[Code of Federal Regulations]

[Title 15, Volume 2]

[Revised as of January 1, 2006]

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

[CITE: 15CFR700.71]



[Page 96-97]

 

                  TITLE 15--COMMERCE AND FOREIGN TRADE

 

  CHAPTER VII--BUREAU OF INDUSTRY AND SECURITY, DEPARTMENT OF COMMERCE

 

PART 700_DEFENSE PRIORITIES AND ALLOCATIONS SYSTEM--Table of Contents

 

                          Subpart J_Compliance

 

Sec. 700.71  Audits and investigations.



    (a) Audits and investigations are official examinations of books, 

records, documents, other writings and information to ensure that the 

provisions of the Defense Production Act, the Selective Service Act and 

related statutes, this regulation, and official actions have been 

properly followed. An audit or investigation may also include interviews 

and a systems evaluation to detect problems or failures in the 

implementation of this regulation.

    (b) When undertaking an audit, investigation, or other inquiry, the 

Department of Commerce shall:

    (1) Define the scope and purpose in the official action given to the 

person under investigation, and

    (2) Have ascertained that the information sought or other adequate 

and authoritative data are not available from any Federal or other 

responsible agency.

    (c) In administering this regulation, Commerce may issue the 

following documents which constitute official actions:

    (1) Administrative Subpoenas. An Administrative Subpoena requires a 

person to appear as a witness before an official designated by the 

Department of Commerce to testify under oath on matters of which that 

person has knowledge relating to the enforcement or the administration 

of the Defense Production Act, the Selective Service Act and related 

statutes, this regulation, or official actions. An Administrative 

Subpoena may also require the production of books, papers, records, 

documents and physical objects or property.

    (2) Demand for Information. A Demand for Information requires a 

person to furnish to a duly authorized representative of the Department 

of Commerce any information necessary or appropriate to the enforcement 

or the administration of the Defense Production Act, the Selective 

Service Act and related statutes, this regulation, or official actions.

    (3) Inspection Authorizations. An Inspection Authorization requires 

a person to permit a duly authorized representative of Commerce to 

interview the person's employees or agents, to inspect books, records, 

documents, other writings and information in the person's possession or 

control at the place where that person usually keeps them, and to 

inspect a person's property when such interviews and inspections are 

necessary or appropriate to the enforcement or the administration of the 

Defense Production Act, the Selective Service Act and related statutes, 

this regulation, or official actions.

    (d) The production of books, records, documents, other writings and 

information will not be required at any place other than where they are 

usually kept if, prior to the return date specified in the 

Administrative Subpoena or Demand for Information, a duly authorized 

official of Commerce is furnished with copies of such material that are 

certified under oath to be true copies. As an alternative, a person may 

enter into a stipulation with a duly authorized official of Commerce as 

to the content of the material.

    (e) An Administrative Subpoena, Demand for Information, or 

Inspection Authorization, shall include the name, title or official 

position of the person to be served, the evidence sought to be adduced, 

and its general relevance to the scope and purpose of the audit, 

investigation, or other inquiry. If employees or agents are to be 

interviewed; if books, records, documents, other writings, or 

information are to be produced; or if property is to be inspected; the 

Administrative Subpoena, Demand for Information, or Inspection 

Authorization will describe them with particularity.

    (f) Service of documents shall be made in the following manner:

    (1) Service of a Demand for Information or Inspection Authorization 

shall be made personally, or by Certified Mail--Return Receipt Requested 

at the person's last known address. Service of an Administrative 

Subpoena shall be made personally. Personal service may also be made by 

leaving a copy of the document with someone of suitable age and 

discretion at the person's last known dwelling or place of business.

    (2) Service upon other than an individual may be made by serving a 

partner, corporate officer, or a managing or general agent authorized by 

appointment or by law to accept service of process. If an agent is 

served, a copy of



[[Page 97]]



the document shall be mailed to the person named in the document.

    (3) Any individual 18 years of age or over may serve an 

Administrative Subpoena, Demand for Information, or Inspection 

Authorization. When personal service is made, the individual making the 

service shall prepare an affidavit as to the manner in which service was 

made and the identity of the person served, and return the affidavit, 

and in the case of subpoenas, the original document, to the issuing 

officer. In case of failure to make service, the reasons for the failure 

shall be stated on the original document.



[49 FR 30414, July 30, 1984. Redesignated at 54 FR 601, Jan. 9, 1989, as 

amended at 63 FR 31924, June 11, 1998]