The other day I wrote about the guidance issued by the United States Department of the Treasury Office of Foreign Assets Control (“OFAC”) in relation to the changes being made to the importation of Iranian-origin goods into the United States in light of the passing of the Comprehensive Iran Sanctions, Accountability, Divestment Act of 2010 (“CISADA”). It seems there was some confusion about my last posting. What I should have made clearer was that the guidance provided by OFAC addressed the “commercial importation” of Iranian-origin goods into the United States.

What I am hearing from some sources is that OFAC may possibly allow for the importation of up to $100 worth of Iranian-origin goods once the new ban goes into effect. However, I would not assume this is true until OFAC officially issues some sort of guidance or amends the regulation. There have been a lot of rumors floating around about how OFAC will implement the CISADA and I can not attest as to the validity of any of these rumors. As such, proceed with caution and pay attention to developments as they occur.

As usual, if you are unsure if a transaction is permitted or not, then your best course of action is to find counsel knowledgeable about the sanctions and experienced in dealing with OFAC and have them draft a request for interpretative guidance. OFAC will respond with a letter that will provide some insight into whether or not the transaction is permissible, and if so, under what circumstances. They will also make you aware of any potential pitfalls you may want to be aware of. With the major changes being made to the Iran sanctions, its of the utmost importance to make sure you do not engage in any transaction which may have been permissible previously, but are no longer allowed.

The author of this blog is Erich Ferrari, an attorney specializing in OFAC litigation. If you have any questions please contact him at 202-280-6370 at 202-351-6161 or ferrari@ferrari-legal.com.