[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: 31CFR538.407]



[Page 190-191]

 

                  TITLE 31--MONEY AND FINANCE: TREASURY

 

 CHAPTER V--OFFICE OF FOREIGN ASSETS CONTROL, DEPARTMENT OF THE TREASURY

 

PART 538_SUDANESE SANCTIONS REGULATIONS--Table of Contents

 

                        Subpart D_Interpretations

 

Sec. 538.407  Facilitation by a United States person.



    (a) The prohibition contained in Sec. 538.206 against facilitation 

by a United States person of the exportation or reexportation of goods, 

technology, or services between Sudan and any destination (including the 

United States) bars any unlicensed action by a U.S. person that assists 

or supports trading activity with Sudan by any person. Facilitation of a 

trade or financial transaction that could be engaged in directly by a 

U.S. person or from the United States consistent with the prohibitions, 

general licenses and exemptions contained in this part is not 

prohibited. Activity of a purely clerical or reporting nature that does 

not further trade or financial transactions with Sudan or the Government 

of Sudan is not considered prohibited facilitation. For example, 

reporting on the results of a subsidiary's trade with Sudan is not 

prohibited, while financing or insuring that trade or warranting the 

quality of goods sold by a subsidiary to the Government of Sudan 

constitutes prohibited facilitation.

    (b) To avoid potential liability for U.S. persons under this part, a 

U.S. parent corporation must ensure that its foreign subsidiaries act 

independently of any U.S. person with respect to all transactions and 

activities relating to the exportation or reexportation of goods, 

technology, or services between Sudan and any other location including 

but not limited to business and legal planning; decision making; 

designing, ordering or transporting goods; and financial, insurance, and 

other risks. See Sec. 538.505 with respect to exports of, inter alia, 

certain legal services benefitting Sudan.

    (c) No U.S. person may change its policies or operating procedures, 

or those of a foreign affiliate or subsidiary, in order to enable a 

foreign entity owned or controlled by U.S. persons to enter into a 

transaction that could not be entered into directly by a



[[Page 191]]



U.S. person or from the United States pursuant to this part.

    (d) No U.S. person may refer to a foreign person purchase orders, 

requests for bids, or similar business opportunities involving Sudan or 

the Government of Sudan to which the United States person could not 

directly respond as a result of the prohibitions contained in this part.