PART 500 -- FOREIGN ASSETS CONTROL REGULATIONS 

Pt. 500

Subpart A_Relation of This Chapter to Other Laws and Regulations 

Sec. 
500.101 Relation of this part to other laws and regulations.

Subpart B_Prohibitions 
500.201 Transactions involving designated foreign countries or their nationals; effective date. 
500.202 Transactions with respect to securities registered or inscribed in the name of a designated national. 
500.203 Effect of transfers violating the provisions of this chapter. 
500.204 Importation of and dealings in certain merchandise. 
500.205 Holding of certain types of blocked property in interest-bearing accounts. 
500.206 Exemption of information and informational materials.


Subpart C_General Definitions 
500.301 Foreign country. 
500.302 National. 
500.303 Nationals of more than one foreign country. 
500.305 Designated national. 
500.306 Specially designated national. 
500.307 Unblocked national. 
500.308 Person. 
500.309 Transactions. 
500.310 Transfer. 
500.311 Property; property interests. 
500.312 Interest. 
500.313 Property subject to the jurisdiction of the United States. 
500.314 Banking institution. 
500.316 License. 
500.317 General license. 
500.318 Specific license. 
500.319 Blocked account. 
500.320 Domestic bank. 
500.321 United States; continental United States. 
500.322 Authorized trade territory; member of the authorized trade territory. 
500.323 Occupied area. 
500.325 National securities exchange. 
500.326 Custody of safe deposit boxes. 
500.327 Blocked estate of a decedent. 
500.328 Status of those portions of Korea under control of the government of the Republic of Korea; and of the diplomatic and consular representatives of those countries. 
500.329 Person subject to the jurisdiction of the United States. 
500.330 Person within the United States. 
500.331 Merchandise. 
500.332 Information and informational materials.


Subpart D_Interpretations 
500.401 Reference to amended sections. 
500.402 Effect of amendment of sections of this chapter or of other orders, etc. 
500.403 Termination and acquisition of the interest of a designated national. 
500.404 Transactions between principal and agent. 
500.405 Exportation of securities, etc. to designated foreign countries. 
500.406 Drafts under irrevocable letters of credit; documentary drafts. 
500.407 Administration of blocked estates of decedents. 
500.408 Access to certain safe deposit boxes prohibited. 
500.409 Certain payments to designated foreign countries and nationals through third countries. 
500.410 Currency, coins, and postage and other stamps. 
500.411 Dealings abroad in commodities subject to the Regulations. 
500.412 Process vs. manufacture. 
500.413 Participation in certain development projects in Vietnam.


Subpart E_Licenses, Authorizations and Statements of Licensing Policy 
500.502 Effect of subsequent license or authorization. 
500.503 Exclusion from licenses and authorizations. 
500.504 Certain judicial proceedings with respect to property of designated nationals. 
500.505 Certain persons unblocked. 
500.506 -- 500.507 [Reserved]
500.508 Payments to blocked accounts in domestic banks. 
500.509 Entries in certain accounts for normal service charges. 
500.510 Payments to the United States, States and political subdivisions. 
500.511 Transactions by certain business enterprises. 
500.513 Purchase and sale of certain securities. 
500.514 Payment of dividends and interest on and redemption and collection of securities. 
500.515 Transfers of securities to blocked accounts in domestic banks. 
500.516 Voting and soliciting of proxies on securities. 
500.517 Access to safe deposit boxes under certain conditions. 
500.518 Payments for living, traveling, and similar personal expenses in the United States. 
500.519 Limited payments from accounts of United States citizens abroad. 
500.520 Payments from accounts of United States citizens in employ of United States in foreign countries and certain other persons. 
500.521 Certain remittances for necessary living expenses. 
500.522 Certain remittances to United States citizens in foreign countries. 
500.523 Transactions incident to the administration of decedents' estates. 
500.524 Payment from, and transactions in the administration of certain trusts and estates. 
500.525 Certain transfers by operation of law. 
500.526 Transactions involving blocked life insurance policies. 
500.527 Certain transactions with respect to United States patents, trademarks, and copyrights. 
500.528 Certain transactions with respect to blocked foreign patents, trademarks and copyrights authorized. 
500.529 Powers of attorney. 
500.530 Exportation of powers of attorney or instructions relating to certain types of transactions. 

500.533 Transactions incident to exportations to designated countries. 
500.535 Exchange of certain securities. 
500.536 Certain transactions with respect to merchandise affected by 500.204. 
500.549 Proof of origin. 
500.550 Transactions related to information and informational materials. 
500.551 Reimports. 
500.552 Research samples. 
500.553 Prior contractual commitments not a basis for licensing. 
500.554 Gifts of North Korean, North Vietnamese, Cambodian or South Vietnamese origin. 
500.556 Joint bank accounts. 
500.557 Proceeds of insurance policies. 
500.558 Accounts of blocked partnerships. 
500.559 Accounts of North Korean, North Vietnamese, Cambodian or South Vietnamese sole proprietorships. 
500.560 Bank accounts of official representatives of foreign governments in North Korea, North Viet-Nam, Cambodia, or South Viet-Nam. 
500.561 Transfers of abandoned property under State laws. 
500.562 [Reserved]
500.563 Transactions incident to travel to and within North Korea.
500.564 [Reserved]
500.565 Family remittances to nationals of Vietnam and Cambodia.
500.566 Certain transactions authorized on behalf of North Korean nationals incident to their travel and maintenance expenses.
500.567 U.S. assets of certain designated country corporations.
500.568 U.S. assets of blocked decedents.
500.569 [Reserved]
500.570 Cambodian property unblocked.
500.571 Transactions related to telecommunications authorized.
500.572 Humanitarian projects authorized.
500.573 Provision of goods and services to meet basic human needs authorized.
500.574 Executory contracts and related transactions authorized. 
500.575 Certain services to Vietnamese nationals authorized.
500.576 Authorization of transactions concerning certain development projects in Vietnam.
500.577 Authorization of bank transactions with respect to Vietnam by certain international organizations.
500.578 Vietnamese property unblocked.
500.579 Authorization for release of certain blocked transfers by banking institutions subject to U.S. jurisdiction.
500.580 Authorization of U.S. dollar clearing transactions involving North Korea.
500.581 Financial transactions related to diplomatic missions authorized.
500.582 Importation of North Korean - origin magnesite and magnesia.
500.583 News organization offices.
500.584 Energy sector projects in North Korea.


Subpart F_Reports
500.601 Records. 
500.602 Reports to be furnished on demand. 
500.603 Registration of persons holding blocked property subject to 500.201 or 500.202.500.611 Reports on Form TFR - 611.500.612 Registration of claims by U.S. nationals against Cambodia.Subpart G_Penalties500.701 Penalties.500.702 Prepenalty notice.500.703 Presentation responding to prepenalty notice.500.704 Hearing.500.705 Penalty notice. 500.706 Judicial Review.
500.707 Referral to United States Department of Justice; administrative collection measures.


Subpart H_Procedures 
500.801 Licensing. 
500.802 Unblocking. 
500.803 Decision. 
500.804 Records and reporting. 
500.805 Amendment, modification, or revocation. 
500.806 Rulemaking. 
500.807 Delegation by the Secretary of the Treasury. 
500.808 Customs procedures; merchandise specified in 500.204. 500.809 Rules governing availability of information. Subpart I_Miscellaneous Provisions500.901 Paperwork Reduction Act notice.

Appendix A to Part 500 -- Qualifying International Institutions
Authority: 50 U.S.C. App. 1 - 44; E.O. 9193, 7 FR 5205, 3 CFR, 1938 - 1943 Comp. p. 1174; E.O. 9989, 13 FR 4891, 3 CFR, 1943 - 1948 Comp., p. 748. Source: 15 FR 9040, Dec. 19, 1950, unless otherwise noted. Subpart A_Relation of This Chapter to Other Laws and Regulations 500.101   Relation of this part to other laws and regulations.(a)     This part is independent of parts 505, 515, 520, 530, 535 and 540 of this chapter. No license or authorization contained in or issued pursuant to one of those parts, or any other provision of law, authorizes any transaction prohibited by this part.
(b)     No license or authorization contained in or issued pursuant to this part shall be deemed to authorize any transaction prohibited by any law other than the Trading With the Enemy Act, 50 U.S.C. App. 5(b), as amended, the Foreign Assistance Act of 1961, 22 U.S.C. 2370, or any proclamation, order, regulation or license issued pursuant thereto.

[50 FR 27436, July 3, 1985] 

Subpart B_Prohibitions 

500.201   Transactions involving designated foreign countries or their nationals; effective date. 
(a)     All of the following transactions are prohibited, except as specifically authorized by the Secretary of the Treasury (or any person, agency, or instrumentality designated by him) by means of regulations, rulings, instructions, licenses, or otherwise, if either such transactions are by, or on behalf of, or pursuant to the direction of any designated foreign country, or any national thereof, or such transactions involve property in which any designated foreign country, or any national thereof, has at any time on or since the effective date of this section had any interest of any nature whatsoever, direct or indirect: 

(1)     All transfers of credit and all payments between, by, through, or to any banking institution or banking institutions wheresoever located, with respect to any property subject to the jurisdiction of the United States or by any person (including a banking institution) subject to the jurisdiction of the United States; 
(2)     All transactions in foreign exchange by any person within the United States; and 
(3)     The exportation or withdrawal from the United States of gold or silver coin or bullion, currency or securities, or the earmarking of any such property, by any person within the United States. 

(b)     All of the following transactions are prohibited, except as specifically authorized by the Secretary of the Treasury (or any person, agency, or instrumentality designated by him) by means of regulations, rulings, instructions, licenses, or otherwise, if such transactions involve property in which any designated foreign country, or any national thereof, has at any time on or since the effective date of this section had any interest of any nature whatsoever, direct or indirect: 

(1)     All dealings in, including, without limitation, transfers, withdrawals, or exportations of, any property or evidences of indebtedness or evidences of ownership of property by any person subject to the jurisdiction of the United States; and 
(2)     All transfers outside the United States with regard to any property or property interest subject to the jurisdiction of the United States. 

(c)     Any transaction for the purpose or which has the effect of evading or avoiding any of the prohibitions set forth in paragraph (a) or (b) of this section is hereby prohibited. 
(d)     The term ``designated foreign country'' means a foreign country in the following schedule, and the terms ``effective date'' and ``effective date of this section'' mean with respect to any designated foreign country, or any national thereof, 12:01 a.m. eastern standard time of the date specified in the following schedule, except as specifically noted after the country or area. 

Schedule
(1)     North Korea, i.e., Korea north of the 38th parallel of north latitude: December 17, 1950. 
(2)     Cambodia: April 17, 1975. 
(3)     North Vietnam; i.e., Vietnam north of the 17th parallel of north latitude: May 5, 1964. 
(4)     South Vietnam, i.e., Vietnam south of the 17th parallel of north latitude: April 30, 1975, at 12:00 p.m. e.d.t. 

[15 FR 9040, Dec. 19, 1950, as amended at 18 FR 2079, Apr. 14, 1953; 50 FR 27436, July 3, 1985] 

500.202   Transactions with respect to securities registered or inscribed in the name of a designated national. 
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 any designated national is prohibited irrespective of the fact that at any time (either prior to, on or subsequent to the ``effective date'') the registered or inscribed owner thereof may have, or appears to have, assigned, transferred or otherwise disposed of any such security. 

500.203   Effect of transfers violating the provisions of this chapter. 
(a)     Any transfer after the ``effective date'' which is in violation of any provision of this chapter or of any regulation, ruling, instruction, license, or other direction or authorization thereunder and involves any property in which a designated national has or has had an interest since such ``effective 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 the ``effective date'' 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 a designated national has or has had an interest since the ``effective 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 ``effective 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 section 5(b) of the Trading With the Enemy Act, as amended, and this chapter and any ruling, order, regulation, direction or instruction issued thereunder. 
(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 willful violation of the provisions of this chapter 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 the provisions of this chapter 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 chapter 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 20220, 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 by 500.504 or otherwise licensed or authorized pursuant to this chapter 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 the ``effective date'' there existed the interest of a designated foreign country or national thereof. 
(f)     For the purpose of this section the term ``property'' includes gold, silver, bullion, currency, coin, credit, securities (as that term is defined in section 2(1) of the Securities Act of 1933, as amended) (48 Stat. 74; 15 U.S.C. 77(b)), bills of exchange, notes, drafts, acceptances, checks, letters of credit, book credits, debts, claims, contracts, negotiable documents of title, mortgages, liens, annuities, insurance policies, options and futures in commodities, and evidences of any of the foregoing. The term ``property'' shall not, except to the extent indicated, be deemed to include chattels or real property. 

[15 FR 9040, Dec. 19, 1950, as amended at 41 FR 16553, Apr. 20, 1976] 

500.204   Importation of and dealings in certain merchandise. 
(a)     Except as specifically authorized by the Secretary of the Treasury (or any person, agency, or instrumentality designated by him) by means of regulations, or rulings, instructions, licenses, or otherwise, persons subject to the jurisdiction of the United States may not purchase, transport, import, or otherwise deal in or engage in any transaction with respect to any merchandise outside the United States specified in following paragraph (a) (1) of this section. 

(1)     Merchandise the country of origin of which is North Korea, North Viet-Nam, Cambodia, or South Viet-Nam. Articles which are the growth, produce or manufacture of these areas shall be deemed for the purposes of this chapter to be merchandise whose country of origin is North Korea, North Viet-Nam, Cambodia, or South Viet-Nam, notwithstanding that they may have been subjected to one or any combination of the following processes in another country:

(i)     Grading; (ii) testing; (iii) checking; (iv) shredding; (v) slicing; (vi) peeling or splitting; (vii) scraping; (viii) cleaning; (ix) washing; (x) soaking; (xi) drying; (xii) cooling, chilling or refrigerating; (xiii) roasting; (xiv) steaming; (xv) cooking; (xvi) curing; (xvii) combining of fur skins into plates; (xviii) blending; (xix) flavoring; (xx) preserving; (xxi) pickling; (xxii) smoking; (xxiii) dressing; (xxiv) salting; (xxv) dyeing; (xxvi) bleaching; (xxvii) tanning; (xxviii) packing; (xxix) canning; (xxx) labeling; (xxxi) carding; (xxxii) combing; (xxxiii) pressing; (xxxiv) any process similar to any of the foregoing. Any article wheresoever manufactured shall be deemed for the purposes of this chapter to be merchandise whose country of origin is North Korea, North Viet-Nam, Cambodia, or South Viet-Nam, if there shall have been added to such articles any embroidery, needle point, petit point, lace or any other article of adornment which is the product of North Korea, North Viet-Nam, Cambodia, or South Viet-Nam, notwithstanding that such addition to the merchandise may have occurred in a country other than North Korea, North Viet-Nam, Cambodia, or South Viet-Nam. 

[40 FR 19202, May 2, 1975, as amended at 41 FR 16553, Apr. 20, 1976; 45 FR 7224, Jan. 31, 1980] 
500.205  Holding of certain types of blocked property in interest-bearing accounts. (a)     Except as provided by paragraphs (d), (e) and (f) of this section, or as authorized by the Secretary of the Treasury or his delegate by specific license, any person holding any property included in paragraph (h) of this section is prohibited from holding, withholding, using, transferring, engaging in any transactions involving, or exercising any right, power, or privilege with respect to any such property, unless it is held in an interest-bearing account in a domestic bank. 
(b)     Any person presently holding property subject to the provisions of paragraph (a) of this section which, as of the effective date of this section, is not being held in accordance with the provisions of that paragraph, shall transfer such property to or hold such property or cause such property to be held in an interest-bearing account in any domestic bank within 30 days of the effective date of this section. 
(c)     Any person holding any checks or drafts subject to the provisions of 500.201 is authorized and directed, wherever possible consistent with state law (except as otherwise specifically provided in paragraph c(3) of this section), to negotiate or present for collection or payment such instruments and credit the proceeds to interest-bearing accounts. Any transaction by any person incident to the negotiation, processing, presentment, collection or payment of such instruments and deposit of the proceeds into an interest-bearing account is hereby authorized: Provided, That: 

(1)     The transaction does not represent, directly or indirectly, a transfer of the interest of a designated national to any other country or person; 
(2)     The proceeds are held in a blocked account indicating the designated national who is the payee or owner of the instrument; and, 
(3)     In the case of a blocked check or draft which has been purchased by the maker/drawer from the drawee bank (e.g., cashier's check, money order, or traveler's check) or which is drawn against a presently existing account, such bank, on presentment of the instrument in accordance with the provisions of this section, shall either:

(i)     Pay the instrument (subject to paragraphs c (1) and (2) of this section) or (ii) credit a blocked account on its books with the amount payable on the instrument. In either event, the blocked account shall be identified as resulting from the proceeds of a blocked check or draft, and the identification shall include a reference to the names of both the maker and payee of the instrument. 

(d)     Property subject to the provisions of paragraph (a) or (b) of this section, held by a person claiming a set-off against such property, is exempt from the provisions of paragraphs (a), (b) and c of this section to the extent of the set-off: Provided however, That interest shall be due from 30 days after the effective date of this section if it should ultimately be determined that the claim to a set-off is without merit. 
(e)     Property subject to the provisions of paragraphs (a) and (b) of this section, held in a customer's account by a registered broker/dealer in securities, may continue to be held for the customer by the broker/dealer provided interest is credited to the account on any balance not invested in securities in accordance with 500.513. The interest paid on such accounts by a broker/dealer who does not elect to hold such property for a customer's account in a domestic bank shall not be less than the maximum rate payable on the shortest time deposit available in any domestic bank in the jurisdiction in which the broker/dealer holds the account. 
(f)     Property subject to the provisions of paragraphs (a) and (b) of this section, held by a state agency charged with the custody of abandoned or unclaimed property under 500.561 may continue to be held by the agency provided interest is credited to the blocked account in which the property is held by the agency, or the property is held by the agency in a blocked account in a domestic bank. The interest credited to such accounts by an agency which does not elect to hold such property in a domestic bank shall not be less than the maximum rate payable on the shortest time deposit available in any domestic bank in the state. 
(g)     For purposes of this section, the term ``interest-bearing account'' means a blocked account earning interest at no less than the maximum rate payable on the shortest time deposit in the domestic bank where the account is held, provided however, that such an account may include six-month Treasury bills or insured certificates, with a maturity not exceeding six-months, appropriate to the amounts involved. 
(h)     The following types of property are subject to paragraphs (a) and (b) of this section: 

(1)     Any currency, bank deposit and bank accounts subject to the provisions of 500.201; (2)     Any property subject to the provisions of 500.201 which consists, in whole or in part, of undisputed and either liquidated or matured debts, claims, obligations or other evidence of indebtedness, to the extent of any amount that is undisputed and liquidated or matured; and, 
(3)     Any proceeds resulting from the payment of an obligation under paragraph c of this section. 

(i)     For purposes of this section, the term ``domestic bank'' includes any FSLIC-insured institution (as defined in 12 CFR 561.1). 
(j)     For the purposes of this section the term ``person'' includes the United States Government or any agency or instrumentality thereof, except where the agency or instrumentality submits to the Office of Foreign Assets Control an opinion of its General Counsel that either:

(1)     It lacks statutory authority to comply with this section, or (2) the requirements of paragraphs (a) and (b) of this section are inconsistent with the statutory program under which it operates.

[44 FR 11766, Mar. 2, 1979] 

500.206   Exemption of information and informational materials.
(a)     The importation from any country and the exportation to any country of information or informational materials as defined in 500.332, whether commercial or otherwise, regardless of format or medium of transmission, are exempt from the prohibitions and regulations of this part.(b)     All transactions of common carriers incident to the importation or exportation of information or informational materials, including mail, between the United States and any foreign country designated under 500.201, are exempt from the prohibitions and regulations of this part.(c)     This section does not authorize transactions related to information or informational materials not fully created and in existence at the date of the transaction, or to the substantive or artistic alteration or enhancement of information or informational materials, or to the provision of marketing and business consulting services by a person subject to the jurisdiction of the United States. Such prohibited transactions include, without limitation, payment of advances for information or informational materials not yet created and completed, provision of services to market, produce or co-produce, create or assist in the creation of information or informational materials, and payment or royalties to a designated national with respect to income received for enhancements or alterations made by persons subject to the jurisdiction of the United States to information or informational materials imported from a designated national.
(d)     This section does not authorize transactions incident to the exportation of restricted technical data as defined in 799 of the Export Administration Regulations, 15 CFR parts 768 - 799, or to the exportation of goods for use in the transmission of any data. The exportation of such goods to designated foreign countries is prohibited, as provided in 500.201 of this part and 785.1 of the Export Administration Regulations.Example B1: A U.S. publisher ships 500 copies of a book to Vietnam directly from San Francisco aboard a chartered aircraft, and receives payment by means of a letter of credit issued by a Vietnamese bank and confirmed by an American bank. These are permissible transactions under this section.
Example B2: A Vietnamese party exports a single master copy of a Vietnamese motion picture to a U.S. party and licenses the U.S. party to duplicate, distribute, show and exploit in the United States the Vietnamese film in any medium, including home video distribution, for five years, with the Vietnamese party receiving 40% of the net income. All transactions relating to the activities described in this example are authorized under this section or  500.550.
Example B3: A U.S. recording company proposes to contract with a Vietnamese musician to create certain musical compositions, and to advance royalties of $10,000 to the musician. The music written in Vietnam is to be recorded in a studio that the recording company owns in the Bahamas. These are all prohibited transactions. The U.S. party is prohibited under 500.201 from contracting for the Vietnamese musician's services, from transferring $10,000 to Vietnam to pay for those services, and from providing the Vietnamese with production services through the use of its studio in the Bahamas. No informational materials are in being at the time of these proposed transactions. However, the U.S. recording company may contract to purchase and import preexisting recordings by the Vietnamese musician, or to copy the recordings in the United States and pay negotiated royalties to Vietnam under this section or 500.550.Example B4: A Vietnamese party enters into a subpublication agreement licensing a U.S. party to print and publish copies of a musical composition and to sub-license rights of public performance, adaptation, and arrangement of the musical composition, with payment to be a percentage of income received. All transactions related to the activities described in this example are authorized under this section and 500.550, except for adaption and arrangement, which constitute artistic enhancement of the Vietnamese composition. Payment to the Vietnamese party may not reflect income received as a result of these enhancements.
[54 FR 5231, Feb. 2, 1989, as amended at 60 FR 8934, Feb. 16, 1995]

Subpart C_General Definitions 

500.301   Foreign country. 
The term foreign country also includes, but not by way of limitation: 
(a)     The state and the government of any such territory on or after the ``effective date'' as well as any political subdivision, agency, or instrumentality thereof or any territory, dependency, colony, protectorate, mandate, dominion possession or place subject to the jurisdiction thereof, 
(b)     Any other government (including any political subdivision, agency, or instrumentality thereof) to the extent and only to the extent that such government exercises or claims to exercise control, authority, jurisdiction or sovereignty over territory which on the ``effective date'' constituted such foreign country, 
(c)     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 for the benefit or on behalf of any of the foregoing, and 
(d)     Any territory which on or since the ``effective date'' is controlled or occupied by the military, naval or police forces or other authority of such foreign country. 


500.302   National. 
(a)     The term national shall include: 

(1)     A subject or citizen of a country or any person who has been domiciled in or a permanent resident of that country at any time on or since the ``effective date,'' except persons who were resident or domiciled there in the service of the U.S. Government.
(2)     Any partnership, association, corporation, or other organization, organized under the laws of, or which on or since the ``effective date'' had or has had its principal place of business in a foreign country, or which on or since such effective date was or has been controlled by, or a substantial part of the stock, shares, bonds, debentures, notes, drafts, or other securities or obligations of which, was or has been owned or controlled by, directly or indirectly, a foreign country and/or one or more nationals thereof as defined in this section. 
(3)     Any person to the extent that such person is, or has been, since the ``effective date'' acting or purporting to act directly or indirectly for the benefit or on behalf of any national of a foreign country. 
(4)     Any other person who there is reasonable cause to believe is a ``national'' as defined in this section. 

(b)     The Secretary of the Treasury retains full power to determine that any person is or shall be deemed to be a ``national'' within the meaning of this section, and to specify the foreign country of which such person is or shall be deemed to be a national. 

[17 FR 5343, June 12, 1952, as amended at 50 FR 27436, July 3, 1985] 

500.303   Nationals of more than one foreign country. 
(a)     Any person who by virtue of any provision in this chapter is a national of more than one foreign country shall be deemed to be a national of each of such foreign countries. 
(b)     In any case in which a person is a national of two or more designated foreign countries, a license or authorization with respect to nationals of one of such designated foreign countries shall not be deemed to apply to such person unless a license or authorization of equal or greater scope is outstanding with respect to nationals of each other designated foreign country of which such person is a national. 
(c)     In any case in which the combined interests of two or more designated foreign countries and/or nationals thereof are sufficient in the aggregate to constitute control or ownership of 25 per centum or more of the stock, shares, bonds, debentures, notes, drafts, or other securities or obligations of a partnership, association, corporation or other organization, but such control or a substantial part of such stock, shares, bonds, debentures, notes, drafts, or other securities or obligations is not held by any one such foreign country and/or national thereof, such partnership, association, corporation or other organization shall be deemed to be a national of each of such foreign countries. 

500.305   Designated national. 
The term designated national shall mean any country designated in 500.201 and any national thereof including any person who is a specially designated national. 500.306   Specially designated national. (a)     The term specially designated national shall mean: (1)     Any person who is determined by the Secretary of the Treasury to be a specially designated national, 
(2)     Any person who on or since the ``effective date'' has acted for or on behalf of the Government or authorities exercising control over any designated foreign country, or 
(3)     Any partnership, association, corporation or other organization which on or since the ``effective date'' has been owned or controlled directly or indirectly by the Government or authorities exercising control over any designated foreign country or by any specially designated national. 

[15 FR 9040, Dec. 19, 1950, as amended at 41 FR 16554, Apr. 20, 1976] 

500.307   Unblocked national. 
Any person licensed pursuant to 500.505 as an unblocked national shall, while so licensed, be regarded as a person within the United States who is not a national of any designated foreign country: Provided, however, That the licensing of any person as an ``unblocked national'' shall not be deemed to suspend in any way the requirements of any section of this chapter relating to reports, and the production of books, documents, records, etc. 
[15 FR 9040, Dec. 19, 1950, as amended at 54 FR 5231, Feb. 2, 1989]

500.308   Person. 
The term person means an individual, partnership, association, corporation, or other organization. 
500.309   Transactions. 
The phrase transactions which involve property in which any designated foreign country, or any national thereof, has any interest of any nature whatsoever, direct or indirect, includes, but not by way of limitation:
(a)     Any payment or transfer to any such designated foreign country or national thereof, (b) any export or withdrawal from the United States to such designated foreign country, and c any transfer of credit, or payment of an obligation, expressed in terms of the currency of such designated foreign country. 

500.310   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 other fiduciary; the creation or transfer of any lien; the issuance, docketing, filing, or the levy of or under any judgment, decree, attachment, 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. 

500.311   Property; property interests. 
Except as defined in 500.203(f) for the purposes of that section 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, any debts, indebtedness obligations, notes, debentures, stocks, bonds, coupons, any other financial securities, bankers' acceptances, mortgages, pledges, liens or other right in the nature of security, warehouse receipts, bills of lading, trust receipts, bills of sale, any other evidences of title, ownership or indebtedness, 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, copyrights, contracts or licenses affecting or involving patents, trademarks or copyrights, insurance policies, safe deposit boxes and their contents, annuities, pooling agreements, contracts of any nature whatsoever, services, and any other property, real, personal, or mixed, tangible or intangible, or interest or interests therein, present, future, or contingent. 
[15 FR 9040, Dec. 19, 1950, as amended at 55 FR 31179, Aug. 1, 1990]

500.312   Interest. 
The term interest when used with respect to property shall mean an interest of any nature whatsoever, direct or indirect. 

500.313   Property subject to the jurisdiction of the United States. 
(a)     The phrase property subject to the jurisdiction of the United States includes, without limitation, securities, whether registered or bearer, issued by: 

(1)     The United States or any State, district, territory, possession, county, municipality, or any other subdivision or agency or instrumentality of any thereof; or 
(2)     Any person within the United States whether the certificate which evidences such property or interest is physically located within or outside the United States. 

(b)     The phrase property subject to the jurisdiction of the United States also includes, without limitation, securities, whether registered or bearer, by whomsoever issued, if the certificate evidencing such property or interest is physically located within the United States. 

500.314   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 his 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.'' 

500.316   License. 
Except as otherwise specified, the term license shall mean any license or authorization contained in or issued pursuant to this chapter. 
[28 FR 6973, July 9, 1963] 

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

500.318   Specific license. 
A specific license is any license or authorization issued pursuant to this chapter but not set forth in this chapter. 

500.319   Blocked account. 
The term blocked account shall mean an account in which any designated national has an interest, with respect to which account payments, transfers or withdrawals of other dealings may not be made or effected except pursuant to an authorization or license authorizing such action. The term blocked account shall not be deemed to include accounts of unblocked nationals. 

500.320   Domestic bank. 
The term domestic bank shall mean any branch or office within the United States of any of the following which is not a national of any designated foreign country: 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 chapter. 

500.321   United States; continental United States. 
The term United States means the United States and all areas under the jurisdiction or authority thereof, including U.S. trust territories and commonwealths. The term continental United States means the states of the United States and the District of Columbia.
[50 FR 27436, July 3, 1985] 

500.322   Authorized trade territory; member of the authorized trade territory. 
(a)     The term authorized trade territory shall include: 
(1)     North, South and Central America, including the Caribbean region, except Cuba; 
(2)     Africa; 
(3)     Australia and Oceania, including Indonesia, New Zealand, and the Philippines;
(4)     Andorra, Austria, Belgium, Cyprus, Denmark, Ireland, the Federal Republic of Germany and the Western Sector of Berlin, Finland, France (including Monaco), Greece, Iceland, Italy, Liechtenstein, Luxembourg, Malta, the Netherlands, Norway, Portugal, San Marino, Spain, Sweden, Switzerland, Turkey, the United Kingdom, Vatican City, and Yugoslavia. 
(5)     Afghanistan, Bangladesh, Bhutan, Burma, Hong Kong, India, Iran, Iraq, Israel, Japan, Jordan, Kuwait, Laos, Lebanon, Macao, Malaysia, Nepal, Oman, Pakistan, Qatar, Saudi Arabia, Singapore, South Korea, Sri Lanka (Ceylon), Syrian Arab Republic, Taiwan, Thailand, United Arab Emirates, and Yemen. 
(6)     Any colony, territory, possession, or protectorate of any country included within this paragraph; but the term shall not include the United States. 

(b)     The term member of the authorized trade territory shall mean any of the foreign countries or political subdivisions comprising the authorized trade territory. 

(50 U.S.C. App. 5(b); E. O. 9193, 3 CFR 1943 Cum. Supp.; Treas. Dept. Order No. 128, 32 FR 3472)
[40 FR 19202, May 2, 1975, as amended at 41 FR 16554, Apr. 20, 1976; 42 FR 27199, May 27, 1977; 54 FR 5231, Feb. 2, 1989] 

500.323   Occupied area. 
The term occupied area shall mean any territory occupied by a designated foreign country which was not occupied by such country prior to June 25, 1950. 

500.325   National securities exchange. 
The term national securities exchange shall mean an exchange registered as a national securities exchange under section 6 of the Securities Exchange Act of 1934 (48 Stat. 885, 15 U.S.C. 78f). 

500.326   Custody of safe deposit boxes. 
Safe deposit boxes shall be deemed to be in the custody not only of all persons having access thereto but also of the lessors of such boxes whether or not such lessors have access to such boxes. The foregoing shall not in any way be regarded as a limitation upon the meaning of the term custody. 

500.327   Blocked estate of a decedent. 
The term blocked estate of a decedent shall mean any decedent's estate in which a designated national has an interest. A person shall be deemed to have an interest in a decedent's estate if he:
(a)     Was the decedent; 
(b)     Is a personal representative; or 
(c)     Is a creditor, heir, legatee, devisee, distributee, or beneficiary. 


500.328   Status of those portions of Korea under control of the government of the Republic of Korea; and of the diplomatic and consular representatives of those countries. 
(a)     Those portions of Korea which are under the control of the government of the Republic of Korea are not included within the term designated foreign country. 
(b)     The diplomatic and consular representatives of the Republic of Korea are not deemed to be acting or purporting to act directly or indirectly for the benefit or on the behalf of any designated foreign country. 

[41 FR 16554, Apr. 20, 1976, as amended at 45 FR 7224, Jan. 31, 1980] 

500.329   Person subject to the jurisdiction of the United States. 
The term, person subject to the jurisdiction of the United States, includes: 
(a)     Any individual, wherever located, who is a citizen or resident of the United States; 
(b)     Any person within the United States as defined in 500.330; (c)     Any corporation organized under the laws of the United States or of any state, territory, possession, or district of the United States; and (d)     Any corporation, partnership, or association, wherever organized or doing business, that is owned or controlled by persons specified in paragraph (a) or c of this section.[50 FR 27436, July 3, 1985] 

500.330   Person within the United States. 
(a)     The term, person within the United States, includes: 

(1)     Any person, wheresoever located, who is a resident of the United States; 
(2)     Any person actually within the United States; 
(3)     Any corporation organized under the laws of the United States or of any state, territory, possession, or district of the United States; and 
(4)     Any partnership, association, corporation, or other organization, wheresoever organized or doing business, which is owned or controlled by any person or persons specified in paragraphs (a) (1), (2), or (3) of this section.

[20 FR 1379, Mar. 8, 1955] 

500.331   Merchandise. 
The term merchandise means all goods, wares and chattels of every description without limitation of any kind. 
[24 FR 1984, Mar. 18, 1959] 

500.332  Information and informational materials.
(a)     For purposes of this part, the term informational materials includes, without limitation:
(1)     Publications, films, posters, phonograph records, photographs, microfilms, microfiche, tapes, compact disks, CD ROMs, artworks, and news wire feeds.
(2)     To be considered informational materials, artworks must be classified under chapter subheading 9701, 9702, or 9703 of the Harmonized Tariff Schedule of the United States.

(b)     The terms information and informational materials with respect to U.S. exports do not include items:
(1)     that would be controlled for export pursuant to section 5 of the Export Administration Act of 1979, 50 U.S.C. App. 2401 - 2420 (1979) (the ``EAA''), or section 6 of the EAA to the extent that such controls promote the nonproliferation or antiterrorism policies of the United States, including ``software'' that is not ``publicly available'' as these terms are defined in 15 CFR Parts 779 and 799.1 (1994); or
(2)     with respect to which acts are prohibited by 18 U.S.C. chapter 37.

[60 FR 8934, Feb. 16, 1995]

Subpart D_Interpretations 

500.401   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. 
500.402   Effect of amendment of sections of this chapter or of other orders, etc. 
Any amendment, modification, or revocation of any section of this chapter or of any order, regulation, ruling, instruction, or license issued by or under the direction of the Secretary of the Treasury pursuant to section 3(a) or 5(b) of the Trading With the Enemy Act, as amended, 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 section, order, regulation, ruling, instruction or license shall continue and may be enforced as if such amendment, modification, or revocation had not been made. 
500.403   Termination and acquisition of the interest of a designated national. 
(a)     Except as provided in 500.525, whenever a transaction licensed or authorized by or pursuant to this chapter results in the transfer of property (including any property interest) away from a designated national, such property shall no longer be deemed to be property in which a designated national has or has had an interest unless there exists in such property an interest of a designated national, the transfer of which has not been effected pursuant to license or other authorization. 
(b)     Unless otherwise specifically provided in a license or authorization contained in or issued pursuant to this chapter, if property (including any property interest) is transferred to a designated national such property shall be deemed to be property in which there exists the interest of a designated national. 

500.404   Transactions between principal and agent. 
A transaction between any person within the United States and any principal, agent, home office, branch, or correspondent, outside the United States of such person is a transaction prohibited by 500.201 to the same extent as if the parties to the transaction were in no way affiliated or associated with each other. 500.405   Exportation of securities, etc. to designated foreign countries. Section 500.201 prohibits the exportation of securities, currency, checks, drafts and promissory notes to designated foreign countries. 500.406   Drafts under irrevocable letters of credit; documentary drafts. Section 500.201 prohibits the presentation, acceptance or payment of: 
(a)     Drafts or other orders for payment drawn under irrevocable letters of credit issued in favor or on behalf of any designated national; 
(b)     Drafts or other orders for payment, in which any designated national has on or since the ``effective date'' had any interest, drawn under any irrevocable letter of credit; and 
(c)     Documentary drafts in which any designated national has on or since the ``effective date'' had any interest. 

500.407   Administration of blocked estates of decedents. 
Section 500.201 prohibits all transactions incident to the administration of the blocked estate of a decedent, including the appointment and qualification of personal representatives, the collection and liquidation of assets, the payment of claims, and distribution to beneficiaries. Attention is directed to 500.523 which authorizes certain transactions in connection with the administration of blocked estates of decedents and 500.568 which authorizes the unblocking by specific license of estate assets to certain heirs under certain circumstances. 
[15 FR 9040, Dec. 19, 1950, as amended at 54 FR 5231, Feb. 2, 1989]
500.408   Access to certain safe deposit boxes prohibited. Section 500.201 prohibits access to any safe deposit box within the United States in the custody of any designated national or containing any property in which any designated national has any interest or which there is reasonable cause to believe contains property in which any such designated national has any interest. Attention is directed to 500.517 which authorizes access to such safe deposit boxes under certain conditions. 500.409   Certain payments to designated foreign countries and nationals through third countries. Section 500.201 prohibits any request or authorization made by or on behalf of a bank or other person within the United States to a bank or other person outside of the United States as a result of which request or authorization such latter bank or person makes a payment or transfer of credit either directly or indirectly to a designated national. 
[18 FR 2080, Apr. 14, 1953] 
500.410   Currency, coins, and postage and other stamps. Currency, coins, and postage and other stamps issued by North Korea, North Viet-Nam, Cambodia, or South Viet-Nam are merchandise of North Korean, North Vietnamese, Cambodian, or South Vietnamese origin subject to 500.204(a)(1). [41 FR 16554, Apr. 20, 1976] 500.411   Dealings abroad in commodities subject to the Regulations. Section 500.204 prohibits the unlicensed importation into the United States of commodities of North Korean, North Vietnamese, Cambodian, or South Vietnamese origin. It also prohibits, unless licensed, persons subject to the jurisdiction of the United States from purchasing, transporting or otherwise dealing with such commodities which are outside the United States. 
[41 FR 16554, Apr. 20, 1976] 
500.412   Process vs. manufacture. A commodity subject to 500.204 remains subject howsoever it has been processed. It should not be assumed that a commodity which has undergone operations other than those listed in 500.204(a)(1), has become a manufactured form of the commodity rather than a processed form thereof. In case of question, a ruling should be requested from the Office of Foreign Assets Control. Requests for rulings in the form of license applications or otherwise should include adequate technical detail. It should be noted that it is quite possible for merchandise to have North Korea, North Viet-Nam, Cambodia, or South Viet-Nam as its ``country of origin'' for Foreign Assets Control purposes while having some other country as its ``country of origin'' for marking or statistical purposes. 
[41 FR 16554, Apr. 20, 1976] 
500.413  Participation in certain development projects in Vietnam.The following examples illustrate the scope of the authorization in 500.576 for dealings in property in which Vietnam or a Vietnamese national has an interest with respect to development projects in Vietnam formally proposed or approved for execution, funding or sponsorship by a qualified international institution listed in appendix A to this part (``Qualified Projects'').
Example B 1: The Government of Vietnam (``Vietnam'') approaches a U.S. financial consulting firm (the ``U.S. Consulting Firm'') for advice on building cement plants in Hanoi and Ho Chi Minh City. The project might be eligible for funding by the Asian Development Bank (the ``ADB''), and Vietnam wants the U.S. Consulting Firm's assistance in conducting a feasibility study for submission to the ADB. Since the project has not yet been formally proposed or approved for funding by the ADB, no involvement of the U.S. Consulting Firm is authorized pursuant to 500.576. However, had the ADB formally proposed the project in its monthly ADB Business Opportunities as a project being considered for funding, or had it funded the feasibility study, 500.576 would authorize the U.S. Consulting Firm's transactions.Example B 2: Upon ADB approval of funding for the cement plant project, a U.S. company (the ``U.S. Company'') forms a joint venture with a Vietnamese company to bid on construction of the cement plants in Hanoi and Ho Chi Minh City. The joint venture's bid is successful, and it purchases construction equipment from the United States, financed by a U.S. bank and insured by a U.S. company. Several items are sourced from the United States during construction, including cement equipment, which is covered by a ten-year service and maintenance agreement. The joint venture agreement calls for the continued management and operation of the plants by the U.S. Company after completion, and for the insurance of the plants by a U.S. insurance company. Each of these transactions with respect to the Qualified Project is authorized by 500.576.Example B 3: The International Finance Corporation (``IFC'') offers equity investment in a Vietnamese company to finance environmental safeguards for drilling operations in offshore oil fields. Various U.S. investors, including venture capital companies, brokerage firms, and investment banks contribute capital and receive shares in the Vietnamese company. This equity investment in a Qualified Project is authorized by 500.576. The U.S. companies purchasing these shares as part of the IFC-sponsored development project may hold or resell them, including resale to other persons subject to U.S. jurisdiction. Shares acquired by entities not subject to U.S. jurisdiction may not then be purchased or repurchased by a person subject to U.S. jurisdiction.Example B 4: (a) An Indonesian company (the ``Contractor'') is a successful bidder on a Qualified Project, and hires a U.S. law firm to represent it in contract negotiations with Vietnam to build a fish processing and canning facility in Vietnam funded by the World Bank. The law firm may represent the Contractor throughout the course of the project pursuant to 500.576, once the project has been formally proposed or approved for funding by the World Bank.(b)     Once the Qualified Project is underway, the Contractor purchases equipment manufactured in France by a French company. The long-term servicing of the equipment, however, will be provided by the French company's U.S. subsidiary. The service transactions are authorized pursuant to 500.576.(c)     After the processing facility is completed, Vietnam hires a U.S. marketing firm to develop marketing strategies for the product worldwide. It further asks the marketing firm to execute the strategies it devises and to represent the product in South-East Asia, including the domestic market in Vietnam. The marketing firm in turn would hire the brokerage services of a U.S. citizen domiciled in Thailand for the sale of the product to that country. These transactions are outside the scope of 500.576, and violate 500.201, because they are not directly incident to the Qualified Project funded by the World Bank. [58 FR 68530, Dec. 28, 1993]Subpart E_Licenses, Authorizations and Statements of Licensing Policy 500.502   Effect of subsequent license or authorization. No license or other authorization contained in this chapter or otherwise issued by or under the direction of the Secretary of the Treasury pursuant to section 3(a) or 5(b) of the Trading With the Enemy Act, as amended, shall be deemed to authorize or validate any transaction effected prior to the issuance thereof, unless such license or other authorization specifically so provides. 
500.503   Exclusion from licenses and authorizations. The Secretary of the Treasury reserves the right to exclude from the operation of any license or from the privilege 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 notice or constructive notice thereof. 
500.504   Certain judicial proceedings with respect to property of designated nationals. (a)     Subject to the limitations of paragraphs (b), c and (d) of this section judicial proceedings are authorized with respect to property in which on or since the ``effective date'' there has existed the interest of a designated national. 
(b)     A judicial proceeding is authorized by this section only if it is based upon a cause of action which accrued prior to the ``effective date.'' 
(c)     This section does not authorize or license: 

(1)     The entry of any judgment or of any decree or order of similar or analogous effect upon any judgment book, minute book, journal or otherwise, or the docketing of any judgment in any docket book, or the filing of any judgment roll or the taking of any other similar or analogous action. 
(2)     Any payment or delivery out of a blocked account based upon a judicial proceeding nor does it authorize the enforcement or carrying out of any judgment or decree or order of similar or analogous effect with regard to any property in which a designated national has an interest. 

(d)     If a judicial proceeding relates to property in which there exists the interest of any designated national other than a person who would not have been a designated national except for his relationship to an occupied area, such proceeding is authorized only if it is based upon a claim in which no person other than any of the following has had an interest since the ``effective date'': 

(1)     A citizen of the United States; 
(2)     A corporation organized under the laws of the United States or any State, territory or possession thereof, or the District of Columbia; 
(3)     A natural person who is and has been since the ``effective date'' a resident of the United States and who has not been a specially designated national; 
(4)     A legal representative (whether or not appointed by a court of the United States) or successor in interest by inheritance, device, bequest, or operation of law, who falls within any of the categories specified in paragraphs (d) (1), (2) and (3) of this section but only to the same extent that their principals or predecessors would be qualified by such paragraph. 

500.505  Certain persons unblocked. (a)     The following persons are hereby licensed as unblocked nationals:(1)     Any person resident in, or organized under the laws of a jurisdiction in, the United States or the authorized trade territory who or which has never been a designated national;
(2)     Any individual resident in the United States who is not a specially designated national; and
(3)     Any corporation, partnership or association that would be a designated national solely because of the interest therein of an individual licensed in paragraph (a) or (b) of this section as an unblocked national.

(b)     Individual nationals of a designated country who take up residence in the authorized trade territory may apply to the Office of Foreign Assets Control to be specifically licensed as unblocked nationals.
(c)     The licensing of any person as an unblocked national shall not suspend the requirements of any section of this chapter relating to the maintenance or production of records.

[50 FR 27436, July 3, 1985, as amended at 54 FR 5232, Feb. 2, 1989]
500.506 -- 500.507 [Reserved]500.508   Payments to blocked accounts in domestic banks. 
(a)     Any payment or transfer of credit to a blocked account in a domestic bank in the name of any designated national is hereby authorized providing such payment or transfer shall not be made from any blocked account if such payment or transfer represents, directly or indirectly, a transfer of the interest of a designated national to any other country or person. 
(b)     This section does not authorize: 

(1)     Any payment or transfer to any blocked account held in a name other than that of the designated national who is the ultimate beneficiary of such payment or transfer; or 
(2)     Any foreign exchange transaction 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. 

(c)     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. 
(d)     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 are held. 
(e)     This section does not authorize any payment or transfer from a blocked account in a domestic bank to a blocked account in another domestic bank held under any name or designation which differs from the name or designation of the specific blocked account or sub-account from which the payment or transfer is made. 
(f)     Banking institutions receiving instructions to execute payments or transfers under paragraph (a) of this section must provide written notification to the Office of Foreign Assets Control, Compliance Division, U.S. Treasury Department, 1500 Pennsylvania Avenue NW._Annex, Washington DC 20220, within 10 business days from the value date of the payment or transfer. The notification shall include a photocopy of the payment or transfer instructions received, shall confirm that the payment or transfer has been deposited into a new or existing blocked account established in the name of the designated national pursuant to the requirements of this part and shall provide the account number, the name of the account, the location of the account, the name and address of the transferee banking institution, the date of the deposit, the amount of the payment transfer, the name and telephone number of a contact person at the transferee financial institution from whom compliance information may be obtained, and the name and telephone number of the person, registered with the Office of Foreign Assets Control pursuant to 500.603, responsible for the administration of blocked assets at the transferee financial institution from whom records on blocked assets may be obtained.[40 FR 7649, Feb. 21, 1975, as amended at 58 FR 47644, Sept. 10, 1993] 500.509   Entries in certain accounts for normal service charges. 
(a)     Any banking institution within the United States is hereby authorized to: 

(1)     Debit any blocked account with such banking institution (or with another office within the United States of such banking institution) in payment or reimbursement for normal service charges owed to such banking institution by the owner of such blocked account. 
(2)     Make book entries against any foreign currency account maintained by it with a banking institution in any designated foreign country for the purpose of responding to debits to such account for normal service charges in connection therewith. 

(b)     As used in this section, the term ``normal service charge'' shall include charges in payment or reimbursement for interest due; cable, telegraph, or telephone charges; postage costs; custody fees; small adjustment charges to correct bookkeeping errors; and, but not by way of limitation, minimum balance charges, account carrying charges, notary and protest fees, and charges for reference books, photostats, credit reports, transcripts of statements, registered mail insurance, stationery and supplies, check books, and other similar items. 

500.510   Payments to the United States, States and political subdivisions. (a)     The payment from any blocked account to the United States or any agency or instrumentality thereof or to any State, territory, district, county, municipality or other political subdivision in the United States, of customs duties, taxes, and fees payable thereto by the owner of such blocked account is hereby authorized. 
(b)     This section also authorizes transactions incident to the payment of customs duties, taxes, and fees from blocked accounts, such as the levying of assessment, the creation and enforcement of liens, and the sale of blocked property in satisfaction of liens for customs duties, taxes, and fees. 

500.511   Transactions by certain business enterprises. (a)     Except as provided in paragraphs (b), c and (d) of this section any partnership, association, corporation or other organization which on the ``effective date'' was actually engaged in a commercial, banking or financial business within the United States and which is a national of any designated foreign country, is hereby authorized to engage in all transactions ordinarily incidental to the normal conduct of its business activities within the United States. 
(b)     This section does not authorize any transaction which would require a license if such organization were not a national of any designated foreign country. 
(c)     This section does not authorize any transaction by a specially designated national. 
(d)     Any organization engaging in business pursuant to this section shall not engage in any transaction, pursuant to this section or any other license or authorization contained in this chapter, which, directly or indirectly, substantially diminishes or imperils the assets of such organization or otherwise prejudicially affects the financial position of such organization. 
(e)     No dealings with regard to any account shall be evidence that any person having an interest therein is actually engaged in commercial, banking or financial business within the United States. 

500.513   Purchase and sale of certain securities. (a)     The bona fide purchase and sale of securities on a national securities exchange by banking institutions within the United States for the account, and pursuant to the authorization, of nationals of any designated foreign country and the making and receipt of payments, transfers of credit, and transfers of such securities which are necessary incidents of any such purchase or sale are hereby authorized provided the following terms and conditions are complied with: 

(1)     In the case of the purchase of securities, the securities purchased shall be held in an account in a banking institution within the United States in the name of the national whose account was debited to purchase such securities; and 
(2)     In the case of the sale of securities, the proceeds of the sale shall be credited to an account in the name of the national for whose account the sale was made and in the banking institution within the United States which held the securities of such national. 

(b)     This section does not authorize the crediting of the proceeds of the sale of securities held in a blocked account or a subaccount thereof, to a blocked account or subaccount under any name or designation which differs from the name or designation of the specific blocked account or subaccount in which such securities were held. 
(c)     Securities issued or guaranteed by the Government of the United States or any State, territory, district, county, municipality, or other political subdivision thereof (including agencies and instrumentalities of the foregoing) need not be purchased or sold on a national securities exchange, but purchases or sales of such securities shall be made at market value and pursuant to all other terms and conditions prescribed in this section. 

500.514   Payment of dividends and interest on and redemption and collection of securities. (a)     The payment to, and receipt by, a banking institution within the United States of funds or other property representing dividends or interest on securities held by such banking institution in a blocked account is hereby authorized provided the funds or other property are credited to or deposited in a blocked account in such banking institution in the name of the national for whose account the securities were held. Not withstanding 500.202, this paragraph authorizes the foregoing transactions although such securities are registered or inscribed in the name of any designated national and although the national in whose name the securities are registered or inscribed may not be the owner of such blocked account. 
(b)     The payment to, and receipt by, a banking institution within the United States of funds payable in respect of securities (including coupons) presented by such banking institution to the proper paying agents within the United States for redemption or collection for the account and pursuant to the authorization of nationals of any designated country is hereby authorized provided the proceeds of the redemption or collection are credited to a blocked account in such banking institution in the name of the national for whose account the redemption or collection was made. 
(c)     The performance of such other acts, and the effecting of such other transactions, as may be necessarily incident to any of the foregoing, are also hereby authorized. 
(d)     This section does not authorize the crediting of the proceeds of the redemption or collection of securities (including coupons) held a blocked account or a subaccount thereof, or the income derived from such securities to a blocked account or subaccount under any name or designation which differs from the name or designation of the specific blocked account or subaccount in which such securities were held. 
(e)     This section does not authorize any issuer or other obligor, with respect to a security, who is a designated national, to make any payment, transfer or withdrawal. 

500.515   Transfers of securities to blocked accounts in domestic banks. 
(a)     Transactions ordinarily incident to the transfer of securities from a blocked account in the name of any person to a blocked account in the same name in a domestic bank are hereby authorized provided such securities shall not be transferred from any blocked account if such transfer represents, directly or indirectly, a transfer of the interest of a designated national to any other country or person. 
(b)     This section does not authorize the transfer of securities held in a blocked account or subaccount thereof to a blocked account or subaccount 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. 

[32 FR 10846, July 25, 1967] 
500.516   Voting and soliciting of proxies on securities. Notwithstanding 500.202, the voting and the soliciting of proxies or other authorizations is authorized with respect to the voting of securities issued by a corporation organized under the laws of the United States or of any State, territory, or district thereof, in which a designated national has any interest. 
500.517   Access to safe deposit boxes under certain conditions. (a)     Access to any safe deposit box leased to a designated national or containing property in which any designated national has an interest, and the deposit therein or removal therefrom of any property is hereby authorized, provided the following terms and conditions are complied with: 

(1)     Access shall be permitted only in the presence of an authorized representative of the lessor of such box; and 
(2)     In the event that any property in which any designated national has any interest is to be removed from such box, access shall be permitted only in the presence of an authorized representative of a banking institution within the United States, which may be the lessor of such box, which shall receive such property into its custody immediately upon removal from such box and which shall hold the same in a blocked account under an appropriate designation indicating the interest therein of designated nationals. 

(b)     The terms and conditions set forth in paragraph (a) of this section shall not apply to access granted to a representative of the Office of Alien Property pursuant to any rule, regulation or order of such Office. 
(c)     The lessee or other person granted access to any safe deposit box pursuant to this section (except an agent or representative of the Office of Alien Property) shall furnish to the lessor a certificate in triplicate that he has filed or will promptly file a report with respect to such box, if leased to a designated national, and with respect to all property contained in the box to which access is had in which any designated national has an interest. The lessor shall transmit two copies of such certificate to the Treasury Department, Washington, D.C. The certificate is required only on the first access to the box. In case a report on Form TFR - 603 was not made, a report is hereby required to be filed. All reports made pursuant to this section shall bear on their face or have securely attached to them a statement reading, ``this report is filed pursuant to 31 CFR 500.517''. 

[15 FR 9040, Dec. 19, 1950, as amended at 35 FR 4045, Mar. 4, 1970] 
500.518   Payments for living, traveling, and similar personal expenses in the United States. (a)     Payments and transfers of credit in the United States from blocked accounts in domestic banking institutions held in the name of an individual within the United States to or upon the order of such individual are hereby authorized provided the following terms and conditions are complied with: 

(1)     Such payments and transfers of credit may be made only for the living, traveling, and similar personal expenses in the United States of such individual or his family; and 
(2)     The total of all such payments and transfers of credit made under this section from the accounts of such individual may not exceed $250 in any one calendar month. 

(b)     This section does not authorize any payment or transfer from an account in which a specially designated national has an interest. 

[28 FR 6973, July 9, 1963] 
500.519   Limited payments from accounts of United States citizens abroad. (a)     Payments and transfers of credit from blocked accounts for expenditures within the United States or the authorized trade territory of any citizen of the United States who is within any foreign country are hereby authorized provided the following terms and conditions are complied with: 

(1)     Such payments and transfers shall be made only from blocked accounts in the name of, or in which the beneficial interest is held by, such citizen or his family; and 
(2)     The total of all such payments and transfers made under this section shall not exceed $1,000 in any one calendar month for any such citizen or his family. 

(b)     This section does not authorize any remittance to any designated foreign country or, any payment, transfer, or withdrawal which could not be effected without a license by a person within the United States who is not a national of any designated foreign country. 

500.520   Payments from accounts of United States citizens in employ of United States in foreign countries and certain other persons. (a)     Banking institutions within the United States are hereby authorized to make all payments, transfers and withdrawals from accounts in the name of citizens of the United States while such citizens are within any foreign country in the course of their employment by the Government of the United States. 
(b)     Banking institutions within the United States are also hereby authorized to make all payments, transfers and withdrawals from accounts in the name of members of the armed forces of the United States and of citizens of the United States accompanying such armed forces in the course of their employment by any organization acting on behalf of the Government of the United States while such persons are within any foreign country. 
(c)     This section is deemed to apply to the accounts of members of the armed forces of the United States and of citizens of the United States accompanying such armed forces in the course of their employment by the Government of the United States or by any organization acting on its behalf even though they are captured or reported missing. 

500.521   Certain remittances for necessary living expenses. (a)     Remittances by any person to any individual who is a resident of a foreign country and is within that foreign country are hereby authorized on the following terms and conditions: 

(1)     Such remittances are made only for the necessary living expenses of the payee and his household and do not exceed $100 in any one calendar month to any one household; 
(2)     Such remittances are not made from a blocked account other than from an account in a banking institution within the United States in the name of, or in which the beneficial interest is held by, the payee or members of his household; 
(3)     Such remittances are not made from a blocked account which is blocked pursuant to Executive order 8389, as amended; 
(4)     If the payee is within any designated foreign country, such remittances must be made through a domestic bank and any domestic bank is authorized to effect such remittances which, however, may be effected only by the payment of the dollar amount of the remittance to a domestic bank for credit to a blocked account in the name of a banking institution within such country. 

(b)     This section does not authorize any remittance to, or for the benefit of, a specially designated national who is not within a designated foreign country. 
(c)     This section does not authorize any remittance to an individual for the purpose of defraying the expenses of a person not constituting part of his household. 
(d)     As used in this section, the term ``household'' shall mean: 

(1)     Those individuals sharing a common dwelling as a family; or 
(2)     Any individual not sharing a common dwelling with others as a family. 

[28 FR 6974, July 9, 1963] 
500.522   Certain remittances to United States citizens in foreign countries. 
(a)     Remittances by any person through any domestic bank to any individual who is a citizen of the United States within any foreign country are hereby authorized and any domestic bank is authorized to effect such remittances, on the following terms and conditions: 

(1)     Such remittances do not exceed $1,000 in any one calendar month to any payee and his household and are made only for the necessary living and traveling expenses of the payee and his household, except that an additional sum not exceeding $1,000 may be remitted once to such payee if such sum will be used for the purpose of enabling the payee or his household to return to the United States; 
(2)     Such remittances are not made from a blocked account other than from an account in a banking institution within the United States in the name of, or in which the beneficial interest is held by, the payee or members of his household; 
(3)     If the payee is within any designated foreign country, such remittances must be made through a domestic bank and must be effected by the payment of the dollar amount of remittance to a domestic bank for credit to a blocked account in the name of a banking institution within such country. 

(b)     This section does not authorize any remittance to an individual for the purpose of defraying the expenses of a person not constituting part of his household. 
(c)     As used in this section, the term ``household'' shall mean: 

(1)     Those individuals sharing a common dwelling as a family; or 
(2)     Any individual not sharing a common dwelling with others as a family. 

500.523   Transactions incident to the administration of decedents' estates. (a)     The following transactions are authorized in connection with the administration of the assets in the United States of any blocked estate of a decedent: (1)     The appointment and qualification of a personal representative; (2)     The collection and preservation of such assets by such personal representative and the payment of all costs, fees and charges in connection therewith; and 
(3)     The payment by such personal representative of funeral expenses and expenses of the last illness.
(4)     Any transfer of title pursuant to a valid testamentary disposition.

This paragraph does not authorize any unblocking or distribution of estate assets to a designated national.
(b)     In addition to the authorization contained in paragraph (a) of this section, all other transactions incident to the administration of assets situated in the United States of any blocked estate of a decedent are authorized if: 

(1)     The decedent was not a national of a designated foreign country at the time of his death; 
(2)     The decedent was a citizen of the United States and a national of a designated foreign country at the time of his death solely by reason of his presence in a designated foreign country as a result of his employment by, or service with the United States Government; or 
(3)     The assets are unblocked under a specific license issued pursuant to 500.568.(c)     Any property or interest therein distributed pursuant to this section to a designated national shall be regarded for the purpose of this chapter as property in which such national has an interest and shall accordingly be subject to all the pertinent sections of this chapter. Any payment or distribution of any funds, securities or other choses in action to a designated national shall be made by deposit in a blocked account in a domestic bank or with a public officer, agency, or instrumentality designated by a court having jurisdiction of the estate. Any such deposit shall be made in one of the following ways: 

(1)     In the name of the national who is the ultimate beneficiary thereof; 
(2)     In the name of a person who is not a national of a designated foreign country in trust for the national who is the ultimate beneficiary; or 
(3)     Under some other designation which clearly shows the interest therein of such national. 

(d)     Any distribution of property authorized pursuant to this section may be made to a trustee of any testamentary trust or to the guardian of an estate of a minor or of an incompetent. 
(e)     This section does not authorize: 

(1)     Any designated national to act as personal representative or co-representative of any estate; 
(2)     Any designated national to represent, directly or indirectly, any person who has an interest in an estate; 
(3)     Any designated national to take distribution of any property as the trustee of any testamentary trust or as the guardian of an estate of a minor or of an incompetent; or 
(4)     Any transaction which could not be effected if no designated national had any interest in such estate. 

(f)     Any payment or distribution authorized by this section may be deposited in a blocked account in a domestic bank or with a public officer, agency, or instrumentality designated by the court having jurisdiction of the estate in one of the ways prescribed in paragraphs c (1), (2) or (3) of this section, but this section does not authorize any other transaction directly or indirectly at the request, or upon the instructions of any designated national. 

[15 FR 9040, Dec. 19, 1950, as amended at 54 FR 5232, Feb. 2, 1989]
500.524   Payment from, and transactions in the administration of certain trusts and estates. (a)     Any bank or trust company incorporated under the laws of the United States, or of any State, territory, possession, or district of the United States, or any private bank subject to supervision and examination under the banking laws of any State of the United States, acting as trustee of a trust created by gift, donation or bequest and administered in the United States, or as legal representative of an estate of an infant or incompetent administered in the United States, in which trust or estate one or more persons who are designated nationals have an interest, beneficial or otherwise, or are co-trustees or co-representatives, is hereby authorized to engage in the following transactions:

(1)     Payments of distributive shares of principal or income to all persons legally entitled thereto upon the condition prescribed in paragraph (b) of this section. 
(2)     Other transactions arising in the administration of such trust or estate which might be engaged in if no national of a designated foreign country were a beneficiary, co-trustee or co-representative of such trust or estate upon the condition prescribed in paragraph (b) of this section. 

(b)     Any payment or distribution of any funds, securities or other choses in action to a national of a designated foreign country under this section shall be made by deposit in a blocked account in a domestic bank in the name of the national who is the ultimate beneficiary thereof. 
(c)     Any payment or distribution into a blocked account in a domestic bank in the name of any such national of a designated foreign country who is the ultimate beneficiary of and legally entitled to any such payment or distribution is authorized by this section, but this section does not authorize such trustee or legal representative to engage in any other transaction at the request, or upon the instructions, of any beneficiary, co-trustee or co-representative of such trust or estate or other person who is a national of any designated foreign country. 
(d)     The application of this section to trusts is limited to trusts established by gift, donation, or bequest from individuals or entities to benefit specific heirs, charitable causes, and similar beneficiaries. This section does not apply to trusts established for business or commercial purposes, such as sinking funds established by an insurer of securities in order to secure payment of interest or principal due on such securities.

[15 FR 9040, Dec. 19, 1950, as amended at 54 FR 5232, Feb. 2, 1989]
500.525   Certain transfers by operation of law. (a)     The following transfers by operation of law are hereby authorized: (1)     Any transfer of any dower, curtesy, community property, or other interest of any nature whatsoever provided that such transfer arises solely as a consequence of the existence or change of marital status; (2)     Any transfer to any person by intestate succession. 
(3)     Any transfer to any person as administrator, executor, or other fiduciary by reason of any testamentary disposition; and 
(4)     Any transfer to any person as administrator, executor, or fiduciary by reason of judicial appointment or approval in connection with any testamentary disposition or intestate succession. 

(b)     Except to the extent authorized by 500.523, 500.568 or by any other license or authorization contained in or issued pursuant to this chapter no transfer to any person by intestate succession and no transfer to any person as administrator, executor, or other fiduciary by reason of any testamentary disposition, and no transfer to any person as administrator, executor, or fiduciary by reason of judicial appointment or approval in connection with any testamentary disposition or intestate succession shall be deemed to terminate the interest of the decedent in the property transferred if the decedent was a designated national. 
(c)     This section does not authorize any dealings in property by any person. 

[25 FR 1910, Mar. 4, 1960, as amended at 54 FR 5232, Feb. 2, 1989] 
500.526   Transactions involving blocked life insurance policies. (a)     The following transactions are hereby authorized: (1)     The payment of premiums and interest on policy loans with respect to any blocked life insurance policy; (2)     The issuance, servicing or transfer of any blocked life insurance policy in which the only blocked interest is that of one or more of the following: (i)     A member of the armed forces of the United States or a person accompanying such forces (including personnel of the American Red Cross, and similar organizations); 
(ii)    An officer or employee of the United States; or 
(iii)   A citizen of the United States resident in a designated foreign country; and 

(3)     The issuance, servicing or transfer of any blocked life insurance policy in which the only blocked interest (other than that of a person specified in paragraph (a) (2) of this section) is that of a beneficiary. 

(b)     Paragraph (a) of this section does not authorize: 

(1)     Any payment to the insurer from any blocked account except a blocked account of the insured or beneficiary, or 
(2)     Any payment by the insurer to a national of a designated foreign country unless payment is made by deposit in a blocked account in a domestic bank in the name of the national who is the ultimate beneficiary thereof. 

(c)     The application, in accordance with the provisions of the policy or the established practice of the insurer, of the dividends, cash surrender value, or loan value, of any blocked life insurance policy is also hereby authorized for the purposes of: 

(1)     Paying premiums; 
(2)     Paying policy loans and interest thereon; 
(3)     Establishing paid-up insurance; or 
(4)     Accumulating such dividends or values to the credit of the policy on the books of the insurer. 

(d)     As used in this section: (1) The term ``blocked life insurance policy'' shall mean any life insurance policy or annuity contract, or contract supplementary thereto, in which there is a blocked interest. 

(2)     Any interest of a national of a designated foreign country shall be deemed to be a ``blocked interest.'' 
(3)     The term ``servicing'' shall mean the following transactions with respect to any blocked life insurance policy: 

(i)     The payment of premiums, the payment of loan interest, and the repayment of policy loans; 
(ii)    The effecting by a life insurance company or other insurer of loans to an insured; 
(iii)   The effecting on behalf of an insured of surrenders, conversions, modifications, and reinstatements; and 
(iv)    The exercise or election by an insured of non-forfeiture options, optional modes of settlement, optional disposition of dividends, and other policy options and privileges not involving payment by the insurer. 

(4)     The term ``transfer'' shall mean the change of beneficiary, or the assignment or pledge of the interest of an insured in any blocked life insurance policy subsequent to the issuance thereof. 

(e)     This section does not authorize any transaction with respect to any blocked life insurance policy issued by a life insurance company or other insurer which is a national of a designated foreign country or which is not doing business or effecting insurance in the United States. 

500.527   Certain transactions with respect to United States patents, trademarks, and copyrights. (a)     There are hereby authorized: (1) The filing in the United States Patent Office of applications for letters patent and for trademarks registration; (2)     The making and filing in the United States Copyright Office of applications for registration or renewal of copyrights; 
(3)     The prosecution in the United States Patent Office of applications for letters patent and for trademarks registration; 
(4)     The receipt of letters patent or trademark registration certificates or copyright registration or renewal certificates granted pursuant to any such applications in which any designated national has at any time on or since the ``effective date'' had any interest. 

(b)     This section further authorizes, subject to the terms and conditions prescribed in paragraphs c and (d) of this section, the execution and recording of any instrument recordable in the United States Patent Office or the United States Copyright Office which affects title to or grants any interest in, including licenses under, any United States letters patent, trademark registration, copyright or renewal thereof, or application therefor, in which a designated national, who is such a national solely by reason of his relationship to an occupied area, has at any time on or since the ``effective date'' had any interest, or which constitutes or evidences a transaction made by, or on behalf of, or pursuant to the direction of or with such a designated national, or if any of the parties to such instrument is such a designated national. 
(c)     Any such instrument the recording or the execution and recording of which is authorized by paragraph (b) of this section shall be recorded in the United States Patent Office or in the United States Copyright Office within ninety days of the date of execution thereof or ninety days from the ``effective date'' whichever is the longer period, or within such further time as may be allowed by the Secretary of the Treasury. The person presenting such instrument for recording shall file therewith in the United States Patent Office or United States Copyright Office a statement that such instrument is being recorded in accordance with the provisions of this section. 
(d)     Any such instrument the recording or the execution and recording of which is authorized by paragraph (b) of this section may be set aside by the Secretary of the Treasury at any time within a period of three years from the date of recording except that the Secretary of the Treasury may in his discretion reduce such period of time with respect to any such instrument after the recording thereof, and further, the patents, trademarks, interests, applications, or rights thereunder so transferred may be vested by the Secretary of the Treasury. 
(e)     This section also authorizes the payment from blocked accounts or otherwise, of fees currently due to the United States Government in connection with any transactions authorized by this section. 
(f)     This section further authorizes the payment from blocked accounts or otherwise of the reasonable and customary fees and charges currently due to attorneys or representatives within the United States in connection with the transactions referred to in paragraphs (a), (b), and (e) of this section, provided that such payment shall not exceed (1) $100 for the preparation, filing, and prosecution of any letters patent; or (2) $50 for the preparation, filing and prosecution of any application for a trademark registration; or (3) $25 for the securing and registration of any copyright; or (4) $35 for the preparation and filing of any amendment to a pending application for letters patent or for a trademark registration. 
(g)     This section also authorizes the payment of a nominal consideration not exceeding one dollar, to any party to an instrument executed or recorded hereunder with respect to the property affected by such instrument, as long as such instrument is subject to being set aside in accordance with paragraph (d) of this section. 

500.528   Certain transactions with respect to blocked foreign patents, trademarks and copyrights authorized. (a)     The following transactions by any person who is not a designated national are hereby authorized: (1)     The filing and prosecution of any application for a blocked foreign patent, trademark or copyright, or for the renewal thereof; 
(2)     The receipt of any blocked foreign patent, trademark or copyright; 
(3)     The filing and prosecution of opposition or infringement proceedings with respect to any blocked foreign patent, trademark, or copyright, and the prosecution of a defense to any such proceedings; 
(4)     The payment of fees currently due to the government of any foreign country, either directly or through an attorney or representative, in connection with any of the transactions authorized by paragraphs (a) (1), (2) and (3) of this section or for the maintenance of any blocked foreign patent, trademark or copyright; and 
(5)     The payment of reasonable and customary fees currently due to attorneys or representatives in any foreign country incurred in connection with any of the transactions authorized by paragraphs (a) (1), (2), (3) or (4) of this section. 

(b)     Payments effected pursuant to the terms of paragraphs (a) (4) and (5) of this section may not be made from any blocked account. 
(c)     As used in this section the term ``blocked foreign patent, trademark, or copyright'' shall mean any patent, petty patent, design patent, trademark or copyright issued by any foreign country, in which a designated foreign country or national thereof has an interest, including any patent, petty patent, design patent, trademark, or copyright issued by a designated foreign country. 

[15 FR 9040, Dec. 19, 1950, as amended at 50 FR 27437, July 3, 1985]


500.529   Powers of attorney. (a)     No power of attorney, whether granted before or after the ``effective date'' shall be invalid by reason of any of the provisions of this chapter with respect to any transaction licensed by or pursuant to the provisions of this chapter. 
(b)     This section does not authorize any transaction pursuant to a power of attorney if such transaction is prohibited by 500.201 and is not otherwise licensed or authorized by or pursuant to this chapter. (c)     This section does not authorize the creation of any power of attorney in favor of any person outside of the United States or the exportation from the United States of any power of attorney. 

500.530   Exportation of powers of attorney or instructions relating to certain types of transactions. (a)     The exportation to any foreign country of powers of attorney or other instruments executed or issued by any person within the United States who is not a national of a designated foreign country, which are limited to authorizations or instructions to effect transactions incident to the following, are hereby authorized upon the condition prescribed in paragraph (b) of this section: 

(1)     The representation of the interest of such person in a decedent's estate which is being administered in any designated foreign country and the collection of the distributive share of such person in such estate; 
(2)     The maintenance, preservation, supervision or management of any property located in any designated foreign country in which such person has an interest; and 
(3)     The conveyance, transfer, release, sale or other disposition of any property specified in paragraph (a)(1) of this section or any real estate or tangible personal property if the value thereof does not exceed the sum of $5,000 or its equivalent in foreign currency. 

(b)     No instrument which authorizes the conveyance, transfer, release, sale or other disposition of any property may be exported under this section unless it contains an express stipulation that such authority may not be exercised if the value of such property exceeds the sum of $5,000 or the equivalent thereof in foreign currency. 
(c)     As used in this section, the term ``tangible personal property'' shall not include cash, bullion, deposits, credits, securities, patents, trademarks, or copyrights. 

500.533   Transactions incident to exportations to designated countries. (a)     All transactions ordinarily incident to the exportation of goods, wares and merchandise from the United States to any person within a designated foreign country are hereby authorized, provided the following terms and conditions are complied with: 

(1)     The exportation is licensed or otherwise authorized by the Department of Commerce under the provisions of the Export Administration Act of 1969 (section 4, 88 Stat. 842, 50 U.S.C. App. 2403); 
(2)     Banking institutions within the United States, prior to issuing, confirming or advising letters of credit, or accepting or paying drafts drawn, or reimbursing themselves for payments made, under letters of credit, or making any other payment or transfer of credit, in connection with any exportation pursuant to this section, or engaging in any other transaction herein authorized, shall satisfy themselves that:

(i)     Each such transaction is incident to a bona fide exportation and is customary in the normal course of business, and that the value of such exportation reasonably corresponds with the sums of money involved in financing such transaction; and (ii) such exportation is made pursuant to all the terms and conditions of this section. 

(b)     This section does not authorize: 

(1)     The financing of any transaction from any blocked account; 
(2)     Any transaction involving, directly or indirectly, property in which any designated national, other than a person located in the country to which the exportation is consigned, has an interest, or has had an interest since the ``effective date''. 

[15 FR 9040, Dec. 19, 1950, as amended at 18 FR 2080, Apr. 14, 1953; 22 FR 10121, Dec. 18, 1957; 41 FR 16554, Apr. 20, 1976] 
500.535  Exchange of certain securities. (a)     Subject to the limitations and conditions of paragraph (b) of this section and notwithstanding 500.202 of this chapter, any banking institution within the United States is authorized to engage in the following transactions with respect to securities listed on a national securities exchange, including the withdrawal of such securities from blocked accounts: (1)     Exchange of certificates necessitated by reason of changes in corporate name, par value or capitalization, (2)     Exchanges of temporary for permanent certificates, (3)     Exchanges or deposits under plans of reorganization, 
(4)     Exchanges under refunding plans, or 
(5)     Exchanges pursuant to conversion privileges accruing to securities held. 

(b)     This section does not authorize the following transactions: 

(1)     Any exchange of securities unless the new securities and other proceeds, if any, received are deposited in the blocked account in which the original securities were held immediately prior to the exchange. 
(2)     Any exchange of securities registered in the name of any designated national, unless the new securities received are registered in the same name in which the securities exchanged were registered prior to the exchange. 
(3)     Any exchange of securities issued by a person engaged in the business of offering, buying, selling, or otherwise dealing, or trading in securities, or evidences thereof, issued by another person. 
(4)     Any transaction with respect to any security by an issuer or other obligor who is a designated national. 

[16 FR 767, Jan. 27, 1951] 
500.536   Certain transactions with respect to merchandise affected by 500.204. (a)     With respect to merchandise the importation of which is prohibited by 500.204, all Customs transactions are authorized except the following: (1)     Entry for consumption (including any appraisement entry, any entry of goods imported in the mails, regardless of value, and any other informal entries); (2)     Entry for immediate exportation; (3)     Entry for transportation and exportation; (4)     Withdrawal from warehouse; (5)     Transfer or withdrawal from a foreign-trade zone; or 
(6)     Manipulation or manufacture in a warehouse or in a foreign-trade zone. 

(b)     Paragraph (a) of this section is intended solely to allow certain restricted disposition of merchandise which is imported without proper authorization. Paragraph (a) does not authorize the purchase or importation of any merchandise. 
(c)     The purchase outside the United States for importation into the United States of merchandise specified in 500.204 (other than merchandise to which 500.204(a)(1) is applicable) and the importation of such merchandise into the United States (including transactions listed in paragraph (a) of this section) are authorized if there is presented to the collector of customs in connection with such importation the original of an appropriate certificate of origin as defined in paragraph (d) of this section and provided that the merchandise was shipped to the United States directly, or on a through bill of lading, from the country issuing the appropriate certificate of origin. 
(d)     A certificate of origin is appropriate for the purposes of this section only if: 

(1)     It is a certificate of origin the availability of which for Foreign Assets Control purposes has been announced in the Federal Register by the Office of Foreign Assets Control; and 
(2)     It bears a statement by the issuing agency referring to the Foreign Assets Control Regulations and stating that the certificate has been issued under procedures agreed upon with the United States Government. 

[18 FR 2080, Apr. 14, 1953, as amended at 19 FR 5483, Aug. 27, 1954; 20 FR 1379, Mar. 8, 1955; 40 FR 7649, Feb. 21, 1975; 50 FR 5753, Feb. 12, 1985; 54 FR 5232, Feb. 2, 1989] 
500.549   Proof of origin. Specific licenses for importation of goods the origin of which is North Korea, North Viet-Nam, Cambodia, or South Viet-Nam are generally not issued unless the applicant submits satisfactory documentary proof of the location of the goods outside North Korea, North Viet-Nam, Cambodia, or South Viet-Nam prior to the applicable effective date and of the absence of any interest of North Korea, North Viet-Nam, Cambodia, or South Viet-Nam in the goods at all times on or since that date. Since the type of documents which would constitute satisfactory proof varies depending upon the facts of the particular case, it is not possible to state in advance the type of documents required. However, it has been found that affidavits, statements, invoices, and other documents prepared by manufacturers, processors, sellers or shippers cannot be relied on and are therefore not by themselves accepted by the Office of Foreign Assets Control as satisfactory proof of origin. Independent corroborating documentary evidence, such as insurance documents, bills of lading, etc., may be accepted as satisfactory proof. 
[41 FR 16555, Apr. 20, 1976] 
500.550  Transactions related to information and informational materials.(a)     All financial and other transactions directly incident to the importation or exportation of information or informational materials as defined in 500.332 of this part are authorized.(b)     Transactions relating to the dissemination of information or informational materials are authorized, including remittance of royalties paid for information or informational materials that are reproduced, translated, subtitled, or dubbed. This section does not authorize the remittance of royalties or other payments relating to works not yet in being, or for marketing and business consulting services, or artistic or other substantive alteration or enhancements to information or informational materials, as provided in 500.206c. [54 FR 5232, Feb. 2, 1989, as amended at 60 FR 8934, Feb. 16, 1995]500.551   Reimports. Specific licenses are issued for reimportation of merchandise subject to 500.204 on proof of the export of the identical merchandise from the United States. Persons planning to export any such merchandise for exhibition, repair, or for any other purpose should first ascertain that reimportation will be authorized. Generally, reimportation is authorized only if Customs Form 4455 was completed at the time of export. 
[40 FR 7650, Feb. 21, 1975] 
500.552   Research samples. Specific licenses are issued for importation of commodities subject to 500.204 for bona fide research purposes in sample quantities only. [40 FR 7650, Feb. 21, 1975] 500.553   Prior contractual commitments not a basis for licensing. Specific licenses are not issued on the basis that an unlicensed firm commitment or payment has been made in connection with a transaction prohibited by 500.204. Contractual commitments to engage in transactions subject to the prohibitions in 500.204 should not be made, unless the contract specifies that the transaction is authorized by a general license or that it is subject to the issuance of a specific Foreign Assets Control license. [40 FR 7650, Feb. 21, 1975] 500.554   Gifts of North Korean, North Vietnamese, Cambodian, or South Vietnamese origin. (a)     Except as stated in paragraph (b) of this section and in 500.550, specific licenses are not issued for the importation of North Korean, North Vietnamese, Cambodian, or South Vietnamese origin goods sent as gifts to persons in the United States or acquired abroad as gifts by persons entering the United States. However, licenses are issued, upon request, for the return of such goods to the donors in countries other than North Korea, North Viet-Nam, Cambodia, or South Viet-Nam. 
(b)     Specific licenses are issued for the importation directly from North Korea, North Viet-Nam, Cambodia, or South Viet-Nam:

(1)     Of goods which are claimed by the importer to have been sent as a bona fide gift and (2) of goods which are claimed to have been acquired in North Korea, North Viet-Nam, Cambodia, or South Viet-Nam as a bona fide gift, subject to the conditions that:

(i)     The goods are of small value, and
(ii)    There is no reason to believe that there is, or has been since the applicable effective date, any direct or indirect financial or commercial benefit to North Korea, North Viet-Nam, Cambodia, or South Viet-Nam or nationals thereof from the importation. 

[41 FR 16555, Apr. 20, 1976] 
500.556   Joint bank accounts. Specific licenses are issued unblocking a portion of or all of a blocked joint bank account where a non-blocked applicant claims beneficial ownership, as follows: (a)     Joint bank account, without survivorship provisions. Specific licenses are issued unblocking only that amount with respect to which the applicant is able to prove beneficial ownership by documentary evidence independent of his assertions of interest. 
(b)     Joint bank account, with survivorship provision. Specific licenses are issued unblocking an amount equivalent to that portion of the total amount to which the applicant would be entitled if the total were divided evenly among the persons in whose names the account is held (e.g. 50 percent where there are two names; 33\1/3\ percent where there are three names). Such licenses are issued on the basis of applicant's assertions of beneficial ownership interest without the requirement of independent evidence. 

[40 FR 7650, Feb. 21, 1975] 
500.557  Proceeds of insurance policies. (a)     Specific licenses are issued authorizing payment of the proceeds of blocked life insurance policies issued on the life of a North Korean, North Vietnamese, Cambodian, or South Vietnamese national, who died in one of those countries after the applicable effective date to certain beneficiaries licensed as unblocked nationals pursuant to 500.505, as follows: (1)     The applicant is a permanent resident of the United States or the authorized trade territory and is not a specially designated national; and 
(2)     No interest on the part of a designated national not licensed as an unblocked national exists in that portion of the funds to which the applicant is entitled. 

(b)     Applications for specific licenses under this section must include all of the following information: 

(1)     Proof of permanent residence in the United States or the authorized trade territory, to be established by the submission of documentation issued by relevant government authorities that must include at least two of the following documents: (i) passport; (ii) voter registration card; (iii) permanent resident alien card; or (iv) national identity card. Other documents tending to show residency, such as income tax returns, may also be submitted in support of government documentation, but will not suffice in and of themselves; and 
(2)     Proof of entitlement under the insurance policy to be established by a copy of the policy and an affidavit from an appropriate officer of a recognized insurance company acknowledging the legitimacy of the beneficiary's claim and the amount of the payment. 

(c)     Any document provided pursuant to this section that is not written in the English language must be accompanied by a translation into English, as well as a certification by the translator that he is not an interested party to the proceeding, is qualified to make the translation, and has made an accurate translation of the document in question.

[54 FR 5232, Feb. 2, 1989]
500.558   Accounts of blocked partnerships. Specific licenses are issued unblocking partnerships established under the laws of North Korea, North Viet-Nam, Cambodia, or South Viet-Nam, as follows: (a)     Where all of the general partners and limited partners, if any, have emigrated from North Korea, North Viet-Nam, Cambodia, or South Viet-Nam and have established residence in the United States or in a country in the authorized trade territory, specific licenses are issued unblocking the assets of the partnership after deducting the total debt due creditors wherever located. 
(b)     Where one or more partners, whether general or limited, is in North Korea, North Viet-Nam, Cambodia, or South Viet-Nam (or elsewhere but still blocked), specific licenses are issued unblocking only the net pro rata shares of those partners who are resident in the United States or in a country in the authorized trade territory after deducting the total debt due creditors wherever located. 
(c)     The issuance of licensees is conditioned on the applicant furnishing the following information: 

(1)     Detailed information as to the status of all debts and other obligations of the blocked partnership, specifying the citizenship and residence of each creditor as of the applicable effective date, and as of the date of the application; 
(2)     The current status of the blocked partnership e.g., liquidated, nationalized, inoperative, etc.; 
(3)     A detailed description of all the partnership's assets, wherever located; and, 
(4)     A list of all partners, indicating whether they are general, limited, etc. and giving their citizenship and residence as of the applicable effective date and as of the date of filing of the application. 

[40 FR 7651, Feb. 21, 1975, as amended at 41 FR 16555, Apr. 20, 1976; 45 FR 7225, Jan. 31, 1980] 
500.559   Accounts of North Korean, North Vietnamese, Cambodian or South Vietnamese sole proprietorships. Specific licenses are issued unblocking sole proprietorships established under the laws of North Korea, North Viet-Nam, Cambodia, or South Viet-Nam if the proprietor has emigrated from those countries and established residence in the United States or a country in the authorized trade territory. Such licenses do not unblock any indebtedness of the proprietorship due to persons in North Korea, North Viet-Nam, Cambodia, or South Viet-Nam. 
[41 FR 16556, Apr. 20, 1976, as amended at 45 FR 7225, Jan. 31, 1980] 
500.560   Bank accounts of official representatives of foreign governments in North Korea, North Viet-Nam, Cambodia, or South Viet-Nam. 
Specific licenses are issued authorizing payments from accounts of official representatives of foreign governments in North Korea, North Viet-Nam, Cambodia, or South Viet-Nam for transactions which are not inconsistent with the purposes of any of the regulations in this chapter. 
[41 FR 16556, Apr. 20, 1976, as amended at 45 FR 7225, Jan. 31, 1980] 
500.561   Transfers of abandoned property under State laws. (a)     Except as stated in paragraphs (b) and c of this section, specific licenses are not issued authorizing the transfer of blocked property to State agencies under State laws governing abandoned property. 
(b)     Specific licenses are issued authorizing the transfer of blocked property, pursuant to the laws of the State governing abandoned property, to the appropriate State agency. Provided, That the State's laws are custodial in nature, i.e., there is no permanent transfer of beneficial interest to the State. Licenses require the property to be held by the State in accounts which are identified as blocked under the regulations. A separate index of these blocked assets is required to be maintained by the State agency. The requirements of this section for identification and separate indexing of blocked assets apply to all blocked assets held by State agencies and any licenses issued prior to the effective date of this section hereby are amended by the incorporation of such requirements.
(c)     To be eligible for a specific license under this section, the state agency must demonstrate that it has the statutory authority under appropriate state law to comply with the requirements of 500.205. Such a showing shall include an opinion of the State Attorney General that such statutory authority exists.[44 FR 11767, Mar. 2, 1979, as amended at 50 FR 27437, July 3, 1985] 500.562 [Reserved]500.563  Transactions incident to travel to and within North Korea.(a)     All transactions of persons subject to U.S. jurisdiction, including travel service providers, ordinarily incident to travel to, from, and within North Korea and to maintenance within North Korea are authorized. This authorization extends to transactions with North Korean carriers and those involving group tours, payment of living expenses, the acquisition of goods in North Korea for personal use, and normal banking transactions involving currency drafts, charge, debit or credit cards, traveler's checks, or other financial instruments negotiated incident to personal travel.
(b)     The purchase of merchandise in North Korea by persons subject to U.S. jurisdiction, and importation as accompanied baggage, is limited to goods with a foreign market value not to exceed $100 per person for personal use only. Such merchandise may not be resold. This authorization may be used only once in every six consecutive months. As provided in 500.206 of this part, information and informational materials are exempt from this restriction.(c)     This section does not authorize any debit to a blocked account.[60 FR 8935, Feb. 16, 1995]500.564 [Reserved]500.565   Family remittances to nationals of Vietnam and Cambodia.
(a)     The remittances specified in this section are authorized to be made to any close relative of the remitter or of the remitter's spouse, provided that the relative is a national of Vietnam or Cambodia, is a resident of Vietnam, Cambodia, or a country to which private remittances to nationals are not generally prohibited pursuant to this chapter, and is not a specially designated national.
(b)     Remittances made pursuant to this section may be made only as follows:

(1)     For the support of the payee, or for the support of the payee and members of his household, in amounts not exceeding $300 in any consecutive 3-month period to any one payee or to any household; and
(2)     For the purpose of enabling the payee to emigrate from Vietnam or Cambodia, in an amount not exceeding $750, to be made only once to any one payee, provided that the payee is a resident of and within Vietnam or Cambodia.

(c)     The term close relative used with respect to any person means spouse, child, grandchild, parent, grandparent, uncle, aunt, brother, sister, nephew, niece or spouse, widow, or widower of any of the foregoing.
(d)     The term member of a household used with respect to any person means a close relative sharing a common dwelling with such person.
(e)     This section does not authorize remittances from blocked accounts.
(f)     Specific licenses may be issued authorizing a U.S. financial institution to establish direct correspondent banking relations with a Vietnamese or Cambodian bank or banks for the sole purpose of facilitating the remittance of funds authorized by this section.

[56 FR 20349, May 3, 1991] 
500.566  Certain transactions authorized on behalf of North Korean nationals incident to their travel and maintenance expenses.(a)     Except as provided in paragraph (b) of this section, the following transactions are authorized by or on behalf of a national of North Korea who enters the United States on a visa issued by the Department of State:(1)     All transactions ordinarily incident to travel to, from, and within the United States are authorized, including the importation into the United States of accompanied baggage for personal use;
(2)     All transactions ordinarily incident to travel and maintenance within the United States, including payment of living expenses and the acquisition of goods in the United States for personal use; and
(3)     Normal banking transactions involving foreign currency drafts, traveler's checks, or other instruments negotiated incident to personal travel in the United States,

(b)     This section does not authorize any debit to a blocked account.

(Sec. 5, 40 Stat. 415, as amended, 50 U.S.C. App. 5(b); 75 Stat. 445, 22 U.S.C. 2370(a); Proc. 3447, 27 FR 1065, 3 CFR, 1959 - 1963 Comp.; E.O. 9193, 7 FR 5205, 3 CFR, Cum. Supp., p. 1174; E.O. 9989, 13 FR 4891, 3 CFR, 1943 - 1948 Comp., p. 748)
[49 FR 24994, June 19, 1984, as amended at 55 FR 31179, Aug. 1, 1990; 58 FR 63084, Nov. 30, 1993; 60 FR 8935, Feb. 16, 1995]
500.567  U.S. assets of certain designated country corporations.
(a)     Specific licenses may be issued unblocking the net pro rata shares of individuals who are permanent residents of the United States or the authorized trade territory, and who are not specially designated nationals, in U.S.-located assets of corporations formed under the laws of countries designated in this part, after deducting the total debt due creditors for claims that accrued prior to the effectiveness date, in cases where all of the following conditions are met:

(1)     The assets were owned by, or accrued to, the corporation before the effective date of the regulations; 
(2)     The corporation did not carry on substantial business in the designated country under the management or control of the applicant(s) after the effective date;
(3)     In cases where the blocked assets purportedly have been nationalized by the designated country, compensation has not been paid to the applicant(s).

(b)     Applications for specific licenses under this section must include all of the following information:

(1)     A detailed description of the corporation, its by-laws, activities, distribution of shares, and its current status;
(2)     Proof of the permanent residence of the applicant(s) in the United States or the authorized trade territory.
(3)     A list of all officers, directors and shareholders of the corporation, giving the citizenship and the residence of each person as of the date of application;
(4)     A detailed description of all of the assets of the corporation, wherever located, including a statement of all known encumbrances or claims against them; and 
(5)     Detailed information regarding the status of all debts and other obligations of the corporation, specifying the citizenship and residence of each creditor on the effective date and on the date of the application.

[50 FR 33720, Aug. 21, 1985]
500.568  U.S. assets of blocked decedents. (a)     Specific licenses may be issued unblocking the net pro rata shares of certain heirs of designated nationals in U.S.-located estate assets, after deducting the total debt due creditors for claims that accrued prior to the effective date, in cases where all of the following conditions are met: 

(1)     The applicant is a permanent resident of the United States or the authorized trade territory and is not a specially designated national; and 
(2)     No interest on the part of a designated national not licensed as an unblocked national pursuant to 500.505 exists in that portion of the assets to which the applicant is entitled. (b)     Applications for specific licenses under this section must include all of the following information: 

(1)     Proof of permanent residence in the United States or the authorized trade territory, to be established by the submission of documentation issued by relevant government authorities that must include at least two of the following documents: (i) passport; (ii) voter registration card; (iii) permanent resident alien card; or (iv) national identity card. Other documents tending to show residency, such as income tax returns, may also be submitted in support of government documentation, but will not suffice in and of themselves; 
(2)     Proof of death of the designated national to be established by a death certificate; 
(3)     Proof of heirship, to be established by a copy of the decedent's duly executed will certified by a probate court, a court decree determining the heirs, or, failing the availability of such documents, copies of certificates establishing the relationship of the heir to the deceased, e.g., birth or marriage certificates; and 
(4)     A description of the assets involved, including interest due on blocked funds since April 1, 1979, the name and address of the institution in which the assets are held, the account or safe deposit box number, the name in which the assets are held and a statement of all known encumbrances or claims against them. 

(c)     Any document provided pursuant to this section that is not written in the English language must be accompanied by a translation into English, as well as a certification by the translator that he is not an interested party to the proceeding, is qualified to make the translation, and has made an accurate translation of the document in question.

[54 FR 5232, Feb. 2, 1989]
500.569 [Reserved]500.570   Cambodian property unblocked.All transactions otherwise prohibited by this part which involve property in which Cambodia or a national thereof has an interest, other than property blocked in the name of the Exchange Support Fund for the Khmer Republic, are authorized. [59 FR 60559, Nov. 25, 1994] 500.571   Transactions related to telecommunications authorized.
All transactions of U.S. common carriers incident to the receipt or transmission of telecommunications involving North Korea are authorized.
Note: Exports or reexports to North Korea 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 Regulations, 15 CFR parts 768 - 799.
[57 FR 58986, Dec. 14, 1992, as amended at 60 FR 8935, Feb. 16, 1995]


500.572  Humanitarian projects authorized. (a)     All transactions by non-governmental organizations incident to carrying out humanitarian projects in Vietnam are authorized. For purposes of this section, the term ``non-governmental organization'' shall mean any private voluntary organization accorded tax exempt status under 501c(3) of the Internal Revenue Code, as well as any other organization engaged in voluntary charitable assistance activities that receives funding from private sources, including but not limited to accredited degree-granting institutes of education, private foundations and research institutions. 
(b)     The non-governmental organization carrying out humanitarian projects in Vietnam pursuant to this authorization shall file an initial report within 10 business days after the formal commencement of U.S. activities on the project with the Office of Foreign Assets Control, Compliance Division, U.S. Department of the Treasury, 1500 Pennsylvania Avenue NW._Annex, Washington, DC 20220, stating: 

(1)     The name, address, and telephone number of the non-governmental organization, and the officer charged with supervision of the project in Vietnam; and 
(2)     The nature, scope, purpose, and location of the project in Vietnam. 

[57 FR 20766, May 15, 1992]
500.573  Provision of goods and services to meet basic human needs authorized. (a)     With respect to transactions not within the scope of the general license contained in 500.533 of this part, specific licenses may be issued on a case-by-case basis for all transactions incidental to the provision (by commercial sale or by donation) to Vietnam of goods or services to meet basic human needs. 

(1)     For purposes of this section, goods to meet basic human needs shall be defined by reference to the Humanitarian License Procedure set forth in 15 CFR 773.5 c and (d) and Supplement No. 7 to part 773 of the Export Administration Regulations. 
(2)     Services to meet basic human needs shall include those services related to health, food, clothing, shelter, and education. Such services are considered to extend beyond those of an emergency nature to encompass those that meet direct needs for mere subsistence. 

(b)     Note: Exports or reexports to Vietnam of U.S.-origin goods, or foreign goods containing U.S.-origin content or produced from U.S.-origin technical data, to meet basic human needs may require authorization from the U.S. Department of Commerce. (For information, please contact 202/377 - 0061.) 

[57 FR 20766, May 15, 1992]
500.574   Executory contracts and related transactions authorized.(a)     Executory contracts. (1) Persons subject to U.S. jurisdiction are authorized to enter into executory contracts with Vietnam or Vietnamese nationals, or executory contracts in which Vietnam or a Vietnamese national has an interest, the performance of which is contingent upon the lifting or modification of the embargo on Vietnam to permit such performance.(2)     Within 10 business days of signing an executory contract authorized pursuant to paragraph (a) of this section, the person subject to U.S. jurisdiction must file a copy of the contract with the Office of Foreign Assets Control, Compliance Programs Division, 1500 Pennsylvania Avenue, NW._Annex 2131, Washington, DC 20220, referencing the fact that the contract was entered into pursuant to 31 CFR 500.574(a).
(3)     Specific licenses will be issued on a case-by-case basis to authorize financial transactions such as the payment of deposits, earnest money, signing bonuses, and administrative and registration fees incident to the signature of specific executory contracts authorized pursuant to paragraph (a)(1) of this section. The number of the pertinent license must be referenced in all funds transfers and other banking transactions through banks subject to U.S. jurisdiction made in connection with the contract. 

(b)     Preparatory transactions. (1) Specific licenses will be issued authorizing commercial and financial transactions necessary to obtaining and preparing to perform executory contracts authorized pursuant to paragraph (a)(1) of this section. These commercial and financial transactions include:

(i)     Opening offices in Vietnam;
(ii)    Hiring staff;
(iii)   Writing and designing plans;
(iv)    Carrying out preliminary feasibility studies and engineering and technical surveys; and
(v)     Import, export, and service transactions incident to the foregoing. 

(2)     Specific licenses issued pursuant to paragraph (b)(1) of this section will, to the extent feasible, encompass commercial and financial transactions incident to the licensed commercial purpose or activity.

Note: Exports or reexports to Vietnam of goods and technical data, or of the direct products of technical data (regardless of U.S. content), in connection with activities licensed by FAC may require authorization from the U.S. Department of Commerce pursuant to the Export Administration Regulations, 15 CFR parts 768 - 799.
(3)     The number of the pertinent license must be referenced in all funds transfers and other banking transactions through banks subject to U.S. jurisdiction in connection with preparatory transactions under paragraphs (b) (1) an (2) of this section.

[57 FR 62230, Dec. 30, 1992]
500.575  Certain services to Vietnamese nationals authorized.(a)     Specific licenses may be issued on a case-by-case basis for the provision in the United States or a third country of business orientation or training services to Vietnamese nationals. The orientation or training program may pertain only to industrial or commercial processes, or to specific equipment and related technical data both of which are eligible for export under a general license to Country Group Y, as set forth in Supplement No. 1 to part 770 of the Export Administration Regulations, 15 CFR parts 768 - 799. Licenses issued pursuant to this section will not authorize Vietnamese participation in orientation and training programs with respect to specific equipment and related technical data that may not be exported under a general license to Country Group Y pursuant to the Export Administration Regulations. Training programs may involve instruction on the maintenance or operation of a particular product, but may not involve instruction in a product's design or manufacture. 

Note: The transfer of mass-market software and certain technical data eligible for export to most destinations under General License GTDU to Vietnamese nationals may require additional authorization from the U.S. Department of Commerce pursuant to the Export Administration Regulations.
(b)     Transactions directly incident to the travel and maintenance expenses of the Vietnamese nationals for purposes of orientation or training programs are authorized pursuant to 500.566. Payment of salaries or other fees to Vietnamese nationals participating in orientation or training programs is not authorized. (c)     Applications for specific licenses should be submitted by the orientation or training program sponsor and should include a full description of the program to be offered, including the participants, the identity of their employers, and the capacities in which the participants are employed. 

[58 FR 63084, Nov. 30, 1993]
500.576  Authorization of transactions concerning certain development projects in Vietnam.(a)     All transactions by persons subject to U.S. jurisdiction in connection with participation in development projects in Vietnam formally proposed or approved for execution, funding or sponsorship by the international institutions listed in appendix A to this part (``Qualified Projects'') are authorized. For purposes of this section, Qualified Projects include investment projects, structural adjustment lending, sector adjustment lending, International Monetary Fund balance-of-payments support, and general development assistance including grants, technical assistance, and loans.
(b)     Persons subject to U.S. jurisdiction may provide both goods and services to any party contracting to participate in a Qualified Project pursuant to the authorization contained in this section. 

(1)     Services may include financial, legal, consulting, insurance, shipping and other services. 
(2)     Persons subject to U.S jurisdiction may participate in Qualified Projects as suppliers, contractors, or subcontractors, and through joint ventures with third-country nationals and Vietnamese nationals.
(3)     Persons subject to U.S. jurisdiction may finance, or guarantee the performance of, activities of U.S. participants in a Qualified Project; co-financing of or lending to the Qualified Project itself by a person subject to U.S. jurisdiction may be authorized by specific license pursuant to 500.801.Illustrative examples of transactions covered by this section are set forth in 500.413.(c)     Except as otherwise authorized, persons subject to U.S. jurisdiction may not participate in development projects in Vietnam that are bilaterally funded and administered, or in projects or feasibility studies prior to formal proposal or approval by a qualified international institution for its involvement in the project or study. If a qualified international institution formally proposes but thereafter rejects, terminates, or abandons a project, the project shall no longer constitute a Qualified Project for purposes of this section. Except as otherwise specifically authorized pursuant to this part, persons subject to U.S. jurisdiction may not enter into any new commitments with respect to the project after the date of such rejection, termination, or abandonment. In addition, this section does not authorize:

(1)     the importation of Vietnamese-origin goods into the United States, except as required to honor service or warranty contracts associated with Qualified Projects; 
(2)     offshore transactions of persons subject to U.S. jurisdiction involving the sale of Vietnamese-origin goods between Vietnam and third countries, or among third countries;
(3)     flights into or out of Vietnam by aircraft owned or controlled by persons subject to U.S. jurisdiction, except when such persons transport, on aircraft they own, only passengers or cargo associated with a Qualified Project in which such persons are participating pursuant to this section;
(4)     the use in Vietnam of credit cards issued by a U.S. banking institution; or 
(5)     a debit to a blocked account.

Example: A Vietnamese highway project feasibility study financed by a third-country development agency is not a Qualified Project for purposes of this section. However, the feasibility study would be a Qualified Project, notwithstanding the bilateral funding, if the International Development Association had formally proposed the highway project as one under consideration for funding in its Monthly Operational Summary of World Bank and IDA Proposed Projects.
(d)     Within 10 business days after entering into an agreement for goods, services, financing, investment, or other participation in or related to a Qualified Project, the person(s) subject to U.S. jurisdiction entering into the agreement must register with the Office of Foreign Assets Control, Compliance Division, U.S. Department of the Treasury, 1500 Pennsylvania Avenue, NW_Annex, Washington, DC 20220. The registration shall reference the fact that the agreement was entered into pursuant to 31 CFR 500.576(a), and shall provide:

(1)     the name, address, telephone and facsimile numbers, and nationality of the person(s) subject to U.S. jurisdiction;
(2)     if the reporting party is not an individual, the name, address, telephone and facsimile numbers of the individual to contact for further information,
(3)     the name of the international institution listed in appendix A formally proposing, approving, executing, funding, or sponsoring the project;
(4)     the name and a brief description of the project in Vietnam (with any contract, project, request for bid, or other identifying number);
(5)     a brief description of the activity covered by the agreement, and the contract value; and
(6)     if the reporting party is a subcontractor, the prime contractor's name, address, and nationality, and those of all intermediate subcontractors.

Registration is not required of agencies of the Federal Government participating in Qualified Projects.
(e)     Upon registration meeting the requirements of paragraph (d) of this section, the Office of Foreign Assets Control will assign a registration number to the contract involved. This number should be referenced in all funds transfers and other banking transactions that take place through banks subject to U.S. jurisdiction, and in all U.S. export documents, in connection with the Qualified Project in Vietnam in order to avoid the blocking of such funds and to facilitate export transactions.
(f)     Annual reports must be filed with the Office of Foreign Assets Control on the anniversary of the issuance of a contract registration number, briefly describing the status of the project and any material changes in the information originally provided.

Note to 500.576: Exports or reexports to Vietnam of goods and technical data, or of the direct products of technical data (regardless of U.S. content), in connection with activities licensed by FAC may require authorization from the U.S. Department of Commerce pursuant to the Export Administration Regulations, 15 CFR parts 768 - 799.
[58 FR 68531, Dec. 28, 1993]
500.577  Authorization of bank transactions with respect to Vietnam by certain international organizations.All transactions by banking institutions subject to U.S. jurisdiction incidental to the processing of transactions of the international institutions identified in appendix A with reference to Vietnam are authorized.Example: A transfer to Vietnam or a Vietnamese national of funds from the U.S. account of a qualified international institution listed in appendix A to this part, for a program, rent or salary payment, is not blocked under this part.
[58 FR 68532, Dec. 28, 1993]
500.578  Vietnamese property unblocked.All transactions otherwise prohibited by this part which involve property in which a designated national of Vietnam has an interest are authorized.[60 FR 12886, Mar. 9, 1995]500.579   Authorization for release of certain blocked transfers by banking institutions subject to U.S. jurisdiction.
(a)     Banking institutions subject to the jurisdiction of the United States are authorized to unblock and return to the remitting party funds that were blocked pursuant to this part because of an interest of Vietnam or a Vietnamese national and that came into their possession or control by wire transfer or check remittance received after December 31, 1989, provided that no funds are released to the Government of Vietnam or any person in Vietnam.
(b)     Specific licenses may be issued authorizing the return to the remitting party of funds that were blocked by banking institutions subject to the jurisdiction of the United States pursuant to this part because of an interest of North Korea or a national thereof and that came into the banking institution's possession or control by wire transfer or check remittance, provided that no funds are released to the Government of North Korea, any entity controlled by the Government of North Korea, or any person located in, controlled from, or organized under the laws of North Korea. 

[59 FR 26602, May 23, 1994, as amended at 60 FR 8935, Feb. 16, 1995]
500.580  Authorization of U.S. dollar clearing transactions involving North Korea.Banking institutions organized under the laws of or located in the United States are authorized to process the transfer of funds in which North Korea or a national thereof has an interest. Persons subject to U.S. jurisdiction who are originators or ultimate beneficiaries of funds transfers, however, including U.S. banking institutions that are themselves originators or beneficiaries, may not initiate or receive such transfers if the underlying transactions to which they relate are prohibited pursuant to this part.
[60 FR 8935, Feb. 16, 1995]
500.581  Financial transactions related to diplomatic missions authorized.All financial transactions related to activities of North Korean diplomatic missions in the United States and U.S. diplomatic missions in North Korea are authorized, with the exception of transactions involving the North Korean mission to the United Nations in New York, which are subject to approval by specific license.
[60 FR 8935, Feb. 16, 1995]
500.582  Importation of North Korean-origin magnesite and magnesia.Specific licenses may be issued authorizing the importation into the United States of North Korean - origin magnesite or magnesia.[60 FR 8935, Feb. 16, 1995]500.583  News organization offices.(a)     Specific licenses may be issued authorizing all transactions necessary for the establishment and operation of news bureaus in North Korea by U.S. organizations whose primary purpose is the gathering and dissemination of news to the general public.
(b)     Transactions that will be authorized include but are not limited to those incident to the following:

(1)     leasing office space and securing related goods and services;
(2)     hiring North Korean nationals to serve as support staff;
(3)     purchasing North Korean-origin goods for use in the operation of the office; and
(4)     paying fees related to the operation of the office in North Korea.

(c)     Specific licenses may be issued authorizing transactions necessary for the establishment and operation of news bureaus in the United States by North Korean organizations whose primary purpose is the gathering and dissemination of news to the general public.
(d)     The number assigned to a specific license issued pursuant to this section should be referenced in all import documents, and in all funds transfers and other banking transactions through banking institutions organized or located in the United States, in connection with the licensed transactions to avoid the blocking of goods imported from North Korea and the interruption of the financial transactions with North Korea.

[60 FR 8935, Feb. 16, 1995]
500.584 Energy sector projects in North Korea.Specific licenses may be issued to permit persons subject to U.S. jurisdiction to participate in certain energy sector projects in North Korea in connection with that country's transition to light-water reactor (``LWR'') power plants. Transactions that may be licensed include those related to LWR power plant design, site preparation, excavation, delivery of essential nonnuclear components including turbines and generators, building construction, the disposition of spentnuclear fuel, and the provision of heavy oil to North Korea for heating and electricity generation pending completion of the first LWR unit.
[60 FR 8935, Feb. 16, 1995]



Subpart F_Reports 
500.601   Records. Every person engaging in any transaction subject to the provisions of this chapter shall keep a full and accurate record of each such transaction engaged in by him, 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. 
[24 FR 1984, Mar. 18, 1959] 
500.602   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 by the Secretary of the Treasury or any person acting under his direction or authorization complete information relative to any transaction subject to the provisions of this chapter or relative to any property in which any foreign country or any national thereof has any interest of any nature whatsoever, direct or indirect. The Secretary of the Treasury or any person acting under his direction may require that such reports 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, investigate any such transaction or property or any violation of the provisions of this chapter regardless of whether any report has been required or filed in connection therewith. 
500.603  Registration of persons holding blocked property subject to 500.201 or 500.202.(a)     Any individual holding property subject to 500.201 or 500.202 must register his or her name, address, and telephone number with the Blocked Assets Division, Office of Foreign Assets Control, U.S. Treasury Department, 1500 Pennsylvania Ave., NW._Annex, Washington, DC 20220, by the later of October 12, 1993, or 10 days after the date such property is received or becomes subject to 500.201 or 500.202. (b)     Any person, other than an individual, holding property subject to 500.201 or 500.202, must register the name, title, address, and telephone number of the individual designated to be responsible for the administration of blocked assets, from whom the Office of Foreign Assets Control can obtain information and records. The registration shall be sent to the Blocked Assets Division, Office of Foreign Assets Control, U.S. Treasury Department, 1500 Pennsylvania Ave., NW._Annex, Washington, DC 20220, by the later of October 12, 1993, or, unless notification is being given pursuant to 500.508, 10 days after the date such property is received and becomes subject to 500.201 or 500.202.(c)     Registrations with the Office of Foreign Assets Control pursuant to paragraphs (a) and (b) of this section must be renewed annually on or before July 1.[58 FR 47644, Sept. 10, 1993]500.611  Reports on Form TFR - 611.(a)     Requirement for report. Reports on Form TFR - 611 are hereby required to be filed on or before December 1, 1983, in the manner prescribed herein, by persons subject to the jurisdiction of the United States, with respect to all property held on June 30, 1983, to which 500.201 applies.(b)     Who must report. Reports on Form TFR - 611 must be filed by each of the following:(1)     Any person subject to the jurisdiction of the United States or his successor who, as of June 30, 1983, had in his custody, control or possession, directly or indirectly, in trust or otherwise, property subject to 500.201. This requirement includes State abandoned property and escheat agencies.
(2)     All business or non-business entities in the United States in which, as of June 30, 1983, there existed any interest, financial or otherwise, of any designated country or national thereof, as described in 500.201(d).(c)     Filing Form TFR - 611. Reports on Form TFR - 611 shall be prepared in triplicate. On or before December 1, 1983, two copies shall be sent in a set to the Office of Foreign Assets Control, Unit 611, Department of the Treasury, Washington, DC 20220. The third copy must be retained with the reporter's records.
(d)     Certification. Every report on Form TFR - 611 shall contain the certification required in part F 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 filed on Form TFR - 611 are regarded as privileged and confidential.

[48 FR 41158, Sept. 14, 1983] 
500.612   Registration of claims by U.S. nationals against Cambodia.
(a)     Requirement for reports. Reports are required to be filed on or before April 30, 1992, in the manner prescribed in this section, with respect to all outstanding claims held by U.S. nationals against the Government of Cambodia or a Cambodian government entity.
(b)     Who must report. A report must be submitted by each U.S. national having a claim outstanding against the Government of Cambodia or any Cambodian government entity. Reports should be submitted only by persons who were U.S. citizens or entities organized under the laws of a U.S. jurisdiction on the date of the loss.
(c)     How to register. U.S. nationals filing reports of claims must submit a letter containing the information required by paragraph (f) of this section. The letter must be sent to the Blocked Assets Division, Office of Foreign Assets Control, Department of the Treasury, Washington, DC 20220 to arrive by April 30, 1992. A copy of the submission should be kept by the claimant.
(d)     Certification. Every report shall bear the signature of the claimant or a person authorized by the claimant to sign the report. The signature will certify that to the best of the reporter's knowledge, the statements set forth in the report, including any papers attached to or filed with the report, are true and accurate, and that all material facts in connection with the report have been set forth.
(e)     Confidentiality of reports. Reports submitted pursuant to this section are regarded as privileged and confidential.
(f)     Contents of report. The report must contain the following information (with responses numbered to correspond with the numbers used below):

(1)     Identification of claimant.

(i)     Claimant's Legal Name.
(ii)    Claimant's Address.
(iii)   Telephone number of individual to contact regarding the report.
(iv)    If claimant is a naturalized citizen of the United States, state the place and date of naturalization.
(v)     If claimant is a corporation or business, state the place of incorporation and principal place of business.

(2)     Information concerning claim.

(i)     Amount of loss in U.S. dollars (indicate exchange or interest rates and relevant dates utilized for any currency translation or interest calculation).
(ii)    Describe the circumstances of the loss. Include the date of the loss and description of the property, business, obligation, injury or other damage which is the subject of the claim.

[57 FR 9053, Mar. 16, 1992] 

Subpart G_Penalties
Source: 59 FR 16776, Apr. 8, 1994, unless otherwise noted.
500.701  Penalties.(a)     Attention is directed to section 16 of the Trading with the Enemy Act (50 U.S.C. App. 16), which provides that:

(1)     Whoever shall willfully violate any provision of that act or any license, rule, or regulation issued thereunder, and whoever shall willfully violate, neglect, or refuse to comply with any order of the President issued in compliance with the provisions of that act shall, upon conviction, be fined not more than $1,000,000 or, if a natural person, be fined not more than $100,000 or imprisoned for not more than 10 years, or both; and the officer, director, or agent of any corporation who knowingly participates in such violation shall, upon conviction, be fined not more than $100,000 or imprisoned for not more than 10 years, or both.
(2)     Upon conviction, any property, funds, securities, paper, or other articles or documents, or any vessel, together with its tackle, apparel, furniture, and equipment, concerned in a violation of the act may be forfeited to the United States.
(3)     The Secretary of the Treasury may impose a civil penalty of not more than $50,000 on any person who violates any license, order, or regulation issued under that act;
(4)     Any property, funds, securities, papers, or other articles or documents, or any vessel, together with its tackle, apparel, furniture, and equipment, that is the subject of a violation subject to a civil penalty issued pursuant to paragraph (a)(3) of this section shall, at the discretion of the Secretary of the Treasury, be forfeited to the United States Government. 
(5)     The penalties described in paragraphs (a)(3) and (4) of this section may not be imposed for:

(i)     newsgathering, research, or the export or import of, or transmission of information or informational materials; or
(ii)    for clearly defined educational or religious activities, or activities of recognized human rights organizations, that are reasonably limited in frequency, duration, and number of participants.

Persons who engage in prohibited transactions related to the activities described in this paragraph may be subject to criminal penalties or other penalties as appropriate.
(6)     The penalties provided in the Trading with the Enemy Act are subject to increase pursuant to 18 U.S.C. 3571.

(b)     Attention is directed to 18 U.S.C. 1001, which provides that 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 5 years, or both. 

500.702  Prepenalty notice.(a)     When required: If the Director of the Office of Foreign Assets Control 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 Trading with the Enemy 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 and/or forfeiture. 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 describe the violation, specify the laws and regulations allegedly violated, and state the amount of the proposed monetary penalty and/or forfeiture.

(2) Right to make presentation or request a hearing. The prepenalty notice also shall inform the person of his right to make a written presentation within 30 days of mailing of the notice as to why a monetary penalty and/or forfeiture should not be imposed, or, if imposed, why it should be in a lesser amount than proposed. In addition or alternatively, within 30 days of mailing of the notice, the person may request an agency hearing conducted pursuant to 5 U.S.C. 554 - 557 to present his defenses to the imposition of a penalty or forfeiture and to offer any other information that he believes should be included in the agency record prior to a final determination concerning the imposition of a penalty or forfeiture.
(3)     Right to discovery. The prepenalty notice also shall inform the person of his right prior to a hearing to review documents relied on by the agency in making its determination to issue the prepenalty notice. The availability of such documents is subject to the agency's assertion of privileges normally available to the agency.

500.703  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 or forfeiture should not be imposed or, if imposed, why it should be in a lesser amount than proposed.

500.704  Hearing.(a)     The named person shall have 30 calendar days from the date of mailing of the prepenalty notice to request a hearing.(b)     The hearing shall be conducted in a manner consistent with 5 U.S.C. 554 - 557.

500.705  Penalty notice. (a)     No violation. If, after considering any presentations made in response to the prepenalty notice and any relevant facts, or the record of the hearing and the determination of the hearing officer, 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 or forfeiture pursuant to this part will be imposed.
(b)     Violation. If, after considering any presentations made in response to the prepenalty notice and any relevant facts, or the record of the hearing and the determination of the hearing officer, 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 and/or forfeiture to that person.

500.706  Judicial Review.Any person may seek judicial review as provided under 5 U.S.C. 702 for a penalty imposed pursuant to this part.
500.707  Referral to United States Department of Justice; administrative collection measures.In the event that the person named does not pay the penalty imposed pursuant to this part within 30 days of the mailing of the written notice of the imposition of the penalty, the matter may be referred for administrative collection measures or to the United States Department of Justice for appropriate action to recover the penalty in a civil suit in a Federal district court.



Subpart H_Procedures 
500.801   Licensing. (a)     General licenses. General licenses have been issued authorizing under appropriate terms and conditions, many types of transactions which are subject to the prohibitions contained in Subpart B. All such licenses are set forth in Subpart E. 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 are required to file reports and statements in the form and in accordance with the instructions specified in the 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 license. When an unusual problem is presented, the proposed action is cleared with the Director of the Office of Foreign Assets Control or such person as he may designate. 
(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 of 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, in such cases or classes of cases as the Secretary of the Treasury or the Office of Foreign Assets Control may determine, or licenses may be issued by the Secretary of the Treasury acting directly or through any person, agency, or instrumentality designated by him. 

(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. 

[15 FR 9040, Dec. 19, 1950, as amended at 57 FR 1387, Jan. 14, 1992]
500.802   Unblocking. Any interested person desiring the unblocking of accounts or other property on the ground that no person having an interest in the property is a designated national may file such an application. Such application shall be filed in the manner provided in 500.801(b) and shall contain full information in support of the administrative action requested. The applicant is entitled to be heard on the application. If the applicant desires a hearing arrangements should be made with Foreign Assets Control. 
500.803   Decision. The Office of Foreign Assets Control will advise each applicant of the decision respecting applications filed by him. 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. 
[32 FR 10846, July 25, 1967, as amended 57 FR 1387, Jan. 14, 1992] 
500.804   Records and reporting. Records are required to be kept by every person engaging in any transaction subject to the provisions of this chapter, as provided in 500.601. Reports may be required from any person with respect to any transaction subject to the provisions of this chapter or relative to any property in which any foreign country or any national thereof has any interest, as provided in 500.602. [35 FR 4045, Mar. 4, 1970] 
500.805   Amendment, modification, or revocation. The provisions of this chapter and any rulings, licenses, authorizations, instructions, orders, or forms issued thereunder may be amended, modified, or revoked at any time. 500.806   Rulemaking. 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 interpretative rules, general statement 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 rule making through submission of written data, views, or argument, with oral presentation in the discretion of the Director. In general, rule making 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. 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. 
500.807   Delegation by the Secretary of the Treasury. 
Any action which the Secretary of the Treasury is authorized to take pursuant to the Trading With the Enemy Act may be taken by any person to whom the Secretary of the Treasury has delegated authority so to act. 
500.808   Customs procedures; merchandise specified in 500.204. (a)     With respect to merchandise specified in 500.204, whether or not such merchandise has been imported into the United States, directors of customs shall not accept or allow any: 

(1)     Entry for consumption (including any appraisement entry, any entry of goods imported in the mails, regardless of value, or any other informal entries); 
(2)     Entry for immediate exportation; 
(3)     Entry for transportation and exportation; 
(4)     Withdrawal from warehouse; 
(5)     Transfer or withdrawal from a foreign-trade zone; or 
(6)     Manipulation or manufacture in a warehouse or in a foreign-trade zone, until either; 

(i)     A specific license pursuant to this chapter is presented; or, 
(ii)    Instructions from the Foreign Assets Control, authorizing the transaction are received. 

(b)     Whenever a specific license is presented to a director of customs 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 director of customs 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 director in respect to 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 should 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 director, 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 director to the Office of Foreign Assets Control, Treasury Department, Washington, DC 20220. 
(c)     Whenever a person shall present an entry, withdrawal or other appropriate document affected by this section and shall assert that no specific Foreign Assets Control license is required in connection therewith, the director of customs shall withhold action thereon and shall advise such person to communicate directly with the Office of Foreign Assets Control to request that instructions be issued to the director to authorize him to take action with regard thereto. 

[40 FR 7651, Feb. 21, 1975, as amended at 57 FR 1387, Jan. 14, 1992] 
500.809   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 Foreign Assets Control 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 1387, Jan. 14, 1992]



Subpart I_Miscellaneous Provisions
500.901   Paperwork Reduction Act notice.The information collection requirements in 500.517c, 500.527c, 500.549, 500.550 (a) and (b), 500.551, 500.552, 500.554 (a) and (b), 500.556 (a) and (b), 500.557, 500.558, 500.559, 500.560, 500.561, 500.562, and 500.801 have been approved by the Office of Management and Budget under the Paperwork Reduction Act and assigned control number 1505 - 0096. The information collection requirement in 500.612 has been approved by the Office of Management and Budget and assigned control number 1505 - 0131. The information collection requirements in 500.703 and 500.704 have been approved by the Office of Management and Budget and assigned control number 1505 - 0147.[50 FR 27437, July 3, 1985, as amended at 57 FR 6297, Feb. 24, 1992; 57 FR 9053, Mar. 16, 1992; 59 FR 16777, Apr. 8, 1994]Pt. 500, App. AAppendix A to Part 500 -- Qualifying International InstitutionsAsian Development Bank (ADB)Food and Agricultural Organization (FAO)International Bank for Reconstruction and Development (IBRD, the ``World Bank'')International Civil Aviation Organization (ICAO)
International Development Association (IDA)
International Finance Corporation (IFC)
International Fund for Agricultural Development (IFAD)
International Labor Organization (ILO)
International Maritime Organization (IMO)
International Monetary Fund (IMF)
Multilateral Investment Guarantee Association (MIGA)
UN Capital Development Fund (UNCDF)
UN Children's Fund (UNICEF)
UN Development Fund for Women (UNDFW)
UN Development Program (UNDP)
UN Economic & Social Commission for Asian and the Pacific (UNESCAP)
UN Education, Scientific and Cultural Organization (UNESCO)
UN Environment Program (UNEP)
UN Food Program (UNFP)
UN Industrial Development Organization (UNIDO)
UN International Drug Control Program (UNIDCP) 
UN Population Fund (UNPF)
World Health Organization (WHO)
World Meteorological Organization (WMO)
[58 FR 68532, Dec. 28, 1993]