Cuban Assets Control Regulations, 71372-71378 [2016-25032]

Agencies

• DEPARTMENT OF THE TREASURY
• Office of Foreign Assets Control

[Federal Register Volume 81, Number 200 (Monday, October 17, 2016)]
[Rules and Regulations]
[Pages 71372-71378]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-25032]



[[Page 71372]]

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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. Among other 
things, these amendments authorize certain transactions related to 
Cuban-origin pharmaceuticals and joint medical research; add, expand, 
and clarify authorizations relating to trade and commerce; authorize 
certain civil aviation safety-related services; further facilitate 
authorized travel to Cuba; and expand the authorizations for grants and 
humanitarian-related services designed to directly benefit the Cuban 
people. These amendments also implement certain technical and 
conforming changes. OFAC is making these amendments in support of the 
process of normalizing bilateral relations with Cuba.

DATES: Effective: October 17, 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 Availability

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

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. 4301-4341). OFAC has 
amended the Regulations on numerous occasions.
    Most recently, on January 16, June 15, and September 21, 2015, and 
January 27 and March 16, 2016, 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.
    OFAC is making additional amendments to the Regulations with 
respect to health, trade and commerce, civil aviation safety, travel 
and related transactions, humanitarian-related activities, and certain 
other activities, as set forth below.

Health

    Joint medical research. OFAC is amending section 515.547 to 
authorize persons subject to U.S. jurisdiction to engage in joint 
medical research projects with Cuban nationals. This general license 
expands the scope of joint research projects that are authorized to 
include both non-commercial and commercial medical research.
    Cuban-origin pharmaceuticals. OFAC is also amending section 515.547 
to add new authorizations related to Cuban-origin pharmaceuticals. 
Specifically, section 515.547 now authorizes transactions incident to 
obtaining approval from the U.S. Food and Drug Administration (FDA) of 
Cuban-origin pharmaceuticals. The general license includes discovery 
and development, pre-clinical research, clinical research, regulatory 
review, regulatory approval and licensing, regulatory post-market 
activities, and the importation into the United States of Cuban-origin 
pharmaceuticals. Section 515.547 also now authorizes the importation 
into the United States, and the marketing, sale, or other distribution 
in the United States, of FDA-approved Cuban-origin pharmaceuticals.
    In addition, revised section 515.547 authorizes persons subject to 
U.S. jurisdiction who are engaging in such authorized activities to 
open, maintain, and close bank accounts at Cuban financial institutions 
as long as such accounts are used solely for the authorized activities. 
The statement of licensing policy previously contained in section 
515.547 for the importation of Cuban-origin commodities for bona-fide 
research purposes in sample quantities remains in effect for items that 
would not be authorized by the new general license in section 
515.547(b).

Trade and Commerce

    Transactions incident to exports and reexports to Cuba. Section 
515.533(a) of the Regulations authorizes transactions ordinarily 
incident to certain exportations of items from the United States, as 
well as certain reexportations of items from a third country, to Cuba, 
provided that the exportations or reexportations are authorized by the 
Department of Commerce. OFAC is removing references to ``100% U.S.-
origin items'' in this section for clarity and to minimize the 
circumstances under which persons authorized by Commerce to export or 
reexport items to Cuba are required to obtain a specific license from 
OFAC. Consistent with Section 1706 of the Cuban Democracy Act of 1992 
(22 U.S.C. 6005) (CDA), this general license does not authorize any 
transaction between a U.S.-owned or -controlled firm in a third country 
and Cuba for the exportation to Cuba of commodities produced in a 
country other than the United States or Cuba. Such transactions must be 
specifically licensed pursuant to section 515.559 in addition to any 
required authorization from the Department of Commerce. There are also 
restrictions imposed by the CDA on the types of transactions that may 
be licensed pursuant to that section.
    OFAC is also making a technical correction to section 515.533(a) to 
remove references to ``agricultural items'' so that only ``agricultural 
commodities,'' as defined in 15 CFR part 772, are subject to the 
limitations on payment and financing terms required by the Trade 
Sanctions Reform and Export Enhancement Act of 2000, 22 U.S.C. 
7207(b)(1). OFAC is making a conforming edit with respect to section 
515.584(f) and also expanding that authorization to apply to any 
banking institution.
    Finally, OFAC is adding a note to section 515.533(a) to clarify 
that this paragraph authorizes the importation into the United States 
of items from a third country for exportation to Cuba pursuant to a 
license or other authorization by the Department of Commerce. OFAC is 
making additional technical and conforming changes to remove certain 
obsolete language and consolidate all of the conditions applicable to 
this general license in a single paragraph.
    Importation of certain items previously exported or reexported to 
Cuba and servicing and repair of such items. OFAC is further amending 
section 515.533 to add a new general license authorizing the 
importation into the United States or a third country of items 
previously exported or reexported to Cuba pursuant to section 515.533 
or 515.559. This authorization will allow recipients of authorized 
exports or reexports to Cuba to return the items to

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the United States or a third country, including for service and repair. 
Irrespective of involvement in the importation of these items, persons 
subject to U.S. jurisdiction are authorized to service and repair such 
items. The exportation or reexportation of serviced, repaired, or 
replacement items to Cuba, however, must be separately authorized 
pursuant to section 515.533(a) or 515.559, in addition to any 
Department of Commerce authorization that may be required.
    Certain vessel transactions. Section 515.207(a) prohibits foreign 
vessels that call on Cuban ports for trade purposes from entering U.S. 
ports for the purpose of loading or unloading freight for 180 days from 
the date they depart Cuba, absent OFAC authorization. OFAC is amending 
section 515.550 to add an additional exception to the prohibition in 
section 515.207(a) for foreign vessels that have carried from a third 
country to Cuba only items that, were they subject to the Export 
Administration Regulations (15 CFR parts 730 through 774) (EAR), would 
be designated as EAR99 or would be controlled on the Commerce Control 
List only for anti-terrorism reasons.
    Contingent contracts. OFAC is adding a new general license in 
section 515.534 authorizing persons subject to U.S. jurisdiction to 
enter into certain contingent contracts for transactions prohibited by 
the Regulations and to engage in transactions ordinarily incident to 
negotiating and entering into such contracts. The performance of such 
contracts--making deposits, receiving payments, providing certain 
services or goods, etc.--must be made contingent on OFAC authorizing 
the underlying transactions or authorization no longer being required. 
Furthermore, if the transaction implicates another Federal agency's 
licensing requirements, then the contract must make obtaining the 
necessary license(s) from such agency or the removal of that licensing 
requirement an additional precondition of performance. OFAC is making a 
conforming change to section 515.533 to remove a provision in that 
section authorizing certain contingent contracts that are now 
authorized by this new general license.

Civil Aviation Safety

    Civil aviation safety-related services. OFAC is amending section 
515.572 to add a new general license authorizing persons subject to 
U.S. jurisdiction to provide Cuba and Cuban nationals, wherever 
located, with services aimed at ensuring safety in civil aviation and 
the safe operation of commercial aircraft.

Travel and Related Transactions

    OFAC is making several changes to rules related to the importation 
of Cuban-origin merchandise as accompanied baggage and certain travel-
related authorizations.
    Importation of Cuban merchandise. Section 515.560 previously 
authorized persons subject to U.S. jurisdiction engaging in authorized 
travel to Cuba to acquire merchandise in Cuba and import it into the 
United States as accompanied baggage, provided that the merchandise was 
for personal use only and had a value of $400 or less (with no more 
than $100 of such merchandise consisting of alcohol or tobacco 
products). OFAC is now removing these monetary value limits, which 
means that the normal limits on duty and tax exemptions for merchandise 
imported as accompanied baggage and for personal use will apply. OFAC 
will continue to require that such merchandise be imported as 
accompanied baggage and for personal use.
    Certain transactions in third countries. Previously, section 
515.585 authorized persons who are subject to U.S. jurisdiction but 
located in countries other than the United States or Cuba to, among 
other things, purchase or acquire merchandise subject to the 
prohibitions in section 515.204 provided that the merchandise was for 
personal consumption while in a third country. OFAC is amending section 
515.585 to remove the limitation that the merchandise be consumed while 
abroad, to authorize the importation of such merchandise into the 
United States as accompanied baggage provided that the merchandise is 
for personal use only, and to clarify that this authorization is 
applicable to persons subject to U.S. jurisdiction who are present in a 
third country, such as when traveling in or through the third country.
    Foreign passengers' baggage. Previously, section 515.569 authorized 
foreign passengers to import Cuban-origin goods, excluding Cuban-origin 
alcohol and tobacco products, as accompanied baggage, provided that the 
goods were not in commercial quantities and not imported for resale. 
OFAC is now removing the exclusion for alcohol and tobacco products 
while retaining the conditions that the goods not be in commercial 
quantities and not be imported for resale.
    Professional research and professional meetings in Cuba. Section 
515.564 includes a general license authorizing persons subject to U.S. 
jurisdiction to travel to Cuba for purposes of attending or organizing 
professional meetings or conferences in Cuba. Today, OFAC is removing 
the restriction in section 515.564(a)(2)(i) that the purpose of such 
meeting or conference not be for the promotion of tourism in Cuba, and 
making additional conforming edits. OFAC is also taking this 
opportunity to clarify section 515.564 by removing paragraphs 
(a)(1)(ii) and (a)(2)(iii), which included language inconsistent with 
adjacent paragraphs.
    Remittances for third-country national travel. OFAC is amending 
section 515.570 to authorize persons subject to the jurisdiction of the 
United States to make remittances to third-country nationals for travel 
by third-country nationals to, from, and within Cuba, provided that 
such travel would be authorized by a general license if the traveler 
were a person subject to U.S. jurisdiction. OFAC is also making a 
clarifying change in section 515.420 to make clear that the 
interpretation in that section relates only to persons subject to U.S. 
jurisdiction.
    Recordkeeping requirements for providers of travel and carrier 
services. In the case of customers traveling pursuant to a specific 
license, in order to ease the burden on persons subject to U.S. 
jurisdiction that provide authorized travel or carrier services 
pursuant to section 515.572, OFAC is amending section 515.572(b)(1) to 
make clear that such service providers may collect and retain either a 
copy of the traveler's specific license or the traveler's specific 
license number.

Humanitarian-Related Transactions

    Additional grants, scholarships, and awards. Sections 515.565 and 
515.575 previously authorized the provision of grants, scholarships, 
and awards in which Cuba or Cuban nationals have an interest (including 
as recipients) with respect to educational and humanitarian activities, 
respectively. OFAC is now expanding that authorization to authorize the 
provision of grants, scholarships, and awards in two additional 
categories of activities: scientific research and religious activities. 
OFAC is consolidating these authorizations in new section 515.590 and 
making conforming edits to sections 515.565 and 515.575.
    Services related to developing Cuban infrastructure. OFAC is adding 
section 515.591 to authorize persons subject to the jurisdiction of the 
United States to provide Cuba or Cuban nationals with services related 
to developing, repairing, maintaining, and enhancing Cuban

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infrastructure, consistent with the export or reexport licensing policy 
of the Department of Commerce. ``Infrastructure'' in this case means 
systems and assets used to provide the Cuban people with goods and 
services produced by the public transportation, water management, waste 
management, non-nuclear electricity generation, and electricity 
distribution sectors, as well as hospitals, public housing, and primary 
and secondary schools.

Other Amendments

    Definition of prohibited officials of the Government of Cuba and 
prohibited members of the Cuban Communist Party. OFAC is amending 
sections 515.337 and 515.338 to narrow the definitions in these 
sections.
    Additional technical and conforming edits. OFAC is also making 
several technical and conforming edits, including adjusting a cross-
reference in the note to section 515.421(a)(4) to reflect that the 
payment and financing terms for agricultural commodities are now 
located in section 515.533(a)(4); removing sections 515.531 and 515.803 
as obsolete; adding the word ``repair'' to the general licenses for 
certain travel-related transactions in sections 515.533 and 515.559 to 
clarify that travel for such purposes has been within the scope of the 
existing authorizations; removing paragraphs (a) and (b) of section 
515.536, as all activities described in such paragraphs are authorized 
by the general license in section 515.562 relating to official business 
of the U.S. government; correcting the cross-reference in section 
515.560(c)(6)(ii) to the definition of depository institution to be 
section 515.333; adding the words ``paragraphs (a)(1) through (a)(4)'' 
in the first sentence of section 515.572(b)(1) to clarify that records 
pertaining to passengers do not need to be maintained for transactions 
authorized pursuant to paragraph (a)(5) of section 515.572; removing a 
duplicative ``subject'' from Note 1 to section 515.578(a); and adding 
the word ``authorized'' to complete the sentence in section 515.584(c).

Public Participation

    Because the amendment of the Regulations involves a foreign affairs 
function, the provisions of Executive Order 12866 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 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 have been approved 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, Banks, Blocking of 
assets, Credit, Cuba, Financial transactions, Foreign trade, Reporting 
and recordkeeping requirements, Sanctions, Services, 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. 4301-4341; 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 C--General Definitions

0
2. Revise Sec.  515.337 to read as follows:


Sec.  515.337  Prohibited officials of the Government of Cuba.

    For purposes of this part, the term prohibited officials of the 
Government of Cuba means members of the Council of Ministers and flag 
officers of the Revolutionary Armed Forces.

0
3. Revise Sec.  515.338 to read as follows:


Sec.  515.338  Prohibited members of the Cuban Communist Party.

    For purposes of this part, the term prohibited members of the Cuban 
Communist Party means members of the Politburo.

Subpart D--Interpretations

0
4. Revise the second sentence of Sec.  515.420 to read as follows:


Sec.  515.420  Travel to Cuba.

    * * * The prohibition set forth in Sec.  515.201(b)(1) also 
prohibits payment for air travel by a person subject to U.S. 
jurisdiction to Cuba on a third-country carrier unless the travel is 
pursuant to an OFAC general or specific license.

0
5. Revise the note to Sec.  515.421(a)(4) to read as follows:


Sec.  515.421  Transactions ordinarily incident to a licensed 
transaction.

    (a) * * *
    (4) * * *

    Note to paragraph (a)(4):  See Sec.  515.533(a)(4) for payment 
and financing terms for exportations or reexportations authorized 
pursuant to Sec.  515.533.

* * * * *

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


Sec.  515.531   [Removed]

0
6. Remove Sec.  515.531 from subpart E.

0
7. Revise Sec.  515.533 to read as follows:


Sec.  515.533  Exportations from the United States to Cuba; 
reexportations to Cuba; importation and servicing or repair of certain 
items previously exported or reexported to Cuba.

    (a) All transactions ordinarily incident to the exportation of 
items from the United States, or the reexportation of items from a 
third country, to any person within Cuba are authorized, provided that:
    (1) The exportation or reexportation is licensed or otherwise 
authorized by the Department of Commerce under the provisions of the 
Export Administration Act of 1979, as amended (50 U.S.C. 4601-4623) 
(see the Export Administration Regulations, 15 CFR parts 730 through 
774);
    (2) The transaction is not a transaction between a U.S.-owned or -
controlled firm in a third country and Cuba for the exportation to Cuba 
of commodities produced in a country other than the United States or 
Cuba;
    (3) The transaction is not financed from any blocked account; and
    (4) In the case of agricultural commodities, as that term is 
defined in 15 CFR part 772, only the following payment and financing 
terms are used:
    (i) Payment of cash in advance. For the purposes of this section, 
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; or

[[Page 71375]]

    (ii) Financing by a banking institution located in a third country 
provided the banking institution is not a designated national, a U.S. 
citizen, a U.S. permanent resident alien, or an entity organized under 
the laws of the United States or any jurisdiction within the United 
States (including any foreign branch of such an entity). Such financing 
may be confirmed or advised by a U.S. banking institution.

    Note 1 to paragraph (a):  The transactions authorized by this 
paragraph include all transactions that are directly incident to the 
shipping of specific exports or reexports (e.g., insurance and 
transportation of the exports to Cuba). Transactions that are not 
tied to specific exports or reexports, such as transactions 
involving future (non-specific) shipments, must be separately 
licensed by OFAC. For the waiver of the prohibitions on entry into 
U.S. ports contained in Sec.  515.207 for vessels transporting 
shipments of items between the United States and Cuba pursuant to 
this section, see Sec.  515.550.


    Note 2 to paragraph (a): The limitation in paragraph (a)(4) 
applies only to payment and financing terms for exports or reexports 
of agricultural 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 banking institutions to provide financing for 
authorized exports and reexports of items other than agricultural 
commodities.


    Note 3 to paragraph (a): Transactions ordinarily incident to 
exportation from the United States authorized by this paragraph 
include the importation into the United States of items from a third 
country for exportation to Cuba pursuant to a license or other 
authorization by the Department of Commerce.


    Note 4 to paragraph (a):  See Sec.  515.534 for a general 
license authorizing certain contingent contracts, including 
contingent contracts for the sale of items that may be exported from 
the United States to Cuba or reexported from a third country to Cuba 
consistent with the export licensing policy of the Department of 
Commerce, where performance of such contingent contracts is 
expressly made contingent on prior authorization by the Department 
of Commerce.

    (b) Importation of certain items previously exported to Cuba; 
servicing and repair of such items. (1) All transactions ordinarily 
incident to the importation into the United States or a third country 
of items previously exported from the United States to Cuba or exported 
or reexported from a third country to Cuba, and the servicing and 
repair of such items, are authorized, provided that:
    (i) The items previously were exported or reexported to Cuba 
pursuant to paragraph (a) of this section or Sec.  515.559; and
    (ii) The items are being imported into the United States or a third 
country either:
    (A) In order to service or repair the items before they are 
exported or reexported back to Cuba, or
    (B) To return them to the United States or a third country.

    Note to paragraph (b):  This paragraph does not authorize the 
exportation or reexportation of any item to Cuba. The exportation or 
reexportation of serviced, repaired, or replacement items to Cuba 
must be separately authorized pursuant to paragraph (a) of this 
section or Sec.  515.559, in addition to any Department of Commerce 
authorization that may be required.

    (c) 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, servicing, or repair 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 authorized travel between the United States and Cuba, 
including travel-related transactions by persons subject to U.S. 
jurisdiction who are required for normal operation and service aboard a 
vessel or aircraft, as well as persons subject to U.S. jurisdiction who 
are required to provide services to a vessel in port or aircraft on the 
ground, are authorized, provided that:
    (i) Such travel-related transactions are limited to the duration 
and scope of their duties in relation to the particular authorized 
temporary sojourn; and
    (ii) 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 (c)(2) of this section.
    (d) Specific licenses. 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 other transactions as are related to the 
exportation and reexportation of items to Cuba when such transactions 
do not qualify for the general license under paragraph (c) of this 
section.

0
8. Add Sec.  515.534 to subpart E to read as follows:


Sec.  515.534  Negotiation of, and entry into, contingent contracts 
relating to transactions prohibited by this part.

    (a) Persons subject to the jurisdiction of the United States are 
authorized to enter into, and to engage in all transactions ordinarily 
incident to the negotiation of and entry into, contingent contracts for 
transactions that are prohibited by this part, provided that:
    (1) The performance of any such contingent contract is made 
expressly contingent on the prior authorization of the Office of 
Foreign Assets Control pursuant to this part or authorization no longer 
being required; and
    (2) The performance of any such contingent contract that is subject 
to licensing requirements of another Federal agency is expressly made 
contingent upon the prior authorization of that agency or the removal 
of those licensing requirements.
    (b) For purposes of this section, the term ``contingent contracts'' 
includes executory contracts, executory pro forma invoices, agreements 
in principle, executory offers capable of acceptance such as bids or 
proposals in response to public tenders, binding memoranda of 
understanding, or any other similar agreement.

    Note to Sec.  515.534:  This section does not authorize 
transactions related to travel to, from, or within Cuba. See Sec.  
515.533(c) for a general license authorizing travel-related and 
other transactions incident to the negotiation of contracts for the 
exportation or reexportation of certain items to Cuba, and Sec.  
515.564(a)(2) for a general license authorizing travel-related and 
other transactions incident to attending or organizing professional 
meetings in Cuba, which include professional meetings relating to 
the negotiation of contingent contracts authorized by this section.


0
9. Amend Sec.  515.536 by removing paragraphs (a) and (b), 
redesignating paragraphs (c) and (d) as (a) and (b), respectively, and 
revising redesignated paragraph (a) to read as follows:


Sec.  515.536  Certain transactions with respect to merchandise 
affected by Sec.  515.204.

    (a) The purchase outside the United States for importation into the 
United States of nickel-bearing materials presumptively subject to 
Sec.  515.204 and the importation of such merchandise into the United 
States are authorized if there is presented to the collector of

[[Page 71376]]

customs in connection with such importation the original of an 
appropriate certificate of origin as defined in paragraph (b) of this 
section and provided that the merchandise was shipped to the United 
States directly, or on a through bill of lading, from the country 
issuing the appropriate certificate of origin.
* * * * *

0
10. Amend Sec.  515.542 by revising Note 1 to Sec.  515.542 to read as 
follows:


Sec.  515.542  Mail and telecommunications-related transactions.

* * * * *

    Note 1 to Sec.  515.542:  For an authorization of travel-related 
transactions that are directly incident to the conduct of market 
research, commercial marketing, sales or contract negotiation, 
accompanied delivery, installation, leasing, servicing, or repair in 
Cuba of items consistent with the export or reexport policy of the 
Department of Commerce, see Sec.  515.533(c). For an authorization 
of travel-related transactions that are directly incident to 
participation in professional meetings, including where such 
meetings relate to telecommunications services or other activities 
authorized by paragraphs (b) through (e) of this section, see Sec.  
515.564(a).

* * * * *

0
11. Revise Sec.  515.547 to read as follows:


Sec.  515.547  Certain transactions related to medical research and 
Cuban-origin pharmaceuticals; research samples.

    (a) Persons subject to U.S. jurisdiction are authorized to engage 
in all transactions incident to joint medical research projects with 
Cuban nationals.

    Note 1 to paragraph (a):  The export or reexport to Cuba of 
goods (including software) or technology subject to the Export 
Administration Regulations (15 CFR parts 730 through 774) may 
require separate authorization from the Department of Commerce.


    Note 2 to paragraph (a):  This paragraph does not authorize 
transactions related to travel to, from, or within Cuba, nor does it 
authorize transactions related to travel to, from, or within the 
United States by Cuban nationals. See Sec.  515.564(a) for a general 
license authorizing travel-related and other transactions incident 
to professional research and professional meetings in Cuba. See 
Sec.  515.571 for a general license authorizing transactions 
incident to travel to, from, and within the United States by certain 
Cuban nationals.


    Note 3 to paragraph (a):  This paragraph also does not authorize 
persons subject to U.S. jurisdiction to establish a business or 
physical presence in Cuba, to hire Cuban nationals, or to engage in 
any transactions prohibited by Sec.  515.208.

    (b) Persons subject to U.S. jurisdiction are authorized to engage 
in all transactions incident to obtaining approval from the U.S. Food 
and Drug Administration (FDA) of Cuban-origin pharmaceuticals, 
including discovery and development, pre-clinical research, clinical 
research, regulatory review, regulatory approval and licensing, 
regulatory post-market activities, and the importation into the United 
States of Cuban-origin pharmaceuticals.
    (c) Persons subject to U.S. jurisdiction are authorized to engage 
in all transactions incident to the marketing, sale, or other 
distribution in the United States of FDA-approved Cuban-origin 
pharmaceuticals, including the importation into the United States of 
Cuban-origin pharmaceuticals.
    (d)(1) Opening and maintaining bank accounts at Cuban financial 
institutions to engage in authorized transactions. The opening and 
maintenance of accounts, including the deposit of funds in such 
accounts by wire transfer, at a financial institution in Cuba, is 
authorized provided that such accounts are used only for transactions 
authorized pursuant to this section.
    (2) Closing bank accounts. The closing of an account opened 
pursuant to the authorization in paragraph (d)(1) of this section is 
authorized, provided that any transfer of funds may only be effected by 
wire transfer to an account maintained at a depository institution, as 
defined in Sec.  515.333, that is a person subject to U.S. 
jurisdiction.
    (e) Specific licenses. (1) To the extent not authorized by 
paragraph (b) of this section, specific licenses may be issued for the 
importation of Cuban-origin commodities for bona-fide research purposes 
in sample quantities only.
    (2) Specific licenses may be issued for transactions related to 
medical research or pharmaceutical products not authorized by 
paragraphs (a) through (c) of this section.

    Note to Sec.  515.547:  Transactions authorized by this section 
may require separate authorizations or approvals by the FDA or other 
Federal agencies.


0
12. Revise Sec.  515.550 to read as follows:


Sec.  515.550  Certain vessel transactions authorized.

    (a) Unless a vessel is otherwise engaging or has otherwise engaged 
in transactions that would prohibit entry pursuant to Sec.  515.207, 
Sec.  515.207 shall not apply to a vessel that is:
    (1) Engaging or has engaged in trade with Cuba authorized pursuant 
to this part;

    Note to paragraph (a)(1):
    The authorization in this paragraph includes, for example, trade 
with Cuba authorized pursuant to Sec.  515.533, Sec.  515.559, or 
Sec.  515.582, or by specific license.

    (2) Engaging or has engaged in trade with Cuba that is exempt from 
the prohibitions of this part (see Sec.  515.206);
    (3) Engaging or has engaged in the exportation or reexportation to 
Cuba from a third country of agricultural commodities, medicine, or 
medical devices that, were they subject to the Export Administration 
Regulations (15 CFR parts 730 through 774) (EAR), would be designated 
as EAR99;
    (4) A foreign vessel that has entered a port or place in Cuba while 
carrying students, faculty, and staff that are authorized to travel to 
Cuba pursuant to Sec.  515.565(a); or
    (5) Carrying or has carried persons between the United States and 
Cuba or within Cuba pursuant to the authorization in Sec.  
515.572(a)(2) or, in the case of a vessel used solely for personal 
travel (and not transporting passengers), pursuant to a license or 
other authorization issued by the Department of Commerce for the 
exportation or reexportation of the vessel to Cuba.
    (b) Unless a vessel is otherwise engaging or has otherwise engaged 
in transactions that would prohibit entry pursuant to Sec.  515.207, 
Sec.  515.207(a) shall not apply to a foreign vessel that has engaged 
in the exportation to Cuba from a third country only of items that, 
were they subject to the EAR, would be designated as EAR99 or would be 
controlled on the Commerce Control List only for anti-terrorism 
reasons.

0
13. Amend Sec.  515.559 by revising paragraph (d) to read as follows:


Sec.  515.559  Certain export and import transactions by U.S.-owned or 
-controlled foreign firms.

* * * * *
    (d) General license. Travel-related transactions set forth in Sec.  
515.560(c) and such other transactions as are directly incident to 
market research, commercial marketing, sales or contract negotiation, 
accompanied delivery, installation, leasing, servicing, or repair in 
Cuba of exports that are consistent with the licensing policy under 
paragraph (a) of this section 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.
* * * * *

0
14. Amend Sec.  515.560 by revising paragraphs (c)(3) and (c)(6)(ii) 
and Note 3 to Sec.  515.560 to read as follows:

[[Page 71377]]

Sec.  515.560  Travel-related transactions to, from, and within Cuba by 
persons subject to U.S. jurisdiction.

* * * * *
    (c) * * *
    (3) Importation of Cuban merchandise. The purchase or other 
acquisition in Cuba and importation as accompanied baggage into the 
United States of merchandise is authorized, provided that the 
merchandise is imported for personal use only. The importation of 
Cuban-origin information and informational materials is exempt from the 
prohibitions of this part, as described in Sec.  515.206. The 
importation of certain other specified goods and services is authorized 
in Sec. Sec.  515.544, 515.547, 515.569, 515.578, 515.582, and 515.585.
* * * * *
    (6) * * *
    (ii) Closing bank accounts. All transactions incident to the 
closing of accounts opened pursuant to the authorization in paragraph 
(c)(6)(i) of this section are authorized, provided that any transfer of 
funds may only be effected by wire transfer to an account maintained at 
a depository institution, as defined in Sec.  515.333, that is a person 
subject to U.S. jurisdiction.
* * * * *

    Note 3 to Sec.  515.560:  The export or reexport to Cuba of 
goods (including software) or technology subject to the Export 
Administration Regulations (15 CFR parts 730 through 774) may 
require separate authorization from the Department of Commerce.


0
15. Amend Sec.  515.564 by removing paragraph (a)(1)(ii), redesignating 
(a)(1)(iii) as (a)(1)(ii), and revising 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 attendance at, or organization of, professional 
meetings or conferences in Cuba are authorized, provided that:
    (i) For a traveler 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;
    (ii) For a traveler 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; and
    (iii) 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
16. Amend Sec.  515.565 as follows:
0
(a) Remove paragraph (a)(11);
0
(b) Redesignate paragraphs (a)(12) and (a)(13) as paragraphs (a)(11) 
and (a)(12), respectively;
0
(c) Revise redesignated paragraph (a)(11); and
0
(d) Add new note 4 to paragraph (a) to read as follows:


Sec.  515.565  Educational activities.

    (a) * * *
    (11) The organization of, and preparation for, activities described 
in paragraphs (a)(1) through (a)(10) of this section by employees or 
contractors of the sponsoring organization that is a person subject to 
U.S. jurisdiction;
* * * * *

    Note 4 to paragraph (a):  See Sec.  515.590(a) for an 
authorization for the provision of educational grants, scholarships, 
or awards to a Cuban national or in which Cuba or a Cuban national 
otherwise has an interest.

* * * * *

0
17. Revise Sec.  515.569 to read as follows:


Sec.  515.569  Foreign passengers' baggage.

    The importation of merchandise subject to the prohibitions in Sec.  
515.204, including Cuban-origin goods, brought into the United States 
as accompanied baggage by any person arriving in the United States 
other than a citizen or resident of the United States is hereby 
authorized, provided that such goods are not in commercial quantities 
and are not imported for resale.

0
18. Amend Sec.  515.570 to redesignate paragraph (i) as paragraph (j) 
and to add new paragraph (i) to read as follows:


Sec.  515.570  Remittances.

* * * * *
    (i) Remittances to third-country nationals for certain travel. 
Persons subject to the jurisdiction of the United States are authorized 
to make remittances to third-country nationals for travel by third-
country nationals to, from, or within Cuba, provided that such travel 
would be authorized by a general license issued pursuant to this part 
if the traveler were a person subject to U.S. jurisdiction.
* * * * *

0
19. Amend Sec.  515.572 by revising the section heading, adding 
paragraph (a)(5), and revising paragraph (b)(1) to read as follows:


Sec.  515.572  Provision of travel, carrier, other transportation-
related, and remittance forwarding services.

    (a) * * *
    (5) Authorization to provide civil aviation safety-related 
services. Persons subject to U.S. jurisdiction are authorized to 
provide civil aviation safety-related services to Cuba and Cuban 
nationals, wherever located, to ensure the safety of civil aviation and 
the safe operation of commercial aircraft.

    Note to paragraph (a)(5):  For provisions related to 
transactions ordinarily incident to the exportation or reexportation 
of items to Cuba, see Sec. Sec.  515.533 and 515.559.

* * * * *
    (b) * * *
    (1) Persons subject to U.S. jurisdiction providing services 
authorized pursuant to paragraphs (a)(1) through (a)(4) of this section 
must retain for at least five years from the date of the transaction a 
certification from each customer indicating the section of this part 
that authorizes the person to travel or send remittances to Cuba. In 
the case of a customer traveling under a specific license, the specific 
license number or a copy of the license must be maintained on file with 
the person subject to U.S. jurisdiction providing services authorized 
pursuant to this section.
* * * * *

0
20. Amend Sec.  515.575 by revising note 2 to paragraph (a) to read as 
follows:


Sec.  515.575  Humanitarian projects.

    (a) * * *

    Note 2 to paragraph (a):  See Sec.  515.590(b) for an 
authorization for the provision of grants, scholarships, or awards 
related to humanitarian projects in or related to Cuba that are 
designed to directly benefit the Cuban people as set forth in 
paragraph (b).

* * * * *

0
21. Amend Sec.  515.578 by revising note 1 to Sec.  515.578(a) to read 
as follows:


Sec.  515.578  Exportation, reexportation, and importation of certain 
internet-based services; importation of software.

    (a) * * *

    Note 1 to Sec.  515.578(a):  The export or reexport to Cuba of 
items subject to the

[[Page 71378]]

Export Administration Regulations (15 CFR parts 730 through 774) may 
require separate authorization from the Department of Commerce.

* * * * *

0
22. Revise Sec.  515.581 to read as follows:


Sec.  515.581  Transactions related to conferences in third countries.

    Persons subject to U.S. jurisdiction are authorized to sponsor, 
organize, or provide services in connection with, as well as 
participate in, conferences or other similar events in a third country 
that are attended by Cuban nationals.

    Note to Sec.  515.581:  The export or reexport to Cuba of 
technology subject to the Export Administration Regulations (15 CFR 
parts 730 through 774) may require separate authorization from the 
Department of Commerce.


0
23. Amend Sec.  515.584 by revising paragraphs (c) and (f) to read as 
follows:


Sec.  515.584  Certain financial transactions involving Cuba.

* * * * *
    (c) Credit and debit cards. All transactions incident to the 
processing and payment of credit and debit cards involving travel-
related and other transactions consistent with Sec.  515.560 are 
authorized.
* * * * *
    (f) Any banking institution, as defined in Sec.  515.314, that is a 
person subject to U.S. jurisdiction is authorized to provide financing 
for exports or reexports of items, other than agricultural 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.
* * * * *

0
24. Amend Sec.  515.585 by revising paragraph (c), removing the note to 
paragraph (c), adding paragraph (d), and amending Note 3 and Note 4 to 
Sec.  515.585 to read as follows:


Sec.  515.585  Certain transactions in third countries.

* * * * *
    (c) Individuals who are persons subject to U.S. jurisdiction who 
are present in a third country are authorized to purchase or acquire 
merchandise subject to the prohibitions in Sec.  515.204, including 
Cuban-origin goods, and to receive or obtain services in which Cuba or 
a Cuban national has an interest that are ordinarily incident to travel 
and maintenance within that country.
    (d) Individuals who are persons subject to U.S. jurisdiction are 
authorized to import into the United States as accompanied baggage 
merchandise subject to the prohibitions in Sec.  515.204, including 
Cuban-origin goods, that is purchased or acquired in a third country, 
provided that the merchandise is imported for personal use only.
* * * * *

    Note 3 to Sec.  515.585:  Except as provided in paragraphs (c) 
and (d) of this section, this section does not authorize any 
transactions prohibited by Sec.  515.204.


    Note 4 to Sec.  515.585: The export or reexport to Cuba of goods 
(including software) or technology subject to the Export 
Administration Regulations (15 CFR parts 730 through 774) may 
require separate authorization from the Department of Commerce.


0
25. Add Sec.  515.590 to subpart E to read as follows:


Sec.  515.590  Certain grants, scholarships, and awards.

    The provision of grants, scholarships, or awards relating to the 
following activities to a Cuban national or in which Cuba or a Cuban 
national otherwise has an interest is authorized:
    (a) Educational activities;
    (b) Humanitarian projects, as set forth in Sec.  515.575(b);
    (c) Scientific research; and
    (d) Religious activities.

0
26. Add Sec.  515.591 to subpart E to read as follows:


Sec.  515.591  Services related to infrastructure.

    Persons subject to the jurisdiction of the United States are 
authorized to provide to Cuba or Cuban nationals services related to 
developing, repairing, maintaining, and enhancing Cuban infrastructure 
that directly benefit the Cuban people, provided that those services 
are consistent with the export or reexport licensing policy of the 
Department of Commerce. For the purposes of this section, 
infrastructure means systems and assets used to provide the Cuban 
people with goods and services produced or provided by the public 
transportation, water management, waste management, non-nuclear 
electricity generation, and electricity distribution sectors, as well 
as hospitals, public housing, and primary and secondary schools. This 
authorization includes projects related to the environmental protection 
of U.S., Cuban, and international air quality, waters, and coastlines.

    Note 1 to Sec.  515.591:  For provisions related to transactions 
ordinarily incident to the exportation or reexportation of items to 
Cuba, see Sec. Sec.  515.533 and 515.559. See Sec.  746.2(b) of the 
Export Administration Regulations (15 CFR parts 730 through 774) for 
the Department of Commerce's Cuba licensing policy.


    Note 2 to Sec.  515.591:  See Sec.  515.564 for a general 
license authorizing travel-related and other transactions incident 
to professional research and professional meetings in Cuba, Sec.  
515.533(c) for a general license authorizing travel-related and 
other transactions relating to certain exports and reexports to 
Cuba, and Sec.  515.575(a) for a general license authorizing 
transactions, including travel-related transactions, related to 
certain humanitarian projects.

Subpart H--Procedures


Sec.  515.803   [Removed]

0
27. Remove Sec.  515.803 from subpart H.

    Dated: October 11, 2016.
John E. Smith,
Acting Director, Office of Foreign Assets Control.
[FR Doc. 2016-25032 Filed 10-14-16; 8:45 am]
 BILLING CODE 4810-AL-P