[Title 31 CFR B]
[Code of Federal Regulations (annual edition) - July 1, 2002 Edition]
[Title 31 - MONEY AND FINANCE: TREASURY]
[Part 2 - NATIONAL SECURITY INFORMATION]
[Subpart B - Derivative Classification]
[From the U.S. Government Printing Office]


31MONEY AND FINANCE: TREASURY12002-07-012002-07-01falseBSubpart BMONEY AND FINANCE: TREASURYNATIONAL SECURITY INFORMATION
                  Subpart B--Derivative Classification



Sec. 2.9  Derivative Classification Authority.

    Designations of derivative classification authority for national 
security information are contained in Treasury Order 102-19 (or 
successor order). The authority to derivatively classify inheres within 
the office and may be exercised by a person acting in that capacity. 
There may be additional redelegations of derivative classification 
authority made pursuant to TO 102-19 (or successor order). Officials 
identified in Treasury Order 102-19 (or successor order) may also 
administratively control and decontrol sensitive but unclassified 
information using the legend ``Limited Official Use'' and may redelegate 
their authority to control and decontrol. Such redelegations shall be in 
writing on TD F 71-01.20 ``Designation of Controlling/Decontrolling 
Officials'' (or successor form).

[63 FR 14357, Mar. 25, 1998]



Sec. 2.10  Listing derivative classification authorities.

    Delegations of derivative classification authority to officials not 
otherwise identified in Sec. 2.9, shall be in writing and reported 
annually each October 15th to the Departmental Director of Security on 
TD F 71-01.18 (Report of Authorized Derivative Classifiers). Such 
delegations shall be limited to the minimum number absolutely required 
for efficient administration. Periodic reviews and evaluations of such 
delegations shall be made by the Departmental Director of Security to 
ensure that officials so designated have demonstrated a continuing need 
to exercise such authority. If after reviewing and evaluating the 
information the Departmental Director of Security determines that such 
officials have not demonstrated a continuing need to exercise such 
authority, the Departmental Director of Security shall recommend to the 
Assistant Secretary (Management), as warranted, the reduction or 
elimination of such authority. The Assistant Secretary (Management) 
shall take appropriate action in consultation with the affected 
official(s) and the Departmental Director of Security. Such action may 
include relinquishment of this authority where the Assistant Secretary 
(Management) determines that a firm basis for retention does not exist.



Sec. 2.11  Use of derivative classification [2.1].

    The application of derivative classification markings is a 
responsibility of those who incorporate, paraphrase, restate, or 
generate in new form information that is already classified, and of 
those who apply markings in accordance with instructions from an 
authorized original classifier or in accordance with an approved 
classification guide.

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If an individual who applies derivative classification markings believes 
that the paraphrasing, restating or summarizing of classified 
information has changed the level of or removed the basis for 
classification, that person must consult an appropriate official of the 
originating agency or office of origin who has the authority to upgrade, 
downgrade or declassify the information for a final determination. A 
sample marking of derivatively classified documents is set forth in 
Sec. 2.13.



Sec. 2.12  Classification guides.

    (a) General [2.2(a)]. A classification guide is a reference manual 
which assists document drafters and document classifiers in determining 
what types or categories of material have already been classified. The 
classification guide shall, at a minimum:
    (1) Identify and categorize the elements of information to be 
protected;
    (2) State which classification level applies to each element or 
category of information; and
    (3) Prescribe declassification instructions for each element or 
category of information in terms of:
    (i) A period of time,
    (ii) The occurrence of an event, or
    (iii) A notation that the information shall not be declassified 
automatically without the approval of the originating agency i.e., 
``OADR''.
    (b) Review and Record Requirements [2.2(a)]. (1) Each classification 
guide shall be kept current and shall be reviewed at least once every 
two years and updated as necessary. Each office within the Departmental 
Offices and the respective offices of each Treasury bureau possessing 
original classification authority for national security information 
shall maintain a list of all classification guides in current use by 
them. A copy of each such classification guide in current use shall be 
furnished to the Departmental Director of Security who shall maintain 
them on behalf of the Assistant Secretary (Management).
    (2) Each office and bureau that prepares and maintains a 
classification guide shall also maintain a record of individuals 
authorized to apply derivative classification markings in accordance 
with a classification guide. This record shall be maintained on TD F 71-
01.18 (Report of Authorized Derivative Classifiers) which shall be 
reported annually each October 15th to the Departmental Director of 
Security.
    (c) Waivers [2.2(c)]. Any authorized official desiring a waiver of 
the requirement to issue a classification guide shall submit in writing 
to the Assistant Secretary (Management) a request for approval of such a 
waiver. Any request for a waiver shall contain, at a minimum, an 
evaluation of the following factors:
    (1) The ability to segregate and describe the elements of 
information;
    (2) The practicality of producing or disseminating the guide because 
of the nature of the information;
    (3) The anticipated usage of the guide as a basis for derivative 
classification; and
    (4) The availability of alternative sources for derivatively 
classifying the information in a uniform manner.



Sec. 2.13  Derivative identification and markings [1.5(c) and 2.1(b)].

    Information classified derivatively on the basis of source documents 
or classification guides shall bear all markings prescribed in Sec. 2.7 
(a) through (f), as are applicable. Information for these markings shall 
be taken from the source document or instructions in the appropriate 
classification guide.
    (a) Classification Authority. The authority for classification shall 
be shown as follows:

Derivatively Classified by _____________________________________________
Office _________________________________________________________________
Derived from____________________________________________________________
Declassify on___________________________________________________________


If a document is classified on the basis of more than one source 
document or classification guide, the authority for classification shall 
be shown on the ``DERIVED FROM'' line as follows: ``MULTIPLE CLASSIFIED 
SOURCES''. In these cases, the derivative classifier must maintain the 
identification of each source with the file or record copy of the 
derivatively classified document. A document derivatively classified on 
the basis of a source document that is marked ``MULTIPLE CLASSIFIED 
SOURCES'' shall cite the source document on its ``DERIVED FROM'' line 
rather than

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the term: ``MULTIPLE CLASSIFIED SOURCES''. Preparers of such 
documentation shall ensure that the identification of the derivative 
classifier is indicated. Use of the term ``MULTIPLE CLASSIFIED 
SOURCES,'' is not to be a substitute for the identity of the derivative 
classification authority.
    (b) Downgrading and Declassification Instructions. Dates or events 
for automatic downgrading or declassification shall be carried forward 
from the source document. This includes the notation ``ORIGINATING 
AGENCY'S DETERMINATION REQUIRED'' to indicate that the document is not 
to be downgraded or declassified automatically, or instructions as 
directed by a classification guide, which shall be shown on a 
``DOWNGRADE TO'' or ``DECLASSIFY ON'' line as follows:

DOWNGRADE TO____________________________________________________________

ON (date, description of event, or OADR) or,

DECLASSIFY ON (date, description of event, or OADR)