Sec. 7114. PREFERENCE FOR UNITED STATES INDUSTRY
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## SEC. 7114 PREFERENCE FOR UNITED STATES INDUSTRY Section 308 of the Homeland Security Act of 2002 (6 U.S.C. 188) is amended by adding at the end the following new subsection: > > ### “(d) Preference for United States Industry > > > #### “(1) Definitions > > In this subsection: > > > ##### “(A) Country of concern > > The term ‘country of concern’ means a country that— > > > ###### “(i) > > is a covered nation, as such term is defined in section 4872(d) of title 10, United States Code; or > > > ###### “(ii) > > the Secretary determines is engaged in conduct that is detrimental to the national security of the United States. > > > ##### “(B) Nonprofit organization; small business firm; subject invention > > The terms ‘nonprofit organization’, ‘small business firm’, and ‘subject invention’ have the meanings given such terms in section 201 of title 35, United States Code. > > > ##### “(C) Manufactured substantially in the united states > > The term ‘manufactured substantially in the United States’ means an item is a domestic end product. > > > ##### “(D) Domestic end product > > The term ‘domestic end product’ has the meaning given such term in section 25.003 of title 48, Code of Federal Regulations, or any successor thereto. > > > #### “(3) Waivers > > > ##### “(A) In general > > Subject to subparagraph (B), in individual cases, the requirements under section 204 of title 35, United States Code, may be waived by the Secretary upon a showing by the small business firm, nonprofit organization, or assignee that reasonable but unsuccessful efforts have been made to grant licenses on similar terms to potential licensees that would be likely to manufacture substantially in the United States or that under the circumstances domestic manufacture is not commercially feasible. > > > ##### “(B) Conditions on waivers granted by department > > > ###### “(i) Before grant of waiver > > Before granting a waiver under subparagraph (A), the Secretary shall comply with the procedures developed and implemented by the Department pursuant to section 70923(b)(2) of the Build America, Buy America Act (enacted as subtitle A of title IX of division G of Public Law 117-58). > > > ###### “(ii) Prohibition on granting certain waivers > > The Secretary may not grant a waiver under subparagraph
(A)if, as a result of such waiver, products embodying the applicable subject invention, or produced through the use of the applicable subject invention, would be manufactured substantially in a country of concern.” > .
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