General Note on the "Ordinarily Resident" Test for IEEPA-Based Embargo Prohibitions

Last substantive commentary amendment:
Mar. 15 2024

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TURBOFAC Commentary (2160 words)

General Note on the "Ordinarily Resident" Test for IEEPA-Based Embargo Prohibitions

1) Background

For ordinary, “IEEPA-based” embargo programs that attach to specific destinations, it is prohibited to supply services to persons physically present “in” or otherwise “ordinarily resident in” in the sanctioned destination. The physical presence and "ordinarily resident" in tests operate independent of each other, such that broad prohibitions on exports of services to a destination apply to the supply of services to persons located in a third country but "ordinarily resident" in the sanctioned destination. as well as persons that have no material connection to a sectioned destination other than their temporary presence in that destination. OFAC will not issue specific licenses for dealings involving citizens of territories subject to IEEPA-based embargoes unless the activities involve a person "in" or "ordinarily resident" in that territory (