[Federal Register Volume 63, Number 47 (Wednesday, March 11, 1998)]
[Proposed Rules]
[Pages 11858-11862]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-6201]


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DEPARTMENT OF DEFENSE

Department of the Army

32 CFR Part 507


Manufacture, Sale, Wear, Commercial Use and Quality Control of 
Heraldic Items

AGENCY: Department of the Army, DoD.

ACTION: Proposed rule.

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SUMMARY: This proposed revision authorizes the manufacture and sale of 
full size military medals and decorations. In the past the manufacture 
and sale of these items was prohibited except under Government contract 
through the Defense Personnel Support Center. In coordination with all 
the Services, the Office of the Secretary of Defense approved the 
manufacture and sale of full size military medals and decorations with 
the provision that no version of the Medal of Honor can be manufactured 
except under Government contract with the Defense Personnel Support 
Center. This proposed rule also

[[Page 11859]]

revises the Department of the Army policy (Army Regulation 672-8) 
governing the manufacture, sale, reproduction, possession, and wearing 
of military decorations, medals, badges, and insignia. This proposal 
establishes responsibility for authorizing the incorporation of 
insignia designs in commercial articles; adds procedures for processing 
a request to use Army insignia and the Army emblem design in 
advertisement or promotional materials; clarifies insignia items that 
are controlled heraldic items; and defines the certification process 
for heraldic items. This proposal has a direct affect on Departments of 
the Army and Air Force personnel who design, procure from private 
industry and who wear military insignia.

DATES: Comments must be received no later than April 10, 1998.

ADDRESSES: Director, The Institute of Heraldry, 9325 Gunston Road, Room 
S-112, Fort Belvoir, Virginia 22060-5579.

FOR FURTHER INFORMATION CONTACT:
Stanley W. Haas, Chief, Technical and Production Division, telephone 
(703) 806-4984.

SUPPLEMENTARY INFORMATION: The wear, manufacture, and sale of 
decorations, medals, badges, and insignia is restricted by 18 U.S.C. 
701 and 704. The Institute of Heraldry, U.S. Army has been designated 
to act in behalf of the Department of Defense, Department of the Army 
and Department of the Air Force in establishing regulations governing 
control in manufacture and quality.

Executive Order 12866

    This rule is not a major rule as defined by Executive Order 12866.

Regulatory Flexibility Act

    The Regulatory Flexibility Act has no bearing on this rule.

Paperwork Reduction Act

    This rule does not contain reporting or record keeping requirements 
subject to the Paperwork Reduction Act.

List of Subjects in 32 CFR Part 507

    Decorations, medals, awards.

    Accordingly, 32 CFR Part 507 is proposed to be revised as follows:

PART 507--MANUFACTURE AND SALE OF DECORATIONS, MEDALS, BADGES, 
INSIGNIA, COMMERCIAL USE OF HERALDIC DESIGNS AND HERALDIC QUALITY 
CONTROL PROGRAM

Subpart A--Introduction

Sec.
507.1  Purpose.
507.2  References.
507.3  Explanation of abbreviations and terms.
507.4  Responsibilities.
507.5  Statutory authority.

Subpart B--Manufacture and Sale of Decorations, Medals, Badges, and 
Insignia

507.6  Authority to manufacture.
507.7  Authority to sell.
507.8  Articles authorized for manufacture and sale.
507.9  Articles not authorized for manufacture or sale.

Subpart C--Commercial Use of Heraldic Designs

507.10  Incorporation of designs or likenesses of approved designs 
in commercial articles.
507.11  Reproduction of designs.
507.12  Possession and wearing.

Subpart D--Heraldic Quality Control Program

507.13  General.
507.14  Controlled heraldic items.
507.15  Certification of heraldic items.
507.16  Violations and penalties.
507.17  Procurement and wear of heraldic items.
507.18  Processing complaints of alleged breach of policies.

    Authority: 10 U.S.C. 3012, 18 U.S.C. 701, 18 U.S.C. 702.

Subpart A--Introduction


507.1  Purpose.

    This part prescribes the Department of the Army and the Air Force 
policy governing the manufacture, sale, reproduction, possession, and 
wearing of military decorations, medals, badges, and insignia. It also 
establishes the Heraldic Item Quality Control Program to improve the 
appearance of the Army and Air Force by controlling the quality of 
heraldic items purchased from commercial sources.


Sec. 507.2  References.

    Related publications are listed in paragraphs (a) through (f) of 
this section. (A related publication is merely a source of additional 
information. The user does not have to read it to understand this 
part). Copies of referenced publications may be reviewed at Army and 
Air Force Libraries or may be purchased from the National Technical 
Information Services, U.S. Department of Commerce, 5285 Port Royal 
Road, Springfield, VA 22161.
    (a) AFI 36-2903, Dress and Personal Appearance of Air Force 
Personnel.
    (b) AR 360-5, Public Information.
    (c) AR 670-1, Wear and Appearance of Army Uniforms and Insignia.
    (d) AR 840-1, Department of the Army Seal, and Department of the 
Army emblem and Branch of Service Plaques.
    (e) AR 840-10, Heraldic Activities, Flags, Guidons, Streamers, 
Tabards and Automobile Plates.
    (f) AFR 900-3, Department of the Air Force Seal, Organizational 
Emblems, Use and Display of Flags, Guidons, Streamers, and Automobile 
and Aircraft Plates.


Sec. 507.3  Explanation of abbreviations and terms.

    (a) Abbreviations.
    (1) AFB--Air Force Base.
    (2) DA--Department of the Army.
    (3) DCSPER--Deputy Chief of Staff for Personnel.
    (4) DPSC--Defense Personnel Support Center.
    (5) DUI--distinctive unit insignia.
    (6) ROTC--Reserve Officers' Training Corps.
    (7) SSI--shoulder sleeve insignia.
    (8) TIOH--The Institute of Heraldry.
    (9) USAF--United States Air Force.
    (b) Terms.
    (1) Cartoon. A drawing six times actual size, showing placement of 
stitches, color and size of yarn and number of stitches.
    (2) Certificate of Authority to Manufacture. A certificate 
assigning manufacturers a hallmark and authorizing manufacture of 
heraldic items.
    (3) Hallmark. A distinguishing mark consisting of a letter and 
numbers assigned to certified manufacturers for use in identifying 
manufacturers of insignia.
    (4) Heraldic items. All items worn on the uniform to indicate unit, 
skill, branch, award or identification and a design has been 
established by TIOH on an official drawing.
    (5) Letter of Agreement. A form signed by manufacturers before 
certification, stating that the manufacturer agrees to produce heraldic 
items in accordance with specific requirements.
    (6) Letter of Authorization. A letter issued by TIOH that 
authorizes the manufacture of a specific heraldic items after quality 
assurance inspection of a preproduction sample.
    (7) Tools. Hubs, dies, cartoons, and drawings used in the 
manufacture of heraldic items.


Sec. 507.4  Responsibilities.

    (a)  Deputy Chief of Staff for Personnel (DCSPER), Army. The DCSPER 
has staff responsibility for heraldic activities in the Army.
    (b) The Director, The Institute of Heraldry (TIOH). The Director, 
TIOH, will--
    (1) Monitor the overall operation of the Heraldic Quality Control 
Program.
    (2) Authorize the use of insignia designs in commercial items.

[[Page 11860]]

    (3) Certify insignia manufacturers.
    (4) Inspect the quality of heraldic items.
    (c) The Commander, Air Force Personnel Center, Randolph AFB, TX 
78150-4739. The Commander has staff responsibility for heraldic 
activities in the Air Force.
    (d) The Chief, Air Force Personnel Center Commander's Programs 
Branch (HQ AFPC/DPSFC), 550 C Street West, Suite 37, Randolph AFB, TX 
78150-4739. The Chief, Commander's Programs Branch is responsible for 
granting permission for the incorporation of certain Air Force badges 
and rank insignia designs in commercial items.
    (e) Commander, Air Force Historical Research Agency (AFHRA/RSO), 
Maxwell AFB, AL 36112-6424. The Commander, AFHRA/RSO, is responsible 
for granting permission for use of the Air Force seal, coat of arms, 
and crest.
    (f) Commanders. Commanders are responsible for purchasing heraldic 
items that have been produced by manufacturers certified by TIOH. 
Commanders will ensure that only those heraldic items that are of 
quality and design covered in the specification and that have been 
produced by certified manufacturers are worn by personnel under their 
command.


Sec. 507.5  Statutory authority.

    (a) The wear, manufacture, and sale of military decorations, 
medals, badges, their components and appurtenances, or colorable 
imitations of them, are governed by section 704, title 18, United 
States Code (18 U.S.C. 704).
    (b) The manufacture, sale, possession, and reproduction of badges, 
identification cards, insignia, or other designs, prescribed by the 
head of a U.S. department or agency, or colorable imitations of them, 
are governed by Title 18, United States Code, Section 701 (18 U.S.C. 
701).
    (c) This part incorporates the statutory provisions.

Subpart B--Manufacture and Sale of Decorations, Medals, Badges, and 
Insignia


Sec. 507.6  Authority to manufacture.

    (a) A certificate of authority to manufacture heraldic articles may 
be granted by the Institute of Heraldry.
    (1) Certificates of authority will be issued only to companies who 
have manufacturing capability and agree to manufacture heraldic items 
according to applicable specifications or purchase descriptions.
    (2) The certificate of authority is valid only for the individual 
or corporation indicated.
    (3) A hallmark will be assigned to each certified manufacturer. All 
insignia manufactured will bear the manufacturer's hallmark.
    (b) A certificate of authority may be revoked or suspended under 
the procedures prescribed in subpart D of this part.
    (c) Manufacturers will submit a preproduction sample to TIOH of 
each item they manufacture for certification under the Heraldic Quality 
Control Program. A letter of certification authorizing manufacture of 
each specific item will be issued provided the sample meets quality 
assurance standards.
    (d) A copy of the certified manufacturer's list will be furnished 
to the Army and Air Force Exchange Service and, upon request, to Army 
and Air Force commanders.


Sec. 507.7  Authority to sell.

    No certificate of authority to manufacture is required to sell 
articles listed in Sec. 507.8 of this part; however, sellers are 
responsible for insuring that any article they sell is manufactured in 
accordance with Government specifications using government furnished 
tools, bears a hallmark assigned by TIOH, and that the manufacturer has 
received a certification to manufacture that specific item prior to 
sale.


Sec. 507.8  Articles authorized for manufacture and sale.

    (a) The articles listed in paragraphs (a)(1) through (10) of this 
section are authorized for manufacture and sale when made in accordance 
with approved specifications, purchase descriptions or drawings.
    (1) All authorized insignia (AR 670-1 and AFI 36-2903).
    (2) Appurtenances and devices for decorations, medals, and ribbons 
such as oak leaf clusters, service stars, arrowheads, V-devices, and 
clasps.
    (3) Combat, special skill, occupational and qualification badges 
and bars.
    (4) Identification badges.
    (5) Fourrageres and lanyards.
    (6) Lapel buttons.
    (7) Decorations, service medals, and ribbons, except for the Medal 
of Honor.
    (8) Replicas of decorations and service medals for grave markers. 
Replicas are to be at least twice the size prescribed for decorations 
and service medals.
    (9) Service ribbons for decorations, service medals, and unit 
awards.
    (10) Rosettes.
    (11) Army emblem and branch of service plaques.
    (b) Variations from the prescribed specifications for the items 
listed in paragraph (a) of this section are not permitted without prior 
approval, in writing, by TIOH.


Sec. 507.9  Articles not authorized for manufacture or sale.

    The following articles are not authorized for manufacture and sale, 
except under contract with DPSC:
    (a) The Medal of Honor.
    (b) Service ribbon for the Medal of Honor.
    (c) Rosette for the Medal of Honor.
    (d) Service flags (prescribed in AR 840-10 or AFR 900-3).
    (e) Army seal.
    (f) Commercial articles for public sale that incorporates designs 
or likenesses of decorations, service medals, and service ribbons.
    (g) Commercial articles for public sale that incorporate designs or 
likenesses of designs of insignia listed in Sec. 507.8 of this part, 
except when authorized by the Service concerned.

Subpart C--Commercial Use of Heraldic Designs


Sec. 507.10  Incorporation of designs or likenesses of approved designs 
in commercial articles.

    The policy of the Department of the Army and the Department of the 
Air Force is to restrict the use of military designs for the needs or 
the benefit of personnel of their Services.
    (a) Except as authorized in writing by the Department of the Army 
or the Department of the Air Force, as applicable, the manufacture of 
commercial articles incorporating designs or likenesses of official 
Army/Air Force heraldic items is prohibited. However, certain designs 
or likenesses of insignia such as badges or organizational insignia may 
be incorporated in articles manufactured for sale provided that 
permission has been granted as specified in paragraphs (a)(1) and (2) 
of this section.
    (1) Designs approved for use of the Army. The Director, The 
Institute of Heraldry, 9325 Gunston Road, Room S-112, Fort Belvoir, VA 
22060-5579, is responsible for granting permission for the 
incorporation of certain Army insignia designs and the Army emblem in 
commercial articles manufactured for sale. Permission for such use will 
be in writing. Commanders of units authorized a SSI or DUI may 
authorize the reproduction of their SSI or DUI on commercial articles 
such as shirts, tie tacks, cups, or plaques. Permission for use of a 
SSI or DUI will be submitted in writing to the commander concerned. 
Authorization for incorporation of

[[Page 11861]]

designs or likenesses of designs in commercial items will be granted 
only to those manufacturers who agree to offer these items for sale 
only to Army and Air Force Exchange Service and outlets that sell 
primarily to military personnel and their dependents.
    (2) Designs approved for use of the Air Force. Headquarters, Air 
Force Personnel Center, Chief, Commander's Programs Branch (HQ AFPC/
DPSFC), 550 C Street West, Suite 37, Randolph AFB, TX 78150-4739, is 
responsible for granting permission for the incorporation of certain 
Air Force designs for commercial articles manufactured for sale. The 
Commander, Air Force Historical Research Agency, AFHRA/RSO, Maxwell 
AFB, AL 36112-6678, is responsible for granting permission for the 
incorporation of the coat of arms, crest, seal and organizational 
emblems. Such permission will be in writing. Authorization for 
incorporation of designs or likenesses of designs in commercial items 
will be granted only to those manufacturers who agree to offer these 
items for sale only to the Army and Air Force Exchange Service, or to 
those outlets that sell primarily to military personnel and their 
dependents.
    (b) In the case of the Honorable Service lapel button, a general 
exception is made to permit the incorporation of that design in 
articles manufactured for public sale provided that such articles are 
not suitable for wear as lapel buttons or pins.


Sec. 507.11  Reproduction of designs.

    (a) The photographing, printing, or, in any manner making or 
executing any engraving, photograph, print, or impression in the 
likeness of any decoration, service medal, service ribbon, badge, lapel 
button, insignia, or other device, or the colorable imitation thereof, 
of a design prescribed by the Secretary of the Army or the Secretary of 
the Air Force for use by members of the Army or the Air Force is 
authorized provided that such reproduction does not bring discredit 
upon the military service and is not used to defraud or to misrepresent 
the identification or status of an individual, organization, society, 
or other group of persons.
    (b) The use for advertising purposes of any engraving, photograph, 
print, or impression of the likeness of any Department of the Army of 
Department of the Air Force decoration, service medal, service ribbon, 
badge, lapel button, insignia, or other device (except the Honorable 
Service lapel button) is prohibited without prior approval, in writing, 
by the Secretary of the Army or the Secretary of the Air Force except 
when used to illustrate a particular article that is offered for sale. 
Request for use of Army insignia in advertisements or promotional 
materials will be processed through public affairs channels in 
accordance with AR 360-5, paragraph 3-37.
    (c) The reproduction in any manner of the likeness of any 
identification card prescribed by Department of the Army or Department 
of the Air Force is prohibited without prior approval in writing by the 
Secretary of the Army or Secretary of the Air Force.


Sec. 507.12  Possession and wearing.

    (a) The wearing of any decoration, service medal, badge, service 
ribbon, lapel button, or insignia prescribed or authorized by the 
Department of the Army and the Department of the Air Force by any 
person not properly authorized to wear such device, or the use of any 
decoration, service medal, badge, service ribbon, lapel button, or 
insignia to misrepresent the identification or status of the person by 
whom such is worn is prohibited. Any person who violates the provision 
of this section is subject to punishment as prescribed in the statutes 
referred to in Sec. 507.5 of this part.
    (b) Mere possession by a person of any of the articles prescribed 
in Sec. 507.8 of this part is authorized provided that such possession 
is not used to defraud or misrepresent the identification or status of 
the individual concerned.
    (c) Articles specified in Sec. 507.8 of this part, or any 
distinctive parts including suspension ribbons and service ribbons) or 
colorable imitations thereof, will not be used by any organization, 
society, or other group of persons without prior approval in writing by 
the Secretary of the Army or the Secretary of the Air Force.

Subpart D--Heraldic Quality Control Program


Sec. 507.13  General.

    The heraldic quality control program provides a method of ensuring 
that insignia items are manufactured with tools and specifications 
provided by TIOH.


Sec. 507.14  Controlled heraldic items.

    The articles listed in Sec. 507.8 of this part are controlled 
heraldic items and will be manufactured in accordance with Government 
specifications using Government furnished tools or cartoons. Tools and 
cartoons are not provided to manufacturers for the items in paragraphs 
(a) through (e) of this section. However, manufacture will be in 
accordance with the Government furnished drawings.
    (a) Shoulder loop insignia, ROTC, U.S. Army.
    (b) Institutional SSI, ROTC, U.S. Army.
    (c) Background trimming/flashes, U.S. Army.
    (d) U.S. Air Force organizational emblems for other than major 
commands.
    (e) Hand embroidered bullion insignia.


Sec. 507.15  Certification of heraldic items.

    A letter of certification to manufacture each heraldic item, except 
those listed in Sec. 507.14(a) through (e) of this part, will be 
provided to the manufacturer upon submission of a preproduction sample. 
Manufacture and sale of these items is not authorized until the 
manufacturer receives a certification letter from TIOH.


Sec. 507.16  Violations and penalties.

    A certificate of authority to manufacture will be revoked by TIOH 
upon intentional violation by the holder thereof of any of the 
provisions of this part, or as a result of not complying with the 
agreement signed by the manufacturer in order to receive a certificate. 
Such violations are also subject to penalties prescribed in the Acts of 
Congress (Sec. 507.5 of this part). A repetition or continuation of 
violations after official notice thereof will be deemed prima facie 
evidence of intentional violation.


Sec. 507.17  Procurement and wear of heraldic items.

    (a) The provisions of this part do not apply to contracts awarded 
by the Defense Personnel Support Center for manufacture and sale to the 
U.S. Government.
    (b) All Army and Air Force service personnel who wear quality 
controlled heraldic items that were purchased from commercial sources 
will be responsible for ensuring that the items were produced by a 
certified manufacturer. Items manufactured by certified manufacturers 
will be identified by a hallmark and/or certificate label certifying 
the item was produced in accordance with specifications.
    (c) Commanders will ensure that only those heraldic items that are 
of the quality and design covered in the specifications and that have 
been produced by certified manufacturers are worn by personnel under 
their command. Controlled heraldic items will be procured only from 
manufacturers certified by TIOH. Commanders procuring controlled

[[Page 11862]]

heraldic items, when authorized by local procurement procedures, may 
forward a sample insignia to TIOH for quality assurance inspection if 
the commander feels the quality does not meet standards.


Sec. 507.18  Processing complaints of alleged breach of policies.

    The Institute of Heraldry may revoke or suspend the certificate of 
authority to manufacture if there are breaches of quality control 
policies by the manufacturer. As used in this paragraph, the term 
quality control policies includes the obligation of a manufacturer 
under his or her ``Agreement to Manufacture,'' the quality control 
provisions of this part, and other applicable instructions provided by 
TIOH.
    (a) Initial processing. (1) Complaints and reports of an alleged 
breach of quality control policies will be forwarded to the Director, 
The Institute of Heraldry, 9325 Gunston Road, Room S-112, Fort Belvoir, 
VA 22060-5579 (hereinafter referred to as Director).
    (2) The Director may direct that an informal investigation of the 
complaint or report be conducted.
    (3) If such investigation is initiated, it will be the duty of the 
investigator to ascertain the facts in an impartial manner. Upon 
conclusion of the investigation, the investigator will submit a report 
to the appointing authority containing a summarized record of the 
investigation together with such findings and recommendations as may be 
appropriate and warranted by the facts.
    (4) The report of investigation will be forwarded to the Director 
for review. If it is determined that a possible breach of quality 
control policies has occurred, the Director will follow the procedures 
outlined in paragraphs (b) through (g) of this section.
    (b) Voluntary performance. The Director will transmit a registered 
letter to the manufacturer advising of the detailed allegations of 
breach and requesting assurances of voluntary compliance with quality 
control policies. No further action is taken if the manufacturer 
voluntarily complies with the quality control policies; however, any 
further reoccurrence of the same breach will be considered refusal to 
perform.
    (c) Refusal to perform. (1) If the manufacturer fails to reply 
within a reasonable time to the letter authorized by paragraph (b) of 
this section, or refuse to give adequate assurances that future 
performance will conform to quality control policies, or indicates by 
subsequent conduct that the breach is continuous or repetitive, or 
disputes the allegations of breach, the Director will direct that a 
public hearing be conducted on the allegations.
    (2) A hearing examiner will be appointed by appropriate orders. The 
examiner may be either a commissioned offer or a civilian employee 
above the grade of GS-7.
    (3) The specific written allegations, together with other pertinent 
material, will be transmitted to the hearing examiner for introduction 
as evidence at the hearing.
    (4) Manufacturers may be suspended for failure to return a loaned 
tool without referral to hearing specified in paragraph (c)(1) of this 
section; however, the manufacturer will be advised, in writing, that 
tools are overdue and suspension will take effect if not returned 
within the specified time.
    (d) Notification to the manufacturer by examiner. Within a 7-day 
period following receipt by the examiner of the allegations and other 
pertinent material, the examiner will transmit a registered letter of 
notification to the manufacturer informing him or her of the following:
    (1) Specific allegations.
    (2) Directive of the Director requiring the holding of a public 
hearing on the allegations.
    (3) Examiner's decision to hold the public hearing at a specific 
time, date, and place that will be not earlier than 30 days from the 
date of the letter of notification.
    (4) Ultimate authority of the Director to suspend to revoke the 
certificate of authority should the record developed at the hearing so 
warrant.
    (5) Right to--
    (i) A full and fair public hearing.
    (ii) Be represented by counsel at the hearing.
    (iii) Request a change in the date, time, or place of the hearing 
for purposes of having reasonable time in which to prepare the case.
    (iv) Submit evidence and present witnesses in his or her own 
behalf.
    (v) Obtain, upon written request filed before the commencement of 
the hearing, at no cost, a verbatim transcript of the proceedings.
    (e) Public hearing by examiner. (1) At the time, date, and place 
designated in accordance with paragraph (d)(3) of this section, the 
examiner will conduct the public hearing.
    (i) A verbatim record of the proceeding will be maintained.
    (ii) All previous material received by the examiner will be 
introduced into evidence and made part of the record.
    (iii) The Government may be represented by counsel at the hearing.
    (2) Subsequent to the conclusion of the hearing, the examiner will 
make specific findings on the record before him or her concerning each 
allegation.
    (3) The complete record of the case will be forwarded to the 
Director.
    (f) Action by the Director. (1) The Director will review the record 
of the hearing and either approve or disapprove the findings.
    (2) Upon arrival of a finding of breach of quality control 
policies, the manufacturer will be so advised.
    (3) After review of the findings, the certificate of authority may 
be revoked or suspended. If the certificate of authority is revoked or 
suspended, the Director will--
    (i) Notify the manufacturer of the revocation or suspension.
    (ii) Remove the manufacturer from the list of certified 
manufacturers.
    (iii) Inform the Army and Air Force Exchange Service of the action.
    (g) Reinstatement of certificate of authority: The Director may, 
upon receipt of adequate assurance that the manufacturer will comply 
with quality control policies, reinstate a certificate of authority 
that has been suspended or revoked.
Thomas B. Proffitt,
Director.
[FR Doc. 98-6201 Filed 3-10-98; 8:45 am]
BILLING CODE 3710-08-M