A merican Club Circular No. 45/18 1 NO VEMBER 29, 2018 CI RCULAR NO. 45/18 TO MEMBERS OF THE ASSOCIATION Dear Member: IRAN SANCTIONS: THE DIRECT OR INDIRECT SALE, SUPPLY, OR TRANSFER TO OR FROM IRAN OF GRAPHITE, RAW OR SEMI-FINISHED METALS, SUCH AS ALUMINUM AND STEEL, COAL, AND SOFTWARE FOR INTEGRATING INDUSTRIAL PROCESSES. In Club Circular 41/18 of November 6, 2018 Members were informed of the reimposition of US secondary sanctions against Iran. This included, inter alia, sanctions on the direct or indirect sale, supply, or transfer to or from Iran of graphite, raw, or semi-finished, metals such as aluminum and steel, coal, and software for integrating industrial processes. This provision is conditional upon a US government determination regarding the use of materials by Iran. The details of t his provision, in relevant part, are as follows: ( 1) I N GENERAL- The President shall impose 5 or more of the sanctions described in section 6(a) of the Iran Sanctions Act of 1996 (Public Law 104-172; 50 U.S.C. 1701 note) wit h r espect to a person if the President determines that the person knowingly, on or after the date that is 180 days after the date of the enactment of this Act, sells, supplies, or transfers, directly or indirectly, to or from Iran— ( A)a precious metal; ( B)a material described in subsection (d) (e.g., coal, iron ore) determined pursuant t o s ubsection (e)(1) to be used by Iran as described in that subsection; D etermination With Respect to Use of Materials- Not later than 180 days after the date of the enactment of this Act, and every 180 days thereafter, the President shall submit to the appropriate congressional committees and publish in the Federal Register a report that contains the determination of the President with respect to— ( 1) w hether Iran is— ( A) us ing any of the materials described in subsection (d) as a medium for barter, swap, or any other exchange or transaction; or ( B) l isting any of such materials as assets of the Government of Iran for purposes of the national balance sheet of Iran. A merican Club Circular No. 45/1 8 2 In response to the Club’s request for guidance and clarification, it has recently been advised by the US Department of State that the US Government has made no determination with respect to the use of materials. Due to the absence of such determination, sanctions on the direct or indirect sale, supply, or transfer to or from Iran of graphite, raw, or semi-finished, metals such as aluminum and steel, coal, and software for integrating industrial processes do not apply and are not in force, as was previously apprehended to be the case. Consequently, the direct or indirect sale, supply, or transfer to or from Iran of graphite, raw, or semifinished, metals such as aluminum and steel, coal, and software for integrating industrial processes may be permissible and insurance cover in respect thereof may be available from the Club depending on all the facts of a particular voyage. The American Club will provide confirmations as to the availability of cover upon disclosure by Members of all the details of a contemplated voyage. *** Members are reminded that pursuant to American Club rules there is no cover for unlawful voyages or for voyages where the extension of cover would violate or pose a risk of violating sanctions prohibitions and also that causing a violation could entail the imposition of sanctions or penalties. Members are accordingly reminded to proceed with extreme caution in dea