I

103D CONGRESS

1ST SESSION H. R. 3006

To provide for the imposition of sanctions against any foreign country or

any person that violates United Nations sanctions.

IN THE HOUSE OF REPRESENTATIVES

AUGUST 6, 1993

Mr. STARK (for himself, Mr. FRANK of Massachusetts, Mr. MCNULTY, Ms.

KAPTUR, Mr. FALEOMAVAEGA, Mr. JACOBS, Mr. HUGHES, Mr. OLVER,

Mr. SANDERS, and Mr. ENGEL) introduced the following bill; which was

referred jointly to the Committees on Foreign Affairs, Ways and Means,

and Banking, Finance and Urban Affairs

A BILL

To provide for the imposition of sanctions against any foreign

country or any person that violates United Nations sanctions.

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 ‘‘United Nations Secu5 rity Council Sanctions Enforcement Act’’.

6 SEC. 2. COUNTRIES VIOLATING UNITED NATIONS SANC7 TIONS.

8 (a) DETERMINATION.—
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1 (1) IMPOSITION OF SANCTIONS.—If the Presi2 dent determines that the government of any foreign

3 country is materially violating United Nations sanc4 tions, the President shall impose the sanctions de5 scribed in subsection (b) with respect to that country

6 so long as such violation continues, except as other7 wise provided in subsection (c)(2) and subsection

8 (d).

9 (2) PUBLICATION OF DETERMINATION.—Any

10 determination under this subsection shall be pub11 lished in the Federal Register.

12 (b) SANCTIONS.—The sanctions to be imposed with

13 respect to a country pursuant to subsection (a) are as fol14 lows:

15 (1) FOREIGN ASSISTANCE.—The United States

16 Government shall terminate assistance to that coun17 try under the Foreign Assistance Act of 1961, ex18 cept for assistance involving the provision of food

19 and other humanitarian assistance.

20 (2) MILITARY ASSISTANCE.—The United States

21 Government shall terminate all foreign military fi22 nancing for that country under the Arms Export

23 Control Act.

24 (3) ARMS SALES.—The United States Govern25 ment shall terminate—
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1 (A) sales to that country under the Arms

2 Export Control Act of any defense article, de3 fense service, or design and construction serv4 ice, and

5 (B) licenses for the export to that country

6 of any item on the United States Munitions

7 List.

8 (4) MULTILATERAL ASSISTANCE.—The United

9 States Government shall oppose the extension by any

10 international financial institution of any loan or

11 other financial or technical assistance to that coun12 try, except for assistance directed specifically to pro13 grams which serve the basic human needs of the

14 people of that country.

15 (5) FINANCIAL ASSISTANCE.—The United

16 States Government shall deny to that country any

17 credit, credit guarantee, or other financial assistance

18 by any department, agency, or instrumentality of the

19 Government, except that this paragraph does not

20 apply to—

21 (A) food or other humanitarian assistance,

22 or

23 (B) any transaction subject to the report24 ing requirements of title V of the National Se-
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1 curity Act of 1947 (relating to congressional

2 oversight of intelligence activities).

3 (6) COMMERCIAL CREDIT.—The United States

4 Government shall prohibit any United States deposi5 tory institution (as defined in section 19(b) of the

6 Federal Reserve Act) from making any loan or pro7 viding any credit to the government of that country,

8 except for loans or credits for the purpose of pur9 chasing food or other humanitarian items.

10 (7) EXPORTS.—The United States Government

11 shall prohibit exports to that country of such goods

12 and technology as the President may specify, except

13 that—

14 (A) section 6(g) of the Export Administra15 tion Act of 1979 applies with respect to export

16 controls pursuant to this paragraph, and

17 (B) any prohibition under this paragraph

18 shall not apply with respect to any transaction

19 subject to the reporting requirements of title V

20 of the National Security Act of 1947 (relating

21 to congressional oversight of intelligence activi22 ties).

23 (8) IMPORTS.—The United States Government

24 shall prohibit the entry into the customs territory of

25 the United States of such articles as the President
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1 may specify that are growth, product, or manufac2 ture of that country.

3 (c) CONSULTATION WITH AND ACTIONS BY FOREIGN

4 GOVERNMENT.—

5 (1) CONSULTATIONS.—If the President makes a

6 determination described in subsection (a) with re7 spect to the government of a foreign country, the

8 Congress urges the President to initiate consulta9 tions immediately with that government to encour10 age it to comply with the United Nations sanctions

11 with respect to which that determination was made.

12 (2) ACTIONS BY A FOREIGN GOVERNMENT.—In

13 order to pursue such consultations, the President

14 may delay imposition of sanctions pursuant to this

15 section for up to 30 days. Following these consulta16 tions, the President shall impose sanctions unless

17 the President determines and certifies to the Con18 gress that that government has taken specific and

19 effective actions to comply with the United Nations

20 sanctions with respect to which the President made

21 the determination under subsection (a). If the Presi22 dent determines and certifies to the Congress that

23 that government is in the process of taking such ac24 tions, the President may delay the imposition of

25 sanctions for up to an additional 30 days.
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1 (3) REPORT TO CONGRESS.—Not later than 30

2 days after making a determination with respect to

3 the government of a foreign country under sub4 section (a), the President shall submit to the Con5 gress a report on the status of consultations pursu6 ant to this subsection and on the basis for any de7 termination under paragraph (2) of this subsection

8 that such government has taken specific corrective

9 actions.

10 (d) WAIVER.—A sanction which is required to be im11 posed against a country under subsection (b) shall not

12 apply if the President determines and certifies to the Con13 gress that the application of that sanction against such

14 country would have a serious adverse effect on vital United

15 States interests. The President shall transmit with such

16 certification a statement setting forth the specific reasons

17 for the President’s determination.

18 SEC. 3. PERSONS VIOLATING UNITED NATIONS SANCTIONS.

19 (a) DETERMINATION.—

20 (1) IMPOSITION OF SANCTIONS.—If the Presi21 dent determines that a person is materially violating

22 United Nations sanctions, the President shall impose

23 the sanctions described in subsection (c) on each

24 sanctioned person for a period of 2 years, except as
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1 otherwise provided in subsection (d)(2) and sub2 section (e).

3 (2) PUBLICATION OF DETERMINATION.—Any

4 determination under this subsection shall be pub5 lished in the Federal Register.

6 (b) ADVISORY OPINIONS.—Upon the request of any

7 person, the President may issue a written advisory opinion

8 to that person as to whether a proposed activity by that

9 person would subject that person to sanctions under this

10 section. Any person who relies in good faith on such an

11 advisory opinion which states that the proposed activity

12 would not subject a person to such sanctions, and any per13 son who thereafter engages in such activity, shall not be

14 made subject to such sanctions solely on account of such

15 activity.

16 (c) SANCTIONS.—

17 (1) IN GENERAL.—The sanctions to be imposed

18 pursuant to subsection (a) are as follows:

19 (A) The United States Government shall

20 not procure, or enter into any contract for the

21 procurement of, any goods or services from a

22 sanctioned person.

23 (B) The United States Government shall

24 not issue any license for any export by or to a

25 sanctioned person.
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1 (C) The United States Government shall

2 prohibit the entry into the customs territory of

3 the United States of all articles that are

4 growth, product, or manufacture of a sanc5 tioned person.

6 (2) EXCEPTIONS.—The President shall not be

7 required to apply or maintain sanctions under this

8 section with respect to the following:

9 (A) Procurement or importation of defense

10 articles or defense services—

11 (i) if the procurement or importation

12 is under an existing contract or sub13 contract, including the exercise of options

14 for production quantities to satisfy require15 ments essential to the national security of

16 the United States;

17 (ii) if the President determines that

18 the sanctioned person is a sole source sup19 plier of such articles or services, that such

20 articles or services are essential, and that

21 alternative sources are not readily or rea22 sonably available; or

23 (iii) if the President determines that

24 such articles or services are essential to the
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1 national security under defense

2 coproduction agreements.

3 (B) Procurement or importation of spare

4 parts or component parts (but not finished

5 products) which are essential to United States

6 products or production.

7 (C) Procurement of routine servicing and

8 maintenance of products, to the extent that al9 ternative sources are not readily or reasonably

10 available.

11 (D) Procurement of, or importation of arti12 cles containing, information and technology es13 sential to United States products or production.

14 (E) Procurement, exports, or imports of

15 products or services provided under contracts

16 entered into before the date on which the Presi17 dent’s determination is published in the Federal

18 Register pursuant to subsection (a)(2).

19 (F) Procurement, exports, or imports of

20 food or other humanitarian items.

21 (d) CONSULTATION WITH AND ACTIONS BY FOREIGN

22 GOVERNMENT OF JURISDICTION.—

23 (1) CONSULTATIONS.—If the President makes a

24 determination described in subsection (a) with re25 spect to a foreign person, the Congress urges the
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1 President to initiate consultations immediately with

2 the government with primary jurisdiction over that

3 foreign person with respect to the imposition of

4 sanctions pursuant to this section.

5 (2) ACTIONS BY GOVERNMENT OF JURISDIC6 TION.—In order to pursue such consultations with

7 that government, the President may delay imposition

8 of sanctions pursuant to this section for up to 90

9 days. Following these consultations, the President

10 shall impose sanctions unless the President deter11 mines and certifies to the Congress that that govern12 ment has taken specific and effective actions, includ13 ing appropriate penalties, to terminate the involve14 ment of the foreign person in the violations de15 scribed in subsection (a). If the President deter16 mines and certifies to the Congress that that govern17 ment is in the process of taking such actions, the

18 President may delay the imposition of sanctions for

19 up to an additional 90 days.

20 (3) REPORT TO CONGRESS.—Not later than 90

21 days after making a determination under subsection

22 (a), the President shall submit to the Congress a re23 port on the status of consultations with the appro24 priate government under this subsection and on the

25 basis for any determination under paragraph (2) of
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1 this subsection that such government has taken spe2 cific corrective actions.

3 (e) WAIVER.—

4 (1) CRITERION FOR WAIVER.—After the end of

5 the 12-month period beginning on the date on which

6 a sanction is imposed on a sanctioned person under

7 this section, the President may waive the application

8 of that sanction with respect to that person if the

9 President determines and certifies to the Congress

10 that the continued imposition of that sanction with

11 respect to that person would have a serious adverse

12 effect on vital United States interests.

13 (2) NOTIFICATION OF AND REPORT TO CON14 GRESS.—If the President decides to exercise the

15 waiver authority provided in paragraph (1), the

16 President shall so notify the Congress not less than

17 30 days before the waiver takes effect. Such notifica18 tion shall include a report fully articulating the ra19 tionale and circumstances which led the President to

20 exercise the waiver authority.

21 SEC. 4. DEFINITIONS.

22 For purposes of this Act, the following definitions

23 apply:

24 (1) SANCTIONED PERSON.—The term ‘‘sanc25 tioned person’’ means—
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1 (A) the person with respect to which the

2 President makes the determination described in

3 section 3(a);

4 (B) any successor entity to that person;

5 (C) any person that is a parent or subsidi6 ary of that person if that parent or subsidiary

7 materially and with requisite knowledge assisted

8 in the activities which were the basis of that de9 termination; and

10 (D) any person that is an affiliate of that

11 person if that affiliate materially and with req12 uisite knowledge assisted in the activities which

13 were the basis of that determination and if that

14 affiliate is controlled in fact by that person.

15 (2) UNITED NATIONS SANCTIONS.—The term

16 ‘‘United Nations sanctions’’ means measures that

17 members of the United Nations have been called

18 upon to apply by the United Nations Security Coun19 cil, acting under article 41 of the Charter of the

20 United Nations, in order to enforce decisions of the

21 Security Council.

22 (3) VIOLATING UNITED NATIONS SANCTIONS.—

23 The term ‘‘violating United Nations sanctions’’—

24 (A) in the case of the government of a for25 eign country, means failing to apply measures
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1 called for by the United Nations Security Coun2 cil; and

3 (B) in the case of person, means engaging

4 in activities that are prohibited under United

5 Nations sanctions, without regard to whether

6 the foreign government with primary jurisdic7 tion over those activities has applied the meas8 ures called for by the United Nations Security

9 Council.

10 SEC. 5. EFFECTIVE DATE.

11 This Act applies with respect to violations of United

12 Nations sanctions that occur on or after the date of enact13 ment of this Act.

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