[Code of Federal Regulations]
[Title 22, Volume 1]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 22CFR10.735-202]

[Page 51-52]
 
                       TITLE 22--FOREIGN RELATIONS
 
                     CHAPTER I--DEPARTMENT OF STATE
 
PART 10--EMPLOYEE RESPONSIBILITIES AND CONDUCT--Table of Contents
 
 Subpart B--Ethical and Other Conduct and Responsibilities of Employees
 
Sec. 10.735-202  Gifts, entertainment, and favors.

    (a) Acceptance prohibited. Except as provided in paragraphs (b), 
(c), and (d) of this section, an employee shall not solicit or accept, 
directly or indirectly, any gift, gratuity, favor, entertainment, loan, 
or any other thing of monetary value, from a person who:
    (1) Has, or is seeking to obtain, contractual or other business or 
financial relations with the employee's agency;
    (2) Conducts operations or activities that are regulated by the 
employee's agency;
    (3) Has interests that may be substantially affected by the 
performance or nonperformance of the employee's official duty; or
    (4) Appears to be offering the gift with the hope or expectation of 
obtaining advantage or preferment in dealing with the U.S. Government 
for any purpose.
    (b) Acceptance permitted. The provisions of paragraph (a) of this 
section do not apply to:
    (1) Gifts, gratuities, favors, entertainments, loans, or any other 
thing of monetary value received on account of close family or personal 
relationships when the circumstances make it clear that it is that 
relationship rather than the business of the persons concerned which is 
the motivating factor;
    (2) Acceptance of loans from banks or other financial institutions 
on customary terms to finance proper and usual activities of employees, 
such as home mortgage loans;
    (3) Acceptance of unsolicited advertising or promotional material, 
such as pens, pencils, note pads, calendars, and other items of nominal 
intrinsic value;
    (4) Acceptance of rates and discounts offered to employees as a 
class.
    (c) Acceptance permitted for State and ICA employees. For State and 
ICA employees the provisions of paragraph (a) of this section do not 
apply to: Acceptance of food and refreshments of nominal value on 
infrequent occasions in the ordinary course of a luncheon or dinner 
meeting or other meeting or on an inspection tour where an employee may 
properly be in attendance.
    (d) Acceptance permitted for AID employees. For AID employees the 
provisions of paragraph (a) of this section do not apply in the 
following situations:
    (1) Acceptance of food, refreshments, or entertainment of nominal 
value on infrequent occasions offered in the ordinary course of 
luncheons, dinners, or other meetings and gatherings hosted by foreign 
governments or agencies and officials thereof, embassies, and 
international organizations, where the primary purpose of the function 
is representational or social, rather than the transaction of business. 
Where the primary purpose of the function is the transaction of 
business, acceptance is not permitted, except if there is justification 
and reporting in accordance with paragraph (d)(4) of this section.
    (2) Participation in widely attended lunches, dinners, and similar 
gatherings sponsored by industrial, technical, and professional 
associations for

[[Page 52]]

the discussion of matters of mutual interest to Government and industry.
    (3) Acceptance of food, refreshments, or entertainment in the 
unusual situation where the employee, by virtue of the location of the 
person, firm, corporation, or other entity, or the regulations governing 
its dining facilities, finds it inconvenient or impracticable not to 
accept the offer. Each case of acceptance shall be reported in 
accordance with the requirement of paragraph (d)(4) of this section. In 
no other case shall employees accept food, refreshments, or 
entertainment from private corporations, entities, firms, or individual 
contractors at occasions which are other than widely attended functions 
whose purposes are unrelated to Agency business.
    (4) In exceptional circumstances where acceptance of food, 
refreshments, or entertainment is not authorized by paragraphs (d) (1), 
(2), and (3) of this section, but where, in the judgment of the 
individual concerned, the Government's interest would be served by such 
acceptance directly or indirectly from any foreign government, agency, 
or official thereof or a private person, firm, corporation, or other 
entity which is engaged or is endeavoring to engage in business 
transactions of any sort with AID, an employee may accept the offer: 
Provided, That a report of the circumstances, together with the 
employee's statement as to how the Government's interests were served, 
will be made within 48 hours to the employee's supervisor, or, if the 
employee is serving abroad, or on temporary duty abroad, to the Mission 
Director.
    (e) Gifts to superiors. An employee shall for a gift to an official 
superior, make a donation as a gift to an official superior, or accept a 
gift from an employee receiving less pay than the employee (5 U.S.C. 
7351). However, this paragraph does not prohibit a voluntary gift of 
nominal value or donation in a nominal amount made on a special occasion 
such as marriage, illness, or retirement.
    (f) Neither this section nor Sec. 10.735-204 precludes an employee 
from receipt of bona fide reimbursement, unless prohibited by law, for 
expenses of travel and such other necessary subsistence as is compatible 
with this part for which no Government payment or reimbursement is made. 
However, this paragraph does not allow an employee to be reimbursed, or 
payment to be made on the employee's behalf, for excessive personal 
living expenses, gifts, entertainment, or other personal benefits, nor 
does it allow an employee to be reimbursed by a person for travel on 
official business under agency orders when reimbursement is proscribed 
by Decision B-128527 of the Comptroller General dated March 7, 1967.