The Iran (Sanctions) (Nuclear) (EU Exit) Regulations 2019

PART 5 Trade

CHAPTER 1 Exports to Iran and related activities

Meaning of “restricted goods” and “restricted technology” in this Chapter

20.  In this Chapter—

“restricted goods” means—

(a)

military goods,

(b)

missile-list goods,

(c)

nuclear-list goods,

(d)

graphite and relevant metals,

(e)

other restricted goods;

“restricted technology” means—

(a)

military technology,

(b)

missile-list technology,

(c)

nuclear-list technology,

(d)

other restricted technology,

(e)

relevant enterprise resource planning software.

Export of restricted goods to, or for use in, Iran

21.—(1) The export of restricted goods to, or for use in, Iran is prohibited.

(2) Paragraph (1) is subject to Part 6 (Exceptions and licences).

Supply and delivery of restricted goods from a third country to Iran

22.—(1) A person must not directly or indirectly supply or deliver restricted goods from a third country to a place in Iran.

(2) Paragraph (1) is subject to Part 6 (Exceptions and licences).

(3) A person who contravenes the prohibition in paragraph (1) commits an offence, but it is a defence for a person charged with that offence to show that the person did not know and had no reasonable cause to suspect that the goods were destined (or ultimately destined) for Iran.

(4) In this regulation “third country” means a country that is not the United Kingdom, the Isle of Man or Iran.

Making available restricted goods and restricted technology

23.—(1) A person must not—

(a) directly or indirectly make restricted goods or restricted technology available to a person connected with Iran;

(b) directly or indirectly make restricted goods or restricted technology available for use in Iran.

(2) Paragraph (1) is subject to Part 6 (Exceptions and licences).

(3) A person who contravenes a prohibition in paragraph (1) commits an offence, but—

(a) it is a defence for a person charged with the offence of contravening paragraph (1)(a) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with Iran;

(b) it is a defence for a person charged with the offence of contravening paragraph (1)(b) to show that the person did not know and had no reasonable cause to suspect that the goods or technology were for use in Iran.

Transfer of restricted technology to a place in Iran or a person connected with Iran

24.—(1) A person must not—

(a) transfer restricted technology to a place in Iran;

(b) transfer restricted technology to a person connected with Iran.

(2) Paragraph (1) is subject to Part 6 (Exceptions and licences).

(3) A person who contravenes a prohibition in paragraph (1) commits an offence, but—

(a) it is a defence for a person charged with the offence of contravening paragraph (1)(a) to show that the person did not know and had no reasonable cause to suspect that the transfer was to a place in Iran;

(b) it is a defence for a person charged with the offence of contravening paragraph (1)(b) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with Iran.

Technical assistance relating to restricted goods and restricted technology

25.—(1) A person must not directly or indirectly provide technical assistance relating to restricted goods or restricted technology—

(a) to a person connected with Iran, or

(b) for use in Iran.

(2) Paragraph (1) is subject to Part 6 (Exceptions and licences).

(3) A person who contravenes a prohibition in paragraph (1) commits an offence, but—

(a) it is a defence for a person charged with the offence of contravening paragraph (1)(a) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with Iran;

(b) it is a defence for a person charged with the offence of contravening paragraph (1)(b) to show that the person did not know and had no reasonable cause to suspect that the goods or technology were for use in Iran.

Financial services and funds relating to restricted goods and restricted technology

26.—(1) A person must not directly or indirectly provide, to a person connected with Iran, financial services in pursuance of or in connection with an arrangement whose object or effect is—

(a) the export of restricted goods,

(b) the direct or indirect supply or delivery of restricted goods,

(c) directly or indirectly making restricted goods or restricted technology available to a person,

(d) the transfer of restricted technology, or

(e) the direct or indirect provision of technical assistance relating to restricted goods or restricted technology.

(2) A person must not directly or indirectly make funds available to a person connected with Iran in pursuance of or in connection with an arrangement mentioned in paragraph (1).

(3) A person must not directly or indirectly provide financial services or funds in pursuance of or in connection with an arrangement whose object or effect is—

(a) the export of restricted goods to, or for use in, Iran,

(b) the direct or indirect supply or delivery of restricted goods to a place in Iran,

(c) directly or indirectly making restricted goods or restricted technology available—

(i) to a person connected with Iran, or

(ii) for use in Iran,

(d) the transfer of restricted technology—

(i) to a person connected with Iran, or

(ii) for use in Iran,

(e) the direct or indirect provision of technical assistance relating to restricted goods—

(i) to a person connected with Iran, or

(ii) for use in Iran.

(4) Paragraphs (1) to (3) are subject to Part 6 (Exceptions and licences).

(5) A person who contravenes a prohibition in any of paragraphs (1) to (3) commits an offence, but—

(a) it is a defence for a person charged with an offence of contravening paragraph (1) or (2) (“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with Iran;

(b) it is a defence for a person charged with an offence of contravening a prohibition in paragraph (3) to show that the person did not know and had no reasonable cause to suspect that the financial services or funds (as the case may be) were provided in pursuance of or in connection with an arrangement mentioned in that paragraph.

Brokering services: non-UK activity relating to restricted goods and restricted technology

27.—(1) A person must not directly or indirectly provide brokering services in relation to an arrangement (“arrangement A”) whose object or effect is—

(a) the direct or indirect supply or delivery of restricted goods from a third country to a place in Iran;

(b) directly or indirectly making restricted goods available in a third country for direct or indirect supply or delivery—

(i) to a person connected with Iran, or

(ii) to a place in Iran;

(c) directly or indirectly making restricted technology available in a third country for transfer—

(i) to a person connected with Iran, or

(ii) to a place in Iran;

(d) the transfer of restricted technology from a place in a third country—

(i) to a person connected with Iran, or

(ii) to a place in Iran;

(e) the direct or indirect provision, in a non-UK country, of technical assistance relating to restricted goods or restricted technology—

(i) to a person connected with Iran, or

(ii) for use in Iran;

(f) the direct or indirect provision, in a non-UK country, of financial services—

(i) to a person connected with Iran, where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 26(1), or

(ii) where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 26(3);

(g) directly or indirectly making funds available, in a non-UK country, to a person connected with Iran, where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 26(1); or

(h) the direct or indirect provision of funds from a non-UK country, where arrangement A, or any other arrangement in connection with which arrangement A is entered into, is an arrangement mentioned in regulation 26(3).

(2) Paragraph (1) is subject to Part 6 (Exceptions and licences).

(3) A person who contravenes a prohibition in paragraph (1) commits an offence, but it is a defence for a person charged with that offence to show that the person did not know and had no reasonable cause to suspect that the brokering services were provided in relation to an arrangement mentioned in that paragraph.

(4) In this regulation—

“brokering service” means any service to secure, or otherwise in relation to, an arrangement, including (but not limited to)—

(a)

the selection or introduction of persons as parties or potential parties to the arrangement,

(b)

the negotiation of the arrangement,

(c)

the facilitation of anything that enables the arrangement to be entered into, and

(d)

the provision of any assistance that in any way promotes or facilitates the arrangement;

“non-UK country” means a country that is not the United Kingdom or the Isle of Man;

“third country” means—

(a)

for the purposes of paragraph (1)(a) and (b), a country that is not the United Kingdom, the Isle of Man or Iran,

(b)

for the purposes of any other provision of paragraph (1), a country that is not the United Kingdom or Iran.

(5) For the purposes of this regulation, the definition of “country” in section 62(1) of the Act does not apply.

CHAPTER 2 Imports from Iran and related activities

Import of certain goods from Iran

28.—(1) The import of the following goods, where they are consigned from Iran, is prohibited—

(a) arms and related materiel;

(b) missile-list goods;

(c) nuclear-list goods;

(d) other restricted goods.

(2) The import of the goods mentioned in paragraph (1), where they originate in Iran, is prohibited.

(3) Paragraphs (1) to (3) are subject to Part 6 (Exceptions and licences).

(4) In this regulation, “arms and related materiel” means—

(a) military goods;

(b) any goods from time to time falling with Chapter 93 of the Harmonized Commodity Description and Coding System, other than military goods.

(5) In the definition of “arms and related materiel”, “the Harmonized Commodity Description and Coding System” means the harmonized commodity description and coding system provided for under the International Convention on the Harmonized Commodity Description and Coding System as done in Brussels on 14 June 1983(1).

Supply and delivery of certain goods to a third country from a place in Iran

29.—(1) A person must not directly or indirectly supply or deliver the following goods from a place in Iran to a third country—

(a) military goods;

(b) missile-list goods;

(c) nuclear-list goods;

(d) other restricted goods.

(2) Paragraph (1) is subject to Part 6 (Exceptions and licences).

(3) A person who contravenes the prohibition in paragraph (1) commits an offence, but it is a defence for a person charged with the offence of contravening paragraph (1) to show that the person did not know and had no reasonable cause to suspect that the supply or delivery was from a place in Iran, whether directly or indirectly.

(4) In this regulation, “third country” means a country that is not the United Kingdom, the Isle of Man or Iran.

Acquisition of certain goods and technology which are located in Iran

30.—(1) A person must not directly or indirectly acquire relevant goods and technology which are located in Iran.

(2) Paragraph (1) is subject to Part 6 (Exceptions and licences).

(3) A person who contravenes a prohibition in paragraph (1) commits an offence, but it is a defence for a person charged with the offence of contravening paragraph (1)(“P”) to show that P did not know and had no reasonable cause to suspect that the person was connected with Iran.

(4) In this regulation, “relevant goods and technology” means—

(a) goods mentioned in regulation 29(1);

(b) military technology;

(c) missile-list technology;

(d) nuclear-list technology;

(e) other restricted technology.

Transfer of certain technology from a place in Iran

31.—(1) A person must not transfer relevant technology to persons outside the United Kingdom or to a place outside the United Kingdom, where the transfer is from a place in Iran.

(2) Paragraph (1) is subject to Part 6 (Exceptions and licences).

(3) A person who contravenes a prohibition in paragraph (1) commits an offence, but it is a defence for a person charged with the offence of contravening paragraph (1) to show that the person did not know and had no reasonable cause to suspect that the transfer was from a place in Iran.

(4) In this regulation, “relevant technology” means—

(a) military technology;

(b) missile-list technology;

(c) nuclear-list technology;

(d) other restricted technology.

CHAPTER 3 Other trade restrictions relation to Iran

Arrangements relating to uranium mining and certain restricted goods and technology

32.—(1) A person must not enter into an arrangement with a relevant person (“P”) where the object or effect of that arrangement is to enable P to participate in, or increase P’s participation in—

(a) a commercial activity involving uranium mining;

(b) a commercial activity involving the production or use of nuclear-list goods falling within paragraph (2) or nuclear-list technology falling within paragraph (2);

(c) a commercial activity involving missile-list goods or missile-list technology;

(d) a commercial activity involving the production of military goods or military technology; or

(e) a commercial activity involving other restricted goods or other restricted technology.

(2) Nuclear-list goods and nuclear-list technology fall within this paragraph if they are specified from time to time in the International Atomic Energy Agency document mentioned in regulation 34(2)(a)(i) or in any different version of that document as mentioned in regulation 34(2)(b).

(3) Paragraph (1) is subject to Part 6 (Exceptions and licences).

(4) A person who contravenes a prohibition in paragraph (1) commits an offence but it is a defence to show that the person did not know and had no reasonable cause to suspect that the arrangement was an arrangement mentioned in that paragraph.

(5) In this regulation—

“arrangement” includes the acceptance of a loan or credit from a relevant person;

“commercial activity” means an activity which is carried on for a commercial purpose;

“participation” includes participation independently or as part of a joint venture or partnership (and “participate” is to be construed accordingly);

“relevant person” means—

(a)

a person connected with Iran;

(b)

any person acting on behalf of, or at the direction of, a person connected with Iran.

(6) Nothing in this regulation is to be taken to limit the meaning of any prohibition in Chapter 1 or 2.

Services in relation to certain ships and aircraft

33.—(1) A person must not provide—

(a) bunkering or ship supply services in relation to a ship owned or controlled, directly or indirectly, by a person connected with Iran, where the ship is carrying relevant restricted items;

(b) engineering or maintenance services in relation to a cargo aircraft owned or controlled, directly or indirectly, by a person connected with Iran, where the aircraft is carrying relevant restricted items.

(2) Paragraph (1) is subject to Part 6 (Exceptions and licences).

(3) A person who contravenes a prohibition in paragraph (1) commits an offence, but it is a defence for a person charged with that offence to show that the person did not know and had no reasonable cause to suspect—

(a) that the ship or aircraft in question was owned or controlled, directly or indirectly, by a person connected with Iran; or

(b) that the ship or aircraft in question was carrying relevant restricted items.

(4) In this regulation—

“bunkering or ship supply services” includes—

(a)

the supply of goods for use in a ship including fuel and spare parts, whether or not for immediate use, and

(b)

any other servicing of a ship;

“relevant restricted items” means any military goods, military technology, missile-list goods or missile-list technology which have been, or are being, dealt with in contravention of a prohibition—

(a)

in any of regulations 21 to 24 (trade prohibitions relating to restricted goods and restricted technology),

(b)

in any of regulations 28 to 31 (import, supply, transfer etc of goods and technology from Iran), or

(c)

imposed by a condition of a trade licence in relation to a prohibition mentioned in paragraph (i) or (ii);

“ship” and “aircraft” have the meanings given in paragraph 37 of Schedule 1 to the Act.

CHAPTER 4 Interpretation of this Part and further provision

Interpretation of this Part

34.—(1) In this Part—

“graphite and relevant metals” means any thing falling within Annex VIIB to Council Regulation (EU) No 267/2012 of 23 March 2012 concerning restrictive measures against Iran and repealing Regulation (EU) No 961/2010, as it had effect immediately before exit day, other than any thing for the time being falling within Annex Ⅰ to Council Regulation (EC) No 428/2009 of 5 May 2009 setting up a Community regime for the control of exports, transfer, brokering and transit of dual-use items;

“military goods” means—

(a)

any thing for the time being specified in Schedule 2 to the Export Control Order 2008(2), other than any thing which is military technology, and

(b)

any tangible storage medium on which military technology is recorded or from which it can be derived;

“military technology” means any thing for the time being specified in Schedule 2 to the Export Control Order 2008 which is described as software or technology;

“missile-list goods” means any thing specified in Security Council document S/2015/546, other than any thing which is missile-list technology;

“missile-list technology” means any thing specified in Security Council document S/2015/546 which is described as software or technology;

“nuclear-list goods” means any thing for the time being specified in a relevant International Atomic Energy Agency list, other than any thing which is nuclear-list technology;

“nuclear-list technology” means any thing for the time being specified in a relevant International Atomic Energy Agency list and which is described as software or technology;

“other restricted goods” means any thing falling within Part II.A (goods) of Annex II to Council Regulation (EU) No 267/2012 of 23 March 2012 concerning restrictive measures against Iran and repealing Regulation (EU) No 961/2010, as it had effect immediately before exit day;

“other restricted technology” means any thing falling within Part II.B (technology) of Annex II to Council Regulation (EU) No 267/2012 of 23 March 2012 concerning restrictive measures against Iran and repealing Regulation (EU) No 961/2010, as it had effect immediately before exit day;

“relevant enterprise resource planning software” means software used for financial accounting, management accounting, human resources, manufacturing, supply chain management, project management, customer relationship management, data services, or access control, and which is specifically designed for use in nuclear and military industries;

“technical assistance”, in relation to goods or technology, means—

(a)

technical support relating to the repair, development, production, assembly, testing, use or maintenance of the goods or technology, or

(b)

any other technical service relating to the goods or technology;

“technology” has the meaning given in paragraph 37 of Schedule 1 to the Act;

“transfer” has the meaning given in paragraph 37 of Schedule 1 to the Act.

(2) For the purposes of the definitions of “nuclear-list goods” and “nuclear-list technology”, a thing is “specified in a relevant International Atomic Energy Agency list” if—

(a) the thing is specified in either of the following International Atomic Energy Agency documents—

(i) INFCIRC/254/Rev.12/Part 1;

(ii) INFCIRC/254/Rev.9/Part 2; or

(b) where a different version of document INFCIRC/254/Part 1 or document INFCIRC/254/Part 2 is published on the United Nations website for the purposes of paragraph 2(a) of Annex B to resolution 2231, the thing is specified in such a version.

(3) For the purposes of this Part a person is to be regarded as “connected with” Iran if the person is—

(a) the Government of Iran or a public authority of the Government of Iran,

(b) an individual who is, or an association or combination of individuals who are, ordinarily resident in Iran,

(c) an individual who is, or an association or combination of individuals who are, located in Iran,

(d) a person, other than an individual, which is incorporated or constituted under the law of Iran,

(e) a person, other than an individual, which is domiciled in Iran, or

(f) a person, other than an individual, which is owned or controlled directly or indirectly (within the meaning of regulation 7) by a person within any of sub-paragraphs (a) to (e).

(4) In this Part any reference to the United Kingdom includes a reference to the territorial sea.

Circumventing etc prohibitions

35.—(1) A person must not intentionally participate in activities knowing that the object or effect of them is, whether directly or indirectly—

(a) to circumvent any of the prohibitions in Chapters 1 to 3 of this Part, or

(b) to enable of facilitate the contravention of any such prohibition.

(2) A person who contravenes a prohibition in paragraph (1) commits an offence.

Defences

36.—(1) Paragraph (2) applies where a person relies on a defence under Chapters 1 to 3 of this Part.

(2) If evidence is adduced which is sufficient to raise an issue with respect to the defence, the court must assume that the defence is satisfied unless the prosecution proves beyond reasonable doubt that it is not.

(1)

United Nations Treaty Series, vol. 1503, p.3.

(2)

S.I. 2008/3231. Schedule 2 was substituted by S.I. 2017/85 and subsequently amended by S.I. 2017/697 and S.I. 2018/165. There are other instruments which amend other parts of the Order.