EXPLANATORY STATEMENT

 

Select Legislative Instrument 2007 No. 12

 

Issued by the Authority of the Minister for Trade

 

Charter of the United Nations Act 1945

 

Charter of the United Nations (Sanctions – Iran) Regulations 2007

 

The purpose of the Regulations is to implement Australia’s obligations under United Nations Security Council Resolution (UNSCR) 1737, adopted on 23 December 2006, to impose a range of sanctions against Iran. UNSCR 1737 was 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.

 

Under UNSCR 1737, Australia must take necessary measures to prevent the direct or indirect supply, sale or transfer to, for the use in, or for the benefit of, Iran of all items, materials, equipment, goods and technology which could contribute to Iran’s enrichment-related, reprocessing or heavy water-related activities, or to the development of nuclear weapons delivery systems. The resolution requires Australia to prevent any transfers to Iran of technical advice or training, financial assistance or resources, investment, brokering or other services related to specified items. The resolution also requires Australia to prohibit the procurement of specified items from Iran. The prohibitions apply extraterritorially, including to Australian nationals abroad, and to the use of Australian vessels and aircraft.

 

UNSCR 1737 further requires Australia to freeze the funds, other financial assets and economic resources that are owned or controlled by persons or entities designated by the Security Council as providing support for Iran’s proliferation sensitive nuclear activities or the development of nuclear weapon delivery systems. The Resolution also requires Australia to prevent the transfer of any funds, financial assets or economic resources to or for the benefit of such designated persons or entities.

 

Australia generally implements territorial aspects of trade sanctions via specific regulations under the Customs (Prohibited Imports) Regulations 1956 and the Customs (Prohibited Exports) Regulations 1958, which are administered by the Australian Customs Service. Travel restrictions are implemented under the Migration Act and associated regulations, administered by the Department of Immigration and Citizenship.

 

The Regulations ensure that those aspects of the sanctions imposed by UNSCR 1737 which cannot be implemented under existing legislation are adequately implemented into domestic law. The Regulations include extraterritorial aspects of the sanctions and would provide scope for the Minister for Foreign Affairs to authorise exceptions to the application of financial sanctions in accordance with UNSCR 1737.

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 carry out decisions of the Security Council. All relevant Commonwealth Government Departments were consulted prior to the drafting of these Regulations.