[Federal Register Volume 75, Number 187 (Tuesday, September 28, 2010)]
[Rules and Regulations]
[Pages 59611-59613]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-24211]
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DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 560
Iranian Transactions Regulations
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Final rule.
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SUMMARY: The Department of the Treasury's Office of Foreign Assets
Control (``OFAC'') is amending the Iranian Transactions Regulations in
the Code of Federal Regulations to remove general licenses authorizing
the importation into the United States of, and dealings in, certain
foodstuffs and carpets of Iranian origin and related services, and to
implement the import and export prohibitions in section 103 of the
Comprehensive Iran Sanctions, Accountability, and Divestment Act of
2010.
DATES: Effective Date: September 29, 2010.
FOR FURTHER INFORMATION CONTACT: Assistant Director for Compliance,
Outreach & Implementation, tel.: 202/622-2490, Assistant Director for
Licensing, tel.: 202/622-2480, Assistant Director for Policy, tel.:
202/622-4855, Office of Foreign Assets Control, or Chief Counsel
(Foreign Assets Control), tel.: 202/622-2410, Office of the General
Counsel, Department of the Treasury (not toll free numbers).
SUPPLEMENTARY INFORMATION:
Electronic and Facsimile Availability
This document and additional information concerning OFAC are
available from OFAC's Web site (http://www.treas.gov/ofac). Certain
general information pertaining to OFAC's sanctions programs also is
available via facsimile through a 24-hour fax-on-demand service, tel.:
202/622-0077.
Background
On July 1, 2010, the President signed into law the Comprehensive
Iran Sanctions, Accountability, and
[[Page 59612]]
Divestment Act of 2010 (Pub. L. 111-195) (``CISADA''). Subsection
103(a) of CISADA provides that, in addition to any other sanction in
effect, the economic sanctions described in subsection 103(b) of CISADA
shall apply with respect to Iran beginning 90 days after the date of
CISADA's enactment. The economic sanctions described in subsections
103(b)(1) and (b)(2) include prohibitions on the importation of goods
or services of Iranian origin directly or indirectly into the United
States and on the exportation of U.S.-origin goods, services, or
technology from the United States or by a United States person,
wherever located, to Iran. OFAC will implement these prohibitions
through an amendment to the Iranian Transactions Regulations, 31 CFR
Part 560 (the ``ITR''), which already implement, pursuant to, inter
alia, the International Emergency Economic Powers Act (50 U.S.C. 1701-
1706) (``IEEPA''), prohibitions similar to those set forth in
subsections 103(b)(1) and (b)(2) of CISADA. Consequently, OFAC is
amending the ITR by adding CISADA to the ITR's authority citations.
Notwithstanding the ITR's prohibitions of imports and exports, OFAC
authorizes certain otherwise prohibited transactions through general
licenses set forth in the ITR and specific licenses issued pursuant to
the ITR. In addition, the ITR contain certain exemptions from its
prohibitions of imports and exports. Similarly, subsections 103(b)(1)
and (b)(2) of CISADA include a number of exceptions to CISADA's
prohibitions of imports and exports, respectively. The exceptions to
CISADA's prohibitions differ in some cases from the exemptions and
authorizations contained in or issued pursuant to the ITR.
To the extent that the ITR exemptions and licenses authorize import
and export transactions beyond CISADA's exceptions, subsection
103(d)(1) of CISADA provides the authority to resolve these
differences. That subsection authorizes the President to prescribe
regulations to carry out section 103 and specifically states that these
regulations may include regulatory exceptions to the sanctions
described in subsection 103(b). Therefore, except with respect to
sections 560.534 and 560.535 of the ITR, which are being removed (see
below), OFAC is relying on the authority of subsection 103(d)(1) of
CISADA to maintain in effect the general and specific licenses set
forth in or issued pursuant to the ITR, and to treat those licenses as
regulatory exceptions to the import and export prohibitions in
subsection 103(b) of CISADA. This extends to general and specific
licenses authorizing transactions that are beyond those specified in
the exceptions set forth in subsections 103(b)(1) and (b)(2) of CISADA
and that otherwise would be prohibited by CISADA.
Conversely, to the extent that the transactions described in
CISADA's exceptions are neither exempt from nor authorized in or
pursuant to the ITR, those transactions will remain prohibited pursuant
to the ITR and, inter alia, IEEPA. In an explanatory statement, the
Committee of Conference on CISADA stated that notwithstanding the
exceptions in CISADA, any requirement under IEEPA to seek a license for
the transactions described in those exceptions remains in effect.
CISADA states in subsection 103(a) that the sanctions imposed by
subsection 103(b) are ``in addition to any other sanction in effect.''
Accordingly, a specific license from OFAC is required to engage in
transactions described in CISADA's exceptions if such transactions are
neither exempt from nor authorized in or pursuant to the ITR.
Subsection 103(d)(2) of CISADA strengthens the current trade
embargo against Iran by providing that no exception to the import
prohibition in subsection 103(b)(1) of CISADA may be made for the
commercial importation of an Iranian-origin good described in section
560.534(a) of the ITR, i.e., foodstuffs intended for human consumption
that are classified under chapters 2-23 of the Harmonized Tariff
Schedule of the United States and carpets and other textile floor
coverings and carpets used as wall hangings that are classified under
chapter 57 or heading 9706.00.0060 of the Harmonized Tariff Schedule of
the United States. Accordingly, as of September 29, 2010 (i.e., the
date that is 90 days after the date of CISADA's enactment), sections
560.534 and 560.535 of the ITR will be revoked, and OFAC will no longer
authorize, by general or specific license, the commercial importation
into the United States of these foodstuffs and carpets of Iranian-
origin. Any such goods imported into the United States pursuant to
sections 560.534 and 560.535 of the ITR must be entered for consumption
prior to that date.
In addition, section 560.306 of the ITR defines the terms goods of
Iranian origin and Iranian-origin goods to include: (1) Goods grown,
produced, manufactured, extracted, or processed in Iran and (2) goods
which have entered into Iranian commerce. Based on this definition,
foodstuffs and carpets of third-country origin that are transshipped
through Iran become goods of Iranian-origin. Therefore, the revocation
of the general licenses in sections 560.534 and 560.535 of the ITR also
will affect the specified foodstuffs and carpets of third-country
origin that are transshipped through Iran for importation into the
United States.
Section 560.534 of the ITR authorized both the commercial and
noncommercial importation into the United States of certain foodstuffs
and carpets of Iranian origin. As a result of the revocation of
sections 560.534 and 560.535 of the ITR, the noncommercial importation
of certain foodstuffs and carpets of Iranian origin into the United
States and related services would also be prohibited by section 560.201
of the ITR, unless otherwise authorized or exempt. One such
authorization is the general license for the importation of Iranian-
origin household goods and personal effects set forth in section
560.524(b) of the ITR. That general license continues in effect. OFAC
notes that U.S. Customs and Border Protection (CBP) Form 3299,
``Declaration for Free Entry of Unaccompanied Articles,'' is used to
enter Iranian-origin household and personal effects into the United
States.
Public Participation
Because the Regulations involve 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 the Regulations 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 in 31 CFR Part 560
Administrative practice and procedure, Banks, Banking, Brokers,
Foreign trade, Investments, Loans, Securities, Iran.
[[Page 59613]]
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For the reasons set forth in the preamble, the Department of the
Treasury's Office of Foreign Assets Control amends 31 CFR part 560 as
follows:
PART 560--IRANIAN TRANSACTIONS REGULATIONS
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1. Revise the authority citation to part 560 to read as follows:
Authority: 3 U.S.C. 301; 18 U.S.C. 2339B, 2332d; 22 U.S.C.
2349aa-9; 22 U.S.C. 7201-7211; 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); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); Pub. L.
111-195, 124 Stat. 1312 (22 U.S.C. 8501-8551); E.O. 12613, 52 FR
41940, 3 CFR, 1987 Comp., p. 256; E.O. 12957, 60 FR 14615, 3 CFR,
1995 Comp., p. 332; E.O. 12959, 60 FR 24757, 3 CFR, 1995 Comp., p.
356; E.O. 13059, 62 FR 44531, 3 CFR, 1997 Comp., p. 217.
Subpart E--License, Authorizations, and Statements of Licensing
Policy
Sec. Sec. 560.534 and 560.535 [Removed and reserved]
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2. Remove and reserve Sec. Sec. 560.534 and 560.535.
Dated: September 22, 2010.
Adam J. Szubin,
Director, Office of Foreign Assets Control.
[FR Doc. 2010-24211 Filed 9-27-10; 8:45 am]
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