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on the on the date on which the sanction under this 
paragraph is imposed, shall be terminated as of such 
date. 
(4) Licenses or any other approval may not be 
issued to the foreign person for the export 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 agricul-
tural commodities, medicines and medical equipment. 
Any such license or approval that is in effect on the 
on the date on which the sanction under this para-
graph is imposed, shall be terminated as of such date. 
(c) PERIOD SANCTIONS IN EFFECT.—The sanctions re-
ferred to in subsection (b) should be imposed for not less 
than two years, but may be imposed for longer periods. The 
President may suspend after one year any sanction imposed 
pursuant to this section 15 days after submitting to the ap-
propriate congressional committees a report explaining—
(1) the reasons for modifying or terminating the 
sanction; 
(2) how the purposes of this Act and United 
States national security are furthered by such modi-
fication or termination; and
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(3) what measures the United States will take or 
is taking to ensure that the foreign person will not en-
gage in similar activities in the future. 
SEC. 812. PRESIDENTIAL NOTIFICATION ON ACTIVITIES OF 
FOREIGN PERSONS. 
(a) REPORTS TO CONGRESS.—Not later than 180 days 
after enactment of this Act and no 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 described in section 811. 
This report shall also include a description of any sanctions 
that have been imposed and their duration. 
(b) PUBLICATION.—When the President imposes sanc-
tions under section 811, the President shall, to the max-
imum extent unclassified, publish in the Federal Register, 
not later than 15 days after reporting such sanctions to the 
appropriate congressional committees under subsection (a), 
the identity of each sanctioned foreign person, the period 
for which sanctions will be in effect, and the reasons for 
the sanctions.
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Subtitle 
B—Further 
Actions 
Against Corporations Associated 
With Sanctioned Foreign Per-
sons 
SEC. 821. 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 business 
interests of the sanctioned person or business concern 
may be unsuccessful in halting these proliferation ac-
tivities, as the sanctions may be seen merely as the 
cost of doing business, especially if the business inter-
ests of the parent or subsidiary corporate entities are 
unaffected by the sanctions. 
(3) Such narrow targeting of sanctions creates 
the incentive to create shell and ‘‘carve-out’’ corporate 
entities to perform the proliferation activities and at-
tract sanctions, leaving all other aspects of the larger 
corporation unaffected. 
(4) To dissuade corporations from allowing their 
associated commercial entities or persons from engag-
ing in proliferation black-market activities, they must 
also be made to suffer financial loss and commercial
181
disadvantage, and parent and subsidiary commercial 
enterprises must be held responsible for the prolifera-
tion activities of their associated entities. 
(5) If a corporation perceives that the United 
States Government will do everything possible to 
make its commercial activity difficult around the 
world, then that corporation has a powerful commer-
cial incentive to prevent any further proliferation ac-
tivity by its associated entities. 
(6) Therefore, the United States Government 
should seek to increase the risk of commercial loss for 
associated corporate entities for the proliferation ac-
tions of their subsidiaries. 
SEC. 822. CAMPAIGN BY UNITED STATES GOVERNMENT OF-
FICIALS. 
The President shall instruct all agencies of the United 
States Government to make every effort in their interactions 
with foreign government and business officials to persuade 
foreign governments and relevant corporations not to en-
gage in any business transaction with a foreign person 
sanctioned under section 811, including any parent or sub-
sidiary of the sanctioned foreign person, for the duration 
of the sanctions.
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SEC. 823. COORDINATION. 
The Secretary of State shall coordinate the actions of 
the United States Government under section 822. 
SEC. 824. REPORT. 
Not later than one year after the date of the enactment 
of this Act and annually thereafter, the Secretary of State 
shall report to the appropriate congressional committees on 
the actions taken by the United States to carry out section 
822. 
Subtitle C—Incentives for Prolifera-
tion Interdiction Cooperation 
SEC. 831. AUTHORITY TO PROVIDE ASSISTANCE TO COOP-
ERATIVE COUNTRIES. 
The President is authorized to provide, on such terms 
as the President considers appropriate, assistance under 
section 832 to any country that cooperates with the United 
States and with other countries allied with the United 
States to prevent the transport and transshipment of items 
of proliferation concern in its national territory or airspace 
or in vessels under its control or registry. 
SEC. 832. TYPES OF ASSISTANCE. 
The assistance authorized under section 831 is the fol-
lowing: 
(1) Assistance under section 23 of the Arms Ex-
port Control Act.
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(2) Assistance under chapters 4 and 5 of part II 
of the Foreign Assistance Act of 1961. 
(3) Drawdown of defense equipment and services 
under section 516 of the Foreign Assistance Act of 
1961. 
SEC. 833. CONGRESSIONAL NOTIFICATION. 
Assistance authorized under this subtitle may not be 
provided until at least 30 days after the date on which the 
President has provided notice thereof to the appropriate 
congressional committees, in accordance with the procedures 
applicable to reprogramming notifications under section 
634A(a) of the Foreign Assistance Act of 1961. 
SEC. 834. LIMITATION. 
Assistance may be provided to a country under section 
831 in no more than three fiscal years. 
SEC. 835. USE OF ASSISTANCE. 
To the extent practicable, assistance provided under 
this subtitle shall be used to enhance the capability of the 
recipient country to prevent the transport and trans-
shipment of items of proliferation concern in its national 
territory or airspace, or in vessels under its control or reg-
istry, including through the development of a legal frame-
work in that country to enhance such capability by crim-
inalizing proliferation, enacting strict export controls, and 
securing sensitive materials within its borders.