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Treasury Expands Allowable Exports to Iran to Facilitate Personal Communications

Tuesday, February 11, 2014
Sandler, Travis & Rosenberg Trade Report

Effective Feb. 7, the Treasury Department’s Office of Foreign Assets Control made a number of revisions to Iranian General License D-1, which authorizes the exportation to Iran of certain services, software and hardware incident to personal communications. OFAC states that these changes clarify certain aspects of this license and add certain new authorizations.

Authorized. The revised license now authorizes the following activities.

- the exportation or reexportation, directly or indirectly, from the U.S. or by U.S. persons, wherever located, to persons in Iran of fee-based services incident to the exchange of personal communications over the Internet, such as instant messaging, chat and email, social networking, sharing of photos and movies, Web browsing and blogging

- the exportation, reexportation or provision, directly or indirectly, to Iran of fee-based software subject to the Export Administration Regulations that is necessary to enable the services described above, provided that such software is designated as EAR99 or is classified under ECCN 5D992.c

- the exportation, reexportation or provision, directly or indirectly, by a U.S. person, wherever located, to Iran of fee-based software that is not subject to the EAR because it is of foreign origin and is located outside the U.S. that is necessary to enable the services described above, provided that such software would be designated EAR99 if it were located in the U.S. or would meet the criteria for classification under ECCN 5D992.c if it were subject to the EAR

- to the extent not authorized above, the exportation, reexportation or provision, directly or indirectly, to Iran of certain software and hardware incident to personal communications, as well as related services, as follows

            - in the case of hardware and software subject to the EAR, the items specified in the annex to this general license

            - in the case of hardware and software that is not subject to the EAR because it is of foreign origin and is located outside the U.S. that is exported, reexported or provided, directly or indirectly, by a U.S. person, wherever located, hardware and software that is of a type described in the annex provided that it would be designated EAR99 if it were located in the U.S. or would meet the criteria for classification under the relevant ECCN specified in the annex if it were subject to the EAR

- in the case of software not subject to the EAR because it is described in 15 CFR 734.3(b)(3) that is exported, reexported or provided, directly or indirectly, from the U.S. or by a U.S. person, wherever located, software that is of a type described in the annex

- the exportation or reexportation, directly or indirectly, from the U.S. or by a U.S. person, wherever located, of consumer-grade Internet connectivity services and the provision, sale or leasing of capacity on telecommunications transmission facilities (such as satellite or terrestrial network connectivity) incident to personal communications

- the importation into the U.S. of hardware and software authorized for exportation, reexportation or provision to Iran under 31 CFR 560.540(a) or paragraphs (a)(2) and (a)(3) of this general license by an individual entering the U.S., directly or indirectly, from Iran, provided that the items previously were exported, reexported or provided by the individual to Iran pursuant to such provisions

- the exportation or reexportation, directly or indirectly, from the U.S. or by a U.S. person, wherever located, to the government of Iran of services described in 31 CFR 560.540(a)(1) or categories (6) through (11) of the annex to this general license, provided that such services are publicly available at no cost to the user

Unauthorized. This general license does not authorize the following.

- the exportation, reexportation or provision, directly or indirectly, of the services, software or hardware specified above with knowledge or reason to know that they are intended for the government of Iran (with certain exceptions)

- the exportation, reexportation or provision, directly or indirectly, of the services, software or hardware specified above to any person whose property and interests in property are blocked pursuant to any part of 31 CFR chapter V (with certain exceptions)

- the exportation or reexportation, directly or indirectly, of commercial-grade Internet connectivity services or telecommunications transmission facilities, such as dedicated satellite links or dedicated lines that include quality of service guarantees

- the exportation or reexportation, directly or indirectly, of web-hosting services that are for commercial endeavors or of domain name registration services

- any transaction by a U.S.-owned or -controlled foreign entity otherwise prohibited by 31 CFR 560.215 if the transaction would be prohibited by any other part of chapter V if engaged in by a U.S. person or in the U.S.

- any action or activity involving any item (including information) subject to the EAR that is prohibited by, or otherwise requires a license under, part 744 of the EAR or participationin any transaction involving a person whose export privileges have been denied pursuant to part 764 or 766 of the EAR, without authorization from the Department of Commerce

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