‘‘(14) TRANSFER.—The term ‘transfer’ means 
the conveyance of technological or intellectual prop-
erty, or the conversion of intellectual or technological 
advances into marketable goods, services, or articles 
of value, developed and generated in one place, to 
another through illegal or illicit means to a country, 
the government of which the Secretary of State has 
determined, for purposes of section 6(j)(1)(A) of the 
Export Administration Act of 1979 (as in effect pur-
suant to the International Emergency Economic 
Powers Act; 50 U.S.C. 1701 et seq.), section 40(d) 
of the Arms Export Control Act (22 U.S.C. 
2780(d)), and section 620A of the Foreign Assist-
ance Act of 1961 (22 U.S.C. 2371), is a government 
that has repeatedly provided support for acts of 
international terrorism. 
‘‘(15) TRANSSHIPMENT.—The term ‘trans-
shipment’ means the export from one country to an-
other that passes through a third country, in which 
cargo is off-loaded and there is some change to con-
veyance.’’. 
SEC. 202. IMPORT SANCTIONS. 
(a) PROHIBITION ON IMPORTS.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), no article that is the growth, product, or 
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manufacture of Iran may be imported directly or in-
directly into the United States. 
(2) EXCEPTION.—The prohibition described in 
paragraph (1) shall not apply to imports from Iran 
of information and informational materials. 
(b) WAIVER.—The President may waive the applica-
tion on a case-by-case basis of the prohibition described 
in subsection (a) if the President— 
(1) determines that such a waiver is vital to the 
national security interest of the United States; and 
(2) submits to the appropriate congressional 
committees a report describing the reasons for such 
determination. 
SEC. 203. EXPANSION AND CLARIFICATION OF ENTITIES 
AGAINST WHICH SANCTIONS MAY BE IM-
POSED PURSUANT TO THE IRAN SANCTIONS 
ACT OF 1996. 
(a) PERSON.—Section 14(13)(B) of the Iran Sanc-
tions Act of 1996 (50 U.S.C. 1701 note) is amended— 
(1) by inserting ‘‘financial institution, insurer, 
underwriter, guarantor, and any other business or-
ganization, including any foreign subsidiary, parent, 
or affiliate of the foregoing,’’ after ‘‘trust,’’; and 
(2) by inserting ‘‘, such as an export credit 
agency’’ before the semicolon. 
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(b) PETROLEUM RESOURCES.—Section 14(14) of the 
Iran Sanctions Act of 1996 (50 U.S.C. 1701 note) is 
amended to read as follows: 
‘‘(14) PETROLEUM RESOURCES.— 
‘‘(A) PETROLEUM RESOURCES.—The term 
‘petroleum resources’ includes petroleum, petro-
leum by-products, oil or liquefied natural gas, 
oil or liquefied natural gas tankers, and prod-
ucts used to construct or maintain pipelines 
used to transport oil or compressed or liquefied 
natural gas. 
‘‘(B) 
PETROLEUM
BY-PRODUCTS.—The 
term ‘petroleum by-products’ means gasoline, 
kerosene, distillates, propane or butane gas, die-
sel fuel, residual fuel oil, and other goods classi-
fied in headings 2709 and 2710 of the Har-
monized Tariff Schedule of the United States.’’. 
SEC. 204. APPLICATION TO SUBSIDIARIES. 
(a) IN GENERAL.—Except as provided in subsection 
(b), in any case in which an entity engages in an act out-
side the United States which, if committed in the United 
States or by a United States person, would violate Execu-
tive Order No. 12959 of May 6, 1995, Executive Order 
No. 13059 of August 19, 1997, or any other prohibition 
on transactions with respect to Iran that is imposed under 
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the International Emergency Economic Powers Act (50 
U.S.C. 1701 et seq.) and if such entity was created or 
availed of for the purpose of engaging in such an act, the 
parent company of such entity shall be subject to the pen-
alties for such violation to the same extent as if such par-
ent company had engaged in such act. 
(b) EXCEPTION.—Subsection (a) shall not apply to 
an act carried out under a contract or other obligation 
of an entity if such contract or obligation was entered into 
before the acquisition of such entity by a parent company 
unless such parent company acquired such entity knowing 
or having reason to know that such contract or other obli-
gation existed or such contract or other obligation is ex-
panded to cover additional activities beyond the terms of 
such contract or other obligation as it existed at the time 
of such acquisition. 
(c) DEFINITIONS.—In this section— 
(1) the term ‘‘entity’’ means a partnership, as-
sociation, trust, joint venture, corporation, or other 
organization; 
(2) an entity is a ‘‘parent company’’ of another 
entity if it owns, directly or indirectly, more than 50 
percent of the equity interest in that other entity 
and is a United States person; and 
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