§ 54.7

General provisions affecting export licenses.2

(a) At the time any license to export gold is issued, the Office of Domestic Gold and Silver Operations or Federal Reserve bank issuing the same, shall transmit a copy thereof to the collector of customs at the port of export designated in the license or, if the port of export is not within the customs territory of the United States, to the government officer at such port charged with the enforcement of laws relating to the exportation of merchandise from the United States. No collector of customs or other government officer charged with the enforcement of laws relating to the exportation of merchandise from the United States shall permit the export or transportation from the States of the United States to the Possessions of the United States, to Puerto Rico, to the Canal Zone, or to places not subject to the jurisdiction of the United States or the export or transportation from the Possessions of the United States, from Puerto Rico or from the Canal Zone to places not subject to the jurisdiction of the United States of gold in any form except upon surrender of a license to export, a copy of which has been received by him from the agency issuing the same except that licenses on Form TGL-15 (general) covering multiple shipments during a six-months' period are retained by the licensees until the expiration of such period when they are returned to the Director, Office of Domestic Gold and Silver Operations: Provided, however, That the export or transportation from the States of the United States, the Possessions of the United States, Puerto Rico and the Canal Zone of fabricated gold may be permitted pursuant to § 54.25 (b) (2) and the export or transportation from the States of the United States, the Possessions of the United States, Puerto Rico and the Canal Zone of gold imported for reexport may be permitted pursuant to §§ 54.32 and 54.33:

'The regulations in this part shall not be construed as relieving any person from the obligation of compliance with the regulations of the Bureau of International Commerce (formerly the Office of International Trade) (15 CFR Parts 363 to 399), the Bureau of Customs (19 CFR Ch. I) or other laws or regulations relating to the importation or exportation of merchandise, where applicable to imports or exports of gold, or articles containing gold.

And provided further, That gold held by the Federal Reserve banks under §§ 54.28 to 54.30, may be exported or transported for the purposes of such sections without a license. The collector of customs or other government officer to whom a license to export is surrendered shall cancel such license and return it to the Director, Office of Domestic Gold and Silver Operations or the Federal Reserve bank which issued the same. In the event that the shipment is to be made by mail, a copy of the export license shall be sent by the agency issuing the same to the postmaster of the post office designated in the application, who will act under the instructions of the Postmaster General in regard thereto.

(b) This section shall not apply to exports of gold authorized under § 54.25 (b). [28 F.R. 8289, Aug. 13, 1963, as amended at 33 F.R. 4677, Mar. 19, 1968]

§ 54.8 General provisions affecting import licenses.

No gold in any form imported into the United States shall be permitted to enter until the person importing such gold shall have satisfied the collector of customs at the port of entry that he holds a license authorizing him to import such gold or that such gold may be imported without a license under the provisions of §§ 54.12 to 54.21, inclusive, or §§ 54.28 to 54.30, inclusive. Postmasters receiving packages containing gold will deliver such gold subject to the instructions of the Postmaster General.

Any form, the use of which is prescribed in this part, may be obtained at, or on written request to, any United States mint or assay office, or the Under Secretary of the Treasury for Monetary Affairs or his delegate, Treasury Department, Washington, D.C. 20220.

§ 54.10 Representations by licensees.

Licensees may include in public and private representations or statements the clause "licensed on form TGL__. (here inserting the number of the form of license held by the licensee) pursuant to the regulations issued by the Secretary of the Treasury," but any representation or statement which might induce the belief that the licensee is acting or is especially privileged to act on behalf of or for the United States, or is purchasing, treating, or selling gold

for the United States, or in any way dealing in gold for the purpose of carrying out any policy of the United States, shall be a violation of the conditions of the license.

(a) Business names and representations generally. No person doing business under a name which is designed or is likely to induce the belief that gold is being purchased, treated, or sold on behalf of the United States, or any agency thereof, or for the purpose of carrying out any policy of the United States, or making representations or statements which might induce the belief that such person is acting or is especially privileged to act on behalf of or for the United States, or is purchasing, treating, or selling gold for the United States, or in any way dealing in gold for the purpose of carrying out any policy of the United States, may acquire, hold, transport, melt, or treat, import, export or earmark any gold under authority of §§ 54.12 to 54.20, inclusive, or §§ 54.21 to 54.27, inclusive. § 54.11

Civil and criminal penalties.

(a) Civil penalties. Attention is directed to section 4 of the Gold Reserve Act of 1934, which provides:

Any gold withheld, acquired, transported, melted or treated, imported, exported, or earmarked or held in custody, in violation of this Act or of any regulations issued hereunder, or licenses issued pursuant thereto, shall be forfeited to the United States, and may be seized and condemned by like proceedings as those provided by law for the forfeiture, seizure, and condemnation of property imported into the United States contrary to law; and in addition any person failing to comply with the provisions of this Act or of any such regulations or licenses, shall be subject to a penalty equal to twice the value of the gold in respect of which such failure occurred (31 U.S.C. 443).

(b) Criminal punishment. Attention is also directed to (1) section 5(b) of the act of October 6, 1917, 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 an individual, partnership, association, or corporation (12 U.S.C. 95a (3)).

This section of the act of October 6, 1917, as amended, is applicable to violations of any provisions of this part and to violations of the provisions of any license, ruling, regulation, order, direction, or instructions issued by or pursuant to the direction or authorization of the Secretary of the Treasury pursuant to the regulations in this part or otherwise under section 5(b) of the act of October 6, 1917, as amended.

(2) Section 1001 of the United States Criminal Code, which provides:

Whoever, in any matter within the jurisdiction of any department or agency of the United States knowingly and wilfully 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 not more than $10,000 or imprisoned not more than five years, or both, (18 U.S.C. 1001).

Subpart B-Conditions Under Which Gold May Be Acquired and Held, Transported, Melted or Treated, Imported, Exported or Earmarked § 54.12 Conditions under which gold may be acquired, held, melted, etc.

Gold in any form may be acquired, held, transported, melted or treated, imported, exported, or earmarked only to the extent permitted by and subject to the conditions prescribed in the regulations in this part or licenses issued thereunder. Nothing contained in the regulations in this part nor in licenses issued thereunder authorizes the acquisition, sale, holding, importation, or exportation of any present or future interest, direct or indirect, in gold in any form for speculative purposes, and such actions are prohibited.

[19 F.R. 4309, July 14, 1954, as amended at 26 F.R. 9551, Oct. 10, 1961; 36 F.R. 13786, July 24, 1971]

§ 54.13 Transporting or holding gold in safekeeping.

(a) Gold may be transported from the States of the United States to the possessions of the United States, to Puerto Rico and to the Canal Zone only as authorized by §§ 54.25, 54.32, 54.33 or 54.34 or licenses issued pursuant thereto.

(b) Carriers are authorized to transport gold for persons who are either licensed or who are otherwise permitted

by the regulations in this part to hold and transport gold.

(c) Banks and other persons are authorized to provide facilities for the safekeeping of gold lawfully held pursuant to a license issued under this part or otherwise permitted to be held by the regulations in this part.

[33 F.R. 5794, Apr. 16, 1968 and 28 F.R. 8290, Aug. 13, 1963, as amended at 36 F.R. 13786, July 24, 1971]

§ 54.14 Gold situated outside of the United States.

(a) Gold in any form situated outside of the United States may be acquired, held, transported, melted or treated, or earmarked by or on behalf of persons subject to the jurisdiction of the United States only to the extent permitted by licenses relating to the legitimate and customary use of gold in industry, profession, or art issued under § 54.25: Provided, however, The provisions of §§ 54.16, 54.17, and 54.19, relating to fabricated gold, metals containing gold and gold in its natural state, respectively, shall be applicable to the acquisition, holding and transportation of gold in such forms outside of the United States by or on behalf of persons subject to the jurisdiction of the United States.

(b) The acquisition, holding, transportation, importing and exporting, by persons subject to the jurisdiction of the United States, of securities issued by any person holding, as a substantial part of his assets, gold as a store of value or as, or in lieu of, money and not for a specific and customary industrial, professional or artistic use, is prohibited.

[27 F.R. 6974, July 24, 1962]

§ 54.15 Trading in gold on exchanges.

No interest, direct or indirect, legal or equitable, in gold in any form, for present or for future delivery, shall be acquired under a contract made on or subject to the rules of any exchange within the United States. The term "exchange" means any organization, association, or group of persons, whether incorporated or unincorporated, which constitutes, maintains, or provides a market place or facilities for bringing together purchasers and sellers of gold in any form and performs with respect to gold in any form the functions commonly performed by a commodity exchange as that term is generally understood.

[36 F.R. 13786, July 24, 1971]

§ 54.16 Fabricated gold.

Fabricated gold as defined in § 54.4 may be acquired, held, transported within the United States or imported without the necessity of holding a license therefor. Fabricated gold may be exported only as authorized in § 54.25 or in a license issued pursuant to that section. § 54.17 Metals containing gold.

Metals containing not more than 5 troy ounces of fine gold per short ton may be acquired, held, transported within the United States, or imported without the necessity of holding a license therefor. Such metals may be melted or treated, and exported only to the extent permitted by and subject to the conditions prescribed in or pursuant to §§ 54.21 to 54.27, inclusive.

§ 54.18 Unmelted scrap gold.

Unmelted scrap gold may be acquired, held, transported within the United States, or imported, in amounts not exceeding at any one time 50 fine troy ounces of gold content without the necessity of holding a license therefor. Persons holding licenses issued pursuant to § 54.25(a), or acquiring, transporting, importing, or holding gold pursuant to § 54.21, may not acquire, transport, import or hold any gold under authority of this section.

§ 54.19

Gold in its natural state.

(a) Gold in its natural state, as defined in § 54.4, may be acquired, transported within the United States, imported, or held in custody for domestic account only, without the necessity of holding a license therefor.

(b) Gold amalgam which results from the addition of mercury to gold in its natural state, recovered from natural deposits in the United States or a place subject to the jurisdiction thereof, may be heated to a temperature sufficient to separate the mercury from the gold (but not to the melting temperature of gold) without a license by the person who recovered the gold from such deposits, or his duly authorized agent or employee. The retort sponge so resulting may be held and transported by such person without a license: Provided, however, That no such person may hold at any one time an amount of such retort sponge which exceeds in fine gold content 200 troy ounces. Such retort

sponge may be acquired from such persons:

(1) [Reserved];

(2) By persons holding licenses issued pursuant to § 54.25(a);

(3) By other persons provided that the aggregate amount of such retort sponge acquired and held by such other persons does not exceed at any one time 200 fine troy ounces of gold content.

(c) Persons acquiring retort sponge under paragraph (b)(3) of this section are authorized to dispose of such retort sponge only to persons holding licenses issued pursuant to § 54.25(a).

(d) Except as provided in §§ 54.12 to 54.20, inclusive, and in §§ 54.32 and 54.33, gold in its natural state may be melted or treated or exported only to the extent permitted by, and subject to the conditions prescribed in, or pursuant to, §§ 54.21 to 54.27, inclusive.

[19 F.R. 4309, July 14, 1954, as amended at 33 F.R. 4677, Mar. 19, 19681

§ 54.20 Rare coin.

(a) Gold coin of recognized special value to collectors of rare and unusual coin may be acquired, held and transported within the United States for numismatic purposes without the necessity of holding a license therefor. Such coin may not be acquired for the purpose of acquiring the gold bullion contained therein. Such coin may be imported only as permitted by this section or §§ 54.28 to 54.30, 54.34 or licenses issued thereunder, and may be exported only in accordance with the provisions of

§ 54.25.

(b) Gold coin made prior to 1934 is considered to be of recognized special value to collectors of rare and unusual coin.

(c) Gold coin made during or subsequent to 1934 is presumed not to be of recognized special value to collectors of rare and unusual coin.

(d) Gold coin made prior to 1934 may be imported for numismatic purposes without the necessity of obtaining a license therefor.

(e) Gold coin made during or subsequent to 1934 may be imported only pursuant to a specific or general license issued by the Director, Office of Domestic Gold and Silver Operations. Licenses under this paragraph may be issued only for gold coin made prior to 1960, which can be established to the satisfaction of the Director to be of recognized special value to collectors of rare and unusual

coin and to have been originally issued for circulation within the country of issue. Licenses may be issued for gold coin made during or subsequent to 1960 in cases where the particular coin was licensed for importation prior to April 30, 1969. Application for a specific license under this paragraph shall be executed on Form TG-31 and filed in duplicate with the Director.

[34 F.R. 6982, Apr. 26, 1969, as amended at 36 F.R. 13786, July 24, 1971]

Subpart C-Gold for Industrial,
Professional, and Artistic Use

§ 54.21 Fifty ounce

processors.

exemption for

(a) Subject to the conditions in paragraph (b) of this section, any person regularly engaged in an industry, profession, or art, who requires gold for legitimate, customary, and ordinary use therein, may, without the necessity of obtaining a Treasury gold license:

(1) Import gold or acquire gold in any form from any person authorized to hold and dispose of gold in such form and amount under the regulations in in this part or a license issued pursuant hereto;

(2) Hold, transport, melt, and treat such gold;

(3) Furnish unmelted scrap gold to persons operating pursuant to §§ 54.18 or 54.21, or to the holder of a license issued pursuant to § 54.25(a); and

(4) Furnish melted scrap gold to the holder of a license issued pursuant to § 54.25(a) which authorizes the acquisition of such melted scrap gold.

(b) The privileges of paragraph (a) of this section are granted subject to the following conditions:

(1) That the aggregate amount of such gold acquired, held, transported, melted and treated, and imported, does not exceed, at any one time, 50 fine troy ounces of gold content (not including gold which may be acquired, held, etc., without a license under any other section of this part, except § 54.18);

(2) That the aggregate amount of such gold acquired, held, transported, melted and treated, and imported, does not exceed, in any calendar month 350 fine troy ounces of gold content (not including gold wihich may be acquired, held, etc., without a license under any other section of this part, except § 54.18);

(3) That such gold is acquired and held only for processing into fabricated gold, as defined in § 54.4, by such person in the industry, profession, or art in which he is engaged; and

(4) That full and exact records are kept and furnished in compliance with § 54.26.

(c) Persons acquiring, holding, transporting, melting and treating, and importing gold under authority of this section are not authorized:

(1) To consign gold bullion, including semi-processed gold, to other persons for processing except that scrap gold may, for processing and return in semi-processed form, be consigned to the holder of a license issued pursuant to § 54.25 (a), which authorizes the acquisition and melting and treating of such gold;

(2) To furnish melted scrap gold to persons operating pursuant to the provisions of this section or § 54.18;

(3) To dispose of gold held under authority of this section otherwise than in the form of fabricated gold or scrap gold. (d) Persons holding licenses issued pursuant to § 54.25(a) or acquiring,

holding, transporting, or importing, gold pursuant to § 54.18 may not acquire, hold, transport, melt or treat, or import, any gold under authority of this section. [19 F.R. 4309, July 14, 1954, as amended at 33 F.R. 4677, Mar. 19, 1968]

§ 54.22 Licenses required.

Except as permitted in §§ 54.12 to 54.20, inclusive, and § 54.21, gold may be acquired and held, transported, melted or treated, imported, exported or earmarked for industrial, professional or artistic use only to the extent permitted by licenses issued under § 54.25.

§ 54.23 Issuance of licenses or general

authorizations.

The Under Secretary of the Treasury for Monetary Affairs or his delegate may issue or cause to be issued licenses or other authorizations permitting the acquisition and holding, transportation, melting and treating, importing and exporting of gold which the Under Secretary or his delegate is satisfied is required for legitimate and customary use in industry, profession, or art, by persons regularly engaged in the business of furnishing or processing gold for industry, profession, or art.

[19 F.R. 4309, July 14, 1954, as amended at 33 F.R. 4677, Mar. 19, 1968]

§ 54.24 Applications.

Every application for a license under § 54.25 (a) and (c) shall be made on Form TG-12 (except that applications for export licenses shall be made on Form TG-15). Each application for a license shall be filed in duplicate with the Director, Office of Domestic Gold and Silver Operations, Treasury Department, Washington, D.C. 20220. Every applicant for a license under § 54.25 (a) or (c) shall state in his application whether or not any applications have been filed by or licenses issued to any partnership, association or corporation in which the applicant has a substantial interest or, if the applicant is a partnership, association or corporation, by or to a person having a substantial interest in such partnership, association or corporation. The Director, Office of Domestic Gold and Silver Operations, shall not issue any license to any person if in the judgment of the Director more than one license for the same purpose will be held for the principal use or benefit of the same persons or interests. Any person licensed under this subpart acquiring a principal interest in any partnership, association, or corporation, holding a license under this subpart for this purpose shall immediately so inform the Director, Office of Domestic Gold and Silver Operations.

[33 F.R. 5795, Apr. 16, 1968] § 54.25

Licenses.

(a) Licenses for the acquisition and holding, transportation, melting and treating, importing and disposition of gold. (1) Upon receipt of the application and after obtaining such additional information as may be deemed advisable, the Director, Office of Domestic Gold and Silver Operations shall, if satisfied that gold is necessary for the legitimate and customary requirements of the applicant's industry, profession, art, or business, and that the applicant is qualified in all respects to conduct gold operations in full compliance with the provisions of this part and the provisions of a Treasury gold license, issue or cause to be issued to the applicant a Treasury gold license on the approved form for the kind of industry, profession, art, or business, in which the applicant is engaged.

(2) License issued under this section may authorize the licensee to acquire and hold not to exceed a maximum amount