JCPOA Implementation Day Guidance: Iran’s Shipping and Shipbuilding Sectors and Port Operators

D. Sanctions Related to Iran’s Shipping and Shipbuilding Sectors and Port
Operators

Commitment:

Section 4.4 of Annex II and section 17.1 of Annex V of the JCPOA provide for the lifting, on
Implementation Day, of secondary sanctions that apply to non-U.S. persons with respect to Iran’s
shipping and shipbuilding sectors and port operators. In particular, beginning on Implementation
Day, the following activities by non-U.S. persons are no longer sanctionable:

  • Transactions with Iran’s shipping and shipbuilding sectors and port operators, including
    IRISL, South Shipping Line, and NITC, and the port operator(s) of Bandar Abbas
    43 (see
    section 4.4.1 of Annex II of the JCPOA); and
  • The provision of associated services for the categories above (see section 4.4.2 of Annex
    II of the JCPOA).

Implementation:

To effectuate the lifting of these sanctions on Implementation Day, the USG, in addition to
removing certain individuals and entities from the SDN List, FSE List, and NS-ISA List as
described in section III below, took the following steps:

1. Correspondent or Payable-Through Account Sanctions:

a. Waived the imposition of correspondent or payable-through account sanctions
under: section 1245(d)(1) of NDAA 2012 (for significant financial transactions by
FFIs with the CBI)
44; section 1244(d)(2) of IFCA (for significant financial
transactions by FFIs for the sale, supply, or transfer to or from Iran of significant
goods or services used in connection with the energy, shipping, or shipbuilding
sectors of Iran, including NIOC, NITC, and IRISL); section 1245(c) of IFCA (for
significant financial transactions by FFIs for the sale, supply, or transfer to or
from Iran of precious metals or specified materials (graphite, raw or semi-finished
metals such as aluminum and steel, coal, and software for integrating industrial
processes) that are within the scope of the waivers under section 1245(a)(1) of
IFCA, as described in section VI below); and section 1247(a) of IFCA.
45

b. Revoked E.O. 13645, including the correspondent or payable-through account
sanctions under subsection 3(a)(i) (for significant transactions by FFIs on behalf
of any Iranian person on the SDN List or any other person included on the SDN
List whose property and interests in property are blocked pursuant to subsection
2(a)(i) of E.O. 13645 or E.O. 13599).
46

c. Committed to refrain from imposing sanctions under section 561.203(a) of the
IFSR for transactions by FFIs with the CBI that are consistent with the waiver of
section 1245(d)(1) of NDAA 2012.

Blocking Sanctions:

a. Waived the imposition of blocking sanctions under section 1244(c)(1) of IFCA47
(with respect to non-U.S. persons who knowingly provide significant financial,
material, technological, or other support to, or goods or services in support of any
activity or transaction on behalf of or for the benefit of a person determined to be
part of the energy, shipping, or shipbuilding sectors of Iran or to operate a port in
Iran, or Iranian individuals or entities set forth in Attachment 3 to Annex II of the
JCPOA).
48

b. Revoked: E.O. 13622, including the blocking sanctions under section 5(a) (with
respect to persons who have materially assisted, sponsored, or provided financial,
material, or technological support for, or goods or services in support of, NIOC,
NICO, or the CBI, or the purchase or acquisition of U.S. bank notes or precious
metals by the Government of Iran); and E.O. 13645, including the blocking
sanctions under subsection 2(a)(i) (with respect to persons who have materially
assisted, sponsored, or provided financial, material, or technological support for,
or goods or services to or in support of, any Iranian person included on the SDN
List or any other person included on the SDN List whose property and interests in
property are blocked pursuant to subsection 2(a)(i) of E.O. 13645 or E.O.
13599).
49

Menu-based Sanctions:

a. Waived the imposition of menu-based sanctions under: section 212(a) of the TRA
(with respect to non-U.S. persons who knowingly provide underwriting services or insurance or reinsurance for NIOC, NITC, or a successor entity to either
company, in cases where the transactions are for activities described in section 4.4
of Annex II of the JCPOA); section 1244(d)(1) of IFCA (with respect to non-U.S.
persons who knowingly sell, supply, or transfer to or from Iran significant goods
or services used in connection with the energy, shipping, or shipbuilding sectors
of Iran, including NIOC, NITC, and IRISL); sections 1245(a)(1)(B),
1245(a)(1)(C)(i)(I)-(II) and 1245(a)(1)(C)(ii)(I)-(II) of IFCA (with respect to non-
U.S. persons who sell, supply, or transfer to or from Iran specified materials
(graphite, raw or semi-finished metals such as aluminum and steel, coal, and
software for integrating industrial processes), subject to certain limitations as
described in section VI below); and section 1246(a) of IFCA
50 (for non-U.S.
persons who provide underwriting services, insurance, or reinsurance in
connection with activities involving Iran that are described in sections 17.1 to
17.2 and 17.5 of Annex V of the JCPOA, or to or for any individual or entity
whose property and interests in property are blocked solely pursuant to E.O.
13599).

See section III for an overview of the sanctions list removals that occurred on Implementation
Day and section VI for an overview of the waiver determinations and findings issued in
connection with the JCPOA.

Effects of the lifting of the sanctions related to Iran’s shipping and shipbuilding sectors and
port operators:

As a result of the lifting of sanctions specified in sections 4.4.1 to 4.4.2 of Annex II and 17.1 of
Annex V of the JCPOA and described in this section, beginning on Implementation Day such
sanctions, including sanctions on associated services, do not apply to non-U.S. persons who are
part of the shipping or shipbuilding sectors of Iran or who: own, operate, control, or insure a
vessel used to transport crude oil, petroleum products (including refined petroleum products),
petrochemical products, or natural gas (including liquefied natural gas) to or from Iran; operate a
port in Iran, engage in activities with, or provide financial services and other goods and services
used in connection with, the shipping and shipbuilding sectors of Iran or a port operator in Iran
(including the port operator(s) of Bandar Abbas
51), including port services, such as bunkering
and inspection, classification, and financing, and the sale, leasing, and provision of vessels to
Iran, including to IRISL, NITC, and South Shipping Line or their affiliates.

For additional information on the sanctions lifting related to Iran’s shipping and shipping
sectors and port operators discussed in this subsection, please see section E of the
JCPOA FAQs.

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