[Code of Federal Regulations]
[Title 31, Volume 3]
[Revised as of July 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR800.601]

[Page 709-710]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
  CHAPTER VIII--OFFICE OF INTERNATIONAL INVESTMENT, DEPARTMENT OF THE 
                                TREASURY
 
PART 800_REGULATIONS PERTAINING TO MERGERS, ACQUISITIONS, AND TAKEOVERS BY 
 
                      Subpart F_Presidential Action
 
Sec. 800.601  Statutory time frame, standards for Presidential action, and 


permissible actions under section 721.

    (a) The President shall announce his decision to take action 
pursuant to section 721 no later than the fifteenth day after an 
investigation is completed, or, if the fifteenth day is not a business 
day, no later than the next business day following the fifteenth day.
    (b) The President may exercise the authority conferred by section 
721(d) if the President makes the findings required by section 721(e), 
namely, that--
    (1) There is credible evidence that leads the President to believe 
that the foreign interest exercising control

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might take action that threatens to impair the national security, and
    (2) Provisions of law, other than section 721 and the International 
Emergency Economic Powers Act (50 U.S.C. 1701-1706), do not in the 
President's judgment provide adequate and appropriate authority for the 
President to protect the national security in the matter before the 
President.
    The President's findings under section 721(d) shall not be subject 
to judicial review.
    (c) Under section 721 (d) and (e), the President:
    (1) Is empowered to take such action for such time as the President 
considers appropriate to suspend or prohibit any acquisition subject to 
section 721 that is the subject of a recommendation or recommendations 
by the Committee; and
    (2) Is empowered to direct the Attorney General to seek appropriate 
relief, including divestment relief, in the district courts of the 
United States in order to implement and enforce section 721.
    (d) All authority available to the President under section 721(d), 
including divestment authority, shall remain available at the discretion 
of the President in respect of acquisitions which have been concluded at 
any time on or after the effective date, but only if the purpose for 
which divestment or other appropriate relief is sought is based on 
facts, conditions, or circumstances existing at the time the transaction 
was concluded. Such authority shall not be exercised if:
    (1) The Committee, through its Staff Chairman, has in writing 
advised a party (or the parties) that a particular transaction, with 
respect to which voluntary notice was attempted, was not subject to 
section 721;
    (2) The Committee has previously determined under Sec. 800.502 not 
to undertake an investigation of the acquisition when proposed, pending, 
or completed; or
    (3) The President has previously determined not to exercise his 
authority under section 721 with respect to that acquisition.
    (e) Notwithstanding any other provision in these regulations, in any 
case where the parties to an acquisition submitted false or misleading 
material information to the Committee, or omitted material information, 
including relevant information that was supplied in response to 
provisions of Sec. 800.402; that was requested specifically by the 
Committee in the course of review, investigation, or Presidential 
determination; or that was actually provided by a party, in addition to 
such other penalties as may be provided by law,
    (1) The Committee may reopen its review or investigation of the 
transaction, and revise any recommendation or recommendations submitted 
to the President;
    (2) Any Committee member may submit or resubmit an agency notice 
under Sec. 800.401, to begin anew the process of review and 
investigation; and/or
    (3) The President may take such action for such time as the 
President deems appropriate in respect of the acquisition, and may 
revise actions earlier taken.
    (f) The Committee will generally not consider as material minor 
inaccuracies, omissions, or changes relating to financial or commercial 
factors not having a bearing on national security.

    Example 1. Corporation A, a foreign person, states in its joint 
filing with Corporation X, a U.S.-controlled person, that Corporation A 
will acquire all of the shares of Corporation X at $100 per share on 
July 31, 1991. For commercial reasons, the acquisition in fact takes 
place on August 31 of the same year, and the actual price paid per share 
is $150. The Committee would not regard these factors alone as reason to 
set aside a prior decision by the Committee not to investigate the 
proposed transaction.
    Example 2. Same facts as stated in sentence one of Example 1, except 
that the joint filing of Corporations A and X also states, in responding 
to Sec. 800.402(b)(3)(iv), that Corporation X has no contracts 
involving classified information. In fact, Corporation X has classified 
contracts with the Department of Defense. The statement would be 
considered false and could lead to action by the Committee under 
paragraph (e) of this section.

    (g) Divestment or other relief under section 721 shall not be 
available with respect to transactions that were concluded prior to the 
effective date.

[56 FR 58780, Nov. 21, 1991, as amended at 59 FR 27180, May 25, 1994]

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