Today (Wednesday, January 27th), OFAC is issuing amendments to the Cuban Assets Control Regulation (CACR) in line with the December 2014 policy changes announced by President Obama “intended to further engage and empower the Cuban people and promote political, social, and economic reform in Cuba by easing sanctions related to, among others, travel, trade, humanitarian projects, and banking.”

OFAC has also issued updated Frequently Asked Questions (FAQs), and an updated Travel Guidance.

Links:

OFAC Notice

CACR Amendment

CACR FAQs

CACR Travel Guidance

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Breaking this up because it's an 18 page PDF. This will make it easier to digest…. And I'm going to skip the sections that non-lawyers will not understand with the current CACR in front of them.

Non-Agricultural Export Trade Financing

OFAC is amending section 515.533(a) to remove the former limitations on payment and
financing terms for all exports from the United States or reexports of 100 percent U.S.-origin items from a third country that are licensed or otherwise authorized by the Department of
Commerce, other than exports of agricultural items or commodities. As required by the Trade
Sanctions Reform and Export Enhancement Act of 2000, 22 U.S.C. 7207(b)(1), such agricultural
exports continue to be authorized only if one of the payment and financing terms specified in the
statute are used. OFAC also is amending section 515.584 to add an authorization for depository
institutions to provide financing for such authorized exports and making a conforming change to
section 515.421.

Travel and Related Services

Carrier services by air. In parallel with the Department of Commerce’s amendments
relating to the safety of civil aviation, OFAC is amending section 515.572 to authorize the entry
into blocked space, code-sharing, and leasing arrangements to facilitate the provision of carrier
services by air authorized pursuant to section 515.572(a)(2), including the entry into such
arrangements with a national of Cuba.

Temporary sojourn. OFAC is amending section 515.533 to authorize travel-related and
other transactions directly incident to the facilitation of the temporary sojourn of aircraft and
vessels as authorized by the Department of Commerce for travel between the United States and
Cuba, including by certain personnel required for normal operation and service on board a vessel
or aircraft or to provide services to a vessel in port or aircraft on the ground.

Public performances, clinics, workshops, athletic and other competitions, and exhibitions.
OFAC is amending section 515.567 to authorize travel-related and other transactions to organize
amateur and semi-professional international sports federation competitions and public
performances, clinics, workshops, other athletic or non-athletic competitions, and exhibitions in
Cuba. OFAC is also removing the existing requirements for certain events that all U.S. profits
from the event after costs be donated to an independent nongovernmental organization in Cuba
or a U.S.-based charity and that workshops and clinics be organized and run, at least in part, by
the authorized traveler.

Humanitarian projects. OFAC is amending section 515.575 to expand the list of
authorized humanitarian projects to include disaster preparedness and response.

Link:

CACR Amendments

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The firm provided architectural design services for a Cuban hotel between 2009 and 2010, for which it was paid $284,515. The settlement? Roughly half – $140,000, for a non self-disclosed, non-egregious case. The base penalty, which was the statutory maximum, was $265,000.

Here is what OFAC considered in making its decision:

• Senior managers at WATG-UK performed the primary work related to
  the project;
• The apparent violations caused significant harm to the Cuba sanctions program
  objectives because WATG-UK provided more than $350,000 in architecture and design services
  in support of Cuba’s tourism industry;
• WATG is a relatively large and sophisticated
  multinational architectural design company;
• WATG has no prior sanctions history, including
  receipt of a penalty notice or Finding of Violation in the five years preceding the earliest date of
  these transactions;
• WATG had no OFAC compliance program at the time of the apparent
  violations;
• WATG took remedial action by conducting a global, comprehensive compliance
  review, submitting a disclosure of other transactions to OFAC, appointing a compliance officer,
  conducting global training of its personnel, and instituting a compliance program to prevent
  future apparent violations; and
• WATG agreed to toll the statute of limitations for a total of 877
  days.

Link:

OFAC Enforcement Information

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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

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Some flavor from the amendments document, in relatively clear English:

(d) General license for travel-related transactions incident to exportation or reexportation
of certain items. (1) The travel-related transactions set forth in § 515.560(c) and such additional
transactions as are directly incident to the conduct of market research, commercial marketing,
sales or contract negotiation, accompanied delivery, installation, leasing, or servicing in Cuba of
items consistent with the export or reexport licensing policy of the Department of Commerce are
authorized, provided that the traveler’s schedule of activities does not include free time or
recreation in excess of that consistent with a full-time schedule.

(2) The travel-related transactions set forth in § 515.560(c) and such additional
transactions as are directly incident to the facilitation of the temporary sojourn of aircraft and
vessels as authorized by 15 CFR 740.15 (License Exception Aircraft, Vessels and Spacecraft) or
pursuant to other authorization by the Department of Commerce for travel between the United
States and Cuba authorized pursuant to this part, including travel-related transactions by
personnel who are persons subject to U.S. jurisdiction and who are required for normal operation
and service on board a vessel or aircraft, as well as personnel who are persons subject to U.S.
jurisdiction and who are required to provide services to a vessel in port or aircraft on the ground,
provided that:

(i) The aircraft or vessel must be transporting individuals whose travel between the
United States and Cuba is authorized pursuant to any section of this part other than paragraph
(d)(2) of this section; and

(ii) Such travel-related transactions by such personnel are limited to the duration and
scope of their duties in relation to the particular authorized temporary sojourn.

and:

§ 515.545 Transactions related to information and informational materials.

(a) Transactions relating to the creation, dissemination, artistic or other substantive
alteration, or enhancement of informational materials are authorized, including employment of
Cuban nationals and remittance of royalties or other payments in connection with such
transactions. This section authorizes marketing related to the dissemination of such
informational materials but does not authorize other marketing or business consulting services.

(b) General license. (1) The travel-related transactions set forth in § 515.560(c) and such
additional transactions as are directly incident to the exportation, importation, or transmission of
information or informational materials as defined in § 515.332 are authorized, provided that the
traveler’s schedule of activities does not include free time or recreation in excess of that
consistent with a full-time schedule.

(2) The travel-related transactions set forth in § 515.560(c) and such additional
transactions as are directly incident to professional media or artistic productions of information
or informational materials for exportation, importation, or transmission, including the filming or
production of media programs (such as movies and television programs), the recording of music,
and the creation of artworks in Cuba, are authorized, provided that the traveler is regularly
employed in or has demonstrated professional experience in a field relevant to such professional
media or artistic productions, and that the traveler’s schedule of activities does not include free
time or recreation in excess of that consistent with a full-time schedule.

and:

§ 515.564 Professional research and professional meetings in Cuba.

(2) Professional meetings. The travel-related transactions set forth in § 515.560(c) and
such additional transactions as are directly incident to travel to Cuba to attend or organize
professional meetings or conferences in Cuba are authorized, provided that:

**** *

(ii) For a traveler:

(A) Attending a professional meeting or conference, the purpose of the meeting or
conference directly relates to the traveler’s profession, professional background, or area of
expertise, including area of graduate-level full-time study;

(B) Organizing a professional meeting or conference on behalf of an entity, either the
traveler’s profession must be related to the organization of professional meetings or conferences
or the traveler must be an employee or contractor of an entity that is organizing the professional
meeting or conference.

**** *

(iv) The traveler’s schedule of activities does not include free time or recreation in
excess of that consistent with a full-time schedule of attendance at, or organization of,
professional meetings or conferences.

Note to § 515.564(a)(2): Transactions incident to the organization of professional
meetings or conferences include marketing related to such meetings or conferences in Cuba.

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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

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Following changes to the EU dual-use list, the following Open General Export Licences have been amended and republished:

Open general export licence (export for repair/replacement under warranty: dual-use items)

Open general export licence (export after repair/replacement under warranty: dual-use items)

Open general export licence (dual-use items: Hong Kong Special Administrative Region)

Open general export licence (technology for dual-use items)

Open general export licence (X)

Open general export licence (Turkey)

Open general export licence (export after exhibition: dual-use items)

For more details see Notice to Exporters: 2015/30.

Additionally, The Open General Trade Control Licence (Trade and Transportation: Small Arms and Light Weapons) has been updated to reflect the expansion of the list of items subject to Category B of the trade controls (trafficking and brokering):

Open general trade control licence (trade and transportation: small arms and light weapons)

The OGEL (Vintage Aircraft) has been updated to remove ML10b from the goods schedule, to update the text to refer to the Arts Council and to extend the time-period by which goods must be exported under this licence to six months (rather than three months) for consistency purposes.

Open general export licence (vintage aircraft)

Link:

Notice to Exporters 2016/06

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§ 515.567 Public performances, clinics, workshops, athletic and other competitions, and
exhibitions.

(a) General license for amateur and semi-professional international sports federation
competitions. The travel-related transactions set forth in § 515.560(c) and such other
transactions as are directly incident to participation in athletic competitions in Cuba by amateur
or semi-professional athletes or athletic teams, or organization of such competitions, are
authorized, provided that:

**** *

(b) General license for public performances, clinics, workshops, other athletic or non-
athletic competitions, and exhibitions. The travel-related transactions set forth in § 515.560(c)
and such other transactions as are directly incident to participation in or organization of a public performance, clinic, workshop, athletic competition not covered by paragraph (a) of this section,
non-athletic competition, or exhibition in Cuba by participants in or organizers of such activities
are authorized, provided that the event is open for attendance, and in relevant situations
participation, by the Cuban public.

Example 1 to § 515.567(a) and (b): An amateur baseball team wishes to travel to Cuba to
compete against a Cuban team in a baseball game in Cuba. The game will not be held under the
auspices of the international sports federation for baseball. The baseball team's activities
therefore would not qualify for the general license in paragraph (a). The game will, however, be
open to the Cuban public. The baseball team's activities would qualify for the general license in
paragraph (b).

Example 2 to § 515.567(a) and (b): A U.S. concert promoter wishes to organize a
musical event in Cuba that would be open to the public and feature U.S. musical groups. The
organizing of the musical event in Cuba by the U.S. concert promoter and the participation by
U.S. musical groups in the event would qualify for the general license in paragraph (b).

**** *

Note 2 to § 515.567(a) and (b): Transactions incident to the organization of amateur and
semi-professional international sports federation competitions and public performances, clinics,
workshops, other athletic or non-athletic competitions, and exhibitions include marketing related
to such events in Cuba.

and

§ 515.572 Authorization to provide travel services, carrier services, and remittance
forwarding services.

(a) * * *

(2) Authorization to provide carrier services. (i) Persons subject to U.S. jurisdiction are
authorized to provide carrier services to, from, or within Cuba in connection with travel or
transportation, directly or indirectly, between the United States and Cuba of persons, baggage, or
cargo authorized pursuant to this part.

(ii) The entry into blocked space, code-sharing, or leasing arrangements to facilitate the
provision of carrier services by air authorized pursuant to section 515.572(a)(2) is authorized,
including the entry into such arrangements with a national of Cuba.

and

§ 515.575 Humanitarian projects.

**** *

(b) Authorized humanitarian projects. The following projects are authorized by
paragraph (a) of this section: medical and health-related projects; construction projects intended
to benefit legitimately independent civil society groups; disaster preparedness, relief, and
response; historical preservation; environmental projects; projects involving formal or non-
formal educational training, within Cuba or off-island, on the following topics: entrepreneurship
and business, civil education, journalism, advocacy and organizing, adult literacy, or vocational
skills; community-based grassroots projects; projects suitable to the development of small-scale
private enterprise; projects that are related to agricultural and rural development that promote
independent activity; microfinancing projects, except for loans, extensions of credit, or other
financing prohibited by § 515.208; and projects to meet basic human needs.

and finally:

§ 515.584 Certain financial transactions involving Cuba.

**** *

(f) Depository institutions, as defined in § 515.333, are authorized to provide financing
for exports or reexports of items, other than agricultural items or commodities, authorized
pursuant to § 515.533, including issuing, advising, negotiating, paying, or confirming letters of
credit (including letters of credit issued by a financial institution that is a national of Cuba),
accepting collateral for issuing or confirming letters of credit, and processing documentary
collections.

Again, I have left out sections that cannot be read out of context (e.g. Items that then refer to a list of items not in the amendment).

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Breaking this up because it's an 18 page PDF. This will make it easier to digest…. And I'm going to skip the sections that non-lawyers will not understand with the current CACR in front of them.

Non-Agricultural Export Trade Financing

OFAC is amending section 515.533(a) to remove the former limitations on payment and
financing terms for all exports from the United States or reexports of 100 percent U.S.-origin items from a third country that are licensed or otherwise authorized by the Department of
Commerce, other than exports of agricultural items or commodities. As required by the Trade
Sanctions Reform and Export Enhancement Act of 2000, 22 U.S.C. 7207(b)(1), such agricultural
exports continue to be authorized only if one of the payment and financing terms specified in the
statute are used. OFAC also is amending section 515.584 to add an authorization for depository
institutions to provide financing for such authorized exports and making a conforming change to
section 515.421.

Travel and Related Services

Carrier services by air. In parallel with the Department of Commerce’s amendments
relating to the safety of civil aviation, OFAC is amending section 515.572 to authorize the entry
into blocked space, code-sharing, and leasing arrangements to facilitate the provision of carrier
services by air authorized pursuant to section 515.572(a)(2), including the entry into such
arrangements with a national of Cuba.

Temporary sojourn. OFAC is amending section 515.533 to authorize travel-related and
other transactions directly incident to the facilitation of the temporary sojourn of aircraft and
vessels as authorized by the Department of Commerce for travel between the United States and
Cuba, including by certain personnel required for normal operation and service on board a vessel
or aircraft or to provide services to a vessel in port or aircraft on the ground.

Public performances, clinics, workshops, athletic and other competitions, and exhibitions.
OFAC is amending section 515.567 to authorize travel-related and other transactions to organize
amateur and semi-professional international sports federation competitions and public
performances, clinics, workshops, other athletic or non-athletic competitions, and exhibitions in
Cuba. OFAC is also removing the existing requirements for certain events that all U.S. profits
from the event after costs be donated to an independent nongovernmental organization in Cuba
or a U.S.-based charity and that workshops and clinics be organized and run, at least in part, by
the authorized traveler.

Humanitarian projects. OFAC is amending section 515.575 to expand the list of
authorized humanitarian projects to include disaster preparedness and response.

Link:

CACR Amendments

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The firm provided architectural design services for a Cuban hotel between 2009 and 2010, for which it was paid $284,515. The settlement? Roughly half – $140,000, for a non self-disclosed, non-egregious case. The base penalty, which was the statutory maximum, was $265,000.

Here is what OFAC considered in making its decision:

• Senior managers at WATG-UK performed the primary work related to
  the project;
• The apparent violations caused significant harm to the Cuba sanctions program
  objectives because WATG-UK provided more than $350,000 in architecture and design services
  in support of Cuba’s tourism industry;
• WATG is a relatively large and sophisticated
  multinational architectural design company;
• WATG has no prior sanctions history, including
  receipt of a penalty notice or Finding of Violation in the five years preceding the earliest date of
  these transactions;
• WATG had no OFAC compliance program at the time of the apparent
  violations;
• WATG took remedial action by conducting a global, comprehensive compliance
  review, submitting a disclosure of other transactions to OFAC, appointing a compliance officer,
  conducting global training of its personnel, and instituting a compliance program to prevent
  future apparent violations; and
• WATG agreed to toll the statute of limitations for a total of 877
  days.

Link:

OFAC Enforcement Information

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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

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Some flavor from the amendments document, in relatively clear English:

(d) General license for travel-related transactions incident to exportation or reexportation
of certain items. (1) The travel-related transactions set forth in § 515.560(c) and such additional
transactions as are directly incident to the conduct of market research, commercial marketing,
sales or contract negotiation, accompanied delivery, installation, leasing, or servicing in Cuba of
items consistent with the export or reexport licensing policy of the Department of Commerce are
authorized, provided that the traveler’s schedule of activities does not include free time or
recreation in excess of that consistent with a full-time schedule.

(2) The travel-related transactions set forth in § 515.560(c) and such additional
transactions as are directly incident to the facilitation of the temporary sojourn of aircraft and
vessels as authorized by 15 CFR 740.15 (License Exception Aircraft, Vessels and Spacecraft) or
pursuant to other authorization by the Department of Commerce for travel between the United
States and Cuba authorized pursuant to this part, including travel-related transactions by
personnel who are persons subject to U.S. jurisdiction and who are required for normal operation
and service on board a vessel or aircraft, as well as personnel who are persons subject to U.S.
jurisdiction and who are required to provide services to a vessel in port or aircraft on the ground,
provided that:

(i) The aircraft or vessel must be transporting individuals whose travel between the
United States and Cuba is authorized pursuant to any section of this part other than paragraph
(d)(2) of this section; and

(ii) Such travel-related transactions by such personnel are limited to the duration and
scope of their duties in relation to the particular authorized temporary sojourn.

and:

§ 515.545 Transactions related to information and informational materials.

(a) Transactions relating to the creation, dissemination, artistic or other substantive
alteration, or enhancement of informational materials are authorized, including employment of
Cuban nationals and remittance of royalties or other payments in connection with such
transactions. This section authorizes marketing related to the dissemination of such
informational materials but does not authorize other marketing or business consulting services.

(b) General license. (1) The travel-related transactions set forth in § 515.560(c) and such
additional transactions as are directly incident to the exportation, importation, or transmission of
information or informational materials as defined in § 515.332 are authorized, provided that the
traveler’s schedule of activities does not include free time or recreation in excess of that
consistent with a full-time schedule.

(2) The travel-related transactions set forth in § 515.560(c) and such additional
transactions as are directly incident to professional media or artistic productions of information
or informational materials for exportation, importation, or transmission, including the filming or
production of media programs (such as movies and television programs), the recording of music,
and the creation of artworks in Cuba, are authorized, provided that the traveler is regularly
employed in or has demonstrated professional experience in a field relevant to such professional
media or artistic productions, and that the traveler’s schedule of activities does not include free
time or recreation in excess of that consistent with a full-time schedule.

and:

§ 515.564 Professional research and professional meetings in Cuba.

(2) Professional meetings. The travel-related transactions set forth in § 515.560(c) and
such additional transactions as are directly incident to travel to Cuba to attend or organize
professional meetings or conferences in Cuba are authorized, provided that:

**** *

(ii) For a traveler:

(A) Attending a professional meeting or conference, the purpose of the meeting or
conference directly relates to the traveler’s profession, professional background, or area of
expertise, including area of graduate-level full-time study;

(B) Organizing a professional meeting or conference on behalf of an entity, either the
traveler’s profession must be related to the organization of professional meetings or conferences
or the traveler must be an employee or contractor of an entity that is organizing the professional
meeting or conference.

**** *

(iv) The traveler’s schedule of activities does not include free time or recreation in
excess of that consistent with a full-time schedule of attendance at, or organization of,
professional meetings or conferences.

Note to § 515.564(a)(2): Transactions incident to the organization of professional
meetings or conferences include marketing related to such meetings or conferences in Cuba.

Posted with Blogsy

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

Posted with Blogsy

Following changes to the EU dual-use list, the following Open General Export Licences have been amended and republished:

Open general export licence (export for repair/replacement under warranty: dual-use items)

Open general export licence (export after repair/replacement under warranty: dual-use items)

Open general export licence (dual-use items: Hong Kong Special Administrative Region)

Open general export licence (technology for dual-use items)

Open general export licence (X)

Open general export licence (Turkey)

Open general export licence (export after exhibition: dual-use items)

For more details see Notice to Exporters: 2015/30.

Additionally, The Open General Trade Control Licence (Trade and Transportation: Small Arms and Light Weapons) has been updated to reflect the expansion of the list of items subject to Category B of the trade controls (trafficking and brokering):

Open general trade control licence (trade and transportation: small arms and light weapons)

The OGEL (Vintage Aircraft) has been updated to remove ML10b from the goods schedule, to update the text to refer to the Arts Council and to extend the time-period by which goods must be exported under this licence to six months (rather than three months) for consistency purposes.

Open general export licence (vintage aircraft)

Link:

Notice to Exporters 2016/06

Posted with Blogsy

§ 515.567 Public performances, clinics, workshops, athletic and other competitions, and
exhibitions.

(a) General license for amateur and semi-professional international sports federation
competitions. The travel-related transactions set forth in § 515.560(c) and such other
transactions as are directly incident to participation in athletic competitions in Cuba by amateur
or semi-professional athletes or athletic teams, or organization of such competitions, are
authorized, provided that:

**** *

(b) General license for public performances, clinics, workshops, other athletic or non-
athletic competitions, and exhibitions. The travel-related transactions set forth in § 515.560(c)
and such other transactions as are directly incident to participation in or organization of a public performance, clinic, workshop, athletic competition not covered by paragraph (a) of this section,
non-athletic competition, or exhibition in Cuba by participants in or organizers of such activities
are authorized, provided that the event is open for attendance, and in relevant situations
participation, by the Cuban public.

Example 1 to § 515.567(a) and (b): An amateur baseball team wishes to travel to Cuba to
compete against a Cuban team in a baseball game in Cuba. The game will not be held under the
auspices of the international sports federation for baseball. The baseball team's activities
therefore would not qualify for the general license in paragraph (a). The game will, however, be
open to the Cuban public. The baseball team's activities would qualify for the general license in
paragraph (b).

Example 2 to § 515.567(a) and (b): A U.S. concert promoter wishes to organize a
musical event in Cuba that would be open to the public and feature U.S. musical groups. The
organizing of the musical event in Cuba by the U.S. concert promoter and the participation by
U.S. musical groups in the event would qualify for the general license in paragraph (b).

**** *

Note 2 to § 515.567(a) and (b): Transactions incident to the organization of amateur and
semi-professional international sports federation competitions and public performances, clinics,
workshops, other athletic or non-athletic competitions, and exhibitions include marketing related
to such events in Cuba.

and

§ 515.572 Authorization to provide travel services, carrier services, and remittance
forwarding services.

(a) * * *

(2) Authorization to provide carrier services. (i) Persons subject to U.S. jurisdiction are
authorized to provide carrier services to, from, or within Cuba in connection with travel or
transportation, directly or indirectly, between the United States and Cuba of persons, baggage, or
cargo authorized pursuant to this part.

(ii) The entry into blocked space, code-sharing, or leasing arrangements to facilitate the
provision of carrier services by air authorized pursuant to section 515.572(a)(2) is authorized,
including the entry into such arrangements with a national of Cuba.

and

§ 515.575 Humanitarian projects.

**** *

(b) Authorized humanitarian projects. The following projects are authorized by
paragraph (a) of this section: medical and health-related projects; construction projects intended
to benefit legitimately independent civil society groups; disaster preparedness, relief, and
response; historical preservation; environmental projects; projects involving formal or non-
formal educational training, within Cuba or off-island, on the following topics: entrepreneurship
and business, civil education, journalism, advocacy and organizing, adult literacy, or vocational
skills; community-based grassroots projects; projects suitable to the development of small-scale
private enterprise; projects that are related to agricultural and rural development that promote
independent activity; microfinancing projects, except for loans, extensions of credit, or other
financing prohibited by § 515.208; and projects to meet basic human needs.

and finally:

§ 515.584 Certain financial transactions involving Cuba.

**** *

(f) Depository institutions, as defined in § 515.333, are authorized to provide financing
for exports or reexports of items, other than agricultural items or commodities, authorized
pursuant to § 515.533, including issuing, advising, negotiating, paying, or confirming letters of
credit (including letters of credit issued by a financial institution that is a national of Cuba),
accepting collateral for issuing or confirming letters of credit, and processing documentary
collections.

Again, I have left out sections that cannot be read out of context (e.g. Items that then refer to a list of items not in the amendment).

Posted with Blogsy

A. Financial and Banking-related Sanctions

Commitment:

Section 4.1 of Annex II and section 17.1 of Annex V of the JCPOA provide for the lifting, on
Implementation Day, of secondary sanctions that apply to non-U.S. persons who engage in
certain financial and banking activities related to Iran. In particular, beginning on
Implementation Day, the following activities by non-U.S. persons are no longer sanctionable:

• Financial and banking transactions with individuals and entities set out in Attachment 3 to
  Annex II of the JCPOA, including: the Central Bank of Iran (CBI) and other specified
  Iranian financial institutions; the National Iranian Oil Company (NIOC), the Naftiran
  Intertrade Company (NICO), the National Iranian Tanker Company (NITC), and other
  specified individuals and entities identified as the Government of Iran by OFAC; and
  certain designated individuals and entities that were removed from the SDN List on
  Implementation Day (see section 4.1.1 of Annex II of the JCPOA);
• Transactions involving the Iranian rial or maintaining funds or accounts outside of Iran
  denominated in the Iranian rial (see section 4.1.2 of Annex II of the JCPOA);
• Providing U.S. bank notes to the Government of Iran (see section 4.1.3 of Annex II of the
  JCPOA);
• The purchase, subscription to, or facilitation of the issuance of Iranian sovereign debt,
  including governmental bonds (see section 4.1.5 of Annex II of the JCPOA);
• Providing specialized financial messaging services to the CBI and Iranian financial
  institutions set out in Attachment 3 to Annex II of the JCPOA (see section 4.1.6 of Annex II of the JCPOA); and
• The provision of associated services for each of the categories above (see section 4.1.7 of Annex II of the JCPOA).
• In addition, the USG has removed bilateral trade limitations on Iranian revenues held abroad, including limitations on their transfer (see section 4.1.4 of Annex II of the JCPOA).

Implementation:

To effectuate the lifting of these sanctions on Implementation Day, the USG has, in addition to
removing certain individuals and entities from the SDN List, FSE List, and NS-ISA List as
described in section III below, taken the following steps

1. Correspondent or Payable-Through Account Sanctions

a. Waived the imposition of correspondent or payable-through account sanctions
under: section 1245(d)(1) of the National Defense Authorization Act of Fiscal
Year 2012, as amended (NDAA 2012)11 (for significant financial transactions by
foreign financial institutions (FFIs)12 with the CBI)13; section 1244(d)(2) of the
Iran Freedom and Counter-Proliferation Act of 2012 (IFCA) (for significant
financial transactions by FFIs for the sale, supply, or transfer to or from Iran of
significant goods or services used in connection with the energy, shipping, or
shipbuilding sectors of Iran, including NIOC, NITC, and the Islamic Republic of
Iran Shipping Lines (IRISL)); section 1244(h)(2) of IFCA (for financial
transactions by FFIs for the sale, supply, or transfer to or from Iran of natural gas)14; section 1245(c) of IFCA (for significant financial transactions by FFIs for
the sale, supply, or transfer to or from Iran of precious metals or specified
materials (graphite, raw or semi-finished metals such as aluminum and steel, coal,
and software for integrating industrial processes) that are within the scope of the
waivers under section 1245(a)(1) of IFCA, as described in section VI below); and
section 1247(a) of IFCA.1

b. Revoked:16 E.O. 13622, including the correspondent or payable-through account
sanctions under section (1)(a), as amended by section 16 of E.O. 13645 (for FFIs
that conduct or facilitate transactions: with NIOC or NICO; for the purchase,
acquisition, sale, transport, or marketing of petroleum or petroleum products from
Iran; or for the purchase, acquisition, sale, transport, or marketing of
petrochemical products from Iran); and E.O. 13645, including the correspondent
or payable-through account sanctions under section 1(a) (for FFIs engaging in
significant transactions related to the Iranian rial and maintaining significant
funds or accounts outside the territory of Iran denominated in the Iranian rial) and
subsection 3(a)(i) (for significant transactions by FFIs on behalf of any Iranian
person on the SDN List or any other person included on the SDN List whose
property and interests in property are blocked pursuant to subsection 2(a)(i) of
E.O. 13645 or E.O. 13599).17

c. Committed to refrain from imposing sanctions under section 561.203(a) of the
Iranian Financial Sanctions Regulations, 31 C.F.R. part 561 (IFSR), for
transactions by FFIs with the CBI that are consistent with the waiver of section
1245(d)(1) of NDAA 2012.

2. Blocking Sanctions:

a. Waived the imposition of blocking sanctions under section 1244(c)(1) of IFCA18
(with respect to non-U.S. persons who knowingly provide significant financial,
material, technological, or other support to, or goods or services in support of any
activity or transaction on behalf of or for the benefit of a person determined to be
part of the energy, shipping, or shipbuilding sectors of Iran or to operate a port in
Iran, or Iranian individuals or entities set forth in Attachment 3 to Annex II of the
JCPOA).19

b. Committed to refrain from imposing discretionary blocking sanctions under
section 220(c) of the Iran Threat Reduction and Syria Human Rights Act of 2012
(TRA) on non-U.S. persons who knowingly and directly provide specialized
financial messaging services to, or knowingly enable or facilitate direct or indirect
access to such messaging services for, the CBI or any Iranian financial institution
not included on the SDN List.20
Revoked: E.O. 13622, including the blocking sanctions under section 5(a) (with
respect to persons who have materially assisted, sponsored, or provided financial,
material, or technological support for, or goods or services in support of, NIOC,
NICO, or the CBI, or the purchase or acquisition of U.S. bank notes or precious
metals by the Government of Iran); and E.O. 13645, including the blocking
sanctions under section 1(a) (for FFIs engaging in significant transactions related
to the Iranian rial or maintaining significant funds or accounts outside the territory
of Iran denominated in the Iranian rial) and subsection 2(a)(i) (with respect to
persons who have materially assisted, sponsored, or provided financial, material,
or technological support for, or goods or services to or in support of, any Iranian
person included on the SDN List or any other person included on the SDN List
whose property and interests in property are blocked pursuant to subsection
2(a)(i) of E.O. 13645 or E.O. 13599).21

3. Menu-based Sanctions:22

a. Waived the imposition of menu-based sanctions under: section 213(a) of the TRA
(with respect to non-U.S. persons who purchase, subscribe to, or facilitate the
issuance of sovereign debt of the Government of Iran, including governmental
bonds); section 1244(d)(1) of IFCA (with respect to non-U.S. persons who
knowingly sell, supply, or transfer to or from Iran significant goods or services
used in connection with the energy, shipping, or shipbuilding sectors of Iran,
including NIOC, NITC, and IRISL); sections 1245(a)(1)(A) and
1245(a)(1)(C)(i)(II) of IFCA (with respect to non-U.S. persons who sell, supply,
or transfer to or from Iran precious metals or specified materials (graphite, raw or
semi-finished metals such as aluminum and steel, coal, and software for
integrating industrial processes), subject to certain limitations as described in
section VI.A.6 below); and section 1246(a) of IFCA23 (for non-U.S. persons who
provide underwriting services, insurance, or reinsurance in connection with
activities involving Iran that are described in sections 17.1 to17.2 and 17.5 of
Annex V of the JCPOA, or to or for any individual or entity whose property and
interests in property are blocked solely pursuant to E.O. 13599).

b. Revoked E.O. 13622, including the menu-based sanctions under section 2(a)(i)-
(iii), as amended by section 16 of E.O. 13645 (for persons engaging in significant
transactions for the purchase, acquisition, sale, transport, or marketing of
petroleum, petroleum products, and petrochemical products from Iran and
successor entities of such non-U.S. persons).

Sanctions under CISADA Section 104(c)(2)(E)(ii)(I). Finally, as described in section III below,
correspondent and payable-through account sanctions under section 104(c)(2)(E)(ii)(I) of the
Comprehensive Iran Sanctions and Divestment Act of 2010, as amended (CISADA) (for FFIs
that knowingly facilitate a significant transaction or transactions or provide significant financial
services for a person whose property or interests in property are blocked in connection with
Iran’s proliferation of WMD or their means of delivery) will no longer apply to such transactions
or services for Iranian financial institutions included on Attachment 3 to Annex II of the
JCPOA.24

See section III for an overview of the sanctions list removals that occurred on Implementation
Day and section VI for an overview of the waiver determinations and findings issued in
connection with the JCPOA.

Effects of the lifting of the financial and banking-related sanctions:25

As a result of the lifting of sanctions specified in sections 4.1.1 to 4.1.7 of Annex II and section
17.1 of Annex V of the JCPOA and described in this section, beginning on Implementation Day
such sanctions, including sanctions on associated services, do not apply to non-U.S. persons who
engage in activities, including financial and banking transactions, with the Government of Iran,
the CBI, Iranian financial institutions, and other Iranian persons specified in Attachment 3 to
Annex II of the JCPOA, including the provision of loans, transfers, accounts (including the
opening and maintenance of correspondent and payable-through accounts at non-U.S. financial
institutions), investments, securities, guarantees, foreign exchange (including Iranian rial-related
transactions), letters of credit and commodity futures or options, the provision of specialized
financial messaging services and facilitation of direct or indirect access thereto, the purchase or
acquisition by the GOI of U.S. bank notes, and the purchase, subscription to, or facilitation of the
issuance of Iranian sovereign debt.26

For additional information on the financial and banking-related sanctions lifting discussed in
this subsection, please see section C of the JCPOA FAQs.

Posted with Blogsy

On Thursday, OFAC added the following 2 persons:

NOUREDDINE, Mohamad (a.k.a. NUR-AL-DIN, Muhammad Mustafa); DOB 23 Oct 1974; POB Beirut, Lebanon; nationality Lebanon; Gender Male; Passport RL0629138 (Lebanon) (individual) [SDGT] (Linked To: HIZBALLAH).

ZAHER EL DINE, Hamdi (a.k.a. ZAHREDDINE, Hamdi); DOB 20 Jul 1984; nationality Lebanon; Gender Male; Passport RL2146270 (Lebanon) (individual) [SDGT] (Linked To: HIZBALLAH).

and one entity:

TRADE POINT INTERNATIONAL S.A.R.L., 3rd Floor, Gulf Building, Block B, Hafez Al Asad Street, Airport Highway, Bir Hassan, Beirut, Lebanon; Gulf Building, 3rd Floor, Hafiz Al Asad Autostrade, Ghobeiri, Baabda, Lebanon; Registration ID 2020615 [SDGT] (Linked To: NOUREDDINE, Mohamad).

to the Specially Designated Nationals List under its anti-terrorism sanctions program.

Link:

OFAC Notice

Posted with Blogsy

It's a short one – only 3 questions. Question 1:

Which individuals may be transported between the United States and Cuba by a person
that qualifies for the general license to provide carrier services?

Persons subject to U.S. jurisdiction who are traveling to or from Cuba pursuant to a
general license under one of the 12 categories of travel listed in section 515.560 of the
Cuban Assets Control Regulations, 31 C.F.R. part 515 (CACR), or under a specific
license from OFAC may be transported between the United States and Cuba.
Cuban nationals applying for admission to the United States, as well as third-country
nationals, with a valid visa or other travel authorization1 issued by the U.S. government
may be transported to the United States from Cuba.
Cuban nationals present in the United States in a non-immigrant status or pursuant to
other non-immigrant travel authorization issued by the U.S. government may be
transported from the United States to Cuba. Cuban nationals who have taken up
residence in the United States and are licensed as unblocked nationals pursuant to 31
C.F.R. § 515.505(a)(1) are persons subject to U.S. jurisdiction and may be transported
between the United States and Cuba if they meet the criteria set out in the first bullet
above.
An individual, including a foreign national, who is traveling on official business of the
U.S. government, a foreign government, or an intergovernmental organization of which
the United States is a member or in which the United States holds observer status –
including an employee, contractor, or grantee of such government or intergovernmental
organization and any individual traveling on a diplomatic passport, as well as any close
relative, as defined in 31 C.F.R. § 515.339, accompanying the traveler — may be
transported between the United States and Cuba.
Section 515.572 of the CACR authorizes persons subject to U.S. jurisdiction to provide carrier
services to, from, or within Cuba, in connection with travel and transportation of individuals
between the United States and Cuba, directly or indirectly, authorized pursuant to the CACR.
The Commerce Department’s Bureau of Industry and Security (BIS) regulates the temporary
sojourn to Cuba of both aircraft and vessels, which in some cases is authorized by License
Exception Aircraft, Vessels and Spacecraft (AVS) but may require separate authorization by
BIS. Persons engaging in carrier services may require additional authorizations by other U.S.
government agencies. Persons subject to U.S. jurisdiction providing travel or carrier services are
required to retain for at least five years from the date of the transaction a certification from each
customer indicating the section of the CACR, or the specific license, that authorizes the person to
travel to Cuba.

Question 2:

What type of cargo may a person authorized to provide carrier services transport from the
United States to Cuba?

Section 515.533 of the CACR authorizes all transactions ordinarily incident to the export to
Cuba of items licensed or otherwise authorized by BIS. Accordingly, a person providing carrier
services for authorized travelers going from the United States to Cuba may transport cargo and
baggage accompanying an authorized traveler provided that the export of the cargo and baggage
is authorized by BIS. Additionally, a person providing carrier services for authorized travelers
going from the United States to Cuba may transport other cargo or unaccompanied baggage
whose export to Cuba is authorized by BIS.

The exportation of information and informational materials, as defined in section 515.332 of the
CACR, to Cuba from the United States is exempt from the prohibitions of the CACR.

Question 3:

What type of cargo may a person authorized to provide carrier services transport from
Cuba to the United States?

Under the CACR, an authorized traveler departing Cuba for the United States may carry as
accompanied baggage:

For persons subject to U.S. jurisdiction, up to $400 of merchandise acquired in Cuba for
personal use, of which up to $100 may be alcohol or tobacco products.
For foreign nationals, any Cuban-origin goods other than alcohol or tobacco products,
provided that such goods are not in commercial quantities and are not imported for
resale, as authorized by 31 CFR § 515.569, and up to $100 in alcohol/tobacco products
acquired in Cuba for personal use (see note to 31 C.F.R. § 515.569).
All travelers also may carry goods produced by Cuban entrepreneurs as authorized by 31
CFR § 515.582 and the State Department’s Section 515.582 List (available at
http://www.state.gov/e/eb/tfs/spi/cuba/515582/237471.htm), without monetary limitation.
A traveler who left the United States for Cuba and is now returning to the United States
also may carry any items the traveler temporarily exported to Cuba pursuant to a BIS
authorization.
Additionally, persons authorized to provide carrier services may transport from Cuba to the
United States cargo, other than accompanied baggage, the importation of which has been
authorized by general or specific license from OFAC, subject to obtaining any additional
authorization(s) that may be required by any other relevant U.S. government agency.
The importation of Cuban-origin information and informational materials, as defined in section
515.332 of the CACR, is exempt from the prohibitions of the CACR.
Imports authorized by OFAC would still be subject to other U.S. law, such as import duties.

Link:

US Treasury Cuba Travel Guidance

Posted with Blogsy

B. Sanctions Related to Insurance

Commitment:

Section 4.2 of Annex II and section 17.1 of Annex V of the JCPOA provide for the lifting, on
Implementation Day, of secondary sanctions that apply to non-U.S. persons who provide
underwriting services, insurance, or re-insurance in connection with activities consistent with the
JCPOA, including activities with individuals and entities set forth in Attachment 3 to Annex II of
the JCPOA.

Implementation:

To effectuate the lifting of these sanctions on Implementation Day, the USG, in addition to
removing certain individuals and entities from the SDN List, FSE List, and NS-ISA List as
described in section III below, took the following steps:

Correspondent or Payable-Through Account Sanctions:

a. Waived the imposition of correspondent or payable-through account sanctions
under: section 1245(d)(1) of NDAA 2012 (for significant financial transactions by
FFIs with the CBI)27; section 1244(d)(2) of IFCA (for significant financial
transactions by FFIs for the sale, supply, or transfer to or from Iran of significant
goods or services used in connection with the energy, shipping, or shipbuilding
sectors of Iran, including NIOC, NITC, and IRISL); and section 1247(a) of
IFCA.2

b. Revoked E.O. 13645, including the correspondent or payable-through account
sanctions under subsection 3(a)(i) (for significant transactions by FFIs on behalf
of any Iranian person on the SDN List or any other person included on the SDN
List whose property and interests in property are blocked pursuant to subsection
2(a)(i) of E.O. 13645 or E.O. 13599).2

c. Committed to refrain from imposing sanctions under sections 561.203(a) of the
Iranian Financial Sanctions Regulations, 31 C.F.R. part 561 (IFSR), for
transactions by FFIs with the CBI that are consistent with the waiver of section
1245(d)(1) of NDAA 2012.

Blocking Sanctions:

a. Waived the imposition of blocking sanctions under section 1244(c)(1) of IFCA30
(with respect to non-U.S. persons who knowingly provide significant financial,
material, technological, or other support to, or goods or services in support of any
activity or transaction on behalf of or for the benefit of a person determined to be
part of the energy, shipping, or shipbuilding sectors of Iran or to operate a port in
Iran, or Iranian individuals or entities set forth in Attachment 3 to Annex II of the
JCPOA).31

b. Revoked: E.O. 13622, including the blocking sanctions under section 5(a) (with
respect to persons who have materially assisted, sponsored, or provided financial,
material, or technological support for, or goods or services in support of, NIOC,
NICO, or the CBI, or the purchase or acquisition of U.S. bank notes or precious
metals by the Government of Iran); and E.O. 13645, including the blocking
sanctions under subsection 2(a)(i) (with respect to persons who have materially
assisted, sponsored, or provided financial, material, or technological support for,
or goods or services to or in support of, any Iranian person included on the SDN List or any other person included on the SDN List whose property and interests in
property are blocked pursuant to subsection 2(a)(i) of E.O. 13645 or E.O.
13599).41

3. Menu-based Sanctions:

a. Waived the imposition of menu-based sanctions under:

i. Section 5(a) of ISA (with respect to non-U.S. persons who: make
investments above specified thresholds that could directly and
significantly contribute to the maintenance or enhancement of Iran’s
ability to develop petroleum resources; knowingly sell, lease, or provide to
Iran goods, services, technology, information, or support that could
directly and significantly facilitate the maintenance or enhancement of
Iran’s domestic production of refined petroleum products; sell or provide
to Iran refined petroleum products or sell, lease, or provide to Iran goods,
services, technology, information, or support that could directly and
significantly contribute to the enhancement of Iran’s ability to import
refined petroleum products; knowingly participate in certain joint ventures
for the development of petroleum resources outside of Iran; knowingly
sell, lease, or provide to Iran goods, services, technology, information, or
support that could directly and significantly contribute to the maintenance
or enhancement of Iran’s ability to develop petroleum resources located in
Iran or domestic production of refined petrochemical products; knowingly
sell, lease, or provide to Iran goods, services, technology, or support that
could directly and significantly contribute to the maintenance or expansion
of Iran’s domestic production of petrochemical products; own, operate, or
control, or insure a vessel used to transport crude oil from Iran to another
country; or own, operate, or control a vessel used in a manner that
conceals the Iranian origin of crude oil or refined petroleum products
transported on the vessel);

ii. Section 212(a) of the TRA (with respect to non-U.S. persons who
knowingly provide underwriting services or insurance or reinsurance for
NIOC, NITC, or a successor entity to either company, in cases where the
transactions are for activities described in sections 4.2, 4.3, and 4.4 of
Annex II of the JCPOA);

iii. Section 1244(d)(1) of IFCA (with respect to non-U.S. persons who
knowingly sell, supply, or transfer to or from Iran significant goods or
services used in connection with the energy, shipping, or shipbuilding
sectors of Iran, including NIOC, NITC, and IRISL);

iv. Section 1245(a)(1) of IFCA (with respect to non-U.S. persons who sell,
supply, or transfer to or from Iran precious metals or specified materials
(graphite, raw or semi-finished metals such as aluminum and steel, coal,
and software for integrating industrial processes), subject to certain
limitations as described in section VI below); and

v. Section 1246(a) of IFCA42 (for non-U.S. persons who provide
underwriting services, insurance, or reinsurance in connection with
activities involving Iran that are described in sections 17.1 to 17.2 and
17.5 of Annex V of the JCPOA, or to or for any individual or entity whose
property and interests in property are blocked solely pursuant to E.O.
13599).

b. Revoked: E.O. 13574, including section 1 (providing implementation authority for
certain menu-based sanctions under ISA); E.O. 13590, including section 1
(providing for menu-based sanctions with respect to persons who knowingly sell,
lease, or provide to Iran goods, services, technology, or support that could directly
and significantly contribute to the maintenance or expansion of Iran’s domestic
production of petrochemical products); E.O. 13622, including section 2(a)(i)-(iii),
as amended by section 16 of E.O. 13645 (for persons engaging in significant
transactions for the purchase, acquisition, sale, transport, or marketing of
petroleum, petroleum products, and petrochemical products from Iran and
successor entities of such non-U.S. persons); and section 5 of E.O. 13628
(providing for menu-based sanctions with respect to persons who knowingly,
between July 1, 2010, and August 10, 2012: sold, leased, or provided to Iran
goods, services, technology, information, or support that could directly and
significantly facilitate the maintenance or expansion of Iran’s domestic production
of refined petroleum products; sold or provided to Iran refined petroleum
products; or sold, leased, or provided to Iran goods, services, technology,
information, or support that could directly and significantly contribute to the
enhancement of Iran’s ability to import refined petroleum products).

See section III for an overview of the sanctions list removals that occurred on Implementation
Day and section VI for an overview of the waiver determinations and findings issued in
connection with the JCPOA.

Effects of the lifting of sanctions on the energy and petrochemical sectors:

As a result of the lifting of sanctions specified in sections 4.3.1 to 4.3.6 of Annex II and section
17.1 of Annex V of the JCPOA and described in this section, beginning on Implementation Day
such sanctions, including sanctions on associated services, do not apply to non-U.S. persons
who: (i) are part of the energy sector of Iran; (ii) purchase, acquire, sell, transport, or market
petroleum, petroleum products (including refined petroleum products), petrochemical products,
or natural gas (including liquefied natural gas) to or from Iran; (iii) provide to Iran support, investment (including through joint ventures), goods, services (including financial services), and
technology that can be used in connection with Iran’s energy sector, the development of its
petroleum resources, and its domestic production of refined petroleum products and
petrochemical products; or (iv) engage in activities with Iran’s energy sector, including NIOC,
NITC, and NICO.

For additional information on the energy and petrochemical sector-related sanctions lifting
discussed in this subsection, please see section B of the JCPOA FAQs.

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Yesterday, OFAC added the following to the SDN List under its Sergei Magnitsky human rights abuse sanctions:

ANICHIN, Aleksey Vasilyevich (a.k.a. ANICHIN, Alexei Vasilievich); DOB 01 Dec 1949; POB Sevastopol, Ukraine (individual) [MAGNIT].

ANTONOV, Yevgeni Yuvenalievich; DOB 1955; nationality Russia (individual) [MAGNIT].

KIBIS, Boris Borisovich; DOB 20 Nov 1977; nationality Russia (individual) [MAGNIT].

LAPSHOV, Pavel Vladimirovich; DOB 07 Jul 1976; nationality Russia (individual) [MAGNIT].

URZHUMTSEV, Oleg Vyacheslavovich; DOB 22 Oct 1968; citizen Russia (individual) [MAGNIT].

Link:

OFAC Notice

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