219
(A) nuclear enrichment or reprocessing 
equipment, materials, or technology to any non-
nuclear-weapon state (as defined in section 
102(c) of the Arms Export Control Act) that—
(i) does not possess functioning nu-
clear enrichment or reprocessing plants as 
of January 1, 2004; and 
(ii)(I) does not have in force an addi-
tional protocol with the International 
Atomic Energy Agency for the application 
of safeguards (as derived from IAEA docu-
ment INFCIRC/540 and related correc-
tions and additions); or 
(II) is developing, manufacturing, or 
acquiring a nuclear explosive device; or 
(B) any nuclear explosive device, or design 
information or component, equipment, mate-
rials, or other items or technology that—
(i) is designated for national export 
controls under the Nuclear Supplier Group 
Guidelines for the Export of Nuclear Mate-
rial, Equipment and Technology (published 
by the International Atomic Energy Agen-
cy as IAEA document INFCIRC/254/Rev. 
6/Part 1 and subsequent revisions) and the
220
Guidelines for Transfers of Nuclear-Re-
lated 
Dual-Use 
Equipment, 
Materials, 
Software and Related Technology (pub-
lished as IAEA document INFCIRC/254/
Rev. 5/ Part 2 and subsequent revisions); 
and 
(ii) contributes to the development, 
manufacture, or acquisition of a nuclear 
explosive device by—
(I) a non-nuclear weapon state; 
or 
(II) a foreign person. 
(2) DEFINITION.—For purposes of paragraph 
(1), the term ‘‘participated’’ means sold, transferred, 
brokered, financed, assisted, delivered, or otherwise 
provided or received, and includes any conspiracy or 
attempt to engage in any of such activities, as well 
as facilitating such activities by any other person. 
(b) SANCTIONS.—The sanctions referred to in sub-
section (a) that are to be imposed on a foreign person are 
the following: 
(1) No assistance may be provided to the for-
eign person under the Foreign Assistance Act of 
1961, and the foreign person may not participate in 
any assistance program of the United States Gov-
221
ernment. Any such assistance being provided to the 
foreign person, and any participation in such assist-
ance program by the foreign person, on the date on 
which the sanction under this paragraph is imposed 
shall be terminated as of such date. 
(2) The United States Government may not ex-
port to the foreign person, or grant a license or 
other approval to export to or import from the for-
eign person of, any defense articles, defense services, 
or design or construction services under the Foreign 
Assistance Act of 1961 or the Arms Export Control 
Act. Any contract to export such articles or services, 
or license or approval to export or import, under ei-
ther such Act, that is in effect on the date on which 
the sanction under this paragraph is imposed shall 
be terminated as of such date. 
(3) Licenses or any other approval may not be 
issued for the export to the foreign person of any 
goods or technology subject to the jurisdiction of the 
Export Administration Regulations under chapter 
VII of title 15, Code of Federal Regulations (or suc-
cessor regulations), other than food and other agri-
cultural commodities, medicines and medical equip-
ment. Any such license or approval that is in effect 
on the on the date on which the sanction under this
222
paragraph is imposed, shall be terminated as of such 
date. 
(4) No department or agency of the United 
States Government may procure, or enter into any 
contract for the procurement of, any goods or serv-
ices from the foreign person. The Secretary of the 
Treasury shall prohibit the importation into the 
United States of goods, technology, or services pro-
duced or provided by the foreign person, other than 
information or informational materials within the 
meaning of section 203(b)(3) of the International 
Emergency Economic Powers Act (50 U.S.C. 
1702(b)(3)). 
(c) PERIOD SANCTIONS IN EFFECT.—The sanctions 
referred to in subsection (b) should be imposed for not 
less than two years, but may be imposed for longer peri-
ods. The President may suspend after one year any sanc-
tion imposed pursuant to this section 15 days after sub-
mitting to the appropriate congressional committees a re-
port explaining—
(1) the reasons for suspending the sanction; 
(2) how the purposes of this title and United 
States national security are furthered by such sus-
pension; and
223
(3) what measures the United States will take 
or is taking to ensure that the foreign person will 
not engage in similar activities in the future. 
(d) WAIVER AUTHORITY.—The President may waive 
the imposition of any sanction under subsection (b) if the 
President certifies to the appropriate congressional com-
mittees that the waiver—
(1) is important to the national security inter-
ests of the United States; and 
(2) would further the purposes of this title. 
SEC. 1312. PRESIDENTIAL NOTIFICATION ON ACTIVITIES 
OF FOREIGN PERSONS. 
(a) REPORTS TO CONGRESS.—Not later than 180 
days after the date of enactment of this Act, and not later 
than January 31 of each year thereafter, the President 
shall submit to the appropriate congressional committees 
a report detailing any activity by any foreign person de-
scribed in section 1311. This report shall also include a 
description of any sanctions that have been imposed and 
their duration. 
(b) PUBLICATION.—When the President imposes 
sanctions under section 1311, the President shall, to the 
maximum extent possible in unclassified form, publish in 
the Federal Register, not later than 15 days after report-
ing such sanctions to the appropriate congressional com-
224
mittees under subsection (a), the identity of each sanc-
tioned foreign person, the period for which sanctions will 
be in effect, and the reasons for the sanctions. 
Subtitle 
B—Further 
Actions 
Against Corporations Associated 
With Sanctioned Foreign Per-
sons 
SEC. 1321. FINDINGS. 
The Congress finds the following: 
(1) Foreign persons and corporations engaging 
in nuclear black-market activities are motivated by 
reasons of commercial gain and profit. 
(2) Sanctions targeted solely against the busi-
ness interests of the sanctioned person or business 
concern may be unsuccessful in halting these pro-
liferation activities, as the sanctions may be seen 
merely as the cost of doing business, especially if the 
business interests of the parent or subsidiary cor-
porate entities are unaffected by the sanctions. 
(3) Such narrow targeting of sanctions creates 
the incentive to create shell and ‘‘carve-out’’ cor-
porate entities to perform the proliferation activities 
and attract sanctions, leaving all other aspects of the 
larger corporation unaffected.