OFAC Regulatory Provisions - 31 CFR § 542.404 - Transactions ordinarily incident to a licensed transaction.

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 (315 words)

Notes:

1) Except as otherwise discussed, this provision is substantively identical across sanctions programs. OFAC appears to interpret, in a harmonious manner cross-programmatically, the construction “[a]ny transaction ordinarily incident to a licensed transaction and necessary to give effect thereto is also authorized,” at least as it appears in the 400-level interpretive provision. Differences in the scope of the 400-level ordinarily incident provision across programs are made explicit, through carveouts such as those found in 560.405. By all appearances, OFAC’s view is that the authorizations and limitations found in the typical boilerplate version of this provision are true of all licensed transactions, even when not associated with regulations containing this provision. In other words, that certain transactions ordinarily incident to licensed transactions are inherently authorized by a given license. See 515.421, and comments thereto.

Detailed discussions on the scope and operation of this...

Welcome!

Welcome!

31 CFR § 542.404 - Transactions ordinarily incident to a licensed transaction.

TURBOFAC Commentary (315 words)