PART 575 -- IRAQI SANCTIONS REGULATIONS ======================================= Subpart A -- Relation to this Part to Other Laws and Regulations Sec. 575.101 Relation of this part to other laws and regulations. Subpart B -- Prohibitions 575.201 Prohibited transactions involving property in which the Government of Iraq has an interest; transactions with respect to securities. 575.202 Effect of transfers violating the provisions of this part. 575.203 Holding of certain types of blocked property in interest-bearing accounts. 575.204 Prohibited importation of goods or services from Iraq. 575.205 Prohibited exportation and reexportation of goods, technology, or services to Iraq. 575.206 Prohibited dealing in property. 575.207 Prohibited transactions relating to travel to Iraq or to activities within Iraq. 575.208 Prohibited transportation-related transactions involving Iraq. 575.209 Prohibited performance of contracts. 575.210 Prohibited transfers of funds to the Government of Iraq or any person in Iraq. 575.211 Evasions; attempts; conspiracies. 575.212 Effective dates. Subpart C -- General Definitions 575.301 Blocked account; blocked property. 575.302 Effective date. 575.303 Entity. 575.304 Entity of the Government of Iraq; Iraqi Government Entity. 575.305 General license. 575.306 Government of Iraq. 575.307 Government of Kuwait. 575.308 Interest. 575.309 Iraq; Iraqi. 575.310 Kuwait; Kuwaiti. 575.311 Iraqi origin. 575.312 Iraqi person. 575.313 License. 575.314 Person. 575.315 Property; property interest. 575.316 Specific license. 575.317 Transfer. 575.318 UNSC Resolution 661. 575.319 United States. 575.320 U.S. financial institution. 575.321 United States person; U.S. person. 575.322 United States national; U.S. national. Subpart D -- Interpretations 575.401 Reference to amended sections. 575.402 Effect of amendment. 575.403 Termination and acquisition of an interest of the Government of Iraq. 575.404 Payments from blocked accounts to U.S. exporters and for other obligations prohibited. 575.405 Acquisition of instruments including bankers acceptances. 575.406 Extensions of credits or loans to Iraq. 575.407 Payments in connection with certain authorized transactions. 575.408 Offshore transactions. 575.409 Transshipments through the United States prohibited. 575.410 Imports of Iraqi goods from third countries; transshipments. 575.411 Exports to third countries; transshipments. 575.412 Release of Iraqi goods from bonded warehouse or foreign-trade zone. 575.413 Goods intended for export to Iraq. 575.414 Imports of Iraqi goods and purchases of goods from Iraq. 575.415 Setoffs prohibited. 575.416 Travel transactions for journalistic activity in Iraq. 575.417 [Reserved] 575.418 Transactions incidental to a licensed transaction. Subpart E -- Licenses, Authorizations, and Statements of Licensing Policy 575.501 Effect of license or authorization. 575.502 Exclusion from licenses and authorizations. 575.503 Payments and transfers to blocked accounts in U.S. financial institutions. 575.504 [Reserved] 575.505 Completion of certain transactions related to bankers acceptances authorized. 575.506 Payment by the Government of Iraq of obligations to persons within the United States authorized. 575.507 Certain exports to Iraq authorized. 575.508 Import of household and personal effects from Iraq authorized. 575.509 Payment and transfers authorized for shipments of oil under contract and en route to the United States prior to the effective date. 575.510 Payment and transfers authorized for goods and services exported to Iraq prior to the effective date. 575.511 Extensions or renewals authorized. 575.512 [Reserved] 575.513 Transactions related to telecommunications authorized. 575.514 Transactions related to mail authorized. 575.515 -- 75.516 [Reserved] 575.517 Procedures established for export transactions initiated prior to the effective date. 575.518 Certain standby letters of credit and performance bonds. 575.519 Certain imports for diplomatic or official personnel authorized. 575.520 Donations of food to relieve human suffering authorized. 575.521 Donations of medical supplies authorized. Subpart F -- Reports 575.601 Required records. 575.602 Reports to be furnished on demand. 575.603 [Reserved] 575.604 Reports on Form TDF 90 - 22.40. 575.605 Reports on Form TDF 90 - 22.41. 575.606 Registration of persons holding blocked property subject to 575.201. Subpart G -- Penalties 575.701 Penalties. 575.702 Prepenalty notice. 575.703 Presentation responding to prepenalty notice. 575.704 Penalty notice. 575.705 Referral to United States Department of Justice. Subpart H -- Procedures 575.801 Licensing. 575.802 Decisions. 575.803 Amendment, modification, or revocation. 575.804 Rulemaking. 575.805 Delegation by the Secretary of the Treasury. 575.806 Rules governing availability of information. Subpart I -- Paperwork Reduction Act 575.901 Paperwork Reduction Act notice. Authority: 50 U.S.C. 1701 - 1706; 50 U.S.C. 1601 - 1651; 22 U.S.C. 287c; Public Law 101 - 513, 104 Stat. 2047 - 55; 3 U.S.C. 301; E.O. 12722, 55 FR 31803, 3 CFR, 1990 Comp., p.294; E.O. 12724, 55 FR 33089, 3 CFR, 1992 Comp., p. 317. Source: 56 FR 2113, Jan. 18, 1991, unless otherwise noted. Subpart A -- Relation of This Part to Other Laws and Regulations 575.101 Relation of this part to other laws and regulations. (a) This part is separate from, and independent of, the other parts of this chapter. No license or authorization contained in or issued pursuant to those other parts authorizes any transaction prohibited by this part. No license or authorization contained in or issued pursuant to any other provision of law or regulation authorizes any transaction prohibited by this part. (b) No license or authorization contained in or issued pursuant to this part relieves the involved parties from complying with any other applicable laws or regulations. Subpart B -- Prohibitions 575.201 Prohibited transactions involving property in which the Government of Iraq has an interest; transactions with respect to securities. (a) Except as authorized by regulations, rulings, instructions, licenses, or otherwise, no property or interests in property of the Government of Iraq that are in the United States, that hereafter come within the United States, or that are or hereafter come within the possession or control of U.S. persons, including their overseas branches, may be transferred, paid, exported, withdrawn or otherwise dealt in. (b) Unless otherwise authorized by this part or by a specific license expressly referring to this section, the transfer (including the transfer on the books of any issuer or agent thereof), the endorsement or guaranty of signatures on, or any other dealing in any security (or evidence thereof) registered or inscribed in the name of the Government of Iraq and held within the possession or control of a U.S. person is prohibited, irrespective of the fact that at any time either at 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. 575.202 Effect of transfers violating the provisions of this part. (a) Any transfer after the effective date, which is in violation of any provision of this part or of any regulation, ruling, instruction, license, or other direction or authorization hereunder and involves any property in which the Government of Iraq has or has had an interest since such date, is null and void and shall not be the basis for the assertion or recognition of any interest in or right, remedy, power or privilege with respect to such property. (b) No transfer before 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 the Government of Iraq has an interest, or has had an interest since such date, unless the person with whom such property is held or maintained, prior to such date, had written notice of the transfer or by any written evidence had recognized such transfer. (c) Unless otherwise provided, an appropriate license or other authorization issued by or pursuant to the direction or authorization of the Director of the Office of Foreign Assets Control before, during, or after a transfer shall validate such transfer or render it enforceable to the same extent that it would be valid or enforceable but for the provisions of the International Emergency Economic Powers Act, the United Nations Participation Act, this part, and any ruling, order, regulation, direction, or instruction issued hereunder. (d) Transfers of property which otherwise would be null and void or unenforceable by virtue of the provisions of this section shall not be deemed to be null and void or unenforceable as to any person with whom such property was held or maintained (and as to such person only) in cases in which such person is able to establish to the satisfaction of the Director of the Office of Foreign Assets Control each of the following: (1) Such transfer did not represent a willful violation of the provisions of this part by the person with whom such property was held or maintained; (2) The person with whom such property was held or maintained did not have reasonable cause to know or suspect, in view of all the facts and circumstances known or available to such person, that such transfer required a license or authorization by or pursuant to this part and was not so licensed or authorized, or if a license or authorization did purport to cover the transfer, that such license or authorization had been obtained by misrepresentation of a third party or the withholding of material facts or was otherwise fraudulently obtained; and (3) Promptly upon discovery that: (i) Such transfer was in violation of the provisions of this part or any regulation, ruling, instruction, license, or other direction or authorization hereunder, or (ii) Such transfer was not licensed or authorized by the Director of the Office of Foreign Assets Control, or (iii) If a license did purport to cover the transfer, such license had been obtained by misrepresentation of a third party or the withholding of material facts or was otherwise fraudulently obtained; the person with whom such property was held or maintained filed with the Office of Foreign Assets Control a report setting forth in full the circumstances relating to such transfer. The filing of a report in accordance with the provisions of this paragraph shall not be deemed evidence that the terms of paragraphs (d) (1) and (2) of this section have been satisfied. (e) Unless licensed or authorized pursuant to this part, any attachment, judgment, decree, lien, execution, garnishment, or other judicial process is null and void with respect to any property in which, on or since the effective date, there existed an interest of the Government of Iraq. 575.203 Holding of certain types of blocked property in interest-bearing accounts. (a) Any person, including a U.S. financial institution, currently holding property subject to 575.201 which, as of the effective date or the date of receipt if subsequent to the effective date, is not being held in an interest-bearing account, or otherwise invested in a manner authorized by the Office of Foreign Assets Control, must transfer such property to, or hold such property or cause such property to be held in, an interest-bearing account or interest-bearing status in a U.S. financial institution as of the effective date or the date of receipt if subsequent to the effective date of this section, unless otherwise authorized or directed by the Office of Foreign Assets Control. This requirement shall apply to currency, bank deposits, accounts, and any other financial assets, and any proceeds resulting from the sale of tangible or intangible property. If interest is credited to an account separate from that in which the interest-bearing asset is held, the name of the account party on both accounts must be the same and must clearly indicate the blocked Government of Iraq entity having an interest in the accounts. (b) For purposes of this section, the term ``interest-bearing account'' means a blocked account in a U.S. financial institution earning interest at rates that are commercially reasonable for the amount of funds in the account. Except as otherwise authorized, the funds may not be invested or held in instruments the maturity of which exceeds 90 days. (c) This section does not apply to blocked tangible property, such as chattels, nor does it create an affirmative obligation on the part of the holder of such blocked tangible property to sell or liquidate the property and put the proceeds in a blocked account. However, the Office of Foreign Assets Control may issue licenses permitting or directing sales of tangible property in appropriate cases. 575.204 Prohibited importation of goods or services from Iraq. Except as otherwise authorized, no goods or services of Iraqi origin may be imported into the United States, nor may any U.S. person engage in any activity that promotes or is intended to promote such importation. 575.205 Prohibited exportation and reexportation of goods, technology, or services to Iraq. Except as otherwise authorized, no goods, technology (including technical data or other information), or services may be exported from the United States, or, if subject to U.S. jurisdiction, exported or reexported from a third country to Iraq, to any entity owned or controlled by the Government of Iraq, or to any entity operated from Iraq, except donated foodstuffs in humanitarian circumstances, and donated supplies intended strictly for medical purposes, the exportation of which has been specifically licensed pursuant to 575.507, 575.517 or 575.518. 575.206 Prohibited dealing in property. Except as otherwise authorized, no U.S. person may deal in property of Iraqi origin exported from Iraq after August 6, 1990, property intended for exportation to Iraq, or property intended for exportation from Iraq to any other country, nor may any U.S. person engage in any activity that promotes or is intended to promote such dealing. 575.207 Prohibited transactions relating to travel to Iraq or to activities within Iraq. Except as otherwise authorized, no U.S. person may engage in any transaction relating to travel by any U.S. citizen or permanent resident alien to Iraq, or to activities by any U.S. citizen or permanent resident alien within Iraq, after the effective date, other than transactions: (a) Necessary to effect the departure of a U.S. citizen or permanent resident alien from Kuwait or Iraq; (b) Relating to travel and activities for the conduct of the official business of the United States Government or the United Nations; or (c) Relating to journalistic activity by persons regularly employed in such capacity by a newsgathering organization. This section prohibits the unauthorized payment by a U.S. person of his or her own travel or living expenses to or within Iraq. 575.208 Prohibited transportation-related transactions involving Iraq. Except as otherwise authorized, the following are prohibited: (a) Any transaction by a U.S. person relating to transportation to or from Iraq; (b) The provision of transportation to or from the United States by any Iraqi person or any vessel or aircraft of Iraqi registration; or (c) The sale in the United States by any person holding authority under the Federal Aviation Act of any transportation by air which includes any stop in Iraq. (d) Example. Unless licensed or exempted, no U.S. person may insure, or provide ticketing, ground, port, refueling, bunkering, clearance, or freight forwarding services, with respect to any sea, ground, or air transportation the destination of which is Iraq, or which is intended to make a stop in Iraq. 575.209 Prohibited performance of contracts. Except as otherwise authorized, no U.S. person may perform any contract, including a financing contract, in support of an industrial, commercial, public utility, or governmental project in Iraq. 575.210 Prohibited transfer of funds to the Government of Iraq or any person in Iraq. Except as otherwise authorized, no U.S. person may commit or transfer, directly or indirectly, funds or other financial or economic resources to the Government of Iraq or any person in Iraq. 575.211 Evasions; attempts; conspiracies. Any transaction for the purpose of, or which has the effect of, evading or avoiding, or which facilitates the evasion or avoidance of, any of the prohibitions set forth in this subpart, is hereby prohibited. Any attempt to violate the prohibitions set forth in this part is hereby prohibited. Any conspiracy formed for the purpose of engaging in a transaction prohibited by this part is hereby prohibited. 575.212 Effective dates. The effective dates of the prohibitions and directives contained in this subpart B are as follow: (a) With respect to 575.201, 575.202, 575.204, 575.205, 575.207, 575.208, 575.209, and 575.211, 5 a.m., Eastern Daylight Time (``e.d.t.''), August 2, 1990; (b) With respect to 575.206, and 575.210, 8:55 p.m. e.d.t., August 9, 1990; and (c) With respect to 575.203, January 18, 1991. Subpart C -- General Definitions 575.301 Blocked account; blocked property. The terms blocked account and blocked property shall mean any account or property in which the Government of Iraq has an interest, and with respect to which payments, transfers, exportations, withdrawals, or other dealings may not be made or effected except pursuant to an authorization or license from OFAC authorizing such action. 575.302 Effective date. The term effective date refers to the effective date of the applicable prohibition, as identified in 575.212. 575.303 Entity. The term entity includes a corporation, partnership, association, or other organization. 575.304 Entity of the Government of Iraq; Iraqi Government entity. The term entity of the Government of Iraq or Iraqi Government entity includes: (a) Any corporation, partnership, association, or other entity in which the Government of Iraq owns a majority or controlling interest, any entity managed or funded by that government, or any entity which is otherwise controlled by that government; (b) Any agency or instrumentality of the Government of Iraq, including the Central Bank of Iraq. 575.305 General license. The term general license means any license or authorization the terms of which are set forth in this part. 575.306 Government of Iraq. The term Government of Iraq includes: (a) The state and the Government of Iraq, as well as any political subdivision, agency, or instrumentality thereof, including the Central Bank of Iraq; (b) Any partnership, association, corporation, or other organization substantially owned or controlled by the foregoing; (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 on behalf of any of the foregoing; and (d) Any other person or organization determined by the Director of the Office of Foreign Assets Control to be included within this section. Note to 575.306: Please refer to the appendices at the end of this chapter for listings of persons determined to fall within this definition that have been designated pursuant to this part. [56 FR 2113, Jan. 18, 1991, as amended at 61 FR 32938, June 26, 1996] 575.307 Government of Kuwait. The term Government of Kuwait includes: (a) The State and Government of Kuwait and any entity purporting to be the Government of Kuwait, as well as any political subdivision, agency, or instrumentality thereof, including the Central Bank of Kuwait; (b) Any partnership, association, corporation, or other organization substantially owned or controlled by the foregoing; (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 on behalf of any of the foregoing; (d) Any other person or organization determined by the Director or the Office of Foreign Assets Control to be included within this section. 575.308 Interest. Except as otherwise provided in this part, the term interest when used with respect to property (e.g., ``an interest in property'') means an interest of any nature whatsoever, direct or indirect. 575.309 Iraq; Iraqi. The term Iraq means the country of Iraq and any territory under the jurisdiction or authority thereof, legal or illegal. The term Iraqi means pertaining to Iraq as defined in this section. 575.310 Kuwait; Kuwaiti. The term Kuwait means the country of Kuwait and any territory under the jurisdiction or authority thereof. The term Kuwaiti means pertaining to Kuwait as defined in this section. 575.311 Iraqi origin. The term goods or services of Iraqi origin includes: (a) Goods produced, manufactured, grown, or processed within Iraq; (b) Goods which have entered into Iraqi commerce; (c) Services performed in Iraq or by a Iraqi national who is acting as an agent, employee, or contractor of the Government of Iraq, or of a business entity located in Iraq. Services of Iraqi origin are not imported into the United States when such services are provided in the United States by an Iraqi national employed in the United States. 575.312 Iraqi person. The term Iraqi person means an Iraqi citizen, any person organized under the laws of Iraq, or any person owned or controlled, directly or indirectly, by a Iraqi national or the Government of Iraq. 575.313 License. Except as otherwise specified, the term license means any license or authorization contained in or issued pursuant to this part. 575.314 Person. The term person means an individual, partnership, association, corporation, or other organization. 575.315 Property; property interest. The terms property and property interest include, but are not limited to, money, checks, drafts, bullion, bank deposits, savings accounts, debts, indebtedness, obligations, notes, debentures, stocks, bonds, coupons, any other financial instruments, bankers acceptances, mortgages, pledges, liens or other rights in the nature of security, warehouse receipts, bills of lading, trust receipts, bills of sale, any other evidences of title, ownership or indebtedness, letters of credit and any documents relating to any rights or obligations thereunder, powers of attorney, goods, wares, merchandise, chattels, stocks on hand, ships, goods on ships, real estate mortgages, deeds of trust, vendors sales agreements, land contracts, leaseholds, ground rents, real estate and any other interest therein, options, negotiable instruments, trade acceptances, royalties, book accounts, accounts payable, judgments, patents, trademarks or copyrights, insurance policies, safe deposit boxes and their contents, annuities, pooling agreements, services of any nature whatsoever, contracts of any nature whatsoever, and any other property, real, personal, or mixed, tangible or intangible, or interest or interests therein, present, future or contingent. 575.316 Special license. The term specific license means any license or authorization not set forth in this part but issued pursuant to this part in response to an application. 575.317 Transfer. The term transfer means 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, convey, transfer, or alter, directly or indirectly, any right, remedy, power, privilege, or interest with respect to any property and, without limitation upon the foregoing, shall include the making, execution, or delivery of any assignment, power, conveyance, check, declaration, deed, deed of trust, power of attorney, power of appointment, bill of sale, mortgage, receipt, agreement, contract, certificate, gift, sale, affidavit, or statement; the appointment of any agent, trustee, or fiduciary; the creation or transfer of any lien; the issuance, docketing, filing, or the levy of or under any judgment, decree, attachment, injunction, execution, or other judicial or administrative process or order, or the service of any garnishment; the acquisition of any interest of any nature whatsoever by reason of a judgment or decrease of any foreign country; the fulfillment of any condition; the exercise of any power of appointment, power of attorney, or other power; or the acquisition, disposition, transportation, importation, exportation, or withdrawal of any security. 575.318 UNSC Resolution 661. The term UNSC Resolution 661 means United Nations Security Council Resolution No. 661, adopted August 6, 1990, prohibiting certain transactions with respect to Iraq and Kuwait. 575.319 United States. The term United States means the United States, its territories and possessions, and all areas under the jurisdiction or authority thereof. 575.320 U.S. financial institution. The term U.S. financial institution means any U.S. person (including foreign branches) that is engaged in the business of accepting deposits, making, granting, transferring, holding, or brokering loans or credits, or purchasing or selling foreign exchange, securities, commodity futures or options, or procuring purchasers and sellers thereof, as principal or agent; including, but not limited to, depository institutions, banks, savings banks, trust companies, securities brokers and dealers, commodity futures and options brokers and dealers, forward contract and foreign exchange merchants, securities and commodities exchanges, clearing corporations, investment companies, employee benefit plans, and U.S. holding companies, U.S. affiliates, or U.S. subsidiaries of any of the foregoing. This term includes those branches, offices and agencies of foreign financial institutions which are located in the United States, but not such institutions' foreign branches, offices, or agencies. 575.321 United States person; U.S. person. The term United States person or U.S. person means any United States citizen; permanent resident alien; juridical person organized under the laws of the United States or any jurisdiction within the United States, including foreign branches; or any person in the United States. 575.322 United States national; U.S. national. The term United States national or U.S. national means any United States citizen; any person who, though not a citizen of the United States, owes permanent allegiance to the United States; and any juridical person organized under the laws of the United States or any jurisdiction within the United States. This term does not include U.S. branches of persons organized under foreign law, or aliens, regardless of whether they have permanent resident status in the United States. [56 FR 5636, Feb. 11, 1991] Subpart D -- Interpretations 575.401 Reference to amended sections. Except as otherwise specified, reference to any section of this part or to any regulation, ruling, order, instruction, direction, or license issued pursuant to this part shall be deemed to refer to the same as currently amended. 575.402 Effect of amendment. Any amendment, modification, or revocation of any section of this part or of any order, regulation, ruling, instruction, or license issued by or under the direction of the Director of the Office of Foreign Assets Control shall not, unless otherwise specifically provided, be deemed to affect any act done or omitted to be done, or any civil or criminal suit or proceeding commenced or pending prior to such amendment, modification, or revocation. All penalties, forfeitures, and liabilities under any such order, regulation, ruling, instruction, or license shall continue and may be enforced as if such amendment, modification, or revocation had not been made. 575.403 Termination and acquisition of an interest of the Government of Iraq. (a) Whenever a transaction licensed or authorized by or pursuant to this part results in the transfer of property (including any property interest) from the Government of Iraq, such property shall no longer be deemed to be property in which the Government of Iraq has or has had an interest unless there exists in the property another such interest, the transfer of which has not been effected pursuant to license or other authorization. (b) Unless otherwise specifically provided in a license or authorization issued pursuant to this part, if property (including any property interest) is transferred or attempted to be transferred to the Government of Iraq, such property shall be deemed to be property in which there exists an interest of the Government of Iraq. 575.404 Payments from blocked accounts to U.S. exporters and for other obligations prohibited. No debits may be made to a blocked account to pay obligations to U.S. persons or other persons, including payment for goods, technology or services exported prior to the effective date, except as authorized pursuant to this part. 575.405 Acquisition of instruments including bankers acceptances. No U.S. person may acquire or deal in any obligation, including bankers acceptances, where the documents evidencing the obligation indicate, or the U.S. person has actual knowledge, that the underlying transaction is in violation of 575.201, 575.204, or 575.205. This interpretation does not apply to obligations arising from an underlying transaction licensed or otherwise authorized pursuant to this part. 575.406 Extensions of credits or loans to Iraq. (a) The prohibition in 575.210 applies to the unlicensed renewal of credits or loans in existence on the effective date, whether by affirmative action or operation of law. (b) The prohibition in 575.210 applies to credits to loans extended in any currency. 575.407 Payments in connection with certain authorized transactions. Payments are authorized in connection with transactions authorized in or pursuant to subpart E. 575.408 Offshore transactions. (a) The prohibitions contained in 575.201 and 575.206 apply to transactions by U.S. persons in locations outside the United States with respect to property in which the U.S. person knows, or has reason to know, that the Government of Iraq has or has had an interest since the effective date. (b) Prohibited transactions include, but are not limited to, importation into locations outside the United States of, or dealings within such locations in, goods or services of Iraqi origin. (c) Examples. (1) A U.S. person may not, within the United States or abroad, purchase, sell, finance, insure, transport, act as a broker for the sale or transport of, or otherwise deal in, Iraqi crude oil or petroleum products refined in Iraq. (2) A U.S. person may not, within the United States or abroad, conduct transactions of any nature whatsoever with an entity that the U.S. person knows or has reason to know is an Iraqi Government entity unless the entity is licensed by the Office of Foreign Assets Control to conduct such transactions with U.S. persons. 575.409 Transshipments through the United States prohibited. (a) The prohibitions in 575.205 apply to the importation into the United States, for transshipment or transit, of goods which are intended or destined for Iraq, or an entity operated from Iraq. (b) The prohibitions in 575.204 apply to the importation into the United States, for transshipment or transit, of goods of Iraqi origin which are intended or destined for third countries. (c) Goods in which the Government of Iraq has an interest which are imported into or transshipped through the United States are blocked pursuant to 575.201. 575.410 Imports of Iraqi goods from third countries; transshipments. Importation into the United States from third countries of goods, including refined petroleum products, containing raw materials or components of Iraqi origin is prohibited. In light of the universal prohibition in UNSC Resolution 661 on the importation of goods exported from Iraq or Kuwait after August 6, 1990, substantial transformation of Iraqi-origin goods in a third country does not exempt the third-country products from the prohibitions contained in this part. 575.411 Exports to third countries; transshipments. Exportation of goods or technology (including technical data and other information) from the United States to third countries is prohibited if the exporter knows, or has reason to know, that the goods or technology are intended for transshipment to Iraq (including passage through, or storage in, intermediate destinations). The exportation of goods and technology intended specifically for incorporation or substantial transformation into a third-country product is also prohibited if the particular product is to be used in Iraq, is being specifically manufactured to fill a Iraqi order, or if the manufacturer's sales of the particular product are predominantly to Iraq. 575.412 Release of Iraqi goods from bonded warehouse or foreign trade zone. Section 575.204 does not prohibit the release from a bonded warehouse or a foreign trade zone of goods of Iraqi origin imported into a bonded warehouse or a foreign trade zone either prior to the effective date or in a transaction authorized pursuant to this part after the effective date. Note: Pursuant to 575.201, property in which the Government of Iraq has an interest may not be released unless authorized or licensed by the Office of Foreign Assets Control. 575.413 Goods intended for export to Iraq. The prohibitions contained in 575.201 do not apply to goods manufactured, consigned, or destined for export to Iraq and not subject to 575.517, if the Government of Iraq has never held or received title to such goods on or after the effective date, and if any payment received from the Government of Iraq with respect to such goods is placed in a blocked account in a U.S. financial institution pursuant to 575.503. The prohibitions of 575.205 apply to goods subject to this section. 575.414 Imports of Iraqi goods and purchases of goods from Iraq. The prohibitions contained in 575.201 shall not apply to the importation of Iraqi-origin goods and services described in 575.204 if the importation of such goods is permitted by an authorization or license issued pursuant to this part. However, any payments in connection with such importation are subject to the prohibitions contained in 575.201 and 575.210. 575.415 Setoffs prohibited. A setoff against a blocked account, whether by a U.S. bank or other U.S. person, is a prohibited transfer under 575.201 if effected after the effective date. 575.416 Travel transactions for journalistic activity in Iraq. (a) Section 575.207 does not prohibit travel transactions in Iraq by persons regularly employed in journalistic activity by recognized newsgathering organizations. (b) For purposes of this part: (1) A person is considered regularly employed as a journalist if he or she is employed in a constant or regular manner by a recognized newsgathering organization. Free-lance journalists should have an assignment from a recognized newsgathering organization requiring travel to Iraq, or be able to demonstrate that publication by a recognized newsgathering organization of a work requiring such travel is likely. The latter may be demonstrated by providing a resume listing previously-published free-lance works or copies of previously-published works. (2) ``Recognized newsgathering organizations'' include those entities regularly and principally engaged in collecting news for publication in the public press, transmission by wire services, or broadcast by radio or television. (c) Authorized travel transactions are limited to those incident to travel for the purpose of collecting and disseminating information for a recognized newsgathering organization, and do not include travel transactions related to any other activity in Iraq. 575.417 [Reserved] 575.418 Transactions incidental to a licensed transaction. (a) Any transaction ordinarily incident to a licensed transaction and necessary to give effect thereto is also authorized, except a transaction by an unlicensed, blocked person or involving an unlicensed debit to a blocked account. (b) Example. A license authorizing the Government of Iraq to complete a securities sale also authorizes all activities by other parties required to complete the sale, including transactions by the buyer, brokers, transfer agents, banks, etc. Subpart E -- Licenses, Authorizations, and Statements of Licensing Policy 575.501 Effect of license or authorization. (a) No license or other authorization contained in this part, or otherwise issued by or under the direction of the Director of the Office of Foreign Assets Control, shall be deemed to authorize or validate any transaction effected prior to the issuance of the license, unless specifically provided in such license or authorization. (b) No regulation, ruling, instruction, or license authorizes any transaction prohibited under this part unless the regulation, ruling, instruction, or license is issued by the Office of Foreign Assets Control and specifically refers to this part. No regulation, ruling, instruction, or license referring to this part shall be deemed to authorize any transaction prohibited by any provision of this chapter unless the regulation, ruling, instruction or license specifically refers to such provision. (c) Any regulation, ruling, instruction, or license authorizing any transaction otherwise prohibited under this part has the effect of removing a prohibition or prohibitions contained in Subpart B from the transaction, but only to the extent specifically stated by its terms. Unless the regulation, ruling, instruction, or license otherwise specifies, such an authorization does not create any right, duty, obligation, claim, or interest in, or with respect to, any property which would not otherwise exist under ordinary principles of law. 575.502 Exclusion from licenses and authorizations. The Director of the Office of Foreign Assets Control reserves the right to exclude any person, property, or transaction from the operation of any license, or from the privileges therein conferred, or to restrict the applicability thereof with respect to particular persons, property, transactions, or classes thereof. Such action shall be binding upon all persons receiving actual or constructive notice of such exclusion or restriction. 575.503 Payments and transfers to blocked accounts in U.S. financial institutions. (a) Any payment of funds or transfer of credit or other assets, including any payment or transfer by any U.S. person outside the United States, to a blocked account in a U.S. financial institution located in the United States in the name of the Government of Iraq is hereby authorized, including incidental foreign exchange transactions, provided that such payment or transfer shall not be made from any blocked account if such payment or transfer represents, directly or indirectly, a transfer of any interest of the Government of Iraq to any other country or person. (b) This section authorizes transfer of the funds of a blocked demand deposit account to a blocked interest-bearing account under the same name or designation as was the demand deposit account, as required pursuant to 575.203 or at the instruction of the depositor, at any time. If such transfer is to a blocked account in a different U.S. financial institution such transfer must be made to a blocked account in a U.S. financial institution located in the United States, and the transferee financial institution must furnish within 10 business days of the date of transfer, the notification described in paragraph (h) of this section to the Office of Foreign Assets Control, Blocked Assets Section. (c) This section does not authorize any transfer from a blocked account within the United States to an account held outside the United States. (d) This section does not authorize any payment or transfer to any blocked account held in a name other than that of the Government of Iraq where such government is the ultimate beneficiary of such payment or transfer. (e) 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. (f) This section does not authorize the crediting of the proceeds of the sale of securities or other assets, held in a blocked account or a sub-account thereof, or the income derived from such securities or assets, 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 or assets were or are held. (g) This section does not authorize any payment or transfer from a blocked account in a U.S. financial institution to a blocked account held under any name or designation which differs from the name or designation of the specified blocked account or sub-account from which the payment or transfer is made. (h) 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 Programs 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 individual or entity of the Government of Iraq 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 575.606, responsible for the administration of blocked assets at the transferee financial institution from whom records on blocked assets may be obtained. [56 FR 2113, Jan. 18, 1991, as amended at 56 FR 5636, Feb. 11, 1991; 58 FR 47646, Sept. 10, 1993] 575.504 [Reserved] 575.505 Completion of certain transactions related to bankers acceptances authorized. (a) Persons other than the Government of Iraq are authorized to buy, sell, and satisfy obligations with respect to bankers acceptances, and to pay under deferred payment undertakings, involving an interest of the Government of Iraq as long as the bankers acceptances were created or the deferred payment undertakings were incurred prior to the effective date. (b) Persons other than the Government of Iraq are authorized to buy, sell, and satisfy obligations with respect to bankers acceptances, and to pay under deferred payment undertakings, involving the importation or exportation of goods to or from Iraq that do not involve an interest of the Government of Iraq as long as the bankers acceptances or the deferred payment undertakings were accepted prior to the effective date. (c) Nothing in this section shall authorize or permit a debit to a blocked account. Specific licenses for the debiting of a blocked account may be issued on a case-by-case basis. 575.506 Payment by the Government of Iraq of obligations to persons within the United States authorized. (a) The transfer of funds after the effective date by, through, or to any U.S. financial institution or other U.S. person solely for the purpose of payment of obligations of the Government of Iraq to persons or accounts within the United States is authorized, provided that the obligation arose prior to the effective date, and the payment requires no debit to a blocked account. Property is not blocked by virtue of being transferred or received pursuant to this section. (b) A person receiving payment under this section may distribute all or part of that payment to any person, provided that any such payment to the Government of Iraq must be to a blocked account in a U.S. financial institution. (c) The authorization in this section is subject to the condition that written notification from the U.S. financial institution or U.S. person transferring or receiving funds is furnished to the Office of Foreign Assets Control, Blocked Assets Section, within 10 business days from the date of transfer or receipt. The notification shall provide the account number, name and address of the transferor and/or transferee U.S. financial institution or person, and the account number, name and address of the person into whose account payment is made. 575.507 Certain exports to Iraq authorized. (a) All transactions ordinarily incident to the exportation of any item, commodity, or product from the United States to or destined for Iraq are authorized if: (1) such exports would ordinarily be authorized under one of the following regulations administered by the Department of Commerce: 15 CFR 771.6 -- General license BAGGAGE (accompanied and unaccompanied baggage); 15 CFR 771.13 -- General license GUS (shipments to personnel and agencies of the U.S. Government); or, (2) such exports are for the official use of the United Nations, its personnel and agencies (excluding its relief or developmental agencies). (b) All transactions related to exportation or reexportation not otherwise authorized in this part, are prohibited unless licensed pursuant to the procedures described in 575.801 by the Office of Foreign Assets Control. [56 FR 2113, Jan. 18, 1991, as amended at 56 FR 5636, Feb. 11, 1991] 575.508 Import of household and personal effects from Iraq authorized. The importation of household and personal effects of Iraqi origin, including baggage and articles for family use, of persons arriving in the United States directly or indirectly from Iraq is authorized. Articles included in such effects may be imported without limitation provided they were actually used by such persons or their family members abroad, are not intended for any other person or for sale, and are not otherwise prohibited from importation. 575.509 Payments and transfers authorized for shipments of oil under contract and en route to the United States prior to the effective date. (a) Oil of Iraqi origin or oil in which the Government of Iraq has an interest may be imported into the United States only if: (1) Prior to the effective date, the oil was loaded for ultimate delivery to the United States on board a vessel in Iraq, Kuwait, or a third country; (2) The oil was imported into the United States before 11:59 p.m. Eastern Daylight Time, October 1, 1990; and (3) The bill of lading accompanying the oil was issued prior to the effective date. (b) Any payment owed or balance not paid to or for the benefit of the Government of Iraq prior to the effective date for oil imported pursuant to paragraph (a) must be paid into a blocked account in a U.S. financial institution. (c) Transactions conducted pursuant to this section must be reported in writing to the Office of Foreign Assets Control, Blocked Assets Section, no later than 10 days after the date of importation. Note: Transactions authorized by this provision have been completed prior to January 18, 1991. The text of this license is included for the convenience of the user. 575.510 Payments and transfers authorized for goods and services exported to Iraq prior to the effective date. (a) Specific licenses may be issued on a case-by-case basis to permit payment involving an irrevocable letter of credit issued or confirmed by a U.S. bank, or a letter of credit reimbursement confirmed by a U.S. bank, from a blocked account or otherwise, of amounts owed to or for the benefit of a person with respect to goods or services exported prior to the effective date directly or indirectly to Iraq or Kuwait, or to third countries for an entity operated from Iraq or Kuwait, or for the benefit of the Government of Iraq, where the license application presents evidence satisfactory to the Office of Foreign Assets Control that: (1) The exportation occurred prior to the effective date (such evidence may include, e.g., the bill of lading, the air waybill, the purchaser's written confirmation of completed services, customs documents, and insurance documents); and (2) If delivery or performance occurred after the effective date, due diligence was exercised to divert delivery of the goods from Iraq and to effect final delivery of the goods to a non-prohibited destination, or to prevent performance of the services. (b) Specific license applications must also contain the following information: (1) The name and address of any Iraqi broker, purchasing agent, or other participant in the sale of goods or services exported to Iraq; and an explanation of the facts and circumstances surrounding the entry into and execution of the transaction; and (2) a notarized statement by the applicant certifying that no ownership interest greater than five (5) percent is held by the Government of Iraq or an Iraqi person in the beneficiary of the letters of credit, or if such interest exists, the name, address and ownership interest of the Government of Iraq entity or Iraqi person holding such interest. (c) This section does not authorize exportation or the performance of services after the effective date pursuant to a contract entered into or partially performed prior to the effective date. (d) Transactions conducted under specific licenses granted pursuant to this section must be reported in writing to the Office of Foreign Assets Control, Blocked Assets Section, no later than 10 days after the date of payment. (e) Separate criteria may be applied to the issuance of licenses authorizing payment from an account of or held by a blocked U.S. bank owned or controlled by the Government of Iraq. 575.511 Extensions or renewals authorized. (a) The extension or renewal, at the request of the account party, of a letter of credit or a standby letter of credit issued or confirmed by a U.S. financial institution is authorized. (b) Transactions conducted pursuant to this section must be reported to the Office of Foreign Assets Control, Blocked Assets Section, within 10 days after completion of the transaction. 575.512 [Reserved] 575.513 Transactions related to telecommunications authorized. All transactions of U.S. common carriers with respect to the receipt and transmission of telecommunications involving Iraq are authorized, provided that any payment owed to the Government of Iraq or persons in Iraq is paid into a blocked account in a U.S. financial institution. 575.514 Transactions related to mail authorized. All transactions by U.S. persons, including payment and transfers to common carriers, incident to the receipt or transmission of mail between the United States and Iraq are authorized, provided that mail is limited to personal communications not involving a transfer of anything of value and not exceeding 12 ounces. 575.515 -- 575.516 [Reserved] 575.517 Procedures established for export transactions initiated prior to effective date. Goods awaiting exportation to Iraq on the effective date and seized or detained by the U.S. Customs Service on the effective date or thereafter may be released to the exporter, provided the following documents are filed with Customs officials at the port where such goods are located: (a) A copy of the contract governing the exportation (sale or other transfer) of the goods to Iraq or, if no contract exists, a written explanation of the circumstances of exportation, including in either case a description of the manner and terms of payment received or to be received by the exporter (or other person) for, or by reason of, the exportation of the goods; (b) An invoice, bill of lading, or other documentation fully describing the goods; and (c) A statement by the exporter substantially in the following form: Any amount received from or on behalf of the Government of Iraq by reason of the attempted exportation of the goods released to [name of exporter] by the U.S. Customs Service on [date], and fully described in the attached documents, has been or will be placed into a blocked account in a U.S. bank and the Office of Foreign Assets Control, Blocked Assets Section, will be immediately notified. [Name of exporter] agrees to fully indemnify the U.S. Government for any amount ultimately determined by a court of competent jurisdiction to be due or payable to or for the benefit of any person by reason of the failure of [name of exporter] to properly pay into a blocked account any amount received for the goods from or on behalf of the Government of Iraq. [Name of exporter] also agrees to waive all claims (1) against any payments received and placed into a blocked account, except as may be later authorized by law, regulations, or license, and (2) against the U.S. Government with regard to the disposition of the amounts placed into a blocked account. The statement should be dated and signed by the exporter or by a person authorized to sign on the exporter's behalf. The Customs Service may release the goods to the exporter upon receipt of the documentation and statement described above, provided it is satisfied that all customs laws and regulations have been complied with, including the execution of such hold harmless assurances as it shall determine to be appropriate. The documentation and statement received by Customs will be forwarded to the Office of Foreign Assets Control for review and appropriate action. 575.518 Certain standby letters of credit and performance bonds. (a) Notwithstanding any other provision of law, payment into a blocked account in a U.S. financial institution by an issuing or confirming bank under a standby letter of credit in favor of a beneficiary that is the Government of Iraq or a person in Iraq is prohibited by 575.201 and not authorized, notwithstanding the provisions of 575.503, if: (1) The account party is a U.S. person; and (2)(i) A specific license has been issued pursuant to the provisions of paragraph (b) of this section, or (ii) 10 business days have not expired after notice to the account party pursuant to paragraph (b) of this section. (b) Whenever an issuing or confirming bank shall receive such demand for payment under such a standby letter of credit, it shall promptly notify the account party. The account party may then apply within five business days for a specific license authorizing the account party to establish a blocked account on its books in the name of the Iraqi beneficiary in the amount payable under the credit, in lieu of payment by the issuing or confirming bank into a blocked account and reimbursement therefor by the account party. Nothing in this section relieves any such bank or such account party from giving any notice of defense against payment or reimbursement that is required by applicable law. (c) Where there is outstanding a demand for payment under a standby letter of credit, and the issuing or confirming bank has been enjoined from making payment, upon removal of the injunction, the account party may apply for a specific license for the same purpose and in the same manner as that set forth in paragraph (b) of this section. The issuing or confirming bank shall not make payment under the standby letter of credit unless: (1) 10 business days have expired since the bank has received notice of the removal of the injunction, and (2) A specific license issued to the account party pursuant to the provisions of this paragraph has not been presented to the bank. (d) If necessary to assure the availability of the funds blocked, the Director of the Office of Foreign Assets Control may at any time require the payment of the amounts due under any letter of credit described in paragraph (a) of this section into a blocked account in a U.S. financial institution or the supplying of any form of security deemed necessary. (e) Nothing in this section precludes the account party on any standby letter of credit or any other person from at any time contesting the legality of the demand from an Iraqi beneficiary or from raising any other legal defense to payment under the standby letter of credit. (f) This section does not affect the obligation of the various parties to the instruments covered by this section if the instruments and payments thereunder are subsequently unblocked. (g) The section does not authorize any U.S. person to reimburse a non-U.S. bank for payment to a Iraqi beneficiary under a standby letter of credit, except by payments into a blocked account in accordance with 575.503 or paragraph (b) or (c) of this section. (h) A person receiving a specific license under paragraph (b) or (c) of this section shall certify to the Office of Foreign Assets Control within 5 business days after receipt of that license that it has established the blocked account on its books as provided in those paragraphs. However, in appropriate cases, this time period may be extended upon application to the Office of Foreign Assets Control when the account party has filed a petition with an appropriate court seeking a judicial order barring payment by the issuing or confirming bank. (i) For the purposes of this section: (1) The term ``standby letter of credit'' shall mean a letter of credit securing performance of, or repayment of, any advance payments or deposits under a contract, or any similar obligation in the nature of a performance bond; (2) The term ``account party'' shall mean the person for whose account the standby letter of credit is opened; and (3) The term ``Iraqi beneficiary'' shall mean a beneficiary that is (i) A person in Iraq, (ii) An entity operated from Iraq, or (iii) The Government of Iraq. 575.519 Certain imports for diplomatic or official personnel authorized. All transactions ordinarily incident to the importation of any goods or services into the United States destined for official or personal use by personnel employed by the diplomatic missions of the Government of Iraq to the United States and to international organizations located in the United States are authorized, not for resale, and unless the importation is otherwise prohibited by law. 575.520 Donations of food to relieve human suffering authorized. (a) Specific licenses may be issued on a case-by-case basis to permit exportation to Iraq of donated food intended to relieve human suffering. (b) In general, specific licenses will only be granted for donations of food to be provided through the United Nations in accordance with United Nations Security Council Resolutions 661 and 666 and in cooperation with the International Committee of the Red Cross or other appropriate humanitarian agencies for distribution by them or under their supervision, or in such other manner as may be approved under United Nations Security Council Resolution 666 and any other applicable Security Council resolutions, in order to ensure that such donations reach the intended beneficiaries. (c) Applications for specific licenses pursuant to paragraph (a) of this section shall be made in advance of the proposed exportation, and provide the following information: (1) The nature, quantity, value, and intended use of the donated food; and (2) The terms and conditions of distribution, including the intended method of compliance with such terms and conditions of distribution as may have been adopted by the United Nations Security Council or a duly authorized body subordinate thereto to govern the shipment of foodstuffs under applicable United Nations Security Council resolutions, including Resolutions 661 and 666. 575.521 Donations of medical supplies authorized. (a) Specific licenses may be issued on a case-by-case basis to permit exportation to Iraq of donated supplies intended strictly for medical purposes, in accordance with the provisions of United Nations Security Council Resolutions 661 and 666 and other applicable Security Council resolutions. (b) In general, specific licenses will only be granted for the exportation of medical supplies through the International Committee of the Red Cross or other appropriate humanitarian agencies for distribution by them or under their supervision, or in such other manner as may be approved under applicable Security Council resolutions, in order to ensure that such supplies reach the intended recipient. (c) Applications for specific licenses pursuant to paragraph (a) shall be made in advance of the proposed exportation, and provide the following information: (1) The nature, quantity, value, and intended use of the medical supplies; (2) The terms and conditions of distribution, including the intended method of compliance with such terms and conditions of distribution as may have been adopted by the United Nations Security Council or a duly authorized body subordinate thereto to govern the shipment of medical supplies under applicable Security Council resolutions. Subpart F -- Reports 575.601 Required records. Every person engaging in any transaction subject to the provisions of this part shall keep a full and accurate record of each such transaction in which that person engages, regardless of whether such transaction is effected pursuant to license or otherwise, and such record shall be available for examination for at least 2 years after the date of such transaction. 575.602 Reports to be furnished on demand. Every person is required to furnish under oath, in the form of reports or otherwise, from time to time and at any time as may be required, complete information relative to any transaction, regardless of whether such transaction is effected pursuant to license or otherwise, subject to the provisions of this part. Such reports may be required to include the production of any books of account, contracts, letters or other papers, connected with any such transaction or property, in the custody or control of the person required to make such reports. Reports with respect to transactions may be required either before or after such transactions are completed. The Director of Foreign Assets Control may, through any person or agency, conduct investigations, hold hearings, administer oaths, examine witnessess, receive evidence, take depositions, and require by subpoena the attendance and testimony of witnessess and the production of all books, papers, and documents relating to any matter under investigation, regardless of whether any report has been required or filed in connection therewith. 575.603 [Reserved] 575.604 Reports on Form TDF 90 - 22.40. (a) Requirement for report. Reports on Form TDF 90 - 22.40 are hereby required to be filed on or before March 1, 1991, in the manner prescribed herein and in the instructions to Form TDF 90 - 22.40, with respect to all property held by any United States person, in which the Government of Iraq has or has had any interest at any time since 5 a.m. E.D.T., August 2, 1990. Reports must contain complete answers to every question included in Form TDF 90 - 22.40. (b) Who must report. Reports on Form TDF 90 - 22.40 must be filed by each of the following: (1) Any U.S. person, or his successor, who has had in his custody, possession or control, directly or indirectly, in trust or otherwise, property in which there was any direct or indirect interest of the Government of Iraq at any time since 5 a.m. e.d.t., August 2, 1990; (2) Any business or non-business entity in the United States in which the Government of Iraq holds or has held any financial interest since 5 a.m. e.d.t., August 2, 1990. (c) How to file Form TDF 90 - 22.40. Reports on Form TDF 90 - 22.40 shall be prepared in triplicate. On or before March 1, 1991, two copies shall be sent in a set to Unit 604, Office of Foreign Assets Control, Department of the Treasury, Washington, DC 20220. The third copy must be retained with the reporter's records. (d) Certification. Every report on Form TDF 90 - 22.40 shall contain the certification required in Part C of the Form. Failure to complete the certification shall render the report ineffective, and the submission of such a report shall not constitute compliance with this section. (e) Confidentiality of reports. Reports on Form TDF 90 - 22.40 are regarded as privileged and confidential. [56 FR 5637, Feb. 11, 1991] 575.605 Reports on Form TDF 90 - 22.41. (a) Requirement for reports. Reports on Form TDF 90 - 22.41 are hereby required to be filed on or before March 1, 1991, in the manner prescribed herein and in the instructions to Form TDF 90 - 22.41, with respect to all claims held by U.S. nationals as of 5 p.m., e.s.t., January 16, 1991, against the Government of Iraq or an Iraqi government entity. Reports must contain complete answers to every question included in Form 90 - 22.41. (b) Who must report. Reports on Form TDF 90 - 22.41 must be filed by every U.S. national who had a claim outstanding at 5 p.m., e.s.t., January 16, 1991, against the Government of Iraq or an Iraqi government entity. No report is to be submitted by a U.S. branch of a foreign firm not owned or controlled by a U.S. national. (c) How to file Form TDF 90 - 22.41. Reports on Form TDF 90 - 22.41 shall be prepared in triplicate. On or before March 1, 1991, two copies shall be sent in a set to Unit 605, Office of Foreign Assets Control, Department of the Treasury, Washington, DC 20220. The third copy must be retained with the reporter's records. (d) Certification. Every report on Form TDF 90 - 22.41 shall contain the certification required on Part C of the Form. Failure to complete the certification shall render the report ineffective, and the submission of such a report shall not constitute compliance with this section. (e) Confidentiality of reports. Reports on Form TDF 90 - 22.41 are regarded as privileged and confidential. (f) Examples of claims. Claims may relate to losses due to expropriation, nationalization, or other measures affecting property rights; losses for breach of contract or debt defaults; compensation for injuries to persons or loss of life; and any other losses or injuries suffered in Iraq, Kuwait or elsewhere, attributable to the Government of Iraq or an Iraqi government entity, whether or not arising from actions relating to Iraq's invasion of Kuwait. Claims may also relate to losses suffered by a foreign partnership, joint venture, corporation or other entity in which U.S. nationals have a significant interest. [56 FR 5637, Feb. 11, 1991] 575.606 Registration of persons holding blocked property subject to 575.201. (a) Any individual holding property subject to 575.201 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 575.201. (b) Any person, other than an individual, holding property subject to 575.201, 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 575.503, 10 days after the date such property is received and becomes subject to 575.201. (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 47646, Sept. 10, 1993] Subpart G -- Penalties 575.701 Penalties. (a) Section 586E of the Iraq Sanctions Act of 1990, Public Law 101 - 513, 104 Stat. 2049, provides that, notwithstanding section 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705) and section 5(b) of the United Nations Participation Act of 1945 (22 U.S.C. 287c(b)) -- (1) A civil penalty of not to exceed $250,000 may be imposed on any person who, after the enactment of this Act, violates or evades or attempts to violate or evade Executive Order Number 12722, 12723, 12724, 12725, or any license, order, or regulation issued under any such Execution Order; (2) Whoever after the date of enactment of this Act willfully violates or evades or attempts to violate or evade Executive Order Number 12722, 12723, 12724, or 12725 or any license, order, or regulation issued under any such Executive Order -- (i) shall, upon conviction, be fined not more than $1,000,000 if a person other than a natural person; or (ii) if a natural person, shall, upon conviction, be fined not more than $1,000,000, be imprisoned for not more than 12 years, or both. (3) Any officer, director, or agent of any corporation who knowingly participates in a violation, evasion, or attempt described in paragraph (a)(2) of this section may be punished by imposition of the fine, imprisonment (or both) specified in paragraph (a)(2)(ii) of this section. (b) Attention is directed to the United Nations Participation Act, 22 U.S.C. 287c(b), which provides that any person who willfully violates or evades or attempts to violate or evade any order, rule, or regulation issued by the President pursuant to the authority granted in that section shall, upon conviction, be fined not more than $10,000 or, if a natural person, be imprisoned for not more than ten years, or both; and the officer, director or agent of any corporation who knowingly participates in such violation or evasion shall be punished by a similar fine, imprisonment or both, and any property, funds, securities, papers, or other articles or documents, or any vessel, together with tackle, apparel, furniture, and equipment, or vehicle, or aircraft, concerned in such violation shall be forfeited to the United States. (c) 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 five years, or both. (d) Violations of this part may also be subject to relevant provisions of the Customs laws and other applicable laws. 575.702 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 International Emergency Economic Powers Act, and the Director determines that further proceedings are warranted, he shall issue to the person concerned a notice of his intent to impose a monetary penalty. The prepenalty notice shall be issued whether or not another agency has taken any action with respect to this matter. (b) Contents -- (1) Facts of violation. The prepenalty notice shall describe the violation, specify the laws and regulations allegedly violated, and state the amount of the proposed monetary penalty. (2) Right to make presentations. The prepenalty notice also shall inform the person of his right to make a written presentation within 30 days of mailing of the notice as to why a monetary penalty should not be imposed, or, if imposed, why it should be in a lesser amount than proposed. 575.703 Presentation responding to prepenalty notice. (a) Time within which to respond. The named person shall have 30 days from the date of mailing of the prepenalty notice to make a written presentation to the Director. (b) Form and contents of written presentation. The written presentation need not be in any particular form, but shall contain information sufficient to indicate that it is in response to the prepenalty notice. It should contain responses to the allegations in the prepenalty notice and set forth the reasons why the person believes the penalty should not be imposed or, if imposed, why it should be in a lesser amount than proposed. 575.704 Penalty notice. (a) No Violation. If, after considering and presentations made in response to the prepenalty notice and any relevant facts, 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 the determination and that no monetary penalty will be imposed. (b) Violation. If, after considering any presentations made in response to the prepenalty notice, the Director determines that there was a violation by the person named in the prepenalty notice, he promptly shall issue a written notice of the imposition of the monetary penalty to that person. 575.705 Referral to United States Department of Justice. In the event that the person named does not pay the penalty imposed pursuant to this subpart or make payment arrangements acceptable to the Director within 30 days of the mailing of the written notice of the imposition of the penalty, the matter shall be referred to the United States Department of Justice for appropriate action to recover the penalty in a civil suit in a Federal district court. Subpart H -- Procedures 575.801 Licensing. (a) General Licenses. General licenses have been issued authorizing under appropriate terms and conditions certain types of transactions which are subject to the prohibitions contained in subpart B of this part. All such licenses in effect on the date of publication are set forth in subpart E of this part. It is the policy of the Office of Foreign Assets Control not to grant applications for specific licenses authorizing transactions to which the provisions of an outstanding general license are applicable. Persons availing themselves of certain general licenses may be required to file reports and statements in accordance with the instructions specified in those licenses. Failure to file such reports or statements will nullify the authority of the general license. (b) Specific licenses -- (1) General course of procedure. Transactions subject to the prohibitions contained in subpart B of this part which are not authorized by general license may be effected only under specific licenses. (2) Applications for specific licenses. Applications for specific licenses to engage in any transactions prohibited by or pursuant to this part may be filed by letter with the Office of Foreign Assets Control. Any person having an interest in a transaction or proposed transaction may file an application for a license authorizing such transaction, but the applicant for a specific license is required to make full disclosure of all parties in interest to the transaction so that a decision on the application may be made with full knowledge of all relevant facts and so that the identity and location of the persons who know about the transaction may be easily ascertained in the event of inquiry. (3) Information to be supplied. The applicant must supply all information specified by relevant instructions and/or forms, and must fully disclose the names of all the parties who are concerned with or interested in the proposed transaction. If the application is filed 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 or discuss or argue the application may do so at any time before or after decision. Arrangements for oral presentation shall be made with the Office of Foreign Assets Control. (4) Effect of denial. The denial of a license does not preclude the reopening of an application or the filing of a further application. The applicant or any other party in interest may at any time request explanation of the reasons for a denial by correspondence or personal interview. (5) Reports under specific licenses. As a condition for the issuance of any license, the licensee may be required to file reports with respect to the transaction covered by the license, in such form and at such times and places as may be prescribed in the license or otherwise. (6) Issuance of license. Licenses will be issued by the Office of Foreign Assets Control acting on behalf of the Secretary of the Treasury or licenses may be issued by the Secretary of the Treasury acting directly or through any specifically designated person, agency, or instrumentality. (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., Annex, Washington, DC 20220. 575.802 Decisions. The Office of Foreign Assets Control will advise each applicant of the decision respecting filed applications. The decision of the Office of Foreign Assets Control acting on behalf of the Secretary of the Treasury with respect to an application shall constitute final agency action. 575.803 Amendment, modification, or revocation. The provisions of this part and any rulings, licenses, whether general or specific, authorizations, instructions, orders, or forms issued hereunder may be amended, modified, or revoked at any time. 575.804 Rulemaking. (a) All rules and other public documents are issued by the Secretary of the Treasury upon recommendation of the Director of the Office of Foreign Assets Control. In general, rulemaking by the Office of Foreign Assets Control involves foreign affairs functions of the United States, and for that reason is exempt from the requirements under the Administrative Procedure Act (5 U.S.C. 553) for notice of proposed rulemaking, opportunity for public comment, and delay in effective date. Wherever possible, however, it is the practice of the Office of Foreign Assets Control to receive written submissions or hold informal consultations with interested parties before the issuance of any rule or other public document. (b) Any interested person may petition the Director of the Office of Foreign Assets Control in writing for the issuance, amendment, or repeal of any rule. 575.805 Delegation by the Secretary of the Treasury. Any action which the Secretary of the Treasury is authorized to take pursuant to Executive Order No. 12723 and Executive Order No. 12725 may be taken by the Director, Office of Foreign Assets Control, or by any other person to whom the Secretary of the Treasury has delegated authority so to act. 575.806 Rules governing availability of information. (a) The records of the Office of Foreign Assets Control required by the Freedom of Information Act (5 U.S.C. 552) to be made available to the public shall be made available in accordance with the definitions, procedures, requirements for payment of fees, and other provisions of the Regulations on the Disclosure of Records of the Departmental Offices and of other bureaus and offices of the Department of Treasury issued under 5 U.S.C. 552 and published in part 1 of this title. (b) The records of the Office of Foreign Assets Control required by the Privacy Act (5 U.S.C. 552a) to be made available to an individual shall be made available in accordance with the definitions, procedures, requirements for payment of fees, and other provisions of the Regulations on Disclosure of Records of the Departmental Offices and of other bureaus and offices of the Department of the Treasury issued under 5 U.S.C. 552a and published in part 1 of this title. (c) Any form used in connection with the Iraqi Sanctions Regulations may be obtained in person from or by writing to the Office of Foreign Assets Control, U.S. Department of the Treasury, 1500 Pennsylvania Avenue, NW., Washington, DC 20220. [57 FR 1391, Jan. 14, 1992] Subpart I -- Paperwork Reduction Act 575.901 Paperwork Reduction Act notice. The information collection requirements in 575.202(d), 575.503, 575.506, 575.509 - 575.511, 575.517, 575.518, 575.520, 575.521, 575.601, 575.602, 575.603, 575.703, and 575.801 have been approved by the Office of Management and Budget and assigned control number 1505 - 0130. The information collection requirements of 575.604 and the use of agency form TDF 90 - 22.40 have been approved by the Office of Management and Budget and assigned control number 1505 - 0128. The information collection requirements of 575.605 and the use of agency form 90 - 22.41 have been approved by the Office of Management and Budget and assigned control number 1505 - 0129. [57 FR 6297, Feb. 24, 1992]