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104TH CONGRESS

1ST SESSION H. R. 1541

To impose economic sanctions against persons who trade with Iran.

IN THE HOUSE OF REPRESENTATIVES

MAY 2, 1995

Mr. KING introduced the following bill; which was referred to the Committee

on International Relations, and in addition to the Committees on Ways

and Means and Government Reform and Oversight, for a period to be

subsequently determined by the Speaker, in each case for consideration

of such provisions as fall within the jurisdiction of the committee

concerned

A BILL

To impose economic sanctions against persons who trade

with Iran.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Iran Foreign Sanctions

5 Act of 1995’’.

6 SEC. 2. IMPOSITION OF SANCTIONS ON PERSONS ENGAG7 ING IN TRADE WITH IRAN.

8 (a) DETERMINATION BY THE PRESIDENT.—
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1 (1) IN GENERAL.—The President shall impose

2 the sanctions described in subsection (b) if the

3 President determines in writing that, on or after the

4 date of enactment of this Act, a foreign person has,

5 with requisite knowledge, engaged in trade with Iran

6 in any goods or technology (as defined in section 16

7 of the Export Administration Act of 1979).

8 (2) PERSONS AGAINST WHICH THE SANCTIONS

9 ARE TO BE IMPOSED.—The sanctions shall be im10 posed pursuant to paragraph (1) on—

11 (A) the foreign person with respect to

12 which the President makes the determination

13 described in that paragraph;

14 (B) any successor entity to that foreign

15 person;

16 (C) any foreign person that is a parent or

17 subsidiary of that person if that parent or sub18 sidiary with requisite knowledge engaged in the

19 activities which were the basis of that deter20 mination; and

21 (D) any foreign person that is an affiliate

22 of that person if that affiliate with requisite

23 knowledge engaged in the activities which were

24 the basis of that determination and if that affil25 iate is controlled in fact by that person.
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1 (b) SANCTIONS.—

2 (1) DESCRIPTION OF SANCTIONS.—The sanc3 tions to be imposed pursuant to subsection (a)(1)

4 are, except as provided in paragraph (2) of this sub5 section, as follows:

6 (A) PROCUREMENT SANCTION.—The

7 United States Government shall not procure, or

8 enter into any contract for the procurement of,

9 any goods or services from any person described

10 in subsection (a)(2).

11 (B) EXPORT SANCTION.—The United

12 States Government shall not issue any license

13 for any export by or to any person described in

14 subsection (a)(2).

15 (C) IMPORT SANCTION.—The importation

16 into the United States of any good or service

17 from, or produced (in whole or in part) by, any

18 person described in subsection (a)(2) is prohib19 ited.

20 (2) EXCEPTIONS.—The President shall not be

21 required to apply or maintain the sanctions under

22 this section—

23 (A) in the case of procurement of defense

24 articles or defense services—
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1 (i) under existing contracts or sub2 contracts, including the exercise of options

3 for production quantities to satisfy require4 ments essential to the national security of

5 the United States;

6 (ii) if the President determines in

7 writing that the person or other entity to

8 which the sanction would otherwise be ap9 plied is a sole source supplier of the de10 fense articles or services, that the defense

11 articles or services are essential, and that

12 alternative sources are not readily or rea13 sonably available; or

14 (iii) if the President determines in

15 writing that such articles or services are

16 essential to the national security under de17 fense coproduction agreements;

18 (B) to products or services provided under

19 contracts entered into before the date on which

20 the President publishes his intention to impose

21 the sanction;

22 (C) to—

23 (i) spare parts which are essential to

24 United States products or production;
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1 (ii) component parts, but not finished

2 products, essential to United States prod3 ucts or production; or

4 (iii) routine servicing and mainte5 nance of products, to the extent that alter6 native sources are not readily or reason7 ably available;

8 (D) to information and technology essen9 tial to United States products or production; or

10 (E) to medical or other humanitarian

11 items.

12 (c) SUPERSEDES EXISTING LAW.—The provisions of

13 this section supersede the provisions of section 1604 of

14 the Iran-Iraq Arms Non-Proliferation Act of 1992 (as con15 tained in Public Law 102–484) as such section applies to

16 Iran.

17 SEC. 3. WAIVER AUTHORITY.

18 The provisions of section 2 shall not apply if the

19 President determines and certifies to the appropriate con20 gressional committees that Iran—

21 (1) has substantially improved its adherence to

22 internationally recognized standards of human

23 rights;

24 (2) has ceased its efforts to acquire a nuclear

25 explosive device; and
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1 (3) has ceased support for acts of international

2 terrorism.

3 SEC. 4. REPORT REQUIRED.

4 Beginning 60 days after the date of enactment of this

5 Act, and every 90 days thereafter, the President shall

6 transmit to the appropriate congressional committees a re7 port describing—

8 (1) the nuclear and other military capabilities

9 of Iran; and

10 (2) the support, if any, provided by Iran for

11 acts of international terrorism.

12 SEC. 5. DEFINITIONS.

13 As used in this Act:

14 (1) ACT OF INTERNATIONAL TERRORISM.—The

15 term ‘‘act of international terrorism’’ means an

16 act—

17 (A) which is violent or dangerous to

18 human life and that is a violation of the crimi19 nal laws of the United States or of any State

20 or that would be a criminal violation if commit21 ted within the jurisdiction of the United States

22 or any State; and

23 (B) which appears to be intended—

24 (i) to intimidate or coerce a civilian

25 population;
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1 (ii) to influence the policy of a govern2 ment by intimidation or coercion; or

3 (iii) to affect the conduct of a govern4 ment by assassination or kidnapping.

5 (2) APPROPRIATE CONGRESSIONAL COMMIT6 TEES.—The term ‘‘appropriate congressional com7 mittees’’ means the Committees on Banking, Hous8 ing, and Urban Affairs and Foreign Relations of the

9 Senate and the Committees on Banking and Finan10 cial Services and International Relations of the

11 House of Representatives.

12 (3) FOREIGN PERSON.—The term ‘‘foreign per13 son’’ means—

14 (A) an individual who is not a United

15 States national or an alien admitted for perma16 nent residence to the United States; or

17 (B) a corporation, partnership, or other

18 nongovernment entity which is not a United

19 States national.

20 (4) IRAN.—The term ‘‘Iran’’ includes any agen21 cy or instrumentality of Iran.

22 (5) NUCLEAR EXPLOSIVE DEVICE.—The term

23 ‘‘nuclear explosive device’’ means any device, wheth24 er assembled or disassembled, that is designed to

25 produce an instantaneous release of an amount of
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1 nuclear energy from special nuclear material that is

2 greater than the amount of energy that would be re3 leased from the detonation of one pound of trinitro4 toluene (TNT).

5 (6) REQUISITE KNOWLEDGE.—The term ‘‘req6 uisite knowledge’’ means situations in which a per7 son ‘‘knows’’, as ‘‘knowing’’ is defined in section 104

8 of the Foreign Corrupt Practices Act of 1977 (15

9 U.S.C. 78dd–2).

10 (7) STATE.—The term ‘‘State’’ means each of

11 the several States, the District of Columbia, the

12 Commonwealth of Puerto Rico, the Commonwealth

13 of the Northern Mariana Islands, American Samoa,

14 Guam, the United States Virgin Islands, and any

15 other territory or possession of the United States.

16 (8) UNITED STATES.—The term ‘‘United

17 States’’ means the several States, the District of Co18 lumbia, the Commonwealth of Puerto Rico, the Com19 monwealth of the Northern Mariana Islands, Amer20 ican Samoa, Guam, the United States Virgin Is21 lands, and any other territory or possession of the

22 United States.

23 (9) UNITED STATES NATIONAL.—The term

24 ‘‘United States national’’ means—
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1 (A) a natural person who is a citizen of the

2 United States or who owes permanent alle3 giance to the United States;

4 (B) a corporation or other legal entity

5 which is organized under the laws of the United

6 States, any State or territory thereof, or the

7 District of Columbia, if natural persons who are

8 nationals of the United States own, directly or

9 indirectly, more than 50 percent of the out10 standing capital stock or other beneficial inter11 est in such legal entity; and

12 (C) any foreign subsidiary of a corporation

13 or other legal entity described in subparagraph

14 (B).

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