US Should Increase Efforts to Ease Humanitarian Exports to Iran, Former Government Officials Say

The U.S. should expand the scope of humanitarian license exceptions for exports to Iran and add staffing within the Treasury Department to speed up the licensing process, members of the European Leadership Network and The Iran Project said April 6. The statement, signed by 25 former U.S. and European government officials, also said the U.S. needs to do more to assure companies, banks and organizations they will not be targeted for exporting humanitarian items to Iran. The letter follows similar calls by U.S. lawmakers, who said sanctions are hindering life-saving exports to Iran (see 2004010019).

“Despite humanitarian exemptions provided under US and international law, these sanctions make the importation of medicine, medical equipment and raw materials needed to produce these goods domestically slower, more expensive, and complicated -- when even possible -- by deterring potential suppliers out of fear of overstepping sanctions’ limits,” the statement said.

U.S. sanctions on Iran are “the most extensive coercive economic measures ever imposed on a country,” the former officials said, adding that a reduction in pressure “would have a significant impact on the ability of Iran’s healthcare system to respond to the COVID-19 outbreak.” They also called on the U.S. to be more transparent. “The United States has said that it has offered assistance to Iran but has not made the details or any potential conditions public.”

The Trump administration should expand the scope of humanitarian exemptions for exports to include items needed to combat the virus, the officials said. They said “many” goods -- including oxygen generators, full-face mask respirators and thermal imaging equipment -- require a specific license from the Office of Foreign Assets Control. Even in cases where there is “no U.S. connection,” those items are not covered by the humanitarian exemption under General License No. 8, the officials said, which authorizes certain humanitarian exports to Iran. “This is a significant impediment to European exports of these items,” the statement said.

To help with exports, the administration should bolster OFAC with staffing and “other resources” to speed up the licensing process and allow more manufacturers to export, the statement said. The U.S. should also send “comfort letters” to banks, manufacturers, shippers and insurers, which would provide written assurance that they will not be targeted for sanctions violations if they are conducting due diligence and exporting humanitarian goods.

Although the U.S. introduced the Swiss Humanitarian Trade Arrangement (see 2002270017) to guarantee humanitarian exports to Iran, its requirements may be too difficult to meet, the officials said. Its “stringent reporting requirements” should be relaxed because they are a “significant disincentive to any Swiss companies that might consider making use of the SHTA,” the statement said (see 2003030015).

“Just as the COVID-19 pandemic has upended every aspect of the global economy and of human lives and health, it has drastically changed the impact of a US policy designed for a different purpose and conditions,” the officials said. “Targeted sanctions relief would be both morally right and serve the health and security interests of the United States, Europe, and the rest of the world.”

The State Department said Iran is conducting a “foreign influence campaign to obtain sanctions relief,” calling it a “sanctions relief scam,” according to an April 6 fact sheet. Any relief provided to Iran will be used “to raise funds for its terror operations” instead of helping combat the coronavirus, the agency said. The State Department also said U.S. sanctions are not stopping humanitarian exports to Iran, adding that the U.S. has “broad authorizations” that allow for food, medical and commodity exports.