[Federal Register Volume 61, Number 44 (Tuesday, March 5, 1996)]
[Rules and Regulations]
[Pages 8471-8472]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-5103]



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 Rules and Regulations
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  Federal Register / Vol. 61, No. 44 /  Tuesday, March 5, 1996 / Rules 
and Regulations  

[[Page 8471]]


DEPARTMENT OF COMMERCE

Bureau of Export Administration

15 CFR Part 785

[Docket No. 960221039-6039-01]
RIN 0694-AB31


Exports to Iran; Imposition of Economic Sanctions

AGENCY: Bureau of Export Administration.

ACTION: Final rule.

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SUMMARY: The Bureau of Export Administration (BXA) is amending the 
Export Administration Regulations (EAR) to reflect the imposition of 
additional economic sanctions on Iran as a result of the issuance of 
Executive Order 12959 on May 6, 1995. The Executive Order delegates 
implementation responsibility to the Department of the Treasury's 
Office of Foreign Assets Control (OFAC), including authority for 
exports and certain reexports.

EFFECTIVE DATE: March 5, 1996.

FOR FURTHER INFORMATION CONTACT: Hillary Hess, Office of Exporter 
Services, Bureau of Export Administration, Telephone: (202) 482-2440.

SUPPLEMENTARY INFORMATION:

Background

    On May 6, 1995, President Clinton issued Executive Order 12959 (60 
FR 24757), imposing significant new economic sanctions on Iran. The 
effective date of the Executive Order was May 7, 1995 at 12:01 EDT, 
except that an effective date of June 6, 1995, 12:01 a.m. EDT applied 
for exports and reexports under contracts that were entered into prior 
to May 7, 1995, and that were authorized pursuant to regulations in 
force immediately prior to May 6, 1995. The Department of the 
Treasury's Office of Foreign Assets Control (OFAC) has responsibility 
for implementing the Executive Order, including issuing licenses for 
exports and certain reexports to Iran. (See OFAC's Iranian Transactions 
Regulations, 31 CFR part 560.) If OFAC authorizes an export or 
reexport, no separate authorization from BXA is necessary. This rule 
makes clear that enforcement action may be taken under the EAR with 
respect to an export or reexport prohibited both by the EAR and by the 
Executive Order and not authorized by OFAC.
    Although the Export Administration Act (EAA) expired on August 20, 
1994, the President invoked the International Emergency Economic Powers 
Act and continued in effect, to the extent permitted by law, the 
provisions of the EAA and the EAR in Executive Order 12924 of August 
19, 1994, as extended by the President's notice of August 15, 1995 (60 
Fed. Reg. 42767).

Rulemaking Requirements

    1. This final rule has been determined to be not significant for 
purposes of E. O. 12866.
    2. This rule involves collections of information subject to the 
Paperwork Reduction Act of 1980 (44 U.S.C. 3501 et seq.). These 
collections have been approved by the Office of Management and Budget 
under control numbers 0694-0005, 0694-0007, and 0694-0010. 
Notwithstanding any other provision of law, no person is required to 
respond to nor shall a person be subject to a penalty for failure to 
comply with a collection of information subject to the requirements of 
the Paperwork Reduction Act unless that collection of information 
displays a currently valid OMB Control Number.
    3. This rule does not contain policies with Federalism implications 
sufficient to warrant preparation of a Federalism assessment under 
Executive Order 12612.
    4. The provisions of the Administrative Procedure Act requiring 
notice of proposed rulemaking, the opportunity for public 
participation, and a delay in effective date, are inapplicable because 
this regulation involves a military and foreign affairs function of the 
United States (see 5 U.S.C. 553(a)(1)). Further, no other law requires 
that a notice of proposed rulemaking and an opportunity for public 
comment be given for this rule.
    Therefore, this regulation is issued in final form. Although there 
is no formal comment period, public comments on this regulation are 
welcome on a continuing basis. Comments should be submitted to Hillary 
Hess, Office of Exporter Services, Regulatory Policy Division, Bureau 
of Export Administration, Department of Commerce, P.O. Box 273, 
Washington, DC 20044.
    5. Because a notice of proposed rulemaking and an opportunity for 
public comment are not required to be given for this rule under 5 
U.S.C. 553(a)(1) or by any other law, under sections 3(a) and 4 (a) of 
the Regulatory Flexibility Act (5 U.S.C. 603(a) and 604(a)) no initial 
or final Regulatory Flexibility Analysis has to be or will be prepared.

List of Subjects in 15 CFR Part 785

    Exports.

    Accordingly, Part 785 of the Export Administration Regulations (15 
CFR Parts 730-799) is amended as follows:
    1. The authority citation for 15 CFR Part 785 continues to read as 
follows:

    Authority: Pub. L. 90-351, 82 Stat. 197 (18 U.S.C. 2510 et 
seq.), as amended; Pub. L. 95-223, 91 Stat. 1626 (50 U.S.C. 1701 et 
seq.); Pub. L. 95-242, 92 Stat. 120 (22 U.S.C. 3201 et seq. and 42 
U.S.C. 2139a); Pub. L. 96-72, 93 Stat. 503 (50 U.S.C. App. 2401 et 
seq.), as amended; Pub. L. 102-484, 106 Stat. 2575 (22 U.S.C. 6004); 
E.O. 12002 of July 7, 1977 (42 FR 35623, July 7, 1977), as amended; 
E.O. 12058 of May 11, 1978 (43 FR 20947, May 16, 1978); E.O. 12214 
of May 2, 1980 (45 FR 29783, May 6, 1980); E.O. 12730 of September 
30, 1990 (55 FR 40373, October 2, 1990), as continued by Notice of 
September 25, 1992 (57 FR 44649, September 28, 1992); E.O. 12924 of 
August 19, 1994 (59 FR 43437, August 23, 1994); E.O. 12938 of 
November 14, 1994 (59 FR 59099 of November 16, 1994); E.O. 12957 of 
March 15, 1995 (60 FR 14615 of March 17, 1995); E.O. 12959 of May 6, 
1995 (60 FR 24757 of May 9, 1995); and Notice of August 15, 1995, 60 
FR 42767.

PART 785--[AMENDED]

    2. Section 785.4 is amended by adding paragraph (b) to read as 
follows:


Sec. 785.4  Country Groups T & V.

* * * * *
    (b) Iran.

    Note: The Treasury Department's Office of Foreign Assets Control 
(OFAC) administers a comprehensive trade and investment embargo 
against Iran under the authority of the International Emergency 
Economic 

[[Page 8472]]
Powers Act of 1977, as amended, section 505 of the International 
Security and Development Cooperation Act of 1985, and Executive 
Orders 12957 and 12959 of March 15, 1995 and May 6, 1995, 
respectively. This embargo includes prohibitions on export and 
certain reexport transactions involving Iran, including transactions 
dealing with items subject to the EAR. (See OFAC's Iranian 
Transactions Regulations, 31 CFR part 560.)

    (1) The controls on exports and reexports to Iran, as specified in 
the CCL and in paragraph (d) of this section, continue to apply. To 
avoid duplication, exporters or reexporters are not required to seek 
separate authorization from BXA for an export or reexport subject both 
to the EAR and to OFAC's Iranian Transactions Regulations. Therefore, 
if OFAC authorizes an export or reexport, no separate authorization 
from BXA is necessary.
    (2) Section 3 of the Executive Order directs all agencies of the 
United States Government to take all appropriate measures within their 
jurisdiction to carry out the order. Accordingly, no validated license, 
general license or other authorization constitutes authority for any 
export or reexport prohibited by the Iranian Transactions Regulations 
unless authorized by OFAC, and no person may export or reexport items 
subject to both the EAR and OFAC's Iranian Transactions Regulations 
without prior OFAC authorization. Any export or reexport prohibited 
both by the EAR and by the Executive Order and not authorized by OFAC 
is a violation of the EAR.
    (3) Exporters should consult with OFAC (Office of Foreign Assets 
Control, U.S. Department of the Treasury, 1500 Pennsylvania Avenue, 
N.W., Annex, 2nd Floor, Washington, D.C. 20220. Telephone (202) 622-
2480) for authorization for:
    (i) Exports from the United States involving Iran;
    (ii) Exports or reexports to Iran from a third country, when the 
exporter or reexporter is a United States person (as defined in OFAC's 
Iranian Transactions Regulations, 31 CFR part 560); or
    (iii) Reexports to Iran of U.S.-origin items that were subject to 
any export license application requirements prior to Executive Order 
12959 of May 6, 1995.

(Office of Foreign Assets Control, U.S. Department of the Treasury, 
1500 Pennsylvania Avenue, N.W., Annex, 2nd Floor, Washington, D.C. 
20220. Telephone (202) 622-2480.)
* * * * *
    Dated: February 29, 1996.
Sue E. Eckert,
Assistant Secretary for Export Administration.
[FR Doc. 96-5103 Filed 3-4-96; 8:45 am]
BILLING CODE 3510-DT-P