I
104TH CONGRESS
2D SESSION
H. R. 3023
To require the imposition of certain trade sanctions on countries which
threaten the national security of the United States and the health and
safety of United States citizens by failing to take effective action against
the production of and trafficking in illicit narcotic, and psychotropic
substances, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 6, 1996
Mr. SHAW (for himself, Mr. GILMAN, Mr. HAMILTON, and Mr. SOUDER) intro-
duced the following bill; which was referred to the Committee on Ways
and Means, and in addition to the Committees on Transportation and In-
frastructure, and Rules, for a period to be subsequently determined by
the Speaker, in each case for consideration of such provisions as fall with-
in the jurisdiction of the committee concerned
A BILL
To require the imposition of certain trade sanctions on coun-
tries which threaten the national security of the United
States and the health and safety of United States citi-
zens by failing to take effective action against the pro-
duction of and trafficking in illicit narcotic, and psycho-
tropic substances, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Narcotics Control
Trade Act of 1996’’.
SEC. 2. AMENDMENT TO TRADE ACT OF 1974.
(a) IN GENERAL.—Section 802 of the Trade Act of
1974 is amended to read as follows:
‘‘SEC. 
802. 
TARIFF 
TREATMENT 
OF 
PRODUCTS 
OF
NONCOOPERATIVE 
MAJOR 
ILLICIT 
DRUG
PRODUCING OR DRUG TRANSIT COUNTRIES.
‘‘(a) ANNUAL REPORTS ON TRADE.—
‘‘(1) IN GENERAL.—At the time that the report
required by section 489(a) of the Foreign Assistance
Act of 1961 is submitted each year, the United
States Trade Representative, in consultation with
the Secretary of State, shall report to the appro-
priate congressional committees on the bilateral
trade relationship between the United States and
each major illicit drug producing country and each
major drug transit country as determined under sec-
tion 490(h) of that Act, including the volume of im-
ports entering the United States from that country
under any preferential trade program such as that
under title V of this Act (relating to the Generalized
System of Preferences), the Caribbean Basin Eco-
nomic Recovery Act, or the Andean Trade Pref-
erence Act. The report may be submitted in classi-
fied form, as appropriate.
‘‘(2) REVIEW
OF
IMPACT
OF
IMPOSITION
OF
TRADE SANCTIONS ON MAJOR ILLICIT DRUG PRO-
DUCING AND MAJOR DRUG TRANSIT COUNTRIES.—
The report required by paragraph (1) shall include
an assessment, for each of the countries referred to
in paragraph (1)—
‘‘(A) by the United States Trade Rep-
resentative of the anticipated impact of taking
any of the actions described in subsection (b)
on the economy of the United States, and the
economy of such country; and
‘‘(B) by the Secretary of State of the an-
ticipated impact of taking any of the actions de-
scribed in subsection (b) on the country’s co-
operation with the United States, or taking
steps on its own, to achieve full compliance with
the goals and objectives of the United Nations
Convention Against Illicit Traffic in Narcotic
Drugs and Psychotropic Substances.
‘‘(3) RECOMMENDATION
ON
TRADE
SANC-
TIONS.—At the time that the report is submitted
under paragraph (1), the Trade Representative, in
consultation with the Secretary of State, shall rec-
ommend to the President, on the basis of available
information, which trade sanctions should be im-
posed by the President under subsection (b)(2), and
the products to which the sanctions should be ap-
plied.
‘‘(4) INFORMATION
TO
BE
INCLUDED.—Each
report under this subsection shall take into account
information from sources available to the United
States Trade Representative and the Secretary of
State, and such information as may be submitted to
the Trade Representative or the Secretary by inter-
ested persons.
‘‘(b) REQUIRED ACTIONS BY PRESIDENT.—
‘‘(1) IN GENERAL.—Subject to subsection (c),
for each major illicit drug producing or major drug
transit country, the President shall, at the time of
submission of the report required by section 489(a)
of the Foreign Assistance Act of 1961, or at any
time after the submission of such report, to the ex-
tent considered necessary to achieve the purpose of
this title—
‘‘(A) deny to any or all of the products of
that country nondiscriminatory treatment (most
favored nation treatment) or tariff treatment
under title V (relating to the Generalized Sys-
‘‘(G) decline to negotiate with that country
for purposes of establishing a free trade area;
or
‘‘(H) take any combination of the actions
described in subparagraphs (A) through (G).
‘‘(2) REQUIREMENT FOR IMPOSITION OF SANC-
TIONS.—The President shall take at least one of the
actions described in paragraph (1) for any major il-
licit drug producing or major drug transit country
that has been denied certification under subsection
(c)(1)(A) for 2 or more consecutive years.
‘‘(c) CERTIFICATION PROCEDURES.—
‘‘(1) WHAT MUST BE CERTIFIED.—Subject to
paragraph (4), subsection (b) shall not apply with
respect to a country if the President determines and
certifies to the Congress at the time of the submis-
sion of the report required by section 489(a) of the
Foreign Assistance Act of 1961, that—
‘‘(A) during the previous year the country
has cooperated fully with the United States, or
has taken adequate steps on its own, to achieve
full compliance with the goals and objectives es-
tablished by the United Nations Convention
Against Illicit Traffic in Narcotic Drugs and
Psychotropic Substances; or
‘‘(B) for a country that would not other-
wise qualify for certification under subpara-
graph (A), the vital national interests of the
United States require that subsection (b) not
be applied with respect to that country.
‘‘(2) CONSIDERATIONS
REGARDING
COOPERA-
TION.—In making the determination described in
paragraph (1)(A), the President shall consider the
extent to which the country has—
‘‘(A) met the goals and objectives of the
United Nations Convention Against Illicit Traf-
fic in Narcotic Drugs and Psychotropic Sub-
stances, including action on such issues as illicit
cultivation, production, distribution, sale, trans-
port and financing, and money laundering,
asset seizure, extradition, mutual legal assist-
ance, law enforcement and transit cooperation,
precursor chemical control, and demand reduc-
tion;
‘‘(B) accomplished the goals described in
an applicable bilateral narcotics agreement with
the United States or a multilateral agreement;
and
‘‘(C) taken legal and law enforcement
measures to prevent and punish public corrup-
tion, especially by senior government officials,
that facilitates the production, processing, or
shipment of narcotic and psychotropic sub-
stances, or that discourages the investigation or
prosecution of such acts.
‘‘(3) INFORMATION TO BE INCLUDED IN NA-
TIONAL INTEREST CERTIFICATION.—If the President
makes a certification with respect to a country pur-
suant to paragraph (1)(B), the President shall in-
clude in such certification—
‘‘(A) a full and complete description of the
vital national interests placed at risk if action
is taken pursuant to subsection (b) with respect
to that country; and
‘‘(B) a statement weighing the risk de-
scribed in subparagraph (A) against the risks
posed to the vital national interest of the Unit-
ed States by the failure of such country to co-
operate fully with the United States in combat-
ing narcotics or to take adequate steps to com-
bat narcotics on its own.
‘‘(4) CONGRESSIONAL REVIEW.—Subsection (b)
shall apply to a country without regard to paragraph
(1) if, within 30 calendar days after the receipt of
a certification submitted under this subsection, the
Congress enacts a joint resolution disapproving the
determination of the President contained in such
certification.
‘‘(d) LICIT OPIUM PRODUCING COUNTRIES.—The
President may make a certification under subsection
(c)(1)(A) with respect to a major illicit drug producing
country, or major drug transit country, that is a producer
of licit opium only if the President determines that such
country has taken adequate steps to prevent significant
diversion of its licit cultivation and production into the il-
licit market, maintains production and stockpiles at levels
no higher than those consistent with licit market demand,
and prevents illicit cultivation and production.
‘‘(e) DURATION OF ACTION.—Any action taken by
the President under subparagraph (A), (B), (C), or (F)
of subsection (b)(1) shall apply to the products of a for-
eign country that are entered, or withdrawn from ware-
house for consumption, during the period that such action
is in effect.
‘‘(f) RECERTIFICATION.—Any action taken by the
President under subsection (b) against a country shall re-
main in effect until—
‘‘(1) the President, at the time of submission of
the report required by section 489(a) of the Foreign
Assistance Act of 1961—
‘‘(A) makes a certification under sub-
section (c)(1)(A) with respect to that country,
if the action was taken under subsection (b)(2),
or
‘‘(B) makes a certification under sub-
section (c)(1) with respect to that country, in
any other case,
and the Congress does not enact a joint resolution
under subsection (c)(4) disapproving the determina-
tion of the President contained in that certification;
or
‘‘(2) the President, at any other time, makes
the certification described in subsection (c)(1)(B)
with respect to that country, except that this para-
graph applies only if either—
‘‘(A) the President also certifies that—
‘‘(i) that country has undergone a
fundamental change in the government, or
‘‘(ii) there has been a fundamental
change in the conditions that were the rea-
son—
‘‘(I) why the President had not
made a certification with respect to
that 
country 
under 
subsection
(c)(1)(A), or
‘‘(II) if he had made such a cer-
tification and the Congress enacted a
joint resolution disapproving the de-
termination contained in the certifi-
cation, why the Congress enacted that
joint resolution; or
‘‘(B) the Congress does not enact a joint
resolution disapproving the determination con-
tained in the certification under subsection
(c)(1)(B).
Any certification under subparagraph (A) of para-
graph (2) shall discuss the justification for the cer-
tification.
‘‘(g) PRESIDENTIAL
ACTION
REGARDING
AVIA-
TION.—
‘‘(1) SUSPENSION OF AIR SERVICE.—(A) The
President is authorized to notify the government of
a country against which is imposed the sanction de-
scribed in subsection (b)(1)(D) of the President’s in-
tention to suspend the authority of foreign air car-
riers owned or controlled by the government or na-
tionals of that country to engage in foreign air
transportation to or from the United States.
‘‘(B) Within 10 days after the date of notifica-
tion of a government under subparagraph (A), the