Federal Register / Vol. 75, No. 46 / Wednesday, March 10, 2010 / Rules and Regulations 10997 

describe one of the two payment or 

financing terms for authorized exports 

from the United States to Cuba pursuant 

to the Trade Sanctions Reform and 

Export Enhancement Act of 2000. 

DATES: Effective Date: March 9, 2010. 

FOR FURTHER INFORMATION CONTACT: 

Assistant Director for Compliance, 

Outreach & Implementation, tel.: 202/ 

622–2490, Assistant Director for 

Licensing, tel.: 202/622–2480, Assistant 

Director for Policy, tel.: 202/622–4855, 

Office of Foreign Assets Control, or 

Chief Counsel (Foreign Assets Control), 

tel.: 202/622–2410, Office of the General 

Counsel, Department of the Treasury 

(not toll free numbers). 

SUPPLEMENTARY INFORMATION: 

Electronic and Facsimile Availability 

This document and additional 

information concerning OFAC are 

available from OFAC’s Web site (http:// 

www.treas.gov/ofac) or via facsimile 

through a 24-hour fax-on demand 

service, tel.: 202–622–0077. 

Background 

Section 908(b)(1) of the Trade 

Sanctions Reform and Export 

Enhancement Act of 2000 (22 U.S.C. 

7207(b)(1)) (‘‘TSRA’’) specifies that the 

only payment or financing terms U.S. 

persons may provide for authorized 

sales of agricultural commodities or 

products to Cuba or any person in Cuba 

are (1) ‘‘payment of cash in advance,’’ or 

(2) financing by third-country financial 

institutions (excluding U.S. persons or 

Government of Cuba entities). On 

February 22, 2005, OFAC amended 

section 515.533 of the Cuban Assets 

Control Regulations, 31 CFR part 515 

(the ‘‘CACR’’), to clarify that the term 

‘‘payment of cash in advance’’ means 

that payment is received by the seller or 

the seller’s agent prior to shipment of 

the goods from the port at which they 

are loaded. 

OFAC is further amending section 

515.533 of the CACR to implement 

Section 619 of the Omnibus 

Appropriations Act, 2010 (Pub. L. 111– 

117, 123 Stat. 3034), which directs that 

during Fiscal Year 2010, for the 

purposes of TSRA, ‘‘* * * the term 

‘payment of cash in advance’ shall be 

interpreted as payment before the 

transfer of title to, and control of, the 

exported items to the Cuban purchaser.’’ 

Public Participation 

Because the amendments of the CACR 

involve a foreign affairs function, 

Executive Order 12866 and the 

provisions of the Administrative 

Procedure Act (5 U.S.C. 553) 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. 

Paperwork Reduction Act 

The collections of information related 

to the CACR are contained in the 

Reporting, Procedures and Penalties 

Regulations, 31 CFR part 501. 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 in 31 CFR Part 515 

Banks, Banking, Cuba, Currency, 

Exports, Foreign trade. 

■ For the reasons set forth in the 

preamble, the Department of the 

Treasury’s Office of Foreign Assets 

Control amends 31 CFR part 515 as set 

forth below: 

PART 515—CUBAN ASSETS 

CONTROL REGULATIONS 

■ 1. The authority citation for part 515 

is revised to read as follows: 

Authority: 18 U.S.C. 2332d; 22 U.S.C. 

2370(a), 6001–6010; 22 U.S.C. 7201–7211; 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. 104–114, 110 Stat. 785 (22 U.S.C. 

6082); Pub. L. 105–277, 112 Stat. 2681; Pub. 

L. 111–8, 123 Stat. 524; Pub. L. 111–117, 123 

Stat. 3034; E.O. 9193, 7 FR 5205, 3 CFR, 

1938–1943 Comp., p. 1174; 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 

■ 2. Amend § 515.533 by revising 

paragraph (a)(2)(i) to read as follows: 

§ 515.533 Transactions incident to 

exportations from the United States and 

reexportations of 100% U.S.-origin items to 

Cuba; negotiation of executory contracts. 

(a) * * * 

(2) * * * 

(i)(A) Payment of cash in advance. 

Except as provided in paragraph 

(a)(2)(i)(B) of this section, for the 

purposes of this section, the term 

‘‘payment of cash in advance’’ means 

that payment is received by the seller or 

the seller’s agent prior to shipment of 

the goods from the port at which they 

are loaded; 

(B) Payment of cash in advance 

during Fiscal Year 2010. For sales of 

agricultural items delivered to Cuba 

between October 1, 2009, and 

September 30, 2010, or delivered 

pursuant to a contract entered into 

between October 1, 2009, and 

September 30, 2010, and shipped within 

twelve months from the signing of the 

contract, the term ‘‘payment of cash in 

advance’’ shall mean payment before the 

transfer of title to, and control of, the 

exported items to the Cuban purchaser; 

Note to § 515.533(a)(2)(i)(B): The payment 

rule set forth in this paragraph is required by 

Section 619 of the Omnibus Appropriations 

Act, 2010 (Pub. L. 111–117). 

* * * * * 

Dated: March 5, 2010. 

Adam J. Szubin, 

Director, Office of Foreign Assets Control. 

[FR Doc. 2010–5153 Filed 3–9–10; 8:45 am] 

BILLING CODE 4810–AL–P 

DEPARTMENT OF THE TREASURY 

Office of Foreign Assets Control 

31 CFR Parts 515, 538, and 560 

Cuban Assets Control Regulations; 

Sudanese Sanctions Regulations; 

Iranian Transactions Regulations 

AGENCY: Office of Foreign Assets 

Control, Treasury. 

ACTION: Final rule. 

SUMMARY: The Department of the 

Treasury’s Office of Foreign Assets 

Control (‘‘OFAC’’) is amending the 

Sudanese Sanctions Regulations and the 

Iranian Transactions Regulations to 

authorize the exportation of certain 

services and software incident to the 

exchange of personal communications 

over the Internet. Similarly, OFAC is 

amending the Cuban Assets Control 

Regulations to authorize the exportation 

of certain services incident to the 

exchange of personal communications 

over the Internet. 

DATES: Effective Date: March 8, 2010. 

FOR FURTHER INFORMATION CONTACT: 

Assistant Director for Compliance, 

Outreach & Implementation, tel.: 202/ 

622–2490, Assistant Director for 

Licensing, tel.: 202/622–2480; Assistant 

Director for Policy, tel.: 202/622–4855, 

Office of Foreign Assets Control, or 

Chief Counsel (Foreign Assets Control), 

tel.: 202/622–2410, Office of the General 

Counsel, Department of the Treasury 

(not toll free numbers). 

SUPPLEMENTARY INFORMATION: 


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10998 Federal Register / Vol. 75, No. 46 / Wednesday, March 10, 2010 / Rules and Regulations 

Electronic and Facsimile Availability 

This document and additional 

information concerning OFAC are 

available from OFAC’s Web site (http:// 

www.treas.gov/ofac). Certain general 

information pertaining to OFAC’s 

sanctions programs also is available via 

facsimile through a 24-hour fax-ondemand service, tel.: 202–622–0077. 

Background 

OFAC is amending the Sudanese 

Sanctions Regulations, 31 CFR part 538 

(the ‘‘SSR’’), and the Iranian 

Transactions Regulations, 31 CFR part 

560 (the ‘‘ITR’’), to authorize the 

exportation to persons in Sudan and 

Iran, respectively, of certain services 

and software incident to the exchange of 

personal communications over the 

Internet. 

Unless authorized by a general or 

specific license, or otherwise exempt, 

the exportation of such services and 

software from the United States or by a 

United States person, wherever located, 

to Sudan or Iran is prohibited. Pursuant 

to section 538.205 of the SSR, the 

exportation or reexportation, directly or 

indirectly, to Sudan of any goods, 

technology, or services from the United 

States or by a United States person, 

wherever located, or requiring the 

issuance of a license by a Federal 

agency, is prohibited. As set forth in 

section 538.212(g)(1) of the SSR, 

however, this prohibition does not 

apply with respect to most exports and 

reexports to the Specified Areas of 

Sudan, as defined in section 538.320. In 

addition, pursuant to section 538.201 of 

the SSR, all property and interests in 

property of the Government of Sudan 

that are or come within the United 

States, or that are or come within the 

possession or control of U.S. persons, 

including their overseas branches, are 

blocked and may not be transferred, 

paid, exported, withdrawn or otherwise 

dealt in. The term property, as defined 

in section 538.310 of the SSR, 

specifically includes services. As 

defined in section 538.305 of the SSR, 

the term Government of Sudan does not 

include the regional government of 

Southern Sudan. 

Section 560.204 of the ITR provides 

that the exportation, reexportation, sale, 

or supply, directly or indirectly, from 

the United States or by a U.S. person, 

wherever located, of any goods, 

technology, or services to Iran or the 

Government of Iran is prohibited. The 

Iran-Iraq Arms Non-Proliferation Act of 

1992 (Pub. L. 102–484) (50 U.S.C. 1701 

note) (‘‘IIANPA’’) and section 6 of 

Executive Order 13059 of August 19, 

1997 (‘‘Prohibiting Certain Transactions 

With Respect to Iran’’) (62 FR 44531, 

August 21, 1997), generally preclude 

OFAC from authorizing—whether by 

general or specific license—the 

exportation to Iran of any goods or 

technology listed on the Commerce 

Control List (‘‘CCL’’) in the Export 

Administration Regulations, 15 CFR 

parts 730 through 774 (the ‘‘EAR’’), 

unless the President exercises the 

waiver authority provided in section 

1606 of IIANPA. On September 27, 

1994, the President delegated his 

authorities under IIANPA to the 

Secretary of State. Since much of the 

software necessary for the exchange of 

personal communications or the sharing 

of information over the Internet is listed 

on the CCL, the exercise of this waiver 

authority is necessary before OFAC may 

generally or specifically license the 

exportation of such software to Iran. 

On December 10, 2009, the 

Department of State determined that it 

is essential to the national interest of the 

United States to exercise the waiver 

authority in section 1606 of IIANPA 

with respect to the exportation to Iran 

of certain dual-use software classified as 

mass market software by the Department 

of Commerce (‘‘Commerce’’) and 

essential for the exchange of personal 

communications and/or sharing of 

information over the Internet. In 

reporting this determination to Congress 

on December 15, 2009, the Department 

of State explained that this software is 

necessary to foster and support the free 

flow of information to individual 

Iranian citizens and, therefore, is 

essential to the national interest of the 

United States. 

As events in Iran since last June’s 

Presidential election there have shown, 

personal Internet-based 

communications are a vital tool for 

change. Similar considerations apply in 

Sudan. Accordingly, to ensure that the 

sanctions on Sudan and Iran do not 

have an unintended chilling effect on 

the ability of companies to provide 

personal communications tools to 

individuals in those countries, OFAC is 

adding new § 538.533 to the SSR and 

new § 560.540 to the ITR. These new 

sections authorize the exportation from 

the United States or by U.S. persons, 

wherever located, to persons in Sudan 

and Iran, respectively, of certain 

services and software incident to the 

exchange of personal communications 

over the Internet, such as instant 

messaging, chat and e-mail, social 

networking, sharing of photos and 

movies, web browsing, and blogging. To 

qualify for this authorization, such 

services and software must be publicly 

available at no cost to the user. In 

addition, such software qualifies for this 

authorization only if it is (1) Classified 

as ‘‘EAR99’’ under the EAR; (2) not 

subject to the EAR; or (3) classified by 

Commerce as mass market software 

under export control classification 

number (‘‘ECCN’’) 5D992 of the EAR. 

These new sections of the SSR and the 

ITR, however, do not authorize the 

direct or indirect exportation of services 

or software with knowledge or reason to 

know that such services or software are 

intended for the Government of Sudan 

or the Government of Iran. 

New § 538.533 of the SSR and new 

§ 560.540 of the ITR each contain a 

statement of licensing policy in addition 

to the general licenses authorizing the 

exportation of certain Internet-based 

personal communications services and 

software. Paragraph (c) of each of these 

two sections provides that specific 

licenses may be issued on a case-by-case 

basis for the exportation of services and 

software not covered by the general 

license that are incident to the sharing 

of information over the Internet. To be 

eligible for consideration under this 

policy, software must be classified as 

‘‘EAR99,’’ not subject to the EAR, or 

classified by Commerce as mass market 

software under ECCN 5D992 of the EAR. 

OFAC also is amending the Cuban 

Assets Control Regulations, 31 CFR part 

515 (the ‘‘CACR’’), to add a similar 

general license authorizing the 

exportation to persons in Cuba of 

certain services incident to the exchange 

of personal communications over the 

Internet. Unless authorized by a general 

or specific license, the exportation of 

such services from the United States or 

by persons subject to U.S. jurisdiction to 

Cuba is prohibited. Section 515.201 of 

the CACR prohibits all dealings in, 

including, without limitation, transfers, 

withdrawals, or exportations of, any 

property in which Cuba or a Cuban 

national has any interest of any nature 

whatsoever, direct or indirect, by any 

person subject to the jurisdiction of the 

United States. The term property, as 

defined in § 515.311 of the CACR, 

specifically includes services. 

On April 13, 2009, the President 

stated that the promotion of democracy 

and human rights in Cuba is in the 

national interest of the United States 

and is a key component of U.S. foreign 

policy in the Americas. The President 

announced an initiative to pursue these 

goals by, among other things, increasing 

the flow of information to the Cuban 

people. Consistent with that initiative, 

OFAC is adding new § 515.578 to the 

CACR to authorize the exportation from 

the United States or by persons subject 

to U.S. jurisdiction to persons in Cuba 

of certain services incident to the 

exchange of personal communications 


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Federal Register / Vol. 75, No. 46 / Wednesday, March 10, 2010 / Rules and Regulations 10999 

over the Internet, such as instant 

messaging, chat and email, social 

networking, sharing of photos and 

movies, web browsing, and blogging. To 

qualify for this authorization, the 

services must be publicly available at no 

cost to the user. New § 515.578 does not 

authorize the direct or indirect 

exportation of services with knowledge 

or reason to know that such services are 

intended for a prohibited official of the 

Government of Cuba, as defined in 

§ 515.337 of the CACR, or a prohibited 

member of the Cuban Communist Party, 

as defined in § 515.338. 

Like the new authorization sections 

added to the SSR and ITR, new 

§ 515.578 contains a statement of 

licensing policy in addition to the 

general license authorizing the 

exportation of certain Internet-based 

personal communications services. 

Paragraph (c) of § 515.578 provides that 

specific licenses may be issued on a 

case-by-case basis for the exportation of 

services not covered by the general 

license that are incident to the sharing 

of information over the Internet. 

The new general license for Cuba, 

unlike those for Sudan and Iran, does 

not include an authorization for the 

exportation of software, because the 

exportation of goods and technology, 

including software, to Cuba is separately 

licensed or otherwise authorized by 

Commerce under the EAR. Section 

515.533 of the CACR generally licenses 

all transactions ordinarily incident to 

the exportation of items from the United 

States, or the reexportation of 100% 

U.S.-origin items from a third country, 

to any person in Cuba, provided the 

exportation or reexportation is licensed 

or otherwise authorized by Commerce 

under the EAR, and provided further 

that only certain specified payment and 

financing terms may be used. 

By the addition of the authorizations 

described above to the SSR, ITR, and 

CACR, OFAC hopes to encourage the 

exchange of personal communications 

over the Internet by persons in Sudan, 

Iran, and Cuba. 

Public Participation 

Because the amendments of the 

CACR, SSR, and ITR involve a foreign 

affairs function, Executive Order 12866 

and the provisions of the Administrative 

Procedure Act (5 U.S.C. 553) 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. 

Paperwork Reduction Act 

The collections of information related 

to the CACR, SSR, and ITR are 

contained in the Reporting, Procedures 

and Penalties Regulations, 31 CFR part 

501. 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 

Banks, Banking, Communications, 

Cuba, Exports, Foreign trade. 

31 CFR Part 538 

Banks, Banking, Communications, 

Exports, Foreign trade, Sudan. 

31 CFR Part 560 

Banks, Banking, Communications, 

Exports, Foreign trade, Iran. 

■ For the reasons set forth in the 

preamble, the Department of the 

Treasury’s Office of Foreign Assets 

Control amends 31 CFR parts 515, 538, 

and 560 as follows: 

PART 515—CUBAN ASSETS 

CONTROL REGULATIONS 

■ 1. The authority citation for part 515 

is revised to read as follows: 

Authority: 18 U.S.C. 2332d; 22 U.S.C. 

2370(a), 6001–6010; 22 U.S.C. 7201–7211; 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. 104–114, 110 Stat. 785 (22 U.S.C. 

6082); Pub. L. 105–277, 112 Stat. 2681; Pub. 

L. 111–8, 123 Stat. 524; E.O. 9193, 7 FR 5205, 

3 CFR, 1938–1943 Comp., p. 1174; 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 

■ 2. Add a new § 515.578 to subpart E 

to read as follows: 

§ 515.578 Exportation of certain services 

incident to Internet-based communications. 

(a) Except as provided in paragraph 

(b) of this section, the exportation from 

the United States or by persons subject 

to U.S. jurisdiction to persons in Cuba 

of services incident to the exchange of 

personal communications over the 

Internet, such as instant messaging, chat 

and email, social networking, sharing of 

photos and movies, web browsing, and 

blogging, is authorized, provided that 

such services are publicly available at 

no cost to the user. 

(b) This section does not authorize: 

(1) The direct or indirect exportation 

of services with knowledge or reason to 

know that such services are intended for 

a prohibited official of the Government 

of Cuba, as defined in § 515.337 of this 

part, or a prohibited member of the 

Cuban Communist Party, as defined in 

§ 515.338 of this part. 

(2) The direct or indirect exportation 

of Internet connectivity services or 

telecommunications transmission 

facilities (such as satellite links or 

dedicated lines). 

Note to § 515.578(b)(2): For general 

licenses related to the provision of 

telecommunications services between the 

United States and Cuba and contracts for 

telecommunications services provided to 

particular individuals in Cuba, see 

§ 515.542(b) and § 515.542(c), respectively, of 

this part. For a general license and a 

statement of specific licensing policy related 

to the establishment of telecommunications 

facilities linking the United States or third 

countries and Cuba, see § 515.542(d) of this 

part. 

(3) The direct or indirect exportation 

of web-hosting services that are for 

purposes other than personal 

communications (e.g., web-hosting 

services for commercial endeavors) or of 

domain name registration services. 

(4) The direct or indirect exportation 

of any items to Cuba. 

Note to § 515.578(b)(4): For the rules 

related to transactions ordinarily incident to 

the exportation or reexportation of items, 

including software, to Cuba, see §§ 515.533 

and 515.559 of this part. 

(c) Specific licenses may be issued on 

a case-by-case basis for the exportation 

of other services incident to the sharing 

of information over the Internet. 

PART 538—SUDANESE SANCTIONS 

REGULATIONS 

■ 3. The authority citation for part 538 

is revised to read as follows: 

Authority: 3 U.S.C. 301; 18 U.S.C. 2339B, 

2332d; 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); 22 U.S.C. 7201– 

7211; Pub. L. 109–344, 120 Stat. 1869; Pub. 

L. 110–96, 121 Stat. 1011 (50 U.S.C. 1705 

note); E.O. 13067, 62 FR 59989, 3 CFR, 1997 

Comp., p. 230; E.O. 13412, 71 FR 61369, 3 

CFR, 2006 Comp., p. 244. 

Subpart E—Licenses, Authorizations, 

and Statements of Licensing Policy 

■ 4. Add a new § 538.533 to subpart E 

to read as follows: 


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11000 Federal Register / Vol. 75, No. 46 / Wednesday, March 10, 2010 / Rules and Regulations 

§ 538.533 Exportation of certain services 

and software incident to Internet-based 

communications. 

(a) To the extent that such 

transactions are not exempt from the 

prohibitions of this part and subject to 

the restrictions set forth in paragraph (b) 

of this section, the following 

transactions are authorized: 

(1) The exportation from the United 

States or by U.S. persons, wherever 

located, to persons in Sudan of services 

incident to the exchange of personal 

communications over the Internet, such 

as instant messaging, chat and email, 

social networking, sharing of photos and 

movies, web browsing, and blogging, 

provided that such services are publicly 

available at no cost to the user. 

(2) The exportation from the United 

States or by U.S. persons, wherever 

located, to persons in Sudan of software 

necessary to enable the services 

described in paragraph (a)(1) of this 

section, provided that such software is 

classified as ‘‘EAR99’’ under the Export 

Administration Regulations, 15 CFR 

parts 730 through 774 (the ‘‘EAR’’), is not 

subject to the EAR, or is classified by 

the U.S. Department of Commerce 

(‘‘Commerce’’) as mass market software 

under export control classification 

number (‘‘ECCN’’) 5D992 of the EAR, 

and provided further that such software 

is publicly available at no cost to the 

user. 

(b) This section does not authorize: 

(1) The direct or indirect exportation 

of services or software with knowledge 

or reason to know that such services or 

software are intended for the 

Government of Sudan. 

(2) The direct or indirect exportation 

of any goods or technology listed on the 

Commerce Control List in the EAR, 15 

CFR part 774, supplement No. 1 

(‘‘CCL’’), except for software necessary to 

enable the services described in 

paragraph (a)(1) of this section that is 

classified by Commerce as mass market 

software under ECCN 5D992 of the EAR. 

(3) The direct or indirect exportation 

of Internet connectivity services or 

telecommunications transmission 

facilities (such as satellite links or 

dedicated lines). 

(4) The direct or indirect exportation 

of web-hosting services that are for 

purposes other than personal 

communications (e.g., web-hosting 

services for commercial endeavors) or of 

domain name registration services. 

(c) Specific licenses may be issued on 

a case-by-case basis for the exportation 

of other services and software incident 

to the sharing of information over the 

Internet, provided the software is 

classified as ‘‘EAR99,’’ not subject to the 

EAR, or classified by Commerce as mass 

market software under ECCN 5D992 of 

the EAR. 

(d) Nothing in this section or in any 

license issued pursuant to paragraph (c) 

of this section relieves the exporter from 

compliance with the export license 

application requirements of another 

Federal agency. 

PART 560—IRANIAN TRANSACTIONS 

REGULATIONS 

■ 5. The authority citation for part 560 

is revised 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); 

22 U.S.C. 7201–7211; Pub. L. 110–96, 121 

Stat. 1011 (50 U.S.C. 1705 note); 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., p. 356; E.O. 13059, 62 FR 44531, 3 

CFR, 1997 Comp., p. 217. 

Subpart E—Licensing, Authorizations, 

and Statements of Licensing Policy 

■ 6. Add a new § 560.540 to subpart E 

to read as follows: 

§ 560.540 Exportation of certain services 

and software incident to Internet-based 

communications. 

(a) To the extent that such 

transactions are not exempt from the 

prohibitions of this part and subject to 

the restrictions set forth in paragraph (b) 

of this section, the following 

transactions are authorized: 

(1) The exportation from the United 

States or by U.S. persons, wherever 

located, to persons in Iran of services 

incident to the exchange of personal 

communications over the Internet, such 

as instant messaging, chat and email, 

social networking, sharing of photos and 

movies, web browsing, and blogging, 

provided that such services are publicly 

available at no cost to the user. 

(2) The exportation from the United 

States or by U.S. persons, wherever 

located, to persons in Iran of software 

necessary to enable the services 

described in paragraph (a)(1) of this 

section, provided that such software is 

classified as ‘‘EAR99’’ under the Export 

Administration Regulations, 15 CFR 

parts 730 through 774 (the ‘‘EAR’’), is not 

subject to the EAR, or is classified by 

the U.S. Department of Commerce 

(‘‘Commerce’’) as mass market software 

under export control classification 

number (‘‘ECCN’’) 5D992 of the EAR, 

and provided further that such software 

is publicly available at no cost to the 

user. 

(b) This section does not authorize: 

(1) The direct or indirect exportation 

of services or software with knowledge 

or reason to know that such services or 

software are intended for the 

Government of Iran. 

(2) The direct or indirect exportation 

of any goods or technology listed on the 

Commerce Control List in the EAR, 15 

CFR part 774, supplement No. 1 

(‘‘CCL’’), except for software necessary to 

enable the services described in 

paragraph (a)(1) of this section that is 

classified by Commerce as mass market 

software under ECCN 5D992 of the EAR. 

(3) The direct or indirect exportation 

of Internet connectivity services or 

telecommunications transmission 

facilities (such as satellite links or 

dedicated lines). 

(4) The direct or indirect exportation 

of web-hosting services that are for 

purposes other than personal 

communications (e.g., web-hosting 

services for commercial endeavors) or of 

domain name registration services. 

(c) Specific licenses may be issued on 

a case-by-case basis for the exportation 

of other services and software incident 

to the sharing of information over the 

Internet, provided the software is 

classified as ‘‘EAR99,’’ not subject to the 

EAR, or classified by Commerce as mass 

market software under ECCN 5D992 of 

the EAR. 

Dated: March 3, 2010. 

Adam J. Szubin, 

Director, Office of Foreign Assets Control. 

[FR Doc. 2010–5023 Filed 3–8–10; 10:00 am] 

BILLING CODE 4810–AL–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[Docket No. USCG–2008–0124] 

RIN 1625–AA87 

Security Zone; Freeport LNG Basin, 

Freeport, TX 

AGENCY: Coast Guard, DHS. 

ACTION: Final rule. 

SUMMARY: The Coast Guard has 

established a permanent security zone 

in the Freeport LNG Basin. This security 

zone is needed to protect vessels, 

waterfront facilities, the public, and 

other surrounding areas from 

destruction, loss, or injury caused by 

sabotage, subversive acts, accidents, or 

other actions of a similar nature. Entry 

into this zone is prohibited, except for 

vessels that have obtained the express 


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