§2797a — Title 22 Foreign Relations and Intercourse | U.S. Code

Summary

If the President finds that a U.S. person knowingly exports, tries to export, or helps export items listed on the MTCR Annex in violation of U.S. export rules, the President must block that person from certain U.S. business and export privileges. For Category II items, the person is denied U.S. government contracts related to missile gear or technology and denied licenses to transfer such missile gear or technology for 2 years. For Category I items, the person is denied all U.S. government contracts and all export licenses and agreements for items on the U.S. Munitions List for not less than 2 years. The President can also use penalties listed in 2778(c). If the item is headed to a country the State Department has found repeatedly supports international terrorism, it is assumed (unless proven otherwise) the item is for a missile. The President may waive the sanctions for a product or service if he tells Congress it is essential to U.S. national security and the supplier is the sole source, no reliable alternative exists, and the need cannot be met in time by better manufacturing or technology.

Title 22, §2797a

Foreign Relations and Intercourse — Source: USLM XML via OLRC

(a)(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,

(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)In 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)In determining whether to apply sanctions under subsection (a) to a United States person involved in the export, transfer, or trade of an item on the MTCR Annex, it should be a rebuttable presumption that such item is designed for use in a missile listed in the MTCR Annex if the President determines that the final destination of the item is a country the government of which the Secretary 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)The 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.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 4604 and 4605 of title 50, referred to in subsecs. (a)(1)(A) and (c), were repealed by Pub. L. 115–232, div. A, title XVII, § 1766(a), Aug. 13, 2018, 132 Stat. 2232. This chapter, referred to in subsec. (a)(2)(A)(ii), was in the original “this Act”, meaning Pub. L. 90–629, Oct. 22, 1968, 82 Stat. 1321, which is classified principally to this chapter. For complete classification of this Act to the Code, see

Short Title

note set out under section 2751 of this title and Tables.

Amendments

1994—Subsecs. (c), (d). Pub. L. 103–236 added subsec. (c) and redesignated former subsec. (c) as (d).

Executive Documents

Delegation of Functions For delegation of certain functions of the President under this section, see Ex. Ord. No. 12851, § 2(a), June 11, 1993, 58 F.R. 33181, set out as a note under section 2797 of this title.

§2797a Denial of transfer of missile equipment or technology by United States persons