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New General License Allows Some Aircraft Export Negotiations with Iran

Tuesday, March 29, 2016
Sandler, Travis & Rosenberg Trade Report

The Department of the Treasury’s Office of Foreign Assets Control has issued General License I authorizing U.S. persons to enter into, and to engage in all transactions ordinarily incident to the negotiation of and entry into, contracts for activities eligible for authorization under OFAC’s policy allowing for the case-by-case licensing of individuals and entities seeking to export, reexport, sell, lease or transfer to Iran commercial passenger aircraft, and related parts and services, for exclusively commercial passenger aviation.

However, the performance of any such contract must be made expressly contingent upon the issuance of a specific license by OFAC authorizing the activities to be performed. For purposes of this general license, the term “contingent contracts” 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.

This general license does not authorize any transactions or dealings with any person whose property and interests in property are blocked pursuant to any part of 31 CFR chapter V other than part 560.

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