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Case No. IA-2013-300347-1

Date issued: Aug. 05 2013

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Case No. IA-2013-300347-1

Todd T. Erickson, Esq.
Cargill, Incorporated
15407 McGinty Road West MS # 24
Wayzata, MN 55391

Dear Mr. Erickson:

This is in reply to your correspondence dated February 7, 2013, on behalf of Cargill, Incorporated, and its subsidiaries, including Cargill International, S.A. (collectively, "Cargill"), to the Office of Foreign Assets Control ("OFAC"), seeking guidance regarding Cargill’s ability to engage in court proceedings, inside and outside Iran, related to commercial disputes with an Iranian purchaser of its agricultural commodities. You indicate in the letter that the proceedings would be initiated by Cargill "for the purpose of protecting, preserving and defending its legal rights, as well as in response to and to defend itself in proceedings initiated by other parties in Iran."

The Iranian Transactions and Sanctions Regulations, 31 C.F.R. Part 560 (the "ITSR"),...

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TURBOFAC Commentary (937 words)

Notes:

1) The heading of 560.510, referring to "disputes between the United States or United States nationals and the Government of Iran," would suggest that the generally licensed conduct does not attach to commercial disputes with private Iranian parties in Iran, but this is clearly not the case (compare Case No. IA-2013-304698).

2) 560.510(c)(1) of the ITSR authorizes "[a]ll transactions are authorized with respect to the importation of Iranian-origin goods and services necessary to the initiation and conduct of legal proceedings, in the United States or abroad, including administrative, judicial, and arbitral proceedings and proceedings before tribunals." Reference is made to "importation of Iranian-origin goods and services" (prohibited by 560.201 and 560.206), but no mention is made in dealings in property in which a person blocked pursuant to 560.211—e.g. the Government...