BIS License Fee Prohibition Act

Bill Number

H.R. 5955

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Foreign Trade and International Finance

Status

Introduced

Latest Action

2025-11-07: Referred to the House Committee on Foreign Affairs.

Last Updated

2025-12-09T20:14:58Z

AI-Generated Summary

Purpose

The BIS License Fee Prohibition Act (H.R. 5955) aims to ban the U.S. federal government from collecting any fees related to export licenses and to require the refund of any such fees already collected. It enforces constitutional and statutory rules against taxing or charging for exports, while emphasizing that export controls—especially on dual-use technologies to China—should focus on national security and economic competitiveness rather than generating revenue.

Key Provisions

• Prohibition on Collection: After the bill's enactment, the government cannot collect fees, revenue-sharing payments, or any similar monetary charges tied to obtaining or maintaining an export license or authorization under the Export Control Reform Act of 2018 (ECRA).
• Restriction on Use of Funds: Any fees collected before, on, or after enactment cannot be spent or used for any purpose except refunding them to the license holders.
• Refund Requirement: Within 30 days of enactment, the Secretary of Commerce must fully refund all previously collected fees to the holders of the affected export licenses or authorizations.
• Clarification on Scope: The bill does not permit or endorse any export-related fees, such as those on semiconductors, and reaffirms that such fees violate the U.S. Constitution and Section 1756 of the ECRA (which already bans fees for license applications or processing).

Significant Changes to Existing Law

• Strengthens enforcement of the ECRA's existing ban on export license fees by explicitly prohibiting collection and mandating refunds, addressing potential loopholes in how fees might be structured or used.
• Introduces a strict refund mechanism not previously detailed in the ECRA, requiring action within 30 days and limiting fund use solely to repayments.
• Builds on constitutional protections (Article 1, Section 9, which bars taxes or duties on exports) by codifying them into specific policy for export controls, without altering the core ECRA framework.

Potential Impacts

• On Government Agencies: The Department of Commerce, particularly its Bureau of Industry and Security (BIS, which handles export licenses), will lose a potential revenue source and must process refunds, potentially straining administrative resources or budgets for export control programs.
• On Citizens and Businesses: U.S. exporters, especially those dealing in dual-use goods (items with both civilian and military applications), will benefit from fee refunds and future cost savings, reducing financial barriers to international trade.
• On International Relations: Could ease trade tensions by removing financial hurdles for exports to countries like China, but may limit U.S. government funding for monitoring sensitive exports, indirectly affecting national security enforcement.

Main Stakeholders Affected

• Exporters and License Holders: Primary beneficiaries, as they receive refunds and avoid future fees for licenses under the ECRA.
• Department of Commerce and BIS: Directly impacted, as they must administer refunds and cease fee collection, potentially affecting operational funding.
• U.S. Congress and Taxpayers: Congress gains reinforcement of constitutional limits on export taxation; taxpayers may see indirect benefits if fees were previously misused as revenue.
• International Trade Partners: Entities in countries subject to U.S. export controls (e.g., China for dual-use tech) could face fewer financial barriers to U.S. goods.

Notable Legal, Constitutional, or Political Implications

• Constitutional: Directly invokes the Export Clause (Article 1, Section 9) to argue that export fees act as unconstitutional taxes, setting a precedent for challenging similar charges in trade policy.
• Legal: Reinforces the ECRA's fee ban (50 U.S.C. 4815) without creating new export controls, but explicitly rules out fees on items like semiconductors, potentially inviting court challenges if fees are attempted elsewhere.
• Political: Highlights bipartisan concerns over U.S.-China trade by prioritizing security over revenue, which could influence future export policy debates and signal a shift toward cost-free licensing to boost competitiveness.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Kamlager-Dove, Sydney [D-CA-37]

Cosponsors (1)

Rep. Krishnamoorthi, Raja [D-IL-8]

Recent Actions

• 2025-11-07: Referred to the House Committee on Foreign Affairs.
• 2025-11-07: Introduced in House
• 2025-11-07: Introduced in House

Bill Versions

• BIS License Fee Prohibition Act — issued 2025-11-07 — PDF (3 pages)