Sec. 733. PROHIBITION ON INCENTIVE PAYMENTS UNDER THE ARMS EXPORT CONTROL ACT
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## SEC. 733 PROHIBITION ON INCENTIVE PAYMENTS UNDER THE ARMS EXPORT CONTROL ACT The Arms Export Control Act (22 U.S.C. 2779) is amended by inserting after section 39 the following new section: > > ## “SEC. 39A.103 PROHIBITION ON INCENTIVE PAYMENTS > > > ### “(a) > > No United States supplier of defense articles or services sold under this Act, nor any employee, agent, or subcontractor thereof, shall, with respect to the sale 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. > > 10322 U.S.C. 2779a. > > > ### “(b) > > 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) > > 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 and section 12(a) of such Act, subject to the same terms and conditions as are applicable to such powers under that Act, except 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) > > 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).” > .
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Sec. 733
PROHIBITION ON INCENTIVE PAYMENTS UNDER THE ARMS EXPORT CONTROL ACT
Cite10322 USC 2779a
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