of the Arms Export Control Act or section 11B(b)(1) of 
the Export Administration Act of 1979, as continued in 
effect under the International Emergency Economic Pow-
ers Act, by reason of acts giving rise to such sanctions 
that were committed by foreign persons on or after Janu-
ary 1, 2003. 
SEC. 203. COMPREHENSIVE UNITED STATES MISSILE PRO-
LIFERATION SANCTIONS ON ALL RESPON-
SIBLE PERSONS. 
(a) ARMS EXPORT CONTROL ACT.—Section 73(a) of 
the Arms Export Control Act (22 U.S.C. 2797b(a)) is 
amended by adding at the end the following new para-
graph: 
‘‘(3)(A) Sanctions imposed upon a foreign person 
under paragraph (2) shall also be imposed on any govern-
mental entity that the President determines exercises ef-
fective control over, benefits from, or directly or indirectly 
facilitates the activities of that foreign person. 
‘‘(B) When a sanction is imposed on a foreign person 
under paragraph (2), the President may also impose that 
sanction on any other person or entity that the President 
has reason to believe has or may acquire items that may 
not be exported to that foreign person on account of the 
sanction imposed on that foreign person, with the intent
to transfer to that foreign person, or provide to that for-
eign person access to, such items. 
‘‘(C) The President may also prohibit, for such period 
of time as he may determine, any transaction or dealing, 
by a United States person or within the United States, 
with any foreign person on whom sanctions have been im-
posed under this subsection. 
‘‘(D) The President shall report on an annual basis 
to the Committee on International Relations of the House 
of Representatives and the Committee on Foreign Rela-
tions of the Senate the identity of any foreign person that 
engages in any transaction or activity with a foreign per-
son on whom sanctions have been imposed under this sub-
section that either—
‘‘(i) would be the basis for imposing sanctions 
under subparagraph (B) but for which sanctions 
have not been imposed; or 
‘‘(ii) would be the basis for imposing sanctions 
under subparagraph (C) if the transaction or activity 
had been carried out by a United States person or 
by a person in the United States. 
Such report shall be unclassified to the maximum extent 
feasible, but may include a classified annex.’’.
(b) DEFINITION OF PERSON.—Section 74(a)(8)(A) of 
the Arms Export Control Act (22 U.S.C. 2797c(a)(8)(A)) 
is amended to read as follows: 
‘‘(8)(A) the term ‘person’ means—
‘‘(i) a natural person; 
‘‘(ii) a corporation, business association, 
partnership, society, trust, transnational cor-
poration, or transnational joint venture, any 
other nongovernmental entity, organization, or 
group, and any governmental entity; 
‘‘(iii) any subsidiary, subunit, or parent en-
tity of any business enterprise or other organi-
zation or entity listed in clause (ii); and 
‘‘(iv) any successor of any business enter-
prise or other organization or entity listed in 
clause (ii) or (iii); and’’. 
(c) EXPORT ADMINISTRATION ACT OF 1979.—
(1) SANCTIONS IMPOSED ON GOVERNMENT EN-
TITIES.—Any sanction imposed on a foreign person 
under section 11B(b)(1)(B) of the Export Adminis-
tration 
Act 
of 
1979 
(50 
U.S.C. 
App. 
2410b(b)(1)(B)), as continued in effect under the 
International Emergency Economic Powers Act (in 
this subsection referred to as a ‘‘dual use sanction’’), 
shall also be imposed on any governmental entity
that the President determines exercises effective con-
trol over, benefits from, or directly or indirectly fa-
cilitates the activities of that foreign person. 
(2) OTHER ENTITIES.—When a dual use sanc-
tion is imposed on a foreign person, the President 
may also impose that sanction on any other person 
or entity that the President has reason to believe 
has or may acquire items that may not be exported 
to that foreign person on account of the dual use 
sanction imposed on that foreign person, with the in-
tent to transfer to that foreign person, or provide to 
that foreign person access to, such items. 
(3) TRANSACTIONS BY THIRD PARTIES.—The 
President may also prohibit, for such period of time 
as he may determine, any transaction or dealing, by 
a United States person or within the United States, 
with any foreign person on whom dual use sanctions 
have been imposed.
(4) REPORT.—The President shall submit on 
an annual basis to the appropriate congressional 
committees a report that contains the identity of any 
foreign person that engages in any transaction or 
activity with a foreign person on whom dual use 
sanctions have been imposed that either—
(A) would be the basis for imposing dual 
use sanctions under paragraph (2) but for 
which such sanctions have not been imposed; or 
(B) would be the basis for imposing dual 
use sanctions under paragraph (3) if the trans-
action or activity had been carried out by a 
United States person or by a person in the 
United States. 
Such report shall be unclassified to the maximum 
extent feasible, but may include a classified annex. 
(5) DEFINITIONS.—In this subsection: 
(A) 
PERSON.—The 
term 
‘‘person’’ 
means—
(i) a natural person; 
(ii) a corporation, business associa-
tion, 
partnership, 
society, 
trust, 
transnational corporation, or transnational 
joint venture, any other nongovernmental 
entity, organization, or group, and any 
governmental entity; 
(iii) any subsidiary, subunit, or parent 
entity of any business enterprise or other 
organization or entity listed in clause (ii); 
and
(iv) any successor of any business en-
terprise or other organization or entity list-
ed in clause (ii) or (iii). 
(B) In the case of countries where it may 
be impossible to identify a specific governmental 
entity referred to in subparagraph (A), the 
term ‘‘person’’ means—
(i) all activities of that government re-
lating to the development or production of 
any missile equipment or technology; and 
(ii) all activities of that government 
affecting the development or production of 
aircraft, electronics, and space systems or 
equipment. 
(B) UNITED STATES PERSON.—The term 
‘‘United States person’’ has the meaning given 
that term in section 16(2) of the Export Ad-
ministration Act of 1979 (50 U.S.C. App. 
2415(2)). 
(C) 
MISSILE
EQUIPMENT
OR
TECH-
NOLOGY.—The term ‘‘missile equipment or 
technology’’ has the meaning given that term in 
section 11B(c) of the Export Administration 
Act of 1979 (50 U.S.C. App. 2410b(c)).
(d) EFFECTIVE DATE.—The amendments made by 
subsections (a) and (b) shall apply with respect to sanc-
tions imposed on or after January 1, 2003, on foreign per-
sons under section 73(a)(2) of the Arms Export Control 
Act, and the provisions of subsection (c) shall apply with 
respect to sanctions imposed on or after January 1, 2003, 
on foreign persons under section 11B(b) of the Export Ad-
ministration Act of 1979 (50 U.S.C. App. 2410b(b)), as 
continued in effect under the International Emergency 
Economic Powers Act. 
TITLE III—Incentives for Missile 
Threat Reduction 
SEC. 301. FOREIGN ASSISTANCE. 
(a) TYPES OF ASSISTANCE.—The President is au-
thorized to provide, on such terms as the President deems 
appropriate, the following assistance to countries that 
agree to destroy their ballistic missiles, and their facilities 
for producing ballistic missiles, that have a payload capac-
ity of 500 kilograms or more over a distance of 300 kilo-
meters or more: 
(1) Assistance under section 23 of the Arms 
Export Control Act (22 U.S.C. 2763). 
(2) Assistance under chapter 4 of part II of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2346 et
seq.), notwithstanding section 531(e) or 660(a) of 
that Act (22 U.S.C. 2346(e) or 2420(a)). 
(3) Drawdown of defense articles, defense serv-
ices, and military education and training under sec-
tion 506 of the Foreign Assistance Act of 1961 (22 
U.S.C. 2318). 
(b) CONGRESSIONAL NOTIFICATION.—Assistance au-
thorized under subsection (a) may not be provided until 
30 days after the date on which the President has pro-
vided notice thereof to the appropriate congressional com-
mittees in accordance with the procedures applicable to 
reprogramming notifications under section 634A(a) of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2394–1(a)). 
(c) LIMITATION.—Any assistance provided to a coun-
try under subsection (a) may not be provided in more than 
3 fiscal years. 
SEC. 302. AUTHORIZATION OF APPROPRIATIONS. 
(a) AUTHORIZATION.—There is authorized to be ap-
propriated to the President to carry out section 301 the 
sum of $250,000,000. 
(b) AVAILABILITY.—Amounts appropriated pursuant 
to the authorization of appropriations under subsection (a) 
are authorized to remain available until expended.
SEC. 303. AUTHORIZATION OF TECHNICAL ASSISTANCE IN 
MISSILE DISARMAMENT. 
The President is authorized to provide technical as-
sistance in the destruction of any missile or facility for 
producing ballistic missiles, in any country that requests 
such assistance.
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