Yesterday, the United States Department of the Treasury Office of Foreign Assets Control (OFAC) offered new frequently questions and answers to their website. The questions added to the Frequently Asked Questions section of OFAC’s website were: “I tried to ship a package and it was returned to me “due to OFAC sanctions.” Why?” and “I tried to ship a package and it was “blocked” by the shipping company “due to OFAC sanctions.” Why? And how can I get the package unblocked?”

I often receive inquiries from clients looking for an OFAC attorney to help them unblock a blocked package. The standard operating procedure in that sort of case is to file a license application to have the property unblocked. OFAC stated the same in their answer to the blocked package question, acknowledging that in cases where a package has been blocked by a shipper that:

“Blocking is not required if a general or specific license from OFAC authorizes the shipper to reject or process the package, or if the transaction is otherwise exempt based on the type of contents. To request a license for the package’s release, send a letter with a detailed description of the package’s contents and an explanation of the parties involved in the transaction, along with a copy of the package’s air waybill or Customs Declaration and Dispatch form, to: U.S. Department of the Treasury, Office of Foreign Assets Control, Licensing Division, 1500 Pennsylvania Avenue, NW, Washington, DC 20220.”

Obtaining an OFAC license is a fairly easy process when done correctly. However, there is an art to putting together an OFAC license. Certain information needs to be included in the specific license application in order for it be effective. Here, OFAC has provided some insight into the type of information needed for this particular type of OFAC license. Although this information may be useful to a lay person, it would still behoove a person serious about unblocking the package to hire an attorney who has obtained OFAC licenses before to handle the matter.

Obviously, returned packages do not require a license. However, what needs to be understood about returned packages is that shippers can be held liable for processing shipments to Iran, Cuba, or Sudan if the contents of that shipment are not authorized under an exemption, general license or specific license. As always, the underlying transaction is critical to gauging the liability for violating an OFAC administered sanctions program.

The author of this blog is Erich Ferrari, an attorney specializing in OFAC matters. If you have any questions please contact him at 202-280-6370 or ferrari@ferrari-legal.com.