Civil Enforcement Information - Gibson Overseas, Inc.

Date issued: Jun. 06 2007

TURBOFAC Commentary (217 words)

Notes:

1) This is one of the few Iranian vessel-related enforcement actions to be issued prior to the designation of the IRISL as a blocked NPWMD, such that the company and its vessels were considered blocked property in which no U.S. person may deal.

Here, the basis for the penalty appears to be the simple "transaction" related to "services" of "Iranian origin." This fact pattern may have been classified a violation of 560.206 (Prohibited trade-related transactions with Iran), rather than an "import of services" (560.201), possibly because the goods did not travel to or from the U.S., and the service was not for the benefit of a U.S. person.

2) There are two notable things about this. First, it means that the notion of an "import of services" within the meaning of 560.201 is effectively made redundant by 560.206, because it is hard to imagine a situation in which an "import" of Iranian origin services did not also amount to an a "transaction or dealing in or related to...Goods or services of Iranian origin" within the meaning of 560.206. In any event, recent enforcement actions suggest that because the use of the services of a U.S. person could make the transaction an "import of services" irrespective of the starting and ending points of the vessels.