Where Industry and Security Intersect
What's New | Sitemap | Search
Q: Why is BIS publishing a new Iran regulation?
This rule revises and clarifies the Export Administration Regulations (EAR) provisions that apply specifically to Iran in order to promote consistency, reduce redundancy, and clarify the role of the Bureau of Industry and Security (BIS) in connection with the implementation of United States export control policy towards Iran.
Q: What does the January 15 rule do with respect to the EAR provisions relating to Iran?
The rule makes several clarifications and amendments to Sections 742.8 and 746.7 of the EAR, the two sections relating specifically to Iran. In particular, BIS is imposing a new license requirement for the reexport of items classified under ten Export Control Classification Numbers (ECCNs): 2A994; 3A992.a; 5A991.g; 5A992; 6A991; 6A998; 7A994; 8A992.d, .e, .f, and .g; 9A990.a and .b; and 9A991.d and .e. These items previously required a license for export to Iran and continue to do so. These amendments also make items controlled under these ECCNs or ECCN subparagraphs “controlled U.S. content” for purposes of calculating whether a foreign-made item contains more than a de minimis amount of controlled U.S. content, as described in part 734 of the EAR. As a result of the change, it is likely that certain foreign-made items that were previously not subject to the EAR are now subject to the EAR when being reexported to Iran.
The rule also makes several additional modifications to Sections 742.8 and 746.7, intended to clarify the application of these provisions and ensure that exporters and reexporters are aware of the applicable licensing requirements and the appropriate agency from which to seek authorization for a particular transaction. In most cases, dealings with Iran will continue to require authorization from the Department of the Treasury’s Office of Foreign Assets Control (OFAC), as described in the Iranian Transactions Regulations (31 C.F.R. Part 560) and OFAC’s website at: http://www.treas.gov/offices/enforcement/ofac/programs/iran/iran.shtml.
Q: Where do I apply for a license if I want to export or reexport to Iran?
OFAC remains the primary licensing agency for exports and reexports to Iran, including items listed on the Commerce Control List. If OFAC authorizes an export or reexport, such authorization is considered sufficient for purposes of the EAR as well and a BIS license would not be necessary.
Q: What is the BIS licensing policy for exports and reexports to Iran?
As stated above, OFAC remains the primary licensing agency for exports and reexports of U.S.-origin items to Iran. For transactions that fall outside of OFAC jurisdiction, but which require a license under the EAR, the licensing policy in the EAR will be used in reviewing license applications. The EAR state a general policy of denial for most applications other than applications for humanitarian transactions or for transactions related to the safety of civil aviation and safe operation of U.S. origin aircraft. Notably, under the EAR, no license exceptions may be used for exports or reexports to Iran.
Q: What new licensing requirements are imposed on parties designated in or pursuant to Executive Order 13382 dealing with proliferators of weapons of mass destruction?
The BIS January 15 rule also adds a new Section 744.8 to the EAR, imposing a license requirement on exports and reexports to parties designated in or pursuant to Executive Order 13382 as proliferators of weapons of mass destruction or as supporters of such proliferators, and listed by OFAC in 31 CFR Chapter V, Appendix A with the bracketed suffix [NPWMD]. This change complements OFAC’s regulatory authority under E.O. 13382. The BIS license requirements in Section 744.8 do not apply to exports, reexports, or transfers of agricultural commodities, or medicine and medical devices designated EAR99.
As is the case for most transactions involving Iran, for transactions involving parties designated in or pursuant to E.O. 13382 requiring authorization from both OFAC and BIS, authorization from OFAC will serve to satisfy EAR license requirements under Section 744.8 of the EAR.
Q: Where is the list of persons designated in or pursuant to Executive Order 13382 located?
The list of persons designated in or pursuant to Executive Order 13382 is maintained by the Department of the Treasury’s Office of Foreign Assets Control (OFAC) and is available on OFAC’s website. Such persons are identified with the reference [NPWMD] in 31 CFR Chapter V, Appendix A and on OFAC’s list of Specially Designated Nationals and Blocked Persons available at: http://www.treas.gov/offices/enforcement/ofac/sdn/index.shtml
Q: Which agency do I contact for permission to deal with persons designated in or pursuant to Executive Order 13382?
The Department of the Treasury’s Office of Foreign Assets Control (OFAC) is the primary licensing agency for dealings with persons designated in or pursuant to Executive Order 13382. For transactions subject to both the EAR and OFAC’s regulatory authority under E.O. 13382, if OFAC authorizes an export, reexport, or transfer involving an entity designated in or pursuant to E.O. 13382, no separate authorization from BIS is necessary.
Q: What is BIS’s license review policy for exports, reexports, or transfers to persons designated in or pursuant to Executive Order 13382?
OFAC is the primary licensing agency for most exports, reexports, or transfers to persons designated in or pursuant to Executive Order 13382. However, there are some license applications that must be submitted to BIS under the EAR, including applications for reexports of U.S.-origin items by non-U.S. persons to persons designated in or pursuant to E.O. 13382. All applications submitted to BIS for the export, reexport, or transfer of any item subject to the EAR (except agricultural commodities, or medicine and medical devices designated EAR99) involving entities designated in or pursuant to Executive Order 13382 will generally be denied.
Q: Are there any License Exceptions available for these transactions?
No, License Exceptions are not available for exports, reexports, or transfers of items subject to the EAR involving persons designated in or pursuant to Executive Order 13382.
Last Updated 2/18/09