Publication of Guidance Relating to the Provision of Certain Temporary Sanctions Relief, as Extended Through June 30, 2015
Notice published December 9, 2014 · 79 FR 73141
- Document number
- FR Doc. 2014-28805
- Type
- Notice
- Published
- December 9, 2014
- Citation
- 79 FR 73141 (pages 73,141–73,146)
- Action
- Notice, publication of guidance.
- Effective
- November 25, 2014
- Dates
- Effective Date: November 25, 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, 2014, between the P5+1 and the Islamic Republic of Iran, as Extended Through June 30, 2015 (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 236 (Tuesday, December 9, 2014)]
[Notices]
[Pages 73141-73146]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-28805]
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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 Through June 30, 2015
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
[[Page 73142]]
Relating to the Provision of Certain Temporary Sanctions Relief in
Order to Implement the Joint Plan Of Action (JPOA) Reached on November
24, 2014, between the P5+1 and the Islamic Republic of Iran, as
Extended Through June 30, 2015 (Guidance).
DATES: Effective Date: November 25, 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
The text of the Guidance 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 was renewed by mutual consent of the P5+1 and Iran on July
19, 2014, and November 24, 2014, extending the temporary sanctions
relief provided under the JPOA to allow the P5+1 to continue to
negotiate a long-term comprehensive solution to ensure that Iran's
nuclear program will be exclusively peaceful. During the period
beginning on January 20, 2014, and ending on June 30, 2015 (JPOA Relief
Period), the sanctions relief the USG committed to during the JPOA will
be implemented 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 Guidance on November 25, 2014. At the time of its issuance
on November 25, 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 JUNE 30, 2015
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. 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 was renewed by mutual consent of the P5 + 1 and Iran on
July 19, 2014, and November 24, 2014, extending the temporary sanctions
relief provided under the JPOA to allow the P5+1 and Iran to continue
to negotiate a long-term comprehensive solution to ensure that Iran's
nuclear program will be exclusively peaceful. During the period
beginning on January 20, 2014, and ending on June 30, 2015 (JPOA Relief
Period), the sanctions relief the USG committed to during the JPOA will
be implemented 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 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 Relief Period may be paid after June 30, 2015,
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 JPOA Relief 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 Relief 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 JPOA Relief Period for activities occurring before and
during the JPOA Relief Period under other authorities, such as those
used to combat terrorism and the proliferation of weapons of mass
destruction. During the JPOA Relief 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
[[Page 73143]]
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 JPOA
Relief Period, the USG will 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 Relief 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 Relief 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 FR 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 Relief 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 Relief
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 Relief Period for
exports of petrochemical products from Iran that are initiated and
completed entirely within the JPOA Relief 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 JPOA Relief Period, the USG will
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 Relief Period, knowingly
conduct or facilitate 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 Relief 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 Relief
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 JPOA
Relief Period, the USG will 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 Relief 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
[[Page 73144]]
entirely within the JPOA Relief Period, provided that the funds for
these purchases of gold and other precious metals may not be 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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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 Relief 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 Relief Period,
provided that the funds for these purchases of gold and other precious
metals are not 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.
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 JPOA Relief Period, the USG will
take the following steps:
1. Statement of Licensing Policy: OFAC is issuing a Second Amended
Statement of Licensing Policy on Activities Related to the Safety of
Iran's Civil Aviation Industry (Second Amended SLP) to extend the date
of the previously-issued statements of licensing policy to the end of
the JPOA Relief Period. The Second Amended SLP will continue, during
the period beginning on November 25, 2014 and ending on June 30, 2015,
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 Relief 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
Relief Period, conduct or facilitate financial transactions relating to
the type of activities covered by the Second 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 Relief 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 Relief 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 Relief 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 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 JPOA Relief Period, the USG will 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 Relief 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 Relief 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
Relief 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.
[[Page 73145]]
persons not otherwise subject to the ITSR that, exclusively during the
JPOA Relief 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 Relief 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 Relief 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 Relief 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 JPOA Relief
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 JPOA Relief 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 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
[[Page 73146]]
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.
Dated: November 25, 2014.
Adam J. Szubin
Director, Office of Foreign Assets Control.
[FR Doc. 2014-28805 Filed 12-8-14; 8:45 am]
BILLING CODE 4810-AL-P