Publication of Guidance Relating to the Provision of Certain Temporary Sanctions Relief, as Extended, 45233-45237 [2014-18315]

Download as PDF Federal Register / Vol. 79, No. 149 / Monday, August 4, 2014 / Notices after the EA becomes available to the public. Environmental, historic preservation, public use, or trail use/rail banking conditions will be imposed, where appropriate, in a subsequent decision. Pursuant to the provisions of 49 CFR 1152.29(e)(2), CGA shall file a notice of consummation with the Board to signify that it has exercised the authority granted and fully abandoned the Line. If consummation has not been effected by CGA’s filing of a notice of consummation by August 4, 2015, and there are no legal or regulatory barriers to consummation, the authority to abandon will automatically expire. Board decisions and notices are available on our Web site at ‘‘www.stb.dot.gov.’’ Decided: July 30, 2014. By the Board, Rachel D. Campbell, Director, Office of Proceedings. Derrick A. Gardner, 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: tkelley on DSK3SPTVN1PROD with NOTICES SUMMARY: VerDate Mar<15>2010 17:28 Aug 01, 2014 Jkt 232001 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 PO 00000 Frm 00059 Fmt 4703 Sfmt 4703 E:\FR\FM\04AUN1.SGM 04AUN1 45234 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. tkelley on DSK3SPTVN1PROD with NOTICES 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. VerDate Mar<15>2010 17:28 Aug 01, 2014 Jkt 232001 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). PO 00000 Frm 00060 Fmt 4703 Sfmt 4703 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.’’ E:\FR\FM\04AUN1.SGM 04AUN1 Federal Register / Vol. 79, No. 149 / Monday, August 4, 2014 / Notices tkelley on DSK3SPTVN1PROD with NOTICES 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 VerDate Mar<15>2010 17:28 Aug 01, 2014 Jkt 232001 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. PO 00000 Frm 00061 Fmt 4703 Sfmt 4703 45235 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 E:\FR\FM\04AUN1.SGM 04AUN1 45236 Federal Register / Vol. 79, No. 149 / Monday, August 4, 2014 / Notices tkelley on DSK3SPTVN1PROD with NOTICES 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. VerDate Mar<15>2010 17:28 Aug 01, 2014 Jkt 232001 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. PO 00000 Frm 00062 Fmt 4703 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 04AUN1 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 Frm 00063 Fmt 4703 Sfmt 4703 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 04AUN1

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]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control


Publication of Guidance Relating to the Provision of Certain 
Temporary Sanctions Relief, as Extended

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Notice, publication of guidance.

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SUMMARY: The Department of the Treasury's Office of Foreign Assets 
Control (OFAC) is publishing Guidance Relating to the Provision of 
Certain Temporary Sanctions Relief in Order to Implement the Joint Plan 
Of Action (JPOA) Reached on November 24, 2013, between the P5 + 1 and 
the Islamic Republic of Iran, as Extended Through November 24, 2014 
(Guidance).

DATES: Effective Date: July 21, 2014.

FOR FURTHER INFORMATION CONTACT: Assistant Director for Licensing, 
tel.: 202-622-2480, Assistant Director for Policy, tel.: 202-622-2402, 
Assistant Director for Regulatory Affairs, tel.: 202-622-4855, 
Assistant Director for Sanctions Compliance & Evaluation, tel.: 202-
622-2490, Office of Foreign Assets Control, or Chief Counsel (Foreign 
Assets Control), tel.: 202-622-2410, Office of the General Counsel, 
Department of the Treasury (not toll free numbers).

SUPPLEMENTARY INFORMATION:

Electronic and Facsimile Availability

    This document and additional information concerning OFAC are 
available from OFAC's Web site (www.treasury.gov/ofac). Certain general 
information pertaining to OFAC's sanctions programs also is available 
via facsimile through a 24-hour fax-on-demand service, tel.: 202-622-
0077.

Background

    On November 24, 2013, the United States and its partners in the P5 
+ 1 (China, France, Germany, Russia, the United Kingdom, and the United 
States, coordinated by the European Union's High Representative) 
reached an initial understanding with Iran, outlined in the JPOA, that 
halts progress on Iran's nuclear program and rolls it back in key 
respects. In return for Iran's commitment to place meaningful limits on 
its nuclear program, the P5 + 1 committed to provide Iran with limited, 
targeted, and reversible sanctions relief for a six-month period, 
renewable by mutual consent. In furtherance of the United States 
Government's (USG's) commitments under the JPOA, the U.S. Department of 
State and the U.S. Department of the Treasury implemented sanctions 
relief relating to certain activities and associated services taking 
place exclusively during the six-month period beginning on January 20, 
2014, and ending July 20, 2014 (the JPOA Period).
    The JPOA was renewed by mutual consent of the P5 + 1 and Iran on 
July 19, 2014, extending the temporary sanctions relief provided under 
the JPOA to cover the period beginning on July 21, 2014, and ending 
November 24, 2014 (the Extended JPOA Period), in order to continue to 
negotiate a long-term comprehensive solution to ensure that Iran's 
nuclear program will be exclusively peaceful. During the Extended JPOA 
Period, the sanctions relief the USG committed to during the JPOA will 
be continued, as set out in the Guidance. The USG retains the authority 
to revoke this limited sanctions relief at any time if Iran fails to 
meet its commitments under the JPOA.
    The Department of State and the Department of the Treasury jointly 
issued the updated Guidance on July 21, 2014. At the time of its 
issuance on July 21, 2014, OFAC made the Guidance available on the OFAC 
Web site: www.treasury.gov/ofac and the Department of State made the 
Guidance available on its Web site: www.state.gov. With this notice, 
OFAC is publishing the Guidance in the Federal Register.

Guidance

U.S. Department of the Treasury
U.S. Department of State

Guidance Relating to the Provision of Certain Temporary Sanctions 
Relief in Order To Implement the Joint Plan of Action Reached on 
November 24, 2013, Between the P5 + 1 and the Islamic Republic of Iran, 
as Extended Through November 24, 2014

    On November 24, 2013, the United States and its partners in the P5 
+ 1 (China, France, Germany, Russia, the United Kingdom, and the United 
States, coordinated by the European Union's High Representative) 
reached an initial understanding with Iran, outlined in a Joint Plan of 
Action (JPOA), that halts progress on Iran's nuclear program and rolls 
it back in key respects. In return for Iran's commitment to place 
meaningful limits on its nuclear program, the P5 + 1 committed to 
provide Iran with limited, targeted, and reversible sanctions relief 
for a six-month period, renewable by mutual consent. In furtherance of 
the U.S. Government's (USG) commitments under the JPOA, the U.S. 
Department of State and the U.S. Department of the Treasury implemented 
sanctions relief relating to certain activities and associated services 
taking place exclusively during the six-month period beginning on 
January 20, 2014, and ending July 20, 2014 (the JPOA Period).
    The JPOA was renewed by mutual consent of the P5 + 1 and Iran on 
July 19, 2014, extending the temporary sanctions relief provided under 
the JPOA to cover the period beginning on July 21, 2014, and ending 
November 24, 2014 (the Extended JPOA Period), in order to continue to 
negotiate a long-term comprehensive solution to ensure that Iran's 
nuclear program will be exclusively peaceful. During the Extended JPOA 
Period, the sanctions relief the USG committed to during the JPOA will 
be continued, as set out below. The USG retains the authority to revoke 
this limited sanctions relief at any time if Iran fails to meet its 
commitments under the JPOA.
    For purposes of the JPOA sanctions relief, the USG interprets the 
term ``associated service'' to mean any necessary service--including 
any insurance, transportation, or financial service--ordinarily 
incident to the underlying activity covered by the JPOA, provided, 
however, that unless otherwise noted, such services may not involve 
persons identified on the Department of the Treasury's Office of 
Foreign Assets Control's (OFAC) List of

[[Page 45234]]

Specially Designated Nationals and Blocked Persons (SDN List).\1\
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    \1\ Insurance payments for claims arising from incidents that 
occur during the JPOA Period and/or the Extended JPOA Period may be 
paid after November 24, 2014, so long as the underlying transactions 
and activities conform to all others aspects of the sanctions 
remaining in place and the terms of the sanctions relief provided by 
the JPOA. Insurance and reinsurance companies should contact the USG 
directly with any inquiries. U.S. persons and U.S.-owned or -
controlled foreign entities remain prohibited from participating in 
the provision of insurance or reinsurance services to or for the 
benefit of Iran or sanctioned entities, including with respect to 
all elements of the sanctions relief provided pursuant to the JPOA, 
unless specifically authorized by OFAC.
---------------------------------------------------------------------------

    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.
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I. Sanctions Related to Iran's Export of Petrochemical Products

    The JPOA provides for the temporary suspension of U.S. sanctions on 
``Iran's petrochemical exports, as well as sanctions on any associated 
services.'' To implement this provision of the JPOA during the Extended 
JPOA Period, the USG will continue to take the following steps to allow 
for the export of petrochemical products from Iran, as well as 
associated services, by non-U.S. persons not otherwise subject to 
section 560.215 of the Iranian Transactions and Sanctions Regulations, 
31 CFR part 560 (ITSR), (hereinafter ``non-U.S. persons not otherwise 
subject to the ITSR''):
    1. Correspondent or Payable-Through Account Sanctions: The USG will 
not impose correspondent or payable-through account sanctions under 
section 1(a)(iii) of Executive Order (E.O.) 13622 (as amended by 
section 16(b) of E.O. 13645); section 3(a)(i) of E.O. 13645; and 
sections 561.204(a) and 561.204(b)(3) of the Iranian Financial 
Sanctions Regulations, 31 CFR part 561 (IFSR), on foreign financial 
institutions that conduct or facilitate transactions that are initiated 
and completed entirely within the JPOA Period and/or the Extended JPOA 
Period by non-U.S. persons not otherwise subject to the ITSR for 
exports of petrochemical products \3\ from Iran that are initiated and 
completed entirely within the JPOA Period and/or the Extended JPOA 
Period, including transactions involving the petrochemical companies 
listed in the Annex to this guidance, provided that the transactions do 
not involve persons on the SDN List other than the petrochemical 
companies listed in the Annex to this guidance or any Iranian 
depository institutions \4\ listed solely pursuant to E.O. 13599.
---------------------------------------------------------------------------

    \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.
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    \6\ For the purposes of this guidance, the term ``Restricted 
Funds'' refers to: (i) Any existing and future revenues from the 
sale of Iranian petroleum or petroleum products, wherever they may 
be held, and (ii) any Central Bank of Iran (CBI) funds, with certain 
exceptions for non-petroleum CBI funds held at a foreign country's 
central bank.
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    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