[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4530 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 4530

To apply licensing requirements under the Export Control Reform Act of 
2018 to subsidiaries of entities listed on the Entity List or Military 
                 End User List, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 17, 2025

  Mr. Self (for himself and Mr. Case) introduced the following bill; 
         which was referred to the Committee on Foreign Affairs

_______________________________________________________________________

                                 A BILL


 
To apply licensing requirements under the Export Control Reform Act of 
2018 to subsidiaries of entities listed on the Entity List or Military 
                 End User List, and for other purposes.

    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 ``Suppressing Tactics of Prohibited 
Shells Act'' or the ``STOP Shells Act''.

SEC. 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.

    (a) In General.--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.
    (b) Foreign Direct Product Rule Assessment.--
            (1) In general.--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.
            (2) Congressional notification.--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.
    (c) Waiver.--
            (1) In general.--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.
            (2) Congressional notification.--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.
    (d) Definitions.--In this section--
            (1) 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;
            (2) 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
            (3) 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.
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