81 FR 4580 - Cuba Licensing Policy Revisions
DEPARTMENT OF COMMERCE
Bureau of Industry and Security Federal Register Volume 81, Issue 17 (January 27, 2016)
Bureau of Industry and Security
Federal Register Volume 81, Issue 17 (January 27, 2016)
| Page Range | 4580-4583 | |
| FR Document | 2016-01557 |
[Federal Register Volume 81, Number 17 (Wednesday, January 27, 2016)] [Rules and Regulations] [Pages 4580-4583] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-01557] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF COMMERCE Bureau of Industry and Security 15 CFR Part 746 [Docket No. 151208999-5999-01] RIN 0694-AG79 Cuba Licensing Policy Revisions AGENCY: Bureau of Industry and Security, Commerce. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: This rule amends the exceptions to the general policy of denial in the Export Administration Regulations (EAR) for exports and reexports to Cuba by identifying additional types of exports and reexports that are subject to a general policy of approval: items for safety of civil aviation and safe operation of commercial aircraft engaged in international air transportation, certain telecommunications and agricultural items, items to human rights organizations or individuals and non-governmental organizations that promote independent activity intended to strengthen civil society in Cuba, and items for use by U.S. news bureaus. This rule also amends the exceptions to the general policy of denial in the EAR for exports and reexports to Cuba by identifying types of exports and reexports that will be reviewed to determine, on a case-by-case basis, whether such transactions meet the needs of the Cuban people, including exports and reexports for this purpose made to state-owned enterprises and agencies and organizations of the Cuban government that provide goods and services to the Cuban people. BIS is making these changes to further implement the Administration's policy [[Page 4581]] of empowering and engaging the Cuban people. This rule retains the prohibition on the export or reexport of items subject to the EAR to Cuba without a license or applicable license exception. DATES: This rule is effective January 27, 2016. 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 On December 17, 2014, the President announced a historic new approach in U.S. policy toward Cuba. This approach recognized that increased commerce benefits the American and Cuban people, and sought to make the lives of ordinary Cubans easier and more prosperous. On January 16, 2015, the Bureau of Industry and Security (BIS) amended the Export Administration Regulations (EAR) to create License Exception Support for the Cuban People (SCP), which authorizes the export and reexport, without a license, of certain items to, among other objectives, improve the living conditions of the Cuban people (see 80 FR 2286). That rule also established a licensing policy of case-by-case review of license applications for the export and reexport to Cuba of telecommunications items to contribute to the ability of the Cuban people to communicate with one another and with people in the United States and the rest of the world. On July 22, 2015, BIS published a rule implementing the May 29, 2015, rescission of Cuba's designation as a state sponsor of terrorism (see 80 FR 43314). That rule expanded certain license exception availability for exports and reexports to Cuba, including making general aviation aircraft eligible for temporary sojourns to Cuba. On September 21, 2015, BIS published a rule to enhance support for the Cuban people (see 80 FR 56898). This rule expanded the scope of transactions that are eligible for License Exception SCP and made certain vessels on temporary sojourn to Cuba eligible for a license exception. To further engage and empower the Cuban people, this rule amends the licensing policy in Sec. 746.2 of the EAR to add a general policy of approval for certain exports and reexports previously subject to case-by case review and a policy of case-by-case review for exports and reexports of items not eligible for License Exception SCP to meet the needs of the Cuban people, including exports and reexports for this purpose made to state-owned enterprises and agencies and organizations of the Cuban government that provide goods and services to the Cuban people. BIS is taking this action in coordination with the Department of the Treasury, Office of Foreign Assets Control, which is amending the Cuban Assets Control Regulations (31 CFR part 515). The specific terms and limitations of this policy are more fully discussed below. Specific Changes Made by This Rule This rule revises the licensing policy from possible approval on a case-by-case basis to a general policy of approval for exports and reexports of:Telecommunications items that would improve communications to, from, and among the Cuban people; Certain commodities and software to human rights organizations or to individuals and non-governmental organizations that promote independent activity intended to strengthen civil society in Cuba; Commodities and software to U.S. news bureaus in Cuba whose primary purpose is the gathering and dissemination of news to the general public; and Agricultural items that are outside the scope of ``agricultural commodities'' as defined in part 772 of the EAR (such as insecticides, pesticides and herbicides) as well as agricultural commodities not eligible for License Exception Agricultural commodities (AGR) (such as those that are specified in an entry on the Commerce Control List, i.e., are not designated EAR99). Items that are necessary to ensure the safety of civil aviation and the safe operation of commercial aircraft engaged in international air transportation, including the export or reexport of such aircraft leased to state-owned enterprises. Given a substantial increase in air travel to and from Cuba, BIS is making the change to emphasize the importance of civil aviation safety and to recognize that access to aircraft used in international air transportation that meet U.S. Federal Aviation Administration and European Aviation Safety Agency operating standards by Cuban state-owned enterprises contributes to that safety. These revisions are consistent with long-standing licensing practice for such exports and reexports. This rule also amends the exceptions to the general policy of denial by adopting a case-by-case review policy for exports and reexports of certain items to meet the needs of the Cuban people, including exports and reexports to state-owned enterprises, agencies, and other organizations of the Cuban government that provide goods and services for the use and benefit of the Cuban people. This case-by-case review policy includes exports and reexports of items for agricultural production, artistic endeavors (including the creation of public content, historic and cultural works and preservation), education, food processing, disaster preparedness, relief and response, public health and sanitation, residential construction and renovation and public transportation. The policy also includes exports and reexports of items for use in construction of: facilities for treating public water supplies, facilities for supplying electricity or other energy to the Cuban people, sports and recreation facilities, and other infrastructure that directly benefits the Cuban people. Additionally, it includes exports and reexports to wholesalers and retailers of items for domestic consumption by the Cuban people. BIS is implementing this policy to further facilitate exports and reexports to meet the needs of the Cuban people. This licensing policy is consistent with long-standing policy to support the Cuban people. Accordingly, BIS will continue to apply a general policy of denial for applications to export or reexport items for use by state-owned enterprises, agencies, or other organizations of the Cuban government that primarily generate revenue for the state, including those engaged in tourism and those engaged in the extraction or production of minerals or other raw materials. Additionally, applications to export or reexport items destined to the Cuban military, police, intelligence and security services remain subject to a general policy of denial. Licenses issued under this case-by-case review licensing policy generally will have a condition prohibiting both reexports from Cuba to any other destination and uses that enable or facilitate the export of goods or services from Cuba to third countries. BIS anticipates these revisions will significantly benefit the Cuban people, while not significantly increasing overall exports to Cuba's state-run economy. This rule also adds the term ``reexport'' to the existing statement of a policy of case-by-case review of applications for aircraft or vessels on temporary sojourn to Cuba. The change reflects BIS's practice of generally applying the same licensing policy to exports and reexports of a given item. Finally, this rule consolidates the statements of licensing policy for exports and reexports to Cuba. Prior to this rule, the policies were described in six paragraphs and like policies existed [[Page 4582]] in several non-adjacent paragraphs with slightly different wording. Under this rule, the policies will be stated in three paragraphs based upon licensing policy. One paragraph applies to medicine and medical devices, which are subject to certain statutorily mandated policies. This rule makes no changes to the text of that paragraph. A second paragraph describes transactions that are subject to a general policy of approval, including transactions for which the general policy of approval predates this rule. A third paragraph describes transactions that may be authorized on a case-by-case basis, including transactions for which the policy of case-by-case review predates this rule. Additionally, the rule adopts uniform terminology to describe case-by- case review of license applications and removes some superfluous text. All of the changes described in this paragraph are intended to improve clarity and readability of the EAR, and none of them are substantive changes to licensing policy. 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 Office of Management and Budget (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 carries an annual estimated burden of 31,833 hours. BIS believes that this rule will have no material impact on that burden. To the extent that it has any impact, BIS believes that the benefits of this rule justify any additional burden it creates. This rule does not impose any new license requirements, it creates less restrictive licensing policies (i.e., the policies under which the decision to approve or deny a license application is made) for exports and reexports to Cuba. These less restrictive policies might increase the number of license applications submitted to BIS because applicants might be more optimistic about obtaining approval. However, the benefit to license applicants in the form of greater likelihood of approval justifies any additional burden. 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 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 and 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 in 15 CFR Part 746 Exports, Reporting and recordkeeping requirements. For the reasons set forth in the preamble, 15 CFR Chapter VII, Subchapter C is amended as follows: PART 746--[AMENDED] 0 1. 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 2. Section 746.2 is amended by revising paragraphs (b)(2) and (b)(3) and removing paragraphs (b)(4), (b)(5) and (b)(6) to read as follows: Sec. 746.2 Cuba. * * * * * (b) * * * (2) Exports and reexports that generally will be approved. Applications for licenses to export or reexport the following generally will be approved: (i) Telecommunications items that would improve communications to, from, and among the Cuban people; (ii) Commodities and software to human rights organizations or to individuals and non-governmental organizations that promote independent activity intended to strengthen civil society in Cuba; (iii) Commodities and software to U.S. news bureaus in Cuba whose primary purpose is the gathering and dissemination of news to the general public; (iv) Agricultural items that are outside the scope of agricultural commodities as defined in part 772 of the EAR, such as insecticides, pesticides and herbicides, and agricultural commodities not eligible for License Exception AGR; [[Page 4583]] (v) Items necessary to ensure the safety of civil aviation and the safe operation of commercial aircraft engaged in international air transportation, including the export or reexport of such aircraft leased to state-owned enterprises; and (vi) Items necessary for the environmental protection of U.S. and international air quality, waters, or coastlines (including items related to renewable energy or energy efficiency). (3) Exports and reexports that may be authorized on a case-by-case basis. (i) Applications for licenses to export or reexport items to meet the needs of the Cuban people, including exports and reexports of such items to state-owned enterprises, agencies, and other organizations of the Cuban government that provide goods and services for the use and benefit of the Cuban people may be authorized on a case-by-case basis. This policy of case-by-case review includes applications for licenses to export or reexport items for: (A) Agricultural production, artistic endeavors (including the creation of public content, historic and cultural works and preservation), education, food processing, disaster preparedness, relief and response, public health and sanitation, residential construction and renovation and public transportation; (B) Wholesale and retail distribution for domestic consumption by the Cuban people; and (C) Construction of facilities for treating public water supplies, facilities for supplying electricity or other energy to the Cuban people, sports and recreation facilities, and other infrastructure that directly benefits the Cuban people. Note 1 to paragraph (b)(3)(i): Licenses issued pursuant to the policy set forth in this paragraph generally will have a condition prohibiting both reexports from Cuba to any other destination and uses that enable or facilitate the export of goods or services from Cuba to third countries. Note 2 to paragraph (b)(3)(i): The policy of case-by-case review in this paragraph is intended to facilitate exports and reexports to meet the needs of the Cuban people. Accordingly, BIS generally will deny applications to export or reexport items for use by state-owned enterprises, agencies, and other organizations that primarily generate revenue for the state, including those engaged in tourism and those engaged in the extraction or production of minerals or other raw materials. Applications for export or reexport of items destined to the Cuban military, police, intelligence or security services also generally will be denied. (ii) Applications for exports or reexports of aircraft or vessels on temporary sojourn to Cuba either to deliver humanitarian goods or services, or consistent with the foreign policy interests of the United States, may be authorized on a case-by-case basis. * * * * * Dated: January 21, 2016. Penny Pritzker, Secretary of Commerce. [FR Doc. 2016-01557 Filed 1-26-16; 8:45 am] BILLING CODE 3510-33-P
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with electronic flight controls that affect Applicability 2. For all other components of the
maneuvering. As discussed above, these special side-stick control assembly, but
conditions are applicable to the Model excluding the internal components of
Type Certification Basis
Falcon 5X airplane. Should Dassault the electrical sensor assemblies, to avoid
Under the provisions of 14 CFR 21.17, Aviation apply at a later date for a damage to the control system as the
Dassault Aviation must show that the change to the type certificate to include result of an in-flight jam:
Model Falcon 5X airplane meets the another model incorporating the same
applicable provisions of part 25, as Pitch Roll
novel or unusual design feature, these
amended by Amendments 25–1 through special conditions would apply to that Nose up, 125 lbf ....... Nose left, 50 lbf.
25–136. model as well. Nose down, 125 lbf ... Nose right, 50 lbf.
If the Administrator finds that the
applicable airworthiness regulations Conclusion
This action affects only certain novel Issued in Renton, Washington, on January
(i.e., 14 CFR part 25) do not contain 20, 2016.
adequate or appropriate safety standards or unusual design features on one model
of airplane. It is not a rule of general Michael Kaszycki,
for the Model Falcon 5X airplane
because of a novel or unusual design applicability. Acting Manager, Transport Airplane
The substance of these special Directorate, Aircraft Certification Service.
feature, special conditions are
conditions has been subjected to the [FR Doc. 2016–01581 Filed 1–26–16; 8:45 am]
prescribed under the provisions of
§ 21.16. notice and comment period in several BILLING CODE 4910–13–P
Special conditions are initially prior instances and has been derived
applicable to the model for which they without substantive change from those
are issued. Should the type certificate previously issued. It is unlikely that DEPARTMENT OF COMMERCE
for that model be amended later to prior public comment would result in a
significant change from the substance Bureau of Industry and Security
include any other model that
incorporates the same novel or unusual contained herein. Therefore, because a
delay would significantly affect the 15 CFR Part 746
design feature, these special conditions
would also apply to the other model certification of the airplane, which is [Docket No. 151208999–5999–01]
under § 21.101. imminent, the FAA has determined that
prior public notice and comment are RIN 0694–AG79
In addition to the applicable
unnecessary and impracticable, and
airworthiness regulations and special Cuba Licensing Policy Revisions
good cause exists for adopting these
conditions, the Model Falcon 5X
special conditions upon publication in AGENCY: Bureau of Industry and
airplane must comply with the fuel-vent
the Federal Register. The FAA is Security, Commerce.
and exhaust-emission requirements of
requesting comments to allow interested ACTION: Final rule.
14 CFR part 34, and the noise-
persons to submit views that may not
certification requirements of 14 CFR
have been submitted in response to the SUMMARY: This rule amends the
part 36.
prior opportunities for comment exceptions to the general policy of
The FAA issues special conditions, as described above. denial in the Export Administration
defined in 14 CFR 11.19, in accordance Regulations (EAR) for exports and
with § 11.38, and they become part of List of Subjects in 14 CFR Part 25
reexports to Cuba by identifying
the type certification basis under Aircraft, Aviation safety, Reporting additional types of exports and
§ 21.17(a)(2). and recordkeeping requirements. reexports that are subject to a general
Novel or Unusual Design Features The authority citation for these policy of approval: items for safety of
special conditions is as follows: civil aviation and safe operation of
The Model Falcon 5X airplane will commercial aircraft engaged in
incorporate the following novel or Authority: 49 U.S.C. 106(g), 40113, 44701,
44702, 44704. international air transportation, certain
unusual design feature: telecommunications and agricultural
This airplane is equipped with an The Special Conditions items, items to human rights
electronic flight-control system that Accordingly, pursuant to the organizations or individuals and non-
includes pilot controls through a side authority delegated to me by the governmental organizations that
stick instead of through a conventional Administrator, the following special promote independent activity intended
control stick. conditions are issued, in lieu of to strengthen civil society in Cuba, and
Discussion § 25.397(c), as part of the type- items for use by U.S. news bureaus. This
certification basis for the Dassault rule also amends the exceptions to the
The Dassault Falcon 5X airplane is Aviation Model Falcon 5X airplane. general policy of denial in the EAR for
equipped with a side stick instead of a For Model Falcon 5X airplanes exports and reexports to Cuba by
conventional control stick. The equipped with side-stick controls identifying types of exports and
requirement of § 25.397(c), which designed for forces to be applied by one reexports that will be reviewed to
defines limit pilot forces and torques, wrist and not arms, the limit pilot forces determine, on a case-by-case basis,
applies to conventional wheel or stick are as follows. whether such transactions meet the
asabaliauskas on DSK5VPTVN1PROD with RULES
control and is therefore not adequate for 1. For all components between and needs of the Cuban people, including
this new side-stick design. including the side-stick control- exports and reexports for this purpose
These special conditions contain the assembly handle and its control stops: made to state-owned enterprises and
additional safety standards that the agencies and organizations of the Cuban
Administrator considers necessary to Pitch Roll government that provide goods and
establish a level of safety equivalent to services to the Cuban people. BIS is
Nose up, 200 lbf ....... Nose left, 100 lbf.
that established by the existing Nose down, 200 lbf ... Nose right, 100 lbf.
making these changes to further
airworthiness standards. implement the Administration’s policy
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in several non-adjacent paragraphs with 2. Notwithstanding any other proposed rulemaking and an
slightly different wording. Under this provision of law, no person is required opportunity for public comment be
rule, the policies will be stated in three to respond to, nor shall any person be given for this rule. Because a notice of
paragraphs based upon licensing policy. subject to a penalty for failure to comply proposed rulemaking and an
One paragraph applies to medicine and with, a collection of information subject opportunity for public comment are not
medical devices, which are subject to to the requirements of the Paperwork required to be given for this rule under
certain statutorily mandated policies. Reduction Act of 1995 (44 U.S.C. 3501 5 U.S.C. 553, or by any other law, the
This rule makes no changes to the text et seq.) (PRA), unless that collection of requirements of the Regulatory
of that paragraph. A second paragraph information displays a currently valid Flexibility Act (5 U.S.C. 601 et seq.) are
describes transactions that are subject to Office of Management and Budget not applicable.
a general policy of approval, including (OMB) control number. This rule
transactions for which the general involves a collection of information List of Subjects in 15 CFR Part 746
policy of approval predates this rule. A approved under OMB control number Exports, Reporting and recordkeeping
third paragraph describes transactions 0694–0088—Simplified Network requirements.
that may be authorized on a case-by- Application Processing+ System For the reasons set forth in the
case basis, including transactions for (SNAP+) and the Multipurpose Export preamble, 15 CFR Chapter VII,
which the policy of case-by-case review License Application, which carries an Subchapter C is amended as follows:
predates this rule. Additionally, the rule annual estimated burden of 31,833
adopts uniform terminology to describe hours. BIS believes that this rule will PART 746—[AMENDED]
case-by-case review of license have no material impact on that burden.
applications and removes some To the extent that it has any impact, BIS ■ 1. The authority citation for 15 CFR
superfluous text. All of the changes believes that the benefits of this rule part 746 continues to read as follows:
described in this paragraph are intended justify any additional burden it creates. Authority: 50 U.S.C. app. 2401 et seq.; 50
to improve clarity and readability of the This rule does not impose any new U.S.C. 1701 et seq.; 22 U.S.C. 287c; Sec 1503,
EAR, and none of them are substantive license requirements, it creates less Pub. L. 108–11, 117 Stat. 559; 22 U.S.C. 6004;
changes to licensing policy. restrictive licensing policies (i.e., the 22 U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O.
policies under which the decision to 12854, 58 FR 36587, 3 CFR, 1993 Comp., p.
Export Administration Act 614; E.O. 12918, 59 FR 28205, 3 CFR, 1994
approve or deny a license application is
Although the Export Administration Comp., p. 899; E.O. 13222, 66 FR 44025, 3
made) for exports and reexports to Cuba. CFR, 2001 Comp., p. 783; E.O. 13338, 69 FR
Act expired on August 20, 2001, the These less restrictive policies might 26751, 3 CFR, 2004 Comp., p 168;
President, through Executive Order increase the number of license Presidential Determination 2003–23 of May
13222 of August 17, 2001, 3 CFR, 2001 applications submitted to BIS because 7, 2003, 68 FR 26459, May 16, 2003;
Comp., p. 783 (2002), as amended by applicants might be more optimistic Presidential Determination 2007–7 of
Executive Order 13637 of March 8, about obtaining approval. However, the December 7, 2006, 72 FR 1899 (January 16,
2013, 78 FR 16129 (March 13, 2013), benefit to license applicants in the form 2007); Notice of May 6, 2015, 80 FR 26815
and as extended by the Notice of August of greater likelihood of approval justifies (May 8, 2015); Notice of August 7, 2015, 80
7, 2015, 80 FR 48233 (August 11, 2015), any additional burden. Send comments FR 48233 (August 11, 2015).
has continued the Export regarding this burden estimate or any ■ 2. Section 746.2 is amended by
Administration Regulations in effect other aspect of this collection of revising paragraphs (b)(2) and (b)(3) and
under the International Emergency information, including suggestions for removing paragraphs (b)(4), (b)(5) and
Economic Powers Act. BIS continues to reducing the burden, to Jasmeet K. (b)(6) to read as follows:
carry out the provisions of the Export Seehra, Office of Management and
Administration Act, as appropriate and Budget, by email at jseehra@ § 746.2 Cuba.
to the extent permitted by law, pursuant omb.eop.gov or by fax to (202) 395–7285 * * * * *
to Executive Order 13222 as amended and to William Arvin at william.arvin@ (b) * * *
by Executive Order 13637. bis.doc.gov. (2) Exports and reexports that
3. This rule does not contain policies generally will be approved. Applications
Rulemaking Requirements
with Federalism implications as that for licenses to export or reexport the
1. Executive Orders 13563 and 12866 term is defined under Executive Order following generally will be approved:
direct agencies to assess all costs and 13132. (i) Telecommunications items that
benefits of available regulatory 4. The provisions of the would improve communications to,
alternatives and, if regulation is Administrative Procedure Act (5 U.S.C. from, and among the Cuban people;
necessary, to select regulatory 553) requiring notice of proposed (ii) Commodities and software to
approaches that maximize net benefits rulemaking and the opportunity for human rights organizations or to
(including potential economic, public participation, and a delay in individuals and non-governmental
environmental, public health and safety effective date, are inapplicable because organizations that promote independent
effects, distributive impacts, and this regulation involves a military or activity intended to strengthen civil
equity). Executive Order 13563 foreign affairs function of the United society in Cuba;
emphasizes the importance of States (see 5 U.S.C. 553(a)(1)). This rule (iii) Commodities and software to U.S.
quantifying both costs and benefits, of is a part of a foreign policy initiative to news bureaus in Cuba whose primary
reducing costs, of harmonizing rules, change the nature of the relationship purpose is the gathering and
asabaliauskas on DSK5VPTVN1PROD with RULES
and of promoting flexibility. This rule between Cuba and the United States dissemination of news to the general
has been designated a ‘‘significant announced by the President on public;
regulatory action,’’ although not December 17, 2014. Delay in (iv) Agricultural items that are outside
economically significant, under section implementing this rule to obtain public the scope of agricultural commodities as
3(f) of Executive Order 12866. comment would undermine the foreign defined in part 772 of the EAR, such as
Accordingly, the rule has been reviewed policy objectives that the rule is insecticides, pesticides and herbicides,
by the Office of Management and intended to implement. Further, no and agricultural commodities not
Budget (OMB). other law requires that a notice of eligible for License Exception AGR;
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(v) Items necessary to ensure the deliver humanitarian goods or services, Electronic and Facsimile Availability
safety of civil aviation and the safe or consistent with the foreign policy This document and additional
operation of commercial aircraft interests of the United States, may be information concerning OFAC are
engaged in international air authorized on a case-by-case basis. available from OFAC’s Web site
transportation, including the export or * * * * * (www.treasury.gov/ofac). Certain general
reexport of such aircraft leased to state- information pertaining to OFAC’s
Dated: January 21, 2016.
owned enterprises; and sanctions programs also is available via
(vi) Items necessary for the Penny Pritzker,
Secretary of Commerce. facsimile through a 24-hour fax-on-
environmental protection of U.S. and demand service, tel.: 202–622–0077.
international air quality, waters, or [FR Doc. 2016–01557 Filed 1–26–16; 8:45 am]
coastlines (including items related to BILLING CODE 3510–33–P Background
renewable energy or energy efficiency). The Department of the Treasury
(3) Exports and reexports that may be issued the Cuban Assets Control
authorized on a case-by-case basis. (i) Regulations, 31 CFR part 515 (the
Applications for licenses to export or DEPARTMENT OF THE TREASURY
‘‘Regulations’’), on July 8, 1963, under
reexport items to meet the needs of the the Trading With the Enemy Act (50
Cuban people, including exports and Office of Foreign Assets Control
U.S.C. App. 5 et seq.). OFAC has
reexports of such items to state-owned amended the Regulations on numerous
enterprises, agencies, and other 31 CFR Part 515
occasions.
organizations of the Cuban government Most recently, on January 16 and
Cuban Assets Control Regulations
that provide goods and services for the September 21, 2015, OFAC amended the
use and benefit of the Cuban people AGENCY: Office of Foreign Assets Regulations, in coordinated actions with
may be authorized on a case-by-case Control, Treasury. the Department of Commerce, to
basis. This policy of case-by-case review implement certain policy measures
ACTION: Final rule.
includes applications for licenses to announced by the President on
export or reexport items for: SUMMARY: The Department of the December 17, 2014 to further engage
(A) Agricultural production, artistic Treasury’s Office of Foreign Assets and empower the Cuban people. Today,
endeavors (including the creation of Control (OFAC) is amending the Cuban OFAC and the Department of Commerce
public content, historic and cultural Assets Control Regulations to further are taking additional coordinated
works and preservation), education, implement elements of the policy actions in support of the President’s
food processing, disaster preparedness, announced by the President on Cuba policy.
relief and response, public health and December 17, 2014 to engage and The Department of Commerce is
sanitation, residential construction and empower the Cuban people. These amending the exceptions to the general
renovation and public transportation; amendments remove certain payment policy of denial in the Export
(B) Wholesale and retail distribution and financing restrictions for authorized Administration Regulations (EAR) for
for domestic consumption by the Cuban exports and reexports to Cuba of items exports and reexports to Cuba by
people; and other than agricultural items or identifying additional types of exports
(C) Construction of facilities for commodities and further facilitate travel and reexports that are subject to a
treating public water supplies, facilities to Cuba for authorized purposes by general policy of approval, including
for supplying electricity or other energy allowing blocked space, code-sharing, items for safety of civil aviation and safe
to the Cuban people, sports and and leasing arrangements with Cuban operation of commercial aircraft
recreation facilities, and other airlines and authorizing additional engaged in international air
infrastructure that directly benefits the travel-related and other transactions transportation. Commerce is also
Cuban people. directly incident to the temporary amending the exception to the general
Note 1 to paragraph (b)(3)(i): Licenses sojourn of aircraft and vessels. These policy of denial in the EAR for exports
issued pursuant to the policy set forth in this amendments also authorize additional and reexports to Cuba by identifying
paragraph generally will have a condition transactions related to professional types of exports and reexports that will
prohibiting both reexports from Cuba to any
meetings and other events, disaster be reviewed to determine, on a case-by-
other destination and uses that enable or
facilitate the export of goods or services from preparedness and response projects, and case basis, whether such transactions
Cuba to third countries. information and informational meet the needs of the Cuban People.
materials, including transactions OFAC is making additional
Note 2 to paragraph (b)(3)(i): The policy of incident to professional media or artistic amendments to the Regulations with
case-by-case review in this paragraph is productions in Cuba. respect to non-agricultural export trade
intended to facilitate exports and reexports to financing and travel and related
meet the needs of the Cuban people. DATES: Effective: January 27, 2016.
services, as set forth below.
Accordingly, BIS generally will deny FOR FURTHER INFORMATION CONTACT: The
applications to export or reexport items for Department of the Treasury’s Office of Non-Agricultural Export Trade
use by state-owned enterprises, agencies, and Foreign Assets Control: Assistant Financing
other organizations that primarily generate Director for Licensing, tel.: 202–622–
revenue for the state, including those OFAC is amending section 515.533(a)
engaged in tourism and those engaged in the
2480, Assistant Director for Regulatory to remove the former limitations on
asabaliauskas on DSK5VPTVN1PROD with RULES
extraction or production of minerals or other Affairs, tel.: 202–622–4855, Assistant payment and financing terms for all
raw materials. Applications for export or Director for Sanctions Compliance & exports from the United States or
reexport of items destined to the Cuban Evaluation, tel.: 202–622–2490; or the reexports of 100 percent U.S.-origin
military, police, intelligence or security Department of the Treasury’s Office of items from a third country that are
services also generally will be denied. the Chief Counsel (Foreign Assets licensed or otherwise authorized by the
(ii) Applications for exports or Control), Office of the General Counsel, Department of Commerce, other than
reexports of aircraft or vessels on tel.: 202–622–2410. exports of agricultural items or
temporary sojourn to Cuba either to SUPPLEMENTARY INFORMATION: commodities. As required by the Trade
VerDate Sep<11>2014 16:58 Jan 26, 2016 Jkt 238001 PO 00000 Frm 00011 Fmt 4700 Sfmt 4700 E:\FR\FM\27JAR1.SGM 27JAR1](https://thefederalregister.org/doc/81_FR_4597/page/4.svg)
Document Created: 2018-02-02 12:40:01
Document Modified: 2018-02-02 12:40:01
| 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 January 27, 2016. | |
| Contact | Foreign Policy Division, Office of Nonproliferation and Treaty Compliance, Bureau of Industry and Security, Phone: (202) 482-4252. | |
| FR Citation | 81 FR 4580 | |
| RIN Number | 0694-AG79 | |
| CFR Associated | Exports and Reporting and Recordkeeping Requirements |
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