22-U.S.C.-2779A
§2779A – Prohibition On Incentive Payments
Pathway
Title 22 > Chapter 39 > Subchapter III > Section 2779a
Details
- Reference: Section 2779a
- Legend: §2779A – Prohibition On Incentive Payments
- USCode Year: 2013
Provision Content
(a) In general
No United States supplier of defense articles or services sold or licensed under this chapter or exported pursuant to a treaty referred to in section 2778(j)(1)(C)(i) of this title, nor any employee, agent, or subcontractor thereof, shall, with respect to the sale or export of any such defense article or defense service to a foreign country, make any incentive payments for the purpose of satisfying, in whole or in part, any offset agreement with that country.
(b) Civil penalties
Any person who violates the provisions of this section shall be subject to the imposition of civil penalties as provided for in this section.
(c) Presidential authority
In the enforcement of this section, the President is authorized to exercise the same powers concerning violations and enforcement and imposition of civil penalties which are conferred upon departments, agencies and officials by subsections (c), (d), (e), and (f) of section 11 of the Export Administration Act of 1979 [50 U.S.C. App. 2410(c), (d), (e), (f)], and section 12(a) of such Act [50 U.S.C. App. 2411(a)], subject to the same terms and conditions as are applicable to such powers under that Act [50 U.S.C. App. 2401 et seq.], except that section 11(c)(2)(B) of such Act shall not apply, and instead, as prescribed in regulations issued under this section, the Secretary of State may assess civil penalties for violations of this chapter and regulations prescribed thereunder and further may commence a civil action to recover such civil penalties, and except further that notwithstanding section 11(c) of that Act, the civil penalty for each violation of this section may not exceed $500,000 or five times the amount of the prohibited incentive payment, whichever is greater.
(d) Definitions
For purposes of this section—
(1) the term offset agreement means an agreement, arrangement, or understanding between a United States supplier of defense articles or defense services and a foreign country under which the supplier agrees to purchase or acquire, or to promote the purchase or acquisition by other United States persons of, goods or services produced, manufactured, grown, or extracted, in whole or in part, in that foreign country in consideration for the purchase by the foreign country of defense articles or defense services from the supplier;
(2) the term incentive payments means direct monetary compensation made by a United States supplier of defense articles or defense services or by any employee, agent or subcontractor thereof to any other United States person to induce or persuade that United States person to purchase or acquire goods or services produced, manufactured, grown, or extracted, in whole or in part, in the foreign country which is purchasing those defense articles or services from the United States supplier; and
(3) the term United States person means—
(A) an individual who is a national or permanent resident alien of the United States; and
(B) any corporation, business association, partnership, trust, or other juridical entity—
(i) organized under the laws of the United States or any State, the District of Columbia, or any territory or possession of the United States; or
(ii) owned or controlled in fact by individuals described in subparagraph (A) or by an entity described in clause (i).
(Pub. L. 90–629, ch. 3, §39A, as added Pub. L. 103–236, title VII, §733, Apr. 30, 1994, 108 Stat. 504; amended Pub. L. 106–113, div. B, §1000(a)(7) [div. B, title XII, §1246, title XIII, §1303], Nov. 29, 1999, 113 Stat. 1536, 1501A–502, 1501A–511; Pub. L. 111–266, title I, §103(d), Oct. 8, 2010, 124 Stat. 2799.)
References in Text
This chapter, referred to in subsecs. (a) and (c), was in the original this Act, meaning Pub. L. 90–629, Oct. 22, 1968, 82 Stat. 1321, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 2751 of this title and Tables.
The Export Administration Act of 1979, referred to in subsec. (c), is Pub. L. 96–72, Sept. 29, 1979, 93 Stat. 503, as amended, which is classified principally to section 2401 et seq. of Title 50, Appendix, War and National Defense. For complete classification of this Act to the Code, see Short Title note set out under section 2401 of Title 50, Appendix, and Tables.
Amendments
2010—Subsec. (a). Pub. L. 111–266 inserted or exported pursuant to a treaty referred to in section 2778(j)(1)(C)(i) of this title after under this chapter.
1999—Subsec. (a). Pub. L. 106–113, §1000(a)(7) [title XII, §1246(a)], inserted or licensed after sold and or export after sale.
Subsec. (c). Pub. L. 106–113, §1000(a)(7) [title XIII, §1303], inserted section 11(c)(2)(B) of such Act shall not apply, and instead, as prescribed in regulations issued under this section, the Secretary of State may assess civil penalties for violations of this chapter and regulations prescribed thereunder and further may commence a civil action to recover such civil penalties, and except further that after except that.
Subsec. (d)(3)(B)(ii). Pub. L. 106–113, §1000(a)(7) [title XII, §1246(b)], inserted or by an entity described in clause (i) after subparagraph (A).
Delegation of Functions
Functions of President under this section delegated to Secretary of State by Memorandum of President of the United States, July 26, 1994, 59 F.R. 40205, set out as a note under section 2370a of this title.
U.S. Encyclopedia of Law Coverage
22-U.S.C.-2767A in the Legal Encyclopedia: Foreign Relations
In this entry about 22-U.S.C.-2767A, find legal reference material, bibliographies and premiere content related to foreign relations in the American Encyclopedia of Law, presenting a comprehensive view of the United States foreign relations-specific issues, written by authorities in the field.
22-U.S.C.-2768 in the Legal Encyclopedia: Exports
In this entry about 22-U.S.C.-2768, find legal reference material, bibliographies and premiere content related to exports in the American Encyclopedia of Law, presenting a comprehensive view of the United States exports-specific issues, written by authorities in the field.
22-U.S.C.-2765 in the Legal Encyclopedia: Arms Control
In this entry about 22-U.S.C.-2765, find legal reference material, bibliographies and premiere content related to arms control in the American Encyclopedia of Law, presenting a comprehensive view of the United States arms control-specific issues, written by authorities in the field.
22-U.S.C.-2761 in the Legal Encyclopedia: Arms
In this entry about 22-U.S.C.-2761, find legal reference material, bibliographies and premiere content related to arms in the American Encyclopedia of Law, presenting a comprehensive view of the United States arms-specific issues, written by authorities in the field.
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