80 FR 56898 - Enhancing Support for the Cuban People
DEPARTMENT OF COMMERCE
Bureau of Industry and Security Federal Register Volume 80, Issue 182 (September 21, 2015)
Bureau of Industry and Security
Federal Register Volume 80, Issue 182 (September 21, 2015)
| Page Range | 56898-56904 | |
| FR Document | 2015-23495 |
[Federal Register Volume 80, Number 182 (Monday, September 21, 2015)] [Rules and Regulations] [Pages 56898-56904] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-23495] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF COMMERCE Bureau of Industry and Security 15 CFR Parts 740, 746, and 772 [Docket No. 150825774-5774-01] RIN 0694-AG67 Enhancing Support for the Cuban People AGENCY: Bureau of Industry and Security, Commerce. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: This rule amends the Export Administration Regulations (EAR) to expand the scope of License Exception Support for the Cuban People (SCP) to facilitate engagement between the U.S. and Cuban people; the free flow of information to, from, and among the Cuban people; and independent economic activity generated by Cuba's private sector. It also makes temporary sojourns of most vessels to Cuba eligible for License Exception Aircraft, Vessels and Spacecraft (AVS). Additionally, this rule creates a case-by-case review policy of license applications to export and reexport to Cuba items to ensure the safety of civil aviation and safe operation of commercial passenger aircraft. Finally, it amends the deemed export and deemed reexport license requirements for releases of technology and source code to Cuban nationals; removes certain unintended restrictions on exports and reexports under License Exception SCP and License Exception Consumer Communications Devices (CCD); and makes certain technical corrections to License Exception Agricultural Commodities (AGR). DATES: This rule is effective September 21, 2015. FOR FURTHER INFORMATION CONTACT: Foreign Policy Division, Office of Nonproliferation and Treaty Compliance, Bureau of Industry and Security, Phone: (202) 482-4252. SUPPLEMENTARY INFORMATION: Background The United States maintains a comprehensive embargo on trade with Cuba. Pursuant to that embargo, all items that are subject to the Export Administration Regulations (EAR) [[Page 56899]] require a license for export or reexport to Cuba unless authorized by a license exception. The Bureau of Industry and Security (BIS) administers export and reexport restrictions on Cuba consistent with U.S. policy and relevant law. Accordingly, BIS may issue specific or general authorizations in the form of licenses or license exceptions for transactions that support the goals of United States policy while the embargo remains in effect. On December 17, 2014, the President announced that the United States is taking steps to chart a new course in bilateral relations with Cuba and to further engage and empower the Cuban people. The President explained that these steps build upon actions taken since 2009 that have been aimed at supporting the ability of the Cuban people to gain greater control over their own lives and determine their country's future. On January 16, 2015, the Commerce and Treasury Departments took coordinated actions to implement certain elements of this policy, including changes to licensing policy and license exceptions in the EAR that are consistent with U.S. support for the Cuban people (see 80 FR 2286 and 80 FR 2291). Additionally, BIS published a rule implementing the May 29, 2015 rescission of Cuba's State Sponsor of Terrorism designation on July 22, 2015 (see 80 FR 43314). The Commerce and Treasury Departments are taking additional coordinated actions in support of the President's Cuba policy. This rule amends the terms of existing license exceptions that are available for Cuba, increases the number of license exception provisions that are available for Cuba, and creates a new licensing policy in the EAR to further promote private sector economic activity in Cuba, facilitate travel to Cuba for authorized purposes, and help ensure safety in civil aviation and safe operation of commercial passenger aircraft. This rule also makes the deemed export and deemed reexport license requirements for Cuba consistent with other sanctioned destinations. Specific Changes Made by This Rule Expansion of License Exception Support for the Cuban People (SCP) This rule revises Sec. 740.21(b) and (d)(1) of the EAR to remove a requirement that items must be sold or donated when exported or reexported to authorized end-users in Cuba under License Exception Support for the Cuban People (SCP). Paragraph (b) authorizes certain exports and reexports to improve living conditions and support independent economic activity in Cuba. Paragraph (d)(1) authorizes certain exports and reexports to improve the free flow of information to, from, and among the Cuban people. When License Exception SCP was created in January 2015, BIS included text regarding sales or donations in paragraphs (b) and (d)(1) to clarify that the provisions were not limited to exports and reexports of donated items. However, the construction of the sentences addressing sales or donations inadvertently precluded other types of exports and reexports intended to be covered under the license exception, such as those involving leased or loaned items. Consequently, BIS is removing the portions of paragraphs (b) and (d)(1) of License Exception SCP that refer to sales or donations of items to eliminate those unintended restrictions. This rule revises paragraph (c)(2) of License Exception SCP to authorize certain temporary reexports to Cuba. Paragraph (c)(2) previously authorized certain temporary exports of items to Cuba from the United States for use in scientific, archeological, cultural, ecological, educational, historic preservation, or sporting activities, or in the traveler's professional research. This change authorizes travelers departing the United States or a foreign country to temporarily export or reexport authorized items to Cuba for eligible end-uses. Additionally, this rule adds professional meetings to the list of eligible end-uses in paragraph (c)(2). This rule also introduces a requirement that the items remain under the traveler's ``effective control.'' The existing EAR definition of effective control in Sec. 772.1 applies to this use of the term. Eligible items continue to be limited to items subject to the EAR but not specified in any Export Control Classification Number (ECCN), i.e., EAR99) or controlled on the Commerce Control List (CCL) only for anti-terrorism reasons. This rule adds a new paragraph (d)(4) to License Exception SCP to authorize exports and reexports of commodities and software to individuals and private sector entities in Cuba that will be used to develop software that will improve the free flow of information or that will support the private sector activities described in paragraph (b) of License Exception SCP. The Cuban Government, Cuban Communist Party and certain officials thereof are designated as ineligible end users for commodities and software exported under paragraph (d)(4). Existing text in paragraph (d) limits the commodities and software authorized for export or reexport under this new paragraph (d)(4) to those that are either EAR99 (i.e., items subject to the EAR but not specified in any ECCN) or controlled on the CCL for anti-terrorism reasons only. For example, to qualify for export or reexport under new paragraph (d)(4), a general purpose software development kit must be either EAR99 or controlled in an ECCN where the only reason for control that applies to that kit is anti-terrorism and the kit's use in Cuba must be to develop software that will improve the free flow of communication and/or that will support the private sector activities described in paragraph (b) of License Exception SCP. This rule adds a new paragraph (e) to License Exception SCP. Paragraph (e)(1) authorizes the export and reexport to Cuba of certain items for use by United States Persons (as defined in Sec. 772.1 of the EAR) to establish, maintain, or operate a physical presence in Cuba. Any resulting payments associated with such a physical presence, such as lease payments, are permitted only to the extent authorized by Sec. 515.573 of the Cuban Assets Control Regulations (31 CFR 515.573). To be eligible for the exception under paragraph (e)(1), the end-users must be (1) entities organizing or conducting educational activities in Cuba authorized by the Department of the Treasury, Office of Foreign Assets Control (OFAC) pursuant to 31 CFR 515.565(a); (2) entities providing mail or parcel transmission services authorized by OFAC pursuant to 31 CFR 515.542(a) or providing cargo transportation services in connection with trade involving Cuba authorized by OFAC or exempt from the prohibitions of 31 CFR part 515 as specified in 31 CFR 515.206; (3) religious organizations engaging in religious activities in Cuba authorized by OFAC pursuant to 31 CFR 515.566; (4) persons engaged in transactions authorized by OFAC pursuant to 31 CFR 515.559(b); (5) persons that export or reexport items to Cuba that are exempt from the prohibitions of 31 CFR part 515 as specified in 31 CFR 515.206; (6) providers of travel services or carrier services authorized by OFAC pursuant to 31 CFR 515.572; or (7) persons that export or reexport to Cuba pursuant to a license issued by BIS or a license exception authorized by Sec. 746.2(a)(1) of the EAR. Items eligible for export and reexport to Cuba pursuant to paragraph (e)(1) of License Exception SCP are limited to those designated as EAR99 (i.e., items subject to the EAR but not specified in any ECCN) or controlled on the CCL only for anti-terrorism reasons. Paragraph (e)(2) of License Exception SCP authorizes the export and reexport to Cuba of certain items for use by certain additional eligible end-users to [[Page 56900]] establish, maintain, and operate a physical presence in Cuba. Any resulting payments associated with such a physical presence, such as lease payments, are permitted only to the extent authorized by Sec. 515.573 of the Cuban Assets Control Regulations (31 CFR 515.573). To be eligible for paragraph (e)(2), the end-users must be authorized by OFAC to provide telecommunications services and establish telecommunications facilities pursuant to 31 CFR 515.542(b)-(e) or to provide internet- based services pursuant to 31 CFR 515.578, including subsidiaries, branches, offices, joint ventures, franchises, and agency or other business relationships with any entity or individual who is a national of Cuba. The items authorized pursuant to paragraph (e)(2) are limited to those designated as EAR99 (i.e., items subject to the EAR but not specified in any ECCN) or controlled on the CCL only for anti-terrorism reasons. Paragraph (e)(3) of License Exception SCP authorizes the export and reexport to Cuba of certain items to be given away for free as gifts for promotional purposes, such as pens, notepads, hats, and t-shirts. Items eligible for export or reexport to Cuba pursuant to paragraph (e)(3) are limited to those items of a type normally given away for free as gifts for promotional purposes that are designated as EAR99. BIS is creating paragraph (e) of License Exception SCP to facilitate engagement between the U.S. and Cuban people; the free flow of information to, from, and among the Cuban people; and independent economic activity in Cuba generated by Cuba's private sector. This rule also creates new paragraph (f) to License Exception SCP to authorize certain temporary (not to exceed one year) exports and reexports to Cuba of EAR99 items and items controlled on the CCL only for anti-terrorism reasons. Paragraph (f) authorizes exports and reexports of the following:Commodities and software as tools of trade for use by the exporters or employees of the exporters to install, service or repair items that are subject to the EAR and that have been exported or reexported to Cuba under a license or license exception, or foreign- origin items that are not subject to the EAR but are owned and used exclusively by individuals or private sector entities but not the Cuban Government, the Cuban Communist Party or certain officials thereof in Cuba; Technology as tools of trade for use by certain persons for the installation, servicing or repair of items that are subject to the EAR and that have been exported or reexported to Cuba under a license or license exception, or foreign-origin items that are not subject to the EAR but are owned and used exclusively by individuals or private sector entities but not the Cuban Government, the Cuban Communist Party or certain officials thereof in Cuba; Kits of replacement parts or components for items that have been exported or reexported to Cuba under a license or license exception, or foreign-origin items that are not subject to the EAR but are owned and used exclusively by individuals or private sector entities but not the Cuban Government, the Cuban Communist Party or certain officials thereof in Cuba; Commodities and software for exhibition or demonstration at trade shows or to parties eligible to receive items under License Exception SCP; and Containers that are necessary for shipment of commodities being exported or reexported to Cuba under a license or license exception; BIS is creating paragraph (f) of License Exception SCP to help support authorized travel and commerce. Expansion of License Exception Consumer Communications Devices (CCD) This rule revises Sec. 740.19(a) of the EAR to remove references to sales or donations of eligible items authorized under License Exception CCD. License Exception CCD authorizes certain exports and reexports to improve the free flow of information to, from, and among the Cuban and Sudanese people. When License Exception CCD was created in September 2009 to authorize certain exports and reexports to Cuba, the license exception included a donation requirement. BIS revised License Exception CCD in January 2015 to authorize sales, in addition to donations, and to update the list of eligible items. (Sudan was added as an authorized destination in February 2015.) Instead of merely removing the word ``donated'' from paragraph (a) of License Exception CCD, the January 2015 revision added the phrase ``either sold or'' to that paragraph. That phrasing inadvertently precluded other types of exports and reexports intended to be authorized by the license exception, such as those involving leased or loaned items. Consequently, this rule removes phrase ``either sold or donated'' from paragraph (a) to eliminate that unintended restriction. Availability of License Exception Aircraft, Vessels and Spacecraft (AVS) This rule revises Sec. 746.2(a)(1)(x) of the EAR to make paragraphs (b) and (d) of License Exception AVS available for Cuba. It also amends Sec. 740.15(b) and (d) of the EAR to add to License Exception AVS paragraphs (b)(4) and (d)(6) described below that apply only to Cuba. Paragraph (b) of License Exception AVS authorizes certain exports and reexports of equipment and spare parts for permanent use on vessels and aircraft departing the United States. The paragraph also authorizes certain exports of ship and plane stores for use on board vessels and aircraft departing the United States. Paragraph (d) of License Exception AVS authorizes certain exports and reexports of vessels on temporary sojourn. Paragraph (a) of License Exception AVS, which authorizes certain exports and reexports of aircraft on temporary sojourn, was, prior to publication of this rule, available for Cuba. This rule adds a note to paragraph (a) prohibiting an aircraft exported or reexported to a country pursuant to that paragraph from remaining in that country for more than seven consecutive days before it departs for a country to which it may be exported without a license or the United States. This rule also adds new paragraph (b)(4) to License Exception AVS to specify that the commodities eligible for export and reexport to Cuba pursuant to paragraph (b) are limited to those designated as EAR99 (i.e., items subject to the EAR but not specified in any ECCN) or controlled on the CCL only for anti-terrorism reasons. Additionally, this rule adds new paragraph (d)(6) to License Exception AVS. Paragraph (d)(6) provides that only certain categories of vessels, when engaged in specified activities are eligible for the license exception when destined for Cuba. The types of vessels and activities eligible for temporary sojourn to Cuba are as follows. (1) Cargo vessels for hire for use in the transportation of items. (2) Passenger vessels for hire for use in the transportation of passengers and/or items. Vessels used to transport both passengers and items to Cuba may transport automobiles only if the export or reexport of the automobiles has been authorized by a separate license issued by BIS (i.e., not authorized by license exception). The export or reexport to Cuba of personally owned vehicles is not normally necessary to support authorized travel. However, if the need arises, the exporter or reexporter may [[Page 56901]] submit a license application to BIS for review pursuant to the licensing policy in Sec. 746.2 of the EAR. (3) Recreational vessels destined for Cuba that that are used in connection with travel authorized by the Department of the Treasury, Office of Foreign Assets Control (OFAC). Finally, this rule adds a note to paragraph (d) prohibiting a vessel exported or reexported to a country pursuant to that paragraph from remaining in that country for more than 14 consecutive days before it departs for a country to which it may be exported without a license or the United States. BIS is making paragraphs (b) and (d) of License Exception AVS available for Cuba to help facilitate authorized travel and commerce. For clarity, BIS is adding notes to paragraphs (a) and (d) specifying the amount of time an aircraft or vessel exported or reexported to a country pursuant to the paragraphs may remain in that country. Previously, BIS interpreted paragraph (a) to authorize temporary sojourns consisting of only one overnight stay while in-country (see 57 FR 30899, July 13, 1992). BIS selected the time periods of seven days for aircraft and 14 days for vessels based on its experience in licensing aircraft and vessels for temporary sojourn to Cuba. The vast majority of such licenses were for stays of seven days or less for aircraft and 14 days or less for vessels. New Licensing Policy for Civil Aviation Safety This rule amends the licensing policy for Cuba in Sec. 746.2 of the EAR to add a policy of case-by-case review of license applications for exports and reexports of items to ensure safety in civil aviation and safe operation of commercial passenger aircraft. Items that will be reviewed pursuant to this policy include aircraft parts and components related to safety of flight, weather observation stations, airport safety equipment, and commodities used for security screening of passengers. BIS is adding this licensing policy to support international aviation and passenger safety. Scope of License Requirements for Deemed Exports and Reexports This rule amends the license requirements for Cuba in Sec. 746.2 of the EAR to specify that a license is required for the release of technology or source code on the CCL to Cuban nationals in the United States or a third country, but not for the deemed export or deemed reexport of technology or source code designated as EAR99. As described in Sec. 734.2(b), any release of technology or source code subject to the EAR is deemed to be an export to the home country or countries of the foreign national unless the foreign national is lawfully admitted for permanent residence in the United States or unless the foreign national is a protected individual under the Immigration and Nationality Act (8 U.S.C. 1324b(a)(3)). Additionally, any release of technology or source code subject to the EAR to a foreign national of another country is deemed to be a reexport to the home country or countries of the foreign national unless the foreign national is lawfully admitted for permanent residence. Prior to this amendment, a license was required for the deemed export or deemed reexport of any technology or source code subject to the EAR to a Cuban national. BIS is making this change for consistency with the current deemed export and deemed reexport license requirements for other sanctioned destinations. Technical Corrections to License Exception Agricultural Commodities (AGR) On July 22, 2015, BIS published a rule implementing the rescission of Cuba's State Sponsor of Terrorism designation (80 FR 43314). Among other amendments, that rule removed Cuba from Country Group E:1 in Supplement No. 1 to part 740 of the EAR, which changed the general de minimis level for Cuba from 10 to 25 percent. Although the rule made certain technical and conforming changes to the EAR, BIS overlooked references to the former 10 percent de minimis level in paragraph (b)(3) of License Exception Agricultural Commodities (AGR) in Sec. 740.18 of the EAR. Consequently, this rule corrects the de minimis percentages referenced in paragraph (b)(3) of License Exception AGR. Conforming Changes to Definition of U.S. Person Paragraph (a) of the definition of U.S. Person in Sec. 772.1 of the EAR identifies the EAR provisions to which the definition applies. This rule adds a reference to Sec. 740.21(e)(1) to paragraph (a) of the definition. Paragraph (b) of the definition identifies EAR provisions that have definitions that are specific to those provisions. This rule adds a reference to Sec. 740.21(f)(2) to paragraph (b) of the definition. Both changes are to make those paragraphs conform to changes that this rule makes to Sec. 740.21. Export Administration Act Although the Export Administration Act expired on August 20, 2001, the President, through Executive Order 13222 of August 17, 2001, 3 CFR, 2001 Comp., p. 783 (2002), as amended by Executive Order 13637 of March 8, 2013, 78 FR 16129 (March 13, 2013), and as extended by the Notice of August 7, 2015, 80 FR 48233 (August 11, 2015), has continued the Export Administration Regulations in effect under the International Emergency Economic Powers Act. BIS continues to carry out the provisions of the Export Administration Act, as appropriate and to the extent permitted by law, pursuant to Executive Order 13222 as amended by Executive Order 13637. Rulemaking Requirements 1. Executive Orders 13563 and 12866 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This rule has been designated a ``significant regulatory action,'' although not economically significant, under section 3(f) of Executive Order 12866. Accordingly, the rule has been reviewed by the Office of Management and Budget (OMB). 2. Notwithstanding any other provision of law, no person is required to respond to, nor shall any person be subject to a penalty for failure to comply with, a collection of information subject to the requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA), unless that collection of information displays a currently valid OMB control number. This rule involves a collection of information approved under OMB control number 0694-0088--Simplified Network Application Processing+ System (SNAP+) and the Multipurpose Export License Application, which are the methods for submitting all license applications, commodity classification requests and similar requests to BIS. The estimated annual total burden of all of those submissions is 31,833 hours. BIS believes that this rule will slightly reduce that burden because additional transactions will be eligible for export or reexport to Cuba pursuant to license exception, thereby reducing the number of license applications submitted to BIS. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing the burden, to Jasmeet K. Seehra, Office of [[Page 56902]] Management and Budget, by email at [email protected] or by fax to (202) 395-7285 and to William Arvin at [email protected]. 3. This rule does not contain policies with Federalism implications as that term is defined under Executive Order 13132. 4. The provisions of the Administrative Procedure Act (5 U.S.C. 553) requiring notice of proposed rulemaking, the opportunity for public participation, and a delay in effective date, are inapplicable because this regulation involves a military or foreign affairs function of the United States (See 5 U.S.C. 553(a)(1)). This rule is a part of a foreign policy initiative to change the nature of the relationship between Cuba and the United States announced by the President on December 17, 2014. Delay in implementing this rule to obtain public comment would undermine the foreign policy objectives that the rule is intended to implement. Further, no other law requires that a notice of proposed rulemaking and an opportunity for public comment be given for this rule. Because a notice of proposed rulemaking and an opportunity for public comment are not required to be given for this rule under 5 U.S.C. 553, or by any other law, the requirements of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) are not applicable. List of Subjects 15 CFR Part 740 Administrative practice and procedure, Exports, Reporting and recordkeeping requirements. 15 CFR Part 746 Exports, Reporting and recordkeeping requirements. 15 CFR Part 772 Exports. For the reasons set forth in the preamble, the Export Administration Regulations (15 CFR parts 730 through 774) are amended as follows: PART 740--[AMENDED] 0 1. The authority citation for 15 CFR part 740 continues to read as follows: Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 22 U.S.C. 7201 et seq.; E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 7, 2015, 80 FR 48233 (August 11, 2015). 0 2. Section 740.15 is amended by adding: 0 a. A note to paragraph (a); 0 b. Paragraphs (b)(4) and (d)(6); and 0 c. A note to paragraph (d). The additions read as follows: Sec. 740.15 Aircraft, vessels and spacecraft (AVS). * * * * * (a) * * * Note to paragraph (a). An aircraft exported or reexported to a country pursuant to this paragraph (a) may not remain in that country for more than seven consecutive days before it departs for a country to which it may be exported without a license or the United States. (b) * * * (4) Cuba. Only items designated as EAR99 or controlled on the Commerce Control List (CCL) (Supplement No. 1 to part 774 of the EAR) only for anti-terrorism reasons (i.e., anti-terrorism must be the only reason for control that applies to the item as set forth in the Export Control Classification Number (ECCN) that controls the item) are eligible for export or reexport to Cuba pursuant to this paragraph (b). * * * * * (d) * * * (6) Cuba. Only the types of vessels listed in this paragraph (d)(6) departing for Cuba for the purposes listed in this paragraph (d)(6) may depart for Cuba pursuant to this paragraph (d). Vessels used to transport both passengers and items to Cuba may transport automobiles only if the export or reexport of the automobiles to Cuba have been authorized by a separate license issued by BIS (i.e., not authorized by license exception). (i) Cargo vessels for hire for use in the transportation of items; (ii) Passenger vessels for hire for use in the transportation of passengers and/or items; and (iii) Recreational vessels that are used in connection with travel authorized by the Department of the Treasury, Office of Foreign Assets Control (OFAC). Note to paragraph (d). A vessel exported or reexported to a country pursuant to this paragraph (d) may not remain in that country for more than 14 consecutive days before it departs for a country to which it may be exported without a license or the United States. * * * * * Sec. 740.18--[Amended] 0 3. Section 740.18 is amended by removing the number ``10%'' wherever it appears in paragraph (b)(3) and adding in its place the number ``25%''. Sec. 740.19--[Amended] 0 4. Section 740.19 is amended by removing ``, either sold or donated,'' from paragraph (a). 0 5. Section 740.21 is amended by: 0 a. Removing the third sentence from paragraph (b) introductory text; 0 b. Revising paragraph (c)(2) introductory text; 0 c. Redesignating paragraph (c)(2)(iii) and (iv) as paragraphs (c)(2)(iv) and (v), respectively; 0 d. Adding paragraph (c)(2)(iii); 0 e. Removing ``, either sold or donated,'' from paragraph (d)(1); and 0 f. Adding paragraphs (d)(4), (e), and (f). The revision and additions read as follows: Sec. 740.21 Support for the Cuban People (SCP). * * * * * (c) * * * (2) The temporary export or reexport to Cuba of items by travelers to Cuba for the travelers' use in scientific, archeological, cultural, ecological, educational, historic preservation, or sporting activities, or professional meetings or research. The following requirements apply: * * * * * (iii) The items must remain under the traveler's ``effective control'' while in Cuba. * * * * * (d) * * * (4) The export or reexport to Cuba of commodities or software that will be used by individuals or private sector entities to develop software that will improve the free flow of information or that will support the private sector activities described in paragraph (b) of this section. The following are ineligible end-users: (i) The Cuban Government or the Cuban Communist Party and organizations they administer or control; (ii) Ministers and vice-ministers; members of the Council of State; members of the Council of Ministers; members and employees of the National Assembly of People's Power; members of any provincial assembly; local sector chiefs of the Committees for the Defense of the Revolution; Director Generals and sub-Director Generals and higher of all Cuban ministries and state agencies; employees of the Ministry of the Interior (MININT); employees of the Ministry of Defense (MINFAR); secretaries and first secretaries of the Confederation of Labor of Cuba (CTC) and its component unions; chief editors, editors and deputy editors of Cuban state-run media organizations and programs, including newspapers, television, and radio; or members and employees of the Supreme Court (Tribuno Supremo Nacional); and [[Page 56903]] (iii) Members of the Politburo; the Central Committee; Department Heads of the Central Committee; employees of the Central Committee; and the secretaries and first secretaries of provincial Party central committees. (e) Facilitating engagement, communications, and commerce. This paragraph (e) authorizes the export or reexport to Cuba of certain items intended to facilitate engagement between the U.S. and Cuban people; the free flow of information to, from, and among the Cuban people; and independent economic activity in Cuba. The export or reexport must be within one or more of the following categories: (1) The export or reexport to Cuba of items for use by eligible end-users to establish, maintain, or operate a physical presence in Cuba. The items authorized pursuant to this paragraph (e)(1) are limited to those designated as EAR99 (i.e., items subject to the EAR but not specified in any ECCN) or controlled on the CCL only for anti- terrorism reasons. To be eligible, the end-users must be ``U.S. Persons,'' as defined in Sec. 772.1 of the EAR, and must fall within one of the following categories: (i) Entities organizing or conducting educational activities in Cuba authorized by the Department of the Treasury, Office of Foreign Assets Control (OFAC) pursuant to 31 CFR 515.565(a); (ii) Entities providing mail or parcel transmission services authorized by OFAC pursuant to 31 CFR 515.542(a) or providing cargo transportation services in connection with trade involving Cuba authorized by OFAC or exempt from the prohibitions of 31 CFR part 515 as specified in 31 CFR 515.206; (iii) Religious organizations engaging in religious activities in Cuba authorized by OFAC pursuant to 31 CFR 515.566; (iv) Persons engaged in transactions authorized by OFAC pursuant to 31 CFR 515.559(b); (v) Persons that export or reexport items to Cuba that are exempt from the prohibitions of 31 CFR part 515 as specified in 31 CFR 515.206; (vi) Providers of travel services or carrier services authorized by OFAC pursuant to 31 CFR 515.572; or (vii) Persons that export or reexport to Cuba pursuant to a license issued by BIS or a license exception authorized by Sec. 746.2(a)(1) of the EAR. (2) The export or reexport to Cuba of certain items for use by eligible end-users to establish, maintain, or operate a physical presence in Cuba. To be eligible for this paragraph (e)(2), the end- users must be authorized by OFAC to provide telecommunications services and establish telecommunications facilities pursuant to 31 CFR 515.542(b) through (e) or to provide internet-based services pursuant to 31 CFR 515.578, including subsidiaries, branches, offices, joint ventures, franchises, and agency or other business relationships with any entity or individual who is a national of Cuba. The items authorized pursuant to this paragraph are limited to those designated as EAR99 (i.e., items subject to the EAR but not specified in any ECCN) or controlled on the CCL only for anti-terrorism reasons. (3) The export or reexport to Cuba of items to be given away for free as gifts for promotional purposes. Items authorized pursuant to this paragraph (e)(3) are limited to those items of a type normally given away for free as gifts for promotional purposes that are designated as EAR99 (i.e., items subject to the EAR but not specified in any ECCN). Note to paragraph (e). Any resulting payments associated with establishing maintaining or operating a physical presence in Cuba, such as lease payments, are permitted only to the extent authorized by Sec. 515.573 of the Cuban Assets Control Regulations (31 CFR 515.573). (f) Temporary exports and reexports to Cuba. This paragraph (f) authorizes the export or reexport to Cuba, for periods not exceeding one year, of certain items designated as EAR99 or controlled only for anti-terrorism reasons on the CCL (i.e., anti-terrorism must be the only reason for control that applies to the item as set forth in the ECCN that controls the item). If any other reason for control applies to the item, it is not authorized for export or reexport by this paragraph. This paragraph does not authorize any transaction if the exporter or reexporter has ``knowledge'' that the item is intended to remain in Cuba for more than one year; if an order to acquire the item, such as a purchase order, has been received before shipment; or when the item is for subsequent lease or rental. The export or reexport must be within one or more of the following categories. (1) Tools of trade--commodities and software. Commodities or software to be used by the exporter or reexporter or its employees for the installation, servicing or repair of items that are subject to the EAR and that have been exported or reexported to Cuba under a license or license exception, or foreign-origin items that are not subject to the EAR that are owned and used exclusively by private sector entities in Cuba, may be exported or reexported under this paragraph (f). The commodities or software must remain under the ``effective control'' of the exporter or reexporter or its employees. Examples of security precautions to help prevent unauthorized access include the following: (i) Use of secure connections, such as Virtual Private Network connections, when accessing IT networks for activities that involve the transmission and use of the software authorized under this license exception; (ii) Use of password systems on electronic devices that store the software authorized under this license exception; and (iii) Use of personal firewalls on electronic devices that store the software authorized under this license exception. (2) Tools of trade--technology. Technology to be used by a `U.S. person' exporter or reexporter or its employees who are traveling to or on temporary assignment in Cuba for the installation, servicing or repair of items that are subject to the EAR and that have been exported or reexported to Cuba under a license or license exception, or foreign- origin items that are not subject to the EAR that are owned and used exclusively by private sector entities in Cuba, may be exported or reexported under this paragraph (f). For purposes of this paragraph (f)(2), a `U.S. person' is: an individual who is a citizen of the United States, an individual who is ``lawfully admitted for permanent residence'' in the United States as defined by 8 U.S.C. 1101(a)(20) or an individual who is a protected individual as defined by 8 U.S.C. 1324b(a)(3). `U.S. person' also means any juridical person organized under the laws of the United States, or any jurisdiction within the United States (e.g., corporation, business association, partnership, society, trust, or any other entity, organization or group that is authorized to do business in the United States). If the employee who will use the technology is not a `U.S. person,' the release of that technology to that employee must either not require a license or be authorized by a license or a license exception other than this section before it may be exported or reexported to that employee under this paragraph. The exporter or reexporter and the recipient of the technology must take security precautions to protect against unauthorized release of the technology while the technology is being shipped or transmitted and used overseas. Examples of security precautions to help prevent unauthorized access include the following: (i) Use of secure connections, such as Virtual Private Network connections, when accessing IT networks for email [[Page 56904]] and other business activities that involve the transmission and use of the technology authorized under this license exception; (ii) Use of password systems on electronic devices that will store the technology authorized under this license exception; and (iii) Use of personal firewalls on electronic devices that will store the technology authorized under this license exception. (3) Kits of replacement ``parts'' or ``components.'' Kits consisting of replacement ``parts'' or ``components'' for items that have been exported or reexported to Cuba under a license or license exception, or foreign-origin items that are not subject to the EAR that are owned and used exclusively by private sector entities in Cuba, may be exported or reexported under this paragraph (f)(3) provided: (i) The kits remain under ``effective control'' of the exporter or reexporter or its employees; and (ii) All parts and components in the kit are returned, except that one-for-one replacements may be made in accordance with the requirements of License Exception Servicing and Replacement of Parts and Equipment (RPL) and the defective parts and components returned (see Parts, Components, Accessories and Attachments in Sec. 740.10(a)). (4) Exhibition and demonstration. Commodities or software for exhibition or demonstration at trade shows, or to any entity that would be eligible to receive the commodities or software under paragraphs (a) through (e) of this section, may be exported or reexported under this paragraph (f). The commodities or software must remain under the ``effective control'' of the exporter or reexporter or its private sector agent, may not be exhibited or demonstrated at any one location for more than 30 days and may not be used for more than the minimum extent required for effective exhibition or demonstration. (5) Containers. Containers that would require a license for export or reexport to Cuba but that are necessary for shipment of commodities being exported to Cuba under a license or license exception may be exported or reexported to Cuba. However, this paragraph (f) does not authorize the export of the container's contents, which, if not exempt from licensing, must be separately authorized for export or reexport under either a license or a license exception. PART 746--[AMENDED] 0 6. The authority citation for 15 CFR part 746 continues to read as follows: Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 22 U.S.C. 287c; Sec 1503, Pub. L. 108-11, 117 Stat. 559; 22 U.S.C. 6004; 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 12854, 58 FR 36587, 3 CFR, 1993 Comp., p. 614; E.O. 12918, 59 FR 28205, 3 CFR, 1994 Comp., p. 899; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13338, 69 FR 26751, 3 CFR, 2004 Comp., p 168; Presidential Determination 2003-23 of May 7, 2003, 68 FR 26459, May 16, 2003; Presidential Determination 2007-7 of December 7, 2006, 72 FR 1899 (January 16, 2007); Notice of May 6, 2015, 80 FR 26815 (May 8, 2015); Notice of August 7, 2015, 80 FR 48233 (August 11, 2015). 0 7. Section 746.2 is amended by revising paragraphs (a) introductory text and (a)(1)(x) and adding paragraphs (a)(2) and (b)(6) to read as follows: Sec. 746.2 Cuba. (a) License requirements. As authorized by section 6 of the Export Administration Act of 1979, as amended (EAA) and by the Trading with the Enemy Act of 1917, as amended, you will need a license to export or reexport all items subject to the EAR (see part 734 of the EAR for the scope of items subject to the EAR) to Cuba, including any release of technology or source code subject to the EAR to a Cuban national, except as follows: (1) * * * (x) Aircraft, vessels and spacecraft (AVS) for certain aircraft on temporary sojourn; equipment and spare parts for permanent use on a vessel or aircraft, and ship and plane stores; or vessels on temporary sojourn (see Sec. 740.15(a), (b), and (d) of the EAR). * * * * * (2) Deemed exports and deemed reexports. A license is not required to release technology or source code subject to the EAR but not on the Commerce Control List (i.e., EAR99 technology or source code) to a Cuban national in the United States or a third country. (b) * * * (6) License applications for exports or reexports of items to ensure safety in civil aviation, including the safe operation of commercial passenger aircraft will be considered on a case-by-case basis. * * * * * PART 772--[AMENDED] 0 8. The authority citation for 15 CFR part 772 continues to read as follows: Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; E.O. 13222, 66 FR 44025, 3 CFR, 2001 Comp., p. 783; Notice of August 7, 2015, 80 FR 48233 (August 11, 2015). 0 9. In Sec. 772.1, the definition of ``U.S. Person'' is amended by revising paragraphs (a) introductory text and (b) to read as follows. Sec. 772.1 Definitions of terms as used in the Export Administration Regulations (EAR). * * * * * U.S. Person. (a) For purposes of Sec. Sec. 740.21(e)(1), 744.6, 744.10, 744.11, 744.12, 744.13, and 744.14 of the EAR, the term U.S. person includes: * * * * * (b) See also Sec. Sec. 740.9, 740.14, and 740.21(f)(2) and parts 746 and 760 of the EAR for definitions of ``U.S. person'' that are specific to those sections and parts. * * * * * Dated: September 14, 2015. Kevin J. Wolf, Assistant Secretary for Export Administration. [FR Doc. 2015-23495 Filed 9-18-15; 8:45 am] BILLING CODE 3510-33-P
![56898 Federal Register / Vol. 80, No. 182 / Monday, September 21, 2015 / Rules and Regulations
initial or final regulatory flexibility ■ D. Under subpart G, Under Section Dated: August 17, 2015.
analysis. 5 U.S.C. 603(a), 604(a). 1026.52—Limitations on Fees, 52(b) Richard Cordray,
Limitations on Penalty Fees, 52(b)(1)(ii) Director, Bureau of Consumer Financial
C. Paperwork Reduction Act
Safe Harbors, subheading i, paragraph Protection.
In accordance with the Paperwork 2.i.C is added. [FR Doc. 2015–22987 Filed 9–18–15; 8:45 am]
Reduction Act of 1995 (44 U.S.C. 3506; The additions read as follows: BILLING CODE 4810–AM–P
5 CFR 1320), the Bureau reviewed this
final rule. No collections of information SUPPLEMENT I TO PART 1026—OFFICIAL
pursuant to the Paperwork Reduction INTERPRETATIONS DEPARTMENT OF COMMERCE
Act are contained in the final rule. * * * * *
List of Subjects in 12 CFR Part 1026 Bureau of Industry and Security
Subpart E—Special Rules for Certain Home
Advertising, Consumer protection, Mortgage Transactions
15 CFR Parts 740, 746, and 772
Credit, Credit unions, Mortgages, * * * * *
National banks, Reporting and Section 1026.32—Requirements for Certain [Docket No. 150825774–5774–01]
recordkeeping requirements, Savings Closed-End Home Mortgages
32(a) Coverage. RIN 0694–AG67
associations, Truth in lending.
Paragraph 32(a)(1)(ii).
Authority and Issuance 1. * * * Enhancing Support for the Cuban
ii. For 2016, $1,017, reflecting a .2 percent People
For the reasons set forth in the
decrease in the CPI–U from June 2014 to June
preamble, the Bureau amends AGENCY: Bureau of Industry and
2015, rounded to the nearest whole dollar.
Regulation Z, 12 CFR part 1026, as set Security, Commerce.
forth below: * * * * *
3. * * * ACTION: Final rule.
PART 1026—TRUTH IN LENDING ii. For 2016, $20,350, reflecting a .2 percent
decrease in the CPI–U from June 2014 to June
This rule amends the Export
SUMMARY:
(REGULATION Z) Administration Regulations (EAR) to
2015, rounded to the nearest whole dollar.
expand the scope of License Exception
■ 1. The authority citation for part 1026 * * * * * Support for the Cuban People (SCP) to
continues to read as follows: Section 1026.43—Minimum Standards for
Transactions Secured by a Dwelling
facilitate engagement between the U.S.
Authority: 12 U.S.C. 2601, 2603–2605, and Cuban people; the free flow of
2607, 2609, 2617, 3353, 5511, 5512, 5532, * * * * * information to, from, and among the
5581; 15 U.S.C. 1601 et seq. 43(e)(3) Limits on Points and Fees for
Cuban people; and independent
Qualified Mortgages
economic activity generated by Cuba’s
Subpart G—Special Rules Applicable * * * * * private sector. It also makes temporary
to Credit Card Accounts and Open End Paragraph 43(e)(3)(ii) sojourns of most vessels to Cuba eligible
Credit Offered to College Students 1. * * *
for License Exception Aircraft, Vessels
ii. For 2016, reflecting a .2 percent decrease
■ 2. Section 1026.52(b)(1)(ii)(B) is in the CPI–U that was reported on the and Spacecraft (AVS). Additionally, this
revised to read as follows: preceding June 1, a covered transaction is not rule creates a case-by-case review policy
a qualified mortgage unless the transactions of license applications to export and
§ 1026.52 Limitations on fees. total points and fees do not exceed; reexport to Cuba items to ensure the
* * * * * A. For a loan amount greater than or equal safety of civil aviation and safe
(b) * * * to $101,749: 3 percent of the total loan operation of commercial passenger
(1) * * * amount; aircraft. Finally, it amends the deemed
(ii) * * * B. For a loan amount greater than or equal export and deemed reexport license
to $61,050 but less than $101,749: $3,052; requirements for releases of technology
(B) $37 if the card issuer previously
C. For a loan amount greater than or equal
imposed a fee pursuant to paragraph and source code to Cuban nationals;
to $20,350 but less than $61,050: 5 percent
(b)(1)(ii)(A) of this section for a violation of the total loan amount;
removes certain unintended restrictions
of the same type that occurred during D. For a loan amount greater than or equal on exports and reexports under License
the same billing cycle or one of the next to $12,719 but less than $20,350; $1,017; Exception SCP and License Exception
six billing cycles; or E. For a loan amount less than $12,719: 8 Consumer Communications Devices
* * * * * percent of the total loan amount. (CCD); and makes certain technical
* * * * * corrections to License Exception
■ 3. In Supplement I to part 1026—
Agricultural Commodities (AGR).
Official Interpretations: Subpart G—Special Rules Applicable to
■ A. Under subpart E, Under Section Credit Card Accounts and Open-End Credit DATES : This rule is effective September
1026.32—Requirements for Certain Offered to College Students 21, 2015.
Closed-End Home Mortgages, 32(a) Section 1026.52—Limitations on Fees FOR FURTHER INFORMATION CONTACT:
Coverage, Paragraph 32(a)(1)(ii), Foreign Policy Division, Office of
* * * * *
paragraph 1.ii is added. 52(b)(1)(ii) Safe harbors
Nonproliferation and Treaty
■ B. Under subpart E, Under Section Compliance, Bureau of Industry and
* * * * * Security, Phone: (202) 482–4252.
1026.32—Requirements for Certain 2. * * *
Closed-End Home Mortgages, 32(a) i. * * * SUPPLEMENTARY INFORMATION:
Coverage, Paragraph 32(a)(1)(ii),
rmajette on DSK7SPTVN1PROD with RULES
C. Card issuers were permitted to impose Background
paragraph 3.ii is added. a fee for violating the terms of an agreement
■ C. Under subpart E, Under Section if the fee did not exceed $27 under The United States maintains a
1026.43—Minimum Standards for § 1026.52(b)(1)(ii)(A) and $38 under comprehensive embargo on trade with
Transactions Secured by a Dwelling, § 1026.52(b)(1)(ii)(B), through December 31, Cuba. Pursuant to that embargo, all
43(e) Qualified Mortgages, Paragraph 2015. items that are subject to the Export
43(e)(3)(ii), paragraph 1.ii is added. * * * * * Administration Regulations (EAR)
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![56902 Federal Register / Vol. 80, No. 182 / Monday, September 21, 2015 / Rules and Regulations
Management and Budget, by email at The additions read as follows: ■ a. Removing the third sentence from
jseehra@omb.eop.gov or by fax to (202) paragraph (b) introductory text;
395–7285 and to William Arvin at § 740.15 Aircraft, vessels and spacecraft
■ b. Revising paragraph (c)(2)
(AVS).
william.arvin@bis.doc.gov. introductory text;
3. This rule does not contain policies * * * * * ■ c. Redesignating paragraph (c)(2)(iii)
with Federalism implications as that (a) * * * and (iv) as paragraphs (c)(2)(iv) and (v),
term is defined under Executive Order Note to paragraph (a). An aircraft exported respectively;
13132. or reexported to a country pursuant to this ■ d. Adding paragraph (c)(2)(iii);
4. The provisions of the paragraph (a) may not remain in that country ■ e. Removing ‘‘, either sold or
Administrative Procedure Act (5 U.S.C. for more than seven consecutive days before donated,’’ from paragraph (d)(1); and
553) requiring notice of proposed it departs for a country to which it may be
■ f. Adding paragraphs (d)(4), (e), and
rulemaking, the opportunity for public exported without a license or the United
States. (f).
participation, and a delay in effective The revision and additions read as
date, are inapplicable because this (b) * * * follows:
regulation involves a military or foreign (4) Cuba. Only items designated as
affairs function of the United States (See EAR99 or controlled on the Commerce § 740.21 Support for the Cuban People
5 U.S.C. 553(a)(1)). This rule is a part of Control List (CCL) (Supplement No. 1 to (SCP).
a foreign policy initiative to change the part 774 of the EAR) only for anti- * * * * *
nature of the relationship between Cuba terrorism reasons (i.e., anti-terrorism (c) * * *
and the United States announced by the must be the only reason for control that (2) The temporary export or reexport
President on December 17, 2014. Delay applies to the item as set forth in the to Cuba of items by travelers to Cuba for
in implementing this rule to obtain Export Control Classification Number the travelers’ use in scientific,
public comment would undermine the (ECCN) that controls the item) are archeological, cultural, ecological,
foreign policy objectives that the rule is eligible for export or reexport to Cuba educational, historic preservation, or
intended to implement. Further, no pursuant to this paragraph (b). sporting activities, or professional
other law requires that a notice of * * * * * meetings or research. The following
proposed rulemaking and an (d) * * * requirements apply:
opportunity for public comment be (6) Cuba. Only the types of vessels * * * * *
given for this rule. Because a notice of listed in this paragraph (d)(6) departing (iii) The items must remain under the
proposed rulemaking and an for Cuba for the purposes listed in this traveler’s ‘‘effective control’’ while in
opportunity for public comment are not paragraph (d)(6) may depart for Cuba Cuba.
required to be given for this rule under pursuant to this paragraph (d). Vessels * * * * *
5 U.S.C. 553, or by any other law, the used to transport both passengers and (d) * * *
requirements of the Regulatory items to Cuba may transport (4) The export or reexport to Cuba of
Flexibility Act (5 U.S.C. 601 et seq.) are automobiles only if the export or commodities or software that will be
not applicable. reexport of the automobiles to Cuba used by individuals or private sector
have been authorized by a separate entities to develop software that will
List of Subjects
license issued by BIS (i.e., not improve the free flow of information or
15 CFR Part 740 authorized by license exception). that will support the private sector
Administrative practice and (i) Cargo vessels for hire for use in the activities described in paragraph (b) of
procedure, Exports, Reporting and transportation of items; this section.
recordkeeping requirements. (ii) Passenger vessels for hire for use The following are ineligible end-
in the transportation of passengers and/ users:
15 CFR Part 746 or items; and (i) The Cuban Government or the
Exports, Reporting and recordkeeping (iii) Recreational vessels that are used Cuban Communist Party and
requirements. in connection with travel authorized by organizations they administer or
the Department of the Treasury, Office control;
15 CFR Part 772 of Foreign Assets Control (OFAC). (ii) Ministers and vice-ministers;
Exports. Note to paragraph (d). A vessel exported members of the Council of State;
For the reasons set forth in the or reexported to a country pursuant to this members of the Council of Ministers;
preamble, the Export Administration paragraph (d) may not remain in that country members and employees of the National
Regulations (15 CFR parts 730 through for more than 14 consecutive days before it
Assembly of People’s Power; members
774) are amended as follows: departs for a country to which it may be
exported without a license or the United of any provincial assembly; local sector
States. chiefs of the Committees for the Defense
PART 740—[AMENDED] of the Revolution; Director Generals and
■ 1. The authority citation for 15 CFR * * * * * sub-Director Generals and higher of all
part 740 continues to read as follows: Cuban ministries and state agencies;
§ 740.18—[Amended]
employees of the Ministry of the Interior
Authority: 50 U.S.C. app. 2401 et seq.; 50 ■ 3. Section 740.18 is amended by (MININT); employees of the Ministry of
U.S.C. 1701 et seq.; 22 U.S.C. 7201 et seq.; removing the number ‘‘10%’’ wherever
E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., Defense (MINFAR); secretaries and first
p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001
it appears in paragraph (b)(3) and secretaries of the Confederation of Labor
adding in its place the number ‘‘25%’’. of Cuba (CTC) and its component
rmajette on DSK7SPTVN1PROD with RULES
Comp., p. 783; Notice of August 7, 2015, 80
FR 48233 (August 11, 2015). § 740.19—[Amended]
unions; chief editors, editors and deputy
■ 2. Section 740.15 is amended by editors of Cuban state-run media
adding: ■ 4. Section 740.19 is amended by organizations and programs, including
■ a. A note to paragraph (a); removing ‘‘, either sold or donated,’’ newspapers, television, and radio; or
■ b. Paragraphs (b)(4) and (d)(6); and from paragraph (a). members and employees of the Supreme
■ c. A note to paragraph (d). ■ 5. Section 740.21 is amended by: Court (Tribuno Supremo Nacional); and
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![56904 Federal Register / Vol. 80, No. 182 / Monday, September 21, 2015 / Rules and Regulations
and other business activities that PART 746—[AMENDED] 3 CFR, 2001 Comp., p. 783; Notice of August
involve the transmission and use of the 7, 2015, 80 FR 48233 (August 11, 2015).
technology authorized under this ■ 6. The authority citation for 15 CFR ■ 9. In § 772.1, the definition of ‘‘U.S.
license exception; part 746 continues to read as follows: Person’’ is amended by revising
(ii) Use of password systems on Authority: 50 U.S.C. app. 2401 et seq.; 50 paragraphs (a) introductory text and (b)
electronic devices that will store the U.S.C. 1701 et seq.; 22 U.S.C. 287c; Sec 1503, to read as follows.
technology authorized under this Pub. L. 108–11, 117 Stat. 559; 22 U.S.C. 6004;
22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. § 772.1 Definitions of terms as used in the
license exception; and 12854, 58 FR 36587, 3 CFR, 1993 Comp., p. Export Administration Regulations (EAR).
(iii) Use of personal firewalls on 614; E.O. 12918, 59 FR 28205, 3 CFR, 1994 * * * * *
electronic devices that will store the Comp., p. 899; E.O. 13222, 66 FR 44025, 3
CFR, 2001 Comp., p. 783; E.O. 13338, 69 FR
U.S. Person. (a) For purposes of
technology authorized under this §§ 740.21(e)(1), 744.6, 744.10, 744.11,
license exception. 26751, 3 CFR, 2004 Comp., p 168;
Presidential Determination 2003–23 of May 744.12, 744.13, and 744.14 of the EAR,
(3) Kits of replacement ‘‘parts’’ or 7, 2003, 68 FR 26459, May 16, 2003; the term U.S. person includes:
‘‘components.’’ Kits consisting of Presidential Determination 2007–7 of * * * * *
replacement ‘‘parts’’ or ‘‘components’’ December 7, 2006, 72 FR 1899 (January 16, (b) See also §§ 740.9, 740.14, and
for items that have been exported or 2007); Notice of May 6, 2015, 80 FR 26815
740.21(f)(2) and parts 746 and 760 of the
reexported to Cuba under a license or (May 8, 2015); Notice of August 7, 2015, 80
FR 48233 (August 11, 2015). EAR for definitions of ‘‘U.S. person’’
license exception, or foreign-origin that are specific to those sections and
items that are not subject to the EAR ■ 7. Section 746.2 is amended by parts.
that are owned and used exclusively by revising paragraphs (a) introductory text
* * * * *
private sector entities in Cuba, may be and (a)(1)(x) and adding paragraphs
exported or reexported under this (a)(2) and (b)(6) to read as follows: Dated: September 14, 2015.
paragraph (f)(3) provided: Kevin J. Wolf,
§ 746.2 Cuba.
(i) The kits remain under ‘‘effective Assistant Secretary for Export
(a) License requirements. As Administration.
control’’ of the exporter or reexporter or authorized by section 6 of the Export
its employees; and [FR Doc. 2015–23495 Filed 9–18–15; 8:45 am]
Administration Act of 1979, as amended BILLING CODE 3510–33–P
(ii) All parts and components in the (EAA) and by the Trading with the
kit are returned, except that one-for-one Enemy Act of 1917, as amended, you
replacements may be made in will need a license to export or reexport
accordance with the requirements of all items subject to the EAR (see part DEPARTMENT OF THE TREASURY
License Exception Servicing and 734 of the EAR for the scope of items
Replacement of Parts and Equipment subject to the EAR) to Cuba, including Internal Revenue Service
(RPL) and the defective parts and any release of technology or source code
components returned (see Parts, subject to the EAR to a Cuban national, 26 CFR Part 1
Components, Accessories and except as follows:
Attachments in § 740.10(a)). (1) * * * [TD 9739]
(4) Exhibition and demonstration. (x) Aircraft, vessels and spacecraft
RIN 1545–BF51; 1545–BM78
Commodities or software for exhibition (AVS) for certain aircraft on temporary
or demonstration at trade shows, or to sojourn; equipment and spare parts for Reorganizations Under Section
any entity that would be eligible to permanent use on a vessel or aircraft, 368(a)(1)(F); Section 367(a) and Certain
receive the commodities or software and ship and plane stores; or vessels on Reorganizations Under Section
under paragraphs (a) through (e) of this temporary sojourn (see § 740.15(a), (b), 368(a)(1)(F)
section, may be exported or reexported and (d) of the EAR).
under this paragraph * * * * * AGENCY: Internal Revenue Service (IRS),
(2) Deemed exports and deemed Treasury.
(f). The commodities or software must
reexports. A license is not required to ACTION: Final regulations and removal of
remain under the ‘‘effective control’’ of
release technology or source code temporary regulations.
the exporter or reexporter or its private
subject to the EAR but not on the
sector agent, may not be exhibited or SUMMARY: This document contains final
Commerce Control List (i.e., EAR99
demonstrated at any one location for regulations that provide guidance
technology or source code) to a Cuban
more than 30 days and may not be used regarding the qualification of a
national in the United States or a third
for more than the minimum extent transaction as a corporate reorganization
country.
required for effective exhibition or (b) * * * under section 368(a)(1)(F) by virtue of
demonstration. (6) License applications for exports or being a mere change of identity, form,
(5) Containers. Containers that would reexports of items to ensure safety in or place of organization of one
require a license for export or reexport civil aviation, including the safe corporation (F reorganization). This
to Cuba but that are necessary for operation of commercial passenger document also contains final regulations
shipment of commodities being aircraft will be considered on a case-by- relating to F reorganizations in which
exported to Cuba under a license or case basis. the transferor corporation is a domestic
license exception may be exported or * * * * * corporation and the acquiring
reexported to Cuba. However, this corporation is a foreign corporation (an
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paragraph (f) does not authorize the PART 772—[AMENDED] outbound F reorganization). These
export of the container’s contents, regulations will affect corporations
which, if not exempt from licensing, ■ 8. The authority citation for 15 CFR engaging in transactions that could
must be separately authorized for export part 772 continues to read as follows: qualify as F reorganizations (including
or reexport under either a license or a Authority: 50 U.S.C. app. 2401 et seq.; 50 outbound F reorganizations) and their
license exception. U.S.C. 1701 et seq.; E.O. 13222, 66 FR 44025, shareholders.
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Document Created: 2015-12-15 09:38:29
Document Modified: 2015-12-15 09:38:29
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule. | |
| Dates | This rule is effective September 21, 2015. | |
| Contact | Foreign Policy Division, Office of Nonproliferation and Treaty Compliance, Bureau of Industry and Security, Phone: (202) 482-4252. | |
| FR Citation | 80 FR 56898 | |
| RIN Number | 0694-AG67 | |
| CFR Citation | 15
CFR
740 15 CFR 746 15 CFR 772 | |
| CFR Associated | Administrative Practice and Procedure; Exports and Reporting and Recordkeeping Requirements |
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