I
104TH CONGRESS
1ST SESSION
H. R. 2458
To impose sanctions on foreign persons exporting certain goods or technology
that would enhance Iran’s ability to extract, refine, store, process, or
transport petroleum products or natural gas.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 11, 1995
Mr. GILMAN (for himself, Mr. KING, Mr. SHAW, Mr. BERMAN, and Mr.
FORBES) introduced the following bill; which was referred to the Commit-
tee on International Relations, and in addition to the Committees on
Ways and Means, Banking and Financial Services, Commerce, and Gov-
ernment Reform and Oversight, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions
as fall within the jurisdiction of the committee concerned
A BILL
To impose sanctions on foreign persons exporting certain
goods or technology that would enhance Iran’s ability
to extract, refine, store, process, or transport petroleum
products or natural gas.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Iran Foreign Oil Sanc-
tions Act of 1995’’.
SEC. 2. FINDINGS.
The Congress makes the following findings:
(1) The efforts of the Government of Iran to
acquire weapons of mass destruction and the means
to deliver them endanger potentially the national se-
curity and foreign policy interests of the United
States and those countries with which it shares com-
mon strategic and foreign policy objectives.
(2) The objective of preventing the proliferation
of weapons of mass destruction through existing
multilateral and bilateral initiatives requires addi-
tional efforts to deny Iran the financial means to
sustain its nuclear, chemical, biological, and missile
weapons programs.
SEC. 3. DECLARATION OF POLICY.
The Congress declares that it is the policy of the
United States to deny Iran the ability to fund the develop-
ment and acquisition of weapons of mass destruction and
the means to deliver them by preventing Iran from acquir-
ing equipment that would enhance Iran’s ability to extract,
refine, process, store, or transport petroleum, petroleum
products, or natural gas.
(1) the foreign person with respect to whom the
President makes the determination described in that
subsection;
(2) any successor entity to that foreign person;
(3) any foreign person that is a parent or sub-
sidiary of that person if that parent or subsidiary
with requisite knowledge engaged in the activities
which were the basis of that determination; and
(4) any foreign person that is an affiliate of
that person if that affiliate with requisite knowledge
engaged in the activities which were the basis of that
determination and if that affiliate is controlled in
fact by that person.
For purposes of this Act, any person or entity described
in this subsection shall be referred to as a ‘‘sanctioned
foreign person’’.
SEC. 5. DESCRIPTION OF SANCTIONS.
The sanctions to be imposed on a sanctioned foreign
person under section 4(a) are as follows:
(1) MANDATORY SANCTIONS.—
(A) PROCUREMENT SANCTION.—The Unit-
ed States Government shall not procure, or
enter into any contract for the procurement of,
any goods or services from the sanctioned for-
eign person.
(B) 
EXPORT
SANCTION.—The 
United
States Government shall not, for a period of 3
years, issue any license or grant any other per-
mission or authority to export any goods or
technology to a sanctioned foreign person
under—
(i) the Export Administration Act of
1979;
(ii) the Arms Export Control Act; or
(iii) the Atomic Energy Act of 1954.
(C) PROHIBITION
AGAINST
EXPORT-IM-
PORT BANK ASSISTANCE FOR EXPORTS TO FOR-
EIGN PERSONS.—The Export-Import Bank of
the United States may not guarantee, insure,
extend credit, or participate in the extension of
credit in connection with the export of any
goods or services to any sanctioned foreign per-
son.
(2) DISCRETIONARY SANCTIONS.—
(A) INVESTMENT IN THE UNITED STATES;
AUTHORITY TO REVIEW CERTAIN MERGERS, AC-
QUISITIONS, AND TAKEOVERS.—The President
may exercise his authority under section 721(d)
of the Defense Production Act of 1950 (50
U.S.C. App. 2170(d)) to investigate and pro-
hibit mergers, acquisitions, takeovers, and other
similar investments in the United States by per-
sons engaged in interstate commerce—
(i) if such actions involve any sanc-
tioned foreign person; and
(ii) if the President finds, in addition
to the requirements of section 721(e) of
such Act, that the participation of any
sanctioned foreign person in activities to
assist, directly or indirectly, Iran to in-
crease the revenue available to that govern-
ment by extracting petroleum, petroleum
products, natural gas, or engaging in other
activities described in section 9(a)(1)
threatens to impair the national security
and foreign policy interests of the United
States.
(B) IMPORT SANCTION.—(i) The importa-
tion into the United States of products pro-
duced by any sanctioned foreign person may be
prohibited.
(ii) Clause (i) includes application to—
(I) the entry of any finished product
or component part, whether shipped di-
rectly by the sanctioned foreign person or
by another entity; and
(II) the contracting with a sanctioned
foreign person for the provision of services
in the United States or abroad by United
States persons and by foreign persons in
the United States.
(C) LOANS FROM UNITED STATES FINAN-
CIAL INSTITUTIONS.—The United States Gov-
ernment may prohibit any United States finan-
cial institution from making any loan or provid-
ing any credit to any sanctioned foreign person
unless such foreign person is engaged in activi-
ties to relieve human suffering, within the
meaning of section 203(b)(2) of the Inter-
national Emergency Economic Powers Act (50
U.S.C. 1702(b)(2)).
(D) PROHIBITIONS
ON
FOREIGN
FINAN-
CIAL
INSTITUTIONS.—The following prohibi-
tions may be imposed against a sanctioned for-
eign person that is a financial institution:
(i) DESIGNATION AS PRIMARY DEAL-
ER.—Neither the Board of Governors of
the Federal Reserve System nor the Fed-
eral Reserve Bank of New York may des-
ignate, or permit the continuation of any
prior designation of, such financial institu-
tion as a primary dealer in United States
Government debt instruments.
(ii) GOVERNMENT
FUNDS.—Such fi-
nancial institution shall not serve as agent
of the United States Government or serve
as repository for United States Govern-
ment funds.
(iii) 
RESTRICTIONS
ON
OPER-
ATIONS.—Such financial institutions shall
not, directly or indirectly—
(I) commence any line of busi-
ness in the United States in which it
was not engaged as of the date of the
determination by the President under
section 4(a) leading to the imposition
of sanctions; or
(II) conduct business from any
location in the United States at which
it did not conduct business as of the
date of such determination by the
President under section 4(a).
SEC. 
6. 
WAIVER 
AUTHORITY 
REGARDING 
SANCTIONS
AGAINST IRAN.
The sanctions under section 5 shall not apply if the
President determines and certifies to the appropriate con-
gressional committees that Iran—
(1) has substantially improved its adherence to
internationally recognized standards of human
rights;
(2) 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;
(C) missiles and missile launch technology;
and
(D) any missile or other delivery system
capable of reaching the territory of a country
the government of which shares strategic inter-
ests with the United States and is engaged in
defense cooperation, including the acquisition of
items identified in the United States Munitions
List, with the United States; and
(3) has ceased all forms of support for inter-
national terrorism.
the President determines and certifies to the Con-
gress that the government with primary jurisdiction
over the foreign person is in the process of taking
the actions described in paragraph (2).
(4) REPORT TO CONGRESS.—Not later than 45
days after making a determination under section
4(a), the President shall submit to the appropriate
congressional committees a report on the status of
consultations with the appropriate foreign govern-
ment under this subsection, and the basis for any
determination under paragraph (3) that such gov-
ernment has taken specific corrective actions.
(b) ASSURANCES FROM FOREIGN PERSONS.—The
President may terminate the sanctions against a sanc-
tioned foreign person, if the foreign person provides assur-
ances to the Secretary that the actions that resulted in
the determination to impose sanctions have been termi-
nated and has provided specific assurances that it will nei-
ther directly nor indirectly, or through any other person,
including subsidiaries and affiliates, direct or participate
in any activity to provide to Iran items on the List.
(c) EXCEPTIONS.—The President shall not be re-
quired to apply or maintain a sanction under section
4(a)—
(1) in the case of procurement of defense arti-
cles or defense services—
(A) under existing contracts or sub-
contracts, 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 or other entity to which the
sanction would otherwise be applied is a sole
source supplier of the defense articles or serv-
ices, that the defense articles or services are es-
sential, and that alternative sources are not
readily or reasonably available; or
(C) if the President determines in writing
that such articles or services are essential to the
national security under defense coproduction
agreements;
(2) to products or services provided under con-
tracts entered into before the date on which the
President publishes his intention to impose the sanc-
tion;
(3) to—
(A) spare parts which are essential to
United States products or production;
(B) component parts, but not finished
products, essential 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;
(4) to information and technology essential to
United States products or production; or
(5) to medicines, medical supplies, or other hu-
manitarian items.
(d) PRESIDENTIAL NATIONAL SECURITY WAIVER.—
(1) The President may waive the requirement in section
4(a) to impose a sanction or sanctions on a foreign person
in section 4(b), for an export, transfer, or release of goods
or technology that are not subject to the jurisdiction of
the United States, 15 days after the President determines
and so reports to the appropriate congressional commit-
tees that it is essential to the national interest of the Unit-
ed States to exercise such waiver authority.
(2) Any such report shall provide a specific and de-
tailed rationale for such determination, including—
(A) a description of the conduct, including the
identification of the goods or technology involved in
the violation, that resulted in the determination of a
violation or violations;
(B) an explanation of the efforts to secure the
cooperation of the government with primary jurisdic-
tion of the foreign person committing the violation
to terminate or penalize the activities that resulted
in the determination of a violation;
(C) an estimate as to the significance of the
goods or technology exported to Iran on that coun-
try’s ability to extract, refine, process, store, or
transport petroleum, petroleum products, or natural
gas; and
(D) a statement as to the response of the Unit-
ed States in the event that such foreign person en-
gages in other activities that under this Act would
constitute an additional violation.
SEC. 8. TERMINATION OF SANCTIONS.
(a) DURATION OF SANCTIONS.—The sanctions im-
posed pursuant to this Act shall apply for a period of not
less than 12 months following the determination by the
President under section 4(a) and shall cease to apply
thereafter only if the President determines and certifies
to the Congress that reliable information indicates that
the foreign person with respect to which the determination
was made under section 4(a) has ceased to aid or abet
Iran, any national of Iran, or any entity owned or con-
trolled by Iran or nationals of Iran, to acquire goods and
technology on the List.
(b) WAIVER.—
(1) CRITERION
FOR
WAIVER.—The President
may waive the continued application of any sanction
imposed on any foreign person pursuant to this Act,
after the end of the 12-month period beginning on
the date on which that sanction was imposed on that
person, if the President determines and certifies to
the Congress that the continued imposition of the
sanction would have a serious adverse effect on
United States national security.
(2) NOTIFICATION OF AND REPORT TO CON-
GRESS.—If the President decides to exercise the
waiver authority provided in paragraph (1), the
President shall so notify the Congress not less than
30 days before the waiver takes effect. Such notifica-
tion shall include a report fully articulating the ra-
tionale and circumstances which led the President to
exercise the waiver authority.
SEC. 9. GOODS AND TECHNOLOGY SUBJECT TO EXPORT
CONTROL RESTRICTIONS.
(a) CONTROL LIST.—(1) For purposes of the deter-
minations to be made pursuant to section 4(a), the Presi-
dent, in consultation with the Secretary of State and the