JCPOA Implementation Day Guidance: Section VI (Waivers)

And this is how it's all going to get done – and to enable the “snap-back” if Iran breaks its side of the deal:

VI. Waivers

Commitment:

Pursuant to the U.S. commitment in section 11 of Annex V of the JCPOA, on Adoption Day, the
Secretary of State issued waiver determinations and made findings with respect to certain
statutory sanctions provisions set out in section 4 of Annex II of the JCPOA.87 By their terms,
these waivers and findings were contingent in nature; they only took effect upon confirmation by
the Secretary of State that Iran had implemented the nuclear-related measures specified in
sections 15.1 to 15.11 of Annex V of the JCPOA, as verified by the IAEA (i.e., upon
Implementation Day).88

These waivers and findings, effective on January 16, 2016, waive the imposition of sanctions
under specified provisions of NDAA 2012 and IFCA and find it is vital to the national security
interests of the United States to issue waivers regarding the application of sanctions under
specified provisions of ISA and the TRA, all with respect to certain transactions and activities by
non-U.S. persons89 involving Iran, as set forth in section 4 of Annex II of the JCPOA and
described in section II above. In addition, the waiver determination under sections 1244(c)(1)
and 1246(a) of IFCA waives the imposition of sanctions with respect to transactions by U.S.
persons for the export, reexport, sale, lease, or transfer of commercial passenger aircraft and
related parts and services to Iran exclusively for commercial passenger aviation as set forth in
section 5.1.1 of the JCPOA, provided that OFAC has issued any required licenses.

Implementation:

To implement the U.S. commitments with respect to sanctions described in sections 17.1 to 17.3
and 17.5 of Annex V of the JCPOA, effective Implementation Day, the USG is waiving the

(i) sanctions under IFCA and NDAA 2012 and (ii) application of sanctions under TRA and ISA,
to the extent necessary to implement the JCPOA and excluding any transactions involving
persons on OFAC’s SDN List:

A. IFCA

1. Section 1244(c)(1) – to the extent required for transactions by non-U.S. persons (and, in
the case of commercial passenger aviation activities described in section IV.A above, U.S.
persons, provided that OFAC has issued any required licenses) on behalf of, or for the
benefit of: (i) a person determined to be part of the energy, shipping, or shipbuilding sectors of Iran, (ii) a person determined to operate a port in Iran; or (iii) Iranian
individuals and entities set forth in Attachment 3 to Annex II of the JCPOA;90

2. Section 1244(d) – to the extent required for transactions by non-U.S. persons for the sale,
supply, or transfer to or from Iran of goods or services used in connection with the 91
energy, shipping, or shipbuilding sectors of Iran, including NIOC, NITC, and IRISL;

3. Section 1244(h)(2) – to the extent required for FFIs to conduct or facilitate transactions
for the sale, supply, or transfer to or from Iran of natural gas;

4. Section 1245(a)(1)(A) – to the extent required for transactions by non-U.S. persons for
the sale, supply, or transfer to or from Iran of precious metals;

5. Section 1245(a)(1)(B)– to the extent required for transactions by non-U.S. persons for the
sale, supply, or transfer to or from Iran of materials described in section 1245(d) of IFCA
(graphite, raw or semi-finished metals such as aluminum and steel, coal, and software for
integrating industrial processes) determined to be (i) used by Iran as a medium for barter
swap, or any other exchange or transaction or (ii) listed as assets of the Government of
Iran for purposes of the national balance sheet of Iran;92

6. Section 1245(a)(1)(C) – to the extent required for transactions by non-U.S. persons for
the sale, supply, or transfer to or from Iran of materials described in section 1245(d) of
IFCA (graphite, raw or semi-finished metals such as aluminum and steel, coal, and
software for integrating industrial processes) if the material is (i) to be used in connection
with the energy, shipping, or shipbuilding sectors of Iran, or resold, retransferred, or
otherwise supplied to an end user in one or more such sectors; (ii) sold, supplied, or
transferred to any individual or entity blocked solely pursuant to E.O. 13599, or resold,
retransferred, or otherwise supplied to such an individual or entity; or (iii) determined
pursuant to section 1245(e)(3) of IFCA to be used as described in that section, or resold,
retransferred, or otherwise supplied for use in the nuclear program of Iran, provided that
the transactions do not involve:

(a) the sale, supply, or transfer of materials described in section 1245(d) that have
not been approved by the procurement channel established pursuant to paragraph 16 of UNSCR 2231 and section 6 of Annex IV of the JCPOA, in cases in which
the procurement channel applies; or

(b) the sale, supply, or transfer of materials described in section 1245(d) if the
material is sold, supplied, or transferred, or resold, retransferred, or otherwise
supplied directly or indirectly, for use in connection with the military or ballistic
missile program of Iran;93

7. Section 1245(c) – to the extent required for FFIs to conduct or facilitate transactions that
are within the scope of the waivers under section 1245(a)(1) of IFCA, as described in
sections VI.A.4-VI.A.6 above;

8. Sections 1246(a)(1)(A) – to the extent required for non-U.S. persons to provide
underwriting services or insurance or reinsurance in connection with activities involving
Iran that are within the scope of the JCPOA (as described in sections 17.1 to 17.2 and
17.5 of Annex V of the JCPOA);

9. Section 1246(a)(1)(B)(i) – to the extent required for non-U.S. persons to provide
underwriting services or insurance or reinsurance with respect to, or for the benefit of,
any activity in the energy, shipping, or shipbuilding sectors of Iran for which sanctions
are imposed under IFCA;

10. Section 1246(a)(1)(B)(ii) – to the extent required for non-U.S. persons to provide
underwriting services or insurance or reinsurance for transactions that are within the
scope of the waivers under section 1245(a)(1)(B) and (C) of IFCA as described in
paragraphs VI.A.5-VI.A.6 above;

11. Section 1246(a)(1)(C) – to the extent required for non-U.S. persons to provide
underwriting services or insurance or reinsurance with respect to or for any Iranian
person whose property and interests in property are blocked solely pursuant to E.O.
13599 and section 560.211 of the ITSR, including Iranian individuals and entities set
forth in Attachment 3 to Annex II of the JCPOA;

12. Section 1246(a) – to the extent required for U.S. persons to provide underwriting services
or insurance or reinsurance in connection with commercial passenger aviation activities
described in section IV.A above, provided that OFAC has issued any required licenses;
and

13. Section 1247(a) – to the extent required for FFIs to facilitate transactions on behalf of
Iranian individuals and entities set forth in Attachment 3 to Annex II of the JCPOA;

B. NDAA 2012

1. Section 1245(d)(1) – to the extent necessary to implement the JCPOA, including for FFIs
to conduct or facilitate transactions with the CBI covered by the U.S. commitments with
respect to sanctions described in sections 17.1 to 17.2 of Annex V of the JCPOA;94

C. TRA

1. Section 212(a) – to the extent required for transactions by non-U.S. persons95 for the
provision of 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 4.2.1, 4.3, and 4.4 of Annex II of the JCPOA;

2. Section 213(a) – to the extent required for transactions by non-U.S. persons for the
purchase, subscription to, or facilitation of the issuance of sovereign debt of the
Government of Iran or debt or equity of an entity owned or controlled by the Government
of Iran, in cases where the transactions are for activities described in section 4.1.5 and
4.1.7 of Annex II of the JCPOA; and

D. ISA

1. ISA section 5(a) – to the extent required for transactions by non-U.S. persons related to:
(i) the development of petroleum resources of Iran; (ii) the production of refined
petroleum products in Iran; (iii) the exportation of refined petroleum products to Iran;
(iv) joint ventures with Iran relating to the development of petroleum resources outside of
Iran; (v) support for the development of petroleum resources and refined petroleum
products in Iran; (vi) the development and purchase of petrochemical products from Iran;
(vii) the transportation of crude oil from Iran; or (viii) the ownership, operation, or
control of a vessel used in a manner that conceals the Iranian origin of crude oil or
refined petroleum products transported on the vessel, in cases where the transactions are
for activities described in sections 4.2.1, 4.3.1, 4.3.2, 4.3.4, and 4.3.6 of Annex II of the
JCPOA.

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