Iraqi sanctions regulations: Oilfield parts and equipment; executory sale contracts,

[Federal Register: November 10, 1998 (Volume 63, Number 217)]

[Rules and Regulations]

[Page 62942-62943]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr10no98-14]

DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 575

Iraqi Sanctions Regulations

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Final rule; amendments.

SUMMARY: The Office of Foreign Assets Control is amending the Iraqi Sanctions Regulations to permit U.S. persons to enter into executory contracts for the sale of oilfield parts and equipment to the Government of Iraq in conformity with United Nations Security Council Resolutions No. 1153 and 1175.

EFFECTIVE DATE: November 10, 1998.

FOR FURTHER INFORMATION CONTACT: Steven I. Pinter, Chief, Licensing (tel.: 202/622-2480) or William B. Hoffman, Chief Counsel (tel.: 202/ 622-2410), Office of Foreign Assets Control, Department of the Treasury, Washington, DC 20220.

SUPPLEMENTARY INFORMATION:

Electronic Availability

This document is available as an electronic file on The Federal Bulletin Board the day of publication in the Federal Register. By modem, dial 202/512-1387 and type ``/GO FAC,'' or call 202/512-1530 for disk or paper copies. This file is available for downloading without charge in ASCII and Adobe Acrobat‹SUP›R‹/SUP› readable (*.PDF) formats. For Internet access, the address for use with the World Wide Web (Home Page), Telnet, or FTP protocol is: fedbbs.access.gpo.gov. The document is also accessible for downloading in ASCII format without charge from Treasury's Electronic Library (``TEL'') in the ``Research Mall'' of the FedWorld bulletin board. By modem, dial 703/321-3339, and select self- expanding file ``T11FR00.EXE'' in TEL. For Internet access, use one of the following protocols: Telnet = fedworld.gov (192.239.93.3); World Wide Web (Home Page) = http://www.fedworld.gov; FTP = ftp.fedworld.gov (192.239.92.205). Additional information concerning the programs of the Office of Foreign Assets Control is available for downloading from the Office's Internet Home Page: http://www.treas.gov/ofac, or in fax form through the Office's 24-hour fax-on-demand service: call 202/622-0077 using a fax machine, fax modem, or (within the United States) a touch- tone telephone.

Background

United Nations Security Council Resolution (``UNSCR'') No. 1153 of February 20, 1998, authorizes the exportation from Iraq of $5.256 billion in petroleum and petroleum products within a 180-day period. UNSCR No. 1175 of June 19, 1998, authorizes the exportation to Iraq of the necessary parts and equipment to enable Iraq to achieve the level of exports authorized in Resolution No. 1153. Pursuant to Executive Orders 12722 of August 2, 1990 (55 FR 31803, 3 CFR, 1990 Comp., p. 294), and 12724 of August 9, 1990 (55 FR 33089, 3 CFR, 1990 Comp., p. 297), and in accordance with UNSCRs No. 1153 and 1175, the Office of Foreign Assets Control is amending Sec. 575.522 of the Iraqi Sanctions Regulations, 31 CFR Part 575 (the ``Regulations''), to authorize United States persons to enter into executory contracts with the Government of Iraq for the sale and exportation to Iraq of parts and equipment necessary to enable Iraq to export petroleum and petroleum products in accordance with UNSCRs No. 1153 and 1175.

Since the Regulations involve a foreign affairs function, Executive Order 12866 and the provisions of the Administrative Procedure Act (5 U.S.C. 553)(the ``APA'') requiring notice of proposed rulemaking, opportunity for public participation, and delay in effective date, are inapplicable. Because no notice of proposed rulemaking is required for this rule, the Regulatory Flexibility Act (5 U.S.C. 601-612) does not apply. This final rule imposes no paperwork burden.

List of Subjects in 31 CFR Part 575

Administrative practice and procedure, Banks, banking, Blocking of assets, Exports, Foreign trade, Humanitarian aid, Imports, Iraq, Oil imports, Penalties, Petroleum, Petroleum products, Reporting and recordkeeping requirements, Specially designated nationals, Terrorism, Travel restrictions.

For the reasons set forth in the preamble, 31 CFR part 575 is amended as follows:

PART 575--IRAQI SANCTIONS REGULATIONS

  1. The authority citation for part 575 is revised to read as follows:

    Authority: 3 U.S.C. 301; 18 U.S.C. 2332d; 22 U.S.C. 287c; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-513, 104 Stat. 2047-2055 (50 U.S.C. 1701 note); E.O. 12722, 55 FR 31803, 3 CFR, 1990 Comp., p. 294; E.O. 12724, 55 FR 33089, 3 CFR, 1990 Comp., p. 297; E.O. 12817, 57 FR 48433, 3 CFR, 1992 Comp., p. 317.

    Subpart E--Licenses, Authorizations, and Statements of Licensing Policy

  2. Section 575.522 is amended by revising the section heading, removing the word ``and'' from the end of paragraph (a)(2), removing the period at the end of paragraph (a)(3) and adding ``; and'', and adding a new paragraph (a)(4) to read as follows:

    Sec. 575.522 Executory contracts with the Government of Iraq for trade in petroleum, pipeline parts and equipment, humanitarian goods, and oil field equipment authorized.

    (a) * * *

    (4) The sale and exportation to Iraq of oilfield parts and equipment to the extent necessary to enable Iraq to export petroleum and petroleum products in accordance with United Nations Security Council Resolutions No. 1153

    [[Page 62943]]

    and 1175 and other relevant UNSC Resolutions.

    * * * * *

    Dated: October 20, 1998. R. Richard Newcomb, Director, Office of Foreign Assets Control.

    Approved: October 27, 1998. Elisabeth A. Bresee Assistant Secretary (Enforcement), Department of the Treasury.

    [FR Doc. 98-30125Filed11-5-98; 3:43 pm]

    BILLING CODE 4810-25-F

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