[Federal Register Volume 59, Number 167 (Tuesday, August 30, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-21447]


[[Page Unknown]]

[Federal Register: August 30, 1994]


      
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Part VII

Department of the Treasury
Office of Foreign Assets Control



31 CFR Part 515



_______________________________________________________________________
Department of Commerce
Bureau of Export Administration



15 CFR Part 771




Cuban Assets Control Regulations; Restrictions on Remittances and 
Travel Transactions; General License GIFT; Final Rules
DEPARTMENT OF THE TREASURY


Office of Foreign Assets Control

31 CFR Part 515

 
Cuban Assets Control Regulations; Restrictions on Remittances and 
Travel Transactions

AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Final rule; amendments.

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SUMMARY: Pursuant to the President's announcement on August 20, 1994, 
the Treasury Department is revoking the general authorizations 
permitting cash remittances to Cuba, except to facilitate lawful 
immigration; revoking the general authorizations for persons engaging 
in travel-related transactions in Cuba for purposes of family visits 
and professional research; and significantly restricting the general 
authorization incorporating the authorization contained in the General 
License GIFT, administered by the Department of Commerce, to limit the 
permissible contents of gift parcels eligible for exportation to Cuba 
to medicine, food and strictly humanitarian items. Except for purposes 
of facilitating lawful immigration, cash remittances to Cuba will only 
be permitted for limited humanitarian purposes through case-by-case 
specific licensing. Charter flights between Miami and Havana will only 
be authorized to carry legal immigrants, U.S and foreign government and 
international organization employees traveling on official business, 
journalists, and persons traveling under specific license. Travel-
related transactions by persons demonstrating a compelling need to 
travel to Cuba for humanitarian reasons involving extreme hardship, for 
clearly and narrowly defined educational and religious activities, for 
activities of recognized human rights organizations investigating cases 
of human rights violations, or for activities related to professional 
research, telecommunications, or the exportation, importation, or 
transmission of information or informational materials will be 
considered for a specific license on a case-by-case basis.

EFFECTIVE DATE: August 26, 1994, 11:00 a.m.

FOR FURTHER INFORMATION: Steven I. Pinter, Chief of Licensing (tel.: 
202/622-2480), William F. Wasley, Chief of Enforcement (tel.: 202/622-
2430), Dennis P. Wood, Chief, Compliance Programs Division (202/622-
2490), or William B. Hoffman, Chief Counsel (tel.: 202/622-2410), 
Office of Foreign Assets Control, Department of the Treasury, 
Washington, D.C. 20220.

SUPPLEMENTARY INFORMATION:

Electronic Availability:

    This document is available as an electronic file on The Federal 
Bulletin Board the day of publication in the Federal Register. By modem 
dial 202/512-1387 or call 202/515-1530 for disks or paper copies. This 
file is available in Postscript, WordPerfect 5.1 and ASCII.

Background

    On August 20, 1994, President Clinton announced steps to limit the 
ability of the Cuban government to accumulate foreign exchange. 
Accordingly, the Office of Foreign Assets Control (``FAC'') is amending 
the Cuban Assets Control Regulations, 31 CFR Part 515 (the 
``Regulations''), to implement these measures by revising existing 
provisions that heretofore have generally authorized travel-related 
transactions, cash remittances, and the shipment of gift parcels to 
Cuba. Specifically, Sec. 515.533 no longer authorizes exportation to 
Cuba of gift parcels pursuant to General License GIFT, Sec. 771.18 of 
the Export Administration Regulations, 15 CFR Parts 768-799 (the 
``EAR''), except those containing only food, vitamins, seeds, 
medicines, medical supplies and devices, hospital supplies and 
equipment, equipment for the handicapped, clothing, personal hygiene 
items, veterinary medicines and supplies, fishing equipment and 
supplies, soap-making equipment, or certain radio equipment and 
batteries for such equipment. The complete list of eligible items is 
set forth in Sec. 771.18 of the EAR.
    Section 515.560 of the Regulations is revised to limit the 
categories of travelers to Cuba who are generally authorized to engage 
in travel-related transactions to journalists and officials of the 
United States or foreign governments or international organizations 
traveling on official business. ``Fully-hosted'' travelers are no 
longer authorized to travel aboard charter flights between the United 
States and Cuba. Section 515.416 is revised to set forth the criteria 
by which specific licenses may be issued for travel-related 
transactions for ``professional research.'' Travel transactions by 
close relatives of Cuban nationals may only be authorized on a case-by-
case basis by specific license, and only under circumstances of extreme 
hardship. Specific licenses for travel-related transactions may still 
be issued for other strictly humanitarian purposes, for clearly defined 
educational or religious activities, for activities of recognized human 
rights organizations investigating human rights violations, or for 
activities related to professional research, telecommunications, or the 
exportation, importation or transmission of information or 
informational materials.
    Section 515.563, which previously provided general authorization 
for family remittances for the support of close relatives in Cuba, is 
revised to permit transfers of funds to Cuba only if authorized on a 
case-by-case basis for humanitarian purposes upon a demonstration of 
extreme hardship. However, payments not exceeding $500 to facilitate a 
close relative's lawful immigration to the United States remain 
generally licensed. All other general authorizations contained in the 
Regulations for remittances are revoked. In particular, Sec. 515.564 is 
revised to specify that remittances to Cuba for purposes of 
facilitating a Cuban national's travel to the United States for 
purposes other than immigration may only be made pursuant to a specific 
license. Similarly prohibited are remittances to Cuba in connection 
with intellectual property protection (Sec. 515.528) and public 
performances (Sec. 515.565).
    Because the Regulations involve a foreign affairs function, 
Executive Order 12866 and 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.

List Of Subjects in 31 CFR Part 515

    Administrative practice and procedure, Cuba, Exports, Foreign 
trade, Intellectual property, Remittances, Travel restrictions.
    For the reasons set forth in the preamble, 31 CFR part 515 is 
amended as set forth below:

PART 515--CUBAN ASSETS CONTROL REGULATIONS

    1. The authority citation for part 515 continues to read as 
follows:
    Authority: 50 U.S.C. App. 1-44; 22 U.S.C. 6001-6010; 22 U.S.C. 
2370(a); Proc. 3447, 3 CFR, 1959-1963 Comp., p. 157; E.O. 9193, 3 
CFR, 1938-1943 Comp., p. 1174; E.O. 9989, 3 CFR, 1943-1948 Comp., p. 
748; E.O. 12854, 58 FR 36587, July 7, 1993.

Subpart D--Interpretations

    2. Section 515.416 is revised to read as follows:


Sec. 515.416   Professional research and similar activities.

    (a) Section 515.560(b) sets forth the criteria by which specific 
licenses for transactions related to travel to, from, and within Cuba 
may be issued for persons who are engaging in professional research and 
similar activities of a noncommercial, academic nature.
    (1) Persons are considered to be engaged in professional research 
for purposes of this section only if they are full-time professionals 
who travel to Cuba to do research in their professional areas, their 
research is specifically related to Cuba and will constitute a full 
work schedule in Cuba, and there is a substantial likelihood of public 
dissemination of the product of their research. No transactions related 
to tourist or recreational travel within Cuba are authorized in 
connection with professional research, except those that are consistent 
with a full schedule of research activities.
    (2) Similar activities include attendance by professionals with an 
established interest in Cuba at professional meetings where research on 
Cuba is shared, and travel for noncommercial research purposes 
specifically related to Cuba by persons who are working to qualify 
themselves academically as professionals (e.g., certain graduate degree 
candidates). Study visits to Cuba in connection with pre-college or 
undergraduate college course work are not within the scope of the term 
professional research and similar activities.
    (b) Categories of travel which do not qualify as professional 
research or similar activities and for which specific license requests 
will be denied include recreational travel; tourist travel; travel in 
pursuit of a hobby; general study tours; general orientation visits; 
student class field trips; youth camps; research for personal 
satisfaction only; travel by fishing or bird-watching groups and 
similar affinity groups; and any travel for an authorized research 
purpose, if the schedule of activities includes free time, travel, or 
recreation in excess of that consistent with a full work schedule of 
professional research and similar activities.
    (c) A group does not fall within the scope of the term professional 
research and similar activities merely because some members of the 
group could qualify individually for specific licensing under this 
category. For example, a specific license authorizing travel-related 
transactions by a fish biologist who travels to Cuba to engage in 
professional research does not authorize other persons who might travel 
with the fish biologist but whose principal purpose in travel is to 
engage in recreational or trophy fishing. The fact that such persons 
may engage in certain activities with, or under the direction of, the 
professional fish biologist, such as measuring or recording facts about 
their catch, does not bring these individuals' activities within the 
scope of professional research and similar activities.
    (d) A person will not qualify as engaging in professional research 
or similar activities merely because that person is a professional who 
plans to travel to Cuba. For example, a professor of history interested 
in traveling to Cuba for the principal purpose of learning or 
practicing Spanish or attending general purpose lectures devoted to 
Cuban culture and contemporary life would not qualify for a specific 
license. A doctoral candidate in economics traveling to Cuba to 
undertake research for a dissertation on the Cuban economy may qualify 
for a specific license for activities directly related to the research, 
but would not be authorized to stay an extra week in Cuba in order to 
attend a seminar on Cuban arts and crafts.

Subpart E--Licenses, Authorizations, and Statements of Licensing 
Policy


Sec. 515.522  [Removed and reserved]

    3. Section 515.522 is removed and reserved.
    4. Introductory paragraph (a) of Sec. 515.528 is amended by adding 
the following before the colon: ``, provided any payment to Cuba or a 
Cuban national is deposited into a blocked, interest-bearing account at 
a domestic bank''
    5. Section 515.533 is amended by adding a new paragraph (d) to read 
as follows:


Sec. 515.533   Transactions incident to exportations to designated 
countries.

* * * * *

    (d) This section does not authorize any exportation under General 
License GIFT, 15 CFR 771.18, except gift parcels that contain only 
food, vitamins, seeds, medicines, medical supplies and devices, 
hospital supplies and equipment, equipment for the handicapped, 
clothing, personal hygiene items, veterinary medicines and supplies, 
fishing equipment and supplies, soap-making equipment, or certain radio 
equipment and batteries for such equipment, as specifically set forth 
in Sec. 771.18, and that otherwise comply with the requirements of that 
section.
    6. Paragraph (g) of Sec. 515.560 is amended by adding after the 
word ``provided'' in the last sentence thereof the words ``that the 
travel is not aboard a direct flight between the United States and Cuba 
and'' and by revising paragraphs (a) and (b) to read as follows:


Sec. 515.560  Certain transactions incident to travel to and within 
Cuba.

    (a) General license. The transactions in paragraph (c) of this 
section are authorized in connection with travel to Cuba by:
    (1) Persons who are officials of the United States Government or of 
any foreign government, or of any intergovernmental organization of 
which the United States is a member, and who are traveling on official 
business; or
    (2) Journalists regularly employed in that capacity by a news 
reporting organization.
    (b) Specific Licenses. Specific licenses authorizing the 
transactions in paragraph (c) of this section may be issued when 
extreme hardship is demonstrated in cases involving extreme 
humanitarian need to persons and their close relatives, or other 
persons living in the same household, who are traveling to visit close 
relatives in Cuba. Specific licenses may also be issued to persons 
demonstrating a compelling need to travel to Cuba for humanitarian 
reasons, for professional research and similar activities as defined in 
Sec. 515.416, for clearly defined educational or religious activities, 
for activities of recognized human rights organizations investigating 
human rights violations, or for purposes related to the exportation, 
importation, or transmission of information or informational materials.
    (1) For purposes of this section, the term close relative means 
spouse, child, grandchild, parent, grandparent, great grandparent, 
uncle, aunt, brother, sister, nephew, niece, first cousin, or spouse, 
widow, or widower of any of the foregoing. The term close relative also 
means mother-in-law, father-in-law, daughter-in-law, son-in-law, 
sister-in-law, or brother-in-law.
    (2) Nothing in this section authorizes transactions in connection 
with tourist travel to Cuba. Travel to Cuba that is characterized as 
falling within the criteria specified in paragraph (b) is prohibited 
unless specifically licensed.
* * * * *

    7. The introductory text of paragraph (a) and paragraph (a)(1) of 
Sec. 515.563 is revised to read as follows, and paragraph (c) is 
removed.


Sec. 515.563   Family remittances to nationals of Cuba.

    (a) Specific licenses may be issued on a case-by-case basis 
authorizing remittances to a close relative of the remitter or of the 
remitter's spouse who is a national of Cuba and who is resident in Cuba 
or in the authorized trade territory, provided they are not made from 
blocked accounts. Such remittances will be authorized only:
    (1) In circumstances where extreme humanitarian need is 
demonstrated, including terminal illness or severe medical emergency.
 * * * * *

    8. Paragraph (d) of Sec. 515.564 is removed and paragraph (c) is 
revised to read as follows:


Sec. 515.564   Certain transactions incident to travel to, from and 
within the United States by certain Cuban nationals.

* * * * *

    (c) Remittances by persons subject to U.S. jurisdiction to Cuba or 
a Cuban national, directly or indirectly, for transactions on behalf of 
a Cuban national, are only authorized pursuant to paragraph (a) of this 
section when made for the purpose of enabling the payee to emigrate 
from Cuba to the United States, including the purchase of airline 
tickets and payment of visa fees or other travel-related fees. Such 
remittances may not exceed $500, and, except for purposes of processing 
a letter of invitation or similar document on behalf of a Cuban 
national, may be transferred only after the Cuban national has received 
a valid visa issued by the State Department or other approved U.S. 
immigration documentation. Any amount remitted to Cuba directly or 
indirectly in conjunction with the processing of a letter of invitation 
or similar document must be deducted from the $500 limit. Specific 
licenses may be issued to permit remittances by persons subject to U.S. 
jurisdiction to Cuba or a Cuban national, directly or indirectly, for 
transactions to facilitate non-immigrant travel by a Cuban national to 
the United States under circumstances where extreme humanitarian need 
is demonstrated, including terminal illness or severe medical 
emergency.


Sec. 515.565  [Amended]

    9. Paragraph (b) of Sec. 515.565 is removed, paragraph (c) is 
redesignated as paragraph (b), and the words ``or (b)'' are removed.


Sec. 515.566  [Amended]

    10. Section 515.566 is amended by changing the reference in 
paragraph (a)(3) from ``this section'' to ``this part'', and by 
amending paragraph (c)(4)(ii) by removing the words ``exceeded the 
annual ceiling on remittances to any one household or payee established 
in this section'' and adding in their place ``violated the terms of any 
authorization for remittances contained in or issued pursuant to this 
part''.


Sec. 515.569  [Amended]

    11. In Sec. 515.569, the first sentence of paragraph (c) is amended 
by adding the words ``or pursuant to'' before ``Sec. 515.563.'', and 
paragraph (d) is amended by removing the words ``remittances authorized 
for the traveler's household by Sec. 515.563(a)(1) and''.

    Dated: August 25, 1994.
Steven I. Pinter,
Acting Director, Office of Foreign Assets Control.
    Approved: August 25, 1994.
R. Richard Newcomb,
Acting Deputy Assistant Secretary (Law Enforcement).
[FR Doc. 94-21447 Filed 8-26-94; 11:00 am]
BILLING CODE 4810-25-F