[Federal Register Volume 71, Number 193 (Thursday, October 5, 2006)]
[Rules and Regulations]
[Pages 58742-58744]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-16409]
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DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Parts 594, 595, and 597
Global Terrorism Sanctions Regulations; Terrorism Sanctions
Regulations; Foreign Terrorist Organizations Sanctions Regulations
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Final rule; amendment.
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SUMMARY: The Office of Foreign Assets Control of the U.S. Department of
the Treasury (``OFAC'') is revising the Global Terrorism Sanctions
Regulations, the Terrorism Sanctions Regulations, and the Foreign
Terrorist Organizations Sanctions Regulations to authorize in-kind
donations of medical devices and
[[Page 58743]]
medical services by U.S. nongovernmental organizations to the
Palestinian Authority Ministry of Health.
DATES: Effective Date: July 6, 2006.
FOR FURTHER INFORMATION CONTACT: Assistant Director of Compliance,
Outreach & Implementation, tel.: 202/622-2490, Assistant Director of
Licensing, tel.: 202/622-2480, Assistant Director of Policy, tel.: 202/
622-4855, or Chief Counsel, tel.: 202/622-2410, Office of Foreign
Assets Control, Department of the Treasury, Washington, DC 20220 (not
toll free numbers).
SUPPLEMENTARY INFORMATION:
Electronic and Facsimile Availability
This document and additional information concerning the Office of
Foreign Assets Control (``OFAC'') are available from OFAC's Web site
(http://www.treas.gov/ofac) or via facsimile through a 24-hour fax-on-
demand service, tel.: (202) 622-0077.
Background
The Office of Foreign Assets Control (``OFAC'') administers three
sanctions programs with respect to terrorists and terrorist
organizations. The Terrorism Sanctions Regulations, 31 CFR part 595
(``TSR''), implement Executive Order 12947 of January 23, 1995, in
which the President declared a national emergency with respect to
``grave acts of violence committed by foreign terrorists that disrupt
the Middle East peace process * * *'' The Global Terrorism Sanctions
Regulations, 31 CFR part 594 (``GTSR''), implement Executive Order
13224 of September 23, 2001, in which the President declared an
emergency more generally with respect to ``grave acts of terrorism and
threats of terrorism committed by foreign terrorists * * *'' The
Foreign Terrorist Organizations Sanctions Regulations, 31 CFR part 597
(``FTOSR''), implement provisions of the Antiterrorism and Effective
Death Penalty Act of 1996.
HAMAS is a target of each of these sanctions programs, resulting in
the blocking of any property and interests in property of HAMAS that
are in the United States or hereafter come within the United States, or
that are in or hereafter come within the possession or control of a
United States person. These restrictions prohibit U.S. persons from
dealing in property or interests in property of HAMAS. After the
January 26, 2006 parliamentary elections in the West Bank and Gaza,
HAMAS members formed the majority party within the Palestinian
Legislative Council. In addition, HAMAS currently holds positions of
authority within the government, including the position of Prime
Minister. OFAC determined that, as a result of these elections, HAMAS
has a property interest in the transactions of the Palestinian
Authority. Accordingly, pursuant to the TSR, the GTSR, and the FTOSR,
U.S. persons are prohibited from engaging in transactions with the
Palestinian Authority unless authorized.
Consistent with current foreign policy, OFAC issued six general
licenses on April 12, 2006, authorizing U.S. persons to engage in
certain transactions in which the Palestinian Authority may have an
interest. One of those general licenses authorized in-kind donations of
medicine by U.S. nongovernmental organizations to the Palestinian
Authority Ministry of Health, provided that such donations were
strictly for distribution in the West Bank or Gaza and not intended for
resale. Based on foreign policy considerations, OFAC is expanding this
license, effective July 6, 2006, to allow U.S. nongovernmental
organizations to make in-kind donations to the Palestinian Authority
Ministry of Health of medical services and medical devices, which
include medical supplies, in addition to donations of medicine,
provided that such donations are strictly for distribution in the West
Bank or Gaza and not intended for resale.
Public Participation
Because the amendment of 31 CFR parts 594, 595, and 597 involves a
foreign affairs function, the provisions of Executive Order 12866 and
the Administrative Procedure Act (5 U.S.C. 553) requiring notice of
proposed rulemaking, opportunity for public participation, and delay in
effective date, are inapplicable. Because no notice of proposed
rulemaking is required for this rule, the Regulatory Flexibility Act (5
U.S.C. 601-612) does not apply.
Paperwork Reduction Act
The collections of information related to 31 CFR parts 594, 595,
and 597 are contained in 31 CFR part 501 (the ``Reporting, Procedures
and Penalties Regulations''). Pursuant to the Paperwork Reduction Act
of 1995 (44 U.S.C. 3507), those collections of information have been
approved by the Office of Management and Budget under control number
1505-0164. An agency may not conduct or sponsor, and a person is not
required to respond to, a collection of information unless the
collection of information displays a valid control number.
List of Subjects
31 CFR Part 594
Administrative practice and procedure, Banks, Banking, Penalties,
Reporting and recordkeeping requirements, Terrorism.
31 CFR Part 595
Administrative practice and procedure, Banks, Banking, Currency,
Foreign investments in United States, Penalties, Reporting and
recordkeeping requirements, Securities, Terrorism.
31 CFR Part 597
Administrative practice and procedure, Banks, Banking, Currency,
Foreign investments in United States, Penalties, Reporting and
recordkeeping requirements, Securities, Terrorism.
0
For the reasons set forth in the preamble, the Office of Foreign Assets
Control amends 31 CFR parts 594, 595, and 597 as follows:
PART 594--GLOBAL TERRORISM SANCTIONS REGULATIONS
0
1. The authority citation for part 594 continues to read as follows:
Authority: 3 U.S.C. 301; 22 U.S.C. 287c; 31 U.S.C. 321(b); 50
U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28
U.S.C. 2461 note); E.O. 13224, 66 FR 49079, September 25, 2001; E.O.
13268, 67 FR 44751, July 3, 2002; 3 CFR, 2002 Comp., p. 240; E.O.
13284, 64 FR 4075, January 28, 2003.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
2. Revise Sec. 594.515 to read as follows:
Sec. 594.515 In-kind donations of medicine, medical devices, and
medical services.
(a) Effective July 6, 2006, nongovernmental organizations that are
U.S. persons are authorized to provide in-kind donations of medicine,
medical devices, and medical services to the Palestinian Authority
Ministry of Health, provided that such donations are strictly for
distribution in the West Bank or Gaza and not intended for resale, and
provided further that no payment pursuant to this license may involve a
debit to an account of the Palestinian Authority on the books of a U.S.
financial institution or to any account blocked pursuant to this part.
(b) For the purposes of this section only, the term medical device
has the meaning given the term ``device'' in section 201 of the Federal
Food, Drug, and Cosmetic Act (21 U.S.C. 321), including medical
supplies, but does not include any item listed on the Commerce Control
List in the Export
[[Page 58744]]
Administration Regulations, 15 CFR part 774, supplement no. 1.
Note to paragraph (b): Nongovernmental organizations that are
interested in providing items listed on the Commerce Control List to
the Palestinian Authority Ministry of Health must apply for a
specific license from the Office of Foreign Assets Control.
PART 595--TERRORISM SANCTIONS REGULATIONS
0
1. The authority citation for part 595 continues to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651,
1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note);
E.O. 12947, 60 FR 5079; 3 CFR, 1995 Comp., p. 319.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
2. Revise Sec. 595.513 to read as follows:
Sec. 595.513 In-kind donations of medicine, medical devices, and
medical services.
(a) Effective July 6, 2006, nongovernmental organizations that are
U.S. persons are authorized to provide in-kind donations of medicine,
medical devices, and medical services to the Palestinian Authority
Ministry of Health, provided that such donations are strictly for
distribution in the West Bank or Gaza and not intended for resale, and
provided further that no payment pursuant to this license may involve a
debit to an account of the Palestinian Authority on the books of a U.S.
financial institution or to any account blocked pursuant to this part.
(b) For the purposes of this section only, the term medical device
has the meaning given the term ``device'' in section 201 of the Federal
Food, Drug, and Cosmetic Act (21 U.S.C. 321), including medical
supplies, but does not include any item listed on the Commerce Control
List in the Export Administration Regulations, 15 CFR part 774,
supplement no. 1.
Note to paragraph (b): Nongovernmental organizations that are
interested in providing items listed on the Commerce Control List to
the Palestinian Authority Ministry of Health must apply for a
specific license from the Office of Foreign Assets Control.
PART 597--FOREIGN TERRORIST ORGANIZATIONS SANCTIONS REGULATIONS
0
1. The authority citation for part 597 continues to read as follows:
Authority: 31 U.S.C. 321(b); Pub. L. 101-410, 104 Stat. 890 (28
U.S.C. 2461 note); Pub. L. 104-132, 110 Stat. 1214, 1248-53 (8
U.S.C. 1189, 18 U.S.C. 2339B).
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
2. Revise Sec. 597.511 to read as follows:
Sec. 597.511 In-kind donations of medicine, medical devices, and
medical services.
(a) Effective July 6, 2006, U.S. financial institutions are
authorized to conduct all transactions ordinarily incident to the
provision by nongovernmental organizations that are U.S. persons of in-
kind donations of medicine, medical devices, and medical services to
the Palestinian Authority Ministry of Health, provided that such
donations are strictly for distribution in the West Bank or Gaza and
not intended for resale, and provided further that no payment pursuant
to this license may involve a debit to an account of the Palestinian
Authority on the books of a U.S. financial institution or to any
account blocked pursuant to this part.
(b) For the purposes of this section only, the term medical device
has the meaning given the term ``device'' in section 201 of the Federal
Food, Drug, and Cosmetic Act (21 U.S.C. 321), including medical
supplies, but does not include any item listed on the Commerce Control
List in the Export Administration Regulations, 15 CFR part 774,
supplement no. 1.
(c) U.S. financial institutions are authorized to conduct all
transactions ordinarily incident to the provision by nongovernmental
organizations that are U.S. persons of in-kind donations of medical
devices listed on the Commerce Control List to the Palestinian
Authority Ministry of Health, provided that
(1) Such donation is licensed by OFAC; and
(2) Such donation is authorized under or pursuant to the Export
Administration Regulations.
(d) The retention and reporting provisions of Sec. 597.201 shall
not apply with respect to transactions authorized by paragraphs (a) and
(c) of this section.
Dated: September 6, 2006.
Adam J. Szubin,
Acting Director, Office of Foreign Assets Control.
[FR Doc. E6-16409 Filed 10-4-06; 8:45 am]
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