II 

115TH CONGRESS 

1ST SESSION S. 1562 

To impose sanctions with respect to the Government of the Democratic 

People’s Republic of Korea and any enablers of the activities of that 

Government, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 13, 2017 

Mr. GARDNER (for himself, Mr. MARKEY, Mr. MENENDEZ, Mr. PORTMAN, Mr. 

RUBIO, and Mr. COTTON) introduced the following bill; which was read 

twice and referred to the Committee on Banking, Housing, and Urban 

Affairs 

A BILL 

To impose sanctions with respect to the Government of the 

Democratic People’s Republic of Korea and any enablers 

of the activities of that Government, 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, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘North Korean 

5 Enablers Accountability Act of 2017’’. 

6 SEC. 2. FINDINGS. 

7 Congress makes the following findings: 


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1 (1) The Government of the Democratic People’s 

2 Republic of Korea has flagrantly defied the inter3 national community by illicitly developing its nuclear 

4 and ballistic missile programs, in violation of United 

5 Nations Security Council Resolutions 1718 (2006), 

6 1874 (2009), 2087 (2013), 2094 (2013), 2270 

7 (2016), and 2321 (2016). 

8 (2) The Government of the Democratic People’s 

9 Republic of Korea engages in gross human rights 

10 abuses against its own people and citizens of other 

11 countries, including the United States and Japan. 

12 (3) The United States and its partners are 

13 committed to pursuing a peaceful denuclearization of 

14 the Democratic People’s Republic of Korea through 

15 a policy of maximum pressure and engagement. 

16 SEC. 3. SANCTIONS WITH RESPECT TO THE GOVERNMENT 

17 OF THE DEMOCRATIC PEOPLE’S REPUBLIC 

18 OF KOREA AND ITS ENABLERS. 

19 (a) BLOCKING OF PROPERTY.—On and after the date 

20 that is 90 days after the date of the enactment of this 

21 Act, the President shall block and prohibit all transactions 

22 in all property and interests in property of a person de23 scribed in subsection (d) if such property and interests in 

24 property are in the United States, come within the United 


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1 States, or are or come within the possession or control 

2 of a United States person. 

3 (b) FACILITATION OF CERTAIN TRANSACTIONS.— 

4 The President shall prohibit the opening, and prohibit or 

5 impose strict conditions on the maintaining, in the United 

6 States of a correspondent account or a payable-through 

7 account by a foreign financial institution that the Presi8 dent determines has knowingly, on or after the date that 

9 is 90 days after the date of the enactment of this Act, 

10 conducted or facilitated a significant transaction with re11 spect to the importation, sale, or transfer of goods or serv12 ices from the Democratic People’s Republic of Korea on 

13 behalf of a person described in subsection (d). 

14 (c) IMPORTATION, SALE, OR TRANSFER OF GOODS

15 AND SERVICES.—The President shall impose sanctions 

16 pursuant to the International Emergency Economic Pow17 ers Act (50 U.S.C. 1701 et seq.) with respect to a person 

18 if the President determines that the person knowingly, on 

19 or after the date that is 90 days after the date of the 

20 enactment of this Act, imports, purchases, or transfers 

21 goods or services from a person described in subsection 

22 (d). 

23 (d) PERSONS DESCRIBED.—A person described in 

24 this subsection is any of the following: 


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1 (1) The Government of the Democratic People’s 

2 Republic of Korea or any political subdivision, agen3 cy, or instrumentality of that Government. 

4 (2) Any person owned or controlled, directly or 

5 indirectly, by that Government. 

6 (3) Any person acting or purporting to act, di7 rectly or indirectly, for or on behalf of that Govern8 ment. 

9 (4) The following entities: 

10 (A) Dandong Zhicheng Metallic Material. 

11 (B) Shandong International Trade co Ltd 

12 Hongjian. 

13 (C) Xiamen Xiang Yu Shares Co. 

14 (D) Sdic Jingmin Putian Ltd. 

15 (E) Hangzhou Pei Amoy Trading com16 pany. 

17 (F) Hunchun xin Times. 

18 (G) Rizhao Steel Holding. 

19 (H) Shandong Yun Hill Mines. 

20 (I) China Dawn Garmet (Dalian). 

21 (J) Dandong Hao Du Trading co. ltd. 

22 (5) Any person affiliated with an entity de23 scribed in paragraph (4). 

24 (6) Any person affiliated with an entity identi25 fied by the Secretary of the Treasury as a major imVerDate Sep 11 2014 05:01 Jul 22, 2017 Jkt 069200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1562.IS S1562

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1 porter of goods and services from the Democratic 

2 People’s Republic of Korea. 

3 (e) EXEMPTIONS.—The following activities are ex4 empt from sanctions under this section: 

5 (1) Activities subject to the reporting require6 ments under title V of the National Security Act of 

7 1947 (50 U.S.C. 3091 et seq.). 

8 (2) Authorized intelligence activities of the 

9 United States. 

10 (3) Activities necessary to comply with United 

11 States obligations under the Agreement between the 

12 United Nations and the United States of America 

13 regarding the Headquarters of the United Nations, 

14 signed at Lake Success June 26, 1947, and entered 

15 into force November 21, 1947, the Convention on 

16 Consular Relations, done at Vienna April 24, 1963, 

17 and entered into force March 19, 1967, or any other 

18 international agreement. 

19 (4) Activities incidental to the POW/MIA ac20 counting mission in the Democratic People’s Repub21 lic of Korea, including activities by the Defense 

22 POW/MIA Accounting Agency and other govern23 mental or nongovernmental organizations tasked 

24 with identifying or recovering the remains of memVerDate Sep 11 2014 05:01 Jul 22, 2017 Jkt 069200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S1562.IS S1562

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1 bers of the United States Armed Forces in the 

2 Democratic People’s Republic of Korea. 

3 (f) WAIVERS.— 

4 (1) IN GENERAL.—The President may waive 

5 the application of sanctions under this section with 

6 respect to a person if the President— 

7 (A) determines that the waiver is in the 

8 national security interest of the United States; 

9 and 

10 (B) submits to the appropriate congres11 sional committees a report on the determination 

12 and the reasons for the determination. 

13 (2) HUMANITARIAN WAIVER.— 

14 (A) IN GENERAL.—The President may 

15 waive, for renewable periods of not less than 30 

16 days and not more than one year, the applica17 tion of sanctions under this section if the Presi18 dent submits to the appropriate congressional 

19 committees a written determination that the 

20 waiver is necessary for humanitarian assistance 

21 or to carry out the humanitarian purposes set 

22 forth in section 4 of the North Korean Human 

23 Rights Act of 2004 (22 U.S.C. 7802). 

24 (B) CONTENT OF WRITTEN DETERMINA25 TION.—A written determination submitted 


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1 under subparagraph (A) with respect to a waiv2 er shall include a description of all notification 

3 and accountability controls that have been em4 ployed in order to ensure that the activities cov5 ered by the waiver are humanitarian assistance 

6 or are carried out for the purposes set forth in 

7 section 4 of the North Korean Human Rights 

8 Act of 2004 (22 U.S.C. 7802) and do not entail 

9 any activities in North Korea or dealings with 

10 the Government of North Korea not reasonably 

11 related to humanitarian assistance or those pur12 poses. 

13 (C) CLARIFICATION OF PERMITTED AC14 TIVITIES.—An internationally recognized hu15 manitarian organization shall not be subject to 

16 sanctions under this section for— 

17 (i) engaging in a financial transaction 

18 relating to humanitarian assistance or for 

19 humanitarian purposes pursuant to a waiv20 er issued under subparagraph (A); 

21 (ii) transporting goods or services that 

22 are necessary to carry out operations relat23 ing to humanitarian assistance or humani24 tarian purposes pursuant to such a waiver; 

25 or 


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1 (iii) having merely incidental contact, 

2 in the course of providing humanitarian 

3 assistance or aid for humanitarian pur4 poses pursuant to such a waiver, with indi5 viduals who are under the control of a for6 eign person subject to sanctions under this 

7 section. 

8 (g) RULE OF CONSTRUCTION.—A person described in 

9 subsection (d) is subject to sanctions under this section 

10 without regard to whether the name of the person is pub11 lished in the Federal Register or incorporated into the list 

12 of specially designated nationals and blocked persons 

13 maintained by the Office of Foreign Assets Control of the 

14 Department of the Treasury. 

15 (h) DEFINITIONS.—In this section: 

16 (1) APPROPRIATE CONGRESSIONAL COMMIT17 TEES.—The term ‘‘appropriate congressional com18 mittees’’ means— 

19 (A) the Committee on Foreign Relations 

20 and the Committee on Banking, Housing, and 

21 Urban Affairs of the Senate; and 

22 (B) the Committee on Foreign Affairs and 

23 the Committee on Financial Services of the 

24 House of Representatives. 


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1 (2) CORRESPONDENT ACCOUNT; PAYABLE2 THROUGH ACCOUNT.—The terms ‘‘correspondent ac3 count’’ and ‘‘payable-through account’’ have the 

4 meanings given those terms in section 5318A of title 

5 31, United States Code. 

6 (3) FOREIGN FINANCIAL INSTITUTION.—The 

7 term ‘‘foreign financial institution’’ has the meaning 

8 given that term in section 561.308 of title 31, Code 

9 of Federal Regulations (or any corresponding similar 

10 regulation or ruling). 

11 (4) HUMANITARIAN ASSISTANCE.—The term 

12 ‘‘humanitarian assistance’’ means assistance to meet 

13 humanitarian needs, including needs for food, medi14 cine, medical supplies, clothing, and shelter. 

15 (5) KNOWINGLY.—The term ‘‘knowingly’’, with 

16 respect to conduct, a circumstance, or a result, 

17 means that a person has actual knowledge, or should 

18 have known, of the conduct, the circumstance, or the 

19 result. 

20 (6) UNITED STATES PERSON.—The term 

21 ‘‘United States person’’ means— 

22 (A) a United States citizen or an alien law23 fully admitted for permanent residence to the 

24 United States; and 


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1 (B) an entity organized under the laws of 

2 the United States or any jurisdiction within the 

3 United States, including a foreign branch of 

4 such an entity. 

5 SEC. 4. PROHIBITION ON IMPORT OF AND SANCTIONS WITH 

6 RESPECT TO GOODS MADE WITH NORTH KO7 REAN LABOR. 

8 (a) PROHIBITION ON IMPORT OF GOODS MADE WITH

9 NORTH KOREAN LABOR.— 

10 (1) IN GENERAL.—Except as provided in para11 graph (2), any significant goods, wares, articles, or 

12 merchandise mined, produced, or manufactured 

13 wholly or in part by the labor of nationals or citizens 

14 of the Democratic People’s Republic of Korea shall 

15 be deemed to be mined, produced, or manufactured, 

16 as the case may be, by convict labor, forced labor, 

17 or indentured labor under penal sanctions for pur18 poses of section 307 of the Tariff Act of 1930 (19 

19 U.S.C. 1307) and shall not be entitled to entry at 

20 any of the ports of the United States. 

21 (2) EXCEPTION.—The prohibition under para22 graph (1) shall not apply to goods, wares, articles, 

23 or merchandise if the Commissioner of U.S. Cus24 toms and Border Protection finds, by clear and con25 vincing evidence, that the goods, wares, articles, or 


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1 merchandise were not produced with trafficked 

2 labor, convict labor, forced labor, or indentured labor 

3 under penal sanctions. 

4 (b) SANCTIONS WITH RESPECT TO PERSONS THAT

5 USE NORTH KOREAN LABOR.—The President shall, pur6 suant to the International Emergency Economic Powers 

7 Act (50 U.S.C. 1701 et seq.), block and prohibit all trans8 actions in property and interests in property of a person 

9 that the President determines mines, produces, or manu10 factures goods, wares, articles, or merchandise prohibited 

11 from entry into the United States under subsection (a), 

12 if such property and interests in property are in the 

13 United States, come within the United States, or are or 

14 come within the possession or control of a United States 

15 person. 

16 (c) TRAFFICKED LABOR DEFINED.—In this section, 

17 the term ‘‘trafficked labor’’ means labor or services pro18 cured through the recruitment, harboring, transportation, 

19 provision, or obtaining of a person through the use of 

20 force, fraud, or coercion for the purpose of subjection to 

21 involuntary servitude, peonage, debt bondage, or slavery. 


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1 SEC. 5. MANDATORY DISCLOSURE OF INVESTMENTS IN THE 

2 DEMOCRATIC PEOPLE’S REPUBLIC OF KOREA 

3 AND OTHER SANCTIONABLE ACTIVITIES. 

4 (a) IN GENERAL.—Not later than 270 days after the 

5 date of the enactment of this Act, the Securities and Ex6 change Commission shall prescribe regulations requiring 

7 each issuer to disclose annually, beginning with the 

8 issuer’s first fiscal year that begins after the date on which 

9 those regulations are prescribed— 

10 (1) any investments in the Democratic People’s 

11 Republic of Korea; and 

12 (2) any other activities that may be subject to 

13 sanctions under section 3 or 4. 

14 (b) ISSUER DEFINED.—In this section, the term 

15 ‘‘issuer’’ has the meaning given that term in section 3(a) 

16 of the Securities Exchange Act of 1934 (15 U.S.C. 

17 78c(a)). 

Æ 


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