[Federal Register Volume 79, Number 249 (Tuesday, December 30, 2014)]
[Notices]
[Pages 78550-78553]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-30569]
-----------------------------------------------------------------------
DEPARTMENT OF STATE
[Public Notice 8985]
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
June 30, 2015
AGENCY: Department of State.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: On November 24, 2013, the United States and its partners in
the P5+1--France, the United Kingdom, Russia, China, and Germany--
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 renewed by mutual consent of the P5+1 and Iran on July
19, 2014, and again on November 24, 2014, extending the temporary
sanctions relief provided under the JPOA to cover the period beginning
on November 24, 2014, and ending June 30, 2015 (the Extended JPOA
Period), in order to continue negotiations aimed at achieving a long-
term comprehensive solution to ensure that Iran's nuclear program will
be exclusively peaceful.
This Notice outlines the U.S. Government (USG) 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: Paul Pavwoski,
Office of Economic Sanctions Policy and Implementation, Department of
State, Telephone: (202) 647-8836.
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 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 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 issued pursuant to the JPOA as
extended.
All suspended sanctions are scheduled to resume on July 1, 2015
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 should
expect sanctions
[[Page 78551]]
to apply to any activities that extend beyond the current end date of
the Extended JPOA Period, June 30, 2015. The temporary suspension of
sanctions applies only to activities that begin and end during the
period January 20, 2014 to June 30, 2015. 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 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
June 30, 2015, 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 USG 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 actions:
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:
---------------------------------------------------------------------------
\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)).
---------------------------------------------------------------------------
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;
---------------------------------------------------------------------------
\2\ 77 FR 67726-67731 (Nov. 13, 2012).
---------------------------------------------------------------------------
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;
4. Section 1246(a) of IFCA \3\ to the extent required for the
provision of underwriting services or insurance or reinsurance:
---------------------------------------------------------------------------
\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)).
---------------------------------------------------------------------------
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
[[Page 78552]]
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:
---------------------------------------------------------------------------
\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)).
---------------------------------------------------------------------------
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 1245(d)(5) of the National Defense
Authorization Act for Fiscal Year 2012, I determine that it is in the
national security interest of the United States to waive the imposition
of sanctions under Section 1245(d)(1) with respect to:
(1) Foreign financial institutions under the primary jurisdiction
of China, India, Japan, the Republic of Korea, the authorities on
Taiwan, and Turkey, subject to the following conditions:
a. This waiver shall apply to a financial transaction only for
trade in goods and services between Iran and the country with primary
jurisdiction over the foreign financial institution involved in the
financial transaction (but shall not apply to any transaction for the
sale, supply, or transfer to Iran of precious metals involving funds
credited to an account described in paragraph (b));
b. any funds owed to Iran as a result of such trade shall be
credited to an account located in the country with primary jurisdiction
over the foreign financial institution involved in the financial
transaction; and
c. with the exception that certain foreign financial institutions
notified directly in writing by the U.S. Government may engage in
financial transactions with the Central Bank of Iran in connection with
the repatriation of revenues and the establishment of a financial
channel, to the extent specifically provided for in the Joint Plan of
Action of November 24, 2013, as extended; and
(2) foreign financial institutions under the primary jurisdiction
of Switzerland and Oman that are notified directly in writing by the
U.S. Government, to the extent necessary for such foreign financial
institutions to engage in financial transactions with the Central Bank
of Iran in connection with the repatriation of revenues and the
establishment of a financial channel as specifically provided for in
the Joint Plan of Action of November 24, 2013, as extended.
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 November
24, 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.
(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.
[[Page 78553]]
Dated: December 10, 2014.
Charles H. Rivkin,
Assistant Secretary for Economic and Business Affairs.
[FR Doc. 2014-30569 Filed 12-29-14; 8:45 am]
BILLING CODE 4710-07-P