502 
items valued at less than $50,000,000 that are controlled 
under this Act pursuant to United States obligations 
under the MTCR and are goods or services that are in-
tended to support the design, utilization, development, or 
production of a space launch vehicle system listed in Cat-
egory I of the MTCR Annex, the Secretary shall transmit 
to the Congress a report describing the licensed export and 
rationale for approving such export, including the consist-
ency of such export with United States missile non-
proliferation policy. The requirement contained in the pre-
ceding sentence shall not apply to licenses for exports to 
countries that were members of the MTCR as of April 
17, 1987. 
SEC. 5122. DENIAL OF THE TRANSFER OF MISSILE EQUIP-
MENT OR TECHNOLOGY BY UNITED STATES 
PERSONS. 
(a) SANCTIONS.— 
(1) IN GENERAL.—If the President determines 
that a United States person knowingly— 
(A) exports, transfers, or otherwise en-
gages in the trade of any item on the MTCR 
Annex, in violation of the provisions of section 
4311 of this Act, section 5 or 6 of the Export 
Administration Act of 1979 (as continued in ef-
fect under the International Emergency Eco-
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503 
nomic Powers Act), or any regulations or orders 
issued under any such provisions of law, 
(B) conspires to or attempts to engage in 
such export, transfer, or trade, or 
(C) facilitates such export, transfer, or 
trade by any other person, 
then the President shall impose the applicable sanc-
tions described in paragraph (2). 
(2) APPLICABLE
SANCTIONS.—The sanctions 
which apply to a United States person under para-
graph (1) are the following: 
(A) If the item on the MTCR Annex in-
volved in the export, transfer, or trade is missile 
equipment or technology within category II of 
the MTCR Annex, then the President shall 
deny to such United States person for a period 
of 2 years— 
(i) United States Government con-
tracts relating to missile equipment or 
technology; and 
(ii) licenses for the transfer of missile 
equipment or technology controlled under 
this Act. 
(B) If the item on the MTCR Annex in-
volved in the export, transfer, or trade is missile 
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504 
equipment or technology within category I of 
the MTCR Annex, then the President shall 
deny to such United States person for a period 
of not less than 2 years— 
(i) all United States Government con-
tracts, and 
(ii) all export licenses and agreements 
for items on the United States Munitions 
List. 
(b) DISCRETIONARY SANCTIONS.—In the case of any 
determination made pursuant to subsection (a), the Presi-
dent may pursue any penalty provided in section 4372. 
(c) PRESUMPTION.—In determining whether to apply 
sanctions under subsection (a) to a United States person 
involved in the export, transfer, or trade of an item on 
the MTCR Annex, it should be a rebuttable presumption 
that such item is designed for use in a missile listed in 
the MTCR Annex if the President determines that the 
final destination of the item is a country the government 
of which the Secretary has determined, for purposes of 
6(j)(1)(A) of the Export Administration Act of 1979 (as 
continued in effect under the International Emergency 
Economic Powers Act), has repeatedly provided support 
for acts of international terrorism (as such term is defined 
in section 10401(h)). 
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505 
(d) WAIVER.—The President may waive the imposi-
tion of sanctions under subsection (a) with respect to a 
product or service if the President certifies to Congress 
that— 
(1) the product or service is essential to the na-
tional security of the United States; and 
(2) such person is a sole source supplier of the 
product or service, the product or service is not 
available from any alternative reliable supplier, and 
the need for the product or service cannot be met in 
a timely manner by improved manufacturing proc-
esses or technological developments. 
SEC. 5123. TRANSFERS OF MISSILE EQUIPMENT OR TECH-
NOLOGY BY FOREIGN PERSONS. 
(a) SANCTIONS.— 
(1) IN GENERAL.—Subject to subsections (c) 
through (g), if the President determines that a for-
eign person, after the date of the enactment of this 
Act, knowingly— 
(A) exports, transfers, or otherwise en-
gages in the trade of any MTCR equipment or 
technology that contributes to the acquisition, 
design, development, or production of missiles 
in a country that is not an MTCR adherent and 
would be, if it were United States-origin equip-
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506 
ment or technology, subject to the jurisdiction 
of the United States under this Act, 
(B) conspires to or attempts to engage in 
such export, transfer, or trade, or 
(C) facilitates such export, transfer, or 
trade by any other person, 
or if the President has made a determination with 
respect to a foreign person under section 11B(b)(1) 
of the Export Administration Act of 1979 (as con-
tinued in effect under the International Emergency 
Economic Powers Act), then the President shall im-
pose on that foreign person the applicable sanctions 
described in paragraph (2). 
(2) APPLICABLE
SANCTIONS.—The sanctions 
which apply to a foreign person under paragraph (1) 
are the following: 
(A) If the item involved in the export, 
transfer, or trade is within category II of the 
MTCR Annex, then the President shall deny, 
for a period of 2 years— 
(i) United States Government con-
tracts relating to missile equipment or 
technology; and 
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507 
(ii) licenses for the transfer to such 
foreign person of missile equipment or 
technology controlled under this Act. 
(B) If the item involved in the export, 
transfer, or trade is within category I of the 
MTCR Annex, then the President shall deny, 
for a period of not less than 2 years— 
(i) all United States Government con-
tracts with such foreign person; and 
(ii) licenses for the transfer to such 
foreign person of all items on the United 
States Munitions List. 
(C) If, in addition to actions taken under 
subparagraphs (A) and (B), the President de-
termines that the export, transfer, or trade has 
substantially contributed to the design, develop-
ment, or production of missiles in a country 
that is not an MTCR adherent, then the Presi-
dent shall prohibit, for a period of not less than 
2 years, the importation into the United States 
of products produced by that foreign person. 
(b) INAPPLICABILITY WITH RESPECT TO MTCR AD-
HERENTS.—Subsection (a) does not apply with respect 
to— 
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510 
paragraph (1), the President shall so notify the 
Committee on Armed Services and the Committee on 
Foreign Relations of the Senate and the Committee 
on Armed Services and the Committee on Foreign 
Affairs of the House of Representatives not less 
than 45 working days before issuing the waiver. 
Such notification shall include a report fully articu-
lating the rationale and circumstances which led the 
President to apply the waiver. 
(f) PRESUMPTION.—In determining whether to apply 
sanctions under subsection (a) to a foreign person involved 
in the export, transfer, or trade of an item on the MTCR 
Annex, it should be a rebuttable presumption that such 
item is designed for use in a missile listed in the MTCR 
Annex if the President determines that the final destina-
tion of the item is a country the government of which the 
Secretary has determined, for purposes of 6(j)(1)(A) of 
the Export Administration Act of 1979 (as continued in 
effect under the International Emergency Economic Pow-
ers Act), has repeatedly provided support for acts of inter-
national terrorism (as such term is defined in section 
10401(h)). 
(g) ADDITIONAL WAIVER.—The President may waive 
the imposition of sanctions under subsection (a) on a per-
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511 
son with respect to a product or service if the President 
certifies to the Congress that— 
(1) the product or service is essential to the na-
tional security of the United States; and 
(2) such person is a sole source supplier of the 
product or service, the product or service is not 
available from any alternative reliable supplier, and 
the need for the product or service cannot be met in 
a timely manner by improved manufacturing proc-
esses or technological developments. 
(h) EXCEPTIONS.—The President shall not apply the 
sanction under this section prohibiting the importation of 
the products of a foreign person— 
(1) in the case of procurement of defense arti-
cles or defense services— 
(A) under existing contracts or sub-
contracts, including the exercise of options for 
production quantities to satisfy requirements 
essential to the national security of the United 
States; 
(B) if the President determines that the 
person to which the sanctions would be applied 
is a sole source supplier of the defense articles 
and defense services, that the defense articles 
or defense services are essential to the national 
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512 
security of the United States, and that alter-
native sources are not readily or reasonably 
available; or 
(C) if the President determines that such 
articles or services are essential to the national 
security of the United States under defense co-
production agreements or NATO Programs of 
Cooperation; 
(2) to products or services provided under con-
tracts entered into before the date on which the 
President publishes his intention to impose the sanc-
tions; or 
(3) to— 
(A) spare parts, 
(B) component parts, but not finished 
products, essential to United States products or 
production, 
(C) routine services and maintenance of 
products, to the extent that alternative sources 
are not readily or reasonably available; or 
(D) information and technology essential 
to United States products or production. 
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513 
SEC. 5124. NOTIFICATION OF ADMITTANCE OF MTCR AD-
HERENTS. 
(a) POLICY REPORT.—Following any action by the 
United States that results in a country becoming a MTCR 
adherent, the President shall transmit promptly to the 
Congress a report which describes the rationale for such 
action, together with an assessment of that country’s non-
proliferation policies, practices, and commitments. Such 
report shall also include the text of any agreements or un-
derstandings between the United States and such country 
regarding the terms and conditions of the country’s adher-
ence to the MTCR. 
(b) INTELLIGENCE ASSESSMENT REPORT.—At such 
times that a report is transmitted pursuant to subsection 
(a), the Director of National Intelligence shall promptly 
prepare and submit to Congress a separate report con-
taining any credible information indicating that the coun-
try described in subsection (a) has engaged in any activity 
identified under subparagraph (A), (B), or (C) of section 
5123(a)(1) within the previous two years. 
SEC. 5125. AUTHORITY RELATING TO MTCR ADHERENTS. 
Notwithstanding section 5123(b), the President may 
take the actions under section 5123(a)(2) under the cir-
cumstances described in section 5126(b)(2). 
SEC. 5126. DEFINITIONS. 
(a) IN GENERAL.—In this chapter— 
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514 
(1) the term ‘‘missile’’ means a category I sys-
tem as defined in the MTCR Annex, and any other 
unmanned delivery system of similar capability, as 
well as the specially designed production facilities for 
these systems; 
(2) the term ‘‘Missile Technology Control Re-
gime’’ or ‘‘MTCR’’ means the policy statement, be-
tween the United States, the United Kingdom, the 
Federal Republic of Germany, France, Italy, Can-
ada, and Japan, announced on April 16, 1987, to re-
strict sensitive missile-relevant transfers based on 
the MTCR Annex, and any amendments thereto; 
(3) the term ‘‘MTCR adherent’’ means a coun-
try that participates in the MTCR or that, pursuant 
to an international understanding to which the 
United States is a party, controls MTCR equipment 
or technology in accordance with the criteria and 
standards set forth in the MTCR; 
(4) the term ‘‘MTCR Annex’’ means the Guide-
lines and Equipment and Technology Annex of the 
MTCR, and any amendments thereto; 
(5) the terms ‘‘missile equipment or tech-
nology’’ and ‘‘MTCR equipment or technology’’ 
mean those items listed in category I or category II 
of the MTCR Annex; 
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515 
(6) the term ‘‘United States person’’ has the 
meaning given that term in section 16(2) of the Ex-
port Administration Act of 1979 (as continued in ef-
fect under the International Emergency Economic 
Powers Act); 
(7) the term ‘‘foreign person’’ means any per-
son other than a United States person; 
(8) the term ‘‘person’’— 
(A) means a natural person as well as a 
corporation, business association, partnership, 
society, trust, any other nongovernmental enti-
ty, organization, or group, and any govern-
mental entity operating as a business enter-
prise, and any successor of any such entity; and 
(B) in the case of a country with a non- 
market economy (excluding former members of 
the Warsaw Pact), includes— 
(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 
electronics, space systems or equipment, 
and military aircraft; and 
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517 
MTCR adherent and would be, if it were United 
States-origin equipment or technology, subject to the 
jurisdiction of the United States under this Act. 
CHAPTER 3—CHEMICAL AND BIOLOGICAL 
NONPROLIFERATION 
SEC. 5131. SANCTIONS AGAINST CERTAIN FOREIGN PER-
SONS. 
(a) IMPOSITION OF SANCTIONS.— 
(1) DETERMINATION BY THE PRESIDENT.—Ex-
cept as provided in subsection (b)(2), the President 
shall impose both of the sanctions described in sub-
section (c) if the President determines that a foreign 
person, on or after the date of the enactment of this 
section, has knowingly and materially contributed— 
(A) through the export from the United 
States of any goods or technology that are sub-
ject to the jurisdiction of the United States, 
(B) through the export from any other 
country of any goods or technology that would 
be, if they were United States goods or tech-
nology, subject to the jurisdiction of the United 
States, or 
(C) through any other transaction not sub-
ject to sanctions pursuant to the Export Ad-
ministration Act of 1979 (as continued in effect 
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518 
under the International Emergency Economic 
Powers Act), 
to the efforts by any foreign country, project, or en-
tity described in paragraph (2) to use, develop, 
produce, stockpile, or otherwise acquire chemical or 
biological weapons. 
(2) COUNTRIES, PROJECTS, OR ENTITIES RE-
CEIVING ASSISTANCE.—Paragraph (1) applies in the 
case of— 
(A) any foreign country that the President 
determines has, at any time after January 1, 
1980— 
(i) used chemical or biological weap-
ons in violation of international law; 
(ii) used lethal chemical or biological 
weapons against its own nationals; or 
(iii) made substantial preparations to 
engage in the activities described in clause 
(i) or (ii); 
(B) any foreign country whose government 
is determined to be a government that has re-
peatedly provided support for acts of inter-
national terrorism for purposes of section 6(j) 
of the Export Administration Act of 1979 (as 
continued in effect under the International 
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519 
Emergency Economic Powers Act) or section 
10401 of this Act; or 
(C) any other foreign country, project, or 
entity designated by the President for purposes 
of this section. 
(3) PERSONS AGAINST WHOM SANCTIONS ARE 
TO BE IMPOSED.—Sanctions shall be imposed pursu-
ant to paragraph (1) on— 
(A) the foreign person with respect to 
which the President makes the determination 
described in that paragraph; 
(B) any successor entity to that foreign 
person; 
(C) any foreign person that is a parent or 
subsidiary of that foreign person if that parent 
or subsidiary knowingly assisted in the activities 
which were the basis of that determination; and 
(D) any foreign person that is an affiliate 
of that foreign person if that affiliate knowingly 
assisted in the activities which were the basis of 
that determination and if that affiliate is con-
trolled in fact by that foreign person. 
(b) CONSULTATIONS WITH AND ACTIONS BY FOR-
EIGN GOVERNMENT OF JURISDICTION.— 
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520 
(1) CONSULTATIONS.—If the President makes 
the determinations described in subsection (a)(1) 
with respect to a foreign person, the Congress urges 
the President to initiate consultations immediately 
with the government with primary jurisdiction over 
that foreign person with respect to the imposition of 
sanctions pursuant to this section. 
(2) ACTIONS
BY
GOVERNMENT
OF
JURISDIC-
TION.—In order to pursue such consultations with 
that government, the President may delay imposition 
of sanctions pursuant to this section for a period of 
up to 90 days. Following these consultations, the 
President shall impose sanctions unless the Presi-
dent determines and certifies to Congress that such 
government has taken specific and effective actions, 
including appropriate penalties, to terminate the in-
volvement of the foreign person in the activities de-
scribed in subsection (a)(1). The President may 
delay imposition of sanctions for an additional pe-
riod of up to 90 days if the President determines 
and certifies to Congress that such government is in 
the process of taking the actions described in the 
preceding sentence. 
(3) REPORT
TO
CONGRESS.—The President 
shall report to Congress, not later than 90 days 
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521 
after making a determination under subsection 
(a)(1), on the status of consultations with the appro-
priate government under this subsection, and the 
basis for any determination under paragraph (2) of 
this subsection that such government has taken spe-
cific corrective actions. 
(c) SANCTIONS.— 
(1) DESCRIPTION OF SANCTIONS.—The sanc-
tions to be imposed pursuant to subsection (a)(1) 
are, except as provided in paragraph (2) of this sub-
section, the following: 
(A) 
PROCUREMENT
SANCTION.—The 
United States Government shall not procure, or 
enter into any contract for the procurement of, 
any goods or services from any person described 
in subsection (a)(3). 
(B) IMPORT SANCTIONS.—The importation 
into the United States of products produced by 
any person described in subsection (a)(3) shall 
be prohibited. 
(2) EXCEPTIONS.—The President shall not be 
required to apply or maintain sanctions under this 
section— 
(A) in the case of procurement of defense 
articles or defense services— 
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522 
(i) under existing contracts or sub-
contracts, including the exercise of options 
for production quantities to satisfy United 
States operational military requirements; 
(ii) if the President determines that 
the person or other entity to which the 
sanctions would otherwise be applied is a 
sole source supplier of the defense articles 
or defense services, that the defense arti-
cles or defense services are essential, and 
that alternative sources are not readily or 
reasonably available; or 
(iii) if the President determines that 
such articles or services are essential to the 
national security under defense coproduc-
tion agreements; 
(B) to products or services provided under 
contracts entered into before the date on which 
the President publishes his intention to impose 
sanctions; 
(C) to— 
(i) spare parts, 
(ii) component parts, but not finished 
products, essential to United States prod-
ucts or production, or 
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523 
(iii) routine servicing and mainte-
nance of products, to the extent that alter-
native sources are not readily or reason-
ably available; 
(D) to information and technology essen-
tial to United States products or production; or 
(E) to medical or other humanitarian 
items. 
(d) TERMINATION
OF SANCTIONS.—The sanctions 
imposed pursuant to this section shall apply for a period 
of at least 12 months following the imposition of sanctions 
and shall cease to apply thereafter only if the President 
determines and certifies to the Congress that reliable in-
formation indicates that the foreign person with respect 
to which the determination was made under subsection 
(a)(1) has ceased to aid or abet any foreign government, 
project, or entity in its efforts to acquire chemical or bio-
logical weapons capability as described in that subsection. 
(e) WAIVER.— 
(1) CRITERION
FOR
WAIVER.—The President 
may waive the application of any sanction imposed 
on any person pursuant to this section, after the end 
of the 12-month period beginning on the date on 
which that sanction was imposed on that person, if 
the President determines and certifies to the Con-
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524 
gress that such waiver is important to the national 
security interests of the United States. 
(2) NOTIFICATION OF AND REPORT TO CON-
GRESS.—If the President decides to exercise the 
waiver authority provided in paragraph (1), the 
President shall so notify the Congress not less than 
20 days before the waiver takes effect. Such notifica-
tion shall include a report fully articulating the ra-
tionale and circumstances which led the President to 
exercise the waiver authority. 
(f) DEFINITION OF FOREIGN PERSON.—For the pur-
poses of this section, the term ‘‘foreign person’’ means— 
(1) an individual who is not a citizen of the 
United States or an alien admitted for permanent 
residence to the United States; or 
(2) a corporation, partnership, or other entity 
which is created or organized under the laws of a 
foreign country or which has its principal place of 
business outside the United States. 
Subtitle B—Counter-Narcotics 
Authorities 
SEC. 5201. FINDINGS. 
Congress finds the following: 
(1) International narcotics trafficking poses a 
major transnational threat in today’s world, and its 
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525 
suppression is among the most important foreign 
policy objectives of the United States. 
(2) International criminal activities, particularly 
international narcotics trafficking, money laun-
dering, and corruption, endanger political and eco-
nomic stability and democratic development, and as-
sistance for the prevention and suppression of inter-
national criminal activities should be a priority for 
the United States. 
(3) Effective international cooperation is nec-
essary to control the illicit cultivation, production, 
and smuggling of, trafficking in, and abuse of nar-
cotic and psychotropic drugs and other controlled 
substances. 
(4) In order for countries to effectively combat 
narcotics trafficking and other transnational crimes, 
they must have a strong rule of law system, to in-
clude an honest police force, independent courts, and 
effective prisons. 
(5) Given the magnitude of United States 
counter-narcotics efforts, as well as its impact and 
significance on other dimensions of United States bi-
lateral relations, it is essential that a process be put 
into place that allows the periodic, comprehensive 
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526 
evaluation of these efforts and their foreign policy 
implications. 
SEC. 5202. STATEMENT OF POLICY. 
It shall be the policy of the United States to— 
(1) support international narcotics control pro-
grams that have, as priority goals, the suppression 
of the illicit manufacture of and trafficking in nar-
cotic and psychotropic drugs and other controlled 
substances, money laundering, and the diversion of 
precursor chemicals, and the progressive elimination 
of the illicit cultivation of the crops from which nar-
cotic and psychotropic drugs and other controlled 
substances are derived; 
(2) encourage the international community to 
provide assistance, where appropriate, to those pro-
ducer and transit countries that require assistance 
in discharging these primary obligations; 
(3) use its voice and vote in multilateral devel-
opment banks to promote the development and im-
plementation in the major illicit drug producing 
countries of programs for the reduction and eventual 
eradication of narcotic drugs and other controlled 
substances, including appropriate assistance in con-
junction with effective programs of illicit crop eradi-
cation; 
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527 
(4) ensure that countries adopt comprehensive 
domestic measures against money laundering and 
cooperate with each other in money laundering in-
vestigations, prosecutions, and related forfeiture ac-
tions; and 
(5) endeavor to develop and promote global, re-
gional, sub-regional, and bilateral cooperation among 
judicial, law enforcement and financial regulatory 
authorities in order to combat money-laundering, 
narcotics trafficking, and other transnational crimes. 
SEC. 5203. GOAL AND OBJECTIVES. 
(a) GOAL.—The goal of foreign assistance under this 
subtitle is to help relevant countries build the capacity re-
quired to combat and reduce narcotics trafficking, money 
laundering, and other transnational crimes. 
(b) OBJECTIVES.—In furtherance of the goal de-
scribed in subsection (a), foreign assistance under this 
subtitle shall be provided to achieve the following objec-
tives: 
(1) Increase the professionalization, trans-
parency, and accountability of law enforcement, judi-
cial and penal personnel in the relevant country. 
(2) Improve the ability of law enforcement to 
prevent crimes, pursue and apprehend criminals, and 
increase security within their country. 
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528 
(3) Strengthen the capacity of the judicial sys-
tem to hear and prosecute cases. 
SEC. 5204. GENERAL AUTHORITIES. 
(a) AUTHORITIES OF THE PRESIDENT.—The Presi-
dent is authorized to conclude agreements, including recip-
rocal maritime agreements, with United States State and 
local governments and with other countries to facilitate 
control of the production, processing, transportation, and 
distribution of narcotic and psychotropic drugs and other 
controlled substances. 
(b) AUTHORITIES
OF
THE SECRETARY.—Notwith-
standing any other provision of law restricting assistance 
to foreign countries except sections 10101, 10102, and 
10401, the Secretary is authorized to provide foreign as-
sistance to any country or international organization, on 
such terms and conditions as the Secretary may deter-
mine, for the control of narcotic and psychotropic drugs 
and other controlled substances, or for related anticrime 
purposes. 
(c) COORDINATION
OF
ALL
UNITED
STATES 
ANTINARCOTICS ASSISTANCE TO FOREIGN COUNTRIES.— 
(1) 
RESPONSIBILITY
OF
SECRETARY
OF 
STATE.—The Secretary shall be responsible for co-
ordinating and approving all foreign assistance pro-
vided by the United States Government to support 
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529 
international efforts to combat crime and illicit nar-
cotics production or trafficking. 
(2) RULE
OF
CONSTRUCTION.—Nothing in 
paragraph (1) shall be construed to limit or impair 
the authority or responsibility of any other Federal 
agency with respect to law enforcement, domestic se-
curity operations, or intelligence activities as defined 
in Executive Order No. 12333. 
(d) USE
OF
HERBICIDES
FOR
AERIAL
ERADI-
CATION.— 
(1) MONITORING.—The Secretary, with the as-
sistance of the heads of other appropriate Federal 
agencies, shall monitor any use under this subtitle of 
a herbicide for aerial eradication in order to deter-
mine the impact of such use on the environment and 
on the health of individuals. 
(2) REPORT UPON DETERMINATION OF HARM 
TO
ENVIRONMENT
OR
HEALTH.—If the Secretary 
determines that any such use is harmful to the envi-
ronment or the health of individuals, the Secretary 
shall immediately report that determination to the 
appropriate congressional committees, together with 
such recommendations as the Secretary determines 
appropriate. 
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530 
SEC. 
5205. 
AUTHORIZATION 
OF 
BUREAU 
OF 
INTER-
NATIONAL NARCOTICS AND LAW ENFORCE-
MENT. 
(a) ESTABLISHMENT.—There is established in the 
Department of State a Bureau of International Narcotics 
and Law Enforcement (in this section referred to as the 
‘‘Bureau’’). 
(b) HEAD OF BUREAU.—The head of the Bureau 
shall be an Assistant Secretary of International Narcotics 
and Law Enforcement. 
(c) RESPONSIBILITIES.—The Bureau shall be respon-
sible for supervision (including policy oversight of re-
sources), coordinating, and overseeing programs related to 
international counternarcotics and law enforcement activi-
ties, including— 
(1) strengthening criminal justice systems; 
(2) countering the flow of illegal narcotics, in-
cluding through building interdiction capabilities of 
partner countries and strengthening law enforcement 
and judicial authorities; and 
(3) minimizing transnational crime 
SEC. 5206. USE OF FUNDS. 
(a) TREATMENT OF FUNDS.—Funds transferred to 
and consolidated with funds appropriated to carry out this 
subtitle may be made available on such terms and condi-
tions as are applicable to funds appropriated to carry out 
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531 
this subtitle. Funds so transferred or consolidated shall 
be apportioned directly to the bureau within the Depart-
ment of State responsible for administering this subtitle. 
(b) CONTRIBUTIONS.— 
(1) IN GENERAL.—To ensure local commitment 
to the activities assisted under this subtitle, a coun-
try receiving assistance under this subtitle should 
contribute an appropriate share of the costs of any 
narcotics control program, project, or activity for 
which such assistance is to be provided. A country 
may contribute such costs on an in kind basis. 
(2) ACCEPTANCE.—The Secretary is authorized 
to accept contributions from foreign governments to 
carry out the purposes of this subtitle. Such con-
tributions shall be deposited as an offsetting collec-
tion to the applicable appropriation account and may 
be used under the same terms and conditions as 
funds appropriated to carry out this subtitle. 
(c) ADMINISTRATIVE ASSISTANCE.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), personnel funded pursuant to this section 
are authorized to provide administrative assistance 
to personnel assigned to the Bureau of International 
Narcotics and Law Enforcement. 
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532 
(2) LIMITATION.—Paragraph (1) shall not 
apply to the extent that it would result in a reduc-
tion in funds available for counter-narcotics and 
anticrime assistance to foreign countries. 
(d) ADVANCE
NOTIFICATION
OF
TRANSFER
OF 
SEIZED ASSETS.—The Secretary shall notify the appro-
priate congressional committees at least 10 days prior to 
any transfer by the United States Government to a foreign 
country for narcotics control purposes of any property or 
funds seized by or otherwise forfeited to the United States 
Government in connection with narcotics-related activity. 
(e) EXCESS PROPERTY.—For purposes of this sub-
title, the Secretary may use the authority of section 
11506, without regard to the restrictions of such section, 
to receive nonlethal excess property from any United 
States Government department or agency for the purpose 
of providing such property to a foreign government under 
the same terms and conditions as funds authorized to be 
appropriated for the purposes of this subtitle. 
SEC. 5207. REQUIREMENTS RELATING TO AIRCRAFT AND 
OTHER EQUIPMENT. 
(a) RETENTION OF TITLE TO AIRCRAFT.— 
(1) IN GENERAL.— 
(A) LEASE
OR
LOAN
BASIS.—Except as 
provided in paragraph (2), any aircraft made 
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533 
available to a foreign country under this chap-
ter, or made available to a foreign country pri-
marily for narcotics-related purposes under any 
other provision of law, shall be provided only on 
a lease or loan basis. 
(B) EFFECTIVE DATE.—Subparagraph (A) 
applies to aircraft made available at any time 
after the enactment of this Act. 
(2) EXCEPTIONS.— 
(A) CONTRARY TO NATIONAL INTEREST.— 
The Secretary is authorized to transfer title of 
aircraft by sale or grant if he or she— 
(i) determines that the application of 
paragraph (1) with respect to particular 
aircraft would be contrary to the national 
interest of the United States; and 
(ii) the Secretary notifies the appro-
priate congressional committees in accord-
ance with the procedures applicable to re-
programming notifications under section 
9401. 
(B) FORFEITURE.—Paragraph (1) shall 
not apply with respect to aircraft made avail-
able to a foreign country under any provision of 
law that authorizes property that has been civ-
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534 
illy or criminally forfeited to the United States 
to be made available to foreign countries. 
(3) ASSISTANCE FOR LEASING OF AIRCRAFT.— 
(A) IN GENERAL.—For purposes of satis-
fying the requirement of paragraph (1), funds 
made available for the Foreign Military Financ-
ing Program under title IV may be used to fi-
nance the leasing of aircraft under that title. 
(B) COST OF LEASE.—Section 4351(a)(3) 
shall not apply with respect to leases so fi-
nanced, rather the entire cost of any such lease 
(including any renewals) shall be an initial, one 
time payment of the amount which would be 
the sales price for the aircraft if they were sold 
under section 4311(a)(2) or section 4312 (as 
appropriate). 
(b) PERMISSIBLE USES OF AIRCRAFT AND OTHER 
EQUIPMENT.— 
(1) IN GENERAL.—The Secretary shall take all 
reasonable steps to ensure that aircraft and other 
equipment made available to foreign countries under 
this chapter are used only in ways that are con-
sistent with the purposes for which such equipment 
was made available. 
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535 
(2) EXCEPTION.—Paragraph (1) shall not 
apply to aircraft or other equipment if the Secretary 
makes a determination under section 11508(b) that 
there is an emergency need which requires the use 
of the aircraft or other equipment. 
(c) REPORTS.—In the reports submitted pursuant to 
section 5211, the Secretary shall discuss— 
(1) the actions taken by the United States Gov-
ernment to prevent misuse of such equipment by 
that foreign country; and 
(2) any credible information indicating misuse 
by a foreign country of aircraft or other equipment 
made available under this chapter; and(3) the ac-
tions taken by the United States Government to pre-
vent future misuse of such equipment by that for-
eign country. 
(d) RECORDS OF AIRCRAFT USE.— 
(1) REQUIREMENT TO MAINTAIN RECORDS.— 
The President shall maintain detailed records on the 
use of any aircraft made available to a foreign coun-
try under this chapter, including aircraft made avail-
able before the enactment of this section. 
(2) CONGRESSIONAL
ACCESS
TO
RECORDS.— 
The President shall make the records maintained 
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536 
pursuant to paragraph (1) available upon request to 
the appropriate congressional committees. 
SEC. 5208. RESTRICTIONS. 
(a) PARTICIPATION IN FOREIGN POLICE ACTIONS.— 
Participation in foreign police actions under this subtitle 
shall be subject to the requirements of section 3303(d). 
(b) PROCUREMENT
OF WEAPONS
AND AMMUNI-
TION.— 
(1) PROHIBITION.—Except as provided in para-
graph (2), funds made available to carry out this 
subtitle shall not be made available for the procure-
ment of weapons or ammunition. 
(2) EXCEPTIONS.—Paragraph (1) shall not 
apply with respect to funds for the procurement of— 
(A) weapons or ammunition provided only 
for the defensive arming of aircraft used for 
narcotics-related purposes; or 
(B) firearms and related ammunition pro-
vided only for defensive purposes to employees 
or contract personnel of the Department of 
State engaged in activities under this subtitle, 
if, at least 15 days before obligating those 
funds, the President notifies the appropriate 
congressional committees in accordance with 
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537 
the procedures applicable to reprogramming no-
tifications under section 9401. 
(c) LIMITATIONS ON ACQUISITION OF REAL PROP-
ERTY AND CONSTRUCTION OF FACILITIES.— 
(1) ACQUISITION OF REAL PROPERTY.— 
(A) PROHIBITION.—Funds made available 
to carry out this subtitle may not be used to ac-
quire (by purchase or other means) any land or 
other real property for use by foreign military, 
paramilitary, or law enforcement forces. 
(B) EXCEPTION FOR CERTAIN LEASES.— 
Subparagraph (A) shall not apply to the acqui-
sition of real property by lease of a duration 
not to exceed 2 years. 
(C) 
EXCEPTION
FOR
INTERNATIONAL 
TRAINING
ACADEMIES.—Subparagraph 
(A) 
shall not apply to the acquisition of land of real 
property for use as a training facility for judi-
cial, prosecutorial, law enforcement, or regu-
latory officials. 
(2) CONSTRUCTION OF FACILITIES.— 
(A) LIMITATION.—Funds made available 
to carry out this subtitle may not be used for 
construction of facilities for use by foreign mili-
tary, paramilitary, or law enforcement forces 
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538 
unless, at least 15 days before obligating funds 
for such construction, the President notifies the 
appropriate congressional committees in accord-
ance with procedures applicable to reprogram-
ming notifications under section 9401. 
(B) EXCEPTION.—Paragraph (1) shall not 
apply to the construction of facilities which 
would require the obligation of less than 
$750,000 under this subtitle. 
SEC. 5209. INTERNATIONAL COUNTER-NARCOTICS STRAT-
EGY. 
(a) STRATEGY REQUIRED.—Not later than 1 year 
after the date of the enactment of this Act, and every 4 
years thereafter, the Secretary shall submit to the appro-
priate congressional committees a comprehensive counter- 
narcotics strategy. The strategy shall include— 
(1) a list of the countries which the Secretary 
determines to be— 
(A) a major illicit drug-producing country; 
(B) a major illicit drug-transit country; 
(C) a major money-laundering country; or 
(D) a major source of precursor chemicals; 
(2) defined objectives for the activities of the 
Department of State relating to counter-narcotics, 
for each region and country it plans to target; 
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539 
(3) a description of how such objectives relate 
to, are informed by, and will be coordinated with 
those of relevant countries, as well as with those of 
other bilateral and multilateral donors; 
(4) a definition of the respective roles of each 
Federal department and agency in carrying out the 
strategy, and the mechanisms for coordination; 
(5) a description of the types of policies and 
programs needed to achieve such objectives; 
(6) an analysis of the key opportunities and 
challenges for achieving favorable results in the next 
4-year period; 
(7) a list of indicators and other measurements 
of success to be used in assessing impact, to include 
the indicators listed in section 5210(a)(6); 
(8) the amounts devoted to similar purposes in 
the previous 4-year period, the results achieved and 
the lessons learned; and 
(9) an estimate of the requirements for human 
and financial resources and overseas infrastructure 
to carry out the strategy over the next 4-year period. 
(b) IMPLEMENTATION.—None of the funds made 
available under this title may be obligated or expended for 
any programs, projects, or activities to implement a strat-
egy required under subsection (a) until at least 15 days 
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540 
after the strategy is transmitted to the appropriate con-
gressional committees pursuant to subsection (a). 
(c) DEFINITIONS.—In this section— 
(1) the term ‘‘major illicit drug-producing coun-
try’’ means a country that illicitly produces during 
a fiscal year 5 metric tons or more of opium or 
opium derivative, 500 metric tons or more of coca, 
or 500 metric tons or more of marijuana; 
(2) the term ‘‘major illicit drug-transit country’’ 
means a country— 
(A) that is a significant direct source of il-
licit narcotic or psychotropic drugs or other 
controlled substances significantly affecting the 
United States; 
(B) through which are transported such 
drugs or substances; or 
(C) through which significant sums of 
drug-related profits or monies are laundered 
with the knowledge or complicity of the govern-
ment; 
(3) the term ‘‘major money-laundering country’’ 
means a country whose financial institutions engage 
in 
currency 
transactions 
involving 
significant 
amounts of proceeds from international narcotics 
trafficking; and 
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541 
(4) the term ‘‘major source of precursor chemi-
cals’’ means a country that is among the top 5 pro-
ducers or the top 5 exporters of a listed chemical 
under section 102(33) of the Controlled Substances 
Act (21 U.S.C. 802(33)). 
SEC. 5210. INTERNATIONAL NARCOTICS CONTROL ASSIST-
ANCE REPORT. 
(a) REPORT.—Not later than 1 year after the date 
of the enactment of this Act, and annually thereafter, the 
President shall transmit to the appropriate congressional 
committees a report on international narcotics control as-
sistance. Such report shall, for each country— 
(1) describe the types and amounts of inter-
national narcotics control assistance provided or pro-
posed to be provided by each Federal agency for the 
preceding fiscal year, the current fiscal year, and the 
next fiscal year; 
(2) include all transfers that were made by each 
Federal agency during the preceding fiscal year for 
narcotics control or anti-crime purposes of any prop-
erty seized by or otherwise forfeited to the United 
States Government in connection with narcotics-re-
lated activity, including an estimate of the fair mar-
ket value and physical condition of each item of 
property transferred; 
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542 
(3) discuss the extent to which the country is 
meeting the goals and objectives of the United Na-
tions Convention Against Illicit Traffic in Narcotic 
Drugs and Psychotropic Substances, and the key 
areas in which improvements are needed; 
(4) explain how the strategy described under 
section 5209 is being implemented; 
(5) describe any progress made toward achiev-
ing the goal and objectives in section 5203; 
(6) identify the indicators and metrics to be 
used in assessing the impact of international nar-
cotics control assistance, including the impact of the 
use of herbicides for aerial eradication on the envi-
ronment, the health of individuals, and internal dis-
placement; and 
(7) list any contributions under section 5206(b) 
received in the preceding fiscal year, the amount of 
such contributions, and the purposes for which such 
contributions were used. 
(b) DEFINITION.—In this section, the term ‘‘inter-
national narcotics control assistance’’ means foreign as-
sistance provided by any Federal agency to combat or con-
trol the transit, production, or financing of illicit narcotics. 
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SEC. 5211. NARCOTICS STRATEGY EVALUATION. 
(a) IN GENERAL.—The Comptroller General of the 
United States shall conduct an impact evaluation of pro-
grams carried out by the Bureau of International Nar-
cotics and Law Enforcement, using rigorous quantitative 
data analysis. The evaluation shall measure progress made 
on the following indicators, as appropriate: 
(1) Supply Side Factors, such as— 
(A) estimated illicit drug production; 
(B) estimated illicit drug transshipment; 
(C) estimated illicit drug production and 
transshipment as a percentage of GDP; 
(D) number of individuals and households 
estimated to be involved in illicit drug produc-
tion and transshipment; 
(E) number and average size of illicit 
drug-crop cultivation plots; 
(F) farm-gate price of illicit drug crop; and 
(G) in-country price and purity of illicit 
drug. 
(2) Disruption of Networks, such as— 
(A) drug seizures as a percentage of total 
estimated drug production and transshipment; 
and 
(B) arrests and convictions of major nar-
cotics-related organized crime figures. 
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