[Federal Register Volume 69, Number 242 (Friday, December 17, 2004)]
[Rules and Regulations]
[Pages 75468-75472]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-27717]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control

31 CFR Parts 515, 538 and 560


Cuban Assets Control Regulations, Sudanese Sanctions Regulations, 
and Iranian Transactions Regulations

AGENCY: Office of Foreign Assets Control, Treasury.

ACTION: Final rule.

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SUMMARY: The Office of Foreign Assets Control (``OFAC'') of the U.S. 
Department of the Treasury is revising the Cuban Assets Control 
Regulations, the Sudanese Sanctions Regulations, and the Iranian 
Transactions Regulations to add general licenses pertaining to certain 
publishing activities.

DATES: Effective Date: December 17, 2004. Comments may be submitted at 
any time.

ADDRESSES: You may submit comments by any of the following methods:
    <bullet> Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
    <bullet> Agency Web Site: http://www.treas.gov/offices/enforcement/ofac/comment.html.
    <bullet> Fax: Chief of Records, 202/622-1657.
    <bullet> Mail: Chief of Records, ATTN: Request for Comments, Office 
of Foreign Assets Control, Department of the Treasury, 1500 
Pennsylvania Avenue, NW., Washington, DC 20220.
    Instructions: All submissions received must include the agency name 
and the FR Doc. number that appears at the end of this document. 
Comments received will be posted without change to http://www.treas.gov/ofac, including any personal information provided. For 
detailed instructions on submitting comments and additional information 
on the rulemaking process, see the ``Public Participation'' heading of 
the SUPPLEMENTARY INFORMATION section of this document. To read 
background documents or comments received, go to http://www.treas.gov/ofac.

FOR FURTHER INFORMATION CONTACT: Chief of Policy Planning and Program 
Management, tel. 202/622-2500, Chief of Licensing, tel.: 202/622-2480, 
Chief of Compliance, tel. 202/622-2490, or Chief Counsel, tel.: 202/
622-2410, Office of Foreign Assets Control, Department of the Treasury, 
Washington, DC 20220 (not toll free numbers).

SUPPLEMENTARY INFORMATION:

Electronic and Facsimile Availability

    This file is available for download without charge in ASCII and 
Adobe Acrobat readable (*.PDF) formats at GPO Access. GPO Access 
supports HTTP, FTP, and Telnet at fedbbs.access.gpo.gov. It may also be 
accessed by modem dialup at 202/512-1387 followed by typing ``/GO/
FAC.'' Paper copies of this document can be obtained by calling the 
Government Printing Office at 202/512-1530. This document and 
additional information concerning the programs of the Office of Foreign 
Assets Control are available for downloading from the Office's Internet 
Home Page: http://www.treas.gov/ofac, or via FTP at ofacftp.treas.gov. 
Facsimiles of information are available through the Office's 24-hour 
fax-on-demand service: call 202/622-0077 using a fax machine, fax 
modem, or (within the United States) a touch-tone telephone.

Background

    The Cuban Assets Control Regulations, 31 CFR part 515 (the 
``CACR''), were issued by the U.S. Government on July 8, 1963, under 
the Trading with the Enemy Act (50 U.S.C. App. 5 et seq.) (TWEA), in 
response to certain hostile actions by the Cuban Government. Since that 
time, U.S. policy toward Cuba has been to encourage a rapid and 
peaceful transition to democracy. The TWEA sanctions are intended to 
isolate the Cuban Government economically and deprive it of U.S. 
dollars that the Cuban Government would otherwise use to maintain or 
strengthen its repressive apparatus, enforce its information blockade 
on the Cuban people, and arrange for a succession and the continuation 
of the totalitarian Communist government.
    The Sudanese Sanctions Regulations, 31 CFR part 538 (the ``SSR''), 
implement Executive Order 13067, issued on November 3, 1997, pursuant 
to, inter alia, the International Emergency Economic Powers Act (50 
U.S.C. 1701-1706) (IEEPA). In the order, the President declared a 
national emergency with respect to the policies and actions of the 
Government of Sudan, ``including continued support for international 
terrorism; ongoing efforts to destabilize neighboring governments; and 
the prevalence of human rights violations, including slavery and the 
denial of religious freedom.'' To deal with this national emergency, 
Executive Order 13067 imposed trade sanctions with respect to Sudan and 
blocked all property and interests in property of the Government of 
Sudan in the United States or within the possession or control of U.S. 
persons.
    The Iranian Transactions Regulations, 31 CFR part 560 (the 
``ITR''), implement a series of Executive orders, beginning with 
Executive Order 12957, issued on March 15, 1995. In that order, the 
President declared a national emergency pursuant to IEEPA to deal with 
the unusual and extraordinary threat to the national security, foreign 
policy, and economy of the United States constituted by the actions and 
policies of the Government of Iran, including its support for 
international terrorism, its efforts to undermine the Middle East peace 
process and its efforts to acquire weapons of mass destruction and the 
means to deliver them. To deal with this threat, Executive Order 12957 
imposed prohibitions on certain transactions with respect to the 
development of Iranian petroleum resources. On May 6, 1995, the 
President issued Executive Order 12959 imposing comprehensive trade 
sanctions to further respond to this threat, and on August 19, 1997, 
the President issued Executive Order 13059 consolidating and clarifying 
the previous orders.
    The Treasury Department's Office of Foreign Assets Control 
(``OFAC'') is amending the CACR, SSR and ITR to authorize certain 
activities relating to publishing that otherwise entail the prohibited 
exportation of services to, or prohibited importation of services from, 
Cuba, Sudan or Iran.
    With certain exceptions, the exportation and importation of 
information and informational materials to or from any country are 
exempt from regulation by the President under TWEA and IEEPA. See 50 
U.S.C. App. 5(b)(4) and 50 U.S.C. 1702(b)(3), respectively. OFAC is 
issuing the new general licenses set forth at 31 CFR 515.577, 31 CFR 
538.529 and 31 CFR 560.538 to authorize transactions not already exempt 
from regulation that directly support the publishing and marketing of 
manuscripts, books, journals, and newspapers, in paper or electronic 
format.
    Each of the general licenses is similar in structure and scope, 
authorizing a variety of activities relating to publishing with 
appropriate exceptions, such as those for the governments of

[[Page 75469]]

each of the sanctioned countries. Section 515.545, a pre-existing 
general license pertaining to information and informational materials 
remains in effect, but is being revised to include a note referring to 
the further authorizations contained in Sec.  515.577.

Public Participation

    Because the amendment of the CACR, ITR and SSR involves a foreign 
affairs function, the provisions of Executive Order 12866 and the 
Administrative Procedure Act (5 U.S.C. 553) (the ``APA'') requiring 
notice of proposed rulemaking, opportunity for public participation, 
and delay in effective date, are inapplicable. Because no notice of 
proposed rulemaking is required for this rule, the Regulatory 
Flexibility Act (5 U.S.C. 601-612) does not apply. However, OFAC 
encourages interested persons who wish to comment to do so in writing. 
The address for submitting comments appears in the ADDRESSES section 
near the beginning of this document. OFAC will not accept public 
comments written in languages other than English or accompanied by a 
request that a part or all of the submission be treated confidentially 
because of its business proprietary nature or for any other reason. 
OFAC will return such submissions to the originator. All public 
comments on these regulations will be a matter of public record. Copies 
of the public record concerning these regulations will be made 
available not sooner than March 17, 2005, and will be obtainable from 
OFAC's Internet Home Page at http://www.treas.gov/ofac. If that service 
is unavailable, written requests for copies may be sent to Office of 
Foreign Assets Control, U.S. Department of the Treasury, 1500 
Pennsylvania Ave., NW., Washington, DC 20220, Attn: Chief, Records 
Division.

Paperwork Reduction Act

    The collections of information related to 31 CFR parts 31 CFR parts 
560 and 538 are contained in 31 CFR part 501 (the ``Reporting, 
Procedures and Penalties Regulations''). Pursuant to the Paperwork 
Reduction Act of 1995 (44 U.S.C. 3507), those collections of 
information have been approved by the Office of Management and Budget 
under control number 1505-0164. An agency may not conduct or sponsor, 
and a person is not required to respond to, a collection of information 
unless the collection of information displays a valid control number.

List of Subjects

31 CFR Part 515

    Administrative practice and procedure, Cuba, Exports, Foreign 
trade, Imports, Information.

31 CFR Part 538

    Administrative practice and procedure, Exports, Foreign trade, 
Imports, Information, Sudan.

31 CFR Part 560

    Administrative practice and procedure, Exports, Foreign trade, 
Imports, Information, Iran.


0
For the reasons set forth in the Preamble, 31 CFR parts 515, 538 and 
560 are amended as follows:

PART 515--CUBAN ASSETS CONTROL REGULATIONS

0
1. The authority citation for part 515 continues to read as follows:

    Authority: 18 U.S.C. 2332d; 22 U.S.C. 2370(a), 6001-6010; 31 
U.S.C. 321(b); 50 U.S.C. App 1-44; Pub. L. 101-410, 104 Stat. 890 
(28 U.S.C. 2461 note); Pub. L. 106-387, 114 Stat. 1549; E.O. 9193, 7 
FR 5205, 3 CFR, 1938-1943 Comp., p. 1147; E.O. 9989, 13 FR 4891, 3 
CFR, 1943-1948 Comp., p. 748; Proc. 3447, 27 FR 1085, 3 CFR, 1959-
1963 Comp., p. 157; E.O. 12854, 58 FR 36587, 3 CFR, 1993 Comp., p. 
614.

Subpart E--Licenses, Authorizations, and Statements of Licensing 
Policy

0
2. Section 515.545 is amended by adding a note at the end of the 
section to read as follows:


Sec.  515.545  Transactions related to information and informational 
materials.

* * * * *

    Note to Sec.  515.545. With respect to transactions necessary 
and ordinarily incident to the publishing and marketing of 
manuscripts, books, journals and newspapers, see Sec.  515.577.


0
3. Add a new Sec.  515.577 to subpart E to read as follows:


Sec.  515.577  Authorized transactions necessary and ordinarily 
incident to publishing.

    (a) To the extent that such activities are not exempt from this 
part, and subject to the restrictions set forth in paragraphs (b) 
through (d) of this section, persons subject to the jurisdiction of the 
United States are authorized to engage in all transactions necessary 
and ordinarily incident to the publishing and marketing of manuscripts, 
books, journals, and newspapers (collectively, ``written 
publications''), in paper or electronic format. This section does not 
apply if the parties to the transactions described in this paragraph 
include the Government of Cuba. For the purposes of this section, the 
term ``Government of Cuba'' includes the state and the Government of 
Cuba, as well as any political subdivision, agency, or instrumentality 
thereof, including the Central Bank of Cuba; any person occupying the 
positions identified in Sec.  515.570(a)(3); employees of the Ministry 
of Justice; and any person acting or purporting to act directly or 
indirectly on behalf of any of the foregoing with respect to the 
transactions described in this paragraph. For the purposes of this 
section, the term ``Government of Cuba'' does not include any academic 
and research institutions and their personnel. Pursuant to this 
section, the following activities are not prohibited, provided that 
persons subject to the jurisdiction of the United States ensure that 
they are not engaging, without specific authorization, in the 
activities identified in paragraph (d) of this section:
    (1) Commissioning and making advance payments for identifiable 
written publications not yet in existence, to the extent consistent 
with industry practice;
    (2) Collaborating on the creation and enhancement of written 
publications;
    (3) Augmenting written publications through the addition of items 
such as photographs, artwork, translation, and explanatory text;
    (4) Substantive editing of written publications;
    (5) Payment of royalties for written publications;
    (6) Creating or undertaking a marketing campaign to promote a 
written publication; and
    (7) Other transactions necessary and ordinarily incident to the 
publishing and marketing of written publications as described in this 
paragraph (a).
    (b) This section does not authorize transactions involving the 
provision of goods or services not necessary and ordinarily incident to 
the publishing and marketing of written publications as described 
above. For example, this section does not authorize persons subject to 
the jurisdiction of the United States:
    (1) To provide or receive individualized or customized services 
(including, but not limited to, accounting, legal, design, or 
consulting services), other than those necessary and ordinarily 
incident to the publishing and marketing of written publications, even 
though such individualized or customized services are delivered through 
the use of

[[Page 75470]]

information and informational materials;
    (2) To create or undertake for any person a marketing campaign with 
respect to any service or product other than a written publication, or 
to create or undertake a marketing campaign of any kind for the benefit 
of the Government of Cuba;
    (3) To engage in the exportation or importation of goods, other 
than information and informational materials, to or from Cuba;
    (4) To operate a publishing house, sales outlet, or other office in 
Cuba; or
    (5) To engage in transactions related to travel to, from and within 
Cuba.
    (c) This section does not authorize persons subject to the 
jurisdiction of the United States to engage the services of publishing 
houses or translators in Cuba unless such activity is primarily for the 
dissemination of written publications in Cuba.
    (d) This section does not authorize:
    (1) Transactions for the development, production, design, or 
marketing of software;
    (2) Transactions for the development, production, design, or 
marketing of technology specifically controlled by the International 
Traffic in Arms Regulations, 22 CFR parts 120 through 130 (ITAR), the 
Export Administration Regulations, 15 CFR parts 730 through 774 (EAR), 
or the Department of Energy Regulations set forth at 10 CFR part 810.
    (3) The exportation of information or technology subject to the 
authorization requirements of 10 CFR part 810, or Restricted Data as 
defined in section 11 y. of the Atomic Energy Act of 1954, as amended, 
or of other information, data, or technology the release of which is 
controlled under the Atomic Energy Act and regulations therein;
    (4) The exportation of information subject to license application 
requirements under the EAR. These EAR license application requirements 
cover not only the exportation of information controlled on the 
Commerce Control List, 15 CFR part 774, but also the exportation of any 
information subject to the EAR where a U.S. person knows or has reason 
to know that the information will be used, directly or indirectly, with 
respect to certain nuclear, missile, chemical and biological weapons, 
and nuclear-maritime end-uses. In addition, U.S. persons are precluded 
from exporting any information subject to the EAR to certain restricted 
end-users, as provided in the Commerce Department's end-user and end-
use based controls set forth at 15 CFR part 744; or
    (5) The exportation of information subject to licensing 
requirements under the ITAR, or exchanges of information that are 
subject to regulation by other government agencies.
    (e) Specific licenses may be issued on a case-by-case basis 
authorizing the travel-related transactions set forth in Sec.  
515.560(c) for purposes necessary and ordinarily incident to the 
publishing and marketing of written publications.

PART 538--SUDANESE SANCTIONS REGULATIONS

0
4. The authority citation for part 538 continues to read as follows:

    Authority: 3 U.S.C. 301; 31 U.S.C. 321(b); 18 U.S.C. 2339B, 
2332d; 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 106-387, 114 Stat. 
1549; E.O. 13067, 62 FR 59989; 3 CFR, 1997 Comp., p. 230.

Subpart E--Licenses, Authorizations, and Statements of Licensing 
Policy

0
5. Add a new Sec.  538.529 to subpart E to read as follows:


Sec.  538.529  Authorized transactions necessary and ordinarily 
incident to publishing.

    (a) To the extent that such activities are not exempt from this 
part, and subject to the restrictions set forth in paragraphs (b) 
through (d) of this section, U.S. persons are authorized to engage in 
all transactions necessary and ordinarily incident to the publishing 
and marketing of manuscripts, books, journals, and newspapers 
(collectively, ``written publications''), in paper or electronic 
format. This section does not apply if the parties to the transactions 
described in this paragraph include the Government of Sudan. For the 
purposes of this section, the term ``Government of Sudan'' includes the 
state and the Government of Sudan, as well as any political 
subdivision, agency, or instrumentality thereof, including the Central 
Bank of Sudan; and any person acting or purporting to act directly or 
indirectly on behalf of any of the foregoing with respect to the 
transactions described in this paragraph. For the purposes of this 
section, the term ``Government of Sudan'' does not include any academic 
and research institutions and their personnel. Pursuant to this 
section, the following activities are not prohibited, provided that 
U.S. persons ensure that they are not engaging, without specific 
authorization, in the activities identified in paragraph (d) of this 
section:
    (1) Commissioning and making advance payments for identifiable 
written publications not yet in existence, to the extent consistent 
with industry practice;
    (2) Collaborating on the creation and enhancement of written 
publications;
    (3) Augmenting written publications through the addition of items 
such as photographs, artwork, translation, and explanatory text;
    (4) Substantive and artistic editing of written publications;
    (5) Payment of royalties for written publications;
    (6) Creating or undertaking a marketing campaign to promote a 
written publication; and
    (7) Other transactions necessary and ordinarily incident to the 
publishing and marketing of written publications as described in this 
paragraph (a).
    (b) This section does not authorize transactions involving the 
provision of goods or services not necessary and ordinarily incident to 
the publishing and marketing of written publications as described 
above. For example, this section does not authorize U.S. persons:
    (1) To provide or receive individualized or customized services 
(including, but not limited to, accounting, legal, design, or 
consulting services), other than those necessary and ordinarily 
incident to the publishing and marketing of written publications, even 
though such individualized or customized services are delivered through 
the use of information and informational materials;
    (2) To create or undertake for any person a marketing campaign with 
respect to any service or product other than a written publication, or 
to create or undertake a marketing campaign of any kind for the benefit 
of the Government of Sudan;
    (3) To engage in the exportation or importation of goods, other 
than information and informational materials, to or from Sudan; or
    (4) To operate a publishing house, sales outlet, or other office in 
Sudan.
    (c) This section does not authorize U.S. persons to engage the 
services of publishing houses or translators in Sudan unless such 
activity is primarily for the dissemination of written publications in 
Sudan.
    (d) This section does not authorize:
    (1) Transactions for the development, production, design, or 
marketing of software;
    (2) Transactions for the development, production, design, or 
marketing of technology specifically controlled by the International 
Traffic in Arms Regulations, 22 CFR parts 120 through 130 (TAR), the 
Export Administration Regulations, 15 CFR parts 730 through 774 (EAR), 
or the Department of Energy Regulations set forth at 10 CFR part 810.

[[Page 75471]]

    (3) The exportation of information or technology subject to the 
authorization requirements of 10 CFR part 810, or Restricted Data as 
defined in section 11 y. of the Atomic Energy Act of 1954, as amended, 
or of other information, data, or technology the release of which is 
controlled under the Atomic Energy Act and regulations therein;
    (4) The exportation of information subject to license application 
requirements under the EAR. These EAR license application requirements 
cover not only the exportation of information controlled on the 
Commerce Control List, 15 CFR part 774, but also the exportation of any 
information subject to the EAR where a U.S. person knows or has reason 
to know that the information will be used, directly or indirectly, with 
respect to certain nuclear, missile, chemical and biological weapons, 
and nuclear-maritime end-uses. In addition, U.S. persons are precluded 
from exporting any information subject to the EAR to certain restricted 
end-users, as provided in the Commerce Department's end-user and end-
use based controls set forth at 15 CFR part 744; or
    (5) The exportation of information subject to licensing 
requirements under the ITAR, or exchanges of information that are 
subject to regulation by other government agencies.

PART 560--IRANIAN TRANSACTIONS REGULATIONS

0
6. The authority citation for part 560 continues to read as follows:

    Authority: 3 U.S.C. 301; 18 U.S.C. 2339B, 2332d; 22 U.S.C. 
2349aa-9; 31 U.S.C. 321(b); 50 U.S.C. 1601-1651, 1701-1706; Pub. L. 
101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Pub. L. 106-387, 114 
Stat. 1549; E.O. 12613, 52 FR 41940, 3 CFR, 1987 Comp., p. 256; E.O. 
12957, 60 FR 14615, 3 CFR, 1995 Comp., p. 332; E.O. 12959, 60 FR 
24757, 3 CFR, 1995, Comp., 356; E.O. 13059, 62 FR 44531, 3 CFR, 1997 
Comp., p. 217.

Subpart E--Licenses, Authorizations, and Statements of Licensing 
Policy

0
7. Add a new Sec.  560.538 to subpart E to read as follows:


Sec.  560.538  Authorized transactions necessary and ordinarily 
incident to publishing.

    (a) To the extent that such activities are not exempt from this 
part, and subject to the restrictions set forth in paragraphs (b) 
through (d) of this section, U.S. persons are authorized to engage in 
all transactions necessary and ordinarily incident to the publishing 
and marketing of manuscripts, books, journals, and newspapers 
(collectively, ``written publications''), in paper or electronic 
format. This section does not apply if the parties to the transactions 
described in this paragraph include the Government of Iran. For the 
purposes of this section, the term ``Government of Iran'' includes the 
state and the Government of Iran, as well as any political subdivision, 
agency, or instrumentality thereof, which includes the Central Bank of 
Islamic Republic of Iran; and any person acting or purporting to act 
directly or indirectly on behalf of any of the foregoing with respect 
to the transactions described in this paragraph. For the purposes of 
this section, the term ``Government of Iran'' does not include any 
academic and research institutions and their personnel. Pursuant to 
this section, the following activities are not prohibited, provided 
that U.S. persons ensure that they are not engaging, without specific 
authorization, in the activities identified in paragraph (d) of this 
section:
    (1) Commissioning and making advance payments for identifiable 
written publications not yet in existence, to the extent consistent 
with industry practice;
    (2) Collaborating on the creation and enhancement of written 
publications;
    (3) Augmenting written publications through the addition of items 
such as photographs, artwork, translation, and explanatory text;
    (4) Substantive editing of written publications;
    (5) Payment of royalties for written publications;
    (6) Creating or undertaking a marketing campaign to promote a 
written publication; and
    (7) Other transactions necessary and ordinarily incident to the 
publishing and marketing of written publications as described in this 
paragraph (a).
    (b) This section does not authorize transactions involving the 
provision of goods or services not necessary and ordinarily incident to 
the publishing and marketing of written publications as described 
above. For example, this section does not authorize U.S. persons:
    (1) To provide or receive individualized or customized services 
(including, but not limited to, accounting, legal, design, or 
consulting services), other than those necessary and ordinarily 
incident to the publishing and marketing of written publications, even 
though such individualized or customized services are delivered through 
the use of information and informational materials;
    (2) To create or undertake for any person a marketing campaign with 
respect to any service or product other than a written publication, or 
to create or undertake a marketing campaign of any kind for the benefit 
of the Government of Iran;
    (3) To engage in the exportation or importation of goods, other 
than information and informational materials, to or from Iran; or
    (4) To operate a publishing house, sales outlet, or other office in 
Iran.
    (c) This section does not authorize U.S. persons to engage the 
services of publishing houses or translators in Iran unless such 
activity is primarily for the dissemination of written publications in 
Iran.
    (d) This section does not authorize:
    (1) Transactions for the development, production, design, or 
marketing of software;
    (2) Transactions for the development, production, design, or 
marketing of technology specifically controlled by the International 
Traffic in Arms Regulations, 22 CFR parts 120 through 130 (ITAR), the 
Export Administration Regulations, 15 CFR parts 730 through 774 (EAR), 
or the Department of Energy Regulations set forth at 10 CFR part 810.
    (3) The exportation of information or technology subject to the 
authorization requirements of 10 CFR part 810, or Restricted Data as 
defined in section 11 y. of the Atomic Energy Act of 1954, as amended, 
or of other information, data, or technology the release of which is 
controlled under the Atomic Energy Act and regulations therein;
    (4) The exportation of information subject to license application 
requirements under the EAR. These EAR license application requirements 
cover not only the exportation of information controlled on the 
Commerce Control List, 15 CFR part 774, but also the exportation of any 
information subject to the EAR where a U.S. person knows or has reason 
to know that the information will be used, directly or indirectly, with 
respect to certain nuclear, missile, chemical and biological weapons, 
and nuclear-maritime end-uses. In addition, U.S. persons are precluded 
from exporting any information subject to the EAR to certain restricted 
end-users, as provided in the Commerce Department's end-user and end-
use based controls set forth at 15 CFR part 744; or
    (5) The exportation of information subject to licensing 
requirements under the ITAR, or exchanges of information that are 
subject to regulation by other government agencies.


[[Page 75472]]


    Dated: December 10, 2004.
Robert W. Werner,
Director, Office of Foreign Assets Control.

    Approved: December 13, 2004.
Juan C. Zarate,
Assistant Secretary, Terrorist Financing and Financial Crimes, 
Department of the Treasury.
[FR Doc. 04-27717 Filed 12-14-04; 5:07 pm]
BILLING CODE 4810-25-P