[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: 31CFR560.420]



[Page 307]

 

                  TITLE 31--MONEY AND FINANCE: TREASURY

 

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

 

PART 560_IRANIAN TRANSACTIONS REGULATIONS--Table of Contents

 

                        Subpart D_Interpretations

 

Sec. 560.420  Reexportation by non-U.S. persons of certain foreign-made 

products containing U.S.-origin goods or technology.



    For purposes of satisfying the de minimis content rule in Sec. 

560.205(b)(2):

    (a) U.S.-origin goods (excluding software) falling within the 

definition in Sec. 560.205 must comprise less than 10 percent of the 

foreign-made good (excluding software);

    (b) U.S.-origin software falling within the definition in Sec. 

560.205 must comprise less than 10 percent of the foreign-made software;

    (c) U.S.-origin technology falling within the definition in Sec. 

560.205 must comprise less than 10 percent of the foreign-made 

technology; and,

    (d) In cases involving a complex product made of a combination of 

U.S.-origin goods (including software) and technology falling within the 

definition in Sec. 560.205, the aggregate value of all such U.S.-origin 

goods (including software) and such technology contained in the foreign-

made product must be less than 10 percent of the total value of the 

foreign-made product.



    Notes to Sec. 560.420. 1. Notwithstanding the exceptions contained 

in Sec. 560.205(b)(1) and (b)(2) and this section, a reexportation to 

Iran or the Government of Iran of U.S.-origin items falling within the 

definition in Sec. 560.205 is prohibited if those U.S.-origin goods 

(including software) or that technology have been substantially 

transformed or incorporated into a foreign-made end product which is 

destined to end uses or end users prohibited under regulations 

administered by other U.S. Government agencies. See, e.g., the Export 

Administration Regulations (31 CFR 736.2(b)(5), 744.2, 744.3, 744.4, 

744.7, and 744.10); International Traffic in Arms Regulations (22 CFR 

123.9).

    2. A reexportation not prohibited by Sec. 560.205 may nevertheless 

require authorization by the U.S. Department of Commerce, the U.S. 

Department of State or other agencies of the U.S. Government.

    3. The provisions of Sec. 560.205 and this section apply only to 

persons other than United States persons.



[64 FR 20173, Apr. 26, 1999]