Back

31 CFR § 560.536 - Winding down of transactions related to the negotiation of contingent contracts for activities eligible for authorization under the Statement of Licensing Policy for Activities Related to the Export or Re-export to Iran of Commercial Passenger Aircraft and Related Parts and Services.

Date issued: Jun. 28 2018

PRINT
§560.536 Winding down of transactions related to the negotiation of contingent contracts for activities eligible for authorization under the Statement of Licensing Policy for Activities Related to the Export or Re-export to Iran of Commercial Passenger Aircraft and Related Parts and Services.
(a) All transactions and activities that are ordinarily incident and necessary to the wind down of the following activities are authorized through 11:59 p.m. eastern daylight time on August 6, 2018: U.S. persons engaging in all transactions ordinarily incident to the negotiation of contingent contracts for activities that were, at the time of the negotiation, eligible for authorization under the now-rescinded Statement of Licensing Policy for Activities Related to the Export or Re-export to Iran of Commercial Passenger Aircraft and Related Parts and Services (JCPOA SLP).
Note 1 to paragraph (a): OFAC has posted an archived copy of the JCPOA SLP on its website (www.treasury.gov/ofac) for reference purposes.
(b) Nothing in paragraph (a) of this section authorizes the exportation, reexportation, sale, or supply, directly or indirectly, of any goods or technology to Iran, the Government of Iran, an Iranian financial institution, or any other person whose property and interests in property are blocked pursuant to §560.211.
(c) For purposes of this section, the term "contingent contract" means a contract where the performance of the contract is made expressly contingent upon the issuance of a specific license by the Office of Foreign Assets Control authorizing the activities to be performed. For purposes of this section, the term "contingent contract" includes executory contracts, executory pro forma invoices, agreements in principle, executory offers capable of acceptance such as bids or proposals in response to public tenders, binding memoranda of understanding, or any other similar agreement.
[83 FR 30337, June 28, 2018]
External link location:
https://www.ecfr.gov/cgi-bin/text-idx?SID=0c33a7bf04d8499af4f612f367cf8698&mc=true&node=pt31.3.560&rgn=div5#se31.3.560_1536

TURBOFAC Commentary (218 words)

Notes Common to the Post-JCPOA Winddown GLs (560.534, 560.535, 560.536, 560.537)

1) These four GLs all permit the winding down of activities authorized pursuant to GLs issued in connection with the JCPOA. Accordingly, the scope of all of these GLs mimics the scope of the JCPOA GLs to which they correspond.

--
Note specific to 560.536 (2019):

1) Subsection (c) mirrors a part of General License I, which was revoked as of 06/27/2018. Note the definition of "contingent contracts" as including "executory contracts, executory pro forma invoices, agreements in principle, executory offers capable of acceptance such as bids or proposals in response to public tenders, binding memoranda of understanding, or any other similar agreement."

This is one of a few such statements enumerating a list of document types that would presumably all constitute "contracts" within the scope of the ITSR's cross-programmatic definition of "property" (560.325). There is, however, a lack of clarity as to whether all such contracts within the scope of the authorization would necessarily, in all cases, be prohibited without the authorization.

Concerning the relationship between "pre-transactional" activities and the blocking and non-blocking aspects of the ITSR, refer to General Note and Associated Scenario Matrix re: the Legal Status of Discussions, Negotiations, Contracts and other Pre-transactional Activities (System Ed. Note).