the State Department Basic 
        Authorities Act of 1956 (22 U.S.C. 2712(e)(1)) is amended by 
        striking ``section 6(j)(1) of the Export Administration Act of 
        1979'' and inserting ``section 310 of the Export Administration 
        Act of 2001''.</DELETED>
        <DELETED>    (5) 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''.</DELETED>
        <DELETED>    (6) 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''.</DELETED>
        <DELETED>    (7) Section 203(b)(3) of the International 
        Emergency Economic Powers Act (50 U.S.C. 1702(b)(3)) is amended 
        by striking ``section 5 of the Export Administration Act of 
        1979, or under section 6 of such Act to the extent that such 
        controls promote the nonproliferation or antiterrorism policies 
        of the United States'' and inserting ``the Export 
        Administration Act of 2001''.</DELETED>
        <DELETED>    (8) 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''.</DELETED>
        <DELETED>    (9) Section 2332d(a) of title 18, United States 
        Code, is amended by striking ``section 6(j) of the Export 
        Administration Act of 1979 (50 U.S.C. App. 2405)'' and 
        inserting ``section 310 of the Export Administration Act of 
        2001''.</DELETED>
        <DELETED>    (10) 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''.</DELETED>
        <DELETED>    (11) 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''.</DELETED>
        <DELETED>    (12) Section 1956(c)(7)(D) of title 18, United 
        States Code, is amended by striking ``section 11 (relating to 
        violations) of the Export Administration of 1979'' and 
        inserting ``section 603 (relating to penalties) of the Export 
        Administration Act of 2001''.</DELETED>

<DELETED>SEC. 803. SAVINGS PROVISIONS.</DELETED>

<DELETED>    (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--</DELETED>
        <DELETED>    (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</DELETED>
        <DELETED>    (2) those provisions of the Arms Export Control 
        Act which are amended by section 802,</DELETED>
<DELETED>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.</DELETED>
<DELETED>    (b) Administrative and Judicial Proceedings.--</DELETED>
        <DELETED>    (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.</DELETED>
        <DELETED>    (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 802, 
        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 802.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (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.</DELETED>
<DELETED>    (e) Implementation.--The Secretary shall make any 
revisions
2000
 to the Export Administration regulations required by this Act 
no later than 180 days after the date of enactment of this 
Act.</DELETED>

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.

   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--MISCELLANEOUS PROVISIONS

Sec. 701. Annual report.
Sec. 702. Technical and conforming amendments.
Sec. 703. Savings provisions.

SEC. 2. DEFINITIONS.

     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; or
                            (iii) 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 tems. 
        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 `
2000
`person'' includes--
                    (A) any individual, or 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 
        (in this Act referred to as the ``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.
    (e) Regulations.--The Secretary may prescribe such regulations as 
are necessary to carry out the provisions of this Act.

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, 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 
      
2000
  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 intelligence agencies, and 
        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.--Notwithstanding any other 
provision of this title, 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.
    (d) Enhanced Controls.--
            (1) In general.--Notwithstanding any other provisions 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 would constitute a significant 
        threat to the national security of the United States and that 
        such item requires enhanced control. If the President 
        determines that enhanced control should apply to such item, the 
        item may be excluded from the provisions of section 204, 
        section 211, or both, until such time as the President shall 
        determine that such enhanced control should no longer apply to 
        such item. The President may not delegate the authority 
        provided for in this subsection.
            (2) Report to congress.--The President shall promptly 
        report any 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.

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 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 provided 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 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 it
2000
ems 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 such 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 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 including 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 capabilities regarding chemical, 
        biological, and nuclear weapons and the country's membership 
        in, and level of compliance with, relevant multilateral export 
        control regimes.
            (4) The country's capabilities regarding missile systems 
        and the country's membership in, 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 as defined in section 2(14) pursuant to an 
        international agreement to which the United States is a party.
            (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.
    (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;
2000
 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, or
            (3) upon receipt of a petition filed by an interested 
        party,
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 party 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, Secretary of 
        State, and other appropriate Government agencies and with the 
        Office of Technology Evaluation (established pursuant to 
        section 214).
            (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, the properties, nature, 
                and quality of the item.
                    (B) Directly competitive item.--
                            (i) In general.--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.
                            (ii) Exception.--An item is not directly 
                        competitive with a controlled item if the item 
                        is substantially inferior 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 
2000
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 an
2000
d 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.
    (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 date on which the President reports to 
                Congress the President's intention to impose controls 
                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 control is initially imposed or the date on which 
                the President reports to Congress the President's 
                intention to impose controls 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 
expo
2000
rt 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) a conclusion that the probable achievement of 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 the 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 criter
2000
ia 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 on the date notice 
of the termination is 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, as defined in section 2(14); 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 be approved for export by the Secretary only pursuant 
to an individual export license. 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,
except that, if the Secretary does not agree with the Secretary of 
State with respect to any determination under paragraph (1) or (2), the 
matter shall be referred to the President for resolution.
    (b) Exception.--The provisions of this section shall not apply with 
respect to exports to countries that are members of the North Atlantic 
Treat
2000
y Organization or to Japan, Australia, or New Zealand, or to such 
other countries as the President shall designate consistent with the 
purposes of this section and section 502B of the Foreign Assistance Act 
of 1961 (22 U.S.C. 2304).

   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;
                            (ii) 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;
                            (iii) ensure that the classification stated 
                        on the application for the export items is 
                        correct; and
                            (iv) 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 in a prompt and responsible manner on an 
        application. 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 referral departments 
        and agencies to issue or deny the license--
                  
2000
  (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 the referral 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 applicant shall be informed in writing, consistent 
        with the protection of intelligence information sources and 
        methods, by the Secretary 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.--Delays upon which the 
        Secretary and the applicant mutually agree.
            (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.
    (h) Classification Requests and Other Inquiries.--
            (1) Classification requests.--In any case in which the 
        Secretary receives a written request asking for the proper 
        classification of an item on the Control List or the 
        applicability of licensing requirements under this title, the 
        Secretary shall promptly notify the Secretary of Defense and 
the head of any department or agency the Secretary considers 
appropriate. The Secretary shall, within 14 days after receiving the 
request, inform the person making the request of the proper 
classification.
            (2) Other inquiries.--In any case in which the Secretary 
        receives a written request for information 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. INTERAGEN
2000
CY 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--
                    (A) provide for decision-making based on the 
                majority vote of the participating departments and 
                agencies;
                    (B) provide that a department or agency that fails 
                to take a timely position, citing the specific 
                statutory and regulatory bases for a position, shall be 
                deemed to have no objection to the pending decision;
                    (C) provide that any decision of an interagency 
                committee established under paragraph (1) or 
                interagency dispute resolution process established 
                under this paragraph may be escalated to the next 
                higher level of review at the request of an official 
                appointed by the President, by and with the advice of 
                the Senate, or an officer properly acting in such 
                capacity, of a department or agency that participated 
                in the interagency committee or dispute resolution 
                process that made the decision; and
                    (D) ensure that matters are resolved or referred to 
                the President not later than 90 days after the date 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
2000
 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 
   
2000
             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 patt
2000
ern 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 an
2000
y 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 ge
2000
neral.--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 
                contra
2000
cts 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 additio
2000
nal 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 
                emplo
2000
yees 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
2000
 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 
        a
2000
ccordance 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)(i) any violation of, or conspiracy to 
                violate, the Export Administration Act of 2001 or the 
                Export Administration Act of 1979.''.
    (f) Post-Shipment Verification.--The Secretary shall target post-
shipment verifications to exports involving the greatest risk to 
national security.
    (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.--If the country in which the end-
        user is located refuses to allow post-shipment verification of 
        a controlled item, 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 complia
2000
nce 
                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) Limitation.--The authority granted by this Act shall 
        terminate on September 30, 2004, unless the President carries 
        out the following duties:
                    (A) Provides to Congress a detailed report on--
                            (i) the implementation and operation of 
                        this Act; and
                            (ii) the operation of United States export 
                        controls in general.
                    (B)(i) Provides to Congress legislative reform 
                proposals in connection with the report described in 
                subparagraph (A); or
                    (ii) certifies to Congress that no legislative 
                reforms are necessary in connection with such report.

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 Presid
2000
ent 
        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.

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,
                    (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 intel
2000
ligence, 
                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). 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--MISCELLANEOUS PROVISIONS

SEC. 701. 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; and
            (15) 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. 702. 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) is 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.--
            (1) Section 38 of the Arms Export Control Act (22 U.S.C. 
        2778) is amended--
                    (A) in subsection (e)--
                            (i) in the first sentence, by striking 
                        ``subsections (c)'' and all that follows 
                        through ``12 of such Act,'' and inserting 
                        ``subsections (b), (c), (d) and (e) of 
2000
section 
                        503 of the Export Administration Act of 2001, 
                        by subsections (a) and (b) of section 506 of 
                        such Act, and by section 602 of such Act,''; 
                        and
                            (ii) 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''; and
                    (B) in subsection (g)(1)(A)(ii), by inserting ``or 
                section 503 of the Export Administration Act of 2001'' 
                after ``1979''.
            (2) Section 39A(c) of the Arms Export Control Act (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''; and
                    (B) by striking ``11(c)'' and inserting ``503(c)''.
            (3) Section 40(k) of the Arms Export Control Act (22 U.S.C. 
        2780(k)) is amended--
                    (A) by striking ``11(c), 11(e), 11(g), and 12(a) of 
                the Export Administration Act of 1979'' and inserting 
                ``503(b), 503(c), 503(e), 506(a), and 506(b) of the 
                Export Administration Act of 2001''; and
                    (B) by striking ``11(c)'' and inserting ``503(c)''.
    (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) Section 502B(a)(2) of the Foreign Assistance Act of 
        1961 (22 U.S.C. 2304(a)(2)) is amended in the second sentence--
                    (A) by striking ``Export Administration Act of 
                1979'' the first place it appears and inserting 
                ``Export Administration Act of 2001''; and
                    (B) by striking ``Act of 1979)'' and inserting 
                ``Act of 2001)''.
            (3) 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 310 of the 
                Export Administration Act of 2001'' after ``6(j) of the 
                Export Administration Act of 1979''.
            (4) Section 40(e)(1) of the State Department Basic 
        Authorities Act of 1956 (22 U.S.C. 2712(e)(1)) is amended by 
        striking ``section 6(j)(1) of the Export Administration Act of 
        1979'' and inserting ``section 310 of the Export Administration 
        Act of 2001''.
            (5) 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 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''.
            (7) Section 203(b)(3) of the International Emergency 
        Economic Powers Act (50 U.S.C. 1702(b)(3)) is amended by 
        striking ``section 5 of the Export Administration Act of 1979, 
        or under section 6 of such Act to the extent that such controls 
        promote the nonproliferation or antiterrorism policies of the 
        United States'' and inserting ``the Export Administration Act 
        of 2001''.
            (8) 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''.
            (9) Section 2332d(a) of title 18, United States Code, is 
        amended by striking ``section 6(j) of the Export Administration 
        Act of 1979 (50 U.S.C. App. 2405)'' and inserting ``section 310 
        of the Export Administration Act of 2001''.
            (10) 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''.
            (11) 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''.
            (12) Section 1956(c)(7)(D) of title 18, United States Code, 
        is amended by striking ``section 11 (relating to violations) of 
        the Export Administration of 1979'' and inserting ``section 503 
        (relating to penalties) of the Export Administration Act of 
        2001''.
            (13) 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.
            (14) Section 904(2)(B) of the Trade Sanctions Reform and 
        Export Enhancement Act of 2000 is amended by striking ``Export 
        Administration Act of 1979'' and inserting ``Export 
        Administration Act of 2001''.
            (15) 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 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. 703. 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, 
b06
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.




                                                        Calendar No. 26

107th CONGRESS

  1st Session

                                 S. 149

                          [Report No. 107-10]

_______________________________________________________________________

                                 A BILL

    To provide authority to control exports, and for other purposes.

_______________________________________________________________________

                             April 2, 2001

                       Reported with an amendment

0