Iran Sanctions - Foreign Press Centers

Iran Sanctions
Alterations to Waiver and Implementation Provisions:
Section 102(g) amends ISA to make mandatory the beginning of an investigation of potentially sanctionable activity
upon receipt of credible information of a potential violation. Makes mandatory a decision on sanctionability within 180
days of the beginning of such an investigation. (Previously, 180-day period was nonbinding.)
Mandatory investigation (which goes into effect July 1, 2011) of gasoline sales to Iran can be delayed for 180 days
subject to a report—by June 1, 2011—certifying that there has been a substantial reduction in gasoline sales to Iran as
a result of CISADA.
Section 102(c) sets 9(c) waiver standard as “necessary to the national interest”
Section 102(g) also alters existing 4(c) ISA waiver to delay sanctions on firms of countries that are “closely
cooperating” with U.S. efforts against Iran’s WMD programs. (This is not an automatic “carve out” for cooperating
countries.)
Section 102(g)(3) adds to ISA a “special rule” that no investigation of a potential violation need be started if a firm has
ended or pledged to end its violating activity in/with Iran.
“Special rule” invoked twice, as discussed above.
Required Reports:
Various reporting requirements throughout (separate from those required to trigger or justify the various sanctions
or waivers). These reporting requirements are:
- Amendment of Section 10 of ISA to include a report, within 90 days of enactment, and annual thereafter, on trade
between Iran and the countries of the Group of 20 Finance Ministers and Central Bank Governors. (From House
version)
- Section 110 of the law (not an amendment to ISA) requires a report within 90 days, and every 180 days hence, on
investments made in Iran’s energy sector since January 1, 2006. The report must include significant joint ventures
outside Iran in which Iranian entities are involved.
- The Section 110 report is to include an estimate of the value of ethanol imported by Iran during the reporting
period.
Not clear whether Section 110 reports have been submitted to Congress.
- Section 111 (not an ISA amendment) requires a report within 90 days on the activities of export credit agencies of
foreign countries in guaranteeing financing for trade with Iran).
Not clear whether report was submitted to Congress.
Expansion of ISA Definitions:
Does not include export credit agencies as a sanctionable entity under ISA (as amended). (However, a report is
required on export credit agency activity, as discussed above.)
Does include LNG as petroleum resources.
As discussed in text, eliminates specific exemption of application of ISA sanctions energy sector equipment and
services. This change largely mooted by November 2011 executive order, discussed above, which specifically
sanctions sales to Iran of such equipment.
Termination Provisions:
The amendments to ISA in this law terminate if the President certifies that Iran has ceased WMD development, and
has qualified for removal from the U.S. terrorism list.
However, the pre-existing version of ISA would continue to apply until the President also certifies that Iran poses no
significant threat to U.S. national security, interests, or allies.
ISA Sunset:
Extends ISA sunset to December 31, 2016.
It was previously scheduled to “sunset” on December 31, 2011, as amended by the Iran Freedom Support Act (P.L.
109-293).
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