Iran and Libya Sanctions Act of 1996
(January 3, 1996)
In January 1996, the House of Representatives passed the Iran
and Libya Sanctions Act .
The law imposes sanctions on foreign companies that invest
$40 million or more in these two countries' energy sectors and was created in response to these two countries'
support for international terrorism, their efforts to acquire weapons
of mass destruction, and their efforts to derail the peace process.
The bill was signed into law on August 5, 1996 and
was renewed in July 2001.
H.R.3107
An Act
To impose sanctions on persons making certain investments
directly and significantly contributing to the enhancement of the ability
of Iran or Libya to develop its petroleum resources, and on persons
exporting certain items that enhance Libya's weapons or aviation capabilities
or enhance Libya's ability to develop its petroleum resources, 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 `Iran and Libya Sanctions
Act of 1996'.
SEC. 2. FINDINGS.
The Congress makes the following findings:
(1) The efforts of the Government of Iran to acquire
weapons of mass destruction and the means to deliver them and its
support of acts of international terrorism endanger the national security
and foreign policy interests of the United States and those countries
with which the United States shares common strategic and foreign policy
objectives.
(2) The objective of preventing the proliferation
of weapons of mass destruction and acts of international terrorism
through existing multilateral and bilateral initiatives requires additional
efforts to deny Iran the financial means to sustain its nuclear, chemical,
biological, and missile weapons programs.
(3) The Government of Iran uses its diplomatic facilities
and quasigovernmental institutions outside of Iran to promote acts
of international terrorism and assist its nuclear, chemical, biological,
and missile weapons programs.
(4) The failure of the Government of Libya to comply
with Resolutions 731, 748, and 883 of the Security Council of the
United Nations, its support of international terrorism, and its efforts
to acquire weapons of mass destruction constitute a threat to international
peace and security that endangers the national security and foreign
policy interests of the United States and those countries with which
it shares common strategic and foreign policy objectives.
SEC. 3. DECLARATION
OF POLICY.
(a) POLICY WITH RESPECT TO IRAN - The Congress declares
that it is the policy of the United States to deny Iran the ability
to support acts of international terrorism and to fund the development
and acquisition of weapons of mass destruction and the means to deliver
them by limiting the development of Iran's ability to explore for,
extract, refine, or transport by pipeline petroleum resources of Iran
.
(b) POLICY WITH RESPECT TO LIBYA - The Congress
further declares that it is the policy of the United States to seek
full compliance by Libya with its obligations under Resolutions 731,
748, and 883 of the Security Council of the United Nations, including
ending all support for acts of international terrorism and efforts
to develop or acquire weapons of mass destruction.
SEC. 4. MULTILATERAL
REGIME.
(a) MULTILATERAL NEGOTIATIONS- In order to further
the objectives of section 3, the Congress urges the President to commence
immediately diplomatic efforts, both in appropriate international
fora such as the United Nations, and bilaterally with allies of the
United States, to establish a multilateral sanctions regime against
Iran , including provisions limiting the development of petroleum
resources, that will inhibit Iran's efforts to carry out activities
described in section 2.
(b) REPORTS TO CONGRESS- The President shall report
to the appropriate congressional committees, not later than 1 year
after the date of the enactment of this Act, and periodically thereafter,
on the extent that diplomatic efforts described in subsection (a)
have been successful. Each report shall include--
(1) the countries that have agreed to undertake
measures to further the objectives of section 3 with respect to
Iran , and a description of those measures; and
(2) the countries that have not agreed to measures
described in paragraph (1), and, with respect to those countries,
other measures (in addition to that provided in subsection (d))
the President recommends that the United States take to further
the objectives of section 3 with respect to Iran .
(c) WAIVER- The President may waive the application
of section 5(a) with respect to nationals of a country if--
(1) that country has agreed to undertake substantial
measures, including economic sanctions, that will inhibit Iran's
efforts to carry out activities described in section 2 and information
required by subsection (b)(1) has been included in a report submitted
under subsection (b); and (2) the President, at least 30 days before
the waiver takes effect, notifies the appropriate congressional
committees of his intention to exercise the waiver.
(d) ENHANCED SANCTION-
(1) SANCTION- With respect to nationals of countries
except those with respect to which the President has exercised the
waiver authority of subsection (c), at any time after the first
report is required to be submitted under subsection (b), section
5(a) shall be applied by substituting `$20,000,000' for `$40,000,000'
each place it appears, and by substituting `$5,000,000' for `$10,000,000'.
(2) REPORT TO CONGRESS- The President shall report
to the appropriate congressional committees any country with respect
to which paragraph (1) applies.
(e) INTERIM REPORT ON MULTILATERAL SANCTIONS; MONITORING-The
President, not later than 90 days after the date of the enactment
of this Act, shall report to the appropriate congressional committees
on--
(1) whether the member states of the European
Union, the Republic of Korea, Australia, Israel, or Japan ha ve
legislative or administrative standards providing for the imposition
of trade sanctions on persons or their affiliates doing business
or having investments in Iran or Libya ;
(2) the extent and duration of each instance of
the application of such sanctions; and
(3) the disposition of any decision with respect
to such sanctions by the World Trade Organization or its predecessor
organization.
SEC. 5. IMPOSITION
OF SANCTIONS.
(a) SANCTIONS WITH RESPECT TO IRAN - Except as provided
in subsection (f), the President shall impose 2 or more of the sanctions
described in paragraphs (1) through (6) of section 6 if the President
determines that a person has, with actual knowledge, on or after the
date of the enactment of this Act, made an investment of $40,000,000
or more (or any combination of investments of at least $10,000,000
each, which in the aggregate equals or exceeds $40,000,000 in any
12-month period), that directly and significantly contributed to the
enhancement of Iran's ability to develop petroleum resources of Iran
.
(b) MANDATORY SANCTIONS WITH RESPECT TO LIBYA -
(1) VIOLATIONS OF PROHIBITED TRANSACTIONS- Except
as provided in subsection (f), the President shall impose 2 or more
of the sanctions described in paragraphs (1) through (6) of section
6 if the President determines that a person has, with actual knowledge,
on or after the date of the enactment of this Act, exported, transferred,
or otherwise provided to Libya any goods, services, technology,
or other items the provision of which is prohibited under paragraph
4(b) or 5 of Resolution 748 of the Security Council of the United
Nations, adopted March 31, 1992, or under paragraph 5 or 6 of Resolution
883 of the Security Council of the United Nations, adopted November
11, 1993, if the provision of such items significantly and materially--
(A) contributed to Libya's ability to acquire
chemical, biological, or nuclear weapons or destabilizing numbers
and types ofadvanced conventional weapons or enhanced Libya's
military or paramilitary capabilities;
(B) contributed to Libya's ability to develop
its petroleum resources; or
(C) contributed to Libya's ability to maintain
its aviation capabilities.
(2) INVESTMENTS THAT CONTRIBUTE TO THE DEVELOPMENT
OF PETROLEUM RESOURCES- Except as provided in subsection (f), the
President shall impose 2 or more of the sanctions described in paragraphs
(1) through (6) of section 6 if the President determines that a
person has, with actual knowledge, on or after the date of the enactment
of this Act, made an investment of $40,000,000 or more (or any combination
of investments of at least $10,000,000 each, which in the aggregate
equals or exceeds $40,000,000 in any 12-month period), that directly
and significantly contributed to the enhancement of Libya's ability
to develop its petroleum resources.
(c) PERSONS AGAINST WHICH THE SANCTIONS ARE TO BE
IMPOSED-
The sanctions described in subsections (a) and (b)
shall be imposed on--
(1) any person the President determines has carried
out the activities described in subsection (a) or (b); and
(2) any person the President determines--
(A) is a successor entity to the person referred
to in paragraph (1);
(B) is a parent or subsidiary of the person
referred to in paragraph
(1) if that parent or subsidiary, with actual
knowledge, engaged in the activities referred to in paragraph
(1); or
(C) is an affiliate of the person referred to
in paragraph (1) if that affiliate, with actual knowledge, engaged
in the activities referred to in paragraph (1) and if that affiliate
is controlled in fact by the person referred to in paragraph (1).
For purposes of this Act, any person or entity
described in this subsection shall be referred to as a `sanctioned
person'.
(d) PUBLICATION IN FEDERAL REGISTER- The President
shall cause to be published in the Federal Register a current list
of persons and entities on whom sanctions have been imposed under
this Act. The removal of persons or entities from, and the addition
of persons and entities to, the list, shall also be so published.
(e) PUBLICATION OF PROJECTS- The President shall
cause to be published in the Federal Register a list of all significant
projects which have been publicly tendered in the oil and gas sector
in Iran .
(f) EXCEPTIONS- The President shall not be required
to apply or maintain the sanctions under subsection (a) or (b)--
(1) in the case of procurement of defense
articles or defense services--
(A) under existing contracts or subcontracts,
including the exercise of options for production quantities
to satisfy requirements essential to the national security
of the United States;
(B) if the President determines in writing
that the person to which the sanctions would otherwise be
applied is a sole source supplier of the defense articles
or services, that the defense articles or services are essential,
and that alternative sources are not readily or reasonably
available; or
(C) if the President determines in writing
that such articles or services are essential to the national
security under defense coproduction agreements;
(2) in the case of procurement, to eligible products,
as defined in section 308(4) of the Trade Agreements Act of 1979
(19 U.S.C. 2518(4)), of any foreign country or instrumentality designated
under section 301(b)(1) of that Act (19 U.S.C. 2511(b)(1));
(3) to products, technology, or services provided
under contracts entered into before the date on which the President
publishes in the Federal Register the name of the person on whom
the sanctions are to be imposed;
(4) to--
(A) spare parts which are essential to United
States products or production;
(B) component parts, but not finished products,
essential to United States products or production; or
(C) routine servicing and maintenance of products,
to the extent that alternative sources are not readily or reasonably
available;
(6) to information and technology essential to
United States products or production; or
(7) to medicines, medical supplies, or other humanitarian
items.
SEC. 6. DESCRIPTION
OF SANCTIONS.
The sanctions to be imposed on a sanctioned person
under section 5 are as follows:
(1) EXPORT-IMPORT BANK ASSISTANCE FOR EXPORTS TO
SANCTIONED PERSONS- The President may direct the Export-Import Bank
of the United States not to give approval to the issuance of any guarantee,
insurance, extension of credit, or participation in the extension
of credit in connection with the export of any goods or services to
any sanctioned person.
(2) EXPORT SANCTION- The President may order the
United States Government not to issue any specific license and not
to grant any other specific permission or authority to export any
goods or technology to a sanctioned person under--
(i) the Export Administration Act of 1979;
(ii) the Arms Export Control Act;
(iii) the Atomic Energy Act of 1954; or
(iv) any other statute that requires the prior
review and approval of the United States Government as a condition
for the export or reexport of goods or services.
(3) LOANS FROM UNITED STATES FINANCIAL INSTITUTIONS-The
United States Government may prohibit any United States financial
institution from making loans or providing credits to any sanctioned
person totaling more than $10,000,000 in any 12-month period unless
such person is engaged in activities to relieve human suffering and
the lo ans or credits are provided for such activities.
(4) PROHIBITIONS ON FINANCIAL INSTITUTIONS- The following
prohibitions may be imposed against a sanctioned person that is a
financial institution:
(A) PROHIBITION ON DESIGNATION AS PRIMARY DEALER-
Neither the Board of Governors of the Federal Reserve System nor
the Federal Reserve Bank of New York may designate, or permit the
continuation of any prior designation of, such financial institution
as a primary dealer in United States Government debt instruments.
(B) PROHIBITION ON SERVICE AS A REPOSITORY OF
GOVERNMENT FUNDS- Such financial institution may not serve as agent
of the United States Government or serve as repository for United
States Government funds. The imposition of either sanction under
subparagraph (A) or (B) shall be treated as 1 sanction for purposes
of section 5, and the imposition of both such sanctions shall be
treated as 2 sanctions for purposes of section 5.
(5) PROCUREMENT SANCTION- The United States Government
may not procure, or enter into any contract for the procurement of,
any goods or services from a sanctioned person.
(6) ADDITIONAL SANCTIONS- The President may impose
sanctions, as appropriate, to restrict imports with respect to a sanctioned
person, in accordance with the International Emergency Economic Powers
Act (50 U.S.C. 1701 and following).
SEC. 7. ADVISORY
OPINIONS.
The Secretary of State may, upon the request of any
person, issue an advisory opinion to that person as to whether a proposed
activity by that person would subject that person to sanctions under
this Act. Any person who relies in good faith on such an advisory opinion
which states that the proposed activity would not subject a person to
such sanctions, and any person who thereafter engages in such activity,
will not be made subject to such sanctions on account of such activity.
SEC. 8. TERMINATION
OF SANCTIONS.
(a) IRAN - The requirement under section 5(a) to
impose sanctions shall no longer have force or effect with respect
to Iran if the President determines and certifies to the appropriate
congressional committees that Iran --
(1) has ceased its efforts to design, develop,
manufacture, or acquire--
(A) a nuclear explosive device or related materials
and technology;
(B) chemical and biological weapons; and
(C) ballistic missiles and ballistic missile
launch technology; and
(2) has been removed from the list of countries
the governments of which have been determined, for purposes of section
6(j) of the Export Administration Act of 1979, to have repeatedly
provided support for acts of international terrorism.
(b) LIBYA - The requirement under section 5(b) to
impose sanctions shall no longer have force or effect with respect
to Libya if the President determines and certifies to the appropriate
congressional committees that Libya has fulfilled the requirements
of United Nations Security Council Resolution 731, adopted January
21, 1992, United Nations Security Council Resolution 748, adopted
March 31,1992, and United Nations Security Council Resolution 883,
adopted November 11, 1993.
SEC. 9. DURATION
OF SANCTIONS; PRESIDENTIAL WAIVER.
(a) Delay of Sanctions-
(1) CONSULTATIONS- If the President makes a determination
described in section 5(a) or 5(b) with respect to a foreign person,
the Congress urges the President to initiate consultations immediately
with the government with primary jurisdiction over that foreign
person with respect to the imposition of sanctions under this Act.
(2) ACTIONS BY GOVERNMENT OF JURISDICTION- In
order to pursue consultations under paragraph (1) with the government
concerned, the President may delay imposition of sanctions under
this Act for up to 90 days. Following such consultations, the President
shall immediately impose sanctions unless the President determines
and certifies to the Congress that the government has taken specific
and effective actions, including, as appropriate, the imposition
of appropriate penalties, to terminate the involvement of the foreign
person in the activities that resulted in the determination by the
President under section 5(a) or 5(b) concerning such person.
(3) ADDITIONAL DELAY IN IMPOSITION OF SANCTIONS-
The President may delay the imposition of sanctions for up to an
additional 90 days if the President determines and certifies to
the Congress that the government with primary jurisdiction over
the person concerned is in the process of taking the actions described
in paragraph (2).
(4) REPORT TO CONGRESS- Not later than 90 days
after making a determination under section 5(a) or 5(b), the President
shall submit to the appropriate congressional committees a report
on the status of consultations with the appropriate foreign government
under this subsection, and the basis for any determination under
paragraph (3).
(b) DURATION OF SANCTIONS- A sanction imposed under
section 5 shall remain in effect--
Sources: The Library of Congress |