[Federal Register Volume 75, Number 187 (Tuesday, September 28, 2010)]
[Rules and Regulations]
[Pages 59611-59613]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-24211]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 560


Iranian Transactions 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 Regulations in 
the Code of Federal Regulations to remove general licenses authorizing 
the importation into the United States of, and dealings in, certain 
foodstuffs and carpets of Iranian origin and related services, and to 
implement the import and export prohibitions in section 103 of the 
Comprehensive Iran Sanctions, Accountability, and Divestment Act of 
2010.

DATES: Effective Date: September 29, 2010.

FOR FURTHER INFORMATION CONTACT: Assistant Director for Compliance, 
Outreach & Implementation, tel.: 202/622-2490, Assistant Director for 
Licensing, tel.: 202/622-2480, Assistant Director for Policy, tel.: 
202/622-4855, Office of Foreign Assets Control, or Chief Counsel 
(Foreign Assets Control), tel.: 202/622-2410, Office of the General 
Counsel, Department of the Treasury (not toll free numbers).

SUPPLEMENTARY INFORMATION: 

Electronic and Facsimile Availability

    This document and additional information concerning OFAC are 
available from OFAC's Web site (http://www.treas.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 1, 2010, the President signed into law the Comprehensive 
Iran Sanctions, Accountability, and

[[Page 59612]]

Divestment Act of 2010 (Pub. L. 111-195) (``CISADA''). Subsection 
103(a) of CISADA provides that, in addition to any other sanction in 
effect, the economic sanctions described in subsection 103(b) of CISADA 
shall apply with respect to Iran beginning 90 days after the date of 
CISADA's enactment. The economic sanctions described in subsections 
103(b)(1) and (b)(2) include prohibitions on the importation of goods 
or services of Iranian origin directly or indirectly into the United 
States and on the exportation of U.S.-origin goods, services, or 
technology from the United States or by a United States person, 
wherever located, to Iran. OFAC will implement these prohibitions 
through an amendment to the Iranian Transactions Regulations, 31 CFR 
Part 560 (the ``ITR''), which already implement, pursuant to, inter 
alia, the International Emergency Economic Powers Act (50 U.S.C. 1701-
1706) (``IEEPA''), prohibitions similar to those set forth in 
subsections 103(b)(1) and (b)(2) of CISADA. Consequently, OFAC is 
amending the ITR by adding CISADA to the ITR's authority citations.
    Notwithstanding the ITR's prohibitions of imports and exports, OFAC 
authorizes certain otherwise prohibited transactions through general 
licenses set forth in the ITR and specific licenses issued pursuant to 
the ITR. In addition, the ITR contain certain exemptions from its 
prohibitions of imports and exports. Similarly, subsections 103(b)(1) 
and (b)(2) of CISADA include a number of exceptions to CISADA's 
prohibitions of imports and exports, respectively. The exceptions to 
CISADA's prohibitions differ in some cases from the exemptions and 
authorizations contained in or issued pursuant to the ITR.
    To the extent that the ITR exemptions and licenses authorize import 
and export transactions beyond CISADA's exceptions, subsection 
103(d)(1) of CISADA provides the authority to resolve these 
differences. That subsection authorizes the President to prescribe 
regulations to carry out section 103 and specifically states that these 
regulations may include regulatory exceptions to the sanctions 
described in subsection 103(b). Therefore, except with respect to 
sections 560.534 and 560.535 of the ITR, which are being removed (see 
below), OFAC is relying on the authority of subsection 103(d)(1) of 
CISADA to maintain in effect the general and specific licenses set 
forth in or issued pursuant to the ITR, and to treat those licenses as 
regulatory exceptions to the import and export prohibitions in 
subsection 103(b) of CISADA. This extends to general and specific 
licenses authorizing transactions that are beyond those specified in 
the exceptions set forth in subsections 103(b)(1) and (b)(2) of CISADA 
and that otherwise would be prohibited by CISADA.
    Conversely, to the extent that the transactions described in 
CISADA's exceptions are neither exempt from nor authorized in or 
pursuant to the ITR, those transactions will remain prohibited pursuant 
to the ITR and, inter alia, IEEPA. In an explanatory statement, the 
Committee of Conference on CISADA stated that notwithstanding the 
exceptions in CISADA, any requirement under IEEPA to seek a license for 
the transactions described in those exceptions remains in effect. 
CISADA states in subsection 103(a) that the sanctions imposed by 
subsection 103(b) are ``in addition to any other sanction in effect.'' 
Accordingly, a specific license from OFAC is required to engage in 
transactions described in CISADA's exceptions if such transactions are 
neither exempt from nor authorized in or pursuant to the ITR.
    Subsection 103(d)(2) of CISADA strengthens the current trade 
embargo against Iran by providing that no exception to the import 
prohibition in subsection 103(b)(1) of CISADA may be made for the 
commercial importation of an Iranian-origin good described in section 
560.534(a) of the ITR, i.e., foodstuffs intended for human consumption 
that are classified under chapters 2-23 of the Harmonized Tariff 
Schedule of the United States and 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. Accordingly, as of September 29, 2010 (i.e., the 
date that is 90 days after the date of CISADA's enactment), sections 
560.534 and 560.535 of the ITR will be revoked, and OFAC will no longer 
authorize, by general or specific license, the commercial importation 
into the United States of these foodstuffs and carpets of Iranian-
origin. Any such goods imported into the United States pursuant to 
sections 560.534 and 560.535 of the ITR must be entered for consumption 
prior to that date.
    In addition, section 560.306 of the ITR defines the terms goods of 
Iranian origin and Iranian-origin goods to include: (1) Goods grown, 
produced, manufactured, extracted, or processed in Iran and (2) goods 
which have entered into Iranian commerce. Based on this definition, 
foodstuffs and carpets of third-country origin that are transshipped 
through Iran become goods of Iranian-origin. Therefore, the revocation 
of the general licenses in sections 560.534 and 560.535 of the ITR also 
will affect the specified foodstuffs and carpets of third-country 
origin that are transshipped through Iran for importation into the 
United States.
    Section 560.534 of the ITR authorized both the commercial and 
noncommercial importation into the United States of certain foodstuffs 
and carpets of Iranian origin. As a result of the revocation of 
sections 560.534 and 560.535 of the ITR, the noncommercial importation 
of certain foodstuffs and carpets of Iranian origin into the United 
States and related services would also be prohibited by section 560.201 
of the ITR, unless otherwise authorized or exempt. One such 
authorization is the general license for the importation of Iranian-
origin household goods and personal effects set forth in section 
560.524(b) of the ITR. That general license continues in effect. OFAC 
notes that U.S. Customs and Border Protection (CBP) Form 3299, 
``Declaration for Free Entry of Unaccompanied Articles,'' is used to 
enter Iranian-origin household and personal effects into the United 
States.

Public Participation

    Because the Regulations involve 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 Regulations 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

    Administrative practice and procedure, Banks, Banking, Brokers, 
Foreign trade, Investments, Loans, Securities, Iran.


[[Page 59613]]



0
For the reasons set forth in the preamble, the Department of the 
Treasury's Office of Foreign Assets Control amends 31 CFR part 560 as 
follows:

PART 560--IRANIAN TRANSACTIONS REGULATIONS

0
1. Revise the authority citation to part 560 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; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 
note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); Pub. L. 
111-195, 124 Stat. 1312 (22 U.S.C. 8501-8551); 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.

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


Sec. Sec.  560.534 and 560.535  [Removed and reserved]

0
2. Remove and reserve Sec. Sec.  560.534 and 560.535.

    Dated: September 22, 2010.
Adam J. Szubin,
Director, Office of Foreign Assets Control.
[FR Doc. 2010-24211 Filed 9-27-10; 8:45 am]
BILLING CODE 4810-AL-P