International Trade Law News

Published by Jacobson Burton Kelley PLLC

In a flurry of last minute activity before adjourning for the fall election recess until November 13th, the U.S. Congress passed on early Saturday morning two trade-related bills, the Iran Freedom and Support Act and the Security and Accountability for Every (SAFE) Port Act.

Iran Freedom Support Act - After a great deal of behind the scenes activity, the Senate passed by unanimous consent H.R. 6198, the Iran Freedom Support Act (IFSA), which the House of Representatives had passed a day earlier. H.R. 6198, which extends the expiring sanctions on Iran until December 31, 2011, removed the most controversial provisions in the previous version of the Iran Freedom Support Act (H.R. 282) that passed the House in April, including the language that would extend the sanctions on Iran to independent foreign subsidiaries of U.S. companies.

H.R. 6198, the Iran Freedom Support Act, does the following:

• Codifies most existing U.S. sanctions on Iran;
• Imposes mandatory sanctions against entities that provide goods or services that contribute to Iran's ability to acquire nuclear, chemical, or biological weapons;
• Contains more detailed waiver language, by requiring the President to notify Congress 15 days before terminating any sanctions on Iran;
• Declares Congress' intent to avoid implementing agreements with countries that cooperate with Iran;
• Provides new authority for the President to prevent money-laundering that can be used to provide Iran and other dangerous countries with weapons of mass destruction;
• Authorizes financial and political support for foreign and domestic organizations and individuals seeking to promote democratic reforms in Iran.

I applaud Congress for demonstrating its bipartisan commitment to confronting the Iranian regime's repressive and destabilizing activities by passing the Iran Freedom Support Act. This legislation will codify U.S. sanctions on Iran while providing my Administration with flexibility to tailor those sanctions in appropriate circumstances and impose sanctions upon entities that aid the Iranian regime's development of nuclear weapons.

• Sets minimum standards for C-TPAT participation and formally divides program membership into tiered categories;
• Increases staffing and funds available to the C-TPAT program;
• Authorizes $3.4 billion over five years for port safety and security measures;
• Authorizes $400 million per year for port security grants;
• Authorize and codify the Domestic Nuclear Detection Office (DNDO);
• Require the Department of Homeland Security (DHS) to deploy nuclear and radiological detection systems at the largest 22 port U.S. ports to cover 98% of all incoming cargo;
• Establish three pilot programs to evaluate the feasibility of conducting 100% scanning of cargo containers for nuclear and radiological material at foreign seaports;
• Require background checks and credentials for workers at the nation's 361 ports;
• DHS is required to create protocols for resuming operations after an attack or security incident.