31 CFR § 560.522 - Allowable payments for overflights of Iranian airspace.

Date issued: Dec. 26 2012

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TURBOFAC Commentary (768 words)

Notes:

 

1) Compare SySR and CACR analogues (542.518 and 515.548).


2) The existence of this GL suggests that OFAC does not consider overflights of U.S.-related aircraft to be "ordinarily incident" to travel, and therefore exempt from regulation. If overflights themselves were exempt, payments for overflights would also be exempt. See Spirit Airlines, Inc. (2008) for overflight-related enforcement action. The same is true of air ambulance services. What the GL does not clarify, however, is whether overflights of a sanctioned destination are necessarily within the scope of OFAC's jurisdiction to begin with, presuming that no "services" are received in connection with the overflight.


3) [RESERVED]


4) More recently issued GLs cover overflights and other activities where the aircraft is “chartered to" a U.S. person (e.g. 515.548). This would, at a...