Billing Code: 3510-33-P
DEPARTMENT OF COMMERCE
Bureau of Industry and Security
15 CFR Parts 736 and 740
[Docket No. 080519687-8707-01]
[RIN 0694-AE37]
Expansion of the Gift Parcel License Exception Regarding Cuba to Authorize Mobile
Phones and Related Software and Equipment
AGENCY:  Bureau of Industry and Security, Commerce.
ACTION:  Final rule.
SUMMARY:  This rule revises a license exception in the Export Administration Regulations to
allow the export of mobile phones as gifts sent by individuals to eligible recipients in Cuba.  The
Bureau of Industry and Security (BIS) is taking this action to provide support for individuals to
support democracy-building efforts for Cuba by enabling the free exchange of information
among Cuban citizens and with persons in other countries.
DATES:  This rule is effective June 13, 2008.
ADDRESSES:  Although this is a final rule and there is no formal comment period, comments
may be submitted at any time by e-mail directly to BIS at publiccomments@bis.doc.gov (please
refer to RIN 0694-AE37 in the subject line); or by delivery to Regulatory Policy Division, Office
of Exporter Services, Bureau of Industry and Security, Room H2705, U.S. Department of
Commerce, 14th Street and Pennsylvania Avenue, N.W. Washington, D.C. 20230.  Comments
on the information collection that this rule concerns should also be sent to David Rostker, Office
of Management and Budget Desk Officer; by e-mail to david_rostker@omb.eop.gov; or by fax to
(202) 395-7285.  Refer to RIN 0694-AE37 in all comments.
FOR FURTHER INFORMATION CONTACT:  Anthony Christino, Foreign Policy Division,
Office of Nonproliferation and Treaty Compliance at (202) 482-4252.
SUPPLEMENTARY INFORMATION
Background
On May 21, 2008, the President, marking the Day of Solidarity with the Cuban People,
announced that, in support of "Cubans who work to make their nation democratic and prosperous
and just," the relevant U.S. Government agencies would make any regulatory changes necessary
"to allow Americans to send mobile phones to family members in Cuba."  The Cuban
government announced earlier this year that it will now permit Cubans to acquire and use mobile
phones.  Recent global events have shown the value that mobile phones and communications
devices can provide to those seeking to exercise the fundamental freedoms to which they are
entitled under international law.
In support of this Presidential initiative, BIS is taking regulatory action consistent with all
relevant laws, including the Cuban Liberty and Democratic Solidarity Act of 1996 (LIBERTAD),
to allow exports of mobile phones in specified circumstances.  This action is consistent with the
ongoing support the United States has provided to individuals who support democracy-building
efforts for Cuba by enabling the free exchange of information among persons in Cuba and with
persons in other countries.
Consistent with the United States embargo of Cuba, the Export Administration Regulations
(EAR) require a license for exports and reexports of all items subject to the EAR to Cuba, with
only a limited number of license exceptions.  One of those exceptions authorizes exports and
reexports of certain items in gift parcels from donors to members of the donor's immediate family
in Cuba.  This rule amends the terms of License Exception Gift Parcels and Humanitarian
Donations (GFT) to permit mobile phones (and related software, batteries, memory cards,
chargers, and other accessories for mobile phones) to be included in such gift parcels.  This rule
also raises the value limit on such gift parcels from $200 to $400. This increase is intended to
allow the donor to choose from a variety of currently available mobile phones without having to
reduce the quantity of other items, such as medicines or medical supplies in the gift parcel. All
other terms of that license exception, including eligible recipients and frequency of shipments are
not changed by this rule.
Many gift parcels are shipped from the United States to Cuba through parties who consolidate
multiple gift parcels.  Under the EAR, a license is required for consolidations of gift parcels. This
rule makes no changes to this requirement.  Although individual gift parcels may be eligible for
export pursuant to License Exception GFT, the consolidated shipments of multiple gift parcels
are not eligible for such license exception.   BIS has issued a number of licenses to parties
authorizing them to export consolidated gift parcels to Cuba.  As part of this rule, BIS is issuing a
General Order authorizing holders of licenses to use those licenses to export gift parcels
containing the mobile phones and related software, batteries, memory cards, chargers and related
items that this rule makes eligible for the gift parcel license exception.  This modification is
necessary because some previously-issued licenses for consolidated shipments list the
commodities that may be included in such consolidated gift parcels.  This General Order does
not, however, increase the total value of exports permitted under, or extend the expiration date
of, any license.  Issuance of this General Order to modify existing licenses will facilitate
implementation of the new policy by allowing consolidators to begin including mobile phones
right away rather than having to wait for new licenses to be issued.  Consolidators will still need
to apply for new licenses authorizing the full array of items to which the gift parcel exception
applies as their existing licenses are fully used or expire.
Rulemaking Requirements
1.  This is a significant rule for purposes of Executive Order 12866.
2.  Notwithstanding any other provision of law, no person is required to respond to nor may 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 concerns a collection previously approved by OMB
under control number 0694-0088, AMulti-Purpose Application," which carries a burden hour
estimate of 58 minutes to prepare and submit form BIS-748.  Miscellaneous and recordkeeping
activities account for 12 minutes per submission.  BIS believes that this rule will have no effect
on the burden imposed by this collection.
3.  This rule does not contain policies with Federalism implications as that term is defined in
Executive Order 13132.
4.  The provisions of the Administrative Procedure Act (5 U.S.C. 553) requiring notice of
proposed rulemaking, the opportunity for public participation, and a delay in effective date, are
inapplicable because this regulation involves a military or foreign affairs function of the United
States (see 5 U.S.C. 553(a)(1)).  Further, no other law requires that a notice of proposed
rulemaking and an opportunity for public comment be given for this rule.  Because a notice of
proposed rulemaking and an opportunity for public comment are not required to be given for this
rule 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.
List of Subjects
15 CFR Part 736
     Exports.
15 CFR Part 740
     Administrative practice and procedure, Exports, Reporting and recordkeeping
requirements
For the reasons set forth in the preamble, the Export Administration Regulations (15 CFR 730 B
774) amend parts 730 and 774 as follows:
PART 736 - [AMENDED]
1.  The authority citation for part 736 continues to read as follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 22 U.S.C. 2151 note; 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. 13338, 69 FR 26751, May 13, 2004; Notice of August 15,
2007, 72 FR 46137 (August 16, 2007); Notice of November 8, 2007, 72 FR 63963 (November
13, 2007).
2.  Add the following General Order to the end of Supplement No. 1 to part 736, to read as
follows:
Supplement No. 1 to Part 736 General Orders
*   *   *   *   *
General Order No. 4 of June 13, 2008 adding mobile phones and related  software, batteries,
memory cards, chargers and other accessories therefor to existing licenses for exports of
consolidated gift parcels to Cuba.
(a)  Section 740.12(a) of the EAR authorizes, among other things, certain exports of gift parcels
to Cuba pursuant to a license exception.  However, consolidated shipments of multiple gift
parcels to Cuba require a license even if all of the individual items within the consolidated gift
parcel would be eligible for this license exception if shipped alone.
(b) In addition to the items stated on the license itself, licenses authorizing the export to Cuba of
the consolidated gift parcels described in paragraph (a) of this order that are effective on June 13,
2008 also authorize the export of consolidated gift parcels containing the mobile phones and
software, batteries, chargers, memory cards  and other accessories therefor that may be exported
in gift parcels to Cuba pursuant to  740.12(a)(2)(i)(B)(1) of the EAR.
(c)  This General Order does not change any of the other terms (including total value of items
that may be exported or expiration date) of the licenses it affects.
PART 740 - [AMENDED]
3.  The authority citation for part 740 continues to read as follows:
Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.;  22 U.S.C. 7201 et seq.; E.O.
13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 228;  E.O. 13222, 66 FR 44025, 3 CFR, 2001
Comp., p. 783; Notice of August 15, 2007, 72 FR 46137 (August 16, 2007).
4.   Section 740.12 is amended by revising paragraphs (a)(2)(i)(A)(1), (a)(2)(i)(B)(1), and
(a)(2)(iv) to read as follows:
 740.12 Gift parcels and humanitarian donations (GFT).
(a)   *   *   *
(2)   *   *   *
(i)     *   *   *
(A)   *   *   *
 (1)   For Cuba, no item listed on the Commerce Control List other than mobile phones covered
by ECCNs 5A991 or 5A992 and software for those phones covered by 5D992, as specified in
paragraph (a)(2)(i)(B)(1), of this section may be included in a gift parcel.
*   *   *   *   *
(B) *   *   *
(1)  For Cuba, the only eligible commodities and software are food (including vitamins),
medicines, medical supplies and devices (including hospital supplies and equipment and
equipment for the handicapped), receive-only radio equipment for reception of commercial/civil
AM/FM and short wave publicly available frequency bands, batteries for such equipment and
mobile phones covered by ECCNs 5A991 or 5A992, software for those phones covered by
ECCN 5D992 and batteries, memory cards, chargers and other accessories for such mobile
phones.
*   *   *   *   *
(iv)  Value.  The combined total domestic retail value of all commodities and software may not
exceed $400.  This limit does not apply to food sent in a gift parcel to Cuba.
*   *   *   *   *
Dated
Matthew S. Borman
Acting Assistant Secretary for Export Administration