I 

115TH CONGRESS 

1ST SESSION H. R. 1698 

To expand sanctions against Iran with respect to the ballistic missile program 

of Iran, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 23, 2017 

Mr. ROYCE of California (for himself, Mr. ENGEL, Mr. MCCARTHY, and Mr. 

HOYER) introduced the following bill; which was referred to the Committee on Foreign Affairs, and in addition to the Committees on Financial Services, the Judiciary, Ways and Means, and Oversight and Government Reform, 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 expand sanctions against Iran with respect to the ballistic 

missile program of Iran, and for other purposes. 

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 Ballistic Missiles 

5 and International Sanctions Enforcement Act’’. 


asabaliauskas on DSK3SPTVN1PROD with BILLS
2 

•HR 1698 IH

1 SEC. 2. SANCTIONS RELATING TO EFFORTS BY THE GOV2 ERNMENT OF IRAN WITH RESPECT TO BAL3 LISTIC MISSILE-RELATED GOODS, SERVICES, 

4 AND TECHNOLOGIES. 

5 (a) FINDINGS.—Congress finds the following: 

6 (1) United Nations Security Council Resolution 

7 2231 (2015)— 

8 (A) calls upon Iran ‘‘not to undertake any 

9 activity related to ballistic missiles designed to 

10 be capable of delivering nuclear weapons, in11 cluding launches using such ballistic missile 

12 technology’’; and 

13 (B) calls upon member states to ‘‘take the 

14 necessary measures to prevent, except as de15 cided otherwise by the UN Security Council in 

16 advance on a case-by-case basis, the supply, 

17 sale, or transfer of arms or related materiel 

18 from Iran’’. 

19 (2) The United States maintains bilateral sanc20 tions against Iran for its efforts to manufacture, ac21 quire, possess, develop, transport, transfer or use 

22 ballistic missiles or ballistic missile launch tech23 nology, and its acquisition of destabilizing types and 

24 amounts of conventional weapons. 

25 (3) According to the 2016 Worldwide Threat 

26 Assessment, the United States intelligence commuVerDate Sep 11 2014 21:10 Mar 28, 2017 Jkt 069200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1698.IH H1698

asabaliauskas on DSK3SPTVN1PROD with BILLS
3 

•HR 1698 IH

1 nity judges ‘‘that Tehran would choose ballistic mis2 siles as its preferred method of delivering nuclear 

3 weapons, if it builds them. Iran’s ballistic missiles 

4 are inherently capable of delivering [weapons of 

5 mass destruction], and Tehran already has the larg6 est inventory of ballistic missiles in the Middle East. 

7 Iran’s progress on space launch vehicles—along with 

8 its desire to deter the United States and its allies— 

9 provides Tehran with the means and motivation to 

10 develop longer-range missiles, including ICBMs.’’. 

11 (4) Since the passage of United Nations Secu12 rity Council 2231, Iran has conducted numerous 

13 tests of ballistic missiles designed to be capable of 

14 delivering nuclear weapons, and has acquired desta15 bilizing types of conventional weapons. 

16 (5) Iran has pursued the ability to indigenously 

17 produce ballistic missile and cruise missile goods, 

18 services, and technologies. 

19 (b) STATEMENT OF POLICY.—It is the policy of the 

20 United States to prevent Iran from undertaking any activ21 ity related to ballistic missiles designed to be capable of 

22 delivering nuclear weapons, including launches using such 

23 ballistic missile technology. 

24 (c) REPORT ON SUPPLY CHAIN OF IRAN’S BALLISTIC

25 MISSILE PROGRAM.— 


asabaliauskas on DSK3SPTVN1PROD with BILLS
4 

•HR 1698 IH

1 (1) IN GENERAL.—Not later than 90 days after 

2 the date of the enactment of this Act, the President 

3 shall submit to the appropriate congressional com4 mittees a report that contains the following: 

5 (A) An analysis of the foreign and domes6 tic supply chain in Iran that directly or indi7 rectly significantly facilitates, supports, or oth8 erwise aids the Government of Iran’s ballistic 

9 missile program. 

10 (B) A description of the geographic dis11 tribution of the foreign and domestic supply 

12 chain described in subparagraph (A). 

13 (C) An assessment of the Government of 

14 Iran’s ability to indigenously manufacture or 

15 otherwise produce the goods, services, or tech16 nology necessary to support its ballistic missile 

17 program. 

18 (D) An identification of foreign persons 

19 that have, based on credible information, di20 rectly or indirectly facilitated or supported the 

21 development of the Government of Iran’s bal22 listic missile program, including the foreign and 

23 domestic supply chain described in subpara24 graph (A). 


asabaliauskas on DSK3SPTVN1PROD with BILLS
5 

•HR 1698 IH

1 (2) FORM.—The report required under para2 graph (1) shall be submitted in unclassified form, 

3 but may contain a classified annex. 

4 (d) INVESTIGATIONS.—Section (4)(e) of the Iran 

5 Sanctions Act of 1996 (Public Law 104–172; 50 U.S.C. 

6 1701 note) is amended by inserting ‘‘or 5(b)’’ after ‘‘sec7 tion 5(a)’’ each place it appears. 

8 (e) SANCTIONABLE ACTIVITIES WITH RESPECT TO

9 WEAPONS OF MASS DESTRUCTION.—Paragraph (1) of 

10 section 5(b) of the Iran Sanctions Act of 1996 (Public 

11 Law 104–172; 50 U.S.C. 1701 note) is amended— 

12 (1) in the heading, by striking ‘‘EXPORTS, 

13 TRANSFERS, AND TRANSSHIPMENTS’’ and inserting 

14 ‘‘WEAPONS OF MASS DESTRUCTION; BALLISTIC MIS15 SILES; CONVENTIONAL WEAPONS’’; 

16 (2) by striking ‘‘Except as’’ and inserting the 

17 following: 

18 ‘‘(A) WEAPONS OF MASS DESTRUCTION.— 

19 Except as’’; 

20 (3) by striking ‘‘(A) on or after the date of the 

21 enactment of the Iran Threat Reduction and Syria 

22 Human Rights Act of 2012’’ and inserting the fol23 lowing: 


asabaliauskas on DSK3SPTVN1PROD with BILLS
6 

•HR 1698 IH

1 ‘‘(i) on or after the date of the enact2 ment of the Iran Ballistic Missiles and 

3 International Sanctions Enforcement Act’’; 

4 (4) by striking ‘‘and’’ at the end of subpara5 graph (A)(i) (as so redesignated); 

6 (5) by striking ‘‘(B) knew’’ and inserting the 

7 following: 

8 ‘‘(ii) knew’’; 

9 (6) by striking ‘‘(i) the export’’ and inserting 

10 the following: 

11 ‘‘(I) the export’’; 

12 (7) by striking ‘‘would likely’’ and inserting 

13 ‘‘may’’; 

14 (8) by striking ‘‘(ii) the export’’ and inserting 

15 the following: 

16 ‘‘(II) the export’’; 

17 (9) by striking ‘‘(I) acquire’’ and inserting the 

18 following: 

19 ‘‘(aa) acquire’’; 

20 (10) by striking ‘‘; or’’ at the end of subpara21 graph (A)(ii)(II)(aa) (as so redesignated); 

22 (11) by inserting after subparagraph 

23 (A)(ii)(II)(aa) (as so redesignated) the following: 


asabaliauskas on DSK3SPTVN1PROD with BILLS
7 

•HR 1698 IH

1 ‘‘(bb) acquire or develop bal2 listic missiles or ballistic missile 

3 launch technologies; or’’; 

4 (12) by striking ‘‘(II) acquire’’ and inserting 

5 the following: 

6 ‘‘(cc) acquire’’; 

7 (13) by striking the period at the end of sub8 paragraph (A)(ii)(II)(cc) (as so redesignated) and 

9 inserting ‘‘; and’’; and 

10 (14) by adding at the end of subparagraph (A) 

11 the following: 

12 ‘‘(iii) knowingly exports or transfers, 

13 or permits or otherwise facilitates the 

14 transshipment or re-export of, any goods, 

15 services, technology, or other items to Iran 

16 that materially contributes to the ability of 

17 Iran to— 

18 ‘‘(I) acquire or develop ballistic 

19 missiles or ballistic missile launch 

20 technologies; or 

21 ‘‘(II) acquire or develop desta22 bilizing numbers and types of ad23 vanced conventional weapons (as such 

24 term is defined in paragraphs (1) and 

25 (2) of section 1608 of the Iran-Iraq 


asabaliauskas on DSK3SPTVN1PROD with BILLS
8 

•HR 1698 IH

1 Arms Non-Proliferation Act of 

2 1992).’’. 

3 (f) SANCTIONABLE ACTIVITIES WITH RESPECT TO

4 BALLISTIC MISSILES.—Paragraph (1) of section 5(b) of 

5 the Iran Sanctions Act of 1996 (Public Law 104–172; 50 

6 U.S.C. 1701 note), as amended by subsection (e), is fur7 ther amended by adding at the end the following: 

8 ‘‘(B) ADDITIONAL BALLISTIC MISSILE-RE9 LATED GOODS, SERVICES, AND TECHNOLOGY.— 

10 ‘‘(i) ADDITIONAL AUTHORITY.—The 

11 President shall impose the sanctions de12 scribed in paragraph (8), (10), or (12) of 

13 section 6(a), as the case may be, with re14 spect to— 

15 ‘‘(I) an agency or instrumentality 

16 of the Government of Iran if the 

17 agency or instrumentality, on or after 

18 the date of the enactment of this sub19 paragraph, seeks to develop, procure, 

20 or acquire goods, services, or tech21 nology that materially contributes to 

22 efforts by the Government of Iran 

23 with respect to ballistic missile-related 

24 goods, services, and technologies as 

25 described in clause (iii); 


asabaliauskas on DSK3SPTVN1PROD with BILLS
9 

•HR 1698 IH

1 ‘‘(II) a foreign person or an 

2 agency or instrumentality of a foreign 

3 state if the person or agency or in4 strumentality knowingly, on or after 

5 the date of the enactment of this 

6 paragraph, provides material support 

7 to the Government of Iran that mate8 rially contributes to efforts by the 

9 Government of Iran with respect to 

10 ballistic missile-related goods, services, 

11 and technologies as described in 

12 clause (iii); and 

13 ‘‘(III) a foreign person that the 

14 President determines knowingly en15 gages in a significant transaction or 

16 transactions with, or provides signifi17 cant financial services for, a foreign 

18 person or an agency or instrumen19 tality of a foreign state described in 

20 subclause (I) or (II) with respect to 

21 ballistic missile-related goods, services, 

22 and technologies as described in 

23 clause (iii). 

24 ‘‘(ii) DETERMINATION ON BALLISTIC

25 MISSILE TESTS.— 


asabaliauskas on DSK3SPTVN1PROD with BILLS
10 

•HR 1698 IH

1 ‘‘(I) IN GENERAL.—Not later 

2 than 30 days after the date on which 

3 the President receives credible infor4 mation that the Government of Iran 

5 has conducted a test of a ballistic mis6 sile, the President shall submit to the 

7 Committee on Foreign Affairs of the 

8 House of Representatives and the 

9 Committee on Foreign Relations of 

10 the Senate a determination of whether 

11 or not the test of such missile fails to 

12 comply with, violates, or is in defiance 

13 of United Nations Security Council 

14 Resolution 2231 (2015). 

15 ‘‘(II) REPORT.— 

16 ‘‘(aa) IN GENERAL.—If the 

17 President determines pursuant to 

18 subclause (I) that the test of a 

19 ballistic missile fails to comply 

20 with, violates, or is in defiance of 

21 United Nations Security Council 

22 Resolution 2231 (2015), the 

23 President shall transmit to the 

24 Committee on Foreign Affairs of 

25 the House of Representatives and 


asabaliauskas on DSK3SPTVN1PROD with BILLS
11 

•HR 1698 IH

1 the Committee on Foreign Rela2 tions of the Senate a report 

3 that— 

4 ‘‘(AA) identifies each 

5 Iranian person that the 

6 President determines is re7 sponsible for ordering, con8 trolling, or otherwise direct9 ing the missile test described 

10 in subclause (I); 

11 ‘‘(BB) determines 

12 whether the persons de13 scribed in sub-item (AA) 

14 have been designated for 

15 their activities in support of 

16 Iran’s ballistic missile pro17 gram, and if not, so des18 ignated, the reasons there19 for; and 

20 ‘‘(CC) describes the 

21 steps the President is taking 

22 to respond to the ballistic 

23 missile test described in sub24 clause (I). 


asabaliauskas on DSK3SPTVN1PROD with BILLS
12 

•HR 1698 IH

1 ‘‘(bb) FORM.—The report 

2 required by item (aa) shall be 

3 submitted in unclassified form, 

4 but may contain a classified 

5 annex. 

6 ‘‘(iii) EFFORTS BY THE GOVERNMENT

7 OF IRAN WITH RESPECT TO BALLISTIC

8 MISSILE-RELATED GOODS, SERVICES, AND

9 TECHNOLOGIES DESCRIBED.—For pur10 poses of subclauses (I) and (II) of clause 

11 (i), efforts by the Government of Iran with 

12 respect to ballistic missile-related goods, 

13 services, and technologies described in this 

14 subsection are efforts by the Government 

15 of Iran to manufacture, acquire, possess, 

16 develop, transport, transfer, test or use 

17 ballistic missiles or associated goods, serv18 ices, or technology by the Government of 

19 Iran in violation of section 3 of Annex B 

20 of United Nations Security Council Resolu21 tion 2231 (2015), including efforts by the 

22 Government of Iran to manufacture, ac23 quire, possess, develop, transport, transfer, 

24 purchase— 


asabaliauskas on DSK3SPTVN1PROD with BILLS
13 

•HR 1698 IH

1 ‘‘(I) goods, services, or tech2 nology listed on the Missile Tech3 nology Control Regime Equipment 

4 and Technology Annex of October 8, 

5 2015, and subsequent revisions that 

6 have been acquired outside of the Pro7 curement Working Group; or 

8 ‘‘(II) goods, services, or tech9 nology not described in the matter 

10 preceding subclause (I) or subclause 

11 (I) but which nevertheless the Presi12 dent determines would be, if such 

13 goods, services, or technology were 

14 United States goods, services, or tech15 nology, prohibited for export to Iran 

16 because of their potential to make a 

17 material contribution to the develop18 ment of ballistic missile systems or 

19 ballistic missile launch technologies. 

20 ‘‘(iv) PROCUREMENT WORKING GROUP

21 DEFINED.—In clause (iii)(I), the term 

22 ‘procurement working group’ means the 

23 Procurement Working Group of the Joint 

24 Commission established under Annex IV of 

25 the applicable provisions in Annex A of 


asabaliauskas on DSK3SPTVN1PROD with BILLS
14 

•HR 1698 IH

1 United Nations Security Council Resolu2 tion 2231 (2015).’’. 

3 (g) SANCTIONABLE ACTIVITIES WITH RESPECT TO

4 CONVENTIONAL WEAPONS.—Paragraph (1) of section 

5 5(b) of the Iran Sanctions Act of 1996 (Public Law 104– 

6 172; 50 U.S.C. 1701 note), as amended by subsections 

7 (e) and (f), is further amended by adding at the end the 

8 following: 

9 ‘‘(C) CONVENTIONAL WEAPONS.—The 

10 President shall impose the sanctions described 

11 in paragraph (8) or (12) of section 6(a), as the 

12 case may be, with respect to a foreign person 

13 or an agency or instrumentality of a foreign 

14 state if the President determines that the per15 son or agency or instrumentality knowingly, on 

16 or after the date of the enactment of this para17 graph, imports, exports, or re-exports to, into, 

18 or from Iran, whether directly or indirectly, any 

19 significant arms or related materiel prohibited 

20 under Annex B of United Nations Security 

21 Council Resolution 2231 (2015).’’. 

22 (h) EXCEPTION AND DEFINITIONS.—Paragraph (1) 

23 of section 5(b) of the Iran Sanctions Act of 1996 (Public 

24 Law 104–172; 50 U.S.C. 1701 note), as amended by subVerDate Sep 11 2014 20:27 Mar 28, 2017 Jkt 069200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\H1698.IH H1698

asabaliauskas on DSK3SPTVN1PROD with BILLS
15 

•HR 1698 IH

1 sections (e), (f), and (g), is further amended by adding 

2 at the end the following: 

3 ‘‘(D) EXCEPTION.—The President may not 

4 impose sanctions under subparagraph (B) or 

5 (C) with respect to a foreign person or a United 

6 States person if the President determines that 

7 the person has exercised due diligence in estab8 lishing and enforcing official policies, proce9 dures, and controls to ensure that the person 

10 does not sell, supply, or transfer to or from 

11 Iran materials the sale, supply, or transfer of 

12 which would subject a person to the imposition 

13 of sanctions under subparagraph (B) or (C), as 

14 the case may be, or conduct or facilitate a fi15 nancial transaction for such a sale, supply, or 

16 transfer. 

17 ‘‘(E) DEFINITIONS.—In subparagraphs 

18 (B) and (C) of this paragraph: 

19 ‘‘(i) AGENCY OR INSTRUMEN20 TALITY.—The term ‘agency or instrumen21 tality’ has the meaning given such term in 

22 section 1603(b) of title 28, United States 

23 Code. 

24 ‘‘(ii) FOREIGN STATE.—The term 

25 ‘foreign state’ has the meaning given such 


asabaliauskas on DSK3SPTVN1PROD with BILLS
16 

•HR 1698 IH

1 term in section 1603(a) of title 28, United 

2 States Code. 

3 ‘‘(iii) GOVERNMENT OF IRAN.—The 

4 term ‘Government of Iran’ has the mean5 ing given such term in section 561.404 of 

6 title 31, Code of Federal Regulations, as 

7 such section was in effect on January 1, 

8 2016. 

9 ‘‘(iv) SIGNIFICANT TRANSACTION OR

10 TRANSACTIONS; SIGNIFICANT FINANCIAL

11 SERVICES.—The terms ‘significant trans12 action or transactions’ and ‘significant fi13 nancial services’ shall be determined, for 

14 purposes of sections 101 and 102, in ac15 cordance with section 561.404 of title 31, 

16 Code of Federal Regulations, as such sec17 tion 561.404 was in effect on January 1, 

18 2016.’’. 

19 (i) SANCTIONS DESCRIBED.—Section 6(a) of the Iran 

20 Sanctions Act of 1996 (Public Law 104–172; 50 U.S.C. 

21 1701 note) is amended— 

22 (1) by striking paragraph (10) and inserting 

23 the following: 

24 ‘‘(10) INADMISSIBILITY TO UNITED STATES.— 

25 The President may direct the Secretary of State to 


asabaliauskas on DSK3SPTVN1PROD with BILLS
17 

•HR 1698 IH

1 deny a visa to, and the Secretary of Homeland Secu2 rity to exclude from the United States and, if the in3 dividual has been issued a visa or other documenta4 tion, revoke, in accordance with section 221(i) of the 

5 Immigration and Nationality Act (8 U.S.C. 1201(i)) 

6 of the visa or other documentation any alien that— 

7 ‘‘(A) is designated pursuant to subpara8 graph (B) or (C) of section 5(b)(1); or 

9 ‘‘(B) the President determines is a cor10 porate officer or principal of, or a shareholder 

11 with a controlling interest in, a sanctioned per12 son.’’; 

13 (2) by redesignating paragraph (12) as para14 graph (13); and 

15 (3) by inserting after paragraph (11) the fol16 lowing: 

17 ‘‘(12) EXPORT SANCTION.—In the case of an 

18 agency or instrumentality of a foreign state, no item 

19 on the United States Munitions List or Commerce 

20 Munitions List may be exported to that foreign state 

21 for a period of two years.’’. 

22 (j) RULE OF CONSTRUCTION.—The sanctions that 

23 are required to be imposed under this section and the 

24 amendments made by this section are in addition to other 


asabaliauskas on DSK3SPTVN1PROD with BILLS
18 

•HR 1698 IH

1 similar or related sanctions that are required to be im2 posed under any other provision of law. 

3 SEC. 3. REPORT ON SANCTIONABLE ACTIVITIES. 

4 (a) IN GENERAL.—Not later than 120 days after the 

5 date of the enactment of this Act, and every 90 days there6 after, the President shall submit to the appropriate con7 gressional committees a report that contains the following 

8 information: 

9 (1) Any credible information regarding Iran’s 

10 attempts to develop, procure, or acquire goods, serv11 ices, or technology with respect to which sanctions 

12 may be imposed pursuant to subparagraphs (B) and 

13 (C) of section 5(b)(1) of the Iran Sanctions Act of 

14 1996 (Public Law 104–172; 50 U.S.C. 1701 note), 

15 as added by section 3 of this Act. 

16 (2) Any credible information regarding Iran’s 

17 acquisition or attempted acquisition of significant 

18 arms and related material in violation of paragraph 

19 5 of Annex B of United Nations Security Council 

20 Resolution 2231 (2015). 

21 (3) Any credible information regarding Iran’s 

22 export or attempted export of significant arms and 

23 related material in violation of paragraph 5 of 

24 Annex B of United Nations Security Council Resolu25 tion 2231 (2015). 


asabaliauskas on DSK3SPTVN1PROD with BILLS
19 

•HR 1698 IH

1 (4) Any approval granted by the United Na2 tions Security Council for the export of significant 

3 arms and related material identified under para4 graph 5 of Annex B of United Nations Security 

5 Council Resolution 2231 (2015). 

6 (b) FORM.—The report required by subsection (a) 

7 shall be submitted in unclassified form, but may contain 

8 a classified annex. 

9 SEC. 4. REGULATORY AUTHORITY. 

10 (a) IN GENERAL.—The President shall, not later 

11 than 120 days after the date of the enactment of this Act, 

12 promulgate regulations as necessary for the implementa13 tion of this Act and the amendments made by this Act. 

14 (b) NOTIFICATION TO CONGRESS.—Not less than 10 

15 days before the promulgation of regulations under sub16 section (a), the President shall notify the appropriate con17 gressional committees of the proposed regulations and the 

18 provisions of this Act and the amendments made by this 

19 Act that the regulations are implementing. 

20 SEC. 5. DEFINITIONS. 

21 In this Act: 

22 (1) APPROPRIATE CONGRESSIONAL COMMIT23 TEES.—The term ‘‘appropriate congressional com24 mittees’’ means the Committee on Foreign Affairs of 


asabaliauskas on DSK3SPTVN1PROD with BILLS
20 

•HR 1698 IH

1 the House of Representatives and the Committee on 

2 Foreign Relations of the Senate. 

3 (2) CREDIBLE INFORMATION.—The term ‘‘cred4 ible information’’ has the meaning given such term 

5 in section 14 of the Iran Sanctions Act of 1996 

6 (Public Law 104–172; 50 U.S.C. 1701 note). 

7 (3) GOVERNMENT OF IRAN.—The term ‘‘Gov8 ernment of Iran’’ has the meaning given such term 

9 in section 561.404 of title 31, Code of Federal Reg10 ulations, as such section was in effect on January 1, 

11 2016. 

Æ 


asabaliauskas on DSK3SPTVN1PROD with BILLS