50 USC 1709 - Imposition of sanctions with respect to theft of trade secrets of United States persons

U.S Code last checked for updates: May 02, 2024

§ 1709.

Imposition of sanctions with respect to theft of trade secrets of United States persons

(a)

Report required

(1)

In general

Not later than 180 days after January 5, 2023, and not less frequently than annually thereafter, the President shall submit to the appropriate congressional committees a report—

(A)

identifying any foreign person the President determines, during the period specified in paragraph (2)—

(i)

has knowingly engaged in, or benefitted from, significant theft of trade secrets of United States persons, if the theft of such trade secrets occurred on or after January 5, 2023, and is reasonably likely to result in, or has materially contributed to, a significant threat to the national security, foreign policy, or economic health or financial stability of the United States;

(ii)

has provided significant financial, material, or technological support for, or goods or services in support of or to benefit significantly from, such theft;

(iii)

is an entity that is owned or controlled by, or that has acted or purported to act for or on behalf of, directly or indirectly, any foreign person identified under clause (i) or (ii); or

(iv)

is a chief executive officer or member of the board of directors of any foreign entity identified under clause (i) or (ii);

(B)

describing the nature, objective, and outcome of the theft of trade secrets each foreign person described in subparagraph (A)(i) engaged in or benefitted from; and

(C)

assessing whether any chief executive officer or member of the board of directors described in clause (iv) of subparagraph (A) engaged in, or benefitted from, activity described in clause (i) or (ii) of that subparagraph.

(2)

Period specified

The period specified in this paragraph is—

(A)

in the case of the first report required by paragraph (1), the period beginning on Janaury 5, 2023, and ending on the date on which the report is required to be submitted; and

(B)

in the case of each subsequent report required by paragraph (1), the one-year period preceding the date on which the report is required to be submitted.

(3)

Form of report

(b)

Authority to impose sanctions

(1)

Sanctions applicable to entities

In the case of a foreign entity identified under subparagraph (A) of subsection (a)(1) in the most recent report submitted under that subsection, the President shall impose 5 or more of the following:

(A)

Blocking of property

(B)

Inclusion on entity list

(C)

Export-Import bank assistance for exports to sanctioned persons

(D)

Loans from United States financial institutions

(E)

Loans from international financial institutions

(F)

Prohibitions on financial institutions

The following prohibitions may be imposed against the entity if the entity is a financial institution:

(i)

Prohibition on designation as primary dealer

(ii)

Prohibition on service as a repository of government funds

The imposition of either sanction under clause (i) or (ii) shall be treated as one sanction for purposes of this paragraph, and the imposition of both such sanctions shall be treated as 2 sanctions for purposes of this paragraph.

(G)

Procurement sanction

(H)

Foreign exchange

(I)

Banking transactions

(J)

Ban on investment in equity or debt of sanctioned person

(K)

Exclusion of corporate officers

(L)

Sanctions on principal executive officers

(2)

Sanctions applicable to individuals

In the case of an alien identified under subparagraph (A) of subsection (a)(1) in the most recent report submitted under that subsection, the following shall apply:

(A)

Blocking of property

(B)

Ineligibility for visas, admission, or parole

(i)

Visas, admission, or parole

An alien described in subparagraph (A) of subsection (a)(1) is—

(I)

inadmissible to the United States;

(II)

ineligible to receive a visa or other documentation to enter the United States; and

(III)

otherwise ineligible to be admitted or paroled into the United States or to receive any other benefit under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.).

(ii)

Current visas revoked

(I)

In general

(II)

Immediate effect

A revocation under subclause (I) shall—

(aa)

take effect pursuant to section 221(i) of the Immigration and Nationality Act (8 U.S.C. 1201(i)); and

(bb)

cancel any other valid visa or entry documentation that is in the alien’s possession.

(c)

National interest waiver

The President may waive the imposition of sanctions under subsection (b) with respect to a person if the President—

(1)

determines that such a waiver is in the national interests of the United States; and

(2)

not more than 15 days after issuing the waiver, submits to the appropriate congressional committees a notification of the waiver and the reasons for the waiver.

(d)

Implementation; penalties

(1)

Implementation

(2)

Penalties

(e)

Exceptions

(1)

Intelligence activities

(2)

Law enforcement activities

(3)

Exception to comply with international agreements

(4)

Exception relating to importation of goods

(A)

In general

(B)

Good defined

(f)

Sunset

(g)

Definitions

In this section:

(1)

Admission; admitted; alien; lawfully admitted for permanent residence

(2)

Appropriate congressional committees

The term “appropriate congressional committees” means—

(A)

the Committee on Banking, Housing, and Urban Affairs and the Committee on Foreign Relations of the Senate; and

(B)

the Committee on Financial Services and the Committee on Foreign Affairs of the House of Representatives.

(3)

Entity

(4)

Export Administration Regulations

(5)

Foreign entity

(6)

Foreign person

(7)

Knowingly

(8)

Person

(9)

Trade secret

(10)

United States person

The term “United States person” means—

(A)

a United States citizen or an alien lawfully admitted for permanent residence to the United States;

(B)

an entity organized under the laws of the United States or of any jurisdiction within the United States, including a foreign branch of such an entity; or

(C)

any person in the United States.

(Pub. L. 117–336, § 2, Jan. 5, 2023, 136 Stat. 6147.)

cite as: 50 USC 1709