Yes, You Can Still (Get a License to) Sell Aircraft Parts to Iran

The program that permitted aircraft parts to be sold to Iran has been extended through November 24, 2014.  This program is based on an agreement among China, France, Germany, Russia, United Kingdom, United States and Iran known as the Joint Plan of Action (JPOA).

Sellers subject to U.S. law still need to obtain a license from the Treasury Department. The license will be considered to be a “transactional license.” You can apply for the license here: https://licensing.ofac.treas.gov/Apply/Introduction.aspx.

The Agreement between the United States and Iran provides that the U.S. would license (i) the supply and installation in Iran of spare parts for safety of flight for Iranian civil aviation and associated services and (ii) safety related inspections and repairs in Iran as well as associated services. Licenses applications will be reviewed on a case-by-case basis, though, and there is no guarantee that a license will be issued in any case.

OFAC policy suggests that applications should provide complete details of all transactions for which authorization is sought, including U.S. Department of Commerce Export Control Classification Numbers (ECCN) as well as evidence that the proposed transactions are for safety of flight.

This includes aircraft parts and some services but it does not include complete aircraft. The “goods” provision is limited to “spare parts for safety of flight for Iranian civil aviation.”

Unless an extension is negotiated, all licenses issued pursuant to this program will expire on November 24, 2014. Therefore distributors should plan on completing all activities related to the licenses by that date … including payment! OFAC has pledged that it will not impose any sanctions on banks that facilitate the fund transfers for these licensed transactions during the relevant period, but that promise appears to end after November 24, 2014.

Related Documents:

Joint Plan of Action (JPOA) between the P5 + 1 and the Islamic Republic of Iran: http://www.state.gov/p/nea/rls/220042.htm

Guidance on the Extended Program: http://www.treasury.gov/resource-center/sanctions/Programs/Documents/jpoa_guidance_ext.pdf

Iran JPOA FAQs (see FAQ #10): http://www.treasury.gov/resource-center/sanctions/Programs/Documents/jpoa_faqs_ext.pdf

Amended Statement of Licensing Policy on Activities Related to the Safety Of Iran’s Civil Aviation Industry: http://www.treasury.gov/resource-center/sanctions/Programs/Documents/civil_aviation_slp_iran_ext.pdf

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About Jason Dickstein
Mr. Dickstein is the President of the Washington Aviation Group, a Washington, DC-based aviation law firm. He represents several aviation trade associations, including the Aviation Suppliers Association, the Aircraft Electronics Association, the Aircraft Fleet Recycling Association and the Modification and Replacement Parts Association.

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