§ 6301 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE Page 1276

CHAPTER 72—NUCLEAR PROLIFERATION

PREVENTION

SUBCHAPTER I—SANCTIONS FOR NUCLEAR

PROLIFERATION

Sec.

6301. Imposition of procurement sanction on persons engaging in export activities that contribute to proliferation.

(a) Determination by President.

(b) Consultation with and actions by foreign government of jurisdiction.

(c) Sanction.

(d) Advisory opinions.

(e) Termination of sanction.

(f) Waiver.

6302. Role of international financial institutions.

6303. Prohibition on assisting nuclear proliferation

through provision of financing.

(a) ‘‘Prohibited activity’’ defined.

(b) Prohibition.

(c) Presidential determination and order

with respect to United States and

foreign persons.

(d) Sanctions.

(e) Consultation with and actions by foreign government of jurisdiction.

(f) Termination of sanctions.

(g) Waiver.

(h) Enforcement action.

(i) ‘‘Knowingly’’ defined.

(j) Scope of application.

6304. Reporting on demarches.

6305. Definitions.

SUBCHAPTER II—INTERNATIONAL ATOMIC

ENERGY AGENCY

6321. Bilateral and multilateral initiatives.

6322. IAEA internal reforms.

6323. Reporting requirement.

(a) Report required.

(b) Contents of report.

6324. Definitions.

SUBCHAPTER I—SANCTIONS FOR NUCLEAR

PROLIFERATION

§ 6301. Imposition of procurement sanction on

persons engaging in export activities that

contribute to proliferation

(a) Determination by President

(1) In general

Except as provided in subsection (b)(2) of

this section, the President shall impose the

sanction described in subsection (c) of this section if the President determines in writing

that, on or after the effective date of this subchapter, a foreign person or a United States

person has materially and with requisite

knowledge contributed, through the export

from the United States or any other country

of any goods or technology (as defined in section 6305(2) of this title), to the efforts by any

individual, group, or non-nuclear-weapon state

to acquire unsafeguarded special nuclear material or to use, develop, produce, stockpile, or

otherwise acquire any nuclear explosive device.

(2) Persons against which the sanction is to be

imposed

The sanction shall be imposed pursuant to

paragraph (1) on—

(A) the foreign person or United States

person with respect to which the President

makes the determination described in that

paragraph;

(B) any successor entity to that foreign

person or United States person;

(C) any foreign person or United States

person that is a parent or subsidiary of that

person if that parent or subsidiary materially and with requisite knowledge assisted

in the activities which were the basis of that

determination; and

(D) any foreign person or United States

person that is an affiliate of that person if

that affiliate materially and with requisite

knowledge assisted in the activities which

were the basis of that determination and if

that affiliate is controlled in fact by that

person.

(3) Other sanctions available

The sanction which is required to be imposed for activities described in this subsection is in addition to any other sanction

which may be imposed for the same activities

under any other provision of law.

(4) Definition

For purposes of this subsection, the term

‘‘requisite knowledge’’ means situations in

which a person ‘‘knows’’, as ‘‘knowing’’ is defined in section 78dd–2 of title 15.

(b) Consultation with and actions by foreign government of jurisdiction

(1) Consultations

If the President makes a determination described in subsection (a)(1) of this section 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 the sanction pursuant to this section.

(2) Actions by government of jurisdiction

In order to pursue such consultations with

that government, the President may delay imposition of the sanction pursuant to this section for up to 90 days. Following these consultations, the President shall impose the

sanction unless the President determines and

certifies in writing 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) of this section. The President may delay

the imposition of the sanction for up to an additional 90 days if the President determines

and certifies in writing to the Congress that

that government is in the process of taking

the actions described in the preceding sentence.

(3) Report to Congress

Not later than 90 days after making a determination under subsection (a)(1) of this section, the President shall submit to the Committee on Foreign Relations and the Committee on Governmental Affairs of the Senate and

the Committee on Foreign Affairs of the

House of Representatives a report on the

status of consultations with the appropriate
Page 1277 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 6301

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) Sanction

(1) Description of sanction

The sanction to be imposed pursuant to subsection (a)(1) of this section is, except as provided in paragraph (2) of this subsection, that

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)(2) of this

section.

(2) Exceptions

The President shall not be required to apply

or maintain the sanction under this section—

(A) in the case of procurement of defense

articles or defense services—

(i) 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;

(ii) if the President determines in writing that the person or other entity to

which the sanction 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

(iii) if the President determines in writing that such articles or services are essential to the national security under defense coproduction agreements;

(B) to products or services provided under

contracts entered into before the date on

which the President publishes his intention

to impose the sanction;

(C) to—

(i) spare parts which are essential to

United States products or production;

(ii) component parts, but not finished

products, essential to United States products or production; or

(iii) routine servicing and maintenance

of products, to the extent that alternative

sources are not readily or reasonably

available;

(D) to information and technology essential to United States products or production;

or

(E) to medical or other humanitarian

items.

(d) Advisory opinions

Upon the request of any person, the Secretary

of State may, in consultation with the Secretary of Defense, issue in writing an advisory

opinion to that person as to whether a proposed

activity by that person would subject that person to the sanction under this section. 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 sanction, and

any person who thereafter engages in such activity, may not be made subject to such sanction on account of such activity.

(e) Termination of sanction

The sanction imposed pursuant to this section

shall apply for a period of at least 12 months following the imposition of the sanction and shall

cease to apply thereafter only if the President

determines and certifies in writing to the Congress that—

(1) reliable information indicates that the

foreign person or United States person with

respect to which the determination was made

under subsection (a)(1) of this section has

ceased to aid or abet any individual, group, or

non-nuclear-weapon state in its efforts to acquire unsafeguarded special nuclear material

or any nuclear explosive device, as described

in that subsection; and

(2) the President has received reliable assurances from the foreign person or United States

person, as the case may be, that such person

will not, in the future, aid or abet any individual, group, or non-nuclear-weapon state in its

efforts to acquire unsafeguarded special nuclear material or any nuclear explosive device,

as described in subsection (a)(1) of this section.

(f) Waiver

(1) Criterion for waiver

The President may waive the application of

the 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 in writing

to the Congress that the continued imposition

of the sanction would have a serious adverse

effect on vital United States interests.

(2) Notification of and report to Congress

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.

(Pub. L. 103–236, title VIII, §821, Apr. 30, 1994, 108

Stat. 508.)

REFERENCES IN TEXT

For the effective date of this subchapter, referred to

in subsec. (a)(1), as 60 days after Apr. 30, 1994, see section 831 of Pub. L. 103–236, set out as an Effective Date

note below.

CHANGE OF NAME

Committee on Foreign Affairs of House of Representatives treated as referring to Committee on International Relations of House of Representatives by section 1(a) of Pub. L. 104–14, set out as a note preceding

section 21 of Title 2, The Congress.

EFFECTIVE DATE

Section 831 of Pub. L. 103–236 provided that: ‘‘The provisions of this part [part B (§§821–831) of title VIII of

Pub. L. 103–236, enacting this subchapter and sections

2799aa to 2799aa–2 of this title, amending sections 262d,

2295a, 2295b, 2375, 2429a–1, 2593a, 2708, 2753, and 2780 of

this title, section 635 of Title 12, Banks and Banking,

and section 2160c of Title 42, The Public Health and

Welfare, repealing sections 2429 and 2429a of this title,
§ 6302 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE Page 1278

1So in original.

and enacting provisions set out as a note under section

2799aa of this title], and the amendments made by this

part, shall take effect 60 days after the date of the enactment of this Act [Apr. 30, 1994].’’

SHORT TITLE

Section 801 of title VIII of Pub. L. 103–236 provided

that: ‘‘This title [enacting this chapter and sections

2799aa to 2799aa–2 of this title, amending sections 262d,

2295a, 2295b, 2375, 2429a–1, 2593a, 2708, 2753, 2780, and 3281

of this title, section 635 of Title 12, Banks and Banking,

and section 2160c of Title 42, The Public Health and

Welfare, repealing sections 2429 and 2429a of this title,

and enacting provisions set out as notes under this section and section 2799aa of this title] may be cited as the

‘Nuclear Proliferation Prevention Act of 1994’.’’

TERMINATION UPON ENACTMENT OF NEXT FOREIGN

RELATIONS ACT

Section 851 of Pub. L. 103–236, which provided that on

date of enactment of first Foreign Relations Authorization Act that was enacted after enactment of Pub. L.

103–236, the provisions of parts A (amending section 3281

of this title) and B (see Effective Date note above) of

title VIII of Pub. L. 103–236 were to cease to be effective, the amendments made by those parts were to be

repealed, and any provision of law repealed by those

parts was to be reenacted, was itself repealed by Pub.

L. 104–164, title I, §157(a), July 21, 1996, 110 Stat. 1440.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 3281 of this title.

§ 6302. Role of international financial institutions

The Secretary of the Treasury shall instruct

the United States executive director to each of

the international financial institutions described in section 262d(a) of this title to use the

voice and vote of the United States to oppose

any use of the institution’s funds to promote the

acquisition of unsafeguarded special nuclear material or the development, stockpiling, or use of

any nuclear explosive device by any non-nuclear-weapon state.

(Pub. L. 103–236, title VIII, §823(a), Apr. 30, 1994,

108 Stat. 512.)

§ 6303. Prohibition on assisting nuclear proliferation through provision of financing

(a) ‘‘Prohibited activity’’ defined

For purposes of this section, the term ‘‘prohibited activity’’ means the act of knowingly, materially, and directly contributing or attempting to contribute, through the provision of financing, to—

(1) the acquisition of unsafeguarded special

nuclear material; or

(2) the use, development, production, stockpiling, or other acquisition of any nuclear explosive device,

by any individual, group, or non-nuclear-weapon

state.

(b) Prohibition

To the extent that the United States has jurisdiction to prohibit such activity by such person,

no United States person and no foreign person

may engage in any prohibited activity.

(c) Presidential determination and order with respect to United States and foreign persons

If the President determines,,1 that a United

States person or a foreign person has engaged in

a prohibited activity (without regard to whether

subsection (b) of this section applies), the President shall, by order, impose the sanctions described in subsection (d) of this section on such

person.

(d) Sanctions

The following sanctions shall be imposed pursuant to any order issued under subsection (c) of

this section with respect to any United States

person or any foreign person:

(1) Ban on dealings in Government finance

(A) Designation as primary dealer

Neither the Board of Governors of the Federal Reserve System nor the Federal Reserve

Bank of New York may designate, or permit

the continuation of any prior designation of,

the person as a primary dealer in United

States Government debt instruments.

(B) Service as depositary

The person may not serve as a depositary

for United States Government funds.

(2) Restrictions on operations

The person may not, directly or indirectly—

(A) commence any line of business in the

United States in which the person was not

engaged as of the date of the order; or

(B) conduct business from any location in

the United States at which the person did

not conduct business as of the date of the

order.

(e) Consultation with and actions by foreign government of jurisdiction

(1) Consultations

If the President makes a determination

under subsection (c) of this section with respect to a foreign person, the Congress urges

the President to initiate consultations immediately with any appropriate foreign government with respect to the imposition of any

sanction pursuant to this section.

(2) Actions by government of jurisdiction

(A) Suspension of period for imposing sanctions

In order to pursue consultations described

in paragraph (1) with any government referred to in such paragraph, the President

may delay, for up to 90 days, the effective

date of an order under subsection (c) of this

section imposing any sanction.

(B) Coordination with activities of foreign

government

Following consultations described in paragraph (1), the order issued by the President

under subsection (c) of this section imposing

any sanction on a foreign person shall take

effect unless the President determines, and

certifies in writing to the Congress, that the

government referred to in paragraph (1) has

taken specific and effective actions, including the imposition of appropriate penalties,

to terminate the involvement of the foreign

person in any prohibited activity.

(C) Extension of period

After the end of the period described in

subparagraph (A), the President may delay,