[Federal Register Volume 62, Number 78 (Wednesday, April 23, 1997)]
[Rules and Regulations]
[Pages 19670-19672]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-10444]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 560


Iranian Transactions Regulations: Reporting on Foreign 
Affiliates' Oil-Related Transactions

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Final rule; amendment.

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SUMMARY: The Treasury Department is amending the reporting requirement 
set forth in the Iranian Transactions Regulations on foreign 
affiliates' oil-related transactions. The amended rule requires a U.S. 
person to file a transaction report as to each foreign affiliate that 
engaged in reportable transactions of $1,000,000 or more during the 
calendar quarter. Reports are to be filed within 60 days of the end of 
the quarter.

EFFECTIVE DATE: April 18, 1997.

FOR FURTHER INFORMATION CONTACT: Loren L. Dohm, Chief, Blocked Assets 
Division (tel.: 202/622-2440), or William B. Hoffman, Chief Counsel 
(tel.: 202/622-2410), Office of Foreign Assets

[[Page 19671]]

Control, Department of the Treasury, Washington, DC 20220.

SUPPLEMENTARY INFORMATION:

Electronic and Facsimile Availability

    This document is available as an electronic file on The Federal 
Bulletin Board the day of publication in the Federal Register. By 
modem, dial 202/515-1387 and type ``/GO FAC,'' or call 202/512-1530 for 
disk or paper copies. This file is available for downloading without 
charge in WordPerfect 5.1, ASCII, and Adobe AcrobatTM 
readable (*.PDF) formats. For Internet access, the address for use with 
the World Wide Web (Home Page), Telnet, or FTP protocol is: 
fedbbs.access.gpo.gov. The document is also accessible for downloading 
in ASCII format without charge from Treasury's Electronic Library 
(``TEL'') in the Business, ``Trade and Labor Mall'' of the FedWorld 
bulletin board. By modem, dial 703/321-3339, and select the appropriate 
self-expanding file in TEL. For Internet access, use one of the 
following protocols: Telnet = fedworld.gov (192.239.93.3); World Wide 
Web (Home Page) = http:/www.fedworld.gov; FTP = ftp.fedworld.gov 
(192.239.92.205). Additional information concerning the programs of the 
Office of Foreign Assets Control is available for downloading from the 
Office's Internet Home Page: http://www.ustreas.gov/treasury services/
fac/fac.html, or in fax form through the Office's 24-hour fax-on-demand 
service: call 202/622-0077 using a fax machine, fax modem, or (within 
the United States) a touch-tone telephone.

Background

    The Office of Foreign Assets Control amended the Iranian 
Transactions Regulations in September 1995 (60 FR 47061, Sept. 11, 1995 
-- the ``Regulations''), in implementation of Executive Order 12957 of 
March 15, 1995 (60 FR 14615, Mar. 17, 1995), and Executive Order 12959 
of May 6, 1995 (60 FR 24757, May 9, 1995). This final rule further 
amends the Regulations to modify the reporting requirements of 
Sec. 560.603. That section requires U.S. persons to file reports with 
respect to foreign affiliates engaging in certain oil-related 
transactions involving Iran. Section 560.603, as amended, provides a 
minimum dollar threshold for reportable transactions: A report is 
required only with respect to any foreign affiliate that engaged in a 
reportable transaction or transactions totaling $1,000,000 or more 
during the calendar quarter. The information required with respect to a 
foreign affiliate's relationship to the reporting person is modified, 
and the term reportable transaction is also modified. Reports are now 
due 60 days, rather than 15 days, after the end of each calendar 
quarter.
    Since the Regulations involve a foreign affairs function, Executive 
Order 12866 and the provisions of 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.

List of Subjects in 31 CFR Part 560

    Administrative practice and procedure, Agricultural commodities, 
Banks, banking, Exports, Foreign trade, Imports, Information, 
Investments, Iran, Loans, Penalties, Reporting and recordkeeping 
requirements, Services, Specially designated nationals, Terrorism, 
Transportation.
    For the reasons set forth in the preamble, 31 CFR part 560 is 
amended as follows:

PART 560--IRANIAN TRANSACTIONS REGULATIONS

    1. The authority section is revised to read as follows:
    Authority: 3 U.S.C. 301; 22 U.S.C. 2349aa; 50 U.S.C. 1601-1651, 
1701-1706; Pub. L. 104-132, 110 Stat. 1214, 1254 (18 U.S.C. 2332d); 
Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); 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.

Subpart F--Reports

    2. Section 560.603 is revised to read as follows:


Sec. 560.603  Reports on oil transactions engaged in by foreign 
affiliates.

    (a) Requirement for reports. A report must be filed with the Office 
of Foreign Assets Control with respect to each foreign affiliate of a 
United States person that engaged in a reportable transaction, as 
defined in paragraph (b), during the calendar quarter. Reports are due 
within 60 days after the end of each calendar quarter.
    (b) Definitions. For purposes of this section:
    (1) The term reportable transaction means a transaction of the 
following type:
    (i) Any purchase, sale, or swap of Iranian-origin crude oil, 
natural gas, or petrochemicals;
    (ii) The sale of services (including insurance or financing) or 
goods (including oilfield supplies or equipment) to the Government of 
Iran or an entity in Iran for use in the exploration, development, 
production, processing, pumping, lifting, transporting, or refining of 
crude oil, natural gas, or petrochemicals. For these purposes, the term 
petrochemicals means first-stage materials produced directly from a 
petroleum-based or a natural gas-based feedstock.
    (iii) For purposes of paragraph (b)(1)(i) of this section, a 
purchase, sale or swap is deemed to have occurred as of the date of the 
bill of lading used in connection with such transaction. For purposes 
of paragraph (b)(1)(ii) of this section, the sale of services is deemed 
to have occurred as of the date of loan or commitment, in the case of 
financial or insurance services, or the date on which services are 
invoiced, in other cases. The sale of goods is deemed to have occurred 
as of the date of shipment to Iran.
    (2) The term foreign affiliate means a person or entity other than 
a United States person (see Sec. 560.314) which is organized or located 
outside the United States and which is owned or controlled by a United 
States person or persons.
    (c) Who must report. A United States person must file a report with 
respect to each foreign affiliate owned or controlled by it which 
engaged in a reportable transaction or transactions during the prior 
calendar quarter. For the calendar quarter beginning October 1, 1996, 
and all subsequent quarters, a United States person must file a report 
only as to each foreign affiliate owned or controlled by it which 
engaged in a reportable transaction or transactions totaling $1,000,000 
or more during the prior calendar quarter. A single United States 
entity within a consolidated or affiliated group may be designated to 
report on each foreign affiliate of the United States members of the 
group. Such centralized reporting may be done by the United States 
person who owns or controls, or has been delegated authority to file on 
behalf of, the remaining United States persons in the group.
    (d) What must be reported. (1) Part I of the report must provide 
the name, address, and principal place of business of the United States 
person; its place of incorporation or organization if an entity; and 
the name, title, and telephone number of the individual to contact 
concerning the report.
    (2) Part II of the report must provide, with respect to the foreign 
affiliate, its name and address; the type entity, e.g., corporation, 
partnership, limited

[[Page 19672]]

liability company; the country of its incorporation or organization; 
and its principal place of business.
    (3) Part III of the report must include the following information 
with respect to each reportable transaction (a separate Part III must 
be submitted for each reportable transaction):
    (i) The nature of the transaction, e.g., purchase, sale, swap.
    (ii) A description of the product, technology, or service involved;
    (iii) The name of the Iranian or third-country party or parties 
involved in the transaction;
    (iv) The currency and amount of the transaction, and corresponding 
United States dollar value of the transaction if not denominated in 
United States dollars.
    (e)  Where to report. Reports must be filed with the Compliance 
Programs Division, Office of Foreign Assets Control, Department of the 
Treasury, 1500 Pennsylvania Avenue, NW--Annex, Washington, DC 20220. 
Reports may be submitted by facsimile transmission at 202/622-1657. A 
copy must be retained for the reporter's records.
    (f) Whom to contact. Blocked Assets Division, Office of Foreign 
Assets Control, Department of the Treasury, 1500 Pennsylvania Avenue, 
NW--Annex, Washington, DC 20220; telephone: 202/622-2440.

    Dated: April 4, 1997.
R. Richard Newcomb,
Director, Office of Foreign Assets Control.
    Approved: April 11, 1997.
James E. Johnson,
Assistant Secretary (Enforcement).
[FR Doc. 97-10444 Filed 4-18-97; 10:06 am]
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