The Iran and Libya Sanctions Act of 1996 (ILSA) was a 1996 act of the United States Congress that imposed

economic sanction Economic sanctions or embargoes are commercial and financial penalties applied by states or institutions against states, groups, or individuals. Economic sanctions are a form of coercion that attempts to get an actor to change its behavior throu ...

s on firms doing business with

Iran Iran, officially the Islamic Republic of Iran (IRI) and also known as Persia, is a country in West Asia. It borders Iraq to the west, Turkey, Azerbaijan, and Armenia to the northwest, the Caspian Sea to the north, Turkmenistan to the nort ...

and

Libya Libya, officially the State of Libya, is a country in the Maghreb region of North Africa. It borders the Mediterranean Sea to the north, Egypt to Egypt–Libya border, the east, Sudan to Libya–Sudan border, the southeast, Chad to Chad–L ...

. On September 20, 2004, the President signed an

Executive Order In the United States, an executive order is a directive by the president of the United States that manages operations of the federal government. The legal or constitutional basis for executive orders has multiple sources. Article Two of the ...

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. 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, FIPPA provisions apply to all foreign investors, and many Iranian expatriates based in the US continue to make substantial investments in Iran.

Background

In 1995, in response to the

Iranian nuclear program The nuclear program of Iran is one of the most scrutinized nuclear programs in the world. The military capabilities of the program are possible through its mass enrichment activities in facilities such as Natanz and Arak. In June 2025, t ...

and Iranian

support Support may refer to: Arts, entertainment, and media * Supporting character * Support (art), a solid surface upon which a painting is executed Business and finance * Support (technical analysis) * Child support * Customer support * Income Su ...

for

Hezbollah Hezbollah ( ; , , ) is a Lebanese Shia Islamist political party and paramilitary group. Hezbollah's paramilitary wing is the Jihad Council, and its political wing is the Loyalty to the Resistance Bloc party in the Lebanese Parliament. I ...

Hamas The Islamic Resistance Movement, abbreviated Hamas (the Arabic acronym from ), is a Palestinian nationalist Sunni Islam, Sunni Islamism, Islamist political organisation with a military wing, the Qassam Brigades. It has Gaza Strip under Hama ...

, and Palestine Islamic Jihad, that are considered terrorist organizations by the US,

President President most commonly refers to: *President (corporate title) * President (education), a leader of a college or university *President (government title) President may also refer to: Arts and entertainment Film and television *'' Præsident ...

Bill Clinton William Jefferson Clinton (né Blythe III; born August 19, 1946) is an American politician and lawyer who was the 42nd president of the United States from 1993 to 2001. A member of the Democratic Party (United States), Democratic Party, ...

had issued several

executive orders ''Executive Orders'' is a techno-thriller novel, written by Tom Clancy and released on July 1, 1996. It picks up immediately where the final events of '' Debt of Honor'' (1994) left off, and features now- U.S. President Jack Ryan as he tries ...

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 Investment is traditionally defined as the "commitment of resources into something expected to gain value over time". If an investment involves money, then it can be defined as a "commitment of money to receive more money later". From a broade ...

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 Petroleum, also known as crude oil or simply oil, is a naturally occurring, yellowish-black liquid chemical mixture found in geological formations, consisting mainly of hydrocarbons. The term ''petroleum'' refers both to naturally occurring un ...

resources in Iran will be imposed two out of seven possible sanctions, by the U.S.: * 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 institution A financial institution, sometimes called a banking institution, is a business entity that provides service as an intermediary for different types of financial monetary transactions. Broadly speaking, there are three major types of financial ins ...

s 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 Procurement is the process of locating and agreeing to terms and purchasing goods, services, or other works from an external source, often with the use of a tendering or competitive bidding process. The term may also refer to a contractual ...

opportunities (consistent with

World Trade Organization The World Trade Organization (WTO) is an intergovernmental organization headquartered in Geneva, Switzerland that regulates and facilitates international trade. Governments use the organization to establish, revise, and enforce the rules that g ...

obligations), and * a ban on all or some imports of the violating company.

Renewal and expiration

ILSA included a five-year

sunset clause In public policy, a sunset provision or sunset clause is a measure within a statute, regulation, or other law that provides for the law to cease to be effective after a specified date, unless further legislative action is taken to extend it. Unli ...

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 George Walker Bush (born July 6, 1946) is an American politician and businessman who was the 43rd president of the United States from 2001 to 2009. A member of the Bush family and the Republican Party (United States), Republican Party, he i ...

. ILSA was renewed for another five years,

Public Law Public law is the part of law that governs relations and affairs between legal persons and a government, between different institutions within a state, between different branches of governments, as well as relationships between persons that ...

107-24 until August 2006. In 2005, the Iran Freedom Support bill was introduced in both

houses A house is a single-unit residential building. It may range in complexity from a rudimentary hut to a complex structure of wood, masonry, concrete or other material, outfitted with plumbing, electrical, and heating, ventilation, and air condi ...

to extend the provisions of ILSA indefinitely and to impose a time limit for the administration to determine whether an investment violates ILSA. The

House of Representatives House of Representatives is the name of legislative bodies in many countries and sub-national entities. In many countries, the House of Representatives is the lower house of a bicameral legislature, with the corresponding upper house often ...

legislation, H.R. 282 was introduced on January 6, 2005, was reported by

committee A committee or commission is a body of one or more persons subordinate to a deliberative assembly or other form of organization. A committee may not itself be considered to be a form of assembly or a decision-making body. Usually, an assembly o ...

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 In parliamentary procedure, a voice vote (from the Latin ''viva voce'', meaning "by live voice") or acclamation is a voting method in deliberative assemblies (such as legislatures) in which a group vote is taken on a topic or motion by respondin ...

. It was passed by the Senate by

unanimous consent In parliamentary procedure, unanimous consent, also known as general consent, or in the case of the parliaments under the Westminster system, leave of the house (or leave of the senate), is a situation in which no member present objects to a propo ...

on July 31, and was signed into law by

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 The Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (; CISADA) is a law passed by the U.S. Congress that applies further sanctions on the government of Iran. CISADA extended U.S. economic sanctions placed on Iran under ...

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.

References

External links

US Treasury - Iran sanctions
{{Iran–United States relations Acts of the 104th United States Congress Acts of the 107th United States Congress Iran–United States relations United States foreign relations legislation 1996 in international relations Libya–United States relations Sanctions against Iran Sanctions against Libya Sanctions legislation United States sanctions Foreign policy of the George W. Bush administration

Background

Provisions

Renewal and expiration

See also

References

External links