[Code of Federal Regulations]

[Title 31, Volume 3]

[Revised as of July 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 31CFR537.406]



[Page 176]

 

                  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 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.