S. 4840: Export Control Enforcement and Enhancement Act

This bill would change how the federal government handles the Entity List, which is a Commerce Department list of foreign companies, organizations, and other entities that face restrictions on receiving certain U.S. exports, reexports, or transfers of items controlled under export rules.

What the bill would do

• Allow any member of the End-User Review Committee to submit a proposal directly to the committee to:
  • add an entity to the Entity List,
  • remove an entity from the list, or
  • make other changes to the list.
• Require the committee to vote within 30 days after a proposal is submitted.
• Allow a 15-day extension if the committee chair and the member who submitted the proposal agree that more information is needed.
• For proposals to add an entity to the list, require the committee to find, by majority vote, that the entity has engaged in, is engaging in, or is at risk of engaging in activities that are contrary to U.S. national security or foreign policy interests.
• For newly added entities, establish a general rule of “presumption of denial” for export licenses involving items subject to the Export Administration Regulations when the listed entity is a party to the transaction.
• Allow the committee, by majority vote, to set a different licensing policy for a particular entity or class of items if doing so would be in the U.S. national security or foreign policy interest.
• Make clear that the bill does not change other escalation procedures outside the committee process.
• State that each committee member gets one vote on these matters, and the chairperson would not be able to override voting decisions for these proposals.
• Allow the chairperson to pause the voting period if all members unanimously agree to postpone the vote.
• Require the committee chairperson to notify the Commerce Department’s Assistant Secretary for Export Administration of final decisions so they can be carried out.

Practical effect

The bill would mainly make it faster and easier for committee members to initiate and decide changes to the Entity List. In practice, that could lead to quicker additions, removals, or other changes for entities affected by U.S. export controls.

Relevant Companies

None found