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U.S. Export Administration Regulations

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U.S. Export Administration Regulations Powered By Docstoc
					   Export
Administration
 Regulations
             2013




 U.S. Department of Commerce
Bureau of Industry and Security
Table of Contents                                                                                             i

                                            Table of Contents
Alpha/Numeric Index to the Export Administration Regulations

Legal Authority for the Export Administration Regulations

Part 730      General Information
     730.1        What these regulations cover
     730.2        Statutory authority
     730.3        Dual use exports
     730.4        Other control agencies and departments
     730.5        Coverage of more than exports
     730.6        Control purposes
     730.7        License requirements and exceptions
     730.8        How to proceed and where to get help
     730.9        Organization of the Bureau of Industry and Security
     730.10       Advisory information
     Supplement No. 1 to Part 730; Information Collection Requirements Under the Paperwork Reduction Act: OMB
                                   Control Numbers
     Supplement No. 2 to Part 730; Technical Advisory Committees
     Supplement No. 3 to Part 730; Other U.S. Government Departments and Agencies with Export Control
                                   Responsibilities

 Part 732      Steps For Using the EAR
      732.1        Steps overview
      732.2        Steps regarding scope of the EAR
      732.3        Steps regarding the ten general prohibitions
      732.4        Steps regarding License Exceptions
      732.5        Steps regarding Shipper’s Export Declaration or Automated Export System Record, Destination
                   Control Statements, and Recordkeeping
      732.6        Steps for other requirements
      Supplement No. 1 to Part 732; Decision Tree
      Supplement No. 2 to Part 732; Subject to the EAR?
      Supplement No. 3 to Part 732; BIS’s “Know Your Customer” Guidance and Red Flags

 Part 734      Scope of the Export Administration Regulations
      734.1        Introduction
      734.2        Important EAR terms and principles
      734.3        Items subject to the EAR
      734.4        De minimis U.S. content
      734.5        Activities of U.S. and foreign persons subject to the EAR
      734.6        Assistance available from BIS for determining licensing and other requirements
      734.7        Published information and software
      734.8        Information resulting from fundamental research
      734.9        Educational information
      734.10       Patent applications
      734.11       Government-sponsored research covered by contract controls
      734.12       Effect on foreign laws and regulations
      Supplement No. 1 to Part 734; Questions and Answers - Technology and Software Subject to the EAR
      Supplement No. 2 to Part 734; Guidelines for De Minimis Rules



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Part 736      General Prohibitions
     736.1        Introduction
     736.2        General prohibitions and determination of applicability
     Supplement No. 1 to Part 736; General Orders
     Supplement No. 2 to Part 736; Administrative Orders

 Part 738      Commerce Control List Overview and the Country Chart
      738.1        Introduction
      738.2        Commerce Control List (CCL) structure
      738.3        Commerce Country Chart structure
      738.4        Determining whether a license is required
      Supplement No. 1 to Part 738; Commerce Country Chart

 Part 740      License Exceptions
      740.1        Introduction
      740.2        Restrictions on all License Exceptions
      740.3        Shipments of limited value (LVS)
      740.4        Shipments to Country Group B countries (GBS)
      740.5        Civil end-users (CIV)
      740.6        Technology and software under restriction (TSR)
      740.7        Computers (APP)
      740.8        [RESERVED]
      740.9        Temporary imports, exports, and reexports (TMP)
      740.10       Servicing and replacement of parts and equipment (RPL)
      740.11       Governments, international organizations, and international inspections under the Chemical
                   Weapons Convention (GOV)
      740.12       Gift parcels and humanitarian donations (GFT)
      740.13       Technology and software - unrestricted (TSU)
      740.14       Baggage (BAG)
      740.15       Aircraft and vessels (AVS)
      740.16       Additional permissive reexports (APR)
      740.17       Encryption commodities, software, and technology (ENC)
      740.18       Agricultural commodities (AGR)
      740.19       Consumer Communications Devices (CCD)
      740.20       License Exception Strategic Trade Authorization (STA).
      Supplement No. 1 to Section 740.11; Additional restrictions on use of License Exception GOV
      Supplement No. 1 to Part 740; Country Groups
      Supplement No. 2 to Part 740; Items that may be Donated to Meet Basic Human Needs Under the Humanitarian
                                    License Exception
      Supplement No. 3 to Part 740; License Exception ENC Favorable Treatment Countries

 Part 742           Control Policy – CCL Based Controls
      742.1            Introduction
      742.2            Proliferation of chemical and biological weapons
      742.3            Nuclear nonproliferation
      742.4            National security
      742.5            Missile technology
      742.6            Regional stability
      742.7            Crime control
      742.8            Anti-Terrorism: Iran
      742.9            Anti-Terrorism: Syria

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      742.10       Anti-Terrorism: Sudan
      742.11       Specially designed implements of torture, thumbscrews, and thumbcuffs; and parts and
                   accessories, n.e.s.
      742.12       [RESERVED]
      742.13       Communications intercepting devices
      742.14       Significant items: Hot section technology for the development, production or overhaul of
                   commercial aircraft engines, components, and systems
      742.15       Encryption items
      742.16       [RESERVED]
      742.17       Exports of firearms to OAS member countries
      742.18       Chemical Weapons Convention (CWC or Convention)
      742.19       Anti-terrorism: North Korea
      Supplement No. 1 to Part 742; Nonproliferation of Chemical and Biological Weapons
      Supplement No. 2 to Part 742; Anti-terrorism Controls: North Korea, Syria and Sudan Contract Sanctity Dates
                                     and Related Policies
      Supplement No. 3 to Part 742; [RESERVED]
      Supplement No. 4 to Part 742; [RESERVED]
      Supplement No. 5 to Part 742; Encryption Registration
      Supplement No. 6 to Part 742; Technical Questionnaire for Encryption Items
      Supplement No. 7 to Part 742; Description of Major Weapons Systems
      Supplement No. 8 to Part 742; Self-classification Report for Encryption Items

Part 743      Special Reporting
     743.1        Wassenaar Arrangement
     743.2        High performance computers: post shipment verification reporting
     743.3        Thermal imaging camera reporting
     Supplement No. 1 to Part 743; Wassenaar Arrangement Participating States

Part 744            Control Policy: End-user and End-use Based
     744.1             General provisions
     744.2             Restrictions on certain nuclear end-uses
     744.3             Restrictions on certain rocket systems (including ballistic missile systems and space launch
                       vehicles and sounding rockets) and unmanned air vehicles (including cruise missile systems,
                       target drones and reconnaissance drones) end-uses
      744.4            Restrictions on certain chemical and biological weapons end-uses
      744.5            Restrictions on certain maritime nuclear propulsion end-uses
      744.6            Restrictions on certain activities of U.S. persons
      744.7            Restrictions on certain exports to and for the use of certain foreign vessels or aircraft
      744.8            Restrictions on exports and reexports to persons designated pursuant to Executive Order 13382 –
                       Blocking Property of Weapons of Mass Destruction Proliferators and Their Supporters
      744.9            Restrictions on certain exports and reexports of cameras controlled by ECCNs 6A003.b.3,
                       6A003.b.4.b, or 6A003.b.4.c
      744.10           Restrictions on certain entities in Russia
      744.11           License requirements that apply to entities acting contrary to national security or foreign policy
                       interests of the United States
      744.12           Restrictions on exports and reexports to persons designated in or pursuant to Executive Order
                       13224 (Specially Designated Global Terrorist) (SDGT)
      744.13           Restrictions on exports and reexports to persons designated pursuant to Executive Order 12947
                       (Specially Designated Terrorists) (SDT)
      744.14           Restrictions on exports and reexports to designated Foreign Terrorist Organizations (FTOs)
      744.15           [RESERVED]

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       744.16       Procedures for requesting removal or modification of an Entity List Entity
       744.17       Restrictions on certain exports and reexports of general purpose microprocessors for ‘military
                    end-uses’ and to ‘military end-users’
       744.18       Restrictions on exports, reexports, and transfers to persons designated in or pursuant to Executive
                    Order 13315
       744.19       Licensing policy regarding persons sanctioned pursuant to specified statutes
       744.20       License requirements that apply to certain sanctioned entities
       744.21       Restrictions on certain military end-uses in the People's Republic of China (PRC).
       744.22       Restrictions on exports, reexports and transfers to persons whose property
                    and interests in property are blocked pursuant to Executive Orders
                    13310, 13448 or 13464
       Supplement No. 1 to Part 744; Military End-use Examples for §744.17
       Supplement No. 2 to Part 744; List of Items Subject to the Military End-use License Requirement of §744.21
       Supplement No. 3 to Part 744; Countries Not Subject to Certain Nuclear End-use Restrictions in §744.2(a)
       Supplement No. 4 to Part 744; Entity List
       Supplement No. 5 to Part 744; Procedures for End-User Review Committee Entity List Decisions

Part 745        Chemical Weapons Convention Requirements
     745.1          Advance notification and annual report of all exports of Schedule 1 chemicals to other States
                    Parties
       745.2        End-Use Certificate reporting requirements under the Chemical Weapons Convention
       Supplement No. 1 to Part 745; Schedules of Chemicals
       Supplement No. 2 to Part 745; States Parties to the Convention on the Prohibition of the Development,
                                     Production, Stockpiling, and Use of Chemical Weapons and on Their Destruction
       Supplement No. 3 to Part 745; Foreign Authorized Agencies Responsible for Issuing End-Use Certificates
                                     Pursuant to §745.2

 Part 746      Embargoes and Other Special Controls
      746.1        Introduction
      746.2        Cuba
      746.3        Iraq
      746.4        North Korea
      746.5        [RESERVED]
      746.6        [RESERVED]
      746.7        Iran
      746.8        [RESERVED]
      746.9        Syria
      Supplement No. 1 to Part 746; Examples of luxury goods
      Supplement No. 2 to Part 746; [RESERVED]
      Supplement No. 3 to Part 746; [RESERVED]

Part    747         Special Iraq Reconstruction License
       747.1            Scope
       747.2            Eligibility requirements
       747.3            Eligible Items
       747.4            Steps you must follow to apply for a SIRL
       747.5            SIRL application review process

 Part 748           Applications (Classification, Advisory, and License) and Documentation
      748.1            General provisions
      748.2            Obtaining forms; mailing addresses

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      748.3        Classification Requests, Advisory Opinions, and Encryption Registrations
      748.4        Basic guidance related to applying for a license
      748.5        Parties to the transaction
      748.6        General instructions for license applications
      748.7        Registering for electronic submission of license applications and related documents
      748.8        Unique license application and submission requirements
      748.9        Support documents for license applications
      748.10       Import Certificates and End-user Statements
      748.11       Statement by Ultimate Consignee and Purchaser
      748.12       Special provisions for support documents
      748.13       Delivery Verification (DV)
      748.14       Import Certificate for firearms destined for Organization of American States member countries
      748.15       Authorization Validated End-user (VEU)
      Supplement No. 1 to Part 748; BIS-748P; BIS-748P-A: Item Appendix, and BIS-748P-B: End-User Appendix;
                                    Multipurpose Application Instructions
      Supplement No. 2 to Part 748; Unique Application and Submission Requirements
      Supplement No. 3 to Part 748; BIS-711, Statement by Ultimate Consignee and Purchaser Instructions
      Supplement No. 4 to Part 748; Authorities Administering Import Certificate/ Delivery Verification (IC/DV) and
                                    End-User Statement Systems in Foreign Countries
      Supplement No. 5 to Part 748; U.S. Import Certificate and Delivery Verification Procedure
      Supplement No. 6 to Part 748; Authorities issuing Import Certificates under the Firearms Convention
                                    [RESERVED]
      Supplement No. 7 to Part 748; Authorization Validated End-user (VEU): List of Validated End-Users,
                                    Respective Eligible Items for export, reexport and transfer, and Eligible
                                    Destinations
      Supplement No. 8 to Part 748; Information Required in Requests for Validated End-User (VEU) Authorization
      Supplement No. 9 to Part 748; End-User Review Committee Procedures

 Part 750           Application Processing, Issuance, and/or Denial
      750.1            Scope
      750.2            Processing of Classification Requests and Advisory Opinions
      750.3            Review of license applications by BIS and other government agencies and departments
      750.4            Procedures for processing license applications
      750.5            [RESERVED]
      750.6            Denial of license applications
      750.7            Issuance of licenses
      750.8            Revocation or suspension of licenses
      750.9            Duplicate licenses
      750.10           Transfer of licenses for exports
      750.11           Shipping tolerances

 Part 752           Special Comprehensive License
      752.1            Scope
      752.2            Eligible activities
      752.3            Eligible items
      752.4            Eligible countries
      752.5            Steps you must follow to apply for an SCL
      752.6            Reexports
      752.7            Direct shipment to customers
      752.8            SCL application review process
      752.9            Action on SCL applications

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      752.10       Changes to the SCL
      752.11       Internal Control Programs
      752.12       Recordkeeping requirements
      752.13       Inspection of records
      752.14       System reviews
      752.15       Export clearance
      752.16       Administrative actions
      752.17       BIS address
      Supplement No. 1 to Part 752; Instructions for Completing Form BIS-748P, “Multipurpose Application”, for
                                    Requests for Special Comprehensive Licenses
      Supplement No. 2 to Part 752; Instructions for Completing Form BIS-748P-A, “Item Annex”
      Supplement No. 3 to Part 752; Instructions for Completing Form BIS-752, “Statement by Consignee in Support
                                    of Special Comprehensive License”
      Supplement No. 4 to Part 752; Instructions for Completing Form BIS-752-A, “Reexport Territories”
      Supplement No. 5 to Part 752; Instructions for Completing Form BIS-748P-B, “End-User Appendix”

 Part754       Short Supply Controls
     754.1         Introduction
     754.2         Crude oil
     754.3         Petroleum products not including crude oil
     754.4         Unprocessed western red cedar
     754.5         Horses for export by sea
     754.6         Registration of U.S. agricultural commodities for exemption from short supply limitations on
                   export
      754.7        Petitions for the imposition of monitoring or controls on recyclable metallic materials; Public
                   hearings
      Supplement No. 1 to Part 754; Petroleum and Petroleum Products
      Supplement No. 2 to Part 754; Unprocessed Western Red Cedar
      Supplement No. 3 to Part 754; Statutory Provisions Dealing with Exports of Crude Oil

 Part 756           Appeals
      756.1            Introduction
      756.2            Appeal from an administrative action

 Part 758           Export Clearance Requirements
      758.1            The Shipper’s Export Declaration (SED) or Automated Export System (AES) record
      758.2            Automated Export System (AES)
      758.3            Responsibilities of parties to the transaction
      758.4            Use of export license
      758.5            Conformity of documents and unloading of items
      758.6            Destination control statement
      758.7            Authority of the Office of Export Enforcement, the Bureau of Industry and Security, Customs
                       offices and Postmasters in clearing shipments
      758.8            Return or unloading of cargo at direction of BIS, the Office of Export Enforcement or Customs
                       Service
      758.9            Other applicable laws and regulations

 Part 760           Restrictive Trade Practices or Boycotts
      760.1             Definitions
      760.2             Prohibitions
      760.3             Exception to prohibitions

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      760.4        Evasion
      760.5        Reporting requirements
      Supplement Nos. 1-16; Interpretations

 Part 762           Recordkeeping
      762.1            Scope
      762.2            Records to be retained
      762.3            Records exempt from recordkeeping requirements
      762.4            Original records required
      762.5            Reproduction of original records
      762.6            Period of retention
      762.7            Producing and inspecting records

 Part 764      Enforcement and Protective Measures
      764.1        Introduction
      764.2        Violations
      764.3        Sanctions
      764.4        Reporting of violations
      764.5        Voluntary self-disclosure
      764.6        Protective administrative measures
      764.7        Activities involving items that may have been illegally exported or reexported to Libya
      764.8        Voluntary self-disclosures for boycott provisions
      Supplement No. 1 to Part 764; Standard Terms of Orders Denying Export Privileges

 Part 766      Administrative Enforcement Proceedings
      766.1        Scope
      766.2        Definitions
      766.3        Institution of administrative enforcement proceedings
      766.4        Representation
      766.5        Filing and service of papers other than charging letter
      766.6        Answer and demand for hearing
      766.7        Default
      766.8        Summary decision
      766.9        Discovery
      766.10       Subpoenas
      766.11       Matter protected against disclosure
      766.12       Prehearing conference
      766.13       Hearings
      766.14       Interlocutory review of rulings
      766.15       Proceeding without a hearing
      766.16       Procedural stipulations; extension of time
      766.17       Decision of the administrative law judge
      766.18       Settlement
      766.19       Reopening
      766.20       Record for decision and availability of documents
      766.21       Appeals
      766.22       Review by Under Secretary
      766.23       Related persons
      766.24       Temporary denials
      766.25       Administrative action denying export privileges
      Supplement No. 1 to part 766; Guidance on Charging and Penalty Determinations in Settlement of Administrative

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                                     Enforcement Cases
      Supplement No. 2 to part 766; Guidance on Charging and Penalty Determinations in Settlement of Administrative
                                     Enforcement Cases Involving Antiboycott Matters

 Part 768      Foreign Availability Determination Procedures and Criteria
      768.1        Introduction
      768.2        Foreign availability described
      768.3        Foreign availability assessment
      768.4        Initiation of an assessment
      768.5        Contents of foreign availability submissions and Technical Advisory Committee certifications
      768.6        Criteria
      768.7        Procedures
      768.8        Eligibility of expedited licensing procedures for non-controlled countries
      768.9        Appeals of negative foreign availability determinations
      768.10       Removal of controls on less sophisticated items
      Supplement No. 1 to Part 768; Evidence of Foreign Availability
      Supplement No. 2 to Part 768; Items Eligible for Expedited Licensing Procedures [RESERVED]

 Part 770           Interpretations
      770.1             Introduction
      770.2             Item interpretations
      770.3             Interpretations related to exports of technology and software to destinations in Country Group D:1

 Part 772           Definitions of Terms
      772.1             Definitions of terms as used in the Export Administration Regulations (EAR)

 Part 774      The Commerce Control List
      774.1        Introduction
      774.2        [RESERVED]
      Supplement No. 1 to Part 774; The Commerce Control List
                   Category 0 - Nuclear Materials, Facilities & Equipment (and Miscellaneous Items)
                   Category 1 - Materials, Chemicals, “Microorganisms”, and Toxins
                   Category 2 - Materials Processing
                   Category 3 - Electronics
                   Category 4 - Computers
                   Category 5 (Part 1) - Telecommunications
                   Category 5 (Part 2) - Information Security
                   Category 6 - Sensors and Lasers
                   Category 7 - Navigation and Avionics
                   Category 8 - Marine
                   Category 9 - Aerospace and Propulsion
      Supplement No. 2 to Part 774; General Technology and Software Notes
      Supplement No. 3 to Part 774; Statements of Understanding
      Supplement No. 4 to Part 774; [RESERVED]
      Supplement No. 5 to Part 774; Items Classified under ECCNs 0A521, 0B521, 0C521, 0D521 and 0E521




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                                      LEGAL AUTHORITY

                     EXPORT ADMINISTRATION REGULATIONS


                                         (As of January 23, 2013)

        This compilation contains statutory material and Executive Orders and other
        Presidential documents relevant to the export controls administered under the
        Export Administration Regulations. This compilation is not intended to replace
        official publications of this material. Information is updated periodically.




                                              prepared by

                                    The Office of the Chief Counsel
                                      for Industry and Security
                                            (202) 482-5301



                                         John T. Masterson, Jr.
                                            Chief Counsel




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                                                Table of Contents

Note: Text in italics is annotative; section numbers for statutory provisions refer to Public Law sections as
found in the Statutes at Large; asterisks denote omitted text.


PART I       Principal Statutory Authority

             1. Export Administration Act of 1979, as amended
                (Pub. L. 96-72, 93 Stat. 503, 50 U.S.C. app. 2401 - 2420) ................................................. 2

             2. International Emergency Economic Powers Act, as amended
                (Pub. L. 95-223, 91 Stat. 1628, 50 U.S.C. 1701 - 1706) ................................................... 68


PART II      Executive Orders and Other Presidential Documents Relevant to Part I Statutory
             Authorities

             1. E.O. 12002 - Administration of the Export Administration Act of 1969, as amended
                (42 FR 35623; 3 CFR, 1977 Comp., p. 133)..................................................................... 74

             2. E.O. 12214 - Administration of the Export Administration Act of 1979
                (45 FR 29783; 3 CFR, 1980 Comp., p. 256)..................................................................... 75

             3. E.O. 12735 - Chemical and Biological Weapons Proliferation
                (55 FR 48587; 3 CFR, 1990 Comp., p. 313)..................................................................... 75

             4. E.O. 12851 - Administration of Proliferation Sanctions, Middle East
                Arms Control, and Related Congressional Reporting Responsibilities
                (58 FR 33181; 3 CFR, 1993 Comp., p. 608)..................................................................... 78

             5. E.O. 12867 - Termination of Emergency Authority for Certain Export Controls
                (58 FR 51747; 3 CFR, 1993 Comp., p. 649)..................................................................... 80

             6. E.O. 12924 - Continuation of Export Control Regulations
                (59 FR 43437; 3 CFR, 1994 Comp., p. 917)..................................................................... 80

             7. Presidential Notice of August 15, 1995 - Continuation of Emergency Regarding
                Export Control Regulations
                (60 FR 42767; 3 CFR, 1995 Comp., p. 501)..................................................................... 81



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             8. E.O. 12938 - Proliferation of Weapons of Mass Destruction, as amended
                (59 FR 59099; 3 CFR, 1994 Comp., p. 950) .................................................................... 82

             9. E.O. 12981 - Administration of Export Controls (License Processing), as amended
                (60 FR 62981; 3 CFR, 1995 Comp., p. 419)..................................................................... 85

             10. E.O. 13026 - Administration of Export Controls on Encryption Products
                 (61 FR 58767; 3 CFR, 1996 Comp., p. 228)..................................................................... 89

             11. Presidential Notice of August 14, 1996 - Continuation of Emergency Regarding
                 Export Control Regulations
                 (61 FR 42527; 3 CFR, 1996 Comp., p. 298)..................................................................... 90

             12. Presidential Notice of August 13, 1997 - Continuation of Emergency Regarding
                 Export Control Regulations
                 (62 FR 43269; 3 CFR, 1997 Comp., p. 306)..................................................................... 91

             13. Presidential Notice of August 13, 1998 - Continuation of Emergency Regarding
                 Export Control Regulations
                 (63 FR 44121; 3 CFR, 1998 Comp., p. 294)..................................................................... 91

             14. Presidential Notice of August 10, 1999 - Continuation of Emergency Regarding
                 Export Control Regulations
                 (64 FR 44101; 3 CFR, 1999 Comp., p. 302)..................................................................... 91

             15. Presidential Notice of August 3, 2000 - Continuation of Emergency Regarding
                 Export Control Regulations
                 (65 FR 48347; 3 CFR, 2000 Comp., p. 397)..................................................................... 92

             16. E.O. 13206 - Termination of Emergency Authority for Certain Export Controls
                 (66 FR 18397; 3 CFR, 2001 Comp., p. 763)..................................................................... 92

             17. E.O. 13222 - Continuation of Export Control Regulations
                 (66 FR 44025; 3 CFR, 2001 Comp., p. 783)..................................................................... 92

             18. Presidential Notice of August 14, 2002 - Continuation of Emergency Regarding
                 Export Control Regulations
                 (67 FR 53721; 3 CFR, 2002 Comp., p. 306)..................................................................... 93

             19. Presidential Notice of August 7, 2003 - Continuation of Emergency Regarding
                 Export Control Regulations
                 (68 FR 47833; 3 CFR, 2003 Comp., p. 328)..................................................................... 94


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             20. Presidential Notice of October 29, 2003 - Continuation of Emergency Regarding
                 Weapons of Mass Destruction
                 (68 FR 62209; 3 CFR, 2003 Comp., p. 347)..................................................................... 94

             21. Presidential Notice of August 6, 2004 - Continuation of Emergency Regarding
                 Export Control Regulations
                 (69 FR 48763, August 10, 2004) ...................................................................................... 94

             22. Presidential Notice of November 4, 2004 - Continuation of Emergency Regarding
                 Weapons of Mass Destruction
                 (69 FR 64637, November 8, 2004) ................................................................................... 95

             23. Presidential Notice of August 2, 2005 - Continuation of Emergency Regarding
                 Export Control Regulations
                 (70 FR 45273, August 5, 2005) ........................................................................................ 95

             24. Presidential Notice of October 25, 2005 - Continuation of Emergency Regarding
                 Weapons of Mass Destruction
                 (70 FR 62027, October 27, 2005) ..................................................................................... 95

             25. Presidential Notice of August 3, 2006 - Continuation of Emergency Regarding
                 Export Control Regulations
                 (71 FR 44551, August 7, 2006) ....................................................................................... 96

             26. Presidential Notice of October 27, 2006 - Continuation of Emergency Regarding
                 Weapons of Mass Destruction
                 (71 FR 64109, October 31, 2006) ..................................................................................... 96

             27. Presidential Notice of August 15, 2007 - Continuation of Emergency Regarding
                 Export Control Regulations
                 (72 FR 46137, August 16, 2007) ...................................................................................... 96

             28. Presidential Notice of November 8, 2007 - Continuation of Emergency Regarding
                 Weapons of Mass Destruction
                 (72 FR 63963, November 13, 2007) ................................................................................. 97

             29. Presidential Notice of July 23, 2008- Continuation of Emergency Regarding
                 Export Control Regulations
                 (73 FR 43603, July 25, 2008) ........................................................................................... 97

             30. Presidential Notice of November 10, 2008 - Continuation of Emergency Regarding
                 Weapons of Mass Destruction
                 (73 FR 67097, November 12, 2008) ................................................................................. 97

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             31. Presidential Notice of August 13, 2009- Continuation of Emergency Regarding
                 Export Control Regulations
                 (74 FR 41325, August 14, 2009) ...................................................................................... 98

             32. Presidential Notice of November 6, 2009 - Continuation of Emergency With Respect to
                 Weapons of Mass Destruction
                 (74 FR 58187, November 10, 2009) ................................................................................. 98

             33. Presidential Notice of August 12, 2010- Continuation of Emergency Regarding
                 Export Control Regulations
                 (75 FR 50681, August 16, 2010) ...................................................................................... 98

             34. Presidential Notice of November 4, 2010 - Continuation of Emergency With Respect to
                 Weapons of Mass Destruction
                 (75 FR 68673, November 8, 2010) ................................................................................... 99

             35. E.O. 13558 – Export Enforcement Coordination Center
                 (75 FR 69573, November 15, 2010) ................................................................................. 99

             36. Presidential Notice of August 12, 2011- Continuation of Emergency Regarding
                 Export Control Regulations
                 (76 FR 50661, August 16, 2011) .................................................................................... 100

             37. Presidential Notice of November 4, 2010 - Continuation of Emergency With Respect to
                 Weapons of Mass Destruction
                 (76 FR 70319, November 10, 2011) ............................................................................... 101

             38. Presidential Notice of August 15, 2012 – Continuation of Emergency Regarding Export
                 Control Regulations
                 (77 FR 56766, September 14, 2012)…………….………………………………...……101

             39. Presidential Notice of November 1, 2012 – Continuation of Emergency With Respect to
                 Weapons of Mass Destruction
                 (77 FR 66513, November 5, 2012)……………………………………………………..101

PART III Other Statutory Provisions Relevant to the Export Administration Regulations

             1. Nuclear Non-Proliferation Act, 309(c)
                (Sec. 309(c) of Pub. L. 95-242, 92 Stat. 141, 42 U.S.C. 2139a) ..................................... 104

             2. "Crude Oil Statutes"


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                   a.     Energy Policy and Conservation Act, 103
                          (Sec. 103 of Pub. L. 94-163, 89 Stat. 877, 42 U.S.C. 6212) ................................... 104

                   b.     Exports of Alaska North Slope Oil
                        (Sec. 201 of Pub. L. 104-58, 109 Stat. 557, 30 U.S.C. 185(s)) .................................. 105

                   c. Mineral Leasing Act of 1920, 28(u)
                      (Sec. 28(u) as amended by Pub. L. 93-153, 30 U.S.C. 185(u)) ................................ 106

                   d. Naval Petroleum Reserves Production Act, 201(11)
                      (Sec. 201(11) of Pub. L. 94-258, 90 Stat. 310, 30 U.S.C. 7430(e)) .......................... 107

                   e. Outer Continental Shelf Lands Act Amend. of 1978, 208
                      (Sec. 208 of Pub. L. 95-372, 92 Stat. 668, 43 U.S.C. 1354) ...................................... 107

             3. Cuban Democracy Act, 1705-1706
                (Secs. 1705-1706 of Pub. L. 102-484, 106 Stat. 2575, 22 U.S.C. 6004-6005) ............. 108

             4. Cuban Liberty and Democratic Solidarity (Libertad) Act of 1996, 102, 109 and 114
                (Secs. 102, 109 and 114 of Pub. L. 104-114, 110 Stat. 785, 22 U.S.C. 6032, 6039, and
                6044) ............................................................................................................................... 110

             5. Export of Horses by Sea
                (Sec. 125 of Pub. L. 99-64, 99 Stat. 156, 46 U.S.C. app. 466c) ..................................... 112

             6. Missile Technology Controls Policy
                (Sec. 1701 of Pub. L. 101-510, 104 Stat. 1738, 50 U.S.C. app. 2402 (note)) ................. 112

             7. "Tiananmen Square Sanctions"
                (Title IX of Pub. L. 101-246, 104 Stat. 83, 22 U.S.C. 2151 (note)) ............................... 113

             8. Iraq Sanctions Act of 1990
                (Secs. 586-586J of Pub. L. 101-513, 104 Stat. 2047, 50 U.S.C. 1701 (note)) ................ 115

             9. Iran-Iraq Arms Non-Proliferation Act
                (Secs. 1601-1608 of Pub. L. 102-484, 106 Stat. 2571, 50 U.S.C. 1701 (note)).............. 120

             10. Sanctions Against Serbia and Montenegro
                 (Sec. 1511 of Pub. L. 103-160, 107 Stat. 1839, 50 U.S.C. 1701 (note)) ........................ 123

             11. Export Controls on High Performance Computers, as amended
                 (Secs. 1211-1215 of Pub. L. 105-85, 111 Stat. 1932, 50 U.S.C. app. 2404 (note)) ........ 124


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             12. Satellite Export Controls
                 (Secs. 1511-1516 of Pub. L. 105-261, 112 Stat. 2173, 22 U.S.C. 2778,
                  repealed by National Defense Authorization Act for Fiscal Year 2013,
                 126 Stat. 1632 and note)…...…………………………………………………….……. 127

             13. Antiterrorism and Effective Death Penalty Act of 1996
                 (Secs. 301 - 303, and 321 of Pub. L. 104-132, 110 Stat. 1214-1254,
                 8 U.S.C. 1189, 18 U.S.C. 2339B, 2339B(note), and 2332d) .......................................... 128

             14. Commerce between United States and Hong Kong and Continued Application
                 of United States Law
                 (Secs. 103, 201 and 202 of Pub. L. 102-383, 106 Stat. 1450,
                 22 U.S.C. 5713, 5721 and 5723)..................................................................................... 130

             15. International Religious Freedom Act of 1998
                 (Secs. and 423 of Pub. L. 105-292, 112 Stat. 2787, 22 U.S.C. 6445 and 6461) ............. 131

             16. Iran, North Korea, and Syria Nonproliferation Act
                 (Secs. 1 - 7 of Pub. L. 106-178, 114 Stat. 38, 50 U.S.C. 1701 (note)) ........................... 132

             17. Trade Sanctions Reform and Export Enhancement Act of 2000, as amended
                 (Sec. 775 and Secs.. 901 - 911 of Pub. L. 106-387, 114 Stat. 1549,
                  22 U.S.C. 7201 - 7209 and note) .................................................................................. 135

             18. Department of Defense Review of Export License Requirements for
                 Certain Biological Pathogens
                 (Sec. 1323 of Pub. L. 104-106, 110 Stat. 480, 50 U.S.C. App. 2404 (note)).................. 137

             19. Waiver Authority of MTCR and EAA Sanctions with Respect to Pakistan
                 (Sec. 2 of Pub. L. 107-57, 115 Stat. 403) ....................................................................... 138

             20. Syria Accountability and Lebanese Sovereignty Restoration Act of 2003
                 (Sec. 5 of Pub. L. 108-175, 117 Stat. 2482, 22 U.S.C. 2151 note) ................................. 138

             21. Emergency Wartime Supplemental Appropriations Act of 2003
                 (Secs. 1503 - 1504 of Pub. L. 108-11, 117 Stat. 579) .................................................... 139

             22. Uniting and Strengthening America by Providing Appropriate Tools Required
                 to Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT ACT)
                 (Sec. 221(b) of Pub. L. 107-56, 115 Stat. 292, 22 U.S.C. 7210) ................................... 140

             23. Energy Policy Act of 2005
                 (Sec. 632 of Pub. L. 109-58, 119 Stat. 789, 42 U.S.C. 2158) ......................................... 141

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             24. Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2011
                 (Secs. 301-305 of Pub. L. 111-195, 124 Stat. 1312, 22 U.S.C. 8541-8544) ................... 141

            25. National Defense Authorization Act for Fiscal Year 2013
                (Secs. 1261-1267 of Pub. L. 112-239, 126 Stat. 1632,
                2013 Enacted H.R. 4310 and note) ………………….............................................……145

PART IV Other Executive Orders and Presidential Documents Relevant to
        Part III Statutory Provisions

             1. E.O. 12058 - Functions Relating to Nuclear Non-Proliferation
                (43 FR 20947; 3 CFR, 1978 Comp., p. 179)................................................................... 151

             2. E.O. 12854 - Implementation of the Cuban Democracy Act
                (58 FR 36587; 3 CFR, 1993 Comp., p. 614)................................................................... 151

             3. Reserved

             4. E.O. 12918 - Prohibiting Certain Transactions with Respect to Rwanda and
                Delegating Authority with Respect to Other United Nations Arms Embargoes
                (59 FR 28205; 3 CFR, 1994 Comp., p. 899)................................................................... 152

             5. Presidential Memorandum of Sept. 27, 1994 - Delegation of Authorities
                Under the Iran-Iraq Arms Non-Proliferation Act of 1992
                (59 FR 50685; 3 CFR, 1994 Comp., p. 1032)................................................................. 153

             6. E.O. 12947 - Prohibiting Transactions with Terrorists Who Threaten to Disrupt
                the Middle East Peace Process, as amended
                (60 FR 5079; 3 CFR, 1995 Comp., p. 319)..................................................................... 154

             7. E.O. 12959 - Prohibiting Certain Transactions with Respect to Iran
                (60 FR 24757; 3 CFR, 1995 Comp., p. 356)................................................................... 155

             8. E.O. 13059 - Prohibiting Certain Transactions with Respect to Iran
                (62 FR 44531; 3 CFR, 1997 Comp., p. 217)................................................................... 157

             9    E.O. 13129 of July 4, 1999 -- Blocking Property and Prohibiting Transactions
                  with the Taliban
                  (64 FR 36759, July 7, 1999; 3 CFR, 1999 Comp., p. 200) ............................................. 159




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             10. Presidential Determination 2001-28 of September 22, 2001 - Waiver of
                 Nuclear-Related Sanctions on India and Pakistan
                 (66 FR 50095, October 2, 2001) ..................................................................................... 161

             11. E.O. 13224 of September 23, 2001 - Blocking Property and Prohibiting
                 Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism
                 (66 FR 49079, September 25, 2001) ............................................................................... 162

             12. E.O. 13338 of May 11, 2004 - Blocking Property of Certain Persons and
                 Prohibiting the Export of Certain Goods to Syria
                 (69 FR 26751, May 13, 2004) ........................................................................................ 164

             13. Presidential Determination No. 2003-23 of May 7, 2003 -
                 Suspending the Iraq Sanctions Act, Making Inapplicable Certain Statutory
                 Provisions Related to Iraq, and Delegating Authorities under the Emergency
                 Wartime Supplemental Appropriations Act, 2003
                 (68 FR 26459, May 16, 2003)) ...................................................................................... 167




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                                       PART I


                            PRINCIPAL STATUTORY AUTHORITY
                      FOR THE EXPORT ADMINISTRATION REGULATIONS




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Part I.1.         Export Administration Act of 1979, as amended1
                                                                                                                                                 Page

                  Statutory Citations ............................................................................................................ 7

                  Section 1                   Short Title........................................................................................... 8

                  Section 2                   Findings .............................................................................................. 8

                  Section 3                   Declaration of Policy ......................................................................... 9

                  Section 4                   General Provisions........................................................................... 10

                                              (a)    Types of Licenses ...................................................................... 10
                                              (b)    Control List ................................................................................ 11
                                              (c)    Foreign Availability ................................................................... 11
                                              (d)    Right of Export .......................................................................... 11
                                              (e)    Delegation of Authority ............................................................. 11
                                              (f)    Notification of Public; Consultation with Business ................... 11
                                              (g)    Fees ............................................................................................ 11

                  Section 5                   National Security Controls ............................................................. 12

                                              (a)    Authority .................................................................................... 12
                                              (b)    Policy Toward Individual Countries .......................................... 13
                                              (c)    Control List ................................................................................ 14
                                              (d)    Militarily Critical Technologies................................................. 15
                                              (e)    Export Licenses ......................................................................... 16
                                              (f)    Foreign Availability ................................................................... 17
                                              (g)    Indexing ..................................................................................... 21
                                              (h)    Technical Advisory Committees ............................................... 22
                                              (i)    Multilateral Export Controls ...................................................... 23
                                              (j)    Commercial Agreements with Certain Countries ...................... 24
                                              (k)    Negotiations with Other Countries ............................................ 24
                                              (l)    Diversion of Controlled Goods or Technology ......................... 24
                                              (m)    Goods Containing Controlled Parts and Components ............... 24
                                              (n)    Security Measures ...................................................................... 24
                                              (o)    Recordkeeping ........................................................................... 25


        1
          The Act expired in August 20, 1994, and was reauthorized by Pub. L. 106-508 (November 13,
2000). During the lapse, a national emergency declared under Executive Order 12924 (August 19, 1994)
and extended by annual Presidential notices, continued in effect the provisions of the Export Administration
Regulations. The Act lapsed again on August 20, 2001 and the President, through Executive Order 13222
of August 17, 2001 (66 Fed. Reg. 44025 (August 22, 2001)), has continued the Regulations in effect under
the International Emergency Economic Powers Act.


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                                    (p) National Security Control Office ............................................... 25
                                    (q) Exclusion for Agricultural Commodities ................................... 25

                  Section 6         Foreign Policy Controls................................................................... 25

                                    (a)   Authority .................................................................................... 25
                                    (b)   Criteria ....................................................................................... 26
                                    (c)   Consultation with Industry ........................................................ 26
                                    (d)   Consultation with Other Countries ............................................ 26
                                    (e)   Alternative Means ...................................................................... 26
                                    (f)   Consultation with Congress ....................................................... 26
                                    (g)   Exclusion for Medicine and Medical Supplies and for
                                          Certain Food Exports ................................................................. 27
                                    (h)   Foreign Availability ................................................................... 28
                                    (i)   International Obligations ........................................................... 28
                                    (j)   Countries Supporting International Terrorism ........................... 28
                                    (k)   Negotiations with Other Countries ............................................ 29
                                    (l)   Missile Technology ................................................................... 30
                                    (m)   Chemical and Biological Weapons ............................................ 31
                                    (n)   Crime Control Instruments ........................................................ 31
                                    (o)   Control List ................................................................................ 32
                                    (p)   Effect on Existing Contracts and Licenses ................................ 32
                                    (q)   Extension of Certain Controls ................................................... 32
                                    (r)   Expanded Authority to Impose Controls ................................... 32
                                    (s)   Spare Parts ................................................................................. 33

                  Section 7         Short Supply Controls ..................................................................... 33

                                    (a)   Authority .................................................................................... 33
                                    (b)   Monitoring ................................................................................. 33
                                    (c)   Petitions for Monitoring or Controls ......................................... 34
                                    (d)   Domestically Produced Crude Oil ............................................. 35
                                    (e)   Refined Petroleum Products ...................................................... 36
                                    (f)   Certain Petroleum Products ....................................................... 37
                                    (g)   Agricultural Commodities ......................................................... 37
                                    (h)   Barter Agreements ..................................................................... 38
                                    (i)   Unprocessed Red Cedar ............................................................. 39
                                    (j)   Effect of Controls on Existing Contracts ................................... 39
                                    (k)   Oil Exports for Use by United States Military Facilities ........... 40

                  Section 8         Foreign Boycotts .............................................................................. 40

                                    (a) Prohibitions and Exceptions ...................................................... 40
                                    (b) Foreign Policy Controls ............................................................. 41
                                    (c) Preemption ................................................................................. 42

                  Section 9         Procedures for Hardship Relief

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                                    from Export Controls ...................................................................... 42

                                    (a) Filing of Petitions ...................................................................... 42
                                    (b) Decision of Secretary ................................................................. 42
                                    (c) Factors to be Considered ........................................................... 42

                  Section 10        Procedures for Processing Export
                                    License Applications; Other
                                    Inquiries............................................................................................ 42

                                    (a)    Primary Responsibility of Secretary .......................................... 42
                                    (b)    Initial Screening ......................................................................... 43
                                    (c)    Action on Certain Applications ................................................. 43
                                    (d)    Referral to Other Departments and Agencies ............................ 43
                                    (e)    Action by Other Department and Agencies ............................... 43
                                    (f)    Action by Secretary ................................................................... 44
                                    (g)    Special Procedures for Secretary of Defense ............................. 45
                                    (h)    Multilateral Controls .................................................................. 45
                                    (i)    Records ...................................................................................... 46
                                    (j)    Appeal and Court Actions ......................................................... 46
                                    (k)    Changes in Requirements for Applications ............................... 46
                                    (l)    Other Inquiries ........................................................................... 46
                                    (m)    Small Business Assistance ......................................................... 47
                                    (n)    Reports on License Applications ............................................... 47
                                    (o)    Exports to Members of Coordinating Committee...................... 48

                  Section 11        Violations .......................................................................................... 48

                                    (a)    In General .................................................................................. 48
                                    (b)    Willful Violations ...................................................................... 49
                                    (c)    Civil Penalties; Administrative Sanctions ................................. 49
                                    (d)    Payment of Penalties.................................................................. 50
                                    (e)    Refunds ...................................................................................... 50
                                    (f)    Actions for Recovery of Penalties ............................................. 50
                                    (g)    Forfeiture of Property Interest and Proceeds ............................. 50
                                    (h)    Prior Convictions ....................................................................... 50
                                    (i)    Other Authorities ....................................................................... 51

                  Section 11A       Multilateral Export Control
                                    Violations .......................................................................................... 51

                                    (a)    Determination by the President.................................................. 51
                                    (b)    Sanctions .................................................................................... 51
                                    (c)    Exceptions ................................................................................. 51
                                    (d)    Exclusion ................................................................................... 52
                                    (e)    Definitions ................................................................................. 52
                                    (f)    Subsequent Modifications of Sanctions ..................................... 52

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                                    (g) Report to Congress .................................................................... 53
                                    (h) Discretionary Imposition of Sanctions ...................................... 53
                                    (i) Compensation for Diversion of Militarily
                                        Critical Technologies to Controlled Countries .......................... 53
                                    (j) Other Actions by the President .................................................. 53
                                    (k) Damages for Certain Violations ................................................ 53
                                    (l) Definitions ................................................................................. 53

                  Section 11B       Missile Proliferation Control
                                    Violation ........................................................................................... 54

                                    (a) Violations by United States Persons .......................................... 54
                                    (b) Transfers of Missile Equipment or Technology
                                         by Foreign Persons ................................................................... 54
                                    (c) Definitions ................................................................................. 56

                  Section 11C       Chemical and Biological Weapons
                                    Proliferation Sanctions .................................................................... 57

                                    (a) Imposition of Sanctions ............................................................. 57
                                    (b) Consultations with and Actions by Foreign
                                        Government of Jurisdiction ....................................................... 57
                                    (c) Sanctions .................................................................................... 58
                                    (d) Termination of Sanctions ........................................................... 58
                                    (e) Waiver ....................................................................................... 58
                                    (f) Definition of Foreign Person ..................................................... 59

                  Section 12        Enforcement ..................................................................................... 59

                                    (a)    General Authority ...................................................................... 59
                                    (b)    Immunity ................................................................................... 60
                                    (c)    Confidentiality ........................................................................... 60
                                    (d)    Reporting Requirements ............................................................ 61
                                    (e)    Simplification of Regulations .................................................... 61

                  Section 13        Administrative Procedure and
                                    Judicial Review ................................................................................ 62

                                    (a)    Exemption .................................................................................. 62
                                    (b)    Public Participation .................................................................... 62
                                    (c)    Procedures Relating to Civil Penalties and Sanctions ............... 62
                                    (d)    Imposition of Temporary Denial Orders ................................... 62
                                    (e)    Appeals from License Denials ................................................... 63


                  Section 14        Annual Report ................................................................................. 63



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                                    (a) Contents ..................................................................................... 63
                                    (b) Report on Certain Export Controls ............................................ 64
                                    (c) Report on Negotiations .............................................................. 64
                                    (d) Report on Exports to Controlled Countries ............................... 64
                                    (e) Report on Domestic Economic Impact of Exports to
                                        Controlled Countries .................................................................. 64
                                    (f) Annual Report of the President.................................................. 65

                  Section 15        Administrative and Regulatory
                                    Authority .......................................................................................... 65

                                    (a) Under Secretary of Commerce .................................................. 65
                                    (b) Issuance of Regulations ............................................................. 65
                                    (c) Amendments to Regulations ...................................................... 65

                  Section 16        Definitions ........................................................................................ 65

                  Section 17        Effects on Other Acts ...................................................................... 66

                                    (a)    In General .................................................................................. 66
                                    (b)    Coordination of Controls ........................................................... 66
                                    (c)    Civil Aircraft Equipment ........................................................... 66
                                    (d)    Nonproliferation Controls .......................................................... 66
                                    (e)    Termination of Other Authority................................................. 66
                                    (f)    Agricultural Act of 1970 ............................................................ 66

                  Section 18        Authorization of Appropriations ................................................... 67

                                    (a) Requirement of Authorizing Legislation ................................... 67
                                    (b) Authorization ............................................................................. 67

                  Section 19        Effective Date ................................................................................... 67

                  Section 20        Termination Date............................................................................. 67

                  Section 21        Savings Provision ............................................................................. 67

                                    (a) In General .................................................................................. 67
                                    (b) Administrative Proceedings ....................................................... 67




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                                               ########

          STATUTORY CITATIONS                              Biological Weapons), Pub. L. 102-182

Export Administration Act of 1979, Pub. L. 96-72, 93      Export Administration Act        of    1979
Stat. 503, as amended by:                                  (extension), Pub. L. 103-10

       International Security and Development Act        Act for Reform in Emerging New
        of 1980 (Section 111), Pub. L. 96-533              Democracies and Support and Help for
                                                           Improved Partnership with Russia, Ukraine,
       Export Administration Amendments Act of            and other New Independent States, Pub. L.
        1981, Pub. L. 97-145                               103-199

       Export Administration Act        of   1979,       Foreign Relations Authorization Act, Fiscal
        Extension, Pub. L. 98-108                          Years 1994 and 1995, Pub. L. 103-236

       Export Administration Act        of   1979,       Export Administration Act        of    1979
        Extension, Pub. L. 98-207                          (extension), Pub. L. 103-277

       Export Administration Act        of   1979,       Act to Provide References in Law to
        Extension, Pub. L. 98-222                          Committees and Officers of the House of
                                                           Representatives, Pub. L. 104-14
       Export Administration Amendments Act of
        1985, Pub. L. 99-64                               General Accounting Office Act of 1996
                                                           (Section 128), Pub. L. 104-316
       Omnibus      Diplomatic     Security    and
        Anti-Terrorism Act of 1986, Pub. L. 99-399        Omnibus Consolidated and Emergency
                                                           Supplemental Appropriations Act of 1999,
       Tax Reform Act of 1986 (Section 2), Pub. L.        Pub. L. 105-277
        99-514
                                                          Pub. L. 106-508, November 13, 2000.
       Export Administration Act        of   1979,
        Authorization, Pub. L. 99-633                               ########

       National Defense Authorization Act for
        Fiscal Years 1988 and 1989, Pub. L. 100-180

       Omnibus Trade and Competitiveness Act of
        1988, Pub. L. 100-418

       United      States-Canada       Free-Trade
        Implementation Act of 1988 Pub. L. 100-449

       Anti-Terrorism   and     Arms     Export
        Amendments Act of 1989, Pub. L. 101-222

       National Defense Authorization Act for
        Fiscal Year 1991, Pub. L. 101-510

       Miscellaneous Foreign Affairs (Title
        III-Control and Elimination of Chemical and

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AN ACT TO provide authority to regulate exports, to               whether they make a significant contribution to the military
improve the efficiency of export regulation, and to               potential of individual countries or combinations of
minimize interference with the ability to engage in               countries may adversely affect the national security of the
commerce.                                                         United States.

                                                                      (6) Uncertainty of export control policy can inhibit the
   Be it enacted by the Senate and the House of                   efforts of United States business and work to the detriment
Representatives of the United States of America in                of the overall attempt to improve the trade balance of the
Congress assembled,                                               United States.

                                                                      (7) Unreasonable restrictions on access to world
                     Section 1.                                   supplies can cause worldwide political and economic
                                                                  instability, interfere with free international trade, and retard
                   SHORT TITLE                                    the growth and development of nations.

                                                                      (8) It is important that the administration of export
This Act may be cited as the “Export Administration               controls imposed for national security purposes give special
Act of 1979”.                                                     emphasis to the need to control exports of technology (and
                                                                  goods which contribute significantly to the transfer of such
                                                                  technology) which could make a significant contribution to
                                                                  the military potential of any country or combination of
                       Section 2.                                 countries which would be detrimental to the national
                      FINDINGS                                    security of the United States.

                                                                       (9) Minimization of restrictions on exports of
The Congress makes the following findings:                        agricultural commodities and products is of critical
                                                                  importance to the maintenance of a sound agricultural
    (1) The ability of United States citizens to engage in        sector, to a positive contribution to the balance of payments,
international commerce is a fundamental concern of United         to reducing the level of Federal expenditures for agricultural
States policy.                                                    support programs, and to United States cooperation in
                                                                  efforts to eliminate malnutrition and world hunger.
    (2) Exports contribute significantly to the economic
well-being of the United States and the stability of the world         (10)   It is important that the administration of export
economy by increasing employment and production in the            controls imposed for foreign policy purposes give special
United States, and by earning foreign exchange, thereby           emphasis to the need to control exports of goods and
contributing favorably to the trade balance. The restriction      substances hazardous to the public health and the
of exports from the United States can have serious adverse        environment which are banned or severely restricted for use
effects on the balance of payments and on domestic                in the United States, and which, if exported, could affect the
employment, particularly when restrictions applied by the         international reputation of the United States as a responsible
United States are more extensive than those imposed by            trading partner.
other countries.
                                                                      (11)    Availability to controlled countries of goods and
    (3) It is important for the national interest of the United   technology from foreign sources is a fundamental concern of
States that both the private sector and the Federal               the United States and should be eliminated through
Government place a high priority on exports, consistent with      negotiations and other appropriate means whenever
the economic, security, and foreign policy objectives of the      possible.
United States.
                                                                       (12)    Excessive dependence of the United States, it
    (4) The availability of certain materials at home and         allies, or countries sharing common strategic objectives with
abroad varies so that the quantity and composition of United      the United States, on energy and other critical resources
States exports and their distribution among importing             from potential adversaries can be harmful to the mutual and
countries may affect the welfare of the domestic economy          individual security of all those countries.
and may have an important bearing upon fulfillment of the
foreign policy of the United States.


    (5) Exports of goods or technology without regard to


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                  Section 3.                                        (A) to oppose restrictive trade practices or
              DECLARATION OF                                 boycotts fostered or imposed by foreign countries
                                                             against other countries friendly to the United States or
                  POLICY                                     against any United States
                                                             person;
The Congress makes the following declarations:
                                                                    (B) to encourage and, in specified cases,
    (1) It is the policy of the United States to minimize    require United States persons engaged in the export of
uncertainties in export control policy and to encourage      goods or technology or other information to refuse to
trade with all countries with which the United States        take actions, including furnishing information or
has diplomatic or trading relations, except those            entering into or implementing agreements, which have
countries with which such trade has been determined          the effect of furthering or supporting the restrictive
by the President to be against the national interest.        trade practices or boycotts fostered or imposed by any
                                                             foreign country against a country friendly to the
    (2) It is the policy of the United States to use         United States or against any United States person; and
export controls only after full consideration of the
impact on the economy of the United States and only                 (C) to foster international cooperation and the
to the extent necessary--                                    development of international rules and institutions to
                                                             assure reasonable access to world supplies.
        (A) to restrict the export of goods and
technology which would make a significant                        (6) It is the policy of the United States that the
contribution to the military potential of any other          desirability of subjecting, or continuing to subject,
country or combination of countries which would              particular goods or technology or other information to
prove detrimental to the national security of the United     United States export controls should be subjected to
States;                                                      review by and consultation with representatives of
                                                             appropriate United States Government agencies and
       (B) to restrict the export of goods and               private industry.
technology where necessary to further significantly
the foreign policy of the United States or to fulfill its        (7) It is the policy of the United States to use
declared international obligations; and                      export controls, including license fees, to secure the
                                                             removal by foreign countries of restrictions on access
       (C) to restrict the export of goods where             to supplies where such restrictions have or may have a
necessary to protect the domestic economy from the           serious domestic inflationary impact, have caused or
excessive drain of scarce materials and to reduce the        may cause a serious domestic shortage, or have been
serious inflationary impact of foreign demand.               imposed for purposes of influencing the foreign policy
                                                             of the United States. In effecting this policy, the
    (3) It is the policy of the United States (A) to apply   President shall make reasonable and prompt efforts to
any necessary controls to the maximum extent                 secure the removal or reduction of such restrictions,
possible in cooperation with all nations, and (B) to         policies, or actions through international cooperation
encourage observance of a uniform export control             and agreement before imposing export controls. No
policy by all nations with which the United States has       action taken in fulfillment of the policy set forth in this
defense treaty commitments or common strategic               paragraph shall apply to the export of medicine or
objectives.                                                  medical supplies.
    (4) It is the policy of the United States to use its         (8) It is the policy of the United States to use
economic resources and trade potential to further the        export controls to encourage other countries to take
sound growth and stability of its economy as well as to      immediate steps to prevent the use of their territories
further its national security and foreign policy             or resources to aid, encourage, or give sanctuary to
objectives.                                                  those persons involved in directing, supporting, or
                                                             participating in acts of international terrorism. To
   (5) It is the policy of the United States--               achieve this objective, the President shall make
                                                             reasonable and prompt efforts to secure the removal or

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reduction of such assistance to international terrorists     dependence on imports of energy and other critical
through international cooperation and agreement              resources from potential adversaries and in developing
before imposing export controls.                             alternative supplies of such resources in order to
                                                             minimize strategic threats posed by excessive hard
    (9) It is the policy of the United States to cooperate   currency earnings derived from such resource exports
with other countries with which the United States has        by countries with policies adverse to the security
defense treaty commitments or common strategic               interests of the United States.
objectives in restricting the export of goods and
technology which would make a significant
contribution to the military potential of any country or                    Section 4.
combination of countries which would prove                             GENERAL PROVISIONS
detrimental to the security of the United States and of
those countries with which the United States has
defense treaty commitments or common strategic               (a) Types of Licenses.-- Under such conditions as
objectives, and to encourage other friendly countries        may be imposed by the Secretary which are consistent
to cooperate in restricting the sale of goods and            with the provisions of this Act, the Secretary may
technology that can harm the security of the United          require any of the following types of export licenses:
States.
                                                                (1) A validated license, authorizing a specific
    (10) It is the policy of the United States that          export, issued pursuant to an application by the
export trade by United States citizens be given a high       exporter.
priority and not be controlled except when such
controls (A) are necessary to further fundamental                (2) Validated licenses authorizing multiple
national security, foreign policy, or short supply           exports, issued pursuant to an application by the
objectives, (B) will clearly further such objectives,        exporter, in lieu of an individual validated license for
and (C) are administered consistent with basic               each such export, including but not limited to the
standards of due process.                                    following:

   (11) It is the policy of the United States to                     (A) A distribution license, authorizing exports
minimize restrictions on the export of agricultural          of goods to approved distributors or users of the goods
commodities and products.                                    in countries other than controlled countries, except
                                                             that the Secretary may establish a type of distribution
    (12) It is the policy of the United States to            license appropriate for consignees in the People's
sustain vigorous scientific enterprise. To do so             Republic of China. The Secretary shall grant the
involves sustaining the ability of scientists and other      distribution license primarily on the basis of the
scholars freely to communicate research findings, in         reliability of the applicant and foreign consignees with
accordance with the applicable provisions of law, by         respect to the prevention of diversion of goods to
means of publication, teaching, conferences, and other       controlled countries. The Secretary shall have the
forms of scholarly exchange.                                 responsibility of determining, with the assistance of all
                                                             appropriate agencies, the reliability of applicants and
    (13) It is the policy of the United States to            their immediate consignees.            The Secretary's
control the export of goods and substances banned or         determination shall be based on appropriate
severely restricted for use in the United States in order    investigations of each applicant and periodic reviews
to foster public health and safety and to prevent injury     of licensees and their compliance with the terms of
to the foreign policy of the United States as well as to     licenses issued under this Act. Factors such as the
the credibility of the United States as a responsible        applicant's products or volume of business, or the
trading partner.                                             consignee's geographic location, sales distribution
                                                             area, or degree of foreign ownership, which may be
    (14) It is the policy of the United States to            relevant with respect to individual cases, shall not be
cooperate with countries which are allies of the United      determinative in creating categories or general criteria
States and countries which share common strategic            for the denial of applications or withdrawal of a
objectives with the United States in minimizing              distribution license.


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                                                              United States in sufficient quantities and comparable
        (B) A comprehensive operations license,               in quality to those produced in the United States so as
authorizing exports and reexports of technology and           to render the controls ineffective in achieving their
related goods, including items from the list of               purposes, unless the President determines that
militarily critical technologies developed pursuant to        adequate evidence has been presented to him
section 5(d) of this Act which are included on the            demonstrating that the absence of such controls would
control list in accordance with that section, from a          prove detrimental to the foreign policy or national
domestic concern to and among its foreign                     security of the United States. In complying with the
subsidiaries, affiliates, joint venturers, and licensees      provisions of this subsection, the President shall give
that have long-term, contractually defined relations          strong emphasis to bilateral or multilateral
with the exporter, are located in countries other than        negotiations to eliminate foreign availability. The
controlled countries, (except the People's Republic of        Secretary and the Secretary of Defense shall cooperate
China) and are approved by the Secretary. The                 in gathering information relating to foreign
Secretary shall grant the license to manufacturing,           availability, including the establishment and
laboratory, or related operations on the basis of             maintenance of a jointly operated computer system.
approval of the exporter's systems of control,
including internal proprietary controls, applicable to        (d) Right of Export.-- No authority or permission to
the technology and related goods to be exported rather        export may be required under this Act, or under
than approval of individual export transactions. The          regulations issued under this Act, except to carry out
Secretary and the Commissioner of Customs,                    the policies set forth in section 3 of this Act.
consistent with their authorities under section 12(a) of
this Act, and with the assistance of all appropriate          (e) Delegation of Authority.-- The President may
agencies, shall periodically, but not less frequently         delegate the power, authority, and discretion conferred
than annually, perform audits of licensing procedures         upon him by this Act to such departments, agencies, or
under this subparagraph in order to assure the integrity      officials of the Government as he may consider
and effectiveness of those procedures.                        appropriate, except that no authority under this Act
                                                              may be delegated to, or exercised by, any official of
      (C) A project license, authorizing exports of           any department or agency the head of which is not
goods or technology for a specified activity.                 appointed by the President, by and with the advice and
                                                              consent of the Senate. The President may not
       (D) A service supply license, authorizing              delegate or transfer his power, authority, and
exports of spare or replacement parts for goods               discretion to overrule or modify any recommendation
previously exported.                                          or decision made by the Secretary, the Secretary of
                                                              Defense, or the Secretary of State pursuant to the
   (3) A general license, authorizing exports, without        provisions of this Act.
application by the exporter.
                                                              (f) Notification of the Public; Consultation with
    (4) Such other licenses as may assist in the              Business.-- The Secretary shall keep the public fully
effective and efficient implementation of this Act.           apprised of changes in export control policy and
                                                              procedures instituted in conformity with this Act with
(b) Control List.-- The Secretary shall establish and         a view to encouraging trade. The Secretary shall
maintain a list (hereinafter in this Act referred to as the   meet regularly with representatives of a broad
“control list”) stating license requirements (other than      spectrum of enterprises, labor organizations, and
for general licenses) for exports of goods and                citizens interested in or affected by export controls, in
technology under this Act.                                    order to obtain their views on United States export
                                                              control policy and the foreign availability of goods
(c) Foreign Availability.-- In accordance with the            and technology.
provisions of this Act, the President shall not impose
export controls for foreign policy or national security       (g) Fees.-- No fee may be charged in connection
purposes on the export from the United States of              with the submission or processing of an export license
goods or technology which he determines are                   application.
available without restriction from sources outside the

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                                                            States pursuant to the agreement of the group known
            Section 5.                                      as the Coordinating Committee [Coordinating
  NATIONAL SECURITY CONTROLS                                Committee for Multilateral Export Controls], or
                                                            pursuant to an agreement described in subsection (k)
(a) Authority--                                             of this section. The Secretary may require any person
                                                            reexporting any goods or technology under this
    (1) In order to carry out the policy set forth in       subparagraph to notify the Secretary of such reexports.
section 3(2)(A) of this Act, the President may, in
accordance with the provisions of this section, prohibit           (B) Notwithstanding subparagraph (A), the
or curtail the export of any goods or technology            Secretary may require authority or permission to
subject to the jurisdiction of the United States or         reexport the following:
exported by any person subject to the jurisdiction of
the United States. The authority contained in this                     (i)   supercomputers;
subsection includes the authority to prohibit or curtail
the transfer of goods or technology within the United                 (ii) goods or technology for sensitive
States to embassies and affiliates of controlled               nuclear uses (as defined by the Secretary);
countries. For purposes of the preceding sentence,
the term “affiliates” includes both governmental                      (iii) devices for surreptitious interception
entities and commercial entities that are controlled in        of wire or oral communications; and
fact by controlled countries. The authority contained
in this subsection shall be exercised by the Secretary,               (iv) goods or technology intended for
in consultation with the Secretary of Defense, and             such end users as the Secretary may specify by
such other departments and agencies as the Secretary           regulation.
considers appropriate, and shall be implemented by
means of export licenses described in section 4(a) of           (5) (A) Except as provided in subparagraph (B), no
this Act.                                                   authority or permission may be required under this
                                                            section to reexport any goods or technology subject to
    (2) Whenever the Secretary makes any revision           the jurisdiction of the United States from any country
with respect to any goods or technology, or with            when the goods or technology to be reexported are
respect to the countries or destinations, affected by       incorporated in another good and--
export controls imposed under this section, the
Secretary shall publish in the Federal Register a notice               (i) the value of the controlled United
of such revision and shall specify in such notice that         States content of that other good is 25 percent or
the revision relates to controls imposed under the             less of the total value of the good; or
authority contained in this section.
                                                                       (ii) the export of the goods or technology to
    (3) In issuing regulations to carry out this section,      a controlled country would require only
particular attention shall be given to the difficulty of       notification of the participating governments of the
devising effective safeguards to prevent a country that        Coordinating Committee.
poses a threat to the security of the United States from
diverting critical technologies to military use, the        For purposes of this paragraph, the “controlled United
difficulty of devising effective safeguards to protect      States content” of a good means those goods or
critical goods, and the need to take effective measures     technology subject to the jurisdiction of the United
to prevent the reexport of critical technologies from       States which are incorporated in the good, if the export
other countries to countries that pose a threat to the      of those goods or technology from the United States to
security of the United States.                              a country, at the time that the good is exported to that
                                                            country, would require a validated license.
   (4) (A) No authority or permission may be required
under this section to reexport any goods or technology              (B) The Secretary may by regulation provide
subject to the jurisdiction of the United States to any     that subparagraph (A) does not apply to the reexport of
country which maintains export controls on such             a supercomputer which contains goods or technology
goods or technology cooperatively with the United           subject to the jurisdiction of the United States.

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                                                           controlled for national security purposes other than
   (6) Not later than 90 days after the date of the        countries on the list of controlled countries specified
enactment of this paragraph, the Secretary shall issue     in this paragraph. The President shall review not less
regulations to carry out paragraphs (4) and (5). Such      frequently than every three years in the case of
regulations shall define the term “supercomputer” for      controls maintained cooperatively with other nations,
purposes of those paragraphs.                              and annually in the case of all other controls, United
                                                           States policy toward individual countries to determine
(b) Policy Toward Individual Countries--                   whether such policy is appropriate in light of the
                                                           factors set forth in this paragraph.
    (1) In administering export controls for national
security purposes under this section, the President            (2) (A) Except as provided in subparagraph (B), no
shall establish as a list of controlled countries those    authority or permission may be required under this
countries set forth in section 620(f) of the Foreign       section to export goods or technology to a country
Assistance Act of 1961 [22 U.S.C. 2370(f)], except         which maintains export controls on such goods or
that the President may add any country to or remove        technology cooperatively with the United States
any country from such list of controlled countries if he   pursuant to the agreement of the group known as the
determines that the export of goods or technology to       Coordinating Committee or pursuant to an agreement
such country would or would not (as the case may be)       described in subsection (k) of this section, if the export
make a significant contribution to the military            of such goods or technology to the People's Republic
potential of such country or a combination of countries    of China or a controlled country on the date of the
which would prove detrimental to the national security     enactment of the Export Enhancement Act of 1988,
of the United States. In determining whether a             [August 23, 1988, Title II - Pub. L. 100-418] would
country is added to or removed from the list of            require only notification of the participating
controlled countries, the President shall take into        governments of the Coordinating Committee.
account--
                                                                  (B) (i) The Secretary may require a license
       (A) the extent to which the country's policies         for the export of goods or technology described in
are adverse to the national security interests of the         subparagraph (A) to such end users as the
United States;                                                Secretary may specify by regulation.

      (B) the    country's          Communist        or              (ii) The Secretary may require any person
non-Communist status;                                         exporting goods or technology under this
                                                              paragraph to notify the Secretary of those exports.
       (C) the present and potential relationship of the
country with the United States;                                    (C) The Secretary shall, within 3 months after
                                                           the date of the enactment of the Export Enhancement
       (D) the present and potential relationships of      Act of 1988, determine which countries referred to in
the country with countries friendly or hostile to the      subparagraph (A) are implementing an effective
United States;                                             export control system consistent with principles
                                                           agreed to in the Coordinating Committee, including
       (E) the country's nuclear weapons capability        the following:
and the country's compliance record with respect to
multilateral nuclear weapons agreements to which the                  (i) national laws providing appropriate
United States is a party; and                                 civil and criminal penalties and statutes of
                                                              limitations sufficient to deter potential violations;
       (F) such other factors as the President
considers appropriate.                                               (ii) a program to evaluate export license
                                                              applications that includes sufficient technical
Nothing in the preceding sentence shall be interpreted        expertise to assess the licensing status of exports
to limit the authority of the President provided in this      and ensure the reliability of end-users;
Act to prohibit or curtail the export of any goods or
technology to any country to which exports are                        (iii)   an enforcement mechanism that

Export Administration Regulations                                                                  January 23, 2013
Legal Authority                                                                                                  14

   provides authority for trained enforcement officers     Secretary, the Secretary of Defense may, within 20
   to investigate and prevent illegal exports;             days after receiving notification of the Secretary's
                                                           determination, refer the matter to the President for
          (iv)     a system of export control              resolution. The Secretary of Defense shall notify the
   documentation to verify the movement of goods           Secretary of any such referral. The President shall,
   and technology; and                                     not later than 20 days after such referral, notify the
                                                           Secretary of his determination with respect to the
          (v) procedures for the coordination and          inclusion of such items on the list. Failure of the
   exchange of information concerning violations of        Secretary of Defense to notify the President or the
   the agreement of the Coordinating Committee.            Secretary, or failure of the President to notify the
                                                           Secretary, in accordance with this paragraph, shall be
The Secretary shall, at least once each year, review the   deemed by the Secretary to constitute concurrence in
determination made under the preceding sentence with       the implementation of the actions proposed by the
respect to all countries referred to in subparagraph       Secretary regarding the inclusion of such items on the
(A).     The Secretary may, as appropriate, add            list.
countries to, or remove countries from, the list of
countries that are implementing an effective export              (3) The Secretary shall conduct partial reviews
control system in accordance with this subparagraph.       of the list established pursuant to this subsection at
No authority or permission to export may be required       least once each calendar quarter in order to carry out
for the export of goods or technology to a country on      the policy set forth in section 3(2)(A) of this Act and
such list.                                                 the provisions of this section, and shall promptly make
                                                           such revisions of the list as may be necessary after
     (3) (A) No authority or permission may be             each such review. Before beginning each quarterly
required under this section to export to any country,      review, the Secretary shall publish notice of that
other than a controlled country, any goods or              review in the Federal Register. The Secretary shall
technology if the export of the goods or technology to     provide a 30-day period during each review for
controlled countries would require only notification of    comment and the submission of data, with or without
the participating governments of the Coordinating          oral presentation, by interested Government agencies
Committee.                                                 and other affected or potentially affected parties.
                                                           After consultation with appropriate Government
       (B) The Secretary may require any person            agencies, the Secretary shall make a determination of
exporting any goods or technology under                    any revisions in the list within 30 days after the end of
subparagraph (A) to notify the Secretary of those          the review period. The concurrence or approval of
exports.                                                   any other department or agency is not required before
                                                           any such revision is made. The Secretary shall
(c) Control List--                                         publish in the Federal Register any revisions in the
                                                           list, with an explanation of the reasons for the
    (1) The Secretary shall establish and maintain, as     revisions. The Secretary shall use the data developed
part of the control list, a list of all goods and          from each review in formulating United States
technology subject to export controls under this           proposals relating to multilateral controls in the group
section. Such goods and technology shall be clearly        known as the Coordinating Committee.                 The
identified as being subject to controls under this         Secretary shall further assess, as part of each review,
section.                                                   the availability from sources outside the United States
                                                           of goods and technology comparable to those subject
     (2) The Secretary of Defense and other appropriate    to export controls imposed under this section. All
departments and agencies shall identify goods and          goods and technology on the list shall be reviewed at
technology for inclusion on the list referred to in        least once each year.         The provisions of this
paragraph (1). Those items which the Secretary and         paragraph apply to revisions of the list which consist
the Secretary of Defense concur shall be subject to        of removing items from the list or making changes in
export controls under this section shall comprise such     categories of, or other specifications in, items on the
list. If the Secretary and the Secretary of Defense are    list.
unable to concur on such items, as determined by the

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    (4) The appropriate technical advisory committee           President, by the end of the applicable 6-month
appointed under subsection (h) of this section shall be        period, is actively pursuing negotiations with other
consulted by the Secretary with respect to changes,            countries to achieve multilateral export controls on
pursuant to paragraph (2) or (3), in the list established      those goods or technology may be renewed for 2
pursuant to this subsection, and such technical                periods of not more than 6 months each.
advisory committee may submit recommendations to
the Secretary with respect to such changes. The                    (B) Export controls on goods or technology
Secretary shall consider the recommendations of the         described in clause (i) or (ii) of subparagraph (A) may
technical advisory committee and shall inform the           be renewed only if, before each renewal, the President
committee of the disposition of its recommendations.        submits to the Congress a report setting forth all the
                                                            controls being renewed and stating the specific
    (5) (A) Not later than 6 months after the date of       reasons for such renewal.
enactment of this paragraph [August 23, 1988], the
following shall no longer be subject to export controls         (7) Notwithstanding any other provision of this
under this section:                                         subsection, after 1 year has elapsed since the last
                                                            review in the Federal Register on any item within a
           (i) All goods and technology the export          category on the control list the export of which to the
   of which to controlled countries on the date of the      People's Republic of China would require only
   enactment of the Export Enhancement Act of 1988          notification of the members of the group known as the
   would require only notification of the participating     Coordinating Committee, an export license applicant
   governments of the Coordinating Committee,               may file an allegation with the Secretary that such
   except for those goods or technology on which the        item has not been so reviewed within such 1-year
   Coordinating Committee agrees to maintain such           period. Within 90 days after receipt of such
   notification requirement.                                allegation, the Secretary--

          (ii) All medical instruments and                         (A) shall determine the truth of the allegation;
   equipment, subject to the provisions of subsection
   (m) of this section.                                          (B) shall, if the allegation is confirmed,
                                                            commence and complete the review of the item; and
       (B) The Secretary shall submit to the Congress
annually a report setting forth the goods and                      (C) shall, pursuant to such review, submit a
technology from which export controls have been             finding for publication in the Federal Register.
removed under this paragraph.
                                                            In such finding, the Secretary shall identify those
    (6) (A) Notwithstanding subsection (f) or (h)(6) of     goods or technology which shall remain on the control
this section, any export control imposed under this         list and those goods or technology which shall be
section which is maintained unilaterally by the United      removed from the control list. If such review and
States shall expire 6 months after the date of the          submission for publication are not completed within
enactment of this paragraph, or 6 months after the          that 90-day period, the goods or technology
export control is imposed, whichever date is                encompassed by such item shall immediately be
later, except that--                                        removed from the control list.

          (i) any such export controls on those             (d) Militarily Critical Technologies.—
   goods or technology for which a determination of
   the Secretary that there is no foreign availability          (1) The Secretary, in consultation with the
   has been made under subsection (f) or (h)(6) of this     Secretary of Defense, shall review and revise the list
   section before the end of the applicable 6-month         established pursuant to subsection (c), as prescribed in
   period and is in effect may be renewed for periods       paragraph (3) of such subsection, for the purpose of
   of not more than 6 months each, and                      insuring that export controls imposed under this
                                                            section cover and (to the maximum extent consistent
         (ii)  any such export controls on those            with the purposes of this Act) are limited to militarily
   goods or technology with respect to which the            critical goods and technologies and the mechanisms

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Legal Authority                                                                                                      16

through which such goods and technologies may be              such good or technology is or would be ineffective in
effectively transferred.                                      achieving the purpose set forth in subsection (a) of this
                                                              section. The Secretary and the Secretary of Defense
    (2) The Secretary of Defense shall bear primary           shall jointly submit a report to the Congress, not later
responsibility for developing a list of militarily critical   than 1 year after the date of the enactment of the
technologies.     In developing such list, primary            Export Administration Amendments Act of 1985, on
emphasis shall be given to--                                  actions taken to carry out this paragraph. For the
                                                              purposes of this paragraph, assessment of whether a
      (A) arrays     of   design    and    manufacturing      good or technology is functionally equivalent shall
know-how,                                                     include consideration of the factors described in
                                                              subsection (f)(3) of this section.
        (B) keystone manufacturing, inspection, and
test equipment,                                                   (5) The Secretary of Defense shall establish a
                                                              procedure for reviewing the goods and technology on
       (C) goods accompanied by sophisticated                 the list of militarily critical technologies on an
operation, application, or maintenance know-how, and          ongoing basis for the purpose of removing from the
                                                              list of militarily critical technologies any goods or
        (D) keystone equipment which would reveal or          technology that are no longer militarily critical. The
give insight into the design and manufacture of a             Secretary of Defense may add to the list of militarily
United States military system, which are not possessed        critical technologies any good or technology that the
by, or available in fact from sources outside the United      Secretary of Defense determines is militarily critical,
States to, controlled countries and which, if exported,       consistent with the provisions of paragraph (2) of this
would permit a significant advance in a military              subsection. If the Secretary and the Secretary of
system of any such country.                                   Defense disagree as to whether any change in the list
                                                              of militarily critical technologies by the addition or
    (3) The list referred to in paragraph (2) shall be        removal of a good or technology should also be made
sufficiently specific to guide the determinations of any      in the control list, consistent with the provisions of the
official exercising export licensing responsibilities         fourth sentence of paragraph (4) of this subsection, the
under this Act.                                               President shall resolve the disagreement.

    (4) The Secretary and the Secretary of Defense                (6) The establishment of adequate export controls
shall integrate items on the list of militarily critical      for militarily critical technology and keystone
technologies into the control list in accordance with         equipment shall be accompanied by suitable
the requirements of subsection (c) of this section.           reductions in the controls on the products of that
The integration of items on the list of militarily critical   technology and equipment.
technologies into the control list shall proceed with all
deliberate speed. Any disagreement between the                    (7) The Secretary of Defense shall, not later than 1
Secretary and the Secretary of Defense regarding the          year after the date of the enactment of the Export
integration of an item on the list of militarily critical     Administration Amendments Act of 1985 [July 12,
technologies into the control list shall be resolved by       1985], report to the Congress on efforts by the
the President. Except in the case of a good or                Department of Defense to assess the impact that the
technology for which a validated license may be               transfer of goods or technology on the list of militarily
required under subsection (f)(4) or (h)(6) of this            critical technologies to controlled countries has had or
section, a good or technology shall be included on the        will have on the military capabilities of those
control list only if the Secretary finds that controlled      countries.
countries do not possess that good or technology, or a
functionally equivalent good or technology, and the           (e) Export Licenses.--
good or technology or functionally equivalent good or
technology is not available in fact to a controlled               (1) The Congress finds that the effectiveness and
country from sources outside the United States in             efficiency of the process of making export licensing
sufficient quantity and of comparable quality so that         determinations under this section is severely
the requirement of a validated license for the export of      hampered by the large volume of validated export

Export Administration Regulations                                                                     January 23, 2013
Legal Authority                                                                                                    17

license applications required to be submitted under          section 4(a)(2)(B) of this Act.
this Act. Accordingly, it is the intent of Congress in
this subsection to encourage the use of the multiple             (6) Any application for a license for the export to
validated export licenses described in section 4(a)(2)       the People's Republic of China of any good on which
of this Act in lieu of individual validated licenses.        export controls are in effect under this section, without
                                                             regard to the technical specifications of the good, for
    (2) To the maximum extent practicable, consistent        the purpose of demonstration or exhibition at a trade
with the national security of the United States, the         show shall carry a presumption of approval if--
Secretary shall require a validated license under this
section for the export of goods or technology only if--              (A) the United States exporter retains title to
                                                             the good during the entire period in which the good is
        (A) the export of such goods or technology is        in the People's Republic of China; and
restricted pursuant to a multilateral agreement, formal
or informal, to which the United States is a party and,             (B) the exporter removes the good from the
under the terms of such multilateral agreement, such         People's Republic of China no later than at the
export requires the specific approval of the parties to      conclusion of the trade show.
such multilateral agreement;
                                                             (f) Foreign Availability.--
       (B) with respect to such goods or technology,
other nations do not possess capabilities comparable            (1) Foreign      Availability      to     Controlled
to those possessed by the United States; or                  Countries.—

       (C) the United States is seeking the agreement                (A) The Secretary, in consultation with the
of other suppliers to apply comparable controls to such      Secretary of Defense and other appropriate
goods or technology and, in the judgment of the              Government agencies and with appropriate technical
Secretary, United States export controls on such goods       advisory committees established pursuant to
or technology, by means of such license, are necessary       subsection (h) of this section, shall review, on a
pending the conclusion of such agreement.                    continuing basis, the availability to controlled
                                                             countries, from sources outside the United States,
    (3) The Secretary, subject to the provisions of          including countries which participate with the United
subsection (1) of this section, shall not require an         States in multilateral export controls, of any goods or
individual validated export license for replacement          technology the export of which requires a validated
parts which are exported to replace on a one-for-one         license under this section. In any case in which the
basis parts that were in a good that has been lawfully       Secretary determines, in accordance with procedures
exported from the United States.                             and criteria which the Secretary shall by regulation
                                                             establish, that any such goods or technology are
    (4) The Secretary shall periodically review the          available in fact to controlled countries from such
procedures with respect to the multiple validated            sources in sufficient quantity and of comparable
export licenses, taking appropriate action to increase       quality so that the requirement of a validated license
their    utilization   by   reducing     qualification       for the export of such goods or technology is or would
requirements or lowering minimum thresholds, to              be ineffective in achieving the purpose set forth in
combine procedures which appear to be of marginal            subsection (a) of this section, the Secretary may not,
utility.                                                     after the determination is made, require a validated
                                                             license for the export of such goods or technology
    (5) The export of goods subject to export controls       during the period of such foreign availability, unless
under this section shall be eligible, at the discretion of   the President determines that the absence of export
the Secretary, for a distribution license and other          controls under this section on the goods or technology
licenses authorizing multiple exports of goods, in           would prove detrimental to the national security of the
accordance with section 4(a)(2) of this Act. The             United States. In any case in which the President
export of technology and related goods subject to            determines under this paragraph that export controls
export controls under this section shall be eligible for a   under this section must be maintained notwithstanding
comprehensive operations license in accordance with          foreign availability, the Secretary shall publish that

Export Administration Regulations                                                                   January 23, 2013
Legal Authority                                                                                                   18

determination, together with a concise statement of its     technology. The requirement with respect to a
basis and the estimated economic impact of the              validated license in the preceding sentence shall not
decision.                                                   apply if the President determines that the absence of
                                                            export controls under this section on the goods or
        (B) The Secretary shall approve any                 technology would prove detrimental to the national
application for a validated license which is required       security of the United States. In any case in which
under this section for the export of any goods or           the President determines under this paragraph that
technology to a controlled country and which meets all      export controls under this section must be maintained
other requirements for such an application, if the          notwithstanding foreign availability, the Secretary
Secretary determines that such goods or technology          shall publish that determination, together with a
will, if the license is denied, be available in fact to     concise statement of its basis and the estimated
such country from sources outside the United States,        economic impact of the decision.
including countries which participate with the United
States in multilateral export controls, in sufficient              (B) The Secretary shall approve any
quantity and of comparable quality so that denial of        application for a validated license which is required
the license would be ineffective in achieving the           under this section for the export of any goods or
purpose set forth in subsection (a) of this section,        technology to a country (other than a controlled
unless the President determines that approving the          country) and which meets all other requirements for
license application would prove detrimental to the          such an application, if the Secretary determines that
national security of the United States. In any case in      such goods or technology are available from foreign
which the Secretary makes a determination of foreign        sources to that country under the criteria established in
availability under this subparagraph with respect to        subparagraph (A), unless the President determines that
any goods or technology, the Secretary shall                approving the license application would prove
determine whether a determination of foreign                detrimental to the national security of the United
availability under subparagraph (A) with respect to         States. In any case in which the Secretary makes a
such goods or technology is warranted.                      determination of foreign availability under this
                                                            subparagraph with respect to any goods or technology,
   (2) Foreign Availability to Other Than Controlled        the Secretary shall determine whether a determination
Countries--                                                 of foreign availability under subparagraph (A) with
                                                            respect to such goods or technology is warranted.
        (A) The Secretary shall review, on a continuing
basis, the availability to countries other than                (3) Procedures for Making Determinations.—
controlled countries, from sources outside the United
States, of any goods or technology the export of which              (A) The Secretary shall make a foreign
requires a validated license under this section. If the     availability determination under paragraph (1) or (2)
Secretary determines, in accordance with procedures         on the Secretary's own initiative or upon receipt of an
which the Secretary shall establish, that any goods or      allegation from an export license applicant that such
technology in sufficient quantity and of comparable         availability exists.       In making any such
quality are available in fact from sources outside the      determination, the Secretary shall accept the
United States (other than availability under license        representations of applicants made in writing and
from a country which maintains export controls on           supported by reasonable evidence, unless such
such goods or technology cooperatively with the             representations are contradicted by reliable evidence,
United States pursuant to the agreement of the group        including scientific or physical examination, expert
known as the Coordinating Committee or pursuant to          opinion based upon adequate factual information, or
an agreement described in subsection (k) of this            intelligence information. In making determinations
section), the Secretary may not, after the                  of foreign availability, the Secretary may consider
determination is made and during the period of such         such factors as cost, reliability, the availability and
foreign availability, require a validated license for the   reliability of spare parts and the cost and quality
export of such goods or technology to any country           thereof, maintenance programs, durability, quality of
(other than a controlled country) to which the country      end products produced by the item proposed for
from which the goods or technology is available does        export, and scale of production. For purposes of this
not place controls on the export of such goods or           subparagraph, “evidence” may include such items as

Export Administration Regulations                                                                  January 23, 2013
Legal Authority                                                                                                    19

foreign manufacturers' catalogues, brochures, or             availability allegation was made. In the case of a
operations or maintenance manuals, articles from             foreign availability determination under paragraph (1)
reputable trade publications, photographs, and               to which clause (i)(III) applies, no license for such
depositions based upon eyewitness accounts.                  export may be required after the end of the 9-month
                                                             period beginning on the date on which the allegation is
        (B) In a case in which an allegation is received     received.
from an export license applicant, the Secretary shall,
upon receipt of the allegation, submit for publication         (4) Negotiations        to     Eliminate      Foreign
in the Federal Register notice of such receipt. Within       Availability.--
4 months after receipt of the allegation, the Secretary
shall determine whether the foreign availability exists,             (A) In any case in which export controls are
and shall so notify the applicant. If the Secretary has      maintained under this section notwithstanding foreign
determined that the foreign availability exists, the         availability, on account of a determination by the
Secretary shall, upon making such determination,             President that the absence of the controls would prove
submit the determination for review to other                 detrimental to the national security of the United
departments and agencies as the Secretary considers          States, the President shall actively pursue negotiations
appropriate. The Secretary's determination of foreign        with the governments of the appropriate foreign
availability does not require the concurrence or             countries for the purpose of eliminating such
approval of any official, department, or agency to           availability. No later than the commencement of
which such a determination is submitted. Not later           such negotiations, the President shall notify in writing
than 1 month after the Secretary makes the                   the committee on Banking, Housing, and Urban
determination, the Secretary shall respond in writing        Affairs of the Senate and the Committee on
to the applicant and submit for publication in the           International Relations of the House of
Federal Register, that--                                     Representatives that he has begun such negotiations
                                                             and why he believes it is important to national security
           (i) the foreign availability does exist and--     that export controls on the goods or technology
                                                             involved be maintained.
              (I) the requirement of a validated
   license has been removed,                                         (B) If, within 6 months after the President's
                                                             determination that export controls be maintained, the
               (II)     the President has determined         foreign availability has not been eliminated, the
   that export controls under this section must be           Secretary may not, after the end of that 6-month
   maintained       notwithstanding    the    foreign        period, require a validated license for the export of the
   availability and the applicable steps are being           goods or technology involved. The President may
   taken under paragraph (4), or                             extend the 6-month period described in the preceding
                                                             sentence for an additional 12 months if the President
               (III)   in the case of a foreign              certifies to the Congress that the negotiations involved
   availability determination under paragraph (1), the       are progressing and that the absence of the export
   foreign availability determination will be                controls involved would prove detrimental to the
   submitted to a multilateral review process in             national security of the United States. Whenever the
   accordance with the agreement of the                      President has reason to believe that goods or
   Coordinating Committee for a period of not more           technology subject to export controls for national
   than 4 months beginning on the date of the                security purposes by the United States may become
   publication; or                                           available from other countries to controlled countries
                                                             and that such availability can be prevented or
           (ii)   the foreign availability does not exist.   eliminated by means of negotiations with such other
                                                             countries, the President shall promptly initiate
In any case in which the submission for publication is       negotiations with the governments of such other
not made within the time period specified in the             countries to prevent such foreign availability.
preceding sentence, the Secretary may not thereafter
require a license for the export of the goods or                    (C) After an agreement is reached with a
technology with respect to which the foreign                 country pursuant to negotiations under this paragraph

Export Administration Regulations                                                                   January 23, 2013
Legal Authority                                                                                                 20

to eliminate or prevent foreign availability of goods or          (D) The provisions of paragraphs (1), (2), (3),
technology, the Secretary may not require a validated      and (4) do not apply with respect to determinations of
license for the export of such goods or technology to      foreign availability under this paragraph.
that country.
                                                               (6) Office of Foreign Availability.--           The
   (5) Expedited License for Items Available to            Secretary shall establish in the Department of
Countries Other Than Controlled Countries.--               Commerce an Office of Foreign Availability, which
                                                           shall be under the direction of the Under Secretary of
       (A) In any case in which the Secretary finds        Commerce for Export Administration. The Office
that any goods or technology from foreign sources is       shall be responsible for gathering and analyzing all the
of similar quality to goods or technology the export of    necessary information in order for the Secretary to
which requires a validated license under this section      make determinations of foreign availability under this
and is available to a country other than a controlled      Act. The Secretary shall make available to the
country without effective restrictions, the Secretary      Committee on International Relations of the House of
shall designate such goods or technology as eligible       Representatives and the Committee on Banking,
for export to such country under this paragraph.           Housing and Urban Affairs of the Senate at the end of
                                                           each 6-month period during a fiscal year information
        (B) In the case of goods or technology             on the operations of the Office, and on improvements
designated under subparagraph (A), then 20 working         in the Government's ability to assess foreign
days after the date of formal filing with the Secretary    availability, during that 6-month period, including
of an individual validated license application for the     information on the training of personnel, the use of
export of those goods or technology to an eligible         computers, and the use of Foreign Commercial
country, a license for the transaction specified in the    Service officers. Such information shall also include
application shall become valid and effective and the       a description of representative determinations made
goods or technology are authorized for export              under this Act during that 6-month period that foreign
pursuant to such license unless the license has been       availability did or did not exist (as the case may be),
denied by the Secretary on account of an inappropriate     together with an explanation of such determinations.
end user. The Secretary may extend the 20-day
period provided in the preceding sentence for an               (7) Sharing of Information.-- Each department or
additional period of 15 days if the Secretary requires     agency of the United States, including any intelligence
additional time to consider the application and so         agency, and all contractors with any such department
notifies the applicant.                                    or agency, shall, upon the request of the Secretary and
                                                           consistent with the protection of intelligence sources
        (C) The Secretary may make a foreign               and methods, furnish information to the Office of
availability determination under subparagraph (A) on       Foreign Availability concerning foreign availability of
the Secretary's own initiative, upon receipt of an         goods and technology subject to export controls under
allegation from an export license applicant that such      this Act.    Each such department or agency shall
availability exists, or upon the submission of a           allow the Office of Foreign Availability access to any
certification by a technical advisory committee of         information from a laboratory or other facility within
appropriate jurisdiction that such availability exists.    such department or agency.
Upon receipt of such an allegation or certification, the
Secretary shall publish notice of such allegation or           (8) Removal of Controls on Less Sophisticated
certification in the Federal Register and shall make       Goods or Technology.-- In any case in which the
the foreign availability determination within 30 days      Secretary may not, pursuant to paragraph (1), (2), (3)
after such receipt and publish the determination in the    or (4) of this subsection or paragraph (6) of subsection
Federal Register. In the case of the failure of the        (h) of this section, require a validated license for the
Secretary to make and publish such determination           export of goods or technology, then the Secretary may
within that 30-day period, the goods or technology         not require a validated license for the export of any
involved shall be deemed to be designated as eligible      similar goods or technology whose function,
for export to the country or countries involved, for       technological approach, performance thresholds, and
purposes of subparagraph (B).                              other attributes that form the basis for export controls
                                                           under this section do not exceed the technical

Export Administration Regulations                                                                January 23, 2013
Legal Authority                                                                                                21

parameters of the goods or technology from which the       technology shall not be removed from the list. The
validated license requirement is removed under the         Secretary shall also consider, where appropriate,
applicable paragraph.                                      removing site visitation requirements for goods and
                                                           technology which are removed from the list unless
    (9) Notice    of     All    Foreign     Availability   objections described in this subsection are raised.
Assessments-- Whenever the Secretary undertakes a
foreign availability assessment under this subsection         (2) (A) In carrying out this subsection, the
or subsection (h)(6), the Secretary shall publish notice   Secretary shall conduct annual reviews of the
of such assessment in the Federal Register.                performance levels of goods or technology--

    (10) Availability Defined.-- For purposes of                      (i) which are eligible for export under a
this subsection and subsections (f) and (h), the term         distribution license,
“available in fact to controlled countries” includes
production or availability of any goods or technology               (ii) below which exports to the People's
in any country--                                              Republic of China require only notification of the
                                                              governments participating in the group known as
        (A) from which the goods or technology is not         the Coordinating Committee, and
restricted for export to any controlled country; or
                                                                     (iii)   below which no authority or
      (B) in which such export restrictions are               permission to export may be required under
determined by the Secretary to be ineffective.                subsection (b)(2) or (b)(3) of this section.

For purposes of subparagraph (B), the mere inclusion       The Secretary shall make appropriate adjustments to
of goods or technology on a list of goods or               such performance levels based on these reviews.
technology subject to bilateral or multilateral national
security export controls shall not alone constitute               (B) In any case in which the Secretary receives
credible evidence that a country provides an effective     a request which--
means of controlling the export of such goods or
technology to controlled countries.                                   (i) is to revise the qualification
                                                              requirements or minimum thresholds of any goods
(g) Indexing.--                                               eligible for export under distribution license, and

    (1) In order to ensure that requirements for                      (ii) is made by an exporter of such goods,
validated licenses and other licenses authorizing             representatives of an industry which produces such
multiple exports are periodically removed as goods or         goods, or a technical advisory committee
technology subject to such requirements become                established under subsection (h) of this section,
obsolete with respect to the national security of the
United States, regulations issued by the Secretary         the Secretary, after consulting with other appropriate
may, where appropriate, provide for annual increases       Government agencies and technical advisory
in the performance levels of goods or technology           committees established under subsection (h) of this
subject to any such licensing requirement. The             section, shall determine whether to make such
regulations issued by the Secretary shall establish as     revision, or some other appropriate revision, in such
one criterion for the removal of goods or technology       qualification requirements or minimum thresholds.
from such license requirements the anticipated needs       In making this determination, the Secretary shall take
of technology which no longer meets the performance        into account the availability of the goods from sources
levels established by the regulations shall be removed     outside the United States. The Secretary shall make a
from the list established pursuant to subsection (c) of    determination on a request made under this
this section unless, under such exceptions and under       subparagraph within 90 days after the date on which
such procedures as the Secretary shall prescribe, any      the request is filed. If the Secretary's determination
other department or agency of the United States            pursuant to such a request is to make a revision, such
objects to such removal and the Secretary determines,      revision shall be implemented within 120 days after
on the basis of such objection, that the goods or          the date on which the request is filed and shall be

Export Administration Regulations                                                                January 23, 2013
Legal Authority                                                                                                  22

published in the Federal Register.                         present evidence to such committees.

(h) Technical Advisory Committees.--                           (3) Upon request of any member of any such
                                                           committee, the Secretary may, if the Secretary
    (1) Upon written request by representatives of a       determines it appropriate, reimburse such member for
substantial segment of any industry which produces         travel, subsistence, and other necessary expenses
any goods or technology subject to export controls         incurred by such member in connection with the duties
under this section or being considered for such            of such member.
controls because of their significance to the national
security of the United States, the Secretary shall             (4) Each such committee shall elect a chairman,
appoint a technical advisory committee for any such        and shall meet at least every three months at the call of
goods or technology which the Secretary determines         the chairman, unless the chairman determines, in
are difficult to evaluate because of questions             consultation with the other members of the committee,
concerning technical matters, worldwide availability,      that such a meeting is not necessary to achieve the
and actual utilization of production and technology, or    purposes of this subsection. Each such committee
licensing procedures. Each such committee shall            shall be terminated after a period of 2 years, unless
consist of representatives of United States industry       extended by the Secretary for additional periods of 2
and Government, including the Departments of               years.    The Secretary shall consult each such
Commerce, Defense, and State, the intelligence             committee with respect to such termination or
community and, in the discretion of the Secretary,         extension of that committee.
other Government departments and agencies. No
person serving on any such committee who is a                  (5) To facilitate the work of the technical advisory
representative of industry shall serve on such             committees, the Secretary, in conjunction with other
committee for more than four consecutive years.            departments and agencies participating in the
                                                           administration of this Act, shall disclose to each such
    (2) Technical advisory committees established          committee adequate information, consistent with
under paragraph (1) shall advise and assist the            national security, pertaining to the reasons for the
Secretary, the Secretary of Defense, and any other         export controls which are in effect or contemplated for
department, agency, or official of the Government of       the goods or technology with respect to which that
the United States to which the President delegates         committee furnishes advice.
authority under this Act, with respect to actions
designed to carry out the policy set forth in                  (6) Whenever a technical advisory committee
section 3(2)(A) of this Act. Such committees, where        certifies to the Secretary that goods or technology with
they have expertise in such matters, shall be consulted    respect to which such committee was appointed have
with respect to questions involving (A) technical          become available in fact, to controlled countries from
matters, (B) worldwide availability and actual             sources outside the United States, including countries
utilization of production technology, (C) licensing        which participate with the United States in multilateral
procedures which affect the level of export controls       export controls, in sufficient quantity and of
applicable to any goods or technology, (D) revisions       comparable quality so that requiring a validated
of the control list (as provided in subsection (c)(4)),    license for the export of such goods or technology
including proposed revisions of multilateral controls      would be ineffective in achieving the purpose set forth
in which the United States participates, (E) the           in subsection (a) of this section the technical advisory
issuance of regulations, and (F) any other questions       committee shall submit that certification to the
relating to actions designed to carry out the policy set   Congress at the same time the certification is made to
forth in Section 3(2)(A) of this Act. Nothing in this      the Secretary, together with the documentation for the
subsection shall prevent the Secretary or the Secretary    certification. The Secretary shall investigate the
of Defense from consulting, at any time, with any          foreign availability so certified and, not later than 90
person representing industry or the general public,        days after the certification is made, shall submit a
regardless of whether such person in a member of a         report to the technical advisory committee and the
technical advisory committee. Members of the               Congress stating that--
public shall be given a reasonable opportunity,
pursuant to regulations prescribed by the Secretary, to           (A) the Secretary has removed the requirement

Export Administration Regulations                                                                 January 23, 2013
Legal Authority                                                                                                 23

of a validated license for the export of the goods or          (2) Periodic meetings of high-level representatives
technology, on account of the foreign availability,         of participating governments for the purpose of
                                                            coordinating export control policies and issuing policy
        (B) the Secretary has recommended to the            guidance to the Committee.
President that negotiations be conducted to eliminate
the foreign availability, or                                    (3) Strengthened legal basis for each government's
                                                            export control system, including, as appropriate,
       (C) the Secretary has determined on the basis        increased penalties and statutes of limitations.
of the investigation that the foreign availability does
not exist.                                                      (4) Harmonization      of    export     control
                                                            documentation by the participating governments to
To the extent necessary, the report may be submitted        verify the movement of goods and technology subject
on a classified basis. In any case in which the             to controls by the Committee.
Secretary has recommended to the President that
negotiations be conducted to eliminate the foreign             (5) Improved procedures for coordination and
availability, the President shall actively pursue such      exchange of information concerning violations of the
negotiations with the governments of the appropriate        agreement of the Committee.
foreign countries. If, within 6 months after the
Secretary submits such report to the Congress, the              (6) Procedures for effective implementation of the
foreign availability has not been eliminated, the           agreement through uniform and consistent
Secretary may not, after the end of that 6-month            interpretations of export controls agreed to by the
period, require a validated license for the exports of      governments participating in the Committee.
the goods or technology involved. The President
may extend the 6-month period described in the                  (7) Coordination of national licensing and
preceding sentence for an additional period of 12           enforcement efforts by governments participating in
months if the President certifies to the Congress that      the Committee, including sufficient technical
the negotiations involved are progressing and that the      expertise to assess the licensing status of exports and
absence of the export control involved would prove          to ensure end-use verification.
detrimental to the national security of the United
States. After an agreement is reached with a country           (8) More effective procedures for enforcing export
pursuant to negotiations under this paragraph to            controls, including adequate training, resources, and
eliminate foreign availability of goods or technology,      authority for enforcement officers to investigate and
the Secretary may not require a validated license for       prevent illegal exports.
the export of such goods or technology to that country.
                                                               (9) Agreement to provide adequate resources to
(i) Multilateral Export Controls.-- Recognizing the         enhance the functioning of individual national export
ineffectiveness of unilateral controls and the              control systems and of the Committee.
importance of uniform enforcement measures to the
effectiveness of multilateral controls, the President           (10) Improved enforcement and compliance
shall enter into negotiations with the governments          with the agreement through elimination of
participating in the group known as the Coordinating        unnecessary export controls and maintenance of an
Committee (hereinafter in the subsection referred to as     effective control list.
the “Committee”) with a view toward accomplishing
the following objectives:                                       (11) Agreement to enhance cooperation among
                                                            members of the Committee in obtaining the agreement
    (1) Enhanced public understanding of the                of governments outside the Committee to restrict the
Committee's purpose and procedures, including               export of goods and technology on the International
publication of the list of items controlled for export by   Control List, to establish an ongoing mechanism in the
agreement of the Committee, together with all notes,        Committee        to     coordinate    planning      and
understandings, and other aspects of such agreement         implementation of export control measures related to
of the Committee, and all changes thereto.                  such agreements, and to remove items from the
                                                            International Control List if such items continue to be

Export Administration Regulations                                                                 January 23, 2013
Legal Authority                                                                                                    24

available to controlled countries or if the control of
such items no longer serves the common strategic                (1) Whenever there is reliable evidence, as
objectives of the members of the Committee.                 determined by the Secretary, that goods or technology,
                                                            which were exported subject to national security
For purposes of reviews of the International Control        controls under this section to a controlled country have
List, the President may include as advisors to the          been diverted to an unauthorized use or consignee in
United States delegation to the Committee                   violation of the conditions of an export license, the
representatives of industry who are knowledgeable           Secretary for as long as that diversion continues--
with respect to the items being reviewed.
                                                                   (A) shall deny all further exports, to or by the
(j) Commercial Agreements with Certain Countries.--         party or parties responsible for that diversion or who
                                                            conspired in that diversion, of any goods or
    (1) Any United States firm, enterprise, or other        technology subject to national security controls under
nongovernmental entity which, enters into an                this section regardless of whether such goods or
agreement with any agency of the government of a            technology are available from sources outside the
controlled country that calls for the encouragement of      United States; and
technical cooperation and is intended to result in the
export from the United States to the other party of                 (B) may take such additional actions under this
unpublished technical data of United States origin,         Act with respect to the party or parties referred to in
shall report to the Secretary the agreement with such       subparagraph (A) as the Secretary determines are
agency in sufficient detail.                                appropriate in the circumstances to deter the further
                                                            use of the previously exported goods or technology.
    (2) The provisions of paragraph (1) shall not apply
to colleges, universities, or other educational                 (2) As used in this subsection, the term
institutions.                                               “unauthorized use” means the use of United States
                                                            goods or technology in the design, production, or
(k) Negotiations with Other Countries.--             The    maintenance of any item on the United States
Secretary of State, in consultation with the Secretary      Munitions List, or the military use of any item on the
of Defense, the Secretary of Commerce, and the heads        International Control List of the Coordinating
of other appropriate departments and agencies, shall        Committee.
be responsible for conducting negotiations with other
countries, including those countries not participating      (m) Goods Containing Controlled Parts and
in the group known as the Coordinating Committee,           Components.-- Export controls may not be imposed
regarding their cooperation in restricting the export of    under this section, or under any other provision of law,
goods and technology in order to carry out the policy       on a good solely on the basis that the good contains
set forth in section 3(9) of this Act, as authorized by     parts or components subject to export controls under
subsection (a) of this section, including negotiations      this section if such parts or components--
with respect to which goods and technology should be
subject to multilaterally agreed export restrictions and       (1) are essential to the functioning of the good,
what conditions should apply for exceptions for those
restrictions.    In cases where such negotiations              (2) are customarily included in sales of the good in
produce agreements on export restrictions comparable        countries other than controlled countries, and
in practice to those maintained by the Coordinating
Committee, the Secretary shall treat exports, whether           (3) comprise 25 percent or less of the total value of
by individual or multiple licenses, to countries party to   the good, unless the good itself, if exported, would by
such agreements in the same manner as exports to            virtue of the functional characteristics of the good as a
members of the Coordinating Committee are treated,          whole make a significant contribution to the military
including the same manner as exports are treated            potential of a controlled country which would prove
under subsection (b)(2) of this section and Section         detrimental to the national security of the United
10(o) of this Act.                                          States.

(l) Diversion of Controlled Goods or Technology.--          (n) Security   Measures.--       The    Secretary    and

Export Administration Regulations                                                                  January 23, 2013
Legal Authority                                                                                                   25

Commissioner of Customs, consistent with their             the United States or to fulfill its declared international
authorities under section 12(a) of this Act, and in        obligations. The authority granted by this subsection
consultation with the Director of the Federal Bureau of    shall be exercised by the Secretary, in consultation
Investigation, shall provide advice and technical          with the Secretary of State, the Secretary of Defense,
assistance to persons engaged in the manufacture or        the Secretary of Agriculture, the Secretary of the
handling of goods or technology subject to export          Treasury, the United States Trade Representative, and
controls under this section to develop security systems    such other departments and agencies as the Secretary
to prevent violations or evasions of those export          considers appropriate, and shall be implemented by
controls.                                                  means of export licenses issued by the Secretary.

(o) Recordkeeping.-- The Secretary, the Secretary of           (2) Any export control imposed under this section
Defense, and any other department or agency                shall apply to any transaction or activity undertaken
consulted in connection with a license application         with the intent to evade that export control, even if that
under this Act or a revision of a list of goods or         export control would not otherwise apply to that
technology subject to export controls under this Act,      transaction or activity.
shall make and keep records of their respective advice,
recommendations, or decisions in connection with any           (3) Export controls maintained for foreign policy
such license application or revision, including the        purposes shall expire on December 31, 1979, or one
factual and analytical basis of the advice,                year after imposition, whichever is later, unless
recommendations, or decisions.                             extended by the President in accordance with
                                                           subsections (b) and (f). Any such extension shall not
(p) National Security Control Office.-- To assist in       be for a period of more than one year.
carrying out the policy and other authorities and
responsibilities of the Secretary of Defense under this        (4) Whenever the Secretary denies any export
section, there is established in the Department of         license under this subsection, the Secretary shall
Defense, a National Security Control Office under the      specify in the notice to the applicant of the denial, of
direction of the Under Secretary of Defense for Policy.    such license that the license was denied under the
The Secretary of Defense may delegate to that office       authority contained in this subsection, and the reasons
such of those authorities and responsibilities, together   for such denial with reference to the criteria set forth
with such ancillary functions, as the Secretary of         in subsection (b) of this section. The Secretary shall
Defense considers appropriate.                             also include in such notice what, if any, modifications
                                                           in or restrictions on the goods or technology for which
(q) Exclusion for Agricultural Commodities.-- This         the license was sought would allow such export to be
section does not authorize export controls on              compatible with controls implemented under this
agricultural commodities, including fats, oils, and        section, or the Secretary shall indicate in such notice
animal hides and skins.                                    which officers and employees of the Department of
                                                           Commerce who are familiar with the application will
                                                           be made reasonably available to the applicant for
              Section 6.                                   consultation with regard to such modifications or
     FOREIGN POLICY CONTROLS                               restrictions, if appropriate.

                                                               (5) In accordance with the provisions of section 10
(a) Authority.--                                           of this Act, the Secretary of State shall have the right
                                                           to review any export license application under this
    (1) In order to carry out the policy set forth in      section which the Secretary of State requests to
paragraph (2)(B), (7), (8), or (13) of section 3 of this   review.
Act, the President may prohibit or curtail the
exportation of any goods, technology, or other                 (6) Before imposing, expanding, or extending
information subject to the jurisdiction of the United      export controls under this section on exports to a
States or exported by any person subject to the            country which can use goods, technology, or
jurisdiction of the United States, to the extent           information available from foreign sources and so
necessary to further significantly the foreign policy of   incur little or no economic costs as a result of the

Export Administration Regulations                                                                  January 23, 2013
Legal Authority                                                                                                   26

controls, the President should, through diplomatic
means, employ alternatives to export controls which             (2) With respect to those export controls in effect
offer opportunities of distinguishing the United States     under this section on the date of the enactment of the
from, and expressing the displeasure of the United          Export Administration Amendments Act of 1985 [July
States with, the specific actions of that country in        12, 1985], the President, in determining whether to
response to which the controls are proposed. Such           extend those controls, as required by subsection (a) (3)
alternatives include private discussions with foreign       of this section, shall consider the criteria set forth in
leaders, public statements in situations where private      paragraph (1) of this subsection and shall consider the
diplomacy is unavailable or not effective, withdrawal       foreign policy consequences of modifying the export
of ambassadors, and reduction of the size of the            controls.
diplomatic staff that the country involved is permitted
to have in the United States.                               (c) Consultation with Industry.-- The Secretary in
                                                            every possible instance shall consult with and seek
(b) Criteria.--                                             advice from affected United States industries and
                                                            appropriate advisory committees established under
   (1) Subject to paragraph (2) of this subsection, the     section 135 of the Trade Act of 1974 [19 U.S.C. 2155]
President may impose, extend, or expand export              before imposing any export control under this section.
controls under this section only if the President           Such consultation and advice shall be with respect to
determines that--                                           the criteria set forth in subsection (b) (1) and such
                                                            other matters as the Secretary considers appropriate.
        (A) such controls are likely to achieve the
intended foreign policy purpose, in light of other          (d) Consultation with Other Countries.--           When
factors, including the availability from other countries    imposing export controls under this section, the
of the goods or technology proposed for such controls,      President shall, at the earliest appropriate opportunity,
and that foreign policy purpose cannot be achieved          consult with the countries with which the United
through negotiations or other alternative means;            States maintains export controls cooperatively, and
                                                            with such other countries as the President considers
       (B) the proposed controls are compatible with        appropriate with respect to the criteria set forth in
the foreign policy objectives of the United States and      subsection (b)(1) and such other matters as the
with overall United States policy toward the country to     President considers appropriate.
which exports are to be subject to the proposed
controls;                                                   (e) Alternative Means.-- Before resorting to the
                                                            imposition of export controls under this section, the
        (C) the reaction of other countries to the          President shall determine that reasonable efforts have
imposition, extension, or expansion of such export          been made to achieve the purposes of the controls
controls by the United States is not likely to render the   through negotiations or other alternative means.
controls ineffective in achieving the intended foreign
policy purpose or to be counter- productive to United       (f) Consultation with the Congress.--
States foreign policy interests;
                                                               (1) The President may impose or expand export
       (D) the effect of the proposed controls on the       controls under this section, or extend such controls as
export performance of the United States, the                required by subsection (a)(3) of this section, only after
competitive position of the United States in the            consultation with the Congress, including the
international economy, the international reputation of      Committee on International Relations of the House of
the United States as a supplier of goods and                Representatives and the Committee on Banking,
technology, or on the economic well-being of                Housing, and Urban Affairs of the Senate.
individual United States companies and their
employees and communities does not exceed the                  (2) The President may not impose, expand, or
benefit to United States foreign policy objectives; and     extend export controls under this section until the
                                                            President has submitted to the Congress a report--
       (E) the United States has the ability to enforce
the proposed controls effectively.                                 (A) specifying the purpose of the controls;

Export Administration Regulations                                                                   January 23, 2013
Legal Authority                                                                                                      27


       (B) specifying the determinations of the                    (5) In addition to any written report required under
President (or, in the case of those export controls            this section, the Secretary, not less frequently than
described in subsection (b)(2), the considerations of          annually, shall present in oral testimony before the
the President) with respect to each of the criteria set        Committee on Banking, Housing, and Urban Affairs
forth in subsection (b)(1), the bases for such                 of the Senate and the Committee on International
determinations (or considerations), and any possible           Relations of the House of Representatives a report on
adverse foreign policy consequences of the controls;           policies and actions taken by the Government to carry
                                                               out the provisions of this section.
       (C) describing the nature, the subjects, and the
results of, or the plans for, the consultation with            (g) Exclusion for Medicine and Medical Supplies and
industry pursuant to subsection (c) and with other             for Certain Food Exports.-- This section does not
countries pursuant to subsection (d);                          authorize export controls on medicine or medical
                                                               supplies. This section also does not authorize export
        (D) specifying the nature and results of any           controls on donations of goods (including but not
alternative means attempted under subsection (e), or           limited to, food, educational materials, seeds and hand
the reasons for imposing, expanding, or extending the          tools, medicines and medical supplies, water resources
controls without attempting any such alternative               equipment, clothing and shelter materials, and basic
means; and                                                     household supplies) that are intended to meet basic
                                                               human needs. Before export controls on food are
        (E) describing the availability from other             imposed, expanded, or extended under this section, the
countries of goods or technology comparable to the             Secretary shall notify the Secretary of State in the case
goods or technology subject to the proposed export             of export controls applicable with respect to any
controls, and describing the nature and results of the         developed country and shall notify the Administrator
efforts made pursuant to subsection (h) to secure the          of the Agency for International Development in the
cooperation of foreign governments in controlling the          case of export controls applicable with respect to any
foreign availability of such comparable goods or               developing country. The Secretary of State with
technology.                                                    respect to developed countries, and the Administrator
                                                               with respect to developing countries, shall determine
Such report shall also indicate how such controls will         whether the proposed export controls on food would
further significantly the foreign policy of the United         cause measurable malnutrition and shall inform the
States or will further its declared international              Secretary of that determination. If the Secretary is
obligations.                                                   informed that the proposed export controls on food
                                                               would cause measurable malnutrition, then those
    (3) To the extent necessary to further the                 controls may not be imposed, expanded, or extended,
effectiveness of the export controls, portions of a            as the case may be, unless the President determines
report required by paragraph (2) may be submitted to           that those controls are necessary to protect the national
the Congress on a classified basis, and shall be subject       security interests of the United States, or unless the
to the provisions of section 12(c) of this Act.2               President determines that arrangements are
                                                               insufficient to ensure that the food will reach those
    (4) In the case of export controls under this section      most in need. Each such determination by the
which prohibit or curtail the export of any agricultural       Secretary of State or the Administrator of the Agency
commodity, a report submitted pursuant to paragraph            for International Development, and any such
(2) shall be deemed to be the report required by               determination by the President, shall be reported to the
section 7(g)(3)(A) of this Act.                                Congress, together with a statement of the reasons for
                                                               that determination. It is the intent of Congress that
         2                                                     the President not impose export controls under this
               Pub. L. 104-316 128(c) (110 Stat. 3841)         section on any goods or technology if he determines
amended subsection (f)(3) by striking the second sentence      that the principal effect of the export of such goods or
which provided for the report to be submitted to the General   technology would be to help meet basic human needs.
Accounting Office for the purpose of assessing compliance
                                                               This subsection shall not be construed to prohibit the
with this subsection.
                                                               President from imposing restrictions on the export of

Export Administration Regulations                                                                     January 23, 2013
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medicine or medical supplies, or of food under the            export controls is available in sufficient quantity and
International Emergency Economic Powers Act [50               comparable quality from sources outside the United
U.S.C. 1701 et seq.]. This subsection shall not apply         States to countries subject to the export controls so
to any export control on medicine, medical supplies,          that denial of an export license would be ineffective in
or food, except for donations, which is in effect on the      achieving purposes of the controls, then the Secretary
date of the enactment of the Export Administration            shall, during the period of such foreign availability,
Amendments Act of 1985 [July 12, 1985].                       approve any license application which is required for
Notwithstanding the preceding provisions of this              the export of the good or technology and which meets
subsection, the President may impose export controls          all requirements for such a license. The Secretary
under this section on medicine, medical supplies,             shall remove the good or technology from the list
food, and donations of goods in order to carry out the        established pursuant to subsection (l) of this section if
policy set forth in paragraph (13) of Section 3 of this       the Secretary determines that such action is
Act.3                                                         appropriate.

(h) Foreign Availability.--                                       (4) In making a determination of foreign
                                                              availability under paragraph (3) of this subsection, the
    (1) In applying export controls under this section,       Secretary shall follow the procedures set forth in
the President shall take all feasible steps to initiate and   section 5 (f)(3) for this Act.
conclude negotiations with appropriate foreign
governments for the purpose of securing the                   (i) International Obligations.-- The provisions of
cooperation of such foreign governments in                    subsections (b), (c), (d), (e), (g) and (h) shall not apply
controlling the export to countries and consignees to         in any case in which the President exercises the
which the United States export controls apply of any          authority contained in this section to impose export
goods or technology comparable to goods or                    controls, or to approve or deny export license
technology controlled under this section.                     applications, in order to fulfill obligations of the
                                                              United States pursuant to treaties to which the United
    (2) Before extending any export control pursuant          States is a party or pursuant to other international
to subsection (a)(3) of this section, the President shall     agreements.
evaluate the results of his actions under paragraph (1)
of this subsection and shall include the results of the       (j) Countries Supporting International Terrorism.--
evaluation in his report to the Congress pursuant to
subsection (f) of this section.                                  (1) A validated license shall be required for the
                                                              export of goods or technology to a country if the
   (3) If, within 6 months after the date on which            Secretary of State has made the following
export controls under this section are imposed or             determinations:
expanded, or within 6 months after the date of the
enactment of the Export Administration Amendments                     (A) The government of such country has
Act of 1985 in the case of export controls in effect on       repeatedly provided support for acts of international
such date of enactment, the President's efforts under         terrorism.
paragraph (l) are not successful in securing the
cooperation of foreign governments described in                       (B) The export of such goods or technology
paragraph (1) with respect to those export controls, the      could make a significant contribution to the military
Secretary shall thereafter take into account the foreign      potential of such country, including its military
availability of the goods or technology subject to the        logistics capability, or could enhance the ability of
export controls.      If the Secretary affirmatively          such country to support acts of international terrorism.
determines that a good or technology subject to the
                                                                  (2) The Secretary and the Secretary of State shall
      3                                                       notify the Committee on International Relations of the
         Pub. L. 105-277 1422(b)(7) (112 Stat. 2681-793)      House of Representatives and the Committee on
amended references to the Director of the United States       Banking, Housing, and Urban Affairs and the
International Development Cooperation Agency to the
                                                              Committee on Foreign Relations of the Senate at least
Administrator of the Agency for International Development.
                                                              30 days before issuing any validated license required

Export Administration Regulations                                                                      January 23, 2013
Legal Authority                                                                                                   29

by paragraph (1).                                          international organization to which the export or
                                                           transfer is proposed to be made needs the goods or
   (3) Each determination of the Secretary of State        services which are the subject of such export or
under paragraph (1)(A), including each determination       transfer and a description of the manner in which such
in effect on the date of the enactment of the              country of organization intends to use such articles,
Antiterrorism and Arms Export Amendments Act of            services, or design and construction services;
1989 [December 12, 1989], shall be published in the
Federal Register.                                                 (C) the reasons why the proposed export or
                                                           transfer is in the national interest of the United States;
    (4) A determination made by the Secretary of State
under paragraph (1)(A) may not be rescinded unless                (D) an analysis of the impact of the proposed
the President submits to the Speaker of the House of       export or transfer on the military capabilities of the
Representatives and the chairman of the Committee          foreign country or international organization to which
on Banking, Housing, and Urban Affairs and the             such export or transfer would be made;
chairman of the Committee on Foreign Relations of
the Senate--                                                       (E) an analysis of the manner in which the
                                                           proposed export would affect the relative military
        (A) before the proposed rescission would take      strengths of countries in the region to which the goods
effect, a report certifying that--                         or services which are the subject of such export would
                                                           be delivered and whether other countries in the region
           (i) there has been a fundamental change         have comparable kinds and amounts of articles,
   in the leadership and policies of the government of     services, or design and construction services; and
   the country concerned;
                                                                  (F) an analysis of the impact of the proposed
           (ii) that government is not supporting          export or transfer on the United States relations with
   acts of international terrorism; and                    the countries in the region to which the goods or
                                                           services which are the subject of such export would be
          (iii)     that government has provided           delivered.4
   assurances that it will not support acts of
   international terrorism in the future; or               (k) Negotiations with Other Countries.--

        (B) at least 45 days before the proposed               (1) Countries participating in certain agreements.--
rescission would take effect, a report justifying the      The Secretary of State, in consultation with the
rescission and certifying that--                           Secretary, the Secretary of Defense, and the heads of
                                                           other appropriate departments and agencies, shall be
          (i) the government concerned has not             responsible for conducting negotiations with those
   provided any support for international terrorism        countries participating in the groups known as the
   during the preceding 6-month period; and                Coordinating Committee, the Missile Technology
                                                           Control Regime, the Australia Group, and the Nuclear
          (ii) the government concerned has provided       Suppliers' Group, regarding their cooperation in
   assurances that it will not support acts of             restricting the export of goods and technology in order
   international terrorism in the future.                  to carry out--

    (5) The Secretary and the Secretary of State shall            (A) the policy set forth in section 3(2)(B) of this
include in the notification required by paragraph (2)--    Act [50 U.S.C. app. 2402(2)(B)] and

       (A) a detailed description of the goods or                  (B) United States policy opposing the
services to be offered, including a brief description of   proliferation of chemical, biological, nuclear, and
the capabilities of any article for which a license to
export is sought;                                            4
                                                                 Pub. L. 103-236, 736 (108 Stat. 506), added
                                                           subsection (j)(5).
       (B) the reasons why the foreign country or

Export Administration Regulations                                                                  January 23, 2013
Legal Authority                                                                                                     30

other weapons and their delivery systems, and                dual use goods and technology on the MTCR Annex;
effectively restricting the export of dual use               and
components of such weapons and their delivery
systems, in accordance with this subsection and                      (B) may include, as part of the control list
subsections (a) and (l).                                     established under this section, goods and technology
                                                             that would provide a direct and immediate impact on
Such negotiations shall cover, among other issues,           the development of missile delivery systems and are
which goods and technology should be subject to              not included in the MTCR Annex but which the
multilaterally agreed export restrictions, and the           United States is proposing to the other MTCR
implementation of the restrictions consistent with the       adherents to have included in the MTCR Annex.
principles identified in section 5(b)(2)(C) of this Act
[50 U.S.C. app. 2402(b)(2)(C)].                                  (2) Requirement     of  Individual      Validated
                                                             Licenses.-- The Secretary shall require an individual
    (2) Other Countries.-- The Secretary of State, in        validated license for--
consultation with the Secretary, the Secretary of
Defense, and the heads of other appropriate                          (A) any export of goods or technology on the
departments and agencies, shall be responsible for           list established under paragraph (1) to any country;
conducting negotiations with countries and groups of         and
countries not referred to in paragraph (1) regarding
their cooperation in restricting the export of goods and            (B) any export of goods or technology that the
technology consistent with purposes set forth in             exporter knows is destined for a project or facility for
paragraph (1). In cases where such negotiations              the design, development, or manufacture of a missile
produce agreements on export restrictions that the           in a country that is not an MTCR adherent.
Secretary, in consultation with the Secretary of State
and the Secretary of Defense, determines to be                  (3) Policy of Denial of Licenses.--
consistent with the principles identified in section
5(b)(2)(C) of this Act [50 U.S.C. app. 2404(b)(2)(C)],              (A) Licenses under paragraph (2) should in
the Secretary may treat exports, whether by individual       general be denied if the ultimate consignee of the
or multiple licenses, to countries party to such             goods or technology is a facility in a country that is not
agreements in the same manner as exports are treated         an adherent to the Missile Technology Control
to countries that are MTCR adherents.                        Regime and the facility is designed to develop or build
                                                             missiles.
    (3) Review of Determinations.-- The Secretary
shall annually review any determination under                       (B) Licenses under paragraph (2) shall be
paragraph (2) with respect to a country. For each            denied if the ultimate consignee of the goods or
such country which the Secretary determines is not           technology is a facility in a country the government of
meeting the requirements of an effective export              which has been determined under subsection (j) to
control system in accordance with section 5(b)(2)(C)         have repeatedly provided support for acts of
[50 U.S.C. app. 2404(b)(2)(C)], the Secretary shall          international terrorism.
restrict or eliminate any preferential licensing
treatment for exports to that country provided under                (4) Consultation with Other Departments.--
this subsection.
                                                                    (A) A determination of the Secretary to
(l) Missile Technology.--                                    approve an export license under paragraph (2) for the
                                                             export of goods or technology to a country of concern
   (1) Determination of Controlled Items.-- The              regarding missile proliferation may be made only after
Secretary, in consultation with the Secretary of State,      consultation with the Secretary of Defense and the
the Secretary of Defense, and the heads of other             Secretary of State for a period of 20 days. The
appropriate departments and agencies--                       countries of concern referred to in the preceding
                                                             sentence shall be maintained on a classified list by the
       (A) shall establish and maintain, as part of the      Secretary of State, in consultation with the Secretary
control list established under this section, a list of all   and the Secretary of Defense.

Export Administration Regulations                                                                    January 23, 2013
Legal Authority                                                                                                   31

                                                          section, a list of goods and technology that would
        (B) Should the Secretary of Defense disagree      directly and substantially assist a foreign government
with the determination of the Secretary to approve an     or group in acquiring the capability to develop,
export license to which subparagraph (A) applies, the     produce, stockpile, or deliver chemical or biological
Secretary of Defense shall so notify the Secretary        weapons, the licensing of which would be effective in
within the 20 days provided for consultation on the       barring acquisition or enhancement of such capability.
determination. The Secretary of Defense shall at the
same time submit the matter to the President for             (2) Requirement for Validated Licenses.-- The
resolution of the dispute. The Secretary shall also       Secretary shall require a validated license for any
submit the Secretary's recommendation to the              export of goods or technology on the list established
President on the license application.                     under paragraph (1) to any country of concern.

       (C) The President shall approve or disapprove         (3) Countries of Concern.-- For purposes of
the export license application within 20 days after       paragraph (2), the term “country of concern” means
receiving the submission of the Secretary of Defense      any country other than--
under subparagraph (B).
                                                                 (A) a country with whose government the
        (D) Should the Secretary of Defense fail to       United States has entered into a bilateral or
notify the Secretary within the time period prescribed    multilateral arrangement for the control of goods or
in subparagraph (B), the Secretary may approve the        technology on the list established under paragraph (1);
license application without awaiting the notification     and
by the Secretary of Defense. Should the President
fail to notify the Secretary of his decision on the              (B) such other countries as the Secretary of
export license application within the time period         State, in consultation with the Secretary and the
prescribed in subparagraph (C), the Secretary may         Secretary of Defense, shall designate consistent with
approve the license application without awaiting the      the purposes of the Chemical and Biological Weapons
President's decision on the license application.          Control and Warfare Elimination Act of 1991.5

       (E) Within 10 days after an export license is      (n) Crime Control Instruments.--
issued under this subsection, the Secretary shall
provide to the Secretary of Defense and the Secretary        (1) Crime control and detection instruments and
of State the license application and accompanying         equipment shall be approved for export by the
documents issued to the applicant, to the extent that     Secretary only pursuant to a validated export license.
the relevant Secretary indicates the need to receive      Notwithstanding any other provision of this Act--
such application and documents.
                                                                  (A) any determination of the Secretary of what
    (5) Information Sharing.-- The Secretary shall        goods or technology shall be included on the list
establish a procedure for information sharing with        established pursuant to subsection (l) of this section as
appropriate officials of the intelligence community, as   a result of the export restrictions imposed by this
determined by the Director of Central Intelligence,       subsection shall be made with the concurrence of the
and other appropriate Government agencies, that will
ensure effective monitoring of transfers of MTCR
equipment or technology and other missile                              5
                                                                           Chemical and Biological Weapons Control
technology.                                               and Warfare Elimination Act of 1991, Pub. L. No. 102-182,
                                                          304(b), 105 Stat. 1245, 1246-1247, added subsection (m).
(m)    Chemical and Biological Weapons.--                 Section 304(a) of the Act directs the President to Ause the
                                                          authorities of the Export Administration Act of 1979 to
   (1) Establishment of List.-- The Secretary, in         control the export of those goods and technologies that the
consultation with the Secretary of State, the Secretary   President determines would assist the government of any
of Defense, and the heads of other appropriate            foreign country in acquiring the capability to develop,
                                                          produce, stockpile, deliver or use chemical or biological
departments and agencies, shall establish and
                                                          weapons. (22 U.S.C. 5603)).
maintain, as part of the list maintained under this

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Legal Authority                                                                                                    32

Secretary of State, and
                                                                 (1) in performance of a contract or agreement
        (B) any determination of the Secretary to            entered into before the date on which the President
approve or deny an export license application to             reports to the Congress, pursuant to subsection (f) of
export crime control or detection instruments or             this section, his intention to impose controls on the
equipment shall be made in concurrence with the              export or reexport of such goods, technology, or other
recommendations of the Secretary of State submitted          information, or
to the Secretary with respect to the application
pursuant to section 10(e) of this Act, except that, if the       (2) under a validated license or other authorization
Secretary does not agree with the Secretary of State         issued under this Act, unless and until the President
with respect to any determination under subparagraph         determines and certifies to the Congress that--
(A) or (B), the matter shall be referred to the President
for resolution.                                                      (A) a breach of the peace poses a serious and
                                                             direct threat to the strategic interest of the United
    (2) The provisions of this subsection shall not          States,
apply with respect to exports to countries which are
members of the North Atlantic Treaty Organizations                   (B) the prohibition or curtailment of such
or to Japan, Australia, or New Zealand, or to such           contracts, agreements, licenses, or authorizations will
other countries as the President shall designate             be instrumental in remedying the situation posing the
consistent with the purposes of this subsection and          direct threat, and
section 502B of the Foreign Assistance Act of 1961
[22 U.S.C. 2304].                                                   (C) the export controls will continue only so
                                                             long as the direct threat persists.
(o) Control List.-- The Secretary shall establish and
maintain, as part of the control list, a list of any goods   (q) Extension of Certain Controls.-- Those export
or technology subject to export controls under this          controls imposed under this section with respect to
section, and the countries to which such controls            South Africa which were in effect on February 28,
apply. The Secretary shall clearly identify on the           1982, and ceased to be effective on March 1, 1982,
control list which goods or technology, and which            September 15, 1982, or January 20, 1983, shall
countries or destinations, are subject to which types of     become effective on the date of the enactment of this
controls under this section. Such list shall consist of      subsection [July 12, 1985], and shall remain in effect
goods and technology identified by the Secretary of          until 1 year after such date of enactment. At the end
State, with the concurrence of the Secretary. If the         of that 1-year period, any of those controls made
Secretary and the Secretary of State are unable to           effective by this subsection may be extended by the
agree on the list, the matter shall be referred to the       President in accordance with subsections (b) and (f) of
President. Such list shall be reviewed not less              this section.
frequently than every three years in the case of
controls     maintained cooperatively with other             (r) Expanded Authority to Impose Controls.--
countries, and annually in the case of all other
controls, for the purpose of making such revisions as            (1) In any case in which the President determines
are necessary in order to carry out this section.            that it is necessary to impose controls under this
During the course of such review, an assessment shall        section without any limitation contained in subsection
be made periodically of the availability from sources        (c), (d), (e), (g), (h), or (p), of this section, the
outside the United States, or any of its territories or      President may impose those controls only if the
possessions, of goods or technology comparable to            President submits that determination to the Congress,
those controlled for export from the United States           together with a report pursuant to subsection (f) of this
under this section.                                          section with respect to the proposed controls, and only
                                                             if a law is enacted authorizing the imposition of those
(p) Effect on Existing Contracts and Licenses.-- The         controls.     If a joint resolution authorizing the
President may not, under this section, prohibit or           imposition of those controls is introduced in either
curtail the export or reexport of goods, technology, or      House of Congress within 30 days after the Congress
their information--                                          receives the determination and report of the President,

Export Administration Regulations                                                                   January 23, 2013
Legal Authority                                                                                                    33

that joint resolution shall be referred to the Committee    section 3(2)(C) of this Act, the President may prohibit
on Banking, Housing, and Urban Affairs of the Senate        or curtail the export of any goods subject to the
and to the appropriate committee of the House of            jurisdiction of the United States or exported by any
Representatives. If either such committee has not           person subject to the jurisdiction of the United States.
reported the joint resolution at the end of 30 days after   In curtailing exports to carry out the policy set forth in
its referral, the committee shall be discharged from        section 3(2)(C) of this Act, the President shall allocate
further consideration of the joint resolution.              a portion of export licenses on the basis of factors
                                                            other than a prior history of exportation. Such factors
    (2) For purposes of this subsection, the term “joint    shall include the extent to which a country engages in
resolution” means a joint resolution the matter after       equitable trade practices with respect to United States
the resolving clause of which is as follows: “That the      goods and treats the United States equitably in times
Congress, having received on                         , a    of short supply.
determination of the President under Section 6(r)(1) of
the Export Administration Act of 1979 with respect to           (2) Upon imposing quantitative restrictions on
the export controls which are set forth in the report       exports of any goods to carry out the policy set forth in
submitted to the Congress with that determination,          section 3(2)(C) of this Act, the Secretary shall include
authorizes the President to impose those export             in a notice published in the Federal Register with
controls.”, with the date of the receipt of the             respect to such restrictions an invitation to all
determination and report inserted in the blank.             interested parties to submit written comments within
                                                            15 days from the date of publication on the impact of
    (3) In the computation of the periods of 30 days        such restrictions and the method of licensing used to
referred to in paragraph (1), there shall be excluded the   implement
days on which either House of Congress is not in            them.
session because of adjournment of more than 3 days to
a day certain or because of an adjournment of the              (3) In imposing export controls under this section,
Congress sine die.                                          the President's authority shall include, but not be
                                                            limited to, the imposition of export license fees.
(s) Spare Parts.--
                                                            (b) Monitoring.--
   (1) At the same time as the President imposes or
expands export controls under this section, the                 (1) In order to carry out the policy set forth in
President shall determine whether such export               section 3(2)(C) of this Act, the Secretary shall monitor
controls will apply to replacement parts for parts in       exports, and contracts for exports, of any good (other
goods subject to such export controls.                      than a commodity which is subject to the reporting
                                                            requirements of section 812 of the Agricultural Act of
    (2) With respect to export controls imposed under       1970 [7 U.S.C. 612c-3]) when the volume of such
this section before the date of the enactment of this       exports in relation to domestic supply contributes, or
subsection [August 23, 1988], an individual validated       may contribute, to an increase in domestic prices or a
export license shall not be required for replacement        domestic shortage, and such price increase or shortage
parts which are exported to replace on a one-for-one        has, or may have, a serious adverse impact on the
basis parts that were in a good that was lawfully           economy or any sector thereof. Any such monitoring
exported from the United States, unless the President       shall commence at a time adequate to assure that (c)
determines that such a license should be required for       the monitoring will result in a data base sufficient to
such parts.                                                 enable policies to be developed, in accordance with
                                                            section 3(2)(C) of this Act, to mitigate a short supply
                                                            situation or serious inflationary price rise or, if export
               Section 7.                                   controls are needed, to permit imposition of such
       SHORT SUPPLY CONTROLS                                controls in a timely manner. Information which the
                                                            Secretary requires to be furnished in effecting such
(a) Authority.--                                            monitoring shall be confidential, except as provided in
                                                            paragraph (2) of this subsection.
   (1) In order to carry out the policy set forth in

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    (2) The results of such monitoring shall, to the               (B) include the Schedule B number of the
extent practicable, be aggregated and included in           material as set forth in the Statistical Classification of
weekly reports setting forth, with respect to each item     Domestic and Foreign Commodities Exported from
monitored, actual and anticipated exports, the              the United States,
destination by country, and the domestic and
worldwide price, supply, and demand. Such reports                  (C) indicate whether the petition is requesting
may be made monthly if the Secretary determines that        that controls or monitoring, or both, be imposed with
there is insufficient information to justify weekly         respect to the exportation of such material, and
reports.
                                                                    (D) provide that interested persons shall have a
    (3) The Secretary shall consult with the Secretary      period of 30 days beginning on the date of publication
of Energy to determine whether monitoring or export         of such notice to submit to the Secretary written data,
controls under this section are warranted with respect      views, or arguments, with or without opportunity for
to exports of facilities, machinery, or equipment           oral presentation, with respect to the matter involved.
normally and principally used, or intended to be used,      At the request of the petitioner or any other entity
in the production, conversion, or transportation of         described in paragraph (1)(A) with respect to the
fuels and energy (except nuclear energy), including,        material which is the subject of the petition, or at the
but not limited to, drilling rigs, platforms, and           request of any entity representative of producers or
equipment; petroleum refineries, natural gas                exporters of such material, the Secretary shall conduct
processing, liquefaction, and gasification plants;          public hearings with respect to the subject of the
facilities for production of synthetic natural gas or       petition, in which case the 30-day period may be
synthetic crude oil; oil and gas pipelines, pumping         extended to 45 days.
stations, and associated equipment; and vessels for
transporting oil, gas, coal, and other fuels.                   (3) (A) Within 45 days after the end of the 30- or
                                                            45-day period described in paragraph (2), as the case
(c) Petitions for Monitoring or Controls.--                 may be, the Secretary shall determine whether to
                                                            impose monitoring or controls, or both, on the export
    (1) (A) Any entity, including a trade association,      of the material that is the subject of the petition in
firm, or certified or recognized union or group of          order to carry out the policy set forth in section
workers, that is representative of an industry or a         3(2)(C) of this Act. In making such determination,
substantial segment of an industry that processes           the Secretary shall determine whether--
metallic materials capable of being recycled may
transmit a written petition to the Secretary requesting                (i) there has been a significant increase, in
the monitoring of exports or the imposition of export          relation to a specific period of time, in exports of
controls, or both, with respect to any such material, in       such material in relation to domestic supply and
order to carry out the policy set forth in section             demand;
3(2)(C) of this Act.
                                                                      (ii) there has been a significant increase in
        (B) Each petition shall be in such form as the         domestic price of such material or a domestic
Secretary shall prescribe and shall contain information        shortage of such material relative to demand;
in support of the action requested. The petition shall
include any information reasonably available to the                   (iii) exports of such material are as
petitioner indicating that each of the criteria set forth      important as any other cause of a domestic price
in paragraph (3)(A) of this subsection is satisfied.           increase or shortage relative to demand found
                                                               under clause (ii);
   (2) Within 15 days after receipt of any petition
described in paragraph (1), the Secretary shall publish                (iv) a domestic price increase or
a notice in the Federal Register. The notice shall             shortage relative to demand found under clause (ii)
                                                               has significantly adversely affected or may
       (A) include the name of the material that is the        significantly adversely affect the national
subject of the petition,                                       economy or any sector thereof, including a
                                                               domestic industry; and

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           (v) monitoring or controls, or both, are                  (A) the failure to take such temporary action
   necessary in order to carry out the policy set forth      would result in irreparable harm to the entity filing the
   in section 3(2)(C) of this Act.                           petition, or to the national economy or segment
                                                             thereof, including a domestic industry, and
        (B) The Secretary shall publish in the Federal
Register a detailed statement of the reasons for the                (B) the Secretary considers such action to be
Secretary's determination pursuant to subparagraph           necessary to carry out the policy set forth in Section
(A) of whether to impose monitoring or controls, or          3(2)(C) of this Act.
both, including the findings of fact in support of that
determination.                                                   (9) The authority under this subsection shall not be
                                                             construed to affect the authority of the Secretary under
    (4) Within 15 days after making a determination          any other provision of this Act, except that if the
under paragraph (3) to impose monitoring or controls         Secretary determines, on the Secretary's own
on the export of a material, the Secretary shall publish     initiative, to impose monitoring or controls, or both,
in the Federal Register proposed regulations with            on the export of metallic materials capable of being
respect to such monitoring or controls. Within 30 days       recycled, under the authority of this section, the
after the publication of such proposed regulations, and      Secretary shall publish the reasons for such action in
after considering any public comments on the                 accordance with paragraph (3)(A) and (B) of this
proposed regulations, the Secretary shall publish and        subsection.
implement final regulations with respect to such
monitoring or controls.                                          (10) Nothing contained in this subsection shall
                                                             be construed to preclude submission on a confidential
   (5) For purposes of publishing notices in the             basis to the Secretary of information relevant to a
Federal Register and scheduling public hearings              decision to impose or remove monitoring or controls
pursuant to this subsection, the Secretary may               under the authority of this Act, or to preclude
consolidate petitions, and responses to such petitions,      consideration of such information by the Secretary in
which involve the same or related materials.                 reaching decisions required under this subsection.
                                                             The provisions of this paragraph shall not be construed
   (6) If a petition with respect to a particular material   to affect the applicability of section 552(b) of title 5,
or group of materials has been considered in                 United States Code.
accordance with all the procedures prescribed in this
subsection, the Secretary may determine, in the              (d) Domestically Produced Crude Oil.--
absence of significantly changed circumstances, that
any other petition with respect to the same material or          (1) Notwithstanding any other provision of this
group of materials which is filed within 6 months after      Act [50 U.S.C. app. 2401-2420] and notwithstanding
the consideration of the prior petition has been             subsection (u) of section 28 of the Mineral Leasing
completed does not merit complete consideration              Act of 1920 (30 U.S.C. 185), no domestically
under this subsection.                                       produced crude oil transported by pipeline over
                                                             right-of-way granted pursuant to section 203 of the
    (7) The procedures and time limits set forth in this     TransAlaska Pipeline Authorization Act (43 U.S.C.
subsection with respect to a petition filed under this       1652) (except any such crude oil which (A) is
subsection shall take precedence over any review             exported to an adjacent foreign country to be refined
undertaken at the initiative of the Secretary with           and consumed therein in exchange for the same
respect to the same subject as that of the petition.         quantity of crude oil being exported from that country
                                                             to the United States; such exchange must result
   (8) The Secretary may impose monitoring or                through convenience or increased efficiency of
controls on a temporary basis, on the export of a            transportation in lower prices for consumers of
metallic material after a petition is filed under            petroleum products in the United States as described
paragraph (1)(A) with respect to that material but           in paragraph (2)(A)(ii) of this subsection, (B) is
before the Secretary makes a determination under             temporarily exported for convenience or increased
paragraph (3) with respect to that material only if--        efficiency of transportation across parts of an adjacent

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foreign country and reenters the United States or (C) is     within 60 days after receiving that recommendation,
transported to Canada, to be consumed therein, in            agrees to a joint resolution which approves such
amounts not to exceed an annual average of 50,000            exports on the basis of those findings, and which is
barrels per day, in addition to exports under                thereafter enacted into law.
subparagraphs (A) and (B), except that any ocean
transportation of such oil shall be by vessels                   (3) Notwithstanding any other provision of this
documented under section 12106 of title 46, United           section or any other provision of law, including
States Code) 6 may be exported from the United               subsection (u) of section 28 of the Mineral Leasing
States, or any of its territories and possessions, subject   Act of 1920 [30 U.S.C. 185(u)], the President may
to paragraph (2) of this subsection.                         export oil to any country pursuant to a bilateral
                                                             international oil supply agreement entered into by the
    (2) Crude oil subject to the prohibition contained       United States with such nation before June 25, 1979,
in paragraph (1) may be exported only if--                   or to any country pursuant to the International
                                                             Emergency Oil Sharing Plan of the International
       (A) the President so recommends to the                Energy Agency.
Congress after making and publishing express
findings that exports of such crude oil, including           (e) Refined Petroleum Product.--
exchanges--
                                                                 (1) In any case in which the President determines
          (i) will not diminish the total quantity or        that it is necessary to impose export controls on
   quality of petroleum refined within, stored within,       refined petroleum products in order to carry out the
   or legally committed to be transported to and sold        policy set forth in Section 3(2)(C) of this Act, the
   within the United States;                                 President shall notify the Congress of that
                                                             determination. The President shall also notify the
            (ii)  will, within 3 months following the        Congress if and when he determines that such export
   initiation of such exports or changes, result in (I)      controls are no longer necessary. During any period
   acquisition costs to the refiners which purchase the      in which a determination that such export controls are
   imported crude oil being lower than the acquisition       necessary is in effect, no refined petroleum product
   costs such refiners would have to pay for the             may be exported except pursuant to an export license
   domestically produced oil in the absence of such          specifically authorizing such export. Not later than 5
   an export or exchange, and (II) not less than 75          days after an application for a license to export any
   percent of such savings in costs being reflected in       refined petroleum product or residual fuel oil is
   wholesale and retail prices of products refined           received, the Secretary shall notify the Congress of
   from such imported crude oil;                             such application, together with the name of the
                                                             exporter, the destination of the proposed export, and
          (iii) will be made only pursuant to                the amount and price of the proposed export. Such
   contracts which may be terminated if the crude oil        notification shall be made to the chairman of the
   supplies of the United States are interrupted,            Committee on International Relations of the House of
   threatened, or diminished.                                Representatives and the chairman of the Committee
                                                             on Banking, Housing, and Urban Affairs of the
           (iv)     are clearly necessary to protect         Senate.
   the national interest; and
                                                                 (2) The Secretary may not grant such license
           (v) are in accordance with the provisions         during the 30-day period beginning on the date on
   of this Act; and                                          which notification to the Congress under paragraph
                                                             (1) is received, unless the President certifies in writing
     (B) the President includes such findings in his         to the Speaker of the House of Representatives and the
recommendation to the Congress and the Congress,             President pro tempore of the Senate that the proposed
                                                             export is vital to the national interest and that a delay
                  6                                          in issuing the license would adversely affect that
                    U.S.-Canada Free-Trade Agreement,
                                                             interest.
Pub. L. 100-449, 305, 102 Stat. 1851, 1876.
                                                                 (3) This subsection shall not apply to (A) any

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export license application for exports to a country with    with the Secretary of Agriculture, agricultural
respect to which historical export quotas established       commodities purchased by or for use in a foreign
by the Secretary on the basis of past trading               country may remain in the United States for export at a
relationships apply, or (B) any license application for     later date free from any quantitative limitations on
exports to a country if exports under the license would     export which may be imposed to carry out the policy
not result in more than 250,000 barrels of refined          set forth in section 3(2)(C) of this Act subsequent to
petroleum products being exported from the United           such approval. The Secretary may not grant such
States to such country in any fiscal year.                  approval unless the Secretary receives adequate
                                                            assurance and, in conjunction with the Secretary of
    (4) For purposes of this subsection, “refined           Agriculture, finds (A) that such commodities will
petroleum product” means gasoline, kerosene,                eventually be exported, (B) that neither the sale nor
distillates, propane or butane gas, diesel fuel, and        export thereof will result in an excessive drain of
residual fuel oil refined within the United States or       scarce materials and have a serious domestic
entered for consumption within the United States.           inflationary impact, (C) that storage of such
                                                            commodities in the United States will not unduly limit
   (5) The Secretary may extend any time period             the space available for storage of domestically owned
prescribed in section 10 of this Act to the extent          commodities, and (D) that the purpose of such storage
necessary to take into account delays in action by the      is to establish a reserve of such commodities for later
Secretary on a license application on account of the        use, not including resale to or use by another country.
provisions of this subsection.                              The Secretary may issue such regulations as may be
                                                            necessary to implement this paragraph.
(f) Certain Petroleum Products.--            Petroleum
products refined in United States Foreign Trade                 (3) (A) If the President imposes export controls on
Zones, or in the United States Territory of Guam, from      any agricultural commodity in order to carry out the
foreign crude oil shall be excluded from any                policy set forth in paragraph (2)(B), (2)(C), (7), or (8)
quantitative restrictions imposed under this section        of Section 3 of this Act, the President shall
except that, if the Secretary finds that a product is in    immediately transmit a report on such action to the
short supply, the Secretary may issue such regulations      Congress, setting forth the reasons for the controls in
as may be necessary to limit exports.                       detail and specifying the periods of time, which may
                                                            not exceed 1 year, that the controls are proposed to be
(g) Agricultural Commodities.--                             in effect. If the Congress, within 60 days after the
                                                            date of its receipt of the report, adopts a joint
    (1) The Authority conferred by this section shall       resolution pursuant to paragraph (4) approving the
not be exercised with respect to any agricultural           imposition of the export controls, then such controls
commodity, including fats and oils or animal hides or       shall remain in effect for the period specified in the
skins, without the approval of the Secretary of             report, or until terminated by the President, whichever
Agriculture. The Secretary of Agriculture shall not         occurs first. If the Congress, within 60 days after the
approve the exercise of such authority with respect to      date of its receipt of such report, fails to adopt a joint
any such commodity during any period for which the          resolution approving such controls then such controls
supply of such commodity is determined by the               shall cease to be effective upon the expiration of that
Secretary of Agriculture to be in excess of the             60-day period.
requirements of the domestic economy except to the
extent the President determines that such exercise of              (B) The provisions of subparagraph (A) and
authority is required to carry out the policies set forth   paragraph (4) shall not apply to export controls--
in subparagraph (A) or (B) of paragraph (2) of section
3 of this Act. The Secretary of Agriculture shall, by                  (i) which are extended under this Act if
exercising the authority which the Secretary of                the controls, when imposed, were approved by the
Agriculture has under other applicable provisions of           Congress under subparagraph (A) and paragraph
law, collect data with respect to export sales of animal       (4); or
hides and skins.                                                       (ii) which are imposed with respect to a
                                                               country as part of the prohibition or curtailment of
   (2) Upon approval of the Secretary, in consultation         all exports to that country.

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                                                             consideration a resolution of the House of
    (4) (A) For purposes of this paragraph, the term         Representatives providing procedures for the
“joint resolution” means only a joint resolution the         immediate consideration of a joint resolution under
matter after the resolving clause of which is as             this paragraph which may be similar, if applicable, to
follows: “That pursuant to Section 7(g)(3) of the            the procedures set forth in section 601(b)(4) of the
Export Administration Act of 1979, the President may         International Security Assistance and Arms Export
impose export controls as specified in the report            Control Act of 1976.
submitted to the Congress on                   .”, with
the blank space being filled with the appropriate date.              (F) In the case of a joint resolution described in
                                                             subparagraph (A), if, before the passage by one House
        (B) On the day on which a report is submitted        of a joint resolution of that House, that House receives
to the House of Representatives and the Senate under         a resolution with respect to the same matter from the
paragraph (3), a joint resolution with respect to the        other House, thenB
export controls specified in such report shall be
introduced (by request) in the House by the chairman                   (i) the procedure in that House shall be
of the Committee on International Relations, for                the same as if no joint resolution has been received
himself and the ranking minority member of the                  from the other House; but
Committee, or by Members of the House designated
by the chairman and ranking minority member; and                        (ii) the vote on final passage shall be on
shall be introduced (by request) in the Senate by the           the joint resolution of the other House.
majority leader of the Senate, for himself and the
minority leader of the Senate, or by Members of the              (5) In the computation of the period of 60 days
Senate designated by the majority leader and minority        referred to in paragraph (3) and the period of 30 days
leader of the Senate. If either House is not in session      referred to in subparagraph (D) of paragraph (4), there
on the day on which such a report is submitted, the          shall be excluded the days on which either House of
joint resolution shall be introduced in that House, as       Congress is not in session because of an adjournment
provided in the preceding sentence, on the first day         of more than 3 days to a day certain or because of an
thereafter on which that House is in session.                adjournment of the Congress sine die.

       (C) All joint resolutions introduced in the           (h) Barter Agreements.--
House of Representatives shall be referred to the
appropriate committee and all joint resolutions                  (1) The exportation pursuant to a barter agreement
introduced in the Senate shall be referred to the            of any goods which may lawfully be exported from the
Committee on Banking, Housing, and Urban Affairs.            United States, for any goods which may lawfully be
                                                             imported into the United States, may be exempted, in
        (D) If the committee of either House to which a      accordance with paragraph (2) of this subsection, from
joint resolution has been referred has not reported the      any quantitative limitation on exports (other than any
joint resolution at the end of 30 days after its referral,   reporting requirement) imposed to carry out the policy
the committee shall be discharged from further               set forth in section 3(2)(C) of this Act.
consideration of the resolution or of any other joint
resolution introduced with respect to the same matter.          (2) The Secretary shall grant an exemption under
                                                             paragraph (1) if the Secretary finds, after consultation
       (E) A joint resolution under this paragraph           with the appropriate department or agency of the
shall be considered in the Senate in accordance with         United States, that--
the provisions of section 601(b)(4) of the International
Security Assistance and Arms Export Control Act of                 (A) for the period during which the barter
1976 (22 U.S.C. “ 2151 et seq., Pub. L. 94-329, June         agreement is to be performed--
30, 1976). For the purpose of expediting the
consideration and passage of joint resolutions reported               (i) the average annual quantity of the
or discharged pursuant to the provisions of this                goods to be exported pursuant to the barter
paragraph, it shall be in order for the Committee on            agreement will not be required to satisfy the
Rules of the House of Representatives to present for            average amount of such goods estimated to be

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   required annually by the domestic economy and           Secretary shall utilize the multiple validated export
   will be surplus thereto; and                            licenses described in section 4(a)(2) of this Act in lieu
                                                           of validated licenses for exports under this subsection.
          (ii)   the average annual quantity of the
   goods to be imported will be less than the average          (3) The Secretary shall allocate export licenses to
   amount of such goods estimated to be required           exporters pursuant to this subsection on the basis of a
   annually to supplement domestic production; and         prior history of exportation by such exporters and such
                                                           other factors as the Secretary considers necessary and
       (B) the parties to such barter agreement have       appropriate to minimize any hardship to the producers
demonstrated adequately that they intend, and have         of western red cedar and to further the foreign policy
the capacity, to perform such barter agreement.            of the United States.

    (3) For purposes of this subsection, the term             (4) Unprocessed western red cedar logs shall not
“barter agreement” means any agreement which is            be considered to be an agricultural commodity for
made for the exchange, without monetary                    purposes of subsection (g) of this section.
consideration, of any goods produced in the United
States for any goods produced outside of the United           (5) As used in this subsection, the term
States.                                                    “unprocessed western red cedar” means red cedar
                                                           timber which has not been processed into--
    (4) This subsection shall apply only with respect to
barter agreements entered into after the effective date          (A) lumber of American Lumber Standards
of this Act [September 30, 1979].                          Grades of Number 3 dimension or better, or Pacific
                                                           Lumber Inspection Bureau Export R-List Grades of
(i) Unprocessed Red Cedar.--                               Number 3 common or better;

    (1) The Secretary shall require a validated license,          (B) chips, pulp, and pulp products;
under the authority contained in subsection (a) of this
section, for the export of unprocessed western red                (C) veneer and plywood;
cedar (Thuja plicata) logs, harvested from State or
Federal lands.       The Secretary shall impose                    (D) poles, posts, or pilings cut or treated with
quantitative restrictions upon the export of               preservative for use as such and not intended to be
unprocessed western red cedar logs harvested from          further processed; or
State or Federal lands during the 3-year period
beginning on the effective date of this Act as follows:           (E) shakes and shingles.

       (A) Not more than thirty million board feet         (j) Effect of Controls on Existing Contracts.-- The
scribner of such logs may be exported during the first     export restrictions contained in subsection (i) of this
year of such 3-year period.                                section and any export controls imposed under this
                                                           section shall not affect any contract to harvest
       (B) Not more than fifteen million board feet        unprocessed western red cedar from State lands which
scribner of such logs may be exported during the           was entered into before October 1, 1979, and the
second year of such period.                                performance of which would make the red cedar
                                                           available for export. Any export controls imposed
       (C) Not more than five million board feet           under this section on any agricultural commodity
scribner of such logs may be exported during the third     (including fats, oils, and animal hides and skins) or on
year of such period.                                       any forest product or fishery product, shall not affect
                                                           any contract to export entered into before the date on
After the end of such 3-year period, no unprocessed        which such controls are imposed. For purposes of
western red cedar logs harvested from State or Federal     this subsection, the term “contract to export” includes,
lands may be exported from the United States.              but is not limited to, an export sales agreement and an
                                                           agreement to invest in an enterprise which involves
   (2) To the maximum extent practicable, the              the export of goods or technology.

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                                                            any United States person on the basis of race, religion,
(k) Oil Exports for Use by United States Military           sex, or national origin of that person or of any owner,
Facilities.-- For purposes of subsection (d) of this        officer, director, or employee of such person.
section, and for purposes of any export controls
imposed under this Act, shipments of crude oil,                    (C) Furnishing information with respect to the
refined petroleum products, or partially refined            race, religion, sex, or national origin of any United
petroleum products from the United States for use by        States person or of any owner, officer, director, or
the Department of Defense or United States-supported        employee of such person.
installations or facilities shall not be considered to be
exports.7                                                           (D) Furnishing information about whether any
                                                            person has, has had, or proposes to have any business
                                                            relationship (including a relationship by way of sale,
                 Section 8.                                 purchase, legal or commercial representation,
             FOREIGN BOYCOTTS                               shipping or other transport, insurance, investment, or
                                                            supply) with or in the boycotted country, with any
(a) Prohibitions and Exceptions.--                          business concern organized under the laws of the
                                                            boycotted country, with any national or resident of the
    (1) For the purpose of implementing the policies        boycotted country, or with any other person which is
set forth in subparagraph (A) or (B) of paragraph (5)       known or believed to be restricted from having any
of section 3 of this Act, the President shall issue         business relationship with or in the boycotted country.
regulations prohibiting any United States person, with      Nothing in this paragraph shall prohibit the furnishing
respect to his activities in the interstate or foreign      of normal business information in a commercial
commerce of the United States, from taking or               context as defined by the Secretary.
knowingly agreeing to take any of the following
actions with intent to comply with, further, or support            (E) Furnishing information about whether any
any boycott fostered or imposed by a foreign country        person is a member of, has made contribution to, or is
against a country which is friendly to the United States    otherwise associated with or involved in the activities
and which is not itself the object of any form of           of any charitable or fraternal organization which
boycott pursuant to United States law or regulation:        supports the boycotted country.

        (A) Refusing, or requiring any other person to              (F) Paying, honoring, confirming, or otherwise
refuse, to do business with or in the boycotted country,    implementing a letter of credit which contains any
with any business concern organized under the laws of       condition or requirement compliance with which is
the boycotted country, with any national or resident of     prohibited by regulations issued pursuant to this
the boycotted country, or with any other person,            paragraph, and no United States person shall, as a
pursuant to an agreement with, a requirement of, or a       result of the application of this paragraph, be obligated
request from or on behalf of the boycotting country.        to pay or otherwise honor or implement such letter of
The mere absence of a business relationship with or in      credit.
the boycotted country with any business concern
organized under the laws of the boycotted country,             (2) Regulations issued pursuant to paragraph (1)
with any national or resident of the boycotted country,     shall provide exceptions for--
or with any other person, does not indicate the
existence of the intent required to establish a violation          (A) complying or agreeing to comply with
of regulations issued to carry out this subparagraph.       requirements (i) prohibiting the import of goods or
                                                            services from the boycotted country or goods
        (B) Refusing, or requiring any other person to      produced or services provided by any business
refuse, to employ or otherwise discriminating against       concern organized under the laws of the boycotted
                                                            country or by nationals or residents of the boycotted
                                                            country, or (ii) prohibiting the shipment of goods to
             7                                              the boycotted country on a carrier of the boycotted
                  Pub. L. 100-180 1246 (101 Stat. 1165)
                                                            country, or by a route other than that prescribed by the
added subsection (k).
                                                            boycotting country or the recipient of the shipment;

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                                                            (2)(C) and (2)(F) shall not provide exceptions from
        (B) complying or agreeing to comply with            paragraphs (1)(B) and (1)(C).
import and shipping document requirements with
respect to the country of origin, the name of the carrier       (4) Nothing in the subsection may be construed to
and route of shipment, the name of the supplier of the      supersede or limit the operation of the antitrust or civil
shipment or the name of the provider of other services,     rights laws of the United States.
except that no information knowingly furnished or
conveyed in response to such requirements may be                (5) This section shall apply to any transaction or
stated in negative, blacklisting, or similar exclusionary   activity undertaken, by or through a United States
terms, other than with respect to carriers or route of      person or any other person, with intent to evade the
shipment as may be permitted by such regulations in         provisions of this section as implemented by the
order to comply with precautionary requirements             regulations issued pursuant to this subsection, and
protecting against war risks and confiscation;              such regulations shall expressly provide that the
                                                            exceptions set forth in paragraph (2) shall not permit
        (C) complying or agreeing to comply in the          activities or agreements (expressed or implied by a
normal course of business with the unilateral and           course of conduct, including a pattern of responses)
specific selection by a boycotting country, or national     otherwise prohibited, which are not within the intent
or resident thereof, of carriers, insurers, suppliers of    of such exceptions.
services to be performed within the boycotting
country or specific goods which, in the normal course       (b) Foreign Policy Controls.--
of business, are identifiable by source when imported
into the boycotting country;                                    (1) In addition to the regulations issued pursuant to
                                                            subsection (a) of this section, regulations issued under
       (D) complying or agreeing to comply with             section 6 of this Act shall implement the policies set
export requirements of the boycotting country relating      forth in section 3(5).
to shipments or transshipment of exports to the
boycotted country, to any business concern of or                (2) Such regulations shall require that any United
organized under the laws of the boycotted country, or       States person receiving a request for the furnishing of
to any national or resident of the boycotted country;       information, the entering into or implementing of
                                                            agreements, or the taking of any other action referred
       (E) compliance by an individual or agreement         to in section 3(5) shall report that fact to the Secretary,
by an individual to comply with the immigration or          together with such other information concerning such
passport requirements of any country with respect to        request as the Secretary may require for such action as
such individual or any member of such individual's          the Secretary considers appropriate for carrying out
family or with requests for information regarding           the policies of that section. Such person shall also
requirements of employment of such individual within        report to the Secretary whether such person intends to
the boycotting country; and                                 comply and whether such person has complied with
                                                            such request. Any report filed pursuant to this
        (F) compliance by a United States person            paragraph shall be made available promptly for public
resident in a foreign country or agreement by such          inspection and copying, except that information
person to comply with the laws of the country with          regarding the quantity, description, and value of any
respect to his activities exclusively therein, and such     goods or technology to which such report relates may
regulations may contain exceptions for such resident        be kept confidential if the Secretary determines that
complying with the laws or regulations of the foreign       disclosure thereof would place the United States
country governing imports into such country of              person involved at a competitive disadvantage. The
trademarked, trade named, or similarly specifically         Secretary shall periodically transmit summaries of the
identifiable products, or components of products for        information contained in such reports to the Secretary
his own use, including the performance of contractual       of State for such action as the Secretary of State, in
services within that country, as may be defined by          consultation with the Secretary, considers appropriate
such regulations.                                           for carrying out the policies set forth in section 3(5) of
                                                            this Act.
   (3) Regulations issued pursuant to paragraphs

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(c) Preemption.-- The provisions of this section and        In determining whether relief shall be granted, the
the regulations issued pursuant thereto shall preempt       Secretary shall take into accountB
any law, rule, or regulation of any of the several States
or the District of Columbia, or any of the territories or          (A) ownership of material for which there is no
possessions of the United States, or of any                 practicable domestic market by virtue of the location
governmental subdivision thereof, which law, rule, or       or nature of the material;
regulation pertains to participation in, compliance
with, implementation of, or the furnishing of                      (B) potential serious financial loss to the
information regarding restrictive trade practices or        applicant if not granted an exception;
boycotts fostered or imposed by foreign countries
against other countries.                                           (C) inability to obtain, except through import,
                                                            an item essential for domestic use which is produced
                                                            abroad from the good under control;
            Section 9.
   PROCEDURES FOR HARDSHIP                                          (D) the extent to which denial would conflict,
                                                            to the particular detriment of the applicant, with other
 RELIEF FROM EXPORT CONTROLS                                national policies including those reflected in any
                                                            international agreement to which the United States is a
(a) Filing of Petitions.-- Any person who, in such          party;
person's domestic manufacturing process or other
domestic business operation, utilizes a product                    (E) possible adverse effects on the economy
produced abroad in whole or in part from a good             (including unemployment) in any locality or region of
historically obtained from the United States but which      the United States; and
has been made subject to export controls, or any
person who historically has exported such good, may                (F) other relevant factors, including the
transmit a petition of hardship to the Secretary            applicant's lack of an exporting history during any
requesting an exemption from such controls in order to      base period that may be established with respect to
alleviate any unique hardship resulting from the            export quotas for the particular good.
imposition of such controls. A petition under this
section shall be in such form as the Secretary shall           (2) The effect a finding in favor of the applicant
prescribe and shall contain information demonstrating       would have an attainment of the basic objectives of the
the need for the relief requested.                          short supply control program.
(b) Decision of the Secretary.-- Not later than 30          In all cases, the desire to sell at higher prices and
days after receipt of any petition under subsection (a),    thereby obtain greater profits shall not be considered
the Secretary shall transmit a written decision to the      as evidence of a unique hardship, nor will
petitioner granting or denying the requested relief.        circumstances where the hardship is due to imprudent
Such decision shall contain a statement setting forth       acts or failure to act on the part of the petitioner.
the Secretary's basis for the grant or denial. Any
exemption granted may be subject to such conditions
as the Secretary considers appropriate.
                                                                       Section 10.
(c) Factors to be Considered.-- For purposes of this          PROCEDURES FOR PROCESSING
section, the Secretary's decision with respect to the        EXPORT LICENSE APPLICATIONS;
grant or denial of relief from unique hardship resulting           OTHER INQUIRIES
directly or indirectly from the imposition of export
controls shall reflect the Secretary's consideration of     (a) Primary Responsibility of the Secretary.--
factors such as the following:
                                                                (1) All export license applications required under
   (1) Whether denial would cause a unique hardship         this Act shall be submitted by the applicant to the
to the petitioner which can be alleviated only by           Secretary. All determinations with respect to any
granting an exception to the applicable regulations.        such application shall be made by the Secretary,

Export Administration Regulations                                                                 January 23, 2013
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subject to the procedures provided in this section.         Secretary determines that it is not necessary to refer an
                                                            application to any other department or agency for its
    (2) It is the intent of the Congress that a             information and recommendations, a license shall be
determination with respect to any export license            formally issued or denied within 60 days after a
application be made to the maximum extent possible          properly completed application has been submitted
by the Secretary without referral of such application to    pursuant to this section.
any other department or agency of the Government.
                                                            (d) Referral    to      Other     Departments      and
    (3) To the extent necessary, the Secretary shall        Agencies.-- Except in the case of exports described
seek information and recommendations from the               in subsection (o), in each case in which the Secretary
Government departments and agencies concerned               determines that it is necessary to refer an application
with aspects of United States domestic and foreign          to any other department or agency for its information
policies and operations having an important bearing         and recommendations, the Secretary shall, within 20
on exports. Such departments and agencies shall             days after the submission of a properly completed
cooperate fully in rendering such information and           application--
recommendations.
                                                               (1) refer the application, together with all
(b) Initial Screening.-- Within 10 days after the date      necessary analysis and recommendations of the
on which any export license application is submitted        Department of Commerce, concurrently to all such
pursuant to subsection (a)(1), the Secretary shall--        departments or agencies; and

   (1) send the applicant an acknowledgment of the              (2) if the applicant so requests, provide the
receipt of the application and the date of the receipt;     applicant with an opportunity to review for accuracy
                                                            any documentation to be referred to any such
    (2) submit to the applicant a written description of    department or agency with respect to such application
the procedures required by this section, the                for the purpose of describing the export in question in
responsibilities of the Secretary and of other              order to determine whether such documentation
departments and agencies with respect to the                accurately describes the proposed export.
application, and the rights of the applicant;
                                                            Notwithstanding the 10-day period set forth in
    (3) return the application without action if the        subsection (b), in the case of exports described in
application is improperly completed or if additional        subsection (o), in each case in which the Secretary
information is required, with sufficient information to     determines that it is necessary to refer an application
permit the application to be properly resubmitted, in       to any other department or agency for its information
which case if such application is resubmitted, it shall     and recommendations, the Secretary shall,
be treated as a new application for the purpose of          immediately upon receipt of the properly completed
calculating the time periods prescribed in this section;    application, refer the application to such department or
                                                            agency for its review.          Such review shall be
    (4) determine whether it is necessary to refer the      concurrent with that of the Department of Commerce.
application to any other department or agency and, if
such referral is determined to be necessary, inform the     (e) Action by Other Departments and Agencies.--
applicant of any such department or agency to which
the application will be referred; and                           (1) Any department or agency to which an
                                                            application is referred pursuant to subsection (d) shall
   (5) determine whether it is necessary to submit the      submit to the Secretary the information or
application to a multilateral review process, pursuant      recommendations requested with respect to the
to a multilateral agreement, formal or informal, to         application. The information or recommendations
which the United States is a party and, if so, inform the   shall be submitted within 20 days after the department
applicant of this requirement.                              or agency receives the application or, in the case of
                                                            exports described in subsection (o), before the
(c) Action on Certain Applications.-- Except as             expiration of the time periods permitted by that
provided in subsection (o), in each case in which the       subsection. Except as provided in paragraph (2), any

Export Administration Regulations                                                                  January 23, 2013
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such department or agency which does not submit its       subsection (o).
recommendations within the time period prescribed in
the preceding sentence shall be deemed by the                 (2) In cases where the Secretary receives questions
Secretary to have no objection to the approval of such    or negative considerations or recommendations from
application.                                              any other department or agency with respect to an
                                                          application, the Secretary shall, to the maximum
   (2) (A) Except in the case of exports described in     extent consistent with the national security and foreign
subsection (o), if the head of any such department or     policy of the United States, inform the applicant in
agency notifies the Secretary before the expiration of    writing of the specific questions raised and any such
the time period provided in paragraph (1) for             negative considerations or recommendations. Before
submission of its recommendations that more time is       a final determination with respect to the application is
required for review by such department or agency,         made, the applicant shall be entitled--
such department or agency shall have an additional
20-day period to submit its recommendations to the                (A) to respond in writing to such questions,
Secretary. If such department or agency does not          considerations, or recommendations within 30 days
submit its recommendations within the time period         after receipt of such information from the Secretary;
prescribed by the preceding sentence, it shall be         and
deemed by the Secretary to have no objection to the
approval of such application.                                    (B) upon the filing of a written request with the
                                                          Secretary within 15 days after the receipt of such
       (B) In the case of exports described in            information, to respond in person to the department or
subsection (o), if the head of any such department or     agency raising such questions, considerations or
agency notifies the Secretary, before the expiration of   recommendations.
the 15-day period provided in subsection (o)(1), that
more time is required for review by such department       The provisions of this paragraph shall not apply in the
or agency, the Secretary shall notify the applicant,      case of exports described in subsection (o).
pursuant to subsection (o)(1)(C), that additional time
is required to consider the application, and such             (3) In cases where the Secretary has determined
department or agency shall have additional time to        that an application should be denied, the applicant
consider the application within the limits permitted by   shall be informed in writing, within 5 days after such
subsection (o)(2). If such department or agency does      determination is made, of--
not submit its recommendations within the time
periods permitted under subsection (o), it shall be              (A) the determination,
deemed by the Secretary to have no objection to the
approval of such application.                                    (B) the statutory basis for the proposed denial,

(f) Action by the Secretary.--                                  (C) the policies set forth in Section 3 of this Act
                                                          which would be furthered by the proposed denial,
    (1) Within 60 days after receipt of the
recommendations of other departments and agencies                (D) what, if any, modifications in or restrictions
with respect to a license application, as provided in     on the goods or technology for which the license was
subsection (e), the Secretary shall formally issue or     sought would allow such export to be compatible with
deny the license. In deciding whether to issue or         export controls imposed under this Act,
deny a license, the Secretary shall take into account
any recommendation of a department or agency with                (E) which officers and employees of the
respect to the application in question. In cases where    Department of Commerce who are familiar with the
the Secretary receives conflicting recommendations,       application will be made reasonably available to the
the Secretary shall, within the 60-day period provided    applicant for considerations with regard to such
for in this subsection, take such action as may be        modifications or restrictions, if appropriate,
necessary       to     resolve     such     conflicting
recommendations. The provisions of this paragraph                (F) to the extent consistent with the national
shall not apply in the case of exports described in       security and foreign policy of the United States, the

Export Administration Regulations                                                                January 23, 2013
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specific considerations which led to the determination      may disapprove such export. The Secretary of
to deny the application, and                                Defense shall carefully consider any notification
                                                            submitted by the Secretary pursuant to this paragraph
       (G)     the availability of appeal procedures.       and, not later than 20 days after notification of the
                                                            request, shall--
The Secretary shall allow the applicant at least 30 days
to respond to the Secretary's determination before the              (A) recommend to the President and the
license application is denied. In the event decisions       Secretary that he disapprove any request for the export
on license applications are deferred inconsistent with      of the goods or technology involved to the particular
the provisions of this section, the applicant shall be so   country if the Secretary of Defense determines that the
informed in writing within 5 days after such deferral.      export of such goods or technology will make a signi-
                                                            ficant contribution, which would prove detrimental to
    (4) If the Secretary determines that a particular       the national security of the United States, to the
application or set of applications is of exceptional        military potential of such country or any other
importance and complexity, and that additional time is      country;
required for negotiations to modify the application or
applications, the Secretary may extend any time                   (B) notify the Secretary that he would
period prescribed in this section.     The Secretary        recommend approval subject to specified conditions;
shall notify the Congress and the applicant of such         or
extension and the reasons therefor. The provisions of
this paragraph shall not apply in the case of exports              (C) recommend to the Secretary that the export
described in subsection (o).                                of goods or technology be approved.

(g) Special Procedures for Secretary of Defense.--          Whenever the Secretary of Defense makes a
                                                            recommendation to the President pursuant to
    (1) Notwithstanding any other provision of this         paragraph (2)(A), the Secretary shall also submit his
section, the Secretary of Defense is authorized to          recommendation to the President on the request to
review any proposed export of any goods or                  export if the Secretary differs with the Secretary of
technology to any country to which exports are              Defense. If the President notifies the Secretary,
controlled for national security purposes and,              within 20 days after receiving a recommendation from
whenever the Secretary of Defense determines that the       the Secretary of Defense, that he disapproves such
export of such goods or technology will make a              export, no license or other authority may be issued for
significant contribution, which would prove                 the export of such goods or technology to such
detrimental to the national security of the United          country. If the Secretary of Defense fails to make a
States, to the military potential of any such country, to   recommendation or notification under this paragraph
recommend to the President that such export be              within the 20-day period specified in the third
disapproved.                                                sentence, or if the President, within 20 days after
                                                            receiving a recommendation from the Secretary of
    (2) Notwithstanding any other provision of law,         Defense with respect to an export, fails to notify the
the Secretary of Defense shall determine, in                Secretary that he approves or disapproves the export,
consultation with the Secretary, and confirm in writing     the Secretary shall approve or deny the request for a
the types and categories of transactions which should       license or other authority to export without such
be reviewed by the Secretary of Defense in order to         recommendation or notification.
make a determination referred to in paragraph (1).
Whenever a license or other authority is requested for          (3) The Secretary shall approve or disapprove a
the export to any country to which exports are              license application, and issue or deny a license, in
controlled for national security purposes of goods or       accordance with the provisions of this subsection, and,
technology within any such type or category, the            to the extent applicable, in accordance with the time
Secretary shall notify the Secretary of Defense of such     periods and procedures otherwise set forth in this
request, and the Secretary may not issue any license or     section.
other authority pursuant to such request before the
expiration of the period within which the President         (h) Multilateral Controls.-- In any case in which an

Export Administration Regulations                                                                 January 23, 2013
Legal Authority                                                                                                      46

application which has been finally approved under             applicant.
subsection (c), (f), or (g) of this section, is required to
be submitted to a multilateral review process, pursuant           (2) In any case in which any action prescribed in
to a multilateral agreement, formal or informal, to           this section is not taken on the license application
which the United States is a party, the license shall not     within the time periods established by this section
be issued as prescribed in such subsections, but the          (except in the case of a time period extended under
Secretary shall notify the applicant of the approval of       subsection (f)(4) of which the applicant is notified),
the application (and the date of such approval) by the        the applicant may file a petition with the Secretary
Secretary subject to such multilateral review. The            requesting compliance with the requirements of this
license shall be issued upon approval of the                  section. When such petition is filed, the Secretary
application under such multilateral review. If such           shall take immediate steps to correct the situation
multilateral review has not resulted in a determination       giving rise to the petition and shall immediately notify
with respect to the application within 40 days after          the applicant of such steps.
such date, the Secretary's approval of the license shall
be final and the license shall be issued, unless the              (3) If, within 20 days after a petition is filed under
Secretary determines that issuance of the license             paragraph (2), the processing of the application has
would prove detrimental to the national security of the       not been brought into conformity with the
United States. At the time at which the Secretary             requirements of this section, or the application has
makes such a determination, the Secretary shall notify        been brought into conformity with such requirements
the applicant of the determination and shall notify the       but the Secretary has not so notified the applicant, the
Congress of the determination, the reasons for the            applicant may bring an action in an appropriate United
determination, the reasons for which the multilateral         States district court for a restraining order, a
review could not be concluded within such 40-day              temporary or permanent injunction, or other
period, and the actions planned or being taken by the         appropriate relief, to require compliance with the
United States Government to secure conclusion of the          requirements of this section. The United States
multilateral review. At the end of every 40-day               district courts shall have jurisdiction to provide such
period after such notification to Congress, the               relief, as appropriate.
Secretary shall advise the applicant and the Congress
of the status of the application, and shall report to the     (k) Changes in Requirements for Applications.--
Congress in detail on the reasons for the further delay       Except as provided in subsection (b)(3) of this section,
and any further actions being taken by the United             in any case in which, after a license application is
States Government to secure conclusion of the                 submitted, the Secretary changes the requirements for
multilateral review. In addition, at the time at which        such a license application, the Secretary may request
the Secretary issues or denies the license upon               appropriate additional information of the applicant,
conclusion of the multilateral review, the Secretary          but the Secretary may not return the application to the
shall notify the Congress of such issuance or denial          applicant without action because it fails to meet the
and of the total time required for the multilateral           changed requirements.
review.
                                                              (l) Other Inquiries.--
(i) Records.-- The Secretary and any department or
agency to which any application is referred under this           (1) In any case in which the Secretary receives a
section shall keep accurate records with respect to all       written request asking for the proper classification of a
applications considered by the Secretary or by any            good or technology on the control list, the Secretary
such department or agency, including, in the case of          shall, within 10 working days after receipt of the
the Secretary, any dissenting recommendations                 request, inform the person making the request of the
received from any such department or agency.                  proper classification.

(j) Appeal and Court Action.--                                    (2) In any case in which the Secretary receives a
                                                              written request for information about the applicability
   (1) The Secretary shall establish appropriate              of export license requirements under this Act to a
procedures for any applicant to appeal to the Secretary       proposed export transaction or series of transactions,
the denial of an export license application of the            the Secretary shall, within 30 days after the receipt of

Export Administration Regulations                                                                     January 23, 2013
Legal Authority                                                                                                   47

the request, reply with that information to the person      which the application relates;
making the request.
                                                                   (C) the country of destination of the goods or
(m) Small Business Assistance.-- Not later than             technology;
120 days after the date of the enactment of this
subsection, the Secretary shall develop and transmit to            (D) the date on which the application was
the Congress a plan to assist small businesses in the       received by the Secretary;
export licensing application process under this Act.
The plan shall include, among other things,                        (E) the date on which the Secretary approved
arrangements for counseling small businesses on             or denied the application;
filing applications and identifying goods or
technology on the control list, proposals for seminars             (F) the date on which the notification of
and conferences to educate small businesses on export       approval or denial of the application was sent to the
controls and licensing procedures, and the preparation      applicant; and
of informational brochures. The Secretary shall, not
later than 120 days after the date of the enactment of             (G) the total number of days which elapsed
the Export Enhancement Act of 1988 [August 23,              between receipt of the application, in its properly
1988], report to the Congress on steps taken to             completed form, and the earlier of the last day of the
implement the plan developed under this subsection to       3-month period to which the report relates, or the date
assist small businesses in the export licensing             on which notification of approval or denial of the
application process.                                        application was sent to the applicant.

(n) Reports on License Applications.--                          (3) With respect to an application which was
                                                            referred to other departments or agencies, the listing
    (1) Not later than 180 days after the date of the       shall also include--
enactment of this subsection [July 12, 1985], and not
later than the end of each 3-month period thereafter,              (A) the departments or agencies to which the
the Secretary shall submit to the Committee on Inter-       application was referred;
national Relations of the House of Representatives
and to the Committee on Banking, Housing, and                      (B) the date or dates of such referral; and
Urban Affairs of the Senate a report listing--
                                                                  (C) the    date    or dates          on  which
       (A) all applications on which action was             recommendations were received             from those
completed during the preceding 3-month period and           departments or agencies.
which required a period longer than the period
permitted under subsection (c), (f)(1), or (h) of this           (4) With respect to an application referred to other
section, as the case may be, before notification of a       departments or agencies which did not submit or has
decision to approve or deny the application was sent to     not submitted its recommendations on the application
the applicant; and                                          within the period permitted under subsection (e) of
                                                            this section to submit such recommendations, the
        (B) in a separate section, all applications which   listing shall also include--
have been in process for a period longer than the
period permitted under subsection (c), (f)(1), or (h) of            (A) the office responsible for processing the
this section, as the case may be, and upon which final      application and the position of the officer responsible
action has not been taken.                                  for the office; and

   (2) With regard to each application, each listing                (B) the period of time that elapsed before the
shall identify--                                            recommendations were submitted or that has elapsed
                                                            since referral of the application, as the case may be.
       (A) the application case number;
                                                               (5) Each report shall also provide an introduction
       (B) the value of the goods or technology to          which contains--

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       (A) a summary of the number of applications                 (C) the Secretary requires additional time to
described in paragraph (1)(A) and (B) of this               consider the application and the applicant has been so
subsection, and the value of the goods or technology        informed.
involved in the applications, grouped according to--
                                                                (2) In the event that the Secretary notifies an
           (i) the number of days which elapsed             applicant pursuant to paragraph (1)(C) that more time
   before action on the applications was completed,         is required to consider an individual validated license
   as follows: 61 to 75 days, 76 to 90 days, 91 to 105      application, a license for the transaction specified in
   days, 106 to 120 days, and more than 120 days;           the application shall become valid and effective and
   and                                                      the goods or technology are authorized for export
                                                            pursuant to such license 30 working days after the date
          (ii) the number of days which elapsed             that such license application was formally filed with
   before action on the applications was completed,         the Secretary unless--
   or which has elapsed without action on the
   applications being completed, beyond the period                 (A) the application has been otherwise
   permitted under subsection (c), (f)(1), or (h) of this   approved by the Secretary, in which case it shall be
   section for the processing of applications, as           valid and effective according to the terms of the
   follows: not more than 15 days, 16 to 30 days, 31        approval; or
   to 45 days, 46 to 60 days, and more than 60 days;
   and                                                             (B) the application has been denied by the
                                                            Secretary pursuant to this section and the applicant has
       (B) a summary by country of destination of the       been so informed, or the applicant has been informed,
number of applications described in paragraph (1)(A)        pursuant to subsection (f)(3) of this section, that the
and (B) of this subsection, and the value of the goods      application should be denied.
or technology involved in the applications, on which
action was not completed within 60 days.                        (3) In reviewing an individual license application
                                                            subject to this subsection, the Secretary shall evaluate
(o) Exports to Members of Coordinating Committee.--         the information set forth in the application and the
                                                            reliability of the end-user.
     (1) Fifteen working days after the date of formal
filing with the Secretary of an individual validated           (4) Nothing in this subsection shall affect the
license application for the export of goods or              scope or availability of licenses authorizing multiple
technology to a country that maintains export controls      exports set forth in section 4(a)(2) of this Act.
on such goods or technology pursuant to the
agreement of the governments participating in the               (5) The provisions of this subsection shall take
group known as the Coordinating Committee, a                effect 4 months after the date of the enactment of the
license for the transaction specified in the application    Export Administration Amendments Act of 1985 [July
shall become valid and effective and the goods or           12, 1985].
technology are authorized for export pursuant to such
license unless--
                                                                               Section 11.
       (A) the application has been otherwise                                 VIOLATIONS
approved by the Secretary, in which case it shall be
valid and effective according to the terms of the           (a) In General.-- Except as provided in subsection
approval;                                                   (b) of this section, whoever knowingly violates or
                                                            conspires to or attempts to violate any provision of this
       (B) the application has been denied by the           Act or any regulation, order, or license issued
Secretary pursuant to this section and the applicant has    thereunder shall be fined not more than five times the
been so informed, or the applicant has been informed,       value of the exports involved or $50,000, whichever is
pursuant to subsection (f)(3) of this section, that the     greater, or imprisoned not more than 5 years, or both.
application should be denied; or

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(b) Willful Violations.--                                   subsection and shall, in the case of a violation of an
                                                            export control imposed under Section 6 (or any
    (1) Whoever willfully violates or conspires to or       regulation, order, or license issued with respect to such
attempts to violate any provision of this Act or any        control), be subject to the penalties set forth in
regulation, order, or license issued thereunder, with       subsection (a).
knowledge that the exports involved will be used for
the benefit of, or that the destination or intended             (4) Any person who takes any action with the
destination of the goods or technology involved is, any     intent to evade the provisions of this Act or any
controlled country or any country to which exports are      regulation, order, or license issued under this Act shall
controlled for foreign policy purposes--                    be subject to the penalties set forth in subsection (a),
                                                            except that in the case of an evasion of an export
       (A) except in the case of an individual, shall be    control imposed under Section 5 or 6 of this Act (or
fined not more than five times the value of the exports     any regulation, order, or license issued with respect to
involved or $1,000,000, whichever is greater; and           such control), such person shall be subject to the
                                                            penalties set forth in paragraph (1) of this subsection.
       (B) in the case of an individual, shall be fined
not more than $250,000, or imprisoned not more than            (5) Nothing in this subsection or subsection (a)
10 years, or both.                                          shall limit the power of the Secretary to define by
                                                            regulations violations under this Act.
    (2) Any person who is issued a validated license
under this Act for the export of any good or                (c) Civil Penalties; Administrative Sanctions.--
technology to a controlled country and who, with
knowledge that such a good or technology is being               (1) The Secretary (and officers and employees of
used by such controlled country for military or             the Department of Commerce specifically designated
intelligence gathering purposes contrary to the             by the Secretary) may impose a civil penalty not to
conditions under which the license was issued,              exceed $10,000 for each violation of this Act or any
willfully fails to report such use to the Secretary of      regulation, order or license issued under this Act,
Defense--                                                   either in addition to or in lieu of any other liability or
                                                            penalty which may be imposed, except that the civil
       (A) except in the case of an individual, shall be    penalty for each such violation involving national
fined not more than five times the value of the exports     security controls imposed under section 5 of this Act
involved or $1,000,000, whichever is greater; and           or controls imposed on the export of defense articles
                                                            and defense services under section 38 of the Arms
       (B) in the case of an individual, shall be fined     Export Control Act [22 U.S.C. 2778] may not exceed
not more than $250,000, or imprisoned not more than         $100,000.
5 years, or both.
                                                                (2) (A) The authority under this Act to suspend or
    (3) Any person who possesses any goods or               revoke the authority of any United States person to
technology--                                                export goods or technology may be used with respect
                                                            to any violation of the regulations issued pursuant to
        (A) with the intent to export such goods or         section 8(a) of this Act.
technology in violation of an export control imposed
under section 5 or 6 of this Act or any regulation,                 (B) Any administrative sanction (including any
order, or license issued with respect to such control, or   civil penalty or any suspension or revocation of
                                                            authority to export) imposed under this Act for a
       (B) knowing or having reason to believe that         violation of the regulations issued pursuant to section
the goods or technology would be so exported,               8(a) of this Act may be imposed only after notice and
                                                            opportunity for an agency hearing on the record in
shall, in the case of a violation of an export control      accordance with sections 554 through 557 of title 5,
imposed under Section 5 (or any regulation, order, or       United States Code.
license issued with respect to such control), be subject
to the penalties set forth in paragraph (1) of this                (C) Any charging letter or other document

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initiating administrative proceedings for the                (f) Actions for Recovery of Penalties.-- In the event
imposition of sanctions for violations of the                of the failure of any person to pay a penalty imposed
regulations issued pursuant to section 8(a) of this Act      pursuant to subsection (c), a civil action for the
shall be made available for public inspection and            recovery thereof may, in the discretion of the head of
copying.                                                     the department or agency concerned, be brought in the
                                                             name of the United States. In any such action, the
    (3) An exception may not be made to any order            court shall determine de novo all issues necessary to
issued under this Act which revokes the authority of a       the establishment of liability. Except as provided in
United States person to export goods or technology           this subsection and in subsection (d), no such liability
unless the Committee on International Relations of the       shall be asserted, claimed, or recovered upon by the
House of Representatives of the Committee on                 United States in any way unless it has previously been
Banking, Housing, and Urban Affairs of the Senate are        reduced to judgment.
first consulted concerning the exception.
                                                             (g) Forfeiture of Property Interest and Proceeds.--
    (4) The President may by regulation provide
standards for establishing levels of civil penalty               (1) Any person who is convicted under subsection
provided in this subsection based upon the seriousness       (a) or (b) of a violation of an export control imposed
of the violation, the culpability of the violator, and the   under Section 5 of this Act (or any regulation, order,
violator's record of cooperation with the Government         or license issued with respect to such control) shall, in
in disclosing the violation.                                 addition to any other penalty, forfeit to the United
                                                             States--
(d) Payment of Penalties.-- The payment of any
penalty imposed pursuant to subsection (c) may be                   (A) any of that person's interest in, security of,
made a condition, for a period not exceeding one year        claim against, or property or contractual rights of any
after the imposition of such penalty, to the granting,       kind in the goods or tangible items that were the
restoration, or continuing validity of any export            subject of the violation;
license, permission, or privilege granted or to be
granted to the person upon whom such penalty is                     (B) any of that person's interest in, security of,
imposed. In addition, the payment of any penalty             claim against, or property or contractual rights of any
imposed under subsection (c) may be deferred or              kind in tangible property that was used in the export or
suspended in whole or in part for a period of time no        attempt to export that was the subject of the violation;
longer than any probation period (which may exceed           and
one year) that may be imposed upon such person.
Such deferral or suspension shall not operate as a bar              (C) any of that person's property constituting,
to the collection of the penalty in the event that the       or derived from, any proceeds obtained directly or
conditions of the suspension, deferral, or probation are     indirectly as a result of the violation.(i)
not fulfilled.
                                                                 (2) The procedures in any forfeiture under this
(e) Refunds.-- Any amount paid in satisfaction of            subsection, and the duties and authority of the courts
any penalty imposed pursuant to subsection (c) or any        of the United States and the Attorney General with
amounts realized from the forfeiture of any property         respect to any forfeiture action under this subsection
interest or proceeds pursuant to subsection (g) shall be     or with respect to any property that may be subject to
covered into the Treasury as a miscellaneous receipt.        forfeiture under this subsection, shall be governed by
The head of the department or agency concerned may,          the provisions of Section 1963 of Title 18, United
in his discretion, refund any such penalty imposed           States Code.
pursuant to subsection (c), within 2 years after
payment, on the ground of a material error of fact or        (h) Prior Convictions.--
law in the imposition of the penalty.
Notwithstanding section 1346(a) of title 28, United              (1) No person convicted of a violation of this Act
States Code, no action for the refund of any such            (or any regulation, license, or order issued under this
penalty may be maintained in any court.                      Act), any regulation, license, or order issued under the
                                                             International Emergency Economic Powers Act [50

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U.S.C. 1701 et seq.], Section 793, 794, or 798 of Title      group known as the Coordinating Committee, and
18, United States Code, section 4(b) of the Internal
Security Act of 1950 (50 U.S.C. 783(b)), or section 38           (2) such violation has resulted in substantial
of the Arms Export Control Act (22 U.S.C. 2778) shall        enhancement of Soviet and East bloc capabilities in
be eligible, at the discretion of the Secretary, to apply    submarine or antisubmarine warfare, ballistic or
for or use any export license under this Act for a           antiballistic missile technology, strategic aircraft,
period of up to 10 years from the date of the                command, control, communications and intelligence,
conviction. The Secretary may revoke any export              or other critical technologies as determined by the
license under this Act in which such person has an           President, on the advice of the National Security
interest at the time of the conviction.                      Council, to represent a serious adverse impact on the
                                                             strategic balance of forces.
    (2) The Secretary may exercise the authority under
paragraph (1) with respect to any person related,            The President shall notify the Congress of each action
through affiliation, ownership, control, or position of      taken under this section. This section, except
responsibility, to any person convicted of any               subsections (h) and (j), applies only to violations that
violation of law set forth in paragraph (1), upon a          occur after the date of the enactment of the Export
showing of such relationship with the convicted party,       Enhancement Act of 1988 [August 23, 1988].
and subject to the procedures set forth in section 13(c)
of this Act.                                                 (b) Sanctions.--     The sanctions referred to in
                                                             subsection (a) shall apply to the foreign person
(i) Other Authorities.-- Nothing in subsection (c),          committing the violation, as well as to any parent,
(d), (f), (g) or (h) limits--                                affiliate, subsidiary, and successor entity of the
                                                             foreign person, and, except as provided in subsection
    (1) the availability of other administrative or          (c), are as follows:
judicial remedies with respect to violations of this Act,
or any regulation, order, or license issued under this           (1) a prohibition on contracting with, and
Act;                                                         procurement of products and services from, a
                                                             sanctioned person, by any department, agency, or
    (2) the authority to compromise and settle               instrumentality of the United States Government, and
administrative proceedings brought with respect to
violations of this Act, or any regulation, order, or             (2) a prohibition on importation into the United
license issued under this Act; or                            States of all products produced by a sanctioned
                                                             person.
    (3) the authority to compromise, remit, or mitigate
seizures and forfeitures pursuant to section 1(b) of title   (c) Exceptions.-- The President shall not apply
VI of the Act of June 15, 1917 (22 U.S.C. 401(b)).           sanctions under this section--

                                                                 (1) in the case of procurement of defense articles
              Section 11A.                                   or defense services--
         MULTILATERAL EXPORT
                                                                    (A) under existing contracts or subcontracts,
         CONTROL VIOLATIONS                                  including the exercise of options for production
                                                             quantities to satisfy United States operational military
(a) Determination by the President.-- The President,         requirements;
subject to subsection (c), shall apply sanctions under
subsection (b) for a period of not less than 2 years and            (B) if the President determines that the foreign
not more than 5 years, if the President determines           person or other entity to which the sanctions would
that--                                                       otherwise be applied is a sole source supplier of
                                                             essential defense articles or services and no alternative
    (1) a foreign person has violated any regulation         supplier can be identified; or
issued by a country to control exports for national
security purposes pursuant to the agreement of the                  (C) if the President determines that such

Export Administration Regulations                                                                   January 23, 2013
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articles or services are essential to the national security   to verify the movement of goods and technology; and
under defense coproduction agreements; or
                                                                    (E) procedures for the coordination and
   (2) to--                                                   exchange of information concerning violations of the
                                                              agreement of the Coordinating Committee.
       (A) products or services provided under
contracts or other binding agreements (as such terms          (e) Definitions.-- For purposes of this section--
are defined by the President in regulations) entered
into before the date on which the President notifies the         (1) the term “component part” means any article
Congress of the intention to impose the sanctions;            which is not usable for its intended functions without
                                                              being imbedded in or integrated into any other product
       (B) spare parts;                                       and which, if used in production of a finished product,
                                                              would be substantially transformed in that process;
       (C) component parts, but not finished products,
essential to United States products or production;                (2) the term “finished product” means any article
                                                              which is usable for its intended functions without
      (D) routine servicing and maintenance of                being imbedded or integrated into any other product,
products; or                                                  but in no case shall such term be deemed to include an
                                                              article produced by a person other than a sanctioned
       (E) information and technology.                        person that contains parts or components of the
                                                              sanctioned person if the parts or components have
(d) Exclusion.--    The President shall not apply             been substantially transformed during production of
sanctions under this section to a parent, affiliate,          the finished product; and
subsidiary, and successor entity of a foreign person if
the President determines that--                                  (3) the term “sanctioned person” means a foreign
                                                              person, and any parent, affiliate, subsidiary, or
    (1) the parent, affiliate, subsidiary, or successor       successor entity of the foreign person, upon whom
entity (as the case may be) has not knowingly violated        sanctions have been imposed under this section.
the export control regulation violated by the foreign
person, and                                                   (f) Subsequent Modifications of Sanctions.-- The
                                                              President may, after consultation with the Congress,
    (2) the government of the country with jurisdiction       limit the scope of sanctions applied to a parent,
over the parent, affiliate, subsidiary, or successor          affiliate, subsidiary, or successor entity of the foreign
entity had in effect, at the time of the violation by the     person determined to have committed the violation on
foreign person, an effective export control system            account of which the sanctions were imposed if the
consistent with principles agreed to in the                   President determines that--
Coordinating Committee, including the following:
                                                                  (1) the parent, affiliate, subsidiary, or successor
        (A) national laws providing appropriate civil         entity (as the case may be) has not, on the basis of
and criminal penalties and statutes of limitations            available evidence, itself violated the export control
sufficient to deter potential violations;                     regulation involved, either directly or through a course
                                                              of conduct;
       (B) a program to evaluate export license
applications that includes sufficient technical                   (2) the government with jurisdiction over the
expertise to assess the licensing status of exports and       parent, affiliate, subsidiary, or successor entity has
ensure the reliability of end-users;                          improved its export control system as measured by the
                                                              criteria set forth in subsection (d)(2);
       (C) an enforcement mechanism that provides
authority for trained enforcement officers to                     (3) the parent, affiliate, subsidiary, or successor
investigate and prevent illegal exports;                      entity, has instituted improvements in internal controls
                                                              sufficient to detect and prevent violations of the export
       (D) a system of export control documentation           control regime implemented under paragraph (2); and

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                                                            (j) Other Actions by the President.-- Upon making a
   (4) the impact of the sanctions imposed on the           determination under subsection (a) or (h), the
parent, affiliate, subsidiary, or successor entity is       President shall--
proportionate to the increased defense expenditures
imposed on the United States.                                  (1) initiate consultations with the foreign
                                                            government with jurisdiction over the foreign person
Notwithstanding the preceding sentence, the President       who committed the violation involved, in order to seek
may not limit the scope of the sanction referred to in      prompt remedial action by that government;
subsection (b)(1) with respect to the parent of the
foreign person determined to have committed the                 (2) initiate discussions with the governments
violation, until that sanction has been in effect for at    participating in the Coordinating Committee
least 2 years.                                              regarding the violation and means to ensure that
                                                            similar violations do not occur; and
(g) Reports to Congress.-- The President shall
include in the annual report submitted under section           (3) consult with and report to the Congress on the
14, a report on the status of any sanctions imposed         nature of the violation and the actions the President
under this section, including any exceptions,               proposes to take, or has taken, to rectify the situation.
exclusions, or modifications of sanctions that have
been applied under subsection (c), (d), or (f).             (k) Damages for Certain Violations.--

(h) Discretionary Imposition of Sanctions.-- If the             (1) In any case in which the President makes a
President determines that a foreign person has violated     determination under subsection (a), the Secretary of
a regulation issued by a country to control exports for     Defense shall determine the costs of restoring the
national security purposes pursuant to the agreement        military preparedness of the United States on account
of the group known as the Coordinating Committee,           of the violation involved. The Secretary of Defense
but in a case in which subsection (a)(2) may not apply,     shall notify the Attorney General of his determination,
the President may apply the sanctions referred to in        and the Attorney General may bring an action for
subsection (b) against that foreign person for a period     damages, in any appropriate district court of the
of not more than 5 years.                                   United States, to recover such costs against the person
                                                            who committed the violation, any person that is owned
(i) Compensation for Diversion of Militarily Critical       or controlled by the person who committed the
Technologies to Controlled Countries.--                     violation, and any person who owns and controls the
                                                            person who committed the violation.
    (1) In cases in which sanctions have been applied
against a foreign person under subsection (a), the              (3)8 The total amount awarded in any case
President shall initiate discussions with the foreign       brought under paragraph (2) shall be determined by
person and the government with jurisdiction over that       the court in light of the facts and circumstances, but
foreign person regarding compensation on the part of        shall not exceed the amount of the net loss to the
the foreign person in an amount proportionate to the        national security of the United States. An action
costs of research and development and procurement of        under this subsection shall be commenced not later
new defensive systems by the United States and the          than 3 years after the violation occurs, or one year
allies of the United States to counteract the effect of     after the violation is discovered, whichever is later.
the technological advance achieved by the Soviet
Union as a result of the violation by that foreign          (l) Definition.-- For purposes of this section, the
person.                                                     term “foreign person” means any person other than a
                                                            United States person.
    (2) The President shall, at the time that discussions
are initiated under paragraph (1), report to the
Congress that such discussions are being undertaken,
and shall report to the Congress the outcome of those                       8
                                                                               So in original.   Subsection (k) was
discussions.
                                                            enacted without a paragraph 2.


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             Section 11B.                                  under section 11 of this act
       MISSILE PROLIFERATION
                                                               (3) The President may waive the imposition of
        CONTROL VIOLATIONS                                 sanctions under paragraph (1) on a person with respect
                                                           to a product or service if the President certifies to the
(a) Violations by United States Persons.--                 Congress that--
   (1) Sanctions.--                                               (A) the product or service is essential to the
                                                           national security of the United States; and
       (A) If the President determines that a United
States person knowingly--                                         (B) such person is a sole source supplier of the
                                                           product or service, the product or service is not
          (i) exports, transfers, or otherwise             available from any alternative reliable supplier, and
   engages in the trade of any item on the MTCR            the need for the product or service cannot be met in a
   Annex, in violation of the provisions of section 38     timely manner by improved manufacturing processes
   (22 U.S.C. 2778) or chapter 7 of the Arms Export        or technological developments.
   Control Act (22 U.S.C. 2797 et seq.), section 5 or 6
   of this Act, or any regulations or orders issued        (b) Transfers of Missile Equipment or Technology by
   under any such provisions,                              Foreign Persons.--
          (ii) conspires to or attempts to engage in          (1) Sanctions.--
   such export, transfer, or trade, or
                                                                  (A) Subject to paragraphs (3) through (7), if the
          (iii) facilitates such export, transfer, or      President determines that a foreign person, after the
   trade by any other person,                              date of the enactment of this section [November 5,
                                                           1990], knowingly--
then the President shall impose the applicable
sanctions described in subparagraph (B).                              (i) exports, transfers, or otherwise
                                                              engages in the trade of any MTCR equipment or
       (B) The sanctions which apply to a United              technology that contributes to the design,
States person under subparagraph (A) are the                  development, or production of missiles in a
following:                                                    country that is not an MTCR adherent and would
                                                              be, if it were United States-origin equipment or
          (i) If the item on the MTCR Annex                   technology, subject to the jurisdiction of the
   involved in the export, transfer, or trade is missile      United States under this Act,
   equipment or technology within category II of the
   MTCR Annex, then the President shall deny to                      (ii) conspires to or attempts to engage in
   such United States person, for a period of 2 years,        such export, transfer, or trade, or
   licenses for the transfer of missile equipment or
   technology controlled under this Act.                             (iii) facilitates such export, transfer, or
                                                              trade by any other person,
          (ii) If the item on the MTCR Annex
   involved in the export, transfer, or trade is missile   or if the President has made a determination with
   equipment or technology within category I of the        respect to a foreign person under section 73(a) of the
   MTCR Annex, then the President shall deny to            Arms Export Control Act (22 U.S.C. 2797b(a)), then
   such United States person, for a period of not less     the President shall impose on that foreign person the
   than 2 years, all licenses for items the export of      applicable sanctions under subparagraph (B).
   which is controlled under this Act.
                                                                  (B) The sanctions which apply to a foreign
   (2) Discretionary Sanctions.-- In the case of any       person under subparagraph (A) are the following:
determination referred to in paragraph (1), the
Secretary may pursue any other appropriate penalties                  (i)   If the item involved in the export,

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   transfer, or trade is within category II of the MTCR     subject that person to sanctions under this subsection.
   Annex, then the President shall deny, for a period       Any person who relies in good faith on such an
   of 2 years, licenses for the transfer to such foreign    advisory opinion which states that the proposed
   person of missile equipment or technology the            activity would not subject a person to such sanctions,
   export of which is controlled under this Act.            and any person who thereafter engages in such
                                                            activity, may not be made subject to such sanctions on
           (ii) If the item involved in the export,         account of such activity.
   transfer, or trade is within category I of the MTCR
   Annex, then the President shall deny, for a period          (5) Waiver and Report to Congress.--
   of not less than 2 years, licenses for the transfer to
   such foreign person of items the export of which is              (A) In any case other than one in which an
   controlled under this Act.                               advisory opinion has been issued under paragraph (4)
                                                            stating that a proposed activity would not subject a
          (iii) If, in addition to actions taken under      person to sanctions under this subsection, the
   clauses (i) and (ii), the President determines that      President may waive the application of paragraph (1)
   the export, transfer, or trade has substantially         to a foreign person if the President determines that
   contributed to the design, development, or               such waiver is essential to the national security of the
   production of missiles in a country that is not an       United States.
   MTCR adherent, then the President shall prohibit,
   for a period of not less than 2 years, the                       (B) In the event that the President decides to
   importation into the United States of products           apply the waiver described in subparagraph (A), the
   produced by that foreign person.                         President shall so notify the Congress not less than 20
                                                            working days before issuing the waiver. Such
    (2) Inapplicability with Respect to MTCR                notification shall include a report fully articulating the
Adherents.-- Paragraph (1) does not apply with              rationale and circumstances which led the President to
respect to--                                                apply the waiver.

       (A) any export, transfer, or trading activity that      (6) Additional Waiver.-- The President may
is authorized by the laws of an MTCR adherent, if           waive the imposition of sanctions under paragraph (1)
such    authorization     is     not     obtained     by    on a person with respect to a product or service if the
misrepresentation or fraud; or                              President certifies to the Congress that--

       (B) any export, transfer, or trade of an item to            (A) the product or service is essential to the
an end-user in a country that is an MTCR adherent           national security of the United States; and

    (3) Effect of Enforcement Actions by MTCR                      (B) such person is a sole source supplier of the
Adherents.-- Sanctions set forth in paragraph (1)           product or service, the product or service is not
may not be imposed under this subsection on a person        available from any alternative reliable supplier, and
with respect to acts described in such paragraph or, if     the need for the product or service cannot be met in a
such sanctions are in effect against a person on            timely manner by improved manufacturing processes
account of such acts, such sanctions shall be               or technological developments.
terminated, if an MTCR adherent is taking judicial or
other enforcement action against that person with               (7) Exceptions.-- The President shall not apply
respect to such acts, or that person has been found by      the sanction under this subsection under this
the government of an MTCR adherent to be innocent           subsection prohibiting the importation of the products
of wrongdoing with respect to such acts.                    of a foreign person--

   (4) Advisory Opinions.--      The Secretary, in                  (A) in the case of procurement of defense
consultation with the Secretary of State and the            articles or defense services--
Secretary of Defense, may, upon the request of any
person, issue an advisory opinion to that person as to               (i) under        existing    contracts     or
whether a proposed activity by that person would               subcontracts, including the exercise of options for

Export Administration Regulations                                                                   January 23, 2013
Legal Authority                                                                                                56

   production quantities to satisfy requirements           and Japan, announced on April 16, 1987, to restrict
   essential to the national security of the United        sensitive missile-relevant transfers based on the
   States;                                                 MTCR Annex, and any amendments thereto;
                                                               (3) the term “MTCR adherent” means a country
           (ii) if the President determines that the       that participates in the MTCR or that, pursuant to an
   person to which the sanctions would be applied is a     international understanding to which the United States
   sole source supplier of the defense articles and        is a party, controls MTCR equipment or technology in
   services, that the defense articles or services are     accordance with the criteria and standards set forth in
   essential to the national security of the United        the MTCR;
   States, and that alternative sources are not readily
   or reasonably available; or                                 (4) the term “MTCR Annex” means the
                                                           Guidelines and Equipment and Technology Annex of
           (iii) if the President determines that such     the MTCR, and any amendments thereto;
   articles or services are essential to the national
   security of the United States under defense                 (5) the terms “missile equipment or technology”
   coproduction agreements or NATO Programs of             and “MTCR equipment or technology” mean those
   Cooperation;                                            items listed in category I or category II of the MTCR
                                                           Annex;
       (B) to products or services provided under
contracts entered into before the date on which the           (6) the term “foreign person” means any person
President publishes his intention to impose the            other than a United States person;
sanctions; or
                                                               (7) (A) the term “person” means a natural person
       (C) to--                                            as well as a corporation, business association,
                                                           partnership, society, trust, any other nongovernmental
           (i)    spare parts,                             entity, organization, or group, and any governmental
                                                           entity operating as a business enterprise, and any
         (ii) component parts, but not finished            successor of any such entity; and
   products, essential to United States products or
   production,                                                    (B) in the case of countries where it may be
                                                           impossible to identify a specific governmental entity
          (iii) routine services and maintenance of        referred to in subparagraph (A), the term “person”
   products, to the extent that alternative sources are    means--
   not readily or reasonably available, or
                                                                      (i) all activities of that government
          (iv)         information and technology             relating to the development or production of any
   essential to United States products or productions.        missile equipment or technology; and

(c) Definitions.-- For purposes of this section and                   (ii) all activities of that government
subsections (k) and (l) of section 6 [50 U.S.C. app.          affecting the development or production of
2405(k), (l)]--                                               aircraft, electronics, and space systems or
                                                              equipment; and
    (1) the term “missile” means a category I system
as defined in the MTCR Annex, and any other                   (8) the term “otherwise engaged in the trade of”
unmanned delivery system of similar capability, as         means, with respect to a particular export or transfer,
well as the specially designed production facilities for   to be a freight forwarder or designated exporting
these systems;)                                            agent, or a consignee or end- user of the item to be
                                                           exported or transferred.
   (2) the term “Missile Technology Control
Regime” or “MTCR” means the policy statement,
between the United States, the United Kingdom, the
Federal Republic of Germany, France, Italy, Canada,

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Legal Authority                                                                                                     57




            Section 11C.                                    for acts of international terrorism; or
     CHEMICAL AND BIOLOGICAL
                                                                   (C) any other foreign country, project, or entity
     WEAPONS PROLIFERATION                                  designated by the President for purposes of this
           SANCTIONS                                        section.

(a) Imposition of Sanctions.--                                 (3) Persons Against Which Sanctions are to be
                                                            Imposed.-- Sanctions shall be imposed pursuant to
    (1) Determination by the President.-- Except as         paragraph (1) on--
provided in subsection (b)(2), the President shall
impose both of the sanctions described in subsection               (A) the foreign person with respect to which the
(c) if the President determines that a foreign person,      President makes the determination described in that
on or after the date of the enactment of this section,      paragraph;
[December 4, 1991], has knowingly and materially
contributed--                                                      (B) any successor entity to that foreign person;

        (A) through the export from the United States              (C) any foreign person that is a parent or
of any goods or technology that are subject to the          subsidiary of that foreign person if that parent or
jurisdiction of the United States under this Act, or        subsidiary knowingly assisted in the activities which
                                                            were the basis of that determination; and
        (B) through the export from any other country
of any goods or technology that would be, if they were              (D) any foreign person that is an affiliate of that
United States goods or technology, subject to the           foreign person if that affiliate knowingly assisted in
jurisdiction of the United States under this Act,           the activities which were the basis of that
                                                            determination and if that affiliate is controlled in fact
to the efforts by any foreign country, project, or entity   by that foreign person.
described in paragraph (2) to use, develop, produce,
stockpile, or otherwise acquire chemical or biological      (b) Consultations with and Actions by Foreign
weapons.                                                    Government of Jurisdiction.--

   (2) Countries, Projects, or Entities Receiving               (1) Consultations.-- If the President makes the
Assistance.                                                 determination described in subsection (a)(1) with
Paragraph (1) applies in the case of--                      respect to a foreign person, the Congress urges the
                                                            President to initiate consultation immediately with the
      (A) any foreign country that the President            government with primary jurisdiction over that
determines has, at any time after January 1, 1980--         foreign person with respect to the imposition of
                                                            sanctions pursuant to this section.
           (i) used chemical or biological weapons
   in violation of international law;                          (2) Actions by Government of Jurisdiction.-- In
                                                            order to pursue such consultations with that
         (ii) used lethal chemical or biological            government, the President may delay the imposition of
   weapons against its own nationals; or                    sanctions pursuant to this section for a period of up to
                                                            90 days. Following these consultations, the President
         (iii) made substantial preparations to             shall impose sanctions unless the President determines
   engage in the activities described in clause (i) or      and certifies to the Congress that that government has
   (ii);                                                    taken specific and effective actions, including
                                                            appropriate penalties, to terminate the involvement of
       (B) any foreign country whose government is          the foreign person in the activities described in
determined for purposes of section 6(j) of this Act to      subsection (a)(1). The President may delay the
be a government that has repeatedly provided support        imposition of sanction for an additional period of up to

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90 days if the President determines and certifies to the
Congress that that government is in the process of                (B) to product or services provided under
taking the actions described in the preceding sentence.    contracts entered into before the date of which the
                                                           President publishes his intention to impose sanctions;
   (3) Report to Congress.-- The President shall
report to the Congress, not later than 90 days after              (C) to--
making a determination under subsection (a)(1), on
the status of consultations with the appropriate                      (i)    spare parts,
government under this subsection, and the basis for
any determination under paragraph (2) of this                       (ii) component parts, but not finished
subsection that such government has taken specific            products, essential to United States products or
corrective actions.                                           production, or

(c) Sanctions.--                                                     (iii) routine servicing and maintenance of
                                                              products, to the extent that alternative sources are
    (1) Description of Sanctions.-- The sanctions to          not readily or reasonably available;
be imposed pursuant to subsection (a)(1) are, except as
provided in paragraph (2) of this subsection, the                 (D) to information and technology essential to
following:                                                 United States products or production; or

       (A) Procurement Sanction.--       The United               (E) to medical or other humanitarian items.
States Government shall not procure, or enter into any
contract for the procurement of, any goods or services     (d) Termination of Sanctions.--         The sanctions
from any person described in subsection (a)(3).            imposed pursuant to this section shall apply for a
                                                           period of at least 12 months following the imposition
       (B) Import Sanctions.-- The importation into        of sanctions and shall cease to apply thereafter only if
the United States of products produced by any person       the President determines and certifies to the Congress
described in subsection (a)(3) shall be prohibited.        that reliable information indicates that the foreign
                                                           person with respect to which the determination was
    (2) Exceptions.-- The President shall not be           made under subsection (a)(1) has ceased to aid or abet
required to apply or maintain sanctions under this         any foreign government, project, or entity in its efforts
sectionB                                                   to acquire chemical or biological weapons capability
                                                           as described in that subsection.
        (A) in the case of procurement of defense
articles or defense services--                             (e) Waiver.--

          (i) under       existing    contracts     or         (1) Criterion for Waiver.-- The President may
   subcontracts, including the exercise of options for     waive the application of any sanction imposed on any
   production quantities to satisfy United States          person pursuant to this section, after the end of the
   operational military requirements;                      12-month period beginning on the date on which that
                                                           sanction was imposed on that person, if the President
           (ii) if the President determines that the       determines and certifies to the Congress that such
   person or other entity to which the sanctions would     waiver is important to the national security interests of
   otherwise be applied is a sole source supplier of       the United States.
   the defense articles or services, that the defense
   articles or services are essential, and that                (2) Notification of and Report to Congress.-- If
   alternative sources are not readily or reasonably       the President decides to exercise the waiver authority
   available; or                                           provided in paragraph (1), the President shall so notify
                                                           the Congress not less than 20 days before the waiver
           (iii) if the President determines that such     takes effect. Such notification shall include a report
   articles or services are essential to the national      fully articulating the rationale and circumstances
   security under defense coproduction agreements;         which led the President to exercise the waiver

Export Administration Regulations                                                                 January 23, 2013
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authority.                                                   the Secretary (and officers or employees of the
                                                             Department of Commerce designated by the
(f) Definition of Foreign Person.-- For purposes of          Secretary) may conduct, outside the United States,
this section, the term “foreign person” means--              pre-license    investigations   and    post-shipment
                                                             verifications of items licensed for export, and
    (1) an individual who is not a citizen of the United     investigations in the enforcement of Section 8 of this
States or an alien admitted for permanent residence to       Act.
the United States; or
                                                                 (2) (A) Subject to subparagraph (B) of this
    (2) a corporation, partnership, or other entity          paragraph, the United States Customs Service is
which is created or organized under the laws of a            authorized, in the enforcement of this Act, to search,
foreign country or which has its principal place of          detain (after search), and seize goods or technology at
business outside the United States.                          those ports of entry or exit from the United States
                                                             where officers of the Customs Service are authorized
                                                             by law to conduct such searches, detention, and
                    Section 12.                              seizures, and at those places outside the United States
                  ENFORCEMENT                                where the Customs Service, pursuant to agreements or
                                                             other arrangements with other countries, is authorized
(a) General Authority.--                                     to perform enforcement activities.

    (1) To the extent necessary or appropriate to the               (B) An officer of the United States Customs
enforcement of this Act or to the imposition of any          Service may do the following in carrying out
penalty, forfeiture, or liability arising under the Export   enforcement authority under this Act:
Control Act of 1949 or the Export Administration Act
of 1969, the head of any department or agency                           (i) Stop, search, and examine a vehicle,
exercising any function thereunder (and officers or             vessel, aircraft, or person on which or whom such
employees of such department or agency specifically             officer has reasonable cause to suspect there are
designated by the head thereof) may make such                   any goods or technology that has been, is being, or
investigations within the United States, and the                is about to be exported from the United States in
Commissioner of Customs (and officers or employees              violation of this Act.
of the United States Customs Service specifically
designated by the Commissioner) may make such                           (ii) Search any package or container in
investigations outside of the United States, and the            which such officer has reasonable cause to suspect
head of such department or agency (and such officers            there are any goods or technology that has been, is
or employees) may obtain such information from,                 being, or is about to be exported from the United
require such reports or the keeping of such records by,         States in violation of this Act.
make such inspection of the books, records, and other
writings, premises, or property of, and take the sworn                 (iii) Detain (after search) or seize and
testimony of, any person. In addition, such officers            secure for trial any goods or technology on or
or employees may administer oaths or affirmations,              about such vehicle, vessel, aircraft, or person, or in
and may by subpoena require any person to appear and            such package or container, if such officer has
testify or to appear and produce books, records, and            probable cause to believe the goods or technology
other writings, or both, and in the case of contumacy           has been, is being, or is about to be exported from
by, or refusal to obey a subpoena issued to, any such           the United States in violation of this Act.
person, a district court of the United States, after
notice to any such person and hearing, shall have                       (iv) Make arrests without warrant for any
jurisdiction to issue an order requiring such person to         violation of this Act committed in his or her
appear and give testimony or to appear and produce              presence or view or if the officer has probable
books, records, and other writings, or both, and any            cause to believe that the person to be arrested has
failure to obey such order of the court may be                  committed or is committing such a violation.
punished by such court as a contempt thereof. In
addition to the authority conferred by this paragraph,       The arrest authority conferred by clause (iv) of this

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subparagraph is in addition to any arrest authority            (4) The authorities first conferred by the Export
under other laws. The Customs Service may not               Administration Amendments Act of 1985 under
detain for more than 20 days any shipment of goods or       paragraph (3) shall be exercised pursuant to guidelines
technology eligible for export under a general license      approved by the Attorney General. Such guidelines
under section 4(a)(3). In a case in which such              shall be issued not later than 120 days after the date of
detention is on account of a disagreement between the       the enactment of the Export Administration
Secretary and the head of any other department or           Amendments Act of 1985.
agency with export license authority under other
provisions of law concerning the export license                (5) All cases involving violations of this Act shall
requirements for such goods or technology, such             be referred to the Secretary for purposes of
disagreement shall be resolved within that 20-day           determining civil penalties and administrative
period. At the end of that 20-day period, the Customs       sanctions under Section 11(c) of this Act, or to the
Service shall either release the goods or technology, or    Attorney General for criminal action in accordance
seize the goods or technology as authorized by other        with this Act.
provisions of law.
                                                                (6) Notwithstanding any other provision of law,
    (3) (A) Subject to subparagraph (B) of this             the United States Customs Service may expend in the
paragraph, the Secretary shall have the responsibility      enforcement of export controls under this Act not
for the enforcement of Section 8 of this Act and, in the    more than $12,000,000 in the fiscal year 1985 and not
enforcement of the other provisions of this Act, the        more than $14,000,000 in the fiscal year 1986.
Secretary is authorized to search, detain (after search),
and seize goods or technology at those places within            (7) Not later than 90 days after the date of the
the United States other than those ports specified in       enactment of the Export Administration Amendments
paragraph (2)(A) of this subsection. The search,            Act of 1985, the Secretary, with the concurrence of the
detention (after search), or seizure of goods or            Secretary of the Treasury, shall publish in the Federal
technology at those ports and places specified in           Register procedures setting forth, in accordance with
paragraph (2)(A) may be conducted by officers or            this subsection, the responsibilities of the Department
employees of the Department of Commerce                     of Commerce and the United States Customs Service
designated by the Secretary with the concurrence of         in the enforcement of this Act. In addition, the
the Commissioner of Customs or a person designated          Secretary, with the concurrence of the Secretary of the
by the commissioner.                                        Treasury, may publish procedures for the sharing of
                                                            information in accordance with subsection (c)(3) of
       (B) The Secretary may designate any employee         this section, and procedures for the submission to the
of the Office of Export Enforcement of the                  appropriate departments and agencies by private
Department of Commerce to do the following in               persons of information relating to the enforcement of
carrying out enforcement authority under this Act:          this Act.

           (i) Execute any warrant or other process             (8) For purposes of this section, a reference to the
   issued by a court or officer of competent                enforcement of this Act or to a violation of this Act
   jurisdiction with respect to the enforcement of the      includes a reference to the enforcement or a violation
   provisions of this Act.                                  of any regulation, order, or license issued under this
                                                            Act.
           (ii) Make arrests without warrant for any
   violation of this Act committed in his or her            (b) Immunity.-- No person shall be excused from
   presence or view, or if the officer or employee has      complying with any requirements under this section
   probable cause to believe that the person to be          because of his privilege against self-incrimination, but
   arrested has committed or is committing such a           the immunity provisions of section 6002 of title 18,
   violation.                                               United States Code, shall apply with respect to any
                                                            individual who specifically claims such privilege.
           (iii) Carry firearms in carrying out any
   activity described in clause (i) or (ii).                (c) Confidentiality.--


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     (1) Except as otherwise provided by the third        the United States or to any officer or employee of the
sentence of section 8(b)(2) and by section 11(c)(2)(C)    General Accounting Office who is authorized by the
of this Act, information obtained under this Act on or    Comptroller General to have access to such
before June 30, 1980, which is deemed confidential,       information. No officer or employee of the General
including Shippers' Export Declarations, or with          Accounting Office shall disclose, except to the
reference to which a request for confidential treatment   Congress in accordance with this paragraph, any such
is made by the person furnishing such information,        information which is submitted on a confidential basis
shall be exempt from disclosure under section 552 of      and from which any individual can be identified.
title 5, United States Code, and such information shall
not be published or disclosed unless the Secretary            (3) Any department or agency which obtains
determines that the withholding thereof is contrary to    information which is relevant to the enforcement of
the national interest. Information obtained under this    this Act, including information pertaining to any
Act after June 30, 1980, may be withheld only to the      investigation, shall furnish such information to each
extent permitted by statute, except that information      department       or    agency     with      enforcement
obtained for the purpose of consideration of, or          responsibilities under this Act to the extent consistent
concerning, license applications under this Act shall     with        the     protection      of      intelligence,
be withheld from public disclosure unless the release     counterintelligence, and law enforcement sources,
of such information is determined by the Secretary to     methods, and activities. The provisions of this
be in the national interest.       Enactment of this      paragraph shall not apply to information subject to the
subsection shall not affect any judicial proceeding       restrictions set forth in section 9 of title 13, United
commenced under section 552 of title 5, United States     States Code; and return information, as defined in
Code, to obtain access to boycott reports submitted       subsection (b) of section 6103 of the Internal Revenue
prior to October 31, 1976, which was pending on May       Code of 1986 (26 U.S.C. 6103(b)), may be disclosed
15, 1979; but such proceeding shall be continued as if    only as authorized by such section. The Secretary
this Act had not been enacted.                            and the Commissioner of Customs, upon request, shall
                                                          exchange any licensing and enforcement information
    (2) Nothing in this Act shall be construed as         with each other which is necessary to facilitate
authorizing the withholding of information from the       enforcement efforts and effective license decisions.
Congress, or from the General Accounting Office.          The Secretary, the Attorney General, and the
All information obtained at any time under this Act or    Commissioner of Customs shall consult on a
previous Acts regarding the control of exports,           continuing basis with one another and with the head of
including any report or license application required      other departments and agencies which obtain
under this Act, shall be made available to any            information subject to this paragraph, in order to
committee or subcommittee of Congress of                  facilitate the exchange of such information.
appropriate jurisdiction upon request of the chairman
or ranking minority member of such committee or           (d) Reporting Requirements.-- In the administration
subcommittee. No such committee or subcommittee,          of this Act, reporting requirements shall be so
or member thereof, shall disclose any information         designed as to reduce the cost of reporting,
obtained under this Act or previous Acts regarding the    recordkeeping, and export documentation required
control of exports which is submitted on a confidential   under this Act to the extent feasible consistent with
basis unless the full committee determines that the       effective enforcement and compilation of useful trade
withholding of that information is contrary to the        statistics.    Reporting, recordkeeping and export
national interest. Notwithstanding paragraph (1) of       documentation requirements shall be periodically
this subsection, information referred to in the second    reviewed and revised in the light of developments in
sentence of this paragraph shall, consistent with the     the field of information technology.
protection of intelligence, counterintelligence, and
law enforcement sources, methods, and activities, as      (e) Simplification of Regulations.-- The Secretary,
determined by the agency that originally obtained the     in consultation with appropriate United States
information, and consistent with the provisions of        Government departments and agencies and with
section 3l3 of the Budget and Accounting Act, 1921        appropriate technical advisory committees established
(31 U.S.C. 716), be made available only by that           under section 5(h), shall review the regulations issued
agency, upon request, to the Comptroller General of       under this Act and the commodity control list in order

Export Administration Regulations                                                                January 23, 2013
Legal Authority                                                                                                 62

to determine how compliance with the provisions of          days after receiving the decision. The order of the
this Act can be facilitated by simplifying such             Secretary shall be final and is not subject to judicial
regulations, by simplifying or clarifying such list, or     review, except as provided in paragraph (3).
by any other means.
                                                               (2) The proceedings described in paragraph (1)
                                                            shall be concluded within a period of 1 year after the
           Section 13.                                      complaint is submitted, unless the administrative law
ADMINISTRATIVE PROCEDURE AND                                judge extends such period for good cause shown.
       JUDICIAL REVIEW                                          (3) The order of the Secretary under paragraph (1)
                                                            shall be final, except that the charged party may,
                                                            within 15 days after the order is issued, appeal the
(a) Exemption.-- Except as provided in section 1-           order in the United States Court of Appeals for the
1(c)(2) and subsection (c) of this section, the functions   District of Columbia, which shall have jurisdiction of
exercised under this Act are excluded from the              the appeal. The court may, while the appeal is
operation of sections 551, 553 through 559, and 701         pending, stay the order of the Secretary. The court
through 706 of title 5, United States Code.                 may review only those issues necessary to determine
                                                            liability for the civil penalty or other sanction
(b) Public Participation.-- It is the intent of the         involved. In an appeal filed under this paragraph, the
Congress that, to the extent practicable, all regulations   court shall set aside any finding of fact for which the
imposing controls on exports under this Act be issued       court finds there is not substantial evidence on the
in proposed form with meaningful opportunity for            record and any conclusion of law which the court finds
public comment before taking effect. In cases where         to be arbitrary, capricious, an abuse of discretion, or
a regulation imposing controls under this Act is issued     otherwise not in accordance with law.
with immediate effect, it is the intent of the Congress
that meaningful opportunity for public comment also             (4) An administrative law judge referred to in this
be provided and that the regulation be reissued in final    subsection shall be appointed by the Secretary from
form after public comments have been fully                  among those considered qualified for selection and
considered.                                                 appointment under Section 3105 of Title 5, United
                                                            States Code. Any person who, for at least 2 of the 10
(c) Procedures Relating to Civil Penalties and              years immediately preceding the date of the enactment
Sanctions.--                                                of the Export Administration Amendments Act of
                                                            1985, has served as a hearing commissioner of the
    (1) In any case in which a civil penalty or other       Department of Commerce shall be included among
civil sanction (other than a temporary denial order or a    those considered as qualified for selection and
penalty or sanction for a violation of Section 8) is        appointment to such position.
sought under Section 11 of this Act, the charged party
is entitled to receive a formal complaint specifying the    (d) Imposition of Temporary Denial Orders.--
charges and, at his or her request, to contest the
charges in a hearing before an administrative law               (1) In any case in which it is necessary, in the
judge. Subject to the provisions of this subsection,        public interest, to prevent an imminent violation of
any such hearing shall be conducted in accordance           this Act or any regulation, order, or license issued
with Sections 556 and 557 of Title 5, United States         under this Act, the Secretary may, without a hearing,
Code. With the approval of the administrative law           issue an order temporarily denying United States
judge, the Government may present evidence in               export privileges (hereinafter in this subsection
camera in the presence of the charged party or his or       referred to as a “temporary denial order”) to a person.
her representative.          After the hearing, the         A temporary denial order may be effective no longer
administrative law judge shall make findings of fact        than 180 days unless renewed in writing by the
and conclusions of law in a written decision, which         Secretary for additional 180-day periods in order to
shall be referred to the Secretary. The Secretary           prevent such an imminent violation, except that a
shall, in a written order, affirm, modify, or vacate the    temporary denial order may be renewed only after
decision of the administrative law judge within 30          notice and an opportunity for a hearing is provided.

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                                                           who shall either affirm or vacate the determination in a
    (2) A temporary denial order shall define the          written decision within 30 days after receiving the
imminent violation and state why the temporary denial      determination. The Secretary's written decision shall
order was granted without a hearing. The person or         be final and is not subject to judicial review. Subject
persons subject to the issuance or renewal of a            to the limitations provided in Section 12(c) of this Act,
temporary denial order may file an appeal of the           the Secretary's decision shall be published in the
issuance or renewal of the temporary denial order with     Federal Register.
an administrative law judge who shall, within 10
working days after the appeal is filed, recommend that
the temporary denial order be affirmed, modified or                         Section 14.
vacated. Parties may submit briefs and other material                    ANNUAL REPORT
to the judge.         The recommendation of the
administrative law judge shall be submitted to the         (a) Contents.-- Not later than December 31 of each
Secretary who shall either accept, reject, or modify the   year, the Secretary shall submit to the Congress a
recommendation by written order within 5 working           report on the administration of this Act during the
days after receiving the recommendation. The               preceding fiscal year. All agencies shall cooperate
written order of the Secretary under the preceding         fully with the Secretary in providing information for
sentence shall be final and is not subject to judicial     such report. Such report shall include detailed
review except as provided in paragraph (3). The            information with respect to--
temporary denial order shall be affirmed only if it is
reasonable to believe that the order is required in the        (1) the implementation of the policies set forth in
public interest to prevent an imminent violation of this   section 3;
Act or any regulation, order, or license issued under
this Act.        All materials submitted to the               (2) general licensing activities under sections 5, 6,
administrative law judge and the Secretary shall           and 7, and any changes in the exercise of the
constitute the administrative record for purposes of       authorities contained in sections 5(a), 6(a), and 7(a);
review by the courts.
                                                              (3) the results of the review of United States policy
    (3) An order of the Secretary affirming, in whole      toward individual countries pursuant to section 5(b);
or in part, the issuance of a temporary denial order
may, within 15 days after the order is issued, be              (4) the results, in as much detail as may be
appealed by a person subject to the order to the United    included consistent with the national security and the
States Court of Appeals for the District of Columbia       need to maintain the confidentiality of proprietary
Circuit, which shall have jurisdiction of the appeal.      information, of the actions, including reviews and
The court may review only those issues necessary to        revisions of export controls maintained for national
determine whether the standard for issuing the             security purposes, required by section 5(c)(3);
temporary denial order has been met. The court shall
vacate the Secretary's order if the court finds that the      (5) actions taken to carry out section 5(d);
Secretary's order is arbitrary, capricious, an abuse of
discretion, or otherwise not in accordance with law.          (6) changes in categories of items under export
                                                           control referred to in section 5(e);
(e) Appeals from License Denials.--                  A
determination of the Secretary, under Section 10(f) of        (7) determinations of foreign availability made
this Act, to deny a license may be appealed by the         under section 5(f), the criteria used to make such
applicant to an administrative law judge who shall         determinations, the removal of any export controls
have the authority to conduct proceedings to               under such section, and any evidence demonstrating a
determine only whether the item sought to be exported      need to impose export controls for national security
is in fact on the control list. Such proceedings shall     purposes notwithstanding foreign availability;
be conducted within 90 days after the appeal is filed.
Any determination by an administrative law judge               (8) actions taken in compliance with section
under this and all materials filed before such judge in    5(f)(6);
the proceedings shall be reviewed by the Secretary,

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    (9) the operation of the indexing system under          the policies of this Act, including the results of the
section 5(g);                                               review required by section 12(d), and any action
                                                            taken, on the basis of the review required by section
   (10) consultations with the technical advisory           12(e), to simplify regulations issued under this Act;
committees established pursuant to section 5(h), the
use made of the advice rendered by such committees,            (19) violations under section 11                  and
and the contributions of such committees toward             enforcement activities under section 12; and
implementing the policies set forth in this Act;
                                                               (20) the issuance of regulations under the
    (11) the effectiveness of export controls               authority of this Act, including an explanation of each
imposed under section 6 in furthering the foreign           case in which regulations were not issued in
policy of the United States;                                accordance with the first sentence of section 13(b).

    (12) export controls and monitoring under               (b) Report on Certain Export Controls.-- To the
section 7;                                                  extent that the President determines that the policies
                                                            set forth in section 3 of this Act require the control of
    (13) the information contained in the reports           the export of goods and technology other than those
required by section 7(b)(2), together with an analysis      subject to multilateral controls, or require more
of--                                                        stringent controls than the multilateral controls, the
                                                            President shall include in each annual report the
       (A) the impact on the economy and world trade        reasons for the need to impose, or to continue to
of shortages or increased prices for commodities            impose, such controls and the estimated domestic
subject to monitoring under this Act or section 812 of      economic impact on the various industries affected by
the Agricultural Act of 1970 (7 U.S.C. 612c-3);             such controls.

       (B) the worldwide supply of such commodities;        (c) Report on Negotiations.-- The President shall
and                                                         include in each annual report a detailed report on the
                                                            progress of the negotiations required by section 5(i),
       (C) actions being taken by other countries in        until such negotiations are concluded.
response to such shortages or increased prices;
                                                            (d) Report on Exports to Controlled Countries.-- The
    (14) actions taken by the President and the             Secretary shall include in each annual report a detailed
Secretary to carry out the antiboycott policies set forth   report which lists every license for exports to
in section 3(5) of this Act;                                controlled countries which was approved under this
                                                            Act during the preceding fiscal year. Such report
    (15) organizational and procedural changes              shall specify to whom the license was granted, the
undertaken in furtherance of the policies set forth in      type of goods or technology exported, and the country
this Act, including changes to increase the efficiency      receiving the goods or technology. The information
of the export licensing process and to fulfill the          required by this subsection shall be subject to the
requirements of section 10, including an accounting of      provisions of Section 12(c) of this Act.
appeals received, court orders issued, and actions
taken pursuant thereto under subsection (j) of such         (e) Report on Domestic Economic Impact of Exports
section;                                                    to Controlled Countries.--      The Secretary shall
                                                            include in each annual report a detailed description of
   (16) delegations of authority by the President as        the extent of injury to United States industry and the
provided in section 4(e) of this Act;                       extent of job displacement caused by United States
                                                            exports of goods and technology to controlled
   (17) efforts to keep the business sector of the          countries. The annual report shall also include a full
Nation informed with respect to policies and                analysis of the consequences of exports of turnkey
procedures adopted under this Act;                          plants and manufacturing facilities to controlled
                                                            countries which are used by such countries to produce
   (18)    any reviews undertaken in furtherance of         goods for export to the United States or to compete

Export Administration Regulations                                                                  January 23, 2013
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with United States products in export markets.            of State, such other departments or agencies as the
                                                          Secretary considers appropriate, and the appropriate
(f) Annual Report of the President.-- The President       technical advisory committee.         The preceding
shall submit an annual report to the Congress             sentence does not require the concurrence or approval
estimating the additional defense expenditures of the     of any official, department, or agency to which such
United States arising from illegal technology             regulations are submitted.
transfers, focusing on estimated defense costs arising
from illegal technology transfers, focusing on            (c) Amendments to Regulations.-- If the Secretary
estimated defense costs arising from illegal              proposes to amend regulations issued under this Act,
technology transfers that resulted in a serious adverse   the Secretary shall report to the Committee on
impact on the strategic balance of forces. These          Banking, Housing, and Urban Affairs of the Senate
estimates shall be based on assessment by the             and the Committee on International Relations of the
intelligence community of any technology transfers        House of Representatives on the intent and rationale of
that resulted in such serious adverse impact. This        such amendments. Such report shall evaluate the
report may have a classified annex covering any           cost and burden to the United States exporters of the
information of a sensitive nature.                        proposed amendments in relation to any enhancement
                                                          of licensing objectives. The Secretary shall consult
                                                          with the technical advisory committees authorized
              Section 15.                                 under Section 5(h) of this Act in formulating or
         ADMINISTRATIVE AND                               amending regulations issued under this Act. The
                                                          procedures defined by regulations in effect on January
       REGULATORY AUTHORITY                               1, 1984, with respect to Sections 4 and 5 of this Act,
                                                          shall remain in effect unless the Secretary determines,
(a) Under Secretary of Commerce.-- The President          on the basis of substantial and reliable evidence, that
shall appoint, by and with the advice and consent of      specific change is necessary to enhance the prevention
the Senate, an Under Secretary of Commerce for            of diversions of exports which would prove
Export Administration who shall carry out all             detrimental to the national security of the United
functions of the Secretary under this Act and such        States or to reduce the licensing and paperwork burden
other statutes that relate to national security which     on exporters and their distributors.
were delegated to the office of the Assistant Secretary
of Commerce for Trade Administration before the
date of the enactment of the Export Administration
Amendments Act of 1985 [July 12, 1985], and such                            Section 16.
other functions under this Act which were delegated to                     DEFINITIONS
such office before such date of enactment, as the
Secretary may delegate. The President shall appoint,      As used in this Act--
by and with the advice and consent of the Senate, two
Assistant Secretaries of Commerce to assist the Under         (1) the term “person” includes the singular and the
Secretary in carrying out such functions.                 plural and any individual, partnership, corporation, or
                                                          other form of association, including any government
(b) Issuance of Regulations.-- The President and the      or agency thereof;
Secretary may issue such regulations as are necessary
to carry out the provisions of this Act. Any such             (2) the term “United States person” means any
regulations issued to carry out the provisions of         United States resident or national (other than an
Section 5(a), 6(a), 7(a), or 8(b) may apply to            individual resident outside the United States and
financing, transporting, or other servicing of exports    employed by other than a United States person), any
and the participation therein by any person. Any          domestic concern (including any permanent domestic
such regulations the purpose of which is to carry out     establishment of any foreign concern) and any foreign
the provisions of Section 5, or of Section 4(a) for the   subsidiary or affiliate (including any permanent
purpose of administering the provisions of Section 5,     foreign establishment) of any domestic concern which
may be issued only after the regulations are submitted    is controlled in fact by such domestic concern, as
for review to the Secretary of Defense, the Secretary     determined under regulations of the President;


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   (3) the term “good” means any article, natural or
manmade substance, material, supply or manufactured        (b) Coordination of Controls.--       The authority
product, including inspection and test equipment, and      granted to the President under this Act shall be
excluding technical data;                                  exercised in such manner as to achieve effective
                                                           coordination with the authority exercised under
    (4) the term “technology” means the information        section 38 of the Arms Export Control Act (22 U.S.C.
and know-how (whether in tangible form, such as            2778).
models, prototypes, drawings, sketches, diagrams,
blueprints, or manuals, or in intangible form, such as     (c) Civil Aircraft Equipment.-- Notwithstanding any
training or technical services) that can be used to        other provision of law, any product (1) which is
design, produce, manufacture, utilize, or reconstruct      standard equipment, certified by the Federal Aviation
goods, including computer software and technical           Administration, in civil aircraft and is an integral part
data, but not the goods themselves;                        of such aircraft, and (2) which is to be exported to a
                                                           country other than a controlled country, shall be
   (5) the term “export” means-                            subject to export controls exclusively under this Act.
                                                           Any such product shall not be subject to controls
        (A) an actual shipment, transfer, or               under section 38(b)(2) of the Arms Export Control Act
transmission of goods or technology out of the United      (22 U.S.C. 2778(b)(2)).
States;
                                                           (d) Nonproliferation Controls.--
       (B) a transfer of goods or technology in the
United States to an embassy or affiliate of a controlled       (1) Nothing in section 5 or 6 of this Act shall be
country; or                                                construed to supersede the procedures published by
                                                           the President pursuant to section 309(c) of the Nuclear
        (C) a transfer to any person of goods or           Non-Proliferation Act of 1978 (42 U.S.C. 2139a(c)).
technology either within the United States or outside
of the United States with the knowledge or intent that         (2) With respect to any export license application
the goods or technology will be shipped, transferred,      which, under the procedures published by the
or transmitted to an unauthorized recipient.               President pursuant to section 309(c) of the Nuclear
                                                           Non-Proliferation Act of 1978 (42 U.S.C. 2139a(c)),
   (6) the term “controlled country” means a               is referred to the Subgroup on Nuclear Export
controlled country under Section 5(b)(1) of this Act;      Coordination or other interagency group, the
                                                           provisions of section 10 of this Act shall apply with
    (7) the term “United States” means the States of       respect to such license application only to the extent
the United States, the District of Columbia, and any       that they are consistent with such published
commonwealth, territory, dependency, or possession         procedures, except that if the processing of any such
of the United States, and includes the Outer               application under such procedures is not completed
Continental Shelf, as defined in Section 2(a) of the       within 180 days after the receipt of the application by
Outer Continental Shelf Lands Act (43 U.S.C.               the Secretary, the applicant shall have the rights of
1331(a)); and                                              appeal and court action provided in section 10(j) of
                                                           this Act.
  (8) the term “Secretary” means the Secretary of
Commerce.                                                  (e) Termination of Other Authority.-- On October 1,
                                                           1979, the Mutual Defense Assistance Control Act of
              Section 17.                                  1951 (22 U.S.C. 1611-1613(d)), is superseded.
        EFFECT ON OTHER ACTS
                                                           (f) Agricultural Act of 1970.-- Nothing in this Act
(a) In General.-- Except as otherwise provided in          shall affect the provisions of the last sentence of
this Act, nothing contained in this Act shall be           Section 812 of the Agricultural Act of 1970 (7 U.S.C.
construed to modify, repeal, supersede, or otherwise       612c-3).
affect the provisions of any other laws authorizing
control over exports of any commodity.

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                Section 18.                                                   Section 19.
            AUTHORIZATION OF                                               EFFECTIVE DATE
             APPROPRIATIONS
                                                           Effective Date.-- This Act shall take effect upon the
(a) Requirement of Authorizing Legislation.--              expiration of the Export Administration Act of 1969.

    (1) Notwithstanding any other provision of law,
money appropriated to the Department of Commerce                             Section 20.
for expenses to carry out the purposes of this Act may                   TERMINATION DATE
be obligated or expended only if--

       (A) the appropriation thereof has been              The authority granted by this Act terminates on
previously authorized by law enacted on or after the       August 20, 2001.9
date of the enactment of the Export Administration
Amendments Act of 1985 [July 12, 1985]; or
                                                                              Section 21.
       (B) the amount of all such obligations and
expenditures does not exceed an amount previously                        SAVINGS PROVISIONS
prescribed by law enacted on or after such date.
                                                           (a) In General.-- All delegations, rules, regulations,
    (2) To the extent that legislation enacted after the   orders, determinations, licenses, or other forms of
making of an appropriation to carry out the purposes       administrative action which have been made, issued,
of this Act authorizes the obligation or expenditure       conducted, or allowed to become effective under the
thereof, the limitation contained in paragraph (1) shall   Export Control Act of 1949 or the Export
have no effect.                                            Administration Act of 1969 and which are in effect at
                                                           the time this Act takes effect shall continue in effect
    (3) The provisions of this subsection shall not be     according to their terms until modified, superseded,
superseded except by a provision of law enacted after      set aside, or revoked under this Act.
the date of the enactment of the Export Administration
Amendments Act of 1985 [July 12, 1985] which               (b) Administrative Proceedings.-- This Act shall not
specifically repeals, modifies, or supersedes the          apply to any administrative proceedings commenced
provisions of this subsection.                             or any application for a license made, under the Export
                                                           Administration Act of 1969, which is pending at the
(b) Authorization.-- There are authorized to be            time this Act takes effect [September 30, 1979].
appropriated to the Department of Commerce to carry
out the purposes of this Act--

   (1) $42,813,000 for the fiscal year 1993;

    (2) such sums as may be necessary for the fiscal
year 1994; and
    (3) such additional amounts, for each such fiscal
year, as may be necessary for increases in salary, pay,
retirement, other employee benefits authorized by law,
and other nondiscretionary costs.
                                                                     9
                                                                        Pub. L. 106-508 (November 13, 2000) replaced
                                                           “August 20, 1994” with “August 20, 2001.” The Act lapsed
                                                           on August 20, 2001 and the President, through Executive
                                                           Order 13222 of August 17, 2001 (66 Fed. Reg. 44025
                                                           (August 22, 2001)), has continued the Regulations in effect
                                                           under the International Emergency Economic Powers Act.


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Part I.2. International Emergency Economic Powers Act, as amended10

   Statutory Citations ............................................................................................................................................... 69

   Section 201 Short Title ...................................................................................................................................... 69

   Section 202 Situations in Which Authorities May be Exercised ................................................................... 69

   Section 203 Grant of Authorities...................................................................................................................... 69

   Section 204 Consultation and Reports. ............................................................................................................ 71

   Section 205 Authority to Issue Regulations. .................................................................................................... 71

   Section 206 Penalties. ........................................................................................................................................ 71

   Section 207 Savings Provision. ......................................................................................................................... 72

   Section 208 Severability .................................................................................................................................... 72




          10
               The last amendment was made on October 16, 2007 (Pub. L. 110-96 (121 Stat. 1011)).


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                                                     #######

            STATUTORY CITATIONS

International Emergency Economic Powers Act of
1977, Pub. L. 95-223, 91 Stat. 1626, as amended by:        Section 203                        GRANT              OF
                                                           AUTHORITIES11
 Pub. L. 100-418, Section 2502(b)(1)
                                                           (a) (1) At the times and to the extent specified in
 Pub. L. 102-393, Section 629                             section 202, the President may, under such regulations
                                                           as he may prescribe, by means of instructions, license,
 Pub. L. 102-396, Section 9155                            or otherwise --

                                                                  (A) investigate, regulate, or prohibit --
 Pub. L. 103-236, Section 525(c)(1) (“Free Trade in
  Ideas”)
                                                                      (i) any transactions in foreign exchange,
 Pub. L. 104-201, Section 1422
                                                                      (ii) transfers of credit or payments between,
                                                                  by, through, or to any banking institution, to
 Pub. L. 107-56, Section 106                                     the extent that such transfers or payments
                                                                  involve any interest of any foreign country or a
 Pub. L. 109-177, Section 402                                    national thereof,

                                                                      (iii) the importing or exporting of currency
                             #######
                                                                  or securities,

                                                                  by any person, or with respect to any property,
        Section 201 SHORT TITLE                                   subject to the jurisdiction of the United States.
This title may be cited as the “International                       (B) investigate, block during the pendency
Emergency Economic Powers Act.”                                of an investigation, regulate, direct and compel,
                                                               nullify, void, prevent or prohibit, any acquisition,
                                                               holding, withholding, use, transfer, withdrawal,
Section 202 SITUATIONS IN WHICH                                transportation, importation or exportation of, or
AUTHORITIES MAY BE EXERCISED                                   dealing in, or exercising any right, power, or
                                                               privilege with respect to, or transactions involving,
(a) Any authority granted to the President by section          any property in which any foreign country or a
203 may be exercised to deal with any unusual and              national thereof has any interest by any person, or
extraordinary threat, which has its source in whole or         with respect to any property, subject to the
substantial part outside the United States, to the             jurisdiction of the United States; and
national security, foreign policy, or economy of the
United States, if the President declares a national                (C)      when the United States is engaged in
emergency with respect to such threat.                         armed hostilities or has been attacked by a foreign
                                                               country or foreign nationals, confiscate any
(b) The authorities granted to the President by section        property, subject to the jurisdiction of the United
203 may only be exercised to deal with an unusual and          States, of any foreign person, foreign organization,
extraordinary threat with respect to which a national          or foreign country that he determines has planned,
emergency has been declared for purposes of this title
and may not be exercised for any other purpose. Any                 11
exercise of such authorities to deal with any new threat                 Pub. L. 107-56, 106 (115 Stat. 277), amended
shall be based on a new declaration of national            subsections (a)(1) and (a)(1)(B), and added subsections
emergency which must be with respect to such threat.       (a)(1)(C) and (c).


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   authorized, aided, or engaged in such hostilities or
   attacks against the United States; and all right,             (1) any postal, telegraphic, telephonic, or other
   title, and interest in any property so confiscate         personal communication, which does not involve a
   shall vest, when, as, and upon the terms directed by      transfer of anything of value;
   the President, in such agency or person as the
   President may designate from time to time, and                (2) donations, by persons subject to the jurisdiction
   upon such terms and conditions as the President           of the United States, of articles, such as food, clothing,
   may prescribe, such interest or property shall be         and medicine, intended to be used to relieve human
   held, used, administered, liquidated, sold, or            suffering, except to the extent that the President
   otherwise dealt with in the interest and for the          determines that such donations
   benefit of the United States, and such designated
   agency or person may perform any and all acts                   (A) would seriously impair his ability to deal
   incident to the accomplishment of furtherance of          with any national emergency declared under section
   these purposes.                                           202 of this title,

    (2) In exercising the authorities granted by                   (B) are in response to coercion against the
paragraph (1), the President may require any person to       proposed recipient or donor, or
keep a full record of, and to furnish under oath, in the
form of reports or otherwise, complete information                   (C) would endanger Armed Forces of the
relative to any act or transaction referred to in            Unites States which are engaged in hostilities or are in
paragraph (1) either before, during, or after the            a situation where imminent involvement in hostilities
completion thereof, or relative to any interest in           is clearly indicated by the circumstances; or
foreign property, or relative to any property in which
any foreign country or any national thereof has or has            (3) the importation from any country, or the
had any interest, or as may be otherwise necessary to        exportation to any country, whether commercial or
enforce the provisions of such paragraph. In any case        otherwise, regardless of format or medium of
in which a report by a person could be required under        transmission, of any information or informational
this paragraph, the President may require the                materials, including but not limited to, publications,
production of any books of account, records,                 films, posters, phonograph records, photographs,
contracts, letters, memoranda, or other papers, in the       microfilms, microfiche, tapes, compact disks, CD
custody or control of such person.                           ROMs, artworks, and news wire feeds. The exports
                                                             exempted from regulation or prohibition by this
     (3) Compliance with any regulation, instruction, or     paragraph do not include those which are otherwise
direction issued under this title shall to the extent        controlled for export under section 5 of the Export
thereof be a full acquittance and discharge for all          Administration Act of 1979 [50 USC app. 2404], or
purposes of the obligation of the person making the          under section 6 of such Act [50 USC app. 2405] to the
same. No person shall be held liable in any court for        extent that such controls promote the nonproliferation
or with respect to anything done or omitted in good          or antiterrorism policies of the United States, or with
faith in connection with the administration of, or           respect to which acts are prohibited by chapter 37 of
pursuant to and in reliance on, this title, or any           title 18, United States Code [18 USC 791 et seq.];
regulation, instruction, or direction issued under this
title.                                                           (4) any transactions ordinarily incident to travel to
                                                             or from any country, including importation of
(b) The authority granted to the President by this           accompanied baggage for personal use, maintenance
section does not include the authority to regulate or        within any country including payment of living
prohibit, directly or indirectly B12                         expenses and acquisition of goods or services for
                                                             personal use, and arrangement or facilitation of such
         12                                                  travel including nonscheduled air, sea, or land
             Pub. L. 100-418, 2502(b)(1) (102 Stat. 1371),   voyages.
added subsection (b)(3). Pub. L. 103-236, 525(c)(1) (108
Stat. 474), amended subsection (b)(3) and added subsection
                                                             (c) Classified information.B In any judicial review
(b)(4).
                                                             of a determination made under this section, if the

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determination was based on classified information (as         (d) The requirements of this section are supplemental
defined in section 1(a) of the Classified Information         to those contained in title IV or the National
Procedures Act) such information may be submitted to          Emergencies Act.
the reviewing court ex parte and in camera. This
subsection does not confer or imply any right to                       Section 205 AUTHORITY
judicial review.                                                       TO ISSUE REGULATIONS
                                                              The President may issue such regulations, including
  Section 204 CONSULTATION AND                                regulations prescribing definitions, as may be
              REPORTS                                         necessary for the exercise of the authorities granted by
                                                              this title.
(a) The President, in every possible instance, shall
consult with the Congress before exercising any of the
authorities granted by this title and shall consult                       Section 206 PENALTIES13
regularly with the Congress so long as such authorities
are exercised.                                                (a) Unlawful acts. It shall be unlawful for a person to
                                                              violate, attempt to violate, conspire to violate, or cause
(b) Whenever the President exercises any of the               a violation of any license, order, regulation, or
authorities granted by this title, he shall immediately
transmit to the Congress a report specifying --
                                                                         13
                                                                            The International Emergency Economic
   (1) the circumstances which necessitate such               Powers Enhancement Act, Pub. L. 110-96 (121 Stat. 1011),
exercise of authority;                                        enacted October 16, 2007, substituted this section for one
                                                              which read:
    (2) why the President believes those circumstances
constitute an unusual and extraordinary threat, which              (a) A civil penalty of not to exceed $ 50,000 may be
has its source in whole or substantial part outside the       imposed on any person who violates, or attempts to violate,
United States, to the national security, foreign policy,      any license, order, or regulation issued under this title.
                                                                   (b) Whoever willfully violates, or willfully attempts to
or economy of the United States;
                                                              violate, any license, order, or regulation issued under this
                                                              title shall, upon conviction, be fined not more than $ 50,000,
   (3) the authorities to be exercised and the actions to     or, if a natural person, may be imprisoned for not more than
be taken in the exercise of those authorities to deal         twenty years, or both; and any officer, director, or agent of
with those circumstances;                                     any corporation who knowingly participates in such
                                                              violation may be punished by a like fine, imprisonment, or
   (4) why the President believes such actions are            both.
necessary to deal with those circumstances; and
                                                                       Section 2(b) of the International Emergency
                                                              Economic Powers Enhancement Act also added the
    (5) any foreign countries with respect to which
                                                              following, which is codified as a note to Section 206:
such actions are to be taken and why such actions are
to be taken with respect to those countries.                     (1) Civil penalties. Section 206(b) of the International
                                                              Emergency Economic Powers Act, as amended by
(c) At least once during each succeeding six-month            subsection (a), shall apply to violations described in section
period after transmitting a report pursuant to                206(a) of such Act with respect to which enforcement action
subsection (b) with respect to an exercise of                 is pending or commenced on or after the date of the
authorities under this title, the President shall report to   enactment of this Act.
the Congress with respect to the actions taken, since
                                                                  (2) Criminal penalties. Section 206(c) of the
the last such report, in the exercise of such authorities,
                                                              International Emergency Economic Powers Act, as amended
and with respect to any changes which have occurred           by subsection (a), shall apply to violations described in
concerning any information previously furnished               section 206(a) of such Act with respect to which
pursuant to paragraphs (1) through (5) of subsection          enforcement action is commenced on or after the date of the
(b).                                                          enactment of this Act.


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prohibition issued under this title.                        continue to be exercised to prohibit transactions
                                                            involving that property if the Prescient determines that
(b) Civil penalty. A civil penalty may be imposed           the continuation of such prohibition with respect to
on any person who commits an unlawful act described         that property is necessary on account of claims
in subsection (a) in an amount not to exceed the            involving such country or its nationals.
greater ofB
                                                            (b) The authorities described in subsection (a)(1) may
   (1) $ 250,000; or                                        not continue to be exercised under this section if the
                                                            national emergency is terminated by the Congress by
    (2) an amount that is twice the amount of the           concurrent resolution pursuant to section 202 of the
transaction that is the basis of the violation with         National Emergencies Act and if the Congress
respect to which the penalty is imposed.                    specifies in such concurrent resolution that such
                                                            authorities may not continue to be exercised under this
(c) Criminal penalty. A person who willfully                section
commits, willfully attempts to commit, or willfully
conspires to commit, or aids or abets in the                (c) (1) The provisions of this section are supplemental
commission of, an unlawful act described in                 to the savings provisions of paragraphs (1), (2) and (3)
subsection (a) shall, upon conviction, be fined not         of section 101(a) and of paragraphs (A), (B), and (C)
more than $ 1,000,000, or if a natural person, may be       of section 202(a) of the National Emergencies Act.
imprisoned for not more than 20 years, or both.
                                                                (2) The provisions of this section supersede the
                                                            termination provisions of section 101(a) and of title II
                                                            of the National Emergencies Act to the extent that the
   Section 207 SAVINGS PROVISION                            provisions of this section are inconsistent with these
                                                            provisions.
(a) (1) Except as provided in subsection (b),
notwithstanding the termination pursuant to the             (d) If the President uses the authority of this section to
National Emergencies Act or a national emergency            continue prohibitions on transactions involving
declared for purposes of this title, any authorities        foreign property interests, he shall report to the
granted by this title, which are exercised on the date of   Congress every six months on the use of such
such termination on the basis of such national              authority.
emergency to prohibit transactions involving property
in which a foreign country or national thereof has any
interest, may continue to be so exercised to prohibit
transactions involving that property if the President              Section 208 SEVERABILITY
determines that the continuation of such prohibition
with respect to that property is necessary on account of    If any provision of this Act is held invalid, the
claims involving such country or its nationals.             remainder of the Act shall not be affected thereby.

    (2) Notwithstanding the termination of the
authorities described in section 101(b) of this Act, any
such authorities, which are exercised with respect to a
country on the date of such termination to prohibit
transactions involving any property in which such
country or any national thereof has any interest, may




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                                          PART II

                                   EXECUTIVE ORDERS AND
                               OTHER PRESIDENTIAL DOCUMENTS
                          RELEVANT TO PART I STATUTORY AUTHORITIES




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Part II.1. ADMINISTRATION OF THE                            be members of the Board, and shall participate in
EXPORT ADMINISTRATION ACT OF 1969, AS                       meetings that consider issues involving nonprolifera-
AMENDED                                                     tion of armaments and other issues within their
                                                            respective statutory authority and policy-making
         Executive Order 12002, as amended                  authorities. The Chairman of the Joint Chiefs of Staff
             by Executive Order 1275514                     and the Director of the Central Intelligence shall be
                                                            non-voting members of the Board. No alternate
By virtue of the authority vested in me by the              Board members shall be designated, but the acting
Constitution and statutes of the United States of           head or deputy head of any department or agency may
America, including the Export Administration Act of         serve in lieu of the head of the concerned department
1969, as amended (50 U.S.C. App. 2401, et seq.), and        or agency. The Board may invite the heads of other
as President of the United States of America, it is         United States Government departments or agencies,
hereby ordered as follows:                                  other than the agencies represented by Board
                                                            members, to participate in the activities of the Board
Section 1. Except as provided in Section 2, the             when matters of interest to such departments or
power, authority, and discretion conferred upon the         agencies are under consideration.
President by the provisions of the Export
Administration Act of 1969, as amended (50 U.S.C.           Section 4. The Secretary of Commerce may from
App. 2401, et seq.), hereinafter referred to as the Act,    time to time refer to the Board such particular export
are delegated to the Secretary of Commerce, with the        license matters, involving questions of national
power of successive redelegation.                           security or other major policy issues, as the Secretary
                                                            shall select. The Secretary of Commerce shall also
Section 2. (a) The power, authority and discretion          refer to the Board any other such export license
conferred upon the President in Sections 4(h) and 4(l)      matter, upon the request of any other member of the
of the Act are retained by the President.                   Board or of the head of any other United States
                                                            Government department or agency having any interest
    (b) The power, authority and discretion conferred       in such matter. The Board shall consider the matters
upon the President in Section 3(8) of the Act, which        so referred to it, giving due consideration to the
directs that every reasonable effort be made to secure      foreign policy of the United States, the national
the removal or reduction of assistance by foreign           security, concerns about the nonproliferation of
countries to international terrorists through               armaments, and the domestic economy, and shall
cooperation and agreement, are delegated to the             make recommendation thereon to the Secretary of
Secretary of State, with the power of successive            Commerce.
redelegation.
                                                            Section 5. The President may at any time (a)
Section 3. The Export Administration Review                 prescribe rules and regulations applicable to the
Board, hereinafter referred to as the Board, which was      power, authority, and discretion referred to in this
established by Executive Order No. 11533 of June 4,         Order, and (b) communicate to the Secretary of
1970, as amended, is hereby continued. The Board            Commerce such specific directives applicable thereto
shall continue to have as its members, the Secretary of     as the President shall determine. The Secretary of
Commerce, who shall be Chairman of the Board, the           Commerce shall from time to time report to the
Secretary of State, and the Secretary of Defense. The       President upon the administration of the Act and, as
Secretary of Energy and the Director of the United          the Secretary deems necessary, may refer to the
States Arms Control and Disarmament Agency shall            President recommendations made by the Board under
                                                            Section 4 of this Order. Neither the provisions of this
                 14                                         section nor those of Section 4 shall be construed as
                       Executive Order 12755 of March 12,   limiting the provisions of Section 1 of this Order.
1991 (56 Fed. Reg. 11057, March 15, 1991) amended
section 3 of Executive Order 12002 by modifying the         Section 6. All delegations, rules, regulations, orders,
composition of the Export Administration Review Board
                                                            licenses, and other forms of administrative action
and inserting “concerns about the nonproliferation of
armaments” in the third sentence of section 4.              made, issued, or otherwise taken under, or continued
                                                            in existence by, the Executive orders revoked

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administratively or legislatively, shall remain in full     legislatively, shall remain in full force and effect until
force and effect under this Order until amended,            amended, modified, or terminated by proper authority.
modified, or terminated by proper authority. The            This Order does not supersede or otherwise affect
revocations in Section 7 of this Order shall not affect     Executive Order No. 12002.
any violation of any rules, regulations, orders, licenses
or other forms of administrative action under those         1-104. Except to the extent inconsistent with this
Orders during the period those Orders were in effect.       Order, all actions previously taken pursuant to any
                                                            function delegated or assigned by this Order shall be
Section 7. Executive Order No. 11533 of June 4,             deemed to have been taken and authorized by this
1970, Executive Order No. 11683 of August 29, 1972,         Order.
Executive Order No. 11798 of August 14, 1974,
Executive Order No. 11818 of November 5, 1974,              THE WHITE HOUSE
Executive Order No. 11907 of March 1, 1976, and             Jimmy Carter
Executive Order No. 11940 of September 30, 1976 are         May 2, 1980
hereby revoked.

THE WHITE HOUSE                                             Part II.3. CHEMICAL AND BIOLOGICAL
Jimmy Carter                                                WEAPONS PROLIFERATION
July 7, 1977.
                                                                            Executive Order 12735

Part II.2. ADMINISTRATION OF    THE                         By the authority vested in me as President by the
EXPORT ADMINISTRATION ACT OF 1979                           Constitution and the laws of the United States of
                                                            America, including the International Emergency
                Executive Order 12214                       Economic Powers Act (50 U.S.C. 1701 et seq.) the
                                                            National Emergencies Act (50 U.S.C. 1601 et seq.)
By the authority vested in me as President of the           and section 301 of title 3 of the United States Code,
United States of America by Section 4(e) of the Export
Administration Act of 1979 (Public Law 96-72; 50            I, GEORGE BUSH, President of the United States of
U.S.C. App. 2403(e)), it is hereby ordered as follows:      America, find that proliferation of chemical and
                                                            biological weapons constitutes an unusual and
1-101. Except as provided in Section 1-102, the             extraordinary threat to the national security and
functions conferred upon the President by the               foreign policy of the United States and hereby declare
provisions of the Export Administration Act of 1979,        a national emergency to deal with that threat.
hereinafter referred to as the Act (Public Law 96-72;       Accordingly, I hereby order:
50 U.S.C. App. 2401 et seq.), are delegated to the
Secretary of Commerce.
                                                            Section 1. International Negotiations. It is the policy
1-102. (a) The functions conferred upon the                 of the United States to lead and seek multilaterally
President by Sections 4(e), 5(c), 5(f)(1), 5(h)(6), 6(k),   coordinated efforts with other countries to control the
7(d)(2), 10(g) and 20 of the Act are reserved to the        proliferation of chemical and biological weapons. The
President.                                                  Secretary of State shall accordingly ensure that the
                                                            early achievement of a comprehensive global
         (b) The functions conferred upon the               convention to prohibit the production and stockpiling
President by Sections 5(f)(4), 5(i) and 6(g) of the Act     of chemical weapons, with adequate provisions for
are delegated to the Secretary of State.                    verification, shall be a top priority of the foreign
                                                            policy of the United States, and the Secretary of State
1-103. All delegations, rules, regulations, orders,         shall cooperate in and lead multilateral efforts to stop
licenses, and other forms of administrative action          the proliferation of chemical weapons.
made, issued or otherwise taken under, or continued in
existence by, Section 21 of the Act or Executive Order      Sec. 2. Imposition of Controls. As provided herein, the
No. 12002, and not revoked administratively or              Secretary of State and the Secretary of Commerce


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shall use their authorities, including the Arms Export     knowingly and materially contributed to the efforts of
control Act and Executive Order No. 12730,                 a foreign country referred to in subsection (2) to use,
respectively, to control any exports that either           develop, produce, stockpile, or otherwise acquire
Secretary determines would assist a country in             chemical or biological weapons.
acquiring the capability to develop, produce,
stockpile, deliver, or use chemical or biological          (2) The countries referred to in subsection (1) are
weapons. The Secretary of State shall pursue early         those that the Secretary of State determines have either
negotiations with foreign governments to adopt             used chemical or biological weapons in violation of
effective measures comparable to those imposed             international law or have made substantial
under this order.                                          preparations to do so on or after the effective date of
                                                           this order.
Sec. 3. Department of Commerce Controls. (a) The
Secretary of Commerce shall prohibit the export of         (3) No department or agency of the United States
any goods, technology, or services subject to his          Government may procure, or enter into any contract
export jurisdiction that the Secretary of Commerce         for the procurement of, any goods or services from
and the Secretary of State determine, in accordance        any foreign person referred to in subsection (1). The
with regulations issued pursuant to this order, would      Secretary of the Treasury shall prohibit the
assist a foreign country in acquiring the capability to    importation into the United States of products
develop, produce, stockpile, deliver, or use chemical      produced by the foreign person.
or biological weapons. The Secretary of Commerce
and the Secretary of State shall develop an initial list   (4) Sanctions imposed pursuant to this section may be
of such goods, technology, and services within 90          terminated or not imposed against foreign persons if
days of this order. The Secretary of State shall pursue    the Secretary of State determines that there is reliable
early negotiations with foreign governments to adopt       evidence that the foreign person concerned has ceased
effective measures comparable to those imposed             all activities referred to in subsection (1).
under this section.
                                                           (5) The Secretary of State and the Secretary of the
(b) Subsection (a) will not apply to exports if their      Treasury may provide appropriate exemptions for
destination is a country with whose government the         procurement contracts necessary to meet U.S.
United States has entered into a bilateral or              operational military requirements or requirements
multilateral arrangement for the control of chemical or    under defense production agreements, sole source
biological weapons-related goods (including delivery       suppliers, spare parts, components, routine servicing
systems) and technology, or maintains domestic             and maintenance of products, and medical and
export controls comparable to controls that are            humanitarian items. They may provide exemptions for
imposed by the United States with respect to such          contracts in existence on the date of this order under
goods and technology or that are otherwise deemed          appropriate circumstances.
adequate by the Secretary of State. (
                                                           Sec. 5. Sanctions Against Foreign Countries. (a)
c) The Secretary of Commerce shall require validated       Sanctions shall be imposed on foreign countries with
licenses to implement this order and shall coordinate      respect to chemical and biological weapons
any license applications with the Secretary of State       proliferation, as specified in subsections (b) and (c).
and the Secretary of Defense.
                                                           (b) The Secretary of State shall determine whether any
Sec. 4. Sanctions Against Foreign Persons. (a)             foreign country has, on or after the effective date of
Sanctions shall be imposed on foreign persons with         this order, (1) used chemical or biological weapons in
respect to chemical and biological weapons                 violation of international law; or (2) made substantial
proliferation, as specified in subsections (b)(1)          preparations to use chemical or biological weapons in
through (b)(5).                                            violation of international law; or (3) developed,
                                                           produced, or stockpiled chemical or biological
(b)(1) Sections shall be imposed on a foreign person if    weapons in violation of international law.
the Secretary of State determines that the foreign
person on or after the effective date of this order        (c) The following sanctions shall be imposed on any

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foreign country identified in subsection (b)(1) unless       of that country.
the Secretary of State determines that any individual
sanction should not be applied due to significant            (8) Landing Rights. At the earliest practicable date, the
foreign policy or national security reasons. The             Secretary of State shall terminate, in a manner
sanctions specified in this section may be made              consistent with international law, the authority of any
applicable to the countries identified in subsections        air carrier that is controlled in fact by the government
(b)(2) or (b)(3) when the Secretary of State determines      of that country to engage in air transportation (as
that such action will further the objectives of this order   defined in section 101(10) of the Federal Aviation Act
pertaining to proliferation. The sanctions specified in      of 1958 (49 U.S.C. App. 1301(10)).
subsection (c)(2) below shall be imposed with the
concurrence of the Secretary of the Treasury.                Sec. 6. Duration. Any sanctions imposed pursuant to
                                                             section 4 or 5 shall remain in force until the Secretary
(1) Foreign Assistance. No assistance shall be               of State determines that lifting any sanction is in the
provided to that country under the Foreign Assistance        foreign policy or national security interests of the
Act of 1961 or the Arms Export Control Act other than        United States or, as to sanctions under section 4, until
assistance that is intended to benefit the people of that    the Secretary has made the determination under
country directly and that is not channeled through           section 4(b)(4).
governmental agencies or entities of that country.
                                                             Sec. 7. Implementation. The Secretary of State, the
(2) Multilateral Development Bank Assistance. The            Secretary of the Treasury, and the Secretary of
United States shall oppose any loan or financial or          Commerce are hereby authorized and directed to take
technical assistance to that country by international        such actions, including the promulgation of rules and
financial institutions in accordance with section 701 of     regulations, as may be necessary to carry out the
the International Financial Institutions Act (22 U.S.C.      purposes of this order. These actions, and in particular
262d).                                                       those in sections 4 and 5, shall be made in consultation
                                                             with the Secretary of Defense and, as appropriate,
(3) Denial of Credit or Other Financial Assistance.          other agency heads. The Secretary concerned may
The United States shall deny to that country any credit      redelegate any of these functions to other officers in
or financial assistance by any department, agency, or        agencies of the Federal Government. All heads of
instrumentality of the United States Government.             departments and agencies of the United States
                                                             Government are directed to take all appropriate
(4) Prohibition on Arms Sales. The United States             measures within their authority to carry out the
Government shall not, under the Arms Export Control          provisions of this order, including the suspension or
Act, sell to that country any defense articles or defense    termination of licenses or other authorization.
services or issue any license for the export of items on
the United States Munitions List.                            Sec. 8. Judicial Review. This order is not intended to
                                                             create, nor does it create, any right or benefit,
(5) Exports of National Security-Sensitive Goods and         substantive or procedural, enforceable at law by a
Technology. No exports shall be permitted of any             party against the United States, its agencies, officers,
goods or technologies controlled for national security       or any other person.
reasons under Export Administration Regulations.
                                                             Sec. 9. Effective Date. This order is effective
(6) Further Export Restrictions. The Secretary of            immediately. This order shall be transmitted to the
Commerce shall prohibit or otherwise substantially           Congress and published in the Federal Register.
restrict exports to that country of goods, technology,
and services (excluding agricultural commodities and         THE WHITE HOUSE
products otherwise subject to control).                      George Bush
                                                             November 16, 1990.
(7) Import Restrictions. Restrictions shall be imposed
on the importation into the United States of articles
(which may include petroleum or any petroleum
product) that are the growth, product, or manufacture

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Part II.4.       ADMINISTRATION OF                       certain imports as provided in section 81(c)(1)(B) of
PROLIFERATION SANCTIONS, MIDDLE                          the AECA and section 11C(c)(1)(B) of the EAA,
EAST ARMS CONTROL AND RELATED                            pursuant to a determination made by the Secretary of
CONGRESSIONAL             REPORTING                      State under section 81(a)(1) of the AECA or section
RESPONSIBILITIES                                         11C(a)(1) of the EAA, and the obligation to
                                                         implement the exceptions provided in section 81(c)(2)
               Executive Order 12851                     of the AECA and section 11C(c)(2) of the EAA,
                                                         insofar as the exceptions affect imports of goods into
By the authority vested in me as President by the        the United States, are delegated to the Secretary of the
Constitution and the laws of the United States of        Treasury.
America, including section 301 of title 3, United
States Code; sections 1701-1703 of the National          (b) Chemical and Biological Weapons Use. The
Defense Authorization Act for Fiscal Year 1991,          authority and duties vested in me by sections 306-308
Public Law 101-510 (50 U.S.C. App. 2402 note, 2405,      of the Chemical and Biological Weapons Control and
2410b; 22 U.S.C. 2797-2797c); sections 303, 324, and     Warfare Elimination Act of 1991 (22 U.S.C.
401-405 of the Foreign Relations Authorization Act,      5604-5606) are delegated to the Secretary of State,
Fiscal Years 1992 and 1993, Public Law 102-138;          except that:
sections 305-308 of the Chemical and Biological
Weapons Control and Warfare Elimination Act of           (1) The authority and duties vested in me to restrict
1991, Public Law 102-182 (50 U.S.C. App. 2410c; 22       certain imports as provided in section 307(b)(2)(D),
U.S.C. 2798, 5604-5606); sections 241 and 1097 of        pursuant to a determination made by the Secretary of
the National Defense Authorization Act for Fiscal        State under section 307(b)(1), are delegated to the
Years 1992 and 1993, Public Law 102-190; and             Secretary of the Treasury.
section 1364 of the National Defense Authorization
Act for Fiscal Year 1993, Public Law 102-484, I          (2) The Secretary of State shall issue, transmit to the
hereby order as follows:                                 Congress, and notify the Secretary of the Treasury of,
                                                         as appropriate, waivers based upon findings made
Section 1.      Chemical and Biological Weapons          pursuant to section 307(d(1)(A)(ii).
Proliferation and Use Sanctions. (a) Chemical and
Biological Weapons Proliferation. The authority and      (3) The authority and duties vested in me to prohibit
duties vested in me by section 81 of the Arms Export     certain exports as provided in section 307(a)(5) and
Control Act, as amended (“AECA”) (22 U.S.C. 2798),       section 307(b)(2)(C), pursuant to a determination
and section 11C of the Export Administration Act of      made by the Secretary of State under section 306(a)(1)
1979, as amended (“EAA”) (50 U.S.C. App. 2410c),         and section 307(b)(1), are delegated to the Secretary
are delegated to the Secretary of State, except that:    of Commerce.

(1) The authority and duties vested in me to deny        (c) Coordination Among Agencies. The Secretaries
certain United States Government contracts, as           designated in this section shall exercise all functions
provided in section 81(c)(1)(A) of the AECA and          delegated to them by this section in consultation with
section 11C(c)(1)(A) of the EAA, pursuant to a           the Secretary of State, the Secretary of Defense, the
determination made by the Secretary of State under       Secretary of the Treasury, the Secretary of Commerce,
section 81(a)(1) of the AECA or section 11C(a)(1) of     the Director of the Arms Control and Disarmament
the EAA, as well as the authority and duties vested in   Agency, and other departments and agencies as
me to make the determinations provided for in section    appropriate, utilizing the appropriate interagency
81(c)(2) of the AECA and section 11C(c)(2) of the        group prior to any determination to exercise the
EAA are delegated to the Secretary of Defense. The       prohibition authority delegated hereby.
Secretary of Defense shall notify the Secretary of the
Treasury of determinations made pursuant to section      Sec. 2 Missile Proliferation Sanctions. (a) Arms
81(c)(2) of the AECA and section 11(c)(2) of the         Export Control Act. The authority and duties vested
EAA.                                                     in me by sections 72-73 of the AECA (22 U.S.C.
                                                         2797a-2797b) are delegated to the Secretary of State,
(2) The authority and duties vested in me to prohibit    except that:

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                                                            certain imports as provided in section 11B(b)(1),
(1) The authority and duties vested in me by section        pursuant to a determination by the Secretary of State
72(a)(1) to make determinations with respect to             under that section, and the obligation to implement the
violations by United States persons of the EAA are          exceptions provided in section 11B(b)(7), are
delegated to the Secretary of Commerce.                     delegated to the Secretary of the Treasury.

(2) The authority and duties vested in me to deny           (c) Reporting Requirements. The authority and
certain United States Government contracts as               duties vested in me to make certain reports to the
provided in sections 73(a)(2)(A)(i) and 73(a)(2)(B)(i),     Congress as provided in section 1097 of the National
pursuant to a determination made by the Secretary of        Defense Authorization Act for Fiscal Years 1992 and
State under section 73(a)(1), as well as the authority      1993 and section 1364 of the National Defense
and duties vested in me to make the findings provided       Authorization Act for Fiscal Year 1993 are delegated
in sections 72(c), 73(f), and 73(g)(1), are delegated to    to the Secretary of State.
the Secretary of Defense. The Secretary of State
shall issue, transmit to the Congress, and notify the       (d) Coordination Among Agencies. The Secretaries
Secretary of the Treasury of, as appropriate, any           designated in this section shall exercise all functions
waivers based upon findings made pursuant to                delegated to them by this section in consultation with
sections 72(c) and 73(f).                                   the Secretary of State, the Secretary of Defense, the
                                                            Secretary of the Treasury, the Secretary of Commerce,
(3) The authority and duties vested in me to prohibit       the Director of the Arms Control and Disarmament
certain imports as provided in section 73(a)(2)(C),         Agency, and other departments and agencies as
pursuant to a determination made by the Secretary of        appropriate, utilizing the appropriate interagency
State under that section, and the obligation to             groups prior to any determination to exercise
implement the exceptions provided in section 73(g),         prohibition authority delegated hereby.
are delegated to the Secretary of the Treasury.
                                                            Sec. 3. Arms Control in the Middle East. The
(b) Export Administration Act. The authority and            certification and reporting functions vested in me by
duties vested in me by section 11B of the EAA (50           sections 403 and 404 of the Foreign Relations
U.S.C. App. 2401b) are delegated to the Secretary of        Authorization Act, Fiscal Years 1992 and 1993, are
Commerce, except that:                                      delegated to the Secretary of State. The Secretary of
                                                            State shall exercise these functions in consultation
(1) The authority and duties vested in me by sections       with the Secretary of Defense and other agencies as
11B(a)(1)(A) (insofar as such section authorizes            appropriate.
determinations with respect to violations by United
States persons of the AECA), 11B(b)(1) (insofar as          Sec. 4. China and Weapons Proliferation. The
such section authorizes determinations regarding            reporting functions regarding China and weapons
activities by foreign persons), and 11B(b)(5) are           proliferation vested in me by sections 303(a)(2) and
delegated to the Secretary of State.                        324 of the Foreign Relations Authorization Act, Fiscal
                                                            Years 1992 and 1993, are delegated to the Secretary of
(2) The authority and duties vested in me to make the       State. The Secretary of State shall exercise these
findings provided in sections 11B(a)(3), 11B(b)(6),         functions in consultation with the Secretary of
and 11B(b)(7)(A) are delegated to the Secretary of          Defense and other agencies as appropriate.
Defense. The Secretary of Commerce shall issue,
transmit to the Congress, and notify the Secretary of       Sec. 5. Arrow Tactical Anti-Missile Program. The
the Treasury of, as appropriate, waivers based upon         authority and duties vested in me to make certain
findings made pursuant to section 11B(a)(3). The            certifications as provided by section 241(b)(3)(C) of
Secretary of State shall issue, transmit to the Congress,   the National Defense Authorization Act for Fiscal
and notify the Secretary of the Treasury of, as             Years 1992 and 1993 are delegated to the Secretary of
appropriate, waivers based upon findings made               State.
pursuant to section 11B(b)(6).
                                                            Sec. 6. Delegations. The functions delegated herein
(3) The authority and duties vested in me to prohibit       may be redelegated as appropriate. Regulations

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necessary to carry out the functions delegated herein         effect pursuant to and as authorized by the Act or by
may be issued as appropriate.                                 other appropriate authority until amended or revoked
                                                              by the proper authority. Nothing in this order shall
Sec. 7.      Priority.   This order supersedes the            affect the continued applicability of the provision for
Memorandum of the President, “Delegation of                   the administration of the Act and delegations of
Authority      Regarding      Missile     Technology          authority set forth in Executive Order No. 12002 of
Proliferation,” June 25, 1991. To the extent that this        July 7, 1977, Executive Order No. 12214 of May 2,
order is inconsistent with any provisions of any prior        1980, and Executive Order No. 12735 of November
Executive order or Presidential memorandum, this              16, 1990.
order shall control.
                                                                       Sec. 3.      All rules, regulations, orders,
THE WHITE HOUSE                                               licenses, and other forms of administrative action
William J. Clinton                                            issued, taken, or continued in effect pursuant to the
June 11, 1993.                                                authority of the IEEPA and Executive Order No.
                                                              12730 relating to the administration of Section 38(e)
                                                              of the Arms Export Control Act (22 U.S.C. 2778(e))
Part II.5. TERMINATION OF EMERGENCY                           shall remain in full force and effect until amended or
AUTHORITY FOR CERTAIN EXPORT                                  revoked under proper authority.
CONTROLS
                                                                     Sec. 4.        This order shall take effect
                Executive Order 12867                         immediately.

          By the authority vested in me as President by       THE WHITE HOUSE
the Constitution and the laws of the United States of         William J. Clinton
America, including section 203 of the International           September 30, 1993
Emergency Economic Powers Act (50 U.S.C. 1702)
("the IEEPA"), the National Emergencies Act (50
U.S.C. 1601 et seq.), the Export Administration Act of        Part II.6. CONTINUATION OF EXPORT
1979, as amended (50 U.S.C. App. 2401 et seq.) (“the          CONTROL REGULATIONS
Act”), and section 301 of title 3 of the United States
Code, it is hereby ordered as follows:                                        Executive Order 12924

         Section 1. In view of the extension of the                    By the authority vested in me as President by
Act by Public Law 103-10 (March 27, 1993),                    the Constitution and the laws of the United States of
Executive Order No. 12730 of September 30, 1990,              America, including but not limited to section 203 of
which continued the effect of export control                  the International Emergency Economic Powers Act
regulations under the IEEPA, is revoked, and the              (“Act”) (50 U.S.C. 1702), I, WILLIAM J. CLINTON,
declaration of economic emergency is rescinded, as            President of the United States of America, find that the
provided in this order.                                       unrestricted access of foreign parties to U.S. goods,
                                                              technology, and technical data and the existence of
          Sec. 2. The revocation of Executive Order           certain boycott practices of foreign nations, in light of
No. 12730 shall not affect any violation of any rules,        the expiration of the Export Administration Act of
regulations, orders, licenses, and other forms of             1979, as amended (50 U.S.C. App. 2401 et seq.),
administrative action under that Order that occurred          constitute an unusual and extraordinary threat to the
during the period the order was in effect. All rules          national security, foreign policy, and economy of the
and regulations issued or continued in effect under the       United States and hereby declare a national
authority of the IEEPA and Executive Order No.                emergency with respect to that threat.
12735, including those codified at 15 CFR Sections
768-799 (1993), and all orders, regulations, licenses,                  Accordingly, in order (a) to exercise the
and other forms of administrative action issued, taken,       necessary vigilance over exports and activities
or continued in effect pursuant thereto, shall remain in      affecting the national security of the United States; (b)
full force and effect, as if issued, taken, or continued in   to further significantly the foreign policy of the United

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States, including its policy with respect to cooperation     regulations by the President or his delegate, and all
by U.S. persons with certain foreign boycott activities,     orders, licenses, and other forms of administrative
and to fulfill its international responsibilities; and (c)   actions issued, taken, or continued in effect pursuant
to protect the domestic economy from the excessive           thereto, relating to the administration of section 38(e).
drain of scarce materials and reduce the serious
economic impact of foreign demand, it is hereby                        Sec. 4. Executive Order No. 12923 of June
ordered as follows:                                          30, 1994, is revoked, and that declaration of
                                                             emergency is rescinded. The revocation of Executive
          Section 1. To the extent permitted by law,         Order No. 12923 shall not affect any violation of any
the provisions of the Export Administration Act of           rules, regulations, orders, licenses, and other forms of
1979, as amended, and the provisions for                     administrative action under that order that occurred
administration of the Export Administration Act of           during the period the order was in effect.
1979, as amended, shall be carried out under this order
so as to continue in full force and effect and amend, as             Sec. 5. This order shall be effective as of
necessary, the export control system heretofore              midnight between August 20, 1994, and August 21,
maintained by the Export Administration regulations          1994, and shall remain in effect until terminated.
issued under the Export Administration Act of 1979,
as amended. The delegations of authority set forth in        THE WHITE HOUSE
Executive Order No. 12002 of July 7, 1977, as                William J. Clinton
amended by Executive Order No. 12755 of March 12,            August 19, 1994.
1991; Executive Order No. 12214 of May 2, 1980;
Executive Order No. 12735 of November 16, 1990;
and Executive Order No. 12851 of June 11, 1993,              Part II.7.  PRESIDENTIAL NOTICE OF
shall be incorporated in this order and shall apply to       AUGUST 15, 1995 CONTINUATION OF EMER-
the exercise of authorities under this order.                GENCY REGARDING EXPORT CONTROL
                                                             REGULATIONS
          Sec. 2. All rules and regulations issued or
continued in effect by the Secretary of Commerce             On August 19, 1994, consistent with the authority
under the authority of the Export Administration Act         provided me under the International Emergency
of 1979, as amended, including those published in            Economic Powers Act (50 U.S.C. 1701 et seq.), I
Title 15, Subtitle B, Chapter VII, Subchapter C, of the      issued Executive Order No. 12924. In that order, I
Code of Federal Regulations, Parts 768 through 799,          declared a national emergency with respect to the
and all orders, regulations, licenses, and other forms of    unusual and extraordinary threat to the national
administrative action issued, taken, or continued in         security, foreign policy, and economy of the United
effect pursuant thereto, shall, until amended or             States in light of the expiration of the Export
revoked by the Secretary of Commerce, remain in full         Administration Act of 1979, as amended (50 U.S.C.
force and effect as if issued or taken pursuant to this      2401 et seq.). Because the Export Administration
order, except that the provisions of sections 203(b)(2)      Act has not been renewed by the Congress, the
and 206 of the Act (50 U.S.C. 1702(b)(2) and 1705)           national emergency declared on August 19, 1994,
shall control over any inconsistent provisions in the        must continue in effect beyond August 19, 1995.
regulations. Nothing in this section shall affect the        Therefore, in accordance with section 202(d) of the
continued applicability of administrative sanctions          National Emergencies Act (50 U.S.C. 1622(d)), I am
provided for by the regulations described above.             continuing the national emergency declared in
                                                             Executive Order No. 12924.
          Sec. 3. Provisions for administration of
section 38(e) of the Arms Export Control Act (22             This notice shall be published in the Federal Register
U.S.C. 2778(e)) may be made and shall continue in            and transmitted to the Congress.
full force and effect until amended or revoked under
the authority of section 203 of the Act (50 U.S.C.           THE WHITE HOUSE
1702). To the extent permitted by law, this order also       William J. Clinton
shall constitute authority for the issuance and              August 15, 1995.
continuation in full force and effect of all rules and

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                                                                provided herein, the Secretary of State and the
Part II.8. PROLIFERATION OF WEAPONS                             Secretary of Commerce shall use their respective
OF MASS DESTRUCTION                                             authorities, including the Arms Export Control Act
                                                                and the International Emergency Economic Powers
         Executive Order 12938, as amended                      Act, to control any exports, to the extent they are not
       by Executive Orders 13094 and 1312815                    already controlled by the Department of Energy and
                                                                the Nuclear Regulatory Commission, that either
         By the authority vested in me as President by          Secretary determines would assist a country in
the Constitution and the laws of the United States of           acquiring the capability to develop, produce,
America, including the International Emergency                  stockpile, deliver, or use weapons of mass destruction
Economic Powers Act (50 U.S.C. 1701 et seq.), the               or their means of delivery. The Secretary of State
National Emergencies Act (50 U.S.C. 1601 et seq.),              shall pursue early negotiations with foreign
the Arms Export Control Act, as amended (22 U.S.C.              governments to adopt effective measures comparable
2751 et seq.), Executive Order Nos. 12851 and 12924,            to those imposed under this order.
and section 301 of title 3, United States Code.
                                                                          Sec. 3. Department of Commerce Controls.
         I, William J. Clinton, President of the                (a) The Secretary of Commerce shall prohibit the
United States of America, find that the proliferation of        export of any goods, technology, or services subject to
nuclear, biological, and chemical weapons (“weapons             the Secretary's export jurisdiction that the Secretary of
of mass destruction”) and of the means of delivering            Commerce determines, in consultation with the
such weapons, constitutes an unusual and                        Secretary of State, the Secretary of Defense, and other
extraordinary threat to the national security, foreign          appropriate officials, would assist a foreign country in
policy, and economy of the United States, and hereby            acquiring the capability to develop, produce,
declare a national emergency to deal with that threat.          stockpile, deliver, or use weapons of mass destruction
         Accordingly, I hereby order:                           or their means of delivery. The Secretary of State
                                                                shall pursue early negotiations with foreign
          Section 1. International Negotiations. It is          governments to adopt effective measures comparable
the policy of the United States to lead and seek                to those imposed under this section.
multilaterally coordinated efforts with other countries
to control the proliferation of weapons of mass                          (b) Subsection (a) of this section will not
destruction and the means of delivering such weapons.           apply to exports relating to a particular category of
Accordingly, the Secretary of States shall cooperate in         weapons of mass destruction (i.e., nuclear, chemical,
and lead multilateral efforts to stop the proliferation of      or biological weapons) if their destination is a country
weapons of mass destruction and their means of                  with whose government the United States has entered
delivery.                                                       into a bilateral or multilateral arrangement for the
                                                                control of that category of weapons of mass
          Sec. 2.      Imposition of Controls.           As     destruction-related goods (including delivery systems)
                                                                and technology, or maintains domestic export controls
                 15                                             comparable to controls that are imposed by the United
                     Executive Order 13094 of July 28, 1998
                                                                States with respect to that category of goods and
(63 Fed. Reg. 40803, July 30, 1998), also titled
                                                                technology, or that are otherwise deemed adequate by
“Proliferation of Weapons of Mass Destruction,” amended
section 4 of Executive Order 12938 to expand the scope of       the Secretary of State.
measures that may be taken against foreign persons.
Executive Order 13128 of June 25, 1999 (64 Fed. Reg.                     (c) The Secretary of Commerce shall
34703), titled “Implementation of the Chemical Weapons          require validated licenses to implement this order and
Convention and the Chemical Weapons Convention                  shall coordinate any license applications with the
Implementation Act,” added subsection (e) to section 3 of       Secretary of State and the Secretary of Defense.
Executive Order 12938. The national emergency declared
in Executive Order 12938 has been continued by annual                    (d) The Secretary of Commerce, in
notices of the President, the most recent being the Notice of
                                                                consultation with the Secretary of State, shall take
November 6, 2002 (67 Fed. Reg. 68493, November 12,
2002).                                                          such actions, including the promulgation of rules,
                                                                regulations, and amendments thereto, as may be

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necessary to continue to regulate the activities of
United States persons in order to prevent their                      (d) Import Ban. The Secretary of the
participation in activities that could contribute to the    Treasury shall prohibit the importation into the United
proliferation of weapons of mass destruction or their       States of goods, technology, or services produced or
means of delivery, as provided in the Export                provided by any foreign person described in
Administration Regulations, set forth in Title 15,          subsection (a) of this section, other than information
Chapter VII, Subchapter C, of the Code of Federal           or informational materials within the meaning of
Regulations, Parts 768 to 799 inclusive.                    section 203(b)(3) of the International Emergency
                                                            Economic Powers Act (50 U.S.C. 1702(b)(3)).
         (e) The Secretary of Commerce shall
impose and enforce such restrictions on the                           (e) Termination. Sanctions pursuant to this
importation of chemicals into the United States as may      section may be terminated or not imposed against a
be necessary to carry out the requirements of the           foreign person if the Secretary of State determines that
Convention on the Prohibition of the Development,           there is reliable evidence that such foreign person has
Production, Stockpiling and Use of Chemical                 ceased all activities referred to in subsection (a) of this
Weapons and on Their Destruction.                           section.

         Sec. 4. Measures Against Foreign Persons.                   (f) Exceptions. Departments and agencies
(a) Determination by Secretary of State; Imposition of      of the United States Government, acting in
Measures. Except to the extent provided in section          consultation with the Secretary of State, may, by
203(b) of the International Emergency Economic              license, regulation, order, directive, exception, or
Powers Act (50 U.S.C. 1702(b)), where applicable, if        otherwise, provide for:
the Secretary of State determines that a foreign person,
on or after November 16, 1990, the effective date of                      (i) Procurement contracts necessary to
Executive Order 12735, the predecessor order to             meet U.S. operational military requirements or
Executive Order 12938, has materially contributed or        requirements under defense production agreements;
attempted to contribute materially to the efforts of any    intelligence requirements; sole source suppliers, spare
foreign country, project, or entity of proliferation        parts, components, routine servicing and maintenance
concern to use, acquire, design, develop, produce, or       of products for the United States Government; and
stockpile weapons of mass destruction or missiles           medical and humanitarian items; and
capable of delivering such weapons, the measures set
forth in subsections (b), (c), and (d) of this section                    (ii) Performance pursuant to contracts in
shall be imposed on that foreign person to the extent       force on the effective date of this order under
determined by the Secretary of State in consultation        appropriate circumstances.
with the implementing agency and other relevant
agencies. Nothing in this section is intended to                      Sec. 5.       Sanctions Against Foreign
preclude the imposition on that foreign person of other     Countries. (a) In addition to the sanctions imposed
measures or sanctions available under this order or         on foreign countries as provided in the Chemical and
under other authorities.                                    Biological Weapons Control and Warfare Elimination
                                                            Act of 1991, sanctions also shall be imposed on a
          (b) Procurement Ban. No department or             foreign country as specified in subsection (b) of this
agency of the United States Government may procure,         section, if the Secretary of State determines that the
or enter into any contract for the procurement of, any      foreign country has, on or after the effective date of
goods, technology, or services from any foreign             this order or its predecessor, Executive Order No.
person described in subsection (a) of this section.         12735 of November 16, 1990, (1) used chemical or
                                                            biological weapons in violation of international law;
         (c) Assistance Ban. No department or               (2) made substantial preparations to use chemical or
agency of the United States Government may provide          biological weapons in violation of international law;
any assistance to any foreign person described in           or (3) developed, produced, stockpiled, or otherwise
subsection (a) of this section, and no such foreign         acquired chemical or biological weapons in violation
person shall be eligible to participate in any assistance   of international law.
program of the United States Government.

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         (b) The following sanctions shall be imposed       (7)       Import Restrictions. Restrictions shall be
on any foreign country identified in subsection (a)(1)      imposed on the importation into the United States of
of this section unless the Secretary of State               articles (that may include petroleum or any petroleum
determines, on grounds of significant foreign policy or     product) that are the growth, product, or manufacture
national security, that any individual sanction should      of that country.
not be applied. The sanctions specified in this section
may be made applicable to the countries identified in       (8)      Landing Rights. At the earliest practicable
subsections (a)(2) or (a)(3) when the Secretary of State    date, the Secretary of State shall terminate, in a
determines that such action will further the objective      manner consistent with international law, the authority
of this order pertaining to proliferation.          The     of any air carrier that is controlled in fact by the
sanctions specified in subsection (b)(2) below shall be     government of that country to engage in air
imposed with the concurrence of the Secretary of the        transportation (as defined in section 101(10) of the
Treasury.                                                   Federal Aviation Act of 1958 (49 U.S.C. App.
                                                            1301(10)).
(1)       Foreign Assistance. No assistance shall be
provided to that country under the Foreign Assistance                 Sec. 6. Duration. Any sanctions imposed
Act of 1961, or any successor act, or the Arms Export       pursuant to sections 4 or 5 of this order shall remain in
Control Act, other than assistance that is intended to      force until the Secretary of State determines that
benefit the people of that country directly and that is     lifting any sanction is in the foreign policy or national
not channeled through governmental agencies or              security interests of the United States or, as to
entities of that country.                                   sanctions under section 4 of this order, until the
                                                            Secretary has made the determination under section
(2)       Multilateral Development Bank Assistance.         4(e).
The United States shall oppose any loan or financial or
technical assistance to that country by international                 Sec. 7. Implementation. The Secretary of
financial institutions in accordance with section 701 of    State, the Secretary of the Treasury, and the Secretary
the International Financial Institutions Act (22 U.S.C.     of Commerce are hereby authorized and directed to
262d).                                                      take such actions, including the promulgation of rules
                                                            and regulations, as may be necessary to carry out the
(3)      Denial of Credit or Other Financial                purposes of this order. These actions, and in
Assistance. The United States shall deny to that            particular those in sections 4 and 5 of this order, shall
country any credit or financial assistance by any           be made in consultation with the Secretary of Defense
department, agency, or instrumentality of the United        and, as appropriate, other agency heads and shall be
States Government.                                          implemented in accordance with procedures
(4)      Prohibition of Arms Sales. The United              established pursuant to Executive Order No. 12851.
States Government shall not, under the Arms Export          The Secretary concerned may redelegate any of these
Control Act, sell to that country any defense articles or   functions to other officers in agencies of the Federal
defense services or issue any license for the export of     Government. All heads of departments and agencies
items on the United States Munitions List.                  of the United States Government are directed to take
                                                            all appropriate measures within their authority to carry
(5)      Exports of National Security-Sensitive Goods       out the provisions of this order, including the
and Technology. No exports shall be permitted of            suspension or termination of licenses or other
any goods or technologies controlled for national           authorizations.
security reasons under the Export Administration
Regulations.                                                          Sec. 8.      Preservation of Authorities.
                                                            Nothing in this order is intended to affect the
(6)       Further Export Restrictions. The Secretary        continued effectiveness of any rules, regulations,
of Commerce shall prohibit or otherwise substantially       orders, licenses, or other forms of administrative
restrict exports to that country of goods, technology,      action issued, taken, or continued in effect heretofore
and services (excluding agricultural commodities and        or hereafter under the authority of the International
products otherwise subject to control).                     Economic Emergency Powers Act, the Export
                                                            Administration Act, the Arms Export Control Act, the

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Nuclear Non-proliferation Act, Executive Order          No.     By the authority vested in me as President by the
12730 of September 30, 1990, Executive Order            No.     Constitution and the laws of the United States of
12735 of November 16, 1990, Executive Order             No.     America, including but not limited to the International
12924 of August 18, 1994, and Executive Order           No.     Emergency Economic Powers Act (50 U.S.C. 1701 et
12930 of September 29, 1994.                                    seq.) (the “Act”), and in order to take additional steps
                                                                with respect to the national emergency described and
          Sec. 9. Judicial Review. This order is not            declared in Executive Order No. 12924 of August 19,
intended to create, nor does it create, and right or            1994, and continued on August 15, 1995, I,
benefit, substantive or procedural, enforceable at law          WILLIAM J. CLINTON, President of the United
by a party against the United States, its agencies,             States of America, find that it is necessary for the
officers, or any other person.                                  procedures set forth below to apply to export license
                                                                applications submitted under the Act and the Export
        Sec. 10. Revocation of Executive Order                  Administration Regulations (15 C.F.R. Part 730 et
Nos. 12735 and 12930. Executive Order No. 12735                 seq.) (“the Regulations”) or under any renewal of, or
of November 16, 1990, and Executive Order No.                   successor to, the Export Administration Act of 1979,
12930 of September 29, 1994, are hereby revoked.                as amended (50 U.S.C. App. 2401 et seq.) (“the
                                                                Export Administration Act”), and the Regulations.
         Sec. 11. Effective Date.           This order is       Accordingly, it is hereby ordered as follows:
effective immediately.
                                                                Section 1. License Review. To the extent permitted
        This order shall be transmitted to the                  by law and consistent with Executive Order No. 12924
Congress and published in the Federal Register.                 of August 19, 1994, the power, authority, and
                                                                discretion conferred upon the Secretary of Commerce
THE WHITE HOUSE                                                 (“the Secretary”) under the Export Administration Act
William J. Clinton                                              to require, review, and make final determinations with
November 14, 1994                                               regard to export licenses, documentation, and other
                                                                forms of information submitted to the Department of
                                                                Commerce pursuant to the Act and the Regulations or
Part II.9. ADMINISTRATION OF EXPORT                             under any renewal of, or successor to, the Export
CONTROLS                                                        Administration Act and the Regulations, with the
                                                                power of successive redelegation, shall continue.
        Executive Order 12981, as amended                       The Departments of State, Defense, and Energy each
   by Executive Orders 13020, 13026 and 1311716                 shall have the authority to review any export license
                                                                application submitted to the Department of Commerce
                   16                                           pursuant to the Act and the Regulations or under any
                          Executive Order 13020 of October
12, 1996 (61 Fed. Reg. 54079, October 17, 1996), titled         renewal of, or successor to, the Export Administration
“Amendment to Executive Order 12981,”, amended sections         Act and the Regulations. The Secretary may refer
5(a)(3)(B) and 5(b)(1) of Executive Order 12981 to include      license applications to other United States
special procedures for the processing of applications for the   Government departments or agencies for review as
export of any commercial communication satellites and any       appropriate. In the event that a department or agency
hot-section technologies for the development, production,       determines that certain types of applications need not
and overhaul of commercial aircraft engines transferred         be referred to it, such department or agency shall
from the United States Munitions List to the Commerce
                                                                notify the Department of Commerce as to the specific
Control List in October 1996. Executive Order 13026 of
November 15, 1996 (61 Fed. Reg. 58767, November 19,
                                                                types of such applications that it does not wish to
1996), titled “Administration of Export Controls on             review. All departments or agencies shall promptly
Encryption Products,” added a new section 6 to Executive        respond, on a case-by-case basis, to requests from
Order 12981, and renumbered previous sections 6 and 7 as        other departments or agencies for historical
sections 7 and 8, respectively. Executive Order 13026 is        information relating to past license applications.
also reprinted in its entirety below. Executive Order 13117
of March 31, 1999 (64 Fed. Reg. 16591, April 5, 1999)           Sec. 2. Determinations. (a) All license applications
deleted references to the Arms Control and Disarmament          submitted under the Act and the Regulations or any
Agency throughout Executive Order 12981.
                                                                renewal of, or successor to, the Export Administration

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Act and the Regulations, shall be resolved or referred                (C) the license is issued within 5 days of the
to the President no later than 90 calendar days after        Secretary's receipt of the requested assurances.
registration of the completed license application.           Whenever such prelicense checks and assurances are
                                                             not requested within the time periods set forth above,
(b) The following actions related to processing a            they must be accomplished within the time periods
license application submitted under the Act and the          established by this section.
Regulations or any renewal of, or successor to, the
Export Administration Act and the Regulations shall                   (4) Multilateral Reviews.         Multilateral
not be counted in calculating the time periods               review of a license application as provided for under
prescribed in this order:                                    the Act and the Regulations or any renewal of, or
                                                             successor to, the Export Administration Act and the
       (1) Agreement of the Applicant. Delays                Regulations, as long as multilateral review is required
upon which the Secretary and the applicant mutually          by the relevant multilateral regime.
agree.
                                                                      (5) Consultations. Consultation with other
         (2) Prelicense Checks. Prelicense checks            governments, if such consultation is provided for by a
through government channels that may be required to          relevant multilateral regime or bilateral arrangement
establish the identity and reliability of the recipient of   as a precondition for approving a license.
items controlled under the Act and the Regulations or
any renewal of, or successor to, the Export                  Sec. 3. Initial Processing. Within 9 days of
Administration Act and the Regulations, provided             registration of any license application, the Secretary
that:                                                        shall, as appropriate:

         (A) the need for such prelicense check is                    (a) request additional information from the
established by the Secretary, or by another department       applicant. The time required for the applicant to
or agency if the request for prelicense check is made        supply the additional information shall not be counted
by such department or agency;                                in calculating the time periods prescribed in this
                                                             section.
        (B) the Secretary requests the prelicense
check within 5 days of the determination that it is                   (b) refer the application and pertinent
necessary; and                                               information to agencies or departments as stipulated in
                                                             section 1 of this order, and forward to the agencies any
          (C) the Secretary completes the analysis of        relevant information submitted by the applicant that
the result of the prelicense check within 5 days.            could not be reduced to electronic form.

         (3)                Requests               for                (c) assure that the stated classification on the
Government-To-Government Assurances. Requests                application is correct; return the application if a
for government-to-government assurances of suitable          license is not required; and, if referral to other
end-use of items approved for export under the Act           departments or agencies is not required, grant the
and the Regulations or any renewal of, or successor to,      application or notify the applicant of the Secretary's
the Export Administration Act and the Regulations,           intention to deny the applications.
when failure to obtain such assurances would result in
rejection of the application, provided that:                 Sec. 4. Department or Agency Review. (a) Each
                                                             reviewing department or agency shall specify to the
        (A) the request for such assurances is sent to       Secretary, within 10 days of receipt of a referral as
the Secretary of State within 5 days of the                  specified in subsection 3(b), any information not in the
determination that the assurances are required;              application that would be required to make a
                                                             determination, and the Secretary shall promptly
          (B) the Secretary of State initiates the request   request such information from the applicant. If, after
of the relevant government within 10 days thereafter;        receipt of the information so specified or other new
and                                                          information, a reviewing department or agency
                                                             concludes that additional information would be

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required to make a determination, it shall promptly         departments or agencies, other than the departments or
specify that additional information to the Secretary,       agencies represented by the Board members, to
and the Secretary shall promptly request such               participate in the activities of the Board when matters
information from the applicant. The time that may           of interest to such departments or agencies are under
elapse between the date the information is requested        consideration.
by the reviewing department or agency and the date
the information is received by the reviewing                          (B) The Secretary may, from time to time,
department or agency shall not be counted in                refer to the Board such particular export license
calculating the time periods prescribed in this order.      matters, involving questions of national security or
Such information specified by reviewing departments         other major policy issues, as the Secretary shall select.
or agencies is in addition to any information that may      The Secretary shall also refer to the Board any other
be requested by the Department of Commerce on its           such export license matter, upon the request of any
own initiative during the first 9 days after registration   other member of the Board or the head of any other
of an application.                                          United States Government department or agency
                                                            having any interest in such matter. The Board shall
          (b) Within 30 days of receipt of a referral and   consider the matters so referred to it, giving due
all required information, a department or agency shall      consideration to the foreign policy of the United
provide the Secretary with a recommendation either to       States, the national security, the domestic economy,
approve or deny the license application.               As   and concerns about the proliferation of armaments,
appropriate, such recommendation may be with the            weapons of mass destruction, missile delivery
benefit of consultation and discussions in interagency      systems, and advanced conventional weapons and
groups established to provide expertise and coordinate      shall make recommendations thereon to the Secretary.
interagency consultation. A recommendation that the
Secretary deny a license shall include a statement of                 (2) Advisory Committee on Export Policy.
the reasons for such recommendation that are                An Advisory Committee on Export Policy (“ACEP”)
consistent with the provisions of the Act and the           is established and shall have as its members the
Regulations or any renewal of, or successor to, the         Assistant Secretary of Commerce for Export
Export Administration Act and the Regulations and           Administration, who shall be Chair of the ACEP, and
shall cite both the statutory and the regulatory bases      Assistant Secretary-level representatives of the
for the recommendation to deny. A department or             Departments of State, Defense, and Energy.
agency that fails to provide a recommendation within        Appropriate representatives of the Joint Chiefs of
30 days with a statement of reasons and the statutory       Staff and of the Nonproliferation Center of the Central
and regulatory bases shall be deemed to have no             Intelligence Agency shall be nonvoting members of
objection to the decision of the Secretary.                 the ACEP. Representatives of the departments or
                                                            agencies shall be the appropriate Assistant Secretary
Sec. 5. Interagency Dispute Resolution.           (a)       or equivalent (or appropriate acting Assistant
Committees. (1)(A) Export Administration Review             Secretary or equivalent in lieu of the Assistant
Board. The Export Administration Review Board               Secretary or equivalent) of the concerned department
("the Board"), which was established by Executive           or agency, or appropriate Deputy Assistant Secretary
Order No. 11533 of June 4, 1970, and continued in           or equivalent (or the appropriate acting Deputy
Executive Order No. 12002 of July 7, 1977, is hereby        Assistant Secretary or equivalent in lieu of the Deputy
continued. The Board shall have as its members, the         Assistant Secretary or equivalent) of the concerned
Secretary, who shall be Chair of the Board, the             department or agency. Regardless of the department
Secretary of State, the Secretary of Defense and the        or agency representative's rank, such representative
Secretary of Energy. The Chairman of the Joint              shall speak and vote at the ACEP on behalf of the
Chiefs of      Staff and the Director of Central            appropriate Assistant Secretary or equivalent of such
Intelligence shall be nonvoting members of the Board.       department or agency. The ACEP may invite
No alternate Board members shall be designated, but         Assistant Secretary-level representatives of other
the acting head or deputy head of any member                United States Government departments or agencies,
department or agency may serve in lieu of the head of       other than the departments and agencies represented
the concerned department of agency. The Board may           by the ACEP members, to participate in the activities
invite the heads of other United States Government          of the ACEP when matters of interest to such

Export Administration Regulations                                                                  January 23, 2013
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departments or agencies are under consideration.          concerning the commercial communication satellites
                                                          and the hot-section technologies described in section
         (3)(A) Operating Committee. An Operating         5(a)(3)(B)), it may appeal the matter to the ACEP for
Committee (“OC”) of the ACEP is established. The          resolution. A department or agency must appeal a
Secretary shall appoint its Chair, who shall also serve   matter within 5 days of such a decision. Appeals
as Executive Secretary of the ACEP. Its other             must be in writing from an official appointed by the
members shall be representatives of appropriate           President, by and with the advice and consent of the
agencies in the Departments of Commerce, State,           Senate, or an officer properly acting in such capacity,
Defense, and Energy.                The appropriate       and must cite both the statutory and the regulatory
representatives of the Joint Chiefs of Staff and the      bases for the appeal. The ACEP shall review all
Nonproliferation Center of the Central Intelligence       departments' and agencies' information and
Agency shall be nonvoting members of the OC. The          recommendations, and the Chair of the ACEP shall
OC may invite representatives of other United States      inform the reviewing departments and agencies of the
Government departments or agencies, other than the        majority vote decision of the ACEP within 11 days
departments and agencies represented by the OC            from the date of receiving notice of the appeal.
members, to participate in the activities of the OC       Within 5 days of the majority vote decision, any
when matters of interest to such departments or           dissenting department or agency may appeal the
agencies are under consideration.                         decision by submitting a letter from the head of the
                                                          department or agency to the Secretary in his or her
         (B) The OC shall review all license              capacity as the Chair of the Board. Such letter shall
applications on which the reviewing departments and       cite both the statutory and the regulatory bases for the
agencies are not in agreement. The Chair of the OC        appeal. Within the same 5-day period, the Secretary
shall consider the recommendations of the reviewing       may call a meeting on his or her own initiative to
departments and agencies and inform them of his or        consider a license application. In the absence of a
her decision on any such matters within 14 days after     timely appeal, the majority vote decision of the ACEP
the deadline for receiving department and agency          shall be final.
recommendations. However, for license applications
concerning commercial communication satellites and                 (2) The Board shall review all departments'
hot-section technologies for the development,             and agencies' information and recommendations, and
production, and overhaul of commercial aircraft           such other export control matters as may be
engines that are transferred from the United States       appropriate.     The Secretary shall inform the
Munitions List to the Commerce Control List pursuant      reviewing departments and agencies of the majority
to regulations issued by the Departments of               vote of the Board within 11 days from the date of
Commerce and State after the date of this order, the      receiving notice of appeal. Within 5 days of the
Chair of the OC shall inform reviewing departments        decision, any department or agency dissenting from
and agencies of the majority vote decision of the OC.     the majority vote decision of the Board may appeal the
As described below, any reviewing department or           decision by submitting a letter from the head of the
agency may appeal the decision of the Chair of the        dissenting department or agency to the President. In
OC, or the majority vote decision of the OC in cases      the absence of a timely appeal, the majority vote
concerning the commercial communication satellites        decision of the Board shall be final.
and hot-section technologies described above, to the
Chair of the ACEP. In the absence of a timely appeal,     Sec. 6. Encryption Products. In conducting the
the Chair's decision (or the majority vote decision in    license review described in section 1 above, with
the case of license applications concerning the           respect to export controls of encryption products that
commercial communication satellites and hot-section       are or would be, on November 15, 1996, designated as
technologies described above) will be final.              defense articles in Category XIII of the United States
                                                          Munitions List and regulated by the United States
         (b) Resolution Procedures. (1) If any            Department of State pursuant to the Arms Export
department or agency disagrees with a licensing           Control Act, 22 U.S.C. 2778 et seq., but that
determination of the Department of Commerce made          subsequently are placed on the Commerce Control
through the Chair of the OC (or a majority vote           List in the Export Administration Regulations, the
decision of the OC in the case of license applications    Departments of State, Defense, Energy, and Justice

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Legal Authority                                                                                                  89

shall have the opportunity to review any export license      maintained by the Export Administration Regulations,
application submitted to the Department of                   15 C.F.R. Part 730 et seq.) (“the EAR”).
Commerce. The Department of Justice shall, with              Accordingly, it is hereby ordered as follows:
respect to such encryption products, be a voting
member of the Export Administration Review Board             Section 1. Treatment of Encryption Products. In
described in section 5(a)(1) of this order and of the        order to provide for appropriate controls on the export
Advisory Committee on Export Policy described in             and foreign dissemination of encryption products,
section 5(a)(2) of this order. The Department of             export controls of encryption products that are or
Justice shall be a full member of the Operating              would be, on this date, designated as defense articles
Committee of the ACEP described in section 5(a)(3)           in Category XIII of the United States Munitions List
of this order, and of any other committees and               and regulated by the United States Department of
consultation groups reviewing export controls with           State pursuant to the Arms Export Control Act, 22
respect to such encryption products.                         U.S.C. 2778 et seq. (“the AECA”), but that
                                                             subsequently are placed on the Commerce Control
Sec. 7. The license review process in this order shall       List in the EAR, shall be subject to the following
take effect beginning with those license applications        conditions:
registered by the Secretary 60 days after the date of
this order and shall continue in effect to the extent not              (a) I have determined that the export of
inconsistent with any renewal of the Export                  encryption products described in this section could
Administration Act, or with any successor to that Act.       harm national security and foreign policy interests
                                                             even where comparable products are or appear to be
Sec. 8. Judicial Review. This order is intended only         available from sources outside the United States, and
to improve the internal management of the executive          that facts and questions concerning the foreign
branch and is not intended to, and does not, create any      availability of such encryption products cannot be
rights to administrative or judicial review, or any other    made subject to public disclosure or judicial review
right or benefit or trust responsibility, substantive or     without revealing or implicating classified
procedural, enforceable by a party against the United        information that could harm United States national
States, its agencies or instrumentalities, its officers or   security and foreign policy interests. Accordingly,
employees, or any other person.                              sections 4(c) and 6(h)(2)-(4) of the Export
                                                             Administration Act of 1979 (“the EAA”), 50 U.S.C.
THE WHITE HOUSE                                              App. 2403(c) and 2405(h)(2)-(4), as amended and as
William J. Clinton                                           continued in effect by Executive Order 12924 of
December 5, 1995.                                            August 19, 1994, and by notices of August 15, 1995,
                                                             and August 14, 1996, all other analogous provisions of
                                                             the EAA relating to foreign availability, and the
Part II.10. ADMINISTRATION OF EXPORT                         regulations in the EAR relating to such EAA
CONTROLS ON ENCRYPTION PRODUCTS                              provisions, shall not be applicable with respect to
                                                             export controls on such encryption products.
                Executive Order 13026                        Notwithstanding this, the Secretary of Commerce
                                                             (“Secretary”) may, in his discretion, consider the
By the authority vested in me as President by the            foreign availability of comparable encryption
Constitution and the laws of the United States of            products in determining whether to issue a license in a
America, including but not limited to the International      particular case or to remove controls on particular
Emergency Economic Powers Act (50 U.S.C. 1701 et             products, but is not required to issue licenses in
seq.), and in order to take additional steps with respect    particular cases or to remove controls on particular
to the national emergency described and declared in          products based on such consideration;
Executive Order No. 12924 of August 19, 1994, and
continued on August 15, 1995 and on August 14,                       (b) Executive Order 12981, as amended by
1996, I, WILLIAM J. CLINTON, President of the                Executive Order 13020 of October 12, 1996, is further
United States of America, have decided that the              amended as follows:
provisions set forth below shall apply to
administration of the export control system                           (1) A new section 6 is added to read as

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follows: “Encryption Products. In conducting the           described in this section may include, but are not
license review described in section 1 above, with          limited to, measures that promote the use of strong
respect to export controls of encryption products that     encryption products and the development of a key
are or would be, on November 15, 1996, designated as       recovery management infrastructure; and
defense articles in Category XIII of the United States
Munitions List and regulated by the United States                   (f) Regulation of encryption products
Department of State pursuant to the Arms Export            described in this section shall be subject to such
Control Act, 22 U.S.C. 2778 et seq., but that              further conditions as the President may direct.
subsequently are placed on the Commerce Control
List in the Export Administration Regulations, the         Sec. 2. Effective Date. The provisions described
Departments of State, Defense, Energy, and Justice         section 1 shall take effect as soon as any encryption
and the Arms Control and Disarmament Agency shall          products described in section 1 are placed on the
have the opportunity to review any export license          Commerce Control List in the EAR.
application submitted to the Department of
Commerce. The Department of Justice shall, with            Sec. 3 Judicial Review. This order is intended only to
respect to such encryption products, be a voting           improve the internal management of the executive
member of the Export Administration Review Board           branch and to ensure the implementation of
described in section 5(a)(1) of this order and of the      appropriate controls on the export and foreign
Advisory Committee on Export Policy described in           dissemination of encryption products. It is not
section 5(a)(2) of this order. The Department of           intended to, and does not, create any rights to
Justice shall be a full member of the Operating            administrative or judicial review, or any other right or
Committee of the ACEP described in section 5(a)(3)         benefit or trust responsibility, substantive or
of this order, and of any other committees and             procedural, enforceable by a party against the United
consultation groups reviewing export controls with         States, its agencies or instrumentalities, its officers or
respect to such encryption products.”                      employees, or any other person.

         (2) Sections 6 and 7 of Executive Order           THE WHITE HOUSE
12981 of December 5, 1995, are renumbered as new           William J. Clinton
sections 7 and 8, respectively.                            November 15, 1996.

         (c) Because the export of encryption
software, like the export of other encryption products     Part II.11. PRESIDENTIAL NOTICE OF
described in this section, must be controlled because      AUGUST 14, 1996 CONTINUATION OF
of such software’s functional capacity, rather than        EMERGENCY REGARDING EXPORT
because of any possible informational value of such        CONTROL REGULATIONS
software, such software shall not be considered or
treated as “technology,” as that term is defined in        On August 19, 1994, consistent with the authority
section 16 of the EAA (50 U.S.C. App. 2415) and in         provided me under the International Emergency
the EAR (61 Fed. Reg. 12714, March 25,1996);               Economic Powers Act (50 U.S.C. 1701 et seq.), I
                                                           issued Executive Order No. 12924. In that order, I
         (d) With respect to encryption products           declared a national emergency with respect to the
described in this section, the Secretary shall take such   unusual and extraordinary threat to the national
actions, including the promulgation of rules,              security, foreign policy, and economy of the United
regulations, and amendments thereto, as may be             States in light of the expiration of the Export
necessary to control the export of assistance              Administration Act of 1979, as amended (50 U.S.C.
(including training) to foreign persons in the same        App. 2401 et seq.).           Because the Export
manner and to the same extent as the export of such        Administration Act has not been renewed by the
assistance is controlled under the AECA, as amended        Congress, the national emergency declared on August
by section 151 of Public Law 104-164;                      19, 1994, must continue in effect beyond August 19,
                                                           1996. Therefore, in accordance with section 202(d)
          (e) Appropriate controls on the export and       of the National Emergencies Act (50 U.S.C. 1622(d)),
foreign    dissemination of encryption products            I am continuing the national emergency declared in

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Executive Order No. 12924.                               security, foreign policy, and economy of the United
                                                         States in light of the expiration of the Export
This notice shall be published in the Federal Register   Administration Act of 1979, as amended (50 U.S.C.
and transmitted to the Congress.                         App. 2401 et seq.).           Because the Export
                                                         Administration Act has not been renewed by the
WILLIAM J. CLINTON                                       Congress, the national emergency declared on August
THE WHITE HOUSE,                                         19, 1994, must continue in effect beyond August 19,
August 14, 1996                                          1998. Therefore, in accordance with section 202(d)
                                                         the National Emergencies Act (50 U.S.C. 1622(d)), I
                                                         am continuing the national emergency declared in
Part II.12. PRESIDENTIAL  NOTICE  OF                     Executive Order No. 12924.
AUGUST 13, 1997 CONTINUATION OF
EMERGENCY         REGARDING   EXPORT                     This notice shall be published in the Federal Register
CONTROL REGULATIONS                                      and transmitted to the Congress.

On August 19, 1994, consistent with the authority        WILLIAM J. CLINTON
provided me under the International Emergency            THE WHITE HOUSE,
Economic Powers Act (50 U.S.C. 1701 et seq.), I          August 13, 1998
issued Executive Order No. 12924. In that order, I
declared a national emergency with respect to the
unusual and extraordinary threat to the national         Part II.14. PRESIDENTIAL NOTICE OF
security, foreign policy, and economy of the United      AUGUST 10, 1999 CONTINUATION OF
States in light of the expiration of the Export          EMERGENCY         REGARDING     EXPORT
Administration Act of 1979, as amended (50 U.S.C.        CONTROL REGULATIONS
App. 2401 et seq.).           Because the Export
Administration Act has not been renewed by the           On August 19, 1994, consistent with the authority
Congress, the national emergency declared on August      provided me under the International Emergency
19, 1994, must continue in effect beyond August 19,      Economic Powers Act (50 U.S.C. 1701 et seq.), I
1997. Therefore, in accordance with section 202(d)       issued Executive Order No. 12924. In that order, I
of the National Emergencies Act (50 U.S.C. 1622(d)),     declared a national emergency with respect to the
I am continuing the national emergency declared in       unusual and extraordinary threat to the national
Executive Order No. 12924.                               security, foreign policy, and economy of the United
                                                         States in light of the expiration of the Export
This notice shall be published in the Federal Register   Administration Act of 1979, as amended (50 U.S.C.
and transmitted to the Congress.                         App. 2401 et seq.).           Because the Export
                                                         Administration Act has not been renewed by the
WILLIAM J. CLINTON                                       Congress, the national emergency declared on August
THE WHITE HOUSE,                                         19, 1994, must continue in effect beyond August 19,
August 13, 1997                                          1999. Therefore, in accordance with section 202(d)
                                                         of    the National Emergencies Act (50 U.S.C.
                                                         1622(d)), I am continuing the national emergency
Part II.13. PRESIDENTIAL NOTICE OF                       declared in Executive Order No. 12924.
AUGUST 13, 1998 CONTINUATION OF
EMERGENCY         REGARDING     EXPORT                   This notice shall be published in the Federal Register
CONTROL REGULATIONS                                      and transmitted to the Congress.

On August 19, 1994, consistent with the authority        WILLIAM J. CLINTON
provided me under the International Emergency            THE WHITE HOUSE,
Economic Powers Act (50 U.S.C. 1701 et seq.), I          August 10, 1999
issued Executive Order No. 12924. In that order, I
declared a national emergency with respect to the
unusual and extraordinary threat to the national

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Part II.15. PRESIDENTIAL NOTICE OF                       economic emergency is rescinded, as provided in this
AUGUST 3, 2000 CONTINUATION OF                           order.
EMERGENCY         REGARDING     EXPORT
CONTROL REGULATIONS                                      Sec. 2. The revocation of Executive Order 12924 shall
                                                         not affect any violation of any rules, regulations,
On August 19, 1994, consistent with the authority        orders, licenses, or other forms of administrative
provided me under the International Emergency            action under that order that occurred during the period
Economic Powers Act (50 U.S.C. 1701 et seq.), I          the order was in effect. All rules and regulations
issued Executive Order No. 12924. In that order, I       issued or continued in effect under the authority of
declared a national emergency with respect to the        IEEPA and Executive Order 12924, including those
unusual and extraordinary threat to the national         codified at 15 C.F.R. 730-74 (2000), and all orders,
security, foreign policy, and economy of the United      regulations, licenses, and other forms of
States in light of the expiration of the Export          administrative action issued, taken, or continued in
Administration Act of 1979, as amended (50 U.S.C.        effect pursuant thereto, remain in full force and effect,
App. 2401 et seq.).           Because the Export         as if issued, taken, or continued in effect pursuant to
Administration Act has not been renewed by the           and as authorized by the Act of by other appropriate
Congress, the national emergency declared on August      authority until amended or revoked by the proper
19, 1994, must continue in effect beyond August 19,      authority. Nothing in this order shall affect the
2000. Therefore, in accordance with section 202(d)       continued applicability of the provision for the
of    the National Emergencies Act (50 U.S.C.            administration of the Act and delegations of authority
1622(d)), I am continuing the national emergency         set forth in Executive Order 12002 of July 7, 1977,
declared in Executive Order No. 12924.                   Executive Order 12214 of May 2, 1980, Executive
                                                         Order 12938 of November 14, 1994, as amended,
This notice shall be published in the Federal Register   Executive Order 12981 of December 5, 1995, as
and transmitted to the Congress.                         amended, and Executive Order 13026 of November
                                                         15, 1996.
WILLIAM J. CLINTON
THE WHITE HOUSE,                                         Sec. 3. All rules, regulations, order, licenses, and other
August 3, 2000                                           forms of administrative action issued, taken, or
                                                         continued in effect pursuant to the authority of IEEPA
                                                         and Executive Order 12924 relating to the
Part II.16. TERMINATION OF EMERGENCY                     administration of section 38(e) of the Arms Export
AUTHORITY FOR CERTAIN EXPORT                             Control Act (22 U.S.C. 2778(e)) shall remain in full
CONTROLS                                                 force and effect until amended or revoked under
                                                         proper authority.
               Executive Order 13206
                                                         GEORGE W. BUSH
By the authority vested in me as President by the        THE WHITE HOUSE
Constitution and the laws of the United States of        April 4, 2001
America, including the International Emergency
Economic Powers Act (50 U.S.C. 1701 et seq.)
(IEEPA), the National Emergencies Act (50 U.S.C.         Part II.17. CONTINUATION OF EXPORT
1601 et seq.), the Export Administration Act of 1979,    CONTROL REGULATIONS
as amended (50 U.S.C. App. 2401 et seq.) (the “Act”),
and section 301 of title 3, United States Code, it is                    Executive Order 13222
hereby ordered as follows:
                                                         By the authority vested in me as President by the
Section 1. In view of the reauthorization and            Constitution and the laws of the United States of
extension of the Act by Public Law 106-508,              America, including but not limited to section 203 of
Executive Order 12924 of August 19, 1994, which          the International Emergency Economic Powers Act
continued the effect of export control regulations       (“Act”) (50 U.S.C. 1702), I, GEORGE W. BUSH,
under IEEPA, is revoked, and the declaration of          President of the United States of America, find that the

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unrestricted access of foreign parties to U.S. goods         effect pursuant thereto, shall, until amended or
and technology and the existence of certain boycott          revoked by the Secretary of Commerce, remain in full
practices of foreign nations, in light of the expiration     force and effect as if issued or taken pursuant to this
of the Export Administration Act of 1979, as amended         order, except that the provisions of sections 203(b)(2)
(50 U.S.C. App. 2401 et seq.), constitute an unusual         and 206 of the Act (50 U.S.C. 1702(b)(2) and 1705)
and extraordinary threat to the national security,           shall control over any inconsistent provisions in the
foreign policy, and economy of the United States and         regulations. Nothing in this section shall affect the
hereby declare a national emergency with respect to          continued applicability of administrative sanctions
that threat.                                                 provided for by the regulations described above.

Accordingly, in order (a) to exercise the necessary          Sec. 3. Provisions for administration of section 38(e)
vigilance over exports and activities affecting the          of the Arms Export Control Act (22 U.S.C. 2778(e))
national security of the United States; (b) to further       may be made and shall continue in full force and effect
significantly the foreign policy of the United States,       until amended or revoked under the authority of
including its policy with respect to cooperation by          section 203 of the Act (50 U.S.C. 1702). To the
U.S. persons with certain foreign boycott activities,        extent permitted by law, this order also shall constitute
and to fulfill its international responsibilities; and (c)   authority for the issuance and continuation in full
to protect the domestic economy from the excessive           force and effect of all rules and regulations by the
drain of scarce materials and reduce the serious             President or his delegate, and all orders, licenses, and
economic impact of foreign demand, it is hereby              other forms of administrative actions issued, taken, or
ordered as follows:                                          continued in effect pursuant thereto, relating to the
                                                             administration of section 38(e).
Section 1. To the extent permitted by law, the
provisions of the Export Administration Act of 1979,         Sec. 4. This order shall be effective as of midnight
as amended, and the provisions for administration of         between August 20, 2001 and August 21, 2001, and
the Export Administration Act of 1979, as amended,           shall remain in effect until terminated.
shall be carried out under this order so as to continue
in full force and effect and amend, as necessary, the        THE WHITE HOUSE
export control system heretofore maintained by the           GEORGE W. BUSH
Export Administration Regulations issued under the           August 17, 2001.
Export Administration Act of 1979, as amended. The
delegations of authority set forth in Executive Order
No. 12002 of July 7, 1977, as amended by Executive           Part II.18. PRESIDENTIAL NOTICE OF
Order No. 12755 of March 12, 1991 and Executive              AUGUST 14, 2002 CONTINUATION OF
Order 13026 of November 15, 1996; Executive Order            EMERGENCY         REGARDING     EXPORT
No. 12214 of May 2, 1980; Executive Order No.                CONTROL REGULATIONS
12735 of November 16, 1990; and Executive Order
No. 12851 of June 11, 1993, shall be incorporated in         On August 17, 2001, consistent with the authority
this order and shall apply to the exercise of authorities    provided me under the International Emergency
under this order. All actions under this order shall be      Economic Powers Act (50 U.S.C. 1701 et seq.), I
in accordance with Presidential directives relating to       issued Executive Order No. 13222. In that order, I
the export control system heretofore issued and not          declared a national emergency with respect to the
revoked.                                                     unusual and extraordinary threat to the national
                                                             security, foreign policy, and economy of the United
Sec. 2. All rules and regulations issued or continued        States in light of the expiration of the Export
in effect by the Secretary of Commerce under the             Administration Act of 1979, as amended (50 U.S.C.
authority of the Export Administration Act of 1979, as       App. 2401 et seq.).           Because the Export
amended, including those published in Title 15,              Administration Act has not been renewed by the
Subtitle B, Chapter VII, Subchapter C, of the Code of        Congress, the national emergency declared on August
Federal Regulations, Parts 730 through 774, and all          17, 2001, must continue in effect beyond August 17,
orders, regulations, licenses, and other forms of            2002. Therefore, in accordance with section 202(d)
administrative action issued, taken, or continued in         of    the National Emergencies Act (50 U.S.C.

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1622(d)), I am continuing for 1 year the national        United States posed by the proliferation of nuclear,
emergency declared in Executive Order No. 13222.         biological, and chemical weapons (weapons of mass
                                                         destruction) and the means of delivering such
This notice shall be published in the Federal Register   weapons. On July 28, 1998, the President issued
and transmitted to the Congress.                         Executive Order 13094 to amend Executive Order
                                                         12938 to respond more effectively to the worldwide
THE WHITE HOUSE                                          threat of proliferation of weapons of mass destruction
GEORGE W. BUSH                                           and the means of delivering such weapons. Because
August 14, 2002.                                         the proliferation of weapons of mass destruction and
                                                         the means of delivering them continues to pose an
                                                         unusual and extraordinary threat to the national
Part II.19. PRESIDENTIAL NOTICE OF                       security, foreign policy, and economy of the United
AUGUST 7, 2003 B CONTINUATION OF                         States, the national emergency first declared on
EMERGENCY      REGARDING    EXPORT                       November 14, 1994, must continue in effect beyond
CONTROL REGULATIONS                                      November 14, 2003. Consistent with section 202(d)
                                                         of the National Emergencies Act (50 U.S.C. 1622(d)),
On August 17, 2001, consistent with the authority        I am continuing for 1 year the national emergency
provided me under the International Emergency            declared in Executive Order 12938, as amended.
Economic Powers Act (50 U.S.C. 1701 et seq.), I
issued Executive Order 13222. In that order, I           This notice shall be published in the Federal Register
declared a national emergency with respect to the        and transmitted to the Congress.
unusual and extraordinary threat to the national
security, foreign policy, and economy of the United      THE WHITE HOUSE
States in light of the expiration of the Export          GEORGE W. BUSH
Administration Act of 1979, as amended (50 U.S.C.        October 29, 2003.
App. 2401 et seq.).            Because the Export
Administration Act has not been renewed by the
Congress, the national emergency declared on August      Part II.21. PRESIDENTIAL NOTICE OF
17, 2001, and renewed on August 14, 2002, must           AUGUST 6, 2004 B CONTINUATION OF
continue in effect beyond August 17, 2003.               EMERGENCY      REGARDING    EXPORT
Therefore, in accordance with section 202(d) of the      CONTROL REGULATIONS
National Emergencies Act (50 U.S.C. 1622(d)), I am
continuing for 1 year the national emergency declared    On August 17, 2001, consistent with the authority
in Executive Order 13222.                                provided me under the International Emergency
                                                         Economic Powers Act (50 U.S.C. 1701 et seq.), I
This notice shall be published in the Federal Register   issued Executive Order 13222. In that order, I
and transmitted to the Congress.                         declared a national emergency with respect to the
                                                         unusual and extraordinary threat to the national
THE WHITE HOUSE                                          security, foreign policy, and economy of the United
GEORGE W. BUSH                                           States in light of the expiration of the Export
August 7, 2003                                           Administration Act of 1979, as amended (50 U.S.C.
                                                         App. 2401 et seq.).           Because the Export
                                                         Administration Act has not been renewed by the
Part II.20 PRESIDENTIAL NOTICE OF                        Congress, the national emergency declared on August
OCTOBER 29, 2003 B CONTINUATION OF                       17, 2001, and renewed on August 14, 2002, and on
EMERGENCY REGARDING WEAPONS OF                           August 7, 2003, must continue in effect beyond
MASS DESTRUCTION                                         August 17, 2004. Therefore, in accordance with
                                                         section 202(d) of the National Emergencies Act (50
On November 14, 1994, by Executive Order 12938,          U.S.C. 1622(d)), I am continuing for 1 year the
President Clinton declared a national emergency with     national emergency declared in Executive Order
respect to the unusual and extraordinary threat to the   13222.
national security, foreign policy, and economy of the

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This notice shall be published in the Federal Register   issued Executive Order 13222. In that order, I
and transmitted to the Congress.                         declared a national emergency with respect to the
                                                         unusual and extraordinary threat to the national
THE WHITE HOUSE                                          security, foreign policy, and economy of the United
GEORGE W. BUSH                                           States in light of the expiration of the Export
August 6, 2004                                           Administration Act of 1979, as amended (50 U.S.C.
                                                         App. 2401 et seq.).           Because the Export
                                                         Administration Act has not been renewed by the
Part II.22 PRESIDENTIAL NOTICE OF                        Congress, the national emergency declared on August
NOVEMBER 4, 2004 B CONTINUATION OF                       17, 2001, must continue in effect beyond August 17,
EMERGENCY REGARDING WEAPONS OF                           2005. Therefore, in accordance with section 202(d)
MASS DESTRUCTION                                         of the National Emergencies Act (50 U.S.C. 1622(d)),
                                                         I am continuing for 1 year the national emergency
On November 14, 1994, by Executive Order 12938,          declared in Executive Order 13222.
President Clinton declared a national emergency with
respect to the unusual and extraordinary threat to the   This notice shall be published in the Federal Register
national security, foreign policy, and economy of the    and transmitted to the Congress.
United States posed by the proliferation of nuclear,
biological, and chemical weapons (weapons of mass        THE WHITE HOUSE
destruction) and the means of delivering such            GEORGE W. BUSH
weapons. On July 28, 1998, the President issued          August 2, 2005
Executive Order 13094 to amend Executive Order
12938 to respond more effectively to the worldwide
threat of proliferation of weapons of mass destruction   Part II.24 PRESIDENTIAL NOTICE OF
and the means of delivering such weapons. Because        OCTOBER 25, 2005 B CONTINUATION OF
the proliferation of weapons of mass destruction and     EMERGENCY REGARDING WEAPONS OF
the means of delivering them continues to pose an        MASS DESTRUCTION
unusual and extraordinary threat to the national
security, foreign policy, and economy of the United      On November 14, 1994, by Executive Order 12938,
States, the national emergency first declared on         President Clinton declared a national emergency with
November 14, 1994, must continue in effect beyond        respect to the unusual and extraordinary threat to the
November 14, 2004. Consistent with section 202(d)        national security, foreign policy, and economy of the
of the National Emergencies Act (50 U.S.C. 1622(d)),     United States posed by the proliferation of nuclear,
I am continuing for 1 year the national emergency        biological, and chemical weapons (weapons of mass
declared in Executive Order 12938, as amended.           destruction) and the means of delivering such
                                                         weapons. On July 28, 1998, the President issued
This notice shall be published in the Federal Register   Executive Order 13094 to amend Executive Order
and transmitted to the Congress.                         12938 to respond more effectively to the worldwide
                                                         threat of proliferation of weapons of mass destruction
THE WHITE HOUSE                                          and the means of delivering such weapons. Because
GEORGE W. BUSH                                           the proliferation of weapons of mass destruction and
November 4, 2004.                                        the means of delivering them continues to pose an
                                                         unusual and extraordinary threat to the national
                                                         security, foreign policy, and economy of the United
Part II.23. PRESIDENTIAL NOTICE OF                       States, the national emergency first declared on
AUGUST 2, 2005 B CONTINUATION OF                         November 14, 1994, must continue in effect beyond
EMERGENCY      REGARDING    EXPORT                       November 14, 2005. Consistent with section 202(d)
CONTROL REGULATIONS                                      of the National Emergencies Act (50 U.S.C. 1622(d)),
                                                         I am continuing for 1 year the national emergency
On August 17, 2001, consistent with the authority        declared in Executive Order 12938, as amended.
provided me under the International Emergency
Economic Powers Act (50 U.S.C. 1701 et seq.), I          This notice shall be published in the Federal Register

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and transmitted to the Congress.                         weapons. On July 28, 1998, the President issued
                                                         Executive Order 13094 amending Executive Order
THE WHITE HOUSE                                          12938 to improve our ability to combat proliferation.
GEORGE W. BUSH                                           Because the proliferation of weapons of mass
October 25, 2005.                                        destruction and the means of delivering them
                                                         continues to pose an unusual and extraordinary threat
                                                         to the national security, foreign policy, and economy
Part II.25 PRESIDENTIAL NOTICE OF                        of the United States, the national emergency first
AUGUST 3, 2006 - CONTINUATION OF                         declared on November 14, 1994, must continue in
EMERGENCY     REGARDING    EXPORT                        effect beyond November 14, 2006. In accordance
CONTROL REGULATIONS                                      with section 202(d) of the National Emergencies Act
                                                         (50 U.S.C. 1622(d)), I am continuing for 1 year the
On August 17, 2001, consistent with the authority        national emergency declared in Executive Order
provided to me under the International Emergency         12938, as amended.
Economic Powers Act (50 U.S.C. 1701 et seq.), I
issued Executive Order 13222. In that order, I           This notice shall be published in the Federal Register
declared a national emergency with respect to the        and transmitted to the Congress.
unusual and extraordinary threat to the national
security, foreign policy, and economy of the United      THE WHITE HOUSE
States in light of the expiration of the Export          GEORGE W. BUSH
Administration Act of 1979, as amended (50 U.S.C         October 27, 2006.
App. 2401 et seq.). Because the Export Administration
Act has not been renewed by the Congress, the
national emergency declared on August 17, 2001,          Part II.27 PRESIDENTIAL NOTICE OF
must continue in effect beyond August 17, 2006.          AUGUST 15, 2007 - CONTINUATION OF
Therefore, in accordance with section 202(d) of the      EMERGENCY      REGARDING    EXPORT
National Emergencies Act (50 U.S.C. 1622(d)), I am       CONTROL REGULATIONS
continuing for 1 year the national emergency declared
in Executive Order 13222.                                On August 17, 2001, consistent with the authority
                                                         provided to me under the International Emergency
This notice shall be published in the Federal Register   Economic Powers Act (50 U.S.C. 1701 et seq.), I
and transmitted to the Congress.                         issued Executive Order 13222. In that order, I
                                                         declared a national emergency with respect to the
THE WHITE HOUSE                                          unusual and extraordinary threat to the national
GEORGE W. BUSH                                           security, foreign policy, and economy of the United
August 3, 2006.                                          States in light of the expiration of the Export
                                                         Administration Act of 1979, as amended (50 U.S.C.
                                                         app. 2401 et seq.).           Because the Export
                                                         Administration Act has not been renewed by the
Part II.26 PRESIDENTIAL NOTICE OF                        Congress, the national emergency declared on August
OCTOBER 27, 2006 - CONTINUATION OF                       17, 2001, must continue in effect beyond August 17,
NATIONAL EMERGENCY REGARDING THE                         2007. Therefore in accordance with section 202(d) of
PROLIFERATION OF WEAPONS OF MASS                         the National Emergencies Act (50 U.S.C. 1622(d)), I
DESTRUCTION                                              am continuing for 1 year the national emergency
                                                         declared in Executive Order 13222.
On November 14, 1994, by Executive Order 12938,
the President declared a national emergency with         This notice shall be published in the Federal Register
respect to the unusual and extraordinary threat to the   and transmitted to the Congress.
national security, foreign policy, and economy of the
United States posed by the proliferation of nuclear,     THE WHITE HOUSE
biological, and chemical weapons (weapons of mass        GEORGE W. BUSH
destruction) and the means of delivering such            August 15, 2007

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                                                          national security, foreign policy, and economy of the
                                                          United States in light of the expiration of the Export
Part II.28 PRESIDENTIAL NOTICE OF                         Administration Act of 1979, as amended (50 U.S.C.
NOVEMBER 8, 2007 - CONTINUATION OF                        app. 2401 et seq.).            Because the Export
NATIONAL EMERGENCY REGARDING THE                          Administration Act has not been renewed by the
PROLIFERATION OF WEAPONS OF MASS                          Congress, the national emergency declared on August
DESTRUCTION                                               17, 2001, must continue in effect beyond August 17,
                                                          2008. Therefore in accordance with section 202(d) of
On November 14, 1994, by Executive Order 12938,           the National Emergencies Act (50 U.S.C. 1622(d)), I
the President declared a national emergency with          am continuing for 1 year the national emergency
respect to the unusual and extraordinary threat to the    declared in Executive Order 13222.
national security, foreign policy, and economy of the
United States posed by the proliferation of nuclear,      This notice shall be published in the Federal Register
biological, and chemical weapons "weapons of mass         and transmitted to the Congress.
destruction" and the means of delivering such
weapons. On July 28, 1998, the President issued           THE WHITE HOUSE
Executive Order 13094 amending Executive Order            GEORGE W. BUSH
12938 to respond more effectively to the worldwide        July 23, 2008
threat of weapons of mass destruction proliferation
activities. On June 28, 2005, I issued Executive Order
13382 which, inter alia, further amended Executive        Part II.30 PRESIDENTIAL NOTICE OF
Order 12938 to improve our ability to combat              NOVEMBER 10, 2008 - CONTINUATION OF
proliferation. The proliferation of weapons of mass       NATIONAL EMERGENCY WITH RESPECT
destruction and the means of delivering them              TO WEAPONS OF MASS DESTRUCTION
continues to pose an unusual and extraordinary threat
to the national security, foreign policy, and economy     On November 14, 1994, by Executive Order 12938,
of the United States; therefore, the national emergency   the President declared a national emergency with
first declared on November 14, 1994, and extended in      respect to the unusual and extraordinary threat to the
each subsequent year, must continue. In accordance        national security, foreign policy, and economy of the
with section 202(d) of the National Emergencies Act       United States posed by the proliferation of nuclear,
(50 U.S.C. 1622(d)), I am continuing for 1 year the       biological, and chemical weapons (weapons of mass
national emergency declared in Executive Order            destruction) and the means of delivering such
12938, as amended.                                        weapons. On July 28, 1998, the President issued
                                                          Executive Order 13094 amending Executive Order
This notice shall be published in the Federal Register    12938 to respond more effectively to the worldwide
and transmitted to the Congress.                          threat of weapons of mass destruction proliferation
                                                          activities. On June 28, 2005, I issued Executive Order
THE WHITE HOUSE                                           13382 that, inter alia, further amended Executive
GEORGE W. BUSH                                            Order 12938 to improve our ability to combat
November 8, 2007                                          proliferation. The proliferation of weapons of mass
                                                          destruction and the means of delivering them
                                                          continues to pose an unusual and extraordinary threat
Part II.29 PRESIDENTIAL NOTICE OF JULY                    to the national security, foreign policy, and economy
23, 2008 - CONTINUATION OF EMERGENCY                      of the United States; therefore, the national emergency
REGARDING         EXPORT      CONTROL                     first declared on November 14, 1994, and extended in
REGULATIONS                                               each subsequent year, must continue. In accordance
                                                          with section 202(d) of the National Emergencies Act
On August 17, 2001, consistent with the authority         (50 U.S.C. 1622(d)), I am continuing for 1 year the
provided to me under the International Emergency          national emergency declared in Executive Order
Economic Powers Act (50 U.S.C. 1701 et seq.), I           12938, as amended.
issued Executive Order 13222. In that order, I
declared a national emergency with respect to the         This notice shall be published in the Federal Register

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and transmitted to the Congress.                         threat of weapons of mass destruction proliferation
                                                         activities. On June 28, 2005, the President issued
THE WHITE HOUSE                                          Executive Order 13382 that, inter alia, further
GEORGE W. BUSH                                           amended Executive Order 12938 to improve our
November 10, 2008                                        ability to combat proliferation. The proliferation of
                                                         weapons of mass destruction and the means of
                                                         delivering them continues to pose an unusual and
Part II.31 PRESIDENTIAL NOTICE OF                        extraordinary threat to the national security, foreign
AUGUST 13, 2009 - CONTINUATION OF                        policy, and economy of the United States; therefore,
EMERGENCY      REGARDING    EXPORT                       the national emergency first declared on November
CONTROL REGULATIONS                                      14, 1994, and extended in each subsequent year, must
                                                         continue. In accordance with section 202(d) of the
On August 17, 2001, consistent with the authority        National Emergencies Act (50 U.S.C. 1622(d)), I am
provided to me under the International Emergency         continuing for 1 year the national emergency declared
Economic Powers Act (50 U.S.C. 1701 et seq.), the        in Executive Order 12938, as amended.
President issued Executive Order 13222. In that
order, he declared a national emergency with respect     This notice shall be published in the Federal Register
to the national security, foreign policy, and economy    and transmitted to the Congress.
of the United States in light of the expiration of the
Export Administration Act of 1979, as amended (50        THE WHITE HOUSE
U.S.C. app. 2401 et seq.). Because the Export            BARACK OBAMA
Administration Act has not been renewed by the           November 6, 2009
Congress, the national emergency declared on August
17, 2001, must continue in effect beyond August 17,
2009. Therefore in accordance with section 202(d) of     Part II.33 PRESIDENTIAL NOTICE OF
the National Emergencies Act (50 U.S.C. 1622(d)), I      AUGUST 12, 2010 - CONTINUATION OF
am continuing for 1 year the national emergency          EMERGENCY      REGARDING    EXPORT
declared in Executive Order 13222.                       CONTROL REGULATIONS

This notice shall be published in the Federal Register   On August 17, 2001, consistent with the authority
and transmitted to the Congress.                         provided to me under the International Emergency
                                                         Economic Powers Act (50 U.S.C. 1701 et seq.), the
THE WHITE HOUSE                                          President issued Executive Order 13222. In that
BARACK OBAMA                                             order, he declared a national emergency with respect
August 13, 2009                                          to the national security, foreign policy, and economy
                                                         of the United States in light of the expiration of the
                                                         Export Administration Act of 1979, as amended (50
Part II.32 PRESIDENTIAL NOTICE OF                        U.S.C. app. 2401 et seq.). Because the Export
NOVEMBER 10, 2009 - CONTINUATION OF                      Administration Act has not been renewed by the
NATIONAL EMERGENCY WITH RESPECT                          Congress, the national emergency declared on August
TO WEAPONS OF MASS DESTRUCTION                           17, 2001, must continue in effect beyond August 17,
                                                         2010. Therefore in accordance with section 202(d) of
On November 14, 1994, by Executive Order 12938,          the National Emergencies Act (50 U.S.C. 1622(d)), I
the President declared a national emergency with         am continuing for 1 year the national emergency
respect to the unusual and extraordinary threat to the   declared in Executive Order 13222.
national security, foreign policy, and economy of the
United States posed by the proliferation of nuclear,     This notice shall be published in the Federal Register
biological, and chemical weapons (weapons of mass        and transmitted to the Congress.
destruction) and the means of delivering such
weapons. On July 28, 1998, the President issued          THE WHITE HOUSE
Executive Order 13094 amending Executive Order           BARACK OBAMA
12938 to respond more effectively to the worldwide       August 12, 2010

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                                                         control laws and enhanced intelligence exchange in
                                                         support of such enforcement efforts, it is hereby
Part II.34 PRESIDENTIAL NOTICE OF                        ordered as follows:
NOVEMBER 4, 2010 - CONTINUATION OF
NATIONAL EMERGENCY WITH RESPECT                          Section 1. Policy. Export controls are critical to
TO WEAPONS OF MASS DESTRUCTION                           achieving our national security and foreign policy
                                                         goals. To enhance our enforcement efforts and
On November 14, 1994, by Executive Order 12938,          minimize      enforcement       conflicts,    executive
the President declared a national emergency with         departments and agencies must coordinate their efforts
respect to the unusual and extraordinary threat to the   to detect, prevent, disrupt, investigate, and prosecute
national security, foreign policy, and economy of the    violations of U.S. export control laws, and must share
United States posed by the proliferation of nuclear,     intelligence and law enforcement information related
biological, and chemical weapons (weapons of mass        to these efforts to the maximum extent possible,
destruction) and the means of delivering such            consistent with national security and applicable law.
weapons. On July 28, 1998, the President issued
Executive Order 13094 amending Executive Order           Sec. 2. Establishment. (a) The Secretary of Homeland
12938 to respond more effectively to the worldwide       Security shall establish, within the Department of
threat of weapons of mass destruction proliferation      Homeland Security for administrative purposes, an
activities. On June 28, 2005, the President issued       interagency      Federal     Export      Enforcement
Executive Order 13382 that, inter alia, further          Coordination Center (Center).
amended Executive Order 12938 to improve our
ability to combat proliferation. The proliferation of    (b) The Center shall coordinate on matters relating to
weapons of mass destruction and the means of             export enforcement among the following:
delivering them continues to pose an unusual and
extraordinary threat to the national security, foreign            (i) the Department of State;
policy, and economy of the United States; therefore,
the national emergency first declared on November                 (ii) the Department of the Treasury;
14, 1994, and extended in each subsequent year, must
continue. In accordance with section 202(d) of the                (iii) the Department of Defense;
National Emergencies Act (50 U.S.C. 1622(d)), I am
continuing for 1 year the national emergency declared             (iv) the Department of Justice;
in Executive Order 12938, as amended.
                                                                  (v) the Department of Commerce;
This notice shall be published in the Federal Register
and transmitted to the Congress.                                  (vi) the Department of Energy;

THE WHITE HOUSE                                                   (vii) the Department of Homeland Security;
BARACK OBAMA
November 4, 2010                                                   (viii) the Office of the Director of National
                                                         Intelligence; and

Part II.35 EXPORT                   ENFORCEMENT                   (ix) other executive branch departments,
COORDINATION CENTER                                      agencies, or offices as the President, from time to
                                                         time, may designate.
Executive Order 13558
                                                         (c) The Center shall have a Director, who shall be a
By the authority vested in me as President by the        full-time senior officer or employee of the Department
Constitution and the laws of the United States of        of Homeland Security, designated by the Secretary of
America, and in order to advance United States           Homeland Security. The Center shall have two Deputy
foreign policy and protect the national and economic     Directors, who shall be full-time senior officers or
security of the United States through strengthened and   employees of the Department of Commerce and the
coordinated enforcement of United States export          Department of Justice, designated by the Secretary of

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Commerce and the Attorney General, respectively,           particular subject matters, organize and coordinate
detailed to the Center and reporting to the Director.      subgroups of the Center's members.
The Center shall also have an Intelligence Community
Liaison, who shall be a full-time senior officer or        Sec. 5. General Provisions. (a) This order shall be
employee of the Federal Government, designated by          implemented consistent with applicable law and
the Director of National Intelligence, and detailed or     subject to the availability of appropriations.
assigned to the Center.
                                                           (b) Nothing in this order shall be construed to impair
(d) The Center shall have a full-time staff reporting to   or otherwise affect:
the Director. To the extent permitted by law, executive
departments and agencies enumerated in subsection                  (i) authority granted by law, regulation,
(b) of this section are encouraged to detail or assign     Executive Order, or Presidential Directive to an
their employees to the Center without reimbursement.       executive department, agency, or head thereof; or

Sec. 3. Functions. The Center shall:                               (ii) functions of the Director of the Office of
                                                           Management and Budget relating to budgetary,
(a) serve as the primary forum within the Federal          administrative, or legislative proposals.
Government for executive departments and agencies
to    coordinate and enhance their export                  (c) Nothing in this order shall be construed to provide
control enforcement efforts and identify and resolve       exclusive or primary investigative authority to any
conflicts that have not been otherwise resolved in         agency. Agencies shall continue to investigate
criminal and administrative investigations and actions     criminal and administrative export violations
involving violations of U.S. export control laws;          consistent with their existing authorities, jointly or
                                                           separately, with coordination through the Center to
(b) serve as a conduit between Federal law                 enhance enforcement efforts and minimize potential
enforcement agencies and the U.S. Intelligence             for conflict.
Community for the exchange of information related to
potential U.S. export control violations;                  (d) This order is not intended to, and does not, create
                                                           any right or benefit, substantive or procedural,
(c) serve as a primary point of contact between            enforceable at law or in equity by any party against the
enforcement authorities and agencies engaged in            United States, its departments, agencies, or entities, its
export licensing;                                          officers, employees, or agents, or any other person.

(d) coordinate law enforcement public outreach             THE WHITE HOUSE
activities related to U.S. export controls; and            BARACK OBAMA
                                                           November 9, 2010
(e) establish Government-wide statistical tracking
capabilities for U.S. criminal and administrative
export control enforcement activities, to be conducted     Part II.36 PRESIDENTIAL NOTICE OF
by the Department of Homeland Security with                AUGUST 12, 2011 – CONTINUATION OF
information provided by and shared with all relevant       EMERGENCY      REGARDING    EXPORT
departments and agencies participating in the Center.      CONTROL REGULATIONS

Sec. 4. Administration. (a) The Department of              On August 17, 2001, consistent with the authority
Homeland Security shall operate and provide funding        provided to the President under the International
and administrative support for the Center to the extent    Emergency Economic Powers Act (50 U.S.C. 1701 et
permitted by law and subject to the availability of        seq.), the President issued Executive Order 13222. In
appropriations.                                            that order, he declared a national emergency with
                                                           respect to the unusual and extraordinary threat to the
(b) The Director of the Center shall convene and           national security, foreign policy, and economy of the
preside at the Center's meetings, determine its agenda,    United States in light of the expiration of the Export
direct the work of the Center, and, as appropriate to      Administration Act of 1979, as amended (50 U.S.C.

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App. 2401 et seq.). Because the Export Administration    THE WHITE HOUSE
Act has not been renewed by the Congress, the            BARACK OBAMA
national emergency declared on August 17, 2001,          November 9, 2011
must continue in effect beyond August 17, 2011.
Therefore, in accordance with section 202(d) of the      Part II.38 PRESIDENTIAL NOTICE OF
National Emergencies Act (50 U.S.C. 1622(d)), I am       AUGUST 15, 2012 – CONTINUATION OF
continuing for 1 year the national emergency declared    EMERGENCY WITH REGARD TO EXPORT
in Executive Order 13222.                                CONTROL REGULATIONS

This notice shall be published in the Federal Register
                                                         On August 17, 2001, consistent with the authority
and transmitted to the Congress.
                                                         provided to the President under the International
                                                         Emergency Economic Powers Act (50 U.S.C. 1701 et
THE WHITE HOUSE
                                                         seq.), the President issued Executive Order 13222. In
BARACK OBAMA
                                                         that order, he declared a national emergency with
August 12, 2011
                                                         respect to the unusual and extraordinary threat to the
                                                         national security, foreign policy, and economy of the
                                                         United States in light of the expiration of the Export
Part II.37 PRESIDENTIAL NOTICE OF                        Administration Act of 1979, as amended (50 U.S.C.
NOVEMBER 9, 2011 – CONTINUATION OF
                                                         App. 2401 et seq.). Because the Export Administration
EMERGENCY WITH RESPECT TO WEAPONS                        Act has not been renewed by the Congress, the
OF MASS DESTRUCTION                                      national emergency declared on August 17, 2001,
                                                         must continue in effect beyond August 17, 2012.
On November 14, 1994, by Executive Order 12938,
                                                         Therefore, in accordance with section 202(d) of the
the President declared a national emergency with
                                                         National Emergencies Act (50 U.S.C. 1622(d)), I am
respect to the unusual and extraordinary threat to the
                                                         continuing for 1 year the national emergency declared
national security, foreign policy, and economy of the
                                                         in Executive Order 13222.
United States posed by the proliferation of nuclear,
biological, and chemical weapons (weapons of mass        This notice shall be published in the Federal Register
destruction) and the means of delivering such            and transmitted to the Congress.
weapons. On July 28, 1998, the President issued          THE WHITE HOUSE
Executive Order 13094 amending Executive Order           BARACK OBAMA
12938 to respond more effectively to the worldwide       August 15, 2012
threat of weapons of mass destruction proliferation
activities. On June 28, 2005, the President issued
Executive Order 13382 which, inter alia, further         Part II.39 PRESIDENTIAL NOTICE OF
amended Executive Order 12938 to improve our             NOVEMBER 1, 2012 – CONTINUATION OF
ability to combat proliferation. The proliferation of    EMERGENCY WITH RESPECT TO WEAPONS
weapons of mass destruction and the means of             OF MASS DESTRUCTION
delivering them continues to pose an unusual and
extraordinary threat to the national security, foreign
policy, and economy of the United States; therefore,     On November 14, 1994, by Executive Order 12938,
the national emergency first declared on November        the President declared a national emergency with
14, 1994, and extended in each subsequent year, must     respect to the unusual and extraordinary threat to the
continue. In accordance with section 202(d) of the       national security, foreign policy, and economy of the
National Emergencies Act (50 U.S.C. 1622(d)), I am       United States posed by the proliferation of nuclear,
continuing for 1 year the national emergency declared    biological, and chemical weapons (weapons of mass
in Executive Order 12938, as amended.                    destruction) and the means of delivering such
                                                         weapons. On July 28, 1998, the President issued
This notice shall be published in the Federal Register   Executive Order 13094 amending Executive Order
and transmitted to the Congress.                         12938 to respond more effectively to the worldwide
                                                         threat of weapons of mass destruction proliferation
                                                         activities. On June 28, 2005, the President issued

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Executive Order 13382 which, inter alia, further         continuing for 1 year the national emergency declared
amended Executive Order 12938 to improve our             in Executive Order 12938, as amended.
ability to combat proliferation. The proliferation of
                                                         This notice shall be published in the Federal Register
weapons of mass destruction and the means of
                                                         and transmitted to the Congress.
delivering them continues to pose an unusual and
extraordinary threat to the national security, foreign   THE WHITE HOUSE
policy, and economy of the United States; therefore,     BARACK OBAMA
the national emergency first declared on November        November 1, 2012
14, 1994, and extended in each subsequent year, must
continue. In accordance with section 202(d) of the
National Emergencies Act (50 U.S.C. 1622(d)), I am




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                                        PART III

                              OTHER STATUTORY PROVISIONS
                   RELEVANT TO THE EXPORT ADMINISTRATION REGULATIONS




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Part III.1. NUCLEAR NON-PROLIFERATION
ACT OF 1978                                                Sec. 103 Domestic use of energy supplies and
                                                                    related materials and equipment
        Note:     Section 309(c) of the Nuclear
        Non-Proliferation Act of 1978, Pub. L.           (a)      Export restrictions -- The President may, by
        95-242, March 10, 1978, 92 Stat. 141,            rule, under such terms and conditions as he determines
        codified at 42 U.S.C. 2139a, as amended by       to be appropriate and necessary to carry out the
        section 1225(e)(4) of Pub. L. 105-277 (112       purposes of this chapter, restrict exports of --
        Stat. 2681), sets forth the Commerce
        Department's responsibility for controlling               (1) coal, petroleum products, natural gas, or
        the export of dual-use items of significance              petrochemical feedstocks, and
        for nuclear explosive purposes.           The
        Nuclear Non-Proliferation Act of 1978 is                  (2) supplies of materials or equipment
        principally codified at 22 U.S.C. 3201 et seq.            which he determines to be necessary (A) to
                                                                  maintain or further exploration, production,
                                                                  refining, or transportation of energy supplies,
     Sec. 309     Component and Other Parts                       or (B) for the construction or maintenance of
of Facilities                                                     energy facilities within the United States.

                  **********                             (b) Exemptions

(c)      The President, within not more than one                  (1) The President shall exercise the
hundred and twenty days after March 10, 1978, shall               authority provided for in subsection (a) of
publish procedures regarding the control by the                   this section to promulgate a rule prohibiting
Department of Commerce over all export items, other               the export of crude oil and natural gas
than those licensed by the [Nuclear Regulatory]                   produced in the United States, except that the
Commission, which could be, if used for purposes                  President may, pursuant to paragraph (2),
other than those for which the export is intended, of             exempt from such prohibition such crude oil
significance for nuclear explosive purposes. Among                or natural gas exports which he determines to
other things, these procedures shall provide for prior            be consistent with the national interest and
consultations by the Department of Commerce with                  the purposes of this chapter.
the Department of State, the Arms Control and
Disarmament Agency, the Commission, the                           (2) Exemptions from any rule prohibiting
Department of Energy, and the Department of                       crude oil or natural gas exports shall be
Defense.                                                          included in such rule or provided for in an
                                                                  amendment thereto and may be based on the
                  **********                                      purpose for export, class of seller or
                                                                  purchaser, country or destination, or any
                                                                  other reasonable classification or basis as the
Part III.2. “CRUDE OIL” STATUTES                                  president determines to be appropriate and
                                                                  consistent with the national interest and the
                                                                  purposes of this chapter.
Part III.2.a. ENERGY                POLICY      AND
CONSERVATION ACT                                         (c)     Implementing restrictions -- In order to
                                                         implement any rule promulgated under subsection (a)
        Note: Section 103 of The Energy Policy and       of this section, the President may request and, if so, the
        Conservation Act, Pub L. 94-163, December        Secretary of Commerce shall, pursuant to the
        22, 1975, 89 Stat. 877, is codified at 42        procedures established by the Export Administration
        U.S.C. 6212.                                     Act of 1979 (but without regard to the phrase “and to
                                                         reduce the serious inflationary impact of foreign

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demand” in section 3(2)(C) of such Act), impose such                apply, in lieu of this chapter, to any violation
restrictions as specified in any rule under subsection              of such restrictions.
(a) of this section on exports of coal, petroleum
products, natural gas, or petrochemical feedstocks,        (f) Quarterly reports to Congress -- The President
and such supplies of materials and equipment.              shall submit quarterly reports to the Congress
                                                           concerning the administration of this section and any
(d) Restrictions and national interest -- Any finding      findings made pursuant to subsection (a) or (b) of this
by the President pursuant to subsection (a) or (b) of      section.
this section and any action taken by the Secretary of
Commerce pursuant thereto shall take into account the
national interest as related to the need to leave          Part III.2.b. EXPORTS OF ALASKA NORTH
uninterrupted or unimpaired --                             SLOPE OIL

        (1) exchanges in similar quantity for                       Note: Section 201 of the Alaska Power
        convenience or increased efficiency of                      Administration Asset Sale and Termination
        transportation with persons or the                          Act, Pub. L. 104-58, November 28, 1995, 109
        government of a foreign state,                              Stat. 557, to be codified at 30 U.S.C. 185(s),
                                                                    provides authority for exports of Alaskan
        (2) temporary exports for convenience or                    North Slope oil.
        increased efficiency of transportation across
        parts of an adjacent foreign state which
        exports reenter the United States, and             Section 201     Exports of Alaskan North Slope Oil

        (3) the historical trading relations of the        Section 28 of the Mineral Leasing Act (30 U.S.C. 185)
        United States with Canada and Mexico.              is amended by amending subsection (s) to read as
                                                           follows:
(e) Waiver of notice and comment period
                                                           (s) EXPORTS OF ALASKAN NORTH SLOPE OIL
        (1) The provisions of subchapter II of
        chapter 5 of Title 5 shall apply with respect to    (1) Subject to paragraphs (2) through (6) of this
        the promulgation of any rule pursuant to this      subsection and notwithstanding any other provision of
        section, except that the President may waive       this Act or any other provision of laws (including any
        the requirement pertaining to the notice of        regulation) applicable to the export of oil transported
        proposed rulemaking or period for comment          by pipeline over right-of-way granted pursuant to
        only if he finds that compliance with such         section 203 of the Trans-Alaska Pipeline
        requirements may seriously impair his ability      Authorization Act (43 U.S.C. 1652), such oil may be
        to impose effective and timely prohibitions        exported unless the President finds that exportation of
        on exports.                                        this oil is not in the national interest. The President
                                                           shall make his national interest determination within
        (2) In the event such notice and comment           five months of the date of enactment of this
        period are waived with respect to a rule           subsection. In evaluating whether exports of this oil
        promulgated under this section, the President      are in the national interest, the President shall at a
        shall afford interested persons an opportunity     minimum consider--
        to comment on any such rule at the earliest
        practicable date thereafter.                                (A) whether exports of this oil would
                                                           diminish the total quantity or quality of petroleum
        (3) If the President determines to request         available to the United States;
        the Secretary of Commerce to impose
        specified restrictions as provided for in                    (B)      the results of an appropriate
        subsection (c) of this section, the                environmental review, including consideration of
        enforcement and penalty provisions of the          appropriate measures to mitigate any potential adverse
        Export Administration Act of 1979 shall            effects of exports of this oil on the environment, which

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shall be completed within four months of the date of       further finds that these supply shortages or price
the enactment of this subsection; and                      increases have caused or are likely to cause sustained
                                                           material adverse employment effects in the United
         (C) whether exports of this oil are likely to     States, the Secretary of Commerce, in consultation
cause sustained material oil supply shortages or           with the Secretary of Energy, shall recommend, and
sustained oil prices significantly above world market      the President may take, appropriate action concerning
levels that would cause sustained material adverse         exports of this oil, which may include modifying or
employment effects in the United States or that would      revoking authority to export such oil.
cause substantial harm to consumers, including
noncontiguous States and Pacific territories.              (6) Administrative action under this subsection is not
                                                           subject to sections 551 and 553 through 559 of title 5,
If the President determines that exports of this oil are   United States Code.
in the national interest, he may impose such terms and
conditions (other than a volume limitation) as are
necessary or appropriate to ensure that such exports       Part III.2.c. MINERAL LEASING ACT OF 1920
are consistent with the national interest.
                                                                    Note: Section 101 of Pub. L. 93-153 of
(2) Except in the case of oil exported to a country                 November 16, 1973, 87 Stat. 576, codified at
with which the United States entered into a bilateral               30 U.S.C. 185(u), amended Section 28 of the
international oil supply agreement before November                  Mineral Leasing Act of 1920 to provide for
26, 1979, or to a country pursuant to the International             limitations on exports of domestically
Emergency Oil Sharing Plan of the International                     produced crude oil transported by pipeline
Energy Agency, any oil transported by pipeline over                 over certain rights-of-way.
right-of-way granted pursuant to section 203 of the
Trans-Alaska Pipeline Authorization Act (43 U.S.C.                               Section 101
1652) shall, when exported, be transported by a vessel
documented under the laws of the United States and         Section 28 of the Mineral Leasing Act of 1920 (41
owned by a citizen of the United States (as determined     Stat. 449), as amended (30 U.S.C. 185), is further
in accordance with section 2 of the Shipping Act, 1916     amended to read as follows:
(46 U.S.C. App. 802)).
                                                                             **********
(3) Nothing in this subsection shall restrict the
authority of the President under the Constitution, the     (u) Limitations on export
International Emergency Economic Powers Act (50
U.S.C. 1701 et seq.), the National Emergencies Act         Any domestically produced crude oil transported by
(5) U.S.C. 1601 et seq.), or Part B of title II of the     pipeline over rights-of-way granted pursuant to this
Energy Policy and Conservation Act (42 U.S.C.              section, except such crude oil which is either
6271-76) to prohibit exports.                              exchanged in similar quantity for convenience or
                                                           increased efficiency of transportation with persons or
(4) The Secretary of Commerce shall issue any rules        the government of an adjacent foreign state, or which
necessary for implementation of the President's            is temporarily exported for convenience or increased
national interest determination, including any             efficiency of transportation across parts of an adjacent
licensing requirements and conditions, within 30 days      foreign state and reenters the United States, shall be
of the date of such determination by the President.        subject to all of the limitations and licensing
The Secretary of Commerce shall consult with the           requirements of the Export Administration Act of
Secretary of Energy in administering the provisions of     1979 (50 U.S.C. App. 2401 and following) and, in
this subsection.                                           addition, before any crude oil subject this section may
                                                           be exported under the limitations and licensing
(5) If the Secretary of Commerce finds that exporting      requirements and penalty and enforcement provisions
oil under authority of this subsection has caused          of the Export Administration Act of 1979 the
sustained material oil supply shortage or sustained oil    President must make and publish an express finding
prices significantly above world market levels and         that such exports will not diminish the total quantity or

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quality of petroleum available to the Unites States, and   requirement and penalty and enforcement provisions
are in the national interest and are in accord with the    of the Export Administration Act of 1979, the
provisions of the Export Administration Act of 1979:       President must make and publish an express finding
Provided, That the President shall submit reports to       that such exports will not diminish the total quality or
the Congress containing findings made under this           quantity of petroleum available to the United States
section, and after the date of receipt of such report      and that such exports are in the national interest and
Congress shall have a period of sixty calendar days,       are in accord with the Export Administration Act of
thirty days of which Congress must have been in            1979.
session, to consider whether exports under the terms
of this section are in the national interest. If the
Congress within this time period passes a concurrent       Part III.2.e. OUTER CONTINENTAL SHELF
resolution of disapproval stating disagreement with        LANDS ACT AMENDMENTS OF 1978
the President's finding concerning the national
interest, further exports made pursuant to the                       Note: Section 208 of the Outer Continental
aforementioned Presidential finding shall cease.                     Shelf Lands Act Amendments of 1978, Pub. L.
                                                                     95-372, September 18, 1978, 92 Stat. 668,
                                                                     codified at 43 U.S.C. 1354, added section 28
Part III.2.d.  NAVAL    PETROLEUM                                    to the Outer Continental Shelf Lands Act of
RESERVES PRODUCTION ACT                                              1953 to limit exports of any oil or gas
                                                                     produced from the outer Continental Shelf.
         Note:     Section 201(11) of the Naval
         Petroleum Reserves Production Act, Pub. L.                              Section 208
         94-258, April 5, 1976, 90 Stat. 303, codified
         at 10 U.S.C. 7430(e), provides for limitations    The Outer Continental Shelf Lands Act (43 U.S.C.
         on exports of petroleum produced from the         1331 et seq.) is amended by adding at the end thereof
         Naval Petroleum Reserves.                         the following new sections:

                     Section 201                                             **********

Chapter 641 of title 10, United States Code, is            Sec. 28    Limitations on Export --
amended as follows:
                                                           (a) Except as provided in subsection (d) of this
                  **********                               section, any oil or gas produced from the outer
                                                           Continental Shelf shall be subject to the requirements
(11) The text of section 7430 is amended to read as        and provisions of the Export Administration Act of
follows:                                                   1969 (sic).

                  **********                               (b) Before any oil or gas subject to this section may be
                                                           exported under the requirements and provisions of the
         (e) Any petroleum produced from the naval         Export Administration Act of 1969 (sic), the President
petroleum reserves, except such petroleum which is         shall make and publish an express finding that such
either exchanged in similar quantities for convenience     exports will not increase reliance on imported oil or
or increased efficiency of transportation with persons     gas, are in the national interest, and are in accord with
or the government of an adjacent foreign state, or         the provisions of the Export Administration Act of
which is temporarily exported for convenience or           1969 (sic).
increased efficiency of transportation across parts of
an adjacent foreign state and reenters the United          (c) The President shall submit reports to Congress
States, shall be subject to all of the limitations and     containing findings made under this section, and after
licensing requirements of the Export Administration        the date of receipt of such reports Congress shall have
Act of 1979 (50 U.S.C. App. 2401 et seq.) and, in          a period of sixty calendar days, thirty days of which
addition, before any petroleum subject to this section     Congress must have been in session, to consider
may be exported under the limitations and licensing        whether export under the terms of this section are in

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the national interest. If the Congress within such          Cuba.
time period passes a concurrent resolution of
disapproval stating disagreement with the President's       (c) Exports of Medicines and Medical Supplies --
finding concerning the national interest, further           Exports of medicines or medical supplies,
exports made pursuant to such Presidential findings         instruments, or equipment to Cuba shall not be
shall cease.                                                restricted --

(d) The provisions of this section shall not apply to           (1) except to the extend such restrictions would
any oil or gas which is either exchanged in similar             be permitted under section 5(m) of the Export
quantity for convenience or increase efficiency of              Administration Act of 1979 or section 203(b)(2)
transportation with persons or the government of a              of the International Emergency Economic Powers
foreign state, or which is temporarily exported for             Act;
convenience or increased efficiency of transportation
across parts of an adjacent foreign state and reenters          (2) except in a case in which there is a reasonable
the United States, or which is exchanged or exported            likelihood that the item to be exported will be
pursuant to an existing international agreement.                used for purposes of torture or other human rights
                                                                abuses;

Part III.3. CUBAN DEMOCRACY ACT OF                              (3) except in a case in which there is a reasonable
1992, AS AMENDED                                                likelihood that the item to be exported will be
                                                                reexported; and
         Note: The Cuban Democracy Act comprises
         1701 - 1712 of the National Defense                    (4) except in a case in which the item to be
         Authorization Act for Fiscal Year 1993, Pub.           exported could be used in the production of any
         L. 102-484, October 23, 1992, 106 Stat.                biotechnological product.
         2575.      The Cuban Democracy Act is
         codified at 22 U.S.C.A. 6001 - 6010. The           (d) Requirements for Certain Exports --
         Cuban Liberty and Democratic Solidarity
         (Libertad) Act of 1996, Pub. L. 104-114,               (1) Onsite verifications --
         March 12, 1996 (also known as the
         “Helms-Burton Act”, amended certain                             (A) Subject to subparagraph (B), an
         sections of the Cuban Democracy Act.                            export may be made under subsection (c)
         Only'1705 - 1706 (22 U.S.C. 6004 - 6005),                       only if the President determines that the
         as amended, are relevant to Bureau of                           United States Government is able to
         Industry and Security activities and are set                    verify, by onsite inspections and other
         forth below.                                                    appropriate means, that the exported
                                                                         item is to be used for the purposes for
                                                                         which it was intended and only for the
  Section 1705      Support for the Cuban People                         use and benefit of the Cuban people.

(a)       Provisions of Law Affected -- The provisions                   (B) Subparagraph (A) does not apply to
of this section apply notwithstanding any other                          donations      of    non-governmental
provision of law, including section 620(a) of the                        organizations in Cuba of medicines for
Foreign Assistance Act of 1961, and notwithstanding                      humanitarian purposes.
the exercise of authorities, before the enactment of this
Act, under section 5(b) of the Trading With the Enemy           (2) Licenses -- Exports permitted under
Act, the International Emergency Economic Powers                subsection (c) shall be made pursuant to specific
Act, or the Export Administration Act of 1979.                  licenses issued by the United States Government.

(b) Donations of Food -- Nothing in this or any other       (e) Telecommunications Services and Facilities17
Act shall prohibit donations of food to
nongovernmental organizations or individuals in                            17
                                                                                Subsections (5) and (6) were added by

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                                                               (including by donation) of funds or anything of
    (1) Telecommunications          Services     --            value to or for, and the making of loans to or for,
    Telecommunications services between the United             such network.
    States and Cuba shall be permitted.
                                                               (6) Reports to Congress -- The President shall
    (2) Telecommunications        Facilities     --            submit to the Congress on a semiannual basis a
    Telecommunications facilities are authorized in            report detailing payments made to Cuba by any
    such quantity and of such quality as may be                United States person as a result of the provision of
    necessary to provide efficient and adequate                telecommunications services authorized by this
    telecommunications services between the United             subsection.
    States and Cuba.
                                                           (f) Direct Mail Delivery to Cuba -- The United Stat-
    (3) Licensing of Payments to Cuba                      ed Postal Service shall take such actions as are
                                                           necessary to provide direct mail service to and from
         (A) The President may provide for the             Cuba, including , in the absence of common carrier
         issuance of licenses for the full or partial      service between the two countries, the use of charter
         payment to Cuba of amounts due Cuba as a          service providers.
         result of the provision of telecommunications
         services authorized by this subsection, in a      (g) Assistance to Support Democracy in Cuba -- The
         manner that is consistent with the public         United States Government may provide assistance,
         interest and the purposes of this title, except   through appropriate nongovernmental organizations,
         that this paragraph shall not require any         for the support of individuals and organizations to
         withdrawal from any account blocked               promote nonviolent democratic change in Cuba.
         pursuant to regulations issued under section
         5(b) of the Trading With the Enemy Act.                        Section 1706     Sanctions

         (B) If only partial payments are made to          (a) Prohibition on Certain Transactions between
         Cuba under subparagraph (A), the amounts          Certain United States Firms and Cuba
         withheld from Cuba shall be deposited in an
         account in a banking institution in the United        (1) Prohibition -- Notwithstanding any other
         States. Such account shall be blocked in the          provision of law, no license may be issued for any
         same manner as any other account containing           transaction described in section 515.559 of title
         funds in which Cuba has any interest,                 31, Code of Federal Regulations, as in effect on
         pursuant to regulations issued under section          July 1, 1989.
         5(b) of the Trading With the Enemy Act.
                                                               (2) Applicability to Existing Contracts --
    (4) Authority of the Federal Communications                Paragraph (1) shall not affect any contract entered
    Commission -- Nothing in this subsection shall be          into before the date of the enactment of this Act.
    construed to supersede the authority of the
    Federal Communications Commission.                     (b) Prohibitions on Vessels

    (5) Prohibition on Investment in Domestic                  (1) Vessels Engaging in Trade -- Beginning on
    Telecommunications Services -- nothing in this             the 61st day after the date of enactment of this
    subsection shall be construed to authorize the             Act, a vessel which enters a port or place in Cuba
    investment by any United States person in the              to engage in the trade of goods or services may
    domestic telecommunications network within                 not, within 180 days after departure from such
    Cuba. For purposes of the paragraph, an                    port or place in Cuba, load or unload any freight
    “investment” in the domestic telecommunications            at any place in the United States, except pursuant
    network within Cuba includes the contribution              to a license issued by the Secretary of the
                                                               Treasury.
the Cuban Liberty and Solidarity (Libertad) Act of 1996.
                                                               (2) Vessels Carrying Goods or Passengers to or

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    from Cuba -- Except as specifically authorized by       Part III.4. CUBAN LIBERTY AND
    the Secretary of the Treasury, a vessel carrying        DEMOCRATIC SOLIDARITY (LIBERTAD)
    goods or passengers to or from Cuba or carrying         ACT OF 1996
    goods in which Cuba or a Cuban national has any
    interest may not enter a United States port.                Note: The Cuban Liberty and Democratic
                                                                Solidarity (Libertad) Act of 1996, Pub. L.
    (3) Inapplicability of Ship Store General License           104-114, March 12, 1996 (also known as the
    -- No commodities which may be exported under               “Helms-Burton Act”, is codified as a note to 22
    a general license described in section 771.9 of             U.S.C. 6001, except for those provisions
    title 15, Code of Federal Regulations, as in effect         amending the Cuban Democracy Act of 1992, the
    on May 1, 1992, may be exported under a general             Trading with the Enemy Act, the Foreign
    license to any vessel carrying goods or passengers          Assistance Act of 1961 and the International
    to or from Cuba or carrying goods in which Cuba             Claims Settlement Act of 1949. Only portions of
    or a Cuban national has an interest.                        Sections 102, 109 and 114 of the Act, codified at
                                                                22 U.S.C. 6032, 6039, and 6044, are relevant to
    (4) Definitions -- As used in this subsection --            Bureau of Industry and Security activities and are
                                                                set forth below.
         (A) the term “vessel” includes every
         description of water craft or other
         contrivance used, or capable of being used,        Sec. 102   Enforcement          of    the    Economic
         as a means of transportation in water, but         Embargo of Cuba
         does not include aircraft;
                                                            (a) Policy
         (B) The term “United States” includes the
         territories and possessions of the United              (1)     Restrictions by Other Countries -- The
         States and the customs waters of the United            Congress hereby reaffirms section 1704(a) of the
         States (as defined in section 401 of the Tariff        Cuban Democracy Act of 1992, which states that
         Act of 1930 (19 U.S.C. 1401)); and                     the president should encourage foreign countries
                                                                to restrict trade and credit relations with Cuba in a
         (C) The term “Cuban national” means a                  manner consistent with the purposes of that Act.
         national of Cuba, as the term “national” is
         defined in section 515.302 of title 31, Code           (2)      Sanctions on other Countries -- The
         of Federal Regulations, as of August 1, 1992.          Congress further urges the president to take
                                                                immediate steps to apply the sanctions described
(c) Restrictions on Remittances to Cuba -- The                  in Section 1704(b)(1) of the Act against countries
President shall establish strict limits on remittances to       assisting Cuba.
Cuba by United States persons for the purpose of
financing the travel of Cubans to the United States, in     (b) Diplomatic efforts -- the Secretary of State should
order to ensure that such remittances reflect only the      ensure that United States diplomatic personnel abroad
reasonable costs associated with such travel, and are       understand and, in their contacts with foreign officials,
not used by the Government of Cuba as a means of            are communicating the reasons for the United States
gaining access to United States currency.                   economic embargo of Cuba, and are urging foreign
                                                            governments to cooperate more effectively with the
(d) Clarification of Applicability of Sanctions -- The      embargo.
prohibitions contained in subsections (a), (b), and (c)
shall not apply with respect to any activity otherwise      (c) Existing regulations -- The President shall
permitted by section 1705 or section 1707 of the Act        instruct the Secretary of the Treasury and the Attorney
or any activity which may not be regulated or               General to enforce fully the Cuban Assets Control
prohibited under section 5(b)(4) or the Trading With        Regulations set forth in Part 515 of Title 31, Code of
the Enemy Act (50 U.S.C. App. 5(b)(4)).                     Federal Regulations.

                                                                             ***********

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                                                               (1) Published and informational matter, such as
(g) Telecommunications Services -- Section 1701(e)             books, videos, and cassettes, on transitions to
of the Cuban Democracy Act of 1992 (22 U.S.C.                  democracy, human rights, and market economies,
6004(e)) is amended by adding at the end the                   to be made available to independent democratic
following new paragraphs:                                      groups in Cuba.

         (5) Prohibition on investment in domestic             (2) Humanitarian assistance to victims of
         telecommunications services -- nothing in             political repression, and their families
         this subsection shall be construed to
         authorize the investment by any United                (3) Support for democratic and human rights
         States     person     in     the   domestic           groups in Cuba.
         telecommunications network within Cuba.
         For purposes of the paragraph, an                     (4) Support for visits and permanent deployment
         “investment”       in      the     domestic           of independent international human rights
         telecommunications network within Cuba                monitors in Cuba.
         includes the contribution (including by
         donation) of funds or anything of value to or                       **********
         for, and the making of loans to or for, such
         network.                                          (c) Denial of Funds to the Cuban Government.- In
                                                           implementing this section, the President shall take all
         (6) Reports to Congress -- The President          necessary steps to ensure that no funds or other
         shall submit to the Congress on a semiannual      assistance is provided to the Cuban Government.
         basis a report detailing payments made to
         Cuba by any United States person as a result
         of the provision of telecommunications            Section 114    News Bureaus in Cuba
         services authorized by this subsection.
                                                           (a) Establishment of news Bureaus -- The President
(h) Codification of Economic Embargo -- The                is authorized to establish and implement an exchange
economic embargo of Cuba, as in effect on March 1,         of news bureaus between the United States and Cuba,
1996, including all restrictions under Part 515 of Title   if the exchange meets the following conditions:
31, Code of Federal Regulations, shall be in effect
upon the enactment of this Act, and shall remain in            (1) The Exchange is fully reciprocal.
effect, subject to Section 204 of this Act.
                                                               (2) The Cuban Government agrees not to
                                                               interfere with the establishment of news bureaus
Section 109 Authorization of Support for                       of with the movement in Cuba of journalists of
Democratic and Human Rights Groups and                         any United States-based news organizations,
International Observers                                        including Radio Marti and Television Marti.

(a) Authorization -- Notwithstanding any other                 (3) The Cuban Government agrees not to
provision of law (including Section 102 of this Act),          interfere with decisions of United States-based
except for section 634A of the Foreign Assistance Act          news organizations with respect to individuals
of 1961 (22 U.S.C. 2394-1) and comparable                      assigned to work as journalists in their news
notification requirements contained in any act making          bureaus in Cuba.
appropriations for foreign operations, export
financing, and related programs, the President is              (4) The Department of the Treasury is able to
authorized to furnish assistance and provide other             ensure that only accredited journalists regularly
support     for     individuals    and    independent          employed with a news gathering organization
nongovernmental        organizations    to     support         travel to Cuba under this subsection.
democracy-building efforts for Cuba, including the
following:                                                     (5) The Cuban Government agrees not to
                                                               interfere with  the   transmission  of

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    telecommunications signals of news bureaus or
    with the distribution within Cuba of publications            (1) Criminal penalty.         Any person who
    of any United States-based news organization that            knowingly violates this section or any regulation,
    has a news bureau in Cuba.                                   order, or license issued under this section shall be
                                                                 fined not more than 5 times the value of the
(b) Assurance Against Espionage -- In implementing               consignment of horses involved or $50,000,
this section, the President shall take all necessary steps       whichever is greater, or imprisoned not more than
to ensure the safety and security of the United States           5 years, or both.
against espionage by Cuban journalists it believes to
be working for the intelligence agencies of the Cuban            (2) Civil penalty. The Secretary of Commerce,
Government.                                                      after providing notice and an opportunity for an
                                                                 agency hearing on the record, may impose a civil
(c) Fully Reciprocal -- As used in subsection (a)(1),            penalty of not to exceed $10,000 for each
the term “fully reciprocal” means that all news                  violation of this section or any regulations, order,
services, news organizations, and broadcasting                   or license issued under this section, either in
services, including such services or organizations that          addition to or in lieu of any other liability or
receive financing, assistance, or other support from a           penalty which may be imposed.
governmental or official source, are permitted to
establish and operate a news bureau in the United
States and Cuba.                                             Part III.6. MISSILE                  TECHNOLOGY
                                                             CONTROLS POLICY

Part III.5.   EXPORT OF HORSES                                   Note: Title XVII of the National Defense
                                                                 Authorization Act for FY 1991, Pub. L. 101-510,
    Note: This provision was enacted by 125 of the               November 5, 1990, 104 Stat. 1738, established
    Export Administration Amendments Act of 1985,                missile technology controls.      Section 1701,
    Pub. L. 99-64, July 12, 1985, 99 Stat. 156, and is           codified as a note to 50 U.S.C. app. 2402 (the
    codified at 46 U.S.C.A. app. 466c. A previous                Export Administration Act), sets forth the U.S.
    provision, identical except that it did not include a        missile technology control policy. Section 1702
    penalties section, was codified at 50 U.S.C.A.               added new provisions to section 6 of the Export
    app. 2406(j) (the Export Administration Act of               Administration Act (50 U.S.C. app, 2405); section
    1979) from 1979 to 1985.                                     1703 added new provisions to the Arms Export
                                                                 Control Act of 1979; and section 1704, codified
                                                                 as a note to 22 U.S.C. 2797 (Arms Export Control
(a) Restriction on Export of Horses --                           Act), provided for certain reports on missile
Notwithstanding any other provision of law, no horse             proliferation by the President. Only section
may be exported by sea from the United States, or any            1701 is set forth below.
of its territories or possessions, unless such horse is
part of a consignment of horses with respect to which                        Section 1701     Policy
a waiver has been granted under subsection (b).
                                                                  It should be the policy of the United States to take
(b) Granting of waivers -- The Secretary of                  all appropriate measures --
Commerce, in consultation with the Secretary of
Agriculture, may issue regulations providing for the             (1) to discourage the proliferation, development,
granting of waivers permitting the export by sea of a            and production of the weapons, material, and
specified consignment of horses, if the Secretary of             technology necessary to produce or acquire
Commerce, in consultation with the Secretary of                  missiles that can deliver weapons of mass
Agriculture, determines that no horse in that                    destruction;
consignment is being exported for purposes of
slaughter.                                                       (2) to discourage countries and private persons
                                                                 in other countries from aiding and abetting any
(c) Penalties                                                    states from acquiring such weapons, material, and

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    technology;                                            shall continue to suspend the issuance of any new
                                                           insurance, reinsurance, guarantees, financing, or
    (3) to strengthen United States and existing           other financial support with respect to the
    multilateral export controls to prohibit the flow of   People’s Republic of China, unless the President
    materials, equipment, and technology that would        makes a report under subsection (b)(1) or (2) of
    assist countries in acquiring the ability to produce   the section.
    or acquire missiles that can deliver weapons of
    mass destruction, including missiles, warheads         (2) Trade and Development Program -- The
    and weaponization technology, targeting                President shall suspend the obligation of funds
    technology, test and evaluation technology, and        under the Foreign Assistance Act of 1961 for any
    range and weapons effect measurement                   new activities of the Trade and Development
    technology, and                                        Program with respect to the People’s Republic of
                                                           China, unless the President makes a report under
    (4) with respect to the Missile Technology             subsection (b)(1) or (2) of this section.
    Control Regime (“MTCR”) and its participating
    governments --                                         (3) Munitions Export Licenses --

        (A) to improve enforcement and seek a                  (A) The issuance of licenses under section
        common and stricter interpretation among               38 of the Arms Export Control Act for the
        MTCR members of MTCR principles;                       export to the People’s Republic of China of
                                                               any defense article on the United States
        (B) to increase the number of countries that           Munitions List, including helicopters and
        adhere to the MTCR; and                                helicopter parts, shall continue to be
                                                               suspended, subject to subparagraph (B),
        (C) to increase information sharing among              unless the President makes a report under
        United States agencies and among                       subsection (b)(1) or (2) of this section.
        governments on missile technology transfer,
        including export licensing, and enforcement            (B) The suspension set forth in subparagraph
        activities.                                            (a) shall not apply to systems and
                                                               components designed specifically for
                                                               inclusion in civil products and controlled as
Part III.7. “TIANANMEN                       SQUARE            defense articles only for purposes of export
SANCTIONS” PROVISIONS                                          to a controlled country, unless the President
                                                               determines that the intended recipient of such
    Note: Section 902 of the Foreign Relations                 items is the military or security forces of the
    Authorization Act for Fiscal Years 1990 and                People’s Republic of China.
    1991, Pub. L. 101-246, February 16, 1990, 104
    Stat. 83, codified as a note to 22 U.S.C. 2151,        (4) Crime Control and Detection Instruments
    imposed sanctions on the People’s Republic of          and Equipment -- The issuance of any license
    China in the wake of the June 4, 1989 military         under section 6(k) of the Export Administration
    assault on pro-democracy demonstrators in              Act of 1979 for the export to the People’s
    Tiananmen Square, and in response to the               Republic of China of any crime control or
    continued suppression of the pro-democracy             detection instruments or equipment shall be sus-
    movement by the PRC Government.                        pended, unless the President makes a report under
                                                           subsection (b)(1) or (2) of this section.
Sec. 902     Suspension of Certain Programs and
Activities                                                 (5) Export of Satellites for Launch by the
                                                           People’s Republic of China -- Exports of any
(a) Suspensions --                                         satellite of United States origin that is intended
                                                           for launch from a launch vehicle owned by the
    (1) Overseas Private Investment Corporation --         People’s Republic of China shall remain sus-
    The Overseas Private Investment Corporation            pended, unless the President makes a report under

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    subsection (b)(1) or (2) of this section.                            assist any nonnuclear-weapon state,
                                                                         either directly or indirectly, in acquiring
    (6) Nuclear Cooperation with the People’s                            nuclear explosive devices or the
    Republic of China                                                    materials and components for such
                                                                         devices;
        (A) Any --
                                                                         (ii) the      President  makes     the
             (i) application for a license under the                     certifications and submits the report
             Export Administration Act of 1979 for                       required by Public Law 99-183; and
             the export to the People’s Republic of
             China for use in a nuclear production or                    (iii) the President makes a report under
             utilization facility of any goods or                        subsection (b)(1) or (2) of this section.
             technology which, as determined under
             section 309(c) of the Nuclear                           (C) For purposes of this paragraph, the term
             Non-Proliferation Act of 1978, could be                 “Agreement” means the Agreement for
             of significance for nuclear explosive                   Cooperation Between the Government of the
             purposes, or which, in the judgment of                  United States of America and the
             the President, is likely to be diverted for             Government of the People’s Republic of
             use in such a facility, for any nuclear                 China Concerning Peaceful Uses of
             explosive device, or for research on or                 Nuclear Energy (done on July 23, 1985).
             development of any nuclear explosive
             device, shall be suspended,                        (7) Liberalization of Export Controls

             (ii) application for a license for the                  (A) The President shall negotiate with the
             export to the People’s Republic of China                governments participating in the group
             of any nuclear material, facilities, or                 known as the Coordinating Committee
             components subject to the Agreement                     (COCOM) to suspend, on a multilateral
             shall be suspended,                                     basis, any liberalization by the Coordinating
                                                                     Committee of controls on exports of goods
             (iii) approval for the transfer or re-                  and technology to the People’s Republic of
             transfer to the People’s Republic of                    China under section 5 of the Export
             China or any nuclear material, facilities,              Administration Act of 1979, including --
             or components subject to the Agreement
             shall not be given, and                                     (i) the implementation of bulk
                                                                         licenses for exports to the People’s
             (iv) specific      authorization      for                   Republic of China; and
             assistance in any activities with respect
             to the People’s Republic of China                           (ii) the raising of the performance
             relating to the use of nuclear energy                       levels or goods or technology below
             under section 57b(2) of the Atomic                          which no authority or permission to
             Energy Act of 1954 shall not be given;                      export to the People’s Republic of China
                                                                         would be required.
    Until the conditions specified in subparagraph (b)
are met.                                                    (b) Termination of Suspensions -- A report referred
                                                            to in subsection (a) is a report by the President to the
        (B) Subparagraph (A) applies until --               Congress either:

             (i) the President certifies to the                 (1) that the Government of the People’s
             Congress that the People’s Republic of             Republic of China has made progress on a
             China has provided clear and                       program of political reform throughout the
             unequivocal assurances to the United               country, including Tibet, which includes:
             States that it is not assisting and will not

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         (A) lifting of martial law;                                 Cambodian independence, facilitate an act of
                                                                     self-determination by the Cambodian people,
          (B) halting of executions and other reprisals              and prevent the Khmer Rouge from returning
against individuals for the nonviolent expression of                 to exclusive power;
their political beliefs;
                                                                (4) the status of programs and activities
         (C) release of political prisoners;                    suspended under subsection (a); and

         (D) increased respect for internationally              (5) the additional measures taken by the
         recognized human rights, including freedom             President under section 901(c) if repression in
         of expression, the press, assembly, and                China deepens.
         association; and

         (E) permitting a freer flow of information,        Part III.8.   IRAQ SANCTIONS ACT OF 1990
         including an end to the jamming of Voice of
         America and greater access for foreign                 Note: The Iraq Sanctions Act of 1990 was enacted
         journalists; or                                        as 586 through 586J of the Foreign Operations
                                                                Appropriations Act of 1990, Pub. L. 101-513,
    (2) that it is in the national interest of the United       November 5, 1990, 104 Stat. 2047, and is codified
    States to terminate a suspension under subsection           as a note to 50 U.S.C.A. 1701 . Sections 586C
    (a)(1), (2), (3), (4), or (5), to terminate a               through 586I are relevant to Bureau of Industry
    suspension or disapproval under subsection                  and Security activities, and are set forth below.
    (a)(6), or to terminate the opposition required by
    subsection (a)(7), and the case may be.                                Sec. 586      Short Title

(c) Reporting Requirement -- Sixty days after the           Sections 586 through 586J of this Act may be cited as
date of enactment of this Act, the President shall          the “Iraq Sanctions Act of 1990.”
submit to the Congress a report on
                                                                              **********
    (1) any steps taken by the Government of China
    to achieve the objectives described in subsection           Sec. 586C       Trade embargo against Iraq
    (b)(1);
    (2) the effect of multilateral sanctions on             (a) Continuation of embargo -- Except as otherwise
    political and economic developments in China            provided in this section, the President shall continue to
    and on China’s international economic relations;        impose the trade embargo and other economic
                                                            sanctions with respect to Iraq and Kuwait that the
    (3) the impact of the President’s actions               United States is imposing, in response to Iraq’s
    described in section 901(a)(9) and the                  invasion of Kuwait, pursuant to Executive Orders
    suspensions under subsection (a) of this section        Numbered 12724 and 12725 (August 9, 1990) and, to
    on :                                                    the extent they are still in effect, Executive Orders
                                                            Numbered 12722 and 12723 (August 2, 1990).
         (A) political and economic developments in         Notwithstanding any other provision of law, no funds,
         China;                                             credits, guarantees, or insurance appropriated or
                                                            otherwise made available by this or any other Act for
         (B) the standard of living of the Chinese          fiscal year 1991 or any fiscal year thereafter shall be
         people;                                            used to support or administer any financial or
                                                            commercial operation of any United States
         (C) relations between the United States and        Government department, agency, or other entity, or of
         China; and                                         any person subject to the jurisdiction of the United
                                                            States, for the benefit of the Government of the Iraq,
         (D) the actions taken by China to promote a        its agencies or instrumentalities, or any person work-
         settlement in Cambodia which will ensure           ing on behalf of the Government of Iraq, contrary to

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the trade embargo and other economic sanctions             appropriated or otherwise made available pursuant to
imposed in accordance with this section.                   this Act to carry out the Foreign Assistance Act of
                                                           1961 (including title IV of chapter 2 of part I, relating
(b) Humanitarian assistance -- To the extent that          to the Overseas Private Investment Corporation) or the
transactions involving foodstuffs or payments for          Arms Export Control Act may be used to provide
foodstuffs are exempted “in humanitarian                   assistance to any country that is not in compliance
circumstances” from the prohibitions established by        with the United Nations Security Council sanctions
the United States pursuant to United Nations Security      against Iraq unless the President determines and so
Council Resolution 661 (1990), those exemptions            certifies to the Congress that:
shall be limited to foodstuffs that are to be provided
consistent with United Nations Security Council                (1) such assistance is in the national interest of
Resolution 666 (1990) and other relevant Security              the United States;
Council resolutions.
                                                               (2) such assistance will directly benefit the
(c) Notice to Congress of exceptions to and                    needy people in that country; or
termination of sanctions --
                                                               (3) the assistance to be provided will be
    (1) Notice of regulations -- Any regulations               humanitarian assistance for foreign nationals who
    issued after the date of enactment of this Act with        have fled Iraq and Kuwait.
    respect to the economic sanctions imposed with
    respect to Iraq and Kuwait by the United States        (b) Import sanctions -- If the President considers that
    under Executive Orders Numbered 12722 and              the taking of such action would promote the
    12723 (August 2, 1990) and Executive Orders            effectiveness of the economic sanctions of the United
    Numbered 12724 and 12725 (August 9, 1990)              Nations and the United States imposed with respect to
    shall be submitted to the Congress before those        Iraq, and is consistent with the national interest, the
    regulations take effect.                               President may prohibit, for such a period of time as he
                                                           considers appropriate, the importation into the United
    (2) Notice of termination of sanctions -- The          States of any or all products of any foreign country
    President shall notify the Congress at least 15        that has not prohibited:
    days before the termination, in whole or in part, of
    any sanction imposed with respect to Iraq or               (1) the importation of products of Iraq into its
    Kuwait pursuant to those Executive orders.                 customs territory; and

(d) Relation to other laws                                     (2) the export of its products to Iraq.

    (1) Sanctions legislation -- The sanctions that are     Sec. 586E      Penalties for violations of embargo
    described in subsection (a) are in addition to, and
    not in lieu of the sanctions provided for in section   Notwithstanding section 206 of the International
    586G of this Act or any other provision of law.        Emergency Economic Powers Act (50 U.S.C. 1705)
                                                           and section 5(b) of the United Nations Participation
    (2) National emergencies and United Nations            Act of 1945 (22 U.S.C. 287c(b)) --
    legislation -- Nothing in this section supersedes
    any provision of the National Emergencies Act or           (1) a civil penalty of not to exceed $250,000 may
    any authority of the President under the                   be imposed on any person who, after the date of
    International Emergency Economic Powers Act                enactment of this Act, violates or evades or
    or section 5(a) of the United Nations Participation        attempts to violate or evade Executive Order
    Act of 1945.                                               Numbered 12722, 12723, 12724, or 12725 or any
                                                               license, order, or regulation issued under any such
Sec. 586D      Compliance with United Nations                  Executive order; and
sanctions against Iraq
                                                               (2) whoever, after the date of enactment of this
(a) Denial of assistance -- None of the funds                  Act, willfully violates or evades or attempts to

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    violate or evade Executive Order Numbered             Government of Iraq, including summary
    12722, 12723, 12724 or 12725 or any license,          executions,       mass      political    killings,
    order, or regulation issued under any such            disappearances, widespread use of torture,
    Executive order --                                    arbitrary arrests and prolonged detention without
                                                          trial of thousands of political opponents, forced
        (A) shall, upon conviction, be fined not more     relocation and deportation, denial of nearly all
        than $1,000,000 if a person other than a          civil and political rights such as freedom of
        natural person; or                                association, assembly, speech, and the press, and
                                                          the imprisonment, torture, and execution of
        (B) if a natural person, shall, upon              children;
        conviction, be fined not more than
        $1,000,000, be imprisoned for not more than       (5) since 1987, the Government of Iraq has
        12 years, or both.                                intensified its severe repression of the Kurdish
                                                          minority of Iraq, deliberately destroyed more than
Any officer, director, or agent of any corporation who    3,000 villages and towns in the Kurdish regions,
knowingly participates in a violation, evasion, or        and forcibly expelled more than 500,000 people,
attempt described in paragraph (2) may be punished        thus effectively depopulating the rural areas of
by imposition of the fine or imprisonment (or both)       Iraqi Kurdistan;
specified in subparagraph (B) of that paragraph.
                                                          (6) Iraq has blatantly violated international law
    Sec. 586F      Declarations regarding Iraq’s          by initiating use of chemical weapons in the
long-standing violations of international law             Iran-Iraq war;

(a) Iraq’s violations of international law -- The         (7) Iraq has also violated international law by
Congress determines that:                                 using chemical weapons against its own Kurdish
                                                          citizens, resulting in tens of thousands of deaths
    (1) the Government of Iraq has demonstrated           and more than 65,000 refugees;
    repeated and blatant disregard for its obligations
    under international law by violating the Charter of   (8) Iraq continues to expand its chemical wea-
    the United Nations, the Protocol for the              pons capability, and President Sadam Hussein has
    Prohibition of the Use in War of Asphyxiating,        threatened to use chemical weapons against other
    Poisonous or Other Gases, and of Bacteriological      nations;
    Methods of Warfare (done at Geneva, June 17,
    1925), as well as other international treaties;       (9) persuasive evidence exists that Iraq is
                                                          developing biological weapons in violation if
    (2) the Government of Iraq is a party to the          international law;
    International Covenant on Civil and Political
    Rights and the International Covenant on              (10) there are strong indications that Iraq has
    Economic, Social and Cultural Rights and is           taken steps to produce nuclear weapons and has
    obligated under the Covenants, as well as the         attempted to smuggle from the United States, in
    Universal Declaration of Human Rights, to             violation of United States law, components for
    respect internationally recognized human rights;      triggering devices used in nuclear warheads
                                                          whose manufacture would contravene the Treaty
    (3) the State Department’s Country Reports on         on the Non-Proliferation of Nuclear Weapons, to
    Human Rights Practices for 1989 again                 which Iraq is a party; and
    characterizes Iraq’s human rights record as
    “abysmal”;                                            (11) Iraqi President Saddam Hussein has
                                                          threatened to use terrorism against other nations
    (4) Amnesty International, Middle East Watch,         in violation of international law and has increased
    and other independent human rights organizations      Iraq’s support for the Palestine Liberation
    have documented extensive, systematic, and            Organization and other Palestinian groups that
    continuing human rights abuses by the                 have conducted terrorist acts.

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                                                                (3) to induce Iraq to allow appropriate
(b) Human rights violations -- The Congress                     international humanitarian and human rights
determines that the Government of Iraq is engaged in a          organizations to have access to Iraq and Kuwait,
consistent pattern of gross violations of internationally       including the areas in northern Iraq traditionally
recognized human rights. All provisions of law that             inhabited by Kurds.
impose sanctions against a country whose government
is engaged in a consistent pattern of gross violations of           Sec. 586G    Sanctions against Iraq
internationally recognized human rights shall be fully
enforced against Iraq.                                      (a) Imposition -- Except as provided in section 586H,
                                                            the following sanctions shall apply with respect to
(c) Support for international terrorism                     Iraq:
    (1) The Congress determines that Iraq is a
    country which has repeatedly provided support               (1) FMS sales -- The United States Government
    for acts of international terrorism, a country              shall not enter into any sale with Iraq under the
    which grants sanctuary from prosecution to                  Arms Export Control Act.
    individuals or groups which have committed an
    act of international terrorism, and a country which         (2) Commercial arms sales -- Licenses shall not
    otherwise supports international terrorism. The             be issued for the export to Iraq of any item on the
    provisions of law specified in paragraph (2) and            United States Munitions List.
    all other provisions of law that impose sanctions
    against a country which has repeatedly provided             (3) Exports of certain goods and technology --
    support for acts of international terrorism, which          The authorities of section 6 of the Export
    grants sanctuary from prosecution to an                     Administration Act of 1979 (50 U.S.C. App.
    individual or group which has committed an act              2405) shall be used to prohibit the export to Iraq
    of international terrorism, or which otherwise              of any goods or technology listed pursuant to that
    supports international terrorism shall be fully             section or section 5(c)(1) of that Act (50 U.S.C.
    enforced against Iraq.                                      App. 2404(c)(1)) on the control list provided for
                                                                in section 4(b) of that Act (50 U.S.C. App.
    (2) The provisions of law referred to in                    2403(b)).
    paragraph (1) are

         (A) section 40 of the Arms Export Control              (4) Nuclear      equipment,     materials,     and
         Act;                                               technology

         (B) section 620A of the Foreign Assistance                 (A) NRC licenses -- The Nuclear Regulatory
         Act of 1961;                                               Commission shall not issue any license or
                                                                    other authorization under the Atomic Energy
         (C) sections 555 and 556 of this Act (and the              Act of 1954 (42 U.S.C. 2011 and following)
         corresponding sections of predecessor                      for the export to Iraq of any source or special
         foreign operations appropriations Acts);                   nuclear material, and production or
                                                                    utilization facility, any sensitive nuclear
         (D) section 555 of the International Security              technology, any component, item, or
         and Development Cooperation Act of 1985.                   substance determined to have significance
                                                                    for nuclear explosive purposes pursuant to
(d) Multilateral cooperation -- The Congress calls on               section 109b. Of the atomic Energy Act of
the President to seek multilateral cooperation --                   1954 (42 U.S.C. 2139(b)), or any other
                                                                    material or technology requiring such a
    (1) to deny dangerous technologies to Iraq;                     license or authorization.

    (2) to induce Iraq to respect internationally                   (B) Distribution of nuclear materials -- The
    human rights; and                                               authority of the Atomic Energy Act of 1954
                                                                    shall not be used to distribute any special

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         nuclear material, source        material,   or    to the Congress that --
         byproduct material to Iraq.
                                                               (1) the Government of Iraq --
         (C) DOE authorizations -- The Secretary of
         Energy shall not provide a specific                        (A) has demonstrated, through a pattern of
         authorization under section 57(b)(2) of the                conduct, substantial improvement in its
         Atomic Energy Act of 1954 (42 U.S.C.                       respect for internationally recognized human
         2077(b)(2)) for any activity that would                    rights;
         constitute directly or indirectly engaging in
         Iraq in activities that require a specific                 (B) is not acquiring, developing, or
         authorization under that section.                          manufacturing (I) ballistic missiles, (ii)
                                                                    chemical, biological, or nuclear weapons, or
    (5) Assistance from international financial                     (iii)components for such weapons; has
    institutions -- The United States shall oppose any              forsworn the first use of such weapons; and is
    loan or financial or technical assistance to Iraq by            taking substantial and verifiable septs to
    international financial institutions in accordance              destroy or otherwise dispose of any such
    with section 701 of the International Financial                 missiles and weapons it possesses; and
    Institutions Act (22 U.S. C. 262d).
                                                                    (C) does not provide support for international
    (6) Assistance through the Export-Import Bank                   terrorism;
    -- Credits and credit guarantees through the
    Export-Import Bank of the United States shall be           (2) the Government of Iraq is in substantial
    denied to Iraq.                                            compliance with its obligations under
    (7) Assistance through the Commodity Credit                international law, including --
    Corporation -- Credit, credit guarantees, and other
    assistance through the Commodity Credit                         (A) the Charter of the United Nations;
    Corporation shall be denied to Iraq.
                                                                    (B) the International Covenant on Civil and
    (8) Foreign assistance -- All forms of assistance               Political Rights (done at New York,
    under the Foreign Assistance Act of 1961 (22                    December 16, 1966) and the international
    U.S.C. 2151 and following) other than emergency                 Covenant on Economic, Social, and Cultural
    assistance for medical supplies and other forms of              Rights (done at New York, December 16,
    emergency humanitarian assistance, and under                    1966);
    the Arms Export Control Act (22 U.S.C. 2751 and
    following) shall be denied to Iraq.                             (C) the Convention on the Prevention and
                                                                    Punishment of the Crime of Genocide (done
(b) Contract sanctity -- For purposes of the export                 at Paris, December 9, 1948);
controls imposed pursuant to subsection (a)(3), the
date described in subsection (m)(1) of section 6 of the             (D) the Protocol for the Prohibition of the
Export Administration Act of 1979 (50 U.S.C. App.                   Use in War of Asphyxiating, Poisonous or
2405) shall be deemed to be August 1, 1990.                         other Gases, and of Bacteriological Methods
                                                                    of Warfare (done at Geneva, June 17, 1925);
             Sec. 586H     Waiver authority
                                                                    (E) the Treaty of the Non-Proliferation of
(a) In general -- The President may waive the                       Nuclear Weapons (done at Washington,
requirements of any paragraph of section 586G(a) if                 London, and Moscow, July 1, 1968); and
the President makes a certification under subsection
(b) or subsection (c).                                              (F) the Convention on the Prohibition of the
                                                                    Development, Production and Stockpiling of
(b) Certification of fundamental changes in Iraqi                   Bacteriological (Biological) and Toxin
policies and actions -- The authority of subsection (a)             Weapons and on Their Destruction (done at
may be exercised 60 days after the President certifies              Washington, London, and Moscow, April 10,

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         1972); and                                         funds appropriated by this or any other Act may be
                                                            used to approve the licensing for export of any super-
    (3) the President has determined that it is             computer to any country whose government the
    essential to the national interests of the United       President determines is assisting, or whose
    States to exercise the authority of subsection (a).     government officials the President determines are
                                                            assisting, Iraq to improve its rocket technology or
(c) Certification of fundamental changes in Iraqi           chemical, biological, or nuclear weapons capability.
leadership and policies -- The authority of subsection
(a) may be exercised 30 days after the President            (b) Negotiations -- The President is directed to begin
certifies to the Congress that --                           immediate negotiations with those governments with
                                                            which the United States has bilateral supercomputer
    (1) there has been a fundamental change in the          agreements, including the Government of the United
    leadership of the Government of Iraq; and               Kingdom and the Government of Japan, on conditions
                                                            restricting the transfer to Iraq of supercomputer or
    (2) the new Government of Iraq has provided             associated technology.
    reliable and credible assurance that --
                                                                               **********
         (A) it respects internationally recognized
         human rights and it will demonstrate such          Part III.9. IRAN-IRAQ ARMS
         respect through its conduct;                       NON-PROLIFERATION ACT OF 1992
         (B) it is not acquiring, developing, or
         manufacturing, and it will not acquire,                Note: The Iran-Iraq Arms Non-Proliferation Act
         develop, or manufacture (I) ballistic missiles,        of 1992 was enacted as 1601 through 1608 of the
         (ii) chemical, biological or nuclear weapons,          National Defense Authorization Act for Fiscal
         or (iii) components for such weapons; has              Year 1993, Pub. L. 102-484, October 23, 1992,
         forsworn the first use of such weapons; and is         106 Stat. 2571, and is codified as a note to 50
         taking substantial and verifiable steps to             U.S.C.A. 1701. Section 1408(a) through (c) of
         destroy or otherwise dispose of any such               Pub. L. 104-106 (110 Stat. 494), amended
         missiles and weapons it possesses;                     sections 1605 and 1608. Section 1308(g)(1)(C) of
                                                                Pub. L. 107-228 (116 Stat. 1441) amended
         (C) it is not and will not provide support for         section 1607.
         international terrorism; and
                                                                           Sec. 1601 Short Title
         (D) it is and will continue to be in substantial
         compliance with its obligations under              This title may be cited as the “Iran-Iraq Arms
         international law, including all the treaties      Non-Proliferation Act of 1992.”
         specified in subparagraphs (A) through (F) of
         subsection (b)(2).                                           Sec. 1602 United States Policy

(d) Information to be included in certifications -- Any     (a) In general -- It shall be the policy of the United
certification under subsection (b) or (c) shall include     States to oppose, and urgently to seek the agreement
the justification for each determination required by        of other nations also to oppose, any transfer to Iran or
that subsection. The certification shall also specify       Iraq of any goods or technology, including dual-use
which paragraphs of section 586G(a) the President           goods or technology, wherever that transfer could
will waive pursuant to that certification.                  materially contribute to either country's acquiring
                                                            chemical, biological, nuclear, or destabilizing
Sec. 586I Denial of licenses for certain exports to         numbers and types of advanced conventional
        countries assisting Iraq’s rocket or                weapons.
      chemical, biological, or nuclear weapons
                     capability                             (b) Sanctions --

(a) Restriction on export licenses -- None of the               (1) In the furtherance of this policy, the President

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    shall apply sanctions and controls with respect to          sanctioned person.
    Iran, Iraq, and those nations and persons who
    assist them in acquiring weapons of mass                    (2) Export sanction -- For a period of two years,
    destruction in accordance with the Foreign                  the United States Government shall not issue any
    Assistance Act of 1961, the Nuclear                         license for any export by or to the sanctioned
    Non-Proliferation Act of 1978, the Chemical and             person.
    Biological Weapons Control and Warfare
    Elimination Act of 1991, chapter 7 of the Arms              Sec. 1605     Sanctions against certain foreign
    Export Control Act, and other relevant statutes,        countries
    regarding the non-proliferation of weapons of
    mass destruction and the means of their delivery.       (a) Prohibition -- If the President determines that the
                                                            government of any foreign country transfers or
    (2) The President should also urgently seek the         retransfers goods or technology so as to contribute
    agreement of other nations to adopt and institute,      knowingly and materially to the efforts by Iran or Iraq
    at the earliest practicable date, sanctions and         (or any agency or instrumentality of either such
    controls comparable to those the United States is       country) to acquire chemical, biological, or nuclear
    obligated to apply under this subsection.               weapons or acquire destabilizing numbers and types
                                                            of advanced conventional weapons, then --
(c) Public identification -- The Congress calls on the
President to identify publicly (in the report required by       (1) the sanctions described in subsection (b)
section 1607) any country or person that transfers              shall be imposed on such country; and
goods or technology to Iran or Iraq contrary to the
policy set forth in subsection (a).                             (2)in addition, the President may apply, in the
                                                                discretion of the President, the sanction described
  Sec. 1603 Application to Iran of certain Iraq                 in subsection (c).
                  sanctions
                                                            (b) Mandatory sanctions -- Except as provided in
The sanctions against Iraq specified in paragraphs (1)      paragraph (2), the sanctions to be imposed pursuant to
through (4) of section 586G(a) of the Iraq Sanctions        subsection (a)(1) are as follows:
Act of 1990 (as contained in Public Law 101-513),
including denial of export licenses for United States           (1) Suspension of United States assistance --
persons and prohibitions on United States                       The United States Government shall suspend, for
Government sales, shall be applied to the same extent           a period of one year, United States assistance to
and in the same manner with respect to Iran.                    the sanctioned country.

    Sec. 1604     Sanctions against certain persons             (2) Multilateral development bank assistance --
                                                                The Secretary of the Treasury shall instruct the
(a)    Prohibition. -- If any person transfers or               United States Executive Director to each
retransfers goods or technology so as to contribute             appropriate international financial institution to
knowingly and materially to the efforts by Iran or Iraq         oppose, and vote against, for a period of one year,
(or any agency or instrumentality of either such                the extension by such institution of any loan or
country) to acquire destabilizing numbers and types of          financial or technical assistance to the sanctioned
advanced conventional weapons, then the sanctions               country.
described in subsection (b) shall be imposed.
                                                                (3) Suspension      of    codevelopment      or
(b) Mandatory sanctions. -- The sanctions to be                 coproduction agreements -- The United States
imposed pursuant to subsection (a) are as follows:              shall suspend, for a period of one year,
                                                                compliance with its obligations under any
    (1) Procurement sanction -- For a period of two             memorandum or understanding with the
    years, the United States Government shall not               sanctioned country for the codevelopment or
    procure, or enter into any contract for the                 coproduction of any item on the United States
    procurement of, any goods or services from the              Munitions List (established under section 38 of

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    the Arms Export Control Act), including any            authority. Any such report shall provide a specific
    obligation    for   implementation    of   the         and detailed rationale for such determination.
    memorandum of understanding through the sale
    to the sanctioned country of technical data or                 Sec. 1607     Reporting requirement
    assistance or the licensing for export to the
    sanctioned country of any component part.              (a) [Repealed]

    (4) Suspension of military and dual-use technical      (b) Report on individual transfers -- Whenever the
    exchange agreement -- The United States shall          President determines that a person or foreign
    suspend, for a period of one year, compliance          government has made a transfer which is subject to
    with its obligations under any technical exchange      any sanction under this title, the President shall, within
    agreement involving military and dual-use              30 days after such transfer, submit to the Committees
    technology between the United States and the           on Armed Services and Foreign Relations of the
    sanctioned country that does not directly              Senate and the Committees on National Security and
    contribute to the security of the United States, and   International Relations of the House of
    no military or dual-use technology may be              Representatives a report --
    exported from the United States to the sanctioned
    country pursuant to that agreement during that             (1) identifying the person or government and
    period.                                                    providing the details of the transfer; and

    (5) United States Munitions List -- No item on             (2) describing the actions the President intends
    the United States Munitions List (established              to undertake or has undertaken under the
    pursuant to section 38 of the Arms Export Control          provisions of this title with respect to each such
    Act) may be exported to the sanctioned country             transfer.
    for a period of one year.
                                                           (c) Form of transmittal -- Reports required by this
(c) Discretionary sanction -- The Sanction referred to     section may be submitted in classified as well as in
in subsection (a)(2) is as follows:                        unclassified form.

    (1) Use of authorities of International                               Sec. 1608      Definitions
    Emergency Economic Powers Act -- Except as
    provided in paragraph (2), the President may           For purposes of this title:
    exercise, in accordance with the provisions of that
    Act, the authorities of the International                  (1) The term “advanced conventional weapons”
    Emergency Economic Powers Act with respect to              includes --
    the sanctioned country.
                                                                    (A)      such long-range precision-guided
    (2) Exception -- Paragraph (1) does not apply                   munitions, fuel air explosives, cruise
    with respect to urgent humanitarian assistance.                 missiles, low observability aircraft, other
                                                                    radar evading aircraft, advanced military
                 Sec. 1606    Waiver                                aircraft, military satellites, electromagnetic
                                                                    weapons, and laser weapons as the President
The President may waive the requirement to impose a                 determines destabilize the military balance or
sanction described in section 1603,in the case of                   enhance offensive capabilities in destabiliz-
Iran, or a sanction described in section 1604(b) or                 ing ways;
1605(b), in the case of Iraq and Iran, 15 days after the
President determines and so reports to the Committees               (B) such advanced command, control, and
on Armed Services and Foreign Relations of the                      communications systems, electronic warfare
Senate and the Committees on National Security and                  systems, or intelligence collection systems as
International Relations of the House of                             the President determines destabilize the
Representatives that it is essential to the national                military balance or enhance offensive
interest of the United States to exercise such waiver               capabilities in destabilizing ways; and

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                                                                   Bank Act.
        (C) such other items or systems as the
        President may, by regulation, determine
        necessary for purposes of this title.              Part III.10. SANCTIONS AGAINST SERBIA
                                                           AND MONTENEGRO
    (2) The term “cruise missile” means guided
    missiles that use aerodynamic lift to offset gravity       Note: Congress enacted these sanctions against
    and propulsion to counteract drag.                         Serbia and Montenegro in 1511 of the National
                                                               Defense Authorization Act for Fiscal Year 1994,
    (3) The term “goods or technology” means --                Pub. L. 103-160, November 30, 1993, 107 Stat.
                                                               1839, codified as a note to 50 U.S.C.A. 1701.
        (A)    any article, natural or manmade
        substance, material, supply, or manufactured           Sec. 1511    Sanctions Against Serbia and
        product, including inspection and test equip-                         Montenegro
        ment; and
                                                           (a) Codification of executive branch sanctions -- The
        (B)      any information and know-how              sanctions imposed on Serbia and Montenegro, as in
        (whether in tangible form, such as models,         effect on the date of the enactment of this Act, that
        prototypes, drawings, sketches, diagrams,          were imposed by or pursuant to the following
        blueprints, or manuals, or in intangible form,     directives of the executive branch shall (except as
        such as training or technical services) that       provided under subsections (d) and (e)), remain in
        can be used to design, produce, manufacture,       effect until changed by law:
        utilize, or reconstruct goods, including
        computer software and technical data.                  (1) Executive Order 12808 of May 30, 1992, as
                                                               continued in effect on May 25, 1993.
    (4) The term “person” means any United States
    or foreign individual, partnership, corporation, or        (2) Executive Order 12810 of June 5, 1992.
    other form of association, or any of their
    successor entities, parents, or subsidiaries.              (3) Executive Order 12831 of January 15, 1993.

    (5) The term “sanctioned country” means a                  (4) Executive Order 12846 of April 25, 1993.
    country against which sanctions are required to be
    imposed pursuant to section 1605.                          (5) Department of State Public Notice 1427,
                                                               effective July 11, 1991.
    (6) The term “sanctioned person” means a
    person that makes a transfer described in section          (6) Proclamation 6389 of December 5, 1991 (56
    1604(a).                                                   Fed. Reg. 64467).

    (7) The term “United States assistance” means B            (7) Department of Transportation Order 92-5-38
                                                               of May 20, 1992.
        (A)    any assistance under the Foreign
        Assistance Act of 1961, other than urgent              (8) Federal Aviation Administration action of
        humanitarian assistance or medicine;                   June 19, 1992 (14 C.F.R. Part 91).

        (B) sales and assistance under the Arms            (b)     Prohibition on assistance -- No funds
        Export Control Act;                                appropriated or otherwise made available by law may
                                                           be obligated or expended on behalf of the government
        (C) financing by the Commodity Credit              of Serbia or the government of Montenegro.
        Corporation for export sales of agricultural
        commodities; and                                   (c)    International financial institutions -- The
                                                           Secretary of the Treasury shall instruct the United
        (D)     financing under the Export-Import          States executive director of each international

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financial institution to use the voice and vote of the         Section 1234(a) of the Floyd D. Spence National
United States to oppose any assistance from the                Defense Authorization Act for Fiscal Year 2001,
institution to the government of Serbia or the                 Pub. L. 106-398, 114 Stat. 1654, amended section
government of Montenegro, except for basic human               1211(d) and added subsection (h).
needs.
                                                                Sec. 1211    Export Approvals for High
(d)      Exception -- Notwithstanding any other                         Performance Computers
provision of law, the President is authorized and
encouraged to exempt from sanctions imposed against        (a) Prior Approval of Exports and Reexports. -- The
Serbia and Montenegro that are described in                President shall require that no digital computer with a
subsection (a) those United States-supported               composite theoretical performance level of more than
programs, projects, or activities that involve reform of   2,000 millions of theoretical operations per second
the electoral process, the development of democratic       (MTOPS) or with such other composite theoretical
institutions or democratic political parties, or           performance level as may be established subsequently
humanitarian assistance (including refugee care and        by the President under subsection (d), may be
human rights observation).                                 exported or reexported without a license to a country
(e) Waiver authority --                                    specified in subsection (b) if the Secretary of
                                                           Commerce, the Secretary of Defense, the Secretary of
    (1) The President may waive or modify the              Energy, the Secretary of State or the Director of the
    application, in whole or in part, of any sanction      Arms Control and Disarmament Agency objects, in
    described in subsection (a), the prohibition in        writing, to such export or reexport. Any person
    subsection (b), or the requirement in subsection       proposing to export or reexport such a digital
    (c).                                                   computer shall so notify the Secretary of Commerce,
                                                           who, within 24 hours after receiving the notification,
    (2) Such a waiver or modification may only be          shall transmit the notification to the Secretary of
    effective upon certification by the President to       Defense, the Secretary of Energy, the Secretary of
    Congress that the President has determined that        State, and the Director of the Arms Control and
    the waiver or modification is necessary (A) to         Disarmament Agency.
    meet emergency humanitarian needs, or (B) to
    achieve a negotiated settlement of the conflict in     (b) Covered Countries. -- For purposes of subsection
    Bosnia-Herzegovina that is acceptable to the           (a), the countries specified in this subsection are the
    parties.                                               countries listed as “computer Tier 3” eligible countries
                                                           in section 740.7(d) of title 15 of the Code of Federal
                                                           Regulations, as in effect on June 10, 1997, subject to
Part III.11. EXPORT CONTROLS ON HIGH                       modification by the President under subsection (e).
PERFORMANCE COMPUTERS
                                                           (c) Time Limit. -- Written objections under
    Note: Title XII, Subtitle B (sections 1211 - 1215)     subsection (a) to an export or reexport shall be raised
    of the National Defense Authorization Act for FY       within 10 days after the notification is received under
    1998, Pub. L. 105-85, November 18, 1997, 111           subsection (a). If such a written objection to the
    Stat. 1932, set forth requirements for certain         export or reexport of a computer is raised, the
    notifications,    reports    and     post-shipment     computer may be exported or reexported only
    verifications of exports of high performance           pursuant to a license issued by the Secretary of
    computers. These provisions are codified as a          Commerce under the Export Administration
    note to 50 U.S.C. app. 2404 (section 5 of the          Regulations of the Department of Commerce, without
    Export Administration Act). Section 1524 of the        regard to the licensing exceptions otherwise
    National Defense Authorization Act for FY 1999,        authorized under section 740.7 of title 15 of the Code
    Pub. L. 105-261, October 17, 1998, 112 Stat.           of Federal Regulations, as in effect on June 10. 1997.
    2180, added subsection 1211(g).             Section    If no objection is raised within the 10-day period, the
    1407(c) of the National Defense Authorization          export or reexport is authorized.
    Act for FY 2000, Pub. L. 106-65, October 5, 1999,
    113 Stat. 801, added subsection 1213(e).               (d) Adjustment of Composite Theoretical Perfor-

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mance. -- The President, in consultation with the                   (2) Deletions from List of Covered Countries. --
Secretary of Commerce, the Secretary of Defense, the                The removal of a country from the list of covered
Secretary of Energy, the Secretary of State, and the                countries under subsection (b) shall not take
Director of the Arms Control and Disarmament                        effect until 120 days after the President submits to
Agency, may establish a new composite theoretical                   the congressional committees designated in
performance level for purposes of subsection (a).                   section 1215 a report setting forth the justification
Such new level shall not take effect until 60 days18                for the deletion.
after the President submits to the congressional
committees designated in section 1215 a report setting              (3) Excluded Countries. -- A country may not be
forth the new composite theoretical performance level               removed from the list of covered countries under
and the justification for such new level. Each report               subsection (b) if -
shall, at a minimum --
                                                                         (A) the country is a “nuclear-weapon state”
     (1)     address the extent to which high                            (as defined by Article IX of the Treaty on the
     performance computers of a composite                                Non-Proliferation of Nuclear Weapons) and
     theoretical level between the level established in                  the country is not a member of the North
     subsection (a) or such level as has been                            Atlantic Treaty Organization; or
     previously adjusted pursuant to this section and
     the new level, are available from other countries;                  (B) the country is not a signatory of the
                                                                         Treaty on the Non-Proliferation of Nuclear
     (2)    address all potential uses of military                       Weapons and the country is listed on Annex
     significance to which high performance                              2 to the Comprehensive Nuclear Test-Ban
     computers at the new level could be applied; and                    Treaty.

     (3) assess the impact of such uses on the national         (f) Classification. -- Each report under subsections
     security interests of the United States.                   (d) and (e) shall be submitted in an unclassified form
                                                                and may, if necessary, have a classified supplement.
(e) Adjustment of Covered Countries. --
                                                                (g) Delegation of Objection Authority Within the
     (1) In General. -- The President, in consultation          Department of Defense. -- For the purposes of the
     with the Secretary of Commerce, the Secretary of           Department of Defense, the authority to issue an
     Defense, the Secretary of Energy, the Secretary of         objection referred to in subsection (a) shall be
     State, and the Director of the Arms Control and            executed for the Secretary of Defense by an official at
     Disarmament Agency, may add a country to or                the Assistant Secretary level within the office of the
     remove a country from the list of covered                  Under Secretary of Defense for Policy.               In
     countries in subsection (b), except that a country         implementing subsection (a), the Secretary of Defense
     may be removed from the list only in accordance            shall ensure that Department of Defense procedures
     with paragraph (2).                                        maximize the ability of the Department of Defense to
                                                                be able to issue an objection within the 10-day period
                                                                specified in subsection (c).

                  18                                            (h) Calculation of 60-day period. B The 60-day period
                       Section 1234(a) of Pub. L. 106-398
amended the effective date for any new composite                referred to in subsection (d) shall be calculated by
theoretical performance level from 180 to 60 days after the     excluding the days on which either House of Congress
President submits his report and set forth a provision for      is not in session because of an adjournment of the
calculating the 60-day period in section 1211(h). Section       Congress sine die.
1234(b) of Pub. L. 106-398 states that the 60-day period will
apply to any new composite theoretical performance level        Sec. 1212      Report on Exports of High
established for purposes of section 1211(a) of the National     Performance Computers
Defense Authorization Act for Fiscal Year 1998 (Pub. L.
105-85, 111 Stat. 1629) that is submitted by the President on
or after October 30, 2000.                                      (a) Report.-- Not later than 60 days after the date of
                                                                the enactment of this Act, the President shall provide

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to the congressional committees specified in section        the enactment of this Act, to a country specified in
1215 a report identifying all exports of digital            subsection (b).
computers with a composite theoretical performance
of more than 2,000 millions of theoretical operations       (b) Covered Countries. -- For purposes of subsection
per second (MTOPS) to all countries since January 25,       (a), the countries specified in this subsection are the
1996. For each export, the report shall identify --         countries listed as “Computer Tier 3” eligible
                                                            countries in section 740.7 of title 15, of the Code of
    (1) whether an export license was applied for           Federal Regulations, as in effect on June 10, 1997,
    and whether one was granted;                            subject to modification by the President under section
                                                            1211(e).
    (2) the date of the transfer of the computer;
                                                            (c) Annual Report. -- The Secretary of Commerce
    (3) the United States manufacturer and exporter         shall submit to the congressional committees specified
    of the computer;                                        in section 1215 an annual report on the results of
                                                            post-shipment verifications conducted under this
    (4) the MTOPS level of the computer; and                section during the preceding year. Each such report
                                                            shall include a list of all such items exported from the
    (5) the recipient country and end user.                 United States to such countries during the previous
                                                            year and, with respect to each such export, the
(b) Additional Information on Exports to Certain            following:
Countries. -- In the case of exports to countries
specified in subsection (c), the report under subsection        (1) The destination country.
(a) shall identify the intended end use of the exported
computer and the assessment by the executive branch             (2) The date of export.
of whether the end user is a military end user or an end
user involved in activities relating to nuclear,                (3) The intended end use and intended end user.
chemical, or biological weapons or missile
technology.       Information provided under this               (4) The results of the post-shipment verification.
subsection may be submitted in classified form if
necessary.                                                  (d) Explanation When Verification Not Conducted.
                                                            -- If a post-shipment verification has not been
(c) Covered Countries.-- For purposes of subsection         conducted in accordance with subsection (a) with
(b), the countries specified in this subsection are B       respect to any such export during the period covered
                                                            by a report, the Secretary shall include in the report for
    (1) the countries listed as “Computer Tier 3”           that period a detailed explanation of the reasons why
    eligible countries in section 740.7(d) of title 15 of   such a post-shipment verification was not conducted.
    the Code of Federal Regulations, as in effect on
    June 10, 1997; and                                      (e)     Adjustment of Performance Levels. --
                                                            Whenever a new composite theoretical performance
    (2) the countries listed in section 740.7(e) of title   level is established under section 1211(d), that level
    15 of the Code of Federal Regulations, as in effect     shall apply for purposes of subsection (a) of this
    on June 10, 1997.                                       section in lieu of the level set forth in subsection (a).

Sec. 1213 Post-Shipment Verification of High                Sec. 1214 GAO Study on Certain Computers; End
Performance Computers                                       user Information Assistance

(a) Required Post-shipment Verification. -- The             (a) In General. -- The Comptroller General of the
Secretary of Commerce shall conduct post-shipment           United States shall submit to the congressional
verification of each digital computer with a composite      committees specified in section 1215 a study of the
theoretical performance of more than 2,000 millions         national security risks relating to the sale of computers
of theoretical operations per second (MTOPS) that is        with a composite theoretical performance of between
exported from the United States, on or after the date of    2,000 and 7,000 millions of theoretical operations per

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second (MTOPS) to end users in countries specified in      It is the sense of Congress that --
subsection (c). The study shall also analyze any
foreign availability of computers described in the         (1) United States business interests must not be
preceding sentence and the impact of such sales on         placed above United States national security interests;
United States exporters.
                                                           (2) United States foreign policy and the policies of
(b) End User Information Assistance to Exports. --         the United States regarding commercial relations with
The Secretary of Commerce shall establish a                other countries should affirm the importance of
procedure by which exporters may seek information          observing and adhering to the Missile Technology
on questionable end users in countries specified in        Control Regime (MTCR);
subsection (c) who are seeking to obtain computers
described in subsection (a).                               (3) the United States should encourage universal
                                                           observance of the Guidelines to the Missile
(c) Covered Countries. -- For purposes of subsections      Technology Control Regime;
(a) and (b), the countries specified in this subsection
are the countries listed as “Computer Tier 3” eligible     (4) the exportation or transfer of advanced
countries in section 740.7(d) of title 15 of the Code of   communication satellites and related technologies
federal Regulations, as in effect on June 10, 1997.        from United States sources to foreign recipients
                                                           should not increase the risks to the national security of
      Sec. 1215 Congressional Committees                   the United States;

 For purposes of sections 1211(d), 1212(a), 1213(c),       (5) due to the military sensitivity of the technologies
and 1214(a) the congressional committees specified in      involved, it is in the national security interests of the
those sections are the following:                          United States that United States satellites and related
                                                           items be subject to the same export controls that apply
    (1) The Committee on Banking, Housing, and             under United States law and practices to munitions;
    Urban Affairs and the Committee on Armed
    Services of the Senate.                                (6) the United States should not issue any blanket
                                                           waiver of the suspensions contained in section 902 of
    (2) The Committee on International Relations           the Foreign Relations Authorization Act, Fiscal Years
    and the Committee on National Security of the          1990 and 1991 (Public Law 101-246), regarding the
    House of Representatives.                              export of satellites of United States origin intended for
                                                           launch from a launch vehicle owned by the People’s
                                                           Republic of China;
Part III.12. SATELLITE EXPORT
CONTROLS                                                   (7) the United States should pursue policies that
                                                           protect and enhance the United States space launch
    Note: Title XV, Subtitle B (sections 1511 - 1516)      industry; and
    of the National Defense Authorization Act for
    Fiscal Year 1999, Pub. L. 105-261, October 17,         (8) the United States should not export to the
    1998, provides for the transfer of all satellites      People’s Republic of China missile equipment or
    and related items on the Commerce Control List         technology that would improve the missile or space
    in the Export Administration Regulations to the        launch capabilities of the People’s Republic of China.
    United States Munitions List.            Provisions
    relevant to Bureau of Industry and Security                               **********
    activities are set forth below. Secs. 1513 and 1516
    repealed by National Defense Authorization Act               Sec. 1512 Certification of Exports of
    for Fiscal Year 2013, 126 Stat. 1632.                      Missile Equipment or Technology to China

                                                           The President shall certify to the Congress at least 15
           Sec. 1511    Sense of Congress                  days in advance of any export to the People’s Republic
                                                           of China of missile equipment or technology (as

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defined in section 74 of the Arms Export Control Act           Organizations19
(22 U.S.C. 2797c)) that:
                                                                    (a) Designation. -- (1) In General. -- The
(1) such export is not detrimental to the United States             Secretary [of State] is authorized to designate
space launch industry; and                                          an organization as a foreign terrorist
                                                                    organization in accordance with this
(2) the missile equipment or technology, including an               subsection if the Secretary finds that --
indirect technical benefit that could be derived from
such export, will not measurable improve the missile                          (A)    the organization is a foreign
or space launch capabilities of the People’s Republic      organization;
of China.
                                                                              (B) the organization engages in
                                                           terrorist activity (as defined in section 212(a)(3)(B))
Part III.13. ANTITERRORISM AND EFFEC-                      or terrorism (as defined in section 140(d)(2) of the
TIVE DEATH PENALTY ACT OF 1996                             Foreign Relations Authorization Act, Fiscal Years
                                                           1988 and 1989 (22 U.S.C. 2656f(d)(2)), or retains the
    Note: Sections 301 - 303 of the Anti-Terrorism         capability and intent to engage in terrorist activity or
    and Effective Death Penalty Act (Anti-Terrorism        terrorism; and
    Act) (Pub. L. 104-132, 110 Stat. 1214-1319)
    amended the Immigration and Nationality Act                               (C)     the terrorist activity of the
    and Title 18 to direct the Secretary of State to                          organization threatens the security
    designate foreign terrorist organizations and to                          of United States nationals or the
    prohibit the provision of material support or                             national security of the United
    resources to such designated foreign terrorist                            States.
    organizations. Section 321, relating to financial
    transactions with terrorists, amends title 18 of the                 (2) Procedure. --
    United States Code.
                                                                              (A)   Notice.

          Sec. 301 Findings and Purpose                                        (i) To congressional leaders.
                                                           Seven days before making a designation under this
(a) Findings. --                                           subsection, the Secretary shall, by classified
                   **********                              communication, notify the Speaker and Minority
                                                           Leader of the House of Representatives, the President
(b) Purpose. -- The purpose of this subtitle is to         pro tempore, Majority Leader, and Minority Leader of
provide the Federal Government the fullest possible        the Senate, and the members of the relevant
basis, consistent with the Constitution, to prevent        committees of the House of Representatives and the
persons within the United States, or subject to the        Senate, in writing, of the intent to designate a foreign
jurisdiction of the United States, from providing          organization under this subsection, together with the
material support or resources to foreign organizations     findings made under paragraph (1) with respect to that
that engage in terrorist activities.                       organization, and the factual basis therefor.

                                                                                       (ii) Publication in the
     Sec. 302 Designation of Foreign Terrorist             Federal Register. The Secretary shall publish the
                   Organizations                           designation in the Federal Register seven days after
                                                           providing the notification under clause (i).
(a) In General . -- Chapter 2 of title II of the
Immigration and Nationality Act (8 U.S.C. 1181 et                             (B)     Effect of Designation. --
seq.) Is amended by adding at the end the following:
                                                                    19
                                                                       Section 411(c) of Pub. L. 107-56, 115 Stat.
    Sec. 219.      Designation of Foreign Terrorist        349, amended (a)(1)(B) and (a)(2)(A).


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                                                               Relations Authorization Act, Fiscal Years 1988
                          (i) For purposes of section          and 1989).
2339B of title 18, United States Code, a designation
under this     subsection shall take effect upon                              **********
publication under subparagraph (A)(ii).
                                                               (c) Injunction. -- Whenever it appears to the
                            (ii) Any designation under         Secretary of the Attorney General that any person
this subsection shall cease to have effect upon an Act         is engaged in, or is about to engage in, any act that
of Congress disapproving such designation.                     constitutes, or would constitute, a violation of this
                                                               section, the Attorney General may initiate civil
                   (C) Freezing of Assets. -- Upon             action in a district court of the United States to
notification under paragraph (2)(A)(i), the Secretary          enjoin such violation.
of the Treasury may require United States financial
institutions possessing or controlling any assets of any       (d) Extraterritorial Jurisdiction.
foreign organization included in the notification to
block all financial transactions involving those assets             (1) * * * * *
until further directive form either the Secretary of the
Treasury, Act of Congress, or order of court.                       (2) Extraterritorial jurisdiction. There is
                                                                    extraterritorial Federal jurisdiction over an
                   **********                                       offense under this section.

  Sec. 303 Prohibition on Terrorist Fundraising                               **********

(a) In General. -- Chapter 113B of title 18, United         Sec. 321 Financial Transactions with Terrorists
States Code, is amended by adding at the end the
following new section:                                     (a) In General.--Chapter 113B of title 18, United
                                                           States Code, relating to terrorism, is amended by
    Sec. 2339B. Providing material support or              inserting after the section 2332c added by section 521
    resources to designated foreign terrorist              of this Act the following new section:
    organizations20
                                                               Sec. 2332d. Financial transactions21
    (a) Prohibited Activities -- (1) Unlawful Conduct.         (a) Offense.--Except as provided in regulations
    -- Whoever knowingly provides material support             issued by the Secretary of the Treasury, in
    or resources to a foreign terrorist organization, or       consultation with the Secretary of State, whoever,
    attempts or conspires to do so, shall be fined             being a United States person, knowing or having
    under this title or imprisoned not more than 15            reasonable cause to know that a country is
    years, or both, and, if the death of any person            designated under section 6(j) of the Export
    results, shall be imprisoned for any term of years         Administration Act of 1979 (50 U.S.C. App.
    or for life. To violate this paragraph, a person           2405) as a country supporting international
    must have knowledge that the organization is a             terrorism, engages in a financial transaction with
    designated terrorist organization (as defined in           the government of that country, shall be fined
    subsection (g)(6)), that the organization has              under this title, imprisoned for not more than 10
    engaged or engages in terrorist activity (as               years, or both.
    defined in section 212(a)(3)(B) of the                     (b) Definitions.--As used in this section--
    Immigration and Nationality Act), or that the                   (1) the term “financial transaction” has the
    organization has engaged or engages in terrorism       same meaning as in section 1956(c)(4); and
    (as defined in section 140(d)(2) of the Foreign                 (2) the term “United States person” means
                                                           any--
         20
            Section 810(d) of Pub. L. 107-56, 115 Stat.
                                                                    21
380, amended (a)(1), and section 6603(c)-(f) of Pub. L.                 Section 4002(a)(5) of Pub. L. 107-273, 116
108-458, 118 Stat. 3762, amended (a)(1) and (d).           Stat 1806, amended (a).


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             (A) United States citizen or national;
             (B) permanent resident alien;                    (1) The United States should seek to maintain and
             (C) juridical person organized under the         expand economic and trade relations with Hong
                  laws of the United States; or               Kong and should continue to treat Hong Kong as
             (D) any person in the United States.             a separate territory in economic and trade matters,
                                                              such as import quotas and certificates of origin.
(b) Clerical Amendment.--The table of sections at                            **********
the beginning of chapter 113B of title 18, United             (3) The United States should continue to treat
States Code, relating to terrorism, is amended by             Hong Kong as a territory which is fully
inserting after the item added by section 521 of this         autonomous from the United Kingdom and, after
Act the following new item:                                   June 30, 1997, should treat Hong Kong as a
                                                              territory which is fully autonomous from the
    2332d. Financial transactions.                            People’s Republic of China with respect to
                                                              economic and trade matters.
(c) Effective Date.--The amendments made by this
section shall become effective 120 days after the date                       **********
of enactment of this Act.                                     (8) The United States should continue to support
                                                              access by Hong Kong to sensitive technology
                                                              controlled under the agreement of the
Part III.14. COMMERCE BETWEEN THE                             Coordinating Committee for Multilateral Export
UNITED STATES AND HONG KONG AND                               Controls (commonly referred to as “COCOM”)
CONTINUED APPLICATION OF UNITED                               for so long as the United States is satisfied that
STATES LAW                                                    such technologies are protected from improper
                                                              use or export.
Note: The United States-Hong Kong Policy Act of                              **********
1992 set forth the Congress’ findings that the 1984
Sino-British Joint Declaration, which provided for the     Section 201 --Continued Application of United
establishment of the Hong Kong Special                                      States law
Administrative Region of the People’s Republic of
China on July 1, 1997, also provided for                  (a) In general -- Notwithstanding any change in the
implementation of a “one country, two systems”            exercise of sovereignty over Hong Kong, the laws of
policy, under which Hong Kong will retain its current     the United States shall continue to apply with respect
lifestyle and legal, social and economic systems until    to Hong Kong, on and after July 1, 1997, in the same
at least the year 2047. Section 103 of the Act, set       manner as the laws of the United States were applied
forth in part below, is Congress’ statement of U.S.       with respect to Hong Kong before such date unless
policy on commerce between the United States and          otherwise expressly provided by law or by Executive
Hong Kong following the resumption of the exercise of     order under section 204 of this title.
Chinese sovereignty over Hong Kong on July 1, 1997.
Sections 201 and 202 of the Act, also set forth in part                     **********
below,      provided for the general continued
application of United States law to Hong Kong as long              Section 202 -- Presidential order
as Hong Kong remains autonomous.
                                                            (a) Presidential order -- On or after July 1, 1997,
 Sec. 103 -- Commerce Between the United States           whenever the President determines that Hong Kong is
                and Hong Kong                             not sufficiently autonomous to justify treatment under
                                                          a particular law of the United States, or any provision
It is the sense of the Congress that the following,       thereof, different from that accorded to the People’s
which are based in part on the relevant provisions of     Republic of China, the President may issue an
the Joint Declaration, are and should continue after      Executive order suspending the application of section
June 30, 1997, to be the policy of the United States      201(a) of this title to such law or provision of law.
with respect to commerce between the United States
and Hong Kong:

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Part III.15. INTERNATIONAL RELIGIOUS
FREEDOM ACT OF 1998                                       (a) Description of Presidential actions

    Note: Section 423 of the International Religious                        **********
    Freedom Act of 1998, Pub. L. 105-292, October
    27, 1998, 112 Stat. 2787, codified at 22 U.S.C.            (13) Ordering the heads of the appropriate United
    6401 et seq., as amended by Pub. L. 106-55,                States agencies not to issue any (or a specified
    August 17, 1999, 113 Stat. 401, permits the                number of) specific licenses, and not to grant any
    Secretary of Commerce to include on the                    other specific authority (or a specified number of
    Commerce Control List items being exported or              authorities), to export any goods or technology to
    reexported to countries of concern for religious           the specific foreign government, agency,
    freedom pursuant to section 6(n) of the Export             instrumentality, or official found or determined
    Administration Act.                                        by the President to be responsible for violations
                                                               under section 401 or 402, under--
Sec. 401. Presidential Actions in Response to               (A) the Export Administration Act of 1979; (B)
                                                               the Arms Export Control Act; (C) the Atomic
Violations of Religious Freedom                                Energy Act of 1954; or (D) any other statute
(a) Response to violations of religious freedom.               that requires the prior
(1) In general                                            review and approval of the United States Government
     (A) United States policy                             as a condition for the export or reexport of goods or
                                                          services.
It shall be the policy of the United States-- (i) to                           *********
     oppose violations of religious freedom that are or
     have been engaged in or tolerated by the             Sec. 423. Exports of Certain Items Used in
     governments of foreign countries; and (ii) to        Particularly Severe Violations of Religious
     promote the right to freedom of religion in those    Freedom
     countries through the actions described in
     subsection (b).                                      (a) Mandatory Licensing
                         **********                       Notwithstanding any other provision of law, the
Sec. 402. Presidential Actions in Response to             Secretary of Commerce, with the concurrence of the
Particularly Severe Violations of Religious Free-         Secretary of State, shall include on the list of crime
dom                                                       control and detection instruments or equipment
                                                          controlled for export and reexport under section 6(n)
(a) Response to Particularly Severe Violations of         of the Export Administration Act of 1979 (50 U.S.C.
Religious Freedom.                                        App. 2405(n)), or under any other provision of law,
                                                          items being exported or reexported to countries of
  (1) United States policy.                               particular concern for religious freedom that the
                                                          Secretary of Commerce, with the concurrence of the
It shall be the policy of the United States--             Secretary of State, and in consultation with
          (A) to oppose particularly severe violations    appropriate officials including the Assistant Secretary
     of religious freedom that are or have been           of State for Democracy, Human Rights and Labor and
     engaged in or tolerated by the governments of        the Ambassador at Large, determines are being used
     foreign countries; and                               or are intended for use directly and in significant
                                                          measure to carry out particularly severe violations of
         (B) to promote the right to freedom of           religious freedom. (b) Licensing Ban.--The
    religion in those countries through the actions       prohibition on the issuance of a license for export of
    described in subsection (c).                          crime control and detection instruments or equipment
                                                          under section 502B(a)(2) of the Foreign Assistance
                  **********                              Act of 1961(22 U.S.C. 2304(a)(2)) shall apply to the
                                                          export and reexport of any item included pursuant to
  Sec. 405. Descriptions of Presidential Actions          subsection (a) on the list of crime control instruments.

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                                                               (A) the Nuclear Suppliers Group Guidelines for
                  **********                               the Export of Nuclear Material, Equipment and Tech-
                                                           nology (published by the International Atomic Energy
                                                           Agency         as         Information        Circular
Part III.16. IRAN, NORTH KOREA, AND                        INFCIRC/254/Rev.3/Part        1,   and    subsequent
SYRIA NONPROLIFERATION ACT                                 revisions) and Guidelines for Transfers of
                                                           Nuclear-Related Dual-Use Equipment, Material, and
    Note: Originally the Iran Nonproliferation Act of      Related Technology (published by the International
    2000, Pub. L. 106-178, March 14, 2000, 114 Stat.       Atomic Energy Agency as Information Circular
    38, codified as a note to 50 U.S.C. 1701, the Act      INFCIRC/254/Rev.3/Part        2,   and    subsequent
    provided for the application of sanctions against      revisions);
    certain foreign persons, as identified by the
    President, involved in proliferation activities with        (B) the Missile Technology Control Regime
    respect to Iran as set forth in his report. Section    Equipment and Technology Annex of June 11, 1996,
    1306 of Pub. L. 107-228 (116 Stat. 1438)               and subsequent revisions;
    amended section 5(a)(2). Sections 3 and 4 of
    Pub. L. 109-112 (119 Stat. 2368) amended the                (C) the lists of items and substances relating to
    title of the Act and applied the sanctions             biological and chemical weapons the export of which
    contained in the Act to Syria as well as Iran.         is controlled by the Australia Group;
    Section 3 of Pub. L. 109-353 (120 Stat. 2015)
    further amended the title of the Act and applied           (D) the Schedule One or Schedule Two list of
    the sanctions to North Korea in addition to Iran       toxic chemicals and precursors the export of which is
    and Syria.      Sections relating to reporting         controlled pursuant to the Convention on the
    requirements, restrictions on extraordinary            Prohibition of the Development, Production,
    payments in connection with the International          Stockpiling and Use of Chemical Weapons and on
    Space Station, and the definition relating to the      Their Destruction; or
    Russian Aviation and Space Agency have been
    omitted.                                                 (E) the Wassenaar Arrangement list of Dual Use
                                                           Goods and Technologies and Munitions list of July 12,
                                                           1996, and subsequent revisions; or
Section 1. Short title
                                                              (2) goods, services, or technology not listed on any
This Act may be cited as the “Iran, North Korea, and       list identified in paragraph (1) but which nevertheless
Syria Nonproliferation Act.”                               would be, if they were United States goods, services,
                                                           or technology, prohibited for export to Iran, North
Sec. 2. Reports on proliferation relating to Iran,         Korea, or Syria because of their potential to make a
North Korea, and Syria.                                    material contribution to the development of nuclear,
                                                           biological, or chemical weapons, or of ballistic or
(a) Reports. The President shall, at the times specified   cruise missile systems.
in subsection (b), submit to the Committee on
International Relations of the House of                                      **********
Representatives and the Committee on Foreign               Sec. 3. Application of measures to certain
Relations of the Senate a report identifying every          foreign persons
foreign person with respect to whom there is credible
information indicating that that person, on or after       (a) Application of measures. Subject to sections 4
January 1, 1999, transferred to or acquired from Iran,     and 5, the President is authorized to apply with respect
on or after January 1, 2005, transferred to or acquired    to each foreign person identified in a report submitted
from Syria, or on or after January 1, 2006, transferred    pursuant to section 2(a), for such period of time as he
to or acquired from North Korea--                          may determine, any or all of the measures described in
                                                           subsection (b).
  (1) goods, services, or technology listed on--
                                                           (b) Description of measures. The measures referred

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to in subsection (a) are the following:                     effective date under section 3(c) for measures with
                                                            respect to that person.
  (1) Executive Order No. 12938 prohibitions. The
measures set forth in subsections (b) and (c) of section    (b) Written justification. Any notification submitted
4 of Executive Order No. 12938 [note to this section].      by the President under subsection (a) shall include a
                                                            written justification describing in detail the facts and
  (2) Arms export prohibition. Prohibition on Unit-         circumstances relating specifically to the foreign
ed States Government sales to that foreign person of        person identified in a report submitted pursuant to
any item on the United States Munitions List as in          section 2(a) that support the President's decision not to
effect on August 8, 1995, and termination of sales to       exercise the authority of section 3(a) with respect to
that person of any defense articles, defense services, or   that person.
design and construction services under the Arms
Export Control Act (22 U.S.C. 2751 et seq.).                (c) Submission in classified form. When the
                                                            President considers it appropriate, the notification of
  (3) Dual use export prohibition. Denial of licenses       the President under subsection (a), and the written
and suspension of existing licenses for the transfer to     justification under subsection (b), or appropriate parts
that person of items the export of which is controlled      thereof, may be submitted in classified form.
under the Export Administration Act of 1979 or the
Export Administration Regulations.                          Sec. 5. Determination exempting foreign person
                                                            from sections 3 and 4
(c) Effective date of measures. Measures applied
pursuant to subsection (a) shall be effective with          (a) In general. Sections 3 and 4 shall not apply to a
respect to a foreign person no later than--                 foreign person 15 days after the President reports to
                                                            the Committee on International Relations of the House
  (1) 90 days after the report identifying the foreign      of Representatives and the Committee on Foreign
person is submitted, if the report is submitted on or       Relations of the Senate that the President has
before the date required by section 2(b);                   determined, on the basis of information provided by
                                                            that person, or otherwise obtained by the President,
  (2) 90 days after the date required by section 2(b) for   that--
submitting the report, if the report identifying the
foreign person is submitted within 60 days after that         (1) the person did not, on or after January 1, 1999,
date; or                                                    knowingly transfer to or acquire from Iran, North
                                                            Korea, or Syria, as the case may be, the goods,
  (3) on the date that the report identifying the foreign   services, or technology the apparent transfer of which
person is submitted, if that report is submitted more       caused that person to be identified in a report
than 60 days after the date required by section 2(b).       submitted pursuant to section 2(a);

(d) Publication in Federal Register. The application          (2) the goods, services, or technology the transfer of
of measures to a foreign person pursuant to subsection      which caused that person to be identified in a report
(a) shall be announced by notice published in the           submitted pursuant to section 2(a) did not materially
Federal Register.                                           contribute to the efforts of Iran, North Korea, or Syria,
                                                            as the case may be, to develop nuclear, biological, or
Sec. 4. Procedures if measures are not applied              chemical weapons, or ballistic or cruise missile
                                                            systems, or weapons listed on the Wassenaar
(a) Requirement to notify Congress. Should the              Arrangement Munitions List of July 12, 1996, or any
President not exercise the authority of section 3(a) to     subsequent revision of that list;
apply any or all of the measures described in section
3(b) with respect to a foreign person identified in a         (3) the person is subject to the primary jurisdiction
report submitted pursuant to section 2(a), he shall so      of a government that is an adherent to one or more
notify the Committee on International Relations of the      relevant nonproliferation regimes, the person was
House of Representatives and the Committee on               identified in a report submitted pursuant to section
Foreign Relations of the Senate no later than the           2(a) with respect to a transfer of goods, services, or

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technology described in section 2(a)(1), and such               (B) a corporation, business association,
transfer was made consistent with the guidelines and       partnership, society, trust, or any other
parameters of all such relevant regimes of which such      nongovernmental entity, organization, or group, that is
government is an adherent; or                              organized under the laws of a foreign country or has
                                                           its principal place of business in a foreign country;
  (4) the government with primary jurisdiction over
the person has imposed meaningful penalties on that            (C) any foreign government, including a foreign
person on account of the transfer of the goods,            governmental entity; and
services, or technology which caused that person to be
identified in a report submitted pursuant to section            (D) any successor, subunit, or subsidiary of any
2(a).                                                      entity described in subparagraph (A), (B), or (C),
                                                           including any entity in which any entity described in
(b) Opportunity to provide information. Congress           any such subparagraph owns a controlling interest.
urges the President--
                                                             (3) Executive Order No. 12938. The term
  (1) in every appropriate case, to contact in a timely    “Executive Order No. 12938” means Executive Order
fashion each foreign person identified in each report      No. 12938 [note to this section] as in effect on January
submitted pursuant to section 2(a), or the government      1, 1999.
with primary jurisdiction over such person, in order to
afford such person, or governments, the opportunity to       (4) Adherent to relevant nonproliferation
provide explanatory, exculpatory, or other additional      regime. A government is an “adherent” to a “relevant
information with respect to the transfer that caused       nonproliferation regime” if that government--
such person to be identified in a report submitted
pursuant to section 2(a); and                                  (A) is a member of the Nuclear Suppliers Group
                                                           with respect to a transfer of goods, services, or
  (2) to exercise the authority in subsection (a) in all   technology described in section 2(a)(1)(A);
cases where information obtained from a foreign
person identified in a report submitted pursuant to             (B) is a member of the Missile Technology Con-
section 2(a), or from the government with primary          trol Regime with respect to a transfer of goods,
jurisdiction over such person, establishes that the        services, or technology described in section
exercise of such authority is warranted.                   2(a)(1)(B), or is a party to a binding international
                                                           agreement with the United States that was in effect on
(c) Submission in classified form. When the                January 1, 1999, to control the transfer of such goods,
President considers it appropriate, the determination      services, or technology in accordance with the criteria
and report of the President under subsection (a), or       and standards set forth in the Missile Technology
appropriate parts thereof, may be submitted in             Control Regime;
classified form.
                                                               (C) is a member of the Australia Group with
                   **********                              respect to a transfer of goods, services, or technology
                                                           described in section 2(a)(1)(C);
Sec. 7. Definitions
                                                                (D) is a party to the Convention on the Prohibition
 For purposes of this Act, the following terms have the    of the Development, Production, Stockpiling and Use
following meanings:                                        of Chemical Weapons and on Their Destruction with
                                                           respect to a transfer of goods, services, or technology
                   **********                              described in section 2(a)(1)(D); or

  (2) Foreign person; person. The terms “foreign               (E) is a member of the Wassenaar Arrangement
person” and “person” mean--                                with respect to a transfer of goods, services, or
                                                           technology described in section 2(a)(1)(E).
    (A) a natural person that is an alien;
                                                                             **********

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Part III.17. TRADE SANCTIONS REFORM                         (B) any program administered under section 1431 of
AND EXPORT ENHANCEMENT ACT OF 2000                        Title 7;

    Note: Sections 902-910 of the Trade Sanctions           (C) any program administered under the
    Reform and Export Enhancement Act of 2000             Agricultural Trade Act of 1978 (7 U.S.C. 5601 et
    (TSRA), Pub. L. 106-387, October 28, 2000, 114        seq.);
    Stat. 1549, codified at 22 U.S.C. 7201-7209
    provides for the termination of existing unilateral     (D) the dairy export incentive program administered
    agricultural and medical sanctions and also           under section 713a-14 of Title 15;
    provides that the export of agricultural
    commodities, medicines, and medical devices to          (E) any commercial export sale of agricultural
    designated terrorist countries be made in             commodities; or
    accordance with the licensing regime in that Act.
    Sections 907-910 relating to reporting                  (F) any export financing (including credits or credit
    requirements,       congressional      procedures,    guarantees) provided by the United States
    financial assistance, travel, and imports have        Government for agricultural commodities.
    been omitted. Section 775 of TSRA is codified as
    a note to 22 U.S.C. 7201. TSRA was amended by                        **********
    section 221 of the Uniting and Strengthening
    America by Providing Appropriate Tools                (4) Medical device. B The term “medical device” has
    Required to Intercept and Obstruct Terrorism Act      the meaning given the term “device” in section 321 of
    of 2001 (USA PATRIOT ACT), Pub. L. No.                Title 21.
    107-56, October 26, 2001, 115 Stat. 272.
    Section 221(a) of the USA PATRIOT ACT                 (5) Medicine. B The term “medicine” has the meaning
    amended 904(2)(C), 906(a)(1) and 906(a)(2).           given the term “drug” in section 321of Title 21.
    Section 221(b) of the USA PATRIOT ACT,”
    Application of the Trade Sanctions Reform and         (6) Unilateral agricultural sanction. B The term
    Export Enhancement Act,” is codified at 22            “unilateral agricultural sanction” means any
    U.S.C. 7210 and is set forth in part III.22.          prohibition, restriction, or condition on carrying out an
                                                          agricultural program with respect to a foreign country
Sec. 775.                                                 or foreign entity that is imposed by the United States
                                                          for reasons of foreign policy or national security,
For purposes of administering Title IX of this Act, the   except in a case in which the United States imposes
term “agricultural commodity” shall also include          the measure pursuant to--
fertilizer and organic fertilizer, except to the extent
provided pursuant to Section 904 of that title.             (A) a multilateral regime and the other member
                                                          countries of that regime have agreed to impose
Sec. 902. Definitions                                     substantially equivalent measures; or

In this chapter:                                            (B) a mandatory decision of the United Nations
                                                          Security Council.
(1)    Agricultural     commodity.B    The    term
“agricultural commodity” has the meaning given the        (7) Unilateral medical sanction. B The term
term in section 5602 of Title 7.                          “unilateral medical sanction” means any prohibition,
                                                          restriction, or condition on exports of, or the provision
(2) Agricultural program. B The term “agricultural        of assistance consisting of, medicine or a medical
program” means--                                          device with respect to a foreign country or foreign
                                                          entity that is imposed by the United States for reasons
  (A) any program administered under the                  of foreign policy or national security, except in a case
Agricultural Trade Development and Assistance Act         in which the United States imposes the measure
of 1954 (7 U.S.C. 1691 et seq.);                          pursuant to--

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                                                                 States are involved in hostilities; or
  (A) a multilateral regime and the other member
countries of that regime have agreed to impose                    (D) where imminent involvement by the Armed
substantially equivalent measures; or                        Forces of the United States in hostilities against the
                                                             country or entity is clearly indicated by the
  (B) a mandatory decision of the United Nations             circumstances; or
Security Council.
                                                             (2) to the extent that the sanction would prohibit,
Sec. 903. Restriction                                        restrict, or condition the provision or use of any
                                                             agricultural commodity, medicine, or medical device
(a) New sanctions. B Except as provided in sections          that is--
904 and 905 of this title and notwithstanding any other
provision of law, the President may not impose a               (A) controlled on the United States Munitions List
unilateral agricultural sanction or unilateral medical       established under section 2778 of this title;
sanction against a foreign country or foreign entity,
unless--                                                       (B) controlled on any control list established under
                                                             the Export Administration Act of 1979 or any
(1) not later than 60 days before the sanction is            successor statute (50 U.S.C. App. 2401 et seq.); or
proposed to be imposed, the President submits a report
to Congress that--                                             (C) used to facilitate the design, development, or
                                                             production of a chemical or biological weapons,
  (A) describes the activity proposed to be prohibited,      missiles, or weapon of mass destruction.
restricted, or conditioned; and
                                                             Sec. 905. Termination of sanctions
  (B) describes the actions by the foreign country or        Any unilateral agricultural sanction or unilateral
foreign entity that justify the sanction; and                medical sanction that is imposed pursuant to the
                                                             procedures described in section 903(a) of this title
  (2) there is enacted into law a joint resolution stating   shall terminate not later than 2 years after the date on
the approval of Congress for the report submitted            which the sanction became effective unless--
under paragraph (1).
                                                             (1) not later than 60 days before the date of
(b) Existing sanctions. B The President shall                termination of the sanction, the President submits to
terminate any unilateral agricultural sanction or            Congress a report containing--
unilateral medical sanction that is in effect as of
enacted Oct. 28, 2000.                                         (A) the recommendation of the President for the
                                                             continuation of the sanction for an additional period of
Sec. 904. Exceptions                                         not to exceed 2 years; and

Section 903 of this title shall not affect any authority      (B) the request of the President for approval by
or requirement to impose (or continue to impose) a           Congress of the recommendation; and
sanction referred to in section 903 of this title--
                                                             (2) there is enacted into law a joint resolution stating
(1) against a foreign country or foreign entityB             the approval of Congress for the report submitted
                                                             under paragraph (1).
    (A) pursuant to a declaration of war against the
country or entity;                                           Sec. 906. State sponsors of international terrorism

     (B) pursuant to specific statutory authorization        (a) Requirement.
for the use of the Armed Forces of the United States
against the country or entity;                               (1) In general. Notwithstanding any other provision
                                                             of this chapter (other than section 904 of this title) the
    (C) against which the Armed Forces of the United         export of agricultural commodities, medicine, or

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medical devices to Cuba, the Taliban or the territory of    effectively implemented; and
Afghanistan controlled by the Taliban, or to the
government of a country that has been determined by         (5) a description of comments received from
the Secretary of State to have repeatedly provided          interested parties about the extent to which the
support for acts of international terrorism under           licensing procedures were effective, after the
section 2371 of this title, section 2405(j)(1) of Title     applicable department or agency holds a public 30-day
50, Appendix, or section 2780(d) of this title, or to any   comment period.
other entity in such a country, shall only be made
pursuant to one-year licenses issued by the United           *********
States Government for contracts entered into during
the one-year period of the license and shipped within
the 12-month period beginning on the date of the            Part III.18. DEPARTMENT OF DEFENSE
signing of the contract, except that the requirements of    REVIEW OF EXPORT LICENSES FOR
such one-year licenses shall be no more restrictive         CERTAIN BIOLOGICAL PATHOGENS
than license exceptions administered by the
Department of Commerce or general licenses                      Note: The Department of Defense Review of
administered by the Department of the Treasury,                 Export License for Certain Biological Pathogens,
except that procedures shall be in place to deny                Pub. L. 104-106, February 10, 1996, 110 Stat.
licenses for exports to any entity within such country,         480, codified as a note to 50 U.S.C. App. 2404,
or territory of Afghanistan controlled by the Taliban           provides for the Secretary of Commerce to refer
promoting international terrorism.                              license applications for certain biological
                                                                pathogens to the Department of Defense for
(2) Exception. Paragraph (1) shall not apply with               review.
respect to the export of agricultural commodities,
medicine, or medical devices to the Government of           (a) Department of Defense review. Any application
Syria or to the Government of North Korea, or to any        to the Secretary of Commerce for a license for the
other entity in Syria or North Korea.                       export of a class 2, class 3, or class 4 biological
                                                            pathogen to a country identified to the Secretary under
(b) Quarterly Reports The applicable department or          subsection (c) as a country that is known or suspected
agency of the Federal Government shall submit to the        to have a biological weapons program shall be referred
appropriate congressional committees on a quarterly         to the Secretary of Defense for review. The Secretary
basis a report on any activities undertaken under           of Defense shall notify the Secretary of Commerce
subsection (a)(1) during the preceding calendar             within 15 days after receipt of an application under the
quarter.                                                    preceding sentence whether the export of such
                                                            biological pathogen pursuant to the license would be
(c) Biennial Reports Not later than two years after the     contrary to the national security interests of the United
date of enactment of this Act, and every two years          States.
thereafter, the applicable department or agency of the
Federal Government shall submit a report to the             (b) Denial of license if contrary to national security
appropriate congressional committees on the                 interest. A license described in subsection (a) shall be
operation of the licensing system under this section for    denied by the Secretary of Commerce if it is deter-
the preceding two-year period, including                    mined that the export of such biological pathogen to
                                                            that country would be contrary to the national security
(1) the number and types of licenses applied for;           interests of the United States.

(2) the number and types of licenses approved;              (c) Identification of countries known or suspected
                                                            to have a program to develop offensive biological
(3) the average amount of time elapsed from the date        weapons.
of filing of a license application until the date of its
approval;                                                   (1) The Secretary of Defense shall determine, for the
                                                            purposes of this section, those countries that are
(4) the extent to which the licensing procedures were       known or suspected to have a program to develop

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offensive biological weapons. Upon making such
determination, the Secretary shall provide to the
Secretary of Commerce a list of those countries.
                                                           Part III.20. SYRIA ACCOUNTABILITY AND
(2) The Secretary of Defense shall update the list         LEBANESE SOVEREIGNTY RESTORATION
under paragraph (1) on a regular basis. Whenever a         ACT OF 2003
country is added to or deleted from such list, the
Secretary shall notify the Secretary of Commerce.               Note: Sections 2 - 4 of the Act set forth Congress’
                                                           findings, sense of the Congress, and statement of U.S.
(3) Determination under this subsection of countries       policy regarding Syria and Lebanon. Section 5
that are known or suspected to have a program to           directs the President to take certain export
develop offensive biological weapons shall be made in      control-related measures.        See E.O. 13338 for
consultation with the Secretary of State and the           waivers implemented pursuant to Section 5(b) of the
intelligence community.                                    Act.

(d) Definition. B For purposes of this section, the term   SEC. 5. PENALTIES AND AUTHORIZATION.
“class 2, class 3, or class 4 biological pathogen” means
any biological pathogen that is characterized by the        (a) Penalties.--Until the President makes the
Centers for Disease Control as a class 2, class 3, or      determination that Syria meets all the requirements
class 4 biological pathogen.                               described in paragraphs (1) through (4) of subsection
                                                           (d) and certifies such determination to Congress in
Part III.19. FLEXIBILITY IN EXERCISE OF                    accordance with such subsection--
WAIVER AUTHORITY OF MTCR AND
EXPORT         ADMINISTRATION       ACT                         (1) the President shall prohibit the export to Syria
SANCTIONS WITH RESPECT TO PAKISTAN                         of any item, including the issuance of a license for the
                                                           export of any item, on the United States Munitions
    Note: Pub. L. No. 107-57, October 27, 2001, 115        List or Commerce Control List of dual-use items in the
    Stat. 403 authorizes the President to exercise         Export Administration Regulations (15 CFR part 730
    waivers of foreign assistance restrictions with        et seq.); and
    respect to Pakistan through September 30, 2002
    and for other purposes. Section 2 of the Act                (2) the President shall impose two or more of the
    relates to exercise of waiver authority under          following sanctions:
    section 11B(b)(5) of the Export Administration
    Act.                                                           (A) Prohibit the export of products of the
                                                           United States (other than food and medicine) to Syria.
Sec. 2. Increased Flexibility in the Exercise of
Waiver Authority of MTCR and Export                                 (B) Prohibit United States businesses from
Administration Act Sanctions with Respect to               investing or operating in Syria.
Pakistan.
                                                                    (C) Restrict Syrian diplomats in Washington,
Any waiver under 73(e) of the Arms Export Control          D.C., and at the United Nations in New York City, to
Act (22 U.S.C. 2797b(e)), or under section 11B(b)(5)       travel only within a 25-mile radius of Washington,
of the Export Administration Act of 1979 (or               D.C., or the United Nations headquarters building,
successor statute), with respect to a sanction that was    respectively.
imposed on foreign persons in Pakistan prior to
January 1, 2001, may be exercisedB                                  (D) Prohibit aircraft of any air carrier owned
                                                           or controlled by Syria to take off from, land in, or
(1) only after consultation with the appropriate           overfly the United States.
congressional committees; and
                                                                   (E) Reduce United States diplomatic contacts
(2) without regard to the notification periods set forth   with Syria (other than those contacts required to
in the respective section authorizing the waiver.          protect United States interests or carry out the

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purposes of this Act).
                                                                  (2) the Government of Syria ended its occupation
          (F) Block transactions in any property in           of Lebanon described in section 2(7) of this Act;
which the Government of Syria has any interest, by
any person, or with respect to any property, subject to           (3) the Government of Syria has ceased the
the jurisdiction of the United States.                        development and deployment of medium- and
                                                              long-range surface-to-surface ballistic missiles, is not
(b) Waiver.--The President may waive the application          pursuing or engaged in the research, development,
of subsection (a)(1), (a)(2), or both if the President        acquisition, production, transfer, or deployment of
determines that it is in the national security interest of    biological, chemical, or nuclear weapons, has
the United States to do so and submits to the                 provided credible assurances that such behavior will
appropriate congressional committees a report                 not be undertaken in the future, and has agreed to
containing the reasons for the determination.                 allow United Nations and other international
                                                              observers to verify such actions and assurances; and
(c) Authority To Provide Assistance To Syria.--If the
President--                                                        (4) the Government of Syria has ceased all
                                                              support for, and facilitation of, all terrorist activities
    (1) makes the determination that Syria meets the          inside of Iraq, including preventing the use of territory
requirements described in paragraphs (1) through (4)          under its control by any means whatsoever to support
of subsection (d) and certifies such determination to         those engaged in terrorist activities inside of Iraq.
Congress in accordance with such subsection;
                                                              Part III.21  EMERGENCY WARTIME
    (2) determines that substantial progress has been         SUPPLEMENTAL APPROPRIATIONS ACT OF
made both in negotiations aimed at achieving a peace          2003
agreement between Israel and Syria and in
negotiations aimed at achieving a peace agreement                 Note: Pub. L. No. 108-11 of April 16, 2003
between Israel and Lebanon; and                                   authorized the President to suspend the
                                                                  application of provisions of the Iraq Sanctions
     (3) determines that the Government of Syria is               Act of 1990. Only sections 1503 and 1504 are
strictly respecting the sovereignty, territorial integrity,       set forth below.
unity, and political independence of Lebanon under
the sole and exclusive authority of the Government of         Sec. 1503 -- The President may suspend the
Lebanon through the Lebanese army throughout                  application of any provision of the Iraq Sanctions Act
Lebanon, as required under paragraph (4) of United            of 1990: Provided, That nothing in this section shall
Nations Security Council Resolution 520 (1982), then          affect the applicability of the Iran-Iraq Arms
the President is authorized to provide assistance to          Non-Proliferation Act of 1992 (Public Law 102-484),
Syria under chapter 1 of part I of the Foreign                except that such Act shall not apply to humanitarian
Assistance Act of 1961 (relating to development               assistance and supplies: Provided further, That the
assistance).                                                  President may make inapplicable with respect to Iraq
                                                              section 620A of the Foreign Assistance Act of 1961 or
(d) Certification.--A certification under this                any other provision of law that applies to countries
subsection is a certification transmitted to the              that have supported terrorism: Provided further, That
appropriate congressional committees of a                     military equipment, as defined by title XVI, section
determination made by the President that--                    1608(1)(A) of Public Law 102-484, shall not be
                                                              exported under the authority of this section: Provided
    (1) the Government of Syria has ceased providing          further, That section 307 of the Foreign Assistance
support for international terrorist groups and does not       Act of 1961 shall not apply with respect to programs
allow terrorist groups, such as Hamas, Hizballah,             of international organizations for Iraq: Provided
Palestinian Islamic Jihad, the Popular Front for the          further, That provisions of law that direct the United
Liberation of Palestine, and the Popular Front for the        States Government to vote against or oppose loans or
Liberation of Palestine--General Command to                   other uses of funds, including for financial or technical
maintain facilities in territory under Syrian control;        assistance, in international financial institutions for

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Iraq shall not be construed as applying to Iraq:          APPROPRIATE TOOLS REQUIRED TO
Provided further, That the President shall submit a       INTERCEPT AND OBSTRUCT TERRORISM
notification 5 days prior to exercising any of the        ACT OF 2001 (USA PATRIOT ACT)
authorities described in this section to the Committee
on Appropriations of each House of the Congress, the          Note: Only Section 221(b) of the USA PATRIOT
Committee on Foreign Relations of the Senate, and the         Act is set forth below. It is codified at 22 USC
Committee on International Relations of the House of          7210.
Representatives: Provided further, That not more than
60 days after enactment of this Act and every 90 days
thereafter the President shall submit a report to the     Sec. 221 Trade Sanctions
Committee on Appropriations of each House of the
Congress, the Committee on Foreign Relations of the       (a) [see part III.17 above]
Senate, and the Committee on International Relations
of the House of Representatives containing a summary      (b) Application of the Trade Sanctions Reform
of all licenses approved for export to Iraq of any item       and Export Enhancement Act. B Nothing in the
on the Commerce Control List contained in the Export          Trade     Sanctions     Reform     and     Export
Administration Regulations, 15 CFR Part 774,                  Enhancement Act of 2000 shall limit the
Supplement 1, including identification of end users of        application or scope of any law establishing
such items: Provided further, That the authorities            criminal or civil penalties, including any
contained in this section shall expire on September 30,       Executive order or regulations promulgated
2004, or on the date of enactment of a subsequent Act         pursuant to such laws (or similar or successor
authorizing assistance for Iraq and that specifically         laws), for the unlawful export of any agricultural
amends, repeals or otherwise makes inapplicable the           commodity, medicine, or medical device to B
authorities of this section, whichever occurs first.
                                                                   (1) a foreign organization, group, or person
Sec. 1504 B Notwithstanding any other provision of        designated pursuant to Executive Order No. 12947 of
law, the President may authorize the export to Iraq of    January 23, 1995, as amended;
any nonlethal military equipment controlled under the
International Trafficking in Arms Regulations on the               (2) a Foreign Terrorist Organization pursuant
United States Munitions List established pursuant to      to the Antiterrorism and Effective Death Penalty Act
section 38 of the Arms Export Control Act (22 U.S.C.      of 1996 (Public Law 104-132);
2778), if the President determines and notifies within
5 days prior to export the Committee on                            (3) a foreign organization, group, or person
Appropriations of each House of the Congress, the         designated pursuant to Executive Order No. 13244
Committee on Foreign Relations of the Senate, and the     (September 23, 2001);
Committee on International Relations of the House of
Representatives that the export of such nonlethal                 (4) any narcotics trafficking entity designated
military equipment is in the national interest of the     pursuant to Executive Order No. 12978 (October 21,
United States: Provided, That the limitation regarding    1995) or the Foreign Narcotics Kingpin Designation
nonlethal military equipment shall not apply to           Act (Public Law 106-120); or
military equipment designated by the Secretary of
State for use by a reconstituted (or interim) Iraqi                 (5) any foreign organization, group, or
military or police force: Provided further, That the      persons subject to any restriction for its involvement
authorities contained in this section shall expire on     in weapons of mass destruction or missile
September 30, 2004, or on the date of enactment of a      proliferation.
subsequent Act authorizing assistance for Iraq and that
specifically amends, repeals or otherwise makes
inapplicable the authorities of this section, whichever
occurs first.

Part  III.22        UNITING    AND                        Part III.23    ENERGY POLICY ACT OF 2005
STRENGTHENING AMERICA BY PROVIDING

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     Note: Only section 632 of Pub. L. No. 109-58 is        information are regulated by the Department of
set forth below. It amends section 129 of the Atomic        Energy, the Department of Commerce, or the
Energy Act of 1954, codified at 42 U.S.C. 2158, by          Commission, except to the extent that           such
adding a new subsection.                                    technologies, equipment, seals, cameras, devices,
                                                            detectors, or systems are available for use in the
SEC. 632. Prohibition on Nuclear Exports to                 design or construction of nuclear reactors or nuclear
Countries that Sponsor Terrorism                            weapons.

(a) In General B Section 129 of the Atomic Energy               (3) The President may waive the application of
Act of 1954 (42 U.S.C. 2158) is amended --                  paragraph (1) to a country if the President determines
                                                            and certifies to Congress that the waiver will not
    (1) by inserting ``a.” before ``No nuclear              result in any increased risk that the country receiving
materials and equipment”; and                               the waiver will acquire nuclear weapons, nuclear
                                                            reactors, or any materials or components of nuclear
    (2) by adding at the end the following new              weapons and--
subsection:
                                                                     (A) the government of such country has not
     b. (1) Notwithstanding any other provision of law,     within the preceding 12-month period willfully aided
including specifically section 121 of this Act, and         or abetted the international proliferation of nuclear
except as provided in paragraphs (2) and (3), no            explosive devices to individuals or groups or willfully
nuclear materials and equipment or sensitive nuclear        aided and abetted an individual or groups in acquiring
technology, including items and assistance authorized       unsafeguarded nuclear materials;
by section 57 b. of this Act and regulated under part
810 of title 10, Code of Federal Regulations, and                     (B) in the judgment of the President, the
nuclear-related items on the Commerce Control List          government of such country has provided adequate,
maintained under part 774 of title 15 of the Code of        verifiable assurances that it will cease its support for
Federal Regulations, shall be exported or reexported,       acts of international terrorism;
or transferred or retransferred whether directly or
indirectly, and no Federal agency shall issue any                    (C) the waiver of that paragraph is in the vital
license, approval, or authorization for the export or       national security interest of the United States; or
reexport, or transfer, or retransfer, whether directly or
indirectly, of these items or assistance (as defined in              (D) such a waiver is essential to prevent or
this paragraph) to any country whose government             respond to a serious radiological hazard in the country
has been identified by the Secretary of State as            receiving the waiver that may or does threaten public
engaged in state sponsorship of terrorist activities        health and safety.
(specifically including any country the government
of which has been determined by the Secretary of            (b) Applicability to Exports Approved for
State under section 620A(a) of the Foreign Assistance       Transfer but Not Transferred.--Subsection b. of
Act of 1961 (22 U.S.C. 2371(a)), section 6(j)(1) of         section 129 of Atomic Energy Act of 1954, as added
the Export Administration Act of 1979 (50 U.S.C.            by subsection (a) of this section, shall apply with
App. 2405(j)(1)), or section 40(d) of the Arms              respect to exports that have been approved for transfer
Export Control Act (22 U.S.C. 2780(d)) to have              as of the date of the enactment of this Act but have not
repeatedly provided support for acts of international       yet been transferred as of that date.
terrorism).

     (2) This subsection shall not apply to exports,        Part III.24  COMPREHENSIVE                        IRAN
reexports, transfers, or retransfers of radiation           SACNTIONS,  ACCOUNTABILITY,                        AND
monitoring technologies, surveillance equipment,            DIVESTMENT ACT OF 2010
seals, cameras, tamper-indication devices, nuclear
detectors, monitoring systems, or equipment                      Note: Only Title III of Pub. L. No 111-195 is set
necessary to safely store, transport, or remove             forth below.
hazardous materials, whether such items, services, or

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SEC. 301. DEFINITIONS.                                       service, or technology while the good, service, or
                                                             technology is in transit to the end-user of the good,
In this title:                                               service, or technology.

     (1) ALLOW.—The term “allow”, with respect to                (9) INTERNATIONAL TRAFFIC IN ARMS
the diversion through a country of goods, services, or       REGULATIONS.—The term “International Traffic in
technologies, means the government of the country            Arms Regulations” means subchapter M of chapter I
knows or has reason to know that the territory of the        of title 22, Code of Federal Regulations (or any
country is being used for such diversion.                    corresponding similar regulation or ruling).

    (2)    APPROPRIATE        CONGRESSIONAL                       (10) IRAN.—The term “Iran” includes the
COMMITTEES.—The            term    “appropriate              Government of Iran and any agency or instrumentality
congressional committees” means—                             of Iran.

         (A) the Committee on Banking, Housing, and               (11) IRANIAN END-USER.—The term “Iranian
Urban Affairs, the Committee on Foreign Relations,           end-user” means an end-user that is the Government
and the Select Committee on Intelligence of the              of Iran or a person in, or an agency or instrumentality
Senate; and                                                  of, Iran.

        (B) the Committee on Foreign Affairs and                  (12) IRANIAN INTERMEDIARY.—The term
the Permanent Select Committee on Intelligence of the        “Iranian intermediary” means an intermediary that is
House of Representatives.                                    the Government of Iran or a person in, or an agency or
                                                             instrumentality of, Iran.
     (3) COMMERCE CONTROL LIST.—The term
“Commerce Control List” means the list maintained                 (13)       STATE         SPONSOR             OF
pursuant to part 774 of the Export Administration            TERRORISM.—The term “state sponsor of
Regulations (or any corresponding similar regulation         terrorism” means any country the government of
or ruling).                                                  which the Secretary of State has determined has
                                                             repeatedly provided support for acts of international
     (4) DIVERT; DIVERSION.—The terms “divert”               terrorism pursuant to—
and “diversion” refer to the transfer or release, directly
or indirectly, of a good, service, or technology to an                (A) section 6(j)(1)(A) of the Export
end-user or an intermediary that is not an authorized        Administration Act of 1979 (50 U.S.C. App.
recipient of the good, service, or technology.               2405(j)(1)(A)) (or any successor thereto);

    (5) END-USER.—The term “end-user”, with                          (B) section 40(d) of the Arms Export Control
respect to a good, service, or technology, means the         Act (22 U.S.C. 2780(d)); or
person that receives and ultimately uses the good,
service, or technology.                                              (C) section 620A(a) of the Foreign
                                                             Assistance Act of 1961 (22 U.S.C. 2371(a)).
     (6)      EXPORT            ADMINISTRATION
REGULATIONS.—The term “Export Administration                      (14)    UNITED       STATES        MUNITIONS
Regulations” means subchapter C of chapter VII of            LIST.—The term “United States Munitions List”
title 15, Code of Federal Regulations (or any                means the list maintained pursuant to part 121 of the
corresponding similar regulation or ruling).                 International Traffic in Arms Regulations (or any
                                                             corresponding similar regulation or ruling).
     (7) GOVERNMENT.—The term “government”
includes any agency or instrumentality of a                  SEC. 302. IDENTIFICATION OF COUNTRIES
government.                                                  OF CONCERN WITH RESPECT TO THE
                                                             DIVERSION      OF   CERTAIN    GOODS,
     (8)      INTERMEDIARY.—The                term          SERVICES, AND TECHNOLOGIES TO OR
“intermediary” means a person that receives a good,          THROUGH IRAN.

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                                                                      (2) not less frequently than annually.
     (a) IN GENERAL.—Not later than 180 days after
the date of the enactment of this Act, the Director of            (d) FORM.—The report required by subsection
National Intelligence shall submit to the President, the     (a) and the updates required by subsection (c) may be
Secretary of Defense, the Secretary of Commerce, the         submitted in classified form.
Secretary of State, the Secretary of the Treasury, and
the appropriate congressional committees a report that
identifies each country the government of which the          SEC. 303. DESTINATIONS OF DIVERSION
Director believes, based on all information available        CONCERN.
to the Director, is allowing the diversion through the
country of goods, services, or technologies described            (a) DESIGNATION.—
in subsection (b) to Iranian end-users or Iranian
intermediaries.                                                       (1) IN GENERAL.—The President shall
                                                             designate a country as a Destination of Diversion
     (b)       GOODS,         SERVICES,           AND        Concern if the President determines that the
TECHNOLOGIES DESCRIBED.—Goods, services,                     government of the country allows substantial
or technologies described in this subsection are goods,      diversion of goods, services, or technologies described
services, or technologies—                                   in section 302(b) through the country to Iranian
                                                             end-users or Iranian intermediaries.
         (1) that—
                                                                      (2)         DETERMINATION                OF
              (A) originated in the United States;           SUBSTANTIAL.—For purposes of paragraph (1), the
                                                             President shall determine whether the government of a
              (B) would make a material contribution         country allows substantial diversion of goods,
to Iran’s—                                                   services, or technologies described in section 302(b)
                                                             through the country to Iranian end-users or Iranian
                  (i) development          of    nuclear,    intermediaries based on criteria that include—
chemical, or biological weapons;
                                                                          (A) the volume of such goods, services,
                (ii) ballistic missile or advanced           and technologies that are diverted through the country
conventional weapons capabilities; or                        to such end-users or intermediaries;

                  (iii) support      for    international                  (B) the inadequacy of the export controls
terrorism; and                                               of the country;
              (C) are—
                                                                            (C) the unwillingness or demonstrated
                   (i) items on the Commerce Control         inability of the government of the country to control
List or services related to those items; or                  the diversion of such goods, services, and
                                                             technologies to such end-users or intermediaries; and
                  (ii) defense articles or defense
services on the United States Munitions List; or                           (D) the unwillingness or inability of the
                                                             government of the country to cooperate with the
          (2) that are prohibited for export to Iran under   United States in efforts to interdict the diversion of
a resolution of the United Nations Security Council.         such goods, services, or technologies to such
                                                             end-users or intermediaries.
     (c) UPDATES.—The Director of National
Intelligence shall update the report required by                 (b) REPORT ON DESIGNATION.—Upon
subsection (a)—                                              designating a country as a Destination of Diversion
                                                             Concern under subsection (a), the President shall
         (1) as new information becomes available;           submit to the appropriate congressional committees a
and                                                          report—


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         (1) notifying those committees of the              and
designation of the country; and
                                                                         (C) submits to the appropriate
         (2) containing a list of the goods, services,      congressional committees a report describing the steps
and technologies described in section 302(b) that the       specified in subparagraph (A) being taken by the
President determines are diverted through the country       government of the country.
to Iranian end-users or Iranian intermediaries.
                                                                      (2)       ADDITIONAL           12-MONTH
     (c) LICENSING REQUIREMENT.—Not later                   PERIODS.—The President may delay the imposition
than 45 days after submitting a report required by          of the licensing requirement under subsection (c) with
subsection (b) with respect to a country designated as      respect to a country designated as a Destination of
a Destination of Diversion Concern under subsection         Diversion Concern under subsection (a) for additional
(a), the President shall require a license under the        12- month periods after the 12-month period referred
Export Administration Regulations or the                    to in paragraph (1) if the President, for each such
International Traffic in Arms Regulations (whichever        12-month period—
is applicable) to export to that country a good, service,
or technology on the list required under subsection                       (A) makes the determinations described
(b)(2), with the presumption that any application for       in subparagraphs (A) and (B) of paragraph (1) with
such a license will be denied.                              respect to the country; and

   (d) DELAY OF IMPOSITION OF LICENSING                                   (B) submits to the appropriate
REQUIREMENT.—                                               congressional committees an updated version of the
                                                            report required by subparagraph (C) of paragraph (1).
         (1) IN GENERAL.—The President may
delay the imposition of the licensing requirement                    (3)     STRENGTHENING               EXPORT
under subsection (c) with respect to a country              CONTROL SYSTEMS.—If the President determines
designated as a Destination of Diversion Concern            under paragraph (1)(B) that is it appropriate to carry
under subsection (a) for a 12-month period if the           out    government-to-government        activities   to
President—                                                  strengthen the export control system of a country
                                                            designated as a Destination of Diversion Concern
              (A) determines that the government of         under subsection (a), the United States shall initiate
the country is taking steps—                                government-to-government activities that may
                                                            include—
                  (i) to institute an export control                     (A) cooperation by agencies and
system or strengthen the export control system of the       departments of the United States with counterpart
country;                                                    agencies and departments in the country—

                  (ii) to interdict the diversion of                          (i) to develop or strengthen the
goods, services, or technologies described in section       export control system of the country;
302(b) through the country to Iranian end-users or
Iranian intermediaries; and                                                    (ii) to strengthen cooperation
                                                            among agencies of the country and with the United
                 (iii) to comply with and enforce           States and facilitate enforcement of the export control
United Nations Security Council Resolutions 1696            system of the country; and
(2006), 1737 (2006), 1747 (2007), 1803 (2008), and
1929 (2010), and any other resolution that is agreed to                       (iii) to promote information and
by the Security Council and imposes sanctions with          data exchanges among agencies of the country and
respect to Iran;                                            with the United States;

             (B) determines that it is appropriate to                     (B) training officials of the country to
carry out government-to-government activities to            strengthen the export control systems of the country—
strengthen the export control system of the country;

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                  (i) to facilitate legitimate trade in
goods, services, and technologies; and                                  (B) provides support for acts of
                                                          international terrorism; and
                  (ii) to prevent terrorists and state
sponsors of terrorism, including Iran, from obtaining              (2) assesses the feasability and advisability of
nuclear, biological, and chemical weapons, defense        expanding the system established under section 303
technologies, components for improvised explosive         for designating countries as Destinations of Diversion
devices, and other defense articles; and                  Concern to include countries identified under
                                                          paragraph (1).
              (C) encouraging the government of the
country to participate in the Proliferation Security           (b) FORM.—The report required by subsection
Initiative, such as by entering into a ship boarding      (a) may be submitted in classified form.
agreement pursuant to the Initiative.
                                                          SEC. 305. ENFORCEMENT AUTHORITY.
     (e) TERMINATION OF DESIGNATION.—The
designation of a country as a Destination of Diversion    The Secretary of Commerce may designate any
Concern under subsection (a) shall terminate on the       employee of the Office of Export Enforcement of the
date on which the President determines, and certifies     Department of Commerce to conduct activities
to the appropriate congressional committees, that the     specified in clauses (i), (ii), and (iii) of section
country has adequately strengthened the export            12(a)(3)(B) of the Export Administration Act of 1979
control system of the country to prevent the diversion    (50 U.S.C. App. 2411(a)(3)(B)) when the employee is
of goods, services, and technologies described in         carrying out activities to enforce—
section 302(b) to Iranian end-users or Iranian
intermediaries.                                               (1) the provisions of the Export Administration
                                                          Act of 1979 (50 U.S.C. App. 2401 et seq.) (as in effect
    (f) FORM OF REPORTS.—A report required by             pursuant to the International Emergency Economic
subsection (b) or (d) may be submitted in classified      Powers Act (50 U.S.C. 1701 et seq.));
form.
                                                              (2) the provisions of this title, or any other
SEC. 304. REPORT ON EXPANDING                             provision of law relating to export controls, with
DIVERSION   CONCERN   SYSTEM    TO                        respect to which the Secretary of Commerce has
ADDRESS THE DIVERSION OF UNITED                           enforcement responsibility; or
STATES ORIGIN GOODS, SERVICES, AND
TECHNOLOGIES TO CERTAIN COUNTRIES                             (3) any license, order, or regulation issued
OTHER THAN IRAN.                                          under—

     (a) IN GENERAL.—Not later than 1 year after                   (A) the Export Administration Act of 1979
the date of the enactment of this Act, the President      (50 U.S.C. App. 2401 et seq.) (as in effect pursuant to
shall submit to the appropriate congressional             the International Emergency Economic Powers Act
committees a report that—                                 (50 U.S.C. 1701 et seq.)); or

         (1) identifies any country that the President            (B) a provision of law referred to in
determines is allowing the diversion, in violation of     paragraph (2).
United States law, of items on the Commerce Control
List or services related to those items, or defense       Part III.25    NATIONAL   DEFENSE
articles or defense services on the United States         AUTHORIZATION ACT FOR FISCAL YEAR
Munitions List, that originated in the United States to   2013
another country if such other country—
                                                               Note: Only Title XII of Pub. L. No 112-239 is set
              (A) is seeking to obtain nuclear,           forth below.
biological, or chemical weapons, or ballistic missiles;
or

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SEC. 1261. REMOVAL OF SATELLITES AND
RELATED ITEMS FROM THE UNITED
                                                             (c) Prohibition-
STATES MUNITIONS LIST.

                                                                (1) IN GENERAL- Subject to paragraph (3), no
  (a) Repeal-
                                                           satellites or related items that are made subject to the
                                                           Export Administration Regulations (15 CFR part 730
    (1) IN GENERAL- Section 1513 of the Strom              et seq.) as a result of the enactment of subsection (a) of
Thurmond National Defense Authorization Act for            this section, whether or not enumerated on the
Fiscal Year 1999 (Public Law 105-261; 112 Stat.            Commerce Control List—
2174; 22 U.S.C. 2778 note) is amended by striking
subsection (a).
                                                                    (A) may be exported, re-exported, or
                                                           transferred, directly or indirectly, to—
    (2) CONFORMING AMENDMENT- Subsection
(c) of such section is amended by striking `(1)
                                                                      (i) any government of a country described
Subsection (a)' and all that follows through `(2) The
                                                           in paragraph (2); or
amendments' and inserting `The amendments'.

                                                                      (ii) any entity or person in or acting for or
  (b) Additional Determination and Report-
                                                           on behalf of such government, entity, or person; or
Accompanying but separate from the submission to
Congress of the first notification after the date of the
enactment of this Act under section 38(f) of the Arms               (B) may be launched in a country described
Export Control Act (22 U.S.C. 2778(f)) relating to the     in paragraph (2) or as part of a launch vehicle owned,
removal of satellites and related items from the United    operated, or manufactured by the government of such
States Munitions List, the President shall also submit     country or any entity or person in or acting for or on
to Congress—                                               behalf of such government, entity, or person.

     (1) a determination by the President that the              (2) COUNTRIES DESCRIBED- The countries
removal of such satellites and items from the United       referred to in paragraph (1) are the following:
States Munitions List is in the national security
interests of the United States; and
                                                                    (A) The People's Republic of China.
     (2) a report identifying and analyzing any
differences between—                                                (B) North Korea.


         (A) the recommendations and draft                          (C) Any country that is a state sponsor of
regulations for controlling the export, re-export, and     terrorism.
transfer of such satellites and related items that were
submitted in the report to Congress required by section
1248 of the National Defense Authorization Act for              (3) WAIVER- The President may waive the
Fiscal Year 2010 (Public Law 111-84; 123 Stat.             prohibition in paragraph (1) on a case-by-case basis if
2546); and                                                 not later than 30 days before doing so the President—


          (B) the final regulations under which the                  (A) determines that it is in the national
export, re-export, and transfer of such satellites and     interest of the United States to do so; and
related items would continue to be controlled.

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                                                             and the Select Committee on Intelligence of the
        (B) notifies the appropriate congressional           Senate; and
committees of such determination.                                (2) the Committee on Foreign Affairs and the
                                                             Permanent Select Committee on Intelligence of the
                                                             House of Representatives.
  (d) Presumption of Denial- Any license or other
authorization to export satellites and related items to a
country with respect to which the United States              SEC.   1263. REPORT   ON   COUNTRY
maintains a comprehensive arms embargo shall be              EXEMPTIONS FOR LICENSING OF EXPORTS
subject to a presumption of denial.                          OF CERTAIN SATELLITES AND RELATED
                                                             ITEMS.

  (e) Report-
                                                                (a) In General- Not later than 120 days after the date
                                                             of the enactment of this Act, the Secretary of
     (1) IN GENERAL- Not later than one year after           Commerce, in consultation with the Attorney General,
the date of the enactment of this Act, and annually          the Secretary of Homeland Security, and the heads of
thereafter, the Director of National Intelligence, in        other Federal departments and agencies as
consultation with the Secretary of State, shall submit       appropriate, shall submit to the appropriate
to the appropriate congressional committees a report         congressional committees a report that contains an
on efforts of state sponsors of terrorism, other foreign     assessment of the extent to which the terms and
countries, or entities to illicitly acquire satellites and   conditions of exemptions for foreign countries to the
related items.                                               licensing requirements and other authorizations to
                                                             export satellites and related items that are subject to
                                                             the Export Administration Regulations (15 CFR part
     (2) FORM- The report required by paragraph (1)          730 et seq.) as a result of the enactment of section
shall be submitted in unclassified form, but may             1261(a) contain strong safeguards.
contain a classified annex.

                                                                (b) Matters to Be Included- The report required by
SEC. 1262. REPORT ON LICENSES AND                            subsection (a) shall include a description of the extent
OTHER AUTHORIZATIONS TO EXPORT                               to which the terms and conditions of exemptions
CERTAIN SATELLITES AND RELATED                               described in subsection (a), including other relevant
ITEMS.                                                       laws, regulations, and practices, support law
                                                             enforcement efforts to detect, prevent, and prosecute
                                                             criminal, administrative, and other violations of any
   (a) In General- Not later than 60 days after the end      provision of the Export Administration Regulations
of each calendar year through 2020, the President shall      (15 CFR part 730 et seq.), including efforts on the part
submit to the committees of Congress specified in            of state sponsors of terrorism, organizations
subsection (b) a report summarizing all licenses and         determined by the Secretary of State to have provided
other authorizations to export satellites and related        support for international terrorism, or other foreign
items that are subject to the Export Administration          countries, to acquire illicitly satellites and related
Regulations (15 CFR part 730 et seq.) as a result of the     items from the United States.
enactment of section 1261(a).

                                                             SEC. 1264. END-USE MONITORING OF
  (b) Committees of Congress Specified- The                  CERTAIN SATELLITES AND RELATED
committees of Congress specified in this subsection          ITEMS.
are--
   (1) the Committee on Foreign Relations, the
Committee on Banking, Housing, and Urban Affairs,              (a) In General- In order to ensure accountability
                                                             with respect to the export of satellites and related

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items that become subject to the Export
Administration Regulations (15 CFR part 730 et seq.)
                                                              (b) Additional Rule- Nothing in this subtitle or any
as a result of the enactment of section 1261(a), the
                                                            amendment made by this subtitle shall be construed as
President shall provide for the end-use monitoring of
                                                            removing or limiting the authorities of the President
such satellites and related items.
                                                            under subsection (a) or (b) of section 1514 of the
                                                            Strom Thurmond National Defense Authorization Act
  (b) Report- Not later than 120 days after the date of     for Fiscal Year 1999 (Public Law 105-261; 112 Stat.
the enactment of this Act, the Secretary of Commerce,       2175; 22 U.S.C. 2778 note) with respect to defense
in consultation with the heads of other Federal             articles and defense services that remain subject to the
departments and agencies as appropriate, shall submit       jurisdiction of the International Traffic in Arms
to Congress a report describing the actions taken to        Regulations.
implement this section, including identification of
resource shortfalls or other constraints on effective
                                                            SEC. 1267. DEFINITIONS.
end-use monitoring of satellites and related items
described in subsection (a).
                                                            In this subtitle:
SEC. 1265. INTERAGENCY REVIEW OF                            (1)     APPROPRIATE       CONGRESSIONAL
MODIFICATIONS TO CATEGORY XV OF                             COMMITTEES- The term `appropriate congressional
THE UNITED STATES MUNITIONS LIST.                           committees' means--
                                                              (A) the Committee on Foreign Relations, the
                                                            Committee on Banking, Housing, and Urban Affairs,
  (a) In General- Subject to section 38(f) of the Arms
                                                            the Committee on Armed Services, and the Select
Export Control Act (22 U.S.C. 2778(f)), the President
                                                            Committee on Intelligence of the Senate; and
shall ensure that the Secretary of State, the Secretary
of Defense, the Secretary of Commerce and, as
appropriate, the Director of National Intelligence and        (B) the Committee on Foreign Affairs, the
the heads of other appropriate Federal departments          Committee on Armed Services, and the Permanent
and agencies, will review any removal or addition of        Select Committee on Intelligence of the House of
an item to Category XV of the United States                 Representatives.
Munitions List (relating to spacecraft systems and
associated equipment).
                                                            (2) STATE SPONSOR OF TERRORISM- The term
                                                            `state sponsor of terrorism' means any country the
   (b) Effective Date- The requirement of subsection        government of which the Secretary of State has
(a) shall apply with respect to any item described in       determined has repeatedly provided support for
subsection (a) that is proposed to be removed or added      international terrorism pursuant to—
to Category XV of the United States Munitions List on
or after the date of the enactment of this Act.
                                                              (A) section 6(j) of the Export Administration Act of
                                                            1979 (50 U.S.C. App. 2405) (as continued in effect
SEC. 1266. RULES OF CONSTRUCTION.                           under the International Emergency Economic Powers
                                                            Act);
   (a) In General- Subtitle B of title XV of the Strom
Thurmond National Defense Authorization Act for               (B) section 620A of the Foreign Assistance Act of
Fiscal Year 1999 (Public Law 105-261; 112 Stat.             1961 (22 U.S.C. 2371);
2173; 22 U.S.C. 2778 note) shall continue to apply to
satellites and related items that are subject to the
Export Administration Regulations (15 CFR part 730            (C) section 40 of the Arms Export Control Act (22
et seq.) as a result of the enactment of section 1261(a).   U.S.C. 2780); or


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  (D) any other provision of law.


(3) UNITED STATES MUNITIONS LIST- The term
`United States Munitions List' means the list referred
to in section 38(a)(1) of the Arms Export Control Act
(22 U.S.C. 2778(a)(1)).




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                                    PART IV

                      OTHER EXECUTIVE ORDERS AND
                        PRESIDENTIAL DOCUMENTS
           RELEVANT TO THE EXPORT ADMINISTRATION REGULATIONS




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Part IV.1. FUNCTIONS RELATING                         TO     2158).
NUCLEAR NON-PROLIFERATION
                                                                  (e) That function vested by Section 131c of the
                Executive Order 12058                        1954 Act (92 Stat. 129, 42 U.S.C. 2160(c)); except
                                                             that, the Secretary shall not waive the 60-day
     By virtue of the authority vested in me by the          requirement for the preparation of a Nuclear
Nuclear Non-Proliferation Act of 1978 (Public Law            Non-Proliferation Assessment Statement for more
95-242, 92 Stat. 120, 22 U.S.C. 3201) and the Atomic         than 60 days without the approval of the President.
Energy Act of 1954, as amended (42 U.S.C. 2011 et
seq.), and Section 301 of Title 3 of the United States           Sec. 3.    Department of Commerce.         The
Code, and as President of the United States of Amer-         Secretary of Commerce shall be responsible for
ica, it is hereby ordered as follows:                        performing the function vested in the President by
                                                             Section 309(c) of the Act (92 Stat. 141, 42 U.S.C.
     Section 1.    Department of Energy.         The         2139a).
following functions vested in the President by the
Nuclear Non-Proliferation Act of 1978 (92 Stat. 120,             Sec. 4. Coordination. In performing the
22 U.S.C. 3201), hereinafter referred to as the 1954         functions assigned to them by this Order, the Secretary
Act, are delegated or assigned to the Secretary of           of Energy and the Secretary of State shall consult and
Energy;                                                      coordinate their actions with each other and with the
                                                             heads of other concerned agencies.
    (a) That function vested by Section 402(b) of the
Act (92 Stat. 145, 42 U.S.C. 2153a).                             Sec. 5. General Provisions. (a) Executive
                                                             Order No. 11902 of February 2, 1976, entitled
     (b) Those functions vested by Sections                  “Procedures for an Export Licensing Policy as to
131a(2)(G), 131b(1), and 131f(2) of the 1954 Act (92         Nuclear Materials and Equipment,” is revoked.
Stat. 127, 42 U.S.C. 2160).
                                                                       (b) The performance of functions under
     (c) That      function    vested     by      Section    either the Act or the 1954 Act shall not be delayed
131f(1)(A)(ii) of the 1954 Act to the extent it relates to   pending the development of procedures, even though
the preparation of a detailed generic plan.                  as many as 120 days are allowed for establishing
                                                             them. Except where it would be inconsistent to do so,
     Sec. 2. Department of State. The Secretary of           such functions shall be carried out in accordance with
State shall be responsible for performing the following      procedures similar to those in effect immediately prior
functions vested in the President:                           to the effective date of the Act.

     (a) Those functions vested by Sections 104(a),          Jimmy Carter
104(d), 105, 403, 404, 407, and 501 of the Act (92           THE WHITE HOUSE
Stat. 122, 123, 123, 146, 147, 148, and 148, 22 U.S.C.       May 11, 1978
3223(a), 3223(d), 3224, and 42 U.S.C. 2153b, 2153c,
2153e, and 22 U.S.C. 3261).
                                                             Part IV.2. IMPLEMENTATION                 OF     THE
     (b) That function vested by Section 128a(2) of          CUBAN DEMOCRACY ACT
the 1954 Act (92 Stat. 137, 42 U.S.C. 2157(a)(2)).
                                                                            Executive Order 12854
    (c) That function vested by Section 601 of the
Act to the extent it relates to the preparation of an        By the authority vested in me as President by the
annual report.                                               Constitution and the laws of the United States of
                                                             America, including the Trading with the Enemy Act,
    (d) The preparation of timely information and            as amended (50 U.S.C. App. 1-6, 7-39, 41-44), the
recommendations related to the President's functions         Cuban Democracy Act of 1992 (Public Law 102-484,
vested by Sections 126, 128b, and 129 of the 1954 Act        sections 1701-1712, October 23, 1992, 106 Stat. 2575)
(92 Stat. 131, 137, and 138 42 U.S.C. 2155, 2157, and        (the “Act”), and section 301 of title 3, United States

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Code,                                                       Part IV.3.       Reserved

I, WILLIAM J. CLINTON, President of the United
States of America, hereby order:                            Part IV.4.    PROHIBITING   CERTAIN
                                                            TRANSACTIONS   WITH    RESPECT   TO
Section 1. Implementation of the Act. All agencies          RWANDA AND DELEGATING AUTHORITY
are hereby directed to take all appropriate measures        WITH RESPECT TO OTHER UNITED
within their authority, including the promulgation of       NATIONS ARMS EMBARGOES
rules and regulations, to carry out the provisions of the
Act.                                                                        Executive Order 12918

Sec. 2. Functions of the Department of State. The           By the authority vested in me as President by the
Secretary of State shall be responsible for                 Constitution and the laws of the United States of
implementing sections 1704, 1707, and 1708 of the           America, including section 5 of the United Nations
Act. Responsibility for transmitting the certification      Participation Act of 1945, as amended (22 U.S.C.
required by section 1707 and the report required by         287c), the Export Administration Act of 1979, as
section 1708 of the Act is delegated to the Secretary of    amended (50 U.S.C. App. 2401 et seq.), the Arms
State.                                                      Export Control Act (22 U.S.C. 2751 et seq.), and
                                                            section 301 of title 3, United States Code, and in view
Sec. 3. Functions of the Department of the Treasury.        of United Nations Security Council Resolution 918 of
Except as provided in section 4 of this order, the          May 17, 1994, it is hereby ordered as follows:
Secretary of the Treasury shall be responsible for
implementing sections 1705(b)-(e) and 1706 of the           Section 1. Arms Embargo. The following activities
Act, to the extent that these sections pertain to trans-    are prohibited, notwithstanding the existence of any
actions with Cuba.                                          rights or obligations conferred or imposed by any
                                                            international agreement or any contract entered into or
Sec. 4. Functions of the Department of Commerce.            any license or permit granted before the effective date
The Secretary of Commerce shall be responsible for          of this order, except to the extent provided in
implementing sections 1705(b)-(e) of the Act, to the        regulations, orders, directives, or licenses that may
extent that these sections pertain to the exportation to    hereafter be issued pursuant to this order:
Cuba from the United States or from a third country of
goods and technology subject to the jurisdiction of the          (a) The sale or supply to Rwanda from the
Department of Commerce.                                     territory of the United States by any person, or by any
                                                            United States person in any foreign country or other
Sec. 5. Consultation. In consultation with the              location, or using any U.S.-registered vessel or
Secretary of State, the Secretary of the Treasury and       aircraft, of arms and related materiel of all types,
the Secretary of Commerce are hereby authorized to          including weapons and ammunition, military vehicles
take such actions, including the promulgation of rules      and equipment, paramilitary police equipment, and
and regulations, as may be necessary to carry out the       spare parts for the aforementioned, irrespective of
purposes of the Act and this order.                         origin. This prohibition does not apply to activities
                                                            related to the United Nations Assistance Mission for
Sec. 6. Nothing in this order shall be deemed to            Rwanda or the United Nations Observer Mission
affect any functions vested by law in the Federal           Uganda-Rwanda or other entities permitted to have
Communications Commission.                                  such items by United Nations Security Council; and

Sec. 7. Effective Date. This order shall be effective           (b) Any willful evasion or attempt to violate or
immediately.                                                evade any of the prohibitions set forth in this order, by
                                                            any person.
WILLIAM J. CLINTON
THE WHITE HOUSE                                             Sec. 2. Definitions. For purposes of this order, the
July 4, 1993.                                               term:


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     (a) “Person” means a natural person as well as a       with the Secretary of State are hereby authorized to
corporation, business association, partnership, society,    promulgate rules and regulations, and to employ all
trust, or any other entity, organization or group,          powers granted to the President by section 5 of the
including governmental entities; and                        United Nations Participation Act and not otherwise
                                                            delegated by Executive order, as may be necessary to
     (b) “United States person” means any citizen or        carry out the purpose of implementing any other arms
national of the United States, any lawful permanent         embargo mandated by resolution of the United
resident of the United States, or any corporation,          Nations Security Council, consistent with the
business association, partnership, society, trust, or any   allocation of functions delegated under section 3 of
other entity, organization or group, including              this order. The Secretary of State or the Secretary
governmental entities, organized under the laws of the      of Commerce may redelegate any of these functions to
United States (including foreign branches).                 other officers and agencies of the United States
                                                            Government.
Sec. 3.      Responsibilities.    The functions and
responsibilities for the enforcement of the foregoing       Sec. 6. Judicial Review. Nothing contained in this
prohibitions are delegated as follows:                      order shall create any right or benefit, substantive or
                                                            procedural, enforceable by any party against the
     (a) The Secretary of State is hereby authorized to     United States, its agencies or instrumentalities, its
take such actions, including the promulgation of rules      officers or employees, or any other person.
and regulations, and to employ all powers granted to
the President by section 5 of the United Nations            Sec. 7. Effective Date. This order shall take effect at
Participation Act and other authorities available to the    11:59 p.m. eastern day-light time on May 26, 1994.
Secretary of State, as may be necessary to carry out the
purpose of this order, relating to arms and related         WILLIAM J. CLINTON
materiel of a type enumerated on the United States          THE WHITE HOUSE,
Munitions List (22 C.F.R. Part 121). The Secretary          May 26, 1994.
of State may redelegate any of these functions to other
officers and agencies of the United States
Government; and                                             Part IV.5. DELEGATION OF AUTHORITIES
     (b) The Secretary of Commerce, in consultation         UNDER       THE    IRAN-IRAQ   ARMS
with the Secretary of State, is hereby authorized to        NON-PROLIFERATION ACT OF 1992
take such actions, including the promulgation of rules
and regulations, and to employ all powers granted to               Memorandum for the Secretary of State
the President by section 5 of the United Nations
Participation Act and other authorities available to the    By virtue of the authority vested in me by the
Secretary of Commerce, as may be necessary to carry         Constitution and laws of the United States of America,
out the purpose of this order, relating to arms and         including Sections 1602-1608 of the Iran-Iraq Arms
related materiel identified in the Export                   Non-Proliferation Act of 1992 (Title XVI of Public
Administration Regulations (15 C.F.R. Parts                 Law 102-484) (the “Act”) and Section 301 of Title 3
730-799).      The Secretary of Commerce may                of the United States Code, I hereby delegate to the
redelegate any of these functions to other officers and     Secretary of State (“Secretary”) all functions vested in
agencies of the United States Government.                   me by the Act without limitation of the authority of
                                                            other officials to exercise powers heretofore or
Sec. 4. Authorization. All agencies of the United           hereafter delegated to them to implement sanctions
States Government are hereby directed to take all           imposed or actions directed by the Secretary pursuant
appropriate measures within their authority to carry        to this delegation of authority.
out the provisions of this order, including suspension
or termination of licenses or other authorizations in       In exercising these functions, the Secretary shall
effect as of the date of this order.                        consult with the Secretary of Defense, the Secretary of
                                                            the Treasury, the Secretary of Commerce, the Director
Sec. 5. Delegation of Authority. The Secretary of           of the Arms Control and Disarmament Agency, and
State and the Secretary of Commerce in consultation         the heads of other departments and agencies as

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appropriate.                                                license or permit granted prior to the effective date:

This delegation of authority shall also apply to any         (a)     all property and interests in property of:
amendments or successor legislation to the Act.
                                                                   (i)   the persons listed in the Annex to this order;
You are authorized and directed to publish this
memorandum in the Federal Register.                                (ii) foreign persons designated by the Secretary
                                                                   of State, in coordination with the Secretary of the
WILLIAM J. CLINTON                                                 Treasury and the Attorney General, because they
THE WHITE HOUSE,                                                   are found:
Washington, September 27, 1994.
                                                                        (A) to have committed, or to pose a
                                                                   significant risk of committing, acts of violence
Part IV.6. PROHIBITING TRANSACTIONS                                that have the purpose or effect of disrupting the
WITH TERRORISTS WHO THREATEN TO                                    Middle East peace process, or
DISRUPT THE MIDDLE EAST PEACE
PROCESS                                                                (B)     to assist in, sponsor, or provide
                                                                   financial, material, or technological support for,
      Executive Order 12947, as amended by                         or services in support of, such acts of violence;
Executive Order 13099 22                                           and

By the Authority vested in me as President by the                  (iii) persons determined by the Secretary of the
Constitution and the laws of the United States of                  Treasury, in coordination with the Secretary of
America, including the International Emergency                     State and the Attorney General, to be owned or
Economic Powers Act (50 U.S.C. 1701 et seq.),                      controlled by, or to act for or on behalf of, any of
(IEEPA), the National Emergencies Act (50 U.S.C.                   the foregoing persons, that are in the United
1601 et seq.), and section 301 of title 3, United States           States, that hereafter come within the United
Code,                                                              States, or that hereafter come within the
                                                                   possession or control of United States persons,
I, WILLIAM J. CLINTON, President of the United                     are blocked;
States of America, find that grave acts of violence
committed by foreign terrorists that disrupt the Middle     (b) any transaction or dealing by United States
East peace process constitute an unusual and                persons or within the United States in property or
extraordinary threat to the national security, foreign      interests in property of the persons designated in or
policy, and economy of the United States, and hereby        pursuant to this order is prohibited, including the
declare a national emergency to deal with that threat.      making or receiving of any contribution of funds,
                                                            goods, or services to or for the benefit of such persons;
I hereby order:
                                                            (c) any transaction by any United States person or
Section 1. Except to the extent provided in section         within the United States that evades or avoids, or has
203(b)(3) and (4) of IEEPA (50 U.S.C. 1702(b)(3) and        the purpose of evading or avoiding, or attempts to
(4)) and in regulations, orders, directives, or licenses    violate, any of the prohibitions set forth in this order,
that may be issued pursuant to this order, and              is prohibited.
notwithstanding any contract entered into or any
                                                            Sec. 2. For the purposes of this order:
               22
                  The Annex to Executive Order 12947        (a) the term “person” means an individual or entity;
designating the terrorist organizations which threaten to
disrupt the Middle East peace process is not reproduced.    (b) the term “entity” means a partnership,
Executive Order 13099 of August 20, 1998 (63 FR 45167,
                                                            association, corporation, or other organization, group,
August 25, 1998) amended the Annex to Executive Order
12947.                                                      or subgroup;


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(c) the term “United States person” means any Unit-        Sec. 6. (a) This order is effective at 12:01 a.m.,
ed States citizen, permanent resident alien, entity        eastern standard time on January 24, 1995.
organized under the laws of the United States
(including foreign branches), or any person in the         (b) This order shall be transmitted to the Congress
United States; and                                         and published in the Federal Register.

(d) the term “foreign person” means any citizen or         WILLIAM J. CLINTON
national of a foreign state (including any such            THE WHITE HOUSE,
individual who is also a citizen or national of the        January 23, 1995.
United States) or any entity not organized solely under
the laws of the United States or existing solely in the
United States, but does not include a foreign state.       Part IV.7. PROHIBITING     CERTAIN
                                                           TRANSACTIONS WITH RESPECT TO IRAN
Sec. 3. I hereby determine that the making of
donations of the type specified in section 203(b)(2)(A)                    Executive Order 12959
of IEEPA (50 U.S.C. 1702(b)(2)(A)) by United States
persons to persons designated in or pursuant to this       By the authority vested in me as President by the
order would seriously impair my ability to deal with       Constitution and the laws of the United States of
the national emergency declared in this order, and         America, including the International Emergency
hereby prohibit such donations as provided by section      Economic Powers Act (50 U.S.C. 1701 et seq.)
1 of this order.                                           (IEEPA), the National Emergencies Act (50 U.S.C.
                                                           1601 et seq.), section 505 of the International Security
Sec. 4. (a) The Secretary of the Treasury, in              and Development Cooperation Act of 1985 (22 U.S.C.
consultation with the Secretary of State and, as           2349aa-9) (ISDCA), and section 301 of title 3, United
appropriate, the Attorney General, is hereby               States Code,
authorized to take such actions including the
promulgation of rules and regulations, and to employ       I, WILLIAM J. CLINTON, President of the United
all powers granted to me by IEEPA as may be                States of America, in order to take steps with respect
necessary to carry out the purpose of this order. The      to Iran in addition to those set forth in Executive Order
Secretary of the Treasury may redelegate any of these      No. 12957 of March 15, 1995, to deal with the unusual
functions to other officers and agencies of the United     and extraordinary threat to the national security,
States Government. All agencies of the United States       foreign policy, and economy of the United States
Government are hereby directed to take all appropriate     referred to in that order, hereby order:
measures within their authority to carry out the
provisions of this order.                                  Section 1. The following are prohibited, except to
                                                           the extent provided in regulations, orders, directives,
(b) Any investigation emanating from a possible            or licenses that may be issued pursuant to this order,
violation of this order, or of any license, order, or      and notwithstanding any contract entered into or any
regulation issued pursuant to this order, shall first be   license or permit granted prior to the effective date of
coordinated with the Federal Bureau of Investigation       this order:
(FBI), and any matter involving evidence of a criminal
violation shall be referred to the FBI for further             (a) the importation into the United States, or the
investigation. The FBI shall timely notify the             financing of such importation, of any goods or
Department of the Treasury of any action it takes on       services of Iranian origin, other than Iranian-origin
such referrals.                                            publications and materials imported for news
                                                           publications or news broadcast dissemination;
Sec. 5. Nothing contained in this order shall create
any right or benefit, substantive or procedural,                (b) except to the extent provided in section
enforceable by any party against the United States,        203(b) of IEEPA (50 U.S.C. 1702(b)), the exportation
its agencies or instrumentalities, its officers or         from the United States to Iran, the Government of
employees, or any other persons.                           Iran, or to any entity owned or controlled by the
                                                           Government of Iran, or the financing of such

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exportation, of any goods, technology (including             association, trust, joint venture, corporation, or other
technical data or other information subject to the           organization;
Export Administration Regulations, 15 CFR Parts
768-799 (1994) (the “EAR”)), or services;                         (c) the term “United States person” means any
                                                             United States citizen, permanent resident alien, entity
     (c) the reexportation to Iran, the Government of        organized under the laws of the United States
Iran, or to any entity owned or controlled by the            (including foreign branches), or any person in the
Government of Iran, of any goods or technology               United States;
(including technical data or other information)
exported from the United States, the exportation of              (d) the term “Iran” means the territory of Iran
which to Iran is subject to export license application       and any other territory or marine area, including the
requirements under any United States regulations in          exclusive economic zone and continental shelf, over
effect immediately prior to the issuance of this order,      which the Government of Iran claims sovereignty,
unless, for goods, they have been (i) substantially          sovereign rights or jurisdiction, provided that the
transformed outside the United States, or (ii)               Government of Iran exercises partial or total de facto
incorporated into another product outside the United         control over the area or derives a benefit from
States and constitute less than 10 percent by value of       economic activity in the area pursuant to international
that product exported from a third country;                  arrangements; and

     (d) except to the extent provided in section                 (e) the term “new investment” means (i) a
203(b) of IEEPA (50 U.S.C. 1702(b)), any transaction,        commitment or contribution of funds or other assets,
including purchase, sale, transportation, swap,              or (ii) a loan or other extension of credit.
financing, or brokering transactions, by a United
States person relating to goods or services of Iranian       Sec. 3. The Secretary of the Treasury, in consultation
origin or owned or controlled by the Government of           with the Secretary of State, is hereby authorized to
Iran;                                                        take such actions, including the promulgation of rules
                                                             and regulations, the requirement of reports, including
    (e) any new investment by a United States                reports by United States persons on oil transactions
person in Iran or in property (including entities)           engaged in by their foreign affiliates with Iran or the
owned or controlled by the Government of Iran;               Government of Iran, and to employ all powers granted
                                                             to the President by IEEPA and ISDCA as may be
      (f) the approval or facilitation by a United States    necessary to carry out the purposes of this order. The
person of the entry into or performance by an entity         Secretary of the Treasury may redelegate any of these
owned or controlled by a United States person of a           functions to other officers and agencies of the United
transaction or contract (i) prohibited as to United          States Government. All agencies of the United States
States persons by subsection (c), (d), or (e) above, or      Government are hereby directed to take all appropriate
(ii) relating to the financing of activities prohibited as   measures within their authority to carry out the
to United States persons by those subsections, or of a       provisions of this order.
guaranty of another person's performance of such
transaction or contract; and                                 Sec. 4. The Secretary of the Treasury may not
                                                             authorize the exportation or reexportation to Iran, the
     (g) any transaction by any United States person         Government of Iran, or an entity owned or controlled
or within the United States that evades or avoids, or        by the Government of Iran of any goods, technology,
has the purpose of evading or avoiding, or attempts to       or services subject to export license application
violate, any of the prohibitions set forth in this order.    requirements of another agency of the United States
                                                             Government, if authorization of the exportation or
Sec. 2. For the purposes of this order:                      reexportation by that agency would be prohibited by
                                                             law.
     (a) the term “person” means an individual or
entity;                                                      Sec. 5. Sections 1 and 2 of Executive Order No.
                                                             12613 of October 29, 1987, and sections 1 and 2 of
    (b)    the term “entity” means a partnership,            Executive Order No. 12957 of March 15, 1995, are

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hereby revoked to the extent inconsistent with this        2349aa-9) (“ISDCA”), and section 301 of title 3,
order. Otherwise, the provisions of this order             United States Code,
supplement the provisions of Executive Orders No.
12613 and 12957.                                           I, WILLIAM J. CLINTON, President of the United
                                                           States of America, in order to clarify the steps taken in
Sec. 6. Nothing contained in this order shall create       Executive Orders 12957 of March 15, 1995, and
any right or benefit, substantive or procedural,           12959 of May 6, 1995, to deal with the unusual and
enforceable by any party against the United States, its    extraordinary threat to the national security, foreign
agencies or instrumentalities, its officers or             policy, and economy of the United States declared in
employees, or any other person.                            Executive Order 12957 in response to the actions and
                                                           policies of the Government of Iran, hereby order:
Sec. 7. The measures taken pursuant to this order are
in response to actions of the Government of Iran           Section 1. Except to the extent provided in section 3
occurring after the conclusion of the 1981 Algiers         of this order or in regulations, orders directives, or
Accords, and are intended solely as a response to those    licenses issued pursuant to this order, and
later actions.                                             notwithstanding any contract entered into or any
                                                           license or permit granted prior to the effective date of
Sec. 8. (a) This order is effective at 12:01 a.m.,         this order, the importation into the United States of
eastern daylight time, on May 7, 1995, except that (i)     any goods or services of Iranian origin or owned or
section 1(b), (c), and (d) of this order shall not apply   controlled by the Government of Iran, other than
until 12:01 a.m., eastern daylight time, on June 6,        information or informational materials within the
1995, to trade transactions under contracts in force as    meaning of section 203(b)(3) of IEEPA (50 U.S.C.
of the date of this order if such transactions are         1702(b)(3)), is hereby prohibited.
authorized pursuant to Federal regulations in force
immediately prior to the date of this order (“existing     Sec. 2. Except to the extent provided in section 3 of
trade contracts”), and (ii) letters of credit and other    this order, in section 203(b) of IEEPA (50 U.S.C.
financing agreements with respect to existing trade        1702(b)), or in regulations, orders, directives, or
contracts may be performed pursuant to their terms         licenses issued pursuant to this order, and
with respect to underlying trade transactions occurring    notwithstanding any contract entered into or any
prior to 12:01 a.m., eastern daylight time, on June 6,     license or permit granted prior to the effective date of
1995.                                                      this order, the following are prohibited:

   (b) This order shall be transmitted to the                  (a) the exportation, reexportation, sale, or
Congress and published in the Federal Register.                supply, directly or indirectly, from the United
                                                               States, or by a United States person, wherever
William J. Clinton                                             located, of any goods, technology, or services to
THE WHITE HOUSE,                                               Iran or the Government of Iran, including the
May 6, 1995.                                                   exportation, reexportation, sale, or supply of any
                                                               goods, technology, or services to a person in a
                                                               third country undertaken with knowledge or
Part IV.8.   PROHIBITING   CERTAIN                             reason to know that:
TRANSACTIONS WITH RESPECT TO IRAN
                                                                    (i) such goods, technology, or services are
               Executive Order 13059                           intended specifically for supply, transshipment,
                                                               or reexportation, directly or indirectly, to Iran or
    By the authority vested in me as President by the          the Government of Iran; or
Constitution and the laws of the United States of
America, including the International Emergency                      (ii) such goods, technology, or services are
Economic Powers Act (50 U.S.C. 1701 et seq.)                   intended specifically for use in the production of,
(“IEEPA”), the National Emergencies Act (50 U.S.C.             for commingling with, or for incorporation into
1601 et seq.), section 505 of the International Security       goods, technology, or services to be directly or
and Development Cooperation Act of 1985 (22 U.S.C.             indirectly supplied, transshipped, or reexported

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    exclusively or predominantly to Iran or the
    Government of Iran;                                             (ii) goods, technology, or services for
                                                               exportation, reexportation, sale, or supply,
    (b)     the reexportation from a third country,            directly or indirectly, to Iran or the Government
    directly or indirectly, by a person other than a           of Iran;
    United States person of any goods, technology, or
    services that have been exported from the United            (e) any approval, financing, facilitation, or
    States, if:                                            guarantee by a United States person, wherever
                                                           located, of a transaction by a foreign person where the
        (i) undertaken with knowledge or reason to         transaction by that foreign person would be prohibited
    know that the reexportation is intended                by this order if performed by a United States person or
    specifically for Iran or the Government of Iran,       within the United States; and
    and
                                                                (f) any transaction by a United States person or
         (ii) the exportation of such goods,               within the United States that evades or avoids, or has
    technology, or services to Iran from the United        the purpose of evading or avoiding, or attempts to
    States was subject to export license application       violate, any of the prohibitions set forth in this order.
    requirements under any United States regulations
    in effect on May 6,1995, or thereafter is made         Sec. 3.      Specific licenses issued pursuant to
    subject to such requirements imposed                   Executive Orders 12613 (of October 29, 1987), 12957,
    independently of the actions taken pursuant to the     or 12959 continue in effect in accordance with their
    national emergency declared in Executive Order         terms except to the extent revoked, amended, or
    12957; provided, however, that this prohibition        modified by the Secretary of the Treasury. General
    shall not apply to those goods or that technology      licenses, regulations, orders and directives issued
    subject to export license application requirements     pursuant to those orders continue in effect in
    if such goods or technology have been:                 accordance with their terms except to the extent
                                                           inconsistent with this order or to the extent revoked,
              (A) substantially transformed into a         amended, or modified by the Secretary of the
         foreign-made product outside the United           Treasury.
         States; or
                                                           Sec. 4. For the purposes of this order:
              (B) incorporated into a foreign-made
         product outside the United States if the               (a) the term “person” means an individual or
         aggregate value of such controlled United         entity;
         States goods and technology constitutes less
         than 10 percent of the total value of the             (b) the term “entity” means a partnership,
         foreign-made product to be exported from a        association, trust, joint venture, corporation, or other
         third country;                                    organization;

     (c) any new investment by a United States                  (c) the term “United States person” means any
person in Iran or in property, including entities, owned   United States citizen, permanent resident alien, entity
or controlled by the Government of Iran;                   organized under the laws of the United States
                                                           (including foreign branches), or any person in the
     (d) any transaction or dealing by a United States     United States;
person, wherever located, including purchasing,
selling, transporting, swapping, brokering, approving,         (d) the term “Iran” means the territory of Iran
financing, facilitating, or guaranteeing, in or related    and other territory or marine area, including the
to:                                                        exclusive economic zone and continental shelf, over
                                                           which the Government of Iran claims sovereignty,
       (i) goods or services of Iranian origin or          sovereign rights, or jurisdiction, provided that the
    owned or controlled by the Government of Iran;         Government of Iran exercises partial or total de facto
    or                                                     control over the area or derives a benefit from

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economic activity in the area pursuant to international    applicable laws and regulations subject to the
arrangements;                                              jurisdiction of that department or agency.

     (e) the term “Government of Iran” includes the        Sec. 7. The provisions of this order consolidate the
Government of Iran, any political subdivision, agency,     provisions of Executive Order 12613, 12957, and
or instrumentality thereof, and any person owned or        12959. Executive Order 12613 and subsections (a),
controlled by, or acting for or on behalf of, the          (b), (c), (d), and (f) of section 1 to Executive Order
Government of Iran;                                        12959 are hereby revoked with respect to transactions
                                                           occurring after the effective date of this order. The
    (f) the term “new investment” means:                   revocation of those provisions shall not alter their
                                                           applicability to any transaction or violation occurring
         (i) a commitment or contribution of funds         before the effective date of this order, nor shall it
    or other assets; or                                    affect the applicability of any rule, regulation, order,
                                                           license or other form of administrative action
         (ii) a loan or other extension of credit, made    previously taken pursuant to Executive Orders 12613
    after the effective date of Executive Order 12957      or 12959.
    as to transactions prohibited by that order, or
    otherwise made after the effective date of             Sec. 8. Nothing contained in this order shall create
    Executive Order 12959.                                 any right or benefit, substantive or procedural,
                                                           enforceable by any party against the United States, its
Sec. 5. The Secretary of the Treasury, in                  agencies or instrumentalities, its officers or
consultation with the Secretary of State and, as           employees, or any other person.
appropriate, other agencies, is hereby authorized to
take such actions, including the promulgation of rules     Sec. 9. The measures taken pursuant to this order are
and regulations, the requirement of reports, including     in response to actions of the Government of Iran
reports by United States persons on oil and related        occurring after the conclusion of the 1981 Algiers
transactions engaged in by their foreign affiliates with   Accords, and are intended solely as a response to those
Iran or the Government of Iran, and to employ all          later actions.
powers granted to me by IEEPA and the ISDCA as
may be necessary to carry out the purposes of this         Sec. 10. (a) This order is effective at 12:01 a.m.
order. The Secretary of the Treasury may redelegate        eastern daylight time on August 20, 1997.
any of these functions to other officers and agencies of
the United States Government. All agencies of the                (b) This order shall be transmitted to the
United States Government are hereby directed to take       Congress and published in the Federal Register.
all appropriate measures within their authority to carry
out the provisions of this order.                          WILLIAM J. CLINTON
                                                           THE WHITE HOUSE,
Sec. 6. (a) The Secretary of the Treasury may              August 19, 1997.
authorize the exportation or reexportation to Iran or
the Government of Iran of any goods, technology, or
services also subject to export license application        PART IV.9.  BLOCKING PROPERTY AND
requirements of another agency of the United States        PROHIBITING TRANSACTIONS WITH THE
Government only if authorization by that agency of         TALIBAN
the exportation or reexportation to Iran would be
permitted by law.                                                          Executive Order 13129

    (b) Nothing contained in this order shall be                By the authority vested in me as President by the
construed to supersede the requirements established        Constitution and the laws of the United States of
under any other provision of law or to relieve a person    America, including the International Emergency
from any requirement to obtain a license or other          Economic Powers Act (IEEPA) (50 U.S.C. 1701 et
authorization from another department or agency of         seq.), the National Emergencies Act (50 U.S.C. 1601
the United States Government in compliance with            et seq.), and section 301 of title 3, United States Code,

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                                                           interests in property blocked pursuant to this order is
      I, WILLIAM J. CLINTON, President of the              prohibited, including the making or receiving of any
United States of America, find that the actions and        contribution of funds, goods, or services to or for the
policies of the Taliban in Afghanistan, in allowing        benefit of the Taliban or persons designated pursuant
territory under its control in Afghanistan to be used as   to this order;
a safe haven and base of operations for Usama bin
Ladin and the Al-Qaida organization who have               (b) the exportation, reexportation, sale or supply,
committed and threaten to continue to commit acts of       directly or indirectly, from the United States, or by a
violence against the United States and its nationals,      United States person, wherever located, of any goods,
constitute an unusual and extraordinary threat to the      software, technology (including technical data), or
national security and foreign policy of the United         services to the territory of Afghanistan controlled by
States, and hereby declare a national emergency to         the Taliban or to the Taliban or persons designated
deal with that threat.                                     pursuant to this order is prohibited;

    I hereby order:                                        (c) the importation into the United States of any
                                                           goods, software, technology or services owned or
Section 1. Except to the extent provided in section        controlled by the Taliban or persons designated
203(b) of IEEPA (50 U.S.C. 1702(b)), and in                pursuant to his order or from the territory of
regulations, orders, directives, or licenses that may be   Afghanistan controlled by the Taliban is prohibited;
issued pursuant to this order, and notwithstanding any
contract entered into or any license or permit granted     (d) any transaction by any United States person or
prior to the effective date:                               within the United States that evades or avoids, or has
                                                           the purpose of evading or avoiding, or attempts to
    (a) all property and interests in property of the      violate, any of the prohibitions set forth in this order is
    Taliban; and                                           prohibited; and

    (b) all property and interests in property of          (e) any conspiracy formed to violate any of the
    persons determined by the Secretary of the             prohibitions set forth in this order is prohibited.
    Treasury, in consultation with the Secretary of
    State and the attorney General:                        Sec. 3. The Secretary of the Treasury, in
                                                           consultation with the Secretary of State, is hereby
         (i) to be owned or controlled by, or to act for   directed to authorize commercial sales of agricultural
         or on behalf of, the Taliban; or                  commodities and products, medicine, and medical
                                                           equipment for civilian end use in the territory of
         (ii) to provide financial, material, or           Afghanistan controlled by the Taliban under
         technological support for, or services in         appropriate safeguards to prevent diversion to
         support of, any of the foregoing,                 military, paramilitary, or terrorist end users or end use
                                                           or to political end use.
that are in the United States, that hereafter come
within the United States, or that are or hereafter come    Sec. 4. For the purposes of this order:
within the possession or control of United States
persons, are blocked.                                      (a) The term “person” means an individual or entity;

Sec. 2. Except to the extent provided in section           (b)      The term “entity” means a partnership,
203(b) of IEEPA (50 U.S.C. 1702(b)) and in                 association, corporation, or other organization, group,
regulations, orders, directives, or licenses that may be   or subgroup;
issued pursuant to this order, and notwithstanding any
contract entered into or any license or permit granted     (c) the term “the Taliban” means the political/military
prior to the effective date:                               entity headquartered in Kandahar, Afghanistan that as
                                                           of the date of this order exercises de facto control over
(a) any transaction or dealing by United States            the territory of Afghanistan described in paragraph (d)
persons or within the United States in property or         of the this section, its agencies and instrumentalities,

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and the Taliban leaders listed in the Annex to this
order or designated by the Secretary of State in           WILLIAM J. CLINTON
consultation with the secretary of the Treasury and the    THE WHITE HOUSE,
Attorney General. The Taliban is also known as the         July 4, 1999.
“Taleban,” “Islamic Movement of Taliban,” “the
Taliban Islamic Movement,” “Talibano Islami
Tahrik,” and “Tahrike Islami’a Taliban;”                   PART IV.10.           WAIVER OF NUCLEAR-
                                                           RELATED SANCTIONS ON INDIA AND
(d) The term “territory of Afghanistan controlled by       PAKISTAN 23
the Taliban” means the territory referred to as the        Presidential Determination No. 2001-28 of September
“Islamic Emirate of Afghanistan,” known in Pashtun         22, 2001
as “de Afghanistan Islami Emarat” or in Dari as
“Emarat Islamie Afghanistan,” including the                Memorandum for the Secretary of State
following provinces of the country of Afghanistan:
Kandahar, Farah, Helmund, Nimruz, Herat, Badghis,          Pursuant to section 9001(b) of the Department of
Ghowr, Oruzghon, Zabol, Paktiha, Ghazni,                   Defense Appropriations Act, 2000 (Public Law
Nangarhar, Lowgar, Vardan, Faryab, Jowlan, Balkh,          106-79), I hereby determine and certify to the
and Paktika. The Secretary of State, in consultation       Congress that the application to India and Pakistan of
with the Secretary of the Treasury, is hereby              the sanctions and prohibitions contained in
authorized to modify the description of the term           subparagraphs (B), (C), and (G) of section 102(b)(2)
“territory of Afghanistan controlled by the Taliban;”      of the Arms Export Control Act would not be in the
                                                           national security interests of the United States.
(e) the term “United States person” means any Unit-        Furthermore, pursuant to section 9001(a) of the
ed States citizen, permanent resident alien, entity        Department of Defense Appropriations Act, 2000
organized under the laws of the United States              (Public Law 106-79), I hereby waive, with respect to
(including foreign branches), or any person in the         India and Pakistan, to the extent not already waived,
United States.                                             the application of any sanction contained in section
                                                           101or 102 of the Arms Export Control Act, section
Sec. 5. The Secretary of the Treasury, in consultation     2(b)(4) of the Export Import Bank Act of 1945, and
with the Secretary of State and the Attorney General,      section 620E(e) of the Foreign Assistance Act of
is hereby authorized to take such actions, including the   1961, as amended.
promulgation of rules and regulations, and to employ
all powers granted to me by IEEPA as may be
necessary to carry out the purposes of this order. The              23
                                                                         The “Glenn Amendment” set forth in section
Secretary of the Treasury may redelegate any of these      826(a) of the Foreign Relations Authorization Act for Fiscal
functions to other officers and agencies of the United     Years 1994-95, Pub. L. 103-236, 108 Stat. 516, added a new
States Government. All agencies of the United States       Chapter 10, “Nuclear Non-proliferation Controls,” to the
Government are hereby directed to take all appropriate     Arms Export Control Act. Section 102(b) of this chapter,
measures within their authority to carry out the           codified at 22 U.S.C. 2799aa-1(b), required the President to
provisions of this order.                                  impose sanctions on countries under certain circumstances,
                                                           including prohibiting exports under Section 6 of the Export
                                                           Administration Act.           Pursuant to Presidential
Sec. 6. Nothing contained in this order shall create       Determinations 98-22 and 98-25, this authority was used to
any right or benefit, substantive or procedural,           impose sanctions on India and Pakistan for detonation of
enforceable by any party against the United States, its    nuclear explosive devices in 1998. The “Brownback
agencies or instrumentalities, its officers or             Amendment,” section 9001 of Pub. L. 106-79, October 25,
employees, or any other person.                            1999, 113 Stat. 1283, codified as a note to 22 U.S.C.
                                                           2799aa-1, amended the “Glenn Amendment” and permitted
Sec. 7. (a) This order is effective at 12:01 a.m.          the President to waive certain sanctions against India and
Eastern Daylight Time on July 6, 1999.                     Pakistan. The current Presidential Determination No.
                                                           2001-28 only waives the sanctions mandated by the “Glenn
                                                           Amendment” by removing the license denial policy against
(b) This order shall be transmitted to the Congress and    India and Pakistan.
published in the Federal Register.

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                                                               and extraordinary threat to the national security,
You are hereby authorized and directed to transmit             foreign policy, and economy of the United States, and
this determination and certification to the committees         in furtherance of my proclamation of September 14,
of the Congress and to arrange for its publication in          2001, Declaration of National Emergency by Reason
the Federal Register.                                          of Certain Terrorist Attacks, hereby declare a national
                                                               emergency to deal with that threat. I also find that
GEORGE W. BUSH                                                 because of the pervasiveness and expansiveness of the
THE WHITE HOUSE,                                               financial foundation of foreign terrorists, financial
September 22, 2001.                                            sanctions may be appropriate for those foreign persons
                                                               that support or otherwise associate with these foreign
                                                               terrorists. I also find that a need exists for further
PART IV.11. BLOCKING PROPERTY AND                              consultation and cooperation with, and sharing of
PROHIBITING   TRANSACTIONS   WITH                              information by, United States and foreign financial
PERSONS WHO COMMIT, THREATEN TO                                institutions as an additional tool to enable the United
COMMIT, OR SUPPORT TERRORISM                                   States to combat the financing of terrorism.

Executive Order 13224, as amended by Executive                 I hereby order:
Order 1337224
                                                               Section 1. Except to the extent required by section
By the authority vested in me as President by the              203(b) of IEEPA (50 U.S.C. 1702(b)), or provided in
Constitution and the laws of the United States of              regulations, orders, directives, or licenses that may be
America, including the International Emergency                 issued pursuant to this order, and notwithstanding any
Economic Powers Act (50 U.S.C. 1701 et seq.)                   contract entered into or any license or permit granted
(IEEPA), the National Emergencies Act (50 U.S.C.               prior to the effective date of this order, all property and
1601 et seq.), section 5 of the United Nations                 interests in property of the following persons that are
Participation Act of 1945, as amended (22 U.S.C.               in the United States or that hereafter come within the
287c) (UNPA), and section 301 of title 3, United               United States, or that hereafter come within the
States Code, and in view of United Nations Security            possession or control of United States persons are
Council Resolution (UNSCR) 1214 of December 8,                 blocked:
1998, UNSCR 1267 of October 15, 1999, UNSCR
1333 of December 19, 2000, and the multilateral                (a) foreign persons listed in the Annex to this order;
sanctions contained therein, and UNSCR 1363 of July
30, 2001, establishing a mechanism to monitor the              (b) foreign persons determined by the Secretary of
implementation of UNSCR 1333,                                  State, in consultation with the Secretary of the
                                                               Treasury and the Attorney General, to have
I, GEORGE W. BUSH, President of the United States              committed, or to pose a significant risk of committing,
of America, find that grave acts of terrorism and              acts of terrorism that threaten the security of U.S.
threats of terrorism committed by foreign terrorists,          nationals or the national security, foreign policy, or
including the terrorist attacks in New York,                   economy of the United States;
Pennsylvania, and the Pentagon committed on
September 11, 2001, acts recognized and condemned              (c) persons determined by the Secretary of the
in UNSCR 1368 of September 12, 2001, and UNSCR                 Treasury, in consultation with the Secretary of State
1269 of October 19, 1999, and the continuing and               and the Attorney General, to be owned or controlled
immediate threat of further attacks on United States           by, or to act for or on behalf of those persons listed in
nationals or the United States constitute an unusual           the Annex to this order or those persons determined to
                                                               be subject to subsection 1(b), 1(c), or 1(d)(i) of this
               24                                              order;
                    The Annex to Executive Order 13224
designating the foreign persons whose property and interests       (d) except as provided in section 5 of this order
in property are blocked is not reproduced; Executive Order
                                                               and after such consultation, if any, with foreign
13372 (70 FR 8499, February 18, 2005) amended the first
sentence of Section 4 of Executive Order 13224.                authorities as the Secretary of State, in consultation
                                                               with the Secretary of the Treasury and the Attorney

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General, deems appropriate in the exercise of his             organized under the laws of the United States
discretion, persons determined by the Secretary of the        (including foreign branches), or any person in the
Treasury, in consultation with the Secretary of State         United States; and
and the Attorney General;
                                                                  (d) the term “terrorism” means an activity that-
         (i) to assist in, sponsor, or provide financial,
material, or technological support for, or financial or               (i) involves a violent act or an act dangerous
other services to or in support of, such acts of              to human life, property, or infrastructure; and
terrorism or those persons listed in the Annex to this
order or determined to be subject to this order; or                    (ii) appears to be intended-

         (ii) to be otherwise associated with those                         (A) to intimidate or coerce a civilian
persons listed in the Annex to this order or those            population;
persons determined to be subject to subsection 1(b),
1(c),or 1(d)(i) of this order.                                            (B) to influence the policy of a
                                                              government by intimidation or coercion; or
Sec. 2. Except to the extent required by section 203(b)
of IEEPA (50 U.S.C. 1702(b)), or provided in                               (C) to affect the conduct of a
regulations, orders, directives, or licenses that may be      government by mass destruction, assassination,
issued pursuant to this order, and notwithstanding any        kidnapping, or hostage-taking.
contract entered into or any license or permit granted
prior to the effective date:                                  Sec. 4. I hereby determine that the making of
                                                              donations of the type specified in section 203(b)(2) of
     (a) any transaction or dealing by United States          IEEPA (50 U.S.C. 1702(b)(2)) by, to. or for the
persons or within the United States in property or            benefit of , any persons determined to be subject to
interests in property blocked pursuant to this order is       this order would seriously impair my ability to deal
prohibited, including but not limited to the making or        with the national emergency declared in this order,
receiving of any contribution of funds, goods, or             and would endanger Armed Forces of the United
services to or for the benefit of those persons listed in     States that are in a situation where imminent
the Annex to this order or determined to be subject to        involvement in hostilities is clearly indicated by the
this order;                                                   circumstances, and hereby prohibit such donations as
                                                              provided by section 1 of this order. Furthermore, I
     (b) any transaction by any United States person or       hereby determine that the Trade Sanctions Reform and
within the United States that evades or avoids, or has        Export Enhancement Act of 2000 (title IX, Public Law
the purpose of evading or avoiding, or attempts to            106-387) shall not affect the imposition or the
violate, any of the prohibitions set forth in this order is   continuation of the imposition of any unilateral
prohibited; and                                               agricultural sanction or unilateral medical sanction on
                                                              any person determined to be subject to this order
    (c) any conspiracy formed to violate any of the           because imminent involvement of the Armed Forces
prohibitions set forth in this order is prohibited.           of the United States in hostilities is clearly indicated
                                                              by the circumstances.
Sec. 3. For purposes of this order:
                                                              Sec. 5. With respect to those persons designated
     (a) the term “person” means an individual or             pursuant to subsection 1(d) of this order, the Secretary
entity;                                                       of the Treasury, in the exercise of his discretion and in
                                                              consultation with the Secretary of State and the
     (b) the term “entity” means a partnership,               Attorney General, may take such other actions than
association, corporation, or other organization, group,       the complete blocking of property or interests in
or subgroup;                                                  property as the President is authorized to take under
                                                              IEEPA and UNPA if the Secretary of the Treasury, in
    (c) the term “United States person” means any             consultation with the Secretary of State and the
United States citizen, permanent resident alien, entity       Attorney General, deems such other actions to be

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consistent with the national interests of the United       order, there need be no prior notice of a listing or
States, considering such factors as he deems               determination made pursuant to this order.
appropriate.
                                                           Sec. 11. (a) This order is effective at 12:01 a.m.
Sec. 6. The Secretary of State, the Secretary of the       eastern daylight time on September 24, 2001.
Treasury, and other appropriate agencies shall make
all relevant efforts to cooperate and coordinate with         (b) This order shall be transmitted to the Congress
other countries, including through technical               and published in the Federal Register.
assistance, as well as bilateral and multilateral
agreements and arrangements, to achieve the                GEORGE W. BUSH
objectives of this order, including the prevention and     THE WHITE HOUSE,
suppression of acts of terrorism, the denial of            September 23, 2001.
financing and financial services to terrorists and
terrorist organizations, and the sharing of intelligence
about funding activities in support of terrorism.          PART IV.12. BLOCKING PROPERTY OF
                                                           CERTAIN PERSONS AND PROHIBITING THE
Sec. 7. The Secretary of the Treasury, in consultation     EXPORT OF CERTAIN GOODS TO SYRIA
with the Secretary of State and the Attorney General,
is hereby authorized to take such actions, including the                  Executive Order 13338
promulgation of rules and regulations, and to employ
all powers granted to the President by IEEPA and           Note: Section 2 and 8 of E.O. 13338 concern the
UNPA as may be necessary to carry out the purposes         Department of Transportation, so are not set forth
of this order. The Secretary of the Treasury may           below.
redelegate any of these functions to other officers and
agencies of the United States Government. All              By the authority vested in me as President by the
agencies of the United States Government are hereby        Constitution and the laws of the United States of
directed to take all appropriate measures within their     America, including the International Emergency
authority to carry out the provisions of this order.       Economic Powers Act (50 U.S.C. 1701 et seq.)
                                                           (IEEPA), the National Emergencies Act (50 U.S.C.
Sec. 8. Nothing in this order is intended to affect the    1601 et seq.) (NEA), the Syria Accountability and
continued effectiveness of any rules, regulations,         Lebanese Sovereignty Restoration Act of 2003, Public
orders, licenses, or other forms of administrative         Law 108-175 (SAA), and section 301 of title 3, United
action issued, taken, or continued in effect heretofore    States Code, I, GEORGE W. BUSH, President of the
or hereafter under 31 C.F.R. chapter V, except as          United States of America, hereby determine that the
expressly terminated, modified, or suspended by or         actions of the Government of Syria in supporting
pursuant to this order.                                    terrorism, continuing its occupation of Lebanon,
                                                           pursuing weapons of mass destruction and missile
Sec. 9. Nothing contained in this order is intended to     programs, and undermining United States and
create, nor does it create, any right, benefit, or         international efforts with respect to the stabilization
privilege, substantive or procedural, enforceable at       and reconstruction of Iraq constitute an unusual and
law by a party against the United States, its agencies,    extraordinary threat to the national security, foreign
officers, employees or any other person.                   policy, and economy of the United States and hereby
                                                           declare a national emergency to deal with that threat.
Sec. 10. For those persons listed in the Annex to this     To address that threat, and to implement the SAA, I
order or determined to be subject to this order who        hereby order the following:
might have a constitutional presence in the United
States, I find that because of the ability to transfer     Section 1. (a) The Secretary of State shall not permit
funds or assets instantaneously, prior notice to such      the exportation or reexportation to Syria of any item
persons of measures to be taken pursuant to this order     on the United States Munitions List (22 C.F.R. part
would render these measures ineffectual. I therefore       121).
determine that for these measures to be effective in
addressing the national emergency declared in this         (b) Except to the extent provided in regulations,

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Legal Authority                                                                                                     165

orders, directives, or licenses that may be issued            limited to, Hamas, Hizballah, Palestinian Islamic
pursuant to the provisions of this order in a manner          Jihad, the Popular Front for the Liberation of
consistent with the SAA, and notwithstanding any              Palestine, the Popular Front for the Liberation of
license, permit, or authorization granted prior to the        Palestine- General Command, and any persons
effective date of this order,                                 designated pursuant to Executive Order 13224 of
                                                              September 23, 2001;
         (i) the Secretary of Commerce shall not
permit the exportation or reexportation to Syria of any               (ii) to be or to have been directing or
item on the Commerce Control List (15 C.F.R. part             otherwise significantly contributing to the
774); and                                                     Government of Syria's military or security presence in
                                                              Lebanon;
         (ii) with the exception of food and medicine,
the Secretary of Commerce shall not permit the                          (iii) to be or to have been directing or
exportation or reexportation to Syria of any product of       otherwise significantly contributing to the
the United States not included in section 1(b)(i) of this     Government of Syria's pursuit of the development and
order.                                                        production of chemical, biological, or nuclear
                                                              weapons       and    medium-       and     long-range
(c) No other agency of the United States Government           surface-to-surface missiles;
shall permit the exportation or reexportation to Syria
of any product of the United States, except to the                      (iv) to be or to have been directing or
extent provided in regulations, orders, directives, or        otherwise significantly contributing to any steps taken
licenses that may be issued pursuant to this order in a       by the Government of Syria to undermine United
manner consistent with the SAA, and notwithstanding           States and international efforts with respect to the
any license, permit, or authorization granted prior to        stabilization and reconstruction of Iraq; or
the effective date of this order.
                                                                         (v) to be owned or controlled by, or acting
                          * * * * * * *                       or purporting to act for or on behalf of, directly or
Sec. 3. (a) Except to the extent provided in section          indirectly, any person whose property or interests in
203(b)(1), (3), and (4) of the IEEPA (50 U.S.C.               property are blocked pursuant to this order.
1702(b)(1), (3), and (4)), and the Trade Sanctions
Reform and Export Enhancement Act of 2000 (title               (b) The prohibitions in paragraph (a) of this section
IX, Public Law 106-387) (TSRA), or regulations,               include, but are not limited to,
orders, directives, or licenses that may be issued
pursuant to this order, and notwithstanding any                        (i) the making of any contribution of funds,
contract entered into or any license or permit granted        goods, or services by, to, or for the benefit of any
prior to the effective date of this order, all property and   person whose property or interests in property are
interests in property of the following persons, that are      blocked pursuant to this order; and
in the United States, that hereafter come within the
United States, or that are or hereafter come within the                 (ii) the receipt of any contribution or
possession or control of United States persons,               provision of funds, goods, or services from any such
including their overseas branches, are blocked and            person.
may not be transferred, paid, exported, withdrawn, or
otherwise dealt in: persons who are determined by the         Sec. 4. (a) Any transaction by a United States person
Secretary of the Treasury, in consultation with the           or within the United States that evades or avoids, has
Secretary of State,                                           the purpose of evading or avoiding, or attempts to
                                                              violate any of the prohibitions set forth in this order is
           (i) to be or to have been directing or             prohibited.
otherwise significantly contributing to the
Government of Syria's provision of safe haven to or            (b) Any conspiracy formed to violate the prohibitions
other support for any person whose property or                set forth in this order is prohibited.
interests in property are blocked under United States
law for terrorism-related reasons, including, but not          Sec. 5. I hereby determine that the making of

Export Administration Regulations                                                                     January 23, 2013
Legal Authority                                                                                                  166

donations of the type of articles specified in section      in a manner consistent with the SAA. This waiver is
203(b)(2) of the IEEPA (50 U.S.C. 1702(b)(2)) would         made pursuant to the SAA only to the extent that
seriously impair the ability to deal with the national      regulation of such exports or reexports would not
emergency declared in this order, and hereby prohibit,      otherwise fall within my constitutional authority to
                                                            conduct the Nation's foreign affairs and protect
           (i) the exportation or reexportation of such     national security.
donated articles to Syria as provided in section 1(b) of
this order; and                                                               * * * * * *

           (ii) the making of such donations by, to, or     Sec. 9. I hereby direct the Secretary of State to take
for the benefit of any person whose property and            such actions, including the promulgation of rules and
interests in property are blocked pursuant to section 3     regulations, as may be necessary to carry out
of this order.                                              subsection 1(a) of this order. I hereby direct the
                                                            Secretary of Commerce, in consultation with the
                                                            Secretary of State, to take such actions, including the
Sec. 6. For purposes of this order:                         promulgation of rules and regulations, as may be
                                                            necessary to carry out subsection 1(b) of this order. I
(a) the term “person” means an individual or entity;        direct the Secretary of Transportation, in consultation
                                                            with the Secretary of State, to take such actions,
(b) the term “entity” means a partnership, association,     including the promulgation of rules and regulations, as
trust, joint venture, corporation, group, subgroup, or      may be necessary to carry out section 2 of this order.
other organization;                                         The Secretary of the Treasury, in consultation with the
                                                            Secretary of State, is hereby authorized to take such
(c) the term “United States person” means any United        actions, including the promulgation of rules and
States citizen, permanent resident alien, entity            regulations, and to employ all powers granted to the
organized under the laws of the United States or any        President by the IEEPA as may be necessary to carry
jurisdiction within the United States (including            out sections 3, 4, and 5 of this order. The Secretaries
foreign branches), or any person in the United States;      of State, Commerce, Transportation, and the Treasury
                                                            may redelegate any of these functions to other officers
(d) the term “Government of Syria” means the                and agencies of the United States Government
Government of the Syrian Arab Republic, its agencies,       consistent with applicable law. The Secretary of State,
instrumentalities, and controlled entities; and             in consultation with the Secretaries of Commerce,
                                                            Transportation, and the Treasury, as appropriate, is
(e) the term “product of the United States” means: for      authorized to exercise the functions and authorities
the purposes of subsection 1(b), any item subject to        conferred upon the President in subsection 5(b) of the
the Export Administration Regulations (15 C.F.R.            SAA and to redelegate these functions and authorities
parts 730-774); and for the purposes of subsection          consistent with applicable law. All agencies of the
1(c), any item subject to the export licensing              United States Government are hereby directed to take
jurisdiction of any other United States Government          all appropriate measures within their authority to carry
agency.                                                     out the provisions of this order and, where appropriate,
                                                            to advise the Secretaries of State, Commerce,
Sec. 7. With respect to the prohibitions contained in       Transportation, and the Treasury in a timely manner of
section 1 of this order, consistent with subsection 5(b)    the measures taken.
of the SAA, I hereby determine that it is in the national
security interest of the United States to waive, and        Sec. 10. This order is not intended to create, and does
hereby waive application of subsection 5(a)(1) and          not create, any right or benefit, substantive or
subsection 5(a)(2)(A) of the SAA so as to permit the        procedural, enforceable at law or in equity by any
exportation or reexportation of certain items as            party against the United States, its departments,
specified in the Department of Commerce's General           agencies, instrumentalities, or entities, its officers or
Order No. 2 to Supplement No. 1, 15 C.F.R. part 736,        employees, or any other person.
as issued consistent with this order and as may be
amended pursuant to the provisions of this order and        Sec. 11. For those persons whose property or interests

Export Administration Regulations                                                                  January 23, 2013
Legal Authority                                                                                                  167

in property are blocked pursuant to section 3 of this
order who might have a constitutional presence in the       By virtue of the authority vested in me by the
United States, I find that because of the ability to        Constitution and the laws of the United States,
transfer funds or assets instantaneously, prior notice to   including sections 1503 and 1504 of the Emergency
such persons of measures to be taken pursuant to this       Wartime Supplemental Act, 2003, Public Law 108-11
order would render these measures ineffectual. I            (the “Act”), and section 301 of title 3, United States
therefore determine that for these measures to be           Code, I hereby:
effective in addressing the national emergency
declared in this order, there need be no prior notice of    (1) suspend the application of all of the provisions,
a listing or determination made pursuant to this order.     other than section 586E, of the Iraq Sanctions Act of
                                                            1990, Public Law 101-513, and
 Sec. 12. The Secretary of the Treasury, in
consultation with the Secretary of State, is authorized     (2) make inapplicable with respect to Iraq section
to submit the recurring and final reports to the            620A of the Foreign Assistance Act of 1961, Public
Congress on the national emergency declared in this         Law 87-195, as amended (the “FAA”), and any other
order, consistent with section 401(c) of the NEA, 50        provision of law that applies to countries that have
U.S.C. 1641(c), and section 204(c) of the IEEPA, 50         supported terrorism.
U.S.C. 1703(c).
                                                            In addition, I delegate the functions and authorities
 Sec. 13. (a) This order is effective at 12:01 eastern      conferred upon the President by:
daylight time on May 12, 2004.
                                                            (1) section 1503 of the Act to submit reports to the
(b) This order shall be transmitted to the Congress and     designated committees of the Congress to the
published in the Federal Register.                          Secretary of Commerce, or until such time as the
                                                            principal licensing responsibility for the export to Iraq
GEORGE W. BUSH                                              of items on the Commerce Control List has reverted to
THE WHITE HOUSE,                                            the Department of Commerce, to the Secretary of the
May 11, 2004.                                               Treasury; and,

                                                            (2) section 1504 of the Act to the Secretary of State.
PART IV. 13. SUSPENDING THE IRAQ                            The functions and authorities delegated herein may be
SANCTIONS ACT, MAKING INAPPLICABLE                          further delegated and redelegated to the extent
CERTAIN     STATUTOR    PROVISIONS                          consistent with applicable law.
RELATED TO IRAQ, AND DELEGATING
AUTHORITIES, UNDER THE WARTIME                              The Secretary of State is authorized and directed to
SUPPLEMENTAL APPROPRIATIONS ACT,                            publish this determination in the Federal Register.
2003
                                                            GEORGE W. BUSH
        Presidential Determination No. 2003-23              THE WHITE HOUSE
                                                            May 7, 2003
Memorandum for the Secretary of State [and] the
Secretary of Commerce




Export Administration Regulations                                                                  January 23, 2013
General Information                                                                                            Part 730–page 1



Table	of	Contents	                                                         to 15 CFR chapter VII, subchapter C. The EAR
                                                                           are issued by the United States Department of
§ 730.1 WHAT THESE REGULATIONS                                             Commerce, Bureau of Industry and Security
COVER ....................................................... 1            (BIS) under laws relating to the control of certain
§ 730.2 STATUTORY AUTHORITY ....... 1                                      exports, reexports, and activities. In addition,
                                                                           the EAR implement antiboycott law provisions
§ 730.3 DUAL USE EXPORTS ................. 1                               requiring regulations to prohibit specified
§ 730.4 OTHER CONTROL AGENCIES                                             conduct by United States persons that has the
AND DEPARTMENTS .............................. 2                           effect of furthering or supporting boycotts
                                                                           fostered or imposed by a country against a
§ 730.5 COVERAGE OF MORE THAN                                              country friendly to United States. Supplement
EXPORTS ................................................... 2              No. 1 to part 730 lists the control numbers
§ 730.6 CONTROL PURPOSES ................ 3                                assigned to information collection requirements
                                                                           under the EAR by the Office of Management and
§ 730.7 LICENSE REQUIREMENTS AND                                           Budget pursuant to the Paperwork Reduction Act
EXCEPTIONS ............................................ 3                  of 1995.
§ 730.8 HOW TO PROCEED AND WHERE
TO GET HELP ........................................... 3 
                                                                               § 730.2 STATUTORY AUTHORITY
§ 730.9 ORGANIZATION OF THE
BUREAU OF INDUSTRY AND                                                     The EAR have been designed primarily to
SECURITY ................................................. 5               implement the Export Administration Act of
                                                                           1979, as amended, 50 U.S.C. app. 2401-2420
§ 730.10 ADVISORY INFORMATION .... 6 
                                                                           (EAA).       There are numerous other legal
SUPPLEMENT NO. 1 TO PART 730 -                                             authorities underlying the EAR. These are listed
INFORMATION COLLECTION                                                     in the Federal Register documents promulgating
REQUIREMENTS UNDER THE                                                     the EAR and at the beginning of each part of the
PAPERWORK REDUCTION ACT: OMB                                               EAR in the Code of Federal Regulations (CFR).
CONTROL NUMBERS ............................. 1                            From time to time, the President has exercised
                                                                           authority under the International Emergency
SUPPLEMENT NO. 2 TO PART 730 -                                             Economic Powers Act with respect to the EAR
TECHNICAL ADVISORY COMMITTEES                                              (50 U.S.C. 1701-1706 (IEEPA)). The EAA is
..................................................................... 1    not permanent legislation, and when it has lapsed,
                                                                           Presidential executive orders under IEEPA have
SUPPLEMENT NO. 3 TO PART 730 -
                                                                           directed and authorized the continuation in force
OTHER U.S. GOVERNMENT                                                      of the EAR.
DEPARTMENTS AND AGENCIES WITH
EXPORT CONTROL RESPONSIBILITIES                                                    § 730.3 DUAL USE EXPORTS
..................................................................... 1 
                                                                           The convenient term “dual use” is sometimes
 § 730.1 WHAT THESE REGULATIONS                                            used to distinguish the types of items covered by
                                                                           the EAR from those that are covered by the
                            COVER
                                                                           regulations of certain other U.S. government
                                                                           departments and agencies with export licensing
In this part, references to the Export
                                                                           responsibilities. In general, the term dual use
Administration Regulations (EAR) are references

Export Administration Regulations                       Bureau of Industry and Security                           July 11, 2011
General Information                                                                              Part 730–page 2

serves to distinguish EAR-controlled items that            transactions outside of the United States, or apply
can be used both in military and other strategic           to activities other than exports.
uses (e.g.,           nuclear) and commercial
applications. In general, the term dual use                                    (a) Reexports
serves to distinguish EAR-controlled items that
can be used both in military and other strategic           Commodities, software, and technology that have
uses and in civil applications from those that are         been exported from the United States are
weapons and military related use or design and             generally subject to the EAR with respect to
subject to the controls of the Department of State         reexport. Many such reexports, however, may
or subject to the nuclear related controls of the          go to many destinations without a license or will
Department of Energy or the Nuclear Regulatory             qualify for an exception from licensing
Commission. Note, however, that although the               requirements.
short-hand term dual use may be employed to
refer to the entire scope of the EAR, the EAR also                         (b) Foreign products
apply to some items that have solely civil uses.
                                                           In some cases, authorization to export technology
                                                           from the United States will be subject to
§ 730.4 OTHER CONTROL AGENCIES                             assurances that items produced abroad that are
         AND DEPARTMENTS                                   the direct product of that technology will not be
                                                           exported to certain destinations without
In addition to the departments and agencies                authorization from BIS.
mentioned in §730.3 of this part, other
departments and agencies have jurisdiction over                            (c) Scope of “exports”
certain narrower classes of exports and reexports.
These include the Department of Treasury's                 Certain actions that you might not regard as an
Office of Foreign Assets Control (OFAC), which             “export” in other contexts do constitute an export
administers controls against certain countries that        subject to the EAR. The release of technology
are the object of sanctions affecting not only             to a foreign national in the United States through
exports and reexports, but also imports and                such means as demonstration or oral briefing is
financial dealings.     For your convenience,              deemed an export. Other examples of exports
Supplement No. 3 to part 730 identifies other              under the EAR include the return of foreign
departments and agencies with regulatory                   equipment to its country of origin after repair in
jurisdiction over certain types of exports and             the United States, shipments from a U.S. foreign
reexports. This is not a comprehensive list, and           trade zone, and the electronic transmission of
the brief descriptions are only generally                  non-public data that will be received abroad.
indicative of the types of controls administered
and/or enforced by each agency.                                           (d) U.S. person activities

                                                           To counter the proliferation of weapons of mass
 § 730.5 COVERAGE OF MORE THAN                             destruction, the EAR restrict the involvement of
             EXPORTS                                       “United States persons” anywhere in the world in
                                                           exports of foreign-origin items, or in providing
The core of the export control provisions of the           services or support, that may contribute to such
EAR concerns exports from the United States.               proliferation.
You will find, however, that some provisions
give broad meaning to the term “export”, apply to

Export Administration Regulations       Bureau of Industry and Security                             July 11, 2011
General Information                                                                            Part 730–page 3

      § 730.6 CONTROL PURPOSES
                                                            The Export Administration Regulations (EAR)
The export control provisions of the EAR are                are structured in a logical manner. In dealing
intended to serve the national security, foreign            with the EAR you may find it helpful to be aware
policy, nonproliferation, and short supply                  of the overall organization of these regulations.
interests of the United States and, in some cases,          In order to determine what the rules are and what
to carry out its international obligations. Some            you need to do, review the titles and the
controls are designed to restrict access to dual use        introductory sections of the parts of the EAR.
items by countries or persons that might apply
such items to uses inimical to U.S. interests.              (1) How do you go about determining your
These include controls designed to stem the                 obligations under the EAR? Part 732 of the
proliferation of weapons of mass destruction and            EAR provides steps you may follow to determine
controls designed to limit the military and                 your obligations under the EAR. You will find
terrorism support capability of certain countries.          guidance to enable you to tell whether or not your
The effectiveness of many of the controls under             transaction is subject to the EAR and, if it is,
the EAR is enhanced by their being maintained as            whether it qualifies for a License Exception or
part of       multilateral control arrangements.            must be authorized through issuance of a license.
Multilateral export control cooperation is sought
through arrangements such as the Nuclear                    (2) Are your items or activities subject to the
Suppliers Group, the Australia Group, and the               EAR at all? Part 734 of the EAR defines the
Missile Technology Control Regime. The EAR                  items and activities that are subject to the EAR.
also include some export controls to protect the            Note that the definition of “items subject to the
United States from the adverse impact of the                EAR” includes, but is not limited to, items listed
unrestricted export of commodities in short                 on the Commerce Control List in part 774 of the
supply.                                                     EAR.

                                                            (3) If subject to the EAR, what do the EAR
  § 730.7 LICENSE REQUIREMENTS                              require? Part 736 of the EAR lists all the
           AND EXCEPTIONS                                   prohibitions that are contained in the EAR.
                                                            Note that certain prohibitions (General
A relatively small percentage of exports and                Prohibitions One through Three) apply to items
reexports subject to the EAR require an                     as indicated on the CCL, and others (General
application to BIS for a license. Many items are            Prohibitions Four through Ten) prohibit certain
not on the Commerce Control List (CCL)                      activities and apply to all items subject to the
(Supplement No. 1 to §774.1 of the EAR), or, if             EAR unless otherwise indicated.
on the CCL, require a license to only a limited
number of countries. Other transactions may be              (4) Do you need a license for your item or
covered by one or more of the License                       activity? What policies will BIS apply if you
Exceptions in the EAR. In such cases no                     do need to submit license application? The
application need be made to BIS.                            EAR have four principal ways of describing
                                                            license requirements:

    § 730.8 HOW TO PROCEED AND                                 (i) The EAR may require a license to a
                                                            country if your item is listed on the CCL and the
         WHERE TO GET HELP
                                                            Country Chart in part 738 of the EAR tells that a
                                                            license is required to that country. Virtually all
        (a) How the EAR are organized

Export Administration Regulations        Bureau of Industry and Security                          July 11, 2011
General Information                                                                           Part 730–page 4

Export Control Classification Numbers (ECCN)               (5) How do you file a license application and
on the CCL are covered by the Country Chart in             what will happen to the application once you
part 738 of the EAR. That part identifies the              do file it? What if you need authorization for
limited number of entries that are not included on         multiple transactions? Parts 748 and 750 of
the Chart. These ECCNs will state the specific             the EAR provide information on license
countries that require a license or refer you to a         submission and processing. Part 752 of the
self-contained section, i.e., Short Supply in part         EAR provides for a Special Comprehensive
754 of the EAR, or Embargoes in part 746 of the            License that authorizes multiple transactions. If
EAR. If a license is required, you should                  your application is denied, part 756 of the EAR
consult part 740 of the EAR which describes the            provides rules for filing appeals.
License Exception that may be available for
items on the CCL. Part 742 of the EAR                      (6) How do you clear shipments with the U.S.
describes the licensing policies that BIS will             Customs Service? Part 758 of the EAR
apply in reviewing an application you file. Note           describes the requirements for clearance of
that part 754 of the EAR on short supply controls          exports.
and part 746 on embargoes are self-contained
parts that include the available exceptions and            (7) Where do you find the rules on restrictive
licensing policy.                                          trade practices and boycotts? Part 760 of the
                                                           EAR deals with restrictive trade practices and
   (ii) A license requirement may be based on              boycotts.
the end-use or end-user in a transaction, primarily
for proliferation reasons. Part 744 of the EAR             (8) Where are the rules on recordkeeping
describes such requirements and relevant                   and enforcement? Part 762 of the EAR sets out
licensing policies and includes both restrictions          your recordkeeping requirements, and parts 764
on items and restrictions on the activities of U.S.        and 766 of the EAR deal with violations and
persons.                                                   enforcement proceedings.

  (iii) A license is required for virtually all            (9) What is the effect of foreign availability?
exports to embargoed destinations, such as Cuba.           Part 768 of the EAR provides rules for
Part 746 of the EAR describes all the licensing            determining foreign availability of items subject
requirements, license review policies and License          to controls.
Exceptions that apply to such destinations. If             (10) Do the EAR provide definitions and
your transaction involves one of these countries,          interpretations? Part 770 of the EAR contains
you should first look at this part. This part also         interpretations and part 772 of the EAR lists
describes controls that may be maintained under            definitions used.
the EAR to implement UN sanctions.
                                                                   (b) Why the EAR are so detailed
  (iv) In addition, under §§736.2(b)(9) and (10)
of the EAR, you may not engage in a transaction            Some people will find the great length of the
knowing a violation is about to occur or violate           EAR and their extensive use of technical terms
any orders, terms, and conditions under the EAR.           intimidating. BIS believes, however, that such
Part 764 of the EAR describes prohibited                   detail and precision can and does serve the
transactions with a person denied export                   interests of the public. The detailed listing of
privileges or activity that violates the terms or          technical parameters in the CCL establishes
conditions of a denial order.                              precise, objective, criteria. This should, in most
                                                           cases, enable you to ascertain the appropriate

Export Administration Regulations       Bureau of Industry and Security                          July 11, 2011
General Information                                                                             Part 730–page 5

control status. Broader, more subjective criteria             2302 Martin St., Suite 330
would leave exporters and reexporters more                    Irvine, California 92612
dependent upon interpretations and rulings by                 Tel: (949) 660-0144
BIS officials. Moreover, much of the detail in                Fax: (949) 660-9347
the CCL is derived from multilaterally adopted
lists, and the specificity serves to enhance the                    -and-
uniformity and effectiveness of international
control practices and to promote a “level playing             Bureau of Industry and Security
field”.    The detailed presentation of such                  Western Regional Office
elements as licensing and export clearance                    Northern California Branch
procedures enables you to find in one place what              U.S. Department of Commerce
you need to know to comply with pertinent                     160 W. Santa Clara Street
requirements. Of special importance is the                    Suite 725
detailed listing of License Exception criteria, as            San Jose, CA 95113
these will enable you to determine quickly, and               Tel: (408) 998-8806
with confidence, that you may proceed with a                  Fax: (408) 998-8677
transaction without delay. Finally, some of the
detail results from the need to draft the EAR with
care in order to avoid loop-holes and to permit                § 730.9 ORGANIZATION OF THE
effective enforcement.                                           BUREAU OF INDUSTRY AND
                                                                         SECURITY
                (c) Where to get help
                                                           The head of the Bureau of Industry and Security
Throughout the EAR you will find information               is the Under Secretary for Industry and Security.
on offices you can contact for various purposes            The Under Secretary is assisted by a Deputy
and types of information. General information              Under Secretary for Industry and Security, the
including assistance in understanding the EAR,             Assistant Secretary for Export Administration,
information on how to obtain forms, electronic             the Assistant Secretary for Export Enforcement,
services, publications, and information on                 the Director of Administration, the Director of
training programs offered by BIS, is available             the Office of Congressional and Public Affairs,
from the Office of Export Services at the                  and the Chief Information Officer.            The
following locations:                                       functions and authorities of the Under Secretary
                                                           are described in the Department’s Organizational
  Outreach & Educational Services Division                 Order 10-16. The Department’s organizational
  U.S. Department of Commerce                              and administrative orders are available via Office
  14th and Pennsylvania Avenue, N.W.,                      of Management and Organization’s Web page on
  Room H1099D                                              the      Department’s        Web       site     at
  Washington, DC 20230                                     http://www.osec.doc.gov/omo/DMPHome.htm.
  Tel: (202) 482-4811                                      The principal functions of the Bureau that
  Fax: (202) 482-2927                                      directly affect the public are carried out by two
                                                           units:     Export Administration and Export
        -and-                                              Enforcement.
  Bureau of Industry and Security                           (a) Export Administration is headed by the
  Western Regional Office                                  Assistant Secretary for Export Administration,
  U.S. Department of Commerce                              who is assisted by a Deputy Assistant Secretary.

Export Administration Regulations       Bureau of Industry and Security                           July 11, 2011
General Information                                                                            Part 730–page 6

Its substantive work is carried out by six                    (c) BIS is also assisted in its work by six
sub-units: the Office of Nonproliferation and              technical advisory committees. The procedures
Treaty Compliance, the Office of National                  and criteria for establishing and operating the
Security and Technology Transfer Controls, the             technical advisory committees is at supplement
Office of Exporter Services, the Operating                 No. 2 to this part. Information about the specific
Committee, the Office of Strategic Industries and          roles of each committee, meeting schedules, and
Economic Security and the Office of Technology             membership selection is available on BIS’s Web
Evaluation. The functions of the Operating                 site at http://tac.bis.doc.gov/.
Committee are described in §750.4(f)(1) of the
EAR. The roles of the other units are
described    on     BIS’s     Web      site     at           § 730.10 ADVISORY INFORMATION
http://www.bis.doc.gov/about/programoffices.ht
m                                                          The general information in this part is just
                                                           that—general. To achieve brevity, so as to give
  (b) Export Enforcement is headed by the                  you a quick overview, the information in this part
Assistant Secretary for Export Enforcement who             is selective, incomplete, and not expressed with
is assisted by a Deputy Assistant Secretary. Its           regulatory precision. The controlling language
substantive work is carried out by three sub-units:        is the language of succeeding parts of the EAR
the Office of Export Enforcement, the Office of            and of any other laws or regulations referred to or
Enforcement Analysis and the Office of                     applicable. The content of this part is not to be
Antiboycott Compliance. The roles of these                 construed as modifying or interpreting any other
units are described on BIS’s Web site at                   language, or as in any way limiting the authority
http://www.bis.doc.gov/about/programoffices.ht             of BIS, any of its components, or any other
m                                                          government department or agency. You should
                                                           not take any action based solely on what you read
                                                           in this part.




Export Administration Regulations       Bureau of Industry and Security                           July 11, 2011
General Information                                                          Supplement 1 to Part 730–page 1


      SUPPLEMENT NO. 1 TO PART 730 - INFORMATION COLLECTION
 REQUIREMENTS UNDER THE PAPERWORK REDUCTION ACT: OMB CONTROL
                            NUMBERS

This Supplement lists the control numbers assigned to the information collection requirements for the
Bureau of Industry and Security by the Office of Management and Budget (OMB), pursuant to the
Paperwork Reduction Act of 1995. This Supplement complies with the requirements of section
3506(c)(1)(B)(i) of the Paperwork Reduction Act requiring agencies to display current control numbers
assigned by the Director of OMB for each agency information collection requirement.

  Collection                                  Title                               Reference in the EAR
   number
0694-0004         Foreign Availability Procedures and Criteria                    part 768
0694-0009         Approval of Triangular Transactions Involving Commodities       §748.10(e)
                  Covered by a U.S. Import Certificate
0694-0012         Report of Requests for Restrictive Trade Practice or Boycott–   part 760 and §762.2(b)
                  Single or Multiple Transactions
0694-0013         Computers and Related Equipment EAR Supplement 2 to             part 774
                  Part 748
0694-0016         Delivery Verification Certificate                               §§748.13 and 762.2(b)
0694-0017         International Import Certificate                                §748.10
0694-0021         Statement by Ultimate Consignee and Purchaser                   §§748.11 and 762.2(b)
0694-0026         Short Supply Regulations - Petroleum Products                   §754.3
0694-0047         Technology Letter of Explanation                                Supplement No. 2 to
                                                                                  part 748, paragraph
                                                                                  (o)(2)
0694-0058         Procedure for Voluntary Self-Disclosure of Violations           §§762.2(b) and 764.5
0694-0073         Export Controls of High Performance Computers                   Supplement No. 2 to
                                                                                  part 748, paragraph
                                                                                  (c)(2), and §762.2(b)
0694-0088         Simplified Network Application Processing+ System               parts 746, 748, and 752;
                  (SNAP+) and the Multipurpose Export License Application         §762.2(b)
0694-0089         Special Comprehensive License Procedure                         part 752 and §762.2(b)
0694-0093         Import Certificates And End-User Certificates                   §§ 748.9, 748.10,
                                                                                  762.5(d), 762.6,
                                                                                  764.2(g)(2)
0694-0096         Five Year Records Retention Period                              part 760, §762.6(a)
0694-0100         Requests for Appointment of Technical Advisory Committee        Supplement No. 1 to
                                                                                  part 730
0694-0102         Registration Of U.S. Agricultural Commodities For               §§754.6 and 754.7
                  Exemption From Short Supply Limitations On Export”, and
                  “Petitions For The Imposition Of Monitoring Or Controls On
                  Recyclable Metallic matrials; Public Hearings
0694-0107         National Defense Authorization Act (NDAA)                       §§740.7, 742.12


Export Administration Regulations      Bureau of Industry and Security                         July 11, 2011
General Information                                                             Supplement 1 to Part 730–page 2


  Collection                                  Title                                  Reference in the EAR
   number
0694-0122         Licensing Responsibilities and Enforcement                        part 758, and §748.4
0694-0125         BIS Seminar Evaluation                                            N/A
0694-0126         Export License Services - Transfer of License Ownership,          §750.9
                  Requests for a Duplicate License
0694-0129         Export and Reexport Controls For Iraq                             § 732.3, 738, 744.18,
                                                                                    746.3(b)(1), 747, 750,
                                                                                    758, 762, 772, 774
0694-0132         Voluntary Self-Disclosure of Antiboycott Violations               § 764.8
0694-0134         Procedure for parties on the Entity List to Request Removal       § 744.16
                  or Modification of their Listing
0694-0137         License Exceptions and Exclusions                                 § 744.16, Supplement
                                                                                    No. 2 to part 734,
                                                                                    §§ 740.3(d), 740.4(c),
                                                                                    740.9(a)(2)(viii)(B),
                                                                                    740.9(c), 740.13(e),
                                                                                    740.12(b)(7), 740.17,
                                                                                    740.18, Supp. No. 2 to
                                                                                    part 740, §§ 742.15,
                                                                                    743.1, 743.3, 754.2,
                                                                                    754.4, 762.2(b) and
                                                                                    Supplement No. 1 to
                                                                                    part 774.
0607-0152         Automated Export System (AES) Program                             §§ 740.1(d),
                                                                                    740.3(a)(3), 752.7(b),
                                                                                    752.15(a)
                                                                                    754.2(h), 754.4(c),
                                                                                    758.1, 758.2, and 758.3
                                                                                    of the EAR




Export Administration Regulations      Bureau of Industry and Security                            July 11, 2011
General Information                                                          Supplement No. 2 to Part 730–page 1


    SUPPLEMENT NO. 2 TO PART 730 - TECHNICAL ADVISORY COMMITTEES

                   (a) Purpose                                 14th Street and Pennsylvania Ave., NW.
                                                               Room 2705
The purpose of this Supplement is to describe the              Washington, DC 20230
procedures and criteria for the establishment and
operation of Technical Advisory Committees.                 The request shall include:

      (b) Technical advisory committees                       (i) A description of the articles, materials, or
                                                            supplies including technology and software, in
Any producer of articles, materials, or supplies,           terms of a clear, cohesive grouping (citing the
including technology, software, and other                   applicable Export Control Classification
information, that are subject to export controls, or        Numbers where practical);
are being considered for such controls because of
their significance to the national security of the            (ii) A statement of the reasons for requesting
United States, may request the Secretary of                 the appointment of a TAC; and
Commerce to establish a technical advisory
committee, under the provisions of section 5(h)               (iii) Any information in support of any
of the Export Administration Act of 1979, as                contention that may be made that the request
amended (EAA) to advise and assist the                      meets the criteria described in paragraph (b)(2) of
Department of Commerce and other appropriate                this Supplement.
U.S. Government agencies or officials with
respect to questions involving technical matters;           (2)       Consideration of request for
worldwide availability and actual utilization of            establishment of a TAC. The Department of
production technology; licensing procedures that            Commerce will review all requests for the
affect the level of export controls applicable to a         establishment of a TAC to determine if the
clearly defined grouping of articles, materials, or         following criteria are met:
supplies, including technology, software, or other
information; and exports and reexports subject to             (i) That a substantial segment of the industry
all controls that the United States maintains               producing the specified articles, materials, or
including proposed revisions of any such                    supplies including technology desires such a
controls. If producers of articles, materials, or           committee; and
supplies, including technology, software, and
other information, that are subject to export                 (ii) That the evaluation of such articles,
controls because of their significance to the               materials, or supplies including technology and
national security of the United States, wish a              software for export control purposes is difficult
trade association or other representative to                because of questions involving technical matters,
submit a written request on their behalf for the            worldwide availability and actual utilization of
appointment to a TAC, such request shall be                 production and software technology, or licensing
submitted in accordance with paragraph (b)(4) of            procedures.
this Supplement.
                                                            (3) Requests by a substantial segment of an
(1) Form and substance of requests. Each                    industry. In determining whether or not a
request for the appointment of a TAC shall be               substantial segment of any industry has requested
submitted in writing to:                                    the appointment of a TAC, the Department of
  Assistant Secretary for Export Administration             Commerce will consider:

Export Administration Regulations        Bureau of Industry and Security                           July 11, 2011
General Information                                                            Supplement No. 2 to Part 730–page 2


(i) The number of persons or firms requesting                establishment of a TAC should include the
the establishment of a TAC for a particular                  following information:
grouping of commodities, software and
technology in relation to the total number of U.S.             (i) The total number of firms in the particular
producers of such items; and                                 industry;

  (ii) The volume of annual production by such                 (ii) The total number of firms in the industry
persons or firms of each item in the grouping in             that have authorized the trade association or other
relation to the total U.S. production. Generally,            representative to act in their behalf in this matter;
a substantial segment of an industry (for purposes
of this Supplement) shall consist of:                          (iii) The approximate amount of total U.S.
                                                             annual production by dollar value of the items
       (A) Not less than 30 percent of the total             concerned produced by those firms that have
number of U.S. producers of the items concerned;             authorized the trade association or other
or                                                           representative to act in their behalf; and

        (B) Three or more U.S. producers who                   (iv) A description of the method by which
produce a combined total of not less than 30                 authorization to act on behalf of these producers
percent of the total U.S. annual production, by              was obtained.
dollar value of the items concerned; or
                                                             (5) Nominations for membership on TACs.
         (C) Not less than 20 percent of the total           When the Department of Commerce determines
number of U.S. producers of the items concerned,             that the establishment of a TAC is warranted, it
provided that the total of their annual production           will request nominations for membership on the
thereof is not less than 20 percent of the total U.S.        committee among the producers of the items and
annual production, by dollar value.                          from any other sources that may be able to
                                                             suggest well-qualified nominees.
  (iii) If it is determined that a substantial
segment of the industry concerned has requested              (6)     Selection of industry members of
the establishment of a TAC concerning a specific             committee. Industry members of a TAC will be
grouping of items that the Department of                     selected by the Department of Commerce from a
Commerce determines difficult to evaluate for                list of the nominees who have indicated their
export control purposes, BIS will establish and              availability for service on the committee. To the
use the TAC requested.                                       extent feasible, the Department of Commerce
                                                             will select a committee balanced to represent all
(4) Requests from trade associations or other                significant facets of the industry involved, taking
representatives.       Requests from trade                   into consideration such factors as the size of the
associations or other representatives of U.S.                firms, their geographical distribution, and their
producers for the establishment of a TAC must                product lines. No industry representative shall
comply with the provisions of paragraphs (b)(1)              serve on a TAC for more than four consecutive
through (3) of this Supplement. In addition, in              years. The membership of a member who is
order to assist BIS in determining whether the               absent from four consecutive meetings shall be
criteria described in paragraph (b)(3) of this               terminated.
Supplement have been met, a trade association or
other representative submitting a request for the            (7)  Government members.     Government
                                                             members of a TAC will be selected by the

Export Administration Regulations         Bureau of Industry and Security                            July 11, 2011
General Information                                                        Supplement No. 2 to Part 730–page 3


Department of Commerce from the agencies                   (viii) The estimated number and frequency of
having an interest in the subject matter                 committee meetings;
concerned.                                                 (ix) The committee's termination date, if less
                                                         than two years from the date of the committee's
(8)      Invitation to serve on committee.               establishment; and
Invitations to serve on a TAC will be sent by
letter to the selected nominees.                            (x) The date the charter is filed.

(9) Election of Chair. The Chair of each TAC                               (d) Meetings
shall be elected by a vote of the majority of the
members of the committee present and voting.             (1) Each TAC established under the provisions
                                                         of the EAA and paragraph (b) of this Supplement
                   (c) Charter                           shall meet at least once every three months at the
                                                         call of its Chair unless it is specifically
(1) No TAC established pursuant to this                  determined by the Chair, in consultation with
Supplement shall meet or take any action until an        other members of the committee, that a particular
advisory committee charter has been filed with           meeting is not necessary.
the Assistant Secretary for Export Administration
of the Department of Commerce and with the               (2) No TAC may meet except at the call of its
standing committees of the Senate and of the             Chair.
House of Representatives having legislative
jurisdiction over the Department. Such charter           (3) Each meeting of a TAC shall be conducted
shall contain the following information:                 in accordance with an agenda approved by a
                                                         designated Federal government employee.
  (i) The committee's official designation;
                                                         (4) No TAC shall conduct a meeting in the
  (ii) The committee's objectives and the scope          absence of a designated Federal government
of its activities;                                       employee who shall be authorized to adjourn any
                                                         advisory committee meeting, whenever the
  (iii) The period of time necessary for the             Federal government employee determines
committee to carry out its purposes;                     adjournment to be in the public interest.

  (iv) The agency or official to whom the                                (e) Public notice
committee reports;
                                                         Notice to the public of each meeting of a TAC
  (v) The agency responsible for providing the           will be issued at least 20 days in advance and will
necessary support for the committee;                     be published in the Federal Register. The notice
                                                         will include the time and place of the meeting and
  (vi) A description of the duties for which the         the agenda.
committee is responsible, and, if such duties are
not solely advisory, a specification of the                   (f) Public attendance and participation
authority for such functions;
                                                         (1) Any member of the public who wishes to do
  (vii) The estimated annual operating costs in          so may file a written statement with any TAC
dollars and years for such committee;                    before or after any meeting of a committee.


Export Administration Regulations     Bureau of Industry and Security                            July 11, 2011
General Information                                                        Supplement No. 2 to Part 730–page 4


(2) A request for an opportunity to deliver an            Department of Commerce that are contained in
oral statement relevant to matters on the agenda          15 CFR part 4, Subtitle A, the records, reports,
of a meeting of a TAC will be granted to the              transcripts, minutes, appendices, working papers,
extent that the time available for the meeting            draft, studies, agenda, or other documents that
permits. A committee may establish procedures             were made available to or prepared for or by each
requiring such persons to obtain advance                  TAC will be available for public inspection and
approval for such participation.                          copying.

(3) Attendance at meetings of TACs will be                (2) Each TAC will prepare once each year a
open to the public unless it is determined                report describing its membership, functions,
pursuant to §10(d) of the Federal Advisory                activities, and such related matters as would be
Committee Act to be necessary to close all, or            informative to the public consistent with the
some portion, of the meeting to the public. A             policy of §552(b) of Title 5, U.S.C.
determination that a meeting or portion thereof be
closed to the public may be made if all or a              (3)(i) Requests for records should be addressed
specific portion of a meeting of a TAC is                 to:
concerned with matters described in §552(b) of
Title 5, U.S.C.                                                Bureau of Industry and Security
                                                               Freedom of Information
(4) Participation by members of the public in                  Records Inspection Facility
open TAC meetings or questioning of committee                  U.S. Department of Commerce
members or other participants shall not be                     Room 4513
permitted except in accordance with procedures                 Washington, DC 20230
established by the committee.                                  Telephone (202) 482-2593

(5) Every effort will be made to accommodate                (ii) Rules concerning the use of the Records
all members of the public who wish to attend.             Inspection Facility are contained in 15 CFR part
                                                          4, Subtitle A, or may be obtained from this
                   (g) Minutes                            facility.

(1) Detailed minutes of each meeting of each                             (i) Compensation
TAC will be kept and will contain a record of the
persons present, a complete and accurate                  If the Department of Commerce deems it
description of the matters discussed and                  appropriate, a member of a TAC may be
conclusions reached, and copies of all reports            reimbursed for travel, subsistence, and other
received, issued, or approved by the TAC.                 necessary expenses incurred in connection with
                                                          the member's duties.
(2) The accuracy of all the minutes will be
certified to by the TAC Chair.                               (j) Scope of advisory committee functions

                   (h) Records                            All TACs are limited to the functions described
                                                          in their charters.
(1) Subject to §552 of Title 5, U.S.C. and
Department of Commerce Administrative Order
205-12, “Public Information,” and “Public                            (k) Duration of committees
Information” regulations issued by the

Export Administration Regulations      Bureau of Industry and Security                           July 11, 2011
General Information                                                        Supplement No. 2 to Part 730–page 5


Each TAC will terminate at the end of two years           (2) Whenever the Department of Commerce
from the date the committee was established or            desires the advice or assistance of a particular
two years from the effective date of its most             segment of an industry with respect to any export
recent     extension,    whichever   is     later.        control problem for which the service of a TAC,
Committees may be continued only for                      as described in paragraph (b) of this Supplement
successive two-year periods by appropriate                is either unavailable or impracticable, an
action taken by the authorized officer of the             advisory committee may be established pursuant
Department of Commerce prior to the date on               to the provisions of section 9 of the Federal
which such advisory committee would otherwise             Advisory Committee Act. Such committees will
terminate. TACs may be extended or terminated             be subject to the requirements of the Federal
only after consultation with the committee.               Advisory Committee Act, OMB Circular A-63
                                                          (Revision of March 1974), “Advisory Committee
               (l) Miscellaneous                          Management,” Department of Commerce
                                                          Administrative     Order     205-12,      “Public
(1)   TACs established in accordance with                 Information,” and any other applicable
paragraph (b) of this supplement must conform to          Department of Commerce regulations or
the provisions of the Federal Advisory                    procedures affecting the establishment or
Committee Act (Public Law 92-463), Office of              operation of advisory committees.
Management and Budget Circular A-63
(Revision of March 1974), “Advisory Committee             (3)     Nothing in the provisions of this
Management,” Department of Commerce                       Supplement shall be construed to restrict in any
Administrative      Order    205-12,     “Public          manner the right of any person or firm to discuss
Information,” the applicable provisions of the            any export control matter with the Department of
EAA, and any other applicable Department of               Commerce or to offer advice or information on
Commerce regulations or procedures affecting              export control matters. Similarly, nothing in
the establishment or operation of advisory                these provisions shall be construed to restrict the
committees.                                               Department of Commerce in consulting any
                                                          person or firm relative to any export control
                                                          matter.




Export Administration Regulations      Bureau of Industry and Security                           July 11, 2011
General Information                                                      Supplement No. 3 to Part 730 – page 1


 SUPPLEMENT NO. 3 TO PART 730 - OTHER U.S. GOVERNMENT DEPARTMENTS
       AND AGENCIES WITH EXPORT CONTROL RESPONSIBILITIES

Note: The departments and agencies identified with an asterisk control exports for foreign policy or
national security reasons and, in certain cases, such controls may overlap with the controls described in the
EAR (see part 734 of the EAR).


        DEFENSE SERVICES AND DEFENSE ARTICLES
             * Department of State
                Directorate of Defense Trade Controls
                     Tel. (202) 663-2700
                     Fax: (202) 261-8695
             22 CFR parts 120 through 130

        DRUGS, CHEMICALS AND PRECURSORS
             Chemicals: Drug Enforcement Administration
             Office of Diversion Control
             Import-Export Unit
                     Tel. (202) 307-4916
                     Fax: (202) 307-4702
                     Internet: http://deadiversion.usdoj.gov/imp_exp/index.html
             21 CFR parts 1311 through 1313

                 Controlled Substances: Drug Enforcement Administration
                 Office of Diversion Control
                 Import-Export Unit
                         Tel. (202) 307-7182 or (202) 307-7181
                         Fax: (202) 307-7503
                         Internet: http://deadiversion.usdoj.gov/imp_exp/index.html
                 21 CFR 1311 through 1313

                 Drugs and Biologics: Food and Drug Administration
                 Import/Export
                        Tel. (301) 594-3150
                        Fax: (301) 594-0165
                        21 U.S.C 301 et seq.

                 Investigational drugs permitted: Food and Drug Administration
                 International Affairs
                          Tel. (301) 443-4480
                          Fax: (301) 443-0235
                 21 CFR 312.1106




Export Administration Regulations      Bureau of Industry and Security                             July 11, 2011
General Information                                                   Supplement No. 3 to Part 730 – page 2


        FISH AND WILDLIFE CONTROLS; ENDANGERED SPECIES
              Department of the Interior
              Chief Office of Management Authority
                     Tel. (703) 358-2093
                     Fax: (703) 358-2280
              50 CFR 17.21, 17.22, 17.31, 17.32

        FOREIGN ASSETS AND TRANSACTIONS CONTROLS
              * Department of Treasury
              Office of Foreign Assets Control, Licensing
                      Tel. (202) 622-2480
                      Fax: (202) 622-1657
              31 CFR parts 500 through 590

        MEDICAL DEVICES
             Food and Drug Administration
             Office of Compliance
                     Tel. (301) 594-4699
                     Fax: (301) 594-4715
             21 U.S.C. 301 et seq.

        NATURAL GAS AND ELECTRIC POWER
             Department of Energy
             Office of Fuels Programs
                     Tel. (202) 586-9482
                     Fax: (202) 586-6050
             10 CFR 205.300 through 205.379 and 590

        NUCLEAR MATERIALS AND EQUIPMENT
             * Nuclear Regulatory Commission
             Office of International Programs
                     Tel. (301) 415-2344
                     Fax: (301) 415-2395
             10 CFR part 110

     NUCLEAR TECHNOLOGY; TECHNICAL DATA FOR NUCLEAR WEAPONS/SPECIAL
NUCLEAR MATERIALS
          * Department of Energy
          Office of Export Control Policy & Cooperation (NA-24)
                  Tel. (202) 586- 2331
                  Fax: (202) 586-1348
          10 CFR part 810

        OCEAN FREIGHT FORWARDERS
             Federal Maritime Commission

Export Administration Regulations   Bureau of Industry and Security                             July 11, 2011
General Information                                                    Supplement No. 3 to Part 730 – page 3


                 Office of Freight Forwarders
                         Tel. (202) 523-5843
                         Fax: (202) 523-5830
                 46 CFR part 510

        PATENT FILING DATA SENT ABROAD
             * Department of Commerce
             Patent and Trademark Office
             Licensing and Review
                     Tel. (703) 308-1722
                     Fax: (703) 305-3603, 3604
             37 CFR part 5

        U.S. FLAGGED OR U.S. MANUFACTURED VESSELS OVER 1,000 GROSS TONS
               U.S. Maritime Administration
               Division of Vessel Transfer and Disposal
                       Tel. (202) 366-5821
                       Fax: (202) 366-3889
               46 CFR part 221




Export Administration Regulations    Bureau of Industry and Security                             July 11, 2011
Steps for Using the EAR                                                                                     Part 732 - page 1


Table	of	Contents	                                                         (i) The scope of the EAR (part 734 of the
                                                                          EAR);
§ 732.1 STEPS OVERVIEW...................... 1 
                                                                            (ii) Each of the general prohibitions (part 736
§ 732.2 STEPS REGARDING SCOPE OF                                          of the EAR);
THE EAR .................................................... 3 
§ 732.3 STEPS REGARDING THE TEN                                            (iii) The License Exceptions (part 740 of the
GENERAL PROHIBITIONS ..................... 5                              EAR); and
§ 732.4 STEPS REGARDING LICENSE                                             (iv) Other requirements such as clearing your
EXCEPTIONS .......................................... 10                  export with the U.S. Customs Service, keeping
§ 732.5 STEPS REGARDING SHIPPER’S                                         records, and completing and documenting license
EXPORT DECLARATION OR                                                     applications.
AUTOMATED EXPORT SYSTEM
                                                                          (2) These steps describe the organization of the
RECORD, DESTINATION CONTROL                                               EAR, the relationship among the provisions of
STATEMENTS, AND RECORDKEEPING                                             the EAR, and the appropriate order for you to
................................................................... 12    consider the various provisions of the EAR.
§ 732.6 STEPS FOR OTHER
REQUIREMENTS.................................... 13                              (b) Facts about your transaction

SUPPLEMENT NO. 1 TO PART 732 –                                            The following five types of facts determine your
DECISION TREE ....................................... 1                   obligations under the EAR and will be of help to
SUPPLEMENT NO. 2 TO PART 732 –                                            you in reviewing these steps:
SUBJECT TO THE EAR? .......................... 1 
                                                                          (1) What is it? What an item is, for export
SUPPLEMENT NO. 3 TO PART 732 - BIS's                                      control purposes, depends on its classification,
“KNOW YOUR CUSTOMER”                                                      which is its place on the Commerce Control List
GUIDANCE AND RED FLAGS ............... 1                                  (see part 774 of the EAR).

                                                                          (2) Where is it going? The country of
           § 732.1 STEPS OVERVIEW                                         ultimate destination for an export or reexport also
                                                                          determines licensing requirements (see parts 738
                    (a)(1) Introduction                                   and 774 of the EAR concerning the Country
                                                                          Chart and the Commerce Control List).
In this part, references to the EAR are references
to 15 CFR chapter VII, subchapter C. This part                            (3)    Who will receive it? The ultimate
is intended to help you determine your                                    end-user of your item cannot be a bad end-user.
obligations under the EAR by listing logical steps                        See General Prohibition Four (Denial Orders) in
in §732.2 through §732.5 of this part that you can                        §736.2(b)(4) and parts 744 and 764 of the EAR
take in reviewing these regulations. A flow                               for a reference to the list of persons you may not
chart describing these steps is contained in                              deal with.
Supplement No. 1 to part 732. By
cross-references to the relevant provisions of the                        (4) What will they do with it? The ultimate
EAR, this part describes the suggested steps for                          end-use of your item cannot be a bad end-use.
you to determine applicability of the following:                          See General Prohibition Five (End-Use
                                                                          End-User) in §736.2(b)(5) and part 744 of the

Export Administration Regulations                     Bureau of Industry and Security                          July 23, 2012
Steps for Using the EAR                                                                        Part 732 - page 2

EAR for general           end-use   and     end-user         Reexport and export from abroad of the
restrictions.                                                foreign-produced direct product of U.S.
                                                             technology and software.
(5) What else do they do? Conduct such as
contracting, financing, and freight forwarding in              (iv)    General Prohibition Four (Denial
support of a proliferation project (as described in          Orders): Engaging in actions prohibited by a
§744.6 of the EAR) may prevent you from                      denial order.
dealing with someone.
                                                               (v)    General Prohibition Five (End-Use
       (c) Are your items and activities                     End-User): Export or reexport to prohibited
            subject to the EAR?                              end-user or end-users.

You should first determine whether your                       (vi)    General Prohibition Six (Embargo):
commodity, software, or technology is subject to             Export or reexport to embargoed destinations.
the EAR (see part 734 of the EAR concerning
scope), and Steps 1 through 6 help you do that.                (vii) General Prohibition Seven (U.S. Person
For exports from the United States, only Steps 1             Proliferation Activity): Support of proliferation
and 2 are relevant. If you already know that                 activities.
your item or activity is subject to the EAR, you
should go on to consider the ten general                       (viii) General Prohibition Eight (In-Transit):
prohibitions in part 736 of the EAR. If your                 In-transit shipments and items to be unladen from
item or activity is not subject to the EAR, you              vessels and aircraft.
have no obligations under the EAR and may skip
the remaining steps.                                           (ix) General Prohibition Nine (Orders, Terms
                                                             and Conditions): Violation of any orders, terms,
(d) Does your item or activity require a license             or conditions.
    under one or more of the ten general
                prohibitions?                                  (x) General Prohibition Ten (Knowledge
                                                             Violation to Occur):           Proceeding with
(1)     Brief summary of the ten general                     transactions with knowledge that a violation has
prohibitions. The general prohibitions are found             occurred or is about to occur.
in part 736 of the EAR and referred to in these
steps.    They consist, very briefly, of the                 (2) Controls on items on the Commerce Control
following:                                                   List (CCL). If your item or activity is subject to
                                                             the EAR, you should determine whether any one
   (i) General Prohibition One (Exports and                  or more of the ten general prohibitions require a
Reexports): Export and reexport of controlled                license for your export, reexport, or activity.
items to listed countries.                                   Steps 7 through 11 refer to classification of your
                                                             item on the Commerce Control List (CCL) (part
  (ii) General Prohibition Two (Parts and                    774 of the EAR) and how to use the Country
Components Reexports): Reexport and export                   Chart (Supplement No. 1 to part 738 of the EAR)
from abroad of foreign-made items incorporating              to determine whether a license is required based
more than a de minimis amount of controlled                  upon the classification of your item. These steps
U.S. content.                                                refer to General Prohibitions One (Exports and
                                                             Reexports), Two (Parts and Components
  (iii)       General    Prohibition  Three                  Reexports), and Three (Foreign-Produced Direct
(Foreign-produced Direct Product Reexports):                 Product Reexports) for all countries except:

Export Administration Regulations         Bureau of Industry and Security                         July 23, 2012
Steps for Using the EAR                                                                     Part 732 - page 3

Cuba, Iran, North Korea, and Syria. For these             the export is from the United States, you should
countries, you may skip Steps 7 through 11 and            review Steps 26 through 28 concerning Shipper's
go directly to Step 12.                                   Export Declarations to be filed with the U.S.
                                                          Customs Service, Destination Control Statements
(3) Controls on activities. Steps 12 through 18           for export control documents and recordkeeping
refer to General Prohibitions Four through Ten.           requirements. If a License Exception is not
Those general prohibitions apply to all items             available, go on to Steps 25 through 29.
subject to the EAR, not merely those items listed
on the CCL in part 774 of the EAR. For                          (f) How do you apply for a license?
example, they refer to the general prohibitions for
persons denied export privileges, prohibited              If you must file a license application, you should
end-uses and end-users, countries subject to a            review the requirements of part 748 of the EAR
comprehensive embargo (e.g., Cuba, Iran, North            as suggested by Step 26. Then you should
Korea and Syria), prohibited activities of U.S.           review Steps 27 through 29 concerning Shipper's
persons in support of proliferation of weapons of         Export Declarations to be filed with the U.S.
mass destruction, prohibited unlading of                  Customs Service, Destination Control Statements
shipments, compliance with orders, terms and              for export control documents, and record keeping
conditions, and activities when a violation has           requirements.
occurred or is about to occur.

(4) General prohibitions. If none of the ten              § 732.2 STEPS REGARDING SCOPE OF
general prohibitions applies, you should skip the                       THE EAR
steps concerning License Exceptions and for
exports from the United States, review Steps 27           Steps 1 through 6 are designed to aid you in
through 29 concerning Shipper's Export                    determining the scope of the EAR. A flow chart
Declarations to be filed with the U.S. Customs            describing these Steps is contained in
Service, Destination Control Statements for               Supplement No. 2 to part 732.
export control documents, and recordkeeping
requirements.                                                (a) Step 1: Items subject to the exclusive
                                                               jurisdiction of another Federal agency
    (e) Is a License Exception available to
       overcome the license requirement?                  This step is relevant for both exports and
                                                          reexports. Determine whether your item is
If you decide by reviewing the CCL in                     subject to the exclusive jurisdiction of another
combination with the Country Chart that a license         Federal Agency as provided in §734.3 of the
is required for your destination, you should              EAR.
determine whether a License Exception will
except you from that requirement. Steps 20                (1) If your item is subject to the exclusive
through 24 help you determine whether a License           jurisdiction of another federal agency, comply
Exception is available. Note that generally               with the regulations of that agency. You need
License Exceptions are not available to overcome          not comply with the EAR and may skip the
General Prohibitions Four through Ten.                    remaining steps.
However, selected License Exceptions for
embargoed destinations are specified in part 746          (2) If your item is not subject to the exclusive
of the EAR and License Exceptions for short               jurisdiction of another federal agency, then
supply controls are specified in part 754 of the          proceed to Step 2 in paragraph (b) of this section.
EAR. If a License Exception is available and

Export Administration Regulations      Bureau of Industry and Security                         July 23, 2012
Steps for Using the EAR                                                                      Part 732 - page 4

        (b) Step 2: Publicly available                    This step is appropriate only for reexporters.
           technology and software                        For an item in a foreign country, you should
                                                          determine whether the item is of U.S.-origin. If
This step is relevant for both exports and                it is of U.S.-origin, skip to Step 7 in §732.3(b) of
reexports. Determine if your technology or                this part. If it is not of U.S.-origin, then proceed
software is publicly available as defined and             to Step 4 in paragraph (d) of this section.
explained at part 734 of the EAR. Supplement
No. 1 to part 734 of the EAR contains several                     (d) Step 4: Foreign-made items
practical examples describing publicly available             incorporating controlled U.S.-origin items
technology and software that are outside the
scope of the EAR.             The examples are            This step is appropriate only for items that are
illustrative, not comprehensive.         Note that        made outside the United States and not currently
encryption software classified under ECCN                 located in the United States.              Special
5D002 on the Commerce Control List (refer to              requirements and restrictions apply to
Supplement No.1 to Part 774 of the EAR) is                foreign-made items that incorporate U.S.-origin
subject to the EAR even if publicly available,            encryption items (see §734.4(a)(2), (b), and (g) of
except for publicly available encryption object           the EAR).
code software classified under ECCN 5D002
when the corresponding source code meets the              (1) Determining whether your foreign made
criteria specified in § 740.13(e) of the EAR.             item is subject to the EAR. Using the guidance
                                                          provided in Supplement No. 2 to part 734 of the
(1) If your technology or software is publicly            EAR, determine whether controlled U.S.-origin
available, and therefore outside the scope of the         items are incorporated into the foreign-made item
EAR, you may proceed with the export or                   and are above the de minimis level set forth in
reexport if you are not a U.S. person subject to          §734.4 of the EAR
General Prohibition Seven. If you are a U.S.
person, go to Step 15 at §732.3(j) of this part. If       (2) If no U.S.-origin controlled items are
you are a U.S. person and General Prohibition             incorporated or if the percentage of incorporated
Seven concerning proliferation activity of U.S.           U.S.-origin controlled items are equal to or below
persons does not apply, then you may proceed              the de minimis level described in § 734.4 of the
with the export or reexport of your publicly              EAR, then the foreign-made item is not subject to
available technology or software. Note that all           the EAR by reason of the de minimis rules, and
U.S. persons are subject to the provisions of             you should go on to consider Step 6 regarding the
General Prohibition Seven.                                foreign-produced direct product rule.

(2) If your technology or software is not                 (3) If the foreign-made item incorporates more
publicly available and you are exporting from the         than the de minimis level of U.S.-origin items,
United States, skip to the Step 7 in §732.3(b) of         then that item is subject to the EAR and you
this part concerning the general prohibitions.            should skip to Step 7 at § 732.3 of this part and
                                                          consider the steps regarding all other general
(3) If you are exporting items from a foreign             prohibitions, license exceptions, and other
country, you should then proceed Step 3 in                requirements to determine applicability of these
paragraph (c) of this section and the other steps         provisions to the foreign-made item.
concerning the scope of the EAR.
                                                                          (e) [RESERVED]
   (c) Step 3: Reexport of U.S.-origin items


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Steps for Using the EAR                                                                    Part 732 - page 5

  (f) Step 6: Foreign-made items produced                not subject to national security controls are not
   with certain U.S. technology for export to            subject to General Prohibition Three).
             specified destinations
                                                         (2) License Exceptions. Each License Exception
This step is appropriate for foreign-made items in       described in part 740 of the EAR overcomes this
foreign countries.                                       General Prohibition Three if all terms and
                                                         conditions of a given License Exception are met
(1) If your foreign-produced item is described           by the exporter or reexporter.
in an entry on the CCL and the Country Chart
requires a license to your export or reexport            (3) Subject to the EAR. If your item is captured
destination for national security reasons, you           by the foreign-produced direct product control at
should determine whether your item is subject to         General Prohibition Three, then your export from
General Prohibition Three (Foreign-Produced              abroad is subject to the EAR. You should next
Direct Product Reexports) (§736.2(b)(3) of the           consider the steps regarding all other general
EAR). Your item is subject to the EAR if it is           prohibitions, License Exceptions, and other
captured by General Prohibition Three                    requirements. If your item is not captured by
(Foreign-Produced Direct Product Reexports),             General Prohibition Three, then your export from
and that prohibition applies if your transaction         abroad is not subject to the EAR. You have
meets each of the following conditions:                  completed the steps necessary to determine
                                                         whether your transaction is subject to the EAR,
  (i) Country scope of prohibition.         Your         and you may skip the remaining steps. Note that
reexport destination for the foreign-produced            in summary, items in foreign countries are
direct product is a destination in Country Group         subject to the EAR when they are:
D:1 or E:1 (see Supplement No. 1 to part 740 of
the EAR) (reexports of foreign-produced direct             (i) U.S.-origin commodities, software and
products to other destinations are not subject to        technology unless controlled for export
General Prohibition Three);                              exclusively by another Federal agency or unless
                                                         publicly available;
  (ii) Scope of technology or software used to
create direct products subject to the prohibition.         (ii) Foreign-origin commodities, software, and
Technology or software that was used to create           technology that are within the scope of General
the foreign-produced direct product, and such            Prohibition Two (Parts and Components
technology or software that was subject to the           Reexports), or General Prohibition Three
EAR and required a written assurance as a                (Foreign-Produced Direct Product Reexports).
supporting document for a license or as a                (However, such foreign-made items are also
precondition for the use of License Exception            outside the scope of the EAR if they are
TSR in §740.6 of the EAR (reexports of                   controlled for export exclusively by another
foreign-produced direct products created with            Federal Agency or publicly available.)
other technology and software are not subject to
General Prohibition Three); and
                                                          § 732.3 STEPS REGARDING THE TEN
  (iii) Scope of direct products subject to the                 GENERAL PROHIBITIONS
prohibition.     The foreign-produced direct
products are subject to national security controls                       (a) Introduction
as designated on the proper ECCN of the
Commerce Control List in part 774 of the EAR             If your item or activity is subject to the scope of
(reexports of foreign-produced direct products           the EAR, you should then consider each of the

Export Administration Regulations     Bureau of Industry and Security                         July 23, 2012
Steps for Using the EAR                                                                     Part 732 - page 6

ten general prohibitions listed in part 736 of the        You should determine the country of ultimate
EAR. General Prohibitions One (Exports and                destination.     The country of destination
Reexports), Two (Parts and Components                     determines the applicability of several general
Reexports), and Three (Foreign-Produced Direct            prohibitions, License Exceptions, and other
Product Reexports) (§736.2(b)(1), (2), and (3) of         requirements. Note that part 754 of the EAR
the EAR) are product controls that are shaped and         concerning      short     supply     controls    is
limited by parameters specified on the CCL and            self-contained and is the only location in the EAR
Country Chart.      General Prohibitions Four             that contains both the prohibitions and exceptions
through Ten are prohibitions on certain activities        applicable to short supply controls.
that are not allowed without authorization from
BIS, and these prohibitions apply to all items                (d) Step 9: Reason for control and the
subject to the EAR unless otherwise specified                             Country Chart
(§736.2(b)(4) through (10) of the EAR).
                                                          (1) Reason for control and column identifier
          (b) Step 7: Classification                      within the Export Control Classification Number
                                                          (ECCN). Once you have determined that your
(1) You should classify your items in the                 item is controlled by a specific ECCN, you must
relevant entry on the CCL, and you may do so on           use information contained in the “License
your own without the assistance of BIS. You are           Requirements” section of that ECCN in
responsible for doing so correctly, and your              combination with the Country Chart to decide
failure to correctly classify your items does not         whether a license is required under General
relieve you of the obligation to obtain a license         Prohibitions One, Two, or Three to a particular
when one is required by the EAR.                          destination. The CCL and the Country Chart are
                                                          taken together to define these license
(2) You have a right to request the applicable            requirements.     The applicable ECCN will
classification of your item from BIS, and BIS has         indicate the reason or reasons for control for
a duty to provide that classification to you. For         items within that ECCN. For example, ECCN
further information on how to obtain                      6A007 is controlled for national security, missile
classification assistance from BIS, see part 748 of       technology, and anti-terrorism reasons.
the EAR.
                                                          (2) Reason for control within the Country
(3) For items subject to the EAR but not listed           Chart. With each of the applicable Country
on the CCL, the proper classification is EAR99.           Chart column identifiers noted in the correct
This number is a “basket” for items not specified         ECCN, turn to the Country Chart. Locate the
under any CCL entry and appears at the end of             correct Country Chart column identifier on the
each Category on the CCL.                                 horizontal axis, and determine whether an “X” is
                                                          marked in the cell next to the destination in
(4) Items subject to temporary CCL controls are           question. Consult §738.4 of the EAR for
classified under the ECCN 0Y521 series (i.e.,             comprehensive instructions on using the Country
0A521, 0B521, 0C521, 0D521 and 0E521)                     Chart and a detailed example.
pursuant to § 742.6(a)(7) of the EAR while a
determination is being made as to whether                   (i) An “X” in the cell or cells for the relevant
classification under a revised or new ECCN or             country and reason(s) for control column
EAR99 designation is appropriate .                        indicates that a license is required for General
                                                          Prohibitions One (Exports and Reexports in the
  (c) Step 8: Country of ultimate destination             Form Received), Two (Parts and Components
                                                          Reexports), and Three (Foreign-Produced Direct

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Steps for Using the EAR                                                                    Part 732 - page 7

Product Reexports). (See §736.2(b)(1), (b)(2),           license requirements, and part 746 of the EAR
and (b)(3) of the EAR).                                  provides additional requirements.

  (ii) If one or more cells have an “X” in the           (5) Items subject to the EAR but not on the CCL.
relevant column, a license is required unless you        Items subject to the EAR that are not on the CCL
qualify for a License Exception described in part        are properly classified EAR99. For such items,
740 of the EAR. If a cell does not contain an            you may skip this step and proceed directly with
“X” for your destination in one or more relevant         Step 12 in paragraph (g) of this section.
columns, a license is not required under the CCL
and the Country Chart.                                         (e) Step 10: Foreign-made items
                                                            incorporating U.S.-origin items and the de
  (iii) Additional controls may apply to your                             minimis rules
export. You must go on to steps 12 through 18
described in paragraphs (g) to (m) of this section       (1) De minimis rules. If your foreign-made
to determine whether additional limits described         item abroad is a foreign-made commodity that
in General Prohibition Two (Parts and                    incorporates        controlled        U.S.-origin
Components Reexports) and General Prohibition            commodities, a foreign-made commodity that is
Three (Foreign-Produced Direct Product                   ‘bundled’     with     controlled     U.S.-origin
Reexports ) apply to your proposed transaction.          software, foreign-made     software    that    is
If you are exporting an item from the United             commingled with controlled U.S.-origin
States, you should skip Step 10 and Step 11.             software, or foreign-made technology that is
Proceed directly to Step 12 in paragraph (g) of          commingled with controlled U.S.-origin
this section.                                            technology, then it is subject to the EAR if the
                                                         U.S.-origin controlled content exceeds the de
(3) License requirements not on the Country              minimis levels described in Sec. 734.4 of the
Chart. There are two instances where the                 EAR.
Country Chart cannot be used to determine if a
license is required. Items controlled for short          (2) Guidance for calculations. For guidance
supply reasons are not governed by the Country           on how to calculate the U.S.-controlled content,
Chart. Part 754 of the EAR contains license              refer to Supplement No. 2 to part 734 of the EAR.
requirements and License Exceptions for items            Note, U.S.-origin technology controlled by
subject to short supply controls. A limited              ECCN 9E003.a.1 through a.11, and .h, and
number of ECCNs contained on the CCL do not              related controls, and encryption software
identify a Country Chart column identifier. In           controlled for “EI” reasons under ECCN 5D002
these instances, the ECCN states whether a               (not eligible for de minimis treatment pursuant to
license is required and for which destinations.          § 734.4(b) of the EAR) or encryption technology
See §738.3(a) of the EAR for a list of the ECCNs         controlled for “EI” reasons under ECCN 5E002
for which you do not need to consult the Country         (not eligible for de minimis treatment pursuant to
Chart to determine licensing requirements.               § 734.4(a)(2) of the EAR) do not lose their
                                                         U.S.-origin when redrawn, used, consulted, or
(4) Destinations subject to embargo and other            otherwise commingled abroad in any respect
special controls provisions. The Country Chart           with other software or technology of any other
does not apply to Cuba, Iran, North Korea, and           origin. Therefore, any subsequent or similar
Syria. For those countries you should review             software or technology prepared or engineered
the provisions at part 746 of the EAR and may            abroad for the design, construction, operation, or
skip this step concerning the Country Chart. For         maintenance of any plant or equipment, or part
Iraq, the Country Chart provides for certain             thereof, which is based on or uses any such

Export Administration Regulations     Bureau of Industry and Security                         July 23, 2012
Steps for Using the EAR                                                                    Part 732 - page 8

U.S.-origin software or technology is subject to         reasons indicated in an ECCN on the CCL
the EAR.                                                 (reexports of foreign-produced direct products
                                                         not subject to national security controls are not
(f) Step 11: Foreign-produced direct product             subject to General Prohibition Three).

The following considerations are appropriate for         (2)     License Exceptions.      Each License
items abroad and are the same considerations             Exception described in part 740 of the EAR
necessary    to     determine      whether      a        overcomes      General     Prohibition    Three
foreign-produced direct product is subject to the        (Foreign-Produced Direct Product Reexports) if
EAR under Step 6 in §732.2(f) of this part.              all terms and conditions of a given License
                                                         Exception are met by the exporter or reexporter.
(1) If your foreign-produced item is described
in an entry on the CCL and the Country Chart             (g) Step 12: Persons denied export privileges
requires a license to your export or reexport
destination for national security reasons, you           (1) Determine whether your transferee, ultimate
must determine whether your item is subject to           end-user, any intermediate consignee, or any
General Prohibition Three (Foreign-Produced              other party to a transaction is a person denied
Direct Product Reexports) (§736.2(b)(3) of the           export privileges. (See part 764 of the EAR). It
EAR). Your item is subject to this general               is a violation of the EAR to engage in any activity
prohibition if your transaction meets each of the        that violates the terms or conditions of a denial
following conditions:                                    order. General Prohibition Four (Denial Orders)
                                                         applies to all items subject to the EAR, i.e. both
  (i) Country scope of prohibition. Your                 items on the CCL and within EAR99.
reexport destination for the direct product is a
destination in Country Group D:1 or E:1 (see             (2) There are no License Exceptions to General
Supplement No. 1 to part 740 of the EAR)                 Prohibition Four (Denial Orders).           The
(reexports of foreign-produced direct products to        prohibition concerning persons denied export
other destinations are not subject to General            privileges may be overcome only by a specific
Prohibition Three described in § 736.2(b)(3) of          authorization from BIS, something that is rarely
the EAR);                                                granted.

  (ii) Scope of technology or software used to                (h) Step 13: Prohibited end-uses and
create direct products subject to the prohibition.                         end-users
Technology or software that was used to create
the foreign-produced direct product, and such            (1)     Review the end-uses and end-users
technology or software that was subject to the           prohibited under General Prohibition Five
EAR and required a written assurance as a                (End-Use End-User) (§736.2(b)(5) of the EAR)
supporting document for a license or as a                described in part 744 of the EAR. Part 744 of
precondition for the use of License Exception            the EAR contains all the end-use and end-user
TSR in §740.6 of the EAR (reexports of                   license requirements, and those are in addition to
foreign-produced direct products created with            the license requirements under General
other technology and software are not subject to         Prohibitions One (Exports and Reexports), Two
General Prohibition Three); and                          (Parts and Components Reexports), and Three
                                                         (Foreign-produced Direct Product Reexports).
  (iii) Scope of direct products subject to the          Unless otherwise indicated, the license
prohibition.    The foreign-produced direct              requirements of General Prohibition Five
products are controlled for national security            (End-Use End-User) described in part 744 of the

Export Administration Regulations     Bureau of Industry and Security                         July 23, 2012
Steps for Using the EAR                                                                   Part 732 - page 9

EAR apply to all items subject to the EAR, i.e.            (j) Step 15: Proliferation activity of U.S.
both items on the CCL and within EAR99.                    persons unrelated to exports and reexports
Moreover, the requirements of General
Prohibition Five (End-Use and End-User) are in          (1) Review the scope of activity prohibited by
addition to various end-use and end-user                General Prohibition Seven (U.S. Person
limitations placed on certain License Exceptions.       Proliferation Activity) (§736.2(b)(7) of the EAR)
                                                        as that activity is described in §744.6 of the EAR.
(2) Under License Exception TSU (§740.13 of             Keep in mind that such activity is not limited to
the EAR), operation technology and software,            exports and reexports and is not limited to items
sales technology, and software updates overcome         subject to General Prohibition One (Exports and
General Prohibition Five (End-Use and                   Reexports), Two (Parts and Components
End-User) (§736.2(b)(5) of the EAR) if all terms        Reexports), and Three (Foreign-Produced Direct
and conditions of these provisions are met by the       Product Reexports). Moreover, such activity
exporter or reexporter.                                 extends to services and dealing in wholly
                                                        foreign-origin items in support of the specified
   (i) Step 14: Embargoed countries and                 proliferation activity and is not limited to items
             special destinations                       listed on the CCL or included in EAR99.

If your destination for any item is Cuba, Iran,         (2) Review the definition of U.S. Person in part
Iraq, North Korea, or Syria you must consider the       744 of the EAR.
requirements of parts 742 and 746 of the EAR.
Unless otherwise indicated, General Prohibition                        (k) Step 16: In-transit
Six (Embargo) applies to all items subject to the
EAR, i.e. both items on the CCL and within              Shippers and operators of vessels or aircraft
EAR99. See § 746.1(b) for destinations subject          should review General Prohibition Eight
to limited sanctions under United Nations               (In-Transit) to determine the countries in which
Security Council arms embargoes. You may not            you may not unladen or ship certain items
make an export or reexport contrary to the              in-transit. General Prohibition Eight applies to
provisions of part 746 of the EAR without a             all items subject to the EAR, i.e. both items on
license unless:                                         the CCL and within EAR99.

(1) You are exporting or reexporting only                   (l) Step 17: Review orders, terms, and
publicly available technology or software or                             conditions
other items outside the scope of the EAR, or
                                                        Review the orders, terms, and conditions
(2)    You qualify for a License Exception              applicable to your transaction.           General
referenced in part 746 of the EAR concerning            Prohibition Nine (Orders, Terms, and
embargoed destinations. You may not use a               Conditions) prohibits the violation of any orders,
License Exception described in part 740 of the          terms, and conditions imposed under the EAR.
EAR to overcome General Prohibition Six                 Terms and conditions are frequently contained in
(Embargo) (§736.2(b)(6) of the EAR) unless it is        licenses.    In addition, the ten general
specifically authorized in part 746 of the EAR.         prohibitions (part 736 of the EAR) and the
Note that part 754 of the EAR concerning short          License Exceptions (part 740 of the EAR) impose
supply controls is self-contained and is the only       terms and conditions or limitations on your
location in the EAR for both the prohibitions and       proposed transactions and use of License
exceptions applicable to short supply controls.         Exceptions.    A given license or License


Export Administration Regulations    Bureau of Industry and Security                         July 23, 2012
Steps for Using the EAR                                                                    Part 732 - page 10

Exception may not be used unless each relevant
term or condition is met.                                 (2) If none of the ten general prohibitions is
                                                          applicable to your reexport or export from
  (m) Step 18: Review the “Know Your                      abroad, no license is required and you should skip
Customer” Guidance and General Prohibition                all remaining Steps.
    Ten (Knowledge Violation to Occur)
                                                          (3) If one or more of the ten general prohibitions
License requirements under the EAR are                    are applicable, continue with the remaining steps.
determined solely by the classification, end-use,
end-user, ultimate destination, and conduct of
U.S. persons. Supplement No. 1 to part 732 of              § 732.4 STEPS REGARDING LICENSE
the EAR is intended to provide helpful guidance                        EXCEPTIONS
regarding the process for the evaluation of
information about customers, end-uses, and                     (a) Introduction to Steps for License
end-users.        General     Prohibition    Ten                           Exceptions
(Knowledge Violation to Occur) prohibits
anyone from proceeding with a transaction with            If your export or reexport is subject to the EAR
knowledge that a violation of the EAR has                 and is subject to General Prohibitions One
occurred or is about to occur. It also prohibits          (Exports and Reexports), Two (Parts and
related shipping, financing, and other services.          Components         Reexports),      or      Three
General Prohibition Ten applies to all items              (Foreign-Produced Direct Product Reexports),
subject to the EAR, i.e. both items on the CCL            consider the steps listed in paragraph (b) of this
and within EAR99.                                         section. If your export or reexport is subject to
                                                          General Prohibitions Four (Denial Orders),
   (n) Step 19: Complete the review of the                Seven (U.S. Person Proliferation Activity), Eight
            general prohibitions                          (In-Transit), Nine (Orders, Terms, and
                                                          Conditions), or Ten (Knowledge Violation to
After completion of Steps described in this               Occur), there are no License Exceptions available
section and review of all ten general prohibitions        for your export or reexport. If your export is
in part 736 of the EAR, including                         subject to General Prohibition Five (End-Use
cross-referenced regulations in the EAR, you will         End-User), consult part 744 of the EAR. If your
know which, if any, of the ten general                    export or reexport is subject to General
prohibitions of the EAR apply to you and your             Prohibition Six (Embargo), consult part 746 of
contemplated transaction or activity.                     the EAR for applicable License Exceptions.

(1) If none of the ten general prohibitions is                   (b) Steps for License Exceptions
applicable to your export from the United States,
no license from BIS is required, you do not need          (1)    Step 20:       Applicability of General
to qualify for a License Exception under part 740         Prohibitions. Determine whether any one or
of the EAR. You should skip the Steps in                  more of the general prohibitions described in
§732.4 of this part regarding License Exceptions          §736.2(b) of the EAR apply to your export or
and proceed directly to the Steps in §732.5 of this       reexport. If no general prohibition applies to
part regarding recordkeeping, clearing the                your export or reexport, then you may proceed
Bureau of Customs and Border Protection with              with your export or reexport and need not review
the appropriate Shipper's Export Declaration or           part 740 of the EAR regarding License
Automated Export System Record, and using the             Exceptions.     You are reminded of your
required Destination Control Statement.                   recordkeeping obligations related to the

Export Administration Regulations      Bureau of Industry and Security                         July 23, 2012
Steps for Using the EAR                                                                   Part 732 - page 11

clearance of the U.S. Customs Service provided           provides authorization for reexports only to the
in parts 762 and 758 of the EAR.                         extent each License Exception expressly
                                                         authorizes reexports. License Exception APR
(2) Step 21: Applicability of restrictions on            authorizes reexports only.
all License Exceptions. Determine whether any
one or more of the restrictions in §740.2 of the           (iv) If you are exporting under License
EAR applies to your export or reexport. If any           Exceptions GBS, CIV, LVS,STA, APP, TSR,
one or more of these restrictions apply, there are       or GOV, you should review §743.1 of the EAR to
no License Exceptions available to you, and you          determine the applicability of certain reporting
must either obtain a license or refrain from the         requirements.
export or reexport.
                                                         (4) Step 23: Scope of License Exceptions.
(3) Step 22: Terms and conditions of the                 Some License Exceptions are limited by country
License Exceptions.                                      or by type of item.

  (i) If none of the restrictions in §740.2 of the         (i) Countries are arranged in country groups
EAR applies, then review each of the License             for ease of reference. For a listing of country
Exceptions to determine whether any one of them          groups, please refer to Supplement No. 1 to part
authorizes your export or reexport. Eligibility          740 of the EAR. Unless otherwise indicated in a
for License Exceptions is based on the item, the         License Exception, License Exceptions do not
country of ultimate destination, the end-use, and        apply to any exports or reexports to embargoed
the end-user, along with any special conditions          destinations. If your export or reexport is
imposed within a specific License Exception.             subject to General Prohibition Six (Embargo) for
                                                         embargoed destinations, License Exceptions are
  (ii) You may meet the conditions for more              only available to the extent specifically provided
than one License Exception.          Moreover,           in part 746 of the EAR concerning embargoed
although you may not qualify for some License            destinations.
Exceptions you may qualify for others. Review
the broadest License Exceptions first, and use              (ii) Special commodity controls apply to short
any License Exception available to you. You              supply items. No License Exceptions described
are not required to use the most restrictive             in part 740 of the EAR may be used for items
applicable License Exception. If you fail to             listed on the CCL as controlled for Short Supply
qualify for the License Exception that you first         reasons. License Exceptions for short supply
consider, you may consider any other License             items are found in part 754 of the EAR.
Exception until you have determined that no
License Exception is available.                          (5) Step 24: Compliance with all terms and
                                                         conditions. If a License Exception is available,
  (iii) License Exceptions TMP, RPL, BAG,                you may proceed with your export or reexport.
AVS, GOV, and TSU authorize exports                      However, you must meet all the terms and
notwithstanding the provisions of the CCL.               conditions required by the License Exception that
List-based License Exceptions (LVS, GBS, CIV,            you determined authorized your export or
TSR, and APP) are available only to the extent           reexport. You must also consult part 758 and
specified on the CCL. Some ECCNs contain                 762 of the EAR to determine your recordkeeping
License Exception STA exclusion paragraphs.              and documentation requirements.
Those paragraphs delineate items excluded from
the License Exception STA provisions in                  (6) Step 25: License requirements. If no
§ 740.20(c)(2) of the EAR. Part 740 of the EAR           License Exception is available, then you must

Export Administration Regulations     Bureau of Industry and Security                         July 23, 2012
Steps for Using the EAR                                                                   Part 732 - page 12

either obtain a license before proceeding with          See §758.1(g) of the EAR and 15 CFR 30.7(m) of
your export or reexport or you must refrain from        the FTSR.
the proposed export or reexport.
                                                          (i) License number and expiration date. If you
(7) Step 26: License applications. If you are           are exporting under the authority of a license, you
going to file a license application with BIS, you       must enter the license number on the SED or AES
should first review the requirements at part 748        record. The expiration date must be entered on
of the EAR.          Exporters, reexporters, and        paper versions of the SED only.
exporters from abroad should review the
instructions concerning applications and required         (ii) License Exception. If you are exporting
support documents prior to submitting an                under the authority of a License Exception, you
application for a license.                              must enter the correct License Exception symbol
                                                        (e.g., LVS, GBS, CIV) on the SED or AES
                                                        record. See §740.1 and §740.2 of the EAR.
    § 732.5 STEPS REGARDING
SHIPPER’S EXPORT DECLARATION                               (iii) NLR. If you are exporting items for which
OR AUTOMATED EXPORT SYSTEM                              no license is required, you must enter the
RECORD, DESTINATION CONTROL                             designator NLR. You should use the NLR
                                                        designator in two circumstances: first, when the
        STATEMENTS, AND
                                                        items to be exported are subject to the EAR but
        RECORDKEEPING                                   not listed on the Commerce Control List (CCL)
                                                        (i.e., items that are classified as EAR99), and
   (a) Step 27: Shipper’s Export Declaration
                                                        second, when the items to be exported are listed
          (SED) or Automated Export
                                                        on the CCL but do not require a license. Use of
              System (AES) record
                                                        the NLR designator is also a representation that
                                                        no license is required under any of the General
Exporters or agents authorized to complete the
                                                        Prohibitions set forth in part 736 of the EAR.
Shipper’s Export Declaration (SED), or to file
SED information electronically using the
                                                        (2) Item description. You must enter an item
Automated Export System (AES), should review
                                                        description identical to the item description on
§758.1 of the EAR to determine when an SED is
                                                        the license when a license is required, or enter an
required and what export control information
                                                        item description sufficient in detail to permit
should be entered on the SED or AES record.
                                                        review by the U.S. Government and verification
More detailed information about how to
                                                        of the Schedule B Number (or Harmonized Tariff
complete an SED or file the SED information
                                                        Schedule number) for License Exception
electronically using AES may be found in the
                                                        shipments or shipments for which No License is
Bureau of Census Foreign Trade Statistics
                                                        Required (NLR). See §758.1(g) of the EAR;
Regulations (FTSR) at 15 CFR part 30.
                                                        and 15 CFR 30.7(l) of the FTSR.
Reexporters and firms exporting from abroad
may skip Steps 27 through 29 and proceed
                                                        (3) Entering the ECCN. You must enter the
directly to §732.6.
                                                        correct Export Control Classification Number
                                                        (ECCN) on the SED or AES record for all
(1) Entering license authority. You must enter
                                                        licensed and License Exception shipments, and
the correct license authority for your export on
                                                        “No License Required” (NLR) shipments of
the SED or AES record (License number,
                                                        items having a reason for control other than
License Exception symbol, or No License
                                                        anti-terrorism (AT). The only exception to this
Required designator “NLR”) as appropriate.
                                                        requirement would be the return of unwanted

Export A