On June 27, 2018, the US Treasury Department’s Office of Foreign Assets Control (“OFAC”) announced that it was amending the Iranian Transactions and Sanctions Regulations (“ITSR”) to revoke or narrow certain general licenses issued as part of the US sanctions relief implementing the Joint Comprehensive Plan of Action (“JCPOA”), replacing them with more limited wind-down authorizations. Importantly, OFAC stated that these actions were in furtherance of President Trump’s May 8, 2018 decision to withdraw the United States from the JCPOA. As discussed in our earlier blog post, OFAC had previously announced its intent to replace these general licenses with more limited wind-down authorizations in public guidance issued on May 8, 2018, which OFAC updated in connection with these changes.
- General License H (owned/controlled non-US entities): General License H has been revoked with immediate effect. General License H (“GL H”) previously authorized non-US entities owned or controlled by US Persons (i.e., entities organized under US law and their non-US branches; parties physically located in the United States; US citizens and permanent resident aliens wherever located or employed) to engage in Iran-related activities, subject to certain terms and conditions. Under the new general license at ITSR Section 560.537, such owned/controlled non-US entities are now authorized only to engage in transactions and activities through 11:59 pm EST on November 4, 2018 that are ordinarily incident and necessary to the wind-down of transactions and activities previously authorized by GL H, subject to the terms and conditions set out in the new general license.
- General License I (commercial passenger aircraft/parts/services): General License I has been revoked with immediate effect. General License I (“GL I”) previously authorized certain transactions by US Persons related to the negotiation of, and entry into, contingent contracts for activities eligible for authorization under the Statement of Licensing Policy for Activities Related to the Export or Re-export to Iran of Commercial Passenger Aircraft and Related Parts and Service (“JCPOA SLP”). The JCPOA SLP was rescinded on May 8, 2018. Under the new general license at ITSR Section 560.536, US Persons are now authorized only to engage in transactions and activities through 11:59 pm on August 6, 2018 that are ordinarily incident and necessary to the wind down of transactions previously authorized under GL I.
- ITSR Sections 560.534 and 560.535 (Iranian-origin carpets/foodstuffs): These general licenses at Sections 560.534 and 560.535 of the ITSR previously authorized transactions involving the importation into the United States of, and US Persons dealing in, certain Iranian-origin foodstuffs and carpets and transactions related to letters of credit and brokering services relating to those items. Under the amended versions of these ITSR general licenses, US Persons are now authorized only to engage in transactions and activities that are ordinarily incident and necessary to the wind down of such previously authorized transactions through 11:59 pm on August 6, 2018.
As noted above, the wind-down authorizations related to the now-revoked General License I and ITSR Sections 560.534 and 560.535 apply through August 6, 2018, while the wind-down authorization related to the now-revoked General License H applies through November 4, 2018.