OFAC Interpretive Guidance - Case No. IA-2012-294348-1

Ed. Note: if you’re new to TURBOFAC, please take note that the text string filtration function generally shouldn’t be used for terms such as “ordinarily resident,” “causing” or “new debt”. For research on the meaning of words and phrases such as those, i.e. terms central to the key legal issues in sanctions law that appear on a cross-programmatic basis, you’re typically better off locating and checking the appropriate box in the “Key Legal Issues” search category, which will limit the results to those that have been manually assessed as being relevant for the interpretation of the terms at issue.

Try typing your search term (“ordinarily resident,” “new debt,” or something else) in the “Find a Search Filter” box at the top of the page, and the corresponding “Key Legal Issues” check box will pop up instantly, if one exists. Once you check the box (e.g. “new debt,” with ~55 results), you can always use the text string filtration function to further refine your search (e.g. by typing “invoice” and narrowing the ~55 results to ~10).

Note in addition that the same applies to text string searches such as “14071” (if you’re looking for items related to EO 14071). By typing “14071” in the “Find a Search Filter” field up top, you will be able to instantly narrow the results down to items manually assessed as relating to EO 14071. Ditto terms such as “515.204” or “Iran General License G” (try the “Discrete Legal Provision” search category). Please contact [email protected] or [email protected] with any questions on search results and efficiency.

Please click "Apply Text String Filters" again after clicking the "Close" button immediately below.

TURBOFAC Commentary (167 words)

Notes:

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...

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Case No. IA-2012-294348-1

TURBOFAC Commentary (167 words)