§2798 Sanctions against certain foreign persons

Summary

The President must put in place two penalties when he finds that, on or after October 28, 1991, a foreign person knowingly and significantly helped a foreign government, project, or group get chemical or biological weapons. That help can be by exporting U.S.-controlled goods or technology from the United States, by exporting from another country items that would be controlled by the United States, or by other similar transactions. The rule covers the person the President names, any successor, and parents, subsidiaries, or affiliates that knowingly helped and were controlled. It especially applies for cases tied to countries that after January 1, 1980 used chemical or biological weapons, used them against their own people, prepared to do so, or to governments labeled as state sponsors of terrorism, or to any country, project, or entity the President designates. The President is urged to talk with the government that has jurisdiction over the foreign person and may delay the penalties up to 90 days to do so, and up to another 90 days if that government is working to fix the problem and the President tells Congress. The two penalties are: U.S. government agencies may not buy goods or services from the listed person, and products made by that person may not be imported into the United States. There are exceptions for certain defense contracts, existing contracts, essential spare parts or maintenance, critical technology or production items, and medical or humanitarian supplies. Penalties must last at least 12 months and end only if the President certifies the foreign person has stopped aiding weapon efforts. After 12 months the President can waive a penalty for U.S. national security reasons if Congress is told at least 20 days beforehand with a report. “Foreign person” means a non-U.S. citizen or non‑permanent resident individual, or an entity formed under foreign law or with its main place of business outside the United States.