Iranian Carpets and Foodstuffs Final Rule

Importation of Certain Foodstuffs and Carpets

To implement the USG commitment set out in section 5.1.3 of Annex II and section 17.5of Annex V of the JCPOA to license the importation into the United States of Iranian-origincarpets and foodstuffs, including pistachios and caviar, OFAC is adding § 560.534 to the ITSR toauthorize by general license the importation into the United States of, and dealings in, certainIranian-origin foodstuffs and carpets from Iran or a third country. OFAC’s publication of thisgeneral license as an amendment to the ITSR fulfills the requirements of section 103(d)(2)(A) ofthe Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010, as amended,(Pub. L. 111195) (22 U.S.C. 8501-8551) (CISADA). In addition, to fulfill the requirements ofsection 103(d)(2)(B) of CISADA, the Secretary of State is submitting to the appropriatecongressional committees a certification in writing that it is in the national interest of the UnitedStates to provide an exception to the prohibition on the importation of Iranian-origin goods to theextent required to implement the sanctions commitment described in section 5.1.3 of Annex II ofthe JCPOA and a report describing the reasons for this exception.

Section 560.534(a) authorizes the importation into the United States of Iranian-originfoodstuffs intended for human consumption that are classified under chapters 223 of theHarmonized Tariff Schedule of the United States (HTS). Items that are classified in chapters 2-23 of the HTS that are not foodstuffs intended for human consumption are not authorized forimportation into the United States by this section. This section also authorizes the importationinto the United States of Iranian-origin carpets and other textile floor coverings and carpets usedas wall hangings that are classified under chapter 57 or heading 9706.00.0060 of the HTS. Items that are classified under heading 9706.00.0060 (“Antiques of an age exceeding one hundred
years/Other”) that are not carpets an
d other textile wall coverings or carpets used as wall
hangings are not authorized for importation into the United States by this section.

Section 560.534(b) authorizes U.S. persons, wherever located, to engage in transactions
or dealings in or related to such Iranian-origin foodstuffs and carpets, provided that such
transactions or dealings do not involve or relate to goods, technology, or services for exportation,
reexportation, sale, or supply, directly or indirectly, to Iran, the Government of Iran, an Iranian
financial institution, or any other person whose property and interests in property are blocked
pursuant to § 560.211 of the ITSR, other than services described in §
560.405 (“Transactions
ordinarily incident to a licensed transaction authorized) and transfers of funds described in
§ 560.5

§ 560.5
16 (“Transfers of funds involving Iran”). Section 560.534(c) clarifies that § 560.534(a)-
(b) does not authorize the importation into the United States of goods that are under seizure or
detention by the Department of Homeland Security, or of goods for which forfeiture proceedings
have commenced or of goods that have been forfeited to the U.S. Government. Section
560.534(d) clarifies that nothing in § 560.534 authorizes the debiting or crediting of Iranian
accounts, as defined in § 560.320.

Transactions ordinarily incident to the transactions authorized in § 560.534 and necessary
to give effect thereto also are authorized as set forth in § 560.405. OFAC is amending § 560.405
by inserting new paragraph (f), which clarifies that the scope of authorized incidental transactions does not include letter of credit services relating to transactions authorized in § 560.534. Those letter of credit services that are authorized are set forth separately in
paragraphs (a) and (b) of § 560.535, which OFAC is also adding to the ITSR. Please see

§§ 560.405(b) and 560.516 regarding transfers of funds in connection with licensed activities.
Brokering services relating to transactions authorized by this final rule also are authorized. See
§ 560.535(c).


Final Rule document


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