The Export Control (Iran Sanctions) Order 2012

EXPLANATORY NOTE

(This note is not part of the Order)

This Order makes provision relating to the enforcement of certain restrictive measures against Iran set out in Council Regulation (EU) No 267/2012 of 23 March 2012 repealing Council Regulation (EU) No 961/2010 (OJ L 88, 24.3.2012, p1) and Council Regulation (EU) No 264/2012 of 23 March 2012 amending Regulation (EU) No 359/2011 (OJ L 87, 24.3.2012, p26) (“the Iran Regulations”).

The restrictive measures include prohibitions on trade, technical assistance, financing, financial assistance and brokering in respect of the following: equipment which may be used for internal repression; goods and technology specified in the Common Military List of the European Union; telecommunications monitoring equipment for use by the Iranian regime; equipment and technology for the Iranian oil and gas industry; and newly printed or unissued Iranian denominated banknotes and minted coinage. It also includes restrictions on the trade in gold, precious metals and diamonds with the Government of Iran as well as prohibitions on the import, purchase, transport and financial assistance of Iranian crude oil or petrochemical products and on the participation in certain infrastructure projects in Iran and investments in such projects.

Article 1(2) revokes the Export Control (Iran) Order 2011 (S.I. 2011/1297) which currently makes provisions for offences and penalties for contravention of the trade restrictions against Iran which have been replaced and extended by the Iran Regulations.

Article 3 provides that any authorisations allowing otherwise prohibited acts which were issued under Council Regulation (EC) No 961/2010 continue to have effect for the purposes of the Iran Regulations.

Articles 4 to 16 create offences for contravention of the provisions of the Iran Regulations referred to there. There are already offences relating to prohibited importation and exportation of goods in sections 50, 68 and 170 of the Customs and Excise Management Act 1979 (“the 1979 Act”) (1979 c. 2).

Article 17 supplements the provisions of the Iran Regulations that allow a competent authority to authorise activities that are otherwise prohibited. Article 17(1) makes it an offence knowingly and recklessly to provide false information for the purpose of obtaining an authorisation. Authorisations may be subject to requirements or conditions which continue even after the activity authorised has been carried out. Article 17(3) makes it an offence to fail to comply with such continuing requirements or conditions unless they were imposed after the activity was carried out or amended after that time in such a way as to give rise to non-compliance.

Article 18 sets out the penalties relating to the offences in the Order, and makes some consequential modifications to the 1979 Act to ensure that the offences covered by that Act are subject to the same penalties as those in the Order.

Article 19 ensures that the ancillary provisions which apply to the enforcement of customs and excise legislation also apply to the enforcement of the provisions of this Order.

Article 20 requires the Secretary of State to review the operation and effect of this Order and publish a report within five years after it comes into force and within every five years after that. Following a review it will fall to the Secretary of State to consider whether the Order should remain as it is, or be revoked or be amended. A further instrument would be needed to revoke the Order or to amend it.

A regulatory impact assessment has not been produced for this instrument as it has no or minimal impact on business, charities or voluntary bodies. A copy of the Explanatory Memorandum is published alongside the Order on www.legislation.gov.uk. Further information is available from the Export Control Organisation, BIS, 1 Victoria Street, London SW1H 0ET and on BIS website (w ww.bis.gov.uk).