[Federal Register: May 27, 2003 (Volume 68, Number 101)]
[Rules and Regulations]
[Page 28753-28756]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27my03-16]
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DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 575
Iraqi Sanctions Regulations; Authorizations of Non-Commercial
Funds Transfers and Related Transactions, Activities by the U.S.
Government and Its Contractors or Grantees, Privately Financed
Humanitarian Transactions, and Certain Exports and Reexports to Iraq
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Interim final rule.
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SUMMARY: The Office of Foreign Assets Control (``OFAC'') of the U.S.
Department of the Treasury is amending the Iraqi Sanctions Regulations,
to include four general licenses issued May 7, 2003. Subject to certain
conditions, these general licenses authorize the following activities
involving Iraq: non-commercial funds transfers (including family
remittances) and related transactions, activities by the U.S.
Government and its contractors or grantees, privately financed
humanitarian transactions, and certain exports and reexports to Iraq.
OFAC also is publishing a technical amendment to its regulatory
definition of the terms ``humanitarian activities,'' ``humanitarian
purposes,'' and ``humanitarian support.''
DATES: Effective May 7, 2003. Written comments must be received no
later than July 28, 2003.
ADDRESSES: Comments may be submitted to the Chief of Records, ATTN:
Request for Comments, Office of Foreign Assets Control, Department of
the Treasury, 1500 Pennsylvania Avenue, NW., Washington, DC 20220.
[[Page 28754]]
Alternatively, comments may be submitted via facsimile to the Chief of
Records at 202/622-1657 or via OFAC's Web site http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.treas.gov/offices/enforcement/ofac/comment.html
.
FOR FURTHER INFORMATION CONTACT: OFAC's Chief of Licensing, tel. 202/
622-2480, Chief of Policy Planning and Program Management, tel. 202/
622-2500, or Chief Counsel, tel. 202/622-2410.
SUPPLEMENTARY INFORMATION:
Background
On August 2, 1990, upon Iraq's invasion of Kuwait, the President
issued Executive Order 12722, declaring a national emergency with
respect to Iraq. This order, issued under the authority of, inter alia,
the International Emergency Economic Powers Act (50 U.S.C. 1701 et
seq.), the National Emergencies Act (50 U.S.C. 1601 et seq.), and
section 301 of title 3 of the U.S. Code, imposed economic sanctions,
including a complete trade embargo, against Iraq. In keeping with
United Nations Security Council Resolution 661 of August 6, 1990, and
under the United Nations Participation Act (22 U.S.C. 287c), the
President also issued Executive Order 12724 of August 9, 1990, which
imposed additional restrictions. The Iraqi Sanctions Regulations, 31
CFR part 575, implement Executive Orders 12722 and 12724 and are
administered by the Treasury Department's Office of Foreign Assets
Control (``OFAC'').
In light of recent developments in Iraq, OFAC issued four general
licenses on May 7, 2003, to authorize additional transactions involving
Iraq. The new sections published today incorporate these four general
licenses into the Iraqi Sanctions Regulations.
Paragraph (a) of new Sec. 575.529 authorizes U.S. persons to
transfer funds to any person in Iraq for non-commercial humanitarian
purposes, including family remittances, provided that no U.S. person
may transfer more than $500 per month to any person in Iraq. Paragraph
(b) authorizes U.S. financial institutions to engage in all
transactions ordinarily incident to such transfers of funds. Paragraph
(c) provides that this section does not authorize transfers from
blocked accounts.
Paragraph (a) of new Sec. 575.530 authorizes activities by the
U.S. government and its contractors or grantees. Paragraph (b)(1)
contains a restriction on the exportation or reexportation of any goods
or technology (including technical data or other information)
controlled by the Department of Commerce under the Export
Administration Regulations (15 CFR chapter VII, subchapter C) for
exportation to Iraq; any such exports or reexports must be separately
authorized by OFAC. Paragraph (b)(2) describes the circumstances in
which some exports or reexports of goods to Iraq must be submitted to
the United Nations ``661 Committee.'' Paragraph (c) requires that all
payments and funds transfers initiated pursuant to this authorization,
and all related documentation, reference this section number. Note 1 to
section 575.530 explains that the activities of any subcontractors or
other persons who are engaged to perform activities within the scope of
the relevant contract or grant are also authorized and subject to the
same restrictions. Note 2 to section 575.530 provides information
concerning the use of U.S. passports for travel to, in, or through
Iraq.
New Sec. 575.531 authorizes all transactions that are necessary to
provide privately financed humanitarian support, or to plan or prepare
for the provision of humanitarian support, to the Iraqi people in Iraq.
Paragraph (a) includes examples of some of the newly-authorized
transactions. The note to paragraph (a) references the definition of
``humanitarian support'' that appears elsewhere in the Iraqi Sanctions
Regulations. Paragraphs (b) and (c) contain special provisions on the
exportation or reexportation of goods or technology to Iraq. Paragraph
(d) provides that this new section does not authorize any transactions
with persons on the Department of Defense's 55-person Watch List.
Paragraph (e) requires that all payments and funds transfers initiated
pursuant to this authorization, and all related documentation,
reference this section number. The note to Sec. 575.531 provides
information concerning the use of U.S. passports for travel to, in, or
through Iraq.
New Sec. 575.532 authorizes the exportation from the United States
or, if subject to U.S. jurisdiction, the exportation or reexportation
from a third country to Iraq of any goods, subject to two conditions.
First, the exportation or reexportation of any goods or technology
(including technical data or other information) controlled by the
Department of Commerce under the Export Administration Regulations for
exportation to Iraq, or listed on the United Nations Goods Review List,
must be separately authorized by OFAC. Second, any exportation or
reexportation of goods to Iraq must be submitted to the United Nations
661 Committee to the extent and in the manner required under applicable
UN Security Council resolutions; for information concerning this second
condition, exporters or reexporters should contact the State Department
office identified in Sec. 575.532.
These new authorizations do not eliminate the need to comply with
other provisions of law, including any aviation, financial, or trade
requirements of agencies other than OFAC.
OFAC also is amending Sec. 575.330, which defines the terms
``humanitarian activities,'' ``humanitarian purposes,'' and
``humanitarian support.'' OFAC is amending section 575.330 to remove
the phrase ``[f]or purposes of Sec. Sec. 575.527 and 575.528,'' so
that the definition is not limited only to those two sections of the
Iraqi Sanctions Regulations.
Request for Comments
Because amendment of these regulations involves a foreign affairs
function, the provisions of Executive Order 12866 and 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. However, because of the
importance of the issues addressed in these regulations, this rule is
being issued in interim form and comments will be considered in the
development of a final rule.
Accordingly, OFAC encourages interested persons who wish to comment
to do so at the earliest possible time to permit the fullest
consideration of their views. Comments may address the impact of the
regulations on the submitter's activities, whether of a commercial,
non-commercial or humanitarian nature, as well as changes that would
improve the clarity and organization of the regulations.
The period for submission of comments will close July 28, 2003. The
address for submitting comments appears near the beginning of this
document. OFAC will consider all comments received before the close of
the comment period in developing final regulations. Comments received
after the end of the comment period will be considered if possible, but
their consideration cannot be assured. OFAC will not accept public
comments accompanied by a request that a part or all of the submission
be treated confidentially because of its business proprietary nature or
for any other reason. OFAC will return such a submission to the
originator without considering the comments in the development of final
regulations. In the
[[Page 28755]]
interest of accuracy and completeness, OFAC requires comments in
written form.
All public comments on these regulations will be a matter of public
record. Copies of the public record concerning these regulations will
be made available not sooner than August 25, 2003, and will be
obtainable from OFAC's Web site http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.treas.gov/ofac. If that
service is unavailable, written requests for copies may be sent to
Office of Foreign Assets Control, U.S. Department of the Treasury, 1500
Pennsylvania Ave, NW., Washington, DC 20220, Attn: Chief, Records
Division.
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 readable (*.PDF) formats. For
Internet access, the address for use with the World Wide Web, Telnet,
or FTP protocol is fedbbs.access.gpo.gov. This document and additional
information concerning OFAC are available from OFAC's Web site: http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.treas.gov/ofac
.
Paperwork Reduction Act
The collections of information related to these regulations can be
found in 31 CFR part 501. Pursuant to the Paperwork Reduction Act of
1995 (44 U.S.C. 3507), those collections of information have been
previously approved by the Office of Management and Budget under
control number 1505-0164.
List of Subjects in 31 CFR Part 575
Administrative practice and procedure, Banks, banking, Blocking of
assets, Exports, Foreign trade, Humanitarian aid, Imports, Iran, Iraq,
Oil imports, Penalties, Petroleum, Petroleum products, Reporting and
recordkeeping requirements, Specially designated nationals, Terrorism,
Travel restrictions.
0
For the reasons stated in the preamble, 31 CFR part 575 is amended as
set forth below:
PART 575--IRAQI SANCTIONS REGULATIONS
0
1. The authority citation for 31 CFR part 575 continues 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 C--General Definitions
0
2. Revise Sec. 575.330 to read as follows:
Sec. 575.330 Humanitarian activities, humanitarian purposes, and
humanitarian support.
The terms humanitarian activities, humanitarian purposes, and
humanitarian support mean, as these terms have been defined by the
Department of State for relevant United Nations Security Council
Resolutions on Iraq, humanitarian relief, educational, cultural,
recreational, and human rights-related activities, and activities to
ameliorate the effects of or to investigate war crimes. Such purposes
may include preparatory activities and transactions.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
3. Add a new Sec. 575.529 to subpart E to read as follows:
Sec. 575.529 Non-commercial funds transfers and related transactions.
(a) U.S. persons are authorized to transfer funds to any person in
Iraq for non-commercial humanitarian purposes, including family
remittances, provided that no U.S. person may transfer more than $500
per month to any person in Iraq.
(b) U.S. financial institutions are authorized to engage in all
transactions ordinarily incident to the transfer of funds authorized by
paragraph (a) of this section, including the opening of new
correspondent accounts for funds transfers with Iraqi financial
institutions. U.S. financial institutions may rely on originators of
funds transfers with regard to compliance with this part.
(c) This section does not authorize transfers from blocked
accounts.
0
4. Add a new Sec. 575.530 to subpart E to read as follows:
Sec. 575.530 Activities by the U.S. Government and its contractors or
grantees.
(a) Subject to the provisions of paragraph (b) of this section,
U.S. government agencies and their contractors or grantees are
authorized to engage in all transactions otherwise prohibited by
subpart B of this part that are within the scope of their official
duties or the relevant U.S. government contracts or grants.
(b)(1) The exportation from the United States or, if subject to
U.S. jurisdiction, the exportation or reexportation from a third
country to Iraq of any goods or technology (including technical data or
other information) controlled by the Department of Commerce under the
Export Administration Regulations (15 CFR chapter VII, subchapter C)
for exportation to Iraq must be separately authorized by or pursuant to
this part.
(2) If the contracting or granting U.S. government agency has
determined that the relevant contract or grant is not in support of
U.S. government humanitarian assistance or reconstruction efforts in
Iraq, or not in support of U.S. or allied forces deployed in military
contingency, humanitarian, or peacekeeping operations in Iraq, then the
exportation or reexportation of any goods to Iraq must be submitted to
the 661 Committee to the extent and in the manner required under
applicable UN Security Council resolutions. If this paragraph (b)(2)
applies to a proposed exportation or reexportation, the exporter or
reexporter should contact the Office of Peacekeeping and Humanitarian
Operations, Room 5323, U.S. Department of State, 2201 C Street NW.,
Washington, DC 20520 (tel 202/647-2708, fax 202/647-3261) for
procedures concerning submissions to the 661 Committee.
(c) All payments and funds transfers initiated pursuant to this
authorization, and all related documentation, must reference this
section number.
Note 1 to Sec. 575.530: This authorization and the restrictions
on certain exportations or reexportations extend to the activities
of any subcontractors or other persons who are engaged to perform
activities within the scope of the relevant contract or grant. See
31 CFR 575.418.
Note 2 to Sec. 575.530: U.S. citizens who wish to travel to
Iraq pursuant to this authorization may be required to apply to the
Department of State to have their passports validated for travel to
Iraq, pursuant to 22 CFR 51.73 and 51.74 and public notices issued
thereunder, including Public Notice 4283, 68 FR 8791 (February 25,
2003), as amended by Public Notice 4337, 68 FR 18722 (Apr. 16,
2003), and any subsequent public notices regarding the restriction
on the use of U.S. passports for travel to, in or through Iraq. Such
applications, if required, should be submitted to the Deputy
Assistant Secretary for Passport Services, ATTN: Office of Passport
Policy and Advisory Services, U.S. Department of State, 2401 E
Street, NW., Washington, DC 20522-0907. Such applications must
include the applicant's name, date and place of birth, dates of
proposed travel, and purpose of the trip. This general license does
not in any way create a presumption in favor of passport validation.
0
5. Add a new Sec. 575.531 to subpart E to read as follows:
[[Page 28756]]
Sec. 575.531 Privately financed humanitarian transactions.
(a) Subject to the conditions and limitations set forth in
paragraphs (b)-(e) of this section, all transactions otherwise
prohibited by subpart B of this part that are necessary to provide
privately financed humanitarian support, or to plan or prepare for the
provision of humanitarian support, to the Iraqi people in Iraq are
authorized. Transactions authorized by this section include, but are
not limited to, the exportation to Iraq of goods and services necessary
for the provision of humanitarian support, the financing of such
humanitarian support, travel-related transactions necessary to provide
humanitarian support, and related funds transfers by U.S. financial
institutions.
Note to paragraph (a): The term humanitarian support means, as
this term has been defined by the Department of State for relevant
United Nations Security Council Resolutions on Iraq, humanitarian
relief, educational, cultural, recreational, and human rights-
related activities, and activities to ameliorate the effects of or
to investigate war crimes. Such purposes may include preparatory
activities and transactions. See 31 CFR 575.330.
(b) The exportation from the United States or, if subject to U.S.
jurisdiction, the exportation or reexportation from a third country to
Iraq of any goods or technology (including technical data or other
information) controlled by the Department of Commerce under the Export
Administration Regulations (15 CFR chapter VII, subchapter C) for
exportation to Iraq or listed on the United Nations Goods Review List
must be separately authorized by or pursuant to this part.
(c) Any exportation or reexportation of goods to Iraq pursuant to
this authorization must be submitted to the United Nations 661
Committee to the extent, and in the manner, required under applicable
UN Security Council resolutions. For procedures concerning submissions
to the 661 Committee, the exporter or reexporter should contact the
Office of Peacekeeping and Humanitarian Operations, Room 5323, U.S.
Department of State, 2201 C Street NW., Washington, DC 20520 (tel 202/
647-2708, fax 202/647-3261).
(d) This section does not authorize any transactions with persons
on the Department of Defense's 55-person Watch List.
(e) All payments and funds transfers initiated pursuant to this
authorization, and all related documentation, must reference this
section number.
Note to Sec. 575.531: U.S. citizens who wish to travel to Iraq
pursuant to this authorization may be required to apply to the
Department of State to have their passports validated for travel to
Iraq, pursuant to 22 CFR 51.73 and 51.74 and public notices issued
thereunder, including Public Notice 4283, 68 FR 8791 (February 25,
2003), as amended by Public Notice 4337, 68 FR 18722 (Apr. 16,
2003), and any subsequent public notices regarding the restriction
on the use of U.S. passports for travel to, in or through Iraq. Such
applications, if required, should be submitted to the Deputy
Assistant Secretary for Passport Services, ATTN: Office of Passport
Policy and Advisory Services, U.S. Department of State, 2401 E
Street, NW., Washington, DC 20522-0907. Such applications must
include the applicant's name, date and place of birth, dates of
proposed travel, and purpose of the trip. This general license does
not in any way create a presumption in favor of passport validation.
0
6. Add a new Sec. 575.532 to subpart E to read as follows:
Sec. 575.532 Certain exports and reexports to Iraq.
The exportation from the United States or, if subject to U.S.
jurisdiction, the exportation or reexportation from a third country to
Iraq of any goods is authorized, provided that the exportation or
reexportation of any goods or technology (including technical data or
other information) controlled by the Department of Commerce under the
Export Administration Regulations (15 CFR chapter VII, subchapter C)
for exportation to Iraq, or listed on the United Nations Goods Review
List, must be separately authorized by or pursuant to this part, and
any exportation or reexportation to Iraq must be submitted to the 661
Committee to the extent and in the manner required under applicable UN
Security Council resolutions. For procedures concerning submissions to
the 661 Committee, the exporter or reexporter should contact the Office
of Peacekeeping and Humanitarian Operations, Room 5323, U.S. Department
of State, 2201 C Street NW., Washington, DC 20520 (tel 202/647-2708,
fax 202/647-3261).
Dated: May 9, 2003.
R. Richard Newcomb,
Director, Office of Foreign Assets Control.
Approved: May 20, 2003.
Juan C. Zarate,
Deputy Assistant Secretary (Terrorist Financing and Financial Crimes),
Department of the Treasury.
[FR Doc. 03-13053 Filed 5-20-03; 3:19 pm]
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