Iran and Libya Sanctions Act

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Iran and Libya Sanctions Act of 1995
House Government Reform and Oversight
  • Passed the House on June 19, 1996 (415–0, Roll call vote 250, via Clerk.House.gov)
  • Passed the Senate on July 16, 1996 (passed unanimous consent) with amendment
  • House agreed to Senate amendment on July 23, 1996 (agreed without objection)
  • Signed into law by President Bill Clinton
    • on August 5, 1996

    The Iran and Libya Sanctions Act of 1996 (ILSA) was a 1996

    Executive Order to terminate the national emergency with respect to Libya and to end IEEPA-based economic sanctions on Libya. On September 30, 2006, the Act was renamed the Iran Sanctions Act (ISA). The Act was originally limited to five years, and has been extended several times. On December 1, 2016, ISA was extended for a further ten years.[2]

    The Act empowers the President to waive sanctions on a case-by-case basis, which is subject to renewal every six months. As at March 2008, ISA sanctions had not been enforced against any non-US company. Despite the restrictions on American investment in Iran,

    Iranian expatriates based in the US continue to make substantial investments in Iran.[3]

    Background

    In 1995, in response to the

    executive orders with respect to Iran, including Executive Order 12957 of March 15, 1995, banning U.S. investment in Iran's energy sector, and Executive Order 12959 of May 6, 1995, which banned U.S. trade with and investment
    in Iran.

    Provisions

    The Act targets both U.S. and non-U.S. business making certain investments in Iran. Under ISA, unless exempted by the president, all foreign companies that provide investments over $20 million for the development of petroleum resources in Iran will be imposed two out of seven possible sanctions, by the U.S.:[4]

    • denial of
      Export-Import Bank of the United States
      assistance
    • denial of export licenses for exports to the violating company
    • prohibition on loans or credits from U.S. financial institutions of over $10 million in any 12-month period
    • prohibition on designation as a primary dealer for U.S. government debt instruments
    • prohibition on serving as an agent of the United States or as a repository for U.S. government funds
    • denial of U.S. government procurement opportunities (consistent with World Trade Organization obligations), and
    • a ban on all or some imports of the violating company.

    Renewal and expiration

    ILSA included a five-year

    sunset clause and was to expire on August 5, 2001. In the debate in the U.S. Congress on whether ILSA should expire, some legislators argued sanctions hindered bilateral relations, and others argued they would be seen as a concession on an effective program. ILSA was renewed by the Congress and signed by President George W. Bush.[5] ILSA was renewed for another five years,[6]
    until August 2006.

    In 2005, the Iran Freedom Support bill was introduced in both

    committee on March 15, 2006, and passed the House on April 26, 2006, by a vote of 397–21, with 14 not voting. The companion Senate legislation, S. 333 was introduced on February 9, 2005, was referred to the Foreign Relations Committee
    . The bill was not reported by the committee and died.

    On July 25, 2006, bill H.R. 5877, to extend ILSA until September 29, 2006, was introduced in the House, and passed the next day by voice vote. It was passed by the Senate by unanimous consent on July 31, and was signed into law by President George W. Bush on August 4, 2006.

    On September 30, 2006, ILSA was renamed the Iran Sanctions Act (ISA), as it no longer applied to Libya, and extended until December 31, 2011. The Iran Freedom and Support Act passed later that year. The Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 amended the Iran Sanctions Act to expand the president's ability to punish companies aiding Iran's petroleum sector.

    On December 1, 2016, ISA was extended for a further ten years.[2]

    See also

    References

    1. ^ "H.R.3107 - Iran and Libya Sanctions Act of 1996". www.congress.gov. 1996. Retrieved May 18, 2020.
    2. ^ a b Zengerle, Patricia (1 December 2016). "Extension of Iran Sanctions Act passes U.S. Congress". Reuters. Retrieved 2 December 2016.
    3. ^ "Iran", Investment regulations, Economist Intelligence Unit, 19 March 2008
    4. ISBN 978-0-86372-321-6
    5. ^ "Archived copy" (PDF). Archived from the original (PDF) on 2016-12-19. Retrieved 2017-06-25.{{cite web}}: CS1 maint: archived copy as title (link)
    6. ^ Public Law 107-24

    External links

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