104th CONGRESS 1st Session To provide authority to control exports, and for other purposes. IN THE HOUSE OF REPRESENTATIVES January 4, 1995 Mr. Roth introduced the following bill; which was referred to the Committee on International Relations 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, SECTION 1. SHORT TITLE. This Act may be cited as the `Omnibus Export Administration Act of 1995'. SEC. 2. TABLE OF CONTENTS. The table of contents of this Act is as follows: Sec. 1. Short title. Sec. 2. Table of contents. TITLE I--EXPORT ADMINISTRATION Sec. 101. Short title. Sec. 102. Findings. Sec. 103. Policy statement. Sec. 104. General provisions. Sec. 105. Multilateral controls. Sec. 106. Emergency controls. Sec. 107. Short supply controls. Sec. 108. Foreign boycotts. Sec. 109. Procedures for processing export license applications; other inquiries. Sec. 110. Violations. Sec. 111. Controlling proliferation activity. Sec. 112. Administrative and judicial review. Sec. 113. Enforcement. Sec. 114. Export control authorities and procedures. Sec. 115. Annual report. Sec. 116. Definitions. Sec. 117. Effects on other Acts. Sec. 118. Secondary Arab boycott. Sec. 119. Conforming amendments to other laws. Sec. 120. Expiration date. Sec. 121. Savings provision. TITLE II--NUCLEAR PROLIFERATION PREVENTION ACT Sec. 201. Short title. PART A--REPORTING ON NUCLEAR EXPORTS Sec. 211. Reports to Congress. Sec. 212. Effective date. PART B--SANCTIONS FOR NUCLEAR PROLIFERATION Sec. 221. Imposition of sanctions on persons engaging in export activities that contribute to proliferation. Sec. 222. Eligibility for assistance. Sec. 223. Role of international financial institutions. Sec. 224. Prohibition on assisting nuclear proliferation through the provision of financing. Sec. 225. Export-Import Bank. Sec. 226. Sanctions against countries involved in transfer of nuclear weapons or design information or components. Sec. 227. Amendment to the Arms Export Control Act. Sec. 228. Reward. Sec. 229. Reports. Sec. 230. Technical correction. Sec. 231. Definitions. Sec. 232. Effective date. PART C--INTERNATIONAL ATOMIC ENERGY AGENCY Sec. 241. Bilateral and multilateral initiatives. Sec. 242. IAEA internal reforms. Sec. 243. Reporting requirement. Sec. 244. Definitions. PART D--REPEAL OF DUPLICATIVE PROVISIONS Sec. 251. Repeal. TITLE I--EXPORT ADMINISTRATION SEC. 101. SHORT TITLE. This title may be cited as the `Export Act of 1995'. SEC. 102. FINDINGS. The Congress makes the following findings: (1) Export controls are a part of a comprehensive response to national security threats. United States exports should be restricted only for critical national security, nonproliferation, and foreign policy reasons. (2) Exports of certain commodities and technology may adversely affect the national security of the United States by making a direct and significant contribution to the military potential of individual countries or by disseminating the capability to produce or use weapons of mass destruction. Therefore, the administration of export controls should emphasize the control of these exports. (3) The acquisition of dual use commodities and technology by those countries and end users whose actions or policies run counter to United States national security interests may enhance the military capabilities of those countries, particularly their ability to produce and deliver nuclear, chemical, and biological weapons. This enhancement threatens the security of the United States and its allies, and places additional demands on the defense budget of the United States. Availability to certain countries and end users of items that contribute to certain military capabilities or the proliferation of weapons of mass destruction is a fundamental concern of the United States and should be eliminated through negotiations and other appropriate means whenever possible. (4) Exporting is critical to the economic health of the United States and, therefore, to its national security as well. With the growing importance of exports to sustained United States economic growth and vitality, restrictions on exports must be evaluated in terms of their effects on the United States economy as well as on its national security. Restrictions on exports from the United States have had serious adverse effects on economic competitiveness and domestic employment, particularly when restraints applied by the United States have been more extensive than those imposed by other countries or when United States export control policy is uncertain. (5) Export controls cannot be the sole instrument of the United States to prevent a country or end user from developing weapons of mass destruction. For this reason, export controls should be applied as part of a comprehensive response to security threats. (6) The national security of the United States depends not only on wise foreign policies and a strong defense, but also a vibrant national economy. To be truly effective, export controls should be applied uniformly by all suppliers. (7) Effective export controls also must be focused only on those items that materially contribute to a country's or an end user's military potential or potential to produce or use weapons of mass destruction. (8) Unilateral export controls are generally not effective in influencing the behavior of other governments or impeding access to controlled countries of controlled items. In most situations, unilateral controls alone impede access to United States sources of supply without affecting the ability of controlled countries to obtain controlled items elsewhere. Moreover, unilateral controls permit foreign competitors to serve markets the United States Government denies to United States firms and workers, thus impairing the reliability of United States suppliers in comparison with their foreign competitors. At the same time, the need to lead the international community or overriding national security or foreign policy interests may justify unilateral controls in specific cases. (9) The United States recognizes the importance of comprehensive enforcement measures to maximize the effectiveness of multilateral controls. (10) The United States export control system must not be overly restrictive or bureaucratic, or undermine the competitive position of American industry. The export control system must be efficient, responsive, transparent, and effective. (11) Export restrictions that negatively affect the United States industrial base ultimately weaken United States military capabilities and lead to dependencies on foreign sources for key components. (12) Minimization of restrictions on exports of agricultural commodities and products is of critical importance to the maintenance of a sound agricultural sector, to a positive contribution to the balance of payments, to reducing the level of Federal expenditures for agricultural support programs, and to United States cooperation in efforts to eliminate malnutrition and world hunger. SEC. 103. POLICY STATEMENT. It is the policy of the United States to do the following: (1) To stem the proliferation of weapons of mass destruction and the means to deliver them by-- (A) leading international efforts to control the proliferation of chemical, biological, and nuclear weapons and missiles; (B) controlling involvement of United States persons in, and contributions by United States persons to, foreign programs intended to develop weapons of mass destruction or missiles and the means to design, develop, produce, stockpile, or use them; and (C) implementing international treaties or other agreements that require controls on exports of designated items, reports on the production, processing, consumption, and exports of such items, and compliance with verification programs. (2) To restrict the export of items that would directly and significantly contribute to the military potential of countries so as to pose a threat to the national security of the United States or its allies. (3) To-- (A) minimize uncertainties in export control policy; and (B) encourage trade with all countries with which the United States has diplomatic or trading relations, except those countries with which such trade has been determined by the President to be against the national interest, and to strongly encourage the trading partners of the United States not to trade with those other countries. (4) To restrict export trade when necessary to protect the domestic economy from the excessive drain of scarce materials and to reduce the serious inflationary impact of foreign demand. (5) To increase the effectiveness of and the reliance of the United States upon multilateral coordination of controls through effective export control regimes that-- (A) clearly identify countries and entities to which, and end uses for which, exports of items are to be controlled, (B) incorporate lists of controlled items that are critical to the control objectives, (C) establish uniform criteria and procedures for licensing, and (D) implement means to curtail member countries from granting licenses that render ineffective license denials by the United States. (6) To impose unilateral controls, under the procedures and conditions set forth in section 106, only when it is essential to the national security or foreign policy of the United States, and only after full consideration of the economic impact of the controls and their effectiveness in achieving their intended objectives. (7) To make all licensing determinations in a timely manner so undue delays in the licensing process will not cause a United States firm to lose an export sale. (8) To maintain a presumption of approval of license applications for authority to export items for civil end use. (9) To use export controls to encourage other countries to take immediate steps to prevent the use of their territories or resources to aid, encourage, or give sanctuary to those persons involved in directing, supporting, or participating in acts of international terrorism. (10)(A) To counteract restrictive trade practices or boycotts fostered or imposed by foreign countries against other countries friendly to the United States or against any United States person. (B) To encourage and, in specified cases, require United States persons engaged in the export of commodities, technology, and other information to refuse to take actions, including furnishing information or entering into or implementing agreements, which have the effect of furthering or supporting the restrictive trade practices or boycotts fostered or imposed by any foreign country against a country friendly to the United States or against any United States person. (11) To consolidate export control functions and increase administrative accountability, and thereby better serve the exporting public by reducing and eliminating overlapping, conflicting, and inconsistent regulatory burdens. (12) To minimize restrictions on the export of agricultural commodities and products. SEC. 104. GENERAL PROVISIONS. (a) Types of Licenses: Under such conditions as the Secretary may impose, consistent with the provisions of this title, and subject to paragraph (2)(B), the Secretary may require the following types of licenses for exports of commodities and technology controlled under this title: (1) Specific exports and reexports: An individual validated license, authorizing a specific export. (2) Multiple exports and reexports: (A) Validated licenses authorizing multiple exports, in lieu of an individual validated license for each such export. (B)(i) A distribution license, authorizing multiple exports of general application computers to any country other than a sanctioned country. The Secretary shall grant such distribution licenses strictly on the basis of the reliability of the applicant and foreign consignees with respect to the prevention of diversion of commodities or technology, consistent with section 105(a)(1). Not later than 30 days after an application is submitted under section 109 for such a distribution license to export general application computers, the Secretary shall grant the license with respect to such distributors and end users that the Secretary determines to be reliable. The Secretary may deny the license application with respect to those distributors and end users that present a risk of diversion of commodities or technology, directly or indirectly, consistent with the provisions of section 105(a)(1). (ii) For purposes of this subparagraph, a `sanctioned country' is any country-- (I) the government of which the Secretary of State has determined to be a government that has repeatedly provided support for acts of international terrorism; or (II) against which the United States maintains an embargo on all, or substantially all, exports pursuant to the International Emergency Economic Powers Act or the Trading With The Enemy Act. (iii) For purposes of this subparagraph, the term `general application computers' means any computer system, computer networking equipment, peripheral to a computer system, or combination thereof, on which export controls are in effect under section 105, except the following: (I) Supercomputers. (II) Computers specially designed for use in connection with the capability described in subparagraph (A) or (B) of section 105(a)(1). (III) Computers specially designed for use in connection with the surreptitious interception of wire or oral communications. (b) General Prohibition: Notwithstanding any other provision of this title, no person may export any item which such person knows will materially contribute to a program or activity for the design, development, or manufacture of a weapon of mass destruction or missile in a country that is not a member of, or a cooperating country with respect to, an export control regime controlling such weapon or missile. (c) United States Commodity Control Index: (1) In general: The Secretary shall-- (A) establish and maintain a United States Commodity Control Index which shall identify all commodities and technology on which controls are imposed under this title; (B) specify the license requirements applicable to the items on the control index; and (C) designate countries, and end uses or end users, to which exports of commodities and technology are controlled. (2) Contents: The control index shall-- (A) consist of a security control list of all commodities and technology on which export controls are imposed under section 105, an emergency control list of all commodities and technology on which export controls are imposed under section 106, and a short supply control list of all commodities on which export controls are imposed under section 107; (B) for each item on the control index, specify with particularity the performance (where applicable) and other identifying characteristics of the item and provide a rationale for why the item is on the control list; (C) identify countries, and end uses or end users, to which exports are controlled, including specific projects and end users of concern, cross-referenced with the list of commodities and technology on which export controls are imposed; and (D) be sufficiently specific and clear as to guide exporters and licensing officers in determinations of licensing requirements under this title. (3) Licensing of control index commodities and technology: A validated license may be required for the export of those commodities and technology that are specifically and clearly identified on the control index to countries, end uses, and end users so designated on the control index. No authority or permission may be required to export commodities and technology not so identified to any country, end use, or end user not so designated. (d) Delegation of Authority: Subject to the provisions of this title, the President may delegate the power, authority, and discretion conferred upon the President by this title to such departments, agencies, and officials of the Government as the President considers appropriate, except that no authority under this title may be delegated to, or exercised by, any official of any department or agency the head of which is not appointed by the President, by and with the advice and consent of the Senate. The President may not delegate or transfer his power, authority, or discretion to overrule or modify any recommendation or decision made by the Secretary, the Secretary of Defense, or the Secretary of State under this title and may not delegate the authority under section 106(a)(4). (e) Notification of the Public; Consultation With Business: The Secretary shall keep the public fully apprised of changes in export control policy and procedures instituted in conformity with this title with a view to encouraging trade. The Secretary shall consult regularly with representatives of a broad spectrum of enterprises, labor organizations, and citizens interested in or affected by export controls, in order to obtain their views on United States export control policy and the foreign availability of items subject to controls. (f) Export Advisory Committees: (1) Appointment: Upon his or her own initiative or upon the written request of representatives of a substantial segment of any industry which produces any items subject to export controls under this title or being considered for such controls, the Secretary shall appoint export advisory committees with respect to any such items. Each such committee shall consist of representatives of United States industry and Government, including the Department of Commerce and other appropriate departments and agencies of the Government. The Secretary shall permit the widest possible participation by the business community on the export advisory committees. (2) Functions: Export advisory committees appointed under paragraph (1) shall advise and assist the Secretary, and any other department, agency, or official of the Government carrying out functions under this title, on actions (including all aspects of controls imposed or proposed) designed to carry out the policies of this title concerning the items with respect to which such export advisory committees were appointed. Such committees, where they have expertise in such matters, shall be consulted on questions involving-- (A) technical matters, (B) worldwide availability and actual utilization of production technology, (C) licensing procedures which affect the level of export controls applicable to any items, (D) revisions of the security control list (as provided in section 105(j)), including proposed revisions of multilateral controls in which the United States participates, (E) the issuance of regulations, (F) the impact and interpretation of existing regulations, (G) processes and procedures for review of licenses and policy, (H) any other questions relating to actions designed to carry out this title, and (I) the operation and conduct of international business transactions. Nothing in this subsection shall prevent the United States Government from consulting, at any time, with any person representing an industry or the general public, regardless of whether such person is a member of an export advisory committee. Members of the public shall be given a reasonable opportunity, pursuant to regulations prescribed by the Secretary, to present evidence to such committees. (3) Reimbursement of expenses: Upon the request of any member of any export advisory committee appointed under paragraph (1), the Secretary may, if the Secretary determines it to be appropriate, reimburse such member for travel, subsistence, and other necessary expenses incurred by such member in connection with the duties of such member. (4) Chairperson: Each export advisory committee appointed under paragraph (1) shall elect a chairperson, and shall meet at least every 3 months at the call of the chairperson, unless the chairperson determines, in consultation with the other members of the committee, that such a meeting is not necessary to achieve the purposes of this subsection. Each such committee shall be terminated after a period of 2 years, unless extended by the Secretary for additional periods of 2 years each. The Secretary shall consult each such committee on such termination or extension of that committee. (5) Access to information: To facilitate the work of the export advisory committees appointed under paragraph (1), the Secretary, in conjunction with other departments and agencies participating in the administration of this title, shall disclose to each such committee adequate information, consistent with national security, pertaining to the reasons for the export controls which are in effect or contemplated for the items or policies for which that committee furnishes advice. (6) Policy advice: The Secretary shall appoint a group of knowledgeable individuals from businesses affected by export controls to provide advice to the Secretary on export control policy issues. The chairperson of such group shall represent export advisory committees regarding review of control lists maintained by export control regimes and United States proposals to export control regimes. (g) Development and Review of the Control List: The Secretary of State, in consultation with appropriate departments and agencies, shall be responsible for conducting negotiations with other countries regarding multilateral arrangements for restricting the export of items to carry out the policies of this title. All appropriate departments and agencies shall consult among themselves and with the appropriate export advisory committees appointed under subsection (f) to develop initial technical parameters and product definitions in connection with the development of proposals within the United States Government to be made to multilateral regimes. (h) Right of Export: No authority or permission to export may be required under this title, or under regulations issued under this title, except to carry out the policies set forth in section 103. (i) International Obligations Under Treaties: Notwithstanding any other provision of this title containing limitations on authority to control exports, the Secretary, in consultation with the Secretary of State, may impose controls on exports to a particular country or countries in order to fulfill obligations of the United States under resolutions of the United Nations and under treaties to which the United States is a party. (j) Fees: No fee may be charged in connection with the submission or processing of an export license application under this title. SEC. 105. MULTILATERAL CONTROLS. (a) Authority: (1) In general: In order to carry out the policies set forth in paragraphs (1), (2), and (5) of section 103, the President may, in accordance with this section, prohibit or curtail the export of any commodities or technology subject to the jurisdiction of the United States, or exported by any person subject to the jurisdiction of the United States, if such commodities or technology-- (A) would directly and significantly enable a country or end user to acquire the capability to develop, produce, stockpile, use, or deliver weapons of mass destruction; or (B) would directly and significantly contribute to the military capability of a country so as to pose a threat to the national security of the United States or its allies. (2) Exercise of authority: The authority granted by this subsection shall be implemented by means of export licenses required by the Secretary. (3) Consistency with export control regimes: Any provision of this title that provides that no authority or permission to export may be required under this section shall not apply to the extent that the applicable export control regime provides otherwise. (b) Security Control List: (1) In general: (A) The Secretary shall, in consultation with appropriate departments and agencies, establish and maintain, as part of the control index, a security control list, comprised of all commodities and technology on which export controls are in effect under this section, and the countries, and end uses or end users, to which the controls apply. The security control list shall clearly identify the specific commodities and technology the export of which is controlled, and each country, and end use or end user, to which such exports are controlled. (B) If a determination is made, with respect to the inclusion of items on the security control list, that affects the items controlled by an export control regime, the Secretary of State shall propose to that regime any revisions that would be necessary as a result of the determination. Such determination shall become effective only to the extent such revisions are agreed to by the export control regime. (2) Controlled commodities and technology: Export controls shall be imposed under this section if, and may be imposed under this section only if, the export controls are agreed to by an export control regime which includes export control purposes, items subject to control, policy of review for license applications, and all controlled destinations, and end uses or end users. (3) Controlled countries, end uses, and end users: A country shall be designated a controlled country, and an end use or end user shall be designated a controlled end use or controlled end user, with respect to a particular commodity or technology on the security control list if exports of such commodity or technology to such country, end use, or end user are controlled multilaterally pursuant to the agreement of an export control regime described in paragraph (2). (c) Export Licensing Policies for Controlled Countries and Controlled End Uses or End Users: (1) Exports to controlled countries, and end uses or end users: (A) In general: The Secretary shall require authority or permission to export commodities and technology on the security control list to a controlled country, a controlled end use, or a controlled end user. (B) Presumption of approval for civil end uses: Subject to subparagraph (C), applications to export commodities or technology for civil end uses shall carry a presumption of approval. (C) Presumption of denial for controlled end users: Exports to controlled end users of commodities or technology on which controls are in effect under this section shall carry a presumption of denial. (D) Basis for denial: Licenses may be denied under this section only if the commodity or technology meets the requirements of subparagraph (A) or (B) of subsection (a)(1). (2) Civil end use: A determination under paragraph (1)(B) of whether commodities or technology are for civil end use shall be based on the following criteria: (A) Whether the stated end use is civil. (B) Whether the civil application of the commodities or technology is well established in countries other than controlled countries. (C) Whether the commodities or technology proposed for export are reasonable in quantity and quality for the proposed end use. (D) The risk of diversion to an unauthorized use or consignee, including whether such diversion can be verified. (d) Export Control Regimes and Licensing Policies: For the purposes of creating effective multilateral export controls and strengthening the controls imposed by export control regimes, the Secretary of State shall, with respect to each export control regime, pursue negotiations with other members of such regime to accomplish the following objectives: (1) Development of a common list of commodities and technology to which export controls are applied, and a common list of countries, and end uses or end users, to which exports are controlled, by members of the regime. (2) Agreement on the same treatment, to be applied by all members of the regime, of exports and reexports to members of the regime, cooperating countries, and other countries that are not controlled countries. (3) National procedures resulting in comparable implementation and enforcement of export controls among the members of the regime, including laws providing appropriate civil and criminal penalties and statutes of limitations sufficient to deter potential violations. (4) Periodic meetings of high-level representatives of governments participating in the regime for the purpose of coordinating national export control policies and issuing policy guidance for dissemination to exporters in participating countries. (5) Establishment of procedures for regular consultation among members of the regime on proposed export license applications that includes consultation with individuals with sufficient technical expertise to assess the licensing status of exports and to ensure the reliability of end users. (6) An enforcement mechanism that provides authority for adequately trained enforcement officers to investigate and prevent illegal exports. (7) Development of a system of export control documentation to verify the movement of commodities and technology. (8) Establishment of procedures for the coordination and sharing of information on licensing, end users, and enforcement. (9) The application of adequate national resources to carry out paragraphs (1) through (8). (e) Incentives for Countries To Participate in or Cooperate With Export Control Regimes: (1) General rule for regimes: Unless the Secretary, in consultation with the Secretary of State, determines that an existing export control regime has failed to meet the objectives set forth in subsection (d), exports to all countries that are members of, or cooperating countries with respect to, that regime shall be subject to the licensing treatment set forth in this subsection. The Secretary shall publish each determination under this paragraph in the Federal Register. (2) Favorable licensing treatment: Subject to paragraphs (3) and (4), unless an export control regime is the subject of a determination under paragraph (1), no authority or permission may be required for exports of any commodity or technology controlled by that regime to or among members of that regime or cooperating countries with respect to that regime. (3) Exception: If the Secretary determines that a member of an export control regime, a cooperating country with respect to such regime, or an end user in a country that is such a regime member or in such a cooperating country is engaging in a pattern and practice of noncompliance with controls agreed to by the regime-- (A) if the license treatment under paragraph (2) is provided by the United States unilaterally, the Secretary shall terminate such treatment with respect to that noncomplying member, cooperating country, or end user during the period in which the determination is in effect; or (B) in any other case the Secretary shall seek a similar determination by the other members of the regime concerning such noncompliance and, if such a determination is made, the Secretary shall propose the suspension of favorable licensing treatment of exports to that noncomplying regime member, cooperating country, or end user by all members of the regime during the period in which that determination is in effect. (4) Exception for exports to certain countries: (A) Should some of the members of an export control regime decide to require licenses for the export to other members of the regime or to cooperating countries of certain items controlled by the regime, the United States may require such licenses if-- (i) the Secretary determines that a preponderance of the world's supply of the items involved would be subject to such export license requirements; or (ii) after making a determination that a preponderance of the world's supply of the items involved would not be subject to such export license requirements, the Secretary, in consultation with the Secretary of State and the Secretary of Defense, determines that the absence of a requirement of export licenses for such items to such members of the regime or cooperating countries would prove detrimental to the national security of the United States. In any case in which the Secretary makes a determination under clause (ii), the Secretary shall publish that determination, together with a concise statement of its basis and the estimated impact of the determination. (B) The Secretary shall notify the Congress at least 30 days before a license requirement described in subparagraph (A) goes into effect. (f) Creation and Enhancement of Multilateral Control Regimes: (1) Expansion of membership of regimes: For each existing export control regime and for each export control regime the United States seeks to create, the Secretary of State, in consultation with the Secretary, shall seek-- (A) to expand the membership of the regime to include all countries that produce or export items controlled pursuant to agreement by the regime and share the objectives of the regime; (B) the adoption of procedures for effective implementation of the rules and guidelines of the regime through uniform and consistent interpretations of export controls agreed to by the regime; (C) agreement to create a secretariat, for each regime that seeks the prevention of the proliferation of weapons of mass destruction or missiles, that would call regular meetings of members of the regime and establish rules for the regime; and (D) agreement within each regime not to render ineffective the denial of licenses by other regime members and to establish procedures for the coordination and regular exchange of information about such denials. (2) Terrorist threats to regime members: (A) Presumption of denial for licenses: For each existing export control regime and for each export control regime the United States seeks to create, the Secretary of State, in consultation with the Secretary, shall pursue negotiations with other members of such regime to establish a presumption of denial for licenses for exports that would directly contribute to acts of terrorism directed at 1 or more regime members: (B) Reports to congress: The Secretary shall annually report to the Committee on International Relations of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate on the progress made toward meeting the objectives set forth in subparagraph (A). (3) Disclosure of nonproprietary information: The Secretary of State shall propose the following to each export control regime: (A) Full disclosure on a confidential basis to all members of the regime of all nonproprietary information relating to all licenses granted for the export of items controlled by the regime, consistent with the protection of intelligence sources and methods. (B) A list of controlled items of particular sensitivity for which such disclosure shall be given 15 days before the license is issued. (g) Transparency of Multilateral Control Regimes: (1) Publication of information on each existing regime: Within 6 months after the date of the enactment of this Act, the Secretary shall publish in the Federal Register the following information with respect to export controls agreed to by each multilateral control regime existing on the date of the enactment of this Act: (A) Purposes of the controls. (B) Members of the regime. (C) Licensing policy. (D) Items subject to the controls, together with all public notes, understandings, and other aspects of the agreement of the regime, and all changes thereto. (E) Controlled countries, controlled end uses, and, to the extent not inconsistent with requirements of the regime, controlled end users. (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) Information regarding controlled end users: The United States shall propose to each export control regime to permit a member of the regime to publish the controlled end users (including projects of concern) agreed to by the regime. (3) New regimes: Within 2 months after joining or organizing a new export control regime, the Secretary shall publish the information described in subparagraphs (A) through (H) of paragraph (1). (4) Publication of changes: The Secretary shall publish in the Federal Register any changes in the information published under this subsection within 2 months after the applicable regime adopts such changes. (h) Effectiveness of Multilateral Control Regimes and Implementation by Their Members: (1) Annual evaluation: At least once each year, the Secretary shall evaluate the effectiveness of each export control regime and the effectiveness of the implementation of the regime by each of its members, including the United States. Such evaluation shall be included in the annual report issued under section 115. (2) Contents: The evaluation under paragraph (1) shall include the following for the calendar year for which the report is issued: (A) Items not controlled by the export control regime that the United States believes should be controlled if the regime is to achieve its control purposes effectively. (B) Countries that are sources of foreign availability for each item controlled by agreement of the regime. Such countries shall include members of the regime, cooperating countries with respect to the regime, and countries that are not members of the regime. (C) Countries that are risks for diverting controlled items to controlled countries, end uses, or end users. (D) Members of the regime that have not, in the judgment of the Secretary, implemented the objectives set forth in subsection (d). (E) The extent to which the regime and each of its members have adopted and are implementing uniform licensing policies. (F) The extent to which the licensing policy of the regime and each of its members adequately prevents the export licensing decisions of one member of the regime from rendering ineffective the denial of license applications by another member. (3) Comments: Before beginning each evaluation under this subsection, the Secretary shall request comments from the public and the export advisory committees appointed under section 104(f) regarding the effectiveness of each export control regime. The Secretary shall give the public at least 30 days to provide comments under this paragraph. (i) Foreign Availability: (1) Foreign availability to controlled countries: (A) In general: The Secretary, in consultation with the Secretary of Defense, other appropriate Government departments and agencies, and appropriate export advisory committees appointed under section 104(f), shall review, on a continuing basis, the availability of controlled items to controlled countries from sources outside the United States, including countries that participate with the United States in export control regimes. (B) Items controlled by cocom: (i) In any case in which the Secretary determines under paragraph (3), in accordance with procedures and criteria which the Secretary shall establish by regulation, that any item controlled for export pursuant to the agreement of COCOM is available in fact, or will be available in fact within 2 years in the future, to controlled countries from sources outside the United States in sufficient quantity and of comparable quality so that the requirement of a validated license for the export of such item is or would be ineffective in achieving the purposes of this section-- (I) the President shall propose to COCOM that export controls on such item be eliminated, or (II) if the President determines that the absence of export controls on the item would prove detrimental to the national security of the United States, the President shall actively pursue negotiations with the governments of the appropriate foreign countries for the purpose of eliminating such availability. No later than the commencement of such negotiations, the President shall notify in writing the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on 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. (ii) If, within 6 months after the President's determination under clause (i)(II) that export controls be maintained notwithstanding foreign availability, the foreign availability has not been eliminated, the Secretary may not, after the end of that 6-month period, require a validated license for the export of the item involved. The President may extend the 6-month period for an additional period of 12 months if the President certifies to the Congress that the negotiations involved are progressing and that the absence of the export controls involved would prove detrimental to the national security of the United States. (C) Items controlled by other regimes: (i) In any case in which the Secretary determines under paragraph (3), in accordance with procedures and criteria which the Secretary shall establish by regulation, that any item controlled for export pursuant to an export control regime other than COCOM is available in fact, or will be available in fact within 2 years in the future, to controlled countries from sources outside the United States in sufficient quantity and of comparable quality so that the requirement of a validated license for the export of such item is or would be ineffective in achieving the purposes of this section, the President shall actively pursue negotiations with the governments of the appropriate foreign countries for the purpose of eliminating such availability. No later than the commencement of such negotiations, the President shall notify in writing the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on International Relations of the House of Representatives that the President has begun such negotiations, indicating whether the President believes it is important that export controls on the item involved be maintained to avoid a significant risk to the national security interests of the United States. (ii) If, within 120 days after a determination of foreign availability described in clause (i) is made, the foreign person or persons that are or will be the source of such foreign availability have not taken the steps necessary to eliminate such availability, the President shall propose to the export control regime controlling the commodities or technology that are the subject of the foreign availability determination-- (I) that such controls be eliminated, or (II) that the members of the regime impose all of the sanctions described in clause (iii) on such foreign person or persons. (iii) The sanctions referred to in clause (ii) to be imposed on a foreign person or persons are the following: (I) A prohibition on the export to such person or persons of all items controlled by such export control regime. (II) A prohibition on the import of all goods that are produced by such person or persons. (III) A prohibition on procurement by such governments of any services, commodities, technology, or other products from or produced by such person or persons. (iv) If, within 90 days after a proposal under clause (ii)(II) regarding sanctions is made to an export control regime, such regime has not agreed to such proposal, the President shall either propose to such regime that the export controls on the commodities or technology that are the subject of the foreign availability determination be eliminated, or report to the Congress that the President has determined that elimination of the controls would create a significant risk to the national security interests of the United States. Such report shall include the basis for such determination. (2) Notice of all foreign availability assessments: Whenever the Secretary undertakes a foreign availability assessment under this subsection, the Secretary shall publish notice of such assessment in the Federal Register. (3) Procedures for making determinations: (A) Procedures: (i) The Secretary shall make a foreign availability determination under paragraph (1) on the Secretary's own initiative, upon the certification of an export advisory committee appointed under section 104(f) with respect to the commodities or technology concerning which the certification is made, or upon receipt of an allegation from an export license applicant that such availability exists. In making any such determination, the Secretary shall accept the representations of applicants made in writing and supported by reasonable evidence, unless such representations are contradicted by reliable evidence, including scientific or physical examination, expert opinion based upon adequate factual information, or intelligence information. (ii) In making determinations of foreign availability, the Secretary may consider such factors as cost, reliability, the availability and reliability of spare parts and the cost and quality thereof, maintenance programs, durability, quality of end products produced by the item subject to the determination, and scale of production. (iii) For purposes of this subparagraph, the term `evidence' may include such items as foreign manufacturers' catalogues, brochures, operations or maintenance manuals, articles from reputable trade publications, photographs, and depositions based upon eyewitness accounts. (B) Certifications by export advisory committees: At the same time as an export advisory committee submits a certification to the Secretary under subparagraph (A)(i), the committee shall submit the certification to the Congress. The Secretary shall investigate the foreign availability so certified and, not later than 90 days after the certification is made, shall submit a report to the export advisory committee and the Congress stating that-- (i) the foreign availability does exist, and the applicable steps are being taken under paragraph (1); or (ii) the foreign availability does not exist. To the extent necessary, the report may be submitted on a classified basis. (C) Allegations by export license applicants: Within 4 months after receiving an allegation described in subparagraph (A)(i) from an export license applicant, the Secretary shall determine whether the foreign availability exists, and shall so notify the applicant. If the Secretary has determined that the foreign availability exists, the Secretary shall, upon making such determination, submit the determination for review to other departments and agencies as the Secretary considers appropriate. The Secretary's determination of foreign availability shall not require the concurrence or approval of any such department or agency. Not later than 30 days after the Secretary makes the determination, the Secretary shall respond in writing to the applicant and submit for publication in the Federal Register, that-- (i) the foreign availability does exist, and the applicable steps are being taken under paragraph (1); or (ii) the foreign availability does not exist. (4) Sharing of information: Each department or agency of the United States, including any intelligence agency, and all contractors with any such department or agency, shall, upon the request of the Secretary and consistent with the protection of intelligence sources and methods as determined by the Director of Central Intelligence, furnish information to the Department of Commerce concerning foreign availability of items subject to export controls under this section, including allowing access to any information from a laboratory or other facility within such department or agency. (5) Congressional notifications: The Secretary shall annually notify the Committee on Foreign Affairs of the House of Representatives, and the Committee on Banking, Housing, and Urban Affairs of the Senate, of all allegations of foreign availability received from export license applicants under paragraph (3), and the actions the Secretary has taken pursuant to such allegations. (j) Review of Controlled Items: (1) In general: The Secretary shall review all commodities and technology on the security control list maintained under subsection (b) at least annually. At the conclusion of each review, the Secretary shall justify the inclusion of each item on the security control list, remove items from the security control list, change the specifications of items on the list, or add items to the list, in order to meet the requirements of subsection (a)(1). The data developed from such reviews shall be used in formulating United States proposals for revision of multilateral controls in the applicable export control regimes. (2) Considerations: In conducting the annual review, the Secretary shall-- (A) consult with the appropriate export advisory committees appointed under section 104(f) and consider recommendations of such committees with respect to proposed changes in the security control list; (B) consider the results of foreign availability determinations made under subsection (i); (C) consider comments received pursuant to the notice of review provided under paragraph (3)(B); and (D) consult with other appropriate departments or agencies. (3) Procedures: (A) Duration of review: The annual review required under paragraph (1) may not extend beyond 180 days after such review is begun. (B) Notice of review: Before beginning each annual review, the Secretary shall publish a notice of that review in the Federal Register and shall provide a 30-day period for comments and submission of data, with or without oral presentation, by interested Government agencies, exporters, and other interested parties. (C) Revisions: The Secretary shall make a determination of any revisions in the security control list not later than 30 days after the end of the review period. In making such determination, the Secretary shall consult with the appropriate departments or agencies. The concurrence or approval of any other department or agency shall not be required before any such revision is made. (D) Proposals to export control regimes: If a revision of the security control list under this paragraph affects the items controlled by an export control regime, the Secretary of State shall propose such revision to that regime. Such revision shall become effective only to the extent such revision is agreed to by the export control regime. (E) Publication of revisions: The Secretary shall publish in the Federal Register any revisions in the list, with an explanation of the reasons for the revisions. (k) Indexing: The Secretary shall develop, with the assistance of the export advisory committees appointed under section 104(f), methodologies and procedures for indexing items on the security control list where performance capabilities are relevant and measurable. Such methodologies and procedures shall provide for increases in the performance levels of commodities and technology on the security control list and shall provide for the technical specifications below which no authority or permission to export is required as compared to the most technologically advanced commercially available version of the same or equivalent commodities or technology. Such methodologies and procedures shall be published in the Federal Register and used in the annual review of the security control list under subsection (j). (l) Review of Export Controls on Computer Equipment and Technology: (1) In general: In order to ensure that requirements of validated licenses are periodically removed as computer equipment, computer communications and networking equipment, computer software, and related technology, that are subject to such requirements become obsolete with respect to the specific objectives of the export controls requiring such licenses, the Secretary shall conduct periodic reviews of such controls. The Secretary shall complete such a review not later than 6 months after the date of the enactment of this Act, and thereafter as part of the reviews conducted under subsection (j). (2) Review elements: In conducting each review under paragraph (1), the Secretary shall do the following with respect to the export controls described in paragraph (1): (A) Objectives of controls: The Secretary shall identify the specific objectives of the export controls, as part of a comprehensive strategy to prevent the proliferation of weapons of mass destruction, for the 12-month period following completion of the review, for each country or group of countries for which a validated license is required. When an objective of an export control is to defer the development of a specific capability in such country or group of countries, the Secretary shall specify for what period of time the controls are expected to defer such capability. (B) Quantity and performance: The Secretary shall estimate, for the 12-month period described in subparagraph (A), the quantity and performance (measured in Composite Theoretical Performance or other relevant performance metrics) of computer systems that must be obtained by each country or group of countries for which a validated license is required in order to defeat the objectives of the export controls. (C) Availability to controlled destinations: The Secretary shall evaluate the effectiveness of the export controls in achieving their specific objectives, including explicit descriptions of the availability from sources outside the United States, during the 12-month period described in subparagraph (A), to controlled countries of computer equipment, computer communications and networking equipment, computer software, and related technology on which the export controls are in effect. (D) Economic impact: The Secretary shall evaluate the economic impact, during the 12-month period described in subparagraph (A), of the export controls on exporting companies, including estimates of lost sales, loss in market share, and administrative overhead. (3) Increase in thresholds: (A) Increases: After completing each review under this subsection, the Secretary shall, after consultation with appropriate departments or agencies, increase, if warranted by the findings of the review, the following export control thresholds, consistent with the obligations of the United States under export control regimes: (i) The performance levels at which computer systems are eligible for delivery under a distribution license or other license authorizing multiple exports. (ii) The performance levels defining a `supercomputer'. (iii) The performance levels at which an individual validated license is required for the export to a controlled country of computer systems and peripherals, software, parts, and communications equipment normally supplied with such computer systems. In any recommendation for or publication of such increase, the Secretary shall include the specific rationale for the increase. (B) Proposals to multilateral regimes: The Secretary of State shall, within 30 days after a determination by the Secretary to increase thresholds, propose to the other members of the applicable export control regime the elimination of the applicable controls on the items with respect to which such determination is made, in accordance with the procedures of the regime, and publish a notice of such proposal in the Federal Register. (4) Report: The Secretary shall transmit to the Congress, and to any export advisory committee appointed under section 104(f) with respect to computer systems, a report on the findings of each review conducted under this subsection, addressing each requirement set forth in paragraph (2). (5) Hearings: The Secretary shall conduct public hearings not less than once each year in order to solicit information from all interested parties on all matters to be addressed in each review conducted under this subsection. (6) Removal of controls on mass-market computer equipment: (A) Mass-market computer equipment defined: For purposes of this paragraph, the term `mass-market computer equipment' means any computer system, computer networking equipment, peripheral to a computer system, part or subassembly of a computer system, or combination thereof, on which export controls are in effect under this section, and which will have been installed for end use outside the United States in a quantity exceeding 100,000 units over a 12-month period, as determined under subparagraph (B). (B) Anticipatory review of mass-market computer equipment: Not later than-- (i) 6 months after the date of the enactment of this Act, and (ii) the end of each 1-year period occurring thereafter, the Secretary shall, in consultation with the Computer Systems Technical Advisory Committee (or successor export advisory committee), industry groups, and computer equipment producers, identify those items described in subparagraph (A) (including computer systems differentiated in terms of Composite Theoretical Performance) that will be installed for end use outside the United States in a quantity exceeding 100,000 units during the 12-month period beginning on the applicable date described in clause (i) or (ii). For purposes of this paragraph, estimates of numbers of items that will be installed shall be based on reliable estimates provided by producers of such items. (C) Action by the secretary: Not later than 30 days after an item is determined by the Secretary under subparagraph (B) to be mass-market computer equipment, the Secretary of State shall propose to the export control regime controlling the equipment the eliminaton of controls on such equipment in accordance with the procedures of the appropriate regime and shall publish a notice of such proposal in the Federal Register. (m) Trade Shows: Consistent with the agreements of applicable multilateral export control regimes, an application for a license for the export to a controlled country of any commodity on which export controls are in effect under this section, without regard to the technical specifications of the commodity, for the purpose of demonstration or exhibition at a trade show shall carry a presumption of approval if-- (1) the United States exporter retains title to, and maintains effective control of, the commodity, and complies with any safeguard requirement imposed by the Secretary, during the entire period in which the commodity is in the controlled country; and (2) the exporter removes the commodity from the controlled country within a reasonable period of time after the conclusion of the trade show, as defined in regulations issued by the Secretary. (n) Study on Computer Export Controls: (1) Arrangements for and content of study: (A) Arrangements for conducting study: The Secretary, not later than 60 days after the date of the enactment of this Act, shall enter into appropriate arrangements with the National Academy of Sciences and the National Academy of Engineering (hereafter in this subsection referred to as the `Academies') to conduct a comprehensive study on the extent to which exports of computers can be effectively controlled, and the policy reasons for maintaining such controls. (B) Requirement of study: Recognizing the need to enhance the competitiveness of the United States computer industry while preventing sensitive technology from being used to develop weapons of mass destruction by controlled countries, the study shall-- (i) examine the trends of the computer industry, including those toward new and more powerful computer systems based upon `Parallel Computing' and `Virtual Parallel Processing', and their effect on the extent to which exports of computer systems can be effectively controlled, with respect to the factors described in clause (ii); (ii) examine the factors that make it increasingly difficult to control the export of computers, including the size and expandability of many modern computer systems and the availability of such computer systems from foreign sources; and (iii) the effect of export controls on the competitiveness of the United States computer industry. (2) Advisory panel: In conducting the study under paragraph (1), the Academies shall appoint an Advisory Panel of not more than 12 members who shall be selected from among individuals who, by virtue of their experience and expertise, are knowledgeable in relevant scientific, business, legal, or administrative matters. No individual may serve as a member who is an elected or appointed official or employee in the executive, legislative, or judicial branch of any government. In selecting members of the Advisory Panel, the Academies shall seek suggestions from the President, the Congress, and representatives of industry and the academic community. (3) Executive branch cooperation: The Secretary, the Secretary of Defense, the Secretary of State, the Director of the Central Intelligence Agency, and the head of any department or agency that exercises authority under this title-- (A) shall furnish to the Academies, upon request and under appropriate safeguards, classified or unclassified information which the Academies determine to be necessary for the purposes of conducting the study required by this subsection; and (B) shall work with the Academies on such problems related to the study as the Academies consider necessary. (4) Report: Under the direction of the Advisory Panel, the Academies shall prepare and submit to the President and the Congress, not later than 9 months after entering into the arrangements referred to in paragraph (1), a report which contains a detailed statement of findings and conclusions of the Academies from the study conducted under paragraph (1), together with their recommendations for the complete removal of controls from computers or specifying the level of technology to which controls on computers should be reduced. SEC. 106. EMERGENCY CONTROLS. (a) Authority: (1) In general: In order to carry out the policy set forth in paragraphs (6) and (9) of section 103, the President may, in accordance with the provisions of this section, unilaterally prohibit or curtail the export of any commodity or technology 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 section shall be exercised by the Secretary, in consultation with the Secretary of State, the Secretary of Defense, and such other departments and agencies as the President considers appropriate. (3) Expiration of authority: (A) In general: Any controls imposed under this section shall expire 6 months after they are imposed, unless they are terminated earlier by the President or unless they are extended under this section, except that such controls may be adopted as multilateral controls under section 105 or included in an embargo described in subsection (f)(1) that is imposed by the President under the International Emergency Economic Powers Act, the Trading with the Enemy Act, or other provision of law other than this title. Any extension or subsequent extension of the controls under this section shall be for a period of not more than 1 year each. The controls shall expire at the end of each such extension unless they are terminated earlier by the President or unless they are further extended under this section, except that such controls may be adopted as multilateral controls under section 105 or included in an embargo described in the first sentence of this subparagraph. (B) Exception for multilateral agreements: Subparagraph (A) shall not apply to controls imposed by the President in order to fulfill obligations of the United States under resolutions of the United Nations or under treaties to which the United States is a party. If such a resolution or treaty ceases to be in effect, controls imposed by the President pursuant to such resolution or treaty shall immediately cease to be in effect. (4) Criteria: The President may impose controls under this section only if the President-- (A) determines that the controls are essential to the national security or foreign policy of the United States or its allies, including the prevention of acts of international terrorism; (B) determines that no other alternative means can achieve the national security or foreign policy objectives of the United States within a reasonable period of time, including all other possible sanctions; (C) determines that the controls can reasonably be expected to achieve their intended objectives after having taken into consideration other factors, including the availability from one or more countries of comparable commodities and technology to those on which the controls are to be imposed; (D) determines that the United States has the ability to enforce all aspects of the proposed controls effectively; (E) determines that the effect of the proposed controls on the export performance of the United States, the competitive position of the United States as a supplier of items, or on the economic well-being of individual United States companies and their employees and communities does not exceed the benefits to the foreign policy or national security interests of the United States; and (F) dentifies those commodities and technology to be controlled, determines that they must be controlled in order to achieve the intended purpose of the controls, and describes the reasons for selecting such items. (5) Negotiations: The President shall commence, through the Secretary of State, within 10 days after the imposition of controls under this section, negotiations with other countries to adopt the controls so that such controls may be imposed under section 105, unless such controls are imposed under paragraph (3)(B). (b) Consultation With Industry: The Secretary in every possible instance shall consult with and seek advice from affected United States industries and export advisory committees appointed under section 104(f) before the imposition, expansion, or extension of any export control under this section. (c) Consultation With Other Countries: When expanding or extending export controls under this section (unless such action is taken under subsection (a)(3)(B)), the Secretary of State, in consultation with the Secretary, shall, at the earliest appropriate opportunity, consult with the countries with which the United States maintains export controls cooperatively, and with other countries, as appropriate, to advise them of the reasons for the action and to urge them to adopt similar controls, so that the controls may be imposed under section 105. (d) Consultations With the Congress: (1) Consultations: The Secretary may impose, expand, or extend export controls under this section only after consultation with the Congress, including the Committee on International Relations of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate. (2) Reports: The Secretary may not impose or expand controls under subsection (a) until the Secretary has submitted to the Congress a report-- (A) addressing each of the criteria set forth in subparagraphs (A) through (F) of subsection (a)(4); (B) specifying the purpose of the controls; (C) describing the nature, the subjects, and the results of, or plans for, the consultation with industry under subsection (b) and with other countries under subsections (a)(5) and (c); (D) specifying the nature and results of any alternative means attempted to achieve the objectives of the controls, or the reasons for imposing or expanding the controls without attempting any such alternative means; and (E) describing the availability from other countries of items comparable to the items subject to the controls, and describing the nature and results of the efforts made to secure the cooperation of foreign governments in controlling the foreign availability of such comparable commodities or technology. Such report shall also indicate how such controls will further significantly the policies of the United States as set forth in section 103 or will further its declared international obligations. (3) Submission of report to gao: Each report required by paragraph (2) shall, at the same time it is submitted to the Congress, also be submitted to the General Accounting Office for the purpose of assessing the report's full compliance with the purpose of this subsection. (e) Seeking Multilateral Support for Unilateral Controls: The Secretary and the Secretary of State shall have a continuing duty to seek support, by other countries and by multilateral export control regimes, for all controls imposed under this section. (f) Procedures and Limitations on Emergency Controls: (1) Imposition of an embargo: An embargo under subsection (a)(3)(A) shall include the prohibition of all exports to and imports from the country against which the controls under this section were imposed, except that such an embargo need not include a prohibition on exports of items described in section 114(k). (2) Cessation of emergency controls: (A) In general: Controls imposed under this section on commodities or technology shall cease to be in effect immediately upon-- (i) the imposition of multilateral controls under section 105 on the same commodities and technology to the country or end user, or for the end use, with respect to which the controls were imposed under this section; or (ii) the imposition, under the International Emergency Economic Powers Act, the Trading with the Enemy Act, or other provision of law, of an embargo described in paragraph (1). (B) Conversion to multilateral agreements: If the President imposes controls on commodities or technology to a country or end user, or for an end use, under this section in order to fulfill obligations of the United States under resolutions of the United Nations or under a treaty to which the United States is a party, any controls imposed prior thereto under this section on the same commodities or technology to the same country or end user, or for the same end use, shall immediately cease to be in effect. (3) Limitations on reimposition: Controls which have ceased to be in effect under subsection (a)(3), and which have not been extended under subsection (g), may not be reimposed by the President under subsection (a) for a period of 6 months beginning on the date on which the original controls expire. (g) Extension of Emergency Controls: (1) Report: If the President decides to extend controls imposed under subsection (a), which are due to expire under subsection (a)(3), the President shall, not later than 60 calendar days before the expiration of such controls, transmit to the Congress a report on the proposed extension, setting forth the reasons for the proposed extension in detail and specifying the period of time, which may not exceed 1 year, for which the controls are proposed to be extended. In particular, such report shall-- (A) contain determinations by the President-- (i) that the controls continue to be essential to the national security or foreign policy of the United States; (ii) that no other alternative means can achieve the national security or foreign policy objectives of the United States within a reasonable period of time, as described in subsection (a)(4)(B); (iii) that the United States has demonstrated the ability to enforce all aspects of the controls effectively; and (iv) that the effect of the controls on those factors described in subsection (a)(4)(E) has not exceeded the benefits to the foreign policy or national security interests of the United States; (B) identify those commodities and technology to be controlled, specify that they must be controlled in order to achieve the intended purpose of the controls, and describe the reasons for the selection of such items; (C) specify the reasons why negotiations required under subsection (a)(5) or (c) failed to result in the adoption of the controls under section 105, and the prospects for the multilateral adoption of such controls; (D) specify the reasons why an embargo described in paragraph (1) is not presently justified to achieve the national security or foreign policy objectives of the United States; (E) include an assessment by the Secretary of the economic consequences of the controls during the preceding 4 months (in the case of the first extension of the controls under this section) or during the preceding 10 months (in the case of any subsequent extension of the controls under this section), including estimates of any lost United States exports and jobs; (F) include an assessment by the Secretary of State of the objectives of the controls and the extent to which the controls have attained those objectives during the preceding 4 months (in the case of the first extension of the controls under this section) or during the preceding 10 months (in the case of any subsequent extension of the controls under this section); and (G) include an assessment by the Secretary of Defense of the impact the controls have had on the national security of the United States in the preceding 4 months (in the case of the first extension of the controls under this section) or in the preceding 10 months (in the case of any subsequent extension of the controls under this section). (2) Consideration of extension: The controls shall remain in effect unless the Congress, within 60 calendar days after its receipt of the report under paragraph (1), enacts a joint resolution pursuant to paragraph (3) disapproving the extension of the controls. Any controls remaining in effect shall continue for the period specified in the report or until terminated by the President, whichever occurs first, but in no case longer than 1 year after the date on which the controls would otherwise expire under subsection (a)(3), unless the Congress by law terminates the controls. If the Congress, within 60 calendar days after the date of its receipt of such report, enacts a joint resolution disapproving the extension of such controls, then such controls shall cease to be effective upon the expiration of that 60-day period. (3) Joint resolutions: (A) Definition: For purposes of this paragraph, the term `joint resolution' means only a joint resolution the matter after the resolving clause of which is as follows: `That, pursuant to section 106(g) of the Export Act of 1995, the President may not extend emergency controls as specified in the report submitted to the Congress on XXXXXXXXXX.', with the blank space being filled with the appropriate date. (B) Introduction: On the day on which a report is submitted to the House of Representatives and the Senate under paragraph (1), a joint resolution with respect to the extension of controls specified in such report shall be introduced (by request) in the House of Representatives by the chairman of the Committee on International Relations, for the chairman and the ranking minority member of the Committee, or by Members of the House designated by the chairman and ranking minority member; and shall be introduced (by request) in the Senate by the majority leader of the Senate, for the majority leader and the minority leader of the Senate, or by Members of the Senate designated by the majority leader and the minority leader of the Senate. If either House of Congress is not in session on the day on which such a report is submitted, the joint resolution shall be introduced in that House, as provided for in the preceding sentence, on the first day thereafter on which that House is in session. (C) Discharge: If the Committee of either House to which a joint resolution has been referred has not reported the joint resolution by the end of 30 calendar days after its referral, the committee shall be discharged from further consideration of the joint resolution or of any other joint resolution introduced with respect to the same matter. (D) Consideration: A joint resolution under this paragraph shall be considered in the Senate in accordance with the provisions of section 601(b)(4) of the International Security Assistance and Arms Export Control Act of 1976. For the purpose of expediting the consideration and passage of joint resolutions reported or discharged under this paragraph, it shall be in order for the Committee on Rules of the House of Representatives to present for consideration a resolution of the House of Representatives providing procedures for the immediate consideration of a joint resolution under this paragraph which may be similar, if applicable, to the procedures set forth in section 601(b)(4) of the International Security Assistance and Arms Export Control Act of 1976. (E) Duplicative resolutions: In the case of a joint resolution described in subparagraph (A), if, before the passage by one House of a joint resolution of that House, that House receives a resolution with respect to the same matter from the other House, then-- (i) the procedure in that House shall be the same as if no joint resolution had been received from the other House; and (ii) the vote on final passage shall be on the joint resolution of the other House. (4) Further extensions of controls: If, upon the expiration of the emergency controls extended under this subsection, the President determines that a further extension of emergency controls for an additional period of time of not more than 1 year is necessary, paragraphs (1) through (3) shall apply to such further extension. (5) Calculation of time periods: For purposes of calculating calendar days under this subsection, there shall be excluded the days on which either House of Congress is not in session because of an adjournment of more than 3 days to a day certain or because of an adjournment of the Congress sine die. (h) Effect on Other Authority: (1) Embargo authority: Nothing in this section shall be construed to limit the authority of the President to impose an embargo described in subsection (f)(1) on exports to, and imports from, a specific country under the International Emergency Economic Powers Act, the Trading with the Enemy Act, or other provision of law (other than this title). In any case in which the President exercises any such authority to impose an embargo, the requirements of this section shall not apply for so long as such embargo is in effect. (2) Effect on existing embargoes: (A) Nothing in this section affects the authorities conferred upon the President by section 5(b) of the Trading with the Enemy Act, which were being exercised with respect to a country on July 1, 1977, as a result of a national emergency declared by the President before that date, and are being exercised on the date of the enactment of this Act. (B) Nothing in this section affects the authorities conferred upon the President by the International Economic Powers Act or other provision of law (other than the Export Administration Act of 1979), which were being exercised with respect to a country before the date of the enactment of this Act as a result of a national emergency declared by the President before that date, and are being exercised with respect to such country on such date of enactment. (i) Countries Supporting International Terrorism: (1) Prohibition on exports: (A) No export or reexport of commodities or technology described in subparagraph (B) may be made to any country the government of which the Secretary of State has determined has repeatedly provided support for acts of international terrorism. (B) The commodities or technology referred to in subparagraph (A) are-- (i) any commodities or technology the export of which is controlled under this title pursuant to the Missile Technology Control Regime or the Australia Group, or controlled under this title pursuant to section 309(c) of the Nuclear Non-Proliferation Act of 1978, (ii) any commodities or technology described in section 105(a)(1)(B) the export of which is controlled under section 105, and (iii) any commodities or technology the export of which could make a significant contribution to the military potential of a country described in subparagraph (A), including its military logistics capability, or could enhance the ability of such country to support acts of international terrorism, other than commodities or technology that the President determines will be used only for humanitarian purposes. A validated license shall be required for the export under this paragraph of any such commodities or technology that will be used only for humanitarian purposes. (C) Paragraphs (3)(A) and (4) of subsection (a) shall not apply to exports prohibited or restricted under this subsection. (D)(i) The Secretary shall review the list of items described in subparagraph (B)(iii) at least annually. At the conclusion of the review, the Secretary shall justify the inclusion of each item on the list, remove items from the list, change the specifications of items on the list, or add items to the list, in order to ensure that the items on the list meet the requirements of subparagraph (B)(iii). (ii) The procedures set forth in subparagraphs (B), (C), and (E) of section 105(j) shall apply to reviews under clause (i) of the list of items described in subparagraph (B)(iii) to the same extent as such subparagraphs apply to reviews of the security control list under section 105(j). (2) Notification of congress of licenses issued: 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 validated license under this title for exports to a country the government of which the Secretary of State has determined has repeatedly provided support for acts of international terrorism. (3) Publication of determinations: Each determination of the Secretary of State under paragraph (1)(A), and each determination under section 6(j)(1)(A) of the Export Administration Act of 1979 in effect at the time this title takes effect, shall be published in the Federal Register. (4) Rescission of determinations: A determination made by the Secretary of State under paragraph (1)(A) may not be rescinded unless the President submits to the Speaker of the House of Representatives and the chairman of the Committee on Banking, Housing, and Urban Affairs and the chairman of the Committee on Foreign Relations of the Senate-- (A) before the proposed rescission would take effect, a report certifying that-- (i) there has been a fundamental change in the leadership and policies of the government of the country concerned; (ii) that government is not supporting acts of international terrorism; and (iii) that government has provided assurances that it will not support acts of international terrorism in the future; or (B) at least 45 days before the proposed rescission would take effect, a report justifying the rescission and certifying that-- (i) the government concerned has not provided any support for international terrorism during the preceding 6-month period; and (ii) the government concerned has provided assurances that it will not support acts of international terrorism in the future. (5) Waiver of prohibitions: The President may waive the prohibitions contained in paragraph (1)(A) with respect to a specific transaction if-- (A) the President determines that the transaction is essential to the national security interests of the United States; and (B) not less than 30 days prior to the proposed transaction, the President-- (i) consults with the Committee on International Relations of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate regarding the proposed transaction; and (ii) submits to the Speaker of the House of Representatives and the chairman of the Committee on Banking, Housing, and Urban Affairs of the Senate a report containing-- (I) the name of any country involved in the proposed transaction, the identity of any recipient of the items to be provided pursuant to the proposed transaction, and the anticipated use of those items; (II) a description of the items involved in the proposed transaction (including their market value) and the actual sale price at each step in the transaction; (III) the reasons why the proposed transaction is essential to the national security interests of the United States and the justification for the proposed transaction; (IV) the date on which the proposed transaction is expected to occur; and (V) the name of every United States Government department, agency, or other entity involved in the proposed transaction, and every foreign government involved in the proposed transaction. To the extent possible, the information specified in clause (ii) of subparagraph (B) shall be provided in unclassified form, with any classified information provided in an addendum to the report. (6) Multilateral regimes: The Secretary of State shall propose to COCOM, to the Australia Group, to the countries participating in the Missile Technology Control Regime, and to the Nuclear Suppliers Group, that each such group adopt those controls that are imposed by this subsection on exports of commodities or technology subject to control by such group. The Secretary of State shall continue to make such proposals until such export controls are so adopted. (7) Effect on other laws: The provisions of this subsection do not affect any other provision of law to the extent such other provision imposes greater restrictions on exports to any country the government of which the Secretary of State has determined has repeatedly provided support for acts of international terrorism than are imposed under this subsection. (j) Crime Control Instruments: (1) Validated license required: Crime control and detection instruments and equipment shall be approved for export by the Secretary only pursuant to a validated export license. Paragraphs (3)(A) and (4) of subsection (a) shall not apply to the export controls imposed by this subsection. (2) Consultation with secretary of state: (A) Items on control list: Any determination of the Secretary of what commodities or technology shall be included on the control index as a result of the export restrictions imposed by this subsection shall be made after consultation with the Secretary of State. (B) Action on license application: Any determination of the Secretary to approve or deny an export license application to export crime control or detection instruments or equipment shall be made after consultation with the Secretary of State. (3) Dispute resolution: If the Secretary of State does not agree with the Secretary with respect to any determination under paragraph (2), the Secretary of State shall refer the matter to the President for resolution. (4) Exceptions: The provisions of this subsection shall not apply with respect to exports to countries which are members of the North Atlantic Treaty Organization or to Japan, Australia, or New Zealand, or to such other countries as the President shall designate consistent with the purposes of this subsection and section 502B of the Foreign Assistance Act of 1961. (k) Spare Parts: At the same time as the President imposes or expands export controls under this section, the President shall determine whether such export controls will apply to replacement parts or parts in commodities subject to such export controls. SEC. 107. SHORT SUPPLY CONTROLS. (a) Authority: (1) In general: In order to carry out the policy set forth in section 103(4), the President may prohibit or curtail the export of any commodities subject to the jurisdiction of the United States or exported by any person subject to the jurisdiction of the United States. In curtailing exports to carry out the policy set forth in section 103(4), the President shall allocate a portion of export licenses on the basis of factors other than a prior history of exportation. Such factors shall include the extent to which a country engages in equitable trade practices with respect to United States commodities and treats the United States equitably in times of short supply. (2) Public participation: Upon imposing quantitative restrictions on exports of any commodities to carry out the policy set forth in section 103(4), the Secretary shall include in a notice published in the Federal Register with respect to such restrictions an invitation to all interested parties to submit written comments within 15 days after the date of publication on the impact of such restrictions and the method of licensing used to implement them. (3) License fees: In imposing export controls under this section, the President's authority shall include, but not be limited to, the imposition of export license fees. (b) Monitoring: (1) In general: In order to carry out the policy set forth in section 103(4), the Secretary shall monitor exports, and contracts for exports, of any commodity when the volume of such exports in relation to domestic supply contributes, or may contribute, to an increase in domestic prices or a domestic shortage, and such price increase or shortage has, or may have, a serious adverse impact on the economy or any sector thereof. Any such monitoring shall commence at a time adequate to assure that the monitoring will result in a data base sufficient to enable policies to be developed, in accordance with section 103(4), to mitigate a short supply situation or serious inflationary price rise or, if export controls are needed, to permit imposition of such controls in a timely manner. Information which the Secretary requires to be furnished in effecting such monitoring shall be confidential, except as provided in paragraph (2). (2) Reports on monitoring: The results of monitoring under paragraph (1) shall, to the extent practicable, be aggregated and included in weekly reports setting forth, with respect to each item monitored, actual and anticipated exports, the destination by country, and the domestic and worldwide price, supply, and demand. Such reports may be made monthly if the Secretary determines that there is insufficient information to justify weekly reports. (3) Consultation with secretary of energy: The Secretary shall consult with the Secretary of Energy to determine whether monitoring or export controls under this section are warranted with respect to exports of facilities, machinery, or equipment normally and principally used, or intended to be used, in the production, conversion, or transportation of fuels and energy (except nuclear energy), including, but not limited to-- (A) drilling rigs, platforms, and equipment; (B) petroleum refineries, and natural gas processing, liquefaction, and gasification plants; (C) facilities for production of synthetic natural gas or synthetic crude oil; (D) oil and gas pipelines, pumping stations, and associated equipment; and (E) vessels for transporting oil, gas, coal, and other fuels. (c) Petitions for Monitoring or Controls of Metallic Materials: (1) In general: (A) Any entity, including a trade association, firm, or certified or recognized union or group of workers, that is representative of an industry or a substantial segment of an industry that processes metallic materials capable of being recycled may transmit a written petition to the Secretary requesting the monitoring of exports or the imposition of export controls, or both, with respect to any such material, in order to carry out the policy set forth in section 103(4). (B) Each petition shall be in such form as the Secretary shall prescribe and shall contain information in support of the action requested. The petition shall include any information reasonably available to the petitioner indicating that each of the criteria set forth in paragraph (3)(A) is satisfied. (2) Publication of notice: Within 15 days after receipt of any petition described in paragraph (1), the Secretary shall publish a notice in the Federal Register. The notice shall-- (A) include the name of the material that is the subject to the petition; (B) include the schedule B number of the material as set forth in the Statistical Classification of Domestic and Foreign Commodities Exported from the United States; (C) indicate whether the petition is requesting that controls or monitoring, or both, be imposed with respect to the exportation of such material; and (D) provide that interested persons shall have a period of 30 days beginning on the date on which the notice is published to submit to the Secretary written data, views, or arguments, with or without opportunity for oral presentation, with respect to the matter involved. At the request of the petitioner or any other entity described in paragraph (1)(A) with respect to the material which is the subject of the petition, or at the request of any entity representative of producers or exporters of such material, the Secretary shall conduct public hearings with respect to the subject of the petition, in which case the 30-day period may be extended to 45 days. (3) Determination of monitoring or controls: (A) Within 45 days after the end of the 30- or 45-day period described in paragraph (2), as the case may be, the Secretary shall determine whether to impose monitoring or controls, or both, on the export of the material that is the subject of the petition in order to carry out the policy set forth in section 103(4). In making such determination, the Secretary shall determine whether-- (i) there has been a significant increase, in relation to a specific period of time, in exports of such material in relation to domestic supply and demand; (ii) there has been a significant increase in domestic price of such material or a domestic shortage of such material relative to demand; (iii) exports of such material are as important as any other cause of a domestic price increase or shortage relative to demand found under clause (ii); (iv) a domestic price increase or shortage relative to demand found under clause (ii) has significantly adversely affected or may significantly adversely affect the national economy or any sector thereof, including a domestic industry; and (v) monitoring or controls, or both, are necessary in order to carry out the policy set forth in section 103(4). (B) The Secretary shall publish in the Federal Register a detailed statement of the reasons for the Secretary's determination under subparagraph (A) of whether to impose monitoring or controls, or both, including the findings of fact in support of that determination. (4) Publication of regulations: Within 15 days after making a determination under paragraph (3) to impose monitoring or controls on the export of a material, the Secretary shall publish in the Federal Register proposed regulations with respect to such monitoring or controls. Within 30 days after the publication of such proposed regulations, and after considering any public comments on the proposed regulations, the Secretary shall publish and implement final regulations with respect to such monitoring or controls. (5) Consolidation of petitions: For purposes of publishing notices in the Federal Register and scheduling public hearings pursuant to this subsection, the Secretary may consolidate petitions, and responses to such petitions, which involve the same or related materials. (6) Subsequent petitions on same material: If a petition with respect to a particular material or group of materials has been considered in accordance with all the procedures described in this subsection, the Secretary may determine, in the absence of significantly changed circumstances, that any other petition with respect to the same material or group of materials which is filed within 6 months after the consideration of the prior petition has been completed does not merit complete consideration under this subsection. (7) Precedence of procedures over other reviews: The procedures and time limits set forth in this subsection with respect to a petition filed under this subsection shall take precedence over any review undertaken at the initiative of the Secretary with respect to the same subject as that of the petition. (8) Temporary controls: The Secretary may impose monitoring or controls, on a temporary basis, on the export of a metallic material after a petition is filed under paragraph (1)(A) with respect to that material but before the Secretary makes a determination under paragraph (3) with respect to that material only if-- (A) the failure to take such temporary actions would result in irreparable harm to the entity filing the petition, or to the national economy or segment thereof, including a domestic industry, and (B) the Secretary considers such action to be necessary to carry out the policy set forth in section 103(4). (9) Other authority not affected: The authority under this subsection shall not be construed to affect the authority of the Secretary under any other provision of this title, except that if the Secretary determines, on the Secretary's own initiative, to impose monitoring or controls, or both, on the export of metallic materials capable of being recycled, under the authority of this section, the Secretary shall publish the reasons for such action in accordance with paragraph (3)(A) and (B). (10) Submission and consideration of additional information: Nothing contained in this subsection shall be construed to preclude submission on a confidential basis to the Secretary of information relevant to a decision to impose or remove monitoring or controls under the authority of this title, or to preclude consideration of such information by the Secretary in reaching decisions required under this subsection. The provisions of this paragraph shall not be construed to affect the applicability of section 552(b) of title 5, United States Code. (d) Domestically Produced Crude Oil: (1) Prohibition on exports: Notwithstanding any other provision of this title and notwithstanding subsection (u) of section 28 of the Mineral Leasing Act of 1920 (30 U.S.C. 185), no domestically produced crude oil transported by pipeline over right-of-way granted pursuant to section 203 of the Trans-Alaska Pipeline Authorization Act (43 U.S.C. 1652) may, subject to paragraph (2), be exported from the United States, except any such crude oil which-- (A) is exported to an adjacent foreign country to be refined and consumed therein in an exchange that-- (i) is for the same quantity of crude oil being exported from that country to the United States; and (ii) results through convenience or increased efficiency of transportation in lower prices for consumers of petroleum products in the United States as described in paragraph (2)(A)(ii); (B) is temporarily exported for convenience or increased efficiency of transportation across parts of an adjacent foreign country and reenters the United States; or (C) is transported to Canada, to be consumed therein, in amounts not to exceed an annual average of 50,000 barrels per day, in addition to exports under subparagraphs (A) and (B), except that any ocean transportation of such oil shall be by vessels documented under section 12106 of title 46, United States Code. (2) Exceptions: Crude oil subject to the prohibition contained in paragraph (1) may be exported only if-- (A) the President so recommends to the Congress after making and publishing express findings that exports of such crude oil, including exchanges-- (i) will not diminish the total quantity or quality of petroleum refined within, stored within, or legally committed to be transported to and sold within the United States; (ii) will, within 3 months following the initiation of such exports or exchanges, result in-- (I) acquisition costs to the refiners that purchase the imported crude oil being lower than the acquisition costs such refiners would have to pay for the domestically produced oil in the absence of such an export or exchange, and (II) not less than 75 percent of such savings in costs being reflected in wholesale and retail prices of products refined from such imported crude oil; (iii) will be made only pursuant to contracts which may be terminated if the crude oil supplies of the United States are interrupted, threatene