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)
Office of Foreign Assets Control
Federal Register Volume 81, Issue 13 (January 21, 2016)
| Page Range | 3330-3333 | |
| FR Document | 2016-01227 |
[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]] ----------------------------------------------------------------------- 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. ----------------------------------------------------------------------- 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
![3332 Federal Register / Vol. 81, No. 13 / Thursday, January 21, 2016 / Rules and Regulations
Subpart B—Prohibitions Register and incorporated into the E.O. Identified as Blocked Solely Pursuant to
13599 List or the SDN List, as appropriate, Executive Order 13599’’) (E.O. 13599 List).
■ 2. Amend § 560.211 by removing the with the identifier ‘‘[BPI–IRAN].’’ The E.O. 13599 List is accessible through the
word ‘‘or’’ from the end of paragraph following page on OFAC’s Web site:
* * * * * www.treasury.gov/resource-center/sanctions/
(c)(1), removing and reserving paragraph
Programs/Pages/13599_list.aspx. Second, the
(c)(2), removing the note to paragraph Subpart C—General Definitions names of persons identified as blocked
(c)(2), and revising notes 1 and 2 to pursuant to E.O. 13599 and § 560.211 who
paragraphs (a) through (c) to read as ■ 3. Amend § 560.304 by revising Note are also blocked pursuant to one or more
follows: 1 to § 560.304 to read as follows: other parts of this chapter are incorporated
into OFAC’s Specially Designated Nationals
§ 560.211 Prohibited transactions § 560.304 Government of Iran.
and Blocked Persons List (SDN List) with the
involving blocked property. * * * * * identifier ‘‘[IRAN]’’ as well as the relevant
* * * * * Note 1 to § 560.304: The names of persons identifier(s) for the other sanctions
Note 1 to paragraphs (a) through (c) of that the Office of Foreign Assets Control program(s) pursuant to which the persons’
§ 560.211: The names of persons identified (OFAC) has determined fall within this property and interests in property are
by the Office of Foreign Assets Control definition are published in the Federal blocked. The SDN List is accessible through
(OFAC) as blocked solely pursuant to Register and incorporated into one of two the following page on OFAC’s Web site:
Executive Order 13599 of February 5, 2012 lists maintained by OFAC. First, the names www.treasury.gov/sdn. However, the
(‘‘Blocking Property of the Government Iran of persons identified as blocked solely property and interests in property of persons
and Iranian Financial Institutions’’) (E.O. pursuant to Executive Order 13599 of falling within the definition of the term
13599) because they meet the definition of February 5, 2012 (‘‘Blocking Property of the Iranian financial institution are blocked
the terms ‘‘Government of Iran’’ or ‘‘Iranian Government Iran and Iranian Financial pursuant to § 560.211 regardless of whether
financial institution,’’ whose property and Institutions’’) (E.O. 13599) and § 560.211 the names of such persons are published in
interests in property therefore are blocked because they meet the definition of the term the Federal Register or incorporated into the
pursuant to this section, are published in the ‘‘Government of Iran’’ are incorporated into E.O. 13599 List or the SDN List.
Federal Register and incorporated into the the ‘‘List of Persons Identified as Blocked
‘‘List of Persons Identified as Blocked Solely Solely Pursuant to Executive Order 13599’’) Note 2 to § 560.324: Section 501.807 of this
Pursuant to Executive Order 13599’’) (E.O. (E.O. 13599 List). The E.O. 13599 List is chapter describes the procedures to be
13599 List). The E.O. 13599 List is accessible accessible through the following page on followed by persons seeking administrative
through the following page on OFAC’s Web OFAC’s Web site: www.treasury.gov/ reconsideration of OFAC’s determination that
site: www.treasury.gov/resource-center/ resource-center/sanctions/Programs/Pages/ they fall within the definition of the term
sanctions/Programs/Pages/13599_list.aspx. 13599_list.aspx. Second, the names of Iranian financial institution.
The names of persons identified as blocked persons identified as blocked pursuant to
or designated for blocking pursuant to both E.O. 13599 and § 560.211 who are also Subpart D—Interpretations
this part and one or more other parts of this blocked pursuant to one or more other parts
chapter are published in the Federal Register of this chapter are incorporated into OFAC’s ■ 5. Amend § 560.405 by removing the
and incorporated into OFAC’s Specially Specially Designated Nationals and Blocked word ‘‘and’’ at the end of paragraph (d),
Designated Nationals and Blocked Persons Persons List (SDN List) with the identifier
‘‘[IRAN]’’ as well as the relevant identifier(s)
removing the period at the end of
List (SDN List) with the identifier ‘‘[IRAN]’’
as well as the relevant identifier(s) for the for the other sanctions program(s) pursuant paragraph (e) and adding ‘‘; and’’ in its
other sanctions program(s) pursuant to which to which the persons’ property and interests place, and adding paragraph (f) to read
the persons’ property and interests in in property are blocked. The SDN List is as follows:
property are blocked. The SDN List is accessible through the following page on the
accessible through the following page on OFAC’s Web site: www.treasury.gov/sdn. § 560.405 Transactions ordinarily incident
OFAC’s Web site: www.treasury.gov/sdn. However, the property and interests in to a licensed transaction authorized.
Additional information pertaining to the E.O. property of persons falling within the * * * * *
13599 List and the SDN List can be found in definition of the term Government of Iran are (f) Letter of credit services relating to
appendix A to this chapter. See § 560.425 blocked pursuant to § 560.211 regardless of transactions authorized in § 560.534.
concerning entities that may not be listed on whether the names of such persons are See § 560.535(a).
the E.O. 13599 List or on the SDN List but published in the Federal Register or
whose property and interests in property are incorporated into the E.O. 13599 List or the Subpart E—Licenses, Authorizations,
nevertheless blocked pursuant to this section. SDN List. and Statements of Licensing Policy
E.O. 13599 blocks the property and interests
in property of the Government of Iran and * * * * *
■ 6. Add § 560.534 to subpart E to read
Iranian financial institutions as defined in ■ 4. Section 560.324 is amended by
§§ 560.304 and 560.324, respectively. The
as follows:
adding Notes 1 and 2 to § 560.324 to
property and interests in property of persons read as follows: § 560.534 Importation into the United
falling within the definition of the terms States of, and dealings in, certain
Government of Iran and Iranian financial § 560.324 Iranian financial institution. foodstuffs and carpets authorized.
institution are blocked pursuant to this
* * * * * (a) The importation into the United
section regardless of whether the names of
such persons are published in the Federal Note 1 to § 560.324: The names of persons States, from Iran or a third country, of
Register or incorporated into the E.O. 13599 that the Office of Foreign Assets Control the following goods of Iranian origin is
List or the SDN List. (OFAC) has determined fall within this authorized:
definition are published in the Federal (1) Foodstuffs intended for human
Note 2 to paragraphs (a) through (c) of Register and incorporated into one of two consumption that are classified under
§ 560.211: The International Emergency lists maintained by the OFAC. First, the chapters 2–23 of the Harmonized Tariff
jstallworth on DSK7TPTVN1PROD with RULES
Economic Powers Act (50 U.S.C. 1701–1706), names of persons identified as blocked solely Schedule of the United States;
in section 203 (50 U.S.C. 1702), authorizes pursuant to Executive Order 13599 of
(2) Carpets and other textile floor
the blocking of property and interests in February 5, 2012 (‘‘Blocking Property of the
property of a person during the pendency of Government Iran and Iranian Financial coverings and carpets used as wall
an investigation. The names of persons Institutions’’) (E.O. 13599) and § 560.211 hangings that are classified under
whose property and interests in property are because they meet the definition of the term chapter 57 or heading 9706.00.0060 of
blocked pending investigation pursuant to ‘‘Iranian financial institution’’ are the Harmonized Tariff Schedule of the
this section also are published in the Federal incorporated into the ‘‘List of Persons United States.
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![Federal Register / Vol. 81, No. 13 / Thursday, January 21, 2016 / Rules and Regulations 3333
(b) United States persons, wherever countries, other than purchases from 8. The SDN List includes the names of
located, are authorized to engage in the Government of Iran or certain other persons determined to be the Government of
transactions or dealings in or related to blocked persons. United States Iran, an Iranian financial institution, or any
other person whose property and interests in
the categories of Iranian-origin goods depository institutions are authorized to
property are blocked pursuant to § 560.211 of
described in paragraph (a) of this issue, advise, negotiate, or confirm the Iranian Transactions and Sanctions
section, provided that the transaction or letters of credit to pay for transactions Regulations, 31 CFR part 560 (ITSR), only
dealing does not involve or relate to in or related to Iranian-origin goods when the property and interests in property
goods, technology, or services for described in § 560.534(a) and located in of such persons are also blocked pursuant to
exportation, reexportation, sale, or a third-country, other than purchases one or more other parts of this chapter. The
supply, directly or indirectly, to Iran, from the Government of Iran, an Iranian SDN List entries for such persons include the
the Government of Iran, an Iranian financial institution, or any other person identifier ‘‘[IRAN]’’ as well as the relevant
financial institution, or any other person identifier(s) for the other sanctions
whose property and interests in
program(s) pursuant to which the persons’
whose property and interests in property are blocked pursuant to property and interests in property are
property are blocked pursuant to § 560.211, provided that such letters of blocked. The names of persons identified as
§ 560.211, other than services described credit are not issued, advised, blocked solely pursuant to Executive Order
in § 560.405 (‘‘Transactions ordinarily negotiated, paid, or confirmed by the 13599 of February 5, 2012 (‘‘Blocking
incident to a licensed transaction Government of Iran, an Iranian financial Property of the Government Iran and Iranian
authorized’’) and transfers of funds institution, or any other person whose Financial Institutions’’) (E.O. 13599) and
described in § 560.516 (‘‘Transfers of property and interests in property are § 560.211 of the ITSR because they meet the
funds involving Iran’’). blocked pursuant to § 560.211. definition of the terms Government of Iran or
(c) This general license does not (c) Brokering. United States persons, Iranian financial institution under the ITSR
authorize the importation into the are incorporated into the ‘‘List of Persons
wherever located, are authorized to act Identified as Blocked Solely Pursuant to
United States of goods that are under as brokers for the purchase or sale of the Executive Order 13599’’ (E.O. 13599 List).
seizure or detention by the Department categories of Iranian-origin goods The E.O. 13599 List is accessible through the
of Homeland Security, as of January 21, described in § 560.534(a), provided that following page on the Office of Foreign
2016, pursuant to Customs regulations the goods are not for exportation, Assets Control’s Web site: www.treasury.gov/
or other applicable provisions of law, reexportation, sale, or supply, directly resource-center/sanctions/Programs/Pages/
until any applicable penalties, charges, or indirectly, to Iran, the Government of 13599_list.aspx. U.S. persons are advised to
duties, or other conditions are satisfied. Iran, an Iranian financial institution, or review 31 CFR part 560 prior to engaging in
This general license does not authorize any other person whose property and transactions involving persons included on
the importation into the United States of the E.O. 13599 List or the SDN List with the
interests in property are blocked identifier ‘‘[IRAN].’’ Moreover, the
goods for which forfeiture proceedings pursuant to § 560.211. prohibitions set forth in the ITSR, and the
have commenced or of goods that have (d) Iranian accounts. Nothing in this compliance obligations, with respect to
been forfeited to the U.S. Government, section authorizes debits or credits to persons who fall within the definition of the
other than through U.S. Customs and Iranian accounts, as defined in terms Government of Iran or Iranian
Border Protection disposition, including § 560.320. financial institution set forth in §§ 560.304
by selling at auction. and 560.324 of the ITSR, respectively, apply
Note to § 560.535: See §§ 560.304 and
(d) Iranian accounts. Nothing in this regardless of whether such persons are
560.313 for information relating to
section authorizes debits or credits to identified on the E.O. 13599 List or the SDN
individuals and entities that are included
Iranian accounts, as defined in List.
within the definition of the term Government
§ 560.320. of Iran and § 560.324 regarding entities * * * * *
■ 7. Add § 560.535 to subpart E to read included within the definition of the term
as follows: Iranian financial institution. See § 560.516 John E. Smith,
for information relating to authorized Acting Director, Office of Foreign Assets
§ 560.535 Letters of credit and brokering transfers to Iran by U.S. depository Control.
services relating to certain foodstuffs and institutions relating to licensed transactions. [FR Doc. 2016–01227 Filed 1–19–16; 4:15 pm]
carpets.
BILLING CODE 4810–AL–P
(a) Purchases from Iran or the Appendix A to Chapter V—[Amended]
Government of Iran or certain other
■ 8. The authority citation for appendix
blocked persons. United States
A to chapter V is revised to read as DEPARTMENT OF HOMELAND
depository institutions are authorized to
follows: SECURITY
issue letters of credit in favor of a
beneficiary in Iran, the Government of Authority: 3 U.S.C. 301; 8 U.S.C. 1182,
1189; 18 U.S.C. 2339 B; 21 U.S.C. 1901–1908; Coast Guard
Iran, an Iranian financial institution, or
any other person whose property and 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. 33 CFR Part 165
interests in property are blocked 2632 (50 U.S.C. 1701 note); Public Law 111–
pursuant to § 560.211 to pay for [Docket No. USCG–2016–0019]
195, 124 Stat. 1312 (22 U.S.C. 8501–8551);
purchases from Iran or the Government Public Law 112–81, 125 Stat. 1298 (22 U.S.C.
of Iran of the categories of Iranian-origin Security Zones; Annual Events in the
8513a); Public Law 112–158, 126 Stat. 1214
goods described in § 560.534(a), (22 U.S.C. 8701–8795); Public Law 112–208,
Captain of the Port Detroit Zone–North
provided that such letters of credit are 126 Stat. 1502; Public Law 113–278, 128 Stat. American International Auto Show,
not advised, negotiated, paid, or 3011 (50 U.S.C. 1701 note). Detroit River, Detroit MI
jstallworth on DSK7TPTVN1PROD with RULES
confirmed by the Government of Iran, ■ 9. Revise note 8 to appendix A to AGENCY: Coast Guard, DHS.
an Iranian financial institution, or any chapter V to read as follows: ACTION: Notice of enforcement of
other person whose property and regulation.
Appendix A to Chapter V—Information
interests in property are blocked
Pertaining to the Specially Designated SUMMARY: The Coast Guard will enforce
pursuant to § 560.211.
(b) Transactions or dealings in Nationals and Blocked Persons List a security zone associated with the
Iranian-origin goods located in third * * * * * North American International Auto
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Document Created: 2018-02-02 12:33:52
Document Modified: 2018-02-02 12:33:52
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule. | |
| Dates | Effective: January 21, 2016 | |
| 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. | |
| FR Citation | 81 FR 3330 | |
| CFR Associated | Administrative Practice and Procedure; Banks; Banking; Carpet; Foodstuffs; Iran and Letters of Credit |
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