Publication of Guidance Relating to the Provision of Certain Temporary Sanctions Relief, as Extended
Notice published August 4, 2014 · 79 FR 45233
- Document number
- FR Doc. 2014-18315
- Type
- Notice
- Published
- August 4, 2014
- Citation
- 79 FR 45233 (pages 45,233–45,237)
- Action
- Notice, publication of guidance.
- Effective
- July 21, 2014
- Dates
- Effective Date: July 21, 2014.
- Official sources
- PDF (govinfo.gov) · federalregister.gov
Summary
The Federal Register's summaryThe Department of the Treasury's Office of Foreign Assets Control (OFAC) is publishing Guidance Relating to the Provision of Certain Temporary Sanctions Relief in Order to Implement the Joint Plan Of Action (JPOA) Reached on November 24, 2013, between the P5 + 1 and the Islamic Republic of Iran, as Extended Through November 24, 2014 (Guidance).
Executive orders cited
- Executive Order 13382 · Other documents citing it
- Executive Order 13599 · Other documents citing it
- Executive Order 13622 · Other documents citing it
- Executive Order 13645 · Other documents citing it
Text
As the Government Publishing Office publishes it. Pages OFAC printed as images (in recent notices, the lists of names) are in the official PDF.
[Federal Register Volume 79, Number 149 (Monday, August 4, 2014)]
[Notices]
[Pages 45233-45237]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-18315]
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DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
Publication of Guidance Relating to the Provision of Certain
Temporary Sanctions Relief, as Extended
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Notice, publication of guidance.
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SUMMARY: The Department of the Treasury's Office of Foreign Assets
Control (OFAC) is publishing Guidance Relating to the Provision of
Certain Temporary Sanctions Relief in Order to Implement the Joint Plan
Of Action (JPOA) Reached on November 24, 2013, between the P5 + 1 and
the Islamic Republic of Iran, as Extended Through November 24, 2014
(Guidance).
DATES: Effective Date: July 21, 2014.
FOR FURTHER INFORMATION CONTACT: Assistant Director for Licensing,
tel.: 202-622-2480, Assistant Director for Policy, tel.: 202-622-2402,
Assistant Director for Regulatory Affairs, tel.: 202-622-4855,
Assistant Director for Sanctions Compliance & Evaluation, tel.: 202-
622-2490, Office of Foreign Assets Control, or Chief Counsel (Foreign
Assets Control), tel.: 202-622-2410, Office of the General Counsel,
Department of the Treasury (not toll free numbers).
SUPPLEMENTARY INFORMATION:
Electronic and Facsimile Availability
This document and additional information concerning OFAC are
available from OFAC's Web site (www.treasury.gov/ofac). Certain general
information pertaining to OFAC's sanctions programs also is available
via facsimile through a 24-hour fax-on-demand service, tel.: 202-622-
0077.
Background
On November 24, 2013, the United States and its partners in the P5
+ 1 (China, France, Germany, Russia, the United Kingdom, and the United
States, coordinated by the European Union's High Representative)
reached an initial understanding with Iran, outlined in the JPOA, that
halts progress on Iran's nuclear program and rolls it back in key
respects. In return for Iran's commitment to place meaningful limits on
its nuclear program, the P5 + 1 committed to provide Iran with limited,
targeted, and reversible sanctions relief for a six-month period,
renewable by mutual consent. In furtherance of the United States
Government's (USG's) commitments under the JPOA, the U.S. Department of
State and the U.S. Department of the Treasury implemented sanctions
relief relating to certain activities and associated services taking
place exclusively during the six-month period beginning on January 20,
2014, and ending July 20, 2014 (the JPOA Period).
The JPOA was renewed by mutual consent of the P5 + 1 and Iran on
July 19, 2014, extending the temporary sanctions relief provided under
the JPOA to cover the period beginning on July 21, 2014, and ending
November 24, 2014 (the Extended JPOA Period), in order to continue to
negotiate a long-term comprehensive solution to ensure that Iran's
nuclear program will be exclusively peaceful. During the Extended JPOA
Period, the sanctions relief the USG committed to during the JPOA will
be continued, as set out in the Guidance. The USG retains the authority
to revoke this limited sanctions relief at any time if Iran fails to
meet its commitments under the JPOA.
The Department of State and the Department of the Treasury jointly
issued the updated Guidance on July 21, 2014. At the time of its
issuance on July 21, 2014, OFAC made the Guidance available on the OFAC
Web site: www.treasury.gov/ofac and the Department of State made the
Guidance available on its Web site: www.state.gov. With this notice,
OFAC is publishing the Guidance in the Federal Register.
Guidance
U.S. Department of the Treasury
U.S. Department of State
Guidance Relating to the Provision of Certain Temporary Sanctions
Relief in Order To Implement the Joint Plan of Action Reached on
November 24, 2013, Between the P5 + 1 and the Islamic Republic of Iran,
as Extended Through November 24, 2014
On November 24, 2013, the United States and its partners in the P5
+ 1 (China, France, Germany, Russia, the United Kingdom, and the United
States, coordinated by the European Union's High Representative)
reached an initial understanding with Iran, outlined in a Joint Plan of
Action (JPOA), that halts progress on Iran's nuclear program and rolls
it back in key respects. In return for Iran's commitment to place
meaningful limits on its nuclear program, the P5 + 1 committed to
provide Iran with limited, targeted, and reversible sanctions relief
for a six-month period, renewable by mutual consent. In furtherance of
the U.S. Government's (USG) commitments under the JPOA, the U.S.
Department of State and the U.S. Department of the Treasury implemented
sanctions relief relating to certain activities and associated services
taking place exclusively during the six-month period beginning on
January 20, 2014, and ending July 20, 2014 (the JPOA Period).
The JPOA was renewed by mutual consent of the P5 + 1 and Iran on
July 19, 2014, extending the temporary sanctions relief provided under
the JPOA to cover the period beginning on July 21, 2014, and ending
November 24, 2014 (the Extended JPOA Period), in order to continue to
negotiate a long-term comprehensive solution to ensure that Iran's
nuclear program will be exclusively peaceful. During the Extended JPOA
Period, the sanctions relief the USG committed to during the JPOA will
be continued, as set out below. The USG retains the authority to revoke
this limited sanctions relief at any time if Iran fails to meet its
commitments under the JPOA.
For purposes of the JPOA sanctions relief, the USG interprets the
term ``associated service'' to mean any necessary service--including
any insurance, transportation, or financial service--ordinarily
incident to the underlying activity covered by the JPOA, provided,
however, that unless otherwise noted, such services may not involve
persons identified on the Department of the Treasury's Office of
Foreign Assets Control's (OFAC) List of
[[Page 45234]]
Specially Designated Nationals and Blocked Persons (SDN List).\1\
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\1\ Insurance payments for claims arising from incidents that
occur during the JPOA Period and/or the Extended JPOA Period may be
paid after November 24, 2014, so long as the underlying transactions
and activities conform to all others aspects of the sanctions
remaining in place and the terms of the sanctions relief provided by
the JPOA. Insurance and reinsurance companies should contact the USG
directly with any inquiries. U.S. persons and U.S.-owned or -
controlled foreign entities remain prohibited from participating in
the provision of insurance or reinsurance services to or for the
benefit of Iran or sanctioned entities, including with respect to
all elements of the sanctions relief provided pursuant to the JPOA,
unless specifically authorized by OFAC.
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The USG retains the authority to continue imposing sanctions under
the authorities identified below during the Extended JPOA Period for
activities that occurred prior to January 20, 2014. Moreover, the USG
retains the authority to impose sanctions under the authorities
outlined below for activities occurring during the JPOA Period and/or
the Extended JPOA Period to the extent such activities are materially
inconsistent with sanctions relief described in the JPOA and outlined
in this guidance. The USG also retains the authority to continue
imposing sanctions during the Extended JPOA Period for activities
occurring before and during the JPOA Period and the Extended JPOA
Period under other authorities, such as those used to combat terrorism
and the proliferation of weapons of mass destruction. During the
Extended JPOA Period, the USG will continue to vigorously enforce our
sanctions against Iran, including by taking action against those who
seek to evade or circumvent our sanctions.
Please note that, with the exception of civil aviation activities
described in section IV and the humanitarian channel described in
section VI below, none of the sanctions relief outlined in this
guidance may involve a U.S. person, or, as applicable, a foreign entity
owned or controlled by a U.S. person,\2\ if otherwise prohibited under
any sanctions program administered by the USG.
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\2\ Consistent with section 218 of the Iran Threat Reduction and
Syria Human Rights Act of 2012 and with section 560.215 of the
Iranian Transactions and Sanctions Regulations, 31 CFR part 560
(ITSR), foreign entities that are owned or controlled by U.S.
persons (``U.S.-owned or -controlled foreign entities'') are subject
to the ITSR.
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I. Sanctions Related to Iran's Export of Petrochemical Products
The JPOA provides for the temporary suspension of U.S. sanctions on
``Iran's petrochemical exports, as well as sanctions on any associated
services.'' To implement this provision of the JPOA during the Extended
JPOA Period, the USG will continue to take the following steps to allow
for the export of petrochemical products from Iran, as well as
associated services, by non-U.S. persons not otherwise subject to
section 560.215 of the Iranian Transactions and Sanctions Regulations,
31 CFR part 560 (ITSR), (hereinafter ``non-U.S. persons not otherwise
subject to the ITSR''):
1. Correspondent or Payable-Through Account Sanctions: The USG will
not impose correspondent or payable-through account sanctions under
section 1(a)(iii) of Executive Order (E.O.) 13622 (as amended by
section 16(b) of E.O. 13645); section 3(a)(i) of E.O. 13645; and
sections 561.204(a) and 561.204(b)(3) of the Iranian Financial
Sanctions Regulations, 31 CFR part 561 (IFSR), on foreign financial
institutions that conduct or facilitate transactions that are initiated
and completed entirely within the JPOA Period and/or the Extended JPOA
Period by non-U.S. persons not otherwise subject to the ITSR for
exports of petrochemical products \3\ from Iran that are initiated and
completed entirely within the JPOA Period and/or the Extended JPOA
Period, including transactions involving the petrochemical companies
listed in the Annex to this guidance, provided that the transactions do
not involve persons on the SDN List other than the petrochemical
companies listed in the Annex to this guidance or any Iranian
depository institutions \4\ listed solely pursuant to E.O. 13599.
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\3\ For purposes of this guidance, the USG is interpreting the
term ``petrochemicals,'' as used in the JPOA, as having the meaning
given to the term ``petrochemical products'' in, inter alia, section
10(m) of E.O. 13622; therefore, the term includes any aromatic,
olefin, and synthesis gas, and any of their derivatives, including
ethylene, propylene, butadiene, benzene, toluene, xylene, ammonia,
methanol, and urea. For further information on what products are
considered to fall within this definition of ``petrochemical
products'' see the November 13, 2012 State Department Sanctions
Information and Guidance, 77 Fed. Reg. 67726-67731.
\4\ For purposes of this guidance, as defined in section 14(g)
of E.O. 13645, the term ``Iranian depository institution'' means any
entity (including foreign branches), wherever located, organized
under the laws of Iran or any jurisdiction within Iran, or owned or
controlled by the Government of Iran, or in Iran, or owned or
controlled by any of the foregoing, that is engaged primarily in the
business of banking (for example, banks, savings banks, savings
associations, credit unions, trust companies, and bank holding
companies).
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2. Blocking Sanctions: The USG will not impose blocking sanctions
under section 2(a)(i)-(ii) of E.O. 13645 with respect to persons that,
exclusively during the JPOA Period and/or the Extended JPOA Period,
materially assist, sponsor, or provide financial, material, or
technological support for, or goods or services to or in support of,
the petrochemical companies listed in the Annex to this guidance for
exports of petrochemical products from Iran that are initiated and
completed entirely within the JPOA Period and/or the Extended JPOA
Period, provided that the activities do not involve persons on the SDN
List other than the petrochemical companies listed in the Annex to this
guidance or any Iranian depository institutions listed solely pursuant
to E.O. 13599.
3. Menu-based Sanctions: \5\ The USG will not impose sanctions
under section 2(a)(ii) of E.O. 13622 (as amended by section 16(d) of
E.O. 13645) on non-U.S. persons not otherwise subject to the ITSR who
engage in transactions exclusively during the JPOA Period and/or the
Extended JPOA Period for exports of petrochemical products from Iran
that are initiated and completed entirely within the JPOA Period and/or
the Extended JPOA Period, including transactions involving the
petrochemical companies listed in the Annex to this guidance, provided
that the activities do not involve persons on the SDN List other than
the petrochemical companies listed in the Annex to this guidance or any
Iranian depository institutions listed solely pursuant to E.O. 13599.
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\5\ E.O. 13622 and 13645, among others, describe menus of
sanctions that the USG may impose in response to certain conduct
specified within other sections of the relevant E.O. For the
purposes of this guidance, such sanctions are termed ``Menu-based
Sanctions.''
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In addition, please see section VII below, which describes the
exercise of certain waiver authorities relevant to the activities and
transactions described in this section.
II. Sanctions Related to Iran's Auto Industry
The JPOA provides for the temporary suspension of U.S. sanctions on
``Iran's auto industry, as well as sanctions on associated services.''
To implement this provision during the Extended JPOA Period, the USG
will continue to take the following steps to allow for the sale,
supply, or transfer to Iran of significant goods or services used in
connection with the automotive sector of Iran, as well as the provision
of associated services by non-U.S. persons not otherwise subject to the
ITSR:
1. Correspondent or Payable-through Account Sanctions: The USG will
not impose correspondent or payable-through account sanctions under
section 3(a)(ii) of E.O. 13645 with respect to foreign financial
institutions that, exclusively during the JPOA Period and/or the
Extended JPOA Period, knowingly conduct or facilitate
[[Page 45235]]
financial transactions for the sale, supply, or transfer to Iran of
significant goods or services used in connection with the automotive
sector of Iran that are initiated and completed entirely within the
JPOA Period and/or the Extended JPOA Period, provided that the
transactions do not involve persons on the SDN List other than any
Iranian depository institutions listed solely pursuant to E.O. 13599.
2. Menu-based Sanctions: The USG will not impose sanctions
described in sections 6 and 7 of E.O. 13645 with respect to persons
that, as described in section 5(a) of E.O. 13645, knowingly engage in
transactions for the sale, supply, or transfer to Iran of significant
goods or services used in connection with the automotive sector of Iran
that are initiated and completed entirely within the JPOA Period and/or
the Extended JPOA Period, provided that the transactions do not involve
persons on the SDN List other than any Iranian depository institutions
listed solely pursuant to E.O. 13599.
In addition, please see section VII below, which describes the
exercise of certain waiver authorities relevant to the activities and
transactions described in this section.
III. Sanctions Related to Gold and Other Precious Metals
The JPOA provides for the temporary suspension of U.S. sanctions on
``gold and precious metals, as well as sanctions on associated
services.'' To implement this provision of the JPOA during the Extended
JPOA Period, the USG will continue to take the following steps to allow
for the sale of gold and other precious metals to or from Iran, as well
as the provision of associated services, by non-U.S. persons not
otherwise subject to the ITSR:
1. Correspondent or Payable-through Account Sanctions: The USG will
not impose correspondent or payable-through account sanctions under
section 3(a)(i) of E.O. 13645 with respect to foreign financial
institutions that, exclusively during the JPOA Period and/or the
Extended JPOA Period, conduct or facilitate transactions by non-U.S.
persons not otherwise subject to the ITSR for the purchase or
acquisition of precious metals to or from Iran that are initiated and
completed entirely within the JPOA Period and/or the Extended JPOA
Period, provided that the funds for these purchases of gold and other
precious metals may not be drawn from Restricted Funds, and further
provided that the transactions do not involve persons on the SDN List
other than any political subdivision, agency, or instrumentality of the
Government of Iran listed solely pursuant to E.O. 13599 or any Iranian
depository institutions listed solely pursuant to E.O. 13599.
2. Blocking Sanctions: The USG will not impose blocking sanctions
under section 5(a) of E.O. 13622; sections 2(a)(i)-(ii) of E.O. 13645;
and section 560.211(c)(2) of the ITSR, with respect to persons that,
exclusively during the JPOA Period and/or the Extended JPOA Period,
materially assist, sponsor, or provide financial, material, or
technological support for, or goods or services in support of, the
purchase or acquisition of precious metals to or from Iran or by the
Government of Iran if such activities are initiated and completed
entirely within the JPOA Period and/or the Extended JPOA Period,
provided that the funds for these purchases of gold and other precious
metals are not drawn from Restricted Funds,\6\ and further provided
that the transactions do not involve persons on the SDN List other than
any political subdivision, agency, or instrumentality of the Government
of Iran listed solely pursuant to E.O. 13599 or any Iranian depository
institutions listed solely pursuant to E.O. 13599.
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\6\ For the purposes of this guidance, the term ``Restricted
Funds'' refers to: (i) Any existing and future revenues from the
sale of Iranian petroleum or petroleum products, wherever they may
be held, and (ii) any Central Bank of Iran (CBI) funds, with certain
exceptions for non-petroleum CBI funds held at a foreign country's
central bank.
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In addition, please see section VII below, which describes the
exercise of certain waiver authorities relevant to the activities and
transactions described in this section.
IV. Sanctions Related to Civil Aviation
The JPOA provides for the temporary licensing of ``the supply and
installation in Iran of spare parts for safety of flight for Iranian
civil aviation and associated services. License safety related
inspections and repairs in Iran as well as associated services.'' To
implement this provision during the Extended JPOA Period, the USG will
continue to take the following steps:
1. Statement of Licensing Policy: OFAC is issuing an Amended
Statement of Licensing Policy on Activities Related to the Safety of
Iran's Civil Aviation Industry (Amended SLP) to extend the date of the
previously-issued policy to the end of the Extended JPOA Period. The
Amended SLP will establish, during the JPOA Period and the Extended
JPOA Period, a favorable licensing policy regime under which U.S.
persons, U.S.-owned or -controlled foreign entities, and non-U.S.
persons involved in the export of U.S.-origin goods can request
specific authorization from OFAC to engage in transactions that are
initiated and completed entirely within the JPOA Period and/or the
Extended JPOA Period to ensure the safe operation of Iranian commercial
passenger aircraft, including transactions involving Iran Air.
2. Correspondent or Payable-Through Account Sanctions: The USG will
not impose correspondent or payable-through account sanctions under
section 3(a)(i) of E.O. 13645 and section 561.201(a)(5)(ii) of the IFSR
on foreign financial institutions that, exclusively during the JPOA
Period and/or the Extended JPOA Period, conduct or facilitate financial
transactions relating to the type of activities covered by the Amended
SLP that are conducted on behalf of non-U.S. persons not otherwise
subject to the ITSR, provided such activities are initiated and
completed entirely within the JPOA Period and/or the Extended JPOA
Period, and further provided that the transactions do not involve
persons on the SDN List other than Iran Air or any Iranian depository
institutions listed solely pursuant to E.O. 13599.
3. Blocking Sanctions: The USG will not impose blocking sanctions
under section 1(a)(iii) of E.O. 13382; sections 2(a)(i)-(ii) of E.O.
13645; and section 544.201(a)(3) of the Weapons of the Mass Destruction
Proliferators Sanctions Regulations, 31 CFR part 544 (WMDPSR), with
respect to persons that, exclusively during the JPOA Period and/or the
Extended JPOA Period, materially assist, sponsor, or provide financial,
material, or technological support for, or goods or services to or in
support of, Iran Air in connection with activities intended to ensure
the safe operation of Iranian commercial passenger aircraft, provided
such activities are outlined in the JPOA and are initiated and
completed entirely within the JPOA Period and/or the Extended JPOA
Period and do not involve persons on the SDN List other than Iran Air
or any Iranian depository institutions listed solely pursuant to E.O.
13599.
In addition, please see Section VII below, which describes the
exercise of certain waiver authorities relevant to the activities and
transactions described in this section.
V. Sanctions Related to Iran's Export of Crude Oil
The JPOA provides for certain sanctions relief related to Iran's
crude oil sales. Under the JPOA, the USG will ``pause efforts to
further reduce Iran's crude oil sales, enabling Iran's current
customers to purchase their current
[[Page 45236]]
average amounts of crude oil. Enable the repatriation of an agreed
amount of revenue held abroad. For such oil sales, suspend U.S.
sanctions on associated insurance and transportation services.'' To
implement this provision of the JPOA during the Extended JPOA Period,
the USG will continue to take the following steps to allow for China,
India, Japan, the Republic of Korea, Taiwan, and Turkey to maintain
their current average level of imports from Iran during the JPOA Period
and the Extended JPOA Period and to render non-sanctionable a limited
number of transactions for the release in installments of an agreed
amount of revenue to Iran for receipt at participating foreign
financial institutions in selected jurisdictions:
1. Correspondent or Payable-Through Account Sanctions: The USG will
not impose correspondent or payable-through account sanctions under
sections 1(a)(i)-(ii) of E.O. 13622 (as amended by section 16(a) of
E.O. 13645); section 3(a)(i) of E.O. 13645; and sections 561.201(a)(5),
561.204(a), and 561.204(b)(1)-(2) of the IFSR with respect to foreign
financial institutions that conduct or facilitate transactions
exclusively during the JPOA Period and/or the Extended JPOA Period by
non-U.S. persons not otherwise subject to the ITSR for exports of
petroleum and petroleum products from Iran to China, India, Japan, the
Republic of Korea, Taiwan, or Turkey, and associated insurance \7\ and
transportation services, that are initiated and completed entirely
within the JPOA Period and/or the Extended JPOA Period, including
transactions involving the National Iranian Oil Company (NIOC) or the
National Iranian Tanker Company (NITC), provided that the transactions
do not involve persons on the SDN List other than NIOC, NITC, or any
Iranian depository institutions listed solely pursuant to E.O.
13599.\8\
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\7\ See footnote 1 above for additional information regarding
associated insurance payments.
\8\ For the purposes of the sanctions relief with respect to
Iran's exports of crude oil described in this section, the term
``associated insurance and transportation services'' means insurance
and transportation services ordinarily incident to the underlying
activity covered by the JPOA, provided, however, such services may
not involve persons on the SDN List other than NIOC, NITC, or any
Iranian depository institutions listed solely pursuant to E.O.
13599.
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2. Blocking Sanctions: The USG will not impose blocking sanctions
under section 1(a)(iii) of E.O. 13382; section 5(a) of E.O. 13622;
sections 2(a)(i)-(ii) of E.O. 13645; section 544.201(a)(3) of the
WMDPSR; and section 560.211(c)(2) of the ITSR with respect to non-U.S.
persons not otherwise subject to the ITSR that, exclusively during the
JPOA Period and/or the Extended JPOA Period, materially assist,
sponsor, or provide financial, material, or technological support for,
or goods or services in support of, exports of petroleum and petroleum
products from Iran to China, India, Japan, the Republic of Korea,
Taiwan, or Turkey, and associated insurance \9\ and transportation
services, including for activities involving NIOC or NITC, provided
such activities are initiated and completed entirely within the JPOA
Period and/or the Extended JPOA Period, and further provided that the
activities do not involve persons on the SDN List other than NIOC,
NITC, or any Iranian depository institutions listed solely pursuant to
E.O. 13599.
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\9\ See footnote 1 above for additional information regarding
associated insurance payments.
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3. Menu-Based Sanctions: The USG will not impose sanctions under
section 2(a)(i) of E.O. 13622 (as amended by section 16(c) of E.O.
13645) on non-U.S. persons not otherwise subject to the ITSR who engage
in transactions exclusively during the JPOA Period and/or the Extended
JPOA Period for exports of petroleum and petroleum products from Iran
to China, India, Japan, the Republic of Korea, Taiwan, or Turkey, and
associated insurance \10\ and transportation services, including
transactions involving NIOC or NITC, provided such activities are
initiated and completed entirely within the JPOA Period and/or the
Extended JPOA Period, and further provided that the activities do not
involve persons on the SDN List other than NIOC, NITC, or any Iranian
depository institutions listed solely pursuant to E.O. 13599.
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\10\ See footnote 1 above for additional information regarding
associated insurance payments.
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In addition, please see Section VII below, which describes the
exercise of certain waiver authorities relevant to the activities and
transactions described in this section.
VI. Facilitation of Humanitarian and Certain Other Transactions
The JPOA provides for the establishment of ``a financial channel to
facilitate humanitarian trade for Iran's domestic needs using Iranian
oil revenues held abroad. Humanitarian trade [is] defined as
transactions involving food and agricultural products, medicine,
medical devices, and medical expenses incurred abroad. This channel
could also enable transactions required to pay Iran's UN obligations .
. . and direct tuition payments to universities and colleges for
Iranian students studying abroad.'' In furtherance of the JPOA, the
P5+1 and Iran established mechanisms to further facilitate the purchase
of, and payment for, the export of food, agricultural commodities,
medicine, and medical devices to Iran, as well as to facilitate Iran's
payments of UN obligations, Iran's payments for medical expenses
incurred abroad by Iranian citizens, and Iran's payments of an agreed
amount of governmental tuition assistance for Iranian students studying
abroad. The mechanisms will remain in place during the Extended JPOA
Period. Foreign financial institutions whose involvement in hosting
these new mechanisms was sought by Iran have been contacted directly by
the U.S. Department of the Treasury and provided specific guidance.
Please note that the JPOA-related mechanism for humanitarian trade
transactions is not the exclusive way to finance or facilitate the sale
of food, agricultural commodities, medicine, and medical devices to
Iran by non-U.S. persons not otherwise subject to the ITSR, which is
not generally sanctionable so long as the transaction does not involve
persons designated in connection with Iran's support for international
terrorism or Iran's proliferation of weapons of mass destruction (WMD)
or WMD delivery systems. Therefore, transactions for the export of
food, agricultural commodities, medicine, and medical devices to Iran
generally may be processed pursuant to pre-existing exceptions and are
not required to be processed through the new mechanism.
In addition, please see Section VII below, which describes the
exercise of certain waiver authorities relevant to the activities and
transactions described in this section.
VII. Waivers
To enable the implementation during the Extended JPOA Period of the
sanctions relief outlined in the JPOA and described in detail in
sections I through VI of this guidance, the USG has renewed, as needed,
limited waivers of sanctions under: Section 1245(d)(1) of the National
Defense Authorization Act for Fiscal Year 2012 (NDAA) in connection
with exports of crude oil from Iran to China, India, Japan, the
Republic of Korea, Taiwan, and Turkey and for transactions related to
the release in installments of an agreed amount of revenues to Iran for
receipt at participating foreign financial institutions in selected
jurisdictions and the establishment of the financial channel provided
for in the JPOA; section 302(a) of the Iran Threat Reduction and Syria
Human Rights Act
[[Page 45237]]
of 2012 with respect to certain transactions involving NIOC; section
5(A)(7) of the Iran Sanctions Act of 1996 with respect to certain
transactions involving NIOC and NITC; and the following sub-sections of
the Iran Freedom and Counter-Proliferation Act of 2012:
1. 1244(c)(1)--to the extent required for transactions by non-U.S.
persons (and, in the case of the civil aviation activities described in
section IV, U.S. persons): (i) For Iran's export of crude oil to China,
India, Japan, the Republic of Korea, Taiwan, and Turkey, excluding any
transactions involving persons on the SDN List other than NIOC and
NITC; (ii) for the export from Iran of petrochemical products,
excluding any transactions involving persons on the SDN List other than
the petrochemical companies listed in the Annex to this guidance; (iii)
for the sale of precious metals to or from Iran, excluding any
transactions involving persons on the SDN List other than any political
subdivision, agency, or instrumentality of the Government of Iran
listed solely pursuant to E.O. 13599; and (iv) for the supply and
installation of spare parts necessary for the safety of Iranian civil
aviation flights and for safety-related inspections and repairs in
Iran, excluding any transactions involving persons on the SDN List
other than Iran Air.
2. 1244(d)--to the extent required for transactions by non-U.S.
persons related to Iran's export of crude oil to China, India, Japan,
the Republic of Korea, Taiwan, and Turkey, excluding any transactions
involving persons on the SDN List other than NIOC and NITC.
3. 1245(a)(1)(A) and 1245(c)--to the extent required for
transactions by non-U.S. persons for the sale, supply, or transfer of
precious metals to or from Iran, provided that such transactions do not
involve persons on the SDN List other than any political subdivision,
agency, or instrumentality of the Government of Iran listed solely
pursuant to E.O. 13599 or any Iranian depository institutions listed
solely pursuant to E.O. 13599, and further provided that such
transactions do not involve funds credited to an account located
outside Iran pursuant to section 1245(d)(4)(D)(ii)(II) of NDAA.
4. 1246(a)--to the extent required for transactions by non-U.S.
persons (and, in the case of the civil aviation activities described in
section IV, U.S. persons) for: (i) Iran's exports of crude oil to
China, India, Japan, the Republic of Korea, Taiwan, and Turkey,
excluding any transactions involving persons on the SDN List other than
NIOC and NITC; (ii) the export from Iran of petrochemical products,
excluding any transactions involving persons on the SDN List other than
the petrochemical companies listed in the Annex to this guidance; (iii)
the sale of precious metals to or from Iran, excluding any transactions
involving persons on the SDN List other than any political subdivision,
agency, or instrumentality of the Government of Iran listed solely
pursuant to E.O. 13599; (iv) the sale, supply, or transfer to Iran of
goods and services used in connection with the automotive sector of
Iran, excluding any transactions involving persons on the SDN List; and
(v) the supply and installation of spare parts necessary for the safety
of Iranian civil aviation flights and for safety-related inspections
and repairs in Iran, excluding any transactions involving persons on
the SDN List other than Iran Air.
5. 1247(a)--to the extent required for transactions by foreign
financial institutions on behalf of: (i) NIOC and NITC related to
Iran's exports of crude oil to China, India, Japan, the Republic of
Korea, Taiwan, and Turkey; (ii) the entities listed in the Annex to
this guidance for the export of petrochemical products from Iran; (iii)
any political subdivision, agency, or instrumentality of the Government
of Iran on the SDN List solely pursuant to E.O. 13599 for the sale of
precious metals to or from Iran; and (iv) Iran Air for the supply and
installation of spare parts necessary for the safety of Iranian civil
aviation flights and for safety-related inspections and repairs in
Iran.
Annex
1. Bandar Imam Petrochemical Company;
2. Bou Ali Sina Petrochemical Company;
3. Ghaed Bassir Petrochemical Products Company;
4. Iran Petrochemical Commercial Company;
5. Jam Petrochemical Company;
6. Marjan Petrochemical Company;
7. Mobin Petrochemical Company;
8. National Petrochemical Company;
9. Nouri Petrochemical Company;
10. Pars Petrochemical Company;
11. Sadaf Petrochemical Assaluyeh Company;
12. Shahid Tondgooyan; Petrochemical Company;
13. Shazand Petrochemical Company; and
14. Tabriz Petrochemical Company.
Issued: July 21, 2014.
Dated: July 29, 2014.
Adam J. Szubin,
Director, Office of Foreign Assets Control.
[FR Doc. 2014-18315 Filed 8-1-14; 8:45 am]
BILLING CODE 4810-AL-P