Committee Documents Online -- 106th Congress



Export Administration Act of 1999

Section-by-Section

September 20, 1999

(Sec. 1) Table of Contents

Title I: General Authority
Title II: National Security Export Controls
Title III: Foreign Policy Export Controls
Title IV: Exemption For Agricultural Commodities, Medicine and Medical Supplies
Title V: Procedures for Export Licenses and Interagency Dispute Resolution
Title VI: International Arrangements; Foreign Boycotts; Sanctions; and Enforcement
Title VII: Export Control Authority and Regulations
Title VIII: Miscellaneous Provisions

(Sec. 2) Definitions

Title I: General Authority

(Sec. 101) Directs the Secretary of Commerce (Secretary) to establish and maintain a Commerce Control List specifying the items that require a license prior to export, and specifies the types of licenses that can be required.

(Sec. 102) Authorizes the President to delegate his authority to appointees confirmed by the Senate except for those instances when he must make a decision as a result of a dispute between the Secretaries of the dissenting Departments.

(Sec. 103) Requires the Secretary to keep the public informed of changes in export control policy. The Secretary must regularly consult with the U.S. businesses and organizations to obtain their views on U.S. export control policy.

(Sec. 104) Affirms that U.S. persons have the right to export, except to carry out the provisions of this Act.

(Sec. 105) Allows the Secretary to appoint export advisory committees with respect to items upon which controls have been, or may be, imposed.

Title II: National Security Export Controls

Subtitle A - Authority and Procedures

(Sec. 201) Authorizes the President to control exports for national security purposes that include the restriction of items that would contribute to the military capability of potential adversaries; the restriction of items that could contribute to the proliferation of weapons of mass destruction (WMD), chemical and biological weapons, or missile delivery systems; the restriction of items that could be used for terrorism; and the restriction of items, based on the end use or end user that could materially contribute to the proliferation of WMD.

(Sec. 202) Requires the Secretary to establish and maintain a National Security Control List. The Secretary creates the List, with the concurrence of the Secretary of Defense, and in consultation with other appropriate agencies.

(Sec. 203) Requires the President to establish a country tiering system within a risk management framework.

(Sec. 204) Prohibits controls on an item that incorporates controlled items valued at 25 percent or less of the total value of the items, unless the export would prove detrimental to the national security of the U.S. Reexports of foreign-made items incorporating U.S. controlled items are not restricted if the U.S. controlled item is 25 percent or less of the total value of the item (10 percent or less for reexport to terrorist countries).

(Sec. 205) Provides a process for interested persons outside of the Government to petition for changes to the control list.

Subtitle B - Foreign Availability and Mass-Market Status

(Sec. 211) Establishes criteria for foreign availability and mass-market status, the finding of which will result in the elimination of export controls for that item.

(Sec. 212) Allows the President to set aside the requirement to decontrol an item based on a foreign availability determination if such decontrol would jeopardize national security and such foreign availability is likely to be eliminated through negotiation with other countries. The set aside shall expire within 18 months of the determination if the President has been unable to eliminate foreign availability through negotiations.

(Sec. 213) Allows the President to set aside the requirement to decontrol an item based on a mass-market status determination if such decontrol would jeopardize national security. If the President sets aside the mass-market determination, he shall review the set aside determination every six months.

(Sec. 214) Establishes an Office of Technical Evaluation to study foreign availability and mass- market issues, as well as various assessments relating to the effectiveness of export controls in relation to technical developments, multilateral controls, and domestic economic impact.

Title III: Foreign Policy Export Controls

(Sec. 301) Authorizes the President to control exports for the purposes of promoting foreign policy objectives; promoting peace, stability and respect for human rights; and deterring and punishing terrorism. Prohibits controlling the reexport of items controlled for foreign policy purposes. Prohibits controlling an item for foreign policy purposes if the export of such item is in performance of a binding contract, unless the export of such item would constitute a serious threat to a foreign policy interest of the U.S.

(Sec. 302) Requires notice to be given 45 days prior to the imposition of a foreign policy control to afford time for public comment, consultation with Congress, and negotiation with the foreign country.

(Sec. 303) Requires foreign policy export controls to meet clearly stated objectives and other criteria designed to ensure the controls are effective.

(Sec. 304) Requires the President to submit a report to Congress detailing the intent to impose a foreign policy export control. The report must include explanations of the objectives and other foreign policy assessments.

(Sec. 305) Allows the President to impose a foreign policy export control after the report from Section 304 is sent to Congress.

(Sec. 306) Allows the President to impose a foreign policy control prior to completing the notice and report to Congress if he determines it is in the national interest, providing he completes those requirements within 60 days.

(Sec. 307) Requires the President to review all foreign policy controls every two years.

(Sec. 308) Allows the President to terminate any foreign policy export control not required by law at any time. Foreign policy controls that have achieved their objectives shall terminate.

(Sec. 309) Provides authority for President to impose controls to comply with international obligations.

(Sec. 310) Requires a license for the export of certain items to countries the Secretary of State has designated as supporting international terrorism. Mandates the Secretary to notify the Congress at least 30 days before issuing a license to a terrorist country.

Title IV: Exemption for Agricultural Commodities, Medicine, and Medical Supplies

(Sections 401 403) Exempts agricultural commodities, medicine and medical supplies from foreign policy controls with the exception of those items that are controlled for national security reasons. This title does not apply to countries against which an embargo is in effect under the Trading With the Enemy Act.

Title V: Procedures for Export Licenses and Interagency Dispute Resolution

(Sec. 501) Directs the Secretary to establish license application procedures, including time limits, referral requirements, and criteria for consideration.

(Sec. 502) Details the escalation procedure for which an interagency agreement cannot be reached at the working level. Provides for Department of Commerce representative to make the decision at the first level of review, but allows any representative of a department or agency that participated in the interagency committee to escalate the decision to the next higher level. Provides for majority vote at the next levels of review. Requires that matters be resolved or referred to the President within 90 days of application referral. Requires accurate and complete minutes of all interagency meetings, including each member's position on every decision.

Title VI: International Arrangements; Foreign Boycotts; Sanctions; and Enforcement

(Sec. 601) Encourages the President to participate in multilateral control regimes to increase the effectiveness and transparency of controls. Requires an annual report be sent to the Congress evaluating the effectiveness of each multilateral export control regime and detailing efforts to strengthen and harmonize the controls of such regimes.

(Sec. 602) Prohibits participation in boycotts imposed by a foreign country against a country that is friendly to the U.S.

(Sec. 603) Knowing violations of this Act are increased to a maximum criminal fine up to $10 million for corporations and $1 million for individuals. For multiple violations or other aggravated circumstances, the maximum imprisonment of 10 years can be increased to life. Civil penalties are increased to a maximum of $1 million.

(Sec. 604) Directs the President to impose sanctions on foreign entities that endanger U.S. national security by violating multilateral export control regimes. Allows exceptions from the imposition of sanctions if the U.S. relies on such foreign entity for the procurement of defense items and if the sanction would violate international agreements.

(Sec. 605) Requires the President to impose sanctions on those that contribute to the proliferation of missiles and items on the Missile Technology Control Regime (MTCR) Annex. Allows the President to waive the imposition of sanctions if it is determined that the waiver is essential to the national security of the U.S., or the U.S. procures defense articles from such foreign entity.

(Sec. 606) Requires the President to impose sanctions on those that contribute to the proliferation of chemical or biological weapons, or the development thereof. Allows the President to waive the imposition of sanctions if it is determined that the waiver is essential to the national security of the U.S., or the U.S. procures defense articles from such foreign entity.

(Sec. 607) Provides various authorities to effectively enforce the export control requirements set forth in the bill. Requires the prioritization of post-shipment verifications (PSV's), targeting PSV's to exports involving the greatest to national security. Includes authorization for awards to informants (Patriot provision), a freight forwarder's best practices program, and $5 million for an export licensing and enforcement computer system.

(Sec. 608) Describes administrative provisions for execution of enforcement.

Title VII - Export Control Authority and Regulations

(Sec. 701) Designates the Secretary of Commerce and the Under Secretary of Commerce for Export Administration to carry out the provisions of the Act. Authorizes an Assistant Secretary for Export Administration and Assistant Secretary for Export Enforcement to carry out their respective duties.

(Sec. 702) Delineates the provisions for ensuring the confidentiality of proprietary information associated with license processing. Increases criminal penalties to $50,000 and civil penalties to $5,000 for violation of disclosure of confidential information.

Title VIII - Miscellaneous Provisions

(Sec. 801) Requires specific items for inclusion in the Secretary's annual report to Congress on the administration of this Act, including the identification of processing time for the top 25 export items.

(Sec. 802) Savings provision providing that this Act does not affect administrative or judicial proceedings commenced under the previous authorizing Act (Export Administration Act of 1979) or Executive Order 12924, which are pending at the time this Act takes effect.