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Pt. 515 31 CFR Ch.

V (7–1–02 Edition)

licenses; administrative decisions; 515.325 National securities exchange.


rulemaking; and requests for docu- 515.326 Custody of safe deposit boxes.
ments pursuant to the Freedom of In- 515.327 Blocked estate of a decedent.
515.329 Person subject to the jurisdiction of
formation and Privacy Acts (5 U.S.C. the United States.
552 and 552a), see § 500.802 and subpart D 515.330 Person within the United States.
of part 501 of this chapter. 515.331 Merchandise.
[62 FR 45106, Aug. 25, 1997] 515.332 Information and informational ma-
terials.
515.333 Depository institution.
PART 515—CUBAN ASSETS 515.334 United States national.
CONTROL REGULATIONS 515.335 Permanent resident alien.
515.336 Confiscated.
Subpart A—Relation of This Part to Other
Subpart D—Interpretations
Laws and Regulations
515.401 Reference to amended sections.
Sec. 515.402 Effect of amendment of sections of
515.101 Relation of this part to other laws this part or of other orders, etc.
and regulations. 515.403 Termination and acquisition of the
interest of a designated national.
Subpart B—Prohibitions 515.404 Transactions between principal and
515.201 Transactions involving designated agent.
foreign countries or their nationals; ef- 515.405 Exportation of securities, currency,
fective date. checks, drafts and promissory notes.
515.202 Transactions with respect to securi- 515.406 Drafts under irrevocable letters of
ties registered or inscribed in the name credit; documentary drafts.
of a designated national. 515.407 Administration of blocked estates of
515.203 Effect of transfers violating the pro- decedents.
visions of this part. 515.408 Access to certain safe deposit boxes
515.204 Importation of and dealings in cer- prohibited.
tain merchandise. 515.409 Certain payments to a designated
515.205 Holding of certain types of blocked foreign country and nationals through
property in interest-bearing accounts. third countries.
515.206 Exempt transactions. 515.410 Dealing abroad in Cuban origin com-
515.207 Entry of vessels engaged in trade modities.
with Cuba. 515.411 Exclusion from authorization in
515.208 Restrictions on loans, credits and § 515.518.
other financing. 515.413 [Reserved]
515.415 Travel to Cuba; transportation of
Subpart C—General Definitions certain Cuban nationals.
515.416–515.417 [Reserved]
515.301 Foreign country. 515.418 Transactions related to tele-
515.302 National. communications.
515.303 Nationals of more than one foreign 515.419 [Reserved]
country. 515.420 Fully-hosted travel to Cuba.
515.305 Designated national.
515.306 Specially designated national. Subpart E—Licenses, Authorizations, and
515.307 Unblocked national. Statements of Licensing Policy
515.308 Person.
515.309 Transactions. 515.502 Effect of subsequent license or au-
515.310 Transfer. thorization.
515.311 Property; property interests. 515.503 Exclusion from licenses and author-
515.312 Interest. izations.
515.313 Property subject to the jurisdiction 515.504 Certain judicial proceedings with re-
of the United States. spect to property of designated nation-
515.314 Banking institution. als.
515.316 License. 515.505 Certain persons unblocked.
515.317 General license. 515.506—515.507 [Reserved]
515.318 Specific license. 515.508 Payments to blocked accounts in do-
515.319 Blocked account. mestic banks.
515.320 Domestic bank. 515.509 Entries in certain accounts for nor-
515.321 United States; continental United mal service charges.
States. 515.510 Payments to the United States,
515.322 Authorized trade territory; member States and political subdivisions.
of the authorized trade territory. 515.511 Transactions by certain business en-
515.323 Occupied area. terprises.

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Office of Foreign Assets Control, Treasury Pt. 515
515.513 Purchase and sale of certain securi- 515.551 Joint bank accounts.
ties. 515.552 Proceeds of insurance policies.
515.514 Payment of dividends and interest 515.553 Bank accounts of official representa-
on and redemption and collection of se- tives in Cuba of foreign governments.
curities. 515.554 Transfers of abandoned property
515.515 Transfers of securities to blocked ac- under State laws.
counts in domestic banks. 515.555 Assets of Cuban firms wholly or sub-
515.516 Voting and soliciting of proxies on stantially owned by U.S. citizens.
securities. 515.556 [Reserved]
515.517 Access to safe deposit boxes under 515.557 Accounts of Cuban partnerships.
certain conditions. 515.558 Bunkering of Cuban vessels and fuel-
515.518 [Reserved] ing of Cuban aircraft by American–owned
515.519 Limited payments from accounts of or controlled foreign firms.
United States citizens abroad. 515.559 Certain transactions by U.S.-owned
515.520 Payments from accounts of United or controlled foreign firms with Cuba.
States citizens in employ of United 515.560 Travel–related transactions to, from,
States in foreign countries and certain and within Cuba by persons subject to
other persons. U.S. jurisdiction.
515.521 U.S. assets of certain Cuban corpora- 515.561 Persons visiting family members in
tions. Cuba.
515.522 U.S. assets of certain Cuban dece- 515.562 Officials of the U.S. government, for-
dents. eign governments, and certain intergov-
515.523 Transactions incident to the admin- ernmental organizations traveling to,
istration of decedents’ estates. from, and within Cuba on official busi-
515.524 Payment from, and transactions in ness.
the administration of certain trusts and 515.563 Journalistic activities in Cuba.
estates. 515.564 Professional research and profes-
515.525 Certain transfers by operation of sional meetings in Cuba.
law. 515.565 Educational activities.
515.526 Transactions involving blocked life 515.566 Religious activities in Cuba.
insurance policies. 515.567 Public performances, clinics, work-
515.527 Certain transactions with respect to shops, athletic and other competitions,
United States intellectual property. and exhibitions.
515.528 Certain transactions with respect to 515.568 [Reserved]
blocked foreign intellectual property. 515.569 Foreign passengers’ baggage.
515.529 Powers of attorney. 515.570 Remittances to nationals of Cuba.
515.530 Exportation of powers of attorney or 515.571 Certain transactions incident to
instructions relating to certain types of travel to, from, and within the United
transactions. States by Cuban nationals.
515.531 Payment of certain checks and 515.572 Authorization of transactions inci-
drafts. dent to the provision of travel services,
515.532 Completion of certain securities carrier services, and remittance for-
transactions. warding services.
515.533 Transactions incident to expor- 515.573 Transactions by news organizations.
tations from the United States and re- 515.574 Support for the Cuban people.
exportations of U.S.-origin items to 515.575 Humanitarian projects.
Cuba. 515.576 Activities of private foundations or
515.535 Exchange of certain securities. research or educational institutes.
515.536 Certain transactions with respect to
merchandise affected by § 515.204. Subpart F—Reports
515.540 [Reserved]
515.542 Telecommunications, information, 515.601 Records and reports.
and informational materials.
515.543 Proof of origin. Subpart G—Penalties
515.544 Gifts of Cuban origin goods.
515.545 Transactions related to information 515.701 Penalties.
and informational materials. 515.702 Prepenalty notice; contents; re-
515.546 Accounts of Cuban sole proprietor- spondent’s rights; service.
ships. 515.703 Response to prepenalty notice; re-
515.547 Research samples. quests for hearing and prehearing dis-
515.548 Services rendered by Cuba to United covery; waiver; informal settlement.
States aircraft. 515.704 Penalty imposition or withdrawal
515.549 Bank accounts and other property of absent a hearing request.
non-Cuban citizens who were in Cuba on 515.705 Time and opportunity to request a
or after July 8, 1963. hearing.
515.550 Certain vessel transactions author- 515.706 Hearing.
ized. 515.707 Interlocutory appeal.

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§ 515.101 31 CFR Ch. V (7–1–02 Edition)
515.708 Settlement during hearing pro- amended, the Foreign Assistance Act
ceedings. of 1961, 22 U.S.C. 2370, or any proclama-
515.709 Motions. tion, order, regulation or license issued
515.710 Discovery.
515.711 Summary disposition.
pursuant thereto.
515.712 Prehearing conferences and submis- [50 FR 27437, July 3, 1985, as amended at 62
sions. FR 45106, Aug. 25, 1997]
515.713 Public hearings.
515.714 Conduct of hearings.
515.715 Evidence. Subpart B—Prohibitions
515.716 Proposed decisions; recommended
decision of Administrative Law Judge; § 515.201 Transactions involving des-
final decision. ignated foreign countries or their
515.717 Judicial review. nationals; effective date.
515.718 Referral to United States Depart- (a) All of the following transactions
ment of Justice; administrative collec- are prohibited, except as specifically
tion measures. authorized by the Secretary of the
Subpart H—Procedures Treasury (or any person, agency, or in-
strumentality designated by him) by
515.801 Procedures. means of regulations, rulings, instruc-
515.802 Delegation by the Secretary of the tions, licenses, or otherwise, if either
Treasury. such transactions are by, or on behalf
515.803 Customs procedures; merchandise of, or pursuant to the direction of a
specified in § 515.204.
foreign country designated under this
Subpart I—Miscellaneous Provisions part, or any national thereof, or such
transactions involve property in which
515.901 Paperwork Reduction Act notice. a foreign country designated under this
AUTHORITY: 18 U.S.C. 2332d; 22 U.S.C. part, or any national thereof, has at
2370(a), 6001–6010; 31 U.S.C. 321(b); 50 U.S.C. any time on or since the effective date
App. 1–44; Pub. L. 101–410, 104 Stat. 890 (28 of this section had any interest of any
U.S.C. 2461 note); Pub. L. 106–387, 114 Stat. nature whatsoever, direct or indirect:
1549; E.O. 9193, 7 FR 5205, 3 CFR, 1938–1943 (1) All transfers of credit and all pay-
Comp., p. 1147; E.O. 9989, 13 FR 4891, 3 CFR, ments between, by, through, or to any
1943–1948 Comp., p. 748; Proc. 3447, 27 FR 1085, banking institution or banking institu-
3 CFR, 1959–1963 Comp., p. 157; E.O. 12854, 58
FR 36587, 3 CFR, 1993 Comp., p. 614.
tions wheresoever located, with respect
to any property subject to the jurisdic-
SOURCE: 28 FR 6974, July 9, 1963, unless oth- tion of the United States or by any per-
erwise noted. son (including a banking institution)
subject to the jurisdiction of the
Subpart A—Relation of This Part to United States;
Other Laws and Regulations (2) All transactions in foreign ex-
change by any person within the
§ 515.101 Relation of this part to other United States; and
laws and regulations. (3) The exportation or withdrawal
(a) This part is separate from, and from the United States of gold or silver
independent of, the other parts of this coin or bullion, currency or securities,
chapter with the exception of part 501 or the earmarking of any such prop-
of this chapter, the recordkeeping and erty, by any person within the United
reporting requirements and license ap- States.
plication and other procedures of which (b) All of the following transactions
apply to this part. No license or au- are prohibited, except as specifically
thorization contained in or issued pur- authorized by the Secretary of the
suant to one of those parts, or any Treasury (or any person, agency, or in-
other provision of law, authorizes any strumentality designated by him) by
transaction prohibited by this part. means of regulations, rulings, instruc-
(b) No license or authorization con- tions, licenses, or otherwise, if such
tained in or issued pursuant to this transactions involve property in which
part shall be deemed to authorize any any foreign country designated under
transaction prohibited by any law this part, or any national thereof, has
other than the Trading With the at any time on or since the effective
Enemy Act, 50 U.S.C. App. 5(b), as date of this section had any interest of

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Office of Foreign Assets Control, Treasury § 515.203

any nature whatsoever, direct or indi- § 515.203 Effect of transfers violating


rect: the provisions of this part.
(1) All dealings in, including, without (a) Any transfer after the ‘‘effective
limitation, transfers, withdrawals, or date’’ which is in violation of any pro-
exportations of, any property or evi- vision of this part or of any regulation,
dences of indebtedness or evidences of ruling, instruction, license, or other di-
ownership of property by any person rection or authorization thereunder
subject to the jurisdiction of the and involves any property in which a
United States; and designated national has or has had an
(2) All transfers outside the United interest since such ‘‘effective date’’ is
States with regard to any property or null and void and shall not be the basis
property interest subject to the juris- for the assertion or recognition of any
diction of the United States. interest in or right, remedy, power or
(c) Any transaction for the purpose privilege with respect to such property.
or which has the effect of evading or (b) No transfer before the ‘‘effective
avoiding any of the prohibitions set date’’ shall be the basis for the asser-
forth in paragraph (a) or (b) of this sec- tion or recognition of any right, rem-
tion is hereby prohibited. edy, power, or privilege with respect
(d) For the purposes of this part, the to, or interest in, any property in
term foreign country designated under which a designated national has or has
this part and the term designated foreign had an interest since the ‘‘effective
country mean Cuba and the term effec- date’’ unless the person with whom
tive date and the term effective date of such property is held or maintained
this section mean with respect to Cuba, had written notice of the transfer or by
or any national thereof, 12:01 a.m., any written evidence had recognized
e.s.t., July 8, 1963. such transfer prior to such ‘‘effective
(e) When a transaction results in the date.’’
blocking of funds at a banking institu- (c) Unless otherwise provided, an ap-
tion pursuant to this section and a propriate license or other authoriza-
party to the transaction believes the tion issued by or pursuant to the direc-
funds have been blocked due to mis- tion or authorization of the Secretary
taken identity, that party may seek to of the Treasury before, during or after
have such funds unblocked pursuant to a transfer shall validate such transfer
the administrative procedures set forth or render it enforceable to the same ex-
in § 501.806 of this chapter. tent as it would be valid or enforceable
[28 FR 6974, July 9, 1963, as amended at 62 FR but for the provisions of section 5(b) of
45106, Aug. 25, 1997] the Trading With the Enemy Act, as
amended, and this part and any ruling,
§ 515.202 Transactions with respect to order, regulation, direction or instruc-
securities registered or inscribed in tion issued hereunder.
the name of a designated national. (d) Transfers of property which oth-
Unless authorized by a license ex- erwise would be null and void, or unen-
pressly referring to this section, the forceable by virtue of the provisions of
acquisition, transfer (including the this section shall not be deemed to be
transfer on the books of any issuer or null and void, or unenforceable pursu-
agent thereof), disposition, transpor- ant to such provisions, as to any person
tation, importation, exportation, or with whom such property was held or
withdrawal of, or the endorsement or maintained (and as to such person
guaranty of signatures on or otherwise only) in cases in which such person is
dealing in any security (or evidence able to establish each of the following:
thereof) registered or inscribed in the (1) Such transfer did not represent a
name of any designated national is pro- willful violation of the provisions of
hibited irrespective of the fact that at this part by the person with whom such
any time (either prior to, on, or subse- property was held or maintained;
quent to the ‘‘effective date’’) the reg- (2) The person with whom such prop-
istered or inscribed owner thereof may erty was held or maintained did not
have, or appears to have, assigned, have reasonable cause to know or sus-
transferred or otherwise disposed of pect, in view of all the facts and cir-
any such security. cumstances known or available to such

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§ 515.204 31 CFR Ch. V (7–1–02 Edition)

person, that such transfer required a li- cept to the extent indicated, be deemed
cense or authorization by or pursuant to include chattels or real property.
to the provisions of this part and was [28 FR 6974, July 9, 1963, as amended at 28 FR
not so licensed or authorized or if a li- 7941, Aug. 3, 1963]
cense or authorization did purport to
cover the transfer, that such license or § 515.204 Importation of and dealings
authorization had been obtained by in certain merchandise.
misrepresentation or the withholding (a) Except as specifically authorized
of material facts or was otherwise by the Secretary of the Treasury (or
fraudulently obtained; and any person, agency, or instrumentality
(3) Promptly upon discovery that: designated by him) by means of regula-
(i) Such transfer was in violation of tions, rulings, instructions, licenses, or
the provisions of this part or any regu- otherwise, no person subject to the ju-
lation, ruling, instruction, license or risdiction of the United States may
other direction or authorization there- purchase, transport, import, or other-
under, or wise deal in or engage in any trans-
(ii) Such transfer was not licensed or action with respect to any merchandise
authorized by the Secretary of the outside the United States if such mer-
Treasury, or chandise:
(iii) If a license did purport to cover (1) Is of Cuban origin; or
the transfer, such license had been ob- (2) Is or has been located in or trans-
tained by misrepresentation or the ported from or through Cuba; or
withholding of material facts or was (3) Is made or derived in whole or in
otherwise fraudulently obtained; part of any article which is the growth,
produce or manufacture of Cuba.
the person with whom such property (b) [Reserved]
was held or maintained filed with the
Treasury Department, Washington, § 515.205 Holding of certain types of
D.C., a report in triplicate setting forth blocked property in interest-bear-
in full the circumstances relating to ing accounts.
such transfer. The filing of a report in (a) Except as provided by paragraphs
accordance with the provisions of this (d), (e) and (f) of this section, or as au-
paragraph shall not be deemed to be thorized by the Secretary of the Treas-
compliance or evidence of compliance ury or his delegate by specific license,
with paragraphs (d) (1) and (2) of this any person holding any property in-
section. cluded in paragraph (h) of this section
(e) Unless licensed or authorized by is prohibited from holding, with-
§ 515.504 or otherwise licensed or au- holding, using, transferring, engaging
thorized pursuant to this chapter any in any transactions involving, or exer-
attachment, judgment, decree, lien, cising any right, power, or privilege
execution, garnishment, or other judi- with respect to any such property, un-
cial process is null and void with re- less it is held in an interest-bearing ac-
spect to any property in which on or count in a domestic bank.
since the ‘‘effective date’’ there existed (b) Any person presently holding
the interest of a designated foreign property subject to the provisions of
country or national thereof. paragraph (a) of this section which, as
(f) For the purpose of this section the of the effective date of this section, is
term property includes gold, silver, bul- not being held in accordance with the
lion, currency, coin, credit, securities provisions of that paragraph shall
(as that term is defined in section 2(1) transfer such property to or hold such
of the Securities Act of 1933, as amend- property or cause such property to be
ed), bills of exchange, notes, drafts, ac- held in an interest-bearing account in
ceptances, checks, letters of credit, any domestic bank within 30 days of
book credits, debts, claims, contracts, the effective date of this section.
negotiable documents of title, mort- (c) Any person holding any checks or
gages, liens, annuities, insurance poli- drafts subject to the provisions of
cies, options and futures in commod- § 515.201 is authorized and directed,
ities, and evidences of any of the fore- wherever possible consistent with state
going. The term property shall not, ex- law (except as otherwise specifically

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Office of Foreign Assets Control, Treasury § 515.205

provided in paragraph (c)(3) of this sec- balance not invested in securities in


tion), to negotiate or present for col- accordance with § 515.513. The interest
lection or payment such instruments paid on such accounts by a broker/deal-
and credit the proceeds to interest- er who does not elect to hold such
bearing accounts. Any transaction by property for a customer’s account in a
any person incident to the negotiation, domestic bank shall not be less than
processing. presentment, collection or the maximum rate payable on the
payment of such instruments and de- shortest time deposit available in any
posit of the proceeds into an interest- domestic bank in the jurisdiction in
bearing account is hereby authorized: which the broker/dealer holds the ac-
Provided that: count.
(1) The transaction does not rep- (f) Property subject to the provisions
resent, directly or indirectly, a trans- of paragraphs (a) and (b) of this sec-
fer of the interest of a designated na- tion, held by a state agency charged
tional to any other country or person; with the custody of abandoned or un-
(2) The proceeds are held in a blocked claimed property under § 515.554 may
account indicating the designated na- continue to be held by the agency pro-
tional who is the payee or owner of the vided interest is credited to the
instrument; and, blocked account in which the property
(3) In the case of a blocked check or is held by the agency, or the property
draft which has been purchased by the is held by the agency in a blocked ac-
maker/drawer from the drawee bank count in a domestic bank. The interest
(e.g., cashier’s check, money order, or credited to such accounts by an agency
traveler’s check) or which is drawn which does not elect to hold such prop-
against a presently existing account,
erty in a domestic bank shall not be
such bank, on presentment of the in-
less than the maximum rate payable on
strument in accordance with the provi-
the shortest time deposit available in
sions of this section, shall either:
any domestic bank in the state.
(i) Pay the instrument (subject to
paragraphs (c)(1) and (2) of this section) (g) For purposes of this section, the
or term interest-bearing account means a
(ii) Credit a blocked account on its blocked account earning interest at no
books with the amount payable on the less than the maximum rate payable on
instrument. the shortest time deposit in the domes-
tic bank where the account is held:
In either event, the blocked account
Provided however, That such an account
shall be identified as resulting from
may include six-month Treasury bills
the proceeds of a blocked check or
or insured certificates, with a maturity
draft, and the identification shall in-
not exceeding six-months, appropriate
clude a reference to the names of both
to the amounts involved.
the maker and payee of the instru-
ment. (h) The following types of property
(d) Property subject to the provisions are subject to paragraphs (a) and (b) of
of paragraph (a) or (b) of this section, this section:
held by a person claiming a set-off (1) Any currency, bank deposit and
against such property, is exempt from bank accounts subject to the provi-
the provisions of paragraphs (a), (b) sions of § 515.201;
and (c) of this section to the extent of (2) Any property subject to the provi-
the set-off: Provided however, That in- sions of § 515.201 which consists, in
terest shall be due from 30 days after whole or in part, of undisputed and ei-
the effective date of this section if it ther liquidated or matured debts,
should ultimately be determined that claims, obligations or other evidence of
the claim to a set-off is without merit. indebtedness, to the extent of any
(e) Property subject to the provisions amount that is undisputed and liq-
of paragraphs (a) and (b) of this sec- uidated or matured; and
tion, held in a customer’s account by a (3) Any proceeds resulting from the
registered broker/dealer in securities, payment of an obligation under para-
may continue to be held for the cus- graph (c) of this section.
tomer by the broker/dealer provided in- (i) For purposes of this section, the
terest is credited to the account on any term domestic bank includes any

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§ 515.206 31 CFR Ch. V (7–1–02 Edition)

FSLIC-insured institution (as defined mission of restricted technical data as


in 12 CFR 561.1). defined in the Export Administration
(j) For the purposes of this section Regulations, 15 CFR parts 730–774, or to
the term person includes the United the exportation of goods for use in the
States Government or any agency or transmission of any data. The expor-
instrumentality thereof, except where tation of such goods to designated for-
the agency or instrumentality submits eign countries is prohibited, as pro-
to the Office of Foreign Assets Control vided in § 515.201 of this part and § 785.1
an opinion of its General Counsel that of the Export Administration Regula-
either: tions.
(1) It lacks statutory authority to (4) This section does not authorize
comply with this section, or transactions related to travel to Cuba
(2) The requirements of paragraphs when such travel is not otherwise au-
(a) and (b) of this section are incon- thorized under § 515.545.
sistent with the statutory program
under which it operates. Example #1: A U.S. publisher ships 500 cop-
ies of a book to Cuba directly from Miami
[44 FR 11770, Mar. 2, 1979] aboard a chartered aircraft, and receives
payment by means of a letter of credit issued
§ 515.206 Exempt transactions. by a Cuban bank and confirmed by an Amer-
(a) Information and informational ma- ican bank. These are permissible trans-
terials. (1) The importation from any actions under this section.
country and the exportation to any Example #2: A Cuban party exports a single
country of information or informa- master copy of a Cuban motion picture to a
tional materials as defined in § 515.332, U.S. party and licenses the U.S. party to du-
plicate, distribute, show and exploit in the
whether commercial or otherwise, re-
United States the Cuban film in any me-
gardless of format or medium of trans- dium, including home video distribution, for
mission, are exempt from the prohibi- five years, with the Cuban party receiving
tions and regulations of this part ex- 40% of the net income. All transactions re-
cept for payments owed to Cuba for lating to the activities described in this ex-
telecommunications services between ample are authorized under this section or
Cuba and the United States, which are § 515.545.
subject to the provisions of § 515.542. Example #3: A U.S. recording company pro-
(2) This section does not authorize poses to contract with a Cuban musician to
transactions related to information or create certain musical compositions, and to
informational materials not fully cre- advance royalties of $10,000 to the musician.
The music written in Cuba is to be recorded
ated and in existence at the date of the
in a studio that the recording company owns
transaction, or to the substantive or in the Bahamas. These are all prohibited
artistic alteration or enhancement of transactions. The U.S. party is prohibited
information or informational mate- under § 515.201 from contracting for the
rials, or to the provision of marketing Cuban musician’s services, from transferring
and business consulting services by a $10,000 to Cuba to pay for those services, and
person subject to the jurisdiction of from providing the Cuban with production
the United States. Such prohibited services through the use of its studio in the
transactions include, without limita- Bahamas. No information or informational
tion, payment of advances for informa- materials are in being at the time of these
proposed transactions. However, the U.S. re-
tion or informational materials not yet cording company may contract to purchase
created and completed, provision of and import preexisting recordings by the
services to market, produce or co- Cuban musician, or to copy the recordings in
produce, create or assist in the cre- the United States and pay negotiated royal-
ation of information or informational ties to Cuba under this section or § 515.545.
materials, and payment of royalties to Example #4: A Cuban party enters into a
a designated national with respect to subpublication agreement licensing a U.S.
income received for enhancements or party to print and publish copies of a
alterations made by persons subject to musicial composition and to sub-license
rights of public performance, adaptation, and
the jurisdiction of the United States to arrangement of the musical composition,
information or informational materials with payment to be a percentage of income
imported from a designated national. received. All transactions related to the ac-
(3) This section does not authorize tivities described in this example are author-
transactions incident to the trans- ized under this section and § 515.545, except

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Office of Foreign Assets Control, Treasury § 515.302
for adaptation, and arrangement, which con- Subpart C—General Definitions
stitute artistic enhancement of the Cuban
composition. Payment to the Cuban party § 515.301 Foreign country.
may not reflect income received as a result
of these enhancements. The term foreign country also in-
cludes, but not by way of limitation:
(b) Donation of food. The prohibitions (a) The state and the government of
contained in this part do not apply to any such territory on or after the ‘‘ef-
transactions incident to the donation fective date’’ as well as any political
of food to nongovernmental organiza- subdivision, agency, or instrumentality
tions or individuals in Cuba. thereof or any territory, dependency,
[54 FR 5233, Feb. 2, 1989, as amended at 60 FR colony, protectorate, mandate, domin-
39256, Aug. 2, 1995; 64 FR 25812, May 13, 1999] ion, possession or place subject to the
jurisdiction thereof,
§ 515.207 Entry of vessels engaged in (b) Any other government (including
trade with Cuba. any political subdivision, agency, or in-
Except as specifically authorized by strumentality thereof) to the extent
the Secretary of the Treasury (or any and only to the extent that such gov-
person, agency or instrumentality des- ernment exercises or claims to exercise
ignated by him), by means of regula- control, authority, jurisdiction or sov-
tions, rulings, instructions, licenses or ereignty over territory which on the
‘‘effective date’’ constituted such for-
otherwise,
eign country,
(a) No vessel that enters a port or
(c) Any person to the extent that
place in Cuba to engage in the trade of
such person is, or has been, or to the
goods or the purchase or provision of
extent that there is reasonable cause
services, may enter a U.S. port for the
to believe that such person is, or has
purpose of loading or unloading freight been, since the ‘‘effective date,’’ acting
for a period of 180 days from the date or purporting to act directly or indi-
the vessel departed from a port or place rectly for the benefit or on behalf of
in Cuba; and any of the foregoing, and
(b) No vessel carrying goods or pas- (d) Any territory which on or since
sengers to or from Cuba or carrying the ‘‘effective date’’ is controlled or oc-
goods in which Cuba or a Cuban na- cupied by the military, naval or police
tional has an interest may enter a U.S. forces or other authority of such for-
port with such goods or passengers on eign country.
board.
NOTE TO § 515.207: For the waiver of the pro- § 515.302 National.
hibitions contained in this section for cer- (a) The term national shall include:
tain vessels engaged in licensed or exempt (1) A subject or citizen of a country
trade with Cuba, see § 515.550.
or any person who has been domiciled
[58 FR 34710, June 29, 1993, as amended at 66 in or a permanent resident of that
FR 36687, July 12, 2001] country at any time on or since the
‘‘effective date,’’ except persons who
§ 515.208 Restrictions on loans, credits were resident or domiciled there in the
and other financing. service of the U.S. Government.
No United States national, perma- (2) Any partnership, association, cor-
nent resident alien, or United States poration, or other organization, orga-
agency may knowingly make a loan, nized under the laws of, or which on or
extend credit or provide other financ- since the ‘‘effective date’’ had or has
ing for the purpose of financing trans- had its principal place of business in a
actions involving confiscated property foreign country, or which on or since
the claim to which is owned by a such effective date was or has been
United States national, except for fi- controlled by, or a substantial part of
nancing by a United States national the stock, shares, bonds, debentures,
owning such a claim for a transaction notes, drafts, or other securities or ob-
ligations of which, was or has been
permitted under United States law.
owned or controlled by, directly or in-
[61 FR 37386, July 18, 1996] directly, a foreign country and/or one

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§ 515.303 31 CFR Ch. V (7–1–02 Edition)

or more nationals thereof as defined in national thereof, such partnership, as-


this section. sociation, corporation or other organi-
(3) Any person to the extent that zation shall be deemed to be a national
such person is or has been, since the of each of such foreign countries.
‘‘effective date’’ acting or purporting
to act directly or indirectly for the § 515.305 Designated national.
benefit or on behalf of any national of
For the purposes of this part, the
a foreign country.
(4) Any other person who there is rea- term designated national shall mean
sonable cause to believe is a ‘‘national’’ Cuba and any national thereof includ-
as defined in this section. ing any person who is a specially des-
(b) Persons who travel in Cuba do not ignated national.
become nationals of Cuba solely be-
cause of such travel. § 515.306 Specially designated na-
(c) The Secretary of the Treasury re- tional.
tains full power to determine that any (a) The term specially designated na-
person is or shall be deemed to be a tional shall mean:
‘‘national’’ within the meaning of this (1) Any person who is determined by
section, and to specify the foreign the Secretary of the Treasury to be a
country of which such person is or specially designated national,
shall be deemed to be a national. (2) Any person who on or since the
[28 FR 6974, July 9, 1963, as amended at 50 FR ‘‘effective date’’ has acted for or on be-
27437, July 3, 1985; 64 FR 25812, May 13, 1999] half of the Government or authorities
exercising control over a designated
§ 515.303 Nationals of more than one
foreign country. foreign country, or
(3) Any partnership, association, cor-
(a) Any person who by virtue of any
poration or other organization which
provision in this chapter is a national
on or since the ‘‘effective date’’ has
of more than one foreign country shall
be deemed to be a national of each of been owned or controlled directly or in-
such foreign countries. directly by the Government or authori-
(b) In any case in which a person is a ties exercising control over a des-
national of two or more designated for- ignated foreign country or by any spe-
eign countries, as defined in this chap- cially designated national.
ter, a license or authorization with re- (b) [Reserved]
spect to nationals of one of such des-
NOTE TO § 515.306: Please refer to the appen-
ignated foreign countries shall not be dices at the end of this chapter for listings of
deemed to apply to such person unless persons designated pursuant to this part.
a license or authorization of equal or Section 501.807 of this chapter sets forth the
greater scope is outstanding with re- procedures to be followed by persons seeking
spect to nationals of each other des- administrative reconsideration of their des-
ignated foreign country of which such ignation or that of a vessel as blocked, or
person is a national. who wish to assert that the circumstances
(c) In any case in which the combined resulting in the designation are no longer ap-
interests of two or more designated for- plicable.
eign countries, as defined in this chap- [28 FR 6974, July 9, 1963, as amended at 61 FR
ter, and/or nationals thereof are suffi- 32938, June 26, 1996; 62 FR 45106, Aug. 25, 1997]
cient in the aggregate to constitute
control or ownership of 25 per centum § 515.307 Unblocked national.
or more of the stock, shares, bonds, de-
bentures, notes, drafts, or other securi- Any person licensed pursuant to
ties or obligations of a partnership, as- § 515.505 licensed as an unblocked na-
sociation, corporation or other organi- tional shall, while so licensed, be re-
zation, but such control or a substan- garded as a person within the United
tial part of such stock, shares, bonds, States who is not a national of any des-
debentures, notes, drafts, or other se- ignated foreign country: Provided, how-
curities or obligations is not held by ever, That the licensing of any person
any one such foreign country and/or as an unblocked national shall not be

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Office of Foreign Assets Control, Treasury § 515.312

deemed to suspend in any way the re- son of a judgment or decree of any for-
quirements of any section of this chap- eign country; the fulfillment of any
ter relating to reports, or the produc- condition, or the exercise of any power
tion of books, documents, and records of appointment, power of attorney, or
specified therein. other power.
[28 FR 6974, July 9, 1963, as amended at 54 FR
5233, Feb. 2, 1989] § 515.311 Property; property interests.
(a) Except as defined in § 515.203(f) for
§ 515.308 Person. the purposes of that section the terms
The term person means an individual, property and property interest or property
partnership, association, corporation, interests shall include, but not by way
or other organization. of limitation, money, checks, drafts,
bullion, bank deposits, savings ac-
§ 515.309 Transactions. counts, debts, indebtedness obligations,
The phrase transactions which involve notes, debentures, stocks, bonds, cou-
property in which a designated foreign pons, and other financial securities,
country, or any national thereof, has any bankers’ acceptances, mortgages,
interest of any nature whatsoever, direct pledges, liens or other rights in the na-
or indirect, includes, but not by way of ture of security, warehouse receipts,
limitation: bills of lading, trust receipts, bills of
(a) Any payment or transfer to such sale, any other evidences of title, own-
designated foreign country or national ership or indebtedness, powers of attor-
thereof, ney, goods, wares, merchandise, chat-
(b) Any export or withdrawal from tels, stocks on hand, ships, goods on
the United States to such designated ships, real estate mortgages, deeds of
foreign country, and trust, vendors’ sales agreements, land
(c) Any transfer of credit, or payment contracts, real estate and any interest
of an obligation, expressed in terms of therein, leaseholds, ground rents, op-
the currency of such designated foreign tions, negotiable instruments, trade
country. acceptances, royalties, book accounts,
accounts payable, judgments, patents,
§ 515.310 Transfer. trademarks, copyrights, contracts or
The term transfer shall mean any ac- licenses affecting or involving patents,
tual or purported act or transaction, trademarks or copyrights, insurance
whether or not evidenced by writing, policies, safe deposit boxes and their
and whether or not done or preformed contents, annuities, pooling agree-
within the United States, the purpose, ments, contracts of any nature whatso-
intent, or effect of which is to create, ever, services, and any other property,
surrender, release, transfer, or alter, real, personal, or mixed, tangible or in-
directly or indirectly, any right, rem- tangible, or interest or interests there-
edy, power, privilege, or interest with in, present, future or contingent.
respect to any property and without (b) As used in § 515.208, the term prop-
limitation upon the foregoing shall in- erty means any property (including pat-
clude the making, execution, or deliv- ents, copyrights, trademarks, and any
ery of any assignment, power, convey- other form of intellectual property),
ance, check, declaration, deed, deed of whether real, personal, or mixed, and
trust, power of attorney, power of ap- any present, future, or contingent
pointment, bill of sale, mortgage, re- right, security, or other interest there-
ceipt, agreement, contract, certificate, in, including any leasehold interest.
gift, sale, affidavit, or statement; the
appointment of any agent, trustee, or [28 FR 6974, July 9, 1963, as amended at 50 FR
other fiduciary; the creation or trans- 27437, July 3, 1985; 56 FR 49847, Oct. 2, 1991; 61
fer of any lien; the issuance, docketing, FR 37386, July 18, 1996]
filing, or the levy of or under any judg-
ment, decree, attachment, execution, § 515.312 Interest.
or other judicial or administrative The term interest when used with re-
process or order, or the service of any spect to property shall mean an inter-
garnishment; the acquisition of any in- est of any nature whatsoever, direct or
terest of any nature whatsoever by rea- indirect.

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§ 515.313 31 CFR Ch. V (7–1–02 Edition)

§ 515.313 Property subject to the juris- § 515.319 Blocked account.


diction of the United States. The term blocked account shall mean
(a) The phrase property subject to the an account in which any designated na-
jurisdiction of the United States includes, tional has an interest, with respect to
without limitation, securities, whether which account payments, transfers or
registered or bearer, issued by: withdrawals or other dealings may not
(1) The United States or any State, be made or effected except pursuant to
district, territory, possession, county, an authorization or license authorizing
municipality, or any other subdivision such action. The term blocked account
or agency or instrumentality of any shall not be deemed to include ac-
thereof; or counts of unblocked nationals.
(2) Any person with the United States
[28 FR 6974, July 9, 1963; 28 FR 7427, July 20,
whether the certificate which evi- 1963]
dences such property or interest is
physically located within or outside § 515.320 Domestic bank.
the United States.
The term domestic bank shall mean
(b) The phrase property subject to the
any branch or office within the United
jurisdiction of the United States also in-
States of any of the following which is
cludes, without limitation, securities,
not a national of a designated foreign
whether registered or bearer, by whom-
country; any bank or trust company
soever issued, if the instrument evi-
incorporated under the banking laws of
dencing such property or interest is
the United States or any State, terri-
physically located within the United
tory, or district of the United States,
States.
or any private bank or banker subject
§ 515.314 Banking institution. to supervision and examination under
the banking laws of the United States
The term banking institution shall in- or of any State, territory or district of
clude any person engaged primarily or the United States. The Secretary of the
incidentally in the business of banking, Treasury may also authorize any other
of granting or transferring credits, or banking institution to be treated as a
of purchasing or selling foreign ex- ‘‘domestic bank’’ for the purpose of
change or procuring purchases and sell- this definition or for the purpose of any
ers thereof, as principal or agent, or or all sections of this part.
any person holding credits for others as
a direct or incidental part of his busi- § 515.321 United States; continental
ness, or any broker; and, each prin- United States.
cipal, agent, home office, branch or The term United States means the
correspondent of any person so engaged United States and all areas under the
shall be regarded as a separate ‘‘bank- jurisdiction or authority thereof, in-
ing institution.’’ cluding the Trust Territory of the Pa-
§ 515.316 License. cific Islands. The term continental
United States means the States of the
Except as otherwise specified, the United States and the District of Co-
term license shall mean any license or lumbia.
authorization contained in or issued
pursuant to this part. [49 FR 27144, July 2, 1984]

§ 515.317 General license. § 515.322 Authorized trade territory;


member of the authorized trade ter-
A general license is any license or au- ritory.
thorization the terms of which are set
(a) The term authorized trade territory
forth in this part.
includes all countries, including any
§ 515.318 Specific license. colony, territory, possession, or protec-
torate, except those countries subject
A specific license is any license or to sanctions pursuant to this chapter.
authorization issued pursuant to this The term does not include the United
part but not set forth in this part. States.
[28 FR 6974, July 9, 1963; 28 FR 7427, July 20, (b) The term member of the authorized
1963] trade territory shall mean any of the

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Office of Foreign Assets Control, Treasury § 515.332

foreign countries or political subdivi- trolled by persons specified in para-


sions comprising the authorized trade graph (a) or (c) of this section.
territory. [50 FR 27437, July 3, 1985]
[43 FR 51762, Nov. 7, 1978, as amended at 60
FR 54195, Oct. 20, 1995] § 515.330 Person within the United
States.
§ 515.323 Occupied area. (a) The term person within the United
The term occupied area shall mean States, includes:
any territory occupied by a designated (1) Any person, wheresoever located,
foreign country which was not occu- who is a resident of the United States;
pied by such country prior to the ‘‘ef- (2) Any person actually within the
fective date’’ of this part. United States;
(3) Any corporation organized under
§ 515.325 National securities exchange. the laws of the United States or of any
The term national securities exchange state, territory, possession, or district
shall mean an exchange registered as a of the United States; and
national securities exchange under sec- (4) Any partnership, association, cor-
tion 6 of the Securities Exchange Act poration, or other organization,
of 1934 (48 Stat. 885, 15 U.S.C. 78f). wheresoever organized, or doing busi-
ness, which is owned or controlled by
§ 515.326 Custody of safe deposit any person or persons specified in para-
boxes. graph (a) (1), (2), or (3) of the section.
Safe deposit boxes shall be deemed to (b) [Reserved]
be in the custody not only of all persons
having access thereto but also of the § 515.331 Merchandise.
lessors of such boxes whether or not The term merchandise means all
such lessors have access to such boxes. goods, wares and chattels of every de-
The foregoing shall not in any way be scription without limitation of any
regarded as a limitation upon the kind.
meaning of the term custody.
§ 515.332 Information and informa-
§ 515.327 Blocked estate of a decedent. tional materials.
The term blocked estate of a decedent (a) For purposes of this part, the
shall mean any decedent’s estate in term information and informational ma-
which a designated national has an in- terials means:
terest. A person shall be deemed to (1) Publications, films, posters, pho-
have an interest in a decedent’s estate nograph records, photographs, micro-
if he: films, microfiche, tapes, compact
(a) Was the decedent; disks, CD ROMs, artworks, news wire
(b) Is a personal representative; or feeds, and other information and infor-
(c) Is a creditor, heir, legatee, devi- mational articles.
see, distributee, or beneficiary. (2) To be considered informational
materials, artworks must be classified
§ 515.329 Person subject to the juris- under Chapter subheading 9701, 9702, or
diction of the United States. 9703 of the Harmonized Tariff Schedule
The term person subject to the jurisdic- of the United States.
tion of the United States includes: (b) The term information and informa-
(a) Any individual, wherever located, tional materials does not include items:
who is a citizen or resident of the (1) That would be controlled for ex-
United States; port pursuant to section 5 of the Ex-
(b) Any person within the United port Administration Act of 1979, 50
States as defined in § 515.330; U.S.C. App. 2401–2420 (1993) (the
(c) Any corporation organized under ‘‘EAA’’), or section 6 of the EAA to the
the laws of the United States or of any extent that such controls promote non-
State, territory possession, or district proliferation of antiterrorism policies
of the United States; and of the United States, including ‘‘soft-
(d) Any corporation, partnership, or ware’’ that is not ‘‘publicly available’’
association, wherever organized or as these terms are defined in 15 CFR
doing business, that is owned or con- parts 779 and 799.1 (1994); or

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§ 515.333 31 CFR Ch. V (7–1–02 Edition)

(2) With respect to which acts are ment or other mutually accepted set-
prohibited by 18 U.S.C. chapter 37. tlement procedure; and
[60 FR 39256, Aug. 2, 1995] (b) The repudiation by the Cuban
Government of, the default by the
§ 515.333 Depository institution. Cuban Government on, or the failure of
the Cuban Government to pay, on or
The term depository institution means
after January 1, 1959:
any of the following:
(1) A debt of any enterprise which has
(a) An insured bank as defined in sec-
tion 3 of the Federal Deposit Insurance been nationalized, expropriated, or oth-
Act; erwise taken by the Cuban Govern-
(b) An insured institution as defined ment;
in section 408(a) of the National Hous- (2) A debt which is a charge on prop-
ing Act; erty nationalized, expropriated, or oth-
(c) An insured credit union as defined erwise taken by the Cuban Govern-
in section 101 of the Federal Credit ment; or
Union Act; or (3) A debt which was incurred by the
(d) Any other institution that is car- Cuban Government in satisfaction or
rying on banking activities pursuant to settlement of a confiscated property
a charter from a Federal or state bank- claim.
ing authority. [61 FR 37386, July 18, 1996]
[57 FR 53997, Nov. 16, 1992]
Subpart D—Interpretations
§ 515.334 United States national.
As used in § 515.208, the term United § 515.401 Reference to amended sec-
States national means: tions.
(a) Any United States citizen; or Reference to any section of this part
(b) Any other legal entity which is or to any regulation, ruling, order, in-
organized under the laws of the United struction, direction or license issued
States, or of any State, the District of pursuant to this part shall be deemed
Columbia, or any commonwealth, terri- to refer to the same as currently
tory, or possession of the United amended unless otherwise so specified.
States, and which has its principal
place of business in the United States. § 515.402 Effect of amendment of sec-
tions of this part or of other orders,
[61 FR 37386, July 18, 1996] etc.
§ 515.335 Permanent resident alien. Any amendment, modification, or
revocation of any section of this part
As used in § 515.208, the term perma-
or of any order, regulation, ruling, in-
nent resident alien means an alien law-
fully admitted for permanent residence struction, or license issued by or under
into the United States. the direction of the Secretary of the
Treasury pursuant to section 3(a) or
[61 FR 37386, July 18, 1996] 5(b) of the Trading With the Enemy
Act, as amended, or pursuant to Proc-
§ 515.336 Confiscated. lamation 3447, shall not unless other-
As used in § 515.208, the term con- wise specifically provided be deemed to
fiscated refers to: affect any act done or omitted to be
(a) The nationalization, expropria- done, or any suit or proceeding had or
tion, or other seizure by the Cuban commenced in any civil or criminal
Government of ownership or control of case, prior to such amendment, modi-
property, on or after January 1, 1959: fication, or revocation, and all pen-
(1) Without the property having been alties, forfeitures, and liabilities under
returned or adequate and effective any such section, order, regulation,
compensation provided; or ruling, instruction or license shall con-
(2) Without the claim to the property tinue and may be enforced as if such
having been settled pursuant to an amendment, modification, or revoca-
international claims settlement agree- tion had not been made.

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Office of Foreign Assets Control, Treasury § 515.410

§ 515.403 Termination and acquisition (c) Documentary drafts in which any


of the interest of a designated na- designated national has on or since the
tional. ‘‘effective date’’ had any interest.
(a) Except as provided in § 515.525,
§ 515.407 Administration of blocked es-
whenever a transaction licensed or au- tates of decedents.
thorized by or pursuant to this part re-
sults in the transfer of property (in- Section 515.201 prohibits all trans-
cluding any property interest) away actions incident to the administration
from a designated national, such prop- of the blocked estate of a decedent, in-
erty shall no longer be deemed to be cluding the appointment and qualifica-
property in which a designated na- tion of personal representatives, the
tional has or has had an interest unless collection and liquidation of assets, the
there exists in such property an inter- payment of claims, and distribution to
est of a designated national, the trans- beneficiaries. Attention is directed to
fer of which has not been effected pur- § 515.523 which authorizes certain trans-
suant to license or other authorization. actions in connection with the admin-
(b) Unless otherwise specifically pro- istration of blocked estates of dece-
vided in a license or authorization con- dents, and § 515.522 which authorizes
tained in or issued pursuant to this the unblocking by specific license of
part, if property (including any prop- estate assets to certain heirs under cer-
erty interest) is transferred to a des- tain circumstances.
ignated national such property shall be [28 FR 6974, July 9, 1963, as amended at 54 FR
deemed to be property in which there 5234, Feb. 2, 1989; 64 FR 25812, May 13, 1999]
exists the interest of a designated na-
tional. § 515.408 Access to certain safe deposit
boxes prohibited.
§ 515.404 Transactions between prin- Section 515.201 prohibits access to
cipal and agent. any safe deposit box within the United
A transaction between any person States in the custody of any designated
within the United States and any prin- national or containing any property in
cipal, agent, home office, branch, or which any designated national has any
correspondent, outside the United interest or which there is reasonable
States of such person is a transaction cause to believe contains property in
prohibited by § 515.201 to the same ex- which any such designated national
tent as if the parties to the transaction has any interest. Attention is directed
were in no way affiliated or associated to § 515.517 which authorizes access to
with each other. such safe deposit boxes under certain
conditions.
§ 515.405 Exportation of securities,
currency, checks, drafts and prom- § 515.409 Certain payments to a des-
issory notes. ignated foreign country and nation-
Section 515.201 prohibits the expor- als through third countries.
tation of securities, currency, checks, Section 515.201 prohibits any request
drafts and promissory notes to a des- or authorization made by or on behalf
ignated foreign country. of a bank or other person within the
United States to a bank or other per-
§ 515.406 Drafts under irrevocable let- son outside of the United States as a
ters of credit; documentary drafts. result of which request or authoriza-
Section 515.201 prohibits the presen- tion such latter bank or person makes
tation, acceptance or payment of: a payment or transfer of credit either
(a) Drafts or other orders for pay- directly or indirectly to a designated
ment drawn under irrevocable letters national.
of credit issued in favor or on behalf of
any designated national; § 515.410 Dealing abroad in Cuban ori-
(b) Drafts or other orders for pay- gin commodities.
ment, in which any designated national Section 515.204 prohibits, unless li-
has on or since the ‘‘effective date’’ had censed, the importation of commod-
any interest, drawn under any irrev- ities of Cuban origin. It also prohibits,
ocable letter of credit; and unless licensed, persons subject to the

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§ 515.411 31 CFR Ch. V (7–1–02 Edition)

jurisdiction of the United States from of meals, lodging, fuel, payments of


purchasing, transporting or otherwise travel or maintenance expenses, or oth-
dealing in commodities of Cuban origin erwise, in connection with travel to or
which are outside the United States. from Cuba or travel or maintenance
[39 FR 25317, July 10, 1974]
within Cuba.
(b) Transactions incident to the trav-
§ 515.411 Exclusion from authorization el to the United States of Cuban na-
in § 515.518. tionals traveling without a visa issued
Heirs, legatees, etc. who acquire an by the Department of State are not au-
interest in blocked property after July thorized under the provisions of
8, 1963 pursuant to § 515.525 are excluded § 515.571.
from the provisions of § 515.518 author- (c) Transactions described in para-
izing debits to blocked accounts for graph (a) of this section are not
certain personal expenditures. ‘‘transactions ordinarily incident to
travel to and from Cuba’’ as set forth
[39 FR 25317, July 10, 1974] in § 515.560(c).
§ 515.413 [Reserved] [45 FR 32671, May 19, 1980, as amended at 64
FR 25812, May 13, 1999]
§ 515.415 Travel to Cuba; transpor-
tation of certain Cuban nationals. §§ 515.416–515.417 [Reserved]
(a) The following transactions are § 515.418 Transactions related to tele-
prohibited by § 515.201 when in connec- communications.
tion with the transportation of any
(a) Section 515.542(c) provides that
Cuban national, except a Cuban na-
specific licenses may be issued for
tional holding an unexpired immigrant
transactions incident to the receipt or
or non-immigrant visa or a returning
transmission of communications be-
resident of the United States, from
Cuba to the United States, unless oth- tween the United States and Cuba.
erwise licensed: Pursuant to § 515.542(c), licenses may be
(1) Transactions incident to travel to, issued for payment to Cuba for full or
from, or within Cuba; partial payment of amounts due Cuba
(2) The transportation to Cuba of a as a result of the provision of tele-
vessel or aircraft; communications services provided such
(3) The transportation into the services and payments are approved by
United States of any vessel or aircraft the Federal Communications Commis-
which has been in Cuba since the effec- sion and are consistent with policy
tive date, regardless of registry; guidelines governing telecommuni-
(4) The provision of any services to a cations between the United States and
Cuban national, regardless of whether Cuba established to implement the
any consideration for such services is Cuban Democracy Act of 1992.
furnished by the Cuban national; (b) Section 515.545 provides, in part,
(5) The transportation or importation that licenses will be issued in appro-
of baggage or other property of a priate cases for transactions for travel
Cuban national; related to the transmission of informa-
(6) The transfer of funds or other tion. Pursuant to § 515.545, licenses may
property to any person where such be issued on a case-by-case basis for
transfer involves the provision of serv- travel transactions related to travel
ices to a Cuban national or the trans- for negotiation or performance of tele-
portation or importation of, or any communications agreements for serv-
transactions involving, property in ice between the United States and
which Cuba or any Cuban national has Cuba.
any interest, including baggage or [58 FR 45060, Aug. 26, 1993, as amended at 64
other such property; FR 25812, May 13, 1999]
(7) Any other transaction such as
payment of port fees and charges in § 515.419 [Reserved]
Cuba and payment for fuel, meals,
lodging; and § 515.420 Fully-hosted travel to Cuba.
(8) The receipt or acceptance of any (a) A person subject to the jurisdic-
gratuity, grant, or support in the form tion of the United States who is not

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Office of Foreign Assets Control, Treasury § 515.420

authorized to engage in travel-related traveler to avoid entering into travel-


transactions in which Cuba has an in- related transactions such as payments
terest will not be considered to violate for meals, lodging, transportation, bun-
the prohibitions of this part when a kering of vessels, visas, entry or exit
person not subject to the jurisdiction fees, and gratuities. If applicable, the
of the United States covers the cost of statement should state what party
all transactions related to the travel of hosted the travel and why. The state-
the person subject to the jurisdiction ment must provide a day-to-day ac-
of the United States (the ‘‘fully- count of financial transactions waived
hosted’’ traveler), provided that: or entered into on behalf of the trav-
(1) No person subject to the jurisdic- eler by the host, including but not lim-
tion of the United States has made any ited to visa fees, room and board, local
payments or transferred any property or international transportation costs,
or provided any service to Cuba or a and Cuban airport departure taxes. In
Cuban national in connection with the case of pleasure craft calling at
such fully-hosted travel or has prepaid Cuban marinas, the statement must
or reimbursed any person for travel ex- also address related refueling costs,
penses, except as authorized in para- mooring fees, club membership fees,
graph (b) of this section; and provisions, cruising permits, local land
(2) The travel is not aboard a direct transportation, and departure fees.
flight between the United States and Travelers fully hosted by a person or
Cuba authorized pursuant to § 515.572. persons not subject to the jurisdiction
(b) Travel will be considered fully of the United States must also provide
hosted notwithstanding a payment by an original signed statement from
a person subject to the jurisdiction of their sponsor or host, specific to that
the United States for transportation to traveler, confirming that the travel
and from Cuba, provided that the car- was fully hosted and the reasons for
rier furnishing the transportation is the travel.
not a Cuban national. Persons author-
NOTE TO PARAGRAPH (c): Travelers should
ized as travel service providers pursu- be aware that fully-hosted travelers are not
ant to § 515.572 may book passage on be- travelers whose travel-related transactions
half of fully-hosted travelers through are licensed pursuant to this part and there-
to Cuba, provided that such travel is fore such fully-hosted travelers may not en-
not on a direct flight from the United gage in the travel-related transactions set
States and that the carrier furnishing forth in § 515.560(c), including the purchase
the transportation is not a Cuban na- and importation of up to $100 of Cuban mer-
chandise for personal use. All documentation
tional.
described in paragraph (c) of this section is
(c) Unless otherwise authorized pur- subject to the recordkeeping requirements,
suant to this part, any person subject including the record retention period, in
to the jurisdiction of the United States § 501.601 of this chapter.
who has traveled to Cuba shall be pre-
(d) Persons planning to travel to
sumed to have engaged in travel-re-
Cuba may access the Office of Foreign
lated transactions prohibited by
Assets Control’s information resources
§ 515.201. This presumption may be re-
over the Internet at http://
butted by a statement signed by the
www.treas.gov/ofac, through the of-
traveler providing specific supporting
fice’s fax-on-demand service at 202/622–
documentation showing that no trans-
0077, or by calling the office’s Compli-
actions were engaged in by the traveler
ance Programs Division at 202/622–2490,
or on the traveler’s behalf by other per-
prior to their departure to familiarize
sons subject to U.S. jurisdiction or
themselves with the requirements for
showing that the traveler was fully
fully-hosted travel. Other inquiries
hosted by a third party not subject to
concerning travel-related transactions
the jurisdiction of the United States
should be addressed to the Licensing
and that payments made on the trav-
Division, Office of Foreign Assets Con-
eler’s behalf were not in exchange for
trol, U.S. Department of the Treasury,
services provided to Cuba or any na-
1500 Pennsylvania Avenue, NW.—
tional thereof. The statement should
Annex, Washington, DC 20220.
address the circumstances of the travel
and explain how it was possible for the [64 FR 25812, May 13, 1999]

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§ 515.502 31 CFR Ch. V (7–1–02 Edition)

Subpart E—Licenses, Authoriza- (c) This section does not authorize or


tions, and Statements of Li- license:
censing Policy (1) The entry of any judgment or of
any decree or order of similar or analo-
§ 515.502 Effect of subsequent license gous effect upon any judgment book,
or authorization. minute book, journal or otherwise, or
(a) No license or other authorization the docketing of any judgment in any
contained in this part or otherwise docket book, or the filing of any judg-
issued by or under the direction of the ment roll or the taking of any other
Secretary of the Treasury pursuant to similar or analogous action.
section 3(a) or 5(b) of the Trading With (2) Any payment or delivery out of a
the Enemy Act, as amended, or section blocked account based upon a judicial
620(a), Pub. L. 87–195, or Proclamation proceeding nor does it authorize the
3447, shall be deemed to authorize or enforcement or carrying out of any
validate any transaction effected prior judgment or decree or order of similar
to the issuance thereof, unless such li- or analogous effect with regard to any
cense or other authorization specifi- property in which a designated na-
cally so provides. tional has an interest.
(b) No regulation, ruling, instruction, (d) If a judicial proceeding relates to
or license authorizes a transaction pro- property in which there exists the in-
hibited under this part unless the regu- terest of any designated national other
lation, ruling, instruction, or license is than a person who would not have been
issued by the Treasury Department and a designated national except for his re-
specifically refers to this part. No regu- lationship to an occupied area, such
lation, ruling, instruction or license re- proceeding is authorized only if it is
ferring to this part shall be deemed to based upon a claim in which no person
authorize any transaction prohibited other than any of the following has had
by part 500 of this chapter unless the an interest since the ‘‘effective date’’:
regulation, ruling, instruction or li- (1) A citizen of the United States;
cense specifically refers to part 500. (2) A corporation organized under the
laws of the United States or any State,
§ 515.503 Exclusion from licenses and territory or possession thereof, or the
authorizations.
District of Columbia;
The Secretary of the Treasury re- (3) A natural person who is and has
serves the right to exclude from the op- been since the ‘‘effective date’’ a resi-
eration of any license or from the dent of the United States and who has
privileges therein conferred or to re- not been a specially designated na-
strict the applicability thereof with re- tional;
spect to particular persons, trans- (4) A legal representative (whether or
actions or property or classes thereof.
not appointed by a court of the United
Such action shall be binding upon all
States) or successor in interest by in-
persons receiving actual notice or con-
heritance, device, bequest, or operation
structive notice thereof.
of law, who falls within any of the cat-
§ 515.504 Certain judicial proceedings egories specified in paragraphs (a) (1),
with respect to property of des- (2), and (3) of this section but only to
ignated nationals. the same extent that their principals
(a) Subject to the limitations of or predecessors would be qualified by
paragraphs (b), (c) and (d) of this sec- such paragraphs.
tion judicial proceedings are author-
§ 515.505 Certain persons unblocked.
ized with respect to property in which
on or since the ‘‘effective date’’ there (a) The following persons are hereby
has existed the interest of a designated licensed as unblocked nationals.
national. (1) Any person resident in, or orga-
(b) A judicial proceeding is author- nized under the laws of a jurisdiction
ized by this section only if it is based in, the United States or the authorized
upon a cause of action which accrued trade territory who or which has never
prior to the ‘‘effective date’’. been a designated national;

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Office of Foreign Assets Control, Treasury § 515.509

(2) Any individual resident in the blocked account or subaccount under


United States who is not a specially any name or designation which differs
designated national; and from the name or designation of the
(3) Any corporation, partnership or specific blocked account or subaccount
association that would be a designated in which such securities were held.
national solely because of the interest (e) This section does not authorize
therein of an individual licensed in any payment or transfer from a
paragraph (a) or (b) of this section as blocked account in a domestic bank to
an unblocked national.
a blocked account held under any name
(b) Individual nationals of a des-
ignated country who have taken up or designation which differs from the
residence in the authorized trade terri- name or designation of the blocked ac-
tory may apply to the Office of Foreign count from which the payment or
Assets Control to be specifically li- transfer is made.
censed as unblocked nationals. NOTE TO § 515.508: Please refer to § 501.603 of
(c) The licensing of any person as an this chapter for mandatory reporting re-
unblocked national shall not suspend quirements regarding financial transfers.
the requirements of any section of this [32 FR 10846, July 25, 1967, as amended at 58
chapter relating to the maintenance or FR 47645, Sept. 10, 1993; 62 FR 45106, Aug. 25,
production of records. 1997]
[50 FR 27437, July 3, 1985, as amended at 54
FR 5234, Feb. 2, 1989] § 515.509 Entries in certain accounts
for normal service charges.
§§ 515.506–515.507 [Reserved]
(a) Any banking institution within
§ 515.508 Payments to blocked ac- the United States is hereby authorized
counts in domestic banks. to:
(a) Any payment or transfer of credit (1) Debit any blocked account with
to a blocked account in a domestic such banking institution (or with an-
bank in the name of any designated na- other office within the United States of
tional is hereby authorized providing such banking institution) in payment
such payment or transfer shall not be or reimbursement for normal service
made from any blocked account if such charges owed to such banking institu-
payment or transfer represents, di- tion by the owner of such blocked ac-
rectly or indirectly, a transfer of the count.
interest of a designated national to any (2) Make book entries against any
other country or person. foreign currency account maintained
(b) This section does not authorize: by it with a banking institution in a
(1) Any payment or transfer to any designated foreign country for the pur-
blocked account held in a name other pose of responding to debits to such ac-
than that of the designated national
count for normal service charges in
who is the ultimate beneficiary of such
connection therewith.
payment or transfer; or
(2) Any foreign exchange transaction (b) As used in this section, the term
including, but not by way of limita- normal service charge shall include
tion, any transfer of credit, or payment charges in payment or reimbursement
of an obligation, expressed in terms of for interest due; cable, telegraph, or
the currency of any foreign country. telephone charges; postage costs; cus-
(c) This section does not authorize tody fees; small adjustment charges to
any payment or transfer of credit com- correct bookkeeping errors; and, but
prising an integral part of a trans- not by way of limitation, minimum
action which cannot be effected with- balance charges, account carrying
out the subsequent issuance of a fur- charges, notary and protest fees, and
ther license. charges for reference books, photo-
(d) This section does not authorize stats, credit reports, transcripts of
the crediting of the proceeds of the sale statements, registered mail insurance,
of securities held in a blocked account stationery and supplies, check books,
or a subaccount thereof, or the income and other similar items.
derived from such securities to a

567

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§ 515.510 31 CFR Ch. V (7–1–02 Edition)

§ 515.510 Payments to the United nancial business within the United


States, States and political subdivi- States.
sions.
(a) The payment from any blocked § 515.513 Purchase and sale of certain
securities.
account to the United States or any
agency or instrumentality thereof or (a) The bona fide purchase and sale of
to any State, territory, district, coun- securities on a national securities ex-
ty, municipality or other political sub- change by banking institutions within
division in the United States, of cus- the United States for the account, and
toms duties, taxes, and fees payable pursuant to the authorization, of na-
thereto by the owner of such blocked tionals of a designated foreign country
account is hereby authorized. and the making and receipt of pay-
(b) This section also authorizes ments, transfers of credit, and trans-
transactions incident to the payment fers of such securities which are nec-
of customs duties, taxes, and fees from essary incidents of any such purchase
blocked accounts, such as the levying or sale are hereby authorized provided
of assessments, the creation and en- the following terms and conditions are
forcement of liens, and the sale of complied with:
blocked property in satisfaction of (1) In the case of the purchase of se-
liens for customs duties, taxes, and curities, the securities purchased shall
fees. be held in an account in a banking in-
stitution within the United States in
§ 515.511 Transactions by certain busi- the name of the national whose ac-
ness enterprises. count was debited to purchase such se-
(a) Except as provided in paragraphs curities; and
(b), (c) and (d) of this section any part- (2) In the case of the sale of securi-
nership, association, corporation or ties, the proceeds of the sale shall be
other organization which on the ‘‘ef- credited to an account in the name of
fective date’’ was actually engaged in a the national for whose account the sale
commercial, banking or financial busi- was made and in the banking institu-
ness within the United States and tion within the United States which
which is a national of a designated for- held the securities for such national.
eign country, is hereby authorized to (b) This section does not authorize
engage in all transactions ordinarily the crediting of the proceeds of the sale
incidental to the normal conduct of its of securities held in a blocked account
business activities within the United or a subaccount thereof, to a blocked
States. account or subaccount under any name
(b) This section does not authorize or designation which differs from the
any transaction which would require a name or designation of the specific
license if such organization were not a blocked account or subaccount in
national of a designated foreign coun- which such securities were held.
try. (c) Securities issued or guaranteed by
(c) This section does not authorize the Government of the United States
any transaction by a specially des- or any State, territory, district, coun-
ignated national. ty, municipality, or other political sub-
(d) Any organization engaging in division thereof (including agencies
business pursuant to this section shall and instrumentalities of the foregoing)
not engage in any transaction, pursu- need not be purchased or sold on a na-
ant to this section or any other license tional securities exchange, but pur-
or authorization contained in this part, chases or sales of such securities shall
which, directly or indirectly, substan- be made at market value and pursuant
tially diminishes or imperils the assets to all other terms and conditions pre-
of such organization or otherwise prej- scribed in this section.
udicially affects the financial position
of such organization. § 515.514 Payment of dividends and in-
(e) No dealings with regard to any ac- terest on and redemption and col-
count shall be evidence that any person lection of securities.
having an interest therein is actually (a) The payment to, and receipt by, a
engaged in commercial, banking or fi- banking institution within the United

568

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Office of Foreign Assets Control, Treasury § 515.517

States of funds or other property rep- § 515.515 Transfers of securities to


resenting dividends or interest on secu- blocked accounts in domestic
rities held by such banking institution banks.
in a blocked account is hereby author- (a) Transactions ordinarily incident
ized provided the funds or other prop- to the transfer of securities from a
erty are credited to or deposited in a blocked account in the name of any
blocked account in such banking insti- person to a blocked account in the
tution in the name of the national for same name in a domestic bank are
whose account the securities were held. hereby authorized provided such secu-
Notwithstanding § 515.202, this para- rities shall not be transferred from any
graph authorizes the foregoing trans- blocked account if such transfer rep-
actions although such securities are resents, directly or indirectly, a trans-
registered or inscribed in the name of fer of the interest of a designated na-
any designated national and although tional to any other country or person.
the national in whose name the securi- (b) This section does not authorize
ties are registered or inscribed may not the transfer of securities held in a
be the owner of such blocked account. blocked account or subaccount thereof
(b) The payment to, and receipt by, a to a blocked account or subaccount
banking institution within the United under any name or designation which
States of funds payable in respect of se- differs from the name or designation of
the specific blocked account or sub-
curities (including coupons) presented
account in which such securities were
by such banking institution to the
held.
proper paying agents within the United
States for redemption or collection for [32 FR 10847, July 25, 1967]
the account and pursuant to the au-
thorization of nationals of a designated § 515.516 Voting and soliciting of prox-
ies on securities.
country is hereby authorized provided
the proceeds of the redemption or col- Notwithstanding § 515.202, the voting
lection are credited to a blocked ac- and the soliciting of proxies or other
count in such banking institution in authorizations is authorized with re-
the name of the national for whose ac- spect to the voting of securities issued
count the redemption or collection was by a corporation organized under the
made. laws of the United States or of any
(c) The performance of such other State, territory, or district thereof, in
acts, and the effecting of such other which a designated national has any
interest.
transactions, as may be necessarily in-
cident to any of the foregoing, are also § 515.517 Access to safe deposit boxes
hereby authorized. under certain conditions.
(d) This section does not authorize
(a) Access to any safe deposit box
the crediting of the proceeds of the re-
leased to a designated national or con-
demption or collection of securities
taining property in which any des-
(including coupons) held in a blocked ignated national has an interest, and
account or a subaccount thereof, or the the deposit therein or removal there-
income derived from such securities to from of any property is hereby author-
a blocked account or subaccount under ized, provided the following terms and
any name or designation which differs conditions are complied with:
from the name or designation of the (1) Access shall be permitted only in
specific blocked account or subaccount the presence of an authorized rep-
in which such securities were held. resentative of the lessor of such box;
(e) This section does not authorize and
any issuer or other obligor, with re- (2) In the event that any property in
spect to a security, who is a designated which any designated national has any
national, to make any payment, trans- interest is to be removed from such
fer or withdrawal. box, access shall be permitted only in

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§ 515.518 31 CFR Ch. V (7–1–02 Edition)

the presence of an authorized rep- such citizens are within any foreign
resentative of a banking institution country in the course of their employ-
within the United States, which may ment by the Government of the United
be the lessor of such box, which shall States.
receive such property into its custody (b) Banking institutions within the
immediately upon removal from such United States are also hereby author-
box and which shall hold the same in a ized to make all payments, transfers
blocked account under an appropriate and withdrawals from accounts in the
designation indicating the interest name of members of the armed forces
therein of designated nationals. of the United States and of citizens of
(b) The terms and conditions set the United States accompanying such
forth in paragraph (a) of this section armed forces in the course of their em-
shall not apply to access granted to a ployment by any organization acting
representative of the Office of Alien on behalf of the Government of the
Property pursuant to any rule, regula- United States while such persons are
tion or order of such Office. within any foreign country.
(c) This section is deemed to apply to
§ 515.518 [Reserved] the accounts of members of the armed
forces of the United States and of citi-
§ 515.519 Limited payments from ac- zens of the United States accom-
counts of United States citizens
abroad. panying such armed forces in the
course of their employment by the
(a) Payments and transfers of credit Government of the United States or by
from blocked accounts for expenditures any organization acting on its behalf
within the United States or the author- even though they are captured or re-
ized trade territory of any citizens of ported missing.
the United States who are within any
foreign country are hereby authorized § 515.521 U.S. assets of certain Cuban
provided the following terms and con- corporations.
ditions are complied with: (a) Specific licenses may be issued
(1) Such payments and transfers shall unblocking the net pro rata shares of
be made only from blocked accounts in individuals who are permanent resi-
the name, or in which the beneficial in- dents of the United States or the au-
terest is held by, such citizen or his thorized trade territory, and who are
family; and not specially designated nationals, in
(2) The total of all such payments U.S.-located assets of corporations
and transfers made under this section formed under the laws of Cuba, after
shall not exceed $1,000 in any one cal- deducting the total debt due creditors
endar month for any such citizen or his for claims that accrued prior to the ef-
family. fective date, in cases where all of the
(b) This section does not authorize following conditions are met:
any remittance to a designated foreign (1) The assets were owned by, or ac-
country or, any payment, transfer, or crued to, the corporation before the ef-
withdrawal which could not be effected fective date of the regulations;
without a license by a person within (2) The corporation did not carry on
the United States who is not a national substantial business in Cuba under the
of a designated foreign country. management or control of the appli-
[28 FR 6974, July 9, 1963, as amended at 49 FR cant(s) after the effective date;
27144, July 2, 1984] (3) In cases where the blocked assets
purportedly have been nationalized by
§ 515.520 Payments from accounts of Cuba, compensation has not been paid
United States citizens in employ of to the applicant(s).
United States in foreign countries (b) Applications for specific licenses
and certain other persons. under this section must include all of
(a) Banking institutions within the the following information:
United States are hereby authorized to (1) A detailed description of the cor-
make all payments, transfers and with- poration, its by-laws, activities, dis-
drawals from accounts in the name of tribution of shares, and its current sta-
citizens of the United States while tus;

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Office of Foreign Assets Control, Treasury § 515.523

(2) Proof of the permanent residence (2) Proof of death of the designated
of the applicant(s) in the United States national to be established by a death
or the authorized trade territory; certificate;
(3) A list of all officers, directors and (3) Proof of heirship, to be estab-
shareholders of the corporation, giving lished by a copy of the decedent’s duly
the citizenship and the residence of executed will certified by a probate
each person as of the date of the appli- court, a court decree determining the
cation; heirs, or, failing the availability of
(4) A detailed description of all of the such documents, copies of certificates
assets of the corporation, wherever lo- establishing the relationship of the
cated, including a statement of all heir to the deceased, e.g., birth or mar-
known encumbrances or claims against riage certificates;
them; and
(4) A description of the assets in-
(5) Detailed information regarding
the status of all debts and other obliga- volved, including interest due on
tions of the corporation, specifying the blocked funds since April 1, 1979, the
citizenship and residence of each cred- name and address of the institution in
itor on the effective date and on the which the assets are held, the account
date of the application. or safe deposit box number, the name
in which the assets are held and a
[50 FR 33720, Aug. 21, 1985. Redesignated at 64 statement of all known encumbrances
FR 25813, May 13, 1999] or claims against them; and
§ 515.522 U.S. assets of certain Cuban (c) Any document provided pursuant
decedents. to this section that is not written in
the English language must be accom-
(a) Specific licenses may be issued
panied by a translation into English, as
unblocking the net pro rata shares of
well as a certification by the translator
certain heirs of designated nationals in
that he is not an interested party to
U.S.-located estate assets, after de-
the proceeding, is qualified to make
ducting the total debt due creditors for
the translation, and has made an accu-
claims that accrued prior to the effec-
rate translation of the document in
tive date, in cases where all of the fol-
lowing conditions are met: question.
(1) The applicant is a permanent resi- [54 FR 5235, Feb. 2, 1989. Redesignated at 64
dent of the United States or the au- FR 25813, May 13, 1999]
thorized trade territory and is not a
specially designated national; and § 515.523 Transactions incident to the
(2) No interest on the part of a des- administration of decedents’ es-
ignated national not licensed as an tates.
unblocked national pursuant to (a) The following transactions are au-
§ 515.505 exists in that portion of the as- thorized in connection with the admin-
sets to which the applicant is entitled. istration of the assets in the United
(b) Applications for specific licenses States of any blocked estate of a dece-
under this section must include all of dent:
the following information: (1) The appointment and qualifica-
(1) Proof of permanent residence in tion of a personal representative;
the United States or the authorized (2) The collection and preservation of
trade territory, to be established by such assets by such personal represent-
the submission of documentation ative and the payment of all costs, fees
issued by relevant government authori- and charges in connection therewith;
ties that must include at least two of
and
the following documents: (i) passport;
(3) The payment by such personal
(ii) voter registration card; (iii) perma-
representative of funeral expenses and
nent resident alien card; or (iv) na-
tional identity card. Other documents expenses of the last illness.
tending to show residency, such as in- (4) Any transfer of title pursuant to a
come tax returns, may also be sub- valid testamentary disposition.
mitted in support of government docu- This paragraph does not authorize any
mentation, but will not suffice in and unblocking or distribution of estate as-
of themselves; sets to a designated national.

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§ 515.524 31 CFR Ch. V (7–1–02 Edition)

(b) In addition to the authorization (3) Any designated national to take


contained in paragraph (a) of this sec- distribution of any property as the
tion, all other transactions incident to trustee of any testamentary trust or as
the administration of assets situated in the guardian of an estate of a minor or
the United States of any blocked estate of an incompetent; or
of a decedent are authorized if: (4) Any transaction which could not
(1) The decedent was not a national be effected if no designated national
of a designated foreign country at the had any interest in such estate.
time of his death; (f) Any payment or distribution au-
(2) The decedent was a citizen of the thorized by this section may be depos-
United States and a national of a des- ited in a blocked account in a domestic
ignated foreign country at the time of bank or with a public officer, agency,
his death solely by reason of his pres- or instrumentality designated by the
ence in a designated foreign country as court having jurisdiction of the estate
a result of his employment by, or serv- in one of the ways prescribed in para-
ice with the United States Govern- graph (c) (1), (2) or (3) of this section,
ment; or but this section does not authorize any
(3) The assets are unblocked under a other transaction directly or indirectly
specific license issued pursuant to at the request, or upon the instructions
§ 515.522. of any designated national.
(c) Any property or interest therein
[28 FR 6974, July 9, 1963, as amended at 54 FR
distributed pursuant to this section to 5234, Feb. 2, 1989; 64 FR 25813, May 13, 1999]
a designated national shall be regarded
for the purpose of this chapter as prop- § 515.524 Payment from, and trans-
erty in which such national has an in- actions in the administration of cer-
terest and shall accordingly be subject tain trusts and estates.
to all the pertinent sections of this (a) Any bank or trust company incor-
chapter. Any payment or distribution porated under the laws of the United
of any funds, securities or other choses States, or of any State, territory, pos-
in action to a designated national shall session, or district of the United
be made by deposit in a blocked ac- States, or any private bank subject to
count in a domestic bank or with a supervision and examination under the
public officer, agency, or instrumen- banking laws of any State of the
tality designated by a court having ju- United States, acting as trustee of a
risdiction of the estate. Any such de- trust created by gift, donation or be-
posit shall be made in one of the fol- quest and administered in the United
lowing ways:
States, or as legal representative of an
(1) In the name of the national who is estate of an infant or incompetent ad-
the ultimate beneficiary thereof; ministered in the United States, in
(2) In the name of a person who is not which trust or estate one or more per-
a national of a designated foreign coun- sons who are designated nationals have
try in trust for the national who is the an interest, beneficial or otherwise, or
ultimate beneficiary; or are co-trustees or co-representatives, is
(3) Under some other designation hereby authorized to engage in the fol-
which clearly shows the interest there- lowing transactions:
in of such national. (1) Payments of distributive shares of
(d) Any distribution of property au- principal or income to all persons le-
thorized pursuant to this section may gally entitled thereto upon the condi-
be made to a trustee of any testa- tion prescribed in paragraph (b) of this
mentary trust or to the guardian of an section.
estate of a minor or of an incompetent. (2) Other transactions arising in the
(e) This section does not authorize: administration of such trust or estate
(1) Any designated national to act as which might be engaged in if no na-
personal representative or co-rep- tional of a designated foreign country
resentative of any estate; were a beneficiary, co-trustee or co-
(2) Any designated national to rep- representative of such trust or estate
resent, directly or indirectly, any per- upon the condition prescribed in para-
son who has an interest in an estate; graph (b) of this section.

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Office of Foreign Assets Control, Treasury § 515.526

(b) Any payment or distribution of mentary disposition or intestate suc-


any funds, securities or other choses in cession.
action to a national of a designated (b) Except to the extent authorized
foreign country under this section by § 515.522, § 515.523 or by any other li-
shall be made by deposit in a blocked cense or authorization contained in or
account in a domestic bank in the issued pursuant to this part no transfer
name of the national who is the ulti- to any person by intestate succession
mate beneficiary thereof. and no transfer to any person as ad-
(c) Any payment or distribution into ministrator, executor, or other fidu-
a blocked account in a domestic bank ciary by reason of any testamentary
in the name of any such national of a disposition, and no transfer to any per-
designated foreign country who is the son as administrator, executor, or fidu-
ultimate beneficiary of and legally en- ciary by reason of judicial appointment
titled to any such payment or distribu- or approval in connection with any tes-
tion is authorized by this section, but tamentary disposition or intestate suc-
this section does not authorize such cession shall be deemed to terminate
trustee or legal representative to en- the interest of the decedent in the
gage in any other transaction at the property transferred if the decedent
request, or upon the instructions, of was a designated national.
any beneficiary, co-trustee or co-rep- [28 FR 6974, July 9, 1963, as amended at 54 FR
resentative of such trust or estate or 5234, Feb. 2, 1989; 64 FR 25813, May 13, 1999]
other person who is a national of any
designated foreign country. § 515.526 Transactions involving
(d) The application of this section to blocked life insurance policies.
trusts is limited to trusts established (a) The following transactions are
by gift, donation, or bequest from indi- hereby authorized:
viduals or entities to benefit specific (1) The payment of premiums and in-
heirs, charitable causes, and similar terest on policy loans with respect to
beneficiaries. This section does not any blocked life insurance policy;
apply to trusts established for business (2) The issuance, servicing or transfer
or commercial purposes, such as sink- of any blocked life insurance policy in
ing funds established by an issuer of se- which the only blocked interest is that
curities in order to secure payment of of one or more of the following:
interest or principal due on such secu- (i) A member of the armed forces of
rities. the United States or a person accom-
panying such forces (including per-
[28 FR 6974, July 9, 1963, as amended at 49 FR
27144, July 2, 1984; 54 FR 5234, Feb. 2, 1989]
sonnel of the American Red Cross, and
similar organizations);
§ 515.525 Certain transfers by oper- (ii) An officer or employee of the
ation of law. United States; or
(iii) A citizen of the United States
(a) The following are hereby author- resident in a designated foreign coun-
ized: try; and
(1) Any transfer of any dower, cur- (3) The issuance, servicing or transfer
tesy, community property, or other in- of any blocked life insurance policy in
terest of any nature whatsoever, pro- which the only blocked interest (other
vided that such transfer arises solely than that of a person specified in para-
as a consequence of the existence or graph (a)(2) of this section) is that of a
change of marital status; beneficiary.
(2) Any transfer to any person by in- (b) Paragraph (a) of this section does
testate succession; not authorize:
(3) Any transfer to any person as ad- (1) Any payment to the insurer from
ministrator, executor, or other fidu- any blocked account except a blocked
ciary by reason of any testamentary account of the insured or beneficiary,
disposition; and or
(4) Any transfer to any person as ad- (2) Any payment by the insurer to a
ministrator, executor, or fiduciary by national of a designated foreign coun-
reason of judicial appointment or ap- try unless payment is made by deposit
proval in connection with any testa- in a blocked account in a domestic

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§ 515.527 31 CFR Ch. V (7–1–02 Edition)

bank in the name of the national who § 515.527 Certain transactions with re-
is the ultimate beneficiary thereof. spect to United States intellectual
(c) The application, in accordance property.
with the provisions of the policy or the (a)(1) Transactions related to the reg-
established practice of the insurer of istration and renewal in the United
the dividends, cash surrender value, or States Patent and Trademark Office or
loan value, of any blocked life insur- the United States Copyright Office of
ance policy is also hereby authorized patents, trademarks, and copyrights in
for the purpose of: which the Government of Cuba or a
(1) Paying premiums; Cuban national has an interest are au-
(2) Paying policy loans and interest thorized.
thereon; (2) No transaction or payment is au-
(3) Establishing paid-up insurance; or thorized or approved pursuant to para-
graph (a)(1) of this section with respect
(4) Accumulating such dividends or
to a mark, trade name, or commercial
values to the credit of the policy on the
name that is the same as or substan-
books of the insurer. tially similar to a mark, trade name,
(d) As used in this section: or commercial name that was used in
(1) The term blocked life insurance pol- connection with a business or assets
icy shall mean any life insurance policy that were confiscated, as that term is
or annuity contract, or contract sup- defined in § 515.336, unless the original
plementary thereto, in which there is a owner of the mark, trade name, or
blocked interest. commercial name, or the bona fide suc-
(2) Any interest of a national of a cessor–in–interest has expressly con-
designated foreign country shall be sented.
deemed to be a ‘‘blocked interest.’’ (b) This section authorizes the pay-
(3) The term servicing shall mean the ment from blocked accounts or other-
following transactions with respect to wise of fees currently due to the United
any blocked life insurance policy: States Government in connection with
(i) The payment of premiums, the any transaction authorized in para-
payment of loan interest, and the re- graph (a) of this section.
payment of policy loans; (c) This section further authorizes
(ii) The effecting by a life insurance the payment from blocked accounts or
otherwise of the reasonable and cus-
company or other insurer of loans to
tomary fees and charges currently due
an insured;
to attorneys or representatives within
(iii) The effecting on behalf of an in- the United States in connection with
sured or surrenders, conversions, modi- the transactions authorized in para-
fications, and reinstatements; and graph (a) of this section.
(iv) The exercise or election by an in-
sured of nonforfeiture options, optional [60 FR 54196, Oct. 20, 1995, as amended at 64
FR 25813, May 13, 1999]
modes of settlement, optional disposi-
tion of dividends, and other policy op- § 515.528 Certain transactions with re-
tions and privileges not involving pay- spect to blocked foreign intellectual
ment by the insurer. property.
(4) The term transfer shall mean the (a) The following transactions by any
change of beneficiary, or the assign- person who is not a designated national
ment or pledge of the interest of an in- are hereby authorized:
sured in any blocked life insurance pol- (1) The filing and prosecution of any
icy subsequent to the issuance thereof. application for a blocked foreign pat-
(e) This section does not authorize ent, trademark or copyright, or for the
any transaction with respect to any renewal thereof;
blocked life insurance policy issued by (2) The receipt of any blocked foreign
a life insurance company or other in- patent, trademark or copyright;
surer which is a national of a des- (3) The filing and prosecution of op-
ignated foreign country or which is not position or infringement proceedings
doing business or effecting insurance in with respect to any blocked foreign
the United States. patent, trademark, or copyright, and

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Office of Foreign Assets Control, Treasury § 515.531

the prosecution of a defense to any § 515.530 Exportation of powers of at-


such proceedings; torney or instructions relating to
(4) The payment of fees currently due certain types of transactions.
to the government of any foreign coun- (a) The exportation to any foreign
try, either directly or through an at- country of powers of attorney or other
torney or representative, in connection instruments executed or issued by any
with any of the transactions author- person within the United States who is
ized by paragraphs (a) (1), (2), and (3) of not a national of a designated foreign
this section or for the maintenance of country, which are limited to author-
any blocked foreign patent, trademark izations or instructions to effect trans-
or copyright; and actions incident to the following, are
(5) The payment of reasonable and hereby authorized upon the condition
customary fees currently due to attor- prescribed in paragraph (b) of this sec-
tion:
neys or representatives in any foreign
(1) The representation of the interest
country incurred in connection with
of such person in a decedent’s estate
any of the transactions authorized by which is being administered in a des-
paragraphs (a) (1), (2), (3), or (4) of this ignated foreign country and the collec-
section. tion of the distributive share of such
(b) Payments effected pursuant to person in such estate;
the terms of paragraphs (a) (4) and (5) (2) The maintenance, preservation,
of this section may not be made from supervision or management of any
any blocked account. property located in a designated for-
(c) As used in this section the term eign country in which such person has
blocked foreign patent, trademark, or an interest; and
copyright shall mean any patent, petty (3) The conveyance, transfer, release,
patent, design patent, trademark or sale or other disposition of any prop-
copyright issued by any foreign coun- erty specified in paragraph (a)(1) of
try in which a designated foreign coun- this section or any real estate or tan-
try or national thereof has an interest, gible personal property if the value
including any patent, petty patent, de- thereof does not exceed the sum of
sign patent, trademark, or copyright $5,000 or its equivalent in foreign cur-
issued by a designated foreign country. rency.
(b) No instrument which authorizes
[28 FR 6974, July 9, 1963, as amended at 60 FR the conveyance, transfer, release, sale
54196, Oct. 20, 1995] or other disposition of any property
may be exported under this section un-
§ 515.529 Powers of attorney. less it contains an express stipulation
(a) No power of attorney, whether that such authority may not be exer-
granted before or after the ‘‘effective cised if the value of such property ex-
date’’ shall be invalid by reason of any ceeds the sum of $5,000 or the equiva-
of the provisions of this part with re- lent thereof in foreign currency.
spect to any transaction licensed by or (c) As used in this section, the term
pursuant to the provisions of this part. tangible personal property shall not in-
clude cash, bullion, deposits, credits,
(b) This section does not authorize
securities, patents, trademarks, or
any transaction pursuant to a power of
copyrights.
attorney if such transaction is prohib-
ited by § 515.201 and is not otherwise li- § 515.531 Payment of certain checks
censed or authorized by or pursuant to and drafts.
this part. (a) Any banking institution within
(c) This section does not authorize the United States is hereby authorized
the creation of any power of attorney to make payments from blocked ac-
in favor of any person outside of the counts with such banking institution:
United States or the exportation from (1) Of checks and drafts drawn or
the United States of any power of at- issued prior to the ‘‘effective date’’ pro-
torney. vided:

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§ 515.532 31 CFR Ch. V (7–1–02 Edition)

(i) The amount involved in any one U.S.-origin goods, wares, and merchan-
payment, acceptance, or debit does not dise from a third country, to any per-
exceed $500; or son within Cuba are hereby authorized,
(ii) The check or draft was within the provided the following terms and con-
United States in process of collection ditions are complied with:
by a domestic bank on or prior to the (1) The exportation or reexportation
‘‘effective date.’’ is licensed or otherwise authorized by
(2) [Reserved] the Department of Commerce under
(b) This section does not authorize the provisions of the Export Adminis-
any payment to a designated foreign tration Act of 1979, as amended (50
country or any designated national U.S.C. app. 2401–2420) (see the Export
thereof except payments into a blocked Administration Regulations, 15 CFR
account in a domestic bank, unless 730–774); and
such designated national is otherwise (2) Only the following payment or fi-
licensed to receive such payment.
nancing terms may be used:
(c) The authorization contained in
(i) Payment of cash in advance;
this section shall expire at the close of
business on August 8, 1963. (ii) For authorized sales of agricul-
tural items, financing by a banking in-
§ 515.532 Completion of certain securi- stitution located in a third country
ties transactions. provided the banking institution is not
(a) Banking institutions within the a designated national, United States
United States are hereby authorized to citizen, United States permanent resi-
complete, on or before July 12, 1963 dent alien, or an entity organized
purchases and sales made prior to the under the laws of the United States or
‘‘effective date’’ of securities purchased any jurisdiction within the United
or sold for the account of a designated States (including foreign branches).
foreign country or any designated na- Such financing may be confirmed or
tional thereof provided the following advised by a United States banking in-
terms and conditions are complied stitution; or
with, respectively: (iii) For all other authorized sales, fi-
(1) The proceeds of such sale are cred- nancing by a banking institution lo-
ited to a blocked account in a banking cated in a third country provided the
institution in the name of the person banking institution is not a designated
for whose account the sale was made; national or a person subject to the ju-
and risdiction of the United States. Such fi-
(2) The securities so purchased are nancing may be confirmed or advised
held in a blocked account in a banking by a United States banking institution.
institution in the name of the person (b) This section does not authorize
for whose account the purchase was any exportation under General License
made. SHIP STORES, 15 CFR 771.9, to any
(b) This section does not authorize vessel carrying goods or passengers to
the crediting of the proceeds of the sale or from Cuba or carrying goods in
of securities held in a blocked account which Cuba or a Cuban national has an
or a subaccount thereof, to a blocked interest.
account or subaccount under any name (c) This section does not authorize:
or designation which differs from the (1) The financing of any transaction
name or designation of the specific from any blocked account;
blocked account or subaccount in
(2) Any transaction involving, di-
which such securities were held.
rectly or indirectly, property in which
§ 515.533 Transactions incident to ex- any designated national, other than a
portations from the United States person located in the country to which
and reexportations of U.S.-origin the exportation is consigned, has an in-
items to Cuba. terest, or has had an interest since the
(a) All transactions ordinarily inci- ‘‘effective date.’’
dent to the exportation of goods, (d) This section does not authorize
wares, and merchandise from the any exportation under License Excep-
United States, or the reexportation of tion GFT, 15 CFR 740.12, except gift

576

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Office of Foreign Assets Control, Treasury § 515.536

parcels that contain only food, vita- (1) Any exchange of securities unless
mins, seeds, medicines, medical sup- the new securities and other proceeds,
plies and devices, hospital supplies and if any, received are deposited in the
equipment, equipment for the handi- blocked account in which the original
capped, clothing, personal hygiene securities were held immediately prior
items, veterinary medicines and sup- to the exchange.
plies, fishing equipment and supplies, (2) Any exchange of securities reg-
soap–making equipment, or certain istered in the name of any designated
radio equipment and batteries for such national, unless the new securities re-
equipment, as specifically set forth in ceived are registered in the same name
15 CFR 740.12, and that otherwise com- in which the securities exchanged were
ply with the requirements of that sec- registered prior to the exchange.
tion. (3) Any exchange of securities issued
(e) Specific licenses may be issued on by a person engaged in the business of
a case-by-case basis authorizing the offering, buying, selling, or otherwise
travel-related transactions set forth in dealing, or trading in securities, or evi-
§ 515.560(c) and other transactions that dences thereof, issued by another per-
are directly incident to the marketing, son.
sales negotiation, accompanied deliv- (4) Any transaction with respect to
ery, or servicing of exports or reexports any security by an issuer or other obli-
that are consistent with the export or gor who is a designated national.
reexport licensing policy of the Depart-
ment of Commerce. § 515.536 Certain transactions with re-
NOTE TO § 515.533: For the waiver of the pro- spect to merchandise affected by
hibition contained in § 515.207 on certain ves- § 515.204.
sel transactions for vessels transporting (a) With respect to merchandise the
shipments of goods, wares, or merchandise importation of which is prohibited by
between the United States and Cuba pursu-
ant to this section, see § 515.550.
§ 515.204, all Customs transactions are
authorized except the following:
[28 FR 6974, July 9, 1963, as amended at 57 FR (1) Entry for consumption (including
15216, Apr. 24, 1992; 59 FR 44885, Aug. 30, 1994;
any appraisement entry, any entry of
64 FR 25813, May 13, 1999; 66 FR 36687, July 12,
2001] goods imported in the mails, regardless
of value, and any other informal en-
§ 515.535 Exchange of certain securi- tries);
ties. (2) Entry for immediate exportation;
(a) Subject to the limitations and (3) Entry for transportation and ex-
conditions of paragraph (b) of this sec- portation;
tion and notwithstanding § 515.202, any (4) Withdrawal from warehouse;
banking institution within the United (5) Transfer or withdrawal from a for-
States is authorized to engage in the eign-trade zone; or
following transactions with respect to (6) Manipulation or manufacture in a
securities listed on a national securi- warehouse or in a foreign-trade zone.
ties exchange, including the with- (b) Paragraph (a) of this section is in-
drawal of such securities from blocked tended solely to allow certain re-
accounts: stricted disposition of merchandise
(1) Exchange of certificates neces- which is imported without proper au-
sitated by reason of changes in cor- thorization. Paragraph (a) of this sec-
porate name, par value or capitaliza- tion does not authorize the purchase or
tion, importation of any merchandise.
(2) Exchanges of temporary for per- (c) The purchase outside the United
manent certificates, States for importation into the United
(3) Exchanges or deposits under plans States of nickel-bearing materials pre-
of reorganization, sumptively subject to § 515.204 and the
(4) Exchanges under refunding plans, importation of such merchandise into
or the United States (including trans-
(5) Exchanges pursuant to conversion actions listed in paragraph (a) of this
privileges accruing to securities held. section) are authorized if there is pre-
(b) This section does not authorize sented to the collector of customs in
the following transactions: connection with such importation the

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§ 515.540 31 CFR Ch. V (7–1–02 Edition)

original of an appropriate certificate of § 515.543 Proof of origin.


origin as defined in paragraph (d) of Specific licenses for importation of
this section and provided that the mer- goods of Cuban origin are generally not
chandise was shipped to the United issued unless the applicant submits
States directly, or on a through bill of satisfactory documentary proof of the
lading, from the country issuing the location of the goods outside Cuba
appropriate certificate of origin. prior to July 8, 1963 and of the absence
(d) A certificate of origin is appro- of any Cuban interest in the goods at
priate for the purposes of this section all times on or since that date. Since
only if the type of document which would con-
(1) It is a certificate of origin the stitute satisfactory proof varies de-
availability of which for Cuban Assets pending upon the facts of the par-
Control purposes has been announced ticular case, it is not possible to state
in the FEDERAL REGISTER by the Office in advance the type of documents re-
of Foreign Assets Control; and quired. However, it has been found that
(2) It bears a statement by the affidavits, statements, invoices, and
issuing agency referring to the Cuban other documents prepared by manufac-
Assets Control Regulations or stating turers, processors, sellers or shippers
that the certificate has been issued cannot be relied on and are therefore
under procedures agreed upon with the not by themselves accepted by the Of-
U.S. Government. fice of Foreign Assets Control as satis-
[30 FR 15371, Dec. 14, 1965, as amended at 47 factory proof of origin. Independent
FR 4254, Jan. 29, 1982; 50 FR 5753, Feb. 12, corroborating documentary evidence,
1985; 54 FR 5234, Feb. 2, 1989] such as insurance documents, bills of
lading, etc., may be accepted as satis-
§ 515.540 [Reserved] factory proof.
[39 FR 25317, July 10, 1974]
§ 515.542 Telecommunications, infor-
mation, and informational mate-
rials. § 515.544 Gifts of Cuban origin goods.
(a) Except as stated in paragraph (b)
(a) All transactions of common car-
of this section, specific licenses are not
riers incident to the receipt or trans-
issued for the importation of Cuban-or-
mission of mail between the United
igin goods sent as gifts to persons in
States and Cuba are hereby authorized.
the United States or acquired abroad
(b) Except as provided in paragraph as gifts by persons entering the United
(c) of this section, all transactions inci- States. However, licenses are issued
dent to the use of cables, satellite upon request for the return of such
channels, radio signals, or other means goods to the donors in countries other
of telecommunications for the provi- than Cuba.
sion of telecommunications services (b) Specific licenses are issued for the
between Cuba and the United States, importation directly from Cuba:
including telephone, telegraph and (1) Of goods which are claimed by the
similar services, and the transmission importer to have been sent as a bona
of radio and television broadcasts and fide gift or
news wire feeds between Cuba and the (2) Of goods which are imported by a
United States, are authorized. person entering the U.S., which are
(c) Full or partial payments owed to claimed to have been acquired in Cuba
Cuba as a result of telecommunications as a bona fide gift, subject to the condi-
services authorized in paragraph (b) of tions that:
this section are prohibited unless au- (i) The goods are of small value, and
thorized pursuant to specific licenses, (ii) There is no reason to believe that
which will be issued on a case-by-case there is, or has been since July 8, 1963,
basis provided such payments are de- any direct or indirect financial or com-
termined to be consistent with the pub- mercial benefit to Cuba or nationals
lic interest and the foreign policy of thereof from the importation.
the United States.
[39 FR 25317, July 10, 1974; 39 FR 28434, Aug.
[45 FR 58843, Sept. 5, 1980, as amended at 60 7, 1974, as amended at 49 FR 27144, July 2,
FR 39256, Aug. 2, 1995] 1984]

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Office of Foreign Assets Control, Treasury § 515.551

§ 515.545 Transactions related to infor- government-owned United States air-


mation and informational mate- craft.
rials.
[39 FR 25318, July 10, 1974, as amended at 49
(a) Except as provided in § 515.542(c), FR 27144, July 2, 1984]
all financial and other transactions di-
rectly incident to the importation or § 515.549 Bank accounts and other
exportation of information or informa- property of non-Cuban citizens who
tional materials are authorized. were in Cuba on or after July 8,
(b) Transactions relating to the dis- 1963.
semination of informational materials (a) Citizens of foreign countries. Spe-
are authorized, including remittance of cific licenses are issued unblocking the
royalties paid for informational mate- accounts and other property of non-
rials that are reproduced, translated, Cuban citizens who have left Cuba, pro-
subtitled, or dubbed. This section does vided that they submit evidence satis-
not authorize the remittance of royal- factorily demonstrating that they have
ties or other payments relating to established residence in a foreign coun-
works not yet in being, or for mar- try in the authorized trade territory.
keting and business consulting serv- (b) Decedents who died in Cuba on or
ices, or artistic or other substantive al- after July 8, 1963. Specific licenses are
teration or enhancements to informa- issued authorizing the administration
tional materials, as provided in of the estates of non-Cuban decedents
§ 515.206(a)(3). who died in Cuba, provided that any
(c) Specific licenses may be issued on distribution to a blocked national of
a case–by–case basis authorizing the Cuba is made by deposit in a blocked
travel–related transactions set forth in account in a domestic bank in the
§ 515.560(c) for purposes related to the name of the blocked national.
exportation, importation, or trans-
mission of information or informa- [39 FR 25318, July 10, 1974]
tional materials as defined in § 515.332.
§ 515.550 Certain vessel transactions
[54 FR 5234, Feb. 2, 1989, as amended at 60 FR authorized.
39257, Aug. 2, 1995; 64 FR 25813, May 13, 1999]
Unless a vessel has otherwise en-
§ 515.546 Accounts of Cuban sole pro- gaged in transactions that would pro-
prietorships. hibit entry pursuant to § 515.207,
Specific licenses are issued § 515.207 shall not apply to a vessel that
unblocking sole proprietorships estab- is:
lished under the laws of Cuba if the (a) Engaging in trade with Cuba au-
proprietor has emigrated from Cuba thorized by licenses issued pursuant to
and established residence in the United § 515.533 or § 515.559; or
States or a country in the authorized (b) Engaging in trade with Cuba that
trade territory. is exempt from the prohibitions of this
part (see § 515.206).
[39 FR 25319, July 10, 1974. Redesignated at 64
FR 25813, May 13, 1999] [64 FR 25813, May 13, 1999]

§ 515.547 Research samples. § 515.551 Joint bank accounts.


Specific licenses are issued for impor- (a) Specific licenses are issued
tation of Cuban-origin commodities for unblocking a portion of or all of a joint
bona-fide research purposes in sample bank account blocked by reason of the
quantities only. fact that one or more of the persons in
[39 FR 25318, July 10, 1974] whose names the account is held is a
blocked national, where a non-blocked
§ 515.548 Services rendered by Cuba to applicant claims beneficial ownership,
United States aircraft. as follows:
Specific licenses are issued for pay- (1) Joint bank account, without survi-
ment to Cuba of charges for services vorship provisions. Specific licenses are
rendered by Cuba in connection with issued unblocking only that amount
overflights of Cuba or emergency land- with respect to which the applicant is
ings in Cuba, of private, commercial or able to prove beneficial ownership by

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§ 515.552 31 CFR Ch. V (7–1–02 Edition)

documentary evidence independent of (1) Proof of permanent residence in


his assertions of interest. the United States or the authorized
(2) Joint bank account, with survivor- trade territory, to be established by
ship provisions. Specific licenses are the submission of documentation
issued unblocking an amount equiva- issued by relevant government authori-
lent to that portion of the total ties that must include at least two of
amount to which the applicant would the following documents:
be entitled if the total were divided (i) Passport;
evenly among the persons in whose (ii) Voter registration card;
names the account is held (e.g. 50 per- (iii) Permanent resident alien card;
cent where there are two names; 331⁄3
or
percent where there are three names).
(iv) National identity card.
Such licenses generally are issued on
the basis of applicant’s assertions of Other documents tending to show resi-
beneficial ownership interest without dency, such as income tax returns, may
the requirement of independent evi- also be submitted in support of govern-
dence. ment documentation, but will not suf-
(3) Joint bank account in the names of fice in and of themselves;
a husband and wife, with survivorship (2) Proof of entitlement under the in-
provision. Specific licenses are issued surance policy to be established by a
unblocking portions of such accounts copy of the policy and an affidavit from
blocked by reason of the residence of an appropriate officer of a recognized
one spouse in Cuba in favor of the non- insurance company acknowledging the
blocked spouse under the policy stated legitimacy of the beneficiary’s claim
in paragraph (a)(2) of this section. How- and the amount of the payment; and
ever, if 50 percent of the account has (c) Any document provided pursuant
been unblocked under that policy, and to this section that is not written in
the spouse who is the blocked Cuban the English language must be accom-
national subsequently dies, the sur- panied by a translation into English, as
viving spouse may be entitled to a li- well as a certification by the translator
cense unblocking the remainder of the that he is not an interested party to
assets under § 515.522. the proceeding, is qualified to make
(b) [Reserved]
the translation, and has made an accu-
[39 FR 25318, July 10, 1974, as amended at 49 rate translation of the document in
FR 27145, July 2, 1984; 54 FR 5234, Feb. 2, 1989; question.
64 FR 25813, May 13, 1999]
[54 FR 5234, Feb. 2, 1989]
§ 515.552 Proceeds of insurance poli-
cies. § 515.553 Bank accounts of official rep-
(a) Specific licenses are issued au- resentatives in Cuba of foreign gov-
thorizing payment of the proceeds of ernments.
blocked life insurance policies issued Specific licenses are issued author-
on the life of a Cuban national who izing payments from accounts of offi-
died in Cuba after July 8, 1963, to cer- cial representatives in Cuba of foreign
tain beneficiaries licensed as governments for transactions which
unblocked nationals pursuant to are not inconsistent with the purposes
§ 515.505, as follows: of any of the regulations in this chap-
(1) The applicant is a permanent resi- ter.
dent of the United States or the au-
thorized trade territory and is not a [39 FR 25319, July 10, 1974]
specially designated national; and
(2) No interest on the part of a des- § 515.554 Transfers of abandoned prop-
erty under State laws.
ignated national not licensed as an
unblocked national exists in that por- (a) Except as stated in paragraphs (b)
tion of the funds to which the appli- and (c) of this section, specific licenses
cant is entitled. are not issued authorizing the transfer
(b) Applications for specific licenses of blocked property to State agencies
under this section must include all of under State laws governing abandoned
the following information: property.

580

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Office of Foreign Assets Control, Treasury § 515.557

(b) Specific licenses are issued au- fying the citizenship and residence of
thorizing the transfer of blocked prop- each creditor as of July 8, 1963, and as
erty, pursuant to the laws of the State of the date of filing of the application;
governing abandoned property, to the (2) Current status of the Cuban cor-
appropriate State agency: Provided, poration, e.g., liquidated, nationalized,
That the State’s laws are custodial in inoperative, etc.;
nature, i.e., there is no permanent (3) A detailed description of all the
transfer of beneficial interest to the corporation’s assets, wherever located;
State. Licenses require the property to
(4) A list of all officers, directors, and
be held by the State in accounts which
stockholders giving the citizenship and
are identified as blocked under the reg-
the residence of each such person as of
ulations. A separate index of these
July 8, 1963; and,
blocked assets is required to be main-
tained by the State agency. The re- (5) Satisfactory proof that such stock
quirements of this section for identi- was owned by U.S. citizens as of July 8,
fication and separate indexing of 1963. Such proof may consist of sworn
blocked assets apply to all blocked as- statements by the persons in question
sets held by State agencies and any li- attesting to their citizenship. The Of-
censes issued prior to the effective date fice of Foreign Assets Control reserves
of this section hereby are amended by the right to require additional proof of
the incorporation of such require- citizenship.
ments. [39 FR 25319, July 10, 1974]
(c) To be eligible for a specific license
under this section, the state agency § 515.556 [Reserved]
must demonstrate that it has the stat-
utory authority under appropriate § 515.557 Accounts of Cuban partner-
state law to comply with the require- ships.
ments of § 515.205. Such a showing shall Specific licenses are issued
include an opinion of the State Attor- unblocking partnerships established
ney General that such statutory au-
under the laws of Cuba as follows:
thority exists.
(a) Where all of the general partners
[44 FR 11771, Mar. 2, 1979] and limited partners, if any, have emi-
grated from Cuba and have established
§ 515.555 Assets of Cuban firms wholly residence in the United States or in a
or substantially owned by U.S. citi-
zens. country in the authorized trade terri-
tory, specific licenses are issued
(a) Specific licenses are issued to ap- unblocking the assets of the partner-
plicants requesting the unblocking of ship after deducting the total debt due
their stock in Cuban corporations if: creditors wherever located.
(1) The corporation was wholly or
(b) Where one or more partners,
substantially owned by United States
whether general or limited, is still in
citizens on July 8, 1963;
(2) The assets are in the United Cuba (or elsewhere but still blocked),
States and either; specific licenses are issued unblocking
(3) The applicant is a stockholder only the net pro-rata shares of those
who was a United States citizen on partners who are resident in the United
July 8, 1963 and owned the stock inter- States or in a country in the author-
ests on that date; or, ized trade territory after deducting the
(4) The applicant is a non-blocked total debt due creditors wherever lo-
person who acquired such stock inter- cated.
est after July 8, 1963 from a person (c) The issuance of licenses is condi-
specified in paragraph (a)(3) of this sec- tioned on the applicant’s furnishing
tion. the following information:
(b) The issuance of licenses is condi- (1) Detailed information as to the
tioned on the applicant’s furnishing status of all debts and other obliga-
the following information: tions of the blocked partnership, speci-
(1) Detailed information as to the fying the citizenship and residence of
status of all debts and other obliga- each creditor as of July 8, 1963, and as
tions of the Cuban corporation, speci- of the date of the application;

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§ 515.558 31 CFR Ch. V (7–1–02 Edition)

(2) Current status of the Cuban part- Act if the exportation were subject to
nership, e.g., liquidated, nationalized, these provisions;
inoperative, etc.; (ii) Except in a case in which there is
(3) A detailed description of all the a reasonable likelihood that the item
partnership’s assets, wherever located; to be exported will be used for purposes
and, of torture or other human rights
(4) A list of all partners, indicating abuses;
whether they are general, limited, etc. (iii) Except in a case in which there
and giving their citizenship and resi- is a reasonable likelihood that the
dence as of July 8, 1963, and as of the item to be exported will be reexported;
date of filing of the application. or
[39 FR 25319, July 10, 1974] (iv) Except in a case in which the
item to be exported could be used in
§ 515.558 Bunkering of Cuban vessels the production of any biotechnological
and fueling of Cuban aircraft by product; and
American-owned or controlled for-
eign firms. (v) Except in a case where it is deter-
mined that the United States Govern-
Foreign firms owned or controlled by ment is unable to verify, by on-site in-
United States persons are authorized spection or other means, that the item
to engage in transactions ordinarily in- to be exported will be used for the pur-
cident to the bunkering of vessels and pose for which it was intended and only
to the fueling of aircraft owned or con- for the use and benefit of the Cuban
trolled by, or chartered to, Cuba or na- people, but this exception shall not
tionals thereof. apply to donations for humanitarian
(50 U.S.C. App. 5(b); 22 U.S.C. 2370(a); E. O. purposes to a nongovernmental organi-
9193, 3 CFR 1943 Cum. Supp.; Treas. Dept. zation in Cuba.
Order No. 128, 32 FR 3472) (3) The transaction is for the expor-
[42 FR 58518, Nov. 10, 1977; 43 FR 19852, May tation of telecommunications equip-
9, 1978. Redesignated at 64 FR 25813, May 13, ment from a third country, when the
1999] equipment is determined to be nec-
essary for efficient and adequate tele-
§ 515.559 Certain transactions by U.S.-
owned or controlled foreign firms communications service between the
with Cuba. United States and Cuba.
(b) Specific licenses will be issued in
(a) Effective October 23, 1992, no spe-
appropriate cases for certain categories
cific licenses will be issued pursuant to
of transactions between U.S.-owned or
paragraph (b) of this section for trans-
controlled firms in third countries and
actions between U.S.-owned or con-
Cuba, where local law requires, or pol-
trolled firms in third countries and
icy in the third country favors, trade
Cuba for the exportation to Cuba of
with Cuba. The categories include:
commodities produced in the author-
ized trade zone or for the importation (1) Exportation to Cuba of commod-
of goods of Cuban origin into countries ities produced in the authorized trade
in the authorized trade zone, unless, in territory, provided:
addition to meeting all requirements of (i) The commodities to be exported
paragraph (b), one or more of the fol- are non-strategic;
lowing conditions are satisfied: (ii) United States-origin technical
(1) The contract underlying the pro- data (other than maintenance, repair
posed transaction was entered into and operations data) will not be trans-
prior to October 23, 1992; ferred;
(2) The transaction is for the expor- (iii) If any U.S.-origin parts and com-
tation of medicine or medical supplies ponents are included therein, such in-
from a third country to Cuba, which clusion has been authorized by the De-
shall not be restricted: partment of Commerce;
(i) Except to the extent such restric- (iv) If any U.S.-origin spares are to be
tions would be permitted under section reexported to Cuba in connection with
5(m) of the Export Administration Act a licensed transaction, such reexport
of 1979 or section 203(b)(2) of the Inter- has been authorized by the Department
national Emergency Economic Powers of Commerce;

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Office of Foreign Assets Control, Treasury § 515.560

(v) No U.S. dollar accounts are in- trolled foreign firms directly incident to the
volved; and exportation of information or informational
(vi) Any financing or other extension materials or the donation of food to non-
governmental entities or individuals in Cuba
of credit by a U.S.-owned or controlled are exempt from the prohibitions of this
firm is granted on normal short-term part. See § 515.206. For the waiver of the pro-
conditions which are appropriate for hibitions contained in § 515.207 with respect
the commodity to be exported. to vessels transporting shipments of goods,
(2) Travel–related transactions set wares, or merchandise pursuant to this sec-
forth in § 515.560(c) and other trans- tion, see § 515.550.
actions that are directly incident to [40 FR 47108, Oct. 8, 1975, as amended at 42 FR
marketing, sales negotiation, accom- 1472, Jan. 7, 1977; 42 FR 16621, Mar. 29, 1977; 50
panied delivery, or servicing of exports FR 27438, July 3, 1985; 53 FR 47527, Nov. 23,
that are consistent with the licensing 1988; 58 FR 34710, June 29, 1993; 64 FR 25814,
policy under this section. May 13, 1999; 66 FR 36687, July 12, 2001]
(3) Importation of goods of Cuban ori-
gin into countries in the authorized § 515.560 Travel–related transactions
trade territory. to, from, and within Cuba by per-
sons subject to U.S. jurisdiction.
(c) The term strategic goods means
any item, regardless of origin, of a type (a) The travel–related transactions
included in the Commodity Control listed in paragraph (c) of this section
List of the U.S. Department of Com- may be authorized either by a general
merce (15 CFR part 399) and identified license or on a case–by–case basis by a
by the code letter ‘‘A’’ following the specific license for travel related to the
Export Control Commodity Numbers, following activities (see the referenced
or of a type the unauthorized expor- sections for general and specific licens-
tation of which from the United States ing criteria):
is prohibited by regulations issued (1) Family visits (general and specific
under the Arms Export Control Act of licenses) (see § 515.561);
1976, 22 U.S.C. 2778, or under the Atom- (2) Official business of the U.S. gov-
ic Energy Act of 1954, 42 U.S.C. 2011, et ernment, foreign governments, and cer-
seq., or successor acts restricting the tain intergovernmental organizations
export of strategic goods. (general license) (see § 515.562);
(d) Specific licenses issued pursuant (3) Journalistic activity (general and
to the policies set forth in this section specific licenses) (see § 515.563);
do not authorize any person within the (4) Professional research (general and
United States to engage in, participate specific licenses) (see § 515.564);
in, or be involved in a licensed trans- (5) Educational activities (specific li-
actions with Cuba or Cuban nationals. censes) (see § 515.565);
Such involvement includes, but is not (6) Religious activities (specific li-
limited to, assistance or participation censes) (see § 515.566);
by a U.S. parent firm, or any officer or (7) Public performances, clinics,
employee thereof, in the negotiation or workshops, athletic and other competi-
performance of a transaction which is tions, and exhibitions (general and spe-
the subject of a license application. cific licenses) (see § 515.567);
Such participation is a ground for de- (8) Support for the Cuban people (spe-
nial of a license application, or for rev- cific licenses) (see § 515.574);
ocation of a license. To be eligible for (9) Humanitarian projects (specific li-
a license under this section, the affil- censes) (see § 515.575);
iate must be generally independent, in (10) Activities of private foundations
the conduct of transactions of the type or research or educational institutes
for which the license is being sought, (specific licenses) (see § 515.576);
in such matters as decision-making, (11) Exportation, importation, or
risk-taking, negotiation, financing or transmission of information or infor-
arranging of financing, and perform- mational materials (specific licenses)
ance. (see § 515.545); and
NOTE TO § 515.559: For reexportation of U.S.- (12) Certain export transactions that
origin goods, wares, or merchandise by U.S.- may be considered for authorization
owned or controlled foreign firms, see under existing Department of Com-
§ 515.533. Transactions by U.S.-owned or con- merce regulations and guidelines with

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§ 515.560 31 CFR Ch. V (7–1–02 Edition)

respect to Cuba or engaged in by U.S.– vided in § 515.206(a), the purchase and


owned or controlled foreign firms (spe- importation of information or informa-
cific licenses) (see §§ 515.533 and 515.559). tional materials are exempt from all
(b) Effective October 28, 2000, no spe- restrictions contained in this part.
cific licenses will be issued authorizing (4) Carrying remittances to Cuba. The
the travel-related transactions in para- carrying to Cuba of any remittances
graph (c) of this section in connection that the licensed traveler is authorized
with activities other than those ref- to remit pursuant to § 515.570, provided
erenced in paragraph (a) of this sec- that no more than $300 of remittances
tion. authorized by § 515.570(a) or (b) is car-
(c) Persons generally or specifically ried in any one trip, unless otherwise
licensed under this part to engage in authorized. Those licensed travelers
transactions in connection with travel
carrying either of the emigration re-
to, from, and within Cuba may engage
mittances authorized pursuant to
in the following transactions:
§ 515.570(c) must be able to produce the
(1) Transportation to and from Cuba.
visa recipient’s full name and date of
All transportation–related transactions
ordinarily incident to travel to and birth and the number and date of
from (not within) Cuba, provided no issuance of the visa or other travel au-
more than $500 may be remitted to thorization issued. A licensed traveler
Cuba directly or indirectly in any con- to Cuba is only authorized to carry re-
secutive 12-month period for fees im- mittances that he or she is authorized
posed by the Government of Cuba in to remit and may not carry remit-
conjunction with such travel unless tances being made by other persons.
otherwise authorized. (5) Processing certain financial instru-
(2) Living expenses in Cuba. All trans- ments. All transactions incident to the
actions ordinarily incident to travel processing and payment of checks,
anywhere within Cuba, including pay- drafts, travelers’ checks, and similar
ment of living expenses and the acqui- instruments negotiated in Cuba by any
sition in Cuba of goods for personal person authorized pursuant to this part
consumption there, provided that, un- to engage in financial transactions in
less otherwise authorized, the total for Cuba. For purposes of this section, the
such expenses does not exceed the authorized transactions may be con-
‘‘maximum per diem rate’’ for Havana, ducted using currency, which is defined
Cuba in effect during the period that as money, cash, drafts, notes, trav-
the travel takes place. The per diem elers’ checks, negotiable instruments,
rate is published in the State Depart- or scrip having a specified or readily
ment’s ‘‘Maximum Travel Per Diem Al- determinable face value or worth, but
lowances for Foreign Areas,’’ a supple- which does not include gold or other
ment to section 925, Department of precious metals in any form.
State Standardized Regulations (Gov-
ernment Civilians, Foreign Areas), NOTE TO PARAGRAPH (c): The authorizations
in paragraph (c) of this section do not apply
available from the Government Print-
to fully–hosted travelers because their trav-
ing Office, Superintendent of Docu-
el–related transactions are not licensed or
ments, P.O. Box 371954, Pittsburgh, PA authorized pursuant to this part. See
15250-7954, or on the Internet at http:// § 515.420.
www.state.gov/www/perdiems/
index.html. (d) A Cuban national departing the
(3) Purchase in Cuba and importation United States may carry currency, as
into the United States of merchandise. that term is defined in paragraph (c)(5)
The purchase in Cuba and importation of this section, as follows:
as accompanied baggage into the (1) The amount of any currency
United States of merchandise with a brought into the United States by the
foreign market value not to exceed $100 Cuban national and registered with the
per person, provided the merchandise is U.S. Customs Service upon entry;
imported for personal use only. Such (2) Up to $300 in funds received as re-
merchandise may not be resold. This mittances by the Cuban national dur-
authorization may be used only once ing his or her stay in the United
every six consecutive months. As pro- States; and

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Office of Foreign Assets Control, Treasury § 515.562

(3) Compensation earned by a Cuban § 515.561 Persons visiting family mem-


national from a U.S. academic institu- bers in Cuba.
tion up to any amount that can be sub- (a) General license. The travel–related
stantiated through payment receipts transactions set forth in § 515.560(c) are
from such institution as authorized authorized in connection with travel to
pursuant to § 515.565(a)(2)(v). Cuba by persons and persons traveling
(e) The following transactions by per- with them who share a common dwell-
sons generally or specifically licensed ing as a family with them who are
to engage in travel–related trans- traveling to visit close relatives in
actions to, from, and within Cuba are Cuba in circumstances that dem-
prohibited by § 515.201 unless specifi- onstrate humanitarian need, provided
cally authorized: that the authorization contained in
(1) All transactions by persons sub- this paragraph may be used only once
ject to U.S. jurisdiction related to the in any 12–month period. See §§ 501.601
utilization of charge cards, including and 501.602 of this chapter for applica-
but not limited to debit or credit cards, ble recordkeeping and reporting re-
for expenditures in Cuba. quirements. Any additional trans-
(2) All transactions related to the actions must be specifically licensed
processing and payment by persons pursuant to paragraph (b) of this sec-
subject to U.S. jurisdiction, such as tion.
charge card issuers or intermediary (b) Specific licenses. Specific licenses
banks, of charge card instruments (e.g., may be issued on a case–by–case basis
vouchers, drafts, or sales receipts) for authorizing the travel–related trans-
expenditures in Cuba. The issuer of a actions set forth in § 515.560(c) in con-
charge card, or a foreign charge card nection with travel to Cuba by persons,
firm owned or controlled by persons and persons traveling with them who
subject to U.S. jurisdiction, is not au- share a common dwelling as a family
thorized to deal with a Cuban enter- with them, who seek to travel to visit
prise, a Cuban national, or a third- close relatives in Cuba more than once
country person, such as a franchisee, in in any consecutive 12–month period in
connection with the extension of cases involving humanitarian need.
charge card services to any person in (c) For purposes of this section, the
Cuba. term close relative used with respect to
(f) Persons traveling to Cuba fully any person means such person’s spouse,
hosted as described in § 515.420 may not child, grandchild, parent, grandparent,
carry currency to pay for living ex- great grandparent, uncle, aunt, broth-
er, sister, nephew, niece, first cousin,
penses or the purchase of goods in Cuba
mother–in–law, father–in–law, son–in–
except as specifically licensed pursuant
law, daughter–in–law, sister–in–law,
to or exempted from the application of
brother–in–law, or spouse, widow, or
this part.
widower of any of the foregoing.
(g) Nothing in this section authorizes
transactions in connection with tourist [64 FR 25815, May 13, 1999]
travel to Cuba, nor does it authorize
transactions in relation to any busi- § 515.562 Officials of the U.S. govern-
ment, foreign governments, and cer-
ness travel, including making or agree-
tain intergovernmental organiza-
ing to make any investment in Cuba, tions traveling to, from, and within
establishing or agreeing to establish Cuba on official business.
any branch or agency in Cuba, or trans-
The travel-related transactions set
ferring or agreeing to transfer any
forth in § 515.560(c) and such additional
property to Cuba, except transfers by
transactions as are directly incident to
or on behalf of individual or group
activities in their official capacities by
travelers authorized pursuant to this
persons who are officials of the United
part. States Government, any foreign gov-
[64 FR 25814, May 13, 1999, as amended at 66 ernment, or any intergovernmental or-
FR 36688, July 12, 2001] ganization of which the United States
is a member and who are traveling on

585

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§ 515.563 31 CFR Ch. V (7–1–02 Edition)

the official business of their govern- fessionals who travel to Cuba to con-
ment or international organization are duct professional research in their pro-
authorized. fessional areas are authorized, provided
[64 FR 25815, May 13, 1999]
that:
(i) The research is of a noncommer-
§ 515.563 Journalistic activities in cial, academic nature;
Cuba. (ii) The research comprises a full
work schedule in Cuba;
(a) General license. The travel–related
(iii) The research has a substantial
transactions set forth in § 515.560(c) and
likelihood of public dissemination; and
such additional transactions as are di-
(iv) The research does not fall within
rectly incident to journalistic activi-
the categories of activities described in
ties in Cuba by persons regularly em-
paragraph (c), (d), or (e) of this section.
ployed as journalists by a news report-
(2) The travel–related transactions
ing organization or by persons regu-
set forth in § 515.560(c) and such addi-
larly employed as supporting broadcast
tional transactions as are directly inci-
or technical personnel are authorized.
dent to travel to Cuba by full–time pro-
NOTE TO PARAGRAPH (a): See §§ 501.601 and fessionals to attend professional meet-
501.602 of this chapter for applicable record-
keeping and reporting requirements. The ex-
ings or conferences in Cuba organized
portation of equipment and other items to be by an international professional orga-
used in journalistic activities may require nization, institution, or association
separate licensing by the Department of that regularly sponsors meetings or
Commerce. conferences in other countries are au-
(b) Specific licenses. (1) Specific li- thorized, provided that:
censes may be issued on a case–by–case (i) The international professional or-
basis authorizing the travel–related ganization, institution, or association
transactions set forth in § 515.560(c) and is not headquartered in the United
other transactions that are directly in- States unless that organization, insti-
cident to doing research in Cuba for a tution, or association has been specifi-
free-lance article upon submission of cally licensed to sponsor the meeting
an adequate written application includ- in Cuba;
ing the following documentation: (ii) The purpose of the meeting or
(i) A detailed itinerary and a detailed conference is not the promotion of
description of the proposed research; tourism in Cuba or other commercial
and activities involving Cuba that are in-
(ii) A resume or similar document consistent with this part; and
showing a record of publications. (iii) The meeting or conference is not
(2) To qualify for a specific license intended primarily for the purpose of
pursuant to this section, the itinerary fostering production of any biotechno-
for the proposed research in Cuba for a logical products.
free-lance article must demonstrate NOTE TO PARAGRAPH (a): See §§ 501.601 and
that the research constitutes a full 501.602 of this chapter for applicable record-
work schedule that could not be ac- keeping and reporting requirements. Expor-
complished in a shorter period of time. tation of equipment and other items, includ-
(3) Specific licenses may be issued ing the transfer of technology or software to
pursuant to this section authorizing foreign persons (‘‘deemed exportation’’) and
transactions for multiple trips to Cuba items not eligible for Department of Com-
merce GFT or BAG License Exceptions, 15
over an extended period of time by ap- CFR 740.12 and 740.14, may require separate
plicants demonstrating a significant authorization by the Department of Com-
record of free–lance journalism. merce.
[64 FR 25815, May 13, 1999] (b) Specific licensing. Specific licenses
may be issued on a case–by–case basis
§ 515.564 Professional research and authorizing the travel–related trans-
professional meetings in Cuba. actions set forth in § 515.560(c) and
(a) General license. (1) The travel–re- other transactions that are directly in-
lated transactions set forth in cident to professional research and pro-
§ 515.560(c) and such additional trans- fessional meetings that do not qualify
actions that are directly incident to for the general license in paragraph (a)
professional research by full–time pro- of this section. Specific licenses may

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Office of Foreign Assets Control, Treasury § 515.565

be issued pursuant to this section au- or recording facts about their catch, does not
thorizing transactions for multiple bring these individuals’ activities within the
trips to Cuba over an extended period scope of professional research and similar ac-
of time by applicants demonstrating a tivities.
significant record of research. Specific (e) A person will not qualify as en-
licenses will not be issued for travel–re- gaging in professional research merely
lated transactions for purposes of at- because that person is a professional
tendance at meetings or conferences in who plans to travel to Cuba.
Cuba organized by the Cuban govern-
ment where such meetings or con- Example 1 to paragraph (e): A professor of
ferences could be intended primarily history interested in traveling to Cuba for
the principal purpose of learning or prac-
for the purpose of fostering the produc-
ticing Spanish or attending general purpose
tion of any biotechnological products. lectures devoted to Cuban culture and con-
(c) Categories of activities that do temporary life does not qualify for the gen-
not qualify for the general license in eral license in paragraph (a) of this section
paragraph (a) of this section and for or for a specific license issued pursuant to
which the specific licenses described in paragraph (b) of this section.
paragraph (b) of this section will not be Example 2 to paragraph (e): A professional
issued include recreational travel; photographer who wishes to take photo-
tourist travel; travel in pursuit of a graphs in Cuba that will become the basis for
hobby; research for personal satisfac- creating post cards, paintings, and other sec-
tion only; and any travel for an author- ondary products or that merely document
ized professional research purpose if the photographer’s travel does not qualify
for the general license in paragraph (a) of
the schedule of activities includes free this section or for a specific license issued
time, travel, or recreation in excess of pursuant to paragraph (b) of this section.
that consistent with a full work sched-
ule of professional research or attend- [64 FR 25815, May 13, 1999]
ance at professional meetings or con-
ferences. § 515.565 Educational activities.
(d) An entire group does not qualify (a) Specific license for U.S. academic in-
for the general license in paragraph (a) stitutions—(1) Issuance; renewal. A spe-
of this section and will not be issued a cific license may be issued to an ac-
specific license under paragraph (b) of credited U.S. academic institution au-
this section merely because some mem- thorizing the institution and its stu-
bers of the group could qualify individ- dents and employees to engage, under
ually for such licenses. the auspices of the institution, in edu-
Example 1 to paragraph (d): A musicologist cational activities involving trans-
travels to Cuba to do research on Cuban actions in which Cuba or a Cuban na-
music pursuant to the general license for tional has an interest. The application
professional researchers set forth in para- for the specific license must establish
graph (a) of this section. Others who are sim- that the U.S. academic institution is
ply interested in music but who do not re-
search music as part of their careers may accredited by an appropriate national
not engage in travel–related transactions or regional educational accrediting as-
with the musicologist in reliance on this sociation. The specific license may be
general license. For example, an art histo- renewed after a period of two years to
rian who plays in the same band with the authorize the accredited U.S. academic
musicologist would not qualify as a profes- institution and its students and em-
sional researcher of Cuban music for pur- ployees to continue to engage in the
poses of this general license.
Example 2 to paragraph (d): A specific li- transactions authorized under the in-
cense issued pursuant to paragraph (b) of stitution’s license.
this section authorizing travel-related trans- (2) Scope of transactions authorized
actions by a fish biologist who travels to under U.S. academic institution’s specific
Cuba to engage in professional research does license; documentation. Upon receipt of a
not authorize transactions by other persons specific license pursuant to paragraph
who might travel with the fish biologist but
(a)(1) of this section by the accredited
whose principal purpose in travel is to en-
gage in recreational or trophy fishing. The U.S. academic institution, the institu-
fact that such persons may engage in certain tion and its students and employees
activities with or under the direction of the are authorized to engage in the travel–
professional fish biologist, such as measuring related transactions set forth in

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§ 515.565 31 CFR Ch. V (7–1–02 Edition)

§ 515.560(c) and such additional trans- U.S. academic institution’s specific li-
actions as are directly incident to any cense.
of the categories of educational activi- (iv) Teaching at a Cuban academic
ties set forth in paragraphs (a)(2)(i) institution by an individual regularly
through (a)(2)(vii) of this section un- employed in a teaching capacity at an
dertaken under the auspices of the spe- accredited U.S. college or university,
cifically–licensed institution. Activi- provided the teaching activities are re-
ties covered by this authorization are lated to an academic program at the
limited to the following: Cuban institution. An individual plan-
(i) Participation in a structured edu- ning to teach at a Cuban academic in-
cational program by an undergraduate stitution must obtain and carry a writ-
or graduate student or undergraduate ten letter from the individual’s U.S.
or graduate student group as part of a
academic institution, citing the num-
course offered at an accredited U.S.
ber of that institution’s specific license
college or university. A student plan-
and stating that the individual is regu-
ning to engage in such transactions in
larly employed there in a teaching ca-
Cuba must carry a letter from the U.S.
academic institution stating that the pacity.
student is currently enrolled in an un- (v) Sponsorship, including the pay-
dergraduate or graduate degree pro- ment of a stipend or salary, of a Cuban
gram there and that the Cuba travel is scholar to teach or engage in other
part of a structured educational pro- scholarly activity at a college or uni-
gram of that institution and citing the versity in the United States (in addi-
number of the relevant U.S. academic tion to those transactions authorized
institution’s specific license. by the general license contained in
(ii) Noncommercial academic re- § 515.571). Such earnings may be remit-
search in Cuba specifically related to ted to Cuba as provided in § 515.570, or
Cuba by a person working to qualify carried on the person of the Cuban
academically as a professional (for ex- scholar returning to Cuba as provided
ample, research toward a graduate de- in § 515.560(d)(3).
gree). A student planning to engage in (vi) Educational exchanges sponsored
such transactions in Cuba must carry a by Cuban or U.S. secondary schools in-
letter from the student’s accredited volving secondary school students’ par-
U.S. academic institution stating that ticipation in a formal course of study
the individual is currently enrolled in a or in a structured educational program
graduate degree program and that the offered by a secondary school or other
Cuba research will be accepted for academic institution and led by a
credit toward that degree and citing teacher or other secondary school offi-
the number of the relevant U.S. aca- cial. This authorization includes par-
demic institution’s specific license. ticipation by a reasonable number of
(iii) Participation in a formal course
adult chaperones to accompany the
of study at a Cuban academic institu-
secondary school student(s) to Cuba. A
tion by an undergraduate or graduate
secondary school group planning to en-
student currently enrolled in a degree
program at an accredited U.S. college gage in such transactions in Cuba must
or university, provided the formal carry a letter from the secondary
course of study in Cuba will be accept- school sponsoring the trip, citing the
ed for credit toward the student’s un- number of the school’s specific license
dergraduate or graduate degree at that and listing the names of all persons
U.S. college or university. A student traveling with the group.
planning to engage in such trans- (vii) The organization of and prepara-
actions in Cuba must carry with him or tion for transactions and activities de-
her a letter from the student’s U.S. scribed in paragraphs (a)(2)(i) through
academic institution stating that the (a)(2)(vi) of this section by a full–time
student is currently enrolled in an un- employee of a U.S. academic institu-
dergraduate or graduate degree pro- tion. An individual engaging in such
gram and that the Cuban study will be transactions must carry a written let-
accepted for credit toward that degree ter from the individual’s U.S. academic
and citing the number of the relevant institution, citing the number of that

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Office of Foreign Assets Control, Treasury § 515.566

institution’s specific license and stat- individuals and groups affiliated with
ing that the individual is regularly em- the organization to continue to engage
ployed there. in the transactions authorized under
NOTE TO PARAGRAPH (a): See §§ 501.601 and the organization’s license.
501.602 of this chapter for applicable record- (2) Scope of transactions authorized
keeping and reporting requirements. Expor- under U.S. religious organization’s spe-
tation of equipment and other items, includ- cific license; documentation. Upon re-
ing the transfer of technology or software to ceipt by the religious organization lo-
foreign persons (‘‘deemed exportation’’), and cated in the United States of a specific
items not eligible for Department of Com- license pursuant to paragraph (a)(1) of
merce GFT or BAG License Exceptions, 15
this section, the organization and indi-
CFR 740.12 and 740.14, may require separate
licensing from the Department of Commerce. viduals or groups affiliated with the or-
ganization are authorized to engage in
(b) Specific license. Specific licenses the travel–related transactions set
may be issued on a case–by–case basis forth in § 515.560(c) and such additional
authorizing the travel–related trans- transactions as are directly incident to
actions set forth in § 515.560(c) and religious activities in Cuba under the
other transactions that are directly in- auspices of the organization. Travel–re-
cident to: lated transactions pursuant to this au-
(1) Educational activities described thorization must be for the purpose of
in paragraphs (a)(2)(i) through engaging, while in Cuba, in a full–time
(a)(2)(iii) of this section not covered by program of religious activities. Finan-
a specific license issued pursuant to cial and material donations to Cuba or
paragraph (a) of this section to an ac- Cuban nationals are not authorized by
credited U.S. academic institution; or this paragraph (a)(2). All individuals
(2) Educational exchanges not involv- who engage in transactions in which
ing academic study pursuant to a de- Cuba or Cuban nationals have an inter-
gree program when those exchanges est (including travel–related trans-
take place under the auspices of an or- actions) pursuant to this paragraph
ganization that sponsors and organizes (a)(2) must carry with them a letter
such programs to promote people–to– from the specifically–licensed U.S. reli-
people contact. gious organization, citing the number
(c) Transactions related to activities of the organization’s specific license
that are primarily tourist–oriented, in- and confirming that they are affiliated
cluding self-directed educational ac- with the organization and are traveling
tivities that are intended only for per- to Cuba to engage in religious activi-
sonal enrichment, are not authorized ties under the auspices of the organiza-
by this section. tion.
[64 FR 25816, May 13, 1999] NOTE TO PARAGRAPH (a): See §§ 501.601 and
501.602 of this chapter for applicable record-
§ 515.566 Religious activities in Cuba. keeping and reporting requirements. Expor-
tation of items to be used in Cuba may re-
(a) Specific license for U.S. religious or-
quire separate licensing by the Department
ganizations—(1) Issuance; renewal. A of Commerce.
specific license may be issued to a reli-
gious organization located in the (b) Specific licenses. Specific licenses
United States authorizing the organi- may be issued on a case–by–case basis
zation and individuals and groups af- authorizing the travel–related trans-
filiated with the organization to en- actions set forth in § 515.560(c) and
gage, under the auspices of the organi- other transactions that are directly in-
zation, in religious activities involving cident to religious activities not cov-
transactions (including travel–related ered by a specific license issued pursu-
transactions) in which Cuba or a Cuban ant to paragraph (a) of this section to
national has an interest. The applica- a U.S. religious organization. Specific
tion for the specific license must set licenses may be issued pursuant to this
forth examples of religious activities section authorizing transactions for
to be undertaken in Cuba. The reli- multiple trips over an extended period
gious organization’s specific license of time to engage in a full–time pro-
may be renewed after a period of two gram of religious activities in Cuba.
years to authorize the organization and [64 FR 25817, May 13, 1999]

589

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§ 515.567 31 CFR Ch. V (7–1–02 Edition)

§ 515.567 Public performances, clinics, Cuban national who enters the United
workshops, athletic and other com- States for the purpose of such partici-
petitions, and exhibitions. pation on a visa or other travel author-
(a) General license. The travel–related ization issued by the Department of
transactions set forth in § 515.560(c) and State.
such additional transactions as are di- (c) Specific licenses will not be issued
rectly incident to athletic competition pursuant to this section authorizing
by amateur or semi–professional ath- any:
letes or amateur or semi–professional (1) Payment to Cuba or any national
athletic teams traveling to participate thereof for appearance fees or other
in athletic competition held in Cuba such payments in connection with or
are authorized, provided that: resulting from any public exhibition,
(1) The athletic competition in Cuba performance, clinic, workshop, or com-
is held under the auspices of the inter- petition in the United States or in
national sports federation for the rel- Cuba; or
evant sport;
(2) Debit to a blocked account.
(2) The United States participants in
the athletic competition are selected [64 FR 25817, May 13, 1999]
by the United States federation for the
relevant sport; and § 515.568 [Reserved]
(3) The competition is open for at-
tendance, and in relevant situations § 515.569 Foreign passengers’ baggage.
participation, by the Cuban public. The importation of Cuban–origin
NOTE TO PARAGRAPH (a): See §§ 501.601 and goods, otherwise prohibited by this
501.602 of this chapter for applicable record- part, brought into the United States as
keeping and reporting requirements. Expor- baggage by any person arriving in the
tation of items to be used in Cuba may re-
United States other than a citizen or
quire separate licensing by the Department
of Commerce. resident of the United States is hereby
authorized, notwithstanding the provi-
(b) Specific licenses. (1) Specific li-
sions of § 515.803, provided that such
censes, including for multiple trips to
Cuba over an extended period of time, goods are not in commercial quantities
may be issued on a case–by–case basis and are not imported for resale. This
authorizing the travel–related trans- authorization does not apply to the im-
actions set forth in § 515.560(c) and portation of Cuban–origin alcohol or
other transactions that are directly in- tobacco products.
cident to participation in a public per- [64 FR 25818, May 13, 1999]
formance, clinic, workshop, athletic or
other competition, or exhibition in § 515.570 Remittances to nationals of
Cuba by participants in such activities, Cuba.
provided that:
(a) Family remittances authorized. (1)
(i) The event is open for attendance,
Persons subject to the jurisdiction of
and in relevant situations participa-
the United States who are 18 years of
tion, by the Cuban public;
(ii) All profits from the event after age or older are authorized to make re-
costs are donated to an independent mittances to a national of Cuba resi-
nongovernmental organization in Cuba dent in Cuba or in the authorized trade
or a U.S.–based charity, with the objec- territory (including any member of his
tive, to the extent possible, of pro- or her household) who is a close rel-
moting people–to–people contacts or ative of the remitter or of the remit-
otherwise benefitting the Cuban peo- ter’s spouse, for the support of the
ple. close relative provided that:
(2) In addition to those transactions (i) The remitter’s total remittances
authorized by § 515.571, specific licenses pursuant to paragraphs (a) and (b) of
may be issued on a case–by–case basis this section to any one Cuban house-
authorizing transactions incident to hold, regardless of the number of close
participation in a public exhibition, relatives comprising the household, do
performance, clinic, workshop, or com- not exceed $300 in any consecutive 3–
petition in the United States by a month period; and

590

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Office of Foreign Assets Control, Treasury § 515.570

(ii) The remittances are not made (iii) The remittances are not made
from a blocked source, except that re- from a blocked source, except that re-
mittances to Cuban households located mittances to Cuban households located
in the authorized trade territory may in the authorized trade territory may
come from a blocked account in a come from a blocked account in a
banking institution within the United banking institution within the United
States held in the name of, or in which States held in the name of, or in which
the beneficial interest is held by, the the beneficial interest is held by, the
payee or members of the payee’s house- payee or members of the payee’s house-
hold. hold.
(2) A person authorized to make re- (2) A person authorized to make re-
mittances under this paragraph (a) and mittances under this paragraph (b) and
who is authorized to engage in travel– who is authorized to engage in travel–
related transactions relating to Cuba related transactions relating to Cuba
pursuant to a general license contained pursuant to a general license contained
in or specific license issued pursuant to in or specific license issued pursuant to
this part may carry no more than $300 this part may carry no more than $300
in total remittances authorized in this in total remittances authorized in
paragraph (a), and only if the remit- paragraphs (a) and (b) of this section,
tances will not exceed the maximum and only if the remittances will not ex-
amount set forth in paragraph (a) of ceed the maximum amount set forth in
this section for any payee within the paragraph (a) or (b) of this section for
past 3 months. See § 515.560(c)(4). any payee within the past 3 months.
(3) For purposes of this paragraph (a), See § 515.560(c)(4).
the term close relative used with respect NOTE TO PARAGRAPH (b): The maximum
to any person means such person’s amount set forth in paragraph (b) of this sec-
spouse, child, grandchild, parent, tion does not apply to remittances to a
grandparent, great grandparent, uncle, Cuban individual who has been specifically
aunt, brother, sister, nephew, niece, licensed as an unblocked national pursuant
first cousin, mother–in–law, father–in– to § 515.505(b), as remittances to unblocked
persons do not require separate authoriza-
law, son–in–law, daughter–in–law, sis- tion.
ter–in–law, brother–in–law, or the
spouse, widow, or widower of any of the (c) Emigration–related remittances au-
foregoing. thorized. Persons subject to the juris-
diction of the United States are au-
NOTE TO PARAGRAPH (a): The maximum
thorized to remit the following
amount set forth in paragraph (a) of this sec-
tion does not apply to remittances to a amounts:
Cuban individual who has been specifically (1) Up to $500 on a one–time basis to
licensed as an unblocked national pursuant any Cuban national for the purpose of
to § 515.505(b), as remittances to unblocked covering the payee’s preliminary ex-
persons do not require separate authoriza- penses associated with emigrating from
tion. Cuba to the United States. This remit-
(b) Individual–to–household remittances tance may be sent through a licensed
authorized. (1) Persons subject to the remittance forwarding service before
jurisdiction of the United States who the payee has received a valid visa
are 18 years of age or older are author- issued by the State Department or
ized to make remittances to any Cuban other approved U.S.–immigration docu-
household (including to any Cuban in- ment, but may not be carried to Cuba
dividual living alone) located in Cuba by the remitter during this period. A
or in the authorized trade territory, person who is authorized to engage in
provided that: travel–related transactions relating to
(i) The remitter’s total remittances Cuba pursuant to a general license con-
pursuant to paragraphs (a) and (b) of tained in or specific license issued pur-
this section to any one Cuban house- suant to this part may carry remit-
hold do not exceed $300 in any consecu- tances pursuant to this paragraph
tive 3–month period; (c)(1), provided the traveler can dem-
(ii) No member of the payee’s house- onstrate each visa recipient’s full name
hold is a senior–level Cuban govern- and date of birth and the number and
ment official or senior–level Cuban date of issuance of the U.S. visa or
communist party official; and other travel authorization issued. See

591

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§ 515.571 31 CFR Ch. V (7–1–02 Edition)

§ 515.560(c)(4). Any amount remitted or manitarian need is demonstrated, in-


carried to Cuba directly or indirectly cluding illness or medical emergency.
in conjunction with the processing of a
[64 FR 25818, May 13, 1999]
letter of invitation or similar docu-
ment must be applied against the $500 § 515.571 Certain transactions incident
limit; and to travel to, from, and within the
(2) Up to an additional $500 on a one– United States by Cuban nationals.
time basis to any Cuban national for
(a) Except as provided in paragraph
the purpose of enabling the payee to
(c) of this section, the following trans-
emigrate from Cuba to the United
actions by or on behalf of a Cuban na-
States, including for the purchase of
tional who enters the United States
airline tickets and payment of exit or
from Cuba on a visa or other travel au-
third–country visa fees or other travel-
thorization issued by the State Depart-
related fees. Such remittances may be
ment are authorized:
transferred only after the Cuban indi-
vidual has received a valid visa issued (1) All transactions ordinarily inci-
by the State Department or other ap- dent to travel between the United
proved U.S. immigration documenta- States and Cuba, including the impor-
tion. Persons remitting amounts pur- tation into the United States of accom-
suant to this paragraph (c)(2) must pro- panied baggage for personal use;
vide to the remittance forwarder the (2) All transactions ordinarily inci-
visa recipient’s full name and date of dent to travel and maintenance within
birth and the number and date of the United States, including the pay-
issuance of the U.S. visa or other trav- ment of living expenses and the acqui-
el authorization issued. A person who sition of goods for personal consump-
is authorized to engage in travel–re- tion in the United States;
lated transactions relating to Cuba (3) All transactions on behalf of air-
pursuant to a general license contained craft or vessels incident to non–sched-
in or specific license issued pursuant to uled flights or voyages between the
this part may carry remittances pursu- United States and Cuba, provided that
ant to this paragraph (c)(2), provided the carrier used has a carrier service
the traveler can demonstrate each visa provider license issued pursuant to
recipient’s full name and date of birth § 515.572. This paragraph does not au-
and the number and date of issuance of thorize the carriage of any merchan-
the U.S. visa or other travel authoriza- dise into the United States except ac-
tion issued. See § 515.560(c)(4). companied baggage; and
(d) Specific licenses. Specific licenses (4) Normal banking transactions in-
may be issued on a case–by–case basis volving foreign currency drafts, trav-
authorizing the following: elers’ checks, or other instruments ne-
(1) Remittances by persons subject to gotiated incident to travel in the
U.S. jurisdiction to independent non- United States by any person under the
governmental entities in Cuba; authority of this section.
(2) Repatriation of earnings by a (b) Payments and transfers of credit
Cuban scholar pursuant to in the United States from blocked ac-
§ 515.565(a)(2)(v) in excess of the amount counts in domestic banking institu-
specified in paragraph (a) of this sec- tions held in the name of a Cuban na-
tion; tional who enters the United States on
(3) Remittances by persons subject to a visa or other travel authorization
U.S. jurisdiction from blocked ac- issued by the State Department to or
counts to Cuban households in the au- upon the order of such Cuban national
thorized trade territory in excess of the are authorized provided that:
amount specified in paragraphs (a) and (1) Such payments and transfers of
(b) of this section; or credit are made only for the living,
(4) Remittances by persons subject to traveling, and similar personal ex-
U.S. jurisdiction to a person in Cuba, penses in the United States of such
directly or indirectly, for transactions Cuban national or his or her family;
to facilitate non-immigrant travel by (2) The total of all such payments
an individual in Cuba to the United and transfers of credit made under this
States under circumstances where hu- section from the accounts of such

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Office of Foreign Assets Control, Treasury § 515.572

Cuban national do not exceed $250 in dividual travelers as accompanied bag-


any one calendar month; and gage, must also be authorized by li-
(3) No payment or transfer is made censes issued by the U.S. Department
from a blocked account in which a spe- of Commerce.
cially designated national has an inter- (3) Authorization of remittance for-
est. warders. Persons subject to U.S. juris-
(c) This section does not authorize diction, including persons who provide
any transfer of property to Cuba, or, payment forwarding services and non-
except as otherwise authorized in para- commercial organizations acting on be-
graph (b) of this section, any debit to a half of donors, who wish to provide
blocked account. services in connection with the collec-
[64 FR 25819, May 13, 1999] tion or forwarding of remittances au-
thorized pursuant to this part must ob-
§ 515.572 Authorization of transactions tain authorization from the Office of
incident to the provision of travel Foreign Assets Control. Depository in-
services, carrier services, and re- stitutions, as defined in § 515.333, are
mittance forwarding services.
exempt from this requirement.
(a)(1) Authorization of travel service (b) Terms and conditions of authoriza-
provider. The following persons wishing tion to engage in service transactions. Au-
to provide services in connection with thorization to engage in service trans-
travel to Cuba are ‘‘travel service pro- actions will be issued only upon the ap-
viders’’ for purposes of this part: Trav- plicant’s written affirmation and sub-
el agents, ticket agents, commercial sequent demonstration that it does not
and noncommercial organizations that participate in discriminatory practices
arrange travel to Cuba; tour operators; of the Cuban government against cer-
persons arranging through transpor- tain residents and citizens of the
tation to Cuba; persons chartering an United States. Examples of such prac-
aircraft or vessel on behalf of others in tices include, but are not limited to,
Cuba; and persons arranging hotel ac- charging discriminatory rates for air
commodations, ground transportation,
travel or requiring payment for serv-
local tours, and similar travel activi-
ices, such as hotel accommodations
ties on behalf of others in Cuba. Travel
and meals, not desired, planned to be
service providers must obtain author-
utilized, or actually utilized, based on
ization from the Office of Foreign As-
such characteristics as race, color, reli-
sets Control before providing services
gion, sex, citizenship, place of birth, or
with respect to travel to Cuba. The list
national origin. Authorization, wheth-
stated above should not be considered
er a grant of provisional authorization
exhaustive, as other persons may be
or a license issued pursuant to this
‘‘travel service providers’’ within the
part, does not permit a travel or car-
meaning of this part. Opinions may be
obtained from the Office of Foreign As- rier service provider to provide services
sets Control concerning the applica- in connection with any individual’s
bility of this licensing requirement in transactions incident to travel which
individual cases. are prohibited by this part.
(2) Authorization of carrier service pro- (c) Initial applications for licenses. The
vider. Persons subject to U.S. jurisdic- initial application for a license shall
tion wishing to provide carrier services contain:
by aircraft or vessels incidental to (1) The applicant organization’s
their non-scheduled flights or voyages name, address, telephone number, and
to, from, or within Cuba are ‘‘carrier the name of an official of the applicant
service providers’’ for purposes of this organization responsible for its li-
part. Carrier service providers must ob- censed services;
tain authorization from the Office of (2) The state of applicant’s organiza-
Foreign Assets Control before pro- tion, if a juridical entity, the address
viding services with respect to non- of its principal place of business and all
scheduled flights or voyages to, from, branch offices, the identity and owner-
or within Cuba. Carriage to or from ship percentages of all shareholders or
Cuba of any merchandise, cargo or partners, and the identity and position
gifts, other than those permitted to in- of all principal officers and directors;

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§ 515.572 31 CFR Ch. V (7–1–02 Edition)

(3) Copies of any bylaws, articles of terly reports to the Department of the
incorporation, partnership agreements, Treasury, Office of Foreign Assets Con-
management agreements, or other doc- trol, Washington, DC 20220, during the
uments pertaining to the organization, term of the license. The required con-
ownership, control, or management of tent of such reports and their due dates
the applicant; and shall be provided to the service pro-
(4)(i) In the case of applications for vider in a letter authorizing the pro-
authorization to serve as travel or car- vider to commence services. Each such
rier service providers, a report on the report will cover only the three-month
forms and other procedures used to es- period immediately preceding the date
tablish that each customer is in full of the report.
compliance with U.S. law imple-
(2) While the names and addresses of
menting the Cuban embargo and either
qualifies for one of the general licenses individual travelers or remitters, the
contained in this part authorizing trav- number and amount of each remit-
el–related transactions in connection tance, and the name and address of
with travel to Cuba, has received a spe- each recipient, as applicable, need not
cific license from the Office of Foreign be submitted with quarterly reports,
Assets Control issued pursuant to this this information must be retained on
part, or is a fully–hosted traveler as de- file with all other information required
scribed in § 515.420. In the case of a cus- by § 515.601 of this chapter. These
tomer traveling pursuant to a general records must be furnished to the Office
license or claiming to be traveling of Foreign Assets Control on demand
fully hosted, the applicant must dem- pursuant to § 515.602 of this chapter.
onstrate that it requires each customer (3) Presentation of passenger lists. Tour
to attest, in a signed statement, to his operators, persons operating an air-
or her qualification for the particular craft or vessel, or persons chartering
general license or fully–hosted status an aircraft or vessel on behalf of oth-
claimed. The statement must provide ers, for travel to, from, and within
facts supporting the customer’s belief Cuba must furnish the U.S. Customs
that he or she qualifies for the general Service on demand a list of passengers
license or fully–hosted status claimed. on each flight or voyage to, from, and
In the case of a customer traveling
within Cuba.
under a specific license, the applicant
must demonstrate that it requires the (e) Procedures governing the grant of
customer to furnish it with a copy of provisional authority, denial, suspension,
the license. The copy of the signed or revocation of authority to engage in
statement or the specific license must service transactions—(1) Grant of provi-
be maintained on file with the appli- sional authority. Following submission
cant. of a complete application as described
(ii) In the case of applications for au- in paragraph (c) of this section, the
thorization as remittance forwarders, a submission of any additional relevant
report on the forms, account books, information, and a preliminary evalua-
and other recordkeeping procedures tion by the Office of Foreign Assets
used to determine whether each cus- Control, the applicant will be notified
tomer has violated the terms of any in writing that provisional authority
authorization for remittances con- has been granted to provide the serv-
tained in or issued pursuant to this ices contemplated in the application.
part, or sent remittances to persons in- This provisional authority to provide
eligible to receive them under § 515.570; services will remain in effect pending a
and the method by which remittances final decision to grant or deny the li-
are sent to Cuba and the procedures cense.
used by the applicant to ensure that (2) Denial of license—(i) Notice of de-
the remittances are received by the nial. If the Director, Office of Foreign
persons intended.
Assets Control, determines that the ap-
(d) Required reports and recordkeeping.
plication for a license to engage in
(1) Each specific license or grant of
provisional authority shall require service transactions related to travel
that the service provider furnish quar- to Cuba, carrier service transactions

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Office of Foreign Assets Control, Treasury § 515.573

related to travel to Cuba, or trans- tered by the Office of Foreign Assets


actions related to remittance for- Control;
warding should be denied for any rea- (B) Arose directly out of the conduct
son, notice of denial shall be given to of the business covered by the license;
the applicant. The notice of denial or
shall state the reasons for the denial. (C) Involved larceny, extortion, for-
(ii) Grounds for denial. The causes suf- gery, counterfeiting, fraudulent con-
ficient to justify denial of an applica- cealment, embezzlement, fraudulent
tion for a license may include, but need conversion, misappropriation of funds,
not be limited to: or a violation of the Customs laws, ex-
(A) Any cause which would justify port or import control laws, or banking
suspension or revocation of the author- laws.
ity of a service provider pursuant to (iv) The service provider has violated
paragraph (e)(3) of this section; any provision of law enforced by the
(B) Failure to file a full and complete Office of Foreign Assets Control or the
application; rules or regulations issued under any
(C) Any willful misstatement of per- such provision;
tinent facts in the application; (v) The service provider has coun-
(D) Evidence indicating that the ap- seled, commanded, induced, procured,
plicant participates in discriminatory or knowingly aided or abetted the vio-
practices of the Cuban Government lation by any other person of any pro-
against certain residents and citizens vision of any law or regulation referred
of the United States as described in to above;
paragraph (b) of this section; or (vi) The service provider has, in the
(E) A reputation imputing to the ap- course of the business covered by the
plicant criminal, dishonest, or uneth- license, with felonious intent, in any
ical conduct, or a record of such con- manner willfully and knowingly de-
duct. ceived, defrauded, misled, threatened,
(3) Suspension or revocation of a license or coerced any client or prospective
or provisional authorization. A license or client; or
provisional authorization issued pursu-
(vii) The service provider has com-
ant to this section may be suspended
mitted any other act or omission that
for a specific period of time, or re-
demonstrates unfitness to conduct the
voked, for the following reasons:
business covered by the license.
(i) The service provider has willfully
made or caused to be made in any ap- [57 FR 53999, Nov. 16, 1992, as amended at 59
plication for any license, request for a FR 31142, June 17, 1994; 59 FR 44886, Aug. 30,
ruling or opinion, or report be filed 1994; 63 FR 27349, May 18, 1998. Redesignated
with the Office of Foreign Assets Con- and amended at 64 FR 25813, 25819, May 13,
trol, any statement that was, at the 1999]
time and in light of the circumstances
§ 515.573 Transactions by news organi-
under which it was made, false or mis- zations.
leading with respect to any material
fact, or has omitted to state in any ap- (a) Specific licenses may be issued
plication, request for ruling or opinion, authorizing all transactions necessary
or report any material fact that was for the establishment and operation of
required; news bureaus in Cuba whose primary
(ii) The service provider has failed to purpose is the gathering and dissemi-
file timely reports or comply with the nation of news to the general public.
recordkeeping requirements of his li- Transactions that may be authorized
cense or provisional authorization. include, but are not limited to, those
(iii) The service provider has been incident to the following:
convicted, at any time after filing an (1) Leasing office space and securing
application for a license under this sec- related goods and services;
tion, of any felony or misdemeanor (2) Hiring Cuban nationals to serve as
that: support staff;
(A) Involved the importation, expor- (3) Purchasing Cuban–origin goods
tation, or transfer of property in viola- for use in the operation of the office;
tion of any law or regulation adminis- and

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§ 515.574 31 CFR Ch. V (7–1–02 Edition)

(4) Paying fees related to the oper- travel–related transactions set forth in
ation of the office in Cuba. § 515.560(c) and such additional trans-
(b) Specific licenses may be issued actions as are directly incident to cer-
authorizing transactions necessary for tain humanitarian projects in or re-
the establishment and operation of lated to Cuba not otherwise covered by
news bureaus in the United States by this part that are designed to directly
Cuban organizations whose primary benefit the Cuban people. Such projects
purpose is the gathering and dissemi- may include, but are not limited to,
nation of news to the general public. medical and health–related projects,
(c) Specific licenses may be issued environmental projects, projects in-
authorizing transactions related to hir- volving non–formal educational train-
ing Cuban nationals to provide report-
ing including adult literacy and voca-
ing services or other services related to
tional skills, community–based grass
the gathering and dissemination of
roots projects, projects suitable to the
news.
(d) NOTE: The number assigned to a development of small–scale private en-
specific license issued pursuant to this terprise, projects that are related to
section should be referenced in all im- agricultural and rural development
port documents, and in all funds trans- which promote independent activity,
fers and other banking transactions and projects involving the donation of
through banks organized or located in goods to meet basic human needs as
the United States, in connection with provided in 15 CFR 740.12(b) of the Ex-
the licensed transaction to avoid the port Administration Regulations, 15
blocking of goods imported from Cuba CFR parts 730–774. Specific licenses
and the interruption of the financial may be issued authorizing transactions
transactions with Cuba. for multiple visits for the same project
[60 FR 54197, Oct. 20, 1995. Redesignated at 64
over an extended period of time by ap-
FR 25813, May 13, 1999] plicants demonstrating a significant
record of overseas humanitarian
§ 515.574 Support for the Cuban peo- projects.
ple.
[64 FR 25819, May 13, 1999]
(a) Specific licenses may be issued on
a case–by–case basis authorizing the § 515.576 Activities of private founda-
travel–related transactions set forth in tions or research or educational in-
§ 515.560(c) and other transactions that stitutes.
are intended to provide support for the
Specific licenses may be issued on a
Cuban people including, but not lim-
case–by–case basis authorizing the
ited to, the following:
travel–related transactions set forth in
(1) Activities of recognized human
rights organizations; and § 515.560(c) and such additional trans-
(2) Activities of individuals and non– actions as are directly incident to ac-
governmental organizations which pro- tivities by private foundations or re-
mote independent activity intended to search or educational institutes that
strengthen civil society in Cuba. have an established interest in inter-
(b) Licenses will only be issued pur- national relations to collect informa-
suant to this section upon a clearly ar- tion related to Cuba for noncommer-
ticulated showing that the proposed cial purposes, not otherwise covered by
transactions are consistent with the the general license for professional re-
purposes of this part and that no sig- search contained in § 515.564 or more
nificant accumulation of funds or fi- properly issued under § 515.575, relating
nancial benefit will accrue to the Gov- to humanitarian projects. Specific li-
ernment of Cuba. censes may be issued pursuant to this
[60 FR 54197, Oct. 20, 1995, as amended at 64 section authorizing transactions for
FR 25819, May 13, 1999] multiple trips to Cuba for the same
project over an extended period of
§ 515.575 Humanitarian projects. time.
Specific licenses may be issued on a [64 FR 25820, May 13, 1999]
case–by–case basis authorizing the

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Office of Foreign Assets Control, Treasury § 515.702

Subpart F—Reports Secretary of the Treasury, be forfeited


to the United States Government.
§ 515.601 Records and reports. (b) The criminal penalties provided
in TWEA are subject to increase pursu-
For provisions relating to records
ant to 18 U.S.C. 3571 which, when read
and reports, see subpart C of part 501 of
in conjunction with section 16 of
this chapter.
TWEA, provides that persons convicted
[62 FR 45106, Aug. 25, 1997] of violating TWEA may be fined up to
the greater of either $250,000 for indi-
Subpart G—Penalties viduals and $1,000,000 for organizations
or twice the pecuniary gain or loss
from the violation.
SOURCE: 63 FR 10331, Mar. 3, 1998, unless
(c) Attention is directed to 18 U.S.C.
otherwise noted.
1001, which provides that whoever, in
§ 515.701 Penalties. any matter within the jurisdiction of
any department or agency of the
(a) Attention is directed to section 16 United States, knowingly and willfully
of the Trading with the Enemy Act (50 falsifies, conceals or covers up by any
U.S.C. App. 16—‘‘TWEA’’), as adjusted trick, scheme, or device a material
pursuant to the Federal Civil Penalties fact, or makes any false, fictitious or
Inflation Adjustment Act of 1990 (Pub. fraudulent statements or representa-
L. 101–410, as amended, 28 U.S.C. 2461 tions, or makes or uses any false writ-
note), which provides that: ing or document knowing the same to
(1) Persons who willfully violate any contain any false, fictitious or fraudu-
provision of TWEA or any license, rule, lent statement or entry, shall be fined
or regulation issued thereunder, and under title 18, United States Code, or
persons who willfully violate, neglect, imprisoned not more than 5 years, or
or refuse to comply with any order of both.
the President issued in compliance
with the provisions of TWEA shall, § 515.702 Prepenalty notice; contents;
upon conviction, be fined not more respondent’s rights; service.
than $1,000,000 or, if an individual, be (a) When required. If the Director of
fined not more than $100,000 or impris- the Office of Foreign Assets Control
oned for not more than 10 years, or has reasonable cause to believe that
both; and an officer, director, or agent there has occurred a violation of any
of any corporation who knowingly par- provision of this part or a violation of
ticipates in such violation shall, upon the provisions of any license, ruling,
conviction, be fined not more than regulation, order, direction or instruc-
$100,000 or imprisoned for not more tion issued by or pursuant to the direc-
than 10 years, or both. tion or authorization of the Secretary
(2) Any property, funds, securities, of the Treasury pursuant to this part
papers, or other articles or documents, or otherwise under the Trading with
or any vessel, together with its tackle, the Enemy Act, and the Director deter-
apparel, furniture, and equipment, con- mines that further proceedings are
cerned in a violation of TWEA may warranted, he or she shall issue to the
upon conviction be forfeited to the person concerned a notice of his or her
United States. intent to impose a monetary penalty
(3) The Secretary of the Treasury and/or forfeiture. The prepenalty no-
may impose a civil penalty of not more tice may be issued whether or not an-
than $55,000 per violation on any person other agency has taken any action
who violates any license, order, or reg- with respect to this matter.
ulation issued under TWEA. (b) Contents—(1) Facts of violation.
(4) Any property, funds, securities, The prepenalty notice shall describe
papers, or other articles or documents, the violation, specify the laws and reg-
or any vessel, together with its tackle, ulations allegedly violated, and state
apparel, furniture, and equipment, that the amount of the proposed monetary
is the subject of a violation subject to penalty and/or forfeiture.
a civil penalty issued pursuant to (2) Respondent’s rights—(i) Right to re-
TWEA shall, at the discretion of the spond. The prepenalty notice shall also

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§ 515.703 31 CFR Ch. V (7–1–02 Edition)

inform the respondent of respondent’s other agent authorized by appointment


right to respond in writing to the no- or by law to accept or receive service
tice within 30 calendar days of the for the respondent and evidenced by a
mailing or other service of the notice certificate of service signed and dated
pursuant to paragraph (c) of this sec- by the individual making such service,
tion, as to why a monetary penalty stating the method of service and the
and/or forfeiture should not be im- identity of the individual with whom
posed, or, if imposed, why it should be the prepenalty notice was left; or
in a lesser amount than proposed. (4) Upon proof of service on a re-
(ii) Right to request a hearing. The spondent who is not resident in the
prepenalty notice shall also inform the United States by any method of service
respondent that, in the response pro- permitted by the law of the jurisdic-
vided for in paragraph (b)(2)(i) of this tion in which the respondent resides or
section, the respondent may also re- is located, provided the requirements
quest a hearing conducted pursuant to of such foreign law satisfy due process
5 U.S.C. 554–557 to present the respond- requirements under United States law
ent’s defenses to the imposition of a with respect to notice of administra-
penalty and/or forfeiture and to offer tive proceedings, and where applicable
any other information that the re-
laws or intergovernmental agreements
spondent believes should be included in
or understandings make the methods of
the agency record prior to a final de-
service set forth in paragraphs (c)(1)
termination concerning the imposition
through (3) of this section inappro-
of a penalty and/or forfeiture. A failure
priate or ineffective for service upon
to request a hearing within 30 calendar
the nonresident respondent.
days of service of the prepenalty notice
constitutes a waiver of a hearing. § 515.703 Response to prepenalty no-
(iii) Right to request discovery prior to tice; requests for hearing and pre-
hearing. The prepenalty notice shall hearing discovery; waiver; informal
also inform the respondent of the right settlement.
to discovery prior to a requested hear-
(a) Deadline for response. The respond-
ing. Discovery must be requested in
ent shall have 30 calendar days from
writing in the response provided for in
the date of mailing or other service of
paragraph (b)(2)(i) of this section,
jointly with respondent’s request for a the prepenalty notice pursuant to
hearing. A failure to file a request for § 515.702(c) to respond thereto. The re-
discovery within 30 calendar days of sponse, signed and dated, may be sent
service of the prepenalty notice con- by facsimile transmission to the Office
stitutes a waiver of prehearing dis- of Foreign Assets Control, at 202/622–
covery. 1657, or by courier or other expedited
(c) Service. The prepenalty notice, or means at any time during the 30–day
any amendment or supplement thereto, response period if an original copy is
shall be served upon the respondent. sent concurrently via the U.S. Postal
Service shall be presumed completed: Service, registered or certified mail,
(1) Upon mailing a copy by registered return receipt requested. The date
or certified mail, return receipt re- shown on the date–stamped registered
quested, addressed to the respondent at or certified mail postal receipt will
the respondent’s last known address; or constitute the filing date of the re-
(2) Upon the mailing date stated in a sponse.
date–stamped postal receipt presented (b) Form and contents of response—(1)
by the Office of Foreign Assets Control In general. The written response need
with respect to any respondent who has not be in any particular form, but shall
refused, avoided, or in any way at- contain information sufficient to indi-
tempted to decline delivery, tender, or cate that it is in response to the
acceptance of the registered or cer- prepenalty notice. It should be respon-
tified letter or has refused to recover a sive to the allegations contained there-
registered or certified letter served; or in and set forth the nature of the re-
(3) Upon personal service by leaving a spondent’s defenses.
copy with the respondent or an officer, (i) The response must admit or deny
a managing or general agent, or any specifically each separate allegation of

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Office of Foreign Assets Control, Treasury § 515.704

violation made in the prepenalty no- In the event of settlement at the


tice. If the respondent is without prepenalty stage, the claim proposed in
knowledge as to an allegation, the re- the prepenalty notice will be with-
sponse shall so state, and such state- drawn, the respondent is not required
ment shall operate as a denial. Failure to take a written position on allega-
to deny, controvert, or object to any tions contained in the prepenalty no-
allegation will be deemed an admission tice, and the Office of Foreign Assets
of that allegation. Control will make no final determina-
(ii) The response must also set forth tion as to whether a violation oc-
any additional or new matter or argu- curred. The amount accepted in settle-
ments the respondent seeks, or shall ment of allegations in a prepenalty no-
seek, to use in support of all defenses tice may vary from the civil penalty
or claims for mitigation. Any defense that might finally be imposed in the
or partial defense not specifically set event of a formal determination of vio-
forth in the response shall be deemed lation. In the event no settlement is
waived, and evidence thereon may be reached, the 30 calendar day period
refused, except for good cause shown. specified in paragraph (a) of this sec-
(iii) The response must also accu- tion for written response to the
rately state, for each respondent, the prepenalty notice remains in effect un-
respondent’s full name and address for less additional time is granted by the
future service, together with current Office of Foreign Assets Control. A fail-
telephone and, if applicable, facsimile ure to request a hearing and prehearing
machine numbers and area code. If re- discovery in writing within 30 calendar
spondent is represented by counsel, days of service of the prepenalty notice
counsel’s full name and address, to- constitutes a waiver of a hearing and
gether with telephone and facsimile prehearing discovery.
numbers and area code, may be pro-
vided in lieu of service information for § 515.704 Penalty imposition or with-
the respondent. The respondent or re- drawal absent a hearing request.
spondent’s counsel of record is respon- (a) No violation. If, in the absence of a
sible for providing timely written no- timely hearing request, after consid-
tice to the parties of any subsequent ering any response to the prepenalty
changes in the information provided. notice and any relevant facts, the Di-
(2) Request for hearing and prehearing rector determines that there was no
discovery; waiver. Any request for an violation by the respondent named in
administrative hearing and prehearing the prepenalty notice, the Director
discovery must be made, if at all, in promptly shall notify the respondent in
the written response made pursuant to writing of that determination and that
this section and within the 30 calendar no civil monetary penalty or civil for-
day period specified in § 515.705(a). A feiture pursuant to this subpart will be
failure to request a hearing and pre- imposed.
hearing discovery in writing within 30 (b) Violation. If, in the absence of a
calendar days of service of the timely hearing request, after consid-
prepenalty notice constitutes a waiver ering any response to the prepenalty
of a hearing and prehearing discovery. notice and any relevant facts, the Di-
A response asserting that respondent rector determines that there was a vio-
reserves the right to request a hearing lation by the respondent named in the
or prehearing discovery beyond the 30 prepenalty notice, the Director
calendar day period is ineffectual. promptly shall issue a written notice of
(3) Informal settlement; response dead- the imposition by the Office of Foreign
line. In addition or as an alternative to Assets Control of the civil monetary
a written response to a prepenalty no- penalty and/or civil forfeiture and/or
tice pursuant to this section, the re- other available disposition with re-
spondent or respondent’s representa- spect to that respondent.
tive may contact the Office of Foreign (1) The penalty/forfeiture notice shall
Assets Control as advised in the inform the respondent that payment of
prepenalty notice to propose the settle- the assessed penalty must be made
ment of allegations contained in the within 30 calendar days of the mailing
prepenalty notice and related matters. of the penalty notice.

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§ 515.705 31 CFR Ch. V (7–1–02 Edition)

(2) The penalty/forfeiture notice shall (2) Closing time. The time for filing
inform the respondent of the require- any document expires at 5:00 p.m. local
ment to furnish respondent’s taxpayer Washington, DC time on the last day
identification number pursuant to 31 when such filing may be made.
U.S.C. 7701 and that the Department in-
tends to use such number for the pur- § 515.706 Hearing.
poses of collecting and reporting on (a) Notice of hearing. (1) Any respond-
any delinquent penalty amount in the ent requesting a hearing shall receive
event of a failure to pay the penalty notice of the time and place of the
imposed. hearing at the service address provided
pursuant to § 515.703(b)(1)(iii). Requests
§ 515.705 Time and opportunity to re- to change the time and place of a hear-
quest a hearing. ing may be submitted to the Adminis-
(a) Deadline for hearing request. With- trative Law Judge, who may modify
in 30 calendar days of the date of mail- the original notice or subsequently set
ing or other service of the prepenalty hearing dates. All requests for a change
notice pursuant to § 515.702(c), the re- in the time or place of a hearing must
spondent may file a written request for be received in the Administrative Law
an agency hearing conducted pursuant Judge’s chambers and served upon the
to this section, to present the respond- parties no later than 15 working days
ent’s defenses to the imposition of a before the scheduled hearing date.
penalty and/or forfeiture and to offer (2) The hearing shall be conducted in
any other information for inclusion, if a manner consistent with 5 U.S.C. 554–
found admissible pursuant to 557, pursuant to section 1710(c) of the
§ 515.715(a), into the agency record prior Cuban Democracy Act of 1992 (22 U.S.C.
to a final determination concerning the 6001–6010) and section 16 of the Trading
imposition of a penalty and/or for- with the Enemy Act (50 U.S.C. App. 16).
feiture. (b) Powers. The Administrative Law
(b) Content of written response. If an Judge shall have all powers necessary
agency hearing is requested by the re- to conduct the hearing, consistent with
spondent or by the respondent’s coun- 5 U.S.C. 554–557, including the following
sel, the written hearing request must powers:
be accompanied by a written response (1) To administer oaths and affirma-
to the prepenalty notice containing the tions;
information required by § 515.703(b)(1)(i) (2) To require production of records
through (iii). An untimely hearing re- or any information relative to any act
quest or written response to the or transaction subject to this part, in-
prepenalty notice constitutes a waiver cluding the imposition of sanctions
of a hearing. available under Federal Rule of Civil
(c) Signature of filings. All hearing re- Procedure 37(b)(2) (Fed. R. Civ. P.
quests, motions, responses, interrog- 37(b)(2), 28 U.S.C.) for a party’s failure
atories, requests for deposition tran- to comply with discovery requests;
scripts, requests for protective orders, (3) To receive relevant and material
and all other filings relating to re- evidence and to rule upon the admis-
quests for and responses to discovery sion of evidence and offers of proof;
or pertaining to the hearing process, (4) To take or cause depositions to be
must be signed by each requesting taken as authorized by this part;
party or, if represented, by each par- (5) To regulate the course of the
ty’s counsel. hearing and the conduct of the parties
(d) Computation of time—(1) Final date and their counsel;
on weekend or holiday. Whenever the (6) To hold scheduling or prehearing
final date for any requirement of this conferences as deemed necessary;
part falls on a Saturday, Sunday, Fed- (7) To consider and rule upon all pro-
eral holiday, or other day on which the cedural and other motions appropriate
Office of Foreign Assets Control is not in an adjudicatory proceeding, pro-
open for the transaction of business vided that only the Secretary or the
during normal working hours, the time Secretary’s designee shall have the
for filing will be extended to the close power to grant any motion to dismiss
of business on the next working day. the proceeding or to decide any other

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Office of Foreign Assets Control, Treasury § 515.706

motion that results in a final deter- resentation, including the issuance of


mination of the merits of the pro- an order limiting the scope of represen-
ceeding; tation or disqualifying an individual
(8) To prepare and present to the Sec- from appearing in a representative ca-
retary or to the Secretary’s designee a pacity for the duration of the pro-
recommended decision as provided in ceeding.
§§ 515.711(d) and 515.716(e); (e) Ex parte communications—(1) Defi-
(9) To recuse himself on motion made nition. The term ex parte communication
by a party or on the Administrative means any material oral or written
Law Judge’s own motion; communication not on the public
(10) To establish time, place, and record concerning the merits of an ad-
manner limitations on the attendance judicatory proceeding with respect to
of the public and the media for any which reasonable prior notice to all
public hearing; parties is not given, on any material
(11) To perform all necessary or ap- matter or proceeding covered by these
propriate measures to discharge the regulations that takes place between:
duties of an Administrative Law Judge; (i) A party to the proceeding, a par-
and ty’s counsel, or any other individual;
(12) To set fees and expenses for wit- and
nesses, including expert witnesses. (ii) The Administrative Law Judge
(c) Appearance and practice in a civil handling that proceeding, or the Sec-
penalty hearing—(1) Appearance before retary, or the Secretary’s designee.
an Administrative Law Judge by counsel. (2) Exceptions. (i) A request to learn
Any member in good standing of the the status of the proceeding does not
bar of the highest court of any state, constitute an ex parte communication;
commonwealth, possession, or terri- and
tory of the United States, or the Dis- (ii) Settlement inquiries and discus-
trict of Columbia may represent re- sions do not constitute ex parte com-
spondents upon written notice to the munications.
Administrative Law Judge in a civil (3) Prohibition on ex parte communica-
penalty hearing. tions. From the time a respondent re-
(2) Appearance before an Administrative quests a hearing until the date that the
Law Judge by a nonlawyer. A respond- Secretary or the Secretary’s designee
ent may appear on his own behalf; a issues a final decision, no party, inter-
duly authorized member of a partner- ested person, or counsel therefor shall
ship may represent the partnership; a knowingly make or cause to be made
duly authorized officer, director, or an ex parte communication. The Ad-
employee of any corporation may rep- ministrative Law Judge, the Secretary,
resent that corporation upon written and the Secretary’s designee shall not
notice to the Administrative Law knowingly make or cause to be made
Judge in a civil penalty hearing. to a party, or to any interested person
(3) Office of Foreign Assets Control rep- or counsel therefor, any ex parte com-
resentation. The Office of Foreign As- munication.
sets Control shall be represented by the (4) Procedure upon occurrence of ex
Office of General Counsel of the United parte communication. If an ex parte
States Department of the Treasury. communication is received by the Ad-
(d) Conflicts of interest—(1) Conflict of ministrative Law Judge, the Adminis-
interest in representation. No individual trative Law Judge shall cause all such
shall appear as counsel for a party in a written communication (or, if the com-
proceeding conducted pursuant to this munication is oral, a memorandum
subpart if it reasonably appears that stating the substance of the commu-
such representation may be materially nication) to be placed on the record of
limited by that counsel’s responsibil- the proceeding and served on all par-
ities to a third person, or by counsel’s ties. All parties to the proceeding shall
own interests. have an opportunity, within 10 cal-
(2) Corrective measures. The Adminis- endar days of the receipt of service of
trative Law Judge may take corrective the notice or of receipt of a memo-
measures at any stage of a proceeding randum of the ex parte communica-
to cure a conflict of interest in rep- tion, to file responses thereto and to

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§ 515.707 31 CFR Ch. V (7–1–02 Edition)

recommend any sanctions, in accord- Law Judge transmit the written deci-
ance with paragraph (e)(5) of this sec- sion to the parties by facsimile trans-
tion, appropriate under the cir- mission, courier, or other expedited
cumstances, or may file an interlocu- means in addition to service of the de-
tory appeal with the Secretary or the cision via the U.S. Postal Service by
Secretary’s designee. registered or certified mail, return re-
(5) Sanctions. Any party to the pro- ceipt requested. Such requests must be
ceeding, a party’s counsel, or any other supported by a written statement of
individual, who makes a prohibited ex need for expedited delivery. Timely fil-
parte communication, or who encour- ing of the interlocutory appeal shall be
ages or solicits another to make any determined by the date stated on the
such communication, may be subject date–stamped registered or certified
to any appropriate sanction or sanc- mail postal receipt.
tions imposed by the Administrative (c) Manner of filing. Interlocutory ap-
Law Judge for good cause shown, or peals to the Secretary or the Sec-
that may be imposed upon interlocu- retary’s designee must be filed by fac-
tory appeal taken to the Secretary or simile transmission to 202/622–1188, cou-
the Secretary’s designee, including, but rier, or other expedited means, and
not limited to, exclusion from the sent concurrently by registered or cer-
hearing and an adverse ruling on the tified mail, return receipt requested, to
issue which is the subject of the pro- the Secretary’s Office, U.S. Treasury
hibited communication. Department, 1500 Pennsylvania Ave-
(f) Time limits. Except as provided nue, NW., Washington, DC 20220, with
elsewhere in this subpart, the Adminis- the envelope prominently marked ‘‘At-
trative Law Judge shall establish all tention: OFAC Interlocutory Appeal.’’
time limits for filings with regard to Expedited service must also be made
hearings conducted pursuant to this upon the Administrative Law Judge
subpart, except for decisions on inter- and all parties or, if represented, their
locutory appeals filed with the Sec- counsel, with certified copies sent con-
retary or the Secretary’s designee. currently by registered or certified
(g) Failure to appear. The unexcused
mail, return receipt requested.
failure of a respondent to appear in
person at a hearing or to have duly au- § 515.708 Settlement during hearing
thorized counsel appear in respondent’s proceedings.
place constitutes a waiver of the re-
spondent’s right to a hearing and is Any party may, at any time during
deemed an admission of the violation the hearing, unilaterally submit writ-
alleged. Without further proceedings or ten offers or proposals for settlement
notice to the respondent, the Adminis- of a proceeding to the Secretary or the
trative Law Judge shall enter a finding Secretary’s designee, at the address
that the right to a hearing was waived, listed in § 515.707(c). Submission of a
and the case shall be determined pursu- written settlement offer does not pro-
ant to § 515.704. vide a basis for adjourning or otherwise
delaying all or any portion of a hear-
§ 515.707 Interlocutory appeal. ing. No settlement offer or proposal,
(a) Interlocutory appeals. When excep- nor any subsequent negotiation or res-
tions, requests for extensions, or mo- olution, is admissible as evidence in
tions, including motions for summary any hearing before this tribunal.
disposition, are denied by the Adminis-
§ 515.709 Motions.
trative Law Judge, interlocutory ap-
peals may be taken to the Secretary or (a) Written motions. Except as other-
to the Secretary’s designee for a deci- wise specifically provided herein, an
sion. application or request for an order or
(b) Filing deadline. Interlocutory ap- ruling must be made by written mo-
peals must be filed no later than 15 cal- tion, in typed format.
endar days after the matter being ap- (1) All written motions must state
pealed has been decided in writing by with particularity the relief sought and
the Administrative Law Judge. Parties must be accompanied by a proposed
may request that the Administrative order.

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Office of Foreign Assets Control, Treasury § 515.710

(2) No oral argument may be held on tion. The Administrative Law Judge
written motions unless directed by the may allow a rejoinder to responses for
Administrative Law Judge. Written good cause shown. If a rejoinder is per-
memoranda, briefs, affidavits, and mitted, it must be filed within 15 cal-
other relevant material and documents endar days of the date the response was
may be filed in support of or in opposi- filed and served upon all parties.
tion to a motion. (2) The failure of a party to oppose a
(b) Oral motions. A motion may be written motion or an oral motion made
made orally on the record unless the on the record is deemed to be consent
Administrative Law Judge directs that by that party to the entry of an order
such motion be made in writing. substantially in the form of any pro-
(c) Filing of motions—(1) In general. posed order accompanying the motion.
Motions by respondents must be filed (e) Dilatory motions. Frivolous, dila-
with the Administrative Law Judge tory, or repetitive motions are prohib-
and served upon the Office of the Chief ited. The filing of such motions may
Counsel, Foreign Assets Control, U.S. form the basis for sanctions.
Treasury Department, 1500 Pennsyl-
vania Avenue, NW., Washington, DC § 515.710 Discovery.
20220, with the envelope prominently
marked ‘‘Urgent: Annex—Room 3133,’’ (a) In general. The availability of in-
unless otherwise directed by the Ad- formation and documents through dis-
ministrative Law Judge. Motions by covery is subject to the agency’s asser-
the Office of Foreign Assets Control tion of privileges available to OFAC
must be filed with the Administrative and/or to the Treasury and to the ap-
Law Judge and with each respondent or plication of all exemptions afforded the
respondent’s counsel. Motions may also agency pursuant to the Freedom of In-
be concurrently sent by facsimile formation Act (5 U.S.C. 552(b)(1)
transmission, courier, or other expe- through (9)) and the Privacy Act (5
dited means. U.S.C. 552a) to all facets of discovery,
(2) Interlocutory appeals. Motions re- including interrogatories, depositions
lated to interlocutory appeals to the that seek the release of trade secrets,
Secretary or the Secretary’s designee proprietary materials, third–party con-
must be filed by facsimile transmission fidential and/or commercially sensitive
to 202/622–1188, by courier, or by other materials, placement of information,
expedited means, and sent concur- documents and/or materials under seal
rently by registered or certified mail, and/or protective order, and interlocu-
return receipt requested, to the Sec- tory appeals to the Secretary or the
retary’s Office, U.S. Treasury Depart- Secretary’s designee from any decision
ment, 1500 Pennsylvania Avenue, NW., of the Administrative Law Judge.
Washington, DC 20220, with the enve- (b) Types of discovery. Parties may ob-
lope prominently marked ‘‘Attention: tain discovery by one or more of the
OFAC Interlocutory Appeal.’’ Expe- following methods: depositions upon
dited service must also be made upon oral examination or written questions;
the Administrative Law Judge and all written interrogatories; production of
parties or, if represented, their counsel, documents or other evidence for in-
with certified copies sent concurrently spection; and requests for admission.
by registered or certified mail, return All depositions of Federal employees
receipt requested. must take place in Washington, DC, at
(d) Responses. (1) Any party may file the U.S. Treasury Department or at
a written response to a motion within the location where the Federal em-
20 calendar days of the date of its mail- ployee to be deposed performs his du-
ing, by registered or certified mail pur- ties, whichever the Federal employee’s
suant to this subpart. If directed by the supervisor or the Office of the Chief
Administrative Law Judge, the time Counsel, Foreign Assets Control shall
period in which to respond may be deem appropriate. All depositions of
shortened or extended. The Adminis- Federal employees shall be held at a
trative Law Judge may allow each mutually agreed upon date and time,
party to file a response before finally and for a mutually agreed upon length
ruling upon any oral or written mo- of time.

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§ 515.711 31 CFR Ch. V (7–1–02 Edition)

(c) Interrogatories. Respondent’s in- U.S.C. 552a) and the Freedom of Infor-
terrogatories must be served upon the mation Act (5 U.S.C. 552(b)(1) through
Office of the Chief Counsel, Foreign As- (9)).
sets Control within 20 calendar days of (f) Updating discovery. Whenever a
respondent’s written request for a party receives new or additional infor-
hearing. The Office of Foreign Assets mation or documentation, all informa-
Control’s interrogatories must be tion produced, and all information re-
served within 30 calendar days of the quired to be provided pursuant to the
receipt of service of respondent’s inter- discovery and hearing process, must
rogatories or within 30 calendar days of automatically be updated. The Admin-
the receipt of respondent’s written re- istrative Law Judge may impose sanc-
quest for a hearing if no interrog- tions for failure to update, including
atories are filed by respondent by that prohibiting opposition to claims or de-
time. Parties have 30 calendar days to fenses raised, striking pleadings or
respond to interrogatories from the staying proceedings, dismissing the ac-
date interrogatories are received. In- tion or any part thereof, rendering a
terrogatories shall be limited to 20 judgment by default, and holding a
questions only. Each subpart, section, party in contempt.
or other designation of a part of a ques- (g) Time limits. All discovery, includ-
tion shall be counted as one complete ing all responses to discovery requests,
question in computing the permitted 20 shall be completed no later than 20 cal-
question total. Where more than 20 endar days prior to the date scheduled
questions are served upon a party, the for the commencement of the hearing.
receiving party may determine which No exceptions to this time limit shall
of the 20 questions the receiving party be permitted, unless the Administra-
shall answer. tive Law Judge finds on the record that
(d) Scope. Parties may obtain dis- good cause exists for waiving the re-
covery regarding any matter not privi- quirements of this paragraph (g).
leged which has material relevance to
the merits of the pending action. It is § 515.711 Summary disposition.
not a ground for objection that the in- (a) In general. The Administrative
formation sought will be inadmissible Law Judge shall recommend that the
at the hearing if the information Secretary or the Secretary’s designee
sought appears reasonably calculated issue a final order granting a motion
to lead to discovery of admissible evi- for summary disposition if the facts of
dence. The Administrative Law Judge the record show that:
may make any order which justice re- (1) There is no genuine issue as to
quires to ensure that requests are not any material fact; and
unreasonable, oppressive, excessive in (2) The moving party is entitled to a
scope or unduly burdensome, including decision in its favor as a matter of law.
the issuance of an order to show cause (b) Filing of motions and responses. (1)
why a particular discovery request is Any party who believes that there is no
justified upon the motion of the object- genuine issue of material fact to be de-
ing party. termined and that such party is enti-
(e) Privileged matter. Privileged docu- tled to a decision as a matter of law
ments are not discoverable. Privileges may move at any time for summary
include, inter alia, the attorney–client disposition in its favor of all or any
privilege, attorney work–product privi- part of the proceeding. Any party,
lege, any government’s or government within 20 calendar days after service of
agency’s deliberative–process or classi- such a motion, or within such time pe-
fied information privilege, including riod as allowed by the Administrative
materials classified pursuant to Execu- Law Judge, may file a response to such
tive Order 12958 (3 CFR, 1995 Comp., p. motion.
333) and any future Executive orders (2) A motion for summary disposition
that may be issued relating to the must be accompanied by a statement of
treatment of national security infor- the material facts as to which the mov-
mation, and all materials and informa- ing party contends there is no genuine
tion exempted from release to the pub- issue. Such motion must be supported
lic pursuant to the Privacy Act (5 by documentary evidence, which may

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Office of Foreign Assets Control, Treasury § 515.712

take the form of admissions in plead- istrative Law Judge has determined
ings, stipulations, depositions, tran- that summary disposition is warranted
scripts, affidavits, and any other evi- will be addressed in the recommended
dentiary materials that the moving decision filed at the conclusion of the
party contends support its position. hearing.
The motion must also be accompanied
by a brief containing the points and au- § 515.712 Prehearing conferences and
thorities in support of the moving par- submissions.
ty’s arguments. Any party opposing a (a) Prehearing conferences. The Ad-
motion for summary disposition must ministrative Law Judge may, on his or
file a statement setting forth those her own motion, or at the request of
material facts as to which such party any party for good cause shown, direct
contends a genuine dispute exists. The counsel for the parties to meet with
opposition must be supported by evi- him or her (in person, by telephone, or
dence of the same type as that sub- by teleconference) at a prehearing con-
mitted with the motion for summary ference to address any or all of the fol-
disposition and a brief containing the lowing:
points and authorities in support of the (1) Simplification and clarification of
contention that summary disposition the issues;
would be inappropriate. (2) Stipulations, admissions of fact,
(c) Hearing on motion. At the request and the contents, authenticity and ad-
of any party or on his or her own mo- missibility into evidence of documents;
tion, the Administrative Law Judge (3) Matters of which official notice
may hear oral argument on the motion may be taken;
for summary disposition. (4) Limitation of the number of wit-
(d) Decision on motion. Following re- nesses;
ceipt of a motion for summary disposi- (5) Summary disposition of any or all
tion and all responses thereto, the Ad- issues;
ministrative Law Judge shall deter- (6) Resolution of discovery issues or
mine whether the moving party is enti- disputes; and
tled to summary disposition. If the Ad- (7) Such other matters as may aid in
ministrative Law Judge determines the orderly disposition of the pro-
that summary disposition is war- ceeding.
ranted, he or she shall submit a rec- (b) Prehearing orders. At, or within a
ommended decision to that effect to reasonable time following the conclu-
the Secretary. If the Administrative sion of, any prehearing conference, the
Law Judge finds that no party is enti- Administrative Law Judge shall serve
tled to summary disposition, he or she on each party an order setting forth
shall make a ruling denying the mo- any agreements reached and any proce-
tion. dural determinations made.
(e) Interlocutory appeal. Following re- (c) Prehearing submissions. Within 40
ceipt of the Administrative Law calendar days of the receipt of respond-
Judge’s recommended decision relating ent’s request for a hearing or at a time
to summary disposition, each party has set by the Administrative Law Judge,
the right to an interlocutory appeal to the Office of Foreign Assets Control
the Secretary or the Secretary’s des- shall serve on the respondent and upon
ignee. The interlocutory appeal must the Administrative Law Judge, the fol-
be filed within 20 calendar days imme- lowing:
diately following the Administrative (1) Stipulations of fact, if any;
Law Judge’s recommended decision. (2) A list of the exhibits to be intro-
(f) Partial summary disposition. If the duced at the hearing along with a copy
Administrative Law Judge determines of each exhibit; and
that a party is entitled to summary (3) A list of witnesses to be called to
disposition as to certain claims only, testify at the hearing, including the
the Administrative Law Judge shall name and address of each witness and a
defer submission of a recommended de- short summary of the expected testi-
cision as to those claims. A hearing on mony of each witness.
the remaining issues must be ordered (d) Deadline for respondent’s and the
and those claims for which the Admin- other parties’ submissions. Unless for

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§ 515.713 31 CFR Ch. V (7–1–02 Edition)

good cause shown the Administrative might reasonably lead to a disclosure,


Law Judge permits an extension of contrary to Executive Order 12958 or
time to file, the respondent and the other Executive orders concerning dis-
other parties shall have 20 calendar closure of information, U.S. Treasury
days from the date of the submission Department regulations, the Privacy
by the Office of Foreign Assets Control Act, or the Freedom of Information
of the items set forth in paragraph (c) Act.
of this section, and/or of any other par- (2) The Administrative Law Judge
ty’s service of items set forth in this shall also safeguard the security and
paragraph (d), to serve upon the Ad- integrity of any documents under seal
ministrative Law Judge and all parties, and shall take all appropriate steps to
the following: preserve the confidentiality of such
(1) Its response to stipulations of documents or any parts thereof, includ-
fact, if any; ing closing portions of the hearing to
(2) A list of the exhibits to be intro- the public. Release of any information
duced at the hearing along with a copy under seal, in any form or manner, is
of each exhibit; and subject to the same sanctions and the
(3) A list of witnesses to be called to exercise of the same authorities as are
testify at the hearing, including the provided with respect to ex parte com-
name and address of each witness and a munications under paragraph (e)(5) of
short summary of the expected testi- this section.
mony of each witness.
(3) Should the Administrative Law
(e) Effect of failure to comply. No wit-
Judge deny placement of any docu-
ness may testify and no exhibits may
ments under seal or under protective
be introduced at the hearing if such
order, any party, and any person whose
witness or exhibit is not listed in the
prehearing submissions pursuant to documents or materials are at issue,
paragraphs (c) and (d) of this section, may file an interlocutory appeal to the
except for good cause shown. Secretary or the Secretary’s designee.
In such cases the Administrative Law
§ 515.713 Public hearings. Judge must not release or expose any
of the records or documents in question
(a) In general. All hearings shall be
to the public or to any other parties for
open to the public, unless the Adminis-
trative Law Judge, at his or her discre- a period of 20 calendar days from the
tion, determines at any time prior to date of the Administrative Law Judge’s
or during the hearing, that holding an ruling, in order to permit a petitioner
open hearing would be contrary to the the opportunity either to withdraw the
public interest. Within 20 calendar days records and documents or to file an in-
of service of the notice of hearing from terlocutory appeal with the Secretary
the Administrative Law Judge, any or the Secretary’s designee requesting
party may file with the Administrative an order that the records be placed
Law Judge a request for a closed hear- under seal.
ing, and any party may file a pleading (4) Upon settlement, final decision, or
in reply to such a request. Failure to motion to the Administrative Law
file a request or a reply is deemed a Judge for good cause shown, all mate-
waiver of any objections regarding rials (including all copies) under seal
whether the hearing will be public or or protective order shall be returned to
closed. the respective parties, except when it
(b) Filing document under seal. (1) The may be necessary to retain a record
Office of Foreign Assets Control may until the judicial process is completed.
file any document or any part of a doc- (5) Written notice of all requests for
ument under seal if disclosure of the release of protected documents or ma-
document would be inconsistent with terials shall be given to the parties reg-
the protection of the public interest or istered with the Administrative Law
if justice requires protection of any Judge at least 20 calendar days prior to
person, including a source or a party, any permitted release and prior to any
from annoyance, threat, oppression, or access not specifically authorized
undue burden or expense, or the disclo- under the protective order. A copy of
sure of the information would be, or all requests for information, including

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Office of Foreign Assets Control, Treasury § 515.715

the name, address, and telephone num- trative Law Judge shall serve notice
ber of the requester, shall be provided upon all parties, at the addresses pro-
to the petitioner. Each request for ac- vided by the parties pursuant to
cess to protected material must also § 515.703(b)(1)(iii), that the certified
provide the names, addresses, and tele- transcript, together with all hearing
phone numbers of all persons rep- exhibits and exhibits introduced but
resented by the requester, including not admitted into evidence at the hear-
those on whose behalf the requester ing, has been filed with the Adminis-
seeks access to protected information. trative Law Judge.
The Administrative Law Judge shall
impose sanctions provided under § 515.715 Evidence.
§ 515.706(e)(4) and (e)(5) for failure to (a) Admissibility. (1) Except as is oth-
provide this information. erwise set forth in this section, evi-
dence that is relevant and material is
§ 515.714 Conduct of hearings.
admissible to the fullest extent author-
(a) In general—(1) Overview. Hearings ized by the Administrative Procedure
shall be conducted to provide a fair and Act and other applicable law.
expeditious presentation of the rel- (2) Evidence may be excluded if it is
evant disputed issues and facts. Each misleading or its probative value is
party has the right to present its case substantially outweighed by the danger
or defense by oral and documentary of unfair prejudice or confusion of the
evidence and to conduct such cross ex- issues, or considerations of undue
amination as may be required for full delay, waste of time, or needless pres-
disclosure of the relevant facts. entation of cumulative evidence.
(2) Order of hearing. The Office of For- (3) Evidence that would be inadmis-
eign Assets Control shall present its sible under the Federal Rules of Evi-
case–in–chief first, unless otherwise or- dence need not be deemed or ruled to
dered in advance by the Administrative be inadmissible in a proceeding con-
Law Judge or otherwise expressly spec- ducted pursuant to this subpart if such
ified by law or regulation. The Office of evidence is relevant and material, and
Foreign Assets Control shall be the not unduly repetitive.
first party to present an opening state-
(b) Official notice. (1) Official notice
ment and a closing statement and may
may be taken of any material fact
make a rebuttal statement after the
which may be judicially noticed by a
respondent’s closing statement.
United States district court.
(3) Stipulations. Unless the Adminis-
trative Law Judge directs otherwise, (2) All matters officially noticed by
all stipulations of fact and law pre- the Administrative Law Judge shall
viously agreed upon by the parties, and appear on the record.
all documents, the admissibility of (3) If official notice is requested or
which has been previously stipulated, taken of any material fact, the parties,
will be admitted into evidence upon upon timely request, shall be afforded
commencement of the hearing. an opportunity to object.
(b) Transcript. A record of the hearing (c) Duplicate copies. A duplicate copy
shall be made by manual or electronic of a document is admissible to the
means, including through the use of same extent as the original, unless a
audio recorded diskettes or audio–vis- genuine issue is raised as to whether
ual cassettes, and transcribed unless the copy is in some material respect
the Administrative Law Judge rules not a true and legible copy of the origi-
otherwise. The transcript shall be nal.
made available to any party upon pay- (d) Objections to admissibility of evi-
ment of the cost thereof. The Adminis- dence. Objections to the admissibility
trative Law Judge shall have authority of evidence must be timely made and
to order the record corrected, either rulings on all objections must appear
upon a motion to correct, upon a mo- on the record. Failure to object to ad-
tion to stipulate by the parties for mission of evidence or to any ruling
good cause shown, or following notice constitutes a waiver of the objection.
to the parties upon the Administrative (e) Rejected exhibits. The Administra-
Law Judge’s own motion. The Adminis- tive Law Judge shall retain rejected

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§ 515.716 31 CFR Ch. V (7–1–02 Edition)

exhibits, adequately marked for identi- brief in advance of the other party’s fil-
fication, in the event of an interlocu- ing of its brief.
tory appeal. (e) Recommended decision and filing of
(f) Stipulations. The parties may stip- record. Within 45 calendar days after
ulate as to any relevant matters of fact expiration of the time allowed for fil-
or to the authenticity of any relevant ing reply briefs, the Administrative
documents. Such stipulations may be Law Judge shall file with and certify to
received into evidence at a hearing and the Secretary or the Secretary’s des-
are binding on the parties with respect ignee the record of the proceeding and
to the matters therein stipulated. the decision. The record must include
(g) Depositions of unavailable wit- the Administrative Law Judge’s rec-
nesses. If a witness is unavailable to ommended decision, including a deter-
testify at a hearing, and that witness mination either that there was no vio-
has testified in a deposition within the lation by the person named in the
United States to which all parties to
prepenalty notice, or that there was a
the proceeding have received timely
violation by the person named in the
notice and an opportunity to partici-
prepenalty notice, and the rec-
pate, a party may offer as evidence all
or any part of the transcript of the dep- ommended monetary penalty and/or
osition, including deposition exhibits. civil forfeiture and/or other disposition
All costs of depositions shall be borne available to the Office of Foreign As-
by the party requesting the deposition. sets Control. In addition to the pro-
posed decision, the record must include
§ 515.716 Proposed decisions; rec- all prehearing and hearing transcripts,
ommended decision of Administra- exhibits, and rulings, and the motions,
tive Law Judge; final decision. briefs, memoranda, and other sup-
(a) Proposed decisions. Any party may porting papers filed in connection with
file with the Administrative Law Judge the hearing. The Administrative Law
a proposed decision within 30 calendar Judge shall have the recommended de-
days after the parties have received no- cision served upon each party.
tice that the transcript has been filed (f) Exceptions to the recommended deci-
with the Administrative Law Judge, sion. When the Administrative Law
unless otherwise ordered by the Admin- Judge has issued his recommended de-
istrative Law Judge. cision, the Administrative Law Judge
(b) Reliance on relevant authorities. or his representative shall contact each
The proposed decision must be sup- party by telephone at the telephone
ported by citation to relevant authori- number provided by each party pursu-
ties and by transcript page references ant to § 515.703(b)(1)(iii). Within 3 cal-
to any relevant portions of the record. endar days of telephoning the parties,
At the same time the proposed decision the recommended decision shall be
is filed, a post–hearing brief may be mailed by the Administrative Law
filed in support. The post–hearing brief
Judge to the parties. A party may file
shall be filed either as part of the same
written exceptions to the recommended
document or in a separate document.
decision with the Secretary or the Sec-
(c) Reply briefs. Reply briefs may be
filed within 15 calendar days after the retary’s designee within 30 calendar
date on which the parties’ proposed de- days of the date the telephone call is
cision is due. Reply briefs must be placed by the Administrative Law
strictly limited to responding to new Judge or his representative. A sup-
matters, issues, or arguments raised in porting brief may be filed at the time
another party’s papers. A party who the exceptions are filed.
has not filed a proposed decision or a (g) Final decision. The final decision
post–hearing brief may not file a reply of the Secretary or the Secretary’s des-
brief. ignee shall be based on a review of the
(d) Simultaneous filing required. Ab- Administrative Law Judge’s rec-
sent a showing of good cause for the ommended decision and the entire
use of another procedure, the Adminis- record of the proceeding. The final
trative Law Judge shall not order the written decision shall be provided to
filing by any party of any brief or reply all parties.

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Office of Foreign Assets Control, Treasury § 515.803

§ 515.717 Judicial review. (1) Entry for consumption (including


Any person may seek judicial review any appraisement entry, any entry of
as provided under 5 U.S.C. 702 for a pen- goods imported in the mails, regardless
alty and/or forfeiture imposed pursuant of value, and any other informal en-
to this part. tries);
(2) Entry for immediate exportation;
§ 515.718 Referral to United States De- (3) Entry for transportation and ex-
partment of Justice; administrative portation;
collection measures. (4) Withdrawal from warehouse;
In the event that the respondent does (5) Transfer or withdrawal from a for-
not pay the penalty imposed pursuant eign-trade zone; or
to this part within 30 calendar days of (6) Manipulation or manufacture in a
the mailing of the written notice of the warehouse or in a foreign-trade zone,
imposition of the penalty, the matter unless either:
may be referred for administrative col- (i) The merchandise was imported
lection measures or to the United prior to 12:01 a.m., February 7, 1962, or
States Department of Justice for ap- (ii) A specific license pursuant to this
propriate action to recover the penalty part is presented, or
in a civil suit in a Federal district (iii) Instructions from the Office of
court. Foreign Assets Control, authorizing
the transaction are received, or
Subpart H—Procedures (iv) The original of an appropriate
certificate of origin as defined in
§ 515.801 Procedures. § 515.536(d) is presented.
For license application procedures (b) Whenever a specific license is pre-
and procedures relating to amend- sented to a collector of customs in ac-
ments, modifications, or revocations of cordance with this section, one addi-
licenses; administrative decisions; tional legible copy of the entry, with-
rulemaking; and requests for docu- drawal or other appropriate document
ments pursuant to the Freedom of In- with respect to the merchandise in-
formation and Privacy Acts (5 U.S.C. volved shall be filed with the collector
552 and 552a), see subpart D of part 501 of customs at the port where the trans-
of this chapter. action is to take place. Each copy of
any such entry, withdrawal or other
[62 FR 45106, Aug. 25, 1997] appropriate document, including the
additional copy, shall bear plainly on
§ 515.802 Delegation by the Secretary
of the Treasury. its face the number of the license pur-
suant to which it is filed. The original
Any action under § 515.201 which the copy of the specific license shall be pre-
Secretary of the Treasury is authorized sented to the collector in respect of
to take pursuant to Proclamation 3447 each such transaction and shall bear a
or the Trading With the Enemy Act notation in ink by the licensee or per-
may be taken by the Director, Office of son presenting the license showing the
Foreign Assets Control, or by any description, quantity and value of the
other person to whom the Secretary of merchandise to be entered, withdrawn
the Treasury has delegated authority or otherwise dealt with. This notation
so to act. should be so placed and so written that
[28 FR 6974, July 9, 1963. Redesignated at 62 there will exist no possibility of con-
FR 45106, Aug. 25, 1997] fusing it with anything placed on the
license at the time of its issuance. If
§ 515.803 Customs procedures; mer- the license in fact authorizes the entry,
chandise specified in § 515.204. withdrawal or other transaction with
(a) With respect to merchandise spec- regard to the merchandise the col-
ified in § 515.204 (including nickel-bear- lector, or other authorized customs
ing materials presumptively subject employee, shall verify the notation by
thereto) whether or not such merchan- signing or initialing it after first assur-
dise has been imported into the United ing himself that it accurately describes
States, collectors of customs shall not the merchandise it purports to rep-
accept or allow any: resent. The license shall thereafter be

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§ 515.901 31 CFR Ch. V (7–1–02 Edition)

returned to the person presenting it such transaction, demand an additional


and the additional copy of the entry, copy of each withdrawal or other ap-
withdrawal or other appropriate docu- propriate document, which copy shall
ment shall be forwarded by the col- be promptly forwarded by the collector
lector to the Foreign Assets Control. to the Office of Foreign Assets Control,
(c)(1) Whenever the original of an ap- Treasury Department, Washington, DC
propriate certificate or origin as de- 20220, with an endorsement thereon
fined in § 515.536(d) is presented to a reading:
collector of customs in accordance This document has been accepted pursuant
with this section, an additional legible to § 515.808(c) (2) of the Cuban Assets Control
copy of the entry, withdrawal or other Regulations. Appropriate certificate of ori-
appropriate document with respect to gin No.lllllllfrom (country).
the merchandise involved shall be filed
with the collector of customs at the When the final transaction has been ef-
port where the transaction is to take fected under the certificate of origin,
place. Each copy of the entry, with- the original shall be taken up and at-
drawal, or other appropriate document, tached to the entry and forwarded as in
including the additional copy, shall this paragraph.
(d) Whenever a person shall present
bear plainly on its face the following
an entry, withdrawal or other appro-
statement: ‘‘This document is pre-
priate document affected by this sec-
sented under the provisions of § 515.536
tion and shall assert that no specific
(c) of the Cuban Assets Control Regula-
Foreign Assets Control license or ap-
tions.’’ The original of the certificate
propriate certificate of origin as de-
of origin shall not be returned to the
fined in § 515.536 (d) is required in con-
person presenting it. It shall be se-
nection therewith, the collector of cus-
curely attached to the additional copy
toms shall withhold action thereon and
required by this subparagraph and
shall advise such person to commu-
shall be forwarded by the collector to
nicate directly with the Office of For-
the Office of Foreign Assets Control,
eign Assets Control to request that in-
Treasury Department, Washington, DC
structions be issued to the collector to
20220. Collectors may forward such doc-
authorize him to take action with re-
uments weekly or more often if the
gard thereto.
volume warrants.
(2) If the original of an appropriate [30 FR 15371, Dec. 14, 1965, as amended at 57
certificate of origin is properly pre- FR 1388, Jan. 14, 1992. Redesignated at 62 FR
sented to a collector of customs with 45106, Aug. 25, 1997]
respect to a transaction which is the
first of a series of transactions which Subpart I—Miscellaneous
may be allowed in connection there- Provisions
with under paragraph (a)(6)(iv) of this
section (as, for example, where mer- § 515.901 Paperwork Reduction Act no-
chandise has been entered in a bonded tice.
warehouse and an appropriate certifi- Collection of information on TDF 90–
cate of origin is presented which re- 22.39, ‘‘Declaration, Travel to Cuba,’’
lates to all of the merchandise entered has been approved by the Office of
therein but the importer desires to Management and Budget (‘‘OMB’’)
withdraw only part of the merchandise under the Paperwork Reduction Act (44
in the first transaction), the collector U.S.C. 3507(j)) and assigned control
shall so note on the original of the ap- number 1505–0118. For approval by OMB
propriate certificate of origin and re- under the Paperwork Reduction Act of
turn it to the importer. In addition, information collections relating to rec-
the collector shall endorse his perti- ordkeeping and reporting require-
nent records so as to record what mer- ments, to licensing procedures (includ-
chandise is covered by the appropriate ing those pursuant to statements of li-
certificate of origin presented. The col- censing policy), and to other proce-
lector may thereafter allow subsequent dures, see § 501.901 of this chapter. An
authorized transactions on presen- agency may not conduct or sponsor,
tation of the certificate of origin. The and a person is not required to respond
collector shall, with respect to each to, a collection of information unless it

610

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Office of Foreign Assets Control, Treasury Pt. 535

displays a valid control number as- Subpart C—General Definitions


signed by OMB.
535.301 Iran; Iranian Entity.
[62 FR 45106, Aug. 25, 1997] 535.308 Person.
535.310 Transfer.
535.311 Property; property interests.
PART 535—IRANIAN ASSETS 535.312 Interest.
CONTROL REGULATIONS 535.316 License.
535.317 General license.
Subpart A—Relation of This Part to Other 535.318 Specific license.
Laws and Regulations 535.320 Domestic bank.
535.321 United States; continental United
Sec. States.
535.101 Relation of this part to other laws 535.329 Person subject to the jurisdiction of
and regulations. the United States.
535.333 Properties.
Subpart B—Prohibitions 535.334 Act of the Government of Iran.
535.335 Claim arising out of events in Iran.
535.201 Transactions involving property in 535.337 Funds.
which Iran or Iranian entities have an in-
terest. Subpart D—Interpretations
535.202 Transactions with respect to securi-
ties registered or inscribed in the name 535.401 Reference to amended sections.
of Iran. 535.402 Effect of amendment of sections of
535.203 Effect of transfers violating the pro- this part or of other orders, etc.
visions of this part. 535.403 Termination and acquisition of an
535.208 Evasions; effective date. interest of Iran or an Iranian entity.
535.210 Direction for establishing an escrow 535.413 Transfers between dollar accounts
agreement. held for foreign banks.
535.211 Direction involving transfers by the 535.414 Payments to blocked accounts under
Federal Reserve Bank concerning certain § 535.508.
Iranian property. 535.415 Payment by Iranian entities of obli-
535.212 Direction to transfer property in gations to persons within the United
which Iran or an Iranian entity has an States.
interest by branches and offices of 535.416 Letters of credit.
United States banks located outside the 535.420 Transfers of accounts under § 535.508
United States. from demand to interest-bearing status.
535.213 Direction involving property held by 535.421 Prior contractual commitments not
offices of banks in the United States in a basis for licensing.
which Iran or an Iranian entity has an 535.433 Central Bank of Iran.
interest. 535.437 Effect on other authorities.
535.214 Direction involving other financial 535.438 Standby letters of credit, perform-
assets in which Iran or an Iranian entity ance or payment bonds and similar obli-
has an interest held by any person sub- gations.
ject to the jurisdiction of the United 535.440 Commercially reasonable interest
States. rates.
535.215 Direction involving other properties 535.441 Settlement Agreement regarding
in which Iran or an Iranian entity has an small claims.
interest held by any person subject to
the jurisdiction of the United States. Subpart E—Licenses, Authorizations and
535.216 Prohibition against prosecution of Statements of Licensing Policy
certain claims.
535.217 Blocking of property of the former 535.502 Effect of license or authorization.
Shah of Iran and of certain other Iranian 535.503 Exclusion from licenses and author-
nationals. izations.
535.218 Prohibitions and nullifications with 535.504 Certain judicial proceedings with re-
respect to property described in §§ 535.211, spect to property of Iran or Iranian enti-
535.212, 535.213, 535.214 and 535.215 and ties.
standby letters of credit. 535.508 Payments to blocked accounts in do-
535.219 Discharge of obligation by compli- mestic banks.
ance with this part. 535.528 Certain transactions with respect to
535.220 Timing of transfers required by Iranian patents, trademarks and copy-
§ 535.212. rights authorized.
535.221 Compliance with directive provi- 535.531 Payment of certain checks and
sions. drafts.
535.222 Suspension of claims eligible for 535.532 Completion of certain securities
Claims Tribunal. transactions.

611

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