Cuban Assets Control Regulations; News Organizations; Travel Transactions; Intellectual Property

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