[Federal Register Volume 72, Number 168 (Thursday, August 30, 2007)]
[Rules and Regulations]
[Pages 50047-50052]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-17054]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Parts 515, 537, 538, and 560


Cuban Assets Control Regulations, Burmese Sanctions Regulations, 
Sudanese Sanctions Regulations, and Iranian Transactions Regulations

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Final rule.

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SUMMARY: The Office of Foreign Assets Control of the U.S. Department of 
the Treasury is revising the general license for certain publishing 
activities contained in the Cuban Assets Control Regulations, Burmese 
Sanctions Regulations, Sudanese Sanctions Regulations, and Iranian 
Transactions Regulations.

DATES: Effective Date: August 30, 2007.

FOR FURTHER INFORMATION CONTACT: Assistant Director for Licensing, 
tel.: 202/622-2480, Assistant Director for Compliance, Outreach & 
Implementation, tel.: 202/622-2490, Assistant Director for Policy, 
tel.: 202/622-4855, Office of Foreign Assets Control, or Chief Counsel 
(Foreign Assets Control), tel.: 202/622-2410, Office of the General 
Counsel, Department of the Treasury, Washington, DC 20220 (not toll 
free numbers).

SUPPLEMENTARY INFORMATION:

Electronic and Facsimile Availability

    This document and additional information concerning the Office of 
Foreign Assets Control (``OFAC'') are available from OFAC's Web site 
(http://www.treas.gov/ofac) or via facsimile through a 24-hour fax-on 
demand service, tel.: (202) 622-0077.

Background

    On December 17, 2004, the Office of Foreign Assets Control 
(``OFAC'') of the Department of the Treasury amended the Cuban Assets 
Control Regulations, 31 CFR Part 515 (the ``CACR''), the Sudanese 
Sanctions Regulations, 31 CFR Part 538 (the ``SSR''), and the Iranian 
Transactions Regulations, 31 CFR Part 560 (the ``ITR''), to authorize 
certain activities related to publishing. See 69 FR 75468 (December 17, 
2004). OFAC added Sec. Sec.  515.577, 538.529, and 560.538 to the CACR, 
SSR, and ITR, respectively, to authorize by general license 
transactions not already exempt from regulation that support the 
publishing and marketing of manuscripts, books, journals, and 
newspapers in paper and electronic format (``written publications''). 
On August 16, 2005, OFAC amended and reissued the Burmese Sanctions 
Regulations, 31 CFR Part 537 (the ``BSR'') including, at Sec.  537.526, 
a general license for the same publishing-related transactions.
    OFAC is amending these general licenses in various places to 
authorize the augmentation of written publications in electronic format 
through the addition of embedded software necessary for reading, 
browsing, navigating, or searching the written publications as well as 
the exportation of such embedded software provided certain conditions 
are met. These amendments also clarify that the term ``written 
publications'' used in the general licenses includes manuscripts, 
books, journals, and newspapers even if they are published solely in 
electronic format. A note is added to each general license clarifying 
that the importation and exportation of information or informational 
materials are exempt from the prohibitions and regulations contained in 
the CACR, SSR, and ITR and, in the case of the BSR, clarifying that the 
importation of informational materials is authorized and the 
exportation of informational materials is exempt from the prohibitions 
and regulations of the BSR. These amendments also make various other 
technical corrections, clarifications, and conforming changes.

Public Participation; Procedural Requirements

    Because the CACR, BSR, SSR, and ITR involve a foreign affairs 
function, the provisions of Executive Order 12866

[[Page 50048]]

and the Administrative Procedure Act (5 U.S.C. 553) requiring notice of 
proposed rulemaking, opportunity for public participation, and delay in 
effective date are inapplicable. Because no notice of proposed 
rulemaking is required for this rule, the Regulatory Flexibility Act (5 
U.S.C. 601-612) does not apply.

Paperwork Reduction Act

    The collections of information related to 31 CFR parts 515, 537, 
538, and 560 are contained in 31 CFR part 501. 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 collection of information displays a valid control number.

List of Subjects

31 CFR Part 515

    Administrative practice and procedure, Cuba, Exports, Foreign 
trade, Imports, Information.

31 CFR Part 537

    Administrative practice and procedure, Burma, Exports, Foreign 
trade, Imports, Information.

31 CFR Part 538

    Administrative practice and procedure, Exports, Foreign trade, 
Imports, Information, Sudan.

31 CFR Part 560

    Administrative practice and procedure, Exports, Foreign trade, 
Iran, Imports, Information.

0
For the reasons set forth in the preamble, OFAC amends 31 CFR parts 
515, 537, 538, and 560 as follows:

PART 515--CUBAN ASSETS CONTROL REGULATIONS

0
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; 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 E--Licenses, Authorizations, and Statements of Licensing 
Policy

0
2. Section 515.577 is revised to read as follows:


Sec.  515.577  Authorized transactions necessary and ordinarily 
incident to publishing.

    (a) To the extent that such activities are not exempt from this 
part, and subject to the restrictions set forth in paragraphs (b) 
through (d) of this section, persons subject to the jurisdiction of the 
United States are authorized to engage in all transactions necessary 
and ordinarily incident to the publishing and marketing of manuscripts, 
books, journals, and newspapers in paper or electronic format 
(collectively, ``written publications'').
    This section does not apply if the parties to the transactions 
described in this paragraph include the Government of Cuba. For the 
purposes of this section, the term ``Government of Cuba'' includes the 
state and the Government of Cuba, as well as any political subdivision, 
agency, or instrumentality thereof, including the Central Bank of Cuba; 
any person occupying the positions identified in Sec.  515.570(a)(3); 
employees of the Ministry of Justice; and any person acting or 
purporting to act directly or indirectly on behalf of any of the 
foregoing with respect to the transactions described in this paragraph. 
For the purposes of this section, the term ``Government of Cuba'' does 
not include any academic and research institutions and their personnel. 
Pursuant to this section, the following activities are authorized, 
provided that persons subject to the jurisdiction of the United States 
ensure that they are not engaging, without separate authorization, in 
the activities identified in paragraphs (b) through (d) of this 
section:
    (1) Commissioning and making advance payments for identifiable 
written publications not yet in existence, to the extent consistent 
with industry practice;
    (2) Collaborating on the creation and enhancement of written 
publications; (3)(i) Augmenting written publications through the 
addition of items such as photographs, artwork, translation, 
explanatory text, and, for a written publication in electronic format, 
the addition of embedded software necessary for reading, browsing, 
navigating, or searching the written publication;
    (ii) Exporting embedded software necessary for reading, browsing, 
navigating, or searching a written publication in electronic format, 
provided that, to the extent a license is required under the Export 
Administration Regulations, 15 CFR parts 730 through 774 (the ``EAR''), 
the exportation is licensed or otherwise authorized by the Department 
of Commerce under the provisions of the EAR;
    (4) Substantive editing of written publications;
    (5) Payment of royalties for written publications;
    (6) Creating or undertaking a marketing campaign to promote a 
written publication; and
    (7) Other transactions necessary and ordinarily incident to the 
publishing and marketing of written publications as described in this 
paragraph (a).
    (b) This section does not authorize transactions involving the 
provision of goods or services not necessary and ordinarily incident to 
the publishing and marketing of written publications as described in 
paragraph (a) of this section. For example, this section does not 
authorize persons subject to the jurisdiction of the United States:
    (1) To provide or receive individualized or customized services 
(including, but not limited to, accounting, legal, design, or 
consulting services), other than those necessary and ordinarily 
incident to the publishing and marketing of written publications, even 
though such individualized or customized services are delivered through 
the use of information and informational materials;
    (2) To create or undertake for any person a marketing campaign with 
respect to any service or product other than a written publication, or 
to create or undertake a marketing campaign of any kind for the benefit 
of the Government of Cuba;
    (3) To engage in the exportation or importation of goods to or from 
Cuba other than the exportation of embedded software described in 
paragraph (a)(3)(ii) of this section;
    (4) To operate a publishing house, sales outlet, or other office in 
Cuba; or
    (5) To engage in transactions related to travel to, from, or within 
Cuba.

    Note to paragraph (b): The importation from Cuba and the 
exportation to Cuba of information or informational materials, as 
defined in Sec.  515.332, whether commercial or otherwise, 
regardless of format or medium of transmission, are exempt from the 
prohibitions and regulations of this part. See Sec.  515.206(a).

    (c) This section does not authorize persons subject to the 
jurisdiction of the United States to engage the services of publishing 
houses or translators in Cuba unless such activity is primarily for the 
dissemination of written publications in Cuba.
    (d) This section does not authorize:
    (1) Transactions for the development, production, or design of 
software;

[[Page 50049]]

    (2) Transactions for the development, production, design, or 
marketing of technology specifically controlled by the International 
Traffic in Arms Regulations, 22 CFR parts 120 through 130 (the 
``ITAR''), the EAR, or the Department of Energy Regulations set forth 
at 10 CFR part 810.
    (3) The exportation of information or technology subject to the 
authorization requirements of 10 CFR part 810, or Restricted Data as 
defined in section 11 y. of the Atomic Energy Act of 1954, as amended, 
or of other information, data, or technology the release of which is 
controlled under the Atomic Energy Act and regulations therein;
    (4) The exportation of any item (including information) subject to 
the EAR where a U.S. person knows or has reason to know that the item 
will be used, directly or indirectly, with respect to certain nuclear, 
missile, chemical, or biological weapons or nuclear-maritime end-uses 
as set forth in part 744 of the EAR. In addition, U.S. persons are 
precluded from exporting any item subject to the EAR to certain 
restricted end-users, as set forth in part 744 of the EAR, as well as 
certain persons whose export privileges have been denied pursuant to 
parts 764 or 766 of the EAR, without authorization from the Department 
of Commerce; or
    (5) The exportation of information subject to licensing 
requirements under the ITAR, or exchanges of information that are 
subject to regulation by other government agencies.
    (e) Pursuant to Sec.  515.564, 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 that are 
directly incident to attendance of professional meetings that are 
necessary and ordinarily incident to the publishing and marketing of 
written publications.

PART 537--BURMESE SANCTIONS REGULATIONS

0
1. The authority citation for part 537 is amended to read as follows:

    Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 
1701-1706; Sec. 570 Pub. L. 104-208, 110 Stat. 3009; Pub. L. 108-61, 
117 Stat. 864; Pub. L. 109-177, 120 Stat. 192; E.O. 13047, 62 FR 
28301, 3 CFR 1997 Comp., p. 202; E.O. 13310, 68 FR 44853, 3 CFR 2004 
Comp., p. 241l.

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

0
2. Section 537.526 is revised to read as follows:


Sec.  537.526  Authorized transactions necessary and ordinarily 
incident to publishing.

    (a) To the extent that such activities are not exempt from this 
part, and subject to the restrictions set forth in paragraphs (b) 
through (d) of this section, U.S. persons are authorized to engage in 
all transactions otherwise prohibited by Sec.  537.201 or Sec.  537.202 
that are necessary and ordinarily incident to the publishing and 
marketing of manuscripts, books, journals, and newspapers in paper or 
electronic format (collectively, ``written publications''). This 
section does not apply if the parties to the transactions described in 
this paragraph include the State Peace and Development Council of Burma 
or the Union Solidarity and Development Association of Burma; any 
successor entity to any of the foregoing entities; or any person, other 
than personnel of academic and research institutions, acting or 
purporting to act directly or indirectly on behalf of the foregoing 
entities with respect to the transactions described in this paragraph. 
Pursuant to this section, transactions incident to the following 
activities are authorized, provided they do not involve any 
importations prohibited by Sec.  537.203 that are not authorized by 
another section of this part 537, and further provided that U.S. 
persons ensure that they are not engaging, without separate 
authorization, in the activities identified in paragraphs (b) through 
(d) of this section:
    (1) Commissioning and making advance payments for identifiable 
written publications not yet in existence, to the extent consistent 
with industry practice;
    (2) Collaborating on the creation and enhancement of written 
publications;
    (3)(i) Augmenting written publications through the addition of 
items such as photographs, artwork, translation, explanatory text, and, 
for a written publication in electronic format, the addition of 
embedded software necessary for reading, browsing, navigating, or 
searching the written publication;
    (ii) Exporting embedded software necessary for reading, browsing, 
navigating, or searching a written publication in electronic format, 
provided that, to the extent a license is required under the Export 
Administration Regulations, 15 CFR parts 730 through 774 (the ``EAR''), 
the exportation is licensed or otherwise authorized by the Department 
of Commerce under the provisions of the EAR;
    (4) Substantive editing of written publications;
    (5) Payment of royalties for written publications;
    (6) Creating or undertaking a marketing campaign to promote a 
written publication; and
    (7) Other transactions necessary and ordinarily incident to the 
publishing and marketing of written publications as described in this 
paragraph (a).
    (b) This section does not authorize transactions constituting the 
exportation or reexportation of financial services from the United 
States or by U.S. persons to Burma that are not necessary and 
ordinarily incident to the publishing and marketing of written 
publications as described paragraph (a) of this section. For example, 
this section does not authorize U.S. persons to transfer funds to Burma 
relating to the following:
    (1) The provision or receipt of individualized or customized 
services (including, but not limited to, accounting, legal, design, or 
consulting services), other than those necessary and ordinarily 
incident to the publishing and marketing of written publications, even 
though such individualized or customized services are delivered through 
the use of information and informational materials;
    (2) The creation or undertaking of a marketing campaign for any 
person with respect to any service or product other than a written 
publication, or the creation or undertaking of a marketing campaign of 
any kind for the benefit of the State Peace and Development Council of 
Burma or the Union Solidarity and Development Association of Burma; or
    (3) The operation of a publishing house, sales outlet, or other 
office in Burma.

    Note to paragraph (b): The importation of information or 
informational materials, as defined in Sec.  537.308, that are 
products of Burma is authorized by the general license set forth in 
Sec.  537.515. The exportation to Burma of information or 
informational materials, as defined in Sec.  537.308, whether 
commercial or otherwise, regardless of format or medium of 
transmission, is exempt from the prohibitions and regulations of 
this part. See Sec.  537.210(b).

    (c) This section does not authorize U.S. persons to engage in 
transactions constituting the exportation or reexportation of financial 
services to Burma that relate to the services of publishing houses or 
translators in Burma unless such activity is primarily for the 
dissemination of written publications in Burma.
    (d) This section does not authorize:

[[Page 50050]]

    (1) The importation into the United States of any article that is a 
product of Burma.

    Note to paragraph (d)(1): The importation of information or 
informational materials, as defined in Sec.  537.308, that are 
products of Burma is authorized by the general license set forth in 
Sec.  537.515.

    (2) Transactions constituting the exportation or reexportation of 
financial services from the United States or by U.S. persons to Burma 
that relate to the development, production, design, or marketing of 
technology specifically controlled by the International Traffic in Arms 
Regulations, 22 CFR parts 120 through 130 (the ``ITAR''), the EAR, or 
the Department of Energy Regulations set forth at 10 CFR part 810.
    (3) Transactions constituting the exportation or reexportation of 
financial services from the United States or by U.S. persons to Burma 
that relate to the exportation of information or technology subject to 
the authorization requirements of 10 CFR part 810, or Restricted Data 
as defined in section 11y. of the Atomic Energy Act of 1954, as 
amended, or of other information, data, or technology the release of 
which is controlled under the Atomic Energy Act and regulations 
therein;
    (4) Transactions constituting the exportation or reexportation of 
financial services from the United States or by U.S. persons to Burma 
that relate to the exportation of any item (including information) 
subject to the EAR where a U.S. person knows or has reason to know that 
the item will be used, directly or indirectly, with respect to certain 
nuclear, missile, chemical, or biological weapons or nuclear-maritime 
end-uses as set forth in part 744 of the EAR. In addition, U.S. persons 
are precluded from exporting any item subject to the EAR to certain 
restricted end-users, as set forth in part 744 of the EAR, as well as 
certain persons whose export privileges have been denied pursuant to 
parts 764 or 766 of the EAR, without authorization from the Department 
of Commerce; or
    (5) Transactions constituting the exportation or reexportation of 
financial services from the United States or by U.S. persons to Burma 
that relate to the exportation of information subject to licensing 
requirements under the ITAR or exchanges of information that are 
subject to regulation by other government agencies.

PART 538--SUDANESE SANCTIONS REGULATIONS

0
1. The authority citation for part 538 is amended to read as follows:

    Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 18 U.S.C. 2339B, 
2332d; 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 106-387, 114 Stat. 
1549; Pub. L. 109-177, 120 Stat. 192; E.O. 13067, 62 FR 59989; 3 
CFR, 1997 Comp., p. 230.

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

0
2. Section 538.529 is revised to read as follows:


Sec.  538.529  Authorized transactions necessary and ordinarily 
incident to publishing.

    (a) To the extent that such activities are not exempt from this 
part, and subject to the restrictions set forth in paragraphs (b) 
through (d) of this section, U.S. persons are authorized to engage in 
all transactions necessary and ordinarily incident to the publishing 
and marketing of manuscripts, books, journals, and newspapers in paper 
or electronic format (collectively, ``written publications''). This 
section does not apply if the parties to the transactions described in 
this paragraph include the Government of Sudan. For the purposes of 
this section, the term ``Government of Sudan'' includes the state and 
the Government of Sudan, as well as any political subdivision, agency, 
or instrumentality thereof, including the Central Bank of Sudan, and 
any person acting or purporting to act directly or indirectly on behalf 
of any of the foregoing with respect to the transactions described in 
this paragraph. For the purposes of this section, the term ``Government 
of Sudan'' does not include any academic and research institutions and 
their personnel. Pursuant to this section, the following activities are 
authorized, provided that U.S. persons ensure that they are not 
engaging, without separate authorization, in the activities identified 
in paragraphs (b) through (d) of this section:
    (1) Commissioning and making advance payments for identifiable 
written publications not yet in existence, to the extent consistent 
with industry practice;
    (2) Collaborating on the creation and enhancement of written 
publications;
    (3)(i) Augmenting written publications through the addition of 
items such as photographs, artwork, translation, explanatory text, and, 
for a written publication in electronic format, the addition of 
embedded software necessary for reading, browsing, navigating, or 
searching the written publication;
    (ii) Exporting embedded software necessary for reading, browsing, 
navigating, or searching a written publication in electronic format, 
provided that the software is classified as ``EAR 99'' under the Export 
Administration Regulations, 15 CFR parts 730-774 (the ``EAR''), or is 
not subject to the EAR;
    (4) Substantive editing of written publications;
    (5) Payment of royalties for written publications;
    (6) Creating or undertaking a marketing campaign to promote a 
written publication; and
    (7) Other transactions necessary and ordinarily incident to the 
publishing and marketing of written publications as described in this 
paragraph (a).
    (b) This section does not authorize transactions involving the 
provision of goods or services not necessary and ordinarily incident to 
the publishing and marketing of written publications as described in 
paragraph (a) of this section. For example, this section does not 
authorize U.S. persons:
    (1) To provide or receive individualized or customized services 
(including, but not limited to, accounting, legal, design, or 
consulting services), other than those necessary and ordinarily 
incident to the publishing and marketing of written publications, even 
though such individualized or customized services are delivered through 
the use of information and informational materials;
    (2) To create or undertake for any person a marketing campaign with 
respect to any service or product other than a written publication, or 
to create or undertake a marketing campaign of any kind for the benefit 
of the Government of Sudan;
    (3) To engage in the exportation or importation of goods to or from 
Sudan other than the exportation of embedded software described in 
paragraph (a)(3)(ii) of this section; or
    (4) To operate a publishing house, sales outlet, or other office in 
Sudan.

    Note to paragraph (b): The importation from Sudan and the 
exportation to Sudan of information or informational materials, as 
defined in Sec.  538.306, whether commercial or otherwise, 
regardless of format or medium of transmission, are exempt from the 
prohibitions and regulations of this part. See Sec.  538.211(c).

    (c) This section does not authorize U.S. persons to engage the 
services of publishing houses or translators in Sudan unless such 
activity is primarily for the dissemination of written publications in 
Sudan.
    (d) This section does not authorize:
    (1) The exportation from or importation into the United States of

[[Page 50051]]

services for the development, production, or design of software;
    (2) Transactions for the development, production, design, or 
marketing of technology specifically controlled by the International 
Traffic in Arms Regulations, 22 CFR parts 120 through 130 (the 
``ITAR''), the EAR, or the Department of Energy Regulations set forth 
at 10 CFR part 810.
    (3) The exportation of information or technology subject to the 
authorization requirements of 10 CFR part 810, or Restricted Data as 
defined in section 11 y. of the Atomic Energy Act of 1954, as amended, 
or of other information, data, or technology the release of which is 
controlled under the Atomic Energy Act and regulations therein;
    (4) The exportation of any item (including information) subject to 
the EAR where a U.S. person knows or has reason to know that the item 
will be used, directly or indirectly, with respect to certain nuclear, 
missile, chemical, or biological weapons or nuclear-maritime end-uses 
as set forth in part 744 of the EAR. In addition, U.S. persons are 
precluded from exporting any item subject to the EAR to certain 
restricted end-users, as set forth in part 744 of the EAR, as well as 
certain persons whose export privileges have been denied pursuant to 
parts 764 or 766 of the EAR, without authorization from the Department 
of Commerce; or
    (5) The exportation of information subject to licensing 
requirements under the ITAR or exchanges of information that are 
subject to regulation by other government agencies.

PART 560--IRANIAN TRANSACTIONS REGULATIONS

0
1. The authority citation for part 560 continues to read as follows:

    Authority: 3 U.S.C. 301; 18 U.S.C. 2339B, 2332d; 22 U.S.C. 
2349aa-9; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 
101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 106-387, 114 
Stat. 1549; E.O. 12613, 52 FR 41940, 3 CFR, 1987 Comp., p. 256; E.O. 
12957, 60 FR 14615, 3 CFR, 1995 Comp., p. 332; E.O. 12959, 60 FR 
24757, 3 CFR, 1995 Comp., p. 365; E.O. 13059, 62 FR 44531, 3 CFR, 
1997 Comp., p. 217.

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

0
2. Section 560.538 is revised to read as follows:


Sec.  560.538  Authorized transactions necessary and ordinarily 
incident to publishing.

    (a) To the extent that such activities are not exempt from this 
part, and subject to the restrictions set forth in paragraphs (b) 
through (d) of this section, U.S. persons are authorized to engage in 
all transactions necessary and ordinarily incident to the publishing 
and marketing of manuscripts, books, journals, and newspapers in paper 
or electronic format (collectively, ``written publications''). This 
section does not apply if the parties to the transactions described in 
this paragraph include the Government of Iran. For the purposes of this 
section, the term ``Government of Iran'' includes the state and the 
Government of Iran, as well as any political subdivision, agency, or 
instrumentality thereof, which includes the Central Bank of Islamic 
Republic of Iran, and any person acting or purporting to act directly 
or indirectly on behalf of any of the foregoing with respect to the 
transactions described in this paragraph. For the purposes of this 
section, the term ``Government of Iran'' does not include any academic 
and research institutions and their personnel. Pursuant to this 
section, the following activities are authorized, provided that U.S. 
persons ensure that they are not engaging, without separate 
authorization, in the activities identified in paragraphs (b) through 
(d) of this section:
    (1) Commissioning and making advance payments for identifiable 
written publications not yet in existence, to the extent consistent 
with industry practice;
    (2) Collaborating on the creation and enhancement of written 
publications;
    (3)(i) Augmenting written publications through the addition of 
items such as photographs, artwork, translation, explanatory text, and, 
for a written publication in electronic format, the addition of 
embedded software necessary for reading, browsing, navigating, or 
searching the written publication;
    (ii) Exporting embedded software necessary for reading, browsing, 
navigating, or searching a written publication in electronic format, 
provided that the software is classified as ``EAR 99'' under the Export 
Administration Regulations, 15 CFR parts 730 through 774 (the ``EAR''), 
or is not subject to the EAR;
    (4) Substantive editing of written publications;
    (5) Payment of royalties for written publications;
    (6) Creating or undertaking a marketing campaign to promote a 
written publication; and
    (7) Other transactions necessary and ordinarily incident to the 
publishing and marketing of written publications as described in this 
paragraph (a).
    (b) This section does not authorize transactions involving the 
provision of goods or services not necessary and ordinarily incident to 
the publishing and marketing of written publications as described in 
paragraph (a) of this section. For example, this section does not 
authorize U.S. persons:
    (1) To provide or receive individualized or customized services 
(including, but not limited to, accounting, legal, design, or 
consulting services), other than those necessary and ordinarily 
incident to the publishing and marketing of written publications, even 
though such individualized or customized services are delivered through 
the use of information and informational materials;
    (2) To create or undertake for any person a marketing campaign with 
respect to any service or product other than a written publication, or 
to create or undertake a marketing campaign of any kind for the benefit 
of the Government of Iran;
    (3) To engage in the exportation or importation of goods to or from 
Iran other than the exportation of embedded software described in 
paragraph (a)(3)(ii); or
    (4) To operate a publishing house, sales outlet, or other office in 
Iran.

    Note to paragraph (b): The importation from Iran and the 
exportation to Iran of information or informational materials, as 
defined in Sec.  560.315, whether commercial or otherwise, 
regardless of format or medium of transmission, are exempt from the 
prohibitions and regulations of this part. See Sec.  560.210(c).

    (c) This section does not authorize U.S. persons to engage the 
services of publishing houses or translators in Iran unless such 
activity is primarily for the dissemination of written publications in 
Iran.
    (d) This section does not authorize:
    (1) The exportation from or importation into the United States of 
services for the development, production, or design of software;
    (2) Transactions for the development, production, design, or 
marketing of technology specifically controlled by the International 
Traffic in Arms Regulations, 22 CFR parts 120 through 130 (the 
``ITAR''), the EAR, or the Department of Energy Regulations set forth 
at 10 CFR part 810.
    (3) The exportation of information or technology subject to the 
authorization requirements of 10 CFR part 810, or Restricted Data as 
defined in section 11 y. of the Atomic Energy Act of 1954, as amended, 
or of other information, data, or technology the release of which is

[[Page 50052]]

controlled under the Atomic Energy Act and regulations therein;
    (4) The exportation of any item (including information) subject to 
the EAR where a U.S. person knows or has reason to know that the item 
will be used, directly or indirectly, with respect to certain nuclear, 
missile, chemical, or biological weapons or nuclear-maritime end-uses 
as set forth in part 744 of the EAR. In addition, U.S. persons are 
precluded from exporting any item subject to the EAR to certain 
restricted end-users, as set forth in part 744 of the EAR, as well as 
certain persons whose export privileges have been denied pursuant to 
parts 764 or 766 of the EAR, without authorization from the Department 
of Commerce; or
    (5) The exportation of information subject to licensing 
requirements under the ITAR or exchanges of information that are 
subject to regulation by other government agencies.

    Dated: August 21, 2007.
Adam J. Szubin,
Director, Office of Foreign Assets Control.
[FR Doc. E7-17054 Filed 8-29-07; 8:45 am]
BILLING CODE 4811-42-P