State Department Imposes Nonproliferation Measures Against Two Iranian Entities and a North Korean Entity
The State Department has issued a notice, effective September 26, 2007, announcing its determination that two Iranian entities and a North Korean entity have engaged in proliferation activities that warrant the imposition of measures pursuant to Executive Order (EO) 12938 as amended by EO 13094 and EO 13382, including a ban on U.S. government procurement.
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The two Iranian entities and one North Korean entity subject to the measures are:
Aerospace Industries Organization (AIO) (Iran)
Shahid Hemmat Industrial Group (SHIG) (Iran)
Korea Mining and Development Corporation (KOMID) (North Korea)1
Government Procurement/Assistance, Imports From Entities Banned for 2 Years
Pursuant to the provisions of EO 12938, the following measures are imposed on these entities, their subunits, and successors for two years:
(1) All departments and agencies of the U.S. government shall not procure or enter into any contract for the procurement of any goods, technology, or services from these entities including the termination of existing contracts;
(2) All departments and agencies of the U.S. government shall not provide any assistance to these entities, and shall not obligate further funds for such purposes; and
(3) The Secretary of the Treasury shall prohibit the importation into the U.S. of any goods, technology, or services produced or provided by these entities, other than information or informational materials within the meaning of section 203(b)(3) of the International Emergency Economic Powers Act (50 U.S.C. 1702(b)(3)).
Licenses for Defense Exports, Transfers, Temporary Imports Banned for 2 Years
In addition, the State Department states that pursuant to section 126.7(a)(1) of the International Traffic in Arms Regulations (ITAR), it is deemed that suspending the above-named entities from participating in any activities subject to Section 38 of the Arms Export Control Act would be in furtherance of the national security and foreign policy of the U.S.
Therefore, for two years, the State Department is suspending all licenses and other approvals for:
(1) exports and other transfers of defense articles and defense services from the U.S.;
(2) transfers of U.S.-origin defense articles and defense services from foreign destinations; and
(3) temporary import of defense articles to or from the above named entities.
The State Department adds that it is the policy of the U.S. to deny licenses and other approvals for exports and temporary imports of defense articles and defense services destined for these entities.
1See ITT's Online Archives or 09/28/07 news, 07092825, for BP summary of the State Department's imposition of sanctions under the Arms Export Control Act, as amended, and the Export Administration Act, as amended, on KOMID effective September 26, 2007.
| Pam Durham (general issues) | (202) 647-4931 |
| Rochelle Stern (import ban issues) | (202) 622-2500 |
| Gladys Gines (procurement ban issues) | (703) 516-1691 |
State Department notice (Public Notice 5943, FR Pub 09/26/07, available at http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/E7-18997.pdf