S.Amdt. 724

1. Adds SEC. __. PROHIBITION ON EXPORTATION OF DUAL-USE ITEMS TO THE PEOPLE'S REPUBLIC OF CHINA at the end of the bill

   Adds a section

   In S. 1619 · Placed on Calendar Senate

   The Exchange Rates and International Economic Policy Coordination Act of 1988 (22 U.S.C. 5301 et seq.) is repealed.

   Inserted: SEC. __. PROHIBITION ON EXPORTATION OF DUAL-USE ITEMS TO THE PEOPLE'S REPUBLIC OF CHINA.

   Inserted: (a) Findings.--Congress makes the following findings:

   Inserted: (1) According to the United States International Trade Commission, exports from the United States to the People's Republic of China have risen substantially in recent years, totaling approximately $91,900,000,000 in 2010 compared to approximately $69,900,000,000 in 2009.

   Inserted: (2) China is the third-largest export market for goods produced in the United States, including dual-use items, which have both civilian and military applications.

   Inserted: (3) China is also a major trading partner of both the Islamic Republic of Iran and the Democratic People's Republic of North Korea.

   Inserted: (4) The Ambassador of China to Iran recently noted that trade between China and Iran is expected to increase to $40,000,000,000 to $45,000,000,000 in 2011, an increase from approximately $30,000,000,000 in 2010.

   Inserted: (5) A South Korean news agency recently reported that North Korea's trade dependence on China continues to grow, accounting for more than half of all North Korea's foreign trade.

   Inserted: (6) The Department of Commerce requires dual-use items to be licensed before being exported to China. Since 2007, however, preauthorized end-users in China have been authorized to participate in the Validated End-User program, which allows certain items to be exported without a license. While on-site audits of validated end-users in China by the Department of Commerce are permissible, the effectiveness of the Validated End-User program remains uncertain.

   Inserted: (7) The Government of China has a poor track record of enforcement of export controls. Moreover, the Government of China remains largely indifferent to the implementation of international sanctions on both Iran and North Korea for activities relating to the proliferation of weapons of mass destruction.

   Inserted: (8) China's expanding trade relationships with both Iran and North Korea raise concern that sensitive dual-use items exported from the United States may end up in the hands of rogue regimes and dangerous proliferators of weapons of mass destruction.

   Inserted: (b) Denial of Licenses for Exportation of Dual-use Items to China.--

   Inserted: (1) In general.--Notwithstanding any other provision of law, on and after the date of the enactment of this Act, the Secretary of Commerce shall--

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   Inserted: (A) require a license for the exportation of any item on the Commerce Control List to China; and

   Inserted: (B) unless the Secretary submits to Congress the certification described in paragraph (2), deny any request for such a license.

   Inserted: (2) Certification described.--A certification described in this paragraph is a certification by the Secretary of Commerce, in consultation with the Director of National Intelligence, the Secretary of State, the Secretary of Defense, and the heads of other relevant Federal agencies, that no items on the Commerce Control List that are exported from the United States are transshipped through China to Iran, North Korea, Syria, or any other country of concern with respect to the proliferation of weapons of mass destruction.

   Inserted: (c) Report on Preventing Transshipment of Dual-use Items.--Not later than 90 days after the date of the enactment of this Act, the Secretary of Commerce, in consultation with the Director of National Intelligence, the Secretary of State, the Secretary of the Treasury, the Secretary of Defense, and the heads of other relevant Federal agencies, shall submit to Congress a report setting forth a comprehensive strategy to prevent the transshipment of items on the Commerce Control List to countries of concern with respect to the proliferation of weapons of mass destruction.

   Inserted: (d) Commerce Control List Defined.--In this section, the term "Commerce Control List" means the list maintained pursuant to part 774 of title 15, Code of Federal Regulations (or any corresponding similar regulation or ruling).

   Original wording

   At the end, add the following:

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