Cuban Humanitarian Trade Act of 1997

Summary: Cuban Humanitarian Trade Act of 1997 - Amends the Foreign Assistance Act of 1961 to exempt from the embargo on trade with Cuba the export of food, medicines, or medical supplies, instruments, or equipment, or any travel incident to delivery of such items.  Exempts the same items from the President's authority to restrict exports to Cuba under the Export Administration Act of 1979 or the International Emergency Economic Powers Act. 
Amends the Internal Revenue Code to terminate the denial of foreign tax credit with respect to income, war profits, or excess profits taxes paid to Cuba that are attributable to activities with respect to the permitted exports, or travel incident to such activities, under this Act. 
Directs the President to report to the Congress with respect to the uses, and end users, of the permitted exports to Cuba.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Cuban Humanitarian Trade Act of 
1997''.

SEC. 2. AMENDMENT TO EMBARGO AUTHORITY IN THE FOREIGN ASSISTANCE ACT OF 
              1961.

    Section 620(a)(1) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2370(a)(1)) is amended by inserting before the period at the end of the 
second sentence the following: ``, except that any such embargo shall 
not apply with respect to the export of any food, medicines, medical 
supplies, medical instruments, or medical equipment, or with respect to 
travel incident to the delivery of food, medicines, medical supplies, 
medical instruments, or medical equipment''.

SEC. 3. LIMITATION ON EXISTING RESTRICTIONS ON TRADE WITH CUBA.

    Upon the enactment of this Act, any regulation, proclamation, or 
provision of law, including Presidential Proclamation 3447 of February 
3, 1962, the Export Administration Regulations (15 CFR 730 and 
following), and the Cuban Assets Control Regulations (31 CFR 515), that 
prohibits exports to Cuba or transactions involving exports to Cuba and 
that is in effect on the date of the enactment of this Act, shall not 
apply with respect to the export to Cuba of food, medicines, medical 
supplies, medical instruments, or medical equipment, or with respect to 
travel incident to the delivery of food, medicines, medical supplies, 
medical instruments, or medical equipment.

SEC. 4. LIMITATION ON THE FUTURE EXERCISE OF AUTHORITY.

    After the enactment of this Act, the President may not restrict the 
exportation to Cuba of food, medicines, medical supplies, medical 
instruments, or medical equipment--
            (1) under the Export Administration Act of 1979, except to 
        the extent such restrictions would be permitted under section 5 
        of that Act for goods containing parts or components on which 
        export controls are in effect under that section; or
            (2) under section 203 of the International Emergency 
        Economic Powers Act, except to the extent the authorities under 
        that section are exercised to restrict the export of medical 
        instruments or medical equipment to deal with a threat to the 
        national security of the United States by virtue of the 
        technology incorporated in such instruments or equipment.

SEC. 5. CONFORMING AMENDMENTS.

    (a) Sanctions Under Cuban Democracy Act of 1992.--Section 1705 of 
the Cuban Democracy Act of 1992 (22 U.S.C. 6004) is amended--
            (1) in subsection (b)--
                    (A) in the subsection caption by striking ``, 
                Donations'' and inserting ``, Exports''; and
                    (B) by striking ``donations of food to 
                nongovernmental organizations or individuals in Cuba'' 
                and inserting ``exports of food to Cuba'';
            (2) by amending subsection (c) to read as follows:
    ``(c) Exports of Medicines and Medical Supplies to Cuba.--Exports 
of medicines, medical supplies, medical instruments, or medical 
equipment to Cuba shall not be restricted--
            ``(1) except to the extent such restrictions would be 
        permitted--
                    ``(A) under section 5 of the Export Administration 
                Act of 1979 for goods containing parts or components on 
                which export controls are in effect under that section; 
                or
                    ``(B) under clause (A), (B), or (C) of section 
                203(b)(2) of the International Emergency Economic 
                Powers Act;
            ``(2) except in a case in which there is a reasonable 
        likelihood that the item to be exported will be used for 
        purposes of torture or other human rights abuses;
            ``(3) except in a case in which there is a reasonable 
        likelihood that the item to be exported will be reexported; and
            ``(4) except in a case in which the item to be exported 
        could be used in the production of any biotechnological 
        product.
Before imposing restrictions under this subsection, the President shall 
submit to the Congress a report describing the restrictions to be 
imposed and the reasons for the restrictions.''; and
            (3) by striking subsection (d) and redesignating 
        subsections (e), (f), and (g) as subsections (d), (e), and (f), 
        respectively.
    (b) International Cooperation.--Section 1704(b)(2)(C)(i) of the 
Cuban Democracy Act of 1992 (22 U.S.C. 6003(b)(2)(C)(i)) is amended to 
read as follows:
                            ``(i) exports of food to Cuba; or''.

SEC. 6. APPLICATION OF DENIAL OF FOREIGN TAX CREDIT WITH RESPECT TO 
              CUBA.

    Subparagraph (A) of section 901(j)(2) of the Internal Revenue Code 
of 1986 (relating to denial of foreign tax credit, etc., with respect 
to certain foreign countries) is amended by adding at the end thereof 
the following new flush sentence:
                ``Notwithstanding the preceding sentence, this 
                subsection shall not apply to Cuba with respect to 
                income, war profits, or excess profits taxes paid to 
                Cuba that are attributable to activities with respect 
                to articles permitted to be exported to Cuba, or travel 
                incident thereto that is permitted, by virtue of the 
                enactment of the Cuban Humanitarian Trade Act of 1997. 
                The preceding sentence shall apply after the date which 
                is 60 days after the date of the enactment of this 
                sentence.''.

SEC. 7. INAPPLICABILITY OF OTHER RESTRICTIONS.

    This Act and the amendments made by this Act apply notwithstanding 
section 102(h) of the Cuban Liberty and Democratic Solidarity 
(LIBERTAD) Act of 1996 (22 U.S.C. 6032(h)).

SEC. 8. REPORT TO CONGRESS.

    Not later than 6 months after the date of the enactment of this 
Act, the President shall transmit to the Congress a report that sets 
forth--
            (1) the extent (expressed in volume and dollar amounts) of 
        sales to Cuba of food, medicines, medical supplies, medical 
        instruments, and medical equipment, since the enactment of this 
        Act;
            (2) a description of the types and end users of the goods 
        so exported; and
            (3) whether there has been any indication that any 
        medicines, medical supplies, medical instruments, or medical 
        equipment exported to Cuba since the enactment of this Act--
                    (A) have been used for purposes of torture or other 
                human rights abuses;
                    (B) were reexported; or
                    (C) were used in the production of any 
                biotechnological product.