Cuban Assets Control Regulations; Sudanese Sanctions Regulations; Iranian Transactions Regulations, 10997-11000 [2010-5023]
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Federal Register / Vol. 75, No. 46 / Wednesday, March 10, 2010 / Rules and Regulations
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 (https://
www.treas.gov/ofac) or via facsimile
through a 24-hour fax-on demand
service, tel.: 202–622–0077.
Background
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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,
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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
10997
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 § 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.
Banks, Banking, Cuba, Currency,
Exports, Foreign trade.
■ 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:
[FR Doc. 2010–5153 Filed 3–9–10; 8:45 am]
PART 515—CUBAN ASSETS
CONTROL REGULATIONS
31 CFR Parts 515, 538, and 560
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
2. Amend § 515.533 by revising
paragraph (a)(2)(i) to read as follows:
■
§ 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
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BILLING CODE 4810–AL–P
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
Cuban Assets Control Regulations;
Sudanese Sanctions Regulations;
Iranian Transactions Regulations
AGENCY: Office of Foreign Assets
Control, Treasury.
ACTION: Final rule.
SUMMARY: The Department of the
Treasury’s Office of Foreign Assets
Control (‘‘OFAC’’) is amending the
Sudanese Sanctions Regulations and the
Iranian Transactions Regulations to
authorize the exportation of certain
services and software incident to the
exchange of personal communications
over the Internet. Similarly, OFAC is
amending the Cuban Assets Control
Regulations to authorize the exportation
of certain services incident to the
exchange of personal communications
over the Internet.
DATES: Effective Date: March 8, 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:
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Federal Register / Vol. 75, No. 46 / Wednesday, March 10, 2010 / Rules and Regulations
Electronic and Facsimile Availability
This document and additional
information concerning OFAC are
available from OFAC’s Web site (https://
www.treas.gov/ofac). Certain general
information pertaining to OFAC’s
sanctions programs also is available via
facsimile through a 24-hour fax-ondemand service, tel.: 202–622–0077.
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Background
OFAC is amending the Sudanese
Sanctions Regulations, 31 CFR part 538
(the ‘‘SSR’’), and the Iranian
Transactions Regulations, 31 CFR part
560 (the ‘‘ITR’’), to authorize the
exportation to persons in Sudan and
Iran, respectively, of certain services
and software incident to the exchange of
personal communications over the
Internet.
Unless authorized by a general or
specific license, or otherwise exempt,
the exportation of such services and
software from the United States or by a
United States person, wherever located,
to Sudan or Iran is prohibited. Pursuant
to section 538.205 of the SSR, the
exportation or reexportation, directly or
indirectly, to Sudan of any goods,
technology, or services from the United
States or by a United States person,
wherever located, or requiring the
issuance of a license by a Federal
agency, is prohibited. As set forth in
section 538.212(g)(1) of the SSR,
however, this prohibition does not
apply with respect to most exports and
reexports to the Specified Areas of
Sudan, as defined in section 538.320. In
addition, pursuant to section 538.201 of
the SSR, all property and interests in
property of the Government of Sudan
that are or come within the United
States, or that are or come within the
possession or control of U.S. persons,
including their overseas branches, are
blocked and may not be transferred,
paid, exported, withdrawn or otherwise
dealt in. The term property, as defined
in section 538.310 of the SSR,
specifically includes services. As
defined in section 538.305 of the SSR,
the term Government of Sudan does not
include the regional government of
Southern Sudan.
Section 560.204 of the ITR provides
that the exportation, reexportation, sale,
or supply, directly or indirectly, from
the United States or by a U.S. person,
wherever located, of any goods,
technology, or services to Iran or the
Government of Iran is prohibited. The
Iran-Iraq Arms Non-Proliferation Act of
1992 (Pub. L. 102–484) (50 U.S.C. 1701
note) (‘‘IIANPA’’) and section 6 of
Executive Order 13059 of August 19,
1997 (‘‘Prohibiting Certain Transactions
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With Respect to Iran’’) (62 FR 44531,
August 21, 1997), generally preclude
OFAC from authorizing—whether by
general or specific license—the
exportation to Iran of any goods or
technology listed on the Commerce
Control List (‘‘CCL’’) in the Export
Administration Regulations, 15 CFR
parts 730 through 774 (the ‘‘EAR’’),
unless the President exercises the
waiver authority provided in section
1606 of IIANPA. On September 27,
1994, the President delegated his
authorities under IIANPA to the
Secretary of State. Since much of the
software necessary for the exchange of
personal communications or the sharing
of information over the Internet is listed
on the CCL, the exercise of this waiver
authority is necessary before OFAC may
generally or specifically license the
exportation of such software to Iran.
On December 10, 2009, the
Department of State determined that it
is essential to the national interest of the
United States to exercise the waiver
authority in section 1606 of IIANPA
with respect to the exportation to Iran
of certain dual-use software classified as
mass market software by the Department
of Commerce (‘‘Commerce’’) and
essential for the exchange of personal
communications and/or sharing of
information over the Internet. In
reporting this determination to Congress
on December 15, 2009, the Department
of State explained that this software is
necessary to foster and support the free
flow of information to individual
Iranian citizens and, therefore, is
essential to the national interest of the
United States.
As events in Iran since last June’s
Presidential election there have shown,
personal Internet-based
communications are a vital tool for
change. Similar considerations apply in
Sudan. Accordingly, to ensure that the
sanctions on Sudan and Iran do not
have an unintended chilling effect on
the ability of companies to provide
personal communications tools to
individuals in those countries, OFAC is
adding new § 538.533 to the SSR and
new § 560.540 to the ITR. These new
sections authorize the exportation from
the United States or by U.S. persons,
wherever located, to persons in Sudan
and Iran, respectively, of certain
services and software incident to the
exchange of personal communications
over the Internet, such as instant
messaging, chat and e-mail, social
networking, sharing of photos and
movies, web browsing, and blogging. To
qualify for this authorization, such
services and software must be publicly
available at no cost to the user. In
addition, such software qualifies for this
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authorization only if it is (1) Classified
as ‘‘EAR99’’ under the EAR; (2) not
subject to the EAR; or (3) classified by
Commerce as mass market software
under export control classification
number (‘‘ECCN’’) 5D992 of the EAR.
These new sections of the SSR and the
ITR, however, do not authorize the
direct or indirect exportation of services
or software with knowledge or reason to
know that such services or software are
intended for the Government of Sudan
or the Government of Iran.
New § 538.533 of the SSR and new
§ 560.540 of the ITR each contain a
statement of licensing policy in addition
to the general licenses authorizing the
exportation of certain Internet-based
personal communications services and
software. Paragraph (c) of each of these
two sections provides that specific
licenses may be issued on a case-by-case
basis for the exportation of services and
software not covered by the general
license that are incident to the sharing
of information over the Internet. To be
eligible for consideration under this
policy, software must be classified as
‘‘EAR99,’’ not subject to the EAR, or
classified by Commerce as mass market
software under ECCN 5D992 of the EAR.
OFAC also is amending the Cuban
Assets Control Regulations, 31 CFR part
515 (the ‘‘CACR’’), to add a similar
general license authorizing the
exportation to persons in Cuba of
certain services incident to the exchange
of personal communications over the
Internet. Unless authorized by a general
or specific license, the exportation of
such services from the United States or
by persons subject to U.S. jurisdiction to
Cuba is prohibited. Section 515.201 of
the CACR prohibits all dealings in,
including, without limitation, transfers,
withdrawals, or exportations of, any
property in which Cuba or a Cuban
national has any interest of any nature
whatsoever, direct or indirect, by any
person subject to the jurisdiction of the
United States. The term property, as
defined in § 515.311 of the CACR,
specifically includes services.
On April 13, 2009, the President
stated that the promotion of democracy
and human rights in Cuba is in the
national interest of the United States
and is a key component of U.S. foreign
policy in the Americas. The President
announced an initiative to pursue these
goals by, among other things, increasing
the flow of information to the Cuban
people. Consistent with that initiative,
OFAC is adding new § 515.578 to the
CACR to authorize the exportation from
the United States or by persons subject
to U.S. jurisdiction to persons in Cuba
of certain services incident to the
exchange of personal communications
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Federal Register / Vol. 75, No. 46 / Wednesday, March 10, 2010 / Rules and Regulations
over the Internet, such as instant
messaging, chat and email, social
networking, sharing of photos and
movies, web browsing, and blogging. To
qualify for this authorization, the
services must be publicly available at no
cost to the user. New § 515.578 does not
authorize the direct or indirect
exportation of services with knowledge
or reason to know that such services are
intended for a prohibited official of the
Government of Cuba, as defined in
§ 515.337 of the CACR, or a prohibited
member of the Cuban Communist Party,
as defined in § 515.338.
Like the new authorization sections
added to the SSR and ITR, new
§ 515.578 contains a statement of
licensing policy in addition to the
general license authorizing the
exportation of certain Internet-based
personal communications services.
Paragraph (c) of § 515.578 provides that
specific licenses may be issued on a
case-by-case basis for the exportation of
services not covered by the general
license that are incident to the sharing
of information over the Internet.
The new general license for Cuba,
unlike those for Sudan and Iran, does
not include an authorization for the
exportation of software, because the
exportation of goods and technology,
including software, to Cuba is separately
licensed or otherwise authorized by
Commerce under the EAR. Section
515.533 of the CACR generally licenses
all transactions ordinarily incident to
the exportation of items from the United
States, or the reexportation of 100%
U.S.-origin items from a third country,
to any person in Cuba, provided the
exportation or reexportation is licensed
or otherwise authorized by Commerce
under the EAR, and provided further
that only certain specified payment and
financing terms may be used.
By the addition of the authorizations
described above to the SSR, ITR, and
CACR, OFAC hopes to encourage the
exchange of personal communications
over the Internet by persons in Sudan,
Iran, and Cuba.
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Public Participation
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List of Subjects
31 CFR Part 515
Banks, Banking, Communications,
Cuba, Exports, Foreign trade.
31 CFR Part 538
Banks, Banking, Communications,
Exports, Foreign trade, Sudan.
31 CFR Part 560
Banks, Banking, Communications,
Exports, Foreign trade, Iran.
■ For the reasons set forth in the
preamble, the Department of the
Treasury’s Office of Foreign Assets
Control amends 31 CFR parts 515, 538,
and 560 as follows:
PART 515—CUBAN ASSETS
CONTROL REGULATIONS
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; 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
2. Add a new § 515.578 to subpart E
to read as follows:
■
Because the amendments of the
CACR, SSR, and ITR 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.
VerDate Nov<24>2008
Paperwork Reduction Act
The collections of information related
to the CACR, SSR, and ITR 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.
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§ 515.578 Exportation of certain services
incident to Internet-based communications.
(a) Except as provided in paragraph
(b) of this section, the exportation from
the United States or by persons subject
to U.S. jurisdiction to persons in Cuba
of services incident to the exchange of
personal communications over the
Internet, such as instant messaging, chat
and email, social networking, sharing of
photos and movies, web browsing, and
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10999
blogging, is authorized, provided that
such services are publicly available at
no cost to the user.
(b) This section does not authorize:
(1) The direct or indirect exportation
of services with knowledge or reason to
know that such services are intended for
a prohibited official of the Government
of Cuba, as defined in § 515.337 of this
part, or a prohibited member of the
Cuban Communist Party, as defined in
§ 515.338 of this part.
(2) The direct or indirect exportation
of Internet connectivity services or
telecommunications transmission
facilities (such as satellite links or
dedicated lines).
Note to § 515.578(b)(2): For general
licenses related to the provision of
telecommunications services between the
United States and Cuba and contracts for
telecommunications services provided to
particular individuals in Cuba, see
§ 515.542(b) and § 515.542(c), respectively, of
this part. For a general license and a
statement of specific licensing policy related
to the establishment of telecommunications
facilities linking the United States or third
countries and Cuba, see § 515.542(d) of this
part.
(3) The direct or indirect exportation
of web-hosting services that are for
purposes other than personal
communications (e.g., web-hosting
services for commercial endeavors) or of
domain name registration services.
(4) The direct or indirect exportation
of any items to Cuba.
Note to § 515.578(b)(4): For the rules
related to transactions ordinarily incident to
the exportation or reexportation of items,
including software, to Cuba, see §§ 515.533
and 515.559 of this part.
(c) Specific licenses may be issued on
a case-by-case basis for the exportation
of other services incident to the sharing
of information over the Internet.
PART 538—SUDANESE SANCTIONS
REGULATIONS
3. The authority citation for part 538
is revised to read as follows:
■
Authority: 3 U.S.C. 301; 18 U.S.C. 2339B,
2332d; 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); 22 U.S.C. 7201–
7211; Pub. L. 109–344, 120 Stat. 1869; Pub.
L. 110–96, 121 Stat. 1011 (50 U.S.C. 1705
note); E.O. 13067, 62 FR 59989, 3 CFR, 1997
Comp., p. 230; E.O. 13412, 71 FR 61369, 3
CFR, 2006 Comp., p. 244.
Subpart E—Licenses, Authorizations,
and Statements of Licensing Policy
4. Add a new § 538.533 to subpart E
to read as follows:
■
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§ 538.533 Exportation of certain services
and software incident to Internet-based
communications.
(a) To the extent that such
transactions are not exempt from the
prohibitions of this part and subject to
the restrictions set forth in paragraph (b)
of this section, the following
transactions are authorized:
(1) The exportation from the United
States or by U.S. persons, wherever
located, to persons in Sudan of services
incident to the exchange of personal
communications over the Internet, such
as instant messaging, chat and email,
social networking, sharing of photos and
movies, web browsing, and blogging,
provided that such services are publicly
available at no cost to the user.
(2) The exportation from the United
States or by U.S. persons, wherever
located, to persons in Sudan of software
necessary to enable the services
described in paragraph (a)(1) of this
section, provided that such software is
classified as ‘‘EAR99’’ under the Export
Administration Regulations, 15 CFR
parts 730 through 774 (the ‘‘EAR’’), is not
subject to the EAR, or is classified by
the U.S. Department of Commerce
(‘‘Commerce’’) as mass market software
under export control classification
number (‘‘ECCN’’) 5D992 of the EAR,
and provided further that such software
is publicly available at no cost to the
user.
(b) This section does not authorize:
(1) The direct or indirect exportation
of services or software with knowledge
or reason to know that such services or
software are intended for the
Government of Sudan.
(2) The direct or indirect exportation
of any goods or technology listed on the
Commerce Control List in the EAR, 15
CFR part 774, supplement No. 1
(‘‘CCL’’), except for software necessary to
enable the services described in
paragraph (a)(1) of this section that is
classified by Commerce as mass market
software under ECCN 5D992 of the EAR.
(3) The direct or indirect exportation
of Internet connectivity services or
telecommunications transmission
facilities (such as satellite links or
dedicated lines).
(4) The direct or indirect exportation
of web-hosting services that are for
purposes other than personal
communications (e.g., web-hosting
services for commercial endeavors) or of
domain name registration services.
(c) Specific licenses may be issued on
a case-by-case basis for the exportation
of other services and software incident
to the sharing of information over the
Internet, provided the software is
classified as ‘‘EAR99,’’ not subject to the
EAR, or classified by Commerce as mass
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market software under ECCN 5D992 of
the EAR.
(d) Nothing in this section or in any
license issued pursuant to paragraph (c)
of this section relieves the exporter from
compliance with the export license
application requirements of another
Federal agency.
PART 560—IRANIAN TRANSACTIONS
REGULATIONS
5. The authority citation for part 560
is revised 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);
22 U.S.C. 7201–7211; Pub. L. 110–96, 121
Stat. 1011 (50 U.S.C. 1705 note); 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. 356; E.O. 13059, 62 FR 44531, 3
CFR, 1997 Comp., p. 217.
Subpart E—Licensing, Authorizations,
and Statements of Licensing Policy
6. Add a new § 560.540 to subpart E
to read as follows:
■
§ 560.540 Exportation of certain services
and software incident to Internet-based
communications.
(a) To the extent that such
transactions are not exempt from the
prohibitions of this part and subject to
the restrictions set forth in paragraph (b)
of this section, the following
transactions are authorized:
(1) The exportation from the United
States or by U.S. persons, wherever
located, to persons in Iran of services
incident to the exchange of personal
communications over the Internet, such
as instant messaging, chat and email,
social networking, sharing of photos and
movies, web browsing, and blogging,
provided that such services are publicly
available at no cost to the user.
(2) The exportation from the United
States or by U.S. persons, wherever
located, to persons in Iran of software
necessary to enable the services
described in paragraph (a)(1) of this
section, provided that such software is
classified as ‘‘EAR99’’ under the Export
Administration Regulations, 15 CFR
parts 730 through 774 (the ‘‘EAR’’), is not
subject to the EAR, or is classified by
the U.S. Department of Commerce
(‘‘Commerce’’) as mass market software
under export control classification
number (‘‘ECCN’’) 5D992 of the EAR,
and provided further that such software
is publicly available at no cost to the
user.
(b) This section does not authorize:
PO 00000
Frm 00006
Fmt 4700
Sfmt 4700
(1) The direct or indirect exportation
of services or software with knowledge
or reason to know that such services or
software are intended for the
Government of Iran.
(2) The direct or indirect exportation
of any goods or technology listed on the
Commerce Control List in the EAR, 15
CFR part 774, supplement No. 1
(‘‘CCL’’), except for software necessary to
enable the services described in
paragraph (a)(1) of this section that is
classified by Commerce as mass market
software under ECCN 5D992 of the EAR.
(3) The direct or indirect exportation
of Internet connectivity services or
telecommunications transmission
facilities (such as satellite links or
dedicated lines).
(4) The direct or indirect exportation
of web-hosting services that are for
purposes other than personal
communications (e.g., web-hosting
services for commercial endeavors) or of
domain name registration services.
(c) Specific licenses may be issued on
a case-by-case basis for the exportation
of other services and software incident
to the sharing of information over the
Internet, provided the software is
classified as ‘‘EAR99,’’ not subject to the
EAR, or classified by Commerce as mass
market software under ECCN 5D992 of
the EAR.
Dated: March 3, 2010.
Adam J. Szubin,
Director, Office of Foreign Assets Control.
[FR Doc. 2010–5023 Filed 3–8–10; 10:00 am]
BILLING CODE 4810–AL–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 165
[Docket No. USCG–2008–0124]
RIN 1625–AA87
Security Zone; Freeport LNG Basin,
Freeport, TX
Coast Guard, DHS.
Final rule.
AGENCY:
ACTION:
SUMMARY: The Coast Guard has
established a permanent security zone
in the Freeport LNG Basin. This security
zone is needed to protect vessels,
waterfront facilities, the public, and
other surrounding areas from
destruction, loss, or injury caused by
sabotage, subversive acts, accidents, or
other actions of a similar nature. Entry
into this zone is prohibited, except for
vessels that have obtained the express
E:\FR\FM\10MRR1.SGM
10MRR1
]]>Agencies
[Federal Register Volume 75, Number 46 (Wednesday, March 10, 2010)]
[Rules and Regulations]
[Pages 10997-11000]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-5023]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Parts 515, 538, and 560
Cuban Assets Control Regulations; Sudanese Sanctions Regulations;
Iranian Transactions Regulations
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Department of the Treasury's Office of Foreign Assets
Control (``OFAC'') is amending the Sudanese Sanctions Regulations and
the Iranian Transactions Regulations to authorize the exportation of
certain services and software incident to the exchange of personal
communications over the Internet. Similarly, OFAC is amending the Cuban
Assets Control Regulations to authorize the exportation of certain
services incident to the exchange of personal communications over the
Internet.
DATES: Effective Date: March 8, 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:
[[Page 10998]]
Electronic and Facsimile Availability
This document and additional information concerning OFAC are
available from OFAC's Web site (https://www.treas.gov/ofac). Certain
general information pertaining to OFAC's sanctions programs also is
available via facsimile through a 24-hour fax-on-demand service, tel.:
202-622-0077.
Background
OFAC is amending the Sudanese Sanctions Regulations, 31 CFR part
538 (the ``SSR''), and the Iranian Transactions Regulations, 31 CFR
part 560 (the ``ITR''), to authorize the exportation to persons in
Sudan and Iran, respectively, of certain services and software incident
to the exchange of personal communications over the Internet.
Unless authorized by a general or specific license, or otherwise
exempt, the exportation of such services and software from the United
States or by a United States person, wherever located, to Sudan or Iran
is prohibited. Pursuant to section 538.205 of the SSR, the exportation
or reexportation, directly or indirectly, to Sudan of any goods,
technology, or services from the United States or by a United States
person, wherever located, or requiring the issuance of a license by a
Federal agency, is prohibited. As set forth in section 538.212(g)(1) of
the SSR, however, this prohibition does not apply with respect to most
exports and reexports to the Specified Areas of Sudan, as defined in
section 538.320. In addition, pursuant to section 538.201 of the SSR,
all property and interests in property of the Government of Sudan that
are or come within the United States, or that are or come within the
possession or control of U.S. persons, including their overseas
branches, are blocked and may not be transferred, paid, exported,
withdrawn or otherwise dealt in. The term property, as defined in
section 538.310 of the SSR, specifically includes services. As defined
in section 538.305 of the SSR, the term Government of Sudan does not
include the regional government of Southern Sudan.
Section 560.204 of the ITR provides that the exportation,
reexportation, sale, or supply, directly or indirectly, from the United
States or by a U.S. person, wherever located, of any goods, technology,
or services to Iran or the Government of Iran is prohibited. The Iran-
Iraq Arms Non-Proliferation Act of 1992 (Pub. L. 102-484) (50 U.S.C.
1701 note) (``IIANPA'') and section 6 of Executive Order 13059 of
August 19, 1997 (``Prohibiting Certain Transactions With Respect to
Iran'') (62 FR 44531, August 21, 1997), generally preclude OFAC from
authorizing--whether by general or specific license--the exportation to
Iran of any goods or technology listed on the Commerce Control List
(``CCL'') in the Export Administration Regulations, 15 CFR parts 730
through 774 (the ``EAR''), unless the President exercises the waiver
authority provided in section 1606 of IIANPA. On September 27, 1994,
the President delegated his authorities under IIANPA to the Secretary
of State. Since much of the software necessary for the exchange of
personal communications or the sharing of information over the Internet
is listed on the CCL, the exercise of this waiver authority is
necessary before OFAC may generally or specifically license the
exportation of such software to Iran.
On December 10, 2009, the Department of State determined that it is
essential to the national interest of the United States to exercise the
waiver authority in section 1606 of IIANPA with respect to the
exportation to Iran of certain dual-use software classified as mass
market software by the Department of Commerce (``Commerce'') and
essential for the exchange of personal communications and/or sharing of
information over the Internet. In reporting this determination to
Congress on December 15, 2009, the Department of State explained that
this software is necessary to foster and support the free flow of
information to individual Iranian citizens and, therefore, is essential
to the national interest of the United States.
As events in Iran since last June's Presidential election there
have shown, personal Internet-based communications are a vital tool for
change. Similar considerations apply in Sudan. Accordingly, to ensure
that the sanctions on Sudan and Iran do not have an unintended chilling
effect on the ability of companies to provide personal communications
tools to individuals in those countries, OFAC is adding new Sec.
538.533 to the SSR and new Sec. 560.540 to the ITR. These new sections
authorize the exportation from the United States or by U.S. persons,
wherever located, to persons in Sudan and Iran, respectively, of
certain services and software incident to the exchange of personal
communications over the Internet, such as instant messaging, chat and
e-mail, social networking, sharing of photos and movies, web browsing,
and blogging. To qualify for this authorization, such services and
software must be publicly available at no cost to the user. In
addition, such software qualifies for this authorization only if it is
(1) Classified as ``EAR99'' under the EAR; (2) not subject to the EAR;
or (3) classified by Commerce as mass market software under export
control classification number (``ECCN'') 5D992 of the EAR. These new
sections of the SSR and the ITR, however, do not authorize the direct
or indirect exportation of services or software with knowledge or
reason to know that such services or software are intended for the
Government of Sudan or the Government of Iran.
New Sec. 538.533 of the SSR and new Sec. 560.540 of the ITR each
contain a statement of licensing policy in addition to the general
licenses authorizing the exportation of certain Internet-based personal
communications services and software. Paragraph (c) of each of these
two sections provides that specific licenses may be issued on a case-
by-case basis for the exportation of services and software not covered
by the general license that are incident to the sharing of information
over the Internet. To be eligible for consideration under this policy,
software must be classified as ``EAR99,'' not subject to the EAR, or
classified by Commerce as mass market software under ECCN 5D992 of the
EAR.
OFAC also is amending the Cuban Assets Control Regulations, 31 CFR
part 515 (the ``CACR''), to add a similar general license authorizing
the exportation to persons in Cuba of certain services incident to the
exchange of personal communications over the Internet. Unless
authorized by a general or specific license, the exportation of such
services from the United States or by persons subject to U.S.
jurisdiction to Cuba is prohibited. Section 515.201 of the CACR
prohibits all dealings in, including, without limitation, transfers,
withdrawals, or exportations of, any property in which Cuba or a Cuban
national has any interest of any nature whatsoever, direct or indirect,
by any person subject to the jurisdiction of the United States. The
term property, as defined in Sec. 515.311 of the CACR, specifically
includes services.
On April 13, 2009, the President stated that the promotion of
democracy and human rights in Cuba is in the national interest of the
United States and is a key component of U.S. foreign policy in the
Americas. The President announced an initiative to pursue these goals
by, among other things, increasing the flow of information to the Cuban
people. Consistent with that initiative, OFAC is adding new Sec.
515.578 to the CACR to authorize the exportation from the United States
or by persons subject to U.S. jurisdiction to persons in Cuba of
certain services incident to the exchange of personal communications
[[Page 10999]]
over the Internet, such as instant messaging, chat and email, social
networking, sharing of photos and movies, web browsing, and blogging.
To qualify for this authorization, the services must be publicly
available at no cost to the user. New Sec. 515.578 does not authorize
the direct or indirect exportation of services with knowledge or reason
to know that such services are intended for a prohibited official of
the Government of Cuba, as defined in Sec. 515.337 of the CACR, or a
prohibited member of the Cuban Communist Party, as defined in Sec.
515.338.
Like the new authorization sections added to the SSR and ITR, new
Sec. 515.578 contains a statement of licensing policy in addition to
the general license authorizing the exportation of certain Internet-
based personal communications services. Paragraph (c) of Sec. 515.578
provides that specific licenses may be issued on a case-by-case basis
for the exportation of services not covered by the general license that
are incident to the sharing of information over the Internet.
The new general license for Cuba, unlike those for Sudan and Iran,
does not include an authorization for the exportation of software,
because the exportation of goods and technology, including software, to
Cuba is separately licensed or otherwise authorized by Commerce under
the EAR. Section 515.533 of the CACR generally licenses all
transactions ordinarily incident to the exportation of items from the
United States, or the reexportation of 100% U.S.-origin items from a
third country, to any person in Cuba, provided the exportation or
reexportation is licensed or otherwise authorized by Commerce under the
EAR, and provided further that only certain specified payment and
financing terms may be used.
By the addition of the authorizations described above to the SSR,
ITR, and CACR, OFAC hopes to encourage the exchange of personal
communications over the Internet by persons in Sudan, Iran, and Cuba.
Public Participation
Because the amendments of the CACR, SSR, and ITR 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, SSR, and ITR
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
31 CFR Part 515
Banks, Banking, Communications, Cuba, Exports, Foreign trade.
31 CFR Part 538
Banks, Banking, Communications, Exports, Foreign trade, Sudan.
31 CFR Part 560
Banks, Banking, Communications, Exports, Foreign trade, Iran.
0
For the reasons set forth in the preamble, the Department of the
Treasury's Office of Foreign Assets Control amends 31 CFR parts 515,
538, and 560 as follows:
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; 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. Add a new Sec. 515.578 to subpart E to read as follows:
Sec. 515.578 Exportation of certain services incident to Internet-
based communications.
(a) Except as provided in paragraph (b) of this section, the
exportation from the United States or by persons subject to U.S.
jurisdiction to persons in Cuba of services incident to the exchange of
personal communications over the Internet, such as instant messaging,
chat and email, social networking, sharing of photos and movies, web
browsing, and blogging, is authorized, provided that such services are
publicly available at no cost to the user.
(b) This section does not authorize:
(1) The direct or indirect exportation of services with knowledge
or reason to know that such services are intended for a prohibited
official of the Government of Cuba, as defined in Sec. 515.337 of this
part, or a prohibited member of the Cuban Communist Party, as defined
in Sec. 515.338 of this part.
(2) The direct or indirect exportation of Internet connectivity
services or telecommunications transmission facilities (such as
satellite links or dedicated lines).
Note to Sec. 515.578(b)(2): For general licenses related to
the provision of telecommunications services between the United
States and Cuba and contracts for telecommunications services
provided to particular individuals in Cuba, see Sec. 515.542(b) and
Sec. 515.542(c), respectively, of this part. For a general license
and a statement of specific licensing policy related to the
establishment of telecommunications facilities linking the United
States or third countries and Cuba, see Sec. 515.542(d) of this
part.
(3) The direct or indirect exportation of web-hosting services that
are for purposes other than personal communications (e.g., web-hosting
services for commercial endeavors) or of domain name registration
services.
(4) The direct or indirect exportation of any items to Cuba.
Note to Sec. 515.578(b)(4): For the rules related to
transactions ordinarily incident to the exportation or reexportation
of items, including software, to Cuba, see Sec. Sec. 515.533 and
515.559 of this part.
(c) Specific licenses may be issued on a case-by-case basis for the
exportation of other services incident to the sharing of information
over the Internet.
PART 538--SUDANESE SANCTIONS REGULATIONS
0
3. The authority citation for part 538 is revised to read as follows:
Authority: 3 U.S.C. 301; 18 U.S.C. 2339B, 2332d; 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); 22 U.S.C. 7201-7211; Pub. L. 109-344, 120
Stat. 1869; Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note);
E.O. 13067, 62 FR 59989, 3 CFR, 1997 Comp., p. 230; E.O. 13412, 71
FR 61369, 3 CFR, 2006 Comp., p. 244.
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
0
4. Add a new Sec. 538.533 to subpart E to read as follows:
[[Page 11000]]
Sec. 538.533 Exportation of certain services and software incident to
Internet-based communications.
(a) To the extent that such transactions are not exempt from the
prohibitions of this part and subject to the restrictions set forth in
paragraph (b) of this section, the following transactions are
authorized:
(1) The exportation from the United States or by U.S. persons,
wherever located, to persons in Sudan of services incident to the
exchange of personal communications over the Internet, such as instant
messaging, chat and email, social networking, sharing of photos and
movies, web browsing, and blogging, provided that such services are
publicly available at no cost to the user.
(2) The exportation from the United States or by U.S. persons,
wherever located, to persons in Sudan of software necessary to enable
the services described in paragraph (a)(1) of this section, provided
that such software is classified as ``EAR99'' under the Export
Administration Regulations, 15 CFR parts 730 through 774 (the ``EAR''),
is not subject to the EAR, or is classified by the U.S. Department of
Commerce (``Commerce'') as mass market software under export control
classification number (``ECCN'') 5D992 of the EAR, and provided further
that such software is publicly available at no cost to the user.
(b) This section does not authorize:
(1) The direct or indirect exportation of services or software with
knowledge or reason to know that such services or software are intended
for the Government of Sudan.
(2) The direct or indirect exportation of any goods or technology
listed on the Commerce Control List in the EAR, 15 CFR part 774,
supplement No. 1 (``CCL''), except for software necessary to enable the
services described in paragraph (a)(1) of this section that is
classified by Commerce as mass market software under ECCN 5D992 of the
EAR.
(3) The direct or indirect exportation of Internet connectivity
services or telecommunications transmission facilities (such as
satellite links or dedicated lines).
(4) The direct or indirect exportation of web-hosting services that
are for purposes other than personal communications (e.g., web-hosting
services for commercial endeavors) or of domain name registration
services.
(c) Specific licenses may be issued on a case-by-case basis for the
exportation of other services and software incident to the sharing of
information over the Internet, provided the software is classified as
``EAR99,'' not subject to the EAR, or classified by Commerce as mass
market software under ECCN 5D992 of the EAR.
(d) Nothing in this section or in any license issued pursuant to
paragraph (c) of this section relieves the exporter from compliance
with the export license application requirements of another Federal
agency.
PART 560--IRANIAN TRANSACTIONS REGULATIONS
0
5. The authority citation for part 560 is revised 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); 22 U.S.C. 7201-7211;
Pub. L. 110-96, 121 Stat. 1011 (50 U.S.C. 1705 note); 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.
356; E.O. 13059, 62 FR 44531, 3 CFR, 1997 Comp., p. 217.
Subpart E--Licensing, Authorizations, and Statements of Licensing
Policy
0
6. Add a new Sec. 560.540 to subpart E to read as follows:
Sec. 560.540 Exportation of certain services and software incident to
Internet-based communications.
(a) To the extent that such transactions are not exempt from the
prohibitions of this part and subject to the restrictions set forth in
paragraph (b) of this section, the following transactions are
authorized:
(1) The exportation from the United States or by U.S. persons,
wherever located, to persons in Iran of services incident to the
exchange of personal communications over the Internet, such as instant
messaging, chat and email, social networking, sharing of photos and
movies, web browsing, and blogging, provided that such services are
publicly available at no cost to the user.
(2) The exportation from the United States or by U.S. persons,
wherever located, to persons in Iran of software necessary to enable
the services described in paragraph (a)(1) of this section, provided
that such software is classified as ``EAR99'' under the Export
Administration Regulations, 15 CFR parts 730 through 774 (the ``EAR''),
is not subject to the EAR, or is classified by the U.S. Department of
Commerce (``Commerce'') as mass market software under export control
classification number (``ECCN'') 5D992 of the EAR, and provided further
that such software is publicly available at no cost to the user.
(b) This section does not authorize:
(1) The direct or indirect exportation of services or software with
knowledge or reason to know that such services or software are intended
for the Government of Iran.
(2) The direct or indirect exportation of any goods or technology
listed on the Commerce Control List in the EAR, 15 CFR part 774,
supplement No. 1 (``CCL''), except for software necessary to enable the
services described in paragraph (a)(1) of this section that is
classified by Commerce as mass market software under ECCN 5D992 of the
EAR.
(3) The direct or indirect exportation of Internet connectivity
services or telecommunications transmission facilities (such as
satellite links or dedicated lines).
(4) The direct or indirect exportation of web-hosting services that
are for purposes other than personal communications (e.g., web-hosting
services for commercial endeavors) or of domain name registration
services.
(c) Specific licenses may be issued on a case-by-case basis for the
exportation of other services and software incident to the sharing of
information over the Internet, provided the software is classified as
``EAR99,'' not subject to the EAR, or classified by Commerce as mass
market software under ECCN 5D992 of the EAR.
Dated: March 3, 2010.
Adam J. Szubin,
Director, Office of Foreign Assets Control.
[FR Doc. 2010-5023 Filed 3-8-10; 10:00 am]
BILLING CODE 4810-AL-P
