[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