Iran automotive and rail: OFAC E.O. 13902 sector determination
OFAC published its determination that E.O. 13902 section 1(a)(i) covers Iranian automotive and rail. Effective Oct 1, 2026. Screening refresh and export-file note for drawback filers.
OFAC published an Iran-related sector determination under 31 CFR Part 560 (91 FR 64758; FR Doc. 2026-20839). The Federal Register notice was published October 13, 2026 (filed October 9, 2026). The determination itself was issued October 1, 2026, and took effect that day. OFAC had already posted it on ofac.treasury.gov; the FR publication puts it in the official record.
Effective October 1, 2026, OFAC determined that E.O. 13902 section 1(a)(i) applies to the automotive and rail sectors of the Iranian economy. The determination exposes operators in those sectors to designation; it does not itself list any named persons.
What OFAC determined
On October 1, 2026, the Director of OFAC (Bradley T. Smith), in consultation with the Department of State and pursuant to 31 CFR 560.802, determined that section 1(a)(i) of Executive Order 13902 of January 10, 2020 ("Imposing Sanctions With Respect to Additional Sectors of Iran", 85 FR 2003, January 14, 2020) applies to the automotive and rail sectors of the Iranian economy. Any person determined to operate in these sectors is subject to sanctions under section 1(a)(i).
Determination issued and effective: October 1, 2026 · Director Bradley T. Smith · consultation with State · 31 CFR 560.802
E.O. 13902 (Jan 10, 2020; 85 FR 2003) · IEEPA (50 U.S.C. 1701 et seq.) · sectors added: automotive and rail (Iran)
Contact: OFAC Assistant Director for Regulatory Affairs, 202-622-4855 · ofac.treasury.gov/contact-ofac
What section 1(a)(i) already covered
E.O. 13902 invokes, inter alia, the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.). Section 1(a)(i) blocks, with certain exceptions, all property and interests in property that are in the United States, that come within the United States, or that are or come within the possession or control of any U.S. person, of any person determined by Treasury, in consultation with State, to operate in the construction, mining, manufacturing, or textiles sectors of the Iranian economy, or any other sector Treasury determines. This FR notice adds automotive and rail to that sector list.
The determination makes persons operating in the Iranian automotive and rail sectors exposed to designation under section 1(a)(i). It does not itself designate or list any named persons or companies. Watch OFAC Recent Actions for any follow-on designations.
Drawback rests on documented exports, so export documentation and consignee screening belong in the same file. A sanctions problem on an export is a separate legal risk from the drawback claim. Keep restricted-party hits and export clearances with the export package that supports any later claim (see how to file a duty drawback claim).
Action items
- Refresh restricted-party screening for Iranian automotive and rail sector counterparties, and for non-Iranian suppliers or buyers with links to those sectors.
- Review automotive parts and rail equipment supply chains for Iran exposure before booking exports or sourcing.
- Watch OFAC Recent Actions on ofac.treasury.gov for any designations that follow this sector determination.
- Keep export docs and screening together if you may claim drawback on the same shipments.
- FR Doc. 2026-20839 (91 FR 64758): OFAC published its Iran-related determination under 31 CFR Part 560. Issued and effective October 1, 2026; FR published October 13, 2026 (filed October 9).
- Director Bradley T. Smith, in consultation with State and pursuant to 31 CFR 560.802, determined that E.O. 13902 section 1(a)(i) applies to the automotive and rail sectors of the Iranian economy.
- Section 1(a)(i) blocks, with certain exceptions, U.S. property and interests in property of persons determined to operate in covered Iranian sectors (construction, mining, manufacturing, textiles, plus other sectors Treasury determines). E.O. 13902 invokes IEEPA.
- The determination exposes operators in those sectors to designation; it does not itself list any named persons. Contact: OFAC Assistant Director for Regulatory Affairs, 202-622-4855.
- Refresh screening and Iran-exposure reviews for automotive and rail supply chains; keep export documentation and consignee screening with any drawback file.
- Publication of an Iran-Related Determination (91 FR 64758; FR Doc. 2026-20839) · Office of Foreign Assets Control, Department of the Treasury
- Office of Foreign Assets Control · U.S. Department of the Treasury
- Contact OFAC · Office of Foreign Assets Control, Department of the Treasury
This article is for general information and is not legal or tax advice. Drawback eligibility depends on your specific facts, and final refunds are determined by CBP at liquidation. Consult a licensed customs broker or attorney for your situation.