S. 737 REPORT NO. 96-169 A BILL IN THE SENATE OF THE UNITED STATES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85-00003R000100040003-0
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 110
• Document Creation Date: December 21, 2016
• Document Release Date: October 23, 2008
• Sequence Number: 3
• Publication Date: March 22, 1979
• Content Type: REPORT

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wo Ly
Calendar No. 181
96TH CONGRESS
1ST SESSION Se737
[Report No. 96-169]
To provide authority to regulate exports, to improve the efficiency of export
regulation, and to minimize interference with the right to engage in com-
merce.
IN THE SENATE OF THE UNITED STATES
MARCH 22 (legislative day, FEBRUARY 22), 1979
Mr. STEVENSON (for himself and Mr. HEINZ) introduced the following bill; which
was read twice and referred to the Committee on Banking, Housing, and
Urban Affairs
MAY 15 (legislative day, APRIL. 9), 1979
Reported by Mr. STEVENSON, with an amendment to the text and an amendment
to the title
[Strike out all after the enacting clause and insert the part printed in italic]
A BILL
To provide authority to regulate exports, to improve the efficien-
cy of export regulation, and to minimize interference with
the right to engage in commerce.
1 Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress- assembled,
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1 s be eked no the "Export Administration
2 Hof 1979".
3
4 mac} 2- The Congress makes the following ?
5 (4. The right of Tjnitcd States ates eitizeiis to
6 ie a ?t fflefital eetteern of
7 United States policy.
8 ~ ~ te sigflifieantly to the balanee
9 of trade, , ftftd production of the Uiiited
10 States.
11 (8) Theavailabi4y a?eer-tain materials at home
12 andabread-vafies sethftt the quantity and composition
13 of Unite des experts and ameeg
14 importing eettntfies fftfty affect the welfare of the 45-
15 meetie eeeeemy and ffifty have an important bear-iftg
16 upfffi fulfillment of the foreign policy of the Uiiite
17 mates
18 (4) The , strietea expert of goods and teehfiel
19 off withetit regard to whether they make a signifieant
20 to the military potential of any other
21 flatieti of nations affect the national se-
22 ettr4y of the Uflited States.
a strietio
23 The ~ of eifper-ts from
24 the Uiiited mates ban a serious adverse effect on ettr
25 balance of pays and domestic empleyfflefi and
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1 -n expert restrictions ap-
2 plied by the United States are more e thaffi
3 expert r rs imposed by other countries.
4 () The uneer-tainty of peliey toward certain eate
5 geries of experts lres ettr-taile the efforts of Amer-iea
6 bees ie these categories to the av=e=rt of the
7 overall attempt to improve the trade balance of the
8 United mates arld to deer-ease domestic uneffipleyfaefit.
9 (T) Un?e"sona1'1 restrictions oft access to world
10 supplies eatr eause worldwide pelitieecl end eeeeemie iii-
11 stability, interfere vAth free trade, and
12 retard the growth and developffie e?rrntions.
13 OF POLIGY
14 Snc 3. The Congress mattes the following deelafatiens4
15 (44 [t is the peliey e? the United States to e~ini
16 e uncertainties in expert control poliey and to en--
17 courage trade as a right net a privilege with all eoun
18 tries with whieh we have diplomatic of trading rela-
19 tiees, except these countries with whieh such trade has
20 been area by the n to be against the tra-
21 tional inter-est.
22 (-) -t is the peliey of the United States to restrict
23 the right to expert only after lull eensider-ftti of the
24 impftet on the economy of the United des and only
25 to the extent
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1 (-A} to protect the domestic economy from
2 the e~ieessive amain of sere mate s atd to
3 reduce the serious inflationary izet of foreign
4 demefid;
5 (B4 to fttr-the the foreign pehey
6 of the United States of to fulfill is deelared inter
7 national Obligations;.
8 ( 0 ) to meet t h e expert of goods a teee-
9 iielegy which weld e e , e eaot eetttr-ibti
10 t i e ft t o the military petefitial of a-fly other nation
11 of nations which could e detrimental to the
12 ftational security of the United States.
13 (94 1tisthe poiicyof the Uiiite States 44 to for-
14 ffittlatc, reformulate, a*4 a necessary es eis
15 to the faftmiffitifn extent possible in cooperation with a11
16 Lions, and (B)teeneettfage observance of ft ttnifer-m
17 expert control pokey by ai nations vvM whiek the
18 United des hoe defense treaty commitments
19 (4)4tisthepolicyof the United States to iseis
20 economic resources aid trade potential to ? th4 the
21 sound growth and stftbility of its economy as weU as to
22 further its and foreign peliey ebjee-
23 Lives-
24 (6) [t is the peliey of the United States
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1 (- } t-e oppose s trade practises er
2 boycotts ?este}ed er itpposec by fereign countries
3 against ether eetttttf friendly to the Unite
4 States of against any Uflited States person;
5 (4) to entee ad ift speei?ied eases, re-
6 quir-e United States persons engaged in the expert
7 e? geeds and technology to refuse to take actions,
8 including of entering into
9 of fie, whieh have the
10 effect of ? ifthering Of sttjpper-tin the e
11 trade practices of beyeetts ?ostered Of imposed by
12 any foreign eettfttr-y against a eettntry friendly to
13 the United States of against any United States
14 person;; and
15 (G3 to fester ntern?tioiia eeeper-atieti and
16 the develepffle of international rules and instita
17 tiers to assure reasonable assess to world sup-
18 pies.
19 ($) It is the peliey of the United States t the
20 desirability of subjeeting, Of eentifittifig to subject, par-
21 tiettlar geeds of technology to United States expert
22 controls show be subjected to review by and eensulta
2 3 tier with fepfesefitet of United des
24 Gwveffiffte ?t agencies and private industry.
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1 (7) It is the poliey of the Uftited States to ttse
2 expert eentrols, including lie.- ?ees, to secure the e-
3 moval by foreign countries of restrictions of access to
4 supplies whefe seems ins have of have n
5 serious impaet, have ea-use af
6 ffmy ea-use a serious demesne shortage, of have been
7 imposed ?of doses of ififluefiein the foreign policy
8 of the United States. In effecting this poliey, the Presi
9 de4 shall ffm4i.-- e reasonable e944 to seetir-e the
10 Leval of reduetiee of such restrictions, polieies, of
11 actions through ?ter?ationa nod
12 fflent before resorting to .the ifapesitiett of controls of
13 eHpefts from the United States. No aetiett taken in ?i4-
14 ?illmeet of the policy set forth in this parag h shall
15 ftpp~y to the expert of medicine of medical
16 ($) It is the policy e? the United States to ttse
17 expert controls to efteettfag-e ate countries to take
18 immediate steps to prevent the ntse of their territories
19 or resources to aid; eneearage, of give sa w to
20 those persons involved in o -"
, 21 tieing in nets of ii4efnfttien to rorism. To achieve
22 this objective, the art shall make every reason
23 able effort to secure the removal er reduction of such
24 assistance to international terrorists through inter-na
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1 tional cooperation an4 agreement before resorting to
2 the ifnpositieft of expert ee els
3 A UTIIOILITy
4 Sc} 4 (e)(4) To the extent necessary to~tuate the
5 policies set forth in section .9 of this A-et-, the President ffifty
6 pfehibit or curtail the expert, exeept under such rules an4
7 r-egttlatiefis es he shall prescribe, of any goods of technology
8 B eat to the jurisdiction of the United States of exported ly
9 any person subject to the u shietion of the United States. To
10 the extent necessary to achieve effective enforcement of this
11 Ae such rules and regulations may apply to the finafteifig,
12 transporting-, a other servicing of experts and the par-tieipa--
13 tier therein by meet to the jurisdiction of the
14 United} States. In etir-tailifig the expert of any goods Of tech
15 nelegy to e4eettiate the peliey not forth in seetieft 3(2)(A) of
16 thin Aet-, the President ie authorized to allocate a portion of
17 expert licenses on the basis of factors other than a prier his-
18 tery of expo tin
19 (2)(A) [n administefing expert controls ?er national se-
20 _eufj~y pttfpeses no prescribed in section 3(2)(G) of this Ant
21 and ?er foreign pokey purposes no proscribed in section
22 3(2)(B) of thisAe~-,Unite States pelie yt~war-d ifidividual
23 countries shall net be determined exclusively on the basis of a
24 eettntfy''s of status he shall take
25 into account such factors no the eetmtr-y present and poten_
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1 relationship to the wed des, its present and en
2 to countries friendly of hostile to the United.
3 States, its andwidingness to een emirs of
4 United States experts in accordance with United States
5 peliey, ftnd such other factors as the Pr-esiident ffifty deem
6 . The Pr-esident shat review et least anntmily
7 United States policy toward iiidividtml countries to d ie
8 whether- such policy is PppfepfiPt-e in light of the faetefs
9 speei?ied in the preeeding wee. The rests of such
10 review, together with the justifieatieft fef United States
11 policy in light of such ?aetors, ski be reported to Congress
12 ineaehr-eper- required section 14 of thin A-et-.
13 (B) des an4 regulations under this subseetieft fftay
14 provide fof denial of efty f:eqttest efftjpplieatien ?efa
15 to expert. goods er technology from the United States, its
16 territories end , whieh woul d nee a signifieafit
17 eentr4titieft to the military potential of ony iietieft of ee i
18 mien of nations thfeatening the of the
19 United des if the Pr-esidefit determines that their expert
20 could prove detrimental to the national seettfity of the^-U hied
21 States. Tn administer-ifig expert controls fef national 22 purposes es preserved in section 8(2)(C) of this A-et-, priority
23 shall be given to preventing the effective transfer to countries
24 to whieh experts are controlled ?er national seems purposes
25 of goods and technology critical to the design, ,
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1 of production of militar-ysysteffis whieh mralteasigei?i
2 eaat contribution to the fflilitafy potential of any nation of
3 nations which could prove detrimental to the- national seeut
4 r of the United States. The Secretary of Commerce, i-n
5 eefistAtation with the Secretary of Defense, shall review net
6 less frequently than annttally all controls maintained ?er na-
7 decal seettr4y purposes meant to this Aet fef to ptir-pese
8 of making such reams an ffmy be necessary to insure thftt
9 expert controls are limited, to the ffietHiffitim eft possible
10 nwitkthepur-posesof thisA-et-, tos
11 critical geeds and teehnelegie-R and the faeehanisffia through
12 .tom they ffifty be effectively transferred. A desefiptie of
13 actions taken to carry ea this s bseetion shall be wed in
14 each report regtired tinder section 44 of tlris A-et-. Such de-
15 ser-iptiefts shall eentain as fatteh detail as he included
16 eensistent with the national seettr4y and the Reed to fflaifitaifi
17 the eenfidefitia4y of per' .
18 (C4} Prier to desire, inc of extending export
19 controls for foreign pehey purposes ptifstiant to the attthef4y
20` by " A~t-, the Pr-esident shall glee ? 44 eensider-ft
21 tier te-
22 alte-rnative means to hir-ther- the foreign policy
23 purposes in question;
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1
() the ability of the United States rove~? nt to
2
control effectively the expert of the goods of teehfial
3
egy in question;
4
(iii) the likeliheec that foreign
5
jein the United States in effeeti~vely controlling such
6
experts;
7
. (ice} the probability that such controls wiI4 aebieve
8
the intefided foreign pelie purpose;
9
(} the effect of such eeetrels eft Unified States
10
t
d
d
i
d
expor
s , an
uet
efi, an
pr-e
en the inter-
11
national reputation ef the United motes as a suer
12
of geeds and teehnelegy; and
13
(v} the reaction e? ether countries to the esi-
14
tier of enlargement e? such expert controls by the
15
United States.
16
(U) Whenever- the
in
creases, er ex--
17 tends expert controls ?er foreign pokey purposes pttr-sumit to
18 attther4y pr-evide by this Aet; he shah
imfflediately ;-i---
19 the ~ ftgr-ess of such action and #take public a repent speei?y
20 ing his conclusions with respect to the s der- t .....set
21 forth in this and indicating hew such expert een-
2 2 trols further signifieefitly the foreign policy of the United
23 States er fulfill its declared inter-nation .
24 (94 The President shall net impose expert eentrels ?er
25 foreign policy of purposes en the expert
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1 k-offi the wed des .e? goods of technology Lek he de-
2 ter-fflines is awe without ran ffeffi sources outside
3 the wed des i t significant quantities ate eefflpftf"Ie in
4 quality to these p eed in the ed States, B ess the
5 President deter-mines adequate evidence has been pie-
6 seeted to hifn the absenee of etteh een-
7 #fel-s woutld prove dental to the foreign policy of nation
8 &1seettr-ity of the Uffite Where, in
9 this pftfagr-ftph, a port controls are imposed fef aeeer-daftee with
foreign policy
10 of national foreign a
11 the Ffesident take steps tome ftegetiftfienEi
12 w4h the gowniffien of the foreign ewes f 0f
13 the pur-pose of elifflinfttin such
14 P &X44 Except as ether-wise provide i t this Ac~, the See-
15 rotary of Commerce Aift4 the Pepfftment of
16 wee as necessary to effeetuftte the policies set forth in
17 thisAet-. The Seefetftfy of eha4 maintain aIiA of
18 goods a technology the evert of whiek from the Uftite
19 mates, its terrerities a-ftd possessions, is pied of regu
20 '. pursuant to this A-et,. The Secretary shall review such
21 list stet less f equently in order to make
22 pfefflptly such changes acid revisions as ffifty be necessary or
23 die in furtherance of the policies set forth in this Aet,
24 The Seer-et ry shall inelude in each review an t. of
25 the availability &effl sources wide the United States, its
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1 ter-r-iteries atd , of geeds ateeheeiegy in signifi
2 eant quantities and ewe in qtta4y to these items in-
3 eluded off such 44. In order to further- effeetuate the policies
4 set forth in this Aet-, the Sew shall establish ae Office of
5 Foreign Vr-e4ttet en4 Technology n ?+, whose ?eee-
6 tieii-R 4+ag include monitoring gang oft
7 the foreign availAilit of goods an4 technology subject to
8 expert eeetrel. The Seems s iftelti4e e deed state 9 meat with respect to actions taken in eefftplia-n with the
10 provisions of thiepar-agfftph ieeachreportto t4eCeflgr-ess
11 ptif sttafltto seetion44of this
12 (2-} The Sew of wee s keep the die
13 fully apprised of changes in expert control pokey atd preee
14 dures institutes in eenfer-ffli~y w4h thi-R Ant with a view to
15 trade. The Secretary sly meet fegular-ly with
i L4 L.303
16 repr-esefttat e? the sector in order to obtain their
17 -views off expert control policy atd the foreign of
18 goods and teekiielegy,
19 (e)(1)(A) To e ate the policies set forth in tiff
20 the Seeretary of wee s establish the fell A4;;Ai:R -th e
21 types f4 expert lieenses:
22 A vftlidate lieense.
23 (iii - quetlifie general lieense.
24 (iii) A general iieense.
25 (B) As used intkissubsection
-
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1 (i4 a "validate lieense" is a lieense authefizing
2 the expert of goods of technology meant to a 4eeu-
3 ment issued upon ftpplieatiefi by an exporter it accord 4 anee with rules an4 r-egulfttions issued matt to this
5 Aet: -A validftted lieense fffay be required ?er the expert
6 of goods and 1+ nolegy sttbjeet to multilateral eet els
7 is whieh the United States vaftieipateR of as deter
8 pined pursuant to payage ( of this sr
9 () ft "qualified general lieense" is ft license ax-
10 therizing the expert of goods of teehfieleg-yj of ft Blass
11 of goods of teehfielegy7 sweet to the eenditions een-
12 tainted in rules aid reg~tlatiens issued pursuant to this
13 Aet-, o4 fufthersubjeettoappfeval of the par-tiettlaf
14 eensignee ain4 end ttse of the goods of teehnelegy, The
15 goods and teehfieleg meet to control by qualifie
16 general license shall be a eh meant to ft
17 graph (-9) of this subsection; sod
18 (iii) s "general lieense" is a license atithefizi-ft
19 the expert of a Blass of goods Of teehttelegy without
20 sspeei?ie approval i? the export is e feeted is accordance
21 with the eeftditiefis contained is mules and regulations
22 issued pursuant to this A-et-. A41 goods and technology
23 net sweet to control by a validated lieense Of by a
24 qualified general license shall be expo le ptwstiant to
25 a general lieense.
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1 (2} To effeettiate the policies se forth ie section of this
2 A e t-, i is the intent of Congress t4at the ese of -validated
3 lieenses be limited to the greatest extent possible to the eea-
4 trel of the expert of goods and technology .tom are sweet
5 to multilateral controls ie whie the Unite des partiei
6 pates. To the extent that the Pfesiden d es thftt the
7 policies set forth ie seetion 9 of this Ant require the control of
8 the expert of ether goods aed teehiielog-yF of more stfifigefit
9 controls than the multilateral eeetrols, he will report to the
10 Congress within six months from the date of enactment of
11 this A-et-, and annually ther-eatef, the reasons fef the need to
12 impose, of to eentiiitte to impose, such eeetrols. It is further
13 the intent of Congress that expert controls whieh exeeed the
14 ffittitilater-al controls shall he effected to the greatest extent
15 possible by means of qualified general lieenses..
16 (3}Withift 4xt-y days from the dft~-eof enactment othis
17 Ae~, the Sew of wee shall prescribe conditions ?er
18 the ase of end use gents and the form of such state
19 mss, and establish jpfE)eedttfes ?er the appfeved of consign
20 ens of goods and technology that ffifty be exper-t-ed _ '
21 to a qualified general lieense.
22 44 It is the intent of the Congress Chet any export Ii-
23 sense application required antler this Ant shall be appfeve
24 of disappfewd within ninety days of its reeeipt. Upon the
25 expiration of the ninety d perien beginning oft the date of
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1 its rceeipt, ate expert lieeese ftpplieatien reqttir-e ttfxler thie
2 Aetwhieh has Fret been approved er disc rem s he
3 deemed to be approved end the license shall be issued mess
4 the Secretary of wee of other official exereising ati-
5 ~ wider- thi-R A4 finds that additional time is required
6 and notifies the applicant in writifig of the specific
7 stances requiring such additional time. pend-
8 ing more than y days shall be referred to the Expert
9 Administf P, Beard sta' red by pafagfPzph (-7-) of this
10 stibseetieft.
11 3 With respect to any expert license appheatien net
12 finally approved er disapproved .tom iiinevy days of its re-
13 eeipt as provided i t paragraph ( of this subseetieft, the ep-
14 plieant s to the maximum extent eensistent with the t}a-
15 tieeal seedy of the United States, be informed in writing of
16 the specific questions raised and negative sidera t; o? s Of
17 ?datio s made by any agency of depaftffieiit. of the
18 Government with respect to sHA license applieatieft7 end
19 shall be aeeerded a* apply to respond to etteh gttes
20 ?iene considerations, Of r-eeemfflendatiens in writing prier to
21 final approval Of In miming such final dal
22 of , each official exercising authority raider this
23 Aet shall take fully into account the apples response.
24 (4) Weer the Secretary domes that it is
25 nary to refer ae expert license application to any intefagettey
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1 re-view process ?er, approve,!, he s if the alit se
2 re gists, pro e the a eat tae oppeftunity to rem
3 any deetiffienta- to be submitte to such process fef the
4 oseof deser-ibifig tteexpert iequestien, in orderto 4e-
5 such desefibes the
6 proposed expert ae4 to pro e in writ-
7 iegtebeappende to the applieatien,
8 ( Ii ftfl denial ef ii export license application, the
9 applicant s beififer-me i writing of the speeifie statutefy
10 basis ?er such deem The Sew s establish a~
11 s;te procedures ?er appheants to meal deems e? apphea
12 tions, aed such procedures way include the opportunity ?er
13 appeals to the Expert Adffliftistfa Beam sta'L- d
14 under- pew Pgf &ph (-74e? thiff s n.
15 (7)(A) There ie est"lishe an
16 Beard (ereinafter re?erred to ee the "Bear-d") composed of
17 three voting members, who s be designated by the Seerc
18 tarp of Commerce, the Secretary of Defense, aid the Seere-
19 tart' of State, respectively,- ee4 eel advisory members
20 name by the heads of such ? ee4ageheies
21 ae the President ffmy de@iginate from time to time. The
22 member from the Pepaftffiettt e? Ceffiffier-ee shall preside
23 over all Beard meetings. License applieftt re?erred to the
24 Board shall be appreve of denied by ee a e vete e?
25 at least twe of its three i~etiftg gibers. Any voting member
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1 of the Beard w&y appeal a deeision of the Beard to the
2 Expert Adfftinistr-at4en Review Getmeil, h if such
3 appeal io made within ?i" days of the Beards deeision.
4 (B There is strmed as
5 Review Council (hereinafter re?erred to as the "Review
6 Cetinell) eempesed o?-the Secretary of Commerce, the See-
7 retary of Defense, aid the Seems of .tam The Shy
8 of amerce shall preside over meetings of the Review
9 Gotmeil. Lieeese applieationa referred to the Review Council
10 shall beappfeve efdenie by an affir-fflative vete of least
Coun
11 two of its three member-s. Any member of the Review
.12 -64 fffay appeal a decision of the Review Council to the Brest
13 dent, hi o 4y if such appeal is made within five days of the
14 Review Council's. deeision.
15 (G) The art shall deeide appeals from deeisions of
16 . the Review Couneil made p ttant to this Aetr, and review
17 annually the a es of. the Beard, the Review Gettneil, and
iffiplemefita-
18 the Department of Free to ire efficient
.19 tine of the policies of this
20 EB} Aiiy application upon whiek the Board has reaehed
21 no decision within thirty days of reeeipt shall he referred to
22 the Review Couneil.. upon whieh the Review
23 Council has reached no decision within thirty days shall be
24 referred to the Pr-esident. application net approve of
25 within one hundred and eighty days from initial
S. 737--2
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1 receipt by the Depaftflient of Commerce s be ed to
2 Jae approve ai the heense shall Jae issued by the Depart
3 scent of Commerce, unless the applicant bee eensented in
4 ~Yffiting to a longer period.
5 (d} The Secretary of Defense io authorized to review
6 a proposed expert of goods of technology to any eee y to
7 whieh experts are eefttr-elle for national security purposes
8 a shall dater-mine in eenstiltatieff with the Seer-etar-y of
9 Commerce a eenfir- in writing the types aod categories of
10 tr-ansaetienff-whieh shett! be row by the Secretary of
11 Defense to carry out the purpose of this ubseetion.. When-
12 ever a license or outer auther-i is regttes for the expert of
13 geeds or technology withift such types or categories of trans
14 actions to coy country to whiek experts ore restricted for
15 purposes, the Seer-etafy of Commerce A-A
16 notify the Secretary of Defense of such request, e
17 issue any license prior to the receipt of the reeefflffiefidatien
18 of the Secretary of Defense or the expiration of thirty 4wfs
19 after fietifieatiefti t ef first eeeurs. The Secretary of
20 Defense shall ear-efit!y consider all
21 pursuant to this subseetieft au4; not later theffi thirty days
22 after iietifieatieti e ? the request shall
23 (44 ~ ?d to the Seer-etewy of Coe ee drat
24 the proposed expert be disapproved if he determines
25 th t the expert of such goods or technology will make
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1
a significant eentributieft; 3 would prove der
2
fi to the national seetifity of *,he Unite States, to the
3
notary potential of -sueh eewttr-y of any other eountry;
4
(24 notify the Seer-etafy of Commereethathe wi4
5
interpose ee objection if appr-epriat-e conditions de-
6
signed to aehieve the purposes of th6 Aet
e imposed;
7
Of
8
(3) indicate that he does net intend to interpose
9
an objection to the export of such goods of teehiielegy,
18 meree, and eeftfir-ffl ift writing the types and categories of
19 tr-ansaetiena Leh should he reviewed by the. Secretary of
10 If the Secretary of Cue does net aeeept the r-eeefnfften
11 dation of the Seems of Defense, upeff the. request of the
12 Secretary of Defense, the application shah he submitted to
13 the Expert Admittist-fa Review Council.
14 (e) ire of Mate is authorized to review any
15 proposed export of goods of technology to any eetifitfy to
16 which exports are restricted for foreign policy purposes and
17 shah determine, in the Secretary of Cem-
20 Mate to Barry oi? the purpose of this subseetian W? neneyer a
21 license 3s ,requested for the expert of goods or technology
22 within such types or categories of transactions to any country 23 to which experts oremstrieted for foreign pokey pttr-poses,
24 the Secretary of wee shall notify the Secretary of
25 State of such request, and ffwy net issue any license der to
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1, the reeeipt of the feeemmendatie e? the Seeretary of mate
2 of the expiration of thir days afte -
3 ?iist eeettf s. The Seems e? St7ate shall carefully consider
4 all notifieettiefla submitted to l pursuant to this subseetion
5 a*d, net latef than thif~y days ft4ff notification e? the retest
6 shall
7 (44 recommend to the 9eeretary of wee tlfat
8 the proposed expert be if he domes
9 that pr-ehibitiftg the expert e? such goods of t+ melogy
10 ie necessary to further signifieandy the foreign policy
11 of the United des of to fulfill ids declared ioter-na
12 tienal Obligetiefts's.
13 (~ notify the of Commerce that he will
14 interpose oe objection if appfepfiat-e conditions de-
15 signed to aekieve the purposes e? this Aet ni a imposed;
16 er
17 (4) indieate that he lees net intend to interpose
18 en objection to the expert of such goods of teehnelegy;
19 If the Seems of wee does net accept the mee en
20 dation of the Secretary e? State, upeff the request of the See-
21 retary of State, the a nation shall be submitte to the
22 Expert Administration Rem: Getineil.
23 (?) any ether prevision of lam ; any de-
24 par-tment, agency, of o finial of the Federal Gover-nme en-
25 thorized to review of make r-eeemmendatiens with respect to
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1 expert license appheatiena required pursuant to this Aet shall
2 d with the See -y of Commefee
3 end confirm in writing the types ae4 categories of transae
4 tions specified countries whieh should, be reviewed by
5 such , agency, of official. Ba er e lieense is
6 requested for the export to such eettntri of goods of teeh-
7 nelogy within such types and categories of , the
8 Secretary of Commerce s notify such depaftment., agency,
9 of official of such request, and fftay eet issue aey license p
10 to the receipt of the feeemmefidatie of such ,
11 agency, of official, of the expiration of thirty des fig
12 such ftetifieatienT o er first eeettrs. Such
13 agency, er official shall eafefully consider al} fietifieatietts.
14 submitted pursuant to this Aet and net later than thi4y days
15 after new of the request shall
16 (-14? ?d to theSeer-etar-y of Commer-ee t
17-. the expert of such goods of technology be disapproved--,
18 (24 notify the secretary of wee that such
19 , agency, er of ieial will interpose no ebjee-
20 tine if conditions are imposed; Of
21 (~} indicate that stye , ageney, or effi-
22 eiul does net intend to interpose an objection to the
23 export of such geode of
24 -(g)(1) Toefectuiate the policy set forth i section d
25 (2)(A) of this the Seeretewy of Commerce shall tenter
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1 experts a contracts ?e1 experts, of any goods (ether- than a
2 eemmetity whieh ie subject to the reporting A . tiff of
3 section 84-4 o? the Agriettitur- Aet of 197 0) when the
4 :velttfne of such experts in relation to de e supply eentrib
5 utes orffifty itribute, to on increase in demesne prices of ft
6 demestie shortage, ansttehprieeinereaseof shortage hos
7 or ffifty have, a serious adverse impaet on the eeeneffly or
8 any sector thereof. Such monitoring shah eemmenee at ft
9 time adequate to insure that dea wiI4 be affable whieh is
10 sufficient to permit itehieveffie nt 'o? the policies of this Aet,
11 ififer-fnation whieh the Seer-eta requires to be furnished in
12 effecting such monitoring shah be eefifidefiti4, except as pfe-
13 vided in paragraph (2) of this s seetion and in the l?ast two
14 seffteffees of section 0(-e) of this Aet-.
15 (4) The results of such m mitering shad to the extent
16 pr%etieable; be aggregated and wed in weekly reports
17 setting ?erth, with respect to each item monitored, aetttal and
18 afttieipated experts the destiflatieft by eery, and the de-
19 mestie and amide pried , and demand. Such fe-
ffwy be made m---. if theeeretar awes that
20 peftfi
21 there is to justify weekly reports.
22 (h) In imposing expert eentreis to e to the policy
23 stated in section 3(2)(A) of this Ae-t-,- the Pr-esidefit's authority
24 shah include hot net be limited to the imposition 'of expert
25 license fees-.
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1 (4(44 Netwithstmdift aey other wee of this Aet
2 a subsection (it) of section 2-8 of the
Afin-
3 eral Leasing Aet of 1920, fro defnestiea4ly produced erne oil
4 by pipellxe ever rights ef way gr-ante pur-stta
5 to section 8 of such Aet (exeept any such or-tide oil whieh
6 (A) is exchanged in similar qttatttity fef Of ie-
7 ereased effieieftey of transportation With persons Of the gov-
8 erreeeet of on adjaeent foreign std Of (-1 34 tempefar-ily
9 exported ?er of increased of
10 tatieo across parts of on adjacent foreign state ae'd reenters
11 the United States) w&y be exported from the United States,
12 its territories sod during the twoyeas wed be-
13 g ng on the date of ens nt of this Aet-,- unless the re-
14 qttir-ements of paragraph (224 of this subsection are ffietr.
15 (~} Crude oil subject to the prohibition eked in
16 paragraph (44 ffmy be exported er if-
17 (A) the President makes and pttblishes a express
18 finding that experts of such crude oil--
19 (ii will net diffliflish the total q tlty of
20 ty of petroleum available to the United
21 States;
22 (iii will have a positive effect on consumer oil
23 prices by decreasing the average crude oil ae i-
24 tine casts of refiners;
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1 (iii) wig be ffm& ett pursuant to contracts
2. .. `eh ffifty he if fihe petr-elett
sttp
se
3 Wiesof the.Uttite States ace of
4 eesly th-re ed
5 (ice} are in the national inter-est; mid
6 (4 ace in accordance with the pr-evisiefis of
7 fi i-R arid
8 GB the President reports such ?inding to the
9 Congress.
10 M the ~efigr-ess, within thifty days of eentifittetts session after
11 receipt of a report of the President under the preceding see -
12 teeee, adepts a concurrent resolution sting expressly that it
13 disapproves such expert,. the Pfesident eha4 promptly take
14 a1 necessary steps to prevent such expert Fer the purpose of
15 the pr-eeeding nee-
16 (i) eentitittiy of session is broken o by an ad-
17 jettffifftent of Congress sine die; aad
18 (ii) the days ett which either House is ftat in ses-
19 siee because of as adjettr-fime of more than three
20 days to a day certain are, exeittded in the eemputation
21 of aay period of time in whiek C gress is in eontintt
22 ette session. .
23 () Petroleum products refined in United States Foreign
24 Trade Zones, or in the United States Territory of Guam,
25 from foreign erode e4 s be excluded from any quantitative
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1 restrictions impose meant to seetion 3(2)(A)) of this
2 except t if the Secretary of Ceffiffier-ee firms t a prod
3 eet is i t eheA supply, the Secretary of Gefnffieree w&y issue
4 such des 6*4 regulations eR ffi*y be necessary to hfftk
5 experts.
6 (k4(44 The authority conferred by this seetieii A" fiet
7 be exereised with respect to any agfiettitur-a , itt-
8 eluding ?atsas4eilsof anifneA hidee Ofskins, wmettt the
9 approval of the Seer-etar-y of Pie Secretary of
10 1} ftet a ove the exefeise of such any
11 with respect to any stteit eemmedit-y ? ng fffiy per- for
12 whieh the supply of such commodity is deter-mine d by him to
13 be i t excess of the tff of the defaestie eeeneffly,
14 except to the extent the President awes th4 such exer-
15 eise of authority is required to feetidae the policies set forth
16 in sections 4} (14) of (6) of this ~ The Secretary of Agri-
17 ea ttre Aiag Bet approve the exercise of such authority
18 respect to fffly such commodity mess he has (i} gig
19 eensider-ati to the alter-native of using the Commodity
20 Cr-edit borperation to ease such eery a*4 age
21 sales to ?oreig in accordance with fihe previ-
22 sines of the Commedity Credit Ger-peratiee Charter A4 se as
1.7
23 to stabilize markets and a imize returns to agricultural pre-
24 dtteers, and (-i } dew that expert controls are pr e
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1 to sttelt ttse of the any granted by the Gemmedky
2 bream Ger-pefatieft Charter- A-4,
4 eensultatieft with the Secretary of ,
5 ~ by o fef ttse in a foreign eettntry
6 remain in the :Unite ?er expert at a later date free
7 from a off expert A ffmy be
8 imposed pursuant to section 3(2)(A) of this Aet subsequent to
9 such approval. The Seer-etar-y of Commerce ma-y not gFftftt
10 approval hereunder unless he receives adequate assurance
11 ate, with the Seem of Agriculture, ?ie
12 that such eemffiediti will e }tttally be experted, that eei-
13 thff the sale nof exper-t thereof wiI4 result in on
14 4-ftift of scarce materials and have a serious domestic it?la-
15 tiefift ifftpffet, that storage of iffeh commodities in the
16 Unite cl mates wilt not undul limit the spaee avai!Ale ?ef
17 storage of demestieally ewe eemme es, nod that the pnr-
18 pose of such storage is to estftblish a reserve of such corn
19 medities fef lam nse net including a to of use by a*-
20 outer eett y The Secretary of Commerce is authorized to
21 issue such rules nod as may be necessary to ifft-
22 plemeet this parg- h.
23 (4) Notlrng it this Aet of the roles of fegulotiefte there
24 ttfider- shall be eenstr-tte to require ittither4y of pera ett to
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1 expert, except where required by the President to effect the
2' policies set forth in section 9 of this Aet.
3 (r The delegate the power-, attther4y,
4 and discretion A (erred upon him by this Aet to such depart
5 mss,ageneies, ofoffieials of the Gover-tiffle ashes
6 deem appr-epr-ittt-e-, except that no authority under this Aret
7 fftay be delegated to7 of exercised by any effieW of any de-
8 partment or agency whose head is net appointed by and with
9 the advice and eefisefit of the Senate-
10 BOWERTS
11 S+w 5- (a)(1 For the purpose of ifat3lementifig the pak-
12 eiee set forth in seetions 84 (A) and (B)-, the Pry shah
13 issue rules and r-egulations prohibiting any Unite States
14 person, with respect to hisses in the inter-state of for-
15 eign commerce of the United States, from taking or knowing-
16 ly agreeing to takeanyof the fellowingaetiees wkh intent to
17 comply witl further, of support any boycott ?ostered of irn-
18 p&sed by a foreign ee 3` against a country wick is friendly
19 to the United motes and which is net itself the object of any
20 form of boyeett purer to United States law or
21 (} Refusing, of requiring any ether person to
22 refuse, to do business with of in the boyeetted eountry,
23 with, any business concern eked trader the la" of
24. the boyeetted eetntry, with any n tioeai of resident of
25 the boycotted country, or with affly ether person,,
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1 sttaet to ae agreement with, a of of a ft-
2 quest from or off behalf of the boycotting nee rte The
3 mere abseeeeo?abusiness felatiefiship with of in the
4 heyeetted eetifitfy with ftfly business concern organized
5 under- the laws of the beyeetted eetifitr-y, with ae ffa-
6 tional of resident of the beyeetted eountry, of with ay
7 ether person, does net ideate the stence of the
8 intent to establish o violation o?fu4esendfeg-
9 ulatiens issued to Barry net this
10 (B Refusing, of a ether person to
11 re?ttse, to employ orher-vAse disefifninating aOgainst
12 any United mates person on the basis of raee, religion,
13 ee* or national origin of that person of of an owner,
14 offieer, direeter, of empleyee of such person.
15 (9) Furnishifig i4efmati with respect to the
16 raee, religion,, ee* Of national origin of an United
17 States person of of aBy owner, officer, difeeter, of em
18 pleyee of such person
19 W ~ r-flishing infeffflati about whethef any
20 person hue; has ha4 or proposes to have ay business
21 felationship (ifieludifig a felatienship by way of sale,
22 ease, legal of a , shippin
23 of other fifansport, i~ anew stm nt, of supiply)
24 with of in *the boycotted eeeotry, with any business
25 eeoeent organized ceder the laws , of the boycotted
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1 eeuetry, with any ftatiena4 of resident of the boycotted
2 eetintr-Y,ewwitkaotherPer-Sonwhiekioknewfi of
3 believed to ke restricted from hang an business
4 tienship ofi*ebeyeettingeetintr-y. Nethin gin
5 thie paw eha prohibit the furnishing of al
6 business ' i t a eeffimer-eial eentext as de?ined
7 by the Secretary of C em?' e?c e
8 4E4 Fu flishing infer-mati about whether- 9 person ie a member- ef7 bas made eei~~butie of is
10other-w ~se asseeia.ted Nv" of kivelved . in the aetivities
11 of a of fraternal er-ganimatieft which oup-
12 ports the boycotted eetti~".
13 (} ?a g, hefiefifig, , or other-wise im-
14 pleffientift a letter of erred it wink eentains any eeudi
15 tiers of compliance with Lek ie prohi1 it
16. ed by rules and regulations issued pttfsttant to this
17 paragraph, and no United States person sly ae a
? . 18 result of the applieetion of this paragraph, be obligated
19 to pay or other-wise lamer of imps such letter of
20
21 (~} Rules and regulations.ued pmt to paragraph
22 (44 shall provide exceptions for-
23 (A complying of agreeing to eery with require-
24 meats (i; pr-ehibitin the import of goods or services
a
25 from the boycotted country of goods produced or sere
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1 ieee provided by a1 y business concern organized under
2 the laws of the boycotted country or by nationals of
3 residents of the beyeetted eenntry, of (ii) pr-ehibiting
4 the shipment of geeds to the boycotting country on a
5 carrier of the boycotted eenntry, or by a route other
6 giftn tho preseribed by the beyeetting country of the
7 recipient of the sue
8 (4) eeeaplying or agreeing to eemply import
9 ark s4ippifig deettffieflt respect to
10 the country of origin, the name of the Barrier axd route
11 of shipment, the name of the supplier- of the shipffient
12 of the name of the provider of other services, except
13 that ee ' knowingly fttr-flished or eeeveyed in
14 response to such tfi may be stated in nega-
?15 tip blaeklisting-, or similar e~~ittsie-Rar-y terms on or
46 after dune 1978, ether than v4h respect to earri-
17 ere or route of shipment as may be permitted by such
18 roles axd in order to comply v4h preea
19 tieoarY protecting against war risks and
20
21 (-Q4 eemplying or agreeing to comply in the
22 normal course of bttsiness vAth the unilateral and spe-
23 eifie selection by a boycotting eery; or flatiefift! of
24 resident thereof, of Barrier ,\ insw-ems, suppliers of
25 ieee to he pe. within the beyeettin g country or
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1 specific goods whieh, in the normal course of business,
2 a+e identifiable by source when imper-te into the boy-
3 eefiting eett
4 ( eemplying of agreeing to eery with expert
5 of the boycotting ee yr-elatingtoship-
6 ffients of tr-afisshipm of expels to the boycotted
7 eettntr-y, to fffly business concern of of organized under-
8 the laws of the beyeatted esuntry, of to aoy national
9 of resident of the boycotted eetunfiry;
10 (E} compliance by att individual of agreement by
11 an indivi4tial to eemply with the if of pass-
12 of any country with respect to such
13 individual of any member of such ' ?amily er
14 with requests ?er ? regarding re ee s Of
15 empleyffien of such dal within the boycotting
16 eeuntry; and
17 W} eemplianee by a United mates. person resident
? 18 in a foreign country of agreement by such per-soft to
19 eemply with the law-a of th4 nett y with respect to
20 Iris aetiiirities exclusively therein,, and such rules and
21 eentaiff exeeptiens ?er such resident
22 eemp g the s of ~ gulatiens of t foreign
23 eettfitr-y governing imports i o such country of 24 ma ked; , of idetrade
nti?i-
25 able mss, of eempefiefita of products ?ef Iris own
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including the pernee of servi
2 witer,ae ffmy be define by such rules
3
4 (9) des aed regulations issued pursuant to paragraphs
5 (2)(C) as (94F3 shall eat prowe exceptions from par-a-
6 graphs 44F4
(4) Nothing i t this subseetion ffmy be construed to su-
8 persede of litho the operation of the antitrust of eivil rights
9 lamas of the United des.
10
(6) Rules and' pursuant to this subsection
11 shall be issued eat later than 00 days after the date of enact
12 meet of this section and shall he issued in final form and
13 beeeme effective not later. than 440, days after t are ?irst
14
15
16
issued, except that (A4 fu4ee and rep; Lions prohibiting eeg-
ative take effect net later than 4 year after
the date of ~ etment of this seetion,, and (B) a grace perted
17 shall be provided fef the applieetion of .the rules and regula
18. tions issued pursuant to this subseetion to aetions taken pnt -
19
20
start to a written eentmet of ewer agreement entered into
on of before May 4-6 1977. SffA grace period shall end on
21 per 47 1978, except that the Secretary of wee
22 ffmy extend the grace period fef net to exeeed 4 additional
23
24
year in any ease in which the Secretary finds that good faith
t
efforts are being made to r-eftogetiate the eentract Of agree
25 fnent in order to eliminate the whieh are ineensist
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1 ent With the rules and r egtrla#iens issues pttfstia#t to. para
2 graph }} ,
3 (6).Ptiia Act shall . apply to any transaction of aetivity
4 undertaker, by er through a United des of ether person,
5 with intent to evade the previsions of this. Aet as implement
6 ed by the rules and. issued per-suant to this, stth-
7 seetion,,, and sueh. rules and a .expressly pre-
8 vide that the exceptions set ?erth in paragraph (-) shall net
9 permit Mies of agr-eementa (expressed of implie by a
10 course of eenduet, ifig a pattern of responses) ether-wise
11 prohibited, which are net within the intent , of such
12 exeeptions
13 (lam} In addition to the rules and r-egttlatieiis issued
14 suant. to subseetion (a4 of this fir, rules and f~gttlatiens
15 issued. under.seetien 4(h} of this Apt shall implement the poh-
16 eies set forth in section
17 (2-} ,Such rules and r-egulations shall require that any
18 United States person receiving a request ?er the furnishing of
19 , the entering into of ' of agr-eements,
20 of the taking of any ether action :referred to in section S(h}
21 shall report that fact to the Se 3` of Commerce, together
22 with stteh ether., ' such request as the
23 Secretary require fef, such action as he may deem appre
24 priate . ?er parrying e4 the policies of.. that section.. Such
25 person shall also report to the Seems of Co erect
S. 737--3
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1 - he intends to eemply.'an4 -tom he hftff complied
2 with such request. report ?6e4 pursuant to this par-a
3 graph a?ter the 4*t-e of enact' of thia section shall be
4 male' a"il"Ie promptly ?ef die inspection at4 copy
5 except Omt rr-egar-dift the qttafi4y, ,
6 aae va#re of aey geeds of technology to whieh such report
7 relates fafty be kept if the Seeretar-y awes
8 014 disclosure thereof would place the ~ States per-se-ft
9 involved at a ' eempe e disadvantage-. Pte' of
10 Commerce shall periodically transmit su Of the infer-
11 mation in ffiteh reports to thegeer-of State fef
12 ffl*eh aetionasthe Seer-etezr-y of State, in eensultatieff with
13 the Spy-of Commerce, deem appropriate fer carry
14 ing eta the policies set forth in eetiee ) of this
15 PROORI)UR I P F FROM EP6R IF
16 E
17 no. 6- (a} Any person who, i t his domestic manu?ae-
18 t g process of ether demesti~ business a ion, utilises a
19 met pr-edtiee abroad in whole or i t part from a eetnffled
20 historically ebtaifted from tM:Vnited States btt whieh has
21 been oracle subject to expert eeetrels, of any person who
22 historically has exported such ft~ , ffffiy transmit a
23 petition of hardship to the Seei~tar-ye? e4 e reqtt~ Sting
24 an exemption ?reer such controls in order ' le alleviate any
25 trnigtte hardship resting ?rom' the imposition 4' eon
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35
1 gels: A petition tti ler this section shall be in such form as
2 the Seems of Gemmer-ee A+ag prescribe ae4 sha4 eentain
3 demenstfartiffirs- the need- fef the relief requested..
4 (b) Net layer tha* thirty days after receipt of any peti-
5 tier tinder subseetion (ft)-, the Seer-etejr-y of wee shall
6 transmit a written decision to the petitioner granting of
deny- 7 ing the requested Meier ,tteh deeision shall eentai e state
8 metrt setting Perth the basis fef the grant of
9 denial. exemption granted may he subjeet to such een1i
10 tiers as the Secretary deems .
decision
11 (e4 For purposes of this seetieft, the Seeietttfy'a
12 with respect to the grant of denial of relief from time hare-
13 strip rig directly Of indirectly from the imposition of
14 controls shall reflect the Seer-etafy'ff consideration of such
15 factors as
16 (1-) whether denial wenld eatise e unique hardship
17 to the petitioner which can be alleviated only by grant
? 18 ing an exception to the applicable . In de-
19 termining whether- relief shall be granted, the Seere
w
20 tarp will take irate account:
21 (A ownership of material ?er which there is
22 netpr-ftetieable deffiestie market by vir-ttteof the
23 location of nature of the material;
24 (B) potential serious financial less to the ap-
25 plieant if net granted an exception;;
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1 ( } ioal to obtain, eaeept through
2 apt item essential . ?ef domestic ttse whieh
3 is predtee mead from the eemmedity antler
4 eetel;
5 (D} the extent to whie denial would een?liet,
6 to the particular detriment of the applicant, with
7 other national policies ineittding those refeeted in
8 and inter-flatieft agreement to which the Ui4te
9 States i s a pafty;
10 (F possible averse effects of the economy
11 (ineittdift in ai+y locality Of regio t
12 of the United States; a
13 (} other relevant ?aetors, including the ap -
14 plieant's I"k of an , exporting mastery during and
15 base period that ffffiy be established with respect
16 to expert "ttecae ?er the paftiettlar- see a*d
17 () the effect a finding i t ?a-,or of the applicant
18 wettld have on attainment of the basic objectives of the
19 short sttpply control program.
20 In all eases, the desire to sel at higher prises acid thereby
21 obtain greater profits will not be considered as a eeee of a
22 unique baf dship, nor will eir-ettffistan -- the hardship is
23 dice to imprudent aets or failure to act of the paA of the
24 petitioner:
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AND sqp*Nf)*RBB
1
2 SEe: W In detennining -t shall be contrelled of
3 monitored tmder- this and in deter-mining the extent to
4 whieh experts s be limited, and , agency, of
5 official making these deter-minati s Seed
6 an4 adviee from the several ewe depaftfflen and inde-
7 pendent ageneies eeneernec with aspects of ettr domestic and
8 foreign policies and operations having an important bearing
9 en experts. Such depar-tmen and ageneieis shah fu 4y
crate in rendering such advice and ifAer-matieffi, Consistent
11 of national seettrity, the Ffesident shah
12 from time to time seed infefmatiefi. and adviee-, ?rom various
13 segments of private industry in connection with the Making
14 of these deter-fainati . In addition, the Shy of b em-
15 meree shah eensult with the Secretary of Energy to deter
16 mine whether, in order to effeetuate the pokey states in see
17 Lien 3(2)(A) of this monitoring of controls are necessary
18 with respect to experts of faeiiities, Of equipment
19 nay and principally used, of i ntende to be used, in the
e? ?ttels and energy
20 production, , Of
21 (except nuclear energy), including bi*t net limited to, Wiling
.22 rigs, plat?orms, and equipment; petroleum -? s natural
23 -gee liquefieatiwi-, and gasifieatiefl. plants; facilities
24 ?f production of synthetic natural gas of synthetic crude oil;
'25 oil and gas felines, Plaffipifl l ions, and associated egtiip-
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1 t tent; and vessels ?ef transporting eil . gas; seal, and other
2 ?ttels.
3 ;1*aa~er-igingexperts, fttR tAilizationof pr-ivate
4 competitive fide channels shall be eneettr-aged insofar-
5 pr-aetieableT giving a to the interests of ffiF&H
6. business, fner-ehaint exporters as well as predueer-s, and estab
7 lished and new exper-ter-s, . ate. provision shall be made fef
8 t o eensultatien to that e *& It addition,
9 there ma-y be applied such other standaMs of criteria oe fftay
10 be deemed necessary. by the head of such depaftment-, of
11 agency, ew o ieial to Barry out the policies of this Act.
12- . (-9} Upon imposing qttantitatiwe regions on exports of
13 any goods of technology to .easy ettt the peliey stated in
14 section 3(2)(A) of i s A-e-t-,- the Seer-etar-y, of free shall
15 inelttde in the netiee published in the Federal Register air
16 invitation to all ied parties to sttbfnit written corn
17 Wis. vAthin. fifteen days from the date of pttblieatieft of the
18 impact of such r t ietions aa4: the methe of licensing used
19 to implement them.
20. 3 Upon men request by represent& Off, stt4-
2t stantial segment of afry indttst which produces geeds of
22 technology which are sttbjeet to expert eentrols. er are being
23 eensidered ?er such controls heeatrse of their signifiemee- to
24 the national security e? . the, United mates, 4 he Secretary of
25. Gemmer-ee shall appoint a. teehnieal advisory , . i. fef
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1 ate gig of etwh goods or technology whieh he deter
2 fflines .io di??iettit to ewe because of
3 teehnieal. matters, were availability and aetual utihoff
4 tiee of production and teehnelegyF of licensing .
5 Each ffl*eh committee s eeesist of represent& of
6 United States industry aed , ifteitt6fig, the Do-
7 partments of wee Defense, affid . at4 when ap-
8 preprtate, ether Government and agencies. No
9 persee serving oft aty such eemmittee whe ie
10 of industry shal serve oft such eemmittee ?er. more thftn fetkr
11 eettseetttiw years.
12 (.'1) [ s he the du+y and ?tmetie of the technical
13 misery ., eemmitteeff established, under paragraph (44 . to
14 advise a- Rd the Seefetafy of sec and offiy. ether
15 , agency, of official of the Government of the
16 Unite Ed States to whieh the President etas delegated power,
17 a erity, and diser-etieft, under section 4(e} with respeet to
? 18 aetiefts designed to Barry eiit the policy set forth in section
a
19 of this Such mittees, mere t have expertise in
20 such matters, s#all be emoted with respect to questions
21 involving (nos (~ worldwide availability
22 and actual titilization of production teehnelegyF (b-} licensing
23pfeeedttr-es whisk affect the .few of export controls appliea
24 Me to any goods or teehttelegyT a *d ~D4 experts subject to
25 mater-al controls in whisk the Unite States par-tieipatea
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1 including pr-epesed revisions of such multilateral eentrols.
The Sew shall inelude in each repeat required by section
3 44o?t Aet aft accounting o?the
4 pttfsttafit to this paragraph, the nee made of the advice ren-
5 by the technical advisory committees pmt to this .
6 and the eenty-ibutie of the tech . misery
7 itt? to etA the policies of this A-et-. Nothing
8 in this subsection shall prevent the .Seereta-fy from eensult
9 ing at any time, with any per-see representing ifidustr-y of
10 the general public regardless of whether- such person is a
11 tether of a teehnieal advisory tee. Members of the
12 ptihlie shall he given o r , .mat to
13- r-egulatiefts prescribed by the, Secretary of gemmer-eeF to
,
14 present evidence to such committees.
15 (34 Upon request of any member of fffly each committee,
16 the Seeretar-y n if he'd es it , r se
17 such tnetnber ?er travel, subsistcn and ether necessary e-
18 penses ifiettOr-ed by him in connection with hie duties no
a
19 metier: ~..
20 ( Each such eeee shall ' elect .a
21 shall meet at least every three moths. nt the e&ll of the
22 unless the a t s, in
23 with the other members of theI eeffimittee; that step a meet
24 ing in net necessary to aebieve the purposes of this Act. Each
25 such eefflffiittee shall be ter-fAinated a?tet a period of two
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1 years, ttnless extended by the Secretary ?er additieflO Per-iods
2 of we years. The Secretary shah eene t each such eemfnit
3 tee with regard is such ter-miffatieft er- extension of fi
4 wee
5 (94 Te facilitate the work of the technical any eer
6tees, the Secretary of C
7 other ht the adfainis
8 tr-atien of this shall diselese to eat gee a4e-
9 gttate nt with natiefial e+eee-r? pertain
10 ieg to the reasons fef the expert controls whieh are in effect
11 Of eentemplat ?er the grouping of geeds of technology with
12 respect to Leh that committee fur-ftishes a ce.
13 (6)Wheneverft teeknieal adNiser- eee6r-tifies to
14 the Secretary of Free that geeds of technology have
15 beeeme of wi4 iffiminently become awe in ?ae1 from
16 settees ewe the United des quantity and of
17 quality ee es to render United States expert eei-
18 trek e e in achieving the purposes of e Aet; and
19 pre ee adequate deettmenta ?er -et=ch ertifieatief the
20 Secretary of wee shah either retrieve expert controls
21 en erteh- geeds of technology of sttbmit a r-eeemmendation to
22 the art regarding the ter-fninatieft o of
23 such eentrols.
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VIOLATIONS
1
2 Ec.& }Exeept a~sprovide d sttbseetiefi (b}of thia
3 fir, whoever knowingly violates amy pr-evisiefk of this Aet
4 of any regttlatien, order, of license issues thefetindef Aift4 be
5 fined net more t haft $ 5,000 Of imprisoned #et more than
6 one year, of F-of a seeend of subsequent offense, the
7 offender s be fined net more than three times the value of
8 the experts involved of $50,000 whiehevef is greater, of
9 impriserted not more drat t five years, Of both
10 }Whoever wilifully experts anything contrary
11 provision of this Aet of any regulation, girder, of lieense
12 issue ch thereunder, knowledge thftt such exports wiI4 be
13 used for the benefit of any eettntfy to whieh experts are re-
14 strieted for national seettfi~y of foreign pehey d es, ski
15 be fined fiat e e therff fine tes the matte of the experts
16 involved of $50;00-per is greater; Of itepf}setted net
17 mere than fine years, of both.
18 (e)(4) The head of any depaftment. of agency exercising
19 any functions tinder this A-et-, of. any a ieer of . employee of
20 stte . of ageee designated by the
21 head thereof, ffmy impose . a-, ei 41 penalty net to exeeed
22 $10,000 for each violation. of this Aet of any ,
23 order, of license issued under this Ant, either in addition to or
24 in lieu of airy other liability or penalty whieh moy be
25 imposed.
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1 `22)(A4) The authority ender thiB to s of
2 revoke the of axy Unite States person to expert
3 goods er technology fftay be utsed. with.,r-espeette any viola
4 tier of the rules ande, ~t to. seetiee
5 O rie Ae~
6 (B} Ally administrative saeetien (i wly eivil pee-
7 a of any er. reveeatiee of authority to expert)
8 imposed ender this Aet fef a violatiee of the rules and regela
9 fi sissue pursuant teeeetien6Ea;OfthieAc4 ffmy be
10 peeed only after notice and oppeftunity ?er an aged hearing
11 off the reeor in accordance with sections 554 through 647 of
12 title 5`; Unite mates bode.
13 (C4 Any ehafging letter of ether document iftitiating a,&
14 for the imp s of s ieee for
15 violations of the rules , a d regulations issued pursuant to see-
16
tine b(e) of this Aet shall be made available ?er. public i
ee-
17
ties end eel ,
18
(ET) The payment.ef.enypenaky}fnpesed pufsttant to
19. subseetien (e). ffffiy be made a. eenditierr for a period net en-
20 needing one year after the imposition of such penalty, to the
21 stor?tion, of eentifittift validity of any expert li-
22 eense, permission,, er pr vilege greeted er to be granted to
23 the person such penalty is imposed., In addition,
24 the payment of any penalty imposed ender subsection (e4 m*y
25 be defer-r-e or suspended in whole or iftpar4 'fore period of
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1 time ne longer than any probation Period (- eneeed
2 eee year) be osed u per-sen. Such a
3 deferral of suepeesiee shall net operate ae ft ba to the eellee
4 tiee of the penaky in the e the conditions of the
5 suspension, deer of pr ation are net ?ialfilled.
6 (e) A*y amount paid in of any Penalty nt-
7 Posed pursuant to subsection (e} shall be eevered into the
8 Tay an a miscellaneous reeeipt. The lead of the depart
9 meat of ageney concerned may, in his Mien,, refund any
10 such pettalty, within two years after Payment, en the ground
11 of R. material e of foot or law in the esition. Netwith
12 sag seetion 4 of title United States Code, no
13 aetion ?er the fefttfl of any such penalty tflay be fflaintaitied
14 ie any eeurt.
15 (#3I* the event of the ?a ureo?affiy person to I+ay ft
16 Penalty unposed Pttfstt"t to subsection (e) a eiI ashen for
17 the recovery thereof may, in the discretion of the Bead of the
18 department. of agetrey eeneer-fted, he brought in- the name of
19 the United States. In any such action, the ee4r-t s
20 mine de neve all issues necessary to the establishment of
21 lam-Except as provided in this subsection and .ie. subsee
22 trier (d); no such liability shall be. asserted, claimed, a reeev
23 eyed upon by the United des in any vvay unless it has
24 pr evieuq' been reduced to jtdlgment.
25 (g~ Nothing in subsection or (t) limits
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1 (} the availability of e of ju&
2 ei4 remedies respect #,e violations of #h-is Aet, of
3 aiy regulation,, order-, of license issued miler this
4 (2) the ft-ftther4y to ' asettle admift
5 istr-ative pr-eeeedinga brought respect to vas
6 of this Ae4; of a order, of license issued
7 der iris of
8 (4) e authority to , remit of mitigate
9 seizures aod forfeitures pttfstiant to section 4(b) of tide
10 4e?theA4 of June4 1917 (12-9 U.S.G 401(b)).
11 HNFOReEMENT
12 9- (a} To the eft necessary or appfepfiat-e to
13 the enforcement of this Act of to the imposition of arm penal
14 t frme, of lia-bili a~g der the Expert Pentfol
15 Act of 1949, the head of any or agency exereis-
16 ing any function (ae4 officers of employees of
17 depaftment. of agene designated by the
18 head thereof) may make such investigati afid Obtain such
19 from, feqttife such repor=ts Of the keeping of each
20 records by; make such inspection of the books, reeerds, arid
21 ethers, premises; er. property of and take the sworn
22 testimony of-, aay per-son. [n addition, such officers Of em-
23 pleyees may adfaiflister- Oaths of , an4 may by
24 subpen require ai+y person to appear a testify of to appear
25 ar produce books, reeerds, ar ether writings, of both-, ao4
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1 iii the ease of eentufliftey by-, of refusal to obey it 8413en
2 issued to ay such person,, the distriet court of the United
3 States ?ef aoy district i t whiek such person is found eu ft-,
4 sides of transacts business, upon i , and after notiee
5 to aty such person a td hearing, shall have jufisdietiefi to
6 issue au efdef ~equir-ing s person to aid gee testi-
7 meny of to appear ftn4 produce books, reeerds, a outer
8 Wings, of teeth,, a*d'ainy failure to obey such order of the
9 court ffffiy be punished by such court as a eefitempt thereof.
10 (b) No per-soft shall be excutsed from eemplying with fffly
11 tff under this section because of his privilege
12 against , bat the immunity provisions of the
13 Cemptilsefy Testes Aet of Febfuar-y 444 (27 Staff
14 443; 49 46) e64 app~y with respect to aoy individual
15 who speeifieOly claims such privilege.
16 (e) Exeept as other-wise provided by the third sentence
17 of section ) a-Rd by seetion 8(e)of this Ant, infer-
18 matien obtained under this A-ot-, whieh is deemed eenfidential
19 or with reference to which a request treat
20 ment is made by the person ?tr-nishing such . , shah
21 be emenipt from disclosure under section 562(b)(3)(B) of title
22 b, United States Code, akd such ' shall not be*
23 published of disclosed unless the Shy of Commerce de-
24 tomes that the v4thheldin thereof is net ry to the fift-
25 tional =nterest. Nag in this Aet shall be eo~d as on-
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1 ther-iziA the withheldifig of from Congress, anel
2 all ' obtained at any time under this Aet Of pr-
i-3 one Acts the control of experts, any
4 report or lieense applieatien reelnired under seetien 4(a), shall
5 be made available upon request to any comae of subeen3-
6 mittee of Congress of . No such eom
7 mittee or .b? itte shall disclose and ittfqfmatieffl- eh-
8 taieed under this Aet or previous Acts regarding the control
9 of experts whieh is submitted en a eeftfideiitial basis unless
10 the ?nll committee domes that the withhelding thereof is
11 contrary to the national rest.
12 ~ (4) In the administr-at of this Act, reporting re e-
13 tents shall be se designed as to reduce the eest of reporting,
14 reeerdkeep4t-, and expert deetimenta required ufidef this
15 Aet to the extent feasible consistent e??eetii a enforce
16 meat and of useful trade st tisties. Reporting,
17 reeerdkeepi and expert documentation tff shall
18. be periodically reviewed and revised in the light of develop
19 rents in the field of ' . -A detailed state-
20 fnent with respect to any aetien taken in eemplianee with this
21 subsection shall be included in the report required by section
22 44- of this
23 fie} Phe Secretary of
Sommerce in
El tie fl.. with a -
24 prepriate United States Government and agen
25 eies and with appfepfiftte to ieal advisory
eemmit es-
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1 tablished under- section shall review the rules fiffd regtt-
2 latieFis issued tuFider this Aet. aftd the lists of goods aRd teeh-
3 Fielegy whisk afe subject to expert controls in order to deter
4 mine how compliance with the provisions of this eaR be
5 ?aeilitated by siffipiif~iftg such rules and r-egulationsT by aim-
6 plifying of clarifying such lists, or by any other meaFis. The
7 Secretary of wee shall to Congress
8 on the actions taken on the basis of such review to, s li?y
9 such rules and . Such reports fftay be ineluded in
10 the repert required by seetion 44 of this
11 EXEMPTION FROM e RHI,*TING +0
12 ADMINISTRATIVE PROORDURP AND JUDIOIAE REVIEW
13 Sne. 44. The h iees exercised under this Aet shall be
14 subjeet to the provisions of sections 551, 553 through 55
15 a #~~ of t, e 5 ~ States Code, eiEeeptifi
16 those eases desefibed in re ions prescribed by the Seero
17 tay of C eree .. of such p
18 would be itteensistent with the yeses of this feet, btA such
19 regulations ffffiy not atply to any ease described i t seetion
20 8(e)(2) of 9(e3 of this feet:
21 ANNUAL REPORT
22 SE 44- ( The Secretary of Cemffier-ee shall make an
23 awl pert to the Pmt and to the Gengfess o .his
24 operations h Fir
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1 (b444 Each such report s ineltide summaries of the
2 eentaine in the reports required by section
3 4(e)(2) of thiia Ac~, together vAt-h ae his byte Seems
4 of Co e of-
5 (A} the irnpaetoft the eeeftemy andworidt"deof
6 shortages of increased priees fef goods ftftd technology
7 subjeet to monitoring under this
8 (F4 the worldwide supply of such goods and tech-
9 neiegy; and
10 (94 aetiefte takeft by oth-ef nations ie response to
11 such skier -ages er increased prices.
12 (2) Each such report shall else contain an analysis by
13 the Seems of Comm ee of---
14 (fir} the impact on the economy trade of
15 shortages of Wised prises ?er commodities subject
16 to the rig t-R of section 84-2 of the 4g-
17 fiettitufft! Aet of 1970;
18 (B) the ~er-ldwide, supply of such commodities-,t
19 aid
20 (?) actions being taken by ether nations in ce-
21 spense to such shortages of increased prises.
22 The Secretary of shall ?&4y cooperate with the
23 of wee in providing all ififefmation. required
24 by the Secretary of wee in miming such his.
25 (0 Each such report shall include
S. 737--4
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1 (4. Pfeee4wra4 ehanges ie-
2 ff6ttited, any feviews tifider-ta4efiT ftfid a means used
3 to keep the - sector of the Nation ie?ermed,
4 pttfsttaftt to seetiae 4(a of thiff A-et-;
5 (24 anye gesiethee~Eefeiseofthe ?wee
6 of seetiee 4(b) of this A;
7 (g}fffty &.k-gfttjef,-R e?auther-ity u*def.seet-iee4(e}
8 Aet-;
9 (4) to tispositiee of expert lieense ftpplieatieog
10 pttr-sttaiit to seetiee 4 (g3 a(h e? tis Aet-;
11 (-6} consultations undertaken with teehnieal a4Ni-
12 sew minees pttf!sttaftt to section 7-(e} of eefft 13 (6) ~Vielfttiefls of thep ions e?tisA4 and
14 penalties imposes pttr-sttaftt to seetiee 8 of this
15 ftftd
16 (7) adeseriptie-B.. of actions take-ft by the ]President
17 athe Secretary of Commerce to effect the policies
18 net fo in seetie 45) of this Ac~
19
20 SE~e:4 AsusediethisAct
21 (1) the ter-fft "pefsen" ifteltides the singtilaf ftftd
22 pitir-al and a ,
23 of ether form of ? atio?, Ong a
24 of fey thereef
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1 the term "Unite States person" means any
2 United States resident of national ( o t h e r t h a n an i i-
3 vidual fesident outside the United States an4 efitpleye
4 by othef than a United States person), any domestic
5 concern (inn ing any per-fflaftefit domestic establish
6 meet of any foreign eeeeern) aad any foreign subsidi
7 ary of affiliate (ineltt4iiig any jper-ffianeiit foreign estab
8 lishffieftt) of any deffiestie eeaeern whieh is led
9 ii ?aet by such domestic eoeeern, as area oiler
10 regulations of the Pfesident;
11 (3) the term "goods" means an a tiele, Material,
12 Supply Of ffifffittfaetti ea prehtret, i-fleittdiiig inspeetion
13 and test egtt~t, and eaeitt4ifig technical and
14 (4) the term " " means the infer-mftfiefi
15 and know how that eau be used to design, pfeduee,
16 ?faet??fe Vie, of reconstruct goods, ifieltt~ing
17 computer software and teehnieal
18 EFFEeTs ON OTHER A@IFS
19 S*e 4& (a} The Aet of Febfttafy 4-& 49 Star.
20 y y~ relating to the lieensing of emits of tinplate see, io
21 hereby mod; bt4 nothing eeetained in this Aet shall be
22 construed to modify, repel supersede, e+ other-wise a4ec4
23 the provisions of any ether laws atither-izifig eentfel a e--
24 ports of a
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1 (b The any granted to the Pfesi this
2 Aet shall be exercised in itteh aeteezehievee??eetive
3 eel with the attthefity exercised 44-
4 of the Mutual Ai7et of 44" (U.S.C. 1934).
5 OF A TTTI~TTT A TTII ETC AUTHORiZATRW 6 SEe, 4 (a) ate ether provision of
7 des appr-opfiati s be ffm& to the
pttf-
8 of Tee ?e- expenses to eat e4 the
9 poses of this A,-t ?er any ?i-Real year OR Of after
10 October 4 1980, mess a
11 iz-ed by 12 () legislatieti.
'VII. -11. Aftt
There areauthorized tobe to the
13 went of Ceffiffier-ee X000,000 and such anal
14 ametints es ffifty be necessary ?ec increases i t sftlafy, pad`
15 other employee beftefits aid by law-, end
16 other flefidiser-etieflafy eests) ?ec fiscal year 1980 to eat eta
17 the purposes of this -et, of whiek $1,260,000 s be availa
18 Me only ?ec the Office of Foreign et a
19 ^ nt.
20 EFFEWHIVE DATE
21 Sc. 4-& (a) This Aet takes effect upon the expiration of
22 theme Administr-a Ac4 e?4969
23 (b) A-11 eutsteondifig , rues, ,
24 er-defs, lieenses, of of of forms of ad stra action ruder=
25 fiheExpeft Centfol A4 of 1949ocsection6of theAc4 of
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1 July 1040 (4 Sta-t-. 714, of the ERPef Admiflistf-ft
2 Aet of 44W A +a4-, ffftW amende of revoked, remain 41 fl
3 force ei4 effect, he same ae if promulgated ~ thiia A-4.
4 E
5 SEe: 4 T#e authority granted by thiR A~et es
6 e X80; 1988, of u any pfiff he
7 Pr-esidefit by proclamation may desigttate.
8 That this Act may be cited as the "Export Administration
9 Act of 1979".
10 FINDINGS
11 SEC. 2. The Congress makes the following findings:
12 (1) The ability of United States citizens to engage
13 in international commerce is a fundamental concern of
14 United States policy.
15 (2) Exports contribute significantly to the balance
16 of trade, employment, and production of the United
17 States.
18 (3) The availability of certain materials at home
19 and abroad varies so that the quantity and composition
20 of United States exports and their distribution among
21 importing countries may affect the welfare of the do-
22 mestic economy and may have an important bearing
23 upon fulfillment of the foreign policy of the United
24 States.
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1 (4) Exports of goods or technology without regard
2 to whether they make a significant contribution to the
3 military potential of individual countries or combina-
4 tions of countries may adversely affect the national se-
5 curity of the United States.
6 (5) The restriction of exports from the United
7 States can have serious adverse effects on the balance
8 of payments and on domestic employment, particularly
9 when restrictions applied by the United States are
10 more extensive than those imposed by other countries.
11 (6) Uncertainty of export control policy can cur-
12 tail the efforts of American business to the detriment of
13 the overall attempt to improve the trade balance of the
14 United States and to decrease domestic unemployment.
15 (7) Unreasonable restrictions on access to world
16 supplies can cause worldwide political and economic
17, instability, interfere with free international trade, and
18 retard the growth and development of nations.
19 (8) It is important that the administration of
20 export controls imposed for national security purposes
21 give special emphasis to the need to control exports of
22 technology (and goods which contribute significantly to
23 the transfer of such technology) which could make a
24 significant contribution to the military potential of any
25 country or combination of countries which would be
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1 detrimental to the national security of the United
2 States.
3 DECLARATION OF POLICY
4 SEC. 3. The Congress makes the following declarations:
5 (1) It is the policy of the United States to mini-
6 mize uncertainties in export control policy and to en-
7 courage trade with all countries with which we have
8 diplomatic or trading relations, except those countries
9 with which such trade has been determined by the
10 President to be against the national interest.
11 (2) It is the policy of the United States to restrict
12 the ability. to export only after full consideration of the
13 impact on the economy of the United States and only
14 to the extent necessary-
15 (A) to prevent the export of goods and tech-
16 nology which would make a significant contribu-
17 tion to the military potential of any other nation
18 or nations which would prove detrimental to the
19 national security of the United States;
20 (B) to further significantly the foreign policy
21 of the United States or to fulfill its declared in-
22 ternational obligations; and
23 (C) to protect the domestic economy from the
24 excessive drain of scarce materials and to reduce
25 the serious inflationary impact of foreign demand.
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1 (3) It is the policy of the United States (A) to
2 apply any necessary controls to the maximum extent
3 possible in cooperation with all nations, and (B) to en-
4 courage observance of a uniform export control policy
5 by all nations with which the United States has de-
6 fense treaty commitments.
7 (4) It is the policy of the United States to use its
8 economic resources and trade potential to further the
9 sound growth and stability of its economy as well as to
10 further its national security and foreign policy objec-
11 tives.
12 (5) It is the policy of the United States-
13 (A) to oppose restrictive trade practices or
14 boycotts fostered or imposed by foreign countries
15 against other countries friendly to the United
16 States or against any United States person;
17 (B) to encourage and, in specified cases, re-
18 quire United States persons engaged in the export
19 of goods and technology or other information to
20 refuse to take actions, including furnishing - in f or-
21 mation or entering into or implementing agree-
22 ments, which have the effect of furthering or sup-
23 porting the restrictive trade practices or boycotts
24 fostered or imposed by any foreign country
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1 against a country friendly to the United States or
2 against any United States person; and
3 (C) to foster international cooperation and
4 the development of international rules and institu-
5 tions to assure reasonable access to world sup-
6 plies.
7 (6) It is the policy of the United States that the
8 desirability of subjecting, or continuing to subject, par-
9 ticular goods or technology or other information to
10 United States export controls should be subjected to
11 review by and consultation with representatives of ap-
12 propriate United States Government agencies and pri-
13 vate industry.
14 (7) It is the policy of the United States to use
15 export controls, including license fees, to secure the re-
16 moval by foreign countries of restrictions on access to
17 supplies where such restrictions have or may have a
18 serious domestic inflationary impact, have caused or
19 may cause a serious domestic shortage, or have been
20 imposed for purposes of influencing the foreign policy
21 of the United States. In effecting this policy, the
22 President shall make every reasonable effort to secure
23 the removal or reduction of such restrictions, policies,
24 or actions through international cooperation and agree-
25 ment before resorting to the imposition of controls on
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1 exports from the United States. No action taken in ful-
2 fillment of the policy set forth in this paragraph shall
3 apply to the export of medicine or medical supplies.
4 (8) It is the policy of the United States to use
5 export controls to encourage other countries to take im-
6 mediate steps to prevent the use of their territories or
7 resources to aid, encourage, or give sanctuary to those
8 persons involved in directing, supporting, or participat-
9 ing in acts of international terrorism. To achieve this
10 objective, the President shall make every reasonable
11 effort to secure the removal or reduction of such assist-
12 ance to international terrorists through international
13 cooperation and agreement before resorting to the impo-
14 sition of export controls.
15 (9) It is the policy of the United States to cooper-
16 ate with other nations with which the United States
17 has defense treaty commitments in restricting the
18 export of goods and technology which would make a
19 significant contribution to the military potential of any
20 country or combination of countries which would prove
21 detrimental to the security of the United States or to
22 the security of those countries with which the United
23 States has defense treaty commitments.
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1 AUTHORITY
2 SEc. 4. (a)(1) To the extent necessary to carry out the
3 policies set forth in section 3 of this Act, the President, by
4 rule or regulation, may prohibit or curtail the export of any
5 goods or technology, or for the purpose of section 5 in forma-
6 Lion, subject to the jurisdiction of the United States or ex-
7 ported by any person subject to the jurisdiction of the United
8 States. To the extent necessary to achieve effective enforce-
9 ment of this Act, these rules and regulations may apply to the
10 financing, transporting, and other servicing of exports and
11 the participation therein by any person. In curtailing exports
12 to carry out the policy set forth in section 3(2)(C) of this Act,
13 the President is authorized and directed to allocate a portion
14 of export licenses on the basis of factors other than a prior
15 history of exportation.
16 (2)(A) In administering export controls for national se-
17 curity purposes as prescribed in section 3(2)(A) of this Act,
18 United States policy toward individual countries shall not be
19 determined exclusively on the basis of a country's Commit-
20 nist or non-Communist status but shall take into account
21 such factors as the country's present and potential relation-
22 ship to the United States, its present and potential relation-
23 ship to countries friendly or hostile to the United States, its
24 ability and willingness to control retransfers 'of United
25 States exports in accordance with United States policy, and
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1 such other factors as the President may deem appropriate.
2 The President shall review not less frequently than every
3 three years in the case of controls maintained cooperatively
4 with other nations, and annually in the case of all other con-
5 trols, United States policy toward individual countries to de-
6 termine whether such policy is appropriate in light of the
7 factors specified in the preceding sentence.
8 (B) Rules and regulations under this subsection to
9 carry out the policy set forth in section 3(2)(A) of this Act
10 may provide for denial of any request or application for au-
11 thority to export goods or technology from the United States,
12 its territories and possessions, which would make a signifi-
13 cant. contribution to the military potential of any nation or
14 combination of nations threatening the national security of
15 the United States if the President determines that their
16 export could prove detrimental to the national security of the
17 United States. In administering export controls for national
18 security purposes as prescribed in section 3(2) (A) of this Act,
19 priority shall be given to preventing the effective transfer to
20 countries to. which exports are controlled for national security
21 purposes of goods and technology critical to the design, devel-
22 opment, production, or use of military systems which would
23 make a significant contribution to the military potential of
24 any nation or nations which could prove detrimental to the
25 national security of the United States. The Secretary of
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1 Commerce, in consultation with the Secretary of Defense,
2 shall review and revise not less frequently than every three
3 years in the case of controls maintained cooperatively with
4 other nations, and annually in the case of all other controls,
5 export controls maintained for national security purposes
6 pursuant to this Act for the purpose of insuring that such
7 controls are limited, to the maximum extent possible consist-
8 ent with the purposes of this Act, to such militarily critical
9 goods and technologies and the mechanisms through which
10 they may be effectively transferred.
11 (C) Export controls maintained for foreign policy pur-
12 poses shall expire on December 31, 1979, or one year after
13 imposition, whichever is later, unless extended by the Presi-
14 dent in accordance with this subparagraph and subparagraph
15 (D). Any such extension and any 'subsequent extension shall
16 not be for a period of more than one year. When imposing,
17 increasing, or extending export controls for foreign policy
18 purposes pursuant to the authority provided by this Act, the
19 President shall consider-
20 (i) alternative means to further the foreign policy
21 purposes in question;
22 (ii) the likelihood that foreign competitors will
23 join the United States in effectively controlling such
24 exports;
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1 (iii) the probability that such controls will achieve
2 the intended foreign policy purpose;
3 (iv) the effect of such controls on United States
4 exports, employment, and production, and on the inter-
5 national reputation of the United States as a supplier
6 of goods and technology;
7 (v) the reaction of other countries to the imposi-
8 tion or enlargement of such export controls by the
9 United States; and
10 (vi) the foreign policy consequences of not impos-
11 ing controls.
12 (D) Whenever the President imposes, increases, or ex-
13 tends export controls for foreign policy purposes pursuant to
14 authority provided by this Act, he shall inform the Congress
15 of his action within thirty days and, to the extent consistent
16 with the national interest, make public a report specifying
17 his conclusions with respect to each of the matters considered
18 as provided in subparagraph (C) of this paragraph and indi-
19 cating how such export controls will further significantly the
20 foreign policy of the United States or fulfill its declared in-
21 ternational obligations.
22 (E) The President -shall not impose export controls for
23 foreign policy or national security purposes on the export
24 from the United States of goods or technology which he deter-
25 mines are available without restriction from sources outside
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1 the United States in significant quantities and comparable
2 in quality to those produced in the United States, unless the
3 President determines that adequate evidence has been pre-
4 sented to him demonstrating that the absence of such controls
5 would prove detrimental to the foreign policy or national se-
6 curity of the United States. Where, in accordance with this
7 paragraph, export controls are imposed for foreign policy or
8 national security purposes notwithstanding foreign availabil-
9 ity, the President shall take steps to initiate negotiations with
10 the governments of the appropriate foreign countries for the
11 purpose of eliminating such availability.
12 (h)(1) Except as otherwise provided in this Act, the Sec-
13 retary of Commerce shall reorganize the Department of Com-
14 merce as necessary to effectuate the policies set forth in this
15 Act. The Secretary of Commerce shall prepare and maintain
16 a list of goods and technology the export of which from the
17 United States, its territories and possessions, is prohibited or
18 regulated pursuant to this Act. The Secretary shall review
19 such list not less frequently than every three years in the case
20 of controls maintained cooperatively with other nations, and
21 annually in the case of all other controls, in order to make
22 promptly such changes and revisions as may be necessary or
23 desirable in furtherance of the policies set forth in this Act.
24 The Secretary shall include in each review an assessment of
25 the availability from sources outside the United States, its
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1 territories and possessions, of goods and technology in sig-
2 nificant quantities and comparable in quality to those items
3 included on such list. In order to further effectuate the poli-
4 cies set forth in this Act, the Secretary shall establish within
5 the Office of Export Administration a capability for monitor-
6 ing and gathering information on the foreign availability of
7 goods and technology subject to export control.
8 (2) The Secretary of Commerce shall keep the public
9 fully apprised of changes in export control policy and pr6ce-
10 lures instituted in conformity with this Act with a view to
11 encouraging trade. The Secretary shall meet regularly with
12 representatives of the business -sector in order to obtain their
13 views on export control policy and the foreign availability of
14 goods and technology.
15 (c) (1) (A) To effectuate the policies set forth in this Act,
16 the Secretary of Commerce shall establish at least the follow-
17 ing three types of licenses in addition to such other types as
18 the Secretary may deem appropriate:
19 (i) A validated license.
20 (ii) A qualified general license.
21 (iii) A general license.
22 (B) As used in this subsection-
23 (i) a "validated license" is a license authorizing
24 the export of goods or technology pursuant to an appli-
25 cation by an exporter in accordance with rules and
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1 regulations issued pursuant to this Act. A validated li-
2 cense may be required for the export of goods and tech-
3 nology subject to multilateral controls in which the
4 United States participates or as determined pursuant
5 to paragraph (2) of this subsection;
6 (ii) a "qualified general license " is a license au-
7 thorizing the export to any destination of goods or tech-
8 nology, or a class of goods or technology, subject to the-
9 conditions contained in rules and regulations issued
10 pursuant to this Act, including conditions pertaining to
11 approval of the particular consignee and end-use of the
12 goods or technology. The goods and technology subject
13 to control by qualified general license shall be deter-
14 mined pursuant to paragraph (2) of this subsection;
15 and
16 (iii) a "general license" is a license authorizing
17 the export of a class of goods or technology without spe-
18 ci f is approval if the export is effected in accordance
19 with the conditions contained in rules and regulations
20 issued pursuant to this Act.
21 (2) To effectuate the policies set forth in section 3 of this
22 Act, it is the intent of Congress that the use of validated
23 licenses be limited to the greatest extent possible to the control
24 of the export of goods and technology which are subject to
25 multilateral controls in which the United States participates.
S. 737--5
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1 To the extent that the President determines that the policies
2 set forth in section 3 of this Act require the control of the
3 export of other goods and technology, or more stringent con-
4 trols than the multilateral controls, he will report to the Con-
5 gress not later than six months after the date of enactment of
6 this Act, and thereafter in each annual report, the reasons for
7 the need to impose, or to continue to impose, such controls. It
8 is further the intent of Congress that export controls which
9 exceed the multilateral controls shall be effected to the great-
10 est extent possible consistent with the purposes of this Act by
11 means of qualified general licenses.
12 (3) Not later than sixty days after the date of enactment
13 of this Act, the Secretary of Commerce shall establish proce-
14 dares for the approval of goods and technology that may be
15 exported pursuant to a qualified general license.
16 (d) (1) (A) All export license applications required under
17 this Act shall be submitted by the applicant to the Secretary.
18 All determinations with respect to any such application shall
19 be made by the Secretary, subject to the procedures provided
20 in this subsection.
21 (B) It is the intent of Congress that a determination
22 with respect to any export license application be made to the
23 maximum extent possible by,- the Secretary without referral of
24 such application to any other Government agency.
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1 (C) To the extent necessary, the Secretary shall seek
2 information and recommendations from the several executive
3 departments and independent agencies concerned with aspects
4 of our domestic and foreign policies and operations having an
5 important bearing on exports. These departments and agen-
6 cies shall cooperate fully in rendering such information and
7 recommendations.
8 (2) Within ten days after the date on which any export
9 license application is received, the Secretary shall-
10 (A) send the applicant an acknowledgement of the
11 receipt of the application and the date of the receipt;
12 (B) submit to the applicant a written description
13 of the procedures required by this subsection, the re-
14 sponsibilities of the Secretary and of other agencies
15 with respect to the application, and the rights of the
16 applicant;
17 (C) return the application without action if the
18 application is improperly completed or if additional in-
19 formation is required, with sufficient information to
20 permit the application to be properly resubmitted, in
21 which case if such application is resubmitted, it shall
22 be treated as a new application f --r the purpose of cal-
23 culating the time periods prescribed in this subsection;
24 (D) determine whether it is necessary to submit
25 the application to any other agency and, if such sub-
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1 mission is determined to be necessary, inform the ap-
2 plicant of the agency or agencies to which the applica ;
3 tion will be referred; and
4 (E) determine whether it is necessary to submit
5 the application to a multilateral review process, pursu-
6 ant to a multilateral agreement, formal or informal, to
7 which the United States is a party and, if so, inform
8 the applicant of this requirement.
9 (3) In each case in which the Secretary determines that
10 it is not necessary to submit an application to any other
11 agency for its information and recommendations, a license
12 shall be formally issued or denied within ninety days of the.
13 receipt of a properly completed application, unless additional
14 time is required and the applicant specifically requests an
15 extension.
16 (4) In each case in which the Secretary determines that
17 it is necessary to submit an application to any other agency
18 for its information and recommendations, the Secretary
19 shall, within thirty days of the receipt of a properly complet-
20 ed application-
21 (A) submit the application together with all neces-
22 sary analysis and recommendations of the Department
23 of Commerce concurrently to other appropriate agen-
24 cies; and
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1 (B) if the applicant so requests, provide the appli-
2 cant with an opportunity to review for accuracy any
3 documentation to be submitted to such other agencies
4 with respect to such application for the purpose of de-
5 scribing. the export in question in order to determine
6 whether such documentation accurately describes the
7 proposed export.
8 (5) (A) Any agency to which an application is submitted
9 pursuant to paragraph (4) shall submit to the Secretary,
10 within thirty days after its receipt of the application, the in-
11 formation or recommendations requested with respect to such
12 application. Except as provided in subparagraph (B), any
13 such agency which does not submit its recommendations
14 within the time period prescribed in the preceding sentence
15 shall be deemed by the Secretary to have no objection to the
16 approval of such application.
17 (B) If the head or acting head of any such agency noti-
18 fies the Secretary before the expiration of the time period
19 provided in subparagraph (A) for submission of its recom-
20 mendations that more time is required for review by such
21 agency, such agency shall have an additional thirty-day
22 period to submit its recommendations to the Secretary. If
23 such agency does not so submit its recommendations within
24 the time period prescribed by the preceding sentence, it shall
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1 be deemed by the Secretary to have no objection to the ap-
2 proval of such application.
3 (6) (A) Within ninety days after receipt of other agency
4 recommendations, as provided for in paragraph (5), the Sec-
5 retary shall formally issue or deny a license, unless addition-
6 al time is required and the applicant specifically requests an
7 extension. In deciding whether to issue or deny a license, the
8 Secretary shall take into account any recommendation of an
9 agency advising on the application in question. In cases
10 where the Secretary receives conflicting recommendations,
11 the Secretary shall, within the ninety days provided for in
12 this subsection, take such action as may be necessary to re-
13 solve such conflicting recommendations.
14 (B) In cases where the Secretary receives questions or
15 negative considerations or recommendations from other agen-
16 cies advising on an application, the Secretary shall, to the
17 maximum extent consistent with the national security or for-
18 eign- policy of the United States, inform the applicant of the
19 specific questions raised and any negative considerations or
20 recommendations made by an agency, and shall accord the
21 applicant an opportunity, before the final determination with
22 respect to the application is made, to respond in writing to
23 such questions, considerations, or recommendations.
24 (C) In cases where the Secretary has determined that
25 an application should be denied, at the time of the formal
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1 denial, the applicant shall be informed, to the maximum
2 extent consistent with the national security or foreign policy
3 of the United States, of the specific reasons for such denial.
4 (7) (A) Notwithstanding any other provision of this sub-
5 section, the Secretary of Defense is authorized to review any
6 proposed export of any goods or technology to any country to
7 which exports are controlled for national security purposes
8 and, whenever he determines that the export of such goods or
9 technology will make a significant contribution, which would
10 prove detrimental to the national security of the United
11 States, to the military potential of any such country, to rec-
12 ommend to the President that such export be disapproved.
13 (B) Notwithstanding any other provision of law, the
14 Secretary of Defense shall determine, in consultation with
15 the Secretary, and confirm in writing the types and catego-
16 Ties of transactions which should be reviewed by him in order
17 to make a determination referred to in subparagraph (A).
18 Whenever a license or other authority is requested for the
19 export to any country to which exports are controlled for na-
20 tional security purposes of goods or technology within any
21 such type or category, the Secretary shall notify the Secre-
22 tary of Defense of such request, and the Secretary may not
23 issue any license or other authority pursuant to such request
24 before the expiration of the period within which the President
25 may disapprove such export. The Secretary of Defense shall
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1 carefully consider all notifications submitted to him pursuant
2 to this subparagraph and, not later than thirty days after
3 notification of the request, shall-
(i) recommend to the President that he disapprove
any request for the export of any goods or technology to
any such country if he determines that the export of
7 such goods or technology will make a significant con-
10
11
12
13
14
tribution, which would prove detrimental to the nation-
al security of the United States, to the military poten-
tial of such country or any other country;
(ii) notify the Secretary that he would recommend
approval subject to specified conditions; or
(iii) recommend to the Secretary that the export of
goods or technology be approved.
15 If the -President notifies the Secretary, within thirty days
16 after receiving a recommendation from the Secretary of De-
17 fense, that he disapproves such export, no license or other
18 authority may be issued for the export of such goods or tech-
19 nology to such country.
20
(C) The Secretary shall approve or disapprove a license
21 application, and issue or deny a license, in accordance with
22 the provisions of this paragraph, and, to the extent applica-
23 ble, in accordance with the time periods and procedures other-,
24 wise set forth in this subsection.
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1 (8) In any case in which an application, which has
2 been finally approved under paragraph (4), (7), or (8) of this
3 subsection, is required to be submitted, to a multilateral
4 review process, pursuant to a multilateral agreement, formal
5 or informal, to which the United States is a party, the license
6 shall not be issued as prescribed in such paragraphs, but the
7 Secretary shall notify the applicant of the approval (and the
' 8 date of such approval) of the application by the Secretary.
9 subject to such multilateral review. The license shall be
10 issued upon approval of the application under such multilat-
11 eral review.
12 (9) The Secretary and any agency to which any appli-
13 cation is referred under this subsection shall keep accurate
14 records with respect to all applications considered by the Sec-
15 retary or by any such agency.
16 (e)(1) To effectuate the policy set forth in section
17 3(2)(C) of this Act, the Secretary of Commerce shall monitor
18 exports, and contracts for exports, of any goods (other than a
19 commodity which is subject to the reporting requirements of
20 section 812 of the Agricultural Act of 1970) when the volume
21 of such exports in relation to domestic supply contributes, or
22 may contribute, to an increase in domestic prices or a domes-
23 tic shortage, and such price increase or shortage has, or may
24 have, a serious adverse impact on the economy, any sector
25 thereof, or any industry or substantial segment thereof. Such
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1 monitoring shall commence at a time adequate to insure that
2 data will be available which is sufficient to permit achieve-
3 ment of the policies of this Act, and shall include the gather-
4 ing of data concerning the volume of exports indicated under
5 all contracts providing for the export of such goods following
6 the date of the filing of the petition under section 7(a)(1).
7 Information which the Secretary requires to be furnished in
8 effecting such monitoring shall be confidential, except as pro-
9 vided in paragraph (2) of this subsection and in the last two
10 sentences of section 10(c) of this Act.
11 (2) The results of such monitoring shall, to the extent
12 practicable, be aggregated and included in weekly reports set-
13 ting forth, with respect to each item monitored, actual and
14 anticipated exports, the destination by country, and the do-
15 mestic and worldwide price, supply, and demand. Such re-
16 ports may be made monthly if the Secretary determines that
17 there is insufficient information to justify weekly reports.
18 (f) In imposing export controls to effectuate the policy
19 stated in section 3(2)(C) of this Act, the President's authori-
20 ty shall include but not be limited to, the imposition of export
21 license fees.
22 (g)(1) Notwithstanding any other provision of this Act
23 and notwithstanding subsection (u) of section 28 of the Min-
24 eral Leasing Act of 1920, as amended (30 U. S. C. 185), no
25 domestically produced crude oil transported by pipeline over
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,1 right-of-way granted pursuant to the, requirements of section
2 203 of the Trans-Alaska Pipeline Authorization Act (43
3 U. S. C. 1653) (except any such crude . oil which (A) is ex-
4 ported, for the purpose of effectuating an exchange in which
5 the crude. oil is exported to an adjacent foreign state to be
6 refined and consumed therein, in exchange for the same
7 quantity of crude oil being exported from that state to the
8 United States; such exchange must: result- through conven-
9 ience or increased. efficiency of transportation in lower prices
10 for consumers of petroleum products in, the United States as
11 described in paragraph (2) (A) 0i). of, this subsection, or (B) is
12 temporarily exported for. convenience or increased efficiency
13 of transportation across parts,o f an, adjacent foreign state and
14 reenters the United States) may.-be,,exported from the United
15 States; its territories and possessions, unless the require-
16 meets of paragraph (2) of this subsection' are, met.
1.7, (2), Crude oil subject to the prohibition contained in
18 paragraph (1) may be exported only i f
19 (A) the. President makes and publishes an express
20 finding that exports of such crude oil, including ex-
21 changes-
22. (i) will not diminish the total quantity or
23 quality of petroleum refined within, stored within,
24 or legally committed to be transported to and sold
25 within the United States;
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1 in sections .3(2) . (A),, or.R (B) o f ,,this Act. The
Secretary of
., 2' Agriculture shall. not,, approve, the, exer, cise of such authority
3' with ,respect ,to any such commodity. unless he?has. (i) given
4, full consideration to the,_ alternative of . using . the Commodity
5 .,Credit Corporation%to, purchase suck commodity and arrange
6. ,sales to- foreign >governmentsrin accordance with. the, .provi-
7 sions of the Commodity Credit C, Corporation. Charter-Act so
8' : as to:stabilize markets, and maximize.returns., to ;agricultural
9 .producers, ;and '(ii) determined; thatexport -controls ''are prefer-
10 . able.;, to ;such . use of the authority granted by the Commodity
11. Credit Corporation Chapter Act.
12. (2)Upon approval o f the Secretary. o f Commerce, in
13
consultation with, the Secretary..o f Agriculture, .agricultural
14 commodities purchased by or for uses., in a foreign country
15 may remain in the United States for export at a later. date
16 free, from any quantitative limitations- on. export which may
17 be imposed pursuant to section 3(2)(C) of this Act subsequent
18 to such approval. The Secretary o f ,Commerce may not grant
19, approval 'hereunder.. unless ,he receives. adequate. assurance
20 . and,. in,,conjunction with the Secretary of Agriculture, finds
21 (A) that such. -commodities,.will` eventually, be exported, (B)
22, that.neither the sale nor, export thereof ,will .result in an ex-
23 cessive drain of scarce ma e'rials; and have a- serious domestic
~ I I I
24 inflationary impact,; .(C) than storage of such commodities in
25 . the United States will not unduly limit the-space available
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1 for storage of domestically owned commodities, and (D) that
2 the purpose of such storage is to establish a reserve of such
3 commodities for later use, not including resale to or use by
4 another country. The Secretary of Commerce is authorized to
5 issue such rules and regulations as may be necessary to im-
6 plement this paragraph.
7 (j) Nothing in this Act or the rules or regulations there-
8 under shall be construed to require authority or permission to
9 export, except where required by the President to effect the
10 policies set forth in section 3 of this Act.
11 (k) The President may delegate the power, authority,
12 and discretion conferred upon him by this Act to such depart-
13 ments, agencies, or officials of the Government as he may
14 deem appropriate, except that no authority under this Act
15 may be delegated to, or exercised by, any official of any de-
16 partment or agency the head of which is not appointed by and
17 with the advice and consent of the Senate.
18 (1X1) Any United States firm, enterprise, or other non-
19 governmental entity which, for commercial purposes, enters
20 into an agreement with an agency of a government in another
21 country to which exports are restricted for national security
22 purposes, which agreement cites an intergovernmental agree-
23 ment calling for the encouragement of technical cooperation
24 and is intended to result in the export from the United State
25 to the other party of unpublished technical data of United/
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1 States origin, shall report such agreement to the Secretary of
2 Commerce.
3 (2) The provisions of this subsection shall not apply to
4 colleges, universities, or other educational institutions.
5 (3) The Secretary of Commerce is authorized, to issue
6 such rules and regulations as are necessary to implement the
7 provisions of this subsection.
8 (m) The Secretary of State, in consultation with the
9 Secretary of Defense, the Secretary of Commerce, and the
10 heads of other appropriate departments and agencies, shall be
11 responsible for negotiations with other countries regarding
12 their cooperation in restricting the export of goods and tech-
13 nologies whose export should be restricted pursuant to section
14 3(9) of this Act, as authorized under section 4(a)(1) of this
15 Act, including negotiations on the basis of approved adminis-
16 tration positions as to which goods and technologies should be
17 subject to multilaterally agreed export restrictions and what
18 conditions should apply for exceptions from those restrictions.
19 (n) The President shall enter into negotiations with the
20 governments participating in the group known as the Coordi-
21 nating Committee (hereinafter in this subsection referred to
22 as the "Committee') with a view toward reaching-
23 (A) an agreement to publish the list of items con-,
24 trolled for export by agreement of the Committee, to-
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1 gether with all notes, understandings, and other aspects
2 of such list, and all changes thereto;
3 (B) an agreement to hold periodic meetings of
4 such governments with high-level representation from
5 such governments, for the purpose of providing guid-
6 ance on export control policy issues to the Committee;
7 (C) an agreement to modify the scope of the
8 export controls imposed by agreement of the Committee
9 to a level accepted and enforced by all governments
10 participating in the Committee; and
11 (D) an agreement on more effective procedures for
12 enforcing the export controls agreed to pursuant to sub-
13 paragraph (C).
14 (o) In order to. ensure that requirements for validated
15 licenses and qualified general licenses are periodically re-
16 moved as goods or technology subject to such requirements
17 become obsolete with respect to the national security of the
18 United States, regulations issued by the Secretary may,
19 where appropriate, provide for annual increases in the per-
20 formance levels of goods or technology subject to any such
21 licensing requirement. Any such goods or technology which
22 no longer meet the performance levels established by the latest
23 such increase shall be removed from the list established pur-
24 suant to subsection (b) (1) of this section unless, under such
25 exceptions and under such procedures as the Secretary shall
S. 737--6
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1 prescribe, any other Government agency objects to such re-
2 moval and the Secretary determines, on the basis of such
3 objection, that the goods or technology shall not be removed
4 from the list. Consideration shall also be given by the Secre-
5 tary, where appropriate, to removing site visitation require-
6 ments for goods and technology which are removed from the
7 above-mentioned list unless objections described in this sub-
8 section are raised.
9 (p)(1) Notwithstanding any other provision of this Act,
10 no horse may be exported by sea from the United States, its
11 territories and possessions, unless such horse is part of a con-
12 signment of horses with, respect to which a waiver has been
13 granted under paragraph (2) of this subsection.
14 (2) The Secretary of Commerce, in consultation with
15 the Secretary of Agriculture, may issue rules and regulations
16 providing for the granting of waivers permitting the export by
17 sea of a specified consignment of horses, if the Secretary of
18 Commerce, in consultation with the Secretary of Agriculture,
19 determines that no horse in that consignment is being export-
20 ed for purposes of slaughter.
21 FOREIGN BOYCOTTS
22 SEC. 5. (a)(1) For the purpose of implementing the
23 - policies set forth in section 3(5)(A) and (B), the President
24 shall issue rules and regulations prohibiting any United
25 States person, with respect to his activities in the interstate
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1 or foreign commerce of the United States, from taking or
2 knowingly agreeing to take any of the following actions with
3 intent to comply with, further, or support any boycott fostered
4 or imposed by a foreign country against a country which is
5 friendly to the United States and which is not itself the
6 object of any form of boycott pursuant to United States law
7 or regulation:
8 (A) Refusing, or requiring any other person to
9 refuse, to do business with or in the boycotted country,
10 with any business concern organized under the laws of
11 the boycotted country, with any national or resident of
12 the boycotted country, or with any other person, pursu-
13 ant to an agreement with, a requirement o f, or a re-
14 quest from or on behalf of the boycotting country. The
15 mere absence of a business relationship with or in the
16 boycotted country with any business concern organized
17 under the laws of the boycotted country, with any na-
18 tional or resident of the boycotted country, or with any
19 other person, does not indicate the existence of the
20 intent required to establish a violation of rules and reg-
21 ulations issued to carry out this subparagraph.
22 (B) Refusing, or requiring any other person to
23 refuse, to employ or otherwise discriminating against
24 any United States person on the basis of race, religion,
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1 sex, or national.origin of that person or of any owner,
2 officer, director, or employee of such person.
3 (C) Furnishing information with respect to the
4 race, religion, sex, or national origin of any United
5 States person or of any owner, officer, director, or em-
6 ployee of such person..
7 (D) Furnishing information about whether any
8 person has, has had, or proposes to have any business
9 relationship (including a relationship by way of sale,
10 purchase, legal or commercial representation, shipping
11 or other transport, insurance, investment, or supply)
12 with or in the boycotted country, with any business
13 concern organized under the laws of the boycotted
14 country, with any national or resident of the boycotted
15 country, or with any other person which is known or
16 believed to be restricted from having any business rela-
17 tionship with or in the boycotting country. Nothing in
18 this paragraph shall prohibit the furnishing of normal
19 business information in a commercial context as de-
20 fined by the Secretary of Commerce.
21 (E) Furnishing information about whether any
22 person is a member of, has made contributions to, or is
23 otherwise associated with or involved in the activities
24 of any charitable or fraternal organization which sup-
25 ports the boycotted country.
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1 (F) Paying, honoring, confirming, or otherwise
2 implementing a letter of credit which contains any con-
3 dition or requirement compliance with which is prohib-
4 ited by rules and regulations issued pursuant to this
5 paragraph, and no United States person shall, as a
6 result of the application of this paragraph, be obligated
7 to pay or otherwise honor or implement such letter of
8 credit.
9 (2) Rules and regulations issued pursuant to paragraph
10 (1) shall provide exceptions for-
11 (A) complying or agreeing to comply with require-
12 ments (i) prohibiting the import of goods or services
,13 from the boycotted country or goods produced or serv-
14 ices provided by any business concern organized under
15 the laws of the boycotted country or by nationals or
16 residents of the boycotted country, or (ii) prohibiting
17 the shipment of goods to the boycotting country on a
18 carrier of the boycotted country, or by a route other
19 than that prescribed by the boycotting country or the
20 recipient of the shipment;
21 (B) complying or agreeing to comply with import
22 and shipping document requirements with respect to
23 the country of origin, the name of the carrier and route
24 of shipment, the name of the supplier of the shipment
25 or the name of the provider of other services, except
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1 that no information knowingly furnished or conveyed
2 in response to such requirements may be stated in neg-
3 ative, blacklisting, or similar exclusionary terms on or
4 after June 22, 1978, other than with respect to carriers
5 or route of shipment as may be permitted by such rules
6 and regulations in order to comply with precautionary
7 requirements protecting against war risks and confisca-
8 tion;
9 (C) complying or agreeing to comply in the
10 normal course of business with the unilateral and spe-
ll cific selection by a boycotting country, or national or
12 resident thereof, of carriers, insurers, suppliers of serv-
13 ices to be performed within the boycotting country or
14 specific goods which, in the normal course of business,
15 are identifiable by source when imported into the boy-
16 cotting country;
17 (D) complying or agreeing to comply with export
18 requirements of the boycotting country relating to ship-
19 ments or transshipments of exports to the boycotted
20 country, to any business concern of or organized under
21 the laws of the boycotted country, or to any national or
22 resident of the boycotted country;
23 (E) compliance by an individual or agreement by
24 an individual to comply with the immigration or pass-
25 port requirements of any country with respect to such
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1 individual or any member of such individual's family
2 or with requests for information regarding require-
3 ments of employment of such individual within the
4 boycotting country; and
5 (F) compliance by a United States person resi-
6 dent in a foreign country or agreement by such person
7 to comply with the laws of that country with respect to
8 his activities exclusively therein, and such rules and
9 regulations may contain exceptions for such resident
10 complying with the laws or regulations of that foreign
11 country governing imports into such country of trade-
12 marked, trade named, or similarly specifically identifi-
13 able products, or components of products for his own
14 use, including the performance of contractual services
15 within that country, as may be defined by such rules
16 and regulations.
17 (3) Rules and regulations issued pursuant to para-
18 graphs (2) (C) and (2) (F) shall not provide exceptions from
19 paragraphs (1) (B) and (1) (C).
20 (4) Nothing in this subsection may be construed to su-
21 persede or limit the operation of the antitrust or civil rights
22 laws of the United States.
23 (5) Rules and regulations pursuant to this subsection
24 shall be issued not later than ninety days after the date of
25 enactment of this section and shall be issued in final form
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1 and become effective not later than one hundred and twenty
2 days after they are first issued, except that (A) rules and
3 regulations prohibiting negative certification may take effect
4 not later than one year after the date of enactment of this
5 section, and (B) a grace period shall be provided for the ap-
6 plication of the rules and regulations issued pursuant to this
7 subsection to actions taken pursuant to a written contract or
8 other agreement entered into on or before May 16, 1977.
9 Such grace period shall end on December 31, 1978, except
10 that the Secretary of Commerce may extend the grace period
11 for not to exceed one additional year in any case in which the
12 Secretary finds that good faith efforts are being made to re-
13 negotiate the contract or agreement in order to eliminate the
14 provisions which are inconsistent with the rules and regula-
15 tions issued pursuant to paragraph (1).
16 (6) This Act shall apply to any transaction or activity
17 undertaken, by or through a United States or other person,
18 with intent to evade the provisions of this Act as implemented
19 by the rules and regulations issued pursuant to this subsec-
20 tion, and such rules and regulations shall expressly provide
21 that the exceptions set forth in paragraph (2) shall not permit
22 activities or agreements (expressed or implied by a course o f .
23 conduct, including a pattern of responses) otherwise prohibit-
24 ed, which are not within the intent of such exceptions.
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1 (b)(1) In addition to the rules and regulations issued
2 pursuant to subsection (a) of this section, rules and regula-
3 Lions issued under section 4(a) of this Act shall implement
4 the policies set forth in section 3(5).
5 (2) Such rules and regulations shall require that any
6 United States person receiving a request for the furnishing of
7 information, the entering into or implementing of agreements,
8 or the taking of any other action referred to in section 3(5)
9 shall report that fact to the Secretary of Commerce, together
10 with such other information concerning such request as the
11 Secretary may require for such action as he may deem ap-
12 propriate for carrying out the policies of that section. Such
13 person shall also report to the Secretary of Commerce wheth-
14 er he intends to comply and whether he has complied with
15 such request. Any report filed pursuant to this paragraph
16 after the date of enactment of this section shall be made avail-
17 able promptly for public inspection and copying, except that
18 information regarding the quantity, description, and. value of
19 any goods or technology to which such report relates may be
20 kept confidential if the Secretary determines that disclosure
21 thereof would place the United States person involved at a
22 competitive disadvantage. The Secretary of Commerce shall
23 periodically transmit summaries of the information contained
24 in such reports to the Secretary of State for such action as
25 the Secretary of State, in consultation with the Secretary of
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1 Commerce, may deem appropriate for carrying out the poli-
2 cies set forth in section 3(5) of this Act.
3 (c) The provisions of this section and the rules and reg-
4 ulations issued pursuant thereto shall preempt any law, rule,
5 or regulation of any of the several States or the District of
6 Columbia, and any of the territories or possessions of the
7 United States, or of any governmental subdivision thereof,
8 which law, rule, or regulation pertains to participation in,
9 compliance with, implementation of, or the furnishing of in-
10 formation regarding restrictive trade practices or boycotts fos-
11 tered or imposed by foreign countries against other countries.
12 PROCEDURES FOR HARDSHIP RELIEF FROM EXPORT
13 CONTROLS
14 SEC. 6. (a) Any person who, in his domestic manufac-
15 turing process or other domestic business operation, utilizes a
16 product produced abroad in whole or in part from a commod-
17 ity historically obtained from the United States but which
18 has, been made subject to export controls, or any person who
19 historically has exported such a commodity, may transmit a
20 petition of hardship to the Secretary of Commerce requesting
21 an exemption from such controls in order to alleviate any
22 unique hardship resulting from the imposition of such con-
23 trols. A petition under this section shall be in such form as
24 the Secretary of Commerce shall prescribe and shall contain
25 information demonstrating the need for the relief requested.
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1 (b) Not- later.` than thirty days after receipt of any peti-
2 Lion under subsection (a), the Secretary of Commerce shall
3 transmit a written .decision to the petitioner granting or deny-
4 ing the requested relief. Such ' decision shall contain a state-
5 went setting forth. the .Secretary's ?basis for, the grant or
6 denial. Any exemption. granted may be subject to such condi-
7 tions as the Secretary- deems appropriate!'-
8 (c) For purposes of . this section, the Secretary's decision
9 with respect' to the grant or denial of relief from unique hard-
10 ship resulting directly or. indirectly from;'the imposition of
11 controls shall. reflect,, 'the). Secretary's consideration of such
12 factors as-
13, (1)''whetherjdenial would cause a .,unique hardship
14 to the petitioner which can be -alleviated only by grant-
15. ing an exception to' the applicable regulations. In deter-
16 .. mining whether 'relief shall, be granted, the Secretary
17 ' will take into account:
18 (A)~ ownership.,of material for which there,. is
19 no practicable.. domestic. market by virtue- of the.-lo-
20 cation or-nature b f the material; ? ,
24 (B) potential serious, financial loss to the ap-
22 plicant if not granted an exception; ,
23 (C) . inability, to obtain, except through
24 import, an item essential for' domestic use which
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1 is produced abroad from the commodity under
2 control;
3 (D) the extent to which denial would con-
4 f lict, , to the particular detriment of the applicant,
5 with other national policies including those re-
6 flected in any international agreement to which
7 the United States is a party;
8 (E) possible adverse effects on the economy
9 (including unemployment) in any locality or
10 region of the United States; and
11 (F) other relevant factors, including the ap-
12 plicant's lack of an exporting history during any
13 base period that may be established with respect
14 to export quotas for the particular commodity; and
15 (2) the effect a finding in favor of the applicant
16 would have on attainment of the basic objectives of the
17 short supply control program.
18 In all cases, the desire to sell at higher prices and thereby
19 obtain greater profits will not be considered as evidence of a
20 unique hardship, nor will circumstances where the hardship
21 is due to imprudent acts or failure to act on the part of the
22 petitioner.
23 PETITIONS FOR MONITORING OR CONTROLS
24 SEC. 7. (a)(1) Any entity, including a trade associ-
25 ation, firm, or certified or recognized union or group of work-
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1 ers, which is representative of an industry or a substantial
2 segment of an industry which processes any material or com-
3 modity may transmit a written petition to the Secretary of
4 Commerce requesting the imposition of export controls, or the
5 monitoring of exports, or both, with respect to such material
6 or commodity.
7 (2) Each petition shall be in such form as the Secretary
8 of Commerce shall prescribe and shall contain information in
9 support of the action requested.
10 (b) Within fifteen days of receipt of any petition de-
l 1 scribed in subsection (a), the Secretary of Commerce shall
12 cause to be published a notice in the Federal Register. The
13 notice shall include (1) the name of the material or commod-
14 ity which is the subject of the petition, (2) the Schedule B
15 number of the material or commodity as set forth in the Sta-
16 tistical Classification of Domestic and Foreign Commodities
17 Exported from the United States, (3) whether the petitioner
18 is requesting that control or monitoring, or both, be imposed
19 with respect to the exportation of such material or commod-
20 ity, and (4) provide that interested persons shall have a
21 period of thirty days commencing with the date of publication
22 of such notice to submit to the Secretary of Commerce writ-
23 ten data, views, or arguments, with or without opportunity
24 for oral presentation. At the request of any person, the Secre-
25 tary shall conduct public hearings with respect to the subject
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1' of the petition, in which event,the thirty.-day period shall be
2? extended to forty-five days. ; '.
3 (c) Within thirty days after the -end of the thirty-day or
(b), the Secre-
5 Mary of Commerce shall
6 (1) determine whether to impose monitoring or
.;7 controls or both on ? the exportation of such material or
commodity; or
9 (2) publish -in the Federal Register a- detailed
10 statement of the reasons - f or such determination.
11 (d) Within :fifteen days. - f ollowing a decision *under sub-
12 section (c)' to impose monitoring or controls on 'the exporta-
13 tion of a material or 'com)nodity, the Secretary shall publish
14 in the Federal.. Register proposed regulations. with respect to
15 " such monitoring or controls. Within 'thirty days following the
16 publication of such notice, ,'and after considering any public
17 comments, the Secretary shall: publish and implement final
18 regulations:
19 (e) The procedures and time'-limits set forth in this sec-
20' tion `shall takeprecedence' over any review. undertaken at the
21' initiative of the Secretary.
22. (f) The w,Secretary' shall have""'the 'auth`o'rity to 'impose
23 'monitoring: ~.'or' controls' on : a' temporary basis `4 d'iiring the
24 period following-4he 'filing, of `a petition -under s'ubse`ction
25 ',.'(a) (1) and: his. determination under si b`section: (c) i f he deems
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1 such action to be necessary to effectuate the policy set forth in
2 section 3(2)(C) of this Act.
3 (g) The authority under this section shall not be con-
4 ' strued to affect the authority of the Secretary of Commerce
5 under any other provision of this Act.
6 CONSULTATION AND STANDARDS
7 SEC. 8. (a) In determining what shall be controlled or
8 monitored under this Act, and in determining the extent to
9 which exports shall be limited, any department, agency, or
10 official making these determinations shall seek information
11 and advice from the several executive departments and inde-
12 pendent agencies concerned with aspects of our domestic and
13 foreign policies and operations having an important bearing
14 on exports. Such departments and agencies shall fully coop-
15 erate in rendering such advice and information. Consistent
16 with considerations of national security, the President shall
17 seek information and advice from various segments of private
18 industry in connection with the making of these determina-
19 tions. In addition, the Secretary of Commerce shall consult
F
20 with the Secretary of Energy to determine whether, in order
21 to effectuate the policy stated in section 3(2)(C) of this Act,
22 monitoring or controls are necessary with respect to exports
23 of facilities, machinery, or equipment normally and princi-
24 pally used, or intended to be used, in the production, conver-
25 sion, or transportation of fuels and energy (except nuclear
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1 energy), including but not limited to, drilling rigs, platforms,
2 and equipment; petroleum refineries, natural gas processing,
3 liquefaction, and gasification plants; facilities for production
4 of synthetic natural gas or synthetic crude oil; oil and gas
5 pipelines, pumping stations, and associated equipment; and
6 vessels, for transporting oil, gas, coal, and other fuels.
7 (b) (1) In authorizing exports, full utilization of private
8 competitive trade channels shall be encouraged insofar as
9 practicable, giving consideration to the interests of small
10 business, merchant exporters as well as producers, and estab-
11 lisped and new exporters, and provision shall be made for
12 representative trade consultation to that end. In addition,
13 there may be applied such other standards or criteria as may
14 be deemed necessary by the head of such department, or
15 agency, or official to carry out the policies of this Act.
16 (2) Upon imposing quantitative restrictions on exports
17 of any goods to carry out the policy stated in section 3(2)(C)
18 of this Act, the Secretary of Commerce shall include in the
19 notice published in the Federal Register an invitation to all
20 interested parties to submit written comments within fifteen
21 days from the date of publication of the impact of such re-
22 strictions and the method of, licensing used to implement
23 them.
24 (c)(1) Upon written request by representatives of a sub-
25 stantial segment of any industry which produces goods or
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1 technology which are subject to export controls or are being
2 considered for such controls because of their significance to
3 the national security of the United States, or whenever he
4 deems appropriate to further the purposes of this Act, the
5 Secretary of Commerce shall appoint a technical advisory
6 committee for any grouping of such goods or technology
7 which he determines is difficult to evaluate because of ques-
8 tions concerning technical matters, worldwide availability
9 and actual utilization of production and technology, or licens-
10 ing procedures. Each such committee shall consist of repre-
11 sentatives of United States industry and government, includ-
12 ing the Departments of Commerce, Defense, and State, and,-
13 when appropriate, other Government departments and agen-
14 cies. No person serving on any such committee who is repre-
15 sentative of industry shall serve on such committee for more
16 than four consecutive years.
17 (2) It shall be the duty and function of the technical
18 advisory committees established under paragraph (1) to
19 advise and assist the Secretary of Commerce and any other
20 department, agency, or official of the Government of the
21 United States to which the President has delegated power,
22 authority, and discretion under section 4(e) with respect to
23 actions designed to carry out the policy set forth in section 3
24 of this Act. Such committees, where they have expertise in
25 such matters, shall be consulted with respect to questions in-
S. 737--7
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1 volving (A) technical matters, (B) worldwide availability and
2 actual utilization of production technology, (C) licensing pro-
3 cedures which affect the level of export controls applicable to
4 any goods or technology, and (D) exports subject to multilat-
5 eral controls in which the United States participates includ-
6 ing proposed revisions of any such multilateral controls.
7 Nothing in this subsection shall prevent the Secretary from
8 consulting, at any time, with any person representing indus-
9 try or the general public regardless of whether such person is
10 a member of a technical advisory committee. Members of the
11 public shall be given a reasonable opportunity, pursuant to
12 regulations prescribed by the Secretary of Commerce, to pre-
13 sent evidence to such committees.
14 (3) Upon request of any member of any such committee,
15 the Secretary may, if he determines it appropriate, reimburse
16 such member for travel, subsistence, and other necessary ex-
17 penses incurred by him in connection with his duties as a
18 member.
19 (4) Each such committee shall elect a chairman, and
20 shall meet at least every three months at the call of the Chair-
21 man, unless the Chairman determines, in consultation with
22 the other members of the committee, that such a meeting is
23 not necessary to achieve the purposes of this Act. Each such
24 committee shall be terminated after a period of two years,
25 unless extended by the Secretary for additional periods of
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1 two years. The Secretary shall consult each such committee
2 with regard to such termination or extension of that
3 committee.
4 (5) To facilitate the work of the technical advisory com-
5 mittees, the Secretary of Commerce, in conjunction with
6 other departments and agencies participating in the adminis-
7 tration of this Act, shall disclose to each such committee ade-
8 quate information, consistent with national security and for-
9 eign policy, pertaining to the reasons for the export controls
10 which are in effect or contemplated for the grouping of goods
11 or technology with respect to which that committee furnishes
12 advice.
13 (6) Whenever a technical advisory committee certifies to
14 the Secretary of Commerce that goods or technology are
15 available in fact from sources outside the United States in
16 sufficient quantity and of comparable quality so as to render
17 United States export controls ineffective in achieving the
18 purposes of this Act, and provides adequate documentation
19 for such certification, the Secretary of Commerce shall inves-
20 tigate and report to the technical advisory committee on
21 whether the Secretary concurs with the certification. If the
22 Secretary concurs, the Secretary shall submit a recommen-
23 dation to the President who shall act in accordance with sec-
24 tion 4 (a) (2) (E) of this Act.
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1 VIOLATIONS
2 SEC. 9. (a) Except as provided in subsection (b) of this
3 section, whoever knowingly violates any provision of this Act
4 or any regulation, order, or license issued thereunder shall be
5 fined not more than five times the value of the exports in-
6 volved or $50, 000, whichever is greater, or imprisoned not
7 more than five years, or both.
8 (b) Whoever willfully exports anything contrary to any
9 provision of this Act or any regulation, order, or license
10 issued thereunder, with knowledge that such exports will be
11 used for the benefit of any country to which exports are re-
12 stricted for national security or foreign policy purposes, shall
13 be fined not more than five times the value of the exports
14 involved or $100, 000, whichever is greater, or imprisoned not
15 more than ten years, or both.
16 (c) (1) The head of any department or agency exercising
17 any functions under this Act, or any officer or employee of
18 such department or agency specifically designated by the
19 head thereof, may impose a civil penalty not to exceed
20 $10,000 for each violation of this Act or any regulation,
21 order, or license issued under this Act, either in addition to
22 or in lieu of any other liability or penalty which may be
23 imposed.
24 (2)(A) The authority under this Act to suspend or
25 revoke the authority of any United States person to export
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1 goods or technology may be used with respect to any violation
2 of the rules and regulations issued pursuant to section 5(a) of
3 this Act.
4 (B) Any administrative sanction (including any civil
5 penalty or any suspension or revocation of authority to
6 export) imposed under this Act for a violation of the rules
7 and regulations issued pursuant to section 5(a) of this Act
8 may be imposed only after notice and opportunity for an
9 agency hearing on the record in accordance with sections 554
10 through 557 of title 5, United States Code.
11 (C) Any charging letter or other document initiating ad-
12 ministrative proceedings for the imposition of sanctions for
13 violations of the rules and regulations issued pursuant to sec-
14 tion 5(a) of this Act shall be made available for public in-
15 spection and copying.
16 (d) The payment of any penalty imposed pursuant to
17 subsection (c) may be made a condition, for a period not
18 exceeding one year after the imposition of such penalty, to the
19 granting, restoration, or continuing validity of any export
20 license, permission, or privilege granted or to be granted to
21 the person upon whom such penalty is imposed. In addition,
22 the payment of any penalty imposed under subsection (c)
23 may be deferred or suspended in whole or in part for a period
24 of time no longer than any probation period (which may
25 exceed one year) that may be imposed upon such person.
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1 Such a deferral or suspension shall not operate as a bar to
2 the collection of the penalty in the event that the conditions of
3 the suspension, deferral, or probation are not fulfilled.
4 (e) Any amount paid in satisfaction of any penalty im-
5 posed pursuant to subsection (c) shall be covered into the
6 Treasury as a miscellaneous receipt. The head of the depart-
7 ment or agency concerned may, in his discretion, refund any
8 such penalty, within two years after payment, on the ground
9 of a material error of fact or law in the imposition. Notwith-
10 standing section 1346(a) of title 28, United States Code, no
11 action for the refund of any such penalty may be maintained
12 in any court.
13 (f) In the event of the failure of any person to pay a
14 penalty imposed pursuant to subsection (c), a civil action for
15 the recovery thereof may, in the discretion of the head of the
16 department or agency concerned, be brought in the name of
17. the United States. In any such action, the court shall deter-
18 mine de novo all issues necessary to the establishment of lia-
19 bility. Except as provided in this subsection and in subsec-
20 tion (d), no such liability shall be asserted, claimed, or recov-
21 ered upon by the United States in any way unless it has
22 previously been reduced to judgment.
23 (g) Nothing in subsection (c), (d), or (f) limits-
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1 (1) the availability of other administrative or ju-
2 dicial remedies with respect to violations of this Act, or
3 any regulation, order, or license issued under this Act;
4 (2) the authority to compromise and settle admin-
5 istrative proceedings brought with respect to violations
6 of this Act, or any regulation, order, or license issued
7 under this Act; or
8 (3) the authority to compromise, remit or mitigate
9 seizures and forfeitures pursuant to section 1(b) of title
10 VI of the Act of June 15, 1917 (22 U.S.C. 401(b)).
11 ENFORCEMENT
12 SEC. 10. (a) To the extent necessary or appropriate to
13 the enforcement of this Act or to the imposition of any penal-
14 ty, forfeiture, or liability arising under the Export Control
15 Act of 1949, the head of any department or agency exercising
16 any function thereunder (and officers or. employees of such
17 department or agency specifically designated by the head
18 thereof) may make such investigations and obtain such in f or-
19 mation from, require such reports or the keeping of such rec-
20 orris by, make such inspection of the books, records, and other
21 writings, premises, or property of, and take the sworn testi-
22 mony of, any person. In addition, such officers or employees
23 may administer oaths or affirmations, and may by subpena
24 require any person to appear and testify or to appear and
25 produce books, records, and other writings, or both, and in
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1 the case of contumacy by, or refusal to obey a subpena issued
2- to, any'such person, the district court of the United States for
3 any district in which such person is found or resides or
4 transacts business, upon application, and after notice to any
5 such person and hearing, shall have jurisdiction to issue an
6 order requiring such person to appear and give testimony or
7 to appear and produce books, records, and other writings, or
8 both, and any failure to-obey such order of the court may be
9 punished by such court as a contempt thereof.
10 (b) No person shall be excused from complying with any
11 requirements under this section because of his privilege
12 against self-incrimination, but the immunity provisions of
13 the Compulsory Testimony Act of February 11, 1893 (27
14 Stat. 443; 49 U.S.C. 46) shall apply with respect to any
15 individual who specifically claims such privilege.
16 (c) Except as otherwise provided by the third sentence of
17 section 5(b)(2) and by section 9(c)(2)(C) of this Act, in for-
18 mation obtained under this Act, which is deemed confidential
19. or with reference to which a request for confidential treatment
20 is made by the person furnishing such information, shall be
21 exempt from disclosure under section 552 (b) (3) (B) of title 5,
22 United States Code, and such information shall not be pub-
23 lished or disclosed unless the Secretary of Commerce deter-
24 mines that the withholding thereof is contrary to the national
25 interest. Nothing in this Act shall be construed as authoriz-
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1 ing the withholding of information from Congress, and all
2 information obtained at any time under this Act.or previous
3 Acts regarding the control of exports, including any report or
4 license application required under section 4(b), shall be made
5 available upon request to any committee or subcommittee of
6 Congress of appropriate jurisdiction.' No such committee or
7 subcommittee shall disclose any information obtained under
8 this Act or previous Acts regarding the control of exports
9 which is submitted on a confidential basis unless the full
10 committee determines that the withholding thereof is contrary
11 to the national interest.
12 (d) In the administration of this Act, reporting require-
13 ments shall be so designed as to reduce the cost of reporting,
14 recordkeeping, and export documentation required under this
15 Act to the extent feasible consistent with effective enforcement
16 and compilation of useful-trade statistics. Reporting, record-
17 keeping, and export documentation requirements shall be pe-
18 riodically reviewed and revised in the light of developments
19 in the field of information technology.
20 EXEMPTION FROM CERTAIN PROVISIONS RELATING TO
21 ADMINISTRATIVE PROCEDURE AND JUDICIAL REVIEW
22 SEC. 11. (a) Except as provided in section 9(c)(2), the
23 functions exercised under this Act are excluded from the op-
24 eration of sections 551, 553 through 559, and 701 through
25 706 of title 5, United States Code.
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1 (b) It is the intent of Congress that, to the extent practi-
2 cable, all regulations imposing controls on exports under this
3 Act be issued in proposed form' with meaningful opportunity
4 for public comment before taking effect. In cases where a
5 regulation imposing controls under this Act is issued with
6 immediate effect, it is the intent of Congress that meaningful
7 opportunity for public comment also be provided and that the
8 regulation be reissued in final form after public comments
9 have been fully considered. The Secretary shall include in
10 the annual report required by this Act a detailed accounting
11 of the issuance of regulations under the authority of this Act,
12 including an explanation of each case in which regulations
13 were not issued in accordance with the first sentence of this
14 subsection.
15 ANNUAL REPORT
16 SEC. 12. (a) The Secretary of Commerce shall make an
17 annual report to the President and to the Congress on the
18 implementation of this Act.
19 (h) Each annual report shall include an accounting
20
21 (1) actions taken by the President and the Secre-
22 tary of Commerce to effect the antiboycott policies set
23 forth in section 3(5) of this Act;
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1 (2) organizational and procedural changes insti-
2 tuted and any reviews undertaken in furtherance of the
3 policies set forth in this Act;
4 (3) efforts to keep the business sector of the
5 Nation informed about policies and procedures adopted
6 under this Act;
7 (4) any changes in the exercise of the authorities
8 of section 4(a) of this Act;
9 (5) the results of review of United States policy
10 toward individual countries called for in section
11 4(a) (2) (A);
12 (6) the results, in as much detail as may be in-
13 cluded consistent with the national security and the
14 need to maintain the confidentiality of proprietary in-
15 formation, of the actions, including reviews and revi-
16 sions of export controls maintained for national secu-
17 city purposes, required by section 4 (a) (2) (B);
-18 (7) actions taken pursuant to section 4(b)(1), in-
19 cluding changes made in control lists and assessments
20 of foreign availability;
21 (8) evidence demonstrating a need to impose
22 export controls for national security or foreign policy
23 purposes in the face of foreign availability as set forth
24 in section 4 (a) (2) (E);
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1 (9) the information contained in the reports re-
2 quired by section 4(e)(2) of this Act, together with an
3 analysis of-
4 (A) the impact on the economy and world
5 trade of shortages or increased prices for commod-
6 ities subject to monitoring under this Act or sec-
7 tion 812 of the Agricultural Act of 1970;
8 (B) the worldwide supply of such commod-
9 ities; and
10 (C) actions being taken by other nations in
11 response to such shortages or increased prices;,
12 (10) delegations of authority by the President as
13 provided for under section 4(k) of this Act;
14 (11) the progress of negotiations under section
15 4(n) of this Act;
16 (12) the number and disposition of export license
17 applications taking more than 90 days to process pur-
18 scant to section 4(d) of this Act;
19 (13) consultations undertaken with technical advi-
20 sory committees pursuant to section 8(c) of this Act,
21 the use made of advice given, and the contribution such
22 committees made in carrying out the policies of this
23 Act;.
24 (14) violations of the provisions of this Act and
25 penalties imposed pursuant to this Act; and
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1 (15) any revisions to reporting requirements pre-
2 scribed in section 10(d).
3 (c) The heads of other involved departments and agen-
4 cies shall fully cooperate with the Secretary of Commerce in
5 providing all information required by the Secretary of Com-
6. merce to complete the annual reports.
7 DEFINITIONS
8 SEC. 13. As used in this Act-
9 (1) the term "person " includes the singular and
10 the plural and any individual, partnership, corpora-
11 tion, or other form of association, including any gov-
12 ernment or agency thereof;
13 (2) the term "United States person " means any
14 United States resident or national (other than an indi-
15 vidual resident outside the United States and employed
16 by other than a United States person), any domestic
'17 concern (including any permanent domestic establish-
18 meet of any foreign concern) and any foreign subsidi-
19 ary or affiliate (including any permanent foreign es-
20 tablishment) of any domestic concern which is con-
21 trolled in fact by such domestic concern, as determined
22 under regulations of the President;
23 (3) the term "goods " means any article, material,
24 supply or manufactured product, including inspection
25 and test equipment, and excluding technical data; and
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1 (4) the term "technology" means the information
2 and know-how that can be used to design, produce,
3 manufacture, utilize, or reconstruct goods, including
4 computer software and technical data, but not the goods
5 themselves.
6 EFFECTS ON OTHER ACTS
7 SEC. 14. (a) The Act of February 15, 1936 (49 Stat.
8 1140), relating to the licensing of exports of tinplate scrap, is
9 hereby superseded; but nothing contained in this Act shall be
10 construed to modify, repeal, supersede, or otherwise affect the
11 provisions of any other laws authorizing control over exports
12 of any commodity.
13 (b) The authority granted to the President under this
14 Act shall be exercised in such ,manner as to achieve effective
15 coordination with the authority exercised under section 38 of
16 the Arms Export Control Act (22 U. S. C. 2778).
17 (c) On October 1, 1979, the Mutual Defense Assistance
18 Control Act of 1951, as amended (22 U.S.C. 1611-1613d),
19 is superseded.
20 AUTHORIZATION OF APPROPRIATIONS
21 SEC. 15. (a) Notwithstanding any other provision of
22 law, no appropriation shall be made under any law to the
23 Department of Commerce for expenses to carry out the pur-
24 poses of this Act for any fiscal year commencing on or after
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1 October 1, 1980, unless previously and specifically author-
2 ized by legislation.
3 (b) There are authorized to be appropriated to the De-
4 partment of Commerce $8,000,000 (and such additional
5 amounts as may be necessary for increases in salary, pay,
6 retirement, other employee benefits authorized by law, and
7 other nondiscretionary costs) for fiscal year 1980 to carry out
8 the purposes of this Act, of which $1,250, 000 shall be availa-
9 ble only for purposes of establishing and maintaining the ca-
10 pability to make foreign availability assessments called for
11 by section 4(b)(1).
12 EFFECTIVE DATE
13 SEC. 16. (a) This Act takes effect upon the expiration
14 of the Export Administration Act of 1969.
15 (b) All outstanding delegations, rules,- regulations,
16 orders, licenses, or other forms of administrative action under
17 the Export Control Act of 1949 or section 6 of the Act of
18 July 2, 1940 (54 Stat. 714), or the Export Administration
19 Act of 1969 shall, until amended or revoked, remain in full
20 force and effect, the same as if promulgated under this Act.
21 TERMINATION DATE
22 SEC. 17. The authority granted by this Act terminates
23 on September 30, 1983, or upon any prior date which the
24 President by proclamation may designate.
Amend the title so as to read: "A bill to provide au-
thority to regulate exports, to improve the efficiency of
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export regulation, and to minimize interference with the
ability to engage in commerce.".
co
zz
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