Notice

NTI 2946: Iran (nuclear weapons) import sanctions

Published 1 July 2021

Iran (nuclear weapons) import sanctions

This notice provides an overview of the import prohibitions in force on certain goods imported into the UK, including Northern Ireland, that have originated or been consigned from Iran. It also sets out the licensing process for traders looking to import goods subject to prohibitions.

It should be read alongside the statutory guidance in case of conflict with the statutory guidance published by the FCDO, the statutory guidance will prevail.

Background

1) The Iran (Sanctions) (Nuclear) (EU Exit) Regulations 2019 came into force on 1 January 2021 and have replaced, with substantially the same effect, relevant existing EU legislation, corresponding prohibitions in the Open General Import Licence (OGIL) and related UK regulations.

2) 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

3) 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

4) There is one import prohibition specified in the Iran Nuclear Sanctions Regulations that is set out below:

Regulation 28

The import of the following goods is prohibited:

• arms and related materiel
  • this includes all military goods, and anything which falls within chapter 93 of the Goods Classification table, other than military goods
• missile-list goods
• nuclear-list goods
• other restricted goods

These good are prohibited where they are:

• consigned from or originating in Iran
  • this means that even if the immediate place the goods were shipped from was not Iran, the prohibition may still apply

Exceptions

5) Part 6 of the regulations also sets out exceptions to some of the import prohibitions which apply within certain defined circumstances. An exception applies automatically and does not require you to obtain a licence issued in accordance with the Regulations. There is one exception specified in the Iran (Nuclear Weapons) Sanctions Regulations that is set out below:

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 sanction licences

6) A licence is a written authorisation that permits an otherwise prohibited activity. DIT’s Import Licensing Branch (ILB) is responsible for administering the licensing provisions on behalf of the Secretary of State for all trade sanction licence applications from importers.

7) Where traders are looking to import goods prohibited under regulation 28, you will need to make a licence application through ILB’s Import Case Management System (ICMS). You will need to register on ICMS, if you do not already have an account, and submit an importer access request. Please then contact Import Controls ([email protected]) with details of your proposed import for further instruction. We will consider each application on a case-by-case basis to determine whether granting a licence would be consistent with the stated purposes of the sanctions regime and any UN or other relevant international law obligations. The Secretary of State for International Trade is ultimately responsible for decisions to grant or refuse a trade sanctions licence in any individual case.

8) For the prohibition under regulation 28, there are some specific activities that we consider likely to be consistent with the aims of the sanctions regime. These are set out in the below table and in further detail in the statutory guidance. If you think that your proposed activity falls within one of these specific descriptions, you should make this clear and explain why you believe this to be the case in your application for a licence.

9) You should not assume that a licence will be granted or engage in any activities prohibited by trade sanctions until your licence has been granted. If you are unclear on any aspect of the regulations and in what cases a trade sanctions licence is required, we recommend that you seek independent legal advice in the first instance.

Considerations for licensing

10) Licences may be issued for the import of ‘nuclear-list goods’, and the acquisition or transfer of nuclear-list technology, on the condition that the Secretary of State notifies the Joint Commission of all licences granted under these measures.

11) Licences may be issued for the import of other restricted goods, and the acquisition or transfer of other restricted technology, subject to one or more of the following conditions being met:

• a licence may be granted for the import of other restricted goods, or the acquisition or transfer of ‘other restricted technology’ unless the Secretary of State has reasonable grounds to determine that the actions concerned would contribute to reprocessing or enrichment related, heavy water-related or other nuclear related activities inconsistent with the Joint Comprehensive Plan of Action (JCPOA)

• a licence may be granted for the import of other restricted goods, or the acquisition or transfer of ‘other restricted technology’ where such activity relates directly to:

  • the necessary modification of two cascades at the Fordow facility for stable isotope production
  • the export of Iran’s enriched uranium in excess of 300 kilograms in return for natural uranium
  • the modernisation of the Arak reactor based on the agreed conceptual design and, subsequently, on the agreed final design of such reactor

This is provided that the activities will be undertaken strictly in accordance with the JCPOA.

Licence applications must demonstrate (and a licence may be refused if you cannot show) that the Secretary of State will have a right to verify the end-use and end-use location of any supplied item (in that such rights have been obtained and can be exercised effectively). An end use statement will need to be completed with your application.

12) In line with the requirements of the Northern Ireland Protocol, licences are not required for imports or exports of non-military goods covered by sanctions between Northern Ireland and EU Member States. Licences will however be required from the relevant EU Member State to move items to or from the sanctioned country. You will also have to comply with any other licensing requirements under UK import or export control legislation as applicable.

Enforcement of trade sanctions

13) The Customs and Excise Management Act 1979 (CEMA) makes it a criminal offence to contravene the trade sanctions. Some breaches of the import sanctions prohibitions are triable either way and carry a maximum sentence on indictment of 7 years’ imprisonment or a fine (or both). Under section 56 of the Iran (Sanctions) (Nuclear) (EU Exit) Regulations 2019, this maximum sentence has been modified to 10 years’ imprisonment. Any breach of the trade licensing provisions or information requirements in connection with general trade licences is also triable either way and carries a maximum sentence on indictment of 2 years’ imprisonment or a fine (or both). Please refer to part 4 of the CEMA for full details.

14) HM Revenue and Customs (HMRC) is responsible for enforcing the licensing restrictions and investigating suspected offences.

15) If you discover that you have breached any of the trade prohibitions or licensing provisions, you should report the irregularity to HMRC (sometimes known as ‘voluntary disclosure’) as soon as possible.

Enquiries

For further information on the import controls, contact [email protected].

For information on export controls:

• contact the Export Control Joint Unit (ECJU) on 020 7215 4594
• email [email protected]
• subscribe to the ECJU’s notices to exporters

For specific queries on export-related trade sanctions, contact [email protected].

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This document is for information purposes only and has no force in law. Please note that where legal advice is required, importers should make their own arrangements.