I

104TH CONGRESS

2D SESSION H. R. 3023

To require the imposition of certain trade sanctions on countries which

threaten the national security of the United States and the health and

safety of United States citizens by failing to take effective action against

the production of and trafficking in illicit narcotic, and psychotropic

substances, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

MARCH 6, 1996

Mr. SHAW (for himself, Mr. GILMAN, Mr. HAMILTON, and Mr. SOUDER) introduced the following bill; which was referred to the Committee on Ways

and Means, and in addition to the Committees on Transportation and Infrastructure, and Rules, 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 require the imposition of certain trade sanctions on countries which threaten the national security of the United

States and the health and safety of United States citizens by failing to take effective action against the production of and trafficking in illicit narcotic, and psychotropic substances, and for other purposes.

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

2 This Act may be cited as the ‘‘Narcotics Control

3 Trade Act of 1996’’.

4 SEC. 2. AMENDMENT TO TRADE ACT OF 1974.

5 (a) IN GENERAL.—Section 802 of the Trade Act of

6 1974 is amended to read as follows:

7 ‘‘SEC. 802. TARIFF TREATMENT OF PRODUCTS OF

8 NONCOOPERATIVE MAJOR ILLICIT DRUG

9 PRODUCING OR DRUG TRANSIT COUNTRIES.

10 ‘‘(a) ANNUAL REPORTS ON TRADE.—

11 ‘‘(1) IN GENERAL.—At the time that the report

12 required by section 489(a) of the Foreign Assistance

13 Act of 1961 is submitted each year, the United

14 States Trade Representative, in consultation with

15 the Secretary of State, shall report to the appro16 priate congressional committees on the bilateral

17 trade relationship between the United States and

18 each major illicit drug producing country and each

19 major drug transit country as determined under sec20 tion 490(h) of that Act, including the volume of im21 ports entering the United States from that country

22 under any preferential trade program such as that

23 under title V of this Act (relating to the Generalized

24 System of Preferences), the Caribbean Basin Eco25 nomic Recovery Act, or the Andean Trade Pref-
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1 erence Act. The report may be submitted in classi2 fied form, as appropriate.

3 ‘‘(2) REVIEW OF IMPACT OF IMPOSITION OF

4 TRADE SANCTIONS ON MAJOR ILLICIT DRUG PRO5 DUCING AND MAJOR DRUG TRANSIT COUNTRIES.—

6 The report required by paragraph (1) shall include

7 an assessment, for each of the countries referred to

8 in paragraph (1)—

9 ‘‘(A) by the United States Trade Rep10 resentative of the anticipated impact of taking

11 any of the actions described in subsection (b)

12 on the economy of the United States, and the

13 economy of such country; and

14 ‘‘(B) by the Secretary of State of the an15 ticipated impact of taking any of the actions de16 scribed in subsection (b) on the country’s co17 operation with the United States, or taking

18 steps on its own, to achieve full compliance with

19 the goals and objectives of the United Nations

20 Convention Against Illicit Traffic in Narcotic

21 Drugs and Psychotropic Substances.

22 ‘‘(3) RECOMMENDATION ON TRADE SANC23 TIONS.—At the time that the report is submitted

24 under paragraph (1), the Trade Representative, in

25 consultation with the Secretary of State, shall rec-
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1 ommend to the President, on the basis of available

2 information, which trade sanctions should be im3 posed by the President under subsection (b)(2), and

4 the products to which the sanctions should be ap5 plied.

6 ‘‘(4) INFORMATION TO BE INCLUDED.—Each

7 report under this subsection shall take into account

8 information from sources available to the United

9 States Trade Representative and the Secretary of

10 State, and such information as may be submitted to

11 the Trade Representative or the Secretary by inter12 ested persons.

13 ‘‘(b) REQUIRED ACTIONS BY PRESIDENT.—

14 ‘‘(1) IN GENERAL.—Subject to subsection (c),

15 for each major illicit drug producing or major drug

16 transit country, the President shall, at the time of

17 submission of the report required by section 489(a)

18 of the Foreign Assistance Act of 1961, or at any

19 time after the submission of such report, to the ex20 tent considered necessary to achieve the purpose of

21 this title—

22 ‘‘(A) deny to any or all of the products of

23 that country nondiscriminatory treatment (most

24 favored nation treatment) or tariff treatment

25 under title V (relating to the Generalized Sys-
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1 tem of Preferences), the Caribbean Basin Eco2 nomic Recovery Act, the Andean Trade Pref3 erence Act, or any other law providing pref4 erential tariff treatment;

5 ‘‘(B) apply to any or all of the dutiable

6 products of that country an additional duty at

7 a rate not to exceed 50 percent ad valorem or

8 the specific rate equivalent;

9 ‘‘(C) apply to one or more duty-free prod10 ucts of that country a duty at a rate not to ex11 ceed 50 percent ad valorem;

12 ‘‘(D) take the steps described in subsection

13 (g)(1) or (2), or both, to curtail air transpor14 tation between the United States and that

15 country;

16 ‘‘(E) withdraw the personnel and resources

17 of the United States from participation in any

18 arrangement with that country for the pre19 clearance of customs by visitors between the

20 United States and that country;

21 ‘‘(F) deny trade benefits under any agree22 ment between that country and the United

23 States establishing a free trade area;
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1 ‘‘(G) decline to negotiate with that country

2 for purposes of establishing a free trade area;

3 or

4 ‘‘(H) take any combination of the actions

5 described in subparagraphs (A) through (G).

6 ‘‘(2) REQUIREMENT FOR IMPOSITION OF SANC7 TIONS.—The President shall take at least one of the

8 actions described in paragraph (1) for any major il9 licit drug producing or major drug transit country

10 that has been denied certification under subsection

11 (c)(1)(A) for 2 or more consecutive years.

12 ‘‘(c) CERTIFICATION PROCEDURES.—

13 ‘‘(1) WHAT MUST BE CERTIFIED.—Subject to

14 paragraph (4), subsection (b) shall not apply with

15 respect to a country if the President determines and

16 certifies to the Congress at the time of the submis17 sion of the report required by section 489(a) of the

18 Foreign Assistance Act of 1961, that—

19 ‘‘(A) during the previous year the country

20 has cooperated fully with the United States, or

21 has taken adequate steps on its own, to achieve

22 full compliance with the goals and objectives es23 tablished by the United Nations Convention

24 Against Illicit Traffic in Narcotic Drugs and

25 Psychotropic Substances; or
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1 ‘‘(B) for a country that would not other2 wise qualify for certification under subpara3 graph (A), the vital national interests of the

4 United States require that subsection (b) not

5 be applied with respect to that country.

6 ‘‘(2) CONSIDERATIONS REGARDING COOPERA7 TION.—In making the determination described in

8 paragraph (1)(A), the President shall consider the

9 extent to which the country has—

10 ‘‘(A) met the goals and objectives of the

11 United Nations Convention Against Illicit Traf12 fic in Narcotic Drugs and Psychotropic Sub13 stances, including action on such issues as illicit

14 cultivation, production, distribution, sale, trans15 port and financing, and money laundering,

16 asset seizure, extradition, mutual legal assist17 ance, law enforcement and transit cooperation,

18 precursor chemical control, and demand reduc19 tion;

20 ‘‘(B) accomplished the goals described in

21 an applicable bilateral narcotics agreement with

22 the United States or a multilateral agreement;

23 and

24 ‘‘(C) taken legal and law enforcement

25 measures to prevent and punish public corrup-
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1 tion, especially by senior government officials,

2 that facilitates the production, processing, or

3 shipment of narcotic and psychotropic sub4 stances, or that discourages the investigation or

5 prosecution of such acts.

6 ‘‘(3) INFORMATION TO BE INCLUDED IN NA7 TIONAL INTEREST CERTIFICATION.—If the President

8 makes a certification with respect to a country pur9 suant to paragraph (1)(B), the President shall in10 clude in such certification—

11 ‘‘(A) a full and complete description of the

12 vital national interests placed at risk if action

13 is taken pursuant to subsection (b) with respect

14 to that country; and

15 ‘‘(B) a statement weighing the risk de16 scribed in subparagraph (A) against the risks

17 posed to the vital national interest of the Unit18 ed States by the failure of such country to co19 operate fully with the United States in combat20 ing narcotics or to take adequate steps to com21 bat narcotics on its own.

22 ‘‘(4) CONGRESSIONAL REVIEW.—Subsection (b)

23 shall apply to a country without regard to paragraph

24 (1) if, within 30 calendar days after the receipt of

25 a certification submitted under this subsection, the
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1 Congress enacts a joint resolution disapproving the

2 determination of the President contained in such

3 certification.

4 ‘‘(d) LICIT OPIUM PRODUCING COUNTRIES.—The

5 President may make a certification under subsection

6 (c)(1)(A) with respect to a major illicit drug producing

7 country, or major drug transit country, that is a producer

8 of licit opium only if the President determines that such

9 country has taken adequate steps to prevent significant

10 diversion of its licit cultivation and production into the il11 licit market, maintains production and stockpiles at levels

12 no higher than those consistent with licit market demand,

13 and prevents illicit cultivation and production.

14 ‘‘(e) DURATION OF ACTION.—Any action taken by

15 the President under subparagraph (A), (B), (C), or (F)

16 of subsection (b)(1) shall apply to the products of a for17 eign country that are entered, or withdrawn from ware18 house for consumption, during the period that such action

19 is in effect.

20 ‘‘(f) RECERTIFICATION.—Any action taken by the

21 President under subsection (b) against a country shall re22 main in effect until—

23 ‘‘(1) the President, at the time of submission of

24 the report required by section 489(a) of the Foreign

25 Assistance Act of 1961—
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1 ‘‘(A) makes a certification under sub2 section (c)(1)(A) with respect to that country,

3 if the action was taken under subsection (b)(2),

4 or

5 ‘‘(B) makes a certification under sub6 section (c)(1) with respect to that country, in

7 any other case,

8 and the Congress does not enact a joint resolution

9 under subsection (c)(4) disapproving the determina10 tion of the President contained in that certification;

11 or

12 ‘‘(2) the President, at any other time, makes

13 the certification described in subsection (c)(1)(B)

14 with respect to that country, except that this para15 graph applies only if either—

16 ‘‘(A) the President also certifies that—

17 ‘‘(i) that country has undergone a

18 fundamental change in the government, or

19 ‘‘(ii) there has been a fundamental

20 change in the conditions that were the rea21 son—

22 ‘‘(I) why the President had not

23 made a certification with respect to

24 that country under subsection

25 (c)(1)(A), or
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1 ‘‘(II) if he had made such a cer2 tification and the Congress enacted a

3 joint resolution disapproving the de4 termination contained in the certifi5 cation, why the Congress enacted that

6 joint resolution; or

7 ‘‘(B) the Congress does not enact a joint

8 resolution disapproving the determination con9 tained in the certification under subsection

10 (c)(1)(B).

11 Any certification under subparagraph (A) of para12 graph (2) shall discuss the justification for the cer13 tification.

14 ‘‘(g) PRESIDENTIAL ACTION REGARDING AVIA15 TION.—

16 ‘‘(1) SUSPENSION OF AIR SERVICE.—(A) The

17 President is authorized to notify the government of

18 a country against which is imposed the sanction de19 scribed in subsection (b)(1)(D) of the President’s in20 tention to suspend the authority of foreign air car21 riers owned or controlled by the government or na22 tionals of that country to engage in foreign air

23 transportation to or from the United States.

24 ‘‘(B) Within 10 days after the date of notifica25 tion of a government under subparagraph (A), the
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1 Secretary of Transportation shall take all steps nec2 essary to suspend at the earliest possible date the

3 authority of any foreign air carrier owned or con4 trolled, directly or indirectly, by the government or

5 nationals of that country to engage in foreign air

6 transportation to or from the United States, not7 withstanding any agreement relating to air services.

8 ‘‘(C) The President may also direct the Sec9 retary of Transportation to take such steps as may

10 be necessary to suspend the authority of any air car11 rier to engage in foreign air transportation between

12 the United States and that country.

13 ‘‘(2) TERMINATION OF AIR SERVICE AGREE14 MENT.—(A) The President may direct the Secretary

15 of State to terminate any air service agreement be16 tween the United States and a country against

17 which a sanction described in subsection (b)(1)(D) is

18 imposed in accordance with the provisions of that

19 agreement.

20 ‘‘(B) Upon termination of an agreement under

21 this paragraph, the Secretary of Transportation

22 shall take such steps as may be necessary to revoke

23 at the earliest possible date the right of any foreign

24 air carrier owned or controlled, directly or indirectly,

25 by the government or nationals of that country to
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1 engage in foreign air transportation to or from the

2 United States.

3 ‘‘(C) Upon termination of an agreement under

4 this paragraph, the Secretary of Transportation may

5 also revoke the authority of any air carrier to engage

6 in foreign air transportation between the United

7 States and that country.

8 ‘‘(3) EXCEPTIONS.—The Secretary of Trans9 portation may provide for such exceptions from

10 paragraphs (1) and (2) as the Secretary considers

11 necessary to provide for emergencies in which the

12 safety of an aircraft or its crew or passengers is

13 threatened.

14 ‘‘(h) CONGRESSIONAL REVIEW PROCEDURES.—The

15 procedures for congressional review contained in section

16 490(g) of the Foreign Assistance Act of 1961 shall apply

17 to the consideration of any joint resolution under this sec18 tion.

19 ‘‘(i) NOTIFICATION.—(1) The President shall notify

20 the appropriate congressional committees any time an ac21 tion is taken under subsection (b) with respect to a major

22 illicit drug producing or major drug transit country.

23 ‘‘(2) The President shall also notify the appropriate

24 congressional committees any time an action taken under

25 subsection (b) with respect to a major illicit drug produc-
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1 ing or major drug transit country is modified or sus2 pended.

3 ‘‘(j) DEFINITIONS.—(1) For purposes of this section,

4 the terms ‘major illicit drug producing country’ and ‘major

5 drug transit country’ have the meanings such terms have

6 under section 481(e) of the Foreign Assistance Act of

7 1961.

8 ‘‘(2) For purposes of this section, the terms ‘air

9 transportation’, ‘air carrier’, ‘foreign air carrier’, and ‘for10 eign air transportation’ have the meanings such terms

11 have under section 101 of the Federal Aviation Act of

12 1958 (49 U.S.C. App. 1301).

13 ‘‘(3) For purposes of this section, the term ‘appro14 priate congressional committees’ means the Committee on

15 Ways and Means and the Committee on International Re16 lations of the House of Representatives and the Commit17 tee on Finance and the Committee on Foreign Relations

18 of the Senate.’’.

19 (b) REPEAL OF OBSOLETE PROVISIONS.—Sections

20 804 and 805 of the Trade Act of 1974 (19 U.S.C. 2493

21 and 2494) are repealed.

22 SEC. 3. DEFENSES OF THE UNITED STATES UNDER EXIST23 ING TRADE AGREEMENTS.

24 If proceedings are initiated by a country against the

25 United States in the World Trade Organization or under
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1 the North American Free Trade Agreement with respect

2 to actions taken pursuant to title VIII of the Trade Act

3 of 1974 (19 U.S.C. 2491 et seq.), the President shall in4 voke all applicable defenses in such proceedings, including

5 exceptions for measures necessary to protect the national

6 security of the United States and to protect human, ani7 mal, or plant life, or health.

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