Sudanese, Libyan and Iranian sanctions regulations: Agricultural commodities and products, medicine, and medical equipment; commercial sales licensing,
[Federal Register: August 2, 1999 (Volume 64, Number 147)]
[Rules and Regulations]
[Page 41784-41794]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02au99-9]
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Parts 538, 550 and 560
Sudanese Sanctions Regulations; Libyan Sanctions Regulations; Iranian Transactions Regulations: Licensing of Commercial Sales of Agricultural Commodities and Products, Medicine, and Medical Equipment
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Final rule; amendments.
SUMMARY: The Treasury Department is amending the Sudanese Sanctions Regulations, the Libyan Sanctions Regulations, and the Iranian Transactions Regulations to add statements of licensing policy with respect to commercial sales of agricultural commodities and products, medicine, and medical equipment. EFFECTIVE DATE: July 27, 1999.
FOR FURTHER INFORMATION CONTACT: Steven I. Pinter, Chief of Licensing (tel.: 202/622-2480) or William B. Hoffman, Chief Counsel (tel.: 202/ 622-2410), Office of Foreign Assets Control, U.S.
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Treasury Department, Washington, DC 20220.
SUPPLEMENTARY INFORMATION:
Electronic and Facsimile Availability
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Background
On April 28, 1999, President Clinton announced that existing unilateral economic sanctions programs would be amended to modify licensing policies to permit case-by-case review of specific proposals for the commercial sale of agricultural commodities and products, as well as medicine and medical equipment, where the United States Government has the discretion to do so. He further announced that the Administration was developing country-specific licensing criteria to guide the case-by-case review process so that governments subject to sanctions do not gain unjustified or unwarranted benefits from such sales. To implement this policy, the Treasury Department's Office of Foreign Assets Control (``OFAC'') is amending the Sudanese Sanctions Regulations, 31 CFR part 538 (the ``SSR''), the Libyan Sanctions Regulations, 31 CFR part 550 (the ``LSR''), and the Iranian Transactions Regulations, 31 CFR part 560 (the ``ITR'') (collectively, the ``Regulations''), to make available both general and specific licenses governing commercial sales of such goods.
This final rule deals with commercial sales to Sudan, Libya and Iran (the ``target countries'') of agricultural commodities and products intended for ultimate consumption in a target country as food by humans (including live animals, raw, processed and packaged foods) or animals (including animal feeds); as seeds for food crops; or as reproductive materials (such as live animals, fertilized eggs, embryos and semen) for the production of food animals. It also deals with commercial sales of medicines (including those administered by injection) and medical equipment for use in the target countries, if those medicines and medical equipment are not listed on the Commerce Control List in the Export Administration Regulations, 15 CFR part 774, supplement no. 1 (excluding items classified EAR 99), as of the date of exportation or reexportation. Regulations, Secs. 538.523(a), 550.569(a) and 560.530(a).
Licensing of commercial sales. The amendments authorize two tracks for commercial sales of these goods. First, an OFAC general license permits sellers to negotiate and sign executory contracts for commercial sales and exportation or reexportation of any of these agricultural or medical items to the target countries or their governments. Performance under such executory contracts must made be contingent upon receipt of an OFAC license. After review of an executory contract, OFAC may authorize its performance by specific license where OFAC finds the contract terms consistent with the licensing policy in this final rule. Regulations, Secs. 538.523, 550.569 and 560.530. Second, persons wishing to make commercial sales of certain bulk agricultural commodities to the target countries or their governments may apply for specific licenses that permit future entry into and performance of contracts for those commodities. OFAC will issue a specific license for the proposed bulk agricultural commodity sales and exportation and reexportation if it finds the proposal set forth in the application consistent with the licensing policy in this final rule. Regulations, Sec. 538.524 and SSR, appendix A; Sec. 550.570 and LSR, appendix A; Sec. 560.531 and ITR, appendix B. In either case, all sales to the target countries must comply with a series of requirements intended to ensure that such sales do not improperly benefit the target countries' governments.
Required contract terms for executory contracts. In addition to the requirements set forth below in Required contract terms in general, executory contracts submitted to OFAC for specific licensing must disclose all parties with an interest in the sales transaction, including identification of a purchasing agent's principals at the wholesale level, if any; set forth all terms of sale (e.g., purchase price, quantity, date of shipment, financing), except that dates for contract performance may be made dependent upon the date OFAC issues a specific license; and ensure that exports and reexports of any goods, technology or services are in compliance with license application requirements of other Federal agencies. Regulations, Secs. 538.523(b), 550.569(b) and 560.530(b).
Required contract terms for bulk agricultural commodities contracts. Contracts entered into pursuant to an OFAC specific license for bulk agricultural commodity sales must meet all of the requirements set forth below in Required contract terms in general, and may only cover commercial sales of the bulk agricultural commodities listed in the appendices to the Regulations. Regulations, Secs. 538.524(b)(1), 550.570(b)(1) and 560.531(b)(1).
Required contract terms in general. Contracts for commercial sales licensed pursuant to this final rule must, in addition to the applicable requirements noted above, comply with the following conditions. The contracts must disclose the purchasers, including (for sales through persons in third countries) those to whom goods are to be resold, which may only be (1) private individuals in the target countries who are acting for their own accounts, (2) nongovernmental entities in the target countries, (3) target-country governmental procurement bodies identified by OFAC as not being affiliated with the coercive organs of the state, or (4) persons in third countries purchasing specifically for resale to any of the foregoing. (A listing of the procurement bodies identified by OFAC as not being affiliated with the coercive organs of the state can be found on OFAC's Web site at http://www.treas.gov/ofac or OFAC's fax-on-demand service at 202/ 622-0077.) Persons named in OFAC's list of blocked persons, specially designated nationals, specially designated terrorists, foreign terrorist organizations, and specially designated narcotics traffickers (31 CFR chapter V, appendix A) or of financial institutions owned or controlled by the government of Iran (ITR, appendix A) are not eligible purchasers. All contracts must also provide for sales at prevailing market
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prices and with payment terms and financing consistent with the policies set forth below in Payment and financing terms. Regulations, Secs. 538.523 and 538.524(b); 550.569 and 550.570(b); 560.530 and 560.531(b).
Recordkeeping and reporting requirements. In addition, full records of all transactions pursuant to OFAC licenses must be maintained for a minimum of 5 years after each transaction, and reports relating to the transactions must be provided to OFAC upon demand to ensure compliance with all licensing requirements. Regulations, Secs. 538.523(e), 538.524(c); 550.569(e), 550.570(c); 560.530(e), 560.531(c); 501.601 and 501.602.
Payment and financing terms. Certain payment and financing terms for commercial sales of agricultural or medical items to the target countries or their governments are authorized by general license. These include payment of cash in advance, sales on open account (so long as the seller does not discount or otherwise transfer the account receivable created by the sale), and financing by third-country financial institutions (not U.S. persons nor target-country government banks). U.S. financial institutions are authorized by general license to advise or confirm such third-country financial institution financing. Regulations, Secs. 538.525(a), 550.571(a) and 560.532(a). In addition, specific licenses may be issued for payment terms and trade financing not permitted by general license. Regulations, Secs. 538.525(b), 550.571(b) and 560.532(b). Payments through the U.S. banking system must reference the applicable OFAC license to avoid being stopped or blocked in transit.
Brokering of target country purchases. This final rule permits, by general license, U.S. persons to broker sales of bulk agricultural commodities by U.S. persons destined for the target countries or their governments. For those sales, brokerage is authorized only if the sales meet all applicable requirements of this final rule for bulk agricultural commodity sales. To broker sales of bulk agricultural commodities by non-U.S. persons to the target countries or their governments, the broker must first obtain a specific license from OFAC. Licenses for brokerage are limited to sales of items listed in the bulk agricultural commodities appendices to the Regulations made to target country persons eligible to purchase bulk agricultural commodities from U.S. persons pursuant to paragraphs (b)(2) and (e) of Secs. 538.524, 550.570 and 560.531 of the Regulations. Further, if the brokered sales are subject to Federal licensing requirements, the sales must be made contingent upon prior authorization of the relevant Federal agency. Brokerage fees may not be paid from a blocked account of the Government of Sudan or Libya or from an Iranian account as defined in 31 CFR 560.530. Finally, brokers of any sales subject to this final rule must comply with the OFAC recordkeeping and reporting requirements in Secs. 501.601 and 501.602 of 31 CFR chapter V. Regulations, Secs. 538.526, 550.572 and 560.533.
Incidental transactions. The SSR are interpreted to permit most transactions incidental to licensed transactions. SSR, Sec. 538.405. This final rule amends the LSR and ITR to provide similar interpretations to that of the SSR, and to clarify in all three provisions that OFAC does not interpret the following as permitted incidental transactions: transportation services to or from the target countries except the discharging of licensed or exempt cargo; distribution or leasing of containers in the target countries after performing transportation services; or financing agricultural and medical sales described in this final rule. Regulations, Secs. 538.405, 550.405 and 560.405. (General licenses for certain financing terms and statements of licensing policy with respect to alternative terms are noted above.) Travel-related transactions are not restricted in the SSR or ITR. This final rule amends the LSR to authorize travel-related transactions for the negotiation of executory contracts or bulk agricultural commodity contracts. Specific licensing is required for installation and servicing of medical equipment sold to Libya pursuant to executory contracts. LSR, Sec. 550.573.
Paperwork Reduction Act
As authorized in the Administrative Procedure Act (5 U.S.C. 553)(the ``APA''), this final rule is amending the Regulations is being issued without prior notice and public comment procedure. The collections of information related to the Regulations are contained in 31 CFR part 501 (the ``Reporting and Procedures Regulations''). Pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3507), those collections of information have been approved by the Office of Management and Budget (``OMB'') under control number 1505-0164. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid control number.
Because the Regulations involve a foreign affairs function, Executive Order 12866 and the provisions of 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.
List of Subjects
31 CFR Part 538
Administrative practice and procedure, Agricultural commodities, Banks, banking, Blocking of assets, Drugs, Exports, Foreign trade, Humanitarian aid, Imports, Medical devices, Penalties, Reporting and recordkeeping requirements, Specially designated nationals, Sudan, Terrorism, Transportation.
31 CFR Part 550
Administrative practice and procedure, Agricultural commodities, Banks, banking, Blocking of assets, Drugs, Exports, Foreign investment, Foreign trade, Government of Libya, Imports, Libya, Loans, Medical devices, Penalties, Reporting and recordkeeping requirements, Securities, Services, Specially designated nationals, Terrorism, Travel restrictions.
31 CFR Part 560
Administrative practice and procedure, Agricultural commodities, Banks, banking, Drugs, Exports, Foreign trade, Imports, Information, Investments, Iran, Loans, Medical devices, Penalties, Reporting and recordkeeping requirements, Services, Specially designated nationals, Terrorism, Transportation.
For the reasons set forth in the preamble, 31 CFR parts 538, 550 and 560 are amended as set forth below:
PART 538--SUDANESE SANCTIONS REGULATIONS
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The authority citation for part 538 continues to read as follows:
Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; E.O. 13067, 62 FR 59989, 3 CFR, 1997 Comp., p. 230.
Subpart D--Interpretations
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Section 538.405 is revised to read as follows:
Sec. 538.405 Transactions incidental to a licensed transaction authorized.
Any transaction ordinarily incident to a licensed transaction and necessary to give effect thereto is also authorized, except:
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(a) A transaction by an unlicensed Sudanese governmental entity or involving a debit to a blocked account or a transfer of blocked property not explicitly authorized within the terms of the license;
(b) Provision of any transportation services to or from Sudan not explicitly authorized in or pursuant to this part other than discharging licensed or exempt cargo there;
(c) Distribution or leasing in Sudan of any containers or similar goods owned or controlled by United States persons after the performance of transportation services to Sudan; and
(d) Financing of licensed sales for exportation or reexportation of agricultural commodities or products, medicine, or medical equipment to Sudan or the Government of Sudan. See Sec. 538.525.
Subpart E--Licenses, Authorizations, and Statements of Licensing Policy
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Section 538.523 is added to subpart E to read as follows:
Sec. 538.523 Commercial sales and exportation of agricultural commodities and products, medicine, and medical equipment.
(a) General license for executory contracts. Except as provided in paragraph (c) of this section, entry into executory contracts is authorized for the following transactions with individuals in Sudan acting for their own account, nongovernmental entities in Sudan, or procurement bodies of the Government of Sudan identified by the Office of Foreign Assets Control as not being affiliated with the coercive organs of the state, or with persons in third countries purchasing specifically for resale to any of the foregoing, provided that performance of the executory contracts (including any preparatory activities, payments or deposits related to such executory contracts) is contingent upon the prior authorization of the Office of Foreign Assets Control in or pursuant to this part:
(1) The sale of agricultural commodities and products, if those commodities and products are intended for ultimate consumption in Sudan as:
(i) Food by humans (including live animals, raw, processed and packaged foods) or animals (including animal feeds);
(ii) Seeds for food crops; and
(iii) Reproductive materials (such as live animals, fertilized eggs, embryos and semen) for the production of food animals; and
(2) The sale of medicines (including those administered by injection) and medical equipment for use in Sudan, if those medicines and medical equipment are not listed on the Commerce Control List in the Export Administration Regulations, 15 CFR part 774, supplement no. 1 (excluding items classified EAR99), as of the date of exportation or reexportation. (EAR99 items may in certain instances require a license from the Department of Commerce, Bureau of Export Administration. See, e.g., 15 CFR 736.2(b)(5), 744.2 through 744.4, 744.7, and 744.10.)
Note to paragraph (a) of Sec. 538.523. See Sec. 538.524 with respect to the availability of specific licenses for sales of certain bulk agricultural commodities for exportation or reexportation to Sudan or the Government of Sudan.
(b) Required terms of executory contracts. The authorization contained in paragraph (a) of this section applies only to executory contracts that:
(1) Disclose all parties with an interest in the sales transaction. If the goods are being sold to a purchasing agent in Sudan, the executory contract must identify the agent's principals at the wholesale level for whom the purchase is being made;
(2) Provide only for sales at prevailing market prices;
(3) Set forth all terms of sale (e.g., purchase price, quantity, date of shipment, financing), except that dates for contract performance may be made dependent upon the date a specific license pursuant to paragraph (d) of this section is obtained from the Office of Foreign Assets Control;
(4) Make any performance involving the exportation or reexportation of any goods, technology (including technical data, software, or other information) or services that are subject to license application requirements of another Federal agency contingent upon the prior authorization of that agency. (For example, EAR99 items may in certain instances require a license from the Department of Commerce, Bureau of Export Administration. See, e.g., 15 CFR 736.2(b)(5), 744.2 through 744.4, 744.7, and 744.10; see also 22 CFR 123.9); and
(5) Provide for payment terms consistent with the provisions of Sec. 538.525.
(c) Ineligible purchasers. Nothing in this section permits entry into or performance of a sales contract with a person specifically named in appendix A to this chapter V or in appendix A to part 560 of this chapter, other than a procurement body of the Government of Sudan identified by the Office of Foreign Assets Control as not being affiliated with the coercive organs of the state.
Note to paragraph (c) of Sec. 538.523. Information on ineligible purchasers and eligible procurement bodies will be published in the Federal Register and may be found on the Office of Foreign Assets Control's Internet site: http://www.treas.gov/ofac, or on its fax- on-demand system: 202/622-0077.
(d) Specific licenses for performance under executory contracts. Specific licenses may be issued on a case-by-case basis to permit the performance of executory contracts meeting the requirements of paragraphs (a) and (b) of this section. See Sec. 501.801(b) of this chapter with respect to specific licensing procedures.
(e) Recordkeeping and reporting requirements. Attention is drawn to the recordkeeping, retention, and reporting requirements of Secs. 501.601 and 501.602.
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Section 538.524 is added to subpart E to read as follows:
Sec. 538.524 Commercial sales and exportation of certain bulk agricultural commodities.
(a) Sales of bulk agricultural commodities by licensed sellers. Specific licenses may be issued on a case-by-case basis to permit the sale and exportation or reexportation to persons in Sudan or the Government of Sudan of bulk agricultural commodities intended for ultimate consumption in Sudan as food by humans or animals (including animal feeds) and seeds for food crops, for sales meeting all requirements of paragraph (b) of this section.
(b) Required contract terms for commercial sales of bulk agricultural commodities. Specific licenses issued pursuant to this section will authorize entry into and performance only of contracts that:
(1) Provide for the sale and exportation or reexportation only of bulk agricultural commodities listed in appendix A to this part 538;
(2) Fully identify the purchasers of the bulk agricultural commodities, including (for sales through persons in third countries) those to whom the commodities are to be resold, and do not include as a purchaser any person in Sudan or any person within the definition of the term Government of Sudan other than:
(i) A private individual in Sudan acting for his or her own account;
(ii) A nongovernmental entity in Sudan; or
(iii) A procurement body of the Government of Sudan identified by the Office of Foreign Assets Control as not being affiliated with the coercive organs of the state;
(3) Provide only for sales at prevailing market prices;
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(4) Make any performance involving the exportation or reexportation of any goods, technology (including technical data, software, or other information) or services that are subject to license application requirements of another Federal agency contingent upon the prior authorization of that agency. (For example, EAR99 items may in certain instances require a license from the Department of Commerce, Bureau of Export Administration. See, e.g., 15 CFR 736.2(b)(5), 744.2 through 744.4, 744.7, and 744.10; see also 22 CFR 123.9); and
(5) Provide for payment terms consistent with the provisions of Sec. 538.525.
(c) Recordkeeping and reporting requirements. Attention is drawn to the recordkeeping, retention, and reporting requirements of Secs. 501.601 and 501.602.
(d) Other commodities and products. Requests may be made to the Office of Foreign Assets Control for specific licenses analogous to those available pursuant to paragraph (a) of this section where the applicant demonstrates to the satisfaction of the Office of Foreign Assets Control that, in light of industry practices, sales of the particular agricultural commodity or product, medicine, or medical equipment are impracticable under the executory contract licensing procedures contained in Sec. 538.523.
(e) Ineligible purchasers. Nothing in this section permits entry into or performance of a sales contract with a person specifically named in appendix A to this chapter V or in appendix A to part 560 of this chapter, other than a procurement body of the Government of Sudan identified by the Office of Foreign Assets Control as not being affiliated with the coercive organs of the state.
Note to paragraph (e) of Sec. 538.524. Information on ineligible purchasers and eligible procurement bodies will be published in the Federal Register and may be found on the Office of Foreign Assets Control's Internet site: http://www.treas.gov/ofac, or on its fax- on-demand system: 202/622-0077.
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Section 538.525 is added to subpart E to read as follows:
Sec. 538.525 Payment for and financing of commercial sales of agricultural commodities and products, medicine, and medical equipment.
(a) General license for payment terms. The following payment terms for sales of agricultural commodities and products, medicine, and medical equipment pursuant to Secs. 538.523 and 538.524 are authorized:
(1) Payment of cash in advance;
(2) Sales on open account, provided that the account receivable may not be transferred by the person extending the credit; or
(3) Financing by third-country financial institutions that are neither United States persons nor Government of Sudan entities. Such financing may be confirmed or advised by U.S. financial institutions.
(b) Specific licenses for alternate payment terms. Specific licenses may be issued on a case-by-case basis for payment terms and trade financing not authorized by the general license in paragraph (a) of this section for sales pursuant to Secs. 538.523 and 538.524, except that such financing may not be provided by the Government of Sudan. See Sec. 501.801(b) of this chapter for specific licensing procedures.
(c) No debits to blocked accounts. Nothing in this section authorizes payment terms or trade financing involving a debit to an account of the Government of Sudan blocked pursuant to this part.
(d) Transfers through the U.S. financial system. Before a United States financial institution initiates a payment on behalf of any customer, or credits a transfer to the account on its books of the ultimate beneficiary, the United States financial institution must determine that the underlying transaction is not prohibited by this part. Any payment relating to a transaction authorized in or pursuant to Sec. 538.523, 538.524, or 538.526 that is routed through the U.S. financial system must reference the relevant Office of Foreign Assets Control license authorizing the payment to avoid the blocking or rejection of the transfer.
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Section 538.526 is added to subpart E to read as follows:
Sec. 538.526 Brokering sales of bulk agricultural commodities.
(a) General license for brokering sales by U.S. persons. United States persons are authorized to broker the sale and exportation or reexportation by United States persons of the bulk agricultural commodities listed in appendix A to this part 538 to individuals in Sudan acting for their own account, nongovernmental entities in Sudan, procurement bodies of the Government of Sudan identified by the Office of Foreign Assets Control as not being affiliated with the coercive organs of the state, or persons in third countries purchasing specifically for resale to any of the foregoing, provided that the brokered sales meet all conditions of Sec. 538.524.
(b) Specific licensing for brokering sales by non-U.S. persons. Specific licenses may be issued on a case-by-case basis to permit United States persons to broker the sale and exportation or reexportation of bulk agricultural commodities by non-United States persons to persons in Sudan or the Government of Sudan. Specific licenses issued pursuant to this section will authorize the brokerage only of sales that:
(1) Are limited to the bulk agricultural commodities listed in appendix A to this part 538;
(2) Are to purchasers permitted pursuant to paragraphs (b)(2) and (e) of Sec. 538.524;
(3) Require that any performance that is subject to license application requirements of another Federal agency be contingent upon the prior authorization of that agency. (For example, items classified EAR99 under the Export Administration Regulations, 15 CFR parts 730 through 774, may in certain instances require a license from the Department of Commerce, Bureau of Export Administration. See, e.g., 15 CFR 736.2(b)(5), 744.2 through 744.4, 744.7, and 744.10; see also 22 CFR 123.9.)
(c) No debit to blocked accounts. Payment for any brokerage fee earned pursuant to this section may not involve a debit to an account blocked pursuant to this part.
(d) Recordkeeping and reporting requirements. Attention is drawn to the recordkeeping, retention, and reporting requirements of Secs. 501.601 and 501.602.
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Appendix A to part 538 is added to read as follows:
Appendix A to Part 538--Bulk Agricultural Commodities
Notes:
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Appendix A sets forth those agricultural commodities eligible for the bulk agricultural commodity sales licensing procedures in Sec. 538.524.
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Commodities are identified by their classification numbers in the Harmonized Tariff Schedule of the United States (see 19 U.S.C. 1202) (``HTS'').
HTS Number
Commodity
1001.10
Durum Wheat 1001.90
Other Wheat and Meslin, including seed, Red Spring Wheat, White Winter Wheat, ``Canadian'' Western Red Winter Wheat, Soft White Spring Wheat, and Wheat not elsewhere specified 1101.00
Wheat or Meslin Flour 1006.10
Rice in the husk (paddy or rough) 1006.20
Husked (brown) Rice 1006.30
Semi-milled or wholly milled Rice, whether or not polished or glazed
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1006.40
Broken Rice 1102.30
Rice Flour 1103.14
Rice Groats, Meal and Pellets 1002.00
Rye 1003.00
Barley 1004.00
Oats 1007.00
Grain Sorghum 1005.00
Corn (Maize) 0713.31
Dried Beans including Vigna mungo (L.), Hepper, and Vigna radiata (L.) Wilczek 0713.32
Small red (adzuki) beans 0713.33
Kidney beans, including white pea beans 0713.39
Beans, other 0713.50
Broad beans and horse beans 0713.10
Dried Peas (Pisum sativum) 0713.20
Chickpeas (garbanzos) 0713.40
Lentils 0713.90
Dried leguminous vegetables, shelled, not elsewhere specified 1201.00
Soybeans, whether or not broken 2304.00
Soybean cake, meal and pellets 1507.10
Soybean oil, crude 1507.90
Soybean oil, other 1514.10
Rapeseed, colza and mustard oil, crude 1514.90
Rapeseed, colza and mustard oil, other 1515.21
Corn (Maize) oil, crude 1515.29
Corn (Maize) oil, other 1512.21
Cottonseed oil, crude 1512.29
Cottonseed oil, other 1517.90
Cottonseed oil, hydrogenated 1508.10
Peanut (ground-nut) oil, crude 1508.90
Peanut (ground-nut) oil, other 1515.50
Sesame oil 1512.11
Sunflower-seed oil, crude 1512.19
Sunflower-seed oil, other 1212.91
Sugar Beets, fresh, chilled, frozen or dried 1212.92
Sugar Cane, fresh, chilled, frozen or dried 1701.11
Cane Sugar, raw, solid form 1701.12
Beet Sugar, raw, solid form 1701.91
Cane or Beet Sugar, solid form, containing added coloring or flavoring 1701.99Cane or Beet Sugar, other, not elsewhere specified
PART 550--LIBYAN SANCTIONS REGULATIONS
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The authority citation for part 550 is revised to read as follows:
Authority: 3 U.S.C. 301; 18 U.S.C. 2332d; 22 U.S.C. 287c, 2349aa-8 and 2349aa-9; 31 U.S.C. 321(b); 49 U.S.C. 40106(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); E.O. 12543, 51 FR 875, 3 CFR, 1986 Comp., p. 181; E.O. 12544, 51 FR 1235, 3 CFR, 1986 Comp., p. 183; E.O. 12801, 57 FR 14319, 3 CFR, 1992 Comp., p. 294.
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Section 550.405 is revised to read as follows:
Sec. 550.405 Transactions incidental to a licensed transaction authorized.
Any transaction ordinarily incident to a licensed transaction and necessary to give effect thereto is also authorized, except:
(a) A transaction by an unlicensed Libyan governmental entity or involving a debit to a blocked account or a transfer of blocked property not explicitly authorized within the terms of the license;
(b) Provision of any transportation services to or from Libya not explicitly authorized in or pursuant to this part other than discharging licensed or exempt cargo there;
(c) Distribution or leasing in Libya of any containers or similar goods owned or controlled by United States persons after the performance of transportation services to Libya; and
(d) Financing of licensed sales for exportation or reexportation of agricultural commodities or products, medicine or medical equipment to Libya or the Government of Libya. See Sec. 550.571.
Subpart E--Licenses, Authorizations, and Statements of Licensing Policy
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Section 550.569 is added to subpart E to read as follows:
Sec. 550.569 Commercial sales of agricultural commodities and products, medicine, and medical equipment.
(a) General license for executory contracts. Entry into executory contracts is authorized for the following transactions with individuals in Libya acting for their own account, nongovernmental entities in Libya or procurement bodies of the Government of Libya identified by the Office of Foreign Assets Control as not being affiliated with the coercive organs of the state, or with persons in third countries purchasing specifically for resale to any of the foregoing, provided that performance of the executory contracts (including any preparatory activities, payments or deposits related to such executory contracts) is contingent upon the prior authorization of the Office of Foreign Assets Control in or pursuant to this part:
(1) The sale of agricultural commodities and products, if those commodities and products are intended for ultimate consumption in Libya as:
(i) Food by humans (including live animals, raw, processed and packaged foods) or animals (including animal feeds);
(ii) Seeds for food crops; and
(iii) Reproductive materials (such as live animals, fertilized eggs, embryos and semen) for the production of food animals; and
(2) The sale of medicines (including those administered by injection) and medical equipment for use in Libya, if those medicines and medical equipment are not listed on the Commerce Control List in the Export Administration Regulations, 15 CFR part 774, supplement no. 1 (excluding items classified EAR99), as of the date of exportation or reexportation. (EAR99 items may in certain instances require a license from the Department of Commerce, Bureau of Export Administration. See, e.g., 15 CFR 736.2(b)(5), 744.2 through 744.4, 744.7, and 744.10.)
Note to paragraph (a) of Sec. 550.569: See Sec. 550.570 with respect to the availability of specific licenses for sales of certain bulk agricultural commodities for exportation or reexportation to Libya or the Government of Libya.
(b) Required terms of executory contracts. The authorization contained in paragraph (a) of this section applies only to executory contracts that:
(1) Disclose all parties with an interest in the sales transaction. If the goods are being sold to a purchasing agent in Libya, the executory contract must identify the agent's principals at the wholesale level for whom the purchase is being made;
(2) Provide only for sales at prevailing market prices;
(3) Set forth all terms of sale (e.g., purchase price, quantity, date of shipment, financing), except that dates for contract performance may be made dependent upon the date a specific license pursuant to paragraph (d) of this section is obtained from the Office of Foreign Assets Control;
(4) Make any performance involving the exportation or reexportation of any goods, technology (including technical data, software, or other information) or services that are subject to license application requirements of another Federal agency contingent upon the prior authorization of that agency. (For example, items classified EAR99 under the Export Administration Regulations, 15 CFR parts 730 through 774, may in certain instances require a license from the Department of Commerce, Bureau of Export Administration. See, e.g., 15 CFR 736.2(b)(5), 744.2 through 744.4, 744.7, and 744.10; see also 22 CFR 123.9); and
(5) Provide for payment terms consistent with the provisions of Sec. 550.571.
(c) Ineligible purchasers. Nothing in this section permits entry into or performance of a sales contract with a person specifically named in appendix A to this chapter V or in appendix A to
[[Page 41790]]
part 560 of this chapter, other than a procurement body of the Government of Libya identified by the Office of Foreign Assets Control as not being affiliated with the coercive organs of the state.
Note to paragraph (c) of Sec. 550.569. Information on ineligible purchasers and eligible procurement bodies will be published in the Federal Register and may be found on the Office of Foreign Assets Control's Internet site: http://www.treas.gov/ofac, or on its fax- on-demand system: 202/622-0077.
(d) Specific licenses for performance under executory contracts. Specific licenses may be issued on a case-by-case basis to permit the performance of executory contracts meeting the requirements of paragraphs (a) and (b) of this section. See Sec. 501.801(b) of this chapter with respect to specific licensing procedures.
(e) Recordkeeping and reporting requirements. Attention is drawn to the recordkeeping, retention, and reporting requirements of Secs. 501.601 and 501.602.
-
Section 550.570 is added to subpart E to read as follows:
Sec. 550.570 Commercial sales of certain bulk agricultural commodities.
(a) Sales of bulk agricultural commodities by licensed sellers. Specific licenses may be issued on a case-by-case basis to permit the sale and exportation or reexportation to persons in Libya or the Government of Libya of bulk agricultural commodities intended for ultimate consumption in Libya as food by humans or animals (including animal feeds) and seeds for food crops, for sales meeting all requirements of paragraph (b) of this section.
(b) Required contract terms for commercial sales of bulk agricultural commodities. Specific licenses issued pursuant to this section will authorize entry into and performance only of contracts that:
(1) Provide for the sale and exportation or reexportation only of bulk agricultural commodities listed in appendix A to this part 550;
(2) Fully identify the purchasers of the bulk agricultural commodities, including (for sales through persons in third countries) those to whom the commodities are to be resold, and do not include as a purchaser any person in Libya or any person within the definition of the term Government of Libya other than:
(i) A private individual in Libya acting for his or her own account;
(ii) A nongovernmental entity in Libya; or
(iii) A procurement body of the Government of Libya identified by the Office of Foreign Assets Control as not being affiliated with the coercive organs of the state;
(3) Provide only for sales at prevailing market prices;
(4) Make any performance involving the exportation or reexportation of any goods, technology (including technical data, software, or other information) or services that are subject to license application requirements of another Federal agency contingent upon the prior authorization of that agency. (For example, EAR99 items may in certain instances require a license from the Department of Commerce, Bureau of Export Administration. See, e.g., 15 CFR 736.2(b)(5), 744.2 through 744.4, 744.7, and 744.10; see also 22 CFR 123.9); and
(5) Provide for payment terms consistent with the provisions of Sec. 550.571.
(c) Recordkeeping and reporting requirements. Attention is drawn to the recordkeeping, retention, and reporting requirements of Secs. 501.601 and 501.602.
(d) Other commodities and products. Requests may be made to the Office of Foreign Assets Control for specific licenses analogous to those available pursuant to paragraph (a) of this section where the applicant demonstrates to the satisfaction of the Office of Foreign Assets Control that, in light of industry practices, sales of the particular agricultural commodity or product, medicine, or medical equipment are impracticable under the executory contract licensing procedures contained in Sec. 550.569.
(e) Ineligible purchasers. Nothing in this section permits entry into or performance of a sales contract with a person specifically named in appendix A to this chapter V or in appendix A to part 560 of this chapter, other than a procurement body of the Government of Libya identified by the Office of Foreign Assets Control as not being affiliated with the coercive organs of the state.
Note to paragraph (e) of Sec. 550.570. Information on ineligible purchasers and eligible procurement bodies will be published in the Federal Register and may be found on the Office of Foreign Assets Control's Internet site: http://www.treas.gov/ofac, or on its fax- on-demand system: 202/622-0077.
-
Section 550.571 is added to subpart E to read as follows:
Sec. 550.571 Payment for and financing of commercial sales of agricultural commodities and products, medicine, and medical equipment.
(a) General license for payment terms. The following payment terms for sales of agricultural commodities and products, medicine, and medical equipment pursuant to Secs. 550.569 and 550.570 are authorized:
(1) Payment of cash in advance;
(2) Sales on open account, provided that the account receivable may not be transferred by the person extending the credit; or
(3) Financing by third-country financial institutions that are neither United States persons nor Government of Libya entities. Such financing may be confirmed or advised by U.S. financial institutions.
(b) Specific licenses for alternate payment terms. Specific licenses may be issued on a case-by-case basis for payment terms and trade financing not authorized by the general license in paragraph (a) of this section for sales pursuant to Secs. 550.569 and 550.570, except that such financing may not be provided by the Government of Libya. See Sec. 501.801(b) of this chapter for specific licensing procedures.
(c) No debits to blocked accounts. Nothing in this section authorizes payment terms or trade financing involving a debit to an account of the Government of Libya blocked pursuant to this part.
(d) Transfers through the U.S. financial system. Before a United States financial institution initiates a payment on behalf of any customer, or credits a transfer to the account on its books of the ultimate beneficiary, the United States financial institution must determine that the underlying transaction is not prohibited by this part. Any payment relating to a transaction authorized in or pursuant to Sec. 550.569, 550.570, or 550.572 that is routed through the U.S. financial system must reference the relevant Office of Foreign Assets Control license authorizing the payment to avoid the blocking or rejection of the transfer.
-
Section 550.572 is added to subpart E to read as follows:
Sec. 550.572 Brokering sales of bulk agricultural commodities.
(a) General license for brokering sales by U.S. persons. United States persons are authorized to broker the sale and exportation or reexportation by United States persons of the bulk agricultural commodities listed in appendix A to this part 550 to individuals in Libya acting for their own account, nongovernmental entities in Libya, procurement bodies of the Government of Libya identified by the Office of Foreign Assets Control as not being affiliated with the coercive organs of the state, or persons in third countries purchasing specifically for resale to any of the foregoing, provided that the
[[Page 41791]]
brokered sales meet all conditions of Sec. 550.570.
(b) Specific licensing for brokering sales by non-U.S. persons. Specific licenses may be issued on a case-by-case basis to permit United States persons to broker the sale and exportation or reexportation of bulk agricultural commodities by non-United States persons to persons in Libya or the Government of Libya. Specific licenses issued pursuant to this section will authorize the brokerage only of sales that:
(1) Are limited to the bulk agricultural commodities listed in appendix A to this part 550;
(2) Are to purchasers permitted pursuant to paragraphs (b)(2) and (e) of Sec. 550.570;
(3) Require that any performance that is subject to license application requirements of another Federal agency be contingent upon the prior authorization of that agency. (For example, items classified EAR99 under the Export Administration Regulations, 15 CFR parts 730 through 774, may in certain instances require a license from the Department of Commerce, Bureau of Export Administration. See, e.g., 15 CFR 736.2(b)(5), 744.2 through 744.4, 744.7, and 744.10; see also 22 CFR 123.9.)
(c) No debit to blocked accounts. Payment for any brokerage fee earned pursuant to this section may not involve a debit to an account blocked pursuant to this part.
(d) Recordkeeping and reporting requirements. Attention is drawn to the recordkeeping, retention, and reporting requirements of Secs. 501.601 and 501.602.
-
Section 550.573 is added to subpart E to read as follows:
Sec. 550.573 Travel transactions in connection with licensed sales of agricultural commodities and products, medicine, and medical products.
Travel transactions to, from, and within Libya for the sole purpose of negotiating contracts authorized by Sec. 550.569 or Sec. 550.570 are authorized. Travel transactions related to installation or servicing of medical equipment sold pursuant to Sec. 550.569 must be authorized by specific license. See Sec. 501.801(b) of this chapter for specific licensing procedures.
Note to Sec. 550.573. U.S. passports must be validated by the U.S. Department of State for travel to Libya.
-
Appendix A to part 550 is added to read as follows:
Appendix A to Part 550--Bulk Agricultural Commodities
Notes:
-
Appendix A sets forth those agricultural commodities eligible for the bulk agricultural commodity sales licensing procedures in Sec. 550.570.
-
Commodities are identified by their classification numbers in the Harmonized Tariff Schedule of the United States (see 19 U.S.C. 1202) (``HTS'').
HTS Number
Commodity
1001.10
Durum Wheat 1001.90
Other Wheat and Meslin, including seed, Red Spring Wheat, White Winter Wheat, ``Canadian'' Western Red Winter Wheat, Soft White Spring Wheat, and Wheat not elsewhere specified 1101.00
Wheat or Meslin Flour 1006.10
Rice in the husk (paddy or rough) 1006.20
Husked (brown) Rice 1006.30
Semi-milled or wholly milled Rice, whether or not polished or glazed 1006.40
Broken Rice 1102.30
Rice Flour 1103.14
Rice Groats, Meal and Pellets 1002.00
Rye 1003.00
Barley 1004.00
Oats 1007.00
Grain Sorghum 1005.00
Corn (Maize) 0713.31
Dried Beans including Vigna mungo (L.), Hepper, and Vigna radiata (L.) Wilczek 0713.32
Small red (adzuki) beans 0713.33
Kidney beans, including white pea beans 0713.39
Beans, other 0713.50
Broad beans and horse beans 0713.10
Dried Peas (Pisum sativum) 0713.20
Chickpeas (garbanzos) 0713.40
Lentils 0713.90
Dried leguminous vegetables, shelled, not elsewhere specified 1201.00
Soybeans, whether or not broken 2304.00
Soybean cake, meal and pellets 1507.10
Soybean oil, crude 1507.90
Soybean oil, other 1514.10
Rapeseed, colza and mustard oil, crude 1514.90
Rapeseed, colza and mustard oil, other 1515.21
Corn (Maize) oil, crude 1515.29
Corn (Maize) oil, other 1512.21
Cottonseed oil, crude 1512.29
Cottonseed oil, other 1517.90
Cottonseed oil, hydrogenated 1508.10
Peanut (ground-nut) oil, crude 1508.90
Peanut (ground-nut) oil, other 1515.50
Sesame oil 1512.11
Sunflower-seed oil, crude 1512.19
Sunflower-seed oil, other 1212.91
Sugar Beets, fresh, chilled, frozen or dried 1212.92
Sugar Cane, fresh, chilled, frozen or dried 1701.11
Cane Sugar, raw, solid form 1701.12
Beet Sugar, raw, solid form 1701.91
Cane or Beet Sugar, solid form, containing added coloring or flavoring 1701.99Cane or Beet Sugar, other, not elsewhere specified
PART 560--IRANIAN TRANSACTIONS REGULATIONS
-
The authority citation for part 560 continues to read as follows:
Authority:3 U.S.C. 301; 18 U.S.C. 2332d; 22 U.S.C. 2349aa-9; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); E.O. 12613, 52 FR 41940, 3 CFR, 1987 Comp., p. 256; E.O. 12957, 60 FR 14615, 3 CFR, 1995 Comp., p. 332; E.O. 12959, 60 FR 24757, 3 CFR, 1995 Comp., p. 356; E.O. 13059, 62 FR 44531, 3 CFR, 1997 Comp., p. 217.
Subpart D--Interpretations
-
Section 560.405 is added to subpart D to read as follows:
Sec. 560.405 Transactions incidental to a licensed transaction authorized.
Any transaction ordinarily incident to a licensed transaction and necessary to give effect thereto is also authorized, except:
(a) A transaction by an unlicensed Iranian governmental entity or involving a debit or credit to an Iranian account not explicitly authorized within the terms of the license;
(b) Provision of any transportation services to or from Iran not explicitly authorized in or pursuant to this part other than discharging licensed or exempt cargo there;
(c) Distribution or leasing in Iran of any containers or similar goods owned or controlled by United States persons after the performance of transportation services to Iran; and
(d) Financing of licensed sales for exportation or reexportation of agricultural commodities or products, medicine or medical equipment to Iran or the Government of Iran. See Sec. 560.532.
Subpart E--Licenses, Authorizations, and Statements of Licensing Policy
-
Section 560.530 is added to subpart E to read as follows:
Sec. 560.530 Commercial sales of agricultural commodities and products, medicine, and medical equipment.
(a) General license for executory contracts. Entry into executory contracts is authorized for the following transactions with nongovernmental
[[Page 41792]]
entities in Iran or procurement bodies of the Government of Iran not affiliated with the coercive organs of the state, provided that performance of the executory contracts (including any preparatory activities, payments or deposits related to such executory contracts) is contingent upon the prior authorization of the Office of Foreign Assets Control in or pursuant to this part:
(1) The sale of agricultural commodities and products, if those commodities and products are intended for ultimate consumption in Iran as:
(i) Food by humans (including live animals, raw, processed and packaged foods) or animals (including animal feeds);
(ii) Seeds for food crops; and
(iii) Reproductive materials (such as live animals, fertilized eggs, embryos and semen) for the production of food animals; and
(2) The sale of medicines (including those administered by injection) and medical equipment for use in Iran, if those medicines and medical equipment are not listed on the Commerce Control List in the Export Administration Regulations, 15 CFR part 774, supplement no. 1 (excluding items classified EAR99), as of the date of exportation or reexportation. (EAR99 items may in certain instances require a license from the Department of Commerce, Bureau of Export Administration. See, e.g., 15 CFR 736.2(b)(5), 744.2 through 744.4, 744.7, and 744.10.)
Note to paragraph (a) of Sec. 560.530. See Sec. 560.531 with respect to the availability of specific licenses for entry into and performance of contracts for sales of certain bulk agricultural commodities.
(b) Required terms of executory contracts. The authorization contained in paragraph (a) of this section applies only to executory contracts that:
(1) Disclose all parties with an interest in the sales transaction. If the goods are being sold to a purchasing agent in Iran, the executory contract must identify the agent's principals at the wholesale level for whom the purchase is being made;
(2) Provide only for sales at prevailing market prices;
(3) Set forth all terms of sale (e.g., purchase price, quantity, date of shipment, financing), except that dates for contract performance may be made dependent upon the date a specific license pursuant to paragraph (d) of this section is obtained from the Office of Foreign Assets Control;
(4) Make any performance involving the exportation or reexportation of any goods, technology (including technical data, software, or other information) or services that are subject to license application requirements of another Federal agency contingent upon the prior authorization of that agency. (For example, items classified EAR99 under the Export Administration Regulations, 15 CFR parts 730 through 774, may in certain instances require a license from the Department of Commerce, Bureau of Export Administration. See, e.g., 15 CFR 736.2(b)(5), 744.2 through 744.4, 744.7, and 744.10; see also 22 CFR 123.9); and
(5) Provide for payment terms consistent with the provisions of Sec. 560.532.
(c) Ineligible purchasers. Nothing in this section permits entry into or performance of a sales contract with a person specifically named in appendix A to this chapter V or in appendix A to this part 560, other than a procurement body of the Government of Iran identified by the Office of Foreign Assets Control as not being affiliated with the coercive organs of the state.
Note to paragraph (c) of Sec. 560.530. Information on ineligible purchasers and eligible procurement bodies will be published in the Federal Register and may be found on the Office of Foreign Assets Control's Internet site: http://www.treas.gov/ofac, or on its fax- on-demand system: 202/622-0077.
(d) Specific licenses for performance under executory contracts. Specific licenses may be issued on a case-by-case basis to permit the performance of executory contracts meeting the requirements of paragraphs (a) and (b) of this section. See Sec. 501.801(b) of this chapter with respect to specific licensing procedures.
(e) Recordkeeping and reporting requirements. Attention is drawn to the recordkeeping, retention, and reporting requirements of Secs. 501.601 and 501.602.
-
Section 560.531 is added to subpart E to read as follows:
Sec. 560.531 Commercial sales of certain bulk agricultural commodities.
(a) Sales of bulk agricultural commodities by licensed sellers. Specific licenses may be issued on a case-by-case basis to permit the sale and exportation or reexportation to persons in Iran or the Government of Iran of bulk agricultural commodities intended for ultimate consumption in Iran as food by humans or animals (including animal feeds) and seeds for food crops, for sales meeting all requirements of paragraph (b) of this section.
(b) Required contract terms for commercial sales of bulk agricultural commodities. Specific licenses issued pursuant to this section will authorize entry into and performance only of contracts that:
(1) Provide for the sale and exportation or reexportation only of bulk agricultural commodities listed in appendix B to this part 560;
(2) Fully identify the purchasers of the bulk agricultural commodities, including (for sales through persons in third countries) those to whom the commodities are to be resold, and do not include as a purchaser any person in Iran or any person within the definition of the term Government of Iran other than:
(i) A private individual in Iran acting for his or her own account;
(ii) A nongovernmental entity in Iran; or
(iii) A procurement body of the Government of Iran identified by the Office of Foreign Assets Control as not being affiliated with the coercive organs of the state;
(3) Provide only for sales at prevailing market prices;
(4) Make any performance involving the exportation or reexportation of any goods, technology (including technical data, software, or other information) or services that are subject to license application requirements of another Federal agency contingent upon the prior authorization of that agency. (For example, EAR99 items may in certain instances require a license from the Department of Commerce, Bureau of Export Administration. See, e.g., 15 CFR 736.2(b)(5), 744.2 through 744.4, 744.7, and 744.10; see also 22 CFR 123.9); and
(5) Provide for payment terms consistent with the provisions of Sec. 560.532.
(c) Recordkeeping and reporting requirements. Attention is drawn to the recordkeeping, retention, and reporting requirements of Secs. 501.601 and 501.602.
(d) Other commodities and products. Requests may be made to the Office of Foreign Assets Control for specific licenses analogous to those available pursuant to paragraph (a) of this section where the applicant demonstrates to the satisfaction of the Office of Foreign Assets Control that, in light of industry practices, sales of the particular agricultural commodity or product, medicine, or medical equipment are impracticable under the executory contract licensing procedures contained in Sec. 560.530.
(e) Ineligible purchasers. Nothing in this section permits entry into or performance of a sales contract with a person specifically named in appendix A to this chapter V or in appendix A to this part 560, other than a procurement body of the Government of Iran identified by the Office of Foreign
[[Page 41793]]
Assets Control as not being affiliated with the coercive organs of the state.
Note to paragraph (e) of Sec. 560.531. Information on ineligible purchasers and eligible procurement bodies will be published in the Federal Register and may be found on the Office of Foreign Assets Control's Internet site: http://www.treas.gov/ofac, or on its fax- on-demand system: 202/622-0077.
-
Section 560.532 is added to subpart E to read as follows:
Sec. 560.532 Payment for and financing of commercial sales of agricultural commodities and products, medicine, and medical equipment.
(a) General license for payment terms. The following payment terms for sales of agricultural commodities and products, medicine, and medical equipment pursuant to Secs. 560.530 and 560.531 are authorized:
(1) Payment of cash in advance;
(2) Sales on open account, provided that the account receivable may not be transferred by the person extending the credit; or
(3) Financing by third-country financial institutions that are neither United States persons nor Government of Iran entities. Such financing may be confirmed or advised by U.S. financial institutions.
(b) Specific licenses for alternate payment terms. Specific licenses may be issued on a case-by-case basis for payment terms and trade financing not authorized by the general license in paragraph (a) of this section for sales pursuant to Secs. 560.530 and 560.531, except that such financing may not be provided by the Government of Iran. See Sec. 501.801(b) of this chapter for specific licensing procedures.
(c) No use of Iranian accounts. Nothing in this section authorizes payment terms or trade financing involving a debit or credit to an Iranian account.
(d) Transfers through the U.S. financial system. Any payment relating to a transaction authorized in or pursuant to Sec. 560.530, 560.531, or 560.533 that is routed through the U.S. financial system must reference the relevant Office of Foreign Assets Control license authorizing the payment to avoid the rejection of the transfer. See Sec. 560.516(b).
-
Section 560.533 is added to subpart E to read as follows:
Sec. 560.533 Brokering sales of bulk agricultural commodities.
(a) General license for brokering sales by U.S. persons. United States persons are authorized to broker the sale by United States persons of the bulk agricultural commodities listed in appendix B to this part 560 to individuals in Iran acting for their own account, nongovernmental entities in Iran, procurement bodies of the Government of Iran identified by the Office of Foreign Assets Control as not being affiliated with the coercive organs of the state, or persons in third countries purchasing specifically for resale to any of the foregoing, provided that the brokered sales meet all conditions of Sec. 560.531.
(b) Specific licensing for brokering sales by non-U.S. persons. Specific licenses may be issued on a case-by-case basis to permit United States persons to broker the sale and exportation or reexportation of bulk agricultural commodities by non-United States persons to persons in Iran or the Government of Iran. Specific licenses issued pursuant to this section will authorize the brokerage only of sales that:
(1) Are limited to the bulk agricultural commodities listed in appendix B to this part 560;
(2) Are to purchasers permitted pursuant to paragraphs (b)(2) and (e) of Sec. 560.531;
(3) Require that any performance that is subject to license application requirements of another Federal agency be contingent upon the prior authorization of that agency. (For example, items classified EAR99 under the Export Administration Regulations, 15 CFR parts 730 through 774, may in certain instances require a license from the Department of Commerce, Bureau of Export Administration. See, e.g., 15 CFR 736.2(b)(5), 744.2 through 744.4, 744.7, and 744.10; see also 22 CFR 123.9.)
(c) No debit to an Iranian account. Payment for any brokerage fee pursuant to this section may not involve a debit or credit to an Iranian account.
(d) Recordkeeping and reporting requirements. Attention is drawn to the recordkeeping, retention, and reporting requirements of Secs. 501.601 and 501.602.
Appendix A to Part 560 [Redesignated]
-
The appendix to part 560 is redesignated as Appendix A to Part 560.
-
Appendix B to part 560 is added to read as follows:
Appendix B to Part 560--Bulk Agricultural Commodities
Notes:
-
Appendix B sets forth those agricultural commodities eligible for the bulk agricultural commodity sales licensing procedures in Sec. 560.531.
-
Commodities are identified by their classification numbers in the Harmonized Tariff Schedule of the United States (see 19 U.S.C. 1202) (``HTS'').
HTS Number
Commodity
1001.10
Durum Wheat 1001.90
Other Wheat and Meslin, including seed, Red Spring Wheat, White Winter Wheat, ``Canadian'' Western Red Winter Wheat, Soft White Spring Wheat, and Wheat not elsewhere specified 1101.00
Wheat or Meslin Flour 1006.10
Rice in the husk (paddy or rough) 1006.20
Husked (brown) Rice 1006.30
Semi-milled or wholly milled Rice, whether or not polished or glazed 1006.40
Broken Rice 1102.30
Rice Flour 1103.14
Rice Groats, Meal and Pellets 1002.00
Rye 1003.00
Barley 1004.00
Oats 1007.00
Grain Sorghum 1005.00
Corn (Maize) 0713.31
Dried Beans including Vigna mungo (L.), Hepper, and Vigna radiata (L.) Wilczek 0713.32
Small red (adzuki) beans 0713.33
Kidney beans, including white pea beans 0713.39
Beans, other 0713.50
Broad beans and horse beans 0713.10
Dried Peas (Pisum sativum) 0713.20
Chickpeas (garbanzos) 0713.40
Lentils 0713.90
Dried leguminous vegetables, shelled, not elsewhere specified 1201.00
Soybeans, whether or not broken 2304.00
Soybean cake, meal and pellets 1507.10
Soybean oil, crude 1507.90
Soybean oil, other 1514.10
Rapeseed, colza and mustard oil, crude 1514.90
Rapeseed, colza and mustard oil, other 1515.21
Corn (Maize) oil, crude 1515.29
Corn (Maize) oil, other 1512.21
Cottonseed oil, crude 1512.29
Cottonseed oil, other 1517.90
Cottonseed oil, hydrogenated 1508.10
Peanut (ground-nut) oil, crude 1508.90
Peanut (ground-nut) oil, other 1515.50
Sesame oil 1512.11
Sunflower-seed oil, crude 1512.19
Sunflower-seed oil, other 1212.91
Sugar Beets, fresh, chilled, frozen or dried 1212.92
Sugar Cane, fresh, chilled, frozen or dried 1701.11
Cane Sugar, raw, solid form 1701.12
Beet Sugar, raw, solid form 1701.91
Cane or Beet Sugar, solid form, containing added coloring or flavoring 1701.99Cane or Beet Sugar, other, not elsewhere specified
[[Page 41794]]
Dated: July 26, 1999. R. Richard Newcomb, Director, Office of Foreign Assets Control.
Approved: July 26, 1999. Elisabeth A. Bresee, Assistant Secretary (Enforcement), Department of the Treasury.
[FR Doc. 99-19628Filed7-27-99; 4:18 pm]
BILLING CODE 4810-25-F
