BIS Final Rule on its Export License Policy for Persons Sanctioned Under ISA, Etc.
The Bureau of Industry and Security has issued a final rule, effective February 3, 2012, which amends the Export Administration Regulations to (i) include a reference to the Iran Sanctions Act of 1996 in its licensing policy for reexport and reexport transactions that involve persons sanctioned pursuant to specified statutes; (ii) clarify that its policy of license denial applies to any person, sanctioned under ISA and three other statutes1 which is a party to the transaction; and (iii) make technical corrections to update statutory citations and make conforming changes.
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Licensing Policy of Denial Amended to Add ISA, Applies to "Persons," Etc.
BIS’ final rule amends 15 CFR 744.19 to:
Add reference to ISA - add a new paragraph (e) for the Iran Sanctions Act to the list of sanctions to which its licensing policy of denial applies.
(New paragraph (e) applies to "a sanction issued pursuant to the Iran Sanctions Act of 1996 that prohibits the issuance of a specific license or grant of any other specific permission or authority to export any goods or technology to a sanctioned person under the Export Administration Act of 1979, as amended.")
Apply denial policy to “persons” - clarify that its policy of denial applies to any "person" sanctioned under one of the four statutes (which now includes the ISA) who is a party to the transaction (i.e., the applicant, other party authorized to receive a license, purchaser, intermediate consignee, ultimate consignee, or end-user).
(This final rule replaces the term ‘‘entity’’ that previously appeared in 15 CFR 744.19 with ‘‘person’’ in order to be consistent with the four statutes and BIS’s licensing policy under the EAR. As defined in the EAR, the term ‘‘person’’ applies to both natural persons and entities such as corporations and organizations.)
Technical corrections - make technical corrections to 15 CFR 744.19 to update statutory citations and make conforming changes. This rule updates the reference to the Iran Nonproliferation Act of 2000, which has been amended on several occasions and is currently referred to as the Iran, North Korea, and Syria Nonproliferation Act, adds the U.S. Code citation for the Iran Nonproliferation Act of 2000, and amends the citations for the statutes referenced in 15 CFR 744.19(a), (b), and (c) to refer solely to the U.S. Code citations.
1The three statutes are (i) The Iran-Iraq Arms Nonproliferation Act of 1992; (ii) the Iran, North Korea, and Syria Nonproliferation Act, and (iii) Section 11B(b)(1)(B)(i) or (ii) of the Export Administration Act of 1979, as amended.
BIS contact - Theodore Curtin (202) 482--1975, theodore.curtin@bis.doc.gov.
(FR Pub 02/03/12, D/N 110718395-1482-01)