SHIP Act

II Calendar No. 240 118TH CONGRESS 1ST SESSION H. R. 3774 IN THE SENATE OF THE UNITED STATES NOVEMBER 6, 2023 Received; read the first time NOVEMBER 7, 2023 Read the second time and placed on the calendar AN ACT To impose additional sanctions with respect to the importa- tion or facilitation of the importation of petroleum prod- ucts from Iran, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Stop Harboring Ira- 4 nian Petroleum Act’’ or the ‘‘SHIP Act’’. 5 SEC. 2. STATEMENT OF POLICY. 6 It is the policy of the United States— 7 (1) to deny Iran the ability, by limiting Iran’s 8 export of petroleum and petroleum products, to— 9 VerDate Sep 11 2014 02:20 Nov 08, 2023 Jkt 049200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3774.PCS H3774 kjohnson on DSK7ZCZBW3PROD with $$_JOB 2 HR 3774 PCS (A) engage in destabilizing activities; 1 (B) support international terrorism; or 2 (C) fund the development and acquisition 3 of weapons of mass destruction and weapons 4 delivery systems; 5 (2) to deny Iran funds to oppress and commit 6 human rights violations against the Iranian people 7 assembling to peacefully redress the Iranian regime; 8 (3) to fully enforce sanctions against those enti- 9 ties which provide support to the Iranian energy sec- 10 tor; and 11 (4) to counter Iran’s actions to finance and fa- 12 cilitate the participation of foreign terrorist organi- 13 zations in ongoing conflicts and illicit activities due 14 to the threat such actions pose to the vital national 15 interests of the United States. 16 SEC. 3. IMPOSITION OF SANCTIONS WITH RESPECT TO IRA- 17 NIAN PETROLEUM. 18 (a) IN GENERAL.—On and after the date that is 90 19 days after the date of the enactment of this Act, and ex- 20 cept as provided in subsection (e)(2), the President shall 21 impose the sanctions described in subsection (c) with re- 22 spect to each foreign person that the President deter- 23 mines, on or after such date of enactment, engages in an 24 activity described in subsection (b). 25 VerDate Sep 11 2014 02:20 Nov 08, 2023 Jkt 049200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3774.PCS H3774 kjohnson on DSK7ZCZBW3PROD with $$_JOB 3 HR 3774 PCS (b) ACTIVITIES DESCRIBED.—A foreign person en- 1 gages in an activity described in this subsection if the for- 2 eign person— 3 (1) owns or operates a foreign port and has 4 knowingly facilitated or accommodated at least 1 5 designated vessel in landing at such port on or after 6 the date of enactment of this Act for the purpose of 7 transporting Iranian crude oil; 8 (2) knowingly transports, offloads, or otherwise 9 engages in transactions involving petroleum or petro- 10 leum products, including petrochemicals, originating 11 from Iran; 12 (3) knowingly owns or operates a vessel used to 13 conduct ship-to-ship transfers of petroleum or petro- 14 leum products, including petrochemicals, originating 15 from Iran; 16 (4) owns or operates a refinery that knowingly 17 processes, refines, or otherwise engages in trans- 18 actions involving petroleum or petroleum products, 19 including petrochemicals, originating from Iran; 20 (5) is an adult family member of a foreign per- 21 son described in any of paragraphs (1) through (4), 22 unless the President determines there is clear and 23 convincing evidence that such adult family member 24 has disassociated themselves from the foreign person 25 VerDate Sep 11 2014 02:20 Nov 08, 2023 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3774.PCS H3774 kjohnson on DSK7ZCZBW3PROD with $$_JOB 4 HR 3774 PCS described in such paragraph and has not assisted 1 such foreign person in concealing assets; or 2 (6) is owned, as such term is defined by section 3 510.411 of title 31, Code of Federal Regulations, by 4 a foreign person described in any of paragraphs (1) 5 through (5) that has been designated for such con- 6 duct. 7 (c) SANCTIONS DESCRIBED.—The sanctions de- 8 scribed in this subsection with respect to a foreign person 9 described in subsection (a) are the following: 10 (1) BLOCKING OF PROPERTY.—The President 11 shall exercise all of the powers granted to the Presi- 12 dent under the International Emergency Economic 13 Powers Act (50 U.S.C. 1701 et seq.) to the extent 14 necessary to block and prohibit all transactions in 15 property and interests in property of the foreign per- 16 son if such property and interests in property are in 17 the United States, come within the United States, or 18 are or come within the possession or control of a 19 United States person. 20 (2) INELIGIBILITY FOR VISAS, ADMISSION, OR 21 PAROLE.— 22 (A) VISAS, ADMISSION, OR PAROLE.—An 23 alien described in subsection (a) is— 24 (i) inadmissible to the United States; 25 VerDate Sep 11 2014 02:20 Nov 08, 2023 Jkt 049200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3774.PCS H3774 kjohnson on DSK7ZCZBW3PROD with $$_JOB 5 HR 3774 PCS (ii) ineligible to receive a visa or other 1 documentation to enter the United States; 2 and 3 (iii) otherwise ineligible to be admitted 4 or paroled into the United States or to re- 5 ceive any other benefit under the Immigra- 6 tion and Nationality Act (8 U.S.C. 1101 et 7 seq.). 8 (B) CURRENT VISAS REVOKED.— 9 (i) IN GENERAL.—An alien described 10 in subsection (a) is subject to revocation of 11 any visa or other entry documentation re- 12 gardless of when the visa or other entry 13 documentation is or was issued. 14 (ii) IMMEDIATE EFFECT.—A revoca- 15 tion under clause (i) shall take effect im- 16 mediately and automatically cancel any 17 other valid visa or entry documentation 18 that is in the alien’s possession. 19 (C) EXCEPTIONS.—Sanctions under this 20 paragraph shall not apply with respect to an 21 alien if admitting or paroling the alien into the 22 United States is necessary— 23 (i) to permit the United States to 24 comply with the Agreement regarding the 25 VerDate Sep 11 2014 02:20 Nov 08, 2023 Jkt 049200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3774.PCS H3774 kjohnson on DSK7ZCZBW3PROD with $$_JOB 6 HR 3774 PCS Headquarters of the United Nations, 1 signed at Lake Success June 26, 1947, 2 and entered into force November 21, 1947, 3 between the United Nations and the 4 United States, or other applicable inter- 5 national obligations; or 6 (ii) to carry out or assist law enforce- 7 ment activity in the United States. 8 (3) PENALTIES.—The penalties provided for in 9 subsections (b) and (c) of section 206 of the Inter- 10 national Emergency Economic Powers Act (50 11 U.S.C. 1705) shall apply to a person that violates, 12 attempts to violate, conspires to violate, or causes a 13 violation of this section or any regulations promul- 14 gated to carry out this section to the same extent 15 that such penalties apply to a person that commits 16 an unlawful act described in section 206(a) of that 17 Act. 18 (d) RULE OF CONSTRUCTION.—For purposes of de- 19 terminations under subsection (a) that a foreign person 20 engaged in activities described in subsection (b), a foreign 21 person shall not be determined to know that petroleum 22 or petroleum products originated from Iran if such person 23 relied on a certificate of origin or other documentation 24 confirming that the origin of the petroleum or petroleum 25 VerDate Sep 11 2014 02:20 Nov 08, 2023 Jkt 049200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H3774.PCS H3774 kjohnson on DSK7ZCZBW3PROD with $$_JOB 7 HR 3774 PCS products was a country other than Iran, unless such per- 1 son knew or had reason to know that such documentation 2 was falsified. 3 (e) IMPLEMENTATION; REGULATIONS.— 4 (1) IN GENERAL.—The President may exercise 5 all authorities under sections 203 and 205 of the 6 International Emergency Economic Powers Act (50 7 U.S.C. 1702 and 1704) for purposes of carrying out 8 this section. 9 (2) DEADLINE FOR REGULATIONS.—Not later 10 than 180 days after the date of the enactment of 11 this Act, the President shall prescribe such regula- 12 tions as may be necessary for the implementation of 13 this Act. 14 (3) NOTIFICATION TO CONGRESS.—Not later 15 than 10 days before the prescription of regulations 16 under paragraph (2), the President shall brief and 17 provide written notification to the appropriate con- 18 gressional committees regarding— 19 (A) the proposed regulations; and 20 (B) the specific provisions of this Act that 21 the regulations are implementing. 22 (f) WAIVER.— 23 (1) IN GENERAL.—The President may, on a 24 case-by-case basis and for periods not to exceed 180 25 VerDate Sep 11 2014 02:20 Nov 08, 2023 Jkt 049200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H3774.PCS H3774 kjohnson on DSK7ZCZBW3PROD with $$_JOB 8 HR 3774 PCS days each, waive the application of sanctions im- 1 posed with respect to a foreign person under this 2 section if the President certifies to the appropriate 3 congressional committees, not later than 15 days be- 4 fore such waiver is to take effect, that the waiver is 5 vital to the national interests of the United States. 6 (2) SPECIAL RULE.—The President shall not be 7 required to impose sanctions under this section with 8 respect to a foreign person described in subsection 9 (a) if the President certifies in writing to the appro- 10 priate congressional committees that the foreign per- 11 son— 12 (A) is no longer engaging in activities de- 13 scribed in subsection (b); or 14 (B) has taken and is continuing to take 15 significant, verifiable steps toward permanently 16 terminating such activities. 17 (f) TERMINATION.—The authorities provided by this 18 section shall cease to have effect on and after the date 19 that is 30 days after the date on which the President cer- 20 tifies to the appropriate congressional committees that— 21 (1) the Government of Iran no longer repeat- 22 edly provides support for international terrorism as 23 determined by the Secretary of State pursuant to— 24 VerDate Sep 11 2014 02:20 Nov 08, 2023 Jkt 049200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H3774.PCS H3774 kjohnson on DSK7ZCZBW3PROD with $$_JOB 9 HR 3774 PCS (A) section 1754(c)(1)(A) of the Export 1 Control Reform Act of 2018 (50 U.S.C. 2 4318(c)(1)(A)); 3 (B) section 620A of the Foreign Assistance 4 Act of 1961 (22 U.S.C. 2371); 5 (C) section 40 of the Arms Export Control 6 Act (22 U.S.C. 2780); or 7 (D) any other provision of law; and 8 (2) Iran has ceased the pursuit, acquisition, 9 and development of, and verifiably dismantled, its 10 nuclear, biological, and chemical weapons, ballistic 11 missiles, and ballistic missile launch technology. 12 SEC. 4. REPORT ON IRANIAN PETROLEUM AND PETRO- 13 LEUM PRODUCTS EXPORTS. 14 (a) IN GENERAL.—Not later than 120 days after the 15 date of enactment of this Act, and annually thereafter 16 until the date described in subsection (d), the Adminis- 17 trator of the Energy Information Administration shall 18 submit to the appropriate congressional committees a re- 19 port describing Iran’s growing exports of petroleum and 20 petroleum products, that includes the following: 21 (1) An analysis of Iran’s exports and sale of pe- 22 troleum and petroleum products, including— 23 (A) an estimate of Iran’s petroleum export 24 and sale revenue per year since 2018; 25 VerDate Sep 11 2014 02:20 Nov 08, 2023 Jkt 049200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H3774.PCS H3774 kjohnson on DSK7ZCZBW3PROD with $$_JOB 10 HR 3774 PCS (B) an estimate of Iran’s petroleum export 1 and sale revenue to China per year since 2018; 2 (C) the amount of petroleum and crude oil 3 barrels exported per year since 2018; 4 (D) the amount of petroleum and crude oil 5 barrels exported to China per year since 2018; 6 (E) the amount of petroleum and crude oil 7 barrels exported to countries other than China 8 per year since 2018; 9 (F) the average price per petroleum and 10 crude oil barrel exported per year since 2018; 11 and 12 (G) the average price per petroleum and 13 crude oil barrel exported to China per year 14 since 2018. 15 (2) An analysis of Iran’s labeling practices of 16 exported petroleum and petroleum products. 17 (3) A description of companies involved in the 18 exporting and sale of Iranian petroleum and petro- 19 leum products. 20 (4) A description of ships involved in the ex- 21 porting and sale of Iranian petroleum and petroleum 22 products. 23 VerDate Sep 11 2014 02:20 Nov 08, 2023 Jkt 049200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H3774.PCS H3774 kjohnson on DSK7ZCZBW3PROD with $$_JOB 11 HR 3774 PCS (5) A description of ports involved in the ex- 1 porting and sale of Iranian petroleum and petroleum 2 products. 3 (b) FORM.—The report required by subsection (a) 4 shall be submitted in unclassified form but may include 5 a classified annex. 6 (c) PUBLICATION.—The unclassified portion of the 7 report required by subsection (a) shall be posted on a pub- 8 licly available website of the Energy Information Adminis- 9 tration. 10 (d) TERMINATION.—The requirement to submit re- 11 ports under this section shall be terminated on the date 12 on which the President makes the certification described 13 in section 3(f). 14 SEC. 5. EXCEPTION RELATING TO IMPORTATION OF 15 GOODS. 16 (a) IN GENERAL.—The authorities and requirements 17 to impose sanctions authorized under this Act shall not 18 include the authority or requirement to impose sanctions 19 on the importation of goods. 20 (b) GOOD DEFINED.—In this section, the term 21 ‘‘good’’ means any article, natural or man-made sub- 22 stance, material, supply or manufactured product, includ- 23 ing inspection and test equipment, and excluding technical 24 data. 25 VerDate Sep 11 2014 02:20 Nov 08, 2023 Jkt 049200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H3774.PCS H3774 kjohnson on DSK7ZCZBW3PROD with $$_JOB 12 HR 3774 PCS SEC. 6. APPROPRIATE CONGRESSIONAL COMMITTEES DE- 1 FINED. 2 In this Act, the term ‘‘appropriate congressional com- 3 mittees’’ means— 4 (1) the Committee on Foreign Affairs, the 5 Committee on the Judiciary, and the Committee on 6 Financial Services of the House of Representatives; 7 and 8 (2) the Committee on Foreign Relations, the 9 Committee on the Judiciary, and the Committee on 10 Banking, Housing, and Urban Affairs of the Senate. 11 Passed the House of Representatives November 3, 2023. Attest: KEVIN F. MCCUMBER, Clerk. VerDate Sep 11 2014 02:20 Nov 08, 2023 Jkt 049200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H3774.PCS H3774 kjohnson on DSK7ZCZBW3PROD with $$_JOB VerDate Sep 11 2014 02:20 Nov 08, 2023 Jkt 049200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\H3774.PCS H3774 kjohnson on DSK7ZCZBW3PROD with $$_JOB Calendar No. 240 118TH CONGRE [Text truncated for display. Full text available on Congress.gov.]