THE WHITE HOUSE
Office of the Press Secretary
(Martha's Vineyard, Massachusetts)
For Immediate Release
August 19, 1997
EXECUTIVE ORDER 13059
PROHIBITING CERTAIN TRANSACTIONS WITH RESPECT TO IRAN
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 (50
U.S.C. 1701 et seq.) ("IEEPA"), the National Emergencies Act (50 U.S.C. 1601 et
seq.), section 505 of the International Security and Development Cooperation Act of
1985 (22 U.S.C. 2349aa-9) ("ISDCA"), and section 301 of title 3, United States
Code,
I, WILLIAM J. CLINTON, President of the United States of America, in order to
clarify the steps taken in Executive Orders 12957 of March
15, 1995, and 12959 of May 6, 1995, to deal with the unusual and
extraordinary threat to the national security, foreign policy, and economy of the United
States declared in Executive Order 12957 in response to the actions and policies of the
Government of Iran, hereby order:
Section 1. Except to the extent provided in section 3 of this order or in
regulations, orders, directives, or licenses issued pursuant to this order, and
notwithstanding any contract entered into or any license or permit granted prior to the
effective date of this order, the importation into the United States of any goods or
services of Iranian origin or owned or controlled by the Government of Iran, other than
information or informational materials within the meaning of
section 203(b)(3) of IEEPA (50 U.S.C. 1702(b)(3)), is hereby prohibited.
Sec. 2. Except to the extent provided in section 3 of this order, in
section 203(b) of IEEPA (50 U.S.C. 1702(b)), or in regulations, orders, directives, or
licenses issued pursuant to this order, and notwithstanding any contract entered into or
any license or permit granted prior to the effective date of this order, the following are
prohibited:
(a) the exportation, reexportation, sale, or supply, directly or
indirectly, from the United States, or by a United States person, wherever located, of any
goods, technology, or services to Iran or
the Government of Iran, including the exportation, reexportation, sale, or supply of any
goods, technology, or services to a person in a third country undertaken with knowledge or
reason to know that:
(i) such goods, technology, or services are intended specifically for
supply, transshipment, or reexportation, directly or indirectly, to Iran or the Government
of Iran or (ii) such goods, technology, or services are intended specifically for
use in the production of, for commingling with, or for incorporation into goods,
technology, or services to be directly or indirectly supplied, transshipped, or reexported
exclusively or predominantly to Iran or the Government of Iran
(b) the reexportation from a third country, directly or indirectly,
by a
person other than a United States person of any goods, technology,
or services that have been exported from the United States,
if
(i) undertaken with knowledge or reason to know that the
reexportation is intended specifically for Iran or the Government
of Iran, and (ii) the exportation of such goods, technology,
or services to Iran from the United States was subject to export
license application requirements under any United States regulations
in effect on May 6, 1995, or thereafter is made subject to such
requirements imposed independently of the actions taken pursuant
to the national emergency declared in Executive Order 12957
provided, however, that this prohibition shall not apply to
those goods or that technology subject to export license application
requirements if such
goods or technology have been:
(A) substantially transformed into a foreign-made product
outside the United States or
(B) incorporated into a foreign-made product outside the
United States if the aggregate value of such controlled United
States goods and technology constitutes less than 10 percent
of the total value of the foreign-made product to be exported
from a third country+ADs-
(C) any new investment by a United States person in Iran
or in property, including entities, owned or controlled by the
Government of Iran
(D) any transaction or dealing by a United States person,
wherever located, including purchasing, selling, transporting,
swapping, brokering, approving, financing, facilitating, or
guaranteeing, in or related to:
(i) goods or services of Iranian origin or owned or controlled
by the
Government of Iran or
(ii) goods, technology, or services for exportation, reexportation,
sale, or supply, directly or indirectly, to Iran or the Government
of Iran
(E) any approval, financing, facilitation, or guarantee
by a United States person, wherever located, of a transaction
by a foreign person where the transaction by that foreign person
would be prohibited by this order if performed by a United States
person or within the United States and
(F) any transaction by a United States person or within the
United States that evades or avoids, or has the purpose of evading
or avoiding, or attempts to violate, any of the prohibitions
set forth in this order.
Sec. 3. Specific licenses issued pursuant to Executive
Orders 12613 (of October 29, 1987), 12957,
or 12959 continue in effect in accordance
with their terms except to the extent revoked, amended, or modified
by the Secretary of the Treasury. General licenses, regulations,
orders, and directives issued pursuant to those orders continue
in effect in accordance with their terms except to the extent
inconsistent with this order or to the extent revoked, amended,
or modified by the Secretary of the Treasury.
Sec. 4. 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, 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 (including foreign branches), or any person
in the United States
(d) the term "Iran" means the territory of Iran
and any other territory or
marine area, including the exclusive economic zone and continental
shelf, over which the Government of Iran claims sovereignty,
sovereign rights, or jurisdiction, provided that the Government
of Iran exercises partial or total de facto control over the
area or derives a benefit from economic activity in the area
pursuant to international arrangements
(e) the term "Government of Iran" includes the
Government of Iran, any political subdivision, agency, or instrumentality
thereof, and any person owned or controlled by, or acting for
or on behalf of, the Government of Iran
(f) the term "new investment" means:
(i) a commitment or contribution of funds or other assets or
(ii) a loan or other extension of credit, made after the effective
date of
Executive Order 12957 as to transactions
prohibited by that order, or
otherwise made after the effective date of Executive Order 12959.
Sec. 5. The Secretary of the Treasury, in consultation
with the Secretary of State and, as appropriate, other agencies,
is hereby authorized to take such actions, including the pro-mulga-tion
of rules and regulations, the requirement of reports, including
reports by United States persons on oil and related transactions
engaged in by their foreign affiliates with Iran or the Government
of Iran, and to employ all powers granted to me by IEEPA and
the ISDCA 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 authority to carry
out the provisions of this order.
Sec. 6. (a) The Secretary of the Treasury may authorize
the exportation or reexportation to Iran or the Government of
Iran of any goods, technology, or services also subject to export
license
application requirements of another agency of the United States
Government only if authorization by that agency of the exportation
or reexportation to Iran would be permitted by law.
(b) Nothing contained in this order shall be construed
to supersede the requirements established under any other provision
of law or to relieve a person from any requirement to obtain
a license or other authorization from another department or
agency of the United States Government in compliance with applicable
laws and regulations subject to the jurisdiction of that department
or agency.
Sec. 7. The provisions of this order consolidate the provisions
of
Executive Orders 12613, 12957, and 12959.
Executive Order 12613 and subsections (a), (b), (c), (d), and
(f) of section 1 of Executive Order 12959
are hereby revoked with respect to transactions occurring after
the effective date of this order. The revocation of those
provisions shall not alter their applicability to any trans-action
or violation occurring before the effective date of this order,
nor shall it affect the applicability of any rule, regulation,
order, license, or other form of administrative action previously
taken pursuant to Executive Orders 12613 or 12959.
Sec. 8. Nothing contained in this order shall create any
right or benefit, substantive or procedural, enforceable by
any party against the United States, its agencies or instrumentalities,
its officers or employees, or any other person.
Sec. 9. The measures taken pursuant to this order are
in response to actions of the Government of Iran occurring after
the conclusion of the 1981 Algiers Accords, and are intended
solely as a response to those later actions.
Sec. 10. (a) This order is effective at 12:01 a.m.
eastern daylight time on August 20, 1997.
(b) This order shall be transmitted to the Congress and
published in the Federal Register.
WILLIAM J. CLINTON
THE WHITE HOUSE, August 19, 1997.
