USC Subchapter VII

in effect

22 U.S.C. § 2797 Licensing

(a) Establishment of list of controlled itemsThe Secretary of State, in consultation with the Secretary of Defense and the heads of other appropriate departments and agencies, shall establish and maintain, as part of the United States Munitions List, a list of all items on the MTCR Annex the export of which is not controlled under section 4605(l) 11 See References in Text note below. of title 50. (b) Referral of license applications(1) A determination of the Secretary of State to approve a license for the export of an item on the list established under subsection (a) may be made only after the license application is referred to the Secretary of Defense. (2) Within 10 days after a license is issued for the export of an item on the list established under subsection (a), the Secretary of State shall provide to the Secretary of Defense and the Secretary of Commerce the license application and accompanying documents issued to the applicant, to the extent that the relevant Secretary indicates the need to receive such application and documents. (c) Information sharingThe Secretary of State shall establish a procedure for sharing information with appropriate officials of the intelligence community, as determined by the Director of Central Intelligence, and with other appropriate Government agencies, that will ensure effective monitoring of transfers of MTCR equipment or technology and other missile technology. (d) Exports to space launch vehicle programsWithin 15 days after the issuance of a license (including any brokering license) for the export of items valued at less than $50,000,000 that are controlled under this chapter pursuant to United States obligations under the Missile Technology Control Regime and are goods or services that are intended to support the design, utilization, development, or production of a space launch vehicle system listed in Category I of the MTCR Annex, the Secretary shall transmit to the Congress a report describing the licensed export and rationale for approving such export, including the consistency of such export with United States missile nonproliferation policy. The requirement contained in the preceding sentence shall not apply to licenses for exports to countries that were members of the MTCR as of April 17, 1987.

22 U.S.C. § 2797a Denial of transfer of missile equipment or technology by United States persons

(a) Sanctions(1) If the President determines that a United States person knowingly—(A) exports, transfers, or otherwise engages in the trade of any item on the MTCR Annex, in violation of the provisions of section 2778 of this title, section 4604 or 4605 11 See References in Text note below. of title 50 or any regulations or orders issued under any such provisions, (B) conspires to or attempts to engage in such export, transfer, or trade, or (C) facilitates such export, transfer, or trade by any other person, then the President shall impose the applicable sanctions described in paragraph (2). (2) The sanctions which apply to a United States person under paragraph (1) are the following:(A) If the item on the MTCR Annex involved in the export, transfer, or trade is missile equipment or technology within category II of the MTCR Annex, then the President shall deny to such United States person for a period of 2 years—(i) United States Government contracts relating to missile equipment or technology; and (ii) licenses for the transfer of missile equipment or technology controlled under this chapter. (B) If the item on the MTCR Annex involved in the export, transfer, or trade is missile equipment or technology within category I of the MTCR, then the President shall deny to such United States person for a period of not less than 2 years—(i) all United States Government contracts, and (ii) all export licenses and agreements for items on the United States Munitions List. (b) Discretionary sanctionsIn the case of any determination made pursuant to subsection (a), the President may pursue any penalty provided in section 2778(c) of this title. (c) PresumptionIn determining whether to apply sanctions under subsection (a) to a United States person involved in the export, transfer, or trade of an item on the MTCR Annex, it should be a rebuttable presumption that such item is designed for use in a missile listed in the MTCR Annex if the President determines that the final destination of the item is a country the government of which the Secretary of State has determined, for purposes of 22 So in original. Probably should be followed by “section”. 4605(j)(1)(A) 1 of title 50, has repeatedly provided support for acts of international terrorism. (d) WaiverThe President may waive the imposition of sanctions under subsection (a) with respect to a product or service if the President certifies to the Congress that—(1) the product or service is essential to the national security of the United States; and (2) such person is a sole source supplier of the product or service, the product or service is not available from any alternative reliable supplier, and the need for the product or service cannot be met in a timely manner by improved manufacturing processes or technological developments.

22 U.S.C. § 2797b Transfers of missile equipment or technology by foreign persons

(a) Sanctions(1) Subject to subsections (c) through (g),11 See References in Text note below. if the President determines that a foreign person, after November 5, 1990, knowingly—(A) exports, transfers, or otherwise engages in the trade of any MTCR equipment or technology that contributes to the acquisition, design, development, or production of missiles in a country that is not an MTCR adherent and would be, if it were United States-origin equipment or technology, subject to the jurisdiction of the United States under this chapter, (B) conspires to or attempts to engage in such export, transfer, or trade, or (C) facilitates such export, transfer, or trade by any other person, or if the President has made a determination with respect to a foreign person under section 4612(b)(1) of title 50, then the President shall impose on that foreign person the applicable sanctions under paragraph (2). (2) The sanctions which apply to a foreign person under paragraph (1) are the following:(A) If the item involved in the export, transfer, or trade is within category II of the MTCR Annex, then the President shall deny, for a period of 2 years—(i) United States Government contracts relating to missile equipment or technology; and (ii) licenses for the transfer to such foreign person of missile equipment or technology controlled under this chapter. (B) If the item involved in the export, transfer, or trade is within category I of the MTCR Annex, then the President shall deny, for a period of not less than 2 years—(i) all United States Government contracts with such foreign person; and (ii) licenses for the transfer to such foreign person of all items on the United States Munitions List. (C) If, in addition to actions taken under subparagraphs (A) and (B), the President determines that the export, transfer, or trade has substantially contributed to the design, development, or production of missiles in a country that is not an MTCR adherent, then the President shall prohibit, for a period of not less than 2 years, the importation into the United States of products produced by that foreign person. (b) Inapplicability with respect to MTCR adherents(1) In generalExcept as provided in paragraph (2), subsection (a) does not apply with respect to—(A) any export, transfer, or trading activity that is authorized by the laws of an MTCR adherent, if such authorization is not obtained by misrepresentation or fraud; or (B) any export, transfer, or trade of an item to an end user in a country that is an MTCR adherent. (2) LimitationNotwithstanding paragraph (1), subsection (a) shall apply to an entity subordinate to a government that engages in exports or transfers described in section 2295a(b)(3)(A) of this title. (c) Effect of enforcement actions by MTCR adherentsSanctions set forth in subsection (a) may not be imposed under this section on a person with respect to acts described in such subsection or, if such sanctions are in effect against a person on account of such acts, such sanctions shall be terminated, if an MTCR adherent is taking judicial or other enforcement action against that person with respect to such acts, or that person has been found by the government of an MTCR adherent to be innocent of wrongdoing with respect to such acts, and if the President certifies to the Committee on Foreign Relations of the Senate and the Committee on International Relations of the House of Representatives that—(1) for any judicial or other enforcement action taken by the MTCR adherent, such action has—(A) been comprehensive; and (B) been performed to the satisfaction of the United States; and (2) with respect to any finding of innocence of wrongdoing, the United States is satisfied with the basis for such finding. (d) Advisory opinionsThe Secretary of State, in consultation with the Secretary of Defense and the Secretary of Commerce, may, upon the request of any person, issue an advisory opinion to that person as to whether a proposed activity by that person would subject that person to sanctions under this section. Any person who relies in good faith on such an advisory opinion which states that the proposed activity would not subject a person to such sanctions, and any person who thereafter engages in such activity, may not be made subject to such sanctions on account of such activity. (e) Waiver and report to Congress(1) In any case other than one in which an advisory opinion has been issued under subsection (d) stating that a proposed activity would not subject a person to sanctions under this section, the President may waive the application of subsection (a) to a foreign person if the President determines that such waiver is essential to the national security of the United States. (2) In the event that the President decides to apply the waiver described in paragraph (1), the President shall so notify the Committee on Armed Services and the Committee on Foreign Relations of the Senate and the Committee on Armed Services and the Committee on Foreign Affairs of the House of Representatives not less than 45 working days before issuing the waiver. Such notification shall include a report fully articulating the rationale and circumstances which led the President to apply the waiver. (f) PresumptionIn determining whether to apply sanctions under subsection (a) to a foreign person involved in the export, transfer, or trade of an item on the MTCR Annex, it should be a rebuttable presumption that such item is designed for use in a missile listed in the MTCR Annex if the President determines that the final destination of the item is a country the government of which the Secretary of State has determined, for purposes of 4605(j)(1)(A) 22 So in original. Probably should be preceded by “section”. of title 50, has repeatedly provided support for acts of international terrorism. (g) Additional waiverThe President may waive the imposition of sanctions under paragraph (1) on a person with respect to a product or service if the President certifies to the Congress that—(1) the product or service is essential to the national security of the United States; and (2) such person is a sole source supplier of the product or service, the product or service is not available from any alternative reliable supplier, and the need for the product or service cannot be met in a timely manner by improved manufacturing processes or technological developments. (h) ExceptionsThe President shall not apply the sanction under this section prohibiting the importation of the products of a foreign person—(1) in the case of procurement of defense articles or defense services—(A) under existing contracts or subcontracts, including the exercise of options for production quantities to satisfy requirements essential to the national security of the United States; (B) if the President determines that the person to which the sanctions would be applied is a sole source supplier of the defense articles and services, that the defense articles or services are essential to the national security of the United States, and that alternative sources are not readily or reasonably available; or (C) if the President determines that such articles or services are essential to the national security of the United States under defense coproduction agreements or NATO Programs of Cooperation; (2) to products or services provided under contracts entered into before the date on which the President publishes his intention to impose the sanctions; or (3) to—(A) spare parts, (B) component parts, but not finished products, essential to United States products or production, (C) routine services and maintenance of products, to the extent that alternative sources are not readily or reasonably available, or (D) information and technology essential to United States products or production.

22 U.S.C. § 2797b–1 Notification of admittance of MTCR adherents

(a) Policy reportFollowing any action by the United States that results in a country becoming a MTCR adherent, the President shall transmit promptly to the Congress a report which describes the rationale for such action, together with an assessment of that country’s nonproliferation policies, practices, and commitments. Such report shall also include the text of any agreements or understandings between the United States and such country regarding the terms and conditions of the country’s adherence to the MTCR. (b) Intelligence assessment reportAt such times that a report is transmitted pursuant to subsection (a), the Director of Central Intelligence shall promptly prepare and submit to the Congress a separate report containing any credible information indicating that the country described in subsection (a) has engaged in any activity identified under subparagraph (A), (B), or (C) of section 2797b(a)(1) of this title within the previous two years.

22 U.S.C. § 2797b–2 Authority relating to MTCR adherents

Notwithstanding section 2797b(b) of this title, the President may take the actions under section 2797b(a)(2) of this title under the circumstances described in section 2797c(b)(2) of this title.

22 U.S.C. § 2797c Definitions

(a) In generalFor purposes of this subchapter—(1) the term “missile” means a category I system as defined in the MTCR Annex, and any other unmanned delivery system of similar capability, as well as the specially designed production facilities for these systems; (2) the term “Missile Technology Control Regime” or “MTCR” means the policy statement, between the United States, the United Kingdom, the Federal Republic of Germany, France, Italy, Canada, and Japan, announced on April 16, 1987, to restrict sensitive missile-relevant transfers based on the MTCR Annex, and any amendments thereto; (3) the term “MTCR adherent” means a country that participates in the MTCR or that, pursuant to an international understanding to which the United States is a party, controls MTCR equipment or technology in accordance with the criteria and standards set forth in the MTCR; (4) the term “MTCR Annex” means the Guidelines and Equipment and Technology Annex of the MTCR, and any amendments thereto; (5) the terms “missile equipment or technology” and “MTCR equipment or technology” mean those items listed in category I or category II of the MTCR Annex; (6) the term “United States person” has the meaning given that term in section 4618(2) 11 See References in Text note below. of title 50; (7) the term “foreign person” means any person other than a United States person; (8)(A) the term “person” means a natural person as well as a corporation, business association, partnership, society, trust, any other nongovernmental entity, organization, or group, and any governmental entity operating as a business enterprise, and any successor of any such entity; and (B) in the case of countries with non-market economies (excluding former members of the Warsaw Pact), the term “person” means—(i) all activities of that government relating to the development or production of any missile equipment or technology; and (ii) all activities of that government affecting the development or production of electronics, space systems or equipment, and military aircraft; and (9) the term “otherwise engaged in the trade of” means, with respect to a particular export or transfer, to be a freight forwarder or designated exporting agent, or a consignee or end user of the item to be exported or transferred. (b) International understanding definedFor purposes of subsection (a)(3), as it relates to any international understanding concluded with the United States after January 1, 2000, the term “international understanding” means—(1) any specific agreement by a country not to export, transfer, or otherwise engage in the trade of any MTCR equipment or technology that contributes to the acquisition, design, development, or production of missiles in a country that is not an MTCR adherent and would be, if it were United States-origin equipment or technology, subject to the jurisdiction of the United States under this chapter; or (2) any specific understanding by a country that, notwithstanding section 2797b(b) of this title, the United States retains the right to take the actions under section 2797b(a)(2) of this title in the case of any export or transfer of any MTCR equipment or technology that contributes to the acquisition, design, development, or production of missiles in a country that is not an MTCR adherent and would be, if it were United States-origin equipment or technology, subject to the jurisdiction of the United States under this chapter.