Iranian Transactions and Sanctions Regulations (ITSR)

The U.S. government, through OFAC, has strict prohibitions against the importation of goods or services from Iran, and the exportation, re-exportation, sale or supply of goods, technology, or services to Iran. Essentially, unless there is a clear general license / exemption provided in the Iran sanctions, any/all activities should be considered prohibited and we would need to seek a specific license from OFAC before importing, exporting and/or providing such services from/to Iran. (see §560.201 and §560.204 of the ITSR)

Some exemptions under the Iran Transactions and Sanctions Regulations (see §560.210 of the ITSR):

(a) Personal communications. The prohibitions contained in this part do not apply to any postal, telegraphic, telephonic, or other personal communication that does not involve the transfer of anything of value.

(see also General License D-1 - General License with Respect to Certain Services, Software, and Hardware Incident to Personal Communications, which clarifies that certain hardware, software and services are permissible in connection with personal communication to/from the U.S. and Iran).

(c) Information or informational materials.

(1) The prohibitions contained in this part do not apply to the importation from any country and the exportation to any country of information or informational materials, as defined in §560.315 Information or Informational Materials, whether commercial or otherwise, regardless of format or medium of transmission.

(2) This section does not exempt from regulation or authorize transactions related to information or informational materials not fully created and in existence at the date of the transactions, or to the substantive or artistic alteration or enhancement of informational materials, or to the provision of marketing and business consulting services. Such prohibited transactions include, but are not limited to, payment of advances for information or informational materials not yet created and completed (with the exception of prepaid subscriptions for widely circulated magazines and other periodical publications); provision of services to market, produce or co-produce, create, or assist in the creation of information or informational materials; and payment of royalties with respect to income received for enhancements or alterations made by U.S. persons to such information or informational materials.

Note: according to §560.315, information or informational materials includes, but is not limited to, publications, films, posters, phonograph records, photographs, microfilms, microfiche, tapes, compact disks, CD ROMs, artworks, and news wire feeds.

(d) Travel. The prohibitions contained in this part do not apply to transactions ordinarily incident to travel to or from any country, including importation or exportation of accompanied baggage for personal use, maintenance within any country including payment of living expenses and acquisition of goods or services for personal use, and arrangement or facilitation of such travel including nonscheduled air, sea, or land voyages.

(**Note however that if a University researcher wanted to present at a conference in Iran, we would need to apply for and receive an OFAC license prior to that individual leaving for their intended trip, because such activities would be considered a “service” to Iran).

Certain educational activities permissible under the ITSR (note: each of these should be interpreted narrowly):

§560.505 Activities and services related to certain nonimmigrant and immigrant categories authorized.

(a)(1) Persons otherwise eligible for non-immigrant classification under categories A-3 and G-5 (attendants, servants and personal employees of aliens in the United States on diplomatic status), D (crewmen), F (students), I (information media representatives), J (exchange visitors), M (non-academic students), O (aliens with extraordinary ability), P (athletics, artists and entertainers), Q (international cultural exchange visitors), R (religious workers), or S (witnesses) are authorized to carry out in the United States those activities for which such a visa has been granted by the U.S. State Department or such nonimmigrant status or related benefit has been granted by the U.S. Department of Homeland Security.

(d) Paragraph (a)(1) of this section authorizes the release of technology or software to students ordinarily resident in Iran who are attending school in the United States as authorized by that paragraph, provided that all of the following requirements are met:

(1) Such release is ordinarily incident and necessary to the educational program in which the student is enrolled;

(2) The technology or software being released is designated as EAR99 under the Export Administration Regulations, 15 CFR parts 730 through 774 (the “EAR”), or constitutes Educational Information not subject to the EAR, as set forth in 15 CFR 734.9;

(3) The release does not otherwise require a license from the Department of Commerce; and

(4) The student to whom the release is made is not enrolled in school or participating in the educational program as an agent, employee, or contractor of the Government of Iran or a business entity or other organization in Iran.

General License G - Certain Academic Exchanges and the Exportation or Importation of Certain Educational Services Authorized

Educational services that fall under General License G include:

• the filing and processing of applications and the acceptance of payments for submitted applications and tuition from or on behalf of individuals who are located in Iran, or located outside Iran but who are ordinarily resident in Iran;

• the recruitment, hiring, or employment in a teaching capacity of individuals who are located in Iran, or located outside Iran but who are ordinarily resident in Iran, and regularly employed in a teaching capacity at an Iranian university, provided that no such individuals are employed in a teaching capacity within the United States without being granted appropriate visas by the U.S. Department of State or authorization from the U.S. Department of Homeland Security;

• to individuals located in Iran, or located outside Iran but who are ordinarily resident in Iran, to sign up for and to participate in undergraduate level online courses (including Massive Open Online Courses, coursework not part of a degree seeking program, and fee-based courses) provided by U.S. academic institutions in the humanities, social sciences, law, or business provided that the courses are the equivalent of courses ordinarily required for the completion of undergraduate degree programs in the humanities, social sciences, law, or business, or are introductory undergraduate level science, technology, engineering, or math courses ordinarily required for the completion of undergraduate degree programs in the humanities, social sciences, law, or business.

• U.S. persons who are actively enrolled in U.S. academic institutions are authorized to (i) participate in educational courses or engage in noncommercial academic research at Iranian universities at the undergraduate level, or (ii) participate in educational courses at the graduate level or engage in noncommercial academic research at Iranian universities in the humanities, social sciences, law, or business at levels above the undergraduate level.

• U.S. persons are authorized to export services to Iran in support of the following not-for-profit educational activities in Iran: combating illiteracy, increasing access to education, and assisting in educational reform projects.

• U.S. persons, wherever located, are authorized to administer professional certificate examinations and university entrance examinations, including, but not limited to, multiple choice standardized tests, and to provide those services that are necessary or required for admission to U.S. academic institutions, to individuals who are located in Iran or located outside Iran but who are ordinarily resident in Iran

§560.538 Authorized transactions necessary and ordinarily incident to publishing.

(a) To the extent that such activities are not exempt from this part, and subject to the restrictions set forth in paragraphs (b) through (d) of this section, U.S. persons are authorized to engage in all transactions necessary and ordinarily incident to the publishing and marketing of manuscripts, books, journals, and newspapers in paper or electronic format (collectively, “written publications”). This section does not apply if the parties to the transactions described in this paragraph include the Government of Iran. For the purposes of this section, the term “Government of Iran” includes the state and the Government of Iran, as well as any political subdivision, agency, or instrumentality thereof, which includes the Central Bank of Iran, and any person acting or purporting to act directly or indirectly on behalf of any of the foregoing with respect to the transactions described in this paragraph. For the purposes of this section, the term “Government of Iran” does not include any academic and research institutions and their personnel. Pursuant to this section, the following activities are authorized, provided that U.S. persons ensure that they are not engaging, without separate authorization, in the activities identified in paragraphs (b) through (d) of this section:

(2) Collaborating on the creation and enhancement of written publications;

(4) Substantive editing of written publications

Note that the above ‘transactions necessary and ordinarily incident to publishing’ should be interpreted narrowly, and that strict restrictions on exporting items and services to Iran apply. And, the above does not necessarily cover research collaborations with parties in Iran. For example, OFAC has made clear that one would need a specific license to conduct surveys and interviews in Iran.

Also, please be aware that while some peer review activities are permissible under the ITSR, others are not. (see OFAC’s Guidance on Certain Publishing Activities)

 

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