
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 22USC2780]

 
               TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
 
                     CHAPTER 39--ARMS EXPORT CONTROL
 
                SUBCHAPTER III--MILITARY EXPORT CONTROLS
 
Sec. 2780. Transactions with countries supporting acts of 
        international terrorism
        

(a) Prohibited transactions by United States Government

    The following transactions by the United States Government are 
prohibited:
        (1) Exporting or otherwise providing (by sale, lease or loan, 
    grant, or other means), directly or indirectly, any munitions item 
    to a country described in subsection (d) of this section under the 
    authority of this chapter, the Foreign Assistance Act of 1961 [22 
    U.S.C. 2151 et seq.], or any other law (except as provided in 
    subsection (h) of this section). In implementing this paragraph, the 
    United States Government--
            (A) shall suspend delivery to such country of any such item 
        pursuant to any such transaction which has not been completed at 
        the time the Secretary of State makes the determination 
        described in subsection (d) of this section, and
            (B) shall terminate any lease or loan to such country of any 
        such item which is in effect at the time the Secretary of State 
        makes that determination.

        (2) Providing credits, guarantees, or other financial assistance 
    under the authority of this chapter, the Foreign Assistance Act of 
    1961 [22 U.S.C. 2151 et seq.], or any other law (except as provided 
    in subsection (h) of this section), with respect to the acquisition 
    of any munitions item by a country described in subsection (d) of 
    this section. In implementing this paragraph, the United States 
    Government shall suspend expenditures pursuant to any such 
    assistance obligated before the Secretary of State makes the 
    determination described in subsection (d) of this section. The 
    President may authorize expenditures otherwise required to be 
    suspended pursuant to the preceding sentence if the President has 
    determined, and reported to the Congress, that suspension of those 
    expenditures causes undue financial hardship to a supplier, shipper, 
    or similar person and allowing the expenditure will not result in 
    any munitions item being made available for use by such country.
        (3) Consenting under section 2753(a) of this title, under 
    section 505(a) of the Foreign Assistance Act of 1961 [22 U.S.C. 
    2314(a)], under the regulations issued to carry out section 2778 of 
    this title, or under any other law (except as provided in subsection 
    (h) of this section), to any transfer of any munitions item to a 
    country described in subsection (d) of this section. In implementing 
    this paragraph, the United States Government shall withdraw any such 
    consent which is in effect at the time the Secretary of State makes 
    the determination described in subsection (d) of this section, 
    except that this sentence does not apply with respect to any item 
    that has already been transferred to such country.
        (4) Providing any license or other approval under section 2778 
    of this title for any export or other transfer (including by means 
    of a technical assistance agreement, manufacturing licensing 
    agreement, or coproduction agreement) of any munitions item to a 
    country described in subsection (d) of this section. In implementing 
    this paragraph, the United States Government shall suspend any such 
    license or other approval which is in effect at the time the 
    Secretary of State makes the determination described in subsection 
    (d) of this section, except that this sentence does not apply with 
    respect to any item that has already been exported or otherwise 
    transferred to such country.
        (5) Otherwise facilitating the acquisition of any munitions item 
    by a country described in subsection (d) of this section. This 
    paragraph applies with respect to activities undertaken--
            (A) by any department, agency, or other instrumentality of 
        the Government,
            (B) by any officer or employee of the Government (including 
        members of the United States Armed Forces), or
            (C) by any other person at the request or on behalf of the 
        Government.

The Secretary of State may waive the requirements of the second sentence 
of paragraph (1), the second sentence of paragraph (3), and the second 
sentence of paragraph (4) to the extent that the Secretary determines, 
after consultation with the Congress, that unusual and compelling 
circumstances require that the United States Government not take the 
actions specified in that sentence.

(b) Prohibited transactions by United States persons

                           (1) In general

        A United States person may not take any of the following 
    actions:
            (A) Exporting any munitions item to any country described in 
        subsection (d) of this section.
            (B) Selling, leasing, loaning, granting, or otherwise 
        providing any munitions item to any country described in 
        subsection (d) of this section.
            (C) Selling, leasing, loaning, granting, or otherwise 
        providing any munitions item to any recipient which is not the 
        government of or a person in a country described in subsection 
        (d) of this section if the United States person has reason to 
        know that the munitions item will be made available to any 
        country described in subsection (d) of this section.
            (D) Taking any other action which would facilitate the 
        acquisition, directly or indirectly, of any munitions item by 
        the government of any country described in subsection (d) of 
        this section, or any person acting on behalf of that government, 
        if the United States person has reason to know that that action 
        will facilitate the acquisition of that item by such a 
        government or person.

       (2) Liability for actions of foreign subsidiaries, etc.

        A United States person violates this subsection if a corporation 
    or other person that is controlled in fact by that United States 
    person (as determined under regulations, which the President shall 
    issue) takes an action described in paragraph (1) outside the United 
    States.

       (3) Applicability to actions outside the United States

        Paragraph (1) applies with respect to actions described in that 
    paragraph which are taken either within or outside the United States 
    by a United States person described in subsection (l)(3)(A) or (B) 
    of this section. To the extent provided in regulations issued under 
    subsection (l)(3)(D) of this section, paragraph (1) applies with 
    respect to actions described in that paragraph which are taken 
    outside the United States by a person designated as a United States 
    person in those regulations.

(c) Transfers to governments and persons covered

    This section applies with respect to--
        (1) the acquisition of munitions items by the government of a 
    country described in subsection (d) of this section; and
        (2) the acquisition of munitions items by any individual, group, 
    or other person within a country described in subsection (d) of this 
    section, except to the extent that subparagraph (D) of subsection 
    (b)(1) of this section provides otherwise.

(d) Countries covered by prohibition

    The prohibitions contained in this section apply with respect to a 
country if the Secretary of State determines that the government of that 
country has repeatedly provided support for acts of international 
terrorism. For purposes of this subsection, such acts shall include all 
activities that the Secretary determines willfully aid or abet the 
international proliferation of nuclear explosive devices to individuals 
or groups or willfully aid or abet an individual or groups in acquiring 
unsafeguarded special nuclear material.

(e) Publication of determinations

    Each determination of the Secretary of State under subsection (d) of 
this section shall be published in the Federal Register.

(f) Rescission

    (1) A determination made by the Secretary of State under subsection 
(d) of this section may not be rescinded unless the President submits to 
the Speaker of the House of Representatives and the chairman of the 
Committee on Foreign Relations of the Senate--
        (A) before the proposed rescission would take effect, a report 
    certifying that--
            (i) there has been a fundamental change in the leadership 
        and policies of the government of the country concerned;
            (ii) that government is not supporting acts of international 
        terrorism; and
            (iii) that government has provided assurances that it will 
        not support acts of international terrorism in the future; or

        (B) at least 45 days before the proposed rescission would take 
    effect, a report justifying the rescission and certifying that--
            (i) the government concerned has not provided any support 
        for international terrorism during the preceding 6-month period; 
        and
            (ii) the government concerned has provided assurances that 
        it will not support acts of international terrorism in the 
        future.

    (2)(A) No rescission under paragraph (1)(B) of a determination under 
subsection (d) of this section may be made if the Congress, within 45 
days after receipt of a report under paragraph (1)(B), enacts a joint 
resolution the matter after the resolving clause of which is as follows: 
``That the proposed rescission of the determination under section 40(d) 
of the Arms Export Control Act pursuant to the report submitted to the 
Congress on __________________ is hereby prohibited.'', the blank to be 
completed with the appropriate date.
    (B) A joint resolution described in subparagraph (A) and introduced 
within the appropriate 45-day period shall be considered in the Senate 
and the House of Representatives in accordance with paragraphs (3) 
through (7) of section 8066(c) of the Department of Defense 
Appropriations Act (as contained in Public Law 98-473), except that 
references in such paragraphs to the Committees on Appropriations of the 
House of Representatives and the Senate shall be deemed to be references 
to the Committee on Foreign Affairs of the House of Representatives and 
the Committee on Foreign Relations of the Senate, respectively.

(g) Waiver

    The President may waive the prohibitions contained in this section 
with respect to a specific transaction if--
        (1) the President determines that the transaction is essential 
    to the national security interests of the United States; and
        (2) not less than 15 days prior to the proposed transaction, the 
    President--
            (A) consults with the Committee on Foreign Affairs of the 
        House of Representatives and the Committee on Foreign Relations 
        of the Senate; and
            (B) submits to the Speaker of the House of Representatives 
        and the chairman of the Committee on Foreign Relations of the 
        Senate a report containing--
                (i) the name of any country involved in the proposed 
            transaction, the identity of any recipient of the items to 
            be provided pursuant to the proposed transaction, and the 
            anticipated use of those items;
                (ii) a description of the munitions items involved in 
            the proposed transaction (including their market value) and 
            the actual sale price at each step in the transaction (or if 
            the items are transferred by other than sale, the manner in 
            which they will be provided);
                (iii) the reasons why the proposed transaction is 
            essential to the national security interests of the United 
            States and the justification for such proposed transaction;
                (iv) the date on which the proposed transaction is 
            expected to occur; and
                (v) the name of every United States Government 
            department, agency, or other entity involved in the proposed 
            transaction, every foreign government involved in the 
            proposed transaction, and every private party with 
            significant participation in the proposed transaction.

To the extent possible, the information specified in subparagraph (B) of 
paragraph (2) shall be provided in unclassified form, with any 
classified information provided in an addendum to the report.

(h) Exemption for transactions subject to National Security Act 
        reporting requirements

    The prohibitions contained in this section do not apply with respect 
to any transaction subject to reporting requirements under title V of 
the National Security Act of 1947 (50 U.S.C. 413 et seq.; relating to 
congressional oversight of intelligence activities).

(i) Relation to other laws

                           (1) In general

        With regard to munitions items controlled pursuant to this 
    chapter, the provisions of this section shall apply notwithstanding 
    any other provision of law, other than section 614(a) of the Foreign 
    Assistance Act of 1961 (22 U.S.C. 2364(a)).

                 (2) Section 614(a) waiver authority

        If the authority of section 614(a) of the Foreign Assistance Act 
    of 1961 [22 U.S.C. 2364(a)] is used to permit a transaction under 
    that Act [22 U.S.C. 2151 et seq.] or this chapter which is otherwise 
    prohibited by this section, the written policy justification 
    required by that section shall include the information specified in 
    subsection (g)(2)(B) of this section.

(j) Criminal penalty

    Any person who willfully violates this section shall be fined for 
each violation not more than $1,000,000, imprisoned not more than 10 
years, or both.

(k) Civil penalties; enforcement

    In the enforcement of this section, the President is authorized to 
exercise the same powers concerning violations and enforcement which are 
conferred upon departments, agencies, and officials by sections 11(c), 
11(e), 11(g), and 12(a) of the Export Administration Act of 1979 [50 
App. U.S.C. 2410(c), (e), (g), 2411(a)] (subject to the same terms and 
conditions as are applicable to such powers under that Act [50 App. 
U.S.C. 2401 et seq.]), except that section 11(c)(2)(B) of such Act shall 
not apply, and instead, as prescribed in regulations issued under this 
section, the Secretary of State may assess civil penalties for 
violations of this chapter and regulations prescribed thereunder and 
further may commence a civil action to recover such civil penalties, and 
except further that, notwithstanding section 11(c) of that Act, the 
civil penalty for each violation of this section may not exceed 
$500,000.

(l) Definitions

    As used in this section--
        (1) the term ``munitions item'' means any item enumerated on the 
    United States Munitions list \1\ (without regard to whether the item 
    is imported into or exported from the United States);
---------------------------------------------------------------------------
    \1\ So in original. Probably should be capitalized.
---------------------------------------------------------------------------
        (2) the term ``United States'', when used geographically, means 
    the several States, the District of Columbia, the Commonwealth of 
    Puerto Rico, the Commonwealth of the Northern Mariana Islands, and 
    any territory or possession of the United States;
        (3) the term ``United States person'' means--
            (A) any citizen or permanent resident alien of the United 
        States;
            (B) any sole proprietorship, partnership, company, 
        association, or corporation having its principal place of 
        business within the United States or organized under the laws of 
        the United States, any State, the District of Columbia, the 
        Commonwealth of Puerto Rico, the Commonwealth of the Northern 
        Mariana Islands, or any territory or possession of the United 
        States;
            (C) any other person with respect to that person's actions 
        while in the United States; and
            (D) to the extent provided in regulations issued by the 
        Secretary of State, any person that is not described in 
        subparagraph (A), (B), or (C) but--
                (i) is a foreign subsidiary or affiliate of a United 
            States person described in subparagraph (B) and is 
            controlled in fact by that United States person (as 
            determined in accordance with those regulations), or
                (ii) is otherwise subject to the jurisdiction of the 
            United States,

        with respect to that person's actions while outside the United 
        States;

        (4) the term ``nuclear explosive device'' has the meaning given 
    that term in section 6305(4) of this title; and
        (5) the term ``unsafeguarded special nuclear material'' has the 
    meaning given that term in section 6305(8) of this title.

(Pub. L. 90-629, ch. 3, Sec. 40, as added Pub. L. 99-399, title V, 
Sec. 509(a), Aug. 27, 1986, 100 Stat. 874; amended Pub. L. 101-222, 
Sec. 2(a), Dec. 12, 1989, 103 Stat. 1892; Pub. L. 102-138, title III, 
Sec. 321, Oct. 28, 1991, 105 Stat. 710; Pub. L. 103-236, title VIII, 
Sec. 822(a)(2), Apr. 30, 1994, 108 Stat. 511; Pub. L. 106-113, div. B, 
Sec. 1000(a)(7) [div. B, title XIII, Sec. 1303], Nov. 29, 1999, 113 
Stat. 1536, 1501A-511.)

                       References in Text

    The Foreign Assistance Act of 1961, referred to in subsecs. (a)(1), 
(2) and (i)(2), is Pub. L. 87-195, Sept. 4, 1961, 75 Stat. 424, as 
amended, which is classified principally to chapter 32 (Sec. 2151 et 
seq.) of this title. For complete classification of this Act to the 
Code, see Short Title note set out under section 2151 of this title and 
Tables.
    Section 40(d) of the Arms Export Control Act, referred to in subsec. 
(f)(2)(A), is classified to subsec. (d) of this section.
    Paragraphs (3) through (7) of section 8066(c) of the Department of 
Defense Appropriations Act (as contained in Public Law 98-473), referred 
to in subsec. (f)(2)(B), is Pub. L. 98-473, title I, Sec. 101(h) [title 
VIII, Sec. 8066(c)(3)-(7)], Oct. 12, 1984, 98 Stat. 1904, 1936, 1937, 
which is not classified to the Code.
    The National Security Act of 1947, referred to in subsec. (h), is 
act July 26, 1947, ch. 343, 61 Stat. 495, as amended. Title V of the 
National Security Act of 1947 is classified generally to subchapter III 
(Sec. 413 et seq.) of chapter 15 of Title 50, War and National Defense. 
For complete classification of this Act to the Code, see Short Title 
note set out under section 401 of Title 50.
    The Export Administration Act of 1979, referred to in subsec. (k), 
is Pub. L. 96-72, Sept. 29, 1979, 93 Stat. 503, as amended, which is 
classified principally to section 2401 et seq. of the Appendix to Title 
50. For complete classification of this Act to the Code, see Short Title 
note set out under section 2401 of the Appendix to Title 50 and Tables.


                               Amendments

    1999--Subsec. (k). Pub. L. 106-113 inserted ``section 11(c)(2)(B) of 
such Act shall not apply, and instead, as prescribed in regulations 
issued under this section, the Secretary of State may assess civil 
penalties for violations of this chapter and regulations prescribed 
thereunder and further may commence a civil action to recover such civil 
penalties, and except further that'' after ``except that''.
    1994--Subsec. (d). Pub. L. 103-236, Sec. 822(a)(2)(A), inserted at 
end ``For purposes of this subsection, such acts shall include all 
activities that the Secretary determines willfully aid or abet the 
international proliferation of nuclear explosive devices to individuals 
or groups or willfully aid or abet an individual or groups in acquiring 
unsafeguarded special nuclear material.''
    Subsec. (l). Pub. L. 103-236, Sec. 822(a)(2)(B), amended subsec. (l) 
by striking ``and'' after the semicolon in par. (2), substituting a 
semicolon for the period at the end of par. (3), and adding pars. (4) 
and (5).
    1991--Subsec. (f). Pub. L. 102-138, Sec. 321, designated existing 
provisions as par. (1), redesignated former par. (1) as subpar. (A) and 
former subpars. (A) to (C) as cls. (i) to (iii), respectively, 
redesignated former par. (2) as subpar. (B) and former subpars. (A) and 
(B) as cls. (i) and (ii), respectively, and added par. (2). So much of 
Pub. L. 102-138, Sec. 321(1), as directed that subpar. (C) of former 
par. (2) be redesignated cl. (iii) of par. (1)(B), could not be executed 
because no such subpar. (C) had been enacted.
    1989--Pub. L. 101-222 substituted ``Transactions with'' for 
``Exports to'' in section catchline and amended text generally. Prior to 
amendment, text read as follows:
    ``(a) Prohibition.--Except as provided in subsection (b) of this 
section, items on the United States Munitions List may not be exported 
to any country which the Secretary of State has determined, for purposes 
of section 6(j)(1)(A) of the Export Administration Act of 1979 (50 
U.S.C. App. 2405(j)(1)(A)), has repeatedly provided support for acts of 
international terrorism.
    ``(b) Waiver.--The President may waive the prohibition contained in 
subsection (a) of this section in the case of a particular export if the 
President determines that the export is important to the national 
interests of the United States and submits to the Congress a report 
justifying that determination and describing the proposed export. Any 
such waiver shall expire at the end of 90 days after it is granted 
unless the Congress enacts a law extending the waiver.''

                         Change of Name

    Committee on Foreign Affairs of House of Representatives treated as 
referring to Committee on International Relations of House of 
Representatives by section 1(a) of Pub. L. 104-14, set out as a note 
preceding section 21 of Title 2, The Congress.


                    Effective Date of 1994 Amendment

    Amendment by Pub. L. 103-236 effective 60 days after Apr. 30, 1994, 
see section 831 of Pub. L. 103-236, set out as an Effective Date note 
under section 6301 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 2371, 2656g, 3281, 7205 of 
this title; title 50 sections 2202, 2332.
