Collapse to view only § 4820. Enforcement
- § 4811. Statement of policy
- § 4812. Authority of the President
- § 4813. Additional authorities
- § 4814. Administration of export controls
- § 4815. Licensing
- § 4816. Compliance assistance
- § 4817. Requirements to identify and control the export of emerging and foundational technologies
- § 4818. Review relating to countries subject to comprehensive United States arms embargo
- § 4819. Penalties
- § 4820. Enforcement
- § 4821. Administrative procedure
- § 4822. Review of interagency dispute resolution process
- § 4823. Consultation with other agencies on commodity classification
- § 4824. Annual report to Congress
- § 4825. Effect on other acts
- § 4826. Transition provisions
§ 4811. Statement of policyThe following is the policy of the United States:
(1) To use export controls only after full consideration of the impact on the economy of the United States and only to the extent necessary—
(A) to restrict the export of items which would make a significant contribution to the military potential of any other country or combination of countries which would prove detrimental to the national security of the United States; and
(B) to restrict the export of items if necessary to further significantly the foreign policy of the United States or to fulfill its declared international obligations.
(2) The national security and foreign policy of the United States require that the export, reexport, and in-country transfer of items, and specific activities of United States persons, wherever located, be controlled for the following purposes:
(A) To control the release of items for use in—
(i) the proliferation of weapons of mass destruction or of conventional weapons;
(ii) the acquisition of destabilizing numbers or types of conventional weapons;
(iii) acts of terrorism;
(iv) military programs that could pose a threat to the security of the United States or its allies; or
(v) activities undertaken specifically to cause significant interference with or disruption of critical infrastructure.
(B) To preserve the qualitative military superiority of the United States.
(C) To strengthen the United States defense industrial base.
(D) To carry out the foreign policy of the United States, including the protection of human rights and the promotion of democracy.
(E) To carry out obligations and commitments under international agreements and arrangements, including multilateral export control regimes.
(F) To facilitate military interoperability between the United States and its North Atlantic Treaty Organization (NATO) and other close allies.
(G) To ensure national security controls are tailored to focus on those core technologies and other items that are capable of being used to pose a serious national security threat to the United States.
(3) The national security of the United States requires that the United States maintain its leadership in the science, technology, engineering, and manufacturing sectors, including foundational technology that is essential to innovation. Such leadership requires that United States persons are competitive in global markets. The impact of the implementation of this subchapter on such leadership and competitiveness must be evaluated on an ongoing basis and applied in imposing controls under sections 4812 and 4813 of this title to avoid negatively affecting such leadership.
(4) The national security and foreign policy of the United States require that the United States participate in multilateral organizations and agreements regarding export controls on items that are consistent with the policy of the United States, and take all the necessary steps to secure the adoption and consistent enforcement, by the governments of such countries, of export controls on items that are consistent with such policy.
(5) Export controls should be coordinated with the multilateral export control regimes. Export controls that are multilateral are most effective, and should be tailored to focus on those core technologies and other items that are capable of being used to pose a serious national security threat to the United States and its allies.
(6) Export controls applied unilaterally to items widely available from foreign sources generally are less effective in preventing end-users from acquiring those items. Application of unilateral export controls should be limited for purposes of protecting specific United States national security and foreign policy interests.
(7) The effective administration of export controls requires a clear understanding both inside and outside the United States Government of which items are controlled and an efficient process should be created to regularly update the controls, such as by adding or removing such items.
(8) The export control system must ensure that it is transparent, predictable, and timely, has the flexibility to be adapted to address new threats in the future, and allows seamless access to and sharing of export control information among all relevant United States national security and foreign policy agencies.
(9) Implementation and enforcement of United States export controls require robust capabilities in monitoring, intelligence, and investigation, appropriate penalties for violations, and the ability to swiftly interdict unapproved transfers.
(10) Export controls complement and are a critical element of the national security policies underlying the laws and regulations governing foreign direct investment in the United States, including controlling the transfer of critical technologies to certain foreign persons. Thus, the President, in coordination with the Secretary, the Secretary of Defense, the Secretary of State, the Secretary of Energy, and the heads of other Federal agencies, as appropriate, should have a regular and robust process to identify the emerging and other types of critical technologies of concern and regulate their release to foreign persons as warranted regardless of the nature of the underlying transaction. Such identification efforts should draw upon the resources and expertise of all relevant parts of the United States Government, industry, and academia. These efforts should be in addition to traditional efforts to modernize and update the lists of controlled items under the multilateral export control regimes.
(11) The authority under this subchapter may be exercised only in furtherance of all of the objectives set forth in paragraphs (1) through (10).
(Pub. L. 115–232, div. A, title XVII, § 1752, Aug. 13, 2018, 132 Stat. 2210.)
§ 4812. Authority of the President
(a) AuthorityIn order to carry out the policy set forth in paragraphs (1) through (10) of section 4811 of this title, the President shall control—
(1) the export, reexport, and in-country transfer of items subject to the jurisdiction of the United States, whether by United States persons or by foreign persons; and
(2) the activities of United States persons, wherever located, relating to specific—
(A) nuclear explosive devices;
(B) missiles;
(C) chemical or biological weapons;
(D) whole plants for chemical weapons precursors;
(E) foreign maritime nuclear projects; and
(F) foreign military, security, or intelligence services.
(b) RequirementsIn exercising authority under this subchapter to carry out the policy set forth in paragraphs (1) through (10) of section 4811 of this title, the President shall—
(1) regulate the export, reexport, and in-country transfer of items described in subsection (a)(1) of United States persons or foreign persons;
(2) regulate the activities described in subsection (a)(2) of United States persons, wherever located;
(3) seek to secure the cooperation of other governments and multilateral organizations to impose control systems that are consistent, to the extent possible, with the controls imposed under subsection (a);
(4) maintain the leadership of the United States in science, engineering, technology research and development, manufacturing, and foundational technology that is essential to innovation;
(5) protect United States technological advances by prohibiting unauthorized technology transfers to foreign persons in the United States or outside the United States, particularly with respect to countries that may pose a significant threat to the national security of the United States;
(6) strengthen the United States industrial base, both with respect to current and future defense requirements; and
(7) enforce the controls through means such as regulations, requirements for compliance, lists of controlled items, lists of foreign persons who threaten the national security or foreign policy of the United States, and guidance in a form that facilitates compliance by United States persons and foreign persons, in particular academic institutions, scientific and research establishments, and small- and medium-sized businesses.
(c) Application of controls
(Pub. L. 115–232, div. A, title XVII, § 1753, Aug. 13, 2018, 132 Stat. 2211; Pub. L. 117–263, div. E, title LV, § 5589(b), Dec. 23, 2022, 136 Stat. 3380.)
§ 4813. Additional authorities
(a) In generalIn carrying out this subchapter on behalf of the President, the Secretary, in consultation with the Secretary of State, the Secretary of Defense, the Secretary of Energy, and the heads of other Federal agencies as appropriate, shall—
(1) establish and maintain a list of items that are controlled under this subchapter;
(2) establish and maintain a list of foreign persons and end-uses that are determined to be a threat to the national security and foreign policy of the United States pursuant to the policy set forth in section 4811(2)(A) of this title;
(3) prohibit unauthorized exports, reexports, and in-country transfers of controlled items, including to foreign persons in the United States or outside the United States;
(4) restrict exports, reexports, and in-country transfers of any controlled items to any foreign person or end-use listed under paragraph (2);
(5) require licenses or other authorizations, as appropriate, for exports, reexports, and in-country transfers of controlled items, including—
(A) imposing conditions or restrictions on United States persons and foreign persons with respect to such licenses or other authorizations; and
(B) suspending or revoking such licenses or authorizations;
(6) establish a process for an assessment to determine whether a foreign item is comparable in quality to an item controlled under this subchapter, and is available in sufficient quantities to render the United States export control of that item or the denial of a license ineffective, including a mechanism to address that disparity;
(7) require measures for compliance with the export controls established under this subchapter;
(8) require and obtain such information from United States persons and foreign persons as is necessary to carry out this subchapter;
(9) require, to the extent feasible, identification of items subject to controls under this subchapter in order to facilitate the enforcement of such controls;
(10) inspect, search, detain, or seize, or impose temporary denial orders with respect to items, in any form, that are subject to controls under this subchapter, or conveyances on which it is believed that there are items that have been, are being, or are about to be exported, reexported, or in-country transferred in violation of this subchapter;
(11) monitor shipments and other means of transfer;
(12) keep the public appropriately apprised of changes in policy, regulations, and procedures established under this subchapter;
(13) appoint technical advisory committees in accordance with the Federal Advisory Committee Act;
(14) create, as warranted, exceptions to licensing requirements in order to further the objectives of this subchapter;
(15) establish and maintain processes to inform persons, either individually by specific notice or through amendment to any regulation or order issued under this subchapter, that a license from the Bureau of Industry and Security of the Department of Commerce is required to export; and
(16) undertake any other action as is necessary to carry out this subchapter that is not otherwise prohibited by law.
(b) Relationship to IEEPA
(c) Countries supporting international terrorism
(1) Commerce license requirement
(A) In generalA license shall be required for the export, reexport, or in-country transfer of items, the control of which is implemented pursuant to subsection (a) by the Secretary, to a country if the Secretary of State has made the following determinations:
(i) The government of such country has repeatedly provided support for acts of international terrorism.
(ii) The export, reexport, or in-country transfer of such items could make a significant contribution to the military potential of such country, including its military logistics capability, or could enhance the ability of such country to support acts of international terrorism.
(B) Determination under other provisions of law
(2) Notification to Congress
(A) In general
(B) ContentsThe Secretary of State shall include in the notification required under subparagraph (A)—
(i) a detailed description of the items to be offered, including a brief description of the capabilities of any item for which a license to export, reexport, or in-country transfer the items is sought;
(ii) the reasons why the foreign country, person, or entity to which the export, reexport, or in-country transfer is proposed to be made has requested the items under the export, reexport, or in-country transfer, and a description of the manner in which such country, person, or entity intends to use such items;
(iii) the reasons why the proposed export, reexport, or in-country transfer is in the national interest of the United States;
(iv) an analysis of the impact of the proposed export, reexport, or in-country transfer on the military capabilities of the foreign country, person, or entity to which such transfer would be made;
(v) an analysis of the manner in which the proposed export, reexport, or in-country transfer would affect the relative military strengths of countries in the region to which the items that are the subject of such export, reexport, or in-country transfer would be delivered and whether other countries in the region have comparable kinds and amounts of items; and
(vi) an analysis of the impact of the proposed export, reexport, or in-country transfer on the relations of the United States with the countries in the region to which the items that are the subject of such export, reexport, or in-country transfer would be delivered.
(3) Publication in Federal Register
(4) Rescission of determinationA determination of the Secretary of State under paragraph (1)(A)(i) may not be rescinded unless the President submits to the Speaker of the House of Representatives, the chairman of the Committee on Foreign Affairs, and the chairman of the Committee on Banking, Housing, and Urban Affairs and the chairman of the Committee on Foreign Relations of the Senate—
(A) before the proposed rescission would take effect, a report certifying that—
(i) there has been a fundamental change in the leadership and policies of the government of the country concerned;
(ii) that government is not supporting acts of international terrorism; and
(iii) that government has provided assurances that it will not support acts of international terrorism in the future; or
(B) at least 45 days before the proposed rescission would take effect, a report justifying the rescission and certifying that—
(i) the government concerned has not provided any support for acts international terrorism during the preceding 6-month period; and
(ii) the government concerned has provided assurances that it will not support acts of international terrorism in the future.
(d) Enhanced controls
(1) In generalIn furtherance of section 4812(a) of this title, the President shall, except to the extent authorized by a statute or regulation administered by a Federal department or agency other than the Department of Commerce, require a United States person, wherever located, to apply for and receive a license from the Department of Commerce for—
(A) the export, reexport, or in-country transfer of items described in paragraph (2), including items that are not subject to control under this subchapter; and
(B) other activities that may support the design, development, production, use, operation, installation, maintenance, repair, overhaul, or refurbishing of, or for the performance of services relating to, any such items.
(2) Items describedThe items described in this paragraph include—
(A) nuclear explosive devices;
(B) missiles;
(C) chemical or biological weapons;
(D) whole plants for chemical weapons precursors; and
(E) foreign maritime nuclear projects that would pose a risk to the national security or foreign policy of the United States.
(e) Additional prohibitions
(f) License review standards
(Pub. L. 115–232, div. A, title XVII, § 1754, Aug. 13, 2018, 132 Stat. 2212.)
§ 4814. Administration of export controls
(a) In general
(b) PurposesThe purposes of this section include to—
(1) advise the President with respect to—
(A) identifying specific threats to the national security and foreign policy that the authority of this subchapter may be used to address; and
(B) exercising the authority under this subchapter to implement policies, regulations, procedures, and actions that are necessary to effectively counteract those threats;
(2) review and approve—
(A) criteria for including items on, and removing such an item from, a list of controlled items established under this subchapter;
(B) an interagency procedure for compiling and amending any list described in subparagraph (A);
(C) criteria for including a person on a list of persons to whom exports, reexports, and in-country transfers of items are prohibited or restricted under this subchapter;
(D) standards for compliance by persons subject to controls under this subchapter; and
(E) policies and procedures for the end-use monitoring of exports, reexports, and in-country transfers of items controlled under this subchapter; and
(3) benefit from the inherent equities, experience, and capabilities of the Federal officials described in subsection (a).
(c) Sense of Congress
(Pub. L. 115–232, div. A, title XVII, § 1755, Aug. 13, 2018, 132 Stat. 2216.)
§ 4815. Licensing
(a) In general
The Secretary shall, consistent with delegations as described in section 4814 of this title, establish a procedure to license or otherwise authorize the export, reexport, and in-country transfer of items controlled under this subchapter in order to carry out the policy set forth in section 4811 of this title and the requirements set forth in section 4812(b) of this title. The procedure shall ensure that—
(1) license applications and other requests for authorization are considered and decisions made with the participation of appropriate Federal agencies, as appropriate; and
(2) licensing decisions are made in an expeditious manner, with transparency to applicants on the status of license and other authorization processing and the reason for denying any license or request for authorization.
(b) Sense of Congress
(c) Fees
(d) Additional procedural requirements
(1) In general
(2) Information from applicant
(3) Significantly negative impact defined
A significant negative impact on the United States defense industrial base is the following:
(A) A reduction in the availability of an item produced in the United States that is likely to be acquired by the Department of Defense or other Federal department or agency for the advancement of the national security of the United States, or for the production of an item in the United States for the Department of Defense or other agency for the advancement of the national security of the United States.
(B) A reduction in the production in the United States of an item that is the result of research and development carried out, or funded by, the Department of Defense or other Federal department or agency to advance the national security of the United States, or a federally funded research and development center.
(C) A reduction in the employment of United States persons whose knowledge and skills are necessary for the continued production in the United States of an item that is likely to be acquired by the Department of Defense or other Federal department or agency for the advancement of the national security of the United States.
(Pub. L. 115–232, div. A, title XVII, § 1756, Aug. 13, 2018, 132 Stat. 2217.)
§ 4816. Compliance assistance
(a) System for seeking assistance
(b) Security clearances
(c) Assistance for certain businesses
(1) In general
(2) Contents
(Pub. L. 115–232, div. A, title XVII, § 1757, Aug. 13, 2018, 132 Stat. 2218; Pub. L. 116–283, div. A, title X, § 1081(d)(7), Jan. 1, 2021, 134 Stat. 3874.)
§ 4817. Requirements to identify and control the export of emerging and foundational technologies
(a) Identification of technologies
(1) In generalThe President shall establish and, in coordination with the Secretary, the Secretary of Defense, the Secretary of Energy, the Secretary of State, and the heads of other Federal agencies as appropriate, lead, a regular, ongoing interagency process to identify emerging and foundational technologies that—
(A) are essential to the national security of the United States; and
(B) are not critical technologies described in clauses (i) through (v) of section 4565(a)(6)(A) of this title.
(2) ProcessThe interagency process established under subsection (a) shall—
(A) be informed by multiple sources of information, including—
(i) publicly available information;
(ii) classified information, including relevant information provided by the Director of National Intelligence;
(iii) information relating to reviews and investigations of transactions by the Committee on Foreign Investment in the United States under section 4565 of this title; and
(iv) information provided by the advisory committees established by the Secretary to advise the Under Secretary of Commerce for Industry and Security on controls under the Export Administration Regulations, including the Emerging Technology and Research Advisory Committee;
(B) take into account—
(i) the development of emerging and foundational technologies in foreign countries;
(ii) the effect export controls imposed pursuant to this section may have on the development of such technologies in the United States; and
(iii) the effectiveness of export controls imposed pursuant to this section on limiting the proliferation of emerging and foundational technologies to foreign countries; and
(C) include a notice and comment period.
(b) Commerce controls
(1) In general
(2) Levels of control
(A) In general
(B) ConsiderationsIn determining under subparagraph (A) the level of control appropriate for technology described in paragraph (1), the Secretary shall take into account—
(i) lists of countries to which exports from the United States are restricted; and
(ii) the potential end uses and end users of the technology.
(C) Minimum requirements
(3) Review of license applications
(A) Procedures
(B) Consideration of information relating to national security
(C) Disclosures relating to collaborative arrangements
(4) Exceptions
(A) Mandatory exceptionsThe Secretary may not control under this subsection the export of any technology—
(i) described in section 1702(b) of this title; or
(ii) if the regulation of the export of that technology is prohibited under any other provision of law.
(B) Regulatory exceptions
(C) Additional exceptionsThe Secretary shall not be required to impose under paragraph (1) a requirement for a license or other authorization with respect to the export, reexport, or in-country transfer of technology described in paragraph (1) pursuant to any of the following transactions:
(i) The sale or license of a finished item and the provision of associated technology if the United States person that is a party to the transaction generally makes the finished item and associated technology available to its customers, distributors, or resellers.
(ii) The sale or license to a customer of a product and the provision of integration services or similar services if the United States person that is a party to the transaction generally makes such services available to its customers.
(iii) The transfer of equipment and the provision of associated technology to operate the equipment if the transfer could not result in the foreign person using the equipment to produce critical technologies (as defined in section 4565(a) of this title).
(iv) The procurement by the United States person that is a party to the transaction of goods or services, including manufacturing services, from a foreign person that is a party to the transaction, if the foreign person has no rights to exploit any technology contributed by the United States person other than to supply the procured goods or services.
(v) Any contribution and associated support by a United States person that is a party to the transaction to an industry organization related to a standard or specification, whether in development or declared, including any license of or commitment to license intellectual property in compliance with the rules of any standards organization (as defined by the Secretary by regulation).
(c) Multilateral controls
(1) In general
(2) Items on commerce control list or United States munitions list
(d) Report to Committee on Foreign Investment in the United States
(e) Report to CongressNot less frequently than every 180 days, the Secretary, in coordination with the Secretary of Defense, the Secretary of State, and the heads of other Federal agencies, as appropriate, shall submit a report on the results of actions taken pursuant to this section, including actions taken pursuant to subsections (a), (b), and (c), to—
(1) the Committee on Banking, Housing, and Urban Affairs, the Committee on Foreign Relations, the Committee on Armed Services, and the Select Committee on Intelligence of the Senate; and
(2) the Committee on Financial Services, the Committee on Foreign Affairs, the Committee on Armed Services, and the Permanent Select Committee on Intelligence of the House of Representatives.
(f) Modifications to Emerging Technology and Research Advisory Committee
(1) In general
(2) DutiesThe Secretary—
(A) shall revise the duties of the Emerging Technology and Research Advisory Committee to include identifying emerging and foundational technologies that may be developed over a period of 5 years or 10 years; and
(B) may revise the duties of the Advisory Committee to include identifying trends in—
(i) the ownership by foreign persons and foreign governments of such technologies;
(ii) the types of transactions related to such technologies engaged in by foreign persons and foreign governments;
(iii) the blending of private and government investment in such technologies; and
(iv) efforts to obfuscate ownership of such technologies or to otherwise circumvent the controls established under this section.
(3) Meetings
(A) Frequency
(B) Attendance
(4) Classified information
(5) Applicability of Federal Advisory Committee Act
(6) Report
(g) Rule of ConstructionNothing in this chapter shall be construed to alter or limit—
(1) the authority of the President or the Secretary of State to designate items as defense articles and defense services for the purposes of the Arms Export Control Act (22 U.S.C. 2751 et seq.) or to otherwise regulate such items; or
(2) the authority of the President under the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.), the Nuclear Non-Proliferation Act of 1978 (22 U.S.C. 3201 et seq.), the Energy Reorganization Act of 1974 (42 U.S.C. 5801 et seq.), or the Export Administration Act of 1979 (50 U.S.C. 4601 et seq.) (as continued in effect pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.)) or any other provision of law relating to the control of exports.
(Pub. L. 115–232, div. A, title XVII, § 1758, Aug. 13, 2018, 132 Stat. 2218.)
§ 4818. Review relating to countries subject to comprehensive United States arms embargo
(a) In general
The Secretary, the Secretary of Defense, the Secretary of State, the Secretary of Energy, and the heads of other Federal agencies as appropriate, shall conduct a review of license requirements for exports, reexports, or in-country transfers of items to countries subject to a comprehensive United States arms embargo, including, as appropriate—
(1) the scope of controls under title 15, Code of Federal Regulations, that apply to exports, reexports, and in-country transfers for military end uses and military end users in countries that are subject to a comprehensive United States arms embargo and countries that are subject to a United Nations arms embargo; and
(2) entries on the Commerce Control List maintained under title 15, Code of Federal Regulations, that are not subject to a license requirement for the export, reexport, or in-country transfer of items to countries subject to a comprehensive United States arms embargo.
(b) Implementation of results of review
(Pub. L. 115–232, div. A, title XVII, § 1759, Aug. 13, 2018, 132 Stat. 2223; Pub. L. 116–283, div. A, title X, § 1081(d)(8), Jan. 1, 2021, 134 Stat. 3874.)
§ 4819. Penalties
(a) Unlawful acts
(1) In general
(2) Specific unlawful actsThe unlawful acts described in this paragraph are the following:
(A) No person may engage in any conduct prohibited by or contrary to, or refrain from engaging in any conduct required by this subchapter, the Export Administration Regulations, or any order, license or authorization issued thereunder.
(B) No person may cause or aid, abet, counsel, command, induce, procure, permit, or approve the doing of any act prohibited, or the omission of any act required by this subchapter, the Export Administration Regulations, or any order, license or authorization issued thereunder.
(C) No person may solicit or attempt a violation of this subchapter, the Export Administration Regulations, or any order, license or authorization issued thereunder.
(D) No person may conspire or act in concert with one or more other persons in any manner or for any purpose to bring about or to do any act that constitutes a violation of this subchapter, the Export Administration Regulations, or any order, license or authorization issued thereunder.
(E) No person may order, buy, remove, conceal, store, use, sell, loan, dispose of, transfer, transport, finance, forward, or otherwise service, in whole or in part, or conduct negotiations to facilitate such activities for, any item exported or to be exported from the United States, or that is otherwise subject to the Export Administration Regulations, with knowledge that a violation of this subchapter, the Export Administration Regulations, or any order, license or authorization issued thereunder, has occurred, is about to occur, or is intended to occur in connection with the item unless valid authorization is obtained therefor.
(F) No person may make any false or misleading representation, statement, or certification, or falsify or conceal any material fact, either directly to the Department of Commerce, or an official of any other United States agency, including the Department of Homeland Security and the Department of Justice, or indirectly through any other person—
(i) in the course of an investigation or other action subject to the Export Administration Regulations;
(ii) in connection with the preparation, submission, issuance, use, or maintenance of any export control document or any report filed or required to be filed pursuant to the Export Administration Regulations; or
(iii) for the purpose of or in connection with effecting any export, reexport, or in-country transfer of an item subject to the Export Administration Regulations or a service or other activity of a United States person described in section 4813 of this title.
(G) No person may engage in any transaction or take any other action with intent to evade the provisions of this subchapter, the Export Administration Regulations, or any order, license, or authorization issued thereunder.
(H) No person may fail or refuse to comply with any reporting or recordkeeping requirements of the Export Administration Regulations or of any order, license, or authorization issued thereunder.
(I) Except as specifically authorized in the Export Administration Regulations or in writing by the Department of Commerce, no person may alter any license, authorization, export control document, or order issued under the Export Administration Regulations.
(J) No person may take any action that is prohibited by a denial order or a temporary denial order issued by the Department of Commerce to prevent imminent violations of this subchapter, the Export Administration Regulations, or any order, license or authorization issued thereunder.
(3) Additional requirements
(b) Criminal penaltyA person who willfully commits, willfully attempts to commit, or willfully conspires to commit, or aids and abets in the commission of, an unlawful act described in subsection (a)—
(1) shall be fined not more than $1,000,000; and
(2) in the case of the individual, shall be imprisoned for not more than 20 years, or both.
(c) Civil penalties
(1) AuthorityThe Secretary may impose the following civil penalties on a person for each violation by that person of this subchapter or any regulation, order, or license issued under this subchapter, for each violation:
(A) A fine of not more than $300,000 or an amount that is twice the value of the transaction that is the basis of the violation with respect to which the penalty is imposed, whichever is greater.
(B) Revocation of a license issued under this subchapter to the person.
(C) A prohibition on the person’s ability to export, reexport, or in-country transfer any items controlled under this subchapter.
(2) Procedures
(3) Standards for levels of civil penalty
(d) Criminal forfeiture
(1) In generalAny person who is convicted under subsection (b) of a violation of a control imposed under section 4812 of this title (or any regulation, order, or license issued with respect to such control) shall, in addition to any other penalty, forfeit to the United States any of the person’s property—
(A) used or intended to be used, in any manner, to commit or facilitate the violation;
(B) constituting or traceable to the gross proceeds taken, obtained, or retained, in connection with or as a result of the violation; or
(C) constituting an item or technology that is exported or intended to be exported in violation of this subchapter.1
1 See References in Text note below.
(2) Procedures
(e) Prior convictions
(1) License bar
(A) In generalThe Secretary may—
(i) deny the eligibility of any person convicted of a criminal violation described in subparagraph (B) to export, reexport, or in-country transfer outside the United States any item, whether or not subject to controls under this subchapter, for a period of up to 10 years beginning on the date of the conviction; and
(ii) revoke any license or other authorization to export, reexport, or in-country transfer items that was issued under this subchapter and in which such person has an interest at the time of the conviction.
(B) ViolationsThe violations referred to in subparagraph (A) are any criminal violations of, or criminal attempt or conspiracy to violate—
(i) this subchapter (or any regulation, license, or order issued under this subchapter);
(ii) any regulation, license, or order issued under the International Emergency Economic Powers Act [50 U.S.C. 1701 et seq.];
(iii) section 371, 554, 793, 794, or 798 of title 18;
(iv)section 1001 of title 18;
(v)section 783(b) of this title; or
(vi)section 2778 of title 22.
(2) Application to other parties
(f) Other authoritiesNothing in subsection (c), (d), or (e) limits—
(1) the availability of other administrative or judicial remedies with respect to violations of this subchapter, or any regulation, order, license or other authorization issued under this subchapter;
(2) the authority to compromise and settle administrative proceedings brought with respect to violations of this subchapter, or any regulation, order, license, or other authorization issued under this subchapter; or
(3) the authority to compromise, remit or mitigate seizures and forfeitures pursuant to section 401(b) of title 22.
(Pub. L. 115–232, div. A, title XVII, § 1760, Aug. 13, 2018, 132 Stat. 2223.)
§ 4820. Enforcement
(a) AuthoritiesIn order to enforce this subchapter, the Secretary, on behalf of the President, may exercise, in addition to relevant enforcement authorities of other Federal agencies, the authority to—
(1) issue orders and guidelines;
(2) require, inspect, and obtain books, records, and any other information from any person subject to the provisions of this subchapter;
(3) administer oaths or affirmations and by subpoena require any person to appear and testify or to appear and produce books, records, and other writings, or both;
(4) conduct investigations within the United States and outside the United States consistent with applicable law;
(5) inspect, search, detain, seize, or issue temporary denial orders with respect to items, in any form, that are subject to controls under this subchapter, or conveyances on which it is believed that there are items that have been, are being, or are about to be exported, reexported, or in-country transferred in violation of this subchapter, or any regulations, order, license, or other authorization issued thereunder;
(6) carry firearms;
(7) conduct prelicense inspections and post-shipment verifications; and
(8) execute warrants and make arrests.
(b) Undercover investigations
(1) In generalAmounts made available to carry out this subchapter may be used by the Secretary to carry out undercover investigations that are necessary for detection and prosecution of violations of this subchapter, including to—
(A) purchase property, buildings, and other facilities, and to lease space, within the United States, the District of Columbia, and the territories and possessions of the United States without regard to—
(i) sections 1341 and 3324 of title 31;
(ii)section 8141 of title 40;
(iii) sections 3901, 6301(a) and (b)(1) to (3), and 6306 of title 41; and
(iv) chapter 45 of title 41; and
(B) establish or acquire proprietary corporations or business entities as part of the undercover operation and operate such corporations or business entities on a commercial basis, without regard to sections 9102 and 9103 of title 31.
(2) Deposit of amounts in banks or other financial institutions
(3) Offset of necessary and reasonable expenses
(4) Disposition of corporations and business entities
(5) Deposit of proceeds
(c) Enforcement of subpoenas
(d) Best practice guidelines
(1) In general
(2) Export compliance program
(e) Reference to enforcement
(f) Omitted
(g) Immunity
(h) Confidentiality of information
(1) Exemptions from disclosure
(A) In general
(B) Information describedInformation described in this subparagraph is information submitted or obtained in connection with an application for a license or other authorization to export, reexport, or in-country transfer items or engage in other activities, a recordkeeping or reporting requirement, an enforcement activity, or other operations under this subchapter, including—
(i) the license application, license, or other authorization itself;
(ii) classification or advisory opinion requests, and the response thereto;
(iii) license determinations, and information pertaining thereto;
(iv) information or evidence obtained in the course of any investigation; and
(v) information obtained or furnished in connection with any international agreement, treaty, or other obligation.
(2) Information to the Congress and GAO
(A) In general
(B) Availability to the Congress
(i) In general
(ii) Prohibition on further disclosure
(C) Availability to GAO
(i) In general
(ii) Prohibition on further disclosure
(3) Information sharing
(A) In general
(B) Exceptions
(C) Exchange of informationThe President shall ensure that the heads of departments, agencies, and offices with enforcement authorities under this subchapter, consistent with protection of law enforcement and its sources and methods—
(i) exchange any licensing and enforcement information with one another that is necessary to facilitate enforcement efforts under this section; and
(ii) consult on a regular basis with one another and with the head of other departments, agencies, and offices that obtain information subject to this paragraph, in order to facilitate the exchange of such information.
(D) Information sharing with Federal agencies
(i) Reporting requirements
(j) Civil forfeiture
(1) In general
(2) Procedures
(k) Rule of construction
(Pub. L. 115–232, div. A, title XVII, § 1761, Aug. 13, 2018, 132 Stat. 2226.)
§ 4821. Administrative procedure
(a) In general
(b) Administrative law judges
(1) In general
The Secretary may—
(A) appoint administrative law judges, consistent with the provisions of section 3105 of title 5; and
(B) designate properly appointed administrative law judges from other Federal agencies who are provided to the Department of Commerce pursuant to a legally authorized interagency agreement.
(2) Limitation
(c) Amendments to regulations
(Pub. L. 115–232, div. A, title XVII, § 1762, Aug. 13, 2018, 132 Stat. 2231.)
§ 4822. Review of interagency dispute resolution process
(a) In general
(b) Report
(c) Operating Committee for Export Policy
(d) Appropriate congressional committees defined
In this section, the term “appropriate congressional committees” means—
(1) the Committee on Armed Services and the Committee on Foreign Affairs of the House of Representatives; and
(2) the Committee on Armed Services and the Committee on Banking, Housing, and Urban Affairs of the Senate.
(Pub. L. 115–232, div. A, title XVII, § 1763, Aug. 13, 2018, 132 Stat. 2231; Pub. L. 116–283, div. A, title X, § 1081(d)(9), Jan. 1, 2021, 134 Stat. 3874.)
§ 4823. Consultation with other agencies on commodity classification
Notwithstanding any other provision of law, the Secretary shall consult with the Secretary of Defense, the Secretary of State, and the Secretary of Energy, as appropriate, regarding commodity classifications for any item the Secretary and the Secretary of Defense, the Secretary of State, and the Secretary of Energy identify and mutually determine is materially significant enough to warrant interagency consultation.
(Pub. L. 115–232, div. A, title XVII, § 1764, Aug. 13, 2018, 132 Stat. 2232.)
§ 4824. Annual report to Congress
(a) In general
The Secretary shall submit to Congress, by December 31 of each year, a report on the implementation of this subchapter during the preceding fiscal year. The report shall include a review of—
(1) the effect of controls imposed under this subchapter on exports, reexports, and in-country transfers of items in addressing threats to the national security or foreign policy of the United States, including a description of licensing processing times;
(2) the impact of such controls on the scientific and technological leadership of the United States;
(3) the consistency with such controls of export controls imposed by other countries;
(4) efforts to provide exporters with compliance assistance, including specific actions to assist small- and medium-sized businesses;
(5) a summary of regulatory changes from the prior fiscal year;
(6) a summary of export enforcement actions, including of actions taken to implement end-use monitoring of dual-use, military, and other items subject to the Export Administration Regulations;
(7) a summary of approved license applications to proscribed persons;
(8) efforts undertaken within the previous year to comply with the requirements of section 4817 1
1 See References in Text note below.
of this title, including any critical technologies identified under such section and how or whether such critical technologies were controlled for export; and(9) a summary of industrial base assessments conducted during the previous year by the Department of Commerce, including with respect to counterfeit electronics, foundational technologies, and other research and analysis of critical technologies and industrial capabilities of key defense-related sectors.
(b) Form
(Pub. L. 115–232, div. A, title XVII, § 1765, Aug. 13, 2018, 132 Stat. 2232.)
§ 4825. Effect on other acts
(a) In general
(b) Coordination of controls
(1) In general
(2) Sense of Congress
It is the sense of Congress that in order to achieve effective coordination described in paragraph (1), such Federal departments and agencies—
(A) should continuously work to create enforceable regulations with respect to the export, reexport, and in-country transfer by United States and foreign persons of commodities, software, technology, and services to various end uses and end users for foreign policy and national security reasons;
(B) should regularly work to reduce complexity in the system, including complexity caused merely by the existence of structural, definitional, and other non-policy based differences between and among different export control and sanctions systems; and
(C) should coordinate controls on items exported, reexported, or in-country transferred in connection with a foreign military sale under chapter 2 of the Arms Export Control Act (22 U.S.C. 2761 et seq.) or a commercial sale under section 38 of the Arms Export Control Act [22 U.S.C. 2778] to reduce as much unnecessary administrative burden as possible that is a result of differences between the exercise of those two authorities.
(c) Nonproliferation controls
(Pub. L. 115–232, div. A, title XVII, § 1767, Aug. 13, 2018, 132 Stat. 2233.)
§ 4826. Transition provisions
(a) In general
(b) Administrative and judicial proceedings
(c) Certain determinations and references
(1) State sponsors of terrorism
(2) Reference
(Pub. L. 115–232, div. A, title XVII, § 1768, Aug. 13, 2018, 132 Stat. 2233.)