[Federal Register Volume 75, Number 46 (Wednesday, March 10, 2010)]
[Rules and Regulations]
[Pages 10996-10997]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-5153]


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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: Final rule.

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SUMMARY: The Department of the Treasury's Office of Foreign Assets 
Control (``OFAC'') is amending the Cuban Assets Control Regulations to 
implement a provision of the Omnibus Appropriations Act, 2010, 
containing an interpretation of the term ``payment of cash in 
advance,'' which is used to

[[Page 10997]]

describe one of the two payment or financing terms for authorized 
exports from the United States to Cuba pursuant to the Trade Sanctions 
Reform and Export Enhancement Act of 2000.

DATES: Effective Date: March 9, 2010.

FOR FURTHER INFORMATION CONTACT: Assistant Director for Compliance, 
Outreach & Implementation, tel.: 202/622-2490, Assistant Director for 
Licensing, tel.: 202/622-2480, 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 (not toll free numbers).

SUPPLEMENTARY INFORMATION: 

Electronic and Facsimile Availability

    This document and additional information concerning 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

    Section 908(b)(1) of the Trade Sanctions Reform and Export 
Enhancement Act of 2000 (22 U.S.C. 7207(b)(1)) (``TSRA'') specifies 
that the only payment or financing terms U.S. persons may provide for 
authorized sales of agricultural commodities or products to Cuba or any 
person in Cuba are (1) ``payment of cash in advance,'' or (2) financing 
by third-country financial institutions (excluding U.S. persons or 
Government of Cuba entities). On February 22, 2005, OFAC amended 
section 515.533 of the Cuban Assets Control Regulations, 31 CFR part 
515 (the ``CACR''), to clarify that the term ``payment of cash in 
advance'' means that payment is received by the seller or the seller's 
agent prior to shipment of the goods from the port at which they are 
loaded.
    OFAC is further amending section 515.533 of the CACR to implement 
Section 619 of the Omnibus Appropriations Act, 2010 (Pub. L. 111-117, 
123 Stat. 3034), which directs that during Fiscal Year 2010, for the 
purposes of TSRA, ``* * * the term `payment of cash in advance' shall 
be interpreted as payment before the transfer of title to, and control 
of, the exported items to the Cuban purchaser.''

Public Participation

    Because the amendments of the CACR involve a foreign affairs 
function, Executive Order 12866 and the provisions of the 
Administrative Procedure Act (5 U.S.C. 553) requiring notice of 
proposed rulemaking, opportunity for public participation, and delay in 
effective date are inapplicable. Because no notice of proposed 
rulemaking is required for this rule, the Regulatory Flexibility Act (5 
U.S.C. 601-612) does not apply.

Paperwork Reduction Act

    The collections of information related to the CACR are contained in 
the Reporting, Procedures and Penalties Regulations, 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 in 31 CFR Part 515

    Banks, Banking, Cuba, Currency, Exports, Foreign trade.

0
For the reasons set forth in the preamble, the Department of the 
Treasury's Office of Foreign Assets Control amends 31 CFR part 515 as 
set forth below:

PART 515--CUBAN ASSETS CONTROL REGULATIONS

0
1. The authority citation for part 515 is revised to read as follows:

    Authority:  18 U.S.C. 2332d; 22 U.S.C. 2370(a), 6001-6010; 22 
U.S.C. 7201-7211; 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. 104-114, 110 Stat. 
785 (22 U.S.C. 6082); Pub. L. 105-277, 112 Stat. 2681; Pub. L. 111-
8, 123 Stat. 524; Pub. L. 111-117, 123 Stat. 3034; E.O. 9193, 7 FR 
5205, 3 CFR, 1938-1943 Comp., p. 1174; 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. Amend Sec.  515.533 by revising paragraph (a)(2)(i) to read as 
follows:


Sec.  515.533  Transactions incident to exportations from the United 
States and reexportations of 100% U.S.-origin items to Cuba; 
negotiation of executory contracts.

    (a) * * *
    (2) * * *
    (i)(A) Payment of cash in advance. Except as provided in paragraph 
(a)(2)(i)(B) of this section, for the purposes of this section, the 
term ``payment of cash in advance'' means that payment is received by 
the seller or the seller's agent prior to shipment of the goods from 
the port at which they are loaded;
    (B) Payment of cash in advance during Fiscal Year 2010. For sales 
of agricultural items delivered to Cuba between October 1, 2009, and 
September 30, 2010, or delivered pursuant to a contract entered into 
between October 1, 2009, and September 30, 2010, and shipped within 
twelve months from the signing of the contract, the term ``payment of 
cash in advance'' shall mean payment before the transfer of title to, 
and control of, the exported items to the Cuban purchaser;

    Note to Sec.  515.533(a)(2)(i)(B):  The payment rule set forth 
in this paragraph is required by Section 619 of the Omnibus 
Appropriations Act, 2010 (Pub. L. 111-117).

* * * * *

    Dated: March 5, 2010.
Adam J. Szubin,
Director, Office of Foreign Assets Control.
[FR Doc. 2010-5153 Filed 3-9-10; 8:45 am]
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