[Federal Register Volume 79, Number 149 (Monday, August 4, 2014)]
[Notices]
[Pages 45228-45230]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-18333]
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DEPARTMENT OF STATE
[Public Notice 8809]
Provision of Certain Temporary and Limited Sanctions Relief in
Order To Implement the Joint Plan of Action of November 24, 2013
Between the P5+1 and the Islamic Republic of Iran, as Extended Through
November 24, 2014
AGENCY: Department of State.
ACTION: Notice.
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SUMMARY: On November 24, 2013, the United States and its partners in
the P5+1 (France, the United Kingdom, Russia, China, and Germany) and
the EU reached an initial understanding with Iran, outlined in a Joint
Plan of Action (JPOA), that halts progress on its nuclear program and
rolls it back in key respects. In return, the P5+1 committed to provide
limited, temporary, and targeted sanctions relief to Iran. The JPOA was
scheduled to expire after July 20, 2014.
The JPOA was renewed by mutual consent of the P5+1, EU, and Iran on
July 19, 2014, extending the temporary sanctions relief provided under
the JPOA through November 24, 2014 (the Extended JPOA Period), in order
to continue to negotiate a long-term comprehensive solution to prevent
Iran from acquiring a nuclear weapon and to ensure that Iran's nuclear
program will be exclusively peaceful.
This Notice outlines the U.S. government actions taken to implement
the sanctions relief aspects of this understanding.
DATES: Effective Date: The effective dates of these waiver actions are
as described in the determinations set forth below.
FOR FURTHER INFORMATION CONTACT: On general issues: John Hughes, Office
of Economic Sanctions Policy and Implementation, Department of State,
Telephone: (202) 647-7489.
SUPPLEMENTARY INFORMATION: To implement this limited sanctions relief,
the U.S. government has executed temporary, partial waivers of certain
statutory sanctions and has issued guidance regarding the suspension of
sanctions under relevant Executive Orders and regulations. All U.S.
sanctions not explicitly waived or suspended pursuant to the JPOA as
extended remain fully in force, including sanctions on transactions
with individuals and entities on the SDN List unless otherwise
specified.
Furthermore, U.S. persons and foreign entities owned or controlled
by U.S. persons (``U.S.-owned or -controlled foreign entities'')
continue to be
[[Page 45229]]
generally prohibited from conducting transactions with Iran, including
any transactions of the types permitted pursuant to the JPOA as
extended, unless licensed to do so by the Office of Foreign Assets
Control (OFAC). The U.S. government will continue to enforce U.S.
sanctions laws and regulations against those who engage in sanctionable
activities that are not covered by the suspensions and temporary
waivers pursuant to the JPOA as extended.
All suspended sanctions are scheduled to resume on November 25,
2014 unless further action is taken by the P5+1 and Iran and subsequent
waivers and guidance are issued by the U.S. government. Companies
engaging in activities covered by the temporary sanctions relief
described in this fact sheet should expect sanctions to apply to any
activities that extend beyond the current end date of the Extended JPOA
Period, November 24, 2014. The temporary suspension of sanctions
applies only to activities that begin and end during the period January
20, 2014 to November 24, 2014. Except as specified below with respect
to payments for insurance claims, the suspension does not apply to any
related, otherwise sanctionable conduct, including shipping and
financial activities, undertaken before that period or after that
period, even if they are undertaken pursuant to contracts entered into
during the JPOA period or Extended JPOA Period. For example, deliveries
of goods or services after the Extended JPOA Period would be
sanctionable even if relevant contracts were entered into during the
JPOA Period or Extended JPOA Period.
To the extent that the provision of insurance or reinsurance is an
associated service of an activity for which the JPOA provides temporary
relief, the provision of such insurance or reinsurance by a non-U.S.
person not otherwise subject to the Iranian Transactions and Sanctions
Regulations (ITSR) during the Extended JPOA Period would not be
sanctionable.
Insurance payments for claims arising from incidents that occur
during the JPOA Period and/or Extended JPOA Period may be paid after
November 24, 2014, so long as the underlying transactions and
activities conform to all other aspects of the sanctions remaining in
place and the terms of the sanctions relief provided in the JPOA.
Insurance and reinsurance companies should contact the U.S. government
directly with any inquiries.
U.S. persons and their foreign subsidiaries 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 Secretary of State took the following action:
Acting under the authorities vested in me as Secretary of State,
including through the applicable delegations of authority, I hereby
make the following determinations and certifications:
Pursuant to Sections 1244(i), 1245(g), 1246(e), and 1247(f) of the
Iran Freedom and Counter-Proliferation Act of 2012 (subtitle D of title
XII of Pub. L. 112-239, 22 U.S.C. 8801 et seq.) (IFCA), I determine
that it is vital to the national security of the United States to waive
the imposition of sanctions pursuant to:
1. Section 1244(c)(1) of IFCA \1\ to the extent required for:
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\1\ Pursuant to section 1244(c)(2)(C)(iii) of IFCA, the relevant
sanction in Section 1244(c)(1) continues not to apply, by its terms,
in the case of Iranian financial institutions that have not been
designated for the imposition of sanctions in connection with Iran's
proliferation of weapons of mass destruction or delivery systems for
weapons of mass destruction, support for international terrorism, or
abuses of human rights (as described in section 1244(c)(3)).
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a. Transactions by non-U.S. persons for the export from Iran of
petrochemical products,\2\ and for associated services, excluding any
transactions involving persons on the list of specially designated
nationals and blocked persons of the Office of Foreign Assets Control
(OFAC) of the U.S. Department of the Treasury (hereinafter the SDN
List) except for the following companies: Bandar Imam Petrochemical
Company; Bou Ali Sina Petrochemical Company; Ghaed Bassir Petrochemical
Products Company; Iran Petrochemical Commercial Company; Jam
Petrochemical Company; Marjan Petrochemical Company; Mobin
Petrochemical Company; National Petrochemical Company; Nouri
Petrochemical Company; Pars Petrochemical Company; Sadaf Petrochemical
Assaluyeh Company; Shahid Tondgooyan Petrochemical Company; Shazand
Petrochemical Company; and Tabriz Petrochemical Company;
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\2\ 77 FR 67726-67731 (Nov. 13, 2012).
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b. Transactions by U.S. or non-U.S. persons for the supply and
installation of spare parts necessary for the safety of flight for
Iranian civil aviation, for safety-related inspections and repairs in
Iran, and for associated services, provided that OFAC has issued any
required licenses, excluding any transactions involving persons on the
SDN List except for Iran Air;
c. Transactions by non-U.S. persons to which sanctions would not
apply if an exception under section 1244(g)(2) of IFCA were applied to
China, India, Japan, the Republic of Korea, Taiwan, and Turkey, and for
insurance and transportation services associated with such
transactions, provided that such transactions are consistent with the
purchase amounts provided for in the Joint Plan of Action of November
24, 2013, as extended, excluding any transactions or associated
services involving persons on the SDN List except for the National
Iranian Oil Company and the National Iranian Tanker Company;
d. Transactions by non-U.S. persons for the sale, supply or
transfer to or from Iran of precious metals, provided that such
transactions are within the scope of the waiver of Sections
1245(a)(1)(A) and 1245(c) of IFCA (section 3 below), and for associated
services, excluding any transactions involving persons on the SDN List
except for any political subdivision, agency, or instrumentality of the
Government of Iran listed solely pursuant to E.O. 13599;
2. Section 1244(d) of IFCA to the extent required for the sale,
supply or transfer of goods or services by non-U.S. persons in
connection with transactions by non-U.S. persons to which sanctions
would not apply if an exception under section 1244(g)(2) of IFCA were
applied to China, India, Japan, the Republic of Korea, Taiwan, and
Turkey, and for insurance and transportation services associated with
such transactions, provided that such transactions are consistent with
the purchase amounts provided for in the Joint Plan of Action of
November 24, 2013, as extended, excluding any transactions or
associated services involving persons on the SDN List except for the
National Iranian Oil Company and the National Iranian Tanker Company;
3. Sections 1245(a)(1)(A) and 1245(c) of IFCA to the extent
required for transactions by non-U.S. persons for the sale, supply, or
transfer to or from Iran of precious metals, provided that:
a. Such transactions do not involve persons on the SDN List, except
for any political subdivision, agency, or instrumentality of the
Government of Iran listed solely pursuant to E.O. 13599 or any Iranian
depository institution listed solely pursuant to E.O. 13599; and
b. This waiver shall not apply to transactions for the sale,
supply, or transfer to Iran of precious metals involving funds credited
to an account located outside Iran pursuant to Section
1245(d)(4)(D)(ii)(II) of the National Defense Authorization Act for
Fiscal Year 2012;
[[Page 45230]]
4. Section 1246(a) of IFCA \3\ to the extent required for the
provision of underwriting services or insurance or reinsurance:
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\3\ Pursuant to section 1246(a)(1)(C) of IFCA, the relevant
sanction in section 1246(a)(1) continues not to apply, by its terms,
in the case of Iranian financial institutions that have not been
designated for the imposition of sanctions in connection with Iran's
proliferation of weapons of mass destruction or delivery systems for
weapons of mass destruction, support for international terrorism, or
abuses of human rights (as described in section 1246(b)).
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a. By non-U.S. persons for the export from Iran of petrochemical
products and for associated services, excluding any transactions
involving persons on the SDN List except for the following companies:
Bandar Imam Petrochemical Company; Bou Ali Sina Petrochemical Company;
Ghaed Bassir Petrochemical Products; Iran Petrochemical Commercial
Company; Jam Petrochemical Company; Marjan Petrochemical Company; Mobin
Petrochemical Company; National Petrochemical Company; Nouri
Petrochemical Company; Pars Petrochemical Company; Sadaf Petrochemical
Assaluyeh Company; Shahid Tondgooyan Petrochemical Company; Shazand
Petrochemical Company; and Tabriz Petrochemical Company;
b. By U.S. persons or non-U.S. persons for the supply and
installation of spare parts necessary for the safety of flight for
Iranian civil aviation, for safety-related inspections and repairs in
Iran, and for associated services, provided that OFAC has issued any
required licenses, excluding any transactions involving persons on the
SDN List except for Iran Air;
c. By non-U.S. persons for transactions to which sanctions would
not apply if an exception under section 1244(g)(2) of IFCA were applied
to China, India, Japan, the Republic of Korea, Taiwan, and Turkey, and
for insurance and transportation services associated with such
transactions, provided that such transactions are consistent with the
purchase amounts provided for in the Joint Plan of Action of November
24, 2013, as extended, excluding any transactions or associated
services involving persons on the SDN List except for the National
Iranian Oil Company and the National Iranian Tanker Company; and
d. By non-U.S. persons for the sale, supply or transfer to or from
Iran of precious metals, provided that such transactions are within the
scope of the waiver of Sections 1245(a)(1)(A) and 1245(c) of IFCA, and
for associated services, excluding any transactions involving persons
on the SDN List except for any political subdivision, agency, or
instrumentality of the Government of Iran listed solely pursuant to
E.O. 13599;
e. By non-U.S. persons for the sale, supply or transfer to Iran of
goods and services used in connection with the automotive sector of
Iran and for associated services, excluding any transactions involving
persons on the SDN List.
5. Section 1247(a) of IFCA \4\ to the extent required for
transactions by foreign financial institutions on behalf of:
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\4\ Pursuant to section 1247(a) of IFCA, the relevant sanction
in section 1247(a) still continues not to apply, by its terms, in
the case of Iranian financial institutions that have not been
designated for the imposition of sanctions in connection with Iran's
proliferation of weapons of mass destruction or delivery systems for
weapons of mass destruction, support for international terrorism, or
abuses of human rights (as described in section 1247(b)).
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a. Bandar Imam Petrochemical Company; Bou Ali Sina Petrochemical
Company; Ghaed Bassir Petrochemical Products; Iran Petrochemical
Commercial Company; Jam Petrochemical Company; Marjan Petrochemical
Company; Mobin Petrochemical Company; National Petrochemical Company;
Nouri Petrochemical Company; Pars Petrochemical Company; Shahid
Tondgooyan Petrochemical Company; Sadaf Petrochemical Assaluyeh
Company; Shahid Tondgooyan Petrochemical Company; Shazand Petrochemical
Company; and Tabriz Petrochemical Company for the export from Iran of
petrochemicals;
b. Iran Air for the supply and installation of spare parts
necessary for the safety of flight by Iran Air and for safety-related
inspections and repairs for Iran Air, provided that OFAC has issued any
required licenses;
c. The National Iranian Oil Company and the National Iranian Tanker
Company for transactions by non-U.S. persons to which sanctions would
not apply if an exception under section 1244(g)(2) of IFCA were applied
to China, India, Japan, the Republic of Korea, Taiwan, and Turkey,
provided that such transactions are consistent with the purchase
amounts provided for in the Joint Plan of Action of November 24, 2013,
as extended, excluding any transactions or associated services
involving any other persons on the SDN List; and
d. Any political subdivision, agency, or instrumentality of the
Government of Iran listed solely pursuant to E.O. 13599 for the sale,
supply or transfer to or from Iran of precious metals, provided that
such transactions are within the scope of the waiver of Sections
1245(a)(1)(A) and 1245(c) of IFCA.
Pursuant to Section 4(c)(1)(A) of the Iran Sanctions Act of 1996
(Pub. L. 104-172, 50 U.S.C. 1701 note) (ISA), I certify that it is
vital to the national security interests of the United States to waive
the application of section 5(a)(7) of ISA to the National Iranian Oil
Company and the National Iranian Tanker Company to the extent required
for insurance and transportation services provided on or after July 18,
2014, and associated with transactions to which sanctions would not
apply if an exception under section 1244(g)(2) of IFCA were applied to
China, India, Japan, the Republic of Korea, Taiwan, and Turkey,
provided that such transactions are consistent with the purchase
amounts provided for in the Joint Plan of Action of November 24, 2013,
as extended.
These waivers shall take effect upon their transmittal to Congress,
unless otherwise provided in the relevant provision of law, and the
waivers shall apply to transactions during the period July 18, 2014,
through November 24, 2014.
(Signed John F. Kerry, Secretary of State)
Therefore, these sanctions have been waived as described in the
determinations above. Relevant agencies and instrumentalities of the
United States Government shall take all appropriate measures within
their authority to carry out the provisions of this notice.
Dated: July 28, 2014.
Charles H. Rivkin,
Assistant Secretary for Economic and Business Affairs.
[FR Doc. 2014-18333 Filed 8-1-14; 8:45 am]
BILLING CODE 4710-07-P