Enforcement Release: SCG Plastics Co., Ltd.

Date issued: Apr. 19 2024

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TURBOFAC Commentary (627 words)

Notes:

1) LEGAL BASES FOR LIABILITY

From a legal basis standpoint, the SCG Plastics case breaks no new legal ground, though it is the first case in which violations were based on a non-U.S. person “causing” a dealing in / facilitation of a dealing in Iranian origin goods when there may have been no other Iranian nexus to the transaction. More specifically, the Thai entity issued invoices that called for payments to a USD bank account where such payments were related to Iranian-origin goods. This constitutes a violation of 560.203 since the Thai entity “caused” U.S. person banks to facilitate dealings in Iranian-origin goods (560.206 and 560.208). This logic is consistent with cases such as Enforcement Release - Danfoss A/S (as it relates to causing through the issuance of invoices) and ZAG IP, LLC...