Newsflash Export Control Law, March 2011

Export to Iran/simpler payment transactions

The conducting of business with Iran has recently become more difficult due to the so-called Iran Embargo Regulation (EU/961/2010 dated 25 October 2010) with its numerous additional prohibitions or authorisation obligations. Nevertheless, even after the Iran Embargo Regulation came into force a large number of business transactions with Iran are legal. However, even these lawful export transactions have been made difficult indirectly because the regulations governing the reporting and authorisation obligations with respect to payment transactions also extend to these exports. In other words: even if the delivery of goods was legally admissible, the receipt of payments for the delivery made was frequently uncertain.

The situation of the exporters has improved to a certain extent as a result of the “General Licence for Incoming Money Transfers from Iran" dated 28 February 2011 (Federal Gazette No. 40, Page 1018 dated 11 March 2011) which came into force on 11 March 2010).

The General Licence is worded as follows (in simplified form):

“Incoming money transfers of € 40,000 or more from an Iranian person, organisation or institution (…), which are related to the export of goods to Iran, which were reported electronically to a German customs office for export and passed to a customs office of a Member State of the European Union for export and exit, shall hereby be approved.“

This General Licence has some restrictions and does in particular not apply to

• exports prohibited by the European Iran Embargo Regulation; or
• exports requiring authorisation for which no valid authorisation had been given.

Furthermore, the General Licence does not apply if the exporter has been notified by the Federal Office of Economics and Export Control (BAFA) with respect to non-listed goods on critical uses, in particular in the military or nuclear area and these uses were known to the exporter.

The General Licence applies for a restricted period up to 29 February 2012.

A translation into the English language is not yet available.