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The Office of Foreign Assets Control has issued a General
License amending the Iraqi Sanctions Regulations, 31 C.F.R.
Part 575. In addition, President Bush has issued an Executive
Order protecting the Development Fund for Iraq and the marketing
and sale of Iraqi petroleum and petroleum products to assure
the orderly reconstruction of Iraq, the restoration of peace
and security in the country, and the development of political,
administrative, and economic institutions there. It provides
immunity from attachment or other judicial process against
the Fund or against Iraqi petroleum and petroleum products,
and "interests therein, and proceeds, obligations, or
any financial instruments of any nature whatsoever,"
arising from or related to the sale or marketing of Iraqi
petroleum or petroleum products. The text of the General License
and of the Executive Order follows:
"IRAQI SANCTIONS REGULATIONS
GENERAL LICENSE
(Granted under the authority of Section 203 of the International
Emergency Economic Powers Act (50 U.S.C. § 1702), Section
5 of the United Nations Participation Act (22 U.S.C. §?
287c), Executive Order No. 12722 of August 2, 1990, Executive
Order No. 12724 of August 9, 1990, and Parts 501 and 575 of
Title 31 of the Code of Federal Regulations.)
§ 575.533 Certain new transactions.
(a) New Transactions. Except as provided in paragraph (b)
of this section, on or after the effective date of this section,
all transactions that are otherwise prohibited by subpart
B of 31 CFR part 575 are authorized.
Note to paragraph (a): This authorization does not eliminate
the need to comply with other provisions of 31 CFR chapter
V or with other applicable provisions of law, including any
aviation, financial, or trade requirements of agencies other
than the Department of the Treasury's Office of Foreign Assets
Control. Such requirements include the International Traffic
in Arms Regulations (22 CFR chapters 120-130) administered
by the Department of State.
(b) Continued Blocking, Special Provisions for Certain Exports
and Reexports, and Additional Conditions. (1) All property
and interests in property that were blocked pursuant to subpart
B of 31 CFR part 575 as of the effective date of this section
remain blocked and subject to the prohibitions and requirements
of 31 CFR part 575.
(2) 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 31 CFR part 575.
Note to paragraph (b)(2): The term "controlled by the
Department of Commerce" means subject to a license requirement
under the Department of Commerce's Export Administration Regulations
(EAR). Items subject to a license requirement under the EAR
include items on the Commerce Control List that are listed
in section 746.3 of the EAR as requiring a license for exportation
or reexportation to Iraq, as well as items and activities
that require a license under the end-use and end-user provisions
of part 744 of the EAR. To inquire whether particular goods
or technology are controlled by the Department of Commerce
under the Export Administration Regulations for exportation
to Iraq, the exporter or reexporter should contact the Department
of Commerce, Bureau of Industry and Security.
(3) This section does not authorize any transactions with
(i) persons or organizations determined by the Director of
the Office of Foreign Assets Control to be included within
31 CFR § 575.306, (ii) persons on the Defense Department's
55-person Watch List, or (iii) persons identified by the 661
Committee pursuant to paragraphs 19 and 23 of United Nations
Security Council Resolution 1483, adopted May 22, 2003.
Note to paragraph (b)(3): Persons determined by the Director
of the Office of Foreign Assets Control to be included within
31 CFR § 575.306 are also known as specially-designated
nationals ("SDNs") of the Government of Iraq. These
persons are included in Appendix A to 31 CFR chapter V, and
an up-to-date list is maintained on the Office of Foreign
Assets Control's website at <http://www.treas.gov/ofac>.
(4) This section does not authorize any transactions with
respect to Iraqi cultural property or other items of archaeological,
historical, cultural, rare scientific, and religious importance
illegally removed from the Iraq National Museum, the National
Library, and other locations in Iraq since August 6, 1990.
Any trade in or transfer of such items, including items with
respect to which reasonable suspicion exists that they have
been illegally removed, remains prohibited by subpart B of
31 CFR part 575.
(c) Effective Date. This section is effective May 23, 2003.
Issued by direction and on behalf of the Secretary of the
Treasury:
OFFICE OF FOREIGN ASSETS CONTROL
By R. Richard Newcomb Director"
President Bush has issued an Executive Order protecting the
Development Fund for Iraq and the marketing and sale of Iraqi
petroleum and petroleum products to assure the orderly reconstruction
of Iraq, the restoration of peace and security in the country,
and the development of political, administrative, and economic
institutions there. It provides immunity from attachment or
other judicial process against the Fund or against Iraqi petroleum
and petroleum products, and "interests therein, and proceeds,
obligations, or any financial instruments of any nature whatsoever,"
arising from or related to the sale or marketing of Iraqi
petroleum or petroleum products. The text of the Executive
Order follows:
"PROTECTING THE DEVELOPMENT FUND FOR IRAQ AND CERTAIN
OTHER PROPERTY IN WHICH IRAQ HAS AN INTEREST
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, as amended (50
U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act
(50 U.S.C. 1601 et seq.), section 5 of the United Nations
Participation Act, as amended (22 U.S.C. 287c) (UNPA), and
section 301 of title 3, United States Code,
I, GEORGE W. BUSH, President of the United States of America,
find that the threat of attachment or other judicial process
against the Development Fund for Iraq, Iraqi petroleum and
petroleum products, and interests therein, and proceeds, obligations,
or any financial instruments of any nature whatsoever arising
from or related to the sale or marketing thereof, and interests
therein, obstructs the orderly reconstruction of Iraq, the
restoration and maintenance of peace and security in the country,
and the development of political, administrative, and economic
institutions in Iraq. This situation constitutes an unusual
and extraordinary threat to the national security and foreign
policy of the United States and I hereby declare a national
emergency to deal with that threat.
I hereby order:
Section 1. Unless licensed or otherwise authorized pursuant
to this order, any attachment, judgment, decree, lien, execution,
garnishment, or other judicial process is prohibited, and
shall be deemed null and void, with respect to the following:
(a) the Development Fund for Iraq, and
(b) all Iraqi petroleum and petroleum products, and interests
therein, and proceeds, obligations, or any financial instruments
of any nature whatsoever arising from or related to the sale
or marketing thereof, and interests therein, in which any
foreign country or a national thereof has any interest that
are in the United States, that hereafter come within the United
States, or that are or hereafter come within the possession
or control of United States persons.
Sec. 2. (a) As of the effective date of this order, Executive
Order 12722 of August 2, 1990, Executive Order 12724 of August
9, 1990, and Executive Order 13290 of March 20, 2003, shall
not apply to the property and interests in property described
in section 1 of this order.
(b) Nothing in this order is intended to affect the continued
effectiveness of any rules, regulations, orders, licenses
or other forms of administrative action issued, taken, or
continued in effect heretofore or hereafter under Executive
Orders 12722, 12724, or 13290, or under the authority of IEEPA
or the UNPA, except as hereafter terminated, modified, or
suspended by the issuing Federal agency and except as provided
in section 2(a) of this order.
Sec. 3. 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, group, subgroup, 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 or any jurisdiction within the
United States (including foreign branches), or any person
in the United States;
(d) The term 'Iraqi petroleum and petroleum products' means
any petroleum, petroleum products, or natural gas originating
in Iraq, including any Iraqi-origin oil inventories, wherever
located; and
(e) The term 'Development Fund for Iraq' means the fund established
on May 22, 2003, on the books of the Central Bank of Iraq,
by the Administrator of the Coalition Provisional Authority
responsible for the temporary governance of Iraq and all accounts
held for the fund or for the Central Bank of Iraq in the name
of the fund.
Sec. 4. (a) The Secretary of the Treasury, in consultation
with the Secretary of State and the Secretary of Defense,
is hereby authorized to take such actions, including the promulgation
of rules and regulations, and to employ all powers granted
to me by IEEPA and the UNPA 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 statutory authority to carry
out the provisions of this order.
(b) Nothing contained in this order shall relieve a person
from any requirement to obtain a license or other authorization
in compliance with applicable laws and regulations.
Sec. 5. This order is not intended to, and does not, create
any right, benefit, or privilege, substantive or procedural,
enforceable at law or in equity by a party against the United
States, its departments, agencies, entities, officers, employees,
or agents, or any other person."
_________
In addition, the following foreign entities have been designated
by the Secretary of State as being subject to the import ban
of the Weapons of Mass Destruction Trade Control Regulations
(31 C.F.R. Part 539). The applicable effective date of the
restrictions is given in brackets:
NORTH CHINA INDUSTRIES CORPORATION (NORINCO), China [effective
May 9, 2003]
SHAHID HEMMAT INDUSTRIAL GROUP, Iran [effective May 9, 2003].
OFAC's Nonproliferation
brochure and industry
overviews have been updated accordingly.
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