Publication of Guidance Relating to the Provision of Certain Temporary Sanctions Relief, 5025-5029 [2014-01939]
Download as PDF
Federal Register / Vol. 79, No. 20 / Thursday, January 30, 2014 / Notices
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
Publication of Guidance Relating to the
Provision of Certain Temporary
Sanctions Relief
Office of Foreign Assets
Control, Treasury.
ACTION: Notice, publication of guidance.
AGENCY:
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 (Guidance), issued on
January 20, 2014. The Guidance sets out
how, in furtherance of the U.S.
Government’s (USG) commitments
under the JPOA, the Department of State
and the Department of the Treasury will
implement sanctions relief relating to
certain activities and associated services
taking place exclusively during the sixmonth period beginning on January 20,
2014, and ending July 20, 2014.
DATES: Effective Date: January 20, 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:
SUMMARY:
mstockstill on DSK4VPTVN1PROD with NOTICES
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-ondemand service, tel.: 202–622–0077.
Background
On November 24, 2013, the United
States and its partners in the P5+1
reached an initial understanding with
Iran, outlined in a 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. In furtherance of
VerDate Mar<15>2010
18:24 Jan 29, 2014
Jkt 232001
the USG’s commitments under the
JPOA, the Department of State and the
Department of the Treasury will
implement sanctions relief relating to
certain activities and associated services
taking place exclusively during the sixmonth period beginning on January 20,
2014, and ending July 20, 2014, 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 January 20,
2014. At the time of its issuance on
January 20, 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
On November 24, 2013, the United
States and its partners in the P5+1
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. 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 will
implement sanctions relief relating to
certain activities and associated services
taking place exclusively during the sixmonth period beginning on January 20,
2014, and ending July 20, 2014 (the
‘‘JPOA Period’’), 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
PO 00000
Frm 00162
Fmt 4703
Sfmt 4703
5025
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).
The USG retains the authority to
continue imposing sanctions under the
authorities identified below during the
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 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
Period for activities occurring before
and during the JPOA Period under other
authorities, such as those used to
combat terrorism and the proliferation
of weapons of mass destruction. During
the 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,1
if otherwise prohibited under any
sanctions program administered by the
USG.
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, 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 Consistent with section 218 of the Iran Threat
Reduction and Syria Human Rights Act of 2012
(TRA) 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.
E:\FR\FM\30JAN1.SGM
30JAN1
5026
Federal Register / Vol. 79, No. 20 / Thursday, January 30, 2014 / Notices
mstockstill on DSK4VPTVN1PROD with NOTICES
1. Correspondent or Payable-Through
Account Sanctions: The USG will not
impose correspondent or payablethrough 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 by non-U.S.
persons not otherwise subject to the
ITSR for exports of petrochemical
products 2 from Iran that are initiated
and completed entirely within the 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 3 listed solely
pursuant to E.O. 13599.
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, 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, 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.
2 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.
3 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).
VerDate Mar<15>2010
18:24 Jan 29, 2014
Jkt 232001
3. Menu-based Sanctions: 4 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 for
exports of petrochemical products from
Iran that are initiated and completed
entirely within the 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.
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, 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 payablethrough account sanctions under section
3(a)(ii) of E.O. 13645 with respect to
foreign financial institutions that,
exclusively during the JPOA 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 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
section 6 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
4 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.’’
PO 00000
Frm 00163
Fmt 4703
Sfmt 4703
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, 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,
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 payablethrough account sanctions under section
3(a)(i) of E.O. 13645 with respect to
foreign financial institutions that,
exclusively during the 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,
provided that the funds for these
purchases of gold and other precious
metals may not be drawn from
Restricted Funds,5 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, materially assist, sponsor,
or provide financial, material, or
technological support for, or goods or
services in support of, the purchase or
5 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.
E:\FR\FM\30JAN1.SGM
30JAN1
Federal Register / Vol. 79, No. 20 / Thursday, January 30, 2014 / Notices
mstockstill on DSK4VPTVN1PROD with NOTICES
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, 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, the USG will take the
following steps:
1. Statement of Licensing Policy:
OFAC will issue a new Statement of
Licensing Policy (SLP) that covers
certain activities related to the safety of
Iran’s civil aviation industry. The SLP
will establish, during the JPOA Period,
a favorable licensing policy regime
under which U.S. persons, U.S.-owned
or -controlled foreign entities, and nonU.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 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 payablethrough 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, conduct or
facilitate financial transactions relating
to the type of activities covered by the
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 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.
VerDate Mar<15>2010
18:24 Jan 29, 2014
Jkt 232001
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, 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 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, 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 Period and to render nonsanctionable 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 payablethrough 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;
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 by
non-U.S. persons not otherwise subject
to the ITSR for exports of petroleum and
PO 00000
Frm 00164
Fmt 4703
Sfmt 4703
5027
petroleum products from Iran to China,
India, Japan, the Republic of Korea,
Taiwan, or Turkey, and associated
insurance and transportation services,
that are initiated and completed entirely
within the 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. 13599.6
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, 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 and transportation
services, including for activities
involving NIOC or NITC, provided such
activities are initiated and completed
entirely within the 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.
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 for
exports of petroleum and petroleum
products from Iran to China, India,
Japan, the Republic of Korea, Taiwan, or
Turkey, and associated insurance and
transportation services, including
transactions involving NIOC or NITC,
provided such activities are initiated
and completed entirely within the 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.
6 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.
E:\FR\FM\30JAN1.SGM
30JAN1
5028
Federal Register / Vol. 79, No. 20 / Thursday, January 30, 2014 / Notices
mstockstill on DSK4VPTVN1PROD with NOTICES
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 are establishing 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. Foreign financial institutions
whose involvement in hosting these
new mechanisms is sought by Iran will
be contacted directly by the U.S.
Department of the Treasury and
provided specific guidance.
Please note that the new 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 of the
sanctions relief outlined in the JPOA
VerDate Mar<15>2010
18:24 Jan 29, 2014
Jkt 232001
and described in detail in sections I
through VI of this guidance, the USG
has issued 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 TRA with respect
to certain transactions involving NIOC;
section 5(A)(7) of ISA with respect to
certain transactions involving NIOC and
NITC; and the following sub-sections of
IFCA:
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 nonU.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
PO 00000
Frm 00165
Fmt 4703
Sfmt 4703
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.
Issued: January 20, 2014.
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;
E:\FR\FM\30JAN1.SGM
30JAN1
Federal Register / Vol. 79, No. 20 / Thursday, January 30, 2014 / Notices
10. Pars Petrochemical Company;
11. Sadaf Petrochemical Assaluyeh
Company;
12. Shahid Tondgooyan
Petrochemical Company;
13. Shazand Petrochemical Company;
and
14. Tabriz Petrochemical Company.
Dated: January 23, 2014.
Adam J. Szubin,
Director, Office of Foreign Assets Control.
[FR Doc. 2014–01939 Filed 1–29–14; 8:45 am]
BILLING CODE 4810–AL–P
DEPARTMENT OF VETERANS
AFFAIRS
[OMB Control No. 2900–0711]
Proposed Information Collection (VBA
Loan Guaranty Service Lender
Satisfaction Survey) Activity:
Comment Request
Veterans Benefits
Administration, Department of Veterans
Affairs.
ACTION: Notice.
AGENCY:
The Veterans Benefits
Administration (VBA), Department of
Veterans Affairs (VA), is announcing an
opportunity for public comment on the
proposed collection of certain
information by the agency. Under the
Paperwork Reduction Act (PRA) of
1995, Federal agencies are required to
publish notice in the Federal Register
concerning each proposed collection of
information, including each proposed
revision of a currently approved
collection, and allow 60 days for public
comment in response to the notice. This
notice solicits comments for information
needed to determine lenders satisfaction
with VA Loan Guaranty Service.
DATES: Written comments and
recommendations on the proposed
collection of information should be
received on or before March 31, 2014.
ADDRESSES: Submit written comments
on the collection of information through
Federal Docket Management System
(FDMS) at www.Regulations.gov or to
Nancy J. Kessinger, Veterans Benefits
Administration (20M35), Department of
Veterans Affairs, 810 Vermont Avenue
NW., Washington, DC 20420 or email to
nancy.kessinger@va.gov. Please refer to
‘‘OMB Control No. 2900–0711’’ in any
correspondence. During the comment
period, comments may be viewed online
through FDMS.
FOR FURTHER INFORMATION CONTACT:
Nancy J. Kessinger at (202) 632–8924 or
Fax (202) 632–8925.
SUPPLEMENTARY INFORMATION: Under the
PRA of 1995 (Pub. L. 104–13; 44 U.S.C.
mstockstill on DSK4VPTVN1PROD with NOTICES
SUMMARY:
VerDate Mar<15>2010
18:24 Jan 29, 2014
Jkt 232001
3501–3521), Federal agencies must
obtain approval from the Office of
Management and Budget (OMB) for each
collection of information they conduct
or sponsor. This request for comment is
being made pursuant to Section
3506(c)(2)(A) of the PRA.
With respect to the following
collection of information, VBA invites
comments on: (1) Whether the proposed
collection of information is necessary
for the proper performance of VBA’s
functions, including whether the
information will have practical utility;
(2) the accuracy of VBA’s estimate of the
burden of the proposed collection of
information; (3) ways to enhance the
quality, utility, and clarity of the
information to be collected; and (4)
ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
the use of other forms of information
technology.
Title: Veterans Benefits
Administration (VBA) Loan Guaranty
Service Lender Satisfaction Survey.
OMB Control Number: 2900–0711.
Type of Review: Revision of a
currently approved collection.
Abstract: The survey will be used to
gather information from lenders about
VA Loan Guaranty Program. The
information collected will allow the VA
to determine lenders satisfaction with
the VA’s processes and to make
improvements to the program to better
serve the needs of eligible veterans.
Affected Public: Business or other forprofit.
Estimated Annual Burden: 251.5
hours.
Estimated Average Burden per
Respondent: 15 minutes.
Frequency of Response: On occasion.
Estimated Number of Respondents:
1006.
Dated: January 24, 2014.
By direction of the Secretary.
Crystal Rennie, Department
Clearance Officer, Department of Veterans
Affairs.
[FR Doc. 2014–01769 Filed 1–29–14; 8:45 am]
BILLING CODE 8320–01–P
DEPARTMENT OF VETERANS
AFFAIRS
Voluntary Service National Advisory
Committee; Notice of Meeting
Late Notice: Due to exceptional
circumstances, namely, because of the
Government shut down, the Federal
Register was unable to timely publish
the original notice for this meeting. In
the interest of promoting openness and
PO 00000
Frm 00166
Fmt 4703
Sfmt 4703
5029
transparency—the goals of the Federal
Advisory Committee Act (FACA)—we
are publishing a late notice in the
Federal Register to inform the public
that the meeting was held on the dates
and times listed in the original notice
below. The meeting records can be
viewed by the public at https://
www.volunteer.va.gov/NAC.asp and the
public may submit written comments as
described below.
The Department of Veterans Affairs
(VA) gives notice under FACA, 5 U.S.C.
App. 2, that the Executive Committee of
the VA Voluntary Service (VAVS)
National Advisory Committee (NAC)
will meet October 24–25, 2013, at the
Embassy Suites Raleigh-Durham
Research Triangle Park, 201 Harrison
Oaks Boulevard, Cary, North Carolina.
The sessions will begin at 8:30 a.m. each
day and end at 4:30 p.m. on October 24,
and at 12 noon on October 25, 2013. The
meeting is open to the public. Please
note that less than 15 calendar days’
notice of this meeting is being provided
due to exceptional circumstances,
namely, that because of the Government
shut down, the Federal Register was
unable to timely publish the original
notice for this meeting. See 41 CFR 102–
3.150(b).
The Committee, comprised of fiftyfour National voluntary organizations,
advises the Secretary, through the
Under Secretary for Health, on the
coordination and promotion of
volunteer activities within VA health
care facilities. The Executive Committee
consists of twenty representatives from
the NAC member organizations.
On October 24, agenda topics will
include NAC goals and objectives;
review of the March 2013 NAC annual
meeting minutes; VAVS update on the
Voluntary Service program’s activities;
Parke Board update; evaluations of the
2013 NAC annual meeting; review of
membership criteria and process; and
plans for 2014 NAC annual meeting (to
include workshops and plenary
sessions).
On October 25, agenda topics will
include subcommittee reports; review of
standard operating procedures; review
of Fiscal Year 2013 organization data;
2015 NAC annual meeting plans; and
any new business.
No time will be allocated at this
meeting for receiving oral presentations
from the public. However, the public
may submit written statements for the
Committee’s review to Mrs. Sabrina C.
Clark, Designated Federal Officer,
Voluntary Service Office (10B2A),
Department of Veterans Affairs, 810
Vermont Avenue NW., Washington, DC
20420, or email at Sabrina.Clark@
VA.gov. Any member of the public
E:\FR\FM\30JAN1.SGM
30JAN1
Agencies
[Federal Register Volume 79, Number 20 (Thursday, January 30, 2014)]
[Notices]
[Pages 5025-5029]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-01939]
[[Page 5025]]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
Publication of Guidance Relating to the Provision of Certain
Temporary Sanctions Relief
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Notice, publication of guidance.
-----------------------------------------------------------------------
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 (Guidance), issued on January 20, 2014. The
Guidance sets out how, in furtherance of the U.S. Government's (USG)
commitments under the JPOA, the Department of State and the Department
of the Treasury will implement 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.
DATES: Effective Date: January 20, 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 reached an initial understanding with Iran, outlined in a 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. In
furtherance of the USG's commitments under the JPOA, the Department of
State and the Department of the Treasury will implement 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, 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 January 20, 2014. At the time of its issuance on
January 20, 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
On November 24, 2013, the United States and its partners in the
P5+1 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. 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 will implement 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''), 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).
The USG retains the authority to continue imposing sanctions under
the authorities identified below during the 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 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 Period for
activities occurring before and during the JPOA Period under other
authorities, such as those used to combat terrorism and the
proliferation of weapons of mass destruction. During the 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,\1\ if otherwise prohibited under
any sanctions program administered by the USG.
---------------------------------------------------------------------------
\1\ Consistent with section 218 of the Iran Threat Reduction and
Syria Human Rights Act of 2012 (TRA) 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.
---------------------------------------------------------------------------
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, 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''):
[[Page 5026]]
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 by non-U.S. persons not
otherwise subject to the ITSR for exports of petrochemical products \2\
from Iran that are initiated and completed entirely within the 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 \3\ listed solely pursuant to E.O. 13599.
---------------------------------------------------------------------------
\2\ 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.
\3\ 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).
---------------------------------------------------------------------------
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, 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,
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: \4\ 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 for exports
of petrochemical products from Iran that are initiated and completed
entirely within the 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.
---------------------------------------------------------------------------
\4\ 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.''
---------------------------------------------------------------------------
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, 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 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 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 section 6 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,
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, 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 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,
provided that the funds for these purchases of gold and other precious
metals may not be drawn from Restricted Funds,\5\ 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.
---------------------------------------------------------------------------
\5\ 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.
---------------------------------------------------------------------------
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, materially assist, sponsor, or
provide financial, material, or technological support for, or goods or
services in support of, the purchase or
[[Page 5027]]
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, 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, the USG will take the following steps:
1. Statement of Licensing Policy: OFAC will issue a new Statement
of Licensing Policy (SLP) that covers certain activities related to the
safety of Iran's civil aviation industry. The SLP will establish,
during the 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 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, conduct or facilitate financial transactions relating to the
type of activities covered by the 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 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, 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 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, 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 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; 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 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 and transportation services, that are
initiated and completed entirely within the 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.\6\
---------------------------------------------------------------------------
\6\ 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.
---------------------------------------------------------------------------
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, 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 and transportation services, including for activities
involving NIOC or NITC, provided such activities are initiated and
completed entirely within the 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.
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 for exports of
petroleum and petroleum products from Iran to China, India, Japan, the
Republic of Korea, Taiwan, or Turkey, and associated insurance and
transportation services, including transactions involving NIOC or NITC,
provided such activities are initiated and completed entirely within
the 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.
[[Page 5028]]
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 are establishing 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. Foreign financial institutions whose
involvement in hosting these new mechanisms is sought by Iran will be
contacted directly by the U.S. Department of the Treasury and provided
specific guidance.
Please note that the new 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 of the sanctions relief outlined in
the JPOA and described in detail in sections I through VI of this
guidance, the USG has issued 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 TRA
with respect to certain transactions involving NIOC; section 5(A)(7) of
ISA with respect to certain transactions involving NIOC and NITC; and
the following sub-sections of IFCA:
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.
Issued: January 20, 2014.
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;
[[Page 5029]]
10. Pars Petrochemical Company;
11. Sadaf Petrochemical Assaluyeh Company;
12. Shahid Tondgooyan Petrochemical Company;
13. Shazand Petrochemical Company; and
14. Tabriz Petrochemical Company.
Dated: January 23, 2014.
Adam J. Szubin,
Director, Office of Foreign Assets Control.
[FR Doc. 2014-01939 Filed 1-29-14; 8:45 am]
BILLING CODE 4810-AL-P