DISPOSITION OF PERSONAL PROPERTY ABROAD.

SEC 186. DISPOSITION OF PERSONAL PROPERTY ABROAD. (a) Amendment to State Department Basic Authorities Act of 1956.— The State Department Basic Authorities Act of 1956 (Public Law 84–885; 22 U.S.C. 2269 et seq.) is amended by adding at the end thereof the following new title: “TITLE III— DISPOSITION OF PERSONAL PROPERTY ABROAD “SEC. 301. DEFINITIONS. “For purposes of this title, the following terms have the following meanings: “(1) The term ‘employee’ means an individual who is under the jurisdiction of a chief of mission to a foreign country (as provided under section 207 of the Foreign Service Act of 1980 (22 U.S.C. 3927)) and who is— 101 STAT. 1367 “(A) an employee as defined by section 2105 of title 5, United States Code; “(B) an officer or employee of the United States Postal Service or of the Postal Rate Commission; “(C) a member of a uniformed service who is not under the command of an area military commander; or “(D) an expert or consultant as authorized pursuant to section 3109 of title 5, United States Code, with the United States or any agency, department, or establishment thereof; but is not a national or permanent resident of the foreign country in which employed. “(2) The term ‘contractor’ means— “(A) an individual employed by personal services contract pursuant to section 2(c) of this Act (22 U.S.C. 2669(c)), section 636(a)(3) of the Foreign Assistance Act of 1961 (22 U.S.C. 2396(a)(3)), or pursuant to other similar authority, including, in the case of an organization performing services under such authority, an individual involved in the performance of such services; and “(B) such other individuals or firms providing goods or services by contract as are designated by regulations issued pursuant to section 303; but does not include a contractor with or under the supervision of an area military commander. “(3) The term ‘charitable contribution’ means a contribution or gift as defined in section 170(c) of the Internal Revenue Code of 1986, or other similar contribution or gift to a bona fide charitable foreign entity as determined pursuant to regulations or policies issued pursuant to section 303. “(4) The term ‘chief of mission’ has the meaning given such term by section 102(3) of the Foreign Service Act of 1980 (22 U.S.C. 2902(3)). “(5) The term ‘foreign country’ means any country or territory, excluding the United States, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, the Trust Territory of the Pacific Islands, American Samoa, Guam, the Virgin Islands, and other territories or possessions of the United States. “(6) The term ‘personal property’ means any item of personal property, including automobiles, computers, boats, audio and video equipment, and any other items acquired for personal use, but excluding items of minimal value as determined by regulation or policy issued pursuant to section 303. “(7) The term ‘profit’ means any proceeds (including cash and other valuable consideration but not including amounts of such proceeds given as charitable contributions) for the sale, disposition, or assignment of personal property in excess of the basis for such property. For purposes of this title, basis shall include initial price, inland and overseas transportation costs (if not reimbursed by the United States Government), shipping insurance, taxes, customs fees, duties or other charges, and capital improvements, but shall not include insurance on an item while in use, or maintenance and related costs. For purposes of computing profit, proceeds and costs shall be valued in United States dollars at the time of receipt or payment, at a rate of exchange as determined by regulation or policy issued pursuant to section 303. 101 STAT. 1368 “SEC. 302. LIMITATIONS ON DISPOSITION OF PERSONAL PROPERTY. “(a) General Rule.— Except as authorized under subsection (b), employees or members of their family shall not sell, assign, or otherwise dispose of personal property within a foreign country which was imported into or purchased within that foreign country and which, by virtue of the official status of the employee, was exempt from import limitation, customs duties, or taxes which would otherwise apply. “(b) Approval by Chief of Mission.— The chief of mission to a foreign country, or a designee of such chief of mission, is authorized to approve within that foreign country sales, assignment, or other dispositions of property by employees under the chief of mission’s jurisdiction (as described in section 207 of the Foreign Service Act of 1980 (22 U.S.C. 3927)) to the extent that such sale, assignment, or other disposition is in accordance with regulations and policies, rules, and procedures issued pursuant to section 303. “(c) Violation.— Violation of this section, or other importation, sale, or other disposition of personal property within a foreign country which violates its laws or regulations or governing international law and is prohibited by regulations and policies, rules, and procedures issued pursuant to section 303, shall be grounds for disciplinary action against an employee. “SEC. 303. REGULATIONS. “(a) Issuance; Purpose.— The Secretary of State may issue regulations to carry out the purposes of this title. The primary purpose of such regulations and related policies, rules, and procedures shall be to assure that employees and members of their families do not profit personally from sales or other transactions with persons who are not themselves entitled to exemption from import restrictions, duties, or taxes. “(b) Contractors.— Such regulations shall require that, to the extent contractors enjoy importation or tax privileges in a foreign country because of their contractual relationship to the United States Government, after the effective date of this title contracting agencies shall include provisions in their contracts to carry out the purpose of this title. “(c) Chief of Mission.— In order to ensure that due account is taken of local conditions, including applicable laws, markets, exchange rate factors, and accommodation exchange facilities, such regulations may authorize the chief of mission to each foreign country to establish more detailed policies, rules, or procedures for the application of this title within that country to employees under the chief of mission’s jurisdiction.”. (b) Effective Date.— This section shall take effect 180 days after the date of enactment of this Act.