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22 U.S.C. § 2779a — Prohibition on incentive payments
Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** No United States supplier of defense articles or services sold or licensed under this chapter or exported pursuant to a treaty referred to in [section 2778(j)(1)(C)(i) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2778/j/1/C/i&num=0&edition=prelim), nor any employee, agent, or subcontractor thereof, shall, with respect to the sale or export 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.
**(b) Civil penalties** 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) Presidential authority** 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 11 See References in Text note below. of the Export Administration Act of 1979, and section 12(a) 1 of such Act, subject to the same terms and conditions as are applicable to such powers under that 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 of State may assess civil penalties for violations of this chapter 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 paymen
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Source file: Laws/federal/codes/united-states-code/title-22/section-2779a-prohibition-on-incentive-payments--fb931ce7ce.md
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Source location: Title 22, Chapter 39, § 2779a; chapter-039-arms-export-control.md
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**(a) In general** No United States supplier of defense articles or services sold or licensed under this chapter or exported pursuant to a treaty referred to in [section 2778(j)(1)(C)(i) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2778/j/1/C/i&num=0&edition=prelim), nor any employee, agent, or subcontractor thereof, shall, with respect to the sale or export 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.
**(b) Civil penalties** 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) Presidential authority** 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 11 See References in Text note below. of the Export Administration Act of 1979, and section 12(a) 1 of such Act, subject to the same terms and conditions as are applicable to such powers under that 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 of State may assess civil penalties for violations of this chapter 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.
**(d) Definitions** 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) or by an entity described in clause (i).
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Prohibition** None of the funds made available to carry out this Act, the Foreign Assistance Act of 1961 [[22 U.S.C. 2151](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2151&num=0&edition=prelim) et seq.], or the Arms Export Control Act [[22 U.S.C. 2751](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2751&num=0&edition=prelim) et seq.] may be provided to a government or any agency or instrumentality thereof, if the government of such country (other than a country described if 11 So in original. Probably should be “in”. subsection (d))—
(1) has on or after January 1, 1956—
(A) nationalized or expropriated the property of any United States person,
(B) repudiated or nullified any contract with any United States person, or
(C) taken any other action (such as the imposition of discriminatory taxes or other exactions) which has the effect of seizing ownership or control of the property of any United States person, and
(2) has not, within the period specified in subsection (c), either—
(A) returned the property,
(B) provided adequate and effective compensation for such property in convertible foreign exchange or other mutually acceptable compensation equivalent to the full value thereof, as required by international law,
(C) offered a domestic procedure providing prompt, adequate and effective compensation in accordance with international law, or
(D) submitted the dispute to arbitration under the rules of the Convention for the Settlement of Investment Disputes or other mutually agreeable binding international arbitration procedure.
**(b) Other actions** The President shall instruct the United States Executive Directors of each multilateral development bank and international financial inst
Source: Supplied U.S. Code snapshot — release unconfirmed · 22 U.S.C. § 2370a
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Determination by the President** The President, subject to subsection (c), shall apply sanctions under subsection (b) for a period of not less than 2 years and not more than 5 years, if the President determines that—
(1) a foreign person has violated any regulation issued by a country to control exports for national security purposes pursuant to the agreement of the group known as the Coordinating Committee, and
(2) such violation has resulted in substantial enhancement of Soviet and East bloc capabilities in submarine or antisubmarine warfare, ballistic or antiballistic missile technology, strategic aircraft, command, control, communications and intelligence, or other critical technologies as determined by the President, on the advice of the National Security Council, to represent a serious adverse impact on the strategic balance of forces.
The President shall notify the Congress of each action taken under this section. This section, except subsections (h) and (j), applies only to violations that occur after August 23, 1988.
**(b) Sanctions** The sanctions referred to in subsection (a) shall apply to the foreign person committing the violation, as well as to any parent, affiliate, subsidiary, and successor entity of the foreign person, and, except as provided in subsection (c), are as follows:
(1) a prohibition on contracting with, and procurement of products and services from, a sanctioned person, by any department, agency, or instrumentality of the United States Government, and
(2) a prohibition on importation into the United States of all products produced by a sanctioned person.
**(c) Exceptions** The President shall not apply sanctions under this section—
(1) in the case of procurement of defense articles or defense services—
(A) under existing con
Source: Supplied U.S. Code snapshot — release unconfirmed · 50 U.S.C. § 4611
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Federal law — U.S. Code and appendices · legal_authorities
As declared by the Congress in the Arms Control and Disarmament Act [[22 U.S.C. 2551](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section2551&num=0&edition=prelim) et seq.], an ultimate goal of the United States continues to be a world which is free from the scourge of war and the dangers and burdens of armaments; in which the use of force has been subordinated to the rule of law; and in which international adjustments to a changing world are achieved peacefully. In furtherance of that goal, it remains the policy of the United States to encourage regional arms control and disarmament agreements and to discourage arms races.
Source: Supplied U.S. Code snapshot — release unconfirmed · 22 U.S.C. § 2751
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Report required**
(1) **In general** — The President shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives, a detailed annual report on the impact of offsets on the defense preparedness, industrial competitiveness, employment, and trade of the United States.
(2) **Duties of the Secretary of Commerce** — The Secretary of Commerce (hereafter in this subsection referred to as the “Secretary”) shall—
(A) prepare the report required by paragraph (1);
(B) consult with the Secretary of Defense, the Secretary of the Treasury, the Secretary of State, and the United States Trade Representative in connection with the preparation of such report; and
(C) function as the President’s Executive Agent for carrying out this section.
**(b) Interagency studies and related data**
(1) **Purpose of report** — Each report required under subsection (a) shall identify the cumulative effects of offset agreements on—
(A) the full range of domestic defense productive capability (with special attention paid to the firms serving as lower-tier subcontractors or suppliers); and
(B) the domestic defense technology base as a consequence of the technology transfers associated with such offset agreements.
(2) **Use of data** — Data developed or compiled by any agency while conducting any interagency study or other independent study or analysis shall be made available to the Secretary to facilitate the execution of the Secretary’s responsibilities with respect to trade offset and countertrade policy development.
**(c) Notice of offset agreements**
(1) **In general** — If a United States firm enters into a contract for the sale of a weapon system or defense-related item to a foreig
Source: Supplied U.S. Code snapshot — release unconfirmed · 50 U.S.C. § 4582
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Federal law — U.S. Code and appendices · legal_authorities
Page 1264
TITLE 22—FOREIGN RELATIONS AND INTERCOURSE
§ 2779a
1 See References in Text note below.
Executive Documents
DELEGATION OF FUNCTIONS
For delegation of functions of the President under
subsec. (b) of this section, with certain conditions, see
section 1(o) of Ex. Ord. No. 13637, Mar. 8, 2013, 78 F.R.
16130, set out as a note under section 2751 of this title.
Functions were previously delegated by Ex. Ord. No.
11958, which was formerly set out as a note under sec-
tion 2751 of this title and was revoked, subject to a sav-
ings provision, by section 4 of Ex. Ord. No. 13637.
§ 2779a. Prohibition on incentive payments
(a) In general
No United States supplier of defense articles
or services sold or licensed under this chapter or
exported pursuant to a treaty referred to in sec-
tion 2778(j)(1)(C)(i) of this title, nor any em-
ployee, agent, or subcontractor thereof, shall,
with respect to the sale or export of any such de-
fense 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.
(b) Civil penalties
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) Presidential authority
In the enforcement of this section, the Presi-
dent is authorized to exercise the same powers
concerning violations and enforcement and im-
position of civil penalties which are conferred
upon departments, agencies and officials by sub-
sections (c), (d), (e), and (f) of section 11 1 of the
Export Administration Act of 1979, and section
12(a) 1 of such Act, subject to the same terms and
conditions as are applicable to such powers
under that Act, except that secti
Source: Supplied 2024 U.S. Code historical extraction · 22 U.S.C. § 2779a
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