modity. The letter shall be accompanied by an International Import Certificate, an ultimate consignee statement, or other documentation required by the Export Administration Regulations for the country of ultimate destination, as provided for license applications in §§ 375.1, 375.2, 375.3, and 375.4 of this subchapter. Where none of these sections apply to the transaction, the letter shall include the intended enduse of the commodities.

(iii) Where the letter request is approved and is supported by a foreign import certificate (other than a Swiss Blue Import Certificate), no further approval from the Office of Export Administration is required for the purchaser or transferee to resell or again transfer the commodities. However, where the Office of Export Administration approves a request that was not supported by a foreign import certificate, the person to whom approval is granted is required to inform the purchaser or transferee, in writing, that the commodities are to be shipped to the approved destination only and that no other disposition of the commodities is permitted without the approval of the Office of Export Administration. (Authority to further resell or transfer the commodities does not relieve any person from complying with foreign laws. See § 373.1(a) of this subchapter.)

(iv) If the transaction is approved, a validated letter of approval will be sent to the U.S. purchaser for retention in his records. Where a Delivery Verification Certificate or other official government confirmation of delivery is required, the letter will so indicate.

(v) If the commodities covered by an International Import Certificate have been imported into a destination other than the United States and the foreign exporter of the commodities requests a Delivery Verification Certificate, the person who obtained the International Import Certificate shall obtain a Delivery Verification Certificate from the person to whom the commodities were delivered in the actual importing country. (If a Delivery Verification Certificate is unobtainable, other official government confirmation of delivery shall be obtained. The Delivery Verification Certificate or other official government confirmation of delivery shall be submitted to the Office of Export Administration, together with an explanatory letter giving the Import Certificate number, date issued, and lo

cation of issuing office. The Office of Export Administration will then issue a Delivery Compliance Notice, Form IA-956, in two copies, the original of which shall be forwarded to the country of origin in order to serve as evidence to the exporting country that the requirements of the U.S. Government have been satisfied with respect to delivery of the commodities.

(9) Delivery, sale, or transfer of commodities to another U.S. purchaser. (1) Commodities covered by an International Import Certificate may not be sold, and title to or possession of such commodities may not be transferred, to another U.S. purchaser or transferee before the commodities are delivered to the United States (or to an approved foreign destination, as provided by subparagraph (8) of this paragraph), except in accordance with the provisions described in subdivision (ii) of this subparagraph. The provisions of this subparagraph do not apply after the commodities have been delivered in accordance with the undertaking set forth in the certificate.

(ii) Resale or transfer to another U.S. purchaser or transferee requires the prior approval of the Office of Export Administration only in cases where the buyer or transferee is listed in Supplement No. 1 to Part 388, Table of Denial and Probation Orders. However, the person who obtained the international import certificate is required to notify the Office of Export Administration of any change in facts or intentions relating to the transaction, and in all cases that person is held responsible for the delivery of the commodities in accordance with the Export Administration regulations. The seller or transferor is therefore required in all cases to secure, prior to sale or transfer, and to retain in his files for 2 years, written acceptance by the purchaser or transferee of (a) all obligations undertaken by, and imposed under the Export Administration regulations upon, the holder of the certificate; and (b) an undertaking that all subsequent sales or transfers will be made subject to the same conditions.

(iii) The responsibility of the International Import Certificate holder for obtaining a Delivery Verification Certificate also applies to those cases where the commodities are resold to a U.S. purchaser. This is explained fully in § 386.3 (a) (1).

(10) Reexport or transshipment of commodities after delivery to United States. Commodities imported into the United States under the provisions of a

U.S. International Import Certificate may not be reexported to any destination under the provisions of General License GIT (see § 371.4 of this subchapter). However, all other provisions of the Export Administration Regulations applicable to commodities of domestic origin shall apply to the reexport of commodities of foreign origin shipped to the United States under a U.S. International Import Certificate.

(11) Lost, destroyed, or unused International Import Certificates (1) Lost or destroyed Certificates. Where an Interrational Import Certificate is lost or destroyed, a duplicate copy may be obtained by the person in the United States who executed the original Certificate by submitting to any of the offices listed in subparagraph (2) of this paragraph new Forms FC-826 and FC-827 in the same way as an original request, except that the forms shall be accompanied by a letter detailing the circumstances under which the original International Import Certificate was lost or destroyed and certifying:

(a) That the original International Import Certificate No. dated

issued to (name and address of U.S. importer) for import from (foreign exporter's name and address) has been lost or destroyed; and

(b) That if the original International Import Certificate is found, the applicant agrees to return the original or duplicate of the Certificate to the Office of Export Administration.

(ii) Unused Certificates. Where the transaction will not be completed and the International Import Certificate will not be used, the Certificate shall be returned for cancellation to the Office of Export Administration (Attention: 852), U.S. Department of Commerce, Washington, D.C. 20230.

[13th Gen. Rev. of Export Regs., 35 F.R. 9109, June 12, 1970, as amended by Amdt. 11, 35 F.R. 18316, Dec. 2, 1970; Amdt. 14, 36 F.R. 3347, Feb. 23, 1971; Amdt. 15, 36 F.R. 4375, Mar. 5, 1971; Amdt. 28, 36 F.R. 22010, Nov. 18, 1971; Amdt. 34, 37 FR 5623, Mar. 17, 1972; 39 FR 39034, Nov. 5, 1974] § 368.3

Delivery Verification Certificate.

(a) Requirements-(1) General. (i) U.S. importers may be requested by their foreign exporters to supply them with a certified Form FC-908, U.S. Delivery Verification Certificate (see Supplement S-19 for facsimile), covering commodities imported into the United States.

These requests are made by foreign governments to assure that strategic commodities shipped to the United States are not diverted from their intended destination. In these instances, the issuance of an export license by the foreign country is conditioned upon the subsequent receipt of a Delivery Verification Certificate from the U.S. importer.

(ii) The responsibility of a person or firm executives a U.S. International Import Certificate for providing the foreign exporter with confirmation of delivery of the commodities includes instances where the commodities are resold or transferred to another U.S. person or firm prior to actual delivery to the United States or to an approved foreign destination. The person who executed the Certificate shall secure in writing from the U.S. purchaser or transferee, and retain in his files for 2 years, (a) acceptance of the obligation to provide him with either the Delivery Verification Certificate (or other official government confirmation of delivery if a Delivery Verification Certificate is unobtainable) or assurance that this document was submitted to the Office of Export Administration; and (b) an undertaking that each succeeding U.S. transferee or purchaser will assume the same obligation or assurance. In each case the seller or transferor shall transmit to the U.S. purchaser or transferee the identification number of the International Import Certificate covering the export from the foreign country and request that they pass it on to any other U.S. purchasers or transferees.

(iii) Failure of the U.S. importer to comply with his foreign exporter's request for a Delivery Verification Certificate will result in the exporter's inability to fulfill his obligation to his government and may result in his being denied further export licenses and/or subjected to other penalties. Obviously, this would prevent the U.S. importer from participating in further import transactions with that foreign exporter. It also may result in the U.S. importer being prevented from trading with the exporting country requesting the Delivery Verification Certificate.

(2) Completion and disposition of Delivery Verification Certificates. A U.S. importer who is required by the foreign government to obtain a Delivery Verification Certificate shall present Form FC-908, Delivery Verification Certificate revised October 15, 1969, in duplicate, to a U.S. customs office. A Delivery Verifica

Section 3(5) of the Export Administration Act of 1969, as amended, declares that it is the policy of the United States "to oppose restrictive trade practices or boycotts fostered or imposed by foreign countries against other countries friendly to the United States." The portion of Section 4(b) (1) of the Act implementing this policy provides that "all domestic concerns receiving requests for the furnishing of information or the signing of agreements as specified in . . . (Section 3(5)) must report this fact to the Secretary of Commerce for such action as he may deem appropriate to carry out the purposes of that Section.”

§ 369.2

Discrimination on the basis of race, color, religion, sex, or national origin.

(a) Prohibition of compliance with requests. All exporters and related service organizations (including, but not limited to, banks, insurers, freight forwarders, and shipping companies) engaged or involved in the export or negotiations leading towards the export from the United States of commodities, services, or information, including technical data (whether directly or through distributors, dealers, or agents), are prohibited from taking any action, including the furnishing of information or the signing of agreements, that has the effect of furthering or supporting a restrictive trade practice fostered or imposed by foreign countries against other countries friendly to the United States, which practice dis

criminates, or has the effect of discriminating, against U.S. citizens or firms on the basis of race, color, religion, sex, or national origin.

(b) Examples of requests. To be subject to the requirements of this § 369.2, the discrimination sought to be effectuated by the request must be directed at a particular race, color, religion, sex, or national origin. There are many words or phrases that could place a request in this category. Examples are inquiries as to the place of birth or the nationality of parents of employees, stockholders, or directors, or inquiries as to whether they are "Jewish," "negro," "female," etc. Further examples are inquiries using any code words to further or support discrimination on the basis of race, color, religion, sex, or national origin.

(1) The following are examples of types of documents in which such requests might originate, but should not be interpreted as comprehensive.

(i) A questionnaire asking whether a U.S. firm is owned or controlled by persons of the Jewish faith, or whether it has Jews on its board of directors, or inquiring as to the national origin of a U.S. firm's stockholders or directors. This type of inquiry may also take the form of a required certification. (Similar questions aimed at determining whether a U.S. firm is owned or controlled by Israeli nationals would not fall in this category, but would be covered by § 369.3.)

(ii) A contractual clause that would prohibit using the goods or services of a Jewish subcontractor.

(iii) A requirement that a U.S. firm not send persons of a particular religion to a country where it performs services. (A general requirement that a U.S. firm performing services in a country comply with all laws and administrative practices of the country is not deemed per se to constitute a restrictive trade practice for purposes of this § 369.2. However, agreeing to such a requirement does not authorize the firm to cooperate with a country's discriminatory visa restrictions by failing to submit visa applications for any of its qualified employees of a particular religion. Such action would constitute a prohibited act of discrimination.)

§ 369.3 Other restrictive trade practices or boycotts.

(a) Policy concerning compliance with requests. All exporters and related service organizations engaged or involved in

the export or negotiations leading to the export from the United States of commodities, services, or information, including technical data (whether directly or through distributors, dealers, or agents), are encouraged and requested to refuse to take any action, including the furnishing of information or the signing of agreements, that has the effect of furthering or supporting other restrictive trade practices or boycotts fostered or imposed by foreign countries against any country not included in Country Groups S, W, Y, or Z. It should be noted that the boycotting of a U.S. firm by another U.S. firm in order to comply with a restrictive trade practice by foreign countries against other countries friendly to the United States may constitute a violation of United States antitrust laws.

(b) Examples of requests. (1) Basically this Section covers restrictive trade practice requests to implement economic sanctions applied by one country against another country friendly to the United States. These are aimed at restricting certain types of business relationships that U.S. firms might otherwise undertake. The requests may be aimed at a particular country, nationals of that country, or firms or organizations that may be involved in commercial or other activity with a particular country. They may take the form of a request for a certification as to the "nationality" of individuals (e.g. "Israeli" or "South African," as opposed to national origin or ethnic background), the country of origin of the goods, or the absence of a firm from the "blacklist" of a country or group of countries. The following are other examples of requests in this category, but should not be interpreted as being comprehensive.

(i) A request for information as to whether the U.S. exporter or any subsidiary or affiliate of the U.S. exporter has, or intends to have, any stockholders, owners, employees, or officers who are nationals of a boycotted country.

(ii) A request for information as to whether the U.S. exporter or any subsidiary or affiliate of the U.S. exporter has, or intends to have, any business relationship with a boycotted country or a national of a boycotted country. These business relationships include, but are not limited to, trade in commodities or technical know-how, licensing arrangements, advertising or promotion of sale of goods originating in a boycotted coun

try, or use of such goods as components in a manufacturing process.

(iii) A request for information as to whether the U.S. exporter or any subsidiary or affiliate of the U.S. exporter does any business, or intends to do any business, with any firm that has a business relationship with a boycotted country or a national of a boycotted country.

(iv) A request for information as to whether the U.S. exporter or any subsidiary or affiliate of the U.S. exporter has any investments, including branches, subsidiaries, affiliates, or holdings, or any commercial or legal representation in a boycotted country, or a business firm located in, or doing business in, a boycotted country.

(v) A restriction prohibiting the U.S. exporter or any subsidiary or affiliate of the U.S. exporter from using shipping or transportation facilities that are "blacklisted" by the importing country. (However, a request or restriction solely precluding the export of commodities to the importing country on (A) shipping or transportation facilities owned, controlled, operated, or chartered by a country or a national of a country friendly to the United States but not friendly to the importing country, or (B) a carrier that stops at a port in a country friendly to the United States but not friendly to the importing country prior to stopping at the port of unlading, is not deemed a restrictive practice within the meaning of Section 3(5) of the Export Administration Act, but rather a precautionary measure to avoid any risk of confiscation of the commodities. Accordingly, these two types of shipping restrictions are exempted from the reporting requirement of this section.)

§ 369.4

Reporting requirements.

Any U.S. exporter receiving or informed of a request for an action, including the furnishing of information or the signing of agreements, that has the effect of furthering or supporting a restrictive trade practice or boycott, as described in §§ 369.2 or 369.3 above, shall report the request to the Office of Export Administration, Room 1617M, U.S. Department of Commerce, Washington, D.C. 20230. Where such request is received by any person or firm other than the exporter, handling any phase of the transaction for the exporter, that person or firm (forwarding agent, shipping company, bank, insurer, etc.) must also report the request to the Office of Export