Elephant Protection Act

Elephant Protection Act - Requires the United States Trade Representative (USTR), before January 1, 1990, to identify each foreign country that has enacted sanctions against trading in ivory. Requires the USTR to: (1) determine, for each year after 1989, if each identified country has effectively enforced such sanctions; (2) determine, for each year after 1990, if each foreign country not so identified has enacted such sanctions; and (3) determine, for each year after 1990, if such countries that have implemented sanctions against trading in ivory have enforced them. Directs the USTR to: (1) make such determinations for each year; (2) notify the President of each negative determination; and (3) publish each negative determination in the Federal Register.

Requires the President, after receiving a negative determination with respect to any foreign country, to revoke nondiscriminatory treatment (most-favored-nation treatment) for all products of such country that are imported into the United States.

Makes it unlawful for any person to import or export ivory products. Sets forth civil and criminal penalties.

Amends the Internal Revenue Code to deny foreign tax credit benefits with respect to income derived from trading in ivory. Provides that ivory-related income shall not be treated as foreign base company income.

 
B37 5-3-89 (Update)
HR 2172 IH
101st CONGRESS
1st Session
 H. R. 2172
To revoke most-favored-nation treatment from the products of foreign countries
that do not prohibit international trading in ivory and ivory products, to
deny foreign tax credits with respect to income derived from the processing
of, or trading in, ivory, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
May 2, 1989
Mr. DONNELLY (for himself, Mr. FAUNTROY, Ms. PELOSI, Mr. PETRI, Mr. FUSTER,
Mr. TRAFICANT, Mr. AKAKA, Mr. FAZIO, Mrs. COLLINS, and Mr. OLIN) introduced
the following bill; which was referred jointly to the Committees on Ways
and Means and Foreign Affairs
A BILL
To revoke most-favored-nation treatment from the products of foreign countries
that do not prohibit international trading in ivory and ivory products, to
deny foreign tax credits with respect to income derived from the processing
of, or trading in, ivory, 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 `Elephant Protection Act'.
SEC. 2. DETERMINATIONS REGARDING THE IMPLEMENTATION BY FOREIGN COUNTRIES OF
SANCTIONS AGAINST IVORY TRADING.
  (a) INITIAL SURVEY- Before January 1, 1990, the Trade Representative shall
  identify each foreign country that, under its internal law, has enacted
  (or otherwise has given legal force and effect to) sanctions against
  trading in ivory.
  (b) ANNUAL REVIEW-
  (1) For each year after 1989, the Trade Representative shall determine if
  each foreign country that is identified under subsection (a) effectively
  enforced during such year its sanctions against trading in ivory.
  (2) For each year after 1990, the Trade Representative shall determine if
  each foreign country that is not identified under subsection (a) enacted
  (or otherwise gave legal force and effect to) during such year sanctions
  against trading in ivory.
  (3) For each year after the year in which a foreign country is determined
  under paragraph (2) to have implemented sanctions against trading in ivory,
  the Trade Representative shall determine if the country effectively enforced
  the sanctions during such year.
  (c) TIME FOR DETERMINATIONS; REPORT- The Trade Representative shall--
  (1) make the determinations required under subsection (b) for each year;
  (2) notify the President of each negative determination so made; and
  (3) publish in the Federal Register notice of each such negative
  determination and a summary of the reasons on which the determination
  was based;
not later than the 30th day after the last day of the year for which the
determinations are made.
SEC. 4. REVOCATION OF NONDISCRIMINATORY TREATMENT.
  After receiving notice of any negative determination under section 3(c)(2)
  with respect to any foreign country, the President shall immediately
  by proclamation revoke nondiscriminatory treatment (most-favored-nation
  treatment) for all products of that country that are entered, or withdrawn
  from warehouse for consumption, in the customs territory of the United
  States during the year after the year for which the determination is made.
SEC. 5. PROHIBITED ACTS AND PENALTIES.
  (a) PROHIBITED ACTS- Notwithstanding any other provision of law, it is
  unlawful for any person, after the date of the enactment of this Act--
  (1) to import raw ivory or worked ivory into the United States; and
  (2) to export raw ivory or worked ivory from the United States.
  (b) CRIMINAL VIOLATIONS- Whoever knowingly violates subsection (a) shall,
  upon conviction, be fined under title 18, United States Code, or imprisoned
  for not more than 5 years, or both.
  (c) CIVIL VIOLATIONS- Whoever violates subsection (a) may be assessed a
  civil penalty by the Secretary of the Treasury of not more than $10,000
  for each such violation.
  (d) PROCEDURES FOR ASSESSMENT OF CIVIL PENALTY- Proceedings for the
  assessment of a civil penalty under this section shall be conducted
  in accordance with the procedures provided for in section 11(a) of the
  Endangered Species Act of 1973 (16 U.S.C. 1540(a)).
SEC. 6. DEFINITIONS.
  For purposes of sections 1 through 5:
  (1) The term `foreign country' means any country, or instrumentality of
  a country, to which the United States extends nondiscriminatory treatment
  (most-favored-nation treatment).
  (2) The term `raw ivory' means any tusk of any animal designated as an
  endangered species or threatened species under the Endangered Species Act
  of 1973, or any piece of any such tusk, the surface of which, polished or
  unpolished, is unaltered or minimally carved.
  (3) The term `sanctions against trading in ivory' means, with respect to
  a foreign country--
  (A) a prohibition on the importation of raw ivory or worked ivory into
  any place under the jurisdiction of that country;
  (B) a prohibition on the exportation of raw ivory and worked ivory from
  any place under the jurisdiction of that country; and
  (C) provision for--
  (i) imprisonment for not more than 5 years, or
  (ii) a fine of not less than the equivalent of $10,000 in the currency of
  that country;
or both, for violation of the prohibition referred to in subparagraph (A)
or (B).
  (4) The term `Trade Representative' means the United States Trade
  Representative.
  (5) The term `worked ivory' means any tusk of any animal designated as an
  endangered species or threatened species under the Endangered Species Act
  of 1973, or any piece of any such tusk, which is not raw ivory.
  (6) A foreign country that repeals or substantially weakens its sanctions
  against trading in ivory shall be treated under subsection (b), for each
  year in which such repeal or diminution is in effect, as a country that
  did not effectively enforce its sanctions during such year.
SEC. 7. DENIAL OF CERTAIN TAX BENEFITS WITH RESPECT TO INCOME FROM IVORY
PRODUCTS.
  (a) FOREIGN TAX CREDIT- Section 901 of the Internal Revenue Code of 1986
  (relating to taxes of foreign countries and of possessions of the United
  States) is amended by redesignating subsection (k) as subsection (l)
  and by inserting after subsection (j) the following new subsection:
  `(k) DENIAL OF FOREIGN TAX CREDIT, ETC., WITH RESPECT TO INCOME FROM
  IVORY PRODUCTS-
  `(1) IN GENERAL- Notwithstanding any other provision of this part--
  `(A) no credit shall be allowed under subsection (a) for any ivory-related
  taxes, and
  `(B) subsections (a), (b), and (c) of section 904 and sections 902 and
  960 shall be applied separately with respect to ivory-related income.
  `(2) IVORY-RELATED TAXES- For purposes of this subsection, the term
  `ivory-related taxes' means any income, war profits, and excess profit
  taxes paid or accrued (or deemed to have been paid under section 902 or 960)
  during the taxable year with respect to ivory-related income.
  `(3) IVORY-RELATED INCOME- For purposes of this subsection--
  `(A) IN GENERAL- The term `ivory-related income' means income from--
  `(i) processing ivory,
  `(ii) manufacture or production of products containing ivory,
  `(iii) distribution or sale of ivory or products containing ivory, or
  `(iv) the disposition of assets used by the taxpayer in a trade or business
  described in clause (i), (ii), or (iii).
  `(B) DIVIDENDS, INTEREST, ETC- The term `ivory-related income' includes--
  `(i) dividends and interest from a foreign corporation in respect of which
  taxes are deemed paid by the taxpayer under section 902,
  `(ii) amounts with respect to which taxes are deemed paid under section
  960(a), and
  `(iii) the taxpayer's distributive share of the income of partnerships,
to the extent that such dividend, interest, amounts, or distributive share
is attributable to ivory-related income.
  `(4) IVORY- For purposes of this subsection, the term `ivory' means--
  `(A) raw ivory as defined in section 6(2) of the Elephant Protection Act; and
  `(B) worked ivory as defined in section 6(5) of the Elephant Protection Act.'
  (b) CURRENT TAXATION OF IVORY-RELATED INCOME-
  (1) IN GENERAL- Subsection (a) of section 954(a) of such Code (defining
  foreign base company income) is amended by striking `and' at the end
  of paragraph (4), by striking the period at the end of paragraph (5)
  and inserting `, and', and by adding at the end thereof the following
  new paragraph:
  `(6) the ivory-related income (as defined in section 901(k)(3)) for the
  taxable year reduced as provided in subsection (b)(5).'
  (2) TECHNICAL AMENDMENTS-
  (A) Subparagraph (A) of section 954(b)(3) of such Code is amended by adding
  at the end thereof the following new sentence: `The preceding sentence
  shall not apply to any ivory-related income described in subsection (a)(6).'
  (B) The second sentence of section 954(b)(4) of such Code is amended by
  inserting `or to any ivory-related income described in subsection (a)(6)'
  before the period at the end thereof.
  (C) Paragraph (5) of section 954(b) of such Code is amended by striking
  `and the foreign base company oil-related income' and inserting `, the
  foreign base company oil-related income, and the ivory-related income'.
  (D) Subsection (b) of section 954 of such Code is amended by adding at
  the end thereof the following new paragraph:
  `(9) IVORY-RELATED INCOME NOT TREATED AS OTHER KIND OF BASE COMPANY INCOME-
  Income of a corporation which is ivory-related income described in subsection
  (a)(6) shall not be treated as foreign base company income under any other
  paragraph of subsection (a).'
  (c) EFFECTIVE DATE- The amendments made by this section shall apply to
  taxable years beginning after December 31, 1989.