[Federal Register Volume 60, Number 203 (Friday, October 20, 1995)]
[Rules and Regulations]
[Pages 54194-54197]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-25976]
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DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 515
Cuban Assets Control Regulations; News Organizations; Travel
Transactions; Intellectual Property
AGENCY: Office of Foreign Assets Control, Treasury.
ACTION: Final rule; amendments.
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SUMMARY: Pursuant to the President's announcement of October 6, 1995,
the Treasury Department is amending the Cuban Assets Control
Regulations to add 3 interpretive sections concerning the authorization
of travel transactions related to research, free-lance journalism, and
educational activities in Cuba. A general license is added to permit
travel to Cuba once a year in cases of extreme humanitarian need.
Statements of licensing policy are added concerning the availability of
specific licenses for public performances, educational exchanges,
activities of human rights organizations, and the reciprocal
establishment of news organization offices. Payment of expenses for
intellectual property protection in Cuba is also authorized. In
addition, a number of clarifying technical amendments are included in
this final rule.
EFFECTIVE DATE: October 17, 1995.
FOR FURTHER INFORMATION CONTACT: Steven I. Pinter, Chief of Licensing
(tel.: 202/622-2480), or William B. Hoffman, Chief Counsel (tel.: 202/
622-2410), Office of Foreign Assets Control, Department of the
Treasury, Washington, D.C. 20220.
SUPPLEMENTARY INFORMATION:
Electronic Availability
This document is available as an electronic file on The Federal
Bulletin Board the day of publication in the Federal Register. By
modem, dial 202/515-1387 and type ``/GO FAC,'' or call 202/512-1530 for
disks or paper copies. This file is available for downloading in
WordPerfect, ASCII, and Adobe AcrobatTM readable (*.PDF) formats.
The document is also accessible for downloading in ASCII format without
change from Treasury's Electronic Library (``TEL'') in the ``Business,
Trade and Labor Mall'' of the FedWorld bulletin board. By modem dial
703/321-3339, and select self-expanding file ``T11FR00.EXE'' in TEL.
For Internet access, use one of the following protocols: Telnet =
fedworld.gov (192.239.93.3); World Wide Web (Home Page) = hhtp://
www.fedworld.gov; FTP = ftp.fedworld.gov (192.239.92.205).
Background
On October 6, 1995, President Clinton announced a number of changes
to the administration of the Cuban embargo intended to promote
democratic change in Cuba. Accordingly, the Office of Foreign Assets
Control is amending the Cuban Assets Control Regulations, 31 CFR part
515 (the ``Regulations''), to implement these measures.
Section 514.416 is amended to expand the interpretation of the term
[[Page 54195]]
``research and similar activities'' to include research conducted on
behalf of an organization with an established interest in international
relations. Individuals acting on behalf of such an organization may
apply for a specific license to authorize travel-related transactions
in Cuba. Section 515.417 is added to the Regulations to establish the
basis on which specific licenses to authorize travel-related
transactions will be granted to individuals engaging in free-lance
journalism. Section 515.419 is added providing an interpretation of the
term ``educational activities.'' Specific licenses will be available
for individuals who are attending certain meetings of international
organizations in Cuba. Undergraduates' travel to Cuba for study toward
a degree may be licensed if the activities are sponsored by a college
or university.
Sections 515.527 and 515.528 are amended to authorize transactions
including payments to the United States by Cuban nationals and payments
to Cuba by U.S. companies and individuals related to the protection of
intellectual property. A new general license is established at
Sec. 515.560(a)(1)(iii) to permit travel to Cuba once a year to visit
close relatives in circumstances of extreme humanitarian need.
Clarifying amendments are made to Sec. 515.560(g) to make clear that
``fully hosted or sponsored'' travelers may not use the charter
services authorized pursuant to Sec. 515.566. Section 515.565 is
amended to provide that specific licenses may be issued for public
performances or public exhibitions in Cuba. A new Sec. 515.572 is added
to the Regulations which states that specific licenses may be issued on
a case-by-case basis to permit the establishment of offices for news
organizations in the United States by Cubans and in Cuba by U.S.
persons.
A new Sec. 515.573 is added to the Regulations authorizing
educational exchanges for Cuban and U.S. scholars, as well as study in
a Cuban academic institution by graduate and undergraduate students.
Section 515.574 is added to the Regulations to allow for specific
licensing of activities of human rights organizations and other non-
governmental organizations to support the Cuban people.
In addition, certain technical amendments are included in this
rule. The term ``authorized trade territory'' is redefined in
Sec. 515.322. Sections 515.413 and 515.561 are being removed from the
Regulations. Section 515.413, concerning certain engineering advice,
related to a general license that is no longer included in the
Regulations; accordingly, Sec. 515.413 is being removed as unnecessary.
Section 515.561 was originally incorporated into the Regulations to
authorize travel in support of transactions authorized under an earlier
version of Sec. 515.559. The continued authorization of travel
transactions is inconsistent with the present limited scope of
Sec. 515.559. Finally Sec. 515.563 is amended to clarify that
remittances related to emigration from Cuba continue to be authorized
under general license.
Because 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.
List of Subjects in 31 CFR Part 515
Administrative practice and procedure, Air carriers, Banks,
banking, Cuba, Currency, Estates, Exports, Fines and penalties, Foreign
investment in the United States, Foreign trade, Imports, Informational
materials, Publications, Reporting and recordkeeping requirements,
Securities, Shipping, Travel restrictions, Trusts and trustees,
Vessels.
For the reasons set forth in the preamble, 31 CFR part 515 is
amended as set forth below:
PART 515--CUBAN ASSETS CONTROL REGULATIONS
1. The authority citation for part 515 continues to read as
follows:
Authority: 50 U.S.C. App. 1-44; 22 U.S.C. 6001-6010; 22 U.S.C.
2370(a); Proc. 3447, 27 FR 1085, 3 CFR, 1959-1963 Comp., p. 157;
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; E.O. 12854, 58 FR 36587, 3
CFR, 1993 Comp., p. 614.
Subpart C--General Definitions
2. Paragraph (a) of Sec. 515.322 is revised to read as follows:
Sec. 515.322 Authorized trade territory; member of the authorized
trade territory.
(a) The term authorized trade territory includes all countries,
including any colony, territory, possession, or protectorate, except
those countries subject to sanctions pursuant to this chapter. The term
does not include the United States.
* * * * *
Subpart D--Interpretations
Sec. 515.413 [Removed and reserved]
3. Section 515.413 is removed and reserved.
4. The introductory text of paragraph (a) and paragraph (a)(1) of
Sec. 515.416 are revised to read as follows:
Sec. 515.416 Professional research and similar activities.
(a) Section 515.560(b) sets forth the criteria on which specific
licenses for transactions related to travel to, from, and within Cuba
may be issued for persons engaging in professional research and similar
activities of a noncommercial, academic nature. Persons traveling to
Cuba to engage in professional research must engage in a full work
schedule in Cuba, and there must be a substantial likelihood of public
dissemination of the product of their research. No transactions related
to tourist or recreational travel within Cuba are authorized in
connection with professional research, except those that are consistent
with a full schedule of research activities.
(1) Persons are considered to be engaging in professional research
for purposes of this section:
(i) If they are full-time professionals who travel to Cuba to do
research in their professional areas and their research is specifically
related to Cuba; or
(ii) If they are acting on behalf of an organization with an
established interest in international relations to collect information
related to Cuba.
* * * * *
5. Section 515.417 is added to subpart D to read as follows:
Sec. 515.417 Free-lance journalists.
(a) Section 515.560(a)(2) authorizes travel transactions for
journalists who are regularly employed in that capacity by a news
reporting organization. For individuals who wish to travel to Cuba to
do research for a free-lance article, specific licenses will be issued
pursuant to Sec. 515.560(b) on a case-by-case basis upon submission of
an adequate written application including the following documentation:
(1) A detailed itinerary and a detailed description of the proposed
research; and
(2) A resume or similar document showing a record of publications.
(b) To qualify for specific licensing pursuant to Sec. 515.560(b),
the itinerary for the proposed research in Cuba for a free-lance
article must demonstrate that the research constitutes a full work
schedule that could not be accomplished in a shorter period of time.
[[Page 54196]]
6. Section 515.419 is added to subpart D to read as follows:
Sec. 515.419 Travel related to educational activities.
(a) Section 515.560(b) provides, in part, that specific licenses
will be issued to persons for travel to Cuba for clearly defined
educational activities. Transactions related to travel and maintenance
in Cuba for the following activities will be licensed upon submission
of an adequate written application:
(1) Attendance at a meeting or conference held in Cuba by a person
with an established interest in the subject of the meeting or
conference, provided that:
(i) The meeting or conference is organized by an international
institution or association that regularly sponsors meetings or
conferences in other countries; and
(ii) The purpose of the meeting or conference is not the promotion
of tourism in Cuba or other commercial activities involving Cuba that
are inconsistent with this part; and
(2) Activities related to study for an undergraduate or graduate
degree sponsored by a college or university located in the United
States.
(b) Transactions related to travel that is primarily tourist
travel, including self-directed educational activities that are
intended for personal enrichment, will not be licensed pursuant to
Sec. 515.560(b).
Subpart E--Licenses, Authorizations, and Statements of Licensing
Policy
7. Section 515.527 is revised to read as follows:
Sec. 515.527 Certain transactions with respect to United States
intellectual property.
(a) Transactions related to the registration and renewal in the
United States Patent and Trademark Office or the United States
Copyright Office of patents, trademarks, and copyrights in which the
Government of Cuba or a Cuban national has an interest are authorized.
(b) This section authorizes the payment from blocked accounts or
otherwise of fees currently due to the United States Government in
connection with any transaction authorized in paragraph (a) of this
section.
(c) This section further authorizes the payment from blocked
accounts or otherwise of the reasonable and customary fees and charges
currently due to attorneys or representatives within the United States
in connection with the transactions authorized in paragraph (a) of this
section.
8. The section heading and the introductory text of paragraph (a)
of Sec. 515.528 are revised to read as follows:
Sec. 515.528 Certain transactions with respect to blocked foreign
intellectual property.
(a) The following transactions by any person who is not a
designated national are hereby authorized:
* * * * *
9. Paragraphs (a), (b) and (g) of Sec. 515.560 are revised to read
as follows:
Sec. 515.560 Certain transactions incident to travel to and within
Cuba.
(a)(1) General license. The transactions in paragraph (c) of this
section are authorized in connection with travel to Cuba by:
(i) Persons who are officials of the United States Government or of
any foreign government, or of any intergovernmental organization of
which the United States is a member, and who are traveling on official
business;
(ii) Journalists regularly employed in that capacity by a news
reporting organization; or
(iii) Persons, and persons traveling with them who share a common
dwelling as a family with them, who are traveling to visit close
relatives in Cuba in circumstances that demonstrate extreme
humanitarian need, provided that the authorization contained in this
paragraph may be used only once in any 12 month period. Any additional
transactions must be specifically licensed pursuant to paragraph (b) of
this section.
(2) Nothing in this section authorizes transactions in connection
with tourist travel to Cuba, nor does it authorize transactions in
relation to any business travel not otherwise authorized by specific
license issued pursuant to this part.
(b) Specific licenses. Specific licenses authorizing the
transactions in paragraph (c) of this section may be issued in cases
involving extreme humanitarian need to persons or persons living in the
same household, who seek to travel to visit close relatives in Cuba of
such persons more than once in a calendar year. Specific licenses may
also be issued to persons to travel to Cuba for humanitarian reasons
based on a demonstrated compelling need to travel, for professional
research and similar activities consistent with Sec. 515.416, for free
lance journalism consistent with Sec. 515.417, for clearly defined
educational activities consistent with Sec. 515.419, for religious
activities, for activities of recognized human rights organizations
investigating human rights violations, or for purposes related to the
exportation, importation, or transmission of information or
informational materials as defined in Sec. 515.332.
(1) For purposes of this section, the term close relative means
spouse, child, grandchild, parent, grandparent, great grandparent,
uncle, aunt, brother, sister, nephew, niece, first cousin, mother-in-
law, father-in-law, daughter-in-law, son-in-law, sister-in-law,
brother-in-law, or spouse, widow, or widower of any of the foregoing.
(2) Nothing in this section authorizes transactions in connection
with tourist travel to Cuba. Travel to Cuba that is characterized as
falling within the criteria specified in paragraph (b) is prohibited
unless specifically licensed.
* * * * *
(g)(1) For purposes of this section, all necessary transactions
involving fully sponsored or hosted travel to, from, and within Cuba
are authorized, provided that:
(i) No person subject to the jurisdiction of the United States
shall make any payment or transfer any property or provide any service
to Cuba or a Cuban national in connection with such travel; and
(ii) The travel is not aboard a direct flight between the United
States and Cuba authorized pursuant to Sec. 515.566 of this part.
(2) Travel shall be considered fully sponsored or hosted for
purposes of this section notwithstanding a payment by the person
subject to the jurisdiction of the United States for transportation to
and from Cuba, provided that the carrier furnishing the transportation
is not a Cuban national.
Sec. 515.561 [Removed and reserved]
10. Section 515.561 is removed and reserved.
11. Section 515.563 is revised to read as follows:
Sec. 515.563 Family remittances to nationals of Cuba.
(a) Specific licenses may be issued on a case-by-case basis
authorizing remittances to a close relative of the remitter or of the
remitter's spouse who is a national of Cuba and who is resident in Cuba
or in the authorized trade territory. Such remittances will be
authorized only in circumstances where extreme humanitarian need is
demonstrated, including terminal illness or severe medical emergency.
(b) Remittances to any close relative of the remitter or of the
remitter's spouse who is a national of Cuba or who
[[Page 54197]]
is resident in Cuba are authorized for the purpose of enabling the
payee to emigrate from Cuba to the United States, in an amount not
exceeding $500, to be made only once to any payee, provided that the
payee is a resident of and within Cuba at the time the payment is made.
(c) The term close relative used with respect to any person means
such person's spouse, child, grandchild, parent, grandparent, great
grandparent, uncle, aunt, brother, sister, nephew, niece, first cousin,
mother-in-law, father-in-law, son-in-law, daughter-in-law, sister-in-
law, brother-in-law, or spouse, widow, or widower of any of the
foregoing.
12. Paragraph (c) is added to Sec. 515.565 to read as follows:
Sec. 515.565 Transactions in connection with public exhibitions or
performances.
* * * * *
(c) Specific licenses may be issued in appropriate cases for
transactions incident to participation by a person subject to the
jurisdiction of the United States in a public exhibition or performance
in Cuba.
13. Section 515.572 is added to subpart E to read as follows:
Sec. 515.572 Transactions by news organizations.
(a) Specific licenses may be issued authorizing all transactions
necessary for the establishment and operation of news bureaus in Cuba
whose primary purpose is the gathering and dissemination of news to the
general public. Transactions that may be authorized include, but are
not limited to, those incident to the following:
(1) Leasing office space and securing related goods and services;
(2) Hiring Cuban nationals to serve as support staff;
(3) Purchasing Cuban-origin goods for use in the operation of the
office; and
(4) Paying fees related to the operation of the office in Cuba.
(b) Specific licenses may be issued authorizing transactions
necessary for the establishment and operation of news bureaus in the
United States by Cuban organizations whose primary purpose is the
gathering and dissemination of news to the general public.
(c) Specific licenses may be issued authorizing transactions
related to hiring Cuban nationals to provide reporting services or
other services related to the gathering and dissemination of news.
(d) Note: The number assigned to a specific license issued pursuant
to this section should be referenced in all import documents, and in
all funds transfers and other banking transactions through banks
organized or located in the United States, in connection with the
licensed transaction to avoid the blocking of goods imported from Cuba
and the interruption of the financial transactions with Cuba.
14. Section 515.573 is added to subpart E to read as follows:
Sec. 515.573 Transactions related to educational exchanges.
Specific licenses may be issued on a case-by-case basis authorizing
the following:
(a) Transactions related to teaching at a Cuban academic
institution by an individual regularly employed in a teaching capacity
at a college or university located in the United States, provided the
activities are related to a college or university academic program;
(b) Transactions related to the sponsorship of a Cuban scholar to
teach or engage in other scholarly activity at a college or university
located in the United States;
(c) Transactions related to participation in a formal course of
study at a Cuban academic institution by a graduate or undergraduate
student; and
(d) Transactions related to the organization of activities
described in paragraph (a), (b), or (c) of this section.
15. Section 515.574 is added to subpart E to read as follows:
Sec. 515.574 Support for the Cuban people.
(a) Specific licenses may be issued on a case-by-case basis for
transactions intended to provide support for the Cuban people
including, but not limited to, the following:
(1) Activities of recognized human rights organizations; and
(2) Activities of individuals and non-governmental organizations
which promote independent activity intended to strengthen civil society
in Cuba.
(b) Licenses will only be issued pursuant to this section upon a
clearly articulated showing that the proposed transactions are
consistent with the purposes of this part and that no significant
accumulation of funds or financial benefit will accrue to the
Government of Cuba.
Dated: October 13, 1995.
R. Richard Newcomb,
Director, Office of Foreign Assets Control.
Approved: October 13, 1995.
John P. Simpson,
Deputy Assistant Secretary (Regulatory, Tariff & Trade Enforcement).
[FR Doc. 95-25976 Filed 10-17-95; 11:09 am]
BILLING CODE 4810-25-F
