H. R. 3107—4
(c) PERSONS AGAINST WHICH
THE SANCTIONS ARE TO BE
IMPOSED.—The sanctions described in subsections (a) and (b) shall
be imposed on—
(1) any person the President determines has carried out
the activities described in subsection (a) or (b); and
(2) any person the President determines—
(A) is a successor entity to the person referred to
in paragraph (1);
(B) is a parent or subsidiary of the person referred
to in paragraph (1) if that parent or subsidiary, with actual
knowledge, engaged in the activities referred to in para-
graph (1); or
(C) is an affiliate of the person referred to in paragraph
(1) if that affiliate, with actual knowledge, engaged in
the activities referred to in paragraph (1) and if that affili-
ate is controlled in fact by the person referred to in para-
graph (1).
For purposes of this Act, any person or entity described in this
subsection shall be referred to as a ‘‘sanctioned person’’.
(d) PUBLICATION IN FEDERAL REGISTER.—The President shall
cause to be published in the Federal Register a current list of
persons and entities on whom sanctions have been imposed under
this Act. The removal of persons or entities from, and the addition
of persons and entities to, the list, shall also be so published.
(e) PUBLICATION OF PROJECTS.—The President shall cause to
be published in the Federal Register a list of all significant projects
which have been publicly tendered in the oil and gas sector in
Iran.
(f) EXCEPTIONS.—The President shall not be required to apply
or maintain the sanctions under subsection (a) or (b)—
(1) in the case of procurement of defense articles or defense
services—
(A) under existing contracts or subcontracts, including
the exercise of options for production quantities to satisfy
requirements essential to the national security of the
United States;
(B) if the President determines in writing that the
person to which the sanctions would otherwise be applied
is a sole source supplier of the defense articles or services,
that the defense articles or services are essential, and
that alternative sources are not readily or reasonably avail-
able; or
(C) if the President determines in writing that such
articles or services are essential to the national security
under defense coproduction agreements;
(2) in the case of procurement, to eligible products, as
defined in section 308(4) of the Trade Agreements Act of 1979
(19 U.S.C. 2518(4)), of any foreign country or instrumentality
designated under section 301(b)(1) of that Act (19 U.S.C.
2511(b)(1));
(3) to products, technology, or services provided under con-
tracts entered into before the date on which the President
publishes in the Federal Register the name of the person on
whom the sanctions are to be imposed;
(4) to—
(A) spare parts which are essential to United States
products or production;
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(B) component parts, but not finished products, essen-
tial to United States products or production; or
(C) routine servicing and maintenance of products, to
the extent that alternative sources are not readily or
reasonably available;
(6) to information and technology essential to United States
products or production; or
(7) to medicines, medical supplies, or other humanitarian
items.
SEC. 6. DESCRIPTION OF SANCTIONS.
The sanctions to be imposed on a sanctioned person under
section 5 are as follows:
(1) EXPORT-IMPORT BANK ASSISTANCE FOR EXPORTS TO SANC-
TIONED PERSONS.—The President may direct the Export-Import
Bank of the United States not to give approval to the issuance
of any guarantee, insurance, extension of credit, or participation
in the extension of credit in connection with the export of
any goods or services to any sanctioned person.
(2) EXPORT
SANCTION.—The President may order the
United States Government not to issue any specific license
and not to grant any other specific permission or authority
to export any goods or technology to a sanctioned person
under—
(i) the Export Administration Act of 1979;
(ii) the Arms Export Control Act;
(iii) the Atomic Energy Act of 1954; or
(iv) any other statute that requires the prior review
and approval of the United States Government as a condi-
tion for the export or reexport of goods or services.
(3) LOANS FROM UNITED STATES FINANCIAL INSTITUTIONS.—
The United States Government may prohibit any United States
financial institution from making loans or providing credits
to any sanctioned person totaling more than $10,000,000 in
any 12-month period unless such person is engaged in activities
to relieve human suffering and the loans or credits are provided
for such activities.
(4) PROHIBITIONS ON FINANCIAL INSTITUTIONS.—The follow-
ing prohibitions may be imposed against a sanctioned person
that is a financial institution:
(A) 
PROHIBITION
ON
DESIGNATION
AS
PRIMARY
DEALER.—Neither the Board of Governors of the Federal
Reserve System nor the Federal Reserve Bank of New
York may designate, or permit the continuation of any
prior designation of, such financial institution as a primary
dealer in United States Government debt instruments.
(B) PROHIBITION
ON
SERVICE
AS
A
REPOSITORY
OF
GOVERNMENT FUNDS.—Such financial institution may not
serve as agent of the United States Government or serve
as repository for United States Government funds.
The imposition of either sanction under subparagraph (A) or
(B) shall be treated as 1 sanction for purposes of section 5,
and the imposition of both such sanctions shall be treated
as 2 sanctions for purposes of section 5.
(5) PROCUREMENT SANCTION.—The United States Govern-
ment may not procure, or enter into any contract for the
procurement of, any goods or services from a sanctioned person.
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(6) ADDITIONAL
SANCTIONS.—The President may impose
sanctions, as appropriate, to restrict imports with respect to
a sanctioned person, in accordance with the International Emer-
gency Economic Powers Act (50 U.S.C. 1701 and following).
SEC. 7. ADVISORY OPINIONS.
The Secretary of State may, upon the request of any person,
issue an advisory opinion to that person as to whether a proposed
activity by that person would subject that person to sanctions
under this Act. Any person who relies in good faith on such an
advisory opinion which states that the proposed activity would
not subject a person to such sanctions, and any person who there-
after engages in such activity, will not be made subject to such
sanctions on account of such activity.
SEC. 8. TERMINATION OF SANCTIONS.
(a) IRAN.—The requirement under section 5(a) to impose sanc-
tions shall no longer have force or effect with respect to Iran
if the President determines and certifies to the appropriate congres-
sional committees that Iran—
(1) has ceased its efforts to design, develop, manufacture,
or acquire—
(A) a nuclear explosive device or related materials
and technology;
(B) chemical and biological weapons; and
(C) ballistic missiles and ballistic missile launch tech-
nology; and
(2) has been removed from the list of countries the govern-
ments of which have been determined, for purposes of section
6(j) of the Export Administration Act of 1979, to have repeatedly
provided support for acts of international terrorism.
(b) LIBYA.—The requirement under section 5(b) to impose sanc-
tions shall no longer have force or effect with respect to Libya
if the President determines and certifies to the appropriate congres-
sional committees that Libya has fulfilled the requirements of
United Nations Security Council Resolution 731, adopted January
21, 1992, United Nations Security Council Resolution 748, adopted
March 31, 1992, and United Nations Security Council Resolution
883, adopted November 11, 1993.
SEC. 9. DURATION OF SANCTIONS; PRESIDENTIAL WAIVER.
(a) DELAY OF SANCTIONS.—
(1) CONSULTATIONS.—If the President makes a determina-
tion described in section 5(a) or 5(b) with respect to a foreign
person, the Congress urges the President to initiate consulta-
tions immediately with the government with primary jurisdic-
tion over that foreign person with respect to the imposition
of sanctions under this Act.
(2) ACTIONS BY GOVERNMENT OF JURISDICTION.—In order
to pursue consultations under paragraph (1) with the govern-
ment concerned, the President may delay imposition of sanc-
tions under this Act for up to 90 days. Following such consulta-
tions, the President shall immediately impose sanctions unless
the President determines and certifies to the Congress that
the government has taken specific and effective actions, includ-
ing, as appropriate, the imposition of appropriate penalties,
to terminate the involvement of the foreign person in the activi-
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ties that resulted in the determination by the President under
section 5(a) or 5(b) concerning such person.
(3) ADDITIONAL DELAY IN IMPOSITION OF SANCTIONS.—The
President may delay the imposition of sanctions for up to an
additional 90 days if the President determines and certifies
to the Congress that the government with primary jurisdiction
over the person concerned is in the process of taking the actions
described in paragraph (2).
(4) REPORT TO CONGRESS.—Not later than 90 days after
making a determination under section 5(a) or 5(b), the Presi-
dent shall submit to the appropriate congressional committees
a report on the status of consultations with the appropriate
foreign government under this subsection, and the basis for
any determination under paragraph (3).
(b) DURATION OF SANCTIONS.—A sanction imposed under section
5 shall remain in effect—
(1) for a period of not less than 2 years from the date
on which it is imposed; or
(2) until such time as the President determines and certifies
to the Congress that the person whose activities were the
basis for imposing the sanction is no longer engaging in such
activities and that the President has received reliable assur-
ances that such person will not knowingly engage in such
activities in the future, except that such sanction shall remain
in effect for a period of at least 1 year.
(c) PRESIDENTIAL WAIVER.—
(1) AUTHORITY.—The President may waive the requirement
in section 5 to impose a sanction or sanctions on a person
described in section 5(c), and may waive the continued imposi-
tion of a sanction or sanctions under subsection (b) of this
section, 30 days or more after the President determines and
so reports to the appropriate congressional committees that
it is important to the national interest of the United States
to exercise such waiver authority.
(2) CONTENTS OF REPORT.—Any report under paragraph
(1) shall provide a specific and detailed rationale for the deter-
mination under paragraph (1), including—
(A) a description of the conduct that resulted in the
determination under section 5(a) or (b), as the case may
be;
(B) in the case of a foreign person, an explanation
of the efforts to secure the cooperation of the government
with primary jurisdiction over the sanctioned person to
terminate or, as appropriate, penalize the activities that
resulted in the determination under section 5(a) or (b),
as the case may be;
(C) an estimate as to the significance—
(i) of the provision of the items described in section
5(a) to Iran’s ability to develop its petroleum resources,
or
(ii) of the provision of the items described in section
5(b)(1) to the abilities of Libya described in subpara-
graph (A), (B), or (C) of section 5(b)(1), or of the invest-
ment described in section 5(b)(2) on Libya’s ability
to develop its petroleum resources,
as the case may be; and