JCPOA Implementation Day Guidance: Software and Metals

F. Sanctions Related to Software and Metals

Commitment:

Section 4.6 of Annex II and section 17.2 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 trade
with Iran in graphite, raw or semi-finished metals such as aluminum and steel, coal, and software
for integrating industrial processes, in connection with activities consistent with the JCPOA,
including trade with individuals and entities set forth in Attachment 3 to Annex II of the JCPOA
and the provision of associated services for each of the categories above.

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 and 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);
59 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 with 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 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.
60

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).
61

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 IFCA section 1244(c)(1)62
(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).
63

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).
64


Menu-based Sanctions:


a. Waived the imposition of menu-based sanctions under: 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 with NIOC, NITC, and
IRISL); section 1245(a)(1)(B)-(C) 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); section 1246(a) of IFCA
65 (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 sanctions relating to software and metals:

As a result of the lifting of sanctions specified in section 4.6 of Annex II and sections 17.1 to
17.2 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
sell, supply, or transfer, directly or indirectly, graphite, raw or semi-finished metals such as
aluminum and steel, coal, and software for integrating industrial processes, to or from Iran in
connection with activities consistent with the JCPOA, including trade with individuals and
entities set forth in Attachment 3 to Annex II of the JCPOA, and the sale, supply, or transfer of
such materials to the energy, petrochemical, shipping, and shipbuilding sectors of Iran, and
Iranian ports, or conduct or facilitate a financial transaction or provide services for the foregoing,
including insurance and reinsurance.

For additional information on the sanctions lifting related to Iran’s trade in software and metals
discussed in this subsection, please see section G of the
JCPOA FAQs.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s