Page:United States Statutes at Large Volume 108 Part 1.djvu/530

 108 STAT. 504 PUBLIC LAW 103-236—APR. 30, 1994 "(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 purchsise or acquisition by other United States persons of, gooas or services produced, manufactured, grown, or extracted, in whole or in part, in that foreign country in consideration for the purchase DV the foreign country of defense articles or defense service from the supplier; and ''(2) 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, district, territory, or possession thereof; or "(ii) owned or controlled in fact by individuals described in subparagraph (A). ". SEC. 733. PROHramON ON INCENTIVE PAYMENTS UNDER THE ARMS EXPORT CONTROL ACT. The Arms Export Control Act (22 U.S.C. 2779) is amended by inserting after section 39 the following new section: 22 USC 2779a. "SEC. 39A. PROmBITION ON INCENTIVE PAYMENTS. "(a) No United States supplier of defense articles or services sold under this Act, nor any employee, agent, or subcontractor thereof, shall, with respect to the sale of any such defense article or defense service to a foreign country, make any incentive pay- ments for the purpose of satisfying, in whole or in part, any onset agreement with that country. "(b) 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) 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 of the Export Administration Act of 1979 and section 12(a) of such Act, subject to the same terms and conditions as are applicable to such powers under that Act, except 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) 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

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