This past weekend, Customs and Border Protection (CBP) agents at Washington-Dulles International Airport (Dulles) seized an estimated $3,000 in Iranian origin jewelry. The jewelry included one gold and one silver ring, two gold necklaces, a gold bracelet and a pair of earrings. According to CBP, the bringing into the United States of jewelry from Iran was in violation of the Iranian Transactions Regulations (ITR) enforced and administered by the United States Department of the Treasury Office of Foreign Assets Control (OFAC).

Not so fast CBP. Just because someone arrives from Iran with jewelry does not mean that they are in violation of the ITR. While it is true that the ITR does ban the importation into the United States of Iranian-origin goods and/or services, there is also a general license available for the importation of household goods and personal effects. The general license, found at 31 C.F.R. 560.524, states that the importation of Iranian-origin household and personal effects is authorized. However, for the articles in question to qualify for the general license they must have been actually used while traveling abroad and must not be intended for any other person or for sale.

The amount of jewelry seized by CBP does not seem to be that great. Surely, a person could easily have worn those articles of jewelry at sometime during the trip or even on their person during the trip. As such, there was no indication that person from whom the jewelry was confiscated was intending on selling it or providing it to another person. Without further facts to analyze the matter I would have to say that the seizure, or at least the proffered reasoning for the seizure, was in contradiction of the ITR.

Now I did fail to mention that CBP officers also required the passenger to complete a FINCEN form for possessing currency exceeding $10,000 in U.S. dollars or foreign equivalent. The passenger admitted to carrying $9,300, but officers discovered $11,106 in U.S. dollars and 141,177 Iranian Rials, equal to about $14 U.S. dollars.

CBP has made mistakes in regards to seizure of personal effects before. There was a case a few years ago out of Portland Oregon dealing with the same sort of issues. I wrote about that case in my book, The Iranian Transactions Regulations Practice Guide.

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.