Enforcement Release - Keysight Technologies, Inc

Date issued: Sep. 24 2020

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TURBOFAC Commentary (273 words)

Notes:

1) The Keysight case is the first reported enforcement action that is based solely on violations of 560.205 of the ITSR, which applies to re-exports to Iran of "U.S.-origin" items by non-U.S. persons.

From a legal perspective, the basis for liability appears to be relatively straightforward. The applicability of 560.205 can be tricky as it relates to the question of whether a given item re-exported meets the 10 percent threshold, but that appears to have not been an issue here.

One thing that is notable about the way in which the enforcement action is written is that it confirms that the scope of "U.S.-origin goods or technology," as that term appears in 560.205, is limited to "goods that incorporate[] 10 percent or more of...