[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR25.701]

[Page 481-482]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 25_FOREIGN ACQUISITION--Table of Contents
 
                     Subpart 25.7_Prohibited Sources
 
Sec.  25.701  Restrictions.


    (a)(1) The Government generally does not acquire supplies or 
services that cannot be imported lawfully into the United States. 
Therefore, except as provided in paragraph (a)(2) of this section, even 
for overseas use, agencies and their contractors and subcontractors must 
not acquire any supplies or services originating from sources within, or 
that were located in or transported from or through
    (i) Cuba (31 CFR part 515);
    (ii) Iran (31 CFR part 560);
    (iii) Iraq (31 CFR part 575);
    (iv) Libya (31 CFR part 550);
    (v) North Korea (31 CFR part 500);
    (vi) Sudan (31 CFR part 538);
    (vii) Territory of Afghanistan controlled by the Taliban (Executive 
Order 13129 of July 4, 1999, Blocking Property and Prohibiting 
Transactions With the Taliban); or
    (viii) Serbia, excluding the territory of Kosovo (Executive Order 
13121 of April 30, 1999, Blocking Property of the Governments of the 
Federal Republic of Yugoslavia (Serbia and Montenegro), the Republic of 
Serbia, and the Republic of Montenegro, and Prohibiting Trade 
Transactions Involving the Federal Republic of Yugoslavia (Serbia and 
Montenegro) in Response to the Situation in Kosovo).
    (2)(i) Unless agency procedures require a higher level of approval, 
the contracting officer may, in unusual circumstances, acquire for use 
outside the United States supplies and services restricted in paragraph 
(a)(1) of this section. Examples of unusual circumstances are an 
emergency or when the supplies or services are not otherwise available 
and a substitute is not acceptable.
    (ii) The contracting officer must provide documentation in the 
contract file whenever this exception is used.
    (b) Agencies and their contractors and subcontractors must not 
acquire any supplies or services from entities controlled by the 
Government of Iraq or other specially designated nationals (31 CFR 
Chapter V, Appendix A).

[64 FR 72419, Dec. 27, 1999, as amended at 65 FR 36028, June 6, 2000]

    Effective Date Note: At 68 FR 56686, Oct. 1, 2003, Sec.  25.701 was 
revised, effective Oct. 31, 2003. For the convenience of the user, the 
revised text is set forth below:

Sec.  25.701  Restrictions.

    (a) Except as authorized by the Office of Foreign Assets Control 
(OFAC) in the Department of the Treasury, agencies and their contractors 
and subcontractors must not acquire any supplies or services if any 
proclamation, Executive order, or statute administered by OFAC, or if 
OFAC's implementing regulations at 31 CFR chapter V, would prohibit such 
a transaction by a person subject to the jurisdiction of the United 
States.
    (b) Except as authorized by OFAC, most transactions involving Cuba, 
Iran, Libya,

[[Page 482]]

and Sudan are prohibited, as are most imports from North Korea into the 
United States or its outlying areas. In addition, lists of entities and 
individuals subject to economic sanctions are included in OFAC's List of 
Specially Designated Nationals and Blocked Persons at http://
www.epls.gov/Terlist1.html. More information about these restrictions, 
as well as updates, is available in OFAC's regulations at 31 CFR chapter 
V and/or on OFAC's Web site at http://www.treas.gov/ofac.