August 2016

Iran Sanctions - Effects on Travelers to the USA

The European Union’s Emissions Trading System (EU ETS) was extended to cover emissions from shipping as of 1^st January 2024.

The EU ETS is limited by a 'cap' on the number of emission allowances. Within the cap, companies receive or buy emission allowances, which they can trade as needed. The cap decreases every year, ensuring that total emissions fall.

Each allowance gives the holder the right to emit:

One tonne of carbon dioxide (CO2), or;
The equivalent amount of other powerful greenhouse gases, nitrous oxide (N2O) and perfluorocarbons (PFCs).
The price of one ton of CO2 allowance under the EU ETS has fluctuated between EUR 60 and almost EUR 100 in the past two years. The total cost of emissions will vary based on the cost of the allowance at the time of purchase, the vessel’s emissions profile and the total volume of voyages performed within the EU ETS area. The below is for illustration purposes:
~A 30.000 GT passenger ship has total emissions of 20.000 tonnes in a reporting year, of which 9.000 are within the EU, 7.000 at berth within the EU and 4.000 are between the EU and an outside port. The average price of the allowance is EUR 75 per tonne. The total cost would be as follows:
~~9.000 * EUR 75 = EUR 675.000
~~7.000 * EUR 75 = EUR 525.000
~~4.000 * EUR 75 * 50% = EUR 150.000
~~Total = EUR 1.350.000 (of which 40% is payable in 2024)
For 2024, a 60% rebate is admitted to the vessels involved. However, this is reduced to 30% in 2025, before payment is due for 100% with effect from 2026.
Emissions reporting is done for each individual ship, where the ship submits their data to a verifier (such as a class society) which in turns allows the shipowner to issue a verified company emissions report. This report is then submitted to the administering authority, and it is this data that informs what emission allowances need to be surrendered to the authority.
The sanctions for non- compliance are severe, and in the case of a ship that has failed to comply with the monitoring and reporting obligations for two or more consecutive reporting periods, and where other enforcement measures have failed to ensure compliance, the competent authority of an EEA port of entry may issue an expulsion order. Where such a ship flies the flag of an EEA country and enters or is found in one of its ports, the country concerned will, after giving the opportunity to the company concerned to submit its observations, detain the ship until the company fulfils its monitoring and reporting obligations.
Per the EU’s Implementing Regulation, it is the Shipowner who remains ultimately responsible for complying with the EU ETS system.

There are a number of great resources on the regulatory and practical aspects of the system – none better than the EU’s own:

‍https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02003L0087-20230605

‍https://climate.ec.europa.eu/eu-action/transport/reducing-emissions-shipping-sector_en

‍https://climate.ec.europa.eu/eu-action/eu-emissions-trading-system-eu-ets/what-eu-ets_en‍

Sayın İlgili,

Grup Kluplerinden West of England aşağıdaki sirkuleri yayınlamıştır. Buna göre ABD'de bulunan ancak ABD vatandaşı olmayan bir kişi dahi ABD'de tatilde ya da iş gezisinde ya da bir ABD havaalanında aktarma uçak değiştirirken bile bu süre için ABD'li bir vatandaş gibi değerlendirileceğini dolayısı ile ABD'li vatandaşlar için halen devam eden İran ambargo statüsü olan "primary sanctions"ı ihlal etmemesi gerektiği bildirilmektedir. Ofis çalışanlarınızın bundan dolayı ABD'ye seyatlerinde İran ile yapabilecekleri ticari bağlantılar için herhangi bir şekilde telefon, email ya da herhangi bir iletişim aracı kullanmamaları tavsiye edilmektedir.

Iran Sanctions - Effects on Travelers to the USA

26th August 2016

The Club's US attorneys Freehill Hogan & Mahar recently clarified with OFAC the impact of continuing US primary sanctions against Iran on non-US persons travelling to the United States.

OFAC's view was clear and unequivocal; any person in the US for any period of time becomes a "US person" for purposes of the US primary sanctions against Iran and as such they must not enter into any discussions or communications by telephone or e-mail or any other means which concern Iran or Iranian entities. To do so would be a violation of US primary sanctions. Even a person who is merely changing flights at a US airport for a few hours becomes a "US person" for these purposes and subject to the restrictions.

Members should therefore be aware that, for example, chartering or operations staff who are on business trips or holidays to the United States may not enter into any discussions or correspondence over Iranian fixtures.

No items found.