DOING BUSINESS WITH IRAN
GUIDELINES IN ACCORDANCE WITH THE EU SANCTIONS REGIME
Federal Public Service (FPS) Foreign Affairs, Foreign Trade and Development Cooperation, FPS Economy, FPS Finance, Brussels Capital Region, Flemish Region, Walloon Region
Last updated on 28 July 2015
No rights can be derived from this publication
Iran Guide: Contents
Introduction and disclaimer 3
Chapter 1 – Definitions and abbreviations 5
Chapter 2 – List of current sanctions 7
Chapter 3 – Restrictions on exports 10
3.1 Prohibition on the export of military goods10
3.2 Prohibition on the export of repression equipment 10
3.3 Prohibition on the export of telecommunications and Internet technology10
3.4 Prohibition on the export of dual-use goods 10
3.5 Authorisation requirement for the export of dual-use goods 11
3.6 Prohibition on the export of oil, gas and petrochemical products12
3.7 Prohibition on the export of precious metals and diamonds 12
3.8 Prohibition on the export of goods for ship building, maintenance or refit 13
3.9 Prohibition on the export of software for integrating industrial processes13
3.10 Prohibition on the export of graphite and raw and semi-finished metals 13
3.11 Submitting a request or notification to the competent authorities 14
3.12 What can you expect? 15
3.13 Control of which goods? 15
3.14 Exception for foodstuffs, humanitarian purposes and medical equipment and healthcare 15
Chapter 4 – Restrictions on imports 18
4.1 Prohibition on the import of dual-use goods 18
4.2 Prohibition on the import of crude oil, petroleum products and natural gas18
4.3 Prohibition on the import of petrochemical products 18
4.4 Prohibition on the import of precious metals and diamonds 19
Chapter 5 – Restrictions on investments 20
5.1 Prohibition on investments in companies that produce dual-use items 20
5.2 Authorisation requirement for investments in companies that produce dual-use items 20
5.3 Prohibition on investments in oil and gas and the petrochemical industry20
Chapter 6 – Financial sanctions22
6.1 Restrictions on financing of certain enterprises 22
6.2 Freezing of funds and economic resources22
6.3 Restrictions on transfers of funds and on financial services 24
Chapter 7 – Restrictive measures concerning oil tankers and the shipping industry 29
7.1 Prohibition on the provision of certain services in relation to oil tankers and cargo vessels 29
7.2 Prohibition to make available vessels designed for the transport or storage of oil and
petrochemical products29
Chapter 8 – Persons and entities in Iran subject to sanctions 30
8.1 Entities and persons listed in Annexes VIII and IX 30
8.2 Entities and persons NOT listed in Annexes VIII and IX (making available indirectly)30
8.3 Exceptions and changes to lists 31
Chapter 9 – Effect of American sanctions 32
Chapter 10 – Visa applications 33
Chapter 11 – Frequently asked questions 34
Chapter 12 – Contact details and useful web links 36
Introduction and disclaimer
The aim of this guide is to clarify the sanctions regime that applies to Iran, in its current form, in the framework of the nuclear issue. The interim nuclear agreement that entered into effect on 20/01/14 has lifted a small number of sanctions. The large majority of sanctions will remain in place. Consequently, doing business with Iran continues to be subject to a long list of limitations. In this guide, we will provide further information about some of these. The specific practical needs of Belgian companies, wherever in the world they carry out their business transactions, and of foreign companies in Belgium in relation to the sanctions on Iran were the point of departure for this guide.
The sanctions have their origin in the concern of the international community about the Iranian nuclear programme, concretely the concern about a possible military use. The United Nations, the United States and the EU have all imposed sanctions. In addition to the introduction of sanctions, it was also attempted to set up a dialogue between Iran and the E3+3 (the United Kingdom, France and Germany + China, Russia and the US): the so-called two-track policy.
The Iran sanctions regime has become the most extensive EU sanctions regime to date. It comprises measures on arms trade, the financial sector, the transport sector, the oil and gas sector, the petrochemical industry, precious metals, and more specific measures to prevent trade in goods and services which can be used in the Iranian nuclear and ballistic programme. Moreover, a considerable number of entities and persons have been included in the sanctions list and their assets have been frozen (e.g. the Central Bank of Iran). A visa ban has also been imposed on the persons included in the list. The United States have set up a similar extensive sanctions regime, which, like the EU sanctions regime, goes much further than what was decided on within the UN.Companies must therefore take into account the possible consequences of the American sanctions, especially if they use American parts, software or technology, or if they have business interests in the US, because the US applies the principle of extraterritoriality. If a European company trades with Iran and, in doing so, breaches the US sanctions regime, it also exposes itself to the US sanctions.
The election of President Rohani in June 2013 gave a new impulse to the dialogue between Iran and the E3+3, and in November 2013 the E3+3 and Iran reached an interim agreement on the nuclear programme. The agreement contains action points to be carried out by the different parties. For Iran, these include the halt of nuclear expansion and the reversal of certain results obtained, such as the conversion of the 20% enriched uranium stockpiles to less dangerous forms. The US and the EU have committed to not imposing any further sanction measures. They have also lifted the sanctions applying to transport services and insurance in relation to the sale of Iranian crude oil, as well as the sanctions linked to the Iranian export of petrochemical products. Measures concerning the purchase and sale of gold and precious metals have also been lifted. The measures relating to the safety of Iranian civil aviation have become more flexible. Furthermore, the US have lifted sanctions in the automotive sector. Financial restrictions on legitimate trade have been reduced, and a financial channel has been created to facilitate humanitarian trade. The mutual implementation of the action points started on 20 January 2014.
On 14 July 2015, the E3+3 and Iran reached a global agreement on Iran's nuclear programme. The agreement takes the form of an action plan, the Joint Comprehensive Plan of Action (JCPOA), which includes 5 technical annexes.
Under the JCPOA, the sanctions regime against Iran should be lifted in 3 phases spread over 10 years. Movement to the next phase is fully dependant on Iran's implementation of the agreement, meaning that the sanctions and other restrictive measures against Iran will not change in the short term.
Sanctions existing since 2012 will remain in place until the first phase, as provided for in the JCPOA, is complete, namely the IAEA's verification that Iran is complying with all the terms set out in the agreement. This first phase could be reached in early 2016. It should be noted that the suspension of certain sanction measures introduced during the negotiation period (as a result of the interim agreement of November 2013) has been extended until 14/01/2016 and remains applicable pending the implementation of the JCPOA of 14/07/2015.
However, the JCPOA also provides a snap back mechanism whereby the lifted sanctions are automatically reinstated if, at some point, Iran fails to meet its obligations.
Below you will find a short non-exhaustive description of the 3 phases under the JCPOA:
•Phase 1: Resolution 2231 of the United Nations Security Council, adopted on 20 July 2015, endorses the action plan defined in the JCPOA and establishes the snap back mechanism. Once the IAEA has verified that Iran has complied with the terms of the nuclear agreement, the United Nations sanctions along with EU and US sanctions on the following sectors may be lifted: finance (including banking and insurance activities); oil, gas and petrochemicals; shipping, shipbuilding and other transport services; gold, other precious metals, banknotes and coinage. At the same time, certain sanctions on individuals (visa bans and asset freezing) could be lifted. It is generally thought that this first phase could be reached in early 2016.
•Phase 2 (8 years after phase 1 - in principle 2023 or once the IAEA can conclude that Iran's nuclear programme is totally peaceful): other EU and US sanctions are lifted, particularly those that affect dual-use goods; the transport of goods and technologies covered by the EU Common Military List; software; arms. At the same time, other sanctions on individuals (visa bans and asset freezing) could be lifted.
•Phase 3 (10 years after phase 1 - in principle 2025): lifting of all remaining sanctions.
Comprehensive information on the JCPOA can be found at:
It should be noted that certain sanctions regimes related to Iran but not to the nuclear programme (such as EU sanctions for human rights violations or US sanctions related to terrorism) are not affected by the JCPOA and will therefore continue to be applied. These sanctions are separate from those imposed in response to the nuclear programme and target specific individuals and entities. These specific sanctions are not covered in this guide.
We thank the Dutch Ministry of Foreign Affairs for the text on which this guide on the EU sanctions regime against Iran is based. Concretely, the sanctions correspond to the following European legislation:
- Council Decision 2010/413/CFSP and Council Regulation (EU) No 267/2012, and subsequent amendments, concerning restrictive measures in view of nuclear proliferation.
- Council Decision 2011/235/CFSP and Council Regulation (EU) No 359/2011, and subsequent amendments, concerning restrictive measures in view of the human rights situation;
The EU Regulations (and later amending Regulations) directly apply in Belgium.
The sanctions dealt with apply to all places, persons and transactions that are subject to European Union legislation: EU territory, EU airspace, airplanes and ships of EU member countries, EU citizens anywhere in the world, legal persons established and recognised under the laws of an EU Member State, and business transactions conducted entirely or in part within the EU.
For additional information we refer you to the EU legislation. If you have further questions concerning the application of the sanctions in Belgium, you can contact the competent authorities: the Regions (Export Control), the FPS Finance (Treasury and Customs) and the FPS Foreign Affairs, Foreign Trade and Development Cooperation (Sanctions Unit).
This guide has been compiled with care, but it is not necessarily complete, and no rights can be derived from it.
Brussels, 28 July 2015
Chapter 1 – Definitions and abbreviations
All relevant definitions are listed in Article 1 of the Iran Regulation, to which you will find a link in Chapter 12.
For the purposes of this guide, the most important definitions are[1]:
Dual-use items:
items, including software and technology, which can be used for both civil and military purposes, including all goods which can be used for both non-explosive uses and assisting in any way in the manufacture of nuclear weapons or other nuclear explosive devices.
Economic resources:
assets of every kind, whether tangible or intangible, movable or immovable, which are not funds, but which may be used to obtain funds, goods or services.
Goods:
Goods, items, materials, equipment, hardware, technologies, software.
Transfer of funds:
(i)any transaction carried out on behalf of a payer through a payment service provider by electronic means, with a view to making funds available to a payee at a payment service provider, irrespective of whether the payer and the payee are the same person. The terms payer, payee and payment service provider have the same meaning as in Directive 2007/64/EC of the European Parliament and of the Council of 13 November 2007 on payment services in the internal market(1);
(ii)any transaction by non-electronic means such as in cash, cheques or accountancy orders, with a view to making funds available to a payee irrespective of whether the payer and the payee are the same person.
Iranian person, entity or body:
- the State of Iran or any public authority thereof;
- any natural person in, or resident in, Iran;
- any legal person, entity or body having its registered office in Iran;
- any legal person, entity or body, inside or outside Iran, owned or controlled directly or indirectly by one or more of the above mentioned persons or bodies.
Technical assistance:
any technical support related to repairs, development, manufacture, assembly, testing, maintenance, or any other technical service, and which may take forms such as instruction, advice, training, transmission of working knowledge or skills or consulting services; including verbal forms of assistance.
Brokering services:
(i)the negotiation or arrangement of transactions for the purchase, sale or supply of goods and technology or of financial and technical services, including from a third country to any other third country, or
(ii)the selling or buying of goods and technology or of financial and technical services, including where they are located in third countries for their transfer to another third country.
In addition, the following abbreviations or references will be used in this guide:
The Iran Council Decision:
Council Decision 2012/35/CFSP of 23 January 2012 (including subsequent amending Decisions).
The Iran Regulation:
Council Regulation (EU) No 267/2012 of 23 March 2012 on restrictive measures against Iran and repealing Regulation (EC) No 961/2010(including subsequent amending Regulations).
The Iran Human Rights Regulation:
Council Regulation (EU) 359/2011 of 12 April 2012 concerning restrictive measures directed against certain persons, entities and bodies in view of the situation in Iran (including subsequent amending Regulations).
The Dual-Use Regulation:
Regulation (EC) No 428/2009 of 5 May 2009 (including subsequent amending Regulations).
Article XX:
All Articles listed in this Iran guide refer to the Iran Regulation, unless otherwise stated.
Annex XX:
All Annexes listed in this Iran guide refer to the Annexes to the Iran Regulation, unless otherwise stated.
End User Certificate (EUC)/ End User Statement (EUS):
An End User Statement is a document in which it is stated that the goods in question (mention type and quantity) will be imported to the country in question for one’s own use or for use by customer(s) located there (indicate name and address). The intended use also has to be mentioned. The EU standard format for an EUC can be found on
FPS:
Federal Public Service
The interim agreement:
interim agreement signed by the United States, the United Kingdom, France, Germany, China, Russia and Iran on 24 November 2013. In the joint statement on the interim agreement concerning Iran’s nuclear programme (English) you can find more details. The interim agreement has been included in the EU legislation in EU Regulation 42/2014.
Competent regional authorities:
regional services in charge of issuing export licences for military equipment and dual-use items, namely
- Strategic Goods Control Unit for the Flemish Region (postcodes 1500 to 3999 and 8000 to 9999):
- Direction des Licences d’Armes for the Walloon Region (postcodes 1300 to 1499 and 4000 to 7999):
- Brussels International for the Brussels Capital Region.
You can find the link to the contact details of the competent bodies in Chapter 12.
Chapter 2 – List of current sanctions
Restrictions on the (in)direct sale, supply, transfer or export to Iran of the goods and technologies listed in the Annexes:
AnnexI / prohibition under Art. 2.1, exemption possible under Art. 6(d), Art. 6(e) or Art. 7
II / prohibition under Art. 2.1, exemption possible under Art. 7
III / authorisation required under Art.3.1
VI / prohibition under Art. 8.1, old contracts exempt under Art. 10
VIA / prohibition under Art. 8.1, old contracts exempt under Art. 10
VIB / prohibition under Art. 10a.1, old contracts exempt under Art. 10c
VII / prohibition under Art. 15.1(a), prohibition lifted under Art. 15.3 for products listed in Annex XII
VIIA / prohibition under Art. 10d.1, old contracts exempt under Art. 10f
VIIB / prohibition under Art. 15a.1, old contracts exempt under Art. 15c
Restrictions on the purchase, import or transport from Iran of the goods and technology listed in the Annexes:
AnnexI / prohibition under Art. 4
II / prohibition under Art. 4
IV / prohibition under Art. 11.1, transition period for old contracts Art. 12, transport prohibition lifted under Art. 11.3 for products listed in Annex XI
IVA / prohibition under Art. 14a.1, exception Art. 14a.2
V / prohibition under Art. 13.1, transition period for old contracts Art. 14, prohibition lifted under Art. 13.3
VII / prohibition under Art. 15.1(b), prohibition lifted under Art. 15.3 for products listed in Annex XII
Restrictions on technical assistance and/or brokering with respect to the goods and technology listed in the Annexes:
AnnexI / prohibition under Art. 5.1(b), exemption possible under Art. 7
II / prohibition under Art. 5.1(b), exemption possible under Art. 7
III / authorisation required under Art.5.2(a)
IV / prohibition under Art. 11.1(d), transition period for old contracts Art. 12, prohibition partially lifted under Art. 11.4 for products listed in Annex XI
VIIA / prohibition under Art. 14a.1(e), exception Art. 14a(4)
VI / prohibition under Art. 9(a), old contracts exempt under Art. 10
VIA / prohibition under Art. 9(a), old contracts exempt under Art. 10
VIB / prohibition under Art. 10b.1(a), old contracts exempt under Art. 10c
VII / prohibition under Art. 15.1(c), prohibition lifted under Art. 15.3 for products listed in Annex XII
VIIA / prohibition under Art. 10e.1(a), old contracts exempt under Art. 10f
VIIB / prohibition under Art. 15b.1(a)
Restrictions onfinancing and financial assistance (including grants, loans and export credit insurance for the goods and technology listed in the Annexes):
AnnexI / prohibition under Art.5.1(c), exemption possible under Art. 7
II / prohibition under Art.5.1(c), exemption possible under Art. 7
III / authorisation required under Art.5.2(b)
IV / prohibition under Art. 11.1(d), transition period for old contracts Art. 12, prohibition partially lifted under Art. 11.4 for products listed in Annex XI
IVA / prohibition under Art.14a.1(e), exception Art.14a.2
V / prohibition under Art. 13.2, transition period for old contracts Art. 14, prohibition lifted under Art. 13.3
VI / prohibition under Art. 9(b), old contracts exempt under Art. 10
VIA / prohibition under Art. 9(b), old contracts exempt under Art. 10
VIB / prohibition under Art. 10b.1(b), old contracts exempt under Art. 10c
VII / prohibition under Art. 15.1(c), prohibition lifted under Art. 15.3 for products listed in Annex XII
VIIA / prohibition under Art. 10e.1(b), old contracts exempt under Art. 10f
VIIB / prohibition under Art. 15a.1(b)
Restrictions on financial loans, credit, the acquisition or extension of a participation and the creation of a joint venture with Iranian persons or entities engaged in any of the following activities: