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While General License H turned out to be much less useful than many had hoped due to the complexities and limitations it contained, it did provide an important general authorization for certain types of offshore business with Iran with only limited connections to the United States or US persons. General License H was aimed in particular at foreign subsidiaries of US companies, which in 2012 had been made subject to the ITSR’s prohibitions on business with Iran that otherwise apply only to “US persons.” Part of the deal struck in the JCPOA was that the United States would relieve foreign subsidiaries from some of the sanctions constraints they had faced in Iran. OFAC’s General License H was issued on Janu(JCPOA “Implementation Day,” on which we previously advised) to authorize certain business with Iran by non-US entities owned or controlled by US persons, as well as limited support by the US owner/parent. Yesterday’s action also revokes OFAC’s general licenses authorizing imports into the United States of Iranian-origin carpets and foodstuffs and the entry into contingent contracts related to sales of commercial passenger aircraft and related goods and services, which have been replaced with similar wind down provisions requiring that all such activity cease by August 7, 2018. In its place, OFAC has issued a new general license authorizing the wind down of business with Iran by foreign subsidiaries until November 5, 2018.

The most significant change is the revocation of OFAC’s General License H, which had provided sanctions relief pursuant to the JCPOA for foreign subsidiaries of US companies conducting business with Iran. Yesterday’s action primarily impacts certain US companies, as well as non-US companies owned or controlled by US persons. In addition, OFAC updated its Frequently Asked Questions (FAQs) providing guidance on the JCPOA withdrawal, although these minor updates do not add much insight.

Effective yesterday, as part of the President’s decision to withdraw from the Joint Comprehensive Plan of Action (JCPOA), the Office of Foreign Assets Control (OFAC) revoked several general authorizations that had been issued as part of the JCPOA, and amended the Iranian Transactions and Sanctions Regulations (ITSR) to implement “wind down” periods for persons who had previously relied on these authorizations.