[Federal Register Volume 74, Number 10 (Thursday, January 15, 2009)]
[Rules and Regulations]
[Pages 2355-2358]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-726]


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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.

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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, <a href="/cdn-cgi/l/email-protection#47302635312e2907252e346923282469202831"><span class="__cf_email__" data-cfemail="9aedfbe8ecf3f4daf8f3e9b4fef5f9b4fdf5ec">[email protected]</span></a>, 202 482 2440 or Anthony Christino, 
Foreign Policy Division, <a href="/cdn-cgi/l/email-protection#95e1f6fde7fce6e1fcd5f7fce6bbf1faf6bbf2fae3"><span class="__cf_email__" data-cfemail="95e1f6fde7fce6e1fcd5f7fce6bbf1faf6bbf2fae3">[email protected]</span></a> 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 
Sec.  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 Sec.  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 Sec.  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 Sec.  742.8(a). Adding these three ECCNs 
Sec.  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 Sec.  
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 Sec.  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. 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

[[Page 2356]]

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 Sec.  744.8 in Sec.  744.1(a).

Revisions to Part 746--Embargoes and Special Controls

    This rule removes from the introductory paragraph of Sec.  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 Sec.  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 Sec.  746.7. 
These eight 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 Sec.  
746.7. However, prior to publication of this rule, these eight ECCNs 
were not referenced in the license requirements paragraph in Sec.  
746.7. Adding these eight ECCNs to that license requirements paragraph 
makes Sec.  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 Sec.  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 Sec.  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 Sec.  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 Sec.  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 
<a href="/cdn-cgi/l/email-protection#cba1b8aeaea3b9aa8ba4a6a9e5aea4bbe5aca4bd"><span class="__cf_email__" data-cfemail="f19b829494998390b19e9c93df949e81df969e87">[email protected]</span></a> or by fax to (202) 395-7285; and to the Regulatory 
Policy Division, Bureau of Industry and Security, Department of 
Commerce, Room 2705, 14th 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.

0
Accordingly, the Export Administration Regulations (15 CFR parts 730-
774) are amended as follows.

PART 742--[AMENDED]

0
1. The authority citation for part 742 continues to read as follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22 
U.S.C. 7210; Sec 1503, Public Law 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).


[[Page 2357]]



0
2. Revise Sec.  742.8(a)(1), remove and reserve Sec.  742.8(a)(2), and 
revise Sec.  742.8(a)(4) and Sec.  742.8(c) to read as follows:


Sec.  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 Sec.  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]

0
3. Amend Supplement No. 2 to Part 742 by:
0
a. Removing ``Iran,'' from the heading;
0
b. Removing ``Iran,'' from paragraph (a), paragraph (b)(1) and 
paragraph (b)(3), introductory text;
0
c. Removing the phrase ``for Iran, items in paragraphs (c)(6) through 
(c)(44) of this Supplement;'' from paragraph (b)(3)(ii);
0
d. Removing ``Iran,'' and ``742.8,'' from the first sentence of 
paragraph (c), introductory text;
0
e. Removing ``Iran'' from each place that it appears in the second 
sentence of paragraph (c), introductory text;
0
f. Removing the third, fourth and fifth sentences of paragraph (c) 
introductory text;
0
g. Removing and reserving paragraph (c)(1)(i);
0
h. Removing ``Iran,'' from the first sentence of paragraph (c)(2) and 
the phrase ``Iran and'' from the second sentence of paragraph (c)(2);
0
i. Removing ``Iran,'' from the first sentence of paragraph (c)(3);
0
j. Removing ``Iran and'' from the second sentence of paragraph (c)(3);
0
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);
0
l. Removing ``Iran,'' from paragraph (c)(27); and
0
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]

0
4. The authority citation for part 744 continues to read as follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
22 U.S.C. 3201 et seq.; 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 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).


0
5. In Sec.  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:


Sec.  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.
* * * * *

0
6. Add a Sec.  744.8 to read as follows:


Sec.  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

[[Page 2358]]

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--[AMENDED]

0
7. The authority citation for part 746 continues to read as follows:

    Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 
22 U.S.C. 287c; Sec 1503, Public Law 108-11, 117 Stat. 559; 22 
U.S.C. 6004; 22 U.S.C. 7201 et seq.; 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).


0
8. Revise Sec.  746.7 to read as follows:


Sec.  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., Sec.  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 Sec.  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: January 9, 2009.
Christopher R. Wall,
Assistant Secretary for Export Administration.
 [FR Doc. E9-726 Filed 1-14-09; 8:45 am]
BILLING CODE 3510-33-P


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