Satellite Export Controls Now Eligible to be Returned to Commerce Department Jurisdiction
On January 3, 2013, President Obama signed into law Public Law No. 112-239, the Iran Freedom and Counter-Proliferation Act of 2012 ("IFCPA" or the "Act"), as part of the National Defense Authorization Act for Fiscal Year 2013. It represents the fourth time in less than three years that the United States has enacted new legislatively-imposed sanctions against Iran.
The new law, which comes just shy of five months after the enactment of the Iran Threat Reduction and Syria Human Rights Act of 2012 [click here for a description of that statute], among other things, imposes significant new sanctions against Iran, most notably against Iran's energy, shipping and shipbuilding sectors, and persons providing Iran with certain products for those sectors or Iran's nuclear program. It also provides for sanctions against (re)insurers covering sanctionable activities/risks. This additional expansion of the current sanctions regime against Iran requires companies with business interests in the affected sectors to assess their risk exposure and evaluate their internal compliance programs to ensure that they do not run afoul of the new sanctions and are able to take advantage of the "due diligence" safe harbors contained in the law. The new statute also removes the legislatively-imposed requirement that commercial satellite export controls fall under the jurisdiction of the State Department, which should make such exports easier for U.S. companies.
Following is a brief review of the Act's key provisions.
IRAN SANCTIONS PROVISIONS
SATELLITE EXPORT CONTROL PROVISIONS
As is evident from the above, the new legislation contains a wide variety of provisions of interest to entities involved in international trade and imposes new compliance requirements, particularly for foreign companies who continue to trade with Iran in the affected sectors. The above summary provides general information in connection therewith. A careful and detailed review is required to address the impact of the new legislation, as well as of prior legislative/administrative restrictions, on any specific set of facts.
For further information, on the material presented in this Alert, please contact Melvin Schwechter (
Authorship Credit: Melvin S. Schwechter and Sammi Malek
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