§8803 Imposition of sanctions with respect to the energy, shipping, and shipbuilding sectors of Iran

Summary

The law requires the President to freeze and ban U.S. dealings with Iran’s energy, shipping, and shipbuilding sectors, port operators, and their affiliates, and with anyone who knowingly gives them major support. It goes into effect 180 days after January 2, 2013. Assets and property in the United States, or under U.S. control, must be blocked. The National Iranian Oil Company, the National Iranian Tanker Company, and the Islamic Republic of Iran Shipping Lines are specifically named. The President must also impose 5 or more sanctions from the Iran Sanctions Act on people who, on or after 180 days after January 2, 2013, sell or move significant goods or services for those sectors. Foreign banks that knowingly move large payments for those energy, shipping, or shipbuilding deals can lose access to U.S. correspondent or payable-through accounts. An “Iranian financial institution” for this law means one not already designated for proliferation, terrorism, or human-rights sanctions. The law does not cover sales of agricultural goods, food, medicine, or medical devices, or humanitarian aid. It allows an exception for Afghan reconstruction if the President says it’s in the national interest and tells Congress at least 15 days beforehand. The rules about buying Iranian oil apply only when a separate presidential finding under section 8513a(d)(4)(B) is in effect, and there are narrow exceptions for certain countries and for some bank transactions that keep funds in the bank’s home country. Natural gas sales are generally not covered, but banks that process gas payments can be targeted unless the payments stay in the bank’s country and the trade is not otherwise sanctioned. The President can waive these sanctions for up to 180 days at a time, renewable, if he says the waiver is vital to U.S. national security and sends a written justification to Congress in unclassified form (with an optional classified annex).