§2313 — Title 21 Food and Drugs | U.S. Code

Summary

Allows the U.S. government to impose nine types of penalties on a foreign person. These include stopping U.S. banks from lending to them; blocking a foreign bank from being a primary dealer or from acting as a U.S. government agent or custodian for government funds; refusing U.S. government contracts; banning certain foreign-exchange deals or credit transfers under U.S. jurisdiction; freezing or forbidding dealings in property under U.S. jurisdiction that the foreign person has an interest in; stopping U.S. persons from buying large amounts of the foreign person’s stock or debt; denying visas or excluding from the United States corporate officers or controlling shareholders; and applying the same penalties to the foreign person’s top executives. Anyone who violates rules made to carry out these penalties faces the penalties in 50 U.S.C. 1705(b) and (c). The penalties do not apply to activities reported under title V of the National Security Act (50 U.S.C. 3091 et seq.) or to authorized U.S. intelligence or law enforcement work. Visa denials do not apply when admitting the person is needed to meet the U.S. obligations under the Agreement regarding the Headquarters of the United Nations (signed June 26, 1947; entered into force November 21, 1947), the Convention on Consular Relations (done April 24, 1963; entered into force March 19, 1967), or other international duties. The President may use the authorities in 50 U.S.C. 1702 and 1704 to enforce these rules.

Title 21, §2313

Food and Drugs — Source: USLM XML via OLRC

(a)The sanctions that may be imposed with respect to a foreign person under section 2312 of this title are the following:

(1)The United States Government may prohibit any United States financial institution from making loans or providing credits to the foreign person.

(2)The following prohibitions may be imposed with respect to a foreign person that is a financial institution:

(A)Neither the Board of Governors of the Federal Reserve System nor the Federal Reserve Bank of New York may designate, or permit the continuation of any prior designation of, the financial institution as a primary dealer in United States Government debt instruments.

(B)The financial institution may not serve as agent of the United States Government or serve as repository for United States Government funds.

(3)The United States Government may not procure, or enter into any contract for the procurement of, any goods or services from the foreign person.

(4)The President may, pursuant to such regulations as the President may prescribe, prohibit any transactions in foreign exchange that are subject to the jurisdiction of the United States and in which the foreign person has any interest.

(5)The President may, pursuant to such regulations as the President may prescribe, prohibit any transfers of credit or payments between financial institutions or by, through, or to any financial institution, to the extent that such transfers or payments are subject to the jurisdiction of the United States and involve any interest of the foreign person.

(6)The President may, pursuant to such regulations as the President may prescribe, prohibit any person from—

(A)acquiring, holding, withholding, using, transferring, withdrawing, or transporting any property that is subject to the jurisdiction of the United States and with respect to which the foreign person has any interest;

(B)dealing in or exercising any right, power, or privilege with respect to such property; or

(C)conducting any transaction involving such property.

(7)The President may, pursuant to such regulations or guidelines as the President may prescribe, prohibit any United States person from investing in or purchasing significant amounts of equity or debt instruments of the foreign person.

(8)The President may direct the Secretary of State to deny a visa to, and the Secretary of Homeland Security to exclude from the United States, any alien that the President determines is a corporate officer or principal of, or a shareholder with a controlling interest in, the foreign person.

(9)The President may impose on the principal executive officer or officers of the foreign person, or on individuals performing similar functions and with similar authorities as such officer or officers, any of the sanctions described in paragraphs (1) through (8) that are applicable.

(b)A person that violates, attempts to violate, conspires to violate, or causes a violation of any regulation, license, or order issued to carry out subsection (a) shall be subject to the penalties set forth in subsections (b) and (c) of section 1705 of title 50 to the same extent as a person that commits an unlawful act described in subsection (a) of that section.

(c)(1)Sanctions under this section shall not apply with respect to—

(A)any activity subject to the reporting requirements under title V of the National Security Act of 1947 (50 U.S.C. 3091 et seq.); or

(B)any authorized intelligence or law enforcement activities of the United States.

(2)Sanctions under subsection (a)(8) shall not apply to an alien if admitting the alien into the United States is necessary to permit the United States to comply with the Agreement regarding the Headquarters of the United Nations, signed at Lake Success June 26, 1947, and entered into force November 21, 1947, between the United Nations and the United States, the Convention on Consular Relations, done at Vienna April 24, 1963, and entered into force March 19, 1967, or other applicable international obligations.

(d)The President may exercise all authorities provided under section 1702 and 1704 of title 50 to carry out this section.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The National Security Act of 1947, referred to in subsec. (c)(1)(A), is act July 26, 1947, ch. 343, 61 Stat. 495. Title V of the Act is classified generally to subchapter III (§ 3091 et seq.) of chapter 44 of Title 50, War and National Defense. For complete classification of this Act to the Code, see Tables.

Executive Documents

Delegation of Functions Functions and authorities of President under subsections (a)(4) to (9) and (d) of this section delegated to Secretary of the Treasury, in consultation with the Secretary of State, by section 1(d)(vi) and (vii) of Memorandum of President of the United States, Mar. 31, 2020, 85 F.R. 22343, set out as a note under section 2311 of this title.

§2313 Description of Sanctions