I 

118TH CONGRESS 

2D SESSION H. R. 10447 

To authorize sanctions relating to the production and distribution of illicit 

synthetic narcotics by the People’s Republic of China. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 17, 2024 

Mr. AUCHINCLOSS (for himself, Mr. NEWHOUSE, Mr. KRISHNAMOORTHI, Mr. 

MOOLENAAR, Mr. TORRES of New York, Mr. KHANNA, Mr. JOHNSON of 

South Dakota, Mr. DUNN of Florida, and Mrs. STEEL) introduced the 

following bill; which was referred to the Committee on Foreign Affairs, 

and in addition to the Committees on Financial Services, the Judiciary, 

and Oversight and Accountability, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions 

as fall within the jurisdiction of the committee concerned 

A BILL 

To authorize sanctions relating to the production and distribution of illicit synthetic narcotics by the People’s 

Republic of China. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘CCP Fentanyl Sanc5 tions Act’’. 


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1 SEC. 2. CODIFICATION OF EXECUTIVE ORDER 14059. 

2 United States sanctions provided for in Executive 

3 Order 14059 (86 Fed. Reg. 71549; Imposing Sanctions 

4 on Foreign Persons Involved in the Global Illicit Drug 

5 Trade), as in effect on the day before the date of the en6 actment of this Act, shall remain in effect and continue 

7 to apply. 

8 SEC. 3. AUTHORIZATION OF SANCTIONS. 

9 (a) IN GENERAL.—On and after the date that is 180 

10 days after the date of the enactment of this Act, the Presi11 dent is authorized to impose the sanction described in sub12 section (b) with respect to a foreign person if the Presi13 dent determines that the person— 

14 (1) has engaged in, or attempted to engage in, 

15 activities or transactions in the People’s Republic of 

16 China, including in Hong Kong and Macau, or with 

17 respect to persons domiciled in, organized under the 

18 laws of, or with their principal place of business in 

19 such jurisdictions, that have contributed to, or pose 

20 a significant risk of contributing to, the inter21 national proliferation of illicit synthetic narcotics or 

22 their means of production; 

23 (2) has knowingly or with reckless disregard 

24 has received any property or interest in property 

25 that— 


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1 (A) constitutes or is derived from proceeds 

2 of activities or transactions in the People’s Re3 public of China, including in Hong Kong and 

4 Macau, or with respect to persons domiciled in, 

5 organized under the laws of, or with their prin6 cipal place of business in such jurisdictions, 

7 that have materially contributed to, or pose a 

8 significant risk of materially contributing to, 

9 the international proliferation of illicit synthetic 

10 narcotics or their means of production; or 

11 (B) was used or may have been intended 

12 to be used to commit or to facilitate activities 

13 or transactions in the People’s Republic of 

14 China, including in Hong Kong and Macau, or 

15 with respect to persons domiciled in, organized 

16 under the laws of, or with their principal place 

17 of business in such jurisdictions, that have ma18 terially contributed to, or pose a significant risk 

19 of materially contributing to, the international 

20 proliferation of illicit synthetic narcotics or 

21 their means of production; 

22 (3) is a PRC owned or operated port or ship 

23 that, knowingly or with reckless disregard, facilitates 

24 the shipment and transportation of illicit synthetic 

25 narcotics or their precursors (including in such cirVerDate Sep 11 2014 21:04 Jan 22, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H10447.IH H10447

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1 cumstances where those precursors are improperly 

2 labeled during the customs process); 

3 (4) is a PRC entity that produces illicit syn4 thetic narcotics or their precursors and, knowingly 

5 or with reckless disregard, sells those precursors to 

6 persons involved in the proliferation of illicit syn7 thetic narcotics; 

8 (5) is a PRC online marketplace that, know9 ingly or with reckless disregard, facilitates the sale 

10 of, exchange of, shipment of, transshipment of, con11 veyance of, or payment for illicit synthetic narcotics; 

12 (6) is a covered PRC government entity; 

13 (7) is a PRC entity that knowingly or with 

14 reckless disregard, provides material support related 

15 to illicit synthetic narcotics to a covered PRC gov16 ernment entity; 

17 (8) has established an entity that engages in, 

18 has engaged in, or is designed to engage in evading 

19 sanctions that would otherwise be imposed pursuant 

20 to this Act; or 

21 (9) is acting directly or indirectly for or on be22 half of a person referred to in paragraphs (1) 

23 through (8). 

24 (b) SANCTION DESCRIBED.— 


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1 (1) IN GENERAL.—The sanction described in 

2 this subsection is the exercise all of the powers 

3 granted to the President under the International 

4 Emergency Economic Powers Act (50 U.S.C. 1701 

5 et seq.) to the extent necessary to block and prohibit 

6 all transactions in property and interests in property 

7 of a foreign person if such property or interests in 

8 property are in the United States, come within the 

9 United States, or are or come within the possession 

10 or control of a United States person. 

11 (2) IMPLEMENTATION.—The President may ex12 ercise the authorities provided to the President 

13 under sections 203 and 205 of the International 

14 Emergency Economic Powers Act (50 U.S.C. 1702 

15 and 1704) to the extent necessary to carry out this 

16 section. 

17 (3) PENALTIES.—The penalties provided for in 

18 subsections (b) and (c) of section 206 of the Inter19 national Emergency Economic Powers Act (50 

20 U.S.C. 1705) shall apply to any person who violates, 

21 attempts to violate, conspires to violate, or causes a 

22 violation of any prohibition of this section, or an 

23 order or regulation prescribed under this section, to 

24 the same extent that such penalties apply to a per25 son that commits an unlawful act described in subVerDate Sep 11 2014 21:04 Jan 22, 2025 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H10447.IH H10447

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1 section section 206(a) of such Act (50 U.S.C. 

2 1705(a)). 

3 (4) EXCEPTIONS.— 

4 (A) EXCEPTION FOR INTELLIGENCE AND

5 LAW ENFORCEMENT ACTIONS.—Sanctions 

6 under this section shall not apply with respect 

7 to— 

8 (i) any activity subject to the report9 ing requirements under title V of the Na10 tional Security Act of 1947 (50 U.S.C. 

11 3091 et seq.); or 

12 (ii) any authorized intelligence or law 

13 enforcement activities of the United States. 

14 (B) EXCEPTION RELATING TO IMPORTA15 TION OF GOODS.— 

16 (i) IN GENERAL.—The authorities and 

17 requirements to impose sanctions author18 ized under this section shall not include 

19 the authority or requirement to impose 

20 sanctions on the importation of goods. 

21 (ii) GOOD DEFINED.—In this subpara22 graph, the term ‘‘good’’ means any article, 

23 natural or manmade substance, material, 

24 supply or manufactured product, including 


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1 inspection and test equipment, and exclud2 ing technical data. 

3 (c) WAIVER.—The President may waive the applica4 tion of sanctions under this section with respect to a for5 eign person for renewable periods of not more than 180 

6 days each if the President determines and reports to Con7 gress that such a waiver is in national interests of the 

8 United States. 

9 (d) RULE OF CONSTRUCTION.—Nothing in this sec10 tion may be construed to limit the authority of the Presi11 dent to designate or sanction persons pursuant to an ap12 plicable Executive order or a Federal statute, including 

13 the International Emergency Economic Powers Act (50 

14 U.S.C. 1701 et seq.). 

15 (e) CONSIDERATION OF CERTAIN INFORMATION IN

16 IMPOSING SANCTIONS.—In determining whether to im17 pose sanctions under subsection (a), the President shall 

18 consider— 

19 (1) information provided jointly by the chair20 person and ranking member of each of the appro21 priate congressional committees; and 

22 (2) credible information obtained by other coun23 tries and nongovernmental organizations that mon24 itor violations of human rights. 


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1 (f) REQUESTS BY APPROPRIATE CONGRESSIONAL

2 COMMITTEES.— 

3 (1) IN GENERAL.—Not later than 120 days 

4 after receiving a request that meets the require5 ments of paragraph (2) with respect to whether a 

6 foreign person has engaged in an activity described 

7 in subsection (a), the President shall— 

8 (A) determine if that person has engaged 

9 in such an activity; and 

10 (B) submit a classified or unclassified re11 port to the chairperson and ranking member of 

12 the committee or committees that submitted the 

13 request with respect to that determination that 

14 includes— 

15 (i) a statement of whether or not the 

16 President imposed or intends to impose 

17 sanctions with respect to the person; and 

18 (ii) if the President imposed or in19 tends to impose sanctions, a description of 

20 those sanctions. 

21 (2) REQUIREMENTS.—A request under para22 graph (1) with respect to whether a foreign person 

23 has engaged in an activity described in subsection 

24 (a) shall be submitted to the President in writing 


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1 jointly by the chairperson and ranking member of 

2 one of the appropriate congressional committees. 

3 SEC. 4. FINANCIAL SANCTIONS. 

4 The Secretary of the Treasury may, in consultation 

5 with the Secretary of State, prohibit the opening of, or 

6 impose strict conditions on the maintenance of, cor7 respondent accounts or payable-through accounts in the 

8 United States by a foreign financial institution that the 

9 President determines has, on or after the date of the en10 actment of this Act, knowingly conducted or facilitated a 

11 significant transaction or transactions on behalf of a for12 eign person described in section 3(a). 

13 SEC. 5. DEFINITIONS. 

14 In this Act— 

15 (1) the term ‘‘appropriate congressional com16 mittees’’ means— 

17 (A) the Committee on Banking, Housing, 

18 and Urban Affairs; and 

19 (B) the Committee on Foreign Affairs and 

20 the Select Committee on Strategic Competition 

21 between the United States and the Chinese 

22 Communist Party of the House of Representa23 tives; 

24 (2) the term ‘‘covered PRC government entity’’ 

25 includes— 


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1 (A) the PRC government, a PRC govern2 ment official, or any entity or instrumentality 

3 thereof, that is identified by the United States 

4 Government as knowingly or recklessly facili5 tating the flow of illicit synthetic narcotics into 

6 the United States or otherwise providing mate7 rial support to a foreign person described in 

8 section 3(a); 

9 (B) any subsidiary, affiliate, or successor 

10 of an entity described in subparagraph (A); and 

11 (C) any person owned or controlled by, or 

12 that provides material support to or for, or re13 ceives materially support from an entity de14 scribed in subparagraph (A); 

15 (3) the term ‘‘foreign person’’ means a person 

16 that is not a United States person; 

17 (4) the term ‘‘illicit synthetic narcotics’’ 

18 means— 

19 (A) controlled substances, as such term is 

20 defined in section 102(6) of the Controlled Sub21 stances Act (21 U.S.C. 802(6)), with the excep22 tion of— 

23 (i) substances of natural origins; and 

24 (ii) medications that are lawful under 

25 the laws of the United States and the 


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1 Drug Enforcement Administration has pro2 vided an import permit to the importing 

3 organization for the import of such medi4 cation; 

5 (B) listed chemicals, as such term is de6 fined in section 102(33) of the Controlled Sub7 stances Act (21 U.S.C. 802(33)); and 

8 (C) active pharmaceutical ingredients or 

9 chemicals that are used in the production of 

10 controlled substances described in subpara11 graphs (A) and (B); 

12 (5) the term ‘‘knowingly’’, with respect to con13 duct, a circumstance, or a result, means that a per14 son has actual knowledge, or should have known, of 

15 the conduct, the circumstance, or the result; 

16 (6) the term ‘‘PRC’’ means the People’s Repub17 lic of China; and 

18 (7) the term ‘‘United States person’’ means any 

19 United States citizen, permanent resident alien, an 

20 entity organized under the laws of the United States 

21 or any jurisdiction within the United States (includ22 ing a foreign branch of such an entity), or any per23 son in the United States. 

Æ 


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