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RegularX(kKí$¡¡Ô€%X©‚XXXÔÔ€%&1Œ&X%X©‚ÔÑ  ÑÓ  ÓÖ€&ÿÿÖC:\OFFICE\WPWIN\TEMPLATE\STANDARD.WPT+ÁON    ‹0Times New Roman Bold(#Ã$òòÚ  Ú0Ú  Úóó¬}H83|x(Vm$˜˜Ìà0  àà ° à)ÁON    ‹>Times New Roman Bold Italic)ÁON    ‹>Times New Roman Bold Italic)ÁON    ‹>Times New Roman Bold Italic)ÁON    ‹>Times New Roman Bold Italic)ÁON    ‹>Times New Roman Bold Italic)ÁON    ‹>Times New Roman Bold Italic)ÁON    ‹>Times New Roman Bold Italic)ÁON    ‹>Times New Roman Bold Italic)ÁON    ‹>Times New Roman Bold Italic)ÁON    ‹>Times New Roman Bold Italic)ÁON    ‹>Times New Roman Bold Italic)ÁON    ‹>Times New Roman Bold Italic)ÁON    ‹>Times New Roman Bold Italic)ÁON    ‹>Times New Roman Bold Italic)ÁON    ‹>Times New Roman Bold Italic)ÁON    ‹>Times New Roman Bold Italic)ÁON    ‹>Times New Roman Bold Italic)ÁON    ‹>Times New Roman Bold Italic)ÁON    ‹>Times New Roman Bold Italic)ÁON    ‹>Times New Roman Bold Italic)ÁON    ‹>Times New Roman Bold Italic)ÁON    ‹>Times New Roman Bold Italic""""'ÿÿdxd d""E"Thin Top/Bottom dxd"'õÿdxd(ÈhH  Z ‹6Times New Roman Regular 5Ý ƒÊ))ÝÔ€%XvXXXÔÔ€%&rf%X%XvÔÓ  ÓÝ  ÝÔ_ÔÔ€'&¡z%%%&rfÔÔ€'Â^åÂ%'&¡zÔExport€Administration€Regulations€à€šš=(#àApril€26,€Ô_Ô2002Ô_ÔÔ_ÔÔ_Ô+ÁON    ‹0Times New Roman Bold)ÁON    ‹>Times New Roman Bold Italic 8Ý ƒ*QÎ$ÝÔ€%XvXXXÔÔ€%&rf%X%XvÔÓ  ÓÓÓ€€€€€òòÚ  Ú1Ú  ÚóóÝ  ÝÔ_ÔÔ‡%‡pÂ%%&rfÔ€The€Department€originally€issued€this€interpretationÐ ° Ðpursuant€to€the€Export€Administration€Amendments€Act€ofÐ ˆØ Ð1979€(Public€Law€95„52)€and€the€regulations€on€restrictiveÐ 8ˆ Ðtrade€practices€and€boycotts€(15€CFR€369)€published€onÐ è8 ÐJanuary€25,€1978€(43€FR€3508).Ô#†%&rf%Â%‡p¨#Ô(˜!2QÎ$¤¤Ý ƒKí!ÝÔ€%Xn­XXXÔÔ€%&dn%X%Xn­ÔÑ  ÑÓ  ÓÖ€&ÿÿÖÝ  ÝÓÓ€€€€€òòÚ  Ú0Ú  Úóó XÝ ƒ*QÎ$ÝÔ€%XvXXXÔÔ€%&rf%X%XvÔÓ  ÓÓÓ€€€€€òòÚ  Ú2Ú  ÚóóÝ  ÝÔ_ÔÔ‡%‡pÂ%%&rfÔ€The€Department€originally€issued€this€interpretation€onÐ ° ÐApril€21,€1978€(43€FR€16969)€pursuant€to€the€ExportÐ ˆØ ÐAdministration€Amendments€Act€of€1977€(Public€Law€95„52)Ð 8ˆ 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ÐÓdÓà€(#(#K(#àˆÌÓ0°°(#Ø'‹X°,X°„–h•X0ÓÓ  ÓSec.à‘¬!¬!G(#àPageÔ#†%&rf%%&¡zE#ÔÔ‡&¡z%%%&rfԈР` ÐÓ4°,X°„–h•X°°(#Ø'‹X 4ÓÓ<ÓÌ760.1à  àDefinitionsà‚Ì"Ì"J(#.h h à1ˆÐ À  ÐÌ760.2à  àProhibitionsà‚p"p"I(#.Ø Ø à13ˆÐ p À ÐÌ760.3à  àExceptions€to€prohibitionsà‚p"p"I(#.)à34ˆÐ  p  ÐÌ760.4à  àEvasionà‚p"p"I(#.x x à59ˆÐ Ð  ÐÌ760.5à  àReporting€requirementsà‚p"p"I(#.tt%à63ˆÐ €Ð  ÐÌINTERPRETATIONSà‚FF;(#.ž ž àÔ#†%&rf%%&¡z…#ÔÔ‡&¡z%%%&rfÔSUPPLEMENT€NO.€1Ô#†%&rf%%&¡zò#ÔÔ‡&¡z%%%&rfԈР0€  ÐINTERPRETATIONà‚FF;(#.8 8 àÔ#†%&rf%%&¡zD#ÔÔ‡&¡z%%%&rfÔSUPPLEMENT€NO.€2Ô#†%&rf%%&¡zÅ#ÔÔ‡&¡z%%%&rfԈРX ÐINTERPRETATIONà‚FF;(#.8 8 àÔ#†%&rf%%&¡z#ÔÔ‡&¡z%%%&rfÔSUPPLEMENT€NO.€3Ô#†%&rf%%&¡z˜#ÔÔ‡&¡z%%%&rfԈРà0 ÐINTERPRETATIONà‚FF;(#.8 8 àÔ#†%&rf%%&¡zê#ÔÔ‡&¡z%%%&rfÔSUPPLEMENT€NO.€4Ô#†%&rf%%&¡zk#ÔÔ‡&¡z%%%&rfԈР¸ ÐINTERPRETATIONà‚FF;(#.8 8 àÔ#†%&rf%%&¡z½#ÔÔ‡&¡z%%%&rfÔSUPPLEMENT€NO.€5Ô#†%&rf%%&¡z>#ÔÔ‡&¡z%%%&rfԈРà ÐINTERPRETATIONà‚FF;(#.8 8 àÔ#†%&rf%%&¡z#ÔÔ‡&¡z%%%&rfÔSUPPLEMENT€NO.€6Ô#†%&rf%%&¡z #ÔÔ‡&¡z%%%&rfԈРh¸ ÐINTERPRETATIONà‚FF;(#.8 8 àÔ#†%&rf%%&¡zc #ÔÔ‡&¡z%%%&rfÔSUPPLEMENT€NO.€7Ô#†%&rf%%&¡zä #ÔÔ‡&¡z%%%&rfԈР@ ÐINTERPRETATIONà‚FF;(#.8 8 àÔ#†%&rf%%&¡z6 #ÔÔ‡&¡z%%%&rfÔSUPPLEMENT€NO.€8Ô#†%&rf%%&¡z· #ÔÔ‡&¡z%%%&rfԈРh ÐINTERPRETATIONà‚FF;(#.8 8 àÔ#†%&rf%%&¡z #ÔÔ‡&¡z%%%&rfÔSUPPLEMENT€NO.€9Ô#†%&rf%%&¡zŠ #ÔÔ‡&¡z%%%&rfԈРð@ ÐINTERPRETATIONà‚êê:(#.8 8 àÔ#†%&rf%%&¡zÜ #ÔÔ‡&¡z%%%&rfÔSUPPLEMENT€NO.€10Ô#†%&rf%%&¡z] #ÔÔ‡&¡z%%%&rfÔˆÐ È ÐINTERPRETATIONà‚êê:(#.8 8 àÔ#†%&rf%%&¡z° #ÔÔ‡&¡z%%%&rfÔSUPPLEMENT€NO.€11Ô#†%&rf%%&¡z1 #ÔÔ‡&¡z%%%&rfԈР ð ÐINTERPRETATIONà‚êê:(#.8 8 àÔ#†%&rf%%&¡z„ #ÔÔ‡&¡z%%%&rfÔSUPPLEMENT€NO.€12Ô#†%&rf%%&¡z#ÔÔ‡&¡z%%%&rfԈРxÈ ÐINTERPRETATIONà‚êê:(#.8 8 àÔ#†%&rf%%&¡zX#ÔÔ‡&¡z%%%&rfÔSUPPLEMENT€NO.€13Ô#†%&rf%%&¡zÙ#ÔÔ‡&¡z%%%&rfԈРP  ÐINTERPRETATIONà‚êê:(#.8 8 àÔ#†%&rf%%&¡z,#ÔÔ‡&¡z%%%&rfÔSUPPLEMENT€NO.€14Ô#†%&rf%%&¡z­#ÔÔ‡&¡z%%%&rfԈР(x ÐINTERPRETATIONà‚êê:(#.8 8 àÔ#†%&rf%%&¡z#ÔÔ‡&¡z%%%&rfÔSUPPLEMENT€NO.€15Ô#†%&rf%%&¡z#ÔÔ‡&¡z%%%&rfԈРP ÐINTERPRETATIONà‚êê:(#.8 8 àÔ#†%&rf%%&¡zÔ#ÔÔ‡&¡z%%%&rfÔSUPPLEMENT€NO.€16Ô#†%&rf%%&¡zU#ÔÔ% €š Ôò òˆÐ  Ø(ø ÐÑùJ»Ñâ ùâÑxÈÑâ ùâÑ  ÑÔ_ÔØØÓ  ÓÒ(X°(#°(#(ÒÑ€ðOY Ñðð760.1Ô Ý ÃÔÐ Ø ÐÌDEFINITIONSÐ ˆ° Ðó óÓ8ÓÌIn€this€part,€references€to€the€EAR€are€referencesÐ 8 ` Ðto€15€CFR€chapter€VII,€subchapter€C.Ð  8 ÐÌÓ  ÓÔ‡&Ø{%%%&rfÔ(a)€€Definition€of€ð ðPersonððÔ#†%&rf%%&Ø{p#ÔÐ À è ÐÓdÓÌFor€purposes€of€this€part,€the€term€ð ðòòpersonóóððÐ n –  Ðmeans€any€individual,€or€any€association€orÐ Fn  Ðorganization,€public€or€private,€which€isÐ F  Ðorganized,€permanently€established,€resident,€orÐ ö  Ðregistered€to€do€business,€in€the€United€States€orÐ Îö  Ðany€foreign€country.€€This€definition€of€ð ðpersonððÐ ¦Î  Ðincludes€both€the€singular€and€plural€and,€inÐ ~¦  Ðaddition,€includes:Ð V~  ÐÌÔ‡&¡z%%%&rfÔ(1)Ô#†%&rf%%&¡z#Ô€Any€partnership,€corporation,€company,€†††Ð . Ðbranc‚h,€or€other€form€of€association€orÐ â  Ðorganization,€whether€organized€for€profit€orÐ ºâ Ðnon-profit€purposes;Ð ’º ÐÌÔ‡8&¡z%%%&rfÔ(2)Ô#†%&rf%%8&¡z6#Ô€€Any€government,€or€any€department,€agency,Ð Bj Ðor€commission€of€any€government;Ð F ÐÌÔ‡<&¡z%%%&rfÔ(3)Ô#†%&rf%%<&¡zò#Ô€€Any€trade€association,€chamber€of€commerce,Ð Îö Ðor€labor€union;Ð ªÒ ÐÌÔ‡=&¡z%%%&rfÔ(4)Ô#†%&rf%%=&¡zž#Ô€€Any€charitable€or€fraternal€organization;€andÐ Z‚ ÐÌÔ‡>&¡z%%%&rfÔ(5)Ô#†%&rf%%>&¡z(#Ô€€Any€other€association€or€organization€notÐ  6 Ðspecifically€listed€in€paragraphs€(a)(1)€through€(4)Ð ê   Ðof€this€section.Ð Â!ê! ÐÌÓ  ÓÔ‡&Ø{%%%&rfÔ(b)€€Definition€of€ð ðUnited€States€PersonððÔ#†%&rf%%&Ø{(#ÔÐ r#š# ÐÓÓÌÔ‡B&¡z%%%&rfÔ(1)Ô#†%&rf%%B&¡z¿#Ô€€This€part€applies€to€United€States€persons.Ð  %H% ÐFor€purposes€of€this€part,€the€term€ð ðòòUnited€StatesÐ ü%$ & Ðpersonóóðð€means€any€person€who€is€a€United€StatesÐ Ô&ü ' Ðresident€or€national,€including€individuals,Ð ¬'Ô!( Ðdomestic€concerns,€and€ð ðcontrolled€in€factððÐ „(¬") Ðforeign€subsidiaries,€affiliates,€or€other€permanentÐ \)„#* Ðforeign€establishments€of€domestic€concerns.€Ð 4*\$+ ÐThis€definition€of€ð ðòòUnited€States€personóóðð€includesÐ  +4%, ÐÌboth€the€singular€and€plural€and,€in€addition,Ð ¼,ä&. Ðincludes:Ð Ø. ÐÌà ® à(i)€€The€government€of€the€United€States€or€anyÐ ˆ°0 Ðdepartment,€agency,€or€commission€thereof;Ð `ˆ1 ÐÌà ® à(ii)€€The€government€of€any€State€of€the€UnitedÐ  83 ÐStates,€the€District€of€Columbia,€theÐ è 4 ÐCommonwealth€of€Puerto€Rico,€any€territory€orÐ À è5 Ðpossession€of€the€United€States,€or€anyÐ ˜ À6 Ðsubdivision,€department,€agency,€or€commissionÐ p ˜7 Ðof€any€such€government;Ð Hp8 ÐÌà ® à(iii)€€Any€partnership,€corporation,€company,Ð ø : Ðassociation,€or€other€entity€organized€under€theÐ Ðø ; Ðlaws€of€paragraph€(b)(1)(i)€or€(ii)€of€this€section;Ð ¨Ð < ÐÌà ® à(iv)€€Any€foreign€concernððs€subsidiary,Ð X€ > Ðpartnership,€affiliate,€branch,€office,€or€otherÐ 0X? Ðpermanent€establishment€in€any€state€of€theÐ 0@ ÐUnited€States,€the€District€of€Columbia,€theÐ àA ÐCommonwealth€of€Puerto€Rico,€or€any€territory€orÐ ¸àB Ðpossession€of€the€United€States;€andÐ ¸C ÐÌà ® à(v)€€Any€domestic€concernððs€foreign€subsidiary,Ð @hE Ðpartnership,€affiliate,€branch,€office,€or€otherÐ @F Ðpermanent€foreign€establishment€which€isÐ ðG Ðcontrolled€in€fact€by€such€domestic€concern.€€(SeeÐ ÈðH Ðparagraph€(c)€of€this€section€on€ð ðDefinition€ofÐ  ÈI Ðð ðControlled€in€Fact.ðð)Ð x J ÐÌÔ‡C&¡z%%%&rfÔ(2)Ô#†%&rf%%C&¡z°##Ô€€The€term€ð ðòòdomestic€concernóóðð€means€anyÐ (PL Ðpartnership,€corporation,€company,€association,€orÐ  ,M Ðother€entity€of,€or€organized€under€the€laws€of,Ð Ü N Ðany€jurisdiction€named€in€paragraph€(b)(1)(i)€orÐ ´!ÜO Ð(ii)€of€this€section,€or€any€permanent€domesticÐ Œ"´P Ðestablishment€of€a€foreign€concern.Ð d#ŒQ ÐÌÔ‡D&¡z%%%&rfÔ(3)Ô#†%&rf%%D&¡z‹%#Ô€€The€term€ð ðòòforeign€concernóóðð€means€anyÐ %<S Ðpartnership,€corporation,€company,€association,€orÐ ð% T Ðother€entity€of,€or€organized€under€the€laws€of,Ð È&ð U Ðany€jurisdiction€other€than€those€named€inÐ  'È!V Ðparagraph€(b)(1)(i)€or€(ii)€of€this€section.Ð x( "W ÐÌÔ‡E&¡z%%%&rfÔ(4)Ô#†%&rf%%E&¡z$'#Ô€€The€term€ð ðòòUnited€States€personóóðð€does€notÐ (*P$Y Ðinclude€an€individual€United€States€national€whoÐ +,%Z Ðis€resident€outside€the€United€States€and€who€isÐ Ü+&[ Ðeither€employed€permanently€or€temporarily€by€aÐ ´,Ü&\ Ðnon-United€States€person€or€assigned€to€work€asÐ Ø Ðan€employee€for,€and€under€the€direction€andÐ °Ø Ðcontrol€of,€a€non-United€States€person.Ð ˆ° ÐÌà@JJ ¸ àEXAMPLES€OF€ð ðUNITED€STATESˆÐ 8 ` ÐPERSONððÐ  8 ÐÌThe€following€examples€are€intended€to€giveÐ À è Ðguidance€in€determining€whether€a€person€is€aÐ ˜ À Ðð ðUnited€States€person.ðð€€They€are€illustrative,€notÐ p ˜  Ðcomprehensive.Ð Hp  ÐÌà F à(i)€€U.S.€bank€A€has€a€branch€office€in€foreignÐ ø  Ðcountry€P.€€Such€branch€office€is€a€United€StatesÐ Ðø  Ðperson,€because€it€is€a€permanent€foreignÐ ¨Ð  Ðestablishment€of€a€domestic€concern.Ð €¨  ÐÌà F à(ii)€€Ten€foreign€nationals€establish€aÐ 0X Ðmanufacturing€plant,€A,€in€the€United€States,Ð 0 Ðincorporating€the€plant€under€New€York€law.Ð à ÐÌA€is€a€United€States€person,€because€it€is€aÐ ¸ Ðcorporation€organized€under€the€laws€of€one€ofÐ h Ðthe€states€of€the€United€States.Ð @h ÐÌà F à(iii)€€A,€a€foreign€corporation,€opens€an€officeÐ ð Ðin€the€United€States€for€purposes€of€solicitingÐ Èð ÐU.S.€orders.€€The€office€is€not€separatelyÐ  È Ðincorporated.Ð x  ÐÌAððs€U.S.€office€is€a€United€States€person,€becauseÐ (P Ðit€is€a€permanent€establishment,€in€the€UnitedÐ  ( ÐStates,€of€a€foreign€concern.Ð Ø   ÐÌà F à(iv)€€A,€a€U.S.€individual,€owns€stock€in€foreignÐ ˆ"°" Ðcorporation€B.Ð `#ˆ# ÐÌA€is€a€United€States€person.€€However,€A€is€not€aÐ %8% Ðð ðdomestic€concern,ðð€because€the€term€ð ðdomesticÐ è% & Ðconcernðð€does€not€include€individuals.Ð À&è ' ÐÌà F à(v)€€A,€a€foreign€national€resident€in€the€UnitedÐ p(˜") ÐStates,€is€employed€by€B,€a€foreign€corporation.Ð H)p#* Ðà F àà Ü àà r àà  àà h àÌA€is€a€United€States€person,€because€he€is€residentÐ ø* %, Ðin€the€United€States.Ð Ð+ø%- ÐÐ ¨,Ð&. Ðà ® à(vi)€€A,€a€foreign€national,€who€is€resident€in€aÐ Ø. Ðforeign€country€and€is€employed€by€a€foreignÐ °Ø/ Ðcorporation,€makes€occasional€visits€to€the€UnitedÐ ˆ°0 ÐStates,€for€purposes€of€exploring€businessÐ `ˆ1 Ðopportunities.Ð 8 `2 ÐÌA€is€not€a€United€States€person,€because€he€is€notÐ è 4 Ða€United€States€resident€or€national.Ð À è5 ÐÌà ® à(vii)€€A€is€an€association€of€U.S.€firmsÐ p ˜7 Ðorganized€under€the€laws€of€Pennsylvania€for€theÐ Hp8 Ðpurpose€of€expanding€trade.Ð  H 9 ÐÌA€is€a€United€States€person,€because€it€is€anÐ Ðø ; Ðassociation€organized€under€the€laws€of€one€of€theÐ ¨Ð < Ðstates€of€the€United€States.Ð €¨ = ÐÌà ® àðð(viii)€€Ô‡A&rf%%%&rfÔAt€the€request€of€country€Y,€A,€anÐ 0X? Ðindividual€employed€by€U.S.€company€B,€isÐ 0@ Ðassigned€to€company€C€as€an€employee.€€C€is€aÐ àA Ðforeign€company€owned€and€controlled€byÐ ¸àB Ðcountry€Y.€A,€a€U.S.€national€who€will€reside€inÐ ¸C ÐY,€has€agreed€to€the€assignment€provided€he€isÐ hD Ðable€to€retain€his€insurance,€pension,€and€otherÐ @hE Ðbenefits.Ô#†%&rf%%A&rfÛ4#Ô€Accordingly,€company€B€has€agreed€toÐ @F Ðkeep€A€as€an€employee€in€order€to€protect€hisÐ ðG Ðemployee€benefits,€and€company€C€has€agreed€toÐ ÈðH Ðpay€for€Aððs€salary.€€At€all€times€while€he€worksÐ  ÈI Ðfor€C,€A€will€be€under€Cððs€direction€and€control.Ð x J ÐÌA€is€not€a€United€States€person€while€under€CððsÐ (PL Ðdirection€and€control,€because€he€will€be€residentÐ  (M Ðoutside€the€United€States€and€assigned€as€anÐ Ø N Ðemployee€to€a€non-United€States€person.€€TheÐ °!ØO Ðarrangement€designed€to€protect€Aððs€insurance,Ð ˆ"°P Ðpension,€and€other€benefits€does€not€destroy€hisÐ `#ˆQ Ðstatus€as€an€employee€of€C€so€long€as€he€is€underÐ 8$`R Ðthe€direction€and€control€of€C.Ð %8S Ðà@  < àˆÌà ® à(ix)€€A,€a€U.S.€citizen,€has€resided€in€Europe€forÐ À&è U Ðthree€years,€where€he€is€a€self-employedÐ ˜'À!V Ðconsultant€for€United€States€and€foreignÐ p(˜"W Ðcompanies€in€the€communications€industry.Ð H)p#X ÐÌA€is€a€United€States€person,€because€he€is€a€U.S.Ð ø* %Z Ðnational€and€because€he€is€not€a€resident€outside€Ð Ð+ø%[ Ðthe€United€States€who€is€employed€by€other€thanÐ ¨,Ð&\ Ða€United€States€person.Ð Ø ÐÌÓ  ÓÔ‡&Ø{%%%&rfÔ(c)€€Definition€of€ð ðControlled€in€FactððÔ#†%&rf%%&Ø{w<#ÔÐ ˆ° ÐÓk<ÓÌÔ‡F&¡z%%%&rfÔ(1)Ô#†%&rf%%F&¡z =#Ô€€This€part€applies€to€any€domestic€concernððsÐ 6 ^ Ðforeign€subsidiary,€partnership,€affiliate,€branch,Ð  : Ðoffice,€or€other€permanent€foreign€establishmentÐ ê  Ðwhich€is€ð ðcontrolled€in€factðð€by€such€domesticÐ  ê Ðconcern.€€ð ðControl€in€factðð€consists€of€theÐ š  Ðauthority€or€ability€of€a€domestic€concern€toÐ r š  Ðestablish€the€general€policies€or€to€controlÐ Jr  Ðday-to-day€operations€of€its€foreign€subsidiary,Ð "J  Ðpartnership,€affiliate,€branch,€office,€or€otherÐ ú"  Ðpermanent€foreign€establishment.Ð Òú  ÐÌÔ‡G&¡z%%%&rfÔ(2)Ô#†%&rf%%G&¡zõ?#Ô€€A€foreign€subsidiary€or€affiliate€of€a€domesticÐ ‚ª  Ðconcern€will€be€presumed€to€be€controlled€in€factÐ ^†  Ðby€that€domestic€concern,€subject€to€rebuttal€byÐ 6^ Ðcompetent€evidence,€when:Ð 6 ÐÌà F à(i)€€The€domestic€concern€beneficially€owns€orÐ ¾æ Ðcontrols€(whether€directly€or€indirectly)€more€thanÐ –¾ Ð50€percent€of€the€outstanding€voting€securities€ofÐ n– Ðthe€foreign€subsidiary€or€affiliate;Ð Fn ÐÌà F à(ii)€€The€domestic€concern€beneficially€owns€orÐ ö Ðcontrols€(whether€directly€or€indirectly)€25Ð Îö Ðpercent€or€more€of€the€voting€securities€of€theÐ ¦Î Ðforeign€subsidiary€or€affiliate,€if€no€other€personÐ ~¦ Ðowns€or€controls€(whether€directly€or€indirectly)Ð V~ Ðan€equal€or€larger€percentage;Ð .V ÐÌà F à(iii)€€The€foreign€subsidiary€or€affiliate€isÐ Þ   Ðoperated€by€the€domestic€concern€pursuant€to€theÐ ¶!Þ! Ðprovisions€of€an€exclusive€management€contract;Ð Ž"¶" ÐÌ€à F à(iv)€€A€majority€of€the€members€of€the€board€ofÐ >$f$ Ðdirectors€of€the€foreign€subsidiary€or€affiliate€areÐ %>% Ðalso€members€of€the€comparable€governing€bodyÐ î% & Ðof€the€domestic€concern;Ð Æ&î ' ÐÌà F à(v)€€The€domestic€concern€has€authority€toÐ v(ž") Ðappoint€the€majority€of€the€members€of€the€boardÐ N)v#* Ðof€directors€of€the€foreign€subsidiary€or€affiliate;Ð &*N$+ ÐorÐ þ*&%, ÐÌà F à(vi)€€The€domestic€concern€has€authority€toÐ ®,Ö&. Ðappoint€the€chief€operating€officer€of€the€foreignÐ Ø. Ðsubsidiary€or€affiliate.Ð °Ø/ ÐÌÔ‡H&¡z%%%&rfÔ(3)Ô#†%&rf%%H&¡z}G#Ô€€A€brokerage€firm€or€other€person€which€holdsÐ `ˆ1 Ðsimple€record€ownership€of€securities€for€theÐ < d2 Ðconvenience€of€clients€will€not€be€deemed€toÐ  <3 Ðcontrol€the€securities.Ð ì 4 ÐÌÔ‡I&¡z%%%&rfÔ(4)Ô#†%&rf%%I&¡zµH#Ô€€A€domestic€concern€which€owns,€directly€orÐ œ Ä6 Ðindirectly,€securities€that€are€immediatelyÐ x  7 Ðconvertible€at€the€option€of€the€holder€or€ownerÐ Px8 Ðinto€voting€securities€is€presumed€to€own€orÐ (P 9 Ðcontrol€those€voting€securities.Ð ( : ÐÌÔ‡J&¡z%%%&rfÔ(5)Ô#†%&rf%%J&¡z7J#Ô€€A€domestic€concernððs€foreign€branch€officeÐ °Ø < Ðor€other€unincorporated€permanent€foreignÐ Œ´ = Ðestablishment€is€deemed€to€be€controlled€in€factÐ dŒ > Ðby€such€domestic€concern€under€allÐ <d? Ðcircumstances.Ð <@ ÐÌà@kk, àEXAMPLES€OF€ð ðCONTROLLED€IN€FACTððˆÐ ÄìB ÐÌThe€following€examples€are€intended€to€giveÐ tœD Ðguidance€in€determining€the€circumstances€inÐ LtE Ðwhich€a€foreign€subsidiary,€affiliate,€or€otherÐ $LF Ðpermanent€foreign€establishment€of€a€domesticÐ ü$G Ðconcern€is€ð ðcontrolled€in€fact.ðð€€They€areÐ ÔüH Ðillustrative,€not€comprehensive.Ð ¬ÔI ÐÌà ® à(i)€€Company€A€is€incorporated€in€a€foreignÐ \„K Ðcountry.€€€Fifty-one€percent€of€the€voting€stock€ofÐ 4\L ÐA€is€owned€by€U.S.€company€B.Ð  4M ÐÌA€is€presumed€to€be€controlled€in€fact€by€B.€ThisÐ ¼!äO Ðpresumption€may€be€rebutted€by€competentÐ ”"¼P Ðevidence€showing€that€control€does€not,€in€fact,Ð l#”Q Ðlie€with€B.Ð D$lR Ðà ® àà D àà Ú àÌà ® à(ii)€€Company€A€is€incorporated€in€a€foreignÐ ô% T Ðcountry.€€Ten€percent€of€the€voting€stock€of€A€isÐ Ì&ô U Ðowned€by€U.S.€company€B.€€A€has€an€exclusiveÐ ¤'Ì!V Ðmanagement€contract€with€B€pursuant€to€which€AÐ |(¤"W Ðis€operated€by€B.Ð T)|#X ÐÌAs€long€as€such€contract€is€in€effect,€A€isÐ +,%Z Ðpresumed€to€be€controlled€in€fact€by€B.€€ThisÐ Ü+&[ Ðpresumption€may€be€rebutted€by€competentÐ ´,Ü&\ Ðevidence€showing€that€control€does€not,€in€fact,Ð Ø Ðlie€with€B.Ð °Ø ÐÌà F à(iii)€€Company€A€is€incorporated€in€a€foreignÐ `ˆ Ðcountry.€€Ten€percent€of€the€voting€stock€of€A€isÐ 8 ` Ðowned€by€U.S.€company€B.€€A€has€10€persons€onÐ  8 Ðits€board€of€directors.€€Six€of€those€persons€areÐ è  Ðalso€members€of€the€board€of€directors€of€U.S.Ð À è Ðcompany€B.Ð ˜ À ÐÌA€is€presumed€to€be€controlled€in€fact€by€B.€€ThisÐ Hp  Ðpresumption€may€be€rebutted€by€competentÐ  H  Ðevidence€showing€that€control€does€not,€in€fact,Ð ø  Ðlie€with€B.Ð Ðø  ÐÌà F à(iv)€€Company€A€is€incorporated€in€a€foreignÐ €¨  Ðcountry.€€Thirty€percent€of€the€voting€securities€ofÐ X€  ÐA€is€owned€by€U.S.€company€B€and€no€otherÐ 0X Ðperson€owns€or€controls€an€equal€or€larger€share.Ð 0 ÐÌA€is€presumed€to€be€controlled€in€fact€by€B.€€ThisÐ ¸à Ðpresumption€may€be€rebutted€by€competentÐ ¸ Ðevidence€showing€that€control€does€not,€in€fact,Ð h Ðlie€with€B.Ð @h ÐÌà F à(v)€€Company€A€is€incorporated€in€a€foreignÐ ð Ðcountry.€€In€Aððs€articles€of€incorporation,€U.S.Ð Èð Ðcompany€B€has€been€given€authority€to€appointÐ  È ÐAððs€board€of€directors.Ð x  ÐÌA€is€presumed€to€be€controlled€in€fact€by€B.€€ThisÐ (P Ðpresumption€may€be€rebutted€by€competentÐ  ( Ðevidence€showing€that€control€does€not,€in€fact,Ð Ø   Ðlie€with€B.Ð °!Ø! ÐÌà F à(vi)€€Company€A€is€a€joint€venture€establishedÐ `#ˆ# Ðin€a€foreign€country,€with€equal€participation€byÐ 8$`$ ÐU.S.€company€B€and€foreign€company€C.€€U.S.Ð %8% ÐCompany€B€has€authority€to€appoint€Aððs€chiefÐ è% & Ðoperating€officer.Ð À&è ' ÐÌA€is€presumed€to€be€controlled€in€fact€by€B.€€ThisÐ p(˜") Ðpresumption€may€be€rebutted€by€competentÐ H)p#* Ðevidence€showing€that€control€does€not,€in€fact,Ð  *H$+ Ðlie€with€B.Ð ø* %, ÐÌà F à(vii)€€Same€as€(vi),€except€that€B€has€noÐ ¨,Ð&. Ðauthority€to€appoint€Aððs€chief€operating€officer.Ð Ø. ÐÌB€is€not€presumed€to€control€A,€absent€other€factsÐ ˆ°0 Ðgiving€rise€to€a€presumption€of€control.Ð `ˆ1 ÐÌà ® à(viii)€€Company€A€is€incorporated€in€a€foreignÐ  83 Ðcountry.€U.S.€€companies€B,€C,€and€D€each€ownÐ è 4 Ð20€percent€of€Aððs€voting€securities€and€regularlyÐ À è5 Ðcast€their€votes€in€concert.Ð ˜ À6 ÐÌA€is€presumed€to€be€controlled€in€fact€by€B,€C,Ð Hp8 Ðand€D,€because€these€companies€are€acting€inÐ  H 9 Ðconcert€to€control€A.Ð ø : ÐÌà ® à(ix)€€U.S.€bank€B€located€in€the€United€StatesÐ ¨Ð < Ðhas€a€branch€office,€A,€in€a€foreign€country.€€A€isÐ €¨ = Ðnot€separately€incorporated.Ð X€ > ÐÌA€is€deemed€to€be€controlled€in€fact€by€B,€becauseÐ 0@ ÐA€is€a€branchÐ àA Ðoffice€of€a€domestic€concern.Ð ¸àB ÐÌà ® à(x)€€Company€A€is€incorporated€in€a€foreignÐ hD Ðcountry.€€Fifty-one€percent€of€the€voting€stock€ofÐ @hE ÐA€is€owned€by€company€B,€which€is€incorporatedÐ @F Ðin€another€foreign€country.€€Fifty-one€percent€ofÐ ðG Ðthe€voting€stock€of€B€is€owned€by€C,€a€U.S.Ð ÈðH Ðcompany.Ð  ÈI ÐÌBoth€A€and€B€are€presumed€to€be€controlled€inÐ PxK Ðfact€by€C.€€The€presumption€of€Cððs€control€over€BÐ (PL Ðmay€be€rebutted€by€competent€evidence€showingÐ  (M Ðthat€control€over€B€does€not,€in€fact,€lie€with€C.€Ð Ø N ÐThe€presumption€of€Bððs€control€over€A€(and€thusÐ °!ØO ÐCððs€control€over€A)€may€be€rebutted€by€competent€Ð ˆ"°P ÐÌevidence€showing€that€control€over€A€does€not,€inÐ 8$`R Ðfact,€lie€with€B.Ð %8S ÐÌà ® à(xi)€€B,€a€U.S.€individual,€owns€51€percent€ofÐ À&è U Ðthe€voting€securities€of€A,€a€manufacturingÐ ˜'À!V Ðcompany€incorporated€and€located€in€a€foreignÐ p(˜"W Ðcountry.Ð H)p#X ÐÌA€is€not€ð ðcontrolled€in€factðð€under€this€part,Ð ø* %Z Ðbecause€it€is€not€controlled€by€a€ð ðdomesticÐ Ð+ø%[ Ðconcern.ððÐ ¨,Ð&\ ÐÓ  ÓÔ‡&Ø{%%%&rfÔ(d)€Definition€of€ð ðActivities€in€the€Interstate€orÐ Ø ÐForeign€Commerce€of€the€United€StatesððÔ#†%&rf%%&Ø{¡c#ÔÐ ®Ö ÐÓ•cÓÌÓ  Óà@@ÓÓ¸ àACTIVITIES€INVOLVING€UNITED€STATESÐ \„ ÐPERSONS€LOCATED€IN€THE€UNITED€†††Ð 4 \ ÐSTATES€Ð  4 ÐÓ|dÓÌÔ‡K&¡z%%%&rfÔ(1)Ô#†%&rf%%K&¡z4e#Ô€€For€purposes€of€this€part,€the€activities€of€aÐ ¼ ä ÐUnited€States€person€located€in€the€United€StatesÐ ˜ À Ðare€in€the€interstate€or€foreign€commerce€of€theÐ p ˜  ÐUnited€States€if€they€involve€the€sale,€purchase,€orÐ Hp  Ðtransfer€of€goods€or€services€(includingÐ  H  Ðinformation)€between:Ð ø  ÐÌà F à(i)€€Two€or€more€of€the€several€States€(includingÐ ¨Ð  Ðthe€District€of€Columbia);Ð €¨  ÐÌà F à(ii)€€Any€State€(including€the€District€ofÐ 0X ÐColumbia)€and€any€territory€or€possession€of€theÐ 0 ÐUnited€States;Ð à ÐÌà F à(iii)€€Two€or€more€of€the€territories€orÐ ¸ Ðpossessions€of€the€United€States;€orÐ h ÐÌà F à(iv)€€A€State€(including€the€District€ofÐ @ ÐColumbia),€territory€or€possession€of€the€UnitedÐ ð ÐStates€and€any€foreign€country.Ð Èð ÐÌÔ‡L&¡z%%%&rfÔ(2)Ô#†%&rf%%L&¡zvi#Ô€€For€purposes€of€this€part,€the€export€of€goodsÐ x  Ðor€services€from€the€United€States€and€the€importÐ T| Ðof€goods€or€services€into€the€United€States€areÐ ,T Ðactivities€in€United€States€commerce.€€In€addition,Ð  , Ðthe€action€of€a€domestic€concern€in€specificallyÐ Ü   Ðdirecting€the€activities€of€its€controlled€in€factÐ ´!Ü! Ðforeign€subsidiary,€affiliate,€or€other€permanentÐ Œ"´" Ðforeign€establishment€is€an€activity€in€UnitedÐ d#Œ# ÐStates€commerce.Ð <$d$ ÐÌÔ‡M&¡z%%%&rfÔ(3)Ô#†%&rf%%M&¡z l#Ô€€Activities€of€a€United€States€person€located€inÐ ì% & Ðthe€United€States€may€be€in€United€StatesÐ È&ð ' Ðcommerce€even€if€they€are€part€of€or€ancillary€toÐ  'È!( Ðactivities€outside€United€States€commerce.€Ð x( ") ÐHowever,€the€fact€that€an€ancillary€activity€is€inÐ P)x#* ÐUnited€States€commerce€does€not,€in€and€of€itself,Ð (*P$+ Ðmean€that€the€underlying€or€related€activity€is€inÐ +(%, ÐUnited€States€commerce.Ð Ø+&- ÐÐ °,Ø&. ÐÔ‡N&¡z%%%&rfÔ(4)Ô#†%&rf%%N&¡zsn#Ô€€Hence,€the€action€of€a€United€States€bankÐ Ø. Ðlocated€in€the€United€States€in€providingÐ ´Ü/ Ðfinancing€from€the€United€States€for€a€foreignÐ Œ´0 Ðtransaction€that€is€not€in€United€States€commerceÐ dŒ1 Ðis€nonetheless€itself€in€United€States€commerce.€Ð < d2 ÐHowever,€the€fact€that€the€financing€is€in€UnitedÐ  <3 ÐStates€commerce€does€not,€in€and€of€itself,€makeÐ ì 4 Ðthe€underlying€foreign€transaction€an€activity€inÐ Ä ì5 ÐUnited€States€commerce,€even€if€the€underlyingÐ œ Ä6 Ðtransaction€involves€a€foreign€company€that€is€aÐ t œ7 Ðð ðUnited€States€personðð€within€the€meaning€of€thisÐ Lt8 Ðpart.Ð $L 9 ÐÌÔ‡O&¡z%%%&rfÔ(5)Ô#†%&rf%%O&¡zÅq#Ô€€Similarly,€the€action€of€a€United€States€personÐ Ôü ; Ðlocated€in€the€United€States€in€providingÐ °Ø < Ðfinancial,€accounting,€legal,€transportation,€orÐ ˆ° = Ðother€ancillary€services€to€its€controlled€in€factÐ `ˆ > Ðforeign€subsidiary,€affiliate,€or€other€permanentÐ 8`? Ðforeign€establishment€in€connection€with€aÐ 8@ Ðforeign€transaction€is€in€United€States€commerce.€Ð èA ÐBut€the€provision€of€such€ancillary€services€willÐ ÀèB Ðnot,€in€and€of€itself,€bring€the€foreign€transactionÐ ˜ÀC Ðof€such€subsidiary,€affiliate,€or€permanent€foreignÐ p˜D Ðestablishment€into€United€States€commerce.Ð HpE ÐÌÓ  Óà@@©©, àÔ  ÔACTIVITIES€OF€CONTROLLED€IN€FACTÐ ø G ÐFOREIGN€SUBSIDIARIES,€AFFILIATES,Ð ÐøH Ðà@@. àAND€OTHER€PERMANENT€FOREIGN€Ð ¨ÐI ÐÓýtÓà@ûû5 àESTABLISHMENTSˆÐ €¨J ÐÌÔ‡P&¡z%%%&rfÔ(6)Ô#†%&rf%%P&¡zv#Ô€€Any€transaction€between€a€controlled€in€factÐ 0XL Ðforeign€subsidiary,€affiliate,€or€other€permanentÐ  4M Ðforeign€establishment€of€a€domestic€concern€and€Ð ä N ÐÌa€person€located€in€the€United€States€is€an€activityÐ ”"¼P Ðin€United€States€commerce.Ð l#”Q ÐÌÔ‡Q&¡z%%%&rfÔ(7)Ô#†%&rf%%Q&¡z¨w#Ô€€Whether€a€transaction€between€such€a€foreignÐ %DS Ðsubsidiary,€affiliate,€or€other€permanent€foreignÐ ø% T Ðestablishment€and€a€person€located€outside€theÐ Ð&ø U ÐUnited€States€is€an€activity€in€United€StatesÐ ¨'Ð!V Ðcommerce€is€governed€by€the€following€rules.€Ð €(¨"W ÐÌÓ  ÓÌÌÌÐ ¸,à&\ ÐACTIVITIES€IN€UNITED€STATES€Ð Ø ÐCOM††††‚MERCEÐ °Ø ÐÓ>yÓÌÔ‡R&¡z%%%&rfÔ(8)Ô#†%&rf%%R&¡zÇy#Ô€€A€transaction€between€a€domestic€concernððsÐ `ˆ Ðcontrolled€in€fact€foreign€subsidiary,€affiliate,€orÐ < d Ðother€permanent€foreign€establishment€and€aÐ  < Ðperson€outside€the€United€States,€involving€goodsÐ ì  Ðor€services€(including€information€but€notÐ Ä ì Ðincluding€ancillary€services)€acquired€from€aÐ œ Ä Ðperson€in€the€United€States€is€in€United€StatesÐ t œ  Ðcommerce€under€any€of€the€followingÐ Lt  Ðcircumstances:Ð $L  ÐÌà F à(i)€€If€the€goods€or€services€were€acquired€forÐ Ôü  Ðthe€purpose€of€filling€an€order€from€a€personÐ ¬Ô  Ðoutside€the€United€States;Ð „¬  ÐÌà F à(ii)€€If€the€goods€or€services€were€acquired€forÐ 4\ Ðincorporation€into,€refining€into,€reprocessingÐ  4 Ðinto,€or€manufacture€of€another€product€for€theÐ ä  Ðpurpose€of€filling€an€order€from€a€person€outsideÐ ¼ä Ðthe€United€States;Ð ”¼ ÐÌà F à(iii)€€If€the€goods€or€services€were€acquired€forÐ Dl Ðthe€purpose€of€fulfilling€or€engaging€in€any€otherÐ D Ðtransaction€with€a€person€outside€the€United€††††Ð ô ÐStates;€orÐ Ìô ÐÌà F à(iv)€€If€the€goods€were€acquired€and€areÐ |¤ Ðultimately€used,€without€substantial€alteration€orÐ T| Ðmodification,€in€filling€an€order€from,€or€fulfillingÐ ,T Ðor€engaging€in€any€other€transaction€with,€aÐ  , Ðperson€outside€the€United€States€(whether€or€notÐ Ü   Ðthe€goods€were€originally€acquired€for€thatÐ ´!Ü! Ðpurpose).€€If€the€goods€are€indistinguishable€as€toÐ Œ"´" Ðorigin€from€similar€foreign-trade€goods€withÐ d#Œ# Ðwhich€they€have€been€mingled€in€a€stockpile€orÐ <$d$ Ðinventory,€the€subsequent€transaction€involvingÐ %<% Ðthe€goods€is€presumed€to€be€in€United€StatesÐ ì% & Ðcommerce€unless,€at€the€time€of€filling€the€order,Ð Ä&ì ' Ðthe€for††††eign-origin€inventory€on€hand€wasÐ œ'Ä!( Ðsufficient€to€fill€the€order.Ð t(œ") ÐÌÔ‡S&¡z%%%&rfÔ(9)Ô#†%&rf%%S&¡zô‚#Ô€€For€purposes€of€this€section,€goods€orÐ $*L$+ Ðservices€are€considered€to€be€acquired€for€theÐ +(%, Ðpurpose€of€filling€an€order€from€or€engaging€inÐ Ø+&- Ðany€other€transaction€with€a€person€outside€theÐ °,Ø&. ÐUnited€States€where:Ð Ø. ÐÌà ® à(i)€€They€are€purchased€by€the€foreignÐ ˆ°0 Ðsubsidiary,€affiliate,€or€other€permanent€foreignÐ `ˆ1 Ðestablishment€upon€the€receipt€of€an€order€from€orÐ 8 `2 Ðon€behalf€of€a€customer€with€the€intention€that€theÐ  83 Ðgoods€or€services€are€to€go€to€the€customer;Ð è 4 ÐÌà ® à(ii)€€They€are€purchased€by€the€foreignÐ ˜ À6 Ðsubsidiary,€affiliate,€or€other€permanent€foreignÐ p ˜7 Ðestablishment€to€meet€the€needs€of€specifiedÐ Hp8 Ðcustomers€pursuant€to€understandings€with€thoseÐ  H 9 Ðcustomers,€although€not€for€immediate€delivery;Ð ø : ÐorÐ Ðø ; ÐÌà ® à(iii)€€They€are€purchased€by€the€foreignÐ €¨ = Ðsubsidiary,€affiliate,€or€other€permanent€foreignÐ X€ > Ðestablishment€based€on€the€anticipated€needs€ofÐ 0X? Ðspecified€customers.Ð 0@ ÐÌÔ‡T&¡z%%%&rfÔ(10Ô#†%&rf%%T&¡z5ˆ#Ô)€€If€any€non-ancillary€part€of€a€transactionÐ ¸àB Ðbetween€a€domestic€concernððs€controlled€foreignÐ ”¼C Ðsubsidiary,€affiliate,€or€other€permanent€foreignÐ l”D Ðestablishment€and€a€person€outside€the€UnitedÐ DlE ÐStates€is€in€United€States€commerce,€the€entireÐ DF Ðtransaction€is€in€United€States€commerce.€€ForÐ ôG Ðexample,€if€such€a€foreign€subsidiary€is€engagedÐ ÌôH Ðin€filling€an€order€from€a€non-United€StatesÐ ¤ÌI Ðcustomer€both€with€goods€acquired€from€theÐ |¤J ÐUnited€States€and€with€goods€acquired€elsewhere,Ð T|K Ðthe€entire€transaction€with€that€customer€is€inÐ ,TL ÐUnited€States€commerce.Ð  ,M Ðà ® àÌÓ  Óà@@66 ¸ àACTIVITIES€OUTSIDE€Ð ´!ÜO ÐUNITED€STATES€à@@« « ¸ àCOMMERCEÐ Œ"´P ÐÓ™‹ÓÌÔ‡U&¡z%%%&rfÔ(11Ô#†%&rf%%U&¡z-Œ#Ô)€€A€transaction€between€a€domestic€concernððsÐ <$dR Ðcontrolled€foreign€subsidiary,€affiliate,€or€otherÐ %@S Ðpermanent€foreign€establishment€and€a€personÐ ð% T Ðoutside€the€United€States,€not€involving€theÐ È&ð U Ðpurchase,€sale,€or€transfer€of€goods€or€servicesÐ  'È!V Ð(including€information)€to€or€from€a€person€in€theÐ x( "W ÐUnited€States,€is€not€an€activity€in€United€StatesÐ P)x#X Ðcommerce.Ð (*P$Y ÐÌÔ‡V&¡z%%%&rfÔ(12Ô#†%&rf%%V&¡zrŽ#Ô)€€The€activities€of€a€domestic€concernððsÐ Ø+&[ Ðcontrolled€foreign€subsidiary,€affiliate,€or€otherÐ ´,Ü&\ Ðpermanent€foreign€establishment€with€respect€toÐ Ø Ðgoods€acquired€from€a€person€in€the€United€StatesÐ °Ø Ðare€not€in€United€States€commerce€where:Ð ˆ° ÐÌà F à(i)€€They€were€acquired€without€reference€to€aÐ 8 ` Ðspecific€order€from€or€transaction€with€a€personÐ  8 Ðoutside€the€United€States;€and€Ð è  ÐÌà F à(ii)€They€were€further€manufactured,Ð ˜ À Ðincorporated€into,€refined€into,€or€reprocessedÐ p ˜  Ðinto€another€product.Ð Hp  ÐÌÔ‡W&¡z%%%&rfÔ(13)Ô#†%&rf%%W&¡z…‘#Ô€€The€activities€of€a€domestic€concernððsÐ ø  Ðcontrolled€foreign€subsidiary,€affiliate,€or€otherÐ Ôü  Ðpermanent€foreign€establishment€with€respect€toÐ ¬Ô  Ðservices€acquired€from€a€person€in€the€UnitedÐ „¬  ÐStates€are€not€in€United€States€commerceÐ \„  Ðwhere:Ð 4\ ÐÌà F à(i)€€They€were€acquired€without€reference€to€aÐ ä  Ðspecific€order€from€or€transaction€with€a€personÐ ¼ä Ðoutside€the€United€States;€orÐ ”¼ ÐÌà F à(ii)€They€are€ancillary€to€the€transaction€withÐ Dl Ðthe€person€outside€the€United€States.Ð D ÐÌÔ‡X&¡z%%%&rfÔ(14Ô#†%&rf%%X&¡zƒ”#Ô)€€For€purposes€of€this€section,€services€areÐ Ìô Ðð ðancillary€servicesðð€if€they€are€provided€to€aÐ ¨Ð Ðcontrolled€foreign€subsidiary,€affiliate,€or€otherÐ €¨ Ðpermanent€foreign€establishment€primarily€for€itsÐ X€ Ðown€use€rather€than€for€the€use€of€a€third€person.€Ð 0X ÐThese€typically€include€financial,€accounting,Ð  0 Ðlegal,€transportation,€and€other€services,€whetherÐ à   Ðprovided€by€a€domestic€concern€or€an€unrelatedÐ ¸!à! Ðentity.Ð "¸" ÐÌÔ‡Y&¡z%%%&rfÔ(15Ô#†%&rf%%Y&¡z—#Ô)€€Thus,€the€provision€of€the€project€financingÐ @$h$ Ðby€a€United€States€bank€located€in€the€UnitedÐ %D% ÐStates€to€a€controlled€foreign€subsidiary€unrelatedÐ ô% & Ðto€the€bank€is€an€ancillary€service€which€will€notÐ Ì&ô ' Ðcause€the€underlying€transaction€to€be€in€UnitedÐ ¤'Ì!( ÐStates€commerce.€€By€contrast,€where€a€domesticÐ |(¤") Ðconcern,€on€behalf€of€its€controlled€foreignÐ T)|#* Ðsubsidiary,€gives€a€guaranty€of€performance€to€aÐ ,*T$+ Ðforeign€country€customer,€that€is€a€serviceÐ +,%, Ðprovided€to€the€customer€and,€as€such,€brings€thatÐ Ü+&- Ðsubsidiaryððs€transaction€with€the€customer€intoÐ ´,Ü&. ÐUnited€States€commerce.€Similarly,€architecturalÐ Ø. Ðor€engineering€services€provided€by€a€domesticÐ °Ø/ Ðconcern€in€connection€with€its€controlled€foreignÐ ˆ°0 Ðsubsidiaryððs€construction€project€in€a€thirdÐ `ˆ1 Ðcountry€are€services€passed€through€to€theÐ 8 `2 Ðsubsidiaryððs€customer€and,€as€such,€bring€thatÐ  83 Ðsubsidiaryððs€foreign€transaction€into€United€StatesÐ è 4 Ðcommerce.Ð À è5 ÐÌà@uu9 àGENERALˆÐ p ˜7 ÐÌÔ‡Z&¡z%%%&rfÔ(16Ô#†%&rf%%Z&¡zzœ#Ô)€€Regardless€of€whether€the€subsequentÐ  H 9 Ðdisposition€of€goods€or€services€from€the€UnitedÐ ü$ : ÐStates€is€in€United€States€commerce,€the€originalÐ Ôü ; Ðacquisition€of€goods€or€services€from€a€person€inÐ ¬Ô < Ðthe€United€States€is€an€activity€in€United€StatesÐ „¬ = Ðcommerce€subject€to€this€part.€€Thus,€if€aÐ \„ > Ðdomestic€concernððs€controlled€foreign€subsidiaryÐ 4\? Ðengages€in€a€prohibited€refusal€to€do€business€inÐ  4@ Ðstocking€its€inventory€with€goods€from€the€UnitedÐ ä A ÐStates,€that€action€is€subject€to€this€part€whetherÐ ¼äB Ðor€not€subsequent€sales€from€that€inventory€are.Ð ”¼C ÐÌÔ‡[&¡z%%%&rfÔ(17Ô#†%&rf%%[&¡z³Ÿ#Ô)€€In€all€the€above,€goods€and€services€will€beÐ DlE Ðconsidered€to€have€been€acquired€from€a€personÐ  HF Ðin€the€United€States€whether€they€were€acquiredÐ ø G Ðdirectly€or€indirectly€through€a€third€party,€whereÐ ÐøH Ðthe€person€acquiring€the€goods€or€services€knowsÐ ¨ÐI Ðor€expects,€at€the€time€he€places€the€order,€thatÐ €¨J Ðthey€will€be€delivered€from€the€United€States.Ð X€K Ðà ® àà D àà Ú àà p àÌà@©©4 àà@@BB¸ àLETTERS€OF€CREDITˆÐ  0M ÐÌÔ‡\&¡z%%%&rfÔ(18Ô#†%&rf%%\&¡zV¢#Ô)€€Implementation€of€a€letter€of€credit€in€theÐ ¸!àO ÐUnited€States€by€a€United€States€person€located€inÐ ”"¼P Ðthe€United€States,€including€a€permanent€UnitedÐ l#”Q ÐStates€establishment€of€a€foreign€concern,€is€anÐ D$lR Ðactivity€in€United€States€commerce.Ð %DS ÐÌÔ‡]&¡z%%%&rfÔ(19Ô#†%&rf%%]&¡zç£#Ô)€€Implementation€of€a€letter€of€credit€outsideÐ Ì&ô U Ðthe€United€States€by€a€United€States€personÐ ¨'Ð!V Ðlocated€outside€the€United€States€is€in€UnitedÐ €(¨"W ÐStates€commerce€where€the€letter€of€credit€(a)Ð X)€#X Ðspecifies€a€United€States€address€for€theÐ 0*X$Y Ðbeneficiary,€(b)€calls€for€documents€indicatingÐ +0%Z Ðshipment€from€the€United€States,€or€(c)€calls€forÐ à+&[ Ðdocuments€indicating€that€the€goods€are€of€UnitedÐ ¸,à&\ ÐStates€origin.Ð Ø ÐÌÔ‡^&¡z%%%&rfÔ(20Ô#†%&rf%%^&¡zi¦#Ô)€€See€ðð760.2(f)€of€this€part€on€ð ðLetters€ofÐ ˆ° ÐCreditðð€to€determine€the€circumstances€in€whichÐ dŒ Ðpaying,€honoring,€confirming,€or€otherwiseÐ < d Ðimplementing€a€letter€of€credit€is€covered€by€thisÐ  < Ðpart.Ð ì  ÐÌà@ãã ¸ àEXAMPLES€OF€ACTIVITIES€IN€THE€ˆÐ œ Ä ÐINTERSTATE€OR€FOREIGN€COMMERCE€OFÐ t œ  Ðà@11¸ àTHE€UNITED€STATESˆÐ Lt  ÐÌThe€following€examples€are€intended€to€giveÐ ü$  Ðguidance€in€determining€the€circumstances€inÐ Ôü  Ðwhich€an€activity€is€in€the€interstate€or€foreignÐ ¬Ô  Ðcommerce€of€the€United€States.€€They€areÐ „¬  Ðillustrative,€not€comprehensive.Ð \„  ÐÌÓ  Óà@@LL ¸ àUNITED€STATES€PERSON€LOCATED€INÐ  4 ÐTHE€UNITED€STATES€€Ð ä  ÐÓÍ©ÓÌà F à(i)€€U.S.€company€A€exports€goods€from€theÐ ”¼ ÐUnited€States€to€a€foreign€country.€€Aððs€activity€isÐ l” Ðin€U.S.€commerce,€because€A€is€exporting€goodsÐ Dl Ðfrom€the€United€States.Ð D ÐÌà F à(ii)€€U.S.€company€A€imports€goods€into€theÐ Ìô ÐUnited€States€from€a€foreign€country.€€Aððs€activityÐ ¤Ì Ðis€in€U.S.€commerce,€because€A€is€importingÐ |¤ Ðgoods€into€the€United€States.Ð T| ÐÌà F à(iii)€€U.S.€engineering€company€A€suppliesÐ  , Ðconsulting€services€to€its€controlled€foreignÐ Ü   Ðsubsidiary,€B.€€Aððs€activity€is€in€U.S.€commerce,Ð ´!Ü! Ðbecause€A€is€exporting€services€from€the€UnitedÐ Œ"´" ÐStates.€€€Ð d#Œ# ÐÌà F à(iv)€€U.S.€company€A€supplies€consultingÐ %<% Ðservices€to€foreign€company€B.€€B€is€unrelated€toÐ ì% & ÐA€or€any€other€U.S.€person.Ð Ä&ì ' ÐÌAððs€activity€is€in€U.S.€commerce€even€though€B,Ð t(œ") Ða€foreign-owned€company€located€outside€the€††††Ð L)t#* ÐUnit‚ed€States,€is€not€subject€to€this€part,€becauseÐ $*L$+ ÐA€is€exporting€services€from€the€United€States.€€€€Ð ü*$%, ÐÌà F à(v)€€Same€as€(iv),€except€A€is€a€bank€located€inÐ ¬,Ô&. Ðthe€United€States€and€provides€a€construction€loanÐ Ø. Ðto€B.Ð °Ø/ ÐÌAððs€activity€is€in€U.S.€commerce€even€though€B€isÐ `ˆ1 Ðnot€subject€to€this€part,€because€A€is€exportingÐ 8 `2 Ðfinancial€services€from€the€United€States.€€€€Ð  83 ÐÌà ® à(vi)€€U.S.€company€A€issues€policy€directivesÐ À è5 Ðfrom€time€to€time€to€its€controlled€foreignÐ ˜ À6 Ðsubsidiary,€B,€governing€the€conduct€of€BððsÐ p ˜7 Ðactivities€with€boycotting€countries.€Ð Hp8 ÐÌAððs€activity€in€directing€the€activities€of€itsÐ ø : Ðforeign€subsidiary,€B,€is€an€activity€in€U.S.Ð Ðø ; Ðcommerce.Ð ¨Ð < ÐÌÓ  ÓFOREIGN€SUBSIDIARIES,€AFFILIATES,Ð X€ > ÐAND€OTHER€PERMANENT€FOREIGN€Ð 0X? ÐESTABLISHMENTS€OF€DOMESTICÐ 0@ ЀCONCERNSÐ àA ÐÓ»²ÓÌÓ5€¸5Óà ® à(i)€€A,€a€controlled€foreign€subsidiary€of€U.S.Ð ¸C Ðcompany€B,€purchases€goods€from€the€UnitedÐ hD ÐStates.Ð @hE ÐÌAððs€purchase€of€goods€from€the€United€States€isÐ ðG Ðin€U.S.€commerce,€because€A€is€importing€goodsÐ ÈðH Ðfrom€the€United€States.€€Whether€Aððs€subsequentÐ  ÈI Ðdisposition€of€these€goods€is€in€U.S.€commerce€isÐ x J Ðirrelevant.€€Similarly,€the€fact€that€A€purchasedÐ PxK Ðgoods€from€the€United€States€does€not,€in€and€of€Ð (PL ÐÌitself,€make€any€subsequent€disposition€of€thoseÐ Ø N Ðgoods€an€activity€in€U.S.€commerce.Ð °!ØO ÐÌà ® à(ii)€€A,€a€controlled€foreign€subsidiary€of€U.S.Ð `#ˆQ Ðcompany€B,€receives€an€order€from€boycottingÐ 8$`R Ðcountry€Y€for€construction€materials.€€A€places€anÐ %8S Ðorder€with€U.S.€company€B€for€the€materials.Ð è% T ÐÌAððs€transaction€with€Y€is€an€activity€in€U.S.Ð ˜'À!V Ðcommerce,€because€the€materials€are€purchasedÐ p(˜"W Ðfrom€the€United€States€for€the€purpose€of€fillingÐ H)p#X Ðthe€order€from€Y.Ð  *H$Y ÐÌà ® à(iii)€€A,€a€controlled€foreign€subsidiary€of€U.S.Ð Ð+ø%[ Ðcompany€B,€receives€an€order€from€boycottingÐ ¨,Ð&\ Ðcountry€Y€for€construction€materials.€€A€places€anÐ Ø Ðorder€with€U.S.€company€B€for€some€of€theÐ °Ø Ðmaterials,€and€with€U.S.€company€C,€an€unrelatedÐ ˆ° Ðcompany,€for€the€rest€of€the€materials.Ð `ˆ ÐÌAððs€transaction€with€Y€is€an€activity€in€U.S.Ð  8 Ðcommerce,€because€the€materials€are€purchasedÐ è  Ðfrom€the€United€States€for€the€purpose€of€fillingÐ À è Ðthe€order€from€Y.€€It€makes€no€difference€whetherÐ ˜ À Ðthe€materials€are€ordered€from€B€or€C.Ð p ˜  ÐÌà F à(iv)€€A,€a€controlled€foreign€subsidiary€of€U.S.Ð  H  Ðcompany€B,€is€in€the€wholesale€and€retailÐ ø  Ðappliance€sales€business.€€A€purchases€finishedÐ Ðø  Ðair€conditioning€units€from€the€United€States€fromÐ ¨Ð  Ðtime€to€time€in€order€to€stock€its€inventory.€AððsÐ €¨  Ðinventory€is€also€stocked€with€air€conditioningÐ X€  Ðunits€purchased€outside€the€United€States.€€AÐ 0X Ðreceives€an€order€for€air€conditioning€units€fromÐ 0 ÐY,€a€boycotting€country.€€The€order€is€filled€withÐ à ÐU.S.-origin€units€in€Aððs€inventory.Ð ¸à ÐÌAððs€transaction€with€Y€is€in€U.S.€commerce,Ð h Ðbecause€its€U.S.-origin€goods€are€resold€withoutÐ @h Ðsubstantial€alteration.Ð @ ÐÌà F à(v)€€Same€as€(iv),€except€that€A€is€in€theÐ Èð Ðchemicals€distribution€business.€€Its€U.S.-originÐ  È Ðgoods€are€mingled€in€inventory€withÐ x  Ðforeign-origin€goods.Ð Px ÐÌAððs€sale€to€Y€of€unaltered€goods€from€its€generalÐ  ( Ðinventory€is€presumed€to€be€in€U.S.€commerceÐ Ø   Ðunless€A€can€show€that€at€the€time€of€the€sale€theÐ °!Ø! Ðforeign-origin€inventory€on€hand€was€€sufficientÐ ˆ"°" Ðto€cover€the€shipment€to€Y.Ð `#ˆ# ÐÌà F à(vi)€€A,€a€foreign€subsidiary€of€U.S.€company€B,Ð %8% Ðreceives€an€order€from€boycotting€country€Y€forÐ è% & Ðcomputers.€€A€places€an€order€with€U.S.€companyÐ À&è ' ÐB€for€some€of€the€components;€with€U.S.Ð ˜'À!( Ðcompany€C,€an€unrelated€company,€for€otherÐ p(˜") Ðcomponents;€and€with€foreign€company€D€for€theÐ H)p#* Ðrest€of€the€components.€€A€then€assembles€theÐ  *H$+ Ðcomputers€and€ships€them€to€Y.Ð ø* %, Ðà F àà Ü àà r àà  àà h àÌAððs€transaction€with€Y€is€an€activity€in€U.S.Ð ¨,Ð&. Ðcommerce,€because€some€of€the€components€areÐ Ø. Ðacquired€from€the€United€States€for€purposes€ofÐ °Ø/ Ðfilling€an€order€from€Y.Ð ˆ°0 ÐÌà ® à(vii)€€Same€as€(vi),€except€A€purchases€all€theÐ 8 `2 Ðcomponents€from€non-U.S.€sources.Ð  83 ÐÌAððs€transaction€with€Y€is€not€an€activity€in€U.S.Ð À è5 Ðcommerce,€because€it€involves€no€export€of€goodsÐ ˜ À6 Ðfrom€the€United€States.€€It€makes€no€differenceÐ p ˜7 Ðwhether€the€technology€A€uses€to€manufactureÐ Hp8 Ðcomputers€was€originally€acquired€from€its€U.S.Ð  H 9 Ðparent.Ð ø : ÐÌà ® à(viii)€€A,€a€controlled€foreign€subsidiary€of€U.S.Ð ¨Ð < Ðcompany€B,€manufactures€computers.€€A€stocksÐ €¨ = Ðits€general€components€and€parts€inventory€withÐ X€ > Ðpurchases€made€at€times€from€the€United€StatesÐ 0X? Ðand€at€times€from€foreign€sources.€€A€receives€anÐ 0@ Ðorder€from€Y,€a€boycotting€country,€forÐ àA Ðcomputers.€€A€fills€that€order€by€manufacturingÐ ¸àB Ðthe€computers€using€materials€from€its€generalÐ ¸C Ðinventory.Ð hD ÐÌAððs€transaction€with€Y€is€not€in€U.S.€commerce,Ð @F Ðbecause€the€U.S.-origin€components€are€notÐ ðG Ðacquired€for€the€purpose€of€meeting€theÐ ÈðH Ðanticipated€needs€of€specified€customers€in€Y.€€ItÐ  ÈI Ðis€irrelevant€that€Aððs€operations€may€be€based€onÐ x J ÐU.S.-origin€technology.Ð PxK ÐÌà ® à(ix)€€Same€as€(viii),€except€that€in€anticipationÐ  (M Ðof€the€order€from€Y,€A€orders€and€receives€theÐ Ø N Ðnecessary€materials€from€the€United€States.Ð °!ØO ÐÌAððs€transaction€with€Y€is€in€U.S.€commerce,Ð `#ˆQ Ðbecause€the€U.S.-origin€goods€were€acquired€forÐ 8$`R Ðthe€purpose€of€filling€an€anticipated€order€from€Y.Ð %8S Ðà ® àÌà ® à(x)€à p àA,€a€controlled€foreign€subsidiary€of€U.S.Ð À&è U Ðcompany€B,€manufactures€typewriters.€It€buysÐ ˜'À!V Ðtypewriter€components€both€from€the€UnitedÐ p(˜"W ÐStates€and€from€foreign€sources.€€A€sells€itsÐ H)p#X Ðoutput€in€various€places€throughout€the€world,Ð  *H$Y Ðincluding€boycotting€country€Y.€€Its€sales€to€YÐ ø* %Z Ðvary€from€year€to€year,€but€have€averagedÐ Ð+ø%[ Ðapproximately€20€percent€of€sales€for€the€past€fiveÐ ¨,Ð&\ ÐÑðOY Ñâ ðâѰ°Ñâ ðâÑ  Ñyears.€€A€expects€that€its€sales€to€Y€will€remain€atÐ Ø Ðapproximately€that€level€in€the€years€aheadÐ °Ø Ðalthough€it€has€no€contracts€or€orders€from€Y€onÐ ˆ° Ðhand.Ð `ˆ ÐÌAððs€sales€of€typewriters€to€Y€are€not€in€U.S.Ð  8 Ðcommerce,€because€the€U.S.€components€are€notÐ è  Ðacquired€for€the€purpose€of€filling€an€order€fromÐ À è ÐY.€€A€general€expectancy€of€future€sales€is€not€anÐ ˜ À Ðð ðorderðð€within€the€meaning€of€this€section.€€€€Ð p ˜  ÐÌà F à(xi)à  à€U.S.€company€Aððs€corporate€counselÐ  H  Ðprovides€legal€advice€to€B,€its€controlled€foreignÐ ø  Ðsubsidiary,€on€the€applicability€of€this€Part€to€BððsÐ Ðø  Ðtransactions.Ð ¨Ð  ÐÌWhile€provision€of€this€legal€advice€is€itself€anÐ X€  Ðactivity€in€U.S.€commerce,€it€does€not,€in€and€ofÐ 0X Ðitself,€bring€Bððs€activities€into€U.S.€commerce.€€€Ð 0 ÐÌà F à(xii)€€A,€a€controlled€foreign€subsidiary€of€U.S.Ð ¸à Ðcompany€B,€is€in€the€general€constructionÐ ¸ Ðbusiness.€€A€enters€into€a€contract€with€boycottingÐ h Ðcountry€Y€to€construct€a€power€plant€in€Y.€€InÐ @h Ðpreparing€engineering€drawings€andÐ @ Ðspecifications,€A€uses€the€advice€and€assistance€ofÐ ð ÐB.Ð Èð ÐÌAððs€transaction€with€Y€is€in€U.S.€commerce,Ð x  Ðbecause€Bððs€services€are€used€for€purposes€ofÐ Px Ðfulfilling€the€contract€with€Y.€€Bððs€services€are€notÐ (P Ðancillary€services,€because€the€engineeringÐ  ( Ðservices€in€connection€with€construction€of€theÐ Ø   Ðpower€plant€are€part€of€the€services€ultimatelyÐ °!Ø! Ðprovided€to€Y€by€A.€€€€Ð ˆ"°" ÐÌà F à(xiii)€€Same€as€(xii),€except€that€A€gets€noÐ 8$`$ Ðengineering€advice€or€assistance€from€B.€Ð %8% ÐHowever,€Bððs€corporate€counsel€provides€legalÐ è% & Ðadvice€to€A€regarding€the€structure€of€theÐ À&è ' Ðtransaction.€€In€addition,€Bððs€corporate€counselÐ ˜'À!( Ðdraws€up€the€contract€documents.Ð p(˜") ÐÌAððs€transaction€with€Y€is€not€in€U.S.€commerce.€Ð  *H$+ ÐThe€legal€services€provided€to€A€are€ancillaryÐ ø* %, Ðservices,€because€they€are€not€part€of€the€servicesÐ Ð+ø%- Ðprovided€to€Y€by€A€in€fulfillment€of€its€contractÐ ¨,Ð&. Ðwith€Y.€€€€Ð Ø. ÐÌà ® à(xiv)€€A,€a€controlled€foreign€subsidiary€of€U.S.Ð ˆ°0 Ðcompany€B,€enters€into€a€contract€to€construct€anÐ `ˆ1 Ðapartment€complex€in€boycotting€country€Y.€€AÐ 8 `2 Ðwill€fulfill€its€contract€completely€with€goods€andÐ  83 Ðservices€from€outside€the€United€States.€€PursuantÐ è 4 Ðto€a€provision€in€the€contract,€B€guarantees€AððsÐ À è5 Ðperformance€of€the€contract.Ð ˜ À6 ÐÌAððs€transaction€with€Y€is€in€U.S.€commerce,Ð Hp8 Ðbecause€Bððs€guaranty€of€Aððs€performanceÐ  H 9 Ðinvolves€the€acquisition€of€services€from€theÐ ø : ÐUnited€States€for€purposes€of€fulfilling€theÐ Ðø ; Ðtransaction€with€Y,€and€those€services€are€part€ofÐ ¨Ð < Ðthe€services€ultimately€provided€to€Y.€€€€Ð €¨ = ÐÌà ® à(xv)€€Same€as€(xiv),€except€that€the€guaranty€ofÐ 0X? ÐAððs€performance€is€supplied€by€C,€a€non-U.S.Ð 0@ Ðperson€located€outside€the€United€States.€Ð àA ÐHowever,€unrelated€to€any€particular€transaction,Ð ¸àB ÐB€from€time€to€time€provides€general€financial,Ð ¸C Ðlegal,€and€technical€services€to€A.Ð hD ÐÌAððs€transaction€with€Y€is€not€in€U.S.€commerce,Ð @F Ðbecause€the€services€acquired€from€the€UnitedÐ ðG ÐStates€are€not€acquired€for€purposes€of€fulfillingÐ ÈðH Ðthe€contract€with€Y.€€€€Ð  ÈI ÐÌà ® à(xvi)€€A,€a€foreign€subsidiary€of€U.S.€companyÐ PxK ÐB,€has€a€contract€with€boycotting€country€Y€toÐ (PL Ðconduct€oil€drilling€operations€in€that€country.€€InÐ  (M Ðconducting€these€operations,€A€from€time€to€timeÐ Ø N Ðseeks€certain€technical€advice€from€B€regardingÐ °!ØO Ðthe€operation€of€the€drilling€rigs.Ð ˆ"°P ÐÌAððs€contract€with€Y€is€in€U.S.€commerce,€becauseÐ 8$`R ÐBððs€services€are€sought€for€purposes€of€fulfillingÐ %8S Ðthe€contract€with€Y€and€are€part€of€the€servicesÐ è% T Ðultimately€provided€to€Y.€€€€Ð À&è U ÐÌà ® à(xvii)€€A,€a€controlled€foreign€subsidiary€of€U.S.Ð p(˜"W Ðcompany€B,€enters€into€a€contract€to€sellÐ H)p#X Ðtypewriters€to€boycotting€country€Y.€€A€is€locatedÐ  *H$Y Ðin€non-boycotting€country€P.€€None€of€theÐ ø* %Z Ðcomponents€are€acquired€from€the€United€States.€Ð Ð+ø%[ ÐA€engages€C,€a€U.S.€shipping€company,€toÐ ¨,Ð&\ Ðtransport€the€typewriters€from€P€to€Y.Ð Ø ÐÌAððs€sales€to€Y€are€not€in€U.S.€commerce,€becauseÐ ˆ° Ðin€carrying€Aððs€goods,€C€is€providing€an€ancillaryÐ `ˆ Ðservice€to€A€and€not€a€service€to€Y.€€€€Ð 8 ` ÐÌà F à(xviii)€€Same€as€(xvii),€except€that€Aððs€contractÐ è  Ðwith€Y€calls€for€title€to€pass€to€Y€in€P.€€InÐ À è Ðaddition,€the€contract€calls€for€A€to€engage€aÐ ˜ À Ðcarrier€to€make€delivery€to€Y.Ð p ˜  ÐÌAððs€sales€to€Y€are€in€U.S.€commerce,€because€inÐ  H  Ðcarrying€Yððs€goods,€C€is€providing€a€service€to€AÐ ø  Ðwhich€is€ultimately€provided€to€Y.€€€€Ð Ðø  ÐÌà F à(xix)€€A,€a€controlled€foreign€subsidiary€of€U.S.Ð €¨  Ðcompany€B,€has€general€product€liabilityÐ X€  Ðinsurance€with€U.S.€company€C.€€Foreign-originÐ 0X Ðgoods€sold€from€time€to€time€by€A€to€boycottingÐ 0 Ðcountry€Y€are€covered€by€the€insurance€policy.Ð à ÐÌAððs€sales€to€Y€are€not€in€U.S.€commerce,€becauseÐ ¸ Ðthe€insurance€provided€by€C€is€an€ancillaryÐ h Ðservice€provided€to€A€which€is€not€ultimatelyÐ @h Ðprovided€to€Y.€€€€Ð @ ÐÌà F à(xx)€€A,€a€controlled€foreign€subsidiary€of€U.S.Ð Èð Ðcompany€B,€manufactures€automobiles€abroadÐ  È Ðunder€a€license€agreement€with€B.€€From€time€toÐ x  Ðtime,€A€sells€such€goods€to€boycotting€country€Y.Ð Px ÐÌAððs€sales€to€Y€are€not€in€U.S.€commerce,€becauseÐ  ( Ðthe€rights€conveyed€by€the€license€are€notÐ Ø   Ðacquired€for€the€specific€purpose€of€engaging€inÐ °!Ø! Ðtransactions€with€Y.Ð ˆ"°" ÐÌÓ  ÓÔ‡&Ø{%%%&rfÔÔ& b Ô(e)€€ð ðIntentððÔ#†%&rf%%&Ø{Sê#ÔÐ 8$`$ ÐÓGêÓÌÔ‡`&¡z%%%&rfÔ(1)Ô#†%&rf%%`&¡zÚê#Ô€€This€part€prohibits€a€United€States€personÐ æ% & Ðfrom€taking€or€knowingly€agreeing€to€take€certainÔ'b8$rêÔÐ Â&ê ' Ðspecified€actions€with€intent€to€comply€with,Ð š'Â!( Ðfurther,€or€support€an€unsanctioned€foreignÐ r(š") Ðboycott.Ð J)r#* ÐÌÔ‡a&¡z%%%&rfÔ(2)Ô#†%&rf%%a&¡zYì#Ô€€A€United€States€person€has€the€intent€toÐ ú*"%, Ðcomply€with,€further,€or€support€an€unsanctionedÐ Ö+þ%- Ðforeign€boycott€when€such€a€boycott€is€at€leastÐ ®,Ö&. Ðone€of€the€reasons€for€that€personððs€decision€†Ð Ø. Ðwhether€to€take€a€particular€prohibited€action.€€SoÐ °Ø/ Ðlong€as€that€is€at€least€one€of€the€reasons€for€thatÐ ˆ°0 Ðpersonððs€action,€a€violation€occurs€regardless€ofÐ `ˆ1 Ðwhether€the€prohibited€action€is€also€taken€forÐ 8 `2 Ðnon-boycott€reasons.€€Stated€differently,€the€factÐ  83 Ðthat€such€action€was€taken€for€legitimate€businessÐ è 4 Ðreasons€does€not€remove€that€action€from€theÐ À è5 Ðscope€of€this€part€if€compliance€with€anÐ ˜ À6 Ðunsanctioned€foreign€boycott€was€also€a€reasonÐ p ˜7 Ðfor€the€action.Ð Hp8 ÐÌÔ‡b&¡z%%%&rfÔ(3)Ô#†%&rf%%b&¡z?ð#Ô€€Intent€is€a€necessary€element€of€any€violationÐ ø : Ðof€any€of€the€prohibitions€under€ðð760.2.€€It€is€notÐ Ôü ; Ðsufficient€that€one€take€action€that€is€specificallyÐ ¬Ô < Ðprohibited€by€this€part.€€It€is€essential€that€oneÐ „¬ = Ðtake€such€action€with€intent€to€comply€with,Ð \„ > Ðfurther,€or€support€an€unsanctioned€foreignÐ 4\? Ðboycott.€€Accordingly,€a€person€whoÐ  4@ Ðinadvertently,€without€boycott€intent,€takes€aÐ ä A Ðprohibited€action,€does€not€commit€any€violationÐ ¼äB Ðof€this€part.Ð ”¼C ÐÌÔ‡c&¡z%%%&rfÔ(4)Ô#†%&rf%%c&¡zó#Ô€€Intent€in€this€context€means€the€reason€orÐ DlE Ðpurpose€for€oneððs€behavior.€€It€does€not€mean€thatÐ  HF Ðone€has€to€agree€with€the€boycott€in€question€orÐ ø G Ðdesire€that€it€succeed€or€that€it€be€furthered€orÐ ÐøH Ðsupported.€€But€it€does€mean€that€the€reason€whyÐ ¨ÐI Ða€particular€prohibited€action€was€taken€must€beÐ €¨J Ðestablished.Ð X€K ÐÌÔ‡d&¡z%%%&rfÔ(5)Ô#†%&rf%%d&¡zõ#Ô€€Reason€or€purpose€can€be€proved€byÐ  0M Ðcircumstantial€evidence.€€For€example,€if€a€personÐ ä N Ðreceives€a€request€to€supply€certain€boycottÐ ¼!äO Ðinformation,€the€furnishing€of€which€is€prohibitedÐ ”"¼P Ðby€this€part,€and€he€knowingly€supplies€thatÐ l#”Q Ðinformation€in€response,€he€clearly€intends€toÐ D$lR Ðcomply€with€that€boycott€request.€€It€is€irrelevantÐ %DS Ðthat€he€may€disagree€with€or€object€to€the€boycottÐ ô% T Ðitself.€€Information€will€be€deemed€to€be€furnishedÐ Ì&ô U Ðwith€the€requisite€intent€if€the€person€furnishingÐ ¤'Ì!V Ðthe€information€knows€that€it€was€sought€forÐ |(¤"W Ðboycott€purposes.€€On€the€other€hand,€if€a€personÐ T)|#X Ðrefuses€to€do€business€with€someone€who€happensÐ ,*T$Y Ðto€be€blacklisted,€but€the€reason€is€because€thatÐ +,%Z Ðperson€produces€an€inferior€product,€the€requisiteÐ Ü+&[ Ðintent€does€not€exist.Ð ´,Ü&\ ЇÔ‡e&¡z%%%&rfÔ(6)Ô#†%&rf%%e&¡zƒù#Ô€€Actions€will€be€deemed€to€be€taken€withÐ Ø Ðintent€to€comply€with€an€unsanctioned€foreignÐ ´Ü Ðboycott€if€the€person€taking€such€action€knew€thatÐ Œ´ Ðsuch€action€was€required€or€requested€for€boycottÐ dŒ Ðreasons.€€On€the€other€hand,€the€mere€absence€ofÐ < d Ða€business€relationship€with€a€blacklisted€personÐ  < Ðor€with€or€in€a€boycotted€country€does€notÐ ì  Ðindicate€the€existence€of€the€requisite€intent.Ð Ä ì ÐÌÔ‡f&¡z%%%&rfÔ(7)Ô#†%&rf%%f&¡zäû#Ô€€In€seeking€to€determine€whether€the€requisiteÐ t œ  Ðintent€exists,€all€available€evidence€will€beÐ Px  Ðexamined.Ð (P  ÐÌà@““¸ àEXAMPLES€OF€ð ðINTENTððˆÐ Ø  ÐÌThe€following€examples€are€intended€to€illustrateÐ ˆ°  Ðthe€factors€which€will€be€considered€inÐ `ˆ  Ðdetermining€whether€the€required€intent€exists.€Ð 8` ÐThey€are€illustrative,€not€comprehensive.€€€€Ð 8 ÐÌà F à(i)€€U.S.€person€A€does€business€in€boycottingÐ Àè Ðcountry€Y.€€In€selecting€firms€to€supply€goods€forÐ ˜À Ðshipment€to€Y,€A€chooses€supplier€B€because€BððsÐ p˜ Ðproducts€are€less€expensive€and€of€higher€qualityÐ Hp Ðthan€the€comparable€products€of€supplier€C.€€AÐ  H Ðknows€that€C€is€blacklisted,€but€that€is€not€aÐ ø  Ðreason€for€Aððs€selection€of€B.Ð Ðø Ðà F àà Ü àà r àà  àÌAððs€choice€of€B€rather€than€C€is€not€action€withÐ €¨ Ðintent€to€comply€with€Yððs€boycott,€because€CððsÐ X€ Ðblacklist€status€is€not€a€reason€for€Aððs€action.Ð 0X ÐÌà F à(ii)€€Same€as€(i),€except€that€A€chooses€B€ratherÐ à   Ðthan€C€in€part€because€C€is€blacklisted€by€Y.Ð ¸!à! ÐÌSince€Cððs€blacklist€status€is€a€reason€for€AððsÐ h## Ðchoice,€Aððs€action€is€taken€with€intent€to€complyÐ @$h$ Ðwith€Yððs€boycott.€€€€Ð %@% ÐÌà F à(iii)€€U.S.€person€A€bids€on€a€tender€issued€byÐ È&ð ' Ðboycotting€country€Y.€€A€inadvertently€fails€toÐ  'È!( Ðnotice€a€prohibited€certification€which€appears€inÐ x( ") Ðthe€tender€document.€Aððs€bid€is€accepted.Ð P)x#* ÐÌAððs€action€in€bidding€was€not€taken€with€intent€toÐ +(%, Ðcomply€with€Yððs€boycott,€because€the€boycott€wasÐ Ø+&- Ðnot€a€reason€for€Aððs€action.Ð °,Ø&. Їà ® à(iv)€€U.S.€bank€A€engages€in€letter€of€creditÐ Ø. Ðtransactions,€in€favor€of€U.S.€beneficiaries,Ð °Ø/ Ðinvolving€the€shipments€of€U.S.€goods€toÐ ˆ°0 Ðboycotting€country€Y.€€As€A€knows,€such€lettersÐ `ˆ1 Ðof€credit€routinely€contain€conditions€requiringÐ 8 `2 Ðprohibited€certifications.€€A€fails€to€takeÐ  83 Ðreasonable€steps€to€prevent€the€implementation€ofÐ è 4 Ðsuch€letters€of€credit.€€A€receives€forÐ À è5 Ðimplementation€a€letter€of€credit€which€in€factÐ ˜ À6 Ðcontains€a€prohibited€condition€but€does€notÐ p ˜7 Ðexamine€the€letter€of€credit€to€determine€whetherÐ Hp8 Ðit€contains€such€a€condition.Ð  H 9 ÐÌAlthough€Yððs€boycott€may€not€be€a€specificÐ Ðø ; Ðreason€for€Aððs€action€in€implementing€the€letter€ofÐ ¨Ð < Ðcredit€with€a€prohibited€condition,€all€availableÐ €¨ = Ðevidence€shows€that€Aððs€action€was€taken€withÐ X€ > Ðintent€to€comply€with€the€boycott,€because€AÐ 0X? Ðknows€or€should€know€that€its€procedures€resultÐ 0@ Ðin€compliance€with€the€boycott.Ð àA ÐÌà ® à(v)€€U.S.€bank€A€engages€in€letter€of€creditÐ ¸C Ðtransactions,€in€favor€of€U.S.€beneficiaries,Ð hD Ðinvolving€the€shipment€of€U.S.€goods€toÐ @hE Ðboycotting€country€Y.€€As€A€knows,€theÐ @F Ðdocumentation€accompanying€such€letters€ofÐ ðG Ðcredit€sometimes€contains€prohibitedÐ ÈðH Ðcertifications.€€In€accordance€with€standardÐ  ÈI Ðbanking€practices€applicable€to€A,€it€does€notÐ x J Ðexamine€such€accompanying€documentation.€€AÐ PxK Ðreceives€a€letter€of€credit€in€favor€of€a€U.S.Ð (PL Ðbeneficiary.€€The€letter€of€credit€itself€contains€noÐ  (M Ðprohibited€conditions.€€However,€theÐ Ø N Ðaccompanying€documentation,€which€A€does€notÐ °!ØO Ðexamine,€does€contain€such€a€condition.Ð ˆ"°P ÐÌAll€available€evidence€shows€that€Aððs€action€inÐ 8$`R Ðimplementing€the€letter€of€credit€was€not€takenÐ %8S Ðwith€intent€to€comply€with€the€boycott,€because€AÐ è% T Ðhas€no€affirmative€obligation€to€go€beyondÐ À&è U Ðapplicable€standard€banking€practices€inÐ ˜'À!V Ðimplementing€letters€of€credit.€€€€Ð p(˜"W ÐÌ(vi)€€A,€a€U.S.€company,€is€considering€opening€aÐ  *H$Y Ðmanufacturing€facility€in€boycotted€country€X.€€AÐ ø* %Z Ðalready€has€such€a€facility€in€boycotting€countryÐ Ð+ø%[ ÐY.€€After€exploring€the€possibilities€in€X,€AÐ ¨,Ð&\ Ðconcludes€that€the€market€does€not€justify€theÐ Ø Ðmove.€€A€is€aware€that€if€it€did€open€a€plant€in€X,Ð °Ø ÐY€might€object€because€of€Yððs€boycott€of€X.Ð ˆ° ÐHowever€Yððs€possible€objection€is€not€a€reasonÐ `ˆ Ðfor€Aððs€decision€not€to€open€a€plant€in€X.Ð 8 ` ÐÌAððs€decision€not€to€proceed€with€the€plant€in€X€isÐ è  Ðnot€action€with€intent€to€comply€with€Yððs€boycott,Ð À è Ðbecause€Yððs€boycott€of€X€is€not€a€reason€for€AððsÐ ˜ À Ðdecision.€€€€Ð p ˜  ÐÌà F à(vii)€€Same€as€(vi),€except€that€after€exploringÐ  H  Ðthe€business€possibilities€in€X,€A€concludes€thatÐ ø  Ðthe€market€does€justify€the€move€to€X.€€However,Ð Ðø  ÐA€does€not€open€the€plant€because€of€Yððs€possibleÐ ¨Ð  Ðobjections€due€to€Yððs€boycott€of€X.Ð €¨  ÐÌAððs€decision€not€to€proceed€with€the€plant€in€X€isÐ 0X Ðaction€taken€with€intent€to€comply€with€YððsÐ 0 Ðboycott,€because€Yððs€boycott€is€a€reason€for€AððsÐ à Ðdecision.€€€€Ð ¸à ÐÌà F à(viii)€€A,€a€U.S.€chemical€manufacturer,Ð h Ðreceives€a€ð ðboycott€questionnaireðð€fromÐ @h Ðboycotting€country€Y€asking,€among€other€things,Ð @ Ðwhether€A€has€any€plants€located€in€boycottedÐ ð Ðcountry€X.€€A,€which€has€never€supported€YððsÐ Èð Ðboycott€of€X,€responds€to€Yððs€questionnaire,Ð  È Ðindicating€affirmatively€that€it€does€have€plants€inÐ x  ÐX€and€that€it€intends€to€continue€to€have€plants€inÐ Px ÐX.Ð (P ÐÌAððs€responding€to€Yððs€questionnaire€is€deemed€toÐ Ø   Ðbe€action€with€intent€to€comply€with€Yððs€boycottÐ °!Ø! Ðbecause€A€knows€that€the€questionnaire€isÐ ˆ"°" Ðboycott-related.€€It€is€irrelevant€that€A€does€notÐ `#ˆ# Ðalso€wish€to€support€Yððs€boycott.€€€€Ð 8$`$ ÐÌà F à(ix)€€U.S.€company€A€has€a€manufacturingÐ è% & Ðfacility€in€boycotted€country€X.€€A€receives€anÐ À&è ' Ðinvitation€to€bid€on€a€construction€project€inÐ ˜'À!( Ðboycotting€country€Y.€€The€invitation€states€thatÐ p(˜") Ðall€bidders€must€complete€a€boycott€questionnaireÐ H)p#* Ðand€send€it€in€with€the€bid.€€The€questionnaireÐ  *H$+ Ðasks€for€information€about€Aððs€businessÐ ø* %, Ðrelationships€with€X.€€Regardless€of€whether€AððsÐ Ð+ø%- Ðbid€is€successful,€A€intends€to€continue€itsÐ ¨,Ð&. Ðbusiness€in€X€undiminished€and€in€fact€isÐ Ø. Ðexploring€and€intends€to€continue€exploring€anÐ °Ø/ Ðexpansion€of€its€activities€in€X€without€regard€toÐ ˆ°0 ÐYððs€boycott.Ð `ˆ1 ÐÌA€may€not€answer€the€questionnaire,€because,Ð  83 Ðdespite€Aððs€intentions€with€regard€to€its€businessÐ è 4 Ðoperations€in€X,€Yððs€request€for€completion€of€theÐ À è5 Ðquestionnaire€is€for€boycott€purposes€and€byÐ ˜ À6 Ðresponding,€Aððs€action€would€be€taken€with€intentÐ p ˜7 Ðto€comply€with€Yððs€boycott.à Ð àÐ Hp8 Ðà ® àà D àà Ú àÌÌÔ  Ôò òÓ  Óðð760.2Ô €t¯ÔÐ Ðø ; ÐÌPROHIBITIONSÐ €¨ = Ðó óÓ¿ÓÌÓ  ÓÔ‡&Ø{%%%&rfÔ(a)€€Refusals€to€do€businessÔ#†%&rf%%&Ø{>#ÔÐ 0X? ÐÓ2ÓÌÓ  Óà@@¸¸¸ àPROHIBITION€AGAINST€REFUSALS€Ð ÞA ÐTO€DO€BUSINESSÐ ¶ÞB ÐÓÂÓÌÔ‡h&¡z%%%&rfÔ(1)Ô#†%&rf%%h&¡zF#Ô€€No€United€States€person€may:€refuse,Ð fŽD Ðknowingly€agree€to€refuse,€require€any€otherÐ BjE Ðperson€to€refuse,€or€knowingly€agree€€€to€requireÐ BF Ðany€other€person€to€refuse,€to€do€business€with€orÐ òG Ðin€a€boycotted€country,€with€any€business€concernÐ ÊòH Ðorganized€under€the€laws€of€a€boycotted€country,Ð ¢ÊI Ðwith€any€national€or€resident€of€a€boycottedÐ z¢J Ðcountry,€or€with€any€other€person,€when€suchÐ RzK Ðrefusal€is€pursuant€to€an€agreement€with€theÐ *RL Ðboycotting€country,€or€a€requirement€of€theÐ  *M Ðboycotting€country,€or€a€request€from€€€or€onÐ Ú N Ðbehalf€of€the€boycotting€coun‚try.Ð ²!ÚO ÐÌÔ‡i&¡z%%%&rfÔ(2)Ô#†%&rf%%i&¡zœ!#Ô€€Generally,€a€refusal€to€do€business€under€thisÐ b#ŠQ Ðsection€consists€of€action€that€excludes€a€personÐ >$fR Ðor€country€from€a€transaction€for€boycott€reasons.€Ð %>S ÐThis€includes€a€situation€in€which€a€United€StatesÐ î% T Ðperson€chooses€or€selects€one€person€over€anotherÐ Æ&î U Ðon€a€boycott€basis€or€takes€action€to€carry€outÐ ž'Æ!V Ðanother€personððs€boycott-based€selection€when€heÐ v(ž"W Ðknows€or€has€reason€to€know€that€the€otherÐ N)v#X Ðpersonððs€selection€is€boycott-based.Ð &*N$Y ÐÌÔ‡j&¡z%%%&rfÔ(3)Ô#†%&rf%%j&¡zI$#Ô€€Refusals€to€do€business€which€are€prohibitedÐ Ö+þ%[ Ðby€this€section€include€not€only€specific€refusals,Ð ²,Ú&\ Ðbut€also€refusals€implied€by€a€course€or€pattern€ofÐ Ø Ðconduct.€€There€need€not€be€a€specific€offer€andÐ °Ø Ðrefusal€to€constitute€a€refusal€to€do€business;€aÐ ˆ° Ðrefusal€may€occur€when€a€United€States€personÐ `ˆ Ðhas€a€financial€or€commercial€opportunity€andÐ 8 ` Ðdeclines€for€boycott€reasons€to€consider€or€acceptÐ  8 Ðit.Ð è  ÐÌÔ‡k&¡z%%%&rfÔ(4)Ô#†%&rf%%k&¡zÑ&#Ô€€A€United€States€personððs€use€of€either€aÐ ˜ À Ðboycott-based€list€of€persons€with€whom€he€willÐ t œ  Ðnot€deal€(a€so-called€ð ðblacklistðð)€or€aÐ Lt  Ðboycott-based€list€of€persons€with€whom€he€willÐ $L  Ðdeal€(a€†so-called€ð ðwhitelistðð)€constitutes€a€refusalÐ ü$  Ðto€do€business.Ð Ôü  ÐÌÔ‡l&¡z%%%&rfÔ(5)Ô#†%&rf%%l&¡z—(#Ô€€An€agreement€by€a€United€States€person€toÐ „¬  Ðcomply€generally€with€the€laws€of€the€boycottingÐ `ˆ  Ðcountry€with€which€it€is€doing€business€or€anÐ 8` Ðagreement€that€local€laws€of€the€boycottingÐ 8 Ðcountry€shall€apply€or€govern€is€not,€in€and€ofÐ è Ðitself,€a€refusal€to€do€business.€€Nor,€in€and€ofÐ Àè Ðitself,€is€use€of€a€contractual€clause€explicitlyÐ ˜À Ðrequiring€a€person€to€assume€the€risk€of€loss€ofÐ p˜ Ðnon-delivery€of€his€products€a€refusal€to€doÐ Hp Ðbusiness€with€any€person€who€will€not€or€cannotÐ  H Ðcomply€with€such€a€clause.€(But€see€ðð760.4€of€thisÐ ø  Ðpart€on€ð ðEvasion.ðð)Ð Ðø ÐÌÔ‡m&¡z%%%&rfÔ(6)Ô#†%&rf%%m&¡zö+#Ô€€If,€for€boycott€reasons,€a€United€StatesÐ €¨ Ðgeneral€manager€chooses€one€supplier€overÐ \„ Ðanother,€or€enters€into€a€contract€with€oneÐ 4\ Ðsupplier€over€another,€or€advises€its€client€to€doÐ  4 Ðso,€then€the€general€managerððs€actions€constituteÐ ä   Ða€refusal€to€do€business€under€this€section.€Ð ¼!ä! ÐHowever,€it€is€not€a€refusal€to€do€business€underÐ ”"¼" Ðthis€section€for€a€United€States€person€to€provideÐ l#”# Ðmanagement,€procurement,€or€other€pre-awardÐ D$l$ Ðservices€for€another€person€so€long€as€theÐ %D% Ðprovision€of€such€pre-award€services€is€customaryÐ ô% & Ðfor€that€firm€(or€industry€of€which€the€firm€is€aÐ Ì&ô ' Ðpart),€without€regard€to€the€boycotting€orÐ ¤'Ì!( Ðnon-boycotting€character€of€the€countries€inÐ |(¤") Ðwhich€they€are€performed,€and€the€United€StatesÐ T)|#* Ðperson,€in€providing€such€services,€does€not€act€toÐ ,*T$+ Ðexclude€a€person€or€country€from€the€transactionÐ +,%, Ðfor€boycott€reasons,€or€otherwise€take€actions€thatÐ Ü+&- Ðare€boycott-based.€€For€example,€a€United€StatesÐ ´,Ü&. Ðperson€under€contract€to€provide€generalÐ Ø. Ðmanagement€services€in€connection€with€aÐ °Ø/ Ðconstruction€project€in€a€boycotting€country€mayÐ ˆ°0 Ðcompile€lists€of€qualified€bidders€for€the€client€ifÐ `ˆ1 Ðthat€service€is€a€customary€one€and€if€persons€whoÐ 8 `2 Ðare€qualified€are€not€excluded€from€that€listÐ  83 Ðbecause€they€are€blacklisted.Ð è 4 ÐÌÔ‡n&¡z%%%&rfÔ(7)Ô#†%&rf%%n&¡z3#Ô€€With€respect€to€post-award€services,€if€aÐ ˜ À6 Ðclient€makes€a€boycott-based€selection,€actionsÐ t œ7 Ðtaken€by€the€United€States€general€manager€orÐ Lt8 Ðcontractor€to€carry€out€the€clientððs€choice€areÐ $L 9 Ðthem‚selves€refusals€to€do€business€if€the€UnitedÐ ü$ : ÐStates€contractor€knows€or€has€reason€to€knowÐ Ôü ; Ðthat€the€clientððs€choice€was€boycott-based.€€(It€isÐ ¬Ô < Ðirrelevant€whether€the€United€States€contractorÐ „¬ = Ðalso€provided€pre-award€services.)€€Such€actionsÐ \„ > Ðinclude€entering€into€a€contract€with€the€selectedÐ 4\? Ðsupplier,€notifying€the€supplier€of€the€clientððsÐ  4@ Ðchoice,€executing€a€contract€on€behalf€of€theÐ ä A Ðclient,€arranging€for€inspection€and€shipment€ofÐ ¼äB Ðthe€supplierððs€goods,€or€taking€any€other€action€toÐ ”¼C Ðeffect€the€clientððs€choice.€€(But€see€ðð760.3(d)€onÐ l”D Ðð ðCompliance€with€Unilateral€Selectionðð€as€it€mayÐ DlE Ðapply€to€post-award€services.)Ð DF ÐÌÔ‡o&¡z%%%&rfÔ(8)Ô#†%&rf%%o&¡zá7#Ô€€An€agreement€is€not€a€prerequisite€to€aÐ ÌôH Ðviolation€of€this€section€since€the€prohibitionÐ ¨ÐI Ðextends€to€actions€taken€pursuant€not€only€toÐ €¨J Ðagreements€but€also€to€requirements€of,€andÐ X€K Ðrequests€from€or€on€behalf€of,€a€boycottingÐ 0XL Ðcountry.Ð  0M ÐÌÔ‡p&¡z%%%&rfÔ(9)Ô#†%&rf%%p&¡zˆ9#Ô€€Agreements€under€this€section€may€be€eitherÐ ¸!àO Ðexpress€or€implied€by€a€course€or€pattern€ofÐ ”"¼P Ðconduct.€€There€need€not€be€a€direct€request€fromÐ l#”Q Ða€boycotting€country€for€action€by€a€United€StatesÐ D$lR Ðperson€to€have€been€taken€pursuant€to€anÐ %DS Ðagreement€with€or€requirement€of€a€boycottingÐ ô% T Ðcountry.Ð Ì&ô U ÐÌÔ‡q&¡z%%%&rfÔ(10)Ô#†%&rf%%q&¡zz;#Ô€€This€prohibition,€like€all€others,€applies€onlyÐ |(¤"W Ðwith€respect€to€a€United€States€personððs€activitiesÐ X)€#X Ðin€the€interstate€or€foreign€commerce€of€theÐ 0*X$Y ÐUnited€States€and€only€when€such€activities€areÐ +0%Z Ðundertaken€with€intent€to€comply€with,€further,€orÐ à+&[ Ðsupport€an€unsanctioned€foreign€boycott.€TheÐ ¸,à&\ Ðmere€absence€of€a€business€relationship€with€or€inÐ Ø Ðthe€boycotted€country,€with€any€business€concernÐ °Ø Ðorganized€under€the€laws€of€the€boycottedÐ ˆ° Ðcountry,€with€national(s)€or€resident(s)€of€theÐ `ˆ Ðboycotted€country,€or€with€any€other€person€doesÐ 8 ` Ðnot€indicate€the€existence€of€the€required€intent.Ð  8 ÐÌÓ  ÓEXAMPLES€OF€REFUSALS€AND€Ð À è Ðà@@¿¿¸ àAGREEMENTS€TO€REFUSE€TOÐ ˜ À Ðà@@n n ¸ àDO€BUSINESSÐ p ˜  ÐÓû>ÓÌThe€following€examples€are€intended€to€giveÐ  H  Ðguidance€in€determining€the€circumstances€inÐ ø  Ðwhich,€in€a€boycott€situation,€a€refusal€to€doÐ Ðø  Ðbusiness€or€an€agreement€to€refuse€to€do€businessÐ ¨Ð  Ðis€prohibited.€€They€are€illustrative,€notÐ €¨  Ðcomprehensive.Ð X€  ÐÌà@ûû¸ àREFUSALS€TO€DO€BUSINESSˆÐ 0 ÐÌà F à(i)€€A,€a€U.S.€manufacturer,€receives€an€orderÐ ¸à Ðfor€its€products€from€boycotting€country€Y.€€ToÐ ¸ Ðfill€that€order,€A€solicits€bids€from€U.S.Ð h Ðcompanies€B€and€C,€manufacturers€ofÐ @h Ðcomponents€used€in€Aððs€products.€€A€does€not,Ð @ Ðhowever,€solicit€bids€from€U.S.€companies€D€orÐ ð ÐE,€which€also€manufacture€such€components,Ð Èð Ðbecause€it€knows€that€D€and€E€are€restricted€fromÐ  È Ðdoing€business€in€Y€and€that€their€products€are,Ð x  Ðtherefore,€not€importable€into€that€country.Ð Px ÐÌCompany€A€may€not€refuse€to€solicit€bids€from€DÐ  ( Ðand€E€for€boycott€reasons,€because€to€do€so€wouldÐ Ø   Ðconstitute€a€refusal€to€do€business€with€thoseÐ °!Ø! Ðpersons.Ð ˆ"°" Ðà F àà Ü àà r àà  àÌà F à(ii)€€A,€a€U.S.€exporter,€uses€company€B,€a€U.S.Ð 8$`$ Ðinsurer,€to€insure€the€shipment€of€its€goods€to€allÐ %8% Ðits€overseas€customers.€€For€the€first€time,€AÐ è% & Ðreceives€an€order€for€its€products€from€boycottingÐ À&è ' Ðcountry€Y.€€Knowing€that€B€is€on€the€blacklist€ofÐ ˜'À!( ÐY,€A€arranges€with€company€C,€a€non-blacklisted€Ð p(˜") ÐÌU.S.€insurer,€to€insure€the€shipment€of€its€goods€toÐ  *H$+ ÐY.Ð ø* %, ÐÌAððs€action€constitutes€a€refusal€to€do€businessÐ ¨,Ð&. Ðwith€B.€Ð Ø. ÐÌà ® à(iii)€€A,€a€U.S.€exporter,€purchases€all€itsÐ ˆ°0 Ðliability€insurance€from€company€B,€a€U.S.Ð `ˆ1 Ðcompany€that€does€business€in€boycotted€countryÐ 8 `2 ÐX.€€A€wishes€to€expand€its€operations€into€countryÐ  83 ÐY,€the€boycotting€country.€€Before€doing€so,€AÐ è 4 Ðdecides€to€switch€from€insurer€B€to€insurer€C€inÐ À è5 Ðanticipation€of€a€request€from€Y€that€A€sever€itsÐ ˜ À6 Ðrelations€with€B€as€a€condition€of€doingÐ p ˜7 Ðbusiness€in€Y.Ð Hp8 ÐÌA€may€not€switch€insurers€for€this€reason,€becauseÐ ø : Ðdoing€so€would€constitute€a€refusal€to€do€businessÐ Ðø ; Ðwith€B.Ð ¨Ð < ÐÌà ® à(iv)€€U.S.€company€A€exports€goods€toÐ X€ > Ðboycotting€country€Y.€€In€selecting€vessels€toÐ 0X? Ðtransport€the€goods€to€Y,€A€chooses€only€fromÐ 0@ Ðamong€carriers€which€call€at€ports€in€Y.Ð àA ÐÌAððs€action€is€not€a€refusal€to€do€business€withÐ ¸C Ðcarriers€which€do€not€call€at€ports€in€Y.Ð hD ÐÌà ® à(v)€€A,€a€U.S.€bank€with€a€branch€office€inÐ @F Ðboycotting€country€Y,€sends€representatives€toÐ ðG Ðboycotted€country€X€to€discuss€plans€for€openingÐ ÈðH Ða€branch€office€in€X.€€Upon€learning€of€theseÐ  ÈI Ðdiscussions,€an€official€of€the€local€boycott€officeÐ x J Ðin€Y€advises€Aððs€local€branch€manager€that€if€AÐ PxK Ðopens€an€office€in€X€it€will€no€longer€be€allowedÐ (PL Ðto€do€business€in€Y.€€As€a€result€of€thisÐ  (M Ðnotification,€A€decides€to€abandon€its€plans€toÐ Ø N Ðopen€a€branch€in€X.Ð °!ØO ÐÌBank€A€may€not€abandon€its€plans€to€open€aÐ `#ˆQ Ðbranch€in€X€as€a€result€of€Yððs€notification,Ð 8$`R Ðbecause€doing€so€would€constitute€a€refusal€to€doÐ %8S Ðbusiness€in€boycotted€country€X.Ð è% T ÐÌà ® à(vi)€€A,€a€U.S.€company€that€manufacturesÐ ˜'À!V Ðoffice€equipment,€has€been€restricted€from€doingÐ p(˜"W Ðbusiness€in€boycotting€country€Y€because€of€itsÐ H)p#X Ðbusiness€dealings€with€boycotted€country€X.€€InÐ  *H$Y Ðan€effort€to€have€itself€removed€from€YððsÐ ø* %Z Ðblacklist,€A€ceases€its€business€in€X.Ð Ð+ø%[ ÐÐ ¨,Ð&\ ÐAððs€action€constitutes€a€refusal€to€do€business€inÐ Ø Ðboycotted€country€X.Ð °Ø ÐÌà F à(vii)€€A,€a€U.S.€computer€company,€doesÐ `ˆ Ðbusiness€in€boycotting€country€Y.€€A€decides€toÐ 8 ` Ðexplore€business€opportunities€in€boycottedÐ  8 Ðcountry€X.€€After€careful€analysis€of€possibleÐ è  Ðbusiness€opportunities€in€X,€A€decides,€solely€forÐ À è Ðbusiness€reasons,€not€to€market€its€products€in€X.Ð ˜ À ÐÌAððs€decision€not€to€proceed€is€not€a€refusal€to€doÐ Hp  Ðbusiness,€because€it€is€not€based€on€boycottÐ  H  Ðconsiderations.€A€has€no€affirmative€obligation€toÐ ø  Ðdo€business€in€X.Ð Ðø  ÐÌà F à(viii)€€A,€a€U.S.€oil€company€with€operations€inÐ €¨  Ðboycotting€country€Y,€has€regularly€purchasedÐ X€  Ðequipment€from€U.S.€petroleum€equipmentÐ 0X Ðsuppliers€B,€C,€and€D,€none€of€whom€is€on€theÐ 0 Ðblacklist€of€Y.€€Because€of€its€satisfactoryÐ à Ðrelationship€with€B,€C,€and€D,€A€has€not€dealtÐ ¸à Ðwith€other€suppliers,€including€supplier€E,€who€isÐ ¸ Ðblacklisted€by€Y.Ð h ÐÌAððs€failure€affirmatively€to€seek€or€secureÐ @ Ðbusiness€with€blacklisted€supplier€E€is€not€aÐ ð Ðrefusal€to€do€business€with€E.Ð Èð ÐÌà F à(ix)€€Same€as€(viii),€except€U.S.€petroleumÐ x  Ðequip‚ment€supplier€E,€a€company€on€boycottingÐ Px Ðcountry€Yððs€blacklist,€offers€to€supply€U.S.€oilÐ (P Ðcompany€A€with€goods€comparable€to€thoseÐ  ( Ðprovided€by€U.S.€suppliers€B,€C,€and€D.€€A,Ð Ø   Ðbecause€it€has€satisfactory,€establishedÐ °!Ø! Ðrelationships€with€suppliers€B,€C,€and€D,€does€notÐ ˆ"°" Ðaccept€supplier€Eððs€offer.Ð `#ˆ# ÐÌAððs€refusal€of€supplier€Eððs€offer€is€not€a€refusal€toÐ %8% Ðdo€business,€because€it€is€based€solely€onÐ è% & Ðnon-boycott€considerations.€€A€has€no€affirmativeÐ À&è ' Ðobligation€to€do€business€with€E.Ð ˜'À!( ÐÌà F à(x)€€A,€a€U.S.€construction€company,€enters€intoÐ H)p#* Ða€contract€to€build€an€office€complex€inÐ  *H$+ Ðboycotting€country€Y.€€A€receives€bids€from€BÐ ø* %, Ðand€C,€U.S.€companies€that€are€equally€qualifiedÐ Ð+ø%- Ðsuppliers€of€electrical€cable€for€the€project.€€AÐ ¨,Ð&. Ðknows€that€B€is€blacklisted€by€Y€and€that€C€is€not.Ð Ø. ÐA€accepts€Cððs€bid,€in€part€because€C€is€asÐ °Ø/ Ðqualified€as€the€other€potential€supplier€and€inÐ ˆ°0 Ðpart€because€C€is€not€blacklisted.Ð `ˆ1 ÐÌAððs€decision€to€select€supplier€C€instead€ofÐ  83 Ðblacklisted€supplier€B€is€a€refusal€to€do€business,Ð è 4 Ðbecause€the€boycott€was€one€of€the€reasons€forÐ À è5 ÐAððs€decision.Ð ˜ À6 ÐÌà ® à(xi)€€A,€a€U.S.€general€contractor,€has€beenÐ Hp8 Ðretained€to€construct€a€highway€in€boycottingÐ  H 9 Ðcountry€Y.€€A€circulates€an€invitation€to€bid€toÐ ø : ÐU.S.€manufacturers€of€road-building€equipment.€Ð Ðø ; ÐOne€of€the€conditions€listed€in€the€invitation€toÐ ¨Ð < Ðbid€is€that,€in€order€for€A€to€obtain€promptÐ €¨ = Ðservice,€suppliers€will€be€required€to€maintain€aÐ X€ > Ðsupply€of€spare€parts€and€a€service€facility€in€Y.€Ð 0X? ÐA€includes€this€condition€solely€for€commercialÐ 0@ Ðreasons€unrelated€to€the€boycott.€€Because€of€thisÐ àA Ðcondition,€however,€those€suppliers€on€YððsÐ ¸àB Ðblacklist€do€not€bid,€since€they€would€be€unable€toÐ ¸C Ðsatisfy€the€parts€and€services€requirements.Ð hD ÐÌAððs€action€is€not€a€refusal€to€do€business,€becauseÐ @F Ðthe€contractual€condition€was€included€solely€for€Ð ðG Ðlegitimate€business€reasons€and€was€notÐ ÈðH Ðboycott-based.Ð  ÈI ÐÌà ® à(xii)€Company€A,€a€U.S.€oil€company,€purƒÐ PxK Ðchases€drill€bits€from€U.S.€suppliers€for€export€toÐ (PL Ðboycotting€country€Y.€€In€its€purchase€orders,€AÐ  (M Ðincludes€a€provision€requiring€the€supplier€toÐ Ø N Ðmake€delivery€to€Aððs€facilities€in€Y€and€providingÐ °!ØO Ðthat€title€to€the€goods€does€not€pass€until€deliveryÐ ˆ"°P Ðhas€been€made.€€As€is€customary€under€such€anÐ `#ˆQ Ðarrangement,€the€supplier€bears€all€risks€of€loss,Ð 8$`R Ðincluding€loss€from€fire,€theft,€perils€of€the€sea,Ð %8S Ðand€inability€to€clear€customs,€until€title€passes.Ð è% T ÐÌInsistence€on€such€an€arrangement€does€notÐ ˜'À!V Ðconstitute€a€refusal€to€do€business,€because€thisÐ p(˜"W Ðrequirement€is€imposed€on€all€suppliers€whetherÐ H)p#X Ðthey€are€blacklisted€or€not.€€(But€see€ðð760.4€onÐ  *H$Y Ðð ðEvasionðð.)Ð ø* %Z ÐÌà ® à(xiii)€€A,€a€U.S.€engineering€and€constructionÐ ¨,Ð&\ Ðcompany,€contracts€with€a€government€agency€inÐ Ø Ðboycotting€country€Y€to€perform€a€variety€ofÐ °Ø Ðservices€in€connection€with€the€construction€of€aÐ ˆ° Ðlarge€industrial€facility€in€Y.€€Pursuant€to€thisÐ `ˆ Ðcontract,€A€analyzes€the€market€of€prospectiveÐ 8 ` Ðsuppliers,€compiles€a€suggested€bidders€list,Ð  8 Ðanalyzes€the€bids€received,€and€makesÐ è  Ðrecommendations€to€the€client.€€The€clientÐ À è Ðindependently€selects€and€awards€the€contract€toÐ ˜ À Ðsupplier€C€for€boycott€reasons.€€All€of€AððsÐ p ˜  Ðservices€are€per‚formed€without€regard€to€YððsÐ Hp  Ðblacklist€or€any€other€boycott€considerations,€andÐ  H  Ðare€the€type€of€services€A€provides€clients€in€bothÐ ø  Ðboycotting€and€non-boycotting€countries.Ð Ðø  ÐÌAððs€actions€do€not€constitute€a€refusal€to€doÐ €¨  Ðbusiness,€because,€in€the€provision€of€pre-awardÐ X€  Ðservices,€A€has€not€excluded€the€other€bidders€andÐ 0X Ðbecause€A€customarily€provides€such€services€toÐ 0 Ðits€clients.Ð à ÐÌà F à(xiv)€€Same€as€(xiii),€except€that€in€compiling€aÐ ¸ Ðlist€of€prospective€suppliers,€A€deletes€suppliersÐ h Ðhe€knows€his€client€will€refuse€to€select€becauseÐ @h Ðthey€are€blacklisted.€€A€knows€that€including€theÐ @ Ðnames€of€blacklisted€suppliers€will€neitherÐ ð Ðenhance€their€chances€of€being€selected€norÐ Èð Ðprovide€his€client€with€a€useful€service,€theÐ  È Ðfunction€for€which€he€has€been€retained.Ð x  Ðà@¸ ¸ ¸ àˆÌAððs€actions,€which€amount€to€furnishing€aÐ (P Ðso-called€ð ðwhitelistðð,€constitute€refusals€to€doÐ  ( Ðbusiness,€because€Aððs€pre-award€services€haveÐ Ø   Ðnot€been€furnished€without€regard€to€boycottÐ °!Ø! Ðconsiderations.€Ð ˆ"°" ÐÌà F à(xv)€€A,€a€U.S.€construction€firm,€provides€itsÐ 8$`$ Ðboycotting€country€client€with€a€permissible€listÐ %8% Ðof€prospective€suppliers,€B,€C,€D,€and€E.€€TheÐ è% & Ðclient€independently€selects€and€awards€theÐ À&è ' Ðcontract€to€C,€for€boycott€reasons,€and€thenÐ ˜'À!( Ðrequests€A€to€advise€C€of€his€selection,€negotiateÐ p(˜") Ðthe€contract€with€C,€arrange€for€the€shipment,€andÐ H)p#* Ðinspect€the€goods€upon€arrival.€A€knows€that€CÐ  *H$+ Ðwas€chosen€by€the€client€for€boycott€reasons.Ð ø* %, ÐÌAððs€action€in€complying€with€his€clientððsÐ ¨,Ð&. Ðdirection€is€a€refusal€to€do€business,€because€AððsÐ Ø. Іpost‚-award€actions€carry€out€his€clientððs€boy†Ð °Ø/ Ðcott-based€decision.€€(Note:€Whether€Aððs€actionÐ ˆ°0 Ðcomes€with‚in€the€unilateral€selection€exceptionÐ `ˆ1 Ðdepends€upon€factors€discussed€in€ðð760.3(d)€ofÐ 8 `2 Ðthis€part).Ð  83 ÐÌà ® à(xvi)€€Same€as€(xv),€except€that€A€is€buildingÐ À è5 Ðthe€project€on€a€turnkey€basis€and€will€retain€titleÐ ˜ À6 Ðuntil€completion.€€The€client€instructs€A€toÐ p ˜7 Ðcontract€only€with€C.Ð Hp8 ÐÌAððs€action€in€contracting€with€C€constitutes€aÐ ø : Ðrefusal€to€do€business,€because€it€is€action€thatÐ Ðø ; Ðexcludes€blacklisted€persons€from€the€transactionÐ ¨Ð < Ðfor€boycott€reasons.€€(Note:€Whether€Aððs€actionÐ €¨ = Ðcomes€within€the€unilateral€selection€exceptionÐ X€ > Ðdepends€upon€factors€discussed€in€ðð760.3(d)€ofÐ 0X? Ðthis€part).Ð 0@ ÐÌà ® à(xvii)€€A,€a€U.S.€exporter€of€machine€tools,Ð ¸àB Ðreceives€an€order€for€drill€presses€from€boycottingÐ ¸C Ðcountry€Y.€€The€cover€letter€from€YððsÐ hD Ðprocurement€official€states€that€A€was€selectedÐ @hE Ðover€other€U.S.€Ð @F Ðmanufacturers€in€part€because€A€is€not€on€YððsÐ ðG Ðblacklist.Ð ÈðH ÐÌAððs€action€in€filling€this€order€is€not€a€refusal€toÐ x J Ðdo€business,€because€A€has€not€excluded€anyoneÐ PxK Ðfrom€the€transaction.Ð (PL ÐÌà ® à(xviii)€€A,€a€U.S.€engineering€firm€underÐ Ø N Ðcontract€to€construct€a€dam€in€boycotting€countryÐ °!ØO ÐY,€compiles,€on€a€non-boycott€basis,€a€list€ofÐ ˆ"°P Ðpotential€heavy€equipment€suppliers,€includingÐ `#ˆQ Ðinformation€on€their€qualifications€and€priorÐ 8$`R Ðexperience.€€A€then€solicits€bids€from€the€topÐ %8S Ðthree€firms€on€its€list-„B,€C,€and€D„-because€theyÐ è% T Ðare€the€best€qualified.€€None€of€them€happens€toÐ À&è U Ðbe€blacklisted.€€A€does€not€solicit€bids€from€E,€F,Ð ˜'À!V Ðor€G,€the€next€three€firms€on€the€list,€one€of€whomÐ p(˜"W Ðis€on€Yððs€blacklist.Ð H)p#X ÐÌAððs€decision€to€solicit€bids€from€only€B,€C,€and€D,Ð ø* %Z Ðis€not€a€refusal€to€do€business€with€any€person,Ð Ð+ø%[ Ðbecause€the€solicited€bidders€were€not€selected€forÐ ¨,Ð&\ ÐÑzOYÑâ zâѰ°Ñâ zâÑ  Ñboycott€reasons.Ð Ø ÐÌà F à(xix)€€U.S.€bank€A€receives€a€letter€of€credit€inÐ ˆ° Ðfavor€of€U.S.€beneficiary€B.€€The€letter€of€creditÐ `ˆ Ðrequires€B€to€certify€that€he€is€not€blacklisted.€€BÐ 8 ` Ðmeets€all€other€conditions€of€the€letter€of€creditÐ  8 Ðbut€refuses€to€certify€as€to€his€blacklist€status.€€AÐ è  Ðrefuses€to€pay€B€on€the€letter€of€credit€solelyÐ À è Ðbecause€B€refuses€to€certify€as€to€his€blacklistÐ ˜ À Ðstatus.Ð p ˜  ÐÌA€has€refused€to€do€business€with€another€personÐ  H  Ðpursuant€to€a€boycott€requirement€or€request.Ð ø  ÐÌà F à(xx)€€U.S.€bank€A€receives€a€letter€of€credit€inÐ ¨Ð  Ðfavor€of€U.S.€beneficiary€B.€€The€letter€of€creditÐ €¨  Ðrequires€B€to€provide€a€certification€from€theÐ X€  Ðsteamship€line€that€the€vessel€carrying€the€goodsÐ 0X Ðis€not€blacklisted.€€B€seeks€payment€from€A€andÐ 0 Ðmeets€all€other€conditions€of€the€letter€of€creditÐ à Ðbut€refuses€or€is€unable€to€provide€theÐ ¸à Ðcertification€from€the€steamship€line€about€theÐ ¸ Ðvesselððs€blacklist€status.€€A€refuses€to€pay€B€onÐ h Ðthe€letter€of€credit€solely€because€B€cannot€or€willÐ @h Ðnot€provide€the€certification.Ð @ ÐÌA€has€required€another€person€to€refuse€to€doÐ Èð Ðbusiness€pursuant€to€a€boycott€requirement€orÐ  È Ðrequest€by€insisting€that€B€obtain€such€aÐ x  Ðcertificate.€€(Either€A€or€B€may€request€anÐ Px Ðamendment€to€the€letter€of€credit€substituting€aÐ (P Ðcertificate€of€vessel€eligibility,€however.€€SeeÐ  ( ÐExample€(xxi)€below).Ð Ø   ÐÌà F à(xxi)€U.S.€bank€A€receives€a€letter€of€creditÐ ˆ"°" Ðfrom€a€bank€in€boycotting€country€Y€in€favor€ofÐ `#ˆ# ÐU.S.€beneficiary€B.€€The€letter€of€credit€requires€BÐ 8$`$ Ðto€provide€a€certification€from€the€steamship€lineÐ %8% Ðthat€the€vessel€carrying€the€goods€is€eligible€toÐ è% & Ðenter€the€ports€in€Y.€€B€seeks€payment€from€A€andÐ À&è ' Ðmeets€all€other€conditions€of€the€letter€of€credit.€Ð ˜'À!( ÐA€refuses€to€pay€B€solely€because€B€cannot€orÐ p(˜") Ðwill€not€provide€the€certification.Ð H)p#* ÐÌA€has€neither€refused,€nor€required€another€personÐ ø* %, Ðto€refuse,€to€do€business€with€another€personÐ Ð+ø%- Ðpursuant€to€a€boycott€requirement€or€requestÐ ¨,Ð&. Ðbecause€a€request€for€a€vessel€eligibilityÐ Ø. Ðcertificate€to€be€furnished€by€the€steamship€line€isÐ °Ø/ Ðnot€a€prohibited€condition.€(See€Supplement€No.Ð ˆ°0 Ð1€of€this€part,€paragraph€(I)(B),€€ð ðShippingÐ `ˆ1 ÐCertificateðð.)Ð 8 `2 Ðà ® àà D àà Ú àà p àÌà ® à(xxii)€€U.S.€bank€A€confirms€a€letter€of€credit€inÐ è 4 Ðfavor€of€U.S.€beneficiary€B.€€The€letter€of€creditÐ À è5 Ðcontains€a€requirement€that€B€certify€that€he€is€notÐ ˜ À6 Ðblacklisted.€€B€presents€the€letter€of€credit€to€U.S.Ð p ˜7 Ðbank€C,€a€correspondent€of€bank€A.€€B€does€notÐ Hp8 Ðpresent€the€certificate€of€blacklist€status€to€bankÐ  H 9 ÐC,€but,€in€accordance€with€these€rules,€bank€CÐ ø : Ðpays€B,€and€then€presents€the€letter€of€credit€andÐ Ðø ; Ðdocumentation€to€bank€A€for€reimbursement.€Ð ¨Ð < ÐBank€A€refuses€to€reimburse€bank€C€because€theÐ €¨ = Ðblacklist€certification€of€B€is€not€included€in€theÐ X€ > Ðdocumentation.Ð 0X? ÐÌA€has€required€another€person€to€refuse€to€doÐ àA Ðbusiness€with€a€person€pursuant€to€a€boycottÐ ¸àB Ðrequirement€or€request€by€insisting€that€C€obtainÐ ¸C Ðthe€certificate€from€B.Ð hD Ðà ® àà D àà Ú àÌà ® à(xxiii)€€U.S.€bank€A€receives€a€letter€of€credit€inÐ @F Ðfavor€of€U.S.€beneficiary€B.€€The€letter€of€creditÐ ðG Ðrequires€B€to€certify€that€he€is€not€blacklisted.€BÐ ÈðH Ðfails€to€provide€such€a€certification€when€heÐ  ÈI Ðpresents€the€documents€to€A€for€payment.€€AÐ x J Ðnotifies€B€that€the€certification€has€not€beenÐ PxK Ðsubmitted.Ð (PL ÐÌA€has€not€refused€to€do€business€with€anotherÐ Ø N Ðperson€pursuant€to€a€boycott€requirement€byÐ °!ØO Ðnotifying€B€of€the€omitted€certificate.€€A€may€notÐ ˆ"°P Ðrefuse€to€pay€on€the€letter€of€credit,€however,€if€BÐ `#ˆQ Ðstates€that€B€will€not€provide€such€a€certificate.Ð 8$`R ÐÌà ® à(xxiv)€€U.S.€bank€A€receives€a€letter€of€credit€inÐ è% T Ðfavor€of€U.S.€beneficiary€B€from€the€issuing€bankÐ À&è U Ðfor€the€purpose€of€confirmation,€negotiation€orÐ ˜'À!V Ðpayment.€€The€letter€of€credit€requires€B€to€certifyÐ p(˜"W Ðthat€he€is€not€blacklisted.€€A€notifies€B€that€it€isÐ H)p#X Ðcontrary€to€the€policy€of€A€to€handle€letters€ofÐ  *H$Y Ðcredit€containing€this€condition€and€that,€unlessÐ ø* %Z Ðan€amendment€is€obtained€deleting€this€condition,Ð Ð+ø%[ ÐA€will€not€implement€the€letter€of€credit.Ð ¨,Ð&\ ЇA€has€not€refused€to€do€business€with€anotherÐ Ø Ðperson€pursuant€to€a€boycott€requirement,€becauseÐ °Ø ÐA€has€indicated€its€policy€against€implementingÐ ˆ° Ðthe€letter€of€credit€containing€the€term€withoutÐ `ˆ Ðregard€to€Bððs€ability€or€willingness€to€furnish€suchÐ 8 ` Ða€certificate.Ð  8 ÐÌÌÓ  ÓAGREEMENTS€TO€REFUSE€Ð ˜ À ÐTO€DO€à@@ ¸ àBUSINESSÐ p ˜  ÐÓ{“ÓÌà F à(i)€€A,€a€U.S.€construction€firm,€is€retained€byÐ  H  Ðan€agency€of€boycotting€country€Y€to€build€aÐ ø  Ðprimary€school.€€The€proposed€contract€containsÐ Ðø  Ða€clause€stating€that€A€ð ðmay€not€use€goods€orÐ ¨Ð  Ðservices€in€the€project€that€are€produced€orÐ €¨  Ðprovided€by€any€person€restricted€from€having€aÐ X€  Ðbusiness€relationship€with€country€Y€by€reason€ofÐ 0X ÐYððs€boycott€against€country€Xðð.Ð 0 ÐÌAððs€action€in€entering€into€such€a€contract€wouldÐ ¸à Ðconstitute€an€agreement€to€refuse€to€do€business,Ð ¸ Ðbecause€it€is€an€agreement€to€exclude€blacklistedÐ h Ðpersons€from€the€transaction.€€A€may,€however,Ð @h Ðrenegotiate€this€clause€so€that€it€does€not€containÐ @ Ðterms€prohibited€by€this€part.Ð ð ÐÌà F à(ii)€€A,€a€U.S.€manufacturer€of€commercialÐ  È Ðrefrigerators€and€freezers,€receives€an€invitationÐ x  Ðto€bid€from€boycotting€country€Y.€€The€tenderÐ Px Ðstates€that€the€bidder€must€agree€not€to€deal€withÐ (P Ðcompanies€on€Yððs€blacklist.€€A€does€not€knowÐ  ( Ðwhich€companies€are€on€the€blacklist;€however,€AÐ Ø   Ðsubmits€a€bid€without€taking€exception€to€theÐ °!Ø! Ðboycott€conditions.€€Aððs€bid€makes€noÐ ˆ"°" Ðcommitment€regarding€not€dealing€with€certainÐ `#ˆ# Ðcompanies.Ð 8$`$ ÐÌAt€the€point€when€A€submits€its€bid€withoutÐ è% & Ðtaking€exception€to€the€boycott€request€in€YððsÐ À&è ' Ðtender,€A€has€†agreed€to€refuse€to€do€business€withÐ ˜'À!( Ðblacklisted€persons,€because€the€terms€of€YððsÐ p(˜") Ðtender€require€A€to€agree€to€refuse€to€do€business.Ð H)p#* ÐÌà F à(iii)€€A,€a€U.S.€construction€firm,€is€offered€aÐ ø* %, Ðcontract€to€perform€engineering€and€constructionÐ Ð+ø%- Ðservices€in€connection€with€a€project€located€inÐ ¨,Ð&. Ðboycotting€country€Y.€€The€contract€contains€aÐ Ø. Ðclause€stating€that,€in€the€event€of€a€contractÐ °Ø/ Ðdispute,€the€laws€of€Y€will€apply.Ð ˆ°0 ÐÌA€may€enter€into€the€contract.€€Agreement€that€theÐ 8 `2 Ðlaws€of€boycotting€country€Y€will€control€inÐ  83 Ðresolving€a€contract€dispute€is€not€an€agreement€toÐ è 4 Ðrefuse€to€do€business.Ð À è5 ÐÌà ® à(iv)€€Same€as€(iii),€except€that€the€contractÐ p ˜7 Ðcontains€a€clause€that€A€and€its€employees€willÐ Hp8 Ðcomply€with€the€laws€of€boycotting€country€Y.€€AÐ  H 9 Ðknows€that€Y€has€a€number€of€boycott€laws.Ð ø : ÐÌSuch€an€agreement€is€not,€in€and€of€itself,€anÐ ¨Ð < Ðagree‚ment€to€refuse€to€do€business.€€If,€however,Ð €¨ = ÐA€subsequently€refuses€to€do€business€withÐ X€ > Ðsomeone€because€of€the€laws€of€Y,€Aððs€actionÐ 0X? Ðwould€be€a€refusal€to€do€business.Ð 0@ ÐÌà ® à(v)€€Same€as€(iv),€except€that€the€contractÐ ¸àB Ðcontains€a€clause€that€A€and€its€employees€willÐ ¸C Ðcomply€with€the€laws€of€boycotting€country€Y,Ð hD Ðð ðincluding€boycott€laws.ððÐ @hE ÐÌAððs€agreeing,€without€qualification,€to€complyÐ ðG Ðwith€local€boycott€laws€constitutes€an€agreementÐ ÈðH Ðto€refuse€to€do€business.Ð  ÈI ÐÌà ® à(vi)€€Same€as€(v),€except€that€A€inserts€a€provisoÐ PxK Ðð ðexcept€insofar€as€Yððs€laws€conflict€with€U.S.Ð (PL Ðlaws,ðð€or€words€to€that€effect.Ð  (M ÐÌSuch€an€agreement€is€not€an€agreement€to€refuseÐ °!ØO Ðto€do€business.Ð ˆ"°P ÐÌà ® à(vii)€€A,€a€U.S.€general€contractor,€is€retained€toÐ 8$`R Ðconstruct€a€pipeline€in€boycotting€country€Y.€AÐ %8S Ðprovision€in€the€proposed€contract€stipulates€thatÐ è% T Ðin€purchasing€equipment,€supplies,€and€services€AÐ À&è U Ðmust€give€preference€to€companies€located€in€hostÐ ˜'À!V Ðcountry€Y.à Ð àÐ p(˜"W ÐÌA€may€agree€to€this€contract€provision.€€AgreeingÐ  *H$Y Ðto€a€ð ðbuy€localðð€contract€provision€is€not€an€agree†Ð ø* %Z Ðment€to€refuse€to€do€business,€because€AððsÐ Ð+ø%[ Ðagreement€is€not€made€for€boycott€reasons.Ð ¨,Ð&\ Їà F à(viii)€€A,€a€U.S.€exporter€planning€to€sell€retailÐ Ø Ðgoods€to€customers€in€boycotting€country€Y,Ð °Ø Ðenters€into€a€contract€to€purchase€goods€wholesaleÐ ˆ° Ðfrom€B,€a€U.S.€appliance€manufacturer.€€AððsÐ `ˆ Ðcontract€with€B€includes€a€provision€stipulatingÐ 8 ` Ðthat€B€may€not€use€components€or€services€ofÐ  8 Ðblacklisted€companies€in€the€manufacture€of€itsÐ è  Ðappliances.Ð À è ÐÌAððs€contract€constitutes€a€refusal€to€do€business,Ð p ˜  Ðbecause€it€would€require€another€person,€B,€toÐ Hp  Ðrefuse€to€do€business€with€other€persons€forÐ  H  Ðboycott€reasons.€€B€may€not€agree€to€such€aÐ ø  Ðcontract,€because€it€would€be€agreeing€to€refuse€toÐ Ðø  Ðdo€business€with€other€persons€for€boycottÐ ¨Ð  Ðreasons.Ð €¨  ÐÌà F à(ix)€€Same€as€(viii),€except€that€A€and€B€reachÐ 0X Ðan€implicit€understanding€that€B€will€not€useÐ 0 Ðcomponents€or€services€of€blacklisted€companiesÐ à Ðin€the€manufacture€of€goods€to€be€exported€to€Y.€Ð ¸à ÐIn€the€manufacture€of€appliances€to€be€sold€to€AÐ ¸ Ðfor€export€to€non-boycotting€countries,€B€usesÐ h Ðcomponents€manufactured€by€blacklistedÐ @h Ðcompanies.Ð @ ÐÌThe€actions€of€both€A€and€B€constitute€agreementÐ Èð Ðto€refuse€to€do€business.€The€agreement€is€impliedÐ  È Ðby€their€pattern€of€conduct.Ð x  ÐÌà F à(x)€€Boycotting€country€Y€orders€goods€fromÐ (P ÐU.S.€company€B.€€Y€opens€a€letter€of€credit€withÐ  ( Ðforeign€bank€C€in€favor€of€B.€€The€letter€of€creditÐ Ø   Ðspecifies€that€negotiation€of€the€letter€of€creditÐ °!Ø! Ðwith€a€bank€that€appears€on€the€country€X€boycottÐ ˆ"°" Ðblacklist€is€prohibited.€U.S.€bank€A,€CððsÐ `#ˆ# Ðcorrespondent€bank,€advises€B€of€the€letter€ofÐ 8$`$ Ðcredit.€€B€presents€documentation€to€bank€AÐ %8% Ðseeking€to€be€paid€on€the€letter€of€credit,€withoutÐ è% & Ðamending€or€otherwise€taking€exception€to€theÐ À&è ' Ðboycott€condition.Ð ˜'À!( ÐÌB€has€agreed€to€refuse€to€do€business€withÐ H)p#* Ðblacklisted€banks€because,€by€presenting€the€letterÐ  *H$+ Ðof€credit€for€payment,€B€has€accepted€all€of€itsÐ ø* %, Ðterms€and€conditions.Ð Ð+ø%- ÐÐ ¨,Ð&. ÐÓ  ÓÔ‡&Ø{%%%&rfÔ(b)€€Discriminatory€actionsÔ#†%&rf%%&Ø{—°#ÔÐ Ø. ÐÓ‹°ÓÌà@ŠŠ/ àPROHIBITIONS€AGAINST€TAKINGˆÐ †®0 Ðà@gg1 àDISCRIMINATORY€ACTIONSˆÐ ^†1 ÐÌÔ‡r&¡z%%%&rfÔ(1)Ô#†%&rf%%r&¡zœ±#Ô€€No€United€States€person€may:Ð  63 ÐÌà ® à(i)€€Refuse€to€employ€or€otherwise€discriminateÐ  ê5 Ðagainst€any€individual€who€is€a€United€StatesÐ š Â6 Ðperson€on€the€basis€of€race,€religion,€sex,€orÐ r š7 Ðnational€origin;Ð Jr8 ÐÌà ® à(ii)€€Discriminate€against€any€corporation€orÐ ú" : Ðother€organization€which€is€a€United€StatesÐ Òú ; Ðperson€on€the€basis€of€the€race,€religion,€sex,€orÐ ªÒ < Ðnational€origin€of€any€owner,€officer,€director,€orÐ ‚ª = Ðemployee€of€such€corporation€or€organization;Ð Z‚ > ÐÌà ® à(iii)€€Knowingly€agree€to€take€any€of€the€actionsÐ  2@ Ðdescribed€in€paragraph€(b)(1)(i)€and€(ii)€of€thisÐ â A Ðsection;€orÐ ºâB ÐÌà ® à(iv)€€Require€or€knowingly€agree€to€require€anyÐ j’D Ðother€person€to€take€any€of€the€actions€describedÐ BjE Ðin€paragraph€(b)(1)(i)€and€(ii)€of€this€section.Ð BF ÐÌÔ‡s&¡z%%%&rfÔ(2)Ô#†%&rf%%s&¡z¶#Ô€€This€prohibition€shall€apply€whether€theÐ ÊòH Ðdiscriminatory€action€is€taken€by€a€United€StatesÐ ¦ÎI Ðperson€on€its€own€or€in€response€to€an€agreementÐ ~¦J Ðwith,€request€from,€or€requirement€of€a€boycottingÐ V~K Ðcountry.€€This€prohibition,€like€all€others,€appliesÐ .VL Ðonly€with€respect€to€a€United€States€personððsÐ  .M Ðactivities€in€the€interstate€or€foreign€commerce€ofÐ Þ N Ðthe€United€States€and€only€when€such€activitiesÐ ¶!ÞO Ðare€undertaken€with€intent€to€comply€with,Ð Ž"¶P Ðfurther,€or€support€an€unsanctioned€foreignÐ f#ŽQ Ðboycott.Ð >$fR ÐÌÔ‡t&¡z%%%&rfÔ(3)Ô#†%&rf%%t&¡z¹#Ô€€The€section€does€not€supersede€or€limit€theÐ î% T Ðoperation€of€the€civil€rights€laws€of€the€UnitedÐ Ê&ò U ÐStates.Ð ¢'Ê!V Ðà ® àà D àà Ú àà p àÌÓ  Óà@@0 0 ¸ àEXAMPLES€OFÐ R)z#X ÐDISCRIMINATORY€à@@, , ¸ àACTIONSÐ **R$Y ÐÓ+ºÓÌThe€following€examples€are€intended€to€giveÐ Ú+&[ Ðguidance€in€determining€the€circumstances€inÐ ²,Ú&\ Ðwhich€the€taking€of€particular€discriminatoryÐ Ø Ðactions€is€prohibited.€€They€are€illustrative,€notÐ °Ø Ðcomprehensive.Ð ˆ° ÐÌà F à(i)€€U.S.€construction€company€A€is€awarded€aÐ 8 ` Ðcontract€to€build€an€office€complex€in€boycottingÐ  8 Ðcountry€Y.€€A,€believing€that€employees€of€aÐ è  Ðparticular€religion€will€not€be€permitted€to€workÐ À è Ðin€Y€because€of€Yððs€boycott€against€country€X,Ð ˜ À Ðexcludes€U.S.€persons€of€that€religion€fromÐ p ˜  Ðconsideration€for€employment€on€the€project.Ð Hp  ÐÌAððs€refusal€to€consider€qualified€U.S.€persons€ofÐ ø  Ða€particular€religion€for€work€on€the€project€in€YÐ Ðø  Ðconstitutes€a€prohibited€boycott-basedÐ ¨Ð  Ðdiscriminatory€action€against€U.S.€persons€on€theÐ €¨  Ðbasis€of€religion.Ð X€  ÐÌà F à(ii)€€Same€as€(i),€except€that€a€clause€in€theÐ 0 Ðcontract€provides€that€ð ðno€persons€of€country€XÐ à Ðorigin€are€to€work€on€this€project.ððÐ ¸à ÐÌAððs€agreement€constitutes€a€prohibited€boy†††ƒÐ h Ðcott-based€agreement€to€discriminate€against€U.S.Ð @h Ðpersons,€among€others,€on€the€basis€of€nationalÐ @ Ðorigin.Ð ð ÐÌà F à(iii)€€Same€as€(i),€except€that€a€clause€in€theÐ  È Ðcontract€provides€that€ð ðno€persons€who€areÐ x  Ðcitizens,€residents,€or€nationals€of€country€X€areÐ Px Ðto€work€on€this€project.ððÐ (P ÐÌAððs€agreement€does€not€constitute€a€boycott-basedÐ Ø   Ðagreement€to€discriminate€against€U.S.€persons€onÐ °!Ø! Ðthe€basis€of€race,€religion,€sex,€or€national€origin,Ð ˆ"°" Ðbecause€the€clause€requires€exclusion€on€the€basisÐ `#ˆ# Ðof€citizenship,€residency,€and€nationality€only.Ð 8$`$ ÐÌà F à(iv)€€U.S.€construction€company€A€enters€into€aÐ è% & Ðcontract€to€build€a€school€in€boycotting€countryÐ À&è ' ÐY.€€Yððs€representative€orally€tells€A€that€noÐ ˜'À!( Ðpersons€of€country€X€origin€are€to€work€on€theÐ p(˜") Ðproject.Ð H)p#* ÐÌA€may€not€comply,€because€to€do€so€wouldÐ ø* %, Ðconstitute€discrimination€on€the€basis€of€nationalÐ Ð+ø%- Ðorigin.€It€makes€no€difference€that€A€learned€ofÐ ¨,Ð&. ÐYððs€requirement€orally.€€It€makes€no€differenceÐ Ø. Ðhow€A€learns€about€Yððs€discriminatoryÐ °Ø/ Ðrequirement.Ð ˆ°0 ÐÌà ® à(v)€€Boycotting€country€Y€tenders€an€invitationÐ 8 `2 Ðto€bid€on€a€construction€project€in€Y.€€The€tenderÐ  83 Ðrequires€that€the€successful€bidderððs€personnelÐ è 4 Ðwill€be€interviewed€and€that€persons€of€aÐ À è5 Ðparticular€religious€faith€will€not€be€permitted€toÐ ˜ À6 Ðwork€on€the€project.€€Yððs€requirement€is€based€onÐ p ˜7 Ðits€boycott€of€country€X,€the€majority€of€whoseÐ Hp8 Ðcitizens€are€of€that€particular€faith.Ð  H 9 ÐÌAgreement€to€this€provision€in€the€tenderÐ Ðø ; Ðdocument€by€a€U.S.€€person€would€constitute€aÐ ¨Ð < Ðprohibited€agreement€to€engage€in€boycott-basedÐ €¨ = Ðdiscrimination€against€U.S.€persons€of€a€particularÐ X€ > Ðreligion.Ð 0X? ÐÌà ® à(vi)€€Same€as€(v),€except€that€the€tenderÐ àA Ðspecifies€that€ð ðwomen€will€not€be€allowed€toÐ ¸àB Ðwork€on€this€project.ððÐ ¸C ÐÌAgreement€to€this€provision€in€the€tender€by€aÐ @hE ÐU.S.€person€does€not€constitute€a€prohibitedÐ @F Ðagree‚ment€to€engage€in€boycott-basedÐ ðG Ðdiscrimination,€because€the€restriction€againstÐ ÈðH Ðemployment€of€women€is€not€boycott-based.€Ð  ÈI ÐSuch€an€agreement€may,€however,€constitute€aÐ x J Ðviolation€of€U.S.€civil€rights€laws.Ð PxK ÐÌà ® à(vii)€€A€is€a€U.S.€investment€banking€firm.€As€aÐ  (M Ðcondition€of€participating€in€an€underwriting€ofÐ Ø N Ðsecurities€to€be€issued€by€boycotting€country€Y,€AÐ °!ØO Ðis€required€to€exclude€investment€banks€owned€byÐ ˆ"°P Ðpersons€of€a€particular€faith€from€participation€inÐ `#ˆQ Ðthe€underwriting.€€Yððs€requirement€is€based€on€itsÐ 8$`R Ðboycott€of€country€X,€the€majority€of€whoseÐ %8S Ðcitizens€are€of€that€particular€faith.Ð è% T ÐÌAððs€agreement€to€such€a€provision€constitutes€aÐ ˜'À!V Ðprohibited€agreement€to€engage€in€boycott-basedÐ p(˜"W Ðdiscrimination€against€U.S.€persons€on€the€basisÐ H)p#X Ðof€religion.€€Further,€if€A€requires€others€to€agreeÐ  *H$Y Ðto€such€a€condition,€A€would€be€acting€to€requireÐ ø* %Z Ðanother€person€to€engage€in€such€discrimination.Ð Ð+ø%[ ÐÐ ¨,Ð&\ Ðà F à(viii)€U.S.€company€A€is€asked€by€boycottingÐ Ø Ðcountry€Y€to€certify€that€A€will€not€use€a€†Ð °Ø Ðsix-pointed€star€on€the€packaging€of€its€productsÐ ˆ° Ðto€be€imported€into€Y.€€The€requirement€is€part€ofÐ `ˆ Ðthe€enforcement€effort€by€Y€of€its€boycott€againstÐ 8 ` Ðcountry€X.Ð  8 ÐÌA€may€not€so€certify.€€The€six-pointed€star€is€aÐ À è Ðreligious€symbol,€and€the€certification€by€A€that€itÐ ˜ À Ðwill€not€use€such€a€symbol€constitutes€a€statementÐ p ˜  Ðthat€A€will€not€ship€products€made€or€handled€byÐ Hp  Ðpersons€of€that€religion.Ð  H  ÐÌà F à(ix)€€Same€as€(viii),€except€that€A€is€asked€toÐ Ðø  Ðcertify€that€no€symbol€of€boycotted€country€XÐ ¨Ð  Ðwill€appear€on€the€packaging€of€its€productsÐ €¨  Ðimported€into€Y.Ð X€  ÐÌSuch€a€certification€conveys€no€statement€aboutÐ 0 Ðany€personððs€religion€and,€thus,€does€not€comeÐ à Ðwithin€this€prohibition.Ð ¸à ÐÌÔ‡&Ø{%%%&rfÔ(c)€€Furnishing€information€about€race,Ð h Ðreligion,€sex,€or€national€originÔ#†%&rf%%&Ø{Ô#ÔÐ >f ÐÌPROHIBITION€AGAINST€FURNISHINGÐ ì ÐINFORMATION€ABOUT€RACE,€RELIGION,Ð Äì Ðà@¸ àSEX,€OR€NATIONAL€ORIGINˆÐ œÄ ÐÌÔ‡v&¡z%%%&rfÔ(1)Ô#†%&rf%%v&¡zsÕ#Ô€€No€United€States€person€may:Ð Lt ÐÌà F à(i)€€Furnish€information€about€the€race,€religion,Ð  ( Ðsex,€or€national€origin€of€any€United€StatesÐ Ø   Ðperson;Ð °!Ø! ÐÌà F à(ii)€€Furnish€information€about€the€race,Ð `#ˆ# Ðreligion,€sex,€or€national€origin€of€any€owner,Ð 8$`$ Ðofficer,€director,€or€employee€of€any€corporationÐ %8% Ðor€other€organization€which€is€a€United€StatesÐ è% & Ðperson;Ð À&è ' Ðà@¸ ¸ ¸ àˆÌà F à(iii)€€Knowingly€agree€to€furnish€informationÐ p(˜") Ðabout€the€race,€religion,€sex,€or€national€origin€ofÐ H)p#* Ðany€United€States€person;€orÐ  *H$+ ÐÌà F à(iv)€€Knowingly€agree€to€furnish€informationÐ Ð+ø%- Ðabout€the€race,€religion,€sex,€or€national€origin€ofÐ ¨,Ð&. Ðany€owner,€officer,€director,€or€employee€of€anyÐ Ø. Ðcorporation€or€other€organization€which€is€a€†UnitƒÐ °Ø/ Ðed€States€person.Ð ˆ°0 ÐÌÔ‡w&¡z%%%&rfÔ(2)Ô#†%&rf%%w&¡z÷Ù#Ô€€This€prohibition€shall€apply€whether€theÐ 8 `2 Ðinformation€is€specifically€requested€or€is€offeredÐ  <3 Ðvoluntarily€by€the€United€States€person.€€It€shallÐ ì 4 Ðalso€apply€whether€the€information€requested€orÐ Ä ì5 Ðvolunteered€is€stated€in€the€affirmative€or€theÐ œ Ä6 Ðnegative.Ð t œ7 ÐÌÔ‡x&¡z%%%&rfÔ(3)Ô#†%&rf%%x&¡z±Û#Ô€€Information€about€the€place€of€birth€of€or€theÐ $L 9 Ðnationality€of€the€parents€of€a€United€StatesÐ ( : Ðperson€comes€within€this€prohibition,€as€doesÐ Ø ; Ðinformation€in€the€form€of€code€words€or€symbolsÐ °Ø < Ðwhich€could€identify€a€United€States€personððsÐ ˆ° = Ðrace,€religion,€sex,€or€national€origin.Ð `ˆ > ÐÌÔ‡y&¡z%%%&rfÔ(4)Ô#†%&rf%%y&¡z‡Ý#Ô€€This€prohibition,€like€all€others,€applies€onlyÐ 8@ Ðwith€respect€to€a€United€States€personððs€activitiesÐ ìA Ðin€the€interstate€or€foreign€commerce€of€the€†UnitƒÐ ÄìB Ðed€States€and€only€when€such€activities€areÐ œÄC Ðundertaken€with€intent€to€comply€with,€further,€orÐ tœD Ðsupport€an€unsanctioned€foreign€boycott.Ð LtE ÐÌà@00+ àEXAMPLES€OF€THE€PROHIBITION€†AGAINƒˆÐ ü$G ÐST€FURNISHING€DISCRIMINATORYÐ ÔüH Ðà@¡¡7 àINFORMATIONˆÐ ¬ÔI ÐÌThe€following€examples€are€intended€to€giveÐ \„K Ðguidance€in€determining€the€circumstances€inÐ 4\L Ðwhich€the€furnishing€of€discriminatoryÐ  4M Ðinformation€is€prohibited.€€They€are€illustrative,Ð ä N Ðnot€comprehensive.Ð ¼!äO ÐÌà ® à(i)€€U.S.€company€A€receives€a€boycottÐ l#”Q Ðquestionnaire€from€boycotting€country€Y€asking€†Ð D$lR Ðwheth‚er€it€is€owned€or€controlled€by€persons€of€aÐ %DS Ðparticular€faith,€whether€it€has€any€persons€on€itsÐ ô% T Ðboard€of€directors€who€are€of€that€faith,€and€whatÐ Ì&ô U Ðthe€national€origin€of€its€president€is.€€TheÐ ¤'Ì!V Ðinformation€is€sought€for€purposes€of€enforcingÐ |(¤"W ÐYððs€boycott€against€country€X,€and€A€knows€orÐ T)|#X Ðhas€reason€to€know€that€the€information€is€soughtÐ ,*T$Y Ðfor€that€reason.Ð +,%Z ÐÌA€may€not€answer€the€questionnaire,€because€AÐ ´,Ü&\ Ðwould€be€furnishing€information€about€theÐ Ø Ðreligion€and€national€origin€of€U.S.€persons€forÐ °Ø Ðpurposes€of€complying€with€or€supporting€YððsÐ ˆ° Ðboycott€against€X.Ð `ˆ ÐÌà F à(ii)€€U.S.€company€A,€located€in€the€UnitedÐ  8 ÐStates,€is€asked€by€boycotting€country€Y€to€certifyÐ è  Ðthat€A€has€no€persons€of€a€particular€nationalÐ À è Ðorigin€on€its€board€of€directors.€€A€knows€that€YððsÐ ˜ À Ðpurpose€in€asking€for€the€certification€is€toÐ p ˜  Ðenforce€its€boycott€against€country€X.Ð Hp  ÐÌA€may€not€make€such€a€certification,€because€AÐ ø  Ðwould€be€furnishing€information€about€theÐ Ðø  Ðnational€origin€of€U.S.€persons€for€purposes€ofÐ ¨Ð  Ðcomplying€with€or€supporting€Yððs€boycott€againstÐ €¨  ÐX.Ð X€  ÐÌà F à(iii)€€U.S.€company€A€believes€that€boycottingÐ 0 Ðcountry€Y€will€select€Aððs€bid€over€those€of€otherÐ à Ðbidders€if€A€volunteers€that€it€has€noÐ ¸à Ðshareholders,€officers,€or€directors€of€a€particularÐ ¸ Ðnational€origin.€€Aððs€belief€is€based€on€itsÐ h Ðknowledge€that€Y€generally€refuses,€as€part€of€itsÐ @h Ðboycott€against€country€X,€to€do€business€withÐ @ Ðcompanies€owned,€controlled,€or€managed€byÐ ð Ðpersons€of€this€particular€national€origin.Ð Èð ÐÌA€may€not€volunteer€this€information,€because€itÐ x  Ðwould€be€furnishing€information€about€theÐ Px Ðnational€origin€of€U.S.€persons€for€purposes€ofÐ (P Ðcomplying€with€or€supporting€Yððs€boycott€againstÐ  ( ÐX.Ð Ø   ÐÌà F à(iv)€€U.S.€company€A€has€a€contract€to€constructÐ ˆ"°" Ðan€airport€in€boycotting€country€Y.€€Before€AÐ `#ˆ# Ðbegins€work,€A€is€asked€by€Y€to€identify€theÐ 8$`$ Ðnational€origin€of€its€employees€who€will€work€onÐ %8% Ðthe€site.€€A€knows€or€has€reason€to€know€that€Y€isÐ è% & Ðseeking€this€information€in€order€to€enforce€itsÐ À&è ' Ðboycott€against€X.Ð ˜'À!( ÐÌA€may€not€furnish€this€information,€because€AÐ H)p#* Ðwould€be€providing€information€about€theÐ  *H$+ Ðnational€origin€of€U.S.€persons€for€purposes€ofÐ ø* %, Ðcomplying€with€or€supporting€Yððs€boycott€againstÐ Ð+ø%- ÐX.Ð ¨,Ð&. Їà ® à(v)€€Same€as€(iv),€except€that€in€order€toÐ Ø. Ðassemble€its€work€force€on€site€in€Y,€A€sends€visaÐ °Ø/ Ðforms€to€its€employees€and€asks€that€the€forms€beÐ ˆ°0 Ðreturned€to€A€for€transmittal€to€Yððs€consulate€orÐ `ˆ1 Ðembassy.€€A,€itself,€furnishes€no€informationÐ 8 `2 Ðabout€its€employees,€but€merely€transmits€the€visaÐ  83 Ðforms€back€and€forth.Ð è 4 ÐÌIn€performing€the€ministerial€function€ofÐ ˜ À6 Ðtransmitting€visa€forms,€A€is€not€furnishingÐ p ˜7 Ðinformation€about€any€U.S.€personððs€race,Ð Hp8 Ðreligion,€sex,€or€national€origin.Ð  H 9 ÐÌà ® à(vi)€€Same€as€(iv),€except€that€A€is€asked€by€YÐ Ðø ; Ðto€certify€that€none€of€its€employees€in€Y€will€beÐ ¨Ð < Ðwomen,€because€Yððs€laws€prohibit€women€fromÐ €¨ = Ðworking.Ð X€ > ÐÌSuch€a€certification€does€not€constitute€aÐ 0@ Ðprohibited€furnishing€of€information€about€anyÐ àA ÐU.S.€personððs€sex,€since€the€reason€theÐ ¸àB Ðinformation€is€sought€has€nothing€to€do€with€YððsÐ ¸C Ðboycott€of€X.Ð hD ÐÌà ® à(vii)€€U.S.€company€A€is€consideringÐ @F Ðestablishing€an€office€in€boycotting€country€Y.€€InÐ ðG Ðorder€to€register€to€do€business€in€Y,€A€is€asked€toÐ ÈðH Ðfurnish€information€concerning€the€nationalitiesÐ  ÈI Ðof€its€corporate€officers€and€board€of€directors.Ð x J ÐÌA€may€furnish€the€information€about€theÐ (PL Ðnationalities€of€its€officers€and€directors,€becauseÐ  (M Ðin€so€doing€A€would€not€be€furnishingÐ Ø N Ðinformation€about€the€race,€religion,€sex,€orÐ °!ØO Ðnational€origin€of€any€U.S.€person.Ô‡&Ø{%%%&rfÔÐ ˆ"°P ÐÓ  ÓÌ(d)€€òòFurnishing€information€about€businessÐ 6$^R Ðrelationships€with€boycotted€countries€orÐ  %4S Ðblack‚listed€personsóóÔ#†%&rf%%&Ø{Ïõ#ÔÐ â% T ÐÌÓöÓÓ  Óà@@TT+ àPROHIBITION€AGAINST€FURNISHING€Ð '¸!V ÐINFORMATION€ABOUT€BUSINESSÐ h("W Ðà@@. àRELATIONSHIPS€WITH€BOYCOTTEDÐ @)h#X ÐCOUN‚TRIES€OR€BLACKLISTED€PERSONSÐ *@$Y ÐÓðöÓÌÔ‡{&¡z%%%&rfÔ(1)Ô#†%&rf%%{&¡zû÷#Ô€€No€United€States€person€may€furnish€orÐ È+ð%[ Ðknow‚ingly€agree€to€furnish€informationÐ ¤,Ì&\ Ðconcerning€his€or€any€other€personððs€past,€presentÐ Ø Ðor€proposed€business€relationships:Ð °Ø ÐÌà F à(i)€€With€or€in€a€boycotted€country;Ð `ˆ ÐÌà F à(ii)€€With€any€business€concern€organized€underÐ  8 Ðthe€laws€of€a€boycotted€country;Ð è  ÐÌà F à(iii)€€With€any€national€or€resident€of€aÐ ˜ À Ðboycotted€country;€orÐ p ˜  ÐÌà F à(iv)€€With€any€other€person€who€is€known€orÐ  H  Ðbelieved€to€be€restricted€from€having€any€businessÐ ø  Ðrelationship€with€or€in€a€boycotting€country.Ð Ðø  ÐÌÔ‡|&¡z%%%&rfÔ(2)Ô#†%&rf%%|&¡zUû#Ô€€This€prohibition€shall€apply:Ð €¨  ÐÌà F à(i)€€Whether€the€information€pertains€to€aÐ 4\ Ðbusiness€relationship€involving€a€sale,€purchase,Ð  4 Ðor€supply€transaction;€legal€or€commercialÐ ä  Ðrepresentation;€shipping€or€other€transportationÐ ¼ä Ðtransaction;€insurance;€investment;€or€any€otherÐ ”¼ Ðtype€of€business€transaction€or€relationship;€andÐ l” ÐÌà F à(ii)€€Whether€the€information€is€directly€orÐ D Ðindirectly€requested€or€is€furnished€on€theÐ ô Ðinitiative€of€the€United€States€person.Ð Ìô ÐÌÔ‡}&¡z%%%&rfÔ(3)Ô#†%&rf%%}&¡z:þ#Ô€€This€prohibition€does€not€apply€to€theÐ |¤ Ðfurnishing€of€normal€business€information€in€aÐ X€ Ðcommercial€context.€€Normal€businessÐ 0X Ðinformation€may€relate€to€factors€such€as€financialÐ  0 Ðfitness,€technical€competence,€or€professionalÐ à   Ðexperience,€and€may€be€found€in€documentsÐ ¸!à! Ðnormally€available€to€the€public€such€as€annualÐ "¸" Ðreports,€disclosure€statements€concerningÐ h## Ðsecurities,€catalogs,€promotional€brochures,€andÐ @$h$ Ðtrade€and€business€handbooks.€€Such€informationÐ %@% Ðmay€also€appear€in€specifications€or€statements€ofÐ ð% & Ðexperience€and€qualifications.Ð È&ð ' ÐÌÔ‡~&¡z%%%&rfÔ(4)Ô#†%&rf%%~&¡z‰#Ô€€Normal€business€information€furnished€in€aÐ x( ") Ðcommercial€context€does€not€cease€to€be€suchÐ T)|#* Ðsimply€because€the€party€soliciting€theÐ ,*T$+ Ðinformation€may€be€a€boycotting€country€or€aÐ +,%, Ðnational€or€resident€thereof.€€If€the€information€isÐ Ü+&- Ðof€a€type€which€is€generally€sought€for€aÐ ´,Ü&. Ðlegitimate€business€purpose€(such€as€determiningÐ Ø. Ðfinancial€fitness,€technical€competence,€orÐ °Ø/ Ðprofessional€experience),€the€information€may€beÐ ˆ°0 Ðfurnished€even€if€the€information€could€be€used,Ð `ˆ1 Ðor€without€the€knowledge€of€the€person€supplyingÐ 8 `2 Ðthe€information€is€intended€to€be€used,€for€boycottÐ  83 Ðpurposes.€€However,€no€information€aboutÐ è 4 Ðbusiness€relationships€with€blacklisted€persons€orÐ À è5 Ðboycotted€countries,€their€residents€or€nationals,Ð ˜ À6 Ðmay€be€furnished€in€response€to€a€boycott€request,Ð p ˜7 Ðeven€if€the€information€is€publicly€available.Ð Hp8 ÐRequests€for€such€information€from€a€boycottÐ  H 9 Ðoffice€will€be€presumed€to€be€boycott-based.Ð ø : ÐÌÔ‡&¡z%%%&rfÔ(5)Ô#†%&rf%%&¡zÉ#Ô€€This€prohibition,€like€all€others,€applies€onlyÐ ¨Ð < Ðwith€respect€to€a€United€States€personððs€activitiesÐ „¬ = Ðin€the€interstate€or€foreign€commerce€of€the€†††UnitƒÐ \„ > Ðed€States€and€only€when€such€activities€are€underÐ 4\? ÐÌtaken€with€intent€to€comply€with,€further,€orÐ ä A Ðsupport€an€unsanctioned€foreign€boycott.Ð ¼äB ÐÌà@- àEXAMPLES€CONCERNING€FURNISHINGˆÐ l”D Ðà@5 àOF€INFORMATIONˆÐ DlE ÐÌThe€following€examples€are€intended€to€giveÐ ôG Ðguidance€in€determining€the€circumstances€inÐ ÌôH Ðwhich€the€furnishing€of€information€is€prohibited.€Ð ¤ÌI ÐThey€are€illustrative,€not€comprehensive.Ð |¤J ÐÌà ® à(i)€€U.S.€contractor€A€is€considering€bidding€forÐ ,TL Ða€contract€to€build€a€dam€in€boycotting€country€Y.€Ð  ,M ÐThe€invitation€to€bid,€which€appears€in€a€tradeÐ Ü N Ðjournal,€specifies€that€each€bidder€must€state€thatÐ ´!ÜO Ðhe€does€not€have€any€offices€in€boycotted€countryÐ Œ"´P ÐX.€€A€knows€or€has€reason€to€know€that€theÐ d#ŒQ Ðrequirement€is€boycott-based.Ð <$dR ÐÌA€may€not€make€this€statement,€because€itÐ ì% T Ðconstitutes€information€about€Aððs€businessÐ Ä&ì U Ðrelationships€with€X.Ð œ'Ä!V ÐÌà ® à(ii)€€U.S.€contractor€A€is€considering€biddingÐ L)t#X Ðfor€a€contract€to€construct€a€school€in€boycottingÐ $*L$Y Ðcountry€Y.€€Each€bidder€is€required€to€submitÐ ü*$%Z Ðcopies€of€its€annual€report€with€its€bid.€€Since€AððsÐ Ô+ü%[ Ðannual€report€describes€Aððs€worldwideÐ ¬,Ô&\ Ðoperations,€including€the€countries€in€which€itÐ Ø Ðdoes€business,€it€necessarily€discloses€whether€AÐ °Ø Ðhas€business€relations€with€boycotted€country€X.€Ð ˆ° ÐA€has€no€reason€to€know€that€its€report€is€beingÐ `ˆ Ðsought€for€boycott€purposes.Ð 8 ` ÐÌA,€in€furnishing€its€annual€report,€is€supplyingÐ è  Ðordinary€business€information€in€a€commercialÐ À è Ðcontext.Ð ˜ À Ðà@¸ ¸ ¸ àˆà h àÌà F à(iii)€€Same€as€(ii),€except€that€accompanying€theÐ Hp  Ðinvitation€to€bid€is€a€questionnaire€from€countryÐ  H  ÐYððs€boycott€office€asking€each€bidder€to€supply€aÐ ø  Ðcopy€of€its€annual€report.Ð Ðø  ÐÌA€may€not€furnish€the€annual€report€despite€itsÐ €¨  Ðpublic€availability,€because€it€would€be€furnishingÐ X€  Ðinformation€in€response€to€a€questionnaire€from€aÐ 0X Ðboycott€office.Ð 0 ÐÌà F à(iv)€€U.S.€company€A€is€on€boycotting€countryÐ ¸à ÐYððs€blacklist.€€For€reasons€unrelated€to€theÐ ¸ Ðboycott,€A€terminates€its€business€relationshipsÐ h Ðwith€boycotted€country€X.€€In€exploring€otherÐ @h Ðmarketing€areas,€A€determines€that€boycottingÐ @ Ðcountry€Y€offers€great€potential.€€A€is€requested€toÐ ð Ðcomplete€a€questionnaire€from€a€central€boycottÐ Èð Ðoffice€which€inquires€about€Aððs€business€relationsÐ  È Ðwith€X.€Ð x  ÐÌA€may€not€furnish€the€information,€because€it€isÐ (P Ðinformation€about€Aððs€business€relationships€withÐ  ( Ða€boycotted€country.Ð Ø   ÐÌà F à(v)€€U.S.€exporter€A€is€seeking€to€sell€itsÐ ˆ"°" Ðproducts€to€boycotting€country€Y.€€A€is€informedÐ `#ˆ# Ðby€Y€that,€as€a€condition€of€sale,€A€must€certifyÐ 8$`$ Ðthat€it€has€no€salesmen€in€boycotted€country€X.€€AÐ %8% Ðknows€or€has€reason€to€know€that€the€condition€isÐ è% & Ðboycott-based.Ð À&è ' ÐÌA€may€not€furnish€the€certification,€because€it€isÐ p(˜") Ðinformation€about€Aððs€business€relationships€in€aÐ H)p#* Ðboycotted€country.Ð  *H$+ ÐÌà F à(vi)€€U.S.€engineering€company€A€receives€anÐ Ð+ø%- Ðinvitation€to€bid€on€the€construction€of€a€dam€inÐ ¨,Ð&. Ðboycotting€country€Y.€€As€a€condition€of€the€bid,Ð Ø. ÐA€is€asked€to€certify€that€it€does€not€have€anyÐ °Ø/ Ðoffices€in€boycotted€country€X.€€A€is€also€asked€toÐ ˆ°0 Ðfurnish€plans€for€other€dams€it€has€designed.Ð `ˆ1 ÐÌA€may€not€certify€that€it€has€no€office€in€X,Ð  83 Ðbecause€this€is€information€about€its€businessÐ è 4 Ðrelationships€in€a€boycotted€country.€A€mayÐ À è5 Ðsubmit€plans€for€other€dams€it€has€designed,Ð ˜ À6 Ðbecause€this€is€furnishing€normal€businessÐ p ˜7 Ðinformation,€in€a€commercial€context,€relating€toÐ Hp8 ÐAððs€technical€competence€and€professionalÐ  H 9 Ðexperience.Ð ø : ÐÌà ® à(vii)€€U.S.€company€A,€in€seeking€to€expand€itsÐ ¨Ð < Ðexports€to€boycotting€country€Y,€sends€a€salesÐ €¨ = Ðrepresentative€to€Y€for€a€one€week€trip.€€During€aÐ X€ > Ðmeeting€in€Y€with€trade€associationÐ 0X? Ðrepresentatives,€Aððs€representative€desires€toÐ 0@ Ðexplain€that€neither€A€nor€any€companies€withÐ àA Ðwhich€A€deals€has€any€business€relationship€withÐ ¸àB Ðboycotted€country€X.€€The€purpose€of€supplyingÐ ¸C Ðsuch€information€is€to€ensure€that€A€does€not€getÐ hD Ðblacklisted.Ð @hE ÐÌAððs€representative€may€not€volunteer€thisÐ ðG Ðinformation€even€though€A,€for€reasons€unrelatedÐ ÈðH Ðto€the€boycott,€does€not€deal€with€X,€because€AððsÐ  ÈI Ðrepresentative€would€be€volunteering€informationÐ x J Ðabout€Aððs€business€relationships€with€X€forÐ PxK Ðboycott€reasons.Ð (PL ÐÌà ® à(viii)€€U.S.€company€A€is€asked€by€boycottingÐ Ø N Ðcountry€Y€to€furnish€information€concerning€itsÐ °!ØO Ðbusiness€relationships€with€boycotted€country€X.€Ð ˆ"°P ÐA,€knowing€that€Y€is€seeking€the€information€forÐ `#ˆQ Ðboycott€purposes,€refuses€to€furnish€theÐ 8$`R Ðinformation€asked€for€directly,€but€proposes€toÐ %8S Ðrespond€by€supplying€a€copy€of€its€annual€reportÐ è% T Ðwhich€lists€the€countries€with€which€A€isÐ À&è U Ðpresently€doing€business.€€A€does€not€happen€toÐ ˜'À!V Ðbe€doing€business€with€X.Ð p(˜"W ÐÌA€may€not€respond€to€Yððs€request€by€supplying€itsÐ  *H$Y Ðannual€report,€because€A€knows€that€it€would€beÐ ø* %Z Ðresponding€to€a€boycott-based€request€forÐ Ð+ø%[ Ðinformation€about€its€business€relationships€withÐ ¨,Ð&\ ÐX.Ð Ø ÐÌà F à(ix)€€U.S.€company€A€receives€a€letter€from€aÐ ˆ° Ðcentral€boycott€office€asking€A€to€ð ðclarifyðð€AððsÐ `ˆ Ðoperations€in€boycotted€country€X.€€A€intends€toÐ 8 ` Ðcontinue€its€operations€in€X,€but€fears€that€notÐ  8 Ðresponding€to€the€request€will€result€in€its€beingÐ è  Ðplaced€on€boycotting€country€Yððs€blacklist.€€AÐ À è Ðknows€or€has€reason€to€know€that€the€informationÐ ˜ À Ðis€sought€for€boycott€reasons.Ð p ˜  ÐÌA€may€not€respond€to€this€request,€because€theÐ  H  Ðinformation€concerns€its€business€relationshipsÐ ø  Ðwith€a€boycotted€country.Ð Ðø  ÐÌà F à(x)€€U.S.€company€A,€in€the€course€ofÐ €¨  Ðnegotiating€a€sale€of€its€goods€to€a€buyer€inÐ X€  Ðboycotting€country€Y,€is€asked€to€certify€that€itsÐ 0X Ðsupplier€is€not€on€Yððs€blacklist.Ð 0 ÐÌA€may€not€furnish€the€information€about€itsÐ ¸à Ðsupplierððs€blacklist€status,€because€this€isÐ ¸ Ðinformation€about€Aððs€business€relationships€withÐ h Ðanother€person€who€is€believed€to€be€restrictedÐ @h Ðfrom€having€any€business€relationship€with€or€inÐ @ Ða€boycotting€country.Ð ð ÐÌà F à(xi)€€U.S.€company€A€has€a€manufacturing€plantÐ  È Ðin€boycotted€country€X€and€is€on€boycotting€counƒÐ x  Ðtry€Yððs€blacklist.€€A€is€seeking€to€establishÐ Px Ðoperations€in€Y,€while€expanding€its€operations€inÐ (P ÐX.€€A€applies€to€Y€to€be€removed€from€YððsÐ  ( Ðblacklist.€€A€is€asked,€in€response,€to€indicateÐ Ø   Ðwhether€it€has€manufacturing€facilities€in€X.Ð °!Ø! Ðà F àà Ü àà r àà  àà h àÌA€may€not€supply€the€requested€information,Ð `#ˆ# Ðbecause€A€would€be€furnishing€information€aboutÐ 8$`$ Ðits€business€relationships€in€a€boycotted€country.Ð %8% ÐÌà F à(xii)€€U.S.€bank€A€plans€to€open€a€branch€officeÐ À&è ' Ðin€boycotting€country€Y.€€In€order€to€do€so,€A€isÐ ˜'À!( Ðrequired€to€furnish€certain€information€about€itsÐ p(˜") Ðbusiness€operations,€including€the€location€of€itsÐ H)p#* Ðother€branch€offices.€€Such€information€isÐ  *H$+ Ðnormally€sought€in€other€countries€where€A€has€†Ð ø* %, Ðopened€a€branch€office,€and€A€does€not€haveÐ Ð+ø%- Ðreason€to€know€that€Y€is€seeking€the€informationÐ ¨,Ð&. Ðfor€boycott€reasons.Ð Ø. ÐÌA€may€furnish€this€information,€even€though€inÐ ˆ°0 Ðfurnishing€it€A€would€disclose€information€aboutÐ `ˆ1 Ðits€business€relationships€in€a€boycotted€country,Ð 8 `2 Ðbecause€it€is€being€furnished€in€a€normal€businessÐ  83 Ðcontext€and€A€does€not€have€reason€to€know€thatÐ è 4 Ðit€is€sought€for€boycott€reasons.Ð À è5 ÐÌà ® à(xiii)€€U.S.€architectural€firm€A€responds€to€anÐ p ˜7 Ðinvitation€to€submit€designs€for€an€office€complexÐ Hp8 Ðin€boycotting€country€Y.€€The€invitation€statesÐ  H 9 Ðthat€all€bidders€must€include€informationÐ ø : Ðconcerning€similar€types€of€buildings€they€haveÐ Ðø ; Ðdesigned.€€A€has€not€designed€such€buildings€inÐ ¨Ð < Ðboycotted€country€X.€€Clients€frequently€seekÐ €¨ = Ðinformation€of€this€type€before€engaging€anÐ X€ > Ðarchitect.Ð 0X? ÐÌA€may€furnish€this€information,€because€this€isÐ àA Ðfurnishing€normal€business€information,€in€aÐ ¸àB Ðcommercial€context,€relating€to€Aððs€technicalÐ ¸C Ðcompetence€and€professional€experience.Ð hD ÐÌà ® à(xiv)€€U.S.€oil€company€A€distributes€toÐ @F Ðpotential€customers€promotional€brochures€andÐ ðG Ðcatalogs€which€give€background€information€onÐ ÈðH ÐAððs€past€projects.€€A€does€not€have€businessÐ  ÈI Ðdealings€with€boycotted€country€X.€€TheÐ x J Ðbrochures,€which€are€identical€to€those€which€AÐ PxK Ðuses€throughout€the€world,€list€those€countries€inÐ (PL Ðwhich€A€does€or€has€done€business.€€In€solicitingÐ  (M Ðpotential€customers€in€boycotting€country€Y,€AÐ Ø N Ðdesires€to€distribute€copies€of€its€brochures.Ð °!ØO ÐÌA€may€do€so,€because€this€is€furnishing€normalÐ `#ˆQ Ðbusiness€information,€in€a€commercial€context,Ð 8$`R Ðrelating€to€professional€experience.Ð %8S ÐÌà ® à(xv)€€U.S.€company€A€is€interested€in€doingÐ À&è U Ðbusiness€with€boycotting€country€Y.€€A€wants€toÐ ˜'À!V Ðask€Yððs€Ministry€of€Trade€whether,€and€if€so€why,Ð p(˜"W ÐA€is€on€Yððs€blacklist€or€is€otherwise€restricted€forÐ H)p#X Ðboycott€reasons€from€doing€business€with€Y.Ð  *H$Y ÐÌA€may€make€this€limited€inquiry,€because€it€doesÐ Ð+ø%[ Ðnot€constitute€furnishing€information.Ð ¨,Ð&\ Їà F à(xvi)€€U.S.€company€A€is€asked€by€boycottingÐ Ø Ðcountry€Y€to€certify€that€it€is€not€owned€byÐ °Ø Ðsubjects€or€nationals€of€boycotted€country€X€andÐ ˆ° Ðthat€it€is€not€resident€in€boycotted€country€X.Ð `ˆ ÐÌA€may€not€furnish€the€certification,€because€it€isÐ  8 Ðinformation€about€Aððs€business€relationships€withÐ è  Ðor€in€a€boycotted€country,€or€with€nationals€of€aÐ À è Ðboycotted€country.Ð ˜ À ÐÌà F à(xvii)€€U.S.€company€A,€a€manufacturer€ofÐ Hp  Ðcertain€patented€products,€desires€to€register€itsÐ  H  Ðpatents€in€boycotting€country€Y.€€A€receives€aÐ ø  Ðpower€of€attorney€form€required€to€register€itsÐ Ðø  Ðpatents.€€The€form€contains€a€question€regardingÐ ¨Ð  ÐAððs€business€relationships€with€or€in€boycottedÐ €¨  Ðcountry€X.€€A€has€no€business€relationships€withÐ X€  ÐX€and€knows€or€has€reason€to€know€that€theÐ 0X Ðinformation€is€sought€for€boycott€reasons.Ð 0 ÐÌA€may€not€answer€the€question,€because€A€wouldÐ ¸à Ðbe€furnishing€information€about€its€businessÐ ¸ Ðrelationships€with€or€in€a€boycotted€country.Ð h ÐÌà F à(xviii)€U.S.€company€A€is€asked€by€boycottingÐ @ Ðcountry€Y€to€certify€that€it€is€not€the€motherÐ ð Ðcompany,€sister€company,€subsidiary,€or€branchÐ Èð Ðof€any€blacklisted€company,€and€that€it€is€not€inÐ  È Ðany€way€affiliated€with€any€blacklisted€company.Ð x  ÐÌA€may€not€furnish€the€certification,€because€it€isÐ (P Ðinformation€about€whether€A€has€a€businessÐ  ( Ðrelationship€with€another€person€who€is€known€orÐ Ø   Ðbelieved€to€be€restricted€from€having€any€businessÐ °!Ø! Ðrelationship€with€or€in€a€boycotting€country.Ð ˆ"°" ÐÌÓ  ÓÔ‡&Ø{%%%&rfÔ(e)€€òòInformation€concerning€association€withÐ 8$`$ Ðcharitable€and€fraternal€organizationsóóÔ#†%&rf%%&Ø{º?#ÔÐ %6% ÐÓ®?ÓÌà@ ¸ àPROHIBITION€AGAINST€FURNISHINGˆÐ ¼&ä ' Ðà@<< ¸ àINFORMATION€ABOUT€ASSOCIATIONSˆÐ ”'¼!( Ðà@__ ¸ àWITH€CHARITABLE€AND€FRATERNALˆÐ l(”") Ðà@Ðи àORGANIZATIONSˆÐ D)l#* ÐÌÔ‡&¡z%%%&rfÔ(1)Ô#†%&rf%%&¡z–A#Ô€€No€United€States€person€may€furnish€orÐ ô*%, Ðknow‚ingly€agree€to€furnish€information€aboutÐ Ð+ø%- Ðwhether€any€person€is€a€member€of,€has€madeÐ ¨,Ð&. Ðcontributions€to,€or€is€otherwise€associated€withÐ Ø. Ðor€involved€in€the€activities€of€any€charitable€orÐ °Ø/ Ðfraternal€organization€which€supports€a€boycottedÐ ˆ°0 Ðcountry.Ð `ˆ1 ÐÌÔ‡‚&¡z%%%&rfÔ(2)Ô#†%&rf%%‚&¡z‹C#Ô€€This€prohibition€shall€apply€whether:Ð  83 ÐÌà ® à(i)€€The€information€concerns€association€withÐ Ä ì5 Ðor€involvement€in€any€charitable€or€fraternalÐ œ Ä6 Ðorganization€which€(a)€has,€as€one€of€its€statedÐ t œ7 Ðpurposes,€the€support€of€a€boycotted€countryÐ Lt8 Ðthrough€financial€contributions€or€other€means,€orÐ $L 9 Ð(b)€undertakes,€as€a€major€organizational€activity,Ð ü$ : Ðto€offer€financial€or€other€support€to€a€boycottedÐ Ôü ; Ðcountry;Ð ¬Ô < ÐÌà ® à(ii)€€The€information€is€directly€or€indirectlyÐ \„ > Ðrequested€or€is€furnished€on€the€initiative€of€theÐ 4\? ÐUnited€States€person;€orÐ  4@ ÐÌà ® à(iii)€€The€information€requested€or€volunteeredÐ ¼äB Ðconcerns€membership€in,€financial€contributionsÐ ”¼C Ðto,€or€any€other€type€of€association€with€orÐ l”D Ðinvolvement€in€the€activities€of€such€charitable€orÐ DlE Ðfraternal€organization.Ð DF ÐÌÔ‡ƒ&¡z%%%&rfÔ(3)Ô#†%&rf%%ƒ&¡z'H#Ô€€This€prohibition€does€not€prohibit€theÐ ÌôH Ðfurnishing€of€normal€business€information€in€aÐ ¨ÐI Ðcommercial€context€as€defined€in€paragraph€(d)€ofÐ €¨J Ðthis€section.Ð X€K ÐÌÔ‡„&¡z%%%&rfÔ(4)Ô#†%&rf%%„&¡zUI#Ô€€This€prohibition,€like€all€others,€applies€onlyÐ  0M Ðwith€respect€to€a€United€States€personððs€activitiesÐ ä N Ðin€the€interstate€or€foreign€commerce€of€the€†UnitƒÐ ¼!äO Ðed€States€and€only€when€such€activities€areÐ ”"¼P Ðundertaken€with€intent€to€comply€with,€further,€orÐ l#”Q Ðsupport€an€unsanctioned€foreign€boycott.Ð D$lR ÐÌà@««- àÔ  ÔEXAMPLES€OF€PROHIBITION€AGAINSTˆÐ ô% T Ðà@. àFURNISHING€INFORMATION€ABOUTˆÐ Ì&ô U Ðà@——- àASSOCIATIONS€WITH€CHARITABLE€ORˆÐ ¤'Ì!V Ðà@1 àFRATERNAL€ORGANIZATIONSˆÐ |(¤"W ÐÌThe€following€examples€are€intended€to€giveÐ ,*T$Y Ðguidance€in€determining€the€circumstances€inÐ +,%Z Ðwhich€the€furnishing€of€information€concerningÐ Ü+&[ Ðassociations€with€charitable€or€fraternalÐ ´,Ü&\ ÐÑ@"Ñâ @âÑ|xÑâ @âÑ  Ñorganizations€is€prohibited.€€They€are€illustrative,Ð Ü Ðnot€comprehensive.Ð ´Ø ÐÌà F à(i)€€U.S.€engineering€firm€A€receives€anÐ dˆ Ðinvitation€to€bid€from€boycotting€country€Y.€€TheÐ < ` Ðinvitation€includes€a€request€to€supplyÐ  8 Ðinformation€concerning€any€association€whichÐ ì  ÐAððs€officers€have€with€charitable€organization€B,Ð Ä è Ðan€organization€which€is€known€by€A€toÐ œ À Ðcontribute€financial€support€to€boycotted€countryÐ t ˜  ÐX.€€A€knows€or€has€reason€to€know€that€theÐ Lp  Ðinformation€is€sought€for€boycott€reasons.Ð $H  ÐÌA€may€not€furnish€the€information.Ð Ôø  ÐÌà F à(ii)€€U.S.€construction€company€A,€in€an€effortÐ „¨  Ðto€establish€business€dealings€with€boycottingÐ \€  Ðcountry€Y,€proposes€to€furnish€information€to€YÐ 4X Ðshowing€that€no€members€of€its€board€of€directorsÐ  0 Ðare€in€any€way€associated€with€charitableÐ ä Ðorganizations€which€support€boycotted€country€X.€Ð ¼à ÐAððs€purpose€is€to€avoid€any€possibility€of€its€beingÐ ”¸ Ðblacklisted€by€Y.Ð l ÐÌA€may€not€furnish€the€information,€because€AððsÐ @ Ðpurpose€in€doing€so€is€boycott-based.€€It€makes€noÐ ô Ðdifference€that€no€specific€request€for€theÐ Ìð Ðinformation€has€been€made€by€Y.Ð ¤È ÐÌà F à(iii)€€A,€a€citizen€of€the€United€States,€isÐ Tx Ðapplying€for€a€teaching€position€in€a€school€inÐ ,P Ðboycotting€country€Y.€€In€connection€with€hisÐ  ( Ðapplication,€A€furnishes€a€resume€which€happensÐ Ü   Ðto€disclose€his€affiliation€with€charitableÐ ´!Ø! Ðorganizations.€A€does€so€completely€withoutÐ Œ"°" Ðreference€to€Yððs€boycott€and€without€knowledgeÐ d#ˆ# Ðof€any€boycott€requirement€of€Y€that€pertains€toÐ <$`$ ÐAððs€application€for€employment.Ð %8% ÐÌThe€furnishing€of€a€resume€by€A€is€not€aÐ Ä&è ' Ðboycott-related€furnishing€of€information€aboutÐ œ'À!( Ðhis€association€with€charitable€organizationsÐ t(˜") Ðwhich€support€boycotted€country€X.Ð L)p#* ÐÌÓ  ÓÔ‡&Ø{%%%&rfÔ(f)€€òòLetters€of€creditóóÔ#†%&rf%%&Ø{W#ÔÐ ü* %, ÐÓWÓÌà@üü ¸ àPROHIBITION€AGAINST€IMPLEMENTINGˆÐ ª,Î&. Ðà@VV. àLETTERS€OF€CREDIT€CONTAININGˆÐ Ü. Ðà@((0 àPROHIBITED€CONDITIONS€ORˆÐ ´Ø/ Ðà@]]6 àREQUIREMENTSˆÐ Œ°0 ÐÌÔ‡†&¡z%%%&rfÔ(1)Ô#†%&rf%%†&¡z—X#Ô€€No€United€States€person€may€pay,€honor,Ð < `2 Ðconfirm,€or€otherwise€implement€a€letter€of€creditÐ  <3 Ðwhich€contains€a€condition€or€requirementÐ ð 4 Ðcompliance€with€which€is€prohibited€by€this€part,Ð È ì5 Ðnor€shall€any€United€States€person,€as€a€result€ofÐ   Ä6 Ðthe€application€of€this€section,€be€obligated€toÐ x œ7 Ðpay,€honor€or€otherwise€implement€such€a€letterÐ Pt8 Ðof€credit.€Ð (L 9 ÐÌÔ‡‡&¡z%%%&rfÔ(2)Ô#†%&rf%%‡&¡zÖZ#Ô€€For€purposes€of€this€section,€ð ðimplementingððÐ Øü ; Ða€letter€of€credit€includes:Ð ´Ø < ÐÌà ® à(i)€€Issuing€or€opening€a€letter€of€credit€at€theÐ dˆ > Ðrequest€of€a€customer;Ð <`? ÐÌà ® à(ii)€€Honoring,€by€accepting€as€being€a€validÐ ìA Ðinstrument€of€credit,€any€letter€of€credit;Ð ÄèB ÐÌà ® à(iii)€€Paying,€under€a€letter€of€credit,€a€draft€orÐ t˜D Ðother€demand€for€payment€by€the€beneficiary;Ð LpE ÐÌà ® à(iv)€€Confirming€a€letter€of€credit€by€agreeing€toÐ ü G Ðbe€responsible€for€payment€to€the€beneficiary€inÐ ÔøH Ðresponse€to€a€request€by€the€issuer;Ð ¬ÐI ÐÌà ® à(v)€€Negotiating€a€letter€of€credit€by€voluntarilyÐ \€K Ðpurchasing€a€draft€from€a€beneficiary€andÐ 4XL Ðpresenting€such€draft€for€reimbursement€to€theÐ  0M Ðissuer€or€the€confirmer€of€the€letter€of€credit;€andÐ ä N ÐÌà ® à(vi)€€Taking€any€other€action€to€implement€aÐ ”"¸P Ðletter€of€credit.Ð l#Q ÐÌÔ‡ˆ&¡z%%%&rfÔ(3)Ô#†%&rf%%ˆ&¡z_#Ô€€In€the€standard€international€letter€of€creditÐ %@S Ðtransaction€facilitating€payment€for€the€export€ofÐ ø% T Ðgoods€from€the€United€States,€a€bank€in€a€foreignÐ Ð&ô U Ðcountry€may€be€requested€by€its€customer€to€issueÐ ¨'Ì!V Ða€revocable€or€irrevocable€letter€of€credit€in€favorÐ €(¤"W Ðof€the€United€States€exporter.€€The€customerÐ X)|#X Ðusually€requires,€and€the€letter€of€credit€provides,Ð 0*T$Y Ðthat€the€issuing€(or€a€confirming)€bank€will€makeÐ +,%Z Ðpayment€to€the€beneficiary€against€the€bankððsÐ à+&[ Ðreceipt€of€the€documentation€specified€in€theÐ ¸,Ü&\ Ðletter€of€credit.€€Such€documentation€usuallyÐ Ü Ðincludes€commercial€and€consular€invoices,€a€billÐ ´Ø Ðof€lading,€and€evidence€of€insurance,€but€it€mayÐ Œ° Ðalso€include€other€required€certifications€orÐ dˆ Ðdocumentary€assurances€such€as€the€origin€of€theÐ < ` Ðgoods€and€information€relating€to€the€carrier€orÐ  8 Ðinsurer€of€the€shipment.€Ð ì  ÐÌBanks€usually€will€not€accept€drafts€for€paymentÐ œ À Ðunless€the€documents€submitted€therewith€complyÐ t ˜  Ðwith€the€terms€and€conditions€of€the€letter€ofÐ Lp  Ðcredit.Ð $H  ÐÌÔ‡‰&¡z%%%&rfÔ(4)Ô#†%&rf%%‰&¡zMe#Ô€€A€United€States€person€is€not€prohibitedÐ Ôø  Ðunder€this€section€from€advising€a€beneficiary€ofÐ °Ô  Ðthe€existence€of€a€letter€of€credit€in€his€favor,€orÐ ˆ¬  Ðfrom€taking€ministerial€actions€to€dispose€of€aÐ `„  Ðletter€of€credit€which€it€is€prohibited€fromÐ 8\ Ðimplementing.Ð 4 ÐÌÔ‡Š&¡z%%%&rfÔ(5)Ô#†%&rf%%Š&¡zg#Ô€€Compliance€with€this€section€shall€provide€anÐ Àä Ðabsolute€defense€in€any€action€brought€to€compelÐ œÀ Ðpayment€of,€honoring€of,€or€other€implementationÐ t˜ Ðof€a€letter€of€credit,€or€for€damages€resulting€fromÐ Lp Ðfailure€to€pay€or€otherwise€honor€or€implementÐ $H Ðthe€letter€of€credit.€€This€section€shall€notÐ ü  Ðotherwise€relieve€any€person€from€any€obligationsÐ Ôø Ðor€other€liabilities€he€may€incur€under€other€lawsÐ ¬Ð Ðore€regulations,€except€as€may€be€explicitlyÐ „¨ Ðprovided€in€this€section.Ð \€ ÐÌÔ  ÔÓ  ÓLETTERS€OF€CREDIT€TO€WHICH€Ð  0 ÐTHIS€à@@5 àSEC‚TION€APPLIESÐ ä   ÐÓñiÓÌÔ‡‹&¡z%%%&rfÔ(6)Ô#†%&rf%%‹&¡zzj#Ô€€This€prohibition,€like€all€others,€applies€onlyÐ ”"¸" Ðwith€respect€to€a€United€States€personððs€activitiesÐ p#”# Ðtaken€with€intent€to€comply€with,€further,€orÐ H$l$ Ðsupport€an€unsanctioned€foreign€boycott.€€InÐ  %D% Ðaddition,€it€applies€only€when€the€transaction€toÐ ø% & Ðwhich€the€letter€of€credit€applies€is€in€UnitedÐ Ð&ô ' ÐStates€commerce€and€the€beneficiary€is€a€UnitedÐ ¨'Ì!( ÐStates€person.Ð €(¤") ÐÌà@ÌÌ ¸ àIMPLEMENTATION€OF€LETTERS€OFˆÐ 0*T$+ Ðà@ZZ ¸ àCREDIT€IN€THE€UNITED€STATESˆÐ +,%, ÐÌÔ‡Œ&¡z%%%&rfÔ(7)Ô#†%&rf%%Œ&¡zNm#Ô€€A€letter€of€credit€implemented€in€the€UnitedÐ ¸,Ü&. ÐStates€by€a€United€States€person€located€in€theÐ Ü. ÐUnited€States,€including€a€permanent€UnitedÐ ´Ø/ ÐStates€establishment€of€a€foreign€bank,€will€beÐ Œ°0 Ðpresumed€to€apply€to€a€transaction€in€UnitedÐ dˆ1 ÐStates€commerce€and€to€be€in€favor€of€a€UnitedÐ < `2 ÐStates€beneficiary€where€the€letter€of€creditÐ  83 Ðspecifies€a€United€States€address€for€theÐ ì 4 Ðbeneficiary.€€€These€presumptions€may€beÐ Ä è5 Ðrebutted€by€facts€which€could€reasonably€lead€theÐ œ À6 Ðbank€to€conclude€that€the€beneficiary€is€not€aÐ t ˜7 ÐUnited€States€person€or€that€the€underlyingÐ Lp8 Ðtransaction€is€not€in€United€States€commerce.Ð $H 9 ÐÌÔ‡&¡z%%%&rfÔ(8)Ô#†%&rf%%&¡zíp#Ô€€Where€a€letter€of€credit€implemented€in€theÐ Ôø ; ÐUnited€States€by€a€United€States€person€located€inÐ °Ô < Ðthe€United€States€does€not€specify€a€United€StatesÐ ˆ¬ = Ðaddress€for€the€beneficiary,€the€beneficiary€will€beÐ `„ > Ðpresumed€to€be€other€than€a€United€States€person.€Ð 8\? ÐThis€presumption€may€be€rebutted€by€facts€whichÐ 4@ Ðcould€reasonably€lead€the€bank€to€conclude€thatÐ è A Ðthe€beneficiary€is€a€United€States€person€despiteÐ ÀäB Ðthe€foreign€address.Ð ˜¼C Ðà@  < àˆÌà ® àà D àà@44. àIMPLEMENTATION€OF€LETTERS€OFˆÐ HlE ÐCREDIT€OUTSIDE€THE€UNITED€STATESÐ  DF ÐÌÔ‡Ž&¡z%%%&rfÔ(9)Ô#†%&rf%%Ž&¡z0t#Ô€€A€letter€of€credit€implemented€outside€theÐ ÐôH ÐUnited€States€by€a€United€States€person€locatedÐ ¬ÐI Ðoutside€the€United€States€will€be€presumed€toÐ „¨J Ðapply€to€a€transaction€in€United€States€commerceÐ \€K Ðand€to€be€in€favor€of€a€United€States€beneficiaryÐ 4XL Ðwhere€the€letter€of€credit€specifies€a€United€StatesÐ  0M Ðaddress€for€the€beneficiary€and€calls€forÐ ä N Ðdocuments€indicating€shipment€from€the€UnitedÐ ¼!àO ÐStates€or€otherwise€indicating€that€the€goods€areÐ ”"¸P Ðof€†United€States€origin.€€These€presumptions€mayÐ l#Q Ðbe€rebutted€by€facts€which€could€reasonably€leadÐ D$hR Ðthe€bank€to€conclude€that€the€beneficiary€is€not€aÐ %@S ÐUnited€States€person€or€that€the€underlyingÐ ô% T Ðtransaction€is€not€in€United€States€commerce.Ð Ì&ð U ÐÌÔ‡&¡z%%%&rfÔ(10Ô#†%&rf%%&¡z,x#Ô)€€Where€a€letter€of€credit€implemented€outsideÐ |( "W Ðthe€United€States€by€a€United€States€personÐ X)|#X Ðlocated€outside€the€United€States€does€not€specifyÐ 0*T$Y Ða€United€States€address€for€the€beneficiary,€theÐ +,%Z Ðbeneficiary€will€be€presumed€to€be€other€than€aÐ à+&[ ÐUnited€States€person.€€In€addition,€where€such€aÐ ¸,Ü&\ Ðletter€of€credit€does€not€call€for€documentsÐ Ü Ðindicating€shipment€from€the€United€States€orÐ ´Ø Ðotherwise€indicating€that€the€goods€are€of€UnitedÐ Œ° ІStates€origin,€the€transaction€to€which€it€appliesÐ dˆ Ðwill€be€presumed€to€be€outside€United€StatesÐ < ` Ðcommerce.€€The€presumption€that€the€beneficiaryÐ  8 Ðis€other€than€a€United€States€person€may€beÐ ì  Ðrebutted€by€facts€which€could€reasonably€lead€theÐ Ä è Ðbank€to€conclude€that€the€beneficiary€is€a€UnitedÐ œ À ÐStates€person.€€The€presumption€that€theÐ t ˜  Ðtransaction€to€which€the€letter€of€credit€applies€isÐ Lp  Ðoutside€United€States€commerce€may€be€rebuttedÐ $H  Ðby€facts€which€could€reasonably€lead€the€bank€toÐ ü  Ðconclude€that€the€underlying€transaction€is€inÐ Ôø  ÐUnited€States€commerce.Ð ¬Ð  ÐÌÓ  Óà@@   ¸ àEXAMPLES€OF€THE€PROHIBITION€†Ð \€  ÐAGAINST€IMPLEMENTING€Ð 4X ÐLETTERS€OF€CREDITÐ  0 ÐÓì}ÓÌThe€following€examples€are€intended€to€giveÐ ¼à Ðguidance€in€determining€the€circumstances€inÐ ”¸ Ðwhich€this€section€applies€to€the€implementationÐ l Ðof€a€letter€of€credit€and€in€which€suchÐ Dh Ðimplementation€is€prohibited.€€They€areÐ @ Ðillustrative,€not€comprehensive.Ð ô Ðà@¸ ¸ ¸ àˆÌà@ÌÌ ¸ àIMPLEMENTATION€OF€LETTERS€OFˆÐ ¤È ÐCREDIT€IN€UNITED€STATES€COMMERCEÐ |  ÐÌ€à F à(i)€€A,€a€U.S.€bank€located€in€the€United€States,Ð ,P Ðopens€a€letter€of€credit€in€the€United€States€inÐ  ( Ðfavor€of€B,€a€foreign€company€located€outside€theÐ Ü   ÐUnited€States.€€The€letter€of€credit€specifies€aÐ ´!Ø! Ðnon-U.S.€address€for€the€beneficiary.Ð Œ"°" ÐÌThe€beneficiary€is€presumed€to€be€other€than€aÐ <$`$ ÐU.S.€person,€because€it€does€not€have€a€U.S.Ð %8% Ðaddress.€€The€presumption€may€be€rebutted€byÐ ì% & Ðfacts€showing€that€A€could€reasonably€concludeÐ Ä&è ' Ðthat€the€beneficiary€is€a€U.S.€person€despite€theÐ œ'À!( Ðforeign€address.Ð t(˜") ÐÌà F à(ii)€€A,€a€branch€of€a€foreign€bank€located€in€theÐ $*H$+ ÐUnited€States,€opens€a€letter€of€credit€in€favor€ofÐ ü* %, ÐB,€a€foreign€company€located€outside€the€UnitedÐ Ô+ø%- ÐStates.€€The€letter€of€credit€specifies€a€non-U.S.Ð ¬,Ð&. Ðaddress€for€the€beneficiary.€Ð Ü. ÐÌThe€beneficiary€is€presumed€to€be€other€than€aÐ Œ°0 ÐU.S.€person,€because€it€does€not€have€a€U.S.Ð dˆ1 Ðaddress.€€The€presumption€may€be€rebutted€byÐ < `2 Ðfacts€showing€that€A€could€reasonably€concludeÐ  83 Ðthat€the€beneficiary€is€a€U.S.€person€despite€theÐ ì 4 Ðforeign€address.Ð Ä è5 ÐÌà ® à(iii)€€A,€a€U.S.€bank€branch€located€outside€theÐ t ˜7 ÐUnited€States,€opens€a€letter€of€credit€in€favor€ofÐ Lp8 ÐB,€a€person€with€a€U.S.€address.€€The€letter€ofÐ $H 9 Ðcredit€calls€for€documents€indicating€shipment€ofÐ ü : Ðgoods€from€the€United€States.Ð Ôø ; ÐÌThe€letter€of€credit€is€presumed€to€apply€to€aÐ „¨ = Ðtransaction€in€U.S.€commerce€and€to€be€in€favorÐ \€ > Ðof€a€U.S.€beneficiary€because€the€letter€of€creditÐ 4X? Ðspecifies€a€U.S.€address€for€the€beneficiary€andÐ  0@ Ðcalls€for€documents€indicating€that€the€goods€willÐ äA Ðbe€shipped€from€the€United€States.€€TheseÐ ¼àB Ðpresumptions€may€be€rebutted€by€facts€showingÐ ”¸C Ðthat€A€could€reasonably€conclude€that€theÐ lD Ðbeneficiary€is€not€a€U.S.€person€or€that€theÐ DhE Ðunderlying€transaction€is€not€in€U.S.€commerce.Ð @F Ðà ® àà D àà Ú àà p àà Ð àÌà ® à(iv)€€A,€a€U.S.€bank€branch€located€outside€theÐ ÌðH ÐUnited€States,€opens€a€letter€of€credit€whichÐ ¤ÈI Ðspecifies€a€beneficiary,€B,€with€an€address€outsideÐ | J Ðthe€United€States€and€calls€for€documentsÐ TxK Ðindicating€that€the€goods€are€of€U.S.-origin.€€AÐ ,PL Ðknows€or€has€reason€to€know€that€although€B€hasÐ  (M Ðan€address€outside€the€United€States,€B€is€a€U.S.Ð Ü N Ðperson.Ð ´!ØO ÐÌThe€letter€of€credit€is€presumed€to€apply€to€aÐ d#ˆQ Ðtransaction€in€U.S.€€commerce,€because€the€letterÐ <$`R Ðof€credit€calls€for€shipment€of€U.S.-origin€goods.€Ð %8S ÐIn€addition,€the€letter€of€credit€is€presumed€to€beÐ ì% T Ðin€favor€of€a€beneficiary€who€is€a€U.S.€person,Ð Ä&è U Ðbecause€A€knows€or€has€reason€to€know€that€theÐ œ'À!V Ðbeneficiary€is€a€U.S.€person€despite€the€foreignÐ t(˜"W Ðaddress.Ð L)p#X ÐÌà ® à(v)€€A,€a€U.S.€bank€branch€located€outside€theÐ ü* %Z ÐUnited€States,€opens€a€letter€of€credit€whichÐ Ô+ø%[ Ðspecifies€a€beneficiary€with€a€U.S.€address.€€TheÐ ¬,Ð&\ Ðletter€of€credit€calls€for€documents€indicatingÐ Ü Ðshipment€of€foreign-origin€goods.Ð ´Ø ÐÌThe€letter€of€credit€is€presumed€to€be€in€favor€of€aÐ dˆ ÐU.S.€beneficiary€but€to€apply€to€a€transactionÐ < ` Ðoutside€U.S.€commerce,€because€it€calls€forÐ  8 Ðdocuments€indicating€shipment€of€foreign-originÐ ì  Ðgoods.€€The€presumption€of€non-U.S.€commerceÐ Ä è Ðmay€be€rebutted€by€facts€showing€that€A€couldÐ œ À Ðreasonably€conclude€that€the€underlyingÐ t ˜  Ðtransaction€involves€shipment€of€U.S.-originÐ Lp  Ðgoods€or€goods€from€the€United€States.à h àÐ $H  Ðà F àà Ü àÌà@üü ¸ àPROHIBITION€AGAINST€IMPLEMENTINGˆÐ Ôø  Ðà@AA¸ àLETTERS€OF€CREDITˆÐ ¬Ð  ÐÌà F à(i)€€Boycotting€country€Y€orders€goods€fromÐ \€  ÐU.S.€company€B.€€Y€opens€a€letter€of€credit€withÐ 4X Ðforeign€bank€C€in€favor€of€B.€€The€letter€of€creditÐ  0 Ðspecifies€as€a€condition€of€payment€that€B€certifyÐ ä Ðthat€it€does€not€do€business€with€boycottedÐ ¼à Ðcountry€X.€€Foreign€bank€C€forwards€the€letter€ofÐ ”¸ Ðcred‚it€it€has€opened€to€U.S.€bank€A€forÐ l Ðconfirmation.Ð Dh Ðà@¸ ¸ ¸ àˆÌA€may€not€confirm€or€otherwise€implement€thisÐ ô Ðletter€of€credit,€because€it€contains€a€conditionÐ Ìð Ðwith€which€a€U.S.€person€may€not€comply.Ð ¤È ÐÌà F à(ii)€€Same€as€(i),€except€U.S.€bank€A€desires€toÐ Tx Ðadvise€the€beneficiary,€U.S.€company€B,€of€theÐ ,P Ðletter€of€credit.Ð  ( ÐÌA€may€do€so,€because€advising€the€beneficiary€ofÐ ´!Ø! Ðthe€letter€of€credit€(including€the€term€whichÐ Œ"°" Ðprevents€A€from€implementing€it)€is€notÐ d#ˆ# Ðimplementation€of€the€letter€of€credit.Ð <$`$ ÐÌà F à(iii)€€Same€as€(i),€except€foreign€bank€C€sends€aÐ ì% & Ðtelegram€to€U.S.€bank€A€stating€the€major€termsÐ Ä&è ' Ðand€conditions€of€the€letter€of€credit.€€TheÐ œ'À!( Ðtelegram€does€not€reflect€the€boycott€provision.Ð t(˜") ÐSubsequently,€C€mails€to€A€documents€settingÐ L)p#* Ðforth€the€terms€and€conditions€of€the€letter€ofÐ $*H$+ Ðcredit,€including€the€prohibited€boycott€condition.Ð ü* %, ÐÌA€may€not€further€implement€the€letter€of€creditÐ ¬,Ð&. Ðafter€it€receives€the€documents,€because€theyÐ Ü. Ðreflect€the€prohibited€boycott€condition€in€theÐ ´Ø/ Ðletter€of€credit.€€A€may€advise€the€beneficiary€andÐ Œ°0 ÐC€of€the€existence€of€the€letter€of€credit€(includingÐ dˆ1 Ðthe€boycott€term),€and€may€perform€anyÐ < `2 Ðessentially€ministerial€acts€necessary€to€dispose€ofÐ  83 Ðthe€letter€of€credit.Ð ì 4 ÐÌà ® à(iv)€€Same€as€(iii),€except€that€U.S.€company€B,Ð œ À6 Ðbased€in€part€on€information€received€from€U.S.Ð t ˜7 Ðbank€A,€desires€to€obtain€an€amendment€to€theÐ Lp8 Ðletter€of€credit€which€would€eliminate€or€nullifyÐ $H 9 Ðthe€language€in€the€letter€of€credit€which€preventsÐ ü : ÐA€from€paying€or€otherwise€implementing€it.Ð Ôø ; ÐÌEither€company€B€or€bank€A€may€undertake,€andÐ „¨ = Ðthe€other€may€cooperate€and€assist€in,€thisÐ \€ > Ðendeavor.€€A€could€then€pay€or€otherwiseÐ 4X? Ðimplement€the€revised€letter€of€credit,€so€long€asÐ  0@ Ðthe€original€prohibited€boycott€condition€is€of€noÐ äA Ðforce€or€effect.Ð ¼àB ÐÌà ® à(v)€€Boycotting€country€Y€requests€a€foreignÐ lD Ðbank€in€Y€to€open€a€letter€of€credit€to€effectÐ DhE Ðpayment€for€goods€to€be€shipped€by€U.S.€supplierÐ @F ÐB,€the€beneficiary€of€the€letter€of€credit.€€TheÐ ôG Ðletter€of€credit€contains€prohibited€boycottÐ ÌðH Ðclauses.€€The€foreign€bank€forwards€a€copy€of€theÐ ¤ÈI Ðletter€of€credit€to€its€branch€office€A,€in€theÐ | J ÐUnited€States.Ð TxK ÐÌA€may€advise€the€beneficiary€but€may€notÐ  (M Ðimplement€the€letter€of€credit,€because€it€containsÐ Ü N Ðprohibited€boycott€conditions.Ð ´!ØO ÐÌ€à ® à(vi)€Boycotting€country€Y€orders€goods€fromÐ d#ˆQ ÐU.S.€company€B.€€U.S.€bank€A€is€asked€toÐ <$`R Ðimplement,€for€the€benefit€of€B,€a€letter€of€creditÐ %8S Ðwhich€contains€a€clause€requiring€documentationÐ ì% T Ðthat€the€goods€shipped€are€not€of€boycottedÐ Ä&è U Ðcountry€X€origin.Ð œ'À!V ÐÌA€may€not€implement€the€letter€of€credit€with€aÐ L)p#X Ðprohibited€condition,€and€may€accept€only€aÐ $*H$Y Ðpositive€certificate€of€origin€as€satisfactoryÐ ü* %Z Ðdocumentation.€€(See€ðð760.3(c)€on€ð ðImport€andÐ Ô+ø%[ ÐShipping€Document€Requirements.ðð)Ð ¬,Ð&\ Їà F à(vii)€[Reserved]Ð Ü Ðà F àà Ü àà r àà  àÌà F à(viii)€€B€is€a€foreign€bank€located€outside€theÐ Œ° ÐUnited€States.€B€maintains€an€account€with€U.S.Ð dˆ Ðbank€A,€located€in€the€United€States.€€A€letter€ofÐ < ` Ðcredit€issued€by€B€in€favor€of€a€U.S.€beneficiaryÐ  8 Ðprovides€that€any€negotiating€bank€may€obtainÐ ì  Ðreimbursement€from€A€by€certifying€that€all€theÐ Ä è Ðterms€and€conditions€of€the€letter€of€credit€haveÐ œ À Ðbeen€met€and€then€drawing€against€Bððs€account.€Ð t ˜  ÐB€notifies€A€by€cable€of€the€issuance€of€a€letter€ofÐ Lp  Ðcredit€and€the€existence€of€reimbursementÐ $H  Ðauthorization;€A€does€not€receive€a€copy€of€theÐ ü  Ðletter€of€credit.Ð Ôø  ÐÌA€may€reimburse€any€negotiating€bank,€evenÐ „¨  Ðwhen€the€underlying€letter€of€credit€contains€aÐ \€  Ðprohibited€boycott€condition,€because€A€does€notÐ 4X Ðknow€or€have€reason€to€know€that€the€letter€ofÐ  0 Ðcredit€contains€a€prohibited€boycott€condition.Ð ä ÐÌà F à(ix)€€Same€as€(viii),€except€that€foreign€bank€BÐ ”¸ Ðforwards€a€copy€of€the€letter€of€credit€to€U.S.Ð l Ðbank€A,€which€then€becomes€aware€of€theÐ Dh Ðprohibited€boycott€clause.Ð @ ÐÌA€may€not€thereafter€reimburse€a€negotiatingÐ Ìð Ðbank€or€in€any€way€further€implement€the€letter€ofÐ ¤È Ðcredit,€because€it€knows€of€the€prohibited€boycottÐ |  Ðcondition.Ð Tx ÐÌà F à(x)€€€Boycotting€country€Y€orders€goods€fromÐ  ( ÐU.S.€exporter€B€and€requests€a€foreign€bank€in€YÐ Ü   Ðto€open€a€letter€of€credit€in€favor€of€B€to€cover€theÐ ´!Ø! Ðcost.€€The€letter€of€credit€contains€a€prohibitedÐ Œ"°" Ðboycott€clause.€€The€foreign€bank€asks€U.S.€bankÐ d#ˆ# ÐA€to€advise€and€confirm€the€letter€of€credit.€Ð <$`$ ÐThrough€inadvertence,€A€does€not€notice€theÐ %8% Ðprohibited€clause€and€confirms€the€letter€of€credit.€Ð ì% & ÐA€thereafter€notices€the€clause€and€then€refuses€toÐ Ä&è ' Ðhonor€Bððs€draft€against€the€letter€of€credit.€B€suesÐ œ'À!( Ðbank€A€for€payment.Ð t(˜") ÐÌA€has€an€absolute€defense€against€the€obligationÐ $*H$+ Ðto€make€payment€under€this€letter€of€credit.€Ð ü* %, Ð(Note:€Examples€(ix)€and€(x)€do€not€alter€anyÐ Ô+ø%- Ðother€obligations€or€liabilities€of€the€parties€underÐ ¬,Ð&. Ðappropriate€law.)Ð Ü. ÐÌà ® à(xi)€€[Reserved]Ð Œ°0 ÐÌà ® à(xii)€€Boycotting€country€Y€orders€goods€fromÐ < `2 ÐU.S.€company€B.€A€letter€of€credit€which€containsÐ  83 Ða€prohibited€boycott€clause€is€opened€in€favor€ofÐ ì 4 ЀB€by€a€foreign€bank€in€Y.€€The€foreign€bank€asksÐ Ä è5 ÐU.S.€bank€A€to€advise€and€confirm€the€letter€ofÐ œ À6 Ðcredit,€which€it€forwards€to€A.Ð t ˜7 ÐÌA€may€advise€B€that€it€has€received€the€letter€ofÐ $H 9 Ðcredit€(including€the€boycott€term),€but€may€notÐ ü : Ðconfirm€the€letter€of€credit€with€the€prohibitedÐ Ôø ; Ðclause.Ð ¬Ð < ÐÌ€€€€(xiii)€€Same€as€(xii),€except€U.S.€bank€A€fails€toÐ \€ > Ðtell€B€that€it€cannot€process€the€letter€of€credit.€€BÐ 4X? Ðrequests€payment.Ð  0@ ÐÌA€may€not€pay.€€If€the€prohibited€language€isÐ ¼àB Ðeliminated€or€nullified€as€the€result€ofÐ ”¸C Ðrenegotiation,€A€may€then€pay€or€otherwiseÐ lD Ðimplement€the€revised€letter€of€credit.Ð DhE ÐÌà ® à(xiv)€€U.S.€bank€A€receives€a€letter€of€credit€inÐ ôG Ðfavor€of€U.S.€beneficiary€B.€€The€letter€of€creditÐ ÌðH Ðrequires€B€to€certify€that€he€is€not€blacklisted.Ð ¤ÈI ÐÌA€may€implement€such€a€letter€of€credit,€but€itÐ TxK Ðmay€not€insist€that€the€certification€be€furnished,Ð ,PL Ðbecause€by€so€insisting€it€would€be€refusing€to€doÐ  (M Ðbusiness€with€a€blacklisted€person€in€complianceÐ Ü N Ðwith€a€boycott.Ð ´!ØO ÐÌà ® à(xv)€€A,€a€U.S.€bank€located€in€the€U.S.€opens€aÐ d#ˆQ Ðletter€of€credit€in€favor€of€U.S.€beneficiary€B€forÐ <$`R ÐBððs€sale€of€goods€to€boycotting€country€Y.€€TheÐ %8S Ðletter€of€credit€contains€no€boycott€conditions,€butÐ ì% T ÐA€knows€that€Y€customarily€requires€the€seller€ofÐ Ä&è U Ðgoods€to€certify€that€it€has€dealt€with€noÐ œ'À!V Ðblacklisted€supplier.€A,€therefore,€instructs€B€thatÐ t(˜"W Ðit€will€not€make€payment€under€the€letter€of€creditÐ L)p#X Ðunless€B€makes€such€a€certification.Ð $*H$Y ÐÌAððs€action€in€requiring€the€certification€from€BÐ Ô+ø%[ Ðconstitutes€action€to€require€another€person€toÐ ¬,Ð&\ Ðrefuse€to€do€business€with€blacklisted€persons.Ð Ü ÐÌà F à(xvi)€€A,€a€U.S.€bank€located€in€the€U.S.,€opensÐ Œ° Ða€letter€of€credit€in€favor€of€U.S.€beneficiary€B€forÐ dˆ ÐBððs€sale€of€goods€to€boycotting€country€Y.€€TheÐ < ` Ðletter€of€credit€contains€no€boycott€conditions,€butÐ  8 ÐA€has€actual€knowledge€that€B€has€agreed€toÐ ì  Ðsupply€a€certification€to€Y€that€it€has€not€dealtÐ Ä è Ðwith€blacklisted€firms,€as€a€condition€of€receivingÐ œ À Ðthe€letter€of€credit€in€its€favor.Ð t ˜  ÐÌA€may€not€implement€the€letter€of€credit,€becauseÐ $H  Ðit€knows€that€an€implicit€condition€of€the€credit€isÐ ü  Ða€condition€with€which€B€may€not€legally€comply.Ð Ôø  ÐÌà F à(xvii)€€Boycotting€country€Y€orders€goods€fromÐ „¨  ÐU.S.€company€B.€€Y€opens€a€letter€of€credit€withÐ \€  Ðforeign€bank€C€in€favor€of€B.€€The€letter€of€creditÐ 4X Ðincludes€the€statement,€ð ðDo€not€negotiate€withÐ  0 Ðblacklisted€banks.ðð€€C€forwards€the€letter€of€creditÐ ä Ðit€has€opened€to€U.S.€bank€A€for€confirmation.Ð ¼à ÐÌA€may€not€confirm€or€otherwise€implement€thisÐ l Ðletter€of€credit,€because€it€contains€a€conditionÐ Dh Ðwith€which€a€U.S.€person€may€not€comply.Ð @ ÐÌÔ  Ôò òÓ  Óðð760.3Ô es=¾ÔÐ Ìð ÐÌEXCEPTIONS€TO€PROHIBITIONSÐ |  Ðó óÓM¾ÓÌÓ  ÓÔ‡&Ø{%%%&rfÔ(a)€€òòImport€requirements€of€a€boycotting€Ð ,P ÐcountryóóÔ#†%&rf%%&Ø{Ú¾#ÔÐ  & ÐÓξÓÌà@ïï¸ àCOMPLIANCE€WITH€IMPORTˆÐ °!Ô! Ðà@¦¦ ¸ àREQUIREMENTS€OF€A€BOYCOTTINGˆÐ ˆ"¬" Ðà@ý ý ¸ àCOUNTRYˆÐ `#„# ÐÌÔ‡&¡z%%%&rfÔ(1)Ô#†%&rf%%&¡z?À#Ô€€A€United€States€person,€in€supplying€goods€orÐ %4% Ðservices€to€a€boycotting€country,€or€to€a€nationalÐ ì% & Ðor€resident€of€a€boycotting€country,€may€complyÐ Ä&è ' Ðor€agree€to€comply€with€requirements€of€suchÐ œ'À!( Ðboycotting€country€which€prohibit€the€import€of:Ð t(˜") ÐÌà F à(i)€€Goods€or€services€from€the€boycottedÐ $*H$+ Ðcountry;à h àÐ ü* %, ÐÌà F à(ii)€€Goods€produced€or€services€provided€byÐ ¬,Ð&. Ðany€business€concern€organized€under€the€laws€ofÐ Ü. Ðthe€boycotted€country;€orÐ ´Ø/ ÐÌà ® à(iii)€€Goods€produced€or€services€provided€byÐ dˆ1 Ðnationals€or€residents€of€the€boycotted€country.Ð < `2 ÐÌÔ‡‘&¡z%%%&rfÔ(2)Ô#†%&rf%%‘&¡z£Ã#Ô€€A€United€States€person€may€comply€or€agreeÐ ì 4 Ðto€comply€with€such€import€requirements€whetherÐ È ì5 Ðor€not€he€has€received€a€specific€request€toÐ   Ä6 Ðcomply.€€By€its€terms,€this€exception€applies€onlyÐ x œ7 Ðto€transactions€involving€imports€into€aÐ Pt8 Ðboycotting€country.€€A€United€States€person€mayÐ (L 9 Ðnot,€under€this€exception,€refuse€on€anÐ $ : Ðacross-the-board€basis€to€do€business€with€aÐ Øü ; Ðboycotted€country€or€a€national€or€resident€of€aÐ °Ô < Ðboycotted€country.€Ð ˆ¬ = ÐÌÔ‡’&¡z%%%&rfÔ(3)Ô#†%&rf%%’&¡zaÆ#Ô€€In€taking€action€within€the€scope€of€thisÐ 8\? Ðexception,€a€United€States€person€is€limited€in€theÐ 8@ Ðtypes€of€boycott-related€information€he€canÐ ìA Ðsupply.€€(See€ðð760.2(d)€of€this€part€onÐ ÄèB Ðð ðFurnishing€Information€About€BusinessÐ œÀC ÐRelationships€with€Boycotted€Countries€orÐ t˜D ÐBlacklisted€Personsðð€and€paragraph€(c)€of€thisÐ LpE Ðsection€on€ð ðImport€and€Shipping€DocumentÐ $HF ÐRequirements.ðð)Ð ü G ÐÌà@@@/ àEXAMPLES€OF€COMPLIANCE€WITHˆÐ ¬ÐI Ðà@ìì3 àIMPORT€REQUIREMENTSˆÐ „¨J Ðà@1 àOF€A€BOYCOTTING€COUNTRYˆÐ \€K ÐÌThe€following€examples€are€intended€to€giveÐ  0M Ðguidance€in€determining€the€circumstances€inÐ ä N Ðwhich€compliance€with€the€import€requirementsÐ ¼!àO Ðof€a€boycotting€country€is€permissible.€€They€areÐ ”"¸P Ðillustrative,€not€comprehensive.Ð l#Q Ðà@  < àˆà Ð àÌà ® à(i)€€A,€a€U.S.€manufacturer,€receives€an€orderÐ %@S Ðfrom€boycotting€country€Y€for€its€products.€Ð ô% T ÐCoun‚try€X€is€boycotted€by€country€Y,€and€theÐ Ì&ð U Ðimport€laws€of€Y€prohibit€the€importation€ofÐ ¤'È!V Ðgoods€produced€or€manufactured€in€X.€€In€fillingÐ |( "W Ðthis€type€of€order,€A€would€usually€include€someÐ T)x#X Ðcomponent€parts€produced€in€X.Ð ,*P$Y ÐÌFor€the€purpose€of€filling€this€order,€A€mayÐ Ü+&[ Ðsubstitute€comparable€component€parts€in€place€ofÐ ´,Ø&\ Ðparts€produced€in€X,€because€the€import€laws€of€YÐ Ü Ðprohibit€the€importation€of€goods€manufactured€inÐ ´Ø ÐX.Ð Œ° ÐÌà F à(ii)€€Same€as€(i),€except€that€Aððs€contract€with€YÐ < ` Ðexpressly€provides€that€in€fulfilling€the€contract€AÐ  8 Ðð ðmay€not€include€parts€or€components€producedÐ ì  Ðor€manufactured€in€boycotted€country€X.ððÐ Ä è ÐÌA€may€agree€to€and€comply€with€this€contractÐ t ˜  Ðprovision,€because€Y€prohibits€the€importation€ofÐ Lp  Ðgoods€from€X.€€However,€A€may€not€furnishÐ $H  Ðnegative€certifications€regarding€the€origin€ofÐ ü  Ðcomponents€in€response€to€import€and€shippingÐ Ôø  Ðdocument€requirements.Ð ¬Ð  ÐÌà F à(iii)€€A,€a€U.S.€building€contractor,€is€awarded€aÐ \€  Ðcontract€to€construct€a€plant€in€boycotting€countryÐ 4X ÐY.€€A€accepts€bids€on€goods€required€under€theÐ  0 Ðcontract,€and€the€lowest€bid€is€made€by€B,€aÐ ä Ðbusiness€concern€organized€under€the€laws€of€X,Ð ¼à Ða€country€boycotted€by€Y.€€Y€prohibits€the€importÐ ”¸ Ðof€goods€produced€by€companies€organized€underÐ l Ðthe€laws€of€X.Ð Dh ÐÌFor€purposes€of€this€contract,€A€may€reject€BððsÐ ô Ðbid€and€accept€another,€because€Bððs€goods€wouldÐ Ìð Ðbe€refused€entry€into€Y€because€of€Yððs€boycottÐ ¤È Ðagainst€X.Ð |  ÐÌà F à(iv)€€Same€as€(iii),€except€that€A€also€rejects€theÐ ,P Ðlow€bid€by€B€for€work€on€a€construction€project€inÐ  ( Ðcountry€M,€a€country€not€boycotted€by€Y.Ð Ü   ÐÌThis€exception€does€not€apply,€because€Aððs€actionÐ Œ"°" Ðis€not€taken€in€order€to€comply€with€YððsÐ d#ˆ# Ðrequirements€prohibiting€the€import€of€productsÐ <$`$ Ðfrom€boycotted€country€X.Ð %8% ÐÌà F à(v)€€A,€a€U.S.€management€consulting€firm,Ð Ä&è ' Ðcontracts€to€provide€services€to€boycottingÐ œ'À!( Ðcountry€Y.€€Y€requests€that€A€not€employÐ t(˜") Ðresidents€or€nationals€of€boycotted€country€X€toÐ L)p#* Ðprovide€those€services.à h àÐ $*H$+ Ðà F àà Ü àÌA€may€agree,€as€a€condition€of€the€contract,€not€toÐ Ô+ø%- Ðhave€services€furnished€by€nationals€or€residentsÐ ¬,Ð&. Ðof€X,€because€importation€of€such€services€isÐ Ü. Ðprohibited€by€Y.Ð ´Ø/ ÐÌà ® à(vi)€€A,€a€U.S.€company,€is€negotiating€aÐ dˆ1 Ðcontract€to€supply€machine€tools€to€boycottingÐ < `2 Ðcountry€Y.€€Y€insists€that€the€contract€contain€aÐ  83 Ðprovision€whereby€A€agrees€that€none€of€theÐ ì 4 Ðmachine€tools€will€be€produced€by€any€businessÐ Ä è5 Ðconcern€owned€by€nationals€of€boycotted€countryÐ œ À6 ÐX,€even€if€the€business€concern€is€organized€underÐ t ˜7 Ðthe€laws€of€a€non-boycotted€country.Ð Lp8 ÐÌA€may€not€agree€to€this€provision,€because€it€is€aÐ ü : Ðrestriction€on€the€import€of€goods€produced€byÐ Ôø ; Ðbusiness€concerns€owned€by€nationals€of€aÐ ¬Ð < Ðboycotted€country€even€if€the€business€concernsÐ „¨ = Ðthem‚selves€are€organized€under€the€laws€of€aÐ \€ > Ðnon-boycotted€country.Ð 4X? ÐÓ  ÓÔ‡&Ø{%%%&rfÔÌ(b)€€òòShipment€of€goods€to€a€boycotting€countryóóÔ#†%&rf%%&Ø{ZÛ#ÔÐ âA ÐÓNÛÓÌÓ  Óà@@‚‚ ¸ àCOMPLIANCE€WITH€REQUIREMENTSÐ ´C Ðà@@ ¸ àREGARDING€THE€SHIPMENT€OF€GOODSÐ hŒD ÐTO€à@@;;¸ àA€BOYCOTTING€COUNTRYÐ @dE ÐÓ÷ÛÓÌÔ‡”&¡z%%%&rfÔ(1)Ô#†%&rf%%”&¡zÛÜ#Ô€€A€United€States€person,€in€shipping€goods€toÐ ðG Ða€boycotting€country,€may€comply€or€agree€toÐ ÌðH Ðcomply€with€requirements€of€that€country€whichÐ ¤ÈI Ðprohibit€the€shipment€of€goods:Ð | J ÐÌà ® à(i)€€On€a€carrier€of€the€boycotted€country;€orÐ ,PL ÐÌà ® à(ii)€€By€a€route€other€than€that€prescribed€by€theÐ Ü N Ðboycotting€country€or€the€recipient€of€theÐ ´!ØO Ðshipment.Ð Œ"°P ÐÌÔ‡•&¡z%%%&rfÔ(2)Ô#†%&rf%%•&¡zß#Ô€€A€specific€request€that€a€United€States€personÐ <$`R Ðcomply€or€agree€to€comply€with€requirementsÐ %<S Ðconcerning€the€use€of€carriers€of€a€boycottedÐ ð% T Ðcountry€is€not€necessary€if€the€United€StatesÐ È&ì U Ðperson€knows,€or€has€reason€to€know,€that€the€useÐ  'Ä!V Ðof€such€carriers€for€shipping€goods€to€theÐ x(œ"W Ðboycotting€country€is€prohibited€by€requirementsÐ P)t#X Ðof€the€boycotting€country.€This€exception€appliesÐ (*L$Y Ðwhether€a€boycotting€country€or€the€purchaser€ofÐ +$%Z Ðthe€shipment:Ð Ø+ü%[ ÐÐ °,Ô&\ Ðà F à(i)€€Explicitly€states€that€the€shipment€shouldÐ Ü Ðnot€pass€through€a€port€of€the€boycotted€country;Ð ´Ø ÐorÐ Œ° ÐÌà F à(ii)€Affirmatively€describes€a€route€of€shipmentÐ < ` Ðthat€does€not€include€a€port€in€the€boycottedÐ  8 Ðcountry.Ð ì  ÐÌÔ‡–&¡z%%%&rfÔ(3)Ô#†%&rf%%–&¡zWã#Ô€€For€purposes€of€this€exception,€the€termÐ œ À Ðð ðcarrier€of€a€boycotted€countryðð€means€a€carrierÐ x œ  Ðwhich€flies€the€flag€of€a€boycotted€country€orÐ Pt  Ðwhich€is€owned,€chartered,€leased,€or€operated€byÐ (L  Ða€boycotted€country€or€by€nationals€or€residents€ofÐ $  Ða€boycotted€country.Ð Øü  ÐÌà@ ¸ àEXAMPLES€OF€COMPLIANCE€WITH€THEˆÐ ˆ¬  Ðà@EE¸ àSHIPPING€REQUIREMENTSˆÐ `„  Ðà@®®¸ àOF€A€BOYCOTTING€COUNTRYˆÐ 8\ ÐÌThe€following€examples€are€intended€to€giveÐ è  Ðguidance€in€determining€the€circumstances€inÐ Àä Ðwhich€compliance€with€import€and€shippingÐ ˜¼ Ðdocument€requirements€of€a€boycotting€country€isÐ p” Ðpermissible.€€They€are€illustrative,€notÐ Hl Ðcomprehensive.Ð  D ÐÌà F à(i)€€A€is€a€U.S.€exporter€from€whom€boycottingÐ Ðô Ðcountry€Y€is€importing€goods.€€Y€directs€that€theÐ ¨Ì Ðgoods€not€pass€through€a€port€of€boycottedÐ €¤ Ðcountry€X.Ð X| ÐÌA€may€comply€with€Yððs€shipping€instructions,Ð  , Ðbecause€they€pertain€to€the€route€of€shipment€ofÐ à   Ðgoods€being€shipped€to€Y.Ð ¸!Ü! ÐÌà F à(ii)€€A,€a€U.S.€fertilizer€manufacturer,€receivesÐ h#Œ# Ðan€order€from€boycotting€country€Y€for€fertilizer.€Ð @$d$ ÐY€specifies€in€the€order€that€A€may€not€ship€theÐ %<% Ðfertilizer€on€a€carrier€of€boycotted€country€X.Ð ð% & ÐÌA€may€comply€with€this€request,€because€itÐ  'Ä!( Ðpertains€to€the€carrier€of€a€boycotted€country.Ð x(œ") ÐÌà F à(iii)€€B,€a€resident€of€boycotting€country€Y,Ð (*L$+ Ðorders€textile€goods€from€A,€a€U.S.€distributor,Ð +$%, Ðspecifying€that€the€shipment€must€not€be€made€onÐ Ø+ü%- Ða€carrier€owned€or€leased€by€nationals€ofÐ °,Ô&. Ðboycotted€country€X€and€that€the€carrier€must€notÐ Ü. Ðpass€through€a€port€of€country€X€enroute€to€Y.Ð ´Ø/ ÐÌA€may€comply€or€agree€to€comply€with€theseÐ dˆ1 Ðrequests,€because€they€pertain€to€the€shipment€ofÐ < `2 Ðgoods€to€Y€on€a€carrier€of€a€boycotted€countryÐ  83 Ðand€the€route€such€shipment€will€take.Ð ì 4 ÐÌà ® à(iv)€€Boycotting€country€Y€orders€goods€fromÐ œ À6 ÐA,€a€U.S.€retail€merchant.€€The€order€specifiesÐ t ˜7 Ðthat€the€goods€shipped€by€A€ð ðmay€not€be€shippedÐ Lp8 Ðon€a€carrier€registered€in€or€owned€by€boycottedÐ $H 9 Ðcountry€X.ððÐ ü : ÐÌA€may€agree€to€this€contract€provision,€because€itÐ ¬Ð < Ðpertains€to€the€carrier€of€a€boycotted€country.Ð „¨ = ÐÌà ® à(v)€€Boycotting€country€Y€orders€goods€from€A,Ð 4X? Ða€U.S.€€pharmaceutical€company,€and€requestsÐ  0@ Ðthat€the€shipment€not€pass€through€a€port€ofÐ äA Ðcountry€P,€which€is€not€a€country€boycotted€by€Y.Ð ¼àB ÐÌThis€exception€does€not€apply€in€a€non-boycottingÐ lD Ðsituation.€A€may€comply€with€the€shippingÐ DhE Ðinstructions€of€Y,€because€in€doing€so€he€wouldÐ @F Ðnot€violate€any€prohibition€of€this€part.Ð ôG ÐÌà ® à(vi)€€Boycotting€country€Y€orders€goods€fromÐ ¤ÈI ÐA,€a€U.S.€manufacturer.€€The€order€specifies€thatÐ | J Ðgoods€shipped€by€A€ð ðmust€not€be€shipped€onÐ TxK Ðvessels€blacklisted€by€country€Yðð.Ð ,PL ÐÌA€may€not€agree€to€comply€with€the€this€conditionÐ Ü N Ðbecause€it€is€not€a€restriction€limited€to€the€use€ofÐ ´!ØO Ðcarriers€of€the€boycotted€country.Ð Œ"°P Ðà ® àà D àÌÓ  ÓÔ‡&Ø{%%%&rfÔ(c)€€òòImport€and€shipping€documentÐ <$`R ЀrequirementsóóÔ#†%&rf%%&Ø{*ó#ÔÐ %6S ÐÓóÓÌÓ  ÓCOMPLIANCE€WITH€IMPORT€AND€Ð À&ä U ÐSHIPPING€DOCUMENT€REQUIREMENTSÐ ˜'¼!V Ðà@@¯¯¸ àOF€A€BOYCOTTING€COUNTRYÐ p(”"W ÐÓÛóÓÌÔ‡˜&¡z%%%&rfÔ(1)Ô#†%&rf%%˜&¡z™ô#Ô€€A€United€States€person,€in€shipping€goods€toÐ  *D$Y Ða€boycotting€country,€may€comply€or€agree€toÐ ü* %Z Ðcomply€with€import€and€shipping€documentÐ Ô+ø%[ Ðrequirements€of€that€country,€with€respect€to:Ð ¬,Ð&\ Їà F à(i)€€The€country€or€origin€of€the€goods;Ð Ü ÐÌà F à(ii)€The€name€and€nationality€of€the€carrier;Ð Œ° ÐÌà F à(iii)€€The€route€of€the€shipment;Ð < ` ÐÌà F à(iv)€The€name,€residence,€or€address€of€theÐ ì  Ðsupplier€of€the€shipment;Ð Ä è ÐÌà F à(v)€€The€name,€residence,€or€address€of€theÐ t ˜  Ðprovider€of€other€services.Ð Lp  ÐÌÔ‡™&¡z%%%&rfÔ(2)Ô#†%&rf%%™&¡z¸÷#Ô€€Such€information€must€be€stated€in€positive,Ð ü  Ðnon-blacklisting,€non-exclusionary€terms€exceptÐ Øü  Ðfor€information€with€respect€to€the€names€orÐ °Ô  Ðnationalities€of€carriers€or€routes€of€shipment,Ð ˆ¬  Ðwhich€may€continue€to€be€stated€in€negative€termsÐ `„  Ðin€conjunction€with€shipments€to€a€boycottingÐ 8\ Ðcountry,€in€order€to€comply€with€precautionaryÐ 4 Ðrequirements€protecting€against€war€risks€orÐ è  Ðconfiscation.€Ð Àä Ðà@¸ ¸ ¸ àˆÌÓ  Óà@@>>/ àEXAMPLES€OF€COMPLIANCE€Ð p” ÐWITH€€IMPORT€AND€SHIPPINGÐ Hl ÐDOCUMENT€REQUIREMENTSÐ  D ÐÓMúÓÌThe€following€examples€are€intended€to€giveÐ Ðô Ðguidance€in€determining€the€circumstances€inÐ ¨Ì Ðwhich€compliance€with€the€import€requirementsÐ €¤ Ðof€a€boycotting€country€is€permissible.€€They€areÐ X| Ðillustrative,€not€comprehensive.Ð 0T ÐÌ€à F à(i)€€Boycotting€country€Y€contracts€with€A,€aÐ à   ÐU.S.€petroleum€equipment€manufacturer,€forÐ ¸!Ü! Ðcertain€equipment.€€Y€requires€that€goods€beingÐ "´" Ðimported€into€Y€must€be€accompanied€by€aÐ h#Œ# Ðcertification€that€the€goods€being€supplied€did€notÐ @$d$ Ðoriginate€in€boycotted€country€X.Ð %<% ÐÌA€may€not€supply€such€a€certification€in€negativeÐ È&ì ' Ðterms€but€may€identify€instead€the€country€ofÐ  'Ä!( Ðorigin€of€the€goods€in€positive€terms€only.Ð x(œ") ÐÌà F à(ii)€€Same€as€(i),€except€that€Y€requires€that€theÐ (*L$+ Ðshipping€documentation€accompanying€the€goodsÐ +$%, Ðspecify€the€country€of€origin€of€the€goods.Ð Ø+ü%- ÐÐ °,Ô&. ÐA€may€furnish€the€information.Ð Ü. ÐÌà ® à(iii)€[Reserved]Ð Œ°0 ÐÌà ® à(iv)€€A,€a€U.S.€apparel€manufacturer,€hasÐ < `2 Ðcontracted€to€sell€certain€of€its€products€to€B,€aÐ  83 Ðnational€of€boycotting€country€Y.€€The€form€thatÐ ì 4 Ðmust€be€submitted€to€customs€officials€of€YÐ Ä è5 Ðrequires€the€shipper€to€certify€that€the€goodsÐ œ À6 Ðcontained€in€the€shipment€have€not€been€suppliedÐ t ˜7 Ðby€ð ðblacklistedðð€persons.Ð Lp8 ÐÌA€may€not€furnish€the€information€in€negativeÐ ü : Ðterms€but€may€certify,€in€positive€terms€only,€theÐ Ôø ; Ðname€of€the€supplier€of€the€goods.Ð ¬Ð < ÐÌà ® à(v)€€Same€as€(iv),€except€the€customs€formÐ \€ > Ðrequires€certification€that€the€insurer€and€freightÐ 4X? Ðforwarder€used€are€not€ð ðblacklisted.ððÐ  0@ ÐÌA€may€not€comply€with€the€request€but€mayÐ ¼àB Ðsupply€a€certification€stating,€in€positive€termsÐ ”¸C Ðonly,€the€names€of€the€insurer€and€freightÐ lD Ðforwarder.Ð DhE ÐÌà ® à(vi)€€A,€a€U.S.€petrochemical€manufacturer,Ð ôG Ðexecutes€a€sales€contract€with€B,€a€resident€ofÐ ÌðH Ðboycotting€country€Y.€€A€provision€of€AððsÐ ¤ÈI Ðcontract€with€B€requires€that€the€bill€of€lading€andÐ | J Ðother€shipping€documents€contain€certificationsÐ TxK Ðthat€the€goods€have€not€been€shipped€on€aÐ ,PL Ðð ðblacklistedðð€carrier.Ð  (M Ðà ® àà D àà Ú àÌA€may€not€agree€to€supply€a€certification€that€theÐ ´!ØO Ðcarrier€is€not€ð ðblacklistedðð€but€may€certify€theÐ Œ"°P Ðname€of€the€carrier€in€positive€terms€only.Ð d#ˆQ ÐÌà ® à(vii)€€Same€as€(vi),€except€that€the€contractÐ %8S Ðrequires€certification€that€the€goods€will€not€beÐ ì% T Ðshipped€on€a€carrier€which€flies€the€flag€of,€or€isÐ Ä&è U Ðowned,€chartered,€leased,€or€operated€byÐ œ'À!V Ðboycotted€country€X,€or€by€nationals€or€residentsÐ t(˜"W Ðof€X.Ð L)p#X ÐÌSuch€a€certification,€which€is€a€reasonableÐ ü* %Z Ðrequirement€to€protect€against€war€risks€orÐ Ô+ø%[ Ðconfiscation,€may€be€furnished€at€any€time.€Ð ¬,Ð&\ Їà F à(viii)€€Same€as€(vi),€except€that€the€contractÐ Ü Ðrequires€that€the€shipping€documents€certify€theÐ ´Ø Ðname€of€the€carrier€being€used.Ð Œ° ÐÌA€may,€at€any€time,€supply€or€agree€to€supply€theÐ < ` Ðrequested€documentation€regarding€the€name€ofÐ  8 Ðthe€carrier,€either€in€negative€or€positive€terms.Ð ì  ÐÌà F à(ix)€€Same€as€(vi),€except€that€the€contractÐ œ À Ðrequires€a€certification€that€the€carrier€will€notÐ t ˜  Ðcall€at€a€port€in€boycotted€country€X€beforeÐ Lp  Ðmaking€delivery€in€Y.Ð $H  ÐÌSuch€a€certification,€which€is€a€reasonableÐ Ôø  Ðrequirement€to€protect€against€war€risks€orÐ ¬Ð  Ðconfiscation,€may€be€furnished€at€any€time.Ð „¨  ÐÌà F à(x)€€Same€as€(vi),€except€that€the€contractÐ 4X Ðrequires€that€the€shipping€documents€indicate€theÐ  0 Ðname€of€the€insurer€and€freight€forwarder.Ð ä ÐÌA€may€comply€at€any€time,€because€the€statementÐ ”¸ Ðis€not€required€to€be€made€in€negative€orÐ l Ðblacklisting€terms.Ð Dh ÐÌà F à(xi)€€A,€a€U.S.€exporter,€is€negotiating€a€contractÐ ô Ðto€sell€bicycles€to€boycotting€country€Y.€€Y€insistsÐ Ìð Ðthat€A€agree€to€certify€that€the€goods€will€not€beÐ ¤È Ðshipped€on€a€vessel€which€has€ever€called€at€aÐ |  Ðport€in€boycotted€country€X.Ð Tx ÐÌAs€distinguished€from€a€certification€that€goodsÐ  ( Ðwill€not€be€shipped€on€a€vessel€which€will€callÐ Ü   Ðenroute€at€a€port€of€boycotted€country€X,€such€aÐ ´!Ø! Ðcertification€is€not€a€reasonable€requirement€toÐ Œ"°" Ðprotect€against€war€risks€or€confiscation,€and,Ð d#ˆ# Ðhence,€may€not€be€supplied.Ð <$`$ ÐÌà F à(xii)€€Same€as€(xi),€except€that€Y€insists€that€AÐ ì% & Ðagree€to€certify€that€the€goods€will€not€be€shippedÐ Ä&è ' Ðon€a€carrier€that€is€ineligible€to€enter€Yððs€waters.Ð œ'À!( ÐÌSuch€a€certification,€which€is€not€a€reasonableÐ L)p#* Ðrequirement€to€protect€against€war€risks€orÐ $*H$+ Ðconfiscation€may€not€be€supplied.Ð ü* %, ÐÌÓ  ÓÔ‡ &Ø{%%%&rfÔ(d)€òòUnilateral€and€Specific€SelectionóóÔ#†%&rf%% &Ø{™#ÔÐ ¬,Ð&. ÐÓÓÌà@‘‘- àCOMPLIANCE€WITH€UNILATERAL€ANDˆÐ ´Ø/ Ðà@’’3 àSPECIFIC€SELECTIONˆÐ Œ°0 ÐÌÔ‡›&¡z%%%&rfÔ(1)Ô#†%&rf%%›&¡z­#Ô€€A€United€States€person€may€comply€or€agreeÐ < `2 Ðto€comply€in€the€normal€course€of€business€withÐ  <3 Ðthe€unilateral€and€specific€selection€by€aÐ ð 4 Ðboycotting€country,€a€national€of€a€boycottingÐ È ì5 Ðcountry,€or€a€resident€of€a€boycotting€countryÐ   Ä6 Ð(including€a€United€States€person€who€is€a€bonaÐ x œ7 Ðfide€resident€of€a€boycotting€country)€of€carriers,Ð Pt8 Ðinsurers,€suppliers€of€services€to€be€performedÐ (L 9 Ðwithin€the€boycotting€country,€or€specific€goods,Ð $ : Ðprovided€that€with€respect€to€services,€it€isÐ Øü ; Ðnecessary€and€customary€that€a€not€insignificantÐ °Ô < Ðpart€of€the€services€be€performed€within€theÐ ˆ¬ = Ðboycotting€country.€€With€respect€to€goods,€theÐ `„ > Ðitems,€in€the€normal€course€of€business,€must€beÐ 8\? Ðidentifiable€as€to€their€source€or€origin€at€the€timeÐ 4@ Ðof€their€entry€into€the€boycotting€country€by€(a)Ð è A Ðuniqueness€of€design€or€appearance€or€(b)Ð ÀäB Ðtrademark,€trade€name,€or€other€identificationÐ ˜¼C Ðnormally€on€the€items€themselves,€including€theirÐ p”D Ðpackaging.Ð HlE ÐÌÔ‡œ&¡z%%%&rfÔ(2)Ô#†%&rf%%œ&¡z#Ô€€This€exception€pertains€to€what€is€permissibleÐ øG Ðfor€a€United€States€person€who€is€the€recipient€ofÐ ÔøH Ða€unilateral€and€specific€selection€of€goods€orÐ ¬ÐI Ðservices€to€be€furnished€by€a€third€person.€€It€doesÐ „¨J Ðnot€pertain€to€whether€the€act€of€making€such€aÐ \€K Ðselection€is€permitted;€that€question€is€covered,Ð 4XL Ðwith€respect€to€United€States€persons,€inÐ  0M Ðparagraph€(g)€of€this€section€on€ð ðCompliance€withÐ ä N ÐLocal€Law.ðð€Nor€does€it€pertain€to€the€UnitedÐ ¼!àO ÐStates€person€who€is€the€recipient€of€an€order€toÐ ”"¸P Ðsupply€its€own€goods€or€services.€€Nothing€in€thisÐ l#Q Ðpart€prohibits€or€restricts€a€United€States€personÐ D$hR Ðfrom€filling€an€order€himself,€even€if€he€isÐ %@S Ðselected€by€the€buyer€on€a€boycott€basis€(e.g.,Ð ô% T Ðbecause€he€is€not€blacklisted),€so€long€as€he€doesÐ Ì&ð U Ðnot€himself€take€any€action€prohibited€by€thisÐ ¤'È!V Ðpart.Ð |( "W ÐÌà@"", àUNILATERAL€AND€SPECIFIC€CHARACTERˆÐ ,*P$Y Ðà@ØØ4 àOF€THE€SELECTIONˆÐ +(%Z ÐÌÔ‡&¡z%%%&rfÔ(3)Ô#†%&rf%%&¡zN#Ô€€In€order€for€this€exception€to€apply,€theÐ ´,Ø&\ Ðselection€with€which€a€United€States€personÐ Ü Ðwishes€to€comply€must€be€unilateral€and€specific.Ð ´Ø ÐÌÔ‡ž&¡z%%%&rfÔ(4)Ô#†%&rf%%ž&¡z[#Ô€€A€ð ðspecificðð€selection€is€one€which€is€statedÐ dˆ Ðin€the€affirmative€and€which€specifies€a€particularÐ @ d Ðsupplier€of€goods€or€services.Ð  < ÐÌÔ‡Ÿ&¡z%%%&rfÔ(5)Ô#†%&rf%%Ÿ&¡zf #Ô€€A€ð ðunilateralðð€selection€is€one€in€which€theÐ È ì Ðdiscretion€in€making€the€selection€is€exercised€byÐ ¤ È Ðthe€boycotting€country€buyer.€€If€the€United€StatesÐ |    Ðperson€who€receives€a€unilateral€selection€hasÐ Tx  Ðprovided€the€buyer€with€any€boycott-basedÐ ,P  Ðassistance€(including€information€for€purposes€ofÐ (  Ðhelping€the€buyer€select€someone€on€a€boycottÐ Ü  Ðbasis),€then€the€buyerððs€selection€is€not€unilateral,Ð ´Ø  Ðand€compliance€with€that€selection€by€a€UnitedÐ Œ°  ÐStates€person€does€not€come€within€thisÐ dˆ  Ðexception.Ð <` ÐÌÔ‡ &¡z%%%&rfÔ(6)Ô#†%&rf%% &¡zx##Ô€€The€provision€of€so-called€ð ðpre-selectionðð€orÐ ì Ðð ðpre-awardðð€services,€such€as€providing€lists€ofÐ Èì Ðqualified€suppliers,€subcontractors,€or€bidders,Ð  Ä Ðdoes€not,€in€and€of€itself,€destroy€the€unilateralÐ xœ Ðcharacter€of€a€selection,€provided€such€servicesÐ Pt Ðare€not€boycott-based.€€Lists€of€qualifiedÐ (L Ðsuppliers,€for€example,€must€not€exclude€anyoneÐ $ Ðbecause€he€is€blacklisted.€€Moreover,€suchÐ Øü Ðservices€must€be€of€the€type€customarily€providedÐ °Ô Ðin€similar€transactions€by€the€firm€(or€industry€ofÐ ˆ¬ Ðwhich€the€firm€is€a€part)€as€measured€by€theÐ `„ Ðpractice€in€non-boycotting€as€well€as€boycottingÐ 8\ Ðcountries.€€If€such€services€are€not€customarilyÐ  4 Ðprovided€in€similar€transactions€or€such€servicesÐ è   Ðare€provided€in€such€a€way€as€to€excludeÐ À!ä! Ðblacklisted€persons€from€participating€in€aÐ ˜"¼" Ðtransaction€or€diminish€their€opportunity€for€suchÐ p#”# Ðparticipation,€then€the€services€may€not€beÐ H$l$ Ðprovided€without€destroying€the€unilateralÐ  %D% Ðcharacter€of€any€subsequent€selection.Ð ø% & ÐÌà F àà Ü àà r àà  àà h àà@íí¸ àSELECTION€TO€BE€MADE€BYˆÐ ¨'Ì!( Ðà@ ¸ àBOYCOTTING€COUNTRY€RESIDENTˆÐ €(¤") ÐÌÔ‡¡&¡z%%%&rfÔ(7)Ô#†%&rf%%¡&¡zÂ)#Ô€€In€order€for€this€exception€to€be€available,€theÐ 0*T$+ Ðunilateral€and€specific€selection€must€have€beenÐ  +0%, Ðmade€by€a€boycotting€country,€or€by€a€national€orÐ ä+&- Ðresident€of€a€boycotting€country.€€Such€a€residentÐ ¼,à&. Ðmay€be€a€United€States€person.€€For€purposes€ofÐ Ü. Ðthis€exception,€a€United€States€person€will€beÐ ´Ø/ Ðconsidered€a€resident€of€a€boycotting€country€onlyÐ Œ°0 Ðif€he€is€a€bona€fide€resident.€€A€United€StatesÐ dˆ1 Ðperson€may€be€a€bona€fide€resident€of€aÐ < `2 Ðboycotting€country€even€if€such€personððsÐ  83 Ðresidency€is€temporary.Ð ì 4 ÐÌÔ‡¢&¡z%%%&rfÔ(8)Ô#†%&rf%%¢&¡zÛ,#Ô€€Factors€that€will€be€considered€in€determiningÐ œ À6 Ðwhether€a€United€States€person€is€a€bona€fideÐ x œ7 Ðresident€of€a€boycotting€country€include:Ð Pt8 ÐÌà ® à(i)€€Physical€presence€in€the€country;Ð $ : ÐÌà ® à(ii)€€Whether€residence€is€needed€for€legitimateÐ °Ô < Ðbusiness€reasons;Ð ˆ¬ = ÐÌà ® à(iii)€€Continuity€of€the€residency;Ð 8\? ÐÌà ® à(iv)€€Intent€to€maintain€the€residency;Ð è A ÐÌà ® à(v)€€Prior€residence€in€the€country;Ð ˜¼C ÐÌà ® à(vi)€€Size€and€nature€of€presence€in€the€country;Ð HlE Ѐà ® àÐ  DF Ðà ® à(vii)€€Whether€the€person€is€registered€to€doÐ øG Ðbusiness€or€incorporated€in€the€country;Ð ÐôH ÐÌà ® à(viii)€€Whether€the€person€has€a€valid€work€visa;Ð €¤J ÐandÐ X|K ÐÌà ® à(ix)€€Whether€the€person€has€a€similar€presenceÐ  ,M Ðin€both€boycotting€and€non-boycotting€foreignÐ à N Ðcountries€in€connection€with€similar€businessÐ ¸!ÜO Ðactivities.€€Ð "´P ÐÌà ® àNote€to€paragraph€(d)(8)€of€this€section:€€NoÐ @$dR Ðone€of€the€factors€is€dispositive.€All€theÐ %<S Ðcircumstances€will€be€examined€closely€toÐ ð% T Ðascertain€whether€there€is,€in€fact,€a€bona€fideÐ È&ì U Ðresidency.€€Residency€established€solely€forÐ  'Ä!V Ðpurposes€of€avoidance€of€the€application€of€thisÐ x(œ"W Ðpart,€unrelated€to€legitimate€business€needs,€doesÐ P)t#X Ðnot€constitute€bona€fide€residency.Ð (*L$Y ÐÌÔ‡£&¡z%%%&rfÔ(9)Ô#†%&rf%%£&¡zò3#Ô€€The€boycotting€country€resident€must€be€theÐ Ø+ü%[ Ðone€actually€making€the€selection.€€If€a€selectionÐ ´,Ø&\ Ðis€made€by€a€non-resident€agent,€parent,Ð Ü Ðsubsidiary,€affiliate,€home€office€or€branch€officeÐ ´Ø Ðof€a€boycotting€country€resident,€it€is€not€aÐ Œ° Ðselection€by€a€resident€within€the€meaning€of€thisÐ dˆ Ðexception.Ð < ` ÐÌÔ‡¤&¡z%%%&rfÔ(10ò òÔ#†%&rf%%¤&¡zï5#Ô)ó ó€€A€selection€made€solely€by€a€bona€fideÐ ì  Ðresident€and€merely€transmitted€by€another€personÐ È ì Ðto€a€United€States€person€for€execution€is€aÐ   Ä Ðselection€by€a€bona€fide€resident€within€theÐ x œ  Ðmeaning€of€this€exception.Ð Pt  ÐÌà@——¸ àÔ  ÔDUTY€OF€INQUIRYˆÐ $  ÐÌò ò(11)ó ó€€If€a€United€States€person€receives,€fromÐ °Ô  Ðanother€person€located€in€the€United€States,€whatÐ Œ°  Ðmay€be€a€unilateral€selection€by€a€boycottingÐ dˆ  Ðcountry€customer,€and€knows€or€has€reason€toÐ <` Ðknow€that€the€selection€is€made€for€boycottÐ 8 Ðreasons,€he€has€a€duty€to€inquire€of€theÐ ì Ðtransmitting€person€to€determine€who€actuallyÐ Äè Ðmade€the€selection.€€If€he€knows€or€has€reason€toÐ œÀ Ðknow€that€the€selection€was€made€by€other€than€aÐ t˜ Ðboycotting€country,€or€a€national€or€resident€of€aÐ Lp Ðboycotting€country,€he€may€not€comply.€€A€courseÐ $H Ðor€pattern€of€conduct€which€a€United€StatesÐ ü  Ðperson€recognizes€or€should€recognize€asÐ Ôø Ðconsistent€with€boycott€restrictions€will€create€aÐ ¬Ð Ðduty€to€inquire.Ð „¨ ÐÌò ò(12)ó ó€€If€the€United€States€person€does€not€know€orÐ 4X Ðhave€reason€to€know€that€the€selection€it€receivesÐ  4 Ðis€boycott-based,€its€compliance€with€such€aÐ è   Ðselection€does€not€offend€any€prohibition€and€thisÐ À!ä! Ðexception€is€not€needed.Ð ˜"¼" Ðà F àà Ü àà r àà  àà h àÌà@ss¸ àSELECTION€OF€SERVICESˆÐ H$l$ ÐÌò ò(13)€€ó óThis€exception€applies€only€to€complianceÐ ø% & Ðwith€selections€of€certain€types€of€suppliers€ofÐ Ô&ø ' Ðservices-carriers,€insurers,€and€suppliers€ofÐ ¬'Ð!( Ðservices€to€be€performed€ð ðwithin€the€boycottingÐ „(¨") Ðcountry.ðð€€Services€to€be€performed€wholly€withinÐ \)€#* Ðthe€United€States€or€wholly€within€any€countryÐ 4*X$+ Ðother€than€the€boycotting€country€are€not€covered.Ð  +0%, ЀÌò ò(14)€€ó óFor€purposes€of€this€part,€services€are€to€beÐ ¼,à&. Ðperformed€ð ðwithin€the€boycotting€countryðð€onlyÐ Ü. Ðif€they€are€of€a€type€which€would€customarily€beÐ ´Ø/ Ðperformed€by€suppliers€of€those€services€withinÐ Œ°0 Ðthe€country€of€the€recipient€of€those€services,€andÐ dˆ1 Ðif€the€part€of€the€services€performed€within€theÐ < `2 Ðboycotting€country€is€a€necessary€and€notÐ  83 Ðinsignificant€part€of€the€total€services€performed.Ð ì 4 ÐÌÔ‡¥&¡z%%%&rfÔ(15)Ô#†%&rf%%¥&¡zjA#Ô€€What€is€ð ðcustomary€and€necessaryðð€for€theseÐ œ À6 Ðpurposes€depends€on€the€usual€practice€of€theÐ x œ7 Ðsupplier€of€the€services€(or€the€industry€of€whichÐ Pt8 Ðhe€is€a€part)€as€measured€by€the€practice€inÐ (L 9 Ðnon-boycotti‚ng€as€well€as€boycotting€countries,Ð $ : Ðexcept€where€such€practices€are€instituted€toÐ Øü ; Ðaccommodate€this€part.Ð °Ô < ÐÌà@PP3 àSELECTION€OF€GOODSˆÐ `„ > ÐÌÔ‡¦&¡z%%%&rfÔ(16)Ô#†%&rf%%¦&¡z°C#Ô€€This€exception€applies€only€to€complianceÐ 4@ Ðwith€selections€of€certain€types€of€goods--goodsÐ ìA Ðthat,€in€the€normal€course€of€business,€areÐ ÄèB Ðidentifiable€as€to€their€source€or€origin€at€the€timeÐ œÀC Ðof€their€entry€into€the€boycotting€country.€€TheÐ t˜D Ðdefinition€of€ð ðspecifically€identifiable€goodsðð€isÐ LpE Ðthe€same€under€this€section€as€it€is€in€paragraphÐ $HF Ð(g)€of€this€section€on€ð ðCompliance€with€LocalÐ ü G ÐLaw.ððÐ ÔøH ÐÌÔ‡§&¡z%%%&rfÔ(17)Ô#†%&rf%%§&¡z@F#Ô€€Goods€ð ðspecifically€identifiableðð€in€theÐ „¨J Ðnormal€course€of€business€are€those€items€whichÐ `„K Ðat€the€time€of€their€entry€into€a€boycotting€countryÐ 8\L Ðare€identifiable€as€to€source€or€origin€byÐ  4M Ðuniqueness€of€design€or€appearance;€or€trademark,Ð è N Ðtrade€name,€or€other€identification€normally€onÐ À!äO Ðthe€items€themselves,€including€their€packaging.Ð ˜"¼P ÐGoods€are€ð ðspecifically€identifiableðð€in€theÐ p#”Q Ðnormal€course€of€business€if€their€source€or€originÐ H$lR Ðis€ascertainable€by€inspection€of€the€itemsÐ  %DS Ðthemselves,€including€their€packaging,€regardlessÐ ø% T Ðof€whether€inspection€takes€place.€€Goods€are€notÐ Ð&ô U Ðconsidered€to€be€ð ðspecifically€identifiableðð€in€theÐ ¨'Ì!V Ðnormal€course€of€business€if€a€trademark,€tradeÐ €(¤"W Ðname,€or€other€form€of€identification€not€normallyÐ X)|#X Ðpresent€is€added€to€the€items€themselves,Ð 0*T$Y Ðincluding€their€packaging,€to€accommodate€thisÐ +,%Z Ðpart.Ð à+&[ ÐÐ ¸,Ü&\ Ðà@ ¸ àÔ  ÔGENERALˆÐ Ü ÐÌÔ‡¨&¡z%%%&rfÔ(18)Ô#†%&rf%%¨&¡z†K#Ô€€If€a€unilateral€selection€meets€the€conditionsÐ Œ° Ðdescribed€in€paragraph€(d)€of€this€section,€theÐ hŒ ÐUnited€States€person€receiving€the€unilateralÐ @ d Ðselection€may€comply€or€agree€to€comply,€even€ifÐ  < Ðhe€knows€or€has€reason€to€know€that€the€selectionÐ ð  Ðwas€boycott-based.€€However,€no€United€StatesÐ È ì Ðperson€may€comply€or€agree€to€comply€with€anyÐ   Ä Ðunilateral€selection€if€he€knows€or€has€reason€toÐ x œ  Ðknow€that€the€purpose€of€the€selection€is€to€effectÐ Pt  Ðdiscrimination€against€any€United€States€personÐ (L  Ðon€the€basis€of€race,€religion,€sex,€or€nationalÐ $  Ðorigin.Ð Øü  ÐÌà@ ¸ àEXAMPLES€OF€COMPLIANCE€WITH€AˆÐ ˆ¬  Ðà@ll¸ àUNI‚LATERAL€SELECTIONˆÐ `„  ÐÌThe€following€examples€are€intended€to€giveÐ 4 Ðguidance€in€determining€what€constitutes€aÐ è  Ðunilateral€selection€and€the€circumstances€inÐ Àä Ðwhich€compliance€with€such€a€selection€isÐ ˜¼ Ðpermissible.€They€are€illustrative,€notÐ p” Ðcomprehensive.Ð Hl ÐÌà@óó ¸ àSPECIFIC€AND€UNILATERAL€SELECTIONˆÐ ø ÐÌà F à(i)€€A,€a€U.S.€manufacturer€of€road-gradingÐ ¨Ì Ðequipment,€is€asked€by€boycotting€country€Y€toÐ €¤ Ðship€goods€to€Y€on€U.S.€vessel€B,€a€carrier€whichÐ X| Ðis€not€blacklisted€by€Y.€€A€knows€or€has€reason€toÐ 0T Ðknow€that€Yððs€selection€of€B€is€boycott-based.Ð  , ÐÌA€may€comply€with€Yððs€request,€or€may€agree€toÐ ¸!Ü! Ðcomply€as€a€condition€of€the€contract,€because€theÐ "´" Ðselection€is€specific€and€unilateral.Ð h#Œ# ÐÌà F à(ii)€€A,€a€U.S.€contractor€building€an€industrialÐ %<% Ðfacility€in€boycotting€country€Y€is€asked€by€B,€aÐ ð% & Ðresident€of€Y,€to€use€C€as€the€supplier€of€airÐ È&ì ' Ðconditioning€equipment€to€be€used€in€the€facility.€Ð  'Ä!( ÐC€is€not€blacklisted€by€country€Y.€A€knows€or€hasÐ x(œ") Ðreason€to€know€that€Bððs€request€is€boycott-based.€Ð P)t#* ÐÌA€may€comply€with€Bððs€request,€or€may€agree€toÐ +$%, Ðcomply€as€a€condition€of€the€contract,€because€theÐ Ø+ü%- Ðselection€of€C€is€specific€and€unilateral.Ð °,Ô&. Їà ® à(iii)€€A,€a€U.S.€manufacturer€of€automotiveÐ Ü. Ðequipment,€is€asked€by€boycotting€country€Y€notÐ ´Ø/ Ðto€ship€its€goods€to€Y€on€U.S.€carriers,€B,€C,€or€D.€Ð Œ°0 ÐCarriers€B,€C,€and€D€are€blacklisted€by€boycottingÐ dˆ1 Ðcountry€Y.€€A€knows€or€has€reason€to€know€thatÐ < `2 ÐYððs€request€is€boycott-based.Ð  83 ÐÌA€may€not€comply€or€agree€to€comply€with€YððsÐ Ä è5 Ðrequest,€because€no€specific€selection€of€anyÐ œ À6 Ðparticular€carrier€has€been€made.Ð t ˜7 ÐÌà ® à(iv)€€A,€a€U.S.€exporter€shipping€goods€orderedÐ $H 9 Ðby€boycotting€country€Y,€is€provided€by€Y€with€aÐ ü : Ðlist€of€eligible€U.S.€insurers€from€which€A€mayÐ Ôø ; Ðchoose€in€insuring€the€shipment€of€its€goods.€€AÐ ¬Ð < Ðknows€or€has€reason€to€know€that€the€list€wasÐ „¨ = Ðcompiled€on€a€boycott€basis.Ð \€ > ÐÌA€may€not€comply€or€agree€to€comply€with€YððsÐ  0@ Ðrequest€that€A€choose€from€among€the€eligibleÐ äA Ðinsurers,€because€no€specific€selection€of€anyÐ ¼àB Ðparticular€insurer€has€been€made.Ð ”¸C ÐÌà ® à(v)€€A,€a€U.S.€aircraft€manufacturer,€isÐ DhE Ðnegotiating€to€sell€aircraft€to€boycotting€countryÐ @F ÐY.€€During€the€negotiations,€Y€asks€A€to€identifyÐ ôG Ðthe€company€which€normally€manufactures€theÐ ÌðH Ðengines€for€the€aircraft.€€A€responds€that€they€areÐ ¤ÈI Ðnormally€manufactured€by€U.S.€engineÐ | J Ðmanufacturer€B.€€B€is€blacklisted€by€Y.€€In€makingÐ TxK Ðthe€purchase,€Y€specifies€that€the€engines€for€theÐ ,PL Ðaircraft€should€be€supplied€by€U.S.€engineÐ  (M Ðmanufacturer€C.Ð Ü N ÐÌA€may€comply€or€agree€to€comply€with€YððsÐ Œ"°P Ðselection€of€C,€because€Yððs€selection€is€unilateralÐ d#ˆQ Ðand€specific.Ð <$`R ÐÌà ® à(vi)€€A,€a€U.S.€construction€firm,€is€retained€byÐ ì% T Ðan€agency€of€boycotting€country€Y€to€build€aÐ Ä&è U Ðpipeline.€€Y€requests€A€to€suggest€qualifiedÐ œ'À!V Ðengineering€firms€to€be€used€on-site€in€theÐ t(˜"W Ðconstruction€of€the€pipeline.€€It€is€customary€forÐ L)p#X ÐA,€regardless€of€where€it€conducts€its€operations,Ð $*H$Y Ðto€identify€qualified€engineering€firms€to€itsÐ ü* %Z Ðcustomers€so€that€its€customers€may€make€theirÐ Ô+ø%[ Ðown€selection€of€the€firm€to€be€engaged.€€ChoiceÐ ¬,Ð&\ Ðof€engineering€firm€is€customarily€a€prerogativeÐ Ü Ðof€the€customer.€€A€provides€a€list€of€fiveÐ ´Ø Ðengineering€firms,€B-F,€excluding€no€firmÐ Œ° Ðbecause€it€may€be€blacklisted,€and€then€confersÐ dˆ Ðwith€and€gives€its€recommendations€to€Y.€€AÐ < ` Ðrecommends€C,€because€C€is€the€best€qualified.€€YÐ  8 Ðthen€selects€B,€because€C€is€blacklisted.Ð ì  ÐÌA€may€comply€with€Yððs€selection€of€B,€becauseÐ œ À Ðthe€boycott-based€decision€is€made€by€Y€and€isÐ t ˜  Ðunilateral€and€specific.€€Since€Aððs€pre-awardÐ Lp  Ðservices€are€of€the€kind€customarily€provided€inÐ $H  Ðthese€situations,€and€since€they€are€providedÐ ü  Ðwithout€reference€to€the€boycott,€they€do€notÐ Ôø  Ðdestroy€the€unilateral€character€of€Yððs€selection.Ð ¬Ð  ÐÌà F à(vii)€€A,€a€U.S.€aircraft€manufacturer,€has€anÐ \€  Ðorder€to€supply€a€certain€number€of€planes€toÐ 4X Ðboycotting€country€Y.€€In€connection€with€theÐ  0 Ðorder,€Y€asks€A€to€supply€it€with€a€list€of€qualifiedÐ ä Ðaircraft€tire€manufacturers€so€that€Y€can€select€theÐ ¼à Ðtires€to€be€placed€on€the€planes.€€This€is€a€highlyÐ ”¸ Ðunusual€request,€since,€in€Aððs€worldwide€businessÐ l Ðoperations,€choice€of€tires€is€customarily€made€byÐ Dh Ðthe€manufacturer,€not€the€customer.€Nonetheless,Ð @ ÐA€supplies€a€list€of€tire€manufacturers,€B,€C,€D,Ð ô Ðand€E.€€Y€chooses€tire€manufacturer€B€because€BÐ Ìð Ðis€not€blacklisted.€€Had€A,€as€is€customary,Ð ¤È Ðselected€the€tires,€company€C€would€have€beenÐ |  Ðchosen.€€C€happens€to€be€blacklisted,€and€AÐ Tx Ðknows€that€Cððs€blacklist€status€was€the€reason€forÐ ,P ÐYððs€selection€of€B.Ð  ( ÐÌAððs€provision€of€a€list€of€tire€manufacturers€for€YÐ ´!Ø! Ðto€choose€from€destroys€the€unilateral€character€ofÐ Œ"°" ÐYððs€selection,€because€such€a€pre-selectionÐ d#ˆ# Ðservice€is€not€customary€in€Aððs€worldwideÐ <$`$ Ðbusiness€operations.Ð %8% ÐÌà F à(viii)€€A,€a€U.S.€aircraft€manufacturer,€receivesÐ Ä&è ' Ðan€order€from€U.S.€company€C,€which€is€locatedÐ œ'À!( Ðin€the€United€States,€for€the€sale€of€aircraft€toÐ t(˜") Ðcompany€D,€a€U.S.€affiliate€of€C.€€D€is€a€bona€fideÐ L)p#* Ðresident€of€boycotting€country€Y.€€C€instructs€AÐ $*H$+ Ðthat€ð ðin€order€to€avoid€boycott€problems,ðð€A€mustÐ ü* %, Ðuse€engines€that€are€manufactured€by€company€B,Ð Ô+ø%- Ða€company€that€is€not€blacklisted€by€Y.€€EnginesÐ ¬,Ð&. Ðbuilt€by€B€are€unique€in€design€and€also€bear€BððsÐ Ü. Ðtrade€name.Ð ´Ø/ ÐÌSince€A€has€reason€to€know€that€the€selection€isÐ dˆ1 Ðboycott-based,€he€must€inquire€of€C€whether€theÐ < `2 Ðselection€was€in€fact€made€by€D.€If€C€informs€AÐ  83 Ðthat€the€selection€was€made€by€D,€A€may€comply.Ð ì 4 ÐÌà ® à(ix)€€Same€as€(viii),€except€that€C€initially€statesÐ œ À6 Ðthat€the€designation€was€unilaterally€andÐ t ˜7 Ðspecifically€made€by€D.Ð Lp8 ÐÌA€may€accept€Cððs€statement€without€furtherÐ ü : Ðinvestigation€and€may€comply€with€the€selection,Ð Ôø ; Ðbecause€C€merely€transmitted€Dððs€unilateral€andÐ ¬Ð < Ðspecific€selection.Ð „¨ = ÐÌ(x)€€Same€as€(ix),€except€that€C€informs€A€that€it,Ð 4X? ÐC,€has€selected€B€on€behalf€of€or€as€an€agent€of€itsÐ  0@ Ðaffiliated€company€resident€in€the€boycottingÐ äA Ðcountry.Ð ¼àB ÐÌA€may€not€comply€with€this€selection,€because€theÐ lD Ðdecision€was€not€made€by€a€resident€of€theÐ DhE Ðboycotting€country.Ð @F ÐÌà ® à(xi)€€A,€a€U.S.€management€consulting€firm,€isÐ ÌðH Ðadvising€boycotting€country€Y€on€the€selection€ofÐ ¤ÈI Ða€contracting€firm€to€construct€a€plant€for€theÐ | J Ðmanufacture€of€agricultural€chemicals.€€As€isÐ TxK Ðcustomary€in€its€business,€A€compiles€a€list€ofÐ ,PL Ðpotential€contractors€on€the€basis€of€its€evaluationÐ  (M Ðof€the€capabilities€of€the€respective€candidates€toÐ Ü N Ðperform€the€job.€€A€has€knowledge€that€companyÐ ´!ØO ÐB€is€blacklisted,€but€provides€Y€with€the€names€ofÐ Œ"°P Ðcompanies€B,€C,€D,€and€E,€listing€them€in€order€ofÐ d#ˆQ Ðtheir€qualifications.€Y€instructs€A€to€negotiateÐ <$`R Ðwith€C.Ð %8S ÐÌA€may€comply€with€Yððs€instruction,€because€YððsÐ Ä&è U Ðselection€is€unilateral€and€specific.Ð œ'À!V ÐÌà ® à(xii)€€A,€a€U.S.€exporter,€is€asked€by€boycottingÐ L)p#X Ðcountry€Y€not€to€ship€goods€on€carriers€B,€C,€orÐ $*H$Y ÐD,€which€are€owned€by€nationals€of€and€areÐ ü* %Z Ðregistered€in€country€P,€a€country€not€boycottedÐ Ô+ø%[ Ðby€Y.Ð ¬,Ð&\ ЇA€may€comply€or€agree€to€comply€with€YððsÐ Ü Ðrequest€even€though€the€selection€is€not€specific,Ð ´Ø Ðbecause€A€does€not€know€or€have€reason€to€knowÐ Œ° Ðthat€the€request€is€boycott-based.€€(NOTE:€InÐ dˆ Ðexample€(xii),€A€has€violated€no€prohibition,Ð < ` Ðbecause€it€does€not€know€or€have€reason€to€knowÐ  8 Ðthat€Yððs€instruction€is€boycott-based.€€Therefore,Ð ì  ÐA€could€not€act€with€the€requisite€intent€toÐ Ä è Ðcomply€with€the€boycott.)Ð œ À ÐÌà F à(xiii)€€A,€a€U.S.€construction€company,€receivesÐ Lp  Ða€contract€to€construct€a€hotel€in€boycottingÐ $H  Ðcountry€Y.€€As€part€of€the€contract,€A€is€requiredÐ ü  Ðto€furnish€Y€with€lists€of€qualified€suppliers€ofÐ Ôø  Ðvarious€specifically€identifiable€items.€€€AÐ ¬Ð  Ðcompiles€lists€of€various€qualified€suppliersÐ „¨  Ðwholly€without€reference€to€the€boycott,€andÐ \€  Ðthereafter€Y€instructs€A€to€negotiate€with,€enterÐ 4X Ðinto€contracts€with,€and€arrange€for€delivery€fromÐ  0 Ðeach€of€the€suppliers€which€Y€designates.€€AÐ ä Ðknows€that€Yððs€choices€are€made€on€a€boycottÐ ¼à Ðbasis.Ð ”¸ ÐÌA€may€comply€with€Yððs€selections€and€carry€outÐ Dh Ðthese€post-award€services€for€Y,€because€YððsÐ @ Ðselections€were€unilateral€and€specific€and€AððsÐ ô Ðpre-award€services€were€provided€withoutÐ Ìð Ðreference€to€Yððs€boycott.Ð ¤È ÐÌà@   ¸ àEXAMPLES€OF€BOYCOTTING€COUNTRYˆÐ Tx Ðà@‚ ‚ ¸ àBUYERˆÐ ,P ÐÌ(The€factors€in€determining€whether€a€UnitedÐ Ü   ÐStates€person€is€a€ð ðbona€fide€residentðð€of€aÐ ´!Ø! Ðboycotting€country€are€the€same€as€in€paragraphÐ Œ"°" Ð(g)€of€this€section€on€ð ðCompliance€with€LocalÐ d#ˆ# ÐLaw.ðð€€See€also€the€examples€in€that€section.)Ð <$`$ ÐÌà F à(i)€€A,€a€U.S.€exporter,€is€asked€by€B,€a€U.S.Ð ì% & Ðperson€who€is€a€bona€fide€resident€of€boycottingÐ Ä&è ' Ðcountry€Y,€to€ship€goods€on€U.S.€carrier€C.€€C€isÐ œ'À!( Ðnot€blacklisted€by€Y,€and€A€knows€that€B€hasÐ t(˜") Ðchosen€on€a€boycott€basis€in€order€to€comply€withÐ L)p#* ÐYððs€boycott€laws.Ð $*H$+ ÐÌA€may€comply€or€agree€to€comply€with€BððsÐ Ô+ø%- Ðrequest,€because€B€is€a€bona€fide€resident€of€Y.Ð ¬,Ð&. Їà ® à(ii)€€A€is€a€U.S.€computer€company€whoseÐ Ü. Ðsubsidiary,€B,€is€a€bona€fide€resident€ofÐ ´Ø/ Ðboycotting€country€Y.€€A€receives€an€order€fromÐ Œ°0 ÐB€for€specific,€identifiable€products€manufacturedÐ dˆ1 Ðby€company€C€in€connection€with€a€computerÐ < `2 Ðwhich€B€is€installing€in€Y.Ð  83 ÐÌA€may€comply€or€agree€to€comply€with€BððsÐ Ä è5 Ðunilateral€and€specific€selection,€so€long€as€theÐ œ À6 Ðdiscretion€was€in€fact€exercised€by€B,€not€A.€Ð t ˜7 Ð(NOTE:€Unilateral€selection€transactionsÐ Lp8 Ðinvolving€related€United€States€persons€will€beÐ $H 9 Ðscrutinized€carefully€to€ensure€that€the€selectionÐ ü : Ðwas€in€fact€made€by€the€bona€fide€resident€of€theÐ Ôø ; Ðboycotting€country.)Ð ¬Ð < ÐÌà ® à(iii)€€A,€a€U.S.€engineering€firm,€has€chiefÐ \€ > Ðengineer€B€as€its€resident€engineer€on€a€damÐ 4X? Ðconstruction€site€in€boycotting€country€Y.€€BððsÐ  0@ Ðpresence€at€the€site€is€necessary€in€order€to€ensureÐ äA Ðproper€supervision€of€the€project.€€In€order€toÐ ¼àB Ðcomply€with€local€law,€B€selects€equipmentÐ ”¸C Ðsupplier€C€rather€than€D,€who€is€blacklisted,€andÐ lD Ðdirects€A€to€purchase€certain€specific€equipmentÐ DhE Ðfrom€C€for€use€in€the€project.Ð @F ÐÌA€may€comply€with€this€unilateral€selection,Ð ÌðH Ðbecause€the€decision€was€made€by€a€bona€fideÐ ¤ÈI Ðresident€of€Y.Ð | J ÐÌ(As€noted€above,€unilateral€selections€involvingÐ ,PL Ðrelated€United€States€persons€will€be€scrutinizedÐ  (M Ðcarefully€to€ensure€that€the€selection€was€in€factÐ Ü N Ðmade€by€the€bona€fide€resident€of€the€boycottingÐ ´!ØO Ðcountry.)Ð Œ"°P ÐÌà ® à(iv)€€B,€a€branch€of€U.S.€bank€A,€is€located€inÐ <$`R Ðboycotting€country€Y.€€B€is€in€need€of€officeÐ %8S Ðsupplies€and€asks€the€home€office€in€New€York€toÐ ì% T Ðmake€the€necessary€purchases.€€A€contacts€C,€aÐ Ä&è U ÐU.S.€company€in€the€office€supply€business,€andÐ œ'À!V Ðinstructs€C€to€purchase€various€items€from€certainÐ t(˜"W Ðspecific€companies€and€ship€them€directly€to€B.€Ð L)p#X ÐIn€order€to€avoid€any€difficulties€for€B€withÐ $*H$Y Ðrespect€to€Yððs€boycott€laws,€A€is€careful€toÐ ü* %Z Ðspecify€only€non-blacklisted€companies€orÐ Ô+ø%[ Ðsuppliers.€€C€knows€that€that€was€Aððs€purpose.€€CÐ ¬,Ð&\ Ðmay€not€comply€with€Aððs€instruction,€because€theÐ Ü Ðselection€of€suppliers€was€not€made€by€a€residentÐ ´Ø Ðof€a€boycotting€country.Ð Œ° ÐÌà F à(v)€€Same€as€(iv),€except€that€A€has€givenÐ < ` Ðstanding€instructions€to€B€that€whenever€it€needsÐ  8 Ðoffice€supplies,€it€should€specify€certain€suppliersÐ ì  Ðdesignated€by€A.€€To€avoid€running€afoul€of€YððsÐ Ä è Ðboycott€laws,€Aððs€designations€consist€exclusivelyÐ œ À Ðof€non-blacklisted€firms.€€A€receives€an€orderÐ t ˜  Ðfrom€B€with€the€suppliers€designated€inÐ Lp  Ðaccordance€with€Aððs€instructions.Ð $H  ÐÌA€may€not€comply€with€Bððs€selection,€because€theÐ Ôø  Ðselection€was€not€in€fact€made€by€a€bonafideÐ ¬Ð  Ðresident€of€the€boycotting€country,€but€by€aÐ „¨  Ðperson€located€in€the€United€States.Ð \€  ÐÌà@ ¸ àEXAMPLES€OF€SUPPLIERS€OF€SERVICESˆÐ  0 ÐÌà F à(i)€€A,€a€U.S.€manufacturer,€is€asked€byÐ ¼à Ðboycotting€country€Y€to€ship€goods€to€Y€on€U.S.Ð ”¸ Ðvessel€B,€a€carrier€which€is€not€blacklisted€by€Y.Ð l Ðà F àà Ü àà r àÌA€may€comply€or€agree€to€comply€with€Yððs€reÐ @ Ðquest,€because€compliance€with€the€unilateral€andÐ ô Ðspecific€selection€of€carriers€is€expresslyÐ Ìð Ðpermitted€under€this€exception.Ð ¤È ÐÌà F à(ii)€€A,€a€U.S.€exporter€shipping€goods€orderedÐ Tx Ðby€C,€a€national€of€boycotting€country€Y,€is€askedÐ ,P Ðby€C€to€insure€the€shipment€through€U.S.€insurerÐ  ( ÐB.Ð Ü   ÐÌA€may€comply€or€agree€to€comply€with€CððsÐ Œ"°" Ðrequest,€because€compliance€with€the€unilateralÐ d#ˆ# Ðand€specific€selection€of€an€insurer€is€expresslyÐ <$`$ Ðpermitted€under€this€exception.Ð %8% ÐÌà F à(iii)€€A,€a€U.S.€construction€company,€is€hiredÐ Ä&è ' Ðby€C,€an€agency€of€the€government€of€boycottingÐ œ'À!( Ðcountry€Y,€to€build€a€power€plant€in€Y.€€CÐ t(˜") Ðspecifies€that€A€should€subcontract€the€foundationÐ L)p#* Ðwork€to€U.S.€contractor€B.€€Part€of€the€foundationÐ $*H$+ Ðdesign€work€will€be€done€by€B€in€the€UnitedÐ ü* %, ÐStates.Ð Ô+ø%- ÐÐ ¬,Ð&. ÐA€may€comply€or€agree€to€comply€with€YððsÐ Ü. Ðdesignation,€because€a€necessary€and€notÐ ´Ø/ Ðinsignificant€part€of€Bððs€services€are€to€beÐ Œ°0 Ðperformed€within€the€boycotting€country,€andÐ dˆ1 Ðsuch€services€are€customarily€performed€on-site.Ð < `2 ÐÌà ® à(iv)€€A,€a€U.S.€contractor,€is€engaged€byÐ ì 4 Ðboycotting€country€Y€to€build€a€power€plant.€€YÐ Ä è5 Ðspecifies€that€U.S.€architectural€firm€B€should€beÐ œ À6 Ðretained€by€A€to€design€the€plant.€In€order€toÐ t ˜7 Ðdesign€the€plant,€it€is€essential€that€Bððs€personnelÐ Lp8 Ðvisit€and€become€familiar€with€the€site,€althoughÐ $H 9 Ðthe€bulk€of€the€design€and€drawing€work€will€beÐ ü : Ðdone€in€the€United€States.Ð Ôø ; ÐÌA€may€comply€or€agree€to€comply€with€YððsÐ „¨ = Ðunilateral€and€specific€selection€of€architecturalÐ \€ > Ðfirm€B,€because€a€necessary€and€not€insignificantÐ 4X? Ðpart€of€Bððs€services€are€to€be€performed€within€Y,Ð  0@ Ðand€such€on-site€work€is€customarily€involved€inÐ äA Ðthe€provision€of€architectural€services.€€The€factÐ ¼àB Ðthat€the€bulk€of€the€actual€work€may€be€performedÐ ”¸C Ðin€the€United€States€is€irrelevant€since€the€part€toÐ lD Ðbe€performed€within€Y€is€necessary€to€BððsÐ DhE Ðeffective€performance.Ð @F ÐÌà ® à(v)€€Same€as€(iv),€except€that€Y€specifies€thatÐ ÌðH Ðthe€turbine€for€the€power€plant€should€be€designedÐ ¤ÈI Ðby€U.S.€engineer€C.€€It€is€neither€customary€norÐ | J Ðnecessary€for€C€to€visit€the€site€in€order€to€do€anyÐ TxK Ðof€his€work,€but€C€has€informed€A€that€he€wouldÐ ,PL Ðprobably€want€to€visit€the€site€in€Y€if€he€wereÐ  (M Ðselected€for€the€job.Ð Ü N ÐÌA€may€not€comply€or€agree€to€comply€with€YððsÐ Œ"°P Ðrequest,€because,€in€the€normal€course€ofÐ d#ˆQ Ðbusiness,€it€is€neither€customary€nor€necessary€forÐ <$`R Ðengineer€Cððs€services€to€be€performed€in€Y.Ð %8S ÐÌà ® à(vi)€€A,€a€U.S.€aircraft€manufacturer,€receives€aÐ Ä&è U Ðcontract€from€boycotting€country€Y€toÐ œ'À!V Ðmanufacture€jet€engines€for€Yððs€use.€€Y€specifiesÐ t(˜"W Ðthat€the€engines€should€be€designed€by€U.S.Ð L)p#X Ðindustrial€engineering€firm€B.Ð $*H$Y ÐÌA€may€not€comply€or€agree€to€comply€with€YððsÐ Ô+ø%[ Ðrequest,€because,€in€the€normal€course€ofÐ ¬,Ð&\ Ðbusiness,€the€services€will€not€be€performed€in€Y.Ð Ü ÐÌà F à(vii)€€U.S.€company€A€has€a€contract€to€supplyÐ Œ° Ðspecially€designed€road€graders€to€boycottingÐ dˆ Ðcountry€Y.€€Y€has€instructed€A€that€it€shouldÐ < ` Ðengage€engineering€firm€B€in€the€design€workÐ  8 Ðrather€than€engineering€firm€C,€which€A€normallyÐ ì  Ðuses,€because€C€is€blacklisted.€€When€A€contactsÐ Ä è ÐB,€B€informs€A€that€one€of€Bððs€personnelÐ œ À Ðcustomarily€visits€the€location€in€which€anyÐ t ˜  Ðequipment€B€designs€is€used€after€it€is€in€use,€inÐ Lp  Ðorder€to€determine€how€good€a€design€job€B€hasÐ $H  Ðdone.€€Such€visits€are€necessary€from€Bððs€point€ofÐ ü  Ðview€to€provide€a€check€on€the€quality€of€its€work,Ð Ôø  Ðand€they€are€necessary€from€Yððs€point€of€viewÐ ¬Ð  Ðbecause€they€make€it€possible€for€Y€to€discussÐ „¨  Ðpossible€design€changes€should€deficiencies€beÐ \€  Ðdetected.Ð 4X ÐÌA€may€not€comply€with€Yððs€selection€of€B,Ð ä Ðbecause€the€services€which€B€would€perform€in€YÐ ¼à Ðare€an€insignificant€part€of€the€total€services€to€beÐ ”¸ Ðperformed€by€B.Ð l ÐÌà@·· ¸ àEXAMPLES€OF€SPECIFICALLYˆÐ @ Ðà@øø¸ àIDENTIFIABLE€GOODSˆÐ ô ÐÌ(The€test€of€what€constitutes€ð ðspecificallyÐ ¤È Ðidentifiable€goodsðð€under€this€exception€alsoÐ |  Ðapplies€to€the€term€ð ðspecifically€identifiableÐ Tx Ðgoodsðð€as€used€in€paragraph€(g)€of€this€section€onÐ ,P Ðð ðCompliance€with€Local€Law.ðð)Ð  ( ÐÌà F à(i)€€A,€a€U.S.€contractor,€is€constructing€anÐ ´!Ø! Ðapartment€complex,€on€a€turnkey€basis,€forÐ Œ"°" Ðboycotting€country€Y.€€Y€instructs€A€to€use€onlyÐ d#ˆ# Ðkitchen€appliances€manufactured€by€U.S.Ð <$`$ Ðcompany€B€in€completing€the€project.€€TheÐ %8% Ðappliances€normally€bear€the€manufacturerððsÐ ì% & Ðname€and€trademark.Ð Ä&è ' ÐÌ€A€may€comply€with€Yððs€selection€of€B,€becauseÐ t(˜") ÐYððs€unilateral€and€specific€selection€is€of€goodsÐ L)p#* Ðidentifiable€as€to€source€or€origin€in€the€normalÐ $*H$+ Ðcourse€of€business€at€the€time€of€their€entry€intoÐ ü* %, ÐY.Ð Ô+ø%- ÐÐ ¬,Ð&. Ðà ® à(ii)€€Same€as€(i),€except€that€Y€directs€A€to€useÐ Ü. Ðlumber€manufactured€only€by€U.S.€company€C.€Ð ´Ø/ ÐIn€the€normal€course€of€business,€C€neitherÐ Œ°0 Ðstamps€its€name€on€the€lumber€nor€identifies€itselfÐ dˆ1 Ðas€the€manufacturer€on€the€packaging.€€InÐ < `2 Ðaddition,€normal€export€packaging€does€notÐ  83 Ðidentify€the€manufacturer.Ð ì 4 ÐÌA€may€not€comply€with€Yððs€selection,€because€theÐ œ À6 Ðgoods€selected€are€not€identifiable€by€source€orÐ t ˜7 Ðorigin€in€the€normal€course€of€business€at€the€timeÐ Lp8 Ðof€their€entry€into€Y.Ð $H 9 ÐÌà ® à(iii)€€B,€a€U.S.€contractor€who€is€a€bona€fideÐ Ôø ; Ðresident€of€boycotting€country€Y,€is€engaged€inÐ ¬Ð < Ðbuilding€roads.€€B€retains€the€services€of€A,€a€U.S.Ð „¨ = Ðengineering€firm,€to€assist€it€in€procuringÐ \€ > Ðconstruction€equipment.€€B€directs€A€to€purchaseÐ 4X? Ðroad€graders€only€from€manufacturer€C€becauseÐ  0@ Ðother€road€grader€manufacturers€which€A€mightÐ äA Ðuse€are€blacklisted.€€Cððs€road€graders€normallyÐ ¼àB Ðbear€Cððs€insignia.Ð ”¸C ÐÌA€may€comply€with€Bððs€selection€of€C,€becauseÐ DhE Ðthe€goods€selected€are€identifiable€by€source€orÐ @F Ðorigin€in€the€normal€course€of€business€at€the€timeÐ ôG Ðof€their€entry€into€Y.Ð ÌðH ÐÌà ® à(iv)€€A,€a€U.S.€company,€manufacturesÐ | J Ðcomputer-operated€machine€tools.€€The€computersÐ TxK Ðare€mounted€on€a€separate€bracket€on€the€side€ofÐ ,PL Ðthe€equipment€and€are€readily€identifiable€byÐ  (M Ðbrand€name€imprinted€on€the€equipment.€€ThereÐ Ü N Ðare€five€or€six€U.S.€manufacturers€of€suchÐ ´!ØO Ðcomputers€which€will€function€interchangeably€toÐ Œ"°P Ðoperate€the€machine€tools€manufactured€by€A.€B,Ð d#ˆQ Ða€resident€of€boycotting€country€Y,€contracts€toÐ <$`R Ðbuy€the€machine€tools€manufactured€by€A€on€theÐ %8S Ðcondition€that€A€incorporate,€as€the€computerÐ ì% T Ðdrive,€a€computer€manufactured€by€U.S.€companyÐ Ä&è U ÐC.€€Bððs€designation€of€C€is€made€to€avoid€boycottÐ œ'À!V Ðproblems€which€could€be€caused€if€computersÐ t(˜"W Ðmanufactured€by€some€other€company€were€used.Ð L)p#X ÐÌA€may€comply€with€Bððs€designation€of€C,€becauseÐ ü* %Z Ðthe€goods€selected€are€identifiable€by€source€orÐ Ô+ø%[ Ðorigin€in€the€normal€course€of€business€at€the€timeÐ ¬,Ð&\ Ðof€their€entry€into€Y.Ð Ü ÐÌà F à(v)€€A,€a€U.S.€wholesaler€of€electronicÐ Œ° Ðequipment,€receives€an€order€from€B,€a€U.S.Ð dˆ Ðmanufacturer€of€radio€equipment,€who€is€a€bonaÐ < ` Ðfide€resident€of€boycotting€country€Y.€€B€orders€aÐ  8 Ðvariety€of€electrical€components€and€specifies€thatÐ ì  Ðall€transistors€must€be€purchased€from€companyÐ Ä è ÐC,€which€is€not€blacklisted€by€Y.€€The€transistorsÐ œ À Ðrequested€by€B€do€not€normally€bear€the€name€ofÐ t ˜  Ðthe€manufacturer;€however,€they€are€typicallyÐ Lp  Ðshipped€in€cartons,€and€Cððs€name€and€logo€appearÐ $H  Ðon€the€cartons.Ð ü  ÐÌA€may€comply€with€Bððs€selection,€because€theÐ ¬Ð  Ðgoods€selected€by€B€are€identifiable€as€to€sourceÐ „¨  Ðor€origin€in€the€normal€course€of€business€at€theÐ \€  Ðtime€of€their€entry€into€Y€by€virtue€of€theÐ 4X Ðcontainers€or€packaging€used.Ð  0 ÐÌà F à(vi)€€A,€a€U.S.€computer€manufacturer,€receivesÐ ¼à Ðan€order€for€a€computer€from€B,€a€university€inÐ ”¸ Ðboycotting€country€Y.€€B€specifies€that€certainÐ l Ðintegrated€circuits€incorporated€in€the€computerÐ Dh Ðmust€be€supplied€by€U.S.€electronics€company€C.€Ð @ ЀThese€circuits€are€incorporated€into€the€computerÐ ô Ðand€are€not€visible€without€disassembling€theÐ Ìð Ðcomputer.Ð ¤È ÐÌA€may€not€comply€or€agree€to€comply€with€BððsÐ Tx Ðspecific€selection€of€these€components,€becauseÐ ,P Ðthey€are€not€identifiable€as€to€their€source€orÐ  ( Ðorigin€in€the€normal€course€of€business€at€the€timeÐ Ü   Ðof€their€entry€into€Y.Ð ´!Ø! ÐÌà F à(vii)€€A,€a€U.S.€clothing€manufacturer,€receivesÐ d#ˆ# Ðan€order€for€shirts€from€B,€a€retailer€resident€inÐ <$`$ Ðboycotting€country€Y.€€B€specifies€that€the€shirtsÐ %8% Ðare€to€be€manufactured€from€cotton€produced€byÐ ì% & ÐU.S.€farming€cooperative€C.€€Such€shirts€will€notÐ Ä&è ' Ðidentify€C€or€the€source€of€the€cotton.Ð œ'À!( ÐÌA€may€not€comply€or€agree€to€comply€with€BððsÐ L)p#* Ðdesignation,€because€the€cotton€is€not€identifiableÐ $*H$+ Ðas€to€source€or€origin€in€the€normal€course€ofÐ ü* %, Ðbusiness€at€the€time€of€entry€into€Y.Ð Ô+ø%- ÐÐ ¬,Ð&. Ðà ® à(viii)€€A,€a€U.S.€contractor,€is€retained€by€B,€aÐ Ü. Ðconstruction€firm€located€in€and€wholly-owned€byÐ ´Ø/ Ðboycotting€country€Y,€to€assist€B€in€procuringÐ Œ°0 Ðconstruction€materials.€€B€directs€A€to€purchase€aÐ dˆ1 Ðrange€of€materials,€including€hardware,€tools,€andÐ < `2 Ðtrucks,€all€of€which€bear€the€name€of€theÐ  83 Ðmanufacturer€stamped€on€the€item.€€In€addition,€BÐ ì 4 Ðdirects€A€to€purchase€steel€beams€manufacturedÐ Ä è5 Ðby€U.S.€company€C.€€The€name€of€manufacturer€CÐ œ À6 Ðnormally€does€not€appear€on€the€steel€itself€or€onÐ t ˜7 Ðits€export€packaging.Ð Lp8 ÐÌA€may€comply€with€Bððs€selection€of€theÐ ü : Ðhardware,€tools,€and€trucks,€because€they€areÐ Ôø ; Ðidentifiable€as€to€source€or€origin€in€the€normalÐ ¬Ð < Ðcourse€of€business€at€the€time€of€entry€into€Y.€€AÐ „¨ = Ðmay€not€comply€with€Bððs€selection€of€steelÐ \€ > Ðbeams,€because€the€goods€are€not€identifiable€asÐ 4X? Ðto€source€or€origin€by€trade€name,€trademark,Ð  0@ Ðuniqueness€or€packaging€at€the€time€of€their€entryÐ äA Ðinto€Y.Ð ¼àB ÐÌà@::. àEXAMPLE€OF€DISCRIMINATION€ONˆÐ lD Ðà@##, àBASIS€OF€RACE,€RELIGION,€SEX,€ORˆÐ DhE Ðà@ôô5 àNATIONAL€ORIGINˆÐ @F ÐÌà ® à(i)€€A,€a€U.S.€paper€manufacturer,€is€asked€byÐ ÌðH Ðboycotting€country€Y€to€ship€goods€to€Y€on€U.S.Ð ¤ÈI Ðvessel€B.€€Y€states€that€the€reason€for€its€choice€ofÐ | J ÐB€is€that,€unlike€U.S.€vessel€C,€B€is€not€owned€byÐ TxK Ðpersons€of€a€particular€faith.Ð ,PL ÐÌA€may€not€comply€or€agree€to€comply€with€YððsÐ Ü N Ðrequest,€because€A€has€reason€to€know€that€theÐ ´!ØO Ðpurpose€of€the€selection€is€to€effect€religiousÐ Œ"°P Ðdiscrimination€against€a€United€States€person.Ð d#ˆQ ÐÓ  ÓÔ‡(&Ø{%%%&rfÔÌ(e)€€òòShipment€and€transshipment€of€exportsÐ %6S Ðpursuant€to€a€boycotting€countryððsÐ è% T ÐrequirementsóóÔ#†%&rf%%(&Ø{ôÆ#ÔÐ ¾&â U ÐÓèÆÓÌÓ  ÓCOMPLIANCE€WITH€A€BOYCOTTINGÐ l("W ÐCOUN‚TRYððS€REQUIREMENTSÐ D)h#X ÐREGARDING€SHIPMENT€AND€TRANSƒÐ *@$Y ÐSHIPMENT€OF€EXPORTSÐ ô*%Z ÐÓéÇÓÌÔ‡©&¡z%%%&rfÔ(1)€Ô#†%&rf%%©&¡zÁÈ#Ô€A€United€States€person€may€comply€or€agreeÐ ¤,È&\ Ðto€comply€with€the€export€requirements€of€aÐ Ü Ðboycotting€country€with€respect€to€shipments€orÐ ´Ø Ðtransshipments€of€exports€to:Ð Œ° ÐÌà F à(i)€€A€boycotted€country;Ð < ` ÐÌà F à(ii)€€Any€business€concern€of€a€boycottedÐ ì  Ðcountry;Ð Ä è ÐÌà F à(iii)€€Any€business€concern€organized€under€theÐ t ˜  Ðlaws€of€a€boycotted€country;€orÐ Lp  ÐÌà F à(iv)€€Any€national€or€resident€of€a€boycottedÐ ü  Ðcountry.Ð Ôø  ÐÌÔ‡ª&¡z%%%&rfÔ(2)€Ô#†%&rf%%ª&¡z”Ë#Ô€This€exception€permits€compliance€withÐ „¨  Ðrestrictions€which€a€boycotting€country€may€placeÐ `„  Ðon€direct€exports€to€a€boycotted€country;€onÐ 8\ Ðindirect€exports€to€a€boycotted€country€(i.e.,€thoseÐ 4 Ðthat€pass€via€third€parties);€and€on€exports€toÐ è  Ðresidents,€nationals,€or€business€concerns€of,€orÐ Àä Ðorganized€under€the€laws€of,€a€boycotted€country,Ð ˜¼ Ðincluding€those€located€in€third€countries.Ð p” ÐÌÔ‡«&¡z%%%&rfÔ(3)€Ô#†%&rf%%«&¡z÷Í#Ô€This€exception€also€permits€compliance€withÐ  D Ðrestrictions€which€a€boycotting€country€may€placeÐ ü  Ðon€the€route€of€export€shipments€when€theÐ Ôø Ðrestrictions€are€reasonably€related€to€preventingÐ ¬Ð Ðthe€export€shipments€from€coming€into€contactÐ „¨ Ðwith€or€under€the€jurisdiction€of€the€boycottedÐ \€ Ðcountry.€€This€exception€applies€whether€aÐ 4X Ðboycotting€coun‚try€or€the€vendor€of€the€shipment:Ð  0 ÐÌà F à(i)€€Explicitly€states€that€the€shipment€shouldÐ ¼!à! Ðnot€pass€through€the€boycotted€country€enroute€toÐ ”"¸" Ðits€final€destination;€orÐ l## ÐÌà F à(ii)€€Affirmatively€describes€a€route€of€shipmentÐ %@% Ðthat€does€not€include€the€boycotted€country.Ð ô% & ÐÌÔ‡¬&¡z%%%&rfÔ(4)€Ô#†%&rf%%¬&¡z®Ñ#Ô€A€United€States€person€may€not,€under€thisÐ ¤'È!( Ðexception,€refuse€on€an€across-the-board€basis€toÐ €(¤") Ðdo€business€with€a€boycotted€country€or€a€nationalÐ X)|#* Ðor€resident€of€a€boycotted€country.Ð 0*T$+ Ðà F àà Ü àÌà@¸ ¸ ¸ àˆÌÐ ¸,Ü&. Ðà ® àà D àà Ú àà p àEXAMPLES€OF€COMPLIANCEÐ Ü. Ðà@JJ/ àWITH€A€BOY‚COTTING€COUNTRYððSˆÐ ´Ø/ Ðà@LL- àREQUIRE‚MENTS€REGARDING€SHIPMENTˆÐ Œ°0 Ðà@WW/ àOR€TRANSSHIPMENT€OF€EXPORTSˆÐ dˆ1 ÐÌThe€following€examples€are€intended€to€giveÐ  83 Ðguidance€in€determining€the€circumstances€inÐ ì 4 Ðwhich€compliance€with€the€export€requirementsÐ Ä è5 Ðof€a€boycotting€country€is€permissible.€€They€areÐ œ À6 Ðillustrative,€not€comprehensive.Ð t ˜7 ÐÌà ® à(i)€€A,€a€U.S.€petroleum€company,€exportsÐ $H 9 Ðpetroleum€products€to€20€countries,€including€theÐ ü : ÐUnited€States,€from€boycotting€country€Y.€Ð Ôø ; ÐCountry€Yððs€export€regulations€require€thatÐ ¬Ð < Ðproducts€not€be€exported€from€Y€to€boycottedÐ „¨ = Ðcountry€X.Ð \€ > ÐÌA€may€agree€to€and€comply€with€Yððs€regulationsÐ  0@ Ðwith€respect€to€the€export€of€goods€from€Y€to€X.Ð äA ÐÌà ® à(ii)€€Same€as€(i),€except€that€Yððs€exportÐ ”¸C Ðregulations€require€that€goods€not€be€exportedÐ lD Ðfrom€boycotting€country€Y€to€any€businessÐ DhE Ðconcern€organized€under€the€laws€of€boycottedÐ @F Ðcountry€X.Ð ôG ÐÌA€may€agree€to€and€comply€with€Yððs€regulationsÐ ¤ÈI Ðwith€respect€to€the€export€of€goods€from€Y€to€aÐ | J Ðbusiness€concern€organized€under€the€laws€of€X,Ð TxK Ðeven€if€such€concern€is€located€in€a€country€notÐ ,PL Ðinvolved€in€Yððs€boycott€of€X.Ð  (M ÐÌà ® à(iii)€€B,€the€operator€of€a€storage€facility€inÐ ´!ØO Ðcoun‚try€M,€contracts€with€A,€a€U.S.€carrier,€forÐ Œ"°P Ðthe€shipment€of€certain€goods€manufactured€inÐ d#ˆQ Ðboycotting€country€Y.€€Aððs€contract€with€BÐ <$`R Ðcontains€a€provision€stating€that€the€goods€to€beÐ %8S Ðtrans‚ported€may€not€be€shipped€or€transshipped€toÐ ì% T Ðboycotted€country€X.€€B€informs€A€that€thisÐ Ä&è U Ðprovision€is€a€requirement€of€C,€the€manufacturerÐ œ'À!V Ðof€goods€who€is€a€resident€of€boycotting€countryÐ t(˜"W ÐY.€€Country€M€is€not€boycotted€by€Y.Ð L)p#X ÐÌA€may€agree€to€and€comply€with€this€provision,Ð ü* %Z Ðbecause€such€a€provision€is€required€by€the€exportÐ Ô+ø%[ Ðregulations€of€boycotting€country€Y€in€order€toÐ ¬,Ð&\ Ðprevent€shipment€of€Y-origin€goods€to€a€countryÐ Ü Ðboycotted€by€Y.Ð ´Ø ÐÌà F à(iv)€€A,€a€U.S.€petroleum€refiner€located€in€theÐ dˆ ÐUnited€States,€purchases€crude€oil€fromÐ < ` Ðboycotting€country€Y.€€A€has€a€branch€operationÐ  8 Ðin€boycotted€country€X.€Y€requires,€as€a€conditionÐ ì  Ðof€sale,€that€A€agree€not€to€ship€or€transship€theÐ Ä è Ðcrude€oil€or€products€refined€in€Y€to€Aððs€branch€inÐ œ À ÐX.Ð t ˜  ÐÌA€may€agree€to€and€comply€with€theseÐ $H  Ðrequirements,€because€they€are€exportÐ ü  Ðrequirements€of€Y€designed€to€prevent€Y-originÐ Ôø  Ðproducts€from€being€shipped€to€a€boycottedÐ ¬Ð  Ðcountry.Ð „¨  Ðà@¸ ¸ ¸ àˆÌà F à(v)€€A,€a€U.S.€company,€has€a€petrochemicalÐ 4X Ðplant€in€boycotting€country€Y.€€As€a€condition€ofÐ  0 Ðsecuring€an€export€license€from€Y,€A€must€agreeÐ ä Ðthat€it€will€not€ship€or€permit€transshipment€ofÐ ¼à Ðany€of€its€output€from€the€plant€in€Y€to€anyÐ ”¸ Ðcompanies€which€Y€lists€as€being€owned€byÐ l Ðnationals€of€boycotted€country€X.Ð Dh ÐÌA€may€agree€to€this€condition,€because€it€is€aÐ ô Ðrestriction€designed€to€prevent€Y-origin€productsÐ Ìð Ðfrom€being€exported€to€a€business€concern€ofÐ ¤È Ðboycotted€country€X€or€to€nationals€of€boycottedÐ |  Ðcountry€X.Ð Tx ÐÌà F à(vi)€€Same€as€(v),€except€that€the€conditionÐ  ( Ðimposed€on€A€is€that€Y-origin€goods€may€not€beÐ Ü   Ðshipped€or€permitted€to€be€transshipped€to€anyÐ ´!Ø! Ðcompanies€which€Y€lists€as€being€owned€byÐ Œ"°" Ðpersons€whose€national€origin€is€X.Ð d#ˆ# ÐÌA€may€not€agree€to€this€condition,€because€it€is€aÐ %8% Ðrestriction€designed€to€prevent€Y-origin€goodsÐ ì% & Ðfrom€being€exported€to€persons€of€a€particularÐ Ä&è ' Ðnational€origin€rather€than€to€residents€orÐ œ'À!( Ðnationals€of€a€particular€boycotted€country.Ð t(˜") ÐÌà F à(vii)€€A,€a€U.S.€petroleum€company,€exportsÐ $*H$+ Ðpetroleum€products€to€20€countries,€including€theÐ ü* %, ÐUnited€States,€from€boycotting€country€Y.€YÐ Ô+ø%- Ðrequires,€as€a€condition€of€sale,€that€A€not€ship€theÐ ¬,Ð&. Ðproducts€to€be€exported€from€Y€to€or€throughÐ Ü. Ðboycotted€country€X.Ð ´Ø/ ÐÌA€may€agree€to€and€comply€with€this€requirementÐ dˆ1 Ðbecause€it€is€an€export€requirement€of€Y€designedÐ < `2 Ðto€prevent€Y-origin€products€from€coming€intoÐ  83 Ðcontact€with€or€under€the€jurisdiction€of€aÐ ì 4 Ðboycotted€country.Ð Ä è5 ÐÌà ® à(viii)€€Same€as€(vii),€except€that€boycottingÐ t ˜7 Ðcountry€Yððs€export€regulations€require€thatÐ Lp8 Ðproducts€to€be€exported€from€Y€not€pass€throughÐ $H 9 Ða€port€of€boycotted€country€X.Ð ü : ÐÌA€may€agree€to€and€comply€with€Yððs€regulationsÐ ¬Ð < Ðprohibiting€Y-origin€exports€from€passing€throughÐ „¨ = Ða€port€at€boycotted€country€X,€because€they€areÐ \€ > Ðexport€requirements€of€Y€designed€to€preventÐ 4X? ÐY-origin€products€from€coming€into€contact€withÐ  0@ Ðor€under€the€jurisdiction€of€a€boycotted€country.Ð äA ÐÌà ® à(ix)€€Same€as€(vii),€except€that€Yððs€exportÐ ”¸C Ðregulations€require€that€A€not€transship€theÐ lD Ðexported€products€ð ðin€or€atðð€boycotted€country€X.Ð DhE ÐÌA€may€agree€to€and€comply€with€Yððs€regulationsÐ ôG Ðwith€respect€to€the€transshipment€of€goods€ð ðin€orÐ ÌðH Ðatðð€X,€because€they€are€export€requirements€of€YÐ ¤ÈI Ðdesigned€to€prevent€Y-origin€products€fromÐ | J Ðcoming€into€contact€with€or€under€the€jurisdictionÐ TxK Ðof€a€boycotted€country.Ð ,PL ÐÌÓ  ÓÔ‡,&Ø{%%%&rfÔÔ  Ô(f)€€òòImmigration,€passport,€visa,€or€employmentÐ Ü N Ðrequirements€of€a€boycotting€countryóóÔ#†%&rf%%,&Ø{Xî#ÔÐ ²!ÖO ÐÓLîÓÌÓ  Óà@@¹¹ ¸ àCOMPLIANCE€WITH€IMMIGRATION,Ð `#„Q Ðà@@­­ ¸ àPASS‚PORT,€VISA,€Ð 8$\R ÐOR€EMPLOYMENT€à@@ÞÞ¸ àREQUIREMENTS€Ð %4S ÐOF€A€BOYCOTTING€à@@ý ý ¸ àCOUN‚TRYÐ è% T ÐÓ9ïÓÌÔ‡®&¡z%%%&rfÔ(1)€Ô#†%&rf%%®&¡zRð#Ô€A€United€States€individual€may€comply€orÐ ˜'¼!V Ðagree€to€comply€with€the€immigration,€passport,Ð t(˜"W Ðvisa,€or€employment€requirements€of€a€boycottingÐ L)p#X Ðcountry,€and€with€requests€for€information€from€aÐ $*H$Y Ðboycotting€country€made€to€ascertain€whetherÐ ü* %Z Ðsuch€individual€meets€requirements€forÐ Ô+ø%[ Ðemployment€within€the€boycotting€country,Ð ¬,Ð&\ Ðprovided€that€he€furnishes€information€only€aboutÐ Ü Ðhimself€or€a€member€of€his€family,€and€not€aboutÐ ´Ø Ðany€other€United€States€individual,€including€hisÐ Œ° Ðemployees,€employers,€or€co-workers.Ð dˆ ÐÌÔ‡¯&¡z%%%&rfÔ(2)€Ô#†%&rf%%¯&¡zkó#Ô€For€purposes€of€this€section,€a€ð ðUnited€StatesÐ  8 Ðindividualðð€means€a€person€who€is€a€resident€orÐ ð  Ðnational€of€the€United€States.€€ð ðFamilyðð€meansÐ È ì Ðimmediate€family€members,€including€parents,Ð   Ä Ðsiblings,€spouse,€children,€and€other€dependentsÐ x œ  Ðliving€in€the€individualððs€home.Ð Pt  ÐÌÔ‡°&¡z%%%&rfÔ(3)€Ô#†%&rf%%°&¡zGõ#Ô€A€United€States€person€may€not€furnishÐ $  Ðinformation€about€its€employees€or€executives,Ð Ü  Ðbut€may€allow€any€individual€to€respond€on€hisÐ ´Ø  Ðown€to€any€request€for€information€relating€toÐ Œ°  Ðimmigration,€passport,€visa,€or€employmentÐ dˆ  Ðrequirements.€€A€United€States€person€may€alsoÐ <` Ðperform€any€ministerial€acts€to€expediteÐ 8 Ðprocessing€of€applications€by€individuals.€€TheseÐ ì Ðinclude€informing€employees€of€boycottingÐ Äè Ðcountry€visa€requirements€at€an€appropriate€time;Ð œÀ Ðtyping,€trans‚lation,€messenger€and€similarÐ t˜ Ðservices;€and€assisting€in€or€arranging€for€theÐ Lp Ðexpeditious€processing€of€applications.€€All€suchÐ $H Ðactions€must€be€undertaken€on€aÐ ü  Ðnon-discriminatory€basis.Ð Ôø ÐÌÔ‡±&¡z%%%&rfÔ(4)€Ô#†%&rf%%±&¡zHù#Ô€A€United€States€person€may€proceed€with€aÐ „¨ Ðproject€in€a€boycotting€country€even€if€certain€ofÐ `„ Ðits€employees€or€other€prospective€participants€inÐ 8\ Ða€transaction€are€denied€entry€for€boycott€reasons.€Ð  4 ÐBut€no€employees€or€other€participants€may€beÐ è   Ðselected€in€advance€in€a€manner€designed€toÐ À!ä! Ðcomply€with€a€boycott.Ð ˜"¼" ÐÌà@ØØ ¸ àEXAMPLES€OF€COMPLIANCE€WITHˆÐ H$l$ Ðà@›› ¸ àIMMIGRATION,€PASSPORT,€VISA,€ORˆÐ  %D% Ðà@{{ ¸ àEMPLOYMENT€REQUIREMENTS€OF€AˆÐ ø% & Ðà@““¸ àBOY‚COTTING€COUNTRYˆÐ Ð&ô ' ÐÌThe€following€examples€are€intended€to€giveÐ €(¤") Ðguidance€in€determining€the€circumstances€inÐ X)|#* Ðwhich€compliance€with€immigration,€passport,Ð 0*T$+ Ðvisa,€or€employment€requirements€is€permissible.€Ð +,%, ÐThey€are€illustrative,€not€comprehensive.Ð à+&- ÐÐ ¸,Ü&. Ðà ® àðð(i)€Ô‡A&rf%%%&rfÔA,€a€U.S.€individual€employed€by€B,€a€U.S.Ð Ü. Ðmanufacturer€of€sporting€goods€with€a€plant€inÐ ´Ø/ Ðboycotting€country€Y,€wishes€to€obtain€a€workÐ Œ°0 Ðvisa€so€that€he€may€be€assigned€to€the€plant€in€Y.Ô#†%&rf%%A&rfËý#ÔÐ dˆ1 ÐCountry€Yððs€immigration€laws€specify€thatÐ < `2 Ðanyone€wishing€to€enter€the€country€or€obtain€aÐ  83 Ðvisa€to€work€in€the€country€must€supplyÐ ì 4 Ðinformation€about€his€religion.€€This€informationÐ Ä è5 Ðis€required€for€boycott€purposes.Ð œ À6 ÐÌA€may€furnish€such€information,€because€it€isÐ Lp8 Ðrequired€by€Yððs€immigration€laws.Ð $H 9 ÐÌà ® à(ii)€€Same€as€(i),€except€that€A€is€asked€toÐ Ôø ; Ðsupply€such€information€about€other€employees€ofÐ ¬Ð < ÐB.Ð „¨ = ÐÌA€may€not€supply€this€information,€because€it€isÐ 4X? Ðnot€information€about€himself€or€his€family.Ð  0@ Ðà ® àà D àà Ú àà p àà Ð àÌ(iii)€€A,€a€U.S.€building€contractor,€has€been€Ð ¼àB Ðawarded€a€construction€contract€to€be€performedÐ ”¸C Ðin€boycotting€country€Y.€€Yððs€immigration€lawsÐ lD Ðrequire€that€individuals€applying€for€visas€mustÐ DhE Ðindicate€race,€religion,€and€place€of€birth.€€TheÐ @F Ðinformation€is€sought€for€boycott€purposes.€€ToÐ ôG Ðavoid€repeated€rejections€of€applications€for€workÐ ÌðH Ðvisas€by€Aððs€employees,€A€desires€to€furnish€toÐ ¤ÈI Ðcountry€Y€a€list€of€its€prospective€and€currentÐ | J Ðemployees€and€required€information€about€eachÐ TxK Ðso€that€Y€can€make€an€initial€screening.Ð ,PL ÐÌA€may€not€furnish€such€a€list,€because€A€would€beÐ Ü N Ðfurnishing€information€about€the€race,€religion,Ð ´!ØO Ðand€national€origin€of€its€employees.Ð Œ"°P ÐÌà ® à(iv)€€Same€as€(iii),€except€that€A€selects€forÐ <$`R Ðwork€on€the€project€those€of€its€current€employeesÐ %8S Ðwhom€it€believes€will€be€granted€work€visas€fromÐ ì% T Ðboycotting€country€Y.Ð Ä&è U ÐÌA€may€not€make€a€selection€from€among€itsÐ t(˜"W Ðemployees€in€a€manner€designed€to€comply€withÐ L)p#X Ðthe€boycott-based€visa€requirements€of€Y,€butÐ $*H$Y Ðmust€allow€all€eligible€employees€to€apply€forÐ ü* %Z Ðvisas.€€A€may€later€substitute€an€employee€whoÐ Ô+ø%[ Ðobtains€the€necessary€visa€for€one€who€has€had€hisÐ ¬,Ð&\ Ðapplication€rejected.Ð Ü ÐÌà F à(v)€€Same€as€(iii),€except€that€A€selectsÐ Œ° Ðemployees€for€the€project€and€then€allows€eachÐ dˆ Ðemployee€individually€to€apply€for€his€own€visa.€Ð < ` ÐTwo€employeesðð€applications€are€rejected,€and€AÐ  8 Ðthen€substitutes€two€other€employees€who,€in€turn,Ð ì  Ðsubmit€their€own€visa€applications.Ð Ä è ÐÌA€may€take€such€action,€because€in€so€doing€A€isÐ t ˜  Ðnot€acting€in€contravention€of€any€prohibition€ofÐ Lp  Ðthis€part.Ð $H  ÐÌà F à(vi)€€Same€as€(v),€except€that€A€arranges€for€theÐ Ôø  Ðtranslation,€typing€and€processing€of€itsÐ ¬Ð  Ðemployeesðð€applications,€and€transmits€all€theÐ „¨  Ðapplications€to€the€consulate€of€boycottingÐ \€  Ðcountry€Y.Ð 4X ÐÌA€may€take€such€ministerial€actions,€because€in€soÐ ä Ðdoing€A€is€not€itself€furnishing€information€withÐ ¼à Ðrespect€to€race,€religion,€sex,€or€national€origin,Ð ”¸ Ðbut€is€merely€transmitting€information€furnishedÐ l Ðby€its€individual€employees.Ð Dh ÐÌà F à(vii)€€A,€a€U.S.€contractor,€selects€U.S.Ð ô Ðsubcontractor€B€to€perform€certain€engineeringÐ Ìð Ðservices€in€connection€with€Aððs€project€inÐ ¤È Ðboycotting€country€Y.€€The€work€visa€applicationÐ |  Ðsubmitted€by€the€employee€whom€B€has€proposedÐ Tx Ðas€chief€engineer€of€this€project€is€rejected€by€YÐ ,P Ðbecause€his€national€origin€is€of€boycottedÐ  ( Ðcountry€X.€€Subcontractor€B€thereuponÐ Ü   Ðwithdraws.Ð ´!Ø! ÐÌA€may€continue€with€the€project€and€selectÐ d#ˆ# Ðanother€subcontractor,€because€A€is€not€acting€inÐ <$`$ Ðcontravention€of€any€prohibition€of€this€part.Ð %8% ÐÌÓ  ÓÔ‡-&Ø{%%%&rfÔ(g)€€òòCompliance€with€local€lawóóÔ#†%&rf%%-&Ø{‰#ÔÐ Ä&è ' ÐÓ}ÓÌÔ‡³&¡z%%%&rfÔ€(1)€Ô#†%&rf%%³&¡z#Ô€This€exception€contains€two€parts.€€The€firstÐ r(–") Ðcovers€compliance€with€local€law€with€respect€toÐ N)r#* Ða€United€States€personððs€activities€exclusivelyÐ &*J$+ Ðwithin€a€foreign€country;€the€second€coversÐ þ*"%, Ðcompliance€with€local€import€laws€by€UnitedÐ Ö+ú%- ÐStates€persons€resident€in€a€foreign€country.€Ð ®,Ò&. ÐUnder€both€parts€of€this€exception,€local€laws€areÐ Ü. Ðlaws€of€the€host€country,€whether€derived€fromÐ ´Ø/ Ðstatutes,€regulations,€decrees,€or€other€officialÐ Œ°0 Ðsources€having€the€effect€of€law€in€the€hostÐ dˆ1 Ðcountry.€€This€exception€is€not€available€forÐ < `2 Ðcompliance€with€presumed€policies€orÐ  83 Ðunderstandings€of€policies€unless€those€policiesÐ ì 4 Ðare€reflected€in€official€€sources€having€the€effectÐ Ä è5 Ðof€law.Ð œ À6 ÐÌÔ‡´&¡z%%%&rfÔ(2)€Ô#†%&rf%%´&¡z&#Ô€Both€parts€of€this€exception€apply€only€toÐ Lp8 ÐUnited€States€persons€resident€in€a€foreignÐ (L 9 Ðcountry.€€For€purposes€of€this€exception,€a€UnitedÐ $ : ÐStates€person€will€be€considered€to€be€a€residentÐ Øü ; Ðof€a€foreign€country€only€if€he€is€a€bona€fideÐ °Ô < Ðresident.€€A€United€States€person€may€be€a€bonaÐ ˆ¬ = Ðfide€resident€of€a€foreign€country€even€if€suchÐ `„ > Ðpersonððs€residency€is€temporary.Ð 8\? ÐÌò ò(3)(i)ó ó€€Factors€that€will€be€considered€inÐ è A Ðdetermining€whether€a€United€States€person€is€aÐ ÄèB Ðbona€fide€resident€of€a€foreign€country€include:Ð œÀC ÐÌà ® àà D à(A)€€Physical€presence€in€the€country;Ð LpE ÐÌà ® àà D à(B)€€Whether€residence€is€needed€forÐ ü G Ðlegitimate€business€reasons;Ð ÔøH ÐÌà ® àà D à(C)€€Continuity€of€the€residency;Ð „¨J ÐÌà ® àà D à(D)€€Intent€to€maintain€the€residency;Ð 4XL ÐÌà ® àà D à(E)€€Prior€residence€in€the€country;Ð ä N ÐÌà ® àà D à(F)€€Size€and€nature€of€presence€in€theÐ ”"¸P Ðcountry;Ð l#Q ÐÌà ® àà D à(G)€€Whether€the€person€is€registered€to€doÐ %@S Ðbusiness€or€incorporated€in€the€country;Ð ô% T ÐÌà ® àà D à(H)€€Whether€the€person€has€a€valid€workÐ ¤'È!V Ðvisa;€andÐ |( "W ÐÌà ® àà D à(I)€€Whether€the€person€has€a€similar€presenceÐ ,*P$Y Ðin€both€boycotting€and€non-boycotting€foreignÐ +(%Z Ðcountries€in€connection€with€similar€businessÐ Ü+&[ Ðactivities.Ð ´,Ø&\ Їà F à(ii)€€No€one€of€the€factors€in€paragraph€(g)(3)€ofÐ Ü Ðthis€section€is€dispositive.€€All€the€circumstancesÐ ´Ø Ðinvolved€will€be€closely€examined€to€ascertainÐ Œ° Ðwhether€there€is,€in€fact,€bona€fide€residency.€Ð dˆ ÐResidency€established€solely€for€purposes€ofÐ < ` Ðavoidance€of€the€application€of€this€part,Ð  8 Ðunrelated€to€legitimate€business€needs,€does€notÐ ì  Ðconstitute€bona€fide€residency.Ð Ä è Ðà F àà Ü àà r àÌà@55 ¸ àEXAMPLES€OF€BONA€FIDE€RESIDENCYˆÐ t ˜  ÐÌThe€following€examples€are€intended€to€giveÐ $H  Ðguidance€in€determining€the€circumstances€inÐ ü  Ðwhich€a€United€States€person€may€be€a€bona€fideÐ Ôø  Ðresident€of€a€foreign€country.€€For€purposes€ofÐ ¬Ð  Ðillustration,€each€example€discusses€only€one€orÐ „¨  Ðtwo€factors,€instead€of€all€relevant€factors.€€TheyÐ \€  Ðare€illustrative,€not€comprehensive.Ð 4X ÐÌà F à(i)€€A,€a€U.S.€radio€manufacturer€located€in€theÐ ä ÐUnited€States,€receives€a€tender€to€bid€on€aÐ ¼à Ðcontract€to€supply€radios€for€a€hotel€to€be€built€inÐ ”¸ Ðboycotting€country€Y.€€After€examining€theÐ l Ðproposal,€A€sends€a€bid€from€its€New€York€officeÐ Dh Ðto€Y.Ð @ ÐÌA€is€not€a€resident€of€Y,€because€it€is€notÐ Ìð Ðphysically€present€in€Y.Ð ¤È ÐÌà F à(ii)€€Same€as€(i),€except€that€after€receiving€theÐ Tx Ðtender,€A€sends€its€sales€representative€to€Y.€€AÐ ,P Ðdoes€not€usually€have€sales€representatives€inÐ  ( Ðcountries€when€it€bids€from€the€United€States,€andÐ Ü   Ðthis€particular€personððs€presence€in€Y€is€notÐ ´!Ø! Ðnecessary€to€enable€A€to€make€the€bid.Ð Œ"°" ÐÌA€is€not€a€bona€fide€resident€of€Y,€because€it€hasÐ <$`$ Ðno€legitimate€business€reasons€for€having€its€salesÐ %8% Ðrepresentative€resident€in€Y.Ð ì% & ÐÌà F à(iii)€€A,€a€U.S.€bank,€wishes€to€establish€a€branƒÐ œ'À!( Ðch€office€in€boycotting€country€Y.€€In€pursuit€ofÐ t(˜") Ðthat€objective,€Aððs€personnel€visit€Y€to€make€theÐ L)p#* Ðnecessary€arrangements.€€A€intends€to€establish€aÐ $*H$+ Ðpermanent€branch€office€in€Y€after€the€necessaryÐ ü* %, Ðarrangements€are€made.Ð Ô+ø%- ÐÐ ¬,Ð&. ÐAððs€personnel€in€Y€are€not€bona€fide€residents€ofÐ Ü. ÐY,€because€A€does€not€yet€have€a€permanentÐ ´Ø/ Ðbusiness€operation€in€Y.Ð Œ°0 ÐÌà ® à(iv)€€Same€as€(iii),€except€Aððs€personnel€areÐ < `2 Ðrequired€by€Yððs€laws€to€furnish€certainÐ  83 Ðnon-discriminatory€boycott€information€in€orderÐ ì 4 Ðto€establish€a€branch€in€Y.Ð Ä è5 ÐÌIn€these€limited€circumstances,€Aððs€personnelÐ t ˜7 Ðmay€furnish€the€non-discriminatory€boycottÐ Lp8 Ðinformation€necessary€to€establish€residency€toÐ $H 9 Ðthe€same€extent€a€U.S.€person€who€is€a€bona€fideÐ ü : Ðresident€in€that€country€could.€€If€this€informationÐ Ôø ; Ðcould€not€be€furnished€in€such€limitedÐ ¬Ð < Ðcircumstances,€the€exception€would€be€availableÐ „¨ = Ðonly€to€firms€resident€in€a€boycotting€countryÐ \€ > Ðbefore€January€18,€1978.Ð 4X? ÐÌà ® à(v)€€A,€a€U.S.€construction€company,€receivesÐ äA Ðan€invitation€to€build€a€power€plant€in€boycottingÐ ¼àB Ðcountry€Y.€€After€receipt€of€the€invitation,€AððsÐ ”¸C Ðpersonnel€visit€Y€in€order€to€survey€the€site€andÐ lD Ðmake€necessary€analyses€in€preparation€forÐ DhE Ðsubmitting€a€bid.€€The€invitation€requires€thatÐ @F Ðotherwise€prohibited€boycott€information€beÐ ôG Ðfurnished€with€the€bid.Ð ÌðH ÐÌAððs€personnel€in€Y€are€not€bona€fide€residents€ofÐ | J ÐY,€because€A€has€no€permanent€businessÐ TxK Ðoperation€in€Y.€€Therefore,€Aððs€personnel€may€notÐ ,PL Ðfurnish€the€prohibited€information.Ð  (M ÐÌà ® à(vi)€€Same€as€(v),€except€that€A€is€consideringÐ ´!ØO Ðestablishing€an€office€in€boycotting€country€Y.€Ð Œ"°P ÐAððs€personnel€visit€Y€in€order€to€register€A€to€doÐ d#ˆQ Ðbusiness€in€that€country.€A€intends€to€establishÐ <$`R Ðongoing€construction€operations€in€Y.€€AððsÐ %8S Ðpersonnel€are€required€by€Yððs€laws€to€furnishÐ ì% T Ðcertain€non-discriminatory€boycott€information€inÐ Ä&è U Ðorder€to€register€A€to€do€business€or€incorporate€aÐ œ'À!V Ðsubsidiary€in€Y.Ð t(˜"W ÐÌIn€these€limited€circumstances,€Aððs€personnelÐ $*H$Y Ðmay€furnish€non-discriminatory€boycottÐ ü* %Z Ðinformation€necessary€to€establish€residency€toÐ Ô+ø%[ Ðthe€same€extent€a€U.S.€person€who€is€a€bona€fideÐ ¬,Ð&\ Ðresident€in€that€country€could.€€If€this€informationÐ Ü Ðcould€not€be€furnished€in€such€limitedÐ ´Ø Ðcircumstances,€the€exception€would€be€availableÐ Œ° Ðonly€to€firms€resident€in€a€boycotting€countryÐ dˆ Ðbefore€January€18,€1978.Ð < ` ÐÌà F à(vii)€€A,€a€subsidiary€of€U.S.€oil€company€B,€isÐ ì  Ðlocated€in€boycotting€country€Y.€€A€has€beenÐ Ä è Ðengaged€in€oil€explorations€in€Y€for€a€number€ofÐ œ À Ðyears.Ð t ˜  ÐÌA€is€a€bona€fide€resident€of€Y,€because€of€itsÐ $H  Ðpre-existing€continuous€presence€in€Y€forÐ ü  Ðlegitimate€business€reasons.Ð Ôø  ÐÌà F à(viii)€€Same€as€(vii),€except€that€A€has€just€beenÐ „¨  Ðestablished€in€Y€and€has€not€yet€begun€operations.Ð \€  ÐÌA€is€a€bona€fide€resident€of€Y,€because€it€isÐ  0 Ðpresent€in€Y€for€legitimate€business€reasons€and€itÐ ä Ðintends€to€reside€continuously.Ð ¼à ÐÌà F à(ix)€€U.S.€company€A€is€a€manufacturer€ofÐ l Ðprefabricated€homes.€€A€builds€a€plant€inÐ Dh Ðboycotting€country€Y€for€purposes€of€assemblingÐ @ Ðcomponents€made€by€A€in€the€United€States€andÐ ô Ðshipped€to€Y.Ð Ìð ÐÌAððs€personnel€in€Y€are€bona€fide€residents€of€Y,Ð |  Ðbecause€Aððs€plant€in€Y€is€established€forÐ Tx Ðlegitimate€business€reasons,€and€it€intends€toÐ ,P Ðreside€continuously.Ð  ( ÐÌà F à(x)€€U.S.€company€A€has€its€principal€place€ofÐ ´!Ø! Ðbusiness€in€the€United€States.€€Aððs€sales€agentÐ Œ"°" Ðvisits€boycotting€country€Y€from€time€to€time€forÐ d#ˆ# Ðpurposes€of€soliciting€orders.Ð <$`$ ÐÌAððs€sales€agent€is€not€a€bona€fide€resident€of€Y,Ð ì% & Ðbecause€such€periodic€visits€to€Y€are€insufficientÐ Ä&è ' Ðto€establish€a€bona€fide€residency.Ð œ'À!( ÐÌà F à(xi)€€A,€a€branch€office€of€U.S.€constructionÐ L)p#* Ðcompany€B,€is€located€in€boycotting€country€Y.€Ð $*H$+ ÐThe€branch€office€has€been€in€existence€for€aÐ ü* %, Ðnumber€of€years€and€has€been€performing€variousÐ Ô+ø%- Ðmanagement€services€in€connection€with€BððsÐ ¬,Ð&. Ðconstruction€operations€in€Y.Ð Ü. ÐÌA€is€a€bona€fide€resident€of€Y,€because€of€itsÐ Œ°0 Ðlongstanding€presence€in€Y€and€its€conduct€ofÐ dˆ1 Ðongoing€operations€in€Y.Ð < `2 ÐÌà ® à(xii)€€U.S.€construction€company€A€has€neverÐ ì 4 Ðdone€any€business€in€boycotting€country€Y.€€It€isÐ Ä è5 Ðawarded€a€contract€to€construct€a€hospital€in€Y,Ð œ À6 Ðand€preparatory€to€beginning€construction,€sendsÐ t ˜7 Ðits€personnel€to€Y€to€set€up€operations.Ð Lp8 ÐÌAððs€personnel€are€bona€fide€residents€of€Y,Ð ü : Ðbecause€they€are€present€in€Y€for€the€purposes€ofÐ Ôø ; Ðcarrying€out€Aððs€legitimate€business€purposes;Ð ¬Ð < Ðthey€intend€to€reside€continuously;€and€residencyÐ „¨ = Ðis€necessary€to€conduct€their€business.Ð \€ > ÐÌà ® à(xiii)€€U.S.€company€A€manufactures€furniture.€Ð  0@ ÐAll€its€sales€in€foreign€countries€are€conductedÐ äA Ðfrom€its€offices€in€the€United€States.€€From€timeÐ ¼àB Ðto€time€A€has€considered€opening€sales€officesÐ ”¸C Ðabroad,€but€it€has€concluded€that€it€is€moreÐ lD Ðefficient€to€conduct€sales€operations€from€theÐ DhE ÐUnited€States.€€Shortly€after€the€effective€date€ofÐ @F Ðthis€part,€A€sends€a€sales€representative€toÐ ôG Ðboycotting€country€Y€to€open€an€office€in€andÐ ÌðH Ðsolicit€orders€from€Y.€€It€is€more€costly€to€conductÐ ¤ÈI Ðoperations€from€that€office€than€to€sell€directlyÐ | J Ðfrom€the€United€States,€but€A€believes€that€if€itÐ TxK Ðestablishes€a€residence€in€Y,€it€will€be€in€a€betterÐ ,PL Ðposition€to€avoid€conflicts€with€U.S.€law€in€itsÐ  (M Ðsales€to€Y.Ð Ü N ÐÌAððs€sales€representative€is€not€a€bona€fide€residentÐ Œ"°P Ðof€Y,€because€the€residency€was€established€toÐ d#ˆQ Ðavoid€the€application€of€this€part€and€not€forÐ <$`R Ðlegitimate€business€reasons.Ð %8S ÐÌà ® à(xiv)€€Same€as€(xiii),€except€that€it€is€in€factÐ Ä&è U Ðmore€efficient€to€have€a€sales€office€in€Y.€€In€fact,Ð œ'À!V Ðwithout€a€sales€office€in€Y,€A€would€find€itÐ t(˜"W Ðdifficult€to€explore€business€opportunities€in€Y.€Ð L)p#X ÐA€is€aware,€however,€that€residency€in€Y€wouldÐ $*H$Y Ðpermit€its€sales€representative€to€comply€with€YððsÐ ü* %Z Ðboycott€laws.Ð Ô+ø%[ ÐÐ ¬,Ð&\ ÐAððs€sales€representative€is€a€bona€fide€resident€ofÐ Ü ÐY,€because€A€has€a€legitimate€business€reason€forÐ ´Ø Ðestablishing€a€sales€office€in€Y.Ð Œ° ÐÌà F à(xv)€€U.S.€company€B€is€a€computerÐ < ` Ðmanufacturer.€€B€sells€computers€and€relatedÐ  8 Ðprogramming€services€tailored€to€the€needs€ofÐ ì  Ðindividual€clients.€€Because€of€the€complex€natureÐ Ä è Ðof€the€product,€B€must€have€sales€representativesÐ œ À Ðin€any€country€where€sales€are€made.€€B€has€aÐ t ˜  Ðsales€representative,€A,€in€boycotting€country€Y.€Ð Lp  ÐA€spends€two€months€of€the€year€in€Y,€and€theÐ $H  Ðrest€of€the€year€in€other€countries.€€B€has€aÐ ü  Ðpermanent€sales€office€from€which€A€operatesÐ Ôø  Ðwhile€in€Y,€and€the€sales€office€is€stocked€withÐ ¬Ð  Ðbrochures€and€other€sales€materials.Ð „¨  ÐÌA€is€a€bona€fide€resident€of€Y,€because€hisÐ 4X Ðpresence€in€Y€is€necessary€to€carry€out€BððsÐ  0 Ðlegitimate€business€purposes;€B€maintains€aÐ ä Ðpermanent€office€in€Y;€and€B€intends€to€continueÐ ¼à Ðdoing€business€in€Y€in€the€future.Ð ”¸ ÐÌà F à(xvi)€€A,€a€U.S.€construction€engineeringÐ Dh Ðcompany,€is€engaged€by€B,€a€U.S.€generalÐ @ Ðcontracting€company,€to€provide€services€inÐ ô Ðconnection€with€Bððs€contract€to€construct€aÐ Ìð Ðhospital€complex€in€boycotting€country€Y.€€InÐ ¤È Ðorder€to€perform€those€services,€Aððs€engineers€setÐ |  Ðup€a€temporary€office€in€a€trailer€on€theÐ Tx Ðconstruction€site€in€Y.€€Aððs€work€is€expected€to€beÐ ,P Ðcompleted€within€six€months.Ð  ( ÐÌAððs€personnel€in€Y€are€bona€fide€residents€of€Y,Ð ´!Ø! Ðbecause€Aððs€on-site€office€is€necessary€to€theÐ Œ"°" Ðperformance€of€its€services€for€B,€and€becauseÐ d#ˆ# ÐAððs€personnel€are€continuously€there.Ð <$`$ ÐÌà F à(xvii)€€A,€a€U.S.€company,€sends€one€of€itsÐ ì% & Ðrepresentatives€to€boycotting€country€Y€to€exploreÐ Ä&è ' Ðnew€sales€possibilities€for€its€line€of€transistorÐ œ'À!( Ðradios.€€After€spending€several€weeks€in€Y,€AððsÐ t(˜") Ðrepresentative€rents€a€post€office€box€in€Y,€toÐ L)p#* Ðwhich€all€persons€interested€in€Aððs€products€areÐ $*H$+ Ðdirected€to€make€inquiry.Ð ü* %, ÐÌA€is€not€a€bona€fide€resident€of€Y,€because€rentalÐ ¬,Ð&. Ðof€a€post€office€box€is€not€a€sufficient€presence€inÐ Ü. ÐY€to€constitute€residency.Ð ´Ø/ ÐÌà ® à(xviii)€€A,€a€U.S.€computer€company,€has€aÐ dˆ1 Ðpatent€and€trademark€registered€in€the€UnitedÐ < `2 ÐStates.€€In€order€to€obtain€registration€of€its€patentÐ  83 Ðand€trademark€in€boycotting€country€Y,€A€isÐ ì 4 Ðrequired€to€furnish€certain€non-discriminatoryÐ Ä è5 Ðboycott€information.Ð œ À6 ÐÌA€may€not€furnish€the€information,€because€A€isÐ Lp8 Ðnot€a€bona€fide€resident€of€Y.Ð $H 9 ÐÌÓ  ÓÔ‡.&Ø{%%%&rfÔ(h)€€òòActivities€exclusively€within€Ð Ôø ; Ða€foreign€coun‚tryóóÔ#†%&rf%%.&Ø{ R#ÔÐ ªÎ < ÐÓ”RÓÌÔ‡µ&¡z%%%&rfÔ(1)€Ô#†%&rf%%µ&¡zXS#Ô€Any€United€States€person€who€is€a€bona€fideÐ X| > Ðresident€of€a€foreign€country,€including€aÐ 4X? Ðboycotting€country,€may€comply€or€agree€toÐ  0@ Ðcomply€with€the€laws€of€that€country€with€respectÐ äA Ðto€his€activities€exclusively€within€that€country.€Ð ¼àB ÐThese€activities€include:Ð ”¸C ÐÌà ® à(i)€€Entering€into€contracts€which€provide€thatÐ DhE Ðlocal€law€applies€or€governs,€or€that€the€partiesÐ @F Ðwill€comply€with€such€laws;Ð ôG ÐÌà ® à(ii)€€Employing€residents€of€the€host€country;Ð ¤ÈI ÐÌà ® à(iii)€€Retaining€local€contractors€to€performÐ TxK Ðwork€within€the€host€country;Ð ,PL ÐÌà ® à(iv)€€Purchasing€or€selling€goods€or€servicesÐ Ü N Ðfrom€or€to€residents€of€the€host€country;€andÐ ´!ØO ÐÌà ® à(v)€€Furnishing€information€within€the€hostÐ d#ˆQ Ðcountry.Ð <$`R ÐÌÔ‡¶&¡z%%%&rfÔ(2)€Ô#†%&rf%%¶&¡z­W#Ô€Activities€exclusively€within€the€country€doÐ ì% T Ðnot€include€importing€goods€or€services€fromÐ È&ì U Ðoutside€the€host€country,€and,€therefore,€this€partÐ  'Ä!V Ðof€the€exception€does€not€apply€to€complianceÐ x(œ"W Ðwith€import€laws€in€connection€with€importingÐ P)t#X Ðgoods€or€services.Ð (*L$Y Ðà ® àÌÌà ® àà D àà Ú àÐ °,Ô&\ ÐÓ  Óà@@NN1 àEXAMPLES€OF€PERMISSIBLEÐ Ü ÐCOMPLIANCE€WITH€LOCAL€LAW€WITHÐ ´Ø ÐRESPECT€TO€ACTIVITIES€EXCLUSIVELYÐ Œ° ÐWITHIN€A€FOREIGN€COUNTRYÐ dˆ ÐÓ±YÓÌThe€following€examples€are€intended€to€giveÐ  8 Ðguidance€in€determining€the€circumstances€inÐ ì  Ðwhich€compliance€with€local€law€is€permissible.€Ð Ä è ÐThey€are€illustrative,€not€comprehensive.Ð œ À ÐÌà@vv ¸ àACTIVITIES€EXCLUSIVELY€WITHIN€AˆÐ Lp  Ðà@[[¸ àFOR‚EIGN€COUNTRYˆÐ $H  ÐÌà F à(i)€€U.S.€construction€company€A,€a€bona€fideÐ Ôø  Ðresident€of€boycotting€country€Y,€has€a€contract€toÐ ¬Ð  Ðbuild€a€school€complex€in€Y.€€Pursuant€to€YððsÐ „¨  Ðboycott€laws,€the€contract€requires€A€to€refuse€toÐ \€  Ðpurchase€supplies€from€certain€local€merchants.€Ð 4X ÐWhile€Y€permits€such€merchants€to€operate€withinÐ  0 ÐY,€their€freedom€of€action€in€Y€is€constrainedÐ ä Ðbecause€of€their€relationship€with€boycottedÐ ¼à Ðcountry€X.Ð ”¸ ÐÌA€may€enter€into€the€contract,€because€dealingsÐ Dh Ðwith€local€merchants€are€activities€exclusivelyÐ @ Ðwithin€Y.Ð ô ÐÌà F à(ii)€€A,€a€banking€subsidiary€of€U.S.€bank€B,€isÐ ¤È Ða€bona€fide€resident€of€boycotting€country€Y.€Ð |  ÐFrom€time€to€time,€A€purchases€office€suppliesÐ Tx Ðfrom€the€United€States.Ð ,P ÐÌAððs€purchase€of€office€supplies€is€not€an€activityÐ Ü   Ðexclusively€within€Y,€because€it€involves€theÐ ´!Ø! Ðimport€of€goods€from€abroad.Ð Œ"°" ÐÌà F à(iii)€€A,€a€branch€of€U.S.€bank€B,€is€a€bona€fideÐ <$`$ Ðresident€of€boycotting€country€Y.€€Under€YððsÐ %8% Ðboycott€laws,€A€is€required€to€supply€informationÐ ì% & Ðabout€whether€A€has€any€dealings€with€boycottedÐ Ä&è ' Ðcountry€X.€€A€compiles€and€furnishes€theÐ œ'À!( Ðinformation€within€Y€and€does€so€of€its€ownÐ t(˜") Ðknowledge.Ð L)p#* ÐÌA€may€comply€with€that€requirement,€because€inÐ ü* %, Ðcompiling€and€furnishing€the€information€withinÐ Ô+ø%- ÐY,€based€on€its€own€knowledge,€A€is€engaging€inÐ ¬,Ð&. Ðan€activity€exclusively€within€Y.Ð Ü. ÐÌà ® à(iv)€€Same€as€(iii),€except€that€A€is€required€toÐ Œ°0 Ðsupply€information€about€Bððs€dealings€with€X.€Ð dˆ1 ÐFrom€its€own€knowledge€and€without€making€anyÐ < `2 Ðinquiry€of€B,€A€compiles€and€furnishes€theÐ  83 Ðinformation.Ð ì 4 ÐÌA€may€comply€with€that€requirement,€because€inÐ œ À6 Ðcompiling€and€furnishing€the€information€withinÐ t ˜7 ÐY,€based€on€its€own€knowledge,€A€is€engaging€inÐ Lp8 Ðan€activity€exclusively€within€Y.Ð $H 9 ÐÌ(v)€€Same€as€(iv),€except€that€in€making€itsÐ Ôø ; Ðresponses,€A€asks€B€to€compile€some€of€theÐ ¬Ð < Ðinformation.Ð „¨ = ÐÌA€may€not€comply,€because€the€gathering€of€theÐ 4X? Ðnecessary€information€takes€place€partiallyÐ  0@ Ðoutside€Y.Ð äA ÐÌà ® à(vi)€€U.S.€company€A€has€applied€for€a€licenseÐ ”¸C Ðto€establish€a€permanent€manufacturing€facility€inÐ lD Ðboycotting€country€Y.€€Under€Yððs€boycott€law,€AÐ DhE Ðmust€agree,€as€a€condition€of€the€license,€that€itÐ @F Ðwill€not€sell€any€of€its€output€to€blacklistedÐ ôG Ðforeign€firms.Ð ÌðH ÐÌA€may€not€comply,€because€the€agreement€wouldÐ | J Ðgovern€activities€of€A€which€are€not€exclusivelyÐ TxK Ðwithin€Y.Ð ,PL ÐÌÓ  Óà@@¸ àDISCRIMINATION€AGAINST€Ð Ü N ÐUNITED€à@@½½¸ àSTATES€PERSONSÐ ´!ØO ÐÓSiÓÌà ® à(i)€€A,€a€subsidiary€of€U.S.€company€B,€is€aÐ d#ˆQ Ðbona€fide€resident€of€boycotting€country€Y.€€AÐ <$`R Ðmanufactures€air€conditioners€in€its€plant€in€Y.€Ð %8S ÐUnder€Yððs€boycott€laws,€A€must€agree€not€to€hireÐ ì% T Ðnationals€of€boycotted€country€X.Ð Ä&è U ÐÌA€may€agree€to€the€restriction€and€may€abide€by€itÐ t(˜"W Ðwith€respect€to€its€recruitment€of€individuals€withƒÐ L)p#X Ðin€Y,€because€the€recruitment€of€such€individualsÐ $*H$Y Ðis€an€activity€exclusively€within€Y.€€However,€AÐ ü* %Z Ðcannot€abide€by€this€restriction€with€respect€to€itsÐ Ô+ø%[ Ðrecruitment€of€individuals€outside€Y,€because€thisÐ ¬,Ð&\ Ðis€not€an€activity€exclusively€within€Y.Ð Ü ÐÌà F à(ii)€€Same€as€(i),€except€that€pursuant€to€YððsÐ Œ° Ðboycott€laws,€A€must€agree€not€to€hire€anyoneÐ dˆ Ðwho€is€of€a€designated€religion.Ð < ` ÐÌA€may€not€agree€to€this€restriction,€because€theÐ ì  Ðagreement€calls€for€discrimination€against€U.S.Ð Ä è Ðpersons€on€the€basis€of€religion.€€It€makes€noÐ œ À Ðdifference€whether€the€recruitment€of€the€U.S.Ð t ˜  Ðpersons€occurs€within€or€without€Y.€€(NOTE:€TheÐ Lp  Ðexception€for€compliance€with€local€law€does€notÐ $H  Ðapply€to€boycott-based€refusals€to€employ€U.S.Ð ü  Ðpersons€on€the€basis€of€race,€religion,€sex,€orÐ Ôø  Ðnational€origin€even€if€the€activity€is€exclusivelyÐ ¬Ð  Ðwithin€the€boycotting€country.)Ð „¨  ÐÌÓ  ÓÔ‡/&Ø{%%%&rfÔ(i)€€òòCompliance€with€local€import€lawóóÔ#†%&rf%%/&Ø{›p#ÔÐ 4X ÐÓpÓÌÔ‡·&¡z%%%&rfÔ(1)€Ô#†%&rf%%·&¡z.q#Ô€Any€United€States€person€who€is€a€bona€fideÐ â Ðresident€of€a€foreign€country,€including€aÐ ¾â Ðboycotting€country,€may,€in€importing€goods,Ð –º Ðmaterials€or€components€into€that€country,Ð n’ Ðcomply€or€agree€to€comply€with€the€import€lawsÐ Fj Ðof€that€country,€provided€that:Ð B ÐÌà F à(i)€€The€items€are€for€his€own€use€or€for€his€useÐ Îò Ðin€performing€contractual€services€within€thatÐ ¦Ê Ðcountry;€andÐ ~¢ ÐÌà F à(ii)€In€the€normal€course€of€business,€the€itemsÐ .R Ðare€identifiable€as€to€their€source€or€origin€at€theÐ  * Ðtime€of€their€entry€into€the€foreign€country€by:Ð Þ   ÐÌà F àà Ü à(a)€€Uniqueness€of€design€or€appearance;€orÐ Ž"²" ÐÌà F àà Ü à(b)€€Trademark,€trade€name,€or€otherÐ >$b$ Ðidentification€normally€on€the€items€themselves,Ð %:% Ðincluding€their€packaging.Ð î% & ÐÌÔ‡¸&¡z%%%&rfÔ(2)€Ô#†%&rf%%¸&¡z¢u#Ô€The€factors€that€will€be€considered€inÐ ž'Â!( Ðdetermining€whether€a€United€States€person€is€aÐ z(ž") Ðbona€fide€resident€of€a€foreign€country€are€thoseÐ R)v#* Ðset€forth€in€paragraph€(g)€of€this€section.€€BonaÐ **N$+ Ðfide€residence€of€a€United€States€companyððsÐ +&%, Ðsubsidiary,€affiliate,€or€other€permanentÐ Ú+þ%- Ðestablishment€in€a€foreign€country€does€not€conferÐ ²,Ö&. Ðsuch€residence€on€such€United€States€company.Ð Ü. ÐLikewise,€bona€fide€residence€of€a€United€StatesÐ ´Ø/ Ðcompanyððs€employee€in€a€foreign€country€doesÐ Œ°0 Ðnot€confer€such€residence€on€the€entire€company.Ð dˆ1 ÐÌÔ‡¹&¡z%%%&rfÔ(3)€Ô#†%&rf%%¹&¡zÍx#Ô€A€United€States€person€who€is€a€bona€fideÐ  83 Ðresident€of€a€foreign€country€may€take€actionÐ ð 4 Ðunder€this€exception€through€an€agent€outside€theÐ È ì5 Ðcountry,€but€the€agent€must€act€at€the€direction€ofÐ   Ä6 Ðthe€resident€and€not€exercise€his€own€discretion.€Ð x œ7 ÐTherefore,€if€a€United€States€person€resident€in€aÐ Pt8 Ðboycotting€country€takes€action€to€comply€with€aÐ (L 9 Ðboycotting€countryððs€import€law€with€respect€toÐ $ : Ðthe€importation€of€qualified€goods,€he€may€directÐ Øü ; Ðhis€agent€in€the€United€States€on€the€action€to€beÐ °Ô < Ðtaken,€but€the€United€States€agent€himself€mayÐ ˆ¬ = Ðnot€exercise€any€discretion.Ð `„ > ÐÌÔ‡º&¡z%%%&rfÔ(4)€Ô#†%&rf%%º&¡z>|#Ô€For€purposes€of€this€exception,€the€test€thatÐ 4@ Ðgoverns€whether€goods€or€components€of€goodsÐ ìA Ðare€specifically€identifiable€is€identical€to€the€testÐ ÄèB Ðapplied€in€paragraph€(d)€of€this€section€onÐ œÀC Ðð ðCompliance€With€Unilateral€and€SpecificÐ t˜D ÐSelectionðð€to€determine€whether€they€areÐ LpE Ðidentifiable€as€to€their€source€or€origin€in€theÐ $HF Ðnormal€course€of€business.Ð ü G ÐÌÔ‡»&¡z%%%&rfÔ(5)€Ô#†%&rf%%»&¡zˆ~#Ô€The€availability€of€this€exception€for€theÐ ¬ÐI Ðimport€of€goods€depends€on€whether€the€goodsÐ ˆ¬J Ðare€intended€for€the€United€States€personððs€ownÐ `„K Ðuse€at€the€time€they€are€imported.€€It€does€notÐ 8\L Ðdepend€upon€who€has€title€to€the€goods€at€the€timeÐ  4M Ðof€importation€into€a€foreign€country.Ð è N ÐÌÔ‡¼&¡z%%%&rfÔ(6)€Ô#†%&rf%%¼&¡z]€#Ô€Goods€are€for€the€United€States€personððs€ownÐ ˜"¼P Ðuse€(including€the€performance€of€contractualÐ t#˜Q Ðservices€within€the€foreign€country)€if:Ð L$pR ÐÌà ® à(i)€€They€are€to€be€consumed€by€the€UnitedÐ ü% T ÐStates€person;Ð Ô&ø U ÐÌà ® à(ii)€€They€are€to€remain€in€the€United€StatesÐ „(¨"W Ðpersonððs€possession€and€to€be€used€by€that€person;Ð \)€#X ÐÌà ® à(iii)€€They€are€to€be€used€by€the€United€StatesÐ  +0%Z Ðperson€in€performing€contractual€services€forÐ ä+&[ Ðanother;Ð ¼,à&\ Їà F à(iv)€€They€are€to€be€further€manufactured,Ð Ü Ðincorporated€into,€refined€into,€or€reprocessedÐ ´Ø Ðinto€another€product€to€be€manufactured€forÐ Œ° Ðanother;€orÐ dˆ ÐÌà F à(v)€€They€are€to€be€incorporated€into,€orÐ  8 Ðpermanently€affixed€as€a€functional€part€of,€aÐ ì  Ðproject€to€be€constructed€for€another.Ð Ä è ÐÌÔ‡½&¡z%%%&rfÔ(7)€Ô#†%&rf%%½&¡zÚ„#Ô€Goods€acquired€to€fill€an€order€for€such€goodsÐ t ˜  Ðfrom€another€are€not€for€the€United€StatesÐ Pt  Ðpersonððs€own€use.€€Goods€procured€for€anotherÐ (L  Ðare€not€for€oneððs€own€use,€even€if€the€furnishingÐ $  Ðof€procurement€services€is€the€business€in€whichÐ Øü  Ðthe€United€States€person€is€customarily€engaged.€Ð °Ô  ÐNor€are€goods€obtained€for€simple€resale€acquiredÐ ˆ¬  Ðfor€oneððs€own€use,€even€if€the€United€StatesÐ `„  Ðperson€is€engaged€in€the€retail€business.€Ð 8\ ÐLikewise,€goods€obtained€for€inclusion€in€aÐ 4 Ðturnkey€project€are€not€for€oneððs€own€use€if€theyÐ è  Ðare€not€customarily€incorporated€into,€or€do€notÐ Àä Ðcustomarily€become€permanently€affixed€as€aÐ ˜¼ Ðfunctional€part€of€the€project.Ð p” ÐÌÔ‡¾&¡z%%%&rfÔ(8)€Ô#†%&rf%%¾&¡zȈ#Ô€This€part€of€the€local€law€exception€does€notÐ  D Ðapply€to€the€import€of€services,€even€when€theÐ ü  ÐUnited€States€person€importing€such€services€is€aÐ Ôø Ðbona€fide€resident€of€a€boycotting€country€and€isÐ ¬Ð Ðimporting€them€for€his€own€use.€€In€addition,€thisÐ „¨ Ðexception€is€available€for€a€United€States€personÐ \€ Ðwho€is€a€bona€fide€resident€of€a€foreign€countryÐ 4X Ðonly€when€the€individual€or€entity€actually€presentÐ  0 Ðwithin€that€country€takes€action€through€theÐ ä   Ðexercise€of€his€own€discretion.Ð ¼!à! ÐÌÔ‡¿&¡z%%%&rfÔ(9)€Ô#†%&rf%%¿&¡z°‹#Ô€Use€of€this€exception€will€be€monitored€andÐ l## Ðcontinually€reviewed€to€determine€whether€itsÐ H$l$ Ðcontinued€availability€is€consistent€with€theÐ  %D% Ðnational€interest.€€Its€availability€may€be€limitedÐ ø% & Ðor€withdrawn€as€appropriate.€€In€reviewing€theÐ Ð&ô ' Ðcontinued€availability€of€this€exception,€the€effectÐ ¨'Ì!( Ðthat€the€inability€to€comply€with€local€import€lawsÐ €(¤") Ðwould€have€on€the€economic€and€other€relationsÐ X)|#* Ðof€the€United€States€with€boycotting€countriesÐ 0*T$+ Ðwill€be€considered.Ð +,%, ÐÌÔ‡À&¡z%%%&rfÔ(10)Ô#†%&rf%%À&¡z†Ž#Ô€€A€United€States€person€who€is€a€bona€fideÐ ¸,Ü&. Ðresident€of€a€foreign€country€may€comply€or€agreeÐ Ü. Ðto€comply€with€the€host€countryððs€import€lawsÐ ´Ø/ Ðeven€if€he€knows€or€has€reason€to€know€thatÐ Œ°0 Ðparticular€laws€are€boycott-related.€€However,€noÐ dˆ1 ÐUnited€States€person€may€comply€or€agree€toÐ < `2 Ðcomply€with€any€host€country€law€which€wouldÐ  83 Ðrequire€him€to€discriminate€against€any€UnitedÐ ì 4 ÐStates€person€on€the€basis€of€race,€religion,€sex,€orÐ Ä è5 Ðnational€origin,€or€to€supply€information€aboutÐ œ À6 Ðany€United€States€personððs€race,€religion,€sex,€orÐ t ˜7 Ðnational€origin.Ð Lp8 ÐÌÌÌÓ  ÓEXAMPLES€OF€PERMISSIBLEÐ ¬Ð < ÐCOMPLIANCE€WITH€LOCAL€IMPORT€LAWÐ „¨ = ÐÓá‘ÓÌ€€€€The€following€examples€are€intended€to€giveÐ 4X? Ðguidance€in€determining€the€circumstances€inÐ  0@ Ðwhich€compliance€with€local€import€law€isÐ äA Ðpermissible.€€They€are€illustrative,€notÐ ¼àB Ðcomprehensive.Ð ”¸C Ðà ® àà D àà Ú àà p àà Ð àÌÓ  Óà@@``¸ àCOMPLIANCE€BY€A€Ð DhE ÐBONA€FIDE€à@@þ þ ¸ àRESI‚DENTÐ @F ÐÓÀ“ÓÌà ® à(i)€€A,€a€subsidiary€of€U.S.€company€B,€is€aÐ ÌðH Ðbona€fide€resident€of€boycotting€country€Y€and€isÐ ¤ÈI Ðengaged€in€oil€drilling€operations€in€Y.€€InÐ | J Ðacquiring€certain€large,€specifically€identifiableÐ TxK Ðproducts€for€carrying€out€its€operations€in€Y,€AÐ ,PL Ðchooses€only€from€non-blacklisted€firms€becauseÐ  (M ÐYððs€import€laws€prohibit€the€importation€of€goodsÐ Ü N Ðfrom€blacklisted€firms.€€However,€with€respect€toÐ ´!ØO Ðsmall‚er€items,€B€makes€the€selection€on€behalf€ofÐ Œ"°P ÐA€and€sends€them€to€A€in€Y.Ð d#ˆQ ÐÌA€may€choose€from€non-blacklisted€firms,Ð %8S Ðbecause€it€is€a€U.S.€€person€who€is€a€bona€fideÐ ì% T Ðresident€in€Y.€€However,€because€B€is€not€residentÐ Ä&è U Ðin€Y,€B€cannot€make€boycott-based€selections€toÐ œ'À!V Ðconform€with€Yððs€import€laws€prohibiting€theÐ t(˜"W Ðimportation€of€goods€from€blacklisted€firms.Ð L)p#X ÐÌà ® à(ii)€€Same€as€(i),€except€that€after€making€itsÐ ü* %Z Ðchoices€on€the€larger€items,€A€directs€B€to€carryÐ Ô+ø%[ Ðout€its€instructions€by€entering€into€appropriateÐ ¬,Ð&\ Ðcontracts€and€making€necessary€shippingÐ Ü Ðarrangements.Ð ´Ø ÐÌB€may€carry€out€Aððs€instructions€provided€that€A,Ð dˆ Ða€bona€fide€resident€of€Y,€has€in€fact€made€theÐ < ` Ðchoice€and€B€is€exercising€no€discretion,€but€isÐ  8 Ðacting€only€as€Aððs€agent.€€(NOTE:€SuchÐ ì  Ðtransactions€between€related€companies€will€beÐ Ä è Ðscrutinized€carefully.€€A€must€in€fact€exercise€theÐ œ À Ðdiscretion€and€make€the€selections.€€If€theÐ t ˜  Ðdiscretion€is€exercised€by€B,€B€would€be€inÐ Lp  Ðviolation€of€this€part.)Ð $H  ÐÌà F à(iii)€€U.S.€construction€company€A€has€aÐ Ôø  Ðcontract€to€build€a€school€in€boycotting€countryÐ ¬Ð  ÐY.€€Aððs€employees€set€up€operations€in€Y€forÐ „¨  Ðpurposes€of€commencing€construction.€€AððsÐ \€  Ðemployees€in€Y€advise€Aððs€headquarters€in€theÐ 4X ÐUnited€States€that€Yððs€import€laws€prohibitÐ  0 Ðimportation€of€goods€manufactured€by€blacklistedÐ ä Ðfirms.€€Aððs€headquarters€then€issues€invitations€toÐ ¼à Ðbid€only€to€non-blacklist‚ed€firms€for€certainÐ ”¸ Ðspecifically€identifiable€goods.Ð l ÐÌAððs€headquartersðð€choice€of€non-blacklistedÐ @ Ðsuppliers€is€not€a€choice€made€by€a€U.S.€personÐ ô Ðwho€is€a€bona€fide€resident€of€Y,€because€theÐ Ìð Ðdiscretion€in€issuing€the€bids€was€exercised€in€theÐ ¤È ЂUnited€States,€not€in€Y.Ð |  ÐÌà F à(iv)€€Same€as€(iii),€except€that€Aððs€employees€inÐ ,P ÐY€actually€make€the€decision€regarding€to€whomÐ  ( Ðthe€bids€should€be€issued.Ð Ü   ÐÌThe€choices€made€by€Aððs€employees€are€choicesÐ Œ"°" Ðmade€by€U.S.€persons€who€are€bona€fide€residentsÐ d#ˆ# Ðof€Y,€because€the€discretion€in€choosing€wasÐ <$`$ Ðexercised€solely€in€Y.€€(NOTE:€ChoicesÐ %8% Ðpurportedly€made€by€employees€of€U.S.Ð ì% & Ðcompanies€who€are€resident€in€boycottingÐ Ä&è ' Ðcountries€will€be€carefully€scrutinized€to€ensureÐ œ'À!( Ðthat€the€discretion€was€exercised€entirely€in€theÐ t(˜") Ðboycotting€country.)Ð L)p#* ÐÌà@hh ¸ àSPECIFICALLY€IDENTIFIABLE€GOODSˆÐ ü* %, ÐÌThe€test€and€examples€as€to€what€constitutesÐ ¬,Ð&. Ðspecifically€identifiable€goods€are€identical€toÐ Ü. Ðthose€applicable€under€paragraph€(d)€of€thisÐ ´Ø/ Ðsection€on€ð ðCompliance€With€UnilateralÐ Œ°0 ÐSelection.ððÐ dˆ1 Ðà ® àà D àà Ú àà p àÌÓ  Óà@@ŸŸ, àIMPORTS€FOR€U.S.€PERSONððS€OWN€USEÐ  83 ÐWITHIN€BOYCOTTING€COUNTRYÐ ì 4 ÐÓ“¤ÓÌà ® à(i)€€A,€a€subsidiary€of€U.S.€company€B,€is€aÐ œ À6 Ðbona€fide€resident€of€boycotting€country€Y.€€AÐ t ˜7 Ðplans€to€import€computer€operated€machine€toolsÐ Lp8 Ðto€be€installed€in€its€automobile€plant€inÐ $H 9 Ðboycotting€country€Y.€€The€computers€areÐ ü : Ðmounted€on€a€separate€bracket€on€the€side€of€theÐ Ôø ; Ðequipment€and€are€readily€identifiable€by€brandÐ ¬Ð < Ðname.€€A€orders€the€tools€from€U.S.€supplier€CÐ „¨ = Ðand€specifies€that€C€must€incorporate€computersÐ \€ > Ðmanufactured€by€D,€a€non-blacklisted€company.€Ð 4X? ÐA€would€have€chosen€computers€manufactured€byÐ  0@ ÐE,€except€that€E€is€blacklisted,€and€Yððs€importÐ äA Ðlaws€prohibit€the€importation€of€goodsÐ ¼àB Ðmanufactured€by€blacklisted€firms.Ð ”¸C ÐÌA€may€refuse€to€purchase€Eððs€computers,€becauseÐ DhE ÐA€is€importing€the€computers€for€its€own€use€in€itsÐ @F Ðmanufacturing€operations€in€Y.Ð ôG ÐÌà ® à(ii)€€A,€a€subsidiary€of€U.S.€company€B,€is€aÐ ¤ÈI Ðbona€fide€resident€of€boycotting€country€Y.€€ToÐ | J Ðmeet€the€needs€of€its€employees€in€Y,€A€importsÐ TxK Ðcertain€specifically€identifiable€commissary€itemsÐ ,PL Ðfor€sale,€such€as€cosmetics;€and€canteen€items,Ð  (M Ðsuch€as€candy.€€In€selecting€such€items€forÐ Ü N Ðimportation€into€Y,€A€chooses€items€made€only€byÐ ´!ØO Ðnon-blacklisted€firms,€because€Yððs€import€lawsÐ Œ"°P Ðprohibit€importation€of€goods€from€blacklistedÐ d#ˆQ Ðfirms.€Ð <$`R ÐÌA€may€import€these€items€only€fromÐ ì% T Ðnon-blacklisted€firms,€because€the€importation€ofÐ Ä&è U Ðgoods€for€consumption€by€Aððs€employees€is€anÐ œ'À!V Ðimportation€for€Aððs€own€use.Ð t(˜"W ÐÌà ® à(iii)€€A,€a€U.S.€construction€company€which€is€aÐ $*H$Y Ðbona€fide€resident€of€boycotting€country€Y,€has€aÐ ü* %Z Ðcontract€to€build€a€hospital€complex€for€theÐ Ô+ø%[ ÐMinistry€of€Health€in€Y.€€Under€the€contract,€AÐ ¬,Ð&\ Ðwill€be€general€manager€of€the€project€withÐ Ü Ðdiscretion€to€choose€all€subcontractors€andÐ ´Ø Ðsuppliers.€€The€complex€is€to€be€built€on€a€turnkeyÐ Œ° Ðbasis,€with€A€retaining€title€to€the€property€andÐ dˆ Ðbearing€all€financial€risk€until€the€complex€isÐ < ` Ðconveyed€to€Y.€€In€choosing€specificallyÐ  8 Ðidentifiable€goods€for€import,€such€as€central€airÐ ì  Ðconditioning€units€and€plate€glass,€A€excludesÐ Ä è Ðblacklisted€suppliers€in€order€to€comply€with€YððsÐ œ À Ðimport€laws.€€These€goods€are€customarilyÐ t ˜  Ðincorporated€into,€or€permanently€affixed€as€aÐ Lp  Ðfunctional€part€of,€the€project.Ð $H  ÐÌA€may€refuse€to€deal€with€blacklisted€suppliers€ofÐ Ôø  Ðspecifically€identifiable€goods,€becauseÐ ¬Ð  Ðimportation€of€goods€by€a€general€contractor€to€beÐ „¨  Ðincorporated€into€a€construction€project€in€Y€is€anÐ \€  Ðimportation€of€goods€for€Aððs€own€use.Ð 4X ÐÌà F à(iv)€€Same€as€(iii),€except€that,€in€addition,€inÐ ä Ðchoosing€U.S.€architects€and€engineers€to€work€onÐ ¼à Ðthe€project,€A€excludes€blacklisted€firms,€becauseÐ ”¸ ÐYððs€import€laws€prohibit€the€use€of€servicesÐ l Ðrendered€by€blacklisted€persons.Ð Dh ÐÌA€may€not€refuse€to€deal€with€blacklistedÐ ô Ðarchitectural€or€engineering€firms,€because€thisÐ Ìð Ðexception€does€not€apply€to€the€import€ofÐ ¤È Ðservices.€€It€is€irrelevant€that,€at€some€stage,€theÐ |  Ðarchitectural€or€engineering€drawings€or€plansÐ Tx Ðmay€be€brought€to€the€site€in€Y.€€This€factor€isÐ ,P Ðinsufficient€to€transform€such€services€intoÐ  ( Ðð ðgoodsðð€for€purposes€of€this€exception.Ð Ü   ÐÌà F à(v)€€Same€as€(iii),€except€that€the€project€is€to€beÐ Œ"°" Ðcompleted€on€a€ð ðcost€plusðð€basis,€with€Y€makingÐ d#ˆ# Ðprogress€payments€to€A€at€various€stages€ofÐ <$`$ Ðcompletion.Ð %8% ÐÌA€may€refuse€to€deal€with€blacklisted€suppliers€ofÐ Ä&è ' Ðspecifically€identifiable€goods,€because€theÐ œ'À!( Ðimportation€of€goods€by€A€to€be€incorporated€in€aÐ t(˜") Ðproject€A€is€under€contract€to€complete€is€anÐ L)p#* Ðimportation€of€goods€for€its€own€use.€€The€termsÐ $*H$+ Ðof€payment€are€irrelevant.Ð ü* %, ÐÌà F à(vi)€€A,€a€U.S.€construction€company€which€is€aÐ ¬,Ð&. Ðbona€fide€resident€of€boycotting€country€Y,€has€aÐ Ü. Ðcontract€for€the€construction€of€an€office€buildingÐ ´Ø/ Ðin€Y€on€a€turnkey€basis.€€In€choosing€goods€to€beÐ Œ°0 Ðused€or€included€in€the€office€complex,€A€ordersÐ dˆ1 Ðwallboard,€office€partitions,€and€lighting€fixturesÐ < `2 Ðfrom€non-blacklisted€manufacturers.€€A€likewiseÐ  83 Ðorders€desks,€office€chairs,€typewriters,€and€officeÐ ì 4 Ðsupplies€from€non-blacklisted€manufacturers.Ð Ä è5 ÐÌBecause€they€are€customarily€incorporated€into€orÐ t ˜7 Ðpermanently€affixed€as€a€functional€part€of€anÐ Lp8 Ðoffice€building,€the€wallboard,€office€partitions,Ð $H 9 Ðand€lighting€fixtures€are€for€Aððs€own€use,€and€AÐ ü : Ðmay€select€non-blacklisted€suppliers€of€theseÐ Ôø ; Ðgoods€in€order€to€comply€with€Yððs€import€laws.€Ð ¬Ð < ÐBecause€they€are€not€customarily€incorporatedÐ „¨ = Ðinto€or€permanently€affixed€to€the€project,€theÐ \€ > Ðdesks,€office€chairs,€typewriters,€and€officeÐ 4X? Ðsupplies€are€not€for€Aððs€own€use,€and€A€may€notÐ  0@ Ðmake€boycott-based€selections€of€the€suppliers€ofÐ äA Ðthese€goods.Ð ¼àB ÐÌà ® à(vii)€€A,€a€U.S.€company€engaged€in€theÐ lD Ðbusiness€of€selling€automobiles,€is€a€bona€fideÐ DhE Ðresident€of€boycotting€country€Y.€€In€orderingÐ @F Ðautomobiles€from€time€to€time€for€purposes€ofÐ ôG Ðstocking€its€inventory,€A€purchases€from€U.S.Ð ÌðH Ðmanufacturer€B,€but€not€U.S.€manufacturer€C,Ð ¤ÈI Ðbecause€C€is€blacklisted.€€Retail€sales€areÐ | J Ðsubsequently€made€from€this€inventory.Ð TxK ÐÌAððs€import€of€automobiles€from€B€is€not€anÐ  (M Ðimport€for€Aððs€own€use,€because€the€importationÐ Ü N Ðof€items€for€general€inventory€in€a€retail€salesÐ ´!ØO Ðoperation€is€not€an€importation€for€oneððs€own€use.Ð Œ"°P ÐÌà ® à(viii)€€A,€a€U.S.€company€engaged€in€theÐ <$`R Ðmanufacture€of€pharmaceutical€products,€is€aÐ %8S Ðbona€fide€resident€of€boycotting€country€Y.€€InÐ ì% T Ðimporting€chemicals€for€incorporation€into€theÐ Ä&è U Ðpharmaceutical€products,€A€purchases€from€U.S.Ð œ'À!V Ðsupplier€B,€but€not€U.S.€supplier€C,€because€C€isÐ t(˜"W Ðblacklisted.Ð L)p#X ÐÌA€may€import€chemicals€from€B€rather€than€C,Ð ü* %Z Ðbecause€the€importation€of€specificallyÐ Ô+ø%[ Ðidentifiable€items€for€incorporation€into€anotherÐ ¬,Ð&\ Ðproduct€is€an€importation€for€oneððs€own€use.Ð Ü ÐÌà F à(ix)€€A,€a€U.S.€management€company€which€is€aÐ Œ° Ðbona€fide€resident€of€boycotting€country€Y,€has€aÐ dˆ Ðcontract€with€the€Ministry€of€Education€in€Y€toÐ < ` Ðpurchase€supplies€for€Yððs€school€system.€€FromÐ  8 Ðtime€to€time,€A€purchases€goods€from€abroad€forÐ ì  Ðdelivery€to€various€schools€in€Y.Ð Ä è ÐÌAððs€purchase€of€goods€for€Yððs€school€system€doesÐ t ˜  Ðnot€constitute€an€importation€of€goods€for€AððsÐ Lp  Ðown€use,€because€A€is€acting€as€a€procurementÐ $H  Ðagent€for€another.€€A,€therefore,€cannot€makeÐ ü  Ðboycott-based€selections€of€suppliers€of€suchÐ Ôø  Ðschool€supplies.Ð ¬Ð  ÐÌà F à(x)€€A,€a€U.S.€company€which€is€a€bona€fideÐ \€  Ðresident€of€boycotting€country€Y,€has€a€contract€toÐ 4X Ðmake€purchases€for€Y€in€connection€with€aÐ  0 Ðconstruction€project€in€Y.€€A€is€not€engaged€in€theÐ ä Ðconstruction€of,€or€in€any€other€activity€inÐ ¼à Ðconnection€with,€the€project.€Aððs€role€is€merely€toÐ ”¸ Ðpurchase€goods€for€Y€and€arrange€for€theirÐ l Ðdelivery€to€Y.Ð Dh ÐÌA€is€not€purchasing€goods€for€its€own€use,Ð ô Ðbecause€A€is€acting€as€a€procurement€agent€for€Y.€Ð Ìð ÐA,€therefore,€cannot€make€boycott€selections€ofÐ ¤È Ðsuppliers€of€such€goods.Ð |  ÐÌà F à(xi)€€A,€a€U.S.€company€which€is€a€bona€fideÐ ,P Ðresident€of€boycotting€country€Y,€importsÐ  ( Ðspecifically€identifiable€goods€into€Y€for€exhibitÐ Ü   Ðby€A€at€a€trade€fair€in€Y.€€In€selecting€goods€forÐ ´!Ø! Ðexhibit,€A€excludes€items€made€by€blacklistedÐ Œ"°" Ðfirms.Ð d#ˆ# ÐÌAððs€import€of€goods€for€its€exhibit€at€a€trade€fairÐ %8% Ðconstitutes€an€import€for€Aððs€own€use.€€However,Ð ì% & ÐA€may€not€sell€in€Y€those€goods€it€imported€forÐ Ä&è ' Ðexhibit.Ð œ'À!( ÐÌà F à(xii)€€A€is€a€bona€fide€resident€of€boycottingÐ L)p#* Ðcountries€Y€and€Z.€In€compliance€with€YððsÐ $*H$+ Ðboycott€laws,€A€chooses€specifically€identifiableÐ ü* %, Ðgoods€for€its€oil€drilling€operations€in€Y€and€Z€byÐ Ô+ø%- Ðexcluding€blacklisted€suppliers.€€The€goods€areÐ ¬,Ð&. Ðfirst€imported€into€Y.€€Those€purchased€for€AððsÐ Ü. Ðuse€in€Z€are€then€transshipped€to€Z.Ð ´Ø/ ÐÌIn€selecting€those€goods€for€importation€into€Y,€AÐ dˆ1 Ðis€making€an€import€selection€for€its€own€use,Ð < `2 Ðeven€though€A€may€use€some€of€the€importedÐ  83 Ðgoods€in€Z.€€Further,€the€subsequent€shipmentÐ ì 4 Ðfrom€Y€to€Z€of€those€goods€purchased€for€use€in€ZÐ Ä è5 Ðis€an€import€into€Z€for€Aððs€own€use.Ð œ À6 ÐÌÔ  Ôò òÓ  ÓÔ  Ôðð760.4Ô ÐÔÐ Lp8 ÐÌEVASIONÐ ü : Ðó óÓÐÓÌÔ‡0&Ø{%%%&rfÔ(a)€€Ô#†%&rf%%0&Ø{ŽÐ#ÔNo€United€States€person€may€engage€in€anyÐ ¬Ð < Ðtransaction€or€take€any€other€action,€eitherÐ †ª = Ðindependently€or€through€any€other€person,€withÐ ^‚ > Ðintent€to€evade€the€provisions€of€this€part.€€NorÐ 6Z? Ðmay€any€United€States€person€assist€anotherÐ 2@ ÐUnited€States€person€to€violate€or€evade€theÐ æ A Ðprovisions€of€this€part.Ð ¾âB ÐÌòòò ò(b)ó óóó€Ô€g&rf%%%&rfÔThe€exceptions€set€forth€in€ðð760.3(a)€throughÐ n’D Ð(i)€do€not€permit€activities€or€agreements€(expressÐ HlE Ðor€implied€by€a€course€of€conduct,€including€aÐ  DF Ðpattern€of€responses)€which€are€otherwiseÐ øG Ðprohibited€by€this€part€and€which€are€not€withinÐ ÐôH Ðthe€intent€of€such€exceptions.€€However,€activitiesÐ ¨ÌI Ðwithin€the€coverage€and€intent€of€the€exceptionsÐ €¤J Ðset€forth€in€this€part€do€not€constitute€evasionÐ X|K Ðregardless€of€how€often€such€exceptions€areÐ 0TL Ðutilized.Ð  ,M ÐÌÔ‡2&Ø{%%g&rfÔ(c)€Ô#†g&rf%%2&Ø{@Õ#ÔUse€of€any€artifice,€device€or€scheme€which€isÐ ¸!ÜO Ðintended€to€place€a€person€at€a€commercialÐ ’"¶P Ðdisadvantage€or€impose€on€him€special€burdensÐ j#ŽQ Ðbecause€he€is€blacklisted€or€otherwise€restrictedÐ B$fR Ðfor€boycott€reasons€from€having€a€businessÐ %>S Ðrelationship€with€or€in€a€boycotting€country€willÐ ò% T Ðbe€regarded€as€evasion€for€purposes€of€this€part.Ð Ê&î U ÐÌÔ€“&Ø{%%g&rfÔò ò(d)ó ó€Ô€ß&rf%%“&Ø{ÔUnless€permitted€under€one€of€the€exceptions,Ð z(ž"W Ðuse€of€risk€of€loss€provisions€that€expresslyÐ T)x#X Ðimpose€a€financial€risk€on€another€because€of€theÐ ,*P$Y Ðimport€laws€of€a€boycotting€country€mayÐ +(%Z Ðconstitute€evasion.€€If€they€are€introduced€afterÐ Ü+&[ ÐJanuary€18,€1978,€their€use€will€be€presumed€toÐ ´,Ø&\ Ðconstitute€evasion.€€This€presumption€may€beÐ Ü Ðrebutted€by€a€showing€that€such€a€provision€is€inÐ ´Ø Ðcustomary€usage€without€distinction€betweenÐ Œ° Ðboycotting€and€non-boycotting€countries€and€thatÐ dˆ Ðthere€is€a€legitimate€non-boycott€reason€for€itsÐ < ` Ðuse.€€On€the€other€hand,€use€of€such€a€provisionÐ  8 Ðby€a€United€States€person€subsequent€to€JanuaryÐ ì  Ð21,€1978€is€presumed€not€to€constitute€evasion€ifÐ Ä è Ðthe€provision€had€been€customarily€used€by€thatÐ œ À Ðperson€prior€to€January€21,€1978.Ð t ˜  ÐÌÔ‡4&Ø{%%ß&rfÔ(e)Ô#†ß&rf%%4&Ø{ÐÛ#Ô€Use€of€dummy€corporations€or€other€devicesÐ $H  Ðto€mask€prohibited€activity€will€also€be€regardedÐ þ"  Ðas€evasion.€€Similarly,€it€is€evasion€under€this€partÐ Öú  Ðto€divert€specific€boycotting€country€orders€fromÐ ®Ò  Ða€United€States€parent€to€a€foreign€subsidiary€forÐ †ª  Ðpurposes€of€complying€with€prohibited€boycottÐ ^‚  Ðrequirements.€€However,€alteration€of€a€personððsÐ 6Z Ðstructure€or€method€of€doing€business€will€notÐ 2 Ðconstitute€evasion€so€long€as€the€alteration€isÐ æ  Ðbased€on€legitimate€business€considerations€and€isÐ ¾â Ðnot€undertaken€solely€to€avoid€the€application€ofÐ –º Ðthe€prohibitions€of€this€part.€€The€facts€andÐ n’ Ðcircumstances€of€an€arrangement€or€transactionÐ Fj Ðwill€be€carefully€scrutinized€to€see€whetherÐ B Ðappearances€conform€to€reality.Ð ö ÐÌà@Ó Ó ¸ àEXAMPLESˆÐ ¦Ê ÐÌThe€following€examples€are€intended€to€giveÐ Vz Ðguidance€to€persons€in€determining€circumstancesÐ .R Ðin€which€this€section€will€apply.€€They€areÐ  * Ðillustrative,€not€comprehensive.Ð Þ   ÐÌà F à(i)€€A,€a€U.S.€insurance€company,€receives€aÐ Ž"²" Ðrequest€from€boycotting€country€Y€askingÐ f#Š# Ðwhether€it€does€business€in€boycotted€country€X.€Ð >$b$ ÐBecause€furnishing€such€information€isÐ %:% Ðprohibited,€A€declines€to€answer€and€as€a€result€isÐ î% & Ðplaced€on€Yððs€blacklist.€€The€following€year,€AððsÐ Æ&ê ' Ðannual€report€contains€new€information€about€AððsÐ ž'Â!( Ðworldwide€operations,€including€a€list€of€allÐ v(š") Ðcountries€in€which€A€does€business.€€A€then€mailsÐ N)r#* Ða€copy€of€its€annual€report,€which€has€neverÐ &*J$+ Ðbefore€contained€such€information,€to€officials€ofÐ þ*"%, Ðthe€government€of€country€Y.Ð Ö+ú%- ÐÐ ®,Ò&. ÐAbsent€some€business€justification€unrelated€toÐ Ü. Ðthe€boycott€for€changing€the€annual€report€in€thisÐ ´Ø/ Ðfashion,€Aððs€action€constitutes€evasion€of€thisÐ Œ°0 Ðpart.Ð dˆ1 ÐÌà ® à(ii)€€A,€a€U.S.€construction€firm€resident€inÐ  83 Ðboycotting€country€Y,€orders€lumber€from€U.S.Ð ì 4 Ðcompany€B.€€A€unilaterally€selects€B€in€partÐ Ä è5 Ðbecause€U.S.€lumber€producer€C€is€blacklisted€byÐ œ À6 ÐY€and€Cððs€products€are€therefore€not€importable.€Ð t ˜7 ÐIn€placing€its€order€with€B,€A€requests€that€BÐ Lp8 Ðstamp€its€name€or€logo€on€the€lumber€so€that€AÐ $H 9 Ðð ðcan€be€certain€that€it€is,€in€fact,€receiving€BððsÐ ü : Ðproducts.ðð€€B€does€not€normally€so€stamp€itsÐ Ôø ; Ðlumber,€and€Aððs€purpose€in€making€the€request€isÐ ¬Ð < Ðto€appear€to€fit€within€the€unilateral€selectionÐ „¨ = Ðexception€of€this€part.Ð \€ > ÐÌAbsent€additional€facts€justifying€Aððs€action,€AððsÐ  0@ Ðaction€constitutes€evasion€of€this€part.Ð äA ÐÔ‡%&rf%%ß&rfÔÌà ® à(iii)€€A,€a€U.S.€company,€has€been€sellingÐ ”¸C Ðsewing€machines€to€boycotting€country€Y€for€aÐ lD Ðnumber€of€years.€€A€receives€a€request€for€aÐ DhE Ðnegative€certificate€of€origin€from€a€newÐ @F Ðcustomer.€€A€is€aware€that€furnishing€suchÐ ôG Ðcertificates€are€prohibited;€therefore,€A€arrangesÐ ÌðH Ðto€have€all€future€shipments€run€through€a€foreignÐ ¤ÈI Ðcorporation€in€a€third€country€which€will€affix€theÐ | J Ðnecessary€negative€certificate€before€forwardingÐ TxK Ðthe€machines€on€to€Y.Ð ,PL ÐÌAððs€action€constitutes€evasion€of€this€part,Ð Ü N Ðbecause€it€is€a€device€to€mask€prohibited€activityÐ ´!ØO Ðcarried€out€on€Aððs€behalf.Ð Œ"°P ÐÌà ® à(iv)€€A,€a€U.S.€company,€has€been€sellingÐ <$`R Ðcalculators€to€distributor€B€in€country€C€for€aÐ %8S Ðnumber€of€years€and€routinely€supplies€positiveÐ ì% T Ðcertificates€of€origin.€€A€receives€an€order€fromÐ Ä&è U Ðcountry€Y€which€requires€negative€certificates€ofÐ œ'À!V Ðorigin.€€A€arranges€to€make€all€future€sales€toÐ t(˜"W Ðdistributor€B€in€country€C.€€A€knows€B€will€stepÐ L)p#X Ðin€and€make€the€sales€to€Y€which€A€wouldÐ $*H$Y Ðotherwise€have€made€directly.€€B€will€make€theÐ ü* %Z Ðnecessary€negative€certifications.€€Aððs€warranty,Ð Ô+ø%[ Ðwhich€it€will€continue€to€honor,€runs€to€theÐ ¬,Ð&\ Ðpurchaser€in€Y.Ð Ü ÐÌAððs€action€constitutes€evasion,€because€theÐ Œ° Ðdiverting€of€orders€to€B€is€a€device€to€maskÐ dˆ Ðprohibited€activity€carried€out€on€Aððs€behalf.Ô#†ß&rf%%%&rfé#ÔÐ < ` ÐÌà F à(v)€€A,€a€U.S.€company,€is€negotiating€aÐ ì  Ðlong-term€contract€with€boycotting€country€Y€toÐ Ä è Ðmeet€all€Yððs€medical€supply€needs.€€Y€informs€AÐ œ À Ðthat€before€such€a€contract€can€be€concluded,€AÐ t ˜  Ðmust€complete€Yððs€boycott€questionnaire.€€AÐ Lp  Ðknows€that€it€is€prohibited€from€answering€theÐ $H  Ðquestionnaire€so€it€arranges€for€a€local€agent€in€YÐ ü  Ðto€supply€the€necessary€information.Ð Ôø  ÐÌAððs€action€constitutes€evasion€of€this€part,Ð „¨  Ðbecause€it€is€a€device€to€mask€prohibited€activityÐ \€  Ðcarried€out€on€Aððs€behalf.Ð 4X ÐÌà F à(vi)€€A,€a€U.S.€contractor€which€has€notÐ ä Ðpreviously€dealt€with€boycotting€country€Y,€isÐ ¼à Ðawarded€a€construction€contract€by€Y.€€Because€itÐ ”¸ Ðis€customary€in€the€construction€industry€for€aÐ l Ðcontractor€to€establish€an€on-site€facility€for€theÐ Dh Ðduration€of€the€project,€A€establishes€such€anÐ @ Ðoffice,€which€satisfies€the€requirements€for€bonaÐ ô Ðfide€residency.€€Thereafter,€Aððs€office€in€Y€takesÐ Ìð Ða€number€of€actions€permitted€under€theÐ ¤È Ðcompliance€with€local€law€exception.Ð |  ÐÌAððs€actions€do€not€constitute€evasion,€because€AððsÐ ,P Ðfacility€in€Y€was€established€for€legitimateÐ  ( Ðbusiness€reasons.Ð Ü   ÐÌà F à(vii)€€A,€a€controlled€foreign€subsidiary€of€U.S.Ð Œ"°" Ðcompany€B,€is€located€in€non-boycotting€countryÐ d#ˆ# ÐM.€€A€and€B€both€make€machine€tools€for€sale€inÐ <$`$ Ðtheir€respective€marketing€regions.€€Bððs€marketingÐ %8% Ðregion€includes€boycotting€country€Y.€AfterÐ ì% & Ðassessing€the€requirements€of€this€part,€B€decidesÐ Ä&è ' Ðthat€it€can€no€longer€make€machines€for€sale€in€Y.€Ð œ'À!( ÐInstead,€A€decides€to€expand€its€facilities€in€M€inÐ t(˜") Ðorder€to€service€the€Y€market.Ð L)p#* ÐÌThe€actions€of€A€and€B€do€not€constitute€evasion,Ð ü* %, Ðbecause€there€is€a€legitimate€business€reason€forÐ Ô+ø%- Ðtheir€actions.€€It€is€irrelevant€that€the€effect€mayÐ ¬,Ð&. Ðbe€to€place€sales€which€would€otherwise€haveÐ Ü. Ðbeen€subject€to€this€part€beyond€the€reach€of€thisÐ ´Ø/ Ðpart.Ð Œ°0 ÐÌà ® à(viii)€€A,€a€U.S.€manufacturer,€from€time€to€timeÐ < `2 Ðreceives€purchase€orders€from€boycotting€countryÐ  83 ÐY€which€A€fills€from€its€plant€in€the€UnitedÐ ì 4 ÐStates.€€A€knows€that€it€is€about€to€receive€anÐ Ä è5 Ðorder€from€Y€which€contains€a€request€for€aÐ œ À6 Ðcertification€which€A€is€prohibited€fromÐ t ˜7 Ðfurnishing€under€this€part.€€In€order€to€permit€theÐ Lp8 Ðcertification€to€be€made,€A€diverts€the€purchaseÐ $H 9 Ðorder€to€its€foreign€subsidiary.Ð ü : ÐÌAððs€diversion€of€the€purchase€order€constitutesÐ ¬Ð < Ðevasion€of€this€part,€because€it€is€a€device€to€maskÐ „¨ = Ðprohibited€activity€carried€out€on€Aððs€behalf.Ð \€ > ÐÌà ® à(ix)€€A,€a€U.S.€company,€is€engaged€inÐ  0@ Ðassembling€drilling€rigs€for€shipment€toÐ äA Ðboycotting€country€Y.€€Because€of€potentialÐ ¼àB Ðdifficulties€in€securing€entry€into€Y€of€materialsÐ ”¸C Ðsupplied€by€blacklisted€firms,€A€insists€thatÐ lD Ðblacklisted€firms€take€a€15€percent€discount€on€allÐ DhE Ðmaterials€which€they€supply€to€A.€€As€a€result,€noÐ @F Ðblacklisted€firms€are€willing€to€transact€with€A.€Ð ôG ÐÌAððs€insistence€on€the€discount€for€materialsÐ ¤ÈI Ðsupplied€by€blacklisted€firms€constitutes€evasionÐ | J Ðof€this€part,€because€it€is€a€device€or€schemeÐ TxK Ðwhich€is€intended€to€place€a€special€burden€onÐ ,PL Ðblacklisted€firms€because€of€Yððs€boycott.Ð  (M ÐÌÔ‡%&rf%%ß&rfÔà ® à(x)€€Same€as€(ix),€except€that€shortly€afterÐ ´!ØO ÐJanuary€18,€1978,€A,€a€U.S.€company,€insists€thatÐ Œ"°P Ðits€suppliers€sign€contracts€which€provide€thatÐ d#ˆQ Ðeven€after€title€passes€from€the€supplier€to€A,€theÐ <$`R Ðsupplier€will€bear€the€risk€of€loss€and€indemnify€AÐ %8S Ðif€goods€which€the€supplier€has€furnished€areÐ ì% T Ðdenied€entry€into€Y€for€boycott€reasons.Ð Ä&è U ÐÌAððs€action€constitutes€evasion€of€this€part,Ð t(˜"W Ðbecause€it€is€a€device€or€scheme€which€is€intendedÐ L)p#X Ðto€place€Ð $*H$Y Ðà@BB% àa€special€burden€on€blacklisted€persons€becauseˆÐ ü* %Z Ðof€Yððs€boycott.Ð Ô+ø%[ ÐÐ ¬,Ð&\ Ðà F à(xi)€€Same€as€(x),€except€that€A€customarilyÐ Ü Ðinsisted€on€such€an€arrangement€with€its€supplierÐ ´Ø Ðprior€to€January€18,€1978.Ð Œ° ЀAððs€action€is€presumed€not€to€constitute€evasion,Ð dˆ Ðbecause€use€of€this€contractual€arrangement€wasÐ < ` Ðcustomary€for€A€prior€to€January€18,€1978.Ð  8 ÐÌà F à(xii)€€A,€a€U.S.€company,€has€a€contract€toÐ Ä è Ðsupply€automobile€sub-assembly€units€toÐ œ À Ðboycotting€country€Y.€€Shortly€after€January€18,Ð t ˜  Ð1978,€A€insists€that€its€suppliers€sign€contractsÐ Lp  Ðwhich€provide€that€even€after€title€passes€to€A,€theÐ $H  Ðsupplier€will€bear€the€risk€of€loss€and€indemnify€AÐ ü  Ðif€goods€which€the€supplier€has€furnished€areÐ Ôø  Ðdenied€entry€into€boycotting€country€Y€for€anyÐ ¬Ð  Ðreason.Ð „¨  ÐÌAððs€insistence€on€this€arrangement€is€presumed€toÐ 4X Ðconstitute€evasion,€because€it€is€a€device€which€isÐ  0 Ðintended€to€place€a€special€burden€on€blacklistedÐ ä Ðfirms€because€of€Yððs€boycott.€€The€presumptionÐ ¼à Ðmay€be€rebutted€by€competent€evidence€showingÐ ”¸ Ðthat€use€of€such€an€arrangement€is€customaryÐ l Ðwithout€regard€to€the€boycotting€or€non-boycottiƒÐ Dh Ðng€character€of€the€country€to€which€it€relates€andÐ @ Ðthat€there€is€a€legitimate€non-boycott€businessÐ ô Ðreason€for€its€use.Ð Ìð ÐÔ#†ß&rf%%%&rf[#ÔÌà F à(xiii)€€Same€as€(vii),€except€that€A€requires€thatÐ |  Ðall€suppliers€make€in-country€delivery.Ð Tx ÐÌAððs€action€does€not€constitute€evasion,€because€itÐ  ( Ðis€an€ordinary€commercial€practice€to€requireÐ Ü   Ðin-country€delivery€of€goods.Ð ´!Ø! ÐÌà F à(xiv)€€Same€as€(xii),€except€that€A€requires€thatÐ d#ˆ# Ðtitle€remain€with€the€supplier€until€delivery€in€YÐ <$`$ Ðhas€been€made.Ð %8% ÐÌAððs€action€does€not€constitute€evasion,€because€itÐ Ä&è ' Ðis€ordinary€commercial€practice€to€require€thatÐ œ'À!( Ðtitle€remain€with€the€supplier€until€delivery€hasÐ t(˜") Ðbeen€made.€€This€example€is€distinguishable€fromÐ L)p#* Ðexample€(xii),€because€in€example€(xii)€A€hadÐ $*H$+ Ðinsisted€on€an€extraordinary€arrangement€deƒÐ ü* %, Ðsigned€to€require€that€the€risk€of€loss€remain€withÐ Ô+ø%- Ðthe€supplier€even€after€title€had€passed€to€A.Ð ¬,Ð&. ЇÔ‡%&rf%%ß&rfÔà ® à(xv)€€U.S.€bank€A€is€contacted€by€U.S.€companyÐ Ü. ÐB€to€finance€Bððs€transaction€with€boycottingÐ ´Ø/ Ðcountry€Y.€€Payment€will€be€effected€through€aÐ Œ°0 Ðletter€of€credit€in€favor€of€B€at€its€U.S.€address.€AÐ dˆ1 Ðknows€that€the€letter€of€credit€will€containÐ < `2 Ðrestrictive€boycott€conditions€which€would€bar€itsÐ  83 Ðimplementation€by€A€if€the€beneficiary€were€aÐ ì 4 ÐU.S.€person.€€A€advises€B€of€the€boycott€conditionÐ Ä è5 Ðand€suggests€to€B€that€the€beneficiary€should€beÐ œ À6 Ðchanged€to€C,€a€shell€corporation€in€non-boycottiƒÐ t ˜7 Ðng€country€M.€€The€beneficiary€is€changedÐ Lp8 Ðaccordingly.Ð $H 9 ÐÌThe€actions€of€both€A€and€B€constitute€evasion€ofÐ Ôø ; Ðthis€part,€because€the€arrangement€is€a€device€toÐ ¬Ð < Ðmask€prohibited€activities.Ð „¨ = ÐÌà ® à(xvi)€€Same€as€(xv),€except€that€U.S.€companyÐ 4X? ÐB,€the€beneficiary€of€the€letter€of€credit,€arrangesÐ  0@ Ðto€change€the€beneficiary€to€Bððs€foreignÐ äA Ðsubsidiary€so€that€A€can€implement€the€letter€ofÐ ¼àB Ðcredit.€€A€knows€that€this€has€been€done.Ð ”¸C ÐÌAððs€implementation€of€the€letter€of€credit€in€theÐ DhE Ðface€of€its€knowledge€of€Bððs€action€constitutesÐ @F Ðevasion€of€this€part,€because€Aððs€action€is€part€ofÐ ôG Ða€device€to€mask€prohibited€activity€by€bothÐ ÌðH Ðparties.€Ô#†ß&rf%%%&rff#ÔÐ ¤ÈI ÐÌà ® à(xvii)€€U.S.€bank€A,€located€in€the€UnitedÐ TxK ÐStates,€is€contacted€by€foreign€company€B€toÐ ,PL Ðfinance€Bððs€transaction€with€boycotting€countryÐ  (M ÐY.€€B€is€a€controlled€subsidiary€of€a€U.S.Ð Ü N Ðcompany.€€The€transaction€which€is€to€be€financedÐ ´!ØO Ðwith€a€letter€of€credit€payable€to€B€at€its€foreignÐ Œ"°P Ðaddress,€requires€B€to€certify€that€none€of€itsÐ d#ˆQ Ðboard€members€are€of€a€particular€religious€faith.€Ð <$`R ÐSince€B€cannot€legally€furnish€the€certificate,€itÐ %8S Ðasks€A€to€convey€the€necessary€information€to€YÐ ì% T Ðthrough€Aððs€bank€branch€in€Y.€€Such€informationÐ Ä&è U Ðwould€be€furnished€wholly€outside€the€letter€ofÐ œ'À!V Ðcredit€transaction.Ð t(˜"W ÐÌAððs€action€constitutes€evasion€of€this€part,Ð $*H$Y Ðbecause€it€is€undertaken€to€assist€Bððs€violation€ofÐ ü* %Z Ðthis€part.Ð Ô+ø%[ ÐÐ ¬,Ð&\ Ðà F à(xviii)€€U.S.€bank€A€is€asked€by€foreignÐ Ü Ðcorporation€B€to€implement€a€letter€of€credit€inÐ ´Ø Ðfavor€of€B€so€that€B€might€perform€under€itsÐ Œ° Ðlong-term€contract€with€boycotting€country€Y.€Ð dˆ ÐUnder€the€terms€of€the€letter€of€credit,€B€isÐ < ` Ðrequired€to€certify€that€none€of€its€suppliers€isÐ  8 Ðblacklisted.€€A€knows€that€it€cannot€implement€aÐ ì  Ðletter€of€credit€with€this€condition,€so€it€tells€B€toÐ Ä è Ðnegotiate€the€elimination€of€this€requirement€fromÐ œ À Ðthe€letter€of€credit€and€instead€supply€theÐ t ˜  Ðcertification€to€Y€directly.Ð Lp  ÐÌAððs€suggestion€to€B€that€it€provide€the€negativeÐ ü  Ðcertification€to€Y€directly€constitutes€evasion€ofÐ Ôø  Ðthis€part,€because€A€is€taking€an€action€throughÐ ¬Ð  Ðanother€person€to€mask€prohibited€activity€on€AððsÐ „¨  Ðpart.Ð \€  Ðà@¸ ¸ ¸ àˆÌÌÔ  Ôò òÓ  Óðð760.5Ô A€wÔÐ ä ÐÌREPORTING€REQUIREMENTSÐ ”¸ Ðó óÓ‡ÓÌÓ  ÓÔ‡5&Ø{%%ß&rfÔ(a)€€òòScope€of€reporting€requirementsóóÔ#†ß&rf%%5&Ø{#ÔÐ Dh ÐÓÓÌÔ‡Á&¡z%%ß&rfÔ(1)€Ô#†ß&rf%%Á&¡z¢#Ô€A€United€States€person€who€receives€aÐ ò Ðrequest€to€take€any€action€which€has€the€effect€ofÐ Îò Ðfurthering€or€supporting€a€restrictive€tradeÐ ¦Ê Ðpractice€or€boycott€fostered€or€imposed€by€aÐ ~¢ Ðforeign€country€against€a€country€friendly€to€theÐ Vz ÐUnited€States€or€against€any€United€States€personÐ .R Ðmust€report€such€request€to€the€Department€ofÐ  * ÐCommerce€in€accordance€with€the€requirementsÐ Þ   Ðof€this€section.€€Such€a€request€may€be€eitherÐ ¶!Ú! Ðwritten€or€oral€and€may€include€a€request€toÐ Ž"²" Ðfurnish€information€or€enter€into€or€implement€anÐ f#Š# Ðagreement.€€It€may€also€include€a€solicitation,Ð >$b$ Ðdirective,€legend€or€instruction€that€asks€forÐ %:% Ðinformation€or€that€asks€that€a€United€StatesÐ î% & Ðperson€take€or€refrain€from€taking€a€particularÐ Æ&ê ' Ðaction.€€Such€a€request€shall€be€reportedÐ ž'Â!( Ðregardless€of€whether€the€action€requested€isÐ v(š") Ðprohibited€or€permissible€under€this€part,€exceptÐ N)r#* Ðas€otherwise€provided€by€this€section.Ð &*J$+ ÐÌÔ‡Â&¡z%%ß&rfÔ(2)€Ô#†ß&rf%%Â&¡zÕ$#Ô€For€purposes€of€this€section,€a€requestÐ Ö+ú%- Ðreceived€by€a€United€States€person€is€reportable€ifÐ ²,Ö&. Ðhe€knows€or€has€reason€to€know€that€the€purposeÐ Ü. Ðof€the€request€is€to€enforce,€implement,€orÐ ´Ø/ Ðotherwise€further,€support,€or€secure€complianceÐ Œ°0 Ðwith€an€unsanctioned€foreign€boycott€orÐ dˆ1 Ðrestrictive€trade€practice.Ð < `2 ÐÌà ® à(i)€€A€request€received€by€a€United€StatesÐ ì 4 Ðperson€located€in€the€United€States€is€reportable€ifÐ Ä è5 Ðit€is€received€in€connection€with€a€transaction€orÐ œ À6 Ðactivity€in€the€interstate€or€foreign€commerce€ofÐ t ˜7 Ðthe€United€States,€as€determined€underÐ Lp8 Ððð760.1(d)(1)€through€(5)€and€(18)€of€this€part.Ð $H 9 ÐÌà ® à(ii)€€A€request€received€by€a€United€StatesÐ Ôø ; Ðperson€located€outside€the€United€States€(that€is,Ð ¬Ð < Ða€foreign€subsidiary,€partnership,€affiliate,€branch,Ð „¨ = Ðoffice,€or€other€permanent€foreign€establishmentÐ \€ > Ðwhich€is€controlled€in€fact€by€any€domesticÐ 4X? Ðconcern,€as€determined€under€ðð760.1(c)€of€thisÐ  0@ Ðpart)€is€reportable€if€it€is€received€in€connectionÐ äA Ðwith€a€transaction€or€activity€in€the€interstate€orÐ ¼àB Ðforeign€commerce€of€the€United€States,€asÐ ”¸C Ðdetermined€under€ðð760.1(d)(6)€through€(17)€andÐ lD Ð(19)€of€this€part.Ð DhE ÐÌà ® à(iii)€€A€request€such€as€a€boycott€questionnaire,Ð ôG Ðunrelated€to€a€particular€transaction€or€activity,Ð ÌðH Ðreceived€by€any€United€States€person€is€reportableÐ ¤ÈI Ðwhen€such€person€has€or€anticipates€a€businessÐ | J Ðrelationship€with€or€in€a€boycotting€countryÐ TxK Ðinvolving€the€sale,€purchase€or€transfer€of€goodsÐ ,PL Ðor€services€(including€information)€in€theÐ  (M Ðinterstate€or€foreign€commerce€of€the€UnitedÐ Ü N ÐStates,€as€determined€under€ðð760.1(d)€of€this€part.Ð ´!ØO ÐÌÔ‡Ã&¡z%%ß&rfÔ(3)€Ô#†ß&rf%%Ã&¡z×-#Ô€These€reporting€requirements€apply€to€allÐ d#ˆQ ÐUnited€States€persons.€€They€apply€whether€theÐ @$dR ÐUnited€States€person€receiving€the€request€is€anÐ %<S Ðexporter,€bank€or€other€financial€institution,€Ð ð% T ÐÌinsurer,€freight€forwarder,€manufacturer,€or€anyÐ  'Ä!V Ðother€United€States€person€subject€to€this€part.Ð x(œ"W ÐÌÔ‡Ä&¡z%%ß&rfÔ(4)€Ô#†ß&rf%%Ä&¡z´/#ÔThe€acquisition€of€information€about€aÐ (*L$Y Ðboycotting€countryððs€boycott€requirementsÐ +(%Z Ðthrough€the€receipt€or€review€of€books,Ð Ü+&[ Ðpamphlets,€legal€texts,€exportersðð€guidebooks€andÐ ´,Ø&\ Ðother€similar€publications€does€not€constituteÐ Ü Ðreceipt€of€a€reportable€request€for€purposes€of€thisÐ ´Ø Ðsection.€€In€addition,€a€United€States€person€whoÐ Œ° Ðreceives€an€unsolicited€invitation€to€bid,€or€similarÐ dˆ Ðproposal,€containing€a€boycott€request€has€notÐ < ` Ðreceived€a€reportable€request€for€purposes€of€thisÐ  8 Ðsection€where€he€does€not€respond€to€theÐ ì  Ðinvitation€to€bid€or€other€proposal.Ð Ä è ÐÌÔ‡Å&¡z%%ß&rfÔ(5)€Ô#†ß&rf%%Å&¡z3#Ô€Because€of€the€use€of€certain€terms€forÐ t ˜  Ðboycott€and€non-boycott€purposes;€because€ofÐ Pt  ÐCongressional€mandates€to€provide€clear€andÐ (L  Ðprecise€guidelines€in€areas€of€inherentÐ $  Ðuncertainty;€and€because€of€the€DepartmentððsÐ Øü  Ðcommitment€to€minimize€paperwork€and€reduceÐ °Ô  Ðthe€cost€of€reporting€where€it€will€not€impair€theÐ ˆ¬  ÐDepartmentððs€ability€to€continue€to€monitorÐ `„  Ðforeign€boycotts,€the€following€specific€requestsÐ 8\ Ðare€not€reportable:Ð 4 ÐÌà F à(i)€€A€request€to€refrain€from€shipping€goods€onÐ Àä Ða€carrier€which€flies€the€flag€of€a€particularÐ ˜¼ Ðcountry€or€which€is€owned,€chartered,€leased€orÐ p” Ðoperated€by€a€particular€country€or€by€nationals€orÐ Hl Ðresidents€of€a€particular€country,€or€a€request€toÐ  D Ðcertify€to€that€effect.Ð ø ÐÌà F à(ii)€€A€request€to€ship€goods€via€a€prescribedÐ ¨Ì Ðroute,€or€a€request€to€refrain€from€shipping€goodsÐ €¤ Ðvia€a€proscribed€route,€or€a€request€to€certify€toÐ X| Ðeither€effect.Ð 0T ÐÌà F à(iii)€€A€request€to€supply€an€affirmativeÐ à   Ðstatement€or€certification€regarding€the€country€ofÐ ¸!Ü! Ðorigin€of€goods.Ð "´" ÐÌà F à(iv)€€A€request€to€supply€an€affirmativeÐ @$d$ Ðstatement€or€certification€regarding€the€name€ofÐ %<% Ðthe€supplier€or€manufacturer€of€the€goods€shippedÐ ð% & Ðor€the€name€of€the€provider€of€services.Ð È&ì ' ÐÌà F à(v)€€A€request€to€comply€with€the€laws€ofÐ x(œ") Ðanother€country€except€where€the€requestÐ P)t#* Ðexpressly€requires€compliance€with€that€countryððsÐ (*L$+ Ðboycott€laws.Ð +$%, ÐÌà F à(vi)€€A€request€to€an€individual€to€supplyÐ °,Ô&. Ðinformation€about€himself€or€a€member€of€hisÐ Ü. Ðfamily€for€immigration,€passport,€visa,€orÐ ´Ø/ Ðemployment€purposes.Ð Œ°0 ÐÌà ® à(vii)€€A€request€to€supply€an€affirmativeÐ < `2 Ðstatement€or€certification€indicating€theÐ  83 Ðdestination€of€exports€or€confirming€or€otherwiseÐ ì 4 Ðindicating€that€such€cargo€will€be€unloaded€orÐ Ä è5 Ðdischarged€at€a€particular€destination.Ð œ À6 ÐÌà ® à(viii)€€A€request€to€supply€a€certificate€by€theÐ Lp8 Ðowner,€master,€charterer,€or€any€employeeÐ $H 9 Ðthereof,€that€a€vessel,€aircraft,€truck€or€any€otherÐ ü : Ðmode€of€transportation€is€eligible,€otherwiseÐ Ôø ; Ðeligible,€permitted,€or€allowed€to€enter,€or€not€reƒÐ ¬Ð < Ðstricted€from€entering,€a€particular€port,€country,Ð „¨ = Ðor€group€of€countries€pursuant€to€the€laws,€rules,Ð \€ > Ðor€regulations€of€that€port,€country,€or€group€ofÐ 4X? Ðcountries.Ð  0@ ÐÌà ® à(ix)€€A€request€to€supply€a€certificate€from€anÐ ¼àB Ðinsurance€company€stating€that€the€insuranceÐ ”¸C Ðcompany€has€a€duly€authorized€agent€orÐ lD Ðrepresentative€within€a€boycotting€country€and/orÐ DhE Ðthe€name€and€address€of€such€agent.Ð @F ÐÌà ® à(x)€€A€request€to€comply€with€a€term€orÐ ÌðH Ðcondition€of€a€transaction€that€provides€that€theÐ ¤ÈI Ðvendor€bear€the€risk€of€loss€and€indemnify€theÐ | J Ðpurchaser€if€the€vendorððs€goods€are€denied€entryÐ TxK Ðinto€a€country€for€any€reason€(ð ðrisk€of€lossÐ ,PL Ðclauseðð)€if€such€clause€was€in€use€by€theÐ  (M Ðpurchaser€prior€to€January€18,€1978.Ð Ü N ÐÌÔ‡Æ&¡z%%ß&rfÔ(6)€Ô#†ß&rf%%Æ&¡zçB#Ô€No€United€States€person€may€engage€in€anyÐ Œ"°P Ðtransaction€or€take€any€other€action,€eitherÐ h#ŒQ Ðindependently€or€through€any€other€person,€withÐ @$dR Ðintent€to€evade€the€provisions€of€this€part.Ð %<S Ðà ® àà D àà Ú àà p àÌÔ‡Ç&¡z%%ß&rfÔ(7)€Ô#†ß&rf%%Ç&¡zcD#Ô€From€time€to€time€the€Department€will€surveyÐ È&ì U Ðdomestic€concerns€for€purposes€of€determiningÐ ¤'È!V Ðthe€worldwide€scope€of€boycott€requests€receivedÐ |( "W Ðby€their€controlled€foreign€subsidiaries€andÐ T)x#X Ðaffiliates€with€respect€to€their€activities€outsideÐ ,*P$Y ÐUnited€States€commerce.€€This€pertains€toÐ +(%Z Ðrequests€which€would€be€reportable€under€thisÐ Ü+&[ Ðsection€but€for€the€fact€that€the€activities€to€whichÐ ´,Ø&\ Ðthe€requests€relate€are€outside€United€StatesÐ Ü Ðcommerce.€€The€information€requested€willÐ ´Ø Ðinclude€the€number€and€nature€of€non-reportableÐ Œ° Ðboycott€requests€re‚ceived,€the€action(s)€requested,Ð dˆ Ðthe€actions(s)€taken€in€response€and€the€countriesÐ < ` Ðin€which€the€requests€originate.€€The€results€ofÐ  8 Ðsuch€surveys,€including€the€names€of€thoseÐ ì  Ðsurveyed,€will€be€made€public.Ð Ä è Ðà F àà Ü àà r àà  àÌÓ  ÓÔ‡6&Ø{%%ß&rfÔ(b)€€òòManner€of€reportingóó€Ô#†ß&rf%%6&Ø{I#ÔÐ t ˜  ÐÓIÓÌÔ‡É&¡z%%ß&rfÔ(1)€Ô#†ß&rf%%É&¡z•I#Ô€Each€reportable€request€must€be€reported.€Ð "F  ÐHowever,€if€more€than€one€document€(such€as€anÐ þ"  Ðinvitation€to€bid,€purchase€order,€or€letter€ofÐ Öú  Ðcredit)€containing€the€same€boycott€request€isÐ ®Ò  Ðreceived€as€part€of€the€same€transaction,€only€theÐ †ª  Ðfirst€such€request€need€be€reported.€€IndividualÐ ^‚  Ðshipments€against€the€same€purchase€order€orÐ 6Z Ðletter€of€credit€are€to€be€treated€as€part€of€the€sameÐ 2 Ðtransaction.€€Each€different€boycott€requestÐ æ  Ðassociated€with€a€given€transaction€must€beÐ ¾â Ðreported,€regardless€of€how€or€when€the€request€isÐ –º Ðreceived.Ð n’ ÐÌÔ‡Ê&¡z%%ß&rfÔ(2)€Ô#†ß&rf%%Ê&¡zåL#Ô€Each€United€States€person€actually€receivingÐ B Ða€reportable€request€must€report€that€request.€Ð ú ÐHowever,€such€person€may€designate€someoneÐ Òö Ðelse€to€report€on€his€behalf.€€For€example,€aÐ ªÎ ÐUnited€States€company,€if€authorized,€may€reportÐ ‚¦ Ðon€behalf€of€its€controlled€foreign€subsidiary€orÐ Z~ Ðaffiliates;€a€freight€forwarder,€if€authorized,€mayÐ 2V Ðreport€on€behalf€of€the€exporter;€and€a€bank,€ifÐ  . Ðauthorized,€may€report€on€behalf€of€theÐ â   Ðbeneficiary€of€a€letter€of€credit.€€If€a€personÐ º!Þ! Ðdesignated€to€report€a€request€received€by€anotherÐ ’"¶" Ðreceives€an€identical€request€directed€to€him€inÐ j#Ž# Ðconnection€with€the€same€transaction,€he€may€fileÐ B$f$ Ðone€report€on€behalf€of€himself€and€the€otherÐ %>% Ðperson.Ð ò% & ÐÌÔ‡Ë&¡z%%ß&rfÔ(3)€Ô#†ß&rf%%Ë&¡züP#Ô€Where€a€person€is€designated€to€report€onÐ ¢'Æ!( Ðbehalf€of€another,€the€person€receiving€the€requestÐ ~(¢") Ðremains€liable€for€any€failure€to€report€or€for€anyÐ V)z#* Ðrepresentations€made€on€his€behalf.€Further,Ð .*R$+ Ðanyone€reporting€on€behalf€of€another€is€notÐ +*%, Ðrelieved€of€his€own€responsibility€for€reportingÐ Þ+&- Ðany€boycott€request€which€he€receives,€even€if€itÐ ¶,Ú&. Ðis€an€identical€request€in€connection€with€theÐ Ü. Ðsame€transaction.Ð ´Ø/ ÐÌÔ‡Ì&¡z%%ß&rfÔ(4)€Ô#†ß&rf%%Ì&¡zˆS#Ô€Reports€must€be€submitted€in€duplicate€to:Ð dˆ1 ÐÌà ® àà D àReport€Processing€StaffÐ  <3 Ðà ® àà D àOffice€of€Antiboycott€Compliance€Ð ð 4 Ðà ® àà D àU.S.€Department€of€CommerceÐ È ì5 Ðà ® àà D àRoom€6098Ð   Ä6 Ðà ® àà D àWashington,€D.C.€€20230Ð x œ7 ÐÌEach€submission€must€be€made€in€accordanceÐ (L 9 Ðwith€the€following€requirements:Ð $ : ÐÌà ® à(i)€€Where€the€person€receiving€the€request€is€aÐ °Ô < ÐUnited€States€person€located€in€the€United€States,Ð ˆ¬ = Ðeach€report€of€requests€must€be€postmarked€by€theÐ `„ > Ðlast€day€of€the€month€following€the€calendarÐ 8\? Ðquarter€in€which€the€request€was€received€(e.g.,Ð 4@ ÐApril€30€for€the€quarter€consisting€of€January,Ð è A ÐFebruary,€and€March).Ð ÀäB ÐÌà ® à(ii)€Where€the€person€receiving€the€request€is€aÐ p”D ÐUnited€States€person€located€outside€the€UnitedÐ HlE ÐStates,€each€report€of€requests€must€beÐ  DF Ðpostmarked€by€the€last€day€of€the€second€monthÐ øG Ðfollowing€the€calendar€quarter€in€which€theÐ ÐôH Ðrequest€was€received€(e.g.,€May€31€for€the€quarterÐ ¨ÌI Ðconsisting€of€January,€February,€and€March).Ð €¤J ÐÌÔ‡Í&¡z%%ß&rfÔ(5)€Ô#†ß&rf%%Í&¡zŠY#Ô€At€the€reporting€personððs€option,€reports€mayÐ 0TL Ðbe€submitted€on€either€a€single€transaction€formÐ  0M Ð(Form€BIS-621P,€Report€of€Restrictive€TradeÐ ä N ÐPractice€or€Boycott€Request€Single€TransactionÐ ¼!àO Ð(revised€10-89))€or€on€a€multiple€transaction€formÐ ”"¸P Ð(Form€BIS-6051P,€Report€of€Request€forÐ l#Q ÐRestrictive€Trade€Practice€or€Boycott€MultipleÐ D$hR ÐTrans‚actions€(revised€10„89)).€€Use€of€theÐ %@S Ðmultiple€transaction€form€permits€the€reportingÐ ô% T Ðperson€to€provide€on€one€form€all€requiredÐ Ì&ð U Ðinformation€relating€to€as€many€as€75€reportableÐ ¤'È!V Ðrequests€received€within€any€single€reportingÐ |( "W Ðperiod.Ð T)x#X ÐÌÔ‡Î&¡z%%ß&rfÔ(6)€Ô#†ß&rf%%Î&¡z ]#Ô€Reports,€whether€submitted€on€the€singleÐ +(%Z Ðtransaction€form€or€on€the€multiple€transactionÐ à+&[ Ðform,€must€contain€entries€for€every€applicableÐ ¸,Ü&\ Ðitem€on€the€form,€including€whether€the€reportingÐ Ü Ðperson€intends€to€take€or€has€taken€the€actionÐ ´Ø Ðrequested.€€If€the€reporting€person€has€not€decidedÐ Œ° Ðwhat€action€he€will€take€by€the€time€the€report€isÐ dˆ Ðrequired€to€be€filed,€he€must€later€report€theÐ < ` Ðaction€he€decides€to€take€within€10€business€daysÐ  8 Ðafter€deciding.€€In€addition,€anyone€filing€a€reportÐ ì  Ðon€behalf€of€another€must€so€indicate€and€identifyÐ Ä è Ðthat€other€person.Ð œ À ÐÌÔ‡Ï&¡z%%ß&rfÔ(7)€Ô#†ß&rf%%Ï&¡zp`#Ô€Each€report€of€a€boycott€request€must€beÐ Lp  Ðaccompanied€by€two€copies€of€the€relevantÐ (L  Ðpage(s)€of€any€document(s)€in€which€the€requestÐ $  Ðappears.€€Reports€may€also€be€accompanied€byÐ Øü  Ðany€additional€information€relating€to€the€requestÐ °Ô  Ðas€the€reporting€person€desires€to€provideÐ ˆ¬  Ðconcerning€his€response€to€the€request.Ð `„  ÐÌÔ‡Ð&¡z%%ß&rfÔ(8)€Ô#†ß&rf%%Ð&¡z{b#Ô€Records€containing€information€relating€to€aÐ 4 Ðreportable€boycott€request,€including€a€copy€ofÐ ì Ðany€document(s)€in€which€the€request€appears,Ð Äè Ðmust€be€maintained€by€the€recipient€for€aÐ œÀ Ðfive-year€period€after€receipt€of€the€request.€TheÐ t˜ ÐDepartment€may€require€that€these€materials€beÐ Lp Ðsubmitted€to€it€or€that€it€have€access€to€them€atÐ $H Ðany€time€within€that€period.€€(See€part€762€of€theÐ ü  ÐEAR€for€additional€recordkeeping€requirements.)Ð Ôø ÐÌÓ  ÓÔ‡7&Ø{%%ß&rfÔ(c)€€òòDisclosure€of€informationóó.€Ô#†ß&rf%%7&Ø{0e#ÔÐ „¨ ÐÓ$eÓÌÔ‡Ñ&¡z%%ß&rfÔ(1)€Ô#†ß&rf%%Ñ&¡z¾e#Ô€Reports€of€requests€received€on€or€afterÐ 2V ÐOctober€7,€1976,€as€well€as€any€accompanyingÐ  2 Ðdocuments€filed€with€the€reports,€have€been€andÐ æ   Ðwill€continue€to€be€made€available€for€publicÐ ¾!â! Ðinspection€and€copying,€except€for€certainÐ –"º" Ðproprietary€information.€€With€respect€to€reportsÐ n#’# Ðof€requests€received€on€or€after€August€1,€1978,€ifÐ F$j$ Ðthe€person€making€the€report€certifies€that€aÐ %B% ÐUnited€States€person€to€whom€the€report€relatesÐ ö% & Ðwould€be€placed€at€a€competitive€disadvantageÐ Î&ò ' Ðbecause€of€the€disclosure€of€informationÐ ¦'Ê!( Ðregarding€the€quantity,€description,€or€value€ofÐ ~(¢") Ðany€articles,€materials,€and€supplies,€includingÐ V)z#* Ðrelated€technical€data€and€other€information,Ð .*R$+ Ðwhether€contained€in€a€report€or€in€anyÐ +*%, Ðaccompanying€document(s),€such€informationÐ Þ+&- Ðwill€not€be€publicly€disclosed€except€upon€failureÐ ¶,Ú&. Ðby€the€reporting€entity€to€edit€the€publicÐ Ü. Ðinspection€copy€of€the€accompanyingÐ ´Ø/ Ðdocument(s)€as€provided€by€paragraph€(c)(2)€ofÐ Œ°0 Ðthis€section,€unless€the€Secretary€of€CommerceÐ dˆ1 Ðdetermines€that€the€disclosure€would€not€place€theÐ < `2 ÐUnited€States€person€involved€at€a€competitiveÐ  83 Ðdisadvantage€or€that€it€would€be€contrary€to€theÐ ì 4 Ðnational€interest€to€withhold€the€information.€€InÐ Ä è5 Ðthe€event€the€Secretary€of€Commerce€considersÐ œ À6 Ðmaking€such€a€determination€€concerningÐ t ˜7 Ðcompetitive€disadvantage,€appropriate€notice€andÐ Lp8 Ðan€opportunity€for€comment€will€be€given€beforeÐ $H 9 Ðany€such€proprietary€information€is€publicly€disƒÐ ü : Ðclosed.€€In€no€event€will€requests€of€reportingÐ Ôø ; Ðpersons€to€withhold€any€information€contained€inÐ ¬Ð < Ðthe€report€other€than€that€specified€in€thisÐ „¨ = Ðparagraph€be€honored.Ð \€ > ÐÌÔ‡Ò&¡z%%ß&rfÔ(2)€Ô#†ß&rf%%Ò&¡z¿n#Ô€Because€a€copy€of€any€document(s)Ð  0@ Ðaccompanying€the€report€will€be€made€availableÐ è A Ðfor€public€inspection€and€copying,€one€copy€mustÐ ÀäB Ðbe€submitted€intact€and€another€copy€must€beÐ ˜¼C Ðedited€by€the€reporting€entity€to€delete€the€sameÐ p”D Ðinformation€which€it€certified€in€the€report€wouldÐ HlE Ðplace€a€United€States€person€at€a€competitiveÐ  DF Ðdisadvantage€if€disclosed.€€In€addition,€theÐ øG Ðreporting€entity€may€delete€from€this€copyÐ ÐôH Ðinformation€that€is€considered€confidential€andÐ ¨ÌI Ðthat€is€not€required€to€be€contained€in€the€reportÐ €¤J Ð(e.g.,€information€related€to€foreign€consignee).Ð X|K ÐThis€copy€should€be€conspicuously€marked€withÐ 0TL Ðthe€legend€ð ðPublic€Inspection€Copy.ðð€€WithÐ  ,M Ðrespect€to€documents€accompanying€reportsÐ à N Ðreceived€by€the€Department€on€or€after€July€1,Ð ¸!ÜO Ð1979,€the€public€inspection€copy€will€be€madeÐ "´P Ðavailable€as€submitted€whether€or€not€it€has€beenÐ h#ŒQ Ðappropriately€edited€by€the€reporting€entity€asÐ @$dR Ðprovided€by€this€paragraph.Ð %<S ÐÌÔ‡Ó&¡z%%ß&rfÔ(3)€Ô#†ß&rf%%Ó&¡z+t#Ô€Reports€and€accompanying€documents€whichÐ È&ì U Ðare€available€to€the€public€for€inspection€andÐ ¤'È!V Ðcopying€are€located€in€the:Ð |( "W Ðà0 ® àBIS€Freedom€of€Information€RecordsÐ T)x#X ÐInspection€Facility,€Room€4525Ð,*P$Y®(#®(# Ðà ® àDepartment€of€CommerceÐ +(%Z Ðà ® à14th€Street€and€Constitution€Avenue,€N.W.Ð Ü+&[ Ðà ® àWashington,€D.C.€€20230Ð ´,Ø&\ ÐRequests€to€inspect€such€documents€should€beÐ Ü Ðaddressed€to€that€facility.Ð ´Ø ÐÌÔ‡Ô&¡z%%ß&rfÔ(4)€Ô#†ß&rf%%Ô&¡zÏv#ÔThe€Secretary€of€Commerce€will€periodicallyÐ dˆ Ðtransmit€summaries€of€the€information€containedÐ @ d Ðin€the€reports€to€the€Secretary€of€State€for€suchÐ  < Ðaction€as€the€Secretary€of€State,€in€consultationÐ ð  Ðwith€the€Secretary€of€Commerce,€may€deemÐ È ì Ðappropriate€for€carrying€out€the€policies€in€sectionÐ   Ä Ð8(b)(2)€of€the€Export€Administration€Act€of€1979.Ð x œ  ÐÓ  ÓÌÌEXAMPLESÐ $  ÐÓñxÓÌThe€following€examples€are€intended€to€giveÐ °Ô  Ðguidance€in€determining€what€is€reportable.€€TheyÐ ˆ¬  Ðare€illustrative,€not€comprehensive.Ð `„  ÐÌà F à(i)€€A,€a€U.S.€manufacturer,€is€shipping€goods€toÐ 4 Ðboycotting€country€Y€and€is€asked€by€Y€to€certifyÐ è  Ðthat€it€is€not€blacklisted€by€Yððs€boycott€office.€Ð Àä ÐThe€request€to€A€is€reportable,€because€it€is€aÐ ˜¼ Ðrequest€to€A€to€comply€with€Yððs€boycottÐ p” Ðrequirements.Ð Hl ÐÌà F à(ii)€€A,€a€U.S.€manufacturing€company,€receivesÐ ø Ðan€order€for€tractors€from€boycotting€country€Y.€Ð Ðô ÐYððs€order€specifies€that€the€tires€on€the€tractors€beÐ ¨Ì Ðmade€by€B,€another€U.S.€company.€€A€believes€YÐ €¤ Ðhas€specified€B€as€the€tire€supplier€becauseÐ X| Ðotherwise€A€would€have€used€tires€made€by€C,€aÐ 0T Ðblacklisted€company,€and€Y€will€not€takeÐ  , Ðshipment€of€tractors€containing€tires€made€byÐ à   Ðblacklisted€companies.Ð ¸!Ü! ÐÌA€must€report€Yððs€request€for€tires€made€by€B,Ð h#Œ# Ðbecause€A€has€reason€to€know€that€B€was€chosenÐ @$d$ Ðfor€boycott€reasons.Ð %<% ÐÌà F à(iii)€€Same€as€(ii),€except€A€knows€that€YððsÐ È&ì ' Ðrequest€has€nothing€to€do€with€the€boycott€butÐ  'Ä!( Ðsimply€reflects€Yððs€preference€for€tires€made€byÐ x(œ") ÐB.Ð P)t#* ÐÌYððs€request€is€not€reportable,€because€it€isÐ +$%, Ðunrelated€to€Yððs€boycott.€Ð Ø+ü%- ÐÐ °,Ô&. Ðà ® à(iv)€€Same€as€(ii),€except€A€neither€knows€norÐ Ü. Ðhas€reason€to€know€why€Y€has€chosen€B.Ð ´Ø/ ÐÌYððs€request€is€not€reportable,€because€A€neitherÐ dˆ1 Ðknows€nor€has€reason€to€know€that€Yððs€request€isÐ < `2 Ðbased€on€Yððs€boycott.Ð  83 ÐÌà ® à(v)€€A,€a€controlled€foreign€subsidiary€of€U.S.Ð Ä è5 Ðcompany€B,€is€a€resident€of€boycotting€country€Y.€Ð œ À6 ÐA€is€a€general€contractor.€€After€being€supplied€byÐ t ˜7 ÐA€with€a€list€of€competent€subcontractors,€AððsÐ Lp8 Ðcustomer€instructs€A€to€use€subcontractor€C€onÐ $H 9 Ðthe€project.€€A€believes€that€C€was€chosenÐ ü : Ðbecause,€among€other€things,€the€other€listedÐ Ôø ; Ðsubcontractors€are€blacklisted.Ð ¬Ð < ÐÌThe€instruction€to€A€by€its€customer€that€C€beÐ \€ > Ðused€on€the€project€is€reportable,€because€it€is€aÐ 4X? Ðrequest€to€comply€with€Yððs€boycott€requirements.Ð  0@ ÐÌà ® à(vi)€€A,€a€controlled€foreign€subsidiary€of€U.S.Ð ¼àB Ðcompany€B,€is€located€in€non-boycotting€countryÐ ”¸C ÐP.€€A€receives€an€order€for€washing€machinesÐ lD Ðfrom€boycotting€country€Y.€€Y€instructs€A€that€aÐ DhE Ðnegative€certificate€of€origin€must€accompany€theÐ @F Ðshipment.€€The€washing€machines€are€madeÐ ôG Ðwholly€in€P,€without€U.S.€components.Ð ÌðH ÐÌYððs€instruction€to€A€regarding€the€negativeÐ | J Ðcertificate€of€origin€is€not€reportable,€because€theÐ TxK Ðtransaction€to€which€it€relates€is€not€in€U.S.Ð ,PL Ðcommerce.Ð  (M ÐÌà ® à(vii)€€Same€as€(vi),€except€that€A€obtainsÐ ´!ØO Ðcomponents€from€the€United€States€for€theÐ Œ"°P Ðpurpose€of€filling€the€order€from€Y.€€YððsÐ d#ˆQ Ðinstruction€to€A€regarding€the€negative€certificateÐ <$`R Ðof€origin€is€reportable,€because€the€transaction€toÐ %8S Ðwhich€it€relates€is€in€U.S.€commerce.Ð ì% T ÐÌà ® à(viii)€€A,€a€U.S.€construction€company,€receivesÐ œ'À!V Ðin€the€mail€an€unsolicited€invitation€to€bid€on€aÐ t(˜"W Ðconstruction€project€in€boycotting€country€Y.€€TheÐ L)p#X Ðinvitation€to€bid€requires€those€who€respond€toÐ $*H$Y Ðcertify€that€they€do€not€have€any€plants€or€branchÐ ü* %Z Ðoffices€in€boycotted€country€X.€€A€does€notÐ Ô+ø%[ Ðrespond.€Ð ¬,Ð&\ ЇAððs€receipt€of€the€unsolicited€invitation€to€bid€isÐ Ü Ðnot€reportable,€because€the€request€does€not€relateÐ ´Ø Ðto€any€present€or€anticipated€business€of€A€withÐ Œ° Ðor€in€Y.Ð dˆ ÐÌà F à(ix)€€Same€as€(viii),€except€that€A€receives€aÐ  8 Ðboycott€questionnaire€from€a€central€boycottÐ ì  Ðoffice.€€A€does€not€do€business€in€any€of€theÐ Ä è Ðboycotting€countries€involved,€and€does€notÐ œ À Ðanticipate€doing€any€business€in€those€countries.€Ð t ˜  ÐA€does€not€respond.Ð Lp  ÐÌAððs€receipt€of€the€boycott€questionnaire€is€notÐ ü  Ðreportable,€because€it€does€not€relate€to€anyÐ Ôø  Ðpresent€or€anticipated€business€by€A€with€or€in€aÐ ¬Ð  Ðboycotting€country.Ð „¨  ÐÌà F à(x)€€A,€a€U.S.€manufacturer,€is€seeking€marketsÐ 4X Ðin€which€to€expand€its€exports.€€A€sends€aÐ  0 Ðrepresentative€to€boycotting€country€Y€to€exploreÐ ä ÐYððs€potential€as€a€market€for€Aððs€products.€€AððsÐ ¼à Ðrepresentative€discusses€its€products€but€does€notÐ ”¸ Ðenter€into€any€contracts€on€that€trip.€€A€does,Ð l Ðhowever,€hope€that€sales€will€materialize€in€theÐ Dh Ðfuture.€€Subsequently,€A€receives€a€boycottÐ @ Ðquestionnaire€from€Y.Ð ô ÐÌAððs€receipt€of€the€boycott€questionnaire€isÐ ¤È Ðreportable,€because€the€request€relates€to€AððsÐ |  Ðanticipated€business€with€or€in€a€boycottingÐ Tx Ðcountry.€€For€purposes€of€determining€whether€aÐ ,P Ðreport€is€required,€it€makes€no€difference€whetherÐ  ( ÐA€re‚sponds€to€the€questionnaire,€and€it€makes€noÐ Ü   Ðdifference€that€actual€sales€contracts€are€not€inÐ ´!Ø! Ðexistence€or€do€not€materialize.Ð Œ"°" ÐÌà F à(xi)€€Same€as€(x),€except€that€Aððs€representativeÐ <$`$ Ðenters€into€a€contract€to€sell€Aððs€products€to€aÐ %8% Ðbuyer€in€boycotting€country€Y.€€Subsequently,€AÐ ì% & Ðreceives€a€boycott€questionnaire€from€Y.Ð Ä&è ' ÐÌAððs€receipt€of€the€boycott€questionnaire€isÐ t(˜") Ðreportable,€because€it€relates€to€Aððs€presentÐ L)p#* Ðbusiness€with€or€in€a€boycotting€country.€ForÐ $*H$+ Ðpurposes€of€determining€whether€a€report€isÐ ü* %, Ðrequired,€it€makes€no€difference€whether€AÐ Ô+ø%- Ðresponds€to€the€questionnaire.Ð ¬,Ð&. Їà ® à(xii)€€A,€a€U.S.€freight€forwarder,€purchases€anÐ Ü. Ðexporterððs€guidebook€which€includes€the€importÐ ´Ø/ Ðrequirements€of€boycotting€country€Y.€€TheÐ Œ°0 Ðguide‚book€contains€descriptions€of€actions€whichÐ dˆ1 ÐU.S.€exporters€must€take€in€order€to€makeÐ < `2 Ðdelivery€of€goods€to€Y.Ð  83 ÐÌAððs€acquisition€of€the€guidebook€is€not€reportable,Ð Ä è5 Ðbecause€he€has€not€received€a€request€fromÐ œ À6 Ðanyone.Ð t ˜7 ÐÌà ® à(xiii)€€A,€a€U.S.€freight€forwarder,€is€arrangingÐ $H 9 Ðfor€the€shipment€of€goods€to€boycotting€country€YÐ ü : Ðat€the€request€of€B,€a€U.S.€exporter.€€B€asks€A€toÐ Ôø ; Ðassume€responsibility€to€assure€that€theÐ ¬Ð < Ðdocumentation€accompanying€the€shipment€is€inÐ „¨ = Ðcompliance€with€Yððs€import€requirements.€€AÐ \€ > Ðexamines€an€exportersðð€guidebook,€determinesÐ 4X? Ðthat€Yððs€import€regulations€require€a€certificationÐ  0@ Ðthat€the€insurer€of€the€goods€is€not€blacklisted€andÐ äA Ðasks€U.S.€insurer€C€for€such€a€certification.Ð ¼àB ÐÌBððs€request€to€A€is€reportable€by€A,€because€itÐ lD Ðconstitutes€a€request€to€comply€with€Yððs€boycottÐ DhE Ðas€of€the€time€A€takes€action€to€comply€with€YððsÐ @F Ðboycott€requirements€in€response€to€the€request.Ð ôG ÐAððs€request€to€C€is€reportable€by€C.Ð ÌðH ÐÌà ® à(xiv)€€A,€a€U.S.€freight€forwarder,€is€arrangingÐ | J Ðfor€the€shipment€of€U.S.€goods€to€boycottingÐ TxK Ðcountry€Y.€€The€manufacturer€supplies€A€with€allÐ ,PL Ðthe€necessary€documentation€to€accompany€theÐ  (M Ðshipment.€€Among€the€documents€supplied€by€theÐ Ü N Ðmanufacturer€is€his€certificate€that€he€himself€isÐ ´!ØO Ðnot€blacklisted.€€A€transmits€the€documentationÐ Œ"°P Ðsupplied€by€the€manufacturer.Ð d#ˆQ ÐÌAððs€action€in€merely€transmitting€documentsÐ %8S Ðreceived€from€the€manufacturer€is€not€reportable,Ð ì% T Ðbecause€A€has€received€no€request€to€comply€withÐ Ä&è U ÐYððs€boycott.Ð œ'À!V ÐÌà ® à(xv)€€Same€as€(xiv),€except€that€A€is€asked€byÐ L)p#X ÐU.S.€exporter€B€to€assume€the€responsibility€toÐ $*H$Y Ðassure€that€the€necessary€documentationÐ ü* %Z Ðaccompanies€the€shipment€whatever€thatÐ Ô+ø%[ Ðdocumentation€might€be.€€B€forwards€to€A€a€letterÐ ¬,Ð&\ Ðof€credit€which€requires€that€a€negative€certificateÐ Ü Ðof€origin€accompany€the€bill€of€lading.€€AÐ ´Ø Ðsupplies€a€positive€certificate€of€origin.Ð Œ° ÐÌBoth€A€and€B€must€report€receipt€of€the€letter€ofÐ < ` Ðcredit,€because€it€contains€a€request€to€both€ofÐ  8 Ðthem€to€comply€with€Yððs€boycott.Ð ì  ÐÌà F à(xvi)€€Same€as€(xiv),€except€that€theÐ œ À Ðmanufacturer€fails€to€supply€a€required€negativeÐ t ˜  Ðcertificate€of€origin,€and€A€is€subsequently€askedÐ Lp  Ðby€a€consular€official€of€Y€to€see€to€it€that€theÐ $H  Ðcertificate€is€supplied.€€A€supplies€a€positiveÐ ü  Ðcertificate€of€origin.Ð Ôø  ÐÌThe€consular€officialððs€request€to€A€is€reportableÐ „¨  Ðby€A,€because€A€was€asked€to€comply€with€YððsÐ \€  Ðboycott€requirements€by€supplying€the€negativeÐ 4X Ðcertificate€of€origin.Ð  0 ÐÌà F à(xvii)€€A,€a€U.S.€manufacturer,€is€shippingÐ ¼à Ðgoods€to€boycotting€country€Y.€€ArrangementsÐ ”¸ Ðhave€been€made€for€freight€forwarder€B€to€handleÐ l Ðthe€shipment€and€secure€all€necessary€shippingÐ Dh Ðcertifications.€€B€notes€that€the€letter€of€creditÐ @ Ðrequires€that€the€manufacturer€supply€a€negativeÐ ô Ðcertificate€of€origin€and€B€asks€A€to€do€so.€€AÐ Ìð Ðsupplies€a€positive€certificate€of€origin.Ð ¤È ÐÌBððs€request€to€A€is€reportable€by€A,€because€A€isÐ Tx Ðasked€to€comply€with€Yððs€boycott€requirementsÐ ,P Ðby€providing€the€negative€certificate.Ð  ( ÐÌà F à(xviii)€€A,€a€controlled€foreign€subsidiary€ofÐ ´!Ø! ÐU.S.€company€B,€is€a€resident€of€boycottingÐ Œ"°" Ðcountry€Y.€€A€is€engaged€in€oil€exploration€andÐ d#ˆ# Ðdrilling€operations€in€Y.€€In€placing€orders€forÐ <$`$ Ðdrilling€equipment€to€be€shipped€from€the€UnitedÐ %8% ÐStates,€A,€in€compliance€with€Yððs€laws,€selectsÐ ì% & Ðonly€those€suppliers€who€are€not€blacklisted.Ð Ä&è ' ÐÌAððs€action€in€choosing€non„blacklisted€suppliersÐ t(˜") Ðis€not€reportable,€because€A€has€not€received€aÐ L)p#* Ðrequest€to€comply€with€Yððs€boycott€in€makingÐ $*H$+ Ðthese€selections.Ð ü* %, ÐÌà F à(xix)€€A,€a€controlled€foreign€subsidiary€of€U.S.Ð ¬,Ð&. Ðcompany€B,€is€seeking€permission€to€do€businessÐ Ü. Ðin€boycotting€country€Y.€€Before€being€grantedÐ ´Ø/ Ðsuch€permission,€A€is€asked€to€sign€an€agreementÐ Œ°0 Ðto€comply€with€Yððs€boycott€laws.Ð dˆ1 ÐÌThe€request€to€A€is€reportable,€because€it€is€aÐ  83 Ðrequest€that€expressly€requires€compliance€withÐ ì 4 ÐYððs€boycott€law€and€is€received€in€connectionÐ Ä è5 Ðwith€Aððs€anticipated€business€in€Y.Ð œ À6 Ðà ® àà D àà Ú àà p àÌà ® à(xx)€€A,€a€U.S.€bank,€is€asked€by€a€firm€inÐ Lp8 Ðboycotting€country€Y€to€confirm€a€letter€of€creditÐ $H 9 Ðin€favor€of€B,€a€U.S.€company.€€The€letter€ofÐ ü : Ðcredit€calls€for€a€certificate€from€B€that€the€goodsÐ Ôø ; Ðto€be€supplied€are€not€produced€by€a€firmÐ ¬Ð < Ðblacklisted€by€Y.€€A€informs€B€of€the€letter€ofÐ „¨ = Ðcredit,€including€its€certification€condition,€andÐ \€ > Ðsends€B€a€copy.Ð 4X? ÐÌB€must€report€the€certification€request€containedÐ äA Ðin€the€letter€of€credit,€and€A€must€report€theÐ ¼àB Ðrequest€to€confirm€the€letter€of€credit€containingÐ ”¸C Ðthe€boycott€condition,€because€both€are€beingÐ lD Ðasked€to€comply€with€Yððs€boycott.Ð DhE ÐÌà ® à(xxi)€€Same€as€(xx),€except€that€the€letter€ofÐ ôG Ðcredit€calls€for€a€certificate€from€the€beneficiaryÐ ÌðH Ðthat€the€goods€will€not€be€shipped€on€a€vessel€thatÐ ¤ÈI Ðwill€call€at€a€port€in€boycotted€country€X€beforeÐ | J Ðmaking€delivery€in€Y.Ð TxK ÐÌThe€request€is€not€reportable,€because€it€is€aÐ  (M Ðrequest€of€a€type€deemed€by€this€section€to€be€inÐ Ü N Ðcommon€use€for€non-boycott€purposes.Ð ´!ØO ÐÌà ® à(xxii)€€A,€a€U.S.€company,€receives€a€letter€ofÐ d#ˆQ Ðcredit€from€boycotting€country€Y€stating€that€onÐ <$`R Ðno€condition€may€a€bank€blacklisted€by€Y€beÐ %8S Ðpermitted€to€negotiate€the€credit.Ð ì% T ÐÌAððs€receipt€of€the€letter€of€credit€is€reportable,Ð œ'À!V Ðbecause€it€contains€a€request€to€A€to€comply€withÐ t(˜"W ÐYððs€boycott€requirements.Ð L)p#X ÐÌà ® à(xxiii)€€A,€a€U.S.€bank,€receives€a€demand€draftÐ ü* %Z Ðfrom€B,€a€U.S.€€company,€in€connection€with€BððsÐ Ô+ø%[ Ðshipment€of€goods€to€boycotting€country€Y.€€TheÐ ¬,Ð&\ Ðdraft€contains€a€directive€that€it€is€valid€in€allÐ Ü Ðcountries€except€boycotted€country€X.Ð ´Ø ÐÌAððs€receipt€of€the€demand€draft€is€reportable,Ð dˆ Ðbecause€it€contains€a€request€to€A€to€comply€withÐ < ` ÐYððs€boycott€requirements.Ð  8 ÐÌà F à(xxiv)€€A,€a€U.S.€exporter,€receives€an€orderÐ Ä è Ðfrom€boycotting€country€Y.€€On€the€order€is€aÐ œ À Ðlegend€that€Aððs€goods,€invoices,€and€packagingÐ t ˜  Ðmust€not€bear€a€six-pointed€star€or€other€symbolÐ Lp  Ðof€boycotted€country€X.Ð $H  ÐÌAððs€receipt€of€the€order€is€reportable,€because€itÐ Ôø  Ðcontains€a€request€to€comply€with€Yððs€boycottÐ ¬Ð  Ðrequirements.Ð „¨  ÐÌà F à(xxv)€€Same€as€(xxiv),€except€the€order€containsÐ 4X Ða€statement€that€goods€exported€must€notÐ  0 Ðrepresent€part€of€war€reparations€to€boycottedÐ ä Ðcountry€X.Ð ¼à ÐÌAððs€receipt€of€the€order€is€reportable,€because€itÐ l Ðcontains€a€request€to€A€to€comply€with€YððsÐ Dh Ðboycott€requirements.Ð @ ÐÌà F à(xxvi)€€A,€a€U.S.€contractor,€is€negotiating€withÐ Ìð Ðboycotting€country€Y€to€build€a€school€in€Y.€Ð ¤È ÐDuring€the€course€of€the€negotiations,€Y€suggestsÐ |  Ðthat€one€of€the€terms€of€the€construction€contractÐ Tx Ðbe€that€A€agree€not€to€import€materials€producedÐ ,P Ðin€boycotted€country€X.€€It€is€Aððs€company€policyÐ  ( Ðnot€to€agree€to€such€a€contractual€clause,€and€AÐ Ü   Ðsuggests€that€instead€it€agree€that€all€of€theÐ ´!Ø! Ðnecessary€materials€will€be€obtained€from€U.S.Ð Œ"°" Ðsuppliers.€€Y€agrees€to€Aððs€suggestion€and€aÐ d#ˆ# Ðcontract€is€executed.Ð <$`$ ÐÌA€has€received€a€reportable€request,€but,€forÐ ì% & Ðpurposes€of€reporting,€the€request€is€deemed€to€beÐ Ä&è ' Ðreceived€when€the€contract€is€executed.Ð œ'À!( ÐÌà F à(xxvii)€€Same€as€(xxvi),€except€Y€does€notÐ L)p#* Ðaccept€Aððs€suggested€alternative€clause€andÐ $*H$+ Ðnegotiations€break€off.Ð ü* %, ÐÌAððs€receipt€of€Yððs€request€is€reportable.€ForÐ ¬,Ð&. Ðpurposes€of€reporting,€it€makes€no€difference€thatÐ Ü. ÐA€was€not€successful€in€the€negotiations.€€TheÐ ´Ø/ Ðrequest€is€deemed€to€be€received€at€the€time€theÐ Œ°0 Ðnegotiations€break€off.Ð dˆ1 ÐÌà ® à(xxviii)€€A,€a€U.S.€insurance€company,€isÐ  83 Ðinsuring€the€shipment€of€drilling€equipment€toÐ ì 4 Ðboycotting€country€Y.€€The€transaction€is€beingÐ Ä è5 Ðfinanced€by€a€letter€of€credit€which€requires€thatÐ œ À6 ÐA€certify€that€it€is€not€blacklisted€by€Y.€€FreightÐ t ˜7 Ðforwarder€B€asks€A€to€supply€the€certification€inÐ Lp8 Ðorder€to€satisfy€the€requirements€of€the€letter€ofÐ $H 9 Ðcredit.Ð ü : ÐÌThe€request€to€A€is€reportable€by€A,€because€it€isÐ ¬Ð < Ða€request€to€comply€with€Yððs€boycottÐ „¨ = Ðrequirements.Ð \€ > ÐÌÔ‡%&rf%%ß&rfÔà ® à(xxix)€€A,€a€U.S.€manufacturer,€is€engaged€fromÐ  0@ Ðtime-to-time€in€supplying€drilling€rigs€to€companyÐ äA ÐB€in€boycotting€country€Y.€€B€insists€that€itsÐ ¼àB Ðsuppliers€sign€contracts€which€provide€that,€evenÐ ”¸C Ðafter€title€passes€from€the€supplier€to€B,€theÐ lD Ðsupplier€will€bear€the€risk€of€loss€and€indemnify€BÐ DhE Ðif€goods€which€the€supplier€has€furnished€areÐ @F Ðdenied€entry€into€Y€for€whatever€reason.€€AÐ ôG Ðknows€or€has€reason€to€know€that€this€contractualÐ ÌðH Ðprovision€is€required€by€B€because€of€Yððs€boycott,Ð ¤ÈI Ðand€that€B€has€been€using€the€provision€sinceÐ | J Ð1977.€€A€receives€an€order€from€B€which€containsÐ TxK Ðsuch€a€clause.Ð ,PL ÐÌBððs€request€is€not€reportable€by€A,€because€theÐ Ü N Ðrequest€is€deemed€to€be€not€reportable€by€theseÐ ´!ØO Ðregulations€if€the€provision€was€in€use€by€B€priorÐ Œ"°P Ðto€January€18,€1978.Ð d#ˆQ ÐÌà ® à(xxx)€€Same€as€(xxix),€except€that€A€does€notÐ %8S Ðknow€when€B€began€using€the€provision.Ð ì% T ÐÌUnless€A€receives€information€from€B€that€BÐ œ'À!V Ðintroduced€the€term€prior€to€January€18,€1978,€AÐ t(˜"W Ðmust€report€receipt€of€the€request.Ô#†ß&rf%%%&rfDÁ#ÔÐ L)p#X ÐÌà ® à(xxxi)€€A,€a€U.S.€citizen,€is€a€shipping€clerk€forÐ ü* %Z ÐB,€a€U.S.€manufacturing€company.€€In€the€courseÐ Ô+ø%[ Ðof€his€employment,€A€receives€an€order€for€goodsÐ ¬,Ð&\ Ðfrom€boycotting€country€Y.€€The€order€specifiesÐ Ü Ðthat€none€of€the€components€of€the€goods€is€to€beÐ ´Ø Ðfurnished€by€blacklisted€firms.Ð Œ° ÐÌB€must€report€the€request€received€by€itsÐ < ` Ðemployee,€A,€acting€in€the€scope€of€hisÐ  8 Ðemployment.€€Although€A€is€a€U.S.€person,€suchÐ ì  Ðan€individual€does€not€have€a€separate€obligationÐ Ä è Ðto€report€requests€received€by€him€in€his€capacityÐ œ À Ðas€an€employee€of€B.Ð t ˜  ÐÌà F à(xxxii)€€U.S.€exporter€A€is€negotiating€aÐ $H  Ðtransaction€with€boycotting€country€Y.€€A€knowsÐ ü  Ðthat€at€the€conclusion€of€the€negotiations€he€willÐ Ôø  Ðbe€asked€by€Y€to€supply€certain€boycott-relatedÐ ¬Ð  Ðinformation€and€that€such€a€request€is€reportable.€Ð „¨  ÐIn€an€effort€to€forestall€the€request€and€therebyÐ \€  Ðavoid€having€to€file€a€report,€A€supplies€theÐ 4X Ðinformation€in€advance.Ð  0 ÐÌA€is€deemed€to€have€received€a€reportableÐ ¼à Ðrequest.Ð ”¸ ÐÌà F à(xxxiii)€€A,€a€controlled€foreign€affiliate€of€U.S.Ð Dh Ðcompany€B,€receives€an€order€for€computers€fromÐ @ Ðboycotting€country€Y€and€obtains€componentsÐ ô Ðfrom€the€United€States€for€the€purpose€of€fillingÐ Ìð Ðthe€order.€€Y€instructs€A€that€a€negative€certificateÐ ¤È Ðof€origin€must€accompany€the€shipment.Ð |  ÐÌYððs€instruction€to€A€regarding€the€negativeÐ ,P Ðcertificate€of€origin€is€reportable€by€A.€€Moreover,Ð  ( ÐA€may€designate€B€or€any€other€person€to€reportÐ Ü   Ðon€its€behalf.€€However,€A€remains€liable€for€anyÐ ´!Ø! Ðfailure€to€report€or€for€any€representations€madeÐ Œ"°" Ðon€its€behalf.Ð d#ˆ# ÐÐ <$`$ ÐÔ‡%&rf%%ß&rfÔà ® à(xxxiv)€€U.S.€exporter€A,€in€shipping€goods€toÐ Ü$ Ðboycotting€country€Y,€receives€a€request€from€theÐ ´Ø% Ðcustomer€in€Y€to€state€on€the€bill€of€lading€thatÐ Œ°& Ðthe€vessel€is€allowed€to€enter€Yððs€ports.€€TheÐ dˆ' Ðrequest€further€states€that€a€certificate€from€theÐ < `( Ðowner€or€master€of€the€vessel€to€that€effect€isÐ  8) Ðacceptable.Ð ì * ÐÌThe€request€A€received€from€his€customer€in€Y€isÐ œ À, Ðnot€reportable€because€it€is€a€request€of€a€typeÐ t ˜- Ðdeemed€to€be€not€reportable€by€these€regulations.€Ð Lp. Ð(A€may€not€make€such€a€statement€on€the€bill€ofÐ $H / Ðlading€himself,€if€he€knows€or€has€reason€to€knowÐ ü 0 Ðit€is€requested€for€a€boycott€purpose.)Ð Ôø 1 ÐÌà ® à(xxxv)€€U.S.€exporter€A,€in€shipping€goods€toÐ „¨ 3 Ðboycotting€country€Y,€receives€a€request€from€theÐ \€ 4 Ðcustomer€in€Y€to€furnish€a€certificate€from€theÐ 4X5 Ðowner€of€the€vessel€that€the€vessel€is€permitted€toÐ  06 Ðcall€at€Yððs€ports.Ð ä7 ÐÌThe€request€A€received€from€his€customer€in€Y€isÐ ”¸9 Ðnot€reportable€because€it€is€a€request€of€a€typeÐ l: Ðdeemed€to€be€not€reportable€by€these€regulations.Ð Dh; ÐÔ#†ß&rf%%%&rfíÏ#ÔÌà ® à(xxxvi)€€U.S.€exporter€A,€in€shipping€goods€toÐ ô= Ðboycotting€country€Y,€receives€a€request€from€theÐ Ìð> Ðcustomer€in€Y€to€furnish€a€certificate€from€theÐ ¤È? Ðinsurance€company€indicating€that€the€companyÐ | @ Ðhas€a€duly€authorized€representative€in€country€YÐ TxA Ðand€giving€the€name€of€that€representative.Ð ,PB ÐÌThe€request€A€received€from€his€customer€in€Y€isÐ Ü D Ðnot€reportable€if€it€was€received€after€the€effectiveÐ ´!ØE Ðdate€of€these€rules,€because€it€is€a€request€of€aÐ Œ"°F Ðtype€deemed€to€be€not€reportable€by€theseÐ d#ˆG Ðregulations.Ð <$`H ÐÒ5°(#°(#X°ÀD5ÒÐ  ì% H ÐØGØÓ  ÓÓ5‡#Ü5Óà@@vv#ìàò òINTERPRETATIONSó óÐ  1 ÐÓâØÓÓ@†6à/:!!11!îØ@ÓÌÖ€üà°ÖÒ(€X€°(#°(#(ÒIt€has€come€to€the€Departmentððs€attention€thatÐ î Ðsome€U.S.€persons€are€being€or€may€be€asked€toÐ Æê Ðcomply€with€new€boycotting€countryÐ ž  Ðrequirements€with€respect€to€shipping€andÐ v š Ðinsurance€certifications€and€certificates€of€origin.€Ð N r ÐIt€has€also€come€to€the€Departmentððs€attentionÐ & J Ðthat€some€U.S.€persons€are€being€or€may€be€askedÐ þ " Ðto€agree€to€new€contractual€provisions€inÐ Ö ú  Ðconnection€with€certain€foreign€government€orÐ ®Ò  Ðforeign€government€agency€contracts.€€In€order€toÐ †ª  Ðmaximize€its€guidance€with€respect€to€section€8€ofÐ ^‚  Ðthe€Export€Administration€Act€of€1979,€asÐ 6Z  Ðamended€(50€U.S.C.€app.€2407)€and€part€760€ofÐ 2  Ðthe€EAR,€the€Department€hereby€sets€forth€itsÐ æ  Ðviews€on€these€certifications€and€contractualÐ ¾â  Ðclauses.׃)×Ý ƒ#ÃÝòòÚ  Ú1Ú  ÚóóÝ  Ý×  ×Ð –º ÐÌà@‰‰¸ àI.€CERTIFICATIONSˆÐ Fj ÐÌðð760.2(d)€of€this€part€prohibits€a€U.S.€personÐ ö Ðfrom€furnishing€or€knowingly€agreeing€to€furnish:Ð Îò ÐÌð ðInformation€concerning€his€or€any€other€personððsÐ ~¢ Ðpast,€present€or€proposed€business€relationships:Ð Vz ÐÌà F à(i)€€With€or€in€a€boycotted€country;Ð * ÐÌà F à(ii)€€With€any€business€concern€organized€underÐ ¶Ú Ðthe€laws€of€a€boycotted€country;Ð Ž² ÐÌà F à(iii)€€With€any€national€or€resident€of€aÐ >!b  Ðboycotted€country;€orÐ ":! ÐÌà F à(iv)€€With€any€other€person€who€is€known€orÐ Æ#ê# Ðbelieved€to€be€restricted€from€having€any€businessÐ ž$Â$ Ðrelationship€with€or€in€a€boycotting€country.ððÐ v%š% ÐÌThis€prohibition,€like€all€others€under€part€760,Ð &'J!' Ðapplies€only€with€respect€to€a€U.S.€personððsÐ î' Ðactivities€in€the€interstate€or€foreign€commerce€ofÐ Æê( Ðthe€United€States€and€only€when€such€activitiesÐ ž Â) Ðare€undertaken€with€intent€to€comply€with,Ð v š* Ðfurther,€or€support€an€unsanctioned€foreignÐ N r+ Ðboycott.€(ðð760.2(d)(5)€of€this€part.)Ð & J, ÐÌThis€prohibition€does€not€apply€to€the€furnishingÐ Ö ú. Ðof€normal€business€information€in€a€commercialÐ ®Ò/ Ðcontext.€(€ðð760.2(d)(3)€of€this€part).€€NormalÐ †ª 0 Ðbusiness€information€furnished€in€a€commercialÐ ^‚ 1 Ðcontext€does€not€cease€to€be€such€simply€becauseÐ 6Z 2 Ðthe€party€soliciting€the€information€may€be€aÐ 2 3 Ðboycotting€country€or€a€national€or€residentÐ æ 4 Ðthereof.€€If€the€information€is€of€a€type€which€isÐ ¾â 5 Ðgenerally€sought€for€a€legitimate€business€purposeÐ –º6 Ð(such€as€determining€financial€fitness,€technicalÐ n’7 Ðcompetence,€or€professional€experience),€theÐ Fj8 Ðinformation€may€be€furnished€even€if€theÐ B9 Ðinformation€could€be€used,€or€without€theÐ ö: Ðknowledge€of€the€person€supplying€theÐ Îò; Ðinformation€is€intended€to€be€used,€for€boycottÐ ¦Ê< Ðpurposes.€€(ðð760.2(d)(4)€of€this€part).Ð ~¢= ÐÌThe€new€certification€requirements€and€theÐ .R? ÐDepartmentððs€interpretation€of€the€applicability€ofÐ *@ Ðpart€760€thereto€are€as€follows:Ð ÞA ÐÌA.€òòCertificate€of€originóó.€€A€certificate€of€origin€isÐ Ž²C Ðto€be€issued€by€the€supplier€or€exporting€companyÐ f ŠD Ðand€authenticated€by€the€exporting€country,Ð >!bE Ðattesting€that€the€goods€exported€to€the€boycottingÐ ":F Ðcountry€are€of€purely€indigenous€origin,€andÐ î"G Ðstating€the€name€of€the€factory€or€theÐ Æ#êH Ðmanufacturing€company.€To€the€extent€that€theÐ ž$ÂI Ðgoods€as€described€on€the€certificate€of€origin€areÐ v%šJ Ðnot€solely€and€exclusively€products€of€theirÐ N&r K Ðcountry€of€origin€indicated€thereon,€a€declarationÐ &'J!L Ðmust€be€appended€to€the€certificate€of€originÐ þ'""M Ðgiving€the€name€of€the€supplier/manufacturer€andÐ Ö(ú"N Ðdeclaring:Ð ®)Ò#O ÐÌà0 ® àð ðThe€undersigned,€____________,€does€herebyÐ ^+‚%Q Ðdeclare€on€behalf€of€the€above„named€supƒÐ 6,Z&R®(#®(# Ðplier/manufacturer,€that€certain€parts€orÐ Ü Ðcomponents€of€the€goods€described€in€theÐ ´Ø Ðattached€certificate€of€origin€are€the€products€ofÐ Œ° Ðsuch€country€or€countries,€other€than€theÐ dˆ Ðcountry€named€therein€as€specifically€indicatedÐ < ` Ðhereunder:Ð 8FÀFÀ ÐÌà0 F àòòCountry€of€origin€and€percentage€of€value€ofÐ Ä è Ðparts€or€components€relative€to€total€shipmentóóМ ÀFÀFÀ ÐÌà0 F à1.€____________________________________.ÐLp FÀFÀ ÐÌà F à2.€____________________________________.Ð ü  ÐÌà0 F à3.€____________________________________.ЬРFÀFÀ ÐÌà0 F àDated:€______________________.Ð\€ FÀFÀ ÐÌà0 F àSignature€_________________________.Ð 0FÀFÀ ÐÌà0 F àSworn€to€before€me,€this€______€day€ofÐ ¼à Ð____________,€19___.€Notary€Seal.ððД¸FÀFÀ Ðà@¸ ¸ ¸ àˆÌÌà@®®¸ àINTERPRETATIONˆÐ @ ÐÌIt€is€the€Departmentððs€position€that€furnishing€aÐ Ìð Ðpositive€certificate€of€origin,€such€as€the€one€setÐ ¤È Ðout€above,€falls€within€the€exception€contained€inÐ |  Ððð760.3(c)€of€this€part€for€compliance€with€theÐ Tx Ðimport€and€shipping€document€requirements€of€aÐ ,P Ðboycotting€country.€€See€ðð760.3(c)€of€this€partÐ  ( Ðand€examples€(i)€and€(ii)€thereunder.Ð Ü   ÐÌB.€òòShipping€certificateóó.€€A€certificate€must€beÐ Œ"°" Ðappended€to€the€bill€of€lading€stating:€(1)€Name€ofÐ d#ˆ# Ðvessel;€(2)€Nationality€of€vessel;€and€(3)€Owner€ofÐ <$`$ Ðvessel,€and€declaring:Ð %8% ÐÌà0 F àð ðThe€undersigned€does€hereby€declare€onÐ Ä&è ' Ðbehalf€of€the€owner,€master,€or€agent€of€theÐ œ'À!( Ðabove„named€vessel€that€said€vessel€is€notÐ t(˜") Ðregistered€in€the€boycotted€country€or€owned€byÐ L)p#* Ðnationals€or€residents€of€the€boycotted€countryÐ $*H$+ Ðand€will€not€call€at€or€pass€through€anyÐ ü* %, Ðboycotted€country€port€enroute€to€its€boycottingÐ Ô+ø%- Ðcountry€destination.Ь,Ð&.FÀFÀ Їà0 ® àð ðThe€undersigned€further€declares€that€saidÐ Ü. Ðvessel€is€otherwise€eligible€to€enter€into€theÐ ´Ø/ Ðports€of€the€boycotting€country€in€conformityÐ Œ°0 Ðwith€its€laws€and€regulations.Ðdˆ1®(#®(# ÐÌà0 ® àSworn€to€before€me,€this€_____€day€ofÐ  83 Ð_______,€19€___.€Notary€Seal.ððÐì 4®(#®(# Ðà ® àà D àà Ú àà p àà Ð àÌÌÓ  ÓINTERPRETATIONÐ t ˜7 ÐÓ—÷ÓÌÔ‡%&rf%%ß&rfÔIt€is€the€Departmentððs€position€that€furnishing€aÐ $H 9 Ðcertificate,€such€as€the€one€set€out€above,€stating:Ð ü : Ð(1)€The€name€of€the€vessel,€(2)€The€nationality€ofÐ Ôø ; Ðthe€vessel,€and€(3)€The€owner€of€the€vessel€andÐ ¬Ð < Ðfurther€declaring€that€the€vessel:€(a)€Is€notÐ „¨ = Ðregistered€in€a€boycotted€country,€(b)€Is€notÐ \€ > Ðowned€by€nationals€or€residents€of€a€boycottedÐ 4X? Ðcountry,€and€(c)€Will€not€call€at€or€pass€through€aÐ  0@ Ðboycotted€country€port€enroute€to€its€destinationÐ äA Ðin€a€boycotting€country€falls€within€the€exceptionÐ ¼àB Ðcontained€in€ðð760.3(c)€for€compliance€with€theÐ ”¸C Ðimport€and€shipping€document€requirements€of€aÐ lD Ðboycotting€country.€€See€ðð760.3(c)€and€examplesÐ DhE Ð(vii),€(viii),€and€(ix)€thereunder.Ð @F ÐÌIt€is€also€the€Departmentððs€position€that€theÐ ÌðH Ðowner,€charterer,€or€master€of€a€vessel€may€certifyÐ ¤ÈI Ðthat€the€vessel€is€ð ðeligibleðð€or€ð ðotherwise€eligibleððÐ | J Ðto€enter€into€the€ports€of€a€boycotting€country€inÐ TxK Ðconformity€with€its€laws€and€regulations.€Ð ,PL ÐFurnishing€such€a€statement€pertaining€to€oneððsÐ  (M Ðown€eligibility€offends€no€prohibition€under€thisÐ Ü N Ðpart€760.€€See€ðð760.2(f),€example€(xiv).Ð ´!ØO ÐÌOn€the€other€hand,€where€a€boycott€is€in€force,€aÐ d#ˆQ Ðdeclaration€that€a€vessel€is€ð ðeligibleðð€orÐ <$`R Ðð ðotherwise€eligibleðð€to€enter€the€ports€of€theÐ %8S Ðboycotting€country€necessarily€conveys€theÐ ì% T Ðinformation€that€the€vessel€is€not€blacklisted€orÐ Ä&è U Ðotherwise€restricted€from€having€a€businessÐ œ'À!V Ðrelationship€with€the€boycotting€country.€€SeeÐ t(˜"W Ððð760.3(c),€examples€(vi),€(xi),€and€(xii).€€Where€aÐ L)p#X Ðperson€other€than€the€vesselððs€owner,€charterer,€orÐ $*H$Y Ðmaster€furnishes€such€a€statement,€that€isÐ ü* %Z Ðtantamount€to€his€furnishing€a€statement€that€he€isÐ Ô+ø%[ Ðnot€doing€business€with€a€blacklisted€person€or€isÐ ¬,Ð&\ Ðdoing€business€only€with€non„blacklisted€persons.€Ð Ü ÐTherefore,€it€is€the€Departmentððs€position€thatÐ ´Ø Ðfurnishing€such€a€certification€(which€does€notÐ Œ° Ðreflect€customary€international€commercialÐ dˆ Ðpractice)€by€anyone€other€than€the€owner,Ð < ` Ðcharterer,€or€master€of€a€vessel€would€fall€withinÐ  8 Ðthe€prohibition€set€forth€in€ðð760.2(d)€unless€it€isÐ ì  Ðclear€from€all€the€facts€and€circumstances€that€theÐ Ä è Ðcertification€is€not€required€for€a€boycott€reason.€Ð œ À ÐSee€ðð760.2(d)(3)€and€(4).€€See€also€Part€A.,Ð t ˜  Ðð ðPermissible€Furnishing€of€Information,ðð€ofÐ Lp  ÐSupplement€No.€5€to€this€part.Ð $H  ÐÔ#†ß&rf%%%&rf×÷#ÔÌC.€òòInsurance€certificateóó.€€A€certificate€must€beÐ Ôø  Ðappended€to€the€insurance€policy€stating:€(1)Ð ¬Ð  ÐName€of€insurance€company;€(2)€Address€of€itsÐ „¨  Ðprincipal€office;€and€(3)€Country€of€itsÐ \€  Ðincorporation,€and€declaring:Ð 4X ÐÌà0 F àð ðThe€undersigned,€_____________________,Ð ä Ðdoes€hereby€certify€on€behalf€of€the€above„Ð ¼à Ðnamed€insurance€company€that€the€saidÐ ”¸ Ðcompany€has€a€duly€qualified€and€appointedÐ l Ðagent€or€representative€in€the€boycottingÐ Dh Ðcountry€whose€name€and€address€appear€below:Ð@FÀFÀ ÐÌà0 F àName€of€agent/representative€and€address€in€theÐ Ìð Ðboycotting€country.ФÈFÀFÀ ÐÌà0 F àSworn€to€before€me€this€____€day€of€________,Ð Tx Ð19€____.€Notary€Seal.ððÐ,PFÀFÀ ÐÌÌà@®®¸ àINTERPRETATIONˆÐ ´!Ø! ÐÌÔ‡%&rf%%ß&rfÔIt€is€the€Departmentððs€position€that€furnishing€theÐ d#ˆ# Ðname€of€the€insurance€company€falls€within€theÐ <$`$ Ðexception€contained€in€ðð760.3(c)€for€complianceÐ %8% Ðwith€the€import€and€shipping€documentÐ ì% & Ðrequirements€of€a€boycotting€country.€€SeeÐ Ä&è ' Ððð760.3(c)(1)(v)€and€examples€(v)€and€(x)Ð œ'À!( Ðthereunder.€€In€addition,€it€is€the€DepartmentððsÐ t(˜") Ðposition€that€furnishing€a€certificate,€such€as€theÐ L)p#* Ðone€set€out€above,€stating€the€address€of€theÐ $*H$+ Ðinsurance€companyððs€principal€office€and€itsÐ ü* %, Ðcountry€of€incorporation€offends€no€prohibitionÐ Ô+ø%- Ðunder€this€part€760€unless€the€U.S.€personÐ ¬,Ð&. Ðfurnishing€the€certificate€knows€or€has€reason€toÐ Ü. Ðknow€that€the€information€is€sought€for€theÐ ´Ø/ Ðpurpose€of€determining€that€the€insuranceÐ Œ°0 Ðcompany€is€neither€headquartered€norÐ dˆ1 Ðincorporated€in€a€boycotted€country.€€SeeÐ < `2 Ððð760.2(d)(1)(i).Ð  83 ÐÌIt€is€also€the€Departmentððs€position€that€theÐ Ä è5 Ðinsurer,€himself,€may€certify€that€he€has€a€dulyÐ œ À6 Ðqualified€and€appointed€agent€or€representative€inÐ t ˜7 Ðthe€boycotting€country€and€may€furnish€the€nameÐ Lp8 Ðand€address€of€his€agent€or€representative.€Ð $H 9 ÐFurnishing€such€a€statement€pertaining€to€oneððsÐ ü : Ðown€status€offends€no€prohibition€under€this€partÐ Ôø ; Ð760.€€See€ðð760.2(f),€example€(xiv).Ð ¬Ð < ÐÌOn€the€other€hand,€where€a€boycott€is€in€force,€aÐ \€ > Ðdeclaration€that€an€insurer€ð ðhas€a€duly€qualifiedÐ 4X? Ðand€appointed€agent€or€representativeðð€in€theÐ  0@ Ðboycotting€country€necessarily€conveys€theÐ äA Ðinformation€that€the€insurer€is€not€blacklisted€orÐ ¼àB Ðotherwise€restricted€from€having€a€businessÐ ”¸C Ðrelationship€with€the€boycotting€country.€€SeeÐ lD Ððð760.3(c),€example€(v).€€Therefore,€it€is€theÐ DhE ÐDepartmentððs€position€that€furnishing€such€aÐ @F Ðcertification€by€anyone€other€than€the€insurerÐ ôG Ðwould€fall€within€the€prohibition€set€forth€inÐ ÌðH Ððð760.2(d)€unless€it€is€clear€from€all€the€facts€andÐ ¤ÈI Ðcircumstances€that€the€certification€is€not€requiredÐ | J Ðfor€a€boycott€reason.€€See€ðð760.2(d)(3)€and€(4).€Ð TxK ÐÔ#†ß&rf%%%&rf“#Ôà ® àà D àà Ú àà p àà Ð àÌà@__1 àII.€CONTRACTUAL€CLAUSESˆÐ  (M ÐÌThe€new€contractual€requirements€and€theÐ ´!ØO ÐDepartmentððs€interpretation€of€the€applicability€ofÐ Œ"°P Ðpart€760€thereto€are€as€follows:Ð d#ˆQ ÐÌA.€€òòContractual€clause€regarding€import€laws€ofÐ %8S Ðboycotting€countryóó.€€€ð ðIn€connection€with€theÐ ì% T Ðperformance€of€this€contract€theÐ Ä&è U ÐContractor/Supplier€acknowledges€that€the€importÐ œ'À!V Ðand€customs€laws€and€regulations€of€theÐ t(˜"W Ðboycotting€country€shall€apply€to€the€furnishingÐ L)p#X Ðand€shipment€of€any€products€or€componentsÐ $*H$Y Ðthereof€to€the€boycotting€country.€€TheÐ ü* %Z ÐContractor/Supplier€specifically€acknowledgesÐ Ô+ø%[ Ðthat€the€aforementioned€import€and€customs€lawsÐ ¬,Ð&\ Ðand€regulations€of€the€boycotting€countryÐ Ü Ðprohibit,€among€other€things,€the€importation€intoÐ ´Ø Ðthe€boycotting€country€of€products€or€componentsÐ Œ° Ðthereof:€(1)€Originating€in€the€boycotted€country;Ð dˆ Ð(2)€Manufactured,€produced,€or€furnished€byÐ < ` Ðcompanies€organized€under€the€laws€of€theÐ  8 Ðboycotted€country;€and€(3)€Manufactured,Ð ì  Ðproduced,€or€furnished€by€nationals€or€residentsÐ Ä è Ðof€the€boycotted€country.ððÐ œ À ÐÌÌà@®®¸ àINTERPRETATIONˆÐ $H  ÐÌÔ‡%&rf%%ß&rfÔIt€is€the€Departmentððs€position€that€an€agreement,Ð Ôø  Ðsuch€as€the€one€set€out€in€the€first€sentence€above,Ð ¬Ð  Ðthat€the€import€and€customs€requirements€of€aÐ „¨  Ðboycotting€country€shall€apply€to€the€performanceÐ \€  Ðof€a€contract€does€not,€in€and€of€itself,€offend€anyÐ 4X Ðprohibition€under€this€part€760.€€See€ðð760.2(a)(5)Ð  0 Ðand€example€(iii)€under€ð ðExamples€of€AgreementsÐ ä ÐTo€Refuse€To€Do€Business.ðð€€It€is€also€theÐ ¼à ÐDepartmentððs€position€that€an€agreement€toÐ ”¸ Ðcomply€generally€with€the€import€and€customsÐ l Ðrequirements€of€a€boycotting€country€does€not,€inÐ Dh Ðand€of€itself,€offend€any€prohibition€under€thisÐ @ Ðpart€760.€€See€ðð760.2(a)(5)€and€examples€(iv)€andÐ ô Ð(v)€under€ð ðExamples€of€Agreements€To€RefuseÐ Ìð ÐTo€Do€Business.ðð€In€addition,€it€is€theÐ ¤È ÐDepartmentððs€position€that€an€agreement,€such€asÐ |  Ðthe€one€set€out€in€the€second€sentence€above,€toÐ Tx Ðcomply€with€the€boycotting€countryððs€import€andÐ ,P Ðcustoms€requirements€prohibiting€the€importationÐ  ( Ðof€products€or€components:€(1)€Originating€in€theÐ Ü   Ðboycotted€country;€(2)€Manufactured,€produced,Ð ´!Ø! Ðor€furnished€by€companies€organized€under€theÐ Œ"°" Ðlaws€of€the€boycotted€country;€or€(3)Ð d#ˆ# ÐManufactured,€produced,€or€furnished€byÐ <$`$ Ðnationals€or€residents€of€the€boycotted€countryÐ %8% Ðfalls€within€the€exception€contained€in€ðð760.3(a)Ð ì% & Ðfor€compliance€with€the€import€requirements€of€aÐ Ä&è ' Ðboycotting€country.€€See€ðð760.3(a)€and€exampleÐ œ'À!( Ð(ii)€thereunder.Ð Ü( ÐÌThe€Department€notes€that€a€United€States€personÐ Œ°* Ðmay€not€furnish€a€negative€certification€regardingÐ dˆ+ Ðthe€origin€of€goods€or€their€components€evenÐ < `, Ðthough€the€certification€is€furnished€in€response€toÐ  8- Ðthe€import€and€shipping€document€requirementsÐ ì . Ðof€the€boycotting€country.€€See€ðð760.3(c)€andÐ Ä è/ Ðexamples€(i)€and€(ii)€thereunder,€and€ðð760.3(a)Ð œ À0 Ðand€example€(ii)€thereunder.Ô#†ß&rf%%%&rf‹#ÔÐ t ˜1 ÐÌB.€€òòContractual€clause€regarding€unilateral€andÐ $H 3 Ðspecific€selectionóó.€€ð ðThe€Government€of€theÐ ü 4 Ðboycotting€country€(or€the€First€Party),€in€itsÐ Ôø 5 Ðexclusive€power,€reserves€its€right€to€make€theÐ ¬Ð 6 Ðfinal€unilateral€and€specific€selection€of€anyÐ „¨ 7 Ðproposed€carriers,€insurers,€suppliers€of€servicesÐ \€ 8 Ðto€be€performed€within€the€boycotting€country,€orÐ 4X9 Ðof€specific€goods€to€be€furnished€in€accordanceÐ  0: Ðwith€the€terms€and€conditions€of€this€contract.ðð€Ð ä; Ðà@  < àˆÌÌà@5 àINTERPRETATIONˆÐ l> ÐÌIt€is€the€Departmentððs€position€that€an€agreement,Ð @@ Ðsuch€as€the€one€set€out€above,€falls€within€theÐ ôA Ðexception€contained€in€ðð760.3(d)€of€this€part€forÐ ÌðB Ðcompliance€with€unilateral€selections.€€However,Ð ¤ÈC Ðthe€Department€notes€that€whether€a€U.S.€personÐ | D Ðmay€subsequently€comply€or€agree€to€complyÐ TxE Ðwith€any€particular€selection€depends€uponÐ ,PF Ðwhether€that€selection€meets€all€the€requirementsÐ  (G Ðcontained€in€ðð760.3(d)€of€this€part€for€complianceÐ Ü H Ðwith€unilateral€selections.€€For€example,€theÐ ´!ØI Ðparticular€selection€must€be€unilateral€andÐ Œ"°J Ðspecific,€particular€goods€must€be€specificallyÐ d#ˆK Ðidentifiable€as€to€their€source€or€origin€at€the€timeÐ <$`L Ðof€their€entry€into€the€boycotting€country,€and€allÐ %8M Ðother€requirements€contained€in€ðð760.3(d)€of€thisÐ ì% N Ðpart€must€be€observed.Ð Ä&è O ÐÐ  œ'À!P ÐØØÓ  ÓÓ5‡# Ü5ÓÖ€?ü°ÖÒ(€X€0°À°À(Òà@@©©#ìàò òINTERPRETATIONó óÐ  1 ÐÓª*ÓÓ@†à/¼:!!11!¶*@ÓÌÒ(€X€°(#°(#(ÒThe€Department€hereby€sets€forth€its€views€onÐ î Ðwhether€the€furnishing€of€certain€shipping€andÐ Æê Ðinsurance€certificates€in€compliance€withÐ ž  Ðboycotting€country€requirements€violates€theÐ v š Ðprovisions€of€section€8€of€the€ExportÐ N r ÐAdministration€Act€of€1979,€as€amended€(50Ð & J ÐU.S.C.€app.€2407)€and€part€760€of€the€EAR׃+×Ý ƒ#ÃÝòòÚ  Ú2Ú  ÚóóÝ  Ý×  ×,€asÐ þ " Ðfollows:Ð Ö ú  ÐÌà F à(i)€€ð ðThe€owner,€charterer€or€master€of€a€vesselÐ †ª  Ðmay€certify€that€the€vessel€is€ððeligibleðð€orÐ ^‚  Ðððotherwise€eligibleðð€to€enter€into€the€ports€of€aÐ 6Z  Ðboycotting€country€in€conformity€with€its€lawsÐ 2  Ðand€regulations;ðð€€Ð æ  ÐÌà F à(ii)€€ð ðThe€insurer,€himself,€may€certify€that€heÐ –º Ðhas€a€duly€qualified€and€appointed€agent€orÐ n’ Ðrepresentative€in€the€boycotting€country€and€mayÐ Fj Ðfurnish€the€name€and€address€of€his€agent€orÐ B Ðrepresentative.ððÐ ö ÐÌFurnishing€such€certifications€by€anyone€otherÐ ¦Ê Ðthan:Ð ~¢ ÐÌà F à(i)€€The€owner,€charterer€or€master€of€a€vessel,Ð .R ÐorÐ * ÐÌà F à(ii)€€The€insurer€would€fall€within€theÐ ¶Ú Ðprohibition€set€forth€in€ðð760.2(d)€of€this€part,Ð Ž² Ðð ðunless€it€is€clear€from€all€the€facts€andÐ f Š Ðcircumstances€that€these€certifications€are€notÐ >!b  Ðrequired€for€a€boycott€reason.ðð€€See€ðð760.2(d)(3)Ð ":! Ðand€(4)€of€this€part.Ð î"" ÐÌThe€Department€has€received€from€the€KingdomÐ ž$Â$ Ðof€Saudi€Arabia€a€clarification€that€the€shippingÐ v%š% Ðand€insurance€certifications€are€required€by€SaudiÐ N&r & ÐArabia€in€order€to:Ð &'J!' Їà ® à(i)€€Demonstrate€that€there€are€no€applicableÐ î' Ðrestrictions€under€Saudi€laws€or€regulationsÐ Æê( Ðpertaining€to€maritime€matters€such€as€the€age€ofÐ ž Â) Ðthe€ship,€the€condition€of€the€ship,€and€similarÐ v š* Ðmatters€that€would€bar€entry€of€the€vessel€intoÐ N r+ ÐSaudi€ports;€andÐ & J, ÐÌà ® à(ii)€€Facilitate€dealings€with€insurers€by€SaudiÐ Ö ú. ÐArabian€importers€whose€ability€to€secureÐ ®Ò/ Ðexpeditious€payments€in€the€event€of€damage€toÐ †ª 0 Ðinsured€goods€may€be€adversely€affected€by€theÐ ^‚ 1 Ðabsence€of€a€qualified€agent€or€representative€ofÐ 6Z 2 Ðthe€insurer€in€Saudi€Arabia.€€In€the€DepartmentððsÐ 2 3 Ðjudgment,€this€clarification€constitutes€sufficientÐ æ 4 Ðfacts€and€circumstances€to€demonstrate€that€theÐ ¾â 5 Ðcertifications€are€not€required€by€Saudi€Arabia€forÐ –º6 Ðboycott€reasons.Ð n’7 ÐÌOn€the€basis€of€this€clarification,€it€is€theÐ B9 ÐDepartmentððs€position€that€any€United€StatesÐ ö: Ðperson€may€furnish€such€shipping€and€insuranceÐ Îò; Ðcertificates€required€by€Saudi€Arabia€withoutÐ ¦Ê< Ðviolating€ðð760.2(d)€of€this€part.€€Moreover,€underÐ ~¢= Ðthese€circumstances,€receipts€of€requests€for€suchÐ Vz> Ðshipping€and€insurance€certificates€from€SaudiÐ .R? ÐArabia€are€not€reportable.Ð *@ ÐÌIt€is€still€the€Departmentððs€position€that€furnishingÐ ¶ÚB Ðsuch€a€certificate€pertaining€to€oneððs€ownÐ Ž²C Ðeligibility€offends€no€prohibition€under€part€760.€Ð f ŠD ÐSee€ðð760.2(f)€of€this€part,€example€(xiv).€Ð >!bE ÐHowever,€absent€facts€and€circumstances€clearlyÐ ":F Ðindicating€that€the€certifications€are€required€forÐ î"G Ðordinary€commercial€reasons€as€demonstrated€byÐ Æ#êH Ðthe€Saudi€clarification,€furnishing€certificationsÐ ž$ÂI Ðabout€the€eligibility€or€blacklist€status€of€anyÐ v%šJ Ðother€person€would€fall€within€the€prohibition€setÐ N&r K Ðforth€in€ðð760.2(d)€of€this€part,€and€receipts€ofÐ &'J!L Ðrequests€for€such€certifications€are€reportable.Ð þ'""M ÐÌIt€also€remains€the€Departmentððs€position€thatÐ ®)Ò#O Ðwhere€a€United€States€person€asks€an€insurer€orÐ †*ª$P Ðcarrier€of€the€exporterððs€goods€to€self-certify,€suchÐ ^+‚%Q Ðrequest€offends€no€prohibition€under€this€part.€Ð 6,Z&R ÐHowever,€where€a€United€States€person€asksÐ Ü Ðanyone€other€than€an€insurer€or€carrier€of€theÐ ´Ø Ðexporterððs€goods€to€self-certify,€such€requests€willÐ Œ° Ðbe€considered€by€the€Department€as€evidence€ofÐ dˆ Ðthe€requesting€personððs€refusal€to€do€businessÐ < ` Ðwith€those€persons€who€cannot€or€will€not€furnishÐ  8 Ðsuch€a€self-certification.€€For€example,€if€anÐ ì  Ðexporter-beneficiary€of€a€letter€of€credit€asks€hisÐ Ä è Ðcomponent€suppliers€to€self-certify,€such€a€requestÐ œ À Ðwill€be€considered€as€evidence€of€his€refusal€to€doÐ t ˜  Ðbusiness€with€those€component€suppliers€whoÐ Lp  Ðcannot€or€will€not€furnish€such€a€self-certification.Ð $H  ЇThe€Department€wishes€to€emphasize€thatÐ Ü  Ðnotwithstanding€the€fact€that€self-certificationsÐ ´Ø  Ðare€permissible,€it€will€closely€scrutinize€theÐ Œ°  Ðactivities€of€all€United€States€persons€whoÐ dˆ Ðprovide€such€self-certifications,€including€insurersÐ < ` Ðand€carriers,€to€determine€that€such€persons€haveÐ  8 Ðnot€taken€any€prohibited€actions€or€entered€intoÐ ì  Ðany€prohibited€agreements€in€order€to€be€able€toÐ Ä è Ðfurnish€such€certifications.Ð œ À ÐÐ t ˜ ÐÐ Ôø  ÐÐ  Ôø  ÐØØÓ  ÓÓ5‡# Ü5ÓÖ€u?°ÖÒ(€X€0°À°À(Òà@@©©#ìàò òINTERPRETATIONó óÐ  1 ÐÓnDÓÓ@† d2Æ:!!11!zD@ÓÌÒ(€X€°(#°(#(ÒPursuant€to€Article€2,€Annex€II€of€the€PeaceÐ î ÐTreaty€between€Egypt€and€Israel,€EgyptððsÐ Æê Ðparticipation€in€the€Arab€economic€boycott€ofÐ ž  ÐIsrael€was€formally€terminated€on€January€25,Ð v š Ð1980.€€On€the€basis€of€this€action,€it€is€theÐ N r ÐDepartmentððs€position€that€certain€requests€forÐ & J Ðinformation,€action€or€agreement€which€wereÐ þ " Ðconsidered€boycott-related€by€implication€nowÐ Ö ú  Ðcannot€be€presumed€boycott-related€and€thusÐ ®Ò  Ðwould€not€be€prohibited€or€reportable€under€theÐ †ª  ÐRegulations.€€For€example,€a€request€that€anÐ ^‚  Ðexporter€certify€that€the€vessel€on€which€it€isÐ 6Z  Ðshipping€its€goods€is€eligible€to€enter€ArabÐ 2  ÐRepublic€of€Egypt€ports€has€been€considered€aÐ æ  Ðboycott-related€request€that€the€exporter€could€notÐ ¾â  Ðcomply€with€because€Egypt€has€a€boycott€in€forceÐ –º Ðagainst€Israel€(see€43€FR€16969,€April€21,€1978).€Ð n’ ÐSuch€a€request€after€January€25,€1980€would€notÐ Fj Ðbe€presumed€boycott-related€because€theÐ B Ðunderlying€boycott€requirement/basis€for€theÐ ö Ðcertification€has€been€eliminated.€€Similarly,€aÐ î ÐU.S.€company€would€not€be€prohibited€fromÐ Æê Ðcomplying€with€a€request€received€from€EgyptianÐ ž  Ðgovernment€officials€to€furnish€the€place€of€birthÐ v š Ðof€employees€the€company€is€seeking€to€take€toÐ N r ÐEgypt,€because€there€is€no€underlying€boycott€lawÐ & J Ðor€policy€that€would€give€rise€to€a€presumptionÐ þ " Ðthat€the€request€was€boycott-related.Ð Ö ú ÐÌU.S.€persons€are€reminded€that€requests€that€areÐ †ª  Ðon€their€face€boycott-related€or€that€are€for€actionÐ ^‚  Ðobviously€in€furtherance€or€support€of€anÐ 6Z  Ðunsanctioned€foreign€boycott€are€subject€to€theÐ 2 ! ÐRegulations,€irrespective€of€the€country€or€origin.€Ð æ " ÐFor€example,€requests€containing€references€toÐ ¾â # Ðð ðblacklisted€companiesðð,€ð ðIsrael€boycott€listðð,Ð –º$ Ðð ðnon-Israeli€goodsðð€or€other€phrases€or€wordsÐ n’% Ðindicating€boycott€purpose€would€be€subject€toÐ Fj& Ðthe€appropriate€provisions€of€the€Department'sÐ B' Ðantiboycott€regulations.Ð ö( ÐÐ ¦Ê( ÐÐ  ¦Ê( ÐØØÓ  ÓÓ5‡# Ü5ÓÖ€­u°ÖÒ(€X€0°À°À(Òà@@©©#ìàò òINTERPRETATIONó óÐ  1 ÐÓ PÓÓ@† d2Æ:!!11!P@ÓÌÒ(€X€°(#°(#(ÒThe€question€has€arisen€how€the€definition€of€U.S.Ð î Ðcommerce€in€the€antiboycott€regulations€(15€CFRÐ Æê Ðpart€760)€applies€to€a€shipment€of€foreign-madeÐ ž  Ðgoods€when€U.S.-origin€spare€parts€are€includedÐ v š Ðin€the€shipment.€€Specifically,€if€the€shipment€ofÐ N r Ðforeign€goods€falls€outside€the€definition€of€U.S.Ð & J Ðcommerce,€will€the€inclusion€of€U.S.-origin€spareÐ þ " Ðparts€bring€the€entire€transaction€into€U.S.Ð Ö ú  Ðcommerce?Ð ®Ò  ÐÌÔ‡%&rf%%ß&rfÔSection€760.1(d)(12)€provides€the€generalÐ ^‚  Ðguidelines€for€determining€when€U.S.-originÐ 6Z  Ðgoods€shipped€from€a€controlled€in€fact€foreignÐ 2  Ðsubsidiary€are€outside€U.S.€commerce.€The€twoÐ æ  Ðkey€tests€of€that€provision€are€that€the€goods€wereÐ ¾â  Ðð ð(i)€...€acquired€without€reference€to€a€specificÐ –º Ðorder€from€or€transaction€with€a€person€outsideÐ n’ Ðthe€United€States;€and€(ii)€...€furtherÐ Fj Ðmanufactured,€incorporated€into,€refined€into,€orÐ B Ðreprocessed€into€another€product.ðð€Because€theÐ ö Ðapplication€of€these€two€tests€to€spare€parts€doesÐ Îò Ðnot€conclusively€answer€the€U.S.€commerceÐ ¦Ê Ðquestion,€the€Department€is€presenting€thisÐ ~¢ Ðclarification.Ô#†ß&rf%%%&rf…S#ÔÐ Vz ÐÌIn€the€cases€brought€to€the€Department's€attention,Ð * Ðan€order€for€foreign-origin€goods€was€placed€withÐ Þ Ða€controlled€in€fact€foreign€subsidiary€of€a€UnitedÐ ¶Ú ÐStates€company.€€The€foreign€goods€containedÐ Ž² Ðcomponents€manufactured€in€the€United€StatesÐ f Š Ðand€in€other€countries,€and€the€order€included€aÐ >!b  Ðrequest€for€extras€of€the€U.S.€manufacturedÐ ":! Ðcomponents€(spare€parts)€to€allow€the€customer€toÐ î"" Ðrepair€the€item.€Both€the€foreign€manufacturedÐ Æ#ê# Ðproduct€and€the€U.S.€spare€parts€were€to€beÐ ž$Â$ Ðshipped€from€the€general€inventory€of€the€foreignÐ v%š% Ðsubsidiary.€€Since€the€spare€parts,€if€shipped€byÐ N&r & Ðthemselves,€would€be€in€U.S.€commerce€as€thatÐ &'J!' Ðterm€is€defined€in€the€Regulations,€the€questionÐ þ'""( Ðwas€whether€including€them€with€the€foreignÐ Ö(ú") Ðmanufactured€item€would€bring€the€entireÐ ®)Ò#* Ðshipment€into€U.S.€commerce.€€The€DepartmentÐ †*ª$+ Ðhas€decided€that€it€will€not€and€presents€theÐ ^+‚%, Ðfollowing€specific€guidance.Ð 6,Z&- ЇAs€used€above,€the€term€ð ðspare€partsðð€refers€toÐ î- Ðparts€of€the€quantities€and€types€normally€andÐ Æê. Ðcustomarily€ordered€with€a€product€and€kept€onÐ ž Â/ Ðhand€in€the€event€they€are€needed€to€assureÐ v š0 Ðprompt€repair€of€the€product.€€Parts,€componentsÐ N r1 Ðor€accessories€that€improve€or€change€the€basicÐ & J2 Ðoperations€or€design€characteristics,€for€example,Ð þ "3 Ðas€to€accuracy,€capability€or€productivity,€are€notÐ Ö ú4 Ðspare€parts€under€this€definition.Ð ®Ò5 ÐÌInclusion€of€U.S.-origin€spare€parts€in€a€shipmentÐ ^‚ 7 Ðof€products€which€is€otherwise€outside€U.S.Ð 6Z 8 Ðcommerce€will€not€bring€the€transaction€into€U.S.Ð 2 9 Ðcommerce€if€the€following€conditions€are€met:Ð æ : ÐÌ(I)€€The€parts€included€in€the€shipment€areÐ –º< Ðacquired€from€the€United€States€by€the€controlledÐ n’= Ðin€fact€foreign€subsidiary€without€reference€to€aÐ Fj> Ðspecific€order€from€or€transaction€with€a€personÐ B? Ðoutside€the€United€States;Ð ö@ ÐÌ(II)€€The€parts€are€identical€to€the€correspondingÐ ¦ÊB ÐUnited€States-origin€parts€which€have€beenÐ ~¢C Ðmanufactured,€incorporated€into€or€reprocessedÐ VzD Ðinto€the€completed€product;Ð .RE ÐÌ(III)€€The€parts€are€of€the€quantity€and€typeÐ ÞG Ðnormally€and€customarily€ordered€with€theÐ ¶ÚH Ðcompleted€product€and€kept€on€hand€by€the€firmÐ Ž²I Ðor€industry€of€which€the€firm€is€a€part€to€assureÐ f ŠJ Ðprompt€repair€of€the€product;€andÐ >!bK ÐÌ(IV)€€The€parts€are€covered€by€the€same€order€asÐ î"M Ðthe€completed€product€and€are€shipped€with€or€atÐ Æ#êN Ðthe€same€time€as€the€original€product.Ð ž$ÂO ÐÌThe€Department€emphasizes€that€unless€each€ofÐ N&r Q Ðthe€above€conditions€is€met,€the€inclusion€ofÐ &'J!R ÐUnited€States-origin€spare€parts€in€an€order€for€aÐ þ'""S Ðforeign-manufactured€or€assembled€product€willÐ Ö(ú"T Ðbring€the€entire€transaction€into€the€interstate€orÐ ®)Ò#U Ðforeign€commerce€of€the€United€States€forÐ †*ª$V Ðpurposes€of€part€760.Ð ^+‚%W ÐÐ  6,Z&X ÐØØÓ  ÓÓ5‡# Ü5ÓÖ€²­°ÖÒ(€X€0°À°À(Òà@@©©#ìàò òINTERPRETATIONó óÐ  1 ÐÓÒeÓÓ@†À!:!!11!Þe@Óà F àà Ü àà r àà  àà h àÌÒ(€X€°(#°(#(ÒÓ  Óà@@´´¸ àA.€òòPermissible€Furnishing€of€InformationóóÐ î ÐÓ@gÓÌThe€information€outlined€below€may€be€furnishedÐ ž  Ðin€response€to€boycott-related€requests€fromÐ v š Ðboycotting€countries€or€others.€This€informationÐ N r Ðis,€in€the€view€of€the€Department,€not€prohibitedÐ & J Ðby€the€Regulations.€€Thus,€a€person€does€not€haveÐ þ " Ðto€qualify€under€any€of€the€exceptions€to€be€ableÐ Ö ú  Ðto€make€the€following€statements.€€SuchÐ ®Ò  Ðstatements€can€be€made,€however,€only€by€theÐ †ª  Ðperson€indicated€and€under€the€circumstancesÐ ^‚  Ðdescribed.€These€statements€should€not€be€used€asÐ 6Z  Ða€point€of€departure€or€analogy€for€determiningÐ 2  Ðthe€permissibility€of€other€types€of€statements.€Ð æ  ÐThe€Department's€view€that€these€statements€areÐ ¾â  Ðnot€contrary€to€the€prohibitions€contained€inÐ –º Ðantiboycott€provisions€of€the€Regulations€isÐ n’ Ðlimited€to€the€specific€statement€in€the€specificÐ Fj Ðcontext€indicated.Ð B ÐÌ1.€€A€U.S.€person€may€always€provide€its€ownÐ Îò Ðname,€address,€place€of€incorporationÐ ¦Ê Ð(ð ðnationalityðð),€and€nature€of€business.Ð ~¢ ÐÌ2.€€A€U.S.€person€may€state€that€it€is€not€on€aÐ .R Ðblacklist,€or€restricted€from€doing€business€in€aÐ * Ðboycotting€country.€€A€company€may€not€makeÐ Þ Ðthat€statement€about€its€subsidiaries€orÐ ¶Ú Ðaffiliates--only€about€itself.€€A€U.S.€person€mayÐ Ž² Ðnot€say€that€there€is€no€reason€for€it€to€beÐ f Š Ðblacklisted.€€To€make€that€statement€wouldÐ >!b  Ðprovide€directly€or€by€implication€informationÐ ":! Ðthat€may€not€be€provided.€€A€U.S.€person€mayÐ î"" Ðinquire€about€the€reasons€it€is€blacklisted€if€itÐ Æ#ê# Ðlearns€that€it€is€on€a€blacklist€(see€ðð760.2(d)€ofÐ ž$Â$ Ðthis€part€example€(xv)).Ð v%š% ÐÌ3.€€A€U.S.€person€may€describe€in€detail€its€pastÐ &'J!' Ðdealings€with€boycotting€countries;€may€state€inÐ þ'""( Ðwhich€boycotting€countries€its€trademarks€areÐ Ö(ú") Ðregistered;€and€may€specify€in€which€boycottingÐ ®)Ò#* Ðcountries€it€is€registered€or€qualified€to€doÐ †*ª$+ Ðbusiness.€€In€general,€a€U.S.€person€is€free€toÐ ^+‚%, Ðfurnish€any€information€it€wishes€about€the€natureÐ 6,Z&- Ðand€extent€of€its€commercial€dealings€withÐ î- Ðboycotting€countries.Ð Æê. ÐÌ4.€€A€U.S.€person€may€state€that€many€U.S.€firmsÐ v š0 Ðor€individuals€have€similar€names€and€that€itÐ N r1 Ðbelieves€that€it€may€be€confused€with€a€similarlyÐ & J2 Ðnamed€entity.€€A€U.S.€person€may€not€state€that€itÐ þ "3 Ðdoes€or€does€not€have€an€affiliation€orÐ Ö ú4 Ðrelationship€with€such€similarly€named€entity.Ð ®Ò5 ÐÌ5.€€A€U.S.€person€may€state€that€the€informationÐ ^‚ 7 Ðrequested€is€a€matter€of€public€record€in€theÐ 6Z 8 ÐUnited€States.€€However,€the€person€may€notÐ 2 9 Ðdirect€the€inquirer€to€the€location€of€thatÐ æ : Ðinformation,€nor€may€the€U.S.€person€provide€orÐ ¾â ; Ðcause€to€be€provided€such€information.Ð –º< ÐÌÓ  Óà@@””& àB.€€òòAvailability€of€the€Compliance€with€LocalÐ Fj> ÐLaw€Exception€toóó€à@@/ àòòEstablish€a€Foreign€BranchóóÐ B? ÐÓBuÓÌSection€760.3(g),€the€Compliance€With€LocalÐ ÎòA ÐLaw€exception,€permits€U.S.€persons,€who€areÐ ¦ÊB Ðbona€fide€residents€of€a€boycotting€country,€toÐ ~¢C Ðtake€certain€limited,€but€otherwise€prohibited,Ð VzD Ðactions,€if€they€are€required€to€do€so€in€order€toÐ .RE Ðcomply€with€local€law.Ð *F ÐÌAmong€these€actions€is€the€furnishing€ofÐ ¶ÚH Ðnon-discriminatory€information.€€Examples€(iv)Ð Ž²I Ðthrough€(vi)€under€ð ðExamples€of€Bona€FideÐ f ŠJ ÐResidencyðð€indicate€that€a€company€seeking€toÐ >!bK Ðbecome€a€bona€fide€resident€within€a€boycottingÐ ":L Ðcountry€may€take€advantage€of€the€exception€forÐ î"M Ðthe€limited€purpose€of€furnishing€informationÐ Æ#êN Ðrequired€by€local€law€to€obtain€resident€status.€Ð ž$ÂO ÐExactly€when€and€how€this€exception€is€availableÐ v%šP Ðhas€been€the€subject€of€a€number€of€inquiries.€€ItÐ N&r Q Ðis€the€Department's€view€that€the€followingÐ &'J!R Ðconditions€must€be€met€for€a€non-residentÐ þ'""S Ðcompany€to€be€permitted€to€furnish€otherwiseÐ Ö(ú"T Ðprohibited€information€for€the€limited€purpose€ofÐ ®)Ò#U Ðseeking€to€become€a€bona€fide€resident:Ð †*ª$V ÐÌ1.€€The€company€must€have€a€legitimate€businessÐ 6,Z&X Ðreason€for€seeking€to€establish€a€branch€or€otherÐ Ü Ðresident€operation€in€the€boycotting€country.Ð ´Ø Ð(Removal€from€the€blacklist€does€not€constituteÐ Œ° Ðsuch€a€reason.)Ð dˆ ÐÌ2.€€The€local€operation€it€seeks€to€establish€mustÐ  8 Ðbe€similar€or€comparable€in€nature€and€operationÐ ì  Ðto€ones€the€company€operates€in€other€parts€of€theÐ Ä è Ðworld,€unless€local€law€or€custom€dictates€aÐ œ À Ðsignificantly€different€form.Ð t ˜  ÐÌ3.€€The€person€who€visits€the€boycotting€countryÐ $H  Ðto€furnish€the€information€must€be€the€officialÐ ü  Ðwhose€responsibility€ordinarily€includes€theÐ Ôø  Ðcreation€and€registration€of€foreign€operationsÐ ¬Ð  Ð(i.e.,€the€chairman€of€the€board€cannot€be€flown€inÐ „¨  Ðto€answer€boycott€questions€unless€the€chairmanÐ \€  Ðof€the€board€is€the€corporate€official€whoÐ 4X Ðordinarily€goes€into€a€country€to€handle€foreignÐ  0 Ðregistrations).Ð ä ÐÌ4.€€The€information€provided€must€be€that€whichÐ ”¸ Ðis€ordinarily€known€to€the€person€establishing€theÐ Ü Ðforeign€branch.€Obviously,€at€the€time€ofÐ ´Ø Ðestablishment,€the€foreign€branch€will€have€noÐ Œ° Ðinformation€of€its€own€knowledge.€€Rather,€theÐ dˆ Ðinformation€should€be€that€which€the€responsibleÐ < ` Ðperson€has€of€his€own€knowledge,€or€that€heÐ  8 Ðwould€have€with€him€as€incidental€and€necessaryÐ ì  Ðto€the€registration€and€establishment€process.€€AsÐ Ä è Ða€general€rule,€such€information€would€notÐ œ À Ðinclude€such€things€as€copies€of€agreements€withÐ t ˜ Ðboycotted€country€concerns€or€detailedÐ Lp Ðinformation€about€the€person's€dealings€withÐ $H  Ðblacklisted€concerns.Ð ü ! ÐÌ5.€It€is€not€necessary€that€documents€prepared€inÐ ¬Ð # Ðcompliance€with€this€exception€be€drafted€orÐ „¨ $ Ðexecuted€within€the€boycotting€country.€€TheÐ \€ % Ðrestrictions€on€the€type€of€information€which€mayÐ 4X& Ðbe€provided€and€on€who€may€provide€it€applyÐ  0' Ðregardless€of€where€the€papers€are€prepared€orÐ ä( Ðsigned.Ð ¼à) ÐÐ ”¸* ÐÐ Dh* ÐÐ  Dh* ÐØØÓ  ÓÓ5‡# Ü5ÓրȲ°ÖÒ(€X€0°À°À(Òà@@©©#ìàò òINTERPRETATIONó óÐ  1 ÐÓº…ÓÓ@† d2Æ:!!11!Æ…@ÓÌÒ(€X€°(#°(#(ÒThe€antiboycott€regulations€prohibit€knowingÐ î Ðagreements€to€comply€with€certain€prohibitedÐ Æê Ðrequests€and€requirements€of€boycottingÐ ž  Ðcountries,€regardless€of€how€these€terms€areÐ v š Ðstated.€€Similarly,€the€reporting€rules€require€thatÐ N r Ða€boycott€related€ð ðsolicitation,€directive,€legend€orÐ & J Ðinstruction€that€asks€for€information€or€that€asksÐ þ " Ðthat€a€United€States€person€take€or€refrain€fromÐ Ö ú  Ðtaking€a€particular€actionðð€be€reported.€€QuestionsÐ ®Ò  Ðhave€frequently€arisen€about€how€particularÐ †ª  Ðrequirements€in€the€form€of€directive€orÐ ^‚  Ðinstructions€are€viewed€under€the€antiboycottÐ 6Z  Ðregulations,€and€we€believe€that€it€will€add€clarityÐ 2  Ðto€the€regulations€to€provide€a€writtenÐ æ  Ðinterpretation€of€how€three€of€these€terms€areÐ ¾â  Ðtreated€under€the€law.€€The€terms€in€questionÐ –º Ðappear€frequently€in€letters€of€credit,€but€may€alsoÐ n’ Ðbe€found€on€purchase€orders€or€other€shipping€orÐ Fj Ðsale€documents.€€They€have€been€brought€to€theÐ B Ðattention€of€the€Department€by€numerous€persons.€Ð ö ÐThe€terms€are,€or€are€similar€to,€the€following:€(1)€Ð Îò ÐGoods€of€boycotted€country€origin€are€prohibited;Ð ¦Ê Ð(2)€€No€six„pointed€stars€may€be€used€on€theÐ ~¢ Ðgoods,€packing€or€cases;€€(3)€€Neither€goods€norÐ Vz Ðpacking€shall€bear€any€symbols€prohibited€in€theÐ .R Ðboycotting€country.Ð * ÐÌÓ  ÓÔ‡ &Ø{%%ß&rfÔ(a)€€òòGoods€of€boycotted€country€originÐ ¶Ú ÐprohibitedóóÔ#†ß&rf%% &Ø{È#ÔÐ Œ° ÐÓ¼ÓÌÔ‡%&rf%%ß&rfÔThis€term€is€very€common€in€letters€of€credit€fromÐ :!^  ÐKuwait€and€may€also€appear€from€time-to-time€inÐ "6! Ðinvitations€to€bid,€contracts,€or€other€tradeÐ ê"" Ðdocuments.€€It€imposes€a€condition€or€requirementÐ Â#æ# Ðcompliance€with€which€is€prohibited,€butÐ š$¾$ Ðpermitted€by€an€exception€under€the€RegulationsÐ r%–% Ð(see€ðð760.2(a)€and€ðð760.3(a)).€It€is€reportable€byÐ J&n & Ðthose€parties€to€the€letter€of€credit€or€otherÐ "'F!' Ðtransaction€that€are€required€to€take€or€refrainÐ ú'"( Ðfrom€taking€some€boycott€related€action€by€theÐ Ò(ö") Ðrequest.€€Thus€the€bank€must€report€the€requestÐ ª)Î#* Ðbecause€it€is€a€term€or€condition€of€the€letter€ofÐ ‚*¦$+ Ðcredit€that€it€is€handling,€and€theÐ Z+~%, Ðexporter-beneficiary€must€report€the€requestÐ 2,V&- Ðbecause€the€exporter€determines€the€origin€of€theÐ î- Ðgoods.€€The€freight€forwarder€does€not€have€toÐ Æê. Ðreport€this€request€because€the€forwarder€has€noÐ ž Â/ Ðrole€or€obligation€in€selecting€the€goods.€Ð v š0 ÐHowever,€the€freight€forwarder€would€have€toÐ N r1 Ðreport€a€request€to€furnish€a€certificate€that€theÐ & J2 Ðgoods€do€not€originate€in€or€contain€componentsÐ þ "3 Ðfrom€a€boycotted€country.€€See€ðð760.5,€examplesÐ Ö ú4 Ð(xii)-(xvii).Ô#†ß&rf%%%&rf{Ž#ÔÐ ®Ò5 ÐÌÓ  ÓÔ‡ &Ø{%%ß&rfÔ(b)€€No€six-pointed€stars€may€be€used€on€theÐ ^‚ 7 Ðgoods,€packing€or€casesÔ#†ß&rf%% &Ø{½”#ÔÐ 4X 8 ÐÓ±”ÓÌThis€term€appears€from€time-to-time€onÐ â : Ðdocuments€from€a€variety€of€countries.€€TheÐ ºÞ ; ÐDepartment€has€taken€the€position€that€theÐ ’¶< Ðsix-pointed€star€is€a€religious€symbol.€€SeeÐ jŽ= Ððð760.2(b),€example€(viii)€of€this€part.€€Agreeing€toÐ Bf> Ðthis€term€is€prohibited€by€the€Regulations€and€notÐ >? Ðexcepted€because€it€constitutes€an€agreement€toÐ ò@ Ðfurnish€information€about€the€religion€of€a€U.S.Ð ÊîA Ðperson.€€See€ðð760.2(c)€of€this€part.€€If€a€personÐ ¢ÆB Ðproceeds€with€a€transaction€in€which€this€is€aÐ zžC Ðcondition€at€any€stage€of€the€transaction,€thatÐ RvD Ðperson€has€agreed€to€the€condition€in€violation€ofÐ *NE Ðthe€Regulations.€€It€is€not€enough€to€ignore€theÐ &F Ðcondition.€€Exception€must€affirmatively€be€takenÐ ÚþG Ðto€this€term€or€it€must€be€stricken€from€theÐ ²ÖH Ðdocuments€of€the€transaction.€€It€is€reportable€byÐ Š®I Ðall€parties€to€the€transaction€that€are€restricted€byÐ b †J Ðit.€€For€example,€unlike€the€situation€described€inÐ :!^K Ð(a)€above,€the€freight€forwarder€would€have€toÐ "6L Ðreport€this€request€because€his€role€in€theÐ ê"M Ðtransaction€would€involve€preparation€of€theÐ Â#æN Ðpacking€and€cases.€€The€bank€and€exporter€wouldÐ š$¾O Ðboth€have€to€report,€of€course,€if€it€were€a€term€inÐ r%–P Ða€letter€of€credit.€€Each€party€would€be€obligatedÐ J&n Q Ðaffirmatively€to€seek€an€amendment€or€deletion€ofÐ "'F!R Ðthe€term.Ð ú'"S Ðâ âÓ  ÓÐ Ò(ö"T ÐÓVœÓÓ  ÓÔ‡ &Ø{%%ß&rfÔÔ  Ôâ â(c)€€òòNeither€goods€nor€packaging€shall€bearÐ Ü Ðany€symbols€Ô#†ß&rf%% &Ø{”œ#ÔÔ€—&Ø{%%ß&rfÔprohibited€Ð ²Ö Ðin€the€boycotting€countryÔ‡ &Ø{%%—&Ø{Ô€Ô#†—&Ø{%% &Ø{’#ÔÐ ˆ¬ ÐÓˆœÓÌóóÔ€˜&rf%%—&Ø{ÔThis€term€appears€from€time„to„time€in€letters€ofÐ 4 X Ðcredit€and€shipping€documents€from€SaudiÐ  0 ÐArabia.€€In€our€view,€it€is€neither€prohibited,€norÐ ä  Ðreportable€because€it€is€not€boycott„related.€€ThereÐ ¼ à Ðis€a€wide€range€of€symbols€that€are€prohibited€inÐ Ü ÐSaudi€Arabia€for€a€variety€of€reasons,€manyÐ ´Ø Ðhaving€to€do€with€that€nation's€cultural€andÐ Œ°  Ðreligious€beliefs.€€On€this€basis,€we€do€notÐ dˆ  Ðinterpret€the€term€to€be€boycott€related.€€SeeÐ < `  Ððð760.2(a)(5)€and€ðð760.5(a)(5)(v)€of€this€part.Ð  8  ÐÐ ì   ÐÐ l   ÐÐ  l   ÐØØÓ  ÓÓ5‡# Ü5ÓÖ€ÕȰÖÒ(€X€0°À°À(Òà@@©©#ìàò òINTERPRETATIONó óÐ  1 ÐÓ¡ÓÓ@† d2Æ:!!11!#¡@ÓÌòòÒ(€X€°(#°(#(ÒProhibited€refusal€to€do€businessóó.€€Ð î ÐÌWhen€a€boycotting€country€rejects€forÐ ž  Ðboycott-related€reasons€a€shipment€of€goods€soldÐ v š Ðby€a€United€States€person,€the€United€StatesÐ N r Ðperson€selling€the€goods€may€return€them€to€itsÐ & J Ðinventory€or€may€re-ship€them€to€other€marketsÐ þ " Ð(the€United€States€person€may€not€return€them€toÐ Ö ú  Ðthe€original€supplier€and€demand€restitution).€€TheÐ ®Ò  ÐU.S.€person€may€then€make€a€non-boycott€basedÐ †ª  Ðselection€of€another€supplier€and€provide€theÐ ^‚  Ðgoods€necessary€to€meet€its€obligations€to€theÐ 6Z  Ðboycotting€customer€in€that€particular€transactionÐ 2  Ðwithout€violating€ðð760.2(a)€of€this€part.€€If€theÐ æ  ÐUnited€States€person€receives€another€order€fromÐ ¾â  Ðthe€same€boycotting€country€for€similar€goods,€theÐ –º ÐDepartment€has€determined€that€a€boycott-basedÐ n’ Ðrefusal€by€a€United€States€person€to€ship€goodsÐ Fj Ðfrom€the€supplier€whose€goods€were€previouslyÐ B Ðrejected€would€constitute€a€prohibited€refusal€toÐ ö Ðdo€business€under€ðð760.2(a)€of€this€part.€€TheÐ Îò ÐDepartment€will€presume€that€filling€such€anÐ ¦Ê Ðorder€with€alternative€goods€is€evidence€of€theÐ ~¢ Ðperson's€refusal€to€deal€with€the€original€supplier.Ð Vz ÐÌThe€Department€recognizes€the€limitations€thisÐ * Ðplaces€on€future€transactions€with€a€boycottingÐ Þ Ðcountry€once€a€shipment€of€goods€has€beenÐ ¶Ú Ðrejected.€€Because€of€this,€the€Department€wishesÐ Ž² Ðto€point€out€that,€when€faced€with€a€boycottingÐ f Š Ðcountry's€refusal€to€permit€entry€of€the€particularÐ >!b  Ðgoods,€a€United€States€person€may€state€itsÐ ":! Ðobligation€to€abide€by€the€requirements€of€UnitedÐ î"" ÐStates€law€and€indicate€its€readiness€to€complyÐ Æ#ê# Ðwith€the€unilateral€and€specific€selection€of€goodsÐ ž$Â$ Ðby€the€boycotting€country€in€accordance€withÐ v%š% Ððð760.3(d).€€That€section€provides,€in€pertinentÐ N&r & Ðpart,€as€follows:Ð &'J!' ÐÌÔ‡%&rf%%˜&rfÔð ðA€United€States€person€may€comply€or€agree€toÐ Ö(ú") Ðcomply€in€the€normal€course€of€business€with€theÐ ®)Ò#* Ðunilateral€and€specific€selection€by€a€boycottingÐ †*ª$+ Ðcountry€...€of€...€specific€goods,€...€provided€that€...Ð ^+‚%, Ðwith€respect€to€goods,€the€items,€in€the€normalÐ 6,Z&- Ðcourse€of€business,€are€identifiable€as€to€theirÐ î- Ðsource€or€origin€at€the€time€of€their€entry€into€theÐ Æê. Ðboycotting€country€by€(a)€uniqueness€of€design€orÐ ž Â/ Ðappearance€or€(b)€trademark,€trade€name,€or€otherÐ v š0 Ðidentification€normally€on€the€items€themselves,Ð N r1 Ðincluding€their€packaging.ððÔ#†˜&rf%%%&rf¼«#ÔÐ & J2 ÐÌThe€United€States€person€may€also€provideÐ Ö ú4 Ðcertain€services€in€advance€of€the€unilateralÐ ®Ò5 Ðselection€by€the€boycotting€country,€such€as€theÐ †ª 6 Ðcompilation€of€lists€of€qualified€suppliers,€so€longÐ ^‚ 7 Ðas€such€services€are€customary€to€the€type€ofÐ 6Z 8 Ðbusiness€the€United€States€person€is€engaged€in,Ð 2 9 Ðand€the€services€rendered€are€completelyÐ æ : Ðnon-exclusionary€in€character€(i.e.,€the€list€ofÐ ¾â ; Ðqualified€suppliers€would€have€to€include€theÐ –º< Ðsupplier€whose€goods€had€previously€beenÐ n’= Ðrejected€by€the€boycotting€country,€if€they€wereÐ Fj> Ðfully€qualified).€€See€ðð760.2(a)(6)€of€this€part€forÐ B? Ða€discussion€of€the€requirements€for€the€provisionÐ ö@ Ðof€these€services.Ð ÎòA ÐÌThe€Department€wishes€to€emphasize€that€theÐ ~¢C Ðunilateral€selection€exception€in€ðð760.3(d)€of€thisÐ VzD Ðpart€will€be€construed€narrowly,€and€that€all€itsÐ .RE Ðrequirements€and€conditions€must€be€met,Ð *F Ðincluding€the€following:Ð ÞG ÐÌ--€Discretion€for€the€selection€must€be€exercisedÐ Ž²I Ðby€a€boycotting€country;€or€by€a€national€orÐ f ŠJ Ðresident€of€a€boycotting€country;Ð >!bK ÐÌ--€The€selection€must€be€stated€in€the€affirmativeÐ î"M Ðspecifying€a€particular€supplier€of€goods;Ð Æ#êN ÐÌ--€While€a€permissible€selection€may€be€boycottÐ v%šP Ðbased,€if€the€United€States€person€knows€or€hasÐ N&r Q Ðreason€to€know€that€the€purpose€of€the€selection€isÐ &'J!R Ðto€effect€discrimination€against€any€United€StatesÐ þ'""S Ðperson€on€the€basis€of€race,€religion,€sex,€orÐ Ö(ú"T Ðnational€origin,€the€person€may€not€comply€underÐ ®)Ò#U Ðany€circumstances.Ð †*ª$V ÐÌThe€Department€cautions€United€States€personsÐ 6,Z&X Ðconfronted€with€the€problem€or€concern€over€theÐ Ü Ðboycott-based€rejection€of€goods€shipped€to€aÐ ´Ø Ðboycotting€country€that€the€adoption€of€devicesÐ Œ° Ðsuch€as€ð ðrisk€of€lossðð€clauses,€or€conditions€thatÐ dˆ Ðmake€the€supplier€financially€liable€if€his€or€herÐ < ` Ðgoods€are€rejected€by€the€boycotting€country€forÐ  8 Ðboycott€reasons€are€presumed€by€the€DepartmentÐ Ü Ðto€be€evasion€of€the€statute€and€regulations,€and€asÐ ´Ø Ðsuch€are€prohibited€by€ðð760.4€of€this€part,€unlessÐ Œ° Ðadopted€prior€to€January€18,€1978.€€See€ðð760.4(d)Ð dˆ Ðof€this€part.Ð < `  ÐÐ  8  ÐÐ Ä è  ÐÐ  Ä è  ÐØØÓ  ÓÓ5‡# Ü5ÓÖ€ÖÕ° ÖÒ(€X€0°À°À(Òà@@©©#ìàò òINTERPRETATIONó óÐ  1 ÐÓJºÓÓ@† d2Æ:!!11!Vº@ÓÌòòÒ(€X€°(#°(#(Òà@»»¸ àDefinition€of€Interstate€or€Foreign€Commerce€ofˆÐ î Ðthe€United€StatesóóÐ Æê ÐÌWhen€United€States€persons€(as€defined€by€theÐ v š Ðantiboycott€regulations)€located€within€the€UnitedÐ N r ÐStates€purchase€or€sell€goods€or€services€locatedÐ & J Ðoutside€the€United€States,€they€have€engaged€in€anÐ þ " Ðactivity€within€the€foreign€commerce€of€theÐ Ö ú  ÐUnited€States.€€Although€the€goods€or€servicesÐ ®Ò  Ðmay€never€physically€come€within€the€geographicÐ †ª  Ðboundaries€of€the€several€states€or€territories€ofÐ ^‚  Ðthe€United€States,€legal€ownership€or€title€isÐ 6Z  Ðtransferred€from€a€foreign€nation€to€the€UnitedÐ 2  ÐStates€person€who€is€located€in€the€United€States.€Ð æ  ÐIn€the€case€of€a€purchase,€subsequent€resale€wouldÐ ¾â  Ðalso€be€within€United€States€commerce.Ð –º ÐÌIt€is€the€Department's€view€that€the€terms€ð ðsaleððÐ Fj Ðand€ð ðpurchaseðð€as€used€in€the€regulations€are€notÐ B Ðlimited€to€those€circumstances€where€the€goods€orÐ ö Ðservices€are€physically€transferred€to€the€personÐ Îò Ðwho€acquires€title.€€The€EAR€define€the€activitiesÐ ¦Ê Ðthat€serve€as€the€transactional€basis€for€U.S.Ð ~¢ Ðcommerce€as€those€involving€the€ð ðsale,€purchase,Ð Vz Ðor€transferðð€of€goods€or€services.€In€theÐ .R ÐDepartment's€view,€as€used€in€the€antiboycottÐ * Ðregulations,€ð ðtransferðð€contemplates€physicalÐ Þ Ðmovement€of€the€goods€or€services€between€theÐ î Ðseveral€states€or€territories€and€a€foreign€country,Ð Æê Ðwhile€ð ðsaleðð€and€ð ðpurchaseðð€relate€to€theÐ ž  Ðmovement€of€ownership€or€title.Ð v š ÐÌThis€interpretation€applies€only€to€thoseÐ & J! Ðcircumstances€in€which€the€person€located€withinÐ þ "" Ðthe€United€States€buys€or€sells€goods€or€servicesÐ Ö ú# Ðfor€its€own€account.€€Where€the€United€StatesÐ ®Ò$ Ðperson€is€engaged€in€the€brokerage€of€foreignÐ †ª % Ðgoods,€i.e.,€bringing€foreign€buyers€and€sellersÐ ^‚ & Ðtogether€and€assisting€in€the€transfer€of€the€goods,Ð 6Z ' Ðthe€sale€or€purchase€itself€would€not€ordinarily€beÐ 2 ( Ðconsidered€to€be€within€U.S.€commerce.€€TheÐ æ ) Ðbrokerage€service,€however,€would€be€a€serviceÐ ¾â * Ðprovided€from€the€United€States€to€the€parties€andÐ –º+ Ðthus€an€activity€within€U.S.€commerce€and€subjectÐ n’, Ðto€the€antiboycott€laws.€€See€ðð760.1(d)(3).Ð Fj- ÐÌThe€Department€cautions€that€United€StatesÐ ö/ Ðpersons€who€alter€their€normal€pattern€of€dealingÐ Îò0 Ðto€eliminate€the€passage€of€ownership€of€theÐ ¦Ê1 Ðgoods€or€services€to€or€from€the€several€states€orÐ ~¢2 Ðterritories€of€the€United€States€in€order€to€avoidÐ Vz3 Ðthe€application€of€the€antiboycott€regulationsÐ .R4 Ðwould€be€in€violation€of€ðð760.4€of€this€part.Ð *5 ÐÐ  Þ6 ÐØØÓ  ÓÓ5‡# Ü5ÓÖ€×Ö° ÖÒ(€X€0°À°À(Òà@@©©#ìàò òINTERPRETATIONó óÐ  1 ÐÓ»ÈÓÓ@† d2Æ:!!11!ÇÈ@ÓÌÒ(€X€°(#°(#(ÒòòActivities€Exclusively€Within€a€BoycottingÐ î ÐCountry--Furnishing€InformationóóÐ Æê ÐÌðð760.3(h)€of€this€part€provides€that€a€UnitedÐ v š ÐStates€person€who€is€a€bona€fide€resident€of€aÐ N r Ðboycotting€country€may€comply€with€the€laws€ofÐ & J Ðthat€country€with€respect€to€his€or€her€activitiesÐ þ " Ðexclusively€within€the€boycotting€country.€AmongÐ Ö ú  Ðthe€types€of€conduct€permitted€by€this€exceptionÐ ®Ò  Ðis€ð ðfurnishing€information€within€the€hostÐ †ª  Ðcountryðð€ðð760.3(h)(1)(v)€of€this€part.€€ForÐ ^‚  Ðpurposes€of€the€discussion€which€follows,€theÐ 6Z  ÐDepartment€is€assuming€that€the€person€inÐ 2  Ðquestion€is€a€bona€fide€resident€of€the€boycottingÐ æ  Ðcountry€as€defined€in€ðð760.3(g),€and€that€theÐ ¾â  Ðinformation€to€be€provided€is€required€by€the€lawsÐ –º Ðor€regulations€of€the€boycotting€country,€as€alsoÐ n’ Ðdefined€in€ðð760.3(g)€of€this€part.€€The€only€issueÐ Fj Ðthis€interpretation€addresses€is€under€whatÐ B Ðcircumstances€the€provision€of€information€is€ð ðanÐ ö Ðactivity€exclusively€within€the€boycottingÐ Îò Ðcountry.ððÐ ¦Ê ÐÌThe€activity€of€ð ðfurnishing€informationðð€consistsÐ Vz Ðof€two€parts,€the€acquisition€of€the€informationÐ .R Ðand€its€subsequent€transmittal.€€Under€the€termsÐ * Ðof€this€exception,€the€information€may€not€beÐ Þ Ðacquired€outside€the€country€for€the€purpose€ofÐ ¶Ú Ðresponding€to€the€requirement€for€informationÐ Ž² Ðimposed€by€the€boycotting€country.€€Thus,€if€anÐ f Š ÐAmerican€company€which€is€a€bona€fide€residentÐ >!b  Ðof€a€boycotting€country€is€required€to€provideÐ ":! Ðinformation€about€its€dealings€with€other€U.S.Ð î"" Ðfirms,€the€company€may€not€ask€its€parentÐ Æ#ê# Ðcorporation€in€the€United€States€for€thatÐ ž$Â$ Ðinformation,€or€make€any€other€inquiry€outsideÐ v%š% Ðthe€boundaries€of€the€boycotting€country.€€TheÐ N&r & Ðinformation€must€be€provided€to€the€boycottingÐ &'J!' Ðcountry€authorities€based€on€information€orÐ þ'""( Ðknowledge€available€to€the€company€and€itsÐ Ö(ú") Ðpersonnel€located€within€the€boycotting€country€atÐ ®)Ò#* Ðthe€time€the€inquiry€is€received.€€See€ðð760.3,Ð †*ª$+ Ðparagraphs€(h)(iii),€(iv),€(v)€of€this€part.€€Much€ofÐ ^+‚%, Ðthe€information€in€the€company's€possessionÐ 6,Z&- Ð(transaction€and€corporate€records)€may€haveÐ î- Ðactually€originated€outside€the€boycottingÐ Æê. Ðcountry,€and€much€of€the€information€known€toÐ ž Â/ Ðthe€employees€may€have€been€acquired€outsideÐ v š0 Ðthe€boycotting€country.€€This€will€not€cause€theÐ N r1 Ðinformation€to€fall€outside€the€coverage€of€thisÐ & J2 Ðexception,€if€the€information€was€sent€to€theÐ þ "3 Ðboycotting€country€or€acquired€by€the€individualsÐ Ö ú4 Ðin€normal€commercial€context€prior€to€andÐ ®Ò5 Ðunrelated€to€a€boycott€inquiry€or€purpose.€€ItÐ †ª 6 Ðshould€be€noted€that€if€prohibited€informationÐ ^‚ 7 Ð(about€business€relations€with€a€boycottedÐ 6Z 8 Ðcountry,€for€example)€has€been€forwarded€to€theÐ 2 9 Ðaffiliate€in€the€boycotting€country€in€anticipationÐ æ : Ðof€a€possible€boycott€inquiry€from€the€boycottingÐ ¾â ; Ðcountry€government,€the€Department€will€notÐ –º< Ðregard€this€as€information€within€the€knowledgeÐ n’= Ðof€the€bona€fide€resident€under€the€terms€of€theÐ Fj> Ðexception.€€However,€if€the€bona€fide€residentÐ B? Ðpossesses€the€information€prior€to€receipt€of€aÐ ö@ Ðboycott-related€inquiry€and€obtained€it€in€aÐ ÎòA Ðnormal€commercial€context,€the€information€canÐ ¦ÊB Ðbe€provided€pursuant€to€this€exceptionÐ ~¢C Ðnotwithstanding€the€fact€that,€at€some€point,€theÐ VzD Ðinformation€came€into€the€boycotting€countryÐ .RE Ðfrom€the€outside.Ð *F ÐÌThe€second€part€of€the€analysis€of€ð ðfurnishingÐ ¶ÚH Ðinformationðð€deals€with€the€limitation€on€theÐ Ž²I Ðtransmittal€of€the€information.€€It€can€only€beÐ f ŠJ Ðprovided€within€the€boundaries€of€the€boycottingÐ >!bK Ðcountry.€€The€bona€fide€resident€may€only€provideÐ ":L Ðthe€information€to€the€party€that€the€boycottingÐ î"M Ðcountry€law€requires€(directly€or€through€an€agentÐ Æ#êN Ðor€representative€within€the€country)€so€long€asÐ ž$ÂO Ðthat€party€is€located€within€the€boycottingÐ v%šP Ðcountry.€€This€application€of€the€exception€isÐ N&r Q Ðsomewhat€easier,€since€it€is€relatively€simple€toÐ &'J!R Ðdetermine€if€the€information€is€to€be€given€toÐ þ'""S Ðsomebody€within€the€country.€Ð Ö(ú"T ÐÌNote€that€in€discussing€what€constitutesÐ †*ª$V Ðfurnishing€information€ð ðexclusively€withinðð€theÐ ^+‚%W Ðboycotting€country,€the€Department€does€notÐ 6,Z&X Ðaddress€the€nature€of€the€transaction€or€activityÐ Ü Ðthat€the€information€relates€to.€€It€is€theÐ ´Ø ÐDepartment's€position€that€the€nature€of€theÐ Œ° Ðtransaction,€including€the€inception€or€completionÐ dˆ Ðof€the€transaction,€is€not€material€in€analyzing€theÐ < ` Ðavailability€of€this€exception.Ð  8 ÐÌFor€example,€if€a€shipment€of€goods€imported€intoÐ Ä è Ða€boycotting€country€is€held€up€at€the€time€ofÐ œ À Ðentry,€and€information€from€the€bona€fide€residentÐ t ˜  Ðwithin€that€country€is€legally€required€to€freeÐ Lp  Ðthose€goods,€the€fact€that€the€information€mayÐ $H  Ðrelate€to€a€transaction€that€began€outside€theÐ ü  Ðboycotting€country€is€not€material.€€TheÐ Ôø  Ðavailability€of€the€exception€will€be€judged€basedÐ ¬Ð  Ðon€the€activity€of€the€bona€fide€resident€within€theÐ „¨  Ðcountry.€€If€the€resident€provides€that€informationÐ \€  Ðof€his€or€her€own€knowledge,€and€provides€it€toÐ 4X Ðappropriate€parties€located€exclusively€within€theÐ  0 Ðcountry,€the€exception€permits€the€information€toÐ ä Ðbe€furnished.Ð ¼à ÐÌFactual€variations€may€raise€questions€about€theÐ l Ðapplication€of€this€exception€and€the€effect€of€thisÐ Dh Ðinterpretation.€€In€an€effort€to€anticipate€some€ofÐ @ Ðthese,€the€Department€has€set€forth€below€aÐ ô Ðnumber€of€questions€and€answers.€€They€areÐ Ìð Ðincorporated€as€a€part€of€this€interpretation.Ð ¤È ÐÌ1.€€Q€Under€this€exception,€can€a€company€whichÐ Tx Ðis€a€U.S.€person€and€a€bona€fide€resident€of€theÐ ,P Ðboycotting€country€provide€information€to€theÐ  ( Ðlocal€boycott€office?Ð Ü   ÐÌA€Yes,€if€local€law€requires€the€company€toÐ Œ"°" Ðprovide€this€information€to€the€boycott€office€andÐ d#ˆ# Ðall€the€other€requirements€are€met.Ð <$`$ ÐÌ2.€€Q€If€the€company€knows€that€the€local€boycottÐ ì% & Ðoffice€will€forward€the€information€to€the€CentralÐ Ä&è ' ÐBoycott€Office,€may€it€still€provide€theÐ œ'À!( Ðinformation€to€the€local€boycott€office?Ð t(˜") ÐÌA€Yes,€if€it€is€required€by€local€law€to€furnish€theÐ $*H$+ Ðinformation€to€the€local€boycott€office€and€all€theÐ Ü+ Ðother€requirements€are€met.€€The€company€has€noÐ ´Ø, Ðcontrol€over€what€happens€to€the€informationÐ Œ°- Ðafter€it€is€provided€to€the€proper€authorities.€Ð dˆ. Ð(There€is€obvious€potential€for€evasion€here,€andÐ < `/ Ðthe€Department€will€examine€such€occurrencesÐ  80 Ðclosely.)Ð ì 1 ÐÌ3.€€Q€Can€a€U.S.€person€who€is€a€bona€fideÐ œ À3 Ðresident€of€Syria€furnish€information€to€theÐ t ˜4 ÐCentral€Boycott€Office€in€Damascus?Ð Lp5 ÐÌA€No,€unless€the€law€in€Syria€specifically€requiresÐ ü 7 Ðinformation€to€be€provided€to€the€Central€BoycottÐ Ôø 8 ÐOffice€the€exception€will€not€apply.€€Syria€has€aÐ ¬Ð 9 Ðlocal€boycott€office€responsible€for€enforcing€theÐ „¨ : Ðboycott€in€that€country.Ð \€ ; ÐÌ4.€€Q€If€a€company€which€is€a€U.S.€person€and€aÐ  0= Ðbona€fide€resident€of€the€boycotting€country€hasÐ ä> Ðan€import€shipment€held€up€in€customs€of€theÐ ¼à? Ðboycotting€country,€and€is€required€to€provideÐ ”¸@ Ðinformation€about€the€shipment€to€get€it€out€ofÐ lA Ðcustoms,€may€the€company€do€so?Ð DhB ÐÌA€Yes,€assuming€all€other€requirements€are€met.€Ð ôD ÐThe€act€of€furnishing€the€information€is€theÐ ÌðE Ðactivity€taking€place€exclusively€within€theÐ ¤ÈF Ðboycotting€country.€€The€fact€that€the€informationÐ | G Ðis€provided€corollary€to€a€transaction€thatÐ TxH Ðoriginates€or€terminates€outside€the€boycottingÐ ,PI Ðcountry€is€not€material.Ð  (J ÐÌ5.€Q€If€the€U.S.€person€and€bona€fide€resident€ofÐ ´!ØL Ðthe€boycotting€country€is€shipping€goods€out€ofÐ Œ"°M Ðthe€boycotting€country,€and€is€required€to€certifyÐ d#ˆN Ðto€customs€officials€of€the€country€at€the€time€ofÐ <$`O Ðexport€that€the€goods€are€not€of€Israeli€origin,€mayÐ %8P Ðhe€do€so€even€though€the€certification€relates€toÐ ì% Q Ðan€export€transaction?Ð Ä&è R ÐÌA€Yes,€assuming€all€other€requirements€are€met.€Ð t(˜"T ÐSee€number€4€above.Ð L)p#U ÐÐ  $*H$V ÐØØÓ  ÓÓ5‡# Ü5ÓÖ€Ø×° ÖÒ(€X€0°À°À(Òà@@©©#ìàò òINTERPRETATIONó óÐ  1 ÐÓíòÓÓ@†î:!!11! ùò@ÓÌÔ‡&Ø{%%˜&rfÔÒ(€X€°(#°(#(Ò(a)Ô#†˜&rf%%&Ø{÷ó#Ô€The€words€ð ðPersian€Gulfðð€cannot€appear€onÐ î Ðthe€document.Ð Èì ÐÌThis€term€is€common€in€letters€of€credit€fromÐ x œ ÐKuwait€and€may€be€found€in€letters€of€credit€fromÐ P t ÐBahrain.€€Although€more€commonly€appearing€inÐ ( L Ðletters€of€credit,€the€term€may€also€appear€in€otherÐ  $ Ðtrade€documents.Ð Ø ü  ÐÌIt€is€the€Departmentððs€view€that€this€term€reflectsÐ ˆ¬  Ða€historical€dispute€between€the€Arabs€and€theÐ `„  ÐIranians€over€geographic€place€names€which€in€noÐ 8\  Ðway€relates€to€existing€economic€boycotts.€€Thus,Ð 4  Ðthe€term€is€neither€prohibited€nor€reportable€underÐ è  Ðthe€Regulations.Ð Àä  ÐÌÔ‡&Ø{%%˜&rfÔ(b)Ô#†˜&rf%%&Ø{Œ÷#Ô€Certify€that€goods€are€of€U.S.A.€origin€andÐ p” Ðòòcontain€no€foreign€partsóó.Ð Jn ÐÌThis€term€appears€periodically€on€documentsÐ ú Ðfrom€a€number€of€Arab€countries.€€It€is€theÐ Òö ÐDepartmentððs€position€that€the€statement€is€aÐ ªÎ Ðpositive€certification€of€origin€and,€as€such,€fallsÐ ‚¦ Ðwithin€the€exception€contained€in€ðð760.3(c)€ofÐ Z~ Ðthis€part€for€compliance€with€the€import€andÐ 2V Ðshipping€document€requirements€of€a€boycottingÐ  . Ðcountry.€€Even€though€a€negative€phrase€isÐ î Ðcontained€within€the€positive€clause,€the€phrase€isÐ Æê Ða€non„exclusionary,€non„blacklisting€statement.€Ð ž  ÐIn€the€Departmentððs€view,€the€additional€phraseÐ v š Ðdoes€not€affect€the€permissible€status€of€theÐ N r Ðpositive€certificate,€nor€does€it€make€the€requestÐ & J  Ðreportable€ðð760.5(a)(5)(iii)€of€this€part.Ð þ "! ÐÌÔ‡&Ø{%%˜&rfÔ(c)Ô#†˜&rf%%&Ø{ÿû#Ô€Legalization€of€documents€by€any€ArabÐ ®Ò# Ðconsulate€except€Egyptian€Consulate€permitted.Ð ˆ¬ $ ÐÌThis€term€appears€from€time€to€time€in€letters€ofÐ 8\ & Ðcredit€but€also€may€appear€in€various€other€tradeÐ 4 ' Ðdocuments€requiring€legalization€and€thus€is€notÐ è ( Ðprohibited,€and€a€request€to€comply€with€theÐ Àä ) Ðstatement€is€not€reportable.€€Because€a€number€ofÐ ˜¼* ÐArab€states€do€not€have€formal€diplomaticÐ p”+ Ðrelations€with€Egypt,€they€do€not€recognizeÐ Hl, ÐEgyptian€embassy€actions.€€The€absence€ofÐ  D- Ðdiplomatic€relations€is€the€reason€for€theÐ ø. Ðrequirement.€€In€the€Departmentððs€view€this€doesÐ Ðô/ Ðnot€constitute€an€unsanctioned€foreign€boycott€orÐ ¨Ì0 Ðembargo€against€Egypt€under€the€terms€of€theÐ €¤1 ÐExport€Administration€Act.€€Thus€the€term€is€notÐ X|2 Ðprohibited,€and€a€request€to€comply€with€theÐ 0T3 Ðstatement€is€not€reportable.Ð  ,4 ÐØØÓ  ÓÓ5‡# Ü 5ÓÖ€ÙØ° Öà@@©©#ìàò òÒ(€X€0°À°À(ÒINTERPRETATIONó óÐ  1 ÐÓ®ÓÓ@† d2Æ:!!11! º@ÓÌÒ(€X€°(#°(#(ÒòòDefinition€of€Unsolicited€Invitation€to€BidóóÐ î ÐÌðð760.5(a)(4)€of€this€part€states€in€part:Ð ž  ÐÌð ðIn€addition,€a€United€States€person€who€receivesÐ N r Ðan€unsolicited€invitation€to€bid,€or€similarÐ & J Ðproposal,€containing€a€boycott€request€has€notÐ þ " Ðreceived€a€reportable€request€for€purposes€of€thisÐ Ö ú  Ðsection€where€he€does€not€respond€to€theÐ ®Ò  Ðinvitation€to€bid€or€other€proposal.ððÐ †ª  ÐÌThe€Regulations€do€not€define€ð ðunsolicitedðð€inÐ 6Z  Ðthis€context.€€Based€on€review€of€numerousÐ 2  Ðsituations,€the€Department€has€developed€certainÐ æ  Ðcriteria€that€it€applies€in€determining€if€anÐ ¾â  Ðinvitation€to€bid€or€other€proposal€received€by€aÐ –º ÐU.S.€person€is€in€fact€unsolicited.Ð n’ ÐÌThe€invitation€is€not€unsolicited€if,€during€aÐ B Ðcommercially€reasonable€period€of€time€precedingÐ ö Ðthe€issuance€of€the€invitation,€a€representative€ofÐ Îò Ðthe€U.S.€person€contacted€the€company€or€agencyÐ ¦Ê Ðinvolved€for€the€purpose€of€promoting€businessÐ ~¢ Ðon€behalf€of€the€company.Ð Vz ÐÌThe€invitation€is€not€unsolicited€if€the€U.S.€personÐ * Ðhas€advertised€the€product€or€line€of€products€thatÐ Þ Ðare€the€subject€of€the€invitation€in€periodicals€orÐ ¶Ú Ðpublications€that€ordinarily€circulate€to€theÐ Ž² Ðcountry€issuing€the€invitation€during€aÐ f Š Ðcommercially€reasonable€period€of€time€precedingÐ >!b  Ðthe€issuance€of€the€invitation.Ð ":! Ðà F àà Ü àà r àà  àà h àÐ î"" ÐThe€invitation€is€not€unsolicited€if€the€U.S.€personÐ î" Ðhas€sold€the€same€or€similar€products€to€theÐ Æê# Ðcompany€or€agency€issuing€the€invitation€within€aÐ ž Â$ Ðcommercially€reasonable€period€of€time€beforeÐ v š% Ðthe€issuance€of€the€current€invitation.Ð N r& ÐÌThe€invitation€is€not€unsolicited€if€the€U.S.€personÐ þ "( Ðhas€participated€in€a€trade€mission€to€or€trade€fairÐ Ö ú) Ðin€the€country€issuing€the€invitation€within€aÐ ®Ò* Ðcommercially€reasonable€period€of€time€beforeÐ †ª + Ðthe€issuance€of€the€invitation.Ð ^‚ , ÐÌUnder€ðð760.5(a)(4)€of€this€part,€the€invitation€isÐ 2 . Ðregarded€as€not€reportable€if€the€U.S.€personÐ æ / Ðreceiving€it€does€not€respond.€€The€DepartmentÐ ¾â 0 Ðhas€determined€that€a€simple€acknowledgment€ofÐ –º1 Ðthe€invitation€does€not€constitute€a€response€forÐ n’2 Ðpurposes€of€this€rule.€€€However,€anÐ Fj3 Ðacknowledgment€that€requests€inclusion€for€futureÐ B4 Ðinvitations€will€be€considered€a€response,€and€aÐ ö5 Ðreport€is€required.Ð Îò6 ÐÌWhere€the€person€in€receipt€of€an€invitationÐ ~¢8 Ðcontaining€a€boycott€term€or€condition€isÐ Vz9 Ðundecided€about€a€response€by€the€time€a€reportÐ .R: Ðwould€be€required€to€be€filed€under€theÐ *; Ðregulations,€it€is€the€Departmentððs€view€that€theÐ Þ< Ðperson€must€file€a€report€as€called€for€in€theÐ ¶Ú= ÐRegulations.€€The€person€filing€the€report€mayÐ Ž²> Ðindicate€at€the€time€of€filing€that€he€has€not€madeÐ f Š? Ða€decision€on€the€boycott€request€but€must€file€aÐ >!b@ Ðsupplemental€report€as€called€for€in€theÐ ":A Ðregulations€at€the€time€a€decision€is€madeÐ î"B Ð(ðð760.5(b)(6)).Ð  Æ#êC ÐØØÓ  ÓÓ5‡# Ü 5ÓÖ€ÚÙ° ÖÒ(€X€0°À°À(Òà@@©©#ìàò òINTERPRETATIONó óÐ  1 ÐÓÓÓ@† d2Æ:!!11! *@ÓÌÒ(€X€°(#°(#(ÒThe€Department€has€taken€the€position€that€a€U.S.Ð î Ðperson€as€defined€by€ðð760.1(b)€of€this€part€mayÐ Æê Ðnot€make€use€of€an€agent€to€furnish€informationÐ ž  Ðthat€the€U.S.€person€is€prohibited€from€furnishingÐ v š Ðpursuant€to€ðð760.2(d)€of€this€part.Ð N r ÐÌExample€(v)€under€ðð760.4€of€this€part€(Evasion)Ð þ " Ðprovides:Ð Ö ú  ÐÌð ðA,€a€U.S.€company,€is€negotiating€a€long„termÐ †ª  Ðcontract€with€boycotting€country€Y€to€meet€all€ofÐ ^‚  ÐYððs€medical€supply€needs.€€Y€informs€A€thatÐ 6Z  Ðbefore€such€a€contract€can€be€concluded,€A€mustÐ 2  Ðcomplete€Yððs€boycott€questionnaire.€€A€knowsÐ æ  Ðthat€it€is€prohibited€from€answering€theÐ ¾â  Ðquestionnaire€so€it€arranges€for€a€local€agent€in€YÐ –º Ðto€supply€the€necessary€information.Ð n’ ÐÌAððs€action€constitutes€evasion€of€this€part,Ð B Ðbecause€it€is€a€device€to€mask€prohibited€activityÐ ö Ðcarried€out€on€Aððs€behalf.ðð€Ð Îò ÐÌThis€interpretation€deals€with€the€application€ofÐ ~¢ Ðthe€Regulations€to€a€commercial€agentÐ Vz Ðregistration€requirement€imposed€by€theÐ .R Ðgovernment€of€Saudi€Arabia.€€The€requirementÐ * Ðprovides€that€nationals€of€Saudi€Arabia€seeking€toÐ Þ Ðregister€in€Saudi€Arabia€as€commercial€agents€orÐ ¶Ú Ðrepresentatives€of€foreign€concerns€must€furnishÐ Ž² Ðcertain€boycott„related€information€about€theÐ f Š Ðforeign€concern€prior€to€obtaining€approval€of€theÐ >!b  Ðregistration.Ð ":! ÐÌThe€requirement€has€been€imposed€by€theÐ Æ#ê# ÐMinistry€of€Commerce€of€Saudi€Arabia,€which€isÐ ž$Â$ Ðthe€government€agency€responsible€for€regulationÐ v%š% Ðof€commercial€agents€and€foreign€commercialÐ N&r & Ðregistrations.€€The€Ministry€requires€the€agent€orÐ &'J!' Ðrepresentative€to€state€the€following:Ð þ'""( ÐÌð ðDeclaration:€I,€the€undersigned,€hereby€declare,Ð ®)Ò#* Ðin€my€capacity€as€(blank)€that€(name€and€addressÐ †*ª$+ Ðof€foreign€principal)€is€not€presently€on€theÐ ^+‚%, Ðblacklist€of€the€Office€for€the€Boycott€of€IsraelÐ 6,Z&- Ðand€that€it€and€all€its€branches,€if€any,€are€boundÐ î- Ðby€the€decisions€issued€by€the€Boycott€Office€andÐ Æê. Ðdo€not€(1)€participate€in€the€capital€of,€(2)€licenseÐ ž Â/ Ðthe€manufacture€of€any€products€or€grantÐ v š0 Ðtrademarks€or€tradeware€license€to,€(3)€giveÐ N r1 Ðexperience€or€technical€advice€to,€or€(4)€have€anyÐ & J2 Ðother€relationship€with€other€companies€which€areÐ þ "3 Ðprohibited€to€be€dealt€with€by€the€Boycott€Office.€Ð Ö ú4 ÐSigned€(name€of€commercialÐ ®Ò5 Ðagent/representative/distributor).ððÐ †ª 6 ÐÌIt€is€the€Departmentððs€view€that€under€theÐ 6Z 8 Ðcircumstances€specifically€outlined€in€thisÐ 2 9 Ðinterpretation€relating€to€the€nature€of€theÐ æ : Ðrequirement,€a€U.S.€person€will€not€be€heldÐ ¾â ; Ðresponsible€for€a€violation€of€this€part€when€suchÐ –º< Ðstatements€are€provided€by€its€commercial€agentÐ n’= Ðor€representative,€even€when€such€statements€areÐ Fj> Ðmade€with€the€full€knowledge€of€the€U.S.€person.Ð B? ÐÌòòNature€of€the€requirementóó.€€For€a€boycott„relatedÐ ÎòA Ðcommercial€registration€requirement€to€fall€withinÐ ¦ÊB Ðthe€coverage€of€this€interpretation€it€must€have€theÐ ~¢C Ðfollowing€characteristics:Ð VzD ÐÌ1.€€The€requirement€for€information€imposed€byÐ *F Ðthe€boycotting€country€applies€to€a€national€orÐ ÞG Ðother€subject€of€the€boycotting€country€qualifiedÐ ¶ÚH Ðunder€the€local€laws€of€that€country€to€function€asÐ Ž²I Ða€commercial€representative€within€that€country;Ð f ŠJ ÐÌ2.€€The€registration€requirement€relates€to€theÐ ":L Ðregistration€of€the€commercial€agentððs€orÐ î"M Ðrepresentativeððs€authority€to€sell€or€distributeÐ Æ#êN Ðgoods€within€the€boycotting€country€acquiredÐ ž$ÂO Ðfrom€the€foreign€concern;Ð v%šP ÐÌ3.€€The€requirement€is€a€routine€part€of€theÐ &'J!R Ðregistration€process€and€is€not€applied€selectivelyÐ þ'""S Ðbased€on€boycott„related€criteria;Ð Ö(ú"T ÐÌ4.€€The€requirement€applies€only€to€a€commercialÐ †*ª$V Ðagent€or€representative€in€the€boycotting€countryÐ ^+‚%W Ðand€does€not€apply€to€the€foreign€concern€itself;Ð 6,Z&X ÐandÐ Ü ÐÌ5.€€The€requirement€is€imposed€by€the€agency€ofÐ Œ° Ðthe€boycotting€country€responsible€for€regulatingÐ dˆ Ðcommercial€agencies.Ð < ` ÐÌThe€U.S.€person€whose€agent€is€complying€withÐ ì  Ðthe€registration€requirement€continues€to€beÐ Ä è Ðsubject€to€all€the€terms€of€the€Regulations,€andÐ œ À Ðmay€not€provide€any€prohibited€information€to€theÐ t ˜  Ðagent€for€purposes€of€the€agentððs€compliance€withÐ Lp  Ðthe€requirement.€€Ð $H  ÐÌIn€addition,€the€authority€granted€to€theÐ Ôø  Ðcommercial€agent€or€representative€by€the€U.S.Ð ¬Ð  Ðperson€must€be€consistent€with€standardÐ „¨  Ðcommercial€practices€and€not€involve€any€grantsÐ \€  Ðof€authority€beyond€those€incidental€to€theÐ 4X Ðcommercial€sales€and€distributorshipÐ  0 Ðresponsibilities€of€the€agent.Ð ä ЇBecause€the€requirement€does€not€apply€to€theÐ Ü ÐU.S.€person,€no€reporting€obligation€under€ðð760.5Ð ´Ø Ðof€this€part€would€arise.Ð Œ° ÐÌThis€interpretation,€like€all€others€issued€by€theÐ < ` ÐDepartment€discussing€applications€of€theÐ  8 Ðantiboycott€provisions€of€the€ExportÐ ì  ÐAdministration€Regulations,€should€be€readÐ Ä è Ðnarrowly.€Circumstances€that€differ€in€anyÐ œ À Ðmaterial€way€from€those€discussed€in€this€noticeÐ t ˜ Ðwill€be€considered€under€the€applicable€provisionsÐ Lp Ðof€the€Regulations.€€Persons€are€particularlyÐ $H  Ðadvised€not€to€seek€to€apply€this€interpretation€toÐ ü  Ðcircumstances€in€which€U.S.€principals€seek€toÐ Ôø  Ðuse€agents€to€deal€with€boycott„related€orÐ ¬Ð ! Ðpotential€blacklisting€situations.Ð „¨ " ÐÌÐ 4X$ ÐÐ ”¸$ ÐÐ  ”¸$ ÐØØÓ  ÓÓ5‡# Ü 5ÓÖ€ÛÚ°ÖÒ(€X€0°À°À(Òà@@©©#ìàò òINTERPRETATIONó óÐ  1 ÐÓó-ÓÓ@† d2Æ:!!11! ÿ-@ÓÌÒ(€X€°(#°(#(Òà@Þ Þ ¸ àSUMMARYˆÐ î ÐÌThis€interpretation€considers€boycott-basedÐ ž  Ðcontractual€language€dealing€with€the€selection€ofÐ v š Ðsuppliers€and€subcontractors.€€€While€thisÐ N r Ðlanguage€borrows€terms€from€the€ð ðunilateral€andÐ & J Ðspecific€selectionðð€exception€contained€inÐ þ " Ððð760.3(d),€it€fails€to€meet€the€requirements€of€thatÐ Ö ú  Ðexception.€€Compliance€with€the€requirements€ofÐ ®Ò  Ðthe€language€constitutes€a€violation€of€theÐ †ª  Ðregulatory€prohibition€of€boycott-based€refusals€toÐ ^‚  Ðdo€business.Ð 6Z  ÐÌà@®®¸ àREGULATORY€BACKGROUNDˆÐ æ  ÐÌSection€760.2(a)€of€this€part€prohibits€U.S.Ð –º Ðpersons€from€refusing€or€knowingly€agreeing€toÐ n’ Ðrefuse€to€do€business€with€other€persons€whenÐ Fj Ðsuch€refusal€is€pursuant€to€an€agreement€with,Ð B Ðrequirement€of,€or€request€of€a€boycottingÐ ö Ðcountry.€€That€prohibition€does€not€extend€to€theÐ Îò Ðperformance€of€management,€procurement€orÐ ¦Ê Ðother€pre-award€services,€however,Ð ~¢ Ðnotwithstanding€knowledge€that€the€ultimateÐ Vz Ðselection€may€be€boycott-based.€€To€beÐ .R Ðpermissible€such€services:€(1)€must€be€customaryÐ * Ðfor€the€firm€or€industry€involved€and€(2)€must€notÐ Þ Ðexclude€others€from€the€transaction€or€involveÐ ¶Ú Ðother€actions€based€on€the€boycott.€€SeeÐ Ž² Ððð760.2(a)(6)€of€this€part,€ð ðRefusals€to€DoÐ f Š ÐBusinessðð,€and€example€€(xiii).Ð >!b  ÐÌA€specific€exception€is€also€made€in€theÐ î"" ÐRegulations€for€compliance€(and€agreements€toÐ Æ#ê# Ðcomply)€with€an€unilateral€and€specific€selectionÐ ž$Â$ Ðof€suppliers€or€subcontractors€by€a€boycottingÐ v%š% Ðcountry€buyer.€See€ðð760.3(d)€of€this€part.€€InÐ N&r & ÐSupplement€No.€1€to€part€760,€the€following€formÐ &'J!' Ðof€contractual€language€was€said€to€fall€withinÐ þ'""( Ðthat€exception€for€compliance€with€unilateral€andÐ Ö(ú") Ðspecific€selection:Ð ®)Ò#* ÐÌà0 F àð ðThe€Government€of€the€boycotting€country€(orÐ ^+‚%, Ðthe€First€Party),€in€its€exclusive€power,€reservesÐ6,Z&-FÀFÀ Ðits€right€to€make€the€final€unilateral€and€specificÐ î- Ðselection€of€any€proposed€carriers,€insurers,Ð Æê. Ðsuppliers€of€services€to€be€performed€within€theÐ ž Â/ Ðboycotting€country,€or€of€specific€goods€to€beÐ v š0 Ðfurnished€in€accordance€with€the€terms€andÐ N r1 Ðconditions€of€this€contract.ððÐ& J2®(#®(# ÐÌThe€Department€noted€that€the€actual€stepsÐ Ö ú4 Ðnecessary€to€comply€with€any€selection€madeÐ ®Ò5 Ðunder€this€agreement€would€also€have€to€meet€theÐ †ª 6 Ðrequirements€of€ðð760.3(d)€to€claim€the€benefit€ofÐ ^‚ 7 Ðthat€exception.€€In€other€words,€the€discretion€inÐ 6Z 8 Ðselecting€would€have€to€be€exercised€exclusivelyÐ 2 9 Ðby€the€boycotting€country€customer€and€theÐ æ : Ðselection€would€have€to€be€stated€in€theÐ ¾â ; Ðaffirmative,€naming€a€particular€supplier.€€SeeÐ –º< Ððð760.3(d)(4)€and€(5)€of€this€part.Ð n’= ÐÌÓ  Óà@@ƒƒ1 àANALYSIS€OF€ADDITIONALÐ B? ÐCONTRACTUAL€LANGUAGEÐ ö@ ÐÓ0=ÓÌThe€Office€of€Antiboycott€Compliance€hasÐ ¦ÊB Ðlearned€of€the€introduction€of€a€contractual€clauseÐ ~¢C Ðinto€tender€documents€issued€by€boycottingÐ VzD Ðcountry€governments.€€This€clause€is,€in€manyÐ .RE Ðrespects,€similar€to€that€dealt€with€in€SupplementÐ *F ÐNo.€1€to€part€760,€but€several€critical€differencesÐ ÞG Ðexist.Ð ¶ÚH ÐÌThe€clause€states:Ð f ŠJ Ðà ® àà D àà Ú àà p àÌÓ  Óà@@åå7 àòòBOYCOTT€OF€Ð ":L Ð[NAME€OF€BOYCOTTED€COUNTRY]óóÐ î"M ÐÓ¼?ÓÌIn€connection€with€the€performance€of€thisÐ ž$ÂO ÐAgreement,€Contractor€acknowledges€that€theÐ v%šP Ðimport€and€customs€laws€and€regulations€ofÐ N&r Q Ðboycotting€country€apply€to€the€furnishing€andÐ &'J!R Ðshipment€of€any€products€or€components€thereofÐ þ'""S Ðto€boycotting€country.€€The€ContractorÐ Ö(ú"T Ðspecifically€acknowledges€that€theÐ ®)Ò#U Ðaforementioned€import€and€customs€laws€andÐ †*ª$V Ðregulations€of€boycotting€country€prohibit,€amongÐ ^+‚%W Ðother€things,€the€importation€in€to€boycottingÐ 6,Z&X Ðcountry€of€products€or€components€thereof:€(A)Ð Ü ÐOriginating€in€boycotted€country€(B)Ð ´Ø ÐManufactured,€produced€and€furnish€byÐ Œ° Ðcompanies€organized€under€the€laws€of€boycottedÐ dˆ Ðcountry€and€(C)€Manufactured,€produced€orÐ < ` Ðfurnished€by€Nationals€or€Residents€of€boycottedÐ  8 Ðcountry.Ð ì  ÐÌThe€Government,€in€its€exclusive€power,€reservesÐ œ À Ðits€right€to€make€the€final€unilateral€and€specificÐ t ˜  Ðselection€of€any€proposed€Carriers,€Insurers,Ð Lp  ÐSuppliers€of€Services€to€be€performed€withinÐ $H  Ðboycotting€country€or€of€specific€goods€to€beÐ ü  Ðfurnished€in€accordance€with€the€terms€andÐ Ôø  Ðconditions€of€this€Contract.Ð ¬Ð  ÐÌTo€assist€the€Government€in€exercising€its€rightÐ \€  Ðunder€the€preceding€paragraph,€Contractor€furtherÐ 4X Ðagrees€to€provide€a€complete€list€of€names€andÐ  0 Ðaddresses€of€all€his€Sub-Contractors,€Suppliers,Ð ä ÐVendors€and€Consultants€and€any€other€suppliersÐ ¼à Ðof€the€service€for€the€project.Ð ”¸ ÐÌThe€title€of€this€clause€makes€clear€that€itsÐ Dh Ðprovisions€are€intended€to€be€boycott-related.€Ð @ ÐThe€first€paragraph€acknowledges€theÐ ô Ðapplicability€of€certain€boycott-relatedÐ Ìð Ðrequirements€of€the€boycotting€countryððs€laws€inÐ ¤È Ðlanguage€reviewed€in€part€760,€Supplement€No.€1,Ð |  ÐPart€II.B.€and€found€to€constitute€a€permissibleÐ Tx Ðagreement€under€the€exception€contained€inÐ ,P Ððð760.3(a)€of€this€part€for€compliance€with€theÐ  ( Ðimport€requirements€of€a€boycotting€country.€€TheÐ Ü   Ðsecond€and€third€paragraphs€together€deal€withÐ ´!Ø! Ðthe€procedure€for€selecting€subcontractors€andÐ Œ"°" Ðsuppliers€of€services€and€goods€and,€in€theÐ d#ˆ# Ðcontext€of€the€clause€as€a€whole,€must€be€regardedÐ <$`$ Ðas€motivated€by€boycott€considerations€andÐ %8% Ðintended€to€enable€the€boycotting€countryÐ ì% & Ðgovernment€to€make€boycott-based€selections,Ð Ä&è ' Ðincluding€the€elimination€of€blacklistedÐ œ'À!( Ðsubcontractors€and€suppliers.Ð t(˜") ÐÌThe€question€is€whether€the€incorporation€intoÐ $*H$+ Ðthese€paragraphs€of€some€language€from€theÐ ü* %, Ðð ðunilateral€and€specific€selectionðð€clauseÐ Ô+ø%- Ðapproved€in€Supplement€No.€1€to€part€760Ð ¬,Ð&. Ðsuffices€to€take€the€language€outside€ðð760.2(a)€ofÐ Ü. Ðthis€partððs€prohibition€on€boycott-basedÐ ´Ø/ Ðagreements€to€refuse€to€do€business.€€While€theÐ Œ°0 Ðfirst€sentence€of€this€clause€is€consistent€with€theÐ dˆ1 Ðlanguage€discussed€in€Supplement€No.€1€to€partÐ < `2 Ð760,€the€second€sentence€significantly€alters€theÐ  83 Ðeffect€of€this€clause.€€The€effect€is€to€draw€theÐ ì 4 Ðcontractor€into€the€decision-making€process,Ð Ä è5 Ðthereby€destroying€the€unilateral€character€of€theÐ œ À6 Ðselection€by€the€buyer.€€By€agreeing€to€submit€theÐ t ˜7 Ðnames€of€the€suppliers€it€plans€to€use,€theÐ Lp8 Ðcontractor€is€agreeing€to€give€the€boycottingÐ $H 9 Ðcountry€buyer,€who€has€retained€the€right€of€finalÐ ü : Ðselection,€the€ability€to€reject,€for€boycott-relatedÐ Ôø ; Ðreasons,€any€supplier€the€contractor€has€alreadyÐ ¬Ð < Ðchosen.€€Because€the€requirement€appears€in€theÐ „¨ = Ðcontractual€provision€dealing€with€the€boycott,Ð \€ > Ðthe€buyerððs€rejection€of€any€supplier€whose€nameÐ 4X? Ðis€given€to€the€buyer€pursuant€to€this€provisionÐ  0@ Ðwould€be€presumed€to€be€boycott-based.€€ByÐ äA Ðsigning€the€contract,€and€thereby€agreeing€toÐ ¼àB Ðcomply€with€all€of€its€provisions,€the€contractorÐ ”¸C Ðmust€either€accept€the€buyerððs€rejection€of€anyÐ lD Ðsupplier,€which€is€presumed€to€be€boycott-basedÐ DhE Ðbecause€of€the€context€of€this€provision,€or€breachÐ @F Ðthe€contract.Ð ôG ÐÌIn€these€circumstances,€the€contractorððs€method€ofÐ ¤ÈI Ðchoosing€its€subcontractors€and€suppliers,€inÐ | J Ðanticipation€of€the€buyerððs€boycott-based€review,Ð TxK Ðcannot€be€considered€a€permissible€pre-awardÐ ,PL Ðservice€because€of€the€presumed€intrusion€ofÐ  (M Ðboycott-based€criteria€into€the€selection€process.€Ð Ü N ÐThus,€assuming€all€other€jurisdictionalÐ ´!ØO Ðrequirements€necessary€to€establish€a€violation€ofÐ Œ"°P Ðpart€760€are€met,€the€signing€of€the€contract€byÐ d#ˆQ Ðthe€contractor€constitutes€a€violation€of€ðð760.2(a)Ð <$`R Ðof€this€part€because€he€is€agreeing€to€refuse€to€doÐ %8S Ðbusiness€for€boycott€reasons.Ð ì% T ÐÌThe€apparent€attempt€to€bring€this€languageÐ œ'À!V Ðwithin€the€exception€for€compliance€withÐ t(˜"W Ðunilateral€and€specific€selections€is€ineffective.€Ð L)p#X ÐThe€language€does€not€place€the€discretion€toÐ $*H$Y Ðchoose€suppliers€in€the€hands€of€the€boycottingÐ ü* %Z Ðcountry€buyer€but€divides€this€discretion€betweenÐ Ô+ø%[ Ðthe€buyer€and€his€principal€contractor.€€KnowingÐ ¬,Ð&\ Ðthat€the€buyer€will€not€accept€a€boycottedÐ Ü Ðcompany€as€supplier€or€subcontractor,€theÐ ´Ø Ðcontractor€is€asked€to€use€his€discretion€inÐ Œ° Ðselecting€a€single€supplier€or€subcontractor€forÐ dˆ Ðeach€element€of€the€contract.€€The€boycottingÐ < ` Ðcountry€buyer€exercises€discretion€only€throughÐ  8 Ðaccepting€or€rejecting€the€selected€supplier€orÐ ì  Ðcontractor€as€its€boycott€policies€require.€€In€theseÐ Ä è Ðcircumstances€it€cannot€be€said€that€the€buyer€isÐ Ü Ðexercising€right€of€unilateral€and€specificÐ ´Ø Ðselection€which€meets€the€criteria€of€ðð760.3(d).€Ð Œ°  ÐFor€this€reason,€agreement€to€the€contractualÐ dˆ  Ðlanguage€discussed€here€would€constitute€anÐ < `  Ðagreement€to€refuse€to€do€business€with€anyÐ  8  Ðperson€rejected€by€the€buyer€and€would€violateÐ ì   Ððð760.2(a)€of€this€part.Ð Ä è ÐÐ t ˜ ÐÐ  t ˜ ÐØØÓ  ÓÓ5‡# Ü 5ÓÖ€ÜÛ°ÖÒ(€X€0°À°À(Òà@@©©#ìàò òINTERPRETATIONó óÐ  1 ÐÓ¼]ÓÓ@† d2Æ:!!11! È]@ÓÌÔ‡&Ø{%%˜&rfÔÓ  ÓÒ(€X€°(#°(#(Ò(a)€€òòContractual€clause€concerning€import,Ð î Ðcustoms€and€boycott€laws€Ð Äè Ðof€a€boycotting€countryóóÔ#†˜&rf%%&Ø{Æ^#ÔÐ š ¾ ÐÓå^ÓÌThe€following€language€has€appeared€in€tenderÐ H l Ðdocuments€issued€by€a€boycotting€country:Ð  D ÐÌð ðSupplier€declares€his€knowledge€of€the€fact€thatÐ Ð ô  Ðthe€import,€Customs€and€boycott€laws,€rules€andÐ ¨Ì  Ðregulations€of€[name€of€boycotting€country]€applyÐ €¤  Ðin€importing€to€[name€of€boycotting€country].Ð X|  ÐÌSupplier€declares€his€knowledge€of€the€fact€thatÐ ,  Ðunder€these€laws,€rules€and€regulations,€it€isÐ à  Ðprohibited€to€import€into€[name€of€the€boycottingÐ ¸Ü  Ðcountry]€any€products€or€parts€thereof€thatÐ ´ Ðoriginated€in€[name€of€boycotted€country];€wereÐ hŒ Ðmanufactured,€produced€or€imported€byÐ @d Ðcompanies€formed€under€the€laws€of€[name€ofÐ < Ðboycotted€country];€or€were€manufactured,Ð ð Ðproduced€or€imported€by€nationals€or€residents€ofÐ Èì Ð[name€of€boycotted€country].ððÐ  Ä ÐÌAgreeing€to€the€above€contractual€language€is€aÐ Pt Ðprohibited€agreement€to€refuse€to€do€business,Ð (L Ðunder€ðð760.2(a)€of€this€part.€€The€first€paragraphÐ $ Ðrequires€broad€acknowledgment€of€the€applicationÐ Øü Ðof€the€boycotting€countryððs€boycott€laws,€rulesÐ °Ô Ðand€regulations.€€Unless€this€language€is€qualifiedÐ ˆ¬ Ðto€apply€only€to€boycott€restrictions€with€whichÐ ` „ ÐU.S.€persons€may€comply,€agreement€to€it€isÐ 8!\  Ðprohibited.€€See€ðð760.2(a)€of€this€part,€examplesÐ "4! Ð(v)€and€(vi)€under€ð ðAgreements€to€Refuse€to€DoÐ è" " ÐBusiness.ððÐ À#ä# ÐÌThe€second€paragraph€does€not€limit€the€scope€ofÐ p%”% Ðthe€boycott€restrictions€referenced€in€the€firstÐ H&l & Ðparagraph.€€It€states€that€the€boycott€laws€includeÐ  'D!' Ðrestrictions€on€goods€originating€in€the€boycottedÐ ø'"( Ðcountry;€manufactured,€produced€or€supplied€byÐ Ð(ô") Ðcompanies€organized€under€the€laws€of€theÐ ¨)Ì#* Ðboycotted€country;€or€manufactured,€produced€orÐ €*¤$+ Ðsupplied€by€nationals€or€residents€of€theÐ X+|%, Ðboycotted€country.€€Each€of€these€restrictions€isÐ 0,T&- Ðwithin€the€exception€for€compliance€with€theÐ î- Ðimport€requirements€of€the€boycotting€countryÐ Æê. Ð(ðð760.3(a)€of€this€part).€€However,€the€secondÐ ž Â/ Ðparagraphððs€list€of€restrictions€is€not€exclusive.€Ð v š0 ÐSince€the€boycott€laws€generally€include€moreÐ N r1 Ðthan€what€is€listed€and€permissible€under€theÐ & J2 Ðantiboycott€law,€U.S.€persons€may€not€agree€toÐ þ "3 Ðthe€quoted€clause.€€For€example,€a€countryððsÐ Ö ú4 Ðboycott€laws€may€prohibit€imports€of€goodsÐ ®Ò5 Ðmanufactured€by€blacklisted€firms.€Except€asÐ †ª 6 Ðprovided€by€ðð760.3(g)€of€this€part,€agreement€toÐ ^‚ 7 Ðand€compliance€with€this€boycott€restrictionÐ 6Z 8 Ðwould€be€prohibited€under€the€antiboycott€law.Ð 2 9 ÐÌThe€above€contractual€language€is€distinguishedÐ ¾â ; Ðfrom€the€contract€clause€determined€to€beÐ –º< Ðpermissible€in€supplement€1,€Part€II,€A,€by€itsÐ n’= Ðacknowledgment€that€the€boycott€requirements€ofÐ Fj> Ðthe€boycotting€country€apply.€€Although€the€firstÐ B? Ðsentence€of€the€Supplement€1€clause€does€notÐ ö@ Ðexclude€the€possible€application€of€boycott€laws,Ð ÎòA Ðit€refers€only€to€the€import€and€customs€laws€ofÐ ¦ÊB Ðthe€boycotting€country€without€mentioning€theÐ ~¢C Ðboycott€laws€as€well.€€As€discussed€fully€inÐ VzD ÐSupplement€No.€1€to€part€760,€compliance€with€orÐ .RE Ðagreement€to€the€clause€quoted€there€is,€therefore,Ð *F Ðpermissible.Ð ÞG ÐÌThe€contract€clause€quoted€above,€as€well€as€theÐ Ž²I Ðclause€dealt€with€in€Supplement€No.€1€to€part€760,Ð f ŠJ Ðpart€II,€A,€is€reportable€under€ðð760.5(a)(1).Ð >!bK Ðà ® àà D àà Ú àà p àà Ð àÌÓ  ÓÔ‡9&Ø{%%˜&rfÔ(b)€òòLetter€of€credit€terms€removing€blacklistÐ î"M Ðcertificate€requirement€if€specified€vessels€usedóóÔ#†˜&rf%%9&Ø{q#ÔÐ Ä#èN ÐÌÓqÓThe€following€terms€frequently€appear€on€lettersÐ r%–P Ðof€credit€covering€shipment€to€Iraq:Ð J&n Q ÐÌð ðShipment€to€be€effected€by€Iraqi€State€EnterpriseÐ ú'"S Ðfor€Maritime€Transport€Vessels€or€by€UnitedÐ Ò(ö"T ÐArab€Shipping€Company€(SAB)€vessels,€ifÐ ª)Î#U Ðavailable.Ð ‚*¦$V ÐÌIf€shipment€is€effected€by€any€of€the€aboveÐ 2,V&X Ðcompanyððs€[sic]€vessels,€black€list€certificate€orÐ Ü Ðevidence€to€that€effect€is€not€required.ððÐ ´Ø ÐÌThese€terms€are€not€reportable€and€complianceÐ dˆ Ðwith€them€is€permissible.Ð < ` ÐÌThe€first€sentence,€a€directive€to€use€Iraqi€StateÐ ì  ÐEnterprise€for€Maritime€Transport€or€United€ArabÐ Ä è ÐShipping€vessels,€is€neither€reportable€norÐ œ À Ðprohibited€because€it€is€not€considered€by€theÐ t ˜  ÐDepartment€to€be€boycott-related.€€The€apparentÐ Lp  Ðreason€for€the€directive€is€Iraqððs€preference€toÐ $H  Ðhave€cargo€shipped€on€its€own€vessels€(or,€as€inÐ ü  Ðthe€case€of€United€Arab€Shipping,€on€vesselsÐ Ôø  Ðowned€by€a€company€in€part€established€andÐ ¬Ð  Ðowned€by€the€Iraqi€government).€€Such€ð ðcargoÐ „¨  Ðpreferenceðð€requirements,€calling€for€the€use€of€anÐ \€  Ðimporting€or€exporting€countryððs€own€ships,€areÐ 4X Ðcommon€throughout€the€world€and€are€imposedÐ  0 Ðfor€non-boycott€reasons.€€(See€ðð760.2(a)€of€thisÐ ä Ðpart,€example€(vii)€AGREEMENTS€TO€REFUSEÐ ¼à ÐTO€DO€BUSINESS.)Ð ”¸ ÐÌIn€contrast,€if€the€letter€of€credit€contains€a€list€ofÐ Dh Ðvessels€or€carriers€that€appears€to€constitute€aÐ @ Ðboycott-related€whitelist,€a€directive€to€select€aÐ ô Ðvessel€from€that€list€would€be€both€reportable€andÐ Ìð Ðprohibited.€€When€such€a€directive€appears€inÐ ¤È Ðconjunction€with€a€term€removing€the€blacklistÐ |  Ðcertificate€requirement€if€these€vessels€are€used,Ð Tx Ðthe€Department€will€presume€that€beneficiaries,Ð ,P Ðbanks€and€any€other€U.S.€person€receiving€theÐ  ( Ðletter€of€credit€know€that€there€is€a€boycott-relatedÐ Ü   Ðpurpose€for€the€directive.Ð ´!Ø! ÐÌThe€second€sentence€of€the€letter€of€creditÐ d#ˆ# Ðlanguage€quoted€above€does€not,€by€itself,€call€forÐ <$`$ Ða€blacklist€certificate€and€is€not€therefore,Ð %8% Ðreportable.€€If€a€term€elsewhere€on€the€letter€ofÐ ì% & Ðcredit€imposes€a€blacklist€certificate€requirement,Ð Ä&è ' Ðthen€that€other€term€would€be€reportable.Ð œ'À!( ÐÌÓ  ÓÔ‡:&Ø{%%˜&rfÔ(c)€òòInformation€not€related€to€a€particularÐ L)p#* Ðtransaction€in€U.S.€€commerceóóÔ#†˜&rf%%:&Ø{P}#ÔÐ "*F$+ ÐÓD}ÓÌUnder€ðð760.2€(c),€(d)€and€(e),€of€this€part€U.S.Ð Ð+ô%- Ðpersons€are€prohibited,€with€respect€to€theirÐ ¨,Ì&. Ðactivities€in€U.S.€commerce,€from€furnishingÐ Ü. Ðcertain€information.€€It€is€the€DepartmentððsÐ ´Ø/ Ðposition€that€the€required€nexus€with€U.S.Ð Œ°0 Ðcommerce€is€established€when€the€furnishing€ofÐ dˆ1 Ðinformation€itself€occurs€in€U.S.€commerce.€€EvenÐ < `2 Ðwhen€the€furnishing€of€information€is€not€itself€inÐ  83 ÐU.S.€commerce,€however,€the€necessaryÐ ì 4 Ðrelationship€to€U.S.€commerce€will€be€establishedÐ Ä è5 Ðif€the€furnishing€of€information€relates€toÐ œ À6 Ðparticular€transactions€in€U.S.€commerce€or€toÐ t ˜7 Ðanticipated€transactions€in€U.S.€commerce.€€See,Ð Lp8 Ðe.g.€ðð760.2(d),€examples€(vii),€(ix)€and€(xii)€ofÐ $H 9 Ðthis€part.Ð ü : ÐÌThe€simplest€situation€occurs€where€a€U.S.€personÐ ¬Ð < Ðlocated€in€the€United€States€furnishes€informationÐ „¨ = Ðto€a€boycotting€country.€€The€transfer€ofÐ \€ > Ðinformation€from€the€United€States€to€a€foreignÐ 4X? Ðcountry€is€itself€an€activity€in€U.S.€commerce.€Ð  0@ ÐSee€ðð760.1(d)(1)(iv)€of€this€part.€€In€someÐ äA Ðcircumstances,€the€furnishing€of€information€by€aÐ ¼àB ÐU.S.€person€located€outside€the€United€States€mayÐ ”¸C Ðalso€be€an€activity€in€U.S.€commerce.€€ForÐ lD Ðexample,€the€controlled€foreign€subsidiary€of€aÐ DhE Ðdomestic€concern€might€furnish€to€a€boycottingÐ @F Ðcountry€information€the€subsidiary€obtained€fromÐ ôG Ðthe€U.S.-located€parent€for€that€purpose.€€TheÐ ÌðH Ðsubsidiaryððs€furnishing€would,€in€theseÐ ¤ÈI Ðcircumstances,€constitute€an€activity€in€U.S.Ð | J Ðcommerce.€€See€ðð760.1(d)(8)€of€this€part.Ð TxK ÐÌWhere€the€furnishing€of€information€is€not€itselfÐ  (M Ðin€U.S.€€commerce,€the€U.S.€commerceÐ Ü N Ðrequirement€may€be€satisfied€by€the€fact€that€theÐ ´!ØO Ðfurnishing€is€related€to€an€activity€in€U.S.€foreignÐ Œ"°P Ðor€domestic€commerce.€€For€example,€if€aÐ d#ˆQ Ðshipment€of€goods€by€a€controlled-in-fact€foreignÐ <$`R Ðsubsidia