JCPOA Implementation Day Guidance: Section IV (Other Trade Measures)

IV. Other Trade Measures

Commitment:

Pursuant to section 5 of Annex II and section 17.5 of Annex V of the JCPOA, the USG
committed to license three categories of activity that would otherwise be prohibited under the
ITSR, provided that relevant transactions do not involve individuals or entities on the SDN List
and are otherwise consistent with applicable U.S. laws and regulations.
80

Implementation:

To fulfill these commitments, OFAC has issued: (i) a Statement of Licensing Policy (SLP)
allowing for the case-by-case licensing of the export, reexport, sale, lease, or transfer to Iran of
commercial passenger aircraft, spare parts and components for such aircraft, and associated
services, all for exclusively commercial passenger aviation; (ii) a general license authorizing
U.S.-owned or -controlled foreign entities to engage in certain activity with Iran that is consistent
with the JCPOA; and (iii) a general license authorizing the importation into the United States of
Iranian-origin carpets and foodstuffs, including pistachios and caviar.

A. Statement of Licensing Policy for Activities Related to the Export or Reexport
to Iran of Commercial Passenger Aircraft and Related Parts and Services
(SLP)

OFAC has issued a SLP, effective on Implementation Day, which establishes a favorable
licensing policy regime through which U.S. persons and, where there is a nexus to U.S.
jurisdiction, non-U.S. persons may request specific authorization from OFAC to engage in
transactions for the (i) export, reexport, sale, lease or transfer to Iran of commercial passenger
aircraft for exclusively civil aviation end use, (ii) export, reexport, sale, lease or transfer to Iran
of spare parts and components for commercial passenger aircraft; and (iii) provision of
associated services, including warranty, maintenance, and repair services and safety-related
inspections, for all the foregoing, provided that licensed items and services are used exclusively
for commercial passenger aviation.
81 Any export, reexport, or transfer of U.S. export-controlled items must be consistent with U.S. legal requirements, including those under the Iran-Iraq Arms
Non-Proliferation Act and section 6(j) of the Export Administration Act. In addition, exports or
reexports to individuals and entities listed on the Department of Commerce’s Denied Persons
List and, in some cases, the Entity List will require separate authorization from the Department
of Commerce.

Please note that, should the United States determine that aircraft, goods, or services licensed for
export, reexport, sale, lease, or transfer to Iran under the SLP have been used for purposes other
than exclusively for commercial passenger aviation, or have been re-sold or re-transferred to
persons on the SDN List, the United States would view this as grounds to cease performing its
commitments under Section 5.1.1 of Annex II of the JCPOA in whole or in part. See
section
5.1.1. of Annex II of the JCPOA.

For additional information on the SLP discussed in this subsection, please see section J of the
JCPOA FAQs.

B. General License Authorizing Activities by Non-U.S. Persons that are Owned
or Controlled by a U.S. Person

OFAC has issued General License H: Authorizing Certain Transactions Relating to Foreign
Entities Owned or Controlled by a United States Person (GL H)
, effective on Implementation
Day, authorizing U.S.-owned or -controlled foreign entities to engage in certain transactions
involving Iran that would otherwise be prohibited by section 560.215 of the ITSR. GL H does
not authorize U.S.-owned or -controlled foreign entities to engage in any transactions involving:
(1) the direct or indirect exportation or reexportation of goods, technology, or services from the
United States (without separate authorization from OFAC); (2) any transfer of funds to, from, or
through the U.S. financial system; (3) any individual or entity on the SDN List or any activity
that would be prohibited by non-Iran sanctions administered by OFAC if engaged in by a U.S.
person or in the United States; (4) any individual or entity identified on the FSE List; (5) unless
authorized by the U.S. Department of Commerce, activity prohibited by, or requiring a license
under, part 744 of the U.S. Export Administration Regulations (EAR) or a person whose export
privileges have been denied pursuant to part 764 or 766 of the EAR; (6) any military,
paramilitary, intelligence, or law enforcement entity of the Government of Iran, or any officials,
agents, or affiliates thereof; (7) any activity that is sanctionable under E.O. 12938 or 13382
(relating to Iran’s proliferation of weapons of mass destruction and their means of delivery,
including ballistic missiles); E.O. 13224 (relating to international terrorism); E.O. 13572 or
13582 (relating to Syria); E.O. 13611 (relating to Yemen); or E.O. 13553 or 13606, or section 2
or 3 of E.O. 13628 (relating to Iran’s commission of human rights abuses against its citizens);
and (8) any nuclear activity involving Iran that is subject to the procurement channel established
pursuant to paragraph 16 of UNSCR 2231 (2015) and section 6 of Annex IV of the Joint
Comprehensive Plan of Action of July 14, 2015 and that has not been approved through the
procurement channel process.

In addition, GL H authorizes U.S. persons to engage in certain activities otherwise prohibited by
the ITSR, namely, activities related to the establishment or alteration of corporate policies and
procedures to the extent necessary to allow U.S.-owned or -controlled foreign entities to engage
in transactions involving Iran that are authorized under GL H, and making available to foreign
entities they own or control certain automated and globally integrated business support systems.
Please be advised, however, that with the exception of activities authorized in GL H, the
prohibition on facilitation by United States persons under section 560.208 of the ITSR will
remain in effect.

For additional information on GL H, please see section K of the JCPOA FAQs.

C. General License Authorizing the Importation of Iranian-Origin Carpets and

Foodstuffs

OFAC has issued a regulatory amendment to the ITSR, effective upon publication in the Federal
Register
, to authorize the importation into the United States of Iranian-origin carpets and
foodstuffs, including pistachios and caviar. This authorization covers: (i) carpets and other
textile floor coverings and carpets used as wall hangings that are classified under chapter 57 or
heading 9706.00.0060 of the Harmonized Tariff Schedule of the United States (HTS),
82 and

(ii) foodstuffs intended for human consumption that are classified under chapters 2-23 of the
HTS.
83 Carpets and foodstuffs authorized for importation pursuant to the general license are still
subject to all other laws and regulations applicable to goods imported into the United States,
including generally applicable laws and regulations administered by other departments and
agencies, such as the Departments of Agriculture or Commerce, the Food and Drug
Administration, or Customs and Border Protection.

In addition, under an accompanying provision, U.S. depository institutions are authorized to
process letters of credit for payments for Iranian-origin carpets and foodstuffs, and U.S. persons
are authorized to act as brokers for the purchase or sale of Iranian-origin carpets and foodstuffs
authorized to be imported into the United States under the general license.

OFAC’s publication of this general license as an amendment to the ITSR fulfills the requirements
of section 103(d)(2)(A) of CISADA. In addition, the Secretary of State’s submission to the
appropriate congressional committees of a certification in writing that it is in the national interest
of the United States to provide an exception to the prohibition on the importation of Iranian-
origin goods to the extent required to implement the sanctions relief described in section 5.1.3 of
Annex II of the JCPOA and a report describing the reasons for this exception fulfills the
requirements of section 103(d)(2)(B) of CISADA.

For additional information on the general license for carpets and foodstuffs, please see section L
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