By Joseph Spraragen | jspraragen[AT]gdlsk.com | Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP
On May 8, 2018, the President announced that the United States is withdrawing from the Joint Comprehensive Plan of Action (JCPOA), and he signed a Presidential Memorandum directing that all trade sanctions against Iran that were lifted or waived under the JCPOA shall be re-imposed as soon as possible.
In conjuncture with the President’s announcement, OFAC has posted initial guidance that includes a timetable for enforcing the restored trade sanctions. While certain waivers granting sanction relief that were in place under the JCPOA have now been revoked, the Departments of State and Treasury are establishing two “wind-down” periods to allow parties to wind-down any business activities involving Iran that will become fully prohibited and subject to enforcement at the end of each wind-down period. The two wind-down periods are for 90-days and a 180-days. By November 5, 2018, all sanctions that were lifted under the JCPOA will be restored and in full effect.
The sanctions of greatest significance to U.S. importers and exporters (and to their foreign subsidiaries) will be fully restored and enforced according to the following schedule:
90 Day Wind-Down Period Ending on August 6, 2018
• Sanctions on Iran’s trade in gold or precious metals;
• Sanctions on the direct or indirect sale, supply, or transfer to or from Iran of graphite, raw, or semi-finished metals such as aluminum and steel, coal, and software for integrating industrial processes;
• Sanctions on Iran’s automotive sector;
• Revocation of the authorization of the importation into the United States of Iranian-origin carpets and foodstuffs; and
• Revocation of the authorization of export or re-export to Iran of commercial passenger aircraft and related parts and services.
180 Day Wind-Down Period Ending on November 4, 2018
• Sanctions on Iran’s port operators, and shipping and shipbuilding sectors;
• Sanctions on petroleum-related transactions including the purchase of petroleum, petroleum products, or petrochemical products from Iran;
• Sanctions on Iran’s energy sector;
• Revocation of the authorization for U.S.-owned or -controlled foreign entities to conduct trade with the Government of Iran or persons subject to the jurisdiction of the Government of Iran that were previously authorized pursuant to General License H; and
• Re-imposition of sanctions that applied to persons removed from the List of Specially Designated Nationals and Blocked Persons (SDN List) and/or other lists maintained by the U.S. government on January 16, 2016.
This will be a developing area over the next several months. If you have specific questions regarding the Iran Sanctions, please contact Joseph Spraragen jspraragen[AT]gdlsk.com or any of our attorneys.
Compliments of Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP, a member of the EACCNY