CHAPTER 56 - EXPORT ADMINISTRATION
Title 50 > CHAPTER 56
Sections (15)
§ 4601 Repealed. Pub. L. 115–232, div. A, title XVII, § 1766(a), Aug. 13, 2018, 132 Stat. 2232
§ 4602 Repealed. Pub. L. 115–232, div. A, title XVII, § 1766(a), Aug. 13, 2018, 132 Stat. 2232
§ 4603 Repealed. Pub. L. 115–232, div. A, title XVII, § 1766(a), Aug. 13, 2018, 132 Stat. 2232
§ 4604 Repealed. Pub. L. 115–232, div. A, title XVII, § 1766(a), Aug. 13, 2018, 132 Stat. 2232
“SEC. 1211 EXPORT APPROVALS FOR HIGH PERFORMANCE COMPUTERS.
(“(a) Prior Approval of Exports and Reexports.— The President shall require that no digital computer with a composite theoretical performance level of more than 2,000 millions of theoretical operations per second (MTOPS) or with such other composite theoretical performance level as may be established subsequently by the President under subsection (d), may be exported or reexported without a license to a country specified in subsection (b) if the Secretary of Commerce, the Secretary of Defense, the Secretary of Energy, the Secretary of State, or the Director of the Arms Control and Disarmament Agency objects, in writing, to such export or reexport. Any person proposing to export or reexport such a digital computer shall so notify the Secretary of Commerce, who, within 24 hours after receiving the notification, shall transmit the notification to the Secretary of Defense, the Secretary of Energy, the Secretary of State, and the Director of the Arms Control and Disarmament Agency.
(“(b) Covered Countries.— For purposes of subsection (a), the countries specified in this subsection are the countries listed as ‘Computer Tier 3’ eligible countries in section 740.7(d) of title 15 of the Code of Federal Regulations, as in effect on June 10, 1997 , subject to modification by the President under subsection (e).
(“(c) Time Limit.— Written objections under subsection (a) to an export or reexport shall be raised within 10 days after the notification is received under subsection (a). If such a written objection to the export or reexport of a computer is raised, the computer may be exported or reexported only pursuant to a license issued by the Secretary of Commerce under the Export Administration Regulations of the Department of Commerce, without regard to the licensing exceptions otherwise authorized under section 740.7 of title 15 of the Code of Federal Regulations, as in effect on June 10, 1997 . If no objection is raised within the 10-day period, the export or reexport is authorized.
(“(d) Adjustment of Composite Theoretical Performance.— The President, in consultation with the Secretary of Commerce, the Secretary of Defense, the Secretary of Energy, the Secretary of State, and the Director of the Arms Control and Disarmament Agency, may establish a new composite theoretical performance level for purposes of subsection (a). Such new level shall not take effect until 60 days after the President submits to the congressional committees designated in section 1215 a report setting forth the new composite theoretical performance level and the justification for such new level. Each report shall, at a minimum— address the extent to which high performance computers of a composite theoretical level between the level established in subsection (a) or such level as has been previously adjusted pursuant to this section and the new level, are available from other countries; address all potential uses of military significance to which high performance computers at the new level could be applied; and assess the impact of such uses on the national security interests of the United States.
(“(e) Adjustment of Covered Countries.— The President, in consultation with the Secretary of Commerce, the Secretary of Defense, the Secretary of Energy, the Secretary of State, and the Director of the Arms Control and Disarmament Agency, may add a country to or remove a country from the list of covered countries in subsection (b), except that a country may be removed from the list only in accordance with paragraph (2). The removal of a country from the list of covered countries under subsection (b) shall not take effect until 120 days after the President submits to the congressional committees designated in section 1215 a report setting forth the justification for the deletion. A country may not be removed from the list of covered countries under subsection (b) if— the country is a ‘nuclear-weapon state’ (as defined by Article IX of the Treaty on the Non-Proliferation of Nuclear Weapons) and the country is not a member of the North Atlantic Treaty Organization; or the country is not a signatory of the Treaty on the Non-Proliferation of Nuclear Weapons and the country is listed on Annex 2 to the Comprehensive Nuclear Test-Ban Treaty.
(“(f) Classification.— Each report under subsections (d) and (e) shall be submitted in an unclassified form and may, if necessary, have a classified supplement.
(“(g) Delegation of Objection Authority Within the Department of Defense.— For the purposes of the Department of Defense, the authority to issue an objection referred to in subsection (a) shall be executed for the Secretary of Defense by an official at the Assistant Secretary level within the office of the Under Secretary of Defense for Policy. In implementing subsection (a), the Secretary of Defense shall ensure that Department of Defense procedures maximize the ability of the Department of Defense to be able to issue an objection within the 10-day period specified in subsection (c).
(“(h) Calculation of 60-Day Period.— The 60-day period referred to in subsection (d) shall be calculated by excluding the days on which either House of Congress is not in session because of an adjournment of the Congress sine die.
“SEC. 1212 REPORT ON EXPORTS OF HIGH PERFORMANCE COMPUTERS.
(“(a) Report.— Not later than 60 days after the date of the enactment of this Act [ Nov. 18, 1997 ], the President shall provide to the congressional committees specified in section 1215 a report identifying all exports of digital computers with a composite theoretical performance of more than 2,000 millions of theoretical operations per second (MTOPS) to all countries since January 25, 1996 . For each export, the report shall identify— whether an export license was applied for and whether one was granted; the date of the transfer of the computer; the United States manufacturer and exporter of the computer; the MTOPS level of the computer; and the recipient country and end user.
(“(b) Additional Information on Exports to Certain Countries.— In the case of exports to countries specified in subsection (c), the report under subsection (a) shall identify the intended end use for the exported computer and the assessment by the executive branch of whether the end user is a military end user or an end user involved in activities relating to nuclear, chemical, or biological weapons or missile technology. Information provided under this subsection may be submitted in classified form if necessary.
(“(c) Covered Countries.— For purposes of subsection (b), the countries specified in this subsection are— the countries listed as ‘Computer Tier 3’ eligible countries in section 740.7(d) of title 15 of the Code of Federal Regulations, as in effect on June 10, 1997 ; and the countries listed in section 740.7(e) of title 15 of the Code of Federal Regulations, as in effect on June 10, 1997 .
“SEC. 1213 POST-SHIPMENT VERIFICATION OF EXPORT OF HIGH PERFORMANCE COMPUTERS.
(“(a) Required Post-Shipment Verification.— The Secretary of Commerce shall conduct post-shipment verification of each digital computer with a composite theoretical performance of more than 2,000 millions of theoretical operations per second (MTOPS) that is exported from the United States, on or after the date of the enactment of this Act [ Nov. 18, 1998 ], to a country specified in subsection (b).
(“(b) Covered Countries.— For purposes of subsection (a), the countries specified in this subsection are the countries listed as ‘Computer Tier 3’ eligible countries in section 740.7 of title 15 of the Code of Federal Regulations, as in effect on June 10, 1997 , subject to modification by the President under section 1211(e).
(“(c) Annual Report.— The Secretary of Commerce shall submit to the congressional committees specified in section 1215 an annual report on the results of post-shipment verifications conducted under this section during the preceding year. Each such report shall include a list of all such items exported from the United States to such countries during the previous year and, with respect to each such export, the following: The destination country. The date of export. The intended end use and intended end user. The results of the post-shipment verification.
(“(d) Explanation When Verification Not Conducted.— If a post-shipment verification has not been conducted in accordance with subsection (a) with respect to any such export during the period covered by a report, the Secretary shall include in the report for that period a detailed explanation of the reasons why such a post-shipment verification was not conducted.
(“(e) Adjustment of Performance Levels.— Whenever a new composite theoretical performance level is established under section 1211(d), that level shall apply for purposes of subsection (a) of this section in lieu of the level set forth in subsection (a).
“SEC. 1214 GAO STUDY ON CERTAIN COMPUTERS; END USER INFORMATION ASSISTANCE.
(“(a) In General.— The Comptroller General of the United States shall submit to the congressional committees specified in section 1215 a study of the national security risks relating to the sale of computers with a composite theoretical performance of between 2,000 and 7,000 millions of theoretical operations per second (MTOPS) to end users in countries specified in subsection (c). The study shall also analyze any foreign availability of computers described in the preceding sentence and the impact of such sales on United States exporters.
(“(b) End User Information Assistance to Exporters.— The Secretary of Commerce shall establish a procedure by which exporters may seek information on questionable end users in countries specified in subsection (c) who are seeking to obtain computers described in subsection (a).
(“(c) Covered Countries.— For purposes of subsections (a) and (b), the countries specified in this subsection are the countries listed as ‘Computer Tier 3’ eligible countries in section 740.7(d) of title 15 of the Code of Federal Regulations, as in effect on June 10, 1997 .
“SEC. 1215 CONGRESSIONAL COMMITTEES.
“For purposes of sections 1211(d), 1212(a), 1213(c), and 1214(a) the congressional committees specified in those sections are the following: The Committee on Banking, Housing, and Urban Affairs and the Committee on Armed Services of the Senate. The Committee on International Relations [now Committee on Foreign Affairs] and the Committee on Armed Services of the House of Representatives.”
§§ 4605 to 4610 Repealed. Pub. L. 115–232, div. A, title XVII, § 1766(a), Aug. 13, 2018, 132 Stat. 2232
§ 4611 Multilateral export control violations
(a) Determination by the President The President, subject to subsection (c), shall apply sanctions under subsection (b) for a period of not less than 2 years and not more than 5 years, if the President determines that— a foreign person has violated any regulation issued by a country to control exports for national security purposes pursuant to the agreement of the group known as the Coordinating Committee, and such violation has resulted in substantial enhancement of Soviet and East bloc capabilities in submarine or antisubmarine warfare, ballistic or antiballistic missile technology, strategic aircraft, command, control, communications and intelligence, or other critical technologies as determined by the President, on the advice of the National Security Council, to represent a serious adverse impact on the strategic balance of forces. The President shall notify the Congress of each action taken under this section. This section, except subsections (h) and (j), applies only to violations that occur after August 23, 1988 .
(b) Sanctions The sanctions referred to in subsection (a) shall apply to the foreign person committing the violation, as well as to any parent, affiliate, subsidiary, and successor entity of the foreign person, and, except as provided in subsection (c), are as follows: a prohibition on contracting with, and procurement of products and services from, a sanctioned person, by any department, agency, or instrumentality of the United States Government, and a prohibition on importation into the United States of all products produced by a sanctioned person.
(c) Exceptions The President shall not apply sanctions under this section— in the case of procurement of defense articles or defense services— under existing contracts or subcontracts, including the exercise of options for production quantities to satisfy United States operational military requirements; if the President determines that the foreign person or other entity to which the sanctions would otherwise be applied is a sole source supplier of essential defense articles or services and no alternative supplier can be identified; or if the President determines that such articles or services are essential to the national security under defense coproduction agreements; or to— products or services provided under contracts or other binding agreements (as such terms are defined by the President in regulations) entered into before the date on which the President notifies the Congress of the intention to impose the sanctions; spare parts; component parts, but not finished products, essential to United States products or production; routine servicing and maintenance of products; or information and technology.
(d) Exclusion The President shall not apply sanctions under this section to a parent, affiliate, subsidiary, and successor entity of a foreign person if the President determines that— the parent, affiliate, subsidiary, or successor entity (as the case may be) has not knowingly violated the export control regulation violated by the foreign person, and the government of the country with jurisdiction over the parent, affiliate, subsidiary, or successor entity had in effect, at the time of the violation by the foreign person, an effective export control system consistent with principles agreed to in the Coordinating Committee, including the following: national laws providing appropriate civil and criminal penalties and statutes of limitations sufficient to deter potential violations; a program to evaluate export license applications that includes sufficient technical expertise to assess the licensing status of exports and ensure the reliability of end-users; an enforcement mechanism that provides authority for trained enforcement officers to investigate and prevent illegal exports; a system of export control documentation to verify the movement of goods and technology; and procedures for the coordination and exchange of information concerning violations of the agreement of the Coordinating Committee.
(e) Definitions For purposes of this section— the term “component part” means any article which is not usable for its intended functions without being imbedded in or integrated into any other product and which, if used in production of a finished product, would be substantially transformed in that process; the term “finished product” means any article which is usable for its intended functions without being imbedded or integrated into any other product, but in no case shall such term be deemed to include an article produced by a person other than a sanctioned person that contains parts or components of the sanctioned person if the parts or components have been substantially transformed during production of the finished product; and the term “sanctioned person” means a foreign person, and any parent, affiliate, subsidiary, or successor entity of the foreign person, upon whom sanctions have been imposed under this section.
(f) Subsequent modifications of sanctions The President may, after consultation with the Congress, limit the scope of sanctions applied to a parent, affiliate, subsidiary, or successor entity of the foreign person determined to have committed the violation on account of which the sanctions were imposed if the President determines that— the parent, affiliate, subsidiary, or successor entity (as the case may be) has not, on the basis of available evidence, itself violated the export control regulation involved, either directly or through a course of conduct; the government with jurisdiction over the parent, affiliate, subsidiary, or successor entity has improved its export control system as measured by the criteria set forth in subsection (d)(2); the parent, affiliate, subsidiary, or successor entity, has instituted improvements in internal controls sufficient to detect and prevent violations of the export control regime implemented under paragraph (2); and the impact of the sanctions imposed on the parent, affiliate, subsidiary, or successor entity is proportionate to the increased defense expenditures imposed on the United States. Notwithstanding the preceding sentence, the President may not limit the scope of the sanction referred to in subsection (b)(1) with respect to the parent of the foreign person determined to have committed the violation, until that sanction has been in effect for at least 2 years.
(g) Reports to Congress The President shall include in the annual report submitted under section 4616 1 of this title, a report on the status of any sanctions imposed under this section, including any exceptions, exclusions, or modifications of sanctions that have been applied under subsection (c), (d), or (f).
(h) Discretionary imposition of sanctions If the President determines that a foreign person has violated a regulation issued by a country to control exports for national security purposes pursuant to the agreement of the group known as the Coordinating Committee, but in a case in which subsection (a)(2) may not apply, the President may apply the sanctions referred to in subsection (b) against that foreign person for a period of not more than 5 years.
(i) Compensation for diversion of militarily critical technologies to controlled countries In cases in which sanctions have been applied against a foreign person under subsection (a), the President shall initiate discussions with the foreign person and the government with jurisdiction over that foreign person regarding compensation on the part of the foreign person in an amount proportionate to the costs of research and development and procurement of new defensive systems by the United States and the allies of the United States to counteract the effect of the technological advance achieved by the Soviet Union as a result of the violation by that foreign person. The President shall, at the time that discussions are initiated under paragraph (1), report to the Congress that such discussions are being undertaken, and shall report to the Congress the outcome of those discussions.
(j) Other actions by the President Upon making a determination under subsection (a) or (h), the President shall— initiate consultations with the foreign government with jurisdiction over the foreign person who committed the violation involved, in order to seek prompt remedial action by that government; initiate discussions with the governments participating in the Coordinating Committee regarding the violation and means to ensure that similar violations do not occur; and consult with and report to the Congress on the nature of the violation and the actions the President proposes to take, or has taken, to rectify the situation.
(k) Damages for certain violations In any case in which the President makes a determination under subsection (a), the Secretary of Defense shall determine the costs of restoring the military preparedness of the United States on account of the violation involved. The Secretary of Defense shall notify the Attorney General of his determination, and the Attorney General may bring an action for damages, in any appropriate district court of the United States, to recover such costs against the person who committed the violation, any person that is owned or controlled by the person who committed the violation, and any person who owns and controls the person who committed the violation. 2 The total amount awarded in any case brought under paragraph (2) 2 shall be determined by the court in light of the facts and circumstances, but shall not exceed the amount of the net loss to the national security of the United States. An action under this subsection shall be commenced not later than 3 years after the violation occurs, or one year after the violation is discovered, whichever is later.
(l) Definition For purposes of this section, the term “foreign person” means any person other than a United States person.
§ 4612 Missile proliferation control violations
(a) Violations by United States persons If the President determines that a United States person knowingly— exports, transfers, or otherwise engages in the trade of any item on the MTCR Annex, in violation of the provisions of section 38 ( 22 U.S.C. 2778 ) or chapter 7 of the Arms Export Control Act [ 22 U.S.C. 2797 et seq.], section 4604 or 4605 1 of this title, or any regulations or orders issued under any such provisions, conspires to or attempts to engage in such export, transfer, or trade, or facilitates such export, transfer, or trade by any other person, then the President shall impose the applicable sanctions described in subparagraph (B). The sanctions which apply to a United States person under subparagraph (A) are the following: If the item on the MTCR Annex involved in the export, transfer, or trade is missile equipment or technology within category II of the MTCR Annex, then the President shall deny to such United States person, for a period of 2 years, licenses for the transfer of missile equipment or technology controlled under this chapter. If the item on the MTCR Annex involved in the export, transfer, or trade is missile equipment or technology within category I of the MTCR Annex, then the President shall deny to such United States person, for a period of not less than 2 years, all licenses for items the export of which is controlled under this chapter. In the case of any determination referred to in paragraph (1), the Secretary may pursue any other appropriate penalties under section 4610 1 of this title. The President may waive the imposition of sanctions under paragraph (1) on a person with respect to a product or service if the President certifies to the Congress that— the product or service is essential to the national security of the United States; and such person is a sole source supplier of the product or service, the product or service is not available from any alternative reliable supplier, and the need for the product or service cannot be met in a timely manner by improved manufacturing processes or technological developments.
(b) Transfers of missile equipment or technology by foreign persons Subject to paragraphs (3) through (7), if the President determines that a foreign person, after November 5, 1990 , knowingly— exports, transfers, or otherwise engages in the trade of any MTCR equipment or technology that contributes to the design, development, or production of missiles in a country that is not an MTCR adherent and would be, if it were United States-origin equipment or technology, subject to the jurisdiction of the United States under this chapter, conspires to or attempts to engage in such export, transfer, or trade, or facilitates such export, transfer, or trade by any other person, or if the President has made a determination with respect to a foreign person under section 73(a) of the Arms Export Control Act [ 22 U.S.C. 2797b(a) ], then the President shall impose on that foreign person the applicable sanctions under subparagraph (B). The sanctions which apply to a foreign person under subparagraph (A) are the following: If the item involved in the export, transfer, or trade is within category II of the MTCR Annex, then the President shall deny, for a period of 2 years, licenses for the transfer to such foreign person of missile equipment or technology the export of which is controlled under this chapter. If the item involved in the export, transfer, or trade is within category I of the MTCR Annex, then the President shall deny, for a period of not less than 2 years, licenses for the transfer to such foreign person of items the export of which is controlled under this chapter. If, in addition to actions taken under clauses (i) and (ii), the President determines that the export, transfer, or trade has substantially contributed to the design, development, or production of missiles in a country that is not an MTCR adherent, then the President shall prohibit, for a period of not less than 2 years, the importation into the United States of products produced by that foreign person. Paragraph (1) does not apply with respect to— any export, transfer, or trading activity that is authorized by the laws of an MTCR adherent, if such authorization is not obtained by misrepresentation or fraud; or any export, transfer, or trade of an item to an end user in a country that is an MTCR adherent. Sanctions set forth in paragraph (1) may not be imposed under this subsection on a person with respect to acts described in such paragraph or, if such sanctions are in effect against a person on account of such acts, such sanctions shall be terminated, if an MTCR adherent is taking judicial or other enforcement action against that person with respect to such acts, or that person has been found by the government of an MTCR adherent to be innocent of wrongdoing with respect to such acts. The Secretary, in consultation with the Secretary of State and the Secretary of Defense, may, upon the request of any person, issue an advisory opinion to that person as to whether a proposed activity by that person would subject that person to sanctions under this subsection. Any person who relies in good faith on such an advisory opinion which states that the proposed activity would not subject a person to such sanctions, and any person who thereafter engages in such activity, may not be made subject to such sanctions on account of such activity. In any case other than one in which an advisory opinion has been issued under paragraph (4) stating that a proposed activity would not subject a person to sanctions under this subsection, the President may waive the application of paragraph (1) to a foreign person if the President determines that such waiver is essential to the national security of the United States. In the event that the President decides to apply the waiver described in subparagraph (A), the President shall so notify the Congress not less than 20 working days before issuing the waiver. Such notification shall include a report fully articulating the rationale and circumstances which led the President to apply the waiver. The President may waive the imposition of sanctions under paragraph (1) on a person with respect to a product or service if the President certifies to the Congress that— the product or service is essential to the national security of the United States; and such person is a sole source supplier of the product or service, the product or service is not available from any alternative reliable supplier, and the need for the product or service cannot be met in a timely manner by improved manufacturing processes or technological developments. The President shall not apply the sanction under this subsection prohibiting the importation of the products of a foreign person— in the case of procurement of defense articles or defense services— under existing contracts or subcontracts, including the exercise of options for production quantities to satisfy requirements essential to the national security of the United States; if the President determines that the person to which the sanctions would be applied is a sole source supplier of the defense articles and services, that the defense articles or services are essential to the national security of the United States, and that alternative sources are not readily or reasonably available; or if the President determines that such articles or services are essential to the national security of the United States under defense coproduction agreements or NATO Programs of Cooperation; to products or services provided under contracts entered into before the date on which the President publishes his intention to impose the sanctions; or to— spare parts, component parts, but not finished products, essential to United States products or production, routine services and maintenance of products, to the extent that alternative sources are not readily or reasonably available, or information and technology essential to United States products or production.
(c) Definitions For purposes of this section and subsections (k) and ( l ) of section 4605 1 of this title— the term “missile” means a category I system as defined in the MTCR Annex, and any other unmanned delivery system of similar capability, as well as the specially designed production facilities for these systems; the term “Missile Technology Control Regime” or “MTCR” means the policy statement, between the United States, the United Kingdom, the Federal Republic of Germany, France, Italy, Canada, and Japan, announced on April 16, 1987 , to restrict sensitive missile-relevant transfers based on the MTCR Annex, and any amendments thereto; the term “MTCR adherent” means a country that participates in the MTCR or that, pursuant to an international understanding to which the United States is a party, controls MTCR equipment or technology in accordance with the criteria and standards set forth in the MTCR; the term “MTCR Annex” means the Guidelines and Equipment and Technology Annex of the MTCR, and any amendments thereto; the terms “missile equipment or technology” and “MTCR equipment or technology” mean those items listed in category I or category II of the MTCR Annex; the term “foreign person” means any person other than a United States person; the term “person” means a natural person as well as a corporation, business association, partnership, society, trust, any other nongovernmental entity, organization, or group, and any governmental entity operating as a business enterprise, and any successor of any such entity; and in the case of countries where it may be impossible to identify a specific governmental entity referred to in subparagraph (A), the term “person” means— all activities of that government relating to the development or production of any missile equipment or technology; and all activities of that government affecting the development or production of aircraft, electronics, and space systems or equipment; and the term “otherwise engaged in the trade of” means, with respect to a particular export or transfer, to be a freight forwarder or designated exporting agent, or a consignee or end user of the item to be exported or transferred.
§ 4613 Chemical and biological weapons proliferation sanctions
(a) Imposition of sanctions Except as provided in subsection (b)(2), the President shall impose both of the sanctions described in subsection (c) if the President determines that a foreign person, on or after October 28, 1991 , has knowingly and materially contributed— through the export from the United States of any goods or technology that are subject to the jurisdiction of the United States under this chapter, or through the export from any other country of any goods or technology that would be, if they were United States goods or technology, subject to the jurisdiction of the United States under this chapter, to the efforts by any foreign country, project, or entity described in paragraph (2) to use, develop, produce, stockpile, or otherwise acquire chemical or biological weapons. Paragraph (1) applies in the case of— any foreign country that the President determines has, at any time after January 1, 1980 — used chemical or biological weapons in violation of international law; used lethal chemical or biological weapons against its own nationals; or made substantial preparations to engage in the activities described in clause (i) or (ii); any foreign country whose government is determined for purposes of section 4605(j) 1 of this title to be a government that has repeatedly provided support for acts of international terrorism; or any other foreign country, project, or entity designated by the President for purposes of this section. Sanctions shall be imposed pursuant to paragraph (1) on— the foreign person with respect to which the President makes the determination described in that paragraph; any successor entity to that foreign person; any foreign person that is a parent or subsidiary of that foreign person if that parent or subsidiary knowingly assisted in the activities which were the basis of that determination; and any foreign person that is an affiliate of that foreign person if that affiliate knowingly assisted in the activities which were the basis of that determination and if that affiliate is controlled in fact by that foreign person.
(b) Consultations with and actions by foreign government of jurisdiction If the President makes the determinations described in subsection (a)(1) with respect to a foreign person, the Congress urges the President to initiate consultations immediately with the government with primary jurisdiction over that foreign person with respect to the imposition of sanctions pursuant to this section. In order to pursue such consultations with that government, the President may delay imposition of sanctions pursuant to this section for a period of up to 90 days. Following these consultations, the President shall impose sanctions unless the President determines and certifies to the Congress that that government has taken specific and effective actions, including appropriate penalties, to terminate the involvement of the foreign person in the activities described in subsection (a)(1). The President may delay imposition of sanctions for an additional period of up to 90 days if the President determines and certifies to the Congress that that government is in the process of taking the actions described in the preceding sentence. The President shall report to the Congress, not later than 90 days after making a determination under subsection (a)(1), on the status of consultations with the appropriate government under this subsection, and the basis for any determination under paragraph (2) of this subsection that such government has taken specific corrective actions.
(c) Sanctions The sanctions to be imposed pursuant to subsection (a)(1) are, except as provided in paragraph (2) of this subsection, the following: The United States Government shall not procure, or enter into any contract for the procurement of, any goods or services from any person described in subsection (a)(3). The importation into the United States of products produced by any person described in subsection (a)(3) shall be prohibited. The President shall not be required to apply or maintain sanctions under this section— in the case of procurement of defense articles or defense services— under existing contracts or subcontracts, including the exercise of options for production quantities to satisfy United States operational military requirements; if the President determines that the person or other entity to which the sanctions would otherwise be applied is a sole source supplier of the defense articles or services, that the defense articles or services are essential, and that alternative sources are not readily or reasonably available; or if the President determines that such articles or services are essential to the national security under defense coproduction agreements; to products or services provided under contracts entered into before the date on which the President publishes his intention to impose sanctions; to— spare parts, component parts, but not finished products, essential to United States products or production, or routine servicing and maintenance of products, to the extent that alternative sources are not readily or reasonably available; to information and technology essential to United States products or production; or to medical or other humanitarian items.
(d) Termination of sanctions The sanctions imposed pursuant to this section shall apply for a period of at least 12 months following the imposition of sanctions and shall cease to apply thereafter only if the President determines and certifies to the Congress that reliable information indicates that the foreign person with respect to which the determination was made under subsection (a)(1) has ceased to aid or abet any foreign government, project, or entity in its efforts to acquire chemical or biological weapons capability as described in that subsection.
(e) Waiver The President may waive the application of any sanction imposed on any person pursuant to this section, after the end of the 12-month period beginning on the date on which that sanction was imposed on that person, if the President determines and certifies to the Congress that such waiver is important to the national security interests of the United States. If the President decides to exercise the waiver authority provided in paragraph (1), the President shall so notify the Congress not less than 20 days before the waiver takes effect. Such notification shall include a report fully articulating the rationale and circumstances which led the President to exercise the waiver authority.
(f) Definition of foreign person For the purposes of this section, the term “foreign person” means— an individual who is not a citizen of the United States or an alien admitted for permanent residence to the United States; or a corporation, partnership, or other entity which is created or organized under the laws of a foreign country or which has its principal place of business outside the United States.