Iran

Compliance/Financial Considerations

If you intend to do any of the following in Iran, please contact Risk Services at risk@berkeley.edu or 642-5141:

  • Hire a local to work for you as an employee
  • Purchase or lease office or research space
  • Purchase or lease an automobile
  • Establish a long-term (over 90 days) or ongoing project
  • Conduct a clinical trial 

U.S. GOVERNMENT COMPLIANCE CONSIDERATIONS 

Foreign activities may trigger many U.S. laws, including:

  • Import Controls
  • Export Controls
  • Tax Reporting
  • Foreign Bank Account Reporting
  • Country Embargoes and Targeted Sanctions
  • Foreign Corrupt Practices Act
  • Anti-Boycott Laws 

Import Controls. UC employees must adhere to U.S. import requirements, and may need to enlist the services of a customs broker, especially for shipments arriving by sea and subject to the Importer Security Filing 71730, also known as ISF 10+2. 

Export Controls. Export controls may apply to advanced software and technology, research data, and other sensitive assets. UC’s Export Compliance FAQ contains useful information and can be found here.  Go here for the University of California plan for compliance with federal export controls. If you plan on taking or sending potentially export-controlled materials to Iran, consult the campus Research Administration Compliance Office at 642-0120. 

Tax Reporting. The University and its employees may be taxed in foreign countries. The United States does not have a tax treaty with Iran. For more information about double taxation issues, contact the Controller’s Office at:

Foreign Bank Account Reporting. The U.S. Treasury Department requires U.S. citizens with a financial interest in or signatory authority over a financial account in a foreign country, where accounts exceed $10,000 at any point during a calendar year, to report such accounts on a Report of Foreign Bank and Financial Accounts (FinCen Report 114). Those needing to complete the form should contact the Controller’s Office at cashiers@berkeley.edu or 643-9803 for assistance. An IRS 1040 Schedule B form (Part III–Foreign Accounts and Trusts) must be filed by the signatory for any foreign bank account, regardless of the account balance. 

Country Embargoes and Targeted Sanctions. In general, collaborations between University personnel and scholars at foreign institutions or organizations do not require export licenses unless they involve export-controlled or -restricted research or involve scholars in sanctioned countries. Before engaging in an international collaboration, the University needs to determine whether export licenses are required and to verify that the foreign collaborator is not blocked or sanctioned. The Office of Foreign Assets Control (OFAC) is responsible for enforcing all U.S. embargoes and sanctions. Depending on each country’s embargo or sanction program, activities may be prohibited without specific authorization or license. UC’s International Collaborations webpage contains additional information on this topic.   

The Foreign Corrupt Practices Act (FCPA) is intended to stop bribery. It prohibits offering to pay, paying, promising to pay, or authorizing the payment of money or anything of value to a foreign official. The term “foreign official” generally includes any employee or contractor of a foreign government, and may include individuals employed by foreign universities. It is also unlawful to make a payment to a third party knowing that all or part of the payment will go to a foreign official. For more information, review the federal government’s Resource Guide to the U.S. Foreign Corrupt Practices Act. If you need further clarification, contact the UC Berkeley Office of Legal Affairs at 642-7122.  Transparency International’s 2018 survey of perceived public sector corruption rated Iran at 28 out of 100 (138th out of 180 countries reviewed, i.e.  corrupt).

Anti-Boycott Laws.  The U.S. Department of Commerce is responsible for oversight of laws prohibiting individuals and entities from participating in boycotts not approved or sanctioned by the U.S. government. The Export Administration Act requires that requests to participate in such boycotts or to conduct activities in any of the boycotting countries be formally reported to the Department of Commerce and/or IRS.

For other compliance-related issues, refer to UC’s International Compliance webpage.   

ADDITIONAL CONSIDERATIONS FOR DOING BUSINESS INTERNATIONALLY

Foreign Bank Accounts. Employees wishing to open a foreign bank account should contact the Controller’s Office at cashiers@berkeley.edu or 643-9803. Requests to open accounts must be made through the Office of the President’s Banking and Treasury Services Group by the Chancellor or the Chancellor’s designee. 

Real Estate Agreements. Only employees with delegated authority to sign contracts on behalf of The Regents may enter into agreements, leases, or other contracts.  Foreign affiliates or operations must submit to the Real Estate Services Office property management agreements, personal property leases, or contracts with a term longer than one year or in an amount greater than $25,000 per year. The campus then seeks approval from the University president or designee. For more information, consult the Guidelines for the Establishment and Operation of Foreign Affiliate Organizations and Foreign Operations

Articles

The US State Department's page on IRANmay be found HERE.

Personal Safety

IRANIAN AUTHORITIES ARE TIGHTENING RESTRICTIONS IN TEHRAN AND APPROXIMATELY 100 OTHER 'RED' CITIES STARTING NOVEMBER 21 TO CURB THE SPREAD OF CORONAVIRUS DISEASE (COVID-19).  ALL INTERCITY TRAVEL AND TRAFFIC WITHIN THE CITIES FROM 2100-0400, WILL BE BANNED.  TRAVELERS TO IRAN, BOTH CITIZENS AND FOREIGN NATIONALS, MUST SUBMIT A NEGATIVE COVID-19 TEST TAKEN WITHIN THE PREVIOUS 96 HOURS BEFORE BOARDING. AUTHORITIES WILL DENY ENTY TO FOREIGN NATIONALS ARRIVING WITHOUT A NEGATIVE COVID-19 TEST. IRANIAN AUTHORITIES COULD REIMPOSE, EXTEND, FURTHER EASE, OR OTHERWISE AMEND ANY RESTRICTIONS WITH LITTLE TO NO NOTICE DEPENDING ON DISEASE ACTIVITY OVER THE COMING WEEKS.

THE U.S. STATE DEPARTMENT ISSUED A DO NOT TRAVEL ADVISORY FOR IRAN EFFECTIVE JANUARY 10, 2018 DUE TO ARBITRARY ARREST AND DETENTION OF U.S. CITIZENS. TRAVELERS TO IRAN ARE URGED IN THE STRONGEST TERMS TO CONTACT RISK SERVICES AT LEAST TWO WEEKS PRIOR TO DEPARTURE TO MAXIMIZE PERSONAL SAFETY.

Legal/Political

Criminal Penalties: While you are traveling in Iran, you are subject to its laws even though you are a U.S. citizen. U.S. citizens in Iran who violate Iranian laws, even unknowingly, including laws unfamiliar to Westerners, may be expelled, arrested, imprisoned (long prison terms and solitary confinement are common), or subject to other punishments depending on the crime including execution, amputation, flogging, blinding, stoning, and fines.  

Carry a copy of your U.S. passport (biodata page and page with Iranian visa) and some other form of identification with you at all times so that, if questioned by local officials, proof of U.S. citizenship is readily available.

If you are arrested while in Iran, request that the police and prison officials notify the Foreign Interests Section at the Swiss Embassy in Tehran immediately to ensure that the United States is aware of your circumstances. Under Iranian law, detainees may also request legal representation, although the authorities often fail to allow timely access to an attorney according to the Department of State’s 2017 edition of the Country Reports on Human Rights Practices.

Some laws are also prosecutable in the U.S., regardless of local law. For examples, see our website on crimes against minors abroad and the Department of Justice website.

Iran-U.S. Claims Tribunal: The Iranian government reportedly has the names of all individuals who filed claims against Iran at the Iran-U.S. Claims Tribunal at The Hague pursuant to the 1981 Algerian Accords. In addition, the Iranian government reportedly has compiled a list of the claimants who were awarded compensation in the Iran Claims Program administered by the Foreign Claims Settlement Commission. The Iranian government has allegedly been targeting award-holders who travel to Iran. It has been reported that upon some claimants' entry into Iran, Iranian authorities have questioned them as to the status of payment of their respective awards with a view to recouping the award money. The Iranian government has also reportedly threatened to prevent U.S. claimants who visit Iran from departing the country until they make arrangements to repay their award either in part or its entirety.

Dual Nationality: Iran considers dual nationals to be solely Iranian citizens. Dual nationals sometimes have their U.S. passports confiscated and may be denied permission to leave Iran, or encounter other problems with Iranian authorities. Likewise, Iranian authorities may deny dual nationals access to the Foreign Interests Section in Tehran. Refer to the above section entitled "Entry/Exit Requirements" for additional information concerning dual nationality.

U.S. citizens who also possess Iranian citizenship are subject to laws that impose special obligations on citizens of Iran, such as military service or taxes. Iranian-citizen males aged 18-34 are required to perform military service, unless exempt. This requirement includes Iranian-Americans, even those born in the United States. Young men who have turned 17 years of age will not be allowed to leave Iran without completing their military service.

Codes of Behavior and Dress: Islamic law is strictly enforced in Iran. Alcohol is forbidden. Women must wear a headscarf and a long jacket that covers the arms and upper legs while in public. Men may be required to wear long pants and cannot go bare-chested or wear tank tops, especially near religious sites or in conservative areas. There may be additional dress requirements at certain religious sites. Consult a guide book on Iran to determine how to dress and behave properly and respectfully. During the holy month of Ramadan, you should generally observe the Muslim tradition of not eating, drinking, or smoking in public from sunrise to sunset each day, though there are exemptions for foreign travelers who eat in hotel restaurants. In general, it is best to ask before taking photographs of people. Hobbies like photography and those involving the use of binoculars (e.g., bird-watching) can be misunderstood and may cause trouble with security officials.

Communication: Pre-paid overseas calling cards are available at most newsagents. The Internet is widely used in Iran. There are Internet cafes in most hotels; however, usage may be monitored. The Iranian government blocks access to social media such as Facebook, Twitter, and YouTube.

Sanctions: U.S. government economic sanctions prohibit most economic activity between U.S. citizens and Iran. In general, unless licensed by the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC), goods, technology, or services may not be exported, re-exported, sold or supplied, directly or indirectly, from the United States or by a U.S. citizen, wherever he or she is located, to Iran or the Government of Iran. With limited exceptions, goods or services of Iranian origin may not be imported into the United States, either directly or through third countries.

On May 8, 2018, the President announced his decision to cease the United States’ participation in the Joint Comprehensive Plan of Action (JCPOA), and to begin re-imposing the U.S. nuclear-related sanctions that were lifted to effectuate the JCPOA sanctions relief, following a wind-down period. OFAC has posted to its website additional frequently asked questions (FAQs) that provide guidance on the sanctions that are to be re-imposed and the relevant wind-down periods.