|FOR IMMEDIATE RELEASE:||CONTACT: CHRISTI HARLAN|
|Monday, August 9, 1999||202-224-0894|
Background: The Export Administration Act of 1999 governs the export of dual-use goods and technology from U.S. firms. The major objective of the bill is to enhance national security while promoting free trade. This is accomplished by removing export controls on items that can be easily obtained from independent sources, such as foreign companies or on the global market. Then the regulatory agencies will be able to focus their resources on reviewing the most critical items, while U.S. business will be able to export low-risk items without a license.
Foreign Availability: The bill exempts from control any item that is readily available from sources outside the United States. An item will be deemed to have foreign availability status if it is produced or may be acquired outside of the United States; at a price that is not excessive when compared to the cost of acquiring it from the U.S.; and is available in sufficient quantities to render control of the item ineffective. If an item satisfies these criteria, it will be decontrolled.
Mass Market: The bill exempts from control any item that is available on a "mass market" basis either in or outside the United States. An item has mass market status when it is produced and is available for sale in a large volume; is widely distributed through retail stores, direct marketing, electronic commerce or other channels; is easily shipped or transported; and may be used for its intended purpose without substantial and specialized service. If an item meets these criteria it is deemed to have mass market status and is decontrolled.
Increased Penalties/Enforcement: Criminal penalties -- up to the greater of $10 million, or 10 times the value of the export, for corporations; for individuals up to $1 million, or 10 times the value of the export, and up to 10 years imprisonment per violation. Civil penalties -- up to $1 million per violation and denial of export privileges. Strengthens post-shipment verifications (PSV) by prohibiting future exports to companies who deny PSVs. Creates Patriot Provision to encourage disclosure of information on possible violations of the law.
Agriculture/Medicine Exemption: Exempts medicine and agricultural products from future trade sanctions and sunsets existing sanctions in two years, except for Cuba and hostile countries.
Restrains Foreign Policy Sanctions: Imposes new disciplines, such as cost-benefit analysis, on future foreign policy sanctions. Sunsets existing sanctions in 2002 unless renewed by the President.
Multilateral Export Controls: Recognizes that unilateral export controls are largely ineffective and encourages the President to establish and participate in strong multilateral control regimes.