**Billing Code: 3510-33-P**

**DEPARTMENT OF COMMERCE**

**Bureau of Industry and Security**

**15 CFR Parts 742, 744 and 746**

**\[Docket No. 0811241505-81513-01\]**

**RIN 0694-AE50**

License Requirements Policy for Iran and for Certain Weapons of Mass
Destruction Proliferators

**AGENCY:** Bureau of Industry and Security, Commerce

**ACTION:** Interim Final Rule

**SUMMARY:** This rule revises and clarifies the Export Administration
Regulations (EAR) provisions that apply specifically to Iran in order to
promote consistency, reduce redundancy and clarify the role of the
Bureau of Industry and Security (BIS) in connection with the
implementation of United States export control policy towards Iran. It
establishes a new license requirement for reexports of items classified
under ten Export Control Classification Numbers (ECCNs) that previously
did not require a license for reexport to Iran under the EAR. This rule
also imposes license requirements on parties who have been listed as
proliferators of weapons of mass destruction or as supporters of such
proliferators pursuant to Executive Order 13382. BIS is making these
changes to provide greater clarity and consistency with respect to
policies towards Iran and to harmonize BIS license requirements with
Department of the Treasury license requirements regarding proliferators
of weapons of mass destruction.

**DATES:** This rule is effective January 15, 2009

**FOR FURTHER INFORMATION CONTACT:** William Arvin, Regulatory Policy
Division, <warvin@bis.doc.gov> , 202 482 2440 or Anthony Christino,
Foreign Policy Division, <tchristi@bis.doc.gov> 202 482 3241.

**SUPPLEMENTARY INFORMATION:**

**Background**

The EAR imposes license requirements on certain exports and reexports to
Iran. These license requirements apply in addition to any requirements
for authorization to export or reexport to Iran that are imposed by the
Department of the Treasury, Office of Foreign Assets Control (OFAC),
which maintains a comprehensive embargo against Iran, as described in
the Iranian Transactions Regulations (31 CFR Part 560). The EAR license
requirements and licensing policy that apply specifically and expressly
to Iran are in parts 742 and 746 of the EAR. This rule makes changes to
those parts to promote consistency, reduce redundancy and to clarify the
role of the Bureau of Industry and Security (BIS) in connection with the
enforcement of United States export control policy towards Iran. It
establishes a license requirement for reexports of items classified
under ten Export Control Classification Numbers (ECCNs) that previously
did not require a license for reexport to Iran under the EAR. This rule
also adds a new § 744.8 to the EAR that imposes a license requirement on
exports and reexports to parties listed by OFAC in Appendix A to 31 CFR
Chapter V with the bracketed suffix \[NPWMD\].

*Revisions to part 742 -- anti-terrorism (AT) controls*.

Section 742.8 of the EAR describes the license requirements and
licensing policy for items controlled for anti-terrorism (AT) reasons to
Iran. Prior to publication of this rule, reexports of items classified
under ECCNs 2A994, 3A992.a, 5A991.g, 5A992, 6A991, 6A998, 7A994,
8A992.d, .e, .f, and .g, 9A990.a and .b, 9A991.d and .e, were not
subject to license requirements under the EAR when reexported to Iran.
In addition, the items controlled under these ECCNs were not treated as
"controlled U.S. content" when incorporated into foreign made items
being exported from abroad to Iran for purposes of determining whether
the foreign made item had sufficient "controlled U.S. content" to be
subject to the EAR. This rule revises § 742.8 to make those items
subject to reexport license requirements under the EAR and to treat them
as "controlled U.S. content."

This rule also adds ECCNs 1C350, 1C355 and 1C395 to the license
requirements paragraph in § 742.8. These three ECCNs contain license
requirements that state "anti-terrorism" as a reason for control and
that apply to Iran either by name or as part of Country Group E:1.
However, prior to publication of this rule, these three ECCNs were not
referenced in § 742.8(a). Adding these three ECCNs § 742.8(a) make that
section consistent with BIS's policy of stating all anti-terrorism
license requirements that apply to Iran in that section.

In addition, this rule moves all descriptions of transactions that are
subject to the requirements of section 6(j) of the Export Administration
Act and those that are subject to the requirements of section 6(a) of
that Act from Supplement No. 2 to part 742 into § 742.8(a)(4). Section
6(j) applies when the Secretary of State determines that the export of
an item could make a significant contribution to the military potential
of a country that has repeatedly provided support for acts of
international terrorism, or could enhance the ability of such country to
support acts of international terrorism. BIS may not issue a license for
transactions subject to section 6(j) without giving 30 days advance
notice to certain committees of Congress. License applications for items
controlled to designated terrorist-supporting countries under Section
6(a) are also reviewed to determine whether section 6(j) applies.

Finally, this rule removes all references to "contract sanctity" dates
applicable to Iran from Supplement No. 2 to part 742. The "contract
sanctity" dates refer to the dates on which reports that are
prerequisites to imposing, expanding or extending foreign policy
controls pursuant to Section 6 of the Export Administration Act were
delivered to Congress. Transactions to fulfill contracts entered into
prior to those dates may be subject to the rules that were in effect
prior to delivery of the report. Removing the dates from Supplement No.
2 to Part 742 has no effect on the rights of any person to assert that a
transaction is subject to earlier rules.

*Revisions to part 744 -- Control policy: end-use and end-user based*

This rule adds a new § 744.8, which imposes a license requirement on
certain parties whom the Department of the Treasury, Office of Foreign
Assets Control (OFAC) has listed in Appendix A to 31 CFR Chapter V with
the bracketed suffix \[NPWMD\]. OFAC also provides lists of these
parties in a variety of data formats at
[http://www.treas.gov/offices/enforcement/ofac/sdn/index.shtml]{.underline}.
OFAC lists such parties pursuant to its authority under Executive Order
13382 of June 28, 2005. Executive Order 13382 blocks the property and
interests in property of certain parties determined to be weapons of
mass destruction proliferators or their supporters.

This rule complements OFAC's regulatory authority under Executive Order
13382. For transactions requiring authorization from both OFAC and BIS
(pursuant to Section 744.8 of the EAR), authorization from OFAC will
serve to meet EAR license requirements. However, for exports and
reexports involving listed parties in situations where OFAC
authorization is not required and where the item being exported or
reexported is subject to the Export Administration Regulations, a BIS
license must be obtained.

This rule also makes a technical and conforming change by referring to
the new § 744.8 in § 744.1(a).

*Revisions to part 746 -- Embargoes and Special Controls*

This rule removes from the introductory paragraph of § 746.7, the
extensive discussion of the authority of the Department of the Treasury
to implement comprehensive trade sanctions against Iran. That discussion
has no legal effect for purposes of the EAR and could be a source of
confusion.

As noted in the discussion of the revisions to part 742 described above,
prior to publication of this rule, reexports of items classified under
ECCNs 2A994, 3A992.a, 5A991.g, 5A992, 6A991, 6A998, 7A994, 8A992.d, .e,
.f, and .g, 9A990.a and .b, 9A991.d and .e, were not subject to license
requirements under the EAR when being reexported to Iran. This rule
revises § 746.7 to make those items subject to reexport license
requirements.

This rule also adds ECCNs 0A982, 0A985, 0E982, 1C355, 1C395, 2A994,
2D994, 2E994 to the license requirements paragraph in § 746.7. These
nine ECCNs contain license requirements that are not based on the
Commerce Country Chart, but that apply to Iran either by name or as part
of Country Group E:1. BIS's policy is to state all of the Commerce
Control List based license requirements that apply to Iran in § 746.7.
However, prior to publication of this rule, these nine ECCNs were not
referenced in the license requirements paragraph in § 746.7. Adding
these eight ECCNs to that license requirements paragraph makes § 746.7
consistent with BIS's policy of stating all license requirements that
apply to Iran in that section.

In addition, this rule removes the definition of "U.S. person" from
§ 746.7 because that term in not used with respect to any BIS license
requirements in that section.

This rule also adds a statement of licensing policy to § 746.7
indicating that applications for licenses for transactions for
humanitarian reasons or for the safety of civil aviation and safe
operation of U.S-origin aircraft will be considered on a case-by-case
basis. Applications for other purposes generally will be denied. This
addition aligns § 746.7 more closely with OFAC's Iranian Transactions
Regulations. 

Finally this rule revises for clarity and precision a prohibition
against exporting or reexporting items that are subject to the EAR if
the transaction is prohibited by the Iranian Transactions Regulations
and not authorized by OFAC that, prior to publication of this rule
appeared in the introductory paragraph of § 746.7. This rule also moves
that statement to its own designated paragraph. BIS is making this
change to place emphasis on that prohibition with a view towards
enhancing its enforceability.

Consistent with the provisions of section 6 of the Export Administration
Act of 1979, as amended (EAA), a foreign policy report was submitted to
Congress on January 9, 2009, notifying Congress of the imposition of
foreign policy-based licensing requirements reflected in this rule.

Although the EAA expired on August 20, 2001, the President, through
Executive Order 13222 of August 17, 2001, 3 CFR, 2001 Comp., p. 783
(2002), which has been extended by successive Presidential Notices, the
most recent being that of July 23, 2008, 73 FR 43603 (July 25, 2008),
has continued the EAR in effect under the International Emergency
Economic Powers Act.

**Rulemaking Requirements**

1\. This final rule has been determined to be not significant for
purposes of Executive Order 12866.

2\. Notwithstanding any other provision of law, no person is required to
respond to, nor shall any person be subject to a penalty for failure to
comply with a collection of information, subject to the requirements of
the Paperwork Reduction Act, unless that collection of information
displays a currently valid Office of Management and Budget Control
Number. This rule involves a collection of information that has been
approved by the OMB under control number 0694-0088, "Simplified Network
Application Processing + System (SNAP+) and the Multipurpose Export
License Application" which carries a burden hour estimate of 58 minutes
to prepare and submit form BIS-748. Miscellaneous and recordkeeping
activities account for 12 minutes per submission. BIS believes that this
rule will make no change in the number of submissions under this
collection or in the estimated burden. Send comments regarding these
burden estimates or any other aspect of these collections of
information, including suggestions for reducing the burden, to Jasmeet
Seehra Office of Management and Budget, by e-mail at
<jseehra@omb.eop.gov> or by fax to (202) 395‑7285; and to the Regulatory
Policy Division, Bureau of Industry and Security, Department of
Commerce, Room 2705, 14^th^ Street and Pennsylvania Ave., NW,
Washington, DC 20230.

3\. This rule does not contain policies with Federalism implications as
that term is defined in Executive Order 13132.

4\. The provisions of the Administrative Procedure Act (5 U.S.C. 553)
requiring notice of proposed rulemaking, the opportunity for public
participation, and a delay in effective date, are inapplicable because
this regulation involves a military or foreign affairs function of the
United States (see 5 U.S.C. 553(a)(1)). Further, no other law requires
that a notice of proposed rulemaking and an opportunity for public
comment be given for this rule. Because a notice of proposed rulemaking
and an opportunity for public comment are not required to be given for
this rule by 5 U.S.C. 553, or by any other law, the analytical
requirements of the Regulatory Flexibility Act, 5 U.S.C. 601 *et*.
*seq*, are not applicable.

**List of Subjects**

**15 CFR Part 742**

Exports, Terrorism

**15 CFR Part 744**

Exports, Reporting and recordkeeping requirements, Terrorism.

**15 CFR Part 746**

Exports, Reporting and recordkeeping requirements.

Accordingly, the Export Administration Regulations (15 CFR parts 730 --
774) are amended as follows.

**PART 742--\[AMENDED\]**

1\. The authority citation for part 742 continues to read as follows:

**Authority:** 50 U.S.C. app. 2401 [et seq]{.underline}.; 50 U.S.C. 1701
[et seq]{.underline}.; 22 U.S.C. 3201 [et seq]{.underline}.; 42 U.S.C.
2139a; 22 U.S.C. 7201 [et seq.]{.underline}; 22 U.S.C. 7210; Sec 1503,
Pub. L. 108-11, 117 Stat. 559; E.O. 12058, 43 FR 20947, 3 CFR, 1978
Comp., p. 179; E.O. 12851, 58 FR 33181, 3 CFR, 1993 Comp., p. 608; E.O.
12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 13026, 61 FR 58767,
3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp.,
p. 783; Presidential Determination 2003-23 of May 7, 2003, 68 FR 26459,
May 16, 2003; Notice of July 23, 2008, 73 FR 43603 (July 25, 2008);
Notice of November 10, 2008, 73 FR 67097 (November 12, 2008).

2\. Revise § 742.8(a)(1), remove and reserve § 742.8(a)(2), and revise §
742.8(a)(4) and § 742.8(c) to read as follows:

**§ 742.8 Anti-terrorism: Iran.**

\(a\) *License Requirements.*

\(1\) A license is required for anti-terrorism purposes to export or
reexport to Iran any item for which AT column 1 or AT column 2 is
indicated in the Country Chart column of the applicable ECCN or any item
described in ECCNs 1C350, 1C355, 1C395, 2A994, 2D994 and 2E994. See
paragraph (a)(5) of this section for controls maintained by the
Department of the Treasury. See § 746.7 of the EAR for additional EAR
license requirements that apply to Iran.

\(2\) \[RESERVED\]

\* \* \* \* \*

\(4\) In support of U.S. foreign policy applicable to
terrorism-supporting countries, the EAR imposes anti-terrorism license
requirements on exports and reexports to Iran pursuant to sections 6(j)
and 6(a) of the Export Administration Act.

\(i\) *Section 6(j) anti-terrorism controls*. Section 6(j) requirements
apply to all exports and reexports destined to the police, military or
other sensitive end-users of items listed on the Commerce Control List
(Supp. No. 1 to part 774 of the EAR) for which any listed reason for
control in the applicable ECCN is NS (national security), CB (chemical
or biological weapons proliferation), MT (missile proliferation), NP
(nuclear weapons proliferation) or an Export Control Classification
Number ending in "18" (military related items). BIS may not issue a
license for a transaction subject to section 6(j) controls until 30 days
after the notification described in Section 6(j)(2) of the Export
Administration Act is delivered to the committees of Congress specified
in that section. License applications for all other items controlled
under section 6(a) are also reviewed to determine whether section 6(j)
applies.

\(ii\) *Section 6(a) anti-terrorism controls*. Section 6(a) requirements
apply to all exports and reexports regardless of the end user of items
described in paragraph (a)(1) of this section.

\* \* \*

\(c\) *Contract Sanctity*. Section 6(f) of the Export Administration Act
requires that a report be delivered to Congress before foreign policy
based export controls are imposed, expanded or extended. Consistent with
section 6(p) of the Export Administration Act, certain exports or
reexports in fulfillment of contracts entered into before such delivery
of the report applicable to a particular license requirement or
licensing policy may be subject to the license requirements and
licensing policy that were in force before the report was delivered.
License applicants who wish to have their application considered under
such pre-existing requirements or policy must include evidence of the
pre-existing contract with their license applications.

\* \* \* \* \*

**Supplement No. 2 to Part 742 -- \[AMENDED\]**

3\. Amend Supplement No. 2 to Part 742 by:

■ a. Removing "Iran," from the heading;

■ b. Removing "Iran," from paragraph (a), paragraph (b)(1) and paragraph
(b)(3), introductory text;

■ c. Removing the phrase "for Iran, items in paragraphs (c)(6) through
(c)(44) of this Supplement;" from paragraph (b)(3)(ii);

■ d. Removing "Iran," and "742.8," from the first sentence of paragraph
(c), introductory text;

■ e. Removing "Iran" from each place that it appears in the second
sentence of paragraph (c), introductory text;

■ f. Removing the third, fourth and fifth sentences of paragraph (c)
introductory text;

■ g. Removing and reserving paragraph (c)(1)(i);

■ h. Removing "Iran," from the first sentence of paragraph (c)(2) and
the phrase "Iran and" from the second sentence of paragraph (c)(2);

■ i. Removing "Iran," from the first sentence of paragraph (c)(3);

■ j. Removing "Iran and" from the second sentence of paragraph (c)(3);

■ k. Removing and reserving paragraphs (c)(4)(i), (c)(5)(i), (c)(6)(i),
(c)(7)(i), (c)(8)(i), (c)(9)(i), (c)(10)(i), (c)(11)(i), (c)(12)(i)
(c)(13)(i), (c)(14)(i), (c)(15)(i), (c)(16)(i), (c)(17)(i), (c)(18)(i),
(c)(19)(i), (c)(20)(i), (c)(21)(i), (c)(22)(i), (c)(23)(i), (c)(24)(i),
(c)(25)(ii), (c)(26)(i)(A);

■ l. Removing "Iran," from paragraph (c)(27); and

■ m. Removing and reserving paragraphs (c)(27)(i), (c)(28)(i),
(c)(29)(i), (c)(30)(i), (c)(31)(i), (c)(32)(i), (c)(33)(i), (c)(34)(i),
(c)(35)(i), (c)(36)(i), (c)(37)(i), (c)(38)(i), (c)(39)(i)(A),
(c)(39)(ii)(A), (c)(40)(i), (c)(41)(i), (c)(42)(i), (c)(43)(i) and
(c)(44)(i).

**PART 744 -- \[AMENDED\]**

4\. The authority citation for part 744 continues to read as follows:

**Authority:** 50 U.S.C. app. 2401 [et seq]{.underline}.; 50 U.S.C. 1701
[et seq]{.underline}.; 22 U.S.C. 3201 [et seq]{.underline}.; 42 U.S.C.
2139a; 22 U.S.C. 7201 [et seq.]{.underline}; 22 U.S.C. 7210; E.O. 12058,
43 FR 20947, 3 CFR, 1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 3 CFR,
1993 Comp., p. 608; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p. 950;
E.O. 12947, 60 FR 5079, 3 CFR, 1995 Comp., p. 356; E.O. 13026, 61 FR
58767, 3 CFR, 1996 Comp., p. 228; E.O. 13099, 63 FR 45167, 3 CFR, 1998
Comp., p. 208; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O.
13224, 66 FR 49079, 3 CFR, 2001 Comp., p. 786; Notice of July 23, 2008,
73 FR 43603 (July 25, 2008); Notice of November 10, 2008, 73 FR 67097
(November 12, 2008).

5\. In § 744.1 revise the fifth sentence of paragraph (a)(1) and add a
new sentence between the current fifth and sixth sentences to read as
follows:

**§ 744.1 General provisions**

(a)(1)

\* \* \*

Section 744.7 prohibits exports and reexports of certain items for
certain aircraft and vessels. Section 744.8 prohibits exports and
reexports without authorization to certain parties who have been
designated as proliferators of weapons of mass destruction or as
supporters of such proliferators pursuant to Executive Order 13382.

\* \* \* \* \*

6\. Add a § 744.8 to read as follows:

**§ 744.8 Restrictions on exports and reexports to persons designated
pursuant to Executive Order 13382 -- Blocking Property of Weapons of
Mass Destruction Proliferators and Their Supporters**

BIS maintains restrictions on exports and reexports to persons
designated in or pursuant to Executive Order 13382 of June 28, 2005
(Weapons of Mass Destruction Proliferators and their Supporters).
Executive Order 13382 blocks the property and interests in property of
persons named in or designated pursuant to Executive Order 13382 in the
United States or that comes within the United States or within the
possession or control of United States persons. The parties whose
property or interests in property are blocked pursuant to Executive
Order 13382 are identified by the Department of the Treasury, Office of
Foreign Assets Control (OFAC) in Appendix A to 31 CFR Chapter V with the
bracketed suffix \[NPWMD\]. This section imposes export and reexport
license requirements for items subject to the EAR on those same parties
to further the objectives of Executive Order 13382.

\(a\) *License requirement(s) and authorization*.

\(1\) *EAR license requirement*. A license is required for the export or
reexport of any item subject to the EAR to any party listed in Appendix
A to 31 CFR Chapter V with the bracketed suffix \[NPWMD\].

\(2\) *BIS authorization*. (i) To avoid duplication, U.S. persons are
not required to seek separate authorization from BIS for an export or
reexport to a party listed in Appendix A to 31 CFR Chapter V with the
bracketed suffix \[NPWMD\] of an item subject to the EAR. If OFAC
authorizes an export from the United States or an export or reexport by
a U.S. person to a party listed in Appendix A to 31 CFR Chapter V with
the bracketed suffix \[NPWMD\], such authorization constitutes
authorization for purposes of the EAR as well.

\(ii\) U.S. persons must seek authorization from BIS for the export or
reexport to a party listed in Appendix A to 31 CFR Chapter V with the
bracketed suffix \[NPWMD\] of any item subject to the EAR that is not
subject to OFAC's regulatory authority pursuant to Executive Order
13382.

\(iii\) Non-U.S. persons must seek authorization from BIS for any export
from abroad or reexport to a party listed in Appendix A to 31 CFR
Chapter V with the bracketed suffix \[NPWMD\] of any item subject to the
EAR.

\(iv\) Any export or reexport to a party listed in Appendix A to 31 CFR
Chapter V with the bracketed suffix \[NPWMD\] of any item subject to the
EAR and not authorized by OFAC is a violation of the EAR.

\(v\) Any export or reexport by a U.S. person to a party listed in
Appendix A to 31 CFR Chapter V with the bracketed suffix \[NPWMD\] of
any item subject to the EAR that is not subject to regulation by OFAC
and not authorized by BIS is a violation of the EAR. Any export from
abroad or reexport by a non-U.S. person to a party listed in Appendix A
to 31 CFR Chapter V with the bracketed suffix \[NPWMD\] of any item
subject to the EAR and not authorized by BIS is a violation of the EAR.

\(3\) *Relation to other EAR license requirements*. The license
requirements in this section supplement any other requirements set forth
elsewhere in the EAR.

\(b\) *License exceptions*. No license exceptions are available for the
EAR license requirements imposed in this section.

\(c\) *Licensing policy*. Applications for EAR licenses required by this
section generally will be denied. You should consult with OFAC
concerning transactions subject to OFAC licensing requirements.

\(d\) *Contract sanctity*. Contract sanctity provisions are not
available for license applications reviewed under this section.

**PART 746 B \[AMENDED\]**

7\. The authority citation for part 746 continues to read as follows:

**Authority:** 50 U.S.C. app. 2401 [et seq]{.underline}.; 50 U.S.C. 1701
[et seq]{.underline}.; 22 U.S.C. 287c; Sec 1503, Pub. L. 108-11, 117
Stat. 559; 22 U.S.C. 6004; 22 U.S.C. 7201 [et seq.]{.underline}; 22
U.S.C. 7210; E.O. 12854, 58 FR 36587, 3 CFR, 1993 Comp., p. 614; E.O.
12918, 59 FR 28205, 3 CFR, 1994 Comp., p. 899; E.O. 13222, 3 CFR, 2001
Comp., p. 783; Presidential Determination 2003-23 of May 7, 2003, 68 FR
26459, May 16, 2003; Presidential Determination 2007-7 of December 7,
2006, 72 FR 1899 (January 16, 2007); Notice of July 23, 2008, 73 FR
43603 (July 25, 2008).

8\. Revise \' 746.7 to read as follows:

**\' 746.7 Iran**

The Treasury Department's Office of Foreign Assets Control (OFAC)
administers a comprehensive trade and investment embargo against Iran.
This embargo includes prohibitions on exports and certain reexport
transactions involving Iran, including transactions dealing with items
subject to the EAR. These prohibitions are set forth in OFAC's Iranian
Transactions Regulations (31 CFR part 560). In addition, BIS maintains
licensing requirements on exports and reexports to Iran under the EAR as
described in paragraph (a)(1) of this section or elsewhere in the EAR
(*See*, *e*.*g*., § 742.8 -- Anti-terrorism: Iran).

\(a\) *License requirements*.

\(1\) *EAR license requirements*. A license is required under the EAR to
export or reexport to Iran any item on the CCL containing a CB Column 1,
CB Column 2, CB Column 3, NP Column 1, NP Column 2, NS Column 1, NS
Column 2, MT Column 1, RS Column 1, RS Column 2, CC Column 1, CC Column
2, CC Column 3, AT Column 1 or AT Column 2 in the Country Chart Column
of the License Requirements section of an ECCN or classified under ECCNs
0A980, 0A982, 0A983, 0A985, 0E982, 1C355, 1C395, 1C980, 1C981, 1C982,
1C983, 1C984, 2A994, 2D994, 2E994, 5A980, 5D980, or 5E980.

\(2\) *BIS authorization*. To avoid duplication, exporters or
reexporters are not required to seek separate authorization from BIS for
an export or reexport subject both to the EAR and to OFAC\'s Iranian
Transactions Regulations. Therefore, if OFAC authorizes an export or
reexport, such authorization is considered authorization for purposes of
the EAR as well. Transactions that are not subject to OFAC regulatory
authority may require BIS authorization.

\(b\) *Licensing Policy*. Applications for licenses for transactions for
humanitarian reasons or for the safety of civil aviation and safe
operation of U.S-origin aircraft will be considered on a case-by-case
basis. Licenses for other purposes generally will be denied.

\(c\) *License Exceptions*. No license exceptions may be used for
exports or reexports to Iran.

\(d\) *EAR Anti-terrorism controls*. The Secretary of State has
designated Iran as a country that has repeatedly provided support for
acts of international terrorism. Anti-terrorism license requirements and
licensing policy regarding Iran are set forth in § 742.8 of the EAR.

\(e\) *Prohibition on exporting or reexporting EAR items without
required OFAC authorization*. No person may export or reexport any item
that is subject to the EAR if such transaction is prohibited by the
Iranian Transactions Regulations (31 CFR part 560) and not authorized by
OFAC. The prohibition of this paragraph (e) applies whether or not the
EAR requires a license for the export or reexport.

Dated:

Christopher R. Wall

Assistant Secretary for Export Administration