Restricting Additional Exports and Reexports to Cuba

Citation84 FR 56117
Record Number2019-22876
Published date21 October 2019
SectionRules and Regulations
CourtIndustry And Security Bureau
Federal Register, Volume 84 Issue 203 (Monday, October 21, 2019)
[Federal Register Volume 84, Number 203 (Monday, October 21, 2019)]
                [Rules and Regulations]
                [Pages 56117-56121]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2019-22876]
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                DEPARTMENT OF COMMERCE
                Bureau of Industry and Security
                15 CFR Parts 734, 740, and 746
                [Docket No. 191011-0062]
                RIN 0694-AH90
                Restricting Additional Exports and Reexports to Cuba
                AGENCY: Bureau of Industry and Security, Commerce.
                ACTION: Final rule.
                -----------------------------------------------------------------------
                SUMMARY: In this final rule, the Bureau of Industry and Security (BIS)
                amends the Export Administration Regulations (EAR) to further restrict
                exports and reexports of items to Cuba. Specifically, this rule amends
                the Cuba licensing policy in the EAR to establish a general policy of
                denial for leases of aircraft to Cuban state-owned airlines. This rule
                also amends License Exception Aircraft, Vessels and Spacecraft (AVS) to
                clarify that aircraft and vessels are not eligible for the license
                exception if they are leased to or chartered by a national of Cuba or a
                State Sponsor of Terrorism. Additionally, this rule amends the EAR to
                establish a general 10-percent de minimis level for Cuba. Finally, this
                rule revises License Exception Support for the Cuban People (SCP) to
                make the Cuban government and communist party ineligible for certain
                donations, removes an authorization for promotional items that
                generally benefits the Cuban government, and clarifies the scope of
                telecommunications items that the Cuban government may receive without
                a license. BIS is making these amendments to further restrict the Cuban
                government's access to items subject to the EAR, thereby supporting the
                Administration's national security and foreign policy decision to hold
                the Cuban regime accountable for its repression of the Cuban people and
                its support for the Maduro regime in Venezuela; the Cuban regime denies
                its people fundamental freedoms while keeping Maduro in power using
                Cuban military intelligence and state security services. These
                amendments are consistent with the National Security Presidential
                Memorandum on Strengthening the Policy of the United States Toward
                Cuba, signed by the President on June 16, 2017.
                DATES: This rule is effective October 21, 2019.
                FOR FURTHER INFORMATION CONTACT: Alan W. Christian, Foreign Policy
                Division, Office of Nonproliferation and Treaty Compliance, Bureau of
                Industry and Security at (202) 482-4252.
                SUPPLEMENTARY INFORMATION:
                Background
                 On June 16, 2017, President Trump announced changes to U.S. policy
                toward Cuba intended to: Enhance compliance with United States law;
                channel funds toward the Cuban people and away from the regime;
                encourage the Cuban government to address oppression and human rights
                abuses; further the national security and foreign policy interests of
                the United States, as well as express solidarity with the Cuban people;
                and lay the groundwork to improve human rights, encourage the rule of
                law, foster free markets and free enterprise, and promote democracy in
                Cuba. The President's policy is stated in the National Security
                Presidential Memorandum on Strengthening the Policy of the United
                States Toward Cuba (NSPM-5), dated June 16, 2017 (82 FR 48875, October
                20, 2017). NSPM-5 also directs the Secretary of Commerce, as well as
                the Secretaries of State and the Treasury, to take certain actions to
                implement the President's Cuba policy. On November 9, 2017, the
                Department of Commerce's Bureau of Industry and Security (BIS) and the
                Department of the Treasury's Office of Foreign Assets Control (OFAC)
                published rules in the Federal Register to implement certain portions
                of NSPM-5 (82 FR 51983 and 82 FR 51998, respectively). The Department
                of State also published the List of Restricted Entities and Subentities
                Associated with Cuba (Cuba Restricted List) (82 FR 52089), which is
                used by BIS in reviewing license applications submitted pursuant to the
                Export Administration Regulations (EAR) (15 CFR parts 730 through 774)
                and by OFAC in prohibiting certain direct financial transactions
                pursuant to the Cuban Assets Control Regulations (CACR) (31 CFR part
                515). Additional entities and subentities have subsequently been added
                to the Cuba Restricted List (83 FR 57523, 84 FR 8939, 84 FR 17228, and
                84 FR 36154). Please also see the Department of State's website at:
                https://www.state.gov/cuba-sanctions/cuba-restricted-list/.
                 On April 17, 2019, the White House announced that the
                Administration is holding the Cuban regime accountable for repressing
                the Cuban people and supporting the Maduro regime in Venezuela through
                multiple actions, including by restricting non-family travel to Cuba,
                or in other words, ``veiled tourism.'' BIS and OFAC published rules in
                the Federal Register on June 5, 2019, to implement restrictions on non-
                family travel to Cuba (84 FR 25986 and 84 FR 25992, respectively).
                Additionally, OFAC published a rule in the Federal Register on
                September 9, 2019, to remove certain authorizations for remittances to
                Cuba and amend the general license relating to ``U-turn'' financial
                transactions to eliminate the authorization to process such
                transactions and instead only allow the rejection of such transactions
                (84 FR 47121).
                 The Cuban government has generated revenue or otherwise benefited
                from
                [[Page 56118]]
                certain exports and reexports to Cuba. Consequently, BIS is amending
                the EAR to further restrict the Cuban government's access to items
                subject to the EAR, thereby supporting the Administration's policy to
                hold the Cuban regime accountable for its malign activities at home and
                abroad. Any party that violates the EAR may be subject to criminal and/
                or civil penalties specified in section 1760 of the Export Control
                Reform Act of 2018 (50 U.S.C. 4801-4852), and any other sanctions
                available under U.S. law.
                Specific Amendments in This Rule
                Cuba Licensing Policy
                 Consistent with the embargo of Cuba, BIS authorization in the form
                of a license or license exception is required for the export or
                reexport to Cuba of all items subject to the EAR. Section 746.2(b) of
                the EAR explains that license applications for the export or reexport
                to Cuba of items requiring a license are subject to a general policy of
                denial unless otherwise specified in that paragraph. This rule amends
                paragraph (b)(2)(v) to remove the general policy of approval for
                applications to export or reexport aircraft leased to Cuban state-owned
                airlines. Consequently, license applications to lease aircraft to Cuban
                state-owned airlines are now subject to the general policy of denial in
                Sec. 746.2(b) of the EAR. BIS will also revoke licenses within seven
                days, through individual notifications to licensees pursuant to Sec.
                750.8 of the EAR, for aircraft leased to Cuban state-owned airlines
                under the former policy. BIS is making these changes because the Cuban
                government generates revenue from tourists that it transports on leased
                aircraft.
                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
                Cuba, including paragraphs (a) and (d) of License Exception AVS in
                Sec. 740.15 for, respectively, certain aircraft and vessels on
                temporary sojourn.
                 Paragraph (a) of License Exception AVS authorizes the export or
                reexport to Cuba of certain aircraft on temporary sojourn, provided all
                of the associated terms and conditions are met. Paragraph (a)(3)
                identifies the criteria that must be met if a flight is to qualify as a
                temporary sojourn. This rule adds paragraph (a)(3)(x) to clarify that
                aircraft leased to or chartered by a Cuban national are not eligible
                for License Exception AVS. New paragraph (a)(3)(x) also clarifies that
                aircraft are not eligible for License Exception AVS if leased to or
                chartered by a national of a destination in Country Group E:1
                (Terrorist supporting countries). Additionally, this rule adds Cuba to
                restrictions in paragraphs (a)(1)(i) and (ii) of License Exception AVS
                regarding the sale or transfer of operational control of foreign
                registered aircraft and to restrictions in paragraphs (a)(3)(iv)
                through (ix) of License Exception AVS regarding the operational control
                of foreign and U.S. registered aircraft. Instead of identifying Cuba by
                name, this rule adds references to Country Group E:2 (Unilateral
                embargo), which currently only includes Cuba. For consistency, this
                rule changes a reference to Cuba in paragraph (a)(2)(ii) of License
                Exception AVS to Country Group E:2. This rule also clarifies the
                existing list of aircraft eligible for paragraph (a)(2)(i) of License
                Exception AVS.
                 Paragraph (d) of License Exception AVS authorizes the export or
                reexport to Cuba of cargo vessels for hire on temporary sojourn,
                provided all of the associated terms and conditions are met. Paragraph
                (d)(3) identifies the criteria that must be met if a voyage is to
                qualify as a temporary sojourn. This rule adds paragraph (d)(3)(v) to
                clarify that vessels leased to or chartered by a Cuban national are not
                eligible for License Exception AVS. New paragraph (d)(3)(v) also
                clarifies that vessels are not eligible for License Exception AVS if
                leased to or chartered by a national of a destination in Country Group
                E:1. Additionally, this rule adds Cuba to the restriction in paragraphs
                (d)(1)(i) and (ii) of License Exception AVS regarding the sale or
                transfer of operational control of foreign flagged vessels and to
                restrictions in paragraphs (d)(2)(v) through (vii), (d)(3)(iv), and
                (d)(4)(v) through (vii) of License Exception AVS regarding the
                operational control of and related activities involving foreign and
                U.S. flagged vessels. As is done in paragraph (a), the changes to
                paragraph (d) reference Country Group E:2 instead of referencing Cuba
                by name.
                 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 Sec. 746.2(b)
                of the EAR. License applications for aircraft or vessels leased to or
                chartered by other nationals of Cuba will be reviewed pursuant to the
                applicable licensing policy described in Sec. 746.2(b) of the EAR. BIS
                is making these changes to License Exception AVS because the Cuban
                government has generated revenue or otherwise benefited from the lease
                or charter of aircraft and vessels.
                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 U.S.-origin commodities, software, or technology.
                Paragraph (a) of Sec. 734.4 identifies items for which there is no de
                minimis level, and thus are subject to the EAR if they contain any
                controlled U.S.-origin content, and paragraph (b) identifies special
                requirements for certain encryption items. When paragraphs (a) and (b)
                of Sec. 734.4 are not applicable, either the 10-percent de minimis
                rule described in paragraph (c) or the 25-percent de minimis rule
                described in paragraph (d) applies, depending upon the destination of
                the items.
                 This rule amends Sec. 734.4(d) of the EAR to make Cuba subject to
                the general 10-percent de minimis rule in Sec. 734.4(c). Now, a BIS
                license or an applicable license exception specified in Sec.
                746.2(a)(1) of the EAR is required for the reexport to Cuba of foreign-
                made items that contain greater than 10 percent of U.S.-origin content
                or, when Sec. 734.4(a) applies, contain any U.S.-origin content.
                License applications for such items are subject to a general policy of
                denial, unless eligible for another licensing policy described in Sec.
                746.2(b) of the EAR. Instead of referencing Cuba by name in Sec.
                734.4, this rule makes Cuba subject to the general 10-percent de
                minimis rule by referencing Country Group E:2. BIS is making this
                change to de minimis because the Cuban government could generate
                revenue or otherwise benefit from the receipt of items containing
                greater than 10 percent of U.S.-origin content.
                License Exception Support for the Cuban People
                 License Exception Support for the Cuban People (SCP) in Sec.
                740.21 of the EAR was created to authorize certain exports and
                reexports to Cuba that are intended to support the Cuban people by
                improving their living conditions and supporting independent economic
                activity; strengthening civil society in Cuba; and improving the free
                flow of information to, from, and among the Cuban people. Items
                exported or reexported pursuant to certain provisions of License
                Exception SCP may be consigned to or, in some instances, used by the
                Cuban
                [[Page 56119]]
                government provided the items would be used to benefit the Cuban
                people.
                 Paragraph (c)(1) of License Exception SCP authorizes the export or
                reexport to Cuba of certain donated items for use in scientific,
                archeological, cultural, ecological, educational, historic
                preservation, or sporting activities provided specified conditions are
                met. This rule amends paragraph (c)(1) to exclude donations to
                organizations administered or controlled by the Cuban government or
                communist party. Consequently, an exporter or reexporter wanting to
                donate items to organizations administered or controlled by the Cuban
                government or communist party must submit a license application to BIS,
                which will be reviewed pursuant to the licensing policy in Sec.
                746.2(b) of the EAR. This change will give the U.S. Government the
                opportunity to determine whether donations to those entities would
                benefit the Cuban people. Paragraph (c)(1) of License Exception SCP is
                still available for eligible donations to the Cuban people and civil
                society organizations provided the items would be used to support
                activities independent of the Cuban government and communist party.
                 Paragraph (d)(1) of License Exception SCP authorizes the export or
                reexport to Cuba of certain items for telecommunications infrastructure
                creation and upgrades. This rule amends paragraph (d)(1) to clarify
                that it is limited to eligible items for the creation and upgrades of
                telecommunications infrastructure to improve the free flow of
                information to, from, and among the Cuban people. For infrastructure
                items that would be used to connect specific end users (i.e., non-
                backbone items), those items may be used to connect individual Cubans
                or the Cuban private sector only. A license is required for the export
                or reexport to Cuba of items for telecommunications infrastructure that
                would be used to connect other specific end users (e.g., Cuban
                government ministries and state-owned hotels), which will be reviewed
                pursuant to the licensing policy in Sec. 746.2(b) of the EAR.
                Separately, License Exception Consumer Communications Devices (CCD) in
                Sec. 740.19 of the EAR authorizes the export or reexport to Cuba of
                certain consumer communications devices for use by eligible individuals
                and independent non-governmental organizations.
                 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 Sec. 746.2(b) of the EAR.
                 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, February 3, 2017) because it is issued with respect to a
                national security function of the United States. This rule supports the
                Administration's national security and foreign policy objectives per
                the direction provided to agencies in National Security Presidential
                Memorandum on Strengthening the Policy of the United States Toward Cuba
                (NSPM-5). National Security Presidential Memoranda are used to
                promulgate Presidential decisions on national security matters. Thus,
                the primary direct benefit of this rule is to improve national
                security. Restricting additional exports and reexports to Cuba,
                including leased aircraft, will reduce the ability of the Cuban
                government, including its military, intelligence, and security
                services, to generate revenue or otherwise derive benefits from the use
                of items subject to the EAR. Accordingly, this rule meets the
                requirements set forth in the April 5, 2017, OMB guidance implementing
                E.O. 13771. See https://www.whitehouse.gov/sites/whitehouse.gov/files/omb/memoranda/2017/M-17-21-OMB.pdf.
                 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. 601, et seq., are not applicable.
                Accordingly, no regulatory flexibility analysis is required and none
                has been prepared.
                 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 Office of
                Management and Budget (OMB) Control Number. This regulation involves a
                collection currently approved by OMB under control number 0694-0088,
                Simplified Network Application Processing System. This collection
                includes, among other things, license applications, and carries a
                burden estimate of 42.5 minutes for a manual or electronic submission
                for a total burden estimate of 31,878 hours. BIS expects the burden
                hours associated with this collection to minimally increase and have
                limited impact on the existing estimates. Any comments regarding the
                collection of information associated with this rule, including
                suggestions for reducing the burden, may be sent to Jasmeet K. Seehra,
                Office of Management and Budget (OMB), by email to
                [email protected], or by fax to (202) 395-7285.
                List of Subjects
                15 CFR Part 734
                 Administrative practice and procedure, Exports, Inventions and
                patents, Research, Science and technology.
                [[Page 56120]]
                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]
                0
                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. 1701 et seq.; E.O. 12938, 59 FR 59099, 3 CFR, 1994 Comp., p.
                950; E.O. 13020, 61 FR 54079, 3 CFR, 1996 Comp., p. 219; E.O. 13026,
                61 FR 58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3
                CFR, 2001 Comp., p. 783; E.O. 13637, 78 FR 16129, 3 CFR, 2014 Comp.,
                p. 223; Notice of November 8, 2018, 83 FR 56253 (November 9, 2018).
                0
                2. Section 734.4 is amended by revising the introductory text of
                paragraph (d) to read as follows:
                Sec. 734.4 De minimis U.S. content.
                * * * * *
                 (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.
                * * * * *
                PART 740--[AMENDED]
                0
                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. 1701 et seq.; 22 U.S.C. 7201 et seq.; E.O. 13026, 61 FR
                58767, 3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 FR 44025, 3 CFR,
                2001 Comp., p. 783.
                0
                4. Section 740.15 is amended by:
                0
                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);
                0
                b. Adding paragraph (a)(3)(x);
                0
                c. Revising paragraphs (d)(1)(i) and (ii), (d)(2)(v), (vi), and (vii),
                and (d)(3)(iv);
                0
                d. Adding paragraph (d)(3)(v); and
                0
                e. Revising paragraphs (d)(4)(v), (vi), and (vii).
                 The revisions and additions read as follows:
                Sec. 740.15 Aircraft, Vessels and Spacecraft (AVS).
                * * * * *
                 (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 the United States;
                 (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
                * * * * *
                 (2) U.S. registered aircraft. (i) A civil aircraft of U.S. registry
                operating under an Air Carrier Operating Certificate, Commercial
                Operating Certificate, or Air Taxi Operating Certificate issued by the
                Federal Aviation Administration (FAA) or conducting flights under
                operating specifications approved by the FAA pursuant to 14 CFR part
                129, or an air ambulance of U.S. registry operating under 14 CFR part
                135, may depart from the United States under its own power for any
                destination, provided that:
                * * * * *
                 (ii) Any other operating civil aircraft of U.S. registry may depart
                from the United States under its own power for any destination, except
                to or a destination in Country Group E:1 or E:2 (see supplement no. 1
                to this part) (flights to these destinations require a license),
                provided that:
                * * * * *
                 (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:
                * * * * *
                 (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).
                * * * * *
                 (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 the United States;
                 (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
                * * * * *
                 (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).
                [[Page 56121]]
                 (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).
                * * * * *
                0
                5. Section 740.21 is amended by:
                0
                a. Revising paragraphs (c)(1) and (d)(1); and
                0
                b. Removing and reserving paragraph (e)(2).
                 The revisions read as follows:
                Sec. 740.21 Support for the Cuban People (SCP).
                * * * * *
                 (c) * * *
                 (1) The export or reexport to Cuba of donated items for use in
                scientific, archaeological, cultural, ecological, educational, historic
                preservation, or sporting activities. The items may not be donated to
                organizations administered or controlled by the Cuban government or
                communist party, and must support eligible activities independent of
                the Cuban government and communist party. The activities may not relate
                to the ``development,'' ``production,'' ``use,'' operation,
                installation, maintenance, repair, overhaul or refurbishing of any item
                enumerated or otherwise described on the United States Munitions List
                (22 CFR part 121) or of any item enumerated or otherwise described on
                the Commerce Control List (supplement no. 1 to part 774 of the EAR)
                unless the only reason for control that applies to that item, as set
                forth in the ECCN that controls that item, is anti-terrorism.
                * * * * *
                 (d) * * *
                 (1) The export or reexport to Cuba of items for the creation and
                upgrade of telecommunications infrastructure to improve the free flow
                of information to, from, and among the Cuban people, including
                infrastructure that enables access to the internet and use of internet
                services. For infrastructure items that would be used to connect
                specific end users, those items may be used to connect individual
                Cubans or the Cuban private sector only (e.g., not Cuban government
                ministries or state-owned enterprises).
                * * * * *
                PART 746--[AMENDED]
                0
                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. 1701 et seq.; 22 U.S.C. 287c; Sec 1503, Pub. L. 108-11, 117
                Stat. 559; 22 U.S.C. 2151 note; 22 U.S.C. 6004; 22 U.S.C. 7201 et
                seq.; 22 U.S.C. 7210; E.O. 12854, 58 FR 36587, 3 CFR, 1993 Comp., p.
                614; E.O. 12918, 59 FR 28205, 3 CFR, 1994 Comp., p. 899; E.O. 13222,
                66 FR 44025, 3 CFR, 2001 Comp., p. 783; E.O. 13338, 69 FR 26751, 3
                CFR, 2004 Comp., p 168; Presidential Determination 2003-23, 68 FR
                26459, 3 CFR, 2004 Comp., p. 320; Presidential Determination 2007-7,
                72 FR 1899, 3 CFR, 2006 Comp., p. 325; Notice of May 8, 2019, 84 FR
                20537 (May 10, 2019).
                0
                7. Section 746.2 is amended by revising paragraph (b)(2)(v) to read as
                follows:
                Sec. 746.2 Cuba.
                * * * * *
                 (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
                * * * * *
                 Dated: October 15, 2019.
                Matthew S. Borman,
                Deputy Assistant Secretary for Export Administration.
                [FR Doc. 2019-22876 Filed 10-18-19; 8:45 am]
                 BILLING CODE 3510-33-P
                

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