David Hardin and Kevin Miller comment on the recent round of sanctions against Iran and the possible issues they could cause to the medical supply industry. The latest wave of Iran sanctions appear to have significant consequences for medical supplies being brought into the country. Several U.S. industry groups have written open letters to the government expressing their concern with section 218 of the Iran Threat Reduction and Syria Human Rights Act (ITRA) and section 803 of the National Defense Authorization (NDAA) and what these new regulations could mean to Iran’s civilian population.
Hardin comments on section 218 of the ITRA, noting "The main change is that it affects foreign subsidiaries of U.S. companies, and prohibits them from engaging in business with Iran. There are exemptions available for sales of pharmaceuticals. Nonetheless, entities attempting to do so are still impacted by practical concerns: even where they are able to get the license, difficulties in receiving payment are such that many are likely not to proceed with the transaction, potentially placing lives at risk."
The exporting process can be difficult for many companies, with the guidance on licensing applications providing unclear information. "This is very confusing," said Miller, "especially for foreign subsidiaries that haven’t done this before. Applicants don’t see the guidance until they start making the application but many are reluctant to start without the guidance."