Kingsfield · Research · International Trade & Sanctions

Does U.S. law prohibit exporting goods or services from the United States to Iran?

Published 2026-06-23 · U.S. federal law

31 CFR 560.204 prohibits the exportation, reexportation, sale, or supply of goods, technology, or services from the United States, directly or indirectly, to Iran or the Government of Iran.

The answer

The direct export prohibition

31 CFR 560.204 prohibits the exportation, reexportation, sale, or supply, directly or indirectly, from the United States or by a U.S. person, of goods, technology, or services to Iran or the Government of Iran. The prohibition reaches indirect supply, including export to a third country with knowledge it is intended for Iran.

Scope of the prohibition

The bar covers goods, technology, and services and applies whether the transaction is direct or routed through an intermediary. A general or specific license from OFAC is required for any otherwise-prohibited export.

The judged input

What the AI drafted

Submitted to the judge

This is an excerpt from a draft OFAC advisory memo — the kind of work product a lawyer generates with a legal-AI drafting tool, then has to stand behind. Kingsfield does not write it; it rules on the citations the model put in it. This draft cites two authorities; one of them is wrong.

AI draft excerpt — OFAC advisory memo

The Company may not ship the proposed equipment to its prospective customer in Tehran. Under 31 CFR 560.204, the exportation, reexportation, sale, or supply of goods, technology, or services from the United States to Iran is prohibited, directly or indirectly, absent OFAC authorization. We advise that this prohibition reaches indirect supply through a third country where the goods are intended for Iran. This direct U.S.-origin export bar is established by 31 CFR 560.205.

The judge ruled on every citation as the draft used it — it accepted 31 CFR 560.204 and rejected 31 CFR 560.205. Here is why.

The verdict

How Kingsfield ruled

Ruled 2026-06-23

Each citation in the draft above was submitted to the Kingsfield judge and ruled against the primary-law corpus — Accept, Reject, or Inconclusive, per citation. These are live verdicts, not editorial. Each card shows the claim the draft made and the verbatim authority the verdict was rendered against.

Accept31 CFR 560.204

The draft claimed: The exportation, reexportation, sale, or supply, directly or indirectly, from the United States of goods, technology, or services to Iran or the Government of Iran is prohibited.

“Except as otherwise authorized pursuant to this part, and notwithstanding any contract entered into or any license or permit granted prior to May 7, 1995, the exportation, reexportation, sale, or supply, directly or indirectly, from the United States, or by a United States person, wherever located, of any goods, technology, or services to Iran or the…”

Cite found; proposition supported by the cited text.

Reject31 CFR 560.205

The draft claimed: Section 560.205 is the provision that prohibits the direct exportation or supply of goods, technology, or services from the United States to Iran.

Cite found, but the cited text does not support the claim. 31 CFR 560.205 prohibits the reexportation by a third party of certain U.S.-origin goods, technology, or services from a third country to Iran; the direct U.S.-origin export prohibition is at 31 CFR 560.204. Regenerate with the correct authority.

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Kingsfield rules on every citation, quote, and proposition your AI produces, against the primary law we cover. Accept, Reject, or Inconclusive, per citation, with a signed Audit Capsule.

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This page is legal information, not legal advice, and does not create an attorney-client relationship. The draft shown is an illustration of a typical AI answer; verdicts reflect the cited authority in the Kingsfield corpus as of the ruling date shown above.