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S. 737 (96th): Export Administration Act of 1979

The text of the bill below is as of Sep 29, 1979 (Passed Congress).


PUBLIC LAW 96-72—SEPT. 29, 1979                                     93 STAT. 503
Public Law 96-72
96th Congress
                                   An Act
                                                                                     Sent 29 1979
To provide authority to regulate exports, to improve the efficiency of export          f!——'-
 regulation, and to minimize interference with the ability to engage in commerce.        [S. 737]

 Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,                                     Export
                                                                                    Administration
                                 SHORT TITLE                                        Act of 1979.

 SECTION 1. This Act may be cited as the "Export Administration                     50 use app. 2401
Act of 1979".                                                                       "•'^•
                                  FINDINGS
  SEC. 2. The Congress makes the following findings:                      ^P^                ^PP-
       (1) The ability of United States citizens to engage in interna- 2^"^-
    tional commerce is a fundamental concern of United States
    policy.
       (2) Exports contribute significantly to the economic well-being
    of the United States and the stability of the world economy by
    increasing employment and production in the United States, and
    by strengthening the trade balance and the value of the United
    States dollar, thereby reducing inflation. The restriction of
    exports from the United States can have serious adverse effects
    on the balance of payments and on domestic employment,
    particularly when restrictions applied by the United States are
    more extensive than those imposed by other countries.
       (3) It is important for the national interest of the United States
    that both the private sector and the Federal Government place a
    high priority on exports, which would strengthen the Nation's
    economy.
       (4) The availability of certain materials at home and abroad
    varies so that the quantity and composition of United States
    exports and their distribution among importing countries may
    affect the welfare of the domestic economy and may have an
    important bearing upon fulfillment of the foreign policy of the
    United States.
       (5) Exports of goods or technology without regard to whether
    they make a significant contribution to the military potential of
    individual countries or combinations of countries may adversely
    affect the national security of the United States.
       (6) Uncertainty of export control policy can curtail the efforts
    of American business to the detriment of the overall attempt to
    improve the trade balance of the United States.
       (7) Unreasonable restrictions on access to world supplies can
    cause worldwide political and economic instability, interfere
    with free international trade, and retard the growth and develop-
    ment of nations.
       (8) It is important that the administration of export controls
    imposed for national security purposes give special emphasis to
    the need to control exports of technology (and goods which

93 STAT. 504 PUBLIC LAW 96-72—SEPT. 29, 1979 contribute significantly to the transfer of such technology) which could make a significant contribution to the military potential of any country or combination of countries which would be detri- mental to the national security of the United States. (9) Minimization of restrictions on exports of agricultural commodities and products is of critical importance to the mainte- nance of a sound agricultural sector, to achievement of a positive balance of payments, to reducing the level of Federal expendi- tures for agricultural support programs, and to United States cooperation in efforts to eliminate malnutrition and world hunger. DECLARATION OF POUCY 50 use app. SEC. 3. The Congress makes the following declarations: ^^^^' (1) It is the policy of the United States to minimize uncertain- ties in export control policy and to encourage trade with all countries with which the United States has diplomatic or trading relations, except those countries with which such trade has been determined by the President to be against the national interest. (2) It is the policy of the United States to use export controls only after full consideration of the impact on the economy of the United States and only to the extent necessary— (A) to restrict the export of goods and technology which would make a significant contribution to the military poten- tial of any other country or combination of countries which would prove detrimental to the national security of the United States; (B) to restrict the export of goods and technology where necessary to further significantly the foreign policy of the United States or to fulfill its declared international obliga- tions; and (C) to restrict the export of goods where necessary to protect the domestic economy from the excessive drain of scarce materials and to reduce the serious inflationary impact of foreign demand. (3) It is the policy of the United States (A) to apply any necessary controls to the maximum extent possible in coopera- tion with all nations, and (B) to encourage observance of a uniform export control policy by all nations with which the United States has defense treaty commitments. (4) It is the policy of the United States to use its economic resources and trade potential to further the sound growth and stability of its economy as well as to further its national security and foreign policy objectives. (5) It is the policy of the United States— (A) to oppose restrictive trade practices or boycotts fos- tered or imposed by foreign countries against other countries friendly to the United States or against any United States person; , (B) to encourage and, in specified cases, require United ^,^ States persons engaged in the export of goods or technology -^—"^ or other information to refuse to take actions, including furnishing information or entering into or implementing agreements, which have the effect of furthering or support- ing the restrictive trade practices or boycotts fostered or imposed by any foreign country against a country friendly to the United States or against any United States person; and
PUBLIC LAW 96-72—SEPT. 29, 1979 93 STAT. 505 (C) to foster international cooperation and the develop- ment of international rules and institutions to assure rea- sonable access to world supplies. (6) It is the policy of the United States that the desirability of subjecting, or continuing to subject, particular goods or technol- ogy or other information to United States export controls should be subjected to review by and consultation with representatives of appropriate United States Government agencies and private industry. (7) It is the policy of the United States to use export controls, including license fees, to secure the removal by foreign countries of restrictions on access to supplies where such restrictions have or may have a serious domestic inflationary impact, have caused or may cause a serious domestic shortage, or have been imposed for purposes of influencing the foreign policy of the United States. In effecting this policy, the President shall make every reasonable effort to secure the removal or reduction of such restrictions, policies, or actions through international coopera- tion and agreement before resorting to the imposition of controls on exports from the United States. No action taken in fulfillment of the policy set forth in this paragraph shall apply to the export of medicine or medical supplies. (8) It is the policy of the United States to use export controls to encourage other countries to take immediate steps to prevent the use of their territories or resources to aid, encourage, or give sanctuary to those persons involved in directing, supporting, or participating in acts of international terrorism. To achieve this objective, the President shall make every reasonable effort to secure the removal or reduction of such assistance to interna- tional terrorists through international cooperation and agree- ment before resorting to the imposition of export controls. (9) It is the policy of the United States to cooperate with other countries with which the United States has defense treaty commitments in restricting the export of goods and technology which would make a significant contribution to the military potential of any country or combination of countries which would prove detrimental to the security of the United States and of those countries with which the United States has defense treaty commitments. (10) It is the policy of the United States that export trade by United States citizens be given a high priority and not be controlled except when such controls (A) are necessary to further fundamental national security, foreign policy, or short supply objectives, (B) will clearly further such objectives, and (C) are administered consistent with basic standards of due process. (11) It is the policy of the United States to minimize restrictions on the export of agricultural commodities and products. GENERAL PROVISIONS SEC. 4. (a) TYPES OF LICENSES.—Under such conditions as may be so use app. imposed by the Secretary which are consistent with the provisions of ^^^^• this Act, the Secretary may require any of the following types of export licenses: (1) A validated license, authorizing a specific export, issued pursuant to an application by the exporter. (2) A qualified general license, authorizing multiple exports, issued pursuant to an application by the exporter.
93 STAT. 506 PUBLIC LAW 96-72—SEPT. 29, 1979 (3) A general license, authorizing exports, without application by the exporter. (4) Such other licenses as may assist in the effective and efficient implementation of this Act. (b) COMMODITY CONTROL LIST,—The Secretary shall establish and maintain a list (hereinafter in this Act referred to as the "commodity control list") consisting of any goods or technology subject to export controls under this Act. (c) FOREIGN AVAILABIUTY.—In accordance with the provisions of this Act, the President shall not impose export controls for foreign policy or national security purposes on the export from the United States of goods or technology which he determines are available without restriction from sources outside the United States in signifi- cant quantities and comparable in quality to those produced in the United States, unless the President determines that adequate evi- dence has been presented to him demonstrating that the absence of such controls would prove detrimental to the foreign policy or national security of the United States. (d) RIGHT OF EXPORT.—No authority or permission to export may be required under this Act, or under regulations issued under this Act, except to carry out the policies set forth in section 3 of this Act. (e) DELEGATION OF AUTHORITY.—The President may delegate the power, authority, and discretion conferred upon him by this Act to such departments, agencies, or officials of the Government as he may consider appropriate, except that no authority under this Act may be delegated to, or exercised by, any official of any department or agency the head of which is not appointed by the President, by and with the advice and consent of the Senate. The President may not delegate or transfer his power, authority, and discretion to overrule or modify any recommendation or decision made by the Secretary, the Secre- tary of Defense, or the Secretary of State pursuant to the provisions of this Act. (f) NOTIFICATION OF THE PUBLIC; CONSULTATION WITH BUSINESS.— The Secretary shall keep the public fully apprised of changes in export control policy and procedures instituted in conformity with this Act with a view to encouraging trade. The Secretary shall meet regularly with representatives of the business sector in order to obtain their views on export control policy and the foreign availabil- ity of goods and technology. NATIONAL SECURITY CONTROLS 50 use app. SEC. 5. (a) AUTHORITY.—(1) In order to carry out the policy set forth ^^^^- in section 3(2)(A) of this Act, the President may, in accordance with the provisions of this section, prohibit or curtail the export of any goods or technology subject to the jurisdiction of the United States or exported by any person subject to the jurisdiction of the United States. The authority contained in this subsection shall be exercised by the Secretary, in consultation with the Secretary of Defense, and such other departments and agencies as the Secretary considers appropriate, and shall be implemented by means of export licenses described in section 4(a) of this Act. Publication in (2)(A) Whenever the Secretary makes any revision with respect to ^^""^ any goods or technology, or with respect to the countries or destina- ^^ ^' tions, affected by export controls imposed under this section, the Secretary shall publish in the Federal Register a notice of such revision and shall specify in such notice that the revision relates to controls imposed under the authority contained in this section.
PUBLIC LAW 96-72—SEPT. 29, 1979 93 STAT. 507 (B) Whenever the Secretary denies any export license under this Export license section, the Secretary shall specify in the notice to the applicant of denial, notice. the denial of such license that the license was denied under the authority contained in this section. The Secretary shall also include in such notice what, if any, modifications in or restrictions on the goods or technology for which the license was sought would allow such export to be compatible with controls imposed under this section, or the Secretary shall indicate in such notice which officers and employees of the Department of Commerce who are familiar with the application will be made reasonably available to the applicant for consultation with regard to such modifications or restriction, if appropriate. (3) In issuing regulations to carry out this sectiQn, particular Regulatory attention shall be given to the difficulty of devising effective safe- safeguards for U.S. security. guards to prevent a country that poses a threat to the security of the United States from diverting critical technologies to military use, the difficulty of devising effective safeguards to protect critical goods, and the need to take effective measures to prevent the reexport of critical technologies from other countries to countries that pose a threat to the security of the United States. Such regulations shall not be based upon the assumption that such effective safeguards can be devised. (b) PoucY TOWARD INDIVIDUAL COUNTRIES.—In administering export controls for national security purposes under this section, United States policy toward individual countries shall not be deter- mined exclusively on the basis of a country's Communist or non- Communist status but shall take into account such factors as the country's present and potential relationship to the United States, its present and potential relationship to countries friendly or hostile to the United States, its ability and willingness to control retransfers of United States exports in accordance with United States policy, and such other factors as the President considers appropriate. The Presi- dent shall review not less frequently than every three years in the case of controls maintained cooperatively with other nations, and annually in the case of all other controls. United States policy toward individual countries to determine whether such policy is appropriate in light of the factors specified in the preceding sentence. (c) CONTROL LIST.—(1) The Secretary shall establish and maintain, as part of the commodity control list, a list of all goods and technology subject to export controls under this section. Such goods and technol- ogy shall be clearly identified as being subject to controls under this section. (2) The Secretary of Defense and other appropriate departments and agencies shall identify goods and technology for inclusion on the list referred to in paragraph (1). Those items which the Secretary and the Secretary of Defense concur shall be subject to export controls under this section shall comprise such list. If the Secretary and the Secretary of Defense are unable to concur on such items, the matter shall be referred to the President for resolution. (3) The Secretary shall issue regulations providing for review of the Regulations. list established pursuant to this subsection not less frequently than every 3 years in the case of controls maintained cooperatively with other countries, and annually in the case of all other controls, in order to carry out the policy set forth in section 3(2XA) and the provisions of this section, and for the prompt issuance of such revisions of the list as may be necessary. Such regulations shall Submittal of provide interested Government agencies and other affected or poten- written data, views, or tially affected parties with an opportunity, during such review, to arguments. submit written data, views, or arguments, with or without oral presentation. Such regulations shall further provide that, as part of
93 STAT. 508 PUBLIC LAW 96-72—SEPT. 29, 1979 such review, an assessment be made of the availability from sources outside the United States, or any of its territories or possessions, of goods and technology comparable to those controlled under this section. The Secretary and any agency rendering advise with respect to export controls shall keep adequate records of all decisions made with respect to revision of the list of controlled goods and technology, including the factual and analjrtical basis for the decision, and, in the case of the Secretary, any dissenting recommendations received from any agency. Review. (d) MiuTARiLY CRITICAL TECHNOLOGIES.—(1) The Secretary, in con- sultation with the Secretary of Defense, shall review and revise the list established pursuant to subsection (c), as prescribed in paragraph (3) of such subsection, for the jJurpose of insuring that export controls imposed under this section cover and (to the maximum extent consistent with the purposes of this Act) are limited to militarily critical goods and technologies and the mechanisms through which such goods and technologies may be effectively transferred. (2) The Secretary of Defense shall bear primary responsibility for developing a list of militarily critical technologies. In developing such list, primary emphasis shall be given to— (A) arrays of design and manufacturing know-how, (B) keystone manufacturing, inspection, and test equipment, and (C) goods accompanied by sophisticated operation, application, or maintenance know-how, which are not possessed by countries to which exports are controlled under this section and which, if exported, would permit a significant advance in a military system of any such country. (3) The list referred to in paragraph (2) shall be sufficiently specific to guide the determinations of any official exercising export licensing responsibilities under this Act. Publication in (4) The initial version of the list referred to in paragraph (2) shall be Federal completed and published in an appropriate form in the Federal Register. Register not later than October 1,1980. (5) The list of militarily critical technologies developed primarily by the Secretary of Defense pursuant to paragraph (2) shall become a part of the commodity control list, subject to the provisions of subsection (c) of this section. Report to (6) The Secretary of Defense shall report annually to the Congress Congress. on actions taken to carry out this subsection. (e) EXPORT LICENSES.—(1) The Congress finds that the effectiveness and efficiency of the process of making export licensing determina- tions under this section is severely hampered by the large volume of validated export license applications required to be submitted under this Act. Accordingly, it is the intent of Congress in this subsection to encourage the use of a qualified general license in lieu of a validated license. Validated (2) To the maximum extent practicable, consistent with the licenses, national security of the United States, the Secretary shall require a requirement. validated license under this section for the export of goods or technology only if— (A) the export of such goods or technology is restricted pursu- ant to a multilateral agreement, formal or informal, to which the United States is a party and, under the terms of such multi- lateral agreement, such export requires the specific approval of the parties to such multilateral agreement; (B) with respect to such goods or technology, other nations do not possess capabilities comparable to those possessed by the United States; or
PUBLIC LAW 96-72—SEPT. 29, 1979 93 STAT. 509 (C) the United States is seeking the agreement of other suppliers to apply comparable controls to such goods or technol- ogy and, in the judgment of the Secretary, United States export controls on such goods or technology, by means of such license, are necessary pending the conclusion of such agreement. (3) To the maximum extent practicable, consistent with the Qualified national security of the United States, the Secretary shall require a general license. qualified general license, in lieu of a validated license, under this section for the export of goods or technology if the export of such goods or technologj^ is restricted pursuant to a multilateral agree- ment, formal or informal, to which the United States is a party, but such export does not require the specific approval of the parties to such multilateral agreement. (4) Not later than July 1, 1980, the Secretary shall establish procedures for the approval of goods and technology that may be exported pursuant to a qualified general license. (f) FOREIGN AVAILABILITY.—(1) The Secretary, in consultation with Review, appropriate Government agencies and with appropriate technical advisory committees established pursuant to subsection (h) of this section, shall review, on a continuing basis, the availability, to countries to which exports are controlled under this section, from sources outside the United States, including countries which partici- pate with the United States in multilateral export controls, of any goods or technology the export of which requires a validated license under this section. In any case in which the Secretary determines, in accordance with procedures and criteria which the Secretary shall by regulation establish, that any such goods or technology are available in fact to such destinations from such sources in sufficient quantity and of sufficient quality so that the requirement of a validated license for the export of such goods or technology is or would be ineffective in achieving the purpose set forth in subsection (a) of this section, the Secretary may not, after the determination is made, require a validated license for the export of such goods or technology during the period of such foreign availability, unless the President deter- mines that the absence of export controls under this section would prove detrimental to the national security of the United States. In Export controls any case in which the President determines that export controls maintenance. under this section must be maintained notwithstanding foreign availability, the Secretary shall publish that determination together with a concise statement of its basis, and the estimated economic impact of the decision. (2) The Secretary shall approve any application for a validated Validated license which is required under this section for the export of any license approval. goods or technology to a particular country and which meets all other requirements for such an application, if the Secretary determines that such goods or technology will, if the license is denied, be available in fact to such country from sources outside the United States, including countries which participate with the United States in multilateral export controls, in sufficient quantity and of sufficient quality so that denial of the license would be ineffective in achieving the purpose set forth in subsection (a) of this section, subject to the exception set forth in paragraph (1) of this subsection. In any case in which the Secretary makes a determination of foreign availability under this paragraph with respect to any goods or technology, the Secretary shall determine whether a determination of foreign avail- ability under paragraph (1) with respect to such goods or technology is warranted. (3) With respect to export controls imposed under this section, any determination of foreign availability which is the basis of a decision
93 STAT. 510 PUBLIC LAW 96-72—SEPT. 29, 1979 to grant a license for, or to remove a control on, the export of a good or technology, shall be made in writing and shall be supported by reliable evidence, including scientific or physical examination, expert opinion based upon adequate factual information, or intelligence information. In assessing foreign availability with respect to license applications, uncorroborated representations by applicants shall not be deemed sufficient evidence of foreign availability. (4) In any case in which, in accordance with this subsection, export controls are imposed under this section notwithstanding foreign availability, the President shall take steps to initiate negotiations with the governments of the appropriate foreign countries for the purpose of eliminating such availability. Whenever the President has reason to believe goods or technology subject to export control for national security purposes by the United States may become availa- ble from other countries to countries to which exports are controlled under this section and that such availability can be prevented or eliminated by means of negotiations with such other countries, the President shall promptly initiate negotiations with the governments of such other countries to prevent such foreign availability. Information (5) In order to further carry out the policies set forth in this Act, the gathering. Secretary shall establish, within the Office of Export Administration of the Department of Commerce, a capability to monitor and gather information with respect to the foreign availability of any goods or technology subject to export controls under this Act. (6) Each department or agency of the United States with responsi- bilities with respect to export controls, including intelligence agen- cies, shall, consistent with the protection of intelligence sources and methods, furnish information to the Office of Export Administration concerning foreign availability of goods and technology subject to export controls under this Act, and such Office, upon request or where appropriate, shall furnish to such departments and agencies the information it gathers and receives concerning foreign availability. Regulations. (g) INDEXING.—In order to ensure that requirements for validated licenses and qualified general licenses are periodically removed as goods or technology subject to such requirements become obsolete with respect to the national security of the United States, regulations issued by the Secretary may, where appropriate, provide for annual increases in the performance levels of goods or technology subject to any such licensing requirement. Any such goods or technology which no longer meet the performance levels established by the latest such incresise shall be removed from the list established pursuant to subsection (c) of this section unless, under such exceptions and under such procedures as the Secretary shall prescribe, any other depart- ment or agency of the United States objects to such removal and the Secretary determines, on the basis of such objection, that the goods or Site visitation technology shall not be removed from the list. The Secretary shall requirements, also consider, where appropriate, removing site visitation require- removal. ments for goods and technology which are removed from the list unless objections described in this subsection are raised. (h) TECHNICAL ADVISORY COMMITTEES.—(1) Upon written request by representatives of a substantial segment of any industry which produces any goods or technology subject to export controls under this section or being considered for such controls because of their significance to the national security of the United States, the Secre- tary shall appoint a technical advisory committee for any such goods or technology which the Secretary determines are difficult to evalu- ate because of questions concerning technical matters, worldwide availability, and actual utilization of production and technology, or
PUBLIC LAW 96-72—SEPT. 29, 1979 93 STAT. 511 licensing procedures. Each such committee shall consist of repre- Membership, sentatives of United States industry and Government, including the Departments of Commerce, Defense, and State and, in the discretion of the Secretary, other Government departments and agencies. No Term of office person serving on any such committee who is a representative of industry shall serve on such committee for more than four consecu- tive years. (2) Technical advisory committees established under paragraph (1) shall advise and assist the Secretary, the Secretary of Defense, and any other department, agency, or official of the Government of the United States to which the President delegates authority under this Act, with respect to actions designed to carry out the policy set forth in section 3(2)(A) of this Act. Such committees, where they have expertise in such matters, shall be consulted with respect to questions involving (A) technical matters, (B) worldwide availability and actual utilization of production technology, (C) licensing procedures which affect the level of export controls applicable to any goods or technol- ogy, and (D) exports subject to multilateral controls in which the United States participates, including proposed revisions of any such multilateral controls. Nothing in this subsection shall prevent the Secretary or the Secretary of Defense from consulting, at any time, with any person representing industry or the general public, regard- less of whether such person is a member of a technical advisory committee. Members of the public shall be given a reasonable opportunity, pursuant to regulations prescribed by the Secretary, to present evidence to such committees. (3) Upon request of any member of any such committee, the Travel and other Secretary may, if the Secretary determines it appropriate, reimburse expenses, reimbursement. such member for travel, subsistence, and other necessary expenses incurred by such member in connection with the duties of such member. (4) Each such committee shall elect a chairman, and shall meet at least every three months at the call of the chairman, unless the chairman determines, in consultation with the other members of the committee, that such a meeting is not necessary to achieve the purposes of this subsection. Each such committee shall be terminated Termination after a period of 2 years, unless extended by the Secretary for additional periods of 2 years. The Secretary shall consult each such committee with respect to such termination or extension of that committee. (5) To facilitate the work of the technical advisory committees, the Secretary, in conjunction with other departments and agencies par- ticipating in the administration of this Act, shall disclose to each such committee adequate information, consistent with national security, pertaining to the reasons for the export controls which are in effect or contemplated for the goods or technology with respect to which that committee furnishes advice. (6) Whenever a technical advisory committee certifies to the Export controls Secretary that goods or technology with respect to which such maintenance. committee was appointed have become available in fact, to countries to which exports are controlled under this section, from sources outside the United States, including countries which participate with the United States in multilateral export controls, in sufficient quantity and of sufficient quality so that requiring a validated license for the export of such goods or technology would be ineffective in achieving the purpose set forth in subsection (a) of this section, and provides adequate documentation for such certification, in accord- ance with the procedures established pursuant to subsection (f)(1) of this section, the Secretary shall investigate such availability, and if
93 STAT. 512 PUBLIC LAW 96-72—SEPT. 29, 1979 such availability is verified, the Secretary shall remove the require- ment of a validated license for the export of the goods or technology, unless the President determines that the absence of export controls under this section would prove detrimental to the national security of Determination, the United States. In any case in which the President determines that publication. export controls under this section must be maintained notwithstand- ing foreign availability, the Secretary shall publish that determina- tion together with a concise statement of its basis and the estimated economic impact of the decision. Coordinating (i) MULTILATERAL EXPORT CONTROLS.—The President shall enter Committee, functions. into negotiations with the governments participating in the group known as the Coordinating Committee (hereinafter in this subsection referred to as the "Committee") with a view toward accomplishing the following objectives: (1) Agreement to publish the list of items controlled for export by agreement of the Committee, together with all notes, under- standings, and other aspects of such agreement of the Commit- tee, and all changes thereto. (2) Agreement to hold periodic meetings with high-level repre- sentatives of such governments, for the purpose of discussing export control policy issues and issuing policy guidance to the Committee. (3) Agreement to reduce the scope of the export controls imposed by agreement of the Committee to a level acceptable to and enforceable by all governments participating in the Committee. (4) Agreement on more effective procedures for enforcing the export controls agreed to pursuant to paragraph (3). (j) COMMERCIAL AGREEMENTS WITH CERTAIN COUNTRIES.—(1) Any United States firm, enterprise, or other nongovernmental entity which, for commercial purposes, enters into any agreement with any agency of the government of a country to which exports are restricted for national security purposes, which agreement cites an intergovern- mental agreement (to which the United States and such country are parties) calling for the encouragement of technical cooperation and is intended to result in the export from the United States to the other party of unpublished technical data of United States origin, shall report the agreement with such agency to the Secretary. (2) The provisions of paragraph (1) shall not apply to colleges, universities, or other educational institutions. (k) NEGOTIATIONS WITH OTHER COUNTRIES.—The Secretary of State>in consultation with the Secretary of Defense, the Secretary of Commerce, and the heads of other appropriate departments and agencies, shall be responsible for conducting negotiations with other countries regarding their cooperation in restricting the export of goods and technology in order to carry out the policy set forth in section 3(9) of this Act, as authorized by subsection (a) of this section, including negotiations with respect to which goods and technology should be subject to multilaterally agreed export restrictions and what conditions should apply for exceptions from those restrictions. (1) DIVERSION TO MILITARY U S E OF CONTROLLED GOODS OR TECHNOL- OGY.—(1) Whenever there is reliable evidence that goods or technol- ogy, which were exported subject to national security controls under this section to a country to which exports are controlled for national security purposes, have been diverted to significant military use in violation of the conditions of an export license, the Secretary for as long as that diversion to significant military use continues— (A) shall deny all further exports to the party responsible for that diversion of any goods or technology subject to national
PUBLIC LAW 96-72—SEPT. 29, 1979 93 STAT. 513 security controls under this section which contribute to that particular mUitary use, regardless of whether such goods or technology are available to that country from sources outside the United States; and (B) may take such additional steps under this Act with respect to the party referred to in subparagraph (A) as are feasible to deter the fiurther military use of the previously exported goods or technology. (2) As used in this subsection, the terms ''diversion to significant "Diversion to mUitary use" and "si^iificant military use" means the use of United significant military use" Stat^ goods or technolo^ to design or produce any item on the and "significant United States Munitions List. military use". FOREIGN POUCY CONTROLS SEC. 6. (a) AUTHORITY.—(1) In order to cany out the policy set forth 50 u s e app. in paragraph (2XB), (7), or (8) of section 3 of this Act, the President 2405. may prohibit or curtail the exportation of any goods, technology, or other information subject to the jurisdiction of the United States or exported by any person subject to the jurisdiction of the United Stat^, to the extent necessary to further significantly the foreign policy of the United States or to fulfill its declared international obligations. The authority granted by this subsection shall be exer- cised by the Secretary, in consultation with the Secretary of State and such other departments and agencies as the Secretary considers appropriate, and shall be implemented by means of export licenses issued by the Secretary. (2) Export controls maintained for foreign policy purposes shall Expiration date. expire on December 31,1979, or one year after imposition, whichever is later, unless extended by the President in accordance with subsec- tions (b) and (e). Any such extension and any subsequent extension shaU not be for a period of more than one year. (3) Whenever the Secretary denies any export license under this Export license subsection, the Secretary shaQ specify in the notice to the applicant of denial. the denial of such license that the license was denied under the authority contained in this subsection, and the reasons for such denial, with reference to the criteria set forth in subsection (b) of this section. The Secretary shall also include in such notice what, if any, modifications in or restrictions on the goods or technology for which the license was sought would allow such export to be compatible with controls implemented under this section, or the Secretary shall indicate in such notice which officers and employees of the Departr ment of Commerce who are familiar with the application will be made reasonably available to the applicant for consultation with regard to such modifications or restrictions, if appropriate. (4) In accordance with the provisions of section 10 of this Act, the Export license Secretary of State shall have the right to review any export license application, application under this section which the Secretary of Stote requests to review. (b) CRITERIA.—When imposing, expanding, or extending export controls under this section, the President shall consider— (1) the probability that such controls will achieve the intended foreign policy purpose, in light of other factors, including the availability from other countries of the goods or technology proposed for such controls; (2) the compatibility of the proposed controls with the foreign policy objectives of the United States, including the effort to counter international terrorism, and with overall United States 59-194 0 — 81 35 : QL3
93 STAT. 514 PUBLIC LAW 96-72—SEPT. 29, 1979 policy toward the country which is the proposed target of the controls; (3) the reaction of other countries to the imposition or expan- sion of such export controls by the United States; (4) the likely effects of the proposed controls on the export performance of the United States, on the competitive position of the United States in the international economy, on the interna- tional reputation of the United States as a supplier of goods and technology, and on individual United States companies and their employees and communities, including the effects of the controls on existing contracts; (5) the ability of the United States to enforce the proposed controls effectively; and (6) the foreign policy consequences of not imposing controls. (c) CONSULTATION WITH INDUSTRY.—The Secretary, before imposing export controls under this section, shall consult with such affected United States industries as the Secretary considers appropriate, with respect to the criteria set forth in paragraphs (1) and (4) of subsection 0)) and such other matters as the Secretary considers appropriate. (d) ALTERNATIVE MEANS.—Before resorting to the imposition of export controls under this section, the President shall determine that reasonable efforts have been made to achieve the purposes of the controls through negotiations or other alternative means. (e) NOTIFICATION T O CONGRESS.—The President in every possible instance shall consult with the Congress before imposing any export Contents of control Under this section. Except as provided in section 7(g)(3) of this report. ^^^^ whenever the President imposes, expands, or extends export controls under this section, the President shall immediately notify the Congress of such action and shall submit with such notification a report specifying— (1) the conclusions of the President with respect to each of the criteria set forth in subsection (b); and (2) the nature £ind results of any alternative means attempted under subsection (d), or the reasons for imposing, extending, or expanding the control without attempting any such alternative means. Such report shall also indicate how such controls will further signifi- cantly the foreign policy of the United States or will further its declared international obligations. To the extent necessary to further the effectiveness of such export control, portions of such report may be submitted on a classified basis, and shall be subject to the provisions of section 12(c) of this Act. (f) EXCLUSION FOR MEDICINE AND MEDICAL SUPPUES.—This section does not authorize export controls on medicine or medical supplies. It is the intent of Congress that the President not impose export controls under this section on any goods or technology if he deter- mines that the principal effect of the export of such goods or technology would be to help meet basic human needs. This subsection shEill not be construed to prohibit the President from imposing restrictions on the export of medicine or medical supplies, under the 50 use 1701 International Emergency Economic Powers Act. This subsection ^°^- shall not apply to any export control on medicine or medical supplies which is in effect on the effective date of this Act. (g) FOREIGN AVAILABILITY.—In applying export controls under this section, the President shall take all feasible steps to initiate and conclude negotiations with appropriate foreign governments for the purpose of securing the cooperation of such foreign governments in controlling the export to countries and consignees to which the
PUBLIC LAW 96-72—SEPT. 29, 1979 93 STAT. 515 United States export controls apply of any goods or technology comparable to goods or technology controlled under this section. (h) INTERNATIONAL OBLIGATIONS.—The provisions of subsections (b), (c), (d), (f), and (g) shall not apply in any case in which the President exercises the authority contained in this section to impose export controls, or to approve or deny export license applications, in order to fulfill obligations of the United States pursuant to treaties to which the United States is a party or pursuant to other international agreements. (i) COUNTRIES SUPPORTING INTERNATIONAL TERRORISM.—The Secre- Notification to tary and the Secretary of State shall notify the Committee on Foreign congressional committees. Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate before any license is approved for the export of goods or technology valued at more than $7,000,000 to any country concerning which the Secretary of State has made the following determinations: (1) Such country has repeatedly provided support for acts of international terrorism. (2) Such exports would make a significant contribution to the military potential of such country, including its military logistics capability, or would enhance the ability of such country to support acts of international terrorism. (j) CRIME CONTROL INSTRUMENTS.—(1) Crime control and detection instruments and equipment shall be approved for export by the Secretary only pursuant to a validated export license. (2) The provisions of this subsection shall not apply with respect to exports to countries which are members of the North Atlantic Treaty Organization or to Japan, Australia, or New Zealand, or to such other countries as the President shall designate consistent with the pur- poses of this subsection and section 502B of the Foreign Assistance Act of 1961. 22 u s e 2304. (k) CONTROL LIST.—The Secretary shall establish and maintain, as part of the commodity control list, a list of any goods or technology subject to export controls under this section, and the countries to which such controls apply. Such goods or technology shall be clearly identified as subject to controls under this section. Such list shall consist of goods and technology identified by the Secretary of State, with the concurrence of the Secretary. If the Secretary and the Secretary of State are unable to agree on the list, the matter shall be referred to the President. Such list shall be reviewed not less Periodical frequently than every three years in the case of controls maintained review. cooperatively with other countries, and annually in the case of all other controls, for the purpose of making such revisions as are necessary in order to carry out this section. During the course of such review, an assessment shall be made periodically of the availability from sources outside the United States, or any of its territories or possessions, of goods and technology comparable to those controlled for export from the United States under this section. SHORT SUPPLY CONTROLS SEC. 7. (a) AUTHORITY.—(1) In order to carry out the policy set forth 50 u s e app. in section 3(2)(C) of this Act, the President may prohibit or curtail the 2406. export of any goods subject to the jurisdiction of the United States or exported by any person subject to the jurisdiction of the United States. In curtailing exports to carry out the policy set forth in section Export licenses, 3(2)(C) of this Act, the President shall allocate a portion of export allocation. licenses on the basis of factors other than a prior history of exporta- tion. Such factors shall include the extent to which a country engages
93 STAT. 516 PUBLIC LAW 96-72—SEPT. 29, 1979 in equitable trade practices with respect to United States goods and treats the United States equitably in times of short supply. Publication in (2) Upon imposing quantitative restrictions on exports of any goods Federal to carry out the policy set forth in section 3(2)(C) of this Act, the Register. Secretary shall include in a notice published in the Federal Register with respect to such restrictions an invitation to all interested parties to submit written comments within 15 days from the date of publica- tion on the impact of such restrictions and the method of licensing used to implement them. Fees. (3) In imposing export controls under this section, the President's authority shall include, but not be limited to, the imposition of export license fees. (b) MONITORING.—(1) In order to carry out the policy set forth in section 3(2)(C) of this Act, the Secretary shall monitor exports, and contracts for exports, of any good (other than a commodity which is subject to the reporting requirements of section 812 of the 7 u s e 612C-3. Agricultural Act of 1970) when the volume of such exports in relation to domestic supply contributes, or may contribute, to an increase in domestic prices or a domestic shortage, and such price increase or shortage has, or may have, a serious adverse impact on the economy or any sector thereof. Any such monitoring shall commence at a time adequate to assure that the monitoring will result in a data base sufficient to enable policies to be developed, in accordance with section 3(2)(C) of this Act, to mitigate a short supply situation or serious inflationary price rise or, if export controls are needed, to permit imposition of such controls in a timely manner. Information which the Secretary requires to be furnished in effecting such monitoring shall be confidential, except as provided in paragraph (2) of this subsection. Weekly or (2) The results of such monitoring shall, to the extent practicable, monthly reports. be aggregated and included in weekly reports setting forth, with respect to each item monitored, actual and anticipated exports, the destination by country, and the domestic and worldwide price, supply, and demand. Such reports may be made monthly if the Secretary determines that there is insufficient information to justify weekly reports. (3) The Secretary shall consult with the Secretary of Energy to determine whether monitoring or export controls under this section are warranted with respect to exports of facilities, machinery, or equipment normally and principally used, or intended to be used, in the production, conversion, or transportation of fuels and energy (except nuclear energy), including, but not limited to, drilling rigs, platforms, and equipment; petroleum refineries, natural gas process- ing, liquefaction, and gasification plants; facilities for production of synthetic natural gas or synthetic crude oil; oil and gas pipelines, pumping stations, and associated equipment; and vessels for trans- porting oil, gas, coal, and other fuels. (c) PETITIONS FOR MONITORING OR CONTROLS.—(1)(A) Any entity, including a trade association, firm, or certified or recognized union or group of workers, which is representative of an industry or a substantial segment of an industry which processes metallic materi- als capable of being recycled with respect to which an increase in domestic prices or a domestic shortage, either of which results from increased exports, has or may have a significant adverse effect on the national economy or any sector thereof, may transmit a written petition to the Secretary requesting the monitoring of exports, or the imposition of export controls, or both, with respect to such material, in order to carry out the policy set forth in section 3(2)(C) of this Act.
PUBLIC LAW 96-72—SEPT. 29, 1979 93 STAT. 517 (B) Each petition shall be in such form as the Secretary shall prescribe and shall contain information in support of the action requested. The petition shall include any information reasonably available to the petitioner indicating (i) that there h£is been a significant increase, in relation to a specific period of time, in exports of such material in relation to domestic supply, and (ii) that there has been a significant increase in the price of such material or a domestic shortage of such material under circumstances indicating the price increase or domestic shortage may be related to exports. (2) Within 15 days after receipt of any petition described in Publication in paragraph (1), the Secretary shall publish a notice in the Federal Federal Register. Register. The notice shall (A) include the name of the material which is the subject of the petition, (B) include the Schedule B number of the material as set forth in the Statistical Classification of Domestic and Foreign Commodities Exported from the United States, (C) indicate whether the petitioner is requesting that controls or monitoring, or both, be imposed with respect to the exportation of such material, and (D) provide that interested persons shall have a period of 30 days commencing with the date of publication of such notice to submit to the Secretary written data, views, or arguments, with or without opportunity for oral presentation, with respect to the matter in- volved. At the request of the petitioner or any other entity described Hearings. in paragraph (1)(A) with respect to the material which is the subject of the petition, or at the request of any entity representative of producers or exporters of such material, the Secretary shall conduct public hearings with respect to the subject of the petition, in which case the 30-day period may be extended to 45 days. (3) Within 45 days after the end of the 30- or 45-day period described in paragraph (2), as the case may be, the Secretary shall— (A) determine whether to impose monitoring or controls, or both, on the export of such material, in order to carry out the policy set forth in section 3(2)(C) of this Act; and (B) publish in the Federal Register a detailed statement of the Publication in reasons for such determination. Federal Register. (4) Within 15 days after making a determination under paragraph Publication in (3) to impose monitoring or controls on the export of a material, the Federal Secretary shall publish in the Federal Register proposed regulations Register. with respect to such monitoring or controls. Within 30 days following the publication of such proposed regulations, and after considering any public comments thereon, the Secretary shall publish and implement final regulations with respect to such monitoring or controls. (5) For purposes of publishing notices in the Federal Register and Petitions, scheduling public hearings pursuant to this subsection, the Secretary consolidation. may consolidate petitions, and responses thereto, which involve the same or related materials. (6) If a petition with respect to a particular material or group of materials has been considered in accordance with all the procedures prescribed in this subsection, the Secretary may determine, in the absence of significantly changed circumstances, that any other peti- tion with respect to the same material or group of materials which is filed within 6 months after consideration of the prior petition has been completed does not merit complete consideration under this subsection. (7) The procedures and time limits set forth in this subsection with respect to a petition filed under this subsection shall take precedence over any review undertaken at the initiative of the Secretary with respect to the same subject as that of the petition.
93 STAT. 518 PUBLIC LAW 96-72—SEPT. 29, 1979 Temporary (8) The Secretary may impose monitoring or controls on a tempo- monitoring or controls. rary basis after a petition is filed under paragraph (1)(A) but before the Secretary m ^ e s a determination under paragraph (3) if t h e Secretary considers such action to be necessary to carry out t h e policy set forth in section 3(2)(C) of this Act. (9) The authority under this subsection shall not be construed to affect the authority of the Secretary under any other provision of this Act. (10) Nothing contained in this subsection shall be construed to preclude submission on a confidential basis to the Secretary of information relevant to a decision to impose or remove monitoring or controls under the authority of this Act, or to preclude consideration of such information by the Secretary in reaching decisions required under this subsection. The provisions of this paragraph shall not be construed to affect the applicability of section 552(b) of title 5, United State Code. (d) DOMESTICALLY PRODUCED CRUDE OIL.—(1) Notwithstanding any other provision of this Act and notwithstanding subsection (u) of section 28 of the Mineral Leasing Act of 1920 (30 U.S.C. 185), no domestically produced crude oil transported by pipeline over right-of- way granted pursuant to section 203 of the Trans-Alaska Pipeline Authorization Act (43 U.S.C. 1652) (except any such crude oil which (A) is exported to an adjacent foreign country to be refined and consumed therein in exchange for the same quantity of crude oil being exported from that country to the United States; such exchange must result through convenience or increased efficiency of transpor- tation in lower prices for consumers of petroleum products in the United States as described in paragraph (2)(A)(ii) of this subsection, or (B) is temporarily exported for convenience or increased efficiency of transportation across parts of an adjacent foreign country and reenters the United States) may be exported from the United States, or any of its territories and possessions, unless the requirements of paragraph (2) of this subsection are met. Exportation, (2) Crude oil subject to the prohibition contained in paragraph (1) conditions. may be exported only if— (A) the President makes and publishes express findings that exports of such crude oil, including exchanges— (i) will not diminish the total quantity or quality of petroleum refined within, stored within, or legally commit- ted to be transported to and sold within the United States; (ii) will, within 3 months following the initiation of such exports or exchanges, result in (I) acquisition costs to the refiners which purchase the imported crude oil being lower than the acquisition costs such refiners would have to pay for the domestically produced oil in the absence of such an export or exchange, and (II) not less than 75 percent of such savings in costs being reflected in wholesale and retail prices of products refined from such imported crude oil; (iii) will be made only pursuant to contracts which may be terminated if the crude oil supplies of the United States are interrupted, threatened, or diminished; (iv) are clearly necessary to protect the national interest; and (v) are in accordance with the provisions of this Act; and Report to (B) the President reports such findings to the Congress and the Congress. Congress, within 60 days thereafter, agrees to a concurrent resolution approving such exports on the basis of the findings. (3) Notwithstanding any other provision of this section or any other provision of law, including subsection (u) of section 28 of the Mineral 30 u s e 185. Leasing Act of 1920, the President may export oil to any country
PUBLIC LAW 96-72—SEPT. 29, 1979 93 STAT. 519 pursuant to a bilateral international oil supply agreement entered into by the United States with such nation before June 25,1979, or to any country pursuant to the International Emergency Oil Sharing Plan of the International Energy Agency. (e) REFINED PETROLEUM PRODUCTS.—(1) No refined petroleum prod- uct may be exported except pursuant to an export license specifically authorizing such export. Not later than 5 days after an application Export license for a license to export any refined petroleum product or residual fuel applications, notification of oil is received, the Secretary shall notify the Congress of such congressional application, together with the name of the exporter, the destination committees. of the proposed export, and the amount and price of the proposed export. Such notification shall be made to the chairman of the Committee on Foreign Affairs of the House of Representatives and the chairman of the Committee on Banking, Housing, and Urban Affairs of the Senate. (2) The Secretary may not grant such license during the 30-day period beginning on the date on which notification to the Congress under paragraph (1) is received, unless the President certifies in writing to the Speaker of the House of Representatives and the President pro tempore of the Senate that the proposed export is vital to the national interest and that a delay in issuing the license would adversely affect that interest. (3) This subsection shall not apply to (A) any export license application for exports to a country with respect to which historical export quotas established by the Secretary on the basis of past trading relationships apply, or (B) any license application for exports to a country if exports under the license would not result in more than 250,000 barrels of refined petroleum products being exported from the United States to such country in any fiscal year. (4) For purposes of this subsection,"refined petroleum product" "Refined means gasoline, kerosene, distillates, propane or butane gas, diesel petroleum product." fuel, and residual fuel oil refined within the United States or entered for consumption within the United States. (5) The Secretary may extend any time period prescribed in section Time extension. 10 of this Act to the extent necessary to take into account delays in action by the Secretary on a license application on account of the provisions of this subsection. (f) CERTAIN PETROLEUM PRODUCTS.—Petroleum products refined in Regulations. United States Foreign Trade Zones, or in the United States Territory of Guam, from foreign crude oil shall be excluded from any quantita- tive restrictions imposed under this section except that, if the Secretary finds that a product is in short supply, the Secretary may issue such regulations as may be necessary to limit exports. (g) AGRICULTURAL COMMODITIES.—(1) The authority conferred by this section shall not be exercised with respect to any agricultural commodity, including fat^ and oils or animal hides or skins, without the approval of the Secretary of Agriculture. The Secretary of Agriculture shall not approve the exercise of such authority with respect to any such commodity during any period for which the supply of such commodity is determined by the Secretary of Agricul- ture to be in excess of the requirements of the domestic economy except to the extent the President determines that such exercise of authority is required to carry out the policies set forth in subpara- graph (A) or (B) of paragraph (2) of section 3 of this Act. The Secretary Export sales of of Agriculture shall, by exercising the authorities which the Secre- animal hides and tary of Agriculture has under other applicable provisions of law, skins, data. collect data with respect to export sales of animal hides and skins. (2) Upon approval of the Secretary, in consultation with the Secretary of Agriculture, agricultural commodities purchased by or
93 STAT. 520 PUBLIC LAW 96-72—SEPT. 29, 1979 for use in a foreign country may remain in the United States for export at a later date free from any quantitative limitations on export which may be imposed to carry out the policy set forth in section 3(2XC) of this Act subsequent to such approval. The Secretary may not grant such approval unless the Secretary receives adequate assurance and, in conjunction with the Secretary of Agriculture, finds (A) that such commodities will eventually be exported, (B) that neither the sale nor export thereof will result in an excessive drain of scarce materials and have a serious domestic inflationary impact, (C) that storage of such commodities in the United States will not unduly limit the space available for storage of domestically owned commod- ities, and (D) that the purpose of such storage is to establish a reserve of such commodities for later use, not including resale to or use by Regulations. another country. The Secretary may issue such regulations as may be necessary to implement this paragraph. (3) If the authority conferred by this section or section 6 is exercised to prohibit or curtail the export of any agricultural commodity in order to carry out the policies set forth in subparagraph (B) or (C) of paragraph (2) of section 3 of this Act, the President shall immediately report such prohibition or curtailment to the C!ongress, setting forth the reasons therefor in detail. If the Congress, within 30 days after the date of its receipt of such report, adopts a concurrent resolution disapproving such prohibition or curtailment, then such prohibition or curtailment shall cease to be effective with the adoption of such resolution. In the computation of such 30-day period, there shall be excluded the days on which either House is not in session because of an adjournment of more than 3 days to a day certain or because of an adjournment of the Congress sine die. (h) BARTER AGREEMENTS.—(1) The exportation pursuant to a barter agreement of any goods which may lawfully be exported from the United States, for any goods which may lawfully be imported into the United States, may be exempted, in accordance with paragraph (2) of this subsection, from any quantitative limitation on exports (other than any reporting requirement) imposed to carry out the policy set forth in section 3(2XC) of this Act. (2) The Secretary shall grant an exemption under paragraph (1) if the Secretary finds, after consultation with the appropriate depart- ment or agency of the United States, that— (A) for the period during which the barter agreement is to be performed— (i) the average annual quantity of the goods to be exported pursuant to the barter agreement will not be required to satisfy the average amount of such goods estimated to be required annually by the domestic economy and will be surplus thereto; and (ii) the average annual quantity of the goods to be im- ported will be less than the average amount of such goods estimated to be required annually to supplement domestic production; and (B) the parties to such barter agreement have demonstrated adequately that they intend, and have the capacity, to perform such barter agreement. "Barter (3) For purposes of this subsection, the term "barter agreement" agreement." means any £^eement which is made for the exchange, without monetary consideration, of any goods produced in the United States for any goods produced outside of the United States. (4) This subsection shall apply only with respect to barter agree- ments entered into after the effective date of this Act.
PUBLIC LAW 96-72—SEPT. 29, 1979 93 STAT. 521 (i) UNPROCESSED RED CEDAR.—(1) The Secretary shall require a validated license, under the authority contained in subsection (a) of this section, for the export of unprocessed western red cedar (Thuja plicata) logs, harvested from State or Federal lands. The Secretary shall impose quantitative restrictions upon the export of unprocessed western red cedar logs during the 3-year period beginning on the effective date of this Act as follows: (A) Not more than thirty million board feet scribner of such logs may be exported during the first year of such 3-year period. (B) Not more than fifteen million board feet scribner of such logs may be exported during the second year of such period. (C) Not more than five million board feet scribner of such logs may be exported during the third year of such period. After the end of such 3-year period, no unprocessed western red cedar Export logs may be exported from the United States. terminations. (2) The Secretary shall allocate export licenses to exporters pursu- Export licenses, ant to this subsection on the basis of a prior history of exportation by allocation. such exporters and such ether factors as the Secretary considers necessary and appropriate to minimize any hardship to the producers of western red cedar and to further the foreign policy of the United States. (3) Unprocessed western red cedar logs shall not be considered to be an agricultural commodity for purposes of subsection (g) of this section. (4) As used in this subsection, the term "unprocessed western red "Unprocessed cedar" means red cedar timber which has not been processed into— western red cedar." (A) lumber without wane; (B) chips, pulp, and pulp products; (C) veneer and plywood; (D) poles, posts, or pilings cut or treated with preservative for use as such and not intended to be further processed; or (E) shakes and shingles. (j) EXPORT OF HORSES.—(1) Notwithstanding any other provision of this Act, no horse may be exported by sea from the United States, or any of its territories and possessions, unless such horse is part of a consignment of horses with respect to which a waiver has been granted under paragraph (2) of this subsection. (2) The Secretary, in consultation with the Secretary of Agricul- Regulations. ture, may issue regulations providing for the granting of waivers permitting the export by sea of a specified consignment of horses, if the Secretary, in consultation with the Secretary of Agriculture, determines that no horse in that consignment is being exported for purposes of slaughter. FOREIGN BOYCOTTS SEC. 8. (a) PROHIBITIONS AND EXCEPTIONS.—(1) For the purpose of Regulations. implementing the policies set forth in subparagraph (A) or (B) of 50 u s e app. paragraph (5) of section 3 of this Act, the President shall issue 2407. regulations prohibiting any United States person, with respect to his activities in the interstate or foreign commerce of the United States, from taking or knowingly agreeing to take any of the following actions with intent to comply with, further, or support any boycott fostered or imposed by a foreign country against a country which is friendly to the United States and which is not itself the object of any form of boycott pursuant to United States law or regulation: (A) Refusing, or requiring any other person to refuse, to do business with or in the boycotted country, with any business concern organized under the laws of the boycotted country, with
93 STAT. 522 PUBLIC LAW 96-72—SEPT. 29, 1979 any national or resident of the boycotted country, or with any other person, pursuant to an agreement with, a requirement of, or a request from or on behalf of the boycotting country. The mere absence of a business relationship with or in the boycotted country with any business concern organized under the laws of the boycotted country, with any national or resident of the boycotted country, or with any other person, does not indicate the existence of the intent required to establish a violation of regulations issued to carry out this subparagraph. Employment (B) Refusing, or requiring any other person to refuse, to employ discrimination, prohibition. or otherwise discriminating against any United States person on the basis of race, religion, sex, or national origin of that person or of any owner, officer, director, or employee of such person. (C) Furnishing information with respect to the race, religion, sex, or national origin of any United States person or of any owner, officer, director, or employee of such person. Business (D) Furnishing information about whether any person has, has information. had, or proposes to have any business relationship (including a relationship by way of sale, purchase, legal or commercial representation, shipping or other transport, insurance, invest- ment, or supply) with or in the boycotted country, with any business concern organized under the laws of the boycotted country, with any national or resident of the boycotted country, or with any other person which is known or believed to be restricted from having any business relationship with or in the boycotting country. Nothing in this paragraph shall prohibit the furnishing of normal business information in a commercial context as defined by the Secretary. (E) Furnishing information about whether any person is a member of, has made contributions to, or is otherwise associated with or involved in the activities of any charitable or fraternal organization which supports the boycotted country. Letter of credit. (F) Paying, honoring, confirming, or otherwise implementing a letter of credit which contains any condition or requirement compliance with which is prohibited by regulations issued pursu- ant to this paragraph, and no United States person shall, as a result of the application of this paragraph, be obligated to pay or otherwise honor or implement such letter of credit. Regulatory (2) Regulations issued pursuant to paragraph (1) shall provide exceptions. exceptions for— (A) complying or agreeing to comply with requirements (i) prohibiting the import of goods or services from the boycotted country or goods produced or services provided by any business concern organized under the laws of the boycotted country or by nationals or residents of the boycotted country, or (ii) prohibiting the shipment of goods to the boycotting country on a carrier of the boycotted country, or by a route other than that prescribed by the boycotting country or the recipient of the shipment; (B) complying or agreeing to comply with import and shipping document requirements with respect to the country of origin, the name of the carrier and route of shipment, the name of the supplier of the shipment or the name of the provider of other services, except that no information knowingly furnished or conveyed in response to such requirements may be stated in negative, blacklisting, or similar exclusionary terms, other than with respect to carriers or route of shipment as may be permitted by such regulations in order to comply with precautionary requirements protecting against war risks and confiscation;
PUBLIC LAW 96-72—SEPT. 29, 1979 93 STAT. 523 (O compljdng or agreeing tx) comply in the normal course of business with the unilater^ and specific selection by a boycott- ing country, or national or resident thereof, of carriers, insurers, suppliers of services to be performed within the boycotting country or specific goods which, in the normal course of business, are identifiable by source when imported into the boycotting country; (D) complying or agreeing to comply with export requirements of the boycotting country relating to shipments or transship- ments of exports to the boycotted country, to any business concern of or organized under the laws of the boycotted country, or to any national or resident of the boycotted country; (E) compliance by an individual or agreement by an individual to comply with the immigration or passport requirements of any country with respect to such individual or any member of such individual's family or with requests for information regarding requirements of employment of such individusd within the boy- cotting country; and (F) compliance by a United States person resident in a foreign country or agreement by such person to comply with the laws of that country with respect to ms activities exclusively therein, and such regulations may contain exceptions for such resident complying with the laws or regulations of that foreign country governing imports into such country of trademarked, trade named, or similarly specifically identifiable products, or compo- nents of products for his own use, including the performance of contractual services within that country, as may be defined by such regulations. (3) Regulations issued pursuant to paragraphs (2XC) and (2)(F) shall not provide exceptions from paragraphs (IXB) and (1)(C). (4) Nothing in this subsection may be construed to supersede or limit the operation of the antitrust or civil rights laws of the United States. (5) This section shall apply to any transaction or activity under- taken, by or through a United States person or any other person, with intent to evade the provisions of this section as implemented by the regulations issued pursuant to this subsection, and such regulations shall expressly provide that the exceptions set forth in paragraph (2) shall not permit activities or agreements (expressed or implied by a course of conduct, including a pattern of responses) otherwise prohib- ited, which are not within the intent of such exceptions. (b) FOREIGN POUCY CONTROLS.—(1) In addition to the regulations issued pursuant to subsection (a) of this section, regulations issued under section 6 of this Act shall implement the policies set forth in section 3(5). (2) Such regulations shall require that any United States person Reports receiving a request for the furnishing of information, the entering into or implementing of agreements, or the taking of any other action referred to in section 3(5) shall report that fact to the Secretary, together with such other information concerning such request as the Secretary may require for such action as the Secretary considers appropriate for carrying out the policies of that section. Such person shall also report to the Secretary whether such person intends to comply and whether such person has complied with such request. Any report filed pursuant to this paragraph shall be made available Public inspection and promptly for public inspection and copying, except that information copying. regarding the quantity, description, and value of any goods or technology to which such report relates may be kept confidential if the Secretary determines that disclosure thereof would place the
93 STAT. 524 PUBLIC LAW 96-72—SEPT. 29, 1979 Transmittal to United States person involved at a competitive disadvantage. The Stete*^*^^ °^ Secretary shall periodically transmit summaries of the information contained in such reports to the Secretary of State for such action as the Secretary of State, in consultation with the Secretary, considers appropriate for carrying out the policies set forth in section 3(5) of this Act. (c) PREEMPTION.—The provisions of this section and the regulations issued pursuant thereto shall preempt any law, rule, or regulation of any of the several States or the District of Columbia, or any of the territories or possessions of the United States, or of any governmen- tal subdivision thereof, which law, rule, or regulation pertains to participation in, compliance with, implementation of, or the furnish- ing of information regarding restrictive trade practices or boycotts fostered or imposed by foreign countries against other countries. PROCEDURES FOR HARDSHIP RELIEF FROM EXPORT CONTROLS 50 use app. SEC. 9. (a) F I U N G OF PETITIONS.—Any person who, in such person's 2^^^- domestic manufacturing process or other domestic business oper- ation, utilizes a product produced abroad in whole or in part from a good historically obtained from the United States but which has been made subject to export controls, or any person who historically has exported such a good, may transmit a petition of hardship to the Secretary requesting an exemption from such controls in order to alleviate any unique hardship resulting from the imposition of such controls. A petition under this section shall be in such form as the Secretary shall prescribe and shall contain information demonstrat- ing the need for the relief requested. (b) DECISION OF THE SECRETARY.—Not later than 30 days after receipt of any petition under subsection (a), the Secretary shall transmit a written decision to the petitioner granting or denying the requested relief. Such decision shall contain a statement setting forth the Secretary's basis for the grant or denial. Any exemption granted may be subject to such conditions as the Secretary considers appro- priate. (c) FACTORS TO B E CONSIDERED.—For purposes of this section, the Secretary's decision with respect to the grant or denial of relief from unique hardship resulting directly or indirectly from the imposition of export controls shall reflect the Secretary's consideration of factors such as the following: (1) Whether denial would cause a unique hardship to the petitioner which can be alleviated only by granting an exception to the applicable regulations. In determining whether relief shall be granted, the Secretary shall take into account— (A) ownership of material for which there is no practicable domestic market by virtue of the location or nature of the material; (B) potential serious financial loss to the applicant if not granted an exception; (C) inability to obtain, except through import, an item essential for domestic use which is produced abroad from the good under control; (D) the extent to which denial would conflict, to the particular detriment of the applicant, with other national policies including those reflected in any international agree- ment to which the United States is a party; (E) possible adverse effects on the economy (including unemployment) in any locality or region of the United States; and
PUBLIC LAW 96-72—SEPT. 29, 1979 93 STAT. 525 (F) other relevant factors, including the applicant's lack of an exporting history during any base period that may be established with respect to export quotas for the particular good. (2) The effect a finding in favor of the applicant would have on attainment of the basic objectives of the short supply control program. In all cases, the desire to sell at higher prices and thereby obtain greater profits shall not be considered as evidence of a unique hardship, nor will circumstances where the hardship is due to imprudent acts or failure to act on the part of the petitioner. PROCEDURES FOR PROCESSING EXPORT UCENSE APPLICATIONS SEC. 10. (a) PRIMARY RESPONSIBILITY OF THE SECRETARY.—(1) All 50 use app. export license applications required under this Act shall be submitted ^^^^• by the applicant to the Secretary. All determinations with respect to any such application shall be made by the Secretary, subject to the procedures provided in this section. (2) It is the intent of the Congress that a determination with respect to any export license application be made to the maximum extent possible by the Secretary without referral of such application to any other department or agency of the Government. (3) To the extent necessary, the Secretary shall seek information and recommendations from the Government departments and agen- cies concerned with aspects of United States domestic and foreign policies and operations having an important bearing on exports. Such departments and agencies shall cooperate fully in rendering such information and recommendations. (b) INITIAL SCREENING.—Within 10 days after the date on which any export license application is submitted pursuant to subsection (a)(1), the Secretary shall— (1) send the applicant an acknowledgment of the receipt of the application and the date of the receipt; (2) submit to the applicant a written description of the proce- dures required by this section, the responsibilities of the Secre- tary and of other departments and agencies with respect to the application, and the rights of the applicant; (3) return the application without action if the application is improperly completed or if additional information is required, with sufficient information to permit the application to be properly resubmitted, in which case if such application is resub- mitted, it shall be treated as a new application for the purpose of calculating the time periods prescribed in this section; (4) determine whether it is necessary to refer the application to any other department or agency and, if such referral is deter- mined to be necessary, inform the applicant of any such depart- ment or agency to which the application will be referred; and (5) determine whether it is necessary to submit the application to a multilateral review process, pursuant to a multilateral agreement, formal or informal, to which the United States is a party and, if so, inform the applicant of this requirement. (c) ACTION ON CERTAIN APPUCATIONS.—In each case in which the Secretary determines that it is not necessary to refer an application to any other department or agency for its information and recommen- dations, a license shall be formally issued or denied within 90 days after a properly completed application has been submitted pursuant to this section.
93 STAT. 526 PUBLIC LAW 96-72—SEPT. 29, 1979 (d) REFERRAL TO OTHER DEPARTMENTS AND AGENCIES.—In each case in which the Secretary determines that it is necessary to refer an application to any other department or agency for its information and recommendations, the Secretary shall, within 30 days after the submission of a properly completed application— (1) refer the application, together with all necessary analysis and recommendations of the Department of Commerce, concur- rently to all such departments or agencies; and (2) if the applicant so requests, provide the applicant with an opportunity to review for accuracy any documentation to be referred to any such department or agency with respect to such application for the purpose of describing the export in question in order to determine whether such documentation accurately describes the proposed export. (e) ACTION BY OTHER DEPARTMENTS AND AGENCIES.—(1) Any depart- ment or agency to which an application is referred pursuant to subsection (d) shall submit to the Secretary, within 30 days after its receipt of the application, the information or recommendations requested with respect to such application. Except as provided in paragraph (2), any such department or agency which does not submit its recommendations within the time period prescribed in the preced- ing sentence shall be deemed by the Secretary to have no objection to the approval of such application. Recommendations, (2) If the head of any such department or agency notifies the time extension. Secretary before the expiration of the time period provided in paragraph (1) for submission of its recommendations that more time is required for review by such department or agency, such depart- ment or agency shall have an additional 30-day period to submit its recommendations to the Secretary. If such department or agency does not submit its recommendations within the time period pre- scribed by the preceding sentence, it shall be deemed by the Secretary to have no objection to the approval of such application. (f) ACTION BY THE SECRETARY.—(1) Within 90 days after receipt of the recommendations of other departments and agencies with respect to a license application, as provided in subsection (e), the Secretary shall formally issue or deny the license. In deciding whether to issue or deny a license, the Secretary shall take into account any recom- mendation of a department or agency with respect to the application Conflicting in question. In cases where the Secretary receives conflicting recom- recommendations. mendations, the Secretary shall, within the 90-day period provided for in this subsection, take such action as may be necessary to resolve such conflicting recommendations. Applicant (2) In cases where the Secretary receives questions or negative notification and considerations or recommendations from any other department or w^rtten"^^^ agency with respect to an application, the Secretary shall, to the response. maximum extent consistent with the national security and foreign policy of the United States, inform the applicant of the specific questions raised and any such negative considerations or recommen- dations, and shall accord the applicant an opportunity, before the final determination with respect to the application is made, to respond in writing to such questions, considerations, or recommenda- tions. Applicant denial (3) In cases where the Secretary has determined that an application procedures. should be denied, the applicant shall be informed in writing, within 5 days after such determination is made, of the determination, of the statutory basis for denial, the policies set forth in section 3 of the Act which would be furthered by denial, and, to the extent consistent with the national security and foreign policy of the United States, the specific considerations which led to the denial, and of the availability
PUBLIC LAW 96-72—SEPT. 29, 1979 93 STAT. 527 of appeal procedures. In the event decisions on license applications are deferred inconsistent with the provisions of this section, the applicant shall be so informed in writing within 5 days after such deferral. (4) If the Secretary determines that a particular application or set Time extension, of applications is of exceptional importance and complexity, and that notiRcation to Congress and additional time is required for negotiations to modify the application applicant. or applications, the Secretary may extend any time period prescribed in this section. The Secretary shall notify the Congress and the applicant of such extension and the reasons therefor. (g) SPECIAL PROCEDURES FOR SECRETARY OF DEFENSE.—(1) Notwith- Review. standing any other provision of this section, the Secretary of Defense is authorized to review any proposed export of any goods or technol- ogy to any country to which exports are controlled for national security purposes and, whenever the Secretary of Defense determines that the export of such goods or technology will make a significant contribution, which would prove detrimental to the national security of the United States, to the military potential of any such country, to recommend to the President that such export be disapproved. (2) Notwithstanding any other provision of law, the Secretary of Export Defense shall determine, in consultation with the Secretary, and transactions, review. confirm in writing the types and categories of transactions which should be reviewed by the Secretary of Defense in order to make a determination referred to in paragraph (1). Whenever a license or other authority is requested for the export to any country to which exports are controlled for national security purposes of goods or technology within any such type or category, the Secretary shall notify the Secretary of Defense of such request, and the Secretary may not issue any license or other authority pursuant to such request before the expiration of the period within which the President may disapprove such export. The Secretary of Defense shall carefully consider any notification submitted by the Secretary pursuant to this paragraph and, not later than 30 days after notification of the request, shall— (A) recommend to the President that he disapprove any re- quest for the export of the goods or technology involved to the particular country if the Secretary of Defense determines that the export of such goods or technology will make a significant contribution, which would prove detrimental to the national security of the United States, to the military potential of such country or any other country; (B) notify the Secretary that he would recommend approval subject to specified conditions; or (C) recommend to the Secretary that the export of goods or technology be approved. If the President notifies the Secretary, within 30 days after receiving a recommendation from the Secretary of Defense, that he disap- proves such export, no license or other authority may be issued for the export of such goods or technology to such country. (3) The Secretary shall approve or disapprove a license application, and issue or deny a license, in accordance with the provisions of this subsection, and, to the extent applicable, in accordance with the time periods and procedures otherwise set forth in this section. (4) Whenever the President exercises his authority under this Presidential subsection to modify or overrule a recommendation made by the statement, Secretary of Defense or exercises his authority to modify or overrule transmitt«il to Congress. any recommendation made by the Secretary of Defense under subsec- tion (c) or (d) of section 5 of this Act with respect to the list of goods and technologies controlled for national security purposes, the Presi-
93 STAT. 528 PUBLIC LAW 96-72—SEPT. 29, 1979 dent shall promptly transmit to the Congress a statement indicating his decision, together with the recommendation of the Secretary of Defense. Multilateral (h) MULTILATERAL CONTROLS.—In any case in which an application, review process. which has been finally approved under subsection (c), (f), or (g) of this section, is required to be submitted to a multilateral review process, pursuant to a multilateral agreement, formal or informal, to which the United States is a party, the license shall not be issued as prescribed in such subsections, but the Secretary shall notify the applicant of the approval of the application (and the date of such approval) by the Secretary subject to such multilateral review. The license shall be issued upon approval of the application under such multilateral review. If such multilateral review has not resulted in a determination with respect to the application within 60 days after such date, the Secretary's approval of the license shall be final and the license shall be issued, unless the Secretary determines that issuance of the license would prove detrimental to the national Notification to security of the United States. At the time at which the Secretary Congress and makes such a determination, the Secretary shall notify the applicant appliceint. of the determination and shall notify the Congress of the determina- tion, the reasons for the determination, the reasons for which the multilateral review could not be concluded within such 60-day period, and the actions planned or being taken by the United States Govern- Applicant status, ment to secure conclusion of the multilateral review. At the end of report to every 60-day period after such notification to Congress, the Secretary Congress. shall advise the applicant and the Congress of the status of the application, and shall report to the Congress in detail on the reasons for the further delay and any further actions being taken by the United States Government to secure conclusion of the multilateral review. In addition, at the time at which the Secretary issues or denies the license upon conclusion of the multilateral review, the Secretary shall notify the Congress of such issuance or denial and of the total time required for the multilateral review. (i) RECORDS.—The Secretary and any department or agency to which any application is referred under this section shall keep accurate records with respect to all applications considered by the Secretary or by any such department or agency, including, in the case of the Secretary, any dissenting recommendations received from any such department or agency. (j) APPEAL AND COURT ACTION.—(1) The Secretary shall establish appropriate procedures for any applicant to appeal to the Secretary the denial of an export license application of the applicant. Filing of petition (2) In any case in which any action prescribed in this section is not by applicant. taken on a license application within the time periods established by this section (except in the case of a time period extended under subsection (f)(4) of which the applicant is notified), the applicant may file a petition with the Secretary requesting compliance with the requirements of this section. When such petition is filed, the Secre- tary shall take immediate steps to correct the situation giving rise to the petition and shall immediately notify the applicant of such steps. (3) If, within 30 days after a petition is filed under paragraph (2), the processing of the application has not been brought into conform- ity with the requirements of this section, or the application has been brought into conformity with such requirements but the Secretary has not so notified the applicant, the applicant may bring an action in an appropriate United States district court for a restraining order, a temporary or permanent injunction, or other appropriate relief, to require compliance with the requirements of this section. The United
PUBLIC LAW 96-72—SEPT. 29, 1979 93 STAT. 529 States district courts shall have jurisdiction to provide such relief, as appropriate. VIOLATIONS SEC. 11. (a) I N GENERAL.—Except as provided in subsection (b) of 50 u s e app. this section, whoever knowingly violates any provision of this Act or 2410. any regulation, order, or license issued thereunder shall be fined not more than five times the value of the exports involved or $50,000, whichever is greater, or imprisoned not more than 5 years, or both. (b) WILLFUL VIOLATIONS.—(1) Whoever willfully exports anything contrary to any provision of this Act or any regulation, order, or license issued thereunder, with knowledge that such exports will be used for the benefit of any country to which exports are restricted for national security or foreign policy purposes, shall be fined not more than five times the value of the exports involved or $100,000, whichever is greater, or imprisoned not more than 10 years, or both. (2) Any person who is issued a validated license under this Act for the export of any good or technology to a controlled country and who, with knowledge that such a good or technology is being used by such controlled country for military or intelligence gathering purposes contrary to the conditions under which the license was issued, willfully fails to report such use to the Secretary of Defense, shall be fined not more than five times the value of the exports involved or $100,000, whichever is greater, or imprisoned for not more than 5 years, or both. For purposes of this paragraph, "controlled country" "C!ontrolled means any country described in section 620(f) of the Foreign Assist- country." ance Act of 1961. 22 u s e 2370. (c) CIVIL PENALTIES; ADMINISTRATIVE SANCTIONS.—(1) The head of any department or agency exercising any functions under this Act, or any officer or employee of such department or agency specifically designated by the head thereof, may impose a civil penalty not to exceed $10,000 for each violation of this Act or any regulation, order, or license issued under this Act, either in addition to or in lieu of any other liability or penalty which may be imposed. (2)(A) The authority under this Act to suspend or revoke the authority of any United States person to export goods or technology may be used with respect to any violation of the regulations issued pursuant to section 8(a) of this Act. (B) Any administrative sanction (including any civil penalty or any suspension or revocation of authority to export) imposed under this Act for a violation of the regulations issued pursuant to section 8(a) of this Act may be imposed only after notice and opportunity for an agency hearing on the record in accordance with sections 554 through 557 of title 5, United States Code. (C) Any charging letter or other document initiating administra- tive proceedings for the imposition of sanctions for violations of the regulations issued pursuant to section 8(a) of this Act shall be made available for public inspection and copying. (d) PAYMENT OF PENALTIES.—The payment of any penalty imposed pursuant to subsection (c) may be made a condition, for a period not exceeding one year after the imposition of such penalty, to the granting, restoration, or continuing validity of any export license, permission, or privilege granted or to be granted to the person upon whom such penalty is imposed. In addition, the payment of any Deferral or penalty imposed under subsection (c) may be deferred or suspended in suspension. whole or in part for a period of time no longer than any probation period (which may exceed one year) that may be imposed upon such person. Such a deferral or suspension shall not operate as a bar to the SI 5C . n i o
93 STAT. 530 PUBLIC LAW 96-72—SEPT. 29, 1979 collection of the penalty in the event that the conditions of the suspension, deferral, or probation are not fulfilled. (e) REFUNDS.—Any amount paid in satisfaction of any penalty imposed pursuant to subsection (c) shall be covered into the Treasury as a miscellaneous receipt. The head of the department or agency concerned may, in his discretion, refund any such penalty, within 2 years after payment, on the ground of a material error of fact or law in the imposition of the penalty. Notwithstanding section 1346(a) of title 28, United States Code, no action for the refund of any such penalty may be maintained in any court. (f) ACTIONS FOR RECOVERY OF PENALTIES.—In the event of the failure of any person to pay a penalty imposed pursuant to subsection (c), a civil action for the recovery thereof may, in the discretion of the head of the department or agency concerned, be brought in the name of the United States. In any such action, the court shall determine de novo all issues necessary to the establishment of liability. Except as provided in this subsection and in subsection (d), no such liability shall be asserted, claimed, or recovered upon by the United States in any way unless it has previously been reduced to judgment. (g) OTHER AUTHORITIES.—Nothing in subsection (c), (d), or (f) limits— (1) the availability of other administrative or judicial remedies with respect to violations of this Act, or any regulation, order, or license issued under this Act; (2) the authority to compromise and settle administrative proceedings brought with respect to violations of this Act, or any regulation, order, or license issued under this Act; or (3) the authority to compromise, remit or mitigate seizures and forfeitures pursuant to section 1(b) of title VI of the Act of June 15,1917 (22 U.S.C. 401(b)). ENFORCEMENT SOUSCapp. SEC. 12. (a) GENERAL AUTHORITY.—To the extent necessary or ^^^- appropriate to the enforcement of this Act or to the imposition of any penalty, forfeiture, or liability arising under the Export Control Act SOUSCapp.2021 of 1949 or the Export Administration Act of 1969, the head of any note, 2401 note, department or agency exercising any function thereunder (and offi- cers or employees of such department or agency specifically desig- nated by the head thereof) may make such investigations and obtain such information from, require such reports or the keeping of such records by, make such inspection of the books, records, and other writings, premises, or property of, £ind take the sworn testimony of, any person. In addition, such officers or employees may administer oaths or affirmations, and may by subpena require any person to appear and testify or to appear and produce books, records, and other writings, or both, and in the case of contumacy by, or refusal to obey a subpena issued to, any such person, the district court of the United States for any district in which such person is found or resides or transacts business, upon application, and after notice to any such person and hearing, shall have jurisdiction to issue an order requir- ing such person to appear and give testimony or to appear and produce books, records, and other writings, or both, and any failure to obey such order of the court may be punished by such court as a contempt thereof. (b) IMMUNITY.—No person shall be excused from complying with any requirements under this section because of his privilege against self-incrimination, but the immunity provisions of section 6002 of
PUBLIC LAW 96-72—SEPT. 29, 1979 93 STAT. 531 title 18, United States Code, shall apply with respect to any indi- vidual who specifically claims such privilege. (c) CONFIDENTIALITY.—(1) Except as otherwise provided by the third sentence of section 8(b)(2) and by section 11(c)(2)(C) of this Act, information obtained under this Act on or before June 30,1980, which is deemed confidential, including Shippers' Export Declarations, or with reference to which a request for confidential treatment is made by the person furnishing such information, shall be exempt from disclosure under section 552 of title 5, United States Code, and such information shall not be published or disclosed unless the Secretary determines that the withholding thereof is contrary to the national interest. Information obtained under this Act after June 30, 1980, Information may be withheld only to the extent permitted by statute, except that disclosure. information obtained for the purpose of consideration of, or concern- ing, license applications under this Act shall be withheld from public disclosure unless the release of such information is determined by the Secretary to be in the national interest. Enactment of this subsection Access to boycott shall not affect any judicial proceeding commenced under section 552 reports. of title 5, United States Code, to obtain access to boycott reports submitted prior to October 31, 1976, which was pending on May 15, 1979; but such proceeding shall be continued as if this Act had not been enacted. (2) Nothing in this Act shall be construed as authorizing the Information, withholding of information from the Congress, and all information availability to obtained at any time under this Act or previous Acts regarding the Congress. control of exports, including any report or license application re- quired under this Act, shall be made available upon request to any committee or subcommittee of Congress of appropriate jurisdiction. No such committee or subcommittee shall disclose any information obtained under this Act or previous Acts regarding the control of exports which is submitted on a confidential basis unless the full committee determines that the withholding thereof is contrary to the national interest. (d) REPORTING REQUIREMENTS.—In the administration of this Act, reporting requirements shall be so designed as to reduce the cost of reporting, recordkeeping, and export documentation required under this Act to the extent feasible consistent with effective enforcement and compilation of useful trade statistics. Reporting, recordkeeping, and export documentation requirements shall be periodically re- viewed and revised in the light of developments in the field of information technology. (e) SiMPUFiCATiON OF REGULATIONS.—The Secretary, in consulta- Review of tion with appropriate United States Government departments and regulations. agencies and with appropriate technical advisory committees estab- lished under section 5(h), shall review the regulations issued under this Act and the commodity control list in order to determine how compliance with the provisions of this Act can be facilitated by simplifying such regulations, by simplifying or clarifying such list, or by any other means. EXEMPTION FROM CERTAIN PROVISIONS RELATING TO ADMINISTRATIVE PROCEDURE AND JUDICIAL REVIEW SEC. 13. (a) EXEMPTION.—Except as provided in section 11(c)(2), the 50 u s e app. functions exercised under this Act are excluded from the operation of 2412. sections 551, 553 through 559, and 701 through 706 of title 5, United States Code. (b) PuBuc PARTICIPATION.—It is the intent of the Congress that, to the extent practicable, all regulations imposing controls on exports
93 STAT. 532 PUBLIC LAW 96-72—SEPT. 29, 1979 under this Act be issued in proposed form with meaningful opportu- nity for pubHc comment before taking effect. In cases where a regulation imposing controls under this Act is issued with immediate effect, it is the intent of the Congress that meaningful opportunity for public comment also be provided and that the regulation be reissued in final form after public comments have been fully considered. ANNUAL REPORT Report to SEC. 14. (a) CONTENTS.—Not later than December 31 of each year, 50 l ^ ^ p p *^® Secretary shall submit to the Congress a report on the adminis- 2413. tration of this Act during the preceding fiscal year. All agencies shall cooperate fully with the Secretary in providing information for such report. Such report shall include detailed information with respect to— (1) the implementation of the policies set forth in section 3; (2) general licensing activities under sections 5, 6, and 7, and any changes in the exercise of the authorities contained in sections 5(a), 6(a), and 7(a); (3) the results of the review of United States policy toward individual countries pursuant to section 5(b); (4) the results, in as much detail as may be included consistent with the national security and the need to maintain the confiden- tiality of proprietary information, of the actions, including re- views and revisions of export controls maintained for national security purposes, required by section 5(c)(3); (5) actions taken to carry out section 5(d); (6) changes in categories of items under export control referred to in section 5(e); (7) determinations of foreign availability made under section 5(f), the criteria used to make such determinations, the removal of any export controls under such section, and any evidence demonstrating a need to impose export controls for national security purposes notwithstanding foreign availability; (8) actions taken in compliance with section 5(f)(5); (9) the operation of the indexing system under section 5(g); (10) consultations with the technical advisory committees established pursuant to section 5(h), the use made of the advice rendered by such committees, and the contributions of such committees toward implementing the policies set forth in this Act; (11) the effectiveness of export controls imposed under section 6 in furthering the foreign policy of the United States; (12) export controls and monitoring under section 7; (13) the information contained in the reports required by section 7(b)(2), together with an analysis of— (A) the impact on the economy and world trade of short- ages or increased prices for commodities subject to monitor- ing under this Act or section 812 of the Agricultural Act of 7 use 612C-3. 1970; (B) the worldwide supply of such commodities; and (C) actions being taken by other countries in response to such shortages or increased prices; (14) actions taken by the President and the Secretary to carry out the antiboycott policies set forth in section 3(5) of this Act; (15) organizational and procedural changes undertaken in furtherance of the policies set forth in this Act, including changes to increase the efficiency of the export licensing process and to fulfill the requirements of section 10, including an
PUBLIC LAW 96-72—SEPT. 29, 1979 93 STAT. 533 analysis of the time required to process license applications, the number and disposition of export license applications taking more than 90 days to process, and an accounting of appeals received, court orders issued, and actions taken pursuant thereto under subsection (j) of such section; (16) delegations of authority by the President as provided in section 4(e) of this Act; (17) efforts to keep the business sector of the Nation informed with respect to policies and procedures adopted under this Act; (18) any reviews undertaken in furtherance of the policies of this Act, including the results of the review required by section 12(d), and any action taken, on the basis of the review required by section 12(e), to simplify regulations issued under this Act; (19) violations under section 11 and enforcement activities under section 12; and (20) the issuance of regulations under the authority of this Act, including an explanation of each case in which regulations were not issued in accordance with the first sentence of section 13(b). (b) REPORT ON CERTAIN EXPORT CONTROLS.—To the extent that the President determines that the policies set forth in section 3 of this Act require the control of the export of goods and technology other than those subject to multilateral controls, or require more stringent controls than the multilateral controls, the President shall include in each annual report the reasons for the need to impose, or to continue to impose, such controls and the estimated domestic economic impact on the various industries affected by such controls. (c) REPORT ON NEGOTIATIONS.—The President shall include in each annual report a detailed report on the progress of the negotiations required by section 5(i), until such negotiations are concluded. REGULATORY AUTHORITY SEC. 15. The President and the Secretary may issue such regula- Regulations, tions as are necessary to carry out the provisions of this Act. Any ^^^ ^^^' such regulations issued to carry out the provisions of section 5(a), 6(a), 7(a), or 8(b) may apply to the financing, transporting, or other servicing of exports and the participation therein by any person. DEFINITIONS SEC. 16. As used in this Act— 50 use app. (1) the term "person" includes the singular and the plural and ^'*^^- any individual, partnership, corporation, or other form of associ- ation, including any government or agency thereof; (2) the term "United States person" means any United States resident or national (other than an individual resident outside the United States and employed by other than a United States person), any domestic concern (including any permanent domes- tic establishment of any foreign concern) and any foreign subsidi- ary or affiliate (including any permanent foreign establishment) of any domestic concern which is controlled in fact by such domestic concern, as determined under regulations of the Presi- dent; (3) the term "good" means any article, material, supply or manufactured product, including inspection and test equipment, and excluding technical data; (4) the term "technology" means the information and know- how that can be used to design, produce, manufacture, utilize, or
93 STAT. 534 PUBLIC LAW 96-72—SEPT. 29, 1979 reconstruct goods, including computer software and technical data, but not the goods themselves; and (5) the term "Secretary" means the Secretary of Commerce. EFFECT ON OTHER ACTS 50 use app. SEC. 17. (a) I N GENERAL.—Nothing contained in this Act shall be 2^^^- construed to modify, repeal, supersede, or otherwise affect the provi- sions of any other laws authorizing control over exports of any commodity. (b) COORDINATION OF CONTROLS.—The authority granted to the President under this Act shall be exercised in such manner as to achieve effective coordination with the authority exercised under section 38 of the Arms Export Control Act (22 U.S.C. 2778). (c) CIVIL AIRCRAFT EQUIPMENT.—Notwithstanding any other provi- sion of law, any product (1) which is standard equipment, certified by the Federal Aviation Administration, in civil aircraft and is an integral part of such aircraft, and (2) which is to be exported to a country other than a controlled country, shall be subject to export controls exclusively under this Act. Any such product shall not be subject to controls under section 38(bX2) of the Arms Export Control Act. For purposes of this subsection, the term "controlled country" means any country described in section 620(f) of the Foreign Assist- 22 use 2370. ance Act of 1961. (d) NONPROUFERATION CONTROLS.—(1) Nothing in section 5 or 6 of this Act shall be construed to supersede the procedures published by the President pursuant to section 309(c) of the Nuclear Non-Prolifera- tionActofl978. (2) With respect to any export license application which, under the procedures published by the President pursuant to section 309(c) of 92 Stat. 141. the Nuclear Non-Proliferation Act of 1978, is referred to the Sub- 42 use 2139. group on Nuclear Export Coordination or other interagency group, the provisions of section 10 of this Act shall apply with respect to such license application only to the extent that they are consistent with such published procedures, except that if the processing of any such application under such procedures is not completed within 180 days after the receipt of the application by the Secretary, the applicant shall have the rights of appeal and court action provided in section 100") of this Act. (e) TERMINATION OF OTHER AUTHORITY.—On October 1, 1979, the Mutual Defense Assistance Control Act of 1951 (22 U.S.C. 1611-1613d), is superseded. AUTHORIZATION OF APPROPRIATIONS 50 use app. SEC. 18. (a) REQUIREMENT OF AUTHORIZING LEGISLATION.—Notwith- ^^^^ standing any other provision of law, no appropriation shall be made under any law to the Department of Commerce for expenses to carry out the purposes of this Act unless previously and specifically authorized by law. (b) AUTHORIZATION.—There are authorized to be appropriated to the Department of Commerce to carry out the purposes of this Act— (1) $8,000,000 for each of the fiscal years 1980 and 1981, of which $1,250,000 shall be available for each such fiscal year only for purposes of carrying out foreign availability assessments pursuant to section 5(f)(5), and (2) such additional amounts, for each such fiscal year, as may be necessary for increases in salary, pay, retirement, other
PUBLIC LAW 96-72—SEPT. 29, 1979 93 STAT. 535 employee benefits authorized by law, and other nondiscretionary costs. EFFECTIVE DATE SEC. 19. (a) EFFECTIVE DATE.—This Act shall take effect upon the |J ^sc app. expiration of the Export Administration Act of 1969. 50 USC 240i (b) ISSUANCE OF REGULATIONS.—(1) Regulations implementing the note. ^^^ provisions of section 10 of this Act shall be issued and take effect not 50 USC app 2409 later than July 1,1980. note. (2) Regulations implementing the provisions of section 7(c) of this 50 USC app. 2406 Act shall be issued and take effect not later than January 1, 1980. "°**- TERMINATION DATE SEC. 20. The authority granted by this Act terminates on Septem- 50 USC app. ber 30,1983, or upon any prior date which the President by proclama- tion may designate. SAVINGS PROVISIONS SEC. 21. (a) IN GENERAL.—All delegations, rules, regulations, ^9„y^^PP- orders, determinations, licenses, or other forms of administrative action which have been made, issued, conducted, or allowed to become effective under the Export Control Act of 1949 or the Export 50 USC app. 2021 Administration Act of 1969 and which are in effect at the time this " ° ^ ' Act takes effect shall continue in effect according to their terms until modified, superseded, set aside, or revoked under this Act. (b) ADMINISTRATIVE PROCEEDINGS.—This Act shall not apply to any administrative proceedings commenced or any application for a license made, under the Export Administration Act of 1969, which is pending at the time this Act takes effect. TECHNICAL AMENDMENTS SEC. 22. (a) Section 38(e) of the Arms Export Control Act (22 U.S.C. 2778(e)) is amended by striking out "sections 6(c), (d), (e), and (f) and 7(a) and (c) of the Export Administration Act of 1969" and inserting in lieu thereof "subsections (c), (d), (e), and (f) of section 11 of the Export Administration Act of 1979, and by subsections (a) and (c) of section 12 of such Act". (b)(1) Section 103(c) of the Energy Policy and Conservation Act (42 U.S.C. 6212(c)) is amended— (A) by striking out "1969" and inserting in lieu thereof "1979"; and (B) by striking out "(A)" and inserting in lieu thereof "(C)". (2) Section 254(eX3) of such Act (42 U.S.C. 6274(e)(3)) is amended by striking out "section 7 of the Export Administration Act of 1969" and inserting in lieu thereof "section 12 of the Export Administration Act of 1979". (c) Section 993(c)(2)(D) of the Internal Revenue Code of 1954 (26 U.S.C. 993(c)(2)(D)) is amended— (1) by striking out "4(b) of the Export Administration Act of 1969 (50 U.S.C. App. 2403(b))" and inserting in lieu thereof "7(a) of the Export Administration Act of 1979"; and (2) by striking out "(A)" and inserting in lieu thereof "(C)".
93 STAT. 536 PUBLIC LAW 96-72—SEPT. 29, 1979 INTERNATIONAL INVESTMENT SURVEY ACT AUTHORIZATIONS SEC. 23. (a) Section 9 of the International Investment Survey Act of 1976 (22 U.S.C. 3108) is amended to read as follows: "AUTHORIZATIONS "SEC. 9. To carry out this Act, there are authorized to be appropri- ated $4,400,000 for the fiscal year ending September 30, 1980, and $4,500,000 for the fiscal year ending September 30,1981.". Effective date. (b) The amendment made by subsection (a) shall take effect on 22 use 3108 October 1,1979. note. MISCELLANEOUS SEC. 24. Section 402 of the Agricultural Trade Development and 7 use 1732. Assistance Act of 1954 is amended by inserting "or beer" in the second sentence immediately after "wine". Approved September 29, 1979. LEGISLATIVE HISTORY: HOUSE REPORTS: No. 96-200 accompanying H.R. 4034 (eomm. on Foreign Affairs) and No. 96-482 (Comm. of Conference). SENATE REPORT No. 96-169 (Comm. on Banking, Housing, and Urban Affairs). CONGRESSIONAL RECORD, Vol. 125 (1979): July 18, 20, 21, considered and passed Senate. May 31, July 23, Sept. 11, 18, 21, 25, H.R. 4034 considered and passed House; passage vacated and S. 737, amended, passed in lieu. Sept. 27, Senate agreed to conference report. Sept 28, House agreed to conference report.