Iranian Transactions and Sanctions Regulations, 3330-3333 [2016-01227]
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Federal Register / Vol. 81, No. 13 / Thursday, January 21, 2016 / Rules and Regulations
Control), Office of the General Counsel,
tel.: 202–622–2410.
SUPPLEMENTARY INFORMATION:
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
Electronic and Facsimile Availability
This document and additional
information concerning OFAC are
available from OFAC’s Web site
(www.treasury.gov/ofac). Certain general
information pertaining to OFAC’s
sanctions programs also is available via
facsimile through a 24-hour fax-ondemand service, tel.: 202–622–0077.
31 CFR Part 560 and Appendix A to
Chapter V
Iranian Transactions and Sanctions
Regulations
Office of Foreign Assets
Control, Treasury.
ACTION: Final rule.
AGENCY:
The Department of the
Treasury’s Office of Foreign Assets
Control (OFAC) is amending the Iranian
Transactions and Sanctions Regulations
(ITSR) to implement certain United
States Government (USG) commitments
under the Joint Comprehensive Plan of
Action (JCPOA) reached on July 14,
2015 between the P5+1 (China, France,
Germany, Russia, the United Kingdom,
and the United States), the European
Union (EU), and Iran. In particular,
OFAC is adding to the ITSR general
licenses authorizing the importation
into the United States of, and dealings
in, certain Iranian-origin foodstuffs and
carpets and related transactions to
implement the USG commitment set out
in section 5.1.3 of Annex II and section
17.5 of Annex V of the JCPOA. In
addition, to reflect the USG’s
implementation of its commitment set
out in section 4 of Annex II and section
17.4 of Annex V of the JCPOA to
terminate Executive Order 13622 of July
30, 2012, OFAC is removing regulatory
provisions that implemented the
blocking sanctions in sections 5 and 6
of Executive Order 13622. OFAC is also
making certain technical and
conforming changes to its regulations to
reflect the implementation of the USG
commitment set out in section 4.8.1 of
Annex II and section 17.3 of Annex V
of the JCPOA to remove the individuals
and entities set forth in Attachment 3 to
Annex II of the JCPOA from OFAC’s
Specially Designated Nationals and
Blocked Persons List, the Foreign
Sanctions Evaders List, and/or the NonSDN Iran Sanctions Act List, as
appropriate, on Implementation Day of
the JCPOA.
DATES: Effective: January 21, 2016
FOR FURTHER INFORMATION CONTACT: The
Department of the Treasury’s Office of
Foreign Assets Control: Assistant
Director for Licensing, tel.: 202–622–
2480, Assistant Director for Regulatory
Affairs, tel.: 202–622–4855, Assistant
Director for Sanctions Compliance &
Evaluation, tel.: 202–622–2490; or the
Department of the Treasury’s Office of
the Chief Counsel (Foreign Assets
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SUMMARY:
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Background
On July 14, 2015, the P5+1 (China,
France, Germany, Russia, the United
Kingdom, and the United States), the
European Union (EU), and Iran reached
a Joint Comprehensive Plan of Action
(JCPOA) to ensure that Iran’s nuclear
program is exclusively peaceful. The
JCPOA provides that the United States
Government (USG) will undertake the
sanctions-related commitments
described in sections 17.1 to 17.4 of
Annex V of the JCPOA once the
International Atomic Energy Agency
(IAEA) has verified that Iran has
implemented key nuclear-related
commitments described in the JCPOA.
The date for this sanctions lifting is
referred to as ‘‘Implementation Day’’ in
the JCPOA. In addition, the JCPOA
provides that, on Implementation Day,
the USG will license certain activities
involving Iran as described in section 5
of Annex II and section 17.5 of Annex
V of the JCPOA. OFAC is now amending
the Iranian Transactions and Sanctions
Regulations, 31 CFR part 560 (ITSR), to
implement the USG’s commitment
pursuant to the JCPOA to license the
importation into the United States of
Iranian-origin carpets and foodstuffs,
including pistachios and caviar, and to
make certain technical and conforming
changes to reflect the implementation of
other USG JCPOA commitments on
Implementation Day, as set forth below.
Importation of Certain Foodstuffs and
Carpets
To implement the USG commitment
set out in section 5.1.3 of Annex II and
section 17.5 of Annex V of the JCPOA
to license the importation into the
United States of Iranian-origin carpets
and foodstuffs, including pistachios and
caviar, OFAC is adding § 560.534 to the
ITSR to authorize by general license the
importation into the United States of,
and dealings in, certain Iranian-origin
foodstuffs and carpets from Iran or a
third country. OFAC’s publication of
this general license as an amendment to
the ITSR fulfills the requirements of
section 103(d)(2)(A) of the
Comprehensive Iran Sanctions,
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Accountability, and Divestment Act of
2010, as amended, (Pub. L. 111–195) (22
U.S.C. 8501–8551) (CISADA). In
addition, to fulfill the requirements of
section 103(d)(2)(B) of CISADA, the
Secretary of State is submitting to the
appropriate congressional committees a
certification in writing that it is in the
national interest of the United States to
provide an exception to the prohibition
on the importation of Iranian-origin
goods to the extent required to
implement the sanctions commitment
described in section 5.1.3 of Annex II of
the JCPOA and a report describing the
reasons for this exception.
Section 560.534(a) authorizes the
importation into the United States of
Iranian-origin foodstuffs intended for
human consumption that are classified
under chapters 2–23 of the Harmonized
Tariff Schedule of the United States
(HTS). Items that are classified in
chapters 2–23 of the HTS that are not
foodstuffs intended for human
consumption are not authorized for
importation into the United States by
this section. This section also authorizes
the importation into the United States of
Iranian-origin carpets and other textile
floor coverings and carpets used as wall
hangings that are classified under
chapter 57 or heading 9706.00.0060 of
the HTS. Items that are classified under
heading 9706.00.0060 (‘‘Antiques of an
age exceeding one hundred years/
Other’’) that are not carpets and other
textile wall coverings or carpets used as
wall hangings are not authorized for
importation into the United States by
this section.
Section 560.534(b) authorizes U.S.
persons, wherever located, to engage in
transactions or dealings in or related to
such Iranian-origin foodstuffs and
carpets, provided that such transactions
or dealings do not involve or relate to
goods, technology, or services for
exportation, reexportation, sale, or
supply, directly or indirectly, 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 the ITSR, other than
services described in § 560.405
(‘‘Transactions ordinarily incident to a
licensed transaction authorized’’) and
transfers of funds described in § 560.516
(‘‘Transfers of funds involving Iran’’).
Section 560.534(c) clarifies that
§ 560.534(a)–(b) does not authorize the
importation into the United States of
goods that are under seizure or
detention by the Department of
Homeland Security, or of goods for
which forfeiture proceedings have
commenced or of goods that have been
forfeited to the U.S. Government.
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Section 560.534(d) clarifies that nothing
in § 560.534 authorizes the debiting or
crediting of Iranian accounts, as defined
in § 560.320.
Transactions ordinarily incident to
the transactions authorized in § 560.534
and necessary to give effect thereto also
are authorized as set forth in § 560.405.
OFAC is amending § 560.405 by
inserting new paragraph (f), which
clarifies that the scope of authorized
incidental transactions does not include
letter of credit services relating to
transactions authorized in § 560.534.
Those letter of credit services that are
authorized are set forth separately in
paragraphs (a) and (b) of § 560.535,
which OFAC is also adding to the ITSR.
Please see §§ 560.405(b) and 560.516
regarding transfers of funds in
connection with licensed activities.
Brokering services relating to
transactions authorized by this final rule
also are authorized. See § 560.535(c).
Executive Order 13622
On July 30, 2012, the President,
invoking the authority of, inter alia, the
International Emergency Economic
Powers Act (50 U.S.C. 1701 et seq.)
(IEEPA), issued Executive Order (E.O.)
13622. Section 5 of E.O. 13622 blocked
‘‘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
any person determined by the Secretary
of the Treasury, in consultation with the
Secretary of State, to have materially
assisted, sponsored, or provided
financial, material, or technological
support for, or goods or services in
support of, the National Iranian Oil
Company (NIOC), the Naftiran
Intertrade Company (NICO), or the
Central Bank of Iran, or the purchase or
acquisition of U.S. bank notes or
precious metals by the Government of
Iran. Section 6 of E.O. 13622 provided
that subsection 5(a) of E.O. 13622,
among other specified provisions, shall
not apply with respect to any person for
conducting or facilitating a transaction
involving a natural gas development
and pipeline project initiated prior to
July 31, 2012, to bring gas from
Azerbaijan to Europe and Turkey in
furtherance of a production sharing
agreement or license awarded by a
sovereign government other than the
Government of Iran. On December 26,
2012, OFAC published a final rule in
the Federal Register (77 FR 75845) that,
inter alia, implemented sections 5 and
6 of E.O. 13622 by amending § 560.211
of the ITSR to add paragraph (c)(2) and
a corresponding note.
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Pursuant to its Implementation Day
commitment set out in section 4 of
Annex II and section 17.4 of Annex V
of the JCPOA, the United States
Government has revoked E.O. 13622.
Accordingly, OFAC is amending
§ 560.211 of the ITSR by removing
paragraph (c)(2) and the Note to
paragraph (c)(2), which implemented
sections 5 and 6 of E.O. 13622,
respectively.
Technical and Conforming Changes
OFAC is also making certain technical
and conforming changes to 31 CFR
chapter V to reflect the implementation
of the USG commitment set out in
section 4.8.1 of Annex II and section
17.3 of Annex V of the JCPOA. Pursuant
to that commitment, on Implementation
Day, OFAC is removing individuals and
entities identified in Attachment 3 to
Annex II of the JCPOA from the
Specially Designated Nationals and
Blocked Persons List (SDN List), the
Foreign Sanctions Evaders List, and/or
the Non-SDN Iran Sanctions Act List, as
appropriate. The individuals and
entities being removed from the SDN
List include persons that OFAC has
previously identified as blocked
pursuant to E.O. 13599 of February 5,
2012 (‘‘Blocking Property of the
Government Iran and Iranian Financial
Institutions’’) because they meet the
definition of the terms ‘‘Government of
Iran’’ or ‘‘Iranian financial institution.’’
These individuals and entities are
marked with an asterisk in Attachment
3 to Annex II of the JCPOA. Non-U.S.
persons will no longer be subject to
secondary sanctions, including under
relevant provisions of the Iran Freedom
and Counter-Proliferation Act of 2012
and other applicable authorities, for
engaging in transactions or activities
with these individuals and entities,
provided that the transactions do not
include conduct that remains
sanctionable or individuals or entities
that remain on the SDN List. However,
these individuals and entities being
removed from the SDN List remain
persons whose property and interests in
property that are in the U.S., or that are
or come within the possession or
control of any U.S. person, are blocked
pursuant to E.O. 13599. While OFAC is
removing these persons from the SDN
List on Implementation Day, they will
now be included on a ‘‘List of Persons
Identified as Blocked Solely Pursuant to
Executive Order 13599’’ (E.O. 13599
List), which OFAC is making available
on its Web site: www.treasury.gov/
resource-center/sanctions/Programs/
Pages/13599_list.aspx. To reflect these
changes, OFAC is revising notes in
§§ 560.211 and 560.304 of the ITSR,
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adding a new note to § 560.324 of the
ITSR, and revising a note to appendix A
to 31 CFR chapter V.
Public Participation
Because the amendment of the ITSR
involves 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 and
Appendix A to Chapter V
Administrative practice and
procedure, Banks, Banking, Carpet,
Foodstuffs, Iran, Letters of credit.
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:
PART 560—IRANIAN TRANSACTIONS
AND SANCTIONS REGULATIONS
1. The authority citation for part 560
is revised to read as follows:
■
Authority: 3 U.S.C. 301; 18 U.S.C. 2339B,
2332d; 22 U.S.C. 2349aa–9; 22 U.S.C. 7201–
7211; 31 U.S.C. 321(b); 50 U.S.C. 1601–1651,
1701–1706; Public Law 101–410, 104 Stat.
890 (28 U.S.C. 2461 note); Public Law 110–
96, 121 Stat. 1011 (50 U.S.C. 1705 note);
Public Law 111–195, 124 Stat. 1312 (22
U.S.C. 8501–8551); Public Law 112–81, 125
Stat. 1298 (22 U.S.C. 8513a); Public Law 112–
158, 126 Stat. 1214 (22 U.S.C. 8701–8795);
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 6659, 3 CFR, 2012 Comp., p.
215; E.O. 13628, 77 FR 62139, 3 CFR, 2012
Comp., p. 314.
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Subpart B—Prohibitions
2. Amend § 560.211 by removing the
word ‘‘or’’ from the end of paragraph
(c)(1), removing and reserving paragraph
(c)(2), removing the note to paragraph
(c)(2), and revising notes 1 and 2 to
paragraphs (a) through (c) to read as
follows:
■
Register and incorporated into the E.O.
13599 List or the SDN List, as appropriate,
with the identifier ‘‘[BPI–IRAN].’’
*
*
*
*
*
Subpart C—General Definitions
3. Amend § 560.304 by revising Note
1 to § 560.304 to read as follows:
■
§ 560.211 Prohibited transactions
involving blocked property.
§ 560.304
Government of Iran.
*
*
*
Note 1 to § 560.304: The names of persons
that the Office of Foreign Assets Control
(OFAC) has determined fall within this
definition are published in the Federal
Register and incorporated into one of two
lists maintained by OFAC. First, the names
of persons identified as blocked solely
pursuant to Executive Order 13599 of
February 5, 2012 (‘‘Blocking Property of the
Government Iran and Iranian Financial
Institutions’’) (E.O. 13599) and § 560.211
because they meet the definition of the term
‘‘Government of Iran’’ are incorporated into
the ‘‘List of Persons Identified as Blocked
Solely Pursuant to Executive Order 13599’’)
(E.O. 13599 List). The E.O. 13599 List is
accessible through the following page on
OFAC’s Web site: www.treasury.gov/
resource-center/sanctions/Programs/Pages/
13599_list.aspx. Second, the names of
persons identified as blocked pursuant to
E.O. 13599 and § 560.211 who are also
blocked pursuant to one or more other parts
of this chapter are incorporated into OFAC’s
Specially Designated Nationals and Blocked
Persons List (SDN List) with the identifier
‘‘[IRAN]’’ as well as the relevant identifier(s)
for the other sanctions program(s) pursuant
to which the persons’ property and interests
in property are blocked. The SDN List is
accessible through the following page on the
OFAC’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 E.O. 13599 List or the
SDN List.
*
*
*
*
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Note 1 to paragraphs (a) through (c) of
§ 560.211: The names of persons identified
by the Office of Foreign Assets Control
(OFAC) as blocked solely pursuant to
Executive Order 13599 of February 5, 2012
(‘‘Blocking Property of the Government Iran
and Iranian Financial Institutions’’) (E.O.
13599) because they meet the definition of
the terms ‘‘Government of Iran’’ or ‘‘Iranian
financial institution,’’ whose property and
interests in property therefore are blocked
pursuant to this section, are published in the
Federal Register and incorporated into the
‘‘List of Persons Identified as Blocked Solely
Pursuant to Executive Order 13599’’) (E.O.
13599 List). The E.O. 13599 List is accessible
through the following page on OFAC’s Web
site: www.treasury.gov/resource-center/
sanctions/Programs/Pages/13599_list.aspx.
The names of persons identified as blocked
or designated for blocking pursuant to both
this part and one or more other parts of this
chapter are published in the Federal Register
and incorporated into OFAC’s Specially
Designated Nationals and Blocked Persons
List (SDN List) with the identifier ‘‘[IRAN]’’
as well as the relevant identifier(s) for the
other sanctions program(s) pursuant to which
the persons’ property and interests in
property are blocked. The SDN List is
accessible through the following page on
OFAC’s Web site: www.treasury.gov/sdn.
Additional information pertaining to the E.O.
13599 List and the SDN List can be found in
appendix A to this chapter. See § 560.425
concerning entities that may not be listed on
the E.O. 13599 List or on the SDN List but
whose property and interests in property are
nevertheless blocked pursuant to this section.
E.O. 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 E.O. 13599
List or the SDN List.
Note 2 to paragraphs (a) through (c) of
§ 560.211: The International Emergency
Economic Powers Act (50 U.S.C. 1701–1706),
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
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*
*
*
*
*
*
*
*
4. Section 560.324 is amended by
adding Notes 1 and 2 to § 560.324 to
read as follows:
■
§ 560.324
Iranian financial institution.
*
*
*
*
*
Note 1 to § 560.324: The names of persons
that the Office of Foreign Assets Control
(OFAC) has determined fall within this
definition are published in the Federal
Register and incorporated into one of two
lists maintained by the OFAC. First, the
names of persons identified as blocked solely
pursuant to Executive Order 13599 of
February 5, 2012 (‘‘Blocking Property of the
Government Iran and Iranian Financial
Institutions’’) (E.O. 13599) and § 560.211
because they meet the definition of the term
‘‘Iranian financial institution’’ are
incorporated into the ‘‘List of Persons
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Identified as Blocked Solely Pursuant to
Executive Order 13599’’) (E.O. 13599 List).
The E.O. 13599 List is accessible through the
following page on OFAC’s Web site:
www.treasury.gov/resource-center/sanctions/
Programs/Pages/13599_list.aspx. Second, the
names of persons identified as blocked
pursuant to E.O. 13599 and § 560.211 who
are also blocked pursuant to one or more
other parts of this chapter are incorporated
into OFAC’s Specially Designated Nationals
and Blocked Persons List (SDN List) with the
identifier ‘‘[IRAN]’’ as well as the relevant
identifier(s) for the other sanctions
program(s) pursuant to which the persons’
property and interests in property are
blocked. The SDN List is accessible through
the following page on OFAC’s Web site:
www.treasury.gov/sdn. However, the
property and interests in property of persons
falling within the definition of the term
Iranian financial institution are blocked
pursuant to § 560.211 regardless of whether
the names of such persons are published in
the Federal Register or incorporated into the
E.O. 13599 List or the SDN List.
Note 2 to § 560.324: 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
Iranian financial institution.
Subpart D—Interpretations
5. Amend § 560.405 by removing the
word ‘‘and’’ at the end of paragraph (d),
removing the period at the end of
paragraph (e) and adding ‘‘; and’’ in its
place, and adding paragraph (f) to read
as follows:
■
§ 560.405 Transactions ordinarily incident
to a licensed transaction authorized.
*
*
*
*
*
(f) Letter of credit services relating to
transactions authorized in § 560.534.
See § 560.535(a).
Subpart E—Licenses, Authorizations,
and Statements of Licensing Policy
6. Add § 560.534 to subpart E to read
as follows:
■
§ 560.534 Importation into the United
States of, and dealings in, certain
foodstuffs and carpets authorized.
(a) The importation into the United
States, from Iran or a third country, of
the following goods of Iranian origin is
authorized:
(1) Foodstuffs intended for human
consumption that are classified under
chapters 2–23 of the Harmonized Tariff
Schedule of the United States;
(2) Carpets and other textile floor
coverings and carpets used as wall
hangings that are classified under
chapter 57 or heading 9706.00.0060 of
the Harmonized Tariff Schedule of the
United States.
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(b) United States persons, wherever
located, are authorized to engage in
transactions or dealings in or related to
the categories of Iranian-origin goods
described in paragraph (a) of this
section, provided that the transaction or
dealing does not involve or relate to
goods, technology, or services for
exportation, reexportation, sale, or
supply, directly or indirectly, 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, other than services described
in § 560.405 (‘‘Transactions ordinarily
incident to a licensed transaction
authorized’’) and transfers of funds
described in § 560.516 (‘‘Transfers of
funds involving Iran’’).
(c) This general license does not
authorize the importation into the
United States of goods that are under
seizure or detention by the Department
of Homeland Security, as of January 21,
2016, pursuant to Customs regulations
or other applicable provisions of law,
until any applicable penalties, charges,
duties, or other conditions are satisfied.
This general license does not authorize
the importation into the United States of
goods for which forfeiture proceedings
have commenced or of goods that have
been forfeited to the U.S. Government,
other than through U.S. Customs and
Border Protection disposition, including
by selling at auction.
(d) Iranian accounts. Nothing in this
section authorizes debits or credits to
Iranian accounts, as defined in
§ 560.320.
■ 7. Add § 560.535 to subpart E to read
as follows:
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§ 560.535 Letters of credit and brokering
services relating to certain foodstuffs and
carpets.
(a) Purchases from Iran or the
Government of Iran or certain other
blocked persons. United States
depository institutions are authorized to
issue letters of credit in favor of a
beneficiary in 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 to pay for
purchases from Iran or the Government
of Iran of the categories of Iranian-origin
goods described in § 560.534(a),
provided that such letters of credit are
not advised, negotiated, paid, or
confirmed by the Government of Iran,
an Iranian financial institution, or any
other person whose property and
interests in property are blocked
pursuant to § 560.211.
(b) Transactions or dealings in
Iranian-origin goods located in third
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countries, other than purchases from
the Government of Iran or certain other
blocked persons. United States
depository institutions are authorized to
issue, advise, negotiate, or confirm
letters of credit to pay for transactions
in or related to Iranian-origin goods
described in § 560.534(a) and located in
a third-country, other than purchases
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, provided that such letters of
credit are not issued, advised,
negotiated, paid, or confirmed by the
Government of Iran, an Iranian financial
institution, or any other person whose
property and interests in property are
blocked pursuant to § 560.211.
(c) Brokering. United States persons,
wherever located, are authorized to act
as brokers for the purchase or sale of the
categories of Iranian-origin goods
described in § 560.534(a), provided that
the goods are not for exportation,
reexportation, sale, or supply, directly
or indirectly, 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.
(d) Iranian accounts. Nothing in this
section authorizes debits or credits to
Iranian accounts, as defined in
§ 560.320.
Note to § 560.535: See §§ 560.304 and
560.313 for information relating to
individuals and entities that are included
within the definition of the term Government
of Iran and § 560.324 regarding entities
included within the definition of the term
Iranian financial institution. See § 560.516
for information relating to authorized
transfers to Iran by U.S. depository
institutions relating to licensed transactions.
Appendix A to Chapter V—[Amended]
8. The authority citation for appendix
A to chapter V is revised to read as
follows:
3333
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 (ITSR), only
when the property and interests in property
of such persons are also blocked pursuant to
one or more other parts of this chapter. The
SDN List entries for such persons include the
identifier ‘‘[IRAN]’’ as well as the relevant
identifier(s) for the other sanctions
program(s) pursuant to which the persons’
property and interests in property are
blocked. The names of persons identified as
blocked solely pursuant to Executive Order
13599 of February 5, 2012 (‘‘Blocking
Property of the Government Iran and Iranian
Financial Institutions’’) (E.O. 13599) and
§ 560.211 of the ITSR because they meet the
definition of the terms Government of Iran or
Iranian financial institution under the ITSR
are incorporated into the ‘‘List of Persons
Identified as Blocked Solely Pursuant to
Executive Order 13599’’ (E.O. 13599 List).
The E.O. 13599 List is accessible through the
following page on the Office of Foreign
Assets Control’s Web site: www.treasury.gov/
resource-center/sanctions/Programs/Pages/
13599_list.aspx. U.S. persons are advised to
review 31 CFR part 560 prior to engaging in
transactions involving persons included on
the E.O. 13599 List or the SDN List with the
identifier ‘‘[IRAN].’’ Moreover, the
prohibitions set forth in the ITSR, and the
compliance obligations, with respect to
persons who fall within the definition of the
terms Government of Iran or Iranian
financial institution set forth in §§ 560.304
and 560.324 of the ITSR, respectively, apply
regardless of whether such persons are
identified on the E.O. 13599 List or the SDN
List.
*
*
*
*
*
John E. Smith,
Acting Director, Office of Foreign Assets
Control.
[FR Doc. 2016–01227 Filed 1–19–16; 4:15 pm]
BILLING CODE 4810–AL–P
■
Authority: 3 U.S.C. 301; 8 U.S.C. 1182,
1189; 18 U.S.C. 2339 B; 21 U.S.C. 1901–1908;
22 U.S.C. 287 c; 31 U.S.C. 321(b); 50 U.S.C.
App. 1–44; Public Law 110–286, 122 Stat.
2632 (50 U.S.C. 1701 note); Public Law 111–
195, 124 Stat. 1312 (22 U.S.C. 8501–8551);
Public Law 112–81, 125 Stat. 1298 (22 U.S.C.
8513a); Public Law 112–158, 126 Stat. 1214
(22 U.S.C. 8701–8795); Public Law 112–208,
126 Stat. 1502; Public Law 113–278, 128 Stat.
3011 (50 U.S.C. 1701 note).
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 165
[Docket No. USCG–2016–0019]
Security Zones; Annual Events in the
Captain of the Port Detroit Zone–North
American International Auto Show,
Detroit River, Detroit MI
9. Revise note 8 to appendix A to
chapter V to read as follows:
AGENCY:
Appendix A to Chapter V—Information
Pertaining to the Specially Designated
Nationals and Blocked Persons List
SUMMARY:
■
*
PO 00000
*
*
Frm 00045
*
Fmt 4700
*
Sfmt 4700
Coast Guard, DHS.
Notice of enforcement of
regulation.
ACTION:
The Coast Guard will enforce
a security zone associated with the
North American International Auto
E:\FR\FM\21JAR1.SGM
21JAR1
Agencies
[Federal Register Volume 81, Number 13 (Thursday, January 21, 2016)]
[Rules and Regulations]
[Pages 3330-3333]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-01227]
[[Page 3330]]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 560 and Appendix A to Chapter V
Iranian Transactions and Sanctions 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 amending the Iranian Transactions and Sanctions
Regulations (ITSR) to implement certain United States Government (USG)
commitments under the Joint Comprehensive Plan of Action (JCPOA)
reached on July 14, 2015 between the P5+1 (China, France, Germany,
Russia, the United Kingdom, and the United States), the European Union
(EU), and Iran. In particular, OFAC is adding to the ITSR general
licenses authorizing the importation into the United States of, and
dealings in, certain Iranian-origin foodstuffs and carpets and related
transactions to implement the USG commitment set out in section 5.1.3
of Annex II and section 17.5 of Annex V of the JCPOA. In addition, to
reflect the USG's implementation of its commitment set out in section 4
of Annex II and section 17.4 of Annex V of the JCPOA to terminate
Executive Order 13622 of July 30, 2012, OFAC is removing regulatory
provisions that implemented the blocking sanctions in sections 5 and 6
of Executive Order 13622. OFAC is also making certain technical and
conforming changes to its regulations to reflect the implementation of
the USG commitment set out in section 4.8.1 of Annex II and section
17.3 of Annex V of the JCPOA to remove the individuals and entities set
forth in Attachment 3 to Annex II of the JCPOA from OFAC's Specially
Designated Nationals and Blocked Persons List, the Foreign Sanctions
Evaders List, and/or the Non-SDN Iran Sanctions Act List, as
appropriate, on Implementation Day of the JCPOA.
DATES: Effective: January 21, 2016
FOR FURTHER INFORMATION CONTACT: The Department of the Treasury's
Office of Foreign Assets Control: Assistant Director for Licensing,
tel.: 202-622-2480, Assistant Director for Regulatory Affairs, tel.:
202-622-4855, Assistant Director for Sanctions Compliance & Evaluation,
tel.: 202-622-2490; or the Department of the Treasury's Office of the
Chief Counsel (Foreign Assets Control), Office of the General Counsel,
tel.: 202-622-2410.
SUPPLEMENTARY INFORMATION:
Electronic and Facsimile Availability
This document and additional information concerning OFAC are
available from OFAC's Web site (www.treasury.gov/ofac). Certain general
information pertaining to OFAC's sanctions programs also is available
via facsimile through a 24-hour fax-on-demand service, tel.: 202-622-
0077.
Background
On July 14, 2015, the P5+1 (China, France, Germany, Russia, the
United Kingdom, and the United States), the European Union (EU), and
Iran reached a Joint Comprehensive Plan of Action (JCPOA) to ensure
that Iran's nuclear program is exclusively peaceful. The JCPOA provides
that the United States Government (USG) will undertake the sanctions-
related commitments described in sections 17.1 to 17.4 of Annex V of
the JCPOA once the International Atomic Energy Agency (IAEA) has
verified that Iran has implemented key nuclear-related commitments
described in the JCPOA. The date for this sanctions lifting is referred
to as ``Implementation Day'' in the JCPOA. In addition, the JCPOA
provides that, on Implementation Day, the USG will license certain
activities involving Iran as described in section 5 of Annex II and
section 17.5 of Annex V of the JCPOA. OFAC is now amending the Iranian
Transactions and Sanctions Regulations, 31 CFR part 560 (ITSR), to
implement the USG's commitment pursuant to the JCPOA to license the
importation into the United States of Iranian-origin carpets and
foodstuffs, including pistachios and caviar, and to make certain
technical and conforming changes to reflect the implementation of other
USG JCPOA commitments on Implementation Day, as set forth below.
Importation of Certain Foodstuffs and Carpets
To implement the USG commitment set out in section 5.1.3 of Annex
II and section 17.5 of Annex V of the JCPOA to license the importation
into the United States of Iranian-origin carpets and foodstuffs,
including pistachios and caviar, OFAC is adding Sec. 560.534 to the
ITSR to authorize by general license the importation into the United
States of, and dealings in, certain Iranian-origin foodstuffs and
carpets from Iran or a third country. OFAC's publication of this
general license as an amendment to the ITSR fulfills the requirements
of section 103(d)(2)(A) of the Comprehensive Iran Sanctions,
Accountability, and Divestment Act of 2010, as amended, (Pub. L. 111-
195) (22 U.S.C. 8501-8551) (CISADA). In addition, to fulfill the
requirements of section 103(d)(2)(B) of CISADA, the Secretary of State
is submitting to the appropriate congressional committees a
certification in writing that it is in the national interest of the
United States to provide an exception to the prohibition on the
importation of Iranian-origin goods to the extent required to implement
the sanctions commitment described in section 5.1.3 of Annex II of the
JCPOA and a report describing the reasons for this exception.
Section 560.534(a) authorizes the importation into the United
States of Iranian-origin foodstuffs intended for human consumption that
are classified under chapters 2-23 of the Harmonized Tariff Schedule of
the United States (HTS). Items that are classified in chapters 2-23 of
the HTS that are not foodstuffs intended for human consumption are not
authorized for importation into the United States by this section. This
section also authorizes the importation into the United States of
Iranian-origin carpets and other textile floor coverings and carpets
used as wall hangings that are classified under chapter 57 or heading
9706.00.0060 of the HTS. Items that are classified under heading
9706.00.0060 (``Antiques of an age exceeding one hundred years/Other'')
that are not carpets and other textile wall coverings or carpets used
as wall hangings are not authorized for importation into the United
States by this section.
Section 560.534(b) authorizes U.S. persons, wherever located, to
engage in transactions or dealings in or related to such Iranian-origin
foodstuffs and carpets, provided that such transactions or dealings do
not involve or relate to goods, technology, or services for
exportation, reexportation, sale, or supply, directly or indirectly, 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 the ITSR, other than services described in
Sec. 560.405 (``Transactions ordinarily incident to a licensed
transaction authorized'') and transfers of funds described in Sec.
560.516 (``Transfers of funds involving Iran''). Section 560.534(c)
clarifies that Sec. 560.534(a)-(b) does not authorize the importation
into the United States of goods that are under seizure or detention by
the Department of Homeland Security, or of goods for which forfeiture
proceedings have commenced or of goods that have been forfeited to the
U.S. Government.
[[Page 3331]]
Section 560.534(d) clarifies that nothing in Sec. 560.534 authorizes
the debiting or crediting of Iranian accounts, as defined in Sec.
560.320.
Transactions ordinarily incident to the transactions authorized in
Sec. 560.534 and necessary to give effect thereto also are authorized
as set forth in Sec. 560.405. OFAC is amending Sec. 560.405 by
inserting new paragraph (f), which clarifies that the scope of
authorized incidental transactions does not include letter of credit
services relating to transactions authorized in Sec. 560.534. Those
letter of credit services that are authorized are set forth separately
in paragraphs (a) and (b) of Sec. 560.535, which OFAC is also adding
to the ITSR. Please see Sec. Sec. 560.405(b) and 560.516 regarding
transfers of funds in connection with licensed activities. Brokering
services relating to transactions authorized by this final rule also
are authorized. See Sec. 560.535(c).
Executive Order 13622
On July 30, 2012, the President, invoking the authority of, inter
alia, the International Emergency Economic Powers Act (50 U.S.C. 1701
et seq.) (IEEPA), issued Executive Order (E.O.) 13622. Section 5 of
E.O. 13622 blocked ``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 any person determined by
the Secretary of the Treasury, in consultation with the Secretary of
State, to have materially assisted, sponsored, or provided financial,
material, or technological support for, or goods or services in support
of, the National Iranian Oil Company (NIOC), the Naftiran Intertrade
Company (NICO), or the Central Bank of Iran, or the purchase or
acquisition of U.S. bank notes or precious metals by the Government of
Iran. Section 6 of E.O. 13622 provided that subsection 5(a) of E.O.
13622, among other specified provisions, shall not apply with respect
to any person for conducting or facilitating a transaction involving a
natural gas development and pipeline project initiated prior to July
31, 2012, to bring gas from Azerbaijan to Europe and Turkey in
furtherance of a production sharing agreement or license awarded by a
sovereign government other than the Government of Iran. On December 26,
2012, OFAC published a final rule in the Federal Register (77 FR 75845)
that, inter alia, implemented sections 5 and 6 of E.O. 13622 by
amending Sec. 560.211 of the ITSR to add paragraph (c)(2) and a
corresponding note.
Pursuant to its Implementation Day commitment set out in section 4
of Annex II and section 17.4 of Annex V of the JCPOA, the United States
Government has revoked E.O. 13622. Accordingly, OFAC is amending Sec.
560.211 of the ITSR by removing paragraph (c)(2) and the Note to
paragraph (c)(2), which implemented sections 5 and 6 of E.O. 13622,
respectively.
Technical and Conforming Changes
OFAC is also making certain technical and conforming changes to 31
CFR chapter V to reflect the implementation of the USG commitment set
out in section 4.8.1 of Annex II and section 17.3 of Annex V of the
JCPOA. Pursuant to that commitment, on Implementation Day, OFAC is
removing individuals and entities identified in Attachment 3 to Annex
II of the JCPOA from the Specially Designated Nationals and Blocked
Persons List (SDN List), the Foreign Sanctions Evaders List, and/or the
Non-SDN Iran Sanctions Act List, as appropriate. The individuals and
entities being removed from the SDN List include persons that OFAC has
previously identified as blocked pursuant to E.O. 13599 of February 5,
2012 (``Blocking Property of the Government Iran and Iranian Financial
Institutions'') because they meet the definition of the terms
``Government of Iran'' or ``Iranian financial institution.'' These
individuals and entities are marked with an asterisk in Attachment 3 to
Annex II of the JCPOA. Non-U.S. persons will no longer be subject to
secondary sanctions, including under relevant provisions of the Iran
Freedom and Counter-Proliferation Act of 2012 and other applicable
authorities, for engaging in transactions or activities with these
individuals and entities, provided that the transactions do not include
conduct that remains sanctionable or individuals or entities that
remain on the SDN List. However, these individuals and entities being
removed from the SDN List remain persons whose property and interests
in property that are in the U.S., or that are or come within the
possession or control of any U.S. person, are blocked pursuant to E.O.
13599. While OFAC is removing these persons from the SDN List on
Implementation Day, they will now be included on a ``List of Persons
Identified as Blocked Solely Pursuant to Executive Order 13599'' (E.O.
13599 List), which OFAC is making available on its Web site:
www.treasury.gov/resource-center/sanctions/Programs/Pages/13599_list.aspx. To reflect these changes, OFAC is revising notes in
Sec. Sec. 560.211 and 560.304 of the ITSR, adding a new note to Sec.
560.324 of the ITSR, and revising a note to appendix A to 31 CFR
chapter V.
Public Participation
Because the amendment of the ITSR involves 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 and Appendix A to Chapter V
Administrative practice and procedure, Banks, Banking, Carpet,
Foodstuffs, Iran, Letters of credit.
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:
PART 560--IRANIAN TRANSACTIONS AND SANCTIONS REGULATIONS
0
1. The authority citation for part 560 is revised to read as follows:
Authority: 3 U.S.C. 301; 18 U.S.C. 2339B, 2332d; 22 U.S.C.
2349aa-9; 22 U.S.C. 7201-7211; 31 U.S.C. 321(b); 50 U.S.C. 1601-
1651, 1701-1706; Public Law 101-410, 104 Stat. 890 (28 U.S.C. 2461
note); Public Law 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note);
Public Law 111-195, 124 Stat. 1312 (22 U.S.C. 8501-8551); Public Law
112-81, 125 Stat. 1298 (22 U.S.C. 8513a); Public Law 112-158, 126
Stat. 1214 (22 U.S.C. 8701-8795); 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 6659, 3
CFR, 2012 Comp., p. 215; E.O. 13628, 77 FR 62139, 3 CFR, 2012 Comp.,
p. 314.
[[Page 3332]]
Subpart B--Prohibitions
0
2. Amend Sec. 560.211 by removing the word ``or'' from the end of
paragraph (c)(1), removing and reserving paragraph (c)(2), removing the
note to paragraph (c)(2), and revising notes 1 and 2 to paragraphs (a)
through (c) to read as follows:
Sec. 560.211 Prohibited transactions involving blocked property.
* * * * *
Note 1 to paragraphs (a) through (c) of Sec. 560.211: The
names of persons identified by the Office of Foreign Assets Control
(OFAC) as blocked solely pursuant to Executive Order 13599 of
February 5, 2012 (``Blocking Property of the Government Iran and
Iranian Financial Institutions'') (E.O. 13599) because they meet the
definition of the terms ``Government of Iran'' or ``Iranian
financial institution,'' whose property and interests in property
therefore are blocked pursuant to this section, are published in the
Federal Register and incorporated into the ``List of Persons
Identified as Blocked Solely Pursuant to Executive Order 13599'')
(E.O. 13599 List). The E.O. 13599 List is accessible through the
following page on OFAC's Web site: www.treasury.gov/resource-center/sanctions/Programs/Pages/13599_list.aspx. The names of persons
identified as blocked or designated for blocking pursuant to both
this part and one or more other parts of this chapter are published
in the Federal Register and incorporated into OFAC's Specially
Designated Nationals and Blocked Persons List (SDN List) with the
identifier ``[IRAN]'' as well as the relevant identifier(s) for the
other sanctions program(s) pursuant to which the persons' property
and interests in property are blocked. The SDN List is accessible
through the following page on OFAC's Web site: www.treasury.gov/sdn.
Additional information pertaining to the E.O. 13599 List and 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 E.O. 13599 List or
on the SDN List but whose property and interests in property are
nevertheless blocked pursuant to this section. E.O. 13599 blocks the
property and interests in property of the Government of Iran and
Iranian financial institutions as defined in Sec. Sec. 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 E.O.
13599 List or the SDN List.
Note 2 to paragraphs (a) through (c) of Sec. 560.211: The
International Emergency Economic Powers Act (50 U.S.C. 1701-1706),
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
E.O. 13599 List or the SDN List, as appropriate, with the identifier
``[BPI-IRAN].''
* * * * *
Subpart C--General Definitions
0
3. Amend Sec. 560.304 by revising Note 1 to Sec. 560.304 to read as
follows:
Sec. 560.304 Government of Iran.
* * * * *
Note 1 to Sec. 560.304: The names of persons that the Office of
Foreign Assets Control (OFAC) has determined fall within this
definition are published in the Federal Register and incorporated
into one of two lists maintained by OFAC. First, the names of
persons identified as blocked solely pursuant to Executive Order
13599 of February 5, 2012 (``Blocking Property of the Government
Iran and Iranian Financial Institutions'') (E.O. 13599) and Sec.
560.211 because they meet the definition of the term ``Government of
Iran'' are incorporated into the ``List of Persons Identified as
Blocked Solely Pursuant to Executive Order 13599'') (E.O. 13599
List). The E.O. 13599 List is accessible through the following page
on OFAC's Web site: www.treasury.gov/resource-center/sanctions/Programs/Pages/13599_list.aspx. Second, the names of persons
identified as blocked pursuant to E.O. 13599 and Sec. 560.211 who
are also blocked pursuant to one or more other parts of this chapter
are incorporated into OFAC's Specially Designated Nationals and
Blocked Persons List (SDN List) with the identifier ``[IRAN]'' as
well as the relevant identifier(s) for the other sanctions
program(s) pursuant to which the persons' property and interests in
property are blocked. The SDN List is accessible through the
following page on the OFAC'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 E.O. 13599 List or the SDN List.
* * * * *
0
4. Section 560.324 is amended by adding Notes 1 and 2 to Sec. 560.324
to read as follows:
Sec. 560.324 Iranian financial institution.
* * * * *
Note 1 to Sec. 560.324: The names of persons that the Office of
Foreign Assets Control (OFAC) has determined fall within this
definition are published in the Federal Register and incorporated
into one of two lists maintained by the OFAC. First, the names of
persons identified as blocked solely pursuant to Executive Order
13599 of February 5, 2012 (``Blocking Property of the Government
Iran and Iranian Financial Institutions'') (E.O. 13599) and Sec.
560.211 because they meet the definition of the term ``Iranian
financial institution'' are incorporated into the ``List of Persons
Identified as Blocked Solely Pursuant to Executive Order 13599'')
(E.O. 13599 List). The E.O. 13599 List is accessible through the
following page on OFAC's Web site: www.treasury.gov/resource-center/sanctions/Programs/Pages/13599_list.aspx. Second, the names of
persons identified as blocked pursuant to E.O. 13599 and Sec.
560.211 who are also blocked pursuant to one or more other parts of
this chapter are incorporated into OFAC's Specially Designated
Nationals and Blocked Persons List (SDN List) with the identifier
``[IRAN]'' as well as the relevant identifier(s) for the other
sanctions program(s) pursuant to which the persons' property and
interests in property are blocked. The SDN List is accessible
through the following page on OFAC's Web site: www.treasury.gov/sdn.
However, the property and interests in property of persons falling
within the definition of the term Iranian financial institution 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 E.O. 13599 List or the SDN List.
Note 2 to Sec. 560.324: 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 Iranian financial
institution.
Subpart D--Interpretations
0
5. Amend Sec. 560.405 by removing the word ``and'' at the end of
paragraph (d), removing the period at the end of paragraph (e) and
adding ``; and'' in its place, and adding paragraph (f) to read as
follows:
Sec. 560.405 Transactions ordinarily incident to a licensed
transaction authorized.
* * * * *
(f) Letter of credit services relating to transactions authorized
in Sec. 560.534. See Sec. 560.535(a).
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
6. Add Sec. 560.534 to subpart E to read as follows:
Sec. 560.534 Importation into the United States of, and dealings in,
certain foodstuffs and carpets authorized.
(a) The importation into the United States, from Iran or a third
country, of the following goods of Iranian origin is authorized:
(1) Foodstuffs intended for human consumption that are classified
under chapters 2-23 of the Harmonized Tariff Schedule of the United
States;
(2) Carpets and other textile floor coverings and carpets used as
wall hangings that are classified under chapter 57 or heading
9706.00.0060 of the Harmonized Tariff Schedule of the United States.
[[Page 3333]]
(b) United States persons, wherever located, are authorized to
engage in transactions or dealings in or related to the categories of
Iranian-origin goods described in paragraph (a) of this section,
provided that the transaction or dealing does not involve or relate to
goods, technology, or services for exportation, reexportation, sale, or
supply, directly or indirectly, 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, other than
services described in Sec. 560.405 (``Transactions ordinarily incident
to a licensed transaction authorized'') and transfers of funds
described in Sec. 560.516 (``Transfers of funds involving Iran'').
(c) This general license does not authorize the importation into
the United States of goods that are under seizure or detention by the
Department of Homeland Security, as of January 21, 2016, pursuant to
Customs regulations or other applicable provisions of law, until any
applicable penalties, charges, duties, or other conditions are
satisfied. This general license does not authorize the importation into
the United States of goods for which forfeiture proceedings have
commenced or of goods that have been forfeited to the U.S. Government,
other than through U.S. Customs and Border Protection disposition,
including by selling at auction.
(d) Iranian accounts. Nothing in this section authorizes debits or
credits to Iranian accounts, as defined in Sec. 560.320.
0
7. Add Sec. 560.535 to subpart E to read as follows:
Sec. 560.535 Letters of credit and brokering services relating to
certain foodstuffs and carpets.
(a) Purchases from Iran or the Government of Iran or certain other
blocked persons. United States depository institutions are authorized
to issue letters of credit in favor of a beneficiary in 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 to pay for purchases from Iran or the Government of Iran
of the categories of Iranian-origin goods described in Sec.
560.534(a), provided that such letters of credit are not advised,
negotiated, paid, or confirmed by 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.
(b) Transactions or dealings in Iranian-origin goods located in
third countries, other than purchases from the Government of Iran or
certain other blocked persons. United States depository institutions
are authorized to issue, advise, negotiate, or confirm letters of
credit to pay for transactions in or related to Iranian-origin goods
described in Sec. 560.534(a) and located in a third-country, other
than purchases 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, provided that such
letters of credit are not issued, advised, negotiated, paid, or
confirmed by 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.
(c) Brokering. United States persons, wherever located, are
authorized to act as brokers for the purchase or sale of the categories
of Iranian-origin goods described in Sec. 560.534(a), provided that
the goods are not for exportation, reexportation, sale, or supply,
directly or indirectly, 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.
(d) Iranian accounts. Nothing in this section authorizes debits or
credits to Iranian accounts, as defined in Sec. 560.320.
Note to Sec. 560.535: See Sec. Sec. 560.304 and 560.313 for
information relating to individuals and entities that are included
within the definition of the term Government of Iran and Sec.
560.324 regarding entities included within the definition of the
term Iranian financial institution. See Sec. 560.516 for
information relating to authorized transfers to Iran by U.S.
depository institutions relating to licensed transactions.
Appendix A to Chapter V--[Amended]
0
8. The authority citation for appendix A to chapter V is revised to
read as follows:
Authority: 3 U.S.C. 301; 8 U.S.C. 1182, 1189; 18 U.S.C. 2339 B;
21 U.S.C. 1901-1908; 22 U.S.C. 287 c; 31 U.S.C. 321(b); 50 U.S.C.
App. 1-44; Public Law 110-286, 122 Stat. 2632 (50 U.S.C. 1701 note);
Public Law 111-195, 124 Stat. 1312 (22 U.S.C. 8501-8551); Public Law
112-81, 125 Stat. 1298 (22 U.S.C. 8513a); Public Law 112-158, 126
Stat. 1214 (22 U.S.C. 8701-8795); Public Law 112-208, 126 Stat.
1502; Public Law 113-278, 128 Stat. 3011 (50 U.S.C. 1701 note).
0
9. 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 (ITSR), only when the property and
interests in property of such persons are also blocked pursuant to
one or more other parts of this chapter. The SDN List entries for
such persons include the identifier ``[IRAN]'' as well as the
relevant identifier(s) for the other sanctions program(s) pursuant
to which the persons' property and interests in property are
blocked. The names of persons identified as blocked solely pursuant
to Executive Order 13599 of February 5, 2012 (``Blocking Property of
the Government Iran and Iranian Financial Institutions'') (E.O.
13599) and Sec. 560.211 of the ITSR because they meet the
definition of the terms Government of Iran or Iranian financial
institution under the ITSR are incorporated into the ``List of
Persons Identified as Blocked Solely Pursuant to Executive Order
13599'' (E.O. 13599 List). The E.O. 13599 List is accessible through
the following page on the Office of Foreign Assets Control's Web
site: www.treasury.gov/resource-center/sanctions/Programs/Pages/13599_list.aspx. U.S. persons are advised to review 31 CFR part 560
prior to engaging in transactions involving persons included on the
E.O. 13599 List or the SDN List with the identifier ``[IRAN].''
Moreover, the prohibitions set forth in the ITSR, and the compliance
obligations, with respect to persons who fall within the definition
of the terms Government of Iran or Iranian financial institution set
forth in Sec. Sec. 560.304 and 560.324 of the ITSR, respectively,
apply regardless of whether such persons are identified on the E.O.
13599 List or the SDN List.
* * * * *
John E. Smith,
Acting Director, Office of Foreign Assets Control.
[FR Doc. 2016-01227 Filed 1-19-16; 4:15 pm]
BILLING CODE 4810-AL-P