CSMS Message: 95-000465

TO : ALL ABI BROKERS.

FROM : FRANK CROWE

SUBJECT : IRANIAN EMBARGO

DATE : 05/11/95

DATE: MAY 11, 1995

TO : ALL INTERESTED PARTIES

FROM : ASSISTANT COMMISSIONER,
OFFICE OF FIELD OPERATIONS
U. S. CUSTOMS SERVICE

SUBJECT: NEW EXECUTIVE ORDER IMPOSING ADDITIONAL SANCTIONS ON
IRAN

ON MAY 6, 1995, THE PRESIDENT SIGNED EXECUTIVE ORDER 12959 WHICH
IMPOSES NEW RESTRICTIONS ON TRANSACTIONS WITH IRAN (I HAVE
ATTACHED A COPY OF THE EXECUTIVE ORDER FOR YOUR INFORMATION) AND
BECAME EFFECTIVE MAY 7, 1995, 12:01 A.M., EASTERN DAYLIGHT TIME.

THE PURPOSE OF THIS NOTICE IS TO PROVIDE GUIDANCE ON CUSTOMS
POLICY AND PROCEDURES FOR SHIPMENTS TO AND FROM IRAN.

IN SUMMARY, THE EXECUTIVE ORDER ESSENTIALLY:

- PROHIBITS THE EXPORTATION FROM THE UNITED STATES TO IRAN OR
TO THE GOVERNMENT OF IRAN OF GOODS, TECHNOLOGY OR SERVICES,
INCLUDING TRADE FINANCING BY U.S. BANKS.

- PROHIBITS THE REEXPORTATION OF CERTAIN U.S. GOODS AND
TECHNOLOGY TO IRAN FROM THIRD COUNTRIES.

- PROHIBITS TRANSACTIONS SUCH AS BROKERING AND OTHER DEALING
BY UNITED STATES PERSONS IN IRANIAN GOODS AND SERVICES.

- PROHIBITS NEW INVESTMENTS BY UNITED STATES PERSONS IN IRAN
OR IN PROPERTY OWNED OR CONTROLLED BY THE GOVERNMENT OF
IRAN.

- PROHIBITS U.S. COMPANIES FROM APPROVING OR FACILITATING
THEIR SUBSIDIARIES' PERFORMANCE OF TRANSACTIONS THAT THEY
THEMSELVES ARE PROHIBITED FROM PERFORMING.

- CONTINUES THE 1987 PROHIBITION ON THE IMPORTATION INTO THE
UNITED STATES OF GOODS AND SERVICES OF IRANIAN ORIGIN.

- ALLOWS U.S. COMPANIES A 30-DAY PERIOD IN WHICH TO PERFORM
TRADE TRANSACTIONS PURSUANT TO CONTRACTS PREDATING THIS
ORDER THAT ARE NOW PROHIBITED.

IMPORTATIONS OF IRANIAN-ORIGIN GOODS:

THE EXISTING PROHIBITIONS WITH RESPECT TO THE IMPORTATION OF
GOODS OF IRANIAN-ORIGIN WILL BE CONTINUED.
HOWEVER, THE GENERAL LICENSE FOR HOUSEHOLD AND PERSONAL EFFECTS
OF IRANIAN ORIGIN (31 CFR 560.514) WILL BE WITHDRAWN EFFECTIVE
JUNE 6, 1995, AND WILL NOT BE UTILIZED THEREAFTER BY CUSTOMS TO
PERMIT IMPORTATIONS OF SUCH GOODS. OTHER GENERAL LICENSE IN 31
CFR PART 560 PERMITTING IMPORTATIONS OF IRANIAN-ORIGIN GOODS
(I.E., GIFTS VALUED AT $100 OR LESS ACCOMPANIED BAGGAGE INCLUDING
IRANIAN-ORIGIN GOODS VALUED AT $400 OR LESS, DIPLOMATIC IMPORTS,
AND IMPORTS RELATING TO LEGAL PROCEEDINGS) WILL BE CONTINUED
UNTIL FURTHER NOTICE.

THE EXEMPTION FOR IRANIAN-ORIGIN PUBLICATIONS HAS BEEN CONTINUED
BY THE EXECUTIVE ORDER AND "MATERIALS IMPORTED FOR NEWS
PUBLICATIONS OR NEWS BROADCAST DISSEMINATION" HAS BEEN EXPRESSLY
EXEMPTED BY THE ORDER AS WELL. THE IMPORTATION BY MAIL OF
CORRESPONDENCE AND OTHER ITEMS OF NO TANGIBLE VALUE (EXCEPT AS
PERMITTED BY THE GENERAL LICENSE NOTED ABOVE) WILL CONTINUE TO BE
ALLOWED. NO OTHER IMPORTATIONS OF IRANIAN-ORIGIN GOODS ARE
PERMITTED WITHOUT A GENERAL OR SPECIFIC LICENSE ISSUED BY OFAC.
LICENSES PREVIOUSLY ISSUED BY OFAC MAY BE HONORED THROUGH 12:01
A.M. EDT, JUNE 6, 1995, PROVIDING THE IMPORTER CERTIFIES TO
CUSTOMS THAT SUCH IMPORTATION IS PURSUANT TO A CONTRACT IN
EXISTENCE PRIOR TO MAY 7, 1995, AND THAT THE IMPORTER POSSESSES
SUCH CONTRACT AND WILL MAKE IT AVAILABLE TO CUSTOMS FOR
INSPECTION UPON REQUEST.

GOODS OF IRANIAN ORIGIN WHICH ARE DENIED ENTRY MAY NO LONGER BE
REEXPORTED TO IRAN. CUSTOMS WILL CONTINUE TO PROHIBIT THE
REEXPORTATION OF NONCOMMERCIAL, PERSONAL IMPORTATIONS OF IRANIAN
ORIGIN WHICH ARE NOT SEIZED BY CUSTOMS TO CANADA OR MEXICO
(UNLESS SUCH GOODS WERE EXPORTED TO THE U.S. FROM THOSE
COUNTRIES); NOR WILL EXPORTATIONS BE PERMITTED TO ANY COUNTRIES
TO WHICH EXPORTS FROM THE U.S. ARE PROHIBITED.

EXPORTATIONS FROM THE U.S. TO IRAN

ALL EXPORTS ARE PROHIBITED EXCEPT FOR DONATED ARTICLES TO RELIEVE
HUMAN SUFFERING, INFORMATION AND INFORMATIONAL MATERIALS,
ACCOMPANIED BAGGAGE, AND MAIL CONTAINING CORRESPONDENCE AND ITEMS
OF NO TANGIBLE VALUE.

THIS PROHIBITION BECAME EFFECTIVE AT 12:01 A.M. EDT, MAY 7, 1995,
EXCEPT THAT EXPORTS WHICH WOULD HAVE BEEN PERMITTED BEFORE MAY 7,
1995, WILL BE PERMITTED THROUGH 12:01 A.M. EDT. JUNE 6, 1995,
PROVIDED THEY ARE PURSUANT TO A CONTRACT IN EXISTENCE BEFORE
MAY 7, 1995; AS IN THE CASE OF PRE-EXISTING CONTRACT IMPORTS,
CUSTOMS WILL PERMIT THESE EXPORTS ONLY IF THE EXPORTER
CERTIFIES THAT THE EXPORTATION IS PURSUANT TO A
CONTRACT IN EXISTENCE PRIOR TO MAY 7, 1995.

CUSTOMS WILL REQUIRE AN EXPORTER STATEMENT ON THE SHIPPER'S
EXPORT DECLARATION (SED)OR BY SEPARATE LETTER THAT STATES, "THIS
SHIPMENT IS BEING EXPORTED PURSUANT TO A CONTRACT THAT WAS IN
EXISTENCE PRIOR TO MAY 7, 1995. THIS CONTRACT IS IN MY
POSSESSION AND WILL BE MADE AVAILABLE TO U.S. CUSTOMS UPON
REQUEST." IF A SEPARATE LETTER IS UTILIZED, IT MUST BE SIGNED BY
A PERSON WHO IS ALSO AUTHORIZED TO SIGN AN EXPORT DECLARATION ON
BEHALF OF THE EXPORTER. COPIES OF THIS LETTER SHOULD BE ATTACHED
TO EXPORT DOCUMENTATION ASSOCIATED WITH THE SHIPMENT, SUCH AS
EXPORT DECLARATIONS, BILLS OF LADING, AND DOCK RECEIPTS.

ANY PUBLIC QUESTIONS RELATED TO THE EXECUTIVE ORDER SHOULD BE
DIRECTED TO OFAC AT (202) 622-2480.

PETER J. BAISH
FOR SAMUEL H. BANKS

ATTACHMENT

EXECUTIVE ORDER 12959
PROHIBITING CERTAIN TRANSACTIONS WITH RESPECT TO IRAN

BY THE AUTHORITY VESTED IN ME AS PRESIDENT BY THE
CONSTITUTION AND THE LAWS OF THE UNITED STATES OF AMERICA,
INCLUDING THE INTERNATIONAL EMERGENCY ECONOMIC POWERS ACT (50 USC
1701 ET SEQ.) (IEEPA), THE NATIONAL EMERGENCIES ACT (50 USC 1601
ET SEQ.), SECTION 505 OF THE INTERNATIONAL SECURITY AND
DEVELOPMENT COOPERATION ACT OF 1985 (22 USC 2349AA-9) (ISDCA),
AND SECTION 301 OF TITLE 3, UNITED STATES CODE,

I, WILLIAM J. CLINTON, PRESIDENT OF THE UNITED STATES OF
AMERICA, IN ORDER TO TAKE STEPS WITH RESPECT TO IRAN IN ADDITION
TO THOSE SET FORTH IN EXECUTIVE ORDER NO. 12957 OF MARCH 15,
1995, TO DEAL WITH THE UNUSUAL AND EXTRAORDINARY THREAT TO THE
NATIONAL SECURITY, FOREIGN POLICY, AND ECONOMY OF THE UNITED
STATES REFERRED TO IN THAT ORDER, HEREBY ORDER:

SECTION 1. THE FOLLOWING ARE PROHIBITED, EXCEPT TO THE
EXTENT PROVIDED IN REGULATIONS, ORDERS, DIRECTIVES, OR LICENSES
THAT MAY BE ISSUED PURSUANT TO THIS ORDER, AND NOTWITHSTANDING
ANY CONTRACT ENTERED INTO OR ANY LICENSE OR PERMIT GRANTED PRIOR
TO THE EFFECTIVE DATE OF THIS ORDER: (A) THE IMPORTATION INTO THE
UNITED STATES, OR THE FINANCING OF SUCH IMPORTATION, OF ANY GOODS
OR SERVICES OF IRANIAN ORIGIN, OTHER THAN IRANIAN-ORIGIN
PUBLICATIONS AND MATERIALS IMPORTED FOR NEWS PUBLICATIONS OR NEWS
BROADCAST DISSEMINATION;

(B) EXCEPT TO THE EXTENT PROVIDED IN SECTION 203 (B) OF
IEEPA (50 USC 1702 (B)), THE EXPORTATION FROM THE UNITED STATES
TO IRAN, THE GOVERNMENT OF IRAN, OR TO ANY ENTITY OWNED OR
CONTROLLED BY THE GOVERNMENT OF IRAN, OR THE FINANCING OF SUCH
EXPORTATION, OF ANY GOODS, TECHNOLOGY (INCLUDING TECHNICAL DATA
OR OTHER INFORMATION SUBJECT TO THE EXPORT ADMINISTRATION
REGULATIONS, 15 CFR PARTS 768-799 (1994) (EAR)), OR SERVICES;

(C) THE REEXPORTATION TO IRAN, THE GOVERNMENT OF IRAN, OR TO
ANY ENTITY OWNED OR CONTROLLED BY THE GOVERNMENT OF IRAN, OF ANY
GOODS OR TECHNOLOGY (INCLUDING TECHNICAL DATA OR OTHER
INFORMATION) EXPORTED FROM THE UNITED STATES, THE EXPORTATION OF
WHICH TO IRAN IS SUBJECT TO EXPORT LICENSE APPLICATION
REQUIREMENTS UNDER ANY UNITED STATES REGULATIONS IN EFFECT
IMMEDIATELY PRIOR TO THE ISSUANCE OF THIS ORDER, UNLESS, FOR
GOODS, THEY HAVE BEEN (I) SUBSTANTIALLY TRANSFORMED OUTSIDE THE
UNITED STATES, OR (II) INCORPORATED INTO ANOTHER PRODUCT OUTSIDE
THE UNITED STATES AND CONSTITUTE LESS THAN 10 PERCENT BY VALUE OF
THAT PRODUCT EXPORTED FROM A THIRD COUNTRY;

(D) EXCEPT TO THE EXTENT PROVIDED BY SECTION 203 (B) IF
IEEPA (50 USC 1702 (B)), ANY TRANSACTION, INCLUDING PURCHASE,
SALE. TRANSPORTATION, SWAP, FINANCING, OR BROKERING TRANSACTIONS,
BY A UNITED STATES PERSON RELATING TO GOODS OR SERVICES OF
IRANIAN ORIGIN OR OWNED OR CONTROLLED BY THE GOVERNMENT OF IRAN;

(E) ANY NEW INVESTMENT BY A UNITED STATES PERSON IN IRAN OR
IN PROPERTY (INCLUDING ENTITIES) OWNED OR CONTROLLED BY THE
GOVERNMENT OF IRAN;

(F) THE APPROVAL OR FACILITATION BY A UNITED STATES PERSON
OF THE ENTRY INTO OR PERFORMANCE BY AN ENTITY OWNED OR CONTROLLED
BY AN UNITED STATES PERSON OF A TRANSACTION OR CONTRACT (I)
PROHIBITED AS TO UNITED STATES PERSONS BY SUBSECTION (C), (D), OR
(E) ABOVE, OR (II) RELATING TO THE FINANCING OF ACTIVITIES
PROHIBITED AS TO UNITED STATES PERSONS BY THOSE SUBSECTIONS, OR
OF A GUARANTY OF ANOTHER PERSON'S PERFORMANCE OF SUCH TRANSACTION
OR CONTRACT; AND

(G) ANY TRANSACTION BY ANY UNITED STATES PERSON OR WITHIN
THE UNITED STATES THAT EVADES OR AVOIDS, OR HAS THE PURPOSE OF
EVADING OR AVOIDING, OR ATTEMPTS TO VIOLATE, ANY OF THE
PROHIBITIONS SET FORTH IN THIS ORDER.

SEC. 2. FOR THE PURPOSES OF THIS ORDER:

(A) THE TERM "PERSON" MEANS AN INDIVIDUAL OR ENTITY;

(B) THE TERM "ENTITY" MEANS A PARTNERSHIP, ASSOCIATION,
TRUST, JOINT VENTURE, CORPORATION, OR OTHER ORGANIZATION;

(C) THE TERM "UNITED STATES PERSON" MEANS ANY UNITED STATES
CITIZEN, PERMANENT RESIDENT ALIEN, ENTITY ORGANIZED UNDER THE
LAWS OF THE UNITED STATES (INCLUDING FOREIGN BRANCHES), OR ANY
PERSON IN THE UNITED STATES;

(D) THE TERM "IRAN" MEANS THE TERRITORY OF IRAN AND ANY
OTHER TERRITORY OR MARINE AREA, INCLUDING THE EXCLUSIVE ECONOMIC
ZONE AND CONTINENTAL SHELF, OVER WHICH THE GOVERNMENT OF IRAN
CLAIMS SOVEREIGNTY, SOVEREIGN RIGHTS OR JURISDICTION, PROVIDED
THAT THE GOVERNMENT OF IRAN EXERCISES PARTIAL OR TOTAL DE FACTO
CONTROL OVER THE AREA OR DERIVES A BENEFIT FROM ECONOMIC ACTIVITY
IN THE AREA PURSUANT TO INTERNATIONAL ARRANGEMENTS; AND

(E) THE TERM "NEW INVESTMENT" MEANS (I) A COMMITMENT OR
CONTRIBUTION OF FUNDS OR OTHER ASSETS, OR (II) A LOAN OR OTHER
EXTENSION OF CREDIT.

SEC. 3. THE SECRETARY OF THE TREASURY, IN CONSULTATION WITH
THE SECRETARY OF STATE, IS HEREBY AUTHORIZED TO TAKE SUCH
ACTIONS, INCLUDING THE PROMULGATION OF RULES AND REGULATIONS, THE
REQUIREMENT OF REPORTS, INCLUDING REPORTS BY UNITED STATES
PERSONS OR OIL TRANSACTIONS ENGAGED IN BY THEIR FOREIGN
AFFILIATES WITH IRAN OR THE GOVERNMENT OF IRAN, AND TO EMPLOY ALL
POWERS GRANTED TO THE PRESIDENT BY IEEPA AND ISDCA AS MAY BE
NECESSARY TO CARRY OUT THE PURPOSES OF THIS ORDER. THE SECRETARY
OF THE TREASURY MAY REDELEGATE ANY OF THESE FUNCTIONS TO OTHER
OFFICERS AND AGENCIES OF THE UNITED STATES GOVERNMENT.
ALL AGENCIES OF THE UNITED STATES GOVERNMENT ARE HEREBY DIRECTED
TO TAKE ALL APPROPRIATE MEASURES WITHIN THEIR AUTHORITY TO CARRY
OUT THE PROVISIONS OF THIS ORDER.

SEC. 4. THE SECRETARY OF THE TREASURY MAY NOT AUTHORIZE THE
EXPORTATION OR REEXPORTATION TO IRAN, THE GOVERNMENT OF IRAN, OR
AN ENTITY OWNED OR CONTROLLED BY THE GOVERNMENT OF IRAN OF ANY
GOODS, TECHNOLOGY, OR SERVICES SUBJECT TO EXPORT LICENSE
APPLICATION REQUIREMENTS OF ANOTHER AGENCY OF THE UNITED STATES
GOVERNMENT, IF AUTHORIZATION OF THE EXPORTATION OR REEXPORTATION
BY THAT AGENCY WOULD BE PROHIBITED BY LAW.

SEC. 5. SECTION 1 AND 2 OF EXECUTIVE ORDER NO. 12613 OF
OCTOBER 29, 19876, AND SECTIONS 1 AND 2 OF EXECUTIVE ORDER NO.
12957 OF MARCH 15, 1995, ARE HEREBY REVOKED TO THE EXTENT
INCONSISTENT WITH THIS ORDER. OTHERWISE, THE PROVISIONS OF THIS
ORDER SUPPLEMENT THE PROVISIONS OF EXECUTIVE ORDERS NO. 12613 AND
12957.

SEC. 6. NOTHING CONTAINED IN THIS ORDER SHALL CREATE ANY
RIGHT OR BENEFIT, SUBSTANTIVE OR PROCEDURAL, ENFORCEABLE BY ANY
PARTY AGAINST THE UNTIED STATES, ITS AGENCIES OR
INSTRUMENTALITIES, ITS OFFICERS OR EMPLOYEES, OR ANY OTHER
PERSON.

SEC. 7. THE MEASURES TAKEN PURSUANT TO THIS ORDER ARE IN
RESPONSE TO ACTIONS OF THE GOVERNMENT OF IRAN OCCURRING AFTER THE
CONCLUSION OF THE 1981 ALGIERS ACCORDS, AND ARE INTENDED SOLELY
AS A RESPONSE TO THOSE LATER ACTIONS.

SEC. 8. (A) THIS ORDER IS EFFECTIVE AT 12:01 A.M., EASTERN
DAYLIGHT TIME, ON MAY 7, 1995, EXCEPT THAT (I) SECTION 1(B), (C),
AND (D) OF THIS ORDER SHALL NOT APPLY UNTIL 12:01 A.M., EASTERN
DAYLIGHT TIME, ON JUNE 6, 1995, TO TRADE TRANSACTIONS UNDER
CONTRACTS IN FORCE AS OF THE DATE OF THIS ORDER IS SUCH
TRANSACTIONS ARE AUTHORIZED PURSUANT TO FEDERAL REGULATIONS IN
FORCE IMMEDIATELY PRIOR TO THE DATE OF THIS ORDER ("EXISTING
TRADE CONTRACTS"), AND (II) LETTERS OF CREDIT AND OTHER FINANCING
AGREEMENTS WITH RESPECT TO EXISTING TRADE CONTRACTS MAY BE
PERFORMED PURSUANT TO THEIR TERMS WITH RESPECT TO UNDERLYING
TRADE TRANSACTIONS OCCURRING PRIOR TO 12:01 A.M., EASTERN
DAYLIGHT TIME, ON JUNE 6, 1995.

(B) THIS ORDER SHALL BE TRANSMITTED TO THE CONGRESS AND
PUBLISHED IN THE FEDERAL REGISTER.

/S/ WILLIAM J. CLINTON