(a) The importation under a pre-August 15, 1986, contract of steel marketed by a parastatal organization is prohibited after December 31, 1986, pursuant to the iron and steel ban in 545.206. The longer parastatal importation period in 545.208(a)(2) is not available to permit importations after December 31, 1986.

(b) Similarly, the ban in 545.205 on agricultural imports is applicable to, and prohibits, all agricultural import transactions after October 2, 1986, regardless of the involvement of a parastatal organization.

(51 FR 41909, Nov. 19, 1986)

31 CFR 545.414 U.S. Customs Service rules of origin.

Determinations of country of origin for purposes of this part will be made in accordance with normal Customs rules of origin.

(51 FR 41909, Nov. 19, 1986)

31 CFR 545.415 Trading in South African securities; American Depositary Receipts; recapitalizations.

(a) For purposes of the prohibition on new investment in 545.210, the ownership, control, transfer or acquisition of (1) a debt or equity security issued by the Government of South Africa or a South African entity, or (2) an American Depositary Receipt (ADR) evidencing an interest in such a security, is authorized provided that no interest represented by the security or ADR was issued on or after October 2, 1986.

(b) Shares issued by a South African entity on or after October 2, 1986 in a stock split or similar recapitalization transaction, in a merger or other reorganization, or as a stock dividend, with respect to its shares issued on or prior to that date, will be deemed issued on the date of issuance of the underlying shares for the purposes of 545.210, provided that, except as permitted in 545.319(c)(1), such split, recapitalization, reorganization, or dividend does not result in a payment, contribution of funds or assets, or credit to, or for the benefit of, the South African issuer from, or on behalf of, the security holder. This treatment is not available for shares acquired on or after October 2, 1986 through the exercise of warrants or preemptive rights. Rights or warrants received on or after October 2, 1986 with respect to shares issued prior to that date may, however, be sold by the security holder, or on an ADR holder's behalf by the depositary.

(51 FR 46855, Dec. 29, 1986)

31 CFR 545.416 Trading in commodities.

Trading in commodities futures or options thereon with respect to South African commodities will be treated as the purchase or sale of the underlying goods. However, no such commodities subject to import prohibitions may be imported into the United States on or after the effective date of a relevant import prohibition.

(51 FR 46855, Dec. 29, 1986)

31 CFR 545.417 Expenses to comply with Code of Conduct.

Expenses incurred by U.S. nationals to comply with the Code of Conduct will not be treated as prohibited new investment in South Africa.

(51 FR 46855, Dec. 29, 1986)

31 CFR 545.418 Sales of goods, services, and technology.

Purchases and sales of goods, services, and technology in arms' length transactions on normal commercial terms will generally not be treated as new investment in South Africa for purposes of the prohibition in 545.210.

(51 FR 46855, Dec. 29, 1986)

31 CFR 545.419 Real estate acquisition.

The purchase of real estate in South Africa for use as a residence by the purchasing individual U.S. national will not be treated as new investment in South Africa for purposes of 545.210, provided that no commercial or rental use is made of such real estate.

(51 FR 46855, Dec. 29, 1986)

31 CFR 545.420 Bank accounts in South Africa.

(a) The opening and holding of personal bank accounts in South Africa by an individual resident in South Africa, or of corporate or similar accounts by an entity that is a U.S. national doing business through a permanent establishment in South Africa, will not be treated as a ''loan'' or ''new investment'' for purposes of 545.202 or 545.210.

(b) The opening and holding of non-interest-bearing demand deposit or call accounts in South Africa by a U.S. national located outside South Africa will not be treated as a ''loan'' or ''new investment'' for purposes of 545.202 or 545.210, where such accounts are used exclusively to pay for and clear transactions with South African entities.

(51 FR 46856, Dec. 29, 1986)

31 CFR 545.421 Charitable contributions.

Contributions to charitable organizations engaged in social welfare, public health, religious, educational, and emergency relief activities in South Africa will not be treated as ''new investments'' for purposes of 545.210.

(51 FR 46856, Dec. 29, 1986)

31 CFR 545.422 Foreign exchange transactions.

A foreign exchange transaction executed at current market prices, for immediate or future delivery but without an extension of credit, will not be deemed a ''loan'' as defined in 545.304.

(51 FR 46856, Dec. 29, 1986)

31 CFR 545.423 Confirmation of short-term trade credits.

The confirmation of short-term trade financing instruments, such as commercial letters of credit, is authorized, provided that the instrument being confirmed is not within the definition of ''loan'' in 545.304.

(51 FR 46856, Dec. 29, 1986)

31 CFR 545.424 Firm owned by black South Africans.

For purposes of 545.210, the term ''firm owned by black South Africans'' means an entity owned by South African victims of apartheid.

(51 FR 46856, Dec. 29, 1986)

31 CFR 545.425 Substantial transformation of uranium ore and oxide.

Articles such as uranium hexafluoride, which are produced from uranium ore or uranium oxide and which the U.S. Customs Service determines to have been substantially transformed outside the United States, are not subject to the import prohibition of 545.211.

(52 FR 7274, Mar. 10, 1987)

31 CFR 545.426 Repair of U.S.-origin goods exported by South African parastatals.

The temporary return from South Africa to the United States of U.S.-origin goods for repair or servicing and re-export is not considered an exportation by a parastatal organization of South Africa pursuant to 545.208 of this part.

(52 FR 7274, Mar. 10, 1987)

31 CFR 545.426 Subpart E -- Licenses, Authorizations and Statements of Licensing Policy

31 CFR 545.501 Effect of subsequent license or authorization.

No license or other authorization contained in this chapter or otherwise issued by or under the authority of the Secretary of the Treasury shall be deemed to authorize or validate any transaction effected prior to the issuance thereof, unless such license or other authorization specifically so provides.

(51 FR 41909, Nov. 19, 1986)

31 CFR 545.502 Exclusion from licenses and authorizations.

The Secretary of the Treasury reserves the right to exclude any person or property from the operation of any license or to restrict the applicability thereof to any person or property. Such action shall be binding upon all persons receiving actual or constructive notice thereof.

31 CFR 545.503 Loans to benefit persons disadvantaged by the apartheid system.

(a) Specific licenses may be issued to financial institutions in the United States that are not nationals of the United States authorizing them to make loans to prohibited borrowers where it is determined that the loans will improve the welfare or expand the economic opportunities of persons in South Africa disadvantaged by the apartheid system, provided that no such loan will be authorized to any apartheid enforcing entity.

(b) Specific licenses may be issued to nationals of the United States or financial institutions in the United States where it is determined that the loans will finance any education, housing, or humanitarian benefit which (1) is available to all persons on a nondiscriminatory basis, or (2) is available in a geographic area accessible to all population groups without any legal or administrative restriction.

(51 FR 41909, Nov. 19, 1986)

31 CFR 545.599 Lifting of sanctions.

(a) The prohibitions contained in 545.201 through 545.211 of this part do not apply to any transaction occurring after 12:01 p.m. e.d.t., July 10, 1991.

(b) Nothing in this section affects any action taken or proceeding pending and not finally concluded or determined on, or any action or proceeding based on any act committed prior to, or any rights or duties that matured or penalties that were incurred prior to 12:01 p.m. e.d.t., July 10, 1991.

(56 FR 32056, July 12, 1991)

31 CFR 545.599 Subpart F -- Reports

31 CFR 545.601 Required records.

Every person engaging in any act or transaction subject to this part shall keep a full, complete, and accurate record relative to any such act or transaction either before, during, or after the completion thereof, including any transaction effected pursuant to license or otherwise, and such records shall be available for examination for two years after the date of such transaction.

(51 FR 41910, Nov. 19, 1986)

31 CFR 545.602 Reports to be furnished on demand.

Every person is required to furnish under oath, in the form of reports or otherwise, at any time as may be required, complete information relative to any act or transaction subject to this part, regardless of whether such transaction is effected pursuant to license or otherwise. Such reports may be required to include the production of any books of account, contracts, letters, and other papers connected with any transaction in the custody or control of the persons required to make such reports. Reports with respect to transactions may be required before, during, or after such transactions are completed. The Secretary of the Treasury may, through any person or agency, conduct investigations, hold hearings, administer oaths, examine witnesses, receive evidence, take depositions, and require by subpoena the attendance and testimony of witnesses and the production of all books, papers, and documents relating to any matter under investigation.

(51 FR 41910, Nov. 19, 1986)

31 CFR 545.603 Registration of new investment in firms owned by black South Africans.

Every person making a new investment in a firm owned by black South Africans pursuant to the exception to the prohibition on new investment in 545.210(b) shall, prior to making such new investment, file with the Office of Foreign Assets Control a report with respect to such investment, including:

(a) The name and address of the U.S. national making the investment;

(b) The name of the black-owned firms,

(c) Full information on the black-owned firm's ownership, sufficient to demonstrate its eligibility under 545.210(b); and

(d) The amount and nature of the U.S. national's new investment.

(51 FR 46856, Dec. 29, 1986)

31 CFR 545.604 Registration of contributions necessary to enable a controlled South African entity to operate in an economically sound manner.

Every person making a contribution necessary to enable a controlled South African entity to operate in an economically sound manner, pursuant to the exception to the prohibition on new investment in 545.317(c)(2), shall, prior to making such contribution, file with the Office of Foreign Assets Control a report with respect to such contribution, including:

(a) The name and address of the U.S. national making the contribution;

(b) The name and address of the controlled South African entity;

(c) Full information on the circumstances requiring the contribution, sufficient to demonstrate its eligibility under 545.319(c)(2); and

(d) The amount and nature of the U.S. national's contribution.

(51 FR 46856, Dec. 29, 1986)

31 CFR 545.604 Subpart G -- Penalties

31 CFR 545.701 Penalties.

(a) Any person that violates any regulation, license, or order issued under this part shall be subject to a civil penalty of $50,000.

(b) Any person, other than an individual, that willfully violates any regulation, license, or order issued under this part shall be fined not more than $1,000,000.

(c) Any individual who willfully violates any regulation, license, or order issued under this part shall be fined not more than $50,000, or imprisoned not more than ten years, or both; and

(d) Whenever a person commits a violation as to which a penalty under paragraph (a), (b) or (c) of this section applies, the following shall also apply: (1) Any officer, director, or employee of such person, or any natural person in control of such person, who knowingly and willfully ordered, authorized, acquiesced in, or carried out the act or practice constituting the violation; and (2) any agent of such person who knowingly and willfully carried out such act or practice, shall be fined not more than $10,000, or imprisoned not more than five years, or both. However, this paragraph (d) shall not apply in the case of a violation by an individual of section 301(a) of the Act, 545.201 of this part, or of any other regulation issued to carry out section 301(a) of the Act.

(e) A fine imposed under paragraph (b) of this section on an individual for an act or practice constituting a violation may not be paid, directly or indirectly, by the person committing the violation itself.

(f) Any individual who violates 545.201 of this part relating to the prohibition on the importation of Krugerrands or other South African gold coins shall, instead of the penalties set forth in paragraph (b) of this section, be fined not more than five times the value of the Krugerrands or gold coins involved.

(The Act, 603 (b) and (c).)

(g) Whoever, in any matter within the jurisdiction of any department or agency of the United States knowingly and willfully falsifies, conceals or covers up by any trick, scheme, or device a material fact, or makes any false, fictitious or fraudulent statements or representations, or makes or uses any false writing or document knowing the same to contain any false, fictitious or fraudulent statement or entry, shall be fined not more than $10,000, or such greater amount as set forth in 18 U.S.C. 3623, or imprisoned not more than five years, or both.

(18 U.S.C. 1001, 3623.)

(h) Violations of this part may also be subject to relevant provisions of the Customs laws and other applicable laws.

(51 FR 41910, Nov. 19, 1986)

31 CFR 545.702 Prepenalty notice.

(a) When required. If the Director of the Office of Foreign Assets Control (hereinafter ''Director'') has reasonable cause to believe that there has occurred a violation of any provision of this part or a violation of the provisions of any license, ruling, regulation, order, direction or instruction issued by or pursuant to the direction or authorization of the Secretary of the Treasury pursuant to this part or otherwise under the Comprehensive Anti-Apartheid Act of l986, and the Director determines that further proceedings are warranted, he shall issue to the person concerned a notice of his intent to impose a monetary penalty. The prepenalty notice shall be issued whether or not another agency has taken any action with respect to this matter.

(b) Contents -- (1) Facts of violation.

The prepenalty notice shall: (i) Describe the violation.

(ii) Specify the laws and regulations allegedly violated.

(iii) State the amount of the proposed monetary penalty.

(2) Right to make presentations. The prepenalty notice also shall inform the person of his right to make a written presentation within thirty (30) days of mailing of the notice as to why a monetary penalty should not be imposed, or, if imposed, why it should be in a lesser amount than proposed.

(53 FR 7357, Mar. 8, 1988)

31 CFR 545.703 Presentation responding to prepenalty notice.

(a) Time within which to respond. The named person shall have 30 days from the date of mailing of the prepenalty notice to make a written presentation to the Director.

(b) Form and contents of written presentation. The written presentation need not be in any particular form, but shall contain information sufficient to indicate that it is in response to the prepenalty notice. It should contain responses to the allegations in the prepenalty notice and set forth the reasons why the person believes the penalty should not be imposed or, if imposed, why it should be in a lesser amount than proposed.

(53 FR 7357, Mar. 8, 1988)

31 CFR 545.704 Penalty notice.

(a) No violation. If, after considering any presentations made in response to the prepenalty notice, the Director determines that there was no violation by the person named in the prepenalty notice, he promptly shall notify the person in writing of that determination and that no monetary penalty will be imposed.

(b) Violation. If, after considering any presentations made in response to the prepenalty notice, the Director determines that there was a violation by the person named in the prepenalty notice, he promptly shall issue a written notice of the imposition of the monetary penalty to that person.

(53 FR 7357, Mar. 8, 1988)

31 CFR 545.705 Referral to United States Department of Justice.

In the event that the person named does not pay the penalty imposed pursuant to this subpart or make payment arrangements acceptable to the Director within thirty days of the mailing of the written notice of the imposition of the penalty, the matter shall be referred to the United States Department of Justice for appropriate action to recover the penalty in a civil suit in a Federal district court.

(53 FR 7357, Mar. 8, 1988)

31 CFR 545.705 Subpart H -- Procedures

31 CFR 545.801 Licensing.

(a) General licenses. General licenses may be issued authorizing under appropriate terms and conditions certain types of transactions which are subject to the prohibitions contained in subpart B of this part. Any and all such licenses will be set forth in subpart E of this part. It is the policy of the Office of Foreign Assets Control not to grant applications for specific licenses authorizing transactions to which the provisions of an outstanding general license are applicable. Persons availing themselves of certain general licenses may be required to file reports and statements in accordance with the instructions specified in those licenses.

(b) Specific licenses. Transactions prohibited under subpart B may be effected only under specific license.

(1) The specific licensing activities of the Office of Foreign Assets Control are performed by its Washington Office and by the Foreign Assets Control Division of the Federal Reserve Bank of New York.

(2) Applications for specific licenses. Applications for specific licenses to engage in any transaction prohibited under this part are to be filed in duplicate with the Federal Reserve Bank of New York, Foreign Assets Control Division, 33 Liberty Street, New York, NY 10045. Any person having an interest in a transaction or proposed transaction may file an application for a license authorizing such transaction, and there is no requirement that any other person having an interest in such transaction shall or should join in making or filing such application.

(3) Information to be supplied. The applicant must supply all information specified by the respective forms and instructions. Such documents as may be relevant shall be attached to each application except that documents previously filed with the Office of Foreign Assets Control may, where appropriate, be incorporated by reference. Applicants may be required to furnish such further information as is deemed necessary to a proper determination by the Office of Foreign Assets Control. Failure to furnish necessary information will not be excused because of any provision of South African law. If an applicant or other party in interest desires to present additional information or discuss or argue the application, he may do so at any time before or after decision. Arrangements for oral presentation should be made with the Office of Foreign Assets Control.

(4) Effect of denial. The denial of a license does not preclude the reopening of an application or the filing of a further application. The applicant or any other party in interest may at any time request explanation of the reasons for a denial by correspondence or personal interview.

(5) Reports under specific licenses. As a condition of the issuance of any license, the licensee may be required to file reports with respect to the transaction covered by the license, in such form and at such times and places as may be prescribed in the license or otherwise.

(6) Issuance of license. Licenses will be issued by the Office of Foreign Assets Control acting on behalf of the Secretary of the Treasury or by the Federal Reserve Bank of New York, acting in accordance with such regulations, rulings, and instructions as the Secretary of the Treasury or the Office of Foreign Assets Control may from time to time prescribe, or licenses may be issued by the Secretary of the Treasury acting directly or through a designated person, agency, or instrumentality.

(50 FR 41682, Oct. 15, 1985, as amended at 51 FR 41910, Nov. 19, 1986)

31 CFR 545.802 Decisions.

The Office of Foreign Assets Control or the Federal Reserve Bank of New York will advise each applicant of the decision respecting filed applications. The decision of the Office of Foreign Assets Control with respect to an application shall constitute a final agency action.

31 CFR 545.803 Amendment, modification, or revocation.

The provisions of this part and any rulings, licenses, authorizations, instructions, orders or forms issued hereunder may be amended, modified, or revoked at any time.

31 CFR 545.804 Rulemaking.

(a) All rules and other public documents are issued by the Secretary of the Treasury upon recommendation of the Director of the Office of Foreign Assets Control. Except to the extent that there is involved any military, naval, or foreign affairs function of the United States or any matter relating to the agency management or personnel or to public property, loans, grants, benefits, or contracts, and except when interpretive rules, general statements of policy, or rules of agency organization, practice, or procedure are involved, or when notice and public procedure are impracticable, unnecessary, or contrary to the public interest, interested persons will be afforded an opportunity to participate in rulemaking through the submission of written data, views, or arguments, with oral presentation in the discretion of the Director. In general, rulemaking by the Office of Foreign Assets Control involves foreign affairs functions of the United States. Wherever possible, however, it is the practice to hold informal consultations with interested groups or persons before the issuance of any rule or other public document.

(b) Any interested person may petition the Director of the Office of Foreign Assets Control in writing for the issuance, amendment or revocation of any rule.

31 CFR 545.805 Delegation by the Secretary of the Treasury.

Any action that the Secretary of the Treasury is authorized to take with respect to the subject matter of this part may be taken by the Director of the Office of Foreign Assets Control, or by any other person to whom the Secretary of the Treasury delegated authority so to act.

(51 FR 41910, Nov. 19, 1986)

31 CFR 545.806 Rules governing availability of information.

(a) The records of the Office of Foreign Assets Control which are required by 5 U.S.C. 552 to be made available to the public shall be made available in accordance with the definitions, procedures, payment of fees, and other provisions of the regulations on the disclosure of records of the Office of the Secretary and of other bureaus and offices of the Department issued under 5 U.S.C. 552 and published as part 1 of this title 31 of the Code of Federal Regulations.

(b) Any form issued for use in connection with this part may be obtained in person from or by writing to the Office of Foreign Assets Control, Treasury Department, Washington, DC 20220, or the Foreign Assets Control Division, Federal Reserve Bank of New York, 33 Liberty Street, New York, NY 10045.

31 CFR 545.807 Certification concerning parastatal organizations.

(a) If the importer asserts that the imported articles were not grown, produced, manufactured, marketed, or otherwise exported by a parastatal organization, he shall file the following declaration with the U.S. Customs Service upon making an entry of goods from South Africa:

These goods were obtained from ------ , which is not a parastatal entity of South Africa, and these goods were not grown, produced, manufactured, marketed, or otherwise exported by a parastatal organization.

(b) If parastatal status is declared upon making an entry of goods from South Africa, or from a third country in the case of goods marketed or otherwise exported by a parastatal organization, the following declaration shall be filed:

These goods were grown, produced, manufactured, marketed or otherwise exported by ------ , which is a parastatal organization of South Africa.

When entering parastatal goods as described above, a copy of the import contract or other evidence of the date of the import contract pertaining to the goods must be submitted evidencing that the contract was entered into prior to August 15, 1986. Importation shall be permitted only for parastatal goods not otherwise prohibited pursuant to subpart B of this part, and only if the goods are imported prior to April 2, 1987.

(51 FR 41910, Nov. 19, 1986)

31 CFR 545.808 Certification concerning hides, skins, leather, and furskins of animals from the wild.

If the importer asserts that the imported articles are hides, skins, leather, or furskins, classifiable under Schedule 1, part 5, ''Hide, Skins, and Leather; Furskins'' (including TSUS numbers 120.11 through 120.50, 121.10 through 121.65, 123.00 through 123.50, and 124.10 through 124.80), of animals that are taken from the wild in South Africa, and that are not cultivated, ranched, or otherwise the product of animal husbandry, the following signed certificate shall be filed with the U.S. Customs Service upon making an entry of such goods from South Africa:

These XXXX (hides, skins, leather, or furskins), classifiable under TSUS number(s) XXXX (from Schedule 1, Part 5, ''Hide, Skins, and Leather; Furskins'' (including TSUS numbers 120.11 through 120.50, 121.10 through 121.65, 123.00 through 123.50, and 124.10 through 124.80)), are from XXXX (type of animal) that were taken from the wild in South Africa, and that were not cultivated, ranched, or otherwise the product of animal husbandry. The requirements of Title 50 of the Code of Federal Regulations (Wildlife and Fisheries), including those relating to endangered species, have been fully complied with in removing these articles from South Africa, and all applicable import certificates required pursuant to title 50 are presented with this entry.

(52 FR 7855, Mar. 13, 1987)

31 CFR 545.808 Subpart I -- Miscellaneous

31 CFR 545.901 Paperwork Reduction Act notice.

The information collection requirements in 545.503, 545.504, 545.601, and 545.602 have been approved by the Office of Management and Budget (OMB) and have been assigned control number 1505-0091. The information collection requirements of 545.807 have been approved by OMB and assigned control number 1505-0097. The information collection requirements of 545.603 and 545.604 have been approved by OMB and assigned control number 1505-0098.

(52 FR 7274, Mar. 10, 1987)

31 CFR 545.901 PART 550 -- LIBYAN SANCTIONS REGULATIONS

31 CFR 545.901 Pt. 550

31 CFR 545.901 Subpart A -- Relation of this Part to Other Laws and Regulations

Sec.

550.101 Relation of this part to other laws and regulations.

31 CFR 545.901 Subpart B -- Prohibitions

550.201 Prohibited imports of goods or services from Libya.

550.202 Prohibited exports of goods, technology or services to Libya.

550.203 Prohibited transportation-related transactions.

550.204 Prohibited purchases of goods from Libya.

550.205 Prohibited engagement in contracts.

550.206 Prohibited grants or extensions of credits or loans.

550.207 Prohibited transactions relating to travel to Libya or to activities within Libya.

550.208 Evasions.

550.209 Prohibited transactions involving property in which the Government of Libya has an interest; transactions with respect to securities.

550.210 Effect of transfers violating the provisions of this part.

31 CFR 545.901 Subpart C -- Definitions

550.301 Effective date.

550.302 Libya; Libyan.

550.303 Libyan origin.

550.304 Government of Libya.

550.305 Libyan person.

550.306 Person.

550.307 United States.

550.308 United States person.

550.309 License.

550.310 General license.

550.311 Specific license.

550.312 Credits or loans.

550.313 Transfer.

550.314 Property; property interests.

550.315 Interest.

550.316 Blocked account; blocked property.

550.317 Domestic bank.

550.318 Entity.

550.319 Entity of the Government of Libya; Libyan entity.

550.320 Banking institution.

31 CFR 545.901 Subpart D -- Interpretations

550.401 Reference to amended sections.

550.402 Effect of amendment of sections of this part or of other orders, etc.

550.403 Extensions of credits or loans to Libya.

550.404 Import and export of goods in transit before the effective date.

550.405 Payments in connection with certain authorized transactions.

550.406 Offshore transactions.

550.407 Transshipment through the United States prohibited.

550.408 Imports from third countries; transshipments.

550.409 Exports to third countries; transshipment.

550.410 Release from bonded warehouse or foreign trade zone.

550.411 Publications.

550.412 Termination and acquisition of an interest of the Government of Libya.

550.413 Payments to Libya prohibited.

550.414 Exports of Libyan-titled goods.

550.415 Advance payments.

550.416 Imports of Libyan goods and purchases of goods from Libya.

550.417 Letters of credit.

550.418 Payments from blocked accounts for U.S. exporters and other obligations prohibited.

550.419 Acquisition of instruments, including bankers' acceptances.

550.420 Indirect payments to the Government of Libya.

550.421 Setoffs prohibited.

31 CFR 545.901 Subpart E -- Licenses, Authorizations, and Statements of Licensing Policy

550.501 Effect of license or authorization.

550.502 Exclusion from licenses and authorizations.

550.503 Imports pursuant to Executive Order 12538.

550.504 Certain exports authorized.

550.505 Certain imports for diplomatic or official personnel authorized.

550.506 Certain services relating to participation in various events authorized.

550.507 Import of publications authorized.

550.508 Import of certain gifts authorized.

550.509 Import of accompanied baggage authorized.

550.510 Telecommunications and mail transactions authorized.

550.511 Payments to blocked accounts in domestic banks.

550.512 Payment of certain checks and drafts and documentary letters of credit.

550.513 Completion of certain securities transactions.

550.515 Payment by the Government of Libya of obligations to persons within the United States.

550.516 Unblocking of foreign currency deposits held by U.S. persons overseas.

550.560 Transactions related to travel to, and residence within, Libya by immediate family members of Libyan nationals.

550.568 Certain standby letters of credit and performance bonds.

31 CFR 545.901 Subpart F -- Reports

550.601 Required records.

550.602 Reports to be furnished on demand.

550.605 Reports of U.S. persons with foreign affiliates that engage in Libyan transactions.

550.630 Reports on Form TFR-630 (TDF 90-22.32).

550.635 Reports on Form TFR-635 (TDF 90-22.33).

31 CFR 545.901 Subpart G -- Penalties

550.701 Penalties.

550.702 Detention of shipments.

550.703 Prepenalty notice.

550.704 Presentation responding to prepenalty notice.

550.705 Penalty notice.

550.706 Referral to United States Department of Justice.

31 CFR 545.901 Subpart H -- Procedures

550.801 Licensing.

550.802 Decisions.

550.803 Amendment, modification, or revocation.

550.804 Rulemaking.

550.805 Delegation by the Secretary of the Treasury.

550.806 Rules governing availability of information.

550.807 Customs procedures: Merchandise specified in 550.201.

31 CFR 545.901 Subpart I -- Miscellaneous

550.901 Paperwork Reduction Act notice.

Appendix A to Part 550 -- Organizations Determined to be Within the Term ''Government of Libya'' (Specially Designated Nationals of Libya)

Authority: 50 U.S.C. 1701 et seq. ; 22 U.S.C. 2349aa-8 & -9; 49 U.S.C. 1514; E.O. 12543, 51 FR 875 (Jan. 9, 1986); E.O. 12544, 51 FR 1235 (Jan. 10, 1986).

Source: 51 FR 1354, Jan. 10, 1986, unless otherwise noted.

31 CFR 545.901 Subpart A -- Relation of this Part to Other Laws and Regulations

31 CFR 550.101 Relation of this part to other laws and regulations.

(a) This part is independent of parts 500, 505, 515, 520, 535, 540, and 545 of this chapter. Those parts do not relate to Libya. No license or authorization contained in or issued pursuant to those other parts authorizes any transaction prohibited by this part. In addition, licenses or authorizations contained in or issued pursuant to any other provision of law or regulations do not authorize any transaction prohibited by this part.

(b) No license or authorization contained in or issued pursuant to this part relieves the involved parties from complying with any other applicable laws or regulations. In particular, no license or authorization contained in or issued pursuant to this part authorizes the importation of petroleum products which would be banned by Presidential Proclamation 5141 of December 22, 1983 or Executive Order 12538 of November 15, 1985.

31 CFR 550.101 Subpart B -- Prohibitions

31 CFR 550.201 Prohibited imports of goods or services from Libya.

Except as authorized, no goods or services of Libyan origin, other than publications and materials imported for news publication or news broadcast dissemination, may be imported into the United States.

31 CFR 550.202 Prohibited exports of goods, technology or services to Libya.

Except as authorized, no goods, technology (including technical data or other information) or services may be exported to Libya from the United States, except publications and donated articles intended to relieve human suffering, such as food, clothing, medicine and medical supplies intended strictly for medical purposes.

31 CFR 550.203 Prohibited transportation-related transactions.

Except as authorized, the following are prohibited:

(a) Any transaction by a United States person relating to transportation to or from Libya;

(b) The provision of transportation to or from the United States by any Libyan person or any vessel or aircraft of Libyan registration; or

(c) The sale in the United States by any person holding authority under the Federal Aviation Act of any transportation by air which includes any stop in Libya.

31 CFR 550.204 Prohibited purchases of goods from Libya.

Except as authorized, no U.S. person may purchase goods for export from Libya to any other country.

31 CFR 550.205 Prohibited engagement in contracts.

Except as authorized, no U.S. person may perform any contract in support of an industrial or other commercial or governmental project in Libya.

31 CFR 550.206 Prohibited grants or extensions of credits or loans.

Except as authorized, no U.S. person may grant or extend credits or loans to the Government of Libya.

31 CFR 550.207 Prohibited transactions relating to travel to Libya or to activities within Libya.

Except as authorized, no U.S. person may engage in any transaction relating to travel by any U.S. citizen or permanent resident alien to Libya, or to activities by any U.S. citizen or permanent resident alien within Libya, after the effective date, other than transactions:

(a) Necessary to effect the departure of a U.S. citizen or permanent resident alien from Libya;

(b) Relating to travel to, from, or within Libya prior to February 1, 1986 to perform acts prohibited by 550.201, 550.202, 550.203, 550.204, or 550.205 after that date; or

(c) Relating to journalistic activity by persons regularly employed in such capacity by a newsgathering organization.

This section prohibits the unauthorized payment by a U.S. person of his own travel or living expenses to or within Libya.

31 CFR 550.208 Evasions.

Any transaction for the purpose of, or which has the effect of, evading or avoiding any of the prohibitions set forth in this subpart is hereby prohibited.

31 CFR 550.209 Prohibited transactions involving property in which the Government of Libya has an interest; transactions with respect to securities.

(a) Except as authorized by regulations, rulings, instructions, licenses, or otherwise, no property or interests in property of the Government of Libya that are in the United States that hereafter come within the United States or that are or hearafter come within the possession or control of U.S. persons, including their overseas branches, may be transferred, paid, exported, withdrawn or otherwise dealt in.

(b) Unless authorized by a license expressly referring to this section, the acquisition, transfer (including the transfer on the books of any issuer or agent thereof), disposition, transportation, importation, exportation, or withdrawal of, or the endorsement or guaranty of signatures on or otherwise dealing in any security (or evidence thereof) registered or inscribed in the name of the Government of Libya is prohibited irrespective of the fact that at any time (either prior to, on, or subsequent to 4:10 p.m. e.s.t., January 8, 1986) the registered or inscribed owner thereof may have, or appears to have, assigned, transferred or otherwise disposed of any such security.

(51 FR 2462, Jan. 16, 1986)

31 CFR 550.210 Effect of transfers violating the provisions of this part.

(a) Any transfer after 4:10 p.m. e.s.t., January 8, 1986, which is in violation of any provision of this part or of any regulation, ruling, instruction, license, or other direction or authorization thereunder and involves any property in which the Government of Libya has or has had an interest since such date is null and void and shall not be the basis for the assertion or recognition of any interest in or right, remedy, power or privilege with respect to such property.

(b) No transfer before 4:10 p.m. e.s.t., January 8, 1986, shall be the basis for the assertion or recognition of any right, remedy, power, or privilege with respect to, or interest in, any property in which the Government of Libya has or has had an interest since such date, unless the person with whom such property is held or maintained had written notice of the transfer or by any written evidence had recognized such transfer prior to such date.

(c) Unless otherwise provided, an appropriate license or other authorization issued by or pursuant to the direction or authorization of the Secretary of the Treasury before, during or after a transfer shall validate such transfer or render it enforceable to the same extent as it would be valid or enforceable but for the provisions of the International Emergency Economic Powers Act and this part and any ruling, order, regulation, direction or instruction issued hereunder.

(d) Transfers of property which otherwise would be null and void or unenforceable, by virtue of the provisions of this section, shall not be deemed to be null and void or unenforceable pursuant to such provisions, as to any person with whom such property was held or maintained (and as to such person only) in cases in which such person is able to establish each of the following:

(1) Such transfer did not represent a willfull violation of the provisions of this part by the person with whom such property was held or maintained:

(2) The person with whom such property was held or maintained did not have reasonable cause to know or suspect, in view of all the facts and circumstances known or available to such person, that such transfer required a license or authorization by or pursuant to this part and was not so licensed or authorized, or if a license or authorization did purport to cover the transfer, that such license or authorization had been obtained by misrepresentation or the withholding of material facts or was otherwise fraudulently obtained; and

(3) Promptly upon discovery that: (i) Such transfer was in violation of the provisions of this part or any regulation, ruling, instruction, license or other direction or authorization thereunder, or (ii) such transfer was not licensed or authorized by the Secretary of the Treasury, or (iii) if a license did purport to cover the transfer, such license had been obtained by misrepresentation or the withholding of material facts or was otherwise fraudulently obtained; the person with whom such property was held or maintained filed with the Treasury Department, Washington, DC, a report in triplicate setting forth in full the circumstances relating to such transfer. The filing of a report in accordance with the provisions of this paragraph shall not be deemed to be compliance or evidence of compliance with paragraphs (d)(1) and (2) of this section.

(e) Unless licensed or authorized pursuant to this part, any attachment, judgment, decree, lien, execution, garnishment or other judicial process is null and void with respect to any property in which on or since 4:10 p.m. e.s.t., January 8, 1986, there existed an interest of the Government of Libya.

(51 FR 2462, Jan. 16, 1986)

31 CFR 550.210 Subpart C -- Definitions

31 CFR 550.301 Effective date.

The effective date means:

(a) 12:01 a.m. Eastern Standard Time (e.s.t.), February 1, 1986, with respect to the transactions prohibited by 550.201, 550.202, 550.203, 550.204, and 550.205;

(b) 8:06 p.m. Eastern Standard Time (e.s.t.), January 7, 1986, with respect to transactions prohibited by 550.206 and 550.207; and

(c) 4:10 p.m. Eastern Standard Time (e.s.t.), January 8, 1986, with respect to transactions prohibited by 550.209.

(51 FR 2463, Jan. 16, 1986)

31 CFR 550.302 Libya; Libyan.

The term Libya means the country of Libya and any Libyan territory, dependency, colony, protectorate, mandate, dominion, possession, or place subject to the jurisdiction thereof. The term Libyan means pertaining to Libya as defined in this section.

31 CFR 550.303 Libyan origin.

The term goods or services of Libyan origin includes:

(a) Goods produced, manufactured, grown, or processed within Libya;

(b) Goods which have entered into Libyan commerce;

(c) Services performed in Libya or by a Libyan national who is acting as an agent, employee, or contractor of the Government of Libya, or of a business entity located in Libya. Services of Libyan origin are not imported into the United States when such services are provided in the United States by a Libyan national who, during indefinite residency in the United States, works as, for example, a teacher, athlete, restaurant or domestic worker, or a person employed in any other regular occupation.

31 CFR 550.304 Government of Libya.

(a) The Government of Libya includes:

(1) The state and the Government of Libya, as well as any political subdivision, agency, or instrumentality thereof, including the Central Bank of Libya;

(2) Any partnership, association, corporation, or other organization substantially owned or controlled by the foregoing;

(3) Any person to the extent that such person is, or has been, or to the extent that there is reasonable cause to believe that such person is, or has been, since the effective date, acting or purporting to act directly or indirectly on behalf of any of the foregoing;

(4) Any other person or organization determined by the Secretary of the Treasury to be included within paragraph (a) of this section.

(b) A person specified in paragraph (a)(2) of this section shall not be deemed to fall within the definition of Government of Libya solely by reason of being located in, organized under the laws of, or having its principal place of business in, Libya.

(51 FR 2463, Jan. 16, 1986, as amended at 53 FR 5571, Feb. 25, 1988)

31 CFR 550.305 Libyan person.

The term Libyan person means any Libyan citizen, any juridical person organized under the laws of Libya, or any juridical person owned or controlled, directly or indirectly, by a Libyan citizen or the Government of Libya.

31 CFR 550.306 Person.

The term person means an individual, partnership, association, corporation, or other organization.

31 CFR 550.307 United States.

The term United States means the United States and all areas under the jurisdiction or authority thereof.

31 CFR 550.308 United States person.

The term United States person or, as abbreviated, U.S. person, means any United States citizen, permanent resident alien, juridical person organized under the laws of the United States, or any person in the United States.

31 CFR 550.309 License.

Except as otherwise specified, the term license shall mean any license or authorization contained in or issued pursuant to this part.

31 CFR 550.310 General license.

A general license is any license or authorization the terms of which are set forth in this part.

31 CFR 550.311 Specific license.

A specific license is any license or authorization issued purusant to this part but not set forth in this part.

31 CFR 550.312 Credits or loans.

The term credits or loans means any transfer or extension of funds or credit on the basis of an obligation to repay, or any assumption or guarantee of the obligation of another to repay an extension of funds or credit. The term credits or loans includes, but is not limited to: overdrafts; currency swaps; purchases of debt securities issued by the Government of Libya after January 7, 1986; purchases of a loan made by another person; sales of financial assets subject to an agreement to repurchase; renewals or refinancings whereby funds or credits are transferred to or extended to the Government of Libya; and draw-downs on existing lines of credit.

31 CFR 550.313 Transfer.

The term transfer shall mean any actual or purported act or transaction, whether or not evidenced by writing, and whether or not done or performed within the United States, the purpose, intent or effect of which is to create, surrender, release, transfer, or alter, directly or indirectly, any right, remedy, power, privilege, or interest with respect to any property and, without limitation upon the foregoing, shall include the making, execution, or delivery of any assignment, power, conveyance, check, declaration, deed, deed of trust, power of attorney, power of appointment, bill of sale, mortgage, receipt, agreement, contract, certificate, gift, sale, affidavit, or statement; the appointment of any agent, trustee, or fiduciary; the creation or transfer of any lien; the issuance, docketing, filing, or the levy of or under any judgment, decree, attachment, injunction, execution, or other judicial or administrative process or order, or the service of any garnishment; the acquisition of any interest of any nature whatsoever by reason of a judgment or decree of any foreign country; the fulfillment of any condition, or the exercise of any power of appointment, power of attorney, or other power.

(51 FR 2463, Jan. 16, 1986)

31 CFR 550.314 Property; property interests.

The terms property and property interest or property interests shall include, but not by way of limitation, money, checks, drafts, bullion, bank deposits, savings accounts, debts, indebtedness, obligations, notes, debentures, stocks, bonds, coupons, any other financial securities, bankers' acceptances, mortgages, pledges, liens or other rights in the nature of security, warehouse receipts, bills of lading, trust receipts, bills of sale, any other evidences of title, ownership or indebtedness, letters of credit and any documents relating to any rights or obligations thereunder, powers of attorney, goods, wares, merchandise, chattels, stocks on hand, ships, goods on ships, real estate mortgages, deeds of trust, vendors' sales agreements, land contracts, real estate and any interest therein, leaseholds, ground rents, options, negotiable instruments, trade acceptances, royalties, book accounts, accounts payable, judgments, patents, trademarks or copyrights, insurance policies, safe deposit boxes and their contents, annuities, pooling agreements, contracts of any nature whatsoever, and any other property, real, personal, or mixed, tangible or intangible, or interest or interests therein, present, future or contingent.

(51 FR 2463, Jan. 16, 1986)

31 CFR 550.315 Interest.

Except as otherwise provided in this part, the term interest when used with respect to property shall mean an interest of any nature whatsoever, direct or indirect.

(51 FR 2464, Jan. 16, 1986)

31 CFR 550.316 Blocked account; blocked property.

The terms blocked account and blocked property shall mean any account or property in which the Government of Libya has an interest, with respect to which payments, transfers or withdrawals or other dealings may not be made or effected except pursuant to an authorization or license authorizing such action.

(51 FR 2464, Jan. 16, 1986)

31 CFR 550.317 Domestic bank.

(a) The term domestic bank shall mean any branch or office within the United States of any of the following which is not a Libyan entity: Any bank or trust company incorporated under the banking laws of the United States or of any state, territory, or district of the United States, or any private bank or banker subject to supervision and examination under the banking laws of the United States or of any state, territory or district of the United States. The Secretary of the Treasury may also authorize any other banking institution to be treated as a ''domestic bank'' for the purpose of this definition or for the purpose of any or all sections of this part.

(b) The term domestic bank includes any branch or office within the United States of a foreign bank that is not a Libyan entity.

(51 FR 2464, Jan. 16, 1986)

31 CFR 550.318 Entity.

The term entity includes a corporation, partnership, association, or other organization.

(51 FR 2464, Jan. 16, 1986)

31 CFR 550.319 Entity of the Government of Libya; Libyan entity.

The terms entity of the Government of Libya and Libyan entity include:

(a) Any corporation, partnership, association, or other entity in which the Government of Libya owns a majority or controlling interest, any entity substantially managed or funded by that government, and any entity which is otherwise controlled by that government;

(b) Any agency or instrumentality of the Government of Libya, including the Central Bank of Libya.

(51 FR 2464, Jan. 16, 1986)

31 CFR 550.320 Banking institution.

The term banking institution shall include any person engaged primarily or incidentally in the business of banking, of granting or transferring credits, or of purchasing or selling foreign exchange or procuring purchasers and sellers thereof, as principal or agent, or any person holding credits for others as a direct or incidental part of its business, or any broker; and each principal, agent, home office, branch or correspondent of any person so engaged shall be regarded as a separate ''banking institution.''

(51 FR 2464, Jan. 16, 1986)

31 CFR 550.320 Subpart D -- Interpretations

31 CFR 550.401 Reference to amended sections.

Reference to any section of this part or to any regulation, ruling, order, instruction, direction or license issued pursuant to this part shall be deemed to refer to the same as currently amended unless otherwise so specified.

31 CFR 550.402 Effect of amendment of sections of this part or of other orders, etc.

Any amendment, modification, or revocation of any section of this part or of any order, regulation, ruling, instruction, or license issued by or under the direction of the Secretary of the Treasury pursuant to section 203 of the International Emergency Economic Powers Act shall not, unless otherwise specifically provided, be deemed to affect any act done or omitted to be done, or any suit or proceeding had or commenced in any civil or criminal case prior to such amendment, modification, or revocation, and all penalties, forfeitures, and liabilities under any such order, regulation, ruling, instruction or license shall continue and may be enforced as if such amendment, modification, or revocation had not been made.

31 CFR 550.403 Extensions of credits or loans to Libya.

(a) The prohibition in 550.205 applies to the unlicensed renewal of credits or loans in existence on the effective date.

(b) The prohibition in 550.205 applies to credits or loans extended in any currency.

31 CFR 550.404 Import and export of goods in transit before the effective date.

(a) Section 550.201 does not apply to goods:

(1) If imported by vessel, where the vessel arrives within the limits of a port in the United States prior to the effective date with the intent to unlade such goods; or

(2) If imported other than by vessel, where the goods arrive within the Customs territory of the United States before the effective date.

(b) Section 550.202 does not apply to goods:

(1) If exported by vessel or airline, where the goods are laden on board before the effective date; or

(2) If exported other than by vessel or airplane, where the goods have left the United States before the effective date.

(51 FR 1354, Jan. 10, 1986, as amended at 51 FR 2464, Jan. 16, 1986)

31 CFR 550.405 Payments in connection with certain authorized transactions.

Payments are authorized in connection with transactions authorized under subpart E.

31 CFR 550.406 Offshore transactions.

(a) The provisions contained in 550.209 and 550.210 apply to transactions by U.S. persons in locations outside the United States with respect to property in which the U.S. person knows, or has reason to know, that the Government of Libya has or has had any interest since 4:10 p.m. EST, January 8, 1986, including:

(1) Importation into such locations of, or

(2) Dealings within such locations in, goods or services of Libyan origin.

(b) Example. A U.S. person may not, within the United States or abroad, purchase, sell, finance, insure, transport, act as a broker for the sale or transport of, or otherwise deal in, Libyan crude oil or petroleum products refined in Libya.

(c) Note. Exports or reexports of goods and technical data, or of the direct products of technical data (regardless of U.S. content), not prohibited by this part may require authorization from the U.S. Department of Commerce pursuant to the Export Administration Act of 1979, as amended, 50 U.S.C. App. 2401 et seq., and the Export Administration Regulations implementing that Act, 15 CFR parts 368-399.

(53 FR 5572, Feb. 25, 1988)

31 CFR 550.407 Transshipment through the United States prohibited.

(a) The prohibitions in 550.202 apply to the import into the United States, for transshipment or transit, of goods which are intended or destined for Libya.

(b) The prohibitions in 550.201 apply to the import into the United States, for transshipment or transit, of goods of Libyan origin which are intended or destined for third countries.

31 CFR 550.408 Imports from third countries; transshipments.

(a) Imports into the United States from third countries of goods containing raw materials or components of Libyan origin are not prohibited if those raw materials or components have been incorporated into manufactured products or otherwise substantially transformed in a third country.

(b) Imports into the United States of goods of Libyan origin which have been transshipped through a third country without being incorporated into manufactured products or otherwise substantially transformed in a third country are prohibited.

31 CFR 550.409 Exports to third countries; transshipment.

(a) Exports of goods or technology (including technical data and other information) from the United States to third countries are prohibited if the exporter knows, or has reason to know, that:

(1) The goods or technology are intended for transshipment to Libya (including passage through, or storage in, intermediate destinations) without coming to rest in a third country and without being substantially transformed or incorporated into manufactured products in a third country, or

(2) The exported goods are intended specifically for substantial transformation or incorporation in a third country into products to be used in Libya in the petroleum or petrochemical industry, or

(3) The exported technology is intended specifically for use in a third country in the manufacture of, or for incorporation into, products to be used in Libya in the petroleum or petrochemical industry.

(b) For the purposes of paragraph (a) of this section:

(1) The scope of activities encompassed by the petroleum and petrochemical industries shall include, but not be limited to, the following activities: Oil, natural gas, natural gas liquids, or other hydrocarbon exploration (including geophysical and geological assessment activity), extraction, production, refining, distillation, cracking, coking, blending, manufacturing, and transportation; petrochemical production, processing, manufacturing, and transportation;

(2) Exports subject to the prohibition in paragraph (a) of this section, include not only goods and technology for use in third-country products uniquely suited for use in the petroleum or petrochemical industry, such as oilfield services equipment, but also goods and technology for use in products, such as computers, office equipment, construction equipment, or building materials, which are suitable for use in other industries, but which are intended specifically for use in the petroleum or petrochemical industry; and

(3) Goods and technology are intended specifically for a third-country product to be used in Libya if the particular product is being specifically manufactured to fill a Libyan order or if the manufacturer's sales of the particular product are predominantly to Libya.

(c) Specific licenses may be issued to authorize exports to third countries otherwise prohibited by paragraph (a)(2) of this section in appropriate cases, such as those involving extreme hardship or where the resulting third-country products will have insubstantial U.S. content.

(d) Exports of goods or technology from the United States to third countries are not prohibited where the exporter has reasonable cause to believe that:

(1) Except as otherwise provided in paragraph (a) of this section, the goods will be substantially transformed or incorporated into manufactured products before export to Libya, or

(2) The goods will come to rest in a third country for purposes other than reexport to Libya, e.g., for purposes of restocking the inventory of a distributor whose sales of the particular goods are not predominantly to Libya, or

(3) The technology will come to rest in a third country for purposes other than reexport to Libya.

(e) Note: Exports or reexports of goods and technical data, or of the direct products of technical data (regardless of U.S. content), not prohibited by this part may require authorization from the U.S. Department of Commerce pursuant to the Export Administration Act of 1979, as amended, 50 U.S.C. App. 2401 et seq. , and the Export Administration Regulations Implementing that Act, 15 CFR parts 368 through 399.

(51 FR 22803, June 23, 1986; 51 FR 25635, July 15, 1986)

31 CFR 550.410 Release from bonded warehouse or foreign trade zone.

Section 550.201 does not prohibit the release from a bonded warehouse or a foreign trade zone of goods of Libyan origin imported into a bonded warehouse or a foreign trade zone prior to the effective date.

31 CFR 550.411 Publications.

For purposes of this part, publications include books, newspapers, magazines, films, phonograph records, tape recordings, photographs, microfilm, microfiche, and posters, including items described in the following:

(a) 15 CFR 399.1, Control List, Group 5, CL No. 7599I: microfilm that reproduces the content of certain publications, and similar materials.

(b) 15 CFR 399.1, Control List, Group 9, CL No. 7999I: certain publications and related materials.

31 CFR 550.412 Termination and acquisition of an interest of the Government of Libya.

(a) Whenever a transaction licensed or authorized by or pursuant to this part results in the transfer of property (including any property interest) away from the Government of Libya, such property shall no longer be deemed to be property in which the Government of Libya has or has had an interest unless there exists in the property another such interest the transfer of which has not been effected pursuant to license or other authorization.

(b) Unless otherwise specifically provided in a license or authorization issued pursuant to this part, if property (including any property interest) is transferred to the Government of Libya, such property shall be deemed to be property in which there exists an interest of the Government of Libya.

(51 FR 2464, Jan. 16, 1986)

31 CFR 550.413 Payments to Libya prohibited.

The prohibition of transfers of property or interests in property to the Government of Libya in 550.209 applies to payments and transfers of any kind whatsoever, including payment of debt obligations, fees, taxes, and royalties owed to the Government of Libya, and also including payment or transfer of dividend checks, interest payments, and other periodic payments. Such payments may be made into blocked accounts as provided in 550.511.

(51 FR 2464, Jan. 16, 1986)

31 CFR 550.414 Exports of Libyan-titled goods.

(a) The prohibitions contained in 550.209 shall apply to any goods in the possession or control of a U.S. person if the Government of Libya had title to such property as of 4:10 p.m. e.s.t., on January 8, 1986, or acquired title after such time.

(b) Section 550.209 does not prohibit the export to Libya of the goods described in paragraph (a) of this section if such export is either not prohibited by 550.202 or permitted by an authorization or license issued pursuant to this part.

(c) If the goods described in paragraph (a) of this section are not exported as described in paragraph (b) of this section, the property shall remain blocked and no change in title or other transaction regarding such property is permitted, except pursuant to an authorization or license issued pursuant to this part.

(51 FR 2464, Jan. 16, 1986)

31 CFR 550.415 Advance payments.

The prohibitions contained in 550.209 do not apply to goods manufactured, consigned, or destined for export to Libya, if the Government of Libya did not have title to such goods on or at any time after 4:10 p.m. e.s.t., January 8, 1986. However, if such goods are not exported to Libya prior to 12:01 p.m. e.s.t., February 1, 1986, then any advance payment received in connection with such property is subject to the prohibitions contained in 550.209.

(51 FR 2464, Jan. 16, 1986)

31 CFR 550.416 Imports of Libyan goods and purchases of goods from Libya.

The prohibitions contained in 550.209 shall not apply to the goods described in 550.201 and 550.204 if the importation or purchase of such goods is either not prohibited by 550.201 and 550.204 or permitted by an authorization or license issued pursuant to this part. However, any payments in connection with such imports or purchases are subject to the prohibitions contained in 550.209.

(51 FR 2464, Jan. 16, 1986)

31 CFR 550.417 Letters of credit.

(a) Question. Prior to 4:10 p.m. e.s.t., January 8, 1986, a bank that is a U.S. person has issued or confirmed a documentary letter of credit for the Government of Libya as account party in favor of a U.S. person. The bank does not hold funds for the Government of Libya out of which it could reimburse itself for payment under the letter of credit. The U.S. person presents documentary drafts for exports to Libya made after 4:10 p.m. e.s.t., January 8, 1986. May the bank pay the U.S. exporter against the drafts?

Answer. No. Such a payment is prohibited by 550.206 and 550.209, as an extension of credit to the Government of Libya and a transfer of property in which there is an interest of the Government of Libya.

(b) Question. On the same facts as in paragraph (a), the bank holds deposits for the Government of Libya. May it pay on the letter of credit and debit the blocked funds for reimbursement?

Answer. No. A debit to a blocked account is prohibited by 550.209 except as licensed.

(c) Question. On the same facts as in paragraph (a), the Government of Libya, after 4:10 p.m. e.s.t., January 8, 1986, transfers funds to the bank to collateralize the letter of credit for purposes of honoring the obligation to the U.S. exporter. Is the transfer authorized and may the bank pay against the draft?

Answer. Yes. In accordance with 550.515, the transfer by the Government of Libya to the bank is licensed. The funds are not blocked and the bank is authorized to pay under the letter of credit and reimburse itself from the funds.

(d) Question. Prior to 4:10 p.m. e.s.t., January 8, 1986, a foreign bank confirms a documentary letter of credit issued by its U.S. agency or branch for a non-Libyan account party in favor of a Libyan entity. Can the U.S. agency or branch of the foreign bank transfer funds to that foreign bank in connection with that foreign bank's payment under the letter of credit?

Answer. No, the payment of the U.S. agency or branch is blocked, unless the foreign bank made payment to the Libyan entity prior to 4:10 p.m. e.s.t., January 8, 1986.

(51 FR 2465, Jan. 16, 1986)

31 CFR 550.418 Payments from blocked accounts for U.S. exporters and other obligations prohibited.

No debits may be made to a blocked account to pay obligations to U.S. persons or other persons, including payment for goods, technology or services exported prior to 12:01 a.m. e.s.t., February 1, 1986, except as authorized pursuant to this part.

(51 FR 2465, Jan. 16, 1986)

31 CFR 550.419 Acquisition of instruments, including bankers' acceptances.

Section 550.209 prohibits the acquisition by any U.S. person of any obligation, including bankers' acceptances, in which the documents evidencing the obligation indicate, or the U.S. person has actual knowledge, that the transaction being financed covers property in which, on or after 4:10 p.m. e.s.t., January 8, 1986, the Government of Libya has an interest of any nature whatsoever.

(51 FR 2465, Jan. 16, 1986)

31 CFR 550.420 Indirect payments to the Government of Libya.

The prohibition in 550.209 on payments or transfers to the Government of Libya applies to indirect payments (including reimbursement of a non-U.S. person for payment, as, for example, on a guarantee) made after 4:10 p.m. e.s.t., January 8, 1986.

(51 FR 2465, Jan. 16, 1986)

31 CFR 550.421 Setoffs prohibited.

A setoff against a blocked account, whether by a bank or other U.S. person, is a prohibited transfer under 550.209 if effected after 4:10 p.m. e.s.t., January 8, 1986.

(51 FR 2465, Jan. 16, 1986)

31 CFR 550.421 Subpart E -- Licenses, Authorizations, and Statements of Licensing Policy

31 CFR 550.501 Effect of license or authorization.

(a) No license or other authorization contained in this part, or otherwise issued by or under the direction of the Secretary of the Treasury pursuant to section 203 of the International Emergency Economic Powers Act, shall be deemed to authorize or validate any transaction effected prior to the issuance of the license, unless such license or other authorization specifically so provides.

(b) No regulation, ruling, instruction, or license authorizes a transaction prohibited under this part unless the regulation, ruling, instruction, or license is issued by the Treasury Department and specifically refers to this part. No regulation, ruling, instruction, or license referring to this part shall be deemed to authorize any transactions prohibited by any provision of parts 500, 505, 515, 520, 535, 540, or 545 of this chapter unless the regulation, ruling, instruction or license specifically refers to such provision.

(c) Any regulation, ruling, instruction, or license authorizing a transaction otherwise prohibited under this part has the effect of removing a prohibition or prohibitions in subpart B from the transaction, but only to the extent specifically stated by its terms. Unless the regulation, ruling, instruction, or license otherwise specifies, such an authorization does not create any right, duty, obligation, claim, or interest in, or with respect to, any property which would not otherwise exist under ordinary principles of law.

31 CFR 550.502 Exclusion from licenses and authorizations.

The Secretary of the Treasury reserves the right to exclude any person or property from the operation of any license or to restrict the applicability thereof to any person or property. Such action shall be binding upon all persons receiving actual or constructive notice thereof.

31 CFR 550.503 Imports pursuant to Executive Order 12538.

Petroleum products loaded aboard maritime vessels at any time prior to November 17, 1985 may be imported into the United States if such importation would be permitted pursuant to Executive Order 12538 of November 15, 1985 (50 FR 47527).

31 CFR 550.504 Certain exports authorized.

All transactions ordinarily incident to the exportation of any item, commodity, or product from the United States to or destined for Libya are authorized if such exports are authorized under one or more of the following regulations administered by the Department of Commerce:

(a) 15 CFR 371.6, General license BAGGAGE: accompanied and unaccompanied baggage;

(b) 15 CFR 371.13, General license GUS: shipments to personnel and agencies of the U.S. Government;

(c) 15 CFR 371.18, General license GIFT: shipments of gift parcels;

(d) 15 CFR 379.3, General license GTDA: technical data available to all destinations.

31 CFR 550.505 Certain imports for diplomatic or official personnel authorized.

All transactions ordinarily incident to the importation of any goods or services into the United States from Libya are authorized if such imports are destined for official or personal use by personnel employed by Libyan missions to international organizations located in the United States, and such imports are not for resale.

31 CFR 550.506 Certain services relating to participation in various events authorized.

The importation of services of Libyan origin into the United States is authorized where a Libyan national enters the United States on a visa issued by the State Department for the purpose of participating in a public conference, performance, exhibition or similar event.

31 CFR 550.507 Import of publications authorized.

The importation into the United States is authorized of all Libyan publications as defined in 550.411.

31 CFR 550.508 Import of certain gifts authorized.

The importation into the United States is authorized for goods of Libyan origin sent as gifts to persons in the United States where the value of the gift is not more than $100.

31 CFR 550.509 Import of accompanied baggage authorized.

Persons entering the United States directly or indirectly from Libya are authorized to import into the United States personal accompanied baggage normally incident to travel.

31 CFR 550.510 Telecommunications and mail transactions authorized.

All transactions of common carriers incident to the receipt or transmission of telecommunications and mail between the United States and Libya are authorized.

31 CFR 550.511 Payments to blocked accounts in domestic banks.

(a) Any payment or transfer of credit, including any payment or transfer by any U.S. person outside the United States, to a blocked account in a domestic bank in the name of the Government of Libya is hereby authorized, provided that such payment or transfer shall not be made from any blocked account if such payment or transfer represents, directly or indirectly, a transfer of any interest of the Government of Libya to any other country or person.

(b) This section does not authorize any transfer from a blocked account within the United States to an account held by any bank outside the United States. This section only authorizes payment into a blocked account held by a domestic bank as defined in 550.317.

(c) This section does not authorize:

(1) Any payment or transfer to any blocked account held in a name other than that of the Government of Libya where such government is the ultimate beneficiary of such payment or transfer; or

(2) Any foreign exchange transaction in the United States including, but not by way of limitation, any transfer of credit, or payment of an obligation, expressed in terms of the currency of any foreign country.

(d) This section does not authorize any payment or transfer of credit comprising an integral part of a transaction which cannot be effected without the subsequent issuance of a further license.

(e) This section does not authorize the crediting of the proceeds of the sale of securities held in a blocked account or a sub-account thereof, or the income derived from such securities to a blocked account or sub-account under any name or designation which differs from the name or designation of the specific blocked account or sub-account in which such securities were held.

(f) This section does not authorize any payment or transfer from a blocked account in a domestic bank to a blocked account held under any name or designation which differs from the name or designation of the specified blocked account or sub-account from which the payment or transfer is made.

(g) The authorization in paragraph (a) of this section is subject to the condition that written notification from the domestic bank receiving an authorized payment or transfer is furnished by the transferor to the Office of Foreign Assets Control confirming that the payment or transfer has been deposited in a blocked account under the regulations in this part and providing the account number, the name and address of the Libyan entity in whose name the account is held, and the name and address of the domestic bank.

(h) This section authorizes transfer of a blocked demand deposit account to a blocked interest-bearing account in the name of the same person at the instruction of the depositor at any time. If such transfer is to a blocked account in a different domestic bank, such bank must furnish notification as described in paragraph (g) of this section.

(51 FR 2465, Jan. 16, 1986)

31 CFR 550.512 Payment of certain checks and drafts and documentary letters of credit.

(a) A bank which is a U.S. person is hereby authorized to make payments from blocked accounts within such bank of checks and drafts drawn or issued prior to 4:10 p.m. e.s.t., January 8, 1986, provided that:

(1) The amount involved in any one payment, acceptance, or debit does not exceed $5,000; or

(2) The check or draft was in process of collection by a bank which is a U.S. person on or prior to such date and does not exceed $50,000; or

(3) The check or draft is in payment for goods furnished or services rendered by a non-Libyan entity prior to 4:10 p.m. e.s.t., January 8, 1986.

(4) The authorization contained in paragraph (a) of this section, shall expire at 12:01 a.m., February 17, 1986.

(b) Payments are authorized from blocked accounts of documentary drafts drawn under irrevocable letters of credit issued or confirmed in favor of a non-Libyan entity by a bank which is a U.S. person prior to 4:10 p.m. e.s.t., January 8, 1986, provided that (1) the goods that are the subject of the payment under the letter of credit have been exported prior to 4:10 p.m. e.s.t., January 8, 1986; and (2) payment under the letter of credit is made by 12:01 a.m. e.s.t., February 17, 1986.

(c) Paragraphs (a) and (b) of this section, do not authorize any payment to a Libyan entity except payments into a blocked account in a domestic bank in accordance with 550.511.

(51 FR 2465, Jan. 16, 1986)

31 CFR 550.513 Completion of certain securities transactions.

(a) Banking institutions within the United States are hereby authorized to complete, on or before January 21, 1986, purchases and sales made prior to 4:10 p.m. e.s.t., January 8, 1986, of securities purchased or sold for the account of the Government of Libya provided the following terms and conditions are complied with, respectively:

(1) The proceeds of such sale are credited to a blocked account in a banking institution within the United States in the name of the person for whose account the sale was made; and

(2) The securities so purchased are held in a blocked account in a banking institution within the United States in the name of the person for whose account the purchase was made.

(b) This section does not authorize the crediting of the proceeds of the sale of securities held in a blocked account or a sub-account thereof, to a blocked account or sub-account under any name or designation which differs from the name or designation of the specific blocked account or sub-account in which such securities were held.

(51 FR 2466, Jan. 16, 1986)

31 CFR 550.515 Payment by the Government of Libya of obligations to persons within the United States.

(a) The transfer of funds after 4:10 p.m. e.s.t., January 8, 1986, by, through, or to any banking institution or other person within the United States solely for purposes of payment of obligations owed by the Government of Libya to persons within the United States is authorized, provided that there is no debit to a blocked account. Property is not blocked by virtue of being transferred or received pursuant to this section.

(b) A person receiving payment under this section may distribute all or part of that payment to anyone, provided that any such payment to the Government of Libya must be to a blocked account in a domestic bank.

(51 FR 2466, Jan. 16, 1986)

31 CFR 550.516 Unblocking of foreign currency deposits held by U.S. persons overseas.

Deposits in currencies other than U.S. dollars held abroad by U.S. persons are unblocked, provided, however, that conversions of blocked dollar deposits into foreign currencies are not authorized.

(51 FR 2466, Jan. 16, 1986)

31 CFR 550.560 Transactions related to travel to, and residence within, Libya by immediate family members of Libyan nationals.

(a) General License. Subject to compliance with the registration requirements set forth in paragraph (d) of this section, the following transactions are authorized in connection with travel to, from and within Libya and residence within Libya by U.S. citizens and permanent resident aliens who are immediate family members of Libyan nationals:

(1) All transportation-related transactions ordinarily incident to travel to, from and within Libya.

(2) All transactions ordinarily incident to residence within Libya, including payment of living expenses and the acquisition in Libya of goods for personal use or consumption there.

(3) All transactions incident to the processing and payment of checks, drafts, traveler's checks, and similar instruments negotiated in Libya by any person licensed under this section.

(4) The purchase within Libya and importation as accompanied baggage of items for noncommercial use, provided that the aggregate value of such purchases imported into the United States conforms to limitations established by the United States Customs Service.

(b) Definition. For purposes of this section, the term immediate family member means a spouse, child, parent, mother-in-law, father-in-law, son-in-law or daughter-in-law.

(c) Specific Licenses. Specific licenses authorizing the transactions set forth in paragraph (a) of this section may be issued in appropriate cases to persons similarly situated to the persons described in paragraph (b) of this section where such specific licenses are necessary to preserve the integrity of established family units.

(d) Registration. (1) The general license set forth in this section is available only to those U.S. citizens and permanent resident aliens who register their eligibility in writing with either of the following:

Embassy of Belgium, Ali Obeydah St., Ibn El Jarah No. 1, Immeuble Chirlando, Tripoli, Libya, Telephone: 37797

or

Licensing Section, Office of Foreign Assets Control, Department of the Treasury, Washington, DC 20220, Telephone: (202) 376-0236.

Registration under this paragraph is deemed complete upon receipt at one of the above addresses of a letter, signed by or on behalf of each eligible U.S. citizen or permanent resident alien being registered, containing the following information:

(i) The name and the date and place of birth of the U.S. citizen(s) or permanent resident alien(s) registering (the ''registrant''), including the name on which the registrant's most recent U.S. passport or Alien Registration Receipt Card was issued, if different;

(ii) If applicable, the place and date of the registrant's naturalization as a U.S. citizen, and the number of the registrant's naturalization certificate, or, for permanent resident aliens, the Alien Registration Number of the registrant's Alien Registration Receipt Card;

(iii) The name, relationship, and address of the Libyan national with whom the registrant resides as an immediate family member and whose relationship forms the basis for the registrants's eligibility under this general license; and

(iv) The number and issue date of the registrant's current U.S. passport, and the most recent date on which the passport was validated by the U.S. Department of State for travel to Libya; or, if the registrant does not hold a current U.S. passport, the country, issue date, and number of the registrant's current passport or other travel document, if any.

(2) The lack of validation of a registrant's U.S. passport for travel to Libya does not affect eligibility for the benefits of the general license set forth in this section for persons who otherwise qualify. Current information on travel document status as requested in paragraph (d)(1) of this section must, however, be furnished to register a registrant's eligibility for this license.

(e) Other Requirements. The general license set forth in this section shall not operate to relieve any person licensed hereunder from compliance with any other U.S. legal requirements applicable to the transactions authorized pursuant to paragraph (a) of this section.

(51 FR 19752, June 2, 1986)

31 CFR 550.568 Certain standby letters of credit and performance bonds.

(a) Notwithstanding any other provision of law, payment into a blocked account in a domestic bank by an issuing or confirming bank under a standby letter of credit in favor of a Libyan entity is prohibited by 550.209 and not authorized, notwithstanding the provisions of 550.511, if either (1) a specific license has been issued pursuant to the provisions of paragraph (b) of this section or (2) ten business days have not expired after notice to the account party pursuant to paragraph (b) of this section.

(b) Whenever an issuing or confirming bank shall receive such demand for payment under such a standby letter of credit, it shall promptly notify the account party. The account party may then apply within five business days for a specific license authorizing the account party to establish a blocked account on its books in the name of the Libyan entity in the amount payable under the credit, in lieu of payment by the issuing or confirming bank into a blocked account and reimbursement therefor by the account party. Nothing in this section relieves any such bank or such account party from giving any notice of defense against payment or reimbursement that is required by applicable law.

(c) Where there is outstanding a demand for payment under a standby letter of credit, and the issuing or confirming bank has been enjoined from making payment, upon removal of the injunction, the account party may apply for a specific license for the same purpose and in the same manner as that set forth in paragraph (b) of this section. The issuing or confirming bank shall not make payment under the standby letter of credit unless (1) ten business days have expired since the bank has received notice of the removal of the injunction and (2) a specific license issued to the account party pursuant to the provisions of this paragraph has not been presented to the bank.

(d) If necessary to assure the availability of the funds blocked, the Secretary may at any time require the payment of the amounts due under any letter of credit described in paragraph (a) of this section into a blocked account in a domestic bank or the supplying of any form of security deemed necessary.

(e) Nothing in this section precludes the account party on any standby letter of credit or any other person from at any time contesting the legality of the demand from Libyan entity or from raising any other legal defense to payment under the standby letter of credit.

(f) This section does not affect the obligation of the various parties of the instruments covered by this section if the instruments and payments thereunder are subsequently unblocked.

(g) For the purposes of this section, (1) the term ''standby letter of credit'' shall mean a letter of credit securing performance of, or repayment of any advance payments or deposits under, a contract with the Government of Libya, or any similar obligation in the nature of a performance bond; and (2) the term ''account party'' shall mean the person for whose account the standby letter of credit is opened.

(h) The regulations do not authorize any U.S. person to reimburse a non-U.S. bank for payment to the Government of Libya under a standby letter of credit, except by payments into a blocked account in accordance with 550.511 or paragraph (b) or (c) of this section.

(i) A person receiving a specific license under paragraph (b) or (c) of this section shall certify to the Office of Foreign Assets Control within five business days after receipt of that license that it has established the blocked account on its books as provided for in those paragraphs. However, in appropriate cases, this time period may be extended upon application to the Office of Foreign Assets Control when the account party has filed a petition with an appropriate court seeking a judicial order barring payment by the issuing or confirming bank.

(j) The extension or renewal of a standby letter of credit is authorized.

(51 FR 2466, Jan. 16, 1986)

31 CFR 550.568 Subpart F -- Reports

31 CFR 550.601 Required records.

Every person engaging in any transaction subject to this part shall keep a full and accurate record of each transaction in which he engages, including any transaction effected pursuant to license or otherwise, and such records shall be available for examination for at least two years after the date of such transaction.

31 CFR 550.602 Reports to be furnished on demand.

Every person is required to furnish under oath, in the form of reports or otherwise, at any time as may be required, complete information relative to any transaction subject to this part, regardless of whether such transaction is effected pursuant to license or otherwise. Such reports may be required to include the production of any books of account, contracts, letters, and other papers connected with any transaction in the custody or control of the persons required to make such reports. Reports with respect to transactions may be required either before or after such transactions are completed. The Secretary of the Treasury may, through any person or agency, conduct investigations, hold hearings, administer oaths, examine witnesses, receive evidence, take depositions, and require by subpoena the attendance and testimony of witnesses and the production of all books, papers, and documents relating to any matter under investigation.

(51 FR 1354, Jan. 10, 1986, as amended at 51 FR 2467, Jan. 16, 1986)

31 CFR 550.605 Reports of U.S. persons with foreign affiliates that engage in Libyan transactions.

(a) Requirement for reports. Reports are required to be filed on or before August 15, 1986, in the manner prescribed in this section, with respect to all foreign affiliates that engaged in Libyan transactions at any time between July 1, 1985 and June 30, 1986.

(b) Who must report. A report must be filed by each U.S. person owning or controlling any foreign affiliate that engaged in Libyan transactions at any time between July 1, 1985 and June 30, 1986. A single U.S. person within a consolidated or affiliated group may be designated to report on each foreign affiliate of the U.S. members of the group. Such centralized reporting may be done by the U.S. person who owns or controls, or has been delegated authority to file on behalf of, the remaining U.S. persons in the group.

(1) Reporting exemption. A U.S. person is exempt from the filing requirements of this section if the Libyan transactions of all foreign affiliates of such person, and of such person's consolidated or affiliated group, for the period from July 1, 1985, through June 30, 1986, had an aggregate value not exceeding $50,000.

(2) U.S. branches of foreign entities. The Libyan transactions of an entity organized or located outside the United States, and which is not owned or controlled by U.S. persons, are not subject to the reporting requirements of this section merely because such foreign entity has a U.S. branch, office, or agency that constitutes a U.S. person pursuant to 550.308.

(c) Contents of report. The following information shall be provided concerning each foreign affiliate that engaged in Libyan transactions during the Reporting Period (with responses numbered to correspond with the numbers used below):

(1) Identification of reporting U.S. person.

(i) Name;

(ii) Address (indicate both street and mailing address, if different);

(iii) Name and telephone number of individual to contact (indicate title or position, if applicable);

(iv) Relationship to foreign affiliate and percentage of direct and/or indirect ownership.

(2) Identification of foreign affiliate.

(i) Full entity name;

(ii) Address (street and mailing addresses);

(iii) Country in which organized or incorporated, and entity type (corporation, partnership, limited liability company, etc.).

(3) Information on Libyan transactions of each foreign affiliate. (Data provided in response to paragraphs (c)(3) (i), (ii), (iii), and (iv) of this section shall be separately stated for Periods I and II, as defined in paragraph (e)(3) of this section, with aggregate data in response to paragraphs (c)(3) (i), (iii), and (v) of this section further segregated between sales and purchase transactions.)

(i) Brief but complete description of the nature of goods or technology sold or purchased, or of services rendered or purchased, by the foreign affiliate in Libyan transactions during the Reporting Period, and, for each type of transaction, identification of the Libyan end-user(s) or vendor(s) of the goods, technology, or services;

(ii) Number of employees involved in Libyan transactions to the extent of at least 25% of their time during Period I or Period II, categorized by nationality and location (example: Five (nationality) employees in Libya);

(iii) Approximate amount (in U.S. dollars) of revenue from, or expense for, Libyan transactions of the foreign affiliate during the Reporting Period;

(iv) Approximate amount (in U.S. dollars) of (A) taxes, (B) rents, and (C) royalties (state each separately) paid to the Government of Libya or Libyan entities (as defined in 550.304 and 550.319) during the Reporting Period;

(v) Anticipated revenue from, or expense for, Libyan transactions of the foreign affiliate (in U.S. dollars) for the period from July 1, 1986 through June 30, 1987;

(vi) Anticipated number of employees involved in Libyan transactions to the extent of at least 25% of their time for the period from July 1, 1986 through June 30, 1987.

(d) Where to report. Reports should be prepared in triplicate, two copies of which are to be filed with the Census Section, Unit 605, Office of Foreign Assets Control, Department of the Treasury, Washington, DC 20220. The third copy shall be retained for the reporter's business records.

(e) Definitions. For the purposes of this section, the following terms have the meanings indicated below:

(1) Foreign affiliate means an entity (other than a U.S. person as defined in 550.308) which is organized or located outside the United States, and which is owned or controlled by a U.S. person or persons.

(2) Libyan transactions means (i) sales of goods or technology, or the provision of services (including brokerage and financial services), to, or for the benefit of, the Government of Libya, persons within Libya, or Libyan entities wherever located, or (ii) purchases of goods, technology, or services from the Government of Libya, persons within Libya, or Libyan entities wherever located.

(3) Reporting Period means the 12-month period from July 1, 1985, through June 30, 1986. The Reporting Period is divided into two six-month periods: ''Period I'' consists of the six-month period ended December 31, 1985; ''Period II'' consists of the six-month period ending June 30, 1986.

(51 FR 25634, July 15, 1986; 51 FR 26687, July 25, 1986)

31 CFR 550.630 Reports on Form TFR-630 (TDF 90-22.32).

(a) Requirement for reports. Reports on Form TFR-630 (TDF 90-22.32) are hereby required to be filed on or before November 20, 1987, in the manner prescribed herein, with respect to all property held by any United States person at any time between 4:10 p.m. e.s.t., January 8, 1986, and June 30, 1987, in which property the Government of Libya or any Libyan entity has or has had any interest.

(b) Who must report. Reports on Form TFR-630 (TDF 90-22.32) must be filed by each of the following:

(1) Any U.S. person, or his successor, who at 4:10 p.m. e.s.t., January 8, 1986, or any subsequent date up to and including June 30, 1987, had in his custody, possession or control, directly or indirectly, in trust or otherwise, property in which there was, within such period, any direct or indirect interest of the Government of Libya or any Libyan entity, whether or not such property continued to be held by that person on June 30, 1987; and

(2) Any business or non-business entity in the United States in which the Government of Libya or any Libyan entity held any financial interest on January 8, 1986, or any subsequent date up to and including June 30, 1987.

(c) Property not required to be reported. A report on Form TFR-630 (TDF 90-22.32) is not required with respect to:

(1) Property of a private Libyan national; and

(2) Patents, copyrights, trademarks and inventions, but this exemption shall not constitute a waiver of any reporting requirement with respect to royalties due and unpaid.

(d) Filing Form TFR-630 (TDF 90-22.32). Reports on Form TFR-630 (TDF 90-22.32) shall be prepared in triplicate. On or before November 20, 1987, two copies shall be sent in a set to Unit 630, Office of Foreign Assets Control, Department of the Treasury, Washington, DC 20220. The third copy must be retained with the reporter's records.

(e) Certification. Every report on Form TFR-630 (TDF 90-22.32) shall contain the certification required in Part E of the form. Failure to complete the certification shall render the report ineffective, and the submission of such a report shall not constitute compliance with this section.

(f) Confidentiality of reports. Reports on Form TFR-630 (TDF 90-22.32) are regarded as privileged and confidential.

(Approved by the Office of Management and Budget under control number 1505-0102)

(52 FR 35548, Sept. 22, 1987)

31 CFR 550.635 Reports on Form TFR-635 (TDF 90-22.33).

(a) Requirement for reports. Reports on Form TFR-635 (TDF 90-22.33) are hereby required to be filed on or before November 20, 1987, in the manner prescribed herein, with respect to claims for losses due to expropriation, nationalization, or other taking of property or businesses in Libya, including any special measures such as Libyan exchange controls directed against such property or businesses; claims for debt defaults, for damages for breach of contract or similar damages; and personal claims for salaries or for injury to person or property.

(b) Who must report. Reports on Form TFR-635 (TDF 90-22.33) must be filed by every U.S. person who had a claim outstanding against the Government of Libya or any Libyan entity which arose before June 30, 1987. No report is to be submitted by a U.S. branch of a foreign firm not owned or controlled by a U.S. person.

(c) Filing Form TFR-635 (TDF 90-22.33). Reports on Form TFR-635 (TDF 90-22.33) shall be prepared in triplicate. On or before November 20, 1987, two copies shall be sent in a set to Unit 635, Office of Foreign Assets Control, Department of the Treasury, Washington, DC 20220. The third copy must be retained with the reporter's record.

(d) Certification. Every report on Form TFR-635 (TDF 90-22.33) shall contain the certification required on Part C of the form. Failure to complete the certification shall render the report ineffective, and the submission of such a report shall not constitute compliance with this section.

(e) Confidentiality of reports. Reports on Form TFR-635 (TDF 90-22.33) are regarded as privileged and confidential.

(Approved by the Office of Management and Budget under control number 1505-0103)

(52 FR 35549, Sept. 22, 1987)

31 CFR 550.635 Subpart G -- Penalties

31 CFR 550.701 Penalties.

(a) Attention is directed to section 206 of the International Emergency Economic Powers Act, 50 U.S.C. 1705, which provides in part:

A civil penalty of not to exceed $10,000 may be imposed on any person who violates any license, order, or regulation issued under this title.

Whoever willfully violates any license, order, or regulation issued under this title shall, upon conviction, be fined not more than $50,000, or, if a natural person, may be imprisoned for not more than ten years, or both; and any officer, director, or agent of any corporation who knowingly participates in such violation may be punished by a like fine, imprisonment, or both.

This section of the International Emergency Economic Powers Act is applicable to violations of any provision of this part and to violations of the provisions of any license, ruling, regulation, order, direction, or instruction issued by or pursuant to the direction or authorization of the Secretary of the Treasury pursuant to this part or otherwise under the International Emergency Economic Powers Act.

(b) Attention is also directed to 18 U.S.C. 1001, which provides:

Whoever, in any matter within the jurisdiction of any department or agency of the United States knowingly and willfully falsifies, conceals or covers up by any trick, scheme, or device a material fact, or makes any false, fictitious or fraudulent statements or representation or makes or uses any false writing or document knowing the same to contain any false, fictitious or fraudulent statement or entry, shall be fined not more than $10,000 or imprisoned not more than five years, or both.

(c) Violations of this part may also be subject to relevant provisions of the Customs laws and other applicable laws.

31 CFR 550.702 Detention of shipments.

Import shipments into the United States of goods of Libyan origin in violation of 550.201 and export shipments from the United States of goods destined for Libya in violation of 550.202 shall be detained. No such import or export shall be permitted to proceed, except as specifically authorized by the Secretary of the Treasury. Such shipments shall be subject to licensing, penalties or forfeiture action, under the Customs laws or other applicable provision of law, depending on the circumstances.

31 CFR 550.703 Prepenalty notice.

(a) When required. If the Director of the Office of Foreign Assets Control (hereinafter ''Director) has reasonable cause to believe that there has occurred a violation of any provision of this part or a violation of the provisions of any license, ruling, regulation, order, direction or instruction issued by or pursuant to the direction or authorization of the Secretary of the Treasury pursuant to this part or otherwise under the International Emergency Economic Powers Act, and the Director determines that further proceedings are warranted, he shall issue to the person concerned a notice of his intent to impose a monetary penalty. The prepenalty notice shall be issued whether or not another agency has taken any action with respect to this matter.

(b) Contents -- (1) Facts of violation.

The prepenalty notice shall:

(i) Describe the violation.

(ii) Specify the laws and regulations allegedly violated.

(iii) State the amount of the proposed monetary penalty.

(2) Right to make presentations. The prepenalty notice also shall inform the person of his right to make a written presentation within thirty (30) days of mailing of the notice as to why a monetary penalty should not be imposed, or, if imposed, why it should be in a lesser amount than proposed.

(53 FR 7357, Mar. 8, 1988)

31 CFR 550.704 Presentation responding to prepenalty notice.

(a) Time within which to respond. The named person shall have 30 days from the date of mailing of the prepenalty notice to make a written presentation to the Director.

(b) Form and contents of written presentation. The written presentation need not be in any particular form, but shall contain information sufficient to indicate that it is in response to the prepenalty notice. It should contain responses to the allegations in the prepenalty notice and set forth the reasons why the person believes the penalty should not be imposed or, if imposed, why it should be in a lesser amount than proposed.

(53 FR 7357, Mar. 8, 1988)

31 CFR 550.705 Penalty notice.

(a) No violation. If, after considering any presentations made in response to the prepenalty notice, the Director determines that there was no violation by the person named in the prepenalty notice, he promptly shall notify the person in writing of that determination and that no monetary penalty will be imposed.

(b) Violation. If, after considering any presentations made in response to the prepenalty notice, the Director determines that there was a violation by the person named in the prepenalty notice, he promptly shall issue a written notice of the imposition of the monetary penalty to that person.

(53 FR 7358, Mar. 8, 1988)

31 CFR 550.706 Referral to United States Department of Justice.

In the event that the person named does not pay the penalty imposed pursuant to this subpart or make payment arrangements acceptable to the Director within thirty days of the mailing of the written notice of the imposition of the penalty, the matter shall be referred to the United States Department of Justice for appropriate action to recover the penalty in a civil suit in a Federal district court.

(53 FR 7358, Mar. 8, 1988)

31 CFR 550.706 Subpart H -- Procedures

31 CFR 550.801 Licensing.

(a) General licenses. General licenses have been issued authorizing under appropriate terms and conditions certain types of transactions which are subject to the prohibitions contained in subpart B of this part. All such licenses are set forth in subpart E of this part. It is the policy of the Office of Foreign Assets Control not to grant applications for specific licenses authorizing transactions to which the provisions of an outstanding general license are applicable. Persons availing themselves of certain general licenses may be required to file reports and statements in accordance with the instructions specified in those licenses.

(b) Specific licenses -- (1) General course of procedure. Transactions subject to the prohibitions contained in subpart B of this part which are not authorized by general license may be effected only under specific licenses.

(2) Applications for specific licenses. Applications for specific licenses to engage in any transactions prohibited by or pursuant to this part may be filed by letter with the Office of Foreign Assets Control. Any person having an interest in a transaction or proposed transaction may file an application for a license authorizing such transaction, but the applicant for a specific license is required to make full disclosure of all parties in interest to the transaction so that a decision on the application may be made with full knowledge of all relevant facts and so that the identity and location of the persons who know about the transaction may be easily ascertained in the event of inquiry.

(3) Information to be supplied. The applicant must supply all information specified by relevant instructions, and must fully disclose the names of all the parties who are concerned with or interested in the proposed transaction. If the application is filed by an agent, the agent must disclose the name of his principal(s). Such documents as may be relevant shall be attached to each application as a part of such application except that documents previously filed with the Office of Foreign Assets Control may, where appropriate, be incorporated by reference. Applicants may be required to furnish such further information as is deemed necessary to a proper determination by the Office of Foreign Assets Control. Any applicant or other party in interest desiring to present additional information concerning the application may do so at any time. Arrangements for oral presentation may be made with the Office of Foreign Assets Control.

(4) Effect of denial. The denial of a license does not preclude the reopening of an application or the filing of a further application. The applicant or any other party in interest may at any time request explanation of the reasons for a denial by correspondence or personal interview.

(5) Reports under specific licenses. As a condition of the issuance of any license, the licensee may be required to file reports with respect to the transaction covered by the license, in such form and at such times and places as may be prescribed in the license or otherwise.

(6) Issuance of license. Licenses will be issued by the Office of Foreign Assets Control acting on behalf of the Secretary of the Treasury, acting in accordance with such regulations, rulings, and instructions as the Secretary of the Treasury or the Office of Foreign Assets Control may from time to time prescribe, or licenses may be issued by the Secretary of the Treasury acting directly or through a designated person, agency, or instrumentality.

(c) Address. License applications, reports, and inquiries should be addressed to the appropriate section or individual within the Office of Foreign Assets Control, or to its Director, at the following address: Office of Foreign Assets Control, U.S. Department of the Treasury, 1500 Pennsylvania Avenue, NW., Washington, DC 20220.

(51 FR 1354, Jan. 10, 1986, as amended at 57 FR 1389, 1390, Jan. 14, 1992)

31 CFR 550.802 Decisions.

The Office of Foreign Assets Control will advise each applicant of the decision respecting filed applications. The decision of the Office of Foreign Assets Control with respect to an application shall constitute a final agency action.

(51 FR 1354, Jan. 10, 1986, as amended at 57 FR 1390, Jan. 14, 1992)

31 CFR 550.803 Amendment, modification, or revocation.

The provisions of this part and any rulings, licenses, authorizations, instructions, orders or forms issued hereunder may be amended, modified, or revoked at any time.

31 CFR 550.804 Rulemaking.

(a) All rules and other public documents are issued by the Secretary of the Treasury upon recommendation of the Director of the Office of Foreign Assets Control. Except to the extent that there is involved any military, naval, or foreign affairs function of the United States or any matter relating to agency management or personnel or to public property, loans, grants, benefits, or contracts, and except when interpretive rules, general statements of policy, or rules of agency organization, practice, or procedure are involved, or when notice and public procedure are impracticable, unnecessary, or contrary to the public interest, interested persons will be afforded an opportunity to participate in rulemaking through the submission of written data, views, or arguments, with oral presentation at the discretion of the Director. In general, rulemaking by the Office of Foreign Assets Control involves foreign affairs functions of the United States. Wherever possible, however, it is the practice to hold informal consultations with interested groups or persons before the issuance of any rule or other public document.

(b) Any interested person may petition the Director of the Office of Foreign Assets Control in writing for the issuance, amendment or revocation of any rule.

31 CFR 550.805 Delegation by the Secretary of the Treasury.

Any action which the Secretary of the Treasury is authorized to take pursuant to Executive Order 12543 may be taken by the Director of the Office of Foreign Assets Control, or by any other person to whom the Secretary of the Treasury has delegated authority so to act.

31 CFR 550.806 Rules governing availability of information.

(a) The records of the Office of Foreign Assets Control required by the Freedom of Information Act (5 U.S.C. 552) to be made available to the public shall be made available in accordance with the definitions, procedures, requirements for payment of fees, and other provisions of the Regulations on the Disclosure of Records of the Departmental Offices and of other bureaus and offices of the Department of Treasury issued under 5 U.S.C. 552 and published in part 1 of this title.

(b) The records of the Office of Foreign Assets Control required by the Privacy Act (5 U.S.C. 552a) to be made available to an individual shall be made available in accordance with the definitions, procedures, requirements for payment of fees, and other provisions of the Regulations on Disclosure of Records of the Departmental Offices and of other bureaus and offices of the Department of the Treasury issued under 5 U.S.C. 552a and published in part 1 of this title.

(c) Any form used in connection with the Libyan Sanctions Regulations may be obtained in person from or by writing to the Office of Foreign Assets Control, U.S. Department of the Treasury, 1500 Pennsylvania Avenue, NW., Washington, DC 20220.

(57 FR 1390, Jan. 14, 1992)

31 CFR 550.807 Customs procedures: Merchandise specified in 550.201.

(a) With respect to merchandise specified in 550.201, appropriate Customs officers shall not accept or allow any:

(1) Entry for consumption or warehousing (including any appraisement entry, any entry of goods imported in the mails, regardless of value, and any informal entry);

(2) Entry for immediate exportation;

(3) Entry for transportation and exportation;

(4) Entry for immediate transportation;

(5) Withdrawal from warehouse;

(6) Entry, transfer or withdrawal from a foreign trade zone; or

(7) Manipulation or manufacture in a warehouse or in a foreign trade zone, unless:

(i) The merchandise was imported prior to 12:01 a.m., Eastern Standard Time, February 1, 1986, or

(ii) A specific license pursuant to this part is presented, or

(iii) Instructions from the Office of Foreign Assets Control, authorizing the transactions are received.

(b) Whenever a specific license is presented to an appropriate Customs officer in accordance with this section, one additional legible copy of the entry, withdrawal or other appropriate document with respect to the merchandise involved shall be filed with the appropriate Customs officers at the port where the transaction is to take place. Each copy of any such entry, withdrawal or other appropriate document, including the additional copy, shall bear plainly on its face the number of the license pursuant to which it is filed. The original copy of the specific license shall be presented to the appropriate Customs officers in respect of each such transactions and shall bear a notation in ink by the licensee or person presenting the license showing the description, quantity and value of the merchandise to be entered, withdrawn or otherwise dealt with. This notation shall be so placed and so written that there will exist no possibility of confusing it with anything placed on the license at the time of its issuance. If the license in fact authorizes the entry, withdrawal or other transactions with regard to the merchandise, the appropriate Customs officer, or other authorized Customs employee, shall verify the notation by signing or initialing it after first assuring himself that it accurately describes the merchandise it purports to represent. The license shall thereafter be returned to the person presenting it and the additional copy of the entry, withdrawal or other appropriate document shall be forwarded by the appropriate Customs officer to the Office of Foreign Assets Control.

(c) If it is unclear whether an entry, withdrawal or other action affected by this section requires a specific Foreign Assets Control license, the appropriate Customs officer shall withhold action thereon and shall advise such person to communicate directly with the Office of Foreign Assets Control to request that instructions be sent to the Customs officer to authorize him to take action with regard thereto.

(51 FR 1354, Jan. 10, 1986, as amended at 57 FR 1390, Jan. 14, 1992)

31 CFR 550.807 Subpart I -- Miscellaneous

31 CFR 550.901 Paperwork Reduction Act notice.

The information collection requirements in 550.210(d), 550.511 (g) and (h), 550.568 (b), (c), and (i), 550.601, 550.602, and 550.801(b) (2), (3), and (5) have been approved by the Office of Management and Budget and assigned control number 1505-0092. The information collection requirements in 550.560 (c) and (d) and 550.605 have been approved by the Office of Management and Budget and assigned control number 1505-0093.

(51 FR 28933, Aug. 13, 1986)

31 CFR 550.901 Pt. 550, App. A

31 CFR 550.901 Appendix A to Part 550 -- Organizations Determined To Be Within the Term ''Government of Libya'' (Specially Designated Nationals of Libya)

The names and addresses listed below are the most complete ones currently known to the Office of Foreign Assets Control. Unless otherwise indicated, listed organizations located in Libya meet the definition of ''Government of Libya'' not only at their locations inside of Libya, but also at all their other locations worldwide. Listed organizations outside of Libya also meet the definition of ''Government of Libya'' not only at their cited addresses, but also at all their other locations worldwide. The absence of any particular person from the list of specially designated nationals is not to be construed as evidence that it is not owned or controlled by, or acting or purporting to act directly or indirectly on behalf of, the Government of Libya. Please note that name variations and addresses are subject to change over time and that the Office of Foreign Assets Control will update name and address information periodically.

A. BORTOLOTTI & COMPANY S.P.A.,

(a.k.a. BORTOLOTTI),

Via Predore, 59, 24067 Sarnico, Bergamo, Italy, Cremona, Italy.

AD-DAR AL JAMAHIRIYA FOR PUBLISHING DISTRIBUTION & ADVERTISING,

P.O. Box 17459, Misurata, Libya,

P.O. Box 959, Tripoli, Libya,

P.O. Box 321, Benghazi, Libya,

P.O. Box 20108, Sebha, Libya,

P.O. Box 547, Valletta, Malta,

P.O. Box 15977, Casablanca, Morocco.

AGIP NORTH AFRICA AND MIDDLE EAST OIL COMPANY,

(a.k.a. AGIP (N.A.M.E.) LIMITED),

Adahr, P.O. Box 346, Sciara Giakarta, Tripoli, Libya,

Benghazi Office, P.O. Box 4120, Benghazi, Libya,

(Designation applies only to joint venture located in Libya).

AL HAMBRA HOLDING COMPANY,

Madrid, Spain.

AQUITAINE LIBYE,

Omar El Mokhtar Street, P.O. Box 282, Tripoli, Libya,

(Designation applies only to joint venture located in Libya).

ARAB REAL ESTATE COMPANY,

(a.k.a. ARESCO),

Beirut, Lebanon.

ARABIAN GULF OIL COMPANY,

(a.k.a. AGOCO),

P.O. Box 263, Al Kish, Benghazi, Libya,

P.O. Box 693-325, Ben Ashour Street, Tripoli, Libya,

Sarir Field, Libya,

Windsor House, 42-50 Victoria Street, London SW1H 0NW, United Kingdom.

ASTERIS S.A. INDUSTRIAL & COMMERCIAL CORPORATION,

Athens, Greece.

AZZAWIYA OIL REFINING COMPANY, INC.,

P.O. Box 1575, Tripoli, Libya,

P.O. Box 6451, Tripoli, Libya,

Benghazi Asphalt Plant Office, Benghazi, Libya.

BANQUE ARABE LIBYENNE BURKINABE POUR LE COMMERCE EXTERIEUR ET LE DEVELOPPEMENT,

1336 Avenue Nelson Mandela, Ouagadougou, Burkina Faso.

BANQUE ARABE LIBYENNE MALIENNE POUR LE COMMERCE EXTERIEUR ET LE DEVELOPPEMENT,

(a.k.a. BALIMA),

P.O. Box 2372, Bamako, Mali.

BANQUE ARABE LIBYENNE MAURITANIENNE POUR LE COMMERCE EXTERIEUR ET LE DEVELOPPEMENT,

(a.k.a. BALM),

Jamal Abdulnasser Street, P.O. Box 262, Nouakchott, Mauritania.

BANQUE ARABE LIBYENNE NIGERIENNE POUR LE COMMERCE EXTERIEUR ET LE DEVELOPPEMENT,P.O. Box 11363, Niamey, Niger.

BANQUE ARABE LIBYENNE TOGOLAISE DU COMMERCE EXTERIEUR,

(a.k.a. BALTEX),

P.O. Box 4874, Lome, Togo.

BANQUE ARABE TUNISO-LIBYENNE DE DEVELOPPEMENT ET DE COMMERCE EXTERIEUR,

(a.k.a. B.T.L),

25 Avenue Kheireddine Pacha, P.O. Box 102, 1002 Le Belvedere, Tunis, Tunisia.

BANQUE INTERCONTINENTALE ARABE,

67, Avenue Franklin Roosevelt, 75008 Paris, France.

BANQUE TCHADO ARABE LIBYENNE,

P.O. Box 104, N'Djamena, Chad.

CENTRAL BANK OF LIBYA,

Al-Fatah Street, P.O. Box 1103, Tripoli, Libya,

Benghazi, Libya,

Sebha, Libya.

CHEMPETROL,

(a.k.a. CHEMPETROL INTERNATIONAL),

145, Flat 9, Tower Road, Sliema, Malta.

CHEMPETROL INTERNATIONAL LTD.,

5th Floor, Quality Court, Chancery Lane, London WC2A 1HP, United Kingdom,

28 Lincoln's Inn Fields, London WC2A 3HH, United Kingdom.

COMPAGNIE ALGERO-LIBYENNE DE TRANSPORT MARITIME,

(a.k.a. CALTRAM),

21 Rue des Freres Bouadou, Birmandreis, Algiers, Algeria.

CORINTHIA GROUP OF COMPANIES,

Head Office, 22, Europa Centre, Floriana, Malta.

CORINTHIA PALACE HOTEL COMPANY LIMITED,

De Paula Avenue, Attard, Malta.

F.A. PETROLI S.P.A.,

Italy.

GENERAL ARAB AFRICAN COMPANY,

(a.k.a. GAAC),

(a.k.a. GAAE),

(a.k.a. GENERAL ARAB AFRICAN ENTERPRISE),

P.O. Box 8059, 219 Mohammed El Megarief Street, Tripoli, Libya,

Nasser Street, Benghazi, Libya.

GENERAL ESTABLISHMENT FOR PUBLICATION DISTRIBUTION & ADVERTISING,

P.O. Box 113, Beirut, Lebanon.

HOLBORN EUROPA RAFFINERIE GMBH,

(a.k.a. HER),

Rothenbaumchaussee 5, 4th Floor, D-2000 Hamburg 13, Germany,

Moorburger Strasse 16, D-2100 Hamburg 90, Germany.

HOLBORN EUROPEAN MARKETING COMPANY LIMITED,

(a.k.a. HEMCL),

Miranda Court No. 1, Ipirou Street, P.O. Box 897, Larnaca, Cyprus,

Hofplein 33, 3011 AJ Rotterdam, Netherlands.

HOLBORN INVESTMENT COMPANY LIMITED,

(a.k.a. HICL),

Miranda Court No. 1, Ipirou Street, P.O. Box 897, Larnaca, Cyprus.

INTERNATIONAL HOLDING COMPANY,

Luxembourg Ville, Luxembourg.

JAMAHIRIYA BANK,

(f.k.a. MASRAF AL-GUMHOURIA),

P.O. Box 3224, Martyr Street, Megarief, Tripoli, Libya,

Emhemed Megarief Street, Tripoli, Libya,

P.O. Box 1291, Benghazi, Libya,

(38 local branches in Libya).

JERMA PALACE HOTEL,

Maarsancala, Malta.

JOINT OIL

(a.k.a. JOINT EXPLORATION, EXPLOITATION AND PETROLEUM SERVICES COMPANY),

(a.k.a. JOINT OIL TUNISIA),

(a.k.a. LIBYAN-TUNISIAN EXPLORATION COMPANY),

(a.k.a. SOCIETE DE RECHERCHE ET D'EXPLOITATION COMMUNE ET DE SERVICE PETROLIERE),

B.P. 350 Houmt Souk 4180, Djerba Island, Tunisia,

7th of November offshore field, Gulf of Gabes,

Planning & Logistic Group complex, Port of Zarzis, Tunisia.

JOINT TURKISH LIBYAN AGRICULTURAL LIVESTOCK COMPANY,

Ankara, Turkey.

KAELBLE-GMEINDER GMBH,

(a.k.a. KAELBLE & GMEINDER COMPANY),

Maubacher Strasse 100, Postfach 13 20, W-7150 Backnang, Germany.

LAFI TRADE MALTA,

14517 Tower Road, Sliema, Malta.

LIBERIAN LIBYAN HOLDING COMPANY,

Monrovia, Liberia.

LIBYAN AGRICULTURAL BANK,

(a.k.a. THE AGRICULTURAL BANK),

(a.k.a. NATIONAL AGRICULTURAL BANK OF LIBYA),

52, Omar El Mokhtar Street, P.O. Box 1100, Tripoli, Libya,

(1 city branch and 27 branches in Libya).

LIBYAN ARAB AIRLINES,

(a.k.a. LAA),

Shahrah Haiti, P.O. Box 2555, Tripoli, Libya,

P.O. Box 360, Benghazi, Libya,

(Numerous branch offices and facilities abroad).

LIBYAN ARAB FOREIGN BANK

(a.k.a. LAFB),

Dat El Imad Complex Tower No. 2, P.O. Box 2542, Tripoli, Libya.

LIBYAN ARAB FOREIGN INVESTMENT COMPANY,

(a.k.a. LAFICO),

P.O. Box 4538, Maidan Masif El Baladi, Tripoli, Libya,

Athens, Greece,

Rome, Italy,

Malta.

LIBYAN ARAB MALTESE HOLDING COMPANY LIMITED,

(a.k.a. LAMHCO),

St. Mark House, Cappuchan Street, Floriana, Malta.

LIBYAN ARAB UGANDA BANK FOR FOREIGN TRADE AND DEVELOPMENT,

P.O. Box 9485, Kampala, Uganda.

LIBYAN ARAB UGANDA HOLDING COMPANY LIMITED,

(a.k.a. UGANDA LIBYAN HOLDING COMPANY LIMITED),

Kampala, Uganda.

LIBYAN-GREEK INVESTMENT COMPANY,

Athens, Greece.

MEDISAN LIMITED,

Rl 6A, Industrial Estate, Ricasoli, Malta.

MEDITERRANEAN AVIATION COMPANY, LIMITED,

(a.k.a. MEDAVIA),

Malta.

MEDITERRANEAN POWER ELECTRIC COMPANY LIMITED,

A 18B, Industrial Estate, Marsa, Malta

MEDITERRANEAN OIL SERVICES GMBH,

(a.k.a. MEDITERRANEAN SEA OIL SERVICES GMBH),

(a.k.a. MEDOIL),

P.O. Box 5601, Immermannstrasse 40, D-4000 Dusseldorf 1, Germany.

MENIL ENSTALT COMPANY,

Vaduz, Liechtenstein.

METROVIA,

Switzerland.

NATIONAL COMMERCIAL BANK S.A.L.,

P.O. Box 4647, Shuhada Square, Tripoli, Libya,

P.O. Box 166, Benghazi, Libya,

(22 branches in Libya).

NATIONAL COMPANY DRILLING CHEMICAL & EQUIPMENT,

(a.k.a. JOWFE),

NOC Building, Ashjara Square, Benghazi, Libya.

NATIONAL COMPANY FOR FIELD AND TERMINALS CATERING,

Airport Road, Km. 3, P.O. Box 491, Tripoli, Libya.

NATIONAL COMPANY FOR OILFIELD EQUIPMENT,

P.O. Box 8707, Tripoli, Libya.

NATIONAL DRILLING WORKOVER COMPANY,

(a.k.a. NATIONAL DRILLING COMPANY)

(a.k.a. NATIONAL DRILLING COMPANY (LIBYA)),

208 Omar El Mokhtar Street, P.O. Box 1454, Tripoli, Libya.

NATIONAL OIL CORPORATION,

(a.k.a. LIBYAN NATIONAL OIL CORPORATION),

(a.k.a. LNOC),

(a.k.a. NOC),

Bashir Saadawi Street, P.O. Box 2655, Tripoli, Libya,

P.O. Box 2978, Benghazi, Libya,

Dahra Gas Projects Office, Dahra Street, P.O. Box 12221, Dahra, Tripoli, Libya,

Petroleum Training and Qualifying Institute, Zawia Road, Km. 9, P.O. Box 6184, Tripoli, Libya,

Petroleum Research Centre, Al Nasser Street, P.O. Box 6431, Tripoli, Libya,

(Subsidiaries and joint ventures in Libya and worldwide).

NATIONAL PETROCHEMICALS COMPANY,

(a.k.a. NAPETCO),

(f.k.a. NATIONAL METHANOL COMPANY),

P.O. Box 20812, Marsa Brega, Libya,

P.O. Box 5324, Garden City, Benghazi, Libya,

Dusseldorf, Germany (Office Closed).

NEUTRON INTERNATIONAL,

Tripoli, Libya.

NORDDEUTSCHE OELLEITUNGSGESELLSCHAFT MBH,

(a.k.a. NDO)

(a.k.a. NORTH GERMAN OIL PIPELINE),

Moorburger Strasse 16, D-2000 Hamburg-Harburg 90, Germany,

Wilhelmshaven to Hamburg pipeline, Germany.

NORTH AFRICA COMMERCIAL BANK S.A.L.,

(f.k.a. ARAB LIBYAN TUNISIAN BANK S.A.L.),

P.O. Box 9575/11, 1st Floor, Piccadily Centre, Hamra Street, Beirut, Lebanon.

OIL ENERGY FRANCE,

France.

OIL ENERGY SPAIN,

(a.k.a. OILINVEST SPAIN),

(a.k.a. OILINVEST ESPANOLA),

Spain.

OILINVEST,

(a.k.a. FOREIGN PETROLEUM INVESTMENT CORPORATION),

(a.k.a. LIBYAN OIL INVESTMENTS INTERNATIONAL COMPANY),

(a.k.a. OIIC),

(a.k.a. OILINVEST INTERNATIONAL N.V.),

Netherlands Antilles,

Tripoli, Libya.

OILINVEST (NETHERLANDS) B.V.,

(a.k.a. OILINVEST HOLLAND B.V.),

Museumpln 11, 1071 DJ Amsterdam, Netherlands.

OS OILINVEST SERVICES A.G.,

Loewenstrasse 60, Zurich, Switzerland.

PAK-LIBYAN HOLDING COMPANY LTD.,

Karachi, Pakistan.

QUALITY SHOES COMPANY,

UB33, Industrial Estate, San Gwann, Malta.

RAFFINERIE DU SUD-OUEST,

(a.k.a. RSO),

(a.k.a. COLLOMBEY REFINERY),

Collombey, Valais, Switzerland.

RAS LANUF OIL AND GAS PROCESSING COMPANY, LTD.

(a.k.a. RASCO),

P.O. Box 75071, Tripoli, Libya,

Ras Lanuf Complex and Terminal, Ghout El Shaal, Libya,

Benghazi Complex, P.O. Box 1971, Gamel Abdul Nasser Street, Benghazi, Libya.

SAHARA BANK,

10 First September Street, P.O. Box 270, Tripoli, Libya,

(22 branches in Libya).

SIRM HOLDING S.R.L.,

Rome, Italy.

SIRTE OIL COMPANY,

(a.k.a. SIRTE OIL CO. FOR PRODUCTION, MANUFACTURING OF OIL & GAS, MARSA EL BREGA),

P.O. Box 385, Tripoli, Libya,

P.O. Box 2582, Tripoli, Libya,

Benghazi, Libya,

Sirte Field, Libya,

Marsa El Brega, Libya.

SOCIETE AGRICOLE TOGOLAISE ARABE LIBYENNE,

Lome, Togo.

SOCIETE ARABE LIBYENNE MALIENNE POUR L'AGRICULTURE ET L'ELEVAGE,

(a.k.a. SOLIMA),

Bamako, Mali.

SOCIETE ARABE LIBYENNE MAURITANIENNE DES RESSOURCES MARITIMES,

(a.k.a. SALIMAUREM),

Nouadhibou, Mauritania.

SOCIETE ARABE LIBYENNE-CENTRAFRICAINE D'IMPORT-EXPORT

Bangui, Central African Republic.

SOCIETE ARABE LIBYO-GUINEENNE POUR LE DEVELOPPEMENT AGRICOLE ET AGRO-INDUSTRIEL,

(a.k.a. SALGUIDIA),

Conakry, Guinea.

SOCIETE ARABE LIBYO-NIGERE POUR LE DEVELOPPEMENT ET LA COMMERCIALISATION DES PRODUITS AGRICOLES,

Niamey, Niger.

SOCIETE ARABE LIBYO-TUNISIENNE DE TRANSPORT MARITIME,

Tunis, Tunisia.

SOCIETE D'ECONOMIE MIXTE CENTRE AFRICAINE LIBYENNE DES PRODUITS AGRICOLES,

Bangui, Central African Republic.

SOCIETE LIBYENNE CENTRE AFRICAINE DES MINES,

Bangui, Central African Republic.

SOCIETE MIXTE RWANDO ARABE LIBYENNE POUR LE DEVELOPPEMENT ET LA COMMERCIALISATION DES PRODUITS AGRICOLES ET D'ELEVAGE,

Kigali, Rwanda.

SOCIETE MIXTE RWANDO-ARABE LIBYENNE DE PROMOTION HOTELIERE ET TOURISTIQUE AU RWANDA,

Kigali, Rwanda.

SOCIETE TOGOLAISE ARABE LIBYENNE DE PECHE,

Lome, Togo.

SWAN LAUNDRY AND DRY CLEANING COMPANY, LTD.,

55, Racecourse Street, Marsa, Malta.

SYRIAN LIBYAN COMPANY INDUSTRIAL & AGRICULTURAL INVESTMENTS,

(a.k.a. ARAB LIBYAN SYRIAN INDUSTRIAL & AGRICULTURAL INVESTMENT COMPANY),

(a.k.a. SYLICO),

9 Mazze, Autostrade, Damascus, Syria.

TAMOIL HUNGARIA,

Hungary.

TAMOIL ITALIA S.P.A.,

Piazzetta Bossi 3, I-20121 Milan, Italy,

Cremona Refinery, Italy.

TAMOIL PETROLI ITALIANA S.P.A.,

Milan, Italy,

(1,977 gasoline retail outlets in Italy).

TAMOIL SUISSE S.A.,

(a.k.a. TAMOIL SWITZERLAND),

(f.k.a. GATOIL SUISSE S.A.),

Zug, Switzerland,

Geneva, Switzerland,

(330 gasoline retail outlets in Switzerland),

(RSO refinery in Collombey).

TAMOIL TRADING LTD.,

Monte Carlo, Monaco,

Zurich, Switzerland,

One, St. Paul's Churchyard, London EC4M 8SH, United Kingdom.

TEKNICA PETROLEUM SERVICES LIMITED

Suite 1100, 736 Sixth Avenue S.W., Calgary, Alberta T2P 3T7, Canada.

TEKXEL LIMITED,

(a.k.a. JAWABY TECHNICAL SERVICES LIMITED),

London, United Kingdom.

TURKISH-LIBYAN JOINT MARITIME TRANSPORT STOCK COMPANY,

(a.k.a. TURLIB),

Kemeralti Caddesi 99, 80020 Karakoy, Istanbul, Turkey.

UMM AL-JAWABY OIL SERVICE COMPANY, LTD.,

33 Cavendish Square, London W1M 9HF, United Kingdom.

UMM AL-JAWABY PETROLEUM CO. S.A.L.,

P.O. Box 693, Tripoli, Libya,

Nafoora Field, Libya.

UMMA BANK S.A.L.,

1 Giaddet Omar Mokhtar, P.O. Box 685, Tripoli, Libya,

(31 branches throughout Libya).

VEBA OIL OPERATIONS B.V.,

(a.k.a. VEBA OIL LIBYA GMBH),

(a.k.a. VEBA OIL LIBYAN BRANCH),

(f.k.a. MOBIL OIL LIBYA, LTD.),

P.O. Box 2357, Tripoli, Libya,

Al Magharba Street, P.O. Box 690, Tripoli, Libya,

The Hague, Netherlands,

(Designation applies only to joint venture located in Libya and office located in the Netherlands).

VULCAN OIL S.P.A.,

Milano 2, Centro Direz. Pal. Canova, 20090 Segrate, Milan, Italy,

Delta Energy/ERG bunkering service, Genoa, Italy,

United Kingdom (offshore).

WAHA OIL COMPANY,

Inas Building, Omar El Mokhtar Street, Box 395, Tripoli, Libya,

P.O. Box 221, Benghazi, Libya,

Sidi Issa Street, P.O. Box 915, Tripoli, Libya,

P.O. Box 1075, Tripoli, Libya.

WAHDA BANK,

Jamal Abdulnasser Street, P.O. Box 452, Fadiel Abu Omar Square,

El-Berhka, Benghazi, Libya,

P.O. Box 1320, Benghazi, Libya,

P.O. Box 3427, Tripoli, Libya,

(37 branches throughout Libya).

ZUEITINA OIL COMPANY,

Zueitina Building ''A'', Sidi Issa, Dahra, P.O. Box 2134, Tripoli, Libya,

Mitchell Cotts Building, P.O. Box 2134, Tripoli, Libya,

Plant at Intisar Field A, Tripoli, Libya,

Gas Processing Plants, Tripoli, Libya.

(57 FR 29425, July 1, 1992)

31 CFR 550.901 Pt. 550, App. B

31 CFR 550.901 Appendix B to Part 550 -- Individuals Determined To Be Specially Designated Nationals of the Government of Libya

ABBOTT, John G.,

34 Grosvenor Street, London W1X 9FG, United Kingdom.

ABDULJAWAD, Muhammed I.,

(a.k.a. ABDUL JAWAD, Mohammed),

Tripoli, Libya.

AGHIL, Yousef I.,

Libya.

BUSHWESHA, Abdullah,

Libya.

CHARALAMBIDES, Kypros,

Cyprus.

EL BADRI, Abdullah Salim,

Tripoli, Libya.

EL GHRABLI, Abdudayem,

Libya.

EL HUWEIJ, Mohamed A.,

Tripoli, Libya.

FERJANI, A.S.A.,

Tripoli, Libya.

GHADAMSI, Bashir,

Italy.

LAYAS, Mohammed Hussein,

Tripoli, Libya.

MANA, Salem,

Libya,

Frankfurt, Germany.

NAAS, Mahmoud,

Libya.

PARADISSIOTIS, Christoforos Pavlou,

Larnaca, Cyprus,

34 Grosvenor Street, London W1X 9FG, United Kingdom.

RIECKE, Dr. Hans Guenter,

Hamburg, Germany.

SAUDI, Abdullah Ammar,

Manama, Bahrain.

SIALA, Mohamed Taher Hammuda,

Tripoli, Libya.

STAVROU, Stavros,

Cyprus.

UGUETO, Luis David (MOROS),

Cyprus.

YOUSEF, Mohamed T.,

Libya.

(57 FR 29427, July 1, 1992)

31 CFR 550.901 PART 555 -- SOVIET GOLD COIN REGULATIONS

31 CFR 550.901 Subpart A -- Relation of This Part to Other Laws and Regulations

Sec.

555.101 Relation of this part to other laws and regulations.

31 CFR 550.901 Subpart B -- Prohibitions

555.201 Prohibition on the importation of Soviet gold coins.

555.202 Effective date.

555.203 Evasions.

31 CFR 550.901 Subpart C -- General Definitions

555.301 Gold coins.

555.302 United States.

555.303 Importation.

555.304 Person.

555.305 Entity.

31 CFR 550.901 Subpart D -- Interpretations

555.401 Reference to amended sections.

555.402 Effect of amendment of sections of this chapter or of other orders, etc.

555.403 Gold coin jewelry.

31 CFR 550.901 Subpart E -- Licenses, Authorizations and Statements of Licensing Policy

555.501 Effect of subsequent license or authorization.

555.502 Exclusion from licenses and authorizations.

555.503 Authorization of importation of Soviet gold coins.

31 CFR 550.901 Subpart F -- Reports

555.601 Required records.

555.602 Reports to be furnished on demand.

31 CFR 550.901 Subpart G -- Penalties

555.701 Penalties.

31 CFR 550.901 Subpart H -- Procedures

555.801 Licensing.

555.802 Decisions.

555.803 Amendment, modification, or revocation.

555.804 Rulemaking.

555.805 Delegation by the Secretary of the Treasury.

555.806 Rules governing availability of information.

31 CFR 550.901 Subpart I -- Paperwork Reduction Act

555.901 Paperwork Reduction Act notice.

Authority: Pub. L. 99-440, 100 Stat. 1086; Pub. L. 99-631; E.O. 12571, 51 FR 39505, October 29, 1986; Pub. L. 102-182, 105 Stat. 1234.

Source: 51 FR 41916, Nov. 19, 1986, unless otherwise noted.

31 CFR 550.901 Subpart A -- Relation of This Part to Other Laws and Regulations

31 CFR 555.101 Relation of this part to other laws and regulations.

(a) This part is independent of the other parts of this chapter. No license or authorization contained in or issued pursuant to the other parts of this chapter authorizes any transaction prohibited by this part. In addition, licenses or authorizations contained in or issued pursuant to any other provision of law or regulation do not authorize any transaction prohibited by this part.

(b) No license or authorization contained in or issued pursuant to this part relieves the involved parties from complying with any other applicable laws or regulations.

31 CFR 555.101 Subpart B -- Prohibitions

31 CFR 555.201 Prohibition on the importation of Soviet gold coins.

No person, including a bank, may import into the United States any gold coin minted in the Union of Soviet Socialist Republics or offered for sale by the Government of the Union of Soviet Socialist Republics.

31 CFR 555.202 Effective date.

The effective date of the prohibition in 555.201 is 12:01 a.m. Eastern Daylight Time, October 2, 1986.

31 CFR 555.203 Evasions.

The regulations set forth in this part shall apply to any person who undertakes or causes to be undertaken any transaction or activity with the intent to evade section 510 or related provisions of the Comprehensive Anti-Apartheid Act of 1986, Pub. L. 99-440, or these regulations.

31 CFR 555.203 Subpart C -- General Definitions

31 CFR 555.301 Gold coins.

The term gold coins includes gold coins of all denominations and sizes, and gold coins that have been modified, as by addition of a clasp or loop, into items that may be worn as jewelry.

31 CFR 555.302 United States.

The term United States includes the States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and any territory or possession of the United States.

31 CFR 555.303 Importation.

The term importation means the bringing of any item within the jurisdictional limits of the United States with the intent to unlade it.

31 CFR 555.304 Person.

The term person means an individual or an entity.

31 CFR 555.305 Entity.

The term entity means a corporation, partnership, association, or other organization.

31 CFR 555.305 Subpart D -- Interpretations

31 CFR 555.401 Reference to amended sections.

Reference to any section of this chapter or to any regulation, ruling, order, instruction, direction or license issued pursuant to this chapter shall be deemed to refer to the same as currently amended unless otherwise so specified.

31 CFR 555.402 Effect of amendment of sections of this chapter or of other orders, etc.

Any modification of this chapter or of any regulation, ruling, order, instruction, direction or license issued by or under the direction of the Secretary of the Treasury shall not, unless otherwise specifically provided, be deemed to affect liability for any act performed or omitted, or any civil or criminal proceeding commenced prior to such modification, and all penalties, forfeitures, and liabilities under any such regulation, ruling, order, instruction, direction or license shall continue and may be enforced as if such modification had not been made.

31 CFR 555.403 Gold coin jewelry.

Section 555.201 prohibits the importation into the United States of gold coins that have been modified, as by the addition of a clasp or loop, into items that can be worn as jewelry. For example, importation of a necklace consisting of a Soviet gold coin mounted on a chain would not be authorized. Section 555.201 does not prohibit the reimportation into the United States of gold coin jewelry which was originally imported into the United States prior to October 2, 1986, provided that (a) the importer can demonstrate the date of the prior importation to the satisfaction of the Secretary of the Treasury or his delegate, and (b) the jewelry to be reimported is in small quantities and for personal use only.

31 CFR 555.403 Subpart E -- Licenses, Authorizations and Statements of Licensing Policy

31 CFR 555.501 Effect of subsequent license or authorization.

No license or other authorization contained in this chapter or otherwise issued by or under the authority of the Secretary of the Treasury shall be deemed to authorize or validate any transaction effected prior to the issuance thereof unless such license or authorization specifically so provides.

31 CFR 555.502 Exclusion from licenses and authorizations.

The Secretary of the Treasury reserves the right to exclude any person or property from the operation of any license or to restrict the applicability thereof to any person or property. Such action shall be binding upon all persons receiving actual or constructive notice thereof.

31 CFR 555.503 Authorization of importation of Soviet gold coins.

Notwithstanding the provisions of subpart B of this part, transactions occurring on or after December 4, 1991, otherwise prohibited by 555.201 and 555.203, are hereby authorized.

(57 FR 10291, Mar. 25, 1992)

31 CFR 555.503 Subpart F -- Reports

31 CFR 555.601 Required records.

Every person engaging in any act or transaction subject to this part shall keep a full, complete, and accurate record relative to any such act or transaction either before, during, or after the completion thereof, including any transaction effected pursuant to license or otherwise, and such records shall be available for examination for two years after the date of such transaction.

31 CFR 555.602 Reports to be furnished on demand.

Every person is required to furnish under oath, in the form of reports or otherwise, at any time as may be required, complete information relative to any act or transaction subject to this part, regardless of whether such transaction is effected pursuant to license or otherwise. Such reports may be required to include the production of any books of account, contracts, letters, and other papers connected with any transaction in the custody or control of the persons required to make such reports. Reports with respect to transactions may be required before, during or after such transactions are completed. The Secretary of the Treasury may, through any person or agency, conduct investigations, hold hearings, administer oaths, examine witnesses, receive evidence, take depositions, and require by subpoena the attendance and testimony of witnesses and the production of all books, papers, and documents relating to any matter under investigation.

(Approved by the Office of Management and Budget under control number 1505-0095)

31 CFR 555.602 Subpart G -- Penalties

31 CFR 555.701 Penalties.

(a) Any person that violates the provisions of section 510 of the Comprehensive Anti-Apartheid Act of 1986 (''the Act''), as implemented by 555.201 of this part, related provisions of the Act, or any regulation, license, or order issued to carry out such provisions shall be subject to a civil penalty of $50,000.

(b) Any person, other than an individual, that willfully violates the provisions of section 510 of the Act, as implemented by 555.201 of this part, related provisions of the Act, or any regulation, license, or order issued to carry out such provisions shall be fined not more than $1,000,000.

(c) Any individual who willfully violates the provisions of 510 of the Act, as implemented by 555.201 of this part, related provisions of the Act, or any regulation, license, or order issued to carry out such provisions shall be fined not more than $50,000, or imprisoned not more than 10 years, or both.

(d) Whenever a person commits a violation as to which a penalty under paragraphs (a), (b), or (c) of this section applies, (1) any officer, director, or employee of such person, or any natural person in control of such person who knowingly and willfully ordered, authorized, acquiesced in, or carried out the act or practice constituting the violation, and (2) any agent of such person who knowingly and willfully carried out such act or practice, shall be fined not more than $10,000, or imprisoned not more than 5 years, or both.

(e) A fine imposed under paragraph (b) of this section on an individual for an act or practice constituting a violation may not be paid, directly or indirectly, by the person committing the violation itself.

(f) Any individual who violates section 510 of the Act, as implemented by 555.201 of this part, related provisions of the Act, or any regulations issued to carry out such provisions shall be fined not more than five times the value of the gold coins involved.

(Comprehensive Anti-Apartheid Act of 1986, Pub. L. 99-440, secs. 510(b) and 603(b) and (c))

(g) Whoever, in any matter within the jurisdiction of any department or agency of the United States knowingly and willfully falsifies, conceals or covers up by any trick, scheme, or device a material fact, or makes any false, fictitious or fraudulent statements or representations, or makes or uses any false writing or document knowing the same to contain any false, fictitious or fraudulent statement or entry, shall be fined not more than $10,000, or such greater amount as set forth in 18 U.S.C. 3623, or imprisoned not more than five years, or both.

(18 U.S.C. 1001, 3623)

(h) Violations of this part may also be subject to relevant provisions of the Customs laws and other applicable laws.

31 CFR 555.701 Subpart H -- Procedures

31 CFR 555.801 Licensing.

(a) General licenses. General licenses may be issued authorizing under appropriate terms and conditions certain types of transactions which are subject to the prohibitions contained in subpart B of this part. All such licenses will be set forth in subpart E of this part. It is the policy of the Office of Foreign Assets Control not to grant applications for specific licenses authorizing transactions to which the provisions of an outstanding general license are applicable. Persons availing themselves of a general license may be required to file reports and statements in accordance with the instructions specified in that license.

(b) Specific licenses -- (1) General course of procedure. Transactions subject to the prohibitions contained in subpart B of this part that are not authorized by general license may be effected only under specific licenses. The specific licensing activities of the Office of Foreign Assets Control are performed by its Washington office and by the Foreign Assets Control Division of the Federal Reserve Bank of New York.

(2) Applications for specific licenses. Applications for specific licenses to engage in any transaction prohibited under this part are to be filed in duplicate with the Federal Reserve Bank of New York, Foreign Assets Control Division, 33 Liberty Street, New York, NY 10045. Any person having an interest in a transaction or proposed transaction may file an application for a license authorizing such transaction, and there is no requirement that any other person having an interest in such transaction shall or should join in making or filing such application.

(3) Information to be supplied. The applicant must supply all information specified by the respective forms and instructions. Such documents as may be relevant shall be attached to each application except that documents previously filed with the Office of Foreign Assets Control may, where appropriate, be incorporated by reference. Applicants may be required to furnish such further information as is deemed necessary to a proper determination by the Office of Foreign Assets Control. Failure to furnish necessary information will not be excused because of any provision of the law of the Union of Soviet Socialist Republics. If an applicant or other party in interest desires to present additional information or discuss or argue the appIication, he may do so at any time before or after decision. Arrangements for oral presentation should be made with the Office of Foreign Assets Control.

(4) Effect of denial. The denial of a license does not Preclude the reopening of an application or the filing of a further application. The applicant or any other party in interest may at any time request explanation of the reasons for a denial by correspondence or personal interview.

(5) Reports under specific licenses. As a condition of the issuance of any license, the licensee may be required to file reports with respect to the transaction covered by the license, in such form and at such times and places as may be prescribed in the license or otherwise.

(6) Issuance of license. Licenses will be issued by the Office of Foreign Assets Control acting on behalf of the Secretary of the Treasury or by the Federal Reserve Bank of New York, acting in accordance with such regulations, rulings, and instructions as the Secretary of the Treasury or the Office of Foreign Assets Control may from time to time prescribe, or licenses may be issued by the Secretary of the Treasury acting directly or through a designated person, agency, or instrumentality.

31 CFR 555.802 Decisions.

The Office of Foreign Assets Control or the Federal Reserve Bank of New York will advise each applicant of the decision respecting filed applications. The decision of the Office of Foreign Assets Control with respect to an application shall constitute a final agency action.

31 CFR 555.803 Amendment, modification, or revocation.

The provisions of this part and any rulings, licenses, authorizations, instructions, orders or forms issued hereunder may be amended, modified, or revoked at any time.

31 CFR 555.804 Rulemaking.

(a) All rules and other public documents are issued by the Secretary of the Treasury upon recommendation of the Director of the Office of Foreign Assets Control. Except to the extent that there is involved any military, naval, or foreign affairs function of the United States or any matter relating to agency management or personnel or to public property, loans, grants, benefits, or contracts, and except when interpretive rules, general statements of policy, or rules of agency organization, practice, or procedure are involved, or when notice and public procedure are impracticable, unnecessary, or contrary to the public interest, interested persons will be afforded an opportunity to participate in rulemaking through the submission of written data, views, or arguments, with oral presentation in the discretion of the Director. In general, rulemaking by the Office of Foreign Assets Control involves foreign affairs functions of the United States. Wherever possible, however, it is the practice to hold informal consultations with interested groups or persons before the issuance of any rule or other public document.

(b) Any interested person may petition the Director of the Office of Foreign Assets Control in writing for the issuance, amendment or revocation of any rule.

31 CFR 555.805 Delegation by the Secretary of the Treasury.

Any action that the Secretary of the Treasury is authorized to take with respect to the subject matter of this part may be taken by the Director of the Office of Foreign Assets Control, or by any other person to whom the Secretary of the Treasury has delegated authority so to act.

31 CFR 555.806 Rules governing availability of information.

(a) The records of the Office of Foreign Assets Control that are required by 5 U.S.C. 552 to be made available to the public shall be made available in accordance with the definitions, procedures, payment of fees, and other provisions of the regulations on the disclosure of records of the Office of the Secretary and of other bureaus and offices of the Department issued under 5 U.S.C. 552 and published as part 1 of this title 31 of the Code of Federal Regulations.

(b) Any form issued for use in connection with this part may be obtained in person from or by writing to the Office of Foreign Assets Control, Treasury Department, Washington, DC 20220, or the Foreign Assets Control Division, Federal Reserve Bank of New York, 33 Liberty Street, New York, NY 10045.

31 CFR 555.806 Subpart I -- Paperwork Reduction Act

31 CFR 555.901 Paperwork Reduction Act notice.

The information collection requirements in 555.601, 555.602, and 555.801 have been approved by the Office of Management and Budget and assigned control number 1505-0095.

(57 FR 10291, Mar. 25, 1992)

31 CFR 555.901 PART 560 -- IRANIAN TRANSACTIONS REGULATIONS

31 CFR 555.901 Pt. 560

31 CFR 555.901 Subpart A -- Relation of this Part to Other Laws and Regulations

Sec.

560.101 Relation of this part to other laws and regulations.

31 CFR 555.901 Subpart B -- Prohibitions

560.201 Prohibited importation of goods and services from Iran.

560.202 Prohibited related transactions.

560.203 Evasions.

31 CFR 555.901 Subpart C -- General Definitions

560.301 Effective date.

560.302 The Act.

560.303 Iran; Iranian.

560.304 Government of Iran.

560.305 Person.

560.306 Iranian origin goods and services.

560.307 United States.

560.308 Importation.

560.309 Publications.

560.310 License.

560.311 General license.

560.312 Specific license.

31 CFR 555.901 Subpart D -- Interpretations

560.401 Reference to amended sections.

560.402 Effect of amendment of sections of this part or of other orders, etc.

560.403 Exports from Iran prior to the effective date.

560.404 Certain offshore transactions, and other transactions related thereto.

560.405 Goods; technical data.

560.406 Transshipment through United States prohibited.

560.407 Importation from third countries; transshipment.

560.408 Importation into and release from a bonded warehouse or foreign trade zone.

560.409 Documentary evidence of the location of Iranian carpets located in third countries prior to the effective date.

31 CFR 555.901 Subpart E -- Licenses, Authorizations and Statements of Licensing Policy

560.501 Effect of license or authorization.

560.502 Exclusion from licenses and authorizations.

560.503 Importation pursuant to prior contractual agreements.

560.504 Iranian goods in third countries prior to effective date.

560.505 Certain services relating to participation in various events authorized.

560.506 Importation of certain gifts authorized.

560.507 Importation of accompanied baggage authorized.

560.508 Telecommunications and mail transactions authorized.

560.509 Certain services performed in Iran with respect to patents, trademarks and copyrights.

560.510 Certain goods and services relating to legal proceedings.

560.511 Importation of goods awarded by the Hague Tribunal.

560.512 Certain imports for diplomatic or official personnel authorized.

560.513 Importation of Iranian-origin oil.

560.514 Importation of household and personal effects authorized.

31 CFR 555.901 Subpart F -- Reports

560.601 Required records.

560.602 Reports to be furnished on demand.

31 CFR 555.901 Subpart G -- Penalties

560.701 Penalties.

560.702 Detention of shipments.

31 CFR 555.901 Subpart H -- Procedures

560.801 Licensing.

560.802 Decisions.

560.803 Amendment, modification, or revocation.

560.804 Rulemaking.

560.805 Delegation by the Secretary of the Treasury.

560.806 Customs procedures: goods specified in 560.201.

560.807 Rules governing availability of information.

31 CFR 555.901 Subpart I -- Paperwork Reduction Act

560.901 Paperwork Reduction Act Notice.

Authority: 22 U.S.C. 2349aa-9; E.O. 12613, 52 FR 41940, Oct. 30, 1987.

Source: 52 FR 44076, Nov. 17, 1987, unless otherwise noted.

31 CFR 555.901 Subpart A -- Relation of This Part to Other Laws and Regulations

31 CFR 560.101 Relation of this part to other laws and regulations.

(a) This part is separate from, and independent of, the other parts of this chapter, including part 535, ''Iranian Assets Control Regulations.'' No license or authorization contained in or issued pursuant to those other parts authorizes any transaction prohibited by this part. No license or authorization contained in or issued pursuant to any other provision of law or regulations authorizes any transaction prohibited by this part.

(b) No license or authorization contained in or issued pursuant to this part relieves the involved parties from complying with any other applicable laws or regulations.

31 CFR 560.101 Subpart B -- Prohibitions

31 CFR 560.201 Prohibited importation of goods and services from Iran.

Except as authorized by regulations, rulings, instructions, licenses, or otherwise, no goods or services of Iranian origin may be imported into the United States, with the following exceptions:

(a) Iranian-origin publications and materials imported for news publications or news broadcast dissemination;

(b) Petroleum products refined from Iranian crude oil in a third country; and

(c) Articles imported directly from Iran prior to the effective date.

31 CFR 560.202 Prohibited related transactions.

No person may order, buy, act as broker or facilitator for, receive, conceal, store, use, sell, loan, dispose of, transfer, transport, finance, forward, or otherwise service, in whole or in part, any goods or services subject to the prohibitions of this part, with knowledge or reason to know that a violation of this part, or any regulation, order, or license issued pursuant hereto or to section 505 of the Act, has occurred, is about to occur, or is intended to occur with respect to such goods or services.

31 CFR 560.203 Evasions.

Any transaction for the purpose of, or which has the effect of, evading or avoiding any of the prohibitions set forth in this subpart is hereby prohibited.

31 CFR 560.203 Subpart C -- General Definitions

31 CFR 560.301 Effective date.

The term effective date means 12:01 p.m., Eastern Standard Time, October 29, 1987.

31 CFR 560.302 The Act.

For purposes of this part, the term Act means the International Security and Development Cooperation Act of 1985 (Pub. L. 99-83).

31 CFR 560.303 Iran; Iranian.

The term Iran means the country of Iran and any Iranian territory, dependency, colony, protectorate, mandate, dominion, possession or place subject to the jurisdiction thereof, or any territory which, at the time of the relevant transaction, is controlled or occupied by the military, naval or police forces or other authorities of Iran. The term Iranian means pertaining to Iran as defined in this section.

31 CFR 560.304 Government of Iran.

(a) The Government of Iran includes:

(1) The state and the Government of Iran, as well as any political subdivision, agency, or instrumentality thereof;

(2) Any partnership, association, corporation, or other organization substantially owned or controlled by the foregoing;

(3) Any person to the extent that such person is, or has been, or to the extent that there is reasonable cause to believe that such person is, or has been, since the effective date acting or purporting to act directly or indirectly on behalf of any of the foregoing.

31 CFR 560.305 Person.

The term person means an individual, partnership, association, corporation or other organization.

31 CFR 560.306 Iranian origin goods and services.

The term goods or services of Iranian origin includes:

(a) Goods grown, produced, manufactured, extracted, or processed in Iran;

(b) Goods which have entered into Iranian commerce; and

(c) Services performed in Iran or by the Government of Iran, as defined in 560.304, where the benefit of such services will be received in the United States. Services of Iranian origin are not imported into the United States when such services are provided in the United States by an Iranian national resident in the United States. The term services of Iranian origin does not include:

(1) Diplomatic and consular services performed by or on behalf of the Government of Iran, or

(2) Diplomatic and consular services performed by or on behalf of the Government of the United States.

31 CFR 560.307 United States.

The term United States means the United States, including its territories and possessions.

31 CFR 560.308 Importation.

The term importation means the bringing of any goods into the United States, except that in the case of goods transported by vessel, ''importation'' shall mean the bringing of any goods into the United States with the intent to unlade it.

31 CFR 560.309 Publications.

The term publications includes, but is not limited to, books, newspapers, magazines, films, phonograph records, tape recordings, photographs, microfilm, microfiche, videotapes, and posters, as well as items described in the following:

(a) 15 CFR 399.1, Commodity Control List, Group 5, CCL No. 7599I: microfilm that reproduces the content of certain publications, and similar materials.

(b) 15 CFR 399.1, Commodity Control List, Group 9, CCL No. 7999I: certain publications and related materials.

31 CFR 560.310 License.

Except as otherwise specified, the term license means any license or authorization contained in or issued pursuant to this part.

31 CFR 560.311 General license.

The term general license means any license or authorization the terms of which are set forth in this part.

31 CFR 560.312 Specific license.

The term specific license means any license or authorization not set forth in this part but issued pursuant to this part in response to a written application.

31 CFR 560.312 Subpart D -- Interpretations

31 CFR 560.401 Reference to amended sections.

Reference to any section of this part or to any regulation, ruling, order, instruction, direction, or license issued pursuant to this part shall be deemed to refer to the same as currently amended unless otherwise so specified.

31 CFR 560.402 Effect of amendment of sections of this part or of other orders, etc.

Any amendment, modification, or revocation of any section of this part or of any order, regulation, ruling, instruction, or license issued by or under the direction of the Secretary of the Treasury pursuant to section 505 of the Act shall not, unless otherwise specifically provided, be deemed to affect any act done or omitted to be done, or any suit or proceeding had or commenced in any civil or criminal case prior to such amendment, modification, or revocation. All penalties, forfeitures, and liabilities under any such order, regulation, ruling, instruction, or license shall continue and may be enforced as if such amendment, modification, or revocation had not been made.

31 CFR 560.403 Exports from Iran prior to the effective date.

Goods may be imported pursuant to exception (c) in 560.201 if, prior to the effective date, the goods were loaded on board a vessel or aircraft in Iran or a third country ready for export to the United States, or were in transit from Iran or a third country for direct importation into the United States.

31 CFR 560.404 Certain offshore transactions and other transactions related thereto.

The prohibitions contained in 560.201 do not apply to the importation into locations outside the United States of goods or services of Iranian origin. The prohibitions also do not extend to payments or other transactions, wherever concluded, by any person relating to such transactions outside the United States, such as U.S. financial, service, or brokerage transactions involving offshore transactions with Iran. Payments relating to such non-prohibited transactions, and payments relating to the exceptions designated in 560.201, are not prohibited.

31 CFR 560.405 Goods; technical data.

The term ''goods'' shall include merchandise; articles; and technical data in tangible form including, but not limited to, a model, prototype, blueprint, drawing, operating manual, computer software, tape recording, microfiche, or other material in machine readable form. The term ''goods'' does not apply to oral transmission of technical data in the course of performance of services, telephone communications, lectures, seminars, or plant visits.

31 CFR 560.406 Transshipment through United States prohibited.

The prohibitions in 560.201 apply to the importation into the United States, for transshipment or transit, of goods of Iranian origin which are intended or destined for third countries.

31 CFR 560.407 Importation from third countries; transshipment.

(a) Importation into the United States from third countries of goods containing raw materials or components of Iranian origin is not prohibited if those raw materials or components have been incorporated into manufactured products or substantially transformed in a third country.

(b) Importation into the United States of goods of Iranian origin that have been transshipped through a third country without being incorporated into manufactured products or substantially transformed in a third country is prohibited.

31 CFR 560.408 Importation into and release from a bonded warehouse or foreign trade zone.

The prohibitions in 560.201 apply to importation into a bonded warehouse or a foreign trade zone of the United States. However, 560.201 does not prohibit the release from a bonded warehouse or a foreign trade zone of goods of Iranian origin imported into a bonded warehouse or a foreign trade zone prior to the effective date.

31 CFR 560.409 Documentary evidence of the location of Iranian carpets located in third countries prior to the effective date.

(a) Section 560.504 states that specific licenses will be issued to import non-fungible goods of Iranian origin, including carpets, upon submission of satisfactory documentary proof that the goods were located outside Iran prior to the effective date and that no financial benefit will accrue to Iran after the effective date. Section 560.504(c) identifies documents that may serve to satisfy the requirements of this section. Documents submitted must specifically identify the particular item to be imported.

(b) Because of the similarity of carpets of commercial grade, commercial documents which contain only a generic description of a carpet, such as size and style or region of manufacture (e.g., 2.05m. 1.05m., Tabriz) generally will be insufficient to satisfy the documentary requirement. Documents intended to prove that a particular carpet has been located outside of Iran since the effective date must identify the carpet and its location outside Iran since the effective date with sufficient particularity to eliminate the possibility of substitution by another carpet that would not be eligible for importation. Accordingly, transportation documents, invoices, inventory lists, or warehouse receipts that provide only general descriptions will not be considered to provide sufficient assurance that a particular carpet has been located outside of Iran since the effective date to justify issuance of a specific license for importation.

(56 FR 61373, Dec. 3, 1991)

31 CFR 560.409 Subpart E -- Licenses, Authorizations, and Statements of Licensing Policy

31 CFR 560.501 Effect of license or authorization.

(a) No license or other authorization contained in this part, or otherwise issued by or under the direction of the Secretary of the Treasury pursuant to section 505 of the Act, shall be deemed to authorize or validate any transaction effected prior to the issuance of the license, unless specifically provided in such license or other authorization.

(b) No regulation, ruling, instruction, or license authorizes a transaction prohibited under this part unless the regulation, ruling, instruction, or license is issued by the Treasury Department and specifically refers to this part. No regulation, ruling, instruction, or license referring to this part shall be deemed to authorize any transactions prohibited by any provision of this chapter unless the regulation, ruling, instruction or license specifically refers to such provision.

(c) Any regulation, ruling, instruction or license authorizing a transaction otherwise prohibited under this part has the effect of removing a prohibition or prohibitions in Subpart B from the transaction, but only to the extent specifically stated by its terms. Unless the regulation, ruling, instruction or license otherwise specifies, such an authorization does not create any right, duty, obligation, claim, or interest in, or with respect to, any property which would not otherwise exist under ordinary principles of law.

31 CFR 560.502 Exclusion from licenses and authorizations.

The Secretary of the Treasury reserves the right to exclude any person from the operation of any license, or from the privileges therein conferred, or to restrict the applicability thereof with respect to particular persons, transactions or property or classes thereof. Such action shall be binding upon all persons receiving actual or constructive notice thereof.

31 CFR 560.503 Importation pursuant to prior contractual agreements.

Specific licenses may be issued, on a case-by-case basis, authorizing the importation of goods of Iranian origin into the United States after the effective date and before January 1, 1988, if the importer furnishes the Office with a certification supported by written evidence establishing that --

(a) Payment for the goods was made, or payment was irrevocably committed to be made, prior to the effective date, or

(b) A written agreement to purchase the goods was entered into prior to the effective date; and

(c) Prior to the effective date, the goods were intended for importation into the United States.

31 CFR 560.504 Iranian goods in third countries prior to effective date.

(a) Specific licenses may be issued authorizing the importation of non-fungible goods of Iranian origin, such as carpets and artwork, provided the applicant submits satisfactory documentary proof that the goods are located outside Iran prior to the effective date and that no payment or other benefit has accrued or will accrue to Iran after the effective date. For purposes of this section, a payment or other benefit to Iran includes a payment or other economic benefit accruing to the Government of Iran or to a person or persons residing or located in Iran.

(b) Fungible goods of Iranian origin, such as oil and agricultural products, may qualify for importation after the effective date only under the provisions of 560.201 and 560.503.

(c) The type of documentation that would constitute satisfactory proof of the location of non-fungible goods outside Iran as of the effective date may vary depending upon the facts of a particular case. However, independent corroborating documentary evidence issued and certified by a disinterested party will be required. This might include contracts, insurance documents, shipping documents, warehouse receipts, and appropriate customs documents, accompanied by a certification of an insurance agent, warehouse agent, or other appropriate person, identifying with particularity the goods sought to be imported and attesting that the goods concerned were located outside Iran at a time prior to the effective date. In general, affidavits, statements, and other documents prepared by the applicant or another interested party will not, by themselves, constitute satisfactory proof.

Example: A Persian carpet stored in a warehouse in Europe since January 1986, and purchased by a U.S. resident in November 1987, may be licensed for importation into the United States if the importer provides, for example, (1) a warehouse receipt dated prior to the effective date, and a certification from the warehouse that the carpet sought to be imported is the same carpet that was in storage, identifying such characteristics as predominant colors and design by description or photograph; and (2) insurance documents dated prior to the effective date and containing sufficient information to identify the specific carpet insured in a location outside Iran.

31 CFR 560.505 Certain services relating to participation in various events authorized.

The importation of services of Iranian origin into the United States is authorized where an Iranian national enters the United States on a visa issued by the State Department for the purpose of participating in a public conference, performance, exhibition or similar event.

31 CFR 560.506 Importation of certain gifts authorized.

The importation into the United States is authorized for goods of Iranian origin sent as gifts to persons in the United States where the value of the gift is not more than $100.

31 CFR 560.507 Importation of accompanied baggage authorized.

Persons entering the United States directly or indirectly from Iran are authorized to import into the United States Iranian-origin accompanied baggage normally incident to travel. This authorization does not extend to Iranian-origin goods the value of which exceeds the personal exemption from Customs duty, currently at $400 per individual, or for Iranian-origin goods brought to the United States from third countries as accompanied baggage.

Example: Under this section, a U.S. resident returning from Iran may import personal effects acquired in Iran such as clothing and small purchases, provided their value is below the personal exemption amount, currently $400. A U.S. tourist returning from a vacation in Canada with a Persian carpet purchased there is not eligible for the general license in this section, as the individual would not be entering the United States directly or indirectly from Iran. In the latter case, the carpet could be imported only under a specific license issued pursuant to another section, such as 560.503 or 560.504.

31 CFR 560.508 Telecommunications and mail transactions authorized.

All transactions of common carriers incident to the receipt or transmission of telecommunications and mail between the United States and Iran are authorized. For purposes of this section, the term ''mail'' shall include parcels only to the extent the parcels contain goods excepted from these Regulations or otherwise eligible for importation from Iran under a general or specific license.

31 CFR 560.509 Certain services performed in Iran with respect to patents, trademarks and copyrights.

(a) All transactions incident to the following services rendered by a resident of Iran to or on behalf of a U.S. person are hereby authorized:

(1) The filing and prosecution of any application in Iran to obtain a patent, trademark, copyright or other form of intellectual property protection.

(2) The receipt of an Iranian patent, trademark, copyright or other form of intellectual property protection.

(3) The renewal of maintenance of a patent, trademark, copyright or other form of intellectual property protection in Iran.

(4) The filing and prosecution of opposition or infringement proceedings in Iran with respect to a patent, trademark, copyright or other form of intellectual property protection; or the entrance of a defense to any such proceedings.

(b) Nothing in this section affects obligations under any other provision of law.

31 CFR 560.510 Certain goods and services relating to legal proceedings.

All transactions are authorized pertaining to the importation of goods and services necessary for the conduct of legal proceedings, including administrative, judicial, and arbitral proceedings.

31 CFR 560.511 Importation of goods awarded by the Hague Tribunal.

(a) Specific licenses will be issued on a case-by-case basis to permit the importation of goods of Iranian origin in connection with awards, decisons, or orders of the Iran-United States Claims Tribunal in the Hague, established pursuant to the Algiers Accords of January 19, 1981.

(b) Specific licenses may be issued on a case-by-case basis to permit the importation of Iranian origin goods in connection with agreements settling claims brought before the Iran-United States Claims Tribunal.

31 CFR 560.512 Certain imports for diplomatic or official personnel authorized.

All transactions ordinarily incident to the importation of any goods or services into the United States from Iran are authorized if such imports are destined for official or personal use by personnel employed by Iranian missions to international organizations located in the United States, and such imports are not for resale.

31 CFR 560.513 Importation of Iranian-origin oil.

(a) Specific licenses will be issued on a case-by-case basis to permit the importation of Iranian-origin oil in connection with the resolution or settlement of cases before the Iran-United States Claims Tribunal in The Hague, established pursuant to the Algiers Accords of January 19, 1981, or where the proceeds are otherwise to be deposited in the Tribunal's Security Account.

(b) License applications submitted pursuant to this section must contain the importer's certification that the oil is of Iranian origin with all relevant supporting documentation, including specification of the production site at which the oil was extracted, and that the sale or transfer of the oil is by or for the account of the Government of Iran. Licenses will not be issued for importations of Iranian-origin oil which is not sold or transferred by or for the account of the Government of Iran. In cases where the oil is being imported either in whole or in part in resolution or settlement of a case pending before the Tribunal, applicants are required to identify the case and submit a copy of the settlement agreement and the Award on Agreed Terms issued by the Tribunal. In cases where any proceeds are generated, for the account of the Government of Iran from the importation of Iranian-origin oil, the importer must demonstrate that irrevocable arrangements are in place that will ensure that the proceeds will be deposited in the Security Account at The Hague.

(56 FR 11100, Mar. 15, 1991)

31 CFR 560.514 Importation of household and personal effects authorized.

(a) Except as provided in paragraph (b) of this section, the importation of Iranian-origin goods within the description of household and personal effects under the Harmonized Tariff Schedule of the United States (1991), subheadings 9804.00.05 and 9804.00.20, by persons arriving in the United States from a foreign country is authorized.

(b) This section authorizes the importation of no more than five Iranian-origin carpets, rugs, or similar articles such as tapestries or wallhangings. If a greater number of such items is to be imported, none may be imported without a specific license issued pursuant to this part.

(56 FR 61374, Dec. 3, 1991)

31 CFR 560.514 Subpart F -- Reports

31 CFR 560.601 Required records.

Every person engaging in any transaction subject to the provisons of this part shall keep a full and accurate record of each transaction in which he engages, regardless of whether such transaction is effected pursuant to license or otherwise, and such record shall be available for examination for at least two years after the date of such transaction.

31 CFR 560.602 Reports to be furnished on demand.

Every person is required to furnish under oath, in the form of reports or otherwise, from time to time and at any time as may be required, complete information relative to any transaction, regardless of whether such transaction is effected pursuant to license or otherwise, subject to the provisions of this part. Such reports may be required to include the production of any books of account, contracts, letters or other papers, connected with any such transaction or property, in the custody of control of the persons required to make such reports. Reports with respect to transactions may be required either before or after such transactions are completed. The Secretary of the Treasury may, through any person or agency, conduct investigations, hold hearings, administers oaths, examine witnesses, receive evidence, take depositions, and require by subpoena the attendance and testimony of witnesses and the production of all books, papers, and documents relating to any matter under investigation, regardless of whether any report has been required or filed in connection therewith.

31 CFR 560.602 Subpart G -- Penalties

31 CFR 560.701 Penalties.

(a) Attention is directed to 18 U.S.C. 545, which provides:

Whoever knowingly and willfully, with intent to defraud the United States, smuggles, or clandestinely introduces into the United States any merchandise which should have been invoiced, or makes out or passes, or attempts to pass, through the customhouse any false, forged, or fraudulent invoice, or other document or paper; or

Whoever fraudulently or knowingly imports or brings into the United States, any merchandise contrary to law, or receives, conceals, buys, sells, or in any manner facilitates the transportation, concealment, or sale of such merchandise after importation, knowing the same to have been imported or brought into the United States contrary to law --

Shall be fined not more that $10,000 or imprisoned not more than five years, or both.

Proof of defendant's possession of such goods, unless explained to the satisfaction of the jury, shall be deemed evidence sufficient to authorize conviction for violation of this section.

Merchandise introduced into the United States in violation of this section, or the value thereof, to be recovered from any person described in the first or second paragraph of this section, shall be forfeited to the United States.

(b) Attention is directed to 18 U.S.C. 1001, which provides:

Whoever, in any matter within the jurisdiction of any department or agency of the United States knowingly and willfully falsifies, conceals or covers up by any trick, scheme, or device a material fact, or makes any false, fictitious or fraudulent statements or representation or makes or uses any false writing or document knowing the same to contain any false, fictitious or fraudulent statement or entry, shall be fined not more than $10,000 or imprisoned not more than five years, or both.

(c) Attention is directed to 19 U.S.C. 1592, which provides, in part:

(a) Prohibition. --

(1) General rule. -- Without regard to whether the United States is or may be deprived of all or a portion of any lawful duty thereby, no person, by fraud, gross negligence, or negligence --

(A) may enter, introduce, or attempt to enter or introduce any merchandise into the commerce of the United States by means of --

(i) any document, written or oral statement, or act which is material and false, or

(ii) any omission which is material, or

(B) may aid or abet any other person to violate subparagraph (A) * * *.

(c) Maximum penalties. --

(1) Fraud. -- A fraudulent violation of subsection (a) of this section is punishable by a civil penalty in an amount not to exceed the domestic value of the merchandise.

(2) Gross negligence. -- A grossly negligent violation of subsection (a) of this section is punishable by a civil penalty in an amount not to exceed --

(A) the lesser of --

(i) the domestic value of the merchandise, or

(ii) four times the lawful duties of which the United States is or may be deprived, or

(B) if the violation did not affect the assessment of duties, 40 percent of the dutiable value of the merchandise.

(3) Negligence. -- A negligent violation of subsection (a) of this section is punishable by a civil penalty in an amount not to exceed --

(A) the lesser of --

(i) the domestic value of the merchandise, or

(ii) two times the lawful duties of which the United States is or may be deprived, or

(B) if the violation did not affect the assessment of duties, 20 percent of the dutiable value of the merchandise.

(d) Attention is also directed to 19 U.S.C. 1595a, which provides:

(a) * * * (E)very vessel, vehicle, animal, aircraft, or other thing used in, to aid in, or to facilitate, by obtaining information or in any other way, the importation, bringing in, unloading, landing, removal, concealing, harboring, or subsequent transportation of any article which is being or has been introduced, or attempted to be introduced, into the United States contrary to law, whether upon such vessel, vehicle, animal, aircraft or other thing or otherwise, may be seized and forfeited together with its tackle, apparel, furniture, harness, or equipment.

(b) Every person who directs, assists financially or otherwise, or is in any way concerned in any unlawful activity mentioned in the preceding subsection shall be liable to a penalty equal to the value of the article or articles introduced or attempted to be introduced.

(c) Any merchandise that is introduced or attempted to be introduced into the United States contrary to law (other than in violation of section 1592 of this title) may be seized and forfeited.

31 CFR 560.702 Detention of shipments.

Import shipments into the United States of goods of Iranian origin in violation of 560.201 shall be detained. No such import shall be permitted to proceed, except as specifically authorized by the Secretary of the Treasury. Such shipments shall be subject to licensing, penalties, or seizure and forfeiture action, under the Customs laws or other applicable provisions of law, depending on the circumstances.

31 CFR 560.702 Subpart H -- Procedures

31 CFR 560.801 Licensing.

(a) General licenses. General licenses have been issued authorizing under appropriate terms and conditions certain types of transactions which are subject to the prohibitions contained in subpart B of this part. All such licenses are set forth in subpart E of this part. It is the policy of the Office of Foreign Assets Control not to grant applications for specific licenses authorizing transactions to which the provisions of an outstanding general license are applicable. Persons availing themselves of certain general licenses may be required to file reports and statements in accordance with the instructions specified in those licenses.

(b) Specific licenses -- (1) General course of procedure. Transactions subject to the prohibitions contained in subpart B of this part which are not authorized by general license may be effected only under specific licenses.

(2) Applications for specific licenses. Applications for specific licenses to engage in any transactions prohibited by or pursuant to this part may be filed by letter with the Office of Foreign Assets Control. Any person having an interest in a transaction or proposed transaction may file an application for a license authorizing such transaction, but the applicant for a specific license is required to make full disclosure of all parties in interest to the transaction so that a decision on the application may be made with full knowledge of all relevant facts and so that the identity and location of the persons who know about the transaction may be easily ascertained in the event of inquiry.

(3) Information to be supplied. The applicant must supply all information specified by relevant instructions, and must fully disclose the names of all the parties who are concerned with or interested in the proposed transaction. If the application is filed by an agent, the agent must disclose the name of his principal(s). Such documents as may be relevant shall be attached to each application as a part of such application except that documents previously filed with the Office of Foreign Assets Control may, where appropriate, be incorporated by reference. Applicants may be required to furnish such further information as is deemed necessary to a proper determination by the Office of Foreign Assets Control. Any applicant or other party in interest desiring to present additional information concerning the application may do so at any time. Arrangements for oral presentation may be made with the Office of Foreign Assets Control.

(4) Effect of denial. The denial of a license does not preclude the reopening of an application or the filing of a further application. The applicant or any other party in interest may at any time request explanation of the reasons for a denial by correspondence or personal interview.

(5) Reports under specific licenses. As a condition upon the issuance of any license, the licensee may be required to file reports with respect to the transaction covered by the license, in such form and at such times and places as may be prescribed in the license or otherwise.

(6) Issuance of license. Licenses will be issued by the Office of Foreign Assets Control acting on behalf of the Secretary of the Treasury, acting in accordance with such regulations, rulings and instructions as the Secretary of the Treasury or the Office of Foreign Assets Control may from time to time prescribe, or licenses may be issued by the Secretary of the Treasury acting directly or through any specifically designated person, agency, or instrumentality.

(c) Address. License applications, reports, and inquiries should be addressed to the appropriate section or individual within the Office of Foreign Assets Control, or to its Director, at the following address: Office of Foreign Assets Control, U.S. Department of the Treasury, 1500 Pennsylvania Avenue, NW., Washington, DC 20220.

(52 FR 44076, Nov. 17, 1987, as amended at 57 FR 1390, Jan. 14, 1992)

31 CFR 560.802 Decisions.

The Office of Foreign Assets Control will advise each applicant of the decision respecting filed applications. The decision of the Office of Foreign Assets Control acting on behalf of the Secretary of the Treasury with respect to an application shall constitute final agency action.

(52 FR 44076, Nov. 17, 1987, as amended at 57 FR 1390, Jan. 14, 1992)

31 CFR 560.803 Amendment, modification, or revocation.

The provisions of this part and any rulings; licenses, whether general or specific; authorizations; instructions; orders; or forms issued hereunder may be amended, modified, or revoked at any time.

31 CFR 560.804 Rulemaking.

(a) All rules and other public documents are issued by the Secretary of the Treasury upon recommendation of the Director of the Office of Foreign Assets Control. In general, rulemaking by the Office of Foreign Assets Control involves foreign affairs functions of the United States, and for that reason is exempt from the requirements under the Administrative Procedure Act (5 U.S.C. 553) for notice of proposed rulemaking, opportunity for public comment, and delay in effective date. Wherever possible, however, it is the practice of the Office of Foreign Assets Control to receive written submissions or hold informal consultations with interested parties before the issuance of any rule or other public document.

(b) Any interested person may petition the Director of the Office of Foreign Assets Control in writing for the issuance, amendment, or repeal of any rule.

31 CFR 560.805 Delegation by the Secretary of the Treasury.

Any action which the Secretary of the Treasury is authorized to take pursuant to Executive Order No. 12613 or section 505 of the Act may be taken by the Director, Office of Foreign Assets Control, or by any other person to whom the Secretary of the Treasury has delegated authority so to act.

31 CFR 560.806 Customs procedures: Goods specified in 560.201.

(a) With respect to goods specified in 560.201, and not otherwise licensed or excepted from the scope of that section, appropriate Customs officers shall not accept or allow any:

(1) Entry for consumption or warehouse (including any appraisement entry, any entry of goods imported in the mails, regardless of value, and any informal entries);

(2) Entry for immediate exportation;

(3) Entry for transportation and exportation;

(4) Withdrawal from warehouse;

(5) Admission, entry, transfer or withdrawal to or from a foreign trade zone; or

(6) Manipulation or manufacture in a warehouse or in a foreign trade zone.

(b) Customs officers shall accept or allow the importation of Iranian-origin goods under the procedures listed in subsection (a) if:

(1) The merchandise was imported prior to 12:01 p.m., October 29, 1987,

(2) A specific license pursuant to this part is presented, or

(3) Instructions authorizing the transaction are received from the Office of Foreign Assets Control.

(c) Whenever a specific license is presented to an appropriate Customs officer in accordance with this section, one additional legible copy of the entry, withdrawal or other appropriate document with respect to the merchandise involved shall be filed with the appropriate Customs officers at the port where the transaction is to take place. Each copy of any such entry, withdrawal or other appropriate document, including the additional copy, shall bear plainly on its face the number of the license pursuant to which it is filed. The orignial copy of the specific license shall be presented to the appropriate Customs officers in respect of each such transaction and shall bear a notation in ink by the licensee or person presenting the license showing the description, quantity and value of the merchandise to be entered, withdrawn or otherwise dealt with. This notation shall be so placed and so written that there will exist no possibility of confusing it with anything placed on the license at the time of its issuance. If the license in fact authorizes the entry, withdrawal, or other transaction with regard to the merchandise, the appropriate Customs officer, or other authorized Customs employee, shall verify the notation by signing or initialing it after first assuring himself that it accurately describes the merchandise it purports to represent. The license shall thereafter be returned to the person presenting it and the additional copy of the entry, withdrawal or other appropriate document shall be forwarded by the appropriate Customs officer to the Office of Foreign Assets Control.

(d) If it is unclear whether an entry, withdrawal or other action affected by this section requires a specific Foreign Assets Control license, the appropriate Customs officer shall withhold any action thereon and shall advise such person to communicate directly with the Office of Foreign Assets Control, to request that instructions be sent to the Customs officer to authorize him to take action with regard thereto.

(52 FR 44076, Nov. 17, 1987, as amended at 57 FR 1390, 1391, Jan. 14, 1992)

31 CFR 560.807 Rules governing availability of information.

(a) The records of the Office of Foreign Assets Control required by the Freedom of Information Act (5 U.S.C. 552) to be made available to the public shall be made available in accordance with the definitions, procedures, requirements for payment of fees, and other provisions of the Regulations on the Disclosure of Records of the Departmental Offices and of other bureaus and offices of the Department of Treasury issued under 5 U.S.C. 552 and published in part 1 of this title.

(b) The records of the Office of Foreign Assets Control required by the Privacy Act (5 U.S.C. 552a) to be made available to an individual shall be made available in accordance with the definitions, procedures, requirements for payment of fees, and other provisions of the Regulations on Disclosure of Records of the Departmental Offices and of other bureaus and offices of the Department of the Treasury issued under 5 U.S.C. 552a and published in part 1 of this title.

(c) Any form used in connection with the Iranian Transaction Regulations may be obtained in person from or by writing to the Office of Foreign Assets Control, U.S. Department of the Treasury, 1500 Pennsylvania Avenue, NW., Washington, DC 20220.

(57 FR 1391, Jan. 14, 1992)

31 CFR 560.807 Subpart I -- Paperwork Reduction Act

31 CFR 560.901 Paperwork Reduction Act Notice.

The information collection requirements in 560.601, 560.602, and 560.801 have been approved by the Office of Management and Budget and assigned control number 1505-0106.

(53 FR 37556, Sept. 27, 1988)

31 CFR 560.901 PART 565 -- PANAMANIAN TRANSACTIONS REGULATIONS

31 CFR 560.901 Pt. 565

31 CFR 560.901 Subpart A -- Relation of this Part to Other Laws and Regulations

Sec.

565.101 Relation of this part to other laws and regulations.

31 CFR 560.901 Subpart B -- Prohibitions

565.201 Prohibited transactions involving property in which the Government of Panama has an interest; transactions with respect to securities.

565.202 Prohibited payments or transfers from the United States to the Noriega/Solis regime.

565.203 Prohibited payments or transfers to the Noriega/Solis regime by U.S. persons located in Panama and by certain juridical entities.

565.204 Effect of transfers violating the provisions of this part.

565.205 Holding of certain types of blocked property in interest-bearing accounts.

565.206 Evasions.

31 CFR 560.901 Subpart C -- General Definitions

565.301 Effective date.

565.302 Panama.

565.303 Government of Panama.

565.304 Noriega/Solis regime.

565.305 Entity.

565.306 United States.

565.307 United States person.

565.308 Transfer.

565.309 Property; property interests.

565.310 Credits.

565.311 Domestic financial institution.

565.312 Interest.

565.313 Blocked account; blocked property.

565.314 Interbank clearing payments.

565.315 License.

565.316 General license.

565.317 Specific license.

31 CFR 560.901 Subpart D -- Interpretations

565.401 Reference to amended sections.

565.402 Effect of amendment of sections of this part or of other orders, etc.

565.403 Termination and acquisition of an interest of the Government of Panama.

565.404 Payments to the Noriega/Solis regime prohibited; procedures for making payments to the Federal Reserve Bank of New York.

565.405 Blocking not applicable to U.S. persons outside the United States.

565.406 Indirect payments to the Noriega/Solis regime; payments by subsidiaries in third countries.

565.407 Clarification of interbank clearing payments.

565.408 Setoffs prohibited.

565.409 Payments in kind.

565.410 Transfers not prohibited with respect to the recognized Government of Panama.

31 CFR 560.901 Subpart E -- Licenses, Authorizations, and Statements of Licensing Policy

565.501 Effect of license or authorization.

565.502 Exclusion from licenses and authorizations.

565.503 Certain payments authorized.

565.504 Certain payments by individuals authorized.

565.505 Travel-related payments authorized.

565.506 Telecommunications and mail transactions authorized.

565.507 Payments and transfers related to purchase and sale of publications authorized.

565.508 Payment by the Noriega/Solis regime of obligations to persons within the United States.

565.509 Reserve accounts.

565.510 Authorization of new transactions concerning certain Panamanian property.

565.511 Transfer of funds credited to 565.509 blocked reserve accounts.

31 CFR 560.901 Subpart F -- Reports

565.601 Required records.

565.602 Reports to be furnished on demand.

31 CFR 560.901 Subpart G -- Penalties

565.701 Penalties.

565.702 Prepenalty notice.

565.703 Presentation responding to prepenalty notice.

565.704 Penalty notice.

565.705 Referral to United States Department of Justice.

31 CFR 560.901 Subpart H -- Procedures

565.801 Licensing.

565.802 Decisions.

565.803 Amendment, modification, or revocation.

565.804 Rulemaking.

565.805 Delegation by the Secretary of the Treasury.

565.806 Rules governing availability of information.

31 CFR 560.901 Subpart I -- Paperwork Reduction Act

565.901 Paperwork Reduction Act Notice.

Appendix A to Part 565 -- Panamanian Governmental Entities

Appendix B to Part 565 -- Persons and Organizations Acting on Behalf of the Noriega/Solis Regime

Authority: 50 U.S.C. 1701 et seq. , E.O. 12635, 53 FR 12134, Apr. 12, 1988.

Source: 53 FR 20566, June 3, 1988, unless otherwise noted.

31 CFR 560.901 Subpart A -- Relation of This Part to Other Laws and Regulations

31 CFR 565.101 Relation of this part to other laws and regulations.

(a) This part is separate from, and independent of, the other parts of this chapter. No license or authorization contained in or issued pursuant to those other parts authorizes any transaction prohibited by this part. No license or authorization contained in or issued pursuant to any other provision of law or regulations authorizes any transaction prohibited by this part.

(b) No license or authorization contained in or issued pursuant to this part relieves the involved parties from complying with any other applicable laws or regulations.

31 CFR 565.101 Subpart B -- Prohibitions

31 CFR 565.201 Prohibited transactions involving property in which the Government of Panama has an interest; transactions with respect to securities.

(a) Except as authorized by regulations, rulings, instructions, licenses, or otherwise, no property or interests in property of the Government of Panama that are in the United States, that hereafter come within the United States, or that are or hereafter come within the possession or control of persons located in the United States, may be transferred, paid, exported, withdrawn or otherwise dealt in.

(b) Unless authorized by a license expressly referring to this section, the acquisition, transfer (including the transfer on the books of any issuer or agent thereof), disposition, transportation, importation, exportation, or withdrawl of, or the endorsement or guaranty of signatures on, or otherwise dealing in any security (or evidence thereof) registered or inscribed in the name of the Government of Panama is prohibited irrespective of the fact that at any time (either prior to, on, or subsequent to 4:00 p.m. e.d.t., April 8, 1988) the registered or inscribed owner thereof may have, or appears to have, assigned, transferred, or otherwise disposed of any such security.

31 CFR 565.202 Prohibited payments or transfers from the United States to the Noriega/Solis regime.

Except as authorized by regulations, rulings, instructions, licenses, or otherwise, no direct or indirect payments or transfers may be made from the United States to the Noriega/Solis regime of funds, including currency, cash or coins of any nation, or other financial or investment assets or credits, except for interbank clearing payments. All transfers or payments to the Government of Panama shall be made into an account at the Federal Reserve Bank of New York, as provided in 565.404.

31 CFR 565.203 Prohibited payments or transfers to the Noriega/Solis regime by U.S. persons located in Panama and by certain juridical entities.

Except as authorized by regulations, rulings, instructions, licenses, or otherwise, no direct or indirect payments or transfers may be made to the Noreiga/Solis regime of funds, including currency, cash or coins of any nation, or of other financial or investment assets or credits, by any United States person located in the territory of Panama, or by any person organized under the laws of Panama and owned or controlled by a United States person, except for interbank clearing payments. All transfers or payments to the Government of Panama by such persons shall be made into an account at the Federal Reserve Bank of New York, as provided in 565.404.

31 CFR 565.204 Effect of transfers violating the provisions of this part.

(a) Any transfer after 4:00 p.m. e.d.t., April 8, 1988, which is in violation of any provision of this part or of any regulation, ruling, instruction, license, or other direction or authorization hereunder and involves any property in which the Government of Panama has or has had an interest since such date, is null and void and shall not be the basis for the assertion or recognition of any interest in or right, remedy, power or privilege with respect to such property.

(b) No transfer before 4:00 p.m. e.d.t., April 8, 1988, shall be the basis for the assertion or recognition of any right, remedy, power, or privilege with respect to, or interest in, any property in which the Government of Panama has an interest, or has had an interest since such date, unless the person with whom such property is held or maintained had written notice of the transfer or by any written evidence had recognized such transfer prior to such date.

(c) Unless otherwise provided, an appropriate license or other authorization issued by or pursuant to the direction or authorization of the Director of the Office of Foreign Assets Control before, during, or after a transfer shall validate such transfer or render it enforceable to the same extent as it would be valid or enforceable but for the provisions of the International Emergency Economic Powers Act and this part, and any ruling, order, regulation, direction or instruction issued hereunder.

(d) Transfers of property which otherwise would be null and void or unenforceable, by virtue of the provisions of this section, shall not be deemed to be null and void or unenforceable pursuant to such provisions, as to any person with whom such property was held or maintained (and as to such person only) in cases in which such person is able to establish to the satsifaction of the Director of the Office of Foreign Assets Control each of the following:

(1) Such transfer did not represent a willful violation of the provisions of this part by the person with whom such property was held or maintained;

(2) The person with whom such property was held or maintained did not have reasonable cause to know or suspect, in view of all the facts and circumstances known or available to such person, that such transfer required a license or authorization by or pursuant to this part and was not so licensed or authorized, or if a license or authorization did purport to cover the transfer, that such license or authorization had been obtained by misrepresentation of a third party or the withholding of material facts or was otherwise fraudulently obtained; and

(3) Promptly upon discovery that:

(i) Such transfer was in violation of the provisions of this part or any regulation, ruling, instruction, license or other direction or authorization hereunder; or

(ii) Such transfer was not licensed or authorized by the Director of the Office of Foreign Assets Control; or

(iii) If a license did purport to cover the transfer, such license had been obtained by misrepresentation of a third party or the withholding of material facts or was otherwise fraudulently obtained; the person with whom such property was held or maintained must file with the Treasury Department, Washington, DC, a report setting forth in full the circumstances relating to such transfer.

The filing of a report in accordance with the provisions of this paragraph shall not be deemed to be compliance or evidence of compliance with paragraphs (d)(1) and (2) of this section.

(e) Unless licensed or authorized pursuant to this part, any attachment, judgment, decree, lien, execution, garnishment or other judicial process is null and void with respect to any property in which on or since 4:00 p.m. e.d.t., April 8, 1988, there existed an interest of the Government of Panama.

31 CFR 565.205 Holding of certain types of blocked property in interest-bearing accounts.

(a) Any person currently holding property subject to 565.201 which, as of the effective date of this section, June 3, 1988, is not being held in an interest-bearing account, or otherwise invested in a manner authorized by the Office of Foreign Assets Control, shall transfer such property to, or hold such property or cause such property to be held in, an interest-bearing account in a domestic financial institution as of the effective date of this section, unless otherwise authorized or directed by the Office of Foreign Assets Control. This requirement shall apply to currency, bank deposits and accounts, and any proceeds resulting from the sale of tangible property.

(b) For purposes of this section, the term ''interest-bearing account'' means a blocked account in a domestic financial institution earning interest at rates that are commercially reasonable for the amount of funds in the account. The funds may not be invested or held in instruments the maturity of which exceeds 30 days. The term ''domestic financial institution'' is defined in 565.311.

(c) This section does not apply to blocked tangible, non-financial property, such as chattels, nor does it create an affirmative obligation on the part of the holder of such blocked tangible property to sell the property and put the proceeds in a blocked account. However, the Office of Foreign Assets Control may issue licenses permitting or directing sales of tangible property in appropriate cases.

31 CFR 565.206 Evasions.

Any transaction for the purpose of, or which has the effect of, evading or avoiding any of the prohibitions set forth in this subpart is hereby prohibited.

31 CFR 565.206 Subpart C -- General Definitions

31 CFR 565.301 Effective date.

The term effective date means 4:00 p.m., Eastern Daylight Time, April 8, 1988, except with respect to 565.205, which is effective June 3, 1988.

31 CFR 565.302 Panama.

The term Panama means Panama and all areas under the jurisdiction or authority thereof.

31 CFR 565.303 Government of Panama.

The term Government of Panama includes the state and the Government of Panama, as well as any political subdivision, agency, or instrumentality thereof, including the Banco Nacional de Panama and the Caja de Ahorros. See appendix A to this part for a list of additional Government of Panama entities.

31 CFR 565.304 Noriega/Solis regime.

(a) The term Noriega/Solis regime includes:

(1) Manuel Antonio Noriega, Manuel Solis Palma, and any agencies, instrumentalities or entities purporting to act on behalf or under the asserted authority of either or both;

(2) Any partnership, association, corporation, or other organization substantially owned or controlled by the foregoing;

(3) Any person to the extent that such person is, or has been, or to the extent that there is reasonable cause to believe that such person is, or has been, since the effective date acting or purporting to act directly or indirectly on behalf of any of the foregoing; or

(4) Any other person or organization determined by the Director of the Office of Foreign Assets Control to be included within paragraph (a)(3) of this section. Such determinations shall be published from time to time in an appendix B to this part, but shall be binding prior to such publication upon any person receiving actual notice thereof.

(b) A partnership, association, corporation, or other organization shall not be deemed to fall within the definition of the ''Noriega/Solis regime'' solely by reason of being located in, organized under the laws of, or having its principal place of business in, Panama.

(53 FR 20566, June 3, 1988, as amended at 54 FR 36272, Aug. 31, 1989)

31 CFR 565.305 Entity.

The term entity includes a corporation, partnership, association, or other organization.

31 CFR 565.306 United States.

The term United States means the United States, its territories and possessions, and all areas under the jurisdiction or authority thereof.

31 CFR 565.307 United States person.

The term United States person means any United States citizen; permanent resident alien; juridical person organized under the laws of the United States, excluding overseas branches except those operating in Panama; or any person in the United States.

31 CFR 565.308 Transfer.

The term transfer shall mean any actual or purported act or transaction, whether or not evidenced by writing, and whether or not done or performed within the United States, the purpose, intent or effect of which is to create, surrender, release, transfer, or alter, directly or indirectly, any right, remedy, power, privilege, or interest with respect to any property and, without limitation upon the foregoing, shall include the making, execution, or delivery of any assignment, power, conveyance, check, declaration, deed, deed of trust, power of attorney, power of appointment, bill of sale, mortgage, receipt, agreement, contract, certificate, gift, sale, affidavit, or statement; the appointment of any agent, trustee, or fiduciary; the creation or transfer of any lien; the issuance, docketing, filing, or the levy of or under any judgment, decree, attachment, injunction, execution, or other judicial or administrative process or order, or the service of any garnishment; the acquisition of any interest of any nature whatsoever by reason of a judgment or decree of any foreign country; the fulfillment of any condition, or the exercise of any power of appointment, power of attorney, or other power.

31 CFR 565.309 Property; property interests.

The term property and property interest or property interests shall include, but not by way of limitation, money, checks, drafts, bullion, bank deposits, savings accounts, debts, indebtedness, obligations, notes, debentures, stocks, bonds, coupons, and other financial securities, bankers' acceptances, mortgages, pledges, liens or other rights in the nature of security, warehouse receipts, bills of lading, trust receipts, bills of sale, any other evidences of title, owners or indebtedness, letters of credit and any documents relating to any rights or obligations thereunder, powers of attorney, goods, wares, merchandise, chattels, stocks on hand, ships, goods or ships, real estate mortgages, deeds of trust, vendors' sales agreements, land contracts, real estate and any interest therein, leaseholds, ground rents, options, negotiable instruments, trade acceptances, royalties, book accounts, accounts payable, judgments, patents, trademarks or copyrights, insurance policies, safe deposit boxes and their contents, annuities, pooling agreements, contracts of any nature whatsoever, and any other property, real, personal, or mixed, tangible or intangible, or interest or interests therein, present, future or contingent.

31 CFR 565.310 Credits.

The term credits means any transfer or extension of funds or credit on the basis of an obligation to repay, or any assumption or guarantee of the obligation of another to repay an extension of funds or credit. The term ''credits'' includes, but is not limited to: Overdrafts; purchases of debt securities issued by the Government of Panama after April 8, 1988; sales of financial assets subject to an agreement to repurchase; renewals or refinancings whereby funds or credits are transferred to or extended to the Governor of Panama; and draw-downs on existing lines of credit.

31 CFR 565.311 Domestic financial institution.

The term domestic financial institution means any of the following:

(a) An insured bank as defined in section 3 of the Federal Deposit Insurance Act;

(b) An insured institution as defined in section 408(a) of the National Housing Act;

(c) An insured credit union as defined in section 101 of the Federal Credit Union Act; or

(d) Any other institution that is carrying on banking activities and that is chartered by a federal or state banking authority.

31 CFR 565.312 Interest.

Except as otherwise provided in this part, the term interest when used with respect to property (e.g., ''an interest in property'') shall mean an interest of any nature whatsoever, direct or indirect.

31 CFR 565.313 Blocked account; blocked property.

The terms blocked account and blocked property shall mean any account or property in which the Government of Panama has an interest, with respect to which payments, transfers or withdrawals or other dealings may not be made or effected except pursuant to an authorization or license authorizing such action.

31 CFR 565.314 Interbank clearing payments.

The term interbank clearing payments means payments of funds by a bank to another bank, where such payments are effected by the bank or banks over a funds transfer system such as FedWire, CHIPS, SWIFT, or the like, or across an individual bank's books, where none of the banks involved has any actual knowledge that the original remitter of any funds to the Noriega/Solis regime is located in the United States and is other than a bank acting on its own behalf. See 565.407 for further clarification.

31 CFR 565.315 License.

Except as otherwise specified, the term license means any license or authorization contained in or issued pursuant to this part.

31 CFR 565.316 General license.

The term general license means any license or authorization the terms of which are set forth in this part.

31 CFR 565.317 Specific license.

The term specific license means any license or authorization not set forth in this part but issued pursuant to this part in response to a written application.

31 CFR 565.317 Subpart D -- Interpretations

31 CFR 565.401 Reference to amended sections.

Reference to any section of this part or to any regulation, ruling, order, instruction, direction, or license issued pursuant to this part shall be deemed to refer to the same as currently amended unless otherwise so specified.

31 CFR 565.402 Effect of amendment of sections of this part or of other orders, etc.

Any amendment, modification, or revocation of any section of this part or of any order, regulation, ruling, instruction, or license issued by or under the direction of the Director of the Office of Foreign Assets Control shall not, unless otherwise specifically provided, be deemed to affect any act done or omitted to be done, or any suit or proceeding had or commenced in any civil or criminal case prior to such amendment, modification, or revocation. All penalties, forfeitures, and liabilities under any such order, regulation, ruling, instruction, or license shall continue and may be enforced as if such amendment, modification, or revocation had not been made.

31 CFR 565.403 Termination and acquisition of an interest of the Government of Panama.

(a) Whenever a transaction licensed or authorized by or pursuant to this part results in the transfer of property (including any property interest) away from the Government of Panama, such property shall no longer be deemed to be property in which the Government of Panama has or has had an interest unless there exists in the property another such interest, the transfer of which has not been effected pursuant to license or other authorization.

(b) Unless otherwise specifically provided in a license or authorization issued pursuant to this part, if property (including any property interest) is transferred to the Government of Panama, such property shall be deemed to be property in which there exists an interest of the Government of Panama.

31 CFR 565.404 Payments to the Noriega/Solis Regime prohibited; procedures for making payments to the Federal Reserve Bank of New York.

The prohibitions on payments and transfers to the Noriega/Solis regime in 565.202 and 565.203 apply to payments and transfers of any kind whatsoever, including payment of debt obligations, fees, taxes, and royalties owed to the Government of Panama, and also including payment or transfer of dividends, interest payments, and other periodic payments. Payments or transfers owed to the Government of Panama shall be made to ''Government of Panama Account No. 2,'' established on the books of the Federal Reserve Bank of New York pursuant to 565.202 and 565.203.

(a) Payments or transfers of funds into Government of Panama Account No. 2 over FedWire should be made using Typecode 15. The transfer instructions should name ''Government of Panama Account No. 2'' and refer to routing number 021001208.

(b) Payments or transfers of funds to Government of Panama Account No. 2 at the Federal Reserve Bank of New York other than by FedWire (e.g., where FedWire is not available, as in Panama) shall be made payable to Government of Panama Account No. 2 and sent, along with all required or appropriate documents, to the following lockbox address: Republic of Panama, Box No. 0225, Washington, DC 20055.

31 CFR 565.405 Blocking not applicable to U.S. persons outside the United States.

For purposes of the prohibitions set forth in 565.201 of this part, the term ''persons located in the United States'' is intended to express a geographical limitation, and does not include U.S. persons located outside the United States, their branches located outside the United States, or juridical entities located outside the United States, even though owned or controlled by U.S. persons.

31 CFR 565.406 Indirect payments to the Noriega/Solis regime; payments by subsidiaries in third countries.

The prohibitions in 565.202 and 565.203 on payments or transfers to the Noriega/Solis regime apply to indirect payments (including reimbursement of a non-U.S. person for payment) made after 4:00 p.m. E.D.T., April 8, 1988. Unlicensed payments or transfers made to the Noriega/Solis regime from U.S. subsidiaries or branches in third countries shall, where such payments or transfers are normally made from the United States or Panama, be considered an evasion of the prohibitions set forth in 565.202 and 565.203. Payments or transfers routinely made from these entities, however, are not prohibited.

31 CFR 565.407 Clarification of interbank clearing payments.

(a) The authorization for interbank clearing payments contained in 565.202 and 565.203 includes payments by one bank to another to settle on a net basis other payments transactions cleared by those banks, including check exchanges.

(b) Notwithstanding instructions received from their correspondents, banks located in the United States are not authorized to remit the proceeds of documentary collections or letters of credit to accounts maintained at Banco Nacional de Panama in Panama; such remittances are not included within the meaning of ''interbank clearing payments.'' Banks located in the United States should seek alternate payment instructions from their correspondents.

31 CFR 565.408 Setoffs prohibited.

(a) A setoff against a blocked account, whether by a bank or other U.S. person, is a prohibited transfer under 565.202 and 565.203 if effected after 4:00 p.m., e.d.t., April 8, 1988.

(b) Except as licensed or otherwise authorized, a setoff as a method of settling payments to the Noriega/Solis regime, as by netting or cancelling a debt or other obligation, is prohibited.

31 CFR 565.409 Payments in kind.

Payments in kind made to the Noriega/Solis regime in lieu of a payment or transfer of funds, which term includes currency, cash or coins of any nation, as well as other financial or investment assets or credits, shall be considered an evasion of the prohibitions in subpart B.

31 CFR 565.410 Transfers not prohibited with respect to the recognized Government of Panama.

All transfers or payments to the Government of Panama for obligations that first arise on or after December 20, 1989, may be made to the recognized Government of Panama, including, without limitation, all Panamanian governmental entities listed in appendix A (with the exception of Marinexam, S.A. and Transit, S.A.): (a) From the United States; and (b) by any United States person located in the territory of Panama, or by any person organized under the laws of Panama and owned or controlled by a United States person.

(55 FR 3561, Feb. 1, 1990)

31 CFR 565.410 Subpart E -- Licenses, Authorizations, and Statements of Licensing Policy

31 CFR 565.501 Effect of license or authorization.

(a) No license or other authorization contained in this part, or otherwise issued by or under the direction of the Director of the Office of Foreign Assets Control, shall be deemed to authorize or validate any transaction effected prior to the issuance of the license, unless specifically provided in such license or other authorization.

(b) No regulation, ruling, instruction, or license authorizes any transaction prohibited under this part unless the regulation, ruling, instruction, or license is issued by the Office of Foreign Assets Control and specifically refers to this part. No regulation, ruling, instruction, or license referring to this part shall be deemed to authorize any transaction prohibited by any provision of this chapter unless the regulation, ruling, instruction or license specifically refers to such provision.

(c) Any regulation, ruling, instruction or license authorizing any transaction otherwise prohibited under this part has the effect of removing a prohibition or prohibitions in subpart B from the transaction, but only to the extent specifically stated by its terms. Unless the regulation, ruling, instruction or license otherwise specifies, such an authorization does not create any right, duty, obligation, claim, or interest in, or with respect to, any property which would not otherwise exist under ordinary principles of law.

31 CFR 565.502 Exclusion from licenses and authorizations.

The Secretary of the Treasury reserves the right to exclude any person from the operation of any license, or from the privileges therein conferred, or to restrict the applicability thereof with respect to particular persons, transactions or property or classes thereof. Such action shall be binding upon all persons receiving actual or constructive notice thereof.

31 CFR 565.503 Certain payments authorized.

(a) All payments and transfers necessary to pay costs of utilities in Panama are authorized. Utilities shall include electricity, water, and similar municipal services such as trash collection and police and fire protection. The authorization set forth in this paragraph shall not be construed to extend to payments to the Noriega/Solis regime by the United States Government or any agency or instrumentality thereof, where such payments would be inconsistent with U.S. treaty obligations to Panama.

(b) All payments made in connection with social security taxes and fees are authorized.

(c) All payments of indirect taxes (i.e., those normally collected in the purchase of goods and services, such as sales and excise taxes) are authorized. This does not authorize the remittance of such payments, either directly or indirectly, by U.S. persons or juridical entities owned or controlled by U.S. persons which collect such taxes for or on behalf of the Government of Panama.

(d) All payments of administrative fees and taxes paid in connection with basic business activity are authorized, including but not limited to: Commercial license fees, corporate registration fees and taxes, court pleading fees, creation of rights fees, copyright fees and taxes, custodial fees and services, document processing fees, fiscal stamps, health certificates, immigration fees, import duties and other import-related expenses, inspection services, international banking licenses, landing fees, legal fees, licensing fees, litigation costs, mineral extraction fees, municipal taxes, new product fees, notaries' fees, occupational risk insurance fees, parking meters, passport fees, patent fees and taxes, plant inspection fees, port fees, quarantine fees, radio and television registration fees, recordation fees, stamp taxes, towage fees, transportation tolls, trademark fees and taxes, vehicle registration fees, visa fees, warehouse storage fees, and work permits.

(e) This section does not authorize payment of income taxes, rental fees, or direct taxes and fees (e.g., export taxes and fees), not otherwise authorized.

(53 FR 20566, June 3, 1988, as amended at 53 FR 23621, June 23, 1988; 53 FR 32222, Aug. 24, 1988)

31 CFR 565.504 Certain payments by individuals authorized.

All payments and transfers by individuals are authorized, except income taxes. This paragraph does not authorize payments by an individual made directly or indirectly on behalf of a juridical entity.

(53 FR 20566, June 3, 1988, as amended at 53 FR 23621, June 23, 1988)

31 CFR 565.505 Travel-related payments authorized.

All travel-related payments and transfers are authorized by individuals, including airport departure fees and taxes on tickets, and by United States persons, or by persons organized under the laws of Panama and owned or controlled by a United States person, in connection with the provision of travel services to individuals (e.g., landing fees and fuel). This section does not authorize the payment of income taxes that are normally withheld for individuals and paid by other persons.

31 CFR 565.506 Telecommunications and mail transactions authorized.

All payments and transfers for the purpose of securing postal or telecommunications services are authorized, including payments and transfers among common carriers for the purpose of securing such services, and payments and transfers for telephone, telex, telegraphic, satellite, and facsimile transmission services.

31 CFR 565.507 Payments and transfers related to purchase and sale of publications authorized.

All payments and transfers related to the purchase in Panama or the purchase or sale of publications involving Panama and the United States are authorized. For purposes of this part, publications include books, newspapers, magazines, films, phonograph records, tape recordings, photographs, microfilm, microfiche, and posters, including items described in the following:

(a) 15 CFR 399.1, Control List, Group 5, CL No. 7599I: microfilm that reproduces the content of certain publications, and similar materials.

(b) 15 CFR 399.1, Control List, Group 9, CL No. 7999I: certain publications and related materials.

31 CFR 565.508 Payment by the Noriega/Solis regime of obligations to persons within the United States.

(a) The transfer of funds by the Noriega/Solis regime after 4:00 p.m. e.d.t., April 8, 1988, by, through, or to any domestic financial institution or other person within the United States solely for payment of obligations to persons within the United States is authorized, provided that there is no debit to a blocked account. Property is not blocked by virtue of being transferred or received pursuant to this section.

(b) A person receiving payment under this section may distribute all or part of that payment to anyone, provided that any such payment to the Noriega/Solis regime must be in accordance with the provisions set forth in 565.404.

31 CFR 565.509 Reserve accounts.

(a) United States persons and U.S.-controlled Panamanian entities who are required under 565.202 and 565.203 to make payments and transfers of certain funds owed to the Government of Panama into Government of Panama Account No. 2 at the Federal Reserve Bank of New York, may elect instead to apply for a specific license authorizing them to establish a substitute blocked reserve account on their books in the name of the Panamanian governmental entity to whom the amount is owed. Specific licenses may be issued to permit payment into such reserve accounts of amounts due and owing the Government of Panama, which amounts shall include the principal amount of funds due, plus interest thereon, determined pursuant to paragraph (b) of this section, accrued from the later of April 8, 1988, or the date the payment obligation to the Government of Panama first arose, to the date of payment into the reserve account. In the case of funds already credited to Government of Panama Account No. 2, specific licenses may be issued authorizing transfer of such funds (including accrued interest) to such reserve accounts. Such licenses are revocable, and are conditioned upon continued compliance with the requirements of this part. Upon revocation of a license or at the direction of the Director of the Office of Foreign Assets Control, funds held in such reserve accounts must be paid into Government of Panama Account No. 2.

(b) Funds credited to reserve accounts pursuant to this section shall bear interest at a rate not less than the weekly average effective Federal Funds rate, as published by the Federal Reserve Board, applicable to each week of the period in which credit balances are maintained pursuant to this section.

(c) If necessary to assure the availability of funds blocked in reserve accounts pursuant to this section, the Director of the Office of Foreign Assets Control may at any time require the payment of such blocked funds into Government of Panama Account No. 2 at the Federal Reserve Bank of New York, as provided in 565.404, or the supplying of any form of security deemed necessary.

(d) A person receiving a specific license under paragraph (a) of this section shall certify to the Office of Foreign Assets Control within fifteen business days after receipt of that license that it has established the reserve account on its books as provided in that paragraph. Unless otherwise provided, a person licensed to establish such a reserve account shall file monthly reports with the Office of Foreign Assets Control setting forth all credits to the reserve account, and interest payable in accordance with paragraph (b) of this section on the reserve account, together with the nature of the debt, and the name of the Panamanian governmental entity to which it is owed. The report shall also contain a certification from an authorized official of the entity affirming that the entity submitting the report is in compliance with all other requirements of this part.

(54 FR 22, Jan. 3, 1989)

31 CFR 565.510 Authorization of new transactions concerning certain Panamanian property.

(a) Transactions involving property in which the Government of Panama has an interest are authorized where:

(1) The property comes within the jurisdiction of the United States or into the control or possession of any person located in the United States on or after December 20, 1989, except funds deposited or credited to a blocked reserve account pursuant to 565.509, or to Government of Panama Account No. 2 or 3 at the Federal Reserve Bank of New York pursuant to 565.202 or 565.203; or

(2) The interest in the property of the Government of Panama (e.g., exports consigned to the Government of Panama) arises on or after December 20, 1989.

(b) Unless authorized by the Office of Foreign Assets Control, transactions remain prohibited pursuant to 565.201 if they involve property in which the Government of Panama has an interest that:

(1) Was located in the United States or had come within the possession or control of persons located in the United States during the period between April 8, 1988, and December 20, 1989, or

(2) Is received in or enters the United States as an amount owed the Government of Panama with respect to an obligation for which payment was due prior to December 20, 1989.

(55 FR 3561, Feb. 1, 1990)

31 CFR 565.511 Transfer of funds credited to 565.509 blocked reserve accounts.

(a) Specific licenses. Specific licenses may be issued authorizing transfers of funds credited to blocked reserve accounts established under license issued pursuant to 565.509, where the amount to be transferred is different (except for the addition of interest owed) from that reflected in the most recent monthly report filed with the Office of Foreign Assets Control pursuant to 565.509(d). A specific license pursuant to this paragraph is required, for example, if the account holder claims adjustments based on amounts already allegedly satisfied through measures by the Noriega regime such as, for example, unilateral setoff, garnishment, or other scheme, or cases where greater principal amounts than those previously reported would be paid. Applications for specific licenses under this paragraph must include all of the following information in the form of a final report consistent with the format of previous monthly reports submitted pursuant to 565.509(d):

(1) A breakdown of the final amounts owed the Government of Panama, identifying each tax or other obligation, and the governmental agency to which the amount is owed;

(2) An itemized list of the adjustments to the amounts set forth in the previous monthly report submitted pursuant to 565.509(d), which result in the final amounts set forth in paragraph (a)(1) of this section, with explanations therefor;

(3) A certification in the following form:

I, (name of certifying official) hereby certify that all amounts stated in this application include interest at the rate and for the period required pursuant to 31 CFR 565.509. I further certify that the amounts set forth in this application represent payment of all obligations known to (name of account holder) to the Government of Panama owed during the period from April 8, 1988, to December 20, 1989, payment of which was not otherwise authorized by the Office of Foreign Assets Control and made during that period.

and;

(4) The written concurrence of the Government of Panama to the amount to be transferred.

(b) General license. Transfers directly to the Government of Panama of the unadjusted gross balances of blocked reserve accounts established under license issued pursuant to 565.509 are authorized. Persons electing to transfer gross balances must submit a final report within ten days after the transfer is made, containing the information and certification required in paragraphs (a) (1) and (3) of this section. In addition, the final report must be accompanied by a copy of the money transfer (check, bank wire, etc.) to the Government of Panama.

(55 FR 3561, Feb. 1, 1990)

31 CFR 565.511 Subpart F -- Reports

31 CFR 565.601 Required records.

Every person engaging in any transaction subject to the provisions of this part shall keep a full and accurate record of each transaction in which he engages, regardless of whether such transaction is effected pursuant to license or otherwise, and such record shall be available for examination for at least two years after the date of such transaction.

31 CFR 565.602 Reports to be furnished on demand.

Every person is required to furnish under oath, in the form of reports or otherwise, from time to time and at any time as may be required, complete information relative to any transaction, regardless of whether such transaction is effected pursuant to license or otherwise, subject to the provisions of this part. Such reports may be required to include the production of any books of account, contracts, letters or other papers, connected with any such transaction or property, in the custody or control of the persons required to make such reports. Reports with respect to transactions may be required either before or after such transactions are completed. The Secretary of the Treasury may, through any person or agency, conduct investigations, hold hearings, administer oaths, examine witnesses, receive evidence, take depositions, and require by subpoena the attendance and testimony of witnesses and the production of all books, papers, and documents relating to any matter under investigation, regardless of whether any report has been required or filed in connection therewith.

31 CFR 565.602 Subpart G -- Penalties

31 CFR 565.701 Penalties.

(a) Attention is directed to section 206 of the International Emergency Economic Powers Act, 50 U.S.C. 1705, which provides in part:

A civil penalty of not to exceed $10,000 may be imposed on any person who violates any license, order, or regulation issued under this title.

Whoever willfully violates any license, order, or regulation issued under this title shall, upon conviction, be fined not more than $50,000, or, if a natural person, may be imprisoned for not more than ten years, or both; and any officer, director, or agent of any corporation who knowingly participates in such violation may be punished by a like fine, imprisonment, or both.

This section of the International Emergency Economic Powers Act is applicable to violations of any provision of this part and to violations of the provisions of any license, ruling, regulation, order, direction, or instruction issued by or pursuant to the direction of authorization of the Secretary of the Treasury pursuant to this part or otherwise under the International Emergency Economic Powers Act.

(b) Attention is directed to 18 U.S.C. 1001, which provides:

Whoever, in any matter within the jurisdiction of any department or agency of the United States knowingly and willfully falsifies, conceals or covers up by any trick, scheme, or device a material fact, or makes any false, fictitious or fraudulent statements or representation or makes or uses any false writing or document knowing the same to contain any false, fictitious or fraudulent statement or entry, shall be fined not more than $10,000 or imprisoned not more than five years, or both.

(c) Violations of this part may also be subject to relevant provisions of the Customs laws and other applicable laws.

31 CFR 565.702 Prepenalty notice.

(a) When required. If the Director of the Office of Foreign Assets Control (hereinafter ''Director) has reasonable cause to believe that there has occurred a violation of any provision of this part or a violation of the provisions of any license, ruling, regulation, order, direction or instruction issued by or pursuant to the direction or authorization of the Secretary of the Treasury pursuant to this part or otherwise under the International Emergency Economic Powers Act, and the Director determines that further proceedings are warranted, he shall issue to the person concerned a notice of his intent to impose a monetary penalty. The prepenalty notice shall be issued whether or not another agency has taken any action with respect to this matter.

(b) Contents.

(1) Facts of violation.

The prepenalty notice shall:

(i) Describe the violation.

(ii) Specify the laws and regulations allegedly violated.

(iii) State the amount of the proposed monetary penalty.

(2) Right to make presentations. The prepenalty notice also shall inform the person of his right to make a written presentation within thirty (30) days of mailing of the notice as to why a monetary penalty should not be imposed, or, if imposed, why it should be in a lesser amount than proposed.

31 CFR 565.703 Presentation responding to prepenalty notice.

(a) Time within which to respond. The named person shall have 30 days from the date of mailing of the prepenalty notice to make a written presentation to the Director.

(b) Form and contents of written presentation. The written presentation need not be in any particular form, but shall contain information sufficient to indicate that it is in response to the prepenalty notice. It should contain responses to the allegations in the prepenalty notice and set forth the reasons why the person believes the penalty should not be imposed or, if imposed, why it should be in a lesser amount than proposed.

31 CFR 565.704 Penalty notice.

(a) No violation. If, after considering any presentations made in response to the prepenalty notice, the Director determines that there was no violation by the person named in the prepenalty notice, he promptly shall notify the person in writing of that determination and that no monetary penalty will be imposed.

(b) Violation. If, after considering any presentations made in response to the prepenalty notice, the Director determines that there was a violation by the person named in the prepenalty notice, he promptly shall issue a written notice of the imposition of the monetary penalty to that person.

31 CFR 565.705 Referral to United States Department of Justice.

In the event that the person named does not pay the penalty imposed pursuant to this subpart or make payment arrangements acceptable to the Director within thirty days of the mailing of the written notice of the imposition of the penalty, the matter shall be referred to the United States Department of Justice for appropriate action to recover the penalty in a civil suit in a Federal district court.

31 CFR 565.705 Subpart H -- Procedures

31 CFR 565.801 Licensing.

(a) General licenses. General licenses have been issued authorizing under appropriate terms and conditions certain types of transactions which are subject to the prohibitions contained in subpart B of this part. All such licenses are set forth in subpart E of this part. It is the policy of the Office of Foreign Assets Control not to grant applications for specific licenses authorizing transactions to which the provisons of an outstanding general license are applicable. Persons availing themselves of certain general licenses may be required to file reports and statements in accordance with the instruction specified in those licenses.

(b) Specific licenses -- (1) General course of procedure. Transactions subject to the prohibitions contained in subpart B of this part which are not authorized by general license may be effected only under specific licenses.

(2) Applications for specific licenses. Applications for specific licenses to engage in any transaction prohibited by or pursuant to this part may be filed in duplicate by letter or on an application form with the Office of Foreign Assets Control. Any person having an interest in a transaction in proposed transaction may file an application for a license authorizing such transaction, but the applicant for a specific license is required to make the fullest disclosure of all parties in interest to the transaction so that a decision on the application may be made with the fullest knowledge of all relevant facts and so that the identity and location of the persons who know the most about the transactions may be easily ascertained in the event of inquiry.

(3) Information to be supplied. The applicant must supply all information specified by relevant instructions and/or forms, and must fully disclose the names of all the parties who are concerned with or interested in the proposed transaction. If the application is filed for an account other than that of the applicant, the agent, as applicant, must disclose the name of his principal(s). Such documents as may be relevant shall be attached to each application as a part of such application except that documents previously filed with the Office of Foreign Assets Control may, where appropriate, be incorporated by reference. Applicants may be required to furnish such further information as is deemed necessary to a proper determination by the Office of Foreign Assets Control. If an applicant or other party in interest desires to present additional information or discuss or argue the application, he may do so at any time before or after decision. Arrangements for oral presentation should be made with the Office of Foreign Assets Control.

(4) Effect of denial. The denial of a license does not preclude the reopening of an application or the filing of a further application. The application or any other party in interest may at any time request explanation of the reasons for a denial by correspondence or personal interview.

(5) Reports under specific licenses. As a condition upon the issuance of any license, the licensee may be required to file reports with respect to the transaction covered by the license, in such form and at such times and places as may be prescribed in the license or otherwise.

(6) Issuance of license. Licenses will be issued by the Office of Foreign Assets Control acting on behalf of the Secretary of the Treasury or licenses may be issued by the Secretary of the Treasury acting directly or through any specifically designated person, agency, or instrumentality.

31 CFR 565.802 Decisions.

The Office of Foreign Assets Control will advise each applicant of the decision respecting filed applications. The decision of the Office of Foreign Assets Control acting on behalf of the Secretary of the Treasury with respect to an application shall constitute final agency action.

31 CFR 565.803 Amendment, modification, or revocation.

The provisions of this part and any rulings; licenses, whether general or specific; authorizations; instructions; orders; or forms issued hereunder may be amended, modified, or revoked at any time.

31 CFR 565.804 Rulemaking.

(a) All rules and other public documents are issued by the Secretary of the Treasury upon recommendation of the Director of the Office of Foreign Assets Control. In general, rulemaking by the Office of Foreign Assets Control involves foreign affairs functions of the United States, and for that reason is exempt from the requirements under the Administrative Procedure Act (5 U.S.C. 553) for notice of proposed rulemaking, opportunity for public comments, and delay in effective date. Wherever possible, however, it is the practice of the Office of Foreign Assets Control to receive written submissions or hold informal consultations with interested parties before the issuance of any rule or other public document.

(b) Any interested person may petition the Director of the Office of Foreign Assets Control in writing for the issuance, amendment, or repeal of any rule.

31 CFR 565.805 Delegation by the Secretary of the Treasury.

Any action which the Secretary of the Treasury is authorized to take pursuant to Executive Order No. 12635 may be taken by the Director, Office of Foreign Assets Control, or by any other person to whom the Secretary of the Treasury has delegated authority so to act.

31 CFR 565.806 Rules governing availability of information.

(a) The records of the Office of Foreign Assets Control which are required by 5 U.S.C. 552 to be made available to the public shall be made available in accordance with the definitions, procedures, payment of fees, and other provisions of the regulations on the Disclosure of Records of the Office of the Secretary and of other bureaus and offices of the Department issued under 5 U.S.C. 552 and published as part 1 of this title 31 of the Code of Federal Regulations.

(b) Any form issued for use in connection with the Panamanian Transactions Regulations may be obtained in person or by writing to the Office of Foreign Assets Control, Department of the Treasury, Washington, DC 20220.

31 CFR 565.806 Subpart I -- Paperwork Reduction Act

31 CFR 565.901 Paperwork Reduction Act Notice.

The information collection requirements in 565.601, 565.602, and 565.801 have been approved by the Office of Management and Budget and assigned control number 1505-0113.

(53 FR 37556, Sept. 27, 1988)

31 CFR 565.901 Appendix A to Part 565 -- Panamanian Governmental Entities

31 CFR 565.901 Pt. 565, App. A

Abbattoir Nacional

Aeronautica Civil de Panama and/or Direccion General de Aeronautica Civil

Air Panama

Autoridad Portuaria Nacional (National Port Authority)

Banco de Desarrollo Agropecuario

Banco Hipotecario Nacional (National Mortgage Bank)

Banco Institucional Patria (Institutional Bank of the Fatherland)

Banco Nacional de Panama (Panama National Bank)

Caja de Ahorros (Savings Bank)

Caja de Seguro Social (Social Security)

Citricos de Chiriqui (Chiriqui Citric Plant)

Colon Free Zone

Comite Nacional de Semillas (CANASEM)

Consejo Nacional del Banano

Consejo Nacional de Inversiones (CNI)

Consulado de Panama (Consulate of Panama) /1/

Consulado General de Panama (Consulate General of Panama) /1/

Consular y Naves and/or Direccion General Consular y Naves (SECNAVES)

Contadora Panama S.A.

Cooperativa Agroindustrial de Icacal (CAICA)

Corporacion Agropecuaria de Rio Hato (COAPRHA)

Corporacion Azucarera la Victoria (Sugar Mill)

Corporacion Bananera del Atlantico (COBANA)

Corporacion Bayano (Bayano Cement)

Corporacion Financiera Nacional

Corp. para el Desarrollo Integral del Bayano

Corp. para el Desarrollo Integral de Bocas del Toro

Direccion de Aeronautica Civil (Civil Aeronautics) (DAC)

Direccion de Patrimonio Historico (Historic Heritage)

Direccion General para el Desarrollo de la Comunidad (Community Development Admin.) (DIGEDECOM)

Direccion General de Aduanas (Customs Services)

Direccion Nacional de Acuicultura (DINAAC)

Direccion Nacional de Asuntos Administrativos

Direccion Nacional de Agroindustrias

Direccion Nacional de Asuntos Indigenas (DINAI)

Direccion Nacional de Desarrollo Social

Direccion Nacional de Informacion y Divulgacion

Direccion Nacional de Ingenieria

Direccion Nacional de Planificacion Sectorial

Direccion Nacional de Produccion Agricola

Direccion Nacional de Produccion Pecuaria

Direccion Nacional de Reforma Agraria

Direccion Metropolitana de Aseo

Directorio de Sanidad Vegetal

Electric Power Institute (IRHE)

Empresa Nacional de Maguinaria Agricola (ENDEMA)

Empresa Nacional de Semillas (ENASEM)

Explosivos Nacional, S.A. ( Property of Panamanian Military Officers)

Floresta Panamena

Fomento Lechero

Fuerza Aerea Panamena (Panamanian Air Force)

Hipodromo Presidente Remon (Race Tracks)

Instituto para la Formacion y Aprovechamiento de Recursos Humanos (IFARHU)

Instituto de Acueductos y Alcantarillados Nacionales

Instituto de Investigacion Agropecuaria de Panama

Instituto de Mercadeo Agropecuario (IMA)

Instituto de Recursos Hidraulicos y Electrificacion

Instituto de Seguro Agropecuario (ISA)

Instituto Nacional de Agricultura, Divisa (INA)

Instituto Nacional de Cultura (Culture) (INAC)

Instituto Nacional de Deporte (Sports) (INDE)

Instituto Nacional de Formacion Professional (INAFORP)

Instituto Nacional de Recursos Naturales Renovables (INRENARE)

Instituto Panameno Autonomo Cooperativo (IPACOOP)

Instituto Panameno de Comercio Exterior (IPCE)

Instituto Panameno de Habilitacion Especial (IPHE)

Instituto Nacional de Telecommunicaciones (National Telecommunications Institute) (INTEL)

Instituto Panameno de Turismo (Tourism ) (IPAT)

Laboratorio de Sanidad Animal

Marinexam, S.A.

Mision de Panama Ante las Naciones Unidas (Mission of Panama to the United Nations)

National Lottery

National Treasury of the Republic of Panama and/or Ministerio de Hacienda de la Republica de Panama

Organizacion Internacional Regional de Sanidad Agropecuaria (OIRSA)

Palma Africana

Segumar

Transit, S.A. (Property of Panamanian Military Officers)

Universidad de Panama (University of Panama)

Universidad Technologica

Water and Sewage Institute (IDAN)

Zona Libre de Colon.

(53 FR 20566, June 3, 1988, as amended at 54 FR 13883, Apr. 6, 1989)

/1/ Different restrictions may apply to various consulates and consulates general. Questions should be directed to the Office of Foreign Assets Control.

31 CFR 565.901 Appendix B to Part 565 -- Persons and Organizations Acting on Behalf of the Noriega/Solis Regime

31 CFR 565.901 Pt. 565, App. B

31 CFR 565.901 I. Officials of the Panamanian Defense Forces and Other Officials of the Noriega/Solis Regime