119-hr4530

[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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