Note 1 to paragraph (a): If a transaction is exempt from the prohibitions of this part if engaged in by a U.S. person, it would not be prohibited for an entity that is owned or controlled by a United States person and established or maintained outside the United States (a "U.S.-owned or -controlled foreign entity") to engage in the transaction to the same extent that it would not be prohibited for the U.S. person to engage in the transaction and provided that the U.S.-owned or -controlled foreign entity satisfies all the requirements of the exemption. See also§ 560.556 of this part for a general license authorizing a U.S.-owned or -controlled foreign entity to engage in a transaction otherwise prohibited by § 560.215 that would be authorized by a general license set forth in or issued pursuant to this part if engaged in by a U.S. person or in the United States, subject to certain exclusions. Finally, if a transaction prohibited by § 560.215 is one for which a U.S. person might apply for a specific license-for example, the exportation of medical devices to Iran-a U.S.-owned or -controlled foreign entity may apply for a specific license to engage in the transaction.
Note 2 to paragraph (b): See§ 560.304 of this part for the definition of the term Government ofIran.
Note 3 to paragraph (c): The exemption in paragraph (c) of this section applies to the Shah Deniz natural gas field in Azerbaijan's sector of the Caspian Sea and related pipeline projects to bring the gas from Azerbaijan to Europe and Turkey.
Note 4 to § 560.215 : A U.S. person is subject to the civil penalties provided for in section 206(b) of the International Emergency Economic Powers Act ("IEEPA") (50 U.S.C. 1705(b) ) if any foreign entity that it owns or controls violates the prohibition set forth in this section. See§ 560.701(a)(4) for civil penalties.
31 C.F.R. §560.215