H.R. 4530 — STOP Shells Act

This section requires the Secretary of Commerce to apply licensing requirements under the Export Control Reform Act of 2018 to affiliates owned 50% or more in aggregate, directly or indirectly, by an entity on the Entity List or Military End User List (both maintained by the Bureau of Industry and Security to restrict exports, reexports, and transfers of items posing risks to U.S. national security or foreign policy). The section further directs the Secretary, prior to adding an entity to either list, to assess whether applying the Foreign Direct Product Rule (i.e., controls on foreign-produced items incorporating U.S.-origin technology, software, or equipment) would advance U.S. national security or foreign policy interests and, within two days after adding an entity, to notify congressional committees with the assessment. Additionally, the section authorizes the Secretary, in consultation with the Secretaries of State, Defense, and Energy, to waive the affiliate licensing requirement on a case-by-case basis if determined to be in the U.S. national security interest and requires congressional notification within two days of issuing a waiver, including a detailed justification.