OFAC Final Rule Bans Imports of Iranian Carpet, Food, Etc.
The Office of Foreign Assets Control has issued a final rule, effective September 29, 2010, which implements the provisions of the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (CISADA1) to ban imports of certain foodstuffs and carpets from Iran.
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Carpet and Foodstuff Import Exceptions to Trade Ban Revoked
Effective September 29, 2010, the final rule revokes 31 CFR 560.534 (on authorized imports of certain foodstuffs and carpets from Iran) and 31 CFR 560.535 (on letters of credit and brokering services relating to these authorized foodstuff and carpet imports).
Commercial import ban. This means that OFAC will no longer authorize, by general or specific license, the commercial importation into the U.S. of the following products of Iranian origin:
- foodstuffs intended for human consumption that are classified under HTS chapters 2-23 (including pistachios, caviar, etc.); or
- carpets and other textile floor coverings and carpets used as wall hangings that are classified under HTS chapter 57 or heading 9706.00.0060.
Noncommercial import ban, unless exempt. As a result of this revocation, noncommercial importation of the above foodstuffs and carpets of Iranian origin into the U.S. and related services will also be prohibited, unless otherwise authorized or exempt. One such authorization is the general license for the importation of Iranian-origin household goods and personal effects2 set forth in 31 CFR 560.524(b). OFAC states that this general license continues in effect.
3rd Country Carpets and Foodstuffs Transshipped Through Iran also Banned
OFAC states that this revocation will also affect the specified foodstuffs and carpets of third-country origin that are transshipped through Iran for importation into the U.S.
This is because the Iranian Transactions Regulations define the terms “goods of Iranian origin” and “Iranian-origin goods” to include: (1) goods grown, produced, manufactured, extracted, or processed in Iran; and (2) goods which have entered into Iranian commerce. Based on this definition, foodstuffs and carpets of third-country origin that are transshipped through Iran become goods of Iranian-origin.
Only Carpets and Foodstuffs Entered for Consumption Before Sept 29 Allowed
OFAC notes that any of the subject goods must be entered for consumption prior to September 29, 2010 to be allowed entry.
1The CISADA, which became Public Law 111-195 on July 1, 2010, amends the Iran Sanctions Act (ISA) to expand the sanctions imposed against Iran. (See ITT’s Online Archives or 06/30/10 and 09/20/10 news, 10063049 and 10092013, for BP summaries of the major trade-related provisions of the CISADA.)
2OFAC notes that CBP Form 3299, ‘‘Declaration for Free Entry of Unaccompanied Articles,’’ is used to enter Iranian-origin household and personal effects into the U.S.
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(FR Pub 09/28/10)
(On September 29, 2010, this notice was corrected to describe the noncommercial import prohibitions of the final rule. BP has also issued an expanded version of this notice which includes additional information on OFAC's implementation of the CISADA. See ITT's Online Archives or 09/29/10 news, 10092925, for BP summary.)