SEC. 871. PROHIBITION ON ACQUISITION OF SENSITIVE MATERIALS FROM
NON-ALLIED FOREIGN NATIONS. (a) In General.—Subchapter V of chapter 148 of title 10, United
States Code, is amended by inserting after section 2533b the
following new section:
Ҥ 2533c. Prohibition on acquisition of sensitive materials from
non-allied foreign nations
“(a) In General.—Except as provided in subsection (c), the
Secretary of Defense may not—
“(1) procure any covered material melted or produced in any
covered nation, or any end item that contains a covered material
manufactured in any covered nation, except as provided by
subsection (c); or
“(2) sell any covered material from the National Defense
Stockpile, if the National Defense Stockpile Manager determines
that such a sale is not in the national interests of the United
States, to—
“(A) any covered nation; or
“(B) any third party that the Secretary reasonably believes is
acting as a broker or agent for a covered nation or an entity in
a covered nation.
“(b) Applicability.—Subsection (a) shall apply to prime
contracts and subcontracts at any tier.
“(c) Exceptions.—Subsection (a) does not apply under the
following circumstances:
“(1) If the Secretary of Defense determines that covered
materials of satisfactory quality and quantity, in the required
form, cannot be procured as and when needed at a reasonable
price.
“(2) To the procurement of an end item described in subsection
(a)(1) or the sale of any covered material described under
subsection (a)(1) by the Secretary outside of the United States
for use outside of the United States.
“(3) To the purchase by the Secretary of an end item containing
a covered material that is—
“(A) a commercially available off-the-shelf item (as defined in
section 104 of title 41), other than—
“(i) a commercially available off-the-shelf item that is 50
percent or more tungsten by weight; or
“(ii) a mill product, such as bar, billet, slab, wire, cube,
sphere, block, blank, plate, or sheet, that has not been
incorporated into an end item, subsystem, assembly, or
component;
“(B) an electronic device, unless the Secretary of Defense, upon
the recommendation of the Strategic Materials Protection Board
pursuant to section 187 of this title, determines that the
domestic availability of a particular electronic device is
critical to national security; or
“(C) a neodymium-iron-boron magnet manufactured from recycled
material if the milling of the recycled material and sintering
of the final magnet takes place in the United States.
“(d) Definitions.—In this section:
“(1) COVERED MATERIAL.—The term ‘covered material’ means—
“(A) samarium-cobalt magnets;
“(B) neodymium-iron-boron magnets;
“(C) tungsten metal powder; and
“(D) tungsten heavy alloy or any finished or semi-finished
component containing tungsten heavy alloy.
“(2) COVERED NATION.—The term ‘covered nation’ means—
“(A) the Democratic People’s Republic of North Korea;
“(B) the People’s Republic of China;
“(C) the Russian Federation; and
“(D) the Islamic Republic of Iran.
“(3) END ITEM.—The term ‘end item’ has the meaning given in
section 2533b(m) of this title.”.
(b) Clerical Amendment.—The table of contents at the beginning
of such subchapter is amended by inserting after the item
relating to section 2533b the following item:
“2533c. Prohibition on acquisition of sensitive materials from
non-allied foreign nations.”. |
Prohibition on acquisition of sensitive materials from nonallied
foreign nations (sec. 871) The
House bill contained a provision (sec. 873) that would prohibit
the acquisition of certain sensitive materials from non-allied
foreign nations.
The Senate amendment contained no
similar provision.
The Senate recedes with a technical
amendment.
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