Publication of Guidance Relating to the Provision of Certain Temporary Sanctions Relief, as Extended, 45233-45237 [2014-18315]
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Federal Register / Vol. 79, No. 149 / Monday, August 4, 2014 / Notices
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Decided: July 30, 2014.
By the Board, Rachel D. Campbell,
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Clearance Clerk.
[FR Doc. 2014–18337 Filed 8–1–14; 8:45 am]
BILLING CODE 4915–01–P
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
Publication of Guidance Relating to the
Provision of Certain Temporary
Sanctions Relief, as Extended
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, as Extended Through
November 24, 2014 (Guidance).
DATES: Effective Date: July 21, 2014.
FOR FURTHER INFORMATION CONTACT:
Assistant Director for Licensing, tel.:
202–622–2480, Assistant Director for
Policy, tel.: 202–622–2402, Assistant
Director for Regulatory Affairs, tel.: 202–
622–4855, Assistant Director for
Sanctions Compliance & Evaluation,
tel.: 202–622–2490, Office of Foreign
Assets Control, or Chief Counsel
(Foreign Assets Control), tel.: 202–622–
2410, Office of the General Counsel,
Department of the Treasury (not toll free
numbers).
SUPPLEMENTARY INFORMATION:
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SUMMARY:
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Electronic and Facsimile Availability
Guidance
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.
45233
U.S. Department of the Treasury
U.S. Department of State
Background
Guidance Relating to the Provision of
Certain Temporary Sanctions Relief in
Order To Implement the Joint Plan of
Action Reached on November 24, 2013,
Between the P5 + 1 and the Islamic
Republic of Iran, as Extended Through
November 24, 2014
On November 24, 2013, the United
States and its partners in the P5 + 1
(China, France, Germany, Russia, the
United Kingdom, and the United States,
coordinated by the European Union’s
High Representative) reached an initial
understanding with Iran, outlined in 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 sixmonth period beginning on January 20,
2014, and ending July 20, 2014 (the
JPOA Period).
The JPOA was renewed by mutual
consent of the P5 + 1 and Iran on July
19, 2014, extending the temporary
sanctions relief provided under the
JPOA to cover the period beginning on
July 21, 2014, and ending November 24,
2014 (the Extended JPOA Period), in
order to continue to negotiate a longterm comprehensive solution to ensure
that Iran’s nuclear program will be
exclusively peaceful. During the
Extended JPOA Period, the sanctions
relief the USG committed to during the
JPOA will be continued, as set out in the
Guidance. The USG retains the
authority to revoke this limited
sanctions relief at any time if Iran fails
to meet its commitments under the
JPOA.
The Department of State and the
Department of the Treasury jointly
issued the updated Guidance on July 21,
2014. At the time of its issuance on July
21, 2014, OFAC made the Guidance
available on the OFAC Web site:
www.treasury.gov/ofac and the
Department of State made the Guidance
available on its Web site: www.state.gov.
With this notice, OFAC is publishing
the Guidance in the Federal Register.
On November 24, 2013, the United
States and its partners in the P5 + 1
(China, France, Germany, Russia, the
United Kingdom, and the United States,
coordinated by the European Union’s
High Representative) reached an initial
understanding with Iran, outlined in a
Joint Plan of Action (JPOA), that halts
progress on Iran’s nuclear program and
rolls it back in key respects. In return for
Iran’s commitment to place meaningful
limits on its nuclear program, the P5 +
1 committed to provide Iran with
limited, targeted, and reversible
sanctions relief for a six-month period,
renewable by mutual consent. In
furtherance of the U.S. Government’s
(USG) commitments under the JPOA,
the U.S. Department of State and the
U.S. Department of the Treasury
implemented sanctions relief relating to
certain activities and associated services
taking place exclusively during the sixmonth period beginning on January 20,
2014, and ending July 20, 2014 (the
JPOA Period).
The JPOA was renewed by mutual
consent of the P5 + 1 and Iran on July
19, 2014, extending the temporary
sanctions relief provided under the
JPOA to cover the period beginning on
July 21, 2014, and ending November 24,
2014 (the Extended JPOA Period), in
order to continue to negotiate a longterm comprehensive solution to ensure
that Iran’s nuclear program will be
exclusively peaceful. During the
Extended JPOA Period, the sanctions
relief the USG committed to during the
JPOA will be continued, as set out
below. The USG retains the authority to
revoke this limited sanctions relief at
any time if Iran fails to meet its
commitments under the JPOA.
For purposes of the JPOA sanctions
relief, the USG interprets the term
‘‘associated service’’ to mean any
necessary service—including any
insurance, transportation, or financial
service—ordinarily incident to the
underlying activity covered by the
JPOA, provided, however, that unless
otherwise noted, such services may not
involve persons identified on the
Department of the Treasury’s Office of
Foreign Assets Control’s (OFAC) List of
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Federal Register / Vol. 79, No. 149 / Monday, August 4, 2014 / Notices
Specially Designated Nationals and
Blocked Persons (SDN List).1
The USG retains the authority to
continue imposing sanctions under the
authorities identified below during the
Extended JPOA Period for activities that
occurred prior to January 20, 2014.
Moreover, the USG retains the authority
to impose sanctions under the
authorities outlined below for activities
occurring during the JPOA Period and/
or the Extended JPOA Period to the
extent such activities are materially
inconsistent with sanctions relief
described in the JPOA and outlined in
this guidance. The USG also retains the
authority to continue imposing
sanctions during the Extended JPOA
Period for activities occurring before
and during the JPOA Period and the
Extended JPOA Period under other
authorities, such as those used to
combat terrorism and the proliferation
of weapons of mass destruction. During
the Extended JPOA Period, the USG will
continue to vigorously enforce our
sanctions against Iran, including by
taking action against those who seek to
evade or circumvent our sanctions.
Please note that, with the exception of
civil aviation activities described in
section IV and the humanitarian
channel described in section VI below,
none of the sanctions relief outlined in
this guidance may involve a U.S.
person, or, as applicable, a foreign entity
owned or controlled by a U.S. person,2
if otherwise prohibited under any
sanctions program administered by the
USG.
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I. Sanctions Related to Iran’s Export of
Petrochemical Products
The JPOA provides for the temporary
suspension of U.S. sanctions on ‘‘Iran’s
petrochemical exports, as well as
sanctions on any associated services.’’
To implement this provision of the
JPOA during the Extended JPOA Period,
1 Insurance payments for claims arising from
incidents that occur during the JPOA Period and/
or the Extended JPOA Period may be paid after
November 24, 2014, so long as the underlying
transactions and activities conform to all others
aspects of the sanctions remaining in place and the
terms of the sanctions relief provided by the JPOA.
Insurance and reinsurance companies should
contact the USG directly with any inquiries. U.S.
persons and U.S.-owned or -controlled foreign
entities remain prohibited from participating in the
provision of insurance or reinsurance services to or
for the benefit of Iran or sanctioned entities,
including with respect to all elements of the
sanctions relief provided pursuant to the JPOA,
unless specifically authorized by OFAC.
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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the USG will continue to take the
following steps to allow for the export
of petrochemical products from Iran, as
well as associated services, by non-U.S.
persons not otherwise subject to section
560.215 of the Iranian Transactions and
Sanctions Regulations, 31 CFR part 560
(ITSR), (hereinafter ‘‘non-U.S. persons
not otherwise subject to the ITSR’’):
1. Correspondent or Payable-Through
Account Sanctions: The USG will not
impose correspondent or 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 and/or the
Extended JPOA Period by non-U.S.
persons not otherwise subject to the
ITSR for exports of petrochemical
products 3 from Iran that are initiated
and completed entirely within the JPOA
Period and/or the Extended JPOA
Period, including transactions involving
the petrochemical companies listed in
the Annex to this guidance, provided
that the transactions do not involve
persons on the SDN List other than the
petrochemical companies listed in the
Annex to this guidance or any Iranian
depository institutions 4 listed solely
pursuant to E.O. 13599.
2. Blocking Sanctions: The USG will
not impose blocking sanctions under
section 2(a)(i)–(ii) of E.O. 13645 with
respect to persons that, exclusively
during the JPOA Period and/or the
Extended JPOA Period, materially assist,
sponsor, or provide financial, material,
or technological support for, or goods or
services to or in support of, the
3 For purposes of this guidance, the USG is
interpreting the term ‘‘petrochemicals,’’ as used in
the JPOA, as having the meaning given to the term
‘‘petrochemical products’’ in, inter alia, section
10(m) of E.O. 13622; therefore, the term includes
any aromatic, olefin, and synthesis gas, and any of
their derivatives, including ethylene, propylene,
butadiene, benzene, toluene, xylene, ammonia,
methanol, and urea. For further information on
what products are considered to fall within this
definition of ‘‘petrochemical products’’ see the
November 13, 2012 State Department Sanctions
Information and Guidance, 77 Fed. Reg. 67726–
67731.
4 For purposes of this guidance, as defined in
section 14(g) of E.O. 13645, the term ‘‘Iranian
depository institution’’ means any entity (including
foreign branches), wherever located, organized
under the laws of Iran or any jurisdiction within
Iran, or owned or controlled by the Government of
Iran, or in Iran, or owned or controlled by any of
the foregoing, that is engaged primarily in the
business of banking (for example, banks, savings
banks, savings associations, credit unions, trust
companies, and bank holding companies).
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petrochemical companies listed in the
Annex to this guidance for exports of
petrochemical products from Iran that
are initiated and completed entirely
within the JPOA Period and/or the
Extended JPOA Period, provided that
the activities do not involve persons on
the SDN List other than the
petrochemical companies listed in the
Annex to this guidance or any Iranian
depository institutions listed solely
pursuant to E.O. 13599.
3. Menu-based Sanctions: 5 The USG
will not impose sanctions under section
2(a)(ii) of E.O. 13622 (as amended by
section 16(d) of E.O. 13645) on non-U.S.
persons not otherwise subject to the
ITSR who engage in transactions
exclusively during the JPOA Period
and/or the Extended JPOA Period for
exports of petrochemical products from
Iran that are initiated and completed
entirely within the JPOA Period and/or
the Extended JPOA Period, including
transactions involving the
petrochemical companies listed in the
Annex to this guidance, provided that
the activities do not involve persons on
the SDN List other than the
petrochemical companies listed in the
Annex to this guidance or any Iranian
depository institutions listed solely
pursuant to E.O. 13599.
In addition, please see section VII
below, which describes the exercise of
certain waiver authorities relevant to the
activities and transactions described in
this section.
II. Sanctions Related to Iran’s Auto
Industry
The JPOA provides for the temporary
suspension of U.S. sanctions on ‘‘Iran’s
auto industry, as well as sanctions on
associated services.’’ To implement this
provision during the Extended JPOA
Period, the USG will continue to take
the following steps to allow for the sale,
supply, or transfer to Iran of significant
goods or services used in connection
with the automotive sector of Iran, as
well as the provision of associated
services by non-U.S. persons not
otherwise subject to the ITSR:
1. Correspondent or Payable-through
Account Sanctions: The USG will not
impose correspondent or payablethrough account sanctions under section
3(a)(ii) of E.O. 13645 with respect to
foreign financial institutions that,
exclusively during the JPOA Period
and/or the Extended JPOA Period,
knowingly conduct or facilitate
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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financial transactions for the sale,
supply, or transfer to Iran of significant
goods or services used in connection
with the automotive sector of Iran that
are initiated and completed entirely
within the JPOA Period and/or the
Extended JPOA Period, provided that
the transactions do not involve persons
on the SDN List other than any Iranian
depository institutions listed solely
pursuant to E.O. 13599.
2. Menu-based Sanctions: The USG
will not impose sanctions described in
sections 6 and 7 of E.O. 13645 with
respect to persons that, as described in
section 5(a) of E.O. 13645, knowingly
engage in transactions for the sale,
supply, or transfer to Iran of significant
goods or services used in connection
with the automotive sector of Iran that
are initiated and completed entirely
within the JPOA Period and/or the
Extended JPOA Period, provided that
the transactions do not involve persons
on the SDN List other than any Iranian
depository institutions listed solely
pursuant to E.O. 13599.
In addition, please see section VII
below, which describes the exercise of
certain waiver authorities relevant to the
activities and transactions described in
this section.
III. Sanctions Related to Gold and
Other Precious Metals
The JPOA provides for the temporary
suspension of U.S. sanctions on ‘‘gold
and precious metals, as well as
sanctions on associated services.’’ To
implement this provision of the JPOA
during the Extended JPOA Period, the
USG will continue to take the following
steps to allow for the sale of gold and
other precious metals to or from Iran, as
well as the provision of associated
services, by non-U.S. persons not
otherwise subject to the ITSR:
1. Correspondent or Payable-through
Account Sanctions: The USG will not
impose correspondent or payablethrough account sanctions under section
3(a)(i) of E.O. 13645 with respect to
foreign financial institutions that,
exclusively during the JPOA Period
and/or the Extended JPOA Period,
conduct or facilitate transactions by
non-U.S. persons not otherwise subject
to the ITSR for the purchase or
acquisition of precious metals to or from
Iran that are initiated and completed
entirely within the JPOA Period and/or
the Extended JPOA Period, provided
that the funds for these purchases of
gold and other precious metals may not
be drawn from Restricted Funds, and
further provided that the transactions do
not involve persons on the SDN List
other than any political subdivision,
agency, or instrumentality of the
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Government of Iran listed solely
pursuant to E.O. 13599 or any Iranian
depository institutions listed solely
pursuant to E.O. 13599.
2. Blocking Sanctions: The USG will
not impose blocking sanctions under
section 5(a) of E.O. 13622; sections
2(a)(i)–(ii) of E.O. 13645; and section
560.211(c)(2) of the ITSR, with respect
to persons that, exclusively during the
JPOA Period and/or the Extended JPOA
Period, materially assist, sponsor, or
provide financial, material, or
technological support for, or goods or
services in support of, the purchase or
acquisition of precious metals to or from
Iran or by the Government of Iran if
such activities are initiated and
completed entirely within the JPOA
Period and/or the Extended JPOA
Period, provided that the funds for these
purchases of gold and other precious
metals are not drawn from Restricted
Funds,6 and further provided that the
transactions do not involve persons on
the SDN List other than any political
subdivision, agency, or instrumentality
of the Government of Iran listed solely
pursuant to E.O. 13599 or any Iranian
depository institutions listed solely
pursuant to E.O. 13599.
In addition, please see section VII
below, which describes the exercise of
certain waiver authorities relevant to the
activities and transactions described in
this section.
IV. Sanctions Related to Civil Aviation
The JPOA provides for the temporary
licensing of ‘‘the supply and installation
in Iran of spare parts for safety of flight
for Iranian civil aviation and associated
services. License safety related
inspections and repairs in Iran as well
as associated services.’’ To implement
this provision during the Extended
JPOA Period, the USG will continue to
take the following steps:
1. Statement of Licensing Policy:
OFAC is issuing an Amended Statement
of Licensing Policy on Activities Related
to the Safety of Iran’s Civil Aviation
Industry (Amended SLP) to extend the
date of the previously-issued policy to
the end of the Extended JPOA Period.
The Amended SLP will establish,
during the JPOA Period and the
Extended JPOA Period, a favorable
licensing policy regime under which
U.S. persons, U.S.-owned or -controlled
foreign entities, and non-U.S. persons
involved in the export of U.S.-origin
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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goods can request specific authorization
from OFAC to engage in transactions
that are initiated and completed entirely
within the JPOA Period and/or the
Extended JPOA Period to ensure the safe
operation of Iranian commercial
passenger aircraft, including
transactions involving Iran Air.
2. Correspondent or Payable-Through
Account Sanctions: The USG will not
impose correspondent or 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 and/or the
Extended JPOA Period, conduct or
facilitate financial transactions relating
to the type of activities covered by the
Amended SLP that are conducted on
behalf of non-U.S. persons not
otherwise subject to the ITSR, provided
such activities are initiated and
completed entirely within the JPOA
Period and/or the Extended JPOA
Period, and further provided that the
transactions do not involve persons on
the SDN List other than Iran Air or any
Iranian depository institutions listed
solely pursuant to E.O. 13599.
3. Blocking Sanctions: The USG will
not impose blocking sanctions under
section 1(a)(iii) of E.O. 13382; sections
2(a)(i)–(ii) of E.O. 13645; and section
544.201(a)(3) of the Weapons of the
Mass Destruction Proliferators Sanctions
Regulations, 31 CFR part 544
(WMDPSR), with respect to persons
that, exclusively during the JPOA Period
and/or the Extended JPOA Period,
materially assist, sponsor, or provide
financial, material, or technological
support for, or goods or services to or in
support of, Iran Air in connection with
activities intended to ensure the safe
operation of Iranian commercial
passenger aircraft, provided such
activities are outlined in the JPOA and
are initiated and completed entirely
within the JPOA Period and/or the
Extended JPOA Period and do not
involve persons on the SDN List other
than Iran Air or any Iranian depository
institutions listed solely pursuant to
E.O. 13599.
In addition, please see Section VII
below, which describes the exercise of
certain waiver authorities relevant to the
activities and transactions described in
this section.
V. Sanctions Related to Iran’s Export of
Crude Oil
The JPOA provides for certain
sanctions relief related to Iran’s crude
oil sales. Under the JPOA, the USG will
‘‘pause efforts to further reduce Iran’s
crude oil sales, enabling Iran’s current
customers to purchase their current
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average amounts of crude oil. Enable
the repatriation of an agreed amount of
revenue held abroad. For such oil sales,
suspend U.S. sanctions on associated
insurance and transportation services.’’
To implement this provision of the
JPOA during the Extended JPOA Period,
the USG will continue to take the
following steps to allow for China,
India, Japan, the Republic of Korea,
Taiwan, and Turkey to maintain their
current average level of imports from
Iran during the JPOA Period and the
Extended JPOA Period and to render
non-sanctionable a limited number of
transactions for the release in
installments of an agreed amount of
revenue to Iran for receipt at
participating foreign financial
institutions in selected jurisdictions:
1. Correspondent or Payable-Through
Account Sanctions: The USG will not
impose correspondent or 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; and
sections 561.201(a)(5), 561.204(a), and
561.204(b)(1)–(2) of the IFSR with
respect to foreign financial institutions
that conduct or facilitate transactions
exclusively during the JPOA Period
and/or the Extended JPOA Period by
non-U.S. persons not otherwise subject
to the ITSR for exports of petroleum and
petroleum products from Iran to China,
India, Japan, the Republic of Korea,
Taiwan, or Turkey, and associated
insurance 7 and transportation services,
that are initiated and completed entirely
within the JPOA Period and/or the
Extended JPOA Period, including
transactions involving the National
Iranian Oil Company (NIOC) or the
National Iranian Tanker Company
(NITC), provided that the transactions
do not involve persons on the SDN List
other than NIOC, NITC, or any Iranian
depository institutions listed solely
pursuant to E.O. 13599.8
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
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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ITSR that, exclusively during the JPOA
Period and/or the Extended JPOA
Period, materially assist, sponsor, or
provide financial, material, or
technological support for, or goods or
services in support of, exports of
petroleum and petroleum products from
Iran to China, India, Japan, the Republic
of Korea, Taiwan, or Turkey, and
associated insurance 9 and
transportation services, including for
activities involving NIOC or NITC,
provided such activities are initiated
and completed entirely within the JPOA
Period and/or the Extended JPOA
Period, and further provided that the
activities do not involve persons on the
SDN List other than NIOC, NITC, or any
Iranian depository institutions listed
solely pursuant to E.O. 13599.
3. Menu-Based Sanctions: The USG
will not impose sanctions under section
2(a)(i) of E.O. 13622 (as amended by
section 16(c) of E.O. 13645) on non-U.S.
persons not otherwise subject to the
ITSR who engage in transactions
exclusively during the JPOA Period
and/or the Extended JPOA Period for
exports of petroleum and petroleum
products from Iran to China, India,
Japan, the Republic of Korea, Taiwan, or
Turkey, and associated insurance 10 and
transportation services, including
transactions involving NIOC or NITC,
provided such activities are initiated
and completed entirely within the JPOA
Period and/or the Extended JPOA
Period, and further provided that the
activities do not involve persons on the
SDN List other than NIOC, NITC, or any
Iranian depository institutions listed
solely pursuant to E.O. 13599.
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.’’
9 See footnote 1 above for additional information
regarding associated insurance payments.
10 See footnote 1 above for additional information
regarding associated insurance payments.
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Sfmt 4703
In furtherance of the JPOA, the P5+1
and Iran established mechanisms to
further facilitate the purchase of, and
payment for, the export of food,
agricultural commodities, medicine, and
medical devices to Iran, as well as to
facilitate Iran’s payments of UN
obligations, Iran’s payments for medical
expenses incurred abroad by Iranian
citizens, and Iran’s payments of an
agreed amount of governmental tuition
assistance for Iranian students studying
abroad. The mechanisms will remain in
place during the Extended JPOA Period.
Foreign financial institutions whose
involvement in hosting these new
mechanisms was sought by Iran have
been contacted directly by the U.S.
Department of the Treasury and
provided specific guidance.
Please note that the JPOA-related
mechanism for humanitarian trade
transactions is not the exclusive way to
finance or facilitate the sale of food,
agricultural commodities, medicine, and
medical devices to Iran by non-U.S.
persons not otherwise subject to the
ITSR, which is not generally
sanctionable so long as the transaction
does not involve persons designated in
connection with Iran’s support for
international terrorism or Iran’s
proliferation of weapons of mass
destruction (WMD) or WMD delivery
systems. Therefore, transactions for the
export of food, agricultural
commodities, medicine, and medical
devices to Iran generally may be
processed pursuant to pre-existing
exceptions and are not required to be
processed through the new mechanism.
In addition, please see Section VII
below, which describes the exercise of
certain waiver authorities relevant to the
activities and transactions described in
this section.
VII. Waivers
To enable the implementation during
the Extended JPOA Period of the
sanctions relief outlined in the JPOA
and described in detail in sections I
through VI of this guidance, the USG
has renewed, as needed, limited waivers
of sanctions under: Section 1245(d)(1) of
the National Defense Authorization Act
for Fiscal Year 2012 (NDAA) in
connection with exports of crude oil
from Iran to China, India, Japan, the
Republic of Korea, Taiwan, and Turkey
and for transactions related to the
release in installments of an agreed
amount of revenues to Iran for receipt at
participating foreign financial
institutions in selected jurisdictions and
the establishment of the financial
channel provided for in the JPOA;
section 302(a) of the Iran Threat
Reduction and Syria Human Rights Act
E:\FR\FM\04AUN1.SGM
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tkelley on DSK3SPTVN1PROD with NOTICES
Federal Register / Vol. 79, No. 149 / Monday, August 4, 2014 / Notices
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 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
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
VerDate Mar<15>2010
17:28 Aug 01, 2014
Jkt 232001
petrochemical products, excluding any
transactions involving persons on the
SDN List other than the petrochemical
companies listed in the Annex to this
guidance; (iii) the sale of precious
metals to or from Iran, excluding any
transactions involving persons on the
SDN List other than any political
subdivision, agency, or instrumentality
of the Government of Iran listed solely
pursuant to E.O. 13599; (iv) the sale,
supply, or transfer to Iran of goods and
services used in connection with the
automotive sector of Iran, excluding any
transactions involving persons on the
SDN List; and (v) the supply and
installation of spare parts necessary for
the safety of Iranian civil aviation flights
and for safety-related inspections and
repairs in Iran, excluding any
transactions involving persons on the
SDN List other than Iran Air.
5. 1247(a)—to the extent required for
transactions by foreign financial
institutions on behalf of: (i) NIOC and
NITC related to Iran’s exports of crude
oil to China, India, Japan, the Republic
of Korea, Taiwan, and Turkey; (ii) the
entities listed in the Annex to this
guidance for the export of petrochemical
products from Iran; (iii) any political
subdivision, agency, or instrumentality
of the Government of Iran on the SDN
List solely pursuant to E.O. 13599 for
the sale of precious metals to or from
Iran; and (iv) Iran Air for the supply and
installation of spare parts necessary for
the safety of Iranian civil aviation flights
and for safety-related inspections and
repairs in Iran.
Annex
1. Bandar Imam Petrochemical
Company;
2. Bou Ali Sina Petrochemical
Company;
3. Ghaed Bassir Petrochemical
Products Company;
4. Iran Petrochemical Commercial
Company;
5. Jam Petrochemical Company;
6. Marjan Petrochemical Company;
7. Mobin Petrochemical Company;
8. National Petrochemical Company;
9. Nouri Petrochemical Company;
10. Pars Petrochemical Company;
11. Sadaf Petrochemical Assaluyeh
Company;
12. Shahid Tondgooyan;
Petrochemical Company;
13. Shazand Petrochemical Company;
and
14. Tabriz Petrochemical Company.
Issued: July 21, 2014.
Dated: July 29, 2014.
Adam J. Szubin,
Director, Office of Foreign Assets Control.
[FR Doc. 2014–18315 Filed 8–1–14; 8:45 am]
BILLING CODE 4810–AL–P
PO 00000
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45237
DEPARTMENT OF THE TREASURY
Internal Revenue Service
Proposed Collection; Comment
Request for Revenue Procedure 2002–
23
Internal Revenue Service (IRS),
Treasury.
SUMMARY: The Department of the
Treasury, as part of its continuing effort
to reduce paperwork and respondent
burden, invites the general public and
other Federal agencies to take this
opportunity to comment on proposed
and/or continuing information
collections, as required by the
Paperwork Reduction Act of 1995,
Public Law 104–13 (44 U.S.C.
3506(c)(2)(A)). Currently, the IRS is
soliciting comments concerning
Revenue Procedure 2002–23, Taxation
of Canadian Retirement Plans Under
U.S.-Canada Income Tax Treaty.
DATES: Written comments should be
received on or before October 3, 2014 to
be assured of consideration.
ADDRESSES: Direct all written comments
to R. Joseph Durbala, Internal Revenue
Service, Room 6129, 1111 Constitution
Avenue NW., Washington, DC 20224.
FOR FURTHER INFORMATION CONTACT:
Requests for additional information or
copies of the revenue procedure should
be directed to LaNita Van Dyke, Internal
Revenue Service, Room 6517, 1111
Constitution Avenue NW., Washington,
DC 20224, or through the internet at
Lanita.VanDyke@irs.gov.
SUPPLEMENTARY INFORMATION:
Title: Taxation of Canadian
Retirement Plans Under U.S.-Canada
Income Tax Treaty.
OMB Number: 1545–1773.
Revenue Procedure Number: Revenue
Procedure 2002–23.
Abstract: Revenue Procedure 2002–23
provides guidance for the application by
U.S. citizens and residents of the U.S.Canada Income Tax Treaty, as amended
by the 1995 protocol, in order to defer
U.S. Income taxes on income accrued in
certain Canadian retirement plans.
Current Actions: There are no changes
being made to the revenue procedure at
this time.
Type of Review: Extension of a
currently approved collection.
Affected Public: Individuals or
households.
Estimated Number of Respondents:
20,000.
Estimated Average Time per
Respondent: 30 minutes.
Estimated Total Annual Reporting
Hours: 10,000.
AGENCY:
E:\FR\FM\04AUN1.SGM
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]]>Agencies
[Federal Register Volume 79, Number 149 (Monday, August 4, 2014)]
[Notices]
[Pages 45233-45237]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-18315]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
Publication of Guidance Relating to the Provision of Certain
Temporary Sanctions Relief, as Extended
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Notice, publication of guidance.
-----------------------------------------------------------------------
SUMMARY: The Department of the Treasury's Office of Foreign Assets
Control (OFAC) is publishing Guidance Relating to the Provision of
Certain Temporary Sanctions Relief in Order to Implement the Joint Plan
Of Action (JPOA) Reached on November 24, 2013, between the P5 + 1 and
the Islamic Republic of Iran, as Extended Through November 24, 2014
(Guidance).
DATES: Effective Date: July 21, 2014.
FOR FURTHER INFORMATION CONTACT: Assistant Director for Licensing,
tel.: 202-622-2480, Assistant Director for Policy, tel.: 202-622-2402,
Assistant Director for Regulatory Affairs, tel.: 202-622-4855,
Assistant Director for Sanctions Compliance & Evaluation, tel.: 202-
622-2490, Office of Foreign Assets Control, or Chief Counsel (Foreign
Assets Control), tel.: 202-622-2410, Office of the General Counsel,
Department of the Treasury (not toll free numbers).
SUPPLEMENTARY INFORMATION:
Electronic and Facsimile Availability
This document and additional information concerning OFAC are
available from OFAC's Web site (www.treasury.gov/ofac). Certain general
information pertaining to OFAC's sanctions programs also is available
via facsimile through a 24-hour fax-on-demand service, tel.: 202-622-
0077.
Background
On November 24, 2013, the United States and its partners in the P5
+ 1 (China, France, Germany, Russia, the United Kingdom, and the United
States, coordinated by the European Union's High Representative)
reached an initial understanding with Iran, outlined in the JPOA, that
halts progress on Iran's nuclear program and rolls it back in key
respects. In return for Iran's commitment to place meaningful limits on
its nuclear program, the P5 + 1 committed to provide Iran with limited,
targeted, and reversible sanctions relief for a six-month period,
renewable by mutual consent. In furtherance of the United States
Government's (USG's) commitments under the JPOA, the U.S. Department of
State and the U.S. Department of the Treasury implemented sanctions
relief relating to certain activities and associated services taking
place exclusively during the six-month period beginning on January 20,
2014, and ending July 20, 2014 (the JPOA Period).
The JPOA was renewed by mutual consent of the P5 + 1 and Iran on
July 19, 2014, extending the temporary sanctions relief provided under
the JPOA to cover the period beginning on July 21, 2014, and ending
November 24, 2014 (the Extended JPOA Period), in order to continue to
negotiate a long-term comprehensive solution to ensure that Iran's
nuclear program will be exclusively peaceful. During the Extended JPOA
Period, the sanctions relief the USG committed to during the JPOA will
be continued, as set out in the Guidance. The USG retains the authority
to revoke this limited sanctions relief at any time if Iran fails to
meet its commitments under the JPOA.
The Department of State and the Department of the Treasury jointly
issued the updated Guidance on July 21, 2014. At the time of its
issuance on July 21, 2014, OFAC made the Guidance available on the OFAC
Web site: www.treasury.gov/ofac and the Department of State made the
Guidance available on its Web site: www.state.gov. With this notice,
OFAC is publishing the Guidance in the Federal Register.
Guidance
U.S. Department of the Treasury
U.S. Department of State
Guidance Relating to the Provision of Certain Temporary Sanctions
Relief in Order To Implement the Joint Plan of Action Reached on
November 24, 2013, Between the P5 + 1 and the Islamic Republic of Iran,
as Extended Through November 24, 2014
On November 24, 2013, the United States and its partners in the P5
+ 1 (China, France, Germany, Russia, the United Kingdom, and the United
States, coordinated by the European Union's High Representative)
reached an initial understanding with Iran, outlined in a Joint Plan of
Action (JPOA), that halts progress on Iran's nuclear program and rolls
it back in key respects. In return for Iran's commitment to place
meaningful limits on its nuclear program, the P5 + 1 committed to
provide Iran with limited, targeted, and reversible sanctions relief
for a six-month period, renewable by mutual consent. In furtherance of
the U.S. Government's (USG) commitments under the JPOA, the U.S.
Department of State and the U.S. Department of the Treasury implemented
sanctions relief relating to certain activities and associated services
taking place exclusively during the six-month period beginning on
January 20, 2014, and ending July 20, 2014 (the JPOA Period).
The JPOA was renewed by mutual consent of the P5 + 1 and Iran on
July 19, 2014, extending the temporary sanctions relief provided under
the JPOA to cover the period beginning on July 21, 2014, and ending
November 24, 2014 (the Extended JPOA Period), in order to continue to
negotiate a long-term comprehensive solution to ensure that Iran's
nuclear program will be exclusively peaceful. During the Extended JPOA
Period, the sanctions relief the USG committed to during the JPOA will
be continued, as set out below. The USG retains the authority to revoke
this limited sanctions relief at any time if Iran fails to meet its
commitments under the JPOA.
For purposes of the JPOA sanctions relief, the USG interprets the
term ``associated service'' to mean any necessary service--including
any insurance, transportation, or financial service--ordinarily
incident to the underlying activity covered by the JPOA, provided,
however, that unless otherwise noted, such services may not involve
persons identified on the Department of the Treasury's Office of
Foreign Assets Control's (OFAC) List of
[[Page 45234]]
Specially Designated Nationals and Blocked Persons (SDN List).\1\
---------------------------------------------------------------------------
\1\ Insurance payments for claims arising from incidents that
occur during the JPOA Period and/or the Extended JPOA Period may be
paid after November 24, 2014, so long as the underlying transactions
and activities conform to all others aspects of the sanctions
remaining in place and the terms of the sanctions relief provided by
the JPOA. Insurance and reinsurance companies should contact the USG
directly with any inquiries. U.S. persons and U.S.-owned or -
controlled foreign entities remain prohibited from participating in
the provision of insurance or reinsurance services to or for the
benefit of Iran or sanctioned entities, including with respect to
all elements of the sanctions relief provided pursuant to the JPOA,
unless specifically authorized by OFAC.
---------------------------------------------------------------------------
The USG retains the authority to continue imposing sanctions under
the authorities identified below during the Extended JPOA Period for
activities that occurred prior to January 20, 2014. Moreover, the USG
retains the authority to impose sanctions under the authorities
outlined below for activities occurring during the JPOA Period and/or
the Extended JPOA Period to the extent such activities are materially
inconsistent with sanctions relief described in the JPOA and outlined
in this guidance. The USG also retains the authority to continue
imposing sanctions during the Extended JPOA Period for activities
occurring before and during the JPOA Period and the Extended JPOA
Period under other authorities, such as those used to combat terrorism
and the proliferation of weapons of mass destruction. During the
Extended JPOA Period, the USG will continue to vigorously enforce our
sanctions against Iran, including by taking action against those who
seek to evade or circumvent our sanctions.
Please note that, with the exception of civil aviation activities
described in section IV and the humanitarian channel described in
section VI below, none of the sanctions relief outlined in this
guidance may involve a U.S. person, or, as applicable, a foreign entity
owned or controlled by a U.S. person,\2\ if otherwise prohibited under
any sanctions program administered by the USG.
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
I. Sanctions Related to Iran's Export of Petrochemical Products
The JPOA provides for the temporary suspension of U.S. sanctions on
``Iran's petrochemical exports, as well as sanctions on any associated
services.'' To implement this provision of the JPOA during the Extended
JPOA Period, the USG will continue to take the following steps to allow
for the export of petrochemical products from Iran, as well as
associated services, by non-U.S. persons not otherwise subject to
section 560.215 of the Iranian Transactions and Sanctions Regulations,
31 CFR part 560 (ITSR), (hereinafter ``non-U.S. persons not otherwise
subject to the ITSR''):
1. Correspondent or Payable-Through Account Sanctions: The USG will
not impose correspondent or payable-through account sanctions under
section 1(a)(iii) of Executive Order (E.O.) 13622 (as amended by
section 16(b) of E.O. 13645); section 3(a)(i) of E.O. 13645; and
sections 561.204(a) and 561.204(b)(3) of the Iranian Financial
Sanctions Regulations, 31 CFR part 561 (IFSR), on foreign financial
institutions that conduct or facilitate transactions that are initiated
and completed entirely within the JPOA Period and/or the Extended JPOA
Period by non-U.S. persons not otherwise subject to the ITSR for
exports of petrochemical products \3\ from Iran that are initiated and
completed entirely within the JPOA Period and/or the Extended JPOA
Period, including transactions involving the petrochemical companies
listed in the Annex to this guidance, provided that the transactions do
not involve persons on the SDN List other than the petrochemical
companies listed in the Annex to this guidance or any Iranian
depository institutions \4\ listed solely pursuant to E.O. 13599.
---------------------------------------------------------------------------
\3\ For purposes of this guidance, the USG is interpreting the
term ``petrochemicals,'' as used in the JPOA, as having the meaning
given to the term ``petrochemical products'' in, inter alia, section
10(m) of E.O. 13622; therefore, the term includes any aromatic,
olefin, and synthesis gas, and any of their derivatives, including
ethylene, propylene, butadiene, benzene, toluene, xylene, ammonia,
methanol, and urea. For further information on what products are
considered to fall within this definition of ``petrochemical
products'' see the November 13, 2012 State Department Sanctions
Information and Guidance, 77 Fed. Reg. 67726-67731.
\4\ For purposes of this guidance, as defined in section 14(g)
of E.O. 13645, the term ``Iranian depository institution'' means any
entity (including foreign branches), wherever located, organized
under the laws of Iran or any jurisdiction within Iran, or owned or
controlled by the Government of Iran, or in Iran, or owned or
controlled by any of the foregoing, that is engaged primarily in the
business of banking (for example, banks, savings banks, savings
associations, credit unions, trust companies, and bank holding
companies).
---------------------------------------------------------------------------
2. Blocking Sanctions: The USG will not impose blocking sanctions
under section 2(a)(i)-(ii) of E.O. 13645 with respect to persons that,
exclusively during the JPOA Period and/or the Extended JPOA Period,
materially assist, sponsor, or provide financial, material, or
technological support for, or goods or services to or in support of,
the petrochemical companies listed in the Annex to this guidance for
exports of petrochemical products from Iran that are initiated and
completed entirely within the JPOA Period and/or the Extended JPOA
Period, provided that the activities do not involve persons on the SDN
List other than the petrochemical companies listed in the Annex to this
guidance or any Iranian depository institutions listed solely pursuant
to E.O. 13599.
3. Menu-based Sanctions: \5\ The USG will not impose sanctions
under section 2(a)(ii) of E.O. 13622 (as amended by section 16(d) of
E.O. 13645) on non-U.S. persons not otherwise subject to the ITSR who
engage in transactions exclusively during the JPOA Period and/or the
Extended JPOA Period for exports of petrochemical products from Iran
that are initiated and completed entirely within the JPOA Period and/or
the Extended JPOA Period, including transactions involving the
petrochemical companies listed in the Annex to this guidance, provided
that the activities do not involve persons on the SDN List other than
the petrochemical companies listed in the Annex to this guidance or any
Iranian depository institutions listed solely pursuant to E.O. 13599.
---------------------------------------------------------------------------
\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.''
---------------------------------------------------------------------------
In addition, please see section VII below, which describes the
exercise of certain waiver authorities relevant to the activities and
transactions described in this section.
II. Sanctions Related to Iran's Auto Industry
The JPOA provides for the temporary suspension of U.S. sanctions on
``Iran's auto industry, as well as sanctions on associated services.''
To implement this provision during the Extended JPOA Period, the USG
will continue to take the following steps to allow for the sale,
supply, or transfer to Iran of significant goods or services used in
connection with the automotive sector of Iran, as well as the provision
of associated services by non-U.S. persons not otherwise subject to the
ITSR:
1. Correspondent or Payable-through Account Sanctions: The USG will
not impose correspondent or payable-through account sanctions under
section 3(a)(ii) of E.O. 13645 with respect to foreign financial
institutions that, exclusively during the JPOA Period and/or the
Extended JPOA Period, knowingly conduct or facilitate
[[Page 45235]]
financial transactions for the sale, supply, or transfer to Iran of
significant goods or services used in connection with the automotive
sector of Iran that are initiated and completed entirely within the
JPOA Period and/or the Extended JPOA Period, provided that the
transactions do not involve persons on the SDN List other than any
Iranian depository institutions listed solely pursuant to E.O. 13599.
2. Menu-based Sanctions: The USG will not impose sanctions
described in sections 6 and 7 of E.O. 13645 with respect to persons
that, as described in section 5(a) of E.O. 13645, knowingly engage in
transactions for the sale, supply, or transfer to Iran of significant
goods or services used in connection with the automotive sector of Iran
that are initiated and completed entirely within the JPOA Period and/or
the Extended JPOA Period, provided that the transactions do not involve
persons on the SDN List other than any Iranian depository institutions
listed solely pursuant to E.O. 13599.
In addition, please see section VII below, which describes the
exercise of certain waiver authorities relevant to the activities and
transactions described in this section.
III. Sanctions Related to Gold and Other Precious Metals
The JPOA provides for the temporary suspension of U.S. sanctions on
``gold and precious metals, as well as sanctions on associated
services.'' To implement this provision of the JPOA during the Extended
JPOA Period, the USG will continue to take the following steps to allow
for the sale of gold and other precious metals to or from Iran, as well
as the provision of associated services, by non-U.S. persons not
otherwise subject to the ITSR:
1. Correspondent or Payable-through Account Sanctions: The USG will
not impose correspondent or payable-through account sanctions under
section 3(a)(i) of E.O. 13645 with respect to foreign financial
institutions that, exclusively during the JPOA Period and/or the
Extended JPOA Period, conduct or facilitate transactions by non-U.S.
persons not otherwise subject to the ITSR for the purchase or
acquisition of precious metals to or from Iran that are initiated and
completed entirely within the JPOA Period and/or the Extended JPOA
Period, provided that the funds for these purchases of gold and other
precious metals may not be drawn from Restricted Funds, and further
provided that the transactions do not involve persons on the SDN List
other than any political subdivision, agency, or instrumentality of the
Government of Iran listed solely pursuant to E.O. 13599 or any Iranian
depository institutions listed solely pursuant to E.O. 13599.
2. Blocking Sanctions: The USG will not impose blocking sanctions
under section 5(a) of E.O. 13622; sections 2(a)(i)-(ii) of E.O. 13645;
and section 560.211(c)(2) of the ITSR, with respect to persons that,
exclusively during the JPOA Period and/or the Extended JPOA Period,
materially assist, sponsor, or provide financial, material, or
technological support for, or goods or services in support of, the
purchase or acquisition of precious metals to or from Iran or by the
Government of Iran if such activities are initiated and completed
entirely within the JPOA Period and/or the Extended JPOA Period,
provided that the funds for these purchases of gold and other precious
metals are not drawn from Restricted Funds,\6\ and further provided
that the transactions do not involve persons on the SDN List other than
any political subdivision, agency, or instrumentality of the Government
of Iran listed solely pursuant to E.O. 13599 or any Iranian depository
institutions listed solely pursuant to E.O. 13599.
---------------------------------------------------------------------------
\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.
---------------------------------------------------------------------------
In addition, please see section VII below, which describes the
exercise of certain waiver authorities relevant to the activities and
transactions described in this section.
IV. Sanctions Related to Civil Aviation
The JPOA provides for the temporary licensing of ``the supply and
installation in Iran of spare parts for safety of flight for Iranian
civil aviation and associated services. License safety related
inspections and repairs in Iran as well as associated services.'' To
implement this provision during the Extended JPOA Period, the USG will
continue to take the following steps:
1. Statement of Licensing Policy: OFAC is issuing an Amended
Statement of Licensing Policy on Activities Related to the Safety of
Iran's Civil Aviation Industry (Amended SLP) to extend the date of the
previously-issued policy to the end of the Extended JPOA Period. The
Amended SLP will establish, during the JPOA Period and the Extended
JPOA Period, a favorable licensing policy regime under which U.S.
persons, U.S.-owned or -controlled foreign entities, and non-U.S.
persons involved in the export of U.S.-origin goods can request
specific authorization from OFAC to engage in transactions that are
initiated and completed entirely within the JPOA Period and/or the
Extended JPOA Period to ensure the safe operation of Iranian commercial
passenger aircraft, including transactions involving Iran Air.
2. Correspondent or Payable-Through Account Sanctions: The USG will
not impose correspondent or payable-through account sanctions under
section 3(a)(i) of E.O. 13645 and section 561.201(a)(5)(ii) of the IFSR
on foreign financial institutions that, exclusively during the JPOA
Period and/or the Extended JPOA Period, conduct or facilitate financial
transactions relating to the type of activities covered by the Amended
SLP that are conducted on behalf of non-U.S. persons not otherwise
subject to the ITSR, provided such activities are initiated and
completed entirely within the JPOA Period and/or the Extended JPOA
Period, and further provided that the transactions do not involve
persons on the SDN List other than Iran Air or any Iranian depository
institutions listed solely pursuant to E.O. 13599.
3. Blocking Sanctions: The USG will not impose blocking sanctions
under section 1(a)(iii) of E.O. 13382; sections 2(a)(i)-(ii) of E.O.
13645; and section 544.201(a)(3) of the Weapons of the Mass Destruction
Proliferators Sanctions Regulations, 31 CFR part 544 (WMDPSR), with
respect to persons that, exclusively during the JPOA Period and/or the
Extended JPOA Period, materially assist, sponsor, or provide financial,
material, or technological support for, or goods or services to or in
support of, Iran Air in connection with activities intended to ensure
the safe operation of Iranian commercial passenger aircraft, provided
such activities are outlined in the JPOA and are initiated and
completed entirely within the JPOA Period and/or the Extended JPOA
Period and do not involve persons on the SDN List other than Iran Air
or any Iranian depository institutions listed solely pursuant to E.O.
13599.
In addition, please see Section VII below, which describes the
exercise of certain waiver authorities relevant to the activities and
transactions described in this section.
V. Sanctions Related to Iran's Export of Crude Oil
The JPOA provides for certain sanctions relief related to Iran's
crude oil sales. Under the JPOA, the USG will ``pause efforts to
further reduce Iran's crude oil sales, enabling Iran's current
customers to purchase their current
[[Page 45236]]
average amounts of crude oil. Enable the repatriation of an agreed
amount of revenue held abroad. For such oil sales, suspend U.S.
sanctions on associated insurance and transportation services.'' To
implement this provision of the JPOA during the Extended JPOA Period,
the USG will continue to take the following steps to allow for China,
India, Japan, the Republic of Korea, Taiwan, and Turkey to maintain
their current average level of imports from Iran during the JPOA Period
and the Extended JPOA Period and to render non-sanctionable a limited
number of transactions for the release in installments of an agreed
amount of revenue to Iran for receipt at participating foreign
financial institutions in selected jurisdictions:
1. Correspondent or Payable-Through Account Sanctions: The USG will
not impose correspondent or payable-through account sanctions under
sections 1(a)(i)-(ii) of E.O. 13622 (as amended by section 16(a) of
E.O. 13645); section 3(a)(i) of E.O. 13645; and sections 561.201(a)(5),
561.204(a), and 561.204(b)(1)-(2) of the IFSR with respect to foreign
financial institutions that conduct or facilitate transactions
exclusively during the JPOA Period and/or the Extended JPOA Period by
non-U.S. persons not otherwise subject to the ITSR for exports of
petroleum and petroleum products from Iran to China, India, Japan, the
Republic of Korea, Taiwan, or Turkey, and associated insurance \7\ and
transportation services, that are initiated and completed entirely
within the JPOA Period and/or the Extended JPOA Period, including
transactions involving the National Iranian Oil Company (NIOC) or the
National Iranian Tanker Company (NITC), provided that the transactions
do not involve persons on the SDN List other than NIOC, NITC, or any
Iranian depository institutions listed solely pursuant to E.O.
13599.\8\
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\7\ See footnote 1 above for additional information regarding
associated insurance payments.
\8\ For the purposes of the sanctions relief with respect to
Iran's exports of crude oil described in this section, the term
``associated insurance and transportation services'' means insurance
and transportation services ordinarily incident to the underlying
activity covered by the JPOA, provided, however, such services may
not involve persons on the SDN List other than NIOC, NITC, or any
Iranian depository institutions listed solely pursuant to E.O.
13599.
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2. Blocking Sanctions: The USG will not impose blocking sanctions
under section 1(a)(iii) of E.O. 13382; section 5(a) of E.O. 13622;
sections 2(a)(i)-(ii) of E.O. 13645; section 544.201(a)(3) of the
WMDPSR; and section 560.211(c)(2) of the ITSR with respect to non-U.S.
persons not otherwise subject to the ITSR that, exclusively during the
JPOA Period and/or the Extended JPOA Period, materially assist,
sponsor, or provide financial, material, or technological support for,
or goods or services in support of, exports of petroleum and petroleum
products from Iran to China, India, Japan, the Republic of Korea,
Taiwan, or Turkey, and associated insurance \9\ and transportation
services, including for activities involving NIOC or NITC, provided
such activities are initiated and completed entirely within the JPOA
Period and/or the Extended JPOA Period, and further provided that the
activities do not involve persons on the SDN List other than NIOC,
NITC, or any Iranian depository institutions listed solely pursuant to
E.O. 13599.
---------------------------------------------------------------------------
\9\ See footnote 1 above for additional information regarding
associated insurance payments.
---------------------------------------------------------------------------
3. Menu-Based Sanctions: The USG will not impose sanctions under
section 2(a)(i) of E.O. 13622 (as amended by section 16(c) of E.O.
13645) on non-U.S. persons not otherwise subject to the ITSR who engage
in transactions exclusively during the JPOA Period and/or the Extended
JPOA Period for exports of petroleum and petroleum products from Iran
to China, India, Japan, the Republic of Korea, Taiwan, or Turkey, and
associated insurance \10\ and transportation services, including
transactions involving NIOC or NITC, provided such activities are
initiated and completed entirely within the JPOA Period and/or the
Extended JPOA Period, and further provided that the activities do not
involve persons on the SDN List other than NIOC, NITC, or any Iranian
depository institutions listed solely pursuant to E.O. 13599.
---------------------------------------------------------------------------
\10\ See footnote 1 above for additional information regarding
associated insurance payments.
---------------------------------------------------------------------------
In addition, please see Section VII below, which describes the
exercise of certain waiver authorities relevant to the activities and
transactions described in this section.
VI. Facilitation of Humanitarian and Certain Other Transactions
The JPOA provides for the establishment of ``a financial channel to
facilitate humanitarian trade for Iran's domestic needs using Iranian
oil revenues held abroad. Humanitarian trade [is] defined as
transactions involving food and agricultural products, medicine,
medical devices, and medical expenses incurred abroad. This channel
could also enable transactions required to pay Iran's UN obligations .
. . and direct tuition payments to universities and colleges for
Iranian students studying abroad.'' In furtherance of the JPOA, the
P5+1 and Iran established mechanisms to further facilitate the purchase
of, and payment for, the export of food, agricultural commodities,
medicine, and medical devices to Iran, as well as to facilitate Iran's
payments of UN obligations, Iran's payments for medical expenses
incurred abroad by Iranian citizens, and Iran's payments of an agreed
amount of governmental tuition assistance for Iranian students studying
abroad. The mechanisms will remain in place during the Extended JPOA
Period. Foreign financial institutions whose involvement in hosting
these new mechanisms was sought by Iran have been contacted directly by
the U.S. Department of the Treasury and provided specific guidance.
Please note that the JPOA-related mechanism for humanitarian trade
transactions is not the exclusive way to finance or facilitate the sale
of food, agricultural commodities, medicine, and medical devices to
Iran by non-U.S. persons not otherwise subject to the ITSR, which is
not generally sanctionable so long as the transaction does not involve
persons designated in connection with Iran's support for international
terrorism or Iran's proliferation of weapons of mass destruction (WMD)
or WMD delivery systems. Therefore, transactions for the export of
food, agricultural commodities, medicine, and medical devices to Iran
generally may be processed pursuant to pre-existing exceptions and are
not required to be processed through the new mechanism.
In addition, please see Section VII below, which describes the
exercise of certain waiver authorities relevant to the activities and
transactions described in this section.
VII. Waivers
To enable the implementation during the Extended JPOA Period of the
sanctions relief outlined in the JPOA and described in detail in
sections I through VI of this guidance, the USG has renewed, as needed,
limited waivers of sanctions under: Section 1245(d)(1) of the National
Defense Authorization Act for Fiscal Year 2012 (NDAA) in connection
with exports of crude oil from Iran to China, India, Japan, the
Republic of Korea, Taiwan, and Turkey and for transactions related to
the release in installments of an agreed amount of revenues to Iran for
receipt at participating foreign financial institutions in selected
jurisdictions and the establishment of the financial channel provided
for in the JPOA; section 302(a) of the Iran Threat Reduction and Syria
Human Rights Act
[[Page 45237]]
of 2012 with respect to certain transactions involving NIOC; section
5(A)(7) of the Iran Sanctions Act of 1996 with respect to certain
transactions involving NIOC and NITC; and the following sub-sections of
the Iran Freedom and Counter-Proliferation Act of 2012:
1. 1244(c)(1)--to the extent required for transactions by non-U.S.
persons (and, in the case of the civil aviation activities described in
section IV, U.S. persons): (i) For Iran's export of crude oil to China,
India, Japan, the Republic of Korea, Taiwan, and Turkey, excluding any
transactions involving persons on the SDN List other than NIOC and
NITC; (ii) for the export from Iran of petrochemical products,
excluding any transactions involving persons on the SDN List other than
the petrochemical companies listed in the Annex to this guidance; (iii)
for the sale of precious metals to or from Iran, excluding any
transactions involving persons on the SDN List other than any political
subdivision, agency, or instrumentality of the Government of Iran
listed solely pursuant to E.O. 13599; and (iv) for the supply and
installation of spare parts necessary for the safety of Iranian civil
aviation flights and for safety-related inspections and repairs in
Iran, excluding any transactions involving persons on the SDN List
other than Iran Air.
2. 1244(d)--to the extent required for transactions by non-U.S.
persons related to Iran's export of crude oil to China, India, Japan,
the Republic of Korea, Taiwan, and Turkey, excluding any transactions
involving persons on the SDN List other than NIOC and NITC.
3. 1245(a)(1)(A) and 1245(c)--to the extent required for
transactions by non-U.S. persons for the sale, supply, or transfer of
precious metals to or from Iran, provided that such transactions do not
involve persons on the SDN List other than any political subdivision,
agency, or instrumentality of the Government of Iran listed solely
pursuant to E.O. 13599 or any Iranian depository institutions listed
solely pursuant to E.O. 13599, and further provided that such
transactions do not involve funds credited to an account located
outside Iran pursuant to section 1245(d)(4)(D)(ii)(II) of NDAA.
4. 1246(a)--to the extent required for transactions by non-U.S.
persons (and, in the case of the civil aviation activities described in
section IV, U.S. persons) for: (i) Iran's exports of crude oil to
China, India, Japan, the Republic of Korea, Taiwan, and Turkey,
excluding any transactions involving persons on the SDN List other than
NIOC and NITC; (ii) the export from Iran of petrochemical products,
excluding any transactions involving persons on the SDN List other than
the petrochemical companies listed in the Annex to this guidance; (iii)
the sale of precious metals to or from Iran, excluding any transactions
involving persons on the SDN List other than any political subdivision,
agency, or instrumentality of the Government of Iran listed solely
pursuant to E.O. 13599; (iv) the sale, supply, or transfer to Iran of
goods and services used in connection with the automotive sector of
Iran, excluding any transactions involving persons on the SDN List; and
(v) the supply and installation of spare parts necessary for the safety
of Iranian civil aviation flights and for safety-related inspections
and repairs in Iran, excluding any transactions involving persons on
the SDN List other than Iran Air.
5. 1247(a)--to the extent required for transactions by foreign
financial institutions on behalf of: (i) NIOC and NITC related to
Iran's exports of crude oil to China, India, Japan, the Republic of
Korea, Taiwan, and Turkey; (ii) the entities listed in the Annex to
this guidance for the export of petrochemical products from Iran; (iii)
any political subdivision, agency, or instrumentality of the Government
of Iran on the SDN List solely pursuant to E.O. 13599 for the sale of
precious metals to or from Iran; and (iv) Iran Air for the supply and
installation of spare parts necessary for the safety of Iranian civil
aviation flights and for safety-related inspections and repairs in
Iran.
Annex
1. Bandar Imam Petrochemical Company;
2. Bou Ali Sina Petrochemical Company;
3. Ghaed Bassir Petrochemical Products Company;
4. Iran Petrochemical Commercial Company;
5. Jam Petrochemical Company;
6. Marjan Petrochemical Company;
7. Mobin Petrochemical Company;
8. National Petrochemical Company;
9. Nouri Petrochemical Company;
10. Pars Petrochemical Company;
11. Sadaf Petrochemical Assaluyeh Company;
12. Shahid Tondgooyan; Petrochemical Company;
13. Shazand Petrochemical Company; and
14. Tabriz Petrochemical Company.
Issued: July 21, 2014.
Dated: July 29, 2014.
Adam J. Szubin,
Director, Office of Foreign Assets Control.
[FR Doc. 2014-18315 Filed 8-1-14; 8:45 am]
BILLING CODE 4810-AL-P
