[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1562 Introduced in Senate (IS)]
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115th CONGRESS
1st Session
S. 1562
To impose sanctions with respect to the Government of the Democratic
People's Republic of Korea and any enablers of the activities of that
Government, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 13, 2017
Mr. Gardner (for himself, Mr. Markey, Mr. Menendez, Mr. Portman, Mr.
Rubio, and Mr. Cotton) introduced the following bill; which was read
twice and referred to the Committee on Banking, Housing, and Urban
Affairs
_______________________________________________________________________
A BILL
To impose sanctions with respect to the Government of the Democratic
People's Republic of Korea and any enablers of the activities of that
Government, 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 ``North Korean Enablers Accountability
Act of 2017''.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) The Government of the Democratic People's Republic of
Korea has flagrantly defied the international community by
illicitly developing its nuclear and ballistic missile
programs, in violation of United Nations Security Council
Resolutions 1718 (2006), 1874 (2009), 2087 (2013), 2094 (2013),
2270 (2016), and 2321 (2016).
(2) The Government of the Democratic People's Republic of
Korea engages in gross human rights abuses against its own
people and citizens of other countries, including the United
States and Japan.
(3) The United States and its partners are committed to
pursuing a peaceful denuclearization of the Democratic People's
Republic of Korea through a policy of maximum pressure and
engagement.
SEC. 3. SANCTIONS WITH RESPECT TO THE GOVERNMENT OF THE DEMOCRATIC
PEOPLE'S REPUBLIC OF KOREA AND ITS ENABLERS.
(a) Blocking of Property.--On and after the date that is 90 days
after the date of the enactment of this Act, the President shall block
and prohibit all transactions in all property and interests in property
of a person described in subsection (d) if such property and interests
in property are in the United States, come within the United States, or
are or come within the possession or control of a United States person.
(b) Facilitation of Certain Transactions.--The President shall
prohibit the opening, and prohibit or impose strict conditions on the
maintaining, in the United States of a correspondent account or a
payable-through account by a foreign financial institution that the
President determines has knowingly, on or after the date that is 90
days after the date of the enactment of this Act, conducted or
facilitated a significant transaction with respect to the importation,
sale, or transfer of goods or services from the Democratic People's
Republic of Korea on behalf of a person described in subsection (d).
(c) Importation, Sale, or Transfer of Goods and Services.--The
President shall impose sanctions pursuant to the International
Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) with respect to
a person if the President determines that the person knowingly, on or
after the date that is 90 days after the date of the enactment of this
Act, imports, purchases, or transfers goods or services from a person
described in subsection (d).
(d) Persons Described.--A person described in this subsection is
any of the following:
(1) The Government of the Democratic People's Republic of
Korea or any political subdivision, agency, or instrumentality
of that Government.
(2) Any person owned or controlled, directly or indirectly,
by that Government.
(3) Any person acting or purporting to act, directly or
indirectly, for or on behalf of that Government.
(4) The following entities:
(A) Dandong Zhicheng Metallic Material.
(B) Shandong International Trade co Ltd Hongjian.
(C) Xiamen Xiang Yu Shares Co.
(D) Sdic Jingmin Putian Ltd.
(E) Hangzhou Pei Amoy Trading company.
(F) Hunchun xin Times.
(G) Rizhao Steel Holding.
(H) Shandong Yun Hill Mines.
(I) China Dawn Garmet (Dalian).
(J) Dandong Hao Du Trading co. ltd.
(5) Any person affiliated with an entity described in
paragraph (4).
(6) Any person affiliated with an entity identified by the
Secretary of the Treasury as a major importer of goods and
services from the Democratic People's Republic of Korea.
(e) Exemptions.--The following activities are exempt from sanctions
under this section:
(1) Activities subject to the reporting requirements under
title V of the National Security Act of 1947 (50 U.S.C. 3091 et
seq.).
(2) Authorized intelligence activities of the United
States.
(3) Activities necessary to comply with United States
obligations under the Agreement between the United Nations and
the United States of America regarding the Headquarters of the
United Nations, signed at Lake Success June 26, 1947, and
entered into force November 21, 1947, the Convention on
Consular Relations, done at Vienna April 24, 1963, and entered
into force March 19, 1967, or any other international
agreement.
(4) Activities incidental to the POW/MIA accounting mission
in the Democratic People's Republic of Korea, including
activities by the Defense POW/MIA Accounting Agency and other
governmental or nongovernmental organizations tasked with
identifying or recovering the remains of members of the United
States Armed Forces in the Democratic People's Republic of
Korea.
(f) Waivers.--
(1) In general.--The President may waive the application of
sanctions under this section with respect to a person if the
President--
(A) determines that the waiver is in the national
security interest of the United States; and
(B) submits to the appropriate congressional
committees a report on the determination and the
reasons for the determination.
(2) Humanitarian waiver.--
(A) In general.--The President may waive, for
renewable periods of not less than 30 days and not more
than one year, the application of sanctions under this
section if the President submits to the appropriate
congressional committees a written determination that
the waiver is necessary for humanitarian assistance or
to carry out the humanitarian purposes set forth in
section 4 of the North Korean Human Rights Act of 2004
(22 U.S.C. 7802).
(B) Content of written determination.--A written
determination submitted under subparagraph (A) with
respect to a waiver shall include a description of all
notification and accountability controls that have been
employed in order to ensure that the activities covered
by the waiver are humanitarian assistance or are
carried out for the purposes set forth in section 4 of
the North Korean Human Rights Act of 2004 (22 U.S.C.
7802) and do not entail any activities in North Korea
or dealings with the Government of North Korea not
reasonably related to humanitarian assistance or those
purposes.
(C) Clarification of permitted activities.--An
internationally recognized humanitarian organization
shall not be subject to sanctions under this section
for--
(i) engaging in a financial transaction
relating to humanitarian assistance or for
humanitarian purposes pursuant to a waiver
issued under subparagraph (A);
(ii) transporting goods or services that
are necessary to carry out operations relating
to humanitarian assistance or humanitarian
purposes pursuant to such a waiver; or
(iii) having merely incidental contact, in
the course of providing humanitarian assistance
or aid for humanitarian purposes pursuant to
such a waiver, with individuals who are under
the control of a foreign person subject to
sanctions under this section.
(g) Rule of Construction.--A person described in subsection (d) is
subject to sanctions under this section without regard to whether the
name of the person is published in the Federal Register or incorporated
into the list of specially designated nationals and blocked persons
maintained by the Office of Foreign Assets Control of the Department of
the Treasury.
(h) Definitions.--In this section:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Relations and the
Committee on Banking, Housing, and Urban Affairs of the
Senate; and
(B) the Committee on Foreign Affairs and the
Committee on Financial Services of the House of
Representatives.
(2) Correspondent account; payable-through account.--The
terms ``correspondent account'' and ``payable-through account''
have the meanings given those terms in section 5318A of title
31, United States Code.
(3) Foreign financial institution.--The term ``foreign
financial institution'' has the meaning given that term in
section 561.308 of title 31, Code of Federal Regulations (or
any corresponding similar regulation or ruling).
(4) Humanitarian assistance.--The term ``humanitarian
assistance'' means assistance to meet humanitarian needs,
including needs for food, medicine, medical supplies, clothing,
and shelter.
(5) Knowingly.--The term ``knowingly'', with respect to
conduct, a circumstance, or a result, means that a person has
actual knowledge, or should have known, of the conduct, the
circumstance, or the result.
(6) United states person.--The term ``United States
person'' means--
(A) a United States citizen or an alien lawfully
admitted for permanent residence to the United States;
and
(B) an entity organized under the laws of the
United States or any jurisdiction within the United
States, including a foreign branch of such an entity.
SEC. 4. PROHIBITION ON IMPORT OF AND SANCTIONS WITH RESPECT TO GOODS
MADE WITH NORTH KOREAN LABOR.
(a) Prohibition on Import of Goods Made With North Korean Labor.--
(1) In general.--Except as provided in paragraph (2), any
significant goods, wares, articles, or merchandise mined,
produced, or manufactured wholly or in part by the labor of
nationals or citizens of the Democratic People's Republic of
Korea shall be deemed to be mined, produced, or manufactured,
as the case may be, by convict labor, forced labor, or
indentured labor under penal sanctions for purposes of section
307 of the Tariff Act of 1930 (19 U.S.C. 1307) and shall not be
entitled to entry at any of the ports of the United States.
(2) Exception.--The prohibition under paragraph (1) shall
not apply to goods, wares, articles, or merchandise if the
Commissioner of U.S. Customs and Border Protection finds, by
clear and convincing evidence, that the goods, wares, articles,
or merchandise were not produced with trafficked labor, convict
labor, forced labor, or indentured labor under penal sanctions.
(b) Sanctions With Respect to Persons That Use North Korean
Labor.--The President shall, pursuant to the International Emergency
Economic Powers Act (50 U.S.C. 1701 et seq.), block and prohibit all
transactions in property and interests in property of a person that the
President determines mines, produces, or manufactures goods, wares,
articles, or merchandise prohibited from entry into the United States
under subsection (a), if such property and interests in property are in
the United States, come within the United States, or are or come within
the possession or control of a United States person.
(c) Trafficked Labor Defined.--In this section, the term
``trafficked labor'' means labor or services procured through the
recruitment, harboring, transportation, provision, or obtaining of a
person through the use of force, fraud, or coercion for the purpose of
subjection to involuntary servitude, peonage, debt bondage, or slavery.
SEC. 5. MANDATORY DISCLOSURE OF INVESTMENTS IN THE DEMOCRATIC PEOPLE'S
REPUBLIC OF KOREA AND OTHER SANCTIONABLE ACTIVITIES.
(a) In General.--Not later than 270 days after the date of the
enactment of this Act, the Securities and Exchange Commission shall
prescribe regulations requiring each issuer to disclose annually,
beginning with the issuer's first fiscal year that begins after the
date on which those regulations are prescribed--
(1) any investments in the Democratic People's Republic of
Korea; and
(2) any other activities that may be subject to sanctions
under section 3 or 4.
(b) Issuer Defined.--In this section, the term ``issuer'' has the
meaning given that term in section 3(a) of the Securities Exchange Act
of 1934 (15 U.S.C. 78c(a)).
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