Case No. MUL-367

Date issued: Aug. 05 2011

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TURBOFAC Commentary (1307 words)

Notes:

1) BACKGROUND

This guidance letter is notable for being the only scenario in the Research System in which OFAC directly addresses the sanctions implications of software of U.S. origin that is known to be “published” for EAR purposes. The guidance is also notable for its unusual application of the “inventory rule” in the software context.

2) APPLICATION OF THE GENERAL INVENTORY RULE AND “REASON TO KNOW” IN THE EXPORTATION OF SOFTWARE CONTEXT

OFAC addresses the potential indirect exportation of certain published software to embargoed destinations through “international organizations”. It is highly likely that the “international organizations” at issue were international organizations of which Cuba, Iran or Sudan were actually members, hence the heightened re-export risk once the international organizations were provided with the software.

The NNSA noted that it was “preparing...