Cuban Assets Control Regulations, 4583-4586 [2016-01559]

Agencies

• DEPARTMENT OF THE TREASURY
• Office of Foreign Assets Control

[Federal Register Volume 81, Number 17 (Wednesday, January 27, 2016)]
[Rules and Regulations]
[Pages 4583-4586]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-01559]


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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 
further implement elements of the policy announced by the President on 
December 17, 2014 to engage and empower the Cuban people. These 
amendments remove certain payment and financing restrictions for 
authorized exports and reexports to Cuba of items other than 
agricultural items or commodities and further facilitate travel to Cuba 
for authorized purposes by allowing blocked space, code-sharing, and 
leasing arrangements with Cuban airlines and authorizing additional 
travel-related and other transactions directly incident to the 
temporary sojourn of aircraft and vessels. These amendments also 
authorize additional transactions related to professional meetings and 
other events, disaster preparedness and response projects, and 
information and informational materials, including transactions 
incident to professional media or artistic productions in Cuba.

DATES: Effective: January 27, 2016.

FOR FURTHER INFORMATION CONTACT: The Department of the Treasury's 
Office of Foreign Assets Control: Assistant Director for Licensing, 
tel.: 202-622-2480, Assistant Director for Regulatory Affairs, tel.: 
202-622-4855, Assistant Director for Sanctions Compliance & Evaluation, 
tel.: 202-622-2490; or the Department of the Treasury's Office of the 
Chief Counsel (Foreign Assets Control), Office of the General Counsel, 
tel.: 202-622-2410.

SUPPLEMENTARY INFORMATION:

Electronic and Facsimile Availability

    This document and additional information concerning OFAC are 
available from OFAC's Web site (www.treasury.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

    The Department of the Treasury issued the Cuban Assets Control 
Regulations, 31 CFR part 515 (the ``Regulations''), on July 8, 1963, 
under the Trading With the Enemy Act (50 U.S.C. App. 5 et seq.). OFAC 
has amended the Regulations on numerous occasions.
    Most recently, on January 16 and September 21, 2015, OFAC amended 
the Regulations, in coordinated actions with the Department of 
Commerce, to implement certain policy measures announced by the 
President on December 17, 2014 to further engage and empower the Cuban 
people. Today, OFAC and the Department of Commerce are taking 
additional coordinated actions in support of the President's Cuba 
policy.
    The Department of Commerce is amending the exceptions to the 
general policy of denial in the Export Administration Regulations (EAR) 
for exports and reexports to Cuba by identifying additional types of 
exports and reexports that are subject to a general policy of approval, 
including items for safety of civil aviation and safe operation of 
commercial aircraft engaged in international air transportation. 
Commerce is also amending the exception to the general policy of denial 
in the EAR for exports and reexports to Cuba by identifying types of 
exports and reexports that will be reviewed to determine, on a case-by-
case basis, whether such transactions meet the needs of the Cuban 
People.
    OFAC is making additional amendments to the Regulations with 
respect to non-agricultural export trade financing and travel and 
related services, as set forth below.

Non-Agricultural Export Trade Financing

    OFAC is amending section 515.533(a) to remove the former 
limitations on payment and financing terms for all exports from the 
United States or reexports of 100 percent U.S.-origin items from a 
third country that are licensed or otherwise authorized by the 
Department of Commerce, other than exports of agricultural items or 
commodities. As required by the Trade

[[Page 4584]]

Sanctions Reform and Export Enhancement Act of 2000, 22 U.S.C. 
7207(b)(1), such agricultural exports continue to be authorized only if 
one of the payment and financing terms specified in the statute are 
used. OFAC also is amending section 515.584 to add an authorization for 
depository institutions to provide financing for such authorized 
exports and making a conforming change to section 515.421.

Travel and Related Services

    Carrier services by air. In parallel with the Department of 
Commerce's amendments relating to the safety of civil aviation, OFAC is 
amending section 515.572 to authorize the entry into blocked space, 
code-sharing, and leasing arrangements to facilitate the provision of 
carrier services by air authorized pursuant to section 515.572(a)(2), 
including the entry into such arrangements with a national of Cuba.
    Temporary sojourn. OFAC is amending section 515.533 to authorize 
travel-related and other transactions directly incident to the 
facilitation of the temporary sojourn of aircraft and vessels as 
authorized by the Department of Commerce for travel between the United 
States and Cuba, including by certain personnel required for normal 
operation and service on board a vessel or aircraft or to provide 
services to a vessel in port or aircraft on the ground.
    Transactions related to information and informational materials. 
OFAC is amending section 515.545 to expand the general license 
authorizing travel-related and other transactions that are directly 
incident to the export, import, or transmission of informational 
materials to include professional media or artistic productions in 
Cuba. Such productions include media programs (such as movies and 
television programs), music recordings, and the creation of artworks. 
OFAC is removing a restriction in an existing general license and 
explicitly authorizing transactions relating to the creation, 
dissemination, or artistic or other substantive alteration or 
enhancement of informational materials, including employment of Cuban 
nationals and the remittance of royalties or other payments. OFAC also 
is making a conforming change to section 515.206.
    Professional meetings. OFAC is amending section 515.564 to 
authorize travel-related and other transactions to organize 
professional meetings or conferences in Cuba.
    Public performances, clinics, workshops, athletic and other 
competitions, and exhibitions. OFAC is amending section 515.567 to 
authorize travel-related and other transactions to organize amateur and 
semi-professional international sports federation competitions and 
public performances, clinics, workshops, other athletic or non-athletic 
competitions, and exhibitions in Cuba. OFAC is also removing the 
existing requirements for certain events that all U.S. profits from the 
event after costs be donated to an independent nongovernmental 
organization in Cuba or a U.S.-based charity and that workshops and 
clinics be organized and run, at least in part, by the authorized 
traveler.
    Humanitarian projects. OFAC is amending section 515.575 to expand 
the list of authorized humanitarian projects to include disaster 
preparedness and response.

Public Participation

    Because the amendments of the Regulations 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 Regulations are 
contained in 31 CFR part 501 (the ``Reporting, Procedures and Penalties 
Regulations'') and section 515.572 of this part. Pursuant to the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3507), those collections of 
information are covered by the Office of Management and Budget under 
control numbers 1505-0164, 1505-0167, and 1505-0168. 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, Banking, Carrier services, 
Cuba, Financial transactions, Reporting and recordkeeping requirements, 
Travel restrictions.

    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 continues to read as follows:

    Authority: 22 U.S.C. 2370(a), 6001-6010, 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. 6021-
6091); 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 B--Prohibitions

0
2. Amend Sec.  515.206 by removing Examples #1-4 and adding a Note to 
paragraph (a) to read as follows:


Sec.  515.206  Exempt transactions.

* * * * *

    Note to paragraph (a): See Sec.  515.545 for general licenses 
authorizing certain travel-related and other transactions that are 
directly incident to the export, import, or transmission of 
informational materials and certain transactions related to the 
creation, dissemination, or artistic or other substantive alteration 
or enhancement of informational materials.

* * * * *

Subpart D--Interpretations

0
3. Amend Sec.  515.421 by revising paragraph (a)(4) to read as follows:


Sec.  515.421  Transactions ordinarily incident to a licensed 
transaction.

    (a) * * *
    (4) In the case of export or reexport-related transactions 
authorized by Sec.  515.533(a), payment or financing that is not 
authorized by Sec.  515.533 or Sec.  515.584(f).
* * * * *

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

0
4. Amend Sec.  515.533 by revising the introductory text to paragraph 
(a)(2), redesignating the note to paragraph (a) as Note 1 to paragraph 
(a), adding Note 2 to paragraph (a), and revising paragraph (d) to read 
as follows:


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

    (a) * * *
    (2) In the case of agricultural commodities, as that term is 
defined in 15 CFR part 772, or agricultural items authorized for export 
or reexport

[[Page 4585]]

pursuant to 15 CFR 746.2(b)(2)(iv), only the following payment and 
financing terms may be used:
* * * * *

    Note 2 to paragraph (a): The limitation in paragraph (a)(2) 
applies only to payment and financing terms for exports or reexports 
of agricultural items or commodities and is required by the Trade 
Sanctions Reform and Export Enhancement Act of 2000, 22 U.S.C. 
7207(b)(1). For other authorized exports and reexports, paragraph 
(a) does not restrict payment and financing terms. See Sec.  515.584 
for an authorization for depository institutions to provide 
financing for authorized exports and reexports of items other than 
agricultural items or commodities.

* * * * *
    (d) General license for travel-related transactions incident to 
exportation or reexportation of certain items. (1) The travel-related 
transactions set forth in Sec.  515.560(c) and such additional 
transactions as are directly incident to the conduct of market 
research, commercial marketing, sales or contract negotiation, 
accompanied delivery, installation, leasing, or servicing in Cuba of 
items consistent with the export or reexport licensing policy of the 
Department of Commerce are authorized, provided that the traveler's 
schedule of activities does not include free time or recreation in 
excess of that consistent with a full-time schedule.
    (2) The travel-related transactions set forth in Sec.  515.560(c) 
and such additional transactions as are directly incident to the 
facilitation of the temporary sojourn of aircraft and vessels as 
authorized by 15 CFR 740.15 (License Exception Aircraft, Vessels and 
Spacecraft) or pursuant to other authorization by the Department of 
Commerce for travel between the United States and Cuba authorized 
pursuant to this part, including travel-related transactions by 
personnel who are persons subject to U.S. jurisdiction and who are 
required for normal operation and service on board a vessel or 
aircraft, as well as personnel who are persons subject to U.S. 
jurisdiction and who are required to provide services to a vessel in 
port or aircraft on the ground, provided that:
    (i) The aircraft or vessel must be transporting individuals whose 
travel between the United States and Cuba is authorized pursuant to any 
section of this part other than paragraph (d)(2) of this section; and
    (ii) Such travel-related transactions by such personnel are limited 
to the duration and scope of their duties in relation to the particular 
authorized temporary sojourn.
* * * * *

0
5. Amend Sec.  515.545 by revising paragraphs (a) and (b), 
redesignating the Note to Sec.  515.545 as Note 1 to Sec.  515.545, and 
adding Note 2 to Sec.  515.545 to read as follows:


Sec.  515.545  Transactions related to information and informational 
materials.

    (a) Transactions relating to the creation, dissemination, artistic 
or other substantive alteration, or enhancement of informational 
materials are authorized, including employment of Cuban nationals and 
remittance of royalties or other payments in connection with such 
transactions. This section authorizes marketing related to the 
dissemination of such informational materials but does not authorize 
other marketing or business consulting services.
    (b) General license. (1) The travel-related transactions set forth 
in Sec.  515.560(c) and such additional transactions as are directly 
incident to the exportation, importation, or transmission of 
information or informational materials as defined in Sec.  515.332 are 
authorized, provided that the traveler's schedule of activities does 
not include free time or recreation in excess of that consistent with a 
full-time schedule.
    (2) The travel-related transactions set forth in Sec.  515.560(c) 
and such additional transactions as are directly incident to 
professional media or artistic productions of information or 
informational materials for exportation, importation, or transmission, 
including the filming or production of media programs (such as movies 
and television programs), the recording of music, and the creation of 
artworks in Cuba, are authorized, provided that the traveler is 
regularly employed in or has demonstrated professional experience in a 
field relevant to such professional media or artistic productions, and 
that the traveler's schedule of activities does not include free time 
or recreation in excess of that consistent with a full-time schedule.
* * * * *

    Note 2 to Sec.  515.545: See Sec.  515.332(a)(2) for 
clarification as to the types of artworks that are considered to be 
informational materials.


0
6. Amend Sec.  515.564 by revising the introductory text to paragraph 
(a)(2), paragraph (a)(2)(ii), and paragraph (a)(2)(iv) and adding a 
note to paragraph (a)(2) to read as follows:


Sec.  515.564  Professional research and professional meetings in Cuba.

    (a) * * *
    (2) Professional meetings. The travel-related transactions set 
forth in Sec.  515.560(c) and such additional transactions as are 
directly incident to travel to Cuba to attend or organize professional 
meetings or conferences in Cuba are authorized, provided that:
* * * * *
    (ii) For a traveler:
    (A) Attending a professional meeting or conference, the purpose of 
the meeting or conference directly relates to the traveler's 
profession, professional background, or area of expertise, including 
area of graduate-level full-time study;
    (B) Organizing a professional meeting or conference on behalf of an 
entity, either the traveler's profession must be related to the 
organization of professional meetings or conferences or the traveler 
must be an employee or contractor of an entity that is organizing the 
professional meeting or conference.
* * * * *
    (iv) The traveler's schedule of activities does not include free 
time or recreation in excess of that consistent with a full-time 
schedule of attendance at, or organization of, professional meetings or 
conferences.

    Note to Sec.  515.564(a)(2): Transactions incident to the 
organization of professional meetings or conferences include 
marketing related to such meetings or conferences in Cuba.

* * * * *

0
7. Amend Sec.  515.567 by revising the introductory text to paragraph 
(a), revising paragraph (b), redesignating the Note to Sec.  515.567(a) 
and (b) as Note 1 to Sec.  515.567(a) and (b), and adding Note 2 to 
Sec.  515.567(a) and (b) to read as follows:


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

    (a) General license for amateur and semi-professional international 
sports federation competitions. The travel-related transactions set 
forth in Sec.  515.560(c) and such other transactions as are directly 
incident to participation in athletic competitions in Cuba by amateur 
or semi-professional athletes or athletic teams, or organization of 
such competitions, are authorized, provided that:
* * * * *
    (b) General license for public performances, clinics, workshops, 
other athletic or non-athletic competitions, and exhibitions. The 
travel-related transactions set forth in Sec.  515.560(c) and such 
other transactions as are directly incident to participation in or 
organization of a public performance, clinic, workshop, athletic 
competition not covered by paragraph (a) of this section, non-athletic 
competition, or exhibition in Cuba by participants in or

[[Page 4586]]

organizers of such activities are authorized, provided that the event 
is open for attendance, and in relevant situations participation, by 
the Cuban public.

    Example 1 to Sec.  515.567(a) and (b): An amateur baseball team 
wishes to travel to Cuba to compete against a Cuban team in a 
baseball game in Cuba. The game will not be held under the auspices 
of the international sports federation for baseball. The baseball 
team's activities therefore would not qualify for the general 
license in paragraph (a). The game will, however, be open to the 
Cuban public. The baseball team's activities would qualify for the 
general license in paragraph (b).
    Example 2 to Sec.  515.567(a) and (b): A U.S. concert promoter 
wishes to organize a musical event in Cuba that would be open to the 
public and feature U.S. musical groups. The organizing of the 
musical event in Cuba by the U.S. concert promoter and the 
participation by U.S. musical groups in the event would qualify for 
the general license in paragraph (b).
* * * * *

    Note 2 to Sec.  515.567(a) and (b): Transactions incident to the 
organization of amateur and semi-professional international sports 
federation competitions and public performances, clinics, workshops, 
other athletic or non-athletic competitions, and exhibitions include 
marketing related to such events in Cuba.

* * * * *

0
8. Amend Sec.  515.572 by revising paragraph (a)(2) and the 
introductory text to the Note to Sec.  515.572 to read as follows:


Sec.  515.572  Authorization to provide travel services, carrier 
services, and remittance forwarding services.

    (a) * * *
    (2) Authorization to provide carrier services. (i) Persons subject 
to U.S. jurisdiction are authorized to provide carrier services to, 
from, or within Cuba in connection with travel or transportation, 
directly or indirectly, between the United States and Cuba of persons, 
baggage, or cargo authorized pursuant to this part.
    (ii) The entry into blocked space, code-sharing, or leasing 
arrangements to facilitate the provision of carrier services by air 
authorized pursuant to section 515.572(a)(2) is authorized, including 
the entry into such arrangements with a national of Cuba.
* * * * *

    Note to Sec.  515.572: The following persons may be transported, 
directly or indirectly, between the United States and Cuba by a 
person authorized to provide carrier services:

* * * * *

0
9. Amend Sec.  515.575 by revising paragraph (b) to read as follows:


Sec.  515.575  Humanitarian projects.

* * * * *
    (b) Authorized humanitarian projects. The following projects are 
authorized by paragraph (a) of this section: Medical and health-related 
projects; construction projects intended to benefit legitimately 
independent civil society groups; disaster preparedness, relief, and 
response; historical preservation; environmental projects; projects 
involving formal or non-formal educational training, within Cuba or 
off-island, on the following topics: Entrepreneurship and business, 
civil education, journalism, advocacy and organizing, adult literacy, 
or vocational skills; community-based grassroots projects; projects 
suitable to the development of small-scale private enterprise; projects 
that are related to agricultural and rural development that promote 
independent activity; microfinancing projects, except for loans, 
extensions of credit, or other financing prohibited by Sec.  515.208; 
and projects to meet basic human needs.
* * * * *

0
10. Amend Sec.  515.584 by adding paragraph (f) to read as follows:


Sec.  515.584  Certain financial transactions involving Cuba.

* * * * *
    (f) Depository institutions, as defined in Sec.  515.333, are 
authorized to provide financing for exports or reexports of items, 
other than agricultural items or commodities, authorized pursuant to 
Sec.  515.533, including issuing, advising, negotiating, paying, or 
confirming letters of credit (including letters of credit issued by a 
financial institution that is a national of Cuba), accepting collateral 
for issuing or confirming letters of credit, and processing documentary 
collections.

    Dated: January 21, 2016.
John E. Smith,
Acting Director, Office of Foreign Assets Control.
[FR Doc. 2016-01559 Filed 1-26-16; 8:45 am]
BILLING CODE 4810-AL-P