I. General Notes
In reviewing the JCPOA and this guidance, members of the regulated public should be aware of
the following:
The sanctions-related commitments described in the JCPOA are directed towards non-
U.S. persons,7 and except for the commitments described in section 5 of Annex II of the
JCPOA, do not apply to U.S. persons.8
The sanctions commitments described in the JCPOA and this guidance do not apply to
transactions that involve persons who remain or are placed on the SDN List.
Transactions involving such persons remain sanctionable after Implementation Day.
The USG commitment to lift sanctions described in the JCPOA is without prejudice to
sanctions that may apply under legal provisions not included within the scope of section
4 of Annex II of the JCPOA. As further detailed in section VII below, the USG retains the
authority to continue imposing sanctions under authorities not included within the scope
of section 4 of Annex II, including those used to address Iran’s: support for terrorism,
support for persons involved in human rights abuses in Syria or for the Government of
Syria, support for persons threatening the peace, security, or stability of Yemen, human
rights abuses, and ballistic missile program.9
Category Archives: Joint Comprehensive Plan of Action (JCPOA) Updates
Joint Comprehensive Plan of Action (JCPOA) Updates
JCPOA Implementation Day Guidance: Background
The JCPOA Implementation Day Guidance document consists of a background section, then 7 specialized sections. The whole is a 42 page PDF, so we'll break it up into those 8 pieces (and possibly more for Section II, which is particularly lengthy). For brevity, I'm leaving out the footnotes.
Here's the background:
On July 14, 2015, the P5+1 (China, France, Germany, Russia, the United Kingdom, and theUnited States), the European Union (EU), and Iran reached a Joint Comprehensive Plan ofAction (JCPOA) to ensure that Iran’s nuclear program will be exclusively peaceful. The JCPOAbuilds on the foundation of the Joint Plan of Action (JPOA) of November 24, 2013, and thepolitical framework announced in Lausanne on April 2, 2015.
On January 16, 2016, upon confirmation by the Secretary of State that the International AtomicEnergy Agency (IAEA) had verified that Iran had implemented the nuclear-related measuresdescribed in sections 15.1 to 15.11 of Annex V of the JCPOA, the United States lifted the U.S.nuclear-related sanctions described in sections 17.1 to 17.2 of Annex V of the JCPOA.1Consequently, January 16, 2016 is the day referred to as “Implementation Day” in paragraph34.iii of the Main Text of the JCPOA.2 The U.S. Department of the Treasury’s Office of ForeignAssets Control (OFAC) has updated its website to notify the public of certain steps the UnitedStates has taken to fulfill Implementation Day sanctions commitments.
As set out in sections 4.1 to 4.7 of Annex II and section 17.1 to 17.2 of Annex V of the JCPOA,the United States government (USG) has lifted nuclear-related secondary sanctions3 on: Iran’sfinancial, banking, energy, petrochemical, shipping, shipbuilding, and automotive sectors; Iran’sport operators; the provision of insurance, re-insurance and underwriting services in connectionwith activities that are consistent with the JCPOA; Iran’s trade in gold and other precious metals;trade with Iran in graphite, raw or semi-finished metals such as aluminum and steel, coal, andcertain software in connection with activities that are consistent with the JCPOA; and theprovision of associated services for each of the categories above. As set out in section 4.8.1 ofAnnex II and section 17.3 of Annex V of the JCPOA, the USG also removed the individuals andentities listed in Attachment 3 to Annex II of the JCPOA from OFAC’s List of SpeciallyDesignated Nationals and Blocked Persons (SDN List), Foreign Sanctions Evaders List (FSEList), and/or Non-SDN Iran Sanctions Act List (NS-ISA List), as appropriate.
In addition, as set out in section 5 of Annex II and section 17.5 of Annex V of the JCPOA, onImplementation Day, the USG took steps to: (i) allow for the export, reexport, sale, lease ortransfer of commercial passenger aircraft and related parts and services to Iran for exclusivelycivil, commercial passenger aviation end-use; (ii) license non-U.S. entities that are owned orcontrolled by a U.S. person (“U.S.-owned or -controlled foreign entities”) to engage in activities that are consistent with the JCPOA and applicable U.S. laws and regulations; and (iii) license theimportation into the United States of Iranian-origin carpets and foodstuffs, including pistachiosand caviar. With the exception of the three categories of activities described above, none of thesanctions-related commitments outlined in this guidance apply to U.S. persons, and U.S. persons,including U.S. companies, continue to be broadly prohibited from engaging in transactions ordealings with Iran and the Government of Iran unless such activities are exempt from regulationor authorized by OFAC.4
To implement the commitments under sections 17.1 to 17.5 of Annex V of the JCPOA, the USG:(i) issued, on Adoption Day,5 waivers of relevant statutory sanctions authorities, which becameeffective on Implementation Day; (ii) removed, on Implementation Day, the individuals andentities set out in Attachment 3 to Annex II of the JCPOA from the SDN List, FSE List, and/orNS-ISA List, as appropriate; (iii) issued, on Implementation Day, an Executive order (E.O.) thatrevoked E.O.s 13574, 13590, 13622 and 13645, and sections 5-7 and 15 of E.O. 13628; and (iv)issued, on Implementation Day, a Statement of Licensing Policy and two general licenses.
After Implementation Day, the next major milestone in the JCPOA is Transition Day. TransitionDay will occur 8 years from Adoption Day or upon a report from the Director General of theIAEA to the IAEA Board of Governors and in parallel to the United Nations Security Council(UNSC) stating that the IAEA has reached the Broader Conclusion that all nuclear material inIran remains in peaceful activities, whichever is earlier. As set out in section 21 of Annex V ofthe JCPOA, on Transition Day, the USG will seek to terminate, or modify to effectuate thetermination of, relevant statutory provisions set forth in sections 4.1 to 4.7 and 4.9 of Annex IIand will remove the individuals and entities set forth in Attachment 4 to Annex II of the JCPOAfrom the SDN List and/or FSE List.6 The USG will issue additional guidance related to thesecommitments prior to Transition Day.
For additional information, please see section A of OFAC’s Frequently Asked Questions Relatingto the Lifting of Certain U.S. Sanctions Under the JCPOA on Implementation Day (JCPOAFAQs).
This guidance document is organized into seven sections. Section I contains introductory notesregarding the sanctions lifting under the JCPOA. Section II reviews the various nuclear-relatedsecondary sanctions that were lifted on Implementation Day, explains how those sanctions werelifted, and describes the effect of the sanctions lifting. Section III addresses the sanctions listremovals that occurred on Implementation Day, and what it means for parties engaging intransactions or activities with individuals and entities that were removed from the relevant sanctions lists. Section IV describes other U.S. commitments under the JCPOA, includingcommitments with respect to (i) exports of commercial passenger aircraft and related parts andservices for commercial passenger aviation, (ii) the ability of U.S.-owned or -controlled foreignentities to engage in activities that are consistent with the JCPOA and U.S. law, and (iii) importsof Iranian-origin carpets and foodstuffs into the United States. Section V addresses the U.S.commitment to terminate four E.O.s and part of a fifth. Section VI provides an overview of thewaiver determinations and findings with respect to certain statutory sanctions issued toimplement U.S. Implementation Day sanctions commitments under the JCPOA. Finally, SectionVII provides a list of key legal authorities that are outside the scope of the JCPOA and thatremain in place after Implementation Day.
Link:
JCPOA Implementaton Day Guidance document
January 16, 2016: OFAC’s JCPOA Statement and related documents
JCPOA Implementation 1/16/2016Implementation Day Statement:On July 14, 2015, the P5+1 (China, France, Germany, Russia, the United Kingdom, and the United States), the European Union, and Iran reached a Joint Comprehensive Plan of Action (JCPOA) to ensure that Iran’s nuclear program will be exclusively peaceful. October 18, 2015 marked Adoption Day of the JCPOA, the date on which the JCPOA came into effect and participants began taking steps necessary to implement their JCPOA commitments. Today, January 16, 2016, marks Implementation Day of the JCPOA. On this historic day, the International Atomic Energy Agency (IAEA) has verified that Iran has implemented its key nuclear-related measures described in the JCPOA, and the Secretary State has confirmed the IAEA’s verification. As a result of Iran verifiably meeting its nuclear commitments, the United States is today lifting nuclear-related sanctions on Iran, as described in the JCPOA.In connection with reaching Implementation Day, today the Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued several documents. Specifically, OFAC posted to its website: Guidance Relating to the Lifting of Certain Sanctions Pursuant to the Joint Comprehensive Plan of Action on Implementation Day; Frequently Asked Questions Relating to the Lifting of Certain U.S. Sanctions Under the Joint Comprehensive Plan of Action (JCPOA) on Implementation Day; General License H: Authorizing Certain Transactions relating to Foreign Entities Owned or Controlled by a United States Person; and a Statement of Licensing Policy for Activities Related to the Export or Re-Export to Iran of Commercial Passenger Aircraft and Related Parts and Services. The aforementioned documents are effective today, January 16, 2015.In addition, OFAC has submitted for publication in the Federal Register a final rule adding a general license under the Iranian Transactions and Sanctions Regulations, 31 C.F.R. part 560, relating to the importation into the United States of Iranian-origin carpets and foodstuffs, including pistachios and caviar ; this general license will be effective upon publication in the Federal Register.OFAC has also published to its website additional information regarding actions to give effect to other JCPOA commitments, including removals from the Specially Designated Nationals and Blocked Persons List, the Foreign Sanctions Evaders List, and/or the Non-SDN Iran Sanctions Act List, as appropriate. In addition, OFAC has made available on its website a list of persons identified as blocked solely pursuant to Executive Order 13599 (“E.O. 13599 List”), which consists of persons that OFAC previously identified as meeting the definition of the Government of Iran or an Iranian financial institution. Information regarding these changes to OFAC’s sanctions lists is available on OFAC’s Recent Actions website. This information will be published subsequently in the Federal Register.Implementation Day also marks the close of the Joint Plan of Action of November 24, 2013, as extended (JPOA), including the provision of sanctions relief pursuant to the JPOA.Effective Implementation Day, all specific licenses that: (1) were issued pursuant to OFAC’s Second Amended Statement of Licensing Policy on Activities Related to the Safety of Iran’s Civil Aviation Industry, and (2) have an expiration date on or before July 14, 2015, are hereby authorized to remain in effect according to their terms until May 31, 2016.Last Updated: 1/16/2016 4:45 PM
Given the complexity of this all, Mr. Watchlist will be publishing all of these documents, in logical chunks, over the next few weeks.
Links:
Commercial Passenger Aircraft, Parts and Services Licensing Policy
Final rule regarding Iranian foodstuffs and carpets
Full set of Implementation Day list changes
October 23, 2015: Another Finnish regulatory update
- Financial sanctions
- Iran – JCPOA
- Council Decision (CFSP) 2015/1863
- Council Regulation (EU) 2015/1861
- Council Implementing Regulation (EU) 2015/1862
- Syria
- Al-Qaida organization
- Export and import restrictions
- Iran – JCPOA
- Travel Restrictions
Link:
October 22, 2015: New FAQ regarding Iranian Diplomatic Missions
On the 22nd, OFAC issued a new FAQ regarding the JCPOA and delivery of routine goods and services by non-US persons to diplomatic missions of the Iranian government:
455. Is the provision of routine goods and services by non-U.S. persons to diplomatic missions of the Government of Iran located outside the United States sanctionable under U.S. law?
The provision of goods and services for the conduct of the official business of the diplomatic missions of the Government of Iran located outside the United States or for the personal use of the employees of the missions, including financial services such as the opening of a bank account, by a non-U.S. person would not be sanctionable under U.S. law, provided that such goods and services do not involve persons on OFAC’s List of Specially Designated Nationals and Blocked Persons (other than any political subdivision, agency, or instrumentality of the Government of Iran listed solely pursuant to Executive Order 13599 or any Iranian depository institution listed solely pursuant to Executory Order 13599) or other activities that would be sanctionable under U.S. law.
Further, the provision of goods and services to the diplomatic missions of the Government of Iran outside the United States cannot involve U.S. persons or U.S.-owned or -controlled foreign entities, or the provision to the Government of Iran of goods, technology, or services subject to the prohibitions of 31 C.F.R. §§ 560.204-205, nor can related transactions transit the U.S. financial system, unless the activities and/or transactions are authorized by OFAC. [10-22-2015]
Hope that clears things up…. Domino's, you still can't deliver to an Iranian diplomatic mission, no matter how fast you get it there…
Links:
OFAC’s JCPOA FAQ document
In its entirety…
October 18, 2015
FREQUENTLY ASKED QUESTIONS RELATING TO ADOPTION DAY
UNDER THE JOINT COMPREHENSIVE PLAN OF ACTION
Q: What is Adoption Day?
A: Adoption Day, which is October 18, 2015, marks the date on which the Joint Comprehensive
Plan of Action (JCPOA) comes into effect.
Beginning on Adoption Day, JCPOA participants will start taking the steps necessary to
implement their JCPOA commitments. Importantly, Iran will now begin taking the nuclear-
related measures set forth in the JCPOA, and the United States and European Union will begin
the necessary additional work for the implementation of their commitments with respect to
sanctions under the JCPOA. Consistent with Annex V of the JCPOA, the United States issued
two documents on Adoption Day: the President issued a Memorandum to the Secretaries of
State, the Treasury, Commerce, and Energy to direct them to take all appropriate measures to
ensure the prompt and effective implementation of the U.S. commitments in the JCPOA; and the
Secretary of State issued contingent waivers of certain statutory sanctions in preparation for the
implementation of U.S. commitments with respect to sanctions under the JCPOA. Importantly,
these waivers will not take effect until confirmation by the Secretary of State that the
International Atomic Energy Agency (IAEA) has verified that Iran has implemented its key
nuclear-related measures described in the JCPOA (Implementation Day).
Q: Do the waivers that were issued on Adoption Day result in the lifting of any sanctions on
Adoption Day?
A: No. The waivers issued on Adoption Day are contingent on Iran verifiably taking key
nuclear-related steps outlined in the JCPOA, and the waivers do not take effect until the
Secretary of State has confirmed that Iran has verifiably taken those steps. Updated guidance
from the Department of the Treasury’s Office of Foreign Assets Control (OFAC) will reflect this
change once it occurs.
The only easing of sanctions in effect before Implementation Day continues to be that provided
for under the Joint Plan of Action of November 24, 2013, as extended. Until Implementation
Day, all other U.S. sanctions remain in effect, and certain activities involving Iran, such as
entering into contracts before Implementation Day with individuals and entities on OFAC’s List
of Specially Designated Nationals and Blocked Persons (SDN List), could expose the parties to
sanctions.
Q: When is Implementation Day and what will occur on that day?
A: The timing of Implementation Day and the associated sanctions lifting will depend on when
Iran fulfills its key nuclear-related commitments specified in the JCPOA. Once the IAEA
verifies that Iran has implemented these commitments under the JCPOA, the United States and the European Union will implement the first phase of their commitments with respect to the
JCPOA, as set out in Annex V of the JCPOA.On Implementation Day, the lifting of U.S. nuclear-related sanctions described in sections 17.1-
17.2 of Annex V of the JCPOA will occur. To make this happen, the contingent waivers issued
on Adoption Day by the Secretary of State will take effect as noted above, and certain Executive
orders will be terminated as provided for in the JCPOA.
OFAC intends to publish on its website prior to Implementation Day detailed guidance and
information on the implementation of U.S. commitments with respect to sanctions under the
JCPOA. OFAC will also update its website on Implementation Day to notify the public that the
easing of U.S. sanctions pursuant to the JCPOA is in effect.
Even after Implementation Day, U.S. persons will continue to be broadly prohibited from
engaging in transactions or dealings involving Iran, including the Government of Iran, with the
exception of a few additional categories of transactions that the Treasury Department’s Office of
Foreign Assets Control (OFAC) will license pursuant to the JCPOA.
Q. Would the entry by non-U.S. persons into contracts involving Iranian entities prior to
the JCPOA Implementation Day be sanctionable?
A. Until Implementation Day, all U.S. sanctions against Iran remain in effect, with the exception
of the limited relief provided for in the Joint Plan of Action, as extended. Entering into contracts
involving Iran or its government before Implementation Day may be sanctionable. In certain
circumstances, this could include contracts that are contingent on the implementation of
sanctions relief under the JCPOA, such as contracts involving individuals or entities on the SDN
List. Until Implementation Day, we will continue to vigorously enforce the sanctions that remain
in effect.
As a general matter, unless authorized by OFAC, U.S. persons are prohibited from entering into
contracts – contingent or otherwise – involving Iran or its government, including with
individuals and entities on the SDN List.
October 18, 2015: OFAC issues JCPOA Adoption Day statement and FAQ
On October 18th, OFAC issued the following statement, in addition to a new FAQ, related to the JCPOA Adoption Day:
On July 14, 2015, the P5+1, the European Union, and Iran reached a Joint Comprehensive Plan of Action (JCPOA) to ensure that Iran’s nuclear program will be exclusively peaceful. October 18, 2015 marks “Adoption Day” under the JCPOA – the day on which the JCPOA becomes effective and participants begin to make the necessary preparations for implementation of their JCPOA commitments. In connection with Adoption Day, the President today 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, the Secretary of State today issued contingent waivers of certain statutory sanctions provisions. These waivers are not currently in effect and will only take effect on Implementation Day.
Until Implementation Day is reached, the only changes to the Iran-related sanctions are those provided for in the Joint Plan of Action (JPOA) of November 24, 2013, as extended. See the August 7, 2015 revised guidance, Frequently Asked Questions, and the Third Amended Statement of Licensing Policy on Activities Related to the Safety of Iran’s Civil Aviation Industry for additional information regarding the sanctions-related commitments under the JPOA. Even after Implementation Day, U.S. persons will continue to be broadly prohibited from engaging in transactions or dealings involving Iran, including the Government of Iran, with the exception of a few specific categories of transactions that OFAC will license pursuant to the JCPOA.
The Department of the Treasury's Office of Foreign Assets Control (OFAC) issued Frequently Asked Questions relating to Adoption Day. OFAC will provide further guidance on the sanctions measures that will be lifted pursuant to the JCPOA, as well as those measures that will remain in place, prior to Implementation Day.
The FAQ will be published in separate post(s).
Links: