specified therein; to transport such gold, melt or treat it to the extent necessary to meet the requirements of the industry, profession, art or business for which it was acquired and held or otherwise to carry out the purposes for which it is held under license; and to import gold so long as the aggregate amount of all gold held after such importation does not exceed the maximum amount authorized by the license to be held.

(3) Licenses issued under this paragraph do not permit the exportation or transportation of gold in any form 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 exportation 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. Such exportation or transportation is permitted only to the extent authorized in paragraph (b) of this section or in a separate license issued pursuant to such paragraph.

(b) Licenses and authorizations for the exporting of gold. (1) Except as provided in subparagraph (5) of this paragraph, gold bullion as defined in § 54.4 may be exported or transported 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, and 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, only pursuant to a separate export license. Such licenses shall be issued by the Director, Office of Domestic Gold and Silver Operations upon application made on Form TG-15. Export licenses issued under this subparagraph may authorize the export of gold for sale or for refining or processing and return of the refined or processed gold (or the equivalent in refined or processed gold) to the United States. No such license shall authorize the export of gold for sale in an amount or form in which the licensee is not authorized to hold or dispose of gold in the United States or the participation in any transaction prohibited by § 54.14 or paragraph (d) of this section.

(2) Fabricated gold. Fabricated gold as defined in § 54.4 may be exported or transported from the States of the

United States, from the possessions of the United States, from Puerto Rico and from the Canal Zone without the necessity of obtaining a Treasury gold license: Provided, however, That the Bureau of the Census Schedule B statistical classification number of each specific commodity to be exported shall be plainly marked on the outside of the package or container, the shipper's export declaration shall contain a statement that such gold is fabricated gold as defined in § 54.4 and is being exported pursuant to the authorization contained in this subparagraph, and such additional documentation shall be furnished as may be required by the Bureau of Customs or any other government agency charged with the enforcement of laws relating to the exportation of merchandise from the United States.

(3) Rare coin. (i) Rare gold coin, as defined in § 54.20, made prior to April 5, 1933, may be exported or transported from the States of the United States, from the possessions of the United States, from Puerto Rico and the Canal Zone without the necessity of obtaining a Treasury gold license: Provided, however, That the shipper's export declaration shall contain a statement that such coin is rare gold coin and is being exported pursuant to the authorization contained in this subparagraph and such additional documentation shall be furnished as may be requested by the Bureau of Customs or any other government agency charged with the enforcement of laws relating to the exportation of merchandise from the United States.

(ii) Gold coin made subsequent to April 5, 1933, may be exported or transported from the States of the United States, from the possessions of the United States, from Puerto Rico and from the Canal Zone only under license on Form TGL-11 issued by the Director, Office of Domestic Gold and Silver Operations. Application for such a license shall be executed on form TG-11 and filed with the Director, Office of Domestic Gold and Silver Operations, Treasury Department, Washington, D.C. 20220.

(4) [Reserved]

(5) Gold recovered from natural deposits in the United States or any place subject to the jurisdiction thereof, which shall not have entered into monetary or industrial, professional, or artistic use

may be exported from the United States for disposition to a person not subject to the jurisdiction of the United States, or to a person subject to the jurisdiction of the United States who is licensed to acquire such gold without the necessity of obtaining a license therefor. With respect to each such export, such information shall be furnished in such form and at such time as the Director, Office of Domestic Gold and Silver Operations requires under § 54.26(a).

(c) Licenses for the acquisition and holding, transportation, melting and treating, importing and exporting, and disposition of gold for the purpose of furnishing it for industry, profession or art. (1) Upon receipt of the application specified in § 54.24 and after obtaining such additional information as is deemed necessary, the Director, Office of Domestic Gold and Silver Operations, shall, if satisfied 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 license on the approved form, which shall permit the applicant to engage in the business of buying and selling gold required by authorized industrial, professional or artistic users.

(2) Licenses issued under this section and paragraph may authorize the licensee: (i) To acquire and hold gold for the purpose of selling such gold within the United States and its Possessions subject to the conditions and limitations which may be contained in the license; (ii) to transport such gold; (iii) to melt or treat gold or to have it melted or treated for the licensee's account to the extent necessary to meet the requirements of the industries, professions, arts or businesses to which licensee sells, or otherwise to meet the requirements of licensee's business; and (iv) to import gold for sale provided that the aggregate amount of all gold held after such importation does not exceed the maximum amount authorized to be held under the license.

(3) Exports are authorized to the extent permitted by paragraph (b) (2), (4) and (5) of this section or licenses issued thereunder.

(4) Sales of gold held pursuant to a license issued under this paragraph may be made to any other person holding a license hereunder.

(5) With respect to each transaction engaged in by licensees pursuant to licenses issued under this paragraph, including but not limited to each export of gold in any form, such information shall be furnished in such form and at such time as the Director, Office of Domestic Gold and Silver Operations, shall require under § 54.26(a).

(6) The aggregate amount of gold held by a licensee at any one time in any form or from any source, may not exceed the maximum amount authorized to be held under the license.

(7) Nothing contained in this paragraph or any license issued hereunder shall be deemed to allow the sale or delivery of gold to persons subject to the jurisdiction of the United States who are not authorized to acquire gold under the regulations in this part.

(d) Prohibited transactions. Persons subject to the regulations contained in this part are prohibited from engaging in transactions with a foreign monetary authority involving gold, regardless of form.

[28 F.R. 8290, Aug. 13, 1963, as amended at 33 F.R. 4677, Mar. 19, 1968; 33 F.R. 5795, Apr. 16, 1968; 35 F.R. 6390, Apr. 21, 1970] § 54.26 Investigations; records; sub

poenas.

(a) The Under Secretary of the Treasury for Monetary Affairs or his delegate is authorized to make or cause to be made such studies and investigations, to conduct such hearings, and to obtain such information as the Under Secretary or his delegate deems necessary or proper to assist in the consideration of any applications for licenses, or in the administration and enforcement of the acts, the orders, and the regulations in this part.

(b) Every person holding a license issued under § 54.24 (a), or acquiring, holding or disposing of gold pursuant to the authorizations in §§ 54.18 and 54.21, shall keep full and accurate records of all his operations and transactions with respect to gold, and such records shall be available for examination by a representative of the Treasury Department until the end of the fifth calendar year (or if such person's accounts are kept on a fiscal year basis, until the end of the fifth fiscal year) following such operations or transactions. The records required to be kept by this section shall include the name, address, and Treasury gold license number of each person from

whom gold is acquired or to whom gold is delivered, and the amount, date, description and purchase or sales price of each such acquisition and delivery, and any other records or papers required to be kept by the terms of a Treasury Department gold license. If the person from whom gold is acquired, or to whom gold is delivered, does not have a Treasury gold license such records shall show, in lieu of the license number of such person, the section of the regulations in this part pursuant to which such gold was held or acquired by such person. Such records shall also show all costs and expenses entering into the computation of the total domestic value of articles of fabricated or semi-processed gold as defined in § 54.4.

(c) The Under Secretary of the Treasury for Monetary Affairs or his delegate (or the officers and employees of the Treasury Department specifically designated by the Under Secretary or his delegate) or any department or agency charged with the enforcement of the acts, the orders, or the regulations in this part, may require any person to permit the inspection and copying of records and other documents and the inspection of inventories of gold and to furnish, under oath or affirmation or otherwise, complete information relative to any transaction referred to in the acts, the orders, or the regulations in this part involving gold or articles manufactured from gold. The records which may be required to be furnished shall include any records required to be kept by this section and, to the extent that the production of such information is necessary and appropriate to the enforcement of the provisions of the acts, the orders, and the regulations in this part, or licenses issued thereunder, any other records, documents, reports, books, accounts, invoices, sales lists, sales slips, orders, vouchers, contracts, receipts, bills of lading, correspondence, memoranda, papers and drafts, and copies thereof, either before or after the completion of the transaction to which such records refer.

(d) The Under Secretary of the Treasury for Monetary Affairs or his delegate may administer oaths and affirmations and may, whenever necessary, require any person holding a license under § 54.25 or acquiring, holding or disposing of gold pursuant to the authorizations of §§ 54.18 or 54.21, or any officer, director, or employee of such person, to appear and tes

Every person holding a license issued pursuant to § 54.25(a) shall make reports on the appropriate report form specified in such license for the six months' periods ending on the last days of June and December, respectively, and shall file such reports with the Under Secretary of the Treasury for Monetary Affairs, Treasury Department, Washington, D.C. 20220. Reports shall be filled within twenty-five days after the termination of the period for which such reports are made.

Subpart D-Gold for the Purpose of Settling International Balances and for Other Purposes

§ 54.28 Acquisitions by Federal Reserve banks for purposes of settling international balances, etc.

The Federal Reserve banks may from time to time acquire from the United States by redemption of gold certificates in accordance with section 6 of the Gold Reserve Act of 1934 such amounts of gold bullion as, in the judgment of the Secretary of the Treasury, are necessary to settle international balances or to maintain the equal purchasing power of every kind of currency of the United States. Such banks may also acquire gold (other than United States gold coin) abroad or from private sources within the United States.

§ 54.29 Dispositions by Federal Reserve banks.

The gold acquired under § 54.28 may be held, transported, imported, exported, or earmarked for the purposes of settling international balances or maintaining the equal purchasing power of every kind of currency of the United States: Provided, That if the gold is not used for such purposes within 6 months from the date of acquisition, it shall (unless the Secretary of the Treasury shall have extended the period within which such gold may be so held) be paid and delivered to the Treasurer of the United States against payment therefor by credits in equivalent amounts in dollars in the accounts authorized under the sixteenth paragraph of section 16 of the

Federal Reserve Act, as amended (48 Stat. 339; 12 U.S.C. 467).

§ 54.30 Provisions limited to Federal Reserve banks.

The provisions of this subpart shall not be construed to permit any person subject to the jurisdiction of the United States, other than a Federal Reserve bank, to acquire gold for the purposes specified in this subpart or to permit any person to acquire gold from a Federal Reserve bank except to the extent that his license issued under this part specifically so provides.

Subpart E-Gold for Other Purposes Not Inconsistent With the Purposes of the Gold Reserve Act of 1934 and the Act of October 6, 1917, as Amended

Gold may be acquired and held, transported, melted or treated, imported, exported, or earmarked for purposes other than those specified in §§ 54.21 to 54.30, inclusive, not inconsistent with the purposes of the acts only to the extent permitted in §§ 54.12 to 54.20 inclusive, and § 54.32, or under a license issued under §§ 54.33, 54.34 or 54.35.

[19 F.R. 4309, July 14, 1954, as amended at 30 F.R. 10885, Aug. 21, 1965]

§ 54.32 Gold imported in gold-bearing materials for re-export.

(a) Gold refined (or the equivalent to gold refined) from gold-bearing materials imported into the United States for refining and re-export may be reexported to the foreign exporter or pursuant to his order, without the necessity of obtaining a Treasury gold export license, subject to the following conditions:

(1) The imported gold-bearing material either (1) was imported into the United States from a foreign resident or a foreign organization, or (ii) was mined by a branch or other office of a United States organization and imported into the United States from such branch or office;

(2) The importer has no right, title, or interest in the gold refined from the imported gold-bearing material other than through its branch or office which is the foreign exporter as provided in subparagraph (1) (i) and (ii) of this paragraph, and the importer will not participate in the sale of such refined

66-069-72-6

gold or receive any commission in connection with the sale of such refined gold;

(3) The refined gold is to be re-exported to the foreign exporter or, pursuant to his order, to a foreign resident or foreign organization; and

(4) Such gold is imported, acquired, and held, transported, melted and treated, as permitted in § § 54.12 to 54.20, inclusive, or in accordance with a license issued under § 54.25, and in full compliance with the provisions of paragraph (b) of this section.

Per

(b) Procedural requirements. sons exporting gold pursuant to paragraph (a) of this section shall comply with the following requirements:

(1) Notation upon entry. Upon the formal entry into the United States of any gold-bearing materials, the importer shall declare to the collector of customs at the port where the material is formally entered that the importation is made with the intention of exporting the gold refined therefrom to the foreign exporter, or pursuant to his order. The collector shall make on the entry a notation to this effect and forward a copy of the entry to the United States assay office at New York or to the United States mint at San Francisco, whichever is designated by the importer.

(2) Sampling and assaying. Promptly upon the receipt of each importation of gold-bearing material at the plant where it is first to be treated, it shall be weighed, sampled, and assayed for the gold content. A reserve commercial sample shall be retained by such plant for at least 1 year from the date of importation, unless the assay is sooner verified by the Treasury Department.

(3) Plant records. The importer shall cause an exact record, covering each importation, to be kept at the plant of first treatment. The records shall show the gross wet weight of the importation, the weight of containers, if any, the net wet weight, the percentage and weight of moisture, the net dry weight, and the gold content shown by the settlement assay. A true copy of such record shall be filed promptly with the assay office in New York or the mint at San Francisco, whichever has been designated to receive a copy of the entry. The plant records herein required to be kept shall be available for examination by a representative of the Treasury Department for at least 1 year after the date of the disposition of such gold.

(4) Limitations on exports. The gold refined (or the equivalent to gold refined) from imported gold-bearing materials shall be exported not later than seven months from the date of entry of such gold-bearing materials and shall not exceed the amount of gold shown on the refiner's settlement sheet as having been recovered from the imported goldbearing material: Provided, That, such gold may be exported prior to the procurement of the refiner's settlement sheet in an amount not in excess of 90 percent of a written estimate of the gold content of the gold-bearing material based upon the actual test assay of such material.

(5) Export declaration and certificate. The exporter shall state on his export declaration that the shipment is gold refined (or the equivalent to gold refined) from imported gold-bearing materials which is being exported pursuant to the authorization contained in this section, and shall attach to his export declaration a certificate properly executed in duplicate on Form TG-16 and two true copies of the refiner's settlement sheet. In the event that exportation is made prior to procurement of the settlement sheet, duplicate certified copies of the report of the actual test assay of the gold-bearing material, together with a statement showing that an exportation with respect to such material is necessary prior to the time the settlement sheet can be procured, shall be submitted by the exporter with his export declaration and certificate on Form TG-16. The collector of customs shall forward a copy of the certificate on Form TG-16 and a copy of the settlement sheet, or the report of the test assay, to the United States assay office at New York or the United States mint at San Francisco, whichever has been designated to receive a copy of the entry.

limits of the United States. Upon the arrival in the United States of gold imported for re-export pursuant to the provisions of this section, the importer shall declare to the collector of customs at the port of entry that it will be reexported promptly. The collector of customs shall make a notation of this declaration upon the entry and forward a copy of the entry to the Under Secretary of the Treasury for Monetary Affairs or his delegate.

(b) Exportation pursuant to license. In the event that the export of any gold imported pursuant to this section is delayed due to the unavaliability of facilities for the onward transportation of such gold, the Under Secretary of the Treasury for Monetary Affairs or his delegate may, subject to the following provisions, issue licenses on Form TGL17 authorizing the importation, holding, transportation, and exportation of gold which the Under Secretary or his delegate is satisfied is, in fact, imported for re-export promptly upon the completion of necessary arrangements for the transportation of such gold.

(1) Every application for a license under this section shall be made on form TG-17 and shall be filed with the Under Secretary of the Treasury for Monetary Affairs or his delegate.

(2) Upon receipt of the application and after making such investigation of the case as may be deemed advisable, the Under Secretary of the Treasury of Monetary Affairs or his delegate, if satisfied that the gold was, in fact, imported for re-export promptly upon the completion of necessary arrangements for the transportation of such gold, shall issue to the applicant a license on form TGL-17.

§ 54.34

Licenses for other purposes.

The Secretary of the Treasury, with the approval of the President, shall issue licenses authorizing the acquisition, transportation, melting or treating, importing, exporting, or earmarking of gold, for purposes other than those specified in §§ 54.21 to 54.30, inclusive, 54.32 and 54.33, which, in the judgment of the Secretary of the Treasury, are not inconsistent with the purposes of the acts, subject to the following provisions:

(a) Applications. Every application for a license under this section shall be made on form TG-18 and shall be filed in duplicate with the Federal Reserve bank for the district in which the appli