CSMS Message: 95-000786

TO : ALL ABI BROKERS.

FROM : LEO WELLS

SUBJECT : OGA-IRAN EMBARGO

DATE : 08/08/95

5216111
AUGUST 4, 1995

RES-1-FO:TC:I:E LW

CATEGORY: OGA

TO: ALL REGIONAL DIRECTORS (COMMERCIAL OPERATIONS), DISTRICT,
AREA AND PORT DIRECTORS OF CUSTOMS

FROM: DIRECTOR, OFFICE OF TRADE OPERATIONS

RE: TRADE EMBARGO AGAINST IRAN/NEW IMPORT AND EXPORT POLICY FOR
HOUSEHOLD GOODS AND CERTAIN OTHER ITEMS

PASS TO: ALL REGIONAL PROGRAM MANAGERS, NATIONAL IMPORT
SPECIALISTS, IMPORT SPECIALISTS, ENTRY OFFICERS AND
INSPECTORS AND IMPORTER AND BROKER ASSOCIATIONS

THE REGULATIONS OF THE OFFICE OF FOREIGN ASSETS CONTROL (OFAC)
IMPLEMENTING THE NEW IRANIAN SANCTIONS ON IMPORTS AND EXPORTS,
IMPOSED BY THE PRESIDENT'S EXECUTIVE ORDER 12959 (THE EO) OF
MAY 6, 1995 (60 FR 24757, DATED MAY 9, 1995), CONTAIN LIMITED
EXCEPTIONS FOR IRANIAN-ORIGIN HOUSEHOLD AND PERSONAL EFFECTS. TO
ADDRESS THIS ISSUE, OFAC ISSUED GENERAL LICENSE NO. 4 (GL 4) ON
JUNE 13, 1995. GL 4 SETS FORTH THE REQUIREMENTS AND BENEFITS OF
THE EXCEPTIONS AND PROHIBITS CERTAIN TRANSACTIONS PREVIOUSLY
AUTHORIZED UNDER THE IRANIAN TRANSACTIONS REGULATIONS (ITR). GL 4
WILL BE INCLUDED IN THE FORMAL AMENDMENTS TO THE ITR.

THE SPECIFIC LANGUAGE THAT COVERS HOUSEHOLD EFFECTS IMPORTATIONS
IS FOUND AT PARAGRAPH (C)(3) OF GL 4: "IMPORTATION OF IRANIAN-
ORIGIN HOUSEHOLD AND PERSONAL EFFECTS, INCLUDING BAGGAGE AND
ARTICLES FOR FAMILY USE, OF PERSONS ARRIVING IN THE UNITED STATES
IS AUTHORIZED; TO QUALIFY, ARTICLES INCLUDED IN SUCH EFFECTS MUST
HAVE BEEN ACTUALLY USED BY SUCH PERSONS OR THEIR FAMILY MEMBERS
ABROAD, MUST NOT BE INTENDED FOR ANY OTHER PERSON OR FOR SALE,
AND MUST NOT BE OTHERWISE PROHIBITED FROM IMPORTATION." THESE
CHANGES ARE EFFECTIVE IMMEDIATELY.

ACTIONS:

1. IMPORTATIONS OF HOUSEHOLD EFFECTS (INCLUDING IRANIAN RUGS)

- UNDER GL 4, HOUSEHOLD EFFECTS IMPORTATIONS ARE NO LONGER
LIMITED TO ONLY THOSE SITUATIONS WHERE THE GOODS HAVE BEEN
USED FOR A ONE-YEAR PERIOD. GOODS USED FOR LESS THAN ONE
YEAR WILL STILL BE ALLOWED ENTRY AS "HOUSEHOLD EFFECTS"
UNDER THE TERMS OF GL 4, BUT WILL BE SUBJECT TO DUTY AT THE
APPLICABLE RATE, SINCE THEY DO NOT MEET THE CUSTOMS
REQUIREMENTS OF 19 CFR 148.52. IN ADDITION, THERE IS NO
LONGER A 5-CARPET QUANTITY LIMIT, SO LONG AS THE NUMBER CAN
BE JUSTIFIED AS A HOUSEHOLD QUANTITY AND THERE ARE NO INDI-
CATIONS OF INTENDED COMMERCIAL USE.

- ALL HOUSEHOLD EFFECTS CLAIMS ARE TO BE CLEARED ORALLY BY
MEANS OF A CUSTOMS BAGGAGE DECLARATION (CF 6059B), OR DOCU-
MENTED BY AN EXECUTED CF 3299 (DECLARATION FOR FREE ENTRY
OF UNACCOMPANIED ARTICLES), AS APPROPRIATE. CUSTOMS OFFICERS
MAY REQUIRE SUPPLEMENTARY DOCUMENTATION OR VERIFICATION, AS
DEEMED NECESSARY.

2. DEFINITIONS FOR PURPOSES OF GENERAL LICENSE NO. 4

U.S. PERSONS INCLUDE: U.S. CITIZENS AND RETURNING PERSONS WITH
RESIDENT ALIEN, GREEN CARD, OR OTHER INS DESIGNATED RESIDENT
STATUS. (THIS DEFINITION DOES NOT INCLUDE PERSONS TRAVELLING
TO THE U.S. ON A NON-IMMIGRANT VISA OR UNDER THE VISA WAIVER
PROGRAM.)

NON-U.S. PERSONS INCLUDE: IMMIGRANTS (PERSONS ARRIVING IN THE
U.S. FOR THE FIRST TIME TO TAKE UP RESIDENCE IN THIS COUNTRY)
AND FOREIGN PERSONS RELOCATING TO THE UNITED STATES FOR A
TEMPORARY POSTING OR LIVING SITUATION.

3. NEW IRANIAN-ORIGIN HOUSEHOLD EFFECTS POLICY

NEW ACQUISITIONS BY U.S. PERSONS OVERSEAS ARE PROHIBITED. THE
EO GENERALLY PROHIBITS U.S. PERSONS FROM ACQUIRING BY ANY
MEANS ANY IRANIAN-ORIGIN GOODS AFTER 12:01 A.M. EDT ON MAY 7,
1995. PARAGRAPH (A) OF GENERAL LICENSE NO. 4 PERMITS SUCH
ACQUISITIONS IN THE U.S., AS WELL AS ALL OTHER DOMESTIC
TRANSACTIONS WITH RESPECT TO IRANIAN-ORIGIN GOODS LOCATED IN
THE U.S., ON THE ASSUMPTION THAT SUCH GOODS HAVE ENTERED THE
U.S. LAWFULLY. THIS AUTHORIZATION DOES NOT AFFECT THE STATUS
OF IRANIAN-ORIGIN PROPERTY WHICH HAS BEEN SEIZED OR DETAINED
(OR WHICH IS SUBJECT TO EITHER) FOR HAVING ENTERED THE U.S.
ILLEGALLY. (THIS AUTHORIZATION ALSO DOES NOT AFFECT THE STATUS
OF THE PROPERTY IN THE U.S. WHICH REMAINS BLOCKED UNDER THE
1979 SANCTIONS AGAINST IRAN.)

U.S. PERSONS MAY NOT ACQUIRE IRANIAN-ORIGIN PROPERTY OUTSIDE
THE U.S. AFTER MAY 6, 1995, EXCEPT PURSUANT TO CONTRACTS THAT
WERE IN PLACE PRIOR TO MAY 7; ACQUISITIONS ABROAD BY U.S.
PERSONS PURSUANT TO SUCH PRE-EXISTING CONTRACTS WERE PERMITTED
UNDER THE EO THROUGH JUNE 5, 1995.

U.S. PERSONS WHO ENTER THE U.S. WITH HOUSEHOLD EFFECTS
(INCLUDES IRANIAN RUGS) WILL CERTIFY THAT ANY ARTICLES OF
IRANIAN ORIGIN WERE ACQUIRED LEGALLY--THAT IS, ACQUIRED PRIOR
TO MAY 7, 1995, OR PRIOR TO JUNE 5, 1995, UNDER THE TERMS OF
A PRE-MAY 7, 1995, CONTRACT.

4. DECLARATION OF HOUSEHOLD EFFECTS ON CUSTOMS FORM 3299

A. SUCH EFFECTS DECLARED ON CF 3299 (PART IV.B.7) (AS ACQUIRED
ABROAD AND USED LESS THAN ONE YEAR) ARE ADMISSIBLE UNDER
THE DEFINITION OF GL 4, BUT SUBJECT TO THE APPLICABLE DUTY.

B. SUCH EFFECTS DECLARED ON CF 3299 (PART IV.B.8) (AS ACQUIRED
ABROAD AND USED FOR MORE THAN ONE YEAR) ARE ENTITLED TO
DUTY-FREE TREATMENT UNDER THE TERMS OF HARMONIZED TARIFF
SCHEDULE (HTS) NUMBER 9804.00.05 AND 19 CFR 148.52.

C. SUCH EFFECTS DECLARED ON CF 3299 (PART III OR PART
IV.C(10)) (ARTICLES EARLIER TAKEN ABROAD FOR A FOREIGN
POSTING AND BEING RETURNED) ARE ENTITLED TO DUTY-FREE
ADMISSION UNDER HTS 9804.00.45 AND 19 CFR 148.31.

D. SUCH EFFECTS DECLARED ON CF 3299 (PART III) (ARTICLES USED
BY RETURNING U.S. PERSONNEL AND EVACUEES, AS DEFINED AT
19 CFR 148.74(D), IN THEIR HOUSEHOLD ABROAD, WHEREVER
ACQUIRED) ARE ENTITLED TO DUTY-FREE ADMISSION UNDER HTS
9805.00.50.

5. U.S. PERSONS, IMMIGRANTS AND TEMPORARILY RELOCATING FOREIGNERS

- U.S. PERSONS, IMMIGRANTS AND TEMORARILY RELOCATING
FOREIGNERS ARE ENTITLED TO DUTY-FREE TREATMENT WHEN
IMPORTING HOUSEHOLD EFFECTS (INCLUDING IRANIAN-ORIGIN
CARPETS), AS DEFINED AT SUBHEADING 9804.00.05 OF HTS AND
19 CFR 148.52, IF THEY CAN AFFIRM EITHER ORALLY OR BY MEANS
OF A SIGNED CF 3299, THAT:

A. THEY HAVE USED THEM IN THEIR HOME ABROAD FOR A MINIMUM OF
ONE YEAR WITHIN THE TEN YEARS FOLLOWING THEIR LAST PRIOR
ARRIVAL IN THE U.S.; AND

B. THEY ARE INTENDED FOR THEIR OWN USE IN THE U.S., NOT FOR
ANY OTHER PERSON OR RESALE.

- U.S. PERSONS WHO AFFIRM, ORALLY OR BY EXECUTION OF A
CF 3299, THAT THEY TOOK LEGALLY ACQUIRED IRANIAN (PERSIAN)
CARPETS ABROAD IN THEIR HOUSEHOLD EFFECTS AT THE BEGINNING
OF THEIR TEMPORARY EMPLOYMENT OR RELOCATION OVERSEAS, WILL
BE ENTITLED TO DUTY-FREE TREATMENT ON THEIR RETURN WITH
THOSE ARTICLES FOR THEIR PERSONAL HOUSEHOLD USE, WHEN THEIR
TEMPORARY ASSIGNMENT IS CONCLUDED.

U.S. PERSONS AND THOSE IN THE PROCESS OF IMMIGRATING MAY
IMPORT "HOUSEHOLD EFFECTS" WHICH DO NOT MEET THE CUSTOMS
DEFINITION OF HOUSEHOLD EFFECTS FOR DUTY-FREE TREATMENT
PURPOSES, BUT DO CONFORM TO THE REQUIREMENTS OF GL 4. THAT
IS, USED, NONCOMMERCIAL, GOODS WHICH HAVE BEEN USED BY THE
IMPORTER IN HIS/HER FOREIGN HOUSEHOLD FOR LESS THAN ONE
YEAR, THAT ARE NOT FOR ANOTHER PERSON OR FOR RESALE, MAY BE
ENTERED, SUBJECT TO THE ASSESSMENT OF DUTY AT THE APPLICABLE
RATE.

THE ABOVE PROVISIONS MAY BE APPLIED IN COMBINATION. FOR
EXAMPLE, RETURNING U.S. PERSONS MAY BRING, IN ADDITION TO
EFFECTS TAKEN OUT OF THE U.S. AT THE BEGINNING OF THEIR
POSTING ABROAD, THOSE ACQUIRED ABROAD WHICH MEET EITHER THE
CUSTOMS OR THE GL 4 HOUSEHOLD EFFECTS DEFINITION CITED
ABOVE, PAYING DUTY AS APPLICABLE. NEW IMMIGRANTS MAY BRING
BOTH DUTIABLE AND DUTY-FREE GOODS MEETING THE DEFINITIONS
CITED.

6. GIFTS AND PERSONAL EFFECTS

GIFTS UP TO A VALUE OF $100 BROUGHT BY A VISITOR, AND PERSONAL
EFFECTS UP TO A VALUE OF $400 IN THE ACCOMPANYING BAGGAGE OF
AN ARRIVING PERSON, CONTINUE TO BE PERMITTED UNDER THE NEW
IRANIAN EMBARGO RULES.

7. QUESTIONS CONCERNING ISSUANCE

- QUESTIONS BY THE IMPORTING/EXPORTING TRADE SECTOR SHOULD BE
REFERRED TO OFAC AT (202) 622-2480 IF THE ISSUE CANNOT BE
RESOLVED BY CUSTOMS.

- QUESTIONS BY CUSTOMS OFFICERS CONCERNING FP F ISSUES SHOULD
BE DIRECTED TO CUSTOMS HQ., DIVISION OF TRADE COMPLIANCE,
SEIZURES AND PENALTIES, AT (202) 927-0783.

- QUESTIONS BY CUSTOMS OFFICERS CONCERNING EXPORT ISSUES
SHOULD BE DIRECTED TO CUSTOMS HQ. AT (202) 927-1550.

- QUESTIONS BY CUSTOMS OFFICERS CONCERNING ANY OTHER OPERA-
TIONAL ISSUE RELATING TO THIS ISSUANCE SHOULD BE DIRECTED TO
CUSTOMS HQ., DIVISION OF TRADE COMPLIANCE, COMMERCIAL
ENFORCEMENT, AT (202) 927-0771.

PHILIP METZGER