Notable Examples Illustrating the Operation of the "Facilitation" Concept (System Ed. Note)

Last substantive commentary amendment:
Sep. 25 2023

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TURBOFAC Commentary (10513 words)

Notable Selected Examples Illustrating the Operation of the Facilitation Concept

 

1)     Examples Illustrating the Operation of the “Facilitation” Concept in the Context of U.S. Persons Facilitating Specific, Concrete Activities in Which They Could Not Engage Directly (and Vice Versa)

 

(i)             "Refer[ring] to a foreign person purchase orders, requests for bids, or similar business opportunities...to which the United States person could not directly respond as a result of the [applicable] prohibitions..."(see e.g. 542.413(b)). “Referral” of prohibited business to an offshore subsidiary (Communications and Power Industries LLC).

 

(ii)            “[A]pproving…capital expenditure requests from operations in [sanctioned countries] for the manufacture of new tools and for certain expenditures [related to sanctioned country operations]; [] directing and overseeing the transfer of oilfield equipment from projects in non-sanctioned countries to projects in [sanctioned countries]; [] making and implementing business decisions specifically concerning projects in [sanctioned countries]; and []...