Iran Sanctions - Foreign Press Centers

Iran Sanctions
President also is not required to prevent procurement or importation of essential spare parts or
component parts.
In the 110 th Congress, several bills (not adopted) contained provisions that would have further
amended ISA. H.R. 1400, which passed the House on September 25, 2007 (397-16), would have
removed the Administration’s ability to waive ISA sanctions under Section 9(c), national interest
grounds, although without imposing a time limit for a sanctions determination.
“Special Rule” Exempting Firms That End Their Business With Iran
CISADA (§102(g)(5) amended ISA to provide a means—a so-called “special rule”—for firms to
avoid any possibility of U.S. sanctions by pledging to verifiably end their business with Iran and
to forgo any sanctionable business with Iran in the future. Under the special rule, the
Administration is not required to make a determination of sanctionability against a firm that
makes such pledges. The special rule has been invoked on several occasions, as discussed below.
Termination Requirements and Sunset Provisions
In its entirety, ISA application to Iran would terminate if Iran is determined by the Administration
to have ceased its efforts to acquire WMD; is removed from the U.S. list of state sponsors of
terrorism; and no longer “poses a significant threat” to U.S. national security and U.S. allies. 6 The
amendments to ISA made by P.L. 111-195 would terminate if the first two criteria are met.
Even without such determinations, ISA was to sunset on August 5, 2001, in a climate of lessening
tensions with Iran (and Libya). During 1999 and 2000, the Clinton Administration had eased the
trade ban on Iran somewhat to try to engage the relatively moderate Iranian President Mohammad
Khatemi. However, some maintained that Iran would view its expiration as a concession, and
renewal legislation was enacted (P.L. 107-24, August 3, 2001). This law required an
Administration report on ISA’s effectiveness within 24 to 30 months of enactment; that report was
submitted to Congress in January 2004 and did not recommend that ISA be repealed. ISA was
scheduled to sunset on December 31, 2011 (as provided by P.L. 109-293). The sunset is now
December 31, 2016, as provided for in CISADA.
Interpretations of ISA and CISADA
ISA, as amended by CISADA, has been subject to differing interpretations based on specific
definitions. Interpretations of its provisions have developed and been clarified through real world
examples and cases presented to successive U.S. administrations.
6 This latter termination requirement added by P.L. 109-293. This law also removed Libya from the act, although
application to Libya effectively terminated when the President determined on April 23, 2004, that Libya had fulfilled
the requirements of all U.N. resolutions on Pan Am 103.
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