[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 2053 Placed on Calendar Senate (PCS)]





                                                       Calendar No. 574

104th CONGRESS

  2d Session

                                S. 2053

_______________________________________________________________________

                                 A BILL

 To strengthen narcotics control reporting requirements and to require 
  the imposition of certain sanctions on countries that fail to take 
 effective action against the production of and trafficking in illicit 
 narcotic and psychotropic drugs and other controlled substances, and 
                          for other purposes.

_______________________________________________________________________

                           September 5, 1996

            Read the second time and placed on the calendar





                                                       Calendar No. 574
104th CONGRESS
  2d Session
                                S. 2053

 To strengthen narcotics control reporting requirements and to require 
  the imposition of certain sanctions on countries that fail to take 
 effective action against the production of and trafficking in illicit 
 narcotic and psychotropic drugs and other controlled substances, and 
                          for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 4, 1996

Mr. Grassley (for himself, Mr. D'Amato, and Mr. Shelby) introduced the 
             following bill; which was read the first time

                           September 5, 1996

            Read the second time and placed on the calendar

_______________________________________________________________________

                                 A BILL


 
 To strengthen narcotics control reporting requirements and to require 
  the imposition of certain sanctions on countries that fail to take 
 effective action against the production of and trafficking in illicit 
 narcotic and psychotropic drugs and other controlled substances, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``International Narcotics Control Act 
of 1996''.

SEC. 2. STRENGTHENING REPORTING AND CERTIFICATION PROCESS.

    (a) In General.--Section 489(a) of the Foreign Assistance Act of 
1961 (22 U.S.C. 2191h(a)) is amended by adding at the end the following 
new paragraph:
            ``(8) In addition, the report required by this section 
        shall also include information from the United States Trade 
        Representative, in consultation with the Secretary of State, on 
        the bilateral trade relationship between the United States and 
        each major illicit drug producing country and each major drug-
        transit country as determined under section 490(h), including 
        the volume of imports (by dollar value) entering the United 
        States from that country under any preferential trade program. 
        The report may be submitted in classified form, as 
        appropriate.''.
    (b) Mid-Year Report.--Section 490 of the Foreign Assistance Act of 
1961 (22 U.S.C. 2191j) is amended by adding at the end the following 
new subsection:
    ``(i) Mid-Year Report.--Not later than September 1 of each year, 
the President shall transmit to the appropriate committees of Congress 
a complete and detailed mid-year report on the activities of each 
country not certified under subsection (b)(1)(A) or granted a national 
interest waiver under subsection (b)(1)(B). The report shall include 
information relating to--
            ``(1) the progress each such country is making in meeting 
        the standards for cooperation described in subsection (b) (1) 
        and (2); and
            ``(2) the degree to which each such country meets the 
        conditions of subsection (f)(2).''.
    (c) Considerations Regarding Cooperation.--Section 490(b)(2) of the 
Foreign Assistance Act of 1961 (22 U.S.C. 2291j(b)(2)) is amended--
            (1) by striking ``and'' at the end of subparagraph (B);
            (2) by striking the period at the end of subparagraph (C) 
        and inserting a semicolon; and
            (3) by adding at the end the following new subparagraphs:
                    ``(D) adopted and is implementing an effective 
                strategic plan to reduce or eliminate illicit 
                cultivation, distribution, sale, transport, and 
                financing of narcotic and psychotropic drugs, precursor 
                chemicals, and other controlled substances;
                    ``(E) is permitting a representative from the 
                United States to be present and to certify the 
                destruction of illicit narcotic, psychotropic, 
                precursor chemicals, and other controlled substances;
                    ``(F) is permitting regular, unscheduled site 
                inspections by a representative of the United States of 
                equipment loaned or leased to that country by the 
                United States;
                    ``(G) is taking all necessary steps to ensure the 
                proper supervision of individuals in the custody of 
                that country for narcotics-related activities or for 
                money laundering and is taking all appropriate steps to 
                assure that such individuals are not trafficking or 
                engaging in money laundering or other narcotics-related 
                activities while in custody; and
                    ``(H) is taking all necessary steps to prevent the 
                diversion of United States assistance or equipment, 
                including fully cooperating with United States 
                officials responsible for monitoring the use, 
                maintenance, or location of United States equipment.''.
    (d) Additional Reporting Requirements.--Section 489(a) of the 
Foreign Assistance Act (22 U.S.C. 2191h(a)), as amended by subsection 
(a), is amended by adding at the end the following new paragraph:
            ``(9)(A) In addition, for each country identified pursuant 
        to paragraph (3) (A) or (B), the Department of State, or other 
        appropriate negotiating agency, shall notify the Committee on 
        Foreign Relations of the Senate and the Committee on 
        International Relations of the House of Representatives within 
        10 calendar days of reaching an agreement on the extradition of 
        an individual. The notification shall contain the following:
                    ``(i) The date the agreement was reached.
                    ``(ii) The name of the countries, if applicable, 
                that are involved in the agreement, as well as the 
                citizenship of each individual who is to be extradited.
                    ``(iii) The name of each individual for whom the 
                extradition agreement was made, including the charges 
                pending against the individual.
                    ``(iv) What, if any, arrangements have been made by 
                the United States in order to conclude or facilitate 
                the extradition agreement.
                    ``(v) The date that each extradition is to occur.
            ``(B) The notification described in subparagraph (A) may be 
        waived if the notification would compromise the national 
        security interests of the United States, and the appropriate 
        committees of the Congress are notified in writing of the 
        waiver. Notification shall be made once national security 
        interests are no longer threatened and shall be accompanied 
        with an appropriate explanation of the reasons for the original 
        waiver.''.

SEC. 3. STRENGTHENING TRADE SANCTIONS.

    (a) Required Trade Sanctions.--Section 802 of the Trade Act of 1974 
(19 U.S.C. 2492) is amended--
            (1) by striking subsections (d) and (e); and
            (2) by inserting after subsection (c) the following new 
        subsections:
    ``(d) Required Trade Sanctions.--
            ``(1) In general.--
                    ``(A) Recommendations.--Notwithstanding subsections 
                (a) and (b), not later than April 1 of each year, the 
                Secretary of State, in consultation with the United 
                States Trade Representative and appropriate agencies, 
                shall recommend to the President the imposition of one 
                or more of the trade sanctions described in paragraph 
                (2) in the case of a country described in subparagraph 
                (B).
                    ``(B) Country described.--A country is described in 
                this subparagraph if--
                            ``(i) it is--
                                    ``(I) a major illicit drug 
                                producing country; or
                                    ``(II) a major drug-transit 
                                country; and
                            ``(ii) with respect to such country, for 3 
                        consecutive years--
                                    ``(I) the President--
                                            ``(aa) does not make a 
                                        certification pursuant to 
                                        section 490(b)(1)(A) of the 
                                        Foreign Assistance Act of 1961; 
                                        or
                                            ``(bb) grants a national 
                                        interest waiver under section 
                                        490(b)(1)(B) of such Act; or
                                    ``(II) if the President makes such 
                                certification or grants such waiver, 
                                the Congress enacts a joint resolution 
                                under section 490(d) of such Act 
                                disapproving the action of the 
                                President.
            ``(2) Required trade sanctions.--
                    ``(A) In general.--A trade sanction described in 
                this paragraph means with respect to a country 
                described in paragraph (1)(B)--
                            ``(i) denial of nondiscriminatory treatment 
                        or preferential tariff treatment to any or all 
                        of the 5 major products of the country under 
                        title V (relating to the Generalized System of 
                        Preferences), the Caribbean Basin Economic 
                        Recovery Act, the Andean Trade Preference Act, 
                        or any other law providing preferential tariff 
                        treatment;
                            ``(ii) application of an additional duty at 
                        a rate not to exceed 50 percent ad valorem, or 
                        the specific rate equivalent, to any or all of 
                        the 5 major dutiable products of the country;
                            ``(iii) application of a duty at a rate not 
                        to exceed 50 percent ad valorem to one or more 
                        of the 5 major duty-free products of the 
                        country;
                            ``(iv) implementation of the steps 
                        described in subsection (g) (1) or (2), or 
                        both, to curtail air transportation between the 
                        United States and the country;
                            ``(v) withdrawal of the personnel and 
                        resources of the United States from 
                        participation in any arrangement with the 
                        country for the preclearance of customs by 
                        visitors between the United States and the 
                        country;
                            ``(vi) denial of trade benefits under any 
                        agreement between that country and the United 
                        States establishing a free trade area;
                            ``(vii) refusal to continue to negotiate 
                        with that country for purposes of establishing 
                        a free trade area;
                            ``(viii) notwithstanding any other 
                        provision of law, denial or imposition of 
                        restrictions on immigrant and nonimmigrant 
                        visas requested by nationals of that country;
                            ``(ix) imposition of stricter inspection 
                        standards on the products of that country, 
                        including inspection of at least 35 percent of 
                        the products of that country;
                            ``(x) denial of export of United States 
                        products to that country or importation into 
                        the United States of products that are the 
                        product, growth, or manufacture of that 
                        country; or
                            ``(xi) any combination of the actions 
                        described in clauses (i) through (x).
                    ``(B) Requirement for imposition of sanctions.--Not 
                later than 10 days after the date the recommendations 
                are submitted under paragraph (1)(A), the President 
                shall report to the Congress which sanctions the 
                President intends to implement under this subsection 
                and not later than 90 days after the date of such 
                report, the President shall take at least one of the 
                actions described in subparagraph (A) with respect to a 
                country described in paragraph (1)(B).
            ``(3) 5 major products.--For purposes of this subsection, 
        the term ``5 major products'' means the top 5 products by 
        dollar value imported from a country described in paragraph (1) 
        as identified in the most recent report filed under section 
        489(a)(8) of the Foreign Assistance Act of 1961.
    ``(e) Duration of Action.--Any action taken by the President under 
subsection (d)(2)(A) (i), (ii), (iii), or (iv) shall apply to the 
products of a foreign country that are entered, or withdrawn from 
warehouse for consumption, during the period that such action is in 
effect.
    ``(f) Recertification.--Any action taken by the President under 
subsection (d)(2)(A) against a country shall remain in effect until--
            ``(1) the President, at the time of submission of the 
        report required by section 489(a) of the Foreign Assistance Act 
        of 1961, if appropriate--
                    ``(A) makes a certification under section 
                490(b)(1)(A) of the Foreign Assistance Act of 1961 with 
                respect to that country, if the action was taken under 
                subsection (d)(2)(B); and
                    ``(B) the Congress does not enact a joint 
                resolution under section 490(d) of such Act 
                disapproving the determination of the President 
                contained in that certification; or
            ``(2) the President, at any other time, makes the 
        certification described in section 490(b)(1)(B) of such Act 
        with respect to that country, except that this paragraph 
        applies only if either--
                    ``(A) the President also certifies that--
                            ``(i) that country has undergone a 
                        fundamental change in the government; or
                            ``(ii) there has been a fundamental change 
                        in the conditions that were the reason--
                                    ``(I) why the President had not 
                                made a certification with respect to 
                                that country under section 490(b)(1)(A) 
                                of such Act; or
                                    ``(II) in any case in which the 
                                Congress enacted a joint resolution 
                                disapproving the determination 
                                contained in the certification, why the 
                                Congress enacted that joint resolution; 
                                and
                    ``(B) the Congress does not enact a joint 
                resolution disapproving the determination contained in 
                the certification under section 490(b)(1)(B) of such 
                Act.
        Any certification under subparagraph (A) of paragraph (2) shall 
        be accompanied by a statement justifying the determination 
        contained in the certification.
    ``(g) Presidential Action Regarding Aviation.--
            ``(1) Suspension of air service.--(A) The President is 
        authorized to notify the government of a country against which 
        is imposed the sanction described in subsection (d)(2)(A)(iv)) 
        of the President's intention to suspend the authority of 
        foreign air carriers owned or controlled by the government or 
        nationals of that country to engage in foreign air 
        transportation to or from the United States.
            ``(B) Within 10 days after the date of notification of a 
        government under subparagraph (A), 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 the government 
        or nationals of that country to engage in foreign air 
        transportation to or from the United States, notwithstanding 
        any agreement relating to air services.
            ``(C) The President may also direct the Secretary of 
        Transportation to take such steps as may be necessary to 
        suspend the authority of any air carrier to engage in foreign 
        air transportation between the United States and that country.
            ``(2) Termination of air service agreement.--(A) The 
        President may direct the Secretary of State to terminate any 
        air service agreement between the United States and a country 
        against which a sanction described in subsection (d)(2)(A) is 
        imposed in accordance with the provisions of that agreement.
            ``(B) Upon termination of an agreement under this 
        paragraph, 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 or nationals of that 
        country to engage in foreign air transportation to or from the 
        United States.
            ``(C) Upon termination of an agreement under this 
        paragraph, the Secretary of Transportation may also revoke the 
        authority of any air carrier to engage in foreign air 
        transportation between the United States and that country.
            ``(3) Exceptions.--The Secretary of Transportation may 
        provide for such exceptions from paragraphs (1) and (2) as the 
        Secretary considers necessary to provide for emergencies in 
        which the safety of an aircraft or its crew or passengers is 
        threatened.
    ``(h) Notification.--
            ``(1) In general.--The President shall notify the 
        appropriate congressional committees any time an action is 
        taken under subsection (d) with respect to a major illicit drug 
        producing or major drug-transit country.
            ``(2) Modification or suspension of action.--The President 
        shall also notify the appropriate congressional committees any 
        time an action taken under subsection (d) with respect to a 
        major illicit drug producing or major drug-transit country is 
        modified or suspended.
    ``(i) Definitions.--For purposes of this section:
            ``(1) Appropriate congressional committees.--The term 
        `appropriate congressional committees' means the Committee on 
        Ways and Means and the Committee on International Relations of 
        the House of Representatives and the Committee on Finance and 
        the Committee on Foreign Relations of the Senate.
            ``(2) Foreign air transportation, etc.--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).
            ``(3) Major illicit drug producing country, etc.--The terms 
        `major illicit drug producing country' and `major drug-transit 
        country' have the meanings such terms have under section 481(e) 
        of the Foreign Assistance Act of 1961 (22 U.S.C. 2291(e)).''.
    (b) Conforming Amendments.--Section 802(a) of the Trade Act of 1974 
(19 U.S.C. 2491(a)) is amended--
            (1) by striking ``Subject to'' and inserting ``Except as 
        provided in subsection (d) and subject to''; and
            (2) in paragraph (4), by striking ``(d)(1) and (d)(2)'' and 
        inserting ``(g)(1) and (g)(2)''.

SEC. 4. INTERNATIONAL NARCOTICS CONTROL STRATEGY REPORT.

    (a) Reports on Certain Countries.--Section 489(a) of the Foreign 
Assistance Act of 1961 (22 U.S.C. 2291h(a)), as amended by section 2, 
is amended by adding at the end the following new paragraph:
            ``(10) In addition, for each country identified under 
        subparagraph (A), (B), or (C) of paragraph (3) for which the 
        President is making a certification under section 490, 
        information regarding--
                    ``(A) what actions, if any, the United States has 
                taken with regard to a country under section 487 and 
                how the country has been affected by the President's 
                implementation of section 487; and
                    ``(B) how the country has been economically 
                affected by the production and trafficking in narcotic 
                and psychotropic drugs and controlled substances.
        The report shall include information regarding the size of the 
        illegal drug economy.''.
    (b) General Reporting Requirements.--Section 489(a)(2) of such Act 
(22 U.S.C. 2291h(a)(2)) is amended by adding at the end the following 
new subparagraphs:
                    ``(C) Information regarding the steps the President 
                is taking to implement section 487.
                    ``(D) Information regarding the use of any 
                equipment made available to a foreign country by the 
                United States.''.
    (c) Determination of Major Money Laundering Country.--Section 
490(h) of such Act (22 U.S.C. 2291j(h)) is amended by adding at the end 
the following: ``For purposes of this chapter and section 802 of the 
Trade Act of 1974, any country identified as a major money laundering 
country in the report required under section 489(a)(3)(C) shall be 
treated as a major drug-transit country or a major illicit drug 
producing country.''.

SEC. 5. DEFENSES OF THE UNITED STATES UNDER EXISTING TRADE AGREEMENTS.

    If proceedings are initiated by a country against the United States 
in the World Trade Organization or under the North American Free Trade 
Agreement with respect to actions taken pursuant to title VIII of the 
Trade Act of 1974 (19 U.S.C. 2491 et seq.), the President shall invoke 
all applicable defenses in such proceedings, including exceptions for 
measures necessary to protect the national security of the United 
States and to protect human, animal or plant life, or health.

SEC. 6. SPECIAL RULE FOR APPLICATION OF SECTION 802(d).

    Section 802(d) of the Trade Act of 1974, as added by section 3(a) 
of this Act, shall apply to countries described in paragraph (1)(B) of 
such section 802(d) with respect to which for 3 consecutive years 
beginning on or after January 1, 1995--
            (1) the President--
                    (A) does not make a certification pursuant to 
                section 490(b)(1)(A) of the Foreign Assistance Act of 
                1961; or
                    (B) grants a national interest waiver under section 
                490(b)(1)(B) of such Act; or
          (2) if the President makes such certification or grants such 
        waiver, the Congress enacts a joint resolution under section 
        490(d) of such Act disapproving the action of the President.