[Code of Federal Regulations]
[Title 31, Volume 2]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR537.406]

[Page 678-679]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
 CHAPTER V--OFFICE OF FOREIGN ASSETS CONTROL, DEPARTMENT OF THE TREASURY
 
PART 537--BURMESE SANCTIONS REGULATIONS--Table of Contents
 
                       Subpart D--Interpretations
 
Sec. 537.406  General supervision and guarantee.

    Section 537.201 prohibits the entry by a U.S. person into a contract 
providing for the general supervision and guarantee of another person's 
performance

[[Page 679]]

of a contract that includes the economic development of resources 
located in Burma, if the U.S. person's contract is entered into on or 
after the effective date, unless undertaken pursuant to, or in exercise 
of rights under, a pre-effective date agreement. For the purposes of 
Sec. 537.201, only the entry into contracts for supervision and 
guarantee at the top level of project management, such as entry into a 
contract with a development project's sponsor or owner to become a prime 
contractor or general manager for a development project, will be 
considered new investment in Burma. By contrast, subcontracts to provide 
goods, services, or technology to a prime contractor or general manager 
of a development project are exempt from the prohibitions of this part 
pursuant to Sec. 537.204 unless:
    (a) The functional scope of the subcontractor's obligations is 
substantially similar to that of a prime contractor's or general 
manager's obligations; or
    (b) The consideration for such subcontracts includes a share of 
ownership in, or participation in the royalties, earnings or profits of, 
the economic development of resources located in Burma.