22 USC CHAPTER 92, SUBCHAPTER VI: STOP HARBORING IRANIAN PETROLEUM

From Title 22—FOREIGN RELATIONS AND INTERCOURSECHAPTER 92—COMPREHENSIVE IRAN SANCTIONS, ACCOUNTABILITY, AND DIVESTMENT

SUBCHAPTER VI—STOP HARBORING IRANIAN PETROLEUM

Editorial Notes

Codification

Subchapter was enacted as the Stop Harboring Iranian Petroleum Act, also known as the SHIP Act, and not as part of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 which comprises this chapter.

§8571. Statement of policy

It is the policy of the United States—

(1) to deny Iran the ability to engage in destabilizing activities, support international terrorism, fund the development and acquisition of weapons of mass destruction and the means to deliver such weapons by limiting export of petroleum and petroleum products by Iran;

(2) to deny Iran funds to oppress and commit human rights violations against the Iranian people assembling to peacefully redress the Iranian regime;

(3) to fully enforce sanctions against those entities which provide support to the Iranian energy sector; and

(4) to counter Iran's actions to finance and facilitate the participation of foreign terrorist organizations in ongoing conflicts and illicit activities due to the threat such actions pose to the vital national interests of the United States.

(Pub. L. 118–50, div. J, §2, Apr. 24, 2024, 138 Stat. 963.)

Editorial Notes

Codification

Section was enacted as part of the Stop Harboring Iranian Petroleum Act, also known as the SHIP Act, and not as part of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 which comprises this chapter.

Statutory Notes and Related Subsidiaries

Short Title

For short title of this subchapter as the "Stop Harboring Iranian Petroleum Act", also known as the "SHIP Act", see section 1 of div. J of Pub. L. 118–50, set out as a Short Title of 2024 Amendment note under section 8501 of this title.

§8572. Imposition of sanctions with respect to Iranian petroleum

(a) In general

On and after the date that is 180 days after April 24, 2024, and except as provided in subsection (e)(2), the President shall impose the sanctions described in subsection (c) with respect to each foreign person that the President determines knowingly engaged, on or after April 24, 2024, in an activity described in subsection (b).

(b) Activities described

A foreign person engages in an activity described in this subsection if the foreign person—

(1) owns or operates a foreign port at which, on or after April 24, 2024, such person knowingly permits to dock a vessel—

(A) that is included on the list of specially designated nationals and blocked persons maintained by the Office of Foreign Assets Control of the Department of the Treasury for transporting Iranian crude oil or petroleum products; or

(B) of which the operator or owner of such vessel otherwise knowingly engages in a significant transaction involving such vessel to transport, offload, or deal in significant transactions in condensate, refined, or unrefined petroleum products, or other petrochemical products originating from the Islamic Republic of Iran;

(2) owns or operates a vessel through which such owner knowingly conducts a ship to ship transfer involving a significant transaction of any petroleum product originating from the Islamic Republic of Iran;

(3) owns or operates a refinery through which such owner knowingly engages in a significant transaction to process, refine, or otherwise deal in any petroleum product originating from the Islamic Republic of Iran;

(4) is a covered family member of a foreign person described in paragraph (1), (2), or (3); or

(5) is owned or controlled by a foreign person described in paragraph (1), (2), or (3), and knowingly engages in an activity described in paragraph (1), (2), or (3).

(c) Sanctions described

The sanctions described in this subsection with respect to a foreign person described in subsection (a) are the following:

(1) Sanctions on foreign vessels

Subject to such regulations as the President may prescribe, the President may prohibit a vessel described in subsection (b)(1)(A) or (b)(1)(B) from landing at any port in the United States—

(A) with respect to a vessel described in subsection (b)(1)(A), for a period of not more than 2 years beginning on the date on which the President imposes sanctions with respect to a related foreign port described in subsection (b)(1)(A); and

(B) with respect to a vessel described in subsection (b)(1)(B), for a period of not more than 2 years.

(2) Blocking of property

The President shall exercise all of the powers granted to the President under the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) to the extent necessary to block and prohibit all transactions in property and interests in property of the foreign person if such property and interests in property are in the United States, come within the United States, or are or come within the possession or control of a United States person.

(3) Ineligibility for visas, admission, or parole

(A) Visas, admission, or parole

An alien described in subsection (a) is—

(i) inadmissible to the United States;

(ii) ineligible to receive a visa or other documentation to enter the United States; and

(iii) otherwise ineligible to be admitted or paroled into the United States or to receive any other benefit under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.).

(B) Current visas revoked

(i) In general

An alien described in subsection (a) is subject to revocation of any visa or other entry documentation regardless of when the visa or other entry documentation is or was issued.

(ii) Immediate effect

A revocation under clause (i) shall take effect immediately and automatically cancel any other valid visa or entry documentation that is in the alien's possession.

(C) Exceptions

Sanctions under this paragraph shall not apply with respect to an alien if admitting or paroling the alien into the United States is necessary—

(i) to permit the United States to comply with the Agreement regarding the Headquarters of the United Nations, signed at Lake Success June 26, 1947, and entered into force November 21, 1947, between the United Nations and the United States, or other applicable international obligations; or

(ii) to carry out or assist law enforcement activity in the United States.

(4) Penalties

The penalties provided for in subsections (b) and (c) of section 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705) shall apply to a person that violates, attempts to violate, conspires to violate, or causes a violation of this section or any regulations promulgated to carry out this section to the same extent that such penalties apply to a person that commits an unlawful act described in section 206(a) of that Act.

(d) Rules of construction

(1) For purposes of determinations under subsection (a) that a foreign person engaged in activities described in subsection (b), a foreign person shall not be determined to know that petroleum or petroleum products originated from Iran if such person relied on a certificate of origin or other documentation confirming that the origin of the petroleum or petroleum products was a country other than Iran, unless such person knew or had reason to know that such documentation was falsified.

(2) Nothing in this subchapter shall be construed to affect the availability of any existing authorities to issue waivers, exceptions, exemptions, licenses, or other authorization.

(e) Implementation; regulations

(1) In general

The President may exercise all authorities under sections 203 and 205 of the International Emergency Economic Powers Act (50 U.S.C. 1702 and 1704) for purposes of carrying out this section.

(2) Deadline for regulations

Not later than 180 days after April 24, 2024, the President shall prescribe such regulations as may be necessary for the implementation of this subchapter.

(3) Notification to Congress

Not later than 10 days before the prescription of regulations under paragraph (2), the President shall brief and provide written notification to the appropriate congressional committees regarding—

(A) the proposed regulations; and

(B) the specific provisions of this subchapter that the regulations are implementing.

(f) Exception for humanitarian assistance

(1) In general

Sanctions under this section shall not apply to—

(A) the conduct or facilitation of a transaction for the provision of agricultural commodities, food, medicine, medical devices, or humanitarian assistance, or for humanitarian purposes; or

(B) transactions that are necessary for or related to the activities described in subparagraph (A).

(2) Definitions

In this subsection:

(A) Agricultural commodity

The term "agricultural commodity" has the meaning given that term in section 5602 of title 7.

(B) Medical device

The term "medical device" has the meaning given the term "device" in section 321 of title 21.

(C) Medicine

The term "medicine" has the meaning given the term "drug" in section 321 of title 21.

(g) Exception for safety of vessels and crew

Sanctions under this section shall not apply with respect to a person providing provisions to a vessel otherwise subject to sanctions under this section if such provisions are intended for the safety and care of the crew aboard the vessel, the protection of human life aboard the vessel, or the maintenance of the vessel to avoid any environmental or other significant damage.

(h) Waiver

(1) In general

The President may, on a case-by-case basis and for periods not to exceed 180 days each, waive the application of sanctions imposed with respect to a foreign person under this section if the President certifies to the appropriate congressional committees, not later than 15 days after such waiver is to take effect, that the waiver is vital to the national interests of the United States.

(2) Special rule

The President shall not be required to impose sanctions under this section with respect to a foreign person described in subsection (a) if the President certifies in writing to the appropriate congressional committees that the foreign person—

(A) is no longer engaging in activities described in subsection (b); or

(B) has taken and is continuing to take significant, verifiable steps toward permanently terminating such activities.

(i) Termination

The authorities provided by this section shall cease to have effect on and after the date that is 30 days after the date on which the President certifies to the appropriate congressional committees that—

(1) the Government of Iran no longer repeatedly provides support for international terrorism as determined by the Secretary of State pursuant to—

(A) section 4813(c)(1)(A) of title 50;

(B) section 2371 of this title;

(D) any other provision of law; and

(2) Iran has ceased the pursuit, acquisition, and development of, and verifiably dismantled, its nuclear, biological, and chemical weapons, ballistic missiles, and ballistic missile launch technology.

(Pub. L. 118–50, div. J, §3, Apr. 24, 2024, 138 Stat. 963.)

Editorial Notes

References in Text

The International Emergency Economic Powers Act, referred to in subsec. (c)(2), is title II of Pub. L. 95–223, Dec. 28, 1977, 91 Stat. 1626, which is classified generally to chapter 35 (§1701 et seq.) of Title 50, War and National Defense. For complete classification of this Act to the Code, see Short Title note set out under section 1701 of Title 50 and Tables.

The Immigration and Nationality Act, referred to in subsec. (c)(3)(A)(iii), is act June 27, 1952, ch. 477, 66 Stat. 163, which is classified principally to chapter 12 (§1101 et seq.) of Title 8, Aliens and Nationality. For complete classification of this Act to the Code, see Short Title note set out under section 1101 of Title 8 and Tables.

Codification

§8573. Report on Iranian petroleum and petroleum products exports

(a) In general

Not later than 120 days after April 24, 2024, and annually thereafter until the date described in subsection (d), the Administrator of the Energy Information Administration shall submit to the appropriate congressional committees a report describing Iran's growing exports of petroleum and petroleum products, that includes the following:

(1) An analysis of Iran's exports and sale of petroleum and petroleum products, including—

(A) an estimate of Iran's petroleum export and sale revenue per year since 2018;

(B) an estimate of Iran's petroleum export and sale revenue to China per year since 2018;

(D) the amount of petroleum and crude oil barrels exported to China per year since 2018;

(E) the amount of petroleum and crude oil barrels exported to countries other than China per year since 2018;

(F) the average price per petroleum and crude oil barrel exported per year since 2018; and

(G) the average price per petroleum and crude oil barrel exported to China per year since 2018.

(2) An analysis of Iran's labeling practices of exported petroleum and petroleum products.

(3) A description of companies involved in the exporting and sale of Iranian petroleum and petroleum products.

(4) A description of ships involved in the exporting and sale of Iranian petroleum and petroleum products.

(5) A description of ports involved in the exporting and sale of Iranian petroleum and petroleum products.

(b) Form

The report required by subsection (a) shall be submitted in unclassified form but may include a classified annex.

(c) Publication

The unclassified portion of the report required by subsection (a) shall be posted on a publicly available website of the Energy Information Administration.

(d) Termination

The requirement to submit reports under this section shall be terminated on the date on which the President makes the certification described in section 8572(i) of this title.

(Pub. L. 118–50, div. J, §4, Apr. 24, 2024, 138 Stat. 967.)

Editorial Notes

Codification

§8574. Strategy to counter role of the People's Republic of China in evasion of sanctions with respect to Iran

(a) In general

Not later than 120 days after April 24, 2024, the Secretary of State, in consultation with the heads of other appropriate Federal agencies, shall submit to the appropriate congressional committees a written strategy, and provide to those committees an accompanying briefing, on the role of the People's Republic of China in evasion of sanctions imposed by the United States with respect to Iranian-origin petroleum products that includes an assessment of options—

(1) to strengthen the enforcement of such sanctions; and

(2) to expand sanctions designations targeting the involvement of the People's Republic of China in the production, transportation, storage, refining, and sale of Iranian-origin petroleum products.

(b) Elements

The strategy required by subsection (a) shall include—

(1) a description and assessment of the use of sanctions in effect before April 24, 2024, to target individuals and entities of the People's Republic of China that are directly or indirectly associated with smuggling of Iranian-origin petroleum products;

(2) an assessment of—

(A) Iranian-owned entities operating in the People's Republic of China and involved in petroleum refining supply chains;

(B) the People's Republic of China's role in global petroleum refining supply chains;

(C) how the People's Republic of China leverages its role in global petroleum supply chains to achieve political objectives;

(D) the People's Republic of China's petroleum importing and exporting partners;

(E) what percent of the People's Republic of China's energy consumption is linked to illegally imported Iranian-origin petroleum products; and

(F) what level of influence the Chinese Communist Party holds over non-state, semi-independent "teapot" refineries;

(3) a detailed plan for—

(A) monitoring the maritime domain for sanctionable activity related to smuggling of Iranian-origin petroleum products;

(B) identifying the individuals, entities, and vessels engaging in sanctionable activity related to Iranian-origin petroleum products, including—

(i) vessels—

(I) transporting petrochemicals subject to sanctions;

(II) conducting ship-to-ship transfers of such petrochemicals;

(III) with deactivated automatic identification systems; or

(IV) that engage in "flag hopping" by changing national registries;

(ii) individuals or entities—

(I) storing petrochemicals subject to sanctions; or

(II) refining or otherwise processing such petrochemicals; and

(iii) through the use of port entry and docking permission of vessels subject to sanctions;

(i) insurance providers;

(ii) parent companies; and

(iii) vessel operators;

(D) collaborating with allies and partners of the United States engaged in the Arabian Peninsula, including through standing or new maritime task forces, to build sanctions enforcement capacity through assistance and training to defense and law enforcement services; and

(E) using public communications and global diplomatic engagements to highlight the role of illicit petroleum product smuggling in bolstering Iran's support for terrorism and its nuclear program; and

(4) an assessment of—

(A) the total number of vessels smuggling Iranian-origin petroleum products;

(B) the total number of vessels smuggling such petroleum products destined for the People's Republic of China;

(D) interference by the People's Republic of China with attempts by the United States to investigate or enforce sanctions on illicit Iranian petroleum product exports;

(E) the effectiveness of the use of sanctions with respect to insurers of entities that own or operate vessels involved in smuggling Iranian-origin petroleum products;

(F) the personnel and resources needed to enforce sanctions with respect to Iranian-origin petroleum products; and

(G) the impact of smuggled illicit Iranian-origin petroleum products on global energy markets.

(c) Form

The strategy required by subsection (a) shall be submitted in unclassified form, but may include a classified index.

(Pub. L. 118–50, div. J, §5, Apr. 24, 2024, 138 Stat. 967.)

Editorial Notes

Codification

§8575. Definitions

In this subchapter:

(1) Appropriate congressional committees

The term "appropriate congressional committees" means—

(A) the Committee on Foreign Affairs, the Committee on the Judiciary, and the Committee on Financial Services of the House of Representatives; and

(B) the Committee on Foreign Relations, the Committee on the Judiciary, and the Committee on Banking, Housing, and Urban Affairs of the Senate.

(2) Covered family member

The term "covered family member", with respect to a foreign person who is an individual, means a spouse, adult child, parent, or sibling of the person who engages in the sanctionable activity described under section 8572 of this title or who demonstrably benefits from such activity.

(Pub. L. 118–50, div. J, §6, Apr. 24, 2024, 138 Stat. 969.)