§560.204 Prohibited exportation, reexportation, sale, or supply of goods, technology, or services to Iran.
Except as otherwise authorized pursuant to this part, and notwithstanding any contract entered into or any license or permit granted prior to May 7, 1995, the exportation, reexportation, sale, or supply, directly or indirectly, from the United States, or by a United States person, wherever located, of any goods, technology, or services to Iran or the Government of Iran is prohibited, including the exportation, reexportation, sale, or supply of any goods, technology, or services to a person in a third country undertaken with knowledge or reason to know that:
(a) Such goods, technology, or services are intended specifically for supply, transshipment, or reexportation, directly or indirectly, to Iran or the Government of Iran; or
(b) Such goods, technology, or services are intended specifically for use in the production of, for commingling with, or for...
i) BACKGROUND
560.204 is the broad export ban element of the overarching embargo against Iran; implementing an identically worded provision in Executive Order 13059 - Prohibiting Certain Transactions With Respect to Iran. It is the most frequently interpreted and frequently violated provision among all of OFAC's active sanctions regulations. Some elements of the provision are discussed below.
*THE "REASON TO KNOW" QUALIFIER
On paper this provision is substantially different from analogous IEEPA-based export ban provisions, e.g. those of the NKSR (510.206) and SySR (542.207, for services). The thing that distinguishes the ITSR provision from all others is the structure, where the...