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(e) When he is under 21 years of age and is a member of the household of an official or employee of a foreign government or of the United Nations and is in possession of or included in a foreign passport;

(f) When he is a child under 12 years of age and is included in the foreign passport of an alien parent; however, such child will be required to provide evidence of his U.S. citizenship when entering the United States;

(g) When the citizen entering the United States presents a card of identity and registration issued by a consular office abroad to facilitate travel to the United States; or

(h) When specifically authorized by the Secretary of State through appropriate official channels to depart from or enter the United States, as defined in § 50.1 of this chapter. The fee for a waiver of the passport requirement under this section shall be collected in

the amount prescribed in the Schedule of Fees for Consular Services (22 CFR 22.1).

[31 FR 13546, Oct. 20, 1966, as amended at 37 FR 11459, June 8, 1972; 51 FR 26247, July 22, 1986]

§ 53.3 Attempt of a citizen to enter without a valid passport.

The appropriate officer at the port of entry shall report to the Secretary of State for the purpose of invoking the waiver provisions of § 53.2(h), any citizen of the United States who attempts to enter the United States contrary to the provisions of this part.

§ 53.4 Optional use of a valid passport.

Nothing in this part shall be construed to prevent a citizen from using a valid passport in a case in which that passport is not required by this Part 53, provided such travel is not otherwise prohibited.

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SUBCHAPTER G-SOUTH AFRICA AND FAIR LABOR STANDARDS

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(a) Section 2 of Executive Order 12532 of September 9, 1985 (50 FR 36861) provides that it is the policy of the United States to encourage all United States firms in South Africa to adhere to certain fair labor standards. The Comprehensive Anti-Apartheid

Act of 1986 (Pub. L. 99-440) (hereinafter referred to as the Act) codifies section 2 of the Executive Order 12532. Section 207(a) of the Act also provides that nationals of the United States who employ more than 25 persons in South Africa and Namibia shall take the steps necessary to ensure that the fair labor principles codified in the Code of Conduct (section 208(a) of the Act and § 61.2 of this subchapter) are implemented. In addition, section 207(b) provides that no department of agency of the U.S. may intercede with any foreign government or foreign national regarding the export marketing activities in any country of any national of the U.S. employing more than 25 individuals in South Africa who does not implement the Code of Conduct. It is the purpose of this subchapter to implement these requirements of E.O. 12532 and Pub. L. 99-440.

(b) Relation to the Voluntary Sullivan System. It has been the policy of the United States since 1977 to encourage voluntary adherence to the Sullivan Code agreed to by a majority of U.S. business firms that operate in South Africa. The requirements of the voluntary code exceed those of the E.O. 12532 in certain respects, and the voluntary nature of the code has set

an example for all firms in South Africa. The regulations set forth in this subchapter recognize that some U.S. nationals are not willing to subscribe to the Sullivan Code, and these regulations do not require firms to subscribe to the voluntary system. All U.S. nationals described in § 62.2 and § 63.1 are subject to the requirements of this subchapter. Such nationals who are bona fide participants in the Sullivan system are exempt from certain reporting requirements in accordance with § 63.1(d).

[50 FR 53309, Dec. 31, 1985, as amended at 51 FR 39655, Oct. 30, 1986]

§ 60.2 Scope of application.

The requirements of this subchapter are applicable to U.S. nationals (defined in § 61.5) who:

(a) Employ at least 25 individuals in South Africa and Namibia;

(b) Own or control more than 50 percent of the outstanding voting securities of a foreign subsidiary or other entity that employs at least 25 individuals in South Africa and Namibia; or

(c) Control in fact any other foreign entity that employs at least 25 individuals in South Africa and Namibia. Such control consists of the authority or ability of the domestic concern to establish or direct the general policies or day-to-day operations of a foreign subsidiary or entity in South Africa and Namibia. Such authority or ability will be presumed under the circumstances described below, subject to rebuttal by competent evidence provided to the Department of State at the time of registration (see § 62.1):

(1) The domestic concern beneficially owns or controls (whether directly or indirectly) 25 percent or more of the voting securities of the foreign subsidiary or entity, if no other person owns or controls (whether directly or indirectly) an equal or larger percentage;

(2) The foreign subsidiary or entity is operated by the domestic concern pursuant to the provisions of an exclusive management contract;

(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]

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(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:

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Any U.S. national referred to in § 60.2 is required to register with the Department of State and to indicate whether the U.S. national or entity referred to in § 60.2 agrees to implement the principles stated in § 61.2. They may also indicate whether they are participants in the voluntary Sullivan system. Registration can be accomplished by filing a completed form DSP-95 with the Office of Southern African Affairs. Any such national who believes that it should not be required or is unable to report on the fair labor practices of a foreign subsidiary or entity described in § 60.2 (c) of this subchapter should provide a detailed explanation of the reasons. The explanation should be in the form of a letter, and should accompany the completed registration form. A detailed questionnaire on fair labor practices will be provided by the Office of Southern African Affairs on an annual basis to all registrants. No fee is required 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]

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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.

§ 63.2 Influencing activities outside the workplace.

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U.S. nationals referred to in subsection § 60.2 are encouraged to take rea-e sonable measures to extend the scope of their influence on activities outside it the workplace by measures such as:

(a) Supporting the right of all businesses, regardless of the racial character of their owners or employees, to locate in urban areas;

(b) By influencing other companies in South Africa and Namibia to follow the principles specified in § 62.2;

(c) By supporting the freedom of mobility of all workers, regardless of race, to seek employment opportunities wherever they exist, and

(d) By making provision for adequate housing and education for families of employees within the proximity. of the employee's place of work.

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

§ 63.3 State Department review.

(a) The Office of Southern African Affairs shall review each report submitted pursuant to § 63.1(c) to determine whether the U.S. national is adhering to the principles stated in § 61.2. The Office of Southern African Affairs may request additional infor

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