(3) Any technical data, as that term is defined in section 500.543, except to the extent authorized by that section. (d) [Deleted]

(e) This section does not authorize the supply of petroleum products to any vessel bound to or from North Korea, North Viet Nam, or Cuba.

(f) This section does not authorize any transaction involving North Korea or North Viet Nam or their nationals, or merchandise the country of origin of which is North Korea or North Viet Nam. [36 F.R. 8584, May 8, 1971]

§ 500.543 Technical data.

(a) As used in this section and in § 500.541, the term "technical data" means technical data as defined in § 379.1 of Part 379 of the Export Control Regulations of the Department of Commerce (15 CFR Part 379).

(b) Technical data of United States origin are authorized to be exported to mainland China if their export or reexport to that destination has been licensed or otherwise authorized by the Office of Export Control, Department of Commerce, pursuant to Part 379 of the Export Control Regulations (15 CFR Part 379).

(c) Technical data not of United States origin are authorized to be exported to mainland China by persons specified in § 500.541 (a) if:

(1) Similar technical data of United States origin are authorized to be exported to any destination under § 379.3 of the Export Control Regulations (15 CFR 379.3); or

(2) The technical data are in such forms as manuals, instruction sheets, or blueprints, provided they are:

(i) Sent as part of a transaction involving, and directly related to, a commodity authorized by $ 500.541 to be exported to mainland China;

(ii) Sent no later than 1 year following the shipment of the commodity to which the technical data are related;

(iii) of a type delivered with the commodity in accordance with established business practice;

(iv) Necessary to the assembly, installation, maintenance, repair, or operation of the commodity; and,

(v) Not related to the production, manufacture, or construction of the commodity; or

(3) The technical data support a prospective or actual quotation, bid, or

offer to sell, lease, or otherwise supply any commodity, Provided, That:

(i) The commodity is authorized by § 500.541 to be exported to mainland China;

(ii) The technical data are of a type customarily transmitted with a prospective or actual quotation, bid, or offer (in accordance with established business practice); and

(iii) The export will not disclose the detailed design, production, or manufacture, or the means of reconstruction, of either the quoted item or its product. [34 F.R. 20191, Dec. 24, 1969] § 500.544

[Reserved]

§ 500.545 Certain transactions incident to travel to and in mainland China. (a) All persons bearing a U.S. passport valid for travel in mainland China are authorized to engage in the following transactions:

(1) All transactions ordinarily incident to travel to and from mainland China.

(2) All transactions ordinarily incident to travel in mainland China, including living expenses and the acquisition in mainland China of goods for personal consumption therein; and,

(3) The purchase of goods for importation into the United States to the extent authorized by § 500.544.

(b) Persons who are in mainland China for the purpose of gathering news for dissemination in the United States are also authorized to acquire for transmission to the United States such photographs, films, magazines, newspapers, and similar publications as are directly related to their news-gathering activities. Customs transactions incident to the importation of such merchandise are authorized notwithstanding the provisions of § 500.808.

(c) Persons who travel in mainland China with a passport validated for such travel are licensed as unblocked nationals provided that this license does not authorize any transaction prohibited by any other section of this part and not authorized by this section.

[34 F.R. 20192, Dec. 24, 1969]

§ 500.546 Current transactions with China and its nationals authorized. (a) Except as provided in paragraph (b) of this section, all transactions with China or its nationals are hereby licensed.

(b) This section does not authorize:

(1) Any transaction prohibited by § 500.201 involving property subject to the jurisdiction of the United States as of May 6, 1971 in which China or any national thereof, at any time on or since December 17, 1950 had any interest whatsoever nor any transaction involving any income from such property accruing on or after May 6, 1971.

(2) Any transaction prohibited by § 500.201 and excepted from section 500.541 by subparagraphs (c) and (e) thereof.

(3) Any transaction prohibited by section 500.204.

(4) Any transaction involving an interest of North Korea or North Viet Nam or nationals thereof. [36 F.R. 8584, May 8, 1971]

§ 500.547 Transactions involving mainland Chinese merchandise authorized. (a) Except as provided in paragraphs (b) and (c) of this section, all transactions prohibited by § 500.204 are licensed. (b) This section does not authorize: (1) Any transaction entered into prior to June 10, 1971; or,

(2) Any transaction involving merchandise, the country of origin of which is North Korea or North Viet-Nam.

(c) Customs transactions incident to the importation of merchandise being imported pursuant to this section are authorized notwithstanding the provisions of § 500.808.

[36 F.R. 11441, June 12, 1971]

§ 500.601

Subpart F-Reports
Records.

Every person engaging in any transaction subject to the provisions of this chapter shall keep a full and accurate record of each such transaction engaged in by him, regardless of whether such transaction is effected pursuant to license or otherwise, and such record shall be available for examination for at least two years after the date of such transaction.

[24 F.R. 1984, Mar. 18, 1959]

§ 500.602 Reports to be furnished on demand.

Every person is required to furnish under oath, in the form of reports or otherwise, from time to time and at any time as may be required by the Secretary of the Treasury or any person acting under his direction or authorization complete information relative to any transaction subject to the provisions of

this chapter or relative to any property in which any foreign country or any national thereof has any interest of any nature whatsoever, direct or indirect. The Secretary of the Treasury or any person acting under his direction may require that such reports include the production of any books of account, contracts, letters or other papers, connected with any such transaction or property, in the custody or control of the persons required to make such reports. Reports with respect to transactions may be required either before or after such transactions are completed. The Secretary of the Treasury may, through any person or agency, investigate any such transaction or property or any violation of the provisions of this chapter regardless of whether any report has been required or filed in connection therewith.

§ 500.610 Reports on Form TFR-610.

(a) Requirement for reports. Reports on Form TFR-610 are hereby required to be filed on or before October 1, 1970, in the manner prescribed herein with respect to all property subject to the jurisdiction of the United States on December 18, 1950, in which on that date China or a Chinese national had any direct or indirect interest and which was reported on Form TFR-603. In addition, reports on Form TFR-610 are required to be filed with respect to all property subject to the jurisdiction of the United States on July 1, 1970, in which on that date China or a Chinese national had any direct or indirect interest, except any such national who is unblocked. (See subparagraph (3) of this paragraph for exemptions.)

(1) Who must report. (i) Every person (or his successor) in the United States who is either:

(a) A person who filed a report on Form TFR-603 with respect to any property he held, or had in his custody, control, or possession, directly or indirectly, in trust or otherwise, in which there was as of December 18, 1950, any direct or indirect interest of China or a Chinese national; or

(b) A person who held, or had in his custody, control, or possession, directly or indirectly, in trust or otherwise, any property on July 1, 1970, in which there was as of that date any direct or indirect interest of China or a Chinese national; or,

(c) A business or nonbusiness entity in the United States with respect to any financial interest in such entity of China

or a Chinese national which was reported on Form TFR-603 or which interest existed on July 1, 1970; or,

(d) An agent or representative in the United States of China or a Chinese national, who reported his principal's property on Form TFR-603 or who has any information with respect to property subject to the jurisdiction of the United States on July 1, 1970, in which his Chinese principal had any interest on that date.

(2) Primary responsibility for reporting. (i) Primary responsibility for reporting property blocked as of July 1, 1970, is on the person having actual custody thereof, with the following exceptions: Primary responsibility for reporting any trust is on the trustee; for any estate on the executor or administrator; for any safe deposit box on the lessee.

(ii) No person is excused from filing Form TFR-610 by reason of the fact that another person has submitted a report with regard to the same property unless he has actual knowledge the other person has filed a report with respect to the same interests in the property of the national which is as full and complete as that which such person would otherwise be required to file. (iii) A report on Form TFR-610 must be filed by every person or his successor who reported property on Form TFR603, whether or not he held the property on July 1, 1970.

(3) Property which is not required to be reported. (i) Property of an unblocked Chinese national, except property which was reported on Form TFR-603.

(ii) Patents, trademarks, copyrights, and inventions, but this exemption shall not constitute a waiver of any reporting requirement with respect to royalties due and unpaid.

(4) Separation of reports for different nationals. (i) A separate report shall be made with respect to China and each Chinese national having any interest in any property to be reported but all items of property of each person shall be included in one report.

(ii) If it is known or there is reasonable cause to believe that a Chinese national other than the Chinese national in whose name any property was carried had an adverse claim upon the property, the property must be shown on a separate report for the national in whose name the property was carried and for each such adverse claimant.

(5) Obtaining Form TFR-610. Forms TFR-610 with reporting instructions are being mailed to all persons who reported on Form TFR-603 in January 1951. Other persons required to report or otherwise interested in obtaining Form TFR-610 may do so by applying to Unit 610, Office of Foreign Assets Control, Treasury Department, Washington, D.C. 20220, or to the Federal Reserve Bank of New York, 33 Liberty Street, New York, N.Y. 10045, for copies of Form TFR-610 and the reporting instructions.

(6) Filing Form TFR-610. Reports on Form TFR-610 shall be prepared in duplicate. On or before October 1, 1970, both copies shall be sent in a set to Office of Foreign Assets Control, Treasury Department, Washington, D.C. 20220.

(7) Confidentiality of reports. Reports filed on Form TFR-610 are regarded as privileged and confidential.

[35 F.R. 13124, Aug. 18, 1970]

Subpart G-Penalties
Penalties.

§ 500.701

(a) Attention is directed to section 5 (b) of the Trading With the Enemy Act, as amended, which provides in part:

Whoever willfully violates any of the provisions of this subdivision or of any license, order, rule or regulation issued thereunder, shall, upon conviction, be fined not more than $10,000 or, if a natural person, may be imprisoned for not more than ten years, or both; and any officer, director, or agent of any corporation who knowingly participates in such violation may be punished by a like fine, imprisonment, or both. As used in this subdivision the term "person" means individual, partnership, association,

corporation.

an or

This section of the Trading With the Enemy Act, as amended, is applicable to violations of any provision of this chapter and to violations of the provisions of any license, ruling, regulation, order, direction or instruction issued by or pursuant to the direction or authorization of the Secretary of the Treasury pursuant to this chapter or otherwise under section 5(b) of the Trading With the Enemy Act, as amended.

(b) Attention is also directed to 18 U.S.C. 1001 which provides:

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

(a) General licenses. General licenses have been issued authorizing under appropriate terms and conditions, many types of transactions which are subject to the prohibitions contained in Subpart B. All such licenses are set forth in Subpart E. It is the policy of the Office of Foreign Assets Control not to grant applications for specific licenses authorizing transactions to which the provisions of an outstanding general license are applicable. Persons availing themselves of certain general licenses are required to file reports and statements in the form and in accordance with the instructions specified in the licenses.

(b) Specific licenses-(1) General course of procedure. Transactions subject to the prohibitions contained in Subpart B of this part which are not authorized by general license may be effected only under specific license. The specific licensing activities of the Office of Foreign Assets Control are performed by the central organization and the Federal Reserve Bank of New York. When an unusual problem is presented, the proposed action is cleared with the Director of the Office of Foreign Assets Control or such person as he may designate.

(2) Applications for specific licenses. Applications for specific licenses to engage in any transaction prohibited by or pursuant to this chapter are to be filed in duplicate on Form TFAC-1 with the Federal Reserve Bank of New York. Any person having an interest in a transaction or proposed transaction may file an application for a license authorizing the effecting of such transaction, and there is no requirement that any other person having an interest in such transactions shall or should join in making or filing such application.

(3) Information to be supplied. Applicants must supply all information specified by the respective forms and instructions. Such documents as may be relevant shall be attached to each application as a part of such application except that documents previously filed with the Office of Foreign Assets Control may, where appropriate, be incorporated by

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reference. Applicants may be required to furnish such further information as is deemed necessary to a proper determination by the Control. If an applicant or other party in interest desires to present additional information or discuss or argue the application, he may do so at any time before or after the decision. Arrangements for oral presentation should be made with the Control.

(4) Effect of denial. The denial of a license does not preclude the reopening of an application of the filing of a further application. The applicant or any other party in interest may at any time request explanation of the reasons for a denial by correspondence or personal interview.

(5) Reports under specific licenses. As a condition upon the issuance of any license, the licensee may be required to file reports with respect to the transaction covered by the license, in such form and at such times and places as may be prescribed in the license or otherwise.

(6) Issuance of license. Licenses will be issued by the Office of Foreign Assets Control acting on behalf of the Secretary of the Treasury or by the Federal Reserve Bank of New York, acting in accordance with such regulations, rulings and instructions as the Secretary of the Treasury or the Office of Foreign Assets Control may from time to time prescribe, in such cases or classes of cases as the Secretary of the Treasury or the Office of Foreign Assets Control may determine, or licenses may be issued by the Secretary of the Treasury acting directly or through any person, agency, or instrumentality designated by him.

§ 500.802 Unblocking.

Any interested person desiring the unblocking of accounts or other property on the ground that no person having an interest in the property is a designated national may file such an application. Such application shall be filed in the manner provided in § 500.801(b) and shall contain full information in support of the administrative action requested.

The applicant is entitled to be heard on the application. If the applicant desires a hearing arrangements should be made with Foreign Assets Control. § 500.803 Decision.

The Office of Foreign Assets Control or the Federal Reserve Bank of New York will advise each applicant of the decision respecting applications filed by him. The

The provisions of this chapter and any rulings, licenses, authorizations, instructions, orders, or forms issued thereunder may be amended, modified, or revoked at any time.

§ 500.806 Rule making.

All rules and other public documents are issued by the Secretary of the Treasury upon recommendation of the Director of the Office of Foreign Assets Control. Except to the extent that there is involved any military, naval, or foreign affairs function of the United States or any matter relating to agency management or personnel or to public property, loans, grants, benefits, or contracts and except when interpretative rules, general statement of policy, or rules of agency organization, practice, or procedure are involved or when notice and public procedure are impracticable, unnecessary or contrary to the public interest, interested persons will be afforded an opportunity to participate in rule making through submission of written data, views, or argument, with oral presentation in the discretion of the Director. In general, rule making by the Office of Foreign Assets Control involves foreign affairs functions of the United States. Wherever possible, however, it is the practice to hold informal consultations with interested groups or persons before the issuance of any rule or other public document.

Any interested person may petition the Director of the Office of Foreign Assets Control in writing for the issuance, amendment or repeal of any rule.

§ 500.807 Delegation by the Secretary of the Treasury.

Any action which the Secretary of the Treasury is authorized to take pursuant to the Trading With the Enemy Act may be taken by any person to whom the Secretary of the Treasury has delegated authority so to act.

§ 500.808 Customs procedures; merchandise specified in § 500.204.

(a) With respect to merchandise specified in § 500.204, whether or not such merchandise has been imported into the United States, directors of customs shall not accept or allow any:

(1) Entry for consumption (including any appraisement entry, any entry of goods imported in the mails, regardless of value, and any other informal entries);

(2) Entry for immediate exportation; (3) Entry for transportation and exportation;

(4) Withdrawal from warehouse; (5) Transfer or withdrawal from a foreign-trade zone; or

(6) Manipulation or manufacture in a warehouse or in a foreign-trade zone, until either:

(i) A specific license pursuant to this chapter is presented,

(ii) Instructions from the Foreign Assets Control, either directly or through the Federal Reserve Bank of New York, authorizing the transaction are received,

or

(iii) The original of an appropriate certificate of origin as defined in § 500.536(d) is presented.

(b) Whenever a specific license is presented to a director of customs in accordance with this section, one additional legible copy of the entry, withdrawal or other appropriate document with respect to the merchandise involved shall be filed with the director of customs at the port where the transaction is to take place. Each copy of any such entry, withdrawal or other appropriate document, including the additional copy, shall bear plainly on its face the number of the license pursuant to which it is filed.