Sanctions Update: Get Your Boarding Pass And Proceed To Gate J

Author:Ms Stacey Toder Feldman and Concha Picón Muñoz
Profession:Deloitte
 
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Ladies and gentlemen, the US Office of Foreign Assets Control ("OFAC") has turned on the General License J sign, so fasten your seatbelt and prepare for take-off! If you are engaged in commercial passenger and/or cargo airline activity, and you are considering or already operating in Iran, please note the following update to US regulations.

General License J ("GLJ" or "Licence") authorises the re-export of certain civil aircraft by non-US persons to Iran on temporary sojourn, provided that all listed criteria are met. Aircraft eligible for GLJ include certain US-origin aircraft as well as foreign-made aircraft that contain more than 10% US-controlled content, which are classified under 9A991.b on the US Commerce Control List ("CCL") ("Eligible Aircraft"). The Eligible Aircraft must be in Iran for no more than 72 hours on each temporary sojourn.

Some of the key GLJ conditions include the following:

User restrictions - The authorisation applies only to non-US persons. Hence, non-US persons should take care to ensure that no US persons (or person from embargoed destinations) are involved in or otherwise facilitating any activities which fall under this Licence. Among other conditions, OFAC requires that the non-US re-exporter must retain the right to hire and fire the cockpit crew, dispatch the aircraft, determine its routes, and perform principal maintenance on the aircraft outside of Iran under the control of a non-Iranian person.  Specific exemptions - GLJ specifically does not authorise, among other things: Any transaction related to the sale, lease, or transfer of operational control of Eligible Aircraft to any individual or entity in Iran; Any transaction by a US person; or The re-exportation of a US-registered aircraft on temporary sojourn to Iran. Goods, software and technology: GLJ also authorises non-US persons to re-export to Iran "usual and reasonable quantities" of necessary industry standard onboard supplies of civil aircraft equipment, spare parts, components, and technology for permanent use on the aircraft, classified under ECCN 9A991.c through 9A991.e or 9E991. However, all such aircraft equipment, spare parts, components, or technology licensed for re-export to Iran pursuant to GLJ must be stored on board the aircraft itself. Please note, however, that this license does not cover the cargo content itself. The cargo must be individually classified accordingly, and exported under specific licenses, if applicable.

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