Jul

20

Update on Update 2011: Sanctions


Posted by at 5:58 pm on July 20, 2011
Category: Iran SanctionsOFAC

Iran Air Crash near OrumiyehNothing much of interest at the Sanctions breakout yesterday during the 2011 Update conference held by the Bureau of Industry and Security. The panel members included two people from the Office of Foreign Assets Control (“OFAC”) who went over some aspects of the new Libya sanctions and who conceded, during the Q&A session, that all the work on these new sanctions had slowed down their processing of licenses to Iran for food, medicine and medical devices. (Those exports are permitted under the Trade Sanctions Reform and Export Enhancement Act of 2000, commonly known as TSRA.)

The real jaw-dropper came from panel member John-Marshall Klein, Foreign Affairs Officer, Office of Terrorism Finance and Economics Sanctions Policy, at the State Department. In discussing the recent sanctions on Iran Air, he noted that these sanctions did not preclude travel on Iran Air due to the provisions of 50 U.S.C. § 1702(b)(4) added by the Berman Amendment. But Mr. Klein didn’t stop there. He went on to say that he wouldn’t advise Americans to travel now on Iran Air because the sanctions would prevent Iran Air from getting spare parts.

Because Iran Air is now designated under the Weapons of Mass Destruction Proliferators Regulations, this means that the provision in section 560.528 of the Iranian Transaction Regulations which permits OFAC to license on a case-by-case basis spare parts necessary for the safety of civil aviation would not be strictly applicable. But that is not an exception made by OFAC out of the goodness of its own heart; that exception is required by the United States’s adherence to the Convention on International Civil Aviation, article 44 of which would prohibit the United States from taking actions that endanger civil aviation. And there is nothing that would prohibit a case-by-case licensing policy under the WMD proliferation regulations in cases of parts needed to promote the safety of civil aviation.

What Mr. Klein is saying is that it’s now the policy of the United States to use the sanctions against Iran Air in a way that will endanger the safety of its aircraft and its passengers. Even if true, and even if consistent with the United States’s treaty obligations, is this something that the U.S. government should openly admit? It can only be hoped that Mr. Klein was wrong.

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Copyright © 2011 Clif Burns. All Rights Reserved.
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5 Comments:


Clif — Thanks for the update, very helpful; Being that I could not make it this year. I appreciate you sharing your insight and notes.

Comment by Mike on July 20th, 2011 @ 7:49 pm

Not admitting the policy is also problematic. There are a lot of Iranian Americans who travel back and forth to Iran to visit family and/or to take care of sick family members and/or probate matters. Keep in mind the first generation of Iranian Americans to immigrate to the U.S. are coming to an age where their parents are beginning to pass away or become unable to care for themselves. As a result this has caused a lot of folks to travel back to Iran in recent years to handle family related matters.

As such, these Iranian Americans who are also U.S. citizens or green card holders are running a tremendous risk in flying Iran Air. As embarrassing as it may be to openly admit that the sanctions against Iran Air unintentionally endanger human lives, I believe there is still a duty to at least admit to or warn our own citizens of the dangers of flying Iran Air.

Just my two cents.

Comment by Erich Ferrari on July 21st, 2011 @ 7:52 am

I agree Eric that my rhetorical question might need some tempering. The U.S. shouldn’t admit on diplomatic grounds its attacks on civilian aviation, if in fact it intends to withhold all parts from Iran Air. But it should admit it on humanitarian grounds to protect those people it is intentionally endangering. The larger point is that the U.S. shouldn’t pursue a policy to make certain civil aviation less safe, particularly where that policy — at least in the case of spare parts — will have a negligible effect on Iran’s nuclear proliferation activities.

Comment by Clif Burns on July 21st, 2011 @ 9:04 am

I respectfully disagree. If Iran was able to circumvent ITAR and EAR prohibitions and obtain almost anything they desired (including nuclear!) via other countries I think they will find plenty of sources for commonplace commercial parts in widespread use in civil aviation. To say that we are endangering the flying public on Iran Air is akin to saying that the House wants disabled children, widows, and orphans to fend for themselves on the streets unless we provide another blank check to the executive branch.

Comment by GW on July 21st, 2011 @ 9:12 am

@GW – If Iran can so easily circumvent the sanctions, then what is their point? Other than to make it look like we want to harm civil aviation.

Comment by Clif Burns on July 21st, 2011 @ 10:03 am