SEC. 4. DESIGNATION OF AND ACTIONS WITH RESPECT TO 
FOREIGN COUNTRIES ENGAGED IN ILLICIT 
TRADE IN TOBACCO PRODUCTS OR THEIR 
PRECURSORS. 
(a) DESIGNATION.—Not later than one year after the 
date of the enactment of this Act, and annually thereafter, 
the Secretary of State, in consultation with the Secretary 
of Defense, the Attorney General, and the Secretary of 
the Treasury, shall— 
(1) review the status of illicit trade in tobacco 
products or their precursors in each foreign country 
to determine whether— 
(A) the country is a major source, point of 
transit, or consumer of illicit tobacco products 
or their precursors; or 
(B)(i) the country meets the criteria of 
subparagraph (A); and 
(ii) the government of the country has ac-
tively engaged in or knowingly profited from the 
illicit trade in tobacco products or their precur-
sors; 
(2) designate each foreign country that— 
(A) meets the criteria of subparagraph (A) 
of paragraph (1) as a focus country for illicit 
trade in tobacco products or their precursors 
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for purposes of providing assistance to the 
country under subsection (b); and 
(B) meets the criteria of subparagraph (B) 
of paragraph (1) as a country of concern for il-
licit trade in tobacco products or their precur-
sors for purposes of withholding United States 
development assistance and security assistance 
to the country under subsection (c); and 
(3) submit to the appropriate congressional 
committees a report that includes— 
(A) a list that identifies each foreign coun-
try designated as a focus country for illicit 
trade in tobacco products or their precursors 
under paragraph (2)(A); and 
(B) a list that identifies each foreign coun-
try designated as a country of concern for illicit 
trade in tobacco products or their precursors 
under paragraph (2)(B). 
(b) ASSISTANCE TO FOCUS COUNTRIES.— 
(1) LAW ENFORCEMENT PROFESSIONAL TRAIN-
ING.—The Secretary of State, in coordination with 
the heads of other relevant United States depart-
ments and agencies and nongovernmental organiza-
tions where appropriate, is authorized to provide as-
sistance to foreign countries designated as focus 
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countries for illicit trade in tobacco products or their 
precursors under subsection (a)(2)(A) to improve the 
effectiveness of law enforcement to combat the illicit 
trade in tobacco products or their precursors. 
(2) INVESTIGATIVE CAPACITY BUILDING.—The 
Secretary of State, in coordination with the heads of 
other relevant United States departments and agen-
cies, is authorized to establish and carry out pro-
grams to increase the capacity of law enforcement 
and customs and border security offices in foreign 
countries designated as focus countries for illicit 
trade in tobacco products or their precursors under 
subsection (a)(2)(A). 
(c) PROHIBITION ON ASSISTANCE TO COUNTRIES OF 
CONCERN.— 
(1) IN GENERAL.—The Secretary of State may 
not provide development assistance or security as-
sistance to foreign countries designated as countries 
of concern for illicit trade in tobacco products or 
their precursors under subsection (a)(2)(B). 
(2) WAIVER.—The Secretary of State may 
waive the application of paragraph (1) with respect 
to a foreign country described in paragraph (1) if 
the Secretary determines and certifies to the appro-
priate congressional committees that such waiver is 
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in the national security interests of the United 
States. 
(3) DEFINITIONS.—In this subsection: 
(A) 
DEVELOPMENT
ASSISTANCE.—The 
term ‘‘development assistance’’ means assist-
ance authorized under— 
(i) chapter 1 or 10 of part I of the 
Foreign Assistance Act of 1961 (22 U.S.C. 
2151 et seq. or 2293 et seq.); or 
(ii) chapter 4 of part II of such Act 
(22 U.S.C. 2346 et seq.). 
(B) SECURITY
ASSISTANCE.—The term 
‘‘security assistance’’ means assistance author-
ized under part II of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2301 et seq.). 
SEC. 5. IMPOSITION OF SANCTIONS WITH RESPECT TO FOR-
EIGN PERSONS RESPONSIBLE FOR ILLICIT 
TRADE IN TOBACCO PRODUCTS OR THEIR 
PRECURSORS. 
(a) IN GENERAL.—The President is authorized to 
impose the sanctions described in subsection (b) with re-
spect to any foreign person the President determines, 
based on credible evidence— 
(1) is responsible for illicit trade in tobacco 
products or their precursors; 
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(2) acted as an agent of or on behalf of a for-
eign person in a matter relating to an activity de-
scribed in paragraph (1); 
(3) is a government official, or a senior asso-
ciate of such an official, that is responsible for, or 
complicit in, ordering, controlling, or otherwise di-
recting, the illicit trade in tobacco products or their 
precursors, including acts of significant corruption, 
bribery, or the facilitation or transfer of the pro-
ceeds of corruption to foreign jurisdictions; or 
(4) has materially assisted, sponsored, or pro-
vided financial, material, or technological support 
for, or goods or services in support of, an activity 
described in paragraph (1), (2), or (3). 
(b) SANCTIONS
DESCRIBED.—The sanctions de-
scribed in this subsection are the following: 
(1) INADMISSIBILITY TO UNITED STATES.—In 
the case of a foreign person who is an individual— 
(A) ineligibility to receive a visa to enter 
the United States or to be admitted to the 
United States; or 
(B) if the individual has been issued a visa 
or other documentation, revocation, in accord-
ance with section 221(i) of the Immigration and 
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Nationality Act (8 U.S.C. 1201(i)), of the visa 
or other documentation. 
(2) BLOCKING OF PROPERTY.— 
(A) IN
GENERAL.—The blocking, in ac-
cordance with the International Emergency 
Economic Powers Act (50 U.S.C. 1701 et seq.), 
of all transactions in all property and interests 
in property of a foreign person if such property 
and interests in property are in the United 
States, come within the United States, or are or 
come within the possession or control of a 
United States person. 
(B) INAPPLICABILITY OF NATIONAL EMER-
GENCY
REQUIREMENT.—The requirements of 
section 202 of the International Emergency 
Economic Powers Act (50 U.S.C. 1701) shall 
not apply for purposes of this section. 
(C) EXCEPTION
RELATING
TO
IMPORTA-
TION OF GOODS.— 
(i) IN
GENERAL.—The authority to 
block and prohibit all transactions in all 
property and interests in property under 
subparagraph (A) shall not include the au-
thority to impose sanctions on the importa-
tion of goods. 
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(ii) GOOD DEFINED.—In this subpara-
graph, the term ‘‘good’’ means any article, 
natural or man-made substance, supply or 
manufactured product, including inspection 
and test equipment, and excluding tech-
nical data. 
(c) CONSIDERATION OF CERTAIN INFORMATION IN 
IMPOSING SANCTIONS.—In determining whether to im-
pose sanctions under subsection (a), the President shall 
consider— 
(1) information provided by the chairperson and 
ranking member of each of the appropriate congres-
sional committees; and 
(2) credible information obtained by other coun-
tries and nongovernmental organizations that mon-
itor violations of human rights. 
(d) REQUESTS
BY CHAIRPERSON
AND RANKING 
MEMBER
OF APPROPRIATE CONGRESSIONAL COMMIT-
TEES.—Not later than 120 days after receiving a written 
request from the chairperson and ranking member of one 
of the appropriate congressional committees with respect 
to whether a foreign person has engaged in an activity 
described in subsection (a), the President shall— 
(1) determine if that person has engaged in 
such an activity; and 
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(2) submit to the chairperson and ranking 
member of that committee with respect to that de-
termination a report that includes— 
(A) a statement of whether or not the 
President imposed or intends to impose sanc-
tions with respect to the person; and 
(B) if the President imposed or intends to 
impose sanctions, a description of those sanc-
tions. 
(e) EXCEPTION TO COMPLY WITH UNITED NATIONS 
HEADQUARTERS AGREEMENT AND LAW ENFORCEMENT 
OBJECTIVES.—Sanctions under subsection (b)(1) shall 
not apply to an individual if admitting the individual into 
the United States would further important law enforce-
ment objectives or is necessary to permit the United 
States to comply with the Agreement regarding the Head-
quarters of the United Nations, signed at Lake Success 
June 26, 1947, and entered into force November 21, 
1947, between the United Nations and the United States, 
or other applicable international obligations of the United 
States. 
(f) ENFORCEMENT OF BLOCKING OF PROPERTY.— 
A person that violates, attempts to violate, conspires to 
violate, or causes a violation of subsection (b)(2) or any 
regulation, license, or order issued to carry out subsection 
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(b)(2) shall be subject to the penalties set forth in sub-
sections (b) and (c) of section 206 of the International 
Emergency Economic Powers Act (50 U.S.C. 1705) to the 
same extent as a person that commits an unlawful act de-
scribed in subsection (a) of that section. 
(g) TERMINATION OF SANCTIONS.—The President 
may terminate the application of sanctions under this sec-
tion with respect to a foreign person if the President deter-
mines and reports to the appropriate congressional com-
mittees not later than 15 days before the termination of 
the sanctions that— 
(1) credible information exists that the person 
did not engage in the activity for which sanctions 
were imposed; 
(2) the person has been prosecuted appro-
priately for the activity for which sanctions were im-
posed; 
(3) the person has credibly demonstrated a sig-
nificant change in behavior, has paid an appropriate 
consequence for the activity for which sanctions were 
imposed, and has credibly committed to not engage 
in an activity described in subsection (a) in the fu-
ture; or 
(4) the termination of the sanctions is in the 
vital national security interests of the United States. 
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(h) REGULATORY AUTHORITY.—The President shall 
issue such regulations, licenses, and orders as are nec-
essary to carry out this section. 
(i) IDENTIFICATION
OF SANCTIONABLE FOREIGN 
PERSONS.—The Assistant Secretary of State for Inter-
national Narcotics and Law Enforcement Affairs, in con-
sultation with the Assistant Secretary of State for Con-
sular Affairs and other bureaus of the Department of 
State, as appropriate, is authorized to submit to the Sec-
retary of State, for review and consideration, the names 
of foreign persons who may meet the criteria described 
in subsection (a). 
SEC. 6. REPORTS TO CONGRESS. 
(a) IN GENERAL.—Not later than 120 days after the 
date of the enactment of this Act and annually thereafter, 
the President shall submit to the appropriate congres-
sional committees a report that includes— 
(1) a list of each foreign person with respect to 
which the President imposed sanctions pursuant to 
section 5 during the year preceding the submission 
of the report; 
(2) a description of the type of sanctions im-
posed with respect to each such foreign person; 
(3) the number of foreign persons with respect 
to which the President— 
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(A) imposed sanctions under section 5 dur-
ing that year; and 
(B) terminated sanctions under section 5 
during that year; 
(4) the dates on which such sanctions were im-
posed or terminated, as the case may be; 
(5) the reasons for imposing or terminating 
such sanctions; and 
(6) a description of the efforts of the President 
to encourage the governments of other countries to 
impose sanctions that are similar to the sanctions 
authorized by section 5. 
(b) FORM OF REPORT.— 
(1) IN
GENERAL.—Each report required by 
subsection (a) shall be submitted in unclassified 
form, but may include a classified annex. 
(2) EXCEPTION.—The name of a foreign person 
to be included in the list required by subsection 
(a)(1) may be submitted in the classified annex au-
thorized by paragraph (1) only if the President— 
(A) determines that it is vital for the na-
tional security interests of the United States to 
do so; 
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