BIS Issues Guidance on Illicit Diversion of Items to Iran

WASHINGTON, D.C. - The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) issued guidance today on actions that exporters can take to prevent the illicit diversion of items to support Iran’s nuclear weapons or ballistic missile programs. (Link to Iran Guidance Page)  The guidance is part of an inter-agency effort to counter Iran’s pursuit of technology that could enable it to develop weapons of mass destruction (WMD) and the means to deliver them.  It follows enforcement and administrative actions taken last week by BIS and other agencies against 75 entities involved in a global procurement network which sought to illegally acquire U.S.-origin dual-use and military components for the Iranian Government.

"The United States maintains an embargo against Iran, and companies must remain vigilant that exports are not diverted to Iran through other countries," said Commerce Under Secretary Mario Mancuso. "As evidenced by the enforcement actions taken last week, the Iranian Government is using front companies to procure items useful to its WMD programs. U.S. companies should pay particular attention to transactions involving nuclear or missile technology to identify any red flags involving potential diversion."

All exports to Iran are subject to the Export Administration Regulations and the Department of the Treasury's Iranian Transactions Regulations. Exporters should seek authorization from Treasury's Office of Foreign Assets Control (OFAC) prior to exporting to Iran. If OFAC authorizes such an export or reexport, no separate authorization from BIS is necessary.

Exporters can screen parties to a transaction using the "Lists to Check" on the BIS website www.bis.doc.gov/complianceandenforcement/liststocheck.htm.

BACKGROUND

BIS controls exports and re-exports of dual-use commodities, technology and software for reasons of national security, missile technology, nuclear non-proliferation, chemical and biological non-proliferation, crime control, regional stability and anti-terrorism. Criminal and administrative sanctions can be imposed for violations of the Export Administration Regulations. For more information, please visit www.bis.doc.gov.

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