S 402 IS

To make an exception to the United States embargo on trade with Cuba for the export of agricultural commodities, medicines, medical supplies, medical instruments, or medical equipment, and for other purposes.

February 27, 2001

Mr. BAUCUS (for himself, Mr. ROBERTS, and Mrs. LINCOLN) introduced the following bill, which was read twice and referred to the Committee on Finance

To make an exception to the United States embargo on trade with Cuba for the export of agricultural commodities, medicines, medical supplies, medical instruments, or medical equipment, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Cuban Humanitarian Trade Act of 2001'.

SEC. 2. AMENDMENT TO EMBARGO AUTHORITY IN THE FOREIGN ASSISTANCE ACT OF 1961.

Section 620(a)(1) of the Foreign Assistance Act of 1961 (22 U.S.C. 2370(a)(1)) is amended by inserting striking the period at the end of the second sentence and inserting the following: `, except that any such embargo shall not apply with respect to the export of any agricultural commodity, medicines, medical supplies, medical instruments, or medical equipment, or with respect to travel incident to the delivery of agricultural commodities, medicines, medical supplies, medical instruments, or medical equipment. As used in this paragraph, the terms `agricultural commodity' and `medicine' have the meanings given those terms in section 9 of the Cuban Humanitarian Trade Act of 2001.'.

SEC. 3. LIMITATION ON EXISTING RESTRICTIONS ON TRADE WITH CUBA.

Upon the enactment of this Act, any regulation, proclamation, or provision of law, including Presidential Proclamation 3447 of February 3, 1962, the Export Administration Regulations (15 C.F.R. 730 and following), and the Cuban Assets Control Regulations (31 C.F.R. 515), that prohibits exports to Cuba or transactions involving exports to Cuba and that is in effect on the date of the enactment of this Act, shall not apply with respect to the export to Cuba of agricultural commodities, medicines, medical supplies, medical instruments, or medical equipment, or with respect to travel incident to the delivery of agricultural commodities, medicines, medical supplies, medical instruments, or medical equipment.

SEC. 4. LIMITATION ON THE FUTURE EXERCISE OF AUTHORITY.

After the enactment of this Act, the President may not restrict the exportation to Cuba of agricultural commodities, medicines, medical supplies, medical instruments, or medical equipment--

(1) under the Export Administration Act of 1979, except to the extent such restrictions would be permitted under section 5 of that Act for goods containing parts or components on which export controls are in effect under that section; or

(2) under section 203 of the International Emergency Economic Powers Act, except to the extent the authorities under that section are exercised to restrict the export of medical instruments or medical equipment to deal with a threat to the national security of the United States by virtue of the technology incorporated in such instruments or equipment.

SEC. 5. OTHER PROVISIONS OF LAW; CONFORMING AMENDMENTS.

(a) TRADE SANCTIONS REFORM AND EXPORT ENHANCEMENT ACT OF 2000-

(1) INAPPLICABILITY- The Trade Sanctions Reform and Export Enhancement Act of 2000 (title IX of H.R. 5426, as enacted into law by section 1(a) of Public Law 106-387, and as contained in the appendix of such Public Law) shall not apply with respect to exports to Cuba of agricultural commodities, medicines, medical supplies, medical instruments, or medical equipment.

(2) CONFORMING AMENDMENTS- The Trade Sanctions Reform and Export Enhancement Act of 2000 is amended--

(A) in section 906(a)(1)--

(i) by striking `to Cuba or'; and

(ii) by inserting `(other than Cuba)' after `to the government of a country';

(B) in section 908--

(i) by striking subsection (b);

(ii) in subsection (a)--

(I) by striking `PROHIBITION' and all that follows through `(1) IN GENERAL- ' and inserting `IN GENERAL- ';

(II) by striking `for exports to Cuba or';

(III) by striking paragraph (2); and

(IV) by redesignating paragraph (3) as subsection (b) (and conforming the margin accordingly); and

(iii) in subsection (b) (as redesignated), by striking `paragraph (1)' and inserting `subsection (a)';

(C) by striking section 910; and

(D) by redesignating section 911 as section 910.

(b) SANCTIONS UNDER CUBAN DEMOCRACY ACT OF 1992-

(1) INAPPLICABILITY- Section 1706(b) of the Cuban Democracy Act of 1992 (22 U.S.C. 6005(b); prohibiting certain vessels from entering United States ports) shall not apply with respect to vessels that transport agricultural commodities, medicines, medical supplies, medical instruments, or medical equipment to Cuba, or that transport persons whose travel is incident to the delivery of agricultural commodities, medicines, medical supplies, medical instruments, or medical equipment to Cuba.

(2) CONFORMING AMENDMENTS- (A) Section 1705 of the Cuban Democracy Act of 1992 (22 U.S.C. 6004) is amended--

(i) in subsection (b)--

(I) in the subsection caption by striking `, DONATIONS' and inserting `, EXPORTS'; and

(II) by striking `donations of food to nongovernmental organizations or individuals in Cuba' and inserting `exports of agricultural commodities to Cuba';

(ii) by amending subsection (c) to read as follows:

`(c) EXPORTS OF MEDICINES AND MEDICAL SUPPLIES TO CUBA- Exports of medicines, medical supplies, medical instruments, or medical equipment to Cuba shall not be restricted--

`(1) except to the extent such restrictions would be permitted--

`(A) under section 5 of the Export Administration Act of 1979 for goods containing parts or components on which export controls are in effect under that section; or

`(B) under clause (A), (B), or (C) of section 203(b)(2) of the International Emergency Economic Powers Act;

`(2) except in a case in which there is a reasonable likelihood that the item to be exported will be used for purposes of torture or other human rights abuses;

`(3) except in a case in which there is a reasonable likelihood that the item to be exported will be reexported; and

`(4) except in a case in which the item to be exported could be used in the production of any bio-technological product.

Before imposing restrictions under this subsection, the President shall submit to the Congress a report describing the restrictions to be imposed and the reasons for the restrictions.'; and

(iii) by striking subsection (d) and redesignating subsections (e), (f), and (g) as subsections (d), (e), and (f), respectively.

(B) Section 1704(b)(2)(C)(i) of the Cuban Democracy Act of 1992 (22 U.S.C. 6003(b)(2)(C)(i)) is amended to read as follows:

`(i) exports of agricultural commodities to Cuba; or'.

(C) Section 1704 of the Cuban Democracy Act of 1992 (22 U.S.C. 6003) is amended by adding at the end the following:

`(c) DEFINITIONS- As used in this section and section 1705, the terms `agricultural commodity' and `medicine' have the meanings given those terms in section 9 of the Cuban Humanitarian Trade Act of 2001.'

SEC. 6. APPLICATION OF DENIAL OF FOREIGN TAX CREDIT WITH RESPECT TO CUBA.

Subparagraph (A) of section 901(j)(2) of the Internal Revenue Code of 1986 (relating to denial of foreign tax credit, etc., with respect to certain foreign countries) is amended by adding at the end thereof the following new flush sentence:

`Notwithstanding the preceding sentence, this subsection shall not apply to Cuba with respect to income, war profits, or excess profits taxes paid to Cuba that are attributable to activities with respect to articles permitted to be exported to Cuba, or travel incident thereto that is permitted, by virtue of the enactment of the Cuban Humanitarian Trade Act of 2001. The preceding sentence shall apply after the date which is 60 days after the date of the enactment of this sentence.'

SEC. 7. PROHIBITION ON LIMITING ANNUAL REMITTANCES.

(a) IN GENERAL- Except as provided in subsection (b), the Secretary of the Treasury may not limit the amount of remittances to Cuba that may be made by any person who is subject to the jurisdiction of the United States, and the Secretary shall rescind all regulations in effect on the date of enactment of this Act that so limit the amount of those remittances.

(b) STATUTORY CONSTRUCTION- Nothing in subsection (a) may be construed to prohibit the prosecution or conviction of any person committing an offense described in section 1956 of title 18, United States Code (relating to the laundering of monetary instruments) or section 1957 of such title (relating to engaging in monetary transactions in property derived from specific unlawful activity).

SEC. 8. INAPPLICABILITY OF OTHER RESTRICTIONS.

This Act and the amendments made by this Act apply notwithstanding section 102(h) of the Cuban Liberty and Democratic Solidarity (LIBERTAD) Act of 1996 (22 U.S.C. 6032(h)).

SEC. 9. REPORT TO CONGRESS.

Not later than 6 months after the date of the enactment of this Act, the President shall transmit to the Congress a report that sets forth--

(1) the extent (expressed in volume and dollar amounts) of sales to Cuba of agricultural commodities, medicines, medical supplies, medical instruments, and medical equipment, since the enactment of this Act;

(2) a description of the types and end users of the goods so exported; and

(3) whether there has been any indication that any medicines, medical supplies, medical instruments, or medical equipment exported to Cuba since the enactment of this Act--

(A) have been used for purposes of torture or other human rights abuses;

(B) were reexported; or

(C) were used in the production of any bio-technological product.

SEC. 10. DEFINITIONS.

In this Act:

(1) AGRICULTURAL COMMODITY- The term `agricultural commodity'--

(A) has the meaning given the term in section 102 of the Agricultural Trade Act of 1978 (7 U.S.C. 5602); and

(B) includes fertilizer.

(2) MEDICINE- The term `medicine' has the meaning given the term `drug' in section 201 of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 7321).

END