PART 560 -- IRANIAN TRANSACTIONS REGULATIONS ============================================ Subpart A -- Relation of This Part to Other Laws and Regulations Sec. 560.101 Relation of this part to other laws and regulations. Subpart B -- Prohibitions 560.201 Prohibited importation of goods and services from Iran. 560.202 [Reserved] 560.203 Evasions; attempts. 560.204 Prohibited exportation of goods, technology, and services to Iran. 560.205 Prohibited reexportation of goods and technology to Iran. 560.206 Prohibited transactions related to Iranian - origin goods or services. 560.207 Prohibited investment. 560.208 Prohibited approval or facilitation. 560.209 Prohibited transactions with respect to the development of Iranian petroleum resources. 560.210 Exempt transactions. Subpart C -- General Definitions 560.301 Effective date. 560.302 [Reserved] 560.303 Iran; Iranian. 560.304 Government of Iran. 560.305 Person; entity. 560.306 Iranian - origin goods and services. 560.307 United States. 560.308 Importation. 560.309 [Reserved] 560.310 License. 560.311 General license. 560.312 Specific license. 560.313 Entity owned or controlled by the Government of Iran. 560.314 United States person. 560.315 Information or informational materials. 560.516 New investment. 560.317 Credits or loans. 560.318 Technology. 560.319 United States depository institution. 560.320 Iranian accounts. Subpart D -- Interpretations 560.401 Reference to amended sections. 560.402 Effect of amendment. 560.403 - 560.405 [Reserved] 560.406 Transshipments prohibited. 560.407 Transactions related to Iranian - origin goods. 560.408 Importation into and release from a bonded warehouse or foreign trade zone. 560.409 [Reserved] 560.410 Exportation of services. 560.411 Offshore transactions in Iranian - origin goods and services. 560.412 Extensions of credits or loans to Iran. 560.413 Letter of credit payments by Iranian banks in the United States. 560.414 Exports to third countries; reexports. Subpart E -- Licenses, Authorizations and Statements of Licensing Policy 560.501 Effect of license or authorization. 560.502 Exclusion from licenses and authorizations. 560.503 - 560.504 [Reserved] 560.505 Certain services relating to participation in various events authorized. 560.506 Importation and exportation of certain gifts authorized. 560.507 Accompanied baggage authorized. 560.508 Telecommunications and mail transactions authorized. 560.509 Certain transactions related to patents, trademarks and copyrights authorized. 560.510 Transactions related to the resolution of disputes between the United States or United States nationals and the Government of Iran. 560.511 [Reserved] 560.512 Iranian Government missions in the United States. 560.513 Importation of Iranian - origin oil. 560.514 [Reserved] 560.515 30 - day delayed effective date for pre - May 7, 1995 trade contracts involving Iran. 560.516 Payment and United States dollar clearing transactions involving Iran. 560.517 Exportation of services: Iranian accounts at United States depository institutions. 560.518 Transactions in Iranian - origin and Iranian Government property. 560.519 Policy governing news organization offices. 560.520 Exportation of agricultural commodities. 560.521 Diplomatic pouches. 560.522 Allowable payments for overflights of Iranian airspace. 560.523 Importation of information and informational materials. 560.524 Household goods and personal effects. 560.525 Exportation of certain legal services. 560.526 Commodities trading and related transactions. 560.527 Rescheduling existing loans. 560.528 Aircraft safety. Subpart F -- Reports 560.601 Required records. 560.602 Reports to be furnished on demand. 560.603 Reports on oil transactions engaged in by foreign affiliates. Subpart G -- Penalties 560.701 Penalties. 560.702 Detention of shipments. 560.703 Prepenalty notice. 560.704 Presentation responding to prepenalty notice. 560.705 Penalty notice. 560.706 Referral for administrative collection measures or to United States Department of Justice. Subpart H -- Procedures 560.801 Licensing. 560.802 Decisions. 560.803 Amendment, modification, or revocation. 560.804 Rulemaking. 560.805 Delegation by the Secretary of the Treasury. 560.806 Customs procedures: Goods specified in 560.201. 560.807 Rules governing availability of information. Subpart I -- Paperwork Reduction Act 560.901 Paperwork Reduction Act notice. Authority: 50 U.S.C. 1701 - 1706; 50 U.S.C. 1601 - 1651; 22 U.S.C. 2349aa - 9; 3 U.S.C. 301; E.O. 12613, 52 FR 41940, 3 CFR, 1987 Comp., p. 256; E.O. 12957, 60 FR 14615, March 17, 1995; E.O. 12959, 60 FR 24757, May 9, 1995. Source: 60 FR 47063, Sept. 11, 1995, unless otherwise noted. Subpart A -- Relation of This Part to Other Laws and Regulations 560.101 Relation of this part to other laws and regulations. (a) This part is separate from, and independent of, the other parts of this chapter, including part 535, ``Iranian Assets Control Regulations.'' No license or authorization contained in or issued pursuant to those other parts authorizes any transaction prohibited by this part. No license or authorization contained in or issued pursuant to any other provision of law or regulations authorizes any transaction prohibited by this part. (b) No license or authorization contained in or issued pursuant to this part relieves the involved parties from complying with any other applicable laws or regulations. Subpart B -- Prohibitions 560.201 Prohibited importation of goods and services from Iran. Except as otherwise authorized, and notwithstanding any contract entered into or any license or permit granted prior to May 7, 1995, the importation into the United States, or the financing of such importation, of any goods or services of Iranian origin, other than Iranian - origin publications and materials imported for news publications or news broadcast dissemination, is prohibited. 560.202 [Reserved] 560.203 Evasions; attempts. Any transaction by any United States person or within the United States that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions contained in this part is hereby prohibited. 560.204 Prohibited exportation of goods, technology, and services to Iran. Except as otherwise authorized, and notwithstanding any contract entered into or any license or permit granted prior to May 7, 1995, the exportation from the United States to Iran or the Government of Iran, or the financing of such exportation, of any goods, technology, or services is prohibited. 560.205 Prohibited reexportation of goods and technology to Iran. Except as otherwise authorized, and notwithstanding any contract entered into or any license or permit granted prior to May 7, 1995, the reexportation to Iran or the Government of Iran of any goods or technology exported from the United States, the exportation of which to Iran was subject to export license application requirements under any United States regulations in effect immediately prior to May 6, 1995, is prohibited, unless the reexportation is of goods that have been substantially transformed outside the United States, or incorporated into another product outside the United States and constitute less than 10 percent by value of that product exported from a third country. 560.206 Prohibited transactions related to Iranian - origin goods or services. Except as otherwise authorized, and notwithstanding any contract entered into or any license or permit granted prior to May 7, 1995, any transaction, including purchase, sale, transportation, swap, financing, or brokering transactions, by a United States person relating to goods or services of Iranian origin or owned or controlled by the Government of Iran is prohibited. 560.207 Prohibited investment. Except as otherwise authorized, and notwithstanding any contract entered into or any license or permit granted prior to May 7, 1995, any new investment by a United States person in Iran or in property (including entities) owned or controlled by the Government of Iran is prohibited. 560.208 Prohibited approval or facilitation. Except as otherwise authorized, and notwithstanding any contract entered into or any license or permit granted prior to May 7, 1995, the approval or facilitation by a United States person of the entry into or performance by an entity owned or controlled by a United States person of a transaction or contract prohibited as to United States persons by 560.205, 560.206, and 560.207, or relating to the financing of activities prohibited as to United States persons by those sections, or of a guaranty of another person's performance of such transaction or contract, is prohibited. 560.209 Prohibited transactions with respect to the development of Iranian petroleum resources. Except as otherwise authorized, and notwithstanding any contract entered into or any license or permit granted prior to March 16, 1995, the following are prohibited: (a) The entry into or performance by a United States person, or the approval by a United States person of the entry into or performance by an entity owned or controlled by a United States person, of: (1) A contract that includes overall supervision and management responsibility for the development of petroleum resources located in Iran, or (2) A guaranty of another person's performance under such contract; or (b) The entry into or performance by a United States person, or the approval by a United States person of the entry into or performance by an entity owned or controlled by a United States person, of (1) A contract for the financing of the development of petroleum resources located in Iran, or (2) A guaranty of another person's performance under such a contract. 560.210 Exempt transactions. (a) Personal communications. The prohibitions of 560.204 and 560.206 do not apply to any postal, telegraphic, telephonic, or other personal communication, which does not involve the transfer of anything of value. (b) Humanitarian donations. The prohibitions of 560.204 and 560.206 do not apply to donations by United States persons of articles, such as food, clothing, and medicine, intended to be used to relieve human suffering. (c) Information and informational materials. (1) The prohibitions of 560.204 and 560.206 do not apply to the exportation from the United States to Iran of information and informational materials, as defined in 560.315, whether commercial or otherwise, regardless of format or medium of transmission, or any transaction of common carriers incident to such exportation. (2) Paragraph (c)(1) of this section does not authorize transactions related to information and informational materials not fully created and in existence at the date of the transaction, or to the substantive or artistic alteration or enhancement of information or informational materials, or the provision of marketing and business consulting services by a United States person. Such prohibited transactions include, without limitation, payment of advances for information or informational materials not yet created and completed, and provision of services to market, produce or co - produce, create or assist in the creation of information or informational materials. (3) Paragraph (c)(1) does not authorize transactions incident to the exportation of restricted technical data as defined in part 779 of the Export Administration Regulations, 15 CFR part 779, or to the exportation of goods for use in the transmission of any data. The exportation of such goods to Iran is prohibited, as provided in 560.204. (d) Travel. The prohibitions contained in this part do not apply to transactions ordinarily incident to travel to or from any country, including importation of accompanied baggage for personal use, maintenance within any country including payment of living expenses and acquisition of goods or services for personal use, and arrangement or facilitation of such travel including nonscheduled air, sea, or land voyages. This exemption extends to transactions with Iranian carriers and those involving group tours and payments in Iran made with cash or traveler's checks for transactions incident to personal travel. The use of currency drafts, charge, debit, or credit cards is not permitted. (e) Letters of Credit. Letters of credit and other financing agreements with respect to trade contracts in force as of May 6, 1995, may be performed pursuant to their terms with respect to underlying trade transactions occurring prior to 12:01 a.m. EDT, June 6, 1995. See 560.413. Subpart C -- General Definitions 560.301 Effective date. The term ``effective date'' means: (a) 12:01 p.m., Eastern Standard Time, October 29, 1987, for all prohibitions set forth in 560.201. (b) 12:01 a.m., Eastern Daylight Time, June 6, 1995, for all prohibitions set forth in 560.204, 560.205, and 560.206 with respect to trade transactions based on contracts in force as of May 6, 1995, and which were authorized pursuant to federal regulations in force immediately prior to May 6, 1995. (c) 12:01 a.m., Eastern Standard Time, March 16, 1995, for all prohibitions set forth in 560.209 and the prohibitions set forth in 560.203 as they apply to the prohibitions set forth in 560.209. (d) 12:01 a.m., Eastern Daylight Time, May 7, 1995, for all other prohibitions contained in this part. 560.302 [Reserved] 560.303 Iran; Iranian. The term ``Iran'' means the territory of Iran, and any other territory or marine area, including the exclusive economic zone and continental shelf, over which the Government of Iran claims sovereignty, sovereign rights or jurisdiction, provided that the Government of Iran exercises partial or total de facto control over the area or derives a benefit from economic activity in the area pursuant to an international agreement. The term ``Iranian'' means pertaining to Iran as defined in this section. 560.304 Government of Iran. The term ``Government of Iran'' includes: (a) The state and the Government of Iran, as well as any political subdivision, agency, or instrumentality thereof; (b) Any entity owned or controlled directly or indirectly by the foregoing; (c) Any person to the extent that such person is, or has been, or to the extent that there is reasonable cause to believe that such person is, or has been, since the applicable effective date, acting or purporting to act directly or indirectly on behalf of any of the foregoing; and (d) Any person or entity designated by the Secretary of the Treasury as included within paragraphs (a) through (c) of this section. 560.305 Person; entity. (a) The term ``person'' means an individual or entity. (b) The term ``entity'' means a partnership, association, trust, joint venture, corporation or other organization. 560.306 Iranian - origin goods and services. (a) The term ``goods or services of Iranian origin'' includes: (1) Goods grown, produced, manufactured, extracted, or processed in Iran; (2) Goods which have entered into Iranian commerce; and (3) Services performed in Iran or by the Government of Iran, as defined in 560.304. (b) The term ``services of Iranian origin'' does not include: (1) Diplomatic and consular services performed by or on behalf of the Government of Iran; (2) Diplomatic and consular services performed by or on behalf of the Government of the United States; or (3) Services provided in the United States by an Iranian national resident in the United States. 560.307 United States. The term ``United States'' means the United States, including its territories and possessions. 560.308 Importation. The term ``importation'' means the bringing of any goods into the United States, except that in the case of goods transported by vessel, ``importation'' means the bringing of any goods into the United States with the intent to unlade them. 560.309 [Reserved] 560.310 License. Except as otherwise specified, the term ``license'' means any license or authorization contained in or issued pursuant to this part. 560.311 General license. The term ``general license'' means any license or authorization the terms of which are set forth in this part. 560.312 Specific license. The term ``specific license'' means any license or authorization not set forth in this part but issued pursuant to this part. 560.313 Entity owned or controlled by the Government of Iran. The term ``entity owned or controlled by the Government of Iran'' includes any corporation, partnership, association, or other entity in which the Government of Iran owns a majority or controlling interest, and any entity which is otherwise controlled by that government. 560.314 United States person. The term ``United States person'' means any United States citizen, permanent resident alien, entity organized under the laws of the United States (including foreign branches), or any person in the United States. 560.315 Information or informational materials. (a) The term ``information'' or ``informational materials'' includes, without limitation: (1) Publications, films, posters, phonograph records, photographs, microfilms, microfiche, tapes, compact disks, CD ROMs, artworks, and news wire feeds. (2) To be considered ``information'' or ``informational materials'', artworks must be classified under chapter subheading 9701, 9702, or 9703 of the Harmonized Tariff Schedule of the United States. (b) The term ``information'' and ``informational materials'' with respect to United States exports does not include items: (1) That were, as of April 30, 1994, controlled for export pursuant to section 5 of the Export Administration Act of 1979, 50 U.S.C. App. 2401 - 2420 (the ``EAA''), or section 6 of the EAA to the extent that such controls promote the nonproliferation or antiterrorism policies of the United States, including ``software'' that is not ``publicly available'' as these terms are defined in 15 CFR parts 779 and 799.1; or (2) With respect to which acts are prohibited by 18 U.S.C. chapter 37. 560.316 New investment. The term ``new investment'' means a transaction after 12:01 EDT, May 7, 1995, that constitutes: (a) A commitment or contribution of funds or other assets; or (b) A loan or other extension of credit, as defined in 560.317. 560.317 Credits or loans. The term ``credits'' or ``loans'' means any transfer or extension of funds or credit on the basis of an obligation to repay, or any assumption or guarantee of the obligation of another to repay an extension of funds or credit, including but not limited to: overdrafts; currency swaps; purchases of debt securities issued by the Government of Iran; purchases of a loan made by another person; sales of financial assets subject to an agreement to repurchase; renewals or refinancings whereby funds or credits are transferred to or extended to a prohibited borrower or prohibited recipient; the issuance of standby letters of credit; and drawdowns on existing lines of credit. 560.318 Technology. For purposes of 560.204 and 560.205, the term ``technology'' includes technical data or other information subject to the Export Administration Regulations, 15 CFR parts 768 - 799. 560.319 United States depository institution. The term ``United States depository institution'' means: (a) Any entity organized under the laws of any jurisdiction within the United States (including its foreign branches), and (b) Any agency, office, or branch located in the United States of a foreign entity; that is engaged primarily in the business of banking, including accepting deposits and making, granting, transferring, holding, or brokering loans or credits, or purchasing or selling foreign exchange, or procuring purchasers and sellers thereof, as principal or agent. The term includes, among others, banks, savings banks, savings associations, mortgage companies, credit unions, and trust companies and United States holding companies. 560.320 Iranian accounts. The term ``Iranian accounts'' means accounts of persons located in Iran or of the Government of Iran maintained on the books of a United States depository institution. Subpart D -- Interpretations 560.401 Reference to amended sections. Except as otherwise specified, reference to any section of this part or to any regulation, ruling, order, instruction, direction, or license issued pursuant to this part refers to the same as currently amended. 560.402 Effect of amendment. Any amendment, modification, or revocation of any section of this part or of any order, regulation, ruling, instruction, or license issued by or under the direction of the Director of the Office of Foreign Assets Control does not, unless otherwise specifically provided, affect any act done or omitted to be done, or any civil or criminal suit or proceeding commenced or pending prior to such amendment, modification, or revocation. All penalties, forfeitures, and liabilities under any such order, regulation, ruling, instruction, or license continue and may be enforced as if such amendment, modification, or revocation had not been made. 560.403 - 560.405 [Reserved] 560.406 Transshipments prohibited. (a) The prohibitions in 560.201 apply to the importation into the United States, for transshipment or transit, of Iranian - origin goods which are intended or destined for third countries. (b) The prohibitions in 560.204 apply to the exportation from the United States, for transshipment or transit, of goods which are intended or destined for Iran. (c) The prohibitions in 560.205 apply to the reexportation of goods described in that section, for transshipment or transit, which are intended or destined for Iran. (d) The prohibitions in 560.206 apply to any transaction relating to the transshipment of goods of Iranian origin or owned or controlled by the Government of Iran through any country. 560.407 Transactions related to Iranian - origin goods. (a) Importation into the United States from third countries of goods containing Iranian - origin raw materials or components is not prohibited if those raw materials or components have been incorporated into manufactured products or substantially transformed in a third country by a person other than a United States person. (b) Transactions relating to Iranian - origin goods that have not been incorporated into manufactured products or substantially transformed in a third country are prohibited. (c) Transactions relating to goods containing Iranian - origin raw materials or components are not prohibited if those raw materials or components have been incorporated into manufactured products or substantially transformed in a third country by a person other than a United States person. 560.408 Importation into and release from a bonded warehouse or foreign trade zone. The prohibitions in 560.201 apply to importation into a bonded warehouse or a foreign trade zone of the United States. However, 560.201 does not prohibit the release from a bonded warehouse or a foreign trade zone of Iranian - origin goods imported into a bonded warehouse or a foreign trade zone prior to October 29, 1987. 560.409 [Reserved] 560.410 Exportation of services. (a) The prohibition on the exportation of services from the United States contained in 560.204 applies only to services performed on behalf of a person in Iran or the Government of Iran or where the benefit of such services is otherwise received in Iran, if such services are performed: (1) In the United States, or (2) Outside the United States by an individual United States person ordinarily resident in the United States, or (3) Outside the United States by an overseas branch of an entity located in the United States. (b) The benefit of services performed anywhere in the world on behalf of the Government of Iran is presumed to be received in Iran. (c) Services provided in the United States or by a United States person to a non - Iranian carrier transporting passengers or goods to or from Iran are not considered to be exported to Iran. (d) Services provided in a third country by a United States person ordinarily resident outside the United States are not considered to be exported from the United States. 560.411 Offshore transactions in Iranian - origin goods and services. The prohibitions contained in 560.206 apply to, among other things, transactions by United States persons in locations outside the United States with respect to goods or services which the United States person knows, or has reason to know, are of Iranian origin or owned or controlled by the Government of Iran, including: (a) Importing into or exporting from such locations; and (b) Purchasing, selling, financing, swapping, insuring, transporting, lifting, storing, incorporating, or transforming, or brokering any of the foregoing. 560.412 Extensions of credits or loans to Iran. (a) The prohibitions contained in 560.207 apply, among other things, to the unauthorized renewal or rescheduling of credits or loans in existence as of May 6, 1995. (b) The prohibitions contained in 560.209 apply, among other things, to the unauthorized renewal or rescheduling of credits or loans in existence as of March 15, 1995. (c) The prohibitions contained in 560.207 and 560.209 apply, among other things, to credits or loans in any currency. 560.413 Letter of credit payments by Iranian banks in the United States. (a) For purposes of the exemption in 560.210(e), payment of letters of credit and other financing agreements according to their terms includes, in the case of payments made by an Iranian bank's branch or agency located in the United States, payments that such branch or agency is: (1) Legally obligated to make pursuant to the terms of letters of credit and other financing agreements relating to pre - May 7, 1995 trade contracts; or (2) Licensed to make by the Office of Foreign Assets Control with respect to pre - May 7, 1995 trade contracts. (b) Payments that are not binding legal obligations of an Iranian bank's branch or agency pursuant to the terms of the letter of credit or other financing agreement are not covered by this exemption. 560.414 Exports to third countries; reexports. (a) The prohibitions contained in 560.205 do not apply to the reexportation to Iran by a person who is not a United States person of any item described in that section which was exported from the United States prior to 12:01 a.m. EDT, May 7, 1995, and was not the property of a United States person as of 12:01 a.m. EDT, May 7, 1995, if the reexportation to Iran of such item was not subject to export license application requirements under any United States regulations in effect immediately prior to May 6, 1995. (b) United States persons are prohibited as of 12:01 a.m. EDT, May 7, 1995, from reexporting any item subject to the prohibitions contained in 560.205 regardless of when the item was exported from the United States. United States persons are prohibited from approving or facilitating any reexport by an entity owned or controlled by a United States person of any item subject to the prohibitions of 560.205 of this part regardless of when the item was exported from the United States. (c) Effective 12:01 a.m. EDT May 7, 1995, the exportation from the United States to any destination of any item that was subject to export license application requirements under any United States regulations in effect immediately prior to May 6, 1995, is subject to the condition that the reexportation to Iran requires a specific license, except as otherwise authorized by this part. Subpart E -- Licenses, Authorizations and Statements of Licensing Policy 560.501 Effect of license or authorization. (a) No license or other authorization contained in this part, or otherwise issued by or under the direction of the Director of the Office of Foreign Assets Control, authorizes or validates any transaction effected prior to the issuance of the license, unless specifically provided in such license or other authorization. (b) No regulation, ruling, instruction, or license authorizes a transaction prohibited under this part unless the regulation, ruling, instruction, or license is issued by the Office of Foreign Assets Control and specifically refers to this part. No regulation, ruling, instruction, or license referring to this part authorizes any transactions prohibited by any provision of this chapter unless the regulation, ruling, instruction or license specifically refers to such provision. (c) Any regulation, ruling, instruction or license authorizing any transaction otherwise prohibited under this part has the effect of removing a prohibition or prohibitions contained in this part from the transaction, but only to the extent specifically stated by its terms. Unless the regulation, ruling, instruction or license otherwise specifies, such an authorization does not create any right, duty, obligation, claim, or interest in, or with respect to, any property which would not otherwise exist under ordinary principles of law. 560.502 Exclusion from licenses and authorizations. The Director of the Office of Foreign Assets Control reserves the right to exclude any person, property, or transaction from the operation of any license, or from the privileges therein conferred, or to restrict the applicability thereof with respect to particular persons, property, transactions, or classes thereof. Such action is binding upon all persons receiving actual or constructive notice of such exclusion or restriction. 560.503 - 560.504 [Reserved] 560.505 Certain services relating to participation in various events authorized. The importation of Iranian - origin services into the United States is authorized where such services are performed in the United States by an Iranian national who enters the United States on a visa issued by the State Department for the purpose of participating in a public conference, performance, exhibition or similar event, and such services are consistent with that purpose. 560.506 Importation and exportation of certain gifts authorized. The importation into the United States of Iranian - origin goods, and the exportation from the United States of goods, is authorized for goods sent as gifts to persons provided that the value of the gift is not more than $100. 560.507 Accompanied baggage authorized. (a) Persons entering the United States directly or indirectly from Iran are authorized to import into the United States Iranian - origin accompanied baggage normally incident to travel. (b) Persons leaving the United States for Iran are authorized to export from the United States accompanied baggage normally incident to travel. (c) This authorization applies to accompanied baggage that includes only articles that are necessary for personal use incident to travel, not intended for any other person or for sale, and are not otherwise prohibited from importation or exportation under applicable United States laws. 560.508 Telecommunications and mail transactions authorized. All transactions of common carriers incident to the receipt or transmission of telecommunications and mail between the United States and Iran are authorized. For purposes of this section, the term ``mail'' includes parcels only to the extent the parcels contain goods exempted from the prohibitions contained in this part or otherwise eligible for importation from or exportation to Iran under a general or specific license. 560.509 Certain transactions related to patents, trademarks and copyrights authorized. (a) All of the following transactions in connection with patent, trademark, copyright or other intellectual property protection in the United States or Iran are authorized: (1) The filing and prosecution of any application to obtain a patent, trademark, copyright or other form of intellectual property protection; (2) The receipt of a patent, trademark, copyright or other form of intellectual property protection; (3) The renewal or maintenance of a patent, trademark, copyright or other form of intellectual property protection; and (4) The filing and prosecution of opposition or infringement proceedings with respect to a patent, trademark, copyright or other form of intellectual property protection, or the entrance of a defense to any such proceedings. (b) Nothing in this section affects obligations under any other provision of law. 560.510 Transactions related to the resolution of disputes between the United States or United States nationals and the Government of Iran. (a) Except as otherwise authorized, specific licenses may be issued on a case - by - case basis to authorize transactions in connection with awards, decisions or orders of the Iran - United States Claims Tribunal in The Hague, the International Court of Justice, or other international tribunals (collectively, ``tribunals''); agreements settling claims brought before tribunals; and awards, orders, or decisions of an administrative, judicial or arbitral proceeding in the United States or abroad, where the proceeding involves the enforcement of awards, decisions or orders of tribunals, or is contemplated under an international agreement, or involves claims arising before 12:01 a.m. EDT, May 7, 1995, that resolve disputes between the Government of Iran and the United States or United States nationals, including the following transactions: (1) Importation into the United States of, or any transaction related to, goods and services of Iranian origin or owned or controlled by the Government of Iran; (2) Exportation or reexportation to Iran or the Government of Iran of any goods, technology, or services, except to the extent that such exportation or reexportation is also subject to export licensing application requirements of another agency of the United States Government and the granting of such a license by that agency would be prohibited by law; (3) Financial transactions related to the resolution of disputes at tribunals, including transactions related to the funding of proceedings or of accounts related to proceedings or to a tribunal; participation, representation, or testimony before a tribunal; and the payment of awards of a tribunal; and (4) Other transactions otherwise prohibited by this part which are necessary to permit implementation of the foregoing awards, decisions, orders, or agreements. (b) Specific licenses may be issued on a case - by - case basis to authorize payment of costs related to the storage or maintenance of goods in which the Government of Iran has title, and to authorize the transfer of title to such goods, provided that such goods are in the United States and that such goods are the subject of a proceeding pending before a tribunal. (c)(1) All transactions are authorized with respect to the importation of Iranian - origin goods and services necessary to the initiation and conduct of legal proceedings, in the United States or abroad, including administrative, judicial and arbitral proceedings and proceedings before tribunals. (2) Specific licenses may be issued on a case - by - case basis to authorize the exportation to Iran or the Government of Iran of goods, and of services not otherwise authorized by 560.525, necessary to the initiation and conduct of legal proceedings, in the United States or abroad, including administrative, judicial and arbitral proceedings and proceedings before tribunals, except to the extent that the exportation is also subject to export licensing application requirements of another agency of the United States Government and the granting of such a license by that agency would be prohibited by law. (3) Representation of United States persons or of third country persons in legal proceedings, in the United States or abroad, including administrative, judicial and arbitral proceedings and proceedings before tribunals, against Iran or the Government of Iran is not prohibited by this part. The exportation of certain legal services to a person in Iran or the Government of Iran is authorized in 560.525. (d) The following are authorized: (1) All transactions related to payment of awards of the Iran - United States Claims Tribunal in The Hague against Iran out of the Security Account provided for in paragraph 7 of the Declaration of the Government of the Democratic and Popular Republic of Algeria of January 19, 1981. (2) All transactions necessary to the payment of awards in a legal proceeding to which the United States Government is a party, or to payments pursuant to settlement agreements entered into by the United States Government in such a legal proceeding. 560.511 [Reserved] 560.512 Iranian Government missions in the United States. (a) All transactions ordinarily incident to the importation of goods or services into the United States by, the exportation of goods or services from the United States by, or the provision of goods or services in the United States to, the missions of the Government of Iran to international organizations in the United States, and Iranians admitted to the United States under section 101(a)(15)(G) of the Immigration and Nationality Act (``INA''), 8 U.S.C. 1101(a)(15)(G), are authorized, provided that: (1) The goods or services are for the conduct of the official business of the mission, or for personal use of personnel admitted to the United States under INA section 101(a)(15)(G), and are not for resale; and (2) The transaction is not otherwise prohibited by law. (b) All transactions ordinarily incident to the importation of goods or services into the United States by, the exportation of goods or services from the United States by, or the provision of goods or services in the United States to, the Iranian Interests Section of the Embassy of Pakistan (or any successor protecting power) in the United States, are authorized, provided that: (1) The goods or services are for the conduct of the official business of the Iranian Interests Section, and are not for resale; and (2) The transaction is not otherwise prohibited by law. (c) All transactions ordinarily incident to the provision of goods or services in the United States to the employees of Iranian missions to international organizations in the United States, and to employees of the Iranian Interests Section of the Embassy of Pakistan (or any successor protecting power) in the United States, are authorized, provided that the transaction is not otherwise prohibited by law. 560.513 Importation of Iranian - origin oil. (a) Specific licenses will be issued on a case - by - case basis to permit the importation of Iranian - origin oil in connection with the resolution or settlement of cases before the Iran - United States Claims Tribunal in The Hague, established pursuant to the Declaration of the Government of the Democratic and Popular Republic of Algeria Concerning the Settlement of Claims by the Government of the United States of America and the Government of the Islamic Republic of Iran of January 19, 1981, or where the proceeds are otherwise to be deposited in the Tribunal's Security Account. (b) License applications submitted pursuant to this section must contain the importer's certification that the oil is of Iranian origin with all relevant supporting documentation, including specification of the production site at which the oil was extracted, and that the sale or transfer of the oil is by or for the account of the Government of Iran. Licenses will not be issued for importations of Iranian - origin oil which is not sold or transferred by or for the account of the Government of Iran. In cases where the oil is being imported either in whole or in part in resolution or settlement of a case pending before the Tribunal, applicants are required to identify the case and submit a copy of the settlement agreement and the Award on Agreed Terms issued by the Tribunal. In cases where any proceeds are generated for the account of the Government of Iran from the importation of Iranian - origin oil, the importer must demonstrate that irrevocable arrangements are in place that will ensure that the proceeds will be deposited in the Tribunal's Security Account. 560.514 [Reserved] 560.515 30 - day delayed effective date for pre - May 7, 1995 trade contracts involving Iran. (a) All transactions necessary to complete performance of a trade contract entered into prior to May 7, 1995, and involving Iran (a ``pre - existing trade contract''), including the exportation of goods, services (including financial services), or technology from the United States that was authorized pursuant to Federal regulations in force immediately prior to May 6, 1995, or performance under a pre - existing trade contract for transactions in Iranian - origin or Government of Iran owned or controlled goods or services not involving importation into the United States, are authorized without specific licensing by the Office of Foreign Assets Control if the conditions in paragraph (a)(1) or (a)(2) are met: (1) If the pre - existing trade contract is for exportation of goods or technology from the United States that was authorized pursuant to Federal regulations in force immediately prior to May 6, 1995, the goods or technology must be exported from the United States prior to 12:01 a.m. EDT, June 6, 1995, and all other activity by U.S. persons that is necessary and incidental to the performance of the pre - existing trade contract (other than payment under a financing contract) must be completed prior to 12:01 a.m. EDT, August 6, 1995; or (2) If the pre - existing trade contract is for: (i) The exportation of services from the United States and benefitting a person in Iran or the Government of Iran; or (ii) The reexportation of goods or technology to Iran, the Government of Iran, or an entity owned or controlled by the Government of Iran that was authorized pursuant to Federal regulations in force immediately prior to May 6, 1995, or (iii) Transactions relating to goods or services of Iranian origin or owned or controlled by the Government of Iran other than transactions relating to importation into the United States of such goods or services, all obligations under the pre - existing trade contract (other than payment under a financing contract) must be fully completed prior to 12:01 a.m. EDT, June 6, 1995. (b) In order to complete performance of a pre - existing trade contract, the arrangement or renegotiation of contracts for transactions necessary and incidental to performance of the pre - existing trade contract is authorized. Such incidental transactions may include, for example, financing, shipping and insurance arrangements. Amendments to a pre - existing trade contract for the purpose of accelerating a previously - specified delivery schedule under a contract for a fixed quantity or value of goods, technology or services, or curtailing or canceling required performance, are authorized without specific licensing. Any other alteration of the trade contract must be specifically licensed by the Office of Foreign Assets Control. (c) The existence of a contract will be determined with reference to the principles contained in Article 2 of the Uniform Commercial Code. (d) No U.S. person may change its policies or operating procedures in order to enable a foreign entity owned or controlled by U.S. persons to enter into a transaction that could not be entered into directly by a U.S. person located in the United States pursuant to the prohibitions contained in this part. 560.516 Payment and United States dollar clearing transactions involving Iran. (a) United States depository institutions are authorized to process transfers of funds to or from Iran, or for the direct or indirect benefit of persons in Iran or the Government of Iran, if the transfer is covered in full by any of the following conditions and does not involve debiting or crediting an Iranian account: (1) The transfer is by order of a foreign bank which is not an Iranian entity from its own account in a domestic bank (directly or through a foreign branch or subsidiary of a domestic bank) to an account held by a domestic bank (directly or through a foreign branch or subsidiary of a domestic bank) for a second foreign bank which is not an Iranian entity. For purposes of this section ``foreign bank'' includes a foreign subsidiary, but not a foreign branch of a domestic bank; (2) The transfer arises from an underlying transaction that has been authorized by a specific or general license issued pursuant to this part; (3) The transfer arises from an underlying transaction that is not prohibited or is exempted from regulation pursuant to Section 203(b) of the International Emergency Economic Powers Act, 50 U.S.C. 1702(b), such as an exportation of information or informational materials to Iran, a travel - related remittance, or payment for the shipment of a donation of articles to relieve human suffering or a third country transaction not involving a United States person nor otherwise prohibited by this part; or (4) The transfer is a non - commercial remittance to or from Iran, such as a family remittance not related to a family - owned enterprise. (b) Before a United States depository institution initiates a payment subject to the prohibitions contained in this part on behalf of any customer, or credits a transfer subject to such prohibitions to the account on its books of the ultimate beneficiary, the U.S. depository institution must determine that the transfer is not prohibited by this part. (c) Pursuant to the prohibitions contained in 560.208, a United States depository institution may not make transfers to or for the benefit of a foreign-organized entity owned or controlled by it if the underlying transaction would be prohibited if engaged in directly by the U.S. depository institution. (d) This section does not authorize transactions with respect to property blocked pursuant to part 535. 560.517 Exportation of services: Iranian accounts at United States depository institutions. (a) United States depository institutions are prohibited from performing services with respect to Iranian accounts, as defined in 560.320, at the instruction of the Government of Iran or persons located in Iran, except that United States depository institutions are authorized to provide and be compensated for services and incidental transactions with respect to: (1) The maintenance of Iranian accounts, including the payment of interest and the debiting of service charges; (2) The processing of transfers arising from underlying transactions that are exempted from regulation pursuant to section 203(b) of the International Emergency Economic Powers Act, 50 U.S.C. 1702(b), such as an exportation of information or informational materials to Iran, a travel - related remittance, or payment for the shipment of a donation of articles to relieve human suffering; and (3) At the request of the account party, the closing of Iranian accounts and the lump sum transfer only to the account party of all remaining funds and other assets in the account. (b) Specific licenses may be issued with respect to the operation of Iranian accounts that constitute accounts of: (1) Foreign government missions and their personnel in Iran; or (2) Missions of the Government of Iran in the United States. 560.518 Transactions in Iranian - origin and Iranian Government property. (a) Except for transactions involving the Government of Iran, all domestic transactions with respect to Iranian - origin goods located in the United States are authorized, provided that this paragraph (a) does not affect the status of property blocked pursuant to part 535 or detained or seized, or subject to detention or seizure, pursuant to this part. (b) All transactions necessary and incidental to a United States person's sale or other disposition of goods or services of Iranian origin or owned or controlled by the Government of Iran that are located or to be performed outside the United States and were acquired by that United States person in transactions not prohibited by part 535 or this part are authorized, provided: (1) The sale or other disposition does not result in the importation of such goods or services into the United States, and (2) The sale or other disposition is completed no later than 12:01 a.m. EDT, August 6, 1995. (c) Except as provided in paragraphs (a) and (b) of this section, United States persons may not deal in goods or services of Iranian origin or owned or controlled by the Government of Iran, except that the following transactions are authorized: (1) Transactions by a United States person with third - country nationals incidental to the storage and maintenance in third countries of Iranian - origin goods owned prior to May 7, 1995, by that United States person or acquired thereafter by that United States person consistent with the provisions of this part; (2) Exportation of Iranian - origin household and personal effects from the United States incident to the relocation of United States persons outside the United States; and (3) Purchase for personal use or consumption in Iran of Iranian - origin goods or services. (d) In addition to transactions authorized by paragraph (c)(1) of this section, a United States person is authorized after 12:01 a.m. EDT, May 7, 1995, to use or dispose of Iranian - origin household and personal effects that are located outside the United States and that have been acquired by the United States person in transactions not prohibited by part 535 or this part. 560.519 Policy governing news organization offices. (a) Specific licenses may be issued on a case - by - case basis authorizing transactions necessary for the establishment and operation of news bureaus in Iran by United States organizations whose primary purpose is the gathering and dissemination of news to the general public. (b) Transactions that may be authorized include but are not limited to those incident to the following: (1) Leasing office space and securing related goods and services; (2) Hiring support staff; (3) Purchasing Iranian - origin goods for use in the operation of the office; and (4) Paying fees related to the operation of the office in Iran. (c) Specific licenses may be issued on a case - by - case basis authorizing transactions necessary for the establishment and operation of news bureaus in the United States by Iranian organizations whose primary purpose is the gathering and dissemination of news to the general public. (d) The number assigned to such specific licenses should be referenced in all import and export documents and in all funds transfers and other banking transactions through banking institutions organized or located in the United States in connection with the licensed transactions to avoid disruption of the trade and financial transactions. 560.520 Exportation of agricultural commodities. (a) All transactions by United States persons in connection with the exportation from the United States to Iran of any agricultural commodity under an export sales contract are authorized, provided: (1) Such contract was entered into prior to 12:01 a.m. EDT, May 7, 1995; and (2) The terms of such contract require delivery of the commodity prior to February 2, 1996. (b) The performance of letters of credit and other financing agreements with respect to exports authorized by this section is authorized pursuant to their terms. (c) For purposes of this section, the term ``agricultural commodity'' means feed grains, rice, wheat, cotton, peanuts, tobacco, dairy products, and oilseeds (including vegetable oil). (d) Specific licenses may be granted on a case - by - case basis for transactions by United States persons in connection with the exportation of other agricultural articles from the United States to Iran that do not fall within the definition of ``agricultural commodity'' contained in paragraph (c) of this section, provided such exportation is pursuant to an export sales contract and the conditions contained in paragraphs (a)(1) and (a)(2) of this section are met. 560.521 Diplomatic pouches. All transactions in connection with the importation into the United States from Iran, or the exportation from the United States to Iran, of diplomatic pouches and their contents are authorized. 560.522 Allowable payments for overflights of Iranian airspace. Payments to Iran of charges for services rendered by the Government of Iran in connection with the overflight of Iran or emergency landing in Iran of aircraft owned by a United States person or registered in the United States are authorized. 560.523 Importation of information and informational materials. (a) In addition to transactions relating to information or informational materials that are exempted from regulation under 560.210, the following are authorized: (1) The importation of information and informational materials of Iranian origin from any location, whether commercial or otherwise, regardless of format or medium of transmission; and (2) All financial and other transactions related to the importation of information and informational materials. (b) Specific licenses may be issued on a case - by - case basis for the exportation of equipment necessary for the establishment of news wire feeds or other transmissions of information or informational materials. 560.524 Household goods and personal effects. (a) The exportation from the United States to Iran of household and personal effects, including baggage and articles for family use, of persons departing the United States to relocate in Iran is authorized provided the articles included in such effects have been actually used by such persons or by family members accompanying them, are not intended for any other person or for sale, and are not otherwise prohibited from exportation. See also, 560.518(c)(2). (b) The importation of Iranian - origin household and personal effects, including baggage and articles for family use, of persons arriving in the United States is authorized; to qualify, articles included in such effects must have been actually used abroad by such persons or by other family members arriving from the same foreign household, must not be intended for any other person or for sale, and must not be otherwise prohibited from importation. 560.525 Exportation of certain legal services. (a) The provision of the following legal services to the Government of Iran or to a person in Iran, and receipt of payment therefor, are authorized: (1) Provision of legal advice and counselling on the requirements of and compliance with the laws of any jurisdiction within the United States, provided that such advice and counselling is not provided to facilitate transactions that would violate any of the prohibitions contained in this part; (2) Representation when a person in Iran or the Government of Iran has been named as a defendant in or otherwise made a party to domestic United States legal, arbitration, or administrative proceedings; (3) Initiation of domestic United States legal, arbitration, or administrative proceedings in defense of property interests of the Government of Iran that were in existence prior to May 7, 1995, or acquired thereafter in a transaction not inconsistent with the prohibitions contained in this part; (4) Representation before any federal or state agency with respect to the imposition, administration, or enforcement of United States sanctions against Iran; (5) Initiation and conduct of legal proceedings, in the United States or abroad, including administrative, judicial and arbitral proceedings and proceedings before international tribunals (including the Iran - United States Claims Tribunal in The Hague and the International Court of Justice): (i) To resolve disputes between the Government of Iran and the United States or a United States national; (ii) Where the proceeding is contemplated under an international agreement; or (iii) Where the proceeding involves the enforcement of awards, decisions, or orders resulting from legal proceedings within the scope of paragraph (a)(5)(i) or (a)(5)(ii) of this section, provided that any transaction, unrelated to the provision of legal services or the payment therefor, that is necessary or related to the execution of an award, decision or order resulting from such legal proceeding, or otherwise necessary for the conduct of such proceeding, and which would otherwise be prohibited by this part requires a specific license in accordance with 560.510 and 560.801; (6) Provision of legal advice and counselling in connection with settlement or other resolution of matters described in paragraph (a)(5) of this section; and (7) Provision of legal services in any other context in which prevailing United States law requires access to legal counsel at public expense. (b) The provision of any other legal services to a person in Iran or the Government of Iran, not otherwise authorized in or exempted by this part, requires the issuance of a specific license. 560.526 Commodities trading and related transactions. (a) Trading in Iranian - origin commodities. With respect to 560.206, specific licenses may be issued on a case - by - case basis to authorize certain commodities trading by a United States person in Iranian - origin goods, or transactions incidental to such trading, where: (1) No party to the transaction with the United States person is a person in Iran or the Government of Iran, and (2) It was impossible for the United States person to determine at the time of entry into the transaction, given all circumstances of the transaction, that the goods would be of Iranian origin or would be owned or controlled by the Government of Iran. (b) Trading in commodities destined for Iran or the Government of Iran. With respect to 560.204, specific licenses may be issued on a case - by - case basis to authorize certain trading by United States persons in commodities of U.S. or third - country origin destined for Iran or the Government of Iran, or transactions incidental to such trading, where: (1) It was impossible for the United States person to determine at the time of entry into the transaction, given all circumstances of the transaction, that the goods would be for delivery to Iran or to the Government of Iran; (2) The United States person did not contract with a person in Iran or the Government of Iran; and (3) The United States person did not initiate the nomination of the commodity's destination as Iran or the Government of Iran. 560.527 Rescheduling existing loans. Specific licenses may be issued on a case - by - case basis for rescheduling loans or otherwise extending the maturities of existing loans, and for charging fees or interest at commercially reasonable rates, in connection therewith, provided that no new funds or credits are thereby transferred or extended to Iran or the Government of Iran. 560.528 Aircraft safety. Specific licenses may be issued on a case - by - case basis for the exportation and reexportation of goods, services, and technology to insure the safety of civil aviation and safe operation of U.S. - origin commercial passenger aircraft. Subpart F -- Reports 560.601 Required records. Every person engaging in any transaction subject to the provisions of this part must keep a full and accurate record of each such transaction in which that person engages, regardless of whether such transaction is effected pursuant to license or otherwise, and such record must be available for examination for at least 2 years after the date of such transaction. 560.602 Reports to be furnished on demand. Every person is required to furnish under oath, in the form of reports or otherwise, from time to time and at any time as may be required, complete information relative to any transaction, regardless of whether such transaction is effected pursuant to license or otherwise, subject to the provisions of this part. Such reports may be required to include the production of any books of account, contracts, letters or other papers, connected with any such transaction or property, in the custody or control of the persons required to make such reports. Reports with respect to transactions may be required either before or after such transactions are completed. The Director of Foreign Assets Control may, through any person or agency, conduct investigations, hold hearings, administer oaths, examine witnesses, receive evidence, take depositions, and require by subpoena the attendance and testimony of witnesses and the production of all books, papers, and documents relating to any matter under investigation, regardless of whether any report has been required or filed in connection therewith. 560.603 Reports on oil transactions engaged in by foreign affiliates. (a) Requirement for reports. Reports are required to be filed in the manner prescribed in this section with respect to all reportable transactions, as defined in paragraph (f) of this section, engaged in by the foreign affiliates of a United States person. Reports are due within fifteen days after the end of each calendar quarter. The first report must cover the period beginning June 6, 1995, and ending September 30, 1995. Reports must be filed covering each three - month period thereafter. (b) Who must report. Reports are required to be filed by any United States person whose foreign affiliate engaged in a reportable transaction during the prior calendar quarter. A single United States entity within a consolidated or affiliated group may be designated to report on each foreign affiliate of the United States members of the group. Such centralized reporting may be done by the United States person who owns or controls, or has been delegated authority to file on behalf of, the remaining United States persons in the group. (c) What must be reported. (1) Part I of the report must include the following information with respect to United States persons with a foreign affiliate: (i) Its name and address; (ii) Its principal place of business; (iii) For entities, its state of incorporation; and (iv) The name, corporate title, and telephone number of the individual to contact concerning the report. (2) Part II of the report must include the following information with respect to the foreign affiliate: (i) Its name and address; (ii) The country of its incorporation and its principal place of business; (iii) Its entity type (e.g., corporation, partnership, limited liability company, etc.); (iv) Its relationship to the reporting United States person, including percentage of direct and indirect ownership; (v) The name, title, and nationality of principal corporate officers; and (vi) A description of the manner and degree to which the United States person exercises control over the foreign affiliate's oil - related transactions. The description must include any written or verbal directions or instructions issued by the United States person to the foreign affiliate concerning such transactions, any requirements for prior approval by the United States person concerning such transactions, and the frequency of, and the nature of information contained in, written or verbal reports by the foreign affiliate to the United States person in which these transactions are described, aggregated, or summarized. (3) Part III of the report must include the following information with respect to each reportable transaction (a separate part III must be submitted for each reportable transaction): (i) The nature of transaction (e.g., purchase, sale, swap); (ii) A description of the product, technology, or service involved; (iii) The name of the Iranian or third country party involved in the transaction; (iv) The currency and amount of the transaction (and corresponding United States dollar value of the transaction, if not conducted in United States dollars); (v) The division or branch of the foreign affiliate involved in the negotiating and executing of the transaction; (vi) The name, corporate title, and nationality of each employee engaged in the transaction; and (vii) How the transaction is reflected in the report or reports as required by paragraph (c)(2)(vi) of this section. If the transaction is aggregated with other transactions, an explanation must be provided for all the components in the aggregate report. (d) Where to report. Reports must be filed with the Compliance Programs Division, Office of Foreign Assets Control, Department of the Treasury, 1500 Pennsylvania Avenue, NW - - Annex, Washington, DC 20220. Reports may be submitted by facsimile transmission at 202 - 622 - 1657. A copy must be retained for the reporter's records. (e) Whom to contact. Blocked Assets Division, Office of Foreign Assets Control, Department of the Treasury, 1500 Pennsylvania Avenue, NW - - Annex, Washington, DC 20220, telephone: 202 - 622 - 2440. (f) Definitions. For the purposes of this section: (1) The term ``foreign affiliate'' means a person or entity (other than a United States person as defined in 560.314) which is organized or located outside of the United States, and which is owned or controlled by a United States person or persons; and (2) The term ``reportable transaction'' includes any purchase, sale, or swap, or the provision of services related to such purchase, sale, or swap, such as financing, lifting, transporting, insuring, processing, transforming, or incorporating, related to: (i) Iranian - origin crude oil or natural gas; or (ii) Crude oil or natural gas and involving Iran or the Government of Iran. Subpart G -- Penalties 560.701 Penalties. (a) Attention is directed to 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705), which provides that a civil penalty of not to exceed $10,000 may be imposed on any person who violates any license, order, or regulation issued under the International Emergency Economic Powers Act, and that whoever willfully violates any license, order, or regulation issued under the International Emergency Economic Powers Act may, upon conviction, be fined not more than $50,000, or, if a natural person, may be imprisoned for not more than 10 years, or both; and any officer, director, or agent of any corporation who knowingly participates in such violation may be punished by a like fine, imprisonment, or both. Section 206 of the International Emergency Economic Powers Act is applicable to violations of any provision of this part and to violations of the provisions of any license, ruling, regulation, order, direction, or instruction issued by or pursuant to the direction or authorization of the Secretary of the Treasury pursuant to this part or otherwise under the International Emergency Economic Powers Act. (b) Attention is directed to 18 U.S.C. 1001, which provides that whoever, in any matter within the jurisdiction of any department or agency of the United States, knowingly and willfully falsifies, conceals or covers up by any trick, scheme, or device a material fact, or makes any false, fictitious or fraudulent statements or representation or makes or uses any false writing or document knowing the same to contain any false, fictitious or fraudulent statement or entry, may be fined not more than $10,000 or imprisoned not more than 5 years, or both. (c) Violations of this part may also be subject to relevant provisions of the Customs laws and other applicable laws. 560.702 Detention of shipments. Import shipments into the United States of Iranian - origin goods in violation of 560.201 and export shipments from the United States of goods destined for Iran in violation of 560.202 or 560.204 shall be detained. No such import, export, or reexport will be permitted to proceed, except as specifically authorized by the Secretary of the Treasury. Unless licensed, such shipments are subject to penalty or seizure and forfeiture action, under the Customs laws or other applicable provisions of law, depending on the circumstances. 560.703 Prepenalty notice. (a) When required. If the Director of the Office of Foreign Assets Control has reasonable cause to believe that there has occurred a violation of any provision of this part or a violation of the provisions of any license, ruling, regulation, order, direction or instruction issued by or pursuant to the direction or authorization of the Secretary of the Treasury pursuant to this part or otherwise under the International Emergency Economic Powers Act, and the Director determines that further proceedings are warranted, he may issue to the person concerned a notice of his intent to impose a monetary penalty. The prepenalty notice may be issued whether or not another agency has taken any action with respect to this matter. (b) Contents -- (1) Facts of violation. The prepenalty notice will describe the violation, specify the laws and regulations allegedly violated, and state the amount of the proposed monetary penalty. (2) Right to make presentations. The prepenalty notice also shall inform the person of his right to make a written presentation within 30 days of mailing of the notice as to why a monetary penalty should not be imposed, or, if imposed, why it should be in a lesser amount than proposed. 560.704 Presentation responding to prepenalty notice. (a) Time within which to respond. The named person shall have 30 days from the date of mailing of the prepenalty notice to make a written presentation to the Director. (b) Form and contents of the written presentation. The written presentation need not be in any particular form, but shall contain information sufficient to indicate that it is in response to the prepenalty notice. It should contain responses to the allegations in the prepenalty notice and set forth the reasons why the person believes the penalty should not be imposed or, if imposed, why it should be in a lesser amount than proposed. 560.705 Penalty notice. (a) No violation. If, after considering any presentations made in response to the prepenalty notice and any relevant facts, the Director determines that there was no violation by the person named in the prepenalty notice, he shall promptly notify the person in writing of the determination and that no monetary penalty will be imposed. (b) Violation. If, after considering any presentations made in response to the prepenalty notice, the Director determines that there was a violation by the person named in the prepenalty notice, he may issue a written notice of the imposition of the monetary penalty to that person. 560.706 Referral for administrative collection measures or to United States Department of Justice. In the event that the person named does not pay the penalty imposed pursuant to this part or make payment arrangements acceptable to the Director within 30 days of the mailing of the written notice of the imposition of the penalty, the matter may be referred for administrative collection measures or to the United States Department of Justice for appropriate action to recover the penalty in a civil suit in a Federal district court. Subpart H -- Procedures 560.801 Licensing. (a) General licenses. General licenses have been issued authorizing under appropriate terms and conditions certain types of transactions which are subject to the prohibitions contained in this part. All such licenses in effect on the date of publication are set forth in subpart E of this part. It is the policy of the Office of Foreign Assets Control not to grant applications for specific licenses authorizing transactions to which the provisions of an outstanding general license are applicable. Persons availing themselves of certain general licenses may be required to file reports and statements in accordance with the instructions specified in those licenses. Failure to file such reports or statements will nullify the authorization to such person provided by the general license. (b) Specific licenses -- (1) General course of procedure. Transactions subject to the prohibitions contained in this part which are not authorized by general license may be effected only under specific licenses. (2) Applications for specific licenses. Applications for specific licenses to engage in any transactions prohibited by or pursuant to this part may be filed by letter with the Office of Foreign Assets Control. Any person having an interest in a transaction or proposed transaction may file an application for a license authorizing such transaction, but the applicant for a specific license is required to make full disclosure of all parties in interest to the transaction so that a decision on the application may be made with full knowledge of all relevant facts and so that the identity and location of the persons who know about the transaction may be easily ascertained in the event of inquiry. (3) Information to be supplied. The applicant must supply all information specified by relevant instructions and/or forms, and must fully disclose the names of all the parties who are concerned with or interested in the proposed transaction. If the application is filed by an agent, the agent must disclose the name of his principal(s). Such documents as may be relevant shall be attached to each application as a part of such application except that documents previously filed with the Office of Foreign Assets Control may, where appropriate, be incorporated by reference. Applicants may be required to furnish such further information as is deemed necessary to a proper determination by the Office of Foreign Assets Control. Any applicant or other party in interest desiring to present additional information or discuss or argue the application may do so at any time before or after decision. Arrangements for oral presentation should be made with the Office of Foreign Assets Control. (4) Effect of denial. The denial of a license does not preclude the reopening of an application or the filing of a further application. The applicant or any other party in interest may at any time request explanation of the reasons for a denial by correspondence or personal interview. (5) Reports under specific licenses. As a condition for the issuance of any license, the licensee may be required to file reports with respect to the transaction covered by the license, in such form and at such times and places as may be prescribed in the license or otherwise. (6) Issuance of license. Licenses will be issued by the Office of Foreign Assets Control acting on behalf of the Secretary of the Treasury, or licenses may be issued by the Secretary of the Treasury acting directly or through any specifically designated person, agency, or instrumentality. (c) Address. License applications, reports, and inquiries should be addressed to the appropriate section or individual within the Office of Foreign Assets Control, or to the Director, at the following address: Office of Foreign Assets Control, Department of the Treasury, 1500 Pennsylvania Avenue, NW - - Annex, Washington, DC 20220. 560.802 Decisions. The Office of Foreign Assets Control will advise each applicant of the decision respecting filed applications. The decision of the Office of Foreign Assets Control acting on behalf of the Secretary of the Treasury with respect to an application shall constitute final agency action. 560.803 Amendment, modification, or revocation. The provisions of this part and any rulings, licenses, whether general or specific, authorizations, instructions, orders, or forms issued hereunder may be amended, modified, or revoked at any time. 560.804 Rulemaking. (a) All rules and other public documents are issued by the Secretary of the Treasury upon recommendation of the Director of the Office of Foreign Assets Control. In general, rulemaking by the Office of Foreign Assets Control involves foreign affairs functions of the United States, and for that reason is exempt from the requirements under the Administrative Procedure Act (5 U.S.C. 553) for notice of proposed rulemaking, opportunity for public comment, and delay in effective date. Wherever possible, however, it is the practice of the Office of Foreign Assets Control to receive written submissions or hold informal consultations with interested parties before the issuance of any rule or other public document. (b) Any interested person may petition the Director of the Office of Foreign Assets Control in writing for the issuance, amendment, or repeal of any rule. 560.805 Delegation by the Secretary of the Treasury. Any action which the Secretary of the Treasury is authorized to take pursuant to Executive Order 12613, Executive Order 12957, Executive Order 12959, and any further Executive orders relating to the national emergency declared in Executive Order 12957 may be taken by the Director, Office of Foreign Assets Control, or by any other person to whom the Secretary of the Treasury has delegated authority so to act. 560.806 Customs procedures: Goods specified in 560.201. (a) With respect to goods specified in 560.201, and not otherwise licensed or excepted from the scope of that section, appropriate Customs officers shall not accept or allow any: (1) Entry for consumption or warehouse (including any appraisement entry, any entry of goods imported in the mails, regardless of value, and any informal entries); (2) Entry for immediate exportation; (3) Entry for transportation and exportation; (4) Withdrawal from warehouse; (5) Admission, entry, transfer or withdrawal to or from a foreign trade zone; or (6) Manipulation or manufacture in a warehouse or in a foreign trade zone. (b) Customs officers may accept or allow the importation of Iranian - origin goods under the procedures listed in paragraph (a) if: (1) A specific license pursuant to this part is presented; or (2) Instructions authorizing the transaction are received from the Office of Foreign Assets Control. (c) Whenever a specific license is presented to an appropriate Customs officer in accordance with this section, one additional legible copy of the entry, withdrawal or other appropriate document with respect to the merchandise involved must be filed with the appropriate Customs officers at the port where the transaction is to take place. Each copy of any such entry, withdrawal or other appropriate document, including the additional copy, must bear plainly on its face the number of the license pursuant to which it is filed. The original copy of the specific license must be presented to the appropriate Customs officers in respect of each such transaction and must bear a notation in ink by the licensee or person presenting the license showing the description, quantity and value of the merchandise to be entered, withdrawn or otherwise dealt with. This notation must be so placed and so written that there will exist no possibility of confusing it with anything placed on the license at the time of its issuance. If the license in fact authorizes the entry, withdrawal, or other transaction with regard to the merchandise, the appropriate Customs officer, or other authorized Customs employee, shall verify the notation by signing or initialing it after first assuring himself that it accurately describes the merchandise it purports to represent. The license shall thereafter be returned to the person presenting it and the additional copy of the entry, withdrawal or other appropriate document shall be forwarded by the appropriate Customs officer to the Office of Foreign Assets Control. (d) If it is unclear whether an entry, withdrawal or other action affected by this section requires a specific license from the Office of Foreign Assets Control, the appropriate Customs officer may withhold any action thereon and shall advise such person to communicate directly with the Office of Foreign Assets Control to request that instructions be sent to the Customs officer to authorize him to take action with regard thereto. 560.807 Rules governing availability of information. (a) The records of the Office of Foreign Assets Control which are required by 5 U.S.C. 552 to be made available to the public shall be made available in accordance with the definitions, procedures, payment of fees, and other provisions of the Regulations on the Disclosure of Records of the Office of the Secretary and of other bureaus and offices of the Department of Treasury issued pursuant to 5 U.S.C. 552 and published at 31 CFR part 1. (b) The records of the Office of Foreign Assets Control required by the Privacy Act (5 U.S.C. 552a) to be made available to an individual shall be made available in accordance with the definitions, procedures, requirements for payment of fees, and other provisions of the Regulations on Disclosure of Records of the Departmental Offices and of other bureaus and offices of the Department of the Treasury issued under 5 U.S.C. 552a and published at 31 CFR part 1. (c) Any form issued for use in connection with the Iranian Transactions Regulations may be obtained in person or by writing to the Office of Foreign Assets Control, Department of the Treasury, 1500 Pennsylvania Avenue, NW - - Annex, Washington, DC 20220 or by calling 202/622 - 2480. Subpart I -- Paperwork Reduction Act 560.901 Paperwork Reduction Act notice. The information collection requirements in 560.601, 560.602, and 560.801 have been approved by the Office of Management and Budget and assigned control number 1505 - 0106.