[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: 31CFR550.409]



[Page 281-282]

 

                  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 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



[[Page 282]]



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]