[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:
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Bulletin Board the day of publication in the Federal Register. By
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For Internet access, the address for use with the World Wide Web (Home
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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
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New Section Subject Source
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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
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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
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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