Sec. 4378. Prohibition on incentive payments
242 words·~1 min read·
/bill/113/hr/1793/ih/section-4378·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A United States person, or any employee, agent, or subcontractor thereof, may not, with respect to the sale or export of any 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 the country. Any person who violates the provisions of subsection
(a)shall be subject to the imposition of civil penalties as provided for in subsection (c). In providing for the enforcement of this section, the Secretary is authorized to exercise the same powers concerning violations and enforcement and imposition of civil penalties that are conferred upon Federal agencies and officials by subsections (c), (d), (e), and
(f)of section 11 of the Export Administration Act of 1979 and section 12(a) of such Act (as continued in effect under the International Emergency Economic Powers Act), subject to the same terms and conditions as are applicable to such powers under such Act, 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 may assess civil penalties for violations of this Act 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.