Iranian Transactions and Sanctions Regulations, 30335-30338 [2018-13939]
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Federal Register / Vol. 83, No. 125 / Thursday, June 28, 2018 / Rules and Regulations
Executive Order 12988 (Civil Justice
Reform)
This action meets applicable
standards in sections 3(a) and 3(b)(2) of
Executive Order 12988, Civil Justice
Reform, to minimize litigation,
eliminate ambiguity, and reduce
burden.
Executive Order 13045 (Protection of
Children)
The FHWA has analyzed this rule
under Executive Order 13045,
Protection of Children from
Environmental Health Risks and Safety
Risks. The FHWA certifies that this
action would not cause any
environmental risk to health or safety
that might disproportionately affect
children.
Executive Order 12630 (Taking of
Private Property)
The FHWA has analyzed this rule
under Executive Order 12630,
Governmental Actions and Interface
with Constitutionally Protected Property
Rights. The FHWA does not anticipate
that this action would affect a taking of
private property or otherwise have
taking implications under Executive
Order 12630.
Issued on: June 21, 2018.
Brandye L. Hendrickson,
Acting Administrator, Federal Highway
Administration.
National Environmental Policy Act
In consideration of the foregoing, the
FHWA amends 23 CFR part 658, as set
forth below:
The Agency has analyzed this action
for the purpose of the National
Environmental Policy Act of 1969 (42
U.S.C. 4321–4347) and has determined
that this action would not have any
effect on the quality of the environment.
1. The authority citation for part 658
continues to read as follows:
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Regulation Identification Number
A regulation identification number
(RIN) is assigned to each regulatory
action listed in the Unified Agenda of
Federal Regulations. The Regulatory
Information Service Center publishes
the Unified Agenda in April and
October of each year. The RIN contained
in the heading of this document can be
used to cross reference this action with
the Unified Agenda.
Authority: 23 U.S.C. 127 and 315; 49
U.S.C. 31111, 31112, and 31114; sec. 347,
Pub. L. 108–7, 117 Stat. 419; sec. 756, Pub
L. 109–59, 119 Stat. 1219; sec. 115, Pub. L.
109–115, 119 Stat. 2408; 49 CFR 1.48(b)(19)
and (c)(19).
List of Subjects in 23 CFR Part 658
Appendix A to Part 658—National
Network—Federally-Designated Routes
Grants program—transportation,
Highways and roads, Motor carriers.
Route
*
PART 658—TRUCK SIZE AND WEIGHT,
ROUTE DESIGNATIONS—LENGTH,
WIDTH AND WEIGHT LIMITATIONS
2. Amend Appendix A to Part 658 by
adding an entry to the end of the New
York portion of the table to read as
follows:
■
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From
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To
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New York
*
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Sheridan Boulevard (NY 895) ................................................................ I–278 Bruckner Expressway ..........
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[FR Doc. 2018–13903 Filed 6–27–18; 8:45 am]
BILLING CODE 4910–22–P
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 560
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 the President’s
May 8, 2018 decision to end the United
States’ participation in the Joint
Comprehensive Plan of Action (JCPOA)
on Iran’s nuclear program, as outlined
in National Security Presidential
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SUMMARY:
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Memorandum-11 of May 8, 2018
(NSPM–11). Specifically, OFAC is
amending the ITSR to: Amend the
general licenses authorizing the
importation into the United States of,
and dealings in, Iranian-origin carpets
and foodstuffs, as well as related letters
of credit and brokering services, to
narrow the scope of such general
licenses to the wind down of such
activities through August 6, 2018; add a
new general license to authorize the
wind down, through August 6, 2018, of
transactions related to the negotiation of
contingent contracts for activities
eligible for authorization under the
Statement of Licensing Policy for
Activities Related to the Export or Reexport to Iran of Commercial Passenger
Aircraft and Related Parts and Services,
which was rescinded following the
issuance of NSPM–11; and add a new
general license to authorize the wind
down, through November 4, 2018, of
certain transactions relating to foreign
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entities owned or controlled by a United
States person.
DATES: Effective Date: June 27, 2018.
FOR FURTHER INFORMATION CONTACT:
OFAC: 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 Availability
This document and additional
information concerning OFAC are
available on OFAC’s website
(www.treasury.gov/ofac).
Background
On May 8, 2018, the President issued
NSPM–11, which set forth his decision
to end the United States’ participation
in the JCPOA. In NSPM–11, the
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Federal Register / Vol. 83, No. 125 / Thursday, June 28, 2018 / Rules and Regulations
President directed the Secretary of State
and the Secretary of the Treasury to
immediately begin taking steps to reimpose all United States sanctions lifted
or waived in connection with the
JCPOA as expeditiously as possible, and
in no case later than 180 days from the
date of NSPM–11. Today, OFAC is
amending the ITSR, 31 CFR part 560, to
issue wind-down authorizations for
activities involving Iran that were
previously authorized by OFAC in
connection with the U.S. sanctions
relief provided for under the JCPOA. In
conjunction with this action, OFAC has
revoked General License H and General
License I, two authorizations for
activities involving Iran that were
previously issued by OFAC in
connection with the U.S. sanctions
relief provided for under the JCPOA.
On January 16, 2016, OFAC issued
General License H to license certain
transactions relating to foreign entities
owned or controlled by a United States
person. At the time of its issuance,
General License H was posted on
OFAC’s website (www.treasury.gov/
ofac).
Also on January 16, 2016, OFAC
issued a Statement of Licensing Policy
for Activities Related to the Export or
Re-export to Iran of Commercial
Passenger Aircraft and Related Parts
and Services (JCPOA SLP). At the time
of its issuance, the JCPOA SLP was
posted on OFAC’s website
(www.treasury.gov/ofac). Following the
issuance of NSPM–11, OFAC rescinded
the JCPOA SLP and posted an archived
version of the JCPOA SLP on its website
for reference purposes.
On January 21, 2016, OFAC amended
the ITSR to license the importation into
the United States of certain Iranianorigin carpets and foodstuffs, including
pistachios and caviar (81 FR 3330).
Specifically, OFAC added § 560.534 to
the ITSR to authorize by general license
the importation into the United States
of, and dealings in, certain Iranianorigin foodstuffs and carpets from Iran
or a third country. OFAC also added
§ 560.535 to the ITSR to authorize by
general license certain letters of credit
and brokering services relating to
certain Iranian-origin foodstuffs and
carpets.
On March 24, 2016, OFAC issued
General License I to authorize certain
transactions related to the negotiation
of, and entry into, contingent contracts
for activities eligible for authorization
under the JCPOA SLP. At the time of its
issuance, General License I was posted
on OFAC’s website (www.treasury.gov/
ofac).
Today, OFAC is amending the ITSR to
implement the wind-down
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authorizations for the above-referenced
activities involving Iran that were
previously authorized by OFAC
pursuant to the ITSR in connection with
the U.S. sanctions relief provided for
under the JCPOA.
First, OFAC is amending § 560.534 to
narrow the scope of that general license
to authorize, through 11:59 p.m. eastern
daylight time on August 6, 2018, only
the wind down of transactions related to
the importation into the United States
of, and dealings in, certain Iranianorigin foodstuffs and carpets. U.S.
persons will be authorized to engage in
all transactions and activities that are
ordinarily incident and necessary to the
wind down of transactions that were
previously authorized under § 560.534.
After 11:59 p.m. eastern daylight time
on August 6, 2018, no further
transactions are authorized under
amended § 560.534.
OFAC is also amending § 560.535 to
narrow the scope of that general license
to authorize, through 11:59 p.m. eastern
daylight time on August 6, 2018, only
the wind down of transactions related to
letters of credit and brokering services
relating to certain Iranian-origin
foodstuffs and carpets. U.S. persons will
be authorized to engage in all
transactions and activities that are
ordinarily incident and necessary to the
wind down of transactions that were
previously authorized under § 560.535.
After 11:59 p.m. eastern daylight time
on August 6, 2018, no further
transactions are authorized under
amended § 560.535.
In addition, OFAC is adding § 560.536
to authorize, through 11:59 p.m. eastern
daylight time on August 6, 2018, all
transactions and activities that are
ordinarily incident and necessary to the
wind down of transactions related to the
negotiation of contingent contracts for
activities that were, at the time of the
negotiation, eligible for authorization
under the JCPOA SLP. This wind-down
authorization enables U.S. persons to
wind down, through August 6, 2018,
activities that were previously
authorized pursuant to General License
I. In conjunction with this action, OFAC
has revoked General License I and has
posted an archived version of General
License I on its website
(www.treasury.gov/ofac) for reference
purposes. After 11:59 p.m. eastern
daylight time on August 6, 2018, no
further transactions are authorized
under § 560.536.
Finally, OFAC is adding § 560.537 to
authorize, through 11:59 p.m. eastern
standard time on November 4, 2018, all
transactions and activities that are
ordinarily incident and necessary to the
wind down of transactions relating to
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foreign entities owned or controlled by
a United States person that were
previously authorized under General
License H. In conjunction with this
action, OFAC has revoked General
License H and has posted an archived
version of General License H on its
website (www.treasury.gov/ofac) for
reference purposes. After 11:59 p.m.
eastern standard time on November 4,
2018, no further transactions are
authorized under § 560.537.
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, as well as the provisions
of Executive Order 13771, 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, Aircraft, Banks, Banking,
Carpet, Civil aviation, 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
continues to read as follows:
■
Authority: 3 U.S.C. 301; 18 U.S.C. 2339B,
2332d; 22 U.S.C. 2349aa–9; 22 U.S.C. 7201–
7211; 31 U.S.C. 321(b); 50 U.S.C. 1601–1651,
1701–1706; Pub. L. 101–410, 104 Stat. 890
(28 U.S.C. 2461 note); Pub. L. 110–96, 121
Stat. 1011 (50 U.S.C. 1705 note); Pub. L. 111–
195, 124 Stat. 1312 (22 U.S.C. 8501–8551);
Pub. L. 112–81, 125 Stat. 1298 (22 U.S.C.
8513a); Pub. L. 112–158, 126 Stat. 1214 (22
U.S.C. 8701–8795); E.O. 12613, 52 FR 41940,
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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.
Subpart E—Licenses, Authorizations,
and Statements of Licensing Policy
■
2. Revise § 560.534 to read as follows:
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§ 560.534 Winding down of transactions
related to the importation into the United
States of, and dealings in, certain
foodstuffs and carpets.
(a) Except as provided in paragraphs
(b) and (c) of this section, all
transactions and activities that are
ordinarily incident and necessary to the
wind down of the following activities
are authorized through 11:59 p.m.
eastern daylight time on August 6, 2018:
(1) The importation into the United
States, from Iran or a third country, of
the following goods of Iranian origin:
(i) Foodstuffs intended for human
consumption that are classified under
chapters 2–23 of the Harmonized Tariff
Schedule of the United States; and
(ii) 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.
(2) United States persons, wherever
located, engaging in transactions or
dealings in or related to the categories
of Iranian-origin goods described in
paragraph (a)(1) 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’’).
(b) This general license does not
authorize the importation into the
United States of goods that were 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,
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other than through U.S. Customs and
Border Protection disposition, including
by selling at auction.
(c) Nothing in this section authorizes
debits or credits to Iranian accounts, as
defined in § 560.320.
■ 3. Revise § 560.535 to read as follows:
§ 560.535 Winding down of transactions
related to letters of credit and brokering
services relating to certain foodstuffs and
carpets.
(a) Wind down. Except as provided in
paragraph (b) of this section, all
transactions and activities that are
ordinarily incident and necessary to the
wind down of the following activities
are authorized through 11:59 p.m.
eastern daylight time on August 6, 2018:
(1) Purchases from Iran or the
Government of Iran or certain other
blocked persons. United States
depository institutions issuing 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)(1), 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.
(2) 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 issuing,
advising, negotiating, or confirming
letters of credit to pay for transactions
in or related to Iranian-origin goods
described in § 560.534(a)(1) 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.
(3) Brokering. United States persons,
wherever located, acting as brokers for
the purchase or sale of the categories of
Iranian-origin goods described in
§ 560.534(a)(1), provided that the goods
are not for exportation, reexportation,
sale, or supply, directly or indirectly, to
Iran, the Government of Iran, an Iranian
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30337
financial institution, or any other person
whose property and interests in
property are blocked pursuant to
§ 560.211.
(b) Iranian accounts. Nothing in this
section authorizes debits or credits to
Iranian accounts, as defined in
§ 560.320.
Note 1 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.
4. Add § 560.536 to subpart E to read
as follows:
■
§ 560.536 Winding down of transactions
related to the negotiation of contingent
contracts for activities eligible for
authorization under the Statement of
Licensing Policy for Activities Related to
the Export or Re-export to Iran of
Commercial Passenger Aircraft and Related
Parts and Services.
(a) All transactions and activities that
are ordinarily incident and necessary to
the wind down of the following
activities are authorized through 11:59
p.m. eastern daylight time on August 6,
2018: U.S. persons engaging in all
transactions ordinarily incident to the
negotiation of contingent contracts for
activities that were, at the time of the
negotiation, eligible for authorization
under the now-rescinded Statement of
Licensing Policy for Activities Related to
the Export or Re-export to Iran of
Commercial Passenger Aircraft and
Related Parts and Services (JCPOA
SLP).
Note 1 to paragraph (a): OFAC has posted
an archived copy of the JCPOA SLP on its
website (www.treasury.gov/ofac) for reference
purposes.
(b) Nothing in paragraph (a) of this
section authorizes the exportation,
reexportation, sale, or supply, directly
or indirectly, of any goods or technology
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.
(c) For purposes of this section, the
term ‘‘contingent contract’’ means a
contract where the performance of the
contract is made expressly contingent
upon the issuance of a specific license
by the Office of Foreign Assets Control
authorizing the activities to be
performed. For purposes of this section,
the term ‘‘contingent contract’’ includes
executory contracts, executory pro
forma invoices, agreements in principle,
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executory offers capable of acceptance
such as bids or proposals in response to
public tenders, binding memoranda of
understanding, or any other similar
agreement.
■ 5. Add § 560.537 to subpart E to read
as follows:
§ 560.537 Winding down of transactions
relating to foreign entities owned or
controlled by a U.S. person.
(a) Except as provided in paragraph
(c) of this section, all transactions and
activities that are ordinarily incident
and necessary to the wind down of the
following activities are authorized
through 11:59 p.m. eastern standard
time on November 4, 2018: an entity
owned or controlled by a United States
person and established or maintained
outside the United States (a ‘‘U.S.owned or -controlled foreign entity’’)
engaging in transactions, directly or
indirectly, with the Government of Iran
or any person subject to the jurisdiction
of the Government of Iran that would
otherwise be prohibited by § 560.215.
(b) All transactions and activities that
are ordinarily incident and necessary to
the wind down of the following
activities are authorized through 11:59
p.m. eastern standard time on November
4, 2018: A United States person
engaging in the following:
(1) Activities related to the
establishment or alteration of operating
policies and procedures of a United
States entity or a U.S.-owned or
-controlled foreign entity, to the extent
necessary to allow a U.S.-owned or
-controlled foreign entity to engage in
transactions authorized in paragraph (a)
of this section; and
(2) Activities to make available to
those foreign entities that the U.S.
person owns or controls any automated
and globally integrated computer,
accounting, email, telecommunications,
or other business support system,
platform, database, application, or
server necessary to store, collect,
transmit, generate, or otherwise process
documents or information related to
transactions authorized in paragraph (a)
of this section.
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Note 1 to paragraph (b): See § 560.208 for
prohibitions on facilitation by United States
persons, which remain in effect, with the
exception of activities authorized in
paragraph (b) of this section.
(c) Paragraph (a) of this section does
not authorize transactions involving:
(1) The exportation, reexportation,
sale, or supply, directly or indirectly,
from the United States of any goods,
technology, or services prohibited by
§ 560.204 or the reexportation from a
third country of any goods, technology,
or services prohibited by § 560.205;
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(2) Any transfer of funds to, from, or
through a United States depository
institution or a United States-registered
broker or dealer in securities;
(3) Any person on OFAC’s list of
Specially Designated Nationals and
Blocked Persons (SDN List), or any
activity that would be prohibited by any
part of 31 CFR chapter V other than part
560 if engaged in by a United States
person or in the United States;
(4) Any person identified on the List
of Foreign Sanctions Evaders pursuant
to Executive Order 13608;
(5) Any activity involving any item
(including information) subject to the
Export Administration Regulations, 15
CFR parts 730 through 774 (EAR), that
is prohibited by, or otherwise requires a
license under, part 744 of the EAR; or
participation in any transaction
involving a person whose export
privileges have been denied pursuant to
part 764 or 766 of the EAR, without
authorization from the Department of
Commerce;
(6) Any military, paramilitary,
intelligence, or law enforcement entity
of the Government of Iran, or any
official, agent, or affiliate thereof;
(7) Any activity that is sanctionable
under Executive Order 12938 or 13382
(relating to Iran’s proliferation of
weapons of mass destruction and their
means of delivery, including ballistic
missiles); Executive Order 13224
(relating to international terrorism);
Executive Order 13572 or 13582
(relating to Syria); Executive Order
13611 (relating to Yemen); or Executive
Order 13553 or 13606, or section 2 or 3
of Executive Order 13628 (relating to
Iran’s commission of human rights
abuses against its citizens); or
(8) Any nuclear activity involving Iran
that is subject to the procurement
channel established pursuant to
paragraph 16 of the United Nations
Security Council Resolution 2231 (2015)
and Section 6 of Annex IV to the Joint
Comprehensive Plan of Action of July
14, 2015 and that has not been approved
through that procurement channel
process.
(d)(1) For purposes of paragraph (b)(2)
of this section, the term ‘‘automated’’
refers to a computer, accounting, email,
telecommunications, or other business
support system, platform, database,
application, or server that operates
passively and without human
intervention to facilitate the flow of data
between and among the United States
person and its owned or controlled
foreign entities.
(2) For purposes of paragraph (b)(2) of
this section, the term ‘‘globally
integrated’’ refers to a computer,
accounting, email, telecommunications,
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or other business support system,
platform, database, application, or
server that is available to, and in general
use by, the United States person’s global
organization, including the United
States person and its owned or
controlled foreign entities.
(3) Paragraph (b)(2) of this section
does not authorize the use of any
automated computer, accounting, email,
telecommunications, or other business
support system, platform, database,
application, or server in connection
with any transfer of funds to, from, or
through a United States depository
institution or a United States-registered
broker or dealer in securities.
Dated: June 25, 2018.
Andrea Gacki,
Acting Director, Office of Foreign Assets
Control.
[FR Doc. 2018–13939 Filed 6–27–18; 8:45 am]
BILLING CODE 4810–AL–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 100
[Docket Number USCG–2018–0316]
RIN 1625–AA08
Special Local Regulation; Gulf of
Mexico; Sarasota, FL
Coast Guard, DHS.
Temporary final rule.
AGENCY:
ACTION:
The Coast Guard is
establishing a special local regulation on
the waters of the Gulf of Mexico, in the
vicinity of Lido Beach, Florida, during
the 34th Annual Sarasota Powerboat
Grand Prix High Speed Boat Race.
Approximately 35 boats and jet skis,
traveling at speeds in excess of 100
miles per hour are expected to
participate. Additionally, it is
anticipated that 300 spectator vessels
will be present along the race course.
The special local regulation is necessary
to protect the safety of race participants,
participant vessels, spectators, and the
general public on navigable waters of
the United States during the event. The
special local regulation will establish an
enforcement area where all persons and
vessels, except those persons and
vessels participating in the high speed
boat races, are prohibited from entering,
transiting through, anchoring in, or
remaining within without obtaining
permission from the Captain of the Port
St. Petersburg or a designated
representative.
SUMMARY:
E:\FR\FM\28JNR1.SGM
28JNR1
]]>Agencies
[Federal Register Volume 83, Number 125 (Thursday, June 28, 2018)]
[Rules and Regulations]
[Pages 30335-30338]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-13939]
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DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 560
Iranian Transactions and Sanctions Regulations
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Final rule.
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SUMMARY: The Department of the Treasury's Office of Foreign Assets
Control (OFAC) is amending the Iranian Transactions and Sanctions
Regulations (ITSR) to implement the President's May 8, 2018 decision to
end the United States' participation in the Joint Comprehensive Plan of
Action (JCPOA) on Iran's nuclear program, as outlined in National
Security Presidential Memorandum-11 of May 8, 2018 (NSPM-11).
Specifically, OFAC is amending the ITSR to: Amend the general licenses
authorizing the importation into the United States of, and dealings in,
Iranian-origin carpets and foodstuffs, as well as related letters of
credit and brokering services, to narrow the scope of such general
licenses to the wind down of such activities through August 6, 2018;
add a new general license to authorize the wind down, through August 6,
2018, of transactions related to the negotiation of contingent
contracts for activities eligible for authorization under the Statement
of Licensing Policy for Activities Related to the Export or Re-export
to Iran of Commercial Passenger Aircraft and Related Parts and
Services, which was rescinded following the issuance of NSPM-11; and
add a new general license to authorize the wind down, through November
4, 2018, of certain transactions relating to foreign entities owned or
controlled by a United States person.
DATES: Effective Date: June 27, 2018.
FOR FURTHER INFORMATION CONTACT: OFAC: 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 Availability
This document and additional information concerning OFAC are
available on OFAC's website (www.treasury.gov/ofac).
Background
On May 8, 2018, the President issued NSPM-11, which set forth his
decision to end the United States' participation in the JCPOA. In NSPM-
11, the
[[Page 30336]]
President directed the Secretary of State and the Secretary of the
Treasury to immediately begin taking steps to re-impose all United
States sanctions lifted or waived in connection with the JCPOA as
expeditiously as possible, and in no case later than 180 days from the
date of NSPM-11. Today, OFAC is amending the ITSR, 31 CFR part 560, to
issue wind-down authorizations for activities involving Iran that were
previously authorized by OFAC in connection with the U.S. sanctions
relief provided for under the JCPOA. In conjunction with this action,
OFAC has revoked General License H and General License I, two
authorizations for activities involving Iran that were previously
issued by OFAC in connection with the U.S. sanctions relief provided
for under the JCPOA.
On January 16, 2016, OFAC issued General License H to license
certain transactions relating to foreign entities owned or controlled
by a United States person. At the time of its issuance, General License
H was posted on OFAC's website (www.treasury.gov/ofac).
Also on January 16, 2016, OFAC issued a Statement of Licensing
Policy for Activities Related to the Export or Re-export to Iran of
Commercial Passenger Aircraft and Related Parts and Services (JCPOA
SLP). At the time of its issuance, the JCPOA SLP was posted on OFAC's
website (www.treasury.gov/ofac). Following the issuance of NSPM-11,
OFAC rescinded the JCPOA SLP and posted an archived version of the
JCPOA SLP on its website for reference purposes.
On January 21, 2016, OFAC amended the ITSR to license the
importation into the United States of certain Iranian-origin carpets
and foodstuffs, including pistachios and caviar (81 FR 3330).
Specifically, OFAC added 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 also added Sec. 560.535 to the ITSR to authorize by
general license certain letters of credit and brokering services
relating to certain Iranian-origin foodstuffs and carpets.
On March 24, 2016, OFAC issued General License I to authorize
certain transactions related to the negotiation of, and entry into,
contingent contracts for activities eligible for authorization under
the JCPOA SLP. At the time of its issuance, General License I was
posted on OFAC's website (www.treasury.gov/ofac).
Today, OFAC is amending the ITSR to implement the wind-down
authorizations for the above-referenced activities involving Iran that
were previously authorized by OFAC pursuant to the ITSR in connection
with the U.S. sanctions relief provided for under the JCPOA.
First, OFAC is amending Sec. 560.534 to narrow the scope of that
general license to authorize, through 11:59 p.m. eastern daylight time
on August 6, 2018, only the wind down of transactions related to the
importation into the United States of, and dealings in, certain
Iranian-origin foodstuffs and carpets. U.S. persons will be authorized
to engage in all transactions and activities that are ordinarily
incident and necessary to the wind down of transactions that were
previously authorized under Sec. 560.534. After 11:59 p.m. eastern
daylight time on August 6, 2018, no further transactions are authorized
under amended Sec. 560.534.
OFAC is also amending Sec. 560.535 to narrow the scope of that
general license to authorize, through 11:59 p.m. eastern daylight time
on August 6, 2018, only the wind down of transactions related to
letters of credit and brokering services relating to certain Iranian-
origin foodstuffs and carpets. U.S. persons will be authorized to
engage in all transactions and activities that are ordinarily incident
and necessary to the wind down of transactions that were previously
authorized under Sec. 560.535. After 11:59 p.m. eastern daylight time
on August 6, 2018, no further transactions are authorized under amended
Sec. 560.535.
In addition, OFAC is adding Sec. 560.536 to authorize, through
11:59 p.m. eastern daylight time on August 6, 2018, all transactions
and activities that are ordinarily incident and necessary to the wind
down of transactions related to the negotiation of contingent contracts
for activities that were, at the time of the negotiation, eligible for
authorization under the JCPOA SLP. This wind-down authorization enables
U.S. persons to wind down, through August 6, 2018, activities that were
previously authorized pursuant to General License I. In conjunction
with this action, OFAC has revoked General License I and has posted an
archived version of General License I on its website (www.treasury.gov/ofac) for reference purposes. After 11:59 p.m. eastern daylight time on
August 6, 2018, no further transactions are authorized under Sec.
560.536.
Finally, OFAC is adding Sec. 560.537 to authorize, through 11:59
p.m. eastern standard time on November 4, 2018, all transactions and
activities that are ordinarily incident and necessary to the wind down
of transactions relating to foreign entities owned or controlled by a
United States person that were previously authorized under General
License H. In conjunction with this action, OFAC has revoked General
License H and has posted an archived version of General License H on
its website (www.treasury.gov/ofac) for reference purposes. After 11:59
p.m. eastern standard time on November 4, 2018, no further transactions
are authorized under Sec. 560.537.
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, as well as the provisions of Executive Order 13771, 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, Aircraft, Banks, Banking,
Carpet, Civil aviation, 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 continues to read as follows:
Authority: 3 U.S.C. 301; 18 U.S.C. 2339B, 2332d; 22 U.S.C.
2349aa-9; 22 U.S.C. 7201-7211; 31 U.S.C. 321(b); 50 U.S.C. 1601-
1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461
note); Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); Pub. L.
111-195, 124 Stat. 1312 (22 U.S.C. 8501-8551); Pub. L. 112-81, 125
Stat. 1298 (22 U.S.C. 8513a); Pub. L. 112-158, 126 Stat. 1214 (22
U.S.C. 8701-8795); E.O. 12613, 52 FR 41940,
[[Page 30337]]
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.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
2. Revise Sec. 560.534 to read as follows:
Sec. 560.534 Winding down of transactions related to the importation
into the United States of, and dealings in, certain foodstuffs and
carpets.
(a) Except as provided in paragraphs (b) and (c) of this section,
all transactions and activities that are ordinarily incident and
necessary to the wind down of the following activities are authorized
through 11:59 p.m. eastern daylight time on August 6, 2018:
(1) The importation into the United States, from Iran or a third
country, of the following goods of Iranian origin:
(i) Foodstuffs intended for human consumption that are classified
under chapters 2-23 of the Harmonized Tariff Schedule of the United
States; and
(ii) 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.
(2) United States persons, wherever located, engaging in
transactions or dealings in or related to the categories of Iranian-
origin goods described in paragraph (a)(1) 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'').
(b) This general license does not authorize the importation into
the United States of goods that were 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.
(c) Nothing in this section authorizes debits or credits to Iranian
accounts, as defined in Sec. 560.320.
0
3. Revise Sec. 560.535 to read as follows:
Sec. 560.535 Winding down of transactions related to letters of
credit and brokering services relating to certain foodstuffs and
carpets.
(a) Wind down. Except as provided in paragraph (b) of this section,
all transactions and activities that are ordinarily incident and
necessary to the wind down of the following activities are authorized
through 11:59 p.m. eastern daylight time on August 6, 2018:
(1) Purchases from Iran or the Government of Iran or certain other
blocked persons. United States depository institutions issuing 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)(1), 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.
(2) 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
issuing, advising, negotiating, or confirming letters of credit to pay
for transactions in or related to Iranian-origin goods described in
Sec. 560.534(a)(1) 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.
(3) Brokering. United States persons, wherever located, acting as
brokers for the purchase or sale of the categories of Iranian-origin
goods described in Sec. 560.534(a)(1), 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.
(b) Iranian accounts. Nothing in this section authorizes debits or
credits to Iranian accounts, as defined in Sec. 560.320.
Note 1 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.
0
4. Add Sec. 560.536 to subpart E to read as follows:
Sec. 560.536 Winding down of transactions related to the negotiation
of contingent contracts for activities eligible for authorization under
the Statement of Licensing Policy for Activities Related to the Export
or Re-export to Iran of Commercial Passenger Aircraft and Related Parts
and Services.
(a) All transactions and activities that are ordinarily incident
and necessary to the wind down of the following activities are
authorized through 11:59 p.m. eastern daylight time on August 6, 2018:
U.S. persons engaging in all transactions ordinarily incident to the
negotiation of contingent contracts for activities that were, at the
time of the negotiation, eligible for authorization under the now-
rescinded Statement of Licensing Policy for Activities Related to the
Export or Re-export to Iran of Commercial Passenger Aircraft and
Related Parts and Services (JCPOA SLP).
Note 1 to paragraph (a): OFAC has posted an archived copy of the
JCPOA SLP on its website (www.treasury.gov/ofac) for reference
purposes.
(b) Nothing in paragraph (a) of this section authorizes the
exportation, reexportation, sale, or supply, directly or indirectly, of
any goods or technology 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.
(c) For purposes of this section, the term ``contingent contract''
means a contract where the performance of the contract is made
expressly contingent upon the issuance of a specific license by the
Office of Foreign Assets Control authorizing the activities to be
performed. For purposes of this section, the term ``contingent
contract'' includes executory contracts, executory pro forma invoices,
agreements in principle,
[[Page 30338]]
executory offers capable of acceptance such as bids or proposals in
response to public tenders, binding memoranda of understanding, or any
other similar agreement.
0
5. Add Sec. 560.537 to subpart E to read as follows:
Sec. 560.537 Winding down of transactions relating to foreign
entities owned or controlled by a U.S. person.
(a) Except as provided in paragraph (c) of this section, all
transactions and activities that are ordinarily incident and necessary
to the wind down of the following activities are authorized through
11:59 p.m. eastern standard time on November 4, 2018: an entity owned
or controlled by a United States person and established or maintained
outside the United States (a ``U.S.-owned or -controlled foreign
entity'') engaging in transactions, directly or indirectly, with the
Government of Iran or any person subject to the jurisdiction of the
Government of Iran that would otherwise be prohibited by Sec. 560.215.
(b) All transactions and activities that are ordinarily incident
and necessary to the wind down of the following activities are
authorized through 11:59 p.m. eastern standard time on November 4,
2018: A United States person engaging in the following:
(1) Activities related to the establishment or alteration of
operating policies and procedures of a United States entity or a U.S.-
owned or -controlled foreign entity, to the extent necessary to allow a
U.S.-owned or -controlled foreign entity to engage in transactions
authorized in paragraph (a) of this section; and
(2) Activities to make available to those foreign entities that the
U.S. person owns or controls any automated and globally integrated
computer, accounting, email, telecommunications, or other business
support system, platform, database, application, or server necessary to
store, collect, transmit, generate, or otherwise process documents or
information related to transactions authorized in paragraph (a) of this
section.
Note 1 to paragraph (b): See Sec. 560.208 for prohibitions on
facilitation by United States persons, which remain in effect, with
the exception of activities authorized in paragraph (b) of this
section.
(c) Paragraph (a) of this section does not authorize transactions
involving:
(1) The exportation, reexportation, sale, or supply, directly or
indirectly, from the United States of any goods, technology, or
services prohibited by Sec. 560.204 or the reexportation from a third
country of any goods, technology, or services prohibited by Sec.
560.205;
(2) Any transfer of funds to, from, or through a United States
depository institution or a United States-registered broker or dealer
in securities;
(3) Any person on OFAC's list of Specially Designated Nationals and
Blocked Persons (SDN List), or any activity that would be prohibited by
any part of 31 CFR chapter V other than part 560 if engaged in by a
United States person or in the United States;
(4) Any person identified on the List of Foreign Sanctions Evaders
pursuant to Executive Order 13608;
(5) Any activity involving any item (including information) subject
to the Export Administration Regulations, 15 CFR parts 730 through 774
(EAR), that is prohibited by, or otherwise requires a license under,
part 744 of the EAR; or participation in any transaction involving a
person whose export privileges have been denied pursuant to part 764 or
766 of the EAR, without authorization from the Department of Commerce;
(6) Any military, paramilitary, intelligence, or law enforcement
entity of the Government of Iran, or any official, agent, or affiliate
thereof;
(7) Any activity that is sanctionable under Executive Order 12938
or 13382 (relating to Iran's proliferation of weapons of mass
destruction and their means of delivery, including ballistic missiles);
Executive Order 13224 (relating to international terrorism); Executive
Order 13572 or 13582 (relating to Syria); Executive Order 13611
(relating to Yemen); or Executive Order 13553 or 13606, or section 2 or
3 of Executive Order 13628 (relating to Iran's commission of human
rights abuses against its citizens); or
(8) Any nuclear activity involving Iran that is subject to the
procurement channel established pursuant to paragraph 16 of the United
Nations Security Council Resolution 2231 (2015) and Section 6 of Annex
IV to the Joint Comprehensive Plan of Action of July 14, 2015 and that
has not been approved through that procurement channel process.
(d)(1) For purposes of paragraph (b)(2) of this section, the term
``automated'' refers to a computer, accounting, email,
telecommunications, or other business support system, platform,
database, application, or server that operates passively and without
human intervention to facilitate the flow of data between and among the
United States person and its owned or controlled foreign entities.
(2) For purposes of paragraph (b)(2) of this section, the term
``globally integrated'' refers to a computer, accounting, email,
telecommunications, or other business support system, platform,
database, application, or server that is available to, and in general
use by, the United States person's global organization, including the
United States person and its owned or controlled foreign entities.
(3) Paragraph (b)(2) of this section does not authorize the use of
any automated computer, accounting, email, telecommunications, or other
business support system, platform, database, application, or server in
connection with any transfer of funds to, from, or through a United
States depository institution or a United States-registered broker or
dealer in securities.
Dated: June 25, 2018.
Andrea Gacki,
Acting Director, Office of Foreign Assets Control.
[FR Doc. 2018-13939 Filed 6-27-18; 8:45 am]
BILLING CODE 4810-AL-P
