OFAC Interpretive Guidance - Case No. NK-93078 [Application Included in Original PDF]

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TURBOFAC Commentary (774 words)

Notes:

1) See native PDF file for application.

This case is a notable illustration of how, on occasion, OFAC can effectively prohibit transactions that the applicable laws do not prohibit on their face through the intentional failure/refusal to respond to licensing and guidance requests.

Here the applicant asked for "authorization to purchase certain goods from North Korea." As noted by OFAC, the applicant was silent on whether the request was to just purchase the goods, or actually import them. The request pertained to a de minimis quantity of an ore for testing purposes, where the obvious implication was that if the ore "passed" the test, it would have meant more business for the North Korean producer.

At the time the request was initially made, the U.S. had lifted the vast majority of the sanctions program previously in place against North Korea. Prior to June, 2008, the

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Case No. NK-93078 [Application Included in Original PDF]

TURBOFAC Commentary (774 words)