Explanatory Statement
Issued by the Authority of the Minister for Foreign Affairs
Charter of the United Nations Act 1945
Charter of the United Nations (Sanctions – Iran) (Export Sanctioned Goods) List
Determination 2008
The Charter of the United Nations (Sanctions – Iran) Regulations 2008 (the Regulations) entered into force 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.
Operative Paragraphs (OP) 4(b) and OP 4(c) of Resolution 1737 oblige Australia to take the necessary measures to prevent the supply, sale or transfer directly or indirectly from Australian territory, or by Australian nationals or using Australian flag vessels or aircraft to, or for the use in or benefit of, Iran, and whether or not originating in Australian territory, of items, materials, equipment, goods and technology not listed in documents S/2006/814 or S/2006/815 if Australia determines that these items, materials, equipment, goods and technology would contribute to enrichment-related, reprocessing or heavy water-related activities, or to the development of nuclear weapon delivery systems. Australia is also obliged under OP 4(b) and OP 4(c) of Resolution 1737 to restrict similarly any further items if Australia determines that those items would contribute to the pursuit of activities related to other topics about which the International Atomic Energy Agency (IAEA) has expressed concerns or identified as outstanding.
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, or heavy water-related activities, or the development of nuclear weapon delivery systems, or, if supplied to Iran, would contribute to the pursuit of activities about which the IAEA has expressed concern or identified as outstanding.
By this instrument, the Minister has determined a list of specified goods as being export sanctioned goods for the purposes of the Regulations, meaning these goods will be subject to export restrictions under the terms of the Regulations.
Once this legislative instrument comes into effect, the Regulations make it an offence if, inter alia, a person supplies, sells or transfers export sanctioned goods to another person and, as a direct or indirect result of the supply, sale or transfer the goods are transferred to Iran, or are incorporated into goods that are transferred to Iran, and that supply is not otherwise authorised or permissible pursuant to the Regulations.
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 was enacted to ensure that Australia fulfils its international obligations under United Nations Security Council Resolutions 1737, 1747, and 1803, which collectively impose sanctions on Iran in response to its nuclear activities. These Regulations were introduced by the Australian Government, acting through the Minister for Foreign Affairs, to address the gap in domestic legislation necessary to implement the binding resolutions adopted under Chapter VII of the Charter of the United Nations. The primary policy objective of these Regulations is to prevent the export of goods and technology that could contribute to Iran’s nuclear programme and the development of nuclear weapon delivery systems, thereby upholding Australia's commitment to global non-proliferation efforts and aligning with the International Atomic Energy Agency's concerns.
Scope and Application
The Charter of the United Nations (Sanctions – Iran) Regulations 2008 applies to all Australian persons, entities, and vessels or aircraft registered in Australia. It encompasses a wide range of conduct and transactions that involve the export of specified goods to Iran, ensuring compliance with United Nations Security Council resolutions aimed at preventing the proliferation of nuclear-related technologies. The Regulations extend to all territories of Australia, as well as to Australian nationals and entities wherever they are located. The Act mandates strict adherence to the outlined export restrictions, with specific penalties for non-compliance. Notably, the Regulations are not limited to the primary list of sanctioned goods but also extend to any additional items deemed by the Minister for Foreign Affairs to contribute to prohibited activities in Iran, thereby enforcing a broad scope of control over potential exports. Exclusions or exemptions from these restrictions are not broadly provided for within the primary text, though certain authorisations may be granted under specific circumstances, reflecting a stringent approach to compliance.
Key Provisions
The main operative sections of the Charter of the United Nations (Sanctions – Iran) Regulations 2008 (the Regulations) are sections 4(b) and 4(c) of Resolution 1737, which impose a duty on Australia to prevent the supply, sale, or transfer of specified goods from Australian territory or by Australian nationals to Iran. These provisions are further elaborated in sub-regulation 5(2), which allows the Minister for Foreign Affairs to determine a list of goods that would be subject to export sanctions if supplied to Iran. This list is intended to restrict the export of items that could contribute to Iran's enrichment-related, reprocessing, or heavy water-related activities, or to the development of nuclear weapon delivery systems, or to activities that the International Atomic Energy Agency (IAEA) has identified as concerning.
The Regulations impose several obligations on parties and entities within Australia. Firstly, they require all Australian persons and entities to refrain from supplying, selling, or transferring the specified export sanctioned goods to any other person. This prohibition extends to any situation where the goods could be indirectly transferred to Iran, whether originating in Australia or not. Secondly, any person or entity found to be in violation of these export restrictions must adhere to any exemptions or authorisations provided for under the Regulations. These obligations are designed to ensure compliance with the United Nations Security Council resolutions and Australia's international obligations under the United Nations Charter.
Violations of the Regulations can result in significant civil and criminal consequences. Under section 10(1), it is an offence for a person to supply, sell, or transfer export sanctioned goods to another person if the goods are subsequently transferred to Iran or incorporated into goods transferred to Iran, and this transfer is not otherwise authorised or permissible under the Regulations. The maximum penalties for these offences are detailed in section 13, which provides for a penalty of up to 5,000 penalty units for individuals and 25,000 penalty units for bodies corporate. These penalties reflect the seriousness of breaching Australia’s international obligations and the intent to deter non-compliance with the United Nations sanctions on Iran. Additionally, section 10(2) stipulates that any person found guilty of an offence under the Regulations can also be subject to prosecution under relevant Australian criminal laws, further enhancing the deterrent effect of the sanctions.