U.S. Government Implements Changes to Iraq Export, Reexport, Licensing Policies, Etc
In the July 30, 2004 Federal Register, an Executive Order (EO), an interim rule, and a final rule were published in order to, among other things, set forth changes to the U.S. government's export, reexport, and licensing policies with respect to Iraq.
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This is Part IV, the final part of a multipart series of summaries of the order and rules. Part IV highlights certain provisions of the final rule issued by the Office of Foreign Assets Control (OFAC).
OFAC Final Rule Issued as a Result of EO 13350, EO 13315, and BIS' Interim Rule
OFAC sources note that this final rule was issued to conform OFAC's regulations to the changes made by EO 13350 (July 2004) and the Bureau of Industry and Security's (BIS') interim rule. Examples of such conforming changes include making clear that as of July 30, 2004, licensing jurisdiction over exports from the U.S. to Iraq has been transferred to BIS, recognition that the national emergency declared in EO 12722 has been terminated, etc.
This final rule also revises the 'General License' as published in 31 CFR 575.533 (Certain new Transactions under the Iraq Sanctions Regulations) as a result of EO 13315. In addition, OFAC publishes in the Federal Register (but not the CFR) the text of 'General License No. 1' which was issued pursuant to EO 13315.
Highlights of OFAC's Final Rule
Most provisions of OFAC's final rule are effective July 30, 2004. The following are highlights of OFAC's final rule which have not been addressed in BP's earlier summaries of EO 13350 and BIS' interim rule (partial list):
Status of OFAC-issued export licenses. OFAC's final rule states that all OFAC licenses issued for the exportation or reexportation of goods, software, or technology to Iraq issued pursuant to 31 CFR Part 575 shall remain valid until the expiration date stated in the license, or if no expiration date is provided in the license, until July 30, 2005.
OFAC notes that OFAC license holders will be subject to certain additional requirements (i.e. recordkeeping, etc.) consistent with the interim rule regarding Iraq that BIS issued on July 30, 2004.
General License No. 1. General License No. 1 states that on or after August 29, 2003, all transactions with state bodies, corporations, or agencies of the former Iraqi regime that are otherwise prohibited by section 1 of EO 13315 of August 28, 2003 are permitted, except:
Property and interests in property of persons listed in EO 13315's Annex remain blocked and subject to EO 13315;
Property and interests in property blocked under EO 12722, EO 12724, or the Iraqi Sanctions Regulations (31 CFR Part 575) remain blocked;
Specially Designated Nationals (SDNs), except for certain organizations listed in paragraph (b)(4) of General License No. 1;
Iraqi cultural property, or certain other items of archaeological significance, etc., illegally removed from Iraq, etc.
OFAC's final rule states that General License No. 1 is effective August 29, 2003. In addition, although OFAC has printed General License No. 1 in the Federal Register, it will not appear in the CFR.
OFAC states that the final rule is effective July 30, 2004, except for paragraphs 31 CFR 575.533 (a), (b)(1), (b)(3), (b)(4), and (b)(5) which are effective May 23, 2003.
(See ITT's Online Archives or 08/04/04, 08/09/04, and 08/10/04 news, (Ref:04080420) 04080930 and 04081030, for Parts I - III of BP's summary of EO 13350, BIS' interim rule, and OFAC's final rule.
See ITT's Online Archives or 05/29/03 news, 03052905, for BP summary of the May 2003 issuance of OFAC's 'General License'.)
OFAC Final Rule (FR Pub 07/30/04) available at http://a257.g.akamaitech.net/7/257/2422/06jun20041800/edocket.access.gpo.gov/2004/pdf/04-17615.pdf