Order Issued Barring Re-Export of Attack Boat for Iranian Military

WASHINGTON – The U.S. Commerce Department’s Bureau of Industry and Security (BIS) issued a Temporary Denial Order (TDO) yesterday evening, denying for 180 days the export privileges of  Islamic Republic of Iran Shipping Lines (IRISL) and Tadbir Sanaat Sharif Technology Development Center (TSS), both based in Tehran, Iran, and of Icarus Marine (Pty) Ltd. of Cape Town, South Africa.  The TDO was issued based upon evidence that the denied parties are about to violate the Export Administration Regulations (EAR) by re-exporting a Bladerunner 51 powerboat, the “Bradstone Challenger,” to TSS for intended use by the Iranian Revolutionary Guard Corps (“IRGC”) navy.  An IRISL vessel, the M/V “Diplomat” (a/k/a the “Iran Diplomat”), is going to be used to transport this powerboat to Iran to complete the transaction.

This high-performance powerboat has U.S.-origin engines and other components, and can reportedly reach speeds of up to 65 knots.  BIS has significant concerns that it will be used by the IRGC navy as a fast attack craft.   According to published reports, similar vessels have been armed with torpedoes, rocket launchers, and anti-ship missiles.

IRGC, IRISL and IRISL’s entire fleet, including the Diplomat, are listed as Specially Designated Nationals (SDNs) by the Department of the Treasury’s Office of Foreign Assets Control in Appendix A to 31 C.F.R. Chapter V, pursuant to Executive Order 13382.  The designation identifies those parties determined to be weapons of mass destruction proliferators and their supporters.  The unlicensed export or re-export of an item subject to the EAR to any person or vessel designated as an SDN is a violation of the EAR.

The TDO prohibits the denied parties from engaging in this re-export transaction and from directly or indirectly participating or benefitting in any way in or from any other transaction subject to the EAR.  No other person may participate in a transaction subject to the EAR with any of the denied parties.  The TDO is effective for 180 days from issuance and is subject to possible renewal.

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 and regional stability.  Criminal and administrative sanctions can be imposed for violations of the EAR.  For more information, please visit www.bis.doc.gov.

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