[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: 31CFR560.420]

[Page 779]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
 CHAPTER V--OFFICE OF FOREIGN ASSETS CONTROL, DEPARTMENT OF THE TREASURY
 
PART 560--IRANIAN TRANSACTIONS REGULATIONS--Table of Contents
 
                       Subpart D--Interpretations
 
Sec. 560.420  Reexportation by non-U.S. persons of certain foreign-made products containing U.S.-origin goods or technology.

    For purposes of satisfying the de minimis content rule in 
Sec. 560.205(b)(2):
    (a) U.S.-origin goods (excluding software) falling within the 
definition in Sec. 560.205 must comprise less than 10 percent of the 
foreign-made good (excluding software);
    (b) U.S.-origin software falling within the definition in 
Sec. 560.205 must comprise less than 10 percent of the foreign-made 
software;
    (c) U.S.-origin technology falling within the definition in 
Sec. 560.205 must comprise less than 10 percent of the foreign-made 
technology; and,
    (d) In cases involving a complex product made of a combination of 
U.S.-origin goods (including software) and technology falling within the 
definition in Sec. 560.205, the aggregate value of all such U.S.-origin 
goods (including software) and such technology contained in the foreign-
made product must be less than 10 percent of the total value of the 
foreign-made product.

    Notes to Sec. 560.420. 1. Notwithstanding the exceptions contained 
in Sec. 560.205(b)(1) and (b)(2) and this section, a reexportation to 
Iran or the Government of Iran of U.S.-origin items falling within the 
definition in Sec. 560.205 is prohibited if those U.S.-origin goods 
(including software) or that technology have been substantially 
transformed or incorporated into a foreign-made end product which is 
destined to end uses or end users prohibited under regulations 
administered by other U.S. Government agencies. See, e.g., the Export 
Administration Regulations (31 CFR 736.2(b)(5), 744.2, 744.3, 744.4, 
744.7, and 744.10); International Traffic in Arms Regulations (22 CFR 
123.9).
    2. A reexportation not prohibited by Sec. 560.205 may nevertheless 
require authorization by the U.S. Department of Commerce, the U.S. 
Department of State or other agencies of the U.S. Government.
    3. The provisions of Sec. 560.205 and this section apply only to 
persons other than United States persons.

[64 FR 20173, Apr. 26, 1999]