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Notice to Exporters 201218 - New and amended non-proliferation

By Gail Arnold,2014-06-20 14:22
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Notice to Exporters 201218 - New and amended non-proliferation

TOPIC: Sanctions

    AUDIENCE: Companies trading with or investing in Iran

Update to Notice to Exporters 2012/06

    Overview

    1. On 23 March 2012 the Council of the European Union adopted a new Regulation

    implementing restrictive measures on Iran set out in Council Decision

    2010/413/CFSP, as amended by Council Decision 2012/35/CFSP of 23 January

    2012, that fall within EU competence.

    2. Council Regulation (EU) No 267/2012 of 23 March 2012 concerning restrictive

    measures against Iran and repealing Council Regulation (EU) 961/2010 („the

    Regulation‟) was published on 24 March 2012 in the Official Journal of the

    European Union (OJ L 88, 24.3.2012, p1). For more details, read the full text of the

    Regulation: http://eur-

    lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2012:088:0001:0112:EN:PDF.

3. At the same time, the Council adopted Council Decision 2012/169/CFSP amending

    Council Decision 2010/413/CFSP. This deleted the prohibitions relating to

    equipment which might be used for internal repression. This measure, and

    restrictions on the supply of equipment and technology which may be used for the

    monitoring or interception of internet or telephone communications, and related

    services, are now included in the separate sanctions imposed against Iran in view

    of the human rights situation (see Notice to Exporters 2012/19 for further details).

    4. If you do business with or in Iran, you should be aware of these sanctions and

    should ensure that you take steps to comply with the measures.

New sanctions in the context of other measures on Iran

5. The Regulation came into force with immediate effect on 24 March 2012 (date

    of its publication in the Official Journal). It repeals and replaces Council Regulation

    (EU) No 961/2010. For details of the measures previously imposed by Regulation

    961/2010 see Notice to Exporters 2010/25 and Notice to Exporters 2012/34.

    6. As noted above, the EU has also amended the sanctions imposed against Iran in

    view of the human rights situation. The human rights sanctions now also include

    prohibitions and restrictions on the sale, supply, transfer or export of goods and

    technology, and on the provision of related services. Please see Notice to

    Exporters 2012/19 for further details.

    What are the new or amended measures?

    7. The Regulation makes a number of amendments to the existing prohibitions and

    restrictions, and introduces a number of new measures. The key changes are:

    Export Control Organisation Page 1 27 March 2012

    ; Changes to the prohibitions relating to the sale, supply, transfer or export of dual-use items and of goods and technology (including software) which could contribute to Iran‟s nuclear and missile-delivery programmes. The items

    concerned are set out in Annexes I and II. Both Annexes have been amended to include additional items.

    ; The list of items which could contribute to Iran‟s nuclear and missile-delivery

    programmes for which prior authorisation (i.e. an export licence) is required for sale, supply, transfer or export to Iran has been amended and is now Annex III of the Regulation (was Annex IV in Regulation 961/2010). A number of items have been transferred from this Annex to Annex II and approximately 35 additional items have been added to Annex III. These new items are all items which the UK and other Member States have previously made licensable on a case-by-case basis under the end-use controls. Addition of these items to Annex III therefore provides certainty for exporters and ensures a more level-playing field across the EU, as a licence will always be required for export to Iran from any Member State.

    ; Annex III of Council Regulation 961/2010 has been deleted. Prohibitions on the supply of these items have instead been included in Council Regulation (EU)

    No 359/2011 as amended by Council Regulation (EU) No 264/2012.

    Regulation 359/2011 also now includes a prohibition on the sale, supply, transfer or export to Iran of equipment and technology which may be used for the monitoring or interception of internet or telephone communications, as specified in Annex IV to that Regulation; and a prohibition on the provision of related services. (see Notice to Exporters 2012/19)

    ; An extension of the prohibitions in Article 8 to include the sale, supply or transfer to Iran, or to Iranian or Iranian-owned enterprises outside Iran, of key equipment and technology for the petrochemical industry. The list of equipment and technology covered by this prohibition is defined in Part 3 of Annex VI of the Regulation. The provision of technical assistance or training, and of financing or financial assistance, related to these items is also prohibited (Article 9).

    ; The exemptions, in Article 10, from the prohibitions in Articles 8 and 9 relating to transactions required by, or obligations arising from, contracts concluded before certain dates have been retained and extended to cover the sale, supply, etc., of key equipment and technology for the petrochemical industry. Such contracts must have been concluded before 27 October 2010 in relation to key equipment and technology for the sectors of the oil and gas industry specified in Article 8(2), and before 23 January 2012 in relation to key equipment and technology for the petrochemical industry. Relevant transactions must be notified to the ECO at least 20 working days in advance. The ECO will be updating the Oil and Gas Notification form and associated guidance accordingly.

    Export Control Organisation Page 2 27 March 2012

    ; New prohibitions on the import, purchase or transport from Iran of crude oil and

    petroleum products, and of petrochemical products, and on the provision of

    services related to the import etc. These prohibitions are set out in Articles 11

    to 14 of the Regulation; the products covered are specified in Annexes IV and V.

    Further details of these measures are given in the BIS Import Licensing

    Branch‟s Notice to Importers and HM Treasury‟s Financial Sanctions Notice

    issued on 26 March 2012.

    ; New prohibitions on the sale, supply, transfer or export to, and the purchase,

    import or transfer from, Iran of gold, precious metals and diamonds as specified

    in Annex VII (Article 15); and on the sale, supply, transfer or export of unissued

    or newly minted Iranian banknotes and coins to or for the benefit of the Central

    Bank of Iran (Article 16).

    ; A prohibition on any new investment in the petrochemical sector in Iran or in

    Iranian or Iranian-owned enterprises engaged in that industry outside Iran. This

    includes the granting of financial loans or credit, the acquisition or extension of

    a participation (such as through the purchase of shares), or the creation of joint

    ventures (Article 17c).

    Note: this is not an exhaustive list of changes to the sanctions regime.

    8. There are also additional financial restrictive measures. Further details of the financial sanctions are available from HM Treasury: http://www.hm-

    treasury.gov.uk/fin_sanctions_index.htm

    Impact on issuing of export licences to Iran

    9. All export licences are considered on a case by case basis by reference to the Consolidated EU and National Arms Export Licensing Criteria taking account of the prevailing circumstances at the time of the application. In particular, Criterion 1 states that a licence will not be issued if to do so would be inconsistent with the UK‟s international obligations, including under UN and EU sanctions and

    embargoes. For details of the Criteria see:

    http://www.businesslink.gov.uk/exportcontrol

    10. In line with standard export licensing procedures, ECO will review whether it is necessary to revoke or amend any extant export licences where the proposed export is no longer consistent with the Consolidated Criteria. You should note that pre-published Open General Licences do not provide licensing coverage for exports to Iran.

    What ACTION do you need to take as a result?

    Export Control Organisation Page 3 27 March 2012

    11. If you are involved with doing business with Iran, then you should take heed of

    these sanctions measures. In particular you should be prepared for the strong

    likelihood of increased practical difficulties in obtaining payment from Iranian

    customers and/or financial support for Iranian transactions.

    12. You will need to be careful of your end-users and take steps to make appropriate

    checks against the designated parties list as detailed in the measures.

    13. If you are intending to export to Iran you should keep yourself well informed of

    developments through the media and other information channels. All future export

    licence applications will be considered in relation to the terms of the updated EU

    imposed sanctions and restrictions,

    Related information

14. For further information see:

    ; Details of current arms embargoes are published on the Businesslink site at:

    http://www.businesslink.gov.uk/bdotg/action/layer?r.s=tl&r.l1=1079717544&r.lc=

    en&r.l2=1084228483&topicId=1084100244

    ; From this page you can navigate through to access a summary of Current

    Arms Embargoes and Other Restrictions and links to individual country

    pages with current arms embargoes in force.

    ; Businesslink Guide on “Sanctions on Iran

    http://www.businesslink.gov.uk/bdotg/action/layer?r.l1=1079717544&r.l2=10842

    28483&r.s=tl&topicId=1084127310

    ; Further information on “Sanctions implemented by the UK” is published on the

    Foreign and Commonwealth Office (FCO) website:

    http://www.fco.gov.uk/en/about-us/what-we-do/services-we-deliver/export-

    controls-sanctions/

    Further Details

    15. For more information on import measures please see the BIS Import Licensing

    Branch‟s (ILB) webpages at http://www.bis.gov.uk/policies/trade-policy-

    unit/importing-into-uk/import-licensing-branch ILB can be contacted at:

    enquiries.ilb@bis.gsi.gov.uk

16. For further information on financial restrictions see the HM Treasury‟s Asset

    Freezing Unit‟s webpages at:

    http://www.hm-treasury.gov.uk/fin_sanctions_index.htm

    Export Control Organisation Page 4 27 March 2012

    17. For further details of sanctions, contact the Sanctions Team, International

    Organisations Department, Foreign & Commonwealth Office (FCO) Tel: 020

    7008 3163

    18. For further details of strategic export controls please contact:

    Export Control Organisation

    Department for Business, Innovation and Skills

    3rd Floor, 1 Victoria Street

    London, SW1H 0ET

    Tel: 020 7215 4594 Fax: 020 7215 2635

    E-mail: eco.help@bis.gsi.gov.uk

    Website: http://www.bis.gov.uk/exportcontrol or

    http://www.businesslink.gov.uk/exportcontrol

    SPIRE (Export Licensing Database): https://www.spire.bis.gov.uk

    This Notice is for information purposes only and has no force in law. Please note that where legal advice is required UK exporters, end users and consignees should make their own arrangements. If the Notice is relevant to your exports, you are recommended to take appropriate action as necessary. You are also advised to keep a copy of this notice for your compliance records.

    Export Control Organisation

    27 March 2012

    NTE201218

    Export Control Organisation Page 5 27 March 2012

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