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1. Which U.S. Government agency should I consult with if I want to export or reexport dual-use items to Iraq, or transfer such items within Iraq?
2. Does the Department of the Treasury’s Office of Foreign Assets Control (OFAC) have jurisdiction over Iraq anymore?
3. Are licenses previously issued to me by OFAC for transactions involving Iraq still valid?
4. Is a license required to transfer an OFAC-licensed item within Iraq?
5. May I reexport an OFAC-licensed item from Iraq to another country or return the item to the United States without a license?
6. What records am I required to keep related to previously-granted OFAC licenses for Iraq?
7. What happened to the license application I submitted to OFAC before jurisdiction reverted to BIS?
8. If I get an authorized license from BIS, do I still need a license from OFAC?
9. Which items require a license for export or reexport to Iraq?
10. Are there items that may generally be sent without a license to Iraq?
11. Has a new license requirement been imposed on transfers of items within Iraq?
12. Are there any end-use or end-user license requirements for Iraq?
13. How have the de minimis rules changed for Iraq?
14. Under what policy will license applications be reviewed?
15. Are there any license requirements specific to transfers of items within Iraq?
16. How do I apply for a transfer license?
17. How is BIS going to review license applications requesting authorization to transfer items within Iraq?
18. What License Exceptions are available for Iraq?
19. Are License Exceptions available for transfers within Iraq?
20. Can I ship to the Multilateral Force in Iraq under License Exception GOV?
21. Is License Exception CTP available for Iraq?
22. Is Iraq still under embargo?
23. What is the scope of the UNSC arms embargo?
24. How is BIS implementing the arms embargo?
25. What is a “military end-user” and what is “military end-use”?
26. What is a SIRL and how can I use it?
27. When should I consider using a SIRL?
28. What is the advantage of using a SIRL?
29. How do I apply for a SIRL?
30. How can I amend my SIRL?
31. Can a Special Comprehensive License be used instead of a SIRL to ship items?
32. Are there people in Iraq I can't do business with?
33. Will BIS develop a list of pre-approved entities to whom we may ship without further notification?
34. Are there end uses that are prohibited?
35. Can I make changes to my application if the purchaser (or end-user) changes after I've submitted my application or do I need to submit a new application, in essence starting the process all over again?
36. What do I do if the purchaser in Iraq asks me to ship to a recipient or a location that is different from the recipients or locations I submitted in my application?
37. What is SNAP-R?
38. Where can I get application forms?
39. How will I know if BIS has registered my application?
40. What is STELA?
1. Which U.S. Government agency should I consult with if I want to export or reexport dual-use items to Iraq, or transfer such items within Iraq?
As of July 30, 2004, the Department of Commerce’s Bureau of Industry and Security (BIS) has jurisdiction over the export and reexport to Iraq, and transfer within Iraq, of dual-use items subject to the Export Administration Regulations (EAR). See parts 746 and 747 of the EAR for specific guidance on Iraq. The license requirements and licensing policies set forth in parts 742 and 744 of the EAR also apply to Iraq.
2. Does the Department of the Treasury’s Office of Foreign Assets Control (OFAC) have jurisdiction over Iraq anymore?
As of July 30, 2004, BIS has jurisdiction over the export and reexport to Iraq, and transfer within Iraq, of dual-use items subject to the Export Administration Regulations (EAR). OFAC continues to have jurisdiction over certain transactions, including those involving blocked assets and other financial matters. OFAC also has primary jurisdiction for transactions involving persons identified in Appendix A to 31 CFR Chapter V, the list of “Specially Designated Nationals.” You should consult with OFAC directly about these transactions.
3. Are the licenses previously issued to me by OFAC for transactions involving Iraq still valid?
Yes. BIS will recognize the validity of any specific license authorized by OFAC for an export or reexport to Iraq, or transfer within Iraq, until the expiration date specified by OFAC. OFAC licenses issued without specified expiration dates will be valid through July 30, 2005. No additional BIS license is required for transactions within the scope of a previously-issued OFAC license. Such licenses are valid for purposes of the EAR, although a new recordkeeping requirement in Section 746.3 of the EAR applies (See item 6, below).
4. Is a license required to transfer an OFAC-licensed item within Iraq?
Yes. If you wish to transfer within Iraq an item previously exported or reexported to Iraq under a specific OFAC license that does not specifically authorize the transfer, you must submit a letter to BIS’s Office of Exporter Services. Letters should include all relevant information regarding the name and address of the entity in possession of the item(s), the proposed end-use and end-user for the item(s) to be transferred, as well information about the item(s) (including a description, the ECCN(s), the quantity and the monetary value). You should include information on the original export or reexport authorization. Envelopes containing requests for transfer licenses should be marked “TRANSFER LICENSE” and sent to the following address: Office of Exporter Services, U.S. Department of Commerce, P.O. Box 273, Washington, DC 20044.
5. May I reexport an OFAC-licensed item from Iraq to another country or return the item to the United States without a license?
Items exported or reexported to Iraq under an OFAC license may be returned to the United States without a license. Reexports to third countries may require a BIS license, depending upon the classification of the item and the third-country destination. Refer to the Commerce Control List at Part 774 of the EAR to determine the classification of the item. Refer to the Commerce Country Chart in Part 738 of the EAR to determine if a license is required to the intended destination country. If a license is required, Part 742 of the EAR sets forth the applicable licensing policy, based on the specific reason for control.
6. What records am I required to keep related to previously-granted OFAC licenses for Iraq?
As set forth in Section 746.3, persons in receipt of a specific license granted by OFAC must maintain a record of those items exported or reexported to Iraq under the specific license and record when the items are:
This requirement applies only to items subject to a license requirement under the EAR for export to Iraq as of July 30, 2004.
7. What happened to the license application I submitted to OFAC before jurisdiction reverted to BIS?
If your application was pending at OFAC on July 30, 2004, OFAC will return it to you. You should submit an application to BIS, using Form BXA-748P.
8. If I get an authorized license from BIS, do I still need a license from OFAC?
No. And the reverse is also true: for issues over which OFAC retains jurisdiction, such as those involving blocked assets or Specially Designated Nationals, authorization from OFAC constitutes authorization under the EAR and no separate BIS authorization is required.
9. Which items require a license for export or reexport to Iraq?
Items controlled Commerce Country Chart (Supplement 1 to Part 738 of the EAR) for national security (NS), missile technology (MT), nuclear nonproliferation (NP), proliferation of chemical and biological weapons (CB), regional stability (RS), crime control (CC), significant items (SI), or high performance computers (XP) reasons are subject to a license requirement for export or reexport to Iraq. These license requirements are set forth in part 742 of the EAR and are reflected in the relevant columns of the Commerce Country Chart in Supplement No. 1 to part 738 of the EAR.
Certain categories of items that are controlled for reasons not included on the Country Chart (e.g., encryption (EI), short supply (SS), United Nations (UN), and chemical weapons (CW)) also require a license for export or reexport to Iraq. A separate license requirement for transfers within Iraq is applicable as well and is discussed below.
10. Are there items that may generally be sent without a license to Iraq?
Subject to certain limitations noted below, most items controlled for anti-terrorism reasons (AT) only and EAR99 items (items subject to the EAR but not listed on the Commerce Control List (CCL)) are generally not subject to a license requirement for export or reexport to Iraq. These items are also generally not subject to the transfer license requirement discussed below. However, EAR99 and AT items may be subject to a license requirement if destined to the end-users or end-uses set forth in part 744 and revised section 746.3 of the EAR.
Items controlled under eight Export Control Classification Numbers (ECCNs) for anti-terrorism (AT) reasons only on the CCL are subject to a licensing requirement. The eight ECCNs are:
11. Has a new license requirement been imposed on transfers of items within Iraq?
Yes. Pursuant to Section 746.3, items controlled for export or reexport to Iraq require a license for transfer within Iraq to new end users.
12. Are there any end-use or end-user license requirements for Iraq?
Yes. License requirements apply to the export, reexport and/or transfer of items subject to the EAR destined for a “military end-use” or a “military end-user,” or to a designated terrorist or terrorist organization. License requirements under the Enhanced Proliferation Control Initiative (EPCI) also apply.
Section 746.3 of the EAR imposes a license requirement for the export, reexport, or transfer of items subject to the EAR if, at the time of the export, reexport, or transfer, you know, have reason to know, or are informed by BIS that the item will be, or is intended to be, used in Iraq for a “military end-use” or by a “military end-user”. “Military end-use” and military end-user” are defined in Section 746.3 of the EAR. This license requirement does not apply to exports, reexports, or transfers of items for the official use by personnel or agencies of the U.S. Government or exports, reexports, or transfers to the Interim Government of Iraq or the Multinational Force in Iraq.
In addition, transfers within Iraq to designated terrorists or terrorist organizations, as set forth in sections 744.12, 744.13, or 744.14 of the EAR, and transfers to any persons referenced in section 744.18 of the EAR, require a license.
These new license requirements are in addition to the existing license requirements established under to the Enhanced Proliferation Control Initiative (EPCI), in part 744 of the EAR. The EPCI requirements also apply to the transfer within Iraq of any item subject to the EAR, if, at the time of the transfer, you know, have reason to know, or are informed by BIS that the item will be used in the design, development, production or use of weapons of mass destruction or their means of delivery.
13. How have the de minimis rules changed for Iraq?
BIS has raised the threshold for calculating the de minimis level of foreign goods destined to Iraq to 25% of U.S. content. De minimis for Iraq was previously set at 10%.
14. Under what policy will license applications be reviewed?
General Licensing Policy
License applications for the export or reexport to Iraq or transfer within Iraq will be reviewed on a case-by-case basis under the licensing policies set forth in parts 742, 744 or elsewhere in the EAR. Certain additional Iraq specific parameters, as noted below, will also be considered.
Reason for Control: Chemical and Biological Weapons(CB): Applications for exports, reexports and transfers of items contributing to the building of Iraqi civil infrastructure will be reviewed on a case-by-case basis. There will be a general policy of denial for all other applications for CB-controlled items.
Reason for Control: Nuclear Nonproliferation (NP): Applications for exports, reexports and transfers of items contributing to the building of Iraqi civil infrastructure will be reviewed on a case-by-case basis There will be a general policy of denial of applications for subsystems or components or any nuclear weapons research, development, support, or manufacturing facilities that do not contribute to the building of Iraqi civil infrastructure.
Reason for Control: National Security (NS): Applications for exports, reexports and transfers of items contributing to the building of Iraqi civil infrastructure will be reviewed on a case-by-case basis There will be a general policy of denial of applications for items for the production, research, design, development, support, maintenance or manufacture of Iraqi weapons of mass destruction or ballistic missiles (for Iraq, defined as those with a range of 150 km or greater) or arms and related matériel.
Reason for Control: Missile Technology (MT): Applications for exports, reexports and transfers of items contributing to the building of Iraqi civil infrastructure will be reviewed on a case-by-case basis. There will be a general policy of denial of applications for major parts, repair and production facilities related to ballistic missiles with a range greater than 150 kilometers.
Reason for Control: Anti-terrorism (AT): Items controlled to Iraq for anti-terrorism (AT) reasons will be reviewed on a case-by-case basis to determine if they will contribute to the building of Iraqi civil infrastructure. Applications determined not to contribute to the building of Iraqi civil infrastructure will be subject to a general policy of denial.
Specific licensing policy for items destined for Iraq civil or military nuclear activity:
License applications for the export or reexport to Iraq or transfer within Iraq of items for Iraqi civil nuclear or military nuclear activity, except for isotopes for medical, industrial or agricultural purposes, will be subject to a policy of denial.
Specific licensing policy for items subject to the United Nations Arms Embargo
License applications for the export or reexport to Iraq or transfer within Iraq of the following items will be subject to a general policy of denial if the items will make a material contribution to the production, research, design, development, support, maintenance or manufacture of Iraqi weapons of mass destruction, ballistic missiles or arms and related matériel:
Similarly, items subject to the “military end-use” or the “military end-user”license requirement noted above will be subject to a general policy of denial.
15. Are there any license requirements specific to transfers of items within Iraq?
Yes. As noted above, a license is required to transfer, within Iraq, items controlled for export or reexport to Iraq. In addition, transfers of items subject to the EAR within Iraq to designated terrorists or terrorist organizations, as set forth in sections 744.12, 744.13, or 744.14 of the EAR, and transfers to any persons referenced in section 744.18 of the EAR, require a license. Finally, the EPCI requirements also apply to the transfer within Iraq of any item subject to the EAR, if, at the time of the transfer, you know, have reason to know, or are informed by BIS that the item will be used in the design, development, production or use of weapons of mass destruction or their means of delivery.
16. What do I submit to request authorization to transfer an item within Iraq?
To request an in-country transfer, you must specify "in-country transfer" in Block 9 (Special Purpose) and mark "Reexport" in Block 5 (Type of Application) of the BIS-748P "Multipurpose Application" form. The application also must specify the same foreign country for both the original ultimate consignee and the new ultimate consignee.
17. How is BIS going to review license applications requesting authorization to transfer items within Iraq?
Licensing policy for the transfer of dual-use items to Iraq is found in section 746.3 of the EAR. It is also listed on our website (link). In general, BIS will review license applications for transfers on a case-by-case basis consistent with the policies governing exports and reexports to Iraq.
18. What License Exceptions are available for Iraq?
As a result of its removal from Country Group E:1, and placement in Country Group D (1-4), the following License Exceptions may be available, in whole or in part, for exports or reexports to Iraq: CIV, CTP, TMP, RPL, GOV, GFT, TSU, BAG, AVS, ENC and KMI. Note that a specific transaction is eligible for a License Exception only if it satisfies all of the terms and conditions of the relevant License Exception and is not excluded by any of the restrictions that apply to all license exceptions in part 740 of the EAR.
19. Are License Exceptions available for transfers within Iraq?
No, they are not. License exceptions only apply to exports and reexports .
20. Can I ship to the Multilateral Force in Iraq under License Exception GOV?
Shipments to members of the Multilateral Force in Iraq under License Exception GOV are only authorized if the shipment would be otherwise eligible under GOV. See Section 740.12 of the EAR.
21. Is License Exception CTP available for Iraq?
Yes. Iraq has been added to Computer Tier 3, for exports or reexports of high performance computers under License Exception CTP. Countries in Tier 3 are eligible to receive computers up to and including 190,000 MTOPS (millions of theoretical operations per second) under License Exception CTP. The export or reexport to Iraq of high performance computers exceeding 190,000 MTOPS continues to require a license. Use of License Exception CTP is not available for transfers within Iraq.
22. Is Iraq still under embargo?
Yes, a United Nations Security Council (UNSC) arms embargo remains in effect. The embargo retains restrictions on the sale or supply to Iraq of arms and related matériel and their means of production. It also restricts Iraq’s nuclear, chemical, biological, and missile-related activities. BIS implements the arms embargo as described in Section 746.3 of the EAR.
23. What is the scope of the UNSC arms embargo?
UNSC Resolution 1483, of May 22, 2003, lifted the comprehensive trade sanctions on Iraq while retaining restrictions on the sale or supply to Iraq of arms and related matériel and their means of production. UNSC Resolution 1483 also reiterated certain provisions of related UNSC Resolutions 707 of August 15, 1991, and 687 of April 3, 1991. In particular, those provisions require that Iraq eliminate its nuclear weapons program and restrict its nuclear activities to the use of isotopes for medical, industrial or agricultural purposes. The provisions also mandate the elimination of Iraq’s chemical and biological weapons programs and its ballistic missile program.
Note also that on June 8, 2004, the UNSC adopted Resolution 1546. In this resolution, the UNSC decided that prohibitions related to the sale or supply to Iraq of arms and related matériel under previous resolutions shall not apply to such items required by the Interim Government of Iraq or the Multinational Force in Iraq. However, the provisions in UNSC Resolutions 687 and 707 noted above are not affected by UNSC Resolution 1546.
24. How is BIS implementing the arms embargo?
As described above, Section 746.3 of the EAR imposes a license requirement for all items controlled on the Commerce Control List for UN reasons. Furthermore, any item that requires a license for export or reexport to Iraq, or transfer within Iraq, that is destined for Iraqi civil nuclear or military nuclear activity (except for use of isotopes for medical, industrial or agricultural purposes) are subject to a policy of denial. Additionally, machine tools controlled for national security (NS) or nuclear non-proliferation (NP) reasons, as well as any items controlled for crime control (CC) or United Nations (UN) reasons or ECCNs that end in the number “018", that would make a material contribution to the production, research, design, development, support, maintenance or manufacture of Iraqi weapons of mass destruction, ballistic missiles or arms and related matériel are subject to a general policy of denial.
In addition, a license is required for the export, reexport or transfer of items subject to the EAR if you know, have reason to know, or are informed by BIS that the item will be, or is intended to be, used in Iraq for a “military end-use” or a “military end-user”, as defined in Section 746.3 of the EAR. This license requirement does not apply to items for official use by personnel and agencies of the U.S. Government. It also does not apply to the Interim Government of Iraq or the Multinational Force in Iraq. License applications for transactions destined for a “military end-use” or a “military end-user” are subject to a policy of denial.
25. What is a “military end-user” and what is “military end-use”?
The terms “military end-user” and “military end-use,” as they apply to Iraq, are defined in Section 746.3 of the EAR. A military end-user is any person or entity whose actions or functions are intended to support “military end-uses” and who is not recognized as a legitimate military organization by the U.S. Government. “Military end-use” is the incorporation of an item into a military item described on the U.S. Munitions List (USML)(22 CFR part 121, International Traffic in Arms Regulations), or the Wassenaar Arrangement Munitions List
(WAML) (as set out on the Wassenaar Arrangement website at http://www.wassenaar.org); or use, development, or deployment of military items described on the USML or the WAML.
26. What is a SIRL and how can I use it?
BIS’s rule defines the “Special Iraq Reconstruction License” (SIRL) in part 747 of the EAR. SIRLs authorize exports and reexports to Iraq, and transfers within Iraq, of items in furtherance of civil reconstruction projects that are funded by the United States Government or by the United Nations, the World Bank, and the International Monetary Fund, or their affiliated entities (i.e., International Bank for Reconstruction and Development, International Finance Corporation, and United Nations Development Programme). SIRLs are also available for projects funded by other entities that the U.S. Government may designate. Any item subject to the EAR except items controlled for missile technology (MT), nuclear nonproliferation (NP), or chemical and biological weapons (CB) reasons on the CCL, is eligible for export, reexport or transfer under a SIRL.
27. When should I consider using a SIRL?
You should consider submitting an application for a SIRL if you are requesting authorization to export, reexport or transfer items that will be used in the reconstruction of Iraq in projects funded by specified entities including the United States Government, the United Nations, and the World Bank.
28. What is the advantage of using a SIRL?
SIRL’s are designed to accommodate the scope of items needed for the large reconstruction projects ongoing in Iraq. We expect that processing SIRL “bulk licenses” will be facilitated through your submission of documentation.
29. How do I apply for a SIRL?
Apply for a SIRL by submitting a completed BIS Multipurpose Application form (BIS-748P), Item Appendix (BIS-748P-A), and End-User Appendix (BIS-748P-B), plus narrative statements, as described in section 747.4 of the EAR.
You must submit a written request for a change to the Office of Exporter Services (link). BIS will respond to these requests in written form. Changes to a SIRL require BIS prior approval if they involve:
(i) consignee name or address;
(ii) addition of new consignee;
(iii) addition of new item;
(iv) changes to end user information or additional end users added; and/or
(v) license holder ownership or control.
Changes involving the following must be reported to BIS within 30 days of their occurrence but do not require prior BIS approval:
(i) license holder address, contact information, or license value; or
(ii) removing consignee(s), items or end users from the SIRL.
31. Can a Special Comprehensive License be used instead of a SIRL to ship items?
No, Special Comprehensive Licenses (SCLs) are not available for use to destinations in Iraq.
32. Are there people in Iraq I can't do business with?
Yes. In addition to existing requirements in the EAR related to transactions involving designated terrorist persons or groups (See Sections 744.12, 744.13, and 744.14 of the EAR), new Section 744.18 of the EAR imposes controls on the former Iraqi leaders and their associates designated in or pursuant to Executive Order 13315 of August 28, 2003 (“Blocking Property of the Former Iraqi Regime, its Senior Officials and Their Family Members, and Taking Certain Other Options”). Note that, consistent with Executive Order 13315, the Department of the Treasury maintains license requirements on certain transactions with persons designated in or pursuant to Executive Order 13315.
OFAC includes the names of persons designated in or pursuant to Executive Order 13315 in Appendix A to 31 CFR Chapter V, which lists persons subject to various sanctions programs administered by OFAC. All persons designated in or pursuant to Executive Order 13315 are identified in Appendix A by the bracketed initials [IRAQ2].
To avoid duplication, U.S. persons are not required to seek separate BIS authorization for an export, reexport, or transfer to a person identified in section 744.18 of any item subject to both the EAR and the regulations maintained by OFAC. You should consult with OFAC concerning transactions subject to OFAC licensing requirements.
U.S. persons must seek authorization from BIS for the export, reexport, or transfer, to a person identified in section 744.18 of any item subject to the EAR but not subject to regulations maintained by OFAC (e.g., deemed exports). Non-U.S. persons must seek authorization from BIS for the export from abroad, reexport, or transfer, to a person identified in section 744.18 of any item subject to the EAR. Applications for licenses for the export, reexport, or transfer, to a person identified in section 744.18 of any item subject to the EAR will be subject to a general policy of denial.
33. Will BIS develop a list of pre-approved entities to whom we may ship without further notification?
BIS has not pre-approved any entities for shipment without notification except the U.S. Government, which is generally eligible under License Exception GOV. Pre-approval of additional entities is not contemplated at this time.
34. Are there end-uses that are prohibited?
Yes, any end-use involving terrorist activities within Iraq or Iraqi chemical, biological, missile or nuclear proliferation programs is prohibited. Additionally, the end-uses established pursuant to the end-use/end-user controls in part 744 of the EAR are prohibited.
35. Can I make changes to my application if the purchaser (or end-user) changes after I've submitted my application or do I need to submit a new application, in essence starting the process all over again?
If you submitted a SIRL, see §747.5(d)(3)(e) of the EAR. Otherwise, see §750.7(c) of the EAR for guidance on changes to licenses. If BIS is still processing your application, you should inform us of the change. Depending on what stage of review your application is in, the Licensing Officer may be able to document the change in the database. For information on how to get in touch with BIS, see here (link).
36. What do I do if the purchaser in Iraq asks me to ship to a recipient or a location that is different from the recipients or locations I submitted in my application?
If BIS is still processing your license application, please contact us with complete information relating to the change ( how do I contact BIS? - link).
If you submitted a standard application (e.g., not a SIRL) and BIS has already authorized your transaction, a change in location may not be a problem; see §750.7(c) of the EAR for information on non-material changes to licenses. A change in recipient constitutes a material change to your license and you will have to resubmit for new authorization.
Regardless, if you know or have reason to believe that the change in recipient or location is an attempt to evade the U.S. export controls implementing the UNSC arms embargo or otherwise violate U.S. law, please contact BIS.
If you submitted a SIRL, see §747.5(d)(3)(e) of the EAR for changes that require prior approval from BIS.
37. What is SNAP-R?
SNAP-R is the acronym for BIS's Simplified Network Application Process Redesign. This allows exporters to electronically submit export/reexport license applications, notifications, and commodity classification requests. See the online information about SNAP-R. Note that SNAP-R cannot be used to request authorization to transfer items within Iraq at this time.
38. Where can I get application forms?
You may request forms on line or by contacting the Office of Exporter Services at 202-482-4811. In addition, the Department of Commerce's Commercial Service district offices often have forms. Check your local listing for the locations of Department of Commerce offices.
39. How will I know if BIS has registered my application?
Exporters may call BIS's "System for Tracking Export License Applications" (STELA) at 202-482-2752 and enter the Application Control Number (it begins with "Z" followed by six digits) for the status of their notifications. You must wait until either STELA reports that there has been no objection or until you receive written confirmation that no reviewing agency has objected.
40. What is STELA?
STELA is the acronym for BIS's automated System for Tracking Export License Applications. It is an automated voice response system that you can access using a touch-tone phone.