Cuban Assets Control Regulations: Sales of Food and Agricultural Inputs; Remittances; Educational, Religious, and Other Activities; Travel-Related Transactions; U.S. Intellectual Property

DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Part 515

Cuban Assets Control Regulations: Sales of Food and Agricultural

Inputs; Remittances; Educational, Religious, and Other Activities;

Travel-Related Transactions; U.S. 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 January 5, 1999,

the Treasury Department is amending the Cuban Assets Control

Regulations to modify certain provisions with respect to remittances

and travel-related transactions and to make other clarifying and

conforming amendments to the regulations. The regulations also

implement a statutory provision excluding from an existing general

license transactions involving certain intellectual property used in

connection with a business or assets that were confiscated.

EFFECTIVE DATE: May 10, 1999.

FOR FURTHER INFORMATION CONTACT: Dennis P. Wood, Chief, Compliance

Programs Division (tel.: 202/622-2490); Steven I. Pinter, Chief of

Licensing (tel.: 202/622-2480); Charles L. Bishop, OFAC-Miami Sanctions

Coordinator (tel.: 305/810-5140); or William B. Hoffman, Chief Counsel

(tel.: 202/622-2410); Office of Foreign Assets Control, Department of

the Treasury, Washington, DC 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 202/512-1387 and type ``/GO FAC,'' or call 202/512-1530 for

disk or paper copies. This file is available for downloading without

charge in ASCII and Adobe AcrobatR readable (*.PDF) formats.

For Internet access, the address for use with the World Wide Web (Home

Page), Telnet, or FTP protocol is: fedbbs.access.gpo.gov. The document

is also accessible for downloading in ASCII format without charge from

Treasury's Electronic Library (``TEL'') in the ``Research 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 25809]]

Page) = http://www.fedworld.gov; FTP = ftp.fedworld.gov

(192.239.92.205). Additional information concerning the programs of the

Office of Foreign Assets Control is available for downloading from the

Office's Internet Home Page: http://www.treas.gov/ofac, or in fax form

through the Office's 24-hour fax-on-demand service: call 202/622-0077

using a fax machine, fax modem, or (within the United States) a touch-

tone telephone.

Background

On January 5, 1999, President Clinton announced that the United

States is taking additional steps to expand the flow of humanitarian

assistance to Cuba and strengthen independent civil society in that

country. Among the initiatives the President announced were an

expansion of remittances to support Cuban families and organizations

independent of the Cuban government; expansion of people-to-people

contact through two-way exchanges among academics, athletes,

scientists, and others and streamlining the approval process for their

visits; and the sale of food and agricultural commodities to

independent nongovernmental entities.

The U.S. Treasury Department's Office of Foreign Assets Control

(``OFAC'') is implementing these steps through amendments to the Cuban

Assets Control Regulations, 31 CFR Part 515 (the ``CACR''), and

reorganizing the CACR to place related provisions together. In

addition, OFAC is implementing section 211 of Division A, Title II, of

the Omnibus Consolidated and Emergency Supplemental Appropriations Act,

1999 (Public Law 105-277 [H.R. 4328]), excluding from the scope of the

general license contained in Sec. 515.527 any transaction or payment

with respect to a mark, trade name, or commercial name that is the same

as or substantially similar to a mark, trade name, or commercial name

that was used in connection with a business or assets that were

confiscated, unless the original owner of the mark, trade name, or

commercial name or the bona fide successor-in-interest has expressly

consented.

Remittances

In implementation of the President's policy statement, these

amendments include a new general license allowing any person subject to

U.S. jurisdiction who is 18 years of age or older to make remittances

of up to $300 in any consecutive 3-month period to the household of any

individual in Cuba or the authorized trade territory (defined in

Sec. 515.322 of the CACR to mean all countries not subject to economic

sanctions administered by OFAC pursuant to chapter V, 31 CFR) who is

not a senior government or senior communist party official of Cuba.

Persons subject to U.S. jurisdiction may also be specifically licensed

to send remittances to organizations independent of the Cuban

government. Descriptions of specific amendments concerning remittances

follow.

Old Sec. 515.521 previously contained a general license authorizing

remittances, including those from blocked accounts in the name of the

payee or members of his or her household, not to exceed $100 per

calendar month to Cuban nationals in the authorized trade territory.

Old Sec. 515.556 stated that remittances from blocked accounts sent to

Cuban nationals located in the authorized trade territory pursuant to

Sec. 515.521 could be increased on a case-by-case basis upon a showing

that such increase was reasonable and necessary. These sections have

been largely superseded by the new policy contained in new Sec. 515.570

on remittances to Cuban nationals. The previous authorization for

limited remittances from blocked accounts in Sec. 515.521, and the

reference to it in Sec. 515.566, however, are now incorporated in

Sec. 515.570(a)(2), (b)(3) and (d)(3), respectively.

The general license contained in old Sec. 515.563 permitting

certain remittances to close relatives in Cuba is also incorporated in

new Sec. 515.570. In addition to the family remittance and the two

existing $500 emigration remittances, a new individual-to-household

remittance, not to exceed $300 per quarter, is now authorized by

general license to any household of a Cuban national in Cuba or the

authorized trade territory whose household does not include a senior

Cuban government or communist party official. A remitter may not send

both a family remittance and an individual-to-household remittance to

the same household within the same 3-month period. New Sec. 515.570

also provides for specific licenses authorizing remittances to

independent nongovernmental entities in Cuba.

Travel-Related Transactions

Travel-related transactions are now generally authorized in

connection with specified news support, professional research, and

athletic activities, and are authorized in connection with broad

classes of educational and religious activities in Cuba conducted under

the auspices of U.S. academic institutions or U.S. religious

organizations that receive long-term specific licenses. In addition,

specific licenses may be issued for travel-related transactions in

connection with cultural activities, humanitarian projects, and certain

trade transactions found consistent with relevant export licensing

policies. Authorization of travel-related transactions related to

exportations, however, does not extend to the authorization of the

exportation itself. Descriptions of specific amendments concerning

travel-related transactions follow.

Section 515.420 is added to set forth OFAC's interpretation of

fully-hosted travel involving Cuba, previously contained in old

Sec. 515.560(g).

Old Sec. 515.518 contained a general license permitting debits to

blocked accounts held in the name of Cuban nationals for their living,

traveling, and similar personal expenses in the United States, not to

exceed $250 per calendar month. This provision has now been

consolidated with old Sec. 515.564 (authorizing the same transactions

on behalf of Cuban nationals in the United States from non-blocked

sources) in new Sec. 515.571.

Section 515.533, authorizing transactions incident to exportations

of goods directly from the United States to Cuba that are authorized by

the Department of Commerce, is amended to add a statement that specific

licenses may be issued authorizing travel-related transactions for

purposes related to the marketing, sales negotiation, accompanied

delivery, or servicing of exports. Exportations themselves must be

specifically licensed by the Department of Commerce. Section 511.533 is

also amended to state that financing for exportations to Cuba of food

and agricultural commodities authorized by the Department of Commerce

is not authorized.

The authorization in old Sec. 515.540 for the importation of Cuban-

origin goods (other than alcohol and tobacco) contained in personal

baggage carried by foreign nationals entering the United States has

been moved to new Sec. 515.569.

The authorization in Sec. 515.545 for transactions directly

incident to the importation or exportation of information and

informational materials is amended to note that specific licenses may

be issued authorizing travel-related transactions for purposes related

to such activities.

Section 515.559, governing licensing policy with respect to

transactions by U.S.-owned or controlled foreign firms with Cuba, is

amended to add a statement that specific licenses may be issued

authorizing travel-related transactions for purposes related to

marketing, sales negotiation, accompanied delivery, or servicing of

[[Page 25810]]

exports found consistent with relevant OFAC export licensing policy;

for example, exports of medicine and medical supplies.

Old Sec. 515.560 authorized by general or specific license travel-

related transactions to and within Cuba incident to specified

activities set forth in that section. New Sec. 515.560 continues to set

forth the types of transactions that may be authorized incident to

travel to Cuba, but the underlying activities for which such

transactions may be authorized are now described in separate, self-

contained sections, referenced in paragraph (a) of Sec. 515.560.

Paragraph (b) of Sec. 515.560 is amended to cite OFAC's general

licensing authority referred to in Sec. 515.801 to license travel-

related transactions for activities not specifically covered in part

515. Paragraph (c) of Sec. 515.560 continues to list the travel-related

transactions that may be authorized for generally and specifically

licensed travelers to Cuba. Paragraph (c)(2) of Sec. 515.560 increases

the per diem for expenses in Cuba from $100 to the amount authorized

for civilian employees of the United States Government in Havana, Cuba,

currently set at $183. Changes in the per diem rate are published as

required in the monthly State Department publication ``Maximum Travel

Per Diem Allowances for Foreign Areas,'' available from the Government

Printing Office or on the Internet at http://www.state.gov/www/

perdiems/index.html. New Sec. 515.560 also incorporates old

Sec. 515.569, governing currency carried to Cuba by authorized

travelers.

Section 515.561, previously reserved, now contains the general

license authorizing travel-related transactions for the purpose of

visiting close relatives in Cuba, previously contained in old

Sec. 515.560(a)(1)(iii). This general license, available once in any

12-month period, is only available in cases involving ``humanitarian

need.'' Any additional visits within a 12-month period require specific

licensing under Sec. 515.561(b), based on ``humanitarian need.''

Old Sec. 515.562, authorizing U.S.-owned or controlled foreign

firms to bunker vessels or fuel aircraft owned or controlled by, or

chartered to, Cuba or nationals thereof, is moved to Sec. 515.558. New

Sec. 515.562 now contains the general license authorizing travel-

related and other transactions directly incident to official government

travel to, from, and within Cuba, previously contained in

Sec. 515.560(a)(1)(i).

New Sec. 515.563 now contains the general license for travel-

related and other transactions directly incident to journalism,

previously contained in old Sec. 515.560(a)(1)(ii) and now expanded to

include travel-related transactions on the part of persons regularly

employed as supporting broadcast or technical personnel. New

Sec. 515.563 also incorporates the specific licensing criteria for

free-lance journalism previously set forth as an interpretive provision

in old Sec. 515.417 and now expanded to allow for specific licenses

authorizing transactions for multiple trips to Cuba in certain cases.

Old Sec. 515.564, authorizing transactions incident to travel to,

from, and within the United States by certain Cuban nationals, is

incorporated in new Sec. 515.571. New Sec. 515.564 consolidates old

Secs. 515.416, 515.419(a)(1), and 515.560(b), setting forth a general

license for travel-related and other transactions directly incident to

professional research and attendance at professional meetings in Cuba

hosted by international organizations; these activities were previously

authorized only by specific license.

Old Sec. 515.565, authorizing transactions for public exhibitions

and performances by specific license, is incorporated in new

Sec. 515.567. New Sec. 515.565 consolidates old Secs. 515.419,

515.560(b), and 515.573 to authorize travel-related and other

transactions directly incident to a wide range of educational

activities, including those undertaken by secondary school students,

where the traveler carries a letter from his or her academic

institution located in the United States confirming that he or she is

affiliated with that institution. Use of this authorization requires

that the accredited U.S. academic institution under whose auspices the

educational activities are undertaken first obtain a specific license

from OFAC authorizing the institution and its students and employees to

engage in travel-related and other transactions directly incident to

the generally-licensed educational activities set forth in

Sec. 515.565(a)(2)(i) to (a)(2)(vii). Such activities include teaching

at a Cuban academic institution by persons employed in a teaching

capacity in the United States, as well as sponsoring Cuban scholars to

teach or engage in other scholarly activity in the United States,

including the payment of a stipend or salary to the sponsored scholars.

In addition, specific licenses pursuant to Sec. 515.565(b) may be

issued authorizing transactions incident to certain educational

activities not covered by a specific license issued pursuant to

Sec. 515.565(a) to a U.S. academic institution or incident to certain

educational exchanges not involving academic study pursuant to a degree

program.

Old Sec. 515.566, previously setting forth the criteria pursuant to

which persons may be authorized to engage in transactions involving

Cuba as travel or carrier service providers or family remittance

forwarders, is moved to new Sec. 515.572. New Sec. 515.566(a)

authorizes travel-related and other transactions directly incident to

religious activities in Cuba, where the traveler carries a letter from

his or her religious organization located in the United States

confirming that he or she is affiliated with that organization and is

traveling to Cuba to undertake religious activities under the

organization's auspices. Use of this authorization requires that the

U.S. religious organization itself obtain a specific license from OFAC

authorizing the religious organization and affiliated individuals and

groups to engage in travel-related and other transactions that are

directly incident to religious activities in Cuba under the auspices of

the licensed religious organization. Pursuant to Sec. 515.566(b),

specific licenses may also be issued for other religious activities in

Cuba.

Old Sec. 515.567, setting forth specific licensing criteria for

unblocking certain corporate assets, is now contained in Sec. 515.521.

New Sec. 515.567(a) sets forth a general license authorizing travel-

related and other transactions directly incident to certain amateur and

semi-professional athletic competitions by athletes or teams. Paragraph

(b) of Sec. 515.567 incorporates old Sec. 515.565, setting forth the

specific licensing criteria for travel-related and other transactions

directly incident to participation in a public performance, clinic,

workshop, athletic or other competition, or exhibition in Cuba, or for

transactions on behalf of a Cuban national in the United States for the

purpose of participation in such activities. Specific licenses

authorizing transactions for multiple trips to Cuba for these purposes

may also be issued.

Old Sec. 515.568, setting forth specific licensing criteria for

unblocking certain decedent estate assets, is moved to Sec. 515.522.

Old Sec. 515.569, governing the carriage of currency by travelers

to Cuba, has been incorporated into new Sec. 515.560. New Sec. 515.569

now contains old Sec. 515.540, generally authorizing foreign persons to

import Cuban-origin goods (except for tobacco and alcohol) as

accompanied baggage when entering the United States.

Old Sec. 515.572, setting forth specific licensing criteria for the

operation of news bureaus in Cuba, is moved to new Sec. 515.573.

[[Page 25811]]

Section 515.574, setting forth specific licensing criteria for

authorizing transactions in support of the Cuban people, is amended to

add a statement that specific licenses may be issued authorizing

travel-related transactions for such activities.

Section 515.575 is added to set forth specific licensing criteria

for authorizing travel-related and other transactions for certain

humanitarian projects designed to directly benefit the Cuban people,

including medical and health-related, environmental, small-scale

enterprise, and agricultural and rural development projects. Specific

licenses authorizing transactions for multiple trips to Cuba for these

purposes may also be issued.

Section 515.576 is added to set forth specific licensing criteria

for authorizing travel-related and other transactions for activities of

private foundations or research or educational institutes with an

established interest in international relations. Specific licenses

authorizing transactions for multiple trips to Cuba for these purposes

may also be issued.

Miscellaneous Provisions

Section 515.206 of the CACR is amended to conform the scope of

exempt transactions to include the statutory exemption for the donation

of food to nongovernmental organizations or individuals in Cuba

contained in section 1705(b) of the Cuban Democracy Act (22 U.S.C.

6001-6010, 6004(b)).

Section 515.527 of the CACR is amended to conform the scope of

authorized transactions pertaining to intellectual property rights to

the statutory restriction contained in section 211 of Division A, Title

II, of the Omnibus Consolidated and Emergency Supplemental

Appropriations Act, 1999 (Public Law 105-277 [H.R. 4328]), excluding

from the scope of the general license contained in Sec. 515.527 any

transaction or payment with respect to a mark, trade name, or

commercial name that is the same as or substantially similar to a mark,

trade name, or commercial name that was used in connection with a

business or assets that were confiscated, unless the original owner of

the mark, trade name, or commercial name or the bona fide successor-in-

interest has expressly consented.

Old Sec. 515.571, waiving under certain circumstances the

prohibition contained in Sec. 515.207 (prohibiting certain vessels that

have engaged in trade with Cuba from entering U.S. ports), is moved to

Sec. 515.550 and amended to expand the waiver to cover vessels involved

in any trade transactions authorized pursuant to Sec. 515.533.

The following two charts provide easy reference to the regulatory

changes that have been made: the first lists the new section

designations, their subjects, and from what former sections they are

derived; the second lists the former section designations and indicates

where the content of the old sections now appears.

Derivation of New Sections

------------------------------------------------------------------------

New Section Subject Source

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Sec. 515.420 Fully-hosted travel Sec. 515.560(g)

Sec. 515.521 Blocked corporate Sec. 515.567

assets

Sec. 515.522 Blocked estate assets Sec. 515.568

Sec. 515.550 Vessel waiver Sec. 515.571

Sec. 515.558 Cuban carriers Sec. 515.562

Sec. 515.561 Family visits Sec. 515.560(a)

Sec. 515.562 Official travel Sec. 515.560(a)

Sec. 515.563 Journalism Secs. 515.417, 515.560(a)

Sec. 515.564 Professional research Secs. 515.416,

515.419(a)(1), 515.560(b),

CDA

Sec. 515.565 Educational activities Secs. 515.419, 515.560(b),

515.573

Sec. 515.566 Religious activities Sec. 515.560(b)

Sec. 515.567 Athletic/cultural Sec. 515.565

activities

Sec. 515.568 Reserved ...........................

Sec. 515.569 Foreign persons' Sec. 515.540

baggage

Sec. 515.570 Remittances Secs. 515.521, 515.556,

515.563

Sec. 515.571 Cubans in United States Secs. 515.518, 515.564

Sec. 515.572 Travel and carrier Sec. 515.566

service

Sec. 515.573 News organizations Sec. 515.572

Sec. 515.575 Humanitarian projects Sec. 515.560(b); new

Sec. 515.576 Foundation projects Sec. 515.416(a)(1), (ii);

new

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Distribution of Former Sections

------------------------------------------------------------------------

Former Section Subject New Location

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Sec. 515.416 Professional research Sec. 515.564

Sec. 515.417 Free-lance journalism Sec. 515.563(b)

Sec. 515.419 Educational activities Sec. 515.565

Sec. 515.518 Cubans in United States Sec. 515.571(b)

Sec. 515.521 Remittances to Cubans Sec. 515.570

Sec. 515.540 Foreign persons' Sec. 515.569

baggage

Sec. 515.556 Remittances to Cubans Sec. 515.570

Sec. 515.558 Sole proprietors Sec. 515.546

Sec. 515.562 Cuban carriers Sec. 515.558

Sec. 515.563 Family remittances Sec. 515.570

Sec. 515.564 Cubans in United States Sec. 515.571(a)

Sec. 515.565 Public exhibitions Sec. 515.567(b)

Sec. 515.566 Travel and carrier Sec. 515.572

service

Sec. 515.567 Blocked corporate Sec. 515.521

assets

Sec. 515.568 Blocked estate assets Sec. 515.522

Sec. 515.569 Currency Sec. 515.560

Sec. 515.571 Vessel waiver Sec. 515.550

Sec. 515.572 News organizations Sec. 515.573

Sec. 515.573 Educational activities Sec. 515.565

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Because the Regulations involve a foreign affairs function,

Executive Order 12866 and the provisions of the Administrative

Procedure Act (5 U.S.C. 553)(the ``APA'') 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 Regulations are being issued without prior notice and public

comment procedure pursuant to the APA. The collections of information

related to the Regulations are contained in 31 CFR part 501 (the

``Reporting and Procedures Regulations''). Pursuant to the Paperwork

Reduction Act of 1995 (44 U.S.C. 3507), those collections of

information have been approved by the Office of Management and Budget

under control number 1505-0164. An agency may not conduct or sponsor,

and a person is not required to respond to, a collection of information

unless the

[[Page 25812]]

collection of information displays a valid control number.

List of Subjects in 31 CFR Part 515

Administrative practice and procedure, Air carriers, Banks,

banking, Blocking of assets, Cuba, Currency, Estates, Exports, Foreign

investment in the United States, Foreign trade, Imports, Informational

materials, Intellectual property, Penalties, Publications, Reporting

and recordkeeping requirements, Securities, Shipping, Specially

designated nationals, Terrorism, 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: 18 U.S.C. 2332d; 22 U.S.C. 2370(a), 6001-6010, 6021-

6091; 31 U.S.C. 321(b); 50 U.S.C. App. 1-44; Pub. L. 101-410, 104

Stat. 890 (28 U.S.C. 2461 note); Pub. L. 105-277; E.O. 9193, 7 FR

5205, 3 CFR, 1938-1943 Comp., p. 1147; E.O. 9989, 13 FR 4891, 3 CFR,

1943-48 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 D--Prohibitions

2. Section 515.206 is amended as follows:

A. The section heading is revised to read as set forth below.

B. Paragraphs (a) through (d) are redesignated as paragraphs (a)(1)

through (a)(4).

C. A heading for paragraph (a) is added as set forth below.

D. Redesignated paragraph (a)(3) is amended by removing the words

``section 779 of the Export Administration Regulations, 15 CFR parts

768-799,'' and adding in their place the words ``the Export

Administration Regulations, 15 CFR parts 730-774,''.

E. Redesignated paragraph (a)(4) is amended by removing the words

``Sec. 515.560 or by specific license.'' and adding in their place

``Sec. 515.545.''.

F. New paragraph (b) is added to read as follows:

Sec. 515.206 Exempt transactions.

(a) Information and informational materials. (1) * * *

* * * * *

(b) Donation of food. The prohibitions contained in this part do

not apply to transactions incident to the donation of food to

nongovernmental organizations or individuals in Cuba.

Subpart C--General Definitions

3. Section 515.302 is amended as follows:

A. Paragraph (b) is redesignated as new paragraph (c).

B. New paragraph (b) is added to read as follows:

Sec. 515.302 National.

* * * * *

(b) Persons who travel in Cuba do not become nationals of Cuba

solely because of such travel.

* * * * *

Subpart D--Interpretations

Sec. 515.407 [Amended]

4. Section 515.407 is amended by revising ``Sec. 515.568'' to read

``Sec. 515.522''.

Sec. 515.415 [Amended]

5. Section 515.415 is amended as follows:

A. Paragraph (b) is amended by revising ``Sec. 515.564'' to read

``Sec. 515.571''.

B. Paragraph (c) is amended by removing the words ``within the

general license of Sec. 515.560'' and adding in their place ``as set

forth in Sec. 515.560(c)''.

Sec. 515.416 [Removed and reserved]

6. Section 515.416 is removed and reserved.

Sec. 515.417 [Removed and reserved]

7. Section 515.417 is removed and reserved.

Sec. 515.418 [Amended]

8. Paragraph (b) of Sec. 515.418 is amended by revising

``515.560(b)'', wherever it appears, to read ``515.545''.

Sec. 515.419 [Removed and reserved]

9. Section 515.419 is removed and reserved.

10. Section 515.420 is added to Subpart D to read as follows:

Sec. 515.420 Fully-hosted travel to Cuba.

(a) A person subject to the jurisdiction of the United States who

is not authorized to engage in travel-related transactions in which

Cuba has an interest will not be considered to violate the prohibitions

of this part when a person not subject to the jurisdiction of the

United States covers the cost of all transactions related to the travel

of the person subject to the jurisdiction of the United States (the

``fully-hosted'' traveler), provided that:

(1) No person subject to the jurisdiction of the United States has

made any payments or transferred any property or provided any service

to Cuba or a Cuban national in connection with such fully-hosted travel

or has prepaid or reimbursed any person for travel expenses, except as

authorized in paragraph (b) of this section; and

(2) The travel is not aboard a direct flight between the United

States and Cuba authorized pursuant to Sec. 515.572.

(b) Travel will be considered fully hosted notwithstanding a

payment by a 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. Persons

authorized as travel service providers pursuant to Sec. 515.572 may

book passage on behalf of fully-hosted travelers through to Cuba,

provided that such travel is not on a direct flight from the United

States and that the carrier furnishing the transportation is not a

Cuban national.

(c) Unless otherwise authorized pursuant to this part, any person

subject to the jurisdiction of the United States who has traveled to

Cuba shall be presumed to have engaged in travel-related transactions

prohibited by Sec. 515.201. This presumption may be rebutted by a

statement signed by the traveler providing specific supporting

documentation showing that no transactions were engaged in by the

traveler or on the traveler's behalf by other persons subject to U.S.

jurisdiction or showing that the traveler was fully hosted by a third

party not subject to the jurisdiction of the United States and that

payments made on the traveler's behalf were not in exchange for

services provided to Cuba or any national thereof. The statement should

address the circumstances of the travel and explain how it was possible

for the traveler to avoid entering into travel-related transactions

such as payments for meals, lodging, transportation, bunkering of

vessels, visas, entry or exit fees, and gratuities. If applicable, the

statement should state what party hosted the travel and why. The

statement must provide a day-to-day account of financial transactions

waived or entered into on behalf of the traveler by the host, including

but not limited to visa fees, room and board, local or international

transportation costs, and Cuban airport departure taxes. In the case of

pleasure craft calling at Cuban marinas, the statement must also

address related refueling costs, mooring fees, club membership fees,

provisions, cruising permits, local land transportation, and departure

fees. Travelers fully hosted by a person or persons not subject to the

jurisdiction of the United States must also provide an

[[Page 25813]]

original signed statement from their sponsor or host, specific to that

traveler, confirming that the travel was fully hosted and the reasons

for the travel.

Note to paragraph (c): Travelers should be aware that fully-

hosted travelers are not travelers whose travel-related transactions

are licensed pursuant to this part and therefore such fully-hosted

travelers may not engage in the travel-related transactions set

forth in Sec. 515.560(c), including the purchase and importation of

up to $100 of Cuban merchandise for personal use. All documentation

described in paragraph (c) of this section is subject to the

recordkeeping requirements, including the record retention period,

in Sec. 501.601 of this chapter.

(d) Persons planning to travel to Cuba may access the Office of

Foreign Assets Control's information resources over the Internet at

http://www.treas.gov/ofac, through the office's fax-on-demand service

at 202/622-0077, or by calling the office's Compliance Programs

Division at 202/622-2490, prior to their departure to familiarize

themselves with the requirements for fully-hosted travel. Other

inquiries concerning travel-related transactions should be addressed to

the Licensing Division, Office of Foreign Assets Control, U.S.

Department of the Treasury, 1500 Pennsylvania Avenue, NW--Annex,

Washington, DC 20220.

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

Policy

Sec. 515.518 [Removed and reserved]

11. Section 515.518 is removed and reserved.

Secs. 515.521, 515.563, 515.564, 515.565, 515.569, 515.573 [Removed]

12. Sections 515.521, 515.563, 515.564, 515.565, 515.569, and

515.573 are removed.

13. The sections listed in the first column below are redesignated

as shown in the second column:

------------------------------------------------------------------------

Old Section New Section

------------------------------------------------------------------------

Sec. 515.540 Sec. 515.569

Sec. 515.558 Sec. 515.546

Sec. 515.562 Sec. 515.558

Sec. 515.566 Sec. 515.572

Sec. 515.567 Sec. 515.521

Sec. 515.568 Sec. 515.522

Sec. 515.571 Sec. 515.550

Sec. 515.572 Sec. 515.573

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Sec. 515.523 [Amended]

14. Paragraph (b)(3) of Sec. 515.523 is amended by revising

``Sec. 515.568'' to read ``Sec. 515.522''.

Sec. 515.525 [Amended]

15. Paragraph (b) of Sec. 515.525 is amended by revising

``Sec. 515.523, Sec. 515.568'' to read ``Sec. 515.522, Sec. 515.523''.

16. Section 515.527 is amended by designating the existing text as

paragraph (a)(1) and adding paragraph (a)(2) to read as follows:

Sec. 515.527 Certain transactions with respect to United States

intellectual property.

(a)(1) * * *

(2) No transaction or payment is authorized or approved pursuant to

paragraph (a)(1) of this section with respect to a mark, trade name, or

commercial name that is the same as or substantially similar to a mark,

trade name, or commercial name that was used in connection with a

business or assets that were confiscated, as that term is defined in

Sec. 515.336, unless the original owner of the mark, trade name, or

commercial name, or the bona fide successor-in-interest has expressly

consented.

* * * * *

17. In Sec. 515.533, the section heading is revised; the

introductory text of paragraph (a) and paragraphs (a)(1) and (d) are

revised; and paragraphs (e) and (f) and a note to the section are added

to read as follows:

Sec. 515.533 Transactions incident to exportations from the United

States to Cuba.

(a) All transactions ordinarily incident to the exportation of

goods, wares, and merchandise from the United States to any person

within Cuba are hereby authorized, provided the following terms and

conditions are complied with:

(1) The exportation 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. app. 2401-2420) (see

the Export Administration Regulations, 15 CFR 730-774); and

* * * * *

(d) This section does not authorize any exportation under License

Exception GFT, 15 CFR 740.12, except gift parcels that contain only

food, vitamins, seeds, medicines, medical supplies and devices,

hospital supplies and equipment, equipment for the handicapped,

clothing, personal hygiene items, veterinary medicines and supplies,

fishing equipment and supplies, soap-making equipment, or certain radio

equipment and batteries for such equipment, as specifically set forth

in 15 CFR 740.12, and that otherwise comply with the requirements of

that section.

(e) Specific licenses may be issued on a case-by-case basis

authorizing the travel-related transactions set forth in

Sec. 515.560(c) and other transactions that are directly incident to

the marketing, sales negotiation, accompanied delivery, or servicing of

exports that appear consistent with the export licensing policy of the

Department of Commerce.

(f) This section does not authorize trade financing with respect to

the commercial sale of food or agricultural commodities.

Note to Sec. 515.533: For the waiver of the prohibition

contained in Sec. 515.207 on certain vessel transactions for vessels

transporting shipments of goods, wares, or merchandise between the

United States and Cuba pursuant to this section, see Sec. 515.550.

Sec. 515.540 [Removed and reserved]

18. Section 515.540 is removed and reserved.

19. Section 515.545 is amended as follows:

A. Paragraph (b) is amended by revising ``Sec. 515.206(c)'' to read

``Sec. 515.206(a)(3)''.

B. Paragraph (c) is added to read as follows:

Sec. 515.545 Transactions related to information and informational

materials.

* * * * *

(c) Specific licenses may be issued on a case-by-case basis

authorizing the travel-related transactions set forth in

Sec. 515.560(c) for purposes related to the exportation, importation,

or transmission of information or informational materials as defined in

Sec. 515.332.

20. Newly redesignated Sec. 515.550 is revised to read as follows:

Sec. 515.550 Certain vessel transactions authorized.

Unless a vessel 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:

(a) Engaging in trade with Cuba authorized by licenses issued

pursuant to Sec. 515.533 or Sec. 515.559; or

(b) Engaging in trade with Cuba that is exempt from the

prohibitions of this part (see Sec. 515.206).

Sec. 515.551 [Amended]

21. Paragraph (a)(3) of Sec. 515.551 is amended by revising

``Sec. 515.568'' to read ``Sec. 515.522''.

Sec. 515.556 [Removed and reserved]

22. Section 515.556 is removed and reserved.

23. Section 515.559 is amended by adding paragraph (b)(2) and a

note to the section to read as follows:

[[Page 25814]]

Sec. 515.559 Transactions by U.S.-owned or controlled foreign firms

with Cuba.

* * * * *

(b) * * *

(2) Travel-related transactions set forth in Sec. 515.560(c) and

other transactions that are directly incident to marketing, sales

negotiation, accompanied delivery, or servicing of exports that are

consistent with the licensing policy under this section.

* * * * *

Note to Sec. 515.559: Transactions by U.S.-owned or controlled

foreign firms in connection with the exportation of information or

informational materials or the donation of food to nongovernmental

entities or individuals in Cuba are exempt from the prohibitions of

this part. See Sec. 515.206. For the waiver of the prohibition

contained in Sec. 515.207 on certain vessel transactions for vessels

transporting shipments of goods, wares, or merchandise pursuant to

this section, see Sec. 515.550.

24. Section 515.560 is revised to read as follows:

Sec. 515.560 Travel-related transactions to, from, and within Cuba by

persons subject to U.S. jurisdiction.

(a) The travel-related transactions listed in paragraph (c) of this

section may be authorized either by a general license or on a case-by-

case basis by a specific license for travel related to the following

activities (see the referenced sections for general and specific

licensing criteria):

(1) Family visits (general and specific licenses) (see

Sec. 515.561);

(2) Official business of the U.S. government, foreign governments,

and certain intergovernmental organizations (general license) (see

Sec. 515.562);

(3) Journalistic activity (general and specific licenses) (see

Sec. 515.563);

(4) Professional research (general and specific licenses) (see

Sec. 515.564);

(5) Educational activities (specific licenses) (see Sec. 515.565);

(6) Religious activities (specific licenses) (see Sec. 515.566);

(7) Public performances, clinics, workshops, athletic and other

competitions, and exhibitions (general and specific licenses) (see

Sec. 515.567);

(8) Support for the Cuban people (specific licenses) (see

Sec. 515.574);

(9) Humanitarian projects (specific licenses) (see Sec. 515.575);

(10) Activities of private foundations or research or educational

institutes (specific licenses) (see Sec. 515.576);

(11) Exportation, importation, or transmission of information or

informational materials (specific licenses) (see Sec. 515.545); and

(12) Certain export transactions that may be considered for

authorization under existing Department of Commerce regulations and

guidelines with respect to Cuba or engaged in by U.S.-owned or

controlled foreign firms (specific licenses) (see Secs. 515.533 and

515.559).

(b) Travel-related transactions in connection with activities other

than those referenced in paragraph (a) of this section may be

authorized on a case-by-case basis by a specific license issued

pursuant to Sec. 515.801.

(c) Persons generally or specifically licensed under this part to

engage in transactions in connection with travel to, from, and within

Cuba may engage in the following transactions:

(1) Transportation to and from Cuba. All transportation-related

transactions ordinarily incident to travel to and from (not within)

Cuba, provided no more than $500 may be remitted to Cuba directly or

indirectly in any consecutive 12-month period for fees imposed by the

Government of Cuba in conjunction with such travel unless otherwise

authorized.

(2) Living expenses in Cuba. All transactions ordinarily incident

to travel anywhere within Cuba, including payment of living expenses

and the acquisition in Cuba of goods for personal consumption there,

provided that, unless otherwise authorized, the total for such expenses

does not exceed the ``maximum per diem rate'' for Havana, Cuba in

effect during the period that the travel takes place. The per diem rate

is published in the State Department's ``Maximum Travel Per Diem

Allowances for Foreign Areas,'' a supplement to section 925, Department

of State Standardized Regulations (Government Civilians, Foreign

Areas), available from the Government Printing Office, Superintendent

of Documents, P.O. Box 371954, Pittsburgh, PA 15250-7954, or on the

Internet at http://www.state.gov/www/perdiems/index.html.

(3) Purchase in Cuba and importation into the United States of

merchandise. The purchase in Cuba and importation as accompanied

baggage into the United States of merchandise with a foreign market

value not to exceed $100 per person, provided the merchandise is

imported for personal use only. Such merchandise may not be resold.

This authorization may be used only once every six consecutive months.

As provided in Sec. 515.206(a), the purchase and importation of

information or informational materials are exempt from all restrictions

contained in this part.

(4) Carrying remittances to Cuba. The carrying to Cuba of any

remittances that the licensed traveler is authorized to remit pursuant

to Sec. 515.570, provided that no more than $300 of remittances

authorized by Sec. 515.570(a) or (b) is carried in any one trip, unless

otherwise authorized. Those licensed travelers carrying either of the

emigration remittances authorized pursuant to Sec. 515.570(c) must be

able to produce the visa recipient's full name and date of birth and

the number and date of issuance of the visa or other travel

authorization issued. A licensed traveler to Cuba is only authorized to

carry remittances that he or she is authorized to remit and may not

carry remittances being made by other persons.

(5) Processing certain financial instruments. All transactions

incident to the processing and payment of checks, drafts, travelers'

checks, and similar instruments negotiated in Cuba by any person

authorized pursuant to this part to engage in financial transactions in

Cuba. For purposes of this section, the authorized transactions may be

conducted using currency, which is defined as money, cash, drafts,

notes, travelers' checks, negotiable instruments, or scrip having a

specified or readily determinable face value or worth, but which does

not include gold or other precious metals in any form.

Note to paragraph (c): The authorizations in paragraph (c) of

this section do not apply to fully-hosted travelers because their

travel-related transactions are not licensed or authorized pursuant

to this part. See Sec. 515.420.

(d) A Cuban national departing the United States may carry

currency, as that term is defined in paragraph (c)(5) of this section,

as follows:

(1) The amount of any currency brought into the United States by

the Cuban national and registered with the U.S. Customs Service upon

entry;

(2) Up to $300 in funds received as remittances by the Cuban

national during his or her stay in the United States; and

(3) Compensation earned by a Cuban national from a U.S. academic

institution up to any amount that can be substantiated through payment

receipts from such institution as authorized pursuant to

Sec. 515.565(a)(2)(v).

(e) The following transactions by persons generally or specifically

licensed to engage in travel-related transactions to, from, and within

Cuba are prohibited by Sec. 515.201 unless specifically authorized:

(1) All transactions by persons subject to U.S. jurisdiction

related to the utilization of charge cards, including but not limited

to debit or credit cards, for expenditures in Cuba.

(2) All transactions related to the processing and payment by

persons subject to U.S. jurisdiction, such as charge card issuers or

intermediary banks, of charge card instruments (e.g.,

[[Page 25815]]

vouchers, drafts, or sales receipts) for expenditures in Cuba. The

issuer of a charge card, or a foreign charge card firm owned or

controlled by persons subject to U.S. jurisdiction, is not authorized

to deal with a Cuban enterprise, a Cuban national, or a third-country

person, such as a franchisee, in connection with the extension of

charge card services to any person in Cuba.

(f) Persons traveling to Cuba fully hosted as described in

Sec. 515.420 may not carry currency to pay for living expenses or the

purchase of goods in Cuba except as specifically licensed pursuant to

or exempted from the application of this part.

(g) Nothing in this section authorizes transactions in connection

with tourist travel to Cuba, nor does it authorize transactions in

relation to any business travel, including making or agreeing to make

any investment in Cuba, establishing or agreeing to establish any

branch or agency in Cuba, or transferring or agreeing to transfer any

property to Cuba, except transfers by or on behalf of individual or

group travelers authorized pursuant to this part.

25. Section 515.561 is added to read as follows:

Sec. 515.561 Persons visiting family members in Cuba.

(a) General license. The travel-related transactions set forth in

Sec. 515.560(c) are authorized in connection with travel to Cuba by

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 humanitarian need, provided that the

authorization contained in this paragraph may be used only once in any

12-month period. See Secs. 501.601 and 501.602 of this chapter for

applicable recordkeeping and reporting requirements. Any additional

transactions must be specifically licensed pursuant to paragraph (b) of

this section.

(b) 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) in connection with travel to Cuba by persons, and

persons traveling with them who share a common dwelling as a family

with them, who seek to travel to visit close relatives in Cuba more

than once in any consecutive 12-month period in cases involving

humanitarian need.

(c) For purposes of this section, 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.

26. New Sec. 515.562 is added to read as follows:

Sec. 515.562 Officials of the U.S. government, foreign governments,

and certain intergovernmental organizations traveling to, from, and

within Cuba on official business.

The travel-related transactions set forth in Sec. 515.560(c) and

such additional transactions as are directly incident to activities in

their official capacities by persons who are officials of the United

States Government, any foreign government, or any intergovernmental

organization of which the United States is a member and who are

traveling on the official business of their government or international

organization are authorized.

27. New Sec. 515.563 is added to read as follows:

Sec. 515.563 Journalistic activities in Cuba.

(a) General license. The travel-related transactions set forth in

Sec. 515.560(c) and such additional transactions as are directly

incident to journalistic activities in Cuba by persons regularly

employed as journalists by a news reporting organization or by persons

regularly employed as supporting broadcast or technical personnel are

authorized.

Note to paragraph (a): See Secs. 501.601 and 501.602 of this

chapter for applicable recordkeeping and reporting requirements. The

exportation of equipment and other items to be used in journalistic

activities may require separate licensing by the Department of

Commerce.

(b) Specific licenses. (1) Specific licenses may be issued on a

case-by-case basis authorizing the travel-related transactions set

forth in Sec. 515.560(c) and other transactions that are directly

incident to doing research in Cuba for a free-lance article upon

submission of an adequate written application including the following

documentation:

(i) A detailed itinerary and a detailed description of the proposed

research; and

(ii) A resume or similar document showing a record of publications.

(2) To qualify for a specific license pursuant to this section, 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.

(3) Specific licenses may be issued pursuant to this section

authorizing transactions for multiple trips to Cuba over an extended

period of time by applicants demonstrating a significant record of

free-lance journalism.

28. New Sec. 515.564 is added to read as follows:

Sec. 515.564 Professional research and professional meetings in Cuba.

(a) General license. (1) The travel-related transactions set forth

in Sec. 515.560(c) and such additional transactions that are directly

incident to professional research by full-time professionals who travel

to Cuba to conduct professional research in their professional areas

are authorized, provided that:

(i) The research is of a noncommercial, academic nature;

(ii) The research comprises a full work schedule in Cuba;

(iii) The research has a substantial likelihood of public

dissemination; and

(iv) The research does not fall within the categories of activities

described in paragraph (c), (d), or (e) of this section.

(2) The travel-related transactions set forth in Sec. 515.560(c)

and such additional transactions as are directly incident to travel to

Cuba by full-time professionals to attend professional meetings or

conferences in Cuba organized by an international professional

organization, institution, or association that regularly sponsors

meetings or conferences in other countries are authorized, provided

that:

(i) The international professional organization, institution, or

association is not headquartered in the United States unless that

organization, institution, or association has been specifically

licensed to sponsor the meeting in Cuba;

(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

(iii) The meeting or conference is not intended primarily for the

purpose of fostering production of any biotechnological products.

Note to paragraph (a): See Secs. 501.601 and 501.602 of this

chapter for applicable recordkeeping and reporting requirements.

Exportation of equipment and other items, including the transfer of

technology or software to foreign persons (``deemed exportation'')

and items not eligible for Department of Commerce GFT or BAG License

Exceptions, 15 CFR 740.12 and 740.14, may require separate

authorization by the Department of Commerce.

(b) Specific licensing. Specific licenses may be issued on a case-

by-case basis authorizing the travel-related transactions set forth in

Sec. 515.560(c) and other transactions that are directly

[[Page 25816]]

incident to professional research and professional meetings that do not

qualify for the general license in paragraph (a) of this section.

Specific licenses may be issued pursuant to this section authorizing

transactions for multiple trips to Cuba over an extended period of time

by applicants demonstrating a significant record of research. Specific

licenses will not be issued for travel-related transactions for

purposes of attendance at meetings or conferences in Cuba organized by

the Cuban government where such meetings or conferences could be

intended primarily for the purpose of fostering the production of any

biotechnological products.

(c) Categories of activities that do not qualify for the general

license in paragraph (a) of this section and for which the specific

licenses described in paragraph (b) of this section will not be issued

include recreational travel; tourist travel; travel in pursuit of a

hobby; research for personal satisfaction only; and any travel for an

authorized professional research purpose if the schedule of activities

includes free time, travel, or recreation in excess of that consistent

with a full work schedule of professional research or attendance at

professional meetings or conferences.

(d) An entire group does not qualify for the general license in

paragraph (a) of this section and will not be issued a specific license

under paragraph (b) of this section merely because some members of the

group could qualify individually for such licenses.

Example 1 to paragraph (d): A musicologist travels to Cuba to do

research on Cuban music pursuant to the general license for

professional researchers set forth in paragraph (a) of this section.

Others who are simply interested in music but who do not research

music as part of their careers may not engage in travel-related

transactions with the musicologist in reliance on this general

license. For example, an art historian who plays in the same band

with the musicologist would not qualify as a professional researcher

of Cuban music for purposes of this general license.

Example 2 to paragraph (d): A specific license issued pursuant

to paragraph (b) of this section authorizing travel-related

transactions by a fish biologist who travels to Cuba to engage in

professional research does not authorize transactions by other

persons who might travel with the fish biologist but whose principal

purpose in travel is to engage in recreational or trophy fishing.

The fact that such persons may engage in certain activities with or

under the direction of the professional fish biologist, such as

measuring or recording facts about their catch, does not bring these

individuals' activities within the scope of professional research

and similar activities.

(e) A person will not qualify as engaging in professional research

merely because that person is a professional who plans to travel to

Cuba.

Example 1 to paragraph (e): A professor of history interested in

traveling to Cuba for the principal purpose of learning or

practicing Spanish or attending general purpose lectures devoted to

Cuban culture and contemporary life does not qualify for the general

license in paragraph (a) of this section or for a specific license

issued pursuant to paragraph (b) of this section.

Example 2 to paragraph (e): A professional photographer who

wishes to take photographs in Cuba that will become the basis for

creating post cards, paintings, and other secondary products or that

merely document the photographer's travel does not qualify for the

general license in paragraph (a) of this section or for a specific

license issued pursuant to paragraph (b) of this section.

29. New Sec. 515.565 is added to read as follows:

Sec. 515.565 Educational activities.

(a) Specific license for U.S. academic institutions--(1) Issuance;

renewal. A specific license may be issued to an accredited U.S.

academic institution authorizing the institution and its students and

employees to engage, under the auspices of the institution, in

educational activities involving transactions in which Cuba or a Cuban

national has an interest. The application for the specific license must

establish that the U.S. academic institution is accredited by an

appropriate national or regional educational accrediting association.

The specific license may be renewed after a period of two years to

authorize the accredited U.S. academic institution and its students and

employees to continue to engage in the transactions authorized under

the institution's license.

(2) Scope of transactions authorized under U.S. academic

institution's specific license; documentation. Upon receipt of a

specific license pursuant to paragraph (a)(1) of this section by the

accredited U.S. academic institution, the institution and its students

and employees are authorized to engage in the travel-related

transactions set forth in Sec. 515.560(c) and such additional

transactions as are directly incident to any of the categories of

educational activities set forth in paragraphs (a)(2)(i) through

(a)(2)(vii) of this section undertaken under the auspices of the

specifically-licensed institution. Activities covered by this

authorization are limited to the following:

(i) Participation in a structured educational program by an

undergraduate or graduate student or undergraduate or graduate student

group as part of a course offered at an accredited U.S. college or

university. A student planning to engage in such transactions in Cuba

must carry a letter from the U.S. academic institution stating that the

student is currently enrolled in an undergraduate or graduate degree

program there and that the Cuba travel is part of a structured

educational program of that institution and citing the number of the

relevant U.S. academic institution's specific license.

(ii) Noncommercial academic research in Cuba specifically related

to Cuba by a person working to qualify academically as a professional

(for example, research toward a graduate degree). A student planning to

engage in such transactions in Cuba must carry a letter from the

student's accredited U.S. academic institution stating that the

individual is currently enrolled in a graduate degree program and that

the Cuba research will be accepted for credit toward that degree and

citing the number of the relevant U.S. academic institution's specific

license.

(iii) Participation in a formal course of study at a Cuban academic

institution by an undergraduate or graduate student currently enrolled

in a degree program at an accredited U.S. college or university,

provided the formal course of study in Cuba will be accepted for credit

toward the student's undergraduate or graduate degree at that U.S.

college or university. A student planning to engage in such

transactions in Cuba must carry with him or her a letter from the

student's U.S. academic institution stating that the student is

currently enrolled in an undergraduate or graduate degree program and

that the Cuban study will be accepted for credit toward that degree and

citing the number of the relevant U.S. academic institution's specific

license.

(iv) Teaching at a Cuban academic institution by an individual

regularly employed in a teaching capacity at an accredited U.S. college

or university, provided the teaching activities are related to an

academic program at the Cuban institution. An individual planning to

teach at a Cuban academic institution must obtain and carry a written

letter from the individual's U.S. academic institution, citing the

number of that institution's specific license and stating that the

individual is regularly employed there in a teaching capacity.

(v) Sponsorship, including the payment of a stipend or salary, of a

Cuban scholar to teach or engage in other scholarly activity at a

college or university in the United States (in addition to those

transactions authorized by the general license contained in

Sec. 515.571). Such earnings may be remitted to Cuba as provided in

[[Page 25817]]

Sec. 515.570, or carried on the person of the Cuban scholar returning

to Cuba as provided in Sec. 515.560(d)(3).

(vi) Educational exchanges sponsored by Cuban or U.S. secondary

schools involving secondary school students' participation in a formal

course of study or in a structured educational program offered by a

secondary school or other academic institution and led by a teacher or

other secondary school official. This authorization includes

participation by a reasonable number of adult chaperones to accompany

the secondary school student(s) to Cuba. A secondary school group

planning to engage in such transactions in Cuba must carry a letter

from the secondary school sponsoring the trip, citing the number of the

school's specific license and listing the names of all persons

traveling with the group.

(vii) The organization of and preparation for transactions and

activities described in paragraphs (a)(2)(i) through (a)(2)(vi) of this

section by a full-time employee of a U.S. academic institution. An

individual engaging in such transactions must carry a written letter

from the individual's U.S. academic institution, citing the number of

that institution's specific license and stating that the individual is

regularly employed there.

Note to paragraph (a): See Secs. 501.601 and 501.602 of this

chapter for applicable recordkeeping and reporting requirements.

Exportation of equipment and other items, including the transfer of

technology or software to foreign persons (``deemed exportation''),

and items not eligible for Department of Commerce GFT or BAG License

Exceptions, 15 CFR 740.12 and 740.14, may require separate licensing

from the Department of Commerce.

(b) Specific license. Specific licenses may be issued on a case-by-

case basis authorizing the travel-related transactions set forth in

Sec. 515.560(c) and other transactions that are directly incident to:

(1) Educational activities described in paragraphs (a)(2)(i)

through (a)(2)(iii) of this section not covered by a specific license

issued pursuant to paragraph (a) of this section to an accredited U.S.

academic institution; or

(2) Educational exchanges not involving academic study pursuant to

a degree program when those exchanges take place under the auspices of

an organization that sponsors and organizes such programs to promote

people-to-people contact.

(c) Transactions related to activities that are primarily tourist-

oriented, including self-directed educational activities that are

intended only for personal enrichment, are not authorized by this

section.

30. New Sec. 515.566 is added to read as follows:

Sec. 515.566 Religious activities in Cuba.

(a) Specific license for U.S. religious organizations--(1)

Issuance; renewal. A specific license may be issued to a religious

organization located in the United States authorizing the organization

and individuals and groups affiliated with the organization to engage,

under the auspices of the organization, in religious activities

involving transactions (including travel-related transactions) in which

Cuba or a Cuban national has an interest. The application for the

specific license must set forth examples of religious activities to be

undertaken in Cuba. The religious organization's specific license may

be renewed after a period of two years to authorize the organization

and individuals and groups affiliated with the organization to continue

to engage in the transactions authorized under the organization's

license.

(2) Scope of transactions authorized under U.S. religious

organization's specific license; documentation. Upon receipt by the

religious organization located in the United States of a specific

license pursuant to paragraph (a)(1) of this section, the organization

and individuals or groups affiliated with the organization are

authorized to engage in the travel-related transactions set forth in

Sec. 515.560(c) and such additional transactions as are directly

incident to religious activities in Cuba under the auspices of the

organization. Travel-related transactions pursuant to this

authorization must be for the purpose of engaging, while in Cuba, in a

full-time program of religious activities. Financial and material

donations to Cuba or Cuban nationals are not authorized by this

paragraph (a)(2). All individuals who engage in transactions in which

Cuba or Cuban nationals have an interest (including travel-related

transactions) pursuant to this paragraph (a)(2) must carry with them a

letter from the specifically-licensed U.S. religious organization,

citing the number of the organization's specific license and confirming

that they are affiliated with the organization and are traveling to

Cuba to engage in religious activities under the auspices of the

organization.

Note to paragraph (a): See Secs. 501.601 and 501.602 of this

chapter for applicable recordkeeping and reporting requirements.

Exportation of items to be used in Cuba may require separate

licensing by the Department of Commerce.

(b) 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 other transactions that are directly incident to

religious activities not covered by a specific license issued pursuant

to paragraph (a) of this section to a U.S. religious organization.

Specific licenses may be issued pursuant to this section authorizing

transactions for multiple trips over an extended period of time to

engage in a full-time program of religious activities in Cuba.

31. New Sec. 515.567 is added to read as follows:

Sec. 515.567 Public performances, clinics, workshops, athletic and

other competitions, and exhibitions.

(a) General license. The travel-related transactions set forth in

Sec. 515.560(c) and such additional transactions as are directly

incident to athletic competition by amateur or semi-professional

athletes or amateur or semi-professional athletic teams traveling to

participate in athletic competition held in Cuba are authorized,

provided that:

(1) The athletic competition in Cuba is held under the auspices of

the international sports federation for the relevant sport;

(2) The United States participants in the athletic competition are

selected by the United States federation for the relevant sport; and

(3) The competition is open for attendance, and in relevant

situations participation, by the Cuban public.

Note to paragraph (a): See Secs. 501.601 and 501.602 of this

chapter for applicable recordkeeping and reporting requirements.

Exportation of items to be used in Cuba may require separate

licensing by the Department of Commerce.

(b) Specific licenses. (1) Specific licenses, including for

multiple trips to Cuba over an extended period of time, may be issued

on a case-by-case basis authorizing the travel-related transactions set

forth in Sec. 515.560(c) and other transactions that are directly

incident to participation in a public performance, clinic, workshop,

athletic or other competition, or exhibition in Cuba by participants in

such activities, provided that:

(i) The event is open for attendance, and in relevant situations

participation, by the Cuban public;

(ii) All profits from the event after costs are donated to an

independent nongovernmental organization in Cuba or a U.S.-based

charity, with the objective, to the extent possible, of promoting

people-to-people contacts or otherwise benefitting the Cuban people.

(2) In addition to those transactions authorized by Sec. 515.571,

specific licenses may be issued on a case-by-case basis authorizing

transactions incident to participation in a public

[[Page 25818]]

exhibition, performance, clinic, workshop, or competition in the United

States by a Cuban national who enters the United States for the purpose

of such participation on a visa or other travel authorization issued by

the Department of State.

(c) Specific licenses will not be issued pursuant to this section

authorizing any:

(1) Payment to Cuba or any national thereof for appearance fees or

other such payments in connection with or resulting from any public

exhibition, performance, clinic, workshop, or competition in the United

States or in Cuba; or

(2) Debit to a blocked account.

Sec. 515.568 [Reserved]

32. Section 515.568 is added and reserved.

33. Newly redesignated Sec. 515.569 is revised to read as follows:

Sec. 515.569 Foreign passengers' baggage.

The importation of Cuban-origin goods, otherwise prohibited by this

part, brought into the United States as baggage by any person arriving

in the United States other than a citizen or resident of the United

States is hereby authorized, notwithstanding the provisions of

Sec. 515.803, provided that such goods are not in commercial quantities

and are not imported for resale. This authorization does not apply to

the importation of Cuban-origin alcohol or tobacco products.

34. Section 515.570 is added to read as follows:

Sec. 515.570 Remittances to nationals of Cuba.

(a) Family remittances authorized. (1) Persons subject to the

jurisdiction of the United States who are 18 years of age or older are

authorized to make remittances to a national of Cuba resident in Cuba

or in the authorized trade territory (including any member of his or

her household) who is a close relative of the remitter or of the

remitter's spouse, for the support of the close relative provided that:

(i) The remitter's total remittances pursuant to paragraphs (a) and

(b) of this section to any one Cuban household, regardless of the

number of close relatives comprising the household, do not exceed $300

in any consecutive 3-month period; and

(ii) The remittances are not made from a blocked source, except

that remittances to Cuban households located in the authorized trade

territory may come from a blocked account in a banking institution

within the United States held in the name of, or in which the

beneficial interest is held by, the payee or members of the payee's

household.

(2) A person authorized to make remittances under this paragraph

(a) and who is authorized to engage in travel-related transactions

relating to Cuba pursuant to a general license contained in or specific

license issued pursuant to this part may carry no more than $300 in

total remittances authorized in this paragraph (a), and only if the

remittances will not exceed the maximum amount set forth in paragraph

(a) of this section for any payee within the past 3 months. See

Sec. 515.560(c)(4).

(3) For purposes of this paragraph (a), 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 the

spouse, widow, or widower of any of the foregoing.

Note to paragraph (a): The maximum amount set forth in paragraph

(a) of this section does not apply to remittances to a Cuban

individual who has been specifically licensed as an unblocked

national pursuant to Sec. 515.505(b), as remittances to unblocked

persons do not require separate authorization.

(b) Individual-to-household remittances authorized. (1) Persons

subject to the jurisdiction of the United States who are 18 years of

age or older are authorized to make remittances to any Cuban household

(including to any Cuban individual living alone) located in Cuba or in

the authorized trade territory, provided that:

(i) The remitter's total remittances pursuant to paragraphs (a) and

(b) of this section to any one Cuban household do not exceed $300 in

any consecutive 3-month period;

(ii) No member of the payee's household is a senior-level Cuban

government official or senior-level Cuban communist party official; and

(iii) The remittances are not made from a blocked source, except

that remittances to Cuban households located in the authorized trade

territory may come from a blocked account in a banking institution

within the United States held in the name of, or in which the

beneficial interest is held by, the payee or members of the payee's

household.

(2) A person authorized to make remittances under this paragraph

(b) and who is authorized to engage in travel-related transactions

relating to Cuba pursuant to a general license contained in or specific

license issued pursuant to this part may carry no more than $300 in

total remittances authorized in paragraphs (a) and (b) of this section,

and only if the remittances will not exceed the maximum amount set

forth in paragraph (a) or (b) of this section for any payee within the

past 3 months. See Sec. 515.560(c)(4).

Note to paragraph (b): The maximum amount set forth in paragraph

(b) of this section does not apply to remittances to a Cuban

individual who has been specifically licensed as an unblocked

national pursuant to Sec. 515.505(b), as remittances to unblocked

persons do not require separate authorization.

(c) Emigration-related remittances authorized. Persons subject to

the jurisdiction of the United States are authorized to remit the

following amounts:

(1) Up to $500 on a one-time basis to any Cuban national for the

purpose of covering the payee's preliminary expenses associated with

emigrating from Cuba to the United States. This remittance may be sent

through a licensed remittance forwarding service before the payee has

received a valid visa issued by the State Department or other approved

U.S.-immigration document, but may not be carried to Cuba by the

remitter during this period. A person who is authorized to engage in

travel-related transactions relating to Cuba pursuant to a general

license contained in or specific license issued pursuant to this part

may carry remittances pursuant to this paragraph (c)(1), provided the

traveler can demonstrate each visa recipient's full name and date of

birth and the number and date of issuance of the U.S. visa or other

travel authorization issued. See Sec. 515.560(c)(4). Any amount

remitted or carried to Cuba directly or indirectly in conjunction with

the processing of a letter of invitation or similar document must be

applied against the $500 limit; and

(2) Up to an additional $500 on a one-time basis to any Cuban

national for the purpose of enabling the payee to emigrate from Cuba to

the United States, including for the purchase of airline tickets and

payment of exit or third-country visa fees or other travel-related

fees. Such remittances may be transferred only after the Cuban

individual has received a valid visa issued by the State Department or

other approved U.S. immigration documentation. Persons remitting

amounts pursuant to this paragraph (c)(2) must provide to the

remittance forwarder the visa recipient's full name and date of birth

and the number and date of issuance of the U.S. visa or other travel

authorization issued. A person who is authorized to engage in travel-

[[Page 25819]]

related transactions relating to Cuba pursuant to a general license

contained in or specific license issued pursuant to this part may carry

remittances pursuant to this paragraph (c)(2), provided the traveler

can demonstrate each visa recipient's full name and date of birth and

the number and date of issuance of the U.S. visa or other travel

authorization issued. See Sec. 515.560(c)(4).

(d) Specific licenses. Specific licenses may be issued on a case-

by-case basis authorizing the following:

(1) Remittances by persons subject to U.S. jurisdiction to

independent nongovernmental entities in Cuba;

(2) Repatriation of earnings by a Cuban scholar pursuant to

Sec. 515.565(a)(2)(v) in excess of the amount specified in paragraph

(a) of this section;

(3) Remittances by persons subject to U.S. jurisdiction from

blocked accounts to Cuban households in the authorized trade territory

in excess of the amount specified in paragraphs (a) and (b) of this

section; or

(4) Remittances by persons subject to U.S. jurisdiction to a person

in Cuba, directly or indirectly, for transactions to facilitate non-

immigrant travel by an individual in Cuba to the United States under

circumstances where humanitarian need is demonstrated, including

illness or medical emergency.

35. New Sec. 515.571 is added to read as follows:

Sec. 515.571 Certain transactions incident to travel to, from, and

within the United States by Cuban nationals.

(a) Except as provided in paragraph (c) of this section, the

following transactions by or on behalf of a Cuban national who enters

the United States from Cuba on a visa or other travel authorization

issued by the State Department are authorized:

(1) All transactions ordinarily incident to travel between the

United States and Cuba, including the importation into the United

States of accompanied baggage for personal use;

(2) All transactions ordinarily incident to travel and maintenance

within the United States, including the payment of living expenses and

the acquisition of goods for personal consumption in the United States;

(3) All transactions on behalf of aircraft or vessels incident to

non-scheduled flights or voyages between the United States and Cuba,

provided that the carrier used has a carrier service provider license

issued pursuant to Sec. 515.572. This paragraph does not authorize the

carriage of any merchandise into the United States except accompanied

baggage; and

(4) Normal banking transactions involving foreign currency drafts,

travelers' checks, or other instruments negotiated incident to travel

in the United States by any person under the authority of this section.

(b) Payments and transfers of credit in the United States from

blocked accounts in domestic banking institutions held in the name of a

Cuban national who enters the United States on a visa or other travel

authorization issued by the State Department to or upon the order of

such Cuban national are authorized provided that:

(1) Such payments and transfers of credit are made only for the

living, traveling, and similar personal expenses in the United States

of such Cuban national or his or her family;

(2) The total of all such payments and transfers of credit made

under this section from the accounts of such Cuban national do not

exceed $250 in any one calendar month; and

(3) No payment or transfer is made from a blocked account in which

a specially designated national has an interest.

(c) This section does not authorize any transfer of property to

Cuba, or, except as otherwise authorized in paragraph (b) of this

section, any debit to a blocked account.

36. Newly redesignated Sec. 515.572 is amended as follows:

A. The section heading is revised as set forth below.

B. The word ``family'' is removed wherever it appears.

C. Paragraph (c)(4)(ii) is amended by removing the words ``other

than close relatives as defined in Sec. 515.563(b)'' and adding in

their place the words ``ineligible to receive them under

Sec. 515.570''.

D. Paragraph (d)(2) is amended by removing ``Sec. 515.601'' and

adding in its place ``Sec. 501.601 of this chapter'' and by removing

``Sec. 515.602'' and adding in its place Sec. 501.602 of this

chapter``.

E. Paragraph (e)(2)(ii)(A) is amended by removing

``Sec. 515.566(e)(3)'' and adding in its place ``paragraph (e)(3) of

this section''.

F. Paragraph (e)(2)(ii)(D) is amended by removing

``Sec. 515.566(b)'' and adding in its place ``paragraph (b) of this

section''.

G. Paragraph (e)(3)(iii) introductory text is amended by removing

``Sec. 515.566,'' and adding in its place ``this section,''.

H. Paragraph (c)(4)(i) is revised to read as follows:

Sec. 515.572 Authorization of transactions incident to the provision

of travel services, carrier services, and remittance forwarding

services.

* * * * *

(c) * * *

(4)(i) In the case of applications for authorization to serve as

travel or carrier service providers, a report on the forms and other

procedures used to establish that each customer is in full compliance

with U.S. law implementing the Cuban embargo and either qualifies for

one of the general licenses contained in this part authorizing travel-

related transactions in connection with travel to Cuba, has received a

specific license from the Office of Foreign Assets Control issued

pursuant to this part, or is a fully-hosted traveler as described in

Sec. 515.420. In the case of a customer traveling pursuant to a general

license or claiming to be traveling fully hosted, the applicant must

demonstrate that it requires each customer to attest, in a signed

statement, to his or her qualification for the particular general

license or fully-hosted status claimed. The statement must provide

facts supporting the customer's belief that he or she qualifies for the

general license or fully-hosted status claimed. In the case of a

customer traveling under a specific license, the applicant must

demonstrate that it requires the customer to furnish it with a copy of

the license. The copy of the signed statement or the specific license

must be maintained on file with the applicant.

* * * * *

37. The introductory text of paragraph (a) of Sec. 515.574 is

revised to read as follows:

Sec. 515.574 Support for the Cuban people.

(a) Specific licenses may be issued on a case-by-case basis

authorizing the travel-related transactions set forth in

Sec. 515.560(c) and other transactions that are intended to provide

support for the Cuban people including, but not limited to, the

following:

* * * * *

38. New Sec. 515.575 is added to subpart E to read as follows:

Sec. 515.575 Humanitarian projects.

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

additional transactions as are directly incident to certain

humanitarian projects in or related to Cuba not otherwise covered by

this part that are designed to directly benefit the Cuban people. Such

projects may include, but are not limited to, medical and health-

related projects, environmental projects, projects

[[Page 25820]]

involving non-formal educational training including adult literacy and

vocational skills, community-based grass roots projects, projects

suitable to the development of small-scale private enterprise, projects

that are related to agricultural and rural development which promote

independent activity, and projects involving the donation of goods to

meet basic human needs as provided in 15 CFR 740.12(b) of the Export

Administration Regulations, 15 CFR parts 730-774. Specific licenses may

be issued authorizing transactions for multiple visits for the same

project over an extended period of time by applicants demonstrating a

significant record of overseas humanitarian projects.

39. New Sec. 515.576 is added to subpart E to read as follows:

Sec. 515.576 Activities of private foundations or research or

educational institutes.

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

additional transactions as are directly incident to activities by

private foundations or research or educational institutes that have an

established interest in international relations to collect information

related to Cuba for noncommercial purposes, not otherwise covered by

the general license for professional research contained in Sec. 515.564

or more properly issued under Sec. 515.575, relating to humanitarian

projects. Specific licenses may be issued pursuant to this section

authorizing transactions for multiple trips to Cuba for the same

project over an extended period of time.

Dated: April 30, 1999.

R. Richard Newcomb,

Director, Office of Foreign Assets Control.

Approved: May 5, 1999.

Elisabeth A. Bresee,

Assistant Secretary (Enforcement), Department of the Treasury.

[FR Doc. 99-12083 Filed 5-10-99; 3:39 pm]

BILLING CODE 4810-25-F