[Federal Register Volume 81, Number 17 (Wednesday, January 27, 2016)]
[Rules and Regulations]
[Pages 4583-4586]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-01559]
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DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 515
Cuban Assets Control Regulations
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Final rule.
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SUMMARY: The Department of the Treasury's Office of Foreign Assets
Control (OFAC) is amending the Cuban Assets Control Regulations to
further implement elements of the policy announced by the President on
December 17, 2014 to engage and empower the Cuban people. These
amendments remove certain payment and financing restrictions for
authorized exports and reexports to Cuba of items other than
agricultural items or commodities and further facilitate travel to Cuba
for authorized purposes by allowing blocked space, code-sharing, and
leasing arrangements with Cuban airlines and authorizing additional
travel-related and other transactions directly incident to the
temporary sojourn of aircraft and vessels. These amendments also
authorize additional transactions related to professional meetings and
other events, disaster preparedness and response projects, and
information and informational materials, including transactions
incident to professional media or artistic productions in Cuba.
DATES: Effective: January 27, 2016.
FOR FURTHER INFORMATION CONTACT: The Department of the Treasury's
Office of Foreign Assets Control: Assistant Director for Licensing,
tel.: 202-622-2480, Assistant Director for Regulatory Affairs, tel.:
202-622-4855, Assistant Director for Sanctions Compliance & Evaluation,
tel.: 202-622-2490; or the Department of the Treasury's Office of the
Chief Counsel (Foreign Assets Control), Office of the General Counsel,
tel.: 202-622-2410.
SUPPLEMENTARY INFORMATION:
Electronic and Facsimile Availability
This document and additional information concerning OFAC are
available from OFAC's Web site (www.treasury.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 Department of the Treasury issued the Cuban Assets Control
Regulations, 31 CFR part 515 (the ``Regulations''), on July 8, 1963,
under the Trading With the Enemy Act (50 U.S.C. App. 5 et seq.). OFAC
has amended the Regulations on numerous occasions.
Most recently, on January 16 and September 21, 2015, OFAC amended
the Regulations, in coordinated actions with the Department of
Commerce, to implement certain policy measures announced by the
President on December 17, 2014 to further engage and empower the Cuban
people. Today, OFAC and the Department of Commerce are taking
additional coordinated actions in support of the President's Cuba
policy.
The Department of Commerce is amending the exceptions to the
general policy of denial in the Export Administration Regulations (EAR)
for exports and reexports to Cuba by identifying additional types of
exports and reexports that are subject to a general policy of approval,
including items for safety of civil aviation and safe operation of
commercial aircraft engaged in international air transportation.
Commerce is also amending the exception to the general policy of denial
in the EAR for exports and reexports to Cuba by identifying types of
exports and reexports that will be reviewed to determine, on a case-by-
case basis, whether such transactions meet the needs of the Cuban
People.
OFAC is making additional amendments to the Regulations with
respect to non-agricultural export trade financing and travel and
related services, as set forth below.
Non-Agricultural Export Trade Financing
OFAC is amending section 515.533(a) to remove the former
limitations on payment and financing terms for all exports from the
United States or reexports of 100 percent U.S.-origin items from a
third country that are licensed or otherwise authorized by the
Department of Commerce, other than exports of agricultural items or
commodities. As required by the Trade
[[Page 4584]]
Sanctions Reform and Export Enhancement Act of 2000, 22 U.S.C.
7207(b)(1), such agricultural exports continue to be authorized only if
one of the payment and financing terms specified in the statute are
used. OFAC also is amending section 515.584 to add an authorization for
depository institutions to provide financing for such authorized
exports and making a conforming change to section 515.421.
Travel and Related Services
Carrier services by air. In parallel with the Department of
Commerce's amendments relating to the safety of civil aviation, OFAC is
amending section 515.572 to authorize the entry into blocked space,
code-sharing, and leasing arrangements to facilitate the provision of
carrier services by air authorized pursuant to section 515.572(a)(2),
including the entry into such arrangements with a national of Cuba.
Temporary sojourn. OFAC is amending section 515.533 to authorize
travel-related and other transactions directly incident to the
facilitation of the temporary sojourn of aircraft and vessels as
authorized by the Department of Commerce for travel between the United
States and Cuba, including by certain personnel required for normal
operation and service on board a vessel or aircraft or to provide
services to a vessel in port or aircraft on the ground.
Transactions related to information and informational materials.
OFAC is amending section 515.545 to expand the general license
authorizing travel-related and other transactions that are directly
incident to the export, import, or transmission of informational
materials to include professional media or artistic productions in
Cuba. Such productions include media programs (such as movies and
television programs), music recordings, and the creation of artworks.
OFAC is removing a restriction in an existing general license and
explicitly authorizing transactions relating to the creation,
dissemination, or artistic or other substantive alteration or
enhancement of informational materials, including employment of Cuban
nationals and the remittance of royalties or other payments. OFAC also
is making a conforming change to section 515.206.
Professional meetings. OFAC is amending section 515.564 to
authorize travel-related and other transactions to organize
professional meetings or conferences in Cuba.
Public performances, clinics, workshops, athletic and other
competitions, and exhibitions. OFAC is amending section 515.567 to
authorize travel-related and other transactions to organize amateur and
semi-professional international sports federation competitions and
public performances, clinics, workshops, other athletic or non-athletic
competitions, and exhibitions in Cuba. OFAC is also removing the
existing requirements for certain events that all U.S. profits from the
event after costs be donated to an independent nongovernmental
organization in Cuba or a U.S.-based charity and that workshops and
clinics be organized and run, at least in part, by the authorized
traveler.
Humanitarian projects. OFAC is amending section 515.575 to expand
the list of authorized humanitarian projects to include disaster
preparedness and response.
Public Participation
Because the amendments of the Regulations involve a foreign affairs
function, Executive Order 12866 and the provisions of the
Administrative Procedure Act (5 U.S.C. 553) requiring notice of
proposed rulemaking, opportunity for public participation, and delay in
effective date are inapplicable. Because no notice of proposed
rulemaking is required for this rule, the Regulatory Flexibility Act (5
U.S.C. 601-612) does not apply.
Paperwork Reduction Act
The collections of information related to the Regulations are
contained in 31 CFR part 501 (the ``Reporting, Procedures and Penalties
Regulations'') and section 515.572 of this part. Pursuant to the
Paperwork Reduction Act of 1995 (44 U.S.C. 3507), those collections of
information are covered by the Office of Management and Budget under
control numbers 1505-0164, 1505-0167, and 1505-0168. An agency may not
conduct or sponsor, and a person is not required to respond to, a
collection of information unless the collection of information displays
a valid control number.
List of Subjects in 31 CFR Part 515
Administrative practice and procedure, Banking, Carrier services,
Cuba, Financial transactions, Reporting and recordkeeping requirements,
Travel restrictions.
For the reasons set forth in the preamble, the Department of the
Treasury's Office of Foreign Assets Control amends 31 CFR part 515 as
set forth below:
PART 515--CUBAN ASSETS CONTROL REGULATIONS
0
1. The authority citation for part 515 continues to read as follows:
Authority: 22 U.S.C. 2370(a), 6001-6010, 7201-7211; 31 U.S.C.
321(b); 50 U.S.C. App 1-44; Pub. L. 101-410, 104 Stat. 890 (28
U.S.C. 2461 note); Pub. L. 104-114, 110 Stat. 785 (22 U.S.C. 6021-
6091); Pub. L. 105-277, 112 Stat. 2681; Pub. L. 111-8, 123 Stat.
524; Pub. L. 111-117, 123 Stat. 3034; E.O. 9193, 7 FR 5205, 3 CFR,
1938-1943 Comp., p. 1174; E.O. 9989, 13 FR 4891, 3 CFR, 1943-1948
Comp., p. 748; Proc. 3447, 27 FR 1085, 3 CFR, 1959-1963 Comp., p.
157; E.O. 12854, 58 FR 36587, 3 CFR, 1993 Comp., p. 614.
Subpart B--Prohibitions
0
2. Amend Sec. 515.206 by removing Examples #1-4 and adding a Note to
paragraph (a) to read as follows:
Sec. 515.206 Exempt transactions.
* * * * *
Note to paragraph (a): See Sec. 515.545 for general licenses
authorizing certain travel-related and other transactions that are
directly incident to the export, import, or transmission of
informational materials and certain transactions related to the
creation, dissemination, or artistic or other substantive alteration
or enhancement of informational materials.
* * * * *
Subpart D--Interpretations
0
3. Amend Sec. 515.421 by revising paragraph (a)(4) to read as follows:
Sec. 515.421 Transactions ordinarily incident to a licensed
transaction.
(a) * * *
(4) In the case of export or reexport-related transactions
authorized by Sec. 515.533(a), payment or financing that is not
authorized by Sec. 515.533 or Sec. 515.584(f).
* * * * *
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
4. Amend Sec. 515.533 by revising the introductory text to paragraph
(a)(2), redesignating the note to paragraph (a) as Note 1 to paragraph
(a), adding Note 2 to paragraph (a), and revising paragraph (d) to read
as follows:
Sec. 515.533 Exportations from the United States to Cuba;
reexportations of 100% U.S.-origin items to Cuba; negotiation of
executory contracts.
(a) * * *
(2) In the case of agricultural commodities, as that term is
defined in 15 CFR part 772, or agricultural items authorized for export
or reexport
[[Page 4585]]
pursuant to 15 CFR 746.2(b)(2)(iv), only the following payment and
financing terms may be used:
* * * * *
Note 2 to paragraph (a): The limitation in paragraph (a)(2)
applies only to payment and financing terms for exports or reexports
of agricultural items or commodities and is required by the Trade
Sanctions Reform and Export Enhancement Act of 2000, 22 U.S.C.
7207(b)(1). For other authorized exports and reexports, paragraph
(a) does not restrict payment and financing terms. See Sec. 515.584
for an authorization for depository institutions to provide
financing for authorized exports and reexports of items other than
agricultural items or commodities.
* * * * *
(d) General license for travel-related transactions incident to
exportation or reexportation of certain items. (1) The travel-related
transactions set forth in Sec. 515.560(c) and such additional
transactions as are directly incident to the conduct of market
research, commercial marketing, sales or contract negotiation,
accompanied delivery, installation, leasing, or servicing in Cuba of
items consistent with the export or reexport licensing policy of the
Department of Commerce are authorized, provided that the traveler's
schedule of activities does not include free time or recreation in
excess of that consistent with a full-time schedule.
(2) The travel-related transactions set forth in Sec. 515.560(c)
and such additional transactions as are directly incident to the
facilitation of the temporary sojourn of aircraft and vessels as
authorized by 15 CFR 740.15 (License Exception Aircraft, Vessels and
Spacecraft) or pursuant to other authorization by the Department of
Commerce for travel between the United States and Cuba authorized
pursuant to this part, including travel-related transactions by
personnel who are persons subject to U.S. jurisdiction and who are
required for normal operation and service on board a vessel or
aircraft, as well as personnel who are persons subject to U.S.
jurisdiction and who are required to provide services to a vessel in
port or aircraft on the ground, provided that:
(i) The aircraft or vessel must be transporting individuals whose
travel between the United States and Cuba is authorized pursuant to any
section of this part other than paragraph (d)(2) of this section; and
(ii) Such travel-related transactions by such personnel are limited
to the duration and scope of their duties in relation to the particular
authorized temporary sojourn.
* * * * *
0
5. Amend Sec. 515.545 by revising paragraphs (a) and (b),
redesignating the Note to Sec. 515.545 as Note 1 to Sec. 515.545, and
adding Note 2 to Sec. 515.545 to read as follows:
Sec. 515.545 Transactions related to information and informational
materials.
(a) Transactions relating to the creation, dissemination, artistic
or other substantive alteration, or enhancement of informational
materials are authorized, including employment of Cuban nationals and
remittance of royalties or other payments in connection with such
transactions. This section authorizes marketing related to the
dissemination of such informational materials but does not authorize
other marketing or business consulting services.
(b) General license. (1) The travel-related transactions set forth
in Sec. 515.560(c) and such additional transactions as are directly
incident to the exportation, importation, or transmission of
information or informational materials as defined in Sec. 515.332 are
authorized, provided that the traveler's schedule of activities does
not include free time or recreation in excess of that consistent with a
full-time schedule.
(2) The travel-related transactions set forth in Sec. 515.560(c)
and such additional transactions as are directly incident to
professional media or artistic productions of information or
informational materials for exportation, importation, or transmission,
including the filming or production of media programs (such as movies
and television programs), the recording of music, and the creation of
artworks in Cuba, are authorized, provided that the traveler is
regularly employed in or has demonstrated professional experience in a
field relevant to such professional media or artistic productions, and
that the traveler's schedule of activities does not include free time
or recreation in excess of that consistent with a full-time schedule.
* * * * *
Note 2 to Sec. 515.545: See Sec. 515.332(a)(2) for
clarification as to the types of artworks that are considered to be
informational materials.
0
6. Amend Sec. 515.564 by revising the introductory text to paragraph
(a)(2), paragraph (a)(2)(ii), and paragraph (a)(2)(iv) and adding a
note to paragraph (a)(2) to read as follows:
Sec. 515.564 Professional research and professional meetings in Cuba.
(a) * * *
(2) Professional meetings. The travel-related transactions set
forth in Sec. 515.560(c) and such additional transactions as are
directly incident to travel to Cuba to attend or organize professional
meetings or conferences in Cuba are authorized, provided that:
* * * * *
(ii) For a traveler:
(A) Attending a professional meeting or conference, the purpose of
the meeting or conference directly relates to the traveler's
profession, professional background, or area of expertise, including
area of graduate-level full-time study;
(B) Organizing a professional meeting or conference on behalf of an
entity, either the traveler's profession must be related to the
organization of professional meetings or conferences or the traveler
must be an employee or contractor of an entity that is organizing the
professional meeting or conference.
* * * * *
(iv) The traveler's schedule of activities does not include free
time or recreation in excess of that consistent with a full-time
schedule of attendance at, or organization of, professional meetings or
conferences.
Note to Sec. 515.564(a)(2): Transactions incident to the
organization of professional meetings or conferences include
marketing related to such meetings or conferences in Cuba.
* * * * *
0
7. Amend Sec. 515.567 by revising the introductory text to paragraph
(a), revising paragraph (b), redesignating the Note to Sec. 515.567(a)
and (b) as Note 1 to Sec. 515.567(a) and (b), and adding Note 2 to
Sec. 515.567(a) and (b) to read as follows:
Sec. 515.567 Public performances, clinics, workshops, athletic and
other competitions, and exhibitions.
(a) General license for amateur and semi-professional international
sports federation competitions. The travel-related transactions set
forth in Sec. 515.560(c) and such other transactions as are directly
incident to participation in athletic competitions in Cuba by amateur
or semi-professional athletes or athletic teams, or organization of
such competitions, are authorized, provided that:
* * * * *
(b) General license for public performances, clinics, workshops,
other athletic or non-athletic competitions, and exhibitions. The
travel-related transactions set forth in Sec. 515.560(c) and such
other transactions as are directly incident to participation in or
organization of a public performance, clinic, workshop, athletic
competition not covered by paragraph (a) of this section, non-athletic
competition, or exhibition in Cuba by participants in or
[[Page 4586]]
organizers of such activities are authorized, provided that the event
is open for attendance, and in relevant situations participation, by
the Cuban public.
Example 1 to Sec. 515.567(a) and (b): An amateur baseball team
wishes to travel to Cuba to compete against a Cuban team in a
baseball game in Cuba. The game will not be held under the auspices
of the international sports federation for baseball. The baseball
team's activities therefore would not qualify for the general
license in paragraph (a). The game will, however, be open to the
Cuban public. The baseball team's activities would qualify for the
general license in paragraph (b).
Example 2 to Sec. 515.567(a) and (b): A U.S. concert promoter
wishes to organize a musical event in Cuba that would be open to the
public and feature U.S. musical groups. The organizing of the
musical event in Cuba by the U.S. concert promoter and the
participation by U.S. musical groups in the event would qualify for
the general license in paragraph (b).
* * * * *
Note 2 to Sec. 515.567(a) and (b): Transactions incident to the
organization of amateur and semi-professional international sports
federation competitions and public performances, clinics, workshops,
other athletic or non-athletic competitions, and exhibitions include
marketing related to such events in Cuba.
* * * * *
0
8. Amend Sec. 515.572 by revising paragraph (a)(2) and the
introductory text to the Note to Sec. 515.572 to read as follows:
Sec. 515.572 Authorization to provide travel services, carrier
services, and remittance forwarding services.
(a) * * *
(2) Authorization to provide carrier services. (i) Persons subject
to U.S. jurisdiction are authorized to provide carrier services to,
from, or within Cuba in connection with travel or transportation,
directly or indirectly, between the United States and Cuba of persons,
baggage, or cargo authorized pursuant to this part.
(ii) The entry into blocked space, code-sharing, or leasing
arrangements to facilitate the provision of carrier services by air
authorized pursuant to section 515.572(a)(2) is authorized, including
the entry into such arrangements with a national of Cuba.
* * * * *
Note to Sec. 515.572: The following persons may be transported,
directly or indirectly, between the United States and Cuba by a
person authorized to provide carrier services:
* * * * *
0
9. Amend Sec. 515.575 by revising paragraph (b) to read as follows:
Sec. 515.575 Humanitarian projects.
* * * * *
(b) Authorized humanitarian projects. The following projects are
authorized by paragraph (a) of this section: Medical and health-related
projects; construction projects intended to benefit legitimately
independent civil society groups; disaster preparedness, relief, and
response; historical preservation; environmental projects; projects
involving formal or non-formal educational training, within Cuba or
off-island, on the following topics: Entrepreneurship and business,
civil education, journalism, advocacy and organizing, adult literacy,
or vocational skills; community-based grassroots projects; projects
suitable to the development of small-scale private enterprise; projects
that are related to agricultural and rural development that promote
independent activity; microfinancing projects, except for loans,
extensions of credit, or other financing prohibited by Sec. 515.208;
and projects to meet basic human needs.
* * * * *
0
10. Amend Sec. 515.584 by adding paragraph (f) to read as follows:
Sec. 515.584 Certain financial transactions involving Cuba.
* * * * *
(f) Depository institutions, as defined in Sec. 515.333, are
authorized to provide financing for exports or reexports of items,
other than agricultural items or commodities, authorized pursuant to
Sec. 515.533, including issuing, advising, negotiating, paying, or
confirming letters of credit (including letters of credit issued by a
financial institution that is a national of Cuba), accepting collateral
for issuing or confirming letters of credit, and processing documentary
collections.
Dated: January 21, 2016.
John E. Smith,
Acting Director, Office of Foreign Assets Control.
[FR Doc. 2016-01559 Filed 1-26-16; 8:45 am]
BILLING CODE 4810-AL-P