,i  #aae? ,,congress  #b;d ,session  ,h4
 ,r4 #ehda  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,may #af1 #bjah,mr4   
,pitt5g] introduc$ ! foll[+ bill2 :i* 0 
ref]r$ to ! ,committee on ,=eign        
,affairs1 & 9 addition to ! ,committees 
on ,f9ancial ,s]vices1 ,en]gy &         
,comm]ce1 ,intellig5ce 7,p]man5t        
,select71 & ,ov]sight & ,gov]nm5t ,re=m1
 = a p]iod to be subsequ5tly det]m9$ by 
! ,speak]1 9 ea* case = consid]ation (  
su* provisions z fall )9 ! jurisdiction 
( ! committee conc]n$  ,a ,,bill  ,to   
mod]nize & /r5g!n ! ,committee on ,=eign
 ,inve/m5t 9 ! ,unit$ ,/ates to m       
effectively gu>d aga9/ ! risk to !      
national security ( ! ,unit$ ,/ates pos$
 by c]ta9 types ( =eign inve/m5t1 & =   
o!r purposes4  #a4 ,%ort title2 table ( 
cont5ts  7a7 ,%ort title ,?is ,act may  
be cit$ z ! ,=eign ,inve/m5t ,risk      
,review ,mod]nization ,act ( #bjah4  7b7
 ,table ( cont5ts ,! table ( cont5ts =  
?is ,act is z foll[s3  ,sec4 #a4 ,%ort  
title2 table ( cont5ts4 ,title          

,i--,f9d+s & ,s5se ( ,congress ,sec4    
#aja4 ,f9d+s & s5se ( ,congress4 ,title 
,,ii--,def9itions ,sec4 #bja4           
,def9itions4 ,title ,,iii--,improvem5ts 
to ! ,op]ations ( ! ,committee on ,=eign
 ,inve/m5t 9 ! ,unit$ ,/ates ,sec4 #cja4
 ,inclusion ( p>tn]%ip & side agreem5ts 
9 notice4 ,sec4 #cjb4 ,decl>ations      
relat+ to c]ta9 cov]$ transactions4     
,sec4 #cjc4 ,tim+ = reviews &           
inve/igations4 ,sec4 #cjd4 ,submission (
 c]tifications to ,congress4 ,sec4 #cje4
 ,analysis by ,director ( ,national     
,intellig5ce4 ,sec4 #cjf4 ,in=mation    
%>+4 ,sec4 #cjg4 ,action by ! ,presid5t4
 ,sec4 #cjh4 ,factors to be consid]$4   
,sec4 #cji4 ,mitigation & o!r actions by
 ! ,committee to address national       
security risks4 ,sec4 #caj4             
,c]tification ( notices & in=mation4    
,title ,,iv--,modification ( annual     
report ,sec4 #dja4 ,modification (      
annual report4 ,title ,v--,res\rces1    
special hir+ au?ority1 & outrea* ,sec4  
#eja4 ,c5tralization ( c]ta9 ,committee 

functions4 ,sec4 #ejb4 ,,cfius res\rce  
ne$s4 ,sec4 #ejc4 ,,cfius outrea*4      
,title ,,vi--,miscellane\s ,,firrma     
provisions ,sec4 #fja4 ,con=m+ am5dm5t4 
,sec4 #fjb4 ,regulatory c]ta9ty = ,unit$
 ,/ates bus9esses4 ,title ,,vii--,common
 ,s5se ,cr$it ,union ,capital ,relief   
,sec4 #gja4 ,delay 9 effective date4    
,title ,,viii--,export ,control ,re=m   
,sec4 #hja4 ,%ort title4 ,sec4 #hjb4    
,def9itions4 ,subtitle ,a--,au?ority &  
adm9i/ration ( controls ,sec4 #haa4     
,%ort title4 ,sec4 #hab4 ,/atem5t (     
policy4 ,sec4 #hac4 ,au?ority ( !       
,presid5t4 ,sec4 #had4 ,additional      
au?orities4 ,sec4 #hae4 ,adm9i/ration ( 
export controls4 ,sec4 #haf4 ,control   
li/s4 ,sec4 #hag4 ,lic5s+4 ,sec4 #hah4  
,compliance assi/ance4 ,sec4 #hai4      
,requirem5ts to id5tify & control em]g+1
 f\ndational1 & o!r critical te*nologies
 9 export control regulations4 ,sec4    
#hbj4 ,review relat+ to c\ntries subject
 to compreh5sive ,unit$ ,/ates arms     
emb>go4 ,sec4 #hba4 ,p5alties4 ,sec4    

#hbb4 ,en=cem5t4 ,sec4 #hbc4            
,adm9i/rative proc$ure4 ,sec4 #hbd4     
,annual report to ,congress4 ,sec4 #hbe4
 ,repeal4 ,sec4 #hbf4 ,effect on o!r    
,acts4 ,sec4 #hbg4 ,transition          
provisions4 ,subtitle ,b--,anti-,boycott
 ,act ( #bjah ,sec4 #hca4 ,%ort title4  
,sec4 #hcb4 ,/atem5t ( policy4 ,sec4    
#hcc4 ,=eign boycotts4 ,sec4 #hcd4      
,en=cem5t4 ,subtitle ,c--,sanctions     
,reg>d+ ,missile ,prolif]ation &        
,*emical & ,biological ,weapons         
,prolif]ation ,sec4 #hda4 ,missile      
prolif]ation control violations4 ,sec4  
#hdb4 ,*emical & biological weapons     
prolif]ation sanctions4 ,subtitle       
,d--,adm9i/rative au?orities ,sec4 #hea4
 ,"u ,secret>y ( ,comm]ce = ,indu/ry &  
,security4  ,i ,f9d+s & ,s5se (         
,congress  #aja4 ,f9d+s & s5se (        
,congress  7a7 ,f9d+s ,! ,congress f9ds 
! foll[+3 7#a7 ,accord+ to a ,febru>y   
#bjaf report by ! ,dep>tm5t ( ,comm]ce's
 ,int]national ,trade ,adm9i/ration1 #ab
 million ,unit$ ,/ates work]s1 equival5t

 to #h4e p]c5t ( ! labor =ce1 h jobs    
result+ f =eign inve/m5t1 includ+ #c4e  
million jobs 9 ! manufactur+ sector     
alone4  7#b7 ,9 #bjaf1 new =eign direct 
inve/m5t 9 ,u4,s4 manufactur+ total$    
#abi4d billion4  7#c7 ,! ,dep>tm5t (    
,comm]ce's ,bureau ( ,economic ,analysis
 conclud$ t 9 #bjae1 =eign-own$         
affiliates 9 ! ,unit$ ,/ates--  7,a7    
,contribut$ #hid4e billion 9 value add$ 
to ! ,u4,s4 economy2  7,b7 export$ goods
 valu$ at #ceb4h billion1 acc\nt+ =     
ne>ly a qu>t] ( total ,u4,s4 goods      
exports2  7,c7 und]took #ef4g billion 9 
rese>* & developm5t2 &  7,d7 ! sev5     
l>ge/ inve/+ c\ntries1 all ( :i* are    
,unit$ ,/ates allies--! ,unit$ ,k+dom1  
,japan1 ,g]many1 ,france1 ,canada1      
,switz]l&1 & ! ,ne!rl&s--acc\nt$ = #gb4a
 p]c5t ( ,u4,s4 affiliate value add$ &  
ov] #hj p]c5t ( affiliates' ,r,d        
exp5ditures4  7#d7 ,accord+ to !        
,gov]nm5t ,acc\ntability ,(fice 7,,gao71
 f #bjaa to #bjaf1 ! numb] (            
transactions review$ by ! ,committee on 

,=eign ,inve/m5t 9 ! ,unit$ ,/ates      
7,,cfius7 grew by #ee p]c5t1 :ile ag5cy 
/aff assign$ to ! reviews increas$ by   
#aa p]c5t4  7#e7 ,9 light ( /aff+       
con/ra9ts at ,,cfius1 ,,gao has caution$
 aga9/ exp&+ ,,cfius's au?orities       
precipit\sly4 ,accord+ to a ,febru>y    
#bjah report 7,,gao-#ah-bdi71 ,,gao     
not$3 ,(ficials f ,treasury & o!r memb] 
ag5cies are aw>e ( pressures on _!      
,,cfius /aff giv5 ! curr5t workload & h 
express$ conc]ns ab\t possible workload 
increases44 ,,gao conclud$3 ,)\t atta9+ 
an und]/&+ ( ! /aff+ levels ne$$ to     
address ! curr5t & future ,,cfius       
workload1 p>ticul>ly if legislative     
*anges to ,,cfius's au?orities fur!r    
exp& its workload1 ,,cfius may be limit$
 9 its ability to fulfill its objectives
 & address ?reats to ! national security
 ( ! ,unit$ ,/ates44  7#f7 ,on ,m>* #cj1
 #aied1 ,dwight ,david ,eis5h[]--five-/>
 g5]al1 ,supreme ,alli$ ,comm&]1 & #cd? 
,presid5t ( ! ,unit$ ,/ates--9 8        
,special ,message to ! ,congress on     

,=eign ,economic ,policy1 c\nsel$3      
,great mutual advantages to buy] &      
sell]1 to produc] & consum]1 to inve/or 
& to ! community :]e inve/m5t is made1  
accrue f high levels ( trade &          
inve/m5t44 ,he cont9u$3 ,! int]nal /r5g?
 ( ! ,am]ican economy has evolv$ f su* a
 sy/em ( mutual advantage4 ,9 ! press ( 
o!r problems & 9 ! ha/e to meet         
em]g5cies1 ?is nation--& _m o!r nations 
( ! free _w--h all too (t5 lo/ sight (  
?is c5tral fact44 ,presid5t ,eis5h[]    
conclud$3 ,if we fail 9 our trade       
policy1 we may fail 9 all4 ,our dome/ic 
employm5t1 our /&>d ( liv+1 our         
security1 & ! solid>ity ( ! free _w--all
 are involv$44  7b7 ,s5se ( ,congress ,x
 is ! s5se ( ,congress t-- 7#a7 =eign   
inve/m5t provides sub/antial b5efits to 
! ,unit$ ,/ates1 includ+ ! promotion (  
economic gr[?1 productivity1 innovation1
 competitiv5ess1 & job creation1 !reby  
enhanc+ ,u4,s4 national security2  7#b7 
ma9ta9+ ! commitm5t ( ! ,unit$ ,/ates to
 an op5 inve/m5t policy enc\rages o!r   

c\ntries to act simil>ly & helps exp&   
=eign m>kets = ,u4,s4 bus9esses2  7#c7 !
 ,committee on ,=eign ,inve/m5t 9 !     
,unit$ ,/ates1 z a complem5t to dome/ic 
& multilat]al export control regimes1   
plays a critical role 9 protect+ !      
national security ( ! ,unit$ ,/ates2    
7#d7 9 ord] to ma9ta9 ! ,committee's    
effectiv5ess & gu>d aga9/ mission creep1
 ,,cfius %\ld rema9 n>r[ly focus$ on    
confront+ risks relat$ to national      
security2  7#e7 x is ess5tial t ! memb] 
ag5cies ( ! ,committee are adequately   
res\rc$ & able to hire appropriately    
qualifi$ individuals 9 a timely mann] s 
t ,,cfius may promptly complete         
transaction reviews1 id5tify & respond  
to evolv+ national security risks1 &    
en=ce mitigation agreem5ts effectively2 
7#f7 ! ,presid5t %\ld c>ry out          
int]national outrea* to promote !       
b5efits ( =eign inve/m5t = global       
economic gr[?1 :ile also assi/+ ,unit$  
,/ates p>tn]s to address national       
security risks2 &  7#g7 x is ! policy ( 

! ,unit$ ,/ates to en?usia/ically       
welcome & support =eign inve/m5t1       
consi/5t ) national security            
consid]ations4  ,,ii ,def9itions  #bja4 
,def9itions ,section #gba7;a7 ( !       
,def5se ,production ,act ( #aiej 7#ej   
,u4,s4,c4 #defe7;a77 is am5d$-- 7#a7 by 
/rik+ p>agraphs 7#b71 7#c71 & 7#d7 &    
ins]t+ ! foll[+3  7#b7 ,control ,! t]m  
control means ! p[]1 direct or indirect1
 :e!r or n ex]cis$1 to det]m9e1 direct1 
or decide important matt]s affect+ an   
entity1 subject to regulations prescrib$
 by ! ,committee4  7#c7 ,cov]$          
transaction  7,a7 ,9 g5]al ,! t]m cov]$ 
transaction means any transaction       
describ$ 9 subp>agraph 7,b7 or 7,c7 t is
 propos$1 p5d+1 or complet$ on or aft] !
 date ( ! enactm5t ( ! ,=eign ,inve/m5t 
,risk ,review ,mod]nization ,act (      
#bjah4  7,b7 ,transactions describ$ ,a  
transaction describ$ 9 ?is subp>agraph  
is any ( ! foll[+3 7i7 ,any m]g]1       
acquisition1 takeov]1 or jo9t v5ture t  
is propos$ or p5d+ aft] ,augu/ #bc1     

#aihh1 by or ) any =eign p]son t c\ld   
result 9 =eign control ( any ,unit$     
,/ates bus9ess4  7ii7 ,! pur*ase or     
lease by1 or concession to1 a =eign     
p]son ( private or public real e/ate t--
 7,i7 is--  7aa7 locat$ 9 ! ,unit$      
,/ates & is1 or is 9 close proximity to1
 a ,unit$ ,/ates milit>y in/allation2 or
  7bb7 itself1 or is locat$ at & w      
function z "p (1 an air or sea port2    
7,,ii7 is n a s+le h\s+ unit1 z def9$ by
 ! ,bureau ( ! ,c5sus2  7,,iii7 is n 9  
an urbaniz$ area1 z set =? by ! ,bureau 
( ! ,c5sus 9 its mo/ rec5t c5sus1 except
 z o!rwise prescrib$ by ! ,committee 9  
regulations 9 consultation ) ! ,secret>y
 ( ,def5se2 &  7,,iv7 meets su* o!r     
crit]ia z ! ,committee prescribes by    
regulation4  7iii7 ,any *ange 9 ! rights
 t a =eign p]son has ) respect to a     
,unit$ ,/ates bus9ess 9 :i* ! =eign     
p]son has an inve/m5t1 if t *ange is    
likely to result 9 =eign control ( !    
,unit$ ,/ates bus9ess4  7iv7 ,any       
transaction or o!r device ent]$ into or 

employ$ = ! purpose ( evad+ ?is section1
 subject to regulations prescrib$ by !  
,committee4  7,c7 ,s5sitive transactions
 involv+ c\ntries ( special conc]n  7i7 
,9 g5]al ,a transaction describ$ 9 ?is  
subp>agraph is any inve/m5t 9 an        
unaffiliat$ ,unit$ ,/ates bus9ess by a  
=eign p]son t--  7,i7 is-- 7aa7 a       
national or a gov]nm5t (1 or a =eign    
entity organiz$ "u ! laws (1 a c\ntry ( 
special conc]n2 or  7bb7 a =eign        
entity-- 7,,aa7 ov] :i* control is      
ex]cis$ or ex]cisable by a national or a
 gov]nm5t (1 or by a =eign entity       
organiz$ "u ! laws (1 a c\ntry ( special
 conc]n2 or 7,,bb7 9 :i* ! gov]nm5t ( a 
c\ntry ( special conc]n has a sub/antial
 int]e/2 &  7,,ii7 z a result ( !       
transaction1 c\ld obta9---  7aa7        
s5sitive p]sonal data1 z def9$ by       
regulations prescrib$ by ! ,committee1 (
 ,unit$ ,/ates citiz5s1 if su* data may 
be exploit$ 9 a mann] t ?reat5s national
 security2 or  7bb7 influ5ce ov]        
sub/antive decisionmak+ ( ! ,unit$      

,/ates bus9ess reg>d+ ! use1 developm5t1
 acquisition1 or release (-- 7,,aa7     
s5sitive p]sonal data ( ,unit$ ,/ates   
citiz5s1 z describ$ 9 item 7aa72 or     
7,,bb7 critical te*nologies4  7,,iii7   
,c\ntries ( special conc]n ,= ! purposes
 ( ?is subp>agraph1 ! t]m c\ntries (    
special conc]n means-- 7aa7 any =eign   
c\ntry t is subject to export           
re/rictions pursuant to section #gdd4ba 
( title #ae1 ,code ( ,f$]al             
,regulations2  7bb7 any c\ntry det]m9$  
by ! ,secret>y ( ,/ate to be a /ate     
sponsor ( t]rorism2 &  7cc7 any c\ntry  
t-- 7,,aa7 is subject to a ,unit$ ,/ates
 arms emb>go1 z specifi$ 9 li/ ,d3#e (  
,c\ntry ,gr\p ,d 9 ,supplem5t ,no4 #a to
 "p #gdj ( title #ae1 ,code ( ,f$]al    
,regulations2 & 7,,bb7 is id5tifi$ z a  
c\ntry ( special conc]n 9 regulations   
prescrib$ by ! ,committee4  7ii7        
,inve/m5t def9$ ,= ! purposes ( ?is     
subp>agraph1 ! t]m inve/m5t means !     
acquisition ( an equity int]e/1 includ+ 
cont+5t equity int]e/1 z fur!r def9$ 9  

regulations prescrib$ by ! ,committee4  
7iii7 ,unaffiliat$ ,unit$ ,/ates bus9ess
 def9$ ,= ! purposes ( ?is subp>agraph1 
) respect to an inve/m5t describ$ "u    
clause 7i71 & z fur!r def9$ 9           
regulations prescrib$ by ! ,committee1 !
 t]m unaffiliat$ ,unit$ ,/ates bus9ess  
means a ,unit$ ,/ates bus9ess t is n    
subject to ! same ultimate own]%ip ( !  
=eign p]son und]tak+ ! inve/m5t4  7iv7  
,waiv] ,! ,presid5t may waive any       
requirem5t ( ?is subp>agraph ^u report+ 
to ! ,committees on ,f9ancial ,s]vices &
 ,=eign ,affairs ( ! ,h\se & !          
,committees on ,bank+1 ,h\s+1 & ,urban  
,affairs & ,=eign ,relations ( ! ,s5ate 
t ! waiv] is important to ! national    
int]e/ ( ! ,unit$ ,/ates1 ) a detail$   
explanation ( ! reasons !re=4  7,d7     
,transf]s ( c]ta9 assets pursuant to    
bankruptcy proce$+s or o!r defaults ,!  
,committee %all prescribe regulations to
 cl>ify t ! t]m cov]$ transaction       
includes any transaction describ$ 9     
subp>agraphs 7,b7 or 7,c7 t arises      

pursuant to a bankruptcy proce$+ or o!r 
=m ( default on debt4  7#d7 ,=eign      
gov]nm5t-controll$ transaction ,! t]m   
=eign gov]nm5t-controll$ transaction    
means any cov]$ transaction t c\ld      
result 9 control ( a ,unit$ ,/ates      
bus9ess by a =eign gov]nm5t or a p]son  
controll$ by or act+ on behalf ( a =eign
 gov]nm5t4  2  7#b7 by am5d+ p>agraph   
7#g7 to read z foll[s3  7#g7 ,critical  
te*nologies ,! t]m critical te*nologies 
means--  7,a7 def5se articles or def5se 
s]vices cov]$ by ! ,unit$ ,/ates        
,munitions ,li/ 7,,usml71 :i* is set =? 
9 ! ,int]national ,traffic 9 ,arms      
,regulations 7,,it>7 7#bb ,c4,f4,r4 p>ts
 #abj-acj72  7,b7 ^? items specifi$ on !
 ,comm]ce ,control ,li/ 7,,ccl7 set =? 9
 ,supplem5t ,no4 #a to "p #ggd ( !      
,export ,adm9i/ration ,regulations      
7,,e>7 7#ae ,c4,f4,r4 p>ts #gcj-ggd7 t  
are controll$ pursuant to multilat]al   
regimes 7i4e4 = reasons ( national      
security1 *emical & biological weapons  
prolif]ation1 nucle> nonprolif]ation1 or

 missile te*nology71 z well z ^? t are  
controll$ = reasons ( regional /ability 
or surreptiti\s li/5+2  7,c7 specially  
design$ & prep>$ nucle> equipm5t1 p>ts &
 compon5ts1 mat]ials1 s(tw>e1 &         
te*nology specifi$ 9 ! ,assi/ance to    
,=eign ,atomic ,en]gy ,activities       
regulations 7#aj ,c4,f4,r4 "p #haj71 &  
nucle> facilities1 equipm5t1 & mat]ial  
specifi$ 9 ! ,export & ,import ( ,nucle>
 ,equipm5t & ,mat]ial regulations 7#aj  
,c4,f4,r4 "p #aaj72  7,d7 select ag5ts &
 tox9s specifi$ 9 ! ,select ,ag5ts &    
,tox9s regulations 7#g ,c4,f4,r4 "p     
#cca1 #i ,c4,f4,r4 "p #aba1 & #db       
,c4,f4,r4 "p #gc72 &  7,e7 em]g+1       
f\ndational1 or o!r critical te*nologies
 t are controll$ pursuant to section    
#hai ( ! ,=eign ,inve/m5t ,risk ,review 
,mod]nization ,act ( #bjah4  2 &  7#c7  
by add+ at ! end ! foll[+3  7#i7 ,=eign 
p]son ,! t]m =eign p]son means--  7,a7  
any =eign national1 =eign gov]nm5t1 or  
=eign entity2 or  7,b7 any entity ov]   
:i* control is ex]cis$ or ex]cisable by 

a =eign national1 =eign gov]nm5t1 or    
=eign entity4  7#aj7 ,sub/antial int]e/ 
,! t]m sub/antial int]e/ has ! mean+    
giv5 to su* t]m 9 regulations prescrib$ 
by ! ,committee1 b does n include a vot+
 int]e/ ( less ?an t5 p]c5t or own]%ip  
int]e/s held or acquir$ solely = !      
purpose ( passive inve/m5t4  7#aa7      
,unit$ ,/ates bus9ess ,! t]m ,unit$     
,/ates bus9ess means any entity1        
irrespective ( ! nationality ( ! p]sons 
t control x1 engag$ 9 int]/ate comm]ce 9
 ! ,unit$ ,/ates1 b only to ! ext5t (   
its activities 9 int]/ate comm]ce4  4   
,,iii ,improvem5ts to ! ,op]ations ( !  
,committee on ,=eign ,inve/m5t 9 !      
,unit$ ,/ates  #cja4 ,inclusion (       
p>tn]%ip & side agreem5ts 9 notice      
,section #gba7;b77#a77;,c7 ( ! ,def5se  
,production ,act ( #aiej 7#ej ,u4,s4,c4 
#defe7;b77#a77;,c77 is am5d$ by add+ at 
! end ! foll[+3  7iv7 ,inclusion (      
p>tn]%ip & side agreem5ts ,subject to   
regulations prescrib$ by ! ,committee1 !
 ,committee may require a writt5 notice 

submitt$ "u clause 7i7 by a p>ty to a   
cov]$ transaction to include a copy (   
any p>tn]%ip agreem5ts1 integration     
agreem5ts1 or o!r side agreem5ts relat+ 
to ! transaction1 z specifi$ 9          
regulations prescrib$ by ! ,committee4  
4  #cjb4 ,decl>ations relat+ to c]ta9   
cov]$ transactions  7a7 ,9 g5]al        
,section #gba7;b77#a77;,c7 ( ! ,def5se  
,production ,act ( #aiej 7#ej ,u4,s4,c4 
#defe7;b77#a77;,c771 z am5d$ by section 
#cja1 is fur!r am5d$ by add+ at ! end ! 
foll[+3  7v7 ,decl>ations ) respect to  
c]ta9 cov]$ transactions  7,i7 ,volunt>y
 decl>ations ,= ! purpose ( exp$it+ !   
review ( c]ta9 cov]$ transactions t !   
,committee det]m9es are likely to pose  
limit$ risk1 ! ,committee may prescribe 
regulations to p]mit p>ties to !        
transaction to submit a decl>ation )    
basic in=mation reg>d+ ! transaction1   
unless ! p>ties submit a writt5 notice  
"u clause 7i74  7,,ii7 ,m&atory         
decl>ations  7aa7 ,9 g5]al ,! ,committee
 may prescribe regulations to require ! 

p>ties to a cov]$ transaction to submit 
a decl>ation describ$ 9 subclause 7,i7 )
 respect to ! transaction if !          
transaction involves an inve/m5t t      
results 9 ! acquisition1 directly or    
indirectly1 ( a sub/antial int]e/ 9 a   
,unit$ ,/ates bus9ess by a =eign p]son 9
 :i* a =eign gov]nm5t has1 directly or  
indirectly1 a sub/antial int]e/4  7bb7  
,submission ( writt5 notice z an        
alt]native ,p>ties to a cov]$           
transaction = :i* a decl>ation is       
requir$ "u ?is clause may in/ead elect  
to submit a writt5 notice "u clause 7i74
  7cc7 ,tim+ ( submission ,) respect to 
! regulations describ$ "u subclause     
7,i71 ! ,committee may n require a      
decl>ation to be submitt$ m ?an #cj days
 9 advance ( ! completion ( !           
transaction4  7,,iii7 ,p5alties ,!      
,committee may impose a p5alty pursuant 
to subsection 7h77#c77;,a7 ) respect to 
a p>ty t fails to comply ) ?is clause4  
7,,iv7 ,committee response to decl>ation
  7aa7 ,9 g5]al ,^u receiv+ a decl>ation

 "u ?is clause ) respect to a           
transaction1 ! ,committee may1 at its   
discretion-- 7,,aa7 reque/ t ! p>ties to
 ! transaction file a writt5 notice "u  
clause 7i71 provid$ t ! ,committee      
includes an explanation ( ! reasons = ! 
reque/2 7,,bb7 in=m ! p>ties to !       
transaction t ! ,committee is n able to 
complete action "u ?is section ) respect
 to ! transaction on ! basis ( !        
decl>ation & t ! p>ties may file a      
writt5 notice "u clause 7i7 to seek     
writt5 notification f ! ,committee t !  
,committee has complet$ all action "u   
?is section ) respect to ! transaction2 
7,,cc7 initiate a unilat]al review ( !  
transaction "u subp>agraph 7,d72 or     
7,,dd7 notify ! p>ties 9 writ+ t !      
,committee has complet$ all action "u   
?is section ) respect to ! transaction4 
7bb7 ,tim+ ,! ,committee %all take      
action "u item 7aa7 )9 #ae days (       
receiv+ a decl>ation "u ?is clause4     
7cc7 ,refil+ ( decl>ation ,! ,committee 
may n reque/ or recomm5d t a decl>ation 

be )drawn & refil$1 except to p]mit     
p>ties to a transaction to correct      
mat]ial errors or omissions4  7,v7      
,regulations ,9 prescrib+ regulations   
e/abli%+ requirem5ts = decl>ations      
submitt$ "u ?is clause1 ! ,committee    
%all ensure t su* decl>ations are       
submitt$ z abbreviat$ notifications t d 
n g5]ally exce$ #e pages 9 l5g?4  7,,vi7
 ,inve/m5t def9$ ,= ! purposes ( ?is    
clause1 ! t]m inve/m5t means !          
acquisition ( an equity int]e/1 includ+ 
cont+5t equity int]e/1 z fur!r def9$ 9  
regulations prescrib$ by ! ,committee4  
4  7b7 ,/ipulations reg>d+ transactions 
,section #gba7;b77#a77;,c7 ( ! ,def5se  
,production ,act ( #aiej 7#ej ,u4,s4,c4 
#defe7;b77#a77;,c771 z am5d$ by ?is     
section1 is fur!r am5d$ by add+ at ! end
 ! foll[+3  7viii7 ,/ipulations reg>d+  
transactions  7,i7 ,9 g5]al ,9 a writt5 
notice submitt$ "u clause 7i7 or a      
decl>ation submitt$ "u clause 7v7 )     
respect to a transaction1 a p>ty to !   
transaction may--  7aa7 /ipulate t !    

transaction is a cov]$ transaction2 &   
7bb7 if ! p>ty /ipulates t ! transaction
 is a cov]$ transaction "u item 7aa71   
/ipulate t ! transaction is a =eign     
gov]nm5t-controll$ transaction4  7,,ii7 
,basis = /ipulation ,a writt5 notice    
submitt$ "u clause 7i7 or a decl>ation  
submitt$ "u clause 7v7 t includes a     
/ipulation "u subclause 7,i7 %all       
include a description ( ! basis = !     
/ipulation4  4  #cjc4 ,tim+ = reviews & 
inve/igations ,section #gba7;b7 ( !     
,def5se ,production ,act ( #aiej 7#ej   
,u4,s4,c4 #defe7;b77 is am5d$-- 7#a7 9  
p>agraph 7#b71 by /rik+ subp>agraph 7,c7
 & ins]t+ ! foll[+3  7,c7 ,tim+  7i7 ,9 
g5]al ,except z provid$ 9 clause 7ii71  
any inve/igation "u subp>agraph 7,a7    
%all be complet$ be=e ! end ( ! #de-;day
 p]iod beg9n+ on ! date on :i* !        
inve/igation comm5c$4  7ii7 ,ext5sion = 
extraord9>y circum/ances  7,i7 ,9 g5]al 
,9 extraord9>y circum/ances 7z def9$ by 
! ,committee 9 regulations71 ! *airp]son
 may1 at ! reque/ ( ! head ( ! lead     

ag5cy1 ext5d an inve/igation "u         
subp>agraph 7,a7 = n m ?an "o #ae-;day  
p]iod4  7,,ii7 ,nondelegation ,!        
au?ority ( ! *airp]son & ! head ( ! lead
 ag5cy ref]r$ to 9 subclause 7,i7 may n 
be delegat$ to any p]son o!r ?an !      
,deputy ,secret>y ( ! ,treasury or !    
deputy head 7or equival5t !re(7 ( ! lead
 ag5cy1 z ! case may be4  7,,iii7       
,notification to p>ties ,if ! ,committee
 ext5ds ! deadl9e "u subclause 7,i7 )   
respect to a cov]$ transaction1 !       
,committee %all notify ! p>ties to !    
transaction ( ! ext5sion4  2 &  7#b7 by 
add+ at ! end ! foll[+3  7#h7 ,toll+ (  
deadl9es dur+ lapse 9 appropriations    
,any deadl9e or "t limitation "u ?is    
subsection %all be toll$ dur+ a lapse 9 
appropriations4  4  #cjd4 ,submission ( 
c]tifications to ,congress ,section     
#gba7;b77#c77;,c7 ( ! ,def5se           
,production ,act ( #aiej 7#ej ,u4,s4,c4 
#defe7;b77#c77;,c77 is am5d$-- 7#a7 9   
clause 7i71 by am5d+ subclause 7,,ii7 to
 read z foll[s3  7,,ii7 a c]tification t

 all relevant national security factors1
 includ+ factors enum]at$ 9 subsection  
7f71 h receiv$ full consid]ation4  2 &  
7#b7 by add+ at ! end ! foll[+3  7v7    
,au?ority to consolidate docum5ts       
,in/ead ( transmitt+ a sep>ate c]tifi$  
notice or c]tifi$ report "u subp>agraph 
7,a7 or 7,b7 ) respect to ea* cov]$     
transaction1 ! ,committee may1 on a     
mon?ly basis1 transmit su* notices &    
reports 9 a consolidat$ docum5t to !    
,memb]s ( ,congress specifi$ 9 clause   
7iii74  4  #cje4 ,analysis by ,director 
( ,national ,intellig5ce ,section       
#gba7;b77#d7 ( ! ,def5se ,production    
,act ( #aiej 7#ej ,u4,s4,c4             
#defe7;b77#d77 is am5d$-- 7#a7 by /rik+ 
subp>agraph 7,a7 & ins]t+ ! foll[+3     
7,a7 ,analysis requir$  7i7 ,9 g5]al ,! 
,director ( ,national ,intellig5ce %all 
exp$iti\sly c>ry out a ?or\gh analysis (
 any ?reat to ! national security ( !   
,unit$ ,/ates pos$ by any cov]$         
transaction1 :i* %all include !         
id5tification ( any recogniz$ gaps 9 !  

collection ( intellig5ce relevant to !  
analysis4  7ii7 ,views ( intellig5ce    
ag5cies ,! ,director %all seek &        
incorporate into ! analysis requir$ by  
clause 7i7 ! views ( all affect$ or     
appropriate intellig5ce ag5cies )       
respect to ! transaction4  7iii7        
,updates ,at ! reque/ ( ! lead ag5cy1 ! 
,director %all update ! analysis        
conduct$ "u clause 7i7 ) respect to a   
cov]$ transaction ) respect to :i* an   
agreem5t 0 ent]$ into "u subsection     
7l77#c77;,a74  7iv7 ,indep5d5ce &       
objectivity ,! ,committee %all ensure t 
its processes "u ?is section pres]ve !  
ability ( ! ,director to conduct an     
analysis "u clause 7i7 t is indep5d5t1  
objective1 & consi/5t ) all applicable  
directives1 policies1 & analytic        
tradecraft /&>ds ( ! intellig5ce        
community4  2  7#b7 by r$esignat+       
subp>agraphs 7,b71 7,c71 & 7,d7 z       
subp>agraphs 7,c71 7,d71 & 7,e71        
respectively2  7#c7 by ins]t+ aft]      
subp>agraph 7,a7 ! foll[+3  7,b7 ,basic 

?reat in=mation  7i7 ,9 g5]al ,!        
,director ( ,national ,intellig5ce may  
provide ! ,committee ) basic in=mation  
reg>d+ any ?reat to ! national security 
( ! ,unit$ ,/ates pos$ by a cov]$       
transaction describ$ 9 clause 7ii7      
in/ead ( conduct+ ! analysis requir$ by 
subp>agraph 7,a74  7ii7 ,cov]$          
transaction describ$ ,a cov]$           
transaction is describ$ 9 ?is clause    
if-- 7,i7 ! transaction is describ$ 9   
subsection 7a77#c77;,b77ii72  7,,ii7 !  
,director ( ,national ,intellig5ce has  
complet$ an analysis pursuant to        
subp>agraph 7,a7 involv+ ea* =eign p]son
 t is a p>ty to ! transaction dur+ ! #ab
 mon?s prec$+ ! review or inve/igation (
 ! transaction "u ?is section2 or       
7,,iii7 ! transaction o!rwise meets     
crit]ia agre$ ^u by ! ,committee & !    
,director ( ,national ,intellig5ce =    
purposes ( ?is subp>agraph4  2 &  7#d7  
by add+ at ! end ! foll[+3  7,f7        
,assessm5t ( op]ational impact ,!       
,director may provide to ! ,committee an

 assessm5t1 sep>ate f ! analyses "u     
subp>agraphs 7,a7 & 7,b71 ( any         
op]ational impact ( a cov]$ transaction 
on ! intellig5ce community & a          
description ( any actions t h be5 or w  
be tak5 to mitigate any su* impact4     
7,g7 ,submission to ,congress ,!        
,committee %all include ! analysis      
requir$ by subp>agraph 7,a7 ) respect to
 a cov]$ transaction 9 ! report requir$ 
"u subsection 7m77#a71 subject to !     
requirem5ts ( subsection 7m77#e74  4    
#cjf4 ,in=mation %>+ ,section #gba7;c7 (
 ! ,def5se ,production ,act ( #aiej 7#ej
 ,u4,s4,c4 #defe7;c77 is am5d$-- 7#a7 by
 /rik+ ,any in=mation & ins]t+ ! foll[+3
  7#a7 ,9 g5]al ,any in=mation  2 &     
7#b7 by add+ at ! end ! foll[+3  7#b7   
,exception ,p>agraph 7#a7 %all n        
prohibit ! disclosure ( in=mation or    
docum5t>y mat]ial t ! p>ty fil+ su*     
in=mation or mat]ial cons5t$ to be      
disclos$ to ?ird p>ties4  4  #cjg4      
,action by ! ,presid5t  7a7 ,9 g5]al    
,section #gba7;d77#b7 ( ! ,def5se       

,production ,act ( #aiej 7#ej ,u4,s4,c4 
#defe7;d77#b77 is am5d$ by /rik+ n lat] 
?an #ae days & all t foll[s & ins]t+ !  
foll[+3  ) respect to a cov]$           
transaction n lat] ?an #ae days aft] !  
e>li] (-- 7,a7 ! date on :i* !          
inve/igation ( ! transaction "u         
subsection 7b7 is complet$2 or  7,b7 !  
date on :i* ! ,committee o!rwise ref]s !
 transaction to ! ,presid5t "u          
subsection 7l77#d74  4  7b7 ,civil      
p5alties ,section #gba7;h77#c77;,a7 ( ! 
,def5se ,production ,act ( #aiej 7#ej   
,u4,s4,c4 #defe7;h77#c77;,a77 is am5d$  
by /rik+ includ+ any mitigation & all t 
foll[s ?r\gh subsection 7l7 & ins]t+    
includ+ any mitigation agreem5t ent]$   
into1 conditions impos$1 or ord] issu$  
pursuant to ?is section4  #cjh4 ,factors
 to be consid]$ ,section #gba7;f7 ( !   
,def5se ,production ,act ( #aiej 7#ej   
,u4,s4,c4 #defe7;f77 is am5d$-- 7#a7 9  
p>agraph 7#d71 by /rik+ propos$ or p5d+2
  7#b7 by /rik+ p>agraph 7#e72  7#c7 by 
r$esignat+ p>agraphs 7#f71 7#g71 7#h71  

7#i71 7#aj71 & 7#aa7 z p>agraphs 7#e71  
7#f71 7#g71 7#h71 7#i71 & 7#af71        
respectively2  7#d7 9 p>agraph 7#i71 z s
 r$esignat$1 by /rik+ & at ! end2 &     
7#e7 by ins]t+ aft] p>agraph 7#i71 z s  
r$esignat$1 ! foll[+3  7#aj7 ! degree to
 :i* ! cov]$ transaction is likely to   
?reat5 ! ability ( ! ,unit$ ,/ates      
,gov]nm5t to acquire or ma9ta9 !        
equipm5t & sy/ems t are necess>y =      
def5se1 intellig5ce1 or o!r national    
security functions2  7#aa7 ! pot5tial   
national security-relat$ effects ( !    
cumulative control ( any "o type (      
critical infra/ructure1 en]gy asset1    
mat]ial1 or critical te*nology by a     
=eign p]son2  7#ab7 :e!r any =eign p]son
 t w\ld acquire control ( a ,unit$      
,/ates bus9ess z a result ( ! cov]$     
transaction has a hi/ory (--  7,a7      
comply+ ) ,unit$ ,/ates laws &          
regulations & prior adh]5ce1 if         
applicable1 to any agreem5t or          
condition1 z describ$ "u 7l77#a77;,a72 &
  7,b7 adh]+ to contracts or o!r        

agreem5ts ) entities ( ! ,unit$ ,/ates  
,gov]nm5t2  7#ac7 ! ext5t to :i* ! cov]$
 transaction is likely to release1 ei!r 
directly or indirectly1 s5sitive p]sonal
 data ( ,unit$ ,/ates citiz5s to a =eign
 p]son t may exploit t in=mation 9 a    
mann] t ?reat5s national security2      
7#ad7 :e!r ! cov]$ transaction is likely
 to exac]bate cyb]security              
vuln]abilities or is likely to result 9 
a =eign gov]nm5t ga9+ a significant new 
capability to engage 9 malici\s         
cyb]-enabl$ activities aga9/ ! ,unit$   
,/ates1 includ+ su* activities design$  
to affect ! outcome ( any election =    
,f$]al (fice2  7#ae7 :e!r ! cov]$       
transaction is likely to expose any     
in=mation reg>d+ s5sitive national      
security matt]s or s5sitive proc$ures or
 op]ations ( a ,f$]al law en=cem5t ag5cy
 ) national security responsibilities to
 a =eign p]son n au?oriz$ to receive t  
in=mation2 &  4  #cji4 ,mitigation & o!r
 actions by ! ,committee to address     
national security risks ,section #gba7l7

 ( ! ,def5se ,production ,act ( #aiej   
7#ej ,u4,s4,c4 #defe7l77 is am5d$-- 7#a7
 9 p>agraph 7#a7--  7,a7 9 subp>agraph  
7,a7-- 7i7 9 ! head+1 by /rik+ ,9 g5]al 
& ins]t+ ,agreem5ts & conditions2  7ii7 
by /rik+ ,! ,committee & ins]t+ !       
foll[+3  7i7 ,9 g5]al ,! ,committee  2 &
  7iii7 by add+ at ! end ! foll[+3  7ii7
 ,ab&onm5t ( transactions ,if a p>ty to 
a cov]$ transaction has volunt>ily *os5 
to ab&on ! transaction1 ! ,committee or 
lead ag5cy1 z ! case may be1 may        
negotiate1 ent] into or impose1 & en=ce 
any agreem5t or condition ) any p>ty to 
! cov]$ transaction = purposes (        
effectuat+ su* ab&onm5t & mitigat+ any  
?reat to ! national security ( ! ,unit$ 
,/ates t arises z a result ( ! cov]$    
transaction4  7iii7 ,agreem5ts &        
conditions relat+ to complet$           
transactions ,! ,committee or lead      
ag5cy1 z ! case may be1 may negotiate1  
ent] into or impose1 & en=ce any        
agreem5t or condition ) any p>ty to a   
complet$ cov]$ transaction 9 ord] to    

mitigate any int]im ?reat to ! national 
security ( ! ,unit$ ,/ates t may arise z
 a result ( ! cov]$ transaction until   
su* "t t ! ,committee has complet$      
action pursuant to subsection 7b7 or !  
,presid5t has tak5 action pursuant to   
subsection 7d7 ) respect to !           
transaction4  2  7,b7 by am5d+          
subp>agraph 7,b7 to read z foll[s3  7,b7
 ,treatm5t ( outdat$ agreem5ts or       
conditions ,! *airp]son & ! head ( any  
applicable lead ag5cy %all p]iodically  
review ! appropriat5ess ( an agreem5t or
 condition describ$ "u subp>agraph 7,a7 
& t]m9ate1 phase out1 or o!rwise am5d   
any agreem5t or condition if a ?reat no 
long] requires mitigation ?r\gh !       
agreem5t or condition4  2 &  7,c7 by    
add+ at ! end ! foll[+3  7,c7           
,limitations ,an agreem5t may n be ent]$
 into or condition impos$ "u subp>agraph
 7,a7 ) respect to a cov]$ transaction  
unless ! ,committee det]m9es t !        
agreem5t or condition resolves !        
national security conc]ns pos$ by !     

transaction1 tak+ into consid]ation :e!r
 ! agreem5t or condition is reasonably  
calculat$ to--  7i7 be effective2  7ii7 
all[ = compliance ) ! t]ms ( ! agreem5t 
or condition 9 an appropriately         
v]ifiable way2 &  7iii7 enable effective
 monitor+ ( compliance ) & en=cem5t ( ! 
t]ms ( ! agreem5t or condition4  7,d7   
,jurisdiction ,! provisions ( section   
#gjf7;b7 %all apply to any mitigation   
agreem5t ent]$ into or condition impos$ 
"u subp>agraph 7,a74  2 &  7#b7 by add+ 
at ! end ! foll[+3  7#d7 ,ref]ral to    
,presid5t ,! ,committee may1 at any "t  
dur+ ! review or inve/igation ( a cov]$ 
transaction "u subsection 7b71 complete 
! action ( ! ,committee ) respect to !  
transaction & ref] ! transaction to !   
,presid5t = action pursuant to          
subsection 7d74  7#e7 ,risk-bas$        
analysis requir$  7,a7 ,9 g5]al ,any    
det]m9ation ( ! ,committee to ref] a    
cov]$ transaction to ! ,presid5t "u     
p>agraph 7#d71 or to negotiate1 ent]    
into1 impose1 or en=ce any agreem5t or  

condition "u p>agraph 7#a77;,a7 )       
respect to a cov]$ transaction1 %all be 
bas$ on a risk-bas$ analysis1 conduct$  
by ! ,committee1 ( ! effects on !       
national security ( ! ,unit$ ,/ates ( ! 
cov]$ transaction1 :i* %all include--   
7i7 an assessm5t ( ! ?reat1             
vuln]abilities1 & consequ5ces to        
national security result+ f !           
transaction1 z ^! t]ms are def9$ or     
cl>ifi$ 9 guidance & regulations issu$  
by ! ,committee2 &  7ii7 an             
id5tification ( ea* relevant factor     
describ$ 9 subsection 7f7 t !           
transaction may sub/antially implicate4 
7,b7 ,compliance plans  7i7 ,9 g5]al ,9 
! case ( a cov]$ transaction ) respect  
to :i* an agreem5t or condition is ent]$
 into "u p>agraph 7#a77;,a71 !          
,committee or lead ag5cy1 z ! case may  
be1 %all =mulate1 adh]e to1 & keep      
updat$ a plan = monitor+ compliance ) ! 
agreem5t or condition4  7ii7 ,elem5ts   
,ea* plan requir$ by clause 7i7 )       
respect to an agreem5t or condition     

ent]$ into "u p>agraph 7#a77;,a7 %all   
include an explanation (--  7,i7 :i*    
memb] ( ! ,committee w h prim>y         
responsibility = monitor+ compliance ) !
 agreem5t or condition2  7,,ii7 h[      
compliance ) ! agreem5t or condition w  
be monitor$2  7,,iii7 h[ frequ5tly      
compliance reviews w be conduct$2       
7,,iv7 :e!r an indep5d5t entity w be    
utiliz$ "u subp>agraph 7,d7 to conduct  
compliance reviews2 &  7,v7 :at actions 
w be tak5 if ! p>ties fail to coop]ate  
reg>d+ monitor+ compliance ) ! agreem5t 
or condition4  7,c7 ,effect ( lack (    
compliance ,if1 at any "t aft] a        
mitigation agreem5t or condition is     
ent]$ into or impos$ "u p>agraph        
7#a77;,a71 ! ,committee or lead ag5cy1 z
 ! case may be1 det]m9es t a p>ty or    
p>ties to ! agreem5t or condition are n 
9 compliance ) ! t]ms ( ! agreem5t or   
condition1 ! ,committee or lead ag5cy   
may1 9 addition to ! au?ority ( !       
,committee to impose p5alties pursuant  
to subsection 7h77#c77;,a7 & to         

unilat]ally initiate a review ( any     
cov]$ transaction "u subsection         
7b77#a77;,d77iii77,i7--  7i7 negotiate a
 plan ( action = ! p>ty or p>ties to    
rem$iate ! lack ( compliance1 ) failure 
to abide by ! plan or o!rwise rem$iate !
 lack ( compliance s]v+ z ! basis = !   
,committee to f9d a mat]ial brea* ( !   
agreem5t or condition2  7ii7 require t !
 p>ty or p>ties submit any cov]$        
transaction initiat$ aft] ! date ( !    
det]m9ation ( noncompliance & be=e !    
date t is #e ye>s aft] ! date ( !       
det]m9ation to ! ,committee = review "u 
subsection 7b72 or  7iii7 seek          
injunctive relief4  7,d7 ,use (         
indep5d5t entities to monitor compliance
 ,if ! p>ties to an agreem5t or         
condition ent]$ into "u p>agraph        
7#a77;,a7 ent] into a contract ) an     
indep5d5t entity f outside ! ,unit$     
,/ates ,gov]nm5t = ! purpose ( monitor+ 
compliance ) ! agreem5t or condition1 ! 
,committee %all take su* action z is    
necess>y to prev5t any significant      

conflict ( int]e/ f aris+ ) respect to !
 entity & ! p>ties to ! transaction4    
7,e7 ,successors & assigns ,any agreem5t
 or condition ent]$ or impos$ "u        
p>agraph 7#a77;,a7 %all be consid]$ b9d+
 on all successors & assigns1 unless &  
until ! agreem5t or condition t]m9ates  
on its own t]ms or is o!rwise t]m9at$ by
 ! ,committee 9 ! ,committee's sole     
discretion4  7,f7 ,additional compliance
 measures ,subject to subp>agraphs 7,a7 
?r\gh 7,d71 ! ,committee %all develop & 
agree ^u me?ods = evaluat+ compliance ) 
any agreem5t ent]$ into or condition    
impos$ ) respect to a cov]$ transaction 
t w all[ ! ,committee to adequately     
ensure compliance )\t unnecess>ily      
div]t+ ,committee res\rces f assess+ any
 new cov]$ transaction = :i* a writt5   
notice "u clause 7i7 ( subsection       
7b77#a77;,c7 has be5 fil$1 & if         
necess>y1 rea*+ a mitigation agreem5t ) 
or impos+ a condition on a p>ty to su*  
cov]$ transaction or any cov]$          
transaction = :i* a review has be5      

reop5$ = any reason4  4  #caj4          
,c]tification ( notices & in=mation     
,section #gba7n7 ( ! ,def5se ,production
 ,act ( #aiej 7#ej ,u4,s4,c4 #defe7n77  
is am5d$-- 7#a7 by r$esignat+ p>agraphs 
7#a7 & 7#b7 z subp>agraphs 7,a7 & 7,b71 
respectively1 & by mov+ su*             
subp>agraphs1 z s r$esignat$1 #b ems to 
! "r2  7#b7 by /rik+ ,ea* notice &      
ins]t+ ! foll[+3  7#a7 ,9 g5]al ,ea*    
notice  2 &  7#c7 by add+ at ! end !    
foll[+3  7#b7 ,effect ( failure to      
submit ,! ,committee may n complete a   
review "u ?is section ( a cov]$         
transaction & may recomm5d to !         
,presid5t t ! ,presid5t susp5d or       
prohibit ! transaction or require       
dive/m5t "u subsection 7d7 if !         
,committee det]m9es t a p>ty to !       
transaction has--  7,a7 fail$ to submit 
a /atem5t requir$ by p>agraph 7#a72 or  
7,b7 includ$ false or mislead+ in=mation
 9 a notice or in=mation describ$ 9     
p>agraph 7#a7 or omitt$ mat]ial         
in=mation f su* notice or in=mation4    

7#c7 ,applicability ( law on fraud &    
false /atem5ts ,! ,committee %all       
prescribe regulations expressly provid+ 
= ! application ( section #ajja ( title 
#ah1 ,unit$ ,/ates ,code1 to all        
in=mation provid$ to ! ,committee "u ?is
 section by any p>ty to a cov]$         
transaction4  4  ,,iv ,modification (   
annual report  #dja4 ,modification (    
annual report ,section #gba7m7 ( !      
,def5se ,production ,act ( #aiej 7#ej   
,u4,s4,c4 #defe7m77 is am5d$-- 7#a7 9   
p>agraph 7#b71 by am5d+ subp>agraph 7,a7
 to read z foll[s3  7,a7 ,a li/ ( all   
notices fil$ & all reviews or           
inve/igations ( cov]$ transactions      
complet$ dur+ ! p]iod1 )--  7i7 a       
description ( ! outcome ( ea* review or 
inve/igation1 includ+ :e!r an agreem5t 0
 ent]$ into or condition 0 impos$ "u    
subsection 7l77#c77;,a7 ) respect to !  
transaction be+ review$ or inve/igat$1 &
 :e!r ! ,presid5t took any action "u ?is
 section ) respect to t transaction2    
7ii7 ! nature ( ! bus9ess activities or 

products ( ! ,unit$ ,/ates bus9ess ) :i*
 ! transaction 0 ent]$ into or int5d$ to
 be ent]$ into2 &  7iii7 in=mation ab\t 
any )drawal f ! process4  2  7#b7 9     
p>agraph 7#c7--  7,a7 by /rik+ critical 
te*nologies & all t foll[s ?r\gh ,9 ord]
 to assi/ & ins]t+ critical             
te*nologies4--,9 ord] to assi/2  7,b7 by
 /rik+ subp>agraph 7,b72 &  7,c7 by     
r$esignat+ clauses 7i7 & 7ii7 z         
subp>agraphs 7,a7 & 7,b71 respectively1 
& by mov+ su* subp>agraphs1 z s         
r$esignat$1 #b ems to ! left2 &  7#c7 by
 add+ at ! end ! foll[+3  7#d7          
,additional cont5ts ( report  7,a7      
,/ati/ics on compliance reviews conduct$
 & actions tak5 by ! ,committee "u      
subsection 7l77#f71 includ+ subp>agraph 
7,d7 ( t subsection 7l77#f71 dur+ t     
p]iod & a description ( any actions tak5
 by ! ,committee to impose p5alties or  
initiate a unilat]al review pursuant to 
subsection 7b77#a77;,d77iii77,i74  7,b7 
,cumulative & tr5d in=mation on ! numb] 
( decl>ations fil$ "u subsection        

7b77#a77;,c77v71 ! actions tak5 by !    
,committee 9 response to decl>ations1 ! 
bus9ess sectors involv$ 9 ! decl>ations 
:i* h be5 made1 & ! c\ntries involv$ 9  
su* decl>ations4  7,c7 ,! numb] ( new   
hires made s9ce ! prec$+ report ?r\gh ! 
au?orities describ$ "u subsection 7q71  
along ) summ>y /ati/ics1 position       
titles1 & associat$ pay grades = su*    
hires & a summ>y ( su* hires'           
responsibilities 9 adm9i/]+ ?is section4
  7#e7 ,classification2 availability (  
report  7,a7 ,classification ,all       
appropriate portions ( ! annual report  
requir$ by p>agraph 7#a7 may be         
classifi$4  7,b7 ,public availability ( 
unclassifi$ v]sion ,an unclassifi$      
v]sion ( ! report requir$ by p>agraph   
7#a71 z appropriate & consi/5t )        
safegu>d+ national security & privacy1  
%all be made available to ! public4     
,in=mation reg>d+ trade secrets or      
bus9ess confid5tial in=mation may be    
includ$ 9 ! classifi$ v]sion & may n be 
made available to ! public 9 !          

unclassifi$ v]sion4  7,c7 ,exceptions to
 ,fre$om ( ,in=mation ,act ,! exceptions
 to subsection 7a7 ( section #eeb (     
title #e1 ,unit$ ,/ates ,code1 provid$ =
 "u subsection 7b7 ( t section %all     
apply ) respect to ! report requir$ by  
p>agraph 7#a74  4  ,v ,res\rces1 special
 hir+ au?ority1 & outrea*  #eja4        
,c5tralization ( c]ta9 ,committee       
functions ,section #gba ( ! ,def5se     
,production ,act ( #aiej 7#ej ,u4,s4,c4 
#defe7 is am5d$ by add+ at ! end !      
foll[+3  7o7 ,c5tralization ( c]ta9     
committee functions  7#a7 ,9 g5]al ,!   
*airp]son1 9 consultation ) !           
,committee1 may c5tralize c]ta9         
functions ( ! ,committee )9 ! ,dep>tm5t 
( ! ,treasury = ! purpose ( enhanc+     
int]ag5cy coord9ation & collaboration 9 
c>ry+ out ! functions ( ! ,committee "u 
?is section4  7#b7 ,rule ( con/ruction  
,no?+ 9 ?is subsection %all be con/ru$ z
 limit+ ! au?ority ( any dep>tm5t or    
ag5cy repres5t$ on ! ,committee to      
repres5t its own int]e/s be=e !         

,committee4  4  #ejb4 ,,cfius res\rce   
ne$s  7a7 ,unifi$ budget reque/ ,section
 #gba ( ! ,def5se ,production ,act (    
#aiej 7#ej ,u4,s4,c4 #defe71 z am5d$ by 
section #eja1 is fur!r am5d$ by add+ at 
! end ! foll[+3  7p7 ,unifi$ budget     
reque/  7#a7 ,9 g5]al ,! ,presid5t may  
include1 9 ! budget ( ! ,dep>tm5t ( !   
,treasury = a fiscal ye> 7z submitt$ to 
,congress ) ! budget ( ! ,presid5t "u   
section #aaje7;a7 ( title #ca1 ,unit$   
,/ates ,code71 a unifi$ reque/ = fund+ (
 all op]ations "u ?is section conduct$  
by all ( ! dep>tm5ts & ag5cies repres5t$
 on ! ,committee4  7#b7 ,=m ( budget    
reque/ ,a unifi$ reque/ "u p>agraph 7#a7
 %all be detail$ & include ! am\nts &   
/aff+ levels reque/$ = ea* dep>tm5t or  
ag5cy repres5t$ on ! ,committee to c>ry 
out ! functions ( t dep>tm5t or ag5cy "u
 ?is section4  4  7b7 ,annual sp5d+ plan
 ,n lat] ?an #ij days foll[+ ! date (   
enactm5t ( ?is ,act1 & annually !reaft]1
 ! *airp]son ( ! ,committee on ,=eign   
,inve/m5t 9 ! ,unit$ ,/ates %all        

transmit to ! ,committees on            
,appropriations & ,f9ancial ,s]vices ( !
 ,h\se ( ,repres5tatives & ! ,committees
 on ,appropriations & ,bank+1 ,h\s+1 &  
,urban ,affairs ( ! ,s5ate a detail$    
sp5d+ plan to exp$iti\sly meet !        
requirem5ts ( subsections 7b71 7l71 &   
7m7 ( section #gba ( ! ,def5se          
,production ,act ( #aiej1 z am5d$ by ?is
 ,act1 includ+ e/imat$ exp5ditures &    
/aff+ levels requir$ by op]ations ( !   
,committee = n less ?an ! foll[+ fiscal 
ye> at ea* ( ! ,committee's memb]       
ag5cies4  7c7 ,waiv] ,! *airp]son may   
waive ! report+ requirem5t "u subsection
 7b7 ) respect to a fiscal ye> = :i* a  
unifi$ budget reque/ describ$ "u section
 #gba7p7 ( ! ,def5se ,production ,act ( 
#aiej has be5 submitt$4  7d7 ,special   
hir+ au?ority ,section #gba ( ! ,def5se 
,production ,act ( #aiej 7#ej ,u4,s4,c4 
#defe71 z am5d$ by subsection 7a71 is   
fur!r am5d$ by add+ at ! end ! foll[+3  
7q7 ,special hir+ au?ority ,! heads ( ! 
dep>tm5ts & ag5cies repres5t$ on !      

,committee may appo9t1 )\t reg>d to !   
provisions ( sections #ccji ?r\gh #ccah 
( title #e1 ,unit$ ,/ates ,code1        
c&idates directly to positions 9 !      
competitive s]vice 7z def9$ 9 section   
#bajb ( t title7 9 _! respective        
dep>tm5ts & ag5cies to adm9i/] ?is      
section4  4  7e7 ,te/imony requir$      
,section #gba ( ! ,def5se ,production   
,act ( #aiej 7#ej ,u4,s4,c4 #defe71 z   
am5d$ by subsection 7d71 is fur!r am5d$ 
by add+ at ! end ! foll[+3  7r7         
,te/imony  7#a7 ,9 g5]al ,aft] submitt+ 
! unifi$ budget reque/ describ$ "u      
subsection 7p71 or ! sp5d+ plan describ$
 "u section #ejb ( ! ,=eign ,inve/m5t   
,risk ,review ,mod]nization ,act (      
#bjah1 z ! case may be1 b n lat] ?an    
,m>* #ca ( ea* ye>1 ! *airp]son1 or !   
*airp]son's designee1 %all appe> be=e ! 
,committee on ,f9ancial ,s]vices ( !    
,h\se ( ,repres5tatives & pres5t        
te/imony on--  7,a7 anticipat$ res\rces 
necess>y = op]ations ( ! ,committee 9 ! 
foll[+ fiscal ye> at ea* ( !            

,committee's memb] ag5cies2  7,b7 !     
adequacy ( appropriations = ! ,committee
 9 ! curr5t & ! previ\s fiscal ye> to-- 
7i7 ensure t ?or\gh reviews &           
inve/igations are complet$ z exp$iti\sly
 z possible2  7ii7 monitor & en=ce      
mitigation agreem5ts2 &  7iii7 id5tify  
cov]$ transactions = :i* a notice "u    
clause 7i7 ( subsection 7b77#a77;,c7 or 
a decl>ation "u clause 7v7 ( subsection 
7b77#a77;,c7 0 n submitt$ to !          
,committee2 &  7,c7 managem5t ef=ts to  
/r5g!n ! ability ( ! ,committee to meet 
! requirem5ts ( ?is section4  7#b7      
,sunset ,?is subsection %all h no =ce or
 effect on ! date t is five ye>s foll[+ 
! date ( enactm5t ( ! ,=eign ,inve/m5t  
,risk ,review ,mod]nization ,act (      
#bjah4  4  #ejc4 ,,cfius outrea* ,n lat]
 ?an #ahj days aft] ! date ( enactm5t ( 
?is ,act1 & e ye> !reaft] = five ye>s1 !
 *airp]son ( ! ,committee on ,=eign     
,inve/m5t 9 ! ,unit$ ,/ates 7,,cfius71  
or ! *airp]son's designee1 %all brief ! 
,committee on ,f9ancial ,s]vices ( !    

,h\se ( ,repres5tatives & ! ,committee  
on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! 
,s5ate on activities ( ,,cfius und]tak5 
9 ord] to--  7#a7 educate ! bus9ess     
community1 ) a p>ticul> focus on !      
te*nology sector & o!r sectors (        
importance to national security1 on !   
goals & op]ations ( ,,cfius2 &  7#b7    
dissem9ate to ! gov]nm5ts ( ,unit$      
,/ates allies be/ practices ( ,,cfius   
t-- 7,a7 /r5g!n national security       
reviews ( relevant inve/m5t             
transactions2  7,b7 exp$ite su* reviews 
:5 appropriate2 &  7,c7 promote op5ness 
to =eign inve/m5t1 consi/5t ) national  
security consid]ations4  ,,vi           
,miscellane\s ,,firrma provisions  #fja4
 ,con=m+ am5dm5t ,section               
#gba7;d77#d77;,a7 ( ! ,def5se           
,production ,act ( #aiej 7#ej ,u4,s4,c4 
#defe7;d77#d77;,a77 is am5d$ by /rik+ ! 
=eign int]e/ ex]cis+ control & ins]t+ a 
=eign p]son t w\ld acquire an int]e/ 9 a
 ,unit$ ,/ates bus9ess or its assets z a
 result ( ! cov]$ transaction4  #fjb4   

,regulatory c]ta9ty = ,unit$ ,/ates     
bus9esses ,section #gba ( ! ,def5se     
,production ,act ( #aiej 7#ej ,u4,s4,c4 
#defe71 z am5d$ by section #ejb1 is     
fur!r am5d$ by add+ at ! end ! foll[+3  
7s7 ,regulatory c]ta9ty = ,unit$ ,/ates 
bus9esses ,) respect to mitigat+ a      
national security risk t results f a    
=eign p]son's inve/m5t 91 or jo9t v5ture
 )1 a ,unit$ ,/ates bus9ess1 a memb]    
ag5cy ( ! ,committee may n prescribe or 
implem5t regulations to require dive/m5t
 by1 or (1 ! ,unit$ ,/ates bus9ess1     
unless--  7#a7 ! regulations are        
prescrib$ "u ?is section or pursuant to 
au?orities ( ! ,presid5t "u !           
,int]national ,em]g5cy ,economic ,p[]s  
,act2 or  7#b7 ! ,presid5t reports to   
,congress 9 writ+ t ! regulations-- 7,a7
 are1 :]ev] applicable1 consi/5t )      
regulations prescrib$ "u ?is section1   
includ+ any su* regulations p]ta9+ to-- 
7i7 =eign control or influ5ce ov] a     
,unit$ ,/ates bus9ess2  7ii7 !          
id5tification ( em]g+1 f\ndational1 or  

o!r critical te*nologies2 &  7iii7      
confid5tiality requirem5ts ) respect to 
in=mation & docum5t>y mat]ial reg>d+    
,unit$ ,/ates bus9esses2 &  7,b7 9 !    
case ( regulations prescrib$ or f9aliz$ 
foll[+ ! effective date ( ?is           
subsection1 7 prescrib$ 9 consultation )
 ! *airp]son ( ! ,committee & ) ! head (
 any memb] ag5cy det]m9$ by ! ,presid5t 
to be affect$ by ! regulations4  4      
,,vii ,common ,s5se ,cr$it ,union       
,capital ,relief  #gja4 ,delay 9        
effective date ,not)/&+ any effective   
date set =? 9 ! rule issu$ by !         
,national ,cr$it ,union ,adm9i/ration   
titl$ ,risk-,bas$ ,capital 7publi%$ at  
#hj ,f$4 ,reg4 #fffbf 7,octob] #bi1     
#bjae771 su* f9al rule %all take effect 
on ,janu>y #a1 #bjba4  ,,viii ,export   
,control ,re=m  #hja4 ,%ort title  ,?is 
title may be cit$ z ! ,export ,control  
,re=m ,act ( #bjah4  #hjb4 ,def9itions  
,9 ?is title3  7#a7 ,controll$ ,! t]m   
controll$ means ! export1 reexport1 or  
transf] ( an item subject to !          

jurisdiction ( ! ,unit$ ,/ates "u       
subtitle ,a4  7#b7 ,dual-use ,! t]m     
dual-use1 ) respect to an item1 means ! 
item has civilian applications &        
milit>y1 t]rorism1 weapons ( mass       
de/ruction1 or law-en=cem5t-relat$      
applications4  7#c7 ,export ,! t]m      
export1 ) respect to an item subject to 
controls "u subtitle ,a1 includes-- 7,a7
 ! %ipm5t or transmission ( ! item out (
 ! ,unit$ ,/ates1 includ+ ! s5d+ or tak+
 ( ! item out ( ! ,unit$ ,/ates1 9 any  
mann]2 &  7,b7 ! release or transf] (   
te*nology or s\rce code relat+ to ! item
 to a =eign p]son 9 ! ,unit$ ,/ates4    
7#d7 ,export adm9i/ration regulations ,!
 t]m ,export ,adm9i/ration ,regulations 
means-- 7,a7 ! ,export ,adm9i/ration    
,regulations z promulgat$1 ma9ta9$1 &   
am5d$ "u ! au?ority ( ! ,int]national   
,em]g5cy ,economic ,p[]s ,act & codifi$1
 z ( ! date ( ! enactm5t ( ?is ,act1 9  
sub*apt] ,c ( *apt] ,,vii ( title #ae1  
,code ( ,f$]al ,regulations2 or  7,b7   
regulations t are promulgat$1 ma9ta9$1 &

 am5d$ "u ! au?ority ( subtitle ,a on or
 aft] ! date ( ! enactm5t ( ?is ,act4   
7#e7 ,=eign p]son ,! t]m =eign p]son    
means a p]son t is n a ,unit$ ,/ates    
p]son4  7#f7 ,item ,! t]m item means a  
commodity1 s(tw>e1 or te*nology4  7#g7  
,p]son ,! t]m p]son means-- 7,a7 a      
natural p]son2  7,b7 a corporation1     
bus9ess association1 p>tn]%ip1 society1 
tru/1 f9ancial in/itution1 insur]1      
und]writ]1 gu>antor1 & any o!r bus9ess  
organization1 any o!r nongov]nm5tal     
entity1 organization1 or gr\p1 or any   
gov]nm5t or ag5cy !re(2 &  7,c7 any     
successor to any entity describ$ 9      
subp>agraph 7,b74  7#h7 ,reexport ,! t]m
 reexport1 ) respect to an item subject 
to controls "u subtitle ,a1 includes--  
7,a7 ! %ipm5t or transmission ( ! item f
 a =eign c\ntry to ano!r =eign c\ntry1  
includ+ ! s5d+ or tak+ ( ! item f !     
=eign c\ntry to ! o!r =eign c\ntry1 9   
any mann]2 &  7,b7 ! release or transf] 
( te*nology or s\rce code relat+ to !   
item to a =eign p]son outside ! ,unit$  

,/ates4  7#i7 ,secret>y ,except z       
o!rwise provid$1 ! t]m ,secret>y means !
 ,secret>y ( ,comm]ce4  7#aj7 ,te*nology
 ,! t]m te*nology includes f\ndational  
in=mation & in=mation & "k-h[ necess>y =
 ! developm5t 7at all /ages prior to    
s]ial production71 production1 use1     
op]ation1 in/allation1 ma9t5ance1       
repair1 ov]haul or refurbi%+ ( an item4 
7#aa7 ,transf] ,! t]m transf]1 ) respect
 to an item subject to controls "u title
 ,i1 means a *ange 9 ! end-use or end   
us] ( ! item )9 ! same =eign c\ntry4    
7#ab7 ,unit$ ,/ates ,! t]m ,unit$ ,/ates
 means ! sev]al ,/ates1 ! ,di/rict (    
,columbia1 ! ,commonweal? ( ,pu]to      
,rico1 ! ,commonweal? ( ! ,nor!rn       
,m>iana ,isl&s1 ,am]ican ,samoa1 ,guam1 
! ,unit$ ,/ates ,virg9 ,isl&s1 & any o!r
 t]ritory or possession ( ! ,unit$      
,/ates4  7#ac7 ,unit$ ,/ates p]son ,!   
t]m ,unit$ ,/ates p]son means-- 7,a7 =  
purposes ( subtitles ,a & ,c--  7i7 any 
individual :o is a citiz5 or national ( 
! ,unit$ ,/ates or :o is an individual  

describ$ 9 subp>agraph 7,b7 ( section   
#bgd;,b7a77#c7 ( ! ,immigration &       
,nationality ,act 7#h ,u4,s4,c4         
#acbd;b7a77#c772  7ii7 a corporation or 
o!r legal entity :i* is organiz$ "u !   
laws ( ! ,unit$ ,/ates1 any ,/ate or    
t]ritory !re(1 or ! ,di/rict (          
,columbia2 &  7iii7 any p]son 9 ! ,unit$
 ,/ates2 &  7,b7 = purposes ( subtitle  
,b1 any ,unit$ ,/ates resid5t or        
national 7o!r ?an an individual resid5t 
outside ! ,unit$ ,/ates & employ$ by o!r
 ?an a ,unit$ ,/ates p]son71 any dome/ic
 conc]n 7includ+ any p]man5t dome/ic    
e/abli%m5t ( any =eign conc]n7 & any    
=eign subsidi>y or affiliate 7includ+   
any p]man5t =eign e/abli%m5t7 ( any     
dome/ic conc]n :i* is controll$ 9 fact  
by su* dome/ic conc]n1 z det]m9$ "u     
regulations by ! ,secret>y4  7#ad7      
,weapons ( mass de/ruction ,! t]m       
weapons ( mass de/ruction means nucle>1 
radiological1 *emical1 & biological     
weapons & deliv]y sy/ems = su* weapons4 
,a ,au?ority & adm9i/ration ( controls  

#haa4 ,%ort title ,?is subtitle may be  
cit$ z ! ,export ,controls ,act ( #bjah4
  #hab4 ,/atem5t ( policy ,! foll[+ is !
 policy ( ! ,unit$ ,/ates3  7#a7 ,!     
national security & =eign policy ( !    
,unit$ ,/ates require t ! export1       
reexport1 & transf] ( items1 & specific 
activities ( ,unit$ ,/ates p]sons1 :]ev]
 locat$1 be controll$ = ! foll[+        
purposes3  7,a7 ,to control ! release ( 
items = use 9-- 7i7 ! prolif]ation (    
weapons ( mass de/ruction or (          
conv5tional weapons2  7ii7 ! acquisition
 ( de/abiliz+ numb]s or types (         
conv5tional weapons2  7iii7 acts (      
t]rorism2  7iv7 milit>y programs t c\ld 
pose a ?reat to ! security ( ! ,unit$   
,/ates or its allies2 or  7v7 activities
 und]tak5 specifically to cause         
significant int]f]5ce ) or disruption ( 
critical infra/ructure4  7,b7 ,to       
pres]ve ! qualitative milit>y sup]iority
 ( ! ,unit$ ,/ates4  7,c7 ,to /r5g!n !  
,unit$ ,/ates indu/rial base4  7,d7 ,to 
c>ry out ! =eign policy ( ! ,unit$      

,/ates1 includ+ ! protection ( human    
rights & ! promotion ( democracy4  7,e7 
,to c>ry out obligations & commitm5ts "u
 int]national agreem5ts & arrangem5ts1  
includ+ multilat]al export control      
regimes4  7,f7 ,to facilitate milit>y   
int]op]ability betwe5 ! ,unit$ ,/ates & 
its ,nor? ,atlantic ,treaty             
,organization 7,,nato7 & o!r close      
allies4  7,g7 ,to ensure national       
security controls are tailor$ to focus  
on ^? core te*nologies & o!r items t are
 capable ( be+ us$ to pose a s]i\s      
national security ?reat to ! ,unit$     
,/ates4  7#b7 ,! national security ( !  
,unit$ ,/ates requires t ! ,unit$ ,/ates
 ma9ta9 its lead]%ip 9 ! sci5ce1        
te*nology1 eng9e]+1 & manufactur+       
sectors1 includ+ f\ndational te*nology t
 is ess5tial to innovation4 ,su*        
lead]%ip requires t ,unit$ ,/ates p]sons
 are competitive 9 global m>kets4 ,!    
impact ( ! implem5tation ( ?is subtitle 
on su* lead]%ip & competitiv5ess mu/ be 
evaluat$ on an ongo+ basis & appli$ 9   

impos+ controls "u sections #hac & #had 
to avoid negatively affect+ su*         
lead]%ip4  7#c7 ,! national security &  
=eign policy ( ! ,unit$ ,/ates require t
 ! ,unit$ ,/ates p>ticipate 9           
multilat]al organizations & agreem5ts   
reg>d+ export controls on items t are   
consi/5t ) ! policy ( ! ,unit$ ,/ates1 &
 take all ! necess>y /eps to secure !   
adoption & consi/5t en=cem5t1 by !      
gov]nm5ts ( su* c\ntries1 ( export      
controls on items t are consi/5t ) su*  
policy4  7#d7 ,export controls %\ld be  
fully coord9at$ ) ! multilat]al export  
control regimes4 ,export controls t are 
multilat]al are mo/ effective1 & %\ld be
 tailor$ to focus on ^? core te*nologies
 & o!r items t are capable ( be+ us$ to 
pose a s]i\s national security ?reat to 
! ,unit$ ,/ates & its allies4  7#e7     
,export controls appli$ unilat]ally to  
items widely available f =eign s\rces   
g5]ally are less effective 9 prev5t+    
end-us]s f acquir+ ^? items4  7#f7 ,!   
effective adm9i/ration ( export controls

 requires a cle> und]/&+ bo? inside &   
outside ! ,unit$ ,/ates ,gov]nm5t ( :i* 
te*nologies & o!r items are controll$ & 
an effici5t process %\ld be creat$ to   
update ! controls1 su* z by remov+ &    
add+ te*nologies & o!r items4  7#g7 ,!  
export control sy/em mu/ ensure t x is  
transp>5t1 pr$ictable1 & timely1 has !  
flexibility to be adapt$ to address new 
?reats 9 ! future1 & all[s seamless     
access to & %>+ ( export control        
in=mation among all relevant ,unit$     
,/ates national security & =eign policy 
ag5cies4  7#h7 ,implem5tation & en=cem5t
 ( ,unit$ ,/ates export controls require
 robu/ capabilities 9 monitor+1         
intellig5ce1 & inve/igation1 appropriate
 p5alties = violations1 & ! ability to  
swiftly int]dict unapprov$ transf]s4    
7#i7 ,export controls %\ld be balanc$ ) 
,unit$ ,/ates c\nt]t]rorism1 in=mation  
security1 & cyb]-security policies to   
ensure ! ability to export1 reexport1 & 
transf] te*nology & o!r items 9 support 
( c\nt]t]rorism1 critical infra/ructure1

 & o!r homel& security priorities1 :ile 
effectively prev5t+ malici\s cyb]       
t]rori/s f obta9+ items t ?reat5 !      
,unit$ ,/ates & its int]e/s1 includ+ !  
protection ( & safety ( ,unit$ ,/ates   
citiz5s abroad4  7#aj7 ,export controls 
complem5t & are a critical elem5t ( !   
national security policies und]ly+ !    
laws & regulations gov]n+ =eign direct  
inve/m5t 9 ! ,unit$ ,/ates1 includ+     
controll+ ! transf] ( critical          
te*nologies to c]ta9 =eign p]sons4 ,?us1
 ! ,presid5t1 9 close coord9ation ) !   
,dep>tm5t ( ,comm]ce1 ! ,dep>tm5t (     
,def5se1 ! ,dep>tm5t ( ,/ate1 !         
,dep>tm5t ( ,en]gy1 & o!r ag5cies       
responsible = export controls1 %\ld h a 
regul> & robu/ process to id5tify !     
em]g+ & o!r types ( critical te*nologies
 ( conc]n & regulate _! release to =eign
 p]sons z w>rant$ reg>dless ( ! nature (
 ! und]ly+ transaction4 ,su*            
id5tification ef=ts %\ld draw ^u !      
res\rces & exp]tise ( all relevant p>ts 
( ! ,unit$ ,/ates ,gov]nm5t1 indu/ry1 & 

academia4 ,^! ef=ts %\ld be 9 addition  
to traditional ef=ts to mod]nize &      
update ! li/s ( controll$ items "u !    
multilat]al export control regimes4     
7#aa7 ,! au?ority "u ?is subtitle may be
 ex]cis$ only 9 fur!rance ( all ( !     
objectives set =? 9 p>agraphs 7#a7 ?r\gh
 7#aj74  #hac4 ,au?ority ( ! ,presid5t  
7a7 ,au?ority ,9 ord] to c>ry out !     
policy set =? 9 p>agraphs 7#a7 ?r\gh    
7#aj7 ( section #hab1 ! ,presid5t %all  
control--  7#a7 ! export1 reexport1 &   
transf] ( items subject to !            
jurisdiction ( ! ,unit$ ,/ates1 :e!r by 
,unit$ ,/ates p]sons or by =eign p]sons2
 &  7#b7 ! activities ( ,unit$ ,/ates   
p]sons1 :]ev] locat$1 relat+ to         
specific-- 7,a7 nucle> explosive        
devices2  7,b7 missiles2  7,c7 *emical  
or biological weapons2  7,d7 :ole plants
 = *emical weapons precursors2  7,e7    
=eign m>itime nucle> projects2 &  7,f7  
=eign milit>y intellig5ce s]vices4  7b7 
,requirem5ts ,9 ex]cis+ au?ority "u ?is 
subtitle1 ! ,presid5t %all impose       

controls to a*ieve ! foll[+ objectives3 
7#a7 ,to regulate ! export1 reexport1 & 
transf] ( items describ$ 9 subsection   
7a77#a7 ( ,unit$ ,/ates p]sons or =eign 
p]sons4  7#b7 ,to regulate ! activities 
describ$ 9 subsection 7a77#b7 ( ,unit$  
,/ates p]sons1 :]ev] locat$4  7#c7 ,to  
secure ! coop]ation ( o!r gov]nm5ts &   
multilat]al organizations to impose     
control sy/ems t are consi/5t1 to !     
ext5t possible1 ) ! controls impos$ "u  
subsection 7a74  7#d7 ,to ma9ta9 !      
lead]%ip ( ! ,unit$ ,/ates 9 sci5ce1    
eng9e]+1 te*nology rese>* & developm5t1 
manufactur+1 & f\ndational te*nology t  
is ess5tial to innovation4  7#e7 ,to    
protect ,unit$ ,/ates te*nological      
advances by prohibit+ unau?oriz$        
te*nology transf]s to =eign p]sons 9 !  
,unit$ ,/ates or outside ! ,unit$       
,/ates1 p>ticul>ly ) respect to c\ntries
 t may pose a significant ?reat to !    
national security ( ! ,unit$ ,/ates4    
7#f7 ,to enhance ! viability ( comm]cial
 firms1 academic in/itutions1 & rese>*  

e/abli%m5ts1 & ma9ta9 ! skill$ work=ce (
 su* firms1 in/itutions1 & e/abli%m5ts1 
t are necess>y to pres]v+ ! lead]%ip ( !
 ,unit$ ,/ates describ$ 9 p>agraph 7#d74
  7#g7 ,to /r5g!n ! ,unit$ ,/ates       
indu/rial base1 bo? ) respect to curr5t 
& future def5se requirem5ts4  7#h7 ,to  
en=ce ! controls ?r\gh means su* z      
regulations1 requirem5ts = compliance1  
li/s ( controll$ items1 li/s ( =eign    
p]sons :o ?reat5 ! national security or 
=eign policy ( ! ,unit$ ,/ates1 &       
guidance 9 a =m t facilitates compliance
 by ,unit$ ,/ates p]sons & =eign p]sons1
 9 p>ticul> academic in/itutions1       
sci5tific & rese>* e/abli%m5ts1 & small-
 & m$ium-siz$ bus9esses4  7c7           
,application ( controls ,! ,presid5t    
%all impose controls ov] ! export1      
reexport1 or transf] ( items = purposes 
( ! objectives describ$ 9 subsections   
7b77#a7 or 7b77#b7 )\t reg>d to ! nature
 ( ! und]ly+ transaction or any         
circum/ances p]ta9+ to ! activity1      
includ+ :e!r su* export1 reexport1 or   

transf] occurs pursuant to a pur*ase    
ord] or o!r contract requirem5t1        
volunt>y decision1 int]-company         
arrangem5t1 m>ket+ ef=t1 or dur+ a jo9t 
v5ture1 jo9t developm5t agreem5t1 or    
simil> collaborative agreem5t4  #had4   
,additional au?orities  7a7 ,9 g5]al ,9 
c>ry+ out ?is subtitle1 ! ,presid5t     
%all-- 7#a7 e/abli% & ma9ta9 li/s       
publi%$ by ! ,secret>y ( items t are    
controll$ "u ?is subtitle2  7#b7 e/abli%
 & ma9ta9 li/s publi%$ by ! ,secret>y ( 
=eign p]sons & end-uses t are det]m9$ to
 be a ?reat to ! national security &    
=eign policy ( ! ,unit$ ,/ates pursuant 
to ! policy set =? 9 section            
#hab7a77;,a72  7#c7 prohibit unau?oriz$ 
exports1 reexports1 & transf]s (        
controll$ items1 includ+ to =eign p]sons
 9 ! ,unit$ ,/ates or outside ! ,unit$  
,/ates2  7#d7 re/rict exports1          
reexports1 & transf]s ( any controll$   
items to any =eign p]son or end-use li/$
 "u p>agraph 7#b72  7#e7 require lic5ses
 or o!r au?orizations1 z appropriate1 = 

exports1 reexports1 & transf]s (        
controll$ items1 includ+ impos+         
conditions or re/rictions on ,unit$     
,/ates p]sons & =eign p]sons ) respect  
to su* lic5ses or o!r au?orizations2    
7#f7 e/abli% a process by :i* a lic5se  
applicant may reque/ an assessm5t to    
det]m9e :e!r a =eign item is comp>able 9
 quality to an item controll$ "u ?is    
subtitle1 & is available 9 suffici5t    
quantities to r5d] ! ,unit$ ,/ates      
export control ( t item or ! d5ial ( a  
lic5se ineffective1 includ+ a me*anism  
to address t disp>ity2  7#g7 require    
measures = compliance ) ! export        
controls e/abli%$ "u ?is subtitle2  7#h7
 require & obta9 su* in=mation f ,unit$ 
,/ates p]sons & =eign p]sons z is       
necess>y to c>ry out ?is subtitle2  7#i7
 require1 z appropriate1 advance notice 
be=e an item is export$1 reexport$1 or  
transf]r$1 z an alt]native to requir+ a 
lic5se2  7#aj7 require1 to ! ext5t      
feasible1 id5tification ( items subject 
to controls "u ?is subtitle 9 ord] to   

facilitate ! en=cem5t ( su* controls2   
7#aa7 inspect1 se>*1 deta91 seize1 or   
impose tempor>y d5ial ord]s ) respect to
 items1 9 any =m1 t are subject to      
controls "u ?is subtitle1 or conveyances
 on :i* x is believ$ t !re are items t h
 be51 are be+1 or are ab\t to be        
export$1 reexport$1 or transf]r$ 9      
violation ( ?is subtitle2  7#ab7 monitor
 %ipm5ts1 or o!r means ( transf]2  7#ac7
 keep ! public fully appris$ ( *anges 9 
policy1 regulations1 & proc$ures        
e/abli%$ "u ?is subtitle2  7#ad7 appo9t 
te*nical advisory committees 9          
accordance ) ! ,f$]al ,advisory         
,committee ,act2  7#ae7 create1 z       
w>rant$1 exceptions to lic5s+           
requirem5ts 9 ord] to fur!r ! objectives
 ( ?is subtitle2  7#af7 e/abli% & ma9ta9
 processes to in=m p]sons1 ei!r         
individually by specific notice or ?r\gh
 am5dm5t to any regulation or ord] issu$
 "u ?is subtitle1 t a lic5se f ! ,bureau
 ( ,indu/ry & ,security ( ! ,dep>tm5t ( 
,comm]ce is requir$ to export2 &  7#ag7 

und]take any o!r action z is necess>y to
 c>ry out ?is subtitle t is n o!rwise   
prohibit$ by law4  7b7 ,relation%ip to  
,,ieepa ,! au?ority "u ?is subtitle may 
n be us$ to regulate or prohibit "u ?is 
subtitle ! export1 reexport1 or transf] 
( any item t may n be regulat$ or       
prohibit$ "u section #bjc7;b7 ( !       
,int]national ,em]g5cy ,economic ,p[]s  
,act 7#ej ,u4,s4,c4 #agjb7;b771 except  
to ! ext5t ! ,presid5t has made a       
det]m9ation necess>y to impose controls 
"u subp>agraph 7,a71 7,b71 or 7,c7 (    
p>agraph 7#b7 ( su* section4  7c7       
,c\ntries support+ int]national t]rorism
  7#a7 ,lic5se requirem5t  7,a7 ,9 g5]al
 ,a lic5se %all be requir$ = ! export1  
reexport1 or transf] ( items to a c\ntry
 if ! ,secret>y ( ,/ate has made !      
foll[+ det]m9ations3  7i7 ,! gov]nm5t ( 
su* c\ntry has repeat$ly provid$ support
 = acts ( int]national t]rorism4  7ii7  
,! export1 reexport1 or transf] ( su*   
items c\ld make a significant           
contribution to ! milit>y pot5tial ( su*

 c\ntry1 includ+ its milit>y logi/ics   
capability1 or c\ld enhance ! ability ( 
su* c\ntry to support acts (            
int]national t]rorism4  7,b7            
,det]m9ation "u o!r provisions ( law ,a 
det]m9ation ( ! ,secret>y ( ,/ate "u    
section #fbj;,a ( ! ,=eign ,assi/ance   
,act ( #aifa 7#bb ,u4,s4,c4 #bcga71     
section #dj ( ! ,arms ,export ,control  
,act 7#bb ,u4,s4,c4 #bghj71 or any o!r  
provision ( law t ! gov]nm5t ( a c\ntry 
describ$ 9 subp>agraph 7,a7 has         
repeat$ly provid$ support = acts (      
int]national t]rorism %all be deem$ to  
be a det]m9ation ) respect to su*       
gov]nm5t = purposes ( clause 7i7 (      
subp>agraph 7,a74  7#b7 ,notification to
 ,congress ,! ,secret>y ( ,/ate or !    
,secret>y ( ,comm]ce %all notify !      
,committee on ,=eign ,affairs ( ! ,h\se 
( ,repres5tatives & ! ,committee on     
,bank+1 ,h\s+1 & ,urban ,affairs & !    
,committee on ,=eign ,relations ( !     
,s5ate at lea/ #cj days be=e issu+ any  
lic5se requir$ by p>agraph 7#a74  7#c7  

,publication 9 ,f$]al ,regi/] ,ea*      
det]m9ation ( ! ,secret>y ( ,/ate "u    
p>agraph 7#a77;,a7 %all be publi%$ 9 !  
,f$]al ,regi/]1 except t ! ,secret>y (  
,/ate may exclude confid5tial in=mation 
& trade secrets conta9$ 9 su*           
det]m9ation4  7#d7 ,rescission (        
det]m9ation ,a det]m9ation ( ! ,secret>y
 ( ,/ate "u p>agraph 7#a77;,a7 may n be 
resc9d$ unless ! ,presid5t submits to ! 
,speak] ( ! ,h\se ( ,repres5tatives1 !  
*airman ( ! ,committee on ,=eign        
,affairs1 & ! *airman ( ! ,committee on 
,bank+1 ,h\s+1 & ,urban ,affairs & !    
*airman ( ! ,committee on ,=eign        
,relations ( ! ,s5ate--  7,a7 be=e !    
propos$ rescission w\ld take effect1 a  
report c]tify+ t-- 7i7 !re has be5 a    
fundam5tal *ange 9 ! lead]%ip & policies
 ( ! gov]nm5t ( ! c\ntry conc]n$2  7ii7 
t gov]nm5t is n support+ acts (         
int]national t]rorism2 &  7iii7 t       
gov]nm5t has provid$ assurances t x w n 
support acts ( int]national t]rorism 9 !
 future2 or  7,b7 at lea/ #ij days be=e 

! propos$ rescission w\ld take effect1 a
 report ju/ify+ ! rescission & c]tify+  
t--  7i7 ! gov]nm5t conc]n$ has n       
provid$ any support = acts int]national 
t]rorism dur+ ! prec$+ #bd-mon? p]iod2 &
  7ii7 ! gov]nm5t conc]n$ has provid$   
assurances t x w n support acts (       
int]national t]rorism 9 ! future4  7#e7 
,disapproval ( rescission ,no rescission
 "u p>agraph 7#d77;,b7 ( a det]m9ation  
"u p>agraph 7#a77;,a7 ) respect to !    
gov]nm5t ( a c\ntry may be made if      
,congress1 )9 #ij days aft] receipt ( a 
report "u p>agraph 7#d77;,b71 enacts a  
jo9t resolution describ$ 9 subsection   
7f77#b7 ( section #dj ( ! ,arms ,export 
,control ,act ) respect to a rescission 
"u subsection 7f77#a7 ( su* section )   
respect to ! gov]nm5t ( su* c\ntry4     
7#f7 ,notification & brief+ ,n lat]     
?an-- 7,a7 t5 days aft] initiat+ a      
review ( ! activities ( ! gov]nm5t ( !  
c\ntry conc]n$ )9 ! #bd-mon? p]iod      
ref]r$ to 9 p>agraph 7#d77;,b77i71 !    
,secret>y ( ,/ate %all notify !         

,committee on ,=eign ,affairs ( ! ,h\se 
( ,repres5tatives & ! ,committee on     
,=eign ,relations ( ! ,s5ate ( su*      
initiation2 &  7,b7 #bj days aft] !     
notification describ$ 9 p>agraph 7#a71 !
 ,secret>y ( ,/ate %all brief !         
congressional committees describ$ 9     
p>agraph 7#a7 on ! /atus ( su* review4  
7#g7 ,cont5ts ( notification ( lic5se ,!
 ,secret>y ( ,/ate %all include 9 !     
notification requir$ by p>agraph 7#b7-- 
7,a7 a detail$ description ( ! items to 
be (f]$1 includ+ a brief description ( !
 capabilities ( any item = :i* a lic5se 
to export1 reexport1 or transf] ! items 
is s\ght2  7,b7 ! reasons :y ! =eign    
c\ntry1 p]son1 or entity to :i* !       
export1 reexport1 or transf] is propos$ 
to be made has reque/$ ! items "u !     
export1 reexport1 or transf]1 & a       
description ( ! mann] 9 :i* su* c\ntry1 
p]son1 or entity int5ds to use su*      
items2  7,c7 ! reasons :y ! propos$     
export1 reexport1 or transf] is 9 !     
national int]e/ ( ! ,unit$ ,/ates2  7,d7

 an analysis ( ! impact ( ! propos$     
export1 reexport1 or transf] on !       
milit>y capabilities ( ! =eign c\ntry1  
p]son1 or entity to :i* su* transf] w\ld
 be made2  7,e7 an analysis ( ! mann] 9 
:i* ! propos$ export1 reexport1 or      
transf] w\ld affect ! relative milit>y  
/r5g?s ( c\ntries 9 ! region to :i* !   
items t are ! subject ( su* export1     
reexport1 or transf] w\ld be deliv]$ &  
:e!r o!r c\ntries 9 ! region h comp>able
 k9ds & am\nts ( items2 &  7,f7 an      
analysis ( ! impact ( ! propos$ export1 
reexport1 or transf] on ! relations ( ! 
,unit$ ,/ates ) ! c\ntries 9 ! region to
 :i* ! items t are ! subject ( su*      
export1 reexport1 or transf] w\ld be    
deliv]$4  7d7 ,enhanc$ controls  7#a7 ,9
 g5]al ,9 fur!rance ( section #hac7;a71 
! ,presid5t %all1 except to ! ext5t     
au?oriz$ by a /atute or regulation      
adm9i/]$ by a ,f$]al dep>tm5t or ag5cy  
o!r ?an ! ,dep>tm5t ( ,comm]ce1 require 
a ,unit$ ,/ates p]son1 :]ev] locat$1 to 
apply = & receive a lic5se f ! ,dep>tm5t

 ( ,comm]ce =--  7,a7 ! export1         
reexport1 or transf] ( items describ$ 9 
p>agraph 7#b71 includ+ items t are n    
subject to control "u ?is subtitle2 &   
7,b7 o!r activities t may support !     
design1 developm5t1 production1 use1    
op]ation1 in/allation1 ma9t5ance1       
repair1 ov]haul1 or refurbi%+ (1 or = ! 
p]=mance ( s]vices relat+ to1 any su*   
items4  7#b7 ,items describ$ ,! items   
describ$ 9 ?is p>agraph include-- 7,a7  
nucle> explosive devices2  7,b7         
missiles2  7,c7 *emical or biological   
weapons2  7,d7 :ole plants = *emical    
weapons precursors2 &  7,e7 =eign       
m>itime nucle> projects t w\ld pose a   
risk to ! national security or =eign    
policy ( ! ,unit$ ,/ates4  7e7          
,additional prohibitions ,! ,secret>y   
may in=m ,unit$ ,/ates p]sons1 ei!r     
individually by specific notice or ?r\gh
 am5dm5t to any regulation or ord] issu$
 "u ?is subtitle1 t a lic5se f ! ,bureau
 ( ,indu/ry & ,security ( ! ,dep>tm5t ( 
,comm]ce is requir$ to engage 9 any     

activity if ! activity involves ! types 
( movem5t1 s]vice1 or support describ$ 9
 subsection 7d74 ,! abs5ce ( any su*    
notification does n excuse ! ,unit$     
,/ates p]son f compliance ) ! lic5se    
requirem5ts ( subsection 7d71 or any    
regulation or ord] issu$ "u ?is         
subtitle4  7f7 ,lic5se review /&>ds ,!  
,secret>y %all d5y an application to    
engage 9 any activity describ$ 9        
subsection 7d7 if ! activity w\ld make a
 mat]ial contribution to any ( ! items  
describ$ 9 subsection 7d77#b74  #hae4   
,adm9i/ration ( export controls  7a7 ,9 
g5]al ,! ,presid5t %all delegate to !   
,secret>y ( ,comm]ce1 ! ,secret>y (     
,def5se1 ! ,secret>y ( ,/ate1 !         
,secret>y ( ,en]gy1 &1 z appropriate1 ! 
,director ( ,national ,intellig5ce & !  
heads ( o!r appropriate ,f$]al dep>tm5ts
 & ag5cies1 ! au?ority to c>ry out !    
purposes set =? 9 subsection 7b74  7b7  
,purposes  7#a7 ,9 g5]al ,! purpose ( ! 
delegations ( au?ority pursuant to      
subsection 7a7 are-- 7,a7 to advise !   

,presid5t ) respect to--  7i7 id5tify+  
specific ?reats to ! national security &
 =eign policy t ! au?ority ( ?is        
subtitle may be us$ to address2 &  7ii7 
ex]cis+ ! au?ority "u ?is subtitle to   
implem5t policies1 regulations1         
proc$ures1 & actions t are necess>y to  
effectively c\nt]act ^? ?reats2  7,b7 to
 review & approve-- 7i7 crit]ia =       
includ+ items on1 & remov+ su* an item  
f1 a li/ ( controll$ items e/abli%$ "u  
?is subtitle2  7ii7 an int]ag5cy        
proc$ure = compil+ & am5d+ any li/      
describ$ 9 clause 7i72  7iii7 crit]ia = 
includ+ a p]son on a li/ ( p]sons to :om
 exports1 reexports1 & transf]s ( items 
are prohibit$ or re/rict$ "u ?is        
subtitle2  7iv7 /&>ds = compliance by   
p]sons subject to controls "u ?is       
subtitle2 &  7v7 policies & proc$ures = 
! end-use monitor+ ( exports1 reexports1
 & transf]s ( items controll$ "u ?is    
subtitle2  7,c7 to obta9 indep5d5t      
evaluations1 includ+ f ,inspectors      
,g5]al ( ! relevant dep>tm5ts or        

ag5cies1 on a p]iodic basis on !        
effectiv5ess ( ! implem5tation ( ?is    
subtitle 9 c>ry+ out ! policy set =? 9  
section #hab2 &  7,d7 to b5efit f !     
inh]5t equities1 exp]i5ce1 &            
capabilities ( ! ,f$]al (ficials        
describ$ 9 subsection 7a71 includ+--    
7i7 ! views ( ! ,dep>tm5t ( ,def5se )   
respect to ! national security          
implications ( a p>ticul> control or    
decision2  7ii7 ! views ( ! ,dep>tm5t ( 
,/ate ) respect to ! =eign policy       
implications ( a p>ticul> control or    
decision2  7iii7 ! views ( ! ,dep>tm5t (
 ,en]gy ) respect to ! implications =   
nucle> prolif]ation ( a p>ticul> control
 or decision2 &  7iv7 ! views ( !       
,dep>tm5t ( ,comm]ce ) respect to !     
adm9i/ration ( an effici5t1 coh]5t1     
reliable1 en=ceable1 & pr$ictable export
 control sy/em1 & ! resolution ( compet+
 views or policy objectives describ$ 9  
section #hab4  7#b7 ,au?ority to seek   
in=mation ,! ,f$]al (ficials describ$ 9 
subsection 7a7 may1 9 c>ry+ out !       

purposes set =? 9 p>agraph 7#a71 seek   
in=mation & advice f exp]ts :o are n    
(fic]s or employees ( ! ,f$]al          
,gov]nm5t4  7#c7 ,transmittal &         
implem5tation ( evaluations ,! results (
 ! indep5d5t evaluations conduct$       
pursuant to p>agraph 7#a77;,c7 %all be  
transmitt$ to ! ,presid5t & ! ,congress1
 9 classifi$ =m if necess>y4 ,subject to
 ! delegation ( au?ority by ! ,presid5t1
 ! ,f$]al (ficials describ$ 9 subsection
 7a7 %all det]m9e1 direct1 & ensure t   
improvem5ts recomm5d$ 9 ! evaluations   
are implem5t$4  7c7 ,s5se ( ,congress ,x
 is ! s5se ( ,congress t ! adm9i/ration 
( export controls "u ?is subtitle %\ld  
be consi/5t ) ! proc$ures relat+ to     
export lic5se applications describ$ 9   
,executive ,ord] #abiha 7#aiie74  #haf4 
,control li/s ,! ,presid5t %all1        
pursuant to ! delegation ( au?ority 9   
section #hae1 ensure t-- 7#a7 a process 
is e/abli%$ = regul> int]ag5cy review ( 
ea* li/ e/abli%$ "u section             
#had7;a77#a71 t pursuant to su* review !

 ,secret>y regul>ly updates su* li/s to 
ensure t new items 7includ+ em]g+       
critical te*nologies7 are appropriately 
controll$1 & t ! level ( control ( items
 on ! li/s are adju/$ z conditions      
*ange2  7#b7 in=mation & exp]tise are   
obta9$ f (fic]s & employees f relevant  
,f$]al dep>tm5ts1 ag5cies1 & (fices &   
p]sons outside ! ,f$]al ,gov]nm5t :o h  
te*nical exp]tise1 ) respect to !       
*>act]i/ics ( ! items consid]$ = ea* li/
 e/abli%$ "u section #had7;a77#a7 & !   
effect ( controll+ ! items on address+ !
 policy set =? 9 section #hab2  7#c7 ea*
 li/ e/abli%$ "u section #had7;a77#a7   
appropriately id5tifies ea* entry t has 
be5 includ$ by virtue ( ! p>ticipation (
 ! ,unit$ ,/ates 9 a multilat]al regime1
 organization1 or gr\p ! purpose ( :i*  
is consi/5t ) & supports ! policy ( !   
,unit$ ,/ates "u ?is subtitle relat+ to 
! control ( exports1 reexports1 &       
transf]s ( items2 &  7#d7 ea* li/       
e/abli%$ "u section #had7;a77#a7 is     
publi%$ by ! ,secret>y 9 a =m t         

facilitates compliance ) x & relat$     
requirem5ts1 p>ticul>ly by small- &     
m$ium-siz$ bus9esses1 & academic        
in/itutions4  #hag4 ,lic5s+  7a7 ,9     
g5]al ,! ,presid5t %all1 pursuant to !  
delegation ( au?ority 9 section #hae1   
e/abli% a proc$ure = ! ,dep>tm5t (      
,comm]ce to lic5se or o!rwise au?orize !
 export1 reexport1 & transf] ( items    
controll$ "u ?is subtitle 9 ord] to c>ry
 out ! policy set =? 9 section #hab & ! 
requirem5ts set =? 9 section #hac7;b74  
,! proc$ure %all ensure t--  7#a7 lic5se
 applications1 o!r reque/s =            
au?orization1 & relat$ dispute          
resolution proc$ures are consid]$ &     
decisions made ) ! p>ticipation (       
appropriate dep>tm5ts1 ag5cies1 & (fices
 t h delegat$ functions "u ?is subtitle2
 &  7#b7 lic5s+ decisions are made 9 an 
exp$iti\s mann]1 ) transp>5cy to        
applicants on ! /atus ( lic5se & o!r    
au?orization process+ & ! reason = d5y+ 
any lic5se or reque/ = au?orization4    
7b7 ,s5se ( ,congress ,x is ! s5se (    

,congress t ! ,presid5t %\ld make be/   
ef=ts to ensure t an accurate1 consi/5t1
 & timely evaluation & process+ (       
lic5ses or o!r reque/s = au?orization to
 export1 reexport1 or transf] items     
controll$ "u ?is subtitle is accompli%$ 
)9 #cj days f ! date ( su* lic5se       
reque/4  7c7 ,fees ,no fee may be *>g$ 9
 connection ) ! submission1 process+1 or
 consid]ation ( any application = a     
lic5se or o!r au?orization or o!r reque/
 made 9 connection ) any regulation 9   
effect "u ! au?ority ( ?is subtitle4    
#hah4 ,compliance assi/ance  7a7 ,sy/em 
= seek+ assi/ance ,! ,presid5t may      
au?orize ! ,secret>y to e/abli% a sy/em 
to provide ,unit$ ,/ates p]sons )       
assi/ance 9 comply+ ) ?is subtitle1 :i* 
may include a me*anism = provid+        
in=mation1 9 classifi$ =m z appropriate1
 :o are pot5tial cu/om]s1 suppli]s1 or  
bus9ess p>tn]s ) respect to items       
controll$ "u ?is subtitle1 9 ord] to    
fur!r ensure ! prev5tion ( ! export1    
reexport1 or transf] ( items t may pose 

a ?reat to ! national security or =eign 
policy ( ! ,unit$ ,/ates4  7b7 ,security
 cle>ances ,9 ord] to c>ry out          
subsection 7a71 ! ,presid5t may issue   
appropriate security cle>ances to p]sons
 describ$ 9 t subsection :o are         
responsible = comply+ ) ?is subtitle4   
7c7 ,assi/ance = c]ta9 bus9esses  7#a7  
,9 g5]al ,n lat] ?an #abj days aft] !   
date ( ! enactm5t ( ?is ,act1 !         
,presid5t %all develop & submit to      
,congress a plan to assi/ small- &      
m$ium-siz$ ,unit$ ,/ates 9 export lic5s+
 & o!r processes "u ?is subtitle4  7#b7 
,cont5ts ,! plan %all include1 among o!r
 ?+s1 arrangem5ts = ! ,dep>tm5t (       
,comm]ce to provide c\nsel+ to bus9esses
 describ$ 9 p>agraph 7#a7 on fil+       
applications & id5tify+ items controll$ 
"u ?is subtitle1 z well z proposals =   
sem9>s & conf]5ces to educate su*       
bus9esses on export controls1 lic5s+    
proc$ures1 & relat$ obligations4  #hai4 
,requirem5ts to id5tify & control em]g+1
 f\ndational1 & o!r critical te*nologies

 9 export control regulations  7a7 ,9   
g5]al ,! ,presid5t %all e/abli% &1 9    
coord9ation ) ! ,secret>y1 ! ,secret>y (
 ,def5se1 ! ,secret>y ( ,en]gy1 !       
,secret>y ( ,/ate1 & ! heads ( o!r      
dep>tm5ts z appropriate1 lead a regul>1 
ongo+ int]ag5cy process to id5tify !    
foll[+3  7#a7 ,em]g+1 f\ndational1 or   
o!r critical te*nologies t are ess5tial 
to ! national security ( ! ,unit$ ,/ates
 & t are n--  7,a7 id5tifi$ 9 any li/ ( 
items controll$ = export "u ,unit$      
,/ates law or regulations2 or  7,b7     
h]eaft] sep>ately id5tifi$ 9 any law or 
regulation "u ! au?ority ( a dep>tm5t or
 ag5cy responsible = adm9i/]+ ,unit$    
,/ates export controls4  7#b7 ,o!r      
te*nologies t are n id5tifi$ 9 any li/ (
 items controll$ = export "u ,unit$     
,/ates law or regulations t are ess5tial
 to ! national security ( ! ,unit$      
,/ates4  7#c7 ,subject to subsections   
7c7 & 7d71 ! ,presid5t %all require !   
relevant export control au?ority to     
publi% propos$ regulations = public     

comm5t1 includ+1 z appropriate1 int]im  
f9al rules1 t w\ld control su* em]g+1   
f\ndational1 or o!r critical te*nologies
 id5tifi$ pursuant to ?is subsection &  
control ! release ( ea* su* te*nology to
 de/9ations1 end uses1 or end us]s z    
det]m9$ by ! ,presid5t4  7b7            
,requirem5ts ,! int]ag5cy process       
requir$ "u subsection 7a7 %all-- 7#a7 be
 in=m$ by multiple s\rces ( in=mation1  
includ+ indu/ry1 academia1 o!r op5 s\rce
 & classifi$ in=mation & transactions   
review$ by ! ,committee on ,=eign       
,inve/m5t 9 ! ,unit$ ,/ates2  7#b7 take 
into acc\nt ! =eign developm5t or       
availability ( su* em]g+1 f\ndational1 &
 o!r critical te*nologies & ! impact !  
controls e/abli%$ 9 subsection 7c7 may h
 on ! developm5t ( ! te*nology 9 !      
,unit$ ,/ates2 &  7#c7 ! ,secret>y1 !   
,secret>y ( ,def5se1 ! ,secret>y (      
,en]gy1 & ! ,secret>y ( ,/ate1 & ! heads
 ( o!r dep>tm5ts z appropriate1 %all    
consid] relevant in=mation provid$ by ! 
,director ( ,national ,intellig5ce4  7c7

 ,comm]ce controls  7#a7 ,9 g5]al ,!    
,secret>y is au?oriz$ to e/abli%        
controls1 z appropriate1 on te*nologies 
id5tifi$ ?r\gh ! int]ag5cy process      
requir$ "u subsection 7a7 & subject to !
 ,export ,adm9i/ration ,regulations1    
includ+ by publi%+ additional           
regulations4  7#b7 ,levels ( control    
7,a7 ,9 g5]al ,! ,secret>y1 9           
coord9ation ) ! ,secret>y ( ,def5se1 !  
,secret>y ( ,/ate1 & ! heads ( o!r      
dep>tm5ts z appropriate1 is au?oriz$ to 
develop & apply levels ( control1       
includ+ ! requirem5ts = a lic5se or o!r 
au?orization1 to export1 reexport1 or   
transf] su* te*nologies4  7,b7          
,requirem5ts ,9 develop+ & apply+ !     
levels ( control = su* te*nologies1 !   
,secret>y-- 7i7 %all take into acc\nt-- 
7,i7 :e!r a c\ntry is subject to a      
,unit$ ,/ates arms emb>go or is o!rwise 
subject to ,unit$ ,/ates sanctions2     
7,,ii7 pot5tial end us]s & end uses2 &  
7,,iii7 ! ?reat to ! national security &
 =eign policy ( ! ,unit$ ,/ates2  7ii7  

%all1 at a m9imum1 require a lic5se to  
export1 reexport1 or transf] su*        
te*nologies to a c\ntry t is subject to 
a compreh5sive ,unit$ ,/ates arms       
emb>go2 &  7iii7 may provide =          
appropriate lic5se exceptions = !       
export1 reexport1 or transf] ( su*      
te*nologies4  7,c7 ,lic5se applications 
submitt$ pursuant to subp>agraph        
7,b77ii7 ,= lic5se applications submitt$
 pursuant to subp>agraph 7,b77ii71 !    
,secret>y may1 ) respect to any jo9t    
v5ture1 jo9t developm5t agreem5t1 or    
simil> collaborative arrangem5t1 require
 ! applicant to id5tify1 9 addition to !
 =eign p>ticipant directly involv$ 9 !  
collaborative arrangem5t1 any =eign     
p]son ) significant own]%ip int]e/ 9 !  
direct =eign p>ticipant4  7#c7 ,review (
 lic5se applications  7,a7 ,9 g5]al ,!  
proc$ures set =? 9 ,executive ,ord]     
#abiha 7#aiie7 7z am5d$7 or any         
successor ,executive ord]1 %all apply to
 ! review ( applications = lic5ses to   
export1 reexport1 or transf] te*nologies

 id5tifi$ ?r\gh ! int]ag5cy process     
requir$ "u subsection 7a7 submitt$ to ! 
,dep>tm5t ( ,comm]ce pursuant to        
p>agraph 7#b74  7,b7 ,o!r in=mation ,9  
addition to ! proc$ures describ$ 9      
subp>agraph 7,a71 ! review (            
applications = su* lic5ses %all take    
into acc\nt in=mation provid$ by !      
,director ( ,national ,intellig5ce      
reg>d+ any ?reat to ! national security 
( ! ,unit$ ,/ates pos$ by ! propos$     
export1 reexport1 or transf] ( su*      
te*nologies4  7d7 ,multilat]al controls 
7#a7 ,9 g5]al ,! ,secret>y ( ,/ate1 9   
consultation ) ! ,secret>y & ! ,secret>y
 ( ,def5se & heads ( o!r dep>tm5ts z    
appropriate1 %all propose to ! relevant 
multilat]al export control regimes 9 !  
foll[+ ye> t te*nologies id5tifi$ ?r\gh 
! int]ag5cy process requir$ "u          
subsection 7a7 be add$ to ! li/ (       
te*nologies controll$ by su* regimes4   
7#b7 ,review ( cont9u$ unilat]al export 
controls ,! ,secret>y1 ) respect to ^?  
items on ! ,comm]ce ,control ,li/       

ma9ta9$ "u "p #ggd ( title #ae1 ,code ( 
,f$]al ,regulations1 & 9 consultation ) 
! ,secret>y ( ,def5se & ! ,secret>y (   
,/ate1 & ! ,secret>y ( ,/ate1 ) respect 
to ^? items on ! ,unit$ ,/ates          
,munitions ,li/ & 9 consultation ) !    
,secret>y ( ,def5se & ! heads ( o!r     
dep>tm5ts z appropriate1 %all det]m9e   
:e!r national security conc]ns w>rant   
cont9u$ unilat]al export controls ov]   
te*nologies propos$ = multilat]al       
control "u p>agraph 7#a7 if ! relevant  
multilat]al export control regime does n
 agree to li/ su* te*nologies on its    
control li/ )9 ?ree ye>s ( a proposal by
 ! ,unit$ ,/ates4  7e7 ,report ,!       
,secret>y1 ! ,secret>y ( ,/ate1 & !     
,secret>y ( ,en]gy1 z appropriate1 %all 
submit to ! ,committee on ,=eign        
,inve/m5t 9 ! ,unit$ ,/ates on a        
semiannual basis a report on updates (  
any key actions tak5 pursuant to ?is    
section4  7f7 ,rule ( con/ruction ,no?+ 
9 ?is section %\ld be con/ru$ to alt] or
 limit-- 7#a7 ! au?ority ( ! ,presid5t &

 ! ,secret>y ( ,/ate to designate ^?    
items t are consid]$ to be def5se       
articles or def5se s]vices = purposes ( 
! ,arms ,export ,control ,act 7#bb      
,u4,s4,c4 #bgea et seq47 or any o!r     
relevant law1 & to regulate su* items2  
or  7#b7 ! au?ority ( ! ,presid5t "u !  
,atomic ,en]gy ,act ( #aied1 ! ,nucle>  
,non-,prolif]ation ,act ( #aigh1 !      
,en]gy ,reorganization ,act ( #aigd1 ?is
 title1 or any o!r relevant law4  7g7   
,s5se ( ,congress ,x is ! s5se ( !      
,congress t ! ,presid5t %\ld reque/ 9 ! 
annual budget ( ! ,presid5t submitt$ "u 
section #aaje7;a7 ( title #ca1 ,unit$   
,/ates ,code1 suffici5t res\rces to     
enable ! relevant dep>tm5ts & ag5cies to
 effectively implem5t ?is section4      
#hbj4 ,review relat+ to c\ntries subject
 to compreh5sive ,unit$ ,/ates arms     
emb>go ,n lat] ?an #ahj days aft] ! date
 ( ! enactm5t ( ?is ,act1 ! ,secret>y1 !
 ,secret>y ( ,def5se1 ! ,secret>y (     
,en]gy1 ! ,secret>y ( ,/ate1 & ! heads (
 o!r dep>tm5ts z appropriate1 %all      

conduct a review (--  7#a7 section      
#gdd4ba ( title #ae1 ,code ( ,f$]al     
,regulations1 includ+ to assess :e!r !  
curr5t & anticipat$ risks ( direct or   
indirect div]sion1 su* z f policies &   
practices t effectively obscure         
di/9ctions betwe5 civil & milit>y       
end-us]s & end-uses1 require t ! scope (
 control "u su* section %\ld be exp&$ to
 apply to exports1 reexports1 or        
transf]s = milit>y end uses & milit>y   
end us]s 9 c\ntries t are subject to a  
compreh5sive ,unit$ ,/ates arms emb>go2 
&  7#b7 entries on ! ,comm]ce ,control  
,li/ ma9ta9$ "u "p #ggd ( title #ae1    
,code ( ,f$]al ,regulations1 t d n      
impose lic5se requirem5ts = exports1    
reexports1 or transf]s to c\ntries      
subject to a compreh5sive ,unit$ ,/ates 
arms emb>go4  #hba4 ,p5alties  7a7      
,unlawful acts  7#a7 ,9 g5]al ,x %all be
 unlawful = a p]son to violate1 attempt 
to violate1 conspire to violate1 or     
cause a violation ( ?is subtitle or (   
any regulation1 ord]1 lic5se1 or o!r    

au?orization issu$ "u ?is subtitle1     
includ+ any ( ! unlawful acts describ$ 9
 p>agraph 7#b74  7#b7 ,specific unlawful
 acts ,! unlawful acts describ$ 9 ?is   
p>agraph are ! foll[+3 7,a7 ,no p]son   
may engage 9 any conduct prohibit$ by or
 contr>y to1 or refra9 f engag+ 9 any   
conduct requir$ by ?is subtitle1 !      
,export ,adm9i/ration ,regulations1 or  
any ord]1 lic5se or au?orization issu$  
!reund]4  7,b7 ,no p]son may cause or   
aid1 abet1 c\nsel1 comm&1 induce1       
procure1 p]mit1 or approve ! do+ ( any  
act prohibit$1 or ! omission ( any act  
requir$ by ?is subtitle1 ! ,export      
,adm9i/ration ,regulations1 or any ord]1
 lic5se or au?orization issu$ !reund]4  
7,c7 ,no p]son may solicit or attempt a 
violation ( ?is subtitle1 ! ,export     
,adm9i/ration ,regulations1 or any ord]1
 lic5se or au?orization issu$ !reund]4  
7,d7 ,no p]son may conspire or act 9    
conc]t ) "o or m o!r p]sons 9 any mann] 
or = any purpose to br+ ab\t or to d any
 act t con/itutes a violation ( ?is     

subtitle1 ! ,export ,adm9i/ration       
,regulations1 or any ord]1 lic5se or    
au?orization issu$ !reund]4  7,e7 ,no   
p]son may ord]1 buy1 remove1 conceal1   
/ore1 use1 sell1 loan1 dispose (1       
transf]1 transport1 f9ance1 =w>d1 or    
o!rwise s]vice1 9 :ole or 9 "p1 or      
conduct negotiations to facilitate su*  
activities =1 any item export$ or to be 
export$ f ! ,unit$ ,/ates1 or t is      
o!rwise subject to ! ,export            
,adm9i/ration ,regulations1 ) k t a     
violation ( ?is subtitle1 ! ,export     
,adm9i/ration ,regulations1 or any ord]1
 lic5se or au?orization issu$ !reund]1  
has occurr$1 is ab\t to occur1 or is    
int5d$ to occur 9 connection ) ! item   
unless valid au?orization is obta9$     
!re=4  7,f7 ,no p]son may make any false
 or mislead+ repres5tation1 /atem5t1 or 
c]tification1 or falsify or conceal any 
mat]ial fact1 ei!r directly to !        
,dep>tm5t ( ,comm]ce1 or an (ficial (   
any o!r ,unit$ ,/ates ag5cy1 or         
indirectly ?r\gh any o!r p]son--  7i7 9 

! c\rse ( an inve/igation or o!r action 
subject to ! ,export ,adm9i/ration      
,regulations2  7ii7 9 connection ) !    
prep>ation1 submission1 issuance1 use1  
or ma9t5ance ( any export control       
docum5t or any report fil$ or requir$ to
 be fil$ pursuant to ! ,export          
,adm9i/ration ,regulations2 or  7iii7 = 
! purpose ( or 9 connection ) effect+   
any export1 reexport1 or transf] ( an   
item subject to ! ,export ,adm9i/ration 
,regulations or a s]vice or o!r activity
 ( a ,unit$ ,/ates p]son describ$ 9     
section #had4  7,g7 ,no p]son may engage
 9 any transaction or take any o!r      
action ) int5t to evade ! provisions (  
?is subtitle1 ! ,export ,adm9i/ration   
,regulations1 or any ord]1 lic5se1 or   
au?orization issu$ !reund]4  7,h7 ,no   
p]son may fail or refuse to comply ) any
 report+ or recordkeep+ requirem5ts ( ! 
,export ,adm9i/ration ,regulations or ( 
any ord]1 lic5se1 or au?orization issu$ 
!reund]4  7,i7 ,except z specifically   
au?oriz$ 9 ! ,export ,adm9i/ration      

,regulations or 9 writ+ by ! ,dep>tm5t (
 ,comm]ce1 no p]son may alt] any lic5se1
 au?orization1 export control docum5t1  
or ord] issu$ "u ! ,export ,adm9i/ration
 ,regulations4  7,j7 ,no p]son may take 
any action t is prohibit$ by a d5ial    
ord] issu$ by ! ,dep>tm5t ( ,comm]ce to 
prev5t imm95t violations ( ?is subtitle1
 ! ,export ,adm9i/ration ,regulations1  
or any ord]1 lic5se or au?orization     
issu$ !reund]4  7#c7 ,additional        
requirem5ts ,= purposes ( subp>agraph   
7,g71 any repres5tation1 /atem5t1 or    
c]tification made by any p]son %all be  
deem$ to be cont9u+ 9 effect4 ,ea* p]son
 :o has made a repres5tation1 /atem5t1  
or c]tification to ! ,dep>tm5t (        
,comm]ce relat+ to any ord]1 lic5se1 or 
o!r au?orization issu$ "u ?is subtitle  
%all notify ! ,dep>tm5t ( ,comm]ce1 9   
writ+1 ( any *ange ( any mat]ial fact or
 int5tion f t previ\sly repres5t$1 /at$1
 or c]tifi$1 imm$iately ^u receipt ( any
 in=mation t w\ld lead a reasonably     
prud5t p]son to "k t a *ange ( mat]ial  

fact or int5tion _h occurr$ or may occur
 9 ! future4  7b7 ,crim9al p5alty ,a    
p]son :o willfully commits1 willfully   
attempts to commit1 or willfully        
conspires to commit1 or aids & abets 9 !
 commission (1 an unlawful act describ$ 
9 subsection 7a7--  7#a7 %all be f9$ n m
 ?an #a1jjj1jjj2 &  7#b7 9 ! case ( !   
individual1 %all be imprison$ = n m ?an 
#bj ye>s1 or bo?4  7c7 ,civil p5alties  
7#a7 ,au?ority ,! ,presid5t may impose !
 foll[+ civil p5alties on a p]son = ea* 
violation by t p]son ( ?is subtitle or  
any regulation1 ord]1 or lic5se issu$ "u
 ?is subtitle1 = ea* violation3  7,a7 ,a
 f9e ( n m ?an #cjj1jjj or an am\nt t is
 twice ! value ( ! transaction t is !   
basis ( ! violation ) respect to :i* !  
p5alty is impos$1 :i*ev] is great]4     
7,b7 ,revocation ( a lic5se issu$ "u ?is
 subtitle to ! p]son4  7,c7 ,a          
prohibition on ! p]son's ability to     
export1 reexport1 or transf] any items1 
:e!r or n subject to controls "u ?is    
subtitle4  7#b7 ,proc$ures ,any civil   

p5alty "u ?is subsection may be impos$  
only aft] notice & opportunity = an     
ag5cy he>+ on ! record 9 accordance )   
sections #eed ?r\gh #eeg ( title #e1    
,unit$ ,/ates ,code4  7#c7 ,/&>ds =     
levels ( civil p5alty ,! ,secret>y may  
by regulation provide /&>ds = e/abli%+  
levels ( civil p5alty "u ?is subsection 
bas$ ^u factors su* z ! s]i\sness ( !   
violation1 ! culpability ( ! violator1 &
 su* mitigat+ factors z ! violator's    
record ( coop]ation ) ! ,gov]nm5t 9     
disclos+ ! violation4  7d7 ,crim9al     
=feiture ( prop]ty int]e/ & proce$s     
7#a7 ,=feiture ,any p]son :o is convict$
 "u subsection 7b7 ( a violation ( a    
control impos$ "u section #hac 7or any  
regulation1 ord]1 or lic5se issu$ )     
respect to su* control7 %all1 9 addition
 to any o!r p5alty1 =feit to ! ,unit$   
,/ates--  7,a7 any ( t p]son's int]e/ 91
 security (1 claim aga9/1 or prop]ty or 
contractual rights ( any k9d 9 !        
tangible items t 7 ! subject ( !        
violation2  7,b7 any ( t p]son's int]e/ 

91 security (1 claim aga9/1 or prop]ty  
or contractual rights ( any k9d 9       
tangible prop]ty t 0 us$ 9 ! violation2 
&  7,c7 any ( t p]son's prop]ty         
con/itut+1 or d]iv$ f1 any proce$s      
obta9$ directly or indirectly z a result
 ( ! violation4  7#b7 ,proc$ures ,!     
proc$ures 9 any =feiture "u ?is         
subsection1 & ! duties & au?ority ( !   
c\rts ( ! ,unit$ ,/ates & ! ,attorney   
,g5]al ) respect to any =feiture action 
"u ?is subsection or ) respect to any   
prop]ty t may be subject to =feiture "u 
?is subsection1 %all be gov]n$ by !     
provisions ( section #aifc ( title #ah1 
,unit$ ,/ates ,code4  7e7 ,prior        
convictions  7#a7 ,lic5se b>  7,a7 ,9   
g5]al ,! ,secret>y may-- 7i7 d5y !      
eligibility ( any p]son convict$ ( a    
crim9al violation describ$ 9 subp>agraph
 7,b7 to export1 reexport1 or transf]   
outside ! ,unit$ ,/ates any item1 :e!r  
or n subject to controls "u ?is         
subtitle1 = a p]iod ( up to #aj ye>s    
beg9n+ on ! date ( ! conviction2 &  7ii7

 revoke any lic5se or o!r au?orization  
to export1 reexport1 or transf] items t 
0 issu$ "u ?is subtitle & 9 :i* su*     
p]son has an int]e/ at ! "t ( !         
conviction4  7,b7 ,violations ,!        
violations ref]r$ to 9 subp>agraph 7,a7 
are any crim9al violations (1 or crim9al
 attempt or conspiracy to violate--  7i7
 ?is subtitle 7or any regulation1       
lic5se1 or ord] issu$ "u ?is subtitle72 
7ii7 any regulation1 lic5se1 or ord]    
issu$ "u ! ,int]national ,em]g5cy       
,economic ,p[]s ,act2  7iii7 section    
#cga1 #eed1 #gic1 #gid1 or #gih ( title 
#ah1 ,unit$ ,/ates ,code2  7iv7 section 
#ajja ( title #ah1 ,unit$ ,/ates ,code2 
7v7 section #d7;b7 ( ! ,int]nal         
,security ,act ( #aiej 7#ej ,u4,s4,c4   
#ghc7;b772 or  7vi7 section #ch ( !     
,arms ,export ,control ,act 7#bb        
,u4,s4,c4 #bggh74  7#b7 ,application to 
o!r p>ties ,! ,secret>y may ex]cise !   
au?ority "u p>agraph 7#a7 ) respect to  
any p]son relat$1 ?r\gh affiliation1    
own]%ip1 control1 position (            

responsibility1 or o!r connection 9 !   
conduct ( trade or bus9ess1 to any p]son
 convict$ ( any violation ( law set =? 9
 p>agraph 7#a71 ^u a %[+ ( su*          
relation%ip ) ! convict$ p>ty1 & subject
 to ! proc$ures set =? 9 subsection     
7c77#b74  7f7 ,o!r au?orities ,no?+ 9   
subsection 7c71 7d71 or 7e7 limits--    
7#a7 ! availability ( o!r adm9i/rative  
or judicial rem$ies ) respect to        
violations ( ?is subtitle1 or any       
regulation1 ord]1 lic5se or o!r         
au?orization issu$ "u ?is subtitle2     
7#b7 ! au?ority to compromise & settle  
adm9i/rative proce$+s br\ght ) respect  
to violations ( ?is subtitle1 or any    
regulation1 ord]1 lic5se1 or o!r        
au?orization issu$ "u ?is subtitle2 or  
7#c7 ! au?ority to compromise1 remit or 
mitigate seizures & =feitures pursuant  
to section #a7;b7 ( title ,,vi ( ! ,act 
( ,june #ae1 #aiag 7#bb ,u4,s4,c4       
#dja7;b774  #hbb4 ,en=cem5t  7a7        
,au?orities ,9 ord] to en=ce ?is        
subtitle1 ! ,presid5t %all delegate to !

 heads ( o!r appropriate ,f$]al         
dep>tm5ts & ag5cies ! au?ority to--     
7#a7 issue regulations1 ord]s1 &        
guidel9es2  7#b7 require1 inspect1 &    
obta9 books1 records1 & any o!r         
in=mation f any p]son subject to !      
provisions ( ?is subtitle2  7#c7 adm9i/]
 oa?s or affirmations & by subpo5a      
require any p]son to appe> & te/ify or  
to appe> & produce books1 records1 & o!r
 writ+s1 or bo?2  7#d7 conduct          
inve/igations 7includ+ und]cov]7 9 !    
,unit$ ,/ates & 9 o!r c\ntries us+ all  
applicable laws ( ! ,unit$ ,/ates1      
includ+ int]cept+ any wire1 oral1 &     
electronic communications1 conduct+     
electronic surveillance1 us+ p5 regi/]s 
& trap & trace devices1 & c>ry+ out     
acquisitions1 to ! ext5t au?oriz$ "u    
*apt]s #aai1 #aba1 & #bjf ( title #ah1  
,unit$ ,/ates ,code2  7#e7 inspect1     
se>*1 deta91 seize1 or issue tempor>y   
d5ial ord]s ) respect to items1 9 any   
=m1 t are subject to controls "u ?is    
subtitle1 or conveyances on :i* x is    

believ$ t !re are items t h be51 are    
be+1 or are ab\t to be export$1         
reexport$1 or transf]r$ 9 violation (   
?is subtitle1 or any regulations1 ord]1 
lic5se1 or o!r au?orization issu$       
!reund]2  7#f7 c>ry fire>ms2  7#g7      
conduct prelic5se inspections &         
po/-%ipm5t v]ifications2 &  7#h7 execute
 w>rants & make arre/s4  7b7 ,en=cem5t (
 subpo5as ,9 ! case ( contumacy by1 or  
refusal to obey a subpo5a issu$ to1 any 
p]son "u subsection 7a77#c71 a di/rict  
c\rt ( ! ,unit$ ,/ates1 aft] notice to  
su* p]son & a he>+1 %all h jurisdiction 
to issue an ord] requir+ su* p]son to   
appe> & give te/imony or to appe> &     
produce books1 records1 & o!r writ+s1   
reg>dless ( =mat1 t are ! subject ( !   
subpo5a4 ,any failure to obey su* ord] (
 ! c\rt may be puni%$ by su* c\rt z a   
contempt !re(4  7c7 ,be/ practice       
guidel9es  7#a7 ,9 g5]al ,! ,secret>y1 9
 consultation ) ! heads ( o!r           
appropriate ,f$]al ag5cies1 %\ld publi% 
& update be/ practices guidel9es to     

assi/ p]sons 9 develop+ & implem5t+1 on 
a volunt>y basis1 effective export      
control programs 9 compliance ) !       
regulations issu$ "u ?is subtitle4  7#b7
 ,export compliance program ,!          
implem5tation by a p]son ( an effective 
export compliance program & a high      
quality ov]all export compliance ef=t by
 a p]son %\ld ord9>ily be giv5 weight z 
mitigat+ factors 9 a civil p5alty action
 aga9/ ! p]son "u ?is subtitle4  7d7    
,ref]5ce to en=cem5t ,= purposes ( ?is  
section1 a ref]5ce to ! en=cem5t (1 or a
 violation (1 ?is subtitle includes a   
ref]5ce to ! en=cem5t or a violation (  
any regulation1 ord]1 lic5se or o!r     
au?orization issu$ pursuant to ?is      
subtitle4  7e7 ,immunity ,a p]son %all n
 be excus$ f comply+ ) any requirem5ts  
"u ?is section because ( ! p]son's      
privilege aga9/ self-incrim9ation1 b !  
immunity provisions ( section #fjjb (   
title #ah1 ,unit$ ,/ates ,code1 %all    
apply ) respect to any individual :o    
specifically claims su* privilege4  7f7 

,confid5tiality ( in=mation  7#a7       
,exemptions f disclosure  7,a7 ,9 g5]al 
,in=mation obta9$ "u ?is subtitle may be
 )held f disclosure only to ! ext5t     
p]mitt$ by /atute1 except t in=mation   
describ$ 9 subp>agraph 7,b7 %all be     
)held f public disclosure & %all n be   
subject to disclosure "u section        
#eeb7;b77#c7 ( title #e1 ,unit$ ,/ates  
,code1 unless ! release ( su* in=mation 
is det]m9$ by ! ,secret>y to be 9 !     
national int]e/4  7,b7 ,in=mation       
describ$ ,in=mation describ$ 9 ?is      
subp>agraph is in=mation submitt$ or    
obta9$ 9 connection ) an application = a
 lic5se or o!r au?orization to export1  
reexport1 or transf] items1 engage 9 o!r
 activities1 a recordkeep+ or report+   
requirem5t1 en=cem5t activity1 or o!r   
op]ations "u ?is subtitle1 includ+--    
7i7 ! lic5se application1 lic5se1 or o!r
 au?orization itself2  7ii7             
classification or advisory op9ion       
reque/s1 & ! response !reto2  7iii7     
lic5se det]m9ations1 & in=mation p]ta9+ 

!reto2  7iv7 in=mation or evid5ce obta9$
 9 ! c\rse ( any inve/igation2 &  7v7   
in=mation obta9$ or furni%$ 9 connection
 ) any int]national agreem5t1 treaty1 or
 o!r obligation4  7#b7 ,in=mation to !  
,congress & ,,gao  7,a7 ,9 g5]al ,no?+ 9
 ?is section %all be con/ru$ z au?oriz+ 
! )hold+ ( in=mation f ! ,congress or f 
! ,gov]nm5t ,acc\ntability ,(fice4  7,b7
 ,availability to ! ,congress  7i7 ,9   
g5]al ,any in=mation obta9$ at any "t "u
 any provision ( ! ,export ,adm9i/ration
 ,act ( #aigi 7z 9 effect on ! day be=e 
! date ( ! enactm5t ( ?is ,act & z      
cont9u$ 9 effect pursuant to !          
,int]national ,em]g5cy ,economic ,p[]s  
,act71 "u ! ,export ,adm9i/ration       
,regulations1 or "u ?is subtitle1       
includ+ any report or lic5se application
 requir$ "u any su* provision1 %all be  
made available to a committee or        
subcommittee ( ,congress ( appropriate  
jurisdiction1 ^u ! reque/ ( ! *airman or
 rank+ m9ority memb] ( su* committee or 
subcommittee4  7ii7 ,prohibition on     

fur!r disclosure ,no su* committee or   
subcommittee1 or memb] !re(1 may        
disclose any in=mation made available "u
 clause 7i71 t is submitt$ on a         
confid5tial basis unless ! full         
committee det]m9es t ! )hold+ ( t       
in=mation is contr>y to ! national      
int]e/4  7,c7 ,availability to ,,gao    
7i7 ,9 g5]al ,in=mation describ$ 9      
clause 7i7 ( subp>agraph 7,b7 %all be   
subject to ! limitations conta9$ 9      
section #gaf ( title #ca1 ,unit$ ,/ates 
,code4  7ii7 ,prohibition on fur!r      
disclosure ,an (fic] or employee ( !    
,gov]nm5t ,acc\ntability ,(fice may n   
disclose1 except to ! ,congress 9       
accordance ) ?is p>agraph1 any su*      
in=mation t is submitt$ on a confid5tial
 basis or f :i* any individual c be     
id5tifi$4  7#c7 ,in=mation %>+  7,a7 ,9 
g5]al ,any ,f$]al (ficial describ$ 9    
section #hae7;a7 :o obta9s in=mation t  
is relevant to ! en=cem5t ( ?is         
subtitle1 includ+ in=mation p]ta9+ to   
any inve/igation1 %all furni% su*       

in=mation to ea* appropriate dep>tm5t1  
ag5cy1 or (fice ) en=cem5t              
responsibilities "u ?is section to !    
ext5t consi/5t ) ! protection (         
intellig5ce1 c\nt]9tellig5ce1 & law     
en=cem5t s\rces1 me?ods1 & activities4  
7,b7 ,exceptions ,! provisions ( ?is    
p>agraph %all n apply to in=mation      
subject to ! re/rictions set =? 9       
section #i ( title #ac1 ,unit$ ,/ates   
,code1 & return in=mation1 z def9$ 9    
subsection 7b7 ( section #fajc ( !      
,int]nal ,rev5ue ,code ( #aihf 7#bf     
,u4,s4,c4 #fajc7;b771 may be disclos$   
only z au?oriz$ by t section4  7,c7     
,ex*ange ( in=mation ,! ,presid5t %all  
ensure t ! heads ( dep>tm5ts1 ag5cies1 &
 (fices ) en=cem5t au?orities "u ?is    
subtitle1 consi/5t ) protection ( law   
en=cem5t & its s\rces & me?ods--  7i7   
ex*ange any lic5s+ & en=cem5t in=mation 
) "o ano!r t is necess>y to facilitate  
en=cem5t ef=ts "u ?is section2 &  7ii7  
consult on a regul> basis ) "o ano!r & )
 ! head ( o!r dep>tm5ts1 ag5cies1 &     

(fices t obta9 in=mation subject to ?is 
p>agraph1 9 ord] to facilitate ! ex*ange
 ( su* in=mation4  7,d7 ,in=mation %>+ )
 ,f$]al ag5cies ,lic5s+ or en=cem5t     
in=mation obta9$ "u ?is subtitle may be 
%>$ ) heads ( dep>tm5ts1 ag5cies1 &     
(fices t d n h en=cem5t au?orities "u   
?is subtitle on a case-by-case basis at 
! discretion ( ! ,presid5t4 ,su*        
in=mation may be %>$ only :5 ! ,presid5t
 makes a det]m9ation t ! %>+ ( ?is      
in=mation is 9 ! national int]e/4  7g7  
,report+ requirem5ts ,9 ! adm9i/ration (
 ?is section1 report+ requirem5ts %all  
be design$ to r$uce ! co/ ( report+1    
recordkeep+1 & docum5tation to ! ext5t  
consi/5t ) effective en=cem5t &         
compilation ( useful trade /ati/ics4    
,report+1 recordkeep+1 & docum5tation   
requirem5ts %all be p]iodically review$ 
& revis$ 9 ! light ( developm5ts 9 !    
field ( in=mation te*nology4  7h7 ,civil
 =feiture  7#a7 ,9 g5]al ,any tangible  
items seiz$ "u subsection 7a7 by        
designat$ (fic]s or employees %all be   

subject to =feiture to ! ,unit$ ,/ates 9
 accordance ) applicable law1 except t  
prop]ty seiz$ %all be return$ if !      
prop]ty own] is n f\nd guilty ( a civil 
or crim9al violation "u section #hai4   
7#b7 ,proc$ures ,any seizure or =feiture
 "u ?is subsection %all be c>ri$ out 9  
accordance ) ! proc$ures set =? 9       
section #iha ( title #ah1 ,unit$ ,/ates 
,code4  #hbc4 ,adm9i/rative proc$ure    
7a7 ,9 g5]al ,! functions ex]cis$ "u ?is
 subtitle %all n be subject to sections 
#eea1 #eec ?r\gh #eei1 & #gja ?r\gh #gjf
 ( title #e1 ,unit$ ,/ates ,code4  7b7  
,adm9i/rative law judges ,! ,secret>y is
 au?oriz$ to appo9t an adm9i/rative law 
judge1 & may designate adm9i/rative law 
judges f o!r ,f$]al ag5cies :o are      
provid$ pursuant to a legally au?oriz$  
int]ag5cy agreem5t ) ! ,dep>tm5t (      
,comm]ce1 & consi/5t ) ! provisions (   
section #caje ( title #e1 ,unit$ ,/ates 
,code4  7c7 ,am5dm5ts to regulations ,! 
,presid5t %all notify 9 advance !       
,committee on ,bank+1 ,h\s+1 & ,urban   

,affairs ( ! ,s5ate & ! ,committee on   
,=eign ,affairs ( ! ,h\se (             
,repres5tatives ( any propos$ am5dm5ts  
to ! ,export ,adm9i/ration ,regulations 
) an explanation ( ! int5t & rationale (
 su* am5dm5ts4  #hbd4 ,annual report to 
,congress  7a7 ,9 g5]al ,! ,presid5t    
%all submit to ,congress1 by ,decemb]   
#ca ( ea* ye>1 a report on !            
implem5tation ( ?is subtitle dur+ !     
prec$+ fiscal ye>4 ,! report %all       
include a review (--  7#a7 ! effect (   
controls impos$ "u ?is subtitle on      
exports1 reexports1 & transf]s ( items 9
 address+ ?reats to ! national security 
or =eign policy ( ! ,unit$ ,/ates1      
includ+ a description ( lic5s+ process+ 
times2  7#b7 ! impact ( su* controls on 
! sci5tific & te*nological lead]%ip ( ! 
,unit$ ,/ates2  7#c7 ! consi/5cy ) su*  
controls ( export controls impos$ by o!r
 c\ntries2  7#d7 ef=ts to provide       
export]s ) compliance assi/ance1 includ+
 specific actions to assi/ small- &     
m$ium-siz$ bus9esses2  7#e7 a summ>y (  

regulatory *anges f ! prior fiscal ye>2 
7#f7 a summ>y ( export en=cem5t actions1
 includ+ ( actions tak5 to implem5t     
end-use monitor+ ( dual-use1 milit>y1 & 
o!r items subject to ! ,export          
,adm9i/ration ,regulations2  7#g7 a     
summ>y ( approv$ lic5se applications to 
proscrib$ p]sons2  7#h7 ef=ts und]tak5  
)9 ! previ\s ye> to comply ) !          
requirem5ts ( section #hai1 includ+ any 
critical te*nologies id5tifi$ "u su*    
section & h[ or :e!r su* critical       
te*nologies 7 controll$ = export2 &     
7#i7 a summ>y ( indu/rial base          
assessm5ts conduct$ dur+ ! previ\s ye>  
by ! ,dep>tm5t ( ,comm]ce1 includ+ )    
respect to c\nt]feit electronics1       
f\ndational te*nologies1 & o!r rese>* & 
analysis ( critical te*nologies &       
indu/rial capabilities ( key            
def5se-relat$ sectors4  7b7 ,=m ,!      
report requir$ "u subsection 7a7 %all be
 submitt$ 9 unclassifi$ =m1 b may conta9
 a classifi$ annex4  #hbe4 ,repeal  7a7 
,9 g5]al ,! ,export ,adm9i/ration ,act (

 #aigi 7#ej ,u4,s4,c4 ,app4 #bdja et    
seq47 7z cont9u$ 9 effect pursuant to ! 
,int]national ,em]g5cy ,economic ,p[]s  
,act7 is repeal$4  7b7 ,implem5tation ,!
 ,presid5t %all implem5t ! am5dm5t made 
by subsection 7a7 by ex]cis+ !          
au?orities ( ! ,presid5t "u !           
,int]national ,em]g5cy ,economic ,p[]s  
,act 7#ej ,u4,s4,c4 #agja et seq474     
#hbf4 ,effect on o!r ,acts  7a7 ,9 g5]al
 ,except z o!rwise provid$ 9 ?is        
subtitle1 no?+ conta9$ 9 ?is subtitle   
%all be con/ru$ to modify1 repeal1      
sup]s$e1 or o!rwise affect ! provisions 
( any o!r laws au?oriz+ control ov]     
exports1 reexports1 or transf]s ( any   
item1 or activities ( ,unit$ ,/ates     
p]sons subject to ! ,export             
,adm9i/ration ,regulations4  7b7        
,coord9ation ( controls  7#a7 ,9 g5]al  
,! au?ority grant$ to ! ,presid5t "u ?is
 subtitle %all be ex]cis$ 9 su* mann] s 
z to a*ieve effective coord9ation ) all 
export control & sanctions au?orities   
ex]cis$ by ,f$]al dep>tm5ts & ag5cies   

delegat$ ) au?ority "u ?is subtitle1    
p>ticul>ly ! ,dep>tm5t ( ,/ate1 !       
,dep>tm5t ( ! ,treasury1 & ! ,dep>tm5t (
 ,en]gy4  7#b7 ,s5se ( ,congress ,x is !
 s5se ( ,congress t 9 ord] to a*ieve    
effective coord9ation describ$ 9        
p>agraph 7#a71 su* ,f$]al dep>tm5ts &   
ag5cies--  7,a7 %\ld cont9u\sly "w to   
create en=ceable regulations ) respect  
to ! export1 reexport1 & transf] by     
,unit$ ,/ates & =eign p]sons (          
commodities1 s(tw>e1 te*nology1 &       
s]vices to v>i\s end uses & end us]s =  
=eign policy & national security        
reasons2  7,b7 %\ld regul>ly "w to r$uce
 complexity 9 ! sy/em1 includ+          
complexity caus$ m]ely by ! exi/5ce (   
/ructural1 def9itional1 & o!r non-policy
 bas$ diff]5ces betwe5 & among diff]5t  
export control & sanctions sy/ems2 &    
7,c7 %\ld coord9ate controls on items   
export$1 reexport$1 or transf]r$ 9      
connection ) a =eign milit>y sale "u    
*apt] #b ( ! ,arms ,export ,control ,act
 or a comm]cial sale "u section #ch ( ! 

,arms ,export ,control ,act to r$uce z  
mu* unnecess>y adm9i/rative burd5 z     
possible t is a result ( diff]5ces      
betwe5 ! ex]cise ( ^? two au?orities4   
7c7 ,nonprolif]ation controls ,no?+ 9   
?is subtitle %all be con/ru$ to sup]s$e 
! proc$ures publi%$ by ! ,presid5t      
pursuant to section #cji7;c7 ( ! ,nucle>
 ,non-,prolif]ation ,act ( #aigh4  #hbg4
 ,transition provisions  7a7 ,9 g5]al   
,all delegations1 rules1 regulations1   
ord]s1 det]m9ations1 lic5ses1 or o!r =ms
 ( adm9i/rative action t h be5 made1    
issu$1 conduct$1 or all[$ to become     
effective "u ! ,export ,adm9i/ration    
,act ( #aigi 7z 9 effect on ! day be=e !
 date ( ! enactm5t ( ?is ,act & z       
cont9u$ 9 effect pursuant to !          
,int]national ,em]g5cy ,economic ,p[]s  
,act71 or ! ,export ,adm9i/ration       
,regulations1 & are 9 effect z ( ! date 
( ! enactm5t ( ?is ,act1 %all cont9ue 9 
effect accord+ to _! t]ms until modifi$1
 sup]s$$1 set aside1 or revok$ "u !     
au?ority ( ?is subtitle4  7b7           

,adm9i/rative & judicial proce$+s ,?is  
subtitle %all n affect any adm9i/rative 
or judicial proce$+s comm5c$1 or any    
applications = lic5ses made1 "u !       
,export ,adm9i/ration ,act ( #aigi 7z 9 
effect on ! day be=e ! date ( ! enactm5t
 ( ?is ,act & z cont9u$ 9 effect        
pursuant to ! ,int]national ,em]g5cy    
,economic ,p[]s ,act71 or ! ,export     
,adm9i/ration ,regulations4  7c7 ,c]ta9 
det]m9ations & ref]5ces  7#a7 ,/ate     
sponsors ( t]rorism ,any det]m9ation t 0
 made "u section #f7;j7 ( ! ,export     
,adm9i/ration ,act ( #aigi 7z 9 effect  
on ! day be=e ! date ( ! enactm5t ( ?is 
,act & z cont9u$ 9 effect pursuant to ! 
,int]national ,em]g5cy ,economic ,p[]s  
,act7 %all cont9ue 9 effect z if !      
det]m9ation _h be5 made "u section      
#had7;c7 ( ?is ,act4  7#b7 ,ref]5ce ,any
 ref]5ce 9 any o!r provision ( law to a 
c\ntry ! gov]nm5t ( :i* ! ,secret>y (   
,/ate has det]m9$1 = purposes ( section 
#f7;j7 ( ! ,export ,adm9i/ration ,act ( 
#aigi 7z 9 effect on ! day be=e ! date (

 ! enactm5t ( ?is ,act & z cont9u$ 9    
effect pursuant to ! ,int]national      
,em]g5cy ,economic ,p[]s ,act71 is a    
gov]nm5t t has repeat$ly provid$ support
 = acts ( int]national t]rorism %all be 
deem$ to ref] to a c\ntry ! gov]nm5t (  
:i* ! ,secret>y ( ,/ate has det]m9$1 =  
purposes ( section #had7;c71 is a       
gov]nm5t t has repeat$ly provid$ support
 = acts ( int]national t]rorism4  ,b    
,anti-,boycott ,act ( #bjah  #hca4 ,%ort
 title ,?is subtitle may be cit$ z !    
,anti-,boycott ,act ( #bjah4  #hcb4     
,/atem5t ( policy ,congress decl>es x is
 ! policy ( ! ,unit$ ,/ates--  7#a7 to  
oppose re/rictive trade practices or    
boycotts fo/]$ or impos$ by any =eign   
c\ntry aga9/ o!r c\ntries fri5dly to !  
,unit$ ,/ates or aga9/ any ,unit$ ,/ates
 p]son2  7#b7 to enc\rage &1 9 specifi$ 
cases1 require ,unit$ ,/ates p]sons     
engag$ 9 ! export ( goods or te*nology  
or o!r in=mation to refuse to take      
actions1 includ+ furni%+ in=mation or   
ent]+ into or implem5t+ agreem5ts1 :i* h

 ! effect ( fur!r+ or support+ !        
re/rictive trade practices or boycotts  
fo/]$ or impos$ by any =eign c\ntry     
aga9/ any ,unit$ ,/ates p]son2 &  7#c7  
to fo/] int]national coop]ation & !     
developm5t ( int]national rules &       
in/itutions to assure reasonable access 
to _w supplies4  #hcc4 ,=eign boycotts  
7a7 ,prohibitions & exceptions  7#a7    
,prohibitions ,= ! purpose ( implem5t+ !
 policies set =? 9 section #hcb1 !      
,presid5t %all issue regulations        
prohibit+ any ,unit$ ,/ates p]son1 )    
respect to t p]son's activities 9 !     
int]/ate or =eign comm]ce ( ! ,unit$    
,/ates1 f tak+ or kn[+ly agree+ to take 
any ( ! foll[+ actions ) int5t to comply
 )1 fur!r1 or support any boycott fo/]$ 
or impos$ by any =eign c\ntry1 aga9/ a  
c\ntry :i* is fri5dly to ! ,unit$ ,/ates
 & :i* is n itself ! object ( any =m (  
boycott pursuant to ,unit$ ,/ates law or
 regulation3  7,a7 ,refus+1 or requir+  
any o!r p]son to refuse1 to d bus9ess ) 
or 9 ! boycott$ c\ntry1 ) any bus9ess   

conc]n organiz$ "u ! laws ( ! boycott$  
c\ntry1 ) any national or resid5t ( !   
boycott$ c\ntry1 or ) any o!r p]son1    
pursuant to an agreem5t )1 a requirem5t 
(1 or a reque/ f or on behalf ( !       
boycott+ c\ntry4 ,! m]e abs5ce ( a      
bus9ess relation%ip ) or 9 ! boycott$   
c\ntry ) any bus9ess conc]n organiz$ "u 
! laws ( ! boycott$ c\ntry1 ) any       
national or resid5t ( ! boycott$ c\ntry1
 or ) any o!r p]son1 does n indicate !  
exi/5ce ( ! int5t requir$ to e/abli% a  
violation ( regulations issu$ to c>ry   
out ?is subp>agraph4  7,b7 ,refus+1 or  
requir+ any o!r p]son to refuse1 to     
employ or o!rwise discrim9at+ aga9/ any 
,unit$ ,/ates p]son on ! basis ( race1  
religion1 sex1 or national orig9 ( t    
p]son or ( any own]1 (fic]1 director1 or
 employee ( su* p]son4  7,c7 ,furni%+   
in=mation ) respect to ! race1 religion1
 sex1 or national orig9 ( any ,unit$    
,/ates p]son or ( any own]1 (fic]1      
director1 or employee ( su* p]son4  7,d7
 ,furni%+ in=mation1 or reque/+ !       

furni%+ ( in=mation1 ab\t :e!r any p]son
 has1 has _h1 or proposes to h any      
bus9ess relation%ip 7includ+ a          
relation%ip by way ( sale1 pur*ase1     
legal or comm]cial repres5tation1 %ipp+ 
or o!r transport1 insurance1 inve/m5t1  
or supply7 ) or 9 ! boycott$ c\ntry1 )  
any bus9ess conc]n organiz$ "u ! laws ( 
! boycott$ c\ntry1 ) any national or    
resid5t ( ! boycott$ c\ntry1 or ) any   
o!r p]son :i* is kn[n or believ$ to be  
re/rict$ f hav+ any bus9ess relation%ip 
) or 9 ! boycott+ c\ntry4 ,no?+ 9 ?is   
subp>agraph %all prohibit ! furni%+ (   
normal bus9ess in=mation 9 a comm]cial  
context z def9$ by ! ,secret>y4  7,e7   
,furni%+ in=mation ab\t :e!r any p]son  
is a memb] (1 has made contributions to1
 or is o!rwise associat$ ) or involv$ 9 
! activities ( any *>itable or frat]nal 
organization :i* supports ! boycott$    
c\ntry4  7,f7 ,pay+1 honor+1 confirm+1  
or o!rwise implem5t+ a lett] ( cr$it :i*
 conta9s any condition or requirem5t    
compliance ) :i* is prohibit$ by        

regulations issu$ pursuant to ?is       
p>agraph1 & no ,unit$ ,/ates p]son %all1
 z a result ( ! application ( ?is       
p>agraph1 be obligat$ to pay or o!rwise 
honor or implem5t su* lett] ( cr$it4    
7#b7 ,exceptions ,regulations issu$     
pursuant to p>agraph 7#a7 %all provide  
exceptions =-- 7,a7 comply+ or agree+ to
 comply ) requirem5ts--  7i7 prohibit+ !
 import ( goods or s]vices f ! boycott$ 
c\ntry or goods produc$ or s]vices      
provid$ by any bus9ess conc]n organiz$  
"u ! laws ( ! boycott$ c\ntry or by     
nationals or resid5ts ( ! boycott$      
c\ntry2 or  7ii7 prohibit+ ! %ipm5t (   
goods to ! boycott+ c\ntry on a c>ri] ( 
! boycott$ c\ntry1 or by a r\te o!r ?an 
t prescrib$ by ! boycott+ c\ntry or !   
recipi5t ( ! %ipm5t2  7,b7 comply+ or   
agree+ to comply ) import & %ipp+       
docum5t requirem5ts ) respect to !      
c\ntry ( orig91 ! "n ( ! c>ri] & r\te ( 
%ipm5t1 ! "n ( ! suppli] ( ! %ipm5t or !
 "n ( ! provid] ( o!r s]vices1 except t 
no in=mation kn[+ly furni%$ or convey$ 9

 response to su* requirem5ts may be /at$
 9 negative1 blackli/+1 or simil>       
exclusion>y t]ms1 o!r ?an ) respect to  
c>ri]s or r\te ( %ipm5t z may be p]mitt$
 by su* regulations 9 ord] to comply )  
precaution>y requirem5ts protect+ aga9/ 
w> risks & confiscation2  7,c7 comply+  
or agree+ to comply 9 ! normal c\rse (  
bus9ess ) ! unilat]al & specific        
selection by a boycott+ c\ntry1 or      
national or resid5t !re(1 ( c>ri]s1     
insur]s1 suppli]s ( s]vices to be p]=m$ 
)9 ! boycott+ c\ntry or specific goods  
:i*1 9 ! normal c\rse ( bus9ess1 are    
id5tifiable by s\rce :5 import$ into !  
boycott+ c\ntry2  7,d7 comply+ or agree+
 to comply ) export requirem5ts ( !     
boycott+ c\ntry relat+ to %ipm5ts or    
trans%ipm5ts ( exports to ! boycott$    
c\ntry1 to any bus9ess conc]n ( or      
organiz$ "u ! laws ( ! boycott$ c\ntry1 
or to any national or resid5t ( !       
boycott$ c\ntry2  7,e7 compliance by an 
individual or agreem5t by an individual 
to comply ) ! immigration or passport   

requirem5ts ( any c\ntry ) respect to   
su* individual or any memb] ( su*       
individual's family or ) reque/s =      
in=mation reg>d+ requirem5ts ( employm5t
 ( su* individual )9 ! boycott+ c\ntry2 
&  7,f7 compliance by a ,unit$ ,/ates   
p]son resid5t 9 a =eign c\ntry or       
agreem5t by su* p]son to comply ) ! laws
 ( t c\ntry ) respect to 8 activities   
exclusively !re91 & su* regulations may 
conta9 exceptions = su* resid5t comply+ 
) ! laws or regulations ( t =eign c\ntry
 gov]n+ imports into su* c\ntry (       
tradem>k$1 trade nam$1 or simil>ly      
specifically id5tifiable products1 or   
compon5ts ( products = 8 own use1       
includ+ ! p]=mance ( contractual s]vices
 )9 t c\ntry1 z may be def9$ by su*     
regulations4  7#c7 ,special rules       
,regulations issu$ pursuant to p>agraphs
 7#b77;,c7 & 7#b77;,f7 %all n provide   
exceptions f p>agraphs 7#a77;,b7 &      
7#a77;,c74  7#d7 ,rule ( con/ruction    
,no?+ 9 ?is subsection may be con/ru$ to
 sup]s$e or limit ! op]ation ( !        

antitru/ or civil rights laws ( ! ,unit$
 ,/ates4  7#e7 ,application ,?is section
 %all apply to any transaction or       
activity und]tak51 by or ?r\gh a ,unit$ 
,/ates p]son or any o!r p]son1 ) int5t  
to evade ! provisions ( ?is section z   
implem5t$ by ! regulations issu$        
pursuant to ?is subsection1 & su*       
regulations %all expressly provide t !  
exceptions set =? 9 p>agraph 7#b7 %all n
 p]mit activities or agreem5ts 7express$
 or impli$ by a c\rse ( conduct1 includ+
 a patt]n ( responses7 o!rwise          
prohibit$1 :i* are n )9 ! int5t ( su*   
exceptions4  7b7 ,=eign policy controls 
7#a7 ,9 g5]al ,9 addition to !          
regulations issu$ pursuant to subsection
 7a71 regulations issu$ "u subtitle ,a  
to c>ry out ! policies set =? 9 section 
#hab7a77;,d7 %all implem5t ! policies   
set =? 9 ?is section4  7#b7 ,requirem5ts
 ,su* regulations %all require t any    
,unit$ ,/ates p]son receiv+ a reque/ = !
 furni%+ ( in=mation1 ! ent]+ into or   
implem5t+ ( agreem5ts1 or ! tak+ ( any  

o!r action ref]r$ to 9 subsection 7a7   
%all report t fact to ! ,secret>y1      
toge!r ) su* o!r in=mation conc]n+ su*  
reque/ z ! ,secret>y may require = su*  
action z ! ,secret>y consid]s           
appropriate = c>ry+ out ! policies ( t  
section4 ,su* p]son %all also report to 
! ,secret>y :e!r su* p]son int5ds to    
comply & :e!r su* p]son has compli$ )   
su* reque/4 ,any report fil$ pursuant to
 ?is p>agraph %all be made available    
promptly = public inspection & copy+1   
except t in=mation reg>d+ ! quantity1   
description1 & value ( any goods or     
te*nology to :i* su* report relates may 
be kept confid5tial if ! ,secret>y      
det]m9es t disclosure !re( w\ld place ! 
,unit$ ,/ates p]son involv$ at a        
competitive disadvantage4 ,! ,secret>y  
%all p]iodically transmit summ>ies ( !  
in=mation conta9$ 9 su* reports to !    
,secret>y ( ,/ate = su* action z !      
,secret>y ( ,/ate1 9 consultation ) !   
,secret>y1 consid]s appropriate = c>ry+ 
out ! policies set =? 9 section #hcb4   

7c7 ,preemption ,! provisions ( ?is     
section & ! regulations issu$ pursuant  
!reto %all preempt any law1 rule1 or    
regulation ( any ( ! sev]al ,/ates or ! 
,di/rict ( ,columbia1 or any ( !        
t]ritories or possessions ( ! ,unit$    
,/ates1 or ( any gov]nm5tal subdivision 
!re(1 :i* law1 rule1 or regulation      
p]ta9s to p>ticipation 91 compliance )1 
implem5tation (1 or ! furni%+ (         
in=mation reg>d+ re/rictive trade       
practices or boycotts fo/]$ or impos$ by
 =eign c\ntries aga9/ o!r c\ntries      
fri5dly to ! ,unit$ ,/ates4  #hcd4      
,en=cem5t  7a7 ,crim9al p5alty ,a p]son 
:o willfully commits1 willfully attempts
 to commit1 or willfully conspires to   
commit1 or aids or abets 9 ! commission 
(1 an unlawful act section #hcc--  7#a7 
%all1 ^u conviction1 be f9$ n m ?an     
#a1jjj1jjj2 or  7#b7 if a natural p]son1
 may be imprison$ = n m ?an #bj ye>s1 or
 bo?4  7b7 ,civil p5alties ,! ,presid5t 
may impose ! foll[+ civil p5alties on a 
p]son :o violates section #hcc or any   

regulation issu$ "u ?is subtitle3  7#a7 
,a f9e ( n m ?an #cjj1jjj or an am\nt t 
is twice ! value ( ! transaction t is ! 
basis ( ! violation ) respect to :i* !  
p5alty is impos$1 :i*ev] is great]4     
7#b7 ,revocation ( a lic5se issu$ "u    
title ,i to ! p]son4  7#c7 ,a           
prohibition on ! p]son's ability to     
export1 reexport1 or transf] any items  
controll$ "u subtitle ,a4  7c7          
,proc$ures ,any civil p5alty or         
adm9i/rative sanction 7includ+ any      
susp5sion or revocation ( au?ority to   
export7 "u ?is section may be impos$    
only aft] notice & opportunity = an     
ag5cy he>+ on ! record 9 accordance )   
sections #eed ?r\gh #eeg ( title #e1    
,unit$ ,/ates ,code1 & %all be subject  
to judicial review 9 accordance ) *apt] 
#g ( su* title4  7d7 ,/&>ds = levels (  
civil p5alty ,! ,presid5t may by        
regulation provide /&>ds = e/abli%+     
levels ( civil p5alty "u ?is section    
bas$ ^u factors su* z ! s]i\sness ( !   
violation1 ! culpability ( ! violator1 &

 ! violator's record ( coop]ation ) !   
,gov]nm5t 9 disclos+ ! violation4  ,c   
,sanctions ,reg>d+ ,missile             
,prolif]ation & ,*emical & ,biological  
,weapons ,prolif]ation  #hda4 ,missile  
prolif]ation control violations  7a7    
,violations by ,unit$ ,/ates p]sons     
7#a7 ,sanctions  7,a7 ,sanctionable     
activity ,! ,presid5t %all impose !     
applicable sanctions describ$ 9         
subp>agraph 7,b7 if ! ,presid5t det]m9es
 t a ,unit$ ,/ates p]son kn[+ly--  7i7  
exports1 reexports1 or transf]s ( any   
item on ! ,,mtcr ,annex1 9 violation ( !
 provisions ( section #ch 7#bb ,u4,s4,c4
 #bggh7 or *apt] #g ( ! ,arms ,export   
,control ,act1 subtitle ,a1 or any      
regulations or ord]s issu$ "u any su*   
provisions2 or  7ii7 conspires to or    
attempts to engage 9 su* export1        
reexport1 or transf]4  7,b7 ,sanctions  
,! sanctions t apply to a ,unit$ ,/ates 
p]son "u subp>agraph 7,a7 are ! foll[+3 
7i7 ,if ! item on ! ,,mtcr ,annex       
involv$ 9 ! export1 reexport1 or transf]

 is missile equipm5t or te*nology )9    
category ,,ii ( ! ,,mtcr ,annex1 !n !   
,presid5t %all d5y to su* ,unit$ ,/ates 
p]son1 = a p]iod ( #b ye>s1 lic5ses = ! 
transf] ( missile equipm5t or te*nology 
controll$ "u subtitle ,a4  7ii7 ,if !   
item on ! ,,mtcr ,annex involv$ 9 !     
export1 reexport1 or transf] is missile 
equipm5t or te*nology )9 category ,i ( !
 ,,mtcr ,annex1 !n ! ,presid5t %all d5y 
to su* ,unit$ ,/ates p]son1 = a p]iod ( 
n less ?an #b ye>s1 all lic5ses = items 
! transf] ( :i* is controll$ "u subtitle
 ,a4  7#b7 ,discretion>y sanctions ,9 ! 
case ( any det]m9ation ref]r$ to 9      
p>agraph 7#a71 ! ,presid5t may pursue   
any o!r appropriate p5alties "u section 
#hbj4  7#c7 ,waiv] ,! ,presid5t may     
waive ! imposition ( sanctions "u       
p>agraph 7#a7 on a p]son ) respect to a 
product or s]vice if ! ,presid5t        
c]tifies to ! ,congress t--  7,a7 !     
product or s]vice is ess5tial to !      
national security ( ! ,unit$ ,/ates2 &  
7,b7 su* p]son is a sole s\rce suppli] (

 ! product or s]vice1 ! product or      
s]vice is n available f any alt]native  
reliable suppli]1 & ! ne$ = ! product or
 s]vice _c be met 9 a timely mann] by   
improv$ manufactur+ processes or        
te*nological developm5ts4  7b7 ,transf]s
 ( missile equipm5t or te*nology by     
=eign p]sons  7#a7 ,sanctions  7,a7     
,sanctionable activity ,subject to      
p>agraphs 7#c7 ?r\gh 7#g71 ! ,presid5t  
%all impose ! applicable sanctions "u   
subp>agraph 7,b7 on a =eign p]son if !  
,presid5t--  7i7 det]m9es t a =eign     
p]son kn[+ly-- 7,i7 exports1 reexports1 
or transf]s any ,,mtcr equipm5t or      
te*nology t contributes to ! design1    
developm5t1 or production ( missiles 9 a
 c\ntry t is n an ,,mtcr adh]5t & w\ld  
be1 if x 7 ,unit$ ,/ates-orig9 equipm5t 
or te*nology1 subject to ! jurisdiction 
( ! ,unit$ ,/ates "u subtitle ,a2       
7,,ii7 conspires to or attempts to      
engage 9 su* export1 reexport1 or       
transf]2 or  7,,iii7 facilitates su*    
export1 reexport1 or transf] by any o!r 

p]son2 or  7ii7 has made a det]m9ation )
 respect to ! =eign p]son "u section    
#gc7;a7 ( ! ,arms ,export ,control ,act4
  7,b7 ,sanctions ,! sanctions t apply  
to a =eign p]son "u subp>agraph 7,a7 are
 ! foll[+3 7i7 ,if ! item involv$ 9 !   
export1 reexport1 or transf] is )9      
category ,,ii ( ! ,,mtcr ,annex1 !n !   
,presid5t %all d5y1 = a p]iod ( #b ye>s1
 lic5ses = ! transf] to su* =eign p]son 
( missile equipm5t or te*nology !       
transf] ( :i* is controll$ "u subtitle  
,a4  7ii7 ,if ! item involv$ 9 ! export1
 reexport1 or transf] is )9 category ,i 
( ! ,,mtcr ,annex1 !n ! ,presid5t %all  
d5y1 = a p]iod ( n less ?an #b ye>s1    
lic5ses = ! transf] to su* =eign p]son (
 items ! transf] ( :i* is controll$ "u  
subtitle ,a4  7#b7 ,inapplicability )   
respect to ,,mtcr adh]5ts ,p>agraph 7#a7
 does n apply ) respect to-- 7,a7 any   
export1 reexport1 or transf] t is       
au?oriz$ by ! laws ( an ,,mtcr adh]5t1  
if su* au?orization is n obta9$ by      
misrepres5tation or fraud2 or  7,b7 any 

export1 reexport1 or transf] ( an item  
to an end us] 9 a c\ntry t is an ,,mtcr 
adh]5t4  7#c7 ,effect ( en=cem5t actions
 by ,,mtcr adh]5ts ,sanctions set =? 9  
p>agraph 7#a7 may n be impos$ "u ?is    
subsection on a p]son ) respect to acts 
describ$ 9 su* p>agraph or1 if su*      
sanctions are 9 effect aga9/ a p]son on 
acc\nt ( su* acts1 su* sanctions %all be
 t]m9at$1 if an ,,mtcr adh]5t is tak+   
judicial or o!r en=cem5t action aga9/ t 
p]son ) respect to su* acts1 or t p]son 
has be5 f\nd by ! gov]nm5t ( an ,,mtcr  
adh]5t to be innoc5t ( wrongdo+ )       
respect to su* acts4  7#d7 ,waiv] &     
report to ,congress  7,a7 ,waiv]        
au?ority ,! ,presid5t may waive !       
application ( p>agraph 7#a7 to a =eign  
p]son if ! ,presid5t det]m9es t su*     
waiv] is ess5tial to ! national security
 ( ! ,unit$ ,/ates4  7,b7 ,notification 
& report to ,congress ,9 ! ev5t t !     
,presid5t decides to apply ! waiv]      
describ$ 9 subp>agraph 7,a71 ! ,presid5t
 %all s notify ! appropriate            

congressional committees n less ?an #bj 
work+ days be=e issu+ ! waiv]4 ,su*     
notification %all include a report fully
 articulat+ ! rationale & circum/ances  
:i* l$ ! ,presid5t to apply ! waiv]4    
7#e7 ,additional waiv] ,! ,presid5t may 
waive ! imposition ( sanctions "u       
p>agraph 7#a7 on a p]son ) respect to a 
product or s]vice if ! ,presid5t        
c]tifies to ! appropriate congressional 
committees t--  7,a7 ! product or s]vice
 is ess5tial to ! national security ( ! 
,unit$ ,/ates2 &  7,b7 su* p]son is a   
sole s\rce suppli] ( ! product or       
s]vice1 ! product or s]vice is n        
available f any alt]native reliable     
suppli]1 & ! ne$ = ! product or s]vice  
_c be met 9 a timely mann] by improv$   
manufactur+ processes or te*nological   
developm5ts4  7#f7 ,exceptions ,!       
,presid5t %all n apply ! sanction "u ?is
 subsection prohibit+ ! importation ( ! 
products ( a =eign p]son--  7,a7 9 !    
case ( procurem5t ( def5se articles or  
def5se s]vices-- 7i7 "u exi/+ contracts 

or subcontracts1 includ+ ! ex]cise (    
options = production quantities to      
satisfy requirem5ts ess5tial to !       
national security ( ! ,unit$ ,/ates2    
7ii7 if ! ,presid5t det]m9es t ! p]son  
to :i* ! sanctions w\ld be appli$ is a  
sole s\rce suppli] ( ! def5se articles  
or def5se s]vices1 t ! def5se articles  
or def5se s]vices are ess5tial to !     
national security ( ! ,unit$ ,/ates1 & t
 alt]native s\rces are n readily or     
reasonably available2 or  7iii7 if !    
,presid5t det]m9es t su* articles or    
s]vices are ess5tial to ! national      
security ( ! ,unit$ ,/ates "u def5se    
coproduction agreem5ts or ,,nato        
,programs ( ,coop]ation2  7,b7 to       
products or s]vices provid$ "u contracts
 ent]$ into be=e ! date on :i* !        
,presid5t publi%es 8 int5tion to impose 
! sanctions2 or  7,c7 to-- 7i7 sp>e     
p>ts2  7ii7 compon5t p>ts1 b n f9i%$    
products1 ess5tial to ,unit$ ,/ates     
products or production2  7iii7 r\t9e    
s]vices & ma9t5ance ( products1 to !    

ext5t t alt]native s\rces are n readily 
or reasonably available2 or  7iv7       
in=mation & te*nology ess5tial to ,unit$
 ,/ates products or production4  7c7    
,def9itions ,9 ?is section3  7#a7       
,appropriate congressional committees ,!
 t]m appropriate congressional          
committees means-- 7,a7 ! ,committee on 
,=eign ,affairs ( ! ,h\se (             
,repres5tatives2 &  7,b7 ! ,committee on
 ,=eign ,relations & ! ,committee on    
,bank+1 ,h\s+1 & ,urban ,affairs ( !    
,s5ate4  7#b7 ,def5se articles2 def5se  
s]vices ,! t]ms def5se articles & def5se
 s]vices mean ^? items on ! ,unit$      
,/ates ,munitions ,li/ z def9$ 9 section
 #dg7g7 ( ! ,arms ,export ,control ,act 
7#bb ,u4,s4,c4 #bgid note74  7#c7       
,missile ,! t]m missile means a category
 ,i sy/em z def9$ 9 ! ,,mtcr ,annex4    
7#d7 ,missile te*nology control regime2 
,,mtcr ,! t]m ,missile ,te*nology       
,control ,regime or ,,mtcr means !      
policy /atem5t1 betwe5 ! ,unit$ ,/ates1 
! ,unit$ ,k+dom1 ! ,f$]al ,republic (   

,g]many1 ,france1 ,italy1 ,canada1 &    
,japan1 ann\nc$ on ,april #af1 #aihg1 to
 re/rict s5sitive missile-relevant      
transf]s bas$ on ! ,,mtcr ,annex1 & any 
am5dm5ts !reto4  7#e7 ,,mtcr adh]5t ,!  
t]m ,,mtcr adh]5t means a c\ntry t      
p>ticipates 9 ! ,,mtcr or t1 pursuant to
 an int]national und]/&+ to :i* ! ,unit$
 ,/ates is a p>ty1 controls ,,mtcr      
equipm5t or te*nology 9 accordance ) !  
crit]ia & /&>ds set =? 9 ! ,,mtcr4  7#f7
 ,,mtcr annex ,! t]m ,,mtcr ,annex means
 ! ,guidel9es & ,equipm5t & ,te*nology  
,annex ( ! ,,mtcr1 & any am5dm5ts !reto4
  7#g7 ,missile equipm5t or te*nology2  
,,mtcr equipm5t or te*nology ,! t]ms    
missile equipm5t or te*nology & ,,mtcr  
equipm5t or te*nology mean ^? items li/$
 9 category ,i or category ,,ii ( !     
,,mtcr ,annex4  #hdb4 ,*emical &        
biological weapons prolif]ation         
sanctions  7a7 ,imposition ( sanctions  
7#a7 ,det]m9ation by ! ,presid5t ,except
 z provid$ 9 subsection 7b77#b71 !      
,presid5t %all impose ! sanction        

describ$ 9 subsection 7c7 if ! ,presid5t
 det]m9es t a =eign p]son has kn[+ly &  
mat]ially contribut$--  7,a7 ?r\gh !    
export f ! ,unit$ ,/ates ( any item t is
 subject to ! jurisdiction ( ! ,unit$   
,/ates "u ?is subtitle2 or  7,b7 ?r\gh !
 export f any o!r c\ntry ( any item t   
w\ld be1 if !y 7 ,unit$ ,/ates goods or 
te*nology1 subject to ! jurisdiction ( !
 ,unit$ ,/ates "u ?is subtitle1  to !   
ef=ts by any =eign c\ntry1 project1 or  
entity describ$ 9 p>agraph 7#b7 to use1 
develop1 produce1 /ockpile1 or o!rwise  
acquire *emical or biological weapons4  
7#b7 ,c\ntries1 projects1 or entities   
receiv+ assi/ance ,p>agraph 7#a7 applies
 9 ! case (-- 7,a7 any =eign c\ntry t ! 
,presid5t det]m9es has1 at any "t aft]  
,janu>y #a1 #aihj--  7i7 us$ *emical or 
biological weapons 9 violation (        
int]national law2  7ii7 us$ le?al       
*emical or biological weapons aga9/ its 
own nationals2 or  7iii7 made sub/antial
 prep>ations to engage 9 ! activities   
describ$ 9 clause 7i7 or 7ii72  7,b7 any

 =eign c\ntry ^: gov]nm5t is det]m9$ =  
purposes ( section #iad7;c7 to be a     
gov]nm5t t has repeat$ly provid$ support
 = acts ( int]national t]rorism2 or     
7,c7 any o!r =eign c\ntry1 project1 or  
entity designat$ by ! ,presid5t =       
purposes ( ?is section4  7#c7 ,p]sons   
aga9/ :i* sanctions are to be impos$ ,a 
sanction %all be impos$ pursuant to     
p>agraph 7#a7 on-- 7,a7 ! =eign p]son ) 
respect to :i* ! ,presid5t makes !      
det]m9ation describ$ 9 t p>agraph2  7,b7
 any successor entity to t =eign p]son2 
&  7,c7 any =eign p]son t is a p>5t1    
subsidi>y1 or affiliate ( t =eign p]son 
if t p>5t1 subsidi>y1 or affiliate      
kn[+ly assi/$ 9 ! activities :i* 7 !    
basis ( t det]m9ation4  7b7             
,consultations ) & actions by =eign     
gov]nm5t ( jurisdiction  7#a7           
,consultations ,if ! ,presid5t makes !  
det]m9ations describ$ 9 subsection      
7a77#a7 ) respect to a =eign p]son1 !   
,congress urges ! ,presid5t to initiate 
consultations imm$iately ) ! gov]nm5t ) 

prim>y jurisdiction ov] t =eign p]son ) 
respect to ! imposition ( a sanction    
pursuant to ?is section4  7#b7 ,actions 
by gov]nm5t ( jurisdiction ,9 ord] to   
pursue su* consultations ) t gov]nm5t1 !
 ,presid5t may delay imposition ( a     
sanction pursuant to ?is section = a    
p]iod ( up to #ij days4 ,foll[+ su*     
consultations1 ! ,presid5t %all impose !
 sanction unless ! ,presid5t det]m9es & 
c]tifies to ! appropriate congressional 
committees t ! ,gov]nm5t has tak5       
specific & effective actions1 includ+   
appropriate p5alties1 to t]m9ate !      
involvem5t ( ! =eign p]son 9 !          
activities describ$ 9 subsection        
7a77#a74 ,! ,presid5t may delay         
imposition ( ! sanction = an additional 
p]iod ( up to #ij days if ! ,presid5t   
det]m9es & c]tifies to ! ,congress t !  
gov]nm5t is 9 ! process ( tak+ ! actions
 describ$ 9 ! prec$+ s5t5ce4  7#c7      
,report to ,congress ,! ,presid5t %all  
report to ! appropriate congressional   
committees1 n lat] ?an #ij days aft]    

mak+ a det]m9ation "u subsection        
7a77#a71 on ! /atus ( consultations ) ! 
appropriate gov]nm5t "u ?is subsection1 
& ! basis = any det]m9ation "u p>agraph 
7#b7 ( ?is subsection t su* gov]nm5t has
 tak5 specific corrective actions4  7c7 
,sanction  7#a7 ,description ( sanction 
,! sanction to be impos$ pursuant to    
subsection 7a77#a7 is1 except z provid$ 
t ! ,unit$ ,/ates ,gov]nm5t %all n      
procure1 or ent] into any contract = !  
procurem5t (1 any goods or s]vices f any
 p]son describ$ 9 subsection 7a77#c74   
7#b7 ,exceptions ,! ,presid5t %all n be 
requir$ to apply or ma9ta9 a sanction "u
 ?is section-- 7,a7 9 ! case (          
procurem5t ( def5se articles or def5se  
s]vices--  7i7 "u exi/+ contracts or    
subcontracts1 includ+ ! ex]cise (       
options = production quantities to      
satisfy ,unit$ ,/ates op]ational milit>y
 requirem5ts2  7ii7 if ! ,presid5t      
det]m9es t ! p]son or o!r entity to :i* 
! sanctions w\ld o!rwise be appli$ is a 
sole s\rce suppli] ( ! def5se articles  

or def5se s]vices1 t ! def5se articles  
or def5se s]vices are ess5tial1 & t     
alt]native s\rces are n readily or      
reasonably available2 or  7iii7 if !    
,presid5t det]m9es t su* articles or    
s]vices are ess5tial to ! national      
security "u def5se coproduction         
agreem5ts2  7,b7 to products or s]vices 
provid$ "u contracts ent]$ into be=e !  
date on :i* ! ,presid5t publi%es 8      
int5tion to impose sanctions2  7,c7 to--
 7i7 sp>e p>ts2  7ii7 compon5t p>ts1 b n
 f9i%$ products1 ess5tial to ,unit$     
,/ates products or production2 or  7iii7
 r\t9e s]vic+ & ma9t5ance ( products1 to
 ! ext5t t alt]native s\rces are n      
readily or reasonably available2  7,d7  
to in=mation & te*nology ess5tial to    
,unit$ ,/ates products or production2 or
  7,e7 to m$ical or o!r humanit>ian     
items4  7d7 ,t]m9ation ( sanctions ,a   
sanction impos$ pursuant to ?is section 
%all apply = a p]iod ( at lea/ #ab mon?s
 foll[+ ! imposition ( "o sanction &    
%all cease to apply !reaft] only if !   

,presid5t det]m9es & c]tifies to !      
appropriate congressional committees t  
reliable in=mation indicates t ! =eign  
p]son ) respect to :i* ! det]m9ation 0  
made "u subsection 7a77#a7 has ceas$ to 
aid or abet any =eign gov]nm5t1 project1
 or entity 9 its ef=ts to acquire       
*emical or biological weapons capability
 z describ$ 9 t subsection4  7e7 ,waiv] 
7#a7 ,crit]ion = waiv] ,! ,presid5t may 
waive ! application ( any sanction      
impos$ on any p]son pursuant to ?is     
section if ! ,presid5t det]m9es &       
c]tifies to ! appropriate congressional 
committees t su* waiv] is important to !
 national security int]e/s ( ! ,unit$   
,/ates4  7#b7 ,notification ( & report  
to ,congress ,if ! ,presid5t decides to 
ex]cise ! waiv] au?ority provid$ 9      
p>agraph 7#a71 ! ,presid5t %all s notify
 ! appropriate congressional committees 
n less ?an #bj days be=e ! waiv] takes  
effect4 ,su* notification %all include a
 report fully articulat+ ! rationale &  
circum/ances :i* l$ ! ,presid5t to      

ex]cise ! waiv] au?ority4  7f7          
,def9itions ,9 ?is section3 7#a7        
,appropriate congressional committees ,!
 t]m appropriate congressional          
committees means--  7,a7 ! ,committee on
 ,=eign ,affairs ( ! ,h\se (            
,repres5tatives2 &  7,b7 ! ,committee on
 ,=eign ,relations & ! ,committee on    
,bank+1 ,h\s+1 & ,urban ,affairs ( !    
,s5ate4  7#b7 ,def5se articles2 def5se  
s]vices ,! t]ms def5se articles & def5se
 s]vices mean ^? items on ! ,unit$      
,/ates ,munitions ,li/ or are o!rwise   
controll$ "u ! ,arms ,export ,control   
,act4  ,d ,adm9i/rative au?orities      
#hea4 ,"u ,secret>y ( ,comm]ce =        
,indu/ry & ,security  7a7 ,appo9tm5t    
7#a7 ,9 g5]al ,! ,presid5t %all appo9t1 
by & ) ! advice & cons5t ( ! ,s5ate1 an 
,"u ,secret>y ( ,comm]ce = ,indu/ry &   
,security :o %all c>ry out all !        
functions ( ! ,secret>y "u ?is title &  
su* o!r provisions ( law t relate to !  
implem5tation ( ! dual-use export sy/em4
  7#b7 ,assi/ant ,secret>ies ( ,comm]ce 

,! ,presid5t %all appo9t1 by & ) !      
advice & cons5t ( ! ,s5ate1 two         
,assi/ant ,secret>ies ( ,comm]ce to     
assi/ ! ,"u ,secret>y 9 c>ry+ out !     
functions describ$ 9 p>agraph 7#a74  7b7
 ,delegation  7#a7 ,to ,secret>y ,!     
,presid5t %all cont9ue ! delegation (   
functions to ! ,secret>y to adm9i/] &   
en=ce ! export control sy/em au?oriz$ by
 ?is title t 7 delegat$ to ! ,secret>y z
 ( ! day be=e ! date ( ! enactm5t ( ?is 
,act4  7#b7 ,to ,bureau ( ,indu/ry &    
,security ,! ,secret>y %all fur!r       
delegate implem5tation ( ! au?orities   
set =? 9 ?is title to ! ,bureau (       
,indu/ry & ,security )9 ! ,dep>tm5t (   
,comm]ce4