which were the basis of that determination and if that affiliate is controlled in fact by that foreign person. (b) CONSULTATIONS WITH AND ACTIONS BY FOREIGN GOVERNMENT OF JURISDICTION.— (1) CONSULTATIONS.-If the President makes the determinations described in subsection (a)(1) with respect to a foreign person, the Congress urges the President to initiate consultations immediately with the government with primary jurisdiction over that foreign person with respect to the imposition of sanctions pursuant to this section. (2) ACTIONS BY GOVERNMENT OF JURISDICTION.-In order to pursue such consultations with that government, the President may delay imposition of sanctions pursuant to this section for a period of up to 90 days. Following these consultations, the President shall impose sanctions unless the President determines and certifies to the Congress that that government has taken specific and effective actions, including appropriate penalties, to terminate the involvement of the foreign person in the activities described in subsection (a)(1). The President may delay imposition of sanctions for an additional period of up to 90 days if the President determines and certifies to the Congress that that government is in the process of taking the actions described in the preceding sentence. (3) REPORT TO CONGRESS.-The President shall report to the Congress, not later than 90 days after making a determination under subsection (a)(1), on the status of consultations with the appropriate government under this subsection, and the basis for any determination under paragraph (2) of this subsection that such government has taken specific corrective actions. (c) SANCTIONS. (1) DESCRIPTION OF SANCTIONS.-The sanctions to be imposed pursuant to subsection (a)(1) are, except as provided in paragraph (2) of this subsection, the following: (A) PROCUREMENT SANCTION.-The United States Government shall not procure, or enter into any contract for the procurement of, any goods or services from any person described in subsection (a)(3). (B) IMPORT SANCTIONS.-The importation into the United States of products produced by any person described in subsection (a)(3) shall be prohibited. (2) EXCEPTIONS.-The President shall not be required to apply or maintain sanctions under this section (A) in the case of procurement of defense articles or defense services— (i) under existing contracts or subcontracts, including the exercise of options for production quantities to satisfy United States operational military requirements; (ii) if the President determines that the person or other entity to which the sanctions would otherwise be applied is a sole source supplier of the defense articles or services, that the defense articles or services are es sential, and that alternative sources are not readily or reasonably available; or (iii) if the President determines that such articles or services are essential to the national security under defense coproduction agreements; (B) to products or services provided under contracts entered into before the date on which the President publishes his intention to impose sanctions; (C) to (i) spare parts, (ii) component parts, but not finished products, essential to United States products or production, or (iii) routine servicing and maintenance of products, to the extent that alternative sources are not readily or reasonably available; (D) to information and technology essential to United States products or production; or (E) to medical or other humanitarian items. (d) TERMINATION OF SANCTIONS.-The sanctions imposed pursuant to this section shall apply for a period of at least 12 months following the imposition of sanctions and shall cease to apply thereafter only if the President determines and certifies to the Congress that reliable information indicates that the foreign person with respect to which the determination was made under subsection (a)(1) has ceased to aid or abet any foreign government, project, or entity in its efforts to acquire chemical or biological weapons capability as described in that subsection. (e) Waiver.— (1) CRITERION FOR WAIVER.-The President may waive the application of any sanction imposed on any person pursuant to this section, after the end of the 12-month period beginning on the date on which that sanction was imposed on that person, if the President determines and certifies to the Congress that such waiver is important to the national security interests of the United States. (2) NOTIFICATION OF AND REPORT TO CONGRESS.-If the President decides to exercise the waiver authority provided in paragraph (1), the President shall so notify the Congress not less than 20 days before the waiver takes effect. Such notification shall include a report fully articulating the rationale and circumstances which led the President to exercise the waiver authority. (f) DEFINITION of Foreign PERSON.-For the purposes of this secfion, the term "foreign person" means (1) an individual who is not a citizen of the United States or an alien admitted for permanent residence to the United States; or (2) a corporation, partnership, or other entity which is created or organized under the laws of a foreign country or which has its principal place of business outside the United States. CHAPTER 9-TRANSFER OF CERTAIN CFE TREATY- SEC. 91.232 PURPOSE. The purpose of this chapter is to authorize the President to support, consistent with the CFE Treaty, a NATO equipment transfer program that will (1) enhance NATO's forces, (2) increase NATO standardization and interoperability, and (3) better distribute defense burdens within the NATO alli ance. SEC. 92.233 CFE TREATY OBLIGATIONS. The authorities provided in this chapter shall be exercised consistent with the obligations incurred by the United States in connection with the CFE Treaty. SEC. 93.234 AUTHORITIES. (a)235 GENERAL AUTHORITY.-The President may transfer to any NATO/CFE country, in accordance with NATO plans, defense articles (1) that are battle tanks, armoured combat vehicles, or artillery included within the CFE Treaty's definition of "conventional armaments and equipment limited by the Treaty"; (2) that were, as of the date of signature of the CFE Treaty, in the stocks of the Department of Defense and located in the CFE Treaty's area of application; and (3) that the President determines are not needed by United States military forces within the CFE Treaty's area of application. (b) ACCEPTANCE OF NATO ASSISTANCE IN ELIMINATING DIRECT COSTS OF TRANSFERS.-In order to eliminate direct costs of facilitating transfers of defense articles under subsection (a), the United States may utilize services provided by NATO or any NATO/CFE country, including inspection, repair, or transportation services with respect to defense articles so transferred. (c) ACCEPTANCE OF NATO ASSISTANCE IN MEETING CERTAIN UNITED STATES OBLIGATIONS.-In order to facilitate United States compliance with the CFE Treaty-mandated obligations for destruction of conventional armaments and equipment limited by the CFE Treaty, the United States may utilize services or funds provided by NATO or any NATO/CFE country. (d) AUTHORITY TO TRANSFER ON A GRANT BASIS.-Defense articles may be transferred under subsection (a) without cost to the recipient country. 231 Sec. 2 of the Conventional Forces in Europe Treaty Implementation Act of 1991 (Public Law 102-228; 105 Stat. 1691) added chapter 9, secs. 91-95. 232 22 U.S.C. 2799. 233 22 U.S.C. 2799a. 234 22 U.S.C. 2799b. 235 In a Memorandum of February 13, 1992, the President delegated "to the Secretary of Defense the functions vested in me by section 93(a) and section 94 of the Arms Export Control Act, as amended ('the Act'), and to the Secretary of State the functions vested in me by section 93(f) of the Act. Consistent with section 2 of the Act, transfers of defense articles under section 93(a) shall be subject to the policy direction of the Secretary of State, including the determination of whether such transfers shall occur." (57 F.R. 6663; February 27, 1992). sential, and that alternative sources are not readily or reasonably available; or (iii) if the President determines that such articles or services are essential to the national security under defense coproduction agreements; (B) to products or services provided under contracts entered into before the date on which the President publishes his intention to impose sanctions; (C) to (i) spare parts, (ii) component parts, but not finished products, essential to United States products or production, or (iii) routine servicing and maintenance of products, to the extent that alternative sources are not readily or reasonably available; (D) to information and technology essential to United States products or production; or (E) to medical or other humanitarian items. (d) TERMINATION OF SANCTIONS.-The sanctions imposed pursuant to this section shall apply for a period of at least 12 months following the imposition of sanctions and shall cease to apply thereafter only if the President determines and certifies to the Congress that reliable information indicates that the foreign person with respect to which the determination was made under subsection (a)(1) has ceased to aid or abet any foreign government, project, or entity in its efforts to acquire chemical or biological weapons capability as described in that subsection. (e) WAIVER.— (1) CRITERION for waiver.-The President may waive the application of any sanction imposed on any person pursuant to this section, after the end of the 12-month period beginning on the date on which that sanction was imposed on that person, if the President determines and certifies to the Congress that such waiver is important to the national security interests of the United States. (2) NOTIFICATION OF AND Report to conGRESS.-If the President decides to exercise the waiver authority provided in paragraph (1), the President shall so notify the Congress not less than 20 days before the waiver takes effect. Such notification shall include a report fully articulating the rationale and circumstances which led the President to exercise the waiver authority. (f) DEFINITION OF FOREIGN PERSON.-For the purposes of this section, the term "foreign person" means (1) an individual who is not a citizen of the United States or an alien admitted for permanent residence to the United States; or (2) a corporation, partnership, or other entity which is created or organized under the laws of a foreign country or which has its principal place of business outside the United States. CHAPTER 9-TRANSFER OF CERTAIN CFE TREATY- SEC. 91.232 PURPOSE. The purpose of this chapter is to authorize the President to support, consistent with the CFE Treaty, a NATO equipment transfer program that will (1) enhance NATO's forces, (2) increase NATO standardization and interoperability, and (3) better distribute defense burdens within the NATO alli ance. SEC. 92.233 CFE TREATY OBLIGATIONS. The authorities provided in this chapter shall be exercised consistent with the obligations incurred by the United States in connection with the CFE Treaty. SEC. 93.234 AUTHORITIES. (a)235 GENERAL AUTHORITY.-The President may transfer to any NATO/CFE country, in accordance with NATO plans, defense articles (1) that are battle tanks, armoured combat vehicles, or artillery included within the CFE Treaty's definition of "conventional armaments and equipment limited by the Treaty"; (2) that were, as of the date of signature of the CFE Treaty, in the stocks of the Department of Defense and located in the CFE Treaty's area of application; and (3) that the President determines are not needed by United States military forces within the CFE Treaty's area of application. (b) ACCEPTANCE OF NATO ASSISTANCE IN ELIMINATING DIRECT COSTS OF TRANSFERS.-In order to eliminate direct costs of facilitating transfers of defense articles under subsection (a), the United States may utilize services provided by NATO or any NATO/CFE country, including inspection, repair, or transportation services with respect to defense articles so transferred. (c) ACCEPTANCE OF NATO ASSISTANCE IN MEETING CERTAIN UNITED STATES OBLIGATIONS.-In order to facilitate United States compliance with the CFE Treaty-mandated obligations for destruction of conventional armaments and equipment limited by the CFE Treaty, the United States may utilize services or funds provided by NATO or any NATO/CFE country. (d) AUTHORITY TO TRANSFER ON A GRANT BASIS.-Defense articles may be transferred under subsection (a) without cost to the recipient country. 231 Sec. 2 of the Conventional Forces in Europe Treaty Implementation Act of 1991 (Public Law 102-228; 105 Stat. 1691) added chapter 9, secs. 91-95. 232 22 U.S.C. 2799. 233 22 U.S.C. 2799a. 234 22 U.S.C. 2799b. 235 In a Memorandum of February 13, 1992, the President delegated "to the Secretary of Defense the functions vested in me by section 93(a) and section 94 of the Arms Export Control Act, as amended ('the Act'), and to the Secretary of State the functions vested in me by section 93(f) of the Act. Consistent with section 2 of the Act, transfers of defense articles under section 93(a) shall be subject to the policy direction of the Secretary of State, including the determination of whether such transfers shall occur." (57 F.R. 6663; February 27, 1992). |