[Federal Register Volume 64, Number 35 (Tuesday, February 23, 1999)]
[Rules and Regulations]
[Pages 8715-8720]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-4328]
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DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 539
Weapons of Mass Destruction Trade Control Regulations:
Implementation of Executive Order 13094
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Final rule.
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SUMMARY: The Office of Foreign Assets Control is issuing the Weapons of
Mass Destruction Trade Control Regulations to implement additional
import measures with respect to the proliferation of nuclear,
biological, and chemical weapons of mass destruction and of the means
of delivering such weapons.
EFFECTIVE DATE: February 23, 1999.
FOR FURTHER INFORMATION CONTACT: John T. Roth, Chief, Policy Planning
and Program Management, tel.: 202/622-2500, Dennis P. Wood, Chief of
Compliance Programs, tel.: 202/622-2490, or William B. Hoffman, Chief
Counsel, tel.: 202/622-2410, Office of Foreign Assets Control,
Department of the Treasury, Washington, DC 20220.
SUPPLEMENTARY INFORMATION:
Electronic Availability
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Wide Web (Home Page) = http://www.fedworld.gov; FTP = ftp.fedworld.gov
(192.239.92.205). Additional information concerning the programs of the
Office of Foreign Assets Control is available for downloading from the
Office's Internet Home Page: http://www.treas.gov/ofac, or in fax form
through the Office's 24-hour fax-on-demand service: call 202/622-0077
using a fax machine, fax modem, or (within the United States) a touch-
tone telephone.
Background
In Executive Order 12938 of November 14, 1994 (59 FR 59099, 3 CFR,
1994 Comp., p. 950), President Clinton declared a national emergency
with respect to the proliferation of nuclear, biological, and chemical
weapons (``weapons of mass destruction'') and of the means of
delivering such weapons, invoking the authority, inter alia, of the
International Emergency Economic Powers Act, 50 U.S.C. 1701-1706
(``IEEPA''), and the Arms Export Control Act, as amended, 22 U.S.C.
2751-2799aa-2. Executive Order 12938 provided, among other things, that
the Secretary of State and the Secretary of Commerce were to use their
respective authorities to control certain exports if either Secretary
determined that the export would assist a country in acquiring the
capability to develop, produce, stockpile, deliver, or use weapons of
mass destruction or their means of delivery. Executive Order 12938 also
authorized the imposition of measures on a foreign person with respect
to chemical and biological weapons proliferation if the Secretary of
State determined that the foreign person, on or after November 16,
1990, knowingly and materially contributed to the efforts of any
foreign country, project, or entity to use, develop, produce,
stockpile, or otherwise acquire chemical or biological weapons. These
measures could include a prohibition on the procurement by the United
States Government of goods or services from any such foreign person and
a prohibition on the importation into the United States of products
produced by that foreign person. Finally, the Secretary of State was
authorized to impose certain measures against foreign countries found
to have used or made substantial preparations to use chemical or
biological weapons in violation of international law, or developed,
produced, stockpiled, or otherwise acquired chemical or biological
weapons in violation of international law.
In Executive Order 13094 of July 28, 1998 (63 FR 40803, July 30,
1998), the President has taken additional steps with respect to the
national emergency declared in Executive Order 12938. Section 4 of
Executive Order 12938 is amended to authorize the imposition of certain
measures upon a determination by the Secretary of State that a foreign
person has materially contributed or attempted to contribute materially
to the efforts of any foreign country, project, or entity of
proliferation concern to use,
[[Page 8716]]
acquire, design, develop, produce, or stockpile weapons of mass
destruction or missiles capable of delivering such weapons. Executive
Order 13094 provides that a procurement ban, assistance ban, and import
ban are to be imposed on such a foreign person to the extent determined
by the Secretary of State in consultation with the implementing agency
and other relevant agencies. Section 1(a) of Executive Order 13094 also
amends Executive Order 12938 to authorize the Secretary of the Treasury
to prohibit the importation into the United States of goods,
technology, or services, other than information or informational
materials within the meaning of section 203(b)(3) of IEEPA, which have
been produced or provided by a foreign person determined to be subject
to the import ban (a ``designated foreign person''). In implementation
of the import ban contained in section 1(a) of Executive Order 13094,
the Office of Foreign Assets Control of the U.S. Department of the
Treasury is promulgating the Weapons of Mass Destruction Trade Control
Regulations (the ``Regulations'').
Section 539.201 of the Regulations prohibits the importation of
goods, technology, or services produced or provided by a designated
foreign person, other than information or informational materials.
Section 539.202 prohibits related transactions, including brokering,
financing or other participation in the importation into the United
States of any goods, technology, or services produced or provided by a
designated foreign person. Section 539.203 prohibits any transaction by
any United States person or within the United States that evades or
avoids, or attempts to violate, these prohibitions, or any conspiracy
to violate these prohibitions. Since the Regulations involve a foreign
affairs function, the provisions of Executive Order 12866 and the
Administrative Procedure Act (5 U.S.C. 553) (the ``APA'') requiring
notice of proposed rulemaking, opportunity for public participation,
and delay in effective date, are inapplicable. Because no notice of
proposed rulemaking is required for this rule, the Regulatory
Flexibility Act (5 U.S.C. 601-612) does not apply.
Paperwork Reduction Act
As authorized in the APA, the Regulations are being issued without
prior notice and public comment. The collections of information related
to the Regulations are contained in 31 CFR part 501 (the ``Reporting
and Procedures Regulations''). Pursuant to the Paperwork Reduction Act
of 1995 (44 U.S.C. 3507), those collections of information have been
approved by the Office of Management and Budget (``OMB'') under control
number 1505-0164. An adjustment to the approved burden hours to reflect
the additional burden imposed in administering the Regulations has been
filed with OMB. An agency may not conduct or sponsor, and a person is
not required to respond to, a collection of information unless the
collection of information displays a valid control number.
List of Subjects in 31 CFR Part 539
Arms and munitions, Imports, Penalties, Reporting and recordkeeping
requirements, Weapons of mass destruction.
For the reasons set forth in the preamble, 31 CFR part 539 is added
to read as follows:
PART 539--WEAPONS OF MASS DESTRUCTION TRADE CONTROL REGULATIONS
Subpart A--Relation of This Part to Other Laws and Regulations
Sec.
539.101 Relation of this part to other laws and regulations.
Subpart B--Prohibitions
539.201 Prohibited importation of goods, technology, or services.
539.202 Prohibition on import-related transactions.
539.203 Evasions; attempts; conspiracies.
539.204 Exempt transactions.
Subpart C--General Definitions
539.301 Designated foreign person.
539.302 Effective date.
539.303 Entity.
539.304 Entity owned or controlled by a person listed in appendix I
to this part.
539.305 General license.
539.306 Goods, technology, or services produced or provided by a
designated foreign person.
539.307 Importation into the United States.
539.308 Information or informational materials.
539.309 License.
539.310 Person.
539.311 Specific license.
539.312 United States.
539.313 United States person; U.S. person.
Subpart D--Interpretations
539.401 Reference to amended sections.
539.402 Effect of amendment.
539.403 Transactions incidental to a licensed transaction.
539.404 Transshipments through the United States prohibited.
539.405 Importation of goods or technology from third countries.
539.406 Importation into and release from a bonded warehouse or
foreign trade zone.
Subpart E--Licenses, Authorizations and Statements of Licensing Policy
539.501 General and specific licensing procedures.
539.502 Effect of license.
539.503 Exclusion from licenses.
539.504 Departments and agencies of the United States Government.
Subpart F--Reports
539.601 Records and reports.
Subpart G--Penalties
539.701 Penalties.
539.702 Prepenalty notice.
539.703 Response to prepenalty notice; informal settlement.
539.704 Penalty imposition or withdrawal.
539.705 Administrative collection; referral to United States
Department of Justice.
Subpart H--Procedures
539.801 Procedures.
539.802 Delegation by the Secretary of the Treasury.
Subpart I--Paperwork Reduction Act
539.901 Paperwork Reduction Act notice.
Appendix I to Part 539--Designated Foreign Persons
Authority: 3 U.S.C. 301; 22 U.S.C. 2751-2799aa-2; 31 U.S.C.
321(b); 50 U.S.C. 1601-1651, 1701-1706; E.O. 12938, 59 FR 59099, 3
CFR, 1994 Comp., p. 950; E.O. 13094, 63 FR 40803, July 30, 1998.
Subpart A-- Relation of This Part to Other Laws and Regulations
Sec. 539.101 Relation of this part to other laws and regulations.
(a) This part is separate from, and independent of, the other parts
of this chapter, with the exception of part 501 of this chapter, the
provisions of which apply to this part. Actions taken pursuant to part
501 of this chapter with respect to the prohibitions contained in this
part are considered actions taken pursuant to this part. Differing
foreign policy and national security contexts may result in differing
interpretations of similar language among the 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 contained in or issued pursuant to this part
relieves the involved parties from complying with any other applicable
laws or regulations.
Subpart B--Prohibitions
Sec. 539.201 Prohibited importation of goods, technology, or services.
Except as otherwise authorized, the importation into the United
States, on or
[[Page 8717]]
after the effective date, directly or indirectly, of any goods,
technology, or services produced or provided by a designated foreign
person, other than information or informational materials, is
prohibited.
Sec. 539.202 Prohibition on import-related transactions.
Except as otherwise authorized, no United States person may
finance, act as broker for, transfer, transport, or otherwise
participate in the importation into the United States on or after the
effective date of any goods, technology, or services produced or
provided by a designated foreign person, other than information or
informational materials.
Sec. 539.203 Evasions; attempts; conspiracies.
Any transaction by any United States person or within the United
States on or after the effective date that evades or avoids, has the
purpose of evading or avoiding, or attempts to violate any of the
prohibitions set forth in this part is prohibited. Any conspiracy
formed for the purpose of engaging in a transaction prohibited by this
part is prohibited.
Sec. 539.204 Exempt transactions.
(a) Personal communications. The prohibitions contained in this
part do not apply to any postal, telegraphic, telephonic, or other
personal communication, which does not involve the transfer of anything
of value.
(b) Information or informational materials. (1) The prohibitions
contained in this part do not apply to the importation from any
country, or to the exportation to any country, whether commercial or
otherwise, regardless of format or medium of transmission, of any
information or informational materials as defined in Sec. 539.308, or
any transaction directly incident to such importation or exportation.
(2) Paragraph (b)(1) of this section does not exempt from
regulation or authorize transactions related to information or
informational materials not fully created and in existence at the date
of the transaction, or to the substantive or artistic alteration or
enhancement of information or informational materials, or to the
provision of marketing and business consulting services. Examples of
prohibited transactions include, but are not limited to, payment of
advances for information or informational materials not yet created and
completed (with the exception of prepaid subscriptions for mass-market
magazines and other periodical publications that are widely-
circulated); importation into the United States of services to market,
produce or co-produce, create, or assist in the creation of information
or informational materials; and payment of royalties to a designated
foreign person with respect to income received for enhancements or
alterations made by U.S. persons to informational or informational
materials imported from a designated foreign person.
(3) Paragraph (b)(1) of this section does not exempt from
regulation or authorize the importation into the United States of or
transactions incident to the importation into the United States or
leasing of telecommunications transmission facilities (such as
satellite links or dedicated lines) for use in the transmission of any
data.
(c) Travel. The prohibitions contained in this part do not apply to
transactions ordinarily incident to travel to or from any country,
including importation of accompanied baggage for personal use,
maintenance within any country including payment of living expenses and
acquisition of goods or services for personal use, and arrangement or
facilitation of such travel including nonscheduled air, sea, or land
voyages.
Subpart C--General Definitions
Sec. 539.301 Designated foreign person.
The term designated foreign person means any person determined by
the Secretary of State pursuant to section 4(a) of Executive Order
12938 of November 14, 1994 (59 FR 59099, 3 CFR, 1994 Comp., p. 950), as
amended by section 1(a) of Executive Order 13094 of July 28, 1998 (63
FR 40803, July 30, 1998), to be subject to import measures. Designated
foreign persons are any persons listed in appendix I to this part and
any entities owned or controlled by any person listed in appendix I to
this part unless otherwise indicated in appendix I to this part.
Sec. 539.302 Effective date.
The term effective date means the ``effective date'' specified in
the relevant Federal Register notice issued by the Department of State
identifying a designated foreign person. This date is listed after the
name of each designated foreign person in appendix I to this part.
Sec. 539.303 Entity.
The term entity means a partnership, association, trust, joint
venture, corporation, or other organization.
Sec. 539.304 Entity owned or controlled by a person listed in appendix
I to this part.
The term entity owned or controlled by a person listed in appendix
I to this part includes any subsidiaries and branches, wherever
located, of entities listed in appendix I to this part, any successors
to such entities, and any persons acting or purporting to act for or on
behalf of any of the foregoing.
Sec. 539.305 General license.
The term general license means any license the terms of which are
set forth in this part.
Sec. 539.306 Goods, technology, or services produced or provided by a
designated foreign person.
With respect to the prohibitions in Secs. 539.201 and 539.202, the
term goods, technology, or services produced or provided by a
designated foreign person includes but is not limited to the following:
(a) Goods grown, manufactured, extracted, or processed by a
designated foreign person;
(b) Technology developed, owned, licensed, or otherwise controlled
by a designated foreign person;
(c) Services performed by or on behalf of a designated foreign
person, or by a third party under contract, directly or indirectly, to
a designated foreign person, regardless of location.
Sec. 539.307 Importation into the United States.
The term importation into the United States means:
(a) With respect to goods or technology, the bringing of any goods
or technology into the United States, except that in the case of goods
or technology being transported by vessel, importation into the United
States means the bringing of any goods or technology into the United
States with the intent to unlade. See also Sec. 539.404.
(b) With respect to services, the receipt in the United States of
services or of the benefit of services wherever such services may be
performed. The benefit of services is received in the United States if
the services are:
(1) Performed on behalf of or for the benefit of a person located
in the United States;
(2) Received by a person located in the United States;
(3) Received by a person located outside the United States on
behalf of or for the benefit of an entity organized in the United
States; or
(4) Received by an individual temporarily located outside the
United States for the purpose of obtaining such services for use in the
United States.
(c) The following example illustrates the provisions of paragraph
(b) of this section:
Example: An employee of an entity organized in the United States
may not, without specific authorization from the Office of Foreign
Assets Control, receive from
[[Page 8718]]
a designated foreign person consulting services for use in the
United States.
Sec. 539.308 Information or informational materials.
(a) For purposes of this part, the term information or
informational materials includes, but is not limited to, publications,
films, posters, phonograph records, photographs, microfilms,
microfiche, tapes, compact disks, CD ROMs, artworks, and news wire
feeds.
(b) To be considered information or informational materials,
artworks must be classified under chapter heading 9701, 9702, or 9703
of the Harmonized Tariff Schedule of the United States.
Sec. 539.309 License.
Except as otherwise specified, the term license means any license
or authorization contained in or issued pursuant to this part.
Sec. 539.310 Person.
The term person means an individual or entity.
Sec. 539.311 Specific license.
The term specific license means any license not set forth in this
part but issued pursuant to this part.
Sec. 539.312 United States.
The term United States means the United States, its territories and
possessions, and all areas under the jurisdiction or authority thereof.
Sec. 539.313 United States person; U.S. person.
The term United States person or U.S. person means any United
States citizen, permanent resident alien, entity organized under the
laws of the United States (including foreign branches), or any person
in the United States.
Subpart D--Interpretations
Sec. 539.401 Reference to amended sections.
Except as otherwise specified, reference to any provision in or
appendix to this part or chapter or to any regulation, ruling, order,
instruction, direction, or license issued pursuant to this part refers
to the same as currently amended.
Sec. 539.402 Effect of amendment.
Unless otherwise specifically provided, any amendment,
modification, or revocation of any provision in or appendix to this
part or chapter 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 does not affect any act done or omitted, 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 continue and may be enforced as if such
amendment, modification, or revocation had not been made.
Sec. 539.403 Transactions incidental to a licensed transaction.
Any transaction ordinarily incident to a licensed transaction and
necessary to give effect to the licensed transaction is also authorized
by the license. Except as specifically authorized by the terms of the
license, prohibited transactions involving designated foreign persons
not named in the license are not considered incidental to a licensed
transaction and therefore remain prohibited.
Sec. 539.404 Transshipments through the United States prohibited.
(a) The prohibitions in Secs. 539.201 and 539.202 apply to the
importation into the United States, for transshipment or transit, of
goods, technology, or services produced or provided by a designated
foreign person that are intended or destined for third countries.
(b) In the case of goods or technology transported by vessel, the
prohibitions in Secs. 539.201 and 539.202 apply to the unlading in the
United States and the intent to unlade in the United States of goods or
technology produced or provided by a designated foreign person that is
intended or destined for third countries.
Sec. 539.405 Importation of goods or technology from third countries.
Importation into the United States from third countries of goods or
technology is prohibited if undertaken with knowledge or reason to know
that those goods contain raw materials or components produced or
provided by a designated foreign person or technology produced or
provided by a designated foreign person.
Sec. 539.406 Importation into and release from a bonded warehouse or
foreign trade zone.
The prohibitions in Secs. 539.201 and 539.202 apply to importation
into a bonded warehouse or a foreign trade zone of the United States.
Subpart E--Licenses, Authorizations and Statements of Licensing
Policy
Sec. 539.501 General and specific licensing procedures.
For provisions relating to licensing procedures, see part 501,
subpart D, of this chapter. Licensing actions taken pursuant to part
501 of this chapter with respect to the prohibitions contained in this
part are considered actions taken pursuant to this part.
Sec. 539.502 Effect of license.
(a) No license contained in this part, or otherwise issued by or
under the direction of the Director of the Office of Foreign Assets
Control pursuant to this part, authorizes or validates any transaction
effected prior to the issuance of the license, unless the prior
transaction is specifically authorized in such license.
(b) No regulation, ruling, instruction, or license authorizes any
transaction prohibited by 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 authorizes 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 by this part has the effect of
removing from the transaction a prohibition or prohibitions contained
in this part, 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 that would not otherwise exist under
ordinary principles of law in or with respect to any property.
Sec. 539.503 Exclusion from licenses.
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 conferred by any
license. The Director of the Office of Foreign Assets Control also
reserves the right to restrict the applicability of any license to
particular persons, property, transactions, or classes thereof. Such
actions are binding upon all persons receiving actual or constructive
notice of the exclusions or restrictions.
Sec. 539.504 Departments and agencies of the United States Government.
(a) Departments and agencies of the United States Government may by
written authorization signed by the head of the Department or Agency or
his designee provide for:
(1) Procurement contracts necessary to meet U.S. operational
military requirements or requirements under defense production
agreements;
[[Page 8719]]
intelligence requirements; sole source suppliers, spare parts,
components, routine servicing and maintenance of products for the
United States Government; and medical and humanitarian items; and
(2) Performance pursuant to contracts in force as of 12:01 a.m.
EDT, July 29, 1998, under appropriate circumstances.
(b) Such written authorization shall:
(1) Include details about the goods, technology, and services which
have been approved for importation; the rationale for such approval;
and 24-hour-a-day contact information for the approving official or
designee for use by the U.S. Customs Service should questions arise
about an approved import;
(2) Be in the form of license, regulation, order, directive, or
exception;
(3) Include information about the results of prior written
consultation with the Under Secretary of State for Arms Control and
International Security Affairs (through the Office of Chemical,
Biological and Missile Nonproliferation and the Office of the Assistant
Legal Adviser for Political-Military Affairs); and
(4) Be provided to U.S. Customs Service officials upon the
importation of any goods or technology covered by an authorization
described in paragraph (a) of this section in a form which clearly
establishes that the imported goods or technology is covered by the
authorization.
Subpart F--Reports
Sec. 539.601 Records and reports.
For provisions relating to required records and reports, see part
501, subpart C, of this chapter. Recordkeeping and reporting
requirements imposed by part 501 of this chapter with respect to the
prohibitions contained in this part are considered requirements arising
pursuant to this part.
Subpart G--Penalties
Sec. 539.701 Penalties.
(a) Attention is directed to section 206 of the International
Emergency Economic Powers Act (the ``Act'') (50 U.S.C. 1705), which is
applicable to violations of the provisions of any license, ruling,
regulation, order, direction, or instruction issued by or pursuant to
the direction or authorization of the Secretary of the Treasury
pursuant to this part or otherwise under the Act. Section 206 of the
Act, as adjusted by the Federal Civil Penalties Inflation Adjustment
Act of 1990 (Public Law 101-410, as amended, 28 U.S.C. 2461 note),
provides that:
(1) A civil penalty not to exceed $11,000 per violation may be
imposed on any person who violates or attempts to violate any license,
order, or regulation issued under the Act;
(2) Whoever willfully violates or willfully attempts to violate any
license, order, or regulation issued under the Act, upon conviction,
shall be fined not more than $50,000, and if a natural person, may also
be imprisoned for not more than 10 years; and any officer, director, or
agent of any corporation who knowingly participates in such violation
may be punished by a like fine, imprisonment, or both.
(b) The criminal penalties provided in the Act are subject to
increase pursuant to 18 U.S.C. 3571.
(c) Attention is also 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 statement 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 under title 18, United States Code, or imprisoned
not more than five years, or both.
(d) Violations of this part may also be subject to relevant
provisions of other applicable laws.
Sec. 539.702 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, the Director shall
issue to the person concerned a notice of intent to impose a monetary
penalty. This 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 respond. The prepenalty notice also shall inform the
respondent of respondent's right to make a written presentation within
30 days of the date of mailing of the notice as to why a monetary
penalty should not be imposed or why, if imposed, the monetary penalty
should be in a lesser amount than proposed.
Sec. 539.703 Response to prepenalty notice; informal settlement.
(a) Deadline for response. The respondent shall have 30 days from
the date of mailing of the prepenalty notice to make a written response
to the Director of the Office of Foreign Assets Control.
(b) Form and contents of response. The written response need not be
in any particular form, but must 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 respondent believes the penalty should not be
imposed or why, if imposed, it should be in a lesser amount than
proposed.
(c) Informal settlement. In addition or as an alternative to a
written response to a prepenalty notice issued pursuant to this
section, the respondent or respondent's representative may contact the
Office of Foreign Assets Control as advised in the prepenalty notice to
propose the settlement of allegations contained in the prepenalty
notice and related matters. In the event of settlement at the
prepenalty stage, the claim proposed in the prepenalty notice will be
withdrawn, the respondent is not required to take a written position on
allegations contained in the prepenalty notice, and the Office of
Foreign Assets Control will make no final determination as to whether a
violation occurred. The amount accepted in settlement of allegations in
a prepenalty notice may vary from the civil penalty that might finally
be imposed in the event of a formal determination of violation. In the
event no settlement is reached, the 30-day period specified in
paragraph (a) of this section for written response to the prepenalty
notice remains in effect unless additional time is granted by the
Office of Foreign Assets Control.
Sec. 539.704 Penalty imposition or withdrawal.
(a) No violation. If, after considering any response to a
prepenalty notice and any relevant facts, the Director of the Office of
Foreign Assets Control determines that there was no violation by the
respondent named in the prepenalty notice, the Director promptly
[[Page 8720]]
shall notify the respondent in writing of that determination and that
no monetary penalty will be imposed.
(b) Violation. If, after considering any response to a prepenalty
notice and any relevant facts, the Director of the Office of Foreign
Assets Control determines that there was a violation by the respondent
named in the prepenalty notice, the Director promptly shall issue a
written notice of the imposition of the monetary penalty to the
respondent.
(1) The penalty notice shall inform the respondent that payment of
the assessed penalty must be made within 30 days of the date of mailing
of the penalty notice.
(2) The penalty notice shall inform the respondent of the
requirement to furnish the respondent's taxpayer identification number
pursuant to 31 U.S.C. 7701 and that such number will be used for
purposes of collecting and reporting on any delinquent penalty amount.
Sec. 539.705 Administrative collection; referral to United States
Department of Justice.
In the event that the respondent does not pay the penalty imposed
pursuant to this part or make payment arrangements acceptable to the
Director of the Office of Foreign Assets Control within 30 days of the
date of mailing of the penalty notice, the matter may be referred for
administrative collection measures by the Department of the Treasury or
to the United States Department of Justice for appropriate action to
recover the penalty in a civil suit in a Federal district court.
Subpart H--Procedures
Sec. 539.801 Procedures.
For license application procedures and procedures relating to
amendments, modifications, or revocations of licenses; administrative
decisions; rulemaking; and requests for documents pursuant to the
Freedom of Information and Privacy Acts (5 U.S.C. 552 and 552a), see
part 501, subpart D, of this chapter.
Sec. 539.802 Delegation by the Secretary of the Treasury.
Any action that the Secretary of the Treasury is authorized to take
pursuant to Executive Order 12938 of November 14, 1994 (59 FR 59099, 3
CFR, 1994 Comp., p. 950), as amended by Executive Order 13094 of July
28, 1998 (63 FR 40803, July 30, 1998), and any further Executive orders
relating to the national emergency declared in Executive Order 12938
may be taken by the Director of the Office of Foreign Assets Control or
by any other person to whom the Secretary of the Treasury has delegated
authority so to act.
Subpart I--Paperwork Reduction Act
Sec. 539.901 Paperwork Reduction Act notice.
For approval by the Office of Management and Budget (``OMB'') under
the Paperwork Reduction Act of 1995 (44 U.S.C. 3507) of information
collections relating to recordkeeping and reporting requirements,
licensing procedures (including those pursuant to statements of
licensing policy), and other procedures, see Sec. 501.901 of this
chapter. An agency may not conduct or sponsor, and a person is not
required to respond to, a collection of information unless it displays
a valid control number assigned by OMB.
Appendix I to Part 539--Designated Foreign Persons
The following foreign persons have been determined by the Secretary
of State to have materially contributed or attempted to contribute
materially to the efforts of a foreign country, project, or entity of
proliferation concern to use, acquire, design, develop, produce, or
stockpile weapons of mass destruction or missiles capable of delivering
such weapons, for purposes of section 4(a) of Executive Order 12938, as
amended by section 1(a) of Executive Order 13094, and to be subject to
import measures authorized in Executive Orders 12938 and 13094. They,
and any entities owned or controlled by them, unless indicated
otherwise, are designated foreign persons for purposes of this part.
The applicable effective date and citation to the Federal Register for
each such person is given in brackets after that person's name and
identifying information:
1. Baltic State Technical University, including at 1/21, 1-ya
Krasnoarmeiskaya Ul., 198005 St. Petersburg, Russia [July 30, 1998;
63 FR 42089, August 6, 1998].
2. Europalace 2000, including at Moscow, Russia [July 30, 1998; 63
FR 42089, August 6, 1998].
3. Glavkosmos, including at 9 Krasnoproletarskaya St., 103030
Moscow, Russia [July 30, 1998; 63 FR 42089, August 6, 1998].
4. Grafit, also known as (``aka'') State Scientific Research
Institute of Graphite or NIIGRAFIT, including at 2 Ulitsa
Elektrodnaya, 111524 Moscow, Russia [July 30, 1998; 63 FR 42089,
August 6, 1998].
5. INOR Scientific Center, including at Moscow, Russia [July 30,
1998; 63 FR 42089, August 6, 1998].
6. MOSO Company, including at Moscow, Russia [July 30, 1998; 63 FR
42089, August 6, 1998].
7. Polyus Scientific Production Association, including at 3 Ulitsa
Vvedenskogo, 117342 Moscow, Russia [July 30, 1998; 63 FR 42089,
August 6, 1998].
8. D. Mendeleyev University of Chemical Technology of Russia,
including at 9 Miusskaya Sq., Moscow 125047, Russia [January 8,
1999; 64 FR 2935, January 19, 1999].
9. Moscow Aviation Institute (MAI), including at 4 Volokolamskoye
Shosse, Moscow 125871, Russia [January 8, 1999; 64 FR 2935, January
19, 1999].
10. The Scientific Research and Design Institute of Power
Technology, aka NIKIET, Research and Development Institute of Power
Engineering [RDIPE], and ENTEK, including at 101000, P.O. Box 788,
Moscow, Russia [January 8, 1999; 64 FR 2935, January 19, 1999].
Dated: February 1, 1999.
R. Richard Newcomb,
Director, Office of Foreign Assets Control.
Approved: February 9, 1999.
Elisabeth A. Bresee,
Assistant Secretary (Enforcement), Department of the Treasury.
[FR Doc. 99-4328 Filed 2-18-99; 11:37 am]
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