Calendar No. 574

104TH CONGRESS

2D SESSION S. 2053

A BILL

To strengthen narcotics control reporting requireposes. other controlled substances, and for other pur- in illicit narcotic and psychotropic drugs and action against the production of and trafficking sanctions on countries that fail to take effective ments and to require the imposition of certain

SEPTEMBER 5, 1996

Read the second time and placed on the calendar
II

Calendar No. 574

104TH CONGRESS

2D SESSION S. 2053

To strengthen narcotics control reporting requirements and to require the

imposition of certain sanctions on countries that fail to take effective

action against the production of and trafficking in illicit narcotic and

psychotropic drugs and other controlled substances, and for other purposes.

IN THE SENATE OF THE UNITED STATES

SEPTEMBER 4, 1996

Mr. GRASSLEY (for himself, Mr. D’AMATO, and Mr. SHELBY) introduced the

following bill; which was read the first time

SEPTEMBER 5, 1996

Read the second time and placed on the calendar

A BILL

To strengthen narcotics control reporting requirements and

to require the imposition of certain sanctions on countries that fail to take effective action against the production of and trafficking in illicit narcotic and psychotropic

drugs and other controlled 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 ‘‘International Narcotics

3 Control Act of 1996’’.

4 SEC. 2. STRENGTHENING REPORTING AND CERTIFICATION

5 PROCESS.

6 (a) IN GENERAL.—Section 489(a) of the Foreign As7 sistance Act of 1961 (22 U.S.C. 2191h(a)) is amended

8 by adding at the end the following new paragraph:

9 ‘‘(8) In addition, the report required by this

10 section shall also include information from the Unit11 ed States Trade Representative, in consultation with

12 the Secretary of State, on the bilateral trade rela13 tionship between the United States and each major

14 illicit drug producing country and each major drug15 transit country as determined under section 490(h),

16 including the volume of imports (by dollar value) en17 tering the United States from that country under

18 any preferential trade program. The report may be

19 submitted in classified form, as appropriate.’’.

20 (b) MID-YEAR REPORT.—Section 490 of the Foreign

21 Assistance Act of 1961 (22 U.S.C. 2191j) is amended by

22 adding at the end the following new subsection:

23 ‘‘(i) MID-YEAR REPORT.—Not later than September

24 1 of each year, the President shall transmit to the appro25 priate committees of Congress a complete and detailed

26 mid-year report on the activities of each country not cer-
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1 tified under subsection (b)(1)(A) or granted a national in2 terest waiver under subsection (b)(1)(B). The report shall

3 include information relating to—

4 ‘‘(1) the progress each such country is making

5 in meeting the standards for cooperation described

6 in subsection (b) (1) and (2); and

7 ‘‘(2) the degree to which each such country

8 meets the conditions of subsection (f)(2).’’.

9 (c) CONSIDERATIONS REGARDING COOPERATION.—

10 Section 490(b)(2) of the Foreign Assistance Act of 1961

11 (22 U.S.C. 2291j(b)(2)) is amended—

12 (1) by striking ‘‘and’’ at the end of subpara13 graph (B);

14 (2) by striking the period at the end of sub15 paragraph (C) and inserting a semicolon; and

16 (3) by adding at the end the following new sub17 paragraphs:

18 ‘‘(D) adopted and is implementing an ef19 fective strategic plan to reduce or eliminate il20 licit cultivation, distribution, sale, transport,

21 and financing of narcotic and psychotropic

22 drugs, precursor chemicals, and other controlled

23 substances;

24 ‘‘(E) is permitting a representative from

25 the United States to be present and to certify
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1 the destruction of illicit narcotic, psychotropic,

2 precursor chemicals, and other controlled sub3 stances;

4 ‘‘(F) is permitting regular, unscheduled

5 site inspections by a representative of the Unit6 ed States of equipment loaned or leased to that

7 country by the United States;

8 ‘‘(G) is taking all necessary steps to ensure

9 the proper supervision of individuals in the cus10 tody of that country for narcotics-related activi11 ties or for money laundering and is taking all

12 appropriate steps to assure that such individ13 uals are not trafficking or engaging in money

14 laundering or other narcotics-related activities

15 while in custody; and

16 ‘‘(H) is taking all necessary steps to pre17 vent the diversion of United States assistance

18 or equipment, including fully cooperating with

19 United States officials responsible for monitor20 ing the use, maintenance, or location of United

21 States equipment.’’.

22 (d) ADDITIONAL REPORTING REQUIREMENTS.—Sec23 tion 489(a) of the Foreign Assistance Act (22 U.S.C.

24 2191h(a)), as amended by subsection (a), is amended by

25 adding at the end the following new paragraph:
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1 ‘‘(9)(A) In addition, for each country identified

2 pursuant to paragraph (3) (A) or (B), the Depart3 ment of State, or other appropriate negotiating

4 agency, shall notify the Committee on Foreign Rela5 tions of the Senate and the Committee on Inter6 national Relations of the House of Representatives

7 within 10 calendar days of reaching an agreement

8 on the extradition of an individual. The notification

9 shall contain the following:

10 ‘‘(i) The date the agreement was reached.

11 ‘‘(ii) The name of the countries, if applica12 ble, that are involved in the agreement, as well

13 as the citizenship of each individual who is to

14 be extradited.

15 ‘‘(iii) The name of each individual for

16 whom the extradition agreement was made, in17 cluding the charges pending against the individ18 ual.

19 ‘‘(iv) What, if any, arrangements have

20 been made by the United States in order to

21 conclude or facilitate the extradition agreement.

22 ‘‘(v) The date that each extradition is to

23 occur.

24 ‘‘(B) The notification described in subpara25 graph (A) may be waived if the notification would
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1 compromise the national security interests of the

2 United States, and the appropriate committees of

3 the Congress are notified in writing of the waiver.

4 Notification shall be made once national security in5 terests are no longer threatened and shall be accom6 panied with an appropriate explanation of the rea7 sons for the original waiver.’’.

8 SEC. 3. STRENGTHENING TRADE SANCTIONS.

9 (a) REQUIRED TRADE SANCTIONS.—Section 802 of

10 the Trade Act of 1974 (19 U.S.C. 2492) is amended—

11 (1) by striking subsections (d) and (e); and

12 (2) by inserting after subsection (c) the follow13 ing new subsections:

14 ‘‘(d) REQUIRED TRADE SANCTIONS.—

15 ‘‘(1) IN GENERAL.—

16 ‘‘(A) RECOMMENDATIONS.—Notwithstand17 ing subsections (a) and (b), not later than April

18 1 of each year, the Secretary of State, in con19 sultation with the United States Trade Rep20 resentative and appropriate agencies, shall rec21 ommend to the President the imposition of one

22 or more of the trade sanctions described in

23 paragraph (2) in the case of a country de24 scribed in subparagraph (B).
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1 ‘‘(B) COUNTRY DESCRIBED.—A country is

2 described in this subparagraph if—

3 ‘‘(i) it is—

4 ‘‘(I) a major illicit drug produc5 ing country; or

6 ‘‘(II) a major drug-transit coun7 try; and

8 ‘‘(ii) with respect to such country, for

9 3 consecutive years—

10 ‘‘(I) the President—

11 ‘‘(aa) does not make a cer12 tification pursuant to section

13 490(b)(1)(A) of the Foreign As14 sistance Act of 1961; or

15 ‘‘(bb) grants a national in16 terest waiver under section

17 490(b)(1)(B) of such Act; or

18 ‘‘(II) if the President makes such

19 certification or grants such waiver,

20 the Congress enacts a joint resolution

21 under section 490(d) of such Act dis22 approving the action of the President.

23 ‘‘(2) REQUIRED TRADE SANCTIONS.—
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1 ‘‘(A) IN GENERAL.—A trade sanction de2 scribed in this paragraph means with respect to

3 a country described in paragraph (1)(B)—

4 ‘‘(i) denial of nondiscriminatory treat5 ment or preferential tariff treatment to

6 any or all of the 5 major products of the

7 country under title V (relating to the Gen8 eralized System of Preferences), the Carib9 bean Basin Economic Recovery Act, the

10 Andean Trade Preference Act, or any

11 other law providing preferential tariff

12 treatment;

13 ‘‘(ii) application of an additional duty

14 at a rate not to exceed 50 percent ad valo15 rem, or the specific rate equivalent, to any

16 or all of the 5 major dutiable products of

17 the country;

18 ‘‘(iii) application of a duty at a rate

19 not to exceed 50 percent ad valorem to one

20 or more of the 5 major duty-free products

21 of the country;

22 ‘‘(iv) implementation of the steps de23 scribed in subsection (g) (1) or (2), or

24 both, to curtail air transportation between

25 the United States and the country;
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1 ‘‘(v) withdrawal of the personnel and

2 resources of the United States from par3 ticipation in any arrangement with the

4 country for the preclearance of customs by

5 visitors between the United States and the

6 country;

7 ‘‘(vi) denial of trade benefits under

8 any agreement between that country and

9 the United States establishing a free trade

10 area;

11 ‘‘(vii) refusal to continue to negotiate

12 with that country for purposes of establish13 ing a free trade area;

14 ‘‘(viii) notwithstanding any other pro15 vision of law, denial or imposition of re16 strictions on immigrant and nonimmigrant

17 visas requested by nationals of that coun18 try;

19 ‘‘(ix) imposition of stricter inspection

20 standards on the products of that country,

21 including inspection of at least 35 percent

22 of the products of that country;

23 ‘‘(x) denial of export of United States

24 products to that country or importation

25 into the United States of products that are
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1 the product, growth, or manufacture of

2 that country; or

3 ‘‘(xi) any combination of the actions

4 described in clauses (i) through (x).

5 ‘‘(B) REQUIREMENT FOR IMPOSITION OF

6 SANCTIONS.—Not later than 10 days after the

7 date the recommendations are submitted under

8 paragraph (1)(A), the President shall report to

9 the Congress which sanctions the President in10 tends to implement under this subsection and

11 not later than 90 days after the date of such

12 report, the President shall take at least one of

13 the actions described in subparagraph (A) with

14 respect to a country described in paragraph

15 (1)(B).

16 ‘‘(3) 5 MAJOR PRODUCTS.—For purposes of this

17 subsection, the term ‘‘5 major products’’ means the

18 top 5 products by dollar value imported from a

19 country described in paragraph (1) as identified in

20 the most recent report filed under section 489(a)(8)

21 of the Foreign Assistance Act of 1961.

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

23 the President under subsection (d)(2)(A) (i), (ii), (iii), or

24 (iv) shall apply to the products of a foreign country that
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1 are entered, or withdrawn from warehouse for consump2 tion, during the period that such action is in effect.

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

4 President under subsection (d)(2)(A) against a country

5 shall remain in effect until—

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

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

8 Assistance Act of 1961, if appropriate—

9 ‘‘(A) makes a certification under section

10 490(b)(1)(A) of the Foreign Assistance Act of

11 1961 with respect to that country, if the action

12 was taken under subsection (d)(2)(B); and

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

14 resolution under section 490(d) of such Act dis15 approving the determination of the President

16 contained in that certification; or

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

18 the certification described in section 490(b)(1)(B) of

19 such Act with respect to that country, except that

20 this paragraph applies only if either—

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

22 ‘‘(i) that country has undergone a

23 fundamental change in the government; or
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1 ‘‘(ii) there has been a fundamental

2 change in the conditions that were the rea3 son—

4 ‘‘(I) why the President had not

5 made a certification with respect to

6 that country under section

7 490(b)(1)(A) of such Act; or

8 ‘‘(II) in any case in which the

9 Congress enacted a joint resolution

10 disapproving the determination con11 tained in the certification, why the

12 Congress enacted that joint resolution;

13 and

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

15 resolution disapproving the determination con16 tained in the certification under section

17 490(b)(1)(B) of such Act.

18 Any certification under subparagraph (A) of para19 graph (2) shall be accompanied by a statement justi20 fying the determination contained in the certifi21 cation.

22 ‘‘(g) PRESIDENTIAL ACTION REGARDING AVIA23 TION.—

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

25 President is authorized to notify the government of
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1 a country against which is imposed the sanction de2 scribed in subsection (d)(2)(A)(iv)) of the Presi3 dent’s intention to suspend the authority of foreign

4 air carriers owned or controlled by the government

5 or nationals of that country to engage in foreign air

6 transportation to or from the United States.

7 ‘‘(B) Within 10 days after the date of notifica8 tion of a government under subparagraph (A), the

9 Secretary of Transportation shall take all steps nec10 essary to suspend at the earliest possible date the

11 authority of any foreign air carrier owned or con12 trolled, directly or indirectly, by the government or

13 nationals of that country to engage in foreign air

14 transportation to or from the United States, not15 withstanding any agreement relating to air services.

16 ‘‘(C) The President may also direct the Sec17 retary of Transportation to take such steps as may

18 be necessary to suspend the authority of any air car19 rier to engage in foreign air transportation between

20 the United States and that country.

21 ‘‘(2) TERMINATION OF AIR SERVICE AGREE22 MENT.—(A) The President may direct the Secretary

23 of State to terminate any air service agreement be24 tween the United States and a country against

25 which a sanction described in subsection (d)(2)(A) is
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1 imposed in accordance with the provisions of that

2 agreement.

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

4 this paragraph, the Secretary of Transportation

5 shall take such steps as may be necessary to revoke

6 at the earliest possible date the right of any foreign

7 air carrier owned or controlled, directly or indirectly,

8 by the government or nationals of that country to

9 engage in foreign air transportation to or from the

10 United States.

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

12 this paragraph, the Secretary of Transportation may

13 also revoke the authority of any air carrier to engage

14 in foreign air transportation between the United

15 States and that country.

16 ‘‘(3) EXCEPTIONS.—The Secretary of Trans17 portation may provide for such exceptions from

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

19 necessary to provide for emergencies in which the

20 safety of an aircraft or its crew or passengers is

21 threatened.

22 ‘‘(h) NOTIFICATION.—

23 ‘‘(1) IN GENERAL.—The President shall notify

24 the appropriate congressional committees any time

25 an action is taken under subsection (d) with respect
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1 to a major illicit drug producing or major drug-tran2 sit country.

3 ‘‘(2) MODIFICATION OR SUSPENSION OF AC4 TION.—The President shall also notify the appro5 priate congressional committees any time an action

6 taken under subsection (d) with respect to a major

7 illicit drug producing or major drug-transit country

8 is modified or suspended.

9 ‘‘(i) DEFINITIONS.—For purposes of this section:

10 ‘‘(1) APPROPRIATE CONGRESSIONAL COMMIT11 TEES.—The term ‘appropriate congressional com12 mittees’ means the Committee on Ways and Means

13 and the Committee on International Relations of the

14 House of Representatives and the Committee on Fi15 nance and the Committee on Foreign Relations of

16 the Senate.

17 ‘‘(2) FOREIGN AIR TRANSPORTATION, ETC.—

18 The terms ‘air transportation’, ‘air carrier’, ‘foreign

19 air carrier’, and ‘foreign air transportation’ have the

20 meanings such terms have under section 101 of the

21 Federal Aviation Act of 1958 (49 U.S.C. App.

22 1301).

23 ‘‘(3) MAJOR ILLICIT DRUG PRODUCING COUN24 TRY, ETC.—The terms ‘major illicit drug producing

25 country’ and ‘major drug-transit country’ have the
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1 meanings such terms have under section 481(e) of

2 the Foreign Assistance Act of 1961 (22 U.S.C.

3 2291(e)).’’.

4 (b) CONFORMING AMENDMENTS.—Section 802(a) of

5 the Trade Act of 1974 (19 U.S.C. 2491(a)) is amended—

6 (1) by striking ‘‘Subject to’’ and inserting ‘‘Ex7 cept as provided in subsection (d) and subject to’’;

8 and

9 (2) in paragraph (4), by striking ‘‘(d)(1) and

10 (d)(2)’’ and inserting ‘‘(g)(1) and (g)(2)’’.

11 SEC. 4. INTERNATIONAL NARCOTICS CONTROL STRATEGY

12 REPORT.

13 (a) REPORTS ON CERTAIN COUNTRIES.—Section

14 489(a) of the Foreign Assistance Act of 1961 (22 U.S.C.

15 2291h(a)), as amended by section 2, is amended by adding

16 at the end the following new paragraph:

17 ‘‘(10) In addition, for each country identified

18 under subparagraph (A), (B), or (C) of paragraph

19 (3) for which the President is making a certification

20 under section 490, information regarding—

21 ‘‘(A) what actions, if any, the United

22 States has taken with regard to a country

23 under section 487 and how the country has

24 been affected by the President’s implementation

25 of section 487; and
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1 ‘‘(B) how the country has been economi2 cally affected by the production and trafficking

3 in narcotic and psychotropic drugs and con4 trolled substances.

5 The report shall include information regarding the

6 size of the illegal drug economy.’’.

7 (b) GENERAL REPORTING REQUIREMENTS.—Section

8 489(a)(2) of such Act (22 U.S.C. 2291h(a)(2)) is amend9 ed by adding at the end the following new subparagraphs:

10 ‘‘(C) Information regarding the steps the

11 President is taking to implement section 487.

12 ‘‘(D) Information regarding the use of any

13 equipment made available to a foreign country

14 by the United States.’’.

15 (c) DETERMINATION OF MAJOR MONEY LAUNDER16 ING COUNTRY.—Section 490(h) of such Act (22 U.S.C.

17 2291j(h)) is amended by adding at the end the following:

18 ‘‘For purposes of this chapter and section 802 of the

19 Trade Act of 1974, any country identified as a major

20 money laundering country in the report required under

21 section 489(a)(3)(C) shall be treated as a major drug22 transit country or a major illicit drug producing country.’’.
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1 SEC. 5. DEFENSES OF THE UNITED STATES UNDER EXIST2 ING TRADE AGREEMENTS.

3 If proceedings are initiated by a country against the

4 United States in the World Trade Organization or under

5 the North American Free Trade Agreement with respect

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

7 of 1974 (19 U.S.C. 2491 et seq.), the President shall in8 voke all applicable defenses in such proceedings, including

9 exceptions for measures necessary to protect the national

10 security of the United States and to protect human, ani11 mal or plant life, or health.

12 SEC. 6. SPECIAL RULE FOR APPLICATION OF SECTION

13 802(d).

14 Section 802(d) of the Trade Act of 1974, as added

15 by section 3(a) of this Act, shall apply to countries de16 scribed in paragraph (1)(B) of such section 802(d) with

17 respect to which for 3 consecutive years beginning on or

18 after January 1, 1995—

19 (1) the President—

20 (A) does not make a certification pursuant

21 to section 490(b)(1)(A) of the Foreign Assist22 ance Act of 1961; or

23 (B) grants a national interest waiver under

24 section 490(b)(1)(B) of such Act; or

25 (2) if the President makes such certification or

26 grants such waiver, the Congress enacts a joint reso-
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1 lution under section 490(d) of such Act disapproving

2 the action of the President.