Enforcement Release: Construction Specialties Inc.

Date issued: Aug. 16 2023

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TURBOFAC Commentary (370 words)

Notes:

1) From a legal standpoint, this is an unusually straightforward settlement agreement/enforcement release combination, breaking no new ground that we can discern. Compare e.g. Kollmorgen Corporation, Whitford Worldwide Company, and PACCAR Inc., which are all similar cases in which non-U.S. subsidiaries of U.S. companies “went rogue” and acted in violation of the ITSR, thereby subjecting the U.S. person parent company to liability.

In this case, actions taken by the Dubai entity, i.e. ordering goods from the U.S. for shipment to Iran, were straightforward violations of the ITSR (i.e. “causing” the exportation of goods from the U.S. to a third country when they were specifically intended for Iran). Due to the peculiarities of section 560.215 of the ITSR, OFAC’s charges were limited to the 560.215 violations,...