PART 580--HAITIAN TRANSACTIONS REGULATIONS Subpart A--Relation of this Part to Other Laws and Regulations Sec. 580.101 Relation of this part to other laws and regulations. Subpart B--Prohibitions 580.201 Prohibited transactions involving property in which the Government of Haiti has an interest; transactions with respect to securities. 580.202 Prohibited payments or transfers to the de facto regime in Haiti. 580.203 Holding of certain types of blocked property in interest-bearing accounts. 580.204 Effect of transfers violating the provisions of this part. 580.205 Prohibited importation of goods or services from Haiti. 580.206 Prohibited exportation of goods, technology or services to Haiti. 580.207 Exemption of informational materials. 580.208 Prohibited grants or extensions of credits or loans. 580.209 Evasions. 580.210 Effective date. 580.211 Entry of vessels engaged in trade with Haiti. Subpart C--General Definitions 580.301 Blocked account; blocked property. 580.302 Credits. 580.303 De facto regime in Haiti. 580.304 Effective date. 580.305 Entity. 580.306 General license. 580.307 Government of Haiti. 580.308 Haiti. 580.309 Haitian origin. 580.310 Informational materials. 580.311 Interest. 580.312 License. 580.313 Person. 580.314 Property; property interest. 580.315 Specific license. 580.316 Transfer. 580.317 United States. 580.318 U.S. financial institution. 580.319 United States person; U.S. person. Subpart D--Interpretations 580.401 Reference to amended sections. 580.402 Effect of amendment. 580.403 Termination and acquisition of an interest of the Government of Haiti. 580.404 Payments to the de facto regime in Haiti prohibited; procedures for making payments to the Federal Reserve Bank of New York. 580.405 Indirect payments to the de facto regime in Haiti; payments by subsidiaries in third countries. 580.406 Setoffs prohibited. 580.407 Payments in kind. 580.408 Offshore transactions. 580.409 Transshipments through the United States prohibited. 580.410 Importation from third countries; transshipments. 580.411 Exportation to third countries; transshipments. 580.412 Importation into and release from bonded warehouse or foreign trade zone. Subpart E--Licenses, Authorizations, and Statements of Licensing Policy 580.501 Effect of license or authorization. 580.502 Exclusion from licenses and authorizations. 580.503 Payments and transfers to blocked accounts in U.S. financial institutions. 580.504 Importation of household and personal effects. 580.505 Transactions related to telecommunications authorized. 580.506 Transactions related to mail authorized. 580.507 Transactions related to informational materials. 580.508 Importation of certain machinery, parts and materials. 580.509 Reserve accounts. 580.510 Exports of medicines and medical supplies. 580.511 Diplomatic pouches authorized. 580.512 Importation of certain gifts authorized. 580.513 Certain exportations for the Organization of American States. 580.514 Investment and reinvestment of Government of Haiti funds held in blocked accounts. 580.515 Importation from and exportation to assembly/production operations. 580.516 Shipments to Haiti of certain foodstuffs and propane. 580.517 Exportation of certain products for use in humanitarian projects. Subpart F--Reports 580.601 Required records. 580.602 Reports to be furnished on demand. 580.603 Registration of persons holding blocked property subject to 580.201. Subpart G--Penalties 580.701 Penalties. 580.702 Prepenalty notice. 580.703 Presentation responding to prepenalty notice. 580.704 Penalty notice. 580.705 Referral to United States Department of Justice. 580.706 Seizure of shipments. Subpart H--Procedures 580.801 Licensing. 580.802 Decisions. 580.803 Amendment, modification, or revocation. 580.804 Rulemaking. 580.805 Delegation by the Secretary of the Treasury. 580.806 Rules governing availability of information. 580.807 Customs procedures: merchandise specified in 580.205. Subpart I--Paperwork Reduction Act 580.901 Paperwork Reduction Act notice. Authority: 50 U.S.C. 1701 et seq.; E.O. 12775, 56 FR 50641 (Oct. 7, 1991); E.O. 12779, 56 FR 55975 (Oct. 30, 1991). Source: 57 FR 10821, Mar. 31, 1992, unless otherwise noted. Subpart A--Relation of This Part to Other Laws and Regulations 580.101 Relation of this part to other laws and regulations. (a) This part is separate from, and independent of, the other parts of this chapter. No license or authorization contained in or issued pursuant to those other parts authorizes any transaction prohibited by this part. No license or authorization contained in or issued pursuant to any other provision of law or regulations authorizes any transaction prohibited by this part. (b) No license or authorization contained in or issued pursuant to this part relieves the involved parties from complying with any other applicable laws or regulations. Subpart B--Prohibitions 580.201 Prohibited transactions involving property in which the Government of Haiti has an interest; transactions with respect to securities. (a) Except as authorized by regulations, orders, directives, licenses, or otherwise, all property and interests in property of the Government of Haiti, that are in the United States, that hereafter come within the United States, or that are or hereafter come within the possession or control of United States persons including their overseas branches, are blocked. (b) Except as authorized by regulations, orders, directives, licenses, or otherwise, no property or interest in property of the Government of Haiti that is in the United States, that hereafter comes within the United States, or that is or hereafter comes within the possession or control of U.S. persons, including their overseas branches, may be transferred, paid, exported, withdrawn or otherwise dealt in. (c) Unless authorized by a license expressly referring to this section, the acquisition, transfer (including the transfer on the books of any issuer or agent thereof), disposition, transportation, importation, exportation, or withdrawal of, or the endorsement or guaranty of signatures on, or otherwise dealing in any security (or evidence thereof) registered or inscribed in the name of the Government of Haiti is prohibited irrespective of the fact that at any time (either prior to, on, or subsequent to 12:23 p.m., e.d.t., October 4, 1991) the registered or inscribed owner thereof may have, or appears to have, assigned, transferred, or otherwise disposed of any such security. 580.202 Prohibited payments or transfers to the de facto regime in Haiti. Except as authorized by regulations, orders, directives, licenses, or otherwise, no direct or indirect payments or transfers may be made to the de facto regime in Haiti of funds, including currency, cash, or coins of any nation, or of other financial or investment assets or credits, by any United States person, or by any person organized under the laws of Haiti and owned or controlled by a United States person. All transfers or payments owed to the Government of Haiti shall be made when due into an account at the Federal Reserve Bank of New York, as provided in 580.404, or credited to a blocked reserve account, as provided in 580.509. 580.203 Holding of certain types of blocked property in interest-bearing accounts. (a) Any person, including a U.S. financial institution, currently holding property subject to 580.201 which, as of the effective date of this section, December 12, 1991, or the date of receipt if subsequent to the effective date, is not being held in an interest-bearing account, or otherwise invested in a manner authorized by the Office of Foreign Assets Control, shall transfer such property to, or hold such property or cause such property to be held in, an interest-bearing account in a U.S. financial institution with value as of the effective date of this section or the date of receipt if subsequent to the effective date, unless otherwise authorized or directed by the Office of Foreign Assets Control. This requirement shall apply to currency, bank deposits, accounts, any other financial assets, and any proceeds resulting from the sale of tangible or intangible property. If interest is credited to an account separate from that in which the interest-bearing asset is held, the name of the account party on both accounts must be the same and must clearly indicate the blocked Government of Haiti entity having an interest in the accounts. (b) For purposes of this section, the term ``interest-bearing account'' means a blocked account in a U.S. financial institution earning interest at rates that are commercially reasonable for the amount of funds in the account. Except as otherwise authorized, the funds may not be invested or held in instruments the maturity of which exceeds 90 days. (c) This section does not apply to blocked tangible property, such as chattels, nor does it create an affirmative obligation on the part of the holder of such blocked tangible property to sell or liquidate the property and put the proceeds in a blocked account. However, the Office of Foreign Asssets Control may issue licenses permitting or directing sales of tangible property in appropriate cases. 580.204 Effect of transfers violating the provisions of this part. (a) Any transfer after 12:23 p.m., e.d.t., October 4, 1991, which is in violation of any provision of this part or of any regulation, order, directive, license, or other direction or authorization hereunder and involves any property in which the Government of Haiti has or has had an interest since such date, is null and void and shall not be the basis for the assertion or recognition of any interest in or right, remedy, power or privilege with respect to such property. (b) No transfer before 12:23 p.m., e.d.t., October 4, 1991, shall be the basis for the assertion or recognition of any right, remedy, power, or privilege with respect to, or interest in, any property in which the Government of Haiti has an interest, or has had an interest since such date, unless the person with whom such property is held or maintained had written notice of the transfer or by any written evidence had recognized such transfer prior to such date. (c) Unless otherwise provided, an appropriate license or other authorization issued by or pursuant to the direction or authorization of the Director of the Office of Foreign Assets Control before, during, or after a transfer shall validate such transfer or render it enforceable to the same extent as it would be valid or enforceable but for the provisions of the International Emergency Economic Powers Act and this part, and any ruling, order, regulation, direction or instruction issued hereunder. (d) Transfers of property which otherwise would be null and void or unenforceable, by virture of the provisions of this section, shall not be deemed to be null and void or unenforceable pursuant to such provisions, as to any person with whom such property was held or maintained (and as to such person only) in cases in which such person is able to establish to the satisfaction of the Director of the Office of Foreign Assets Control each of the following: (1) Such transfer did not represent a willful violation of the provisions of this part by the person with whom such property was held or maintained; (2) The person with whom such property was held or maintained did not have reasonable cause to know or suspect, in view of all the facts and circumstances known or available to such person, that such transfer required a license or authorization by or pursuant to this part and was not so licensed or authorized, or if a license or authorization did purport to cover the transfer, that such license or authorization had been obtained by misrepresentation of a third party or the withholding of material facts or was otherwise fradulently obtained; and (3) Promptly upon discovery that: (i) Such transfer was in violation of the provisions of this part or any regulation, ruling, instruction, license or other direction or authorization hereunder, or (ii) Such transfer was not licensed or authorized by the Office of Foreign Assets Control, or (iii) If a license did purport to cover the transfer, such license had been obtained by misrepresentation of a third party or the withholding of material facts or was otherwise fraudulently obtained; the person with whom such property was held or maintained filed with the Office of Foreign Assets Control, U.S. Treasury Department, Washington, DC, a report setting forth in full the circumstances relating to such transfer. The filing of a report in accordance with the provisions of this paragraph shall not be deemed to be compliance or evidence of compliance with paragraphs (d) (1) and (2) of this section. (e) Unless licensed or authorized pursuant to this part, any attachement, judgment, decree, lien, execution, garnishment or other judicial process is null and void with respect to any property in which on or since 12:23 p.m., e.d.t., October 4, 1991, there existed an interest of the Government of Haiti. 580.205 Prohibited importation of goods or services from Haiti. (a) Except as otherwise authorized, no goods or services of Haitian origin, other than publications and other informational materials, may be imported into the United States. (b) The importation into the United States through 11:59 p.m., e.s.t., December 5, 1991, of goods containing parts of materials exported to Haiti prior to 11:59 p.m., e.s.t., November 5, 1991, which were assembled or processed into goods containing parts or materials exported from the United States, is authorized. Note to paragraph (b): Transactions authorized by paragraph (b) of this section have been completed prior to publication of this part. The text of paragraph (b) is included for the convenience of the user. See also 580.508. 580.206 Prohibited exportation of goods, technology or services to Haiti. Except as otherwise authorized, no goods, technology (including technical data or other information), or services may be exported from the United States, either directly or indirectly, to Haiti, except (a) publications and other informational materials, (b) donations of articles intended to relieve human suffering, such as food, clothing, medicine and medical supplies, and (c) rice, beans, sugar, wheat flour, and cooking oil. 580.207 Exemption of informational materials. (a) The importation from Haiti, and the exportation to Haiti, whether commercial or otherwise, of informational materials, as defined in 580.310, are exempt from the prohibitions and regulations of this part. (b) All transactions of common carriers incident to the importation or exportation of informational materials between the United States and Haiti are exempt from the prohibitions and regulations of this part. (c) This section does not authorize transactions related to informational materials not fully created and in existence at the date of the transaction, or to the substantive or artistic alteration or enhancement of informational materials, or to the provision of marketing and business consulting services by a person subject to the jurisdiction of the United States. Such prohibited transactions include, without limitation, payment of advances for informational materials not yet created and completed, provision of services to market, produce or co-produce, create or assist in the creation of informational materials, and payment of royalties to a person in Haiti with respect to income received for enhancements or alterations made by U.S. persons to informational materials imported from Haiti. (d) This section does not authorize transactions incident to the transmission of restricted technical data as defined in part 779 of the Export Administration Regulations, 15 CFR parts 768 through 799, or to the exportation of goods for use in the transmission of any data. The exportation of such goods to Haiti is prohibited, as provided in 580.206 of this part and 785.1 of the Export Administration Regulations. Example 1: A U.S. publisher ships 500 copies of a book to Haiti directly from Miami aboard a chartered aircraft, and receives payment by a bank in Haiti. These are permissible transactions under this section. Example 2: A Haitian party exports a single master copy of a Haitian motion picture to a U.S. party and licenses the U.S. party to duplicate, distribute, show and exploit in the United States the Haitian film in any medium, including home video distribution, for five years, with the Haitian party receiving 40% of the net income. The transactions relating to the activities described in this example are authorized under this section or 580.507. Example 3: A U.S. recording company proposes to contract with a Haitian musician to create certain musical compositions in Haiti and to advance royalties of $10,000 to the musician. This is a prohibited transaction. The U.S. party is prohibited under 580.206 from contracting for the Haitian musician's services to be performed in Haiti. No informational materials are in being at the time of this proposed transaction. However, the U.S. recording company may propose to contract with a Haitian musician for services to be performed outside of Haiti, irrespective of whether the informational materials are in being at the time of the proposed transaction, provided the Haitian national is not acting on behalf of the de facto regime. See 580.206 and 580.309(c). Example 4: A Haitian party enters into a sub-publication agreement licensing a U.S. party to print and publish copies of a musical composition and to sub-license rights of public performance, adaptation, and arrangement of the musical composition, with payment to be a percentage of income received. All transactions related to the activities described in this example are authorized under this section and 580.507, except for synchronization, adaptation, and arrangement, which constitute artistic enhancement of the Haitian composition. Payment to the Haitian party may not reflect income received as a result of these enhancements. 580.208 Prohibited grants or extensions of credits or loans. Except as authorized, no U.S. person may grant or extend credits or loans to the Government of Haiti. 580.209 Evasions. Any transaction for the purpose of, or which has the effect of, evading or avoiding any of the prohibitions set forth in this subpart is hereby prohibited. 580.210 Effective date. The effective dates of the prohibitions and directives contained in this subpart B are as follows: (a) With respect to 580.201, 580.202, 580.204, 580.208, 580.209 and 580.210, 12:23 p.m., e.d.t., October 4, 1991; (b) With respect to 580.205, 580.206 and 580.207, 11:59 p.m., e.s.t., November 5, 1991; (c) With respect to 580.203, 12:00 p.m. e.s.t., December 12, 1991. 580.211 Entry of vessels engaged in trade with Haiti. Except as otherwise authorized, any vessel that has called in Haiti since the later of June 5, 1992 or the vessel's last call in the United States (the ``reference date'') is prohibited from entering a U.S. port unless it has demonstrated to the satisfaction of the Office of Foreign Assets Control that all calls in Haiti since the reference date were for transactions: (a) Exempted or excepted from the prohibitions of this part if engaged in by a U.S. person; or (b) Specifically licensed by the Office of Foreign Assets Control, or authorized by a member state of the Organization of American States pursuant to MRE/RES. 3 - 92; or (c) Under a contract of voyage that was fully completed prior to the vessel's currently proposed entry into a U.S. port. [57 FR 23955, June 5, 1992] Subpart C--General Definitions 580.301 Blocked account; blocked property. The terms blocked account and blocked property shall mean any account or property in which the Government of Haiti has an interest, and with respect to which payments, transfers, exportations, withdrawals or other dealings may not be made or effected except pursuant to an authorization or license from the Office of Foreign Assets Control authorizing such action. 580.302 Credits. The term credits means any transfer or extension of funds or credit on the basis of an obligation to repay, or any assumption or guarantee of the obligation of another to repay an extension of funds or credit. The term credits includes, but is not limited to: overdrafts; purchases of debt securities issued by the Government of Haiti after October 4, 1991; sales of financial assets subject to an agreement to repurchase; renewals or refinancings whereby funds or credits are transferred to or extended to the Government of Haiti; and draw-downs on existing lines of credit. 580.303 De facto regime in Haiti. (a) The term de facto regime in Haiti includes: (1) Those who seized power illegally from the democratically elected government of President Jean-Bertrand Aristide on September 30, 1991, and any agencies, instrumentalities or entities purporting to act on behalf of the de facto regime in Haiti or under the asserted authority thereof, or any extraconstitutional successor thereto; (2) Any partnership, association, corporation, or other organization substantially owned or controlled by the foregoing; (3) Any person to the extent that such person is, or has been, or to the extent that there is reasonable cause to believe that such person is, or has been, since 12:23 p.m., e.d.t., October 4, 1991, acting or purporting to act directly or indirectly on behalf of any of the foregoing; or (4) Any other person or organization determined by the Director of the Office of Foreign Assets Control to be included within this section. Such determinations shall be published from time to time in the Federal Register, but shall be binding prior to such publication upon any person receiving actual notice thereof. (b) A partnership, association, corporation, or other organization shall not be deemed to fall within the definition of the de facto regime in Haiti solely by reason of being located in, organized under the laws of, or having its principal place of business in, Haiti. 580.304 Effective date. The term effective date refers to the effective date of the applicable prohibition, as identified in 580.210. 580.305 Entity. The term entity includes a corporation, partnership, association, or other organization. 580.306 General license. The term general license means any license or authorization the terms of which are set forth in this part. 580.307 Government of Haiti The term Government of Haiti includes the state and the Government of Haiti or any persons purporting to be the Government of Haiti (including the de facto regime in Haiti), as well as any political subdivision, agency, instrumentality or controlled entity thereof, including the Banque de la Republique d'Haiti. 580.308 Haiti. The term Haiti means the Republic of Haiti and all areas under the jurisdiction or authority thereof. 580.309 Haitian origin. The term goods or services of Haitian origin includes: (a) Goods produced, manufactured, grown, extracted or processed within Haiti; (b) Goods which have entered into Haitian commerce; and (c) Services performed in Haiti, or by a Haitian national, wherever located, who is acting as an agent, employee, or contractor of the de facto regime in Haiti. 580.310 Informational materials. (a) For purposes of this part, the term informational materials means: (1) Publications, films, posters, phonograph records, photographs, microfilms, microfiche, tapes, and other informational articles, including tangible items described in the following: (2) 15 CFR 799.1, Control List, Group 5, CL No. 7599I: microfilm that reproduces the content of certain publications, and similar materials; (3) 15 CFR 799.1, Control List, Group 9, CL No. 7599I: certain publications and related materials; and (4) 15 CFR 799.3, General License GTDA, technical data available to all destinations; (b) The term informational materials does not include: (1) Items that are controlled for export for national security reasons under section 5 of the Export Administration Act of 1979, or with respect to which acts are prohibited by chapter 37 of title 18 of the United States Code; and (2) Intangible items, such as telecommunications transmissions. 580.311 Interest. Except as otherwise provided in this part, the term interest when used with respect to property (e.g., ``an interest in property'') means an interest of any nature whatsoever, direct or indirect. 580.312 License. Except as otherwise specified, the term license means any license, authorization, or directive contained in or issued by the Office of Foreign Assets Control pursuant to this part. 580.313 Person. The term person means an individual, partnership, association, corporation, or other organization. 580.314 Property; property interest. The terms property and property interest include, but are not limited to, money, checks, drafts, bullion, bank deposits, savings accounts, debts, indebtedness, obligations, notes, debentures, stocks, bonds, coupons, any other financial instruments, bankers acceptances, mortgages, pledges, liens or other rights in the nature of security, warehouse receipts, bills of lading, trust receipts, bills of sale, any other evidences of title, ownership or indebtedness, letters of credit any documents relating to any rights or obligations thereunder, powers of attorney, goods, wares, merchandise, chattels, stocks on hand, ships, goods on ships, real estate mortgages, deeds of trust, vendors sales agreements, land contracts, real estate and any interest therein, leaseholds, ground rents, options, negotiable instruments, trade acceptances, royalties, book accounts, accounts payable, judgements, patents, trademarks or copyrights, insurance policies, safe deposit boxes and their contents, annuities, pooling agreements, services of any nature whatsoever, contracts of any nature whatsoever, and any other property, real, personal, or mixed, tangible or intangible, or interest or interests therein, present, future or contingent. 580.315 Specific license. The term specific license means any license, authorization, or directive not set forth in this part but issued by the Office of Foreign Assets Control pursuant to this part in response to a written application. 580.316 Transfer. The term transfer means any actual or purported act of transaction, whether or not evidenced by writing, and whether or not done or performed within the United States, the purpose, intent, or effect of which is to create, surrender, release, convey, transfer, or alter, directly or indirectly, any right, remedy, power, privilege, or interest with respect to any property and, without limitation upon the forgoing, shall include the making, execution, or delivery of any assignment, power, conveyance, check, declaration, deed, deed of trust, power of attorney, power of appointment, bill of sale, mortgage, receipt, agreement, contract, certificate, gift, sale, affidavit, or statement; the appointment of any agent, trustee, or fiduciary; the creation or transfer of any lien; the issuance, docketing, filing, or the levy of or under any judgment, decree, attachment, injunction, execution, or other judicial or administrative process or order, or the service of any garnishment; the acquisition of any interest of any nature whatsoever by reason of a judgment or decree of any foreign country; the fulfillment of any condition; the exercise of any power of appointment, power of attorney, or other power; or the acquisition, disposition, transportation, importation, exportation, or withdrawal of any security. 580.317 United States. The term United States means the United States, its territories and possessions, and all areas under the jurisdiction or authority thereof. 580.318 U.S. financial institution. The term U.S. financial institution means any U.S. person (including foreign branches) that is engaged in the business of accepting deposits, making, granting, transferring, holding, or brokering loans or credits, or purchasing or selling foreign exchange, securities, commodity futures or options, or procuring purchasers and sellers thereof, as principal or agent; including, but not limited to, depository institutions, banks, savings banks, trust companies, securities brokers and dealers, commodity futures and options brokers and dealers, forward contract and foreign exchange merchants, securities and commodities exchanges, clearing corporations, investment companies, employee benefit plans, and U.S. holding companies, U.S. affiliates, or U.S. subsidiaries of any of the foregoing. This term includes those branches, offices and agencies of foreign financial institutions which are located in the United States, but not such institutions' foreign branches, offices, or agencies. 580.319 United States person; U.S. person. The term United States person or U.S. person means any United States citizen; permanent resident alien; juridical person organized under the laws of the United States or any jurisdiction within the United States, including foreign branches; or any person in the United States. Subpart D--Interpretations 580.401 Reference to amended sections. Except as otherwise specified, reference to any section of this part or to any regulation, ruling, order, instruction, direction, or license issued pursuant to this part shall be deemed to refer to the same as currently amended. 580.402 Effect of amendment. Any amendment, modification, or revocation of any section of this part or of any order, regulation, ruling, instruction, or license issued by or under the direction of the Director of the Office of Foreign Assets Control shall not, unless otherwise specifically provided, be deemed to affect any act done or omitted to be done, or any civil or criminal suit or proceeding commenced or pending prior to such amendment, modification, or revocation. All penalties, forfeitures, and liabilities under any such order, regulation, ruling, instruction, or license shall continue and may be enforced as if such amendment, modification, or revocation had not been made. 580.403 Termination and acquisition of an interest of the Government of Haiti. (a) Whenever a transaction licensed or authorized by or pursuant to this part results in the transfer of property (including any property interest) away from the Government of Haiti, such property shall no longer be deemed to be property in which the Government of Haiti has or has had an interest unless there exists in the property another such interest, the transfer of which has not been effected pursuant to license or other authorization. (b) Unless otherwise specifically provided in a license or authorization issued pursuant to this part, if property (including any property interest) is transferred to the Government of Haiti, such property shall be deemed to be property in which there exists an interest of the Government of Haiti. 580.404 Payments to the de facto regime in Haiti prohibited; procedures for making payments to the Federal Reserve Bank of New York. (a) The prohibitions on payments and transfer to the de facto regime in Haiti in 580.202 shall apply to payments and transfers of any kind whatsoever, including payment of debt obligations, fees, taxes, and royalties owed to the Government of Haiti, and also including payment or transfer of dividends, interest payments, and other periodic payments. (b) Payments or transfers owed to the Government of Haiti shall be made to ``Government of Haiti Account No. 021083909,'' established on the books of the Federal Reserve Bank of New York pursuant to 580.202. Payments or transfers of funds into Government of Haiti Account No. 021083909 over FedWire should be made using Typecode 15. The transfer instructions should name ``Government of Haiti Account No. 021083909'' and identify the nature of the payment. 580.405 Indirect payments to the de facto regime in Haiti; payments by subsidiaries in third countries. The prohibitions in 580.202 on payments or transfers to the de facto regime in Haiti apply to indirect payments (including reimbursement of a non-U.S. person for payment) made after 12:23 p.m., e.d.t., October 4, 1991. Unlicensed payments or transfers made to the de facto regime in Haiti from U.S. subsidiaries in third countries shall be considered an evasion of the prohibitions set forth in 580.202 where such payments or transfers prior to that date were normally made by U.S. persons, including their foreign branches, or by persons organized under the laws of Haiti and owned or controlled by U.S. persons. Payments or transfers by third-country subsidiaries of U.S. persons which were routinely made by such subsidiaries prior to October 4, 1991, however, are not prohibited. [57 FR 10821, Mar. 31, 1992, as amended at 57 FR 23955, June 5, 1992] 580.406 Setoffs prohibited. (a) A setoff against a blocked account, whether by a U.S. financial institution or other U.S. person, is a prohibited transfer under 580.202 if effected after 12:23 p.m., e.d.t., October 4, 1991. (b) Except as licensed or otherwise authorized, a setoff as a method of settling payments with the de facto regime in Haiti, as by netting or canceling a debt or other obligation, is prohibited. 580.407 Payments in kind. Payments in kind made to the de facto regime in Haiti in lieu of a payment or transfer of funds, which term includes currency, cash or coins of any nation, as well as other financial or investment assets or credits, shall be considered an evasion of the prohibitions in subpart B. 580.408 Offshore transactions. The prohibitions contained in 580.201 apply to transactions by U.S. persons in locations outside the United States with respect to property in which the U.S. person knows, or has reason to know, that the Government of Haiti has or has had an interest since the effective date. 580.409 Transshipments through the United States prohibited. (a) The prohibitions in 580.206 apply to the importation into the United States, for transshipment or transit, of goods or services which are intended or destined for Haiti. (b) The prohibitions in 580.205 apply to the importation into the United States, for transshipment or transit, of goods or services of Haitian origin which are intended or destined for third countries. (c) Goods in which the Government of Haiti has an interest which are imported into or transshipped through the United States are blocked pursuant to 580.201. 580.410 Importation from third countries; transshipments. (a) Importation into the United States from third countries of goods containing raw materials or components of Haitian origin is not prohibited if those raw materials or components have been incorporated into manufactured products or substantially transformed in a third country. (b) Importation into the United States of goods of Haitian origin that have been transshipped through a third country without being incorporated into manufactured products or substantially transformed in a third country is prohibited. 580.411 Exportation to third countries; transshipments. Exportation of goods, technology (including technical data and other information), or services from the United States is prohibited if the exporter knows, or has reason to know, that the goods, technology or services are intended for transshipment to Haiti (including passage through, or storage in, intermediate destinations). The exportation from the United States of goods or technology intended specifically for incorporation or substantial transformation into a third-country product is also prohibited if the particular product is to be used in Haiti, is being specifically manufactured to fill a Haitian order, or if the manufacturer's sales of the particular product are predominantly to Haiti. 580.412 Importation into and release from bonded warehouse or foreign trade zone. The prohibitions in 580.205 apply to importation into a bonded warehouse or a foreign trade zone of the United States. However, 580.205 does not prohibit the release from a bonded warehouse or a foreign trade zone of goods of Haitian origin imported into a bonded warehouse or a foreign trade zone prior to the effective date of 580.205 or in a transaction authorized pursuant to this part after the effective date. Note: Pursuant to 580.201, property in which the Government of Haiti has an interest may not be released unless authorized or license by the Office of Foreign Assets Control. Subpart E--Licenses, Authorizations, and Statements of Licensing Policy 580.501 Effect of license or authorization. (a) No license or other authorization contained in this part, or otherwise issued by or under the direction of the Director of the Office of Foreign Assets Control, shall be deemed to authorize or validate any transaction effected prior to the issuance of the license, unless specifically provided in such license or authorization. (b) No regulation, ruling, instruction, or license authorizes any transaction prohibited under this part unless the regulation, ruling, instruction, or license is issued by the Office of Foreign Assets Control and specifically refers to this part. No regulation, ruling, instruction, or license referring to this part shall be deemed to authorize any transaction prohibited by any provision of this chapter unless the regulation, ruling, instruction or license specifically refers to such provision. (c) Any regulation, ruling, instruction or license authorizing any transaction otherwise prohibited under this part has the effect of removing a prohibition or prohibitions in subpart B from the transaction, but only to the extent specifically stated by its terms. Unless the regulation, ruling, instruction or license otherwise specifies, such an authorization does not create any right, duty, obligation, claim, or interest in, or with respect to, any property which would not otherwise exist under ordinary principles of law. 580.502 Exclusion from licenses and authorizations. The Director of the Office of Foreign Assets Control reserves the right to exclude any person from the operation of any license, or from the privileges therein conferred, or to restrict the applicability thereof with respect to particular persons, transactions or property or classes thereof. Such action shall be binding upon all persons receiving actual or constructive notice thereof. 580.503 Payments and transfers to blocked accounts in U.S. financial institutions. (a) Any payment of funds or transfer of credit or other assets, including any payment or transfer by any U.S. person outside the United States, to a blocked account in a U.S. financial institution located in the United States in the name of the Government of Haiti is hereby authorized, including incidental foreign exchange transactions, provided that such payment or transfer shall not be made from any blocked account if such payment or transfer represents, directly or indirectly, a transfer of any interest of the Government of Haiti to any other country or person. (b) This section authorizes transfer of the funds of a blocked demand deposit account to a blocked interest-bearing account under the same name or designation as was used for the demand deposit account, as required pursuant to 580.203 or at the instruction of the depositor, at any time. If such transfer is to a blocked account in a different U.S. financial institution, such transfer must be made to a blocked account in a U.S. financial institution located in the United States, and the transferee financial institution must furnish within 10 business days of the date of transfer, the notification described in paragraph (h) of this section to the Office of Foreign Assets Control, Blocked Assets Division. (c) This section does not authorize any transfer from a blocked account within the United States to an account held outside the United States. (d) This section does not authorize any payment or transfer to any blocked account held in a name other than that of the Government of Haiti where such government is the ultimate beneficiary of such payment or transfer. (e) This section does not authorize any payment or transfer of credit comprising an integral part of a transaction which cannot be effected without the subsequent issuance of a further license. (f) This section does not authorize the crediting of the proceeds of the sale of securities or other assets, held in a blocked account or a sub-account thereof, or the income derived from such securities or assets, to a blocked account or sub-account under any name or designation which differs from the name or designation of the specific blocked account or sub-account in which such securities or assets were or are held. (g) This section does not authorize any payment or transfer from a blocked account in a U.S. financial institution to a blocked account held under any name or designation which differs from the name or designation of the specific blocked account or sub-account from which the payment or transfer is made. (h) The authorization in paragraph (a) of this section is subject to the condition that written notification from the U.S. financial institution receiving an authorized payment or transfer is furnished to the Office of Foreign Assets Control, Blocked Assets Division, within 10 business days from the date of payment or transfer. This notification shall confirm that the payment or transfer has been deposited in a blocked account under the regulations in this part and shall provide the account number, the name and address of the Government of Haiti entity in whose name the account is held, the name and address of the transferee U.S. financial institution, the name and address of the transferor financial institution, the amount of the payment or transfer, and the name and telephone number of a contact person at the transferee financial institution from whom compliance information may be obtained. (i) This section authorizes the transfer of assets between blocked accounts in U.S. financial institutions at the instruction of the depositor for purposes of investment and reinvestment of assets in which the Government of Haiti has an interest, as authorized in 580.514. If such transfer is to a blocked account in a different U.S. financial institution, the transferee financial institution must furnish within 10 business days of the date of transfer the notification described in paragraph (h) of this section to the Office of Foreign Assets Control, Blocked Assets Division. 580.504 Importation of household and personal effects. (a) The importation of household and personal effects of Haitian origin, including baggage and articles for family use, of a person arriving in the United States directly or indirectly from Haiti is authorized. Articles included in such effects may be imported without limitation provided they were actually used by such person or family abroad, are not intended for any other person or for sale, and are not otherwise prohibited from importation. (b) Persons departing the United States for Haiti are authorized to export from the United States accompanying personal baggage and accompanying personal effects. 580.505 Transactions related to telecommunications authorized. All transactions of U.S. common carriers incident to the receipt or transmission of telecommunications between the United States and Haiti are authorized, provided any payment owed to the de facto regime in Haiti is paid into a blocked account in a U.S. financial institution. For purposes of this section, the term ``telecommunications'' shall mean telephone, telex, and telegraph transmissions, and transmissions for the gathering or broadcast of news. 580.506 Transactions related to mail authorized. All transactions by U.S. persons, including payment and transfers to common carriers incident to the receipt or transmission of mail between the United States and Haiti, are authorized. For the purposes of this section the term ``mail'' shall include parcels only to the extent the parcels contain goods exempt from this part or otherwise eligible for exportation to or importation from Haiti under a general or specific license. 580.507 Transactions related to informational materials. (a) All financial and other transactions directly incident to the physical importation or exportation of informational materials are authorized. (b) Transactions relating to the dissemination of informational materials are authorized, including remittance of royalties paid for informational materials that are reproduced, translated, subtitled, or dubbed. This section does not authorize the remittance of royalties or other payments relating to works not yet in being, or for marketing and business consulting services, or for artistic or other substantive alteration or enhancements to informational materials, as provided in 580.207(c). 580.508 Importation of certain machinery, parts and materials. (a) The importation into the United States through 11:59 p.m., e.s.t., December 5, 1991, of machinery owned or leased by U.S. persons and used in Haiti in the assembly or processing of articles, including spare parts for such machinery, is authorized. (b) The importation into the United States through 11:59 p.m., e.s.t., December 5, 1991, of parts or materials exported to Haiti prior to 11:59 p.m., e.s.t., November 5, 1991, which were intended to be assembled or processed into goods containing parts or materials exported from the United States, is authorized. Note to paragraphs (a) and (b): Transactions authorized by paragraphs (a) and (b) of this section have been completed prior to publication of this part. The text of this general license is included for the convenience of the user. (c) Specific licenses may be issued on a case-by-case basis authorizing the importation into the United States after 11:59 p.m., e.s.t., December 5, 1991, of machinery owned or leased by U.S. persons and used in Haiti in the assembly or processing of articles, including spare parts for such machinery, and parts or materials exported to Haiti prior to 11:59 p.m., e.s.t., November 5, 1991, which were intended to be assembled or processed into goods containing parts or materials exported from the United States. (d) Applications for specific licenses should be made in advance of the proposed importation from Haiti. Applications for specific licenses to import machinery should include a description of the machinery, information regarding the interest of U.S. persons in the machinery, and information regarding the use of the machinery in Haiti. Applications for specific licenses to import parts or materials should provide evidence of exportation to Haiti prior to the effective date and evidence that the goods into which they were to be assembled or processed would have contained parts exported from the United States prior to the effective date. Such evidence may include, without limitation, invoices, manifests, bills of lading, and other documentation describing the parts and materials and establishing shipment prior to the effective date. 580.509 Reserve accounts. (a) United States persons and U.S.-controlled Haitian entities that are required under 580.202 to make payments and transfers of certain funds owed to the Government of Haiti into Government of Haiti Account No. 021083909 at the Federal Reserve Bank of New York may elect instead to apply for a specific license authorizing them to establish a blocked reserve account on their books in the name of the Haitian governmental entity to whom the amount is owed. Specific licenses may be issued to permit the crediting of such reserve accounts for amounts due and owing to the Government of Haiti, which amounts shall include the principal amount of funds due, plus interest thereon, determined pursuant to paragraph (b) of this section, accrued from the later of October 4, 1991, or the date that timely payment to the Government of Haiti was required, to the date of crediting to the reserve account. In the case of funds already credited to Government of Haiti Account No. 021083909, specific licenses may be issued authorizing transfer of such amounts (including accrued interest) to reserve accounts established pursuant to this section. Such licenses are revocable and are conditioned upon continued compliance with the requirements of this part. Upon revocation of a license or at the direction of the Director of the Office of Foreign Assets Control, the credit balances in such reserve accounts must be funded and paid into Government of Haiti Account No. 021083909. (b) Amounts credited to reserve accounts pursuant to this section shall bear interest at a rate not less than the weekly average effective Federal Funds rate, as published by the Federal Reserve Board, applicable to each week of the period in which credit balances are maintained pursuant to this section. (c) If necessary to assure the availability of credit balances blocked in reserve accounts pursuant to this section, the Director of the Office of Foreign Assets Control may at any time require the immediate funding and payment of such blocked credit balances into Government of Haiti Account No. 021083909 at the Federal Reserve Bank of New York, as provided in 580.404, or the supplying of any form of security deemed necessary. (d) A person receiving a specific license under paragraph (a) of this section will be required to certify to the Office of Foreign Assets Control within 15 business days after receipt of that license that it has established the reserve account on its book as provided in paragraph (a). Unless otherwise provided, a person licensed to establish such a reserve account shall file monthly reports with the Office of Foreign Assets Control setting forth all credits to the reserve account, and interest payable in accordance with paragraph (b) of this section on the reserve account, together with the nature of the debt and the name of the Haitian governmental entity to which it is owed. The report shall also contain a certification from an authorized official of the entity submitting the report that the entity is in compliance with all other requirements of this part. 580.510 Exports of medicines and medical supplies. (a) Exportation from the United States to Haiti of medicines and medical supplies is authorized. No payment to the de facto regime in Haiti, or to anyone acting for or on behalf of the de facto regime, is authorized in connection with such shipment. (b) ``Medicines'' shall mean finished pharmaceutical compounds, mixtures or preparations ready for ingestion, injection or topical application. It shall not include: (1) Ingredients or materials used in the manufacture of such items; or (2) Personal hygiene items. (c) Specific licenses for commercial exportation to Haiti of: (1) Ingredients or materials used in the manufacture of medicines; and (2) Personal hygiene items may be issued on a case-by-case basis. [58 FR 4081, Jan. 13, 1993] 580.511 Diplomatic pouches authorized. The importation into the United States from Haiti, and the exportation from the United States to Haiti, of diplomatic pouches and their contents are permitted. 580.512 Importation of certain gifts authorized. The importation into the United States is authorized for goods of Haitian origin sent as gifts to persons in the United States where the value of the gift is not more than $100. 580.513 Certain exportations for the Organization of American States. All transactions ordinarily incident to the exportation of any goods or services from the United States for official or personal use by personnel employed by the diplomatic missions of the Organization of American States to Haiti are authorized, not for resale, and unless the exportation is otherwise prohibited by law. 580.514 Investment and reinvestment of Government of Haiti funds held in blocked accounts. (a) U.S. financial institutions are hereby authorized to invest and reinvest assets held in blocked accounts in the name of the Government of Haiti, subject to the following conditions: (1) The assets representing such investments and reinvestments are credited to a blocked account or sub-account which is in the name of the Government of Haiti and which is located in the United States or within the possession or control of a U.S. person; and (2) The proceeds of such investments and reinvestments are not credited to a blocked account or sub-account under any name or designation which differs from the name or designation of the specific blocked account or sub-account in which such funds or securities were held; and (3) No immediate financial or economic benefit accrues (e.g., through pledging or other use) to the de facto regime in Haiti. (b) (1) U.S. persons seeking to avail themselves of this authorization must register with the Office of Foreign Assets Control, Blocked Assets Section, before undertaking transactions authorized under this section. (2) Transactions conducted pursuant to this section must be reported to the Office of Foreign Assets Control, Blocked Assets Division, in a report filed no later than 10 business days following the last business day of the month in which the transactions occurred. 580.515 Importation from and exportation to assembly/production operations. (a) Specific licenses may be issued on a case-by-case basis authorizing certain exportations from the United States to Haiti, and importations into the United States from Haiti, by certain U.S. persons engaged in the assembly or processing in Haiti of articles for export to the United States which contain parts or materials exported from the United States. (b) A license must be issued prior to any exportation to or importation from Haiti. Applications should be directed to the Office of Foreign Assets Control and should provide the following information: (1) Identification of the U.S. importer and the assembly or processing operation in Haiti, including principal owners and managers. If either the U.S. importer or the assembly or processing operation in Haiti is owned by a Haitian person or persons, the name and address of such person(s) shall be provided; (2) A declaration that the Haitian assembly or processing operation was producing articles for exportation to the United States prior to November 6, 1991; (3) A declaration that no United States person identified in paragraph (b)(1) of this section has, since October 4, 1991, directly or indirectly paid or transferred funds to the de facto regime or otherwise engaged in any activity prohibited by Executive Orders 12775 and 12779; (4) A description of the method by which any amounts owed to the Government of Haiti (including the de facto regime) by United States persons identified in paragraph (b)(1) of this section in connection with the articles assembled or processed in Haiti are being paid (i.e., into an account at the Federal Reserve Bank of New York or as otherwise authorized by the Office of Foreign Assets Control); (5) A description of the article(s) assembled or produced in Haiti, as well as the parts or materials they contain which are exported from the United States; and (6) A description of any tariff preference which will be claimed with respect to the articles exported to the United States (e.g., a reduction in dutiable value under subheading 9802.22.80, HTS, or duty-free treatment under the Caribbean Basin Economic Recovery Act). (c) Unless otherwise provided for in the license, the license shall permit until its expiration date exportations and importations by the named licensee for the purposes and under the conditions set forth in the license. The licensee shall immediately advise the Office of Foreign Assets Control of any action or event which materially affects the accuracy or completeness of any statement or representation made in the license application and shall refrain from engaging in any transaction authorized by the license pending written authorization by the Office of Foreign Assets Control. (d) The licensee shall provide to the Office of Foreign Assets Control, Licensing Division, within 30 days of the close of each three month period following the date of issuance of the license a report summarizing each transaction authorized by the license which was undertaken during the reporting period. The report shall list the description and quantity of all exports and imports, as well as the dates and U.S. ports of exportation and importation. 580.516 Shipments to Haiti of certain foodstuffs and propane. (a) The exportation from the United States to Haiti of corn and corn flour, milk (including powdered milk), and edible tallow (i.e., hardened shortening, including lard) is authorized. No payments to the de facto regime in Haiti in connection with such export transactions are authorized. (b) Specific licenses may be issued on a case-by-case basis authorizing the exportation from the United States to Haiti of propane for noncommercial use. Applicants for licenses should describe the controls, if any, that would be exercised by the importer in Haiti to ensure that the propane imported into Haiti pursuant to the license would not be diverted to other uses. [57 FR 39604, Sept. 1, 1992] 580.517 Exportation of certain products for use in humanitarian projects. Specific licenses may be issued on a case-by-case basis authorizing the exportation from the United States to Haiti of paper and school supplies. Specific licenses may be issued on a case-by-case basis authorizing the exportation of generators and generator parts for use in humanitarian projects. [58 FR 4081, Jan. 13, 1993] Subpart F--Reports 580.601 Required records. (a) Except as otherwise provided, every person engaging in any transaction subject to the provisions of this part shall keep a full and accurate record of each transaction engaged in, regardless of whether such transaction is effected pursuant to license or otherwise, and such record shall be available for examination for at least 5 years after the date of such transaction. Except as otherwise provided, every person holding property subject to 580.201 shall keep a full and accurate record of such property, and such record shall be available for examination for the period of time that such property is blocked and for at least 5 years after the date such property is unblocked. (b) Any person, other than an individual, required to maintain records pursuant to this section, must designate an individual to be responsible for providing information concerning such records to the Office of Foreign Assets Control when so requested. 580.602 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, complete information relative to any transaction, regardless of whether such transaction is effected pursuant to license or otherwise, subject to the provisions of this part. Such reports may be required to 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 person required to make such reports. Reports with respect to transactions may be required either before or after such transactions are completed. The Director of the Office of Foreign Assets Control may, through any person or agency, conduct investigations, hold hearings, administer oaths, examine witnesses, receive evidence, take depositions, and require by subpoena the attendance and testimony of witnesses and the production of all books, papers, and documents relating to any matter under investigation, regardless of whether any report has been required or filed in connection therewith. 580.603 Registration of persons holding blocked property subject to 580.201. (a) Any individual holding property subject to 580.201 must register with the Office of Foreign Assets Control, Blocked Assets Division by the latter of April 30, 1992, or within 10 days after the date such property is received or becomes subject to 580.201. (b) Any person, other than an individual, holding property subject to 580.201 must register the person designated under 580.601(b) to be responsible for providing information concerning records under 580.601(a) with the Ofice of Foreign Assets Control, Blocked Assets Division by the later of April 30, 1992, or 10 days after the date such property is received and becomes subject to 580.201. Subpart G--Penalties 580.701 Penalties. (a) Attention is directed to section 206 of the International Emergency Economic Powers Act (50 U.S.C. 1705), which provides that: A civil penalty of not to exceed $10,000 may be imposed on any person who violates any license, order, or regulation issued under the International Emergency Economic Powers Act. Whoever willfully violates any license, order, or regulation issued under the International Emergency Economic Powers Act shall, upon conviction, be fined not more than $50,000, 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. Section 206 of the International Emergency Economic Powers Act is applicable to violations of any provision of this part 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 part or otherwise under the International Emergency Economic Powers Act. (b) 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 not more than $10,000 or imprisoned not more than five years, or both. (c) Violations of this part may also be subject to relevant provisions of the Customs laws and other applicable laws. 580.702 Prepenalty notice. (a) When required. If the Director of the Office of Foreign Assets Control (the ``Director'') has reasonable cause to believe that there has occurred a violation of any provision of this part or a violation of the provisions of any license, ruling, regulation, order, direction or instruction issued by or pursuant to the direction or authorization of the Director pursuant to this part or otherwise under the International Emergency Economic Powers Act, and the Director determines that further proceedings are warranted, he shall issue to the person concerned a notice of his intent to impose a monetary penalty. The prepenalty notice shall be issued whether or not another agency has taken any action with respect to this matter. (b) Contents--(1) Facts of violation. The prepenalty notice shall describe the violation, specify the laws and regulations allegedly violated, and state the amount of the proposed monetary penalty. (2) Right to make presentations. The prepenalty notice also shall inform the person of his right to make a written presentation within 30 days of mailing of the notice as to why a monetary penalty should not be imposed, or, if imposed, why it should be in a lesser amount than proposed. 580.703 Presentation responding to prepenalty notice. (a) Time within which to respond. The named person shall have 30 days from the date of mailing of the prepenalty notice to make a written presentation to the Director. (b) Form and contents of written presentation. The written presentation need not be in any particular form, but shall contain information sufficient to indicate that it is in response to the prepenalty notice. It should contain responses to the allegations in the prepenalty notice and set forth the reasons why the person believes the penalty should not be imposed or, if imposed, why it should be in a lesser amount than proposed. 580.704 Penalty notice. (a) No violation. If, after considering any presentations made in response to the prepenalty notice, the Director determines that there was no violation by the person named in the prepenalty notice, he promptly shall notify the person in writing of the determination and that no monetary penalty will be imposed. (b) Violation. If, after considering any presentations made in response to the prepenalty notice, the Director determines that there was a violation by the person named in the prepenalty notice, he promptly shall issue a written notice of the imposition of the monetary penalty to that person. 580.705 Referral to United States Department of Justice. In the event that the person named does not pay the penalty imposed pursuant to this subpart to make payment arrangements acceptable to the Director within 30 days of the mailing of the written notice of the imposition of the penalty, the matter shall be referred to the United States Department of Justice for appropriate action to recover the penalty in a civil suit in a Federal district court. 580.706 Seizure of shipments. Import shipments into the United States of goods of Haitian origin in violation of 580.205 shall be seized. No such importation shall be permitted to proceed, except as specifically authorized by the Office of Foreign Assets Control. Such shipments shall be subject to licensing, penalties, or seizure and forfeiture action pursuant to this part, the Customs laws, or other applicable provisions of law, depending on the circumstances. Subpart H--Procedures 580.801 Licensing. (a) General licenses. General licenses have been issued authorizing under appropriate terms and conditions certain types of transactions which are subject to the prohibitions contained in subpart B of this part. All such licenses are set forth in subpart E of this part. 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 may be required to file reports and statements in accordance with the instructions specified in those licenses. Failure to file such reports or statements will nullify the authority of the general license as to those persons. (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 licenses. (2) Applications for specific licenses. Applications for specific licenses to engage in any transactions prohibited by or pursuant to this part may be filed by letter with the Office of Foreign Assets Control. Any person having an interest in a transaction or proposed transaction may file an application for a license authorizing such transaction, but the applicant for a specific license is required to make full disclosure of all parties in interest to the transaction so that a decision on the application may be made with full knowledge of all relevant facts and so that the identity and location of the persons who know about the transaction may be easily ascertained in the event of inquiry. (3) Information to be supplied. The applicant must supply all information specified by relevant instructions and/or forms, and must fully disclose the names of all the parties who are concerned with or interested in the proposed transaction. If the application is filed by an agent, the agent must disclose the name of his principal(s). 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 reference. Applicants may be required to furnish such further information as is deemed necessary to a proper determination by the Office of Foreign Assets 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 decision. Arrangements for oral presentation should be made with the Office of Foreign Assets Control. (4) Effect of denial. The denial of a license does not preclude the reopening of an application or 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 licenses may be issued by the Secretary of the Treasury acting directly or through any specifically designated person, agency, or instrumentality. (c) Address. License applications, reports, and inquiries should be addressed to the appropriate division or individual within the Office of Foreign Assets Control, or to its Director, at the following address: Office of Foreign Assets Control, U.S. Department of the Treasury, 1500 Pennsylvania Avenue, NW., Annex, Washington, DC 20220. 580.802 Decisions The office of Foreign Assets Control will advise each applicant of the decision respecting filed applications. The decision of the Office of Foreign Assets Control acting on behalf of the Secretary of the Treasury with respect to an application shall constitute final agency action. 580.803 Amendment, modification, or revocation. The provisions of this part and any rulings; licenses, whether general or specific; authorizations; instructions; orders; or forms issued hereunder may be amended, modified, or revoked at any time. 580.804 Rulemaking. (a) In general, rulemaking by the Office of Foreign Assets Control involves foreign affairs functions of the United States, and for that reason is exempt from the requirements under the administrative Procedure Act (5 U.S.C. 553) for notice of proposed rulemaking, opportunity for public comment, and delay in effective date. Wherever possible, however, it is the practice of the Office of Foreign Assets Control to receive written submissions or hold informal consultations with interested parties before the issuance of any rule or other public document. (b) 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. 580.805 Delegation by the Secretary of the Treasury. Any action which the Secretary of the Treasury is authorized to take pursuant to Executive Orders 12775 and 12779 and any further Executive orders relating to the national emergency declared with respect to Haiti in Executive Order 12775 may be taken by the Director of the Office of Foreign Assets Control. 580.806 Rules governing availability of information. (a) The records of the Office of Foreign Assets Control which are required by the Freedom of Information Act (5 U.S.C. 552) to be made available to the public shall be made available in accordance with the definitions, procedures, requirements for payment of fees, and other provisions of the Regulations on the Disclosure of Records of the Office of the Secretary and of other bureaus and offices of the Department of the Treasury issued under 5 U.S.C. 552 and published as part 1 of this title. (b) The records of the Office of Foreign Assets Control required by the Privacy Act (5 U.S.C. 552a) to be made available to an individual shall be made available in accordance with the definitions, procedures, requirements for payment of fees, and other provisions of the Regulations on Disclosure of Records of the Departmental Office and of other bureaus and offices of the Department of the Treasury issued under 5 U.S.C. 552a and published as part 1 of this title. (c) Any form used in connection with the Haitian Transactions Regulations may be obtained in person from or by writing to the Office of Foreign Assets Control, U.S. Department of the Treasury, 1500 Pennsylvania Avenue, NW., Annex, Washington, DC 20220. 580.807 Customs procedures: merchandise specified in 580.205. (a) With respect to goods specified in 580.205 and not otherwise licensed or excepted from the scope of that section, appropriate Customs officers shall not accept or allow any: (1) Entry for consumption or warehouse (including any appraisement entry, any entry of goods imported in the mails, regardless of value, and any informal entries); (2) Entry for immediate exportation; (3) Entry for transportation and exportation; (4) Withdrawal from warehouse; (5) Admission, entry, transfer or withdrawal to or from a foreign trade zone; or (6) Manipulation or manufacture in a warehouse or in a foreign trade zone. (b) Customs officers shall accept or allow the importation of Haitian-origin goods under the procedures listed in paragraph (a) of this section if: (1) The merchandise was imported prior to 11:59 p.m., e.s.t., November 5, 1991, or (2) The merchandise was imported prior to 11:59 p.m., e.s.t., December 5, 1991, pursuant to 580.205(b) or 580.508 (a) or (b), or (3) A specific license pursuant to this part is presented, or (4) Instructions authorizing the transaction are received from the Office of Foreign Assets Control. (c) Whenever a specific license is presented to an appropriate Customs officer 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 appropriate Customs officers 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. The original copy of the specific license shall be presented to the appropriate Customs officers in respect of each such transaction and shall bear a notation in ink by the licensee or person presenting the license showing the description, quantity and value of the merchandise to be entered, withdrawn or otherwise dealt with. This notation shall be so placed and so written that there will exist no possibility of confusing it with anything placed on the license at the time of its issuance. If the license in fact authorizes the entry, withdrawal, or other transaction with regard to the merchandise, the appropriate Customs officer, or other authorized Customs employee, shall verify the notation by signing or initialing it after first assuring himself that it accurately describes the merchandise it purports to represent. The license shall thereafter be returned to the person presenting it and the additional copy of the entry, withdrawal or other appropriate document shall be forwarded by the appropriate Customs officer to the Office of Foreign Assets Control. (d) If it is unclear whether an entry, withdrawal or other action affected by this section requires a specific license, the appropriate Customs officer shall advise such person to communicate directly with the Office of Foreign Assets Control to request that instructions be sent to the Customs officer to authorize him to take action with regard thereto. Subpart I--Paperwork Reduction Act 580.901 Paperwork Reduction Act notice. The information collection requirements in 580.204(d), 580.503, 580.508, 580.509, 580.510, 580.514 580.515, 580.601, 580.602, 580.603, 580.703, and 580.801 have been approved by the Office of Management and Budget under the Paperwork Reduction Act and assigned control number 1505 - 0133.