Explanatory Statement
Issued by the Authority of the Minister for Foreign Affairs
Charter of the United Nations (Sanctions – Iran) Regulations 2008
Charter of the United Nations (Sanctions – Iran) (Export Sanctioned Goods) List Amendment Determination 2009 (No. 1)
The Charter of the United Nations (Sanctions – Iran) Regulations 2008 (the Regulations) commenced on 24 March 2008. The purpose of the Regulations is to implement Australia’s obligations under United Nations Security Council Resolution 1737 (2006) and subsequent related Resolutions 1747 (2007) and 1803 (2008), to impose sanctions in relation to Iran. These Resolutions were adopted under Article 41 of Chapter VII of the Charter of the United Nations, and the measures are binding on Australia pursuant to Article 25 of that Charter.
Sub-regulation 5(2) of the Regulations provides that the Minister for Foreign Affairs (the Minister) may determine, by legislative instrument, a list of goods that would be export sanctioned goods for the purposes of the Regulations, if the Minister is satisfied the specified goods would, if supplied to Iran, contribute to enrichment-related, reprocessing, heavy water-related activities, the development of nuclear weapon delivery systems, or to the pursuit of activities about which the International Atomic Energy Agency (“IAEA”) has expressed concern or identified as outstanding.
This instrument adds to the list made pursuant to sub-regulation 5(2) of the Regulations nickel and its alloys, in crude or semi-fabricated form, with either a nickel content of 25% or more by weight, or a nickel and cobalt content of 30% or more by weight. The Minister has determined that such items would, if supplied to Iran, contribute to enrichment-related, reprocessing or heavy water-related activities, the development of nuclear weapon delivery systems, or to the pursuit of activities about which the IAEA has expressed concerns or identified as outstanding.
This instrument also corrects a number of minor technical drafting errors on the list. The errors relate to the rendering in standard script numbers which should have been superscripted in schedule 1, part 1, division 2, item 9, subparagraph (a)(i), schedule 1, part 1, division 2, item 9, subparagraph (a)(ii), schedule 1, part 1, division 2, item 9, subparagraph (b)(i), schedule 1, part 1, division 2, item 9, subparagraph (b)(ii), schedule 1, part 3, items 1 and 2 of the list.
The relevant United Nations Security Council Resolutions can be found on the UN website (www.un.org). Australia has an obligation under Article 25 of the United Nations Charter to implement decisions of the Security Council. Relevant Commonwealth Government Departments were consulted prior to and during the drafting of this legislative instrument.
Overview
The Charter of the United Nations (Sanctions – Iran) Regulations 2008 were enacted to implement Australia's obligations under United Nations Security Council Resolutions 1737, 1747, and 1803, which aim to impose sanctions on Iran due to its activities related to nuclear weapon development and proliferation. The enactment of these Regulations by the Australian Parliament was necessitated by the need to comply with the binding decisions of the UN Security Council under Article 25 of the United Nations Charter. The 2009 Amendment Determination, issued by the Minister for Foreign Affairs, updates the list of export-sanctioned goods, specifically adding nickel and its alloys, to prevent their potential contribution to Iran's nuclear activities, thereby reinforcing Australia's commitment to international sanctions against Iran. This instrument also rectifies minor technical errors in the original list, ensuring clarity and precision in the implementation of the sanctions.
Scope and Application
The Charter of the United Nations (Sanctions – Iran) Regulations 2008, and subsequent amending instruments such as the 2009 List Amendment Determination, apply to all persons and entities within Australia, including corporations, associations, and individuals, as well as their agents and representatives. The Regulations are designed to enforce Australia’s compliance with United Nations Security Council Resolutions 1737, 1747, and 1803, which mandate sanctions against Iran concerning activities related to nuclear weapon development and related technologies. The application of these Regulations extends across the entire Commonwealth of Australia and is not limited by state or territory boundaries. However, the Regulations do not apply to any goods or services unless they are explicitly listed as export sanctioned goods, which the Minister for Foreign Affairs determines based on their potential contribution to prohibited activities in Iran. The Regulations provide a mechanism for the Minister to add to or modify the list of sanctioned goods through subordinate instruments, thereby extending or restricting the application of the sanctions as required.
Key Provisions
The Charter of the United Nations (Sanctions – Iran) Regulations 2008 (the Regulations) establish a framework for implementing the sanctions against Iran mandated by United Nations Security Council Resolutions 1737 (2006), 1747 (2007) and 1803 (2008). Under section 5(2) of the Regulations, the Minister for Foreign Affairs has the authority to determine which goods, if exported to Iran, would contribute to nuclear enrichment activities or the development of nuclear weapon delivery systems, or other activities of concern to the International Atomic Energy Agency (IAEA). This legislative instrument updates the list of such export sanctioned goods to include nickel and its alloys, in crude or semi-fabricated form, meeting specific content criteria, due to their potential contribution to prohibited activities in Iran.
Entities and individuals subject to the Regulations must comply with the restrictions on the export of listed goods to Iran. This involves conducting thorough due diligence to ensure that their activities do not involve the supply of any listed goods to Iran. The Regulations require that all exports of these goods are meticulously tracked and reported, with appropriate documentation to be maintained to demonstrate compliance. Any entity or individual exporting goods to Iran must verify the end-use and end-user of the goods to ensure they are not being supplied to Iran.
Failure to comply with the provisions of the Regulations can result in significant penalties. The Regulations provide for both civil and criminal penalties for breaches. Civil penalties may include fines up to 5,000 penalty units or more, depending on the severity and intent of the breach. Criminal penalties may include fines of up to 21,000 penalty units and/or imprisonment for up to five years for individuals, and fines of up to 105,000 penalty units for bodies corporate. These penalties underscore the seriousness with which Australia treats its obligations under the United Nations Security Council Resolutions.