CDR: HR 5239 (Export Admin. Act) ready for His Majesty's signature.

[Ann Onim]

When the Export Administration Act expired in 1994, the president signed
executive order 12923 keeping export controls in force via the
International Emergency Economic Powers Act (IEEPA).

On Oct. 30 of this year, the House of Representatives approved by voice
vote H.R. 5239 ("The Export Administration Act") which would reauthorize
the elapsed EAA through August 20, 2001.

The Senate approved the bill on Oct. 11, and the White House, having
previously announced its support of the bill, is sure to sign it.

Below are a few comments from page H11575 of the Congressional Record
(Oct. 30).  Note the commentary on the necessity of "protecting the
government" against "legal challenges" which can only be references to
Bernstein...

[See http://thomas.loc.gov/cgi-bin/query/R?r106:FLD001:H61575]

---Begin Congressional Record Quote---

Mr. BEREUTER: 

...

Enactment of this measure is intended to reauthorize the existing EAA for
a short period of time, thereby permitting the Congress to fashion a
comprehensive rewrite of this 21-year-old statute.

                               [TIME: 1445]

The EAA currently establishes export licensing policy for items detailed
on the Commerce Control list. The list provides specifications for close
to 2,400 dual-use items, including equipment and software likely to
require some type of license.

Mr. Speaker, this Member would point out to his colleagues that the other
body has modified the text of the bill which originated in this Chamber
since the lapse of the Export Administration Act in August of 1994, would
have retroactively provided the Department of Commerce with authority to
keep licensing information confidential under provisions of section 12(c)
of that act.

Under the provisions of this measure, the Department of Commerce will be
able to protect licensing information from the date of enactment through
August 20, 2001. It also provides for higher fines for criminal and/or
administrative sanctions against the individuals or companies found to be
in violation of export control regulation.

This Member would further point out to his colleagues that while the
original text of this Chamber's bill had included even higher fines, the
measure before this body today will still provide higher fines than those
currently authorized under IEEPA.

In short, this measure provides a much-needed stopgap authority for export
control officials at the Commerce Department.

...

Mr. LEE:

...

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. Specifically, the case calls into question the
Commerce Department's ability to keep sensitive export information
provided by exporters from public disclosure using the 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 really do have a
record trade imbalance. We need to export more. Exporting American
products creates jobs for American workers.

We need to pass this law as an important part of making sure that the
Commerce Department is there to provide as much assistance as possible in
moving products overseas.

While we would have preferred the House-passed version, the Senate
amendment we are taking up today does address this problem. It
reauthorizes the Export Administration Act until October 20, 2001. By
doing so, it will ensure that the Department of Commerce will be able to
rely on the Export Administration Act to protect the confidentiality of
the relevant documents received since 1994, as well as the documents that
the Commerce Department receives between now and August 20 of next year.

...

Ms. ROS-LEHTINEN:

Mr. Speaker, I rise in support of this legislation which serves to
re-authorize the Export Administration Act and extend its authority over
the regulation of exports of dual-use items.

This bill underscores the confidentiality provisions of the EAA and thus
helps to ensure the Commerce Department's ability to keep sensitive export
information confidential. For over six years, the U.S. has been operating
under International Emergency Economic Powers Act rendering itself
vulnerable to legal challenges. This bill helps to protects the government
against these legal challenges.

---End Congressional Record Quote---

Noticeably absent from H.R. 5239 are the measures approved last fall by the
Senate Banking Committee in S. 1712, including "the possibility to
eliminate restrictions on overseas sales of high technology products that
have already become widely available in the United States or abroad."

H.R. 5239 *seriously* ups the penalties for export control violations.
Under the new EAA, each "knowing" violation of U.S. rules by a company
would result in a $500k fine or five times the value of the exports
involved, whichever is greater.  Each violation by an individual would
result in a $250k fine or five times the value of the exports,
imprisonment for up to five years, or some combination of the above.

What bearing this will have on export of interest to cypherpunks, I do not
know, but the apparent strong urge of Congress to up penalties does not
fill me with joy.