Case No. IA-16053

Date issued: Apr. 01 2013

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TURBOFAC Commentary (1903 words)

Key Takeaway – No License Required for Exportation of Financial Services to Certain Individuals in but not Ordinarily Resident Iran; Relevance of Travel Exemption

Notes:

1) This (particularly illuminating) guidance letter has implications for the scope of the exemption for transactions ordinarily incident to travel, as well as the relationship between 560.204 of the ITSR (exportation of services) and 560.320 (the definition of "Iranian accounts").

The redactions make it unclear whether the U.S. citizen applicant is actually "ordinarily resident" in Iran, and it seems as though OFAC is not sure either, so OFAC answers the questions both ways.

The export of services to a person "ordinarily resident" in Iran constitutes an export "to Iran" (560.204/560.410) even if the person in Iran is a "U.S. person.” The ordinarily resident in...