[Federal Register Volume 68, Number 176 (Thursday, September 11, 2003)]
[Rules and Regulations]
[Pages 53640-53661]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-22968]



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Part II





Department of the Treasury





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Office of Foreign Assets Control



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31 CFR Parts 500, 501, 505, et al.



Foreign Assets Control Regulations; Reporting and Procedures 
Regulations; Cuban Assets Control Regulations: Publication of Revised 
Civil Penalties Hearing Regulations; Interim Final Rule and Proposed 
Rule

  Federal Register / Vol. 68, No. 176 / Thursday, September 11, 2003 / 
Rules and Regulations  

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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Parts 500, 501, 505, 515, 535, 536, 537, 538, 539, 540, 545, 
550, 560, 575, 585, 586, 587, 588, 590, 591, 594, 595, 596, 597, 
and 598


Foreign Assets Control Regulations; Reporting and Procedures 
Regulations; Cuban Assets Control Regulations: Publication of Revised 
Civil Penalties Hearing Regulations

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Interim final rule with request for comments.

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SUMMARY: The Office of Foreign Assets Control (``OFAC'') of the U.S. 
Department of the Treasury (``Treasury'') is issuing this interim final 
rule to provide revisions to its civil penalties regulations 
promulgated pursuant to the Trading with the Enemy Act. These revisions 
consolidate substantive changes to the Foreign Assets Control 
Regulations, and the Cuban Assets Control Regulations, in a new subpart 
of the Reporting and Procedures Regulations, renamed Reporting, 
Procedures, and Penalties Regulations. Conforming changes are made to 
the other parts of the regulations.

DATES: This interim final rule is effective September 11, 2003. Written 
comments on this interim final rule may be submitted on or before 
October 14, 2003.

ADDRESSES: Comments may be submitted by mail, by facsimile, or through 
OFAC's Web site. Because paper mail in the Washington, DC area may be 
subject to delay, electronic mail submission is recommended.
    Mailing address: Chief of Records, ATTN Request for Comments, 
Office of Foreign Assets Control, Department of the Treasury, 1500 
Pennsylvania Avenue, NW., Washington, DC 20220.
    Facsimile number: (202) 622-1657. OFAC's Web site: <http://www.treas.gov/ofac.html. Comments must be in writing. OFAC 
will not accept comments accompanied by a request that all or part of 
the submission be treated confidentially because of its business 
proprietary nature or for any other reason. All comments received by 
the deadline will be a matter of public record and will be made 
available on OFAC's Web site.

FOR FURTHER INFORMATION CONTACT: Chief of Penalties, tel.: (202) 622-
6140, or Chief Counsel, tel.: (202) 622-2410.

SUPPLEMENTARY INFORMATION: 

Electronic Availability

    This document and additional information concerning OFAC are 
available from OFAC's Web site <http://www.treas.gov/ofac.html or via facsimile through a 24-hour fax-on-demand 
service, tel: (202) 622-0077. Comments on this interim final rule may 
be submitted electronically through OFAC's Web site http://www.treas.gov/ofac.html.

Analysis of the Interim Final Rule

Background

    OFAC hereby publishes as revisions to 31 CFR parts 500, 501, and 
515 its civil penalties regulations promulgated pursuant to the Trading 
with the Enemy Act. These revisions expand on and clarify existing 
civil penalties procedures. They are intended to promote the 
transparency of OFAC's procedures and to streamline the existing 
regulatory scheme. In order to effect a procedurally fair and 
expeditious resolution of civil penalties cases, OFAC intends that the 
revised rules for the conduct and review of agency hearings, contained 
at 31 CFR Sec. Sec.  501.710-501.761, shall be effective for all 
hearings regardless of whether the request for hearing was made before 
the effective date of these revisions.
    Currently, the only sanctions programs implemented pursuant to the 
Trading with the Enemy Act, and significantly affected by these 
changes, are the Foreign Assets Control Regulations (applicable to 
North Korea and Vietnam), the Cuban Assets Control Regulations 
(applicable to Cuba), and the Transaction Control Regulations, at 31 
CFR part 505 (applicable to certain offshore trade in strategic goods 
with the former Soviet Bloc). For ease of the reader, the relevant 
subparts of parts 500, 501, and 515 are being republished in their 
entirety. OFAC is also making non-substantive conforming amendments to 
each of the other parts of 31 CFR chapter V.

Narrative Overview

    The administrative process for enforcing TWEA sanctions programs 
proceeds as follows:
    (a) The Director of the Office of Foreign Assets Control will 
notify a suspected violator (hereinafter ``respondent'') of an alleged 
violation by issuing a ``Prepenalty Notice.'' The Prepenalty Notice 
shall describe the alleged violation(s) and include a proposed civil 
penalty amount.
    (b) The respondent will have 60 days from the date the Prepenalty 
Notice is served to make a written presentation either defending 
against the alleged violation or admitting the violation. A respondent 
who admits a violation may offer information 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. Information presented 
during this period may also be used in informal settlement 
negotiations.
    (c) Absent a settlement agreement or a finding that no violation 
occurred, the Director of the Office of Foreign Assets Control will 
issue a ``Penalty Notice.'' The respondent will have 30 days from the 
date of service to either pay the penalty or request a hearing.
    (d) If the respondent requests a hearing, the Director of the 
Office of Foreign Assets Control will have two options:
    (1) The Director may issue an ``Order Instituting Proceedings'' and 
refer the matter to an Administrative Law Judge for a hearing and 
decision; or
    (2) The Director may determine to discontinue the penalty action 
based on information presented by the respondent.
    (e) Absent review by a Secretary's designee, the decision of the 
Administrative Law Judge will become the final decision of the 
Department without further proceedings.
    (f) If review is taken by a Secretary's designee, the Secretary's 
designee reaches a final Department decision.

Procedural Requirements

    Because this interim final rule pertains to a foreign affairs 
function of the United States, it is not subject to Executive Order 
12866.
    Pursuant to 5 U.S.C. 553(a)(1), general notice of proposed rule 
making is not applicable to this interim final rule because it involves 
a foreign affairs function of the United States. Moreover, Treasury 
finds, in accordance with 5 U.S.C. 553(b)(A), that notice and public 
procedure is not required because this interim final rule involves 
agency procedure and practice. Moreover, this rule merely re-orders and 
clarifies the existing administrative process for civil penalty cases 
and will facilitate the provision of hearings for persons who have 
already requested them.
    Notwithstanding the above findings, however, in the interest of 
receiving full public comment, Treasury is also issuing a companion 
proposed rule with request for comment on all aspects of the interim 
final rule. Published elsewhere in a separate part of this issue of the 
Federal Register is a notice of

[[Page 53641]]

proposed rulemaking proposing to adopt the provisions of this interim 
final rule as a final rule.
    Because no notice of proposed rulemaking is required, the 
provisions of the Regulatory Flexibility Act (5 U.S.C. chapter 6) do 
not apply.
    The collections of information in the proposed rule arise during 
the conduct of administrative actions or investigations by OFAC against 
specific individuals or entities. Pursuant to 44 U.S.C. 
3518(c)(1)(B)(ii), these collections are not subject to the 
requirements of the Paperwork Reduction Act.

List of Subjects

31 CFR Part 500

    Administrative practice and procedure, Banks, banking, Cambodia, 
Currency, Foreign claims, Foreign investments in United States, Foreign 
trade, Korea, Democratic Peoples Republic of, Penalties, Reporting and 
recordkeeping requirements, Sanctions, Securities, Vietnam.

31 CFR Part 501

    Administrative practice and procedure, Penalties, Reporting and 
recordkeeping requirements, Sanctions.

31 CFR Part 505

    Administrative practice and procedure, Penalties, Foreign trade, 
Sanctions.

31 CFR Part 515

    Administrative practice and procedure, Banks, banking, Cuba, 
Currency, Foreign investments in United States, Foreign trade, 
Penalties, Reporting and recordkeeping requirements, Sanctions, 
Securities, Travel restrictions.

31 CFR Part 535

    Administrative practice and procedure, Iran, Sanctions.

31 CFR Part 536

    Administrative practice and procedure, Narcotics, Sanctions.

31 CFR Part 537

    Administrative practice and procedure, Burma, Sanctions.

31 CFR Part 538

    Administrative practice and procedure, Sanctions, Sudan.

31 CFR Part 539

    Administrative practice and procedure, Sanctions, Weapons of mass 
destruction.

31 CFR Part 540

    Administrative practice and procedure, Highly enriched uranium, 
Sanctions.

31 CFR Part 545

    Administrative practice and procedure, Afghanistan, Sanctions.

31 CFR Part 550

    Administrative practice and procedure, Libya, Sanctions.

31 CFR Part 560

    Administrative practice and procedure, Iran, Sanctions.

31 CFR Part 575

    Administrative practice and procedure, Iraq, Sanctions.

31 CFR Part 585

    Administrative practice and procedure, Sanctions, Federal Republic 
of Yugoslavia.

31 CFR Part 586

    Administrative practice and procedure, Sanctions, Federal Republic 
of Yugoslavia.

31 CFR Part 587

    Administrative practice and procedure, Sanctions, Federal Republic 
of Yugoslavia.

31 CFR Part 588

    Administrative practice and procedure, Sanctions, Western Balkans.

31 CFR Part 590

    Administrative practice and procedure, Angola, Sanctions.

31 CFR Part 591

    Administrative practice and procedure, Diamonds, Sanctions.

31 CFR Part 594

    Administrative practice and procedure, Sanctions, Global Terrorism.

31 CFR Part 595

    Administrative practice and procedure, Sanctions, Terrorism.

31 CFR Part 596

    Administrative practice and procedure, Sanctions, Terrorism.

31 CFR Part 597

    Administrative practice and procedure, Sanctions, Terrorism.

31 CFR Part 598

    Administrative practice and procedure, Narcotics, Sanctions.


0
For the reasons set forth in the preamble, 31 CFR parts 500, 501, 505, 
515, 535, 536, 537, 538, 539, 540, 545, 550, 560, 575, 585, 586, 587, 
588, 590, 591, 594, 595, 596, 597, and 598 are amended as follows:

PART 500--FOREIGN ASSETS CONTROL REGULATIONS

0
1. The authority for part 500 continues to read:

    Authority: 18 U.S.C. 2332d; 31 U.S.C. 321(b); 50 U.S.C. App. 1-
44; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); E.O. 9193, 
7 FR 5205, 3 CFR, 1938-1943 Comp., p. 1174; E.O. 9989, 13 FR 4891, 3 
CFR, 1943-1948 Comp., p. 748.

Subpart E--Licenses, Authorizations, and Statements of Licensing 
Policy

0
2. Section 500.501 is added to Subpart E to read as follows:


Sec.  500.501  General and specific licensing procedures.

    For provisions relating to licensing procedures, see part 501, 
subpart E, 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.

Subpart G--Penalties

0
3. Section 500.701 is revised to read as follows:


Sec.  500.701  Penalties.

    For provisions relating to penalties, see part 501, subpart D, of 
this chapter.


Sec. Sec.  500.702-500.718  [Removed]

0
4. Sections 500.702--500.718 are removed from subpart G.

Subpart H--Procedures


Sec.  500.801  [Amended]

0
5. Section 500.801 is amended by revising ``subpart D of part 501'' to 
read ``part 501, subpart E,''.

PART 501--REPORTING, PROCEDURES AND PENALTIES REGULATIONS

0
1. The heading of Part 501 is revised to read as set forth above.

0
2. The authority for part 501 is revised to read as follows:

    Authority: 18 U.S.C. 2332d; 21 U.S.C. 1901-1908; 22 U.S.C. 287c; 
22 U.S.C. 2370(a); 31 U.S.C. 321(b); 50 U.S.C. 1701-1706; 50 U.S.C. 
App. 1-44; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); 
E.O. 9193, 7 FR 5205, 3 CFR, 1938-1943 Comp., p. 1174; E.O. 9989, 13 
FR 4891, 3 CFR, 1943-1948 Comp., p. 748; E.O. 12854, 58 FR 36587, 3 
CFR, 1993 Comp., p. 614.


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0
3. Subpart E of Part 501 is redesignated as new Subpart F.
0
4. Subpart D of Part 501 is redesignated as new Subpart E.

0
5. A new Subpart D is added to Part 501 to read as follows:

Subpart D--Trading With the Enemy Act (TWEA) Penalties

Sec.
501.700 Applicability.
501.701 Penalties.
501.702 Definitions.
501.703 Overview of civil penalty process and construction of rules.
501.704 Appearance and practice.
501.705 Service and filing.
501.706 Prepenalty Notice; issuance by Director.
501.707 Response to Prepenalty Notice.
501.708 Director's finding of no penalty warranted.
501.709 Penalty Notice.
501.710 Settlement.
501.711 Hearing request.
501.712 Acknowledgment of hearing request.
501.713 Order Instituting Proceedings.
501.714 Answer to Order Instituting Proceedings.
501.715 Notice of hearing.
501.716 Default.
501.717 Consolidation of proceedings.
501.718 Conduct and order of hearings.
501.719 Ex parte communications.
501.720 Separation of functions.
501.721 Hearings to be public.
501.722 Prehearing conferences.
501.723 Prehearing disclosures; methods to discover additional 
matter.
501.724 Documents that may be withheld.
501.725 Confidential treatment of information in certain filings.
501.726 Motions.
501.727 Motion for summary disposition.
501.728 Subpoenas.
501.729 Sanctions.
501.730 Depositions upon oral examination.
501.731 Depositions upon written questions.
501.732 Evidence.
501.733 Evidence: confidential information; protective orders.
501.734 Introducing prior sworn statements of witnesses into the 
record.
501.735 Proposed findings, conclusions and supporting briefs.
501.736 Authority of Administrative Law Judge.
501.737 Adjustments of time, postponements and adjournments.
501.738 Disqualification and withdrawal of Administrative Law Judge.
501.739 Record in proceedings before Administrative Law Judge; 
retention of documents; copies.
501.740 Decision of Administrative Law Judge.
501.741 Review of decision or ruling.
501.742 Secretary's designee's consideration of decisions by 
Administrative Law Judge.
501.743 Briefs filed with the Secretary's designee.
501.744 Record before the Secretary's designee.
501.745 Orders and decisions: signature, date and public 
availability.
501.746 Referral to United States Department of Justice; 
administrative collection measures.
501.747 Procedures on remand of decisions.


Sec.  501.700  Applicability.

    This subpart is applicable only to those parts of chapter V 
promulgated pursuant to the TWEA, which include parts 500, 505, and 
515.


Sec.  501.701  Penalties.

    (a) Attention is directed to section 16 of the TWEA, as adjusted 
pursuant to the Federal Civil Penalties Inflation Adjustment Act of 
1990 (Pub. L. 101-410, as amended, 28 U.S.C. 2461 note), which provides 
that:
    (1) Persons who willfully violate any provision of TWEA or any 
license, rule, or regulation issued thereunder, and persons who 
willfully violate, neglect, or refuse to comply with any order of the 
President issued in compliance with the provisions of TWEA shall, upon 
conviction, be fined not more than $1,000,000 or, if an individual, be 
fined not more than $100,000 or imprisoned for not more than 10 years, 
or both; and an officer, director, or agent of any corporation who 
knowingly participates in such violation shall, upon conviction, be 
fined not more than $100,000 or imprisoned for not more than 10 years, 
or both.
    (2) Any property, funds, securities, papers, or other articles or 
documents, or any vessel, together with its tackle, apparel, furniture, 
and equipment, concerned in a violation of TWEA may upon conviction be 
forfeited to the United States Government.
    (3) The Secretary of the Treasury may impose a civil penalty of not 
more than $55,000 per violation on any person who violates any license, 
order, or regulation issued under TWEA. Note: The current $55,000 civil 
penalty cap may be adjusted for inflation pursuant to the Federal Civil 
Penalties Inflation Adjustment Act of 1990.
    (4) Any property, funds, securities, papers, or other articles or 
documents, or any vessel, together with its tackle, apparel, furniture, 
and equipment, that is the subject of a violation subject to a civil 
penalty issued pursuant to TWEA shall, at the discretion of the 
Secretary of the Treasury, be forfeited to the United States 
Government.
    (b) The criminal penalties provided in TWEA are subject to increase 
pursuant to 18 U.S.C. 3571 which, when read in conjunction with section 
16 of TWEA, provides that persons convicted of violating TWEA may be 
fined up to the greater of either $250,000 for individuals and 
$1,000,000 for organizations or twice the pecuniary gain or loss from 
the violation.
    (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 
representations, 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 5 years, or both.


Sec.  501.702  Definitions.

    (a) Chief Counsel means the Chief Counsel (Foreign Assets Control), 
Office of the General Counsel, Department of the Treasury.
    (b) Day means calendar day. In computing any period of time 
prescribed in or allowed by this subpart, the day of the act, event, or 
default from which the designated period of time begins to run shall 
not be included. The last day of the period so computed shall be 
included unless it is a Saturday, Sunday, or Federal legal holiday, in 
which event the period runs until the end of the next day that is not a 
Saturday, Sunday, or Federal legal holiday. Intermediate Saturdays, 
Sundays, and Federal legal holidays shall be excluded from the 
computation when the period of time prescribed or allowed is seven days 
or less, not including any additional time allowed for service by mail. 
If on the day a filing is to be made, weather or other conditions have 
caused the designated filing location to close, the filing deadline 
shall be extended to the end of the next day that the filing location 
is not closed and that is not a Saturday, a Sunday, or a Federal legal 
holiday. If service is made by mail, three days shall be added to the 
prescribed period for response.
    (c) Department means the Department of the Treasury.
    (d) Director means the Director of the Office of Foreign Assets 
Control, Department of the Treasury.
    (e) Ex Parte Communication means any material oral or written 
communication not on the public record concerning the merits of a 
proceeding with respect to which reasonable prior notice to all parties 
is not given, on any material matter or proceeding covered by these 
rules, that takes place between: A party to the proceeding, a party's 
counsel, or any other interested

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individual; and the Administrative Law Judge or Secretary's designee 
handling that proceeding. A request to learn the status of a proceeding 
does not constitute an ex parte communication; and settlement inquiries 
and discussions do not constitute ex parte communications.
    (f) General Counsel means the General Counsel of the U.S. 
Department of the Treasury.
    (g) Order of Settlement means a written order issued by the 
Director terminating a civil penalty action. An Order of Settlement 
does not constitute an agency decision that any violation took place.
    (h) Order Instituting Proceedings means a written order issued by 
the Director to initiate a civil penalty hearing.
    (i) Prepenalty Notice means a written notification from the 
Director informing a respondent of the alleged violation(s) and the 
respondent's right to respond.
    (j) Penalty Notice means a written notification from the Director 
informing a respondent that the Director has made a finding of 
violation and, absent a request for a hearing, will impose a civil 
monetary penalty.
    (k) Proceeding means any agency process initiated by an ``Order 
Instituting Proceedings,'' or by the filing of a petition for review of 
an Administrative Law Judge's decision or ruling.
    (l) Respondent means any individual alleged by the Director to have 
violated a TWEA-based sanctions regulation.
    (m) Secretary's designee means a U.S. Treasury Department official 
delegated responsibility by the Secretary of the Treasury to consider 
petitions for review of Administrative Law Judge decisions made in 
civil penalty hearings conducted pursuant to this subpart.
    (n) Secretary means the Secretary of the Treasury.


Sec.  501.703  Overview of civil penalty process and construction of 
rules.

    (a) The administrative process for enforcing TWEA sanctions 
programs proceeds as follows:
    (1) The Director of the Office of Foreign Assets Control will 
notify a suspected violator (hereinafter ``respondent'') of an alleged 
violation by issuing a ``Prepenalty Notice.'' The Prepenalty Notice 
shall describe the alleged violation(s) and include a proposed civil 
penalty amount.
    (2) The respondent will have 60 days from the date the Prepenalty 
Notice is served to make a written presentation either defending 
against the alleged violation or admitting the violation. A respondent 
who admits a violation may offer information 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.
    (3) Absent a settlement agreement or a finding that no violation 
occurred, the Director of the Office of Foreign Assets Control will 
issue a ``Penalty Notice.'' The respondent will have 30 days from the 
date of service to either pay the penalty or request a hearing.
    (4) If the respondent requests a hearing, the Director of the 
Office of Foreign Assets Control will have two options:
    (i) The Director may issue an ``Order Instituting Proceedings'' and 
refer the matter to an Administrative Law Judge for a hearing and 
decision; or
    (ii) The Director may determine to discontinue the penalty action 
based on information presented by the respondent.
    (5) Absent review by a Secretary's designee, the decision of the 
Administrative Law Judge will become the final decision of the 
Department without further proceedings.
    (6) If review is taken by a Secretary's designee, the Secretary's 
designee reaches the final decision of the Department.
    (7) A respondent may seek judicial review of the final decision of 
the Department.
    (b) Construction of rules. The rules contained in this subpart 
shall be construed and administered to promote the just, speedy, and 
inexpensive determination of every action. To the extent there is a 
conflict between the rules contained in this subpart and a procedural 
requirement contained in any statute, the requirement in the statute 
shall control.


Sec.  501.704.  Appearance and practice.

    No person shall be represented before the Director in any civil 
penalty matter, or an Administrative Law Judge or the Secretary's 
designee in a civil penalty hearing, under this subpart except as 
provided in this section.
    (a) Representing oneself. In any proceeding, an individual may 
appear on his or her own behalf.
    (b) Representative. Upon written notice to the Director,
    (1) A respondent may be represented by a personal representative. 
If a respondent wishes to be represented by counsel, such counsel must 
be an attorney at law admitted to practice before the Supreme Court of 
the United States, the highest court of any State, commonwealth, 
possession, or territory of the United States, or the District of 
Columbia;
    (2) a duly authorized member of a partnership may represent the 
partnership; and
    (3) a bona fide officer, director, or employee of a corporation, 
trust or association may represent the corporation, trust or 
association.
    (c) Director representation. The Director shall be represented by 
members of the Office of Chief Counsel or any other counsel 
specifically assigned by the General Counsel.
    (d) Conflicts of interest--(1) Conflict of interest in 
representation. No individual shall appear as representative for a 
respondent in a proceeding conducted pursuant to this subpart if it 
reasonably appears that such representation may be materially limited 
by that representative's responsibilities to a third person, or by that 
representative's own interests.
    (2) Corrective measures. An Administrative Law Judge may take 
corrective measures at any stage of a proceeding to cure a conflict of 
interest in representation, including the issuance of an order limiting 
the scope of representation or disqualifying an individual from 
appearing in a representative capacity for the duration of the 
proceeding.


Sec.  501.705  Service and filing.

    (a) Service of Prepenalty Notice, Penalty Notice, Acknowledgment of 
Hearing Request and Order Instituting Proceedings. The Director shall 
cause any Prepenalty Notice, Penalty Notice, Acknowledgment of Hearing 
Request, Order Instituting Proceedings, and other related orders and 
decisions, or any amendments or supplements thereto, to be served upon 
the respondent.
    (1) Service on individuals. Service shall be complete:
    (i) Upon the date of mailing by first class (regular) mail to the 
respondent at the respondent's last known address, or to a 
representative authorized to receive service, including qualified 
representatives noticed to the Director pursuant to Sec.  501.704. 
Absent satisfactory evidence in the administrative record to the 
contrary, the Director may presume that the date of mailing is the date 
stamped on the first page of the notice or order. The respondent may 
rebut the presumption that a notice or order was mailed on the stamped 
mailing date only by presenting evidence of the postmark date on the 
envelope in which the notice or order was mailed;
    (ii) Upon personal service on the respondent; or leaving a copy at 
the respondent's place of business with a clerk or other person in 
charge thereof; or leaving a copy at the respondent's

[[Page 53644]]

dwelling house or usual place of abode with a person at least 18 years 
of age then residing therein; or with any other representative 
authorized by appointment or by law to accept or receive service for 
the respondent, including representatives noticed to the Director 
pursuant to Sec.  501.704; and evidenced by a certificate of service 
signed and dated by the individual making such service, stating the 
method of service and the identity of the individual with whom the 
notice or order was left; or
    (iii) Upon proof of service on a respondent who is not resident in 
the United States by any method of service permitted by the law of the 
jurisdiction in which the respondent resides or is located, provided 
the requirements of such foreign law satisfy due process requirements 
under United States law with respect to notice of administrative 
proceedings, and where applicable laws or intergovernmental agreements 
or understandings make the methods of service set forth in paragraphs 
(a)(1)(i) and (ii) of this section inappropriate or ineffective for 
service upon the nonresident respondent.
    (2) Service on corporations and other entities. Service is complete 
upon delivering a copy of the notice or order to a partner, bona fide 
officer, director, managing or general agent, or any other agent 
authorized by appointment or by law to receive such notice, by any 
method specified in paragraph (a)(1) of this section.
    (b) Service of responses to Prepenalty Notice, Penalty Notice, and 
requests for a hearing. A respondent shall serve a response to a 
Prepenalty Notice and any request for a hearing on the Director through 
the Chief of Civil Penalties, Office of Foreign Assets Control, U.S. 
Treasury Department, 1500 Pennsylvania Avenue, NW., Washington DC 
20220, with the envelope prominently marked ``Urgent: Part 501 
Action.'' Service shall be complete upon the date of mailing, as 
evidenced by the post-mark date on the envelope, by first class 
(regular) mail.
    (c) Service or filing of papers in connection with any hearing by 
an Administrative Law Judge or review by the Secretary's designee. (1) 
Service on the Director and/or each respondent. (i) Each paper, 
including each notice of appearance, written motion, brief, petition 
for review, statement in opposition to petition for review, or other 
written communication, shall be served upon the Director and/or each 
respondent in the proceeding in accordance with paragraph (a) of this 
section; provided, however, that no service shall be required in the 
case of documents that are the subject of a motion seeking a protective 
order to limit or prevent disclosure to another party.
    (ii) Service upon the Director shall be made through the Chief 
Counsel (Foreign Assets Control), U.S. Treasury Department, 1500 
Pennsylvania Avenue, NW., Washington, DC 20220, with the envelope 
prominently marked ``Urgent: Part 501 Proceeding.''
    (iii) Service may be made:
    (A) As provided in paragraph (a) of this section;
    (B) By mailing the papers through the U.S. Postal Service by 
Express Mail; or
    (C) By transmitting the papers by facsimile machine where the 
following conditions are met:
    (1) The persons serving each other by facsimile transmission have 
agreed to do so in a writing, signed by each party, which specifies 
such terms as they deem necessary with respect to facsimile machine 
telephone numbers to be used, hours of facsimile machine operation, the 
provision of non-facsimile original or copy, and any other such 
matters; and
    (2) Receipt of each document served by facsimile is confirmed by a 
manually signed receipt delivered by facsimile machine or other means 
agreed to by the parties.
    (iv) Service by U.S. Postal Service Express Mail is complete upon 
delivery as evidenced by the sender's receipt. Service by facsimile is 
complete upon confirmation of transmission by delivery of a manually 
signed receipt.
    (2) Filing with the Administrative Law Judge. Unless otherwise 
provided, all briefs, motions, objections, applications or other 
filings made during a proceeding before an Administrative Law Judge, 
and all requests for review by the Secretary's designee, shall be filed 
with the Administrative Law Judge.
    (3) Filing with the Secretary's designee. And all briefs, motions, 
objections, applications or other filings made during a proceeding 
before the Secretary's designee shall be filed with the Secretary's 
designee.
    (4) Certificate of service. Papers filed with an Administrative Law 
Judge or Secretary's designee shall be accompanied by a certificate 
stating the name of each person served, the date of service, the method 
of service and the mailing address or facsimile telephone number to 
which service was made, if not made in person. If the method of service 
to any person is different from the method of service to any other 
person, the certificate shall state why a different means of service 
was used.
    (5) Form of briefs. All briefs containing more than 10 pages shall, 
to the extent applicable, include a table of contents, an alphabetized 
table of cases, a table of statutes, and a table of other authorities 
cited, with references to the pages of the brief wherein they are 
cited.
    (6) Specifications. All original documents shall be filed with the 
Administrative Law Judge or Secretary's designee, as appropriate. 
Papers filed in connection with any proceeding shall:
    (i) Be on one grade of unglazed white paper measuring 8.5 x 11 
inches, except that, to the extent that the reduction of larger 
documents would render them illegible, such documents may be filed on 
larger paper;
    (ii) Be typewritten or printed in either 10- or 12-point typeface 
or otherwise reproduced by a process that produces permanent and 
plainly legible copies;
    (iii) Include at the head of the paper, or on a title page, the 
title of the proceeding, the name(s) of each respondent, the subject of 
the particular paper or pleading, and the file number assigned to the 
proceeding;
    (iv) Be formatted with all margins at least 1 inch wide;
    (v) Be double-spaced, with single-spaced footnotes and single-
spaced indented quotations; and
    (vi) Be stapled, clipped or otherwise fastened in the upper left 
corner.
    (7) Signature requirement and effect. All papers must be dated and 
signed by a member of the Office of Chief Counsel, or other counsel 
assigned by the General Counsel to represent the Director, or a 
respondent or respondent's representative, as appropriate. If a filing 
is signed by a respondent's representative it shall state that 
representative's mailing address and telephone number. A respondent who 
represents himself or herself shall sign his or her individual name and 
state his or her address and telephone number on every filing. A 
witness deposition shall be signed by the witness.
    (i) Effect of signature. The signature shall constitute a 
certification that:
    (A) The person signing the filing has read the filing;
    (B) To the best of his or her knowledge, information, and belief, 
formed after reasonable inquiry, the filing is well grounded in fact 
and is warranted by existing law or a good faith argument for the 
extension, modification, or reversal of existing law; and
    (C) The filing is not made for any improper purpose, such as to 
harass or to cause unnecessary delay or needless increase in the cost 
of adjudication.
    (ii) If a filing is not signed, the Administrative Law Judge (or 
the

[[Page 53645]]

Secretary's designee) shall strike the filing, unless it is signed 
promptly after the omission is called to the attention of the person 
making the filing.
    (d) Service of written orders or decisions issued by the 
Administrative Law Judge or Secretary's designee. Written orders or 
decisions issued by the Administrative Law Judge or the Secretary's 
designee shall be served promptly on each respondent and the Director 
pursuant to any method of service authorized under paragraph (a) of 
this section. Service of such orders or decisions shall be made by the 
Administrative Law Judge or the Secretary's designee, as appropriate.


Sec.  501.706  Prepenalty Notice; issuance by Director.

    (a) When required. If the Director has reason to believe there has 
occurred a violation of any provision of parts 500 or 515 of this 
chapter 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 pursuant to parts 500 
or 515 of this chapter or otherwise under the Trading With the Enemy 
Act, and the Director determines that further civil proceedings are 
warranted, the Director shall issue a Prepenalty Notice. The Prepenalty 
Notice may be issued whether or not another agency has taken any action 
with respect to the matter.
    (b) Contents of notice.
    (1) Facts of violation. The Prepenalty Notice shall describe the 
alleged violation, specify the laws and regulations allegedly violated, 
and state the amount of the proposed monetary penalty.
    (2) Right to respond. The Prepenalty Notice shall inform the 
respondent of respondent's right to make a written presentation within 
the time prescribed in Sec.  501.707 as to why the respondent believes 
there should be no finding of a violation or why, if the respondent 
admits the violation, a monetary penalty should not be imposed or why, 
if imposed, the monetary penalty should be in a lesser amount than 
proposed. The Prepenalty Notice shall also inform the respondent that:
    (i) The act of submitting a written response by the respondent is a 
factor that may result in a lower penalty absent any aggravating 
factors; and
    (ii) If the respondent fails to respond to the Prepenalty Notice 
within the applicable 60-day period set forth in Sec.  501.707, the 
Director may proceed with the issuance of a Penalty Notice.
    (3) Right to request a hearing. The Prepenalty Notice shall inform 
the respondent of respondent's right, if a subsequent Penalty Notice is 
issued, to request an administrative hearing. The Director will not 
consider any request for an administrative hearing until a Penalty 
Notice has been issued.


Sec.  501.707  Response to Prepenalty Notice.

    (a) Deadline for response.
    (1) The respondent shall have 60 days after the date of service of 
the Prepenalty Notice pursuant to Sec.  501.705(a) to respond thereto. 
The response, signed and dated, shall be served as provided in Sec.  
501.705(b).
    (2) In response to a written request by the respondent, the 
Director may, at his or her discretion for the purpose of conducting 
settlement negotiations or for other valid reasons, grant additional 
time for a respondent to submit a response to the Prepenalty Notice.
    (3) The failure to submit a response within the time period set 
forth in this paragraph (a), including any additional time granted by 
the Director, shall be deemed to be a waiver of the right to respond to 
the Prepenalty Notice.
    (b) Form and contents of response.
    (1) In general. The response need not be in any particular form, 
but must be typewritten and contain the heading ``Response to 
Prepenalty Notice'' and the Office of Foreign Assets Control 
identification number shown near the top of the Prepenalty Notice. It 
should be responsive to the allegations contained therein and set forth 
the nature of the respondent's admission of the violation, or defenses 
and claims for mitigation, if any.
    (i) The response must admit or deny specifically each separate 
allegation of violation made in the Prepenalty Notice. If the 
respondent is without knowledge as to an allegation, the response shall 
so state, and such statement shall constitute a denial. Any allegation 
not specifically addressed in the response shall be deemed admitted.
    (ii) The response must set forth any additional or new matter or 
arguments the respondent seeks, or shall seek, to use in support of all 
defenses or claims for mitigation. Any defense the respondent wishes to 
assert must be included in the response.
    (iii) The response must accurately state (for each respondent, if 
applicable) the respondent's full name and address for future service, 
together with a current telephone and, if applicable, facsimile machine 
number. If respondent is represented, the representative's full name 
and address, together with telephone and facsimile numbers, may be 
provided instead of service information for the respondent. The 
respondent or respondent's representative of record is responsible for 
providing timely written notice to the Director of any subsequent 
changes in the information provided.
    (iv) Financial disclosure statement requirement. Any respondent who 
asserts financial hardship or an inability to pay a penalty shall 
include with the response a financial disclosure statement setting 
forth in detail the basis for asserting the financial hardship or 
inability to pay a penalty, subject to 18 U.S.C. 1001.
    (2) Settlement. In addition, or as an alternative, to a written 
response to a Prepenalty Notice, the respondent or respondent's 
representative may seek settlement of the alleged violation(s). See 
Sec.  501.710. In the event of settlement prior to the issuance of a 
Penalty Notice, the claim proposed in the Prepenalty Notice will be 
withdrawn and the respondent will not be required to make a written 
response to the Prepenalty Notice. In the event no settlement is 
reached, a written response to the Prepenalty Notice is required 
pursuant to paragraph (c) of this section.


Sec.  501.708  Director's finding of no penalty warranted.

    If after considering any written response to the Prepenalty Notice 
submitted pursuant to Sec.  501.707 and any other relevant facts, the 
Director determines that there was no violation or that the violation 
does not warrant the imposition of a civil monetary penalty, the 
Director promptly shall notify the respondent in writing of that 
determination and that no civil monetary penalty pursuant to this 
subpart will be imposed.


Sec.  501.709  Penalty notice.

    (a) If, after considering any written response to the Prepenalty 
Notice, and any other relevant facts, the Director determines that 
there was a violation by the respondent and that a monetary penalty is 
warranted, the Director promptly shall issue a Penalty Notice informing 
the respondent that, absent a timely request for an administrative 
hearing, the Director will impose the civil monetary penalty described 
in the Penalty Notice. The Penalty Notice shall inform the respondent:
    (1) Of the respondent's right to submit a written request for an 
administrative hearing not later than 30 days after the date of service 
of the Penalty Notice;
    (2) That in the absence of a timely request for a hearing, the 
issuance of the Penalty Notice constitutes final agency action;
    (3) That, absent a timely request for a hearing, payment (or 
arrangement with the Financial Management Service of the Department for 
installment

[[Page 53646]]

payment) of the assessed penalty must be made not later than 30 days 
after the date of service of the Penalty Notice; and
    (4) That absent a timely request for a hearing, the respondent must 
furnish respondent's taxpayer identification number pursuant to 31 
U.S.C. 7701 and that the Director intends to use such information for 
the purposes of collecting and reporting on any delinquent penalty 
amount in the event of a failure to pay the penalty imposed.


Sec.  501.710  Settlement.

    (a) Availability. Either the Director or any respondent may, at any 
time during the administrative civil penalty process described in this 
subpart, propose an offer of settlement. The amount accepted in 
settlement may be less than the civil penalty that might be imposed in 
the event of a formal determination of violation. Upon mutual agreement 
by the Director and a respondent on the terms of a settlement, the 
Director shall issue an Order of Settlement.
    (b) Procedure.
    (1) Prior to issuance of Penalty Notice. Any offer of settlement 
made by a respondent prior to the issuance of a Penalty Notice shall be 
submitted, in writing, to the Chief of Civil Penalties, Office of 
Foreign Assets Control, U.S. Department of the Treasury, 1500 
Pennsylvania Avenue, NW., Washington, DC 20220.
    (2) After issuance of Penalty Notice. Any offer of settlement made 
by a respondent after issuance of a Penalty Notice shall state that it 
is made pursuant to this section; shall recite or incorporate as a part 
of the offer the provisions of paragraphs (b)(5)(ii) and (b)(6) of this 
section; shall be signed by the respondent making the offer, and not 
only by his or her representative; and shall be submitted to the Chief 
Counsel.
    (3) Extensions of time. The submission of any settlement offer does 
not provide a basis for adjourning or otherwise delaying all or any 
portion of the administrative civil penalty process.
    (i) Prior to issuance of Order Instituting Proceedings. Any 
respondent (or potential respondent in the case of a pending Prepenalty 
Notice) may request, in writing, that the Director withhold issuance of 
any such notice, or grant an extension of time to respond to a any such 
Notice, for a period not to exceed 60 days for the exclusive purpose of 
effecting settlement. The Director may grant any such request, in 
writing, under terms and conditions within his or her discretion.
    (ii) After issuance of Order Instituting Proceedings. Upon mutual 
agreement of the Director and a respondent, the Administrative Law 
Judge may grant an extension of time, for a period not to exceed 60 
days, for the exclusive purpose of effecting settlement.
    (4) Views of Administrative Law Judge. Where an Administrative Law 
Judge is assigned to a proceeding, the Director or the respondent may 
request that the Administrative Law Judge express his or her views 
regarding the appropriateness of the offer of settlement. A request for 
the Administrative Law Judge to express his or her views on an offer of 
settlement or otherwise to participate in a settlement conference 
constitutes a waiver by the party making the request of any right to 
claim bias or prejudgment by the Administrative Law Judge based on the 
views expressed.
    (5) Waivers.
    (i) By submitting an offer of settlement, a respondent making the 
offer waives, subject to acceptance of the offer:
    (A) All hearings pursuant to section 16 of the Trading with the 
Enemy Act (50 U.S.C. App. 16);
    (B) The filing of proposed findings of fact and conclusions of law;
    (C) Proceedings before, and a decision by, an Administrative Law 
Judge;
    (D) All post-hearing procedures; and
    (E) Judicial review by any court.
    (ii) By submitting an offer of settlement the respondent further 
waives:
    (A) Such provisions of this subpart or other requirements of law as 
may be construed to prevent any member of the Director's staff, or 
members of the Office of Chief Counsel or other counsel assigned by the 
General Counsel, from participating in or advising the Director as to 
any order, opinion, finding of fact, or conclusion of law to be entered 
pursuant to the offer; and
    (B) Any right to claim bias or prejudgment by the Director based on 
the consideration of or discussions concerning settlement of all or any 
part of the proceeding.
    (6) If the Director rejects the offer of settlement, the respondent 
shall be so notified in writing and the offer of settlement shall be 
deemed withdrawn. The rejected offer shall not constitute a part of the 
record in any proceeding against the respondent making the offer, 
provided, however, that rejection of an offer of settlement does not 
affect the continued validity of waivers pursuant to paragraph (b)(5) 
of this section with respect to any discussions concerning the rejected 
offer of settlement.
    (7) No settlement offer or proposal, or any subsequent negotiation 
or resolution, is admissible as evidence in any administrative 
proceeding initiated by the Director.


Sec.  501.711  Hearing request.

    (a) Deadline for request. A request for an agency hearing shall be 
served on the Director not later than 30 days after the date of service 
of the Penalty Notice. See Sec.  501.705(b). A respondent may not 
reserve the right to request a hearing after expiration of the 30 
calendar day period. A request for a hearing that is not made as 
required by this paragraph shall constitute a waiver of the 
respondent's right to a hearing.
    (b) Form and contents of request. The request need not be in any 
particular form, but must be typewritten and contain the heading 
``Request for Agency Hearing''. The request must include the Office of 
Foreign Assets Control identification number shown near the top of the 
Penalty Notice. It should be responsive to the determination contained 
in the Penalty Notice and set forth the nature of the respondent's 
defenses or claims for mitigation, if any.
    (1) The request must admit or deny specifically each separate 
determination of violation made in the Penalty Notice. If the 
respondent is without knowledge as to a determination, the request 
shall so state, and such statement shall constitute a denial. Any 
determination not specifically addressed in the response shall be 
deemed admitted.
    (2) The request must set forth any additional or new matter or 
arguments the respondent seeks, or shall seek, to use in support of all 
defenses or claims for mitigation. Any defense the respondent wishes to 
assert must be included in the request.
    (3) The request must accurately state, for each respondent (if 
applicable), the respondent's full name and address for future service, 
together with current telephone and, if applicable, a facsimile machine 
number. If respondent is represented, the representative's full name 
and address, together with telephone and facsimile numbers, may be 
provided in lieu of service information for the respondent. The 
respondent or respondent's representative is responsible for providing 
timely written notice to the Director of any subsequent changes in the 
information provided.
    (c) Signature requirement. The respondent or, if represented, the 
respondent's representative, must sign the hearing request.


Sec.  501.712  Acknowledgment of hearing request.

    No later than 60 days after service of any hearing request, the 
Director shall

[[Page 53647]]

acknowledge receipt and inform a respondent, in writing, whether an 
Order Instituting Proceedings shall be issued.


Sec.  501.713  Order Instituting Proceedings.

    If a respondent makes a timely request for a hearing, the Director 
shall determine, at his or her option, whether to dismiss the 
violation(s) set forth in the Penalty Notice or to issue an Order 
Instituting Proceedings to initiate the hearing process. The Order 
shall be served on the respondent(s) as provided in Sec.  
501.705(c)(1). The Director may, in his or her discretion, withdraw an 
Order Instituting Proceedings at any time prior to the issuance of a 
decision by the Administrative Law Judge.
    (a) Content of Order. The Order Instituting Proceedings shall:
    (1) Be prepared by the Office of the Chief Counsel or other counsel 
assigned by the General Counsel and based on information provided by 
the Director;
    (2) State the legal authority under which the hearing is to be 
held;
    (3) Contain a short and plain statement of the alleged violation(s) 
to be considered and determined (including the matters of fact and law 
asserted) in such detail as will permit a specific response thereto;
    (4) State the amount of the penalty sought in the proceeding; and
    (5) Be signed by the Director.
    (b) Combining penalty actions. The Director may combine claims 
contained in two or more Penalty Notices involving the same respondent, 
and for which hearings have been requested, into a single Order 
Instituting Proceedings.
    (c) Amendment to Order Instituting Proceedings. Upon motion by the 
Director, the Administrative Law Judge may, at any time prior to 
issuance of a decision, permit the Director to amend an Order 
Instituting Proceedings to include new matters of fact or law that are 
within the scope of the original Order Instituting Proceedings.


Sec.  501.714  Answer to Order Instituting Proceedings.

    (a) When required. Not later than 45 days after service of the 
Order Instituting Proceedings, the respondent shall file, with the 
Administrative Law Judge and the Office of Chief Counsel, an answer to 
each of the allegations contained therein. If the Order Instituting 
Proceedings is amended, the Administrative Law Judge may require that 
an amended answer be filed and, if such an answer is required, shall 
specify a date for the filing thereof.
    (b) Contents; effect of failure to deny. Unless otherwise directed 
by the Administrative Law Judge, an answer shall specifically admit, 
deny, or state that the respondent does not have, and is unable to 
obtain, sufficient information to admit or deny each allegation in the 
Order Instituting Proceedings. When a respondent intends to deny only a 
part of an allegation, the respondent shall specify so much of it as is 
true and shall deny only the remainder. A statement of lack of 
information shall have the effect of a denial. A defense of res 
judicata, statute of limitations or any other matter constituting an 
affirmative defense shall be asserted in the answer. Any allegation not 
specifically addressed in the answer shall be deemed admitted.
    (c) Motion for more definite statement. A respondent may file with 
an answer a motion for a more definite statement of specified matters 
of fact or law to be considered or determined. Such motion shall state 
the respects in which, and the reasons why, each such matter of fact or 
law should be required to be made more definite. If the motion is 
granted, the order granting such motion shall set the periods for 
filing such a statement and any answer thereto.
    (d) Amendments. A respondent may amend its answer at any time by 
written consent of the Director or with permission of the 
Administrative Law Judge. Permission shall be freely granted when 
justice so requires.
    (e) Failure to file answer: default. If a respondent fails to file 
an answer required by this subpart within the time prescribed, such 
respondent may be deemed in default pursuant to Sec.  501.716(a). A 
party may make a motion to set aside a default pursuant to Sec.  
501.726(e).


Sec.  501.715  Notice of Hearing.

    (a) If the Director issues an Order Instituting Proceedings, the 
respondent shall receive not less than 45 days notice of the time and 
place of the hearing.
    (b) Time and place of hearing. All hearings shall be held in the 
Washington, DC metropolitan area unless, based on extraordinary 
reasons, otherwise mutually agreed by the respondent and the Director. 
The time for any hearing shall be fixed with due regard for the public 
interest and the convenience and necessity of the parties or their 
representatives. Requests to change the time of a hearing may be 
submitted to the Administrative Law Judge, who may modify the hearing 
date(s) and/or time(s) and place. All requests for a change in the date 
and time and/or place of a hearing must be received by the 
Administrative Law Judge and served upon the parties no later than 15 
days before the scheduled hearing date.
    (c) Failure to appear at hearings: default. Any respondent named in 
an order instituting proceedings as a person against whom findings may 
be made or penalties imposed who fails to appear (in person or through 
a representative) at a hearing of which he or she has been duly 
notified may be deemed to be in default pursuant to Sec.  501.716(a). 
Without further proceedings or notice to the respondent, the 
Administrative Law Judge may enter a finding that the right to a 
hearing was waived, and the Penalty Notice shall constitute final 
agency action as provided in Sec.  501.709(a)(2). A respondent may make 
a motion to set aside a default pursuant to Sec.  501.726(e).


Sec.  501.716  Default.

    (a) A party to a proceeding may be deemed to be in default and the 
Administrative Law Judge (or the Secretary's designee during review 
proceedings) may determine the proceeding against that party upon 
consideration of the record if that party fails:
    (1) To appear, in person or through a representative, at any 
hearing or conference of which the party has been notified;
    (2) To answer, to respond to a dispositive motion within the time 
provided, or otherwise to prosecute or defend the proceeding; or
    (3) To cure a deficient filing within the time specified by the 
Administrative Law Judge (or the Secretary's designee) pursuant to 
Sec.  501.729(b).
    (b) In deciding whether to determine the proceedings against a 
party deemed to be in default, the Administrative Law Judge shall 
consider the record of the proceedings (including the Order Instituting 
Proceedings) and shall construe contested matters of fact and law 
against the party deemed to be in default.
    (c) For information and procedures pertaining to a motion to set 
aside a default, see Sec.  501.726(e).


Sec.  501.717  Consolidation of proceedings.

    By order of the Administrative Law Judge, proceedings involving 
common questions of law and fact may be consolidated for hearing of any 
or all the matters at issue in such proceedings. The Administrative Law 
Judge may make such orders concerning the conduct of such proceedings 
as he or she deems appropriate to avoid unnecessary cost or delay. 
Consolidation shall not prejudice any rights under this subpart and 
shall not

[[Page 53648]]

affect the right of any party to raise issues that could have been 
raised if consolidation had not occurred.


Sec.  501.718  Conduct and order of hearings.

    All hearings shall be conducted in a fair, impartial, expeditious 
and orderly manner. Each party has the right to present its case or 
defense by oral and documentary evidence and to conduct such cross 
examination as may be required for full disclosure of the relevant 
facts. The Director shall present his or her case-in-chief first. The 
Director shall be the first party to present an opening statement and a 
closing statement and may make a rebuttal statement after the 
respondent's closing statement.


Sec.  501.719  Ex parte communications.

    (a) Prohibition.
    (1) From the time the Director issues an Order Instituting 
Proceedings until the date of final decision, no party, interested 
person, or representative thereof shall knowingly make or cause to be 
made an ex parte communication.
    (2) Except to the extent required for the disposition of ex parte 
communication matters as authorized by law, the Secretary's designee 
and the Administrative Law Judge presiding over any proceeding may not:
    (i) consult a person or party on an issue, unless on notice and 
opportunity for all parties to participate; or
    (ii) be responsible to or subject to the supervision, direction of, 
or evaluation by, an employee engaged in the performance of 
investigative or prosecutorial functions for the Department.
    (b) Procedure upon occurrence of ex parte communication. If an ex 
parte communication is received by the Administrative Law Judge or the 
Secretary's designee, the Administrative Law Judge or the Secretary's 
designee, as appropriate, shall cause all of such written communication 
(or, if the communication is oral, a memorandum stating the substance 
of the communication) to be placed on the record of the proceeding and 
served on all parties. A party may, not later than 10 days after the 
date of service, file a response thereto and may recommend that the 
person making the prohibited communication be sanctioned pursuant to 
paragraph (c) of this section.
    (c) Sanctions. Any party to the proceeding, a party's 
representative, or any other interested individual, who makes a 
prohibited ex parte communication, or who encourages or solicits 
another to make any such communication, may be subject to any 
appropriate sanction or sanctions imposed by the Administrative Law 
Judge or the Secretary's designee, as appropriate, for good cause 
shown, including, but not limited to, exclusion from the hearing and an 
adverse ruling on the issue that is the subject of the prohibited 
communication.


Sec.  501.720  Separation of functions.

    Any officer or employee engaged in the performance of investigative 
or prosecutorial functions for the Department in a proceeding as 
defined in Sec.  501.702 may not, in that proceeding or one that is 
factually related, participate or advise in the decision pursuant to 
Section 557 of the Administrative Procedure Act, 5 U.S.C. 557, except 
as a witness or counsel in the proceeding.


Sec.  501.721  Hearings to be public.

    All hearings, except hearings on applications for confidential 
treatment filed pursuant to Sec.  501.725(b), shall be public unless 
otherwise ordered by the Administrative Law Judge or the Secretary's 
designee, as appropriate, on his or her own motion or the motion of a 
party.


Sec.  501.722  Prehearing conferences.

    (a) Purposes of conferences. The purposes of prehearing conferences 
include, but are not limited to:
    (1) Expediting the disposition of the proceeding;
    (2) Establishing early and continuing control of the proceeding by 
the Administrative Law Judge; and
    (3) Improving the quality of the hearing through more thorough 
preparation.
    (b) Procedure. On his or her own motion or at the request of a 
party, the Administrative Law Judge may direct a representative or any 
party to attend one or more prehearing conferences. Such conferences 
may be held with or without the Administrative Law Judge present as the 
Administrative Law Judge deems appropriate. Where such a conference is 
held outside the presence of the Administrative Law Judge, the 
Administrative Law Judge shall be advised promptly by the parties of 
any agreements reached. Such conferences also may be held with one or 
more persons participating by telephone or other remote means.
    (c) Subjects to be discussed. At a prehearing conference 
consideration may be given and action taken with respect to the 
following:
    (1) Simplification and clarification of the issues;
    (2) Exchange of witness and exhibit lists and copies of exhibits;
    (3) Admissions of fact and stipulations concerning the contents, 
authenticity, or admissibility into evidence of documents;
    (4) Matters of which official notice may be taken;
    (5) The schedule for exchanging prehearing motions or briefs, if 
any;
    (6) The method of service for papers;
    (7) Summary disposition of any or all issues;
    (8) Settlement of any or all issues;
    (9) Determination of hearing dates (when the Administrative Law 
Judge is present);
    (10) Amendments to the Order Instituting Proceedings or answers 
thereto;
    (11) Production of documents as set forth in Sec.  501.723, and 
prehearing production of documents in response to subpoenas duces tecum 
as set forth in Sec.  501.728; and
    (12) Such other matters as may aid in the orderly and expeditious 
disposition of the proceeding.
    (d) Timing of conferences. Unless the Administrative Law Judge 
orders otherwise, an initial prehearing conference shall be held not 
later than 14 days after service of an answer. A final conference, if 
any, should be held as close to the start of the hearing as reasonable 
under the circumstances.
    (e) Prehearing orders. At or following the conclusion of any 
conference held pursuant to this rule, the Administrative Law Judge 
shall enter written rulings or orders that recite the agreement(s) 
reached and any procedural determinations made by the Administrative 
Law Judge.
    (f) Failure to appear: default. A respondent who fails to appear, 
in person or through a representative, at a prehearing conference of 
which he or she has been duly notified may be deemed in default 
pursuant to Sec.  501.716(a). A respondent may make a motion to set 
aside a default pursuant to Sec.  501.726(e).


Sec.  501.723  Prehearing disclosures; methods to discover additional 
matter.

    (a) Initial disclosures. (1) Except to the extent otherwise 
stipulated or directed by order of the Administrative Law Judge, a 
party shall, without awaiting a discovery request, provide to the 
opposing party:
    (i) The name and, if known, the address and telephone number of 
each individual likely to have discoverable information that the 
disclosing party may use to support its claims or defenses, unless 
solely for impeachment of a witness appearing in person or by 
deposition, identifying the subjects of the information; and
    (ii) A copy, or a description by category and location, of all 
documents,

[[Page 53649]]

data compilations, and tangible things that are in the possession, 
custody, or control of the party and that the disclosing party may use 
to support its claims or defenses, unless solely for impeachment of a 
witness appearing in person or by deposition;
    (2) The disclosures described in paragraph (a)(1)(i) of this 
section shall be made not later than 30 days after the issuance of an 
Order Instituting Proceedings, unless a different time is set by 
stipulation or by order of the Administrative Law Judge.
    (b) Prehearing disclosures.
    (1) In addition to the disclosures required by paragraph (a) of 
this section, a party must provide to the opposing party, and promptly 
file with the Administrative Law Judge, the following information 
regarding the evidence that it may present at hearing for any purpose 
other than solely for impeachment of a witness appearing in person or 
by deposition:
    (i) An outline or narrative summary of its case or defense (the 
Order Instituting Proceedings will usually satisfy this requirement for 
the Director and the answer thereto will usually satisfy this 
requirement for the respondent);
    (ii) The legal theories upon which it will rely;
    (iii) Copies and a list of documents or exhibits that it intends to 
introduce at the hearing; and
    (iv) A list identifying each witness who will testify on its 
behalf, including the witness's name, occupation, address, phone 
number, and a brief summary of the expected testimony.
    (2) Unless otherwise directed by the Administrative Law Judge, the 
disclosures required by paragraph (b)(1) of this section shall be made 
not later than 30 days before the date of the hearing.
    (c) Disclosure of expert testimony. A party who intends to call an 
expert witness shall submit, in addition to the information required by 
paragraph (b)(1)(iv) of this section, a statement of the expert's 
qualifications, a list of other proceedings in which the expert has 
given expert testimony, and a list of publications authored or co-
authored by the expert.
    (d) Form of disclosures. Unless the Administrative Law Judge orders 
otherwise, all disclosures under paragraphs (a) through (c) of this 
section shall be made in writing, signed, and served as provided in 
Sec.  501.705.
    (e) Methods to discover additional matter. Parties may obtain 
discovery by one or more of the following methods: Depositions of 
witnesses upon oral examination or written questions; written 
interrogatories to another party; production of documents or other 
evidence for inspection; and requests for admission. All depositions of 
Federal employees must take place in Washington, DC, at the Department 
of the Treasury or at the location where the Federal employee to be 
deposed performs his or her duties, whichever the Federal employee's 
supervisor or the Office of Chief Counsel shall deem appropriate. All 
depositions shall be held at a date and time agreed by the Office of 
Chief Counsel and the respondent or respondent's representative, and 
for an agreed length of time.
    (f) Discovery scope and limits. Unless otherwise limited by order 
of the Administrative Law Judge in accordance with paragraph (f)(2) of 
this section, the scope of discovery is as follows:
    (1) In general. The availability of information and documents 
through discovery is subject to the assertion of privileges available 
to the parties and witnesses. Privileges available to the Director and 
the Department include exemptions afforded pursuant to the Freedom of 
Information Act (5 U.S.C. 552(b)(1) through (9)) and the Privacy Act (5 
U.S.C. 552a). Parties may obtain discovery regarding any matter, not 
privileged, that is relevant to the merits of the pending action, 
including the existence, description, nature, custody, condition, and 
location of any books, documents, or other tangible things and the 
identity and location of any persons having knowledge of any 
discoverable matter. For good cause, the Administrative Law Judge may 
order discovery of any matter relevant to the subject matter involved 
in the proceeding. Relevant information need not be admissible at the 
hearing if the discovery appears reasonably calculated to lead to the 
discovery of admissible evidence.
    (2) Limitations. The Administrative Law Judge may issue any order 
that justice requires to ensure that discovery requests are not 
unreasonable, oppressive, excessive in scope or unduly burdensome, 
including an order to show cause why a particular discovery request is 
justified upon motion of the objecting party. The frequency or extent 
of use of the discovery methods otherwise permitted under this section 
may be limited by the Administrative Law Judge if he or she determines 
that:
    (i) The discovery sought is unreasonably cumulative or duplicative, 
or is obtainable from some other source that is more convenient, less 
burdensome, or less expensive;
    (ii) The party seeking discovery has had ample opportunity by 
discovery in the action to obtain the information sought; or
    (iii) The burden or expense of the proposed discovery outweighs its 
likely benefit, taking into account the needs of the hearing, the 
importance of the issues at stake, and the importance of the proposed 
discovery in resolving the issues.
    (3) Interrogatories. Respondent's interrogatories shall be served 
upon the Office of the Chief Counsel not later than 30 days after 
issuance of the Order Instituting Proceedings. The Director's 
interrogatories shall be served by the later of 30 days after the 
receipt of service of respondent's interrogatories or 40 days after 
issuance of the Order Instituting Proceedings if no interrogatories are 
filed by respondent. Parties shall respond to interrogatories not later 
than 30 days after the date interrogatories are received. 
Interrogatories shall be limited to 20 questions only. Each subpart, 
section, or other designation of a part of a question shall be counted 
as one complete question in computing the permitted 20 question total. 
Where more than 20 questions are served upon a party, the receiving 
party may determine which of the 20 questions the receiving party shall 
answer. The limitation on the number of questions in an interrogatory 
may be waived by the Administrative Law Judge.
    (4) Privileged matter. Privileged documents are not discoverable. 
Privileges include, but are not limited to, the attorney-client 
privilege, attorney work-product privilege, any government's or 
government agency's deliberative-process or classified information 
privilege, including materials classified pursuant to Executive Order 
12958 (3 CFR, 1995 Comp., p. 333) and any future Executive orders that 
may be issued relating to the treatment of national security 
information, and all materials and information exempted from release to 
the public pursuant to the Privacy Act (5 U.S.C. 552a) or the Freedom 
of Information Act (5 U.S.C. 552(b)(1) through (9)).
    (g) Updating discovery. A party who has made an initial disclosure 
under paragraph (a) of this section or responded to a request for 
discovery with a disclosure or response is under a duty to supplement 
or correct the disclosure or response to include information thereafter 
acquired whenever:
    (1) The party learns that in some material respect the information 
disclosed is incomplete or incorrect, if the additional or corrective 
information has not otherwise been made known to

[[Page 53650]]

the other party during the discovery process or in writing; or
    (2) Ordered by the Administrative Law Judge. The Administrative Law 
Judge may impose sanctions for failure to supplement or correct 
discovery.
    (h) Time limits. All discovery, including all responses to 
discovery requests, shall be completed not later than 20 days prior to 
the date scheduled for the commencement of the hearing, unless the 
Administrative Law Judge finds on the record that good cause exists to 
grant additional time to complete discovery.
    (i) Effect of failure to comply. No witness may testify and no 
document or exhibit may be introduced at the hearing if such witness, 
document, or exhibit is not listed in the prehearing submissions 
pursuant to paragraphs (b) and (c) of this section, except for good 
cause shown.


Sec.  501.724  Documents that may be withheld.

    (a) Notwithstanding Sec.  501.723(f), the Director or respondent 
may withhold a document if:
    (1) The document is privileged;
    (2) The document would disclose the identity of a confidential 
source; or
    (3) The Administrative Law Judge grants leave to withhold a 
document or category of documents as not relevant to the subject matter 
of the proceeding or otherwise, for good cause shown.
    (b) Nothing in paragraph (a) of this section authorizes the 
Director to withhold documents that contain material exculpatory 
evidence.
    (c) Withheld document list. The Director and respondent shall 
provide the Administrative Law Judge, for review, a list of documents 
withheld pursuant to paragraphs (a)(1)-(3) of this section. The 
Administrative Law Judge shall determine whether any such document 
should be made available for inspection and copying.


Sec.  501.725  Confidential treatment of information in certain 
filings.

    (a) Filing document under seal.
    (1) The Director may file any document or any part of a document 
under seal and/or seek a protective order concerning any document if 
disclosure of the document would be inconsistent with the protection of 
the public interest or if justice requires protection of any person, 
including a source or a party, from annoyance, threat, oppression, or 
undue burden or expense, or the disclosure of the information would be, 
or might reasonably lead to a disclosure, contrary to Executive Order 
12958, as amended by Executive Order 13292, or other Executive orders 
concerning disclosure of information, Department regulations, or the 
Privacy Act, or information exempt from release under the Freedom of 
Information Act. The Administrative Law Judge shall allow placement of 
any such document under seal and/or grant a protective order upon a 
showing that the disclosure would be inconsistent with any such statute 
or Executive order, or that the harm resulting from disclosure would 
outweigh the benefits of disclosure.
    (2) A respondent may file any document or any part of a document 
under seal and/or seek a protective order to limit such document from 
disclosure to other parties or to the public. The Administrative Law 
Judge shall allow placement of any document under seal and/or grant a 
protective order upon a showing that the harm resulting from disclosure 
would outweigh the benefits of disclosure.
    (3) The Administrative Law Judge shall safeguard the security and 
integrity of any documents under seal or protective order and shall 
take all appropriate steps to preserve the confidentiality of such 
documents or any parts thereof, including closing a hearing or portions 
of a hearing to the public. Release of any information under seal or to 
the extent inconsistent with a protective order, in any form or manner, 
is subject to the sanctions and the exercise of the authorities as are 
provided with respect to ex parte communications under Sec.  501.719.
    (4) If the Administrative Law Judge denies placement of any 
document under seal or under protective order, any party, and any 
person whose document or material is at issue, may obtain interlocutory 
review by the Secretary's designee. In such cases the Administrative 
Law Judge shall not release or expose any of the records or documents 
in question to the public or to any person for a period of 20 days from 
the date of the Administrative Law Judge's ruling, in order to permit a 
party the opportunity either to withdraw the records and documents or 
obtain interlocutory review by the Secretary's designee and an order 
that the records be placed under seal or a protective order.
    (5) Upon settlement, final decision, or motion to the 
Administrative Law Judge for good cause shown, all materials (including 
all copies) under seal or protective order shall be returned to the 
submitting parties, except when it may be necessary to retain a record 
until any judicial process is completed.
    (6)(i) Written notice of each request for release of documents or 
materials under seal or subject to a protective order shall be given to 
the parties at least 20 days prior to any permitted release or prior to 
any access not specifically authorized under a protective order. A copy 
of each request for information, including the name, address, and 
telephone number of the requester, shall be provided to the parties.
    (ii) Each request for access to protected material shall include 
the names, addresses, and telephone numbers of all persons on whose 
behalf the requester seeks access to protected information. The 
Administrative Law Judge may impose sanctions as provided under Sec.  
501.729 for failure to provide this information.
    (b) Application. An application for a protective order or to place 
under seal shall be filed with the Administrative Law Judge. The 
application shall be accompanied by a sealed copy of the materials as 
to which confidential treatment is sought.
    (1) Procedure for supplying additional information. The person 
making the application may be required to furnish in writing additional 
information with respect to the grounds for objection to public 
disclosure. Failure to supply the information so requested within 14 
days from the date of receipt of a notice of the information required 
shall be deemed a waiver of the objection to public disclosure of that 
portion of the information to which the additional information relates, 
unless the Administrative Law Judge shall otherwise order for good 
cause shown at or before the expiration of such 14-day period.
    (2) Confidentiality of materials pending final decision. Pending 
the determination of the application for confidential treatment, 
transcripts, non-final orders including an initial decision, if any, 
and other materials in connection with the application shall be placed 
under seal; shall be for the confidential use only of the 
Administrative Law Judge, the Secretary's designee, the applicant, the 
Director, and any other respondent and representative; and shall be 
made available to the public only in accordance with orders of the 
Administrative Law Judge or the Secretary's designee.
    (3) Public availability of orders. Any final order of the 
Administrative Law Judge or the Secretary's designee denying or 
sustaining an application for confidential treatment shall be made 
public. Any prior findings or opinions relating to an application for 
confidential treatment under this section shall be made public at such 
time as the material as to which

[[Page 53651]]

confidentiality was requested is made public.


Sec.  501.726  Motions.

    (a) Generally. Unless made during a hearing or conference, a motion 
shall be in writing, shall state with particularity the grounds 
therefor, shall set forth the relief or order sought, and shall be 
accompanied by a written brief of the points and authorities relied 
upon. Motions by a respondent must be filed with the Administrative Law 
Judge and served upon the Director through the Office of Chief Counsel 
and with any other party respondent or respondent's representative, 
unless otherwise directed by the Administrative Law Judge. Motions by 
the Director must be filed with the Administrative Law Judge and served 
upon each party respondent or respondent's representative. All written 
motions must be served in accordance with, and otherwise meet the 
requirements of, Sec.  501.705. The Administrative Law Judge may order 
that an oral motion be submitted in writing. No oral argument shall be 
heard on any motion unless the Administrative Law Judge otherwise 
directs.
    (b) Opposing and reply briefs. Except as provided in Sec.  
501.741(e), briefs in opposition to a motion shall be filed not later 
than 15 days after service of the motion. Reply briefs shall be filed 
not later than 3 days after service of the opposition. The failure of a 
party to oppose a written motion or an oral motion made on the record 
shall be deemed a waiver of objection by that party to the entry of an 
order substantially in the form of any proposed order accompanying the 
motion.
    (c) Dilatory motions. Frivolous, dilatory, or repetitive motions 
are prohibited. The filing of such motions may form the basis for 
sanctions.
    (d) Length limitation. Except as otherwise ordered by the 
Administrative Law Judge, a brief in support of, or in opposition to, a 
motion shall not exceed 15 pages, exclusive of pages containing any 
table of contents, table of authorities, or addendum.
    (e) A motion to set aside a default shall be made within a 
reasonable time as determined by the Administrative Law Judge, state 
the reasons for the failure to appear or defend, and, if applicable, 
specify the nature of the proposed defense in the proceeding. In order 
to prevent injustice and on such conditions as may be appropriate, the 
Administrative Law Judge, at any time prior to the filing of his or her 
decision, or the Secretary's designee, at any time during the review 
process, may for good cause shown set aside a default.


Sec.  501.727  Motion for summary disposition.

    (a) At any time after a respondent's answer has been filed, the 
respondent or the Director may make a motion for summary disposition of 
any or all allegations contained in the Order Instituting Proceedings. 
If the Director has not completed presentation of his or her case-in-
chief, a motion for summary disposition shall be made only with 
permission of the Administrative Law Judge. The facts of the pleadings 
of the party against whom the motion is made shall be taken as true, 
except as modified by stipulations or admissions made by that party, by 
uncontested affidavits, or by facts officially noticed pursuant to 
Sec.  501.732(b).
    (b) Decision on motion. The Administrative Law Judge may promptly 
decide the motion for summary disposition or may defer decision on the 
motion. The Administrative Law Judge shall issue an order granting a 
motion for summary disposition if the record shows there is no genuine 
issue with regard to any material fact and the party making the motion 
is entitled to a summary disposition as a matter of law.
    (c) A motion for summary disposition must be accompanied by a 
statement of the material facts as to which the moving party contends 
there is no genuine issue. Such motion must be supported by documentary 
evidence, which may take the form of admissions in pleadings, 
stipulations, depositions, transcripts, affidavits, and any other 
evidentiary materials that the moving party contends support its 
position. The motion must also be accompanied by a brief containing the 
points and authorities in support of the moving party's arguments. Any 
party opposing a motion for summary disposition must file a statement 
setting forth those material facts as to which such party contends a 
genuine dispute exists. The opposition must be supported by evidence of 
the same type as that submitted with the motion for summary disposition 
and a brief containing the points and authorities in support of the 
contention that summary disposition would be inappropriate.


Sec.  501.728  Subpoenas.

    (a) Availability; procedure. In connection with any hearing before 
an Administrative Law Judge, either the respondent or the Director may 
request the issuance of subpoenas requiring the attendance and 
testimony of witnesses at the designated time and place of hearing, and 
subpoenas requiring the production of documentary or other tangible 
evidence returnable at a designated time and place. Unless made on the 
record at a hearing, requests for issuance of a subpoena shall be made 
in writing and served on each party pursuant to Sec.  501.705.
    (b) Standards for issuance. If it appears to the Administrative Law 
Judge that a subpoena sought may be unreasonable, oppressive, excessive 
in scope, or unduly burdensome, he or she may, in his or her 
discretion, as a condition precedent to the issuance of the subpoena, 
require the person seeking the subpoena to show the general relevance 
and reasonable scope of the testimony or other evidence sought. If 
after consideration of all the circumstances, the Administrative Law 
Judge determines that the subpoena or any of its terms is unreasonable, 
oppressive, excessive in scope, or unduly burdensome, he or she may 
refuse to issue the subpoena, or issue a modified subpoena as fairness 
requires. In making the foregoing determination, the Administrative Law 
Judge may inquire of the other participants whether they will stipulate 
to the facts sought to be proved.
    (c) Service. Service of a subpoena shall be made pursuant to the 
provisions of Sec.  501.705.
    (d) Application to quash or modify.
    (1) Procedure. Any person to whom a subpoena is directed or who is 
an owner, creator or the subject of the documents or materials that are 
to be produced pursuant to a subpoena may, prior to the time specified 
therein for compliance, but not later than 15 days after the date of 
service of such subpoena, request that the subpoena be quashed or 
modified. Such request shall be made by application filed with the 
Administrative Law Judge and served on all parties pursuant to Sec.  
501.705. The party on whose behalf the subpoena was issued may, not 
later than 5 days after service of the application, file an opposition 
to the application.
    (2) Standards governing application to quash or modify. If the 
Administrative Law Judge determines that compliance with the subpoena 
would be unreasonable, oppressive or unduly burdensome, the 
Administrative Law Judge may quash or modify the subpoena, or may order 
return of the subpoena only upon specified conditions. These conditions 
may include, but are not limited to, a requirement that the party on 
whose behalf the subpoena was issued shall make reasonable compensation 
to the person to whom the subpoena was addressed for the cost of 
copying or

[[Page 53652]]

transporting evidence to the place for return of the subpoena.
    (e) Witness fees and mileage. Witnesses summoned to appear at a 
proceeding shall be paid the same fees and mileage that are paid to 
witnesses in the courts of the United States, and witnesses whose 
depositions are taken and the persons taking the same shall severally 
be entitled to the same fees as are paid for like services in the 
courts of the United States. Witness fees and mileage shall be paid by 
the party at whose instance the witnesses appear.


Sec.  501.729  Sanctions.

    (a) Contemptuous conduct.
    (1) Subject to exclusion or suspension. Contemptuous conduct by any 
person before an Administrative Law Judge or the Secretary's designee 
during any proceeding, including any conference, shall be grounds for 
the Administrative Law Judge or the Secretary's designee to:
    (i) Exclude that person from such hearing or conference, or any 
portion thereof; and/or
    (ii) If a representative, summarily suspend that person from 
representing others in the proceeding in which such conduct occurred 
for the duration, or any portion, of the proceeding.
    (2) Adjournment. Upon motion by a party represented by a 
representative subject to an order of exclusion or suspension, an 
adjournment shall be granted to allow the retention of a new 
representative. In determining the length of an adjournment, the 
Administrative Law Judge or the Secretary's designee shall consider, in 
addition to the factors set forth in Sec.  501.737, the availability of 
another representative for the party or, if the representative was a 
counsel, of other members of a suspended counsel's firm.
    (b) Deficient filings; leave to cure deficiencies. The 
Administrative Law Judge, or the Secretary's designee in the case of a 
request for review, may in his or her discretion, reject, in whole or 
in part, any filing that fails to comply with any requirements of this 
subpart or of any order issued in the proceeding in which the filing 
was made. Any such filings shall not be part of the record. The 
Administrative Law Judge or the Secretary's designee may direct a party 
to cure any deficiencies and to resubmit the filing within a fixed time 
period.
    (c) Failure to make required filing or to cure deficient filing. 
The Administrative Law Judge (or the Secretary's designee during review 
proceedings) may enter a default pursuant to Sec.  501.716, dismiss the 
case, decide the particular matter at issue against that person, or 
prohibit the introduction of evidence or exclude testimony concerning 
that matter if a person fails:
    (1) To make a filing required under this subpart; or
    (2) To cure a deficient filing within the time specified by the 
Administrative Law Judge or the Secretary's designee pursuant to 
paragraph (b) of this section.
    (d) Failure to make required filing or to cure deficient filing in 
the case of a request for review. The Secretary's designee, in any case 
of a request for review, may decide the issue against that person, or 
prohibit the introduction of evidence or exclude testimony concerning 
that matter if a person fails:
    (1) To make a filing required under this subpart; or
    (2) To cure a deficient filing within the time specified by the 
Secretary's designee pursuant to paragraph (b) of this section.


Sec.  501.730  Depositions upon oral examination.

    (a) Procedure. Any party desiring to take the testimony of a 
witness by deposition shall make a written motion setting forth the 
reasons why such deposition should be taken including the specific 
reasons why the party believes the witness may be unable to attend or 
testify at the hearing; the name and address of the prospective 
witness; the matters concerning which the prospective witness is 
expected to be questioned; and the proposed time and place for the 
taking of the deposition.
    (b) Required finding when ordering a deposition. In the discretion 
of the Administrative Law Judge, an order for deposition may be issued 
upon a finding that the prospective witness will likely give testimony 
material to the proceeding, that it is likely the prospective witness 
will be unable to attend or testify at the hearing because of age, 
sickness, infirmity, imprisonment or other disability, and that the 
taking of a deposition will serve the interests of justice.
    (c) Contents of order. An order for deposition shall designate by 
name a deposition officer. The designated officer may be the 
Administrative Law Judge or any other person authorized to administer 
oaths by the laws of the United States or of the place where the 
deposition is to be held. An order for deposition also shall state:
    (1) The name of the witness whose deposition is to be taken;
    (2) The scope of the testimony to be taken;
    (3) The time and place of the deposition;
    (4) The manner of recording, preserving and filing the deposition; 
and
    (5) The number of copies, if any, of the deposition and exhibits to 
be filed upon completion of the deposition.
    (d) Procedure at depositions. A witness whose testimony is taken by 
deposition shall swear or affirm before any questions are put to him or 
her. Examination and cross-examination of witnesses may proceed as 
permitted at a hearing. A witness being deposed may have counsel or a 
representative present during the deposition.
    (e) Objections to questions or evidence. Objections to questions or 
evidence shall be in short form, stating the grounds of objection 
relied upon. Objections to questions or evidence shall be noted by the 
deposition officer upon the deposition, but a deposition officer (other 
than an Administrative Law Judge) shall not have the power to decide on 
the competency, materiality or relevance of evidence. Failure to object 
to questions or evidence before the deposition officer shall not be 
deemed a waiver unless the ground of the objection is one that might 
have been obviated or removed if presented at that time.
    (f) Filing of depositions. The questions asked and all answers or 
objections shall be recorded or transcribed verbatim, and a transcript 
shall be prepared by the deposition officer, or under his or her 
direction. The transcript shall be subscribed by the witness and 
certified by the deposition officer. The original deposition transcript 
and exhibits shall be filed with the Administrative Law Judge. A copy 
of the deposition transcript and exhibits shall be served on the 
opposing party or parties. The cost of the transcript (including 
copies) shall be paid by the party requesting the deposition.


Sec.  501.731  Depositions upon written questions.

    (a) Availability. Depositions may be taken and submitted on written 
questions upon motion of any party. The motion shall include the 
information specified in Sec.  501.730(a). A decision on the motion 
shall be governed by Sec.  501.730(b).
    (b) Procedure. Written questions shall be filed with the motion. 
Not later than 10 days after service of the motion and written 
questions, any party may file objections to such written questions and 
any party may file cross-questions. When a deposition is taken pursuant 
to this section no persons other than the witness, representative or 
counsel to the witness, the deposition officer, and, if the deposition 
officer does not act as reporter, a reporter, shall be present at the 
examination of the witness. No party

[[Page 53653]]

shall be present or represented unless otherwise permitted by order. 
The deposition officer shall propound the questions and cross-questions 
to the witness in the order submitted.
    (c) Additional requirements. The order for deposition, filing of 
the deposition, form of the deposition and use of the deposition in the 
record shall be governed by paragraphs (b) through (g) of Sec.  
501.730, except that no cross-examination shall be made.


Sec.  501.732  Evidence.

    The applicable evidentiary standard for proceedings under this 
subpart is proof by a preponderance of reliable, probative, and 
substantial evidence. The Administrative Law Judge shall admit any 
relevant and material oral, documentary, or demonstrative evidence. The 
Federal Rules of Evidence do not apply, by their own force, to 
proceedings under this subpart, but shall be employed as general 
guidelines. The fact that evidence submitted by a party is hearsay goes 
only to the weight of the evidence and does not affect its 
admissibility.
    (a) Objections and offers of proof.
    (1) Objections. Objections to the admission or exclusion of 
evidence must be made on the record and shall be in short form, stating 
the grounds relied upon. Exceptions to any ruling thereon by the 
Administrative Law Judge need not be noted at the time of the ruling. 
Such exceptions will be deemed waived on review by the Secretary's 
designee, however, unless raised:
    (i) Pursuant to interlocutory review in accordance with Sec.  
501.741;
    (ii) In a proposed finding or conclusion filed pursuant to Sec.  
501.738; or
    (iii) In a petition for the Secretary's designee's review of an 
Administrative Law Judge's decision filed in accordance with Sec.  
501.741.
    (2) Offers of proof. Whenever evidence is excluded from the record, 
the party offering such evidence may make an offer of proof, which 
shall be included in the record. Excluded material shall be retained 
pursuant to Sec.  501.739(b).
    (b) Official notice. An Administrative Law Judge or Secretary's 
designee may take official notice of any material fact that might be 
judicially noticed by a district court of the United States, any matter 
in the public official records of the Secretary, or any matter that is 
particularly within the knowledge of the Department as an expert body. 
If official notice is requested or taken of a material fact not 
appearing in the evidence in the record, a party, upon timely request 
to the Administrative Law Judge, shall be afforded an opportunity to 
establish the contrary.
    (c) Stipulations. The parties may, by stipulation, at any stage of 
the proceeding agree upon any pertinent fact in the proceeding. A 
stipulation may be received in evidence and, when accepted by the 
Administrative Law Judge, shall be binding on the parties to the 
stipulation.
    (d) Presentation under oath or affirmation. A witness at a hearing 
for the purpose of taking evidence shall testify under oath or 
affirmation.
    (e) Presentation, rebuttal and cross-examination. A party is 
entitled to present its case or defense by oral or documentary 
evidence, to submit rebuttal evidence, and to conduct such cross-
examination as, in the discretion of the Administrative Law Judge, may 
be required for a full and true disclosure of the facts.


Sec.  501.733  Evidence: confidential information, protective orders.

    (a) Procedure. In any proceeding as defined in Sec.  501.702, a 
respondent; the Director; any person who is the owner, subject or 
creator of a document subject to subpoena or which may be introduced as 
evidence; or any witness who testifies at a hearing may file a motion 
requesting a protective order to limit from disclosure to other parties 
or to the public documents or testimony containing confidential 
information. The motion should include a general summary or extract of 
the documents without revealing confidential details. If a person seeks 
a protective order against disclosure to other parties as well as the 
public, copies of the documents shall not be served on other parties. 
Unless the documents are unavailable, the person shall file for 
inspection by the Administrative Law Judge a sealed copy of the 
documents as to which the order is sought.
    (b) Basis for issuance. Documents and testimony introduced in a 
public hearing are presumed to be public. A motion for a protective 
order shall be granted only upon a finding that the harm resulting from 
disclosure would outweigh the benefits of disclosure.
    (c) Requests for additional information supporting confidentiality. 
A person seeking a protective order under paragraph (a) of this section 
may be required to furnish in writing additional information with 
respect to the grounds for confidentiality. Failure to supply the 
information so requested not later than 5 days from the date of receipt 
by the person of a notice of the information required shall be deemed a 
waiver of the objection to public disclosure of that portion of the 
documents to which the additional information relates, unless the 
Administrative Law Judge shall otherwise order for good cause shown at 
or before the expiration of such 5-day period.
    (d) Confidentiality of documents pending decision. Pending a 
determination of a motion under this section, the documents as to which 
confidential treatment is sought and any other documents that would 
reveal the confidential information in those documents shall be 
maintained under seal and shall be disclosed only in accordance with 
orders of the Administrative Law Judge. Any order issued in connection 
with a motion under this section shall be made public unless the order 
would disclose information as to which a protective order has been 
granted, in which case that portion of the order that would reveal the 
protected information shall not be made public.


Sec.  501.734  Introducing prior sworn statements of witnesses into the 
record.

    (a) At a hearing, any person wishing to introduce a prior, sworn 
statement of a witness who is not a party to the proceeding, that is 
otherwise admissible in the proceeding, may make a motion setting forth 
the reasons therefor. If only part of a statement is offered in 
evidence, the Administrative Law Judge may require that all relevant 
portions of the statement be introduced. If all of a statement is 
offered in evidence, the Administrative Law Judge may require that 
portions not relevant to the proceeding be excluded. A motion to 
introduce a prior sworn statement may be granted if:
    (1) The witness is dead;
    (2) The witness is out of the United States, unless it appears that 
the absence of the witness was procured by the party offering the prior 
sworn statement;
    (3) The witness is unable to attend or testify because of age, 
sickness, infirmity, imprisonment or other disability;
    (4) The party offering the prior sworn statement has been unable to 
procure the attendance of the witness by subpoena; or,
    (5) In the discretion of the Administrative Law Judge, it would be 
desirable, in the interests of justice, to allow the prior sworn 
statement to be used. In making this determination, due regard shall be 
given to the presumption that witnesses will testify orally in an open 
hearing. If the parties have stipulated to accept a prior sworn 
statement in lieu of live testimony, consideration shall also be given 
to the

[[Page 53654]]

convenience of the parties in avoiding unnecessary expense.


Sec.  501.735  Proposed findings, conclusions and supporting briefs.

    (a) Opportunity to file. Before a decision is issued by the 
Administrative Law Judge, each party shall have an opportunity, 
reasonable in light of all the circumstances, to file in writing 
proposed findings and conclusions.
    (b) Procedure. Proposed findings of fact must be supported by 
citations to specific portions of the record. If successive filings are 
directed, the proposed findings and conclusions of the party assigned 
to file first shall be set forth in serially numbered paragraphs, and 
any counter statement of proposed findings and conclusions shall, in 
addition to any other matter presented, indicate those paragraphs of 
the proposals already filed as to which there is no dispute. A reply 
brief may be filed by the party assigned to file first, or, where 
simultaneous filings are directed, reply briefs may be filed by each 
party, within the period prescribed therefor by the Administrative Law 
Judge. No further briefs may be filed except with permission of the 
Administrative Law Judge.
    (c) Time for filing. In any proceeding in which a decision is to be 
issued:
    (1) At the close of each hearing, the Administrative Law Judge 
shall, by order, after consultation with the parties, prescribe the 
period within which proposed findings and conclusions and supporting 
briefs are to be filed. The party directed to file first shall make its 
initial filing not later than 30 days after the end of the hearing 
unless the Administrative Law Judge, for good cause shown, permits a 
different period and sets forth in the order the reasons why the 
different period is necessary.
    (2) The total period within which all such proposed findings and 
conclusions and supporting briefs and any counter statements of 
proposed findings and conclusions and reply briefs are to be filed 
shall be no longer than 90 days after the close of the hearing unless 
the Administrative Law Judge, for good cause shown, permits a different 
period and sets forth in an order the reasons why the different period 
is necessary.


Sec.  501.736  Authority of Administrative Law Judge.

    The Administrative Law Judge shall have authority to do all things 
necessary and appropriate to discharge his or her duties. No provision 
of these rules shall be construed to limit the powers of the 
Administrative Law Judge provided by the Administrative Procedure Act, 
5 U.S.C. 556, 557. The powers of the Administrative Law Judge include, 
but are not limited to:
    (a) Administering oaths and affirmations;
    (b) Issuing subpoenas authorized by law and revoking, quashing, or 
modifying any such subpoena;
    (c) Receiving relevant evidence and ruling upon the admission of 
evidence and offers of proof;
    (d) Regulating the course of a proceeding and the conduct of the 
parties and their representatives;
    (e) Holding prehearing and other conferences as set forth in Sec.  
501.726 and requiring the attendance at any such conference of at least 
one representative of each party who has authority to negotiate 
concerning the resolution of issues in controversy;
    (f) Subject to any limitations set forth elsewhere in this subpart, 
considering and ruling on all procedural and other motions;
    (g) Upon notice to all parties, reopening any hearing prior to the 
issuance of a decision;
    (h) Requiring production of records or any information relevant to 
any act or transaction subject to a hearing under this subpart, and 
imposing sanctions available under Federal Rule of Civil Procedure 
37(b)(2) (Fed. R. Civ. P. 37(b)(2), 28 U.S.C.) for a party's failure to 
comply with discovery requests;
    (i) Establishing time, place, and manner limitations on the 
attendance of the public and the media for any hearing; and
    (j) Setting fees and expenses for witnesses, including expert 
witnesses.


Sec.  501.737  Adjustments of time, postponements and adjournments.

    (a) Availability. Except as otherwise provided by law, the 
Administrative Law Judge or the Secretary's designee, as appropriate, 
at any time prior to the filing of his or her decision, may, for good 
cause and in the interest of justice, modify any time limit prescribed 
by this subpart and may, consistent with paragraph (b) of this section, 
postpone or adjourn any hearing.
    (b) Limitations on postponements, adjournments and adjustments. A 
hearing shall begin at the time and place ordered, provided that, 
within the limits provided, the Administrative Law Judge or the 
Secretary's designee, as appropriate, may for good cause shown postpone 
the commencement of the hearing or adjourn a convened hearing for a 
reasonable period of time.
    (1) Additional considerations. In considering a motion for 
postponement of the start of a hearing, adjournment once a hearing has 
begun, or extensions of time for filing papers, the Administrative Law 
Judge or the Secretary's designee, as appropriate, shall consider, in 
addition to any other factors:
    (i) The length of the proceeding to date;
    (ii) The number of postponements, adjournments or extensions 
already granted;
    (iii) The stage of the proceedings at the time of the request; and
    (iv) Any other matter as justice may require.
    (2) Time limit. Postponements, adjournments or extensions of time 
for filing papers shall not exceed 21 days unless the Administrative 
Law Judge or the Secretary's designee, as appropriate, states on the 
record or sets forth in a written order the reasons why a longer period 
of time is necessary.


Sec.  501.738  Disqualification and withdrawal of Administrative Law 
Judge.

    (a) Notice of disqualification. If at any time an Administrative 
Law Judge or Secretary's designee believes himself or herself to be 
disqualified from considering a matter, the Administrative Law Judge or 
Secretary's designee, as appropriate, shall issue a notice stating that 
he or she is withdrawing from the matter and setting forth the reasons 
therefor.
    (b) Motion for Withdrawal. Any party who has a reasonable, good 
faith basis to believe an Administrative Law Judge or Secretary's 
designee has a personal bias, or is otherwise disqualified from hearing 
a case, may make a motion to the Administrative Law Judge or 
Secretary's designee, as appropriate, that the Administrative Law Judge 
or Secretary's designee withdraw. The motion shall be accompanied by a 
statement subject to 18 U.S.C. 1001 setting forth in detail the facts 
alleged to constitute grounds for disqualification. If the 
Administrative Law Judge or Secretary's designee finds himself or 
herself qualified, he or she shall so rule and shall continue to 
preside over the proceeding.


Sec.  501.739  Record in proceedings before Administrative Law Judge; 
retention of documents; copies.

    (a) Recordation. Unless otherwise ordered by the Administrative Law 
Judge, all hearings shall be recorded and a written transcript thereof 
shall be prepared.
    (1) Availability of a transcript. Transcripts of hearings shall be 
available for purchase.
    (2) Transcript correction. Prior to the filing of post-hearing 
briefs or proposed findings and conclusions, or within

[[Page 53655]]

such earlier time as directed by the Administrative Law Judge, a party 
or witness may make a motion to correct the transcript. Proposed 
corrections of the transcript may be submitted to the Administrative 
Law Judge by stipulation pursuant to Sec.  501.732(c), or by motion. 
Upon notice to all parties to the proceeding, the Administrative Law 
Judge may, by order, specify corrections to the transcript.
    (b) Contents of the record. The record of each hearing shall 
consist of:
    (1) The Order Instituting Proceedings, Answer to Order Instituting 
Proceedings, Notice of Hearing and any amendments thereto;
    (2) Each application, motion, submission or other paper, and any 
amendments, motions, objections, and exceptions to or regarding them;
    (3) Each stipulation, transcript of testimony, interrogatory, 
deposition, and document or other item admitted into evidence;
    (4) With respect to a request to disqualify an Administrative Law 
Judge or to allow the Administrative Law Judge's withdrawal under Sec.  
501.738, each affidavit or transcript of testimony taken and the 
decision made in connection with the request;
    (5) All proposed findings and conclusions;
    (6) Each written order issued by the Administrative Law Judge; and
    (7) Any other document or item accepted into the record by the 
Administrative Law Judge.
    (c) Retention of documents not admitted. Any document offered as 
evidence but excluded, and any document marked for identification but 
not offered as an exhibit, shall not be part of the record. The 
Administrative Law Judge shall retain any such document until the later 
of the date the proceeding becomes final, or the date any judicial 
review of the final proceeding is no longer available.
    (d) Substitution of copies. A true copy of a document may be 
substituted for any document in the record or any document retained 
pursuant to paragraph (c) of this section.


Sec.  501.740  Decision of Administrative Law Judge.

    The Administrative Law Judge shall prepare a decision that 
constitutes his or her final disposition of the proceedings.
    (a) Content. (1) The Administrative Law Judge shall determine 
whether or not the respondent has violated any provision of parts 500 
and 515 of this chapter or the provisions of any license, ruling, 
regulation, order, direction or instruction issued by or under the 
authority of the Secretary pursuant to part 500 or 515 of this chapter 
or otherwise under the Trading with the Enemy Act.
    (2) The Administrative Law Judge's decision shall include findings 
and conclusions, and the reasons or basis therefor, as to all the 
material issues of fact, law or discretion presented on the record.
    (3) (i) Upon a finding of violation, the Administrative Law Judge 
shall award an appropriate monetary civil penalty in an amount 
consistent with the Penalty Guidelines published by the Director.
    (ii) Notwithstanding paragraph (a)(3)(i) of this section, the 
Administrative Law Judge:
    (A) Shall provide an opportunity for a respondent to assert his or 
her inability to pay a penalty, or financial hardship, by filing with 
the Administrative Law Judge a financial disclosure statement subject 
to 18 U.S.C. 1001 that sets forth in detail the basis for the financial 
hardship or the inability to pay; and
    (B) Shall consider any such filing in determining the appropriate 
monetary civil penalty.
    (b) Administrative Law Judge's decision.
    (1) Service. The Administrative Law Judge shall serve his or her 
decision on the respondent and on the Director through the Office of 
Chief Counsel, and shall file a copy of the decision with the 
Secretary's designee.
    (2) Filing of report with the Secretary's designee. If the 
respondent or Director files a petition for review pursuant to Sec.  
501.741, or upon a request from the Secretary's designee, the 
Administrative Law Judge shall file his or her report with the 
Secretary's designee not later than 20 days after service of his or her 
decision on the parties. The report shall consist of the record, 
including the Administrative Law Judge's decision, and any petition 
from the respondent or the Director seeking review.
    (3) Correction of errors. Until the Administrative Law Judge's 
report has been directed for review by the Secretary's designee or, in 
the absence of a direction for review, until the decision has become a 
final order, the Administrative Law Judge may correct clerical errors 
and errors arising through oversight or inadvertence in decisions, 
orders, or other parts of the record.
    (c) Administrative Law Judge's decision final unless review 
directed. Unless the Secretary's designee determines to review a 
decision in accordance with Sec.  501.741(a)(1), the decision of the 
Administrative Law Judge shall become the final decision of the 
Department.
    (d) Penalty awarded. The Director is charged with implementing all 
final decisions of the Department and, upon a finding of violation and/
or award of a civil monetary penalty, shall carry out the necessary 
steps to close the action.


Sec.  501.741  Review of decision or ruling.

    (a) Availability. (1)(i) Review of the decision of the 
Administrative Law Judge by the Secretary's designee is not a right. 
The Secretary's designee may, in his or her discretion, review the 
decision of the Administrative Law Judge on the petition of either the 
respondent or the Director, or upon his or her own motion. The 
Secretary's designee shall determine whether to review a decision:
    (A) If a petition for review has been filed by the respondent or 
the Director, not later than 30 days after that date the Administrative 
Law Judge filed his or her report with the Secretary's designee 
pursuant to paragraph (b)(2) of this section; or
    (B) If no petition for review has been filed by the respondent or 
the Director, not later than 40 days after the date the Administrative 
Law Judge filed his or her decision with the Secretary's designee 
pursuant to paragraph (b)(1) of this section.
    (ii) In determining whether to review a decision upon petition of 
the respondent or the Director, the Secretary's designee shall consider 
whether the petition for review makes a reasonable showing that:
    (A) a prejudicial error was committed in the conduct of the 
proceeding; or
    (B) the decision embodies:
    (1) a finding or conclusion of material fact that is clearly 
erroneous;
    (2) a conclusion of law that is erroneous; or
    (3) an exercise of discretion or decision of law or policy that is 
important and that the Secretary's designee should review.
    (2) Interlocutory review of ruling. The Secretary's designee shall 
review any ruling of an Administrative Law Judge involving privileged 
or confidential material that is the subject of a petition for review. 
See Sec.  501.725.
    (b) Filing. Either the respondent or the Director, when adversely 
affected or aggrieved by the decision or ruling of the Administrative 
Law Judge, may seek review by the Secretary's designee by filing a 
petition for review. Any petition for review shall be filed with the 
Administrative Law Judge within 10 days after service of the 
Administrative Law Judge's decision or the issuance of a ruling 
involving privileged or confidential material.

[[Page 53656]]

    (c) Contents. The petition shall state why the Secretary's designee 
should review the Administrative Law Judge's decision or ruling, 
including: Whether the Administrative Law Judge's decision or ruling 
raises an important question of law, policy or discretion; whether 
review by the Secretary's designee will resolve a question about which 
the Department's Administrative Law Judges have rendered differing 
opinions; whether the Administrative Law Judge's decision or ruling is 
contrary to law or Department precedent; whether a finding of material 
fact is not supported by a preponderance of the evidence; or whether a 
prejudicial error of procedure or an abuse of discretion was committed. 
A petition should concisely state the portions of the decision or 
ruling for which review is sought. A petition shall not incorporate by 
reference a brief or legal memorandum.
    (d) When filing effective. A petition for review is filed when 
received by the Administrative Law Judge.
    (e) Statements in opposition to petition. Not later than 8 days 
after the filing of a petition for review, either the respondent or the 
Director may file a statement in opposition to a petition. A statement 
in opposition to a petition for review shall be filed in the manner 
specified in this section for filing of petitions for review. 
Statements in opposition shall concisely state why the Administrative 
Law Judge's decision or ruling should not be reviewed with respect to 
each portion of the petition to which it is addressed.
    (f) Number of copies. An original and three copies of a petition or 
a statement in opposition to a petition shall be filed with the 
Administrative Law Judge.
    (g) Prerequisite to judicial review. Pursuant to section 704 of the 
Administrative Procedure Act, 5 U.S.C. 704, a petition for review by 
the Secretary's designee of an Administrative Law Judge decision or 
ruling is a prerequisite to the seeking of judicial review of a final 
order entered pursuant to such decision or ruling.


Sec.  501.742  Secretary's designee's consideration of decisions by 
Administrative Law Judges.

    (a) Scope of review. The Secretary's designee may affirm, reverse, 
modify, set aside or remand for further proceedings, in whole or in 
part, a decision or ruling by an Administrative Law Judge and may make 
any findings or conclusions that in his or her judgment are proper and 
on the basis of the record and such additional evidence as the 
Secretary's designee may receive in his or her discretion.
    (b) Summary affirmance. The Secretary's designee may summarily 
affirm an Administrative Law Judge's decision or ruling based upon the 
petition for review and any response thereto, without further briefing, 
if he or she finds that no issue raised in the petition for review 
warrants further consideration.


Sec.  501.743  Briefs filed with the Secretary's designee.

    (a) Briefing schedule order. If review of a determination is 
mandated by judicial order or whenever the Secretary's designee reviews 
a decision or ruling, the Secretary's designee shall, unless such 
review results in summary affirmance pursuant to Sec.  501.742(b), 
issue a briefing schedule order directing the parties to file opening 
briefs and specifying particular issues, if any, as to which briefing 
should be limited or directed. Unless otherwise provided, opening 
briefs shall be filed not later than 40 days after the date of the 
briefing schedule order. Opposition briefs shall be filed not later 
than 30 days after the date opening briefs are due. Reply briefs shall 
be filed not later than 14 days after the date opposition briefs are 
due. No briefs in addition to those specified in the briefing schedule 
order may be filed without permission of the Secretary's designee. The 
briefing schedule order shall be issued not later than 21 days after 
the later of:
    (1) The last day permitted for filing a brief in opposition to a 
petition for review pursuant to Sec.  501.741(e); or
    (2) Receipt by the Secretary's designee of the mandate of a court 
with respect to a judicial remand.
    (b) Contents of briefs. Briefs shall be confined to the particular 
matters at issue. Each exception to the findings or conclusions being 
reviewed shall be stated succinctly. Exceptions shall be supported by 
citation to the relevant portions of the record, including references 
to the specific pages relied upon, and by concise argument including 
citation of such statutes, decisions and other authorities as may be 
relevant. If the exception relates to the admission or exclusion of 
evidence, the substance of the evidence admitted or excluded shall be 
set forth in the brief, in an appendix thereto, or by citation to the 
record. If the exception relates to interlocutory review, there is no 
requirement to reference pages of the transcript. Reply briefs shall be 
confined to matters in opposition briefs of other parties.
    (c) Length limitation. Opening and opposition briefs shall not 
exceed 30 pages and reply briefs shall not exceed 20 pages, exclusive 
of pages containing the table of contents, table of authorities, and 
any addendum, except with permission of the Secretary's designee.


Sec.  501.744  Record before the Secretary's designee.

    The Secretary's designee shall determine each matter on the basis 
of the record and such additional evidence as the Secretary's designee 
may receive in his or her discretion. In any case of interlocutory 
review, the Administrative Law Judge shall direct that a transcript of 
the relevant proceedings be prepared and forwarded to the Secretary's 
designee.
    (a) Contents of the record. In proceedings for final decision 
before the Secretary's designee the record shall consist of:
    (1) All items that are part of the record in accordance with Sec.  
501.739;
    (2) Any petitions for review, cross-petitions or oppositions;
    (3) All briefs, motions, submissions and other papers filed on 
appeal or review; and
    (4) Any other material of which the Secretary's designee may take 
administrative notice.
    (b) Review of documents not admitted. Any document offered in 
evidence but excluded by the Administrative Law Judge and any document 
marked for identification but not offered as an exhibit shall not be 
considered a part of the record before the Secretary's designee on 
review but shall be transmitted to the Secretary's designee if he or 
she so requests. In the event that the Secretary's designee does not 
request the document, the Administrative Law Judge shall retain the 
document not admitted into the record until the later of:
    (1) The date upon which the Secretary's designee's order becomes 
final; or
    (2) The conclusion of any judicial review of that order.


Sec.  501.745  Orders and decisions: signature, date and public 
availability.

    (a) Signature required. All orders and decisions of the 
Administrative Law Judge or Secretary's designee shall be signed.
    (b) Date of entry of orders. The date of entry of an order by the 
Administrative Law Judge or Secretary's designee shall be the date the 
order is signed. Such date shall be reflected in the caption of the 
order, or if there is no caption, in the order itself.
    (c) Public availability of orders. (1) In general, any final order 
of the Department shall be made public. Any supporting findings or 
opinions relating

[[Page 53657]]

to a final order shall be made public at such time as the final order 
is made public.
    (2) Exception. Any final order of the Administrative Law Judge or 
Secretary's designee pertaining to an application for confidential 
treatment shall only be available to the public in accordance with 
Sec.  501.725(b)(3).


Sec.  501.746  Referral to United States Department of Justice; 
administrative collection measures.

    In the event that the respondent does not pay any penalty imposed 
pursuant to this part within 30 calendar days of the mailing of the 
written notice of the imposition of the penalty, the matter may be 
referred for administrative collection measures or to the United States 
Department of Justice for appropriate action to recover the penalty in 
a civil suit in a Federal district court.


Sec.  501.747  Procedures on remand of decisions.

    Either an Administrative Law Judge or a Secretary's designee, as 
appropriate, shall reconsider any Department decision on judicial 
remand to the Department. The rules of practice contained in this 
subpart shall apply to all proceedings held on judicial remand.

PART 505--REGULATIONS PROHIBITING TRANSACTIONS INVOLVING THE 
SHIPMENT OF CERTAIN MERCHANDISE BETWEEN FOREIGN COUNTRIES

0
1. The authority for part 505 continues to read:

    Authority: 31 U.S.C. 321(b); 50 U.S.C. App. 1-44; Pub. L. 101-
410, 104 Stat. 890 (28 U.S.C. 2461 note); E.O. 9193, 7 FR 5205, 3 
CFR, 1938-1943 Comp., p. 1174; E.O. 9989, 13 FR 4891, 3 CFR, 1943-
1948 Comp., p. 748.


0
2. Section 505.30 is amended by adding the following sentences at the 
end of the section:


Sec.  505.30  Licenses

    * * * For provisions relating to licensing procedures, see part 
501, subpart E, 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.  505.50  [Amended]

0
3. Section 505.50 is amended by revising the reference ``subpart G of 
part 500'' to read ``part 501, subpart D,''.


Sec.  505.60  [Amended]

0
4. Section 505.60 is amended by revising the reference ``Sec.  500.802 
and subpart D of part 501'' to read ``part 501, subpart E,''.

PART 515--CUBAN ASSETS CONTROL REGULATIONS

0
1. The authority for part 515 continues to read:

    Authority: 18 U.S.C. 2332d; 22 U.S.C. 2370(a), 6001-6010; 31 
U.S.C. 321(b); 50 U.S.C. App. 1-44; Pub. L. 101-410, 104 Stat. 890 
(28 U.S.C. 2461 note); Pub. L. 106-387, 114 Stat. 1549; E.O. 9193, 7 
FR 5205, 3 CFR, 1938-1943 Comp., p. 1147; E.O. 9989, 13 FR 4891, 3 
CFR, 1943-1948 Comp., p.748; Proc. 3447, 27 FR 1085, 3 CFR, 1959-
1963 Comp., p. 157; E.O. 12854, 58 FR 36587, 3 CFR, 1993 Comp., p. 
614.


0
2. Section 515.501 is added to Subpart E to read as follows:


Sec.  515.501  General and specific licensing procedures.

    For provisions relating to licensing procedures, see part 501, 
subpart E, 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.

Subpart G--Penalties

0
3. Section 515.701 is revised to read as follows:


Sec.  515.701  Penalties.

    For provisions relating to penalties, see part 501, subpart D, of 
this chapter.


Sec. Sec.  515.702-515.718  [Removed]

0
4. Sections 515.702--515.718 are removed from subpart G.

Subpart H--Procedures


Sec.  515.801  [Amended]

0
5. Section 515.801 is amended by revising the reference ``subpart D of 
part 501'' to read ``part 501, subpart E,''.

PART 535--IRANIAN ASSETS CONTROL REGULATIONS

0
1. The authority for Part 535 continues to read:

    Authority: 18 U.S.C. 2332d; 28 U.S.C. 2461; 31 U.S.C. 321(b); 50 
U.S.C. 1701-1706; E.O. 12170, 44 FR 65729, 3 CFR 1979 Comp., p. 457; 
E.O. 12205, 45 FR 24099, 3 CFR 1980 Comp., p. 248; E.O. 12211, 45 FR 
26685, 3 CFR 1980 Comp., p. 253; E.O. 12276, 46 FR 7913, 3 CFR 1981 
Comp., p. 104; E.O. 12279, 46 FR 7919, 3 CFR 1981 Comp., p. 109; 
E.O. 12280, 46 FR 7921, 3 CFR 1981 Comp., p. 110; E.O. 12281, 46 FR 
7923, 3 CFR 1981 Comp., p. 110; E.O. 12282, 46 FR 7925, 3 CFR 1981 
Comp., p. 113; E.O. 12283, 46 FR 7927, 3 CFR 1981 Comp., p. 114; and 
E.O. 12294, 46 FR 14111, 3 CFR 1981 Comp., p. 139.

Subpart E--Licenses, Authorizations, and Statements of Licensing 
Policy

0
2. Section 535.501 is added to Subpart E to read as follows:


Sec.  535.501  General and specific licensing procedures.

    For provisions relating to licensing procedures, see part 501, 
subpart E, 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.

Subpart H--Procedures


Sec.  535.801  [Amended]

0
3. Section 515.801 is amended by revising the reference ``subpart D of 
part 501'' to read ``part 501, subpart E,''.

PART 536--NARCOTICS TRAFFICKING SANCTIONS REGULATIONS

0
1. The authority for part 536 is revised to read:

    Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1641, 
1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); 
E.O. 12978, 60 FR 54579, 3 CFR, 1995 Comp., p. 415; E.O. 13224, 66 
FR 49079, 3 CFR, 2001 Comp., p. 786; E.O. 13286, 68 FR 10619, March 
5, 2003.

Subpart E--Licenses, Authorizations, and Statements of Licensing 
Policy

0
2. Section 536.100 is added to subpart E to read as follows:


Sec.  536.100  Licensing procedures.

    For provisions relating to licensing procedures, see part 501, 
subpart E, 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.

Subpart H--Procedures


Sec.  536.801  [Amended]

0
3. Section 536.801 is amended by revising the reference ``subpart D of 
part 501'' to read ``part 501, subpart E,''.

PART 537--BURMESE SANCTIONS REGULATIONS

0
1. The authority for part 537 is revised to read:

    Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; sec 570, Pub. L. 104-208, 110 stat. 3009-166; Pub. L. 
108-61; E.O. 13047, 61 FR 28301, 3 CFR, Comp., p. 202; E.O. 13310, 
68 FR 44853, July 28, 2003.

[[Page 53658]]

Subpart E--Licenses, Authorizations, and Statements of Licensing 
Policy

0
2. Section 537.501 is revised to read as follows:


Sec.  537.501  General and specific licensing procedures.

    For provisions relating to licensing procedures, see part 501, 
subpart E, 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.

Subpart H--Procedures

0
3. Section 537.801 is revised to read as follows:


Sec.  537.801  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 E, of this chapter.

PART 538--SUDANESE SANCTIONS REGULATIONS

0
1. The authority for part 538 continues to read as follows:

    Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 18 U.S.C. 2339B, 
2332d; 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 106-387, 114 Stat. 
1549; E.O. 13067, 62 FR 59989, 3 CFR, 1997 Comp., p. 230.

Subpart E--Licenses, Authorizations, and Statements of Licensing 
Policy

0
2. Section 538.500 is added to subpart E to read as follows:


Sec.  538.500  Licensing procedures.

    For provisions relating to licensing procedures, see part 501, 
subpart E, 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.

Subpart H--Procedures


Sec.  538.801  [Amended]

0
3. Section 538.801 is amended by revising the reference ``subpart D of 
part 501'' to read ``part 501, subpart E,''.

PART 539--WEAPONS OF MASS DESTRUCTION TRADE CONTROL REGULATIONS

0
1. The authority for part 539 continues to read as follows:

    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, 3 CFR, 1998 Comp., 
p. 200.

Subpart E--Licenses, Authorizations, and Statements of Licensing 
Policy


Sec.  539.501  [Amended]

0
2. Section 539.501 is amended by revising the reference ``subpart D'' 
to read ``subpart E''.

Subpart H--Procedures


Sec.  539.801  [Amended]

    3. Section 539.801 is amended by revising the reference ``subpart 
D'' to read ``subpart E''.

PART 540--HIGHLY ENRICHED URANIUM (HEU) AGREEMENT ASSETS CONTROL 
REGULATIONS

0
1. The authority for part 540 continues to read as follows:

    Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); 
E.O. 13159, 65 FR 39279, 3 CFR, Comp., p. 277.

Subpart E--Licenses, Authorizations, and Statements of Licensing 
Policy

    2. Section 540.500 is added to subpart E to read as follows:


Sec.  540.500  Licensing procedures.

    For provisions relating to licensing procedures, see part 501, 
subpart E, 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.

Subpart H--Procedures


Sec.  540.801  [Amended]

0
3. Section 540.801 is amended by revising the reference ``subpart D'' 
to read ``subpart E''.

PART 545--TALIBAN (AFGHANISTAN) SANCTIONS REGULATIONS

0
1. The authority for part 545 continues to read as follows:

    Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); 
E.O. 13129, 64 FR 36759, 3 CFR, 1999 Comp., p. 200.

Subpart E--Licenses, Authorizations, and Statements of Licensing 
Policy

0
2. Section 545.500 is added to subpart E to read as follows:


Sec.  545.500  Licensing procedures.

    For provisions relating to licensing procedures, see part 501, 
subpart E, 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.

Subpart H--Procedures


Sec.  545.801  [Amended]

0
3. Section 545.801 is amended by revising the reference ``subpart D'' 
to read ``subpart E''.

PART 550--LIBYAN SANCTIONS REGULATIONS

0
1. The authority for part 550 continues to read as follows:

    Authority: 3 U.S.C. 301; 18 U.S.C. 2339B, 2332d; 22 U.S.C. 287c, 
2349aa-8 and 2349aa-9; 31 U.S.C. 321(b0; 49 U.S.C. 40106(b); 50 
U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 
U.S.C. 2461 note); Pub. L. 106-387, 114 Stat. 1549; E.O. 12543, 51 
FR 875, 3 CFR, 1986 Comp., p. 181; E.O. 12544, 51 FR 1235, 3 CFR, 
1986 Comp., p. 183; E.O. 12801, 57 FR 14319, 3 CFR, 1992 Comp., p. 
294.

Subpart E--Licenses, Authorizations, and Statements of Licensing 
Policy

0
2. Section 550.500 is added to subpart E to read as follows:


Sec.  550.500  Licensing procedures.

    For provisions relating to licensing procedures, see part 501, 
subpart E, 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.

Subpart H--Procedures


Sec.  550.801  [Amended]

0
3. Section 550.801 is amended by revising the reference ``subpart D of 
part 501'' to read ``part 501, subpart E,''.

PART 560--IRANIAN TRANSACTIONS REGULATIONS

0
1. The authority for part 560 continues to read as follows:

    Authority: 3 U.S.C. 301; 18 U.S.C. 2339B, 2332d; 22 U.S.C. 
2349aa-9; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 
101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 106-387, 114 
Stat. 1549; E.O. 12613, 52 FR 41940, 3 CFR, 1987 Comp., p. 256; E.O. 
12957, 60 FR 14615, 3 CFR, 1995 Comp., p. 332; E.O. 12959, 60 FR 
24757, 3 CFR, 1995 Comp., p. 356; E.O. 13059, 62 FR 44531, 3 CFR, 
1997 Comp., p. 217.

[[Page 53659]]

Subpart E--Licenses, Authorizations, and Statements of Licensing 
Policy

0
2. Section 560.500 is added directly under the heading of subpart E to 
read as follows:


Sec.  560.500  Licensing procedures.

    For provisions relating to licensing procedures, see part 501, 
subpart E, 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.

Subpart H--Procedures


Sec.  560.801  [Amended]

0
3. Section 560.801 is amended by revising the reference ``subpart D of 
part 501'' to read ``part 501, subpart E,''.

PART 575--IRAQI SANCTIONS REGULATIONS

0
1. The authority for part 575 is revised to read as follows:

    Authority: 3 U.S.C. 301; 18 U.S.C. 2332d; 22 U.S.C. 287c; Pub. 
L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); 31 U.S.C. 321(b); 
50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-513, 104 Stat. 2047-2055 
(50 U.S.C. 1701 note); E.O. 12722, 55 FR 31803, 3 CFR, 1990 Comp., 
p. 294; E.O. 12724, 55 FR 33089, 3 CFR, 1990 Comp., p. 297; E.O. 
12817, 57 FR 48433, 3 CFR, 1992 Comp., p. 317; E.O. 13290, 68 FR 
14307, March 20, 2003.

Subpart E--Licenses, Authorizations, and Statements of Licensing 
Policy

0
2. Section 575.500 is added directly under the heading of subpart E to 
read as follow:


Sec.  575.500  Licensing procedures.

    For provisions relating to licensing procedures, see part 501, 
subpart E, 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.

Subpart H--Procedures


Sec.  575.801  [Amended]

0
3. Section 575.801 is amended by revising the reference ``subpart D of 
part 501'' to read ``part 501, subpart E,''.

PART 585--FEDERAL REPUBLIC OF YUGOSLAVIA (SERBIA AND MONTENEGRO) 
AND BOSNIAN SERB-CONTROLLED AREAS OF THE REPUBLIC OF BOSNIA AND 
HERZEGOVINA SANCTIONS REGULATIONS

0
1. The authority for part 585 is revised to read as follows:

    Authority: 3 U.S.C. 301; 22 U.S.C. 287c; 31 U.S.C. 321(b); 49 
U.S.C. 40106; 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 
Stat. 890 (28 U.S.C. 2461 note); E.O. 12808, 57 FR 23299, 3 CFR, 
1992 Comp., p. 305; E.O. 12810, 57 FR 24347, 3 CFR, 1992 Comp., p. 
307; E.O. 12831, 58 FR 5253, 3 CFR, 1993 Comp., p. 576; E.O. 12846, 
58 FR 25771, 3 CFR, 1993 Comp., p. 599; E.O. 12934, 59 FR 54117, 3 
CFR, 1994 Comp., p. 930; E.O. 13304, 68 FR 32315, May 29, 2003.

Subpart E--Licenses, Authorizations, and Statements of Licensing 
Policy

0
2. Section 585.500 is added directly under the heading of subpart E to 
read as follows:


Sec.  585.500  Licensing procedures.

    For provisions relating to licensing procedures, see part 501, 
subpart E, 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.

Subpart H--Procedures


Sec.  585.801  [Amended]

0
3. Section 585.801 is amended by revising the reference ``subpart D of 
part 501'' to read ``part 501, subpart E,''.

PART 586--FEDERAL REPUBLIC OF YUGOSLAVIA (SERBIA & MONTENEGRO) 
KOSOVO SANCTIONS REGULATIONS

0
1. The authority for part 586 is revised to read as follows:

    Authority:  3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; E.O. 13088, 63 FR 32109, 3 CFR, 1998 Comp., p. 191; E.O. 
13121, 64 FR 24021, 3 CFR, 1999 Comp., p. 176; E.O. 13192, 66 FR 
7379, 3 CFR, 3 CFR, 2002 Comp., p. 733; E.O. 13304, 68 FR 32315, May 
29, 2003.

Subpart E--Licenses, Authorizations, and Statements of Licensing 
Policy


Sec.  586.501  [Amended]

0
2. Section 586.501 is amended by revising the reference ``subpart D of 
part 501'' to read ``part 501, subpart E,''.

Subpart H--Procedures


Sec.  586.801  [Amended]

0
3. Section 586.801 is amended by revising the reference ``subpart D of 
part 501'' to read ``part 501, subpart E,''.

PART 587--FEDERAL REPUBLIC OF YUGOSLAVIA (SERBIA AND MONTENEGRO) 
MILOSEVIC SANCTIONS REGULATIONS

0
1. The authority for part 587 is revised to read as follows:

    Authority: 3 U.S.C. 301; 22 U.S.C. 287c; 31 U.S.C. 321(b); 50 
U.S.C. 1601-1651, 1701-1706; E.O. 13088, 63 FR 32109, 3 CFR, 1998 
Comp., p. 191; E.O. 13121, 64 FR 24021, 3 CFR, 1999 Comp., p. 176; 
E.O. 13192, 66 FR 7379, 3 CFR, 2002 Comp., p. 733; E.O. 13304, 68 FR 
32315, May 29, 2003.

Subpart E--Licenses, Authorizations, and Statements of Licensing 
Policy


Sec.  587.501  [Amended]

0
2. Section 587.501 is amended by revising the reference ``subpart D'' 
to read ``subpart E,''.

Subpart H--Procedures


Sec.  587.801  [Amended]

0
3. Section 587.801 is amended by revising the reference ``subpart D'' 
to read ``subpart E''.

PART 588--WESTERN BALKANS STABILIZATION REGULATIONS

0
1. The authority for part 588 is revised to read as follows:

    Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; E.O. 13219, 66 FR 34777, 3 CFR, 2002 Comp., p. 778; E.O. 
13304, 68 FR 32315, May 29, 2003.

Subpart E--Licenses, Authorizations, and Statements of Licensing 
Policy


Sec.  588.501  [Amended]

0
2. Section 588.501 is amended by revising the reference ``subpart D'' 
to read ``subpart E''.

Subpart H--Procedures


Sec.  588.801  [Amended]

0
3. Section 588.801 is amended by revising the reference ``subpart D'' 
to read ``subpart E''.

PART 590--ANGOLA (UNITA) SANCTIONS REGULATIONS

0
1. The authority for part 590 is revised to read:

    Authority: 3 U.S.C. 301; 22 U.S.C. 287c; 31 U.S.C. 321(b); 50 
U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 
U.S.C. 2461 note); E.O. 12865, 58 FR 51005, 3 CFR, 1993 Comp., p. 
636; E.O. 13069, 62 FR 65989, 3 CFR, 1997 Comp., p. 232; E.O. 13098, 
63 FR 44771, 3 CFR, 1998 Comp., p. 206; E.O. 13298, 69 FR 24857, May 
6, 2003.

Subpart E--Licenses, Authorizations, and Statements of Licensing 
Policy


Sec.  590.501  [Amended]

0
2. Section 590.501 is amended by revising the reference ``subpart D'' 
to read ``subpart E,''.

[[Page 53660]]

Subpart H--Procedures


Sec.  590.801  [Amended]

0
3. Section 590.801 is amended by revising the reference ``subpart D'' 
to read ``subpart E,''.

PART 591--ROUGH DIAMONDS (SIERRA LEONE & LIBERIA) SANCTIONS 
REGULATIONS

0
1. The authority for part 591 is revised to read as follows:

    Authority: 3 U.S.C. 301; 22 U.S.C. 287c; 31 U.S.C. 321(b); 50 
U.S.C. 1601-1641, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 
U.S.C. 2461 note); E.O. 13194, 66 FR 7389, 3 CFR, 2001 Comp., p.741; 
E.O. 13213, 66 FR 28829, 3 CFR, 2001 Comp., p.770; E.O. 13312, 68 FR 
147, July 29, 2003.

Subpart E--Licenses, Authorizations, and Statements of Licensing 
Policy


Sec.  591.501  [Amended]

0
2. Section 591.501 is amended by revising the reference ``subpart D'' 
to read ``subpart E''.

Subpart H--Procedures


Sec.  591.801  [Amended]

0
3. Section 591.801 is amended by revising the reference ``subpart D'' 
to read ``subpart E''.

PART 594--GLOBAL TERRORISM SANCTIONS REGULATIONS

0
1. The authority for part 594 is revised to read as follows:

    Authority: 3 U.S.C. 301; 22 U.S.C. 287c; 31 U.S.C. 321(b); 50 
U.S.C. 1601-1651, 1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 
U.S.C. 2461 note); E.O. 13224, 66 FR 49079, September 25, 2001; E.O. 
13268, 67 FR 44751, July 3, 2002; 3 CFR, 2002 Comp., p. 240; E.O. 
13284, 64 FR 4075, January 28, 2003.

Subpart E--Licenses, Authorizations and Statements of Licensing 
Policy

0
2. Section 594.501 is revised to read as follows:


Sec.  594.501  General and specific licensing procedures.

    For provisions relating to licensing procedures, see part 501, 
subpart E, 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.

Subpart H--Procedures

0
3. Section 594.801 is revised to read as follows:


Sec.  594.801  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 E, of this chapter.

PART 595--TERRORISM SANCTIONS REGULATIONS

0
1. The authority for part 595 continues to read as follows:

    Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); 
E.O. 12947, 60 FR 5079, 3 CFR, 1995 Comp., p. 319; E.O. 13224, 66 FR 
49079, September 25, 2001.

Subpart E--Licenses, Authorizations, and Statements of Licensing 
Policy

0
2. Section 595.500 is added directly under the heading of subpart E to 
read as follows:


Sec.  595.500  Licensing procedures.

    For provisions relating to licensing procedures, see part 501, 
subpart E, 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.

Subpart H--Procedures


Sec.  595.801  [Amended]

0
3. Section 595.801 is amended by revising the reference ``subpart D of 
part 501'' to read ``part 501, subpart E,''.

PART 596--TERRORISM LIST GOVERNMENTS SANCTIONS REGULATIONS

0
1. The authority for part 596 continues to read as follows:

    Authority: 18 U.S.C. 2332d; 31 U.S.C. 321(b).

Subpart E--Licenses, Authorizations, and Statements of Licensing 
Policy

0
2. Section 596.500 is added directly under the heading of subpart E to 
read as follows:


Sec.  596.500  Licensing procedures.

    For provisions relating to licensing procedures, see part 501, 
subpart E, 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.

Subpart H--Procedures


Sec.  596.801  [Amended]

0
3. Section 596.801 is amended by revising the reference ``subpart D of 
part 501'' to read ``part 501, subpart E,''.

PART 597--FOREIGN TERRORIST ORGANIZATION SANCTIONS REGULATIONS

0
1. The authority for part 597 is revised to read:

    Authority: 31 U.S.C. 321(b); Pub. L. 101-410, 104 Stat. 890 (28 
U.S.C. 2461 note); Pub. L. 104-132, 110 Stat. 1214, 1248-53 (8 
U.S.C. 1189, 18 U.S.C. 2339B).

Subpart E--Licenses, Authorizations, and Statements of Licensing 
Policy

0
2. Section 597.500 is added directly under the heading of subpart E to 
read as follow:


Sec.  597.500  Licensing procedures.

    For provisions relating to licensing procedures, see part 501, 
subpart E, 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.

Subpart H--Procedures


Sec.  597.801  [Amended]

0
3. Section 597.801 is amended by revising the reference ``subpart D of 
part 501'' to read ``part 501, subpart E,''.

PART 598--FOREIGN NARCOTICS KINGPIN SANCTIONS REGULATIONS

Subpart E--Licenses, Authorizations, and Statements of Licensing 
Policy

0
1. The authority for part 598 continues to read:

    Authority: 3 U.S.C. 301; 21 U.S.C. 1901-1908; 31 U.S.C. 321(b); 
Pub. L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note).


Sec.  598.501  [Amended]

0
2. Section 598.501 is amended by revising the reference ``subpart D'' 
to read ``subpart E,''.

Subpart H--Procedures


Sec.  598.801  [Amended]

0
3. Section 598.801 is amended by revising the reference ``subpart D'' 
to read ``subpart E''.


[[Page 53661]]


    Dated: August 29, 2003.
R. Richard Newcomb,
Director, Office of Foreign Assets Control.
    Approved: August 29, 2003.
Juan Zarate,
Deputy Assistant Secretary (Terrorist Financing and Financial Crimes), 
Department of the Treasury.
[FR Doc. 03-22968 Filed 9-5-03; 4:30 pm]
BILLING CODE 4810-25-P