Iranian Transactions Regulations, 64663-64692 [2012-25770]
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Vol. 77
Monday,
No. 204
October 22, 2012
Part III
Department of the Treasury
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Foreign Assets Control Office
31 CFR Part 560
Iranian Transactions Regulations; Final Rule
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Federal Register / Vol. 77, No. 204 / Monday, October 22, 2012 / Rules and Regulations
facsimile through a 24-hour fax-ondemand service, tel.: 202/622–0077.
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 560
Iranian Transactions Regulations
Office of Foreign Assets
Control, Treasury.
ACTION: Final rule.
AGENCY:
The Department of the
Treasury’s Office of Foreign Assets
Control (‘‘OFAC’’) is changing the
heading of the Iranian Transactions
Regulations to the Iranian Transactions
and Sanctions Regulations (the ‘‘ITSR’’),
amending the renamed ITSR, and
reissuing them in their entirety, to
implement Executive Order 13599 of
February 5, 2012 (‘‘Blocking Property of
the Government of Iran and Iranian
Financial Institutions’’), and subsections
1245(c) and (d)(1)(B) of the National
Defense Authorization Act for Fiscal
Year 2012 (the ‘‘NDAA’’). OFAC also is
adding several new general licenses to
the ITSR, removing a few general
licenses, and incorporating into the
ITSR a general license and a statement
of licensing policy that, until now, have
appeared only on OFAC’s Web site on
the Iran sanctions page. Finally, OFAC
is updating certain provisions of the
ITSR and making other technical and
conforming changes. The ITSR are
separate and apart from the Iranian
Financial Sanctions Regulations, 31 CFR
part 561, as amended and reissued in
their entirety on February 27, 2012,
which were promulgated to implement
the Comprehensive Iran Sanctions,
Accountability, and Divestment Act of
2010, as well as the provisions of
section 1245 of the NDAA other than
those set forth above.
DATES: Effective Date: October 22, 2012.
FOR FURTHER INFORMATION CONTACT:
Assistant Director for Sanctions
Compliance & Evaluation, 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:
SUMMARY:
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Electronic and Facsimile Availability
This document and additional
information concerning OFAC are
available from OFAC’s Web site
(www.treas.gov/ofac). Certain general
information pertaining to OFAC’s
sanctions programs also is available via
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Background
The Iranian Transactions Regulations,
31 CFR part 560 (the ‘‘ITR’’), implement
a series of Executive orders that began
with Executive Order 12613, which was
issued on October 29, 1987, pursuant to
authorities including the International
Security and Development Cooperation
Act of 1985 (22 U.S.C. 2349aa–9). In that
Order, the President prohibited the
importation of Iranian-origin goods and
services. Subsequently, in Executive
Order 12957, issued on March 15, 1995
(‘‘E.O. 12957’’), under the authority of,
inter alia, the International Emergency
Economic Powers Act (50 U.S.C. 1701–
1706) (‘‘IEEPA’’) and the National
Emergencies Act (50 U.S.C. 1601 et seq.)
(‘‘NEA’’), the President declared a
national emergency with respect to the
actions and policies of the Government
of Iran, including its support for
international terrorism, its efforts to
undermine the Middle East peace
process, and its efforts to acquire
weapons of mass destruction and the
means to deliver them. To deal with that
threat, E.O. 12957 imposed prohibitions
on certain transactions with respect to
the development of Iranian petroleum
resources. On May 6, 1995, to further
respond to this threat, the President
issued Executive Order 12959, which
imposed comprehensive trade and
financial sanctions on Iran, but did not
include blocking sanctions. Finally, on
August 19, 1997, the President issued
Executive Order 13059 consolidating
and clarifying the previous orders.
On December 31, 2011, the President
signed into law the National Defense
Authorization Act for Fiscal Year 2012
(Pub. L. 112–81) (the ‘‘NDAA’’). Section
1245 of the NDAA, among other things,
provides for the imposition of sanctions
on the Central Bank of Iran and other
Iranian financial institutions.
Specifically, section 1245(c) provides
that the President shall, pursuant to
IEEPA, block and prohibit all
transactions in all property and interests
in property of an Iranian financial
institution if such property and interests
in property are in the United States,
come within the United States, or are or
come within the possession or control of
a United States person. In addition,
section 1245(d)(1)(B) of the NDAA
authorizes the President to impose
sanctions pursuant to IEEPA with
respect to the Central Bank of Iran.
Finally, section 1245(g) of the NDAA
provides that the President may exercise
all authorities under sections 203 and
205 of IEEPA and may impose the
penalties provided in section 206(b) and
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(c) of IEEPA to implement and enforce
section 1245 of the NDAA.
On February 5, 2012, the President,
invoking the authority of, inter alia,
IEEPA and section 1245 of the NDAA,
issued Executive Order 13599
(‘‘Blocking Property of the Government
of Iran and Iranian Financial
Institutions’’) (‘‘E.O. 13599’’). The
President issued E.O. 13599 in order to
take additional steps with respect to the
national emergency declared in E.O.
12957 with respect to Iran, particularly
in light of the deceptive practices of the
Central Bank of Iran and other Iranian
banks to conceal transactions of
sanctioned parties, the deficiencies in
Iran’s anti-money laundering regime
and the weaknesses in its
implementation, and the continuing and
unacceptable risk posed to the
international financial system by Iran’s
activities.
Section 1 of E.O. 13599 generally
blocks 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 (1) the Government of Iran,
including the Central Bank of Iran, (2)
any Iranian financial institution,
including the Central Bank of Iran, and
(3) any person determined by the
Secretary of the Treasury, in
consultation with the Secretary of State,
to be owned or controlled by, or to have
acted or purported to act for or on behalf
of, directly or indirectly, any person
whose property and interests in
property are blocked pursuant to E.O.
13599. The property and interests in
property of the Government of Iran, any
Iranian financial institution, and any
other person described above may not
be transferred, paid, exported,
withdrawn, or otherwise dealt in.
In section 2 of E.O. 13599, the
President determined that the making of
donations of certain articles, such as
food, clothing, and medicine, intended
to be used to relieve human suffering, as
specified in section 203(b)(2) of IEEPA
(50 U.S.C. 1702(b)(2)), by, to, or for the
benefit of any person whose property
and interests in property are blocked
pursuant to section 1 of the order would
seriously impair his ability to deal with
the national emergency declared in E.O.
12957. The President therefore
prohibited the donation of such items as
provided by section 1 of E.O. 13599.
Section 3 of E.O. 13599 provides that
the prohibitions in section 1 of the order
include, but are not limited to, the
making of any contribution or provision
of funds, goods, or services by, to, or for
the benefit of any person whose
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property and interests in property are
blocked pursuant to the order, and the
receipt of any contribution or provision
of funds, goods, or services from any
such person.
Section 4(b) of E.O. 13599 provides
that the prohibitions in section 1 of the
order do not apply to property and
interests in property of the Government
of Iran that were blocked pursuant to
Executive Order 12170 of November 14,
1979 (the Executive order issued in
response to the takeover of the U.S.
Embassy in Tehran and the taking
hostage of U.S. diplomats and other
persons on November 4, 1979), and
thereafter made subject to the transfer
directives set forth in Executive Order
12281 of January 19, 1981 (one of the
Executive orders that implemented the
Algiers Accords of the same date), and
implementing regulations thereunder
(i.e., the Iranian Assets Control
Regulations, 31 CFR part 535).
Section 5 of E.O. 13599 prohibits any
transaction that evades or avoids, has
the purpose of evading or avoiding,
causes a violation of, or attempts to
violate any of the prohibitions set forth
in the order, as well as any conspiracy
formed to violate such prohibitions.
Section 6 of E.O. 13599 provides that
nothing in section 1 shall prohibit
transactions for the conduct of the
official business of the Federal
Government by employees, grantees, or
contractors thereof.
Section 9 of E.O. 13599 authorizes the
Secretary of the Treasury, in
consultation with the Secretary of State,
to take such actions, including the
promulgation of rules and regulations,
and to employ all powers granted to the
President by IEEPA as may be necessary
to carry out the purposes of E.O. 13599,
other than the purposes described in
section 11 (which are delegated to the
Secretary of State). The Secretary of the
Treasury may redelegate any of these
functions and authorities to other
officers and agencies of the United
States Government consistent with
applicable law.
Acting under authority delegated by
the Secretary of the Treasury pursuant
to section 9 of E.O. 13599, OFAC is
changing the heading of the Iranian
Transactions Regulations, 31 CFR part
560 (the ‘‘ITR’’), to the Iranian
Transactions and Sanctions Regulations,
31 CFR part 560 (the ‘‘ITSR’’), and
amending the renamed ITSR to
implement E.O. 13599 (other than
section 11) and sections 1245(c) and
(d)(1)(B) of the NDAA. To implement
the blocking prohibitions of E.O. 13599
and the NDAA, OFAC is adding
numerous new sections to the ITSR,
including prohibitions, definitions,
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interpretations, and licensing
provisions. OFAC also is revising many
existing sections of the ITSR in order to
take account of the new governmentwide blocking as well as the blocking of
all Iranian financial institutions. Due to
the extensive nature of these
amendments, OFAC is reissuing the
ITSR in their entirety.
In addition to the changes needed to
implement a blocking program, OFAC is
adding to the ITSR several new general
licenses, incorporating into the ITSR a
general license and a statement of
licensing policy that, until now, have
appeared only on OFAC’s Web site on
the Iran sanctions page, and removing
several general licenses and statements
of licensing policy that previously were
part of the Iranian Transactions
Regulations. Finally, OFAC is updating
certain provisions of the ITSR and
making other technical and conforming
changes.
Accordingly, new section 560.211 is
being added to subpart B of the ITSR to
implement the blocking prohibitions in
section 1 of E.O. 13599. New sections
560.212 through 560.214 are being
added to subpart B to set forth certain
consequences and requirements that
stem from the blocking prohibitions,
including, inter alia, the requirement to
hold blocked funds in interest-bearing
accounts. New paragraphs (e) and (f) are
being added to section 560.210 to
incorporate two exemptions from the
blocking prohibitions that are set forth,
respectively, in sections 6 and 4(b) of
E.O. 13599. What had been paragraph
(e) of section 560.210 of the ITR has
been removed as out-of-date.
In subpart C, which defines key terms
used throughout the ITSR, new sections
560.322 through 560.327 are being
added to define key terms used in the
new blocking prohibitions or elsewhere
in the regulations. Also, certain existing
definitions in subpart C are being
revised to take account of new
provisions, to provide greater clarity
with respect to the terms being used,
and to update certain definitions.
For the same reasons, in subpart D,
which contains interpretive sections
regarding the ITSR, new sections
560.421 through 560.428 are being
added and changes are being made to
certain existing sections. Among these
changes, an important change is being
made to section 560.405, which
provides that transactions ordinarily
incident to a licensed transaction and
necessary to give effect to it are also
authorized, with certain exceptions. A
new exception for payments or transfers
of funds is being added in paragraph (b)
of section 560.405. Thus, payments or
transfers of funds no longer are
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considered ordinarily incident to a
licensed transaction and instead must
be authorized by a general or specific
license. A new note to paragraph (b) of
section 560.405 refers to section 560.516
for a general license authorizing United
States depository institutions or United
States registered brokers or dealers in
securities to process transfers of funds if
the transfer arises from, and is
ordinarily incident and necessary to
give effect to, an underlying transaction
authorized by a specific or general
license issued pursuant to, or set forth
in, this part. (A final change to section
560.405 that deals with sales of
agricultural commodities, medicine, and
medical devices is discussed below.)
Subpart E of the ITSR contains (1)
general licenses that authorize
transactions otherwise prohibited under
the ITSR but found to be consistent with
U.S. policy, and (2) statements of
licensing policy that describe
transactions that may be authorized by
specific license issued pursuant to the
procedures described in subpart E of 31
CFR part 501. Subpart E of the ITSR is
being extensively revised, and certain
sections also are being renumbered.
New general licenses are being added in
sections 560.519, 560.543, 560.544,
560.546 through 560.548, and 560.551
through 560.554. New sections 560.545
and 560.550 incorporate into the ITSR,
respectively, a statement of licensing
policy and a general license that, until
now, have been posted only on OFAC’s
Web site; new section 560.550 also
reflects significant changes to the
general license. Section 560.549
contains a statement of licensing policy
for Iranian news organizations’ offices
in the United States that previously was
found in section 560.519, which is now
a general license authorizing specified
journalistic activities and the
establishment of news bureaus in Iran,
subject to certain limitations.
Moreover, revisions are being made to
several pre-existing authorizations,
including those in sections 560.505,
560.508, 560.516, 560.517 and 560.530.
Furthermore, certain general licenses
and statements of licensing policy that
previously appeared in the ITR are
being removed and hence not added to
the ITSR, either because they are out-ofdate (e.g., ITR sections 560.513, 560.515,
560.520, 560.536, 560.537) or because
they are no longer consistent with U.S.
policy (e.g., ITR sections 560.511 and
560.526).
In addition, OFAC is revising the
sections of the ITSR dealing with
authorized sales of agricultural
commodities, medicine, and medical
devices to Iran pursuant to the Trade
Sanctions Reform and Export
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Enhancement Act of 2000, as amended
(22 U.S.C. 7201 et seq.) (‘‘TSRA’’). First,
OFAC is amending section 560.530 to
add a general license, in new paragraph
(a)(3), authorizing the exportation or
reexportation of medicine and basic
medical supplies to Iran. The term
medicine already is defined in
paragraph (e)(2) of section 560.530. The
term basic medical supplies is newly
defined in paragraph (a)(3)(ii) to mean
those medical devices, as defined in
paragraph (e)(3) of section 560.530, that
are included on the List of Basic
Medical Supplies on the Office of
Foreign Assets Control’s Web site (www.
treasury.gov/ofac) on the Iran Sanctions
page, but not including replacement
parts. The List of Basic Medical
Supplies generally will contain medical
devices (excluding replacement parts)
for which OFAC previously did not
require an Official Commodity
Classification of EAR99 issued by the
Department of Commerce’s Bureau of
Industry and Security to be submitted
with a specific license application and
which are now generally licensed.
Certain classes of medicine are excluded
from the scope of this general license by
new paragraph (a)(3)(iii) of section
560.530. Exports of medicine and basic
medical supplies to military or law
enforcement purchasers or importers are
excluded from the scope of this general
license by new paragraph (a)(3)(iv) of
section 560.530.
Second, OFAC is amending sections
560.530 and 560.532, as well as
interpretive section 560.405 in subpart
D of the ITSR, to clarify the rules for
financing of TSRA sales. New paragraph
(a)(3)(i) of section 560.530 provides that
payment terms and financing for sales
pursuant to the new general license for
medicine and basic medical supplies
must be limited to, and consistent with,
those authorized by section 560.532.
Paragraph (a)(2)(i) of section 560.530 is
being amended to add the same
requirement to the existing general
license for exports of food.
OFAC is revising section 560.532 to
provide that the general license for
payment terms in that section applies to
all sales pursuant to section 560.530(a),
whether authorized by general or
specific license. OFAC also is revising
paragraph (e) of section 560.405 to
clarify that financing of all TSRA sales
authorized pursuant to section
560.530(a) is excepted from the
authorization in section 560.405 for
transactions ordinarily incident to a
licensed transaction. Sections 560.530
and 560.532, which authorize the
conduct of related transactions,
including payment terms and financing,
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for the TSRA sales described above,
govern instead.
Third, a new authorized payment
term for all TSRA sales is being added
in section 560.532. New paragraph (a)(4)
of section 560.532 specifies that the new
payment term is a letter of credit issued
by an Iranian financial institution
whose property and interests in
property are blocked solely pursuant to
31 CFR part 560. Such a letter of credit
must be initially advised, confirmed or
otherwise dealt in by a third-country
financial institution that is not a United
States person, an Iranian financial
institution, or the Government of Iran
before it is advised, confirmed or dealt
in by a U.S. financial institution.
Fourth, OFAC is amending the rules
for TSRA sales by revising section
560.530(f), to clarify that the term
medicine does not include cosmetics,
and making other technical and
conforming changes to sections 560.530,
560.532, and 560.533.
Finally, OFAC is removing both
Appendix A to Part 560, which listed
persons determined to be the
Government of Iran (as defined in
section 560.304) and Appendix C to Part
560. The persons that were listed in
Appendix A to Part 560 are listed on
OFAC’s List of Specially Designated
Nationals and Blocked Persons, and
their property and interests in property
are blocked pursuant to E.O. 13599 and
section 560.211 of the ITSR;
maintaining a separate Appendix A to
Part 560, therefore, no longer serves any
useful purpose. Appendix C to Part 560
set forth eligible procurement bodies of
the Government of Iran for purposes of
a statement of licensing policy that was
removed from the ITSR when TSRA was
first implemented. It too no longer
serves any purpose.
This final rule, in addition to
renaming, amending, and reissuing the
ITR as the ITSR, also makes a
conforming amendment to Appendix A
to 31 CFR chapter V.
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.
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:
■ 1. Revise 31 CFR part 560 to read as
follows:
PART 560—IRANIAN TRANSACTIONS
AND SANCTIONS REGULATIONS
Subpart A—Relation of This Part to Other
Laws and Regulations
Sec.
560.101 Relation of this part to other laws
and regulations.
Public Participation
Because the ITSR 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.
Subpart B—Prohibitions
560.201 Prohibited importation of goods or
services from Iran.
560.202 [Reserved]
560.203 Evasions; attempts; causing
violations; conspiracies.
560.204 Prohibited exportation,
reexportation, sale or supply of goods,
technology, or services to Iran.
560.205 Prohibited reexportation of goods,
technology or services to Iran or the
Government of Iran by persons other
than United States persons; exceptions.
560.206 Prohibited trade-related
transactions with Iran; goods,
technology, or services.
560.207 Prohibited investment.
560.208 Prohibited facilitation by United
States persons of transactions by foreign
persons.
560.209 Prohibited transactions with
respect to the development of Iranian
petroleum resources.
560.210 Exempt transactions.
560.211 Prohibited transactions involving
blocked property.
560.212 Effect of transfers violating the
provisions of this part.
560.213 Holding of funds in interestbearing accounts; investment and
reinvestment.
560.214 Expenses of maintaining blocked
physical property; liquidation of blocked
property.
Paperwork Reduction Act
The collections of information related
to the ITSR are contained in 31 CFR part
501 (the ‘‘Reporting, Procedures and
Subpart C—General Definitions
560.301 Effective date.
560.302 [Reserved]
560.303 Iran; Iranian.
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560.304 Government of Iran.
560.305 Person; entity.
560.306 Iranian-origin goods or services;
goods or services owned or controlled by
the Government of Iran.
560.307 United States.
560.308 Importation of goods.
560.309 [Reserved]
560.310 License.
560.311 General license.
560.312 Specific license.
560.313 Entity owned or controlled by the
Government of Iran.
560.314 United States person; U.S. person.
560.315 Information or informational
materials.
560.316 New investment.
560.317 Credits or loans.
560.318 [Reserved]
560.319 United States depository
institution.
560.320 Iranian accounts.
560.321 United States registered broker or
dealer in securities.
560.322 Blocked account; blocked
property.
560.323 Interest.
560.324 Iranian financial institution.
560.325 Property; property interest.
560.326 Transfer.
560.327 U.S. financial institution.
Subpart D—Interpretations
560.401 Reference to amended sections.
560.402 Effect of amendment.
560.403 Transshipment or transit through
Iran.
560.404 [Reserved]
560.405 Transactions ordinarily incident to
a licensed transaction authorized.
560.406 Transshipment or transit through
the United States.
560.407 Transactions related to Iranianorigin goods.
560.408 Importation into and release from
a bonded warehouse or foreign trade
zone.
560.409 [Reserved]
560.410 Provision of services.
560.411 [Reserved]
560.412 Extensions of credit or loans to
Iran.
560.413 [Reserved]
560.414 Reexportation of certain U.S.origin goods exported prior to May 7,
1995.
560.415 [Reserved]
560.416 Brokering services.
560.417 Facilitation; change of policies and
procedures; referral of business
opportunities offshore.
560.418 Release of technology or software
in the United States or a third country.
560.419 U.S. employment of persons
ordinarily resident in Iran.
560.420 Reexportation by non-U.S. persons
of certain foreign-made products
containing U.S.-origin goods or
technology.
560.421 Setoffs prohibited.
560.422 Termination and acquisition of an
interest in blocked property.
560.423 Offshore transactions involving
blocked property.
560.424 Payments from blocked accounts to
satisfy obligations prohibited.
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560.425 Entities owned by a person whose
property and interests in property are
blocked.
560.426 Charitable contributions.
560.427 Exportation, reexportation, sale or
supply of financial services to Iran or the
Government of Iran.
560.428 Credit extended and cards issued
by U.S. financial institutions.
Subpart E—Licenses, Authorizations, and
Statements of Licensing Policy
560.501 General and specific licensing
procedures.
560.502 Effect of license or authorization.
560.503 Exclusion from licenses and
authorizations.
560.504 [Reserved]
560.505 Activities and services related to
certain nonimmigrant and immigrant
categories authorized.
560.506 Importation and exportation of
certain gifts authorized.
560.507 [Reserved]
560.508 Telecommunications and mail
transactions authorized.
560.509 Certain transactions related to
patents, trademarks, and copyrights
authorized.
560.510 Transactions related to the
resolution of disputes between the
United States or United States nationals
and the Government of Iran.
560.511 [Reserved]
560.512 Iranian Government missions in
the United States.
560.513–560.515 [Reserved]
560.516 Transfers of funds involving Iran.
560.517 Exportation of services: Iranian
accounts at United States depository
institutions or United States registered
brokers or dealers in securities.
560.518 Transactions in Iranian-origin and
Iranian Government property.
560.519 Journalistic activities and
establishment of news bureaus in Iran.
560.520 [Reserved]
560.521 Diplomatic pouches.
560.522 Allowable payments for overflights
of Iranian airspace.
560.523 Exportation of equipment and
services relating to information and
informational materials.
560.524 Household goods and personal
effects.
560.525 Provision of certain legal services.
560.526 [Reserved]
560.527 Rescheduling existing loans.
560.528 Aircraft safety.
560.529 Bunkering and emergency repairs.
560.530 Commercial sales, exportation, and
reexportation of agricultural
commodities, medicine, and medical
devices.
560.531 [Reserved]
560.532 Payment for and financing of
exports and reexports of agricultural
commodities, medicine, and medical
devices.
560.533 Brokering sales of agricultural
commodities, medicine, and medical
devices.
560.534–560.537 [Reserved]
560.538 Authorized transactions necessary
and ordinarily incident to publishing.
560.539 Official activities of certain
international organizations.
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560.540 Exportation of certain services and
software incident to Internet-based
communications.
560.541 Third-country diplomatic and
consular funds transfers.
560.542 Importation or exportation of
human remains for burial, cremation, or
interment authorized.
560.543 Sale of certain real property in Iran
and transfer of related funds to the
United States.
560.544 Certain educational activities by
U.S. persons in third countries
authorized.
560.545 Democracy and human rights in
Iran and academic and cultural exchange
programs.
560.546 Payments and transfers to blocked
accounts in U.S. financial institutions.
560.547 Entries in certain accounts for
normal service charges authorized.
560.548 Investment and reinvestment of
certain funds.
560.549 Policy governing Iranian news
organizations’ offices in the United
States.
560.550 Certain noncommercial, personal
remittances to or from Iran authorized.
560.551 Student loan payments from
persons in Iran authorized.
560.552 Transactions related to U.S.
citizens residing in Iran.
560.553 Payments from funds originating
outside the United States authorized.
560.554 Importation and exportation of
services related to conferences in the
United States or third countries
authorized.
Subpart F—Reports
560.601 Records and reports.
560.602–560.603 [Reserved]
Subpart G—Penalties
560.701 Penalties.
560.702 Detention of shipments.
560.703 Pre-Penalty Notice; settlement.
560.704 Penalty imposition.
560.705 Administrative collection; referral
to United States Department of Justice.
Subpart H—Procedures
560.801 Procedures.
560.802 Delegation by the Secretary of the
Treasury.
560.803 [Reserved]
Subpart I—Paperwork Reduction Act
560.901 Paperwork Reduction Act notice.
Appendix A to Part 560 [Reserved]
Appendix B to Part 560—Bulk Agricultural
Commodities
Appendix C to Part 560 [Reserved]
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);
Pub. L. 112–81, 125 Stat. 1298; 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
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6659, February 8, 2012; E.O. 13628, 77 FR
62139, October 12, 2012.
(b) Any conspiracy formed to violate
any of the prohibitions set forth in this
part is prohibited.
Subpart A—Relation of This Part to
Other Laws and Regulations
§ 560.204 Prohibited exportation,
reexportation, sale, or supply of goods,
technology, or services to Iran.
§ 560.101 Relation of this part to other
laws and regulations.
This part is separate from, and
independent of, the other parts of this
chapter, including part 535 of this
chapter, ‘‘Iranian Assets Control
Regulations,’’ part 561 of this chapter,
‘‘Iranian Financial Sanctions
Regulations,’’ and part 562 of this
chapter, ‘‘Iranian Human Rights Abuses
Sanctions Regulations,’’ with the
exception of part 501 of this chapter, the
recordkeeping and reporting
requirements and license application
and other procedures of which apply to
this part. Actions taken pursuant to part
501 of this chapter with respect to the
prohibitions contained in this part are
considered actions taken pursuant to
this part. Differing foreign policy and
national security circumstances may
result in differing interpretations of
similar language among the parts of this
chapter. No license or authorization
contained in or issued pursuant to those
other parts authorizes any transaction
prohibited by this part. No license or
authorization contained in or issued
pursuant to any other provision of law
or regulation authorizes any transaction
prohibited by this part. No license or
authorization contained in or issued
pursuant to this part relieves the
involved parties from complying with
any other applicable laws or regulations.
Subpart B—Prohibitions
§ 560.201 Prohibited importation of goods
or services from Iran.
Except as otherwise authorized
pursuant to this part, and
notwithstanding any contract entered
into or any license or permit granted
prior to May 7, 1995, the importation
into the United States of any goods or
services of Iranian origin or owned or
controlled by the Government of Iran,
other than information and
informational materials within the
meaning of section 203(b)(3) of the
International Emergency Economic
Powers Act (50 U.S.C. 1702(b)(3)), is
prohibited.
§ 560.202
[Reserved]
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§ 560.203 Evasions; attempts; causing
violations; conspiracies.
(a) Any transaction on or after the
effective date that evades or avoids, has
the purpose of evading or avoiding,
causes a violation of, or attempts to
violate any of the prohibitions set forth
in this part is prohibited.
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Except as otherwise authorized
pursuant to this part, and
notwithstanding any contract entered
into or any license or permit granted
prior to May 7, 1995, the exportation,
reexportation, sale, or supply, directly
or indirectly, from the United States, or
by a United States person, wherever
located, of any goods, technology, or
services to Iran or the Government of
Iran is prohibited, including the
exportation, reexportation, sale, or
supply of any goods, technology, or
services to a person in a third country
undertaken with knowledge or reason to
know that:
(a) Such goods, technology, or
services are intended specifically for
supply, transshipment, or reexportation,
directly or indirectly, to Iran or the
Government of Iran; or
(b) Such goods, technology, or
services are intended specifically for use
in the production of, for commingling
with, or for incorporation into goods,
technology, or services to be directly or
indirectly supplied, transshipped, or
reexported exclusively or
predominantly to Iran or the
Government of Iran.
§ 560.205 Prohibited reexportation of
goods, technology, or services to Iran or
the Government of Iran by persons other
than United States persons; exceptions.
(a) Except as otherwise authorized
pursuant to this part, and
notwithstanding any contract entered
into or any license or permit granted
prior to May 7, 1995, the reexportation
from a third country, directly or
indirectly, by a person other than a
United States person, of any goods,
technology, or services that have been
exported from the United States is
prohibited, if:
(1) Undertaken with knowledge or
reason to know that the reexportation is
intended specifically for Iran or the
Government of Iran; and
(2) The exportation of such goods,
technology, or services from the United
States to Iran was subject to export
license application requirements under
any United States regulations in effect
on May 6, 1995, or thereafter is made
subject to such requirements imposed
independently of this part (see
§ 560.414).
(b) The prohibitions of paragraph (a)
of this section shall not apply to those
goods or that technology subject to
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export license application requirements
if such goods or technology have been:
(1) Substantially transformed into a
foreign-made product outside the
United States; or
(2) Incorporated into a foreign-made
product outside the United States if the
aggregate value of such goods and
technology described in paragraph (a)(2)
of this section constitutes less than 10
percent of the total value of the foreignmade product to be exported from a
third country (see § 560.420).
Note to § 560.205(b): The reexportation of
U.S.-origin goods or technology, including
U.S.-origin goods or technology that have
been incorporated or substantially
transformed into a foreign-made product, not
prohibited by this section, may require
authorization by the U.S. Department of
Commerce under the Export Administration
Regulations (15 CFR parts 730–774) or by the
U.S. State Department under the
International Traffic in Arms Regulations (22
CFR 123.9).
(c) Reexportation by United States
persons or from the United States is
governed by other sections in this part,
including §§ 560.204 and 560.206.
§ 560.206 Prohibited trade-related
transactions with Iran; goods, technology,
or services.
(a) Except as otherwise authorized
pursuant to this part, and
notwithstanding any contract entered
into or any license or permit granted
prior to May 7, 1995, no United States
person, wherever located, may engage in
any transaction or dealing in or related
to:
(1) Goods or services of Iranian origin
or owned or controlled by the
Government of Iran; or
(2) Goods, technology, or services for
exportation, reexportation, sale or
supply, directly or indirectly, to Iran or
the Government of Iran.
(b) For purposes of paragraph (a) of
this section, the term transaction or
dealing includes but is not limited to
purchasing, selling, transporting,
swapping, brokering, approving,
financing, facilitating, or guaranteeing.
§ 560.207
Prohibited investment.
Except as otherwise authorized
pursuant to this part, and
notwithstanding any contract entered
into or any license or permit granted
prior to May 7, 1995, any new
investment by a United States person in
Iran or in property (including entities)
owned or controlled by the Government
of Iran is prohibited.
§ 560.208 Prohibited facilitation by United
States persons of transactions by foreign
persons.
Except as otherwise authorized
pursuant to this part, and
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notwithstanding any contract entered
into or any license or permit granted
prior to May 7, 1995, no United States
person, wherever located, may approve,
finance, facilitate, or guarantee any
transaction by a foreign person where
the transaction by that foreign person
would be prohibited by this part if
performed by a United States person or
within the United States.
§ 560.209 Prohibited transactions with
respect to the development of Iranian
petroleum resources.
Except as otherwise authorized, and
notwithstanding any contract entered
into or any license or permit granted
prior to March 16, 1995, the following
are prohibited:
(a) The entry into or performance by
a United States person, or the approval
by a United States person of the entry
into or performance by an entity owned
or controlled by a United States person,
of:
(1) A contract that includes overall
supervision and management
responsibility for the development of
petroleum resources located in Iran, or
(2) A guaranty of another person’s
performance under such contract; or
(b) The entry into or performance by
a United States person, or the approval
by a United States person of the entry
into or performance by an entity owned
or controlled by a United States person,
of:
(1) A contract for the financing of the
development of petroleum resources
located in Iran, or
(2) A guaranty of another person’s
performance under such a contract.
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§ 560.210
Exempt transactions.
(a) Personal communications. The
prohibitions contained in this part do
not apply to any postal, telegraphic,
telephonic, or other personal
communication that does not involve
the transfer of anything of value.
(b) Humanitarian donations. The
prohibitions of §§ 560.204 and 560.206
do not apply to donations by United
States persons of articles, such as food,
clothing, and medicine, intended to be
used to relieve human suffering.
(c) Information or informational
materials. (1) The prohibitions
contained in this part do not apply to
the importation from any country and
the exportation to any country of
information or informational materials,
as defined in § 560.315, whether
commercial or otherwise, regardless of
format or medium of transmission.
(2) This section does not exempt from
regulation or authorize transactions
related to information or informational
materials not fully created and in
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existence at the date of the transactions,
or to the substantive or artistic alteration
or enhancement of informational
materials, or to the provision of
marketing and business consulting
services. Such prohibited transactions
include, but are not limited to, payment
of advances for information or
informational materials not yet created
and completed (with the exception of
prepaid subscriptions for widely
circulated magazines and other
periodical publications); provision of
services to market, produce or coproduce, create, or assist in the creation
of information or informational
materials; and payment of royalties with
respect to income received for
enhancements or alterations made by
U.S. persons to such information or
informational materials.
(3) This section does not exempt or
authorize transactions incident to the
exportation of software subject to the
Export Administration Regulations, 15
CFR parts 730 through 774, or to the
exportation of goods (including
software) or technology for use in the
transmission of any data, or to the
provision, sale, or leasing of capacity on
telecommunications transmission
facilities (such as satellite or terrestrial
network connectivity) for use in the
transmission of any data. The
exportation of such items or services
and the provision, sale, or leasing of
such capacity or facilities to Iran, the
Government of Iran, an Iranian financial
institution, or any other person whose
property and interests in property are
blocked pursuant to § 560.211 are
prohibited.
Note to paragraph (c)(3) of § 560.210: See
§ 560.540 of this part for a general license
authorizing the exportation to persons in Iran
of certain services and software incident to
the exchange of personal communications
over the Internet.
(d) Travel. The prohibitions contained
in this part do not apply to transactions
ordinarily incident to travel to or from
any country, including importation or
exportation of accompanied baggage for
personal use, maintenance within any
country including payment of living
expenses and acquisition of goods or
services for personal use, and
arrangement or facilitation of such
travel including nonscheduled air, sea,
or land voyages.
(e) Official Business. The prohibitions
in § 560.211 do not apply to transactions
for the conduct of the official business
of the Federal Government by
employees, grantees, or contractors
thereof.
(f) The prohibitions in § 560.211 do
not apply to property and interests in
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64669
property of the Government of Iran that
were blocked pursuant to Executive
Order 12170 of November 14, 1979, and
thereafter made subject to the transfer
directives set forth in Executive Order
12281 of January 19, 1981, and
implementing regulations thereunder.
§ 560.211 Prohibited transactions
involving blocked property.
(a) All property and interests in
property of the Government of Iran,
including the Central Bank of Iran, 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 United
States person, including any foreign
branch, are blocked and may not be
transferred, paid, exported, withdrawn,
or otherwise dealt in.
(b) All property and interests in
property of any Iranian financial
institution, including the Central Bank
of Iran, 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
United States person, including any
foreign branch, are blocked and may not
be transferred, paid, exported,
withdrawn, or otherwise dealt in.
(c) 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
United States person, including any
foreign branch, of the following persons
are blocked and may not be transferred,
paid, exported, withdrawn, or otherwise
dealt in: any person determined by the
Secretary of the Treasury, in
consultation with the Secretary of State,
to be owned or controlled by, or to have
acted or purported to act for or on behalf
of, directly or indirectly, any person
whose property and interests in
property are blocked pursuant to
paragraphs (a) through (c) of this
section.
Note 1 to paragraphs (a) through (c) of
§ 560.211: The names of persons identified as
already blocked or designated for blocking
pursuant to Executive Order 13599 of
February 5, 2012, whose property and
interests in property therefore are blocked
pursuant to this section, are published in the
Federal Register and incorporated into the
Office of Foreign Assets Control’s Specially
Designated Nationals and Blocked Persons
List (‘‘SDN List’’) with the identifier
‘‘[IRAN].’’ The SDN List is accessible through
the following page on the Office of Foreign
Control’s Web site: www.treasury.gov/sdn.
Additional information pertaining to the SDN
List can be found in Appendix A to this
chapter. See § 560.425 concerning entities
that may not be listed on the SDN List but
whose property and interests in property are
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nevertheless blocked pursuant to this section.
Executive Order 13599 blocks the property
and interests in property of the Government
of Iran and Iranian financial institutions, as
defined in § 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
SDN List.
Note 2 to paragraph (a) through (c) of
§ 560.211: The International Emergency
Economic Powers Act (50 U.S.C. 1701–1706)
(‘‘IEEPA’’), 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 SDN List with the identifier ‘‘[BPI–
IRAN].’’
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Note 3 to paragraph (a) through (c) of
§ 560.211: Sections 501.806 and 501.807 of
this chapter describe the procedures to be
followed by persons seeking, respectively,
the unblocking of funds that they believe
were blocked due to mistaken identity, or
administrative reconsideration of their status
as the Government of Iran, an Iranian
financial institution, or any other person
whose property and interests in property are
blocked pursuant to this section.
(d) The prohibitions in paragraphs (a)
through (c) of this section include, but
are not limited to, prohibitions on the
following transactions:
(1) The making of any contribution or
provision of funds, goods, or services
by, to, or for the benefit of any person
whose property and interests in
property are blocked pursuant to
paragraphs (a) through (c) of this
section; and
(2) The receipt of any contribution or
provision of funds, goods, or services
from any person whose property and
interests in property are blocked
pursuant to paragraphs (a) through (c) of
this section.
(e) Unless authorized by this part or
by a specific license expressly referring
to this section, any dealing in any
security (or evidence thereof) held
within the possession or control of a
U.S. person and either registered or
inscribed in the name of, or known to
be held for the benefit of, or issued by,
the Government of Iran, an Iranian
financial institution, or any other person
whose property and interests in
property are blocked pursuant to this
section is prohibited. This prohibition
includes but is not limited to the
transfer (including the transfer on the
books of any issuer or agent thereof),
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disposition, transportation, importation,
exportation, or withdrawal of, or the
endorsement or guaranty of signatures
on, any such security on or after the
effective date. This prohibition applies
irrespective of the fact that at any time
(whether prior to, on, or subsequent to
the effective date) the registered or
inscribed owner of any such security
may have or might appear to have
assigned, transferred, or otherwise
disposed of the security.
(f) The prohibitions in paragraphs (a)
through (c) of this section apply except
to the extent transactions are authorized
by regulations, orders, directives,
rulings, instructions, licenses, or
otherwise, and notwithstanding any
contracts entered into or any license or
permit granted prior to the effective
date.
§ 560.212 Effect of transfers violating the
provisions of this part.
(a) Any transfer after the effective date
that is in violation of any provision of
this part or of any regulation, order,
directive, ruling, instruction, or license
issued pursuant to this part, and that
involves any property or interest in
property blocked pursuant to § 560.211,
is null and void and shall not be the
basis for the assertion or recognition of
any interest in or right, remedy, power,
or privilege with respect to such
property or property interests.
(b) No transfer before the effective
date shall be the basis for the assertion
or recognition of any right, remedy,
power, or privilege with respect to, or
any interest in, any property or interest
in property blocked pursuant to
§ 560.211, unless the person who holds
or maintains such property, prior to that
date, had written notice of the transfer
or by any written evidence had
recognized such transfer.
(c) Unless otherwise provided, a
license or other authorization issued by
the Office of Foreign Assets Control
before, during, or after a transfer shall
validate such transfer or make it
enforceable to the same extent that it
would be valid or enforceable but for
the provisions of this part and any
regulation, order, directive, ruling,
instruction, or license issued pursuant
to this part.
(d) Transfers of property that
otherwise would be null and void or
unenforceable by virtue of the
provisions of this section shall not be
deemed to be null and void or
unenforceable as to any person with
whom such property is or was held or
maintained (and as to such person only)
in cases in which such person is able to
establish to the satisfaction of the Office
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of Foreign Assets Control each of the
following:
(1) Such transfer did not represent a
willful violation of the provisions of this
part by the person with whom such
property is or was held or maintained
(and as to such person only);
(2) The person with whom such
property is or was held or maintained
did not have reasonable cause to know
or suspect, in view of all the facts and
circumstances known or available to
such person, that such transfer required
a license or authorization issued
pursuant to this part and was not so
licensed or authorized, or, if a license or
authorization did purport to cover the
transfer, that such license or
authorization had been obtained by
misrepresentation of a third party or
withholding of material facts or was
otherwise fraudulently obtained; and
(3) The person with whom such
property is or was held or maintained
filed with the Office of Foreign Assets
Control a report setting forth in full the
circumstances relating to such transfer
promptly upon discovery that:
(i) Such transfer was in violation of
the provisions of this part or any
regulation, ruling, instruction, license,
or other directive or authorization
issued pursuant to this part;
(ii) Such transfer was not licensed or
authorized by the Office of Foreign
Assets Control; or
(iii) If a license did purport to cover
the transfer, such license had been
obtained by misrepresentation of a third
party or withholding of material facts or
was otherwise fraudulently obtained.
Note to paragraph (d) of § 560.212: The
filing of a report in accordance with the
provisions of paragraph (d)(3) of this section
shall not be deemed evidence that the terms
of paragraphs (d)(1) and (d)(2) of this section
have been satisfied.
(e) Unless licensed pursuant to this
part, any attachment, judgment, decree,
lien, execution, garnishment, or other
judicial process is null and void with
respect to any property and interests in
property blocked pursuant to § 560.211.
§ 560.213 Holding of funds in interestbearing accounts; investment and
reinvestment.
(a) Except as provided in paragraphs
(e) or (f) of this section, or as otherwise
directed by the Office of Foreign Assets
Control, any U.S. person holding funds,
such as currency, bank deposits, or
liquidated financial obligations, subject
to § 560.211 shall hold or place such
funds in a blocked interest-bearing
account located in the United States.
(b)(1) For purposes of this section, the
term blocked interest-bearing account
means a blocked account:
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(i) In a Federally-insured U.S. bank,
thrift institution, or credit union,
provided the funds are earning interest
at rates that are commercially
reasonable; or
(ii) With a broker or dealer registered
with the Securities and Exchange
Commission under the Securities
Exchange Act of 1934 (15 U.S.C. 78a et
seq.), provided the funds are invested in
a money market fund or in U.S.
Treasury bills.
(2) Funds held or placed in a blocked
account pursuant to paragraph (a) of this
section may not be invested in
instruments the maturity of which
exceeds 180 days.
(c) For purposes of this section, a rate
is commercially reasonable if it is the
rate currently offered to other depositors
on deposits or instruments of
comparable size and maturity.
(d) For purposes of this section, if
interest is credited to a separate blocked
account or subaccount, the name of the
account party on each account must be
the same.
(e) Blocked funds held in instruments
the maturity of which exceeds 180 days
at the time the funds become subject to
§ 560.211 may continue to be held until
maturity in the original instrument,
provided any interest, earnings, or other
proceeds derived therefrom are paid
into a blocked interest-bearing account
in accordance with paragraphs (a) or (f)
of this section.
(f) Blocked funds held in accounts or
instruments outside the United States at
the time the funds become subject to
§ 560.211 may continue to be held in the
same type of accounts or instruments,
provided the funds earn interest at rates
that are commercially reasonable.
(g) This section does not create an
affirmative obligation for the holder of
blocked tangible property, such as
chattels or real estate, or of other
blocked property, such as debt or equity
securities, to sell or liquidate such
property. However, the Office of Foreign
Assets Control may issue licenses
permitting or directing such sales or
liquidation in appropriate cases.
(h) Funds subject to this section may
not be held, invested, or reinvested in
a manner that provides immediate
financial or economic benefit or access
to any person whose property and
interests in property are blocked
pursuant to § 560.211, nor may their
holder cooperate in or facilitate the
pledging or other attempted use as
collateral of blocked funds or other
assets.
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§ 560.214 Expenses of maintaining
blocked physical property; liquidation of
blocked property.
(a) Except as otherwise authorized,
and notwithstanding the existence of
any rights or obligations conferred or
imposed by any international agreement
or contract entered into or any license
or permit granted prior to the effective
date, all expenses incident to the
maintenance of physical property
blocked pursuant to § 560.211 shall be
the responsibility of the owners or
operators of such property, which
expenses shall not be met from blocked
funds.
(b) Property blocked pursuant to
§ 560.211 may, in the discretion of the
Office of Foreign Assets Control, be sold
or liquidated and the net proceeds
placed in a blocked interest-bearing
account in the name of the owner of the
property.
Subpart C—General Definitions
§ 560.301
Effective date.
The term effective date refers to the
effective date of the applicable
prohibitions and directives contained in
this part as follows:
(a) With respect to the prohibitions
and directives in § 560.201 and
§§ 560.204 through 560.209 is 12:01
a.m., Eastern Daylight Time, August 20,
1997. For the effective date of preexisting regulations and directives, see
the Executive orders in the Authority
citation for this part and implementing
regulations.
(b) With respect to prohibited
transfers or other dealings in blocked
property and interests in property of the
Government of Iran, as defined in
§ 560.304, and Iranian financial
institutions, as defined in § 560.324,
12:01 a.m. eastern standard time,
February 6, 2012; and
(c) With respect to a person whose
property and interests in property are
otherwise blocked pursuant to
paragraph (c) of § 560.211, the earlier of
the date of actual or constructive notice
that such person’s property and
interests in property are blocked.
§ 560.302
[Reserved].
§ 560.303
Iran; Iranian.
The term Iran means the territory of
Iran and any other territory or marine
area, including the exclusive economic
zone and continental shelf, over which
the Government of Iran claims
sovereignty, sovereign rights, or
jurisdiction, provided that the
Government of Iran exercises partial or
total de facto control over the area or
derives a benefit from economic activity
in the area pursuant to an international
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agreement. The term Iranian means
pertaining to Iran as defined in this
section.
§ 560.304
Government of Iran.
The term Government of Iran
includes:
(a) The state and the Government of
Iran, as well as any political
subdivision, agency, or instrumentality
thereof, including the Central Bank of
Iran;
(b) Any person owned or controlled,
directly or indirectly, by the foregoing;
(c) Any person to the extent that such
person is, or has been, since the
effective date, acting or purporting to
act, directly or indirectly, for or on
behalf of the foregoing; and
(d) Any other person determined by
the Office of Foreign Assets Control to
be included within paragraphs (a)
through (c) of this section.
Note 1 to § 560.304: The names of persons
that OFAC has determined fall within this
definition are published in the Federal
Register and incorporated into the Office of
Foreign Assets Control’s Specially
Designated Nationals and Blocked Persons
List (‘‘SDN List’’) with the identifier
‘‘[IRAN].’’ The SDN List is accessible through
the following page on the Office of Foreign
Assets Control’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 § 560.211 regardless of
whether the names of such persons are
published in the Federal Register or
incorporated into the SDN List.
Note 2 to § 560.304: 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
Government of Iran.
§ 560.305
Person; entity.
(a) The term person means an
individual or entity.
(b) The term entity means a
partnership, association, trust, joint
venture, corporation, group, subgroup,
or other organization.
§ 560.306 Iranian-origin goods or services;
goods or services owned or controlled by
the Government of Iran.
(a) The terms goods of Iranian origin
and Iranian-origin goods include:
(1) Goods grown, produced,
manufactured, extracted, or processed
in Iran; and
(2) Goods which have entered into
Iranian commerce.
(b) The terms services of Iranian
origin and Iranian-origin services
include:
(1) Services performed in Iran or by
an entity organized under the laws of
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Iran or any jurisdiction within Iran, or
a person residing in Iran; and
(2) Services performed outside Iran by
a citizen, national or permanent resident
of Iran who is ordinarily resident in
Iran, or by an entity organized under the
laws of Iran or any jurisdiction within
Iran.
(c) The term goods or services owned
or controlled by the Government of Iran
includes:
(1) Goods grown, produced,
manufactured, extracted or processed by
the Government of Iran or goods in its
possession or control; and
(2) Services performed by the
Government of Iran.
(d) The terms services of Iranianorigin, Iranian-origin services, and
services owned or controlled by the
Government of Iran do not include:
(1) Diplomatic and consular services
performed by or on behalf of the
Government of Iran;
(2) Diplomatic and consular services
performed by or on behalf of the
Government of the United States; or
(3) Services performed outside Iran by
an Iranian citizen or national who is
resident in the United States or a third
country, provided such services are not
performed by or on behalf of the
Government of Iran (other than
diplomatic and consular services), an
entity organized under the laws of Iran
or any jurisdiction within Iran, or a
person located in Iran.
§ 560.307
United States.
The term United States means the
United States, its territories and
possessions, and all areas under the
jurisdiction or authority thereof.
subpart E of this part but issued
pursuant to this part.
§ 560.313 Entity owned or controlled by
the Government of Iran.
The term entity owned or controlled
by the Government of Iran includes any
corporation, partnership, association, or
other entity in which the Government of
Iran owns a 50 percent or greater
interest or a controlling interest, and
any entity which is otherwise controlled
by that government.
§ 560.314
person.
United States person; U.S.
The term United States person or U.S.
person means any United States citizen,
permanent resident alien, entity
organized under the laws of the United
States or any jurisdiction within the
United States (including foreign
branches), or any person in the United
States.
§ 560.315 Information or informational
materials.
(a) For purposes of this part, the term
information or informational materials
includes, but is not limited to,
publications, films, posters, phonograph
records, photographs, microfilms,
microfiche, tapes, compact disks, CD
ROMs, artworks, and news wire feeds.
Note to paragraph (a) of § 560.315: To be
considered information or informational
materials, artworks must be classified under
chapter heading 9701, 9702, or 9703 of the
Harmonized Tariff Schedule of the United
States.
(b) The term information or
informational materials, with respect to
exports, does not include items:
(1) That were, as of April 30, 1994, or
§ 560.308 Importation of goods.
that thereafter become, controlled for
With respect to goods (including
export pursuant to section 5 of the
software), the term importation means
Export Administration Act of 1979 (50
the bringing of any goods into the
U.S.C. App. 2401–2420, the ‘‘EAA’’), or
United States, except that in the case of
section 6 of the EAA to the extent that
goods transported by vessel, importation such controls promote the
means the bringing of any goods into the nonproliferation or antiterrorism
United States with the intent to unlade
policies of the United States; or
them.
(2) With respect to which acts are
prohibited by 18 U.S.C. chapter 37.
§ 560.309 [Reserved]
§ 560.310
§ 560.316
License.
Except as otherwise specified, the
term license means any license or
authorization contained in or issued
pursuant to this part.
srobinson on DSK4SPTVN1PROD with
§ 560.311
General license.
The term general license means any
license or authorization the terms of
which are set forth in subpart E of this
part.
§ 560.312
Specific license.
The term specific license means any
license or authorization not set forth in
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New investment.
The term new investment means a
transaction after 12:01 Eastern Daylight
Time, May 7, 1995, that constitutes:
(a) A commitment or contribution of
funds or other assets; or
(b) A loan or other extension of credit,
as defined in § 560.317.
§ 560.317
Credits or loans.
The term credits or loans means any
transfer or extension of funds or credit
on a basis of an obligation to repay, or
any assumption or guarantee of the
obligation of another to repay an
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extension of funds or credit, including
but not limited to: Overdrafts; currency
swaps; purchases of debt securities
issued by the Government of Iran;
purchases of a loan made by another
person; sales of financial assets subject
to an agreement to repurchase; renewals
or refinancings whereby funds or credits
are transferred to or extended to a
prohibited borrower or prohibited
recipient; the issuance of standby letters
of credit; and drawdowns on existing
lines of credit.
§ 560.318
[Reserved]
§ 560.319 United States depository
institution.
The term United States depository
institution means any entity (including
its foreign branches) organized under
the laws of the United States or any
jurisdiction within the United States, or
any agency, office, or branch located in
the United States of a foreign entity, that
is engaged primarily in the business of
banking (for example, banks, savings
banks, savings associations, credit
unions, trust companies, and United
States bank holding companies).
§ 560.320
Iranian accounts.
The term Iranian accounts means
accounts of persons who are ordinarily
resident in Iran, except when such
persons are not located in Iran, or of the
Government of Iran, an Iranian financial
institution, or any other person whose
property and interests in property are
blocked pursuant to § 560.211 of this
part, maintained on the books of either
a United States depository institution or
a United States registered broker or
dealer in securities.
§ 560.321 United States registered broker
or dealer in securities.
The term United States registered
broker or dealer in securities means any
U.S. citizen, permanent resident alien,
or entity organized under the laws of the
United States or of any jurisdiction
within the United States (including its
foreign branches), or any agency, office
or branch of a foreign entity located in
the United States, that:
(a) Is a ‘‘broker’’ or ‘‘dealer’’ in
securities within the meanings set forth
in the Securities Exchange Act of 1934;
(b) Holds or clears customer accounts;
and
(c) Is registered with the Securities
and Exchange Commission under the
Securities Exchange Act of 1934.
§ 560.322
property.
Blocked account; blocked
The terms blocked account and
blocked property shall mean any
account or property subject to the
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prohibitions in § 560.211 held in the
name of the Government of Iran, any
Iranian financial institution, or any
other person whose property and
interests in property are blocked
pursuant to § 560.211, or in which the
Government of Iran, an Iranian financial
institution, or such person has an
interest, and with respect to which
payments, transfers, exportations,
withdrawals, or other dealings may not
be made or effected except pursuant to
an authorization or license from the
Office of Foreign Assets Control
expressly authorizing such action.
Note to § 560.322: See § 560.425
concerning the blocked status of property
and interests in property of an entity that is
50 percent or more owned by a person whose
property and interests in property are
blocked pursuant to § 560.211.
§ 560.323
Interest.
Except as otherwise provided in this
part, the term interest, when used with
respect to property (e.g., ‘‘an interest in
property’’), means an interest of any
nature whatsoever, direct or indirect.
§ 560.324
Iranian financial institution.
The term Iranian financial institution
means any entity (including foreign
branches), wherever located, organized
under the laws of Iran or any
jurisdiction within Iran, or owned or
controlled by the Government of Iran, or
in Iran, or owned or controlled by any
of the foregoing, that is engaged in the
business of accepting deposits, making,
granting, transferring, holding, or
brokering loans or credits, or purchasing
or selling foreign exchange, securities,
commodity futures or options, or
procuring purchasers and sellers
thereof, as principal or agent. It includes
but is not limited to depository
institutions, banks, savings banks,
money service businesses, trust
companies, insurance companies,
securities brokers and dealers,
commodity futures and options brokers
and dealers, forward contract and
foreign exchange merchants, securities
and commodities exchanges, clearing
corporations, investment companies,
employee benefit plans, and holding
companies, affiliates, or subsidiaries of
any of the foregoing.
srobinson on DSK4SPTVN1PROD with
§ 560.325
Property; property interest.
The terms property and property
interest include, but are not limited to,
money, checks, drafts, bullion, bank
deposits, savings accounts, debts,
indebtedness, obligations, notes,
guarantees, debentures, stocks, bonds,
coupons, any other financial
instruments, bankers acceptances,
mortgages, pledges, liens or other rights
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in the nature of security, warehouse
receipts, bills of lading, trust receipts,
bills of sale, any other evidences of title,
ownership or indebtedness, letters of
credit and any documents relating to
any rights or obligations thereunder,
powers of attorney, goods, wares,
merchandise, chattels, stocks on hand,
ships, goods on ships, real estate
mortgages, deeds of trust, vendors’ sales
agreements, land contracts, leaseholds,
ground rents, real estate and any other
interest therein, options, negotiable
instruments, trade acceptances,
royalties, book accounts, accounts
payable, judgments, patents, trademarks
or copyrights, insurance policies, safe
deposit boxes and their contents,
annuities, pooling agreements, services
of any nature whatsoever, contracts of
any nature whatsoever, and any other
property, real, personal, or mixed,
tangible or intangible, or interest or
interests therein, present, future, or
contingent.
§ 560.326
64673
business of accepting deposits, making,
granting, transferring, holding, or
brokering loans or credits, or purchasing
or selling foreign exchange, securities,
commodity futures or options, or
procuring purchasers and sellers
thereof, as principal or agent. It includes
but is not limited to depository
institutions, banks, savings banks, trust
companies, securities brokers and
dealers, commodity futures and options
brokers and dealers, forward contract
and foreign exchange merchants,
securities and commodities exchanges,
clearing corporations, investment
companies, employee benefit plans, and
U.S. holding companies, U.S. affiliates,
or U.S. subsidiaries of any of the
foregoing. This term includes those
branches, offices, and agencies of
foreign financial institutions that are
located in the United States, but not
such institutions’ foreign branches,
offices, or agencies.
Subpart D—Interpretations
Transfer.
The term transfer means any actual or
purported act or transaction, whether or
not evidenced by writing, and whether
or not done or performed within the
United States, the purpose, intent, or
effect of which is to create, surrender,
release, convey, transfer, or alter,
directly or indirectly, any right, remedy,
power, privilege, or interest with respect
to any property. Without limitation on
the foregoing, it shall include the
making, execution, or delivery of any
assignment, power, conveyance, check,
declaration, deed, deed of trust, power
of attorney, power of appointment, bill
of sale, mortgage, receipt, agreement,
contract, certificate, gift, sale, affidavit,
or statement; the making of any
payment; the setting off of any
obligation or credit; the appointment of
any agent, trustee, or fiduciary; the
creation or transfer of any lien; the
issuance, docketing, filing, or levy of or
under any judgment, decree,
attachment, injunction, execution, or
other judicial or administrative process
or order, or the service of any
garnishment; the acquisition of any
interest of any nature whatsoever by
reason of a judgment or decree of any
foreign country; the fulfillment of any
condition; the exercise of any power of
appointment, power of attorney, or
other power; or the acquisition,
disposition, transportation, importation,
exportation, or withdrawal of any
security.
§ 560.401
§ 560.327
§ 560.405 Transactions ordinarily incident
to a licensed transaction authorized.
U.S. financial institution.
The term U.S. financial institution
means any U.S. entity (including its
foreign branches) that is engaged in the
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Reference to amended sections.
Except as otherwise specified,
reference to any provision in or
appendix to this part or chapter or to
any regulation, ruling, order,
instruction, directive, or license issued
pursuant to this part refers to the same
as currently amended.
§ 560.402
Effect of amendment.
Unless otherwise specifically
provided, any amendment,
modification, or revocation of any
provision in or appendix to this part or
chapter or of any order, regulation,
ruling, instruction, or license issued by
the Office of Foreign Assets Control
does not affect any act done or omitted,
or any civil or criminal proceeding
commenced or pending, prior to such
amendment, modification, or
revocation. All penalties, forfeitures,
and liabilities under any such order,
regulation, ruling, instruction, or license
continue and may be enforced as if such
amendment, modification, or revocation
had not been made.
§ 560.403 Transshipment or transit
through Iran.
The prohibitions in §§ 560.204,
560.206, and 560.208 apply to export,
reexport or supply transactions which
require a transshipment or transit of
goods or technology through Iran to
third countries.
§ 560.404
[Reserved]
Any transaction ordinarily incident to
a licensed transaction and necessary to
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give effect thereto is also authorized,
except:
(a) An ordinarily incident transaction,
not explicitly authorized within the
terms of the license, involving a debit to
a blocked account or a transfer of
blocked property;
(b) Payments or transfers of funds;
Note to paragraph (b) of § 560.405: See
§ 560.516 for a general license authorizing
United States depository institutions or
United States registered brokers or dealers in
securities to process transfers of funds if the
transfer arises from, and is ordinarily
incident and necessary to give effect to, an
underlying transaction authorized by a
specific or general license issued pursuant to,
or set forth in, this part.
(c) Provision of any transportation
services to or from Iran not explicitly
authorized in or pursuant to this part
other than loading, transporting, and
discharging licensed or exempt cargo
there;
(d) Distribution or leasing in Iran of
any containers or similar goods owned
or controlled by United States persons
after the performance of transportation
services to Iran; and
(e) Financing of sales for the
exportation or reexportation of
agricultural commodities, medicine, and
medical devices that is authorized by
general or specific license pursuant to
§ 560.530.
Note to paragraph (e) of § 560.405: See
§ 560.530(a)(2) and (a)(3) for general licenses
authorizing, with certain exceptions, the
exportation or reexportation of food,
medicine, and generally licensed medical
devices to the Government of Iran,
individuals or entities in Iran, or persons in
third countries purchasing specifically for
resale to any of the foregoing. These general
licenses also authorize the conduct of related
transactions, including, but not limited to,
financing and payment, provided that
payment terms and financing are limited to,
and consistent with, those authorized by
§ 560.532. Also, see § 560.532 for a general
license for payment terms for sales
authorized by one of the general licenses set
forth in paragraphs (a)(2) and (a)(3) of
§ 560.530 or by a specific license issued
pursuant to paragraph (a)(1) of the same
section.
srobinson on DSK4SPTVN1PROD with
§ 560.406 Transshipment or transit
through the United States.
(a) The prohibitions in § 560.201
apply to the importation into the United
States, for transshipment or transit, of
Iranian-origin goods or goods owned or
controlled by the Government of Iran
which are intended or destined for third
countries.
(b) The prohibitions in § 560.204
apply to the transshipment or transit of
foreign goods through the United States
which are intended or destined for Iran
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or the Government of Iran, including
entities owned or controlled by the
Government of Iran.
(c) Goods in which the Government of
Iran, any Iranian financial institution, or
any other person whose property and
interests in property are blocked
pursuant to § 560.211 has an interest
which are imported into or transshipped
through the United States are subject to
the prohibitions in § 560.211.
§ 560.407 Transactions related to Iranianorigin goods.
(a) Importation into the United States
from third countries of goods containing
Iranian-origin raw materials or
components and transactions relating to
such goods are not prohibited by
§ 560.201 or § 560.206 if those raw
materials or components have been
incorporated into manufactured
products or substantially transformed in
a third country by a person other than
a United States person.
(b) Transactions relating to Iranianorigin goods that have not been
incorporated into manufactured
products or substantially transformed in
a third country are prohibited.
§ 560.408 Importation into and release
from a bonded warehouse or foreign trade
zone.
The prohibitions in § 560.201 apply to
importation into a bonded warehouse or
a foreign trade zone of the United States.
§ 560.409
[Reserved]
§ 560.410
Provision of services.
(a) The prohibition on the
exportation, reexportation, sale or
supply of services contained in
§ 560.204 applies to services performed
on behalf of a person in Iran or the
Government of Iran or where the benefit
of such services is otherwise received in
Iran, if such services are performed:
(1) In the United States, or
(2) Outside the United States by a
United States person, including by an
overseas branch of an entity located in
the United States.
(b) The benefit of services performed
anywhere in the world on behalf of the
Government of Iran is presumed to be
received in Iran.
(c) The prohibitions on transactions
involving blocked property contained in
§ 560.211 apply to services performed in
the United States or by U.S. persons,
wherever located, including by an
overseas branch of an entity located in
the United States:
(1) On behalf of or for the benefit of
the Government of Iran, an Iranian
financial institution, or any other person
whose property and interests in
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property are blocked pursuant to
§ 560.211; or
(2) With respect to property interests
of the Government of Iran, an Iranian
financial institution, or any other person
whose property and interests in
property are blocked pursuant to
§ 560.211.
(d) Example. A United States person
is engaged in a prohibited exportation of
services to Iran when it extends credit
to a third-country firm specifically to
enable that firm to manufacture goods
for sale to Iran or for an entity of the
Government of Iran. See also § 560.416.
§ 560.411
[Reserved]
§ 560.412
Iran.
Extensions of credit or loans to
(a) The prohibitions contained in
§§ 560.204 and 560.207 apply to but are
not limited to the unauthorized renewal
or rescheduling of credits or loans in
existence as of May 6, 1995, such as the
extension of a standby letter of credit.
(b) The prohibitions contained in
§ 560.209 apply, among other things, to
the unauthorized renewal or
rescheduling of credits or loans in
existence as of March 15, 1995.
(c) The prohibitions contained in
§§ 560.204, 560.207 and 560.209 apply
to, among other things, credits or loans
in any currency.
§ 560.413
[Reserved]
§ 560.414 Reexportation of certain U.S.origin goods exported prior to May 7, 1995.
The prohibitions on reexportation in
§ 560.205 do not apply to United Statesorigin goods or technology that were
exported from the United States prior to
12:01 a.m., Eastern Daylight Time, May
7, 1995, if:
(a) Such goods or technology were not
the property of a United States person
as of 12:01 a.m. Eastern Daylight Time,
May 7, 1995; and
(b) The reexportation of the U.S.origin goods or technology to Iran or the
Government of Iran was not subject to
reexport (as opposed to export) license
application requirements under U.S.
regulations in effect prior to May 6,
1995.
Note 1 to § 560.414: The exclusion in this
section applies, among other things, to goods
that were as of May 6, 1995, classified under
the U.S. Department of Commerce’s Export
Administration Regulations (15 CFR parts
730 through 774) as ECCNs 2A994; 3A993;
5A992; 5A995; 6A990; 6A994; 7A994;
8A992; 8A994; 9A990; 9A992; and 9A994,
that were exported from the United States
prior to 12:01 a.m. Eastern Daylight Time,
May 7, 1995, and were not the property of
a United States person as of 12:01 a.m.
Eastern Daylight Time, May 7, 1995. As of
April 26, 1999, items covered by this note are
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classified under ECCNs 2A994; 3A992.a;
5A991.f; 5A992.a and .c; 6A991; 6A998.a;
7A994; 8A992.d, .e, .f and .g; 9A990.a and .b;
and 9A991.d and .e.
Note 2 to § 560.414: A reexportation of
U.S.-origin goods or technology which meets
the conditions of paragraph (a) of this
section, or which is not within the scope of
§ 560.205, nevertheless may require specific
authorization by other agencies of the U.S.
Government for reexportation to Iran or the
Government of Iran. For example, items
which meet the conditions of paragraph (a)
may nevertheless require an export license
under the End User and End Use Control
Policies found in provisions of the Export
Administration Regulations (15 CFR part
744).
§ 560.415
[Reserved]
§ 560.416
Brokering services.
(a) For purposes of the prohibitions in
§§ 560.201, 560.204, 560.205, 560.206,
and 560.208, the term services includes
performing a brokering function.
(b) Examples. A person within the
United States, or a United States person,
wherever located, may not:
(1) Act as broker for the provision of
goods, services or technology, from
whatever source, to or from Iran or the
Government of Iran;
(2) Act as broker for the purchase or
swap of crude oil of Iranian origin or
owned or controlled by the Government
of Iran;
(3) Act as broker for the provision of
financing, a financial guarantee or an
extension of credit by any person to Iran
or the Government of Iran;
(4) Act as a broker for the provision
of financing, a financial guarantee or an
extension of credit to any person
specifically to enable that person to
construct or operate a facility in Iran or
owned or controlled by the Government
of Iran; or
(5) Act as a broker for the provision
of financing, a financial guarantee, or an
extension of credit to any person
specifically to enable that person to
provide goods, services, or technology
intended for Iran or the Government of
Iran.
srobinson on DSK4SPTVN1PROD with
§ 560.417 Facilitation; change of policies
and procedures; referral of business
opportunities offshore.
With respect to § 560.208, a
prohibited facilitation or approval of a
transaction by a foreign person occurs,
among other instances, when a United
States person:
(a) Alters its operating policies or
procedures, or those of a foreign
affiliate, to permit a foreign affiliate to
accept or perform a specific contract,
engagement or transaction involving
Iran or the Government of Iran without
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the approval of the United States
person, where such transaction
previously required approval by the
United States person and such
transaction by the foreign affiliate
would be prohibited by this part if
performed directly by a United States
person or from the United States;
(b) Refers to a foreign person purchase
orders, requests for bids, or similar
business opportunities involving Iran or
the Government of Iran to which the
United States person could not directly
respond as a result of the prohibitions
contained in this part; or
(c) Changes the operating policies and
procedures of a particular affiliate with
the specific purpose of facilitating
transactions that would be prohibited by
this part if performed by a United States
person or from the United States.
§ 560.418 Release of technology or
software in the United States or a third
country.
The release of technology or software
in the United States, or by a United
States person wherever located, to any
person violates the prohibitions of this
part if made with knowledge or reason
to know the technology is intended for
Iran or the Government of Iran, unless
that technology or software meets the
definition of information and
informational materials in § 560.315.
Note 1 to § 560.418: The release of
technology or software in the United States,
or the release of U.S. origin technology or
software in a third country, to a foreign
national may require a license from the U.S.
Department of Commerce’s Bureau of
Industry and Security under the Export
Administration Regulations, 15 CFR parts
730 through 774 (the ‘‘EAR’’). The EAR
require a license for such release if both of
the following conditions are met:
(a) That technology or software would
require a license for exportation (or
reexportation) to the home country of the
foreign national; and
(b) The foreign national is not a citizen or
permanent resident of the United States (or
of the third country) or is not a protected
individual under the Immigration and
Naturalization Act (8 U.S.C. Sec.
1324(b)(a)(3)). See 15 CFR 734.2(b)(2)(ii) and
734.2(b)(5).
Note 2 to § 560.418: The transfer to a
foreign national of technology subject to
regulations administered by the U.S.
Department of State or other agencies of the
U.S. Government may require authorization
by those agencies.
64675
employment on behalf of an entity in
Iran or as the employee of a U.S. person,
unless authorized pursuant to § 560.505.
See also § 560.418 with respect to the
release of technology and software.
§ 560.420 Reexportation by non-U.S.
persons of certain foreign-made products
containing U.S.-origin goods or technology.
For purposes of satisfying the de
minimis content rule in § 560.205(b)(2):
(a) U.S.-origin goods (excluding
software) falling within the definition in
§ 560.205 must comprise less than 10
percent of the total value of the foreignmade good (excluding software);
(b) U.S.-origin software falling within
the definition in § 560.205 must
comprise less than 10 percent of the
total value of the foreign-made software;
(c) U.S.-origin technology falling
within the definition in § 560.205 must
comprise less than 10 percent of the
total value of the foreign-made
technology; and,
(d) In cases involving a complex
product made of a combination of U.S.origin goods (including software) and
technology falling within the definition
in § 560.205, the aggregate value of all
such U.S.-origin goods (including
software) and such technology
contained in the foreign-made product
must be less than 10 percent of the total
value of the foreign-made product.
Note 1 to § 560.420: Notwithstanding the
exceptions contained in § 560.205(b)(1) and
(b)(2) and this section, a reexportation to Iran
or the Government of Iran of U.S.-origin
items falling within the definition in
§ 560.205 is prohibited if those U.S.-origin
goods (including software) or that technology
have been substantially transformed or
incorporated into a foreign-made end product
which is destined to end uses or end users
prohibited under regulations administered by
other U.S. Government agencies. See, e.g., the
Export Administration Regulations (31 CFR
736.2(b)(5), 744.2, 744.3, 744.4, 744.7, and
744.10); International Traffic in Arms
Regulations (22 CFR 123.9).
Note 2 to § 560.420: A reexportation not
prohibited by § 560.205 may nevertheless
require authorization by the U.S. Department
of Commerce, the U.S. Department of State or
other agencies of the U.S. Government.
Note 3 to § 560.420: The provisions of
§ 560.205 and this section apply only to
persons other than United States persons.
§ 560.419 U.S. employment of persons
ordinarily resident in Iran.
§ 560.421
The prohibitions in § 560.201 make it
unlawful to hire an Iranian national
ordinarily resident in Iran to come to
the United States solely or for the
principal purpose of engaging in
A setoff against blocked property
(including a blocked account), whether
by a U.S. bank or other U.S. person, is
a prohibited transfer under § 560.211 if
effected after the effective date.
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Setoffs prohibited.
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§ 560.422 Termination and acquisition of
an interest in blocked property.
(a) Whenever a transaction licensed or
authorized by or pursuant to this part
results in the transfer of property
(including any property interest) away
from the Government of Iran, an Iranian
financial institution, or any other person
whose property and interests in
property are blocked pursuant to
§ 560.211, such property shall no longer
be deemed to be property blocked
pursuant to § 560.211, unless there
exists in the property another interest
that is blocked pursuant to § 560.211,
the transfer of which has not been
effected pursuant to license or other
authorization.
(b) Unless otherwise specifically
provided in a license or authorization
issued pursuant to this part, if property
(including any property interest) is
transferred or attempted to be
transferred to the Government of Iran,
an Iranian financial institution, or any
other person whose property and
interests in property are blocked
pursuant to § 560.211, such property
shall be deemed to be property in which
the Government of Iran, an Iranian
financial institution, or that person has
an interest and therefore blocked.
§ 560.423 Offshore transactions involving
blocked property.
The prohibitions in § 560.211 on
transactions or dealings involving
blocked property apply to transactions
by any U.S. person in a location outside
the United States with respect to
property held in the name of the
Government of Iran, an Iranian financial
institution, or any other person whose
property and interests in property are
blocked pursuant to § 560.211, or
property in which the Government of
Iran, an Iranian financial institution, or
any other person whose property and
interests in property are blocked
pursuant to § 560.211 has or has had an
interest since the effective date.
§ 560.424 Payments from blocked
accounts to satisfy obligations prohibited.
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Pursuant to § 560.211, no debits may
be made to a blocked account to pay
obligations to U.S. persons or other
persons, except as authorized by or
pursuant to this part.
Note to § 560.424: See also § 560.502(f),
which provides that no license or other
authorization contained in or issued
pursuant to this part authorizes transfers of
or payments from blocked property or debits
to blocked accounts unless the license or
other authorization explicitly authorizes the
transfer of or payment from blocked property
or the debit to a blocked account.
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§ 560.425 Entities owned by a person
whose property and interests in property
are blocked.
A person whose property and
interests in property are blocked
pursuant to § 560.211 has an interest in
all property and interests in property of
an entity in which it owns, directly or
indirectly, a 50 percent or greater
interest. The property and interests in
property of such an entity, therefore, are
blocked, and such an entity is a person
whose property and interests in
property are blocked pursuant to
§ 560.211, regardless of whether the
entity itself is designated pursuant to
§ 560.211.
Note to § 560.425: This section, which
deals with the consequences of ownership of
entities, in no way limits the definition of the
Government of Iran in § 560.304.
§ 560.426
Charitable contributions.
Unless specifically authorized by the
Office of Foreign Assets Control
pursuant to this part, no charitable
contribution of funds, goods, services,
or technology, including contributions
to relieve human suffering, such as food,
clothing or medicine, may be made by,
to, or for the benefit of, or received from,
the Government of Iran, an Iranian
financial institution, or any other person
whose property and interests in
property are blocked pursuant to
§ 560.211. For the purposes of this part,
a contribution is made by, to, or for the
benefit of, or received from, the
Government of Iran, an Iranian financial
institution, or any other person whose
property and interests in property are
blocked pursuant to § 560.211 if made
by, to, or in the name of, or received
from or in the name of, such a person;
if made by, to, or in the name of, or
received from or in the name of, an
entity or individual acting for or on
behalf of, or owned or controlled by,
such a person; or if made in an attempt
to violate, to evade, or to avoid the bar
on the provision of contributions by, to,
or for the benefit of such a person, or the
receipt of contributions from any such
person.
§ 560.427 Exportation, reexportation, sale
or supply of financial services to Iran or the
Government of Iran.
(a) The prohibition on the
exportation, reexportation, sale or
supply of financial services to Iran or
the Government of Iran contained in
§ 560.204 applies to:
(1) The transfer of funds, directly or
indirectly, from the United States or by
a U.S. person, wherever located, to Iran
or the Government of Iran; and
(2) The provision, directly or
indirectly, to Iran or the Government of
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Iran of insurance services, investment or
brokerage services (including but not
limited to brokering or trading services
regarding securities, debt, commodities,
options, or foreign exchange), banking
services, money remittance services;
loans, guarantees, letters of credit, or
other extensions of credit; or the service
of selling or redeeming traveler’s
checks, money orders, and prepaid
access products.
Note to paragraph (a) of § 560.427: See
§ 560.516 of this part, which authorizes only
United States depository institutions and
United States registered brokers or dealers in
securities to process certain transfers of funds
to or from Iran.
(b) Pursuant to the prohibition in
§ 560.204 on the exportation,
reexportation, sale or supply of financial
services to Iran or the Government of
Iran, United States depository
institutions and United States registered
brokers or dealers in securities are
prohibited from performing services
with respect to Iranian accounts, as
defined in § 560.320.
Note to paragraph (b) of § 560.427: See
§ 560.517 of this part for general licenses
authorizing United States depository
institutions and United States registered
brokers or dealers in securities to operate
Iranian accounts in certain limited
circumstances.
§ 560.428 Credit extended and cards
issued by U.S. financial institutions.
The prohibition in § 560.211 on
dealing in property subject to that
section prohibits U.S. financial
institutions from performing under any
existing credit agreements, including,
but not limited to, charge cards, debit
cards, or other credit facilities issued by
a U.S. financial institution to the
Government of Iran, an Iranian financial
institution, or any other person whose
property and interests in property are
blocked pursuant to § 560.211.
Subpart E—Licenses, Authorizations,
and Statements of Licensing Policy
§ 560.501 General and specific licensing
procedures.
For provisions relating to licensing
procedures, see part 501, subpart E of
this chapter. Licensing actions taken
pursuant to part 501 of this chapter with
respect to the prohibitions contained in
this part are considered actions taken
pursuant to this part. General licenses
and statements of licensing policy
relating to this part also may be
available through the Iran sanctions
page on the Office of Foreign Assets
Control’s Web site (www.treasury.gov/
ofac).
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§ 560.502 Effect of license or
authorization.
(a) No license or other authorization
contained in this part, or otherwise
issued by the Office of Foreign Assets
Control, authorizes or validates any
transaction effected prior to the issuance
of such license or other authorization,
unless specifically provided in such
license or authorization.
(b) No regulation, ruling, instruction,
or license authorizes any transaction
prohibited under this part unless the
regulation, ruling, instruction, or license
is issued by the Office of Foreign Assets
Control and specifically refers to this
part. No regulation, ruling, instruction,
or license referring to this part shall be
deemed to authorize any transaction
prohibited by any other part of this
chapter unless the regulation, ruling,
instruction, or license specifically refers
to such part.
(c) Any regulation, ruling, instruction,
or license authorizing any transaction
otherwise prohibited under this part has
the effect of removing a prohibition
contained in this part from the
transaction, but only to the extent
specifically stated by its terms. Unless
the regulation, ruling, instruction, or
license otherwise specifies, such an
authorization does not create any right,
duty, obligation, claim, or interest in, or
with respect to, any property which
would not otherwise exist under
ordinary principles of law.
(d) All transactions involving
property and interests in property of the
Government of Iran, an Iranian financial
institution, or any other person whose
property and interests in property are
blocked pursuant to § 560.211
authorized under specific licenses
issued pursuant to this part prior to
February 6, 2012, are authorized, and
such specific licenses shall remain in
effect according to their terms, provided
that such specific licenses have an
expiration date. If a specific license
issued pursuant to this part but not part
535 has no expiration date, then all
transactions involving property and
interests in property of the Government
of Iran, an Iranian financial institution,
or any other person whose property and
interests in property are blocked
pursuant to § 560.211 authorized under
such a specific license were authorized
until April 6, 2012, and such a specific
license shall otherwise expire in its
entirety on January 22, 2013. If a
specific license issued pursuant to this
part and part 535 has no expiration date,
then all transactions involving property
and interests in property of the
Government of Iran, an Iranian financial
institution, or any other person whose
property and interests in property are
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blocked pursuant to § 560.211
authorized under such a specific license
are authorized, and such a specific
license shall remain in effect according
to its terms. Nothing in this paragraph
authorizes payments from blocked
funds or debits to blocked accounts,
except for payments from funds or
debits to accounts blocked pursuant to
part 535 that are authorized by specific
licenses issued pursuant to this part and
part 535 of this chapter.
(e) Nothing contained in this part
shall be construed to supersede the
requirements established under any
other provision of law or to relieve a
person from any requirement to obtain
a license or other authorization from
another department or agency of the
U.S. Government in compliance with
applicable laws and regulations subject
to the jurisdiction of that department or
agency. For example, exports of goods,
services, or technical data which are not
prohibited by this part or which do not
require a license by the Office of Foreign
Assets Control, nevertheless may
require authorization by the U.S.
Department of Commerce, the U.S.
Department of State, or other agencies of
the U.S. Government. See also
§ 560.701(d).
(f) No license or other authorization
contained in or issued pursuant to this
part authorizes transfers of or payments
from blocked property or debits to
blocked accounts unless the license or
other authorization explicitly authorizes
the transfer of or payment from blocked
property or the debit to a blocked
account.
(g) Any payment relating to a
transaction authorized in or pursuant to
this part that is routed through the U.S.
financial system should reference the
relevant Office of Foreign Assets Control
general or specific license authorizing
the payment to avoid the blocking or
rejection of the transfer.
§ 560.503
Exclusion from licenses.
The Office of Foreign Assets Control
reserves the right to exclude any person,
property, transaction, or class thereof
from the operation of any license or
from the privileges conferred by any
license. The Office of Foreign Assets
Control also reserves the right to restrict
the applicability of any license to
particular persons, property,
transactions, or classes thereof. Such
actions are binding upon actual or
constructive notice of the exclusions or
restrictions.
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§ 560.504
64677
[Reserved]
§ 560.505 Activities and services related to
certain nonimmigrant and immigrant
categories authorized.
(a)(1) Persons otherwise eligible for
non-immigrant classification under
categories A–3 and G–5 (attendants,
servants and personal employees of
aliens in the United States on
diplomatic status), D (crewmen), F
(students), I (information media
representatives), J (exchange visitors), M
(non-academic students), O (aliens with
extraordinary ability), P (athletics,
artists and entertainers), Q
(international cultural exchange
visitors), R (religious workers), or S
(witnesses) are authorized to carry out
in the United States those activities for
which such a visa has been granted by
the U.S. State Department or such
nonimmigrant status or related benefit
has been granted by the U.S.
Department of Homeland Security.
(2) U.S. persons are authorized to
export services to Iran in connection
with the filing of an individual’s
application for the non-immigrant visa
categories listed in paragraph (b)(1) of
this section.
(b)(1) Persons otherwise eligible for
nonimmigrant classification under
categories E–2 (treaty investor), H
(temporary worker), or L (intra-company
transferee) and all immigrant
classifications are authorized to carry
out in the United States those activities
for which such a visa has been granted
by the U.S. State Department or such
nonimmigrant or immigrant status, or
related benefit, has been granted by the
U.S. Department of Homeland Security,
provided that the persons are not
coming to the United States to work as
an agent, employee, or contractor of the
Government of Iran or a business entity
or other organization in Iran.
(2) U.S. persons are authorized to
export services to Iran in connection
with the filing of an individual’s
application for the visa categories listed
in paragraph (b)(1) of this section.
(c)(1) U.S. persons are authorized to
engage in all transactions necessary to
export financial services to Iran in
connection with an individual’s
application for a non-immigrant visa
under category E–2 (treaty investor) or
an immigrant visa under category EB–5
(immigrant investor), provided that any
transfer of funds pursuant to the
authorization set forth in this paragraph
is effected in accordance with § 560.516.
(2) In the event services are exported
under paragraph (c)(1) of this section in
connection with an application for an
E–2 or EB–5 visa that is denied,
withdrawn, or otherwise does not result
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in the issuance of such visa, U.S.
persons are authorized to transfer, in a
lump sum back to Iran or to a third
country, any funds belonging to the
applicant that are held in an escrow
account during the pendency of, and in
connection with, such visa application,
provided that any transfer of funds
pursuant to the authorization set forth
in this paragraph is effected in
accordance with § 560.516.
(3) Paragraph (c)(1) of this section
does not authorize:
(i) The exportation of financial
services by U.S. persons other than in
connection with funds used in pursuit
of an E–2 or EB–5 visa;
(ii) Any investment in Iran by a U.S.
person;
(iii) The exportation or reexportation
to Iran of any goods (including software)
or technology; or
(iv) The provision of services to any
persons coming to the United States to
work as an agent, employee, or
contractor of the Government of Iran or
a business entity or other organization
in Iran.
(d) Paragraph (a)(1) of this section
authorizes the release of technology or
software to students ordinarily resident
in Iran who are attending school in the
United States as authorized by that
paragraph, provided that all of the
following requirements are met:
(1) Such release is ordinarily incident
and necessary to the educational
program in which the student is
enrolled;
(2) The technology or software being
released is designated as EAR99 under
the Export Administration Regulations,
15 CFR parts 730 through 774 (the
‘‘EAR’’), or constitutes Educational
Information not subject to the EAR, as
set forth in 15 CFR 734.9;
(3) The release does not otherwise
require a license from the Department of
Commerce; and
(4) The student to whom the release
is made is not enrolled in school or
participating in the educational program
as an agent, employee, or contractor of
the Government of Iran or a business
entity or other organization in Iran.
Note to § 560.505: See § 560.555 of this part
for general licenses authorizing the
importation and exportation of services
related to conferences in the United States or
third countries.
srobinson on DSK4SPTVN1PROD with
§ 560.506 Importation and exportation of
certain gifts authorized.
The importation into the United
States of Iranian-origin goods from Iran
or a third country, and the exportation
from the United States to Iran of goods,
are authorized for goods sent as gifts to
persons provided that the value of each
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gift is not more than $100; the goods are
of a type and in quantities normally
given as gifts between individuals; and
the goods are not controlled for
chemical and biological weapons (CB),
missile technology (MT), national
security (NS), or nuclear proliferation
(NP). See Commerce Control List,
Export Administration Regulations (15
CFR part 774).
§ 560.507
[Reserved]
§ 560.508 Telecommunications and mail
transactions authorized.
(a) All transactions with respect to the
receipt and transmission of
telecommunications involving Iran are
authorized. This section does not
authorize the provision, sale, or lease to
Iran, the Government of Iran, an Iranian
financial institution, or any other person
whose property and interests in
property are blocked pursuant to
§ 560.211 of telecommunications
equipment or technology; nor does it
authorize the provision, sale, or leasing
of capacity on telecommunications
transmission facilities (such as satellite
or terrestrial network connectivity).
(b) All transactions by U.S. persons,
including payment and transfers to
common carriers, incident to the receipt
or transmission of mail between the
United States and Iran are authorized,
provided that mail is limited to personal
communications not involving a transfer
of anything of value. For purposes of
this section, the term mail includes
parcels only to the extent the parcels
contain goods exempted from the
prohibitions contained in this part or
otherwise eligible for importation from
or exportation to Iran under a general or
specific license.
§ 560.509 Certain transactions related to
patents, trademarks, and copyrights
authorized.
(a) All of the following transactions in
connection with patent, trademark,
copyright or other intellectual property
protection in the United States or Iran
are authorized, including importation of
or dealing in Iranian-origin services,
payment for such services, and payment
to persons in Iran directly connected to
such intellectual property protection:
(1) The filing and prosecution of any
application to obtain a patent,
trademark, copyright or other form of
intellectual property protection;
(2) The receipt of a patent, trademark,
copyright or other form of intellectual
property protection;
(3) The renewal or maintenance of a
patent, trademark, copyright or other
form of intellectual property protection;
and
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(4) The filing and prosecution of
opposition or infringement proceedings
with respect to a patent, trademark,
copyright or other form of intellectual
property protection, or the entrance of a
defense to any such proceedings.
(b) This section authorizes the
payment of fees currently due to the
United States Government or the
Government of Iran, or of the reasonable
and customary fees and charges
currently due to attorneys or
representatives within the United States
or Iran, in connection with the
transactions authorized in paragraph (a)
of this section, except that payment
effected pursuant to the terms of this
paragraph may not be made from a
blocked account.
§ 560.510 Transactions related to the
resolution of disputes between the United
States or United States nationals and the
Government of Iran.
(a) Except as otherwise authorized,
specific licenses may be issued on a
case-by-case basis to authorize
transactions in connection with awards,
decisions or orders of the Iran-United
States Claims Tribunal in The Hague,
the International Court of Justice, or
other international tribunals
(collectively, ‘‘tribunals’’); agreements
settling claims brought before tribunals;
and awards, orders, or decisions of an
administrative, judicial, or arbitral
proceeding in the United States or
abroad, where the proceeding involves
the enforcement of awards, decisions, or
orders of tribunals, or is contemplated
under an international agreement, or
involves claims arising before 12:01 a.m.
Eastern Daylight Time, May 7, 1995,
that resolve disputes between the
Government of Iran and the United
States or United States nationals,
including the following transactions:
(1) Importation into the United States
of, or any transaction related to, goods
and services of Iranian origin or owned
or controlled by the Government of Iran;
(2) Exportation or reexportation to
Iran or the Government of Iran of any
goods, technology, or services, except to
the extent that such exportation or
reexportation is also subject to export
licensing application requirements of
another agency of the United States
Government and the granting of such a
license by that agency would be
prohibited by law;
(3) Financial transactions related to
the resolution of disputes at tribunals,
including transactions related to the
funding of proceedings or of accounts
related to proceedings or to a tribunal;
participation, representation, or
testimony before a tribunal; and the
payment of awards of a tribunal; and
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(4) Other transactions otherwise
prohibited by this part which are
necessary to permit implementation of
the foregoing awards, decisions, orders,
or agreements.
(b) Specific licenses may be issued on
a case-by-case basis to authorize
payment of costs related to the storage
or maintenance of goods in which the
Government of Iran has title, and to
authorize the transfer of title to such
goods, provided that such goods are in
the United States and that such goods
are the subject of a proceeding pending
before a tribunal.
(c)(1) All transactions are authorized
with respect to the importation of
Iranian-origin goods and services
necessary to the initiation and conduct
of legal proceedings, in the United
States or abroad, including
administrative, judicial, and arbitral
proceedings and proceedings before
tribunals.
(2) Specific licenses may be issued on
a case-by-case basis to authorize the
exportation to Iran or the Government of
Iran of goods, and of services not
otherwise authorized by § 560.525,
necessary to the initiation and conduct
of legal proceedings, in the United
States or abroad, including
administrative, judicial, and arbitral
proceedings and proceedings before
tribunals, except to the extent that the
exportation is also subject to export
licensing application requirements of
another agency of the United States
Government and the granting of such a
license by that agency would be
prohibited by law.
(3) Representation of United States
persons or of third country persons in
legal proceedings, in the United States
or abroad, including administrative,
judicial, and arbitral proceedings and
proceedings before tribunals, against
Iran or the Government of Iran is not
prohibited by this part. The exportation
of certain legal services to a person in
Iran or the Government of Iran is
authorized in § 560.525.
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Note to paragraph (c)(3) of § 560.510: The
entry of any judgment or order, or entry into
a settlement agreement, that effects a transfer
of blocked property or interests in property,
or the execution of any judgment against
property or interests in property blocked
pursuant to § 560.211 is prohibited, unless
specifically licensed in accordance with
§ 560.212(e). See § 560.525(c).
(d) The following are authorized:
(1) All transactions related to payment
of awards of the Iran-United States
Claims Tribunal in The Hague against
Iran.
(2) All transactions necessary to the
payment and implementation of awards
(other than exports or reexports subject
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Jkt 229001
to export license application
requirements of other agencies of the
United States Government) in a legal
proceeding to which the United States
Government is a party, or to payments
pursuant to settlement agreements
entered into by the United States
Government in such a legal proceeding.
§ 560.511
[Reserved]
§ 560.512 Iranian Government missions in
the United States.
(a) The importation of goods or
services into the United States by, and
the provision of goods or services in the
United States to, the diplomatic
missions of the Government of Iran to
international organizations in the
United States, and the Iranian Interests
Section of the Embassy of Pakistan (or
any successor protecting power) in the
United States are authorized, provided
that:
(1) The goods or services are for the
conduct of the official business of the
missions or the Iranian Interests
Section, or for personal use of the
employees of the missions or the Iranian
Interests Section, and are not for resale;
(2) The transaction does not involve
the purchase, sale, financing, or
refinancing of real property;
(3) The transaction is not otherwise
prohibited by law; and
(4) The transaction is conducted
through an account at a U.S. financial
institution specifically licensed by the
Office of Foreign Assets Control.
Note to paragraph (a)(4) of § 560.512: U.S.
financial institutions are required to obtain
specific licenses to operate accounts for, or
extend credit to, the diplomatic missions of
the Government of Iran to international
organizations in the United States, or the
Iranian Interests Section of the Embassy of
Pakistan (or any successor protecting power)
in the United States.
(b) The importation of goods or
services into the United States by, and
the provision of goods or services in the
United States to, the employees of the
diplomatic missions of the Government
of Iran to international organizations in
the United States, and the employees of
the Iranian Interests Section of the
Embassy of Pakistan (or any successor
protecting power) in the United States,
are authorized, provided that:
(1) The goods or services are for
personal use of the employees of the
missions or the Iranian Interests
Section, and are not for resale; and
(2) The transaction is not otherwise
prohibited by law.
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§ 560.513–560.515
§ 560.516
Iran.
64679
[Reserved]
Transfers of funds involving
(a) United States depository
institutions are authorized to process
transfers of funds to or from Iran, or for
the direct or indirect benefit of persons
in Iran or the Government of Iran, if the
transfer arises from, and is ordinarily
incident and necessary to give effect to,
an underlying transaction that has been
authorized by a specific or general
license issued pursuant to, or set forth
in, this part and does not involve
debiting or crediting an Iranian account.
(b) United States registered brokers or
dealers in securities are authorized to
process transfers of funds to or from
Iran, or for the direct or indirect benefit
of persons in Iran or the Government of
Iran, if the transfer arises from, and is
ordinarily incident and necessary to
give effect to, an underlying transaction
that has been authorized by a specific or
general license issued pursuant to, or set
forth in, this part and does not involve
debiting or crediting an Iranian account.
§ 560.517 Exportation of services: Iranian
accounts at United States depository
institutions or United States registered
brokers or dealers in securities.
(a) United States depository
institutions are authorized to provide
and be compensated for the following
services and incidental transactions
with respect to Iranian accounts other
than blocked accounts, as defined in
§ 560.322:
(1) The maintenance of Iranian
accounts other than blocked accounts,
including the payment of interest and
the debiting of service charges; and
(2) At the request of the account party,
who may not be the Government of Iran,
an Iranian financial institution, or any
other person whose property and
interests in property are blocked
pursuant to § 560.211, the closing of
Iranian accounts other than blocked
accounts and the lump sum transfer
only to the account party of all
remaining funds and other assets in the
account.
(b) United States registered brokers or
dealers in securities are authorized to
provide and be compensated for the
following services and incidental
transactions with respect to Iranian
accounts other than blocked accounts,
as defined in § 560.322:
(1) The limited maintenance of an
Iranian account other than a blocked
account, including only the payment
into such account of interest, cash
dividends, and stock dividends; the
debiting of service charges; and the
execution of stock splits and dividend
reinvestment plans; and
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(2) At the request of the account party,
who may not be the Government of Iran,
an Iranian financial institution, or any
other person whose property and
interests in property are blocked
pursuant to § 560.211, the closing of
Iranian accounts other than blocked
accounts through the one-time
liquidation of all assets in the account
at fair market value and the lump sum
transfer only to the account party of all
proceeds derived therefrom and all
remaining funds in the account.
Note to paragraphs (a) and (b) of
§ 560.517: See § 560.547, which authorizes
U.S. financial institutions to debit blocked
accounts for normal service charges, and
§ 560.213, concerning the obligation to hold
blocked funds in interest-bearing accounts.
(c) Specific licenses may be issued
with respect to the operation of Iranian
accounts that constitute accounts of:
(1) Foreign government missions and
their personnel in Iran; or
(2) Diplomatic missions of the
Government of Iran to international
organizations in the United States or the
Iranian Interests Section of the Embassy
of Pakistan in the United States.
srobinson on DSK4SPTVN1PROD with
§ 560.518 Transactions in Iranian-origin
and Iranian government property.
Except for transactions involving the
Government of Iran, an Iranian financial
institution, or any other person whose
property and interests in property are
blocked pursuant to § 560.211, and
provided that paragraph (a) of this
section does not affect the status of
property blocked pursuant to part 535 or
this part or detained or seized, or
subject to detention or seizure, pursuant
to this part, the following transactions
are authorized:
(a) All domestic transactions with
respect to Iranian-origin goods located
in the United States other than goods
blocked pursuant to § 560.211.
(b) Transactions by a United States
person with third-country nationals
incidental to the storage and
maintenance in third countries of
Iranian-origin goods owned prior to May
7, 1995, by that United States person or
acquired thereafter by that United States
person consistent with the provisions of
this part;
(c) Exportation of Iranian-origin
household and personal effects from the
United States incident to the relocation
of United States persons outside the
United States; and
(d) The use or disposition by a United
States person of Iranian-origin
household and personal effects that are
located outside the United States and
that have been acquired by the United
States person in transactions not
prohibited by part 535 or this part.
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§ 560.519 Journalistic activities and
establishment of news bureaus in Iran.
(a) Subject to the limitations and
conditions set forth in paragraph (c) of
this section, news reporting
organizations that are United States
persons, and individuals who are
United States persons regularly
employed by a news reporting
organization either as journalists
(including photojournalists) or as
supporting broadcast or technical
personnel, are authorized to engage in
the following transactions in Iran to the
extent such transactions are ordinarily
incident to their journalistic activities in
Iran:
(1) Hiring and compensating support
staff in Iran (e.g., stringers, translators,
interpreters, camera operators, technical
experts, freelance producers, or drivers),
or persons to handle logistics, or other
office personnel as needed;
(2) Leasing or renting office space;
(3) Purchasing, leasing, or renting
Iranian-origin goods and services (e.g.,
mobile phones and related air time),
selling such goods when no longer
needed to persons other than the
Government of Iran, or importing them
into the United States;
(4) Renting and using
telecommunications facilities in Iran
and paying fees related to the
dissemination of information and
transmission of news feeds (e.g., fees for
satellite uplink facilities, live news
feeds, taxes);
(5) Exporting and reexporting to Iran,
and subsequently reexporting from Iran,
equipment necessary for and ordinarily
incident to journalistic activities,
provided such equipment is designated
as EAR99 under the Export
Administration Regulations, 15 CFR
parts 730 through 774 (the ‘‘EAR’’), and
further provided that such equipment is
reexported from Iran to the United
States or a third country when no longer
needed for journalistic activities in Iran;
and
(6) Paying for all expenses ordinarily
incident to journalistic activities,
including sales or employment taxes to
the Government of Iran.
(b) Subject to the limitations and
conditions set forth in paragraph (c) of
this section, news reporting
organizations that are United States
persons are authorized to establish and
operate news bureaus in Iran and to
engage in the transactions set forth in
paragraph (a) of this section to the
extent such transactions are ordinarily
incident to the establishment and
operation of a news bureau in Iran.
(c) The authorizations set forth in
paragraphs (a) and (b) of this section are
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subject to the following limitations and
conditions:
(1) No goods, technology, or software
listed on the Commerce Control List in
the EAR, 15 CFR part 774, supplement
No. 1 (CCL), or that requires a license
under part 744 of the EAR, or controlled
by the United States Department of State
under the International Traffic in Arms
Regulations, 22 CFR parts 120 through
130, may be exported or reexported to
Iran without separate authorization from
the Office of Foreign Assets Control.
Note to paragraph (c)(1) of § 560.519: The
Commerce Control List in the EAR, 15 CFR
part 774, supplement No. 1, includes items
such as many laptop computers, personal
computers, cell phones, personal digital
assistants and other wireless handheld
devices/blackberries, and other similar items.
The exportation or reexportation of these
items to Iran, even on a temporary basis, is
prohibited, unless specifically authorized in
a license issued pursuant to this part in a
manner consistent with the Iran-Iraq Arms
Nonproliferation Act of 1992 and other
relevant law.
(2) Any United States person
exporting or reexporting to Iran EAR99
equipment pursuant to paragraphs (a) or
(b) of this section:
(i) Must maintain ownership and
control of such equipment at all times
while it is in Iran; and
(ii) Must submit a report to the
Licensing Division, Office of Foreign
Assets Control, U.S. Department of the
Treasury, 1500 Pennsylvania Avenue
NW., Annex, Washington, DC 20220
within 10 business days of the export or
reexport specifying the items exported
or reexported and confirming that they
are EAR99, and another report
confirming that such items have been
reexported from Iran to the United
States or a third country within 10
business days of the date of
reexportation from Iran.
(3) This section does not authorize the
exportation or reexportation to Iran of
any goods, technology, or services that
are not necessary and ordinarily
incident to journalistic activities in Iran
or to the establishment and operation of
a news bureau in Iran.
(d) For the purposes of this section,
the term news reporting organization
means an entity whose primary purpose
is the gathering and dissemination of
news to the general public.
Note to § 560.519: For a specific licensing
policy governing the establishment and
operation of news bureaus in the United
States by Iranian news organizations, see
§ 560.549.
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§ 560.520
[Reserved]
§ 560.521
Diplomatic pouches.
The following transactions are
authorized:
(a) The importation into the United
States from Iran, or the exportation from
the United States to Iran, of diplomatic
pouches and their contents; and
(b) The exportation, reexportation,
sale, or supply, directly or indirectly,
from the United States or by a U.S.
person, wherever located, of any goods
or technology to a third-country
government, or to its contractors or
agents, for shipment to Iran via a
diplomatic pouch. To the extent
necessary, this section also authorizes
the shipment of such goods or
technology by the third-country
government to Iran via a diplomatic
pouch.
Note to paragraph (b) of § 560.521: The
exportation or reexportation of certain U.S.origin goods or technology to a third-country
government, or to its contractors or agents,
may require authorization by the U.S.
Department of Commerce under the Export
Administration Regulations (15 CFR parts
730 through 774).
§ 560.522 Allowable payments for
overflights of Iranian airspace.
Payments to Iran of charges for
services rendered by the Government of
Iran in connection with the overflight of
Iran or emergency landing in Iran of
aircraft owned by a United States person
or registered in the United States are
authorized.
§ 560.523 Exportation of equipment and
services relating to information and
informational materials.
Specific licenses may be issued on a
case-by-case basis for the exportation of
equipment and services necessary for
the establishment of news wire feeds or
other transmissions of information and
informational materials.
srobinson on DSK4SPTVN1PROD with
§ 560.524
effects.
Household goods and personal
(a) The exportation from the United
States to Iran of household and personal
effects, including baggage and articles
for family use, of persons departing the
United States to relocate in Iran is
authorized provided the articles
included in such effects have been
actually used by such persons or by
family members accompanying them,
are not intended for any other person or
for sale, and are not otherwise
prohibited from exportation. See also
§ 560.518(c).
(b) The importation of Iranian-origin
household and personal effects,
including baggage and articles for family
use, of persons arriving in the United
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States is authorized; to qualify, articles
included in such effects must have been
actually used abroad by such persons or
by other family members from the same
foreign household, must not be intended
for any other person or for sale, and
must not be otherwise prohibited from
importation. For purposes of this
paragraph, household and personal
effects include all articles meeting the
criteria stated in this paragraph
regardless of the time elapsed since the
importer’s arrival in the United States
from Iran.
§ 560.525
services.
Provision of certain legal
(a) The provision of the following
legal services to or on behalf of the
Government of Iran, an Iranian financial
institution, or any other person whose
property and interests in property are
blocked pursuant to § 560.211, or to or
on behalf of a person in Iran, or in
circumstances in which the benefit is
otherwise received in Iran is authorized,
provided that receipt of payment of
professional fees and reimbursement of
incurred expenses are authorized by or
pursuant to paragraph (d) of this section
or otherwise authorized pursuant to this
part:
(1) Provision of legal advice and
counseling on the requirements of and
compliance with the laws of the United
States or any jurisdiction within the
United States, provided that such advice
and counseling is not provided to
facilitate transactions in violation of this
part;
(2) Representation of persons named
as defendants in or otherwise made a
party to domestic United States legal,
arbitration, or administrative
proceedings;
(3) Initiation and conduct of domestic
United States legal, arbitration, or
administrative proceedings;
(4) Representation of persons before
any federal or state agency with respect
to the imposition, administration, or
enforcement of United States sanctions
against Iran;
(5) Initiation and conduct of legal
proceedings, in the United States or
abroad, including administrative,
judicial, and arbitral proceedings and
proceedings before international
tribunals (including the Iran-United
States Claims Tribunal in The Hague
and the International Court of Justice):
(i) To resolve disputes between the
Government of Iran or an Iranian
national and the United States or a
United States national;
(ii) Where the proceeding is
contemplated under an international
agreement; or
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64681
(iii) Where the proceeding involves
the enforcement of awards, decisions, or
orders resulting from legal proceedings
within the scope of paragraph (a)(5)(i) or
(a)(5)(ii) of this section, provided that
any transaction, unrelated to the
provision of legal services or the
payment therefor, that is necessary or
related to the execution of an award,
decision, or order resulting from such
legal proceeding, or otherwise necessary
for the conduct of such proceeding, and
which would otherwise be prohibited
by this part requires a specific license in
accordance with §§ 560.510 and
560.801;
(6) Provision of legal advice and
counseling in connection with
settlement or other resolution of matters
described in paragraph (a)(5) of this
section; and
(7) Provision of legal services in any
other context in which prevailing
United States law requires access to
legal counsel at public expense.
(b) The provision of any other legal
services to the Government of Iran, an
Iranian financial institution, or any
other person whose property and
interests in property are blocked
pursuant to § 560.211, or to or on behalf
of a person in Iran, or in circumstances
in which the benefit is otherwise
received in Iran, not otherwise
authorized in this part, requires the
issuance of a specific license.
(c) Entry into a settlement agreement
or the enforcement of any lien,
judgment, arbitral award, decree, or
other order through execution,
garnishment, or other judicial process
purporting to transfer or otherwise alter
or affect property or interests in
property blocked pursuant to § 560.211
is prohibited unless specifically
licensed in accordance with
§ 560.212(e).
(d)(1) All receipts of payment of
professional fees and reimbursement of
incurred expenses for the provision of
legal services authorized pursuant to
paragraph (a) of this section to or on
behalf of the Government of Iran, an
Iranian financial institution, or any
other person whose property and
interests in property are blocked
pursuant to § 560.211 must be
specifically licensed or otherwise
authorized pursuant to § 560.553 of this
part.
(2) All receipts of payment of
professional fees and reimbursement of
incurred expenses for the provision of
legal services authorized pursuant to
paragraph (a) of this section to or on
behalf of a person in Iran, or in
circumstances in which the benefit is
otherwise received in Iran, other than
those described in paragraph (d)(1) of
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this section, are authorized, except that
nothing in this section authorizes the
debiting of any blocked account or the
transfer of any blocked property.
§ 560.526
[Reserved]
§ 560.527
Rescheduling existing loans.
Specific licenses may be issued on a
case-by-case basis for rescheduling
loans or otherwise extending the
maturities of existing loans, and for
charging fees or interest at commercially
reasonable rates, in connection
therewith, provided that no new funds
or credits are thereby transferred or
extended to Iran or the Government of
Iran, an Iranian financial institution, or
any other person whose property and
interests in property are blocked
pursuant to § 560.211.
§ 560.528
Aircraft safety.
Specific licenses may be issued on a
case-by-case basis for the exportation or
reexportation of goods, services, and
technology to insure the safety of civil
aviation and safe operation of U.S.origin commercial passenger aircraft.
§ 560.529
repairs.
Bunkering and emergency
(a) Except as provided in paragraph
(b) of this section, goods or services
provided in the United States to a nonIranian carrier transporting passengers
or goods to or from Iran are permissible
if they are:
(1) Bunkers or bunkering services;
(2) Supplied or performed in the
course of emergency repairs; or
(3) Supplied or performed under
circumstances which could not be
anticipated prior to the carrier’s
departure for the United States.
(b) This section does not authorize the
provision of goods or services in
connection with the transport of any
goods to or from the Government of
Iran, an Iranian financial institution, or
any other person whose property and
interests in property are blocked
pursuant to § 560.211.
srobinson on DSK4SPTVN1PROD with
§ 560.530 Commercial sales, exportation,
and reexportation of agricultural
commodities, medicine, and medical
devices.
(a)(1) One-year license requirement.
The exportation or reexportation of the
excluded food items specified in
paragraph (a)(2)(iii) of this section,
agricultural commodities that do not fall
within the definition of food set forth in
paragraph (a)(2)(ii) of this section, food
(as defined in paragraph (a)(2)(ii) of this
section) intended for military or law
enforcement purchasers or importers,
the excluded medicines specified in
paragraph (a)(3)(iii) of this section,
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medicine (as defined in paragraph (e)(2)
of this section) intended for military or
law enforcement purchasers or
importers, medical devices (as defined
in paragraph (e)(3) of this section) other
than basic medical supplies (as defined
in paragraph (a)(3)(ii) of this section), or
basic medical supplies (as defined in
paragraph (a)(3)(ii) of this section)
intended for military or law
enforcement purchasers or importers
(together, ‘‘agricultural commodities,
medicine and medical devices that are
not covered by the general licenses in
paragraphs (a)(2) and (a)(3) of this
section’’) to the Government of Iran, to
any individual or entity in Iran, or to
persons in third countries purchasing
specifically for resale to any of the
foregoing, shall only be made pursuant
to a one-year specific license issued by
the Office of Foreign Assets Control for
contracts entered into during the one
year period of the license and shipped
within the 12-month period beginning
on the date of the signing of the
contract. No specific license will be
granted for the exportation or
reexportation of the items set forth
above to any entity or individual in Iran
promoting international terrorism, to
any narcotics trafficking entity
designated pursuant to Executive Order
12978 of October 21, 1995 (60 FR 54579,
October 24, 1995) or the Foreign
Narcotics Kingpin Designation Act (21
U.S.C. 1901–1908), or to any foreign
organization, group, or persons subject
to any restriction for its or their
involvement in weapons of mass
destruction or missile proliferation.
Executory contracts entered into
pursuant to paragraph (b)(2) of this
section prior to the issuance of the oneyear license described in this paragraph
shall be deemed to have been signed on
the date of issuance of that one-year
license (and, therefore, the exporter is
authorized to make shipments under
that contract within the 12-month
period beginning on the date of issuance
of the one-year license).
(2)(i) General license for the
exportation or reexportation of food.
Except as provided in paragraphs
(a)(2)(iii) and (a)(2)(iv) of this section,
the exportation or reexportation of food
(including bulk agricultural
commodities listed in appendix B to
this part) to the Government of Iran, to
any individual or entity in Iran, or to
persons in third countries purchasing
specifically for resale to any of the
foregoing, and the conduct of related
transactions, including, but not limited
to, the making of shipping and cargo
inspection arrangements, the obtaining
of insurance, the arrangement of
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financing and payment, shipping of the
goods, receipt of payment, and the entry
into contracts (including executory
contracts), are hereby authorized,
provided that, unless otherwise
authorized by specific license, payment
terms and financing for sales pursuant
to this general license are limited to,
and consistent with, those authorized by
§ 560.532 of this part; and further
provided that all such exports or
reexports are shipped within the 12month period beginning on the date of
the signing of the contract for export or
reexport.
(ii) Definition of Food. For purposes
of this general license, the term food
means items that are intended to be
consumed by and provide nutrition to
humans or animals in Iran, including
vitamins and minerals, food additives
and supplements, and bottled drinking
water, and seeds that germinate into
items that are intended to be consumed
by and provide nutrition to humans or
animals in Iran. For purposes of this
general license, the term food does not
include alcoholic beverages, cigarettes,
gum, or fertilizer.
(iii) Excluded food items. Paragraph
(a)(2)(i) of this section does not
authorize the exportation or
reexportation of the following food
items: castor beans, castor bean seeds,
certified pathogen-free eggs (unfertilized
or fertilized), dried egg albumin, live
animals, Rosary/Jequirity peas, nonfoodgrade gelatin powder, and peptones and
their derivatives.
(iv) Excluded persons. Paragraph
(a)(2)(i) of this section does not
authorize the exportation or
reexportation of food to military or law
enforcement purchasers or importers.
Note to paragraph (a)(2) of § 560.530:
Consistent with section 906(a)(1) of the Trade
Sanctions Reform and Export Enhancement
Act of 2000 (22 U.S.C. 7205), each year by
the anniversary of its effective date on
October 12, 2011, the Office of Foreign Assets
Control will determine whether to revoke
this general license. Unless revoked, the
general license will remain in effect.
(3)(i) General license for the
exportation or reexportation of
medicine and basic medical supplies.
Except as provided in paragraphs
(a)(3)(iii) and (a)(3)(iv) of this section,
the exportation or reexportation of
medicine (as defined in paragraph (e)(2)
of this section) and basic medical
supplies (as defined in paragraph
(a)(3)(ii) of this section) to the
Government of Iran, to any individual or
entity in Iran, or to persons in third
countries purchasing specifically for
resale to any of the foregoing, and the
conduct of related transactions,
including, but not limited to, the
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making of shipping and cargo
inspection arrangements, the obtaining
of insurance, the arrangement of
financing and payment, shipping of the
goods, receipt of payment, and the entry
into contracts (including executory
contracts), are hereby authorized,
provided that unless otherwise
authorized by specific license, payment
terms and financing for sales pursuant
to this general license are limited to,
and consistent with, those authorized by
§ 560.532 of this part; and further
provided that all such exports or
reexports are shipped within the 12month period beginning on the date of
the signing of the contract for export or
reexport.
(ii) Definition of basic medical
supplies. For purposes of this general
license, the term basic medical supplies
means those medical devices, as defined
in paragraph (e)(3) of this section, that
are included on the List of Basic
Medical Supplies on the Office of
Foreign Assets Control’s Web site
(www.treasury.gov/ofac) on the Iran
Sanctions page, but does not include
replacement parts.
Note to paragraph (a)(3)(ii) of § 560.530:
The List of Basic Medical Supplies is
maintained on the Office of Foreign Assets
Control’s Web site (www.treasury.gov/ofac)
on the Iran Sanctions page. The list also will
be published in the Federal Register, as will
any changes to the list. The List of Basic
Medical Supplies generally contains those
medical devices (excluding replacement
parts) for which OFAC previously did not
require an Official Commodity Classification
of EAR99 issued by the Department of
Commerce, Bureau of Industry and Security,
to be submitted with a specific license
application and which are now generally
licensed.
srobinson on DSK4SPTVN1PROD with
(iii) Excluded medicines. Paragraph
(a)(3)(i) of this section does not
authorize the exportation or
reexportation of the following
medicines: non-NSAID analgesics,
cholinergics, anticholinergics, opioids,
narcotics, benzodiazapenes, and
bioactive peptides.
(iv) Excluded persons. Paragraph
(a)(3)(i) of this section does not
authorize the exportation or
reexportation of medicine or basic
medical supplies to military or law
enforcement purchasers or importers.
Note to paragraph (a)(3) of § 560.530:
Consistent with section 906(a)(1) of the Trade
Sanctions Reform and Export Enhancement
Act of 2000 (22 U.S.C. 7205), each year by
the anniversary of its effective date on
October 22, 2012, the Office of Foreign Assets
Control will determine whether to revoke
this general license. Unless revoked, the
general license will remain in effect.
(b) General license for arrangement of
exportation and reexportation of
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covered products that require a specific
license. (1) With respect to sales
pursuant to paragraph (a)(1) of this
section, the making of shipping
arrangements, cargo inspections,
obtaining of insurance, and arrangement
of financing (consistent with § 560.532)
for the exportation or reexportation of
agricultural commodities, medicine and
medical devices not covered by the
general licenses in paragraphs (a)(2) and
(a)(3) of this section to the Government
of Iran, to any individual or entity in
Iran, or to persons in third countries
purchasing specifically for resale to any
of the foregoing, are authorized.
(2) Entry into executory contracts
(including executory pro forma
invoices, agreements in principle, or
executory offers capable of acceptance
such as bids in response to public
tenders) for the exportation or
reexportation of agricultural
commodities, medicine and medical
devices not covered by the general
licenses in paragraphs (a)(2) and (a)(3)
of this section to the Government of
Iran, to any individual or entity in Iran,
or to persons in third countries
purchasing specifically for resale to any
of the foregoing, is authorized, provided
that the performance of an executory
contract is expressly made contingent
upon the prior issuance of the one-year
specific license described in paragraph
(a)(1) of this section.
(c) Instructions for obtaining one-year
licenses. In order to obtain the one-year
specific license described in paragraph
(a)(1) of this section, the exporter must
provide to the Office of Foreign Assets
Control:
(1) The applicant’s full legal name
(and, if the applicant is a business
entity, the state or jurisdiction of
incorporation and principal place of
business);
(2) The applicant’s mailing and street
address (and, so that OFAC may reach
a responsible point of contact, the
applicant should also include the name
of the individual(s) responsible for the
application and related commercial
transactions, along with their telephone
and fax numbers and, if available, email
addresses);
(3) The names, mailing addresses,
and, if available, fax and telephone
numbers and email addresses of all
parties with an interest in the
transaction. If the goods are being
exported or reexported to a purchasing
agent in Iran, the exporter must identify
the agent’s principals at the wholesale
level for whom the purchase is being
made. If the goods are being exported or
reexported to an individual, the
exporter must identify any organizations
or entities with which the individual is
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affiliated that have an interest in the
transaction;
(4) A description of all items to be
exported or reexported pursuant to the
requested one-year license, including a
statement that the item is designated as
EAR99 and, if necessary, documentation
sufficient to verify that the items to be
exported or reexported are designated as
EAR99 and do not fall within any of the
limitations contained in paragraph (d) of
this section; and
(5) An Official Commodity
Classification of EAR99 issued by the
Department of Commerce, Bureau of
Industry and Security (‘‘BIS’’), certifying
that the product is designated as EAR99,
is required to be submitted to OFAC
with the request for a license
authorizing the exportation or
reexportation of all fertilizers, live
horses, western red cedar, and medical
devices other than basic medical
supplies. See 15 CFR 745.3 for
instructions for obtaining an Official
Commodity Classification of EAR99
from BIS.
(d) Limitations. (1) Nothing in this
section or in any general or specific
license set forth in or issued pursuant to
paragraph (a) of this section relieves the
exporter from compliance with the
export license application requirements
of another Federal agency.
(2) Nothing in this section or in any
general or specific license set forth in or
issued pursuant to paragraph (a) of this
section authorizes the exportation or
reexportation of any agricultural
commodity, medicine, or medical
device controlled on the United States
Munitions List established under
section 38 of the Arms Export Control
Act (22 U.S.C. 2778); controlled on any
control list established under the Export
Administration Act of 1979 or any
successor statute (50 U.S.C. App. 2401
et seq.); or used to facilitate the
development or production of a
chemical or biological weapon or
weapon of mass destruction.
(3) Nothing in this section or in any
general or specific license set forth in or
issued pursuant to paragraph (a) of this
section affects prohibitions on the sale
or supply of U.S. technology or software
used to manufacture agricultural
commodities, medicine, or medical
devices, such as technology to design or
produce biotechnological items or
medical devices.
(4) Nothing in this section or in any
general or specific license set forth in or
issued pursuant to paragraph (a) of this
section affects U.S. nonproliferation
export controls, including the end-user
and end-use controls maintained under
Part 744 of the Export Administration
Regulations, 15 CFR part 744.
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(5) Nothing in this section authorizes
any transaction or dealing with a person
whose property and interests in
property are blocked under, or who is
designated or otherwise subject to any
sanctions under, the terrorism,
proliferation of weapons of mass
destruction, or narcotics trafficking
programs administered by OFAC, 31
CFR parts 536, 544, 594, 595, 597, and
598, or with any foreign organization,
group, or person subject to any
restriction for its involvement in
weapons of mass destruction or missile
proliferation, or involving property
blocked pursuant to this chapter or any
other activity prohibited by this chapter
not otherwise authorized in or pursuant
to this part.
(e) Covered items. For the purposes of
this part, agricultural commodities,
medicine, and medical devices are
defined below.
(1) Agricultural commodities. For the
purposes of this part, agricultural
commodities are:
(i) Products not listed on the
Commerce Control List in the Export
Administration Regulations, 15 CFR
part 774, supplement no. 1, that fall
within the term ‘‘agricultural
commodity’’ as defined in section 102 of
the Agricultural Trade Act of 1978 (7
U.S.C. 5602); and
(ii) Products not listed on the
Commerce Control List in the Export
Administration Regulations, 15 CFR
part 774, supplement no. 1, that are
intended for ultimate use in Iran as:
(A) Food for humans (including raw,
processed, and packaged foods; live
animals; vitamins and minerals; food
additives or supplements; and bottled
drinking water) or animals (including
animal feeds);
(B) Seeds for food crops;
(C) Fertilizers or organic fertilizers; or
(D) Reproductive materials (such as
live animals, fertilized eggs, embryos,
and semen) for the production of food
animals.
(2) Medicine. For the purposes of this
part, the term medicine has the same
meaning given the term ‘‘drug’’ in
section 201 of the Federal Food, Drug,
and Cosmetic Act (21 U.S.C. 321) but
does not include any item listed on the
Commerce Control List in the Export
Administration Regulations, 15 CFR
part 774, supplement no. 1 (excluding
items classified as EAR99).
Note to § 560.530(e)(2): The Department of
Commerce’s Bureau of Industry and Security
provides a list on its Web site of medicines
that are not designated as EAR99 and
therefore not eligible for any general or
specific license under this section.
(3) Medical device. For the purposes
of this part, the term medical device has
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the meaning given the term ‘‘device’’ in
section 201 of the Federal Food, Drug,
and Cosmetic Act (21 U.S.C. 321) but
does not include any item listed on the
Commerce Control List in the Export
Administration Regulations, 15 CFR
part 774, supplement no. 1 (excluding
items designated as EAR99).
(f) Excluded items. (1) For the
purposes of this part, agricultural
commodities do not include furniture
made from wood; clothing
manufactured from plant or animal
materials; agricultural equipment
(whether hand tools or motorized
equipment); pesticides, insecticides, or
herbicides; or cosmetics (unless derived
entirely from plant materials).
(2) For the purposes of this part, the
term medicine does not include
cosmetics.
§ 560.531
[Reserved]
§ 560.532 Payment for and financing of
exports and reexports of agricultural
commodities, medicine, and medical
devices.
(a) General license for payment terms.
The following payment terms are
authorized for sales pursuant to
§ 560.530(a):
(1) Payment of cash in advance;
(2) Sales on open account, provided
that the account receivable may not be
transferred by the person extending the
credit;
(3) Financing by third-country
financial institutions that are not United
States persons, Iranian financial
institutions, or the Government of Iran.
Such financing may be confirmed or
advised by U.S. financial institutions; or
(4) Letter of credit issued by an
Iranian financial institution whose
property and interests in property are
blocked solely pursuant to this part.
Such letter of credit must be initially
advised, confirmed or otherwise dealt in
by a third-country financial institution
that is not a United States person, an
Iranian financial institution, or the
Government of Iran before it is advised,
confirmed or dealt in by a U.S. financial
institution.
(b) Specific licenses for alternate
payment terms. Specific licenses may be
issued on a case-by-case basis for
payment terms and trade financing not
authorized by the general license in
paragraph (a) of this section for sales
pursuant to § 560.530(a).
(c)(1) No debits to blocked accounts.
Nothing in this section authorizes
payment terms or trade financing
involving a debit to an account blocked
pursuant to this part.
(2) No debits or credits to Iranian
accounts on the books of U.S.
depository institutions. Nothing in this
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section authorizes payment terms or
trade financing involving debits or
credits to Iranian accounts, as defined in
§ 560.320.
(d) Notwithstanding any other
provision of this part, no commercial
exportation to Iran may be made with
United States Government assistance,
including United States foreign
assistance, United States export
assistance, and any United States credit
or guarantees absent a Presidential
waiver.
§ 560.533 Brokering sales of agricultural
commodities, medicine, and medical
devices.
(a) General license for brokering sales
by U.S. persons. United States persons
are authorized to provide brokerage
services on behalf of U.S. persons for
the sale and exportation or
reexportation by United States persons
of agricultural commodities, medicine,
and medical devices, provided that the
sale and exportation or reexportation is
authorized, as applicable, by a one-year
specific license issued pursuant to
paragraph (a)(1) of § 560.530 or by one
of the general licenses set forth in
paragraphs (a)(2) and (a)(3) of § 560.530.
(b) Specific licensing for brokering
sales by non-U.S. persons of bulk
agricultural commodities. Specific
licenses may be issued on a case-by-case
basis to permit United States persons to
provide brokerage services on behalf of
non-United States, non-Iranian persons
for the sale and exportation or
reexportation of bulk agricultural
commodities to the Government of Iran,
entities in Iran or individuals in Iran.
Specific licenses issued pursuant to this
section will authorize the brokering
only of sales that:
(1) Are limited to the bulk agricultural
commodities listed in appendix B to
this part 560; and
(2) Are to purchasers permitted
pursuant to § 560.530.
Note to paragraph (b)(2) of § 560.533:
Requests for specific licenses to provide
brokerage services under this paragraph must
include all of the information described in
§ 560.530(c).
(c) No debits or credits to Iranian
accounts on the books of U.S.
depository institutions. Payment for any
brokerage fee earned pursuant to this
section may not involve debits or credits
to Iranian accounts, as defined in
§ 560.320.
(d) Recordkeeping and reporting
requirements. Attention is drawn to the
recordkeeping, retention, and reporting
requirements of §§ 501.601 and 501.602
of this chapter.
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§§ 560.534–560.537
[Reserved]
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§ 560.538 Authorized transactions
necessary and ordinarily incident to
publishing.
(a) To the extent that such activities
are not exempt from this part, and
subject to the restrictions set forth in
paragraphs (b) through (d) of this
section, U.S. persons are authorized to
engage in all transactions necessary and
ordinarily incident to the publishing
and marketing of manuscripts, books,
journals, and newspapers in paper or
electronic format (collectively, ‘‘written
publications’’). This section does not
apply if the parties to the transactions
described in this paragraph include the
Government of Iran. For the purposes of
this section, the term ‘‘Government of
Iran’’ includes the state and the
Government of Iran, as well as any
political subdivision, agency, or
instrumentality thereof, which includes
the Central Bank of Iran, and any person
acting or purporting to act directly or
indirectly on behalf of any of the
foregoing with respect to the
transactions described in this paragraph.
For the purposes of this section, the
term ‘‘Government of Iran’’ does not
include any academic and research
institutions and their personnel.
Pursuant to this section, the following
activities are authorized, provided that
U.S. persons ensure that they are not
engaging, without separate
authorization, in the activities identified
in paragraphs (b) through (d) of this
section:
(1) Commissioning and making
advance payments for identifiable
written publications not yet in
existence, to the extent consistent with
industry practice;
(2) Collaborating on the creation and
enhancement of written publications;
(3)(i) Augmenting written
publications through the addition of
items such as photographs, artwork,
translation, explanatory text, and, for a
written publication in electronic format,
the addition of embedded software
necessary for reading, browsing,
navigating, or searching the written
publication; and
(ii) Exporting embedded software
necessary for reading, browsing,
navigating, or searching a written
publication in electronic format,
provided that the software is designated
as ‘‘EAR99’’ under the Export
Administration Regulations, 15 CFR
parts 730 through 774 (the ‘‘EAR’’), or
is not subject to the EAR;
(4) Substantive editing of written
publications;
(5) Payment of royalties for written
publications;
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(6) Creating or undertaking a
marketing campaign to promote a
written publication; and
(7) Other transactions necessary and
ordinarily incident to the publishing
and marketing of written publications as
described in this paragraph (a).
(b) This section does not authorize
transactions involving the provision of
goods or services not necessary and
ordinarily incident to the publishing
and marketing of written publications as
described in paragraph (a) of this
section. For example, this section does
not authorize U.S. persons:
(1) To provide or receive
individualized or customized services
(including, but not limited to,
accounting, legal, design, or consulting
services), other than those necessary
and ordinarily incident to the
publishing and marketing of written
publications, even though such
individualized or customized services
are delivered through the use of
information or informational materials;
(2) To create or undertake for any
person a marketing campaign with
respect to any service or product other
than a written publication, or to create
or undertake a marketing campaign of
any kind for the benefit of the
Government of Iran;
(3) To engage in the exportation or
importation of goods to or from Iran
other than the exportation of embedded
software described in paragraph
(a)(3)(ii) of this section; or
(4) To operate a publishing house,
sales outlet, or other office in Iran.
Note to paragraph (b) of § 560.538: The
importation from Iran and the exportation to
Iran of information or informational
materials, as defined in § 560.315, whether
commercial or otherwise, regardless of format
or medium of transmission, are exempt from
the prohibitions and regulations of this part.
See § 560.210(c).
(c) This section does not authorize
U.S. persons to engage the services of
publishing houses or translators in Iran
unless such activity is primarily for the
dissemination of written publications in
Iran.
(d) This section does not authorize:
(1) The exportation from or
importation into the United States of
services for the development,
production, or design of software;
(2) Transactions for the development,
production, design, or marketing of
technology specifically controlled by
the International Traffic in Arms
Regulations, 22 CFR parts 120 through
130 (the ‘‘ITAR’’), the EAR, or the
Department of Energy Regulations set
forth at 10 CFR part 810;
(3) The exportation of information or
technology subject to the authorization
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requirements of 10 CFR part 810, or
Restricted Data as defined in section
11 y. of the Atomic Energy Act of 1954,
as amended, or of other information,
data, or technology the release of which
is controlled under the Atomic Energy
Act and regulations therein;
(4) The exportation of any item
(including information) subject to the
EAR where a U.S. person knows or has
reason to know that the item will be
used, directly or indirectly, with respect
to certain nuclear, missile, chemical, or
biological weapons or nuclear-maritime
end-uses as set forth in part 744 of the
EAR. In addition, U.S. persons are
precluded from exporting any item
subject to the EAR to certain restricted
end-users, as set forth in part 744 of the
EAR, as well as certain persons whose
export privileges have been denied
pursuant to parts 764 or 766 of the EAR,
without authorization from the
Department of Commerce; or
(5) The exportation of information
subject to licensing requirements under
the ITAR or exchanges of information
that are subject to regulation by other
government agencies.
§ 560.539 Official activities of certain
international organizations.
(a) General license. Except as
provided in paragraph (b) of this
section, all transactions otherwise
prohibited by this part that are for the
conduct of the official business of the
United Nations, the World Bank, the
International Monetary Fund, the
International Atomic Energy Agency,
the International Labor Organization, or
the World Health Organization by
employees, contractors, or grantees
thereof are authorized. Authorized
transactions include, but are not limited
to:
(1) The provision of services
involving Iran necessary for carrying out
the official business;
(2) Purchasing Iranian-origin goods
and services for use in carrying out the
official business;
(3) Leasing office space and securing
related goods and services;
(4) Funds transfers to or from
accounts of the international
organizations covered in this paragraph,
provided that funds transfers to or from
Iran are not routed through an account
of an Iranian bank on the books of a U.S.
financial institution; and
(5) The operation of accounts for
employees, contractors, and grantees
located in Iran who are described in this
paragraph. Transactions conducted
through these accounts must be solely
for the employee’s, contractor’s, or
grantee’s personal use and not for any
commercial purposes in or involving
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Iran. Any funds transfers to or from an
Iranian bank must be routed through a
third-country bank that is not a U.S.
person.
(b) Limitations. This section does not
authorize:
(1) The exportation from the United
States to Iran of any goods or technology
listed on the Commerce Control List in
the Export Administration Regulations,
15 CFR part 774, supplement No. 1
(CCL);
(2) The reexportation to Iran of any
U.S.-origin goods or technology listed
on the CCL; or
(3) The exportation or reexportation
from the United States or by a U.S.
person, wherever located, to Iran of any
services not necessary and ordinarily
incident to the official business in Iran.
Such transactions require separate
authorization from OFAC.
Note to paragraph (b) of § 560.539: The
CCL includes items such as many laptop
computers, personal computers, cell phones,
personal digital assistants and other wireless
handheld devices/blackberries, and other
similar items. The exportation of these items
to Iran, even on a temporary basis, is
prohibited, unless specifically authorized in
a license issued pursuant to this part in a
manner consistent with the Iran-Iraq Arms
Nonproliferation Act of 1992 and other
relevant law.
Note to § 560.539: The general license set
forth in this section does not relieve any
persons authorized thereunder from
compliance with any other U.S. legal
requirements applicable to the transactions
authorized pursuant to paragraph (a) of this
section.
srobinson on DSK4SPTVN1PROD with
§ 560.540 Exportation of certain services
and software incident to Internet-based
communications.
(a) To the extent that such
transactions are not exempt from the
prohibitions of this part and subject to
the restrictions set forth in paragraph (b)
of this section, the following
transactions are authorized:
(1) The exportation from the United
States or by U.S. persons, wherever
located, to persons in Iran of services
incident to the exchange of personal
communications over the Internet, such
as instant messaging, chat and email,
social networking, sharing of photos and
movies, web browsing, and blogging,
provided that such services are publicly
available at no cost to the user.
(2) The exportation from the United
States or by U.S. persons, wherever
located, to persons in Iran of software
necessary to enable the services
described in paragraph (a)(1) of this
section, provided that such software is
designated as EAR99 under the Export
Administration Regulations, 15 CFR
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parts 730 through 774 (the ‘‘EAR’’), is
not subject to the EAR, or is classified
by the U.S. Department of Commerce
(‘‘Commerce’’) as mass market software
under export control classification
number (‘‘ECCN’’) 5D992 of the EAR,
and provided further that such software
is publicly available at no cost to the
user.
(b) This section does not authorize:
(1) The direct or indirect exportation
of services or software with knowledge
or reason to know that such services or
software are intended for the
Government of Iran;
(2) The direct or indirect exportation
of any goods or technology listed on the
Commerce Control List in the EAR, 15
CFR part 774, supplement No. 1
(‘‘CCL’’), except for software necessary
to enable the services described in
paragraph (a)(1) of this section that is
classified by Commerce as mass market
software under ECCN 5D992 of the EAR;
(3) The direct or indirect exportation
of Internet connectivity services or
telecommunications transmission
facilities (such as satellite or terrestrial
network connectivity); or
(4) The direct or indirect exportation
of web-hosting services that are for
purposes other than personal
communications (e.g., web-hosting
services for commercial endeavors) or of
domain name registration services.
(c) Specific licenses may be issued on
a case-by-case basis for the exportation
of other, including fee-based, services
and software incident to the sharing of
information over the Internet, provided
the software is designated as EAR99, is
not subject to the EAR, or is classified
by Commerce as mass market software
under ECCN 5D992 of the EAR.
§ 560.541 Third-country diplomatic and
consular funds transfers.
United States depository institutions
and United States registered brokers or
dealers in securities are authorized to
process funds transfers, in a manner
consistent with § 560.516, for the
operating expenses or other official
business of third-country diplomatic or
consular missions in Iran.
§ 560.542 Importation and exportation of
human remains for burial, cremation, or
interment authorized.
(a) The importation into the United
States of human remains for burial,
cremation, or interment, as well as of
coffins or other receptacles containing
such human remains, from Iran is
authorized.
(b) The importation into the United
States for non-commercial purposes of
finished tombstones or grave markers of
Iranian origin is authorized.
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(c) The direct or indirect exportation
from the United States, or by a United
States person, wherever located, of
human remains for burial, cremation, or
interment, as well as of coffins or other
receptacles containing such human
remains, to Iran is authorized.
(d) This section does not authorize the
importation into the United States of
Iranian-origin cultural property or other
items of archaeological, historical, or
rare scientific importance.
§ 560.543 Sale of certain real property in
Iran and transfer of related funds to the
United States.
(a) Individuals who are U.S. persons
are authorized to engage in transactions
necessary and ordinarily incident to the
sale of real property in Iran and to
transfer the proceeds to the United
States, provided that such real property
was either acquired before the
individual became a U.S. person, or
inherited from persons in Iran.
Authorized transactions include, but are
not limited to, engaging the services of
any persons in Iran necessary for the
sale, such as an attorney, funds agent,
and/or real estate broker.
(b) This section does not authorize:
(1) The wind-down of commercial
enterprises in Iran;
(2) The re-investment in Iran of the
proceeds from the real property sales
authorized in paragraph (a) of this
section; or
(3) The exportation or reexportation to
Iran of any goods (including software) or
technology.
§ 560.544 Certain educational activities by
U.S. persons in third countries authorized.
(a) Subject to the restriction set forth
in paragraph (c) of this section,
accredited undergraduate degreegranting academic institutions
organized under the laws of the United
States or any jurisdiction within the
United States or located in the United
States (‘‘U.S. undergraduate
institutions’’) with undergraduate
educational programs or undergraduate
exchange programs in countries other
than the United States or Iran are
authorized to engage in the following
activities with respect to such programs
in the humanities, social sciences, law,
and business:
(1) Recruit, hire, and employ faculty
and staff who are ordinarily resident in
Iran;
(2) Recruit, enroll, and educate
students who are ordinarily resident in
Iran;
(3) Enter into and perform exchange
agreements with Iranian universities;
(4) Provide scholarships to students
ordinarily resident in Iran; and
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(5) Recruit individuals ordinarily
resident in Iran, such as scholars, artists,
performers, speakers, alumni, and
students, to participate in events, such
as conferences, lectures, film series,
research workshops, exhibitions,
theatrical and musical performances,
and continuing education courses. U.S.
undergraduate institutions are
authorized to provide compensation,
including honoraria, to such
individuals.
(b) Subject to the restriction set forth
in paragraph (c) of this section:
(1) Paragraph (a)(2) of this section
authorizes the release of technology or
software to students ordinarily resident
in Iran, provided that all of the
following requirements are met:
(i) Such release is ordinarily incident
and necessary to the undergraduate
educational program or the
undergraduate exchange program at the
U.S. undergraduate institution in which
the student is enrolled;
(ii) The technology or software being
released is designated as EAR99 under
the Export Administration Regulations,
15 CFR parts 730 through 774 (the
‘‘EAR’’), or constitutes Educational
Information not subject to the EAR, as
set forth in 15 CFR 734.9;
(iii) The release does not otherwise
require a license from the Department of
Commerce; and
(iv) The student to whom the release
is made is not enrolled in the
undergraduate educational program, or
participating in the undergraduate
exchange program, as an agent,
employee, or contractor of the
Government of Iran or a business entity
or other organization in Iran.
(2) This section authorizes enrollment
in undergraduate courses in math,
sciences, and engineering that are
required or electives for undergraduate
programs in the humanities, social
sciences, law, or business provided the
following conditions are met:
(i) The undergraduate courses are
required for the completion of the
humanities, social sciences, law, or
business program and are for
‘‘introductory,’’ non-major, freshman or
sophomore equivalent courses only; or
(ii) The undergraduate courses are
required for the completion of the
humanities, social sciences, law, or
business program and are math-related
accounting or economics classes at any
undergraduate level, not to include
courses allowing for any post-graduate
work.
(c) This section does not authorize the
exportation or reexportation to Iran or
the Government of Iran of any goods
(including software) or technology,
including any release of technology or
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software described in § 560.418 of this
part, except as expressly authorized in
paragraph (b) of this section.
(d) Specific licenses may be issued on
a case-by-case basis authorizing
accredited graduate degree-granting
academic institutions organized under
the laws of the United States or any
jurisdiction within the United States or
located in the United States with
graduate educational programs or
graduate exchange programs in third
countries to recruit, hire, and employ
faculty and staff who are ordinarily
resident in Iran for such third-country
graduate educational programs in the
humanities, social sciences, law, and
business or graduate exchange programs
in the humanities, social sciences, law,
and business, and to recruit, enroll, and
educate students who are ordinarily
resident in Iran in such third-country
graduate educational programs in the
humanities, social sciences, law, and
business or graduate exchange programs
in the humanities, social sciences, law,
and business.
§ 560.545 Democracy and human rights in
Iran and academic and cultural exchange
programs.
(a) Specific licenses may be issued on
a case-by-case basis to authorize
nongovernmental organizations and
other entities organized under the laws
of the United States or any jurisdiction
within the United States or located in
the United States to engage in the
following projects or activities in or
related to Iran that are designed to
directly benefit the Iranian people:
(1) Projects, including conferences
and training, to support human rights,
democratic freedoms, and democratic
institutions and to meet basic human
needs; and
(2) The establishment or support of
independent civic organizations.
(b) Specific licenses may be issued on
a case-by-case basis to authorize U.S.
persons to engage in the following
projects or activities in or related to Iran
that are designed to directly benefit the
Iranian people:
(1) The provision of donated
professional medical services;
(2) Certain targeted educational,
cultural, and sports exchange programs,
provided such programs are not in
furtherance of Iranian military,
industrial, or technological
infrastructure or potential;
(3) Environmental projects, provided
such projects are not in furtherance of
Iranian military or industrial
infrastructure or potential; and
(4) Projects, including exchanges and
technical training, to improve the flow
of public information through
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independent media available to the
Iranian public.
(c) Specific licenses issued pursuant
to this section generally will not
authorize the exportation or
reexportation to Iran of goods (including
software) and technology listed on the
Commerce Control List in the Export
Administration Regulations, 15 CFR
part 774, supplement No. 1 (CCL).
Note 1 to § 560.545: The CCL includes
items such as many laptop computers,
personal computers, cell phones, personal
digital assistants and other wireless handheld
devices/blackberries, and other similar items.
The exportation or reexportation of these
items to Iran, even on a temporary basis, is
prohibited, unless specifically authorized in
a license issued pursuant to this part in a
manner consistent with the Iran-Iraq Arms
Nonproliferation Act of 1992 and other
relevant law.
§ 560.546 Payments and transfers to
blocked accounts in U.S. financial
institutions.
Any payment of funds or transfer of
credit in which the Government of Iran,
an Iranian financial institution, or any
other person whose property and
interests in property are blocked
pursuant to § 560.211 has any interest
that comes within the possession or
control of a U.S. financial institution
must be blocked in an account on the
books of that financial institution. A
transfer of funds or credit by a U.S.
financial institution between blocked
accounts in its branches or offices is
authorized, provided that no transfer is
made from an account within the
United States to an account held outside
the United States, and further provided
that a transfer from a blocked account
may be made only to another blocked
account held in the same name.
Note to § 560.546: See § 501.603 of this
chapter for mandatory reporting
requirements regarding financial transfers.
See also § 560.213 of this part concerning the
obligation to hold blocked funds in interestbearing accounts.
§ 560.547 Entries in certain accounts for
normal service charges authorized.
(a) A U.S. financial institution is
authorized to debit any blocked account
held at that financial institution in
payment or reimbursement for normal
service charges owed it by the owner of
that blocked account.
(b) As used in this section, the term
normal service charges shall include
charges in payment or reimbursement
for interest due; cable, telegraph,
Internet, or telephone charges; postage
costs; custody fees; small adjustment
charges to correct bookkeeping errors;
and, but not by way of limitation,
minimum balance charges, notary and
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protest fees, and charges for reference
books, photocopies, credit reports,
transcripts of statements, registered
mail, insurance, stationery and supplies,
and other similar items.
Note to § 560.547: See § 560.517, which
authorizes U.S. depository institutions and
U.S. registered brokers or dealers in
securities to provide and be compensated for
services with respect to the limited
maintenance of Iranian accounts other than
blocked accounts, including the payment of
interest and dividends and the debiting of
service charges.
§ 560.548 Investment and reinvestment of
certain funds.
Subject to the requirements of
§ 560.213, U.S. financial institutions are
authorized to invest and reinvest assets
blocked pursuant to § 560.211, subject
to the following conditions:
(a) The assets representing such
investments and reinvestments are
credited to a blocked account or
subaccount that is held in the same
name at the same U.S. financial
institution, or within the possession or
control of a U.S. person, but funds shall
not be transferred outside the United
States for this purpose;
(b) The proceeds of such investments
and reinvestments shall not be credited
to a blocked account or subaccount
under any name or designation that
differs from the name or designation of
the specific blocked account or
subaccount in which such funds or
securities were held; and
(c) No immediate financial or
economic benefit accrues (e.g., through
pledging or other use) to a person whose
property and interests in property are
blocked pursuant to § 560.211.
§ 560.549 Policy governing Iranian news
organizations’ offices in the United States.
Specific licenses may be issued on a
case-by-case basis authorizing
transactions necessary for the
establishment and operation of news
bureaus in the United States by Iranian
organizations whose primary purpose is
the gathering and dissemination of news
to the general public.
srobinson on DSK4SPTVN1PROD with
§ 560.550 Certain noncommercial,
personal remittances to or from Iran
authorized.
(a) In cases in which the transfer
involves a noncommercial, personal
remittance, the transfer of funds to or
from Iran or for or on behalf of an
individual ordinarily resident in Iran,
other than an individual whose property
and interests in property are blocked
pursuant to § 560.211, is authorized,
provided that the transfer is processed
by a United States depository institution
or a United States registered broker or
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dealer in securities and not by any other
U.S. person; does not involve debiting
or crediting an Iranian account; and is
not by, to, or through the Government
of Iran, as defined in § 560.304.
(b) Noncommercial, personal
remittances do not include charitable
donations to or for the benefit of an
entity or funds transfers for use in
supporting or operating a business,
including a family-owned enterprise.
Note to paragraph (b) of § 560.550:
Charitable donations of funds to or for the
benefit of an entity in Iran require a specific
license.
(c) The transferring institutions
identified in paragraph (a) of this
section may rely on the originator of a
funds transfer with regard to
compliance with paragraph (a) of this
section, provided that the transferring
institution does not know or have
reason to know that the funds transfer
is not in compliance with paragraph (a)
of this section.
(d) An individual who is a U.S.
person is authorized to carry funds as a
noncommercial, personal remittance, as
described in paragraphs (a) and (b) of
this section, to an individual in Iran or
ordinarily resident in Iran, other than an
individual whose property and interests
in property are blocked pursuant to
§ 560.211, provided that the individual
who is a U.S. person is carrying the
funds on his or her behalf, but not on
behalf of another person.
§ 560.551 Student loan payments from
persons in Iran authorized.
United States depository institutions
and private loan companies are
authorized to engage in all transactions
necessary to collect, accept, and process
student loan payments from persons in
Iran or ordinarily resident in Iran.
§ 560.552 Transactions related to U.S.
citizens residing in Iran.
(a) Except as provided by paragraph
(b) of this section, U.S. persons are
authorized to engage in transactions in
Iran ordinarily incident to the routine
and necessary maintenance and other
personal living expenses of U.S. citizens
who reside on a permanent basis in Iran.
(b) Nothing in this section authorizes
transactions related to employment by
U.S. persons in Iran.
§ 560.553 Payments from funds originating
outside the United States authorized.
Effective October 22, 2012, receipts of
payment of professional fees and
reimbursement of incurred expenses for
the provision of legal services
authorized pursuant to § 560.525(a) to or
on behalf of the Government of Iran, an
Iranian financial institution, or any
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other person whose property and
interests in property are blocked
pursuant to § 560.211 are authorized
from funds originating outside the
United States, provided that:
(a) Prior to receiving payment for legal
services authorized pursuant to
§ 560.525(a) rendered to the
Government of Iran, an Iranian financial
institution, or any other person whose
property and interests in property are
blocked pursuant to § 560.211, the U.S.
person that is an attorney, law firm, or
legal services organization provides to
the Office of Foreign Assets Control a
copy of a letter of engagement or a letter
of intent to engage specifying the
services to be performed and signed by
the individual to whom such services
are to be provided or, where services are
to be provided to an entity, by a legal
representative of the entity. The copy of
a letter of engagement or a letter of
intent to engage, accompanied by
correspondence referencing this
paragraph (a), is to be mailed to:
Licensing Division, Office of Foreign
Assets Control, U.S. Department of the
Treasury, 1500 Pennsylvania Avenue
NW., Annex, Washington, DC 20220;
(b) The funds received by U.S.
persons as payment of professional fees
and reimbursement of incurred
expenses for the provision of legal
services authorized pursuant to
§ 560.525(a) must not originate from:
(1) A source within the United States;
(2) Any source, wherever located,
within the possession or control of a
U.S. person; or
(3) Any individual or entity, other
than the person on whose behalf the
legal services authorized pursuant to
§ 560.525(a) are to be provided, whose
property and interests in property are
blocked pursuant to any part of this
chapter or any Executive order; and
Note to paragraph (b) of § 560.553: This
paragraph authorizes the blocked person on
whose behalf the legal services authorized
pursuant to § 560.525(a) are to be provided to
make payments for authorized legal services
using funds originating outside the United
States that were not previously blocked.
Nothing in this paragraph authorizes
payments for legal services using funds in
which any other person whose property and
interests in property are blocked pursuant to
any part of this chapter or any Executive
order holds an interest.
(c) Reports. (1) U.S. persons who
receive payments pursuant to this
section in connection with legal services
authorized pursuant to § 560.525(a)
must submit quarterly reports providing
information on the funds received, no
later than 30 days following the end of
the calendar quarter during which the
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payments were received. Such reports
shall specify:
(i) The individual or entity from
whom the funds originated and the
amount of funds received; and
(ii) If applicable:
(A) The names of any individuals or
entities providing related services to the
U.S. person receiving payment in
connection with authorized legal
services, such as private investigators or
expert witnesses;
(B) A general description of the
services provided; and
(C) The amount of funds paid in
connection with such services;
(2) In the event that no transactions
occur or no funds are received during
the reporting period, a statement is to be
filed to that effect; and
(3) The reports, which must reference
this section, are to be mailed to:
Licensing Division, Office of Foreign
Assets Control, U.S. Department of the
Treasury, 1500 Pennsylvania Avenue
NW., Annex, Washington, DC 20220.
Note 1 to § 560.553: U.S. persons who
receive payments in connection with legal
services authorized pursuant to § 560.525(a)
do not need to obtain specific authorization
to contract for related services that are
ordinarily incident to the provision of those
legal services, such as those provided by
private investigators or expert witnesses, or
to pay for such services. Additionally, U.S.
persons do not need to obtain specific
authorization to provide related services that
are ordinarily incident to the provision of
legal services authorized pursuant to
§ 560.525(a).
Note 2 to § 560.553: Any payment
authorized in or pursuant to this section that
is routed through the U.S. financial system
should reference this § 560.553 to avoid the
blocking of the transfer.
Note 3 to § 560.553: Nothing in this section
authorizes the transfer of any blocked
property, the debiting of any blocked
account, the entry of any judgment or order
that effects a transfer of blocked property, or
the execution of any judgment against
property blocked pursuant to any part of this
chapter or any Executive order.
srobinson on DSK4SPTVN1PROD with
§ 560.554 Importation and exportation of
services related to conferences in the
United States or third countries authorized.
(a) Subject to the restrictions in
paragraph (c) of this section, the
importation of Iranian-origin services
into the United States or other dealing
in such services and the exportation,
reexportation, sale, or supply of services
from the United States or by a U.S.
person are authorized where such
services are performed or provided in
the United States by or for a person who
is ordinarily resident in Iran, other than
the Government of Iran, an Iranian
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financial institution, or any other person
whose property and interests in
property are blocked pursuant to
§ 560.211, for the purpose of, or which
directly relate to, participating in a
public conference, performance,
exhibition or similar event, and such
services are consistent with that
purpose.
(b) To the extent not otherwise
exempt from the prohibitions of this
part and subject to the restrictions in
paragraph (c) of this section, the
exportation, reexportation, sale, or
supply of services directly related to the
sponsorship by a U.S. person of a public
conference or other similar public event
in a third country that is attended by
persons who are ordinarily resident in
Iran, other than the Government of Iran,
an Iranian financial institution, or any
other person whose property and
interests in property are blocked
pursuant to § 560.211, is authorized,
provided that attendance and
participation at the conference or other
similar public event is open for the
public and that the conference or other
similar event is not tailored in whole or
in part to or for Iran or persons who are
ordinarily resident in Iran.
(c) This section does not authorize:
(1) Any release of technology or
software to a person who is ordinarily
resident in Iran; and
(2) The exportation, reexportation,
sale or supply of services, or the
importation of Iranian-origin services or
other dealing in such services, related to
the petroleum or petrochemical
industries, energy development, crude
oil or natural gas, pipelines, or the oil
services industry.
Subpart F—Reports
§ 560.601
Records and reports.
For provisions relating to required
records and reports, see part 501,
subpart C, of this chapter.
Recordkeeping and reporting
requirements imposed by part 501 of
this chapter with respect to the
prohibitions contained in this part are
considered requirements arising
pursuant to this part.
§§ 560.602–560.603
[Reserved]
Subpart G—Penalties
§ 560.701
Penalties.
(a) Attention is directed to section 206
of the International Emergency
Economic Powers Act (50 U.S.C. 1705)
(‘‘IEEPA’’), which is applicable to
violations of the provisions of any
license, ruling, regulation, order,
directive, or instruction issued by or
pursuant to the direction or
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64689
authorization of the Secretary of the
Treasury pursuant to this part or
otherwise under IEEPA.
(1) A civil penalty not to exceed the
amount set forth in section 206 of IEEPA
may be imposed on any person who
violates, attempts to violate, conspires
to violate, or causes a violation of any
license, order, regulation, or prohibition
issued under IEEPA.
Note to paragraph (a)(1) of § 560.701: As
of the date of publication in the Federal
Register of the final rule amending and
reissuing this part (October 22, 2012), IEEPA
provides for a maximum civil penalty not to
exceed the greater of $250,000 or an amount
that is twice the amount of the transaction
that is the basis of the violation with respect
to which the penalty is imposed.
(2) A person who willfully commits,
willfully attempts to commit, or
willfully conspires to commit, or aids or
abets in the commission of a violation
of any license, order, regulation, or
prohibition may, upon conviction, be
fined not more than $1,000,000, or if a
natural person, be imprisoned for not
more than 20 years, or both.
(b) Adjustments to penalty amounts.
(1) The civil penalties provided in
IEEPA are subject to adjustment
pursuant to the Federal Civil Penalties
Inflation Adjustment Act of 1990 (Pub.
L. 101–410, as amended, 28 U.S.C. 2461
note).
(2) The criminal penalties provided in
IEEPA are subject to adjustment
pursuant to 18 U.S.C. 3571.
(c) Attention is also directed to 18
U.S.C. 1001, which provides that
whoever, in any matter within the
jurisdiction of the executive, legislative,
or judicial branch of the Government of
the United States, knowingly and
willfully falsifies, conceals, or covers up
by any trick, scheme, or device a
material fact, or makes any materially
false, fictitious, or fraudulent statement
or representation, or makes or uses any
false writing or document knowing the
same to contain any materially false,
fictitious, or fraudulent statement or
entry shall be fined under title 18,
United States Code, or imprisoned, or
both.
(d) Attention is directed to 18 U.S.C.
2332d, as added by Public Law 104–
132, section 321, which provides that,
except as provided in regulations issued
by the Secretary of the Treasury, in
consultation with the Secretary of State,
a U.S. person, knowing or having
reasonable cause to know that a country
is designated under section 6(j) of the
Export Administration Act, 50 U.S.C.
App. 2405, as a country supporting
international terrorism, engages in a
financial transaction with the
government of that country, shall be
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fined under title 18, United States Code,
or imprisoned for not more than 10
years, or both.
(e) Violations of this part may also be
subject to relevant provisions of
Customs laws and other applicable
laws.
§ 560.702
Detention of shipments.
Import shipments into the United
States of Iranian-origin goods in
violation of § 560.201 and export
shipments from the United States of
goods destined for Iran in violation of
§ 560.204 shall be detained. No such
import, export, or reexport will be
permitted to proceed, except as
specifically authorized by or on behalf
of the Secretary of the Treasury. Unless
licensed, such shipments are subject to
penalty or seizure and forfeiture action,
under the customs laws or other
applicable provisions of law, depending
on the circumstances.
srobinson on DSK4SPTVN1PROD with
§ 560.703
Pre-Penalty Notice; settlement.
(a) When required. If the Office of
Foreign Assets Control has reason to
believe that there has occurred a
violation of any provision of this part or
a violation of the provisions of any
license, ruling, regulation, order,
direction, or instruction issued by or
pursuant to the direction or
authorization of the Secretary of the
Treasury pursuant to this part or
otherwise under IEEPA and determines
that a civil monetary penalty is
warranted, the Office of Foreign Assets
Control will issue a Pre-Penalty Notice
informing the alleged violator of the
agency’s intent to impose a monetary
penalty. A Pre-Penalty Notice shall be in
writing. The Pre-Penalty Notice may be
issued whether or not another agency
has taken any action with respect to the
matter. For a description of the contents
of a Pre-Penalty Notice, see Appendix A
to part 501 of this chapter.
(b)(1) Right to respond. An alleged
violator has the right to respond to a
Pre-Penalty Notice by making a written
presentation to the Office of Foreign
Assets Control. For a description of the
information that should be included in
such a response, see Appendix A to part
501 of this chapter.
(2) Deadline for response. A response
to a Pre-Penalty Notice must be made
within the applicable 30-day period set
forth in this paragraph. The failure to
submit a response within the applicable
time period set forth in this paragraph
shall be deemed to be a waiver of the
right to respond.
(i) Computation of time for response.
A response to a Pre-Penalty Notice must
be postmarked or date-stamped by the
U.S. Postal Service (or foreign postal
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service, if mailed abroad) or courier
service provider (if transmitted to the
Office of Foreign Assets Control by
courier) on or before the 30th day after
the postmark date on the envelope in
which the Pre-Penalty Notice was
mailed. If the Pre-Penalty Notice was
personally delivered by a non-U.S.
Postal Service agent authorized by the
Office of Foreign Assets Control, a
response must be postmarked or datestamped on or before the 30th day after
the date of delivery.
(ii) Extensions of time for response. If
a due date falls on a federal holiday or
weekend, that due date is extended to
include the following business day. Any
other extensions of time will be granted,
at the discretion of the Office of Foreign
Assets Control, only upon specific
request to the Office of Foreign Assets
Control.
(3) Form and method of response. A
response to a Pre-Penalty Notice need
not be in any particular form, but it
must be typewritten and signed by the
alleged violator or a representative
thereof, must contain information
sufficient to indicate that it is in
response to the Pre-Penalty Notice, and
must include the Office of Foreign
Assets Control identification number
listed on the Pre-Penalty Notice. A copy
of the written response may be sent by
facsimile, but the original also must be
sent to the Office of Foreign Assets
Control Civil Penalties Division by mail
or courier and must be postmarked or
date-stamped in accordance with
paragraph (b)(2) of this section.
(c) Settlement. Settlement discussion
may be initiated by the Office of Foreign
Assets Control, the alleged violator, or
the alleged violator’s authorized
representative. For a description of
practices with respect to settlement, see
Appendix A to part 501 of this chapter.
(d) Guidelines. Guidelines for the
imposition or settlement of civil
penalties by the Office of Foreign Assets
Control are contained in Appendix A to
part 501 of this chapter.
(e) Representation. A representative of
the alleged violator may act on behalf of
the alleged violator, but any oral
communication with the Office of
Foreign Assets Control prior to a written
submission regarding the specific
allegations contained in the Pre-Penalty
Notice must be preceded by a written
letter of representation, unless the PrePenalty Notice was served upon the
alleged violator in care of the
representative.
§ 560.704
Penalty imposition.
If, after considering any written
response to the Pre-Penalty Notice and
any relevant facts, the Office of Foreign
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Assets Control determines that there
was a violation by the alleged violator
named in the Pre-Penalty Notice and
that a civil monetary penalty is
appropriate, the Office of Foreign Assets
Control may issue a Penalty Notice to
the violator containing a determination
of the violation and the imposition of
the monetary penalty. For additional
details concerning issuance of a Penalty
Notice, see Appendix A to part 501 of
this chapter. The issuance of the Penalty
Notice shall constitute final agency
action. The violator has the right to seek
judicial review of that final agency
action in federal district court.
§ 560.705 Administrative collection;
referral to United States Department of
Justice.
In the event that the violator does not
pay the penalty imposed pursuant to
this part or make payment arrangements
acceptable to the Office of Foreign
Assets Control, the matter may be
referred for administrative collection
measures by the Department of the
Treasury or to the United States
Department of Justice for appropriate
action to recover the penalty in a civil
suit in a federal district court.
Subpart H—Procedures
§ 560.801
Procedures.
For license application procedures
and procedures relating to amendments,
modifications, or revocations of
licenses; administrative decisions;
rulemaking; and requests for documents
pursuant to the Freedom of Information
and Privacy Acts (5 U.S.C. 552 and
552a), see part 501, subpart E, of this
chapter.
§ 560.802 Delegation by the Secretary of
the Treasury.
Any action that the Secretary of the
Treasury is authorized to take pursuant
to Executive Order 12613 of October 29,
1987 (3 CFR, 1987 Comp., p. 256),
Executive Order 12957 of March 15,
1995 (3 CFR, 1995 Comp., p. 332),
Executive Order 12959 of May 6, 1995
(3 CFR, 1995 Comp., p. 356), Executive
Order 13059 of August 19, 1997 (3 CFR,
1997 Comp., p. 217), Executive Order
13599 of February 5, 2012 (77 FR 6659,
February 8, 2012), and any further
Executive orders relating to the national
emergency declared in Executive Order
12957, may be taken by the Director of
the Office of Foreign Assets Control or
by any other person to whom the
Secretary of the Treasury has delegated
authority so to act.
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§ 560.803
[Reserved]
Subpart I—Paperwork Reduction Act
§ 560.901
Paperwork Reduction Act notice.
For approval by the Office of
Management and Budget (‘‘OMB’’)
under the Paperwork Reduction Act of
1995 (44 U.S.C. 3507) of information
collections relating to recordkeeping
and reporting requirements, licensing
procedures (including those pursuant to
statements of licensing policy), and
other procedures, see § 501.901 of this
chapter. An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a valid control
number assigned by OMB.
64691
Appendix A to Part 560 [Reserved]
Appendix B to Part 560—Bulk
Agricultural Commodities
Notes: 1. Appendix B sets forth those bulk
agricultural commodities eligible for sale
pursuant to the licensing procedures and the
general license in § 560.530.
2. Commodities are identified by their
classification numbers in the Harmonized
Tariff Schedule of the United States (see 19
U.S.C. 1202) (‘‘HTS’’).
HTS No.
Commodity
1001.10 ......................
1001.90 ......................
Durum Wheat.
Other Wheat and Meslin, including seed, Red Spring Wheat, White Winter Wheat, ‘‘Canadian’’ Western Red Winter
Wheat, Soft White Spring Wheat, and Wheat not elsewhere specified.
Wheat or Meslin Flour.
Rice in the husk (paddy or rough).
Husked (brown) Rice.
Semi-milled or wholly milled Rice, whether or not polished or glazed.
Broken Rice.
Rice Flour.
Rice Groats, Meal and Pellets.
Rye.
Barley.
Oats.
Grain Sorghum.
Corn (Maize).
Dried Beans including Vigna mungo (L.), Hepper, and Vigna radiata (L.) Wilczek.
Small red (adzuki) beans.
Kidney beans, including white pea beans.
Beans, other.
Broad beans and horse beans.
Dried Peas (Pisum sativum).
Chickpeas (garbanzos).
Lentils.
Dried leguminous vegetables, shelled, not elsewhere specified.
Soybeans, whether or not broken.
Soybean cake, meal and pellets.
Soybean oil, crude.
Soybean oil, other.
Rapeseed, colza and mustard oil, crude.
Rapeseed, colza and mustard oil, other.
Corn (Maize) oil, crude.
Corn (Maize) oil, other.
Cottonseed oil, crude.
Cottonseed oil, other.
Cottonseed oil, hydrogenated.
Peanut (ground-nut) oil, crude.
Peanut (ground-nut) oil, other.
Sesame oil.
Sunflower-seed oil, crude.
Sunflower-seed oil, other.
Sugar Beets, fresh, chilled, frozen or dried.
Sugar Cane, fresh, chilled, frozen or dried.
Cane Sugar, raw, solid form.
Beet Sugar, raw, solid form.
Cane or Beet Sugar, solid form, containing added coloring or flavoring.
Cane or Beet Sugar, other, not elsewhere specified.
1101.00
1006.10
1006.20
1006.30
1006.40
1102.30
1103.14
1002.00
1003.00
1004.00
1007.00
1005.00
0713.31
0713.32
0713.33
0713.39
0713.50
0713.10
0713.20
0713.40
0713.90
1201.00
2304.00
1507.10
1507.90
1514.10
1514.90
1515.21
1515.29
1512.21
1512.29
1517.90
1508.10
1508.90
1515.50
1512.11
1512.19
1212.91
1212.92
1701.11
1701.12
1701.91
1701.99
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Appendix C to Part 560—[Reserved]
Appendix A to Chapter V—[Amended]
2. The authority citation for Appendix
A to Chapter V continues to read as
follows:
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■
Authority: 3 U.S.C. 301; 8 U.S.C. 1182,
1189; 18 U.S.C. 2339b; 21 U.S.C. 1091–1908;
22 U.S.C. 287C; 31 U.S.C. 321(b); 50 U.S.C.
App. 1–44; Pub. L. 110–286, 122 Stat. 2632;
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Pub. L. 111–195, 124 Stat. 1312 (22 U.S.C.
8501–8551); Pub. L. 112–81, 125 Stat. 1298.
3. 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
*
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*
*
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*
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*
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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 § 560.211 of
the Iranian Transactions and Sanctions
Regulations, 31 CFR part 560 (the ‘‘ITSR’’).
The SDN List entries for such persons
include the identifier ‘‘[IRAN].’’ U.S. persons
are advised to review 31 CFR part 560 prior
to engaging in transactions involving the
E:\FR\FM\22OCR2.SGM
22OCR2
64692
Federal Register / Vol. 77, No. 204 / Monday, October 22, 2012 / Rules and Regulations
persons included on the SDN List with the
identifier ‘‘[IRAN].’’ U.S. persons are further
cautioned that persons identified as the
Government of Iran, an Iranian financial
institution, or any other person whose
property and interests in property are
blocked pursuant to 31 CFR 560.211 also may
be designated or blocked pursuant to other
sanctions programs administered by OFAC.
The SDN List entry for such a person may
include—in addition to the identifier
‘‘[IRAN]’’—identifier(s) for the other
sanctions program(s) pursuant to which the
person is listed on the SDN List. Moreover,
the prohibitions set forth in the ITSR, and the
compliance obligations, with respect to
persons who fall within the definition of the
Government of Iran in § 560.304 of the ITSR
apply regardless of whether such persons are
identified on the SDN List.
Dated: October 15, 2012.
Adam J. Szubin,
Director, Office of Foreign Assets Control.
Approved: October 15, 2012.
David S. Cohen,
Under Secretary, Office of Terrorism and
Financial Intelligence, Department of the
Treasury.
[FR Doc. 2012–25770 Filed 10–19–12; 8:45 am]
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22OCR2
Agencies
[Federal Register Volume 77, Number 204 (Monday, October 22, 2012)]
[Rules and Regulations]
[Pages 64663-64692]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-25770]
[[Page 64663]]
Vol. 77
Monday,
No. 204
October 22, 2012
Part III
Department of the Treasury
-----------------------------------------------------------------------
Foreign Assets Control Office
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31 CFR Part 560
Iranian Transactions Regulations; Final Rule
Federal Register / Vol. 77 , No. 204 / Monday, October 22, 2012 /
Rules and Regulations
[[Page 64664]]
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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.
-----------------------------------------------------------------------
SUMMARY: The Department of the Treasury's Office of Foreign Assets
Control (``OFAC'') is changing the heading of the Iranian Transactions
Regulations to the Iranian Transactions and Sanctions Regulations (the
``ITSR''), amending the renamed ITSR, and reissuing them in their
entirety, to implement Executive Order 13599 of February 5, 2012
(``Blocking Property of the Government of Iran and Iranian Financial
Institutions''), and subsections 1245(c) and (d)(1)(B) of the National
Defense Authorization Act for Fiscal Year 2012 (the ``NDAA''). OFAC
also is adding several new general licenses to the ITSR, removing a few
general licenses, and incorporating into the ITSR a general license and
a statement of licensing policy that, until now, have appeared only on
OFAC's Web site on the Iran sanctions page. Finally, OFAC is updating
certain provisions of the ITSR and making other technical and
conforming changes. The ITSR are separate and apart from the Iranian
Financial Sanctions Regulations, 31 CFR part 561, as amended and
reissued in their entirety on February 27, 2012, which were promulgated
to implement the Comprehensive Iran Sanctions, Accountability, and
Divestment Act of 2010, as well as the provisions of section 1245 of
the NDAA other than those set forth above.
DATES: Effective Date: October 22, 2012.
FOR FURTHER INFORMATION CONTACT: Assistant Director for Sanctions
Compliance & Evaluation, 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 (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
The Iranian Transactions Regulations, 31 CFR part 560 (the
``ITR''), implement a series of Executive orders that began with
Executive Order 12613, which was issued on October 29, 1987, pursuant
to authorities including the International Security and Development
Cooperation Act of 1985 (22 U.S.C. 2349aa-9). In that Order, the
President prohibited the importation of Iranian-origin goods and
services. Subsequently, in Executive Order 12957, issued on March 15,
1995 (``E.O. 12957''), under the authority of, inter alia, the
International Emergency Economic Powers Act (50 U.S.C. 1701-1706)
(``IEEPA'') and the National Emergencies Act (50 U.S.C. 1601 et seq.)
(``NEA''), the President declared a national emergency with respect to
the actions and policies of the Government of Iran, including its
support for international terrorism, its efforts to undermine the
Middle East peace process, and its efforts to acquire weapons of mass
destruction and the means to deliver them. To deal with that threat,
E.O. 12957 imposed prohibitions on certain transactions with respect to
the development of Iranian petroleum resources. On May 6, 1995, to
further respond to this threat, the President issued Executive Order
12959, which imposed comprehensive trade and financial sanctions on
Iran, but did not include blocking sanctions. Finally, on August 19,
1997, the President issued Executive Order 13059 consolidating and
clarifying the previous orders.
On December 31, 2011, the President signed into law the National
Defense Authorization Act for Fiscal Year 2012 (Pub. L. 112-81) (the
``NDAA''). Section 1245 of the NDAA, among other things, provides for
the imposition of sanctions on the Central Bank of Iran and other
Iranian financial institutions. Specifically, section 1245(c) provides
that the President shall, pursuant to IEEPA, block and prohibit all
transactions in all property and interests in property of an Iranian
financial institution if such property and interests in property are in
the United States, come within the United States, or are or come within
the possession or control of a United States person. In addition,
section 1245(d)(1)(B) of the NDAA authorizes the President to impose
sanctions pursuant to IEEPA with respect to the Central Bank of Iran.
Finally, section 1245(g) of the NDAA provides that the President may
exercise all authorities under sections 203 and 205 of IEEPA and may
impose the penalties provided in section 206(b) and (c) of IEEPA to
implement and enforce section 1245 of the NDAA.
On February 5, 2012, the President, invoking the authority of,
inter alia, IEEPA and section 1245 of the NDAA, issued Executive Order
13599 (``Blocking Property of the Government of Iran and Iranian
Financial Institutions'') (``E.O. 13599''). The President issued E.O.
13599 in order to take additional steps with respect to the national
emergency declared in E.O. 12957 with respect to Iran, particularly in
light of the deceptive practices of the Central Bank of Iran and other
Iranian banks to conceal transactions of sanctioned parties, the
deficiencies in Iran's anti-money laundering regime and the weaknesses
in its implementation, and the continuing and unacceptable risk posed
to the international financial system by Iran's activities.
Section 1 of E.O. 13599 generally blocks 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 (1)
the Government of Iran, including the Central Bank of Iran, (2) any
Iranian financial institution, including the Central Bank of Iran, and
(3) any person determined by the Secretary of the Treasury, in
consultation with the Secretary of State, to be owned or controlled by,
or to have acted or purported to act for or on behalf of, directly or
indirectly, any person whose property and interests in property are
blocked pursuant to E.O. 13599. The property and interests in property
of the Government of Iran, any Iranian financial institution, and any
other person described above may not be transferred, paid, exported,
withdrawn, or otherwise dealt in.
In section 2 of E.O. 13599, the President determined that the
making of donations of certain articles, such as food, clothing, and
medicine, intended to be used to relieve human suffering, as specified
in section 203(b)(2) of IEEPA (50 U.S.C. 1702(b)(2)), by, to, or for
the benefit of any person whose property and interests in property are
blocked pursuant to section 1 of the order would seriously impair his
ability to deal with the national emergency declared in E.O. 12957. The
President therefore prohibited the donation of such items as provided
by section 1 of E.O. 13599.
Section 3 of E.O. 13599 provides that the prohibitions in section 1
of the order include, but are not limited to, the making of any
contribution or provision of funds, goods, or services by, to, or for
the benefit of any person whose
[[Page 64665]]
property and interests in property are blocked pursuant to the order,
and the receipt of any contribution or provision of funds, goods, or
services from any such person.
Section 4(b) of E.O. 13599 provides that the prohibitions in
section 1 of the order do not apply to property and interests in
property of the Government of Iran that were blocked pursuant to
Executive Order 12170 of November 14, 1979 (the Executive order issued
in response to the takeover of the U.S. Embassy in Tehran and the
taking hostage of U.S. diplomats and other persons on November 4,
1979), and thereafter made subject to the transfer directives set forth
in Executive Order 12281 of January 19, 1981 (one of the Executive
orders that implemented the Algiers Accords of the same date), and
implementing regulations thereunder (i.e., the Iranian Assets Control
Regulations, 31 CFR part 535).
Section 5 of E.O. 13599 prohibits any transaction that evades or
avoids, has the purpose of evading or avoiding, causes a violation of,
or attempts to violate any of the prohibitions set forth in the order,
as well as any conspiracy formed to violate such prohibitions.
Section 6 of E.O. 13599 provides that nothing in section 1 shall
prohibit transactions for the conduct of the official business of the
Federal Government by employees, grantees, or contractors thereof.
Section 9 of E.O. 13599 authorizes the Secretary of the Treasury,
in consultation with the Secretary of State, to take such actions,
including the promulgation of rules and regulations, and to employ all
powers granted to the President by IEEPA as may be necessary to carry
out the purposes of E.O. 13599, other than the purposes described in
section 11 (which are delegated to the Secretary of State). The
Secretary of the Treasury may redelegate any of these functions and
authorities to other officers and agencies of the United States
Government consistent with applicable law.
Acting under authority delegated by the Secretary of the Treasury
pursuant to section 9 of E.O. 13599, OFAC is changing the heading of
the Iranian Transactions Regulations, 31 CFR part 560 (the ``ITR''), to
the Iranian Transactions and Sanctions Regulations, 31 CFR part 560
(the ``ITSR''), and amending the renamed ITSR to implement E.O. 13599
(other than section 11) and sections 1245(c) and (d)(1)(B) of the NDAA.
To implement the blocking prohibitions of E.O. 13599 and the NDAA, OFAC
is adding numerous new sections to the ITSR, including prohibitions,
definitions, interpretations, and licensing provisions. OFAC also is
revising many existing sections of the ITSR in order to take account of
the new government-wide blocking as well as the blocking of all Iranian
financial institutions. Due to the extensive nature of these
amendments, OFAC is reissuing the ITSR in their entirety.
In addition to the changes needed to implement a blocking program,
OFAC is adding to the ITSR several new general licenses, incorporating
into the ITSR a general license and a statement of licensing policy
that, until now, have appeared only on OFAC's Web site on the Iran
sanctions page, and removing several general licenses and statements of
licensing policy that previously were part of the Iranian Transactions
Regulations. Finally, OFAC is updating certain provisions of the ITSR
and making other technical and conforming changes.
Accordingly, new section 560.211 is being added to subpart B of the
ITSR to implement the blocking prohibitions in section 1 of E.O. 13599.
New sections 560.212 through 560.214 are being added to subpart B to
set forth certain consequences and requirements that stem from the
blocking prohibitions, including, inter alia, the requirement to hold
blocked funds in interest-bearing accounts. New paragraphs (e) and (f)
are being added to section 560.210 to incorporate two exemptions from
the blocking prohibitions that are set forth, respectively, in sections
6 and 4(b) of E.O. 13599. What had been paragraph (e) of section
560.210 of the ITR has been removed as out-of-date.
In subpart C, which defines key terms used throughout the ITSR, new
sections 560.322 through 560.327 are being added to define key terms
used in the new blocking prohibitions or elsewhere in the regulations.
Also, certain existing definitions in subpart C are being revised to
take account of new provisions, to provide greater clarity with respect
to the terms being used, and to update certain definitions.
For the same reasons, in subpart D, which contains interpretive
sections regarding the ITSR, new sections 560.421 through 560.428 are
being added and changes are being made to certain existing sections.
Among these changes, an important change is being made to section
560.405, which provides that transactions ordinarily incident to a
licensed transaction and necessary to give effect to it are also
authorized, with certain exceptions. A new exception for payments or
transfers of funds is being added in paragraph (b) of section 560.405.
Thus, payments or transfers of funds no longer are considered
ordinarily incident to a licensed transaction and instead must be
authorized by a general or specific license. A new note to paragraph
(b) of section 560.405 refers to section 560.516 for a general license
authorizing United States depository institutions or United States
registered brokers or dealers in securities to process transfers of
funds if the transfer arises from, and is ordinarily incident and
necessary to give effect to, an underlying transaction authorized by a
specific or general license issued pursuant to, or set forth in, this
part. (A final change to section 560.405 that deals with sales of
agricultural commodities, medicine, and medical devices is discussed
below.)
Subpart E of the ITSR contains (1) general licenses that authorize
transactions otherwise prohibited under the ITSR but found to be
consistent with U.S. policy, and (2) statements of licensing policy
that describe transactions that may be authorized by specific license
issued pursuant to the procedures described in subpart E of 31 CFR part
501. Subpart E of the ITSR is being extensively revised, and certain
sections also are being renumbered. New general licenses are being
added in sections 560.519, 560.543, 560.544, 560.546 through 560.548,
and 560.551 through 560.554. New sections 560.545 and 560.550
incorporate into the ITSR, respectively, a statement of licensing
policy and a general license that, until now, have been posted only on
OFAC's Web site; new section 560.550 also reflects significant changes
to the general license. Section 560.549 contains a statement of
licensing policy for Iranian news organizations' offices in the United
States that previously was found in section 560.519, which is now a
general license authorizing specified journalistic activities and the
establishment of news bureaus in Iran, subject to certain limitations.
Moreover, revisions are being made to several pre-existing
authorizations, including those in sections 560.505, 560.508, 560.516,
560.517 and 560.530. Furthermore, certain general licenses and
statements of licensing policy that previously appeared in the ITR are
being removed and hence not added to the ITSR, either because they are
out-of-date (e.g., ITR sections 560.513, 560.515, 560.520, 560.536,
560.537) or because they are no longer consistent with U.S. policy
(e.g., ITR sections 560.511 and 560.526).
In addition, OFAC is revising the sections of the ITSR dealing with
authorized sales of agricultural commodities, medicine, and medical
devices to Iran pursuant to the Trade Sanctions Reform and Export
[[Page 64666]]
Enhancement Act of 2000, as amended (22 U.S.C. 7201 et seq.)
(``TSRA''). First, OFAC is amending section 560.530 to add a general
license, in new paragraph (a)(3), authorizing the exportation or
reexportation of medicine and basic medical supplies to Iran. The term
medicine already is defined in paragraph (e)(2) of section 560.530. The
term basic medical supplies is newly defined in paragraph (a)(3)(ii) to
mean those medical devices, as defined in paragraph (e)(3) of section
560.530, that are included on the List of Basic Medical Supplies on the
Office of Foreign Assets Control's Web site (www.treasury.gov/ofac) on
the Iran Sanctions page, but not including replacement parts. The List
of Basic Medical Supplies generally will contain medical devices
(excluding replacement parts) for which OFAC previously did not require
an Official Commodity Classification of EAR99 issued by the Department
of Commerce's Bureau of Industry and Security to be submitted with a
specific license application and which are now generally licensed.
Certain classes of medicine are excluded from the scope of this general
license by new paragraph (a)(3)(iii) of section 560.530. Exports of
medicine and basic medical supplies to military or law enforcement
purchasers or importers are excluded from the scope of this general
license by new paragraph (a)(3)(iv) of section 560.530.
Second, OFAC is amending sections 560.530 and 560.532, as well as
interpretive section 560.405 in subpart D of the ITSR, to clarify the
rules for financing of TSRA sales. New paragraph (a)(3)(i) of section
560.530 provides that payment terms and financing for sales pursuant to
the new general license for medicine and basic medical supplies must be
limited to, and consistent with, those authorized by section 560.532.
Paragraph (a)(2)(i) of section 560.530 is being amended to add the same
requirement to the existing general license for exports of food.
OFAC is revising section 560.532 to provide that the general
license for payment terms in that section applies to all sales pursuant
to section 560.530(a), whether authorized by general or specific
license. OFAC also is revising paragraph (e) of section 560.405 to
clarify that financing of all TSRA sales authorized pursuant to section
560.530(a) is excepted from the authorization in section 560.405 for
transactions ordinarily incident to a licensed transaction. Sections
560.530 and 560.532, which authorize the conduct of related
transactions, including payment terms and financing, for the TSRA sales
described above, govern instead.
Third, a new authorized payment term for all TSRA sales is being
added in section 560.532. New paragraph (a)(4) of section 560.532
specifies that the new payment term is a letter of credit issued by an
Iranian financial institution whose property and interests in property
are blocked solely pursuant to 31 CFR part 560. Such a letter of credit
must be initially advised, confirmed or otherwise dealt in by a third-
country financial institution that is not a United States person, an
Iranian financial institution, or the Government of Iran before it is
advised, confirmed or dealt in by a U.S. financial institution.
Fourth, OFAC is amending the rules for TSRA sales by revising
section 560.530(f), to clarify that the term medicine does not include
cosmetics, and making other technical and conforming changes to
sections 560.530, 560.532, and 560.533.
Finally, OFAC is removing both Appendix A to Part 560, which listed
persons determined to be the Government of Iran (as defined in section
560.304) and Appendix C to Part 560. The persons that were listed in
Appendix A to Part 560 are listed on OFAC's List of Specially
Designated Nationals and Blocked Persons, and their property and
interests in property are blocked pursuant to E.O. 13599 and section
560.211 of the ITSR; maintaining a separate Appendix A to Part 560,
therefore, no longer serves any useful purpose. Appendix C to Part 560
set forth eligible procurement bodies of the Government of Iran for
purposes of a statement of licensing policy that was removed from the
ITSR when TSRA was first implemented. It too no longer serves any
purpose.
This final rule, in addition to renaming, amending, and reissuing
the ITR as the ITSR, also makes a conforming amendment to Appendix A to
31 CFR chapter V.
Public Participation
Because the ITSR 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 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
Administrative practice and procedure, Banks, Banking, Brokers,
Foreign Trade, Investments, Loans, Securities, Iran.
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:
0
1. Revise 31 CFR part 560 to read as follows:
PART 560--IRANIAN TRANSACTIONS AND SANCTIONS REGULATIONS
Subpart A--Relation of This Part to Other Laws and Regulations
Sec.
560.101 Relation of this part to other laws and regulations.
Subpart B--Prohibitions
560.201 Prohibited importation of goods or services from Iran.
560.202 [Reserved]
560.203 Evasions; attempts; causing violations; conspiracies.
560.204 Prohibited exportation, reexportation, sale or supply of
goods, technology, or services to Iran.
560.205 Prohibited reexportation of goods, technology or services to
Iran or the Government of Iran by persons other than United States
persons; exceptions.
560.206 Prohibited trade-related transactions with Iran; goods,
technology, or services.
560.207 Prohibited investment.
560.208 Prohibited facilitation by United States persons of
transactions by foreign persons.
560.209 Prohibited transactions with respect to the development of
Iranian petroleum resources.
560.210 Exempt transactions.
560.211 Prohibited transactions involving blocked property.
560.212 Effect of transfers violating the provisions of this part.
560.213 Holding of funds in interest-bearing accounts; investment
and reinvestment.
560.214 Expenses of maintaining blocked physical property;
liquidation of blocked property.
Subpart C--General Definitions
560.301 Effective date.
560.302 [Reserved]
560.303 Iran; Iranian.
[[Page 64667]]
560.304 Government of Iran.
560.305 Person; entity.
560.306 Iranian-origin goods or services; goods or services owned or
controlled by the Government of Iran.
560.307 United States.
560.308 Importation of goods.
560.309 [Reserved]
560.310 License.
560.311 General license.
560.312 Specific license.
560.313 Entity owned or controlled by the Government of Iran.
560.314 United States person; U.S. person.
560.315 Information or informational materials.
560.316 New investment.
560.317 Credits or loans.
560.318 [Reserved]
560.319 United States depository institution.
560.320 Iranian accounts.
560.321 United States registered broker or dealer in securities.
560.322 Blocked account; blocked property.
560.323 Interest.
560.324 Iranian financial institution.
560.325 Property; property interest.
560.326 Transfer.
560.327 U.S. financial institution.
Subpart D--Interpretations
560.401 Reference to amended sections.
560.402 Effect of amendment.
560.403 Transshipment or transit through Iran.
560.404 [Reserved]
560.405 Transactions ordinarily incident to a licensed transaction
authorized.
560.406 Transshipment or transit through the United States.
560.407 Transactions related to Iranian-origin goods.
560.408 Importation into and release from a bonded warehouse or
foreign trade zone.
560.409 [Reserved]
560.410 Provision of services.
560.411 [Reserved]
560.412 Extensions of credit or loans to Iran.
560.413 [Reserved]
560.414 Reexportation of certain U.S.-origin goods exported prior to
May 7, 1995.
560.415 [Reserved]
560.416 Brokering services.
560.417 Facilitation; change of policies and procedures; referral of
business opportunities offshore.
560.418 Release of technology or software in the United States or a
third country.
560.419 U.S. employment of persons ordinarily resident in Iran.
560.420 Reexportation by non-U.S. persons of certain foreign-made
products containing U.S.-origin goods or technology.
560.421 Setoffs prohibited.
560.422 Termination and acquisition of an interest in blocked
property.
560.423 Offshore transactions involving blocked property.
560.424 Payments from blocked accounts to satisfy obligations
prohibited.
560.425 Entities owned by a person whose property and interests in
property are blocked.
560.426 Charitable contributions.
560.427 Exportation, reexportation, sale or supply of financial
services to Iran or the Government of Iran.
560.428 Credit extended and cards issued by U.S. financial
institutions.
Subpart E--Licenses, Authorizations, and Statements of Licensing Policy
560.501 General and specific licensing procedures.
560.502 Effect of license or authorization.
560.503 Exclusion from licenses and authorizations.
560.504 [Reserved]
560.505 Activities and services related to certain nonimmigrant and
immigrant categories authorized.
560.506 Importation and exportation of certain gifts authorized.
560.507 [Reserved]
560.508 Telecommunications and mail transactions authorized.
560.509 Certain transactions related to patents, trademarks, and
copyrights authorized.
560.510 Transactions related to the resolution of disputes between
the United States or United States nationals and the Government of
Iran.
560.511 [Reserved]
560.512 Iranian Government missions in the United States.
560.513-560.515 [Reserved]
560.516 Transfers of funds involving Iran.
560.517 Exportation of services: Iranian accounts at United States
depository institutions or United States registered brokers or
dealers in securities.
560.518 Transactions in Iranian-origin and Iranian Government
property.
560.519 Journalistic activities and establishment of news bureaus in
Iran.
560.520 [Reserved]
560.521 Diplomatic pouches.
560.522 Allowable payments for overflights of Iranian airspace.
560.523 Exportation of equipment and services relating to
information and informational materials.
560.524 Household goods and personal effects.
560.525 Provision of certain legal services.
560.526 [Reserved]
560.527 Rescheduling existing loans.
560.528 Aircraft safety.
560.529 Bunkering and emergency repairs.
560.530 Commercial sales, exportation, and reexportation of
agricultural commodities, medicine, and medical devices.
560.531 [Reserved]
560.532 Payment for and financing of exports and reexports of
agricultural commodities, medicine, and medical devices.
560.533 Brokering sales of agricultural commodities, medicine, and
medical devices.
560.534-560.537 [Reserved]
560.538 Authorized transactions necessary and ordinarily incident to
publishing.
560.539 Official activities of certain international organizations.
560.540 Exportation of certain services and software incident to
Internet-based communications.
560.541 Third-country diplomatic and consular funds transfers.
560.542 Importation or exportation of human remains for burial,
cremation, or interment authorized.
560.543 Sale of certain real property in Iran and transfer of
related funds to the United States.
560.544 Certain educational activities by U.S. persons in third
countries authorized.
560.545 Democracy and human rights in Iran and academic and cultural
exchange programs.
560.546 Payments and transfers to blocked accounts in U.S. financial
institutions.
560.547 Entries in certain accounts for normal service charges
authorized.
560.548 Investment and reinvestment of certain funds.
560.549 Policy governing Iranian news organizations' offices in the
United States.
560.550 Certain noncommercial, personal remittances to or from Iran
authorized.
560.551 Student loan payments from persons in Iran authorized.
560.552 Transactions related to U.S. citizens residing in Iran.
560.553 Payments from funds originating outside the United States
authorized.
560.554 Importation and exportation of services related to
conferences in the United States or third countries authorized.
Subpart F--Reports
560.601 Records and reports.
560.602-560.603 [Reserved]
Subpart G--Penalties
560.701 Penalties.
560.702 Detention of shipments.
560.703 Pre-Penalty Notice; settlement.
560.704 Penalty imposition.
560.705 Administrative collection; referral to United States
Department of Justice.
Subpart H--Procedures
560.801 Procedures.
560.802 Delegation by the Secretary of the Treasury.
560.803 [Reserved]
Subpart I--Paperwork Reduction Act
560.901 Paperwork Reduction Act notice.
Appendix A to Part 560 [Reserved]
Appendix B to Part 560--Bulk Agricultural Commodities
Appendix C to Part 560 [Reserved]
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); Pub. L. 112-81, 125
Stat. 1298; 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
[[Page 64668]]
6659, February 8, 2012; E.O. 13628, 77 FR 62139, October 12, 2012.
Subpart A--Relation of This Part to Other Laws and Regulations
Sec. 560.101 Relation of this part to other laws and regulations.
This part is separate from, and independent of, the other parts of
this chapter, including part 535 of this chapter, ``Iranian Assets
Control Regulations,'' part 561 of this chapter, ``Iranian Financial
Sanctions Regulations,'' and part 562 of this chapter, ``Iranian Human
Rights Abuses Sanctions Regulations,'' with the exception of part 501
of this chapter, the recordkeeping and reporting requirements and
license application and other procedures of which apply to this part.
Actions taken pursuant to part 501 of this chapter with respect to the
prohibitions contained in this part are considered actions taken
pursuant to this part. Differing foreign policy and national security
circumstances may result in differing interpretations of similar
language among the parts of this chapter. No license or authorization
contained in or issued pursuant to those other parts authorizes any
transaction prohibited by this part. No license or authorization
contained in or issued pursuant to any other provision of law or
regulation authorizes any transaction prohibited by this part. No
license or authorization contained in or issued pursuant to this part
relieves the involved parties from complying with any other applicable
laws or regulations.
Subpart B--Prohibitions
Sec. 560.201 Prohibited importation of goods or services from Iran.
Except as otherwise authorized pursuant to this part, and
notwithstanding any contract entered into or any license or permit
granted prior to May 7, 1995, the importation into the United States of
any goods or services of Iranian origin or owned or controlled by the
Government of Iran, other than information and informational materials
within the meaning of section 203(b)(3) of the International Emergency
Economic Powers Act (50 U.S.C. 1702(b)(3)), is prohibited.
Sec. 560.202 [Reserved]
Sec. 560.203 Evasions; attempts; causing violations; conspiracies.
(a) Any transaction on or after the effective date that evades or
avoids, has the purpose of evading or avoiding, causes a violation of,
or attempts to violate any of the prohibitions set forth in this part
is prohibited.
(b) Any conspiracy formed to violate any of the prohibitions set
forth in this part is prohibited.
Sec. 560.204 Prohibited exportation, reexportation, sale, or supply
of goods, technology, or services to Iran.
Except as otherwise authorized pursuant to this part, and
notwithstanding any contract entered into or any license or permit
granted prior to May 7, 1995, the exportation, reexportation, sale, or
supply, directly or indirectly, from the United States, or by a United
States person, wherever located, of any goods, technology, or services
to Iran or the Government of Iran is prohibited, including the
exportation, reexportation, sale, or supply of any goods, technology,
or services to a person in a third country undertaken with knowledge or
reason to know that:
(a) Such goods, technology, or services are intended specifically
for supply, transshipment, or reexportation, directly or indirectly, to
Iran or the Government of Iran; or
(b) Such goods, technology, or services are intended specifically
for use in the production of, for commingling with, or for
incorporation into goods, technology, or services to be directly or
indirectly supplied, transshipped, or reexported exclusively or
predominantly to Iran or the Government of Iran.
Sec. 560.205 Prohibited reexportation of goods, technology, or
services to Iran or the Government of Iran by persons other than United
States persons; exceptions.
(a) Except as otherwise authorized pursuant to this part, and
notwithstanding any contract entered into or any license or permit
granted prior to May 7, 1995, the reexportation from a third country,
directly or indirectly, by a person other than a United States person,
of any goods, technology, or services that have been exported from the
United States is prohibited, if:
(1) Undertaken with knowledge or reason to know that the
reexportation is intended specifically for Iran or the Government of
Iran; and
(2) The exportation of such goods, technology, or services from the
United States to Iran was subject to export license application
requirements under any United States regulations in effect on May 6,
1995, or thereafter is made subject to such requirements imposed
independently of this part (see Sec. 560.414).
(b) The prohibitions of paragraph (a) of this section shall not
apply to those goods or that technology subject to export license
application requirements if such goods or technology have been:
(1) Substantially transformed into a foreign-made product outside
the United States; or
(2) Incorporated into a foreign-made product outside the United
States if the aggregate value of such goods and technology described in
paragraph (a)(2) of this section constitutes less than 10 percent of
the total value of the foreign-made product to be exported from a third
country (see Sec. 560.420).
Note to Sec. 560.205(b): The reexportation of U.S.-origin
goods or technology, including U.S.-origin goods or technology that
have been incorporated or substantially transformed into a foreign-
made product, not prohibited by this section, may require
authorization by the U.S. Department of Commerce under the Export
Administration Regulations (15 CFR parts 730-774) or by the U.S.
State Department under the International Traffic in Arms Regulations
(22 CFR 123.9).
(c) Reexportation by United States persons or from the United
States is governed by other sections in this part, including Sec. Sec.
560.204 and 560.206.
Sec. 560.206 Prohibited trade-related transactions with Iran; goods,
technology, or services.
(a) Except as otherwise authorized pursuant to this part, and
notwithstanding any contract entered into or any license or permit
granted prior to May 7, 1995, no United States person, wherever
located, may engage in any transaction or dealing in or related to:
(1) Goods or services of Iranian origin or owned or controlled by
the Government of Iran; or
(2) Goods, technology, or services for exportation, reexportation,
sale or supply, directly or indirectly, to Iran or the Government of
Iran.
(b) For purposes of paragraph (a) of this section, the term
transaction or dealing includes but is not limited to purchasing,
selling, transporting, swapping, brokering, approving, financing,
facilitating, or guaranteeing.
Sec. 560.207 Prohibited investment.
Except as otherwise authorized pursuant to this part, and
notwithstanding any contract entered into or any license or permit
granted prior to May 7, 1995, any new investment by a United States
person in Iran or in property (including entities) owned or controlled
by the Government of Iran is prohibited.
Sec. 560.208 Prohibited facilitation by United States persons of
transactions by foreign persons.
Except as otherwise authorized pursuant to this part, and
[[Page 64669]]
notwithstanding any contract entered into or any license or permit
granted prior to May 7, 1995, no United States person, wherever
located, may approve, finance, facilitate, or guarantee any transaction
by a foreign person where the transaction by that foreign person would
be prohibited by this part if performed by a United States person or
within the United States.
Sec. 560.209 Prohibited transactions with respect to the development
of Iranian petroleum resources.
Except as otherwise authorized, and notwithstanding any contract
entered into or any license or permit granted prior to March 16, 1995,
the following are prohibited:
(a) The entry into or performance by a United States person, or the
approval by a United States person of the entry into or performance by
an entity owned or controlled by a United States person, of:
(1) A contract that includes overall supervision and management
responsibility for the development of petroleum resources located in
Iran, or
(2) A guaranty of another person's performance under such contract;
or
(b) The entry into or performance by a United States person, or the
approval by a United States person of the entry into or performance by
an entity owned or controlled by a United States person, of:
(1) A contract for the financing of the development of petroleum
resources located in Iran, or
(2) A guaranty of another person's performance under such a
contract.
Sec. 560.210 Exempt transactions.
(a) Personal communications. The prohibitions contained in this
part do not apply to any postal, telegraphic, telephonic, or other
personal communication that does not involve the transfer of anything
of value.
(b) Humanitarian donations. The prohibitions of Sec. Sec. 560.204
and 560.206 do not apply to donations by United States persons of
articles, such as food, clothing, and medicine, intended to be used to
relieve human suffering.
(c) Information or informational materials. (1) The prohibitions
contained in this part do not apply to the importation from any country
and the exportation to any country of information or informational
materials, as defined in Sec. 560.315, whether commercial or
otherwise, regardless of format or medium of transmission.
(2) This section does not exempt from regulation or authorize
transactions related to information or informational materials not
fully created and in existence at the date of the transactions, or to
the substantive or artistic alteration or enhancement of informational
materials, or to the provision of marketing and business consulting
services. Such prohibited transactions include, but are not limited to,
payment of advances for information or informational materials not yet
created and completed (with the exception of prepaid subscriptions for
widely circulated magazines and other periodical publications);
provision of services to market, produce or co-produce, create, or
assist in the creation of information or informational materials; and
payment of royalties with respect to income received for enhancements
or alterations made by U.S. persons to such information or
informational materials.
(3) This section does not exempt or authorize transactions incident
to the exportation of software subject to the Export Administration
Regulations, 15 CFR parts 730 through 774, or to the exportation of
goods (including software) or technology for use in the transmission of
any data, or to the provision, sale, or leasing of capacity on
telecommunications transmission facilities (such as satellite or
terrestrial network connectivity) for use in the transmission of any
data. The exportation of such items or services and the provision,
sale, or leasing of such capacity or facilities 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 are prohibited.
Note to paragraph (c)(3) of Sec. 560.210: See Sec. 560.540 of
this part for a general license authorizing the exportation to
persons in Iran of certain services and software incident to the
exchange of personal communications over the Internet.
(d) Travel. The prohibitions contained in this part do not apply to
transactions ordinarily incident to travel to or from any country,
including importation or exportation of accompanied baggage for
personal use, maintenance within any country including payment of
living expenses and acquisition of goods or services for personal use,
and arrangement or facilitation of such travel including nonscheduled
air, sea, or land voyages.
(e) Official Business. The prohibitions in Sec. 560.211 do not
apply to transactions for the conduct of the official business of the
Federal Government by employees, grantees, or contractors thereof.
(f) The prohibitions in Sec. 560.211 do not apply to property and
interests in property of the Government of Iran that were blocked
pursuant to Executive Order 12170 of November 14, 1979, and thereafter
made subject to the transfer directives set forth in Executive Order
12281 of January 19, 1981, and implementing regulations thereunder.
Sec. 560.211 Prohibited transactions involving blocked property.
(a) All property and interests in property of the Government of
Iran, including the Central Bank of Iran, 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 United States
person, including any foreign branch, are blocked and may not be
transferred, paid, exported, withdrawn, or otherwise dealt in.
(b) All property and interests in property of any Iranian financial
institution, including the Central Bank of Iran, 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 United States
person, including any foreign branch, are blocked and may not be
transferred, paid, exported, withdrawn, or otherwise dealt in.
(c) 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 United States
person, including any foreign branch, of the following persons are
blocked and may not be transferred, paid, exported, withdrawn, or
otherwise dealt in: any person determined by the Secretary of the
Treasury, in consultation with the Secretary of State, to be owned or
controlled by, or to have acted or purported to act for or on behalf
of, directly or indirectly, any person whose property and interests in
property are blocked pursuant to paragraphs (a) through (c) of this
section.
Note 1 to paragraphs (a) through (c) of Sec. 560.211: The names
of persons identified as already blocked or designated for blocking
pursuant to Executive Order 13599 of February 5, 2012, whose
property and interests in property therefore are blocked pursuant to
this section, are published in the Federal Register and incorporated
into the Office of Foreign Assets Control's Specially Designated
Nationals and Blocked Persons List (``SDN List'') with the
identifier ``[IRAN].'' The SDN List is accessible through the
following page on the Office of Foreign Control's Web site:
www.treasury.gov/sdn. Additional information pertaining to 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 SDN List but whose
property and interests in property are
[[Page 64670]]
nevertheless blocked pursuant to this section. Executive Order 13599
blocks the property and interests in property of the Government of
Iran and Iranian financial institutions, as defined in Sec. 560.304
and Sec. 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 SDN List.
Note 2 to paragraph (a) through (c) of Sec. 560.211: The
International Emergency Economic Powers Act (50 U.S.C. 1701-1706)
(``IEEPA''), 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 SDN List with the identifier ``[BPI-
IRAN].''
Note 3 to paragraph (a) through (c) of Sec. 560.211: Sections
501.806 and 501.807 of this chapter describe the procedures to be
followed by persons seeking, respectively, the unblocking of funds
that they believe were blocked due to mistaken identity, or
administrative reconsideration of their status as the Government of
Iran, an Iranian financial institution, or any other person whose
property and interests in property are blocked pursuant to this
section.
(d) The prohibitions in paragraphs (a) through (c) of this section
include, but are not limited to, prohibitions on the following
transactions:
(1) The making of any contribution or provision of funds, goods, or
services by, to, or for the benefit of any person whose property and
interests in property are blocked pursuant to paragraphs (a) through
(c) of this section; and
(2) The receipt of any contribution or provision of funds, goods,
or services from any person whose property and interests in property
are blocked pursuant to paragraphs (a) through (c) of this section.
(e) Unless authorized by this part or by a specific license
expressly referring to this section, any dealing in any security (or
evidence thereof) held within the possession or control of a U.S.
person and either registered or inscribed in the name of, or known to
be held for the benefit of, or issued by, the Government of Iran, an
Iranian financial institution, or any other person whose property and
interests in property are blocked pursuant to this section is
prohibited. This prohibition includes but is not limited to the
transfer (including the transfer on the books of any issuer or agent
thereof), disposition, transportation, importation, exportation, or
withdrawal of, or the endorsement or guaranty of signatures on, any
such security on or after the effective date. This prohibition applies
irrespective of the fact that at any time (whether prior to, on, or
subsequent to the effective date) the registered or inscribed owner of
any such security may have or might appear to have assigned,
transferred, or otherwise disposed of the security.
(f) The prohibitions in paragraphs (a) through (c) of this section
apply except to the extent transactions are authorized by regulations,
orders, directives, rulings, instructions, licenses, or otherwise, and
notwithstanding any contracts entered into or any license or permit
granted prior to the effective date.
Sec. 560.212 Effect of transfers violating the provisions of this
part.
(a) Any transfer after the effective date that is in violation of
any provision of this part or of any regulation, order, directive,
ruling, instruction, or license issued pursuant to this part, and that
involves any property or interest in property blocked pursuant to Sec.
560.211, is null and void and shall not be the basis for the assertion
or recognition of any interest in or right, remedy, power, or privilege
with respect to such property or property interests.
(b) No transfer before the effective date shall be the basis for
the assertion or recognition of any right, remedy, power, or privilege
with respect to, or any interest in, any property or interest in
property blocked pursuant to Sec. 560.211, unless the person who holds
or maintains such property, prior to that date, had written notice of
the transfer or by any written evidence had recognized such transfer.
(c) Unless otherwise provided, a license or other authorization
issued by the Office of Foreign Assets Control before, during, or after
a transfer shall validate such transfer or make it enforceable to the
same extent that it would be valid or enforceable but for the
provisions of this part and any regulation, order, directive, ruling,
instruction, or license issued pursuant to this part.
(d) Transfers of property that otherwise would be null and void or
unenforceable by virtue of the provisions of this section shall not be
deemed to be null and void or unenforceable as to any person with whom
such property is or was held or maintained (and as to such person only)
in cases in which such person is able to establish to the satisfaction
of the Office of Foreign Assets Control each of the following:
(1) Such transfer did not represent a willful violation of the
provisions of this part by the person with whom such property is or was
held or maintained (and as to such person only);
(2) The person with whom such property is or was held or maintained
did not have reasonable cause to know or suspect, in view of all the
facts and circumstances known or available to such person, that such
transfer required a license or authorization issued pursuant to this
part and was not so licensed or authorized, or, if a license or
authorization did purport to cover the transfer, that such license or
authorization had been obtained by misrepresentation of a third party
or withholding of material facts or was otherwise fraudulently
obtained; and
(3) The person with whom such property is or was held or maintained
filed with the Office of Foreign Assets Control a report setting forth
in full the circumstances relating to such transfer promptly upon
discovery that:
(i) Such transfer was in violation of the provisions of this part
or any regulation, ruling, instruction, license, or other directive or
authorization issued pursuant to this part;
(ii) Such transfer was not licensed or authorized by the Office of
Foreign Assets Control; or
(iii) If a license did purport to cover the transfer, such license
had been obtained by misrepresentation of a third party or withholding
of material facts or was otherwise fraudulently obtained.
Note to paragraph (d) of Sec. 560.212: The filing of a report
in accordance with the provisions of paragraph (d)(3) of this
section shall not be deemed evidence that the terms of paragraphs
(d)(1) and (d)(2) of this section have been satisfied.
(e) Unless licensed pursuant to this part, any attachment,
judgment, decree, lien, execution, garnishment, or other judicial
process is null and void with respect to any property and interests in
property blocked pursuant to Sec. 560.211.
Sec. 560.213 Holding of funds in interest-bearing accounts;
investment and reinvestment.
(a) Except as provided in paragraphs (e) or (f) of this section, or
as otherwise directed by the Office of Foreign Assets Control, any U.S.
person holding funds, such as currency, bank deposits, or liquidated
financial obligations, subject to Sec. 560.211 shall hold or place
such funds in a blocked interest-bearing account located in the United
States.
(b)(1) For purposes of this section, the term blocked interest-
bearing account means a blocked account:
[[Page 64671]]
(i) In a Federally-insured U.S. bank, thrift institution, or credit
union, provided the funds are earning interest at rates that are
commercially reasonable; or
(ii) With a broker or dealer registered with the Securities and
Exchange Commission under the Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.), provided the funds are invested in a money market
fund or in U.S. Treasury bills.
(2) Funds held or placed in a blocked account pursuant to paragraph
(a) of this section may not be invested in instruments the maturity of
which exceeds 180 days.
(c) For purposes of this section, a rate is commercially reasonable
if it is the rate currently offered to other depositors on deposits or
instruments of comparable size and maturity.
(d) For purposes of this section, if interest is credited to a
separate blocked account or subaccount, the name of the account party
on each account must be the same.
(e) Blocked funds held in instruments the maturity of which exceeds
180 days at the time the funds become subject to Sec. 560.211 may
continue to be held until maturity in the original instrument, provided
any interest, earnings, or other proceeds derived therefrom are paid
into a blocked interest-bearing account in accordance with paragraphs
(a) or (f) of this section.
(f) Blocked funds held in accounts or instruments outside the
United States at the time the funds become subject to Sec. 560.211 may
continue to be held in the same type of accounts or instruments,
provided the funds earn interest at rates that are commercially
reasonable.
(g) This section does not create an affirmative obligation for the
holder of blocked tangible property, such as chattels or real estate,
or of other blocked property, such as debt or equity securities, to
sell or liquidate such property. However, the Office of Foreign Assets
Control may issue licenses permitting or directing such sales or
liquidation in appropriate cases.
(h) Funds subject to this section may not be held, invested, or
reinvested in a manner that provides immediate financial or economic
benefit or access to any person whose property and interests in
property are blocked pursuant to Sec. 560.211, nor may their holder
cooperate in or facilitate the pledging or other attempted use as
collateral of blocked funds or other assets.
Sec. 560.214 Expenses of maintaining blocked physical property;
liquidation of blocked property.
(a) Except as otherwise authorized, and notwithstanding the
existence of any rights or obligations conferred or imposed by any
international agreement or contract entered into or any license or
permit granted prior to the effective date, all expenses incident to
the maintenance of physical property blocked pursuant to Sec. 560.211
shall be the responsibility of the owners or operators of such
property, which expenses shall not be met from blocked funds.
(b) Property blocked pursuant to Sec. 560.211 may, in the
discretion of the Office of Foreign Assets Control, be sold or
liquidated and the net proceeds placed in a blocked interest-bearing
account in the name of the owner of the property.
Subpart C--General Definitions
Sec. 560.301 Effective date.
The term effective date refers to the effective date of the
applicable prohibitions and directives contained in this part as
follows:
(a) With respect to the prohibitions and directives in Sec.
560.201 and Sec. Sec. 560.204 through 560.209 is 12:01 a.m., Eastern
Daylight Time, August 20, 1997. For the effective date of pre-existing
regulations and directives, see the Executive orders in the Authority
citation for this part and implementing regulations.
(b) With respect to prohibited transfers or other dealings in
blocked property and interests in property of the Government of Iran,
as defined in Sec. 560.304, and Iranian financial institutions, as
defined in Sec. 560.324, 12:01 a.m. eastern standard time, February 6,
2012; and
(c) With respect to a person whose property and interests in
property are otherwise blocked pursuant to paragraph (c) of Sec.
560.211, the earlier of the date of actual or constructive notice that
such person's property and interests in property are blocked.
Sec. 560.302 [Reserved].
Sec. 560.303 Iran; Iranian.
The term Iran means the territory of Iran and any other territory
or marine area, including the exclusive economic zone and continental
shelf, over which the Government of Iran claims sovereignty, sovereign
rights, or jurisdiction, provided that the Government of Iran exercises
partial or total de facto control over the area or derives a benefit
from economic activity in the area pursuant to an international
agreement. The term Iranian means pertaining to Iran as defined in this
section.
Sec. 560.304 Government of Iran.
The term Government of Iran includes:
(a) The state and the Government of Iran, as well as any political
subdivision, agency, or instrumentality thereof, including the Central
Bank of Iran;
(b) Any person owned or controlled, directly or indirectly, by the
foregoing;
(c) Any person to the extent that such person is, or has been,
since the effective date, acting or purporting to act, directly or
indirectly, for or on behalf of the foregoing; and
(d) Any other person determined by the Office of Foreign Assets
Control to be included within paragraphs (a) through (c) of this
section.
Note 1 to Sec. 560.304: The names of persons that OFAC has
determined fall within this definition are published in the Federal
Register and incorporated into the Office of Foreign Assets
Control's Specially Designated Nationals and Blocked Persons List
(``SDN List'') with the identifier ``[IRAN].'' The SDN List is
accessible through the following page on the Office of Foreign
Assets Control'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 SDN List.
Note 2 to Sec. 560.304: 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 Government of Iran.
Sec. 560.305 Person; entity.
(a) The term person means an individual or entity.
(b) The term entity means a partnership, association, trust, joint
venture, corporation, group, subgroup, or other organization.
Sec. 560.306 Iranian-origin goods or services; goods or services
owned or controlled by the Government of Iran.
(a) The terms goods of Iranian origin and Iranian-origin goods
include:
(1) Goods grown, produced, manufactured, extracted, or processed in
Iran; and
(2) Goods which have entered into Iranian commerce.
(b) The terms services of Iranian origin and Iranian-origin
services include:
(1) Services performed in Iran or by an entity organized under the
laws of
[[Page 64672]]
Iran or any jurisdiction within Iran, or a person residing in Iran; and
(2) Services performed outside Iran by a citizen, national or
permanent resident of Iran who is ordinarily resident in Iran, or by an
entity organized under the laws of Iran or any jurisdiction within
Iran.
(c) The term goods or services owned or controlled by the
Government of Iran includes:
(1) Goods grown, produced, manufactured, extracted or processed by
the Government of Iran or goods in its possession or control; and
(2) Services performed by the Government of Iran.
(d) The terms services of Iranian-origin, Iranian-origin services,
and services owned or controlled by the Government of Iran do not
include:
(1) Diplomatic and consular services performed by or on behalf of
the Government of Iran;
(2) Diplomatic and consular services performed by or on behalf of
the Government of the United States; or
(3) Services performed outside Iran by an Iranian citizen or
national who is resident in the United States or a third country,
provided such services are not performed by or on behalf of the
Government of Iran (other than diplomatic and consular services), an
entity organized under the laws of Iran or any jurisdiction within
Iran, or a person located in Iran.
Sec. 560.307 United States.
The term United States means the United States, its territories and
possessions, and all areas under the jurisdiction or authority thereof.
Sec. 560.308 Importation of goods.
With respect to goods (including software), the term importation
means the bringing of any goods into the United States, except that in
the case of goods transported by vessel, importation means the bringing
of any goods into the United States with the intent to unlade them.
Sec. 560.309 [Reserved]
Sec. 560.310 License.
Except as otherwise specified, the term license means any license
or authorization contained in or issued pursuant to this part.
Sec. 560.311 General license.
The term general license means any license or authorization the
terms of which are set forth in subpart E of this part.
Sec. 560.312 Specific license.
The term specific license means any license or authorization not
set forth in subpart E of this part but issued pursuant to this part.
Sec. 560.313 Entity owned or controlled by the Government of Iran.
The term entity owned or controlled by the Government of Iran
includes any corporation, partnership, association, or other entity in
which the Government of Iran owns a 50 percent or greater interest or a
controlling interest, and any entity which is otherwise controlled by
that government.
Sec. 560.314 United States person; U.S. person.
The term United States person or U.S. person means any United
States citizen, permanent resident alien, entity organized under the
laws of the United States or any jurisdiction within the United States
(including foreign branches), or any person in the United States.
Sec. 560.315 Information or informational materials.
(a) For purposes of this part, the term information or
informational materials includes, but is not limited to, publications,
films, posters, phonograph records, photographs, microfilms,
microfiche, tapes, compact disks, CD ROMs, artworks, and news wire
feeds.
Note to paragraph (a) of Sec. 560.315: To be considered
information or informational materials, artworks must be classified
under chapter heading 9701, 9702, or 9703 of the Harmonized Tariff
Schedule of the United States.
(b) The term information or informational materials, with respect
to exports, does not include items:
(1) That were, as of April 30, 1994, or that thereafter become,
controlled for export pursuant to section 5 of the Export
Administration Act of 1979 (50 U.S.C. App. 2401-2420, the ``EAA''), or
section 6 of the EAA to the extent that such controls promote the
nonproliferation or antiterrorism policies of the United States; or
(2) With respect to which acts are prohibited by 18 U.S.C. chapter
37.
Sec. 560.316 New investment.
The term new investment means a transaction after 12:01 Eastern
Daylight Time, May 7, 1995, that constitutes:
(a) A commitment or contribution of funds or other assets; or
(b) A loan or other extension of credit, as defined in Sec.
560.317.
Sec. 560.317 Credits or loans.
The term credits or loans means any transfer or extension of funds
or credit on a basis of an obligation to repay, or any assumption or
guarantee of the obligation of another to repay an extension of funds
or credit, including but not limited to: Overdrafts; currency swaps;
purchases of debt securities issued by the Government of Iran;
purchases of a loan made by another person; sales of financial assets
subject to an agreement to repurchase; renewals or refinancings whereby
funds or credits are transferred to or extended to a prohibited
borrower or prohibited recipient; the issuance of standby letters of
credit; and drawdowns on existing lines of credit.
Sec. 560.318 [Reserved]
Sec. 560.319 United States depository institution.
The term United States depository institution means any entity
(including its foreign branches) organized under the laws of the United
States or any jurisdiction within the United States, or any agency,
office, or branch located in the United States of a foreign entity,
that is engaged primarily in the business of banking (for example,
banks, savings banks, savings associations, credit unions, trust
companies, and United States bank holding companies).
Sec. 560.320 Iranian accounts.
The term Iranian accounts means accounts of persons who are
ordinarily resident in Iran, except when such persons are not located
in Iran, or of 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 this part, maintained
on the books of either a United States depository institution or a
United States registered broker or dealer in securities.
Sec. 560.321 United States registered broker or dealer in securities.
The term United States registered broker or dealer in securities
means any U.S. citizen, permanent resident alien, or entity organized
under the laws of the United States or of any jurisdiction within the
United States (including its foreign branches), or any agency, office
or branch of a foreign entity located in the United States, that:
(a) Is a ``broker'' or ``dealer'' in securities within the meanings
set forth in the Securities Exchange Act of 1934;
(b) Holds or clears customer accounts; and
(c) Is registered with the Securities and Exchange Commission under
the Securities Exchange Act of 1934.
Sec. 560.322 Blocked account; blocked property.
The terms blocked account and blocked property shall mean any
account or property subject to the
[[Page 64673]]
prohibitions in Sec. 560.211 held in the name of the Government of
Iran, any Iranian financial institution, or any other person whose
property and interests in property are blocked pursuant to Sec.
560.211, or in which the Government of Iran, an Iranian financial
institution, or such person has an interest, and with respect to which
payments, transfers, exportations, withdrawals, or other dealings may
not be made or effected except pursuant to an authorization or license
from the Office of Foreign Assets Control expressly authorizing such
action.
Note to Sec. 560.322: See Sec. 560.425 concerning the blocked
status of property and interests in property of an entity that is 50
percent or more owned by a person whose property and interests in
property are blocked pursuant to Sec. 560.211.
Sec. 560.323 Interest.
Except as otherwise provided in this part, the term interest, when
used with respect to property (e.g., ``an interest in property''),
means an interest of any nature whatsoever, direct or indirect.
Sec. 560.324 Iranian financial institution.
The term Iranian financial institution means any entity (including
foreign branches), wherever located, organized under the laws of Iran
or any jurisdiction within Iran, or owned or controlled by the
Government of Iran, or in Iran, or owned or controlled by any of the
foregoing, that is engaged in the business of accepting deposits,
making, granting, transferring, holding, or brokering loans or credits,
or purchasing or selling foreign exchange, securities, commodity
futures or options, or procuring purchasers and sellers thereof, as
principal or agent. It includes but is not limited to depository
institutions, banks, savings banks, money service businesses, trust
companies, insurance companies, securities brokers and dealers,
commodity futures and options brokers and dealers, forward contract and
foreign exchange merchants, securities and commodities exchanges,
clearing corporations, investment companies, employee benefit plans,
and holding companies, affiliates, or subsidiaries of any of the
foregoing.
Sec. 560.325 Property; property interest.
The terms property and property interest include, but are not
limited to, money, checks, drafts, bullion, bank deposits, savings
accounts, debts, indebtedness, obligations, notes, guarantees,
debentures, stocks, bonds, coupons, any other financial instruments,
bankers acceptances, mortgages, pledges, liens or other rights in the
nature of security, warehouse receipts, bills of lading, trust
receipts, bills of sale, any other evidences of title, ownership or
indebtedness, letters of credit and any documents relating to any
rights or obligations thereunder, powers of attorney, goods, wares,
merchandise, chattels, stocks on hand, ships, goods on ships, real
estate mortgages, deeds of trust, vendors' sales agreements, land
contracts, leaseholds, ground rents, real estate and any other interest
therein, options, negotiable instruments, trade acceptances, royalties,
book accounts, accounts payable, judgments, patents, trademarks or
copyrights, insurance policies, safe deposit boxes and their contents,
annuities, pooling agreements, services of any nature whatsoever,
contracts of any nature whatsoever, and any other property, real,
personal, or mixed, tangible or intangible, or interest or interests
therein, present, future, or contingent.
Sec. 560.326 Transfer.
The term transfer means any actual or purported act or transaction,
whether or not evidenced by writing, and whether or not done or
performed within the United States, the purpose, intent, or effect of
which is to create, surrender, release, convey, transfer, or alter,
directly or indirectly, any right, remedy, power, privilege, or
interest with respect to any property. Without limitation on the
foregoing, it shall include the making, execution, or delivery of any
assignment, power, conveyance, check, declaration, deed, deed of trust,
power of attorney, power of appointment, bill of sale, mortgage,
receipt, agreement, contract, certificate, gift, sale, affidavit, or
statement; the making of any payment; the setting off of any obligation
or credit; the appointment of any agent, trustee, or fiduciary; the
creation or transfer of any lien; the issuance, docketing, filing, or
levy of or under any judgment, decree, attachment, injunction,
execution, or other judicial or administrative process or order, or the
service of any garnishment; the acquisition of any interest of any
nature whatsoever by reason of a judgment or decree of any foreign
country; the fulfillment of any condition; the exercise of any power of
appointment, power of attorney, or other power; or the acquisition,
disposition, transportation, importation, exportation, or withdrawal of
any security.
Sec. 560.327 U.S. financial institution.
The term U.S. financial institution means any U.S. entity
(including its foreign branches) that is engaged in the business of
accepting deposits, making, granting, transferring, holding, or
brokering loans or credits, or purchasing or selling foreign exchange,
securities, commodity futures or options, or procuring purchasers and
sellers thereof, as principal or agent. It includes but is not limited
to depository institutions, banks, savings banks, trust companies,
securities brokers and dealers, commodity futures and options brokers
and dealers, forward contract and foreign exchange merchants,
securities and commodities exchanges, clearing corporations, investment
companies, employee benefit plans, and U.S. holding companies, U.S.
affiliates, or U.S. subsidiaries of any of the foregoing. This term
includes those branches, offices, and agencies of foreign financial
institutions that are located in the United States, but not such
institutions' foreign branches, offices, or agencies.
Subpart D--Interpretations
Sec. 560.401 Reference to amended sections.
Except as otherwise specified, reference to any provision in or
appendix to this part or chapter or to any regulation, ruling, order,
instruction, directive, or license issued pursuant to this part refers
to the same as currently amended.
Sec. 560.402 Effect of amendment.
Unless otherwise specifically provided, any amendment,
modification, or revocation of any provision in or appendix to this
part or chapter or of any order, regulation, ruling, instruction, or
license issued by the Office of Foreign Assets Control does not affect
any act done or omitted, or any civil or criminal proceeding commenced
or pending, prior to such amendment, modification, or revocation. All
penalties, forfeitures, and liabilities under any such order,
regulation, ruling, instruction, or license continue and may be
enforced as if such amendment, modification, or revocation had not been
made.
Sec. 560.403 Transshipment or transit through Iran.
The prohibitions in Sec. Sec. 560.204, 560.206, and 560.208 apply
to export, reexport or supply transactions which require a
transshipment or transit of goods or technology through Iran to third
countries.
Sec. 560.404 [Reserved]
Sec. 560.405 Transactions ordinarily incident to a licensed
transaction authorized.
Any transaction ordinarily incident to a licensed transaction and
necessary to
[[Page 64674]]
give effect thereto is also authorized, except:
(a) An ordinarily incident transaction, not explicitly authorized
within the terms of the license, involving a debit to a blocked account
or a transfer of blocked property;
(b) Payments or transfers of funds;
Note to paragraph (b) of Sec. 560.405: See Sec. 560.516 for a
general license authorizing United States depository institutions or
United States registered brokers or dealers in securities to process
transfers of funds if the transfer arises from, and is ordinarily
incident and necessary to give effect to, an underlying transaction
authorized by a specific or general license issued pursuant to, or
set forth in, this part.
(c) Provision of any transportation services to or from Iran not
explicitly authorized in or pursuant to this part other than loading,
transporting, and discharging licensed or exempt cargo there;
(d) Distribution or leasing in Iran of any containers or similar
goods owned or controlled by United States persons after the
performance of transportation services to Iran; and
(e) Financing of sales for the exportation or reexportation of
agricultural commodities, medicine, and medical devices that is
authorized by general or specific license pursuant to Sec. 560.530.
Note to paragraph (e) of Sec. 560.405: See Sec. 560.530(a)(2)
and (a)(3) for general licenses authorizing, with certain
exceptions, the exportation or reexportation of food, medicine, and
generally licensed medical devices to the Government of Iran,
individuals or entities in Iran, or persons in third countries
purchasing specifically for resale to any of the foregoing. These
general licenses also authorize the conduct of related transactions,
including, but not limited to, financing and payment, provided that
payment terms and financing are limited to, and consistent with,
those authorized by Sec. 560.532. Also, see Sec. 560.532 for a
general license for payment terms for sales authorized by one of the
general licenses set forth in paragraphs (a)(2) and (a)(3) of Sec.
560.530 or by a specific license issued pursuant to paragraph (a)(1)
of the same section.
Sec. 560.406 Transshipment or transit through the United States.
(a) The prohibitions in Sec. 560.201 apply to the importation into
the United States, for transshipment or transit, of Iranian-origin
goods or goods owned or controlled by the Government of Iran which are
intended or destined for third countries.
(b) The prohibitions in Sec. 560.204 apply to the transshipment or
transit of foreign goods through the United States which are intended
or destined for Iran or the Government of Iran, including entities
owned or controlled by the Government of Iran.
(c) Goods in which the Government of Iran, any Iranian financial
institution, or any other person whose property and interests in
property are blocked pursuant to Sec. 560.211 has an interest which
are imported into or transshipped through the United States are subject
to the prohibitions in Sec. 560.211.
Sec. 560.407 Transactions related to Iranian-origin goods.
(a) Importation into the United States from third countries of
goods containing Iranian-origin raw materials or components and
transactions relating to such goods are not prohibited by Sec. 560.201
or Sec. 560.206 if those raw materials or components have been
incorporated into manufactured products or substantially transformed in
a third country by a person other than a United States person.
(b) Transactions relating to Iranian-origin goods that have not
been incorporated into manufactured products or substantially
transformed in a third country are prohibited.
Sec. 560.408 Importation into and release from a bonded warehouse or
foreign trade zone.
The prohibitions in Sec. 560.201 apply to importation into a
bonded warehouse or a foreign trade zone of the United States.
Sec. 560.409 [Reserved]
Sec. 560.410 Provision of services.
(a) The prohibition on the exportation, reexportation, sale or
supply of services contained in Sec. 560.204 applies to services
performed on behalf of a person in Iran or the Government of Iran or
where the benefit of such services is otherwise received in Iran, if
such services are performed:
(1) In the United States, or
(2) Outside the United States by a United States person, including
by an overseas branch of an entity located in the United States.
(b) The benefit of services performed anywhere in the world on
behalf of the Government of Iran is presumed to be received in Iran.
(c) The prohibitions on transactions involving blocked property
contained in Sec. 560.211 apply to services performed in the United
States or by U.S. persons, wherever located, including by an overseas
branch of an entity located in the United States:
(1) On behalf of or for the benefit of 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; or
(2) With respect to property interests of 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) Example. A United States person is engaged in a prohibited
exportation of services to Iran when it extends credit to a third-
country firm specifically to enable that firm to manufacture goods for
sale to Iran or for an entity of the Government of Iran. See also Sec.
560.416.
Sec. 560.411 [Reserved]
Sec. 560.412 Extensions of credit or loans to Iran.
(a) The prohibitions contained in Sec. Sec. 560.204 and 560.207
apply to but are not limited to the unauthorized renewal or
rescheduling of credits or loans in existence as of May 6, 1995, such
as the extension of a standby letter of credit.
(b) The prohibitions contained in Sec. 560.209 apply, among other
things, to the unauthorized renewal or rescheduling of credits or loans
in existence as of March 15, 1995.
(c) The prohibitions contained in Sec. Sec. 560.204, 560.207 and
560.209 apply to, among other things, credits or loans in any currency.
Sec. 560.413 [Reserved]
Sec. 560.414 Reexportation of certain U.S.-origin goods exported
prior to May 7, 1995.
The prohibitions on reexportation in Sec. 560.205 do not apply to
United States-origin goods or technology that were exported from the
United States prior to 12:01 a.m., Eastern Daylight Time, May 7, 1995,
if:
(a) Such goods or technology were not the property of a United
States person as of 12:01 a.m. Eastern Daylight Time, May 7, 1995; and
(b) The reexportation of the U.S.-origin goods or technology to
Iran or the Government of Iran was not subject to reexport (as opposed
to export) license application requirements under U.S. regulations in
effect prior to May 6, 1995.
Note 1 to Sec. 560.414: The exclusion in this section applies,
among other things, to goods that were as of May 6, 1995, classified
under the U.S. Department of Commerce's Export Administration
Regulations (15 CFR parts 730 through 774) as ECCNs 2A994; 3A993;
5A992; 5A995; 6A990; 6A994; 7A994; 8A992; 8A994; 9A990; 9A992; and
9A994, that were exported from the United States prior to 12:01 a.m.
Eastern Daylight Time, May 7, 1995, and were not the property of a
United States person as of 12:01 a.m. Eastern Daylight Time, May 7,
1995. As of April 26, 1999, items covered by this note are
[[Page 64675]]
classified under ECCNs 2A994; 3A992.a; 5A991.f; 5A992.a and .c;
6A991; 6A998.a; 7A994; 8A992.d, .e, .f and .g; 9A990.a and .b; and
9A991.d and .e.
Note 2 to Sec. 560.414: A reexportation of U.S.-origin goods
or technology which meets the conditions of paragraph (a) of this
section, or which is not within the scope of Sec. 560.205,
nevertheless may require specific authorization by other agencies of
the U.S. Government for reexportation to Iran or the Government of
Iran. For example, items which meet the conditions of paragraph (a)
may nevertheless require an export license under the End User and
End Use Control Policies found in provisions of the Export
Administration Regulations (15 CFR part 744).
Sec. 560.415 [Reserved]
Sec. 560.416 Brokering services.
(a) For purposes of the prohibitions in Sec. Sec. 560.201,
560.204, 560.205, 560.206, and 560.208, the term services includes
performing a brokering function.
(b) Examples. A person within the United States, or a United States
person, wherever located, may not:
(1) Act as broker for the provision of goods, services or
technology, from whatever source, to or from Iran or the Government of
Iran;
(2) Act as broker for the purchase or swap of crude oil of Iranian
origin or owned or controlled by the Government of Iran;
(3) Act as broker for the provision of financing, a financial
guarantee or an extension of credit by any person to Iran or the
Government of Iran;
(4) Act as a broker for the provision of financing, a financial
guarantee or an extension of credit to any person specifically to
enable that person to construct or operate a facility in Iran or owned
or controlled by the Government of Iran; or
(5) Act as a broker for the provision of financing, a financial
guarantee, or an extension of credit to any person specifically to
enable that person to provide goods, services, or technology intended
for Iran or the Government of Iran.
Sec. 560.417 Facilitation; change of policies and procedures;
referral of business opportunities offshore.
With respect to Sec. 560.208, a prohibited facilitation or
approval of a transaction by a foreign person occurs, among other
instances, when a United States person:
(a) Alters its operating policies or procedures, or those of a
foreign affiliate, to permit a foreign affiliate to accept or perform a
specific contract, engagement or transaction involving Iran or the
Government of Iran without the approval of the United States person,
where such transaction previously required approval by the United
States person and such transaction by the foreign affiliate would be
prohibited by this part if performed directly by a United States person
or from the United States;
(b) Refers to a foreign person purchase orders, requests for bids,
or similar business opportunities involving Iran or the Government of
Iran to which the United States person could not directly respond as a
result of the prohibitions contained in this part; or
(c) Changes the operating policies and procedures of a particular
affiliate with the specific purpose of facilitating transactions that
would be prohibited by this part if performed by a United States person
or from the United States.
Sec. 560.418 Release of technology or software in the United States
or a third country.
The release of technology or software in the United States, or by a
United States person wherever located, to any person violates the
prohibitions of this part if made with knowledge or reason to know the
technology is intended for Iran or the Government of Iran, unless that
technology or software meets the definition of information and
informational materials in Sec. 560.315.
Note 1 to Sec. 560.418: The release of technology or software
in the United States, or the release of U.S. origin technology or
software in a third country, to a foreign national may require a
license from the U.S. Department of Commerce's Bureau of Industry
and Security under the Export Administration Regulations, 15 CFR
parts 730 through 774 (the ``EAR''). The EAR require a license for
such release if both of the following conditions are met:
(a) That technology or software would require a license for
exportation (or reexportation) to the home country of the foreign
national; and
(b) The foreign national is not a citizen or permanent resident
of the United States (or of the third country) or is not a protected
individual under the Immigration and Naturalization Act (8 U.S.C.
Sec. 1324(b)(a)(3)). See 15 CFR 734.2(b)(2)(ii) and 734.2(b)(5).
Note 2 to Sec. 560.418: The transfer to a foreign national of
technology subject to regulations administered by the U.S.
Department of State or other agencies of the U.S. Government may
require authorization by those agencies.
Sec. 560.419 U.S. employment of persons ordinarily resident in Iran.
The prohibitions in Sec. 560.201 make it unlawful to hire an
Iranian national ordinarily resident in Iran to come to the United
States solely or for the principal purpose of engaging in employment on
behalf of an entity in Iran or as the employee of a U.S. person, unless
authorized pursuant to Sec. 560.505. See also Sec. 560.418 with
respect to the release of technology and software.
Sec. 560.420 Reexportation by non-U.S. persons of certain foreign-
made products containing U.S.-origin goods or technology.
For purposes of satisfying the de minimis content rule in Sec.
560.205(b)(2):
(a) U.S.-origin goods (excluding software) falling within the
definition in Sec. 560.205 must comprise less than 10 percent of the
total value of the foreign-made good (excluding software);
(b) U.S.-origin software falling within the definition in Sec.
560.205 must comprise less than 10 percent of the total value of the
foreign-made software;
(c) U.S.-origin technology falling within the definition in Sec.
560.205 must comprise less than 10 percent of the total value of the
foreign-made technology; and,
(d) In cases involving a complex product made of a combination of
U.S.-origin goods (including software) and technology falling within
the definition in Sec. 560.205, the aggregate value of all such U.S.-
origin goods (including software) and such technology contained in the
foreign-made product must be less than 10 percent of the total value of
the foreign-made product.
Note 1 to Sec. 560.420: Notwithstanding the exceptions
contained in Sec. 560.205(b)(1) and (b)(2) and this section, a
reexportation to Iran or the Government of Iran of U.S.-origin items
falling within the definition in Sec. 560.205 is prohibited if
those U.S.-origin goods (including software) or that technology have
been substantially transformed or incorporated into a foreign-made
end product which is destined to end uses or end users prohibited
under regulations administered by other U.S. Government agencies.
See, e.g., the Export Administration Regulations (31 CFR
736.2(b)(5), 744.2, 744.3, 744.4, 744.7, and 744.10); International
Traffic in Arms Regulations (22 CFR 123.9).
Note 2 to Sec. 560.420: A reexportation not prohibited by
Sec. 560.205 may nevertheless require authorization by the U.S.
Department of Commerce, the U.S. Department of State or other
agencies of the U.S. Government.
Note 3 to Sec. 560.420: The provisions of Sec. 560.205 and
this section apply only to persons other than United States persons.
Sec. 560.421 Setoffs prohibited.
A setoff against blocked property (including a blocked account),
whether by a U.S. bank or other U.S. person, is a prohibited transfer
under Sec. 560.211 if effected after the effective date.
[[Page 64676]]
Sec. 560.422 Termination and acquisition of an interest in blocked
property.
(a) Whenever a transaction licensed or authorized by or pursuant to
this part results in the transfer of property (including any property
interest) away 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, such property shall no
longer be deemed to be property blocked pursuant to Sec. 560.211,
unless there exists in the property another interest that is blocked
pursuant to Sec. 560.211, the transfer of which has not been effected
pursuant to license or other authorization.
(b) Unless otherwise specifically provided in a license or
authorization issued pursuant to this part, if property (including any
property interest) is transferred or attempted to be transferred to 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, such property shall be deemed to be property in which
the Government of Iran, an Iranian financial institution, or that
person has an interest and therefore blocked.
Sec. 560.423 Offshore transactions involving blocked property.
The prohibitions in Sec. 560.211 on transactions or dealings
involving blocked property apply to transactions by any U.S. person in
a location outside the United States with respect to property held in
the name of 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, or property in which 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 has or has had an interest since the effective date.
Sec. 560.424 Payments from blocked accounts to satisfy obligations
prohibited.
Pursuant to Sec. 560.211, no debits may be made to a blocked
account to pay obligations to U.S. persons or other persons, except as
authorized by or pursuant to this part.
Note to Sec. 560.424: See also Sec. 560.502(f), which
provides that no license or other authorization contained in or
issued pursuant to this part authorizes transfers of or payments
from blocked property or debits to blocked accounts unless the
license or other authorization explicitly authorizes the transfer of
or payment from blocked property or the debit to a blocked account.
Sec. 560.425 Entities owned by a person whose property and interests
in property are blocked.
A person whose property and interests in property are blocked
pursuant to Sec. 560.211 has an interest in all property and interests
in property of an entity in which it owns, directly or indirectly, a 50
percent or greater interest. The property and interests in property of
such an entity, therefore, are blocked, and such an entity is a person
whose property and interests in property are blocked pursuant to Sec.
560.211, regardless of whether the entity itself is designated pursuant
to Sec. 560.211.
Note to Sec. 560.425: This section, which deals with the
consequences of ownership of entities, in no way limits the
definition of the Government of Iran in Sec. 560.304.
Sec. 560.426 Charitable contributions.
Unless specifically authorized by the Office of Foreign Assets
Control pursuant to this part, no charitable contribution of funds,
goods, services, or technology, including contributions to relieve
human suffering, such as food, clothing or medicine, may be made by,
to, or for the benefit of, or received 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. For the
purposes of this part, a contribution is made by, to, or for the
benefit of, or received 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 if made by, to, or in
the name of, or received from or in the name of, such a person; if made
by, to, or in the name of, or received from or in the name of, an
entity or individual acting for or on behalf of, or owned or controlled
by, such a person; or if made in an attempt to violate, to evade, or to
avoid the bar on the provision of contributions by, to, or for the
benefit of such a person, or the receipt of contributions from any such
person.
Sec. 560.427 Exportation, reexportation, sale or supply of financial
services to Iran or the Government of Iran.
(a) The prohibition on the exportation, reexportation, sale or
supply of financial services to Iran or the Government of Iran
contained in Sec. 560.204 applies to:
(1) The transfer of funds, directly or indirectly, from the United
States or by a U.S. person, wherever located, to Iran or the Government
of Iran; and
(2) The provision, directly or indirectly, to Iran or the
Government of Iran of insurance services, investment or brokerage
services (including but not limited to brokering or trading services
regarding securities, debt, commodities, options, or foreign exchange),
banking services, money remittance services; loans, guarantees, letters
of credit, or other extensions of credit; or the service of selling or
redeeming traveler's checks, money orders, and prepaid access products.
Note to paragraph (a) of Sec. 560.427: See Sec. 560.516 of
this part, which authorizes only United States depository
institutions and United States registered brokers or dealers in
securities to process certain transfers of funds to or from Iran.
(b) Pursuant to the prohibition in Sec. 560.204 on the
exportation, reexportation, sale or supply of financial services to
Iran or the Government of Iran, United States depository institutions
and United States registered brokers or dealers in securities are
prohibited from performing services with respect to Iranian accounts,
as defined in Sec. 560.320.
Note to paragraph (b) of Sec. 560.427: See Sec. 560.517 of
this part for general licenses authorizing United States depository
institutions and United States registered brokers or dealers in
securities to operate Iranian accounts in certain limited
circumstances.
Sec. 560.428 Credit extended and cards issued by U.S. financial
institutions.
The prohibition in Sec. 560.211 on dealing in property subject to
that section prohibits U.S. financial institutions from performing
under any existing credit agreements, including, but not limited to,
charge cards, debit cards, or other credit facilities issued by a U.S.
financial institution to 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.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
Sec. 560.501 General and specific licensing procedures.
For provisions relating to licensing procedures, see part 501,
subpart E of this chapter. Licensing actions taken pursuant to part 501
of this chapter with respect to the prohibitions contained in this part
are considered actions taken pursuant to this part. General licenses
and statements of licensing policy relating to this part also may be
available through the Iran sanctions page on the Office of Foreign
Assets Control's Web site (www.treasury.gov/ofac).
[[Page 64677]]
Sec. 560.502 Effect of license or authorization.
(a) No license or other authorization contained in this part, or
otherwise issued by the Office of Foreign Assets Control, authorizes or
validates any transaction effected prior to the issuance of such
license or other authorization, unless specifically provided in such
license or authorization.
(b) No regulation, ruling, instruction, or license authorizes any
transaction prohibited under this part unless the regulation, ruling,
instruction, or license is issued by the Office of Foreign Assets
Control and specifically refers to this part. No regulation, ruling,
instruction, or license referring to this part shall be deemed to
authorize any transaction prohibited by any other part of this chapter
unless the regulation, ruling, instruction, or license specifically
refers to such part.
(c) Any regulation, ruling, instruction, or license authorizing any
transaction otherwise prohibited under this part has the effect of
removing a prohibition contained in this part from the transaction, but
only to the extent specifically stated by its terms. Unless the
regulation, ruling, instruction, or license otherwise specifies, such
an authorization does not create any right, duty, obligation, claim, or
interest in, or with respect to, any property which would not otherwise
exist under ordinary principles of law.
(d) All transactions involving property and interests in property
of 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 authorized under specific licenses issued
pursuant to this part prior to February 6, 2012, are authorized, and
such specific licenses shall remain in effect according to their terms,
provided that such specific licenses have an expiration date. If a
specific license issued pursuant to this part but not part 535 has no
expiration date, then all transactions involving property and interests
in property of 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 authorized under such a
specific license were authorized until April 6, 2012, and such a
specific license shall otherwise expire in its entirety on January 22,
2013. If a specific license issued pursuant to this part and part 535
has no expiration date, then all transactions involving property and
interests in property of 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 authorized under such a
specific license are authorized, and such a specific license shall
remain in effect according to its terms. Nothing in this paragraph
authorizes payments from blocked funds or debits to blocked accounts,
except for payments from funds or debits to accounts blocked pursuant
to part 535 that are authorized by specific licenses issued pursuant to
this part and part 535 of this chapter.
(e) Nothing contained in this part shall be construed to supersede
the requirements established under any other provision of law or to
relieve a person from any requirement to obtain a license or other
authorization from another department or agency of the U.S. Government
in compliance with applicable laws and regulations subject to the
jurisdiction of that department or agency. For example, exports of
goods, services, or technical data which are not prohibited by this
part or which do not require a license by the Office of Foreign Assets
Control, nevertheless may require authorization by the U.S. Department
of Commerce, the U.S. Department of State, or other agencies of the
U.S. Government. See also Sec. 560.701(d).
(f) No license or other authorization contained in or issued
pursuant to this part authorizes transfers of or payments from blocked
property or debits to blocked accounts unless the license or other
authorization explicitly authorizes the transfer of or payment from
blocked property or the debit to a blocked account.
(g) Any payment relating to a transaction authorized in or pursuant
to this part that is routed through the U.S. financial system should
reference the relevant Office of Foreign Assets Control general or
specific license authorizing the payment to avoid the blocking or
rejection of the transfer.
Sec. 560.503 Exclusion from licenses.
The Office of Foreign Assets Control reserves the right to exclude
any person, property, transaction, or class thereof from the operation
of any license or from the privileges conferred by any license. The
Office of Foreign Assets Control also reserves the right to restrict
the applicability of any license to particular persons, property,
transactions, or classes thereof. Such actions are binding upon actual
or constructive notice of the exclusions or restrictions.
Sec. 560.504 [Reserved]
Sec. 560.505 Activities and services related to certain nonimmigrant
and immigrant categories authorized.
(a)(1) Persons otherwise eligible for non-immigrant classification
under categories A-3 and G-5 (attendants, servants and personal
employees of aliens in the United States on diplomatic status), D
(crewmen), F (students), I (information media representatives), J
(exchange visitors), M (non-academic students), O (aliens with
extraordinary ability), P (athletics, artists and entertainers), Q
(international cultural exchange visitors), R (religious workers), or S
(witnesses) are authorized to carry out in the United States those
activities for which such a visa has been granted by the U.S. State
Department or such nonimmigrant status or related benefit has been
granted by the U.S. Department of Homeland Security.
(2) U.S. persons are authorized to export services to Iran in
connection with the filing of an individual's application for the non-
immigrant visa categories listed in paragraph (b)(1) of this section.
(b)(1) Persons otherwise eligible for nonimmigrant classification
under categories E-2 (treaty investor), H (temporary worker), or L
(intra-company transferee) and all immigrant classifications are
authorized to carry out in the United States those activities for which
such a visa has been granted by the U.S. State Department or such
nonimmigrant or immigrant status, or related benefit, has been granted
by the U.S. Department of Homeland Security, provided that the persons
are not coming to the United States to work as an agent, employee, or
contractor of the Government of Iran or a business entity or other
organization in Iran.
(2) U.S. persons are authorized to export services to Iran in
connection with the filing of an individual's application for the visa
categories listed in paragraph (b)(1) of this section.
(c)(1) U.S. persons are authorized to engage in all transactions
necessary to export financial services to Iran in connection with an
individual's application for a non-immigrant visa under category E-2
(treaty investor) or an immigrant visa under category EB-5 (immigrant
investor), provided that any transfer of funds pursuant to the
authorization set forth in this paragraph is effected in accordance
with Sec. 560.516.
(2) In the event services are exported under paragraph (c)(1) of
this section in connection with an application for an E-2 or EB-5 visa
that is denied, withdrawn, or otherwise does not result
[[Page 64678]]
in the issuance of such visa, U.S. persons are authorized to transfer,
in a lump sum back to Iran or to a third country, any funds belonging
to the applicant that are held in an escrow account during the pendency
of, and in connection with, such visa application, provided that any
transfer of funds pursuant to the authorization set forth in this
paragraph is effected in accordance with Sec. 560.516.
(3) Paragraph (c)(1) of this section does not authorize:
(i) The exportation of financial services by U.S. persons other
than in connection with funds used in pursuit of an E-2 or EB-5 visa;
(ii) Any investment in Iran by a U.S. person;
(iii) The exportation or reexportation to Iran of any goods
(including software) or technology; or
(iv) The provision of services to any persons coming to the United
States to work as an agent, employee, or contractor of the Government
of Iran or a business entity or other organization in Iran.
(d) Paragraph (a)(1) of this section authorizes the release of
technology or software to students ordinarily resident in Iran who are
attending school in the United States as authorized by that paragraph,
provided that all of the following requirements are met:
(1) Such release is ordinarily incident and necessary to the
educational program in which the student is enrolled;
(2) The technology or software being released is designated as
EAR99 under the Export Administration Regulations, 15 CFR parts 730
through 774 (the ``EAR''), or constitutes Educational Information not
subject to the EAR, as set forth in 15 CFR 734.9;
(3) The release does not otherwise require a license from the
Department of Commerce; and
(4) The student to whom the release is made is not enrolled in
school or participating in the educational program as an agent,
employee, or contractor of the Government of Iran or a business entity
or other organization in Iran.
Note to Sec. 560.505: See Sec. 560.555 of this part for
general licenses authorizing the importation and exportation of
services related to conferences in the United States or third
countries.
Sec. 560.506 Importation and exportation of certain gifts authorized.
The importation into the United States of Iranian-origin goods from
Iran or a third country, and the exportation from the United States to
Iran of goods, are authorized for goods sent as gifts to persons
provided that the value of each gift is not more than $100; the goods
are of a type and in quantities normally given as gifts between
individuals; and the goods are not controlled for chemical and
biological weapons (CB), missile technology (MT), national security
(NS), or nuclear proliferation (NP). See Commerce Control List, Export
Administration Regulations (15 CFR part 774).
Sec. 560.507 [Reserved]
Sec. 560.508 Telecommunications and mail transactions authorized.
(a) All transactions with respect to the receipt and transmission
of telecommunications involving Iran are authorized. This section does
not authorize the provision, sale, or lease 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 telecommunications equipment or technology; nor does it
authorize the provision, sale, or leasing of capacity on
telecommunications transmission facilities (such as satellite or
terrestrial network connectivity).
(b) All transactions by U.S. persons, including payment and
transfers to common carriers, incident to the receipt or transmission
of mail between the United States and Iran are authorized, provided
that mail is limited to personal communications not involving a
transfer of anything of value. For purposes of this section, the term
mail includes parcels only to the extent the parcels contain goods
exempted from the prohibitions contained in this part or otherwise
eligible for importation from or exportation to Iran under a general or
specific license.
Sec. 560.509 Certain transactions related to patents, trademarks, and
copyrights authorized.
(a) All of the following transactions in connection with patent,
trademark, copyright or other intellectual property protection in the
United States or Iran are authorized, including importation of or
dealing in Iranian-origin services, payment for such services, and
payment to persons in Iran directly connected to such intellectual
property protection:
(1) The filing and prosecution of any application to obtain a
patent, trademark, copyright or other form of intellectual property
protection;
(2) The receipt of a patent, trademark, copyright or other form of
intellectual property protection;
(3) The renewal or maintenance of a patent, trademark, copyright or
other form of intellectual property protection; and
(4) The filing and prosecution of opposition or infringement
proceedings with respect to a patent, trademark, copyright or other
form of intellectual property protection, or the entrance of a defense
to any such proceedings.
(b) This section authorizes the payment of fees currently due to
the United States Government or the Government of Iran, or of the
reasonable and customary fees and charges currently due to attorneys or
representatives within the United States or Iran, in connection with
the transactions authorized in paragraph (a) of this section, except
that payment effected pursuant to the terms of this paragraph may not
be made from a blocked account.
Sec. 560.510 Transactions related to the resolution of disputes
between the United States or United States nationals and the Government
of Iran.
(a) Except as otherwise authorized, specific licenses may be issued
on a case-by-case basis to authorize transactions in connection with
awards, decisions or orders of the Iran-United States Claims Tribunal
in The Hague, the International Court of Justice, or other
international tribunals (collectively, ``tribunals''); agreements
settling claims brought before tribunals; and awards, orders, or
decisions of an administrative, judicial, or arbitral proceeding in the
United States or abroad, where the proceeding involves the enforcement
of awards, decisions, or orders of tribunals, or is contemplated under
an international agreement, or involves claims arising before 12:01
a.m. Eastern Daylight Time, May 7, 1995, that resolve disputes between
the Government of Iran and the United States or United States
nationals, including the following transactions:
(1) Importation into the United States of, or any transaction
related to, goods and services of Iranian origin or owned or controlled
by the Government of Iran;
(2) Exportation or reexportation to Iran or the Government of Iran
of any goods, technology, or services, except to the extent that such
exportation or reexportation is also subject to export licensing
application requirements of another agency of the United States
Government and the granting of such a license by that agency would be
prohibited by law;
(3) Financial transactions related to the resolution of disputes at
tribunals, including transactions related to the funding of proceedings
or of accounts related to proceedings or to a tribunal; participation,
representation, or testimony before a tribunal; and the payment of
awards of a tribunal; and
[[Page 64679]]
(4) Other transactions otherwise prohibited by this part which are
necessary to permit implementation of the foregoing awards, decisions,
orders, or agreements.
(b) Specific licenses may be issued on a case-by-case basis to
authorize payment of costs related to the storage or maintenance of
goods in which the Government of Iran has title, and to authorize the
transfer of title to such goods, provided that such goods are in the
United States and that such goods are the subject of a proceeding
pending before a tribunal.
(c)(1) All transactions are authorized with respect to the
importation of Iranian-origin goods and services necessary to the
initiation and conduct of legal proceedings, in the United States or
abroad, including administrative, judicial, and arbitral proceedings
and proceedings before tribunals.
(2) Specific licenses may be issued on a case-by-case basis to
authorize the exportation to Iran or the Government of Iran of goods,
and of services not otherwise authorized by Sec. 560.525, necessary to
the initiation and conduct of legal proceedings, in the United States
or abroad, including administrative, judicial, and arbitral proceedings
and proceedings before tribunals, except to the extent that the
exportation is also subject to export licensing application
requirements of another agency of the United States Government and the
granting of such a license by that agency would be prohibited by law.
(3) Representation of United States persons or of third country
persons in legal proceedings, in the United States or abroad, including
administrative, judicial, and arbitral proceedings and proceedings
before tribunals, against Iran or the Government of Iran is not
prohibited by this part. The exportation of certain legal services to a
person in Iran or the Government of Iran is authorized in Sec.
560.525.
Note to paragraph (c)(3) of Sec. 560.510: The entry of any
judgment or order, or entry into a settlement agreement, that
effects a transfer of blocked property or interests in property, or
the execution of any judgment against property or interests in
property blocked pursuant to Sec. 560.211 is prohibited, unless
specifically licensed in accordance with Sec. 560.212(e). See Sec.
560.525(c).
(d) The following are authorized:
(1) All transactions related to payment of awards of the Iran-
United States Claims Tribunal in The Hague against Iran.
(2) All transactions necessary to the payment and implementation of
awards (other than exports or reexports subject to export license
application requirements of other agencies of the United States
Government) in a legal proceeding to which the United States Government
is a party, or to payments pursuant to settlement agreements entered
into by the United States Government in such a legal proceeding.
Sec. 560.511 [Reserved]
Sec. 560.512 Iranian Government missions in the United States.
(a) The importation of goods or services into the United States by,
and the provision of goods or services in the United States to, the
diplomatic missions of the Government of Iran to international
organizations in the United States, and the Iranian Interests Section
of the Embassy of Pakistan (or any successor protecting power) in the
United States are authorized, provided that:
(1) The goods or services are for the conduct of the official
business of the missions or the Iranian Interests Section, or for
personal use of the employees of the missions or the Iranian Interests
Section, and are not for resale;
(2) The transaction does not involve the purchase, sale, financing,
or refinancing of real property;
(3) The transaction is not otherwise prohibited by law; and
(4) The transaction is conducted through an account at a U.S.
financial institution specifically licensed by the Office of Foreign
Assets Control.
Note to paragraph (a)(4) of Sec. 560.512: U.S. financial
institutions are required to obtain specific licenses to operate
accounts for, or extend credit to, the diplomatic missions of the
Government of Iran to international organizations in the United
States, or the Iranian Interests Section of the Embassy of Pakistan
(or any successor protecting power) in the United States.
(b) The importation of goods or services into the United States by,
and the provision of goods or services in the United States to, the
employees of the diplomatic missions of the Government of Iran to
international organizations in the United States, and the employees of
the Iranian Interests Section of the Embassy of Pakistan (or any
successor protecting power) in the United States, are authorized,
provided that:
(1) The goods or services are for personal use of the employees of
the missions or the Iranian Interests Section, and are not for resale;
and
(2) The transaction is not otherwise prohibited by law.
Sec. 560.513-560.515 [Reserved]
Sec. 560.516 Transfers of funds involving Iran.
(a) United States depository institutions are authorized to process
transfers of funds to or from Iran, or for the direct or indirect
benefit of persons in Iran or the Government of Iran, if the transfer
arises from, and is ordinarily incident and necessary to give effect
to, an underlying transaction that has been authorized by a specific or
general license issued pursuant to, or set forth in, this part and does
not involve debiting or crediting an Iranian account.
(b) United States registered brokers or dealers in securities are
authorized to process transfers of funds to or from Iran, or for the
direct or indirect benefit of persons in Iran or the Government of
Iran, if the transfer arises from, and is ordinarily incident and
necessary to give effect to, an underlying transaction that has been
authorized by a specific or general license issued pursuant to, or set
forth in, this part and does not involve debiting or crediting an
Iranian account.
Sec. 560.517 Exportation of services: Iranian accounts at United
States depository institutions or United States registered brokers or
dealers in securities.
(a) United States depository institutions are authorized to provide
and be compensated for the following services and incidental
transactions with respect to Iranian accounts other than blocked
accounts, as defined in Sec. 560.322:
(1) The maintenance of Iranian accounts other than blocked
accounts, including the payment of interest and the debiting of service
charges; and
(2) At the request of the account party, who may not 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, the closing of Iranian accounts other than blocked
accounts and the lump sum transfer only to the account party of all
remaining funds and other assets in the account.
(b) United States registered brokers or dealers in securities are
authorized to provide and be compensated for the following services and
incidental transactions with respect to Iranian accounts other than
blocked accounts, as defined in Sec. 560.322:
(1) The limited maintenance of an Iranian account other than a
blocked account, including only the payment into such account of
interest, cash dividends, and stock dividends; the debiting of service
charges; and the execution of stock splits and dividend reinvestment
plans; and
[[Page 64680]]
(2) At the request of the account party, who may not 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, the closing of Iranian accounts other than blocked
accounts through the one-time liquidation of all assets in the account
at fair market value and the lump sum transfer only to the account
party of all proceeds derived therefrom and all remaining funds in the
account.
Note to paragraphs (a) and (b) of Sec. 560.517: See Sec.
560.547, which authorizes U.S. financial institutions to debit
blocked accounts for normal service charges, and Sec. 560.213,
concerning the obligation to hold blocked funds in interest-bearing
accounts.
(c) Specific licenses may be issued with respect to the operation
of Iranian accounts that constitute accounts of:
(1) Foreign government missions and their personnel in Iran; or
(2) Diplomatic missions of the Government of Iran to international
organizations in the United States or the Iranian Interests Section of
the Embassy of Pakistan in the United States.
Sec. 560.518 Transactions in Iranian-origin and Iranian government
property.
Except for transactions involving 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, and
provided that paragraph (a) of this section does not affect the status
of property blocked pursuant to part 535 or this part or detained or
seized, or subject to detention or seizure, pursuant to this part, the
following transactions are authorized:
(a) All domestic transactions with respect to Iranian-origin goods
located in the United States other than goods blocked pursuant to Sec.
560.211.
(b) Transactions by a United States person with third-country
nationals incidental to the storage and maintenance in third countries
of Iranian-origin goods owned prior to May 7, 1995, by that United
States person or acquired thereafter by that United States person
consistent with the provisions of this part;
(c) Exportation of Iranian-origin household and personal effects
from the United States incident to the relocation of United States
persons outside the United States; and
(d) The use or disposition by a United States person of Iranian-
origin household and personal effects that are located outside the
United States and that have been acquired by the United States person
in transactions not prohibited by part 535 or this part.
Sec. 560.519 Journalistic activities and establishment of news
bureaus in Iran.
(a) Subject to the limitations and conditions set forth in
paragraph (c) of this section, news reporting organizations that are
United States persons, and individuals who are United States persons
regularly employed by a news reporting organization either as
journalists (including photojournalists) or as supporting broadcast or
technical personnel, are authorized to engage in the following
transactions in Iran to the extent such transactions are ordinarily
incident to their journalistic activities in Iran:
(1) Hiring and compensating support staff in Iran (e.g., stringers,
translators, interpreters, camera operators, technical experts,
freelance producers, or drivers), or persons to handle logistics, or
other office personnel as needed;
(2) Leasing or renting office space;
(3) Purchasing, leasing, or renting Iranian-origin goods and
services (e.g., mobile phones and related air time), selling such goods
when no longer needed to persons other than the Government of Iran, or
importing them into the United States;
(4) Renting and using telecommunications facilities in Iran and
paying fees related to the dissemination of information and
transmission of news feeds (e.g., fees for satellite uplink facilities,
live news feeds, taxes);
(5) Exporting and reexporting to Iran, and subsequently reexporting
from Iran, equipment necessary for and ordinarily incident to
journalistic activities, provided such equipment is designated as EAR99
under the Export Administration Regulations, 15 CFR parts 730 through
774 (the ``EAR''), and further provided that such equipment is
reexported from Iran to the United States or a third country when no
longer needed for journalistic activities in Iran; and
(6) Paying for all expenses ordinarily incident to journalistic
activities, including sales or employment taxes to the Government of
Iran.
(b) Subject to the limitations and conditions set forth in
paragraph (c) of this section, news reporting organizations that are
United States persons are authorized to establish and operate news
bureaus in Iran and to engage in the transactions set forth in
paragraph (a) of this section to the extent such transactions are
ordinarily incident to the establishment and operation of a news bureau
in Iran.
(c) The authorizations set forth in paragraphs (a) and (b) of this
section are subject to the following limitations and conditions:
(1) No goods, technology, or software listed on the Commerce
Control List in the EAR, 15 CFR part 774, supplement No. 1 (CCL), or
that requires a license under part 744 of the EAR, or controlled by the
United States Department of State under the International Traffic in
Arms Regulations, 22 CFR parts 120 through 130, may be exported or
reexported to Iran without separate authorization from the Office of
Foreign Assets Control.
Note to paragraph (c)(1) of Sec. 560.519: The Commerce Control
List in the EAR, 15 CFR part 774, supplement No. 1, includes items
such as many laptop computers, personal computers, cell phones,
personal digital assistants and other wireless handheld devices/
blackberries, and other similar items. The exportation or
reexportation of these items to Iran, even on a temporary basis, is
prohibited, unless specifically authorized in a license issued
pursuant to this part in a manner consistent with the Iran-Iraq Arms
Nonproliferation Act of 1992 and other relevant law.
(2) Any United States person exporting or reexporting to Iran EAR99
equipment pursuant to paragraphs (a) or (b) of this section:
(i) Must maintain ownership and control of such equipment at all
times while it is in Iran; and
(ii) Must submit a report to the Licensing Division, Office of
Foreign Assets Control, U.S. Department of the Treasury, 1500
Pennsylvania Avenue NW., Annex, Washington, DC 20220 within 10 business
days of the export or reexport specifying the items exported or
reexported and confirming that they are EAR99, and another report
confirming that such items have been reexported from Iran to the United
States or a third country within 10 business days of the date of
reexportation from Iran.
(3) This section does not authorize the exportation or
reexportation to Iran of any goods, technology, or services that are
not necessary and ordinarily incident to journalistic activities in
Iran or to the establishment and operation of a news bureau in Iran.
(d) For the purposes of this section, the term news reporting
organization means an entity whose primary purpose is the gathering and
dissemination of news to the general public.
Note to Sec. 560.519: For a specific licensing policy
governing the establishment and operation of news bureaus in the
United States by Iranian news organizations, see Sec. 560.549.
[[Page 64681]]
Sec. 560.520 [Reserved]
Sec. 560.521 Diplomatic pouches.
The following transactions are authorized:
(a) The importation into the United States from Iran, or the
exportation from the United States to Iran, of diplomatic pouches and
their contents; and
(b) The exportation, reexportation, sale, or supply, directly or
indirectly, from the United States or by a U.S. person, wherever
located, of any goods or technology to a third-country government, or
to its contractors or agents, for shipment to Iran via a diplomatic
pouch. To the extent necessary, this section also authorizes the
shipment of such goods or technology by the third-country government to
Iran via a diplomatic pouch.
Note to paragraph (b) of Sec. 560.521: The exportation or
reexportation of certain U.S.-origin goods or technology to a third-
country government, or to its contractors or agents, may require
authorization by the U.S. Department of Commerce under the Export
Administration Regulations (15 CFR parts 730 through 774).
Sec. 560.522 Allowable payments for overflights of Iranian airspace.
Payments to Iran of charges for services rendered by the Government
of Iran in connection with the overflight of Iran or emergency landing
in Iran of aircraft owned by a United States person or registered in
the United States are authorized.
Sec. 560.523 Exportation of equipment and services relating to
information and informational materials.
Specific licenses may be issued on a case-by-case basis for the
exportation of equipment and services necessary for the establishment
of news wire feeds or other transmissions of information and
informational materials.
Sec. 560.524 Household goods and personal effects.
(a) The exportation from the United States to Iran of household and
personal effects, including baggage and articles for family use, of
persons departing the United States to relocate in Iran is authorized
provided the articles included in such effects have been actually used
by such persons or by family members accompanying them, are not
intended for any other person or for sale, and are not otherwise
prohibited from exportation. See also Sec. 560.518(c).
(b) The importation of Iranian-origin household and personal
effects, including baggage and articles for family use, of persons
arriving in the United States is authorized; to qualify, articles
included in such effects must have been actually used abroad by such
persons or by other family members from the same foreign household,
must not be intended for any other person or for sale, and must not be
otherwise prohibited from importation. For purposes of this paragraph,
household and personal effects include all articles meeting the
criteria stated in this paragraph regardless of the time elapsed since
the importer's arrival in the United States from Iran.
Sec. 560.525 Provision of certain legal services.
(a) The provision of the following legal services to or on behalf
of 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, or to or on behalf of a person in Iran, or
in circumstances in which the benefit is otherwise received in Iran is
authorized, provided that receipt of payment of professional fees and
reimbursement of incurred expenses are authorized by or pursuant to
paragraph (d) of this section or otherwise authorized pursuant to this
part:
(1) Provision of legal advice and counseling on the requirements of
and compliance with the laws of the United States or any jurisdiction
within the United States, provided that such advice and counseling is
not provided to facilitate transactions in violation of this part;
(2) Representation of persons named as defendants in or otherwise
made a party to domestic United States legal, arbitration, or
administrative proceedings;
(3) Initiation and conduct of domestic United States legal,
arbitration, or administrative proceedings;
(4) Representation of persons before any federal or state agency
with respect to the imposition, administration, or enforcement of
United States sanctions against Iran;
(5) Initiation and conduct of legal proceedings, in the United
States or abroad, including administrative, judicial, and arbitral
proceedings and proceedings before international tribunals (including
the Iran-United States Claims Tribunal in The Hague and the
International Court of Justice):
(i) To resolve disputes between the Government of Iran or an
Iranian national and the United States or a United States national;
(ii) Where the proceeding is contemplated under an international
agreement; or
(iii) Where the proceeding involves the enforcement of awards,
decisions, or orders resulting from legal proceedings within the scope
of paragraph (a)(5)(i) or (a)(5)(ii) of this section, provided that any
transaction, unrelated to the provision of legal services or the
payment therefor, that is necessary or related to the execution of an
award, decision, or order resulting from such legal proceeding, or
otherwise necessary for the conduct of such proceeding, and which would
otherwise be prohibited by this part requires a specific license in
accordance with Sec. Sec. 560.510 and 560.801;
(6) Provision of legal advice and counseling in connection with
settlement or other resolution of matters described in paragraph (a)(5)
of this section; and
(7) Provision of legal services in any other context in which
prevailing United States law requires access to legal counsel at public
expense.
(b) The provision of any other legal services to 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, or to or on behalf of a person in Iran, or in circumstances in
which the benefit is otherwise received in Iran, not otherwise
authorized in this part, requires the issuance of a specific license.
(c) Entry into a settlement agreement or the enforcement of any
lien, judgment, arbitral award, decree, or other order through
execution, garnishment, or other judicial process purporting to
transfer or otherwise alter or affect property or interests in property
blocked pursuant to Sec. 560.211 is prohibited unless specifically
licensed in accordance with Sec. 560.212(e).
(d)(1) All receipts of payment of professional fees and
reimbursement of incurred expenses for the provision of legal services
authorized pursuant to paragraph (a) of this section to or on behalf of
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 must be specifically licensed or otherwise authorized
pursuant to Sec. 560.553 of this part.
(2) All receipts of payment of professional fees and reimbursement
of incurred expenses for the provision of legal services authorized
pursuant to paragraph (a) of this section to or on behalf of a person
in Iran, or in circumstances in which the benefit is otherwise received
in Iran, other than those described in paragraph (d)(1) of
[[Page 64682]]
this section, are authorized, except that nothing in this section
authorizes the debiting of any blocked account or the transfer of any
blocked property.
Sec. 560.526 [Reserved]
Sec. 560.527 Rescheduling existing loans.
Specific licenses may be issued on a case-by-case basis for
rescheduling loans or otherwise extending the maturities of existing
loans, and for charging fees or interest at commercially reasonable
rates, in connection therewith, provided that no new funds or credits
are thereby transferred or extended to Iran or 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.
Sec. 560.528 Aircraft safety.
Specific licenses may be issued on a case-by-case basis for the
exportation or reexportation of goods, services, and technology to
insure the safety of civil aviation and safe operation of U.S.-origin
commercial passenger aircraft.
Sec. 560.529 Bunkering and emergency repairs.
(a) Except as provided in paragraph (b) of this section, goods or
services provided in the United States to a non-Iranian carrier
transporting passengers or goods to or from Iran are permissible if
they are:
(1) Bunkers or bunkering services;
(2) Supplied or performed in the course of emergency repairs; or
(3) Supplied or performed under circumstances which could not be
anticipated prior to the carrier's departure for the United States.
(b) This section does not authorize the provision of goods or
services in connection with the transport of any goods to or 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.
Sec. 560.530 Commercial sales, exportation, and reexportation of
agricultural commodities, medicine, and medical devices.
(a)(1) One-year license requirement. The exportation or
reexportation of the excluded food items specified in paragraph
(a)(2)(iii) of this section, agricultural commodities that do not fall
within the definition of food set forth in paragraph (a)(2)(ii) of this
section, food (as defined in paragraph (a)(2)(ii) of this section)
intended for military or law enforcement purchasers or importers, the
excluded medicines specified in paragraph (a)(3)(iii) of this section,
medicine (as defined in paragraph (e)(2) of this section) intended for
military or law enforcement purchasers or importers, medical devices
(as defined in paragraph (e)(3) of this section) other than basic
medical supplies (as defined in paragraph (a)(3)(ii) of this section),
or basic medical supplies (as defined in paragraph (a)(3)(ii) of this
section) intended for military or law enforcement purchasers or
importers (together, ``agricultural commodities, medicine and medical
devices that are not covered by the general licenses in paragraphs
(a)(2) and (a)(3) of this section'') to the Government of Iran, to any
individual or entity in Iran, or to persons in third countries
purchasing specifically for resale to any of the foregoing, shall only
be made pursuant to a one-year specific license issued by the Office of
Foreign Assets Control for contracts entered into during the one year
period of the license and shipped within the 12-month period beginning
on the date of the signing of the contract. No specific license will be
granted for the exportation or reexportation of the items set forth
above to any entity or individual in Iran promoting international
terrorism, to any narcotics trafficking entity designated pursuant to
Executive Order 12978 of October 21, 1995 (60 FR 54579, October 24,
1995) or the Foreign Narcotics Kingpin Designation Act (21 U.S.C. 1901-
1908), or to any foreign organization, group, or persons subject to any
restriction for its or their involvement in weapons of mass destruction
or missile proliferation. Executory contracts entered into pursuant to
paragraph (b)(2) of this section prior to the issuance of the one-year
license described in this paragraph shall be deemed to have been signed
on the date of issuance of that one-year license (and, therefore, the
exporter is authorized to make shipments under that contract within the
12-month period beginning on the date of issuance of the one-year
license).
(2)(i) General license for the exportation or reexportation of
food. Except as provided in paragraphs (a)(2)(iii) and (a)(2)(iv) of
this section, the exportation or reexportation of food (including bulk
agricultural commodities listed in appendix B to this part) to the
Government of Iran, to any individual or entity in Iran, or to persons
in third countries purchasing specifically for resale to any of the
foregoing, and the conduct of related transactions, including, but not
limited to, the making of shipping and cargo inspection arrangements,
the obtaining of insurance, the arrangement of financing and payment,
shipping of the goods, receipt of payment, and the entry into contracts
(including executory contracts), are hereby authorized, provided that,
unless otherwise authorized by specific license, payment terms and
financing for sales pursuant to this general license are limited to,
and consistent with, those authorized by Sec. 560.532 of this part;
and further provided that all such exports or reexports are shipped
within the 12-month period beginning on the date of the signing of the
contract for export or reexport.
(ii) Definition of Food. For purposes of this general license, the
term food means items that are intended to be consumed by and provide
nutrition to humans or animals in Iran, including vitamins and
minerals, food additives and supplements, and bottled drinking water,
and seeds that germinate into items that are intended to be consumed by
and provide nutrition to humans or animals in Iran. For purposes of
this general license, the term food does not include alcoholic
beverages, cigarettes, gum, or fertilizer.
(iii) Excluded food items. Paragraph (a)(2)(i) of this section does
not authorize the exportation or reexportation of the following food
items: castor beans, castor bean seeds, certified pathogen-free eggs
(unfertilized or fertilized), dried egg albumin, live animals, Rosary/
Jequirity peas, nonfood-grade gelatin powder, and peptones and their
derivatives.
(iv) Excluded persons. Paragraph (a)(2)(i) of this section does not
authorize the exportation or reexportation of food to military or law
enforcement purchasers or importers.
Note to paragraph (a)(2) of Sec. 560.530: Consistent with
section 906(a)(1) of the Trade Sanctions Reform and Export
Enhancement Act of 2000 (22 U.S.C. 7205), each year by the
anniversary of its effective date on October 12, 2011, the Office of
Foreign Assets Control will determine whether to revoke this general
license. Unless revoked, the general license will remain in effect.
(3)(i) General license for the exportation or reexportation of
medicine and basic medical supplies. Except as provided in paragraphs
(a)(3)(iii) and (a)(3)(iv) of this section, the exportation or
reexportation of medicine (as defined in paragraph (e)(2) of this
section) and basic medical supplies (as defined in paragraph (a)(3)(ii)
of this section) to the Government of Iran, to any individual or entity
in Iran, or to persons in third countries purchasing specifically for
resale to any of the foregoing, and the conduct of related
transactions, including, but not limited to, the
[[Page 64683]]
making of shipping and cargo inspection arrangements, the obtaining of
insurance, the arrangement of financing and payment, shipping of the
goods, receipt of payment, and the entry into contracts (including
executory contracts), are hereby authorized, provided that unless
otherwise authorized by specific license, payment terms and financing
for sales pursuant to this general license are limited to, and
consistent with, those authorized by Sec. 560.532 of this part; and
further provided that all such exports or reexports are shipped within
the 12-month period beginning on the date of the signing of the
contract for export or reexport.
(ii) Definition of basic medical supplies. For purposes of this
general license, the term basic medical supplies means those medical
devices, as defined in paragraph (e)(3) of this section, that are
included on the List of Basic Medical Supplies on the Office of Foreign
Assets Control's Web site (www.treasury.gov/ofac) on the Iran Sanctions
page, but does not include replacement parts.
Note to paragraph (a)(3)(ii) of Sec. 560.530: The List of Basic
Medical Supplies is maintained on the Office of Foreign Assets
Control's Web site (www.treasury.gov/ofac) on the Iran Sanctions
page. The list also will be published in the Federal Register, as
will any changes to the list. The List of Basic Medical Supplies
generally contains those medical devices (excluding replacement
parts) for which OFAC previously did not require an Official
Commodity Classification of EAR99 issued by the Department of
Commerce, Bureau of Industry and Security, to be submitted with a
specific license application and which are now generally licensed.
(iii) Excluded medicines. Paragraph (a)(3)(i) of this section does
not authorize the exportation or reexportation of the following
medicines: non-NSAID analgesics, cholinergics, anticholinergics,
opioids, narcotics, benzodiazapenes, and bioactive peptides.
(iv) Excluded persons. Paragraph (a)(3)(i) of this section does not
authorize the exportation or reexportation of medicine or basic medical
supplies to military or law enforcement purchasers or importers.
Note to paragraph (a)(3) of Sec. 560.530: Consistent with
section 906(a)(1) of the Trade Sanctions Reform and Export
Enhancement Act of 2000 (22 U.S.C. 7205), each year by the
anniversary of its effective date on October 22, 2012, the Office of
Foreign Assets Control will determine whether to revoke this general
license. Unless revoked, the general license will remain in effect.
(b) General license for arrangement of exportation and
reexportation of covered products that require a specific license. (1)
With respect to sales pursuant to paragraph (a)(1) of this section, the
making of shipping arrangements, cargo inspections, obtaining of
insurance, and arrangement of financing (consistent with Sec. 560.532)
for the exportation or reexportation of agricultural commodities,
medicine and medical devices not covered by the general licenses in
paragraphs (a)(2) and (a)(3) of this section to the Government of Iran,
to any individual or entity in Iran, or to persons in third countries
purchasing specifically for resale to any of the foregoing, are
authorized.
(2) Entry into executory contracts (including executory pro forma
invoices, agreements in principle, or executory offers capable of
acceptance such as bids in response to public tenders) for the
exportation or reexportation of agricultural commodities, medicine and
medical devices not covered by the general licenses in paragraphs
(a)(2) and (a)(3) of this section to the Government of Iran, to any
individual or entity in Iran, or to persons in third countries
purchasing specifically for resale to any of the foregoing, is
authorized, provided that the performance of an executory contract is
expressly made contingent upon the prior issuance of the one-year
specific license described in paragraph (a)(1) of this section.
(c) Instructions for obtaining one-year licenses. In order to
obtain the one-year specific license described in paragraph (a)(1) of
this section, the exporter must provide to the Office of Foreign Assets
Control:
(1) The applicant's full legal name (and, if the applicant is a
business entity, the state or jurisdiction of incorporation and
principal place of business);
(2) The applicant's mailing and street address (and, so that OFAC
may reach a responsible point of contact, the applicant should also
include the name of the individual(s) responsible for the application
and related commercial transactions, along with their telephone and fax
numbers and, if available, email addresses);
(3) The names, mailing addresses, and, if available, fax and
telephone numbers and email addresses of all parties with an interest
in the transaction. If the goods are being exported or reexported to a
purchasing agent in Iran, the exporter must identify the agent's
principals at the wholesale level for whom the purchase is being made.
If the goods are being exported or reexported to an individual, the
exporter must identify any organizations or entities with which the
individual is affiliated that have an interest in the transaction;
(4) A description of all items to be exported or reexported
pursuant to the requested one-year license, including a statement that
the item is designated as EAR99 and, if necessary, documentation
sufficient to verify that the items to be exported or reexported are
designated as EAR99 and do not fall within any of the limitations
contained in paragraph (d) of this section; and
(5) An Official Commodity Classification of EAR99 issued by the
Department of Commerce, Bureau of Industry and Security (``BIS''),
certifying that the product is designated as EAR99, is required to be
submitted to OFAC with the request for a license authorizing the
exportation or reexportation of all fertilizers, live horses, western
red cedar, and medical devices other than basic medical supplies. See
15 CFR 745.3 for instructions for obtaining an Official Commodity
Classification of EAR99 from BIS.
(d) Limitations. (1) Nothing in this section or in any general or
specific license set forth in or issued pursuant to paragraph (a) of
this section relieves the exporter from compliance with the export
license application requirements of another Federal agency.
(2) Nothing in this section or in any general or specific license
set forth in or issued pursuant to paragraph (a) of this section
authorizes the exportation or reexportation of any agricultural
commodity, medicine, or medical device controlled on the United States
Munitions List established under section 38 of the Arms Export Control
Act (22 U.S.C. 2778); controlled on any control list established under
the Export Administration Act of 1979 or any successor statute (50
U.S.C. App. 2401 et seq.); or used to facilitate the development or
production of a chemical or biological weapon or weapon of mass
destruction.
(3) Nothing in this section or in any general or specific license
set forth in or issued pursuant to paragraph (a) of this section
affects prohibitions on the sale or supply of U.S. technology or
software used to manufacture agricultural commodities, medicine, or
medical devices, such as technology to design or produce
biotechnological items or medical devices.
(4) Nothing in this section or in any general or specific license
set forth in or issued pursuant to paragraph (a) of this section
affects U.S. nonproliferation export controls, including the end-user
and end-use controls maintained under Part 744 of the Export
Administration Regulations, 15 CFR part 744.
[[Page 64684]]
(5) Nothing in this section authorizes any transaction or dealing
with a person whose property and interests in property are blocked
under, or who is designated or otherwise subject to any sanctions
under, the terrorism, proliferation of weapons of mass destruction, or
narcotics trafficking programs administered by OFAC, 31 CFR parts 536,
544, 594, 595, 597, and 598, or with any foreign organization, group,
or person subject to any restriction for its involvement in weapons of
mass destruction or missile proliferation, or involving property
blocked pursuant to this chapter or any other activity prohibited by
this chapter not otherwise authorized in or pursuant to this part.
(e) Covered items. For the purposes of this part, agricultural
commodities, medicine, and medical devices are defined below.
(1) Agricultural commodities. For the purposes of this part,
agricultural commodities are:
(i) Products not listed on the Commerce Control List in the Export
Administration Regulations, 15 CFR part 774, supplement no. 1, that
fall within the term ``agricultural commodity'' as defined in section
102 of the Agricultural Trade Act of 1978 (7 U.S.C. 5602); and
(ii) Products not listed on the Commerce Control List in the Export
Administration Regulations, 15 CFR part 774, supplement no. 1, that are
intended for ultimate use in Iran as:
(A) Food for humans (including raw, processed, and packaged foods;
live animals; vitamins and minerals; food additives or supplements; and
bottled drinking water) or animals (including animal feeds);
(B) Seeds for food crops;
(C) Fertilizers or organic fertilizers; or
(D) Reproductive materials (such as live animals, fertilized eggs,
embryos, and semen) for the production of food animals.
(2) Medicine. For the purposes of this part, the term medicine has
the same meaning given the term ``drug'' in section 201 of the Federal
Food, Drug, and Cosmetic Act (21 U.S.C. 321) but does not include any
item listed on the Commerce Control List in the Export Administration
Regulations, 15 CFR part 774, supplement no. 1 (excluding items
classified as EAR99).
Note to Sec. 560.530(e)(2): The Department of Commerce's Bureau
of Industry and Security provides a list on its Web site of
medicines that are not designated as EAR99 and therefore not
eligible for any general or specific license under this section.
(3) Medical device. For the purposes of this part, the term medical
device has the meaning given the term ``device'' in section 201 of the
Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321) but does not
include any item listed on the Commerce Control List in the Export
Administration Regulations, 15 CFR part 774, supplement no. 1
(excluding items designated as EAR99).
(f) Excluded items. (1) For the purposes of this part, agricultural
commodities do not include furniture made from wood; clothing
manufactured from plant or animal materials; agricultural equipment
(whether hand tools or motorized equipment); pesticides, insecticides,
or herbicides; or cosmetics (unless derived entirely from plant
materials).
(2) For the purposes of this part, the term medicine does not
include cosmetics.
Sec. 560.531 [Reserved]
Sec. 560.532 Payment for and financing of exports and reexports of
agricultural commodities, medicine, and medical devices.
(a) General license for payment terms. The following payment terms
are authorized for sales pursuant to Sec. 560.530(a):
(1) Payment of cash in advance;
(2) Sales on open account, provided that the account receivable may
not be transferred by the person extending the credit;
(3) Financing by third-country financial institutions that are not
United States persons, Iranian financial institutions, or the
Government of Iran. Such financing may be confirmed or advised by U.S.
financial institutions; or
(4) Letter of credit issued by an Iranian financial institution
whose property and interests in property are blocked solely pursuant to
this part. Such letter of credit must be initially advised, confirmed
or otherwise dealt in by a third-country financial institution that is
not a United States person, an Iranian financial institution, or the
Government of Iran before it is advised, confirmed or dealt in by a
U.S. financial institution.
(b) Specific licenses for alternate payment terms. Specific
licenses may be issued on a case-by-case basis for payment terms and
trade financing not authorized by the general license in paragraph (a)
of this section for sales pursuant to Sec. 560.530(a).
(c)(1) No debits to blocked accounts. Nothing in this section
authorizes payment terms or trade financing involving a debit to an
account blocked pursuant to this part.
(2) No debits or credits to Iranian accounts on the books of U.S.
depository institutions. Nothing in this section authorizes payment
terms or trade financing involving debits or credits to Iranian
accounts, as defined in Sec. 560.320.
(d) Notwithstanding any other provision of this part, no commercial
exportation to Iran may be made with United States Government
assistance, including United States foreign assistance, United States
export assistance, and any United States credit or guarantees absent a
Presidential waiver.
Sec. 560.533 Brokering sales of agricultural commodities, medicine,
and medical devices.
(a) General license for brokering sales by U.S. persons. United
States persons are authorized to provide brokerage services on behalf
of U.S. persons for the sale and exportation or reexportation by United
States persons of agricultural commodities, medicine, and medical
devices, provided that the sale and exportation or reexportation is
authorized, as applicable, by a one-year specific license issued
pursuant to paragraph (a)(1) of Sec. 560.530 or by one of the general
licenses set forth in paragraphs (a)(2) and (a)(3) of Sec. 560.530.
(b) Specific licensing for brokering sales by non-U.S. persons of
bulk agricultural commodities. Specific licenses may be issued on a
case-by-case basis to permit United States persons to provide brokerage
services on behalf of non-United States, non-Iranian persons for the
sale and exportation or reexportation of bulk agricultural commodities
to the Government of Iran, entities in Iran or individuals in Iran.
Specific licenses issued pursuant to this section will authorize the
brokering only of sales that:
(1) Are limited to the bulk agricultural commodities listed in
appendix B to this part 560; and
(2) Are to purchasers permitted pursuant to Sec. 560.530.
Note to paragraph (b)(2) of Sec. 560.533: Requests for specific
licenses to provide brokerage services under this paragraph must
include all of the information described in Sec. 560.530(c).
(c) No debits or credits to Iranian accounts on the books of U.S.
depository institutions. Payment for any brokerage fee earned pursuant
to this section may not involve debits or credits to Iranian accounts,
as defined in Sec. 560.320.
(d) Recordkeeping and reporting requirements. Attention is drawn to
the recordkeeping, retention, and reporting requirements of Sec. Sec.
501.601 and 501.602 of this chapter.
[[Page 64685]]
Sec. Sec. 560.534-560.537 [Reserved]
Sec. 560.538 Authorized transactions necessary and ordinarily
incident to publishing.
(a) To the extent that such activities are not exempt from this
part, and subject to the restrictions set forth in paragraphs (b)
through (d) of this section, U.S. persons are authorized to engage in
all transactions necessary and ordinarily incident to the publishing
and marketing of manuscripts, books, journals, and newspapers in paper
or electronic format (collectively, ``written publications''). This
section does not apply if the parties to the transactions described in
this paragraph include the Government of Iran. For the purposes of this
section, the term ``Government of Iran'' includes the state and the
Government of Iran, as well as any political subdivision, agency, or
instrumentality thereof, which includes the Central Bank of Iran, and
any person acting or purporting to act directly or indirectly on behalf
of any of the foregoing with respect to the transactions described in
this paragraph. For the purposes of this section, the term ``Government
of Iran'' does not include any academic and research institutions and
their personnel. Pursuant to this section, the following activities are
authorized, provided that U.S. persons ensure that they are not
engaging, without separate authorization, in the activities identified
in paragraphs (b) through (d) of this section:
(1) Commissioning and making advance payments for identifiable
written publications not yet in existence, to the extent consistent
with industry practice;
(2) Collaborating on the creation and enhancement of written
publications;
(3)(i) Augmenting written publications through the addition of
items such as photographs, artwork, translation, explanatory text, and,
for a written publication in electronic format, the addition of
embedded software necessary for reading, browsing, navigating, or
searching the written publication; and
(ii) Exporting embedded software necessary for reading, browsing,
navigating, or searching a written publication in electronic format,
provided that the software is designated as ``EAR99'' under the Export
Administration Regulations, 15 CFR parts 730 through 774 (the ``EAR''),
or is not subject to the EAR;
(4) Substantive editing of written publications;
(5) Payment of royalties for written publications;
(6) Creating or undertaking a marketing campaign to promote a
written publication; and
(7) Other transactions necessary and ordinarily incident to the
publishing and marketing of written publications as described in this
paragraph (a).
(b) This section does not authorize transactions involving the
provision of goods or services not necessary and ordinarily incident to
the publishing and marketing of written publications as described in
paragraph (a) of this section. For example, this section does not
authorize U.S. persons:
(1) To provide or receive individualized or customized services
(including, but not limited to, accounting, legal, design, or
consulting services), other than those necessary and ordinarily
incident to the publishing and marketing of written publications, even
though such individualized or customized services are delivered through
the use of information or informational materials;
(2) To create or undertake for any person a marketing campaign with
respect to any service or product other than a written publication, or
to create or undertake a marketing campaign of any kind for the benefit
of the Government of Iran;
(3) To engage in the exportation or importation of goods to or from
Iran other than the exportation of embedded software described in
paragraph (a)(3)(ii) of this section; or
(4) To operate a publishing house, sales outlet, or other office in
Iran.
Note to paragraph (b) of Sec. 560.538: The importation from
Iran and the exportation to Iran of information or informational
materials, as defined in Sec. 560.315, whether commercial or
otherwise, regardless of format or medium of transmission, are
exempt from the prohibitions and regulations of this part. See Sec.
560.210(c).
(c) This section does not authorize U.S. persons to engage the
services of publishing houses or translators in Iran unless such
activity is primarily for the dissemination of written publications in
Iran.
(d) This section does not authorize:
(1) The exportation from or importation into the United States of
services for the development, production, or design of software;
(2) Transactions for the development, production, design, or
marketing of technology specifically controlled by the International
Traffic in Arms Regulations, 22 CFR parts 120 through 130 (the
``ITAR''), the EAR, or the Department of Energy Regulations set forth
at 10 CFR part 810;
(3) The exportation of information or technology subject to the
authorization requirements of 10 CFR part 810, or Restricted Data as
defined in section 11 y. of the Atomic Energy Act of 1954, as amended,
or of other information, data, or technology the release of which is
controlled under the Atomic Energy Act and regulations therein;
(4) The exportation of any item (including information) subject to
the EAR where a U.S. person knows or has reason to know that the item
will be used, directly or indirectly, with respect to certain nuclear,
missile, chemical, or biological weapons or nuclear-maritime end-uses
as set forth in part 744 of the EAR. In addition, U.S. persons are
precluded from exporting any item subject to the EAR to certain
restricted end-users, as set forth in part 744 of the EAR, as well as
certain persons whose export privileges have been denied pursuant to
parts 764 or 766 of the EAR, without authorization from the Department
of Commerce; or
(5) The exportation of information subject to licensing
requirements under the ITAR or exchanges of information that are
subject to regulation by other government agencies.
Sec. 560.539 Official activities of certain international
organizations.
(a) General license. Except as provided in paragraph (b) of this
section, all transactions otherwise prohibited by this part that are
for the conduct of the official business of the United Nations, the
World Bank, the International Monetary Fund, the International Atomic
Energy Agency, the International Labor Organization, or the World
Health Organization by employees, contractors, or grantees thereof are
authorized. Authorized transactions include, but are not limited to:
(1) The provision of services involving Iran necessary for carrying
out the official business;
(2) Purchasing Iranian-origin goods and services for use in
carrying out the official business;
(3) Leasing office space and securing related goods and services;
(4) Funds transfers to or from accounts of the international
organizations covered in this paragraph, provided that funds transfers
to or from Iran are not routed through an account of an Iranian bank on
the books of a U.S. financial institution; and
(5) The operation of accounts for employees, contractors, and
grantees located in Iran who are described in this paragraph.
Transactions conducted through these accounts must be solely for the
employee's, contractor's, or grantee's personal use and not for any
commercial purposes in or involving
[[Page 64686]]
Iran. Any funds transfers to or from an Iranian bank must be routed
through a third-country bank that is not a U.S. person.
(b) Limitations. This section does not authorize:
(1) The exportation from the United States to Iran of any goods or
technology listed on the Commerce Control List in the Export
Administration Regulations, 15 CFR part 774, supplement No. 1 (CCL);
(2) The reexportation to Iran of any U.S.-origin goods or
technology listed on the CCL; or
(3) The exportation or reexportation from the United States or by a
U.S. person, wherever located, to Iran of any services not necessary
and ordinarily incident to the official business in Iran. Such
transactions require separate authorization from OFAC.
Note to paragraph (b) of Sec. 560.539: The CCL includes items
such as many laptop computers, personal computers, cell phones,
personal digital assistants and other wireless handheld devices/
blackberries, and other similar items. The exportation of these
items to Iran, even on a temporary basis, is prohibited, unless
specifically authorized in a license issued pursuant to this part in
a manner consistent with the Iran-Iraq Arms Nonproliferation Act of
1992 and other relevant law.
Note to Sec. 560.539: The general license set forth in this
section does not relieve any persons authorized thereunder from
compliance with any other U.S. legal requirements applicable to the
transactions authorized pursuant to paragraph (a) of this section.
Sec. 560.540 Exportation of certain services and software incident to
Internet-based communications.
(a) To the extent that such transactions are not exempt from the
prohibitions of this part and subject to the restrictions set forth in
paragraph (b) of this section, the following transactions are
authorized:
(1) The exportation from the United States or by U.S. persons,
wherever located, to persons in Iran of services incident to the
exchange of personal communications over the Internet, such as instant
messaging, chat and email, social networking, sharing of photos and
movies, web browsing, and blogging, provided that such services are
publicly available at no cost to the user.
(2) The exportation from the United States or by U.S. persons,
wherever located, to persons in Iran of software necessary to enable
the services described in paragraph (a)(1) of this section, provided
that such software is designated as EAR99 under the Export
Administration Regulations, 15 CFR parts 730 through 774 (the ``EAR''),
is not subject to the EAR, or is classified by the U.S. Department of
Commerce (``Commerce'') as mass market software under export control
classification number (``ECCN'') 5D992 of the EAR, and provided further
that such software is publicly available at no cost to the user.
(b) This section does not authorize:
(1) The direct or indirect exportation of services or software with
knowledge or reason to know that such services or software are intended
for the Government of Iran;
(2) The direct or indirect exportation of any goods or technology
listed on the Commerce Control List in the EAR, 15 CFR part 774,
supplement No. 1 (``CCL''), except for software necessary to enable the
services described in paragraph (a)(1) of this section that is
classified by Commerce as mass market software under ECCN 5D992 of the
EAR;
(3) The direct or indirect exportation of Internet connectivity
services or telecommunications transmission facilities (such as
satellite or terrestrial network connectivity); or
(4) The direct or indirect exportation of web-hosting services that
are for purposes other than personal communications (e.g., web-hosting
services for commercial endeavors) or of domain name registration
services.
(c) Specific licenses may be issued on a case-by-case basis for the
exportation of other, including fee-based, services and software
incident to the sharing of information over the Internet, provided the
software is designated as EAR99, is not subject to the EAR, or is
classified by Commerce as mass market software under ECCN 5D992 of the
EAR.
Sec. 560.541 Third-country diplomatic and consular funds transfers.
United States depository institutions and United States registered
brokers or dealers in securities are authorized to process funds
transfers, in a manner consistent with Sec. 560.516, for the operating
expenses or other official business of third-country diplomatic or
consular missions in Iran.
Sec. 560.542 Importation and exportation of human remains for burial,
cremation, or interment authorized.
(a) The importation into the United States of human remains for
burial, cremation, or interment, as well as of coffins or other
receptacles containing such human remains, from Iran is authorized.
(b) The importation into the United States for non-commercial
purposes of finished tombstones or grave markers of Iranian origin is
authorized.
(c) The direct or indirect exportation from the United States, or
by a United States person, wherever located, of human remains for
burial, cremation, or interment, as well as of coffins or other
receptacles containing such human remains, to Iran is authorized.
(d) This section does not authorize the importation into the United
States of Iranian-origin cultural property or other items of
archaeological, historical, or rare scientific importance.
Sec. 560.543 Sale of certain real property in Iran and transfer of
related funds to the United States.
(a) Individuals who are U.S. persons are authorized to engage in
transactions necessary and ordinarily incident to the sale of real
property in Iran and to transfer the proceeds to the United States,
provided that such real property was either acquired before the
individual became a U.S. person, or inherited from persons in Iran.
Authorized transactions include, but are not limited to, engaging the
services of any persons in Iran necessary for the sale, such as an
attorney, funds agent, and/or real estate broker.
(b) This section does not authorize:
(1) The wind-down of commercial enterprises in Iran;
(2) The re-investment in Iran of the proceeds from the real
property sales authorized in paragraph (a) of this section; or
(3) The exportation or reexportation to Iran of any goods
(including software) or technology.
Sec. 560.544 Certain educational activities by U.S. persons in third
countries authorized.
(a) Subject to the restriction set forth in paragraph (c) of this
section, accredited undergraduate degree-granting academic institutions
organized under the laws of the United States or any jurisdiction
within the United States or located in the United States (``U.S.
undergraduate institutions'') with undergraduate educational programs
or undergraduate exchange programs in countries other than the United
States or Iran are authorized to engage in the following activities
with respect to such programs in the humanities, social sciences, law,
and business:
(1) Recruit, hire, and employ faculty and staff who are ordinarily
resident in Iran;
(2) Recruit, enroll, and educate students who are ordinarily
resident in Iran;
(3) Enter into and perform exchange agreements with Iranian
universities;
(4) Provide scholarships to students ordinarily resident in Iran;
and
[[Page 64687]]
(5) Recruit individuals ordinarily resident in Iran, such as
scholars, artists, performers, speakers, alumni, and students, to
participate in events, such as conferences, lectures, film series,
research workshops, exhibitions, theatrical and musical performances,
and continuing education courses. U.S. undergraduate institutions are
authorized to provide compensation, including honoraria, to such
individuals.
(b) Subject to the restriction set forth in paragraph (c) of this
section:
(1) Paragraph (a)(2) of this section authorizes the release of
technology or software to students ordinarily resident in Iran,
provided that all of the following requirements are met:
(i) Such release is ordinarily incident and necessary to the
undergraduate educational program or the undergraduate exchange program
at the U.S. undergraduate institution in which the student is enrolled;
(ii) The technology or software being released is designated as
EAR99 under the Export Administration Regulations, 15 CFR parts 730
through 774 (the ``EAR''), or constitutes Educational Information not
subject to the EAR, as set forth in 15 CFR 734.9;
(iii) The release does not otherwise require a license from the
Department of Commerce; and
(iv) The student to whom the release is made is not enrolled in the
undergraduate educational program, or participating in the
undergraduate exchange program, as an agent, employee, or contractor of
the Government of Iran or a business entity or other organization in
Iran.
(2) This section authorizes enrollment in undergraduate courses in
math, sciences, and engineering that are required or electives for
undergraduate programs in the humanities, social sciences, law, or
business provided the following conditions are met:
(i) The undergraduate courses are required for the completion of
the humanities, social sciences, law, or business program and are for
``introductory,'' non-major, freshman or sophomore equivalent courses
only; or
(ii) The undergraduate courses are required for the completion of
the humanities, social sciences, law, or business program and are math-
related accounting or economics classes at any undergraduate level, not
to include courses allowing for any post-graduate work.
(c) This section does not authorize the exportation or
reexportation to Iran or the Government of Iran of any goods (including
software) or technology, including any release of technology or
software described in Sec. 560.418 of this part, except as expressly
authorized in paragraph (b) of this section.
(d) Specific licenses may be issued on a case-by-case basis
authorizing accredited graduate degree-granting academic institutions
organized under the laws of the United States or any jurisdiction
within the United States or located in the United States with graduate
educational programs or graduate exchange programs in third countries
to recruit, hire, and employ faculty and staff who are ordinarily
resident in Iran for such third-country graduate educational programs
in the humanities, social sciences, law, and business or graduate
exchange programs in the humanities, social sciences, law, and
business, and to recruit, enroll, and educate students who are
ordinarily resident in Iran in such third-country graduate educational
programs in the humanities, social sciences, law, and business or
graduate exchange programs in the humanities, social sciences, law, and
business.
Sec. 560.545 Democracy and human rights in Iran and academic and
cultural exchange programs.
(a) Specific licenses may be issued on a case-by-case basis to
authorize nongovernmental organizations and other entities organized
under the laws of the United States or any jurisdiction within the
United States or located in the United States to engage in the
following projects or activities in or related to Iran that are
designed to directly benefit the Iranian people:
(1) Projects, including conferences and training, to support human
rights, democratic freedoms, and democratic institutions and to meet
basic human needs; and
(2) The establishment or support of independent civic
organizations.
(b) Specific licenses may be issued on a case-by-case basis to
authorize U.S. persons to engage in the following projects or
activities in or related to Iran that are designed to directly benefit
the Iranian people:
(1) The provision of donated professional medical services;
(2) Certain targeted educational, cultural, and sports exchange
programs, provided such programs are not in furtherance of Iranian
military, industrial, or technological infrastructure or potential;
(3) Environmental projects, provided such projects are not in
furtherance of Iranian military or industrial infrastructure or
potential; and
(4) Projects, including exchanges and technical training, to
improve the flow of public information through independent media
available to the Iranian public.
(c) Specific licenses issued pursuant to this section generally
will not authorize the exportation or reexportation to Iran of goods
(including software) and technology listed on the Commerce Control List
in the Export Administration Regulations, 15 CFR part 774, supplement
No. 1 (CCL).
Note 1 to Sec. 560.545: The CCL includes items such as many
laptop computers, personal computers, cell phones, personal digital
assistants and other wireless handheld devices/blackberries, and
other similar items. The exportation or reexportation of these items
to Iran, even on a temporary basis, is prohibited, unless
specifically authorized in a license issued pursuant to this part in
a manner consistent with the Iran-Iraq Arms Nonproliferation Act of
1992 and other relevant law.
Sec. 560.546 Payments and transfers to blocked accounts in U.S.
financial institutions.
Any payment of funds or transfer of credit in which 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 has any interest that comes within the possession or control of
a U.S. financial institution must be blocked in an account on the books
of that financial institution. A transfer of funds or credit by a U.S.
financial institution between blocked accounts in its branches or
offices is authorized, provided that no transfer is made from an
account within the United States to an account held outside the United
States, and further provided that a transfer from a blocked account may
be made only to another blocked account held in the same name.
Note to Sec. 560.546: See Sec. 501.603 of this chapter for
mandatory reporting requirements regarding financial transfers. See
also Sec. 560.213 of this part concerning the obligation to hold
blocked funds in interest-bearing accounts.
Sec. 560.547 Entries in certain accounts for normal service charges
authorized.
(a) A U.S. financial institution is authorized to debit any blocked
account held at that financial institution in payment or reimbursement
for normal service charges owed it by the owner of that blocked
account.
(b) As used in this section, the term normal service charges shall
include charges in payment or reimbursement for interest due; cable,
telegraph, Internet, or telephone charges; postage costs; custody fees;
small adjustment charges to correct bookkeeping errors; and, but not by
way of limitation, minimum balance charges, notary and
[[Page 64688]]
protest fees, and charges for reference books, photocopies, credit
reports, transcripts of statements, registered mail, insurance,
stationery and supplies, and other similar items.
Note to Sec. 560.547: See Sec. 560.517, which authorizes U.S.
depository institutions and U.S. registered brokers or dealers in
securities to provide and be compensated for services with respect
to the limited maintenance of Iranian accounts other than blocked
accounts, including the payment of interest and dividends and the
debiting of service charges.
Sec. 560.548 Investment and reinvestment of certain funds.
Subject to the requirements of Sec. 560.213, U.S. financial
institutions are authorized to invest and reinvest assets blocked
pursuant to Sec. 560.211, subject to the following conditions:
(a) The assets representing such investments and reinvestments are
credited to a blocked account or subaccount that is held in the same
name at the same U.S. financial institution, or within the possession
or control of a U.S. person, but funds shall not be transferred outside
the United States for this purpose;
(b) The proceeds of such investments and reinvestments shall not be
credited to a blocked account or subaccount under any name or
designation that differs from the name or designation of the specific
blocked account or subaccount in which such funds or securities were
held; and
(c) No immediate financial or economic benefit accrues (e.g.,
through pledging or other use) to a person whose property and interests
in property are blocked pursuant to Sec. 560.211.
Sec. 560.549 Policy governing Iranian news organizations' offices in
the United States.
Specific licenses may be issued on a case-by-case basis authorizing
transactions necessary for the establishment and operation of news
bureaus in the United States by Iranian organizations whose primary
purpose is the gathering and dissemination of news to the general
public.
Sec. 560.550 Certain noncommercial, personal remittances to or from
Iran authorized.
(a) In cases in which the transfer involves a noncommercial,
personal remittance, the transfer of funds to or from Iran or for or on
behalf of an individual ordinarily resident in Iran, other than an
individual whose property and interests in property are blocked
pursuant to Sec. 560.211, is authorized, provided that the transfer is
processed by a United States depository institution or a United States
registered broker or dealer in securities and not by any other U.S.
person; does not involve debiting or crediting an Iranian account; and
is not by, to, or through the Government of Iran, as defined in Sec.
560.304.
(b) Noncommercial, personal remittances do not include charitable
donations to or for the benefit of an entity or funds transfers for use
in supporting or operating a business, including a family-owned
enterprise.
Note to paragraph (b) of Sec. 560.550: Charitable donations of
funds to or for the benefit of an entity in Iran require a specific
license.
(c) The transferring institutions identified in paragraph (a) of
this section may rely on the originator of a funds transfer with regard
to compliance with paragraph (a) of this section, provided that the
transferring institution does not know or have reason to know that the
funds transfer is not in compliance with paragraph (a) of this section.
(d) An individual who is a U.S. person is authorized to carry funds
as a noncommercial, personal remittance, as described in paragraphs (a)
and (b) of this section, to an individual in Iran or ordinarily
resident in Iran, other than an individual whose property and interests
in property are blocked pursuant to Sec. 560.211, provided that the
individual who is a U.S. person is carrying the funds on his or her
behalf, but not on behalf of another person.
Sec. 560.551 Student loan payments from persons in Iran authorized.
United States depository institutions and private loan companies
are authorized to engage in all transactions necessary to collect,
accept, and process student loan payments from persons in Iran or
ordinarily resident in Iran.
Sec. 560.552 Transactions related to U.S. citizens residing in Iran.
(a) Except as provided by paragraph (b) of this section, U.S.
persons are authorized to engage in transactions in Iran ordinarily
incident to the routine and necessary maintenance and other personal
living expenses of U.S. citizens who reside on a permanent basis in
Iran.
(b) Nothing in this section authorizes transactions related to
employment by U.S. persons in Iran.
Sec. 560.553 Payments from funds originating outside the United
States authorized.
Effective October 22, 2012, receipts of payment of professional
fees and reimbursement of incurred expenses for the provision of legal
services authorized pursuant to Sec. 560.525(a) to or on behalf of 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 are authorized from funds originating outside the United
States, provided that:
(a) Prior to receiving payment for legal services authorized
pursuant to Sec. 560.525(a) rendered to 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, the U.S.
person that is an attorney, law firm, or legal services organization
provides to the Office of Foreign Assets Control a copy of a letter of
engagement or a letter of intent to engage specifying the services to
be performed and signed by the individual to whom such services are to
be provided or, where services are to be provided to an entity, by a
legal representative of the entity. The copy of a letter of engagement
or a letter of intent to engage, accompanied by correspondence
referencing this paragraph (a), is to be mailed to: Licensing Division,
Office of Foreign Assets Control, U.S. Department of the Treasury, 1500
Pennsylvania Avenue NW., Annex, Washington, DC 20220;
(b) The funds received by U.S. persons as payment of professional
fees and reimbursement of incurred expenses for the provision of legal
services authorized pursuant to Sec. 560.525(a) must not originate
from:
(1) A source within the United States;
(2) Any source, wherever located, within the possession or control
of a U.S. person; or
(3) Any individual or entity, other than the person on whose behalf
the legal services authorized pursuant to Sec. 560.525(a) are to be
provided, whose property and interests in property are blocked pursuant
to any part of this chapter or any Executive order; and
Note to paragraph (b) of Sec. 560.553: This paragraph
authorizes the blocked person on whose behalf the legal services
authorized pursuant to Sec. 560.525(a) are to be provided to make
payments for authorized legal services using funds originating
outside the United States that were not previously blocked. Nothing
in this paragraph authorizes payments for legal services using funds
in which any other person whose property and interests in property
are blocked pursuant to any part of this chapter or any Executive
order holds an interest.
(c) Reports. (1) U.S. persons who receive payments pursuant to this
section in connection with legal services authorized pursuant to Sec.
560.525(a) must submit quarterly reports providing information on the
funds received, no later than 30 days following the end of the calendar
quarter during which the
[[Page 64689]]
payments were received. Such reports shall specify:
(i) The individual or entity from whom the funds originated and the
amount of funds received; and
(ii) If applicable:
(A) The names of any individuals or entities providing related
services to the U.S. person receiving payment in connection with
authorized legal services, such as private investigators or expert
witnesses;
(B) A general description of the services provided; and
(C) The amount of funds paid in connection with such services;
(2) In the event that no transactions occur or no funds are
received during the reporting period, a statement is to be filed to
that effect; and
(3) The reports, which must reference this section, are to be
mailed to: Licensing Division, Office of Foreign Assets Control, U.S.
Department of the Treasury, 1500 Pennsylvania Avenue NW., Annex,
Washington, DC 20220.
Note 1 to Sec. 560.553: U.S. persons who receive payments in
connection with legal services authorized pursuant to Sec.
560.525(a) do not need to obtain specific authorization to contract
for related services that are ordinarily incident to the provision
of those legal services, such as those provided by private
investigators or expert witnesses, or to pay for such services.
Additionally, U.S. persons do not need to obtain specific
authorization to provide related services that are ordinarily
incident to the provision of legal services authorized pursuant to
Sec. 560.525(a).
Note 2 to Sec. 560.553: Any payment authorized in or pursuant
to this section that is routed through the U.S. financial system
should reference this Sec. 560.553 to avoid the blocking of the
transfer.
Note 3 to Sec. 560.553: Nothing in this section authorizes the
transfer of any blocked property, the debiting of any blocked
account, the entry of any judgment or order that effects a transfer
of blocked property, or the execution of any judgment against
property blocked pursuant to any part of this chapter or any
Executive order.
Sec. 560.554 Importation and exportation of services related to
conferences in the United States or third countries authorized.
(a) Subject to the restrictions in paragraph (c) of this section,
the importation of Iranian-origin services into the United States or
other dealing in such services and the exportation, reexportation,
sale, or supply of services from the United States or by a U.S. person
are authorized where such services are performed or provided in the
United States by or for a person who is ordinarily resident in Iran,
other than 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, for the purpose of, or which directly relate
to, participating in a public conference, performance, exhibition or
similar event, and such services are consistent with that purpose.
(b) To the extent not otherwise exempt from the prohibitions of
this part and subject to the restrictions in paragraph (c) of this
section, the exportation, reexportation, sale, or supply of services
directly related to the sponsorship by a U.S. person of a public
conference or other similar public event in a third country that is
attended by persons who are ordinarily resident in Iran, other than 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, is authorized, provided that attendance and
participation at the conference or other similar public event is open
for the public and that the conference or other similar event is not
tailored in whole or in part to or for Iran or persons who are
ordinarily resident in Iran.
(c) This section does not authorize:
(1) Any release of technology or software to a person who is
ordinarily resident in Iran; and
(2) The exportation, reexportation, sale or supply of services, or
the importation of Iranian-origin services or other dealing in such
services, related to the petroleum or petrochemical industries, energy
development, crude oil or natural gas, pipelines, or the oil services
industry.
Subpart F--Reports
Sec. 560.601 Records and reports.
For provisions relating to required records and reports, see part
501, subpart C, of this chapter. Recordkeeping and reporting
requirements imposed by part 501 of this chapter with respect to the
prohibitions contained in this part are considered requirements arising
pursuant to this part.
Sec. Sec. 560.602-560.603 [Reserved]
Subpart G--Penalties
Sec. 560.701 Penalties.
(a) Attention is directed to section 206 of the International
Emergency Economic Powers Act (50 U.S.C. 1705) (``IEEPA''), which is
applicable to violations of the provisions of any license, ruling,
regulation, order, directive, or instruction issued by or pursuant to
the direction or authorization of the Secretary of the Treasury
pursuant to this part or otherwise under IEEPA.
(1) A civil penalty not to exceed the amount set forth in section
206 of IEEPA may be imposed on any person who violates, attempts to
violate, conspires to violate, or causes a violation of any license,
order, regulation, or prohibition issued under IEEPA.
Note to paragraph (a)(1) of Sec. 560.701: As of the date of
publication in the Federal Register of the final rule amending and
reissuing this part (October 22, 2012), IEEPA provides for a maximum
civil penalty not to exceed the greater of $250,000 or an amount
that is twice the amount of the transaction that is the basis of the
violation with respect to which the penalty is imposed.
(2) A person who willfully commits, willfully attempts to commit,
or willfully conspires to commit, or aids or abets in the commission of
a violation of any license, order, regulation, or prohibition may, upon
conviction, be fined not more than $1,000,000, or if a natural person,
be imprisoned for not more than 20 years, or both.
(b) Adjustments to penalty amounts. (1) The civil penalties
provided in IEEPA are subject to adjustment pursuant to the Federal
Civil Penalties Inflation Adjustment Act of 1990 (Pub. L. 101-410, as
amended, 28 U.S.C. 2461 note).
(2) The criminal penalties provided in IEEPA are subject to
adjustment pursuant to 18 U.S.C. 3571.
(c) Attention is also directed to 18 U.S.C. 1001, which provides
that whoever, in any matter within the jurisdiction of the executive,
legislative, or judicial branch of the Government of the United States,
knowingly and willfully falsifies, conceals, or covers up by any trick,
scheme, or device a material fact, or makes any materially false,
fictitious, or fraudulent statement or representation, or makes or uses
any false writing or document knowing the same to contain any
materially false, fictitious, or fraudulent statement or entry shall be
fined under title 18, United States Code, or imprisoned, or both.
(d) Attention is directed to 18 U.S.C. 2332d, as added by Public
Law 104-132, section 321, which provides that, except as provided in
regulations issued by the Secretary of the Treasury, in consultation
with the Secretary of State, a U.S. person, knowing or having
reasonable cause to know that a country is designated under section
6(j) of the Export Administration Act, 50 U.S.C. App. 2405, as a
country supporting international terrorism, engages in a financial
transaction with the government of that country, shall be
[[Page 64690]]
fined under title 18, United States Code, or imprisoned for not more
than 10 years, or both.
(e) Violations of this part may also be subject to relevant
provisions of Customs laws and other applicable laws.
Sec. 560.702 Detention of shipments.
Import shipments into the United States of Iranian-origin goods in
violation of Sec. 560.201 and export shipments from the United States
of goods destined for Iran in violation of Sec. 560.204 shall be
detained. No such import, export, or reexport will be permitted to
proceed, except as specifically authorized by or on behalf of the
Secretary of the Treasury. Unless licensed, such shipments are subject
to penalty or seizure and forfeiture action, under the customs laws or
other applicable provisions of law, depending on the circumstances.
Sec. 560.703 Pre-Penalty Notice; settlement.
(a) When required. If the Office of Foreign Assets Control has
reason to believe that there has occurred a violation of any provision
of this part or a violation of the provisions of any license, ruling,
regulation, order, direction, or instruction issued by or pursuant to
the direction or authorization of the Secretary of the Treasury
pursuant to this part or otherwise under IEEPA and determines that a
civil monetary penalty is warranted, the Office of Foreign Assets
Control will issue a Pre-Penalty Notice informing the alleged violator
of the agency's intent to impose a monetary penalty. A Pre-Penalty
Notice shall be in writing. The Pre-Penalty Notice may be issued
whether or not another agency has taken any action with respect to the
matter. For a description of the contents of a Pre-Penalty Notice, see
Appendix A to part 501 of this chapter.
(b)(1) Right to respond. An alleged violator has the right to
respond to a Pre-Penalty Notice by making a written presentation to the
Office of Foreign Assets Control. For a description of the information
that should be included in such a response, see Appendix A to part 501
of this chapter.
(2) Deadline for response. A response to a Pre-Penalty Notice must
be made within the applicable 30-day period set forth in this
paragraph. The failure to submit a response within the applicable time
period set forth in this paragraph shall be deemed to be a waiver of
the right to respond.
(i) Computation of time for response. A response to a Pre-Penalty
Notice must be postmarked or date-stamped by the U.S. Postal Service
(or foreign postal service, if mailed abroad) or courier service
provider (if transmitted to the Office of Foreign Assets Control by
courier) on or before the 30th day after the postmark date on the
envelope in which the Pre-Penalty Notice was mailed. If the Pre-Penalty
Notice was personally delivered by a non-U.S. Postal Service agent
authorized by the Office of Foreign Assets Control, a response must be
postmarked or date-stamped on or before the 30th day after the date of
delivery.
(ii) Extensions of time for response. If a due date falls on a
federal holiday or weekend, that due date is extended to include the
following business day. Any other extensions of time will be granted,
at the discretion of the Office of Foreign Assets Control, only upon
specific request to the Office of Foreign Assets Control.
(3) Form and method of response. A response to a Pre-Penalty Notice
need not be in any particular form, but it must be typewritten and
signed by the alleged violator or a representative thereof, must
contain information sufficient to indicate that it is in response to
the Pre-Penalty Notice, and must include the Office of Foreign Assets
Control identification number listed on the Pre-Penalty Notice. A copy
of the written response may be sent by facsimile, but the original also
must be sent to the Office of Foreign Assets Control Civil Penalties
Division by mail or courier and must be postmarked or date-stamped in
accordance with paragraph (b)(2) of this section.
(c) Settlement. Settlement discussion may be initiated by the
Office of Foreign Assets Control, the alleged violator, or the alleged
violator's authorized representative. For a description of practices
with respect to settlement, see Appendix A to part 501 of this chapter.
(d) Guidelines. Guidelines for the imposition or settlement of
civil penalties by the Office of Foreign Assets Control are contained
in Appendix A to part 501 of this chapter.
(e) Representation. A representative of the alleged violator may
act on behalf of the alleged violator, but any oral communication with
the Office of Foreign Assets Control prior to a written submission
regarding the specific allegations contained in the Pre-Penalty Notice
must be preceded by a written letter of representation, unless the Pre-
Penalty Notice was served upon the alleged violator in care of the
representative.
Sec. 560.704 Penalty imposition.
If, after considering any written response to the Pre-Penalty
Notice and any relevant facts, the Office of Foreign Assets Control
determines that there was a violation by the alleged violator named in
the Pre-Penalty Notice and that a civil monetary penalty is
appropriate, the Office of Foreign Assets Control may issue a Penalty
Notice to the violator containing a determination of the violation and
the imposition of the monetary penalty. For additional details
concerning issuance of a Penalty Notice, see Appendix A to part 501 of
this chapter. The issuance of the Penalty Notice shall constitute final
agency action. The violator has the right to seek judicial review of
that final agency action in federal district court.
Sec. 560.705 Administrative collection; referral to United States
Department of Justice.
In the event that the violator does not pay the penalty imposed
pursuant to this part or make payment arrangements acceptable to the
Office of Foreign Assets Control, the matter may be referred for
administrative collection measures by the Department of the Treasury or
to the United States Department of Justice for appropriate action to
recover the penalty in a civil suit in a federal district court.
Subpart H--Procedures
Sec. 560.801 Procedures.
For license application procedures and procedures relating to
amendments, modifications, or revocations of licenses; administrative
decisions; rulemaking; and requests for documents pursuant to the
Freedom of Information and Privacy Acts (5 U.S.C. 552 and 552a), see
part 501, subpart E, of this chapter.
Sec. 560.802 Delegation by the Secretary of the Treasury.
Any action that the Secretary of the Treasury is authorized to take
pursuant to Executive Order 12613 of October 29, 1987 (3 CFR, 1987
Comp., p. 256), Executive Order 12957 of March 15, 1995 (3 CFR, 1995
Comp., p. 332), Executive Order 12959 of May 6, 1995 (3 CFR, 1995
Comp., p. 356), Executive Order 13059 of August 19, 1997 (3 CFR, 1997
Comp., p. 217), Executive Order 13599 of February 5, 2012 (77 FR 6659,
February 8, 2012), and any further Executive orders relating to the
national emergency declared in Executive Order 12957, may be taken by
the Director of the Office of Foreign Assets Control or by any other
person to whom the Secretary of the Treasury has delegated authority so
to act.
[[Page 64691]]
Sec. 560.803 [Reserved]
Subpart I--Paperwork Reduction Act
Sec. 560.901 Paperwork Reduction Act notice.
For approval by the Office of Management and Budget (``OMB'') under
the Paperwork Reduction Act of 1995 (44 U.S.C. 3507) of information
collections relating to recordkeeping and reporting requirements,
licensing procedures (including those pursuant to statements of
licensing policy), and other procedures, see Sec. 501.901 of this
chapter. An agency may not conduct or sponsor, and a person is not
required to respond to, a collection of information unless it displays
a valid control number assigned by OMB.
Appendix A to Part 560 [Reserved]
Appendix B to Part 560--Bulk Agricultural Commodities
Notes: 1. Appendix B sets forth those bulk agricultural
commodities eligible for sale pursuant to the licensing procedures
and the general license in Sec. 560.530.
2. Commodities are identified by their classification numbers in
the Harmonized Tariff Schedule of the United States (see 19 U.S.C.
1202) (``HTS'').
------------------------------------------------------------------------
HTS No. Commodity
------------------------------------------------------------------------
1001.10............................... Durum Wheat.
1001.90............................... Other Wheat and Meslin,
including seed, Red Spring
Wheat, White Winter Wheat,
``Canadian'' Western Red Winter
Wheat, Soft White Spring Wheat,
and Wheat not elsewhere
specified.
1101.00............................... Wheat or Meslin Flour.
1006.10............................... Rice in the husk (paddy or
rough).
1006.20............................... Husked (brown) Rice.
1006.30............................... Semi-milled or wholly milled
Rice, whether or not polished
or glazed.
1006.40............................... Broken Rice.
1102.30............................... Rice Flour.
1103.14............................... Rice Groats, Meal and Pellets.
1002.00............................... Rye.
1003.00............................... Barley.
1004.00............................... Oats.
1007.00............................... Grain Sorghum.
1005.00............................... Corn (Maize).
0713.31............................... Dried Beans including Vigna
mungo (L.), Hepper, and Vigna
radiata (L.) Wilczek.
0713.32............................... Small red (adzuki) beans.
0713.33............................... Kidney beans, including white
pea beans.
0713.39............................... Beans, other.
0713.50............................... Broad beans and horse beans.
0713.10............................... Dried Peas (Pisum sativum).
0713.20............................... Chickpeas (garbanzos).
0713.40............................... Lentils.
0713.90............................... Dried leguminous vegetables,
shelled, not elsewhere
specified.
1201.00............................... Soybeans, whether or not broken.
2304.00............................... Soybean cake, meal and pellets.
1507.10............................... Soybean oil, crude.
1507.90............................... Soybean oil, other.
1514.10............................... Rapeseed, colza and mustard oil,
crude.
1514.90............................... Rapeseed, colza and mustard oil,
other.
1515.21............................... Corn (Maize) oil, crude.
1515.29............................... Corn (Maize) oil, other.
1512.21............................... Cottonseed oil, crude.
1512.29............................... Cottonseed oil, other.
1517.90............................... Cottonseed oil, hydrogenated.
1508.10............................... Peanut (ground-nut) oil, crude.
1508.90............................... Peanut (ground-nut) oil, other.
1515.50............................... Sesame oil.
1512.11............................... Sunflower-seed oil, crude.
1512.19............................... Sunflower-seed oil, other.
1212.91............................... Sugar Beets, fresh, chilled,
frozen or dried.
1212.92............................... Sugar Cane, fresh, chilled,
frozen or dried.
1701.11............................... Cane Sugar, raw, solid form.
1701.12............................... Beet Sugar, raw, solid form.
1701.91............................... Cane or Beet Sugar, solid form,
containing added coloring or
flavoring.
1701.99............................... Cane or Beet Sugar, other, not
elsewhere specified.
------------------------------------------------------------------------
Appendix C to Part 560--[Reserved]
Appendix A to Chapter V--[Amended]
0
2. The authority citation for Appendix A to Chapter V continues to read
as follows:
Authority: 3 U.S.C. 301; 8 U.S.C. 1182, 1189; 18 U.S.C. 2339b;
21 U.S.C. 1091-1908; 22 U.S.C. 287C; 31 U.S.C. 321(b); 50 U.S.C.
App. 1-44; Pub. L. 110-286, 122 Stat. 2632; Pub. L. 111-195, 124
Stat. 1312 (22 U.S.C. 8501-8551); Pub. L. 112-81, 125 Stat. 1298.
0
3. 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 (the ``ITSR''). The SDN List entries
for such persons include the identifier ``[IRAN].'' U.S. persons are
advised to review 31 CFR part 560 prior to engaging in transactions
involving the
[[Page 64692]]
persons included on the SDN List with the identifier ``[IRAN].''
U.S. persons are further cautioned that persons identified as the
Government of Iran, an Iranian financial institution, or any other
person whose property and interests in property are blocked pursuant
to 31 CFR 560.211 also may be designated or blocked pursuant to
other sanctions programs administered by OFAC. The SDN List entry
for such a person may include--in addition to the identifier
``[IRAN]''--identifier(s) for the other sanctions program(s)
pursuant to which the person is listed on the SDN List. Moreover,
the prohibitions set forth in the ITSR, and the compliance
obligations, with respect to persons who fall within the definition
of the Government of Iran in Sec. 560.304 of the ITSR apply
regardless of whether such persons are identified on the SDN List.
Dated: October 15, 2012.
Adam J. Szubin,
Director, Office of Foreign Assets Control.
Approved: October 15, 2012.
David S. Cohen,
Under Secretary, Office of Terrorism and Financial Intelligence,
Department of the Treasury.
[FR Doc. 2012-25770 Filed 10-19-12; 8:45 am]
BILLING CODE P