Stop Chinese Fentanyl Act of 2023

New Section 2 expresses the sense of Congress that China should work with the US on identifying unregulated precursor chemicals, require proper labeling of chemical shipments, implement know-your-customer procedures, and direct its agencies to crack down on precursor trafficking. This is non-binding but signals congressional expectations.

The definition of 'covered national emergency' for IEEPA periodic evaluation was changed from any emergency declared two or more years prior to the exercise of authority, to only emergencies regarding international drug trafficking declared within the preceding 5-year period. This narrows which emergencies trigger the annual reporting requirement.

The House Committee on Oversight and Accountability and Senate Committee on Homeland Security and Governmental Affairs were added as recipients of periodic IEEPA evaluations, expanding congressional oversight.

New Section 5 creates an exception stating that sanctions under this Act shall not include authority or a requirement to impose sanctions on the importation of goods. This carves out trade in physical goods from the sanctions regime, potentially limiting the bill's economic pressure on China.

The definition of 'foreign opioid trafficker' for senior Chinese officials was narrowed. Previously, an official qualified if they had regulatory responsibilities over a trafficking entity OR failed to take credible steps against trafficking. Now both conditions must be met: the official must have regulatory responsibilities AND must aid and abet (including through intentional inaction) opioid trafficking. This makes it harder to designate Chinese officials.

The President is now directed to specifically consider whether the heads of four named Chinese agencies (National Narcotics Control Commission, Ministry of Public Security, General Administration of Customs, and National Medical Products Administration) qualify as foreign opioid traffickers when making designations.

IEEPA regulation authority is now explicitly tied to 'a covered national emergency (as defined in section 203),' limiting the President's regulatory authority under this provision to drug trafficking emergencies rather than any national emergency.