Text: H.R.1724 — 102nd Congress (1991-1992)All Information (Except Text)

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--H.R.1724--
H.R.1724
One Hundred Second Congress of the United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Thursday, the third day of January,
one thousand nine hundred and ninety-one
An Act
To provide for the termination of the application of title IV of the Trade
Act of 1974
to Czechoslovakia and Hungary.
 Be it enacted by the Senate and House of Representatives of the United
 States of America in Congress assembled,
SECTION 1. CONGRESSIONAL FINDINGS AND PREPARATORY PRESIDENTIAL ACTION.
 (a) CONGRESSIONAL FINDINGS- The Congress finds that the Czech and Slovak
 Federal Republic and the Republic of Hungary both have--
 (1) dedicated themselves to respect for fundamental human rights;
 (2) accorded to their citizens the right to emigrate and to travel freely;
 (3) reversed over 40 years of communist dictatorship and embraced the
 establishment of political pluralism, free and fair elections, and multi-party
 political systems;
 (4) introduced far-reaching economic reforms based on market-oriented
 principles and have decentralized economic decisionmaking; and
 (5) demonstrated a strong desire to build friendly relationships with the
 United States.
 (b) PREPARATORY PRESIDENTIAL ACTION- The Congress notes that the President
 in anticipation of the enactment of section 2, has directed the United
 States Trade Representative to negotiate with the Czech and Slovak Federal
 Republic and the Republic of Hungary, respectively, in order to--
 (1) preserve the commitments of that country under the bilateral commercial
 agreement in effect between that country and the United States that are
 consistent with the General Agreement on Tariffs and Trade; and
 (2) obtain other appropriate commitments.
SEC. 2. TERMINATION OF APPLICATION OF TITLE IV OF THE TRADE ACT OF 1974 TO
CZECHOSLOVAKIA AND HUNGARY.
 (a) PRESIDENTIAL DETERMINATIONS AND EXTENSION OF NONDISCRIMINATORY TREATMENT-
 Notwithstanding any provision of title IV of the Trade Act of 1974 (19
 U.S.C. 2431 et seq.), the President may--
 (1) determine that such title should no longer apply to the Czech and Slovak
 Federal Republic or to the Republic of Hungary, or to both; and
 (2) after making a determination under paragraph (1) with respect
 to a country, proclaim the extension of nondiscriminatory treatment
 (most-favored-nation treatment) to the products of that country.
 (b) TERMINATION OF APPLICATION OF TITLE IV- On and after the effective date
 of the extension under subsection (a)(2) of nondiscriminatory treatment to
 the products of a country, title IV of the Trade Act of 1974 shall cease
 to apply to that country.
SEC. 3. MODIFICATION OF THE EMERGENCY UNEMPLOYMENT COMPENSATION ACT OF 1991.
 (a) TWO-TIER APPLICABLE LIMIT-
 (1) Section 102(b)(2)(A) of the Emergency Unemployment Compensation Act
 of 1991 is amended by striking clauses (ii) and (iii) and inserting the
 following new clause:
 `(ii) In the case of a 13-week period, the applicable limit is 13.'
 (2) Section 102(d) of the Emergency Unemployment Compensation Act of 1991
 is amended to read as follows:
 `(d) 13-WEEK PERIOD- For purposes of this section, the term `13-week period'
 means with respect to any State any period which is not a 20-week period.'
 (3) Section 102(f)(3)(A) of the Emergency Unemployment Compensation Act of
 1991 is amended to read as follows:
 `(A) IN GENERAL- If any individual has a benefit year which ends
 after February 28, 1991, such individual shall be entitled to emergency
 unemployment compensation under this Act in the same manner as if such
 individual's benefit year ended no earlier than the last day of the first
 week following November 16, 1991.'.
 (4) Section 102(g)(2) of the Emergency Unemployment Compensation Act of
 1991 is amended to read as follows:
 `(2) SPECIAL RULES- A 20-week period shall begin in any State with the
 1st week for which emergency unemployment compensation may be payable in
 such State under this title if, on the basis of information submitted to
 the Committee on Ways and Means of the House of Representatives by the
 Department of Labor on November 7, 1991, the requirements of subsection
 (c)(2) are satisfied by such State for the week which ends October 19, 1991.'
 (5) Section 106(a) is amended by striking paragraph (4) and redesignating
 paragraph (5) as paragraph (4).
 (6) Sections 102(f)(1)(B), 102(f)(2), 106(a)(2), and 501(b) (1) and (2)
 of the Emergency Unemployment Compensation Act of 1991 are each amended by
 striking `July 4, 1992' and inserting `June 13, 1992'.
 (7) Section 501(a) of the Emergency Unemployment Compensation Act of 1991
 is amended by striking `July, 1992' and inserting `June, 1992'.
 (b) EFFECTIVE DATE- The amendments made by this section shall apply as if
 included in the provisions of and the amendments made by the `Emergency
 Unemployment Compensation Act of 1991.'
SEC. 4. REPEAL OF THE PROHIBITION ON THE IMPORTATION OF SOVIET GOLD COINS.
 Section 510 of the Comprehensive Anti-Apartheid Act of 1986 (22 U.S.C. 5100)
 is repealed.
TITLE I--EXTENSION OF NONDISCRIMINATORY TREATMENT TO ESTONIA, LATVIA,
AND LITHUANIA.
SEC. 101. CONGRESSIONAL FINDINGS.
 The Congress finds the following:
 (1) The Government of the United States extended full diplomatic recognition
 to Estonia, Latvia, and Lithuania in 1922.
 (2) The Government of the United States entered into agreements extending
 most-favored-nation treatment with the Government of Estonia on August 1,
 1925, the Government of Latvia on April 30, 1926, and the Government of
 Lithuania on July 10, 1926.
 (3) The Union of Soviet Socialist Republics incorporated Estonia, Latvia,
 and Lithuania involuntarily into the Union as a result of a secret protocol
 to a German-Soviet agreement in 1939 which assigned those three states to
 the Soviet sphere of influence; and the Government of the United States
 has at no time recognized the forcible incorporation of those states into
 the Union of Soviet Socialist Republics.
 (4) The Trade Agreements Extension Act of 1951 required the President to
 suspend, withdraw, or prevent the application of trade benefits, including
 most-favored-nation treatment, to countries under the domination or control
 of the world Communist movement.
 (5) In 1951, responsible representatives of Estonia, Latvia, and Lithuania
 stated that they did not object to the imposition of `such controls as
 the Government of the United States may consider to be appropriate' to
 the products of those countries, for such time as those countries remained
 under Soviet domination or control.
 (6) In 1990, the democratically elected governments of Estonia, Latvia,
 and Lithuania declared the restoration of their independence from the Union
 of Soviet Socialist Republics.
 (7) The Government of the United States established diplomatic relations
 with Estonia, Latvia, and Lithuania on September 2, 1991, and on September
 6, 1991, the State Council of the transitional government of the Union of
 Soviet Socialist Republics recognized the independence of Estonia, Latvia,
 and Lithuania, thereby ending the involuntary incorporation of those
 countries into, and the domination of those countries by, the Soviet Union.
 (8) Immediate action should be taken to remove the impediments, imposed in
 response to the circumstances referred to in paragraph (5), in United
 States trade laws to the extension of nondiscriminatory treatment
 (most-favored-nation treatment) to the products of those countries.
 (9) As a consequence of establishment of United States diplomatic relations
 with Estonia, Latvia, and Lithuania, these independent countries are eligible
 to receive the benefits of the Generalized System of Preferences provided
 for in title V of the Trade Act of 1974.
SEC. 102. EXTENSION OF NONDISCRIMINATORY TREATMENT TO THE PRODUCTS OF ESTONIA,
LATVIA, AND LITHUANIA.
 (a) IN GENERAL- Notwithstanding any provision of title IV of the Trade Act of
 1974 (19 U.S.C. 2431 et seq.) or any other provision of law, nondiscriminatory
 treatment (most-favored-nation treatment) applies to the products of Estonia,
 Latvia, and Lithuania.
 (b) CONFORMING TARIFF SCHEDULE AMENDMENTS- General Note 3(b) of the Harmonized
 Tariff Schedule of the United States is amended by striking out `Estonia',
 `Latvia', and `Lithuania'.
 (c) EFFECTIVE DATE- Subsection (a) and the amendments made by subsection
 (b) apply with respect to goods entered, or withdrawn from warehouse for
 consumption, on or after the 15th day after the date of the enactment of
 this Act.
SEC. 103. TERMINATION OF APPLICATION OF TITLE IV OF THE TRADE ACT OF 1974
TO THE BALTICS.
 Title IV of the Trade Act of 1974 (19 U.S.C. 2431 et seq.) shall cease to
 apply to Estonia, Latvia, and Lithuania effective as of the 15th day after
 the date of the enactment of this Act.
SEC. 104. SENSE OF THE CONGRESS REGARDING PROMPT PROVISION OF GSP TREATMENT
TO THE PRODUCTS OF ESTONIA, LATVIA, AND LITHUANIA.
 It is the sense of the Congress that the President should take prompt action
 under title V of the Trade Act of 1974 to provide preferential tariff
 treatment to the products of Estonia, Latvia, and Lithuania pursuant to
 the Generalized System of Preferences.
TITLE II--TRADE PREFERENCE FOR THE ANDEAN REGION
SEC. 201. SHORT TITLE.
 This title may be cited as the `Andean Trade Preference Act'.
SEC. 202. AUTHORITY TO GRANT DUTY-FREE TREATMENT.
 The President may proclaim duty-free treatment for all eligible articles
 from any beneficiary country in accordance with the provisions of this title.
SEC. 203. BENEFICIARY COUNTRY.
 (a) DEFINITIONS- For purposes of this title--
 (1) The term `beneficiary country' means any country listed in subsection
 (b)(1) with respect to which there is in effect a proclamation by the
 President designating such country as a beneficiary country for purposes
 of this title.
 (2) The term `entered' means entered, or withdrawn from warehouse for
 consumption, in the customs territory of the United States.
 (3) The term `HTS' means Harmonized Tariff Schedule of the United States.
 (b) COUNTRIES ELIGIBLE FOR DESIGNATION; CONGRESSIONAL NOTIFICATION- (1) In
 designating countries as beneficiary countries under this title, the President
 shall consider only the following countries or successor political entities:
 Bolivia
 Ecuador
 Colombia
 Peru.
 (2) Before the President designates any country as a beneficiary country
 for purposes of this title, he shall notify the House of Representatives
 and the Senate of his intention to make such designation, together with
 the considerations entering into such decision.
 (c) LIMITATIONS ON DESIGNATION- The President shall not designate any
 country a beneficiary country under this title--
 (1) if such country is a Communist country;
 (2) if such country--
 (A) has nationalized, expropriated or otherwise seized ownership or control of
 property owned by a United States citizen or by a corporation, partnership,
 or association which is 50 percent or more beneficially owned by United
 States citizens,
 (B) has taken steps to repudiate or nullify--
 (i) any existing contract or agreement with, or
 (ii) any patent, trademark, or other intellectual property of,
a United States citizen or a corporation, partnership, or association,
which is 50 percent or more beneficially owned by United States citizens,
the effect of which is to nationalize, expropriate, or otherwise seize
ownership or control of property so owned, or
 (C) has imposed or enforced taxes or other exactions, restrictive maintenance
 or operational conditions, or other measures with respect to property so
 owned, the effect of which is to nationalize, expropriate, or otherwise seize
 ownership or control of such property, unless the President determines that--
 (i) prompt, adequate, and effective compensation has been or is being made
 to such citizen, corporation, partnership, or association,
 (ii) good-faith negotiations to provide prompt, adequate, and effective
 compensation under the applicable provisions of international law are
 in progress, or such country is otherwise taking steps to discharge its
 obligations under international law with respect to such citizen, corporation,
 partnership, or association, or
 (iii) a dispute involving such citizen, corporation, partnership, or
 association, over compensation for such a seizure has been submitted to
 arbitration under the provisions of the Convention for the Settlement of
 Investment Disputes, or in another mutually agreed upon forum, and
promptly furnishes a copy of such determination to the Senate and House
of Representatives;
 (3) if such country fails to act in good faith in recognizing as binding or in
 enforcing arbitral awards in favor of United States citizens or a corporation,
 partnership, or association which is 50 percent or more beneficially owned
 by United States citizens, which have been made by arbitrators appointed
 for each case or by permanent arbitral bodies to which the parties involved
 have submitted their dispute;
 (4) if such country affords preferential treatment to the products of a
 developed country, other than the United States, and if such preferential
 treatment has, or is likely to have, a significant adverse effect on United
 States commerce, unless the President--
 (A) has received assurances satisfactory to him that such preferential
 treatment will be eliminated or that action will be taken to assure that
 there will be no such significant adverse effect, and
 (B) reports those assurances to the Congress;
 (5) if a government-owned entity in such country engages in the broadcast
 of copyrighted material, including films or television material, belonging
 to United States copyright owners without their express consent or such
 country fails to work towards the provision of adequate and effective
 protection of intellectual property rights;
 (6) unless such country is a signatory to a treaty, convention, protocol,
 or other agreement regarding the extradition of United States citizens; and
 (7) if such country has not or is not taking steps to afford internationally
 recognized worker rights (as defined in section 502(a)(4) of the Trade
 Act of 1974) to workers in the country (including any designated zone in
 that country).
Paragraphs (1), (2), (3), (5), and (7) shall not prevent the designation
of any country as a beneficiary country under this title if the President
determines that such designation will be in the national economic or security
interest of the United States and reports such determination to the Congress
with his reasons therefor.
 (d) FACTORS AFFECTING DESIGNATION- In determining whether to designate any
 country a beneficiary country under this title, the President shall take
 into account--
 (1) an expression by such country of its desire to be so designated;
 (2) the economic conditions in such country, the living standards of its
 inhabitants, and any other economic factors which he deems appropriate;
 (3) the extent to which such country has assured the United States it will
 provide equitable and reasonable access to the markets and basic commodity
 resources of such country;
 (4) the degree to which such country follows the accepted rules of
 international trade provided for under the General Agreement on Tariffs and
 Trade, as well as applicable trade agreements approved under section 2(a)
 of the Trade Agreements Act of 1979;
 (5) the degree to which such country uses export subsidies or imposes
 export performance requirements or local content requirements which distort
 international trade;
 (6) the degree to which the trade policies of such country as they relate
 to other beneficiary countries are contributing to the revitalization of
 the region;
 (7) the degree to which such country is undertaking self-help measures to
 protect its own economic development;
 (8) whether or not such country has taken or is taking steps to afford to
 workers in that country (including any designated zone in that country)
 internationally recognized worker rights;
 (9) the extent to which such country provides under its law adequate and
 effective means for foreign nationals to secure, exercise, and enforce
 exclusive rights in intellectual property, including patent, trademark,
 and copyright rights;
 (10) the extent to which such country prohibits its nationals from engaging in
 the broadcast of copyrighted material, including films or television material,
 belonging to United States copyright owners without their express consent;
 (11) whether such country has met the narcotics cooperation certification
 criteria set forth in section 481(h)(2)(A) of the Foreign Assistance Act
 of 1961 for eligibility for United States assistance; and
 (12) the extent to which such country is prepared to cooperate with the
 United States in the administration of the provisions of this Act.
 (e) WITHDRAWAL OR SUSPENSION OF DESIGNATION- (1) The President may--
 (A) withdraw or suspend the designation of any country as a beneficiary
 country, or
 (B) withdraw, suspend, or limit the application of duty-free treatment
 under this title to any article of any country,
if, after such designation, the President determines that as a result of
changed circumstances such a country should be barred from designation as
a beneficiary country.
 (2)(A) The President shall publish in the Federal Register notice of the
 action the President proposes to take under paragraph (1) at least 30 days
 before taking such action.
 (B) The United States Trade Representative shall, within the 30-day period
 beginning on the date on which the President publishes under subparagraph
 (A) notice of proposed action--
 (i) accept written comments from the public regarding such proposed action,
 (ii) hold a public hearing on such proposed action, and
 (iii) publish in the Federal Register--
 (I) notice of the time and place of such hearing prior to the hearing, and
 (II) the time and place at which such written comments will be accepted.
 (f) TRIENNIAL REPORT- On or before the 3rd, 6th, and 9th anniversaries
 of the date of the enactment of this title, the President shall submit
 to the Congress a complete report regarding the operation of this title,
 including the results of a general review of beneficiary countries based
 on the considerations described in subsections (c) and (d). In reporting
 on the considerations described in subsection (d)(11), the President shall
 report any evidence that the crop eradication and crop substitution efforts
 of the beneficiary are directly related to the effects of this title.
SEC. 204. ELIGIBLE ARTICLES.
 (a) IN GENERAL- (1) Unless otherwise excluded from eligibility by this title,
 the duty-free treatment provided under this title shall apply to any article
 which is the growth, product, or manufacture of a beneficiary country if--
 (A) that article is imported directly from a beneficiary country into the
 customs territory of the United States; and
 (B) the sum of--
 (i) the cost or value of the materials produced in a beneficiary country or 2
 or more beneficiary countries under this Act, or a beneficiary country under
 the Caribbean Basin Economic Recovery Act or 2 or more such countries, plus
 (ii) the direct costs of processing operations performed in a beneficiary
 country or countries (under this Act or the Caribbean Basin Economic
 Recovery Act),
is not less than 35 percent of the appraised value of such article at the
time it is entered.
For purposes of determining the percentage referred to in subparagraph (B),
the term `beneficiary country' includes the Commonwealth of Puerto Rico and
the United States Virgin Islands. If the cost or value of materials produced
in the customs territory of the United States (other than the Commonwealth of
Puerto Rico) is included with respect to an article to which this paragraph
applies, an amount not to exceed 15 percent of the appraised value of the
article at the time it is entered that is attributed to such United States
cost or value may be applied toward determining the percentage referred to
in subparagraph (B).
 (2) The Secretary of the Treasury shall prescribe such regulations as
 may be necessary to carry out subsection (a) including, but not limited
 to, regulations providing that, in order to be eligible for duty-free
 treatment under this title, an article must be wholly the growth, product,
 or manufacture of a beneficiary country, or must be a new or different
 article of commerce which has been grown, produced, or manufactured in the
 beneficiary country; but no article or material of a beneficiary country
 shall be eligible for such treatment by virtue of having merely undergone--
 (A) simple combining or packaging operations, or
 (B) mere dilution with water or mere dilution with another substance that
 does not materially alter the characteristics of the article.
 (3) As used in this subsection, the phrase `direct costs of processing
 operations' includes, but is not limited to--
 (A) all actual labor costs involved in the growth, production, manufacture, or
 assembly of the specific merchandise, including fringe benefits, on-the-job
 training and the cost of engineering, supervisory, quality control, and
 similar personnel; and
 (B) dies, molds, tooling, and depreciation on machinery and equipment which
 are allocable to the specific merchandise.
Such phrase does not include costs which are not directly attributable to
the merchandise concerned or are not costs of manufacturing the product,
such as (i) profit, and (ii) general expense of doing business which are
either not allocable to the specific merchandise or are not related to the
growth, production, manufacture, or assembly of the merchandise, such as
administrative salaries, casualty and liability insurance, advertising,
interest, and salesmen's salaries, commissions or expenses.
 (4) If the President, pursuant to section 223 of the Caribbean Basin Economic
 Recovery Expansion Act of 1990, considers that the implementation of revised
 rules of origin for products of beneficiary countries designated under the
 Caribbean Basin Economic Recovery Act (19 U.S.C. 2701 et seq.) would be
 appropriate, the President may include similarly revised rules of origin
 for products of beneficiary countries designated under this title in any
 suggested legislation transmitted to the Congress that contains such rules
 of origin for products of beneficiary countries under the Caribbean Basin
 Economic Recovery Act.
 (b) EXCEPTIONS TO DUTY-FREE TREATMENT- The duty-free treatment provided
 under this title shall not apply to--
 (1) textile and apparel articles which are subject to textile agreements;
 (2) footwear not designated at the time of the effective date of this Act
 as eligible for the purpose of the generalized system of preferences under
 title V of the Trade Act of 1974;
 (3) tuna, prepared or preserved in any manner, in airtight containers;
 (4) petroleum, or any product derived from petroleum, provided for in
 headings 2709 and 2710 of the HTS;
 (5) watches and watch parts (including cases, bracelets and straps), of
 whatever type including, but not limited to, mechanical, quartz digital or
 quartz analog, if such watches or watch parts contain any material which
 is the product of any country with respect to which HTS column 2 rates of
 duty apply;
 (6) articles to which reduced rates of duty apply under subsection (c);
 (7) sugars, syrups, and molasses classified in subheadings 1701.11.03,
 1701.12.02, 1701.99.02, 1702.90.32, 1806.10.42, and 2106.90.12 of the HTS; or
 (8) rum and tafia classified in subheading 2208.40.00 of the HTS.
 (c) DUTY REDUCTIONS FOR CERTAIN GOODS- (1) Subject to paragraph (2),
 the President shall proclaim reductions in the rates of duty on handbags,
 luggage, flat goods, work gloves, and leather wearing apparel that--
 (A) are the product of any beneficiary country; and
 (B) were not designated on August 5, 1983, as eligible articles for purposes
 of the generalized system of preferences under title V of the Trade Act
 of 1974.
 (2) The reduction required under paragraph (1) in the rate of duty on any
 article shall--
 (A) result in a rate that is equal to 80 percent of the rate of duty that
 applies to the article on December 31, 1991, except that, subject to the
 limitations in paragraph (3), the reduction may not exceed 2.5 percent ad
 valorem; and
 (B) be implemented in 5 equal annual stages with the first  1/5  of the
 aggregate reduction in the rate of duty being applied to entries, or
 withdrawals from warehouse for consumption, of the article on or after
 January 1, 1992.
 (3) The reduction required under this subsection with respect to the rate
 of duty on any article is in addition to any reduction in the rate of duty
 on that article that may be proclaimed by the President as being required or
 appropriate to carry out any trade agreement entered into under the Uruguay
 Round of trade negotiations; except that if the reduction so proclaimed--
 (A) is less than 1.5 percent ad valorem, the aggregate of such proclaimed
 reduction and the reduction under this subsection may not exceed 3.5 percent
 ad valorem, or
 (B) is 1.5 percent ad valorem or greater, the aggregate of such proclaimed
 reduction and the reduction under this subsection may not exceed the
 proclaimed reduction plus 1 percent ad valorem.
 (d) SUSPENSION OF DUTY-FREE TREATMENT- (1) The President may by proclamation
 suspend the duty-free treatment provided by this title with respect to
 any eligible article and may proclaim a duty rate for such article if such
 action is proclaimed under chapter 1 of title II of the Trade Act of 1974
 or section 232 of the Trade Expansion Act of 1962.
 (2) In any report by the United States International Trade Commission to
 the President under section 202(f) of the Trade Act of 1974 regarding any
 article for which duty-free treatment has been proclaimed by the President
 pursuant to this title, the Commission shall state whether and to what extent
 its findings and recommendations apply to such article when imported from
 beneficiary countries.
 (3) For purposes of section 203 of the Trade Act of 1974, the suspension
 of the duty-free treatment provided by this title shall be treated as an
 increase in duty.
 (4) No proclamation providing solely for a suspension referred to in paragraph
 (3) of this subsection with respect to any article shall be taken under
 section 203 of the Trade Act of 1974 unless the United States International
 Trade Commission, in addition to making an affirmative determination with
 respect to such article under section 202(b) of the Trade Act of 1974,
 determines in the course of its investigation under such section that the
 serious injury (or threat thereof) substantially caused by imports to the
 domestic industry producing a like or directly competitive article results
 from the duty-free treatment provided by this title.
 (5)(A) Any action taken under section 203 of the Trade Act of 1974 that is
 in effect when duty-free treatment is proclaimed under section 202 of this
 title shall remain in effect until modified or terminated.
 (B) If any article is subject to any such action at the time duty-free
 treatment is proclaimed under section 202 of this title, the President may
 reduce or terminate the application of such action to the importation of
 such article from beneficiary countries prior to the otherwise scheduled
 date on which such reduction or termination would occur pursuant to the
 criteria and procedures of section 204 of the Trade Act of 1974.
 (e) EMERGENCY RELIEF WITH RESPECT TO PERISHABLE PRODUCTS- (1) If a petition
 is filed with the United States International Trade Commission pursuant to
 the provisions of section 201 of the Trade Act of 1974 regarding a perishable
 product and alleging injury from imports from beneficiary countries, then
 the petition may also be filed with the Secretary of Agriculture with a
 request that emergency relief be granted pursuant to paragraph (3) of this
 subsection with respect to such article.
 (2) Within 14 days after the filing of a petition under paragraph (1)
 of this subsection --
 (A) if the Secretary of Agriculture has reason to believe that a perishable
 product from a beneficiary country is being imported into the United States
 in such increased quantities as to be a substantial cause of serious injury,
 or the threat thereof, to the domestic industry producing a perishable
 product like or directly competitive with the imported product and that
 emergency action is warranted, he shall advise the President and recommend
 that the President take emergency action; or
 (B) the Secretary of Agriculture shall publish a notice of his determination
 not to recommend the imposition of emergency action and so advise the
 petitioner.
 (3) Within 7 days after the President receives a recommendation from the
 Secretary of Agriculture to take emergency action pursuant to paragraph (2)
 of this subsection, he shall issue a proclamation withdrawing the duty-free
 treatment provided by this title or publish a notice of his determination
 not to take emergency action.
 (4) The emergency action provided by paragraph (3) of this subsection shall
 cease to apply--
 (A) upon the taking of action under section 203 of the Trade Act of 1974,
 (B) on the day a determination by the President not to take action under
 section 203(b)(2) of such Act becomes final,
 (C) in the event of a report of the United States International Trade
 Commission containing a negative finding, on the day of the Commission's
 report is submitted to the President, or
 (D) whenever the President determines that because of changed circumstances
 such relief is no longer warranted.
 (5) For purposes of this subsection, the term `perishable product' means--
 (A) live plants and fresh cut flowers provided for in chapter 6 of the HTS;
 (B) fresh or chilled vegetables provided for in headings 0701 through 0709
 (except subheading 0709.52.00) and heading 0714 of the HTS;
 (C) fresh fruit provided for in subheadings 0804.20 through 0810.90 (except
 citrons of subheadings 0805.90.00, tamarinds and kiwi fruit of subheading
 0810.90.20, and cashew apples, mameyes colorados, sapodillas, soursops and
 sweetsops of subheading 0810.90.40) of the HTS; or
 (D) concentrated citrus fruit juice provided for in subheadings 2009.11.00,
 2009.19.40, 2009.20.40, 2009.30.20, and 2009.30.60 of the HTS.
 (f) SECTION 22 FEES- No proclamation issued pursuant to this title shall
 affect fees imposed pursuant to section 22 of the Agricultural Adjustment
 Act of 1933 (7 U.S.C. 624).
SEC. 205. RELATED AMENDMENTS.
 (a) INCREASE IN DUTY-FREE TOURIST ALLOWANCE- Note 4 to subchapter IV of
 chapter 98 of the HTS is amended by inserting before the period the following:
 `or a country designated as a beneficiary country under the Andean Trade
 Preference Act'.
 (b) TREATMENT OF INSULAR POSSESSIONS PRODUCTS- General Note 3(a)(iv) of the
 HTS (relating to products of the insular possessions) is amended by adding
 at the end thereof the following:
 `(E) Subject to the provisions in section 204 of the Andean Trade Preference
 Act, goods which are imported from insular possessions of the United States
 shall receive duty treatment no less favorable than the treatment afforded
 such goods when they are imported from a beneficiary country under such Act.'.
SEC. 206. INTERNATIONAL TRADE COMMISSION REPORTS ON IMPACT OF THE ANDEAN
TRADE PREFERENCE ACT.
 (a) IN GENERAL- The United States International Trade Commission (hereinafter
 in this section referred to as the `Commission') shall prepare, and submit to
 the Congress, a report regarding the economic impact of this title on United
 States industries and consumers, and, in conjunction with other agencies,
 the effectiveness of this title in promoting drug-related crop eradication
 and crop substitution efforts of the beneficiary countries, during--
 (1) the 24-month period beginning with the date of enactment of this
 title; and
 (2) each calendar year occurring thereafter until duty-free treatment under
 this title is terminated under section 208(b).
For purposes of this section, industries in the Commonwealth of Puerto Rico
and the insular possessions of the United States shall be considered to be
United States industries.
 (b) REPORT REQUIREMENTS- (1) Each report required under subsection (a) shall
 include, but not be limited to, an assessment by the Commission regarding--
 (A) the actual effect, during the period covered by the report, of this title
 on the United States economy generally as well as on those specific domestic
 industries which produce articles that are like, or directly competitive with,
 articles being imported into the United States from beneficiary countries;
 (B) the probable future effect that this title will have on the United
 States economy generally, as well as on such domestic industries, before
 the provisions of this title terminate; and
 (C) the estimated effect that this title has had on the drug-related crop
 eradication and crop substitution efforts of the beneficiary countries.
 (2) In preparing the assessments required under paragraph (1), the Commission
 shall, to the extent practicable--
 (A) analyze the production, trade and consumption of United States products
 affected by this title, taking into consideration employment, profit levels,
 and use of productive facilities with respect to the domestic industries
 concerned, and such other economic factors in such industries as it considers
 relevant, including prices, wages, sales, inventories, patterns of demand,
 capital investment, obsolescence of equipment, and diversification of
 production; and
 (B) describe the nature and extent of any significant change in employment,
 profit levels, and use of productive facilities, and such other conditions
 as it deems relevant in the domestic industries concerned, which it believes
 are attributable to this title.
 (c) SUBMISSION DATES; PUBLIC COMMENT- (1) Each report required under
 subsection (a) shall be submitted to the Congress before the close of the
 9-month period beginning on the day after the last day of the period covered
 by the report.
 (2) The Commission shall provide an opportunity for the submission by the
 public, either orally or in writing, or both, of information relating to
 matters that will be addressed in the reports.
SEC. 207. IMPACT STUDY BY SECRETARY OF LABOR.
 The Secretary of Labor, in consultation with other appropriate Federal
 agencies, shall undertake a continuing review and analysis of the impact
 that the implementation of the provisions of this title has with respect
 to United States labor; and shall make an annual written report to Congress
 on the results of such review and analysis.
SEC. 208. EFFECTIVE DATE AND TERMINATION OF DUTY-FREE TREATMENT.
 (a) EFFECTIVE DATE- This title shall take effect on the date of enactment.
 (b) TERMINATION OF DUTY-FREE TREATMENT- No duty-free treatment extended
 to beneficiary countries under this title shall remain in effect 10 years
 after the date of the enactment of this title.
TITLE III--CONTROL AND ELIMINATION OF CHEMICAL AND BIOLOGICAL WEAPONS
SEC. 301. SHORT TITLE.
 This title may be cited as the `Chemical and Biological Weapons Control
 and Warfare Elimination Act of 1991'.
SEC. 302. PURPOSES.
 The purposes of this title are--
 (1) to mandate United States sanctions, and to encourage international
 sanctions, against countries that use chemical or biological weapons in
 violation of international law or use lethal chemical or biological weapons
 against their own nationals, and to impose sanctions against companies that
 aid in the proliferation of chemical and biological weapons;
 (2) to support multilaterally coordinated efforts to control the proliferation
 of chemical and biological weapons;
 (3) to urge continued close cooperation with the Australia Group and
 cooperation with other supplier nations to devise ever more effective
 controls on the transfer of materials, equipment, and technology applicable
 to chemical or biological weapons production; and
 (4) to require Presidential reports on efforts that threaten United States
 interests or regional stability by Iran, Iraq, Syria, Libya, and others
 to acquire the materials and technology to develop, produce, stockpile,
 deliver, transfer, or use chemical or biological weapons.
SEC. 303. MULTILATERAL EFFORTS.
 (a) MULTILATERAL CONTROLS ON PROLIFERATION- It is the policy of the United
 States to seek multilaterally coordinated efforts with other countries to
 control the proliferation of chemical and biological weapons. In furtherance
 of this policy, the United States shall--
 (1) promote agreements banning the transfer of missiles suitable for armament
 with chemical or biological warheads;
 (2) set as a top priority the early conclusion of a comprehensive global
 agreement banning the use, development, production, and stockpiling of
 chemical weapons;
 (3) seek and support effective international means of monitoring and reporting
 regularly on commerce in equipment, materials, and technology applicable
 to the attainment of a chemical or biological weapons capability; and
 (4) pursue and give full support to multilateral sanctions pursuant to United
 Nations Security Council Resolution 620, which declared the intention of the
 Security Council to give immediate consideration to imposing `appropriate
 and effective' sanctions against any country which uses chemical weapons
 in violation of international law.
 (b) MULTILATERAL CONTROLS ON CHEMICAL AGENTS, PRECURSORS, AND EQUIPMENT- It
 is also the policy of the United States to strengthen efforts to control
 chemical agents, precursors, and equipment by taking all appropriate
 multilateral diplomatic measures--
 (1) to continue to seek a verifiable global ban on chemical weapons at the
 40 nation Conference on Disarmament in Geneva;
 (2) to support the Australia Group's objective to support the norms and
 restraints against the spread and the use of chemical warfare, to advance the
 negotiation of a comprehensive ban on chemical warfare by taking appropriate
 measures, and to protect the Australia Group's domestic industries against
 inadvertent association with supply of feedstock chemical equipment that
 could be misused to produce chemical weapons;
 (3) to implement paragraph (2) by proposing steps complementary to, and not
 mutually exclusive of, existing multilateral efforts seeking a verifiable
 ban on chemical weapons, such as the establishment of--
 (A) a harmonized list of export control rules and regulations to prevent
 relative commercial advantage and disadvantages accruing to Australia
 Group members,
 (B) liaison officers to the Australia Group's coordinating entity from
 within the diplomatic missions,
 (C) a close working relationship between the Australia Group and industry,
 (D) a public unclassified warning list of controlled chemical agents,
 precursors, and equipment,
 (E) information-exchange channels of suspected proliferants,
 (F) a `denial' list of firms and individuals who violate the Australia
 Group's export control provisions, and
 (G) broader cooperation between the Australia Group and other countries
 whose political commitment to stem the proliferation of chemical weapons
 is similar to that of the Australia Group; and
 (4) to adopt the imposition of stricter controls on the export of chemical
 agents, precursors, and equipment and to adopt tougher multilateral sanctions
 against firms and individuals who violate these controls or against countries
 that use chemical weapons.
SEC. 304. UNITED STATES EXPORT CONTROLS.
 (a) IN GENERAL- The President shall--
 (1) use the authorities of the Arms Export Control Act to control the export
 of those defense articles and defense services, and
 (2) use the authorities of the Export Administration Act of 1979 to control
 the export of those goods and technology,
that the President determines would assist the government of any foreign
country in acquiring the capability to develop, produce, stockpile, deliver,
or use chemical or biological weapons.
 (b) EXPORT ADMINISTRATION ACT- Section 6 of the Export Administration Act
 of 1979 (50 U.S.C. App. 2405) is amended--
 (1) by redesignating subsections (m) through (r) as subsections (n) through
 (s), respectively; and
 (2) by inserting after subsection (l) the following:
 `(m) CHEMICAL AND BIOLOGICAL WEAPONS-
 `(1) ESTABLISHMENT OF LIST- The Secretary, in consultation with the Secretary
 of State, the Secretary of Defense, and the heads of other appropriate
 departments and agencies, shall establish and maintain, as part of the
 list maintained under this section, a list of goods and technology that
 would directly and substantially assist a foreign government or group in
 acquiring the capability to develop, produce, stockpile, or deliver chemical
 or biological weapons, the licensing of which would be effective in barring
 acquisition or enhancement of such capability.
 `(2) REQUIREMENT FOR VALIDATED LICENSES- The Secretary shall require
 a validated license for any export of goods or technology on the list
 established under paragraph (1) to any country of concern.
 `(3) COUNTRIES OF CONCERN- For purposes of paragraph (2), the term `country
 of concern' means any country other than--
 `(A) a country with whose government the United States has entered into a
 bilateral or multilateral arrangement for the control of goods or technology
 on the list established under paragraph (1); and
 `(B) such other countries as the Secretary of State, in consultation with
 the Secretary and the Secretary of Defense, shall designate consistent with
 the purposes of the Chemical and Biological Weapons Control and Warfare
 Elimination Act of 1991.'.
SEC. 305. SANCTIONS AGAINST CERTAIN FOREIGN PERSONS.
 (a) AMENDMENT TO EXPORT ADMINISTRATION ACT- The Export Administration Act
 of 1979 is amended by inserting after section 11B the following:
`CHEMICAL AND BIOLOGICAL WEAPONS PROLIFERATION SANCTIONS
 `SEC. 11C. (a) IMPOSITION OF SANCTIONS-
 `(1) DETERMINATION BY THE PRESIDENT- Except as provided in subsection (b)(2),
 the President shall impose both of the sanctions described in subsection
 (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 subject to the jurisdiction of the United States under this Act, or
 `(B) through the export from any other country of any goods or technology
 that would be, if they were United States goods or technology, subject to
 the jurisdiction of the United States under this Act,
to the efforts by any foreign country, project, or entity described in
paragraph (2) to use, develop, produce, stockpile, or otherwise acquire
chemical or biological weapons.
 `(2) COUNTRIES, PROJECTS, OR ENTITIES RECEIVING 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 weapons 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 for purposes of
 section 6(j) of this Act to be a government that has repeatedly provided
 support for acts of international terrorism; or
 `(C) any other foreign country, project, or entity designated by the
 President for purposes of this section.
 `(3) PERSONS AGAINST WHICH SANCTIONS ARE TO BE IMPOSED- Sanctions shall be
 imposed pursuant 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 controlled in fact by that
 foreign person.
 `(b) CONSULTATIONS WITH AND ACTIONS BY FOREIGN GOVERNMENT OF JURISDICTION-
 `(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 JURISDICTION- 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
 President determines and certifies to the Congress that that government has
 taken specific and effective actions, including appropriate penalties, to
 terminate the involvement of the foreign person in the activities described
 in subsection (a)(1). The President may delay imposition of sanctions
 for an additional period of up to 90 days if the President determines and
 certifies to the Congress that that government is in the process of taking
 the actions described in the preceding sentence.
 `(3) REPORT TO CONGRESS- The President shall report to the Congress, not
 later than 90 days after making a determination under subsection (a)(1),
 on the status of consultations with the appropriate government under this
 subsection, and the basis for any determination under paragraph (2) of this
 subsection that such government has taken specific corrective actions.
 `(c) SANCTIONS-
 `(1) DESCRIPTION OF SANCTIONS- The sanctions to be imposed pursuant to
 subsection (a)(1) are, except as provided in paragraph (2) of this subsection,
 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--
 `(i) under existing contracts or subcontracts, 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 services, that the defense articles or 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 coproduction 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
 products or production, or
 `(iii) routine servicing and maintenance of products, to the extent that
 alternative sources are not readily or reasonably available;
 `(D) to information and technology essential 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 information 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 biological 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
 Congress that such waiver is important to the national security interests
 of the United States.
 `(2) NOTIFICATION OF AND REPORT TO CONGRESS- 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 notification shall include a report fully articulating the
 rationale and circumstances which led the President to exercise the waiver
 authority.
 `(f) DEFINITION OF FOREIGN PERSON- For the purposes 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.'.
 (b) AMENDMENT TO ARMS EXPORT CONTROL ACT- The Arms Export Control Act is
 amended by inserting after chapter 7 the following:
`CHAPTER 8--CHEMICAL OR BIOLOGICAL WEAPONS PROLIFERATION
`SEC. 81. SANCTIONS AGAINST CERTAIN FOREIGN PERSONS.
 `(a) IMPOSITION OF SANCTIONS-
 `(1) DETERMINATION BY THE PRESIDENT- Except as provided in subsection (b)(2),
 the President shall impose both of the sanctions described in subsection
 (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 subject 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 technology, subject to
 the jurisdiction of the United States, or
 `(C) through any other transaction not subject to sanctions pursuant to
 the Export Administration Act of 1979,
to the efforts by any foreign country, project, or entity described in
paragraph (2) to use, develop, produce, stockpile, or otherwise acquire
chemical or biological weapons.
 `(2) COUNTRIES, PROJECTS, OR ENTITIES RECEIVING 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 weapons 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 for purposes of
 section 6(j) of the Export Administration Act of 1979 (50 U.S.C. 2405(j)) to
 be a government that has repeatedly provided support for acts of international
 terrorism; 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 pursuant 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 controlled in fact by that
 foreign person.
 `(b) CONSULTATIONS WITH AND ACTIONS BY FOREIGN GOVERNMENT OF JURISDICTION-
 `(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 JURISDICTION- 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
 President determines and certifies to the Congress that that government has
 taken specific and effective actions, including appropriate penalties, to
 terminate the involvement of the foreign person in the activities described
 in subsection (a)(1). The President may delay imposition of sanctions
 for an additional period of up to 90 days if the President determines and
 certifies to the Congress that that government is in the process of taking
 the actions described in the preceding sentence.
 `(3) REPORT TO CONGRESS- The President shall report to the Congress, not
 later than 90 days after making a determination under subsection (a)(1),
 on the status of consultations with the appropriate government under this
 subsection, and the basis for any determination under paragraph (2) of this
 subsection that such government has taken specific corrective actions.
 `(c) SANCTIONS-
 `(1) DESCRIPTION OF SANCTIONS- The sanctions to be imposed pursuant to
 subsection (a)(1) are, except as provided in paragraph (2) of this subsection,
 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--
 `(i) under existing contracts or subcontracts, 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 services, that the defense articles or 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 coproduction 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
 products or production, or
 `(iii) routine servicing and maintenance of products, to the extent that
 alternative sources are not readily or reasonably available;
 `(D) to information and technology essential 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 information 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 biological 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
 Congress that such waiver is important to the national security interests
 of the United States.
 `(2) NOTIFICATION OF AND REPORT TO CONGRESS- 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 notification shall include a report fully articulating the
 rationale and circumstances which led the President to exercise the waiver
 authority.
 `(f) DEFINITION OF FOREIGN PERSON- For the purposes 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.'.
SEC. 306. DETERMINATIONS REGARDING USE OF CHEMICAL OR BIOLOGICAL WEAPONS.
 (a) DETERMINATION BY THE PRESIDENT-
 (1) WHEN DETERMINATION REQUIRED; NATURE OF DETERMINATION- Whenever persuasive
 information becomes available to the executive branch indicating the
 substantial possibility that, on or after the date of the enactment of this
 title, the government of a foreign country has made substantial preparation
 to use or has used chemical or biological weapons, the President shall,
 within 60 days after the receipt of such information by the executive branch,
 determine whether that government, on or after such date of enactment, has
 used chemical or biological weapons in violation of international law or has
 used lethal chemical or biological weapons against its own nationals. Section
 307 applies if the President determines that that government has so used
 chemical or biological weapons.
 (2) MATTERS TO BE CONSIDERED- In making the determination under paragraph
 (1), the President shall consider the following:
 (A) All physical and circumstantial evidence available bearing on the
 possible use of such weapons.
 (B) All information provided by alleged victims, witnesses, and independent
 observers.
 (C) The extent of the availability of the weapons in question to the
 purported user.
 (D) All official and unofficial statements bearing on the possible use of
 such weapons.
 (E) Whether, and to what extent, the government in question is willing to
 honor a request from the Secretary General of the United Nations to grant
 timely access to a United Nations fact-finding team to investigate the
 possibility of chemical or biological weapons use or to grant such access
 to other legitimate outside parties.
 (3) DETERMINATION TO BE REPORTED TO CONGRESS- Upon making a determination
 under paragraph (1), the President shall promptly report that determination
 to the Congress. If the determination is that a foreign government had used
 chemical or biological weapons as described in that paragraph, the report
 shall specify the sanctions to be imposed pursuant to section 307.
 (b) CONGRESSIONAL REQUESTS; REPORT-
 (1) REQUEST- The Chairman of the Committee on Foreign Relations of the Senate
 (upon consultation with the ranking minority member of such committee) or the
 Chairman of the Committee on Foreign Affairs of the House of Representatives
 (upon consultation with the ranking minority member of such committee)
 may at any time request the President to consider whether a particular
 foreign government, on or after the date of the enactment of this title,
 has used chemical or biological weapons in violation of international law
 or has used lethal chemical or biological weapons against its own nationals.
 (2) REPORT TO CONGRESS- Not later than 60 days after receiving such a
 request, the President shall provide to the Chairman of the Committee on
 Foreign Relations of the Senate and the Chairman of the Committee on Foreign
 Affairs of the House of Representatives a written report on the information
 held by the executive branch which is pertinent to the issue of whether the
 specified government, on or after the date of the enactment of this title,
 has used chemical or biological weapons in violation of international law or
 has used lethal chemical or biological weapons against its own nationals. This
 report shall contain an analysis of each of the items enumerated in subsection
 (a)(2).
SEC. 307. SANCTIONS AGAINST USE OF CHEMICAL OR BIOLOGICAL WEAPONS.
 (a) INITIAL SANCTIONS- If, at any time, the President makes a determination
 pursuant to section 306(a)(1) with respect to the government of a foreign
 country, the President shall forthwith impose the following sanctions:
 (1) FOREIGN ASSISTANCE- The United States Government shall terminate
 assistance to that country under the Foreign Assistance Act of 1961,
 except for urgent humanitarian assistance and food or other agricultural
 commodities or products.
 (2) ARMS SALES- The United States Government shall terminate--
 (A) sales to that country under the Arms Export Control Act of any defense
 articles, defense services, or design and construction services, and
 (B) licenses for the export to that country of any item on the United States
 Munitions List.
 (3) ARMS SALES FINANCING- The United States Government shall terminate all
 foreign military financing for that country under the Arms Export Control Act.
 (4) DENIAL OF UNITED STATES GOVERNMENT CREDIT OR OTHER FINANCIAL ASSISTANCE-
 The United States Government shall deny to that country any credit, credit
 guarantees, or other financial assistance by any department, agency, or
 instrumentality of the United States Government, including the Export-Import
 Bank of the United States.
 (5) EXPORTS OF NATIONAL SECURITY-SENSITIVE GOODS AND TECHNOLOGY- The
 authorities of section 6 of the Export Administration Act of 1979 (50
 U.S.C. 2405) shall be used to prohibit the export to that country of any
 goods or technology on that part of the control list established under
 section 5(c)(1) of that Act (22 U.S.C. 2404(c)(1)).
 (b) ADDITIONAL SANCTIONS IF CERTAIN CONDITIONS NOT MET-
 (1) PRESIDENTIAL DETERMINATION- Unless, within 3 months after making a
 determination pursuant to section 306(a)(1) with respect to a foreign
 government, the President determines and certifies in writing to the
 Congress that--
 (A) that government is no longer using chemical or biological weapons
 in violation of international law or using lethal chemical or biological
 weapons against its own nationals,
 (B) that government has provided reliable assurances that it will not in
 the future engage in any such activities, and
 (C) that government is willing to allow on-site inspections by United Nations
 observers or other internationally recognized, impartial observers, or other
 reliable means exist, to ensure that that government is not using chemical
 or biological weapons in violation of international law and is not using
 lethal chemical or biological weapons against its own nationals,
then the President, after consultation with the Congress, shall impose on
that country the sanctions set forth in at least 3 of subparagraphs (A)
through (F) of paragraph (2).
 (2) SANCTIONS- The sanctions referred to in paragraph (1) are the following:
 (A) MULTILATERAL DEVELOPMENT BANK ASSISTANCE- The United States Government
 shall oppose, in accordance with section 701 of the International Financial
 Institutions Act (22 U.S.C. 262d), the extension of any loan or financial or
 technical assistance to that country by international financial institutions.
 (B) BANK LOANS- The United States Government shall prohibit any United
 States bank from making any loan or providing any credit to the government
 of that country, except for loans or credits for the purpose of purchasing
 food or other agricultural commodities or products.
 (C) FURTHER EXPORT RESTRICTIONS- The authorities of section 6 of the Export
 Administration Act of 1979 shall be used to prohibit exports to that country
 of all other goods and technology (excluding food and other agricultural
 commodities and products).
 (D) IMPORT RESTRICTIONS- Restrictions shall be imposed on the importation into
 the United States of articles (which may include petroleum or any petroleum
 product) that are the growth, product, or manufacture of that country.
 (E) DIPLOMATIC RELATIONS- The President shall use his constitutional
 authorities to downgrade or suspend diplomatic relations between the United
 States and the government of that country.
 (F) PRESIDENTIAL ACTION REGARDING AVIATION- (i)(I) The President is authorized
 to notify the government of a country with respect to which the President
 has made a determination pursuant to section 306(a)(1) of his intention to
 suspend the authority of foreign air carriers owned or controlled by the
 government of that country to engage in foreign air transportation to or
 from the United States.
 (II) Within 10 days after the date of notification of a government under
 subclause (I), the Secretary of Transportation shall take all steps necessary
 to suspend at the earliest possible date the authority of any foreign air
 carrier owned or controlled, directly or indirectly, by that government
 to engage in foreign air transportation to or from the United States,
 notwithstanding any agreement relating to air services.
 (ii)(I) The President may direct the Secretary of State to terminate any air
 service agreement between the United States and a country with respect to
 which the President has made a determination pursuant to section 306(a)(1),
 in accordance with the provisions of that agreement.
 (II) Upon termination of an agreement under this clause, the Secretary
 of Transportation shall take such steps as may be necessary to revoke at
 the earliest possible date the right of any foreign air carrier owned,
 or controlled, directly or indirectly, by the government of that country
 to engage in foreign air transportation to or from the United States.
 (iii) The Secretary of Transportation may provide for such exceptions from
 clauses (i) and (ii) as the Secretary considers necessary to provide for
 emergencies in which the safety of an aircraft or its crew or passengers
 is threatened.
 (iv) For purposes of this subparagraph, the terms `air transportation',
 `air carrier', `foreign air carrier', and `foreign air transportation' have
 the meanings such terms have under section 101 of the Federal Aviation Act
 of 1958 (49 U.S.C. App. 1301).
 (c) REMOVAL OF SANCTIONS- The President shall remove the sanctions imposed
 with respect to a country pursuant to this section if the President
 determines and so certifies to the Congress, after the end of the 12-month
 period beginning on the date on which sanctions were initially imposed on
 that country pursuant to subsection (a), that--
 (1) the government of that country has provided reliable assurances that it
 will not use chemical or biological weapons in violation of international
 law and will not use lethal chemical or biological weapons against its
 own nationals;
 (2) that government is not making preparations to use chemical or biological
 weapons in violation of international law or to use lethal chemical or
 biological weapons against its own nationals;
 (3) that government is willing to allow on-site inspections by United Nations
 observers or other internationally recognized, impartial observers to verify
 that it is not making preparations to use chemical or biological weapons
 in violation of international law or to use lethal chemical or biological
 weapons against its own nationals, or other reliable means exist to verify
 that it is not making such preparations; and
 (4) that government is making restitution to those affected by any use of
 chemical or biological weapons in violation of international law or by any
 use of lethal chemical or biological weapons against its own nationals.
 (d) WAIVER-
 (1) CRITERIA FOR WAIVER- The President may waive the application of any
 sanction imposed with respect to a country pursuant to this section--
 (A) if--
 (i) in the case of any sanction other than a sanction specified in subsection
 (b)(2)(D) (relating to import restrictions) or (b)(2)(E) (relating to
 the downgrading or suspension of diplomatic relations), the President
 determines and certifies to the Congress that such waiver is essential to
 the national security interests of the United States, and if the President
 notifies the Committee on Foreign Relations of the Senate and the Committee
 on Foreign Affairs of the House of Representatives of his determination and
 certification at least 15 days before the waiver takes effect, in accordance
 with the procedures applicable to reprogramming notifications under section
 634A of the Foreign Assistance Act of 1961, or
 (ii) in the case of any sanction specified in subsection (b)(2)(D)
 (relating to import restrictions), the President determines and certifies
 to the Congress that such waiver is essential to the national security
 interest of the United States, and if the President notifies the Committee
 on Finance of the Senate and the Committee on Ways and Means of the House
 of Representatives of his determination and certification at least 15 days
 before the waiver takes effect; or
 (B) if the President determines and certifies to the Congress that there has
 been a fundamental change in the leadership and policies of the government
 of that country, and if the President notifies the Congress at least 20
 days before the waiver takes effect.
 (2) REPORT- In the event that the President decides to exercise the waiver
 authority provided in paragraph (1) with respect to a country, the President's
 notification to the Congress under such paragraph shall include a report
 fully articulating the rationale and circumstances which led the President
 to exercise that waiver authority, including a description of the steps
 which the government of that country has taken to satisfy the conditions
 set forth in paragraphs (1) through (4) of subsection (c).
 (e) CONTRACT SANCTITY-
 (1) SANCTIONS NOT APPLIED TO EXISTING CONTRACTS- (A) A sanction described
 in paragraph (4) or (5) of subsection (a) or in any of subparagraphs (A)
 through (D) of subsection (b)(2) shall not apply to any activity pursuant
 to any contract or international agreement entered into before the date of
 the presidential determination under section 306(a)(1) unless the President
 determines, on a case-by-case basis, that to apply such sanction to that
 activity would prevent the performance of a contract or agreement that would
 have the effect of assisting a country in using chemical or biological
 weapons in violation of international law or in using lethal chemical or
 biological weapons against its own nationals.
 (B) The same restrictions of subsection (p) of section 6 of the Export
 Administration Act of 1979 (50 U.S.C. App. 2405), as that subsection is so
 redesignated by section 304(b) of this title, which are applicable to exports
 prohibited under section 6 of that Act shall apply to exports prohibited
 under subsection (a)(5) or (b)(2)(C) of this section. For purposes of
 this subparagraph, any contract or agreement the performance of which
 (as determined by the President) would have the effect of assisting a
 foreign government in using chemical or biological weapons in violation of
 international law or in using lethal chemical or biological weapons against
 its own nationals shall be treated as constituting a breach of the peace that
 poses a serious and direct threat to the strategic interest of the United
 States, within the meaning of subparagraph (A) of section 6(p) of that Act.
 (2) SANCTIONS APPLIED TO EXISTING CONTRACTS- The sanctions described in
 paragraphs (1), (2), and (3) of subsection (a) shall apply to contracts,
 agreements, and licenses without regard to the date the contract or agreement
 was entered into or the license was issued (as the case may be), except that
 such sanctions shall not apply to any contract or agreement entered into or
 license issued before the date of the presidential determination under section
 306(a)(1) if the President determines that the application of such sanction
 would be detrimental to the national security interests of the United States.
SEC. 308. PRESIDENTIAL REPORTING REQUIREMENTS.
 (a) REPORTS TO CONGRESS- Not later than 90 days after the date of the
 enactment of this title, and every 12 months thereafter, the President
 shall transmit to the Congress a report which shall include--
 (1) a description of the actions taken to carry out this title, including
 the amendments made by this title;
 (2) a description of the current efforts of foreign countries and subnational
 groups to acquire equipment, materials, or technology to develop, produce,
 or use chemical or biological weapons, together with an assessment of the
 current and likely future capabilities of such countries and groups to
 develop, produce, stockpile, deliver, transfer, or use such weapons;
 (3) a description of--
 (A) the use of chemical weapons by foreign countries in violation of
 international law,
 (B) the use of chemical weapons by subnational groups,
 (C) substantial preparations by foreign countries and subnational groups
 to do so, and
 (D) the development, production, stockpiling, or use of biological weapons
 by foreign countries and subnational groups; and
 (4) a description of the extent to which foreign persons or governments have
 knowingly and materially assisted third countries or subnational groups to
 acquire equipment, material, or technology intended to develop, produce,
 or use chemical or biological weapons.
 (b) PROTECTION OF CLASSIFIED INFORMATION- To the extent practicable, reports
 submitted under subsection (a) or any other provision of this title should be
 based on unclassified information. Portions of such reports may be classified.
SEC. 309. REPEAL OF DUPLICATIVE PROVISIONS.
 (a) REPEAL- Title V of the Foreign Relations Authorization Act, Fiscal Years
 1992 and 1993 (Public Law 102-138), and the amendments made by that title,
 are repealed.
 (b) REFERENCES TO DATE OF ENACTMENT- The reference--
 (1) in section 11C(a)(1) of the Export Administration Act of 1979, as added
 by section 305(a) of this Act, to the `date of the enactment of this section',
 (2) in section 81(a)(1) of the Arms Export Control Act, as added by section
 305(b) of this Act, to the `date of the enactment of this section', and
 (3) in section 306(a)(1) of this Act to the `date of the enactment of
 this title',
shall be deemed to refer to the date of the enactment of the Foreign Relations
Authorization Act, Fiscal Years 1992 and 1993 (Public Law 102-138).
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.