Last week President Obama issued an executive order implementing new sanctions against Iran aimed at those parties deemed to be engaged in human rights violations in that country. This executive order marks the second time since the passing of the Comprehensive Iran Sanctions Accountability and Divestment Act of 2010 (“CISADA”) that new sanctions have been leveled against Iran. In addition, this executive order comes one day after OFAC officially revoked the general license that was previously in place authorizing the importation into the U.S. of Iranian-origin carpets and certain foodstuffs.

The new executive order blocks the property of those individuals who have been designated for perceived human rights abuses by the Government of Iran. In other words, these new sanctions have the effect of freezing the property and assets under U.S. jurisdiction of designated parties. In addition, the executive order goes a step further by circumventing the traditional humanitarian donation exemption found in the International Emergency Economic Powers Act (“IEEPA”) and prohibits the export of articles such as clothing, food and medicine intended for humanitarian relief to the designated parties. President Obama stated that allowing such an exemption to remain in place would impair his ability to deal with the national emergency declared in Executive Order 12957. Furthermore, the new executive order prohibits the provision and/or receiving of any funds, goods, or services by or to any U.S. person to or from any of the parties designated under the executive order.

Later sections of the executive order also address the delegation of some of the President’s new authority under CISADA to other federal agencies. For example, the visa sanctions authority found in CISADA was delegated to the Secretary of State.

Of potentially good news to those parties designated by this executive order is that the President, in section 9 of the executive order, delegated the authority to remove those parties based on changed circumstances to the Secretary of Treasury. As such, it seems likely that such persons will have recourse to petition for removal from the list of designated parties under 31 C.F.R. 501.807, the regulation which currently allows Specially Designated Nationals (“SDNs”) to request reconsideration of their designation under a variety of OFAC administered sanctions programs.

The author of this blog is Erich Ferrari, an attorney specializing in OFAC litigation. If you have any questions please contact him at 202-280-6370 at 202-351-6161 or ferrari@ferrari-legal.com.