Restricting Additional Exports and Reexports to Cuba
Final rule.
CFR Part: "15 CFR Parts 734, 740, and 746"
RIN Number: "RIN 0694-AH90"
Citation: "84 FR 56117"
Document Number: "Docket No. 191011-0062"
Page Number: "56117"
"Rules and Regulations"
Agency: "
SUMMARY: In this final rule, the
DATES: This rule is effective
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION:
Background On
On
The Cuban government has generated revenue or otherwise benefited from certain exports and reexports to
Specific Amendments in This Rule
Cuba Licensing Policy
Consistent with the embargo of
License Exception Aircraft, Vessels and Spacecraft (AVS)
Section 746.2(a)(1) of the EAR identifies the license exceptions, or portions thereof, that are available for exports and reexports to
Paragraph (a) of License Exception AVS authorizes the export or reexport to
Paragraph (d) of License Exception AVS authorizes the export or reexport to
License applications for the export or reexport of aircraft or vessels leased to or chartered by, or on the behalf of, the Cuban government, including state-owned airlines or other enterprises, will generally be denied pursuant to the licensing policy in
De Minimis> Rule
Pursuant to part 734 of the EAR, foreign-made items located abroad are subject to the EAR under specified circumstances, including when they incorporate, or are bundled or commingled with, specified levels of controlled
This rule amends
License Exception Support for the Cuban People
License Exception Support for the Cuban People (SCP) in
Paragraph (c)(1) of License Exception SCP authorizes the export or reexport to
Paragraph (d)(1) of License Exception SCP authorizes the export or reexport to
This rule also revises paragraph (e)(2) of License Exception SCP to eliminate an authorization for items to be given away for free for promotional purposes. This provision regarding such promotional items has been primarily beneficial to the Cuban government since it has a virtual monopoly on importing items into the country. However, items for use by the Cuban private sector for private sector economic activities remain eligible for paragraph (b)(1) of License Exception SCP, provided the associated terms and conditions are met. License applications for the export or reexport of promotional items to the Cuban government will be reviewed pursuant to the general policy of denial in
BIS is making these changes to License Exception SCP to ensure that the Cuban people, not the Cuban government or communist party, benefit from items exported or reexported pursuant to the license exception.
Rulemaking Requirements
1. Executive Orders 13563 and 12866 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distribute impacts, and equity). Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This final rule has been designated a "significant regulatory action," although not economically significant, under section 3(f) of Executive Order 12866.
2. This final rule is not subject to the requirements of E.O. 13771 (82 FR 9339,
3. This rule does not contain policies with Federalism implications as that term is defined under Executive Order 13132.
4. Pursuant to section 1762 of the Export Control Reform Act of 2018 (50 U.S.C. 4801-4852), enacted as part of the John S. McCain National Defense Authorization Act for Fiscal Year 2019, this action is exempt from the Administrative Procedure Act (5 U.S.C. 553) requirements for notice of proposed rulemaking, opportunity for public participation, and delay in effective date.
5. Because a notice of proposed rulemaking and an opportunity for public comment are not required to be given for this rule by 5 U.S.C. 553, or by any other law, the analytical requirements of the Regulatory Flexibility Act, 5 U.S.C.
6. Notwithstanding any other provision of law, no person may be required to respond to or be subject to a penalty for failure to comply with a collection of information, subject to the requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) (PRA), unless that collection of information displays a currently valid
List of Subjects
15 CFR Part 734
Administrative practice and procedure, Exports, Inventions and patents, Research, Science and technology.
15 CFR Part 740
Administrative practice and procedure, Exports, Reporting and recordkeeping requirements.
15 CFR Part 746
Exports, Reporting and recordkeeping requirements.
For the reasons set forth in the preamble, 15 CFR chapter VII, subchapter C, is amended as follows:
PART 734--[AMENDED]
1. The authority citation for 15 CFR part 734 is revised to read as follows:
Authority:50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50 U.S.C.
2. Section 734.4 is amended by revising the introductory text of paragraph (d) to read as follows:
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(d) 25% De Minimis Rule. Except as provided in paragraph (a) of this section and subject to the provisions of paragraph (b) of this section, the following reexports are not subject to the EAR when made to countries other than those listed in Country Group E:1 or E:2 of supplement no. 1 to part 740 of the EAR. See supplement no. 2 to this part for guidance on calculating values.
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PART 740--[AMENDED]
3. The authority citation for 15 CFR part 740 is revised to read as follows:
Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50 U.S.C.
4. Section 740.15 is amended by:
a. Revising paragraphs (a)(1)(i) and (ii), (a)(2)(i) introductory text, (a)(2)(ii) introductory text, (a)(3) introductory text, and (a)(3)(iv), (v), (vi), (vii), (viii), and (ix);
b. Adding paragraph (a)(3)(x);
c. Revising paragraphs (d)(1)(i) and (ii), (d)(2)(v), (vi), and (vii), and (d)(3)(iv);
d. Adding paragraph (d)(3)(v); and
e. Revising paragraphs (d)(4)(v), (vi), and (vii).
The revisions and additions read as follows:
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(a) * * *
(1) * * *
(i) No sale or transfer of operational control of the aircraft to a national of a destination in Country Group E:1 or E:2 (see supplement no. 1 to this part) has occurred while in
(ii) The aircraft is not departing for the purpose of sale or transfer of operational control to a national of a destination in Country Group E:1 or E:2 (see supplement no. 1 to this part); and
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(2)
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(ii) Any other operating civil aircraft of
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(3) Criteria. The following ten criteria each must be met if the flight is to qualify as a temporary sojourn. To be considered a temporary sojourn, the flight must not be for the purpose of sale or transfer of operational control. An export is for the transfer of operational control unless the exporter retains each of the following indicia of control:
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(iv) Place of maintenance. Right to perform or obtain the principal maintenance on the aircraft, which principal maintenance is conducted outside a destination in Country Group E:1 or E:2 (see supplement no. 1 to this part), under the control of a party who is not a national of any of these countries. (The minimum necessary in-transit maintenance may be performed in any country).
(v) Location of spares. Spares are not located in a destination in Country Group E:1 or E:2 (see supplement no. 1 to this part).
(vi) Place of registration. The place of registration is not changed to a destination in Country Group E:1 or E:2 (see supplement no. 1 to this part).
(vii) Transfer of technology. No technology is transferred to a national of a destination in Country Group E:1 or E:2 (see supplement no. 1 to this part), except the minimum necessary for in-transit maintenance to perform flight line servicing required to depart safely.
(viii) Color and logos. The aircraft does not bear the livery, colors, or logos of a national of a destination in Country Group E:1 or E:2 (see supplement no. 1 to this part).
(ix) Flight number. The aircraft does not fly under a flight number issued to a national of a destination in Country Group E:1 or E:2 (see supplement no. 1 to this part) as such number appears in the Official Airline Guide.
(x) Lease or charter. The aircraft is not leased to or chartered by a national of a destination in Country Group E:1 or E:2 (see supplement no. 1 to this part).
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(d) * * *
(1) * * *
(i) No sale or transfer of operational control of the vessel to a national of a destination in Country Group E:1 or E:2 (see supplement no. 1 to this part) has occurred while in
(ii) The vessel is not departing for the purpose of sale or transfer of operational control to a national of a destination in Country Group E:1 or E:2 (see supplement no. 1 to this part); and
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(2) * * *
(v) Spares for the vessel are not located in a destination in Country Group E:1 or E:2 (see supplement no. 1 to this part);
(vi) Technology is not transferred to a national of a destination in Country Group E:1 or E:2 (see supplement no. 1 to this part), except the minimum necessary in-transit maintenance to perform servicing required to depart and enter a port safely; and
(vii) The vessel does not bear the livery, colors, or logos of a national of a destination in Country Group E:1 or E:2 (see supplement no. 1 to this part).
(3) * * *
(iv) Place of maintenance. Right to perform or obtain the principal maintenance on the vessel, which principal maintenance is conducted outside a destination in Country Group E:1 or E:2 (see supplement no. 1 to this part), under the control of a party who is not a national of any of these countries. (The minimum necessary in-transit maintenance may be performed in any country).
(v) Lease or charter. The vessel is not leased to or chartered by a national of a destination in Country Group E:1 or E:2 (see supplement no. 1 to this part).
(4) * * *
(v) Spares for the vessel are not located in a destination in Country Group E:1 or E:2 (see supplement no. 1 to this part);
(vi) Technology is not transferred to a national of a destination in Country Group E:1 or E:2 (see supplement no. 1 to this part), except the minimum necessary in-transit maintenance to perform servicing required to depart and enter a port safely; and
(vii) The vessel does not bear the livery, colors, or logos of a national of a destination in Country Group E:1 or E:2 (see supplement no. 1 to this part).
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5. Section 740.21 is amended by:
a. Revising paragraphs (c)(1) and (d)(1); and
b. Removing and reserving paragraph (e)(2).
The revisions read as follows:
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(c) * * *
(1) The export or reexport to
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(d) * * *
(1) The export or reexport to
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PART 746--[AMENDED]
6. The authority citation for 15 CFR part 746 is revised to read as follows:
Authority: 50 U.S.C. 4801-4852; 50 U.S.C. 4601 et seq.; 50 U.S.C.
7. Section 746.2 is amended by revising paragraph (b)(2)(v) to read as follows:
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(b) * * *
(2) * * *
(v) Items necessary to ensure the safety of civil aviation and the safe operation of commercial aircraft engaged in international air transportation, excluding the export or reexport of such aircraft leased to state-owned enterprises; and
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Dated:
Deputy Assistant Secretary for
[FR Doc. 2019-22876 Filed 10-18-19;
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