,,ii #aafth ,,congress #ast ,session ,s4 #aife ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,june #be1 #bjai,mr4 ,wicker 7for himself and ,ms4 ,sinema7 introduced the following bill2 which was read twice and referred to the ,committee on ,foreign ,relations ,a ,,bill ,to authorize actions with respect to foreign countries engaged in illicit trade in tobacco products or their precursors1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,combating the ,illicit ,trade in ,tobacco ,products ,act4 #b4 ,definitions ,in this ,act3 7#a7 ,appropriate congressional committees ,the term appropriate congressional committees means-- 7,a7 the ,committee on ,financial ,services1 the ,committee on ,foreign ,affairs1 and the ,committee on the ,judiciary of the ,house of ,representatives2 and 7,b7 the ,committee on ,banking1 ,housing1 and ,urban ,affairs1 the ,committee on ,foreign ,relations1 and the ,committee on the ,judiciary of the ,senate4 7#b7 ,foreign person ,the term foreign person means a person that is not a ,united ,states person4 7#c7 ,illicit trade in tobacco products or their precursors ,the term illicit trade in tobacco products or their precursors means any practice or conduct prohibited by law that relates to production1 shipment1 receipt1 possession1 distribution1 sale1 or purchase of tobacco products or their precursors1 including any practice or conduct intended to facilitate such activity4 7#d7 ,person ,the term person means an individual or entity4 7#e7 ,united ,states person ,the term ,united ,states person means-- 7,a7 a ,united ,states citizen or an alien lawfully admitted for permanent residence to the ,united ,states2 or 7,b7 an entity organized under the laws of the ,united ,states or of any jurisdiction within the ,united ,states1 including a foreign branch of such an entity4 #c4 ,findings ,congress makes the following findings3 7#a7 ,the illicit trade in tobacco products or their precursors is a multibillion dollar business that fuels organized crime1 fosters public corruption1 undermines public health goals1 and finances terrorist groups that threaten global security and stability4 7#b7 ,according to an estimate by the ,world ,health ,organization1 one in every #aj cigarettes smoked is illegal4 7#c7 ,the ,center for ,public ,integrity states1 while one #dj-;foot container of cigarettes 7containing #aj million sticks7 can be produced in ,china for just #ajj1jjj1 the street value of such a container smuggled into the ,united ,states is up to #b million44 7#d7 ,according to the ,international ,criminal ,police ,organization 7commonly known as ,interpol71 the trade in illicit cigarettes accounts for #aa4f percent of global consumption1 equaling #feg1jjj1jjj1jjj cigarettes a year4 7#e7 ,according to the ,department of ,state report entitled ,the ,global ,illicit ,trade in ,tobacco3 ,a ,threat to ,national ,security1 cigarette smuggling enables corruption and undermines good governance4 7#f7 ,according to that ,department of ,state report1 illicit trade in tobacco products or their precursors costs governments and taxpayers between #dj1jjj1jjj1jjj and #ej1jjj1jjj1jjj annually in tax revenues4 7#g7 ,according to that ,department of ,state report1 the illicit trade in tobacco products or their precursors facilitates other crimes and provides funding for additional criminal activities1 including money laundering1 bulk cash smuggling1 and the trafficking in humans1 weapons1 drugs1 antiquities1 diamonds1 and counterfeit goods4 7#h7 ,the report entitled ,illicit ,trade3 ,converging ,criminal ,networks by the ,organisation for ,economic ,co-operation and ,development stated that cigarettes present a high-profit margin and are among the most commonly traded products on the black market due to the relative ease of production and movement1 along with low detection rates and penalties4 7#i7 ,according to the ,department of ,state report entitled1 ,the ,global ,illicit ,trade in ,tobacco3 ,a ,threat to ,national ,security1 illicit trade in tobacco products or their precursors can be transnational1 with proceeds earned domestically and sent overseas to finance attacks against ,united ,states interests1 or earned domestically by foreign actors who can operate more easily from within the country4 7#aj7 ,the ,center for the ,analysis of ,terrorism reports that nearly #ae terrorist organizations throughout the world regularly have recourse in large proportions to smuggling and counterfeiting cigarettes to be financed1 in particular the ,pakistani ,taliban1 ,lashkar-,e-,taiba1 ,al-,qaida au ,maghreb ,islamique1 ,hezbollah1 ,hamas1 the ,revolutionary ,armed ,forces of ,colombia1 the ,kurdistan ,workers' ,party1 ,euskadi ,ta ,askatasuna1 and the ,irish ,republican ,army4 #d4 ,designation of and actions with respect to foreign countries engaged in illicit trade in tobacco products or their precursors 7a7 ,designation ,not later than one year after the date of the enactment of this ,act1 and annually thereafter1 the ,secretary of ,state1 in consultation with the ,secretary of ,defense1 the ,attorney ,general1 and the ,secretary of the ,treasury1 shall-- 7#a7 review the status of illicit trade in tobacco products or their precursors in each foreign country to determine whether-- 7,a7 the country is a major source1 point of transit1 or consumer of illicit tobacco products or their precursors2 or 7,b7 7i7 the country meets the criteria of subparagraph 7,a72 and 7ii7 the government of the country has actively engaged in or knowingly profited from the illicit trade in tobacco products or their precursors2 7#b7 designate each foreign country that-- 7,a7 meets the criteria of subparagraph 7,a7 of paragraph 7#a7 as a focus country for illicit trade in tobacco products or their precursors for purposes of providing assistance to the country under subsection 7b72 and 7,b7 meets the criteria of subparagraph 7,b7 of paragraph 7#a7 as a country of concern for illicit trade in tobacco products or their precursors for purposes of withholding ,united ,states development assistance and security assistance to the country under subsection 7c72 and 7#c7 submit to the appropriate congressional committees a report that includes-- 7,a7 a list that identifies each foreign country designated as a focus country for illicit trade in tobacco products or their precursors under paragraph 7#b77;,a72 and 7,b7 a list that identifies each foreign country designated as a country of concern for illicit trade in tobacco products or their precursors under paragraph 7#b77;,b74 7b7 ,assistance to focus countries 7#a7 ,law enforcement professional training ,the ,secretary of ,state1 in coordination with the heads of other relevant ,united ,states departments and agencies and nongovernmental organizations where appropriate1 is authorized to provide assistance to foreign countries designated as focus countries for illicit trade in tobacco products or their precursors under subsection 7a77#b77;,a7 to improve the effectiveness of law enforcement to combat the illicit trade in tobacco products or their precursors4 7#b7 ,investigative capacity building ,the ,secretary of ,state1 in coordination with the heads of other relevant ,united ,states departments and agencies1 is authorized to establish and carry out programs to increase the capacity of law enforcement and customs and border security offices in foreign countries designated as focus countries for illicit trade in tobacco products or their precursors under subsection 7a77#b77;,a74 7c7 ,prohibition on assistance to countries of concern 7#a7 ,in general ,the ,secretary of ,state may not provide development assistance or security assistance to foreign countries designated as countries of concern for illicit trade in tobacco products or their precursors under subsection 7a77#b77;,b74 7#b7 ,waiver ,the ,secretary of ,state may waive the application of paragraph 7#a7 with respect to a foreign country described in paragraph 7#a7 if the ,secretary determines and certifies to the appropriate congressional committees that such waiver is in the national security interests of the ,united ,states4 7#c7 ,definitions ,in this subsection3 7,a7 ,development assistance ,the term development assistance means assistance authorized under-- 7i7 chapter #a or #aj of part ,i of the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #baea et seq4 or #bbic et seq472 or 7ii7 chapter #d of part ,,ii of such ,act 7#bb ,u4,s4,c4 #bcdf et seq474 7,b7 ,security assistance ,the term security assistance means assistance authorized under part ,,ii of the ,foreign ,assistance ,act of #aifa 7#bb ,u4,s4,c4 #bcja et seq474 #e4 ,imposition of sanctions with respect to foreign persons responsible for illicit trade in tobacco products or their precursors 7a7 ,in general ,the ,president is authorized to impose the sanctions described in subsection 7b7 with respect to any foreign person the ,president determines1 based on credible evidence-- 7#a7 is responsible for illicit trade in tobacco products or their precursors2 7#b7 acted as an agent of or on behalf of a foreign person in a matter relating to an activity described in paragraph 7#a72 7#c7 is a government official1 or a senior associate of such an official1 that is responsible for1 or complicit in1 ordering1 controlling1 or otherwise directing1 the illicit trade in tobacco products or their precursors1 including acts of significant corruption1 bribery1 or the facilitation or transfer of the proceeds of corruption to foreign jurisdictions2 or 7#d7 has materially assisted1 sponsored1 or provided financial1 material1 or technological support for1 or goods or services in support of1 an activity described in paragraph 7#a71 7#b71 or 7#c74 7b7 ,sanctions described ,the sanctions described in this subsection are the following3 7#a7 ,inadmissibility to ,united ,states ,in the case of a foreign person who is an individual-- 7,a7 ineligibility to receive a visa to enter the ,united ,states or to be admitted to the ,united ,states2 or 7,b7 if the individual has been issued a visa or other documentation1 revocation1 in accordance with section #bba7;i7 of the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #abja7;i771 of the visa or other documentation4 7#b7 ,blocking of property 7,a7 ,in general ,the blocking1 in accordance with the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja et seq471 of all transactions in all property and interests in property of a foreign person if such property and interests in property are in the ,united ,states1 come within the ,united ,states1 or are or come within the possession or control of a ,united ,states person4 7,b7 ,inapplicability of national emergency requirement ,the requirements of section #bjb of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja7 shall not apply for purposes of this section4 7,c7 ,exception relating to importation of goods 7i7 ,in general ,the authority to block and prohibit all transactions in all property and interests in property under subparagraph 7,a7 shall not include the authority to impose sanctions on the importation of goods4 7ii7 ,good defined ,in this subparagraph1 the term good means any article1 natural or man-made substance1 supply or manufactured product1 including inspection and test equipment1 and excluding technical data4 7c7 ,consideration of certain information in imposing sanctions ,in determining whether to impose sanctions under subsection 7a71 the ,president shall consider-- 7#a7 information provided by the chairperson and ranking member of each of the appropriate congressional committees2 and 7#b7 credible information obtained by other countries and nongovernmental organizations that monitor violations of human rights4 7d7 ,requests by chairperson and ranking member of appropriate congressional committees ,not later than #abj days after receiving a written request from the chairperson and ranking member of one of the appropriate congressional committees with respect to whether a foreign person has engaged in an activity described in subsection 7a71 the ,president shall-- 7#a7 determine if that person has engaged in such an activity2 and 7#b7 submit to the chairperson and ranking member of that committee with respect to that determination a report that includes-- 7,a7 a statement of whether or not the ,president imposed or intends to impose sanctions with respect to the person2 and 7,b7 if the ,president imposed or intends to impose sanctions1 a description of those sanctions4 7e7 ,exception ,to comply with ,united ,nations ,headquarters ,agreement and law enforcement objectives ,sanctions under subsection 7b77#a7 shall not apply to an individual if admitting the individual into the ,united ,states would further important law enforcement objectives or is necessary to permit the ,united ,states to comply with the ,agreement regarding the ,headquarters of the ,united ,nations1 signed at ,lake ,success ,june #bf1 #aidg1 and entered into force ,november #ba1 #aidg1 between the ,united ,nations and the ,united ,states1 or other applicable international obligations of the ,united ,states4 7f7 ,enforcement of blocking of property ,a person that violates1 attempts to violate1 conspires to violate1 or causes a violation of subsection 7b77#b7 or any regulation1 license1 or order issued to carry out subsection 7b77#b7 shall be subject to the penalties set forth in subsections 7b7 and 7c7 of section #bjf of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agje7 to the same extent as a person that commits an unlawful act described in subsection 7a7 of that section4 7g7 ,termination of sanctions ,the ,president may terminate the application of sanctions under this section with respect to a foreign person if the ,president determines and reports to the appropriate congressional committees not later than #ae days before the termination of the sanctions that-- 7#a7 credible information exists that the person did not engage in the activity for which sanctions were imposed2 7#b7 the person has been prosecuted appropriately for the activity for which sanctions were imposed2 7#c7 the person has credibly demonstrated a significant change in behavior1 has paid an appropriate consequence for the activity for which sanctions were imposed1 and has credibly committed to not engage in an activity described in subsection 7a7 in the future2 or 7#d7 the termination of the sanctions is in the vital national security interests of the ,united ,states4 7h7 ,regulatory authority ,the ,president shall issue such regulations1 licenses1 and orders as are necessary to carry out this section4 7i7 ,identification of sanctionable foreign persons ,the ,assistant ,secretary of ,state for ,international ,narcotics and ,law ,enforcement ,affairs1 in consultation with the ,assistant ,secretary of ,state for ,consular ,affairs and other bureaus of the ,department of ,state1 as appropriate1 is authorized to submit to the ,secretary of ,state1 for review and consideration1 the names of foreign persons who may meet the criteria described in subsection 7a74 #f4 ,reports to ,congress 7a7 ,in general ,not later than #abj days after the date of the enactment of this ,act and annually thereafter1 the ,president shall submit to the appropriate congressional committees a report that includes-- 7#a7 a list of each foreign person with respect to which the ,president imposed sanctions pursuant to section #e during the year preceding the submission of the report2 7#b7 a description of the type of sanctions imposed with respect to each such foreign person2 7#c7 the number of foreign persons with respect to which the ,president-- 7,a7 imposed sanctions under section #e during that year2 and 7,b7 terminated sanctions under section #e during that year2 7#d7 the dates on which such sanctions were imposed or terminated1 as the case may be2 7#e7 the reasons for imposing or terminating such sanctions2 and 7#f7 a description of the efforts of the ,president to encourage the governments of other countries to impose sanctions that are similar to the sanctions authorized by section #e4 7b7 ,form of report 7#a7 ,in general ,each report required by subsection 7a7 shall be submitted in unclassified form1 but may include a classified annex4 7#b7 ,exception ,the name of a foreign person to be included in the list required by subsection 7a77#a7 may be submitted in the classified annex authorized by paragraph 7#a7 only if the ,president-- 7,a7 determines that it is vital for the national security interests of the ,united ,states to do so2 7,b7 uses the annex in a manner consistent with congressional intent and the purposes of this ,act2 and 7,c7 not later than #ae days before submitting the name in a classified annex1 provides to the appropriate congressional committees notice of1 and a justification for1 including the name in the classified annex despite any publicly available credible information indicating that the person engaged in an activity described in section #e7;a74 7c7 ,public availability 7#a7 ,in general ,the unclassified portion of the report required by subsection 7a7 shall be made available to the public1 including through publication in the ,federal ,register4 7#b7 ,nonapplicability of confidentiality requirement with respect to visa records ,the ,president shall publish the list required by subsection 7a77#a7 without regard to the requirements of section #bbb7;f7 of the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #abjb7;f77 with respect to confidentiality of records pertaining to the issuance or refusal of visas or permits to enter the ,united ,states4