(3) A majority of the members of the board of directors of the foreign subsidiary or entity are also members of the comparable governing body of the domestic concern;

(4) The domestic concern has the authority to appoint the majority of the members of the board of directors of the foreign subsidiary or entity; or

(5) The domestic concern has the authority to appoint the chief operating officer of the foreign subsidiary or entity.

[50 FR 53309, Dec. 31, 1985, as amended at 51 FR 39656, Oct. 30, 1986]

(2) Providing equal employment opportunity for all employees without regard to race or ethnic origin;

(3) Assuring that the pay system in South Africa is applied to all employees without regard to race or ethnic origin;

(4) Establishing a minimum wage and salary structure based on the appropriate local minimum economic level which takes into account the needs of employees and their families;

(5) Increasing by appropriate means the number of persons in managerial, supervisory, administrative, clerical and technical jobs who are disadvantaged by the apartheid system for the purpose of significantly increasing their representation in such jobs;

(6) Taking reasonable steps to improve the quality of employees' lives outside the work environment with respect to housing, transportation, schooling, recreation, and health;

(7) Implementing fair labor practices by recognizing the right of all employees, regardless of racial or other distinctions, to self-organization and to form, join or assist labor organizations, freely and without penalty or reprisal, and recognizing the right to refrain from any such activity.

(b) The supplement to this subchapter contains illustrative examples of the fair labor practices referred to in this subchapter.

[50 FR 53310, Dec. 31, 1985, as amended at 51 FR 39656, Oct. 30, 1986]

§ 61.3 Office of Southern African Affairs.

"Office of Southern African Affairs" means the Office of Southern African Affairs, Bureau of African Affairs, Department of State, Washington, D.C. 20520.

§ 61.4 United States.

"United States," when used in the geographical sense, includes the several States, the Commonwealth of Puerto Rico, the insular possessions of the United States, and the District of Columbia.

§ 61.5 U.S. National.

For purposes of this subchapter, "U.S. national" means:

& Citizens or nationals of the United States or permanent residents if the United States (defined in the mmigration and Nationality Act (8 TEC 1101(a)(20), 60 Stat. 163)); and

1 Corporations, partnerships, and Ther business associations organized inder the laws of the United States, my state or territory thereof, or the District of Columbia.

50 FR 13310, Dec. 31, 1985, as amended at a FR 39656. Oct. 30, 1986]

PART 62-REGISTRATION

21 Registration.

Notification of changes in information furnished by registrants. 23 Maintenance of records by registrants. 2 Namibia.

AUTHORITY: Sec. 203, International EmerPicy Economic Powers Act (50 U.S.C. T: E.O. 12532, Sept. 9, 1985 (50 FR 888 secs. 207, 208, 601, 603, and 604, the Lamprehensive Anti-Apartheid Act of 1986 Pia L 99-440).

Jorace 50 FR 53310, Dec. 31, 1985, unless therwise noted.

El Registration.

Any U.S. national referred to in il 2 is required to register with the Department of State and to indicate whether the U.S. national or entity reerred to in § 60.2 agrees to implement de principles stated in § 61.2. They nay also indicate whether they are articipants in the voluntary Sullivan ystem. Registration can be accompished by filing a completed form DSP-95 with the Office of Southern threan Affairs. Any such national vto believes that it should not be remired or is unable to report on the ar labor practices of a foreign subsidary or entity described in § 60.2 (c) of as subchapter should provide a dealed explanation of the reasons. The planation should be in the form of a etter, and should accompany the competed registration form. A detailed mestionnaire on fair labor practices w be provided by the Office of Southern African Affairs on an annual asis to all registrants. No fee is rejured for registration.

§ 62.2 Notification of changes in information furnished by registrants.

A registered U.S. national must notify the Department of State of any material changes in the information contained in the registration. Examples of material changes include the establishment, acquisition, or sale of a subsidiary or of a foreign affiliate, a merger, a change of location, or engaging in a different kind of business in South Africa and Namibia. Such information should be provided within 60 days from the date of the material change.

[50 FR 53310, Dec. 31, 1985, as amended at 51 FR 39656, Oct. 30, 1986)

§ 62.3 Maintenance of records by registrants.

(a) A U.S. national who is required to register pursuant to § 62.1 must maintain records concerning the fair labor practices employed in South Africa and Namibia by the U.S. national or any entity referred to in § 60.2 effective January 1, 1986. Such records must be maintained for a period of 3 years.

(b) Records maintained under this section shall be available at all times for inspection by the Director of the Office of Southern African Affairs or a person designated by the Director. [50 FR 53310, Dec. 31, 1985, as amended at 51 FR 39656, Oct. 30, 1986]

36861); secs. 207, 208, 601, 603, and 604, the Comprehensive Anti-Apartheid Act of 1986 (Pub. L. 99-440).

SOURCE: 50 FR 53310, Dec. 31, 1985, unless otherwise noted.

§ 63.1 General policies.

(a) General. Any U.S. national or entity described in § 60.2 who does not adhere to the fair labor standards stated in § 61.2 of this subchapter shall be ineligible to receive the assistance specified in § 65.1 (b).

(b) Failure to register. Any such U.S. national who does not register with the Department of State prior to February 15, 1986, in accordance with § 62.1 shall be ineligible for the assistance specified in § 65.1 and shall be subject to the penalties specified in § 65.2.

(c) Annual reports. All U.S. nationals subject to the requirements of this subchapter shall provide an annual report to the Department of State describing their implementation of the fair labor principles specified in § 61.2, including implementation by any entity described in § 60.2. They shall do so by submitting a completed questionnaire furnished by the Department of State at the time of registration to the Office of Southern African Affairs. The first report shall be provided no later than February 15, 1987.

(d)(1) Sullivan participants. Any U.S. national who is a bona fide participant in the Sullivan reporting and implementing system is exempt from submitting the questionnaire referred to in paragraph (c) of this section. "Bona fide" participation means (i) subscribing to the Sullivan Code and (ii) filing the report required by the Sullivan monitoring mechanism with that organization and (iii) receiving a Category I, II, or IIIA standing. Bona fide participants are deemed to be adhering to the fair labor standards for purposes of this subchapter. Such U.S. nationals shall be required to file a letter with the Office of Southern African Affairs on an annual basis certifying that they are bona fide participants in the Sullivan system. Each such letter shall be provided not later than February 15 of each calendar year, commencing on February 15,

1987. Each such letter shall include the following statement:

I certify that [name of firm] is a bona fide participant in the Sullivan system for fiscal year [insert], and the firm received a [insert] rating from the Sullivan system for that period.

Any U.S. national participating in the Sullivan system who receives a Category IIIB standing must inform the Department of State by February 15. If such a national receives a Category IIIB standing for the next fiscal year, it shall not be deemed to be a bona fide participant pursuant to this subsection and must thereafter complete the required State Department questionnaire.

(2) U.S. nationals who become participants in the Sullivan system in 1986 will be required to submit the first letter referred to in paragraph (d)(1) of this section no later than November 15, 1987.

nation from the U.S. national and take any steps that may be deemed necessary to verify the information submitted.

(b) If the Office of Southern African Affairs concludes that a person is not aking such steps, it shall afford the person thirty days to provide additional written information to the Department of State.

(c) If a U.S. national who was a paracipant in the Sullivan system does not file the reports required by the Sullivan monitoring system or otherwise fails to meet the standards for continued participation in the Sullivan system, the U.S. national shall immetately inform the Department of State. Such notification should be pronded no later than 30 days after receipt of a notification from the Sullivan system that the person is no longer a bona fide participant.

$43.4 Waiver.

The Director, Office of Southern African Affairs, may make exceptions to the provisions of this subchapter in ases of exceptional or undue hardship or when it is otherwise in the interest of the United States Governrent.

PART 64-ADMINISTRATIVE PROVISIONS

and other U.S. Government agencies by appropriate means.

(b) Any U.S. national who has been the subject of an adverse decision pursuant to paragraph (a) of this section shall be entitled to file a written appeal within 30 days of notification of the decision with the Board of Appellate Review of the Department of State. The requirements of Part 7 of Subchapter A of this title of CFR shall be applicable to proceedings before the Board of Appellate Review. § 64.2 Annual report.

The Office of Southern African Affairs shall prepare an annual report regarding implementation of Part 63 of this subchapter, which shall be forwarded to other affected U.S. Government agencies and the appropriate committees of the United States Congress.

§ 64.3 Disclosure of information to the public.

Subchapter R of this title of CFR contains regulations on the availability to the public of information and records of the Department of State. The provisions of Subchapter R apply to such disclosures by the Office of Southern African Affairs.

PART 65-NON-ADHERENCE AND PENALTIES

14.1 Administrative procedures. 44.2 Annual report.

14.3 Disclosure of information to the public.

AUTHORITY: Sec. 203, International Emerency Economic Powers Act (50 U.S.C. 17: E.O. 12532, Sept. 9, 1985 (50 FR 36861); secs. 207, 208, 601, 603, and 604, the Comprehensive Anti-Apartheid Act of 1986 Pub. L. 99-440).

SOURCE: 50 FR 53311, Dec. 31, 1985, unless atherwise noted.

3 64.1 Administrative procedures.

(a) If the Assistant Secretary for African Affairs concludes that a U.S. national or entity referred to in § 60.2 is not adhering to the principles specifed in § 61.2, the Office of Southern African Affairs shall immediately inform the U.S. national concerned

Sec.

65.1 Denial of export marketing support. 65.2 Civil and criminal penalties.

AUTHORITY: Sec. 203, International Emergency Economic Powers Act (50 U.S.C. 1701); E.O. 12532, Sept. 9, 1985 (50 FR 36861); secs. 207, 208, 601, 603, and 604, the Comprehensive Anti-Apartheid Act of 1986 (Pub. L. 99-440).

§ 65.1 Denial of export marketing support.

(a) In accordance with Part 63 of this subchapter, no department or agency of the United States may intercede with any foreign government or foreign national regarding export marketing activity in any country of any U.S. national or entity referred to in § 60.2 who does not adhere to the principles stated in § 61.2 with respect to

(b) For purposes of this section, “intercede with any foreign government regarding export marketing activity" means any contact by U.S. Government personnel with officials of any foreign government or foreign national which involves or contemplates any effort to assist in selling a good, service, or technology in a foreign market. The following are examples of the activities prohibited:

(1) Assisting non-complying firms by arranging appointments with foreign government officials or foreign nationals relating to the pursuit by the firm of a bid, project, or other commercial activity.

(2) Intervening with a foreign government on behalf of a non-complying firm in pursuit of a bid or project, unless such intervention is necessary to ensure a foreign government's compliance with its obligations, if any under the Agreement on Government Procurement of April 12, 1979 (T.I.A.S. No. 10403);

(3) Assisting non-complying firms in obtaining end-user or other foreign government certificates or documentation necessary for the issuance of U.S. export licenses;

(4) Taking any action to assist a noncomplying firm in selling its products, services or technology in a foreign market, including assistance in making appeals regarding foreign government procedures and practices adversely affecting the firm's ability to gain access to the foreign marketplace;

(5) Participation by non-complying firms in Department of Commerce sponsored trade exhibitions and video catalog shows, trade missions and certified shows in foreign countries.

(c) The following activities with respect to non-complying firms are not prohibited pursuant to this section of the Executive Order:

(1) Preparing market research for use by more than one company and providing general export information;

(2) Distributing generally available informational publications such as Overseas Business Reports, Foreign Economic Trends, and Business America; and

(3) Multilateral and bilateral, government-to-government trade negotiations to resolve trade issues which may affect non-complying firms.

[50 FR 53311, Dec. 31, 1985, as amended at 51 FR 39656, Oct. 30, 1986]

§ 65.2 Civil and criminal penalties.

(a) This subchapter is promulgated pursuant to the authority of E.O. 12532 and the International Emergency Economic Powers Act (50 U.S.C. 1705) (IEEPA) and the Comprehensive Anti-Apartheid Act of 1986 (Pub. L. 99-440). Section 206 of the Comprehensive Anti-Apartheid Act are applicable to violations of this subchapter and to any license, ruling, regulation, order, direction, or instruction issued hereunder. These criminal and civil penalties are applicable to failures to comply with the registration and reporting requirements established in this subchapter. However, they are not applicable to failures to adhere to the principles stated in § 61.2.

(b) Attention is also directed to 18 U.S.C. 1001, which provides:

Whoever, in any manner within the jurisdiction of any department or agency of the United States knowingly and willfully falsifies, conceals or covers up by any trick, scheme, or device a material fact, or makes any false, fictitious or fraudulent statement or representation or makes or uses any false writing or document knowing the same to contain any false, fictitious or fraudulent statement or entry, shall be fined not more than $10,000 or imprisoned not more than five years, or both.

(c) This section does not apply to the financing of exports by the Export-Import Bank to South Africa. Such financing continues to be the subject of the requirements contained in section 2(b)(9) of the Export-Import Bank Act of 1945, as amended by section 204 of the Comprehensive AntiApartheid Act of 1986, and other requirements of the latter Act.

[50 FR 53312, Dec. 31, 1985, as amended at 51 FR 39656, Oct. 30, 1986] APPENDIX TO SUBCHAPTER G-EXAMPLES OF FAIR LABOR PRACTICES

The following are illustrative examples of the fair labor standards specified in § 61.2.