Trafficking in counterfeit military goods or services

(a)

Trafficking in counterfeit military goods or services

Section 2320 of title 18, United States Code, is amended— (1)in subsection (a), by adding at the end the following:

(3)

Military goods or services

(A)

In general

A person who commits an offense under paragraph (1) with knowledge that the good or service described in paragraph (1) is identified as meeting military standards or is intended for use in a military or national security application shall be punished in accordance with subparagraph (B). (B)

Penalties

(i)

Individual

An individual who commits an offense described in subparagraph (A) shall be fined not more than $5,000,000, imprisoned for not more than 20 years, or both. (ii)

Person other than an individual

A person other than an individual that commits an offense described in subparagraph (A) shall be fined not more than $15,000,000. (C)

Subsequent offenses

(i)

Individual

An individual who commits an offense described in subparagraph (A) after the individual is convicted of an offense under subparagraph (A) shall be fined not more than $15,000,000, imprisoned not more than 30 years, or both. (ii)

Person other than an individual

A person other than an individual that commits an offense described in subparagraph (A) after the person is convicted of an offense under subparagraph (A) shall be fined not more than $30,000,000.

; and

(2)in subsection (e)— (A)in paragraph (1), by striking the period at the end and inserting a semicolon; (B)in paragraph (3), by striking and at the end; (C)in paragraph (4), by striking the period at the end and a semicolon; and (D)by adding at the end the following:

(5)the term identified as meeting military standards relating to a good or service— (A)means the good or service— (i)bears a label, tag, stamp, product code, phrase, or emblem of any kind that indicates that the good or service meets a standard, requirement, or specification issued by the Department of Defense, an Armed Force, or a reserve component; (ii)is packaged in a wrapper, container, box, case, or packaging of any type or nature which bears a label, tag, stamp, product code, phrase, or emblem of any kind which indicates that the good or services meets a standard, requirement, or specification issued by the Department of Defense, an Armed Force, or a reserve component; or (iii)is accompanied by or marketed with a certificate or other oral or written representation that the good or service meets a standard, requirement, or specification issued by the Department of Defense, an Armed Force, or a reserve component; and (B)shall not apply to the identification of a good or service in a manner that is unlikely to cause confusion, to cause mistake, or to deceive; and (6)the term use in a military or national security application means the use of a good or service, independently, in conjunction with, or as a component of another good or service— (A)during the performance of the official duties of the Armed Forces of the United States or the reserve components of the Armed Forces; or (B)by or for the United States in furtherance of the national defense or national security.

(b)

Sentencing guidelines

(1)

Directive

Not later than 180 days after the date of enactment of this Act, pursuant to is authority under section 994 of title 28, United States Code, and in accordance with this subsection, the United States Sentencing Commission shall review and amend the Federal sentencing guidelines and policy statements application to persons convicted of an offense under section 2320(a) of title 18, United States Code, to reflect the intent of Congress that penalties for such offenses be increased in comparison to those provided on the day before the date of enactment of this Act under the guidelines and policy statements. (2)

Requirements

In amending the Federal Sentencing Guidelines and policy statements under paragraph (1), the United States Sentencing Commission shall— (A)ensure that the guidelines and policy statements, including section 2B5.3 of the Federal Sentencing Guidelines (and any successor thereto), reflect— (i)the serious nature of the offenses described in section 2320(a) of title 18, United States Code; (ii)the need for an effective deterrent and appropriate punishment to prevent offenses under section 2320(a) of title 18, United States Code; and (iii)the effectiveness of incarceration in furthering the objectives described in clauses (i) and (ii); (B)consider the extent to which the guidelines appropriately account for the risk, even if attenuated or unknown to the offender, to members of the Armed Forces of the United States, military readiness, and national security resulting from an offense committed under section 2320(a) of title 18, United States Code, including in instances involving a limited value or quantity of goods or services; (C)ensure reasonable consistency with other relevant directives and guidelines and Federal statutes; (D)make any necessary conforming changes to the guidelines; and (E)ensure that the guidelines relating to offenses under section 2320(a) of title 18, United States Code, adequately meet the purposes of sentencing, as described in section 3553(a)(2) of title 18, United States Code.