[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
Federal Register
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This section of the FEDERAL REGISTER contains regulatory documents
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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]
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