[Code of Federal Regulations]
[Title 31, Volume 2]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR550.409]

[Page 763-764]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
 CHAPTER V--OFFICE OF FOREIGN ASSETS CONTROL, DEPARTMENT OF THE TREASURY
 
PART 550_LIBYAN SANCTIONS REGULATIONS--Table of Contents
 
                        Subpart D_Interpretations
 
Sec. 550.409  Exports to third countries; transshipment.

    (a) Exports of goods or technology (including technical data and 
other information) from the United States to third countries are 
prohibited if the exporter knows, or has reason to know, that:
    (1) The goods or technology are intended for transshipment to Libya 
(including passage through, or storage in, intermediate destinations) 
without coming to rest in a third country and without being 
substantially transformed or incorporated into manufactured products in 
a third country, or
    (2) The exported goods are intended specifically for substantial 
transformation or incorporation in a third country into products to be 
used in Libya in the petroleum or petrochemical industry, or
    (3) The exported technology is intended specifically for use in a 
third country in the manufacture of, or for incorporation into, products 
to be used in Libya in the petroleum or petrochemical industry.
    (b) For the purposes of paragraph (a) of this section:
    (1) The scope of activities encompassed by the petroleum and 
petrochemical industries shall include, but

[[Page 764]]

not be limited to, the following activities: Oil, natural gas, natural 
gas liquids, or other hydrocarbon exploration (including geophysical and 
geological assessment activity), extraction, production, refining, 
distillation, cracking, coking, blending, manufacturing, and 
transportation; petrochemical production, processing, manufacturing, and 
transportation;
    (2) Exports subject to the prohibition in paragraph (a) of this 
section, include not only goods and technology for use in third-country 
products uniquely suited for use in the petroleum or petrochemical 
industry, such as oilfield services equipment, but also goods and 
technology for use in products, such as computers, office equipment, 
construction equipment, or building materials, which are suitable for 
use in other industries, but which are intended specifically for use in 
the petroleum or petrochemical industry; and
    (3) Goods and technology are intended specifically for a third-
country product to be used in Libya if the particular product is being 
specifically manufactured to fill a Libyan order or if the 
manufacturer's sales of the particular product are predominantly to 
Libya.
    (c) Specific licenses may be issued to authorize exports to third 
countries otherwise prohibited by paragraph (a)(2) of this section in 
appropriate cases, such as those involving extreme hardship or where the 
resulting third-country products will have insubstantial U.S. content.
    (d) Exports of goods or technology from the United States to third 
countries are not prohibited where the exporter has reasonable cause to 
believe that:
    (1) Except as otherwise provided in paragraph (a) of this section, 
the goods will be substantially transformed or incorporated into 
manufactured products before export to Libya, or
    (2) The goods will come to rest in a third country for purposes 
other than reexport to Libya, e.g., for purposes of restocking the 
inventory of a distributor whose sales of the particular goods are not 
predominantly to Libya, or
    (3) The technology will come to rest in a third country for purposes 
other than reexport to Libya.
    (e) Note: Exports or reexports of goods and technical data, or of 
the direct products of technical data (regardless of U.S. content), not 
prohibited by this part may require authorization from the U.S. 
Department of Commerce pursuant to the Export Administration Act of 
1979, as amended, 50 U.S.C. App. 2401 et seq., and the Export 
Administration Regulations Implementing that Act, 15 CFR parts 368 
through 399.

[51 FR 22803, June 23, 1986; 51 FR 25635, July 15, 1986]