National Security Review Bodies: Legal
Context and Comparison
Updated November 9, 2022
Federal law creates several frameworks that allow the United States to review the national security risks
posed by some private commercial transactions. These legal frameworks give the United States authority
to review, prohibit, and, in some cases, unwind a wide range of commercial dealings, but they do not
capture all commercial transactions that might present national security risks. Some Members of
Congress, executive branch officials, and organizations have proposed new or modified processes to
address transactions not captured under current legal structures. This Sidebar examines and draws
contrasts among several key legal frameworks that allow the United States to review and prohibit some
private commercial transactions due to national security risks. This Sidebar also introduces legal issues
that could arise from proposals to expand or create new review mechanisms.
Departments of Commerce and State Export Controls
Discussed in this CRS Report, the export control system is one of the primary frameworks for evaluating
commercial transactions’ possible national security risks. The export control system governs U.S.-origin
exports to a foreign country or national, transfers from one foreign country to another (called reexports),
or transfers within a foreign country. These export restrictions apply to, among other things, defense
articles and services (e.g., items and technology for military use), nuclear equipment and material, and
dual-use items (e.g., items with both civilian and military uses). Among these categories, export controls
of dual-use items cover the broadest range of transactions. The Export Control Reform Act of 2018,
which is implemented through the Export Administration Regulations (EAR), provides legal authority for
dual-use and certain other export controls. Other statutory schemes, such as those governing nuclear-
related items and foreign military sales, create authority for non-dual-use controls programs. Several
agencies administer and enforce export controls, with the Bureau of Industry and Security (BIS) in the
Department of Commerce (Commerce) playing a leading role in dual-use exports.
The EAR create several interagency bodies responsible for establishing what exports and which end users
are permissible and for reviewing and issuing license applications for certain controlled exports. For
example, an End-User Review Committee with representatives from the Departments of Commerce,
State, Defense, Energy, and (in some cases) the Treasury decides what parties should be on the Entity
List. Exports to parties on the Entity List are either prohibited or subject to additional license
