The notice also clarifies the licensing process for traders considering importing goods that are subject to the published prohibitions.

Traders are strongly advised to read the statutory guidance and note that where there may be conflict in the guidance published by the FCDO, the statutory guidance will prevail.

Guidance is not regulatory.

Background

The Iran (Sanctions) (Nuclear) (EU Exit) Regulations 2019 came into force on 1 January 2021, replacing existing EU legislation post-EU Exit, effecting updates in the corresponding prohibitions in the Open General Import Licence (OGIL) and related UK regulations.

Technical Clarity:

The Regulations impose financial, trade and immigration sanctions for the purpose of:

• giving effect to the United Kingdom’s obligations under United Nations Security Council Resolution 2231 (2015) (‘UNSCR 2231’)
• the additional statutory purposes set out in the Regulations

This sanctions regime is aimed at:

• encouraging the Iranian Government to comply with relevant UN obligations and abandon nuclear weapons programmes
• restricting the ability of Iran to develop nuclear weapons delivery systems

Import Prohibitions – The Detail

The import prohibitions specified in the Iran (Sanctions)(Nuclear)(EU Exit) Regulations 2019, are presented as follows:

Regulations 28 to 31C

Regulations 28 to 31 prohibit the import, supply and delivery, acquisition and transfer of certain goods and technology. These cover goods that are consigned from, are located in, or originate in Iran, as applicable under the relevant regulation

Regulations 31A to 31C prohibit the provision of technical assistance, financial services and funds and brokering services relating to the import, supply and delivery, acquisition and transfer of certain goods and technology.   

Regulations 31D to 31I  

Regulations 31D to 31F prohibit the import, acquisition, supply and delivery of gold, precious metals, and diamonds. These cover goods consigned from, located in, or originating in Iran, as applicable under the relevant regulation.

Regulations 31G to 31I prohibit the provision of technical assistance, financial services and funds and brokering services relating to the import, acquisition, and supply and delivery of gold, precious metals, and diamonds.

Regulation 31J to 31O

Regulations 31J to 31L prohibit the import, acquisition, and supply and delivery of oil and petroleum products. These cover goods consigned from, located in, or originating in Iran, as applicable under the relevant regulation.

Regulations 31M to 31O prohibit the provision of technical assistance, financial services and funds and brokering services relating to the import, acquisition, and supply and delivery of oil and petroleum products.

Regulation 31P to 31U

Regulations 31P to 31R prohibit the import, acquisition, supply and delivery of petrochemicals. These cover goods that are consigned from, are located in, or originate in Iran, as applicable under the relevant regulation. 

Regulations 31S to 31U prohibit the provision of technical assistance, financial services and funds and brokering services relating to the import, acquisition, and supply and delivery of petrochemicals.

Regulation 31V to 31Z1

Regulations 31V to 31X prohibit the import, acquisition and supply and delivery of natural gas. These cover goods that are consigned from, are located or originate in Iran, as applicable under the relevant regulation. 

Regulations 31Y to 31Z1 prohibit the provision of technical assistance, financial services and funds and brokering services relating to the import, acquisition, and supply and delivery of natural gas.

Exceptions and Licences

Part 6 of the regulation sets out exceptions to the import prohibitions which can apply in certain clearly defined circumstances where conditions are considered an emergency under those specific circumstances. 

Note: An exception applies automatically and does not require a licence to be issued in accordance with the Regulations. Keep records as evidence of compliance at audit.

A link to Part 6 of the regulation can be found here: The Iran (Sanctions) (Nuclear) (EU Exit) Regulations 2019

Exceptions are listed below:

Regulation 37B

Regulation 37B provides an exception to the prohibitions listed above under emergency conditions relating to gold, precious metals and diamonds, oil and petroleum products, petrochemicals, and natural gas.

The exception applies to any act by a person who provides the Secretary of State with justification within the relevant period that the act relates to an emergency.

Regulation 37E

Regulation 37E provides an exception to the prohibitions on the import, acquisition, supply, and delivery of oil and petroleum products, petrochemicals, and natural gas, and the related prohibitions on technical assistance, financial services and funds, and brokering services.

The exception applies to any relevant activity necessary for the official purposes of a diplomatic mission or consular post in Iran, or an international organisation enjoying immunities under international law.

Regulation 37F

Regulation 37F(1) provides an exception to the prohibitions on the acquisition of gold, precious metals and diamonds, oil and petroleum products, petrochemicals, and natural gas, and related prohibitions on technical assistance, financial services and funds, and brokering services.

This exception applies where goods have been lawfully imported into the United Kingdom or the Isle of Man and are located there.

Regulation 37F(2) provides an exception to the prohibitions on the acquisition of oil and petroleum products and petrochemicals, and related prohibitions on technical assistance, financial services and funds, and brokering services. 

This exception applies where a United Kingdom national located in Iran engages in these activities in relation to goods located in Iran and for the personal use of that United Kingdom national or their immediate family members.

Regulation 38

The prohibitions mentioned above do not apply if the act is one which a “responsible officer” (for example, a government or agency official) has determined would be in the interests of national security, or the prevention or detection of serious crime in the United Kingdom or elsewhere.

Trade Sanctions Licences

Definition: A licence is a written authorisation that permits an otherwise prohibited activity.

Guidance on the types of trade sanctions licences and how to apply for them can be found at the link below: Guidance on how to apply for a trade sanctions licence 

Responsibility and Due Diligence

The trader is responsible for carrying out appropriate due diligence to determine any relevant controls or actions needed to remain within the law. This includes applying for licences and making the appropriate licence declaration at import.

The official line is to seek legal advice if you are unclear about trading obligations or responsibilities when importing from Iran.

Applying for Import Licences

The Import Controls and Sanctions Team within the Department for Business Innovation, Science and Trade administers trade and licensing provisions on behalf of the Secretary of State. 

Licence applications are weighed against the UK regulations and must be consistent with UK international sanctions obligations

For traders intending to import prohibited goods, and where an exception does not apply, an application should be made through the following link: Apply for an import licence.

Applications require an account through the GOV.UK One Login

How to apply for a licence after creating an account:

1. Submit an importer access request
2. Under ‘What are you importing and where are you importing it from?’, indicate that you wish to apply for a Sanctions and ad hoc Licence
3. Include your 12-digit EORI number with the relevant commodity codes associated with the import.

Note: An approved licence must be added to the import declaration, and the licence authorisation will relate directly to the commodity codes given on both the licence and the declaration.

Applications are considered on a case-by-case basis. Detail will be key.

Top Tips

Check whether the proposed trade activity falls within a specific published activity and make provision in the application to clarify why you consider a licence may be necessary.

For advice on a specific import, email the import sanctions team at   importsanctions@businessandtrade.gov.uk, including details of the proposed import.

Northern Ireland Licensing

Any import licence granted relating to Northern Ireland will be consistent with any EU sanctions regulation as they apply through the Windsor Framework agreement.

Licences are not required for imports or exports of non-military goods covered by sanctions between Northern Ireland and EU Member States.

Licences will be required from an EU Member State to move items to or from the sanctioned country.

You must comply with any other licensing requirements under UK import or export control legislation, as applicable.

Import of Oil and Petroleum Products - Further detail

Bunkering

Vessels entering UK ports are not required to verify the origin of the bunker fuel, provided the bunker fuel is required for the operation of the vessel pursuing the voyage.

Similarly, aircraft operating a flight between a third country and the UK are not required to verify the origin of the fuel transported in its fuel tank(s), provided the fuel is used only for the flight of the aircraft.

Tank Heels

When a container has previously been used to transport or store Iranian oil or petroleum products, an unpumpable quantity of substance, ‘tank heel’, may remain at the base of the container and cannot be removed without causing damage to the container. If non-Iranian oil or petroleum products are added to the container, it will mix with the tank heel.

Products held in the tank, or products processed from such products, would not be prohibited from import into the UK under the Iran Regulations.

Co-mingling

Other than in relation to the situations set out in accompanying guidance on tank heels, the prohibitions apply to oil and petroleum products of Iranian origin co-mingled with oil or petroleum products of another origin.

Enforcement of trade sanctions

The Regulations and Penalties:

The Customs and Excise Management Act 1979 (CEMA) makes it a criminal offence to contravene the import sanctions.

Some breaches of the import sanctions are triable either way in law and carry a maximum sentence of 14 years’ indictment or a fine (or both). 

Any breach of the trade licensing provisions or information requirements in connection with general trade licences is also triable either way in law and carries a maximum sentence on indictment of 2 years’ imprisonment or a fine (or both). 

HM Revenue and Customs (HMRC) enforces the licensing restrictions and investigates suspected offences.

Any breach of any of the trade prohibitions or licensing provisions should be reported to HMRC through a Voluntary Disclosure as soon as possible after discovery.

A link to the regulations can be found below:

The Iran (Sanctions) (Nuclear) (EU Exit) Regulations 2019

A link to the Statutory Guidance can be found here: Iran nuclear sanctions: statutory guidance - GOV.UK

Enquiries

For enquiries and any further information on import sanctions, contact the Import Sanctions

Team: importsanctions@businessandtrade.gov.uk.

For information on export controls:

• contact the Export Control Joint Unit (ECJU) on 020 7215 4594
• Email exportcontrol.help@businessandtrade.gov.uk
• Exporters are recommended to subscribe to the ECJU’s notices to exporters

Direct trade sanctions queries to otsi@businessandtrade.gov.uk.