Banned cargo on way to Iran held in UAE

The United Arab Emirates has impounded the cargo of a vessel bound for Iran after discovering that "hazardous materials" aboard contravened UN sanctions placed on the Islamic republic to curtail its nuclear development programme.

In a further ratcheting up of the UAE's determination to curb misuse of its ports, an official there confirmed that the cargo, detained for testing last month, contained materials banned by UN Security Council resolutions 1737 and 1747, while the purchaser of the materials had also been barred by the same resolutions.

But he declined to identify the contents of the cargo or the Iranian company that had ordered the materials.

The UAE's move comes amid a broader tightening of control over Iranian business interests that have for decades existed in the emirates, mainly Dubai.

"The UAE wants to be seen to take action as they haven't been so proactive in the past on, for example, dual-use materials," says Neil Patrick, analyst for the International Crisis Group, a non-governmental organisation.

The US has criticised the UAE for lax controls over the transshipment of sensitive materials, such as nuclear technologies and explosive devices. This prompted the UAE to close down about 40 companies for transshipment offences and to introduce an export control law in September.

Nasser Hashempour, vice-president of the Dubai-based Iran Business Council, says an unofficial ban appears to have been imposed on the issuance of visas to newly formed, Iran-linked companies based in the emirates.

"The authorities give a licence but when it comes to new visas they have difficulties," says Mr Hashempour.

But he and Iran-based businessmen confirm that existing Iranian companies - most of which are involved in re-exporting goods from Europe, China and even the US - are not facing any specific problems in transferring goods to their home market, at least for now.

Iran's merchants are also finding it increasingly difficult to raise bank financing for trade purposes as UAE-based regional and international banks halt their dealings with entities from the Islamic republic, or even with companies that are known to deal with it.

But the souqs in Iran remain well stocked. "The sanctions are biting - but it really does still seem like business as usual over there," says a Dubai-based financier

The measures imposed by resolutions 1737 (2006) and 1747 (2007) are unofficially summarized in the table below.

Measure	Description (unofficial)	Exceptions to the measures
Nuclear and ballistic missile programmes-related embargo	1. Decides that all States shall prevent the direct or indirect supply, sale or transfer to Iran of the following items, materials, equipment, goods and technology as well as related assistance, training and services: (a) those set out in sections A.1 and B.1 through B.7 of INFCIRC/254/Rev.8/Part 1 in document S/2006/814, with the exception of equipment covered by B.1 and low-enriched uranium covered by A.1.2, provided that these items have met certain criteria as specified. (b) those set out in document S/2006/815, with the exception of items covered by 19.A.3 of Category II. (c) any additional items etc, determined as necessary by the Security Council or the Committee, which could contribute to enrichment-related, reprocessing or heavy-water-related activities, or to the development of nuclear weapon delivery systems. (d) those set out in INFCIRC/254/Rev.7/Part 2 of document S/2006/814 if the State determines that they would contribute to enrichment-related, reprocessing or heavy-water-related activities. (e) any other items not listed in documents S/2006/814 or S/2006/815 if the State determines that they would contribute to enrichment-related, reprocessing or heavy-water-related activities, or to the development of nuclear weapon delivery systems. (f) any further items if the State determines that they would contribute to the pursuit of activities related to other topics about which the IAEA has expressed concerns or identified as outstanding. 2. Decides that Iran shall not export any items in documentsS/2006/814 and S/2006/815, and all Member States shall prohibit the procurement of such items from Iran. 2. Decides that Iran shall not export any items in documents S/2006/814 [add link] and S/2006/815, and all Member States shall prohibit the procurement of such items from Iran.	Set out in paragraph 9 of resolution 1737 (2006).
Ban on exports of arms from Iran	Decides that Iran shall not supply, sell or transfer directly or indirectly from its territory or by its nationals or using its flag vessels or aircraft any arms or related materiel, and that all States shall prohibit the procurement of such items from Iran by their nationals, or using their flag vessels or aircraft, and whether or not originating in the territory of Iran.
Travel notification requirements	Calls upon all States to exercise vigilance regarding the entry into or transit through their territories of individuals who are engaged in, directly associated with or providing support for Iran’s proliferation sensitive nuclear activities or for the development of nuclear weapon delivery systems, and decides in this regard that all States shall notify the Committee of the entry into or transit through their territories of the persons designated in the Annex to resolution 1737, as well as of any additional persons designated by the Security Council or the Committee, except where such travel is for activities directly related to the items in subparagraphs 3 (b) (i) and (ii) of the resolution. Subsequently applied also to individuals and entities designated in Annex I to resolution 1747, as follows: “Calls upon all States to exercise vigilance and restraint […]”.
Assets freeze	Decides that all States shall freeze the funds, other financial assets and economic resources that are owned or controlled by the individuals and entities designated in the Annex to resolution 1737, as well as those of additional persons or entities designated by the Security Council or by the Committee as being engaged in, directly associated with or providing support for Iran’s proliferation sensitive nuclear activities or the development of nuclear weapon delivery systems, or by persons or entities acting on their behalf or at their direction, or by entities owned or controlled by them. Subsequently applied also to individuals and entities designated in Annex I to resolution 1747.	Set out in paragraphs 13 and 15 of resolution 1737 (2006).

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