Doing Business With Iran Under a JCPOA License? Get Your Transactions Completed by August 6, 2018.

June 13, 2018 by 1 Comment

As we reported on May 8, the United States’ decision to end the JCPOA agreement with Iran means that existing JCPOA-based licenses will be revoked on August 6.  A number of ASA members have these export licenses, which permit aircraft-parts-business with the specified Iranian parties.

On May 8, the President announced his decision to discontinue the United States’ participation in the Agreement with Iran, and to reimpose sanctions against Iran.

The Treasury has published a document explaining the wind-down process, including answers to frequently asked questions.  The wind-down document explains that the United States government plans to revoke JCPOA-related authorizations, such as the aircraft and aircraft parts-related export licenses that were issued pursuant to the US-Iran Agreement.  Those export licenses are scheduled to be terminated as of August 6, 2018.

Those ASA members who hold JCPOA export licenses (which are being terminated) may consider applying for replacement licenses under the safety of flight statement of licensing policy found in 31 C.F.R. § 560.528. That provision permits licenses on a case-by-case basis for exporting to Iran in order to ensure the safety of civil aviation and safe operation of U.S.-origin commercial passenger aircraft.  Historically, the United States government has not issued many of these licenses, but if the transaction is valuable to the United States then the transaction might be considered for licensing.

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US-Iran Trade Possibilities Continue to Move Forward

October 19, 2015 by 1 Comment

On July 14, 2015, the United States, the European Union, and other negotiators concluded a deal with Iran called the “Joint Comprehensive Plan of Action” (JCPOA).  The purpose of this deal was to ensure that Iran’s nuclear program will be exclusively peaceful, and to open up trade with Iran.

Yesterday, Sunday October 18, 2015 was the “Adoption Day” under the JCPOA.  This is the day on which the JCPOA becomes effective.  Starting today, US government officials are acting to make the necessary preparations for implementation of their JCPOA commitments.

In connection with Adoption Day, yesterday, the President issued a memorandum directing the Secretary of State, the Secretary of the Treasury, the Secretary of Commerce, and the Secretary of Energy to take all appropriate preparatory measures to ensure the prompt and effective implementation of the U.S. commitments set forth in the JCPOA upon Iran’s fulfillment of the requisite conditions.  In particular, the President directed the agencies to take steps to give effect to the U.S. commitments with respect to sanctions described in the JCPOA beginning on Implementation Day, which will occur only once the IAEA verifies that Iran has implemented key nuclear-related measures described in the JCPOA.

In addition, on October 18, 2015, the Secretary of State issued contingent waivers of certain sanctions provisions.  These waivers are not currently in effect and will only take effect on Implementation Day.

Until Implementation Day is reached, it is still possible to use Treasury Department licenses to ship aircraft parts to Iran.

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