16 October 2000
Source:
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US Department of State
International Information Programs
Washington File
_________________________________
13 October 2000
(Seeks to restore 1979 export control law for one year) (460) Washington -- The U.S. Senate has voted to reauthorize for less than a year a Cold War-era export-control law that expired more than six years ago as a temporary fix to deal with pending legal challenges. Attempts to rewrite the law, the Export Administration Act (EAA), have failed for a decade because of division in Congress between members associated with national security and business interests. Since August 1994 when the EAA expired, President Clinton has used an emergency law to maintain the system of export controls on computers, machine tools and other advanced technology operated by the U.S. Department of Commerce. EAA extension has become more urgent for the Clinton administration in 2000, however, as lawsuits moving through federal courts threaten confidential business information collected under the export-control system. Such information was explicitly protected under the EAA but not under emergency law. The bill passed in the Senate by voice vote October 11 [below] would reauthorize the expired law only through August 20, 2001, giving supporters of comprehensive EAA reform some time in the next Congress to try to pass it. It differs completely from a one-year bill passed by the U.S. House of Representatives September 25 [below], which would not reauthorize the EAA but would affect only two elements of it. One House bill provision would increase substantially penalties for export-control violations, which are weaker under the emergency law than even the lapsed EAA. The other House provision would restore retroactively to August 1994 the EAA's business confidentiality protection. Not certain was whether the House would accept the Senate bill or insist on a House-Senate conference to work out a compromise. A Commerce Department official said the Clinton administration could accept either bill as a temporary solution to the business confidentiality problem, given the absence of comprehensive EAA reform. "The House bill dealt primarily with increasing penalties. We need to increase penalties, but it needs to be done in the context of balanced reform," Senator Mike Enzi, Republican of Wyoming, said in a written statement. "The Senate's simple extension of the 1979 act results in an increase in penalties, but the change is not drastic. "Another concern was the threat of lawsuits being brought against the current system. By extending the 1979 act I believe this threat will be alleviated." "Our country needs comprehensive reform of its export control system," Enzi said, adding that the temporary extension will give Congress time to produce a "modernized EAA that reflects the realities of technological advances and a post-cold war environment." (The Washington File is a product of the Office of International Information Programs, U.S. Department of State. Website: http://usinfo.state.gov)
Source of following documents: http://www.access.gpo.gov/su_docs/aces/aaces002.html [Congressional Record: September 22, 2000 (Extensions)][Page E1570-E1571] From the Congressional Record Online via GPO Access [wais.access.gpo.gov] [DOCID:cr22se00-11] ``STRENGTHENING U.S. EXPORT CONTROLS'' H.R. 5239 ______ HON. BENJAMIN A. GILMAN of new york in the house of representatives Thursday, September 21, 2000 Mr. GILMAN. Mr. Speaker, today together with the Ranking Minority Member Mr. Gejdenson I am introducing a measure, the ``Export Administration Modification and Clarification Act of 2000'' that will strengthen the enforcement of our export control system by increasing the penalties against those who would knowingly violate its regulations and provisions. This measure would implement one of the key recommendations of the Cox Commission report on protecting our national security interests and is virtually identical to a provision in H.R. 973, a security assistance bill, which passed the House in June of last year with strong bipartisan support. Since the Export Administration Act, EAA, lapsed in August of 1994, the Administration has used the authorities in the International Emergency Economic Powers Act, IEEPA, to administer our export control system. But in some key areas, the Administration has less authority under IEEPA than under the EAA of 1979. For example, the penalties for violations of the Export Administration Regulations that occur under IEEPA, both criminal and civil, are substantially lower than those available for violations that occur under the EAA. Even these penalties are too low, having been eroded by inflation over the past 20 years. The measure I am introducing today significantly increases the penalties available to our enforcement authorities at the Bureau of Export Administration, BXA, in the Department of Commerce. It also ensures that the Department can maintain its ability to protect from public disclosure information concerning export license applications, the licenses themselves and related export enforcement information. In view of the lapse of the EAA over the past five and a half years, the Department is [[Page E1571]] coming under mounting legal challenges and is currently defending against two separate lawsuits seeking public release of export licensing information subject to the confidentiality provisions of section 12(c) of the EAA. Accordingly, I urge my colleagues to join me in supporting this very timely measure that will provide the authorities our regulators need to deter companies and individuals from exporting dual-use goods and technologies to countries and uses of concern and to protect the confidentiality of the export control process. ____________________
[Congressional Record: September 25, 2000 (House)][Page H8021-H8022] From the Congressional Record Online via GPO Access [wais.access.gpo.gov] [DOCID:cr25se00-64] EXPORT ADMINISTRATION MODIFICATION AND CLARIFICATION ACT OF 2000 Mr. GILMAN. Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 5239) to provide for increased penalties for violations of the Export Administration Act of 1979 and for other purposes, as amended. The Clerk read as follows: H.R. 5239 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Export Administration Modification and Clarification Act of 2000''. SEC. 2. CONTINUATION OF THE EXPORT CONTROL REGULATIONS UNDER IEEPA. To the extent that the President exercises the authorities of the International Emergency Economic Powers Act to carry out the provisions of the Export Administration Act of 1979 in order to continue in full force and effect the export control system maintained by the Export Administration Regulations issued under that Act, including regulations issued under section 8 of that Act, the following shall apply: (1)(A) Subject to subparagraph (B), the penalties for violations of the regulations continued pursuant to the International Emergency Economic Powers Act shall be the same as the penalties for violations under section 11 of the Export Administration Act of 1979, as if that section were amended-- [[Page H8022]] (i) by amending subsection (a) to read as follows: ``(a) In General.--Except as provided in subsection (b), whoever knowingly violates or conspires to or attempts to violate any provision of this Act or any license, order, or regulation issued under this Act-- ``(1) except in the case of an individual, shall be fined not more than $500,000 or 5 times the value of any exports involved, whichever is greater; and ``(2) in the case of an individual, shall be fined not more than $250,000 or 5 times the value of any exports involved, whichever is greater, or imprisoned not more than 5 years, or both.''; (ii) in subsection (b)-- (I) in paragraphs (1)(A) and (2)(A), by striking ``five times'' and inserting ``10 times''; (II) in paragraph (1)(B), by striking ``$250,000'' and inserting ``$500,000''; and (III) in paragraph (2)(B), by striking ``$250,000, or imprisoned not more than 5 years'' and inserting ``$500,000, or imprisoned not more than 10 years''; (iii) in subsection (c)(1)-- (I) by striking ``$10,000'' and inserting ``$250,000''; and (II) by striking ``except that the civil penalty'' and all that follows through the end of the paragraph and inserting ``except that the civil penalty for a violation of the regulations issued pursuant to section 8 may not exceed $50,000.''; and (iv) in subsection (h)(1), by striking ``or section 38 of the Arms Export Control Act (22 U.S.C. 2778)'' and inserting ``section 38 of the Arms Export Control Act (22 U.S.C. 2778), section 16 of the Trading with the enemy Act (50 U.S.C. 16), or, to the extent the violation involves the export of goods or technology controlled under this or any other Act or defense articles or defense services controlled under the Arms Export Control Act, section 371 of title 18, United States Code,''. (B) The penalties in effect on the day before the date of enactment of this Act for violations of the Export Administration Regulations, as continued in effect under the International Emergency Economic Powers Act, shall continue to apply in the case of any penalty assessed for, or violations based on, voluntary disclosures of information made by a person before such date of enactment. (2) The authorities set forth in section 12(a) of the Export Administration Act of 1979 may be exercised in carrying out the regulations continued pursuant to the International Emergency Economic Powers Act. (3) The provisions of sections 12(c) and 13 of the Export Administration Act of 1979 shall apply in carrying out the regulations continued pursuant to the International Emergency Economic Powers Act. (4) The continuation of the provisions of the Export Administration Regulations pursuant to the International Emergency Economic Powers Act shall not be construed as not having satisfied the requirements of that Act. SEC. 3. APPLICABILITY. Paragraphs (2), (3), and (4) of section 2 shall be applied as if enacted on August 20, 1994. SEC. 4. AUTHORIZATION OF APPROPRIATIONS. There are authorized to be appropriated to the Department of Commerce to carry out the Export Administration Act of 1979, as continued in effect under the International Emergency Economic Powers Act, $72,000,000 for fiscal year 2001. The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New York (Mr. Gilman) and the gentleman from North Dakota (Mr. Pomeroy) each will control 20 minutes. The Chair recognizes the gentleman from New York (Mr. Gilman). General Leave Mr. GILMAN. Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days within which to revise and extend their remarks on H.R. 5239, as amended. The SPEAKER pro tempore. Is there objection to the request of the gentleman from New York? There was no objection. Mr. GILMAN. Mr. Speaker, I yield myself such time as I may consume. (Mr. GILMAN asked and was given permission to revise and extend his remarks.) Mr. GILMAN. Mr. Speaker, I rise in strong support of H.R. 5239, the Export Administration Modification and Clarification Act of 2000, that will strengthen the enforcement of our export control system by increasing the penalties against those who would knowingly violate its regulations and provisions. This bipartisan measure was approved by voice vote last week by the Committee on International Relations. H.R. 5239 is virtually identical to a provision, H.R. 973, a security assistance bill, which passed the House in June of last year also with bipartisan support. Since the Export Administration Act, or EAA, lapsed in August of 1994, the Administration has used the authorities in the International Emergency Economic Powers Act to administer our export control system. But in some key areas, the administration has less authority under HEEPA than under the EAA of 1979. For example, the penalties for violations of the Export Administration Regulations that occur under IEEPA, both criminal and civil, are substantially lower than those available for violations that occur under the EAA. Even these penalties are too low, having been eroded by inflation over the last 20 years. This measure that we are introducing today significantly increases the penalties available to our enforcement authorities at the Bureau of Export Administration in the Department of Commerce. It also ensures that the Department can maintain its ability to protect from public disclosure information concerning export license applications, the licenses themselves, and related export enforcement information. In view of the lapse of the EAA over the past 5\1/2\ years, the Department is coming under mounting legal challenges and is currently defending against two separate lawsuits seeking public release of export licensing information subject to the confidentiality provisions of section 12(c) of the EAA. The text includes a technical and perfecting amendment which, one, adds a reference to the Department of Commerce's authority to deny export privileges for those persons providing false statements and export control cases; and, two, removes a provision providing for the retroactive application of higher penalties in certain instances. Accordingly, I urge my colleagues to support the passage of this bill. Mr. Speaker, I reserve the balance of my time. Mr. POMEROY. Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, we see this matter very much as the gentleman from New York (Chairman Gilman) has outlined. The Export Administration Act has been the principle authority for the regulation in the export of dual- use items from the United States. When this bill lapsed in August of 1994, the President invoked the International Emergency Economic Powers Act and other authorities to continue the export control system, including the Export Administration Regulations. Now, there has been a recent court ruling that calls into question whether or not the government can essentially hide behind emergency powers to revive an expired law. This calls into question the Commerce Department's ability to keep sensitive export information provided by exporters from public disclosure using the EAA's confidentiality provision. We have got to pass this law to make sure that they can keep the information confidential so that the exporters will fully use the Commerce Department's assistance in exporting our products. We have got a record trade-in balance. We need to export more. We need to pass this law as an important part of making certain that the Commerce Department is there to provide as much assistance as possible in moving products overseas. For that reason, we fully concur that this is passed. Mr. Speaker, I yield back the balance of my time. Mr. GILMAN. Mr. Speaker, I have no further requests for time, and I yield back the balance of my time. The SPEAKER pro tempore. The question is on the motion offered by the gentleman from New York (Mr. Gilman) that the House suspend the rules and pass the bill, H.R. 5239, as amended. The question was taken; and (two-thirds having voted in favor thereof) the rules were suspended and the bill, as amended, was passed. A motion to reconsider was laid on the table. ____________________
[DOCID: f:h5239rfs.txt]106th CONGRESS 2d Session H. R. 5239 _______________________________________________________________________ IN THE SENATE OF THE UNITED STATES September 26 (legislative day, September 22), 2000 Received October 3 (legislative day, September 22), 2000 Read twice and referred to the Committee on Banking, Housing, and Urban Affairs _______________________________________________________________________ AN ACT To provide for increased penalties for violations of the Export Administration Act of 1979, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Export Administration Modification and Clarification Act of 2000''. SEC. 2. CONTINUATION OF THE EXPORT CONTROL REGULATIONS UNDER IEEPA. To the extent that the President exercises the authorities of the International Emergency Economic Powers Act to carry out the provisions of the Export Administration Act of 1979 in order to continue in full force and effect the export control system maintained by the Export Administration Regulations issued under that Act, including regulations issued under section 8 of that Act, the following shall apply: (1)(A) Subject to subparagraph (B), the penalties for violations of the regulations continued pursuant to the International Emergency Economic Powers Act shall be the same as the penalties for violations under section 11 of the Export Administration Act of 1979, as if that section were amended-- (i) by amending subsection (a) to read as follows: ``(a) In General.--Except as provided in subsection (b), whoever knowingly violates or conspires to or attempts to violate any provision of this Act or any license, order, or regulation issued under this Act-- ``(1) except in the case of an individual, shall be fined not more than $500,000 or 5 times the value of any exports involved, whichever is greater; and ``(2) in the case of an individual, shall be fined not more than $250,000 or 5 times the value of any exports involved, whichever is greater, or imprisoned not more than 5 years, or both.''; (ii) in subsection (b)-- (I) in paragraphs (1)(A) and (2)(A), by striking ``five times'' and inserting ``10 times''; (II) in paragraph (1)(B), by striking ``$250,000'' and inserting ``$500,000''; and (III) in paragraph (2)(B), by striking ``$250,000, or imprisoned not more than 5 years'' and inserting ``$500,000, or imprisoned not more than 10 years''; (iii) in subsection (c)(1)-- (I) by striking ``$10,000'' and inserting ``$250,000''; and (II) by striking ``except that the civil penalty'' and all that follows through the end of the paragraph and inserting ``except that the civil penalty for a violation of the regulations issued pursuant to section 8 may not exceed $50,000.''; and (iv) in subsection (h)(1), by striking ``or section 38 of the Arms Export Control Act (22 U.S.C. 2778)'' and inserting ``section 38 of the Arms Export Control Act (22 U.S.C. 2778), section 16 of the Trading with the enemy Act (50 U.S.C. 16), or, to the extent the violation involves the export of goods or technology controlled under this or any other Act or defense articles or defense services controlled under the Arms Export Control Act, section 371 of title 18, United States Code,''. (B) The penalties in effect on the day before the date of the enactment of this Act for violations of the Export Administration Regulations, as continued in effect under the International Emergency Economic Powers Act, shall continue to apply in the case of any penalty assessed for, or violations based on, voluntary disclosures of information made by a person before such date of enactment. (2) The authorities set forth in section 12(a) of the Export Administration Act of 1979 may be exercised in carrying out the regulations continued pursuant to the International Emergency Economic Powers Act. (3) The provisions of sections 12(c) and 13 of the Export Administration Act of 1979 shall apply in carrying out the regulations continued pursuant to the International Emergency Economic Powers Act. (4) The continuation of the provisions of the Export Administration Regulations pursuant to the International Emergency Economic Powers Act shall not be construed as not having satisfied the requirements of that Act. SEC. 3. APPLICABILITY. Paragraphs (2), (3), and (4) of section 2 shall be applied as if enacted on August 20, 1994. SEC. 4. AUTHORIZATION OF APPROPRIATIONS. There are authorized to be appropriated to the Department of Commerce to carry out the Export Administration Act of 1979, as continued in effect under the International Emergency Economic Powers Act, $72,000,000 for fiscal year 2001. Passed the House of Representatives September 25, 2000. Attest: JEFF TRANDAHL, Clerk.
[DOCID: f:h5239eas.txt]In the Senate of the United States, October 11 (legislative day, September 22), 2000. Resolved, That the bill from the House of Representatives (H.R. 5239) entitled ``An Act to provide for increased penalties for violations of the Export Administration Act of 1979, and for other purposes.'', do pass with the following AMENDMENT: Strike out all after the enacting clause and insert: Section 20 of the Export Administration Act of 1979 (50 U.S.C. App. 2419) is amended by striking ``August 20, 1994'' and inserting in lieu thereof ``August 20, 2001''. Attest: Secretary. 106th CONGRESS 2d Session H. R. 5239 _______________________________________________________________________ AMENDMENT
[Congressional Record: October 11, 2000 (Digest)][Page D1062-D1064] From the Congressional Record Online via GPO Access [wais.access.gpo.gov] [DOCID:cr11oc00-1] Wednesday, October 11, 2000 [[Page D1062]] Daily Digest Senate Chamber Action [Excerpt] Page S10266 Export Administration Modification and Clarification Act: Committee on Banking, Housing, and Urban Affairs was discharged from further consideration of H.R. 5239, to provide for increased penalties for violations of the Export Administration Act of 1979, and the bill was then passed, after agreeing to the following amendment proposed thereto: Page S10266 Warner (for Gramm/Enzi) Amendment No. 4305, to provide for a simple one-year extension of the Export Administration Act of 1979.