Regulation 9 Exceptions and licences

after regulation 37ZA (finance: humanitarian exception), insert—

“Finance: exceptions relating to insurance and reinsurance services

37ZB

(1)

The prohibition in regulation 17C(1) (insurance and reinsurance services) is not contravened by—

(a)

the provision of compulsory or third party insurance to an Iranian person located in the United Kingdom;

(b)

the provision of insurance for a diplomatic mission or consular post of Iran in the United Kingdom.

(2)

The prohibition in regulation 17C(1), insofar as it prohibits the provision of insurance or reinsurance services to persons acting on behalf of, or at the direction of, a person connected with Iran, is not contravened by—

(a)

the provision of insurance or reinsurance services to an individual acting on behalf of or at the direction of a person connected with Iran, provided that—

(i)

the insurance or reinsurance is for the individual's personal use, and

(ii)

the individual is not a designated person;

(b)

the provision of insurance or reinsurance services to a person (“P”) who is the owner of a ship or aircraft which is chartered, or a vehicle which is hired, by a person connected with Iran, provided that P is not a designated person.

(3)

In this regulation—

• “consular post” has the meaning given in regulation 37D(5);

• “designated person” means a person who is designated under regulation 5 for the purposes of regulations 12 to 17;

• “diplomatic mission” has the meaning given in regulation 37D(5);

• “Iranian person” means—

  1. (a)

     a national of Iran, or

  2. (b)

     a body incorporated or constituted under the law of Iran.”;

in regulation 37A (exception for authorised conduct in a relevant country), in paragraph (1), after “17 (asset-freeze etc)” insert “, regulations 17A to 17D (investment, financial services and financial markets)”;

after regulation 37A, insert—

“Exception for emergencies in certain cases

37B

(1)

The prohibitions specified in paragraph (2) are not contravened by any act done by a person (“P”), where P provides justification to the Secretary of State within the relevant period that the act is an act dealing with an emergency.

(2)

Paragraph (1) applies to the prohibitions in—

(a)

regulation 17C(1) (insurance and reinsurance services), insofar as it applies to insurance and reinsurance for the maritime transportation of oil and petroleum products;

(b)

Chapter 1B of Part 5 (Exports and related activities: energy-related goods and energy-related technology);

(c)

Chapter 1C of Part 5 (Sectoral software goods and sectoral software and technology);

(d)

Chapter 2A of Part 5 (Imports and related activities: gold, precious metals and diamonds);

(e)

Chapter 2B of Part 5 (Imports and related activities: oil and petroleum products);

(f)

Chapter 2C of Part 5 (Imports and related activities: petrochemicals);

(g)

Chapter 2D of Part 5 (Imports and related activities: natural gas);

(h)

regulation 33C (technical assistance relating to certain tankers and cargo vessels);

(i)

regulation 33D (technical assistance relating to ships);

(j)

regulation 33E (provision of services relating to specified ships);

(k)

regulation 33F (procurement of services relating to specified ships);

(l)

regulation 36F(2) (prohibition on operating specified ships).

(3)

In this regulation—

• “an act dealing with an emergency” means an act assisting with the urgent prevention or mitigation of an event likely to have a serious and significant impact on human health or safety, infrastructure or the environment;

• “relevant period”, in relation to an act, means the period of 5 working days beginning with the day on which the act is done.

Trade: exceptions in relation to energy-related goods and energy-related technology

37C

(1)

The prohibitions in regulations 27M (financial services and funds relating to energy-related goods and energy-related technology) and 27N (brokering services: non-UK activity relating to energy-related goods and energy-related technology) are not contravened in relation to the provision of insurance or reinsurance to a relevant person where the provision of such insurance or reinsurance is not connected with the energy sector in Iran.

(2)

The prohibitions in Chapter 1B of Part 5 (exports and related activities: energy-related goods and energy-related technology) and Chapter 1C of Part 5 (sectoral software goods and sectoral software and technology) are not contravened by a relevant activity that is necessary for the purposes of a UK petroleum project.

(3)

In this regulation—

• “energy-related goods” has the meaning given in regulation 34(1) (interpretation of Part 5);

• “energy-related technology” has the meaning given in regulation 34(1);

• “relevant activity” means any activity which would, in the absence of this regulation, contravene the prohibitions in Chapters 1B and 1C of Part 5;

• “relevant person” means a person who is not a person connected with Iran;

• “UK petroleum project” means an oil or gas exploration or production project that is wholly or partially located within—

  1. (a)

     the United Kingdom;

  2. (b)

     waters adjacent to the United Kingdom up to the seaward limits of the territorial sea, or the seabed and subsoil below them;

  3. (c)

     areas from time to time designated under section 1(7) of the Continental Shelf Act 1964 (designation of areas of continental shelf)^f1, and any waters within the limits of such areas.

Trade: exceptions relating to sectoral software goods and sectoral software and technology

37D

(1)

The prohibitions in Chapter 1C of Part 5 (sectoral software goods and sectoral software and technology) are not contravened by any act done by a person (“P”) in satisfaction of an obligation to a person connected with Iran where that act is to discharge, or comply with, UK statutory or regulatory obligations, such obligations not arising under contract, provided that P notifies the Secretary of State of that act before the end of the period of 12 months beginning with the first day on which the act is done.

(2)

The prohibitions in Chapter 1C of Part 5 are not contravened by any act done by a person (“Q”) in satisfaction of an obligation arising under a contract concluded before 8th September 2026, or an ancillary contract necessary for the satisfaction of such a contract, provided that—

(a)

the act is carried out before the end of 7th March 2027, and

(b)

Q notifies the Secretary of State of that act, before or after the act is carried out, before the end of 7th March 2027.

(3)

The prohibitions in Chapter 1C of Part 5 are not contravened by activities relating to sectoral software goods, or sectoral software and technology, where those goods or software and technology are of a non-commercial nature or for personal use.

(4)

The prohibitions in Chapter 1C of Part 5 are not contravened by activities relating to sectoral software goods, or sectoral software and technology, which is necessary for the official purposes of a diplomatic mission or consular post in Iran, or an international organisation enjoying immunities in accordance with international law.

(5)

For the purposes of this regulation—

• “consular post” has the same meaning as in the Vienna Convention on Consular Relations done at Vienna on 24 April 1963^f2, and any reference to the functions of a consular post is to be read in accordance with that Convention;

• “diplomatic mission”, and any reference to the functions of a diplomatic mission, is to be read in accordance with the Vienna Convention on Diplomatic Relations done at Vienna on 18 April 1961^f3;

Trade: exceptions in relation to oil and petroleum products, petrochemicals and natural gas

37E

(1)

The prohibitions in Chapters 2B, 2C and 2D of Part 5 are not contravened by any relevant activity in relation to any oil and petroleum products, petrochemicals or natural gas which is necessary for the official purposes of a diplomatic mission or consular post in Iran, or an international organisation enjoying immunities in accordance with international law.

(2)

For the purposes of this regulation—

• “consular post” and “diplomatic mission” have the meanings given in regulation 37D(4);

• “natural gas” has the meaning given in regulation 34(1);

• “oil and petroleum products” has the meaning given in regulation 34(1);

• “petrochemicals” has the meaning given in regulation 34(1);

• “relevant activity” means any activity which would, in the absence of this regulation, contravene any of the prohibitions in Chapter 2B, 2C or 2D of Part 5.

Trade: exception in respect of the acquisition of goods

37F

(1)

The prohibitions specified in paragraph (3) do not apply in relation to relevant goods located in the United Kingdom or the Isle of Man having been lawfully imported there.

(2)

The prohibitions specified in paragraph (3)(e) to (l) do not apply to a United Kingdom national in Iran engaging in any activity subject to any of those prohibitions where—

(a)

the relevant goods are located in Iran, and

(b)

those relevant goods are for the purposes of personal use, in Iran, by that United Kingdom national, or their immediate family members.

(3)

The prohibitions specified in this paragraph are those in—

(a)

regulation 31E(1) (acquisition of gold, precious metals and diamonds);

(b)

regulation 31G(1)(b) (technical assistance relating to the acquisition of gold, precious metals and diamonds);

(c)

regulation 31H(1)(b) (financial services or funds relating to the acquisition of gold, precious metals or diamonds);

(d)

regulation 31I(1) (brokering services relating to gold, precious metals or diamonds) insofar as the prohibition relates to arrangements specified in regulation 31H(1)(b);

(e)

regulation 31K(1) (acquisition of oil and petroleum products);

(f)

regulation 31M(1)(b) (technical assistance relating to the acquisition of oil and petroleum products);

(g)

regulation 31N(1)(b) (financial services and funds relating to the acquisition of oil and petroleum products);

(h)

regulation 31O(1) (brokering services relating to oil and petroleum products) insofar as the prohibition relates to arrangements specified in regulation 31N(1)(b);

(i)

regulation 31Q(1) (acquisition of petrochemicals);

(j)

regulation 31S(1)(b) (technical assistance relating to the acquisition of petrochemicals);

(k)

regulation 31T(1)(b) (financial services and funds relating to the acquisition of petrochemicals);

(l)

regulation 31U(1) (brokering services relating to petrochemicals) insofar as the prohibition relates to arrangements specified in regulation 31T(1)(b);

(m)

regulation 31W(1) (acquisition of natural gas);

(n)

regulation 31Y(1)(b) (technical assistance relating to the acquisition of natural gas);

(o)

regulation 31Z(1)(b) (financial services and funds relating to the acquisition of natural gas);

(p)

regulation 31Z1 (brokering services relating to natural gas) insofar as the prohibition relates to arrangements specified in regulation 31Z(1)(b).

(4)

In this regulation—

• “immediate family member” means—

  1. (a)

     a wife or husband;

  2. (b)

     a civil partner;

  3. (c)

     a parent or step-parent;

  4. (d)

     a child or step-child;

  5. (e)

     a sibling or step-sibling;

  6. (f)

     a niece or nephew;

  7. (g)

     an aunt or uncle;

  8. (h)

     a grandparent;

  9. (i)

     a grandchild;

• “relevant goods” means any thing specified in Schedules 1B (gold, precious metals and diamonds), 1E (natural gas), 1F (oil and petroleum products) and 1H (petrochemicals) as applicable.

Trade: exceptions in relation to maritime goods and maritime technology

37G

(1)

The prohibitions in Chapters 1 (Exports and related activities) to 3 (Other trade restrictions in relation to Iran) of Part 5 (Trade)—

(a)

insofar as they relate to maritime goods, do not apply to the export, supply or delivery, acquisition or making available of such goods, or to the provision of technical assistance, financial services, funds or brokering services, necessary for a purpose specified in paragraph (2);

(b)

insofar as they relate to maritime technology, do not apply to the acquisition, transfer or making available of such technology, or to the provision of technical assistance, financial services, funds or brokering services, necessary for a purpose specified in paragraph (2).

(2)

The purposes are—

(a)

non-military use by a non-military end-user;

(b)

addressing a health emergency;

(c)

the urgent prevention or mitigation of an event likely to have a serious and significant impact on human health and safety or on the environment; or

(d)

providing a response to a natural disaster.

(3)

For the purposes of this regulation, “maritime goods” and “maritime technology” have the meanings given in regulation 34 (interpretation of Part 5).”;

after regulation 39 (exception relating to services provided to certain ships and aircraft), insert—

“Trade: exceptions in relation to vessels

39A

(1)

For the purposes of regulation 33B (making available certain vessels), the removal of a vessel from the United Kingdom to Iran is not making available a vessel designed or modified for the transport or storage of oil and petroleum products, provided that the following conditions are met—

(a)

the vessel is removed under its own power;

(b)

the removal of the vessel is not for the purpose of—

(i)

a transfer of ownership of the vessel or any of its component parts, or

(ii)

a change of the operator of the vessel.

(2)

In this regulation, “operator”, in relation to a vessel, means the person having the management of the vessel.

Trade: exceptions relating to specified ships

39B

(1)

The prohibitions specified in paragraph (2) are not contravened by conduct that is necessary to protect or avoid endangering—

(a)

the safety of any ship, or

(b)

the life of any person.

(2)

Paragraph (1) applies to the prohibitions—

(a)

in regulation 33E (provision of services relating to specified ships);

(b)

in regulation 33F (procurement of services relating to specified ships).

Aircraft: exceptions from prohibitions

39C

(1)

The prohibition in regulation 36A(1) (movement of aircraft) is not contravened by the landing of an Iranian aircraft in the United Kingdom—

(a)

if failing to land would endanger the lives of persons on board or the safety of the aircraft;

(b)

if the aircraft is engaged in non-scheduled international air services and is exercising its right to land in the United Kingdom for non-traffic purposes in accordance with Article 5 of the Chicago Convention;

(c)

if the aircraft is engaged in scheduled international air services and is exercising its right to land in the United Kingdom for non-traffic purposes in accordance with section 1 of Article 1 of the IASTA.

(2)

A direction given under regulation 36A(3) to (5) is not contravened by conduct that is necessary to—

(a)

avoid endangering the lives of persons on board or the safety of the aircraft,

(b)

protect the safety of another aircraft, or

(c)

protect the safety of persons on the ground.

(3)

In this regulation—

• “the Chicago Convention” means the Convention on International Civil Aviation and its Annexes, signed at Chicago on 7th December 1944^f4;

• “the IASTA” means the International Air Services Transit Agreement signed at Chicago on 7th December 1944^f5;

• “Iranian aircraft” has the same meaning as in regulation 36A(6);

• “non-traffic purposes” is to be read in accordance with Article 96(d) of the Chicago Convention.

Ships: exceptions from prohibitions on port entry

39D

(1)

The prohibition in regulation 36G(1) (prohibition on port entry) is not contravened by providing a ship with access to a port if—

(a)

a port entry direction has been given in relation to the ship under regulation 36I(1) (movement of ships), or

(b)

the access is needed by the ship in a case of emergency.

(2)

The prohibition in regulation 36G(2) is not contravened by the entry into port of a ship if—

(a)

a port entry direction has been given in relation to the ship under regulation 36I(1), or

(b)

the entry is needed by the ship in a case of emergency.

Ships: exceptions from prohibition on operating specified ships

39E

(1)

A person does not contravene the prohibition in regulation 36F(2) (operating specified ships) by conduct in the United Kingdom or in the territorial sea where the person—

(a)

is not a United Kingdom person, and

(b)

the person’s presence in the United Kingdom or in the territorial sea arises directly from an exercise of either—

(i)

the right of innocent passage, or

(ii)

the right of transit passage,

in accordance with the provisions of the United Nations Convention on the Law of the Sea^f6.

(2)

A person does not contravene the prohibition in regulation 36F(2) by conduct that is necessary to protect or avoid endangering—

(a)

the safety of any ship, or

(b)

the life of any person.”;

in regulation 40(1) (Treasury licences), after “17 (asset-freeze etc)”, insert “and regulations 17A to 17D (investments, accounts and corresponding banking relationships, insurance and reinsurance and sale or purchase of bonds)”;

after regulation 41 (trade licences), insert—

“Aircraft licences

41A

The prohibition in regulation 36A(1) (prohibition on landing) does not apply to anything done under the authority of a licence issued by the Secretary of State under this regulation.

Ships licences

41B

The prohibitions in regulation 36F(1) and (2) (prohibition on chartering or operating specified ships) do not apply to anything done under the authority of a licence issued by the Secretary of State under this regulation.”;

in regulation 42(1), for “and trade licences” substitute “, trade licences, aircraft licences and ships licences”;

after regulation 44 (trade: licensing offences), insert—

“Aircraft: licensing offences

44A

(1)

A person (“P”) commits an offence if P knowingly or recklessly—

(a)

provides information that is false in a material respect, or

(b)

provides or produces a document that is not what it purports to be,

for the purpose of obtaining an aircraft licence (whether for P or anyone else).

(2)

A person who purports to act under the authority of an aircraft licence but who fails to comply with any condition of the aircraft licence commits an offence.

(3)

A licence in respect of which an offence under paragraph (1) has been committed is to be treated as void from the time at which it was issued.

Ships: licensing offences

44B

(1)

A person (“P”) commits an offence if P knowingly or recklessly—

(a)

provides information that is false in a material respect, or

(b)

provides or produces a document that is not what it purports to be,

for the purpose of obtaining a ships licence (whether for P or anyone else).

(2)

A person who purports to act under the authority of a ships licence but who fails to comply with any condition of the ships licence commits an offence.

(3)

A licence in respect of which an offence under paragraph (1) has been committed is to be treated as void from the time at which it was issued.”.