II 

116TH CONGRESS 

1ST SESSION S. 1965 

To authorize actions with respect to foreign countries engaged in illicit trade 

in tobacco products or their precursors, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 25, 2019 

Mr. WICKER (for himself and Ms. SINEMA) introduced the following bill; which 

was read twice and referred to the Committee on Foreign Relations 

A BILL 

To authorize actions with respect to foreign countries engaged in illicit trade in tobacco products or their precursors, 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 ‘‘Combating the Illicit 

5 Trade in Tobacco Products Act’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 

8 (1) APPROPRIATE CONGRESSIONAL COMMIT9 TEES.—The term ‘‘appropriate congressional com10 mittees’’ means— 


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1 (A) the Committee on Financial Services, 

2 the Committee on Foreign Affairs, and the 

3 Committee on the Judiciary of the House of 

4 Representatives; and 

5 (B) the Committee on Banking, Housing, 

6 and Urban Affairs, the Committee on Foreign 

7 Relations, and the Committee on the Judiciary 

8 of the Senate. 

9 (2) FOREIGN PERSON.—The term ‘‘foreign per10 son’’ means a person that is not a United States 

11 person. 

12 (3) ILLICIT TRADE IN TOBACCO PRODUCTS OR

13 THEIR PRECURSORS.—The term ‘‘illicit trade in to14 bacco products or their precursors’’ means any prac15 tice or conduct prohibited by law that relates to pro16 duction, shipment, receipt, possession, distribution, 

17 sale, or purchase of tobacco products or their pre18 cursors, including any practice or conduct intended 

19 to facilitate such activity. 

20 (4) PERSON.—The term ‘‘person’’ means an in21 dividual or entity. 

22 (5) UNITED STATES PERSON.—The term 

23 ‘‘United States person’’ means— 


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1 (A) a United States citizen or an alien law2 fully admitted for permanent residence to the 

3 United States; or 

4 (B) an entity organized under the laws of 

5 the United States or of any jurisdiction within 

6 the United States, including a foreign branch of 

7 such an entity. 

8 SEC. 3. FINDINGS. 

9 Congress makes the following findings: 

10 (1) The illicit trade in tobacco products or their 

11 precursors is a multibillion dollar business that fuels 

12 organized crime, fosters public corruption, under13 mines public health goals, and finances terrorist 

14 groups that threaten global security and stability. 

15 (2) According to an estimate by the World 

16 Health Organization, one in every 10 cigarettes 

17 smoked is illegal. 

18 (3) The Center for Public Integrity states, 

19 ‘‘while one 40-foot container of cigarettes (con20 taining 10 million sticks) can be produced in China 

21 for just $100,000, the street value of such a con22 tainer smuggled into the United States is up to $2 

23 million.’’. 

24 (4) According to the International Criminal Po25 lice Organization (commonly known as ‘‘Interpol’’), 


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1 the trade in illicit cigarettes accounts for 11.6 per2 cent of global consumption, equaling 

3 657,000,000,000 cigarettes a year. 

4 (5) According to the Department of State re5 port entitled ‘‘The Global Illicit Trade in Tobacco: 

6 A Threat to National Security’’, cigarette smuggling 

7 enables corruption and undermines good governance. 

8 (6) According to that Department of State re9 port, illicit trade in tobacco products or their precur10 sors costs governments and taxpayers between 

11 $40,000,000,000 and $50,000,000,000 annually in 

12 tax revenues. 

13 (7) According to that Department of State re14 port, the illicit trade in tobacco products or their 

15 precursors facilitates other crimes and provides 

16 funding for additional criminal activities, including 

17 money laundering, bulk cash smuggling, and the 

18 trafficking in humans, weapons, drugs, antiquities, 

19 diamonds, and counterfeit goods. 

20 (8) The report entitled ‘‘Illicit Trade: Con21 verging Criminal Networks’’ by the Organisation for 

22 Economic Co-operation and Development stated that 

23 cigarettes present a high-profit margin and are 

24 among the most commonly traded products on the 

25 black market due to the relative ease of production 


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1 and movement, along with low detection rates and 

2 penalties. 

3 (9) According to the Department of State re4 port entitled, ‘‘The Global Illicit Trade in Tobacco: 

5 A Threat to National Security’’, illicit trade in to6 bacco products or their precursors can be transna7 tional, with proceeds earned domestically and sent 

8 overseas to finance attacks against United States in9 terests, or earned domestically by foreign actors who 

10 can operate more easily from within the country. 

11 (10) The Center for the Analysis of Terrorism 

12 reports that nearly 15 terrorist organizations 

13 throughout the world regularly have recourse in 

14 large proportions to smuggling and counterfeiting 

15 cigarettes to be financed, in particular the Pakistani 

16 Taliban, Lashkar-E–Taiba, Al-Qaida au Maghreb 

17 Islamique, Hezbollah, Hamas, the Revolutionary 

18 Armed Forces of Colombia, the Kurdistan Workers’ 

19 Party, Euskadi Ta Askatasuna, and the Irish Re20 publican Army. 


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1 SEC. 4. DESIGNATION OF AND ACTIONS WITH RESPECT TO 

2 FOREIGN COUNTRIES ENGAGED IN ILLICIT 

3 TRADE IN TOBACCO PRODUCTS OR THEIR 

4 PRECURSORS. 

5 (a) DESIGNATION.—Not later than one year after the 

6 date of the enactment of this Act, and annually thereafter, 

7 the Secretary of State, in consultation with the Secretary 

8 of Defense, the Attorney General, and the Secretary of 

9 the Treasury, shall— 

10 (1) review the status of illicit trade in tobacco 

11 products or their precursors in each foreign country 

12 to determine whether— 

13 (A) the country is a major source, point of 

14 transit, or consumer of illicit tobacco products 

15 or their precursors; or 

16 (B)(i) the country meets the criteria of 

17 subparagraph (A); and 

18 (ii) the government of the country has ac19 tively engaged in or knowingly profited from the 

20 illicit trade in tobacco products or their precur21 sors; 

22 (2) designate each foreign country that— 

23 (A) meets the criteria of subparagraph (A) 

24 of paragraph (1) as a focus country for illicit 

25 trade in tobacco products or their precursors 


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1 for purposes of providing assistance to the 

2 country under subsection (b); and 

3 (B) meets the criteria of subparagraph (B) 

4 of paragraph (1) as a country of concern for il5 licit trade in tobacco products or their precur6 sors for purposes of withholding United States 

7 development assistance and security assistance 

8 to the country under subsection (c); and 

9 (3) submit to the appropriate congressional 

10 committees a report that includes— 

11 (A) a list that identifies each foreign coun12 try designated as a focus country for illicit 

13 trade in tobacco products or their precursors 

14 under paragraph (2)(A); and 

15 (B) a list that identifies each foreign coun16 try designated as a country of concern for illicit 

17 trade in tobacco products or their precursors 

18 under paragraph (2)(B). 

19 (b) ASSISTANCE TO FOCUS COUNTRIES.— 

20 (1) LAW ENFORCEMENT PROFESSIONAL TRAIN21 ING.—The Secretary of State, in coordination with 

22 the heads of other relevant United States depart23 ments and agencies and nongovernmental organiza24 tions where appropriate, is authorized to provide as25 sistance to foreign countries designated as focus 


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1 countries for illicit trade in tobacco products or their 

2 precursors under subsection (a)(2)(A) to improve the 

3 effectiveness of law enforcement to combat the illicit 

4 trade in tobacco products or their precursors. 

5 (2) INVESTIGATIVE CAPACITY BUILDING.—The 

6 Secretary of State, in coordination with the heads of 

7 other relevant United States departments and agen8 cies, is authorized to establish and carry out pro9 grams to increase the capacity of law enforcement 

10 and customs and border security offices in foreign 

11 countries designated as focus countries for illicit 

12 trade in tobacco products or their precursors under 

13 subsection (a)(2)(A). 

14 (c) PROHIBITION ON ASSISTANCE TO COUNTRIES OF

15 CONCERN.— 

16 (1) IN GENERAL.—The Secretary of State may 

17 not provide development assistance or security as18 sistance to foreign countries designated as countries 

19 of concern for illicit trade in tobacco products or 

20 their precursors under subsection (a)(2)(B). 

21 (2) WAIVER.—The Secretary of State may 

22 waive the application of paragraph (1) with respect 

23 to a foreign country described in paragraph (1) if 

24 the Secretary determines and certifies to the appro25 priate congressional committees that such waiver is 


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1 in the national security interests of the United 

2 States. 

3 (3) DEFINITIONS.—In this subsection: 

4 (A) DEVELOPMENT ASSISTANCE.—The 

5 term ‘‘development assistance’’ means assist6 ance authorized under— 

7 (i) chapter 1 or 10 of part I of the 

8 Foreign Assistance Act of 1961 (22 U.S.C. 

9 2151 et seq. or 2293 et seq.); or 

10 (ii) chapter 4 of part II of such Act 

11 (22 U.S.C. 2346 et seq.). 

12 (B) SECURITY ASSISTANCE.—The term 

13 ‘‘security assistance’’ means assistance author14 ized under part II of the Foreign Assistance 

15 Act of 1961 (22 U.S.C. 2301 et seq.). 

16 SEC. 5. IMPOSITION OF SANCTIONS WITH RESPECT TO FOR17 EIGN PERSONS RESPONSIBLE FOR ILLICIT 

18 TRADE IN TOBACCO PRODUCTS OR THEIR 

19 PRECURSORS. 

20 (a) IN GENERAL.—The President is authorized to 

21 impose the sanctions described in subsection (b) with re22 spect to any foreign person the President determines, 

23 based on credible evidence— 

24 (1) is responsible for illicit trade in tobacco 

25 products or their precursors; 


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1 (2) acted as an agent of or on behalf of a for2 eign person in a matter relating to an activity de3 scribed in paragraph (1); 

4 (3) is a government official, or a senior asso5 ciate of such an official, that is responsible for, or 

6 complicit in, ordering, controlling, or otherwise di7 recting, the illicit trade in tobacco products or their 

8 precursors, including acts of significant corruption, 

9 bribery, or the facilitation or transfer of the pro10 ceeds of corruption to foreign jurisdictions; or 

11 (4) has materially assisted, sponsored, or pro12 vided financial, material, or technological support 

13 for, or goods or services in support of, an activity 

14 described in paragraph (1), (2), or (3). 

15 (b) SANCTIONS DESCRIBED.—The sanctions de16 scribed in this subsection are the following: 

17 (1) INADMISSIBILITY TO UNITED STATES.—In 

18 the case of a foreign person who is an individual— 

19 (A) ineligibility to receive a visa to enter 

20 the United States or to be admitted to the 

21 United States; or 

22 (B) if the individual has been issued a visa 

23 or other documentation, revocation, in accord24 ance with section 221(i) of the Immigration and 


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1 Nationality Act (8 U.S.C. 1201(i)), of the visa 

2 or other documentation. 

3 (2) BLOCKING OF PROPERTY.— 

4 (A) IN GENERAL.—The blocking, in ac5 cordance with the International Emergency 

6 Economic Powers Act (50 U.S.C. 1701 et seq.), 

7 of all transactions in all property and interests 

8 in property of a foreign person if such property 

9 and interests in property are in the United 

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

11 come within the possession or control of a 

12 United States person. 

13 (B) INAPPLICABILITY OF NATIONAL EMER14 GENCY REQUIREMENT.—The requirements of 

15 section 202 of the International Emergency 

16 Economic Powers Act (50 U.S.C. 1701) shall 

17 not apply for purposes of this section. 

18 (C) EXCEPTION RELATING TO IMPORTA19 TION OF GOODS.— 

20 (i) IN GENERAL.—The authority to 

21 block and prohibit all transactions in all 

22 property and interests in property under 

23 subparagraph (A) shall not include the au24 thority to impose sanctions on the importa25 tion of goods. 


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1 (ii) GOOD DEFINED.—In this subpara2 graph, the term ‘‘good’’ means any article, 

3 natural or man-made substance, supply or 

4 manufactured product, including inspection 

5 and test equipment, and excluding tech6 nical data. 

7 (c) CONSIDERATION OF CERTAIN INFORMATION IN

8 IMPOSING SANCTIONS.—In determining whether to im9 pose sanctions under subsection (a), the President shall 

10 consider— 

11 (1) information provided by the chairperson and 

12 ranking member of each of the appropriate congres13 sional committees; and 

14 (2) credible information obtained by other coun15 tries and nongovernmental organizations that mon16 itor violations of human rights. 

17 (d) REQUESTS BY CHAIRPERSON AND RANKING

18 MEMBER OF APPROPRIATE CONGRESSIONAL COMMIT19 TEES.—Not later than 120 days after receiving a written 

20 request from the chairperson and ranking member of one 

21 of the appropriate congressional committees with respect 

22 to whether a foreign person has engaged in an activity 

23 described in subsection (a), the President shall— 

24 (1) determine if that person has engaged in 

25 such an activity; and 


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1 (2) submit to the chairperson and ranking 

2 member of that committee with respect to that de3 termination a report that includes— 

4 (A) a statement of whether or not the 

5 President imposed or intends to impose sanc6 tions with respect to the person; and 

7 (B) if the President imposed or intends to 

8 impose sanctions, a description of those sanc9 tions. 

10 (e) EXCEPTION TO COMPLY WITH UNITED NATIONS

11 HEADQUARTERS AGREEMENT AND LAW ENFORCEMENT

12 OBJECTIVES.—Sanctions under subsection (b)(1) shall 

13 not apply to an individual if admitting the individual into 

14 the United States would further important law enforce15 ment objectives or is necessary to permit the United 

16 States to comply with the Agreement regarding the Head17 quarters of the United Nations, signed at Lake Success 

18 June 26, 1947, and entered into force November 21, 

19 1947, between the United Nations and the United States, 

20 or other applicable international obligations of the United 

21 States. 

22 (f) ENFORCEMENT OF BLOCKING OF PROPERTY.— 

23 A person that violates, attempts to violate, conspires to 

24 violate, or causes a violation of subsection (b)(2) or any 

25 regulation, license, or order issued to carry out subsection 


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1 (b)(2) shall be subject to the penalties set forth in sub2 sections (b) and (c) of section 206 of the International 

3 Emergency Economic Powers Act (50 U.S.C. 1705) to the 

4 same extent as a person that commits an unlawful act de5 scribed in subsection (a) of that section. 

6 (g) TERMINATION OF SANCTIONS.—The President 

7 may terminate the application of sanctions under this sec8 tion with respect to a foreign person if the President deter9 mines and reports to the appropriate congressional com10 mittees not later than 15 days before the termination of 

11 the sanctions that— 

12 (1) credible information exists that the person 

13 did not engage in the activity for which sanctions 

14 were imposed; 

15 (2) the person has been prosecuted appro16 priately for the activity for which sanctions were im17 posed; 

18 (3) the person has credibly demonstrated a sig19 nificant change in behavior, has paid an appropriate 

20 consequence for the activity for which sanctions were 

21 imposed, and has credibly committed to not engage 

22 in an activity described in subsection (a) in the fu23 ture; or 

24 (4) the termination of the sanctions is in the 

25 vital national security interests of the United States. 


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1 (h) REGULATORY AUTHORITY.—The President shall 

2 issue such regulations, licenses, and orders as are nec3 essary to carry out this section. 

4 (i) IDENTIFICATION OF SANCTIONABLE FOREIGN

5 PERSONS.—The Assistant Secretary of State for Inter6 national Narcotics and Law Enforcement Affairs, in con7 sultation with the Assistant Secretary of State for Con8 sular Affairs and other bureaus of the Department of 

9 State, as appropriate, is authorized to submit to the Sec10 retary of State, for review and consideration, the names 

11 of foreign persons who may meet the criteria described 

12 in subsection (a). 

13 SEC. 6. REPORTS TO CONGRESS. 

14 (a) IN GENERAL.—Not later than 120 days after the 

15 date of the enactment of this Act and annually thereafter, 

16 the President shall submit to the appropriate congres17 sional committees a report that includes— 

18 (1) a list of each foreign person with respect to 

19 which the President imposed sanctions pursuant to 

20 section 5 during the year preceding the submission 

21 of the report; 

22 (2) a description of the type of sanctions im23 posed with respect to each such foreign person; 

24 (3) the number of foreign persons with respect 

25 to which the President— 


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1 (A) imposed sanctions under section 5 dur2 ing that year; and 

3 (B) terminated sanctions under section 5 

4 during that year; 

5 (4) the dates on which such sanctions were im6 posed or terminated, as the case may be; 

7 (5) the reasons for imposing or terminating 

8 such sanctions; and 

9 (6) a description of the efforts of the President 

10 to encourage the governments of other countries to 

11 impose sanctions that are similar to the sanctions 

12 authorized by section 5. 

13 (b) FORM OF REPORT.— 

14 (1) IN GENERAL.—Each report required by 

15 subsection (a) shall be submitted in unclassified 

16 form, but may include a classified annex. 

17 (2) EXCEPTION.—The name of a foreign person 

18 to be included in the list required by subsection 

19 (a)(1) may be submitted in the classified annex au20 thorized by paragraph (1) only if the President— 

21 (A) determines that it is vital for the na22 tional security interests of the United States to 

23 do so; 


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1 (B) uses the annex in a manner consistent 

2 with congressional intent and the purposes of 

3 this Act; and 

4 (C) not later than 15 days before submit5 ting the name in a classified annex, provides to 

6 the appropriate congressional committees notice 

7 of, and a justification for, including the name 

8 in the classified annex despite any publicly 

9 available credible information indicating that 

10 the person engaged in an activity described in 

11 section 5(a). 

12 (c) PUBLIC AVAILABILITY.— 

13 (1) IN GENERAL.—The unclassified portion of 

14 the report required by subsection (a) shall be made 

15 available to the public, including through publication 

16 in the Federal Register. 

17 (2) NONAPPLICABILITY OF CONFIDENTIALITY

18 REQUIREMENT WITH RESPECT TO VISA RECORDS.— 

19 The President shall publish the list required by sub20 section (a)(1) without regard to the requirements of 

21 section 222(f) of the Immigration and Nationality 

22 Act (8 U.S.C. 1202(f)) with respect to confiden23 tiality of records pertaining to the issuance or re24 fusal of visas or permits to enter the United States. 

Æ 


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