HR4530-119

1. Short title This Act may be cited as the Suppressing Tactics of Prohibited Shells Act or the STOP Shells Act.

2. Application of licensing requirements under the Export Control Reform Act of 2018 to subsidiaries of entities listed on the Entity List or Military End User List The Secretary of Commerce is authorized to and shall apply the licensing requirement under the Export Control Reform Act of 2018 to affiliates owned 50 percent or more in aggregate, directly or indirectly, by an entity listed on the Entity List or the Military End User List. Prior to adding an entity to the Entity List or Military End User List, the Secretary of Commerce shall conduct an assessment to determine whether application of the Foreign Direct Product Rule to the licensing requirement for the entity would advance United States national security or foreign policy interests. Not later than 2 days after adding an entity to the Entity List, the Secretary shall provide the appropriate congressional committees with the respective Foreign Direct Product Rule Assessment for the entity. Subject to subsection (d), the Secretary of Commerce is authorized to exempt, on a case-by-case basis, from the requirement set forth in subsection (a) any entity determined by the Secretary of Commerce, in consultation with the Secretaries of State, Defense, and Energy, whose exemption is in the national security interest of the United States. Not later than 2 days after issuing a waiver under this subsection, the Secretary shall notify the appropriate congressional committees and include a detailed explanation of the national security or foreign policy interest that justified the waiver. In this section— the term Entity List means the list maintained by the Bureau of Industry and Security of the Department of Commerce and set forth in Supplement No. 4 to part 744 of title 15, Code of Federal Regulations, or successor regulations; the term Military End User List means the list maintained by the Bureau of Industry and Security of the Department of Commerce and set forth in Supplement No. 7 to part 744 of title 15, Code of Federal Regulations, or successor regulations; and the term Foreign Direct Product Rule has the meaning as described in part 734.9 of title 15, Code of Federal Regulations, or successor regulations.