[Federal Register Volume 64, Number 92 (Thursday, May 13, 1999)]
[Rules and Regulations]
[Pages 25808-25820]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-12083]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 515


Cuban Assets Control Regulations: Sales of Food and Agricultural 
Inputs; Remittances; Educational, Religious, and Other Activities; 
Travel-Related Transactions; U.S. Intellectual Property

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Final rule; amendments.

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SUMMARY: Pursuant to the President's announcement of January 5, 1999, 
the Treasury Department is amending the Cuban Assets Control 
Regulations to modify certain provisions with respect to remittances 
and travel-related transactions and to make other clarifying and 
conforming amendments to the regulations. The regulations also 
implement a statutory provision excluding from an existing general 
license transactions involving certain intellectual property used in 
connection with a business or assets that were confiscated.

EFFECTIVE DATE: May 10, 1999.

FOR FURTHER INFORMATION CONTACT: Dennis P. Wood, Chief, Compliance 
Programs Division (tel.: 202/622-2490); Steven I. Pinter, Chief of 
Licensing (tel.: 202/622-2480); Charles L. Bishop, OFAC-Miami Sanctions 
Coordinator (tel.: 305/810-5140); or William B. Hoffman, Chief Counsel 
(tel.: 202/622-2410); Office of Foreign Assets Control, Department of 
the Treasury, Washington, DC 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 and type ``/GO FAC,'' or call 202/512-1530 for 
disk or paper copies. This file is available for downloading without 
charge in ASCII and Adobe AcrobatR readable (*.PDF) formats. 
For Internet access, the address for use with the World Wide Web (Home 
Page), Telnet, or FTP protocol is: fedbbs.access.gpo.gov. The document 
is also accessible for downloading in ASCII format without charge from 
Treasury's Electronic Library (``TEL'') in the ``Research Mall'' of the 
FedWorld bulletin board. By modem, dial 703/321-3339, and select self-
expanding file ``T11FR00.EXE'' in TEL. For Internet access, use one of 
the following protocols: Telnet = fedworld.gov (192.239.93.3); World 
Wide Web (Home

[[Page 25809]]

Page) = http://www.fedworld.gov; FTP = ftp.fedworld.gov 
(192.239.92.205). Additional information concerning the programs of the 
Office of Foreign Assets Control is available for downloading from the 
Office's Internet Home Page: http://www.treas.gov/ofac, or in fax form 
through the Office's 24-hour fax-on-demand service: call 202/622-0077 
using a fax machine, fax modem, or (within the United States) a touch-
tone telephone.

Background

    On January 5, 1999, President Clinton announced that the United 
States is taking additional steps to expand the flow of humanitarian 
assistance to Cuba and strengthen independent civil society in that 
country. Among the initiatives the President announced were an 
expansion of remittances to support Cuban families and organizations 
independent of the Cuban government; expansion of people-to-people 
contact through two-way exchanges among academics, athletes, 
scientists, and others and streamlining the approval process for their 
visits; and the sale of food and agricultural commodities to 
independent nongovernmental entities.
    The U.S. Treasury Department's Office of Foreign Assets Control 
(``OFAC'') is implementing these steps through amendments to the Cuban 
Assets Control Regulations, 31 CFR Part 515 (the ``CACR''), and 
reorganizing the CACR to place related provisions together. In 
addition, OFAC is implementing section 211 of Division A, Title II, of 
the Omnibus Consolidated and Emergency Supplemental Appropriations Act, 
1999 (Public Law 105-277 [H.R. 4328]), excluding from the scope of the 
general license contained in Sec. 515.527 any transaction or payment 
with respect to a mark, trade name, or commercial name that is the same 
as or substantially similar to a mark, trade name, or commercial name 
that was used in connection with a business or assets that were 
confiscated, unless the original owner of the mark, trade name, or 
commercial name or the bona fide successor-in-interest has expressly 
consented.

Remittances

    In implementation of the President's policy statement, these 
amendments include a new general license allowing any person subject to 
U.S. jurisdiction who is 18 years of age or older to make remittances 
of up to $300 in any consecutive 3-month period to the household of any 
individual in Cuba or the authorized trade territory (defined in 
Sec. 515.322 of the CACR to mean all countries not subject to economic 
sanctions administered by OFAC pursuant to chapter V, 31 CFR) who is 
not a senior government or senior communist party official of Cuba. 
Persons subject to U.S. jurisdiction may also be specifically licensed 
to send remittances to organizations independent of the Cuban 
government. Descriptions of specific amendments concerning remittances 
follow.
    Old Sec. 515.521 previously contained a general license authorizing 
remittances, including those from blocked accounts in the name of the 
payee or members of his or her household, not to exceed $100 per 
calendar month to Cuban nationals in the authorized trade territory. 
Old Sec. 515.556 stated that remittances from blocked accounts sent to 
Cuban nationals located in the authorized trade territory pursuant to 
Sec. 515.521 could be increased on a case-by-case basis upon a showing 
that such increase was reasonable and necessary. These sections have 
been largely superseded by the new policy contained in new Sec. 515.570 
on remittances to Cuban nationals. The previous authorization for 
limited remittances from blocked accounts in Sec. 515.521, and the 
reference to it in Sec. 515.566, however, are now incorporated in 
Sec. 515.570(a)(2), (b)(3) and (d)(3), respectively.
    The general license contained in old Sec. 515.563 permitting 
certain remittances to close relatives in Cuba is also incorporated in 
new Sec. 515.570. In addition to the family remittance and the two 
existing $500 emigration remittances, a new individual-to-household 
remittance, not to exceed $300 per quarter, is now authorized by 
general license to any household of a Cuban national in Cuba or the 
authorized trade territory whose household does not include a senior 
Cuban government or communist party official. A remitter may not send 
both a family remittance and an individual-to-household remittance to 
the same household within the same 3-month period. New Sec. 515.570 
also provides for specific licenses authorizing remittances to 
independent nongovernmental entities in Cuba.

Travel-Related Transactions

    Travel-related transactions are now generally authorized in 
connection with specified news support, professional research, and 
athletic activities, and are authorized in connection with broad 
classes of educational and religious activities in Cuba conducted under 
the auspices of U.S. academic institutions or U.S. religious 
organizations that receive long-term specific licenses. In addition, 
specific licenses may be issued for travel-related transactions in 
connection with cultural activities, humanitarian projects, and certain 
trade transactions found consistent with relevant export licensing 
policies. Authorization of travel-related transactions related to 
exportations, however, does not extend to the authorization of the 
exportation itself. Descriptions of specific amendments concerning 
travel-related transactions follow.
    Section 515.420 is added to set forth OFAC's interpretation of 
fully-hosted travel involving Cuba, previously contained in old 
Sec. 515.560(g).
    Old Sec. 515.518 contained a general license permitting debits to 
blocked accounts held in the name of Cuban nationals for their living, 
traveling, and similar personal expenses in the United States, not to 
exceed $250 per calendar month. This provision has now been 
consolidated with old Sec. 515.564 (authorizing the same transactions 
on behalf of Cuban nationals in the United States from non-blocked 
sources) in new Sec. 515.571.
    Section 515.533, authorizing transactions incident to exportations 
of goods directly from the United States to Cuba that are authorized by 
the Department of Commerce, is amended to add a statement that specific 
licenses may be issued authorizing travel-related transactions for 
purposes related to the marketing, sales negotiation, accompanied 
delivery, or servicing of exports. Exportations themselves must be 
specifically licensed by the Department of Commerce. Section 511.533 is 
also amended to state that financing for exportations to Cuba of food 
and agricultural commodities authorized by the Department of Commerce 
is not authorized.
    The authorization in old Sec. 515.540 for the importation of Cuban-
origin goods (other than alcohol and tobacco) contained in personal 
baggage carried by foreign nationals entering the United States has 
been moved to new Sec. 515.569.
    The authorization in Sec. 515.545 for transactions directly 
incident to the importation or exportation of information and 
informational materials is amended to note that specific licenses may 
be issued authorizing travel-related transactions for purposes related 
to such activities.
    Section 515.559, governing licensing policy with respect to 
transactions by U.S.-owned or controlled foreign firms with Cuba, is 
amended to add a statement that specific licenses may be issued 
authorizing travel-related transactions for purposes related to 
marketing, sales negotiation, accompanied delivery, or servicing of

[[Page 25810]]

exports found consistent with relevant OFAC export licensing policy; 
for example, exports of medicine and medical supplies.
    Old Sec. 515.560 authorized by general or specific license travel-
related transactions to and within Cuba incident to specified 
activities set forth in that section. New Sec. 515.560 continues to set 
forth the types of transactions that may be authorized incident to 
travel to Cuba, but the underlying activities for which such 
transactions may be authorized are now described in separate, self-
contained sections, referenced in paragraph (a) of Sec. 515.560. 
Paragraph (b) of Sec. 515.560 is amended to cite OFAC's general 
licensing authority referred to in Sec. 515.801 to license travel-
related transactions for activities not specifically covered in part 
515. Paragraph (c) of Sec. 515.560 continues to list the travel-related 
transactions that may be authorized for generally and specifically 
licensed travelers to Cuba. Paragraph (c)(2) of Sec. 515.560 increases 
the per diem for expenses in Cuba from $100 to the amount authorized 
for civilian employees of the United States Government in Havana, Cuba, 
currently set at $183. Changes in the per diem rate are published as 
required in the monthly State Department publication ``Maximum Travel 
Per Diem Allowances for Foreign Areas,'' available from the Government 
Printing Office or on the Internet at http://www.state.gov/www/
perdiems/index.html. New Sec. 515.560 also incorporates old 
Sec. 515.569, governing currency carried to Cuba by authorized 
travelers.
    Section 515.561, previously reserved, now contains the general 
license authorizing travel-related transactions for the purpose of 
visiting close relatives in Cuba, previously contained in old 
Sec. 515.560(a)(1)(iii). This general license, available once in any 
12-month period, is only available in cases involving ``humanitarian 
need.'' Any additional visits within a 12-month period require specific 
licensing under Sec. 515.561(b), based on ``humanitarian need.''
    Old Sec. 515.562, authorizing U.S.-owned or controlled foreign 
firms to bunker vessels or fuel aircraft owned or controlled by, or 
chartered to, Cuba or nationals thereof, is moved to Sec. 515.558. New 
Sec. 515.562 now contains the general license authorizing travel-
related and other transactions directly incident to official government 
travel to, from, and within Cuba, previously contained in 
Sec. 515.560(a)(1)(i).
    New Sec. 515.563 now contains the general license for travel-
related and other transactions directly incident to journalism, 
previously contained in old Sec. 515.560(a)(1)(ii) and now expanded to 
include travel-related transactions on the part of persons regularly 
employed as supporting broadcast or technical personnel. New 
Sec. 515.563 also incorporates the specific licensing criteria for 
free-lance journalism previously set forth as an interpretive provision 
in old Sec. 515.417 and now expanded to allow for specific licenses 
authorizing transactions for multiple trips to Cuba in certain cases.
    Old Sec. 515.564, authorizing transactions incident to travel to, 
from, and within the United States by certain Cuban nationals, is 
incorporated in new Sec. 515.571. New Sec. 515.564 consolidates old 
Secs. 515.416, 515.419(a)(1), and 515.560(b), setting forth a general 
license for travel-related and other transactions directly incident to 
professional research and attendance at professional meetings in Cuba 
hosted by international organizations; these activities were previously 
authorized only by specific license.
    Old Sec. 515.565, authorizing transactions for public exhibitions 
and performances by specific license, is incorporated in new 
Sec. 515.567. New Sec. 515.565 consolidates old Secs. 515.419, 
515.560(b), and 515.573 to authorize travel-related and other 
transactions directly incident to a wide range of educational 
activities, including those undertaken by secondary school students, 
where the traveler carries a letter from his or her academic 
institution located in the United States confirming that he or she is 
affiliated with that institution. Use of this authorization requires 
that the accredited U.S. academic institution under whose auspices the 
educational activities are undertaken first obtain a specific license 
from OFAC authorizing the institution and its students and employees to 
engage in travel-related and other transactions directly incident to 
the generally-licensed educational activities set forth in 
Sec. 515.565(a)(2)(i) to (a)(2)(vii). Such activities include teaching 
at a Cuban academic institution by persons employed in a teaching 
capacity in the United States, as well as sponsoring Cuban scholars to 
teach or engage in other scholarly activity in the United States, 
including the payment of a stipend or salary to the sponsored scholars. 
In addition, specific licenses pursuant to Sec. 515.565(b) may be 
issued authorizing transactions incident to certain educational 
activities not covered by a specific license issued pursuant to 
Sec. 515.565(a) to a U.S. academic institution or incident to certain 
educational exchanges not involving academic study pursuant to a degree 
program.
    Old Sec. 515.566, previously setting forth the criteria pursuant to 
which persons may be authorized to engage in transactions involving 
Cuba as travel or carrier service providers or family remittance 
forwarders, is moved to new Sec. 515.572. New Sec. 515.566(a) 
authorizes travel-related and other transactions directly incident to 
religious activities in Cuba, where the traveler carries a letter from 
his or her religious organization located in the United States 
confirming that he or she is affiliated with that organization and is 
traveling to Cuba to undertake religious activities under the 
organization's auspices. Use of this authorization requires that the 
U.S. religious organization itself obtain a specific license from OFAC 
authorizing the religious organization and affiliated individuals and 
groups to engage in travel-related and other transactions that are 
directly incident to religious activities in Cuba under the auspices of 
the licensed religious organization. Pursuant to Sec. 515.566(b), 
specific licenses may also be issued for other religious activities in 
Cuba.
    Old Sec. 515.567, setting forth specific licensing criteria for 
unblocking certain corporate assets, is now contained in Sec. 515.521. 
New Sec. 515.567(a) sets forth a general license authorizing travel-
related and other transactions directly incident to certain amateur and 
semi-professional athletic competitions by athletes or teams. Paragraph 
(b) of Sec. 515.567 incorporates old Sec. 515.565, setting forth the 
specific licensing criteria for travel-related and other transactions 
directly incident to participation in a public performance, clinic, 
workshop, athletic or other competition, or exhibition in Cuba, or for 
transactions on behalf of a Cuban national in the United States for the 
purpose of participation in such activities. Specific licenses 
authorizing transactions for multiple trips to Cuba for these purposes 
may also be issued.
    Old Sec. 515.568, setting forth specific licensing criteria for 
unblocking certain decedent estate assets, is moved to Sec. 515.522.
    Old Sec. 515.569, governing the carriage of currency by travelers 
to Cuba, has been incorporated into new Sec. 515.560. New Sec. 515.569 
now contains old Sec. 515.540, generally authorizing foreign persons to 
import Cuban-origin goods (except for tobacco and alcohol) as 
accompanied baggage when entering the United States.
    Old Sec. 515.572, setting forth specific licensing criteria for the 
operation of news bureaus in Cuba, is moved to new Sec. 515.573.

[[Page 25811]]

    Section 515.574, setting forth specific licensing criteria for 
authorizing transactions in support of the Cuban people, is amended to 
add a statement that specific licenses may be issued authorizing 
travel-related transactions for such activities.
    Section 515.575 is added to set forth specific licensing criteria 
for authorizing travel-related and other transactions for certain 
humanitarian projects designed to directly benefit the Cuban people, 
including medical and health-related, environmental, small-scale 
enterprise, and agricultural and rural development projects. Specific 
licenses authorizing transactions for multiple trips to Cuba for these 
purposes may also be issued.
    Section 515.576 is added to set forth specific licensing criteria 
for authorizing travel-related and other transactions for activities of 
private foundations or research or educational institutes with an 
established interest in international relations. Specific licenses 
authorizing transactions for multiple trips to Cuba for these purposes 
may also be issued.

Miscellaneous Provisions

    Section 515.206 of the CACR is amended to conform the scope of 
exempt transactions to include the statutory exemption for the donation 
of food to nongovernmental organizations or individuals in Cuba 
contained in section 1705(b) of the Cuban Democracy Act (22 U.S.C. 
6001-6010, 6004(b)).
    Section 515.527 of the CACR is amended to conform the scope of 
authorized transactions pertaining to intellectual property rights to 
the statutory restriction contained in section 211 of Division A, Title 
II, of the Omnibus Consolidated and Emergency Supplemental 
Appropriations Act, 1999 (Public Law 105-277 [H.R. 4328]), excluding 
from the scope of the general license contained in Sec. 515.527 any 
transaction or payment with respect to a mark, trade name, or 
commercial name that is the same as or substantially similar to a mark, 
trade name, or commercial name that was used in connection with a 
business or assets that were confiscated, unless the original owner of 
the mark, trade name, or commercial name or the bona fide successor-in-
interest has expressly consented.
    Old Sec. 515.571, waiving under certain circumstances the 
prohibition contained in Sec. 515.207 (prohibiting certain vessels that 
have engaged in trade with Cuba from entering U.S. ports), is moved to 
Sec. 515.550 and amended to expand the waiver to cover vessels involved 
in any trade transactions authorized pursuant to Sec. 515.533.
    The following two charts provide easy reference to the regulatory 
changes that have been made: the first lists the new section 
designations, their subjects, and from what former sections they are 
derived; the second lists the former section designations and indicates 
where the content of the old sections now appears.

Derivation of New Sections


 
------------------------------------------------------------------------
    New Section             Subject                     Source
------------------------------------------------------------------------
Sec.  515.420       Fully-hosted travel      Sec.  515.560(g)
Sec.  515.521       Blocked corporate        Sec.  515.567
                     assets
Sec.  515.522       Blocked estate assets    Sec.  515.568
Sec.  515.550       Vessel waiver            Sec.  515.571
Sec.  515.558       Cuban carriers           Sec.  515.562
Sec.  515.561       Family visits            Sec.  515.560(a)
Sec.  515.562       Official travel          Sec.  515.560(a)
Sec.  515.563       Journalism               Secs.  515.417, 515.560(a)
Sec.  515.564       Professional research    Secs.  515.416,
                                              515.419(a)(1), 515.560(b),
                                              CDA
Sec.  515.565       Educational activities   Secs.  515.419, 515.560(b),
                                              515.573
Sec.  515.566       Religious activities     Sec.  515.560(b)
Sec.  515.567       Athletic/cultural        Sec.  515.565
                     activities
Sec.  515.568       Reserved                 ...........................
Sec.  515.569       Foreign persons'         Sec.  515.540
                     baggage
Sec.  515.570       Remittances              Secs.  515.521, 515.556,
                                              515.563
Sec.  515.571       Cubans in United States  Secs.  515.518, 515.564
Sec.  515.572       Travel and carrier       Sec.  515.566
                     service
Sec.  515.573       News organizations       Sec.  515.572
Sec.  515.575       Humanitarian projects    Sec.  515.560(b); new
Sec.  515.576       Foundation projects      Sec.  515.416(a)(1), (ii);
                                              new
------------------------------------------------------------------------


Distribution of Former Sections


 
------------------------------------------------------------------------
  Former Section            Subject                  New Location
------------------------------------------------------------------------
Sec.  515.416       Professional research    Sec.  515.564
Sec.  515.417       Free-lance journalism    Sec.  515.563(b)
Sec.  515.419       Educational activities   Sec.  515.565
Sec.  515.518       Cubans in United States  Sec.  515.571(b)
Sec.  515.521       Remittances to Cubans    Sec.  515.570
Sec.  515.540       Foreign persons'         Sec.  515.569
                     baggage
Sec.  515.556       Remittances to Cubans    Sec.  515.570
Sec.  515.558       Sole proprietors         Sec.  515.546
Sec.  515.562       Cuban carriers           Sec.  515.558
Sec.  515.563       Family remittances       Sec.  515.570
Sec.  515.564       Cubans in United States  Sec.  515.571(a)
Sec.  515.565       Public exhibitions       Sec.  515.567(b)
Sec.  515.566       Travel and carrier       Sec.  515.572
                     service
Sec.  515.567       Blocked corporate        Sec.  515.521
                     assets
Sec.  515.568       Blocked estate assets    Sec.  515.522
Sec.  515.569       Currency                 Sec.  515.560
Sec.  515.571       Vessel waiver            Sec.  515.550
Sec.  515.572       News organizations       Sec.  515.573
Sec.  515.573       Educational activities   Sec.  515.565
------------------------------------------------------------------------

    Because the Regulations involve a foreign affairs function, 
Executive Order 12866 and the provisions of the Administrative 
Procedure Act (5 U.S.C. 553)(the ``APA'') 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 Regulations are being issued without prior notice and public 
comment procedure pursuant to the APA. The collections of information 
related to the Regulations are contained in 31 CFR part 501 (the 
``Reporting and Procedures Regulations''). Pursuant to the Paperwork 
Reduction Act of 1995 (44 U.S.C. 3507), those collections of 
information have been approved by the Office of Management and Budget 
under control number 1505-0164. An agency may not conduct or sponsor, 
and a person is not required to respond to, a collection of information 
unless the

[[Page 25812]]

collection of information displays a valid control number.

List of Subjects in 31 CFR Part 515

    Administrative practice and procedure, Air carriers, Banks, 
banking, Blocking of assets, Cuba, Currency, Estates, Exports, Foreign 
investment in the United States, Foreign trade, Imports, Informational 
materials, Intellectual property, Penalties, Publications, Reporting 
and recordkeeping requirements, Securities, Shipping, Specially 
designated nationals, Terrorism, Travel restrictions, Trusts and 
trustees, Vessels.

    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: 18 U.S.C. 2332d; 22 U.S.C. 2370(a), 6001-6010, 6021-
6091; 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. 105-277; E.O. 9193, 7 FR 
5205, 3 CFR, 1938-1943 Comp., p. 1147; E.O. 9989, 13 FR 4891, 3 CFR, 
1943-48 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 D--Prohibitions

    2. Section 515.206 is amended as follows:
    A. The section heading is revised to read as set forth below.
    B. Paragraphs (a) through (d) are redesignated as paragraphs (a)(1) 
through (a)(4).
    C. A heading for paragraph (a) is added as set forth below.
    D. Redesignated paragraph (a)(3) is amended by removing the words 
``section 779 of the Export Administration Regulations, 15 CFR parts 
768-799,'' and adding in their place the words ``the Export 
Administration Regulations, 15 CFR parts 730-774,''.
    E. Redesignated paragraph (a)(4) is amended by removing the words 
``Sec. 515.560 or by specific license.'' and adding in their place 
``Sec. 515.545.''.
    F. New paragraph (b) is added to read as follows:


Sec. 515.206  Exempt transactions.

    (a) Information and informational materials. (1) * * *
* * * * *
    (b) Donation of food. The prohibitions contained in this part do 
not apply to transactions incident to the donation of food to 
nongovernmental organizations or individuals in Cuba.

Subpart C--General Definitions

    3. Section 515.302 is amended as follows:
    A. Paragraph (b) is redesignated as new paragraph (c).
    B. New paragraph (b) is added to read as follows:


Sec. 515.302  National.

* * * * *
    (b) Persons who travel in Cuba do not become nationals of Cuba 
solely because of such travel.
* * * * *

Subpart D--Interpretations


Sec. 515.407  [Amended]

    4. Section 515.407 is amended by revising ``Sec. 515.568'' to read 
``Sec. 515.522''.


Sec. 515.415  [Amended]

    5. Section 515.415 is amended as follows:
    A. Paragraph (b) is amended by revising ``Sec. 515.564'' to read 
``Sec. 515.571''.
    B. Paragraph (c) is amended by removing the words ``within the 
general license of Sec. 515.560'' and adding in their place ``as set 
forth in Sec. 515.560(c)''.


Sec. 515.416  [Removed and reserved]

    6. Section 515.416 is removed and reserved.


Sec. 515.417  [Removed and reserved]

    7. Section 515.417 is removed and reserved.


Sec. 515.418  [Amended]

    8. Paragraph (b) of Sec. 515.418 is amended by revising 
``515.560(b)'', wherever it appears, to read ``515.545''.


Sec. 515.419  [Removed and reserved]

    9. Section 515.419 is removed and reserved.
    10. Section 515.420 is added to Subpart D to read as follows:


Sec. 515.420  Fully-hosted travel to Cuba.

    (a) A person subject to the jurisdiction of the United States who 
is not authorized to engage in travel-related transactions in which 
Cuba has an interest will not be considered to violate the prohibitions 
of this part when a person not subject to the jurisdiction of the 
United States covers the cost of all transactions related to the travel 
of the person subject to the jurisdiction of the United States (the 
``fully-hosted'' traveler), provided that:
    (1) No person subject to the jurisdiction of the United States has 
made any payments or transferred any property or provided any service 
to Cuba or a Cuban national in connection with such fully-hosted travel 
or has prepaid or reimbursed any person for travel expenses, except as 
authorized in paragraph (b) of this section; and
    (2) The travel is not aboard a direct flight between the United 
States and Cuba authorized pursuant to Sec. 515.572.
    (b) Travel will be considered fully hosted notwithstanding a 
payment by a person subject to the jurisdiction of the United States 
for transportation to and from Cuba, provided that the carrier 
furnishing the transportation is not a Cuban national. Persons 
authorized as travel service providers pursuant to Sec. 515.572 may 
book passage on behalf of fully-hosted travelers through to Cuba, 
provided that such travel is not on a direct flight from the United 
States and that the carrier furnishing the transportation is not a 
Cuban national.
    (c) Unless otherwise authorized pursuant to this part, any person 
subject to the jurisdiction of the United States who has traveled to 
Cuba shall be presumed to have engaged in travel-related transactions 
prohibited by Sec. 515.201. This presumption may be rebutted by a 
statement signed by the traveler providing specific supporting 
documentation showing that no transactions were engaged in by the 
traveler or on the traveler's behalf by other persons subject to U.S. 
jurisdiction or showing that the traveler was fully hosted by a third 
party not subject to the jurisdiction of the United States and that 
payments made on the traveler's behalf were not in exchange for 
services provided to Cuba or any national thereof. The statement should 
address the circumstances of the travel and explain how it was possible 
for the traveler to avoid entering into travel-related transactions 
such as payments for meals, lodging, transportation, bunkering of 
vessels, visas, entry or exit fees, and gratuities. If applicable, the 
statement should state what party hosted the travel and why. The 
statement must provide a day-to-day account of financial transactions 
waived or entered into on behalf of the traveler by the host, including 
but not limited to visa fees, room and board, local or international 
transportation costs, and Cuban airport departure taxes. In the case of 
pleasure craft calling at Cuban marinas, the statement must also 
address related refueling costs, mooring fees, club membership fees, 
provisions, cruising permits, local land transportation, and departure 
fees. Travelers fully hosted by a person or persons not subject to the 
jurisdiction of the United States must also provide an

[[Page 25813]]

original signed statement from their sponsor or host, specific to that 
traveler, confirming that the travel was fully hosted and the reasons 
for the travel.
    Note to paragraph (c): Travelers should be aware that fully-
hosted travelers are not travelers whose travel-related transactions 
are licensed pursuant to this part and therefore such fully-hosted 
travelers may not engage in the travel-related transactions set 
forth in Sec. 515.560(c), including the purchase and importation of 
up to $100 of Cuban merchandise for personal use. All documentation 
described in paragraph (c) of this section is subject to the 
recordkeeping requirements, including the record retention period, 
in Sec. 501.601 of this chapter.
    (d) Persons planning to travel to Cuba may access the Office of 
Foreign Assets Control's information resources over the Internet at 
http://www.treas.gov/ofac, through the office's fax-on-demand service 
at 202/622-0077, or by calling the office's Compliance Programs 
Division at 202/622-2490, prior to their departure to familiarize 
themselves with the requirements for fully-hosted travel. Other 
inquiries concerning travel-related transactions should be addressed to 
the Licensing Division, Office of Foreign Assets Control, U.S. 
Department of the Treasury, 1500 Pennsylvania Avenue, NW--Annex, 
Washington, DC 20220.

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


Sec. 515.518  [Removed and reserved]

    11. Section 515.518 is removed and reserved.


Secs. 515.521, 515.563, 515.564, 515.565, 515.569, 515.573  [Removed]

    12. Sections 515.521, 515.563, 515.564, 515.565, 515.569, and 
515.573 are removed.
    13. The sections listed in the first column below are redesignated 
as shown in the second column:


 
------------------------------------------------------------------------
            Old Section                          New Section
------------------------------------------------------------------------
Sec.  515.540                        Sec.  515.569
Sec.  515.558                        Sec.  515.546
Sec.  515.562                        Sec.  515.558
Sec.  515.566                        Sec.  515.572
Sec.  515.567                        Sec.  515.521
Sec.  515.568                        Sec.  515.522
Sec.  515.571                        Sec.  515.550
Sec.  515.572                        Sec.  515.573
------------------------------------------------------------------------

Sec. 515.523  [Amended]

    14. Paragraph (b)(3) of Sec. 515.523 is amended by revising 
``Sec. 515.568'' to read ``Sec. 515.522''.


Sec. 515.525  [Amended]

    15. Paragraph (b) of Sec. 515.525 is amended by revising 
``Sec. 515.523, Sec. 515.568'' to read ``Sec. 515.522, Sec. 515.523''.
    16. Section 515.527 is amended by designating the existing text as 
paragraph (a)(1) and adding paragraph (a)(2) to read as follows:


Sec. 515.527  Certain transactions with respect to United States 
intellectual property.

    (a)(1) * * *
    (2) No transaction or payment is authorized or approved pursuant to 
paragraph (a)(1) of this section with respect to a mark, trade name, or 
commercial name that is the same as or substantially similar to a mark, 
trade name, or commercial name that was used in connection with a 
business or assets that were confiscated, as that term is defined in 
Sec. 515.336, unless the original owner of the mark, trade name, or 
commercial name, or the bona fide successor-in-interest has expressly 
consented.
* * * * *
    17. In Sec. 515.533, the section heading is revised; the 
introductory text of paragraph (a) and paragraphs (a)(1) and (d) are 
revised; and paragraphs (e) and (f) and a note to the section are added 
to read as follows:


Sec. 515.533  Transactions incident to exportations from the United 
States to Cuba.

    (a) All transactions ordinarily incident to the exportation of 
goods, wares, and merchandise from the United States to any person 
within Cuba are hereby authorized, provided the following terms and 
conditions are complied with:
    (1) The exportation is licensed or otherwise authorized by the 
Department of Commerce under the provisions of the Export 
Administration Act of 1979, as amended (50 U.S.C. app. 2401-2420) (see 
the Export Administration Regulations, 15 CFR 730-774); and
* * * * *
    (d) This section does not authorize any exportation under License 
Exception GFT, 15 CFR 740.12, 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 15 CFR 740.12, and that otherwise comply with the requirements of 
that section.
    (e) Specific licenses may be issued on a case-by-case basis 
authorizing the travel-related transactions set forth in 
Sec. 515.560(c) and other transactions that are directly incident to 
the marketing, sales negotiation, accompanied delivery, or servicing of 
exports that appear consistent with the export licensing policy of the 
Department of Commerce.
    (f) This section does not authorize trade financing with respect to 
the commercial sale of food or agricultural commodities.
    Note to Sec. 515.533: For the waiver of the prohibition 
contained in Sec. 515.207 on certain vessel transactions for vessels 
transporting shipments of goods, wares, or merchandise between the 
United States and Cuba pursuant to this section, see Sec. 515.550.


Sec. 515.540  [Removed and reserved]

    18. Section 515.540 is removed and reserved.
    19. Section 515.545 is amended as follows:
    A. Paragraph (b) is amended by revising ``Sec. 515.206(c)'' to read 
``Sec. 515.206(a)(3)''.
    B. Paragraph (c) is added to read as follows:


Sec. 515.545  Transactions related to information and informational 
materials.

* * * * *
    (c) Specific licenses may be issued on a case-by-case basis 
authorizing the travel-related transactions set forth in 
Sec. 515.560(c) for purposes related to the exportation, importation, 
or transmission of information or informational materials as defined in 
Sec. 515.332.
    20. Newly redesignated Sec. 515.550 is revised to read as follows:


Sec. 515.550  Certain vessel transactions authorized.

    Unless a vessel has otherwise engaged in transactions that would 
prohibit entry pursuant to Sec. 515.207, Sec. 515.207 shall not apply 
to a vessel that is:
    (a) Engaging in trade with Cuba authorized by licenses issued 
pursuant to Sec. 515.533 or Sec. 515.559; or
    (b) Engaging in trade with Cuba that is exempt from the 
prohibitions of this part (see Sec. 515.206).


Sec. 515.551  [Amended]

    21. Paragraph (a)(3) of Sec. 515.551 is amended by revising 
``Sec. 515.568'' to read ``Sec. 515.522''.


Sec. 515.556  [Removed and reserved]

    22. Section 515.556 is removed and reserved.
    23. Section 515.559 is amended by adding paragraph (b)(2) and a 
note to the section to read as follows:

[[Page 25814]]

Sec. 515.559  Transactions by U.S.-owned or controlled foreign firms 
with Cuba.

* * * * *
    (b) * * *
    (2) Travel-related transactions set forth in Sec. 515.560(c) and 
other transactions that are directly incident to marketing, sales 
negotiation, accompanied delivery, or servicing of exports that are 
consistent with the licensing policy under this section.
* * * * *
    Note to Sec. 515.559: Transactions by U.S.-owned or controlled 
foreign firms in connection with the exportation of information or 
informational materials or the donation of food to nongovernmental 
entities or individuals in Cuba are exempt from the prohibitions of 
this part. See Sec. 515.206. For the waiver of the prohibition 
contained in Sec. 515.207 on certain vessel transactions for vessels 
transporting shipments of goods, wares, or merchandise pursuant to 
this section, see Sec. 515.550.
    24. Section 515.560 is revised to read as follows:


Sec. 515.560  Travel-related transactions to, from, and within Cuba by 
persons subject to U.S. jurisdiction.

    (a) The travel-related transactions listed in paragraph (c) of this 
section may be authorized either by a general license or on a case-by-
case basis by a specific license for travel related to the following 
activities (see the referenced sections for general and specific 
licensing criteria):
    (1) Family visits (general and specific licenses) (see 
Sec. 515.561);
    (2) Official business of the U.S. government, foreign governments, 
and certain intergovernmental organizations (general license) (see 
Sec. 515.562);
    (3) Journalistic activity (general and specific licenses) (see 
Sec. 515.563);
    (4) Professional research (general and specific licenses) (see 
Sec. 515.564);
    (5) Educational activities (specific licenses) (see Sec. 515.565);
    (6) Religious activities (specific licenses) (see Sec. 515.566);
    (7) Public performances, clinics, workshops, athletic and other 
competitions, and exhibitions (general and specific licenses) (see 
Sec. 515.567);
    (8) Support for the Cuban people (specific licenses) (see 
Sec. 515.574);
    (9) Humanitarian projects (specific licenses) (see Sec. 515.575);
    (10) Activities of private foundations or research or educational 
institutes (specific licenses) (see Sec. 515.576);
    (11) Exportation, importation, or transmission of information or 
informational materials (specific licenses) (see Sec. 515.545); and
    (12) Certain export transactions that may be considered for 
authorization under existing Department of Commerce regulations and 
guidelines with respect to Cuba or engaged in by U.S.-owned or 
controlled foreign firms (specific licenses) (see Secs. 515.533 and 
515.559).
    (b) Travel-related transactions in connection with activities other 
than those referenced in paragraph (a) of this section may be 
authorized on a case-by-case basis by a specific license issued 
pursuant to Sec. 515.801.
    (c) Persons generally or specifically licensed under this part to 
engage in transactions in connection with travel to, from, and within 
Cuba may engage in the following transactions:
    (1) Transportation to and from Cuba. All transportation-related 
transactions ordinarily incident to travel to and from (not within) 
Cuba, provided no more than $500 may be remitted to Cuba directly or 
indirectly in any consecutive 12-month period for fees imposed by the 
Government of Cuba in conjunction with such travel unless otherwise 
authorized.
    (2) Living expenses in Cuba. All transactions ordinarily incident 
to travel anywhere within Cuba, including payment of living expenses 
and the acquisition in Cuba of goods for personal consumption there, 
provided that, unless otherwise authorized, the total for such expenses 
does not exceed the ``maximum per diem rate'' for Havana, Cuba in 
effect during the period that the travel takes place. The per diem rate 
is published in the State Department's ``Maximum Travel Per Diem 
Allowances for Foreign Areas,'' a supplement to section 925, Department 
of State Standardized Regulations (Government Civilians, Foreign 
Areas), available from the Government Printing Office, Superintendent 
of Documents, P.O. Box 371954, Pittsburgh, PA 15250-7954, or on the 
Internet at http://www.state.gov/www/perdiems/index.html.
    (3) Purchase in Cuba and importation into the United States of 
merchandise. The purchase in Cuba and importation as accompanied 
baggage into the United States of merchandise with a foreign market 
value not to exceed $100 per person, provided the merchandise is 
imported for personal use only. Such merchandise may not be resold. 
This authorization may be used only once every six consecutive months. 
As provided in Sec. 515.206(a), the purchase and importation of 
information or informational materials are exempt from all restrictions 
contained in this part.
    (4) Carrying remittances to Cuba. The carrying to Cuba of any 
remittances that the licensed traveler is authorized to remit pursuant 
to Sec. 515.570, provided that no more than $300 of remittances 
authorized by Sec. 515.570(a) or (b) is carried in any one trip, unless 
otherwise authorized. Those licensed travelers carrying either of the 
emigration remittances authorized pursuant to Sec. 515.570(c) must be 
able to produce the visa recipient's full name and date of birth and 
the number and date of issuance of the visa or other travel 
authorization issued. A licensed traveler to Cuba is only authorized to 
carry remittances that he or she is authorized to remit and may not 
carry remittances being made by other persons.
    (5) Processing certain financial instruments. All transactions 
incident to the processing and payment of checks, drafts, travelers' 
checks, and similar instruments negotiated in Cuba by any person 
authorized pursuant to this part to engage in financial transactions in 
Cuba. For purposes of this section, the authorized transactions may be 
conducted using currency, which is defined as money, cash, drafts, 
notes, travelers' checks, negotiable instruments, or scrip having a 
specified or readily determinable face value or worth, but which does 
not include gold or other precious metals in any form.
    Note to paragraph (c): The authorizations in paragraph (c) of 
this section do not apply to fully-hosted travelers because their 
travel-related transactions are not licensed or authorized pursuant 
to this part. See Sec. 515.420.
    (d) A Cuban national departing the United States may carry 
currency, as that term is defined in paragraph (c)(5) of this section, 
as follows:
    (1) The amount of any currency brought into the United States by 
the Cuban national and registered with the U.S. Customs Service upon 
entry;
    (2) Up to $300 in funds received as remittances by the Cuban 
national during his or her stay in the United States; and
    (3) Compensation earned by a Cuban national from a U.S. academic 
institution up to any amount that can be substantiated through payment 
receipts from such institution as authorized pursuant to 
Sec. 515.565(a)(2)(v).
    (e) The following transactions by persons generally or specifically 
licensed to engage in travel-related transactions to, from, and within 
Cuba are prohibited by Sec. 515.201 unless specifically authorized:
    (1) All transactions by persons subject to U.S. jurisdiction 
related to the utilization of charge cards, including but not limited 
to debit or credit cards, for expenditures in Cuba.
    (2) All transactions related to the processing and payment by 
persons subject to U.S. jurisdiction, such as charge card issuers or 
intermediary banks, of charge card instruments (e.g.,

[[Page 25815]]

vouchers, drafts, or sales receipts) for expenditures in Cuba. The 
issuer of a charge card, or a foreign charge card firm owned or 
controlled by persons subject to U.S. jurisdiction, is not authorized 
to deal with a Cuban enterprise, a Cuban national, or a third-country 
person, such as a franchisee, in connection with the extension of 
charge card services to any person in Cuba.
    (f) Persons traveling to Cuba fully hosted as described in 
Sec. 515.420 may not carry currency to pay for living expenses or the 
purchase of goods in Cuba except as specifically licensed pursuant to 
or exempted from the application of this part.
    (g) Nothing in this section authorizes transactions in connection 
with tourist travel to Cuba, nor does it authorize transactions in 
relation to any business travel, including making or agreeing to make 
any investment in Cuba, establishing or agreeing to establish any 
branch or agency in Cuba, or transferring or agreeing to transfer any 
property to Cuba, except transfers by or on behalf of individual or 
group travelers authorized pursuant to this part.
    25. Section 515.561 is added to read as follows:


Sec. 515.561  Persons visiting family members in Cuba.

    (a) General license. The travel-related transactions set forth in 
Sec. 515.560(c) are authorized in connection with travel to Cuba by 
persons and persons traveling with them who share a common dwelling as 
a family with them who are traveling to visit close relatives in Cuba 
in circumstances that demonstrate humanitarian need, provided that the 
authorization contained in this paragraph may be used only once in any 
12-month period. See Secs. 501.601 and 501.602 of this chapter for 
applicable recordkeeping and reporting requirements. Any additional 
transactions must be specifically licensed pursuant to paragraph (b) of 
this section.
    (b) Specific licenses. Specific licenses may be issued on a case-
by-case basis authorizing the travel-related transactions set forth in 
Sec. 515.560(c) in connection with travel to Cuba by persons, and 
persons traveling with them who share a common dwelling as a family 
with them, who seek to travel to visit close relatives in Cuba more 
than once in any consecutive 12-month period in cases involving 
humanitarian need.
    (c) For purposes of this section, the term close relative used with 
respect to any person means such person's spouse, child, grandchild, 
parent, grandparent, great grandparent, uncle, aunt, brother, sister, 
nephew, niece, first cousin, mother-in-law, father-in-law, son-in-law, 
daughter-in-law, sister-in-law, brother-in-law, or spouse, widow, or 
widower of any of the foregoing.
    26. New Sec. 515.562 is added to read as follows:


Sec. 515.562  Officials of the U.S. government, foreign governments, 
and certain intergovernmental organizations traveling to, from, and 
within Cuba on official business.

    The travel-related transactions set forth in Sec. 515.560(c) and 
such additional transactions as are directly incident to activities in 
their official capacities by persons who are officials of the United 
States Government, any foreign government, or any intergovernmental 
organization of which the United States is a member and who are 
traveling on the official business of their government or international 
organization are authorized.
    27. New Sec. 515.563 is added to read as follows:


Sec. 515.563  Journalistic activities in Cuba.

    (a) General license. The travel-related transactions set forth in 
Sec. 515.560(c) and such additional transactions as are directly 
incident to journalistic activities in Cuba by persons regularly 
employed as journalists by a news reporting organization or by persons 
regularly employed as supporting broadcast or technical personnel are 
authorized.
    Note to paragraph (a): See Secs. 501.601 and 501.602 of this 
chapter for applicable recordkeeping and reporting requirements. The 
exportation of equipment and other items to be used in journalistic 
activities may require separate licensing by the Department of 
Commerce.
    (b) Specific licenses. (1) Specific licenses may be issued on a 
case-by-case basis authorizing the travel-related transactions set 
forth in Sec. 515.560(c) and other transactions that are directly 
incident to doing research in Cuba for a free-lance article upon 
submission of an adequate written application including the following 
documentation:
    (i) A detailed itinerary and a detailed description of the proposed 
research; and
    (ii) A resume or similar document showing a record of publications.
    (2) To qualify for a specific license pursuant to this section, the 
itinerary for the proposed research in Cuba for a free-lance article 
must demonstrate that the research constitutes a full work schedule 
that could not be accomplished in a shorter period of time.
    (3) Specific licenses may be issued pursuant to this section 
authorizing transactions for multiple trips to Cuba over an extended 
period of time by applicants demonstrating a significant record of 
free-lance journalism.
    28. New Sec. 515.564 is added to read as follows:


Sec. 515.564  Professional research and professional meetings in Cuba.

    (a) General license. (1) The travel-related transactions set forth 
in Sec. 515.560(c) and such additional transactions that are directly 
incident to professional research by full-time professionals who travel 
to Cuba to conduct professional research in their professional areas 
are authorized, provided that:
    (i) The research is of a noncommercial, academic nature;
    (ii) The research comprises a full work schedule in Cuba;
    (iii) The research has a substantial likelihood of public 
dissemination; and
    (iv) The research does not fall within the categories of activities 
described in paragraph (c), (d), or (e) of this section.
    (2) The travel-related transactions set forth in Sec. 515.560(c) 
and such additional transactions as are directly incident to travel to 
Cuba by full-time professionals to attend professional meetings or 
conferences in Cuba organized by an international professional 
organization, institution, or association that regularly sponsors 
meetings or conferences in other countries are authorized, provided 
that:
    (i) The international professional organization, institution, or 
association is not headquartered in the United States unless that 
organization, institution, or association has been specifically 
licensed to sponsor the meeting in Cuba;
    (ii) The purpose of the meeting or conference is not the promotion 
of tourism in Cuba or other commercial activities involving Cuba that 
are inconsistent with this part; and
    (iii) The meeting or conference is not intended primarily for the 
purpose of fostering production of any biotechnological products.
    Note to paragraph (a): See Secs. 501.601 and 501.602 of this 
chapter for applicable recordkeeping and reporting requirements. 
Exportation of equipment and other items, including the transfer of 
technology or software to foreign persons (``deemed exportation'') 
and items not eligible for Department of Commerce GFT or BAG License 
Exceptions, 15 CFR 740.12 and 740.14, may require separate 
authorization by the Department of Commerce.
    (b) Specific licensing. Specific licenses may be issued on a case-
by-case basis authorizing the travel-related transactions set forth in 
Sec. 515.560(c) and other transactions that are directly

[[Page 25816]]

incident to professional research and professional meetings that do not 
qualify for the general license in paragraph (a) of this section. 
Specific licenses may be issued pursuant to this section authorizing 
transactions for multiple trips to Cuba over an extended period of time 
by applicants demonstrating a significant record of research. Specific 
licenses will not be issued for travel-related transactions for 
purposes of attendance at meetings or conferences in Cuba organized by 
the Cuban government where such meetings or conferences could be 
intended primarily for the purpose of fostering the production of any 
biotechnological products.
    (c) Categories of activities that do not qualify for the general 
license in paragraph (a) of this section and for which the specific 
licenses described in paragraph (b) of this section will not be issued 
include recreational travel; tourist travel; travel in pursuit of a 
hobby; research for personal satisfaction only; and any travel for an 
authorized professional 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 or attendance at 
professional meetings or conferences.
    (d) An entire group does not qualify for the general license in 
paragraph (a) of this section and will not be issued a specific license 
under paragraph (b) of this section merely because some members of the 
group could qualify individually for such licenses.
    Example 1 to paragraph (d): A musicologist travels to Cuba to do 
research on Cuban music pursuant to the general license for 
professional researchers set forth in paragraph (a) of this section. 
Others who are simply interested in music but who do not research 
music as part of their careers may not engage in travel-related 
transactions with the musicologist in reliance on this general 
license. For example, an art historian who plays in the same band 
with the musicologist would not qualify as a professional researcher 
of Cuban music for purposes of this general license.
    Example 2 to paragraph (d): A specific license issued pursuant 
to paragraph (b) of this section authorizing travel-related 
transactions by a fish biologist who travels to Cuba to engage in 
professional research does not authorize transactions by 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.
    (e) A person will not qualify as engaging in professional research 
merely because that person is a professional who plans to travel to 
Cuba.
    Example 1 to paragraph (e): 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 does not qualify for the general 
license in paragraph (a) of this section or for a specific license 
issued pursuant to paragraph (b) of this section.
    Example 2 to paragraph (e): A professional photographer who 
wishes to take photographs in Cuba that will become the basis for 
creating post cards, paintings, and other secondary products or that 
merely document the photographer's travel does not qualify for the 
general license in paragraph (a) of this section or for a specific 
license issued pursuant to paragraph (b) of this section.
    29. New Sec. 515.565 is added to read as follows:


Sec. 515.565  Educational activities.

    (a) Specific license for U.S. academic institutions--(1) Issuance; 
renewal. A specific license may be issued to an accredited U.S. 
academic institution authorizing the institution and its students and 
employees to engage, under the auspices of the institution, in 
educational activities involving transactions in which Cuba or a Cuban 
national has an interest. The application for the specific license must 
establish that the U.S. academic institution is accredited by an 
appropriate national or regional educational accrediting association. 
The specific license may be renewed after a period of two years to 
authorize the accredited U.S. academic institution and its students and 
employees to continue to engage in the transactions authorized under 
the institution's license.
    (2) Scope of transactions authorized under U.S. academic 
institution's specific license; documentation. Upon receipt of a 
specific license pursuant to paragraph (a)(1) of this section by the 
accredited U.S. academic institution, the institution and its students 
and employees are authorized to engage in the travel-related 
transactions set forth in Sec. 515.560(c) and such additional 
transactions as are directly incident to any of the categories of 
educational activities set forth in paragraphs (a)(2)(i) through 
(a)(2)(vii) of this section undertaken under the auspices of the 
specifically-licensed institution. Activities covered by this 
authorization are limited to the following:
    (i) Participation in a structured educational program by an 
undergraduate or graduate student or undergraduate or graduate student 
group as part of a course offered at an accredited U.S. college or 
university. A student planning to engage in such transactions in Cuba 
must carry a letter from the U.S. academic institution stating that the 
student is currently enrolled in an undergraduate or graduate degree 
program there and that the Cuba travel is part of a structured 
educational program of that institution and citing the number of the 
relevant U.S. academic institution's specific license.
    (ii) Noncommercial academic research in Cuba specifically related 
to Cuba by a person working to qualify academically as a professional 
(for example, research toward a graduate degree). A student planning to 
engage in such transactions in Cuba must carry a letter from the 
student's accredited U.S. academic institution stating that the 
individual is currently enrolled in a graduate degree program and that 
the Cuba research will be accepted for credit toward that degree and 
citing the number of the relevant U.S. academic institution's specific 
license.
    (iii) Participation in a formal course of study at a Cuban academic 
institution by an undergraduate or graduate student currently enrolled 
in a degree program at an accredited U.S. college or university, 
provided the formal course of study in Cuba will be accepted for credit 
toward the student's undergraduate or graduate degree at that U.S. 
college or university. A student planning to engage in such 
transactions in Cuba must carry with him or her a letter from the 
student's U.S. academic institution stating that the student is 
currently enrolled in an undergraduate or graduate degree program and 
that the Cuban study will be accepted for credit toward that degree and 
citing the number of the relevant U.S. academic institution's specific 
license.
    (iv) Teaching at a Cuban academic institution by an individual 
regularly employed in a teaching capacity at an accredited U.S. college 
or university, provided the teaching activities are related to an 
academic program at the Cuban institution. An individual planning to 
teach at a Cuban academic institution must obtain and carry a written 
letter from the individual's U.S. academic institution, citing the 
number of that institution's specific license and stating that the 
individual is regularly employed there in a teaching capacity.
    (v) Sponsorship, including the payment of a stipend or salary, of a 
Cuban scholar to teach or engage in other scholarly activity at a 
college or university in the United States (in addition to those 
transactions authorized by the general license contained in 
Sec. 515.571). Such earnings may be remitted to Cuba as provided in

[[Page 25817]]

Sec. 515.570, or carried on the person of the Cuban scholar returning 
to Cuba as provided in Sec. 515.560(d)(3).
    (vi) Educational exchanges sponsored by Cuban or U.S. secondary 
schools involving secondary school students' participation in a formal 
course of study or in a structured educational program offered by a 
secondary school or other academic institution and led by a teacher or 
other secondary school official. This authorization includes 
participation by a reasonable number of adult chaperones to accompany 
the secondary school student(s) to Cuba. A secondary school group 
planning to engage in such transactions in Cuba must carry a letter 
from the secondary school sponsoring the trip, citing the number of the 
school's specific license and listing the names of all persons 
traveling with the group.
    (vii) The organization of and preparation for transactions and 
activities described in paragraphs (a)(2)(i) through (a)(2)(vi) of this 
section by a full-time employee of a U.S. academic institution. An 
individual engaging in such transactions must carry a written letter 
from the individual's U.S. academic institution, citing the number of 
that institution's specific license and stating that the individual is 
regularly employed there.
    Note to paragraph (a): See Secs. 501.601 and 501.602 of this 
chapter for applicable recordkeeping and reporting requirements. 
Exportation of equipment and other items, including the transfer of 
technology or software to foreign persons (``deemed exportation''), 
and items not eligible for Department of Commerce GFT or BAG License 
Exceptions, 15 CFR 740.12 and 740.14, may require separate licensing 
from the Department of Commerce.
    (b) Specific license. Specific licenses may be issued on a case-by-
case basis authorizing the travel-related transactions set forth in 
Sec. 515.560(c) and other transactions that are directly incident to:
    (1) Educational activities described in paragraphs (a)(2)(i) 
through (a)(2)(iii) of this section not covered by a specific license 
issued pursuant to paragraph (a) of this section to an accredited U.S. 
academic institution; or
    (2) Educational exchanges not involving academic study pursuant to 
a degree program when those exchanges take place under the auspices of 
an organization that sponsors and organizes such programs to promote 
people-to-people contact.
    (c) Transactions related to activities that are primarily tourist-
oriented, including self-directed educational activities that are 
intended only for personal enrichment, are not authorized by this 
section.
    30. New Sec. 515.566 is added to read as follows:


Sec. 515.566  Religious activities in Cuba.

    (a) Specific license for U.S. religious organizations--(1) 
Issuance; renewal. A specific license may be issued to a religious 
organization located in the United States authorizing the organization 
and individuals and groups affiliated with the organization to engage, 
under the auspices of the organization, in religious activities 
involving transactions (including travel-related transactions) in which 
Cuba or a Cuban national has an interest. The application for the 
specific license must set forth examples of religious activities to be 
undertaken in Cuba. The religious organization's specific license may 
be renewed after a period of two years to authorize the organization 
and individuals and groups affiliated with the organization to continue 
to engage in the transactions authorized under the organization's 
license.
    (2) Scope of transactions authorized under U.S. religious 
organization's specific license; documentation. Upon receipt by the 
religious organization located in the United States of a specific 
license pursuant to paragraph (a)(1) of this section, the organization 
and individuals or groups affiliated with the organization are 
authorized to engage in the travel-related transactions set forth in 
Sec. 515.560(c) and such additional transactions as are directly 
incident to religious activities in Cuba under the auspices of the 
organization. Travel-related transactions pursuant to this 
authorization must be for the purpose of engaging, while in Cuba, in a 
full-time program of religious activities. Financial and material 
donations to Cuba or Cuban nationals are not authorized by this 
paragraph (a)(2). All individuals who engage in transactions in which 
Cuba or Cuban nationals have an interest (including travel-related 
transactions) pursuant to this paragraph (a)(2) must carry with them a 
letter from the specifically-licensed U.S. religious organization, 
citing the number of the organization's specific license and confirming 
that they are affiliated with the organization and are traveling to 
Cuba to engage in religious activities under the auspices of the 
organization.
    Note to paragraph (a): See Secs. 501.601 and 501.602 of this 
chapter for applicable recordkeeping and reporting requirements. 
Exportation of items to be used in Cuba may require separate 
licensing by the Department of Commerce.
    (b) Specific licenses. Specific licenses may be issued on a case-
by-case basis authorizing the travel-related transactions set forth in 
Sec. 515.560(c) and other transactions that are directly incident to 
religious activities not covered by a specific license issued pursuant 
to paragraph (a) of this section to a U.S. religious organization. 
Specific licenses may be issued pursuant to this section authorizing 
transactions for multiple trips over an extended period of time to 
engage in a full-time program of religious activities in Cuba.
    31. New Sec. 515.567 is added to read as follows:


Sec. 515.567  Public performances, clinics, workshops, athletic and 
other competitions, and exhibitions.

    (a) General license. The travel-related transactions set forth in 
Sec. 515.560(c) and such additional transactions as are directly 
incident to athletic competition by amateur or semi-professional 
athletes or amateur or semi-professional athletic teams traveling to 
participate in athletic competition held in Cuba are authorized, 
provided that:
    (1) The athletic competition in Cuba is held under the auspices of 
the international sports federation for the relevant sport;
    (2) The United States participants in the athletic competition are 
selected by the United States federation for the relevant sport; and
    (3) The competition is open for attendance, and in relevant 
situations participation, by the Cuban public.
    Note to paragraph (a): See Secs. 501.601 and 501.602 of this 
chapter for applicable recordkeeping and reporting requirements. 
Exportation of items to be used in Cuba may require separate 
licensing by the Department of Commerce.
    (b) Specific licenses. (1) Specific licenses, including for 
multiple trips to Cuba over an extended period of time, may be issued 
on a case-by-case basis authorizing the travel-related transactions set 
forth in Sec. 515.560(c) and other transactions that are directly 
incident to participation in a public performance, clinic, workshop, 
athletic or other competition, or exhibition in Cuba by participants in 
such activities, provided that:
    (i) The event is open for attendance, and in relevant situations 
participation, by the Cuban public;
    (ii) All profits from the event after costs are donated to an 
independent nongovernmental organization in Cuba or a U.S.-based 
charity, with the objective, to the extent possible, of promoting 
people-to-people contacts or otherwise benefitting the Cuban people.
    (2) In addition to those transactions authorized by Sec. 515.571, 
specific licenses may be issued on a case-by-case basis authorizing 
transactions incident to participation in a public

[[Page 25818]]

exhibition, performance, clinic, workshop, or competition in the United 
States by a Cuban national who enters the United States for the purpose 
of such participation on a visa or other travel authorization issued by 
the Department of State.
    (c) Specific licenses will not be issued pursuant to this section 
authorizing any:
    (1) Payment to Cuba or any national thereof for appearance fees or 
other such payments in connection with or resulting from any public 
exhibition, performance, clinic, workshop, or competition in the United 
States or in Cuba; or
    (2) Debit to a blocked account.


Sec. 515.568  [Reserved]

    32. Section 515.568 is added and reserved.
    33. Newly redesignated Sec. 515.569 is revised to read as follows:


Sec. 515.569  Foreign passengers' baggage.

    The importation of Cuban-origin goods, otherwise prohibited by this 
part, brought into the United States as baggage by any person arriving 
in the United States other than a citizen or resident of the United 
States is hereby authorized, notwithstanding the provisions of 
Sec. 515.803, provided that such goods are not in commercial quantities 
and are not imported for resale. This authorization does not apply to 
the importation of Cuban-origin alcohol or tobacco products.
    34. Section 515.570 is added to read as follows:


Sec. 515.570  Remittances to nationals of Cuba.

    (a) Family remittances authorized. (1) Persons subject to the 
jurisdiction of the United States who are 18 years of age or older are 
authorized to make remittances to a national of Cuba resident in Cuba 
or in the authorized trade territory (including any member of his or 
her household) who is a close relative of the remitter or of the 
remitter's spouse, for the support of the close relative provided that:
    (i) The remitter's total remittances pursuant to paragraphs (a) and 
(b) of this section to any one Cuban household, regardless of the 
number of close relatives comprising the household, do not exceed $300 
in any consecutive 3-month period; and
    (ii) The remittances are not made from a blocked source, except 
that remittances to Cuban households located in the authorized trade 
territory may come from a blocked account in a banking institution 
within the United States held in the name of, or in which the 
beneficial interest is held by, the payee or members of the payee's 
household.
    (2) A person authorized to make remittances under this paragraph 
(a) and who is authorized to engage in travel-related transactions 
relating to Cuba pursuant to a general license contained in or specific 
license issued pursuant to this part may carry no more than $300 in 
total remittances authorized in this paragraph (a), and only if the 
remittances will not exceed the maximum amount set forth in paragraph 
(a) of this section for any payee within the past 3 months. See 
Sec. 515.560(c)(4).
    (3) For purposes of this paragraph (a), the term close relative 
used with respect to any person means such person's spouse, child, 
grandchild, parent, grandparent, great grandparent, uncle, aunt, 
brother, sister, nephew, niece, first cousin, mother-in-law, father-in-
law, son-in-law, daughter-in-law, sister-in-law, brother-in-law, or the 
spouse, widow, or widower of any of the foregoing.
    Note to paragraph (a): The maximum amount set forth in paragraph 
(a) of this section does not apply to remittances to a Cuban 
individual who has been specifically licensed as an unblocked 
national pursuant to Sec. 515.505(b), as remittances to unblocked 
persons do not require separate authorization.
    (b) Individual-to-household remittances authorized. (1) Persons 
subject to the jurisdiction of the United States who are 18 years of 
age or older are authorized to make remittances to any Cuban household 
(including to any Cuban individual living alone) located in Cuba or in 
the authorized trade territory, provided that:
    (i) The remitter's total remittances pursuant to paragraphs (a) and 
(b) of this section to any one Cuban household do not exceed $300 in 
any consecutive 3-month period;
    (ii) No member of the payee's household is a senior-level Cuban 
government official or senior-level Cuban communist party official; and
    (iii) The remittances are not made from a blocked source, except 
that remittances to Cuban households located in the authorized trade 
territory may come from a blocked account in a banking institution 
within the United States held in the name of, or in which the 
beneficial interest is held by, the payee or members of the payee's 
household.
    (2) A person authorized to make remittances under this paragraph 
(b) and who is authorized to engage in travel-related transactions 
relating to Cuba pursuant to a general license contained in or specific 
license issued pursuant to this part may carry no more than $300 in 
total remittances authorized in paragraphs (a) and (b) of this section, 
and only if the remittances will not exceed the maximum amount set 
forth in paragraph (a) or (b) of this section for any payee within the 
past 3 months. See Sec. 515.560(c)(4).
    Note to paragraph (b): The maximum amount set forth in paragraph 
(b) of this section does not apply to remittances to a Cuban 
individual who has been specifically licensed as an unblocked 
national pursuant to Sec. 515.505(b), as remittances to unblocked 
persons do not require separate authorization.
    (c) Emigration-related remittances authorized. Persons subject to 
the jurisdiction of the United States are authorized to remit the 
following amounts:
    (1) Up to $500 on a one-time basis to any Cuban national for the 
purpose of covering the payee's preliminary expenses associated with 
emigrating from Cuba to the United States. This remittance may be sent 
through a licensed remittance forwarding service before the payee has 
received a valid visa issued by the State Department or other approved 
U.S.-immigration document, but may not be carried to Cuba by the 
remitter during this period. A person who is authorized to engage in 
travel-related transactions relating to Cuba pursuant to a general 
license contained in or specific license issued pursuant to this part 
may carry remittances pursuant to this paragraph (c)(1), provided the 
traveler can demonstrate each visa recipient's full name and date of 
birth and the number and date of issuance of the U.S. visa or other 
travel authorization issued. See Sec. 515.560(c)(4). Any amount 
remitted or carried to Cuba directly or indirectly in conjunction with 
the processing of a letter of invitation or similar document must be 
applied against the $500 limit; and
    (2) Up to an additional $500 on a one-time basis to any Cuban 
national for the purpose of enabling the payee to emigrate from Cuba to 
the United States, including for the purchase of airline tickets and 
payment of exit or third-country visa fees or other travel-related 
fees. Such remittances may be transferred only after the Cuban 
individual has received a valid visa issued by the State Department or 
other approved U.S. immigration documentation. Persons remitting 
amounts pursuant to this paragraph (c)(2) must provide to the 
remittance forwarder the visa recipient's full name and date of birth 
and the number and date of issuance of the U.S. visa or other travel 
authorization issued. A person who is authorized to engage in travel-

[[Page 25819]]

related transactions relating to Cuba pursuant to a general license 
contained in or specific license issued pursuant to this part may carry 
remittances pursuant to this paragraph (c)(2), provided the traveler 
can demonstrate each visa recipient's full name and date of birth and 
the number and date of issuance of the U.S. visa or other travel 
authorization issued. See Sec. 515.560(c)(4).
    (d) Specific licenses. Specific licenses may be issued on a case-
by-case basis authorizing the following:
    (1) Remittances by persons subject to U.S. jurisdiction to 
independent nongovernmental entities in Cuba;
    (2) Repatriation of earnings by a Cuban scholar pursuant to 
Sec. 515.565(a)(2)(v) in excess of the amount specified in paragraph 
(a) of this section;
    (3) Remittances by persons subject to U.S. jurisdiction from 
blocked accounts to Cuban households in the authorized trade territory 
in excess of the amount specified in paragraphs (a) and (b) of this 
section; or
    (4) Remittances by persons subject to U.S. jurisdiction to a person 
in Cuba, directly or indirectly, for transactions to facilitate non-
immigrant travel by an individual in Cuba to the United States under 
circumstances where humanitarian need is demonstrated, including 
illness or medical emergency.
    35. New Sec. 515.571 is added to read as follows:


Sec. 515.571  Certain transactions incident to travel to, from, and 
within the United States by Cuban nationals.

    (a) Except as provided in paragraph (c) of this section, the 
following transactions by or on behalf of a Cuban national who enters 
the United States from Cuba on a visa or other travel authorization 
issued by the State Department are authorized:
    (1) All transactions ordinarily incident to travel between the 
United States and Cuba, including the importation into the United 
States of accompanied baggage for personal use;
    (2) All transactions ordinarily incident to travel and maintenance 
within the United States, including the payment of living expenses and 
the acquisition of goods for personal consumption in the United States;
    (3) All transactions on behalf of aircraft or vessels incident to 
non-scheduled flights or voyages between the United States and Cuba, 
provided that the carrier used has a carrier service provider license 
issued pursuant to Sec. 515.572. This paragraph does not authorize the 
carriage of any merchandise into the United States except accompanied 
baggage; and
    (4) Normal banking transactions involving foreign currency drafts, 
travelers' checks, or other instruments negotiated incident to travel 
in the United States by any person under the authority of this section.
    (b) Payments and transfers of credit in the United States from 
blocked accounts in domestic banking institutions held in the name of a 
Cuban national who enters the United States on a visa or other travel 
authorization issued by the State Department to or upon the order of 
such Cuban national are authorized provided that:
    (1) Such payments and transfers of credit are made only for the 
living, traveling, and similar personal expenses in the United States 
of such Cuban national or his or her family;
    (2) The total of all such payments and transfers of credit made 
under this section from the accounts of such Cuban national do not 
exceed $250 in any one calendar month; and
    (3) No payment or transfer is made from a blocked account in which 
a specially designated national has an interest.
    (c) This section does not authorize any transfer of property to 
Cuba, or, except as otherwise authorized in paragraph (b) of this 
section, any debit to a blocked account.
    36. Newly redesignated Sec. 515.572 is amended as follows:
    A. The section heading is revised as set forth below.
    B. The word ``family'' is removed wherever it appears.
    C. Paragraph (c)(4)(ii) is amended by removing the words ``other 
than close relatives as defined in Sec. 515.563(b)'' and adding in 
their place the words ``ineligible to receive them under 
Sec. 515.570''.
    D. Paragraph (d)(2) is amended by removing ``Sec. 515.601'' and 
adding in its place ``Sec. 501.601 of this chapter'' and by removing 
``Sec. 515.602'' and adding in its place Sec. 501.602 of this 
chapter``.
    E. Paragraph (e)(2)(ii)(A) is amended by removing 
``Sec. 515.566(e)(3)'' and adding in its place ``paragraph (e)(3) of 
this section''.
    F. Paragraph (e)(2)(ii)(D) is amended by removing 
``Sec. 515.566(b)'' and adding in its place ``paragraph (b) of this 
section''.
    G. Paragraph (e)(3)(iii) introductory text is amended by removing 
``Sec. 515.566,'' and adding in its place ``this section,''.
    H. Paragraph (c)(4)(i) is revised to read as follows:


Sec. 515.572  Authorization of transactions incident to the provision 
of travel services, carrier services, and remittance forwarding 
services.

* * * * *
    (c) * * *
    (4)(i) In the case of applications for authorization to serve as 
travel or carrier service providers, a report on the forms and other 
procedures used to establish that each customer is in full compliance 
with U.S. law implementing the Cuban embargo and either qualifies for 
one of the general licenses contained in this part authorizing travel-
related transactions in connection with travel to Cuba, has received a 
specific license from the Office of Foreign Assets Control issued 
pursuant to this part, or is a fully-hosted traveler as described in 
Sec. 515.420. In the case of a customer traveling pursuant to a general 
license or claiming to be traveling fully hosted, the applicant must 
demonstrate that it requires each customer to attest, in a signed 
statement, to his or her qualification for the particular general 
license or fully-hosted status claimed. The statement must provide 
facts supporting the customer's belief that he or she qualifies for the 
general license or fully-hosted status claimed. In the case of a 
customer traveling under a specific license, the applicant must 
demonstrate that it requires the customer to furnish it with a copy of 
the license. The copy of the signed statement or the specific license 
must be maintained on file with the applicant.
* * * * *
    37. The introductory text of paragraph (a) of Sec. 515.574 is 
revised to read as follows:


Sec. 515.574  Support for the Cuban people.

    (a) Specific licenses may be issued on a case-by-case basis 
authorizing the travel-related transactions set forth in 
Sec. 515.560(c) and other transactions that are intended to provide 
support for the Cuban people including, but not limited to, the 
following:
* * * * *
    38. New Sec. 515.575 is added to subpart E to read as follows:


Sec. 515.575  Humanitarian projects.

    Specific licenses may be issued on a case-by-case basis authorizing 
the travel-related transactions set forth in Sec. 515.560(c) and such 
additional transactions as are directly incident to certain 
humanitarian projects in or related to Cuba not otherwise covered by 
this part that are designed to directly benefit the Cuban people. Such 
projects may include, but are not limited to, medical and health-
related projects, environmental projects, projects

[[Page 25820]]

involving non-formal educational training including adult literacy and 
vocational skills, community-based grass roots projects, projects 
suitable to the development of small-scale private enterprise, projects 
that are related to agricultural and rural development which promote 
independent activity, and projects involving the donation of goods to 
meet basic human needs as provided in 15 CFR 740.12(b) of the Export 
Administration Regulations, 15 CFR parts 730-774. Specific licenses may 
be issued authorizing transactions for multiple visits for the same 
project over an extended period of time by applicants demonstrating a 
significant record of overseas humanitarian projects.
    39. New Sec. 515.576 is added to subpart E to read as follows:


Sec. 515.576  Activities of private foundations or research or 
educational institutes.

    Specific licenses may be issued on a case-by-case basis authorizing 
the travel-related transactions set forth in Sec. 515.560(c) and such 
additional transactions as are directly incident to activities by 
private foundations or research or educational institutes that have an 
established interest in international relations to collect information 
related to Cuba for noncommercial purposes, not otherwise covered by 
the general license for professional research contained in Sec. 515.564 
or more properly issued under Sec. 515.575, relating to humanitarian 
projects. Specific licenses may be issued pursuant to this section 
authorizing transactions for multiple trips to Cuba for the same 
project over an extended period of time.

    Dated: April 30, 1999.
R. Richard Newcomb,
Director, Office of Foreign Assets Control.
    Approved: May 5, 1999.
Elisabeth A. Bresee,
Assistant Secretary (Enforcement), Department of the Treasury.
[FR Doc. 99-12083 Filed 5-10-99; 3:39 pm]
BILLING CODE 4810-25-F