Case No. IA-2012-294348-1

Date issued: Mar. 26 2013

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TURBOFAC Commentary (167 words)


1) Guidance is a restatement of scope of general licenses amended subsequent to the initial submission of the request to OFAC.

It is possible that the applicant wanted to verify that "brokering services" were not considered ordinarily incident (560.405) transactions underlying otherwise generally licensed exports of agricultural commodities to Iran. If the general license specifically addressing those transactions did not make it clear, this guidance does.

OFAC has not provided a clear rationale on why brokering is not ordinarily incident to the transaction being brokered, while shipping, payment processing, negotiating terms, etc. are. OFAC may distinguish between activities of third parties that facilitate transactions between U.S. persons and sanctioned parties already agreed upon (e.g. shipping and insurance), and those activities (such as brokering) that have the effect of facilitating agreements that would not have existed but for...