Proposal for a Council Regulation amending Regulation (EC) No 423/2007 concerning restrictive measures against Iran
Date: 2007-04-26
Institutions: European Commission
Subjects: Iran, dual-use good, economic sanctions, export monitoring, international sanctions, nuclear non-proliferation, technology transfer

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 26.4.2007 
COM(2007) 229 final 

Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 423/2007 concerning restrictive measures against Iran 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

(1) 

(2) 

(3) 

On 27 February 2007, the Council approved Common Position 2007/140/CFSP which 
makes  provision  for  certain  restrictive  measures  against  Iran.  On  19  April  2007,  the 
Community took the necessary urgent measures by means of Council Regulation (EC) 
No 423/2007 concerning restrictive measures against Iran. 

An amendment to Common Position 2007/140/CFSP has been approved on 23 April 
2007  to  take  account  of  Resolution  1747  of  the  UN  Security  Council  of  24  March 
2007.  In  line  with  that  Resolution,  the  amendment  provides,  inter  alia,  for  the 
application of an embargo on the export of arms and related materiel to Iran and on the 
provision  of  related  technical  and  financial  assistance,  financing,  investment  and 
brokering services, as well as a ban on the import on of arms and related materiel from 
Iran.  

The  purpose  of  this  proposal  is  to  align  Council  Regulation  (EC)  No  423/2007  with 
the  amended  Common  Position  2007/140/CFSP.  Taking  longstanding  practice  as 
regards arms embargoes into account, the Community measures need not include the 
embargo on the export of arms and related materiel and on related brokering services. 

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Proposal for a 

COUNCIL REGULATION 

amending Regulation (EC) No 423/2007 concerning restrictive measures against Iran 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular Articles 
60 and 301 thereof, 

Having 
2007/140/CFSP concerning restrictive measures against Iran1,  

to  Common  Position  2007/…/CFSP  amending  Common  Position 

regard 

Having regard to the proposal from the Commission, 

Whereas: 

(1) 

(2) 

(3) 

Common Position 2007/140/CFSP as amended provides inter alia that the provision of 
technical and financial assistance, financing and investment related to arms and related 
materiel of all types to any person, entity or body in, or for use in, Iran, as well as the 
procurement of such goods from Iran, should be prohibited. 

Those  measures  fall  within  the  scope  of  the  Treaty  establishing  the  European 
Community and, therefore, notably with a view to ensuring their uniform application 
by  economic  operators  in  all  Member  States,  Community  legislation  is  necessary  in 
order to implement them as far as the Community is concerned. 

Council  Regulation  (EC)  No  423/2007  of  19  April  20072  imposed  certain  restrictive 
measures against Iran, in line with the original Common Position 2007/140/CFSP. It is 
appropriate  to  insert  the  new  prohibitions  in  that  Regulation.  It  should  therefore  be 
amended accordingly. 

(4) 

In  order  to  ensure  that  the  measures  provided  for  in  this  Regulation  are  effective,  it 
should enter into force immediately, 

HAS ADOPTED THIS REGULATION: 

1 
2 

OJ L …, ….4.2007, p. … .  
OJ L…, ….4.2007, p. … . 

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Regulation (EC) No 423/2007 is amended as follows: 

Article 1 

(a) 

“2. 

In Article 2, the current text is numbered as paragraph 1 and the following paragraph 
2 is added: 

Annex  I  shall  not  include  goods  and  technology  included  in  the  Common  Military 
List of the European Union3.” 

(b) 

Article 4 is replaced by the following: 

“Article 4 

It shall be prohibited to purchase, import or transport the goods and technology listed 
in  the  Common  Military  List  of  the  European  Union,  from  Iran,  whether  the  item 
concerned originates in Iran or not. 

It shall be prohibited to purchase, import or transport the goods and technology listed 
in Annex I, from Iran, whether the item concerned originates in Iran or not.” 

In Article 5, paragraph 1 is replaced by the following: 

It shall be prohibited: 

1. 

2. 

(c) 

“1. 

(a) 

(b) 

(c) 

(d) 

to provide, directly or indirectly, technical assistance related to the goods and 
technology listed in the Common Military List of the European Union, and to 
the provision, manufacture, maintenance and use of goods included in that list, 
to any natural or legal person, entity or body in, or for use in, Iran; 

to  provide,  directly  or  indirectly,  technical  assistance,  or  brokering  services 
related  to  the  goods  and  technology  listed  in  Annex  I,  and  to  the  provision, 
manufacture, maintenance and use of goods listed in Annex I, to any natural or 
legal person, entity or body in, or for use in, Iran; 

to  provide  investment  to  enterprises  in  Iran  engaged  in  the  manufacture  of 
goods  and  technology  listed  in  the  Common  Military  List  of  the  European 
Union or in Annex I; 

to provide, directly or indirectly, financing or financial assistance related to the 
goods  and  technology  listed  in  the  Common  Military  List  of  the  European 
Union  or  in  Annex  I,  including  in  particular  grants,  loans  and  export  credit 
insurance,  for  any  sale,  supply,  transfer  or  export  of  such  items,  or  for  any 
provision of related technical assistance to any natural or legal person, entity or 
body in, or for use in, Iran; 

3 

OJ L 88, 29.3.2007, p. 58. 

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(e) 

to participate, knowingly and intentionally, in activities, the object or effect of 
which is to circumvent the prohibitions referred to in points (a) to (d).” 

This Regulation shall enter into force on the day of its publication in the Official Journal of 
the European Union. 

Article 2 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, […] 

For the Council 
The President 
[…] 

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