[Code of Federal Regulations]
[Title 15, Volume 2]
[Revised as of January 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 15CFR744.14]

[Page 344-345]
 
                  TITLE 15--COMMERCE AND FOREIGN TRADE
 
  CHAPTER VII--BUREAU OF INDUSTRY AND SECURITY, DEPARTMENT OF COMMERCE
 
PART 744_CONTROL POLICY: END-USER AND END-USE BASED--Table of Contents
 
Sec.  744.14  Restrictions on exports and reexports to designated 
Foreign Terrorist Organizations (FTOs).

    Consistent with the objectives of section 219 of the Immigration and 
Nationality Act, as amended (INA) (8 U.S.C. 1189), and section 303 of 
the Antiterrorism and Effective Death Penalty Act 1996, as amended 
(Anti-Terrorism Act) (18 U.S.C. 2339B) (Public Law 104-132. 110 Stat. 
1214-1319), BIS maintains restrictions on exports and reexports to 
organizations designated as Foreign Terrorist Organizations (FTOs) 
pursuant to section 219 of the INA. The Department of the Treasury, 
Office of Foreign Assets Control, maintains 31 CFR part 597, the Foreign 
Terrorist Organizations Sanctions Regulations, requiring U.S. financial 
institutions to block all financial transactions involving assets of 
designated FTOs within the possession or control of such U.S. financial 
institutions. Section 303 of the Anti-Terrorism Act prohibits persons 
within the United States or subject to U.S. jurisdiction from knowingly 
providing material support or resources to a designated FTO and makes 
violations punishable by criminal penalties under title 18, United 
States Code. These designated FTOs are listed in Appendix A to 31 CFR 
Chapter V and identified by the bracketed initials [FTO]. A designation 
of a foreign organization determined to meet the criteria of section 219 
of the INA takes effect upon publication in the Federal Register by the 
Secretary of State, or the Secretary's designee.
    (a) License requirement(s). (1) A license requirement applies to the 
export or reexport to an FTO of any item subject to the EAR.
    (2) U.S. persons must seek authorization from BIS for the export or 
reexport to an FTO of any item subject to the EAR.
    (3) Non-U.S. persons must seek authorization from BIS for the export 
from abroad or reexport to an FTO of any item subject to the EAR.
    (4) Any export or reexport to an FTO by any person of any item 
subject to the EAR and not authorized by BIS is a violation of the EAR.
    (5) These licensing requirements supplement any other requirements 
set forth elsewhere in the EAR.
    (b) Exceptions. No License Exceptions or other BIS authorization for 
items described by paragraph (a) of this section are available for 
exports or reexports to FTOs.
    (c) Licensing policy. Applications for exports and reexports to FTOs 
of all items identified by paragraph (a) of

[[Page 345]]

this section will generally be denied, to the extent they constitute 
material support or resources, as defined in 18 U.S.C. 2339A(b).
    (d) Contract sanctity. Contract sanctity provisions are not 
available for license applications reviewed under this section.
    (e) FTOs also designated as SDTs or SDGTs. In cases in which an FTO 
is also an SDT, as described in Sec.  744.13, or an SDGT, as described 
in Sec.  744.12, the license requirements and licensing policy set forth 
in Sec.  744.13 or Sec.  744.12 will apply.
    Note to Sec.  744.14: This section does not implement, construe, or 
limit the scope of any criminal statute, including (but not limited to) 
18 U.S.C. 2339B(a)(1) and 2339A, and does not excuse any person from 
complying with any criminal statute, including (but not limited to) 18 
U.S.C. 2339B(a)(1) and 18 U.S.C. 2339A.

[68 FR 34195, June 6, 2003]