Maintaining American Superiority by Improving Export Control Transparency Act

#744 | S Congress #119

Last Action: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (2/26/2025)

Bill Text Source: Congress.gov

Summary and Impacts
Original Text

Bill Summary

The "Maintaining American Superiority by Improving Export Control Transparency Act" seeks to enhance transparency in the export licensing process under the Export Control Reform Act of 2018. The legislation mandates that the Secretary of Commerce submit an annual report to designated congressional committees regarding license applications and enforcement actions related to controlled exports, specifically to "covered entities," which are defined as certain organizations located in specific countries identified as posing potential national security risks.

Key elements of the report include details on each license application—such as the applicant's name, item description, end-user information, estimated value, decision outcome, and submission date—as well as enforcement activities related to compliance checks. While aggregate statistics on license applications will be publicly available, specific details about individual applications will be kept confidential to protect sensitive information. This amendment aims to improve oversight and accountability in the export control system, ensuring that Congress has the necessary information to monitor exports to potentially risky entities.

Possible Impacts

The legislation titled the "Maintaining American Superiority by Improving Export Control Transparency Act" could affect people in several ways:

1. **Increased Scrutiny of Export Activities**: Individuals and businesses involved in the export of controlled items may face increased scrutiny and a more rigorous licensing process. This could lead to delays in the approval of export applications, impacting their ability to do business internationally and potentially resulting in financial losses or missed opportunities.

2. **Enhanced Compliance Requirements**: Companies will need to ensure that they are fully compliant with the new reporting requirements as outlined in the legislation. This could necessitate additional administrative work to gather and report detailed information about export applications, enforcement actions, and related activities. Smaller companies, in particular, may find this burden challenging, requiring them to allocate resources for compliance that could otherwise be used for growth or innovation.

3. **Transparency for Stakeholders**: The legislation mandates more transparency regarding export control activities, which may empower stakeholders—such as non-governmental organizations, researchers, and the public—to better understand U.S. export policies and practices. This increased transparency could lead to heightened public awareness and scrutiny of how exports are managed, potentially influencing public opinion and policy discussions around national security and trade practices.

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 744 Introduced in Senate (IS)]

<DOC>






119th CONGRESS
  1st Session
                                 S. 744

 To amend the Export Control Reform Act of 2018 relating to licensing 
                             transparency.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 26, 2025

 Mr. Banks (for himself and Mr. Warner) introduced the following bill; 
which was read twice and referred to the Committee on Banking, Housing, 
                           and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
 To amend the Export Control Reform Act of 2018 relating to licensing 
                             transparency.

    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 ``Maintaining American Superiority by 
Improving Export Control Transparency Act''.

SEC. 2. LICENSING TRANSPARENCY.

    Section 1756 of the Export Control Reform Act of 2018 (50 U.S.C. 
4815) is amended by adding at the end the following:
    ``(e) Report.--
            ``(1) In general.--Not later than one year after the date 
        of the enactment of this subsection, and not less frequently 
        than annually thereafter, the Secretary, shall, subject to the 
        availability of appropriations, submit to the appropriate 
        congressional committees a report on license applications, 
        enforcement actions, and other requests for authorization for 
        the export, reexport, release, and in-country transfer of items 
        controlled under this part to covered entities.
            ``(2) Elements.--The report required by paragraph (1) shall 
        include, with respect to the one year preceding the previous 
        one-year period, the following:
                    ``(A) For each license application or other request 
                for authorization, the name of the entity submitting 
                the application, a brief description of the item 
                (including the Export Control Classification Number 
                (ECCN) and level of control, if applicable), the name 
                of the end-user, the end-user's location, a value 
                estimate, decision with respect to the license 
                application or authorization, and the date of 
                submission.
                    ``(B) The date, location, and result of any related 
                enforcement activities, such as end-use checks, to 
                ensure compliance with United States export controls.
                    ``(C) Aggregate statistics on all license 
                applications and other requests for authorization as 
                described in subparagraph (A).
            ``(3) Confidentiality of information.--The information 
        required to be provided in the reports required by this 
        subsection (other than the information required by paragraph 
        (2)(C)) shall be exempt from public disclosure pursuant to 
        section 1761(h)(1).
            ``(4) Definitions.--In this subsection--
                    ``(A) the term `appropriate congressional 
                committees' means--
                            ``(i) the Committee on Foreign Affairs of 
                        the House of Representatives; and
                            ``(ii) the Committee on Banking, Housing, 
                        and Urban Affairs of the Senate; and
                    ``(B) the term `covered entity' means any entity 
                that--
                            ``(i) is located or operating in a country 
                        listed in Country Group D:5 under Supplement 
                        No. 1 to part 740 of title 15, Code of Federal 
                        Regulations; and
                            ``(ii) is included on--
                                    ``(I) the list maintained and set 
                                forth in Supplement No. 4 to part 744 
                                of the Export Administration 
                                Regulations; or
                                    ``(II) the list maintained and set 
                                forth in Supplement No. 7 to part 744 
                                of the Export Administration 
                                Regulations.''.
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