81 FR 3330 - Iranian Transactions and Sanctions Regulations

DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control

Federal Register Volume 81, Issue 13 (January 21, 2016)

The Department of the Treasury's Office of Foreign Assets Control (OFAC) is amending the Iranian Transactions and Sanctions Regulations (ITSR) to implement certain United States Government (USG) commitments under the Joint Comprehensive Plan of Action (JCPOA) reached on July 14, 2015 between the P5+1 (China, France, Germany, Russia, the United Kingdom, and the United States), the European Union (EU), and Iran. In particular, OFAC is adding to the ITSR general licenses authorizing the importation into the United States of, and dealings in, certain Iranian-origin foodstuffs and carpets and related transactions to implement the USG commitment set out in section 5.1.3 of Annex II and section 17.5 of Annex V of the JCPOA. In addition, to reflect the USG's implementation of its commitment set out in section 4 of Annex II and section 17.4 of Annex V of the JCPOA to terminate Executive Order 13622 of July 30, 2012, OFAC is removing regulatory provisions that implemented the blocking sanctions in sections 5 and 6 of Executive Order 13622. OFAC is also making certain technical and conforming changes to its regulations to reflect the implementation of the USG commitment set out in section 4.8.1 of Annex II and section 17.3 of Annex V of the JCPOA to remove the individuals and entities set forth in Attachment 3 to Annex II of the JCPOA from OFAC's Specially Designated Nationals and Blocked Persons List, the Foreign Sanctions Evaders List, and/or the Non-SDN Iran Sanctions Act List, as appropriate, on Implementation Day of the JCPOA.

[Federal Register Volume 81, Number 13 (Thursday, January 21, 2016)]
[Rules and Regulations]
[Pages 3330-3333]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-01227]



[[Page 3330]]

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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 560 and Appendix A to Chapter V


Iranian Transactions and Sanctions Regulations

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Final rule.

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SUMMARY: The Department of the Treasury's Office of Foreign Assets 
Control (OFAC) is amending the Iranian Transactions and Sanctions 
Regulations (ITSR) to implement certain United States Government (USG) 
commitments under the Joint Comprehensive Plan of Action (JCPOA) 
reached on July 14, 2015 between the P5+1 (China, France, Germany, 
Russia, the United Kingdom, and the United States), the European Union 
(EU), and Iran. In particular, OFAC is adding to the ITSR general 
licenses authorizing the importation into the United States of, and 
dealings in, certain Iranian-origin foodstuffs and carpets and related 
transactions to implement the USG commitment set out in section 5.1.3 
of Annex II and section 17.5 of Annex V of the JCPOA. In addition, to 
reflect the USG's implementation of its commitment set out in section 4 
of Annex II and section 17.4 of Annex V of the JCPOA to terminate 
Executive Order 13622 of July 30, 2012, OFAC is removing regulatory 
provisions that implemented the blocking sanctions in sections 5 and 6 
of Executive Order 13622. OFAC is also making certain technical and 
conforming changes to its regulations to reflect the implementation of 
the USG commitment set out in section 4.8.1 of Annex II and section 
17.3 of Annex V of the JCPOA to remove the individuals and entities set 
forth in Attachment 3 to Annex II of the JCPOA from OFAC's Specially 
Designated Nationals and Blocked Persons List, the Foreign Sanctions 
Evaders List, and/or the Non-SDN Iran Sanctions Act List, as 
appropriate, on Implementation Day of the JCPOA.

DATES: Effective: January 21, 2016

FOR FURTHER INFORMATION CONTACT: The Department of the Treasury's 
Office of Foreign Assets Control: Assistant Director for Licensing, 
tel.: 202-622-2480, Assistant Director for Regulatory Affairs, tel.: 
202-622-4855, Assistant Director for Sanctions Compliance & Evaluation, 
tel.: 202-622-2490; or the Department of the Treasury's Office of the 
Chief Counsel (Foreign Assets Control), Office of the General Counsel, 
tel.: 202-622-2410.

SUPPLEMENTARY INFORMATION:

Electronic and Facsimile Availability

    This document and additional information concerning OFAC are 
available from OFAC's Web site (www.treasury.gov/ofac). Certain general 
information pertaining to OFAC's sanctions programs also is available 
via facsimile through a 24-hour fax-on-demand service, tel.: 202-622-
0077.

Background

    On July 14, 2015, the P5+1 (China, France, Germany, Russia, the 
United Kingdom, and the United States), the European Union (EU), and 
Iran reached a Joint Comprehensive Plan of Action (JCPOA) to ensure 
that Iran's nuclear program is exclusively peaceful. The JCPOA provides 
that the United States Government (USG) will undertake the sanctions-
related commitments described in sections 17.1 to 17.4 of Annex V of 
the JCPOA once the International Atomic Energy Agency (IAEA) has 
verified that Iran has implemented key nuclear-related commitments 
described in the JCPOA. The date for this sanctions lifting is referred 
to as ``Implementation Day'' in the JCPOA. In addition, the JCPOA 
provides that, on Implementation Day, the USG will license certain 
activities involving Iran as described in section 5 of Annex II and 
section 17.5 of Annex V of the JCPOA. OFAC is now amending the Iranian 
Transactions and Sanctions Regulations, 31 CFR part 560 (ITSR), to 
implement the USG's commitment pursuant to the JCPOA to license the 
importation into the United States of Iranian-origin carpets and 
foodstuffs, including pistachios and caviar, and to make certain 
technical and conforming changes to reflect the implementation of other 
USG JCPOA commitments on Implementation Day, as set forth below.

Importation of Certain Foodstuffs and Carpets

    To implement the USG commitment set out in section 5.1.3 of Annex 
II and section 17.5 of Annex V of the JCPOA to license the importation 
into the United States of Iranian-origin carpets and foodstuffs, 
including pistachios and caviar, OFAC is adding Sec.  560.534 to the 
ITSR to authorize by general license the importation into the United 
States of, and dealings in, certain Iranian-origin foodstuffs and 
carpets from Iran or a third country. OFAC's publication of this 
general license as an amendment to the ITSR fulfills the requirements 
of section 103(d)(2)(A) of the Comprehensive Iran Sanctions, 
Accountability, and Divestment Act of 2010, as amended, (Pub. L. 111-
195) (22 U.S.C. 8501-8551) (CISADA). In addition, to fulfill the 
requirements of section 103(d)(2)(B) of CISADA, the Secretary of State 
is submitting to the appropriate congressional committees a 
certification in writing that it is in the national interest of the 
United States to provide an exception to the prohibition on the 
importation of Iranian-origin goods to the extent required to implement 
the sanctions commitment described in section 5.1.3 of Annex II of the 
JCPOA and a report describing the reasons for this exception.
    Section 560.534(a) authorizes the importation into the United 
States of Iranian-origin foodstuffs intended for human consumption that 
are classified under chapters 2-23 of the Harmonized Tariff Schedule of 
the United States (HTS). Items that are classified in chapters 2-23 of 
the HTS that are not foodstuffs intended for human consumption are not 
authorized for importation into the United States by this section. This 
section also authorizes the importation into the United States of 
Iranian-origin carpets and other textile floor coverings and carpets 
used as wall hangings that are classified under chapter 57 or heading 
9706.00.0060 of the HTS. Items that are classified under heading 
9706.00.0060 (``Antiques of an age exceeding one hundred years/Other'') 
that are not carpets and other textile wall coverings or carpets used 
as wall hangings are not authorized for importation into the United 
States by this section.
    Section 560.534(b) authorizes U.S. persons, wherever located, to 
engage in transactions or dealings in or related to such Iranian-origin 
foodstuffs and carpets, provided that such transactions or dealings do 
not involve or relate to goods, technology, or services for 
exportation, reexportation, sale, or supply, directly or indirectly, to 
Iran, the Government of Iran, an Iranian financial institution, or any 
other person whose property and interests in property are blocked 
pursuant to Sec.  560.211 of the ITSR, other than services described in 
Sec.  560.405 (``Transactions ordinarily incident to a licensed 
transaction authorized'') and transfers of funds described in Sec.  
560.516 (``Transfers of funds involving Iran''). Section 560.534(c) 
clarifies that Sec.  560.534(a)-(b) does not authorize the importation 
into the United States of goods that are under seizure or detention by 
the Department of Homeland Security, or of goods for which forfeiture 
proceedings have commenced or of goods that have been forfeited to the 
U.S. Government.

[[Page 3331]]

Section 560.534(d) clarifies that nothing in Sec.  560.534 authorizes 
the debiting or crediting of Iranian accounts, as defined in Sec.  
560.320.
    Transactions ordinarily incident to the transactions authorized in 
Sec.  560.534 and necessary to give effect thereto also are authorized 
as set forth in Sec.  560.405. OFAC is amending Sec.  560.405 by 
inserting new paragraph (f), which clarifies that the scope of 
authorized incidental transactions does not include letter of credit 
services relating to transactions authorized in Sec.  560.534. Those 
letter of credit services that are authorized are set forth separately 
in paragraphs (a) and (b) of Sec.  560.535, which OFAC is also adding 
to the ITSR. Please see Sec. Sec.  560.405(b) and 560.516 regarding 
transfers of funds in connection with licensed activities. Brokering 
services relating to transactions authorized by this final rule also 
are authorized. See Sec.  560.535(c).

Executive Order 13622

    On July 30, 2012, the President, invoking the authority of, inter 
alia, the International Emergency Economic Powers Act (50 U.S.C. 1701 
et seq.) (IEEPA), issued Executive Order (E.O.) 13622. Section 5 of 
E.O. 13622 blocked ``all property and interests in property that are in 
the United States, that hereafter come within the United States, or 
that are or hereafter come within the possession or control of'' any 
U.S. person, including any foreign branch, of any person determined by 
the Secretary of the Treasury, in consultation with the Secretary of 
State, to have materially assisted, sponsored, or provided financial, 
material, or technological support for, or goods or services in support 
of, the National Iranian Oil Company (NIOC), the Naftiran Intertrade 
Company (NICO), or the Central Bank of Iran, or the purchase or 
acquisition of U.S. bank notes or precious metals by the Government of 
Iran. Section 6 of E.O. 13622 provided that subsection 5(a) of E.O. 
13622, among other specified provisions, shall not apply with respect 
to any person for conducting or facilitating a transaction involving a 
natural gas development and pipeline project initiated prior to July 
31, 2012, to bring gas from Azerbaijan to Europe and Turkey in 
furtherance of a production sharing agreement or license awarded by a 
sovereign government other than the Government of Iran. On December 26, 
2012, OFAC published a final rule in the Federal Register (77 FR 75845) 
that, inter alia, implemented sections 5 and 6 of E.O. 13622 by 
amending Sec.  560.211 of the ITSR to add paragraph (c)(2) and a 
corresponding note.
    Pursuant to its Implementation Day commitment set out in section 4 
of Annex II and section 17.4 of Annex V of the JCPOA, the United States 
Government has revoked E.O. 13622. Accordingly, OFAC is amending Sec.  
560.211 of the ITSR by removing paragraph (c)(2) and the Note to 
paragraph (c)(2), which implemented sections 5 and 6 of E.O. 13622, 
respectively.

Technical and Conforming Changes

    OFAC is also making certain technical and conforming changes to 31 
CFR chapter V to reflect the implementation of the USG commitment set 
out in section 4.8.1 of Annex II and section 17.3 of Annex V of the 
JCPOA. Pursuant to that commitment, on Implementation Day, OFAC is 
removing individuals and entities identified in Attachment 3 to Annex 
II of the JCPOA from the Specially Designated Nationals and Blocked 
Persons List (SDN List), the Foreign Sanctions Evaders List, and/or the 
Non-SDN Iran Sanctions Act List, as appropriate. The individuals and 
entities being removed from the SDN List include persons that OFAC has 
previously identified as blocked pursuant to E.O. 13599 of February 5, 
2012 (``Blocking Property of the Government Iran and Iranian Financial 
Institutions'') because they meet the definition of the terms 
``Government of Iran'' or ``Iranian financial institution.'' These 
individuals and entities are marked with an asterisk in Attachment 3 to 
Annex II of the JCPOA. Non-U.S. persons will no longer be subject to 
secondary sanctions, including under relevant provisions of the Iran 
Freedom and Counter-Proliferation Act of 2012 and other applicable 
authorities, for engaging in transactions or activities with these 
individuals and entities, provided that the transactions do not include 
conduct that remains sanctionable or individuals or entities that 
remain on the SDN List. However, these individuals and entities being 
removed from the SDN List remain persons whose property and interests 
in property that are in the U.S., or that are or come within the 
possession or control of any U.S. person, are blocked pursuant to E.O. 
13599. While OFAC is removing these persons from the SDN List on 
Implementation Day, they will now be included on a ``List of Persons 
Identified as Blocked Solely Pursuant to Executive Order 13599'' (E.O. 
13599 List), which OFAC is making available on its Web site: 
www.treasury.gov/resource-center/sanctions/Programs/Pages/13599_list.aspx. To reflect these changes, OFAC is revising notes in 
Sec. Sec.  560.211 and 560.304 of the ITSR, adding a new note to Sec.  
560.324 of the ITSR, and revising a note to appendix A to 31 CFR 
chapter V.

Public Participation

    Because the amendment of the ITSR involves a foreign affairs 
function, the provisions of Executive Order 12866 and the 
Administrative Procedure Act (5 U.S.C. 553) requiring notice of 
proposed rulemaking, opportunity for public participation, and delay in 
effective date are inapplicable. Because no notice of proposed 
rulemaking is required for this rule, the Regulatory Flexibility Act (5 
U.S.C. 601-612) does not apply.

Paperwork Reduction Act

    The collections of information related to the ITSR are contained in 
31 CFR part 501 (the ``Reporting, Procedures and Penalties 
Regulations''). Pursuant to the Paperwork Reduction Act of 1995 (44 
U.S.C. 3507), those collections of information have been approved by 
the Office of Management and Budget under control number 1505-0164. An 
agency may not conduct or sponsor, and a person is not required to 
respond to, a collection of information unless the collection of 
information displays a valid control number.

List of Subjects in 31 CFR Part 560 and Appendix A to Chapter V

    Administrative practice and procedure, Banks, Banking, Carpet, 
Foodstuffs, Iran, Letters of credit.

    For the reasons set forth in the preamble, the Department of the 
Treasury's Office of Foreign Assets Control amends 31 CFR chapter V as 
follows:

PART 560--IRANIAN TRANSACTIONS AND SANCTIONS REGULATIONS

0
1. The authority citation for part 560 is revised to read as follows:

    Authority:  3 U.S.C. 301; 18 U.S.C. 2339B, 2332d; 22 U.S.C. 
2349aa-9; 22 U.S.C. 7201-7211; 31 U.S.C. 321(b); 50 U.S.C. 1601-
1651, 1701-1706; Public Law 101-410, 104 Stat. 890 (28 U.S.C. 2461 
note); Public Law 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); 
Public Law 111-195, 124 Stat. 1312 (22 U.S.C. 8501-8551); Public Law 
112-81, 125 Stat. 1298 (22 U.S.C. 8513a); Public Law 112-158, 126 
Stat. 1214 (22 U.S.C. 8701-8795); E.O. 12613, 52 FR 41940, 3 CFR, 
1987 Comp., p. 256; E.O. 12957, 60 FR 14615, 3 CFR, 1995 Comp., p. 
332; E.O. 12959, 60 FR 24757, 3 CFR, 1995 Comp., p. 356; E.O. 13059, 
62 FR 44531, 3 CFR, 1997 Comp., p. 217; E.O. 13599, 77 FR 6659, 3 
CFR, 2012 Comp., p. 215; E.O. 13628, 77 FR 62139, 3 CFR, 2012 Comp., 
p. 314.

[[Page 3332]]

Subpart B--Prohibitions

0
2. Amend Sec.  560.211 by removing the word ``or'' from the end of 
paragraph (c)(1), removing and reserving paragraph (c)(2), removing the 
note to paragraph (c)(2), and revising notes 1 and 2 to paragraphs (a) 
through (c) to read as follows:


Sec.  560.211  Prohibited transactions involving blocked property.

* * * * *

    Note 1 to paragraphs (a) through (c) of Sec.  560.211:  The 
names of persons identified by the Office of Foreign Assets Control 
(OFAC) as blocked solely pursuant to Executive Order 13599 of 
February 5, 2012 (``Blocking Property of the Government Iran and 
Iranian Financial Institutions'') (E.O. 13599) because they meet the 
definition of the terms ``Government of Iran'' or ``Iranian 
financial institution,'' whose property and interests in property 
therefore are blocked pursuant to this section, are published in the 
Federal Register and incorporated into the ``List of Persons 
Identified as Blocked Solely Pursuant to Executive Order 13599'') 
(E.O. 13599 List). The E.O. 13599 List is accessible through the 
following page on OFAC's Web site: www.treasury.gov/resource-center/sanctions/Programs/Pages/13599_list.aspx. The names of persons 
identified as blocked or designated for blocking pursuant to both 
this part and one or more other parts of this chapter are published 
in the Federal Register and incorporated into OFAC's Specially 
Designated Nationals and Blocked Persons List (SDN List) with the 
identifier ``[IRAN]'' as well as the relevant identifier(s) for the 
other sanctions program(s) pursuant to which the persons' property 
and interests in property are blocked. The SDN List is accessible 
through the following page on OFAC's Web site: www.treasury.gov/sdn. 
Additional information pertaining to the E.O. 13599 List and the SDN 
List can be found in appendix A to this chapter. See Sec.  560.425 
concerning entities that may not be listed on the E.O. 13599 List or 
on the SDN List but whose property and interests in property are 
nevertheless blocked pursuant to this section. E.O. 13599 blocks the 
property and interests in property of the Government of Iran and 
Iranian financial institutions as defined in Sec. Sec.  560.304 and 
560.324, respectively. The property and interests in property of 
persons falling within the definition of the terms Government of 
Iran and Iranian financial institution are blocked pursuant to this 
section regardless of whether the names of such persons are 
published in the Federal Register or incorporated into the E.O. 
13599 List or the SDN List.


    Note 2 to paragraphs (a) through (c) of Sec.  560.211: The 
International Emergency Economic Powers Act (50 U.S.C. 1701-1706), 
in section 203 (50 U.S.C. 1702), authorizes the blocking of property 
and interests in property of a person during the pendency of an 
investigation. The names of persons whose property and interests in 
property are blocked pending investigation pursuant to this section 
also are published in the Federal Register and incorporated into the 
E.O. 13599 List or the SDN List, as appropriate, with the identifier 
``[BPI-IRAN].''

* * * * *

Subpart C--General Definitions

0
3. Amend Sec.  560.304 by revising Note 1 to Sec.  560.304 to read as 
follows:


Sec.  560.304  Government of Iran.

* * * * *

    Note 1 to Sec.  560.304: The names of persons that the Office of 
Foreign Assets Control (OFAC) has determined fall within this 
definition are published in the Federal Register and incorporated 
into one of two lists maintained by OFAC. First, the names of 
persons identified as blocked solely pursuant to Executive Order 
13599 of February 5, 2012 (``Blocking Property of the Government 
Iran and Iranian Financial Institutions'') (E.O. 13599) and Sec.  
560.211 because they meet the definition of the term ``Government of 
Iran'' are incorporated into the ``List of Persons Identified as 
Blocked Solely Pursuant to Executive Order 13599'') (E.O. 13599 
List). The E.O. 13599 List is accessible through the following page 
on OFAC's Web site: www.treasury.gov/resource-center/sanctions/Programs/Pages/13599_list.aspx. Second, the names of persons 
identified as blocked pursuant to E.O. 13599 and Sec.  560.211 who 
are also blocked pursuant to one or more other parts of this chapter 
are incorporated into OFAC's Specially Designated Nationals and 
Blocked Persons List (SDN List) with the identifier ``[IRAN]'' as 
well as the relevant identifier(s) for the other sanctions 
program(s) pursuant to which the persons' property and interests in 
property are blocked. The SDN List is accessible through the 
following page on the OFAC's Web site: www.treasury.gov/sdn. 
However, the property and interests in property of persons falling 
within the definition of the term Government of Iran are blocked 
pursuant to Sec.  560.211 regardless of whether the names of such 
persons are published in the Federal Register or incorporated into 
the E.O. 13599 List or the SDN List.

* * * * *

0
4. Section 560.324 is amended by adding Notes 1 and 2 to Sec.  560.324 
to read as follows:


Sec.  560.324  Iranian financial institution.

* * * * *

    Note 1 to Sec.  560.324: The names of persons that the Office of 
Foreign Assets Control (OFAC) has determined fall within this 
definition are published in the Federal Register and incorporated 
into one of two lists maintained by the OFAC. First, the names of 
persons identified as blocked solely pursuant to Executive Order 
13599 of February 5, 2012 (``Blocking Property of the Government 
Iran and Iranian Financial Institutions'') (E.O. 13599) and Sec.  
560.211 because they meet the definition of the term ``Iranian 
financial institution'' are incorporated into the ``List of Persons 
Identified as Blocked Solely Pursuant to Executive Order 13599'') 
(E.O. 13599 List). The E.O. 13599 List is accessible through the 
following page on OFAC's Web site: www.treasury.gov/resource-center/sanctions/Programs/Pages/13599_list.aspx. Second, the names of 
persons identified as blocked pursuant to E.O. 13599 and Sec.  
560.211 who are also blocked pursuant to one or more other parts of 
this chapter are incorporated into OFAC's Specially Designated 
Nationals and Blocked Persons List (SDN List) with the identifier 
``[IRAN]'' as well as the relevant identifier(s) for the other 
sanctions program(s) pursuant to which the persons' property and 
interests in property are blocked. The SDN List is accessible 
through the following page on OFAC's Web site: www.treasury.gov/sdn. 
However, the property and interests in property of persons falling 
within the definition of the term Iranian financial institution are 
blocked pursuant to Sec.  560.211 regardless of whether the names of 
such persons are published in the Federal Register or incorporated 
into the E.O. 13599 List or the SDN List.


    Note 2 to Sec.  560.324: Section 501.807 of this chapter 
describes the procedures to be followed by persons seeking 
administrative reconsideration of OFAC's determination that they 
fall within the definition of the term Iranian financial 
institution.

Subpart D--Interpretations

0
5. Amend Sec.  560.405 by removing the word ``and'' at the end of 
paragraph (d), removing the period at the end of paragraph (e) and 
adding ``; and'' in its place, and adding paragraph (f) to read as 
follows:


Sec.  560.405  Transactions ordinarily incident to a licensed 
transaction authorized.

* * * * *
    (f) Letter of credit services relating to transactions authorized 
in Sec.  560.534. See Sec.  560.535(a).

Subpart E--Licenses, Authorizations, and Statements of Licensing 
Policy

0
6. Add Sec.  560.534 to subpart E to read as follows:


Sec.  560.534  Importation into the United States of, and dealings in, 
certain foodstuffs and carpets authorized.

    (a) The importation into the United States, from Iran or a third 
country, of the following goods of Iranian origin is authorized:
    (1) Foodstuffs intended for human consumption that are classified 
under chapters 2-23 of the Harmonized Tariff Schedule of the United 
States;
    (2) Carpets and other textile floor coverings and carpets used as 
wall hangings that are classified under chapter 57 or heading 
9706.00.0060 of the Harmonized Tariff Schedule of the United States.

[[Page 3333]]

    (b) United States persons, wherever located, are authorized to 
engage in transactions or dealings in or related to the categories of 
Iranian-origin goods described in paragraph (a) of this section, 
provided that the transaction or dealing does not involve or relate to 
goods, technology, or services for exportation, reexportation, sale, or 
supply, directly or indirectly, to Iran, the Government of Iran, an 
Iranian financial institution, or any other person whose property and 
interests in property are blocked pursuant to Sec.  560.211, other than 
services described in Sec.  560.405 (``Transactions ordinarily incident 
to a licensed transaction authorized'') and transfers of funds 
described in Sec.  560.516 (``Transfers of funds involving Iran'').
    (c) This general license does not authorize the importation into 
the United States of goods that are under seizure or detention by the 
Department of Homeland Security, as of January 21, 2016, pursuant to 
Customs regulations or other applicable provisions of law, until any 
applicable penalties, charges, duties, or other conditions are 
satisfied. This general license does not authorize the importation into 
the United States of goods for which forfeiture proceedings have 
commenced or of goods that have been forfeited to the U.S. Government, 
other than through U.S. Customs and Border Protection disposition, 
including by selling at auction.
    (d) Iranian accounts. Nothing in this section authorizes debits or 
credits to Iranian accounts, as defined in Sec.  560.320.

0
7. Add Sec.  560.535 to subpart E to read as follows:


Sec.  560.535  Letters of credit and brokering services relating to 
certain foodstuffs and carpets.

    (a) Purchases from Iran or the Government of Iran or certain other 
blocked persons. United States depository institutions are authorized 
to issue letters of credit in favor of a beneficiary in Iran, the 
Government of Iran, an Iranian financial institution, or any other 
person whose property and interests in property are blocked pursuant to 
Sec.  560.211 to pay for purchases from Iran or the Government of Iran 
of the categories of Iranian-origin goods described in Sec.  
560.534(a), provided that such letters of credit are not advised, 
negotiated, paid, or confirmed by the Government of Iran, an Iranian 
financial institution, or any other person whose property and interests 
in property are blocked pursuant to Sec.  560.211.
    (b) Transactions or dealings in Iranian-origin goods located in 
third countries, other than purchases from the Government of Iran or 
certain other blocked persons. United States depository institutions 
are authorized to issue, advise, negotiate, or confirm letters of 
credit to pay for transactions in or related to Iranian-origin goods 
described in Sec.  560.534(a) and located in a third-country, other 
than purchases from the Government of Iran, an Iranian financial 
institution, or any other person whose property and interests in 
property are blocked pursuant to Sec.  560.211, provided that such 
letters of credit are not issued, advised, negotiated, paid, or 
confirmed by the Government of Iran, an Iranian financial institution, 
or any other person whose property and interests in property are 
blocked pursuant to Sec.  560.211.
    (c) Brokering. United States persons, wherever located, are 
authorized to act as brokers for the purchase or sale of the categories 
of Iranian-origin goods described in Sec.  560.534(a), provided that 
the goods are not for exportation, reexportation, sale, or supply, 
directly or indirectly, to Iran, the Government of Iran, an Iranian 
financial institution, or any other person whose property and interests 
in property are blocked pursuant to Sec.  560.211.
    (d) Iranian accounts. Nothing in this section authorizes debits or 
credits to Iranian accounts, as defined in Sec.  560.320.

    Note to Sec.  560.535: See Sec. Sec.  560.304 and 560.313 for 
information relating to individuals and entities that are included 
within the definition of the term Government of Iran and Sec.  
560.324 regarding entities included within the definition of the 
term Iranian financial institution. See Sec.  560.516 for 
information relating to authorized transfers to Iran by U.S. 
depository institutions relating to licensed transactions.

Appendix A to Chapter V--[Amended]

0
8. The authority citation for appendix A to chapter V is revised to 
read as follows:

    Authority: 3 U.S.C. 301; 8 U.S.C. 1182, 1189; 18 U.S.C. 2339 B; 
21 U.S.C. 1901-1908; 22 U.S.C. 287 c; 31 U.S.C. 321(b); 50 U.S.C. 
App. 1-44; Public Law 110-286, 122 Stat. 2632 (50 U.S.C. 1701 note); 
Public Law 111-195, 124 Stat. 1312 (22 U.S.C. 8501-8551); Public Law 
112-81, 125 Stat. 1298 (22 U.S.C. 8513a); Public Law 112-158, 126 
Stat. 1214 (22 U.S.C. 8701-8795); Public Law 112-208, 126 Stat. 
1502; Public Law 113-278, 128 Stat. 3011 (50 U.S.C. 1701 note).

0
9. Revise note 8 to appendix A to chapter V to read as follows:

Appendix A to Chapter V--Information Pertaining to the Specially 
Designated Nationals and Blocked Persons List

* * * * *

    8. The SDN List includes the names of persons determined to be 
the Government of Iran, an Iranian financial institution, or any 
other person whose property and interests in property are blocked 
pursuant to Sec.  560.211 of the Iranian Transactions and Sanctions 
Regulations, 31 CFR part 560 (ITSR), only when the property and 
interests in property of such persons are also blocked pursuant to 
one or more other parts of this chapter. The SDN List entries for 
such persons include the identifier ``[IRAN]'' as well as the 
relevant identifier(s) for the other sanctions program(s) pursuant 
to which the persons' property and interests in property are 
blocked. The names of persons identified as blocked solely pursuant 
to Executive Order 13599 of February 5, 2012 (``Blocking Property of 
the Government Iran and Iranian Financial Institutions'') (E.O. 
13599) and Sec.  560.211 of the ITSR because they meet the 
definition of the terms Government of Iran or Iranian financial 
institution under the ITSR are incorporated into the ``List of 
Persons Identified as Blocked Solely Pursuant to Executive Order 
13599'' (E.O. 13599 List). The E.O. 13599 List is accessible through 
the following page on the Office of Foreign Assets Control's Web 
site: www.treasury.gov/resource-center/sanctions/Programs/Pages/13599_list.aspx. U.S. persons are advised to review 31 CFR part 560 
prior to engaging in transactions involving persons included on the 
E.O. 13599 List or the SDN List with the identifier ``[IRAN].'' 
Moreover, the prohibitions set forth in the ITSR, and the compliance 
obligations, with respect to persons who fall within the definition 
of the terms Government of Iran or Iranian financial institution set 
forth in Sec. Sec.  560.304 and 560.324 of the ITSR, respectively, 
apply regardless of whether such persons are identified on the E.O. 
13599 List or the SDN List.
* * * * *


John E. Smith,
Acting Director, Office of Foreign Assets Control.
[FR Doc. 2016-01227 Filed 1-19-16; 4:15 pm]
BILLING CODE 4810-AL-P