Federal Register / Vol. 75, No. 154 / Wednesday, August 11, 2010 / Rules and Regulations 48555 

11. User assistance is available for 

eLibrary and the Commission’s Web site 

during normal business hours. For 

assistance, please contact Online 

Support at 1–866–208–3676 (e-mail at 

FERCOnlineSupport@ferc.gov), or the 

Public Reference Room at (202) 502– 

8371, TTY (202) 502–8659 (e-mail at 

public.referenceroom@ferc.gov). 

VII. Effective Date and Congressional 

Notification 

12. The provisions of 5 U.S.C. 801 

regarding Congressional review of final 

rules do not apply to this final rule, 

because the rule concerns agency 

procedure and practice and will not 

substantially affect the rights of nonagency parties. 

13. These regulations are effective on 

August 11, 2010. The Commission finds 

that notice and public comments are 

unnecessary because this rule concerns 

only agency procedure or practice. 

Therefore, the Commission finds good 

cause to waive the notice period 

otherwise required before the effective 

date of a final rule. 

List of Subjects in 18 CFR Part 376 

Civil defense, Organization and 

functions (Government agencies). 

By the Commission. 

Nathaniel J. Davis, Sr., 

Deputy Secretary. 

■ In consideration of the foregoing, the 

Commission amends part 376, chapter I, 

title 18, Code of Federal Regulations, as 

follows: 

PART 376—ORGANIZATION, MISSION, 

AND FUNCTIONS; COMMISSION 

OPERATION DURING EMERGENCY 

CONDITIONS 

■ 1. The authority citation for part 376 

continues to read as follows: 

Authority: 5 U.S.C. 553; 42 U.S.C. 7101– 

7352; E.O. 12009, 3 CFR 1978 Comp., p. 142. 

■ 2. In § 376.209, paragraphs (c)(11) and 

(12) are revised and paragraph (c)(13) is 

added to read as follows: 

§ 376.209 Procedures during periods of 

emergency requiring activation of the 

Continuity of Operations Plan. 

* * * * * 

(c) * * * 

(11) 30-day period for acting on 

requests for rehearing; 

(12) Time periods for acting on 

interlocutory appeals and certified 

questions; and 

(13) 90-day period for acting on 

applications requesting relief from, or 

reinstatement of, an electric utility’s 

mandatory purchase obligation pursuant 

to section 210(m) of the Public Utility 

Regulatory Policies Act of 1978. 

* * * * * 

[FR Doc. 2010–19779 Filed 8–10–10; 8:45 am] 

BILLING CODE 6717–01–P 

DEPARTMENT OF STATE 

22 CFR Part 62 

RIN 1400–AC15 

[Public Notice: 7114] 

Exchange Visitor Program—Trainees 

and Interns 

AGENCY: United States Department of 

State. 

ACTION: Final rule. 

SUMMARY: On June 19, 2007, the 

Department published an interim final 

rule amending its regulations regarding 

Trainees and Interns to, among other 

things, eliminate the distinction 

between ‘‘non-specialty occupations’’ 

and ‘‘specialty occupations,’’ establish a 

new internship program, and modify the 

selection criteria for participation in a 

training program. 

This document confirms the Interim 

Final Rule as final and amends the 

requirements to permit the use of 

telephone interviews to screen potential 

participants for eligibility, to remove the 

requirement that sponsors secure a Dun 

& Bradstreet report profiling companies 

with whom a participant will be placed 

and also amends this provision to 

provide clarification regarding the 

verification of Worker’s Compensation 

coverage for participants and use of an 

Employer Identification Number to 

ascertain that a third-party host 

organization providing training is a 

viable entity, and to clarify that trainees 

and interns may repeat training and 

internship programs under certain 

conditions. 

DATES: Effective September 10, 2010 this 

document confirms as final with 

changes, the interim final rule (E7– 

11703) published on June 19, 2007 

(72 FR 33669). 

FOR FURTHER INFORMATION CONTACT: 

Stanley S. Colvin, Deputy Assistant 

Secretary for Private Sector Exchange, 

U.S. Department of State, SA–5, 2200 C 

Street, NW., 5th Floor, Washington, DC 

20522–0505; or e-mail at 

JExchanges@state.gov. 

SUPPLEMENTARY INFORMATION: The 

Department published a Notice of 

Proposed Rulemaking (NPRM) on April 

7, 2006 (71 FR 17768), followed by the 

Interim Final Rule on June 19, 2007. 

Having thoroughly reviewed the 

comments received, the Department has 

determined that it will, and hereby 

does, adopt the Interim Final Rule with 

minor amendments to four regulatory 

provisions to provide greater specificity 

regarding the selection, screening, 

placement and monitoring of trainee 

and intern participants. 

Analysis of Comments 

The Interim Final Rule addressed 

almost 1,600 comments received in 

response to the NPRM. Subsequently, 

the Department received a total of 120 

comments involving multiple 

provisions of the Interim Final Rule. Of 

this total, 79 responses were identical 

form letters encouraged through a 

writing campaign directed by a third 

party organization that opposed the 

exclusion of trainees or interns from the 

field of veterinary sciences. As 

explained in both the proposed and 

interim final rules, the Department, as a 

matter of long established policy does 

not support use of the J–1 visa for 

clinical patient care including 

veterinary medicine. The sole exception 

to this policy are foreign medical 

graduates entering the United States for 

the purpose of graduate medical 

education of training. The activities 

undertaken by Foreign Medical 

Graduates (FMG) are specifically 

authorized by statute (The Mutual 

Educational and Cultural Exchange Act, 

as amended by the Health Care 

Professions Act, Pub. L. 94–484). The 

remaining 41 responses were from 

Exchange Visitor Program sponsors and 

the general public. The commenting 

parties addressed the following issues: 

One comment was received 

recommending that the trainee and 

intern categories be separated into two 

distinct categories and one comment 

proposed a moratorium on all training 

programs. These two comments are 

beyond the scope of the Interim Rule in 

that such action was not proposed, nor 

is it current practice. 

Six comments were received 

regarding § 62.22(b)(1), all of which 

were opposed to the requirement that 

internships must be related to the 

students’ fields of study; these 

comments recommended that the 

Department eliminate this requirement. 

The Department has determined that for 

participants to benefit from the 

Exchange Visitor Program, it is essential 

that their training and internship 

programs be in their fields of study, and 

that they are adequately advanced in 

their chosen career fields to benefit from 

program participation. Otherwise, the 

risk exists that persons participating in 

these internships could be seen as a 

source of labor, rather than interns 


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gaining hands-on experience in their 

chosen career fields. This aspect of this 

rulemaking is intended to correct 

potential deficiencies in this exchange 

category identified by the United States 

Government Accountability Office’s 

(GAO) October 2005 report entitled, 

‘‘Stronger Action Needed to Improve 

Oversight and Assess Risks of the 

Summer Work and Travel and Trainee 

Categories of the Exchange Visitor 

Program.’’ With respect to the 

importance of being adequately 

advanced in a career field, as an 

example, the Department questions 

whether an undergraduate with less 

than two semesters’ credit in the field of 

education is sufficiently advanced in his 

or her field to engage in a classroombased internship. Generally, it is 

common practice in the United States 

higher education community to pursue 

such experience during one’s junior or 

senior year of study. Accordingly, the 

Department makes no change to the 

current requirement that students 

participating in an internship do so in 

their fields of study. Participants with 

insufficient academic preparation have 

been viewed as potential replacements 

for American workers rather than bona 

fide interns by the Government 

Accountability Office, as the activity is, 

or cannot be distinguished from 

ordinary work. Trainees and interns are 

therefore necessarily excluded from 

participation until such time as they 

have acquired sufficient education to 

justify this valuable experiential 

learning opportunity designed to further 

an established career track rather than to 

provide temporary employment to the 

non-immigrant alien. Further, and of 

particular concern to the Department is 

the past practice of placing participants 

as counter help in quick service 

restaurants or other counter service 

positions. The Department has found 

that training and internship placement 

plans submitted for these visitors are 

either questionable or in fact not 

adhered to by the third party host 

organizations. The Department finds 

that counter help positions are unskilled 

and casual labor. Placement of 

participants in these positions are 

prohibited as they are not suitable 

placements for interns and trainees and 

are seen as extended Summer Work 

Travel programs, and may bring the 

Department and the Exchange Visitor 

Program into notoriety and disrepute 

due to the potential displacement of 

American workers. 

Fifteen (15) comments were received 

regarding § 62.22(d)(1). This regulation 

requires sponsors to ensure that trainees 

and interns have verifiable English 

language skills sufficient to function on 

a day-to-day basis in a training or 

internship environment. English 

language proficiency should, 

necessarily, be verified by a recognized 

English language test, by signed 

documentation from an academic 

institution or English language school, 

or through a measurable process (i.e., an 

interview conducted by the sponsor in 

person, or by video conference). All 

comments suggested that telephone 

interviews also be permitted, as such 

telephonic interviewing is widely 

utilized in the business environment 

and deemed both reliable and sufficient. 

Noting that video conferencing is not as 

prevalent in some countries as in the 

United States, the Department agrees 

that use of telephone interviews is 

appropriate only if the availability of 

video conferencing is not available. The 

Department anticipates that sponsors 

will pursue diligently the video 

conferencing approach and will use 

telephone interviews as a secondary or 

tertiary method of determining English 

language proficiency. The text of 

§ 62.22(d)(1) has been amended 

accordingly. The Department notes that 

many sponsors have already adopted 

this practice. Regardless of how the 

interview is conducted, sponsors’ 

conclusions regarding English language 

proficiency must be documented and 

such information maintained by the 

sponsor in either documentary or 

electronic format for a three-year period 

following the completion of the 

exchange visitor’s exchange program as 

stipulated in 22 CFR 62.10(h). 

Fourteen (14) comments were 

received regarding § 62.22(d)(2), all of 

which opposed an eligibility 

requirement that trainees possess a 

degree or professional certificate from a 

foreign post-secondary academic 

institution and at least one year of prior 

related work experience in their 

occupational field acquired outside the 

United States, or, in the alternative, five 

years of work experience outside the 

United States in their occupational 

field. These comments recommended 

that two years of work experience, 

rather than five, be required. Two 

additional comments recommended that 

trainees should be eligible to participate 

in a training program directly following 

graduation rather than after obtaining a 

year of experience. The Department 

takes administrative notice of the GAO 

October 2005 report referenced above. 

This report highlighted the potential for 

the Trainee Program to be misused as an 

employment program, suggesting that 

negative experiences for exchange 

participants could undermine the public 

diplomacy underpinnings of the 

program. The Department’s acceptance 

of these concerns prompted an overhaul 

of regulations governing the Trainee 

category and the publication of the 

NPRM followed by the Interim Final 

Rule that has been in effect since July 

19, 2007. The Interim Final Rule 

eliminated the ‘‘non-specialty’’ and 

‘‘specialty’’ categorizations of training 

activities, establishing in its place a 

‘‘trainee,’’ ‘‘intern’’ and ‘‘student intern’’ 

category, with participant eligibility 

requirements to ensure that the 

programs in these categories operate as 

intended and are not abused. With the 

benefit of two years of experience with 

these requirements, the Department 

finds that the Interim Final Rule 

eligibility requirements have addressed 

GAO concerns regarding program abuse; 

therefore, the Department sees no need 

to modify these requirements. 

Nine (9) comments were received 

regarding § 62.22(f)(2)(vi), which 

requires that training and internship 

program sponsors certify that training 

and internship programs in the field of 

agriculture conform with the 

requirements of the Fair Labor 

Standards Act, as amended, and the 

Migrant and Seasonal Agricultural 

Worker Protection Act, as amended. The 

Department finds that these comments 

offered no compelling reason why 

agricultural training and internship 

programs should not meet the statutory 

protections afforded all workers in the 

United States. Thus, the Department has 

determined that this requirement is 

necessary to ensure the appropriate 

protections and treatment of foreign 

nationals, and makes no modification to 

these requirements. 

One comment was received regarding 

§ 62.22(g)(3)(i), the screening and 

vetting of host organizations. This 

comment opposed the collection of Dun 

& Bradstreet Identification Numbers. 

The requirement of a Dun & Bradstreet 

number was proposed to help the 

Department ensure the bona fides of a 

potential third party provider with 

whom sponsors contract for exchange 

visitor program-related services, or with 

whom they place program participants. 

The Department has examined further 

this interim requirement for a Dun & 

Bradstreet number and has determined 

that the potential financial and resource 

implications, to be borne by designated 

sponsors outweigh the utility of the 

report for oversight purposes. 

Accordingly, the Department has 

removed this requirement in the final 

rule. 

A comment was received opposing 

site visits of host organizations by 

sponsors. The Department takes this 


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Federal Register / Vol. 75, No. 154 / Wednesday, August 11, 2010 / Rules and Regulations 48557 

opportunity to again draw attention to 

the sponsor’s responsibility to ensure 

that host organizations for trainees and 

interns possess and maintain both the 

ability and resources to provide 

structured and guided training or 

internship programs. Thus, site visits 

will be required for host organizations 

that have not previously participated 

successfully in the sponsor’s training 

and internship programs if such 

organizations have fewer than 25 

employees or less than three million 

dollars in annual revenue. The 

Department has determined that these 

requirements are a reasonable 

methodology to ensure that foreign 

nationals participating in these 

programs are being placed with 

employers capable of providing the 

training or internship experience that 

has been offered to the trainee or intern 

participant and documented on the 

required Training/Internship Placement 

Plan (Form DS–7002). This approach 

further helps to ensure that any training 

provider is properly motivated to 

participate in an experiential learning 

public diplomacy based activity and is 

not motivated by the desire for a 

temporary worker to meet transient 

labor needs. In addition, this 

requirement directly addresses GAO 

concerns. The Department makes no 

change to this rule. 

Six comments were received relating 

to activities that are excluded from the 

training and internship programs as set 

forth at § 62.22(j)(1). These comments 

requested clarification of the meaning of 

‘‘social work’’ and ‘‘medical social work’’ 

and whether both activities are 

excluded from training and internship 

programs. In addition, two comments 

proposed allowing supervised clinical 

activities. With the exception of the 

Alien Physician category, and as a 

matter of policy and long-standing 

practice, the Department finds that 

clinical-based activities fall outside the 

purview of the Exchange Visitor 

Program. Given this policy, the rule 

prohibits training or internship 

programs that involve ‘‘clinical’’ 

activities, i.e. those activities by 

definition or actual practice that involve 

or require direct patient contact. Thus, 

occupational fields as classified by the 

Department of Education’s 

Classification of Instructional Programs 

(CIP) codes that fall under Public 

Administration and Social Service 

Professions (i.e., youth services) will be 

permitted while occupational fields that 

fall under the Health Professions and 

Related Clinical Sciences classification 

of the CIP codes (i.e., clinical/medical 

social work, hairdressers, dental 

services, nursing, veterinary medicine 

and services, etc.) are prohibited and no 

changes to the current interim 

regulation are being made. 

Two (2) comments were received 

regarding the duration of internship 

program participation § 62.22(k) and 

nine (9) comments were received 

opposing the change in the program 

length of agriculture training programs 

from 18 months to 12 months. All 11 

comments requested that the program 

length of training and internship 

programs be set at 18 months duration, 

as previously allowed under the now 

defunct ‘‘non-specialty’’ category for 

training programs. Mindful of the 

expertise of the GAO, and desiring to 

address criticism raised in no less than 

three GAO reports regarding the 

potential misuse of the Exchange Visitor 

Program for work purposes, the 

Department has determined that 12 

months permits sufficient time to 

pursue a training program in the field of 

agriculture. Before entering the United 

States to participate in an agricultural 

training program, trainees must already 

have either a degree or professional 

certificate from a foreign post-secondary 

academic institution and at least one 

year of prior related work experience in 

their occupational field acquired 

outside the United States; or in the 

alternative, five years of work 

experience in their occupational field 

outside the United States. Thus, this 

level of expertise further supports the 

Department’s view that 12 months 

provides an appropriate length of 

program participation and the 

Department makes no change to the 

rule. 

Two comments were received 

opposing the provisions governing the 

eligibility of intern and trainee 

participants and their potential 

participation in additional internship 

and training programs, § 62.22(n). These 

requirements were adopted to ensure 

that the objectives of the Exchange 

Visitor Program are met (i.e., that 

participants receive training that will 

advance their chosen career fields, that 

interns complete their education and 

return to their home country with 

enhanced skills, and that the Exchange 

Visitor Program is not utilized for 

ordinary work purposes). To meet these 

policy objectives, the rule at § 62.22(n) 

is amended to clearly permit foreign 

nationals to participate in additional 

internship programs as long as the 

participant maintains full-time student 

status, (i.e., changes to a higher 

educational level, or begins a new 

internship program within 12 months of 

graduation). The Department concludes 

that this clarification augments the pool 

of potential participants and is desirable 

as a matter of policy. 

Fourteen (14) comments were 

received regarding the certifications 

required on the Training/Internship 

Placement Plan (Form DS–7002). The 

Department acknowledges concerns 

raised regarding sponsor obligations to 

screen host organizations and has added 

a field to the Form DS–7002 that will 

collect the Employer Identification 

Number (EIN). The Department has 

ascertained that each state has adopted 

differing requirements for Workers’ 

Compensation Insurance coverage. 

Accordingly, § 62.22(g) has been 

amended to require sponsors to verify 

the existence of either a Workers’ 

Compensation Insurance Policy, 

equivalent coverage, or if applicable, 

evidence of state exemption from the 

requirement of coverage. 

The regulatory language governing the 

duration of a training or internship 

program has been amended to clarify 

the inherent expectation that sponsors 

administer their programs in accordance 

with their letter of designation or most 

recent letter of redesignation. This 

language will ensure that the trainee or 

intern is fully aware of the expectations 

of their program identified in the 

outlined Training/Internship Placement 

Plan (T/IPP). Twelve-month training 

programs in the field of agriculture may 

not be extended to 18 months by adding 

six months of classroom participation 

and studies at the end of the original 

12-month program duration. The six 

months of related classroom 

participation and studies must have 

been part of the trainee’s original T/IPP. 

Finally, the Department published a 

notice in the Federal Register on July 

11, 2008, (73 FR 40008) which 

announced the termination of flight 

training from the Exchange Visitor 

Program as of June 1, 2010. The section 

which governed flight training 

regulations has been removed from the 

final rule. Current flight training 

sponsors continue to have obligations to 

their exchange visitors pursuant to 22 

CFR 62.63, and they must fulfill their 

responsibilities to all exchange visitors 

who are in the United States until the 

individual’s exchange program is 

completed. 

Administrative Procedure Act 

The Department originally published 

this rulemaking as a Proposed Rule, 

with a 60-day comment period. 71 FR 

17768 (April 7, 2006). The Department 

received almost 1,600 comments in 

response to the NPRM, and 

incorporating many of the comments 

received into an Interim Final Rule and 

again solicited public comment (72 FR 


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48558 Federal Register / Vol. 75, No. 154 / Wednesday, August 11, 2010 / Rules and Regulations 

33669 (June 19, 2007)). In response, the 

Department received and analyzed 120 

comments. Certain suggestions 

identified above are incorporated in this 

Final Rule. The Department of State is 

of the opinion that the Exchange Visitor 

Program is a foreign affairs function of 

the United States Government and that 

regulations implementing this function 

are exempt from the provisions of 5 

U.S.C. 553. This rulemaking process has 

been conducted without prejudice as to 

whether it involves a foreign affairs 

function of the United States exempt 

from the requirements of 5 U.S.C. 553 

and without prejudice as to whether the 

Department may invoke that exemption 

in other contexts. 

Unfunded Mandates Reform Act of 1995 

This rule will not result in the 

expenditure by state, local, and tribal 

governments, in the aggregate, or by the 

private sector, of $1 million or more in 

any year, and it will not significantly or 

uniquely affect small governments. 

Therefore, no actions were deemed 

necessary under the provisions of the 

Unfunded Mandates Reform Act of 

1995, 2 U.S.C. 1501–1504. 

Small Business Regulatory Enforcement 

Fairness Act of 1996 

This Final Rule has been found not to 

be a major rule within the meaning of 

the Small Business Regulatory 

Enforcement Fairness Act of 1996. See 

5 U.S.C. 804(2). This rule will not result 

in an annual effect on the economy of 

$100 million or more; a major increase 

in costs or prices for consumers, 

individual industries, federal, state, or 

local government agencies, or 

geographic regions; or significant 

adverse effects on competition, 

employment, investment, productivity, 

innovation, or on the ability of United 

States-based enterprises to compete 

with foreign-based enterprises in 

domestic and export markets. 

Executive Orders 12372 and 13132 

This rule will not have a substantial 

effect on the states, the relationship 

between the national government and 

the states, or on the distribution of 

power and responsibilities among the 

various levels of government. Therefore, 

it is determined that this Final Rule 

does not have sufficient federalism 

implications to warrant application of 

the consultation provisions of Executive 

Orders 12372 and 13132. 

Regulatory Flexibility Act 

In its promulgation of the Interim 

Final Rule at 72 FR at page 33673, the 

Department certified that the proposed 

changes to the regulations were not 

expected to have a significant economic 

impact on a substantial number of small 

entities under the criteria of the 

Regulatory Flexibility Act, 5 U.S.C. 601– 

612, and Executive Order 13272, section 

3(b). As discussed above, the 

Department is of the opinion that this 

Final Rule is exempt from the 

provisions of 5 U.S.C. 553, and no other 

law requires the Department of State to 

give notice of proposed rulemaking, and 

accordingly this proposed rule is not 

subject to the requirements of the 

Regulatory Flexibility Act. However, the 

Department has examined the potential 

impact of this final rule on small 

entities. Entities conducting student 

exchange programs are classified under 

code number 6117.10 of the North 

American Industry Classification 

System. Some 5,573 for profit and tax 

exempt entities are listed as falling 

within this classification. Of this total 

number of so-classified entities, 1,226 

are designated by the Department of 

State as sponsors of an exchange visitor 

program, designated as such to further 

the public diplomacy mission of the 

Department and U.S. Government 

through the conduct of exchange visitor 

programs. Of these 1,226 Department 

designated entities, 933 are academic 

institutions and 293 are for profit or tax 

exempt entities. Of the 293 for profit or 

tax exempt entities designated by the 

Department, 131 have annual revenues 

of less than $7 million thereby falling 

within the purview of the Regulatory 

Flexibility Act. Of these 131 entities 

with revenues of less than $7 million, 

50 are either an internship or a training 

program. Eight large, i.e. state 

universities are designated to conduct 

training and or intern based exchange 

activities. No state, local or tribal 

governments are designated training or 

intern sponsors. Although, as stated 

above, the Department is of the opinion 

that the Exchange Visitor Program is a 

foreign affairs function of the United 

States Government and, as such, that 

this final rule is exempt from the 

rulemaking provisions of § 553 of the 

Administrative Procedure Act, given the 

demonstrated lack of impact of this rule, 

discussed immediately below to the 

small entities conducting student 

exchange programs noted above, the 

Department has determined that this 

proposed rule will not have a significant 

economic impact on a substantial 

number of small entities. 

The Department notes that these 

regulations have been in place since 

June 2007 and that no entity designated 

to conduct training and intern programs 

has identified an additional cost of 

compliance, involving either money or 

manpower. The Department has been 

unable to identify any such additional 

cost as well, thus the Department 

certifies this Rule as not having a 

significant economic impact on its 

designated sponsoring organizations. 

The Department’s certification 

concerning impact on small entities is 

made without prejudice as to whether 

this rulemaking involves a foreign 

affairs function of the United States 

exempt from the Regulatory Flexibility 

Act, as the Department believes it is, 

and without prejudice as to whether the 

Department may invoke that exemption 

in any other context. 

Executive Order 12866 

The Department of State does not 

consider this rule to be a ‘‘significant 

regulatory action’’ under Executive 

Order 12866, section 3(f), Regulatory 

Planning and Review. The Department 

is of the opinion that the Exchange 

Visitor Program is a foreign affairs 

function of the United States 

Government and that rules governing 

the conduct of this function are exempt 

from the requirements of Executive 

Order 12866. However, the Department 

has nevertheless reviewed this proposed 

regulation to ensure its consistency with 

the regulatory philosophy and 

principles set forth in that Executive 

Order. 

Training and Internship exchange 

programs conducted under the 

authorities of the Fulbright-Hays Act 

promote mutual understanding by 

providing exchange visitors in their 

academic or occupational fields through 

participation in structured and guided 

work-based training and internship 

programs and to improve participants’ 

knowledge of American techniques, 

methodologies, and technology. Upon 

their return home, these students and 

participants enrich their schools and 

communities with different perspectives 

of U.S. culture and events, providing 

local communities with new and 

diverse perspectives. Training and 

internship exchanges also foster 

enduring relationships and lifelong 

friendships which help build 

longstanding ties between the people of 

the United States and other countries. 

Though the benefits of these exchanges 

to the United States and its people 

cannot be monetized, the Department is 

nonetheless of the opinion that these 

benefits outweigh the costs associated 

with this final rule. The final rule does 

not impose any additional costs, but 

does eliminate the cost associated with 

sponsor staff researching and 

identifying Dun and Bradstreet numbers 

as currently required by 22 CFR 

62.22(g)(3)(i). The Department 


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Federal Register / Vol. 75, No. 154 / Wednesday, August 11, 2010 / Rules and Regulations 48559 

calculates that the elimination of this 

requirement provides a net savings to 

sponsors of $140,000 (7,000 staff hours 

× $20 per hour). 

Executive Order 12988 

The Department has reviewed this 

Final Rule in light of Sections 3(a) and 

3(b)(2) of Executive Order 12988 to 

eliminate ambiguity, minimize 

litigation, establish clear legal 

standards, and reduce burden. 

Executive Order 13175—Consultation 

and Coordination With Indian Tribal 

Governments 

The Department has determined that 

this rulemaking will not have tribal 

implications, will not impose 

substantial direct compliance costs on 

Indian tribal governments, and will not 

pre-empt tribal law. Accordingly, the 

requirements of Section 5 of Executive 

Order 13175 do not apply to this 

rulemaking. 

Paperwork Reduction Act 

The information collection 

requirements contained in this 

rulemaking (Form DS–7002) have been 

approved by the Office of Management 

and Budget pursuant to the Paperwork 

Reduction Act, 44 U.S.C. Chapter 35, 

under OMB Control Number 1405–0170, 

expiration date: 07/31/2012. 

List of Subjects in 22 CFR Part 62 

Cultural exchange programs, 

Reporting and recordkeeping 

requirements. 

■ Accordingly, the interim final rule 

published on June 19, 2007 (72 FR 

33669), amending 22 CFR part 62 

confirmed as final with the following 

changes: 

PART 62—EXCHANGE VISITOR 

PROGRAM 

■ 1. The Authority citation for part 62 

is revised to read as follows: 

Authority: 8 U.S.C. 1101(a)(15)(J), 1182, 

1184, 1258; 22 U.S.C. 1431–1442, 2451 et 

seq.; Foreign Affairs Reform and 

Restructuring Act of 1998, Pub. L. 105–277, 

Div. G, 112 Stat. 2681 et seq.; Reorganization 

Plan No. 2 of 1977, 3 CFR, 1977 Comp. p. 

200; E.O. 12048 of March 27, 1978; 3 CFR, 

1978 Comp. p. 168; the Illegal Immigration 

Reform and Immigrant Responsibility Act 

(IIRIRA) of 1996, Pub. L. 104–208, Div. C, 110 

Stat. 3009–546, as amended; Uniting and 

Strengthening America by Providing 

Appropriate Tools Required to Intercept and 

Obstruct Terrorism Act of 2001 (USA 

PATRIOT ACT) (Pub. L. 107–56), Section 

416, 115 Stat. 354; and the Enhanced Border 

Security and Visa Entry Reform Act of 2002, 

Pub. L. 107–173; 116 Stat. 543. 

■ 2. Section 62.22 is revised to read as 

follows: 

§ 62.22 Trainees and Interns. 

(a) Introduction. These regulations 

govern Exchange Visitor Programs 

under which foreign nationals with 

significant experience in their 

occupational field have the opportunity 

to receive training in the United States 

in such field. These regulations also 

establish a new internship program 

under which foreign national students 

and recent graduates of foreign postsecondary academic institutions have 

the opportunity to receive training in 

the United States in their field of 

academic study. These regulations 

include specific requirements to ensure 

that both trainees and interns receive 

hands-on experience in their specific 

fields of study/expertise and that they 

do not merely participate in work 

programs. Regulations dealing with 

training opportunities for certain foreign 

students who are studying at postsecondary accredited educational 

institutions in the United States are 

located at § 62.23 (‘‘College and 

University Students’’). Regulations 

governing alien physicians in graduate 

medical education or training are 

located at § 62.27 (‘‘Alien Physicians’’). 

(b) Purpose. (1)(i) The primary 

objectives of the programs offered under 

these regulations are to enhance the 

skills and expertise of exchange visitors 

in their academic or occupational fields 

through participation in structured and 

guided work-based training and 

internship programs and to improve 

participants’ knowledge of American 

techniques, methodologies, and 

technology. Such training and 

internship programs are also intended to 

increase participants’ understanding of 

American culture and society and to 

enhance Americans’ knowledge of 

foreign cultures and skills through an 

open interchange of ideas between 

participants and their American 

associates. A key goal of the FulbrightHays Act, which authorizes these 

programs, is that participants will return 

to their home countries and share their 

experiences with their countrymen. 

(ii) Exchange Visitor Program training 

and internship programs must not be 

used as substitutes for ordinary 

employment or work purposes; nor may 

they be used under any circumstances 

to displace American workers. The 

requirements in these regulations for 

trainees are designed to distinguish 

between bona fide training, which is 

permitted, and merely gaining 

additional work experience, which is 

not permitted. The requirements in 

these regulations for interns are 

designed to distinguish between a 

period of work-based learning in the 

intern’s academic field, which is 

permitted (and which requires a 

substantial academic framework in the 

participant’s field), and unskilled labor, 

which is not. 

(2) In addition, a specific objective of 

the new internship program is to 

provide foreign nationals who are 

currently enrolled full-time and 

pursuing studies at a degree- or 

certificate-granting post-secondary 

academic institution or graduated from 

such an institution no more than 12 

months prior to their exchange visitor 

program begin date a period of workbased learning to allow them to develop 

practical skills that will enhance their 

future careers. Bridging the gap between 

formal education and practical work 

experience and gaining substantive 

cross-cultural experience are major 

goals in educational institutions around 

the world. By providing training 

opportunities for current foreign 

students and recent foreign graduates at 

formative stages of their development, 

the U.S. Government will build 

partnerships, promote mutual 

understanding, and develop networks 

for relationships that will last through 

generations as these foreign nationals 

move into leadership roles in a broad 

range of occupational fields in their own 

societies. These results are closely tied 

to the goals, themes, and spirit of the 

Fulbright-Hays Act. 

(c) Designation. (1) The Department 

may, in its sole discretion, designate as 

sponsors those entities it deems to meet 

the eligibility requirements set forth in 

Subpart A of 22 CFR part 62 and to have 

the organizational capacity successfully 

to administer and facilitate training and 

internship programs. 

(2) Sponsors must provide training 

and internship programs only in the 

occupational category or categories for 

which the Department has designated 

them as sponsors. The Department may 

designate training and internship 

programs in any of the following 

occupational categories: 

(i) Agriculture, Forestry, and Fishing; 

(ii) Arts and Culture; 

(iii) Construction and Building 

Trades; 

(iv) Education, Social Sciences, 

Library Science, Counseling and Social 

Services; 

(v) Health Related Occupations; 

(vi) Hospitality and Tourism; 

(vii) Information Media and 

Communications; 

(viii) Management, Business, 

Commerce and Finance; 

(ix) Public Administration and Law; 

and 


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(x) The Sciences, Engineering, 

Architecture, Mathematics, and 

Industrial Occupations. 

(d) Selection criteria. (1) In addition to 

satisfying the general requirements set 

forth in § 62.10(a), sponsors must ensure 

that trainees and interns have verifiable 

English language skills sufficient to 

function on a day-to-day basis in their 

training environment. Sponsors must 

verify an applicant’s English language 

proficiency through a recognized 

English language test, by signed 

documentation from an academic 

institution or English language school, 

or through a documented interview 

conducted by the sponsor either inperson or by videoconferencing, or by 

telephone if videoconferencing is not a 

viable option. 

(2) Sponsors of training programs 

must verify that all potential trainees are 

foreign nationals who have either a 

degree or professional certificate from a 

foreign post-secondary academic 

institution and at least one year of prior 

related work experience in their 

occupational field acquired outside the 

United States or five years of work 

experience in their occupational field 

acquired outside the United States. 

(3) Sponsors of internship programs 

must verify that all potential interns are 

foreign nationals who are currently 

enrolled full-time and pursuing studies 

in their advanced chosen career field at 

a degree- or certificate-granting postsecondary academic institution outside 

the United States or graduated from 

such an institution no more than 12 

months prior to their exchange visitor 

program begin date. 

(e) Issuance of Forms DS–2019. In 

addition to the requirements set forth in 

Subpart A, sponsors must ensure that: 

(1) They do not issue Forms DS–2019 

to potential participants in training and 

internship programs until they secure 

placements for trainees or interns and 

complete and secure requisite signatures 

on Form DS–7002, Training/Internship 

Placement Plan (T/IPP); 

(2) Trainees and interns have 

sufficient finances to support 

themselves for their entire stay in the 

United States, including housing and 

living expenses; and 

(3) The training and internship 

programs expose participants to 

American techniques, methodologies, 

and technology and expand upon the 

participants’ existing knowledge and 

skills. Programs must not duplicate the 

participants’ prior work experience or 

training received elsewhere. 

(f) Obligations of training and 

internship program sponsors. (1) 

Sponsors designated by the Department 

to administer training and internship 

programs must: 

(i) Ensure that trainees and interns are 

appropriately selected, placed, oriented, 

supervised, and evaluated; 

(ii) Be available to trainees and 

interns (and host organizations, as 

appropriate) to assist as facilitators, 

counselors, and information resources; 

(iii) Ensure that training and 

internship programs provide a balance 

between the trainees’ and interns’ 

learning opportunities and their 

contributions to the organizations in 

which they are placed; 

(iv) Ensure that the training and 

internship programs are full-time 

(minimum of 32 hours a week); and 

(v) Ensure that any host organizations 

and third parties involved in the 

recruitment, selection, screening, 

placement, orientation, evaluation for, 

or the provision of training and 

internship programs are sufficiently 

educated on the goals, objectives, and 

regulations of the Exchange Visitor 

Program and adhere to all regulations 

set forth in this Part as well as all 

additional terms and conditions 

governing Exchange Visitor Program 

administration that the Department may 

from time to time impose. 

(2) Sponsors must certify that they or 

any host organization acting on the 

sponsor’s behalf: 

(i) Have sufficient resources, plant, 

equipment, and trained personnel 

available to provide the specified 

training and internship program; 

(ii) Provide continuous on-site 

supervision and mentoring of trainees 

and interns by experienced and 

knowledgeable staff; 

(iii) Ensure that trainees and interns 

obtain skills, knowledge, and 

competencies through structured and 

guided activities such as classroom 

training, seminars, rotation through 

several departments, on-the-job training, 

attendance at conferences, and similar 

learning activities, as appropriate in 

specific circumstances; 

(iv) Conduct periodic evaluations of 

trainees and interns, as set forth in 

§ 62.22(l); 

(v) Do not displace full- or part-time 

or temporary or permanent American 

workers or serve to fill a labor need and 

ensure that the positions that trainees 

and interns fill exist primarily to assist 

trainees and interns in achieving the 

objectives of their participation in 

training and internship programs; and 

(vi) Certify that training and 

internship programs in the field of 

agriculture meet all the requirements of 

the Fair Labor Standards Act, as 

amended (29 U.S.C. 201 et seq.) and the 

Migrant and Seasonal Agricultural 

Worker Protection Act, as amended (29 

U.S.C. 1801 et seq.). 

(3) Sponsors or any third parties 

acting on their behalf must complete 

thorough screening of potential trainees 

or interns, including a documented 

interview conducted by the sponsor 

either in-person or by 

videoconferencing, or by telephone if 

videoconferencing is not a viable 

option. 

(4) Sponsors must retain all 

documents referred to in § 62.22(f) for at 

least three years following the 

completion of all training and 

internship programs. Documents and 

any requisite signatures may be retained 

in either hard copy or electronic format. 

(g) Use of third parties. (1) Sponsors 

use of third parties. Sponsors may 

engage third parties (including, but not 

limited to host organizations, partners, 

local businesses, governmental entities, 

academic institutions, and other foreign 

or domestic agents) to assist them in the 

conduct of their designated training and 

internship programs. Such third parties 

must have an executed written 

agreement with the sponsor to act on 

behalf of the sponsor in the conduct of 

the sponsor’s program. This agreement 

must outline the obligations and full 

relationship between the sponsor and 

third party on all matters involving the 

administration of their exchange visitor 

program. A sponsor’s use of a third 

party does not relieve the sponsor of its 

obligations to comply with and to 

ensure third party compliance with 

Exchange Visitor Program regulations. 

Any failure by any third party to comply 

with the regulations set forth in this Part 

or with any additional terms and 

conditions governing Exchange Visitor 

Program administration that the 

Department may from time to time 

impose will be imputed to the sponsors 

engaging such third party. 

(2) Screening and vetting third parties 

operating outside the United States. 

Sponsors must ascertain that third 

parties operating outside the United 

States are legitimate entities within the 

context of their home country 

environment. For third parties that 

operate as businesses, sponsors must 

obtain relevant home country 

documentation, such as a business 

registration or certification. Such home 

country documentation must include an 

English Language translation for any 

business registration or certification 

documents submitted in a foreign 

language. Written agreements between 

sponsors and third parties operating 

outside the United States must include 

annually updated price lists for training 

and internship programs offered by each 

third party, and must indicate that such 


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Federal Register / Vol. 75, No. 154 / Wednesday, August 11, 2010 / Rules and Regulations 48561 

overseas third parties are sufficiently 

trained in all aspects of the programs 

they represent, including the regulations 

set forth in this Part. 

(3) Screening and vetting host 

organizations. Sponsors must 

adequately screen all potential host 

organizations at which a trainee or 

intern will be placed by obtaining the 

following information: 

(i) Employer Identification Number 

(EIN) used for tax purposes; 

(ii) Third party verification of 

telephone number, address, and 

professional activities, e.g., via 

advertising, brochures, Web site, and/or 

feedback from prior participants; and 

(iii) Verification of Worker’s 

Compensation Insurance Policy or 

equivalent in each state or, if applicable, 

evidence of state exemption from 

requirement of coverage. 

(4) Site visits of host organizations. 

Sponsors must conduct site visits of 

host organizations that have not 

previously participated successfully in 

the sponsor’s training and internship 

programs and that have fewer than 25 

employees or less than three million 

dollars in annual revenue. Placements at 

academic institutions or at federal, state, 

or local government offices are 

specifically excluded from this 

requirement. The purpose of the site 

visits is for the sponsors to ensure that 

host organizations possess and maintain 

the ability and resources to provide 

structured and guided work-based 

learning experiences according to 

individualized T/IPPs and that host 

organizations understand and meet their 

obligations set forth in this Part. 

(h) Host organization obligations. 

Sponsors must ensure that: 

(1) Host organizations sign a 

completed Form DS–7002 to verify that 

all placements are appropriate and 

consistent with the objectives of the 

trainees or interns as outlined in their 

program applications and as set forth in 

their T/IPPs. All parties involved in 

internship programs should recognize 

that interns are seeking entry-level 

training and experience. Accordingly, 

all placements must be tailored to the 

skills and experience level of the 

individual intern; 

(2) Host organizations notify sponsors 

promptly of any concerns about, 

changes in, or deviations from T/IPPs 

during training and internship programs 

and contact sponsors immediately in the 

event of any emergency involving 

trainees or interns; 

(3) Host organizations abide by all 

federal, state, and local occupational 

health and safety laws; and 

(4) Host organizations abide by all 

program rules and regulations set forth 

by the sponsors, including the 

completion of all mandatory program 

evaluations. 

(i) Training/internship placement 

plan (Form DS–7002). (1) Sponsors must 

fully complete and obtain all requisite 

signatures on a Form DS–7002 for each 

trainee or intern before issuing a Form 

DS–2019. Sponsors must provide each 

signatory an executed copy of the Form 

DS–7002. Upon request, trainees and 

interns must present their fully 

executed Form DS–7002 to Consular 

Officials during their visa interview. 

(2) To further distinguish between 

bona fide training for trainees or workbased learning for interns, which are 

permitted, and unskilled or casual labor 

positions which are not, all T/IPPs 

must: 

(i) State the specific goals and 

objectives of the training and internship 

program (for each phase or component, 

if applicable); 

(ii) Detail the knowledge, skills, or 

techniques to be imparted to the trainee 

or intern (for each phase or component, 

if applicable); and 

(iii) Describe the methods of 

performance evaluation and the 

supervision for each phase or 

component, if applicable. 

(3) A T/IPP for trainees must be 

divided into specific and various phases 

or components, and for each phase or 

component must: 

(i) Describe the methodology of 

training and 

(ii) Provide a chronology or syllabus. 

(4) A T/IPP for interns must: 

(i) Describe the role of the intern in 

the organization and, if applicable, 

identify various departments or 

functional areas in which the intern will 

work; and 

(ii) Identify the specific tasks and 

activities the intern will complete. 

(j) Program exclusions. Sponsors 

designated by the Department to 

administer training and internship 

programs must not: 

(1) Place trainees or interns in 

unskilled or casual labor positions, in 

positions that require or involve child 

care or elder care; or in clinical or any 

other kind of work that involves patient 

care or patient contact, including any 

work that would require trainees or 

interns to provide therapy, medication, 

or other clinical or medical care (e.g., 

sports or physical therapy, 

psychological counseling, nursing, 

dentistry, veterinary medicine, social 

work, speech therapy, early childhood 

education); 

(2) Place trainees or interns in 

positions, occupations, or businesses 

that could bring the Exchange Visitor 

Program or the Department into 

notoriety or disrepute; or 

(3) Engage or otherwise cooperate or 

contract with a Staffing/Employment 

Agency to recruit, screen, orient, place, 

evaluate, or train trainees or interns, or 

in any other way involve such agencies 

in an Exchange Visitor Program training 

and internship program. 

(4) Issue a T/IPP for any trainee or 

intern for which the duties involve more 

than 20 per cent clerical work. 

(5) Have less than three departmental 

or functional rotations for ‘‘Hospitality 

and Tourism’’ training and internship 

programs of six months or longer. 

(k) Duration. The duration of 

participation in a training and 

internship program must be established 

before a sponsor issues a Form DS–2019 

and must not exceed the sponsor’s 

authorized designation as set forth in 

the sponsor’s letter of designation or 

most recent letter of redesignation. 

Except as noted below, the maximum 

duration of a training program is 18 

months, and the maximum duration of 

an internship program is 12 months. For 

training programs in the field of 

agriculture and in the occupational 

category of Hospitality and Tourism, the 

maximum duration of program 

participation is 12 months. If an original 

T/IPP specifies that at least six months 

of a program includes related classroom 

participation and studies, training 

programs in the field of agriculture may 

be designated for a total duration of 18 

months. Program extensions are 

permitted within the maximum 

duration as set forth in the letter of 

designation/redesignation provided that 

the need for an extended training or 

internship program is documented by 

the full completion and execution of a 

new Form DS–7002. 12-month training 

programs in the field of agriculture may 

not be extended to 18 months by adding 

six months of classroom participation 

and studies at the end of the original 12- 

month program duration. Per above, the 

six months of related classroom 

participation and studies must have 

been part of the trainee’s original T/IPP. 

(l) Evaluations. In order to ensure the 

quality of training and internship 

programs, sponsors must develop 

procedures for evaluating all trainees 

and interns. All required evaluations 

must be completed prior to the 

conclusion of a training and internship 

program, and both the trainees and 

interns and their immediate supervisors 

must sign the evaluation forms. For 

programs exceeding six months’ 

duration, at a minimum, midpoint and 

concluding evaluations are required. For 

programs of six months or less, at a 

minimum, concluding evaluations are 


srobinson on DSKHWCL6B1PROD with RULES
48562 Federal Register / Vol. 75, No. 154 / Wednesday, August 11, 2010 / Rules and Regulations 

required. Sponsors must retain trainee 

and intern evaluations (electronic or 

hard copy) for a period of at least three 

years following the completion of each 

training and internship program. 

(m) Issuance of certificate of eligibility 

for exchange visitor (J–1) status. 

Sponsors must not deliver or cause to be 

delivered any Certificate of Eligibility 

for Exchange Visitor (J–1) Status (Form 

DS–2019) to potential trainees or interns 

unless the individualized Form DS– 

7002 required by § 62.22(i) has been 

completed and signed by all requisite 

parties. 

(n) Additional training and internship 

program participation. Foreign 

nationals who enter the United States 

under the Exchange Visitor Program to 

participate in training and internship 

programs are eligible to participate in 

additional training and internship 

programs under certain conditions. For 

both trainees and interns, additional 

training and internship programs must 

address the development of more 

advanced skills or a different field of 

expertise. Interns may apply for 

additional internship programs if they: 

(1) Are currently enrolled full-time 

and pursuing studies at degree- or 

certificate-granting post-secondary 

academic institutions outside the 

United States; or, 

(2) Have graduated from such 

institutions no more than 12 months 

prior to the start of their proposed 

exchange visitor program. A new 

internship is also permissible when a 

student has successfully completed a 

recognized course of study (i.e., 

associate, bachelors, masters, Ph.D., or 

their recognized equivalents) and has 

enrolled and is pursuing studies at the 

next higher level of academic study. 

Trainees are eligible for additional 

training programs after a period of at 

least two years residency outside the 

United States following completion of 

their training program. Participants who 

have successfully completed internship 

programs and no longer meet the 

selection criteria for an internship 

program may participate in a training 

program if they have resided outside the 

United States or its territories for at least 

two years. If participants meet these 

selection criteria and fulfill these 

conditions, there will be no limit to the 

number of times they may participate in 

a training and internship program. 

Dated: August 5, 2010. 

Stanley S. Colvin, 

Deputy Assistant Secretary for Private Sector 

Exchange, Bureau of Educational and 

Cultural Affairs, Department of State. 

[FR Doc. 2010–19727 Filed 8–10–10; 8:45 am] 

BILLING CODE 4710–05–P 

DEPARTMENT OF THE TREASURY 

Office of Foreign Assets Control 

31 CFR Part 560 

Iranian Transactions Regulations 

AGENCY: Office of Foreign Assets 

Control, Treasury. 

ACTION: Notice. 

SUMMARY: The Department of the 

Treasury’s Office of Foreign Assets 

Control (‘‘OFAC’’) is publishing the 

names of 21 persons it has determined 

to be the Government of Iran, as that 

term is defined in the Iranian 

Transactions Regulations. The names of 

these persons will be added, at a future 

date, to Appendix A to Part 560 in the 

Code of Federal Regulations. 

DATES: The determination by the 

Director of OFAC with respect to these 

21 persons is effective on August 3, 

2010. 

FOR FURTHER INFORMATION CONTACT: 

Assistant Director for Compliance, 

Outreach & Implementation, Office of 

Foreign Assets Control, Department of 

the Treasury, Washington, DC 20220, 

tel.: 202/622–2490. 

SUPPLEMENTARY INFORMATION: 

Electronic and Facsimile Availability 

This document and additional 

information concerning OFAC are 

available from OFAC’s Web site 

(http://www.treas.gov/ofac). Certain 

general information pertaining to 

OFAC’s sanctions programs also is 

available via facsimile through a 24- 

hour fax-on-demand service, tel.: 202/ 

622–0077. 

Background 

The Iranian Transactions Regulations, 

31 CFR part 560 (the ‘‘ITR’’), implement 

a series of Executive orders that began 

with Executive Order 12613, which was 

issued on October 29, 1987, pursuant to 

authorities including the International 

Security and Development Cooperation 

Act of 1985 (22 U.S.C. 2349aa–9). In that 

Order, after finding, inter alia, that the 

Government of Iran was actively 

supporting terrorism as an instrument of 

state policy, the President prohibited 

the importation of Iranian-origin goods 

and services. Subsequently, in 

Executive Order 12957, issued on March 

15, 1995, under the authority of, inter 

alia, the International Emergency 

Economic Powers Act (50 U.S.C. 1701– 

1706) (‘‘IEEPA’’), the President declared 

a national emergency with respect to the 

actions and policies of the Government 

of Iran, including its support for 

international terrorism, its efforts to 

undermine the Middle East peace 

process, and its efforts to acquire 

weapons of mass destruction and the 

means to deliver them. To deal with that 

threat, Executive Order 12957 imposed 

prohibitions on certain transactions 

with respect to the development of 

Iranian petroleum resources. On May 6, 

1995, to further respond to this threat, 

the President issued Executive Order 

12959, which imposed comprehensive 

trade and financial sanctions on Iran. 

Finally, on August 19, 1997, the 

President issued Executive Order 13059 

consolidating and clarifying the 

previous orders. 

The ITR implement these Executive 

orders and prohibit various transactions, 

including, among others, transactions 

with the Government of Iran, a term 

defined in section 560.304. That 

definition includes: 

(a) The state and the Government of 

Iran, as well as any political 

subdivision, agency, or instrumentality 

thereof; 

(b) Any entity owned or controlled 

directly or indirectly by the foregoing; 

and 

(c) Any person to the extent that such 

person is, or has been, or to the extent 

that there is reasonable cause to believe 

that such person is, or has been, * * * 

acting or purporting to act directly or 

indirectly on behalf of any of the 

foregoing * * *. 

The phrase entity owned or controlled 

by the Government of Iran is itself 

defined in section 560.313 of the ITR. 

OFAC today is publishing the names of 

21 persons it has determined to be the 

Government of Iran. The names of these 

persons will be added to Appendix A to 

Part 560 at a later date. 

It is important to note that Appendix 

A to Part 560 is not a comprehensive list 

of persons falling within the definition 

of Government of Iran. Even if a person 

is not listed in Appendix A to Part 560 

or has not otherwise been specifically 

determined by OFAC to be the 

Government of Iran, if the person 

satisfies the definition of the term 

Government of Iran in the ITR, U.S. 

persons and others engaging in 

transactions subject to the ITR are 

prohibited from engaging in transactions 

with that person, regardless of its 

location, to the same extent they are 

prohibited from engaging in transactions 

with the persons listed in Appendix A 

to Part 560 or that have otherwise been 

specifically determined by OFAC to be 

the Government of Iran. U.S. persons 

and others engaging in transactions 

subject to the ITR also are prohibited 

from engaging in most transactions with 

any person located in Iran, even if that 

person does not come within the 


srobinson on DSKHWCL6B1PROD with RULES