[Federal Register Volume 69, Number 115 (Wednesday, June 16, 2004)]
[Rules and Regulations]
[Pages 33768-33774]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-13630]



[[Page 33767]]

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Part III





Department of the Treasury





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Office of Foreign Assets Control



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31 CFR Part 515



Cuban Assets Control Regulations; Interim Final Rule



Revocation of OFAC Specific Licenses To Engage in Travel-Related 
Transactions Incident to Visiting Close Relatives in Cuba; Notice

  Federal Register / Vol. 69, No. 115 / Wednesday, June 16, 2004 / 
Rules and Regulations  

[[Page 33768]]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 515


Cuban Assets Control Regulations

AGENCY: Office of Foreign Assets Control, Treasury

ACTION: Interim final rule.

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SUMMARY: The Office of Foreign Assets Control of the U.S. Department of 
the Treasury is amending the Cuban Assets Control Regulations, part 515 
of chapter V of 31 CFR, to implement the President's May 6, 2004 
direction with respect to certain recommendations in the May 2004 
Report to the President from the Commission for Assistance to a Free 
Cuba. This rule also contains additional substantive amendments 
consistent with the President's policy as well as technical and 
clarifying amendments.

DATES: Effective Date: June 30, 2004.
    Comments: Written comments must be received no later than August 
16, 2004.

ADDRESSES: Comments may be submitted in the English language by any of 
the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Agency Web site: http://www.treas.gov/offices/enforcement/ofac/comment.html.
     Fax: Chief of Records, 202/622-1657.
     Mail: Chief of Records, ATTN: Request for Comments, Office 
of Foreign Assets Control, Department of the Treasury, 1500 
Pennsylvania Avenue, NW., Washington, DC 20220.
    Instructions: All submissions received must include ``Office of 
Foreign Assets Control, Treasury'' and the FR Doc. number that appears 
at the end of this document. Comments received will be posted without 
change to http://www.treas.gov/ofac, including any personal information 
provided. For detailed instructions on submitting comments and 
additional information on the rulemaking process, see the ``Public 
Participation'' subsection of the SUPPLEMENTARY INFORMATION section of 
this document. To read background documents or comments received, go to 
http://www.treas.gov/ofac.

FOR FURTHER INFORMATION CONTACT: Chief of Licensing, tel.: 202/622-2480 
or Chief of Policy Planning and Program Management, tel.: 202/622-4855, 
Office of Foreign Assets Control, or Chief Counsel, tel.: 202/622-2410, 
Office of Chief Counsel (Foreign Assets Control), Department of the 
Treasury, Washington, DC 20220 (not toll free numbers).

SUPPLEMENTARY INFORMATION:

Electronic and Facsimile Availability

    This file is available for download without charge in ASCII and 
Adobe Acrobat readable (*.PDF) formats at GPO Access. GPO Access 
supports HTTP, FTP, and Telnet at fedbbs.access.gpo.gov. It may also be 
accessed by modem dialup at 202/512-1387 followed by typing ``/GO/
FAC.'' Paper copies of this document can be obtained by calling the 
Government Printing Office at 202/512-1530. This document and 
additional information concerning the programs of the Office of Foreign 
Assets Control are available for downloading from the Office's Internet 
Home Page: http://www.treas.gov/ofac, or via FTP at ofacftp.treas.gov. 
Facsimiles of information are available 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 October 10, 2003, the President announced the establishment of a 
Commission for Assistance to a Free Cuba (the ``Commission''), an 
interagency commission tasked with identifying ways to hasten Cuba's 
transition to a free and open society and identifying U.S. Government 
programs that could assist the Cuban people during such a transition. 
On May 1, 2004, the Commission delivered its Report to the President, 
recommending, among other things, a number of proposed changes to the 
U.S. sanctions with respect to Cuba. On May 6, 2004, the President 
directed the implementation of certain of the Report's recommendations. 
In this interim final rule, the Office of Foreign Assets Control 
(``OFAC'') is amending the Cuban Assets Control Regulations, 31 CFR 
part 515 (the ``CACR''), to implement these recommendations, to make 
additional changes consistent with the President's policy with respect 
to Cuba, and to make certain technical and clarifying changes.
    Fully-hosted travel. Section 515.420, the note to paragraph (c) and 
paragraph (f) of Sec.  515.560, and paragraph (c)(4)(i) of Sec.  
515.572 are amended to remove discussion of and references to fully-
hosted travel and the presumption that travelers to Cuba pay expenses 
for Cuba travel-related transactions. The term ``fully-hosted travel'' 
refers to travel to, from, or within Cuba for which all costs and fees 
either are paid for by a third-country national who is not subject to 
U.S. jurisdiction or are covered or waived by Cuba or a national of 
Cuba. The term was first introduced into the CACR on July 22, 1982, in 
Sec.  515.560 of the ``Licenses, Authorizations, and Statements of 
Licensing Policy'' subpart. See 47 FR 32060. Paragraph (j) of Sec.  
515.560 provided that all transactions incident to fully-hosted travel 
were authorized. On May 13, 1999, OFAC removed this provision from 
Sec.  515.560, amended it, and placed it in a new Sec.  515.420, which 
is in the ``Interpretations'' subpart of the CACR. See 64 FR 24808.
    In the years since the May 13, 1999 amendments, it has been found 
that persons who claimed their travel was fully-hosted in fact 
routinely engaged in prohibited money transactions (e.g., payment of 
entry and exit and docking fees). It has also been determined that even 
a person who accepts goods or services in Cuba without paying for them 
is in fact engaging in a prohibited dealing in property in which Cuba 
or a Cuban national has an interest. Therefore, language regarding 
fully-hosted travel is removed from the CACR and any authorization of 
fully-hosted travel is thereby eliminated. Amended Sec.  515.420 now 
explains that the prohibition in Sec.  515.201(b)(1) on dealing in 
property includes a prohibition on the receipt of goods or services in 
Cuba when those goods or services are provided free-of-charge, whether 
received as a gift from the Government of Cuba, a national of Cuba, or 
a third-country national, unless otherwise authorized by an OFAC 
general or specific license. See, e.g., Sec.  515.560(a) of the CACR. 
Amended Sec.  515.420 also explains that payment for air travel to Cuba 
on a third-country carrier, which involves property in which Cuba has 
an interest (for example, because the carrier will pass a portion of 
the payment on to Cuba), is now prohibited unless the travel is 
pursuant to an OFAC general or specific license.
    Along with the references to fully-hosted travel, the companion 
language in Sec.  515.420, which states that any person who travels to 
Cuba without OFAC authorization is presumed to have engaged in 
prohibited travel-related transactions there, is also removed. 
Notwithstanding the removal of this language, it is OFAC's position 
that the receipt of services or other dealings in property in which 
Cuba has an interest, such as a stay at a Cuban hotel or the purchase 
of food in Cuba, can be inferred from evidence of multi-day travel in 
Cuba.

[[Page 33769]]

    Importation of Cuban merchandise. Paragraph (c)(3) of Sec.  515.560 
is amended to eliminate the general license authorizing licensed 
travelers to Cuba to purchase in Cuba and return to the United States 
with up to $100 worth of Cuban merchandise for personal consumption. 
The amended paragraph (c) now explains that, with the exception noted 
below, no merchandise may be purchased or otherwise acquired in Cuba 
and then brought back to the United States. OFAC has added a note to 
paragraph (c) explaining that this rule does not apply to the purchase 
in Cuba and importation into the United States of informational 
materials, which continue to be exempt from the prohibitions of the 
CACR, as described in Sec.  515.206.
    Exportation of accompanied baggage. Former paragraph (f) of Sec.  
515.560, which discussed the carrying of currency by fully-hosted 
travelers, is replaced with a new paragraph (f) limiting the amount of 
accompanied baggage carried by authorized travelers to Cuba to 44 
pounds per traveler, unless a higher amount is authorized by the Bureau 
of Industry and Security of the Department of Commerce or, for 
exportations of non-U.S. origin accompanied baggage from third 
countries to Cuba, by a specific license from OFAC.
    Travel to visit relatives in Cuba. Sections 515.560 and 515.561 are 
amended to make a number of changes to the rules regarding travel-
related transactions incident to visiting relatives in Cuba.
    Prior to these amendments, a person with a Cuban national close 
relative (defined to include second cousins) in Cuba could engage in 
travel-related transactions incident to visiting that relative once 
every 12 months under a general license and more often pursuant to 
specific licenses if requested. There was no stated limit to the 
duration of the first visit, and the traveler could spend up to the 
State Department per diem (currently $167) for living expenses in Cuba 
plus any additional funds needed for transactions that were directly 
incident to visiting that relative.
    These amendments narrow the category of relatives who can be 
visited in Cuba. The definition of ``close relative'' set forth in 
former paragraph (d) of Sec.  515.561, is replaced by the term ``member 
of a person's immediate family,'' which is defined in new paragraph 
(c). Under the new rule, a member of a person's immediate family is 
defined as a spouse, child, grandchild, parent, grandparent, or sibling 
of that person or that person's spouse, as well as any spouse, widow, 
or widower of any of the foregoing. Relevant portions of Sec.  515.561 
also are amended to eliminate the policy of authorizing those who share 
a common dwelling as a family with the traveler to accompany the 
traveler, unless they are themselves members of the immediate family of 
the person to be visited.
    The once-per-twelve-months general license contained in former 
paragraph (a) of Sec.  515.561 is eliminated. In its place, new 
paragraph (a) states that OFAC will issue specific licenses authorizing 
travel-related transactions incident to visits to members of a person's 
immediate family who are nationals of Cuba once per three-year period 
and for no more than 14 days. A person subject to U.S. jurisdiction who 
wishes to engage in travel-related transactions to visit a member of 
his or her immediate family who is a national of Cuba will need to 
request and receive specific permission from OFAC before engaging in 
those transactions. For those who emigrated to the United States from 
Cuba and have not since that time visited a family member in Cuba, the 
three-year period will be counted from the date they left Cuba. For all 
others, the three year period will be counted from the date they last 
left Cuba pursuant to the pre-existing family visit general license or, 
if they traveled under a family visit specific license, the date that 
license was issued. Former paragraph (b), under which OFAC issued 
specific licenses for additional visits, is eliminated. No additional 
visits will be authorized.
    Former paragraph (c) of Sec.  515.561 stated a different rule for 
travelers wishing to visit relatives who are not nationals of Cuba but 
who instead are in Cuba pursuant to an OFAC authorization (such as a 
student who is in Cuba under her university's educational activities 
license). This rule has been moved to paragraph (b) and modified to 
provide for the issuance of a specific license to visit a member of a 
person's immediate family in exigent circumstances provided the person 
to be visited is in Cuba pursuant to an OFAC authorization, the 
particular exigency has been reported to the U.S. Interests Section in 
Havana, and issuance of the license would support the mission of the 
U.S. Interests Section in Havana. Licenses would be issued under this 
paragraph, after consultation with the Department of State, in true 
emergent situations, such as serious illness accompanied by an 
inability to travel, and in order to support services normally provided 
in such circumstances by the U.S. Interests Section in Havana.
    A number of individuals have outstanding specific licenses that 
were issued pursuant to former Sec.  515.561(b) and (c). Those licenses 
will remain valid only until June 30, 2004, after which they are 
revoked. Accordingly, individuals who have such specific licenses may 
not use them to engage in any Cuba travel-related transaction occurring 
on or after June 30, 2004.
    These amendments also reduce the amount of money travelers visiting 
members of their immediate family may spend for their living expenses 
in Cuba. The new limit, set forth in amended paragraph (c)(2) of Sec.  
515.560, is $50 per day plus up to an additional $50 per trip, if 
needed, to pay for transportation-related expenses in Cuba that exceed 
the $50 per day limit. For example, a traveler whose five-day trip to 
visit her father in Camaguey includes roundtrip ground transportation 
between Havana and Camaguey may expend $50 per day for her living 
expenses in Cuba plus up to an additional $50, if needed, to pay for 
the costs of transportation between Havana and Camaguey, for a total of 
$300 of in-Cuba costs (airfare to and from Cuba is not included in this 
limit). The per diem amount for all other categories of OFAC-authorized 
travel-related transactions in Cuba remains unchanged.
    Attendance at certain professional meetings in Cuba. A note is 
added to paragraph (a)(1) of Sec.  515.564 to clarify that the general 
license in paragraph (a) authorizing travel-related transactions 
incident to certain professional research in Cuba does not extend to 
transactions incident to attendance at professional meetings or 
conferences in Cuba. Attendance at certain professional meetings and 
conferences in Cuba already is addressed by a separate general license 
set forth in paragraph (a)(2). To the extent a professional researcher 
believes that attendance at a particular meeting or conference in Cuba 
is important to his or her research and the meeting or conference does 
not qualify under the general license set forth in paragraph (a)(2), 
the researcher may request a specific license from OFAC under paragraph 
(b).
    Educational activities in Cuba. OFAC is amending Sec.  515.565 to 
reflect new policy with respect to specific licensing of certain 
educational activities in Cuba. These amendments restrict the 
availability under paragraph (a) of specific licenses to institutions 
to undergraduate and graduate institutions. Accordingly, former 
paragraph (a)(2)(vi), which covered certain activities by secondary 
schools, has been eliminated. The duration of

[[Page 33770]]

these institutional licenses is shortened from two years to one year.
    Paragraph (a) of Sec.  515.565 is further amended by adding a 
requirement that any students who use an institution's license must be 
enrolled in an undergraduate or graduate degree program at that 
licensed institution. Students may no longer engage in Cuba travel-
related transactions under the license of an educational institution 
other than their own even if their own institution will accept the 
licensed institution's program for credit toward the student's degree. 
Paragraph (a) also is amended to clarify that employees who travel 
under an institution's license must be full-time permanent employees of 
the licensed institution. Temporary employees and contractors do not 
qualify as full-time permanent employees of an institution.
    Three of the six educational activities listed in paragraph (a) of 
Sec.  515.565 that are available to licensed educational institutions 
and their students and staff are subject to a new requirement that 
those educational activities in Cuba be no shorter than 10 weeks. The 
three affected activities are: structured educational programs in Cuba 
offered as part of a course at the licensed institution; formal courses 
of study at a Cuban academic institution; and teaching at a Cuban 
academic institution. The remaining three educational activities may 
still be engaged in for a period of less than 10 weeks. These 
activities are: graduate research in Cuba; sponsorship of a Cuban 
national to teach or engage in other scholarly activities in the United 
States; and organization of and preparation for licensed educational 
activities. OFAC is also amending the requirements in paragraph (a) 
with respect to letters from the licensed institution that must be 
carried by each authorized traveler.
    Some current holders of educational institution licenses may have 
already planned Cuba travel-related activities that would not be 
authorized under amended paragraph (a) of Sec.  515.565. Those licensed 
institutions that, prior to the effective date of this Notice, have 
already planned Cuba trips that will not meet the new requirements may 
still engage in all transactions incident to such trips provided that 
the trips and all associated transactions are completed by August 15, 
2004.
    Paragraph (b) of Sec.  515.565 is amended to clarify that its 
statement of specific licensing policy applies only to individuals 
seeking to engage in certain educational activities in Cuba if their 
educational institution does not have an institutional license under 
paragraph (a). The licensing policies set forth in paragraphs (a) and 
(b) are not available to individuals or entities that purport to 
arrange, facilitate, or coordinate educational programs in Cuba for 
U.S. academic institutions.
    Participation in international sports federation competitions; 
clinics and workshops licensing policy. OFAC is eliminating the general 
license set forth in paragraph (a) of Sec.  515.567 for travel-related 
transactions incident to participation in amateur and semi-professional 
athletic competitions that take place in Cuba under the auspices of an 
international sports federation. In its place, revised paragraph (a) 
states a specific licensing policy under which OFAC will authorize 
those same activities on a case-by-case basis. OFAC also in amending 
paragraph (b) of the same section to eliminate the policy of 
specifically licensing travel-related transactions incident to 
participation in clinics and workshops, whether sports-related or 
otherwise, in Cuba.
    Quarterly remittances to nationals of Cuba. OFAC is amending the 
general license in paragraph (a) of Sec.  515.570 to eliminate the 
authorization of quarterly $300 remittances sent from any person 
subject to U.S. jurisdiction who is 18 years of age or older to any 
household of a national of Cuba. The amended general license authorizes 
such remittances only when they are sent to members of the remitter's 
immediate family. The term ``member of the remitter's immediate 
family'' is defined to include only a spouse, child, grandchild, 
parent, grandparent, or sibling of the remitter or that remitter's 
spouse, as well as any spouse, widow, or widower of any of the 
foregoing. Paragraph (a) is further amended to provide that the 
quarterly $300 remittance cannot be remitted to certain government 
officials and certain members of the Cuban Communist Party.
    Paragraph (c)(4)(i) of Sec.  515.560 is also amended to reduce the 
total amount of quarterly $300 remittances that an authorized traveler 
may carry to Cuba from $3,000 to $300.
    NGO remittances to Cuba. Paragraph (d)(1) of Sec.  515.570 is 
revised to clarify the specific licensing policy of authorizing 
remittances from nongovernmental organizations and individuals subject 
to U.S. jurisdiction to Cuban pro-democracy groups, independent civil 
society groups, and religious organizations as well as to individual 
members of such Cuban groups and organizations.
    Remittance-related transactions by banks and other depository 
institutions. Paragraph (a)(3) of Sec.  515.572 is amended to eliminate 
the general license authorizing depository institutions to act as 
forwarders for the quarterly family household remittances or 
emigration-related remittances authorized in paragraphs (a), (b), and 
(c) of Sec.  515.570. Depository institutions, as defined in Sec.  
515.333, are now required to apply to OFAC and receive specific 
authorization as remittance forwarders before providing such services. 
Depository institutions continue to be authorized by general license, 
however, to provide services related to other authorized financial 
transactions. For example, a banking institution does not need separate 
authorization from OFAC to transfer to Cuba funds covered by a specific 
license allowing overflight payments or remittances other than 
quarterly family or emigration-related remittances.
    Technical and conforming amendments. OFAC is making a number of 
technical and conforming amendments to various sections of the CACR to 
amend wording, cross-references, and paragraph structure.

Public Participation

    Because the Regulations involve a foreign affairs function, the 
provisions of Executive Order 12866 and 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. However, because of the importance of 
the issues addressed in these regulations, this rule is being issued in 
interim form and comments will be considered in the development of 
final regulations. Accordingly, the Department encourages interested 
persons who wish to comment to do so at the earliest possible time to 
permit the fullest consideration of their views. Comments may address 
the impact of the amendments on the submitter's activities, whether of 
a commercial, non-commercial or humanitarian nature, as well as changes 
that would improve the clarity and organization of the CACR. All 
comments must be submitted in the English language.
    The period for submission of comments will close August 16, 2004. 
The Department will consider all comments postmarked before the close 
of the comment period. Comments received after the end of the comment 
period will be considered if possible, but their consideration cannot 
be assured. The Department will not accept public comments accompanied 
by a request that a part or all of the submission be treated 
confidentially because of its business proprietary

[[Page 33771]]

nature or for any other reason. The Department will return such 
submission to the originator without considering them in the 
development of final regulations. In the interest of accuracy and 
completeness, the Department requires comments in written form.
    All public comments on these Regulations will be a matter of public 
record. Copies of the public record concerning these Regulations will 
be made available not sooner than September 14, 2004, and will be 
obtainable from OFAC's Web site (http://www.treas.gov/ofac). If that 
service is unavailable, written requests for copies may be sent to: 
Office of Foreign Assets Control, U.S. Department of the Treasury, 1500 
Pennsylvania Ave., NW., Washington, DC 20220, Attn: Chief, Records 
Division.
    Because no notice of proposed rulemaking is required for this rule, 
the Regulatory Flexibility Act (5 U.S.C. 601-612) does not apply.

Paperwork Reduction Act

    The collections of information related to the CACR 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 previously 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 collection of information displays 
a valid control number.

List of Subjects in 31 CFR Part 515

    Administrative practice and procedure, Banks, Banking, Blocking of 
assets, Cuba, Currency, Foreign trade, Imports, Reporting and 
recordkeeping requirements, Securities, Travel restrictions.


0
For the reasons set forth in the preamble, part 515 of 31 CFR chapter V 
is amended as follows:
0
1. The authority citation for 31 CFR part 515 continues to read as 
follows:

    Authority: 18 U.S.C. 2332d; 22 U.S.C. 2370(a), 6001-6010; 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. 106-387, 114 Stat. 1549; E.O. 9193, 7 
FR 5205, 3 CFR, 1938-1943 Comp., p. 1147; E.O. 9989, 13 FR 4891, 3 
CFR, 1943-1948 Comp., p. 748; Proc. 3447, 27 FR 1085, 3 CFR, 1959-
1963 Comp., p. 157; E.O. 12854, 58 FR 36587, 3 CFR, 1993 Comp., p. 
614.

Subpart D--Interpretations

0
1. Revise Sec.  515.420 to read as follows:


Sec.  515.420  Travel to Cuba.

    The prohibition on dealing in property in which Cuba or a Cuban 
national has an interest set forth in Sec.  515.201(b)(1) includes a 
prohibition on the receipt of goods or services in Cuba, even if 
provided free-of-charge by the Government of Cuba or a national of Cuba 
or paid for by a third-country national who is not subject to U.S. 
jurisdiction. The prohibition set forth in Sec.  515.201(b)(1) also 
prohibits payment for air travel to Cuba on a third-country carrier 
unless the travel is pursuant to an OFAC general or specific license.

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

0
2. Amend Sec.  515.560 by removing the note to paragraph (c) and 
revising paragraphs (a) introductory text, (a)(1), (a)(7), (c) 
introductory text, (c)(2), (c)(3), (c)(4) introductory text, (c)(4)(i), 
and (f) 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 the applicable general and 
specific licensing criteria):
    (1) Visits to members of a person's immediate family (specific 
licenses) (see Sec.  515.561);
* * * * *
    (7) Public performances, athletic and other competitions, and 
exhibitions (specific licenses) (see Sec.  515.567);
* * * * *
    (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:
* * * * *
    (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, 
are authorized, provided that, unless otherwise authorized, the total 
for such expenses does not exceed:
    (i) For visits to members of a person's immediate family pursuant 
to Sec.  515.561, $50 per day plus up to an additional $50 per trip, if 
needed, to cover within-Cuba transportation-related expenses.
    (ii) For all other authorized activities, the ``maximum per diem 
rate'' for Havana, Cuba, in effect during the period that the travel 
takes place. The maximum 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), which is available 
from the Government Printing Office, Superintendent of Documents, P.O. 
Box 371945, Pittsburgh, PA 15250-7954 and on the Internet at http://www.state.gov/m/a/als/prdm.
    (3) Importation of Cuban merchandise prohibited. Nothing in this 
section authorizes the importation into the United States of any 
merchandise purchased or otherwise acquired in Cuba, including but not 
limited to any importation of such merchandise as accompanied baggage. 
The importation of Cuban-origin information and informational materials 
is exempt from the prohibitions of this part, as described in Sec.  
515.206.
    (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 is authorized, provided that:
    (i) The total of all family household remittances authorized by 
Sec.  515.570(a) does not exceed $300, and
* * * * *
    (f) Carrying accompanied baggage to Cuba. The carrying to Cuba of 
accompanied baggage, as described in 15 CFR 740.14, provided that no 
more than 44 pounds of accompanied baggage per traveler may be carried 
unless otherwise authorized by the Bureau of Industry and Security of 
the Department of Commerce or, for exportations of non-U.S. origin 
accompanied baggage from third countries to Cuba, by a specific license 
from OFAC.
* * * * *

0
3. Revise Sec.  515.561 to read as follows:


Sec.  515.561  Persons visiting members of their immediate family in 
Cuba.

    (a) Visiting a family member who is a national of Cuba. Specific 
licenses may be issued on a case-by-case basis to persons subject to 
U.S. jurisdiction to engage in the travel-related transactions set 
forth in Sec.  515.560(c) for the purpose of visiting a member of the 
person's immediate family who is a national of Cuba, as that term is 
defined in Sec.  515.302 of this part, in Cuba for a period not to 
exceed 14 days in duration, provided it has been at least three years 
since the most recent of the following three dates:
    (1) If the applicant emigrated from Cuba, the date of emigration;
    (2) The date the applicant left Cuba after the applicant's most 
recent trip to

[[Page 33772]]

visit family there pursuant to a general license from OFAC;
    (3) The date of issuance of the applicant's most recent specific 
license to visit family in Cuba.
    (b) Visiting a family member who is not a national of Cuba. 
Specific licenses may be issued on a case-by-case basis authorizing 
persons subject to U.S. jurisdiction to engage in the travel-related 
transactions set forth in Sec.  515.560(c) and additional travel-
related transactions that are directly incident to the purpose of 
visiting a member of the person's immediate family who is not a 
national of Cuba, as that term is defined in Sec.  515.302 of this 
part, in Cuba in exigent circumstances, provided the person to be 
visited is in Cuba pursuant to an OFAC authorization, the particular 
exigency has been reported to the U.S. Interests Section in Havana, and 
issuance of the license would support the mission of the U.S. Interests 
Section in Havana.
    (c) For the purpose of this section, the term ``member of a 
person's immediate family'' means any spouse, child, grandchild, 
parent, grandparent, or sibling of that person or that person's spouse, 
as well as any spouse, widow, or widower of any of the foregoing.
0
4. Amend Sec.  515.564 by adding a note to paragraph (a)(1) to read as 
follows:


Sec.  515.564  Professional research and professional meetings in Cuba.

* * * * *

    Note to paragraph (a)(1): This general license does not 
authorize as professional research any travel-related transactions 
incident to attendance at professional meetings or conferences. Such 
transactions must either qualify under the general license set forth 
in paragraph (a)(2) of this section or be the subject of a request 
for a specific license under paragraph (b) of this section.



0
5. Amend Sec.  515.565 by revising paragraphs (a) and (b) to read as 
follows:


Sec.  515.565  Educational activities.

    (a) Specific institutional licenses. Specific licenses for up to 
one year in duration may be issued to an accredited U.S. undergraduate 
or graduate degree-granting academic institution authorizing the 
institution, its students enrolled in an undergraduate or graduate 
degree program at the institution, and its full-time permanent 
employees to engage, under the auspices of the institution, in the 
travel-related transactions set forth in Sec.  515.560(c) and such 
additional transactions that are directly incident to:
    (1) Participation in a structured educational program in Cuba as 
part of a course offered at the licensed institution, provided the 
program includes a full term, and in no instance includes fewer than 10 
weeks, of study in Cuba. An individual planning to engage in such 
transactions must carry a letter from the licensed institution stating 
that the individual is a student currently enrolled in an undergraduate 
or graduate degree program at the institution or is a full-time 
permanent employee of the institution, stating that the Cuba-related 
travel is part of a structured educational program of the institution 
that will be no shorter than 10 weeks in duration, and citing the 
number of the institution's license;
    (2) Noncommercial academic research in Cuba specifically related to 
Cuba and for the purpose of obtaining a graduate degree. A student 
planning to engage in such transactions must carry a letter from the 
licensed institution stating that the individual is a student currently 
enrolled in a graduate degree program at the institution, stating that 
the research in Cuba will be accepted for credit toward that degree, 
and citing the number of the institution's license;
    (3) Participation in a formal course of study at a Cuban academic 
institution, provided the formal course of study in Cuba will be 
accepted for credit toward the student's undergraduate or graduate 
degree at the licensed U.S. institution and provided the course of 
study is no shorter than 10 weeks in duration. An individual planning 
to engage in such transactions must carry a letter from the licensed 
U.S. institution stating that the individual is a student currently 
enrolled in an undergraduate or graduate degree program at the U.S. 
institution, stating that the study in Cuba will be accepted for credit 
toward that degree and will be no shorter than 10 weeks in duration, 
and citing the number of the U.S. institution's license;
    (4) Teaching at a Cuban academic institution by an individual 
regularly employed in a teaching capacity at the licensed institution, 
provided the teaching activities are related to an academic program at 
the Cuban institution and provided that the duration of the teaching 
will be no shorter than 10 weeks. An individual planning to engage in 
such transactions must carry a written letter from the licensed U.S. 
institution stating that the individual is a full-time permanent 
employee regularly employed in a teaching capacity at the U.S. 
institution and citing the number of the U.S. institution's license;
    (5) Sponsorship, including the payment of a stipend or salary, of a 
Cuban scholar to teach or engage in other scholarly activity at the 
licensed institution (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 Sec.  515.570 or carried on the person 
of the Cuban scholar returning to Cuba as provided in Sec.  
515.560(d)(3); or
    (6) The organization of and preparation for activities described in 
paragraphs (a)(1) through (a)(5) of this section by a full-time 
permanent employee of the licensed institution. An individual engaging 
in such transactions must carry a written letter from the licensed 
institution stating that the individual is a full-time permanent 
employee of that institution and citing the number of the institution's 
license.

    Note to paragraph (a): See Sec. Sec.  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''), may require separate authorization from the 
Department of Commerce.

    (b) Other specific licenses. Specific licenses may be issued to 
individuals on a case-by-case basis authorizing the travel-related 
transactions set forth in Sec.  515.560(c) and other transactions 
directly incident to the educational activities described in paragraphs 
(a)(2) and (a)(3) of this section but not engaged in pursuant to a 
specific license issued to an institution pursuant to paragraph (a) of 
this section.
* * * * *

0
6. Revise Sec.  515.567 to read as follows:


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

    (a) Amateur and semi-professional international sports federation 
competitions. 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 
athletic competition by amateur or semi-professional athletes or 
athletic teams wishing to travel to participate in athletic competition 
in Cuba, provided that:
    (1) The athletic competition in Cuba is held under the auspices of 
the international sports federation for the relevant sport;
    (2) The U.S. participants in the athletic competition are selected 
by the U.S. federation for the relevant sport; and
    (3) The competition is open for attendance, and in relevant 
situations participation, by the Cuban public.
    (b) Public performances, other athletic or other non-athletic 
competitions, and exhibitions. Specific licenses, including

[[Page 33773]]

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, 
athletic competition not covered by paragraph (a) of this section, non-
athletic competition, or exhibition in Cuba by participants in such 
activities, provided that:
    (1) The event is open for attendance, and in relevant situations 
participation, by the Cuban public; and
    (2) All U.S. 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 benefiting the 
Cuban people.
    (c) Specific licenses will not be issued pursuant to this section 
authorizing any debit to a blocked account.


    Note to Sec.  515.567: See Sec.  515.571 for the authorization 
of certain transactions related to the activities of nationals of 
Cuba traveling in the United States.



0
7. Amend Sec.  515.570 by revising paragraphs (a), (d) introductory 
text, and (d)(1) and the note to the section to read as follows:


Sec.  515.570  Remittances to nationals of Cuba.

    (a) Periodic $300 family household remittances authorized. Persons 
subject to the jurisdiction of the United States who are 18 years of 
age or older are authorized to make remittances to nationals of Cuba 
who are members of the remitter's immediate family, provided that:
    (1) The remitter's total remittances do not exceed $300 per 
recipient household in any consecutive 3-month period, regardless of 
the number of members of the remitter's immediate family comprising 
that household;
    (2) The remittances are not made from a blocked source unless:
    (i) The remittances are authorized pursuant to paragraph (c) of 
this section; or
    (ii) The remittances are made to a recipient in a third country and 
are made from a blocked account in a banking institution in the United 
States held in the name of, or in which the beneficial interest is held 
by, the recipient; and
    (3) The recipient is not a prohibited official of the Government of 
Cuba or a prohibited member of the Cuban Communist Party. For the 
purposes of this paragraph, the term ``prohibited official of the 
Government of Cuba'' means: Ministers and Vice-ministers, members of 
the Council of State, and the Council of Ministers; members and 
employees of the National Assembly of People's Power; members of any 
provincial assembly; local sector chiefs of the Committees for the 
Defense of the Revolution; Director Generals and sub-Director Generals 
and higher of all Cuban ministries and state agencies; employees of the 
Ministry of the Interior (MININT); employees of the Ministry of Defense 
(MINFAR); secretaries and first secretaries of the Confederation of 
Labor of Cuba (CTC) and its component unions; chief editors, editors 
and deputy editors of Cuban state-run media organizations and programs, 
including newspapers, television, and radio; and members and employees 
of the Supreme Court (Tribuno Supremo Nacional). For purposes of this 
paragraph, the term ``prohibited members of the Cuban Communist Party'' 
means: members of the Politburo; the Central Committee; Department 
Heads of the Central Committee; employees of the Central Committee; and 
secretary and first secretary of the provincial Party central 
committees.
    (4) For the purposes of this paragraph (a), the term ``member of 
the remitter's immediate family'' means a spouse, child, grandchild, 
parent, grandparent, or sibling of the remitter or the remitter's 
spouse, as well as any spouse, widow, or widower of any of the 
foregoing.

    Note to paragraph (a): The maximum amount set forth in this 
paragraph does not apply to remittances to a Cuban individual who 
has been unblocked or whose current transactions are otherwise 
authorized pursuant to Sec.  515.505, because remittances to such 
persons do not require separate authorization.

* * * * *
    (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, including 
but not limited to nongovernmental organizations and individuals, to 
independent non-governmental entities in Cuba, including but not 
limited to pro-democracy groups, civil society groups, and religious 
organizations, and to members of such groups or organizations.
* * * * *

    Note to Sec.  515.570: For the rules relating to the carrying of 
remittances to Cuba, see paragraph (c)(4) of Sec.  515.560. Persons 
subject to U.S. jurisdiction are prohibited from engaging in the 
collection or forwarding of remittances to Cuba unless authorized 
pursuant to Sec.  515.572. For a list of authorized U.S. remittance 
service providers, see the following Web site: http://www.treas.gov/offices/eotffc/ofac/sanctions/cuba_tsp.pdf.



0
8. Amend Sec.  515.572 by revising paragraphs (a)(3) and (c)(4)(i) to 
read as follows:


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

    (a) * * *
    (3) Authorization of remittance forwarders. Persons subject to U.S. 
jurisdiction, including persons who provide remittance forwarding 
services and noncommercial organizations acting on behalf of donors, 
who wish to provide services in connection with the collection or 
forwarding of remittances authorized pursuant to this part must obtain 
a license from the Office of Foreign Assets Control. Depository 
institutions, as defined in Sec.  515.533, must obtain a license 
pursuant to this section only for the provision of services in 
connection with the collection and forwarding of remittances authorized 
pursuant to paragraphs (a), (b), and (c) of Sec.  515.570. Depository 
institutions do not need a license pursuant to this section to provide 
such services with respect to any other remittances authorized pursuant 
to this part.
* * * * *
    (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 or has received 
a specific license from the Office of Foreign Assets Control issued 
pursuant to this part. In the case of a customer traveling pursuant to 
a general license, 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 claimed. The statement must provide 
facts supporting the customer's belief that he or she qualifies for the 
general license 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.
* * * * *

0
9. Remove the reference to ``Sec.  515.565(a)(2)(v)'' each place it

[[Page 33774]]

appears in part 515 and add in its place ``Sec.  515.565(a)(5)''.

    Dated: June 10, 2004.
R. Richard Newcomb,
Director, Office of Foreign Assets Control.
    Approved: June 10, 2004.
Juan C. Zarate,
Deputy Assistant Secretary (Terrorist Financing and Financial Crimes), 
Department of the Treasury.
[FR Doc. 04-13630 Filed 6-14-04; 9:51 am]
BILLING CODE 4810-25-P