BIS Establishes Iran Reexport License Requirements for Certain ECCNs, Export/Reexport License Requirements for WMD Proliferators, Etc.
The Bureau of Industry and Security has issued a final rule, effective January 15, 2009, which revises the Export Administration Regulations for Iran to, among other things, establish a new license requirement for reexports of items classified under certain Export Control Classification Numbers (ECCNs), and to impose license requirements on parties who have been listed as proliferators/supporters of weapons of mass destruction (WMD) pursuant to Executive Order 13382.
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BIS states that it is making these changes to provide greater clarity and consistency with respect to policies towards Iran and to harmonize BIS license requirements with Treasury Department license requirements regarding WMD proliferators.
10 Additional ECCNs Require Reexport License to Iran
BIS' final rule revises 15 CFR 742.8 to establish a license requirement for reexports of items classified under the following ten ECCNs that previously did not require a license for reexport to Iran under the EAR, and to treat them as "controlled U.S. content" when incorporated into foreign made items being exported from abroad to Iran: (i) 2A994; (ii) 3A992.a; (iii) 5A991.g; (iv) 5A992; (v) 6A991; (vi) 6A998; (vii) 7A994; (viii) 8A992.d, .e, .f, and .g; (ix) 9A990.a and .b; and (x) 9A991.d and .e.
Certain ECCNs Added to Iran License Requirements for Regulatory Consistency
BIS' final rule adds ECCNs 1C350, 1C355 and 1C395, which 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, to the license requirements under 15 CFR 742.8 (Exports, Terrorism; Anti-terrorism: Iran).
This rule also adds ECCNs 0A982, 0A985, 0E982, 1C355, 1C395, 2A994, 2D994, and 2E994, which 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, to the license requirements under 15 CFR 746.7 (Exports, Reporting and recordkeeping requirements; Iran).
BIS states that adding these ECCNs to 15 CFR 742.8 and 746.7 is consistent with BIS' policy of stating all license requirements that apply to Iran in these sections. (Prior to publication of this rule, these ECCNs were not referenced in 15 CFR 742.8 and 15 CFR 746.7.)
BIS Imposes Export/Reexport License Requirements for WMD Proliferators
BIS' final rule also adds a new 15 CFR 744.8 that imposes a license requirement on exports and reexports to parties listed by the Office of Foreign Assets Control in Appendix A to 31 CFR Chapter V with the bracketed suffix [NPWMD].
(OFAC lists such parties pursuant to its authority under Executive Order 13382 of June 2005, which blocks the property and interests in property of certain parties determined to be WMD proliferators or their supporters. See ITT's Online Archives or 07/15/05 news, 05071599 5, for BP summary of EO 13382.)
For transactions requiring authorization from both OFAC and BIS (pursuant to 15 CFR 744.8), 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 EAR, a BIS license must be obtained.
(See BIS' final rule for complete regulations and amendments, including the removal of all references to "contract sanctity" dates applicable to Iran from Supplement No. 2 to 15 CFR Part 742, technical and conforming changes, etc.)
(See ITT's Online Archives or 10/20/08 news, 08102025, for BP summary of BIS' October 2008 final rule which implemented numerous changes to the Wassenaar List, including expanded anti-terrorism controls for Iran, etc.)
BIS contact - William Arvin (202) 482-2440
BIS final rule (D/N 0811241505-81513-01, FR Pub 01/15/09) available at http://edocket.access.gpo.gov/2009/pdf/E9-726.pdf