Iran Sanctions – Is this the End?

November 24, 2014 by Leave a comment

Today, November 24, is the last day for the special licensing program related to transaction in civil aircraft parts that are sold or transferred to Iran.  with respect to licensed transactions in civil aircraft parts destined for Iran, ALL TRANSACTIONS SHOULD BE COMPLETED TODAY, unless you have a license that explicitly permits transactions after today (make sure it also permits you to get paid!).

We have published several articles about this program, including:

The program for obtaining such licenses was extended during the summer, and is scheduled to expire today, November 24, 2014.  It has been extended in the past, but at present we do not know what will happen to the program for the foreseeable future.

CNN is reporting that the parties have set a new deadline for concluding their discussions: March 1. 2015.  But it is unclear whether the relaxed sanctions will remain relaxed through this period.

We have checked the Treasury Department information, where this information has typically been published in the past.  No updates are posted, there.  So until we hear otherwise, it is best to make sure you conclude your business with Iran TODAY, because sanctions may be fully enforced as of tomorrow.  If the program is extended, then we will let you know as soon as we know.

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Yes, You Can Still (Get a License to) Sell Aircraft Parts to Iran

August 24, 2014 by Leave a comment

The program that permitted aircraft parts to be sold to Iran has been extended through November 24, 2014.  This program is based on an agreement among China, France, Germany, Russia, United Kingdom, United States and Iran known as the Joint Plan of Action (JPOA).

Sellers subject to U.S. law still need to obtain a license from the Treasury Department. The license will be considered to be a “transactional license.” You can apply for the license here: https://licensing.ofac.treas.gov/Apply/Introduction.aspx.

The Agreement between the United States and Iran provides that the U.S. would license (i) the supply and installation in Iran of spare parts for safety of flight for Iranian civil aviation and associated services and (ii) safety related inspections and repairs in Iran as well as associated services. Licenses applications will be reviewed on a case-by-case basis, though, and there is no guarantee that a license will be issued in any case.

OFAC policy suggests that applications should provide complete details of all transactions for which authorization is sought, including U.S. Department of Commerce Export Control Classification Numbers (ECCN) as well as evidence that the proposed transactions are for safety of flight.

This includes aircraft parts and some services but it does not include complete aircraft. The “goods” provision is limited to “spare parts for safety of flight for Iranian civil aviation.”

Unless an extension is negotiated, all licenses issued pursuant to this program will expire on November 24, 2014. Therefore distributors should plan on completing all activities related to the licenses by that date … including payment! OFAC has pledged that it will not impose any sanctions on banks that facilitate the fund transfers for these licensed transactions during the relevant period, but that promise appears to end after November 24, 2014.

Related Documents:

Joint Plan of Action (JPOA) between the P5 + 1 and the Islamic Republic of Iran: http://www.state.gov/p/nea/rls/220042.htm

Guidance on the Extended Program: http://www.treasury.gov/resource-center/sanctions/Programs/Documents/jpoa_guidance_ext.pdf

Iran JPOA FAQs (see FAQ #10): http://www.treasury.gov/resource-center/sanctions/Programs/Documents/jpoa_faqs_ext.pdf

Amended Statement of Licensing Policy on Activities Related to the Safety Of Iran’s Civil Aviation Industry: http://www.treasury.gov/resource-center/sanctions/Programs/Documents/civil_aviation_slp_iran_ext.pdf

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Iran Sanctions Drawing to a Close?

January 22, 2014 by 1 Comment

The United States may begin exporting aircraft parts to Iran again very soon!

On January 12, 2014, six major nations (the United States, United Kingdom, Germany, France, Russia, and China, coordinated by EU High Catherine Ashton) concluded an agreement on a joint action plan to begin normalizing relations with Iran. The action plan is based on November 2013 negotiations.  The initial steps include a relaxation of the prohibitions against exporting aircraft parts to Iran.  The text of the agreement says that the United States will start to engage in the following activity:

License the supply and installation in Iran of spare parts for safety of flight for Iranian civil
aviation and associated services. License safety related inspections and repairs in Iran as well
as associated services.

The agreement makes it clear that sanctions relief could involve any Iranian airline including Iran Air.

The US regulations have not yet been published on this matter, so do not try to export to Iran yet!  And this process will still require licensing by the appropriate US agencies.  Watch the US government for formal instructions on the standards to be applied to the licensing of aircraft parts export to Iran.

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