31 C.F.R. Subpart D—Interpretations
Title 31 - Money and Finance: Treasury
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. 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. (a) Whenever a transaction licenced or authorized by or pursuant to this part results in the transfer of property (including any property interest) from a person whose property or property interests are blocked pursuant to §585.201, such property shall no longer be deemed to be property blocked pursuant to §585.201, unless there exists in the property another interest that is blocked pursuant to §585.201 or any other part of this chapter, 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 or attempted to be transferred to a person whose property or property interests are blocked pursuant to §585.201, such property shall be deemed to be property in which that person has an interest and therefore blocked. [60 FR 34146, June 30, 1995] No debits may be made to a blocked account to pay obligations to U.S. persons or other persons, including payment for goods, technology or services exported prior to the effective date, except as authorized pursuant to this part. No U.S. person may acquire or deal in any obligation, including bankers acceptances and debt of or guaranteed by the a person whose property or interests in property are blocked pursuant to §585.201, where the documents evidencing the obligation indicate, or the U.S. person has actual knowledge, that the underlying transaction is in violation of §585.201, §§585.204–585.212, and §§585.217–585.218. This interpretation does not apply to obligations arising from an underlying transaction licensed or otherwise authorized pursuant to this part. [58 FR 13201, Mar. 10, 1993, as amended at 60 FR 34146, June 30, 1995] (a) The prohibition in §585.210 applies to the unlicenced renewal of credits or loans held in the name of a person whose property or interests in property are blocked pursuant to §585.201 that were in existence on the effective date, whether by affirmative action or operation of law. (b) The prohibition in §585.210 applies to credits or loans extended in any currency. [58 FR 13201, Mar. 10, 1993, as amended at 60 FR 34146, June 30, 1995] Except as otherwise specified, payments are authorized in connection with transactions authorized in or pursuant to subpart E. (a) The prohibitions contained in §§585.201 and 585.206 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 s person whose property or interests in property are blocked pursuant to §585.201 has or has had an interest since the effective date specified in §585.301, or that such property is held in the name of a person whose property or interests in property are blocked pursuant to §585.201. (b) Prohibited transactions include, but are not limited to, importation into locations outside the United States of, or dealings within such locations in, goods or services originating in the FRY (S&M). (c) Examples: (1) A U.S. person may not, within the United States or abroad, purchase, sell, finance, insure, transport, act as a broker for the sale or transport of, or otherwise deal in, shoes made in the FRY (S&M). (2) A U.S. person may not, within the United States or abroad, conduct transactions of any nature whatsoever with an entity that the U.S. person knows or has reason to know is operated from the FRY (S&M) or owned or controlled by the Government of the FRY (S&M). [58 FR 13201, Mar. 10, 1993, as amended at 60 FR 34146, June 30, 1995] (a) The prohibitions in §585.205 apply to the importation into the United States, for transshipment or transit, of goods which are intended or destined for the FRY (S&M), or an entity operated from the FRY (S&M), or to the Government of the FRY (S&M) in any country. (b) The prohibitions in §585.204 apply to the importation into the United States, for transshipment or transit, of goods originating in the FRY (S&M) which are intended or destined for third countries. (c) Goods in which the Government of the FRY (S&M) has an interest that are imported into or transshipped through the United States are blocked pursuant to §585.201. Importation into the United States from third countries of goods containing raw materials or components originating in the FRY (S&M) is prohibited. In light of the universal prohibition in UNSC Resolution 757 on the importation of goods exported from the FRY (S&M) after May 30, 1992, substantial transformation or incorporation of such goods in a third country does not exempt the third-country products from the prohibitions contained in this part. Exportation of goods or technology (including technical data and other information) from the United States to third countries is prohibited if the exporter knows, or has reason to know, that the goods or technology are intended for reexportation or transshipment to the FRY (S&M), including passage through, or storage in, intermediate destinations. The exportation of goods and 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 the FRY (S&M), is being specifically manufactured to fill an order from the FRY (S&M), or if the manufacturer's sales of the particular product are predominantly to the FRY (S&M). Section 585.204 does not prohibit the release from a bonded warehouse or foreign trade zone of goods originating in the FRY (S&M) imported into a bonded warehouse or a foreign trade zone either prior to the effective date or in a transaction authorized pursuant to this part after the effective date. (Note: property blocked pursuant to §585.201 may not be released unless authorized or licensed by the Office of Foreign Assets Control.) [58 FR 13201, Mar. 10, 1993, as amended at 60 FR 34146, June 30, 1995] Goods originating in the FRY (S&M) imported into the United States pursuant to an authorization or license are not blocked by the provisions of §585.201. However, any payment in connection with such importation is subject to the prohibitions contained in §§585.201 and 585.210. [58 FR 13201, Mar. 10, 1993, as amended at 60 FR 34146, June 30, 1995] Services performed in the FRY (S&M), or by the Government of the FRY (S&M), as defined in §585.312, are imported into the United States when the benefit of such services is received in the United States. Services performed in the FRY (S&M) or by the Government of the FRY (S&M) for the benefit of a U.S. person outside the United States are prohibited pursuant to §§585.201 and 585.206. Services provided in the United States by a national of the FRY (S&M) resident in the United States and not acting on behalf of the Government of the FRY (S&M) are not imported into the United States. A setoff against blocked property (including a blocked account), whether by a U.S. bank or other U.S. person, is a prohibited transfer under §585.201 if effected after May 30, 1992. (a) The prohibition on the exportation of services contained in §585.205 applies to services performed: (1) In the United States; (2) Outside the United States by an entity located in the United States, including its overseas branches; or (3) Outside the United States by an individual U.S. person ordinarily resident in the United States; on behalf of the Government of the FRY (S&M), or where the benefit of such services is otherwise received in the FRY (S&M). The benefit of services performed anywhere in the world on behalf of the Government of the FRY (S&M), including services performed for a controlled entity or specially designated national of the Government of the FRY (S&M), is presumed to be received in the FRY (S&M). (b) The prohibitions contained in §§585.201 and 585.209 apply to services performed by U.S. persons, wherever located: (1) On behalf of the Government of the FRY (S&M); (2) With respect to property interests of the Government of the FRY (S&M); or (3) In support of an industrial or other commercial or governmental project in the FRY (S&M). (c) Example: U.S. persons may not, without specific authorization from the Office of Foreign Assets Control, represent an individual or entity with respect to contract negotiations, contract performance, commercial arbitration, or other business dealings with the Government of the FRY (S&M). See §585.517 on licensing policy with regard to the provision of certain legal services. (a) Any transaction ordinarily incident to a licensed transaction and necessary to give effect thereto is also authorized, except a transaction by an unlicensed, blocked person or involving an unlicensed debit to a blocked account. (b) Example: A license authorizing an exportation of goods to the FRY (S&M) also authorizes all activities by other parties required to complete the sale, including transactions by the buyer, brokers, transfer agents, banks, etc. Any vessel in which a majority or controlling interest is held by a person or entity in, or operating from the FRY (S&M) shall be considered as a vessel of the FRY (S&M) regardless of the flag under which the vessel sails. [58 FR 35829, July 1, 1993] Executive Order 12846 does not affect the provisions of licenses and authorizations issued pursuant to Executive Order 12808, 12810 or 12831 or this part by the Office of Foreign Assets Control and in force as of 12:01 a.m. EDT, April 26, 1993, except as such licenses or authorizations are thereafter terminated, modified or suspended by the Director, Office of Foreign Assets Control. [58 FR 35829, July 1, 1993] Sections 585.201(c) and 585.218(b) prohibit U.S. financial institutions from committing or transfering, directly or indirectly, funds or other financial or economic resources to or for the benefit of any person whose property or interests in property are blocked pursuant to §585.201(c). [60 FR 34146, June 30, 1995]
Title 31: Money and Finance: Treasury
PART 585—FEDERAL REPUBLIC OF YUGOSLAVIA (SERBIA AND MONTENEGRO) AND BOSNIAN SERB-CONTROLLED AREAS OF THE REPUBLIC OF BOSNIA AND HERZEGOVINA SANCTIONS REGULATIONS
Subpart D—Interpretations
§ 585.401 Reference to amended sections.
§ 585.402 Effect of amendment.
§ 585.403 Termination and acquisition of an interest in blocked property.
§ 585.404 Payments from blocked accounts to U.S. exporters and for other obligations prohibited.
§ 585.405 Acquisition of instruments including bankers acceptances.
§ 585.406 Extensions of credits or loans.
§ 585.407 Payments in connection with certain authorized transactions.
§ 585.408 Offshore transactions.
§ 585.409 Transshipments through the United States prohibited.
§ 585.410 Imports from third countries of goods originating in the FRY (S&M); transshipments.
§ 585.411 Exports to third countries; transshipments.
§ 585.412 Release of goods originating in the FRY (S&M) from a bonded warehouse or foreign trade zone.
§ 585.413 Imports of goods originating in the FRY (S&M), and purchases of goods from the FRY (S&M).
§ 585.414 Services performed in the Federal Republic of Yugoslavia (Serbia and Montenegro) or by the Government of the FRY (S&M).
§ 585.415 Setoffs prohibited.
§ 585.416 Exportation of services; performance of service contracts; legal services.
§ 585.417 Transactions incidental to a licensed transaction.
§ 585.418 Vessels of the Federal Republic of Yugoslavia (Serbia and Montenegro).
§ 585.419 Effect of E.O. 12846 on outstanding licenses and authorizations.
§ 585.420 Prohibited transfer of funds involving those areas of the Republic of Bosnia and Herzegovina under the control of Bosnian Serb forces.
