Federal Register / Vol. 74, No. 172 / Tuesday, September 8, 2009 / Rules and Regulations 45985 

The FAA’s authority to issue rules 

regarding aviation safety is found in 

Title 49 of the United States Code. 

Subtitle I, Section 106 describes the 

authority of the FAA Administrator. 

Subtitle VII, Aviation Programs, 

describes in more detail the scope of the 

agency’s authority. 

This rulemaking is promulgated 

under the authority described in 

Subtitle VII, Part A, Subpart I, Section 

40103. Under that section, the FAA is 

charged with prescribing regulations to 

assign the use of the airspace necessary 

to ensure the safety of aircraft and the 

efficient use of airspace. This regulation 

is within the scope of that authority as 

it establishes a low altitude Area 

Navigation route (T-Route) at Rockford, 

IL. 

Environmental Review 

The FAA has determined that this 

action qualifies for categorical exclusion 

under the National Environmental 

Policy Act in accordance with FAA 

Order 1050.1E, ‘‘Environmental 

Impacts: Policies and Procedures,’’ 

paragraph 311a, 311b, and 311k. This 

airspace action is not expected to cause 

any potentially significant 

environmental impacts, and no 

extraordinary circumstances exist that 

warrant preparation of an 

environmental assessment. 

List of Subjects in 14 CFR Part 71 

Airspace, Incorporation by reference, 

Navigation (air). 

Adoption of the Amendment 

■ In consideration of the foregoing, the 

Federal Aviation Administration 

amends 14 CFR part 71 as follows: 

PART 71—DESIGNATION OF CLASS A, 

B, C, D, AND E AIRSPACE AREAS; AIR 

TRAFFIC SERVICE ROUTES; AND 

REPORTING POINTS 

■ 1. The authority citation for part 71 

continues to read as follows: 

Authority: 49 U.S.C. 106(g), 40103, 40113, 

40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959– 

1963 Comp., p. 389. 

§ 71.1 [Amended] 

■ 2. The incorporation by reference in 

14 CFR 71.1 of FAA Order 7400.9S, 

Airspace Designations and Reporting 

Points, signed October 3, 2008, and 

effective October 31, 2008, is amended 

as follows: 

Paragraph 6011 United States Area 

Navigation Routes. 

* * * * * 

T–265 KELSI, IL to VEENA, WI [New] 

KELSI, IL WP 

(Lat. 41°26′20′′ N., long. 88°59′29′′ W.) 

SIMMN, IL WP 

(Lat. 41°58′50′′ N., long. 88°52′42′′ W.) 

BULLZ, IL WP 

(Lat. 42°27′27′′ N., long. 88°46′17′′ W.) 

VEENA, WI WP 

(Lat. 42°42′18′′ N., long. 88°18′14′′ W.) 

* * * * * 

Issued in Washington, DC, on September 1, 

2009. 

Ellen Crum, 

Acting Manager, Airspace and Rules Group. 

[FR Doc. E9–21432 Filed 9–4–09; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Parts 736, 740 and 746 

[Docket No. 090414648–9652–01] 

RIN 0694–AE60 

Cuba: Revisions to Gift Parcel and 

Baggage Restrictions, Creation of 

License Exception for Donated 

Consumer Communications Devices 

and Expansion of Licensing Policy 

Regarding Telecommunications 

AGENCY: Bureau of Industry and 

Security, Department of Commerce. 

ACTION: Final rule. 

SUMMARY: This rule revises two existing 

License Exceptions concerning exports 

and reexports of gift parcels to Cuba and 

of personal baggage taken by individuals 

leaving the United States for travel to 

Cuba. It also creates a new License 

Exception authorizing the export and 

reexport to Cuba of certain donated 

consumer communications devices, 

including certain computers and 

software, mobile phones, and satellite 

receivers. Finally, this rule revises the 

scope of existing licensing policy 

regarding certain telecommunications 

links including satellite radio and 

satellite television services. These 

actions are among those directed by the 

President on April 13, 2009 to enhance 

the free flow of information to and from 

Cuba and to promote contacts between 

Americans and their relatives who 

reside in Cuba as a means of 

encouraging positive change in Cuba 

and are consistent with the ongoing 

support the United States has provided 

to individuals and nongovernmental 

organizations that support democracybuilding efforts in Cuba. These actions 

do not suspend or terminate the United 

States embargo of Cuba. 

DATES: Effective Date: This rule is 

effective September 3, 2009. 

ADDRESSES: Although there is no 

comment period for this final rule, BIS 

welcomes any comments from the 

public on the amendments made by this 

rule. Comments may be submitted by email directly to BIS at 

publiccomments@bis.doc.gov (please 

refer to RIN 0694–AE60 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, 

NW., Washington, DC 20230. Comments 

on the information collection contained 

in this rule should also be sent to 

Jasmeet Seehra, Office of Management 

and Budget (OMB), by e-mail to 

jseehra@omb.eop.gov, or by fax to (202) 

395–7285. Refer to RIN 0694–AE60 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 

The United States maintains a 

comprehensive embargo on trade with 

Cuba. Pursuant to that embargo, all 

items that are subject to the Export 

Administration Regulations (EAR) 

require a license for export or reexport 

to Cuba unless authorized by a License 

Exception. BIS administers export and 

reexport restrictions on Cuba consistent 

with the goals of the embargo and with 

relevant legislation, including the 

Cuban Liberty and Democratic 

Solidarity Act of 1996 (LIBERTAD). 

Accordingly, BIS may issue specific or 

general authorizations for limited types 

of transactions that support the goals of 

United States policy while the embargo 

remains in effect. 

On April 13, 2009, the President 

directed the Secretary of the Treasury 

and the Secretary of Commerce, in 

consultation with the Secretary of State, 

to take certain actions to enhance the 

free flow of information to and from 

Cuba and to promote contacts between 

Americans and their relatives who 

reside in Cuba as a means of 

encouraging positive change in Cuba. In 

doing so, the President noted the United 

States policy of promoting democracy 

and human rights in Cuba and stated 

that ‘‘measures that decrease 

dependency of the Cuban people on the 

Castro regime and that promote contact 

between Cuban-Americans and their 

relatives in Cuba are means to 

encourage positive change in Cuba.’’ 

The policy of promoting human rights 

and democracy in Cuba has long been 

reflected in legislation. LIBERTAD’s 


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45986 Federal Register / Vol. 74, No. 172 / Tuesday, September 8, 2009 / Rules and Regulations 

purpose, in part, is to help the Cuban 

people regain their freedom and 

prosperity. In addition, even before 

LIBERTAD, the Cuban Democracy Act 

of 1992 reflected Congressional support 

for assistance to encourage democracy 

in Cuba, stating that the U.S. 

Government may provide assistance, 

through appropriate nongovernmental 

organizations, for the support of 

individuals and organizations to 

promote nonviolent democratic change 

in Cuba. 

This rule implements the portions of 

the President’s directive that relate to 

the regulations of the Department of 

Commerce by changing the existing 

License Exceptions ‘‘Gift Parcels and 

Humanitarian Donations (GFT)’’ and 

‘‘Baggage (BAG),’’ creating a new 

License Exception ‘‘Consumer 

Communications Devices (CCD)’’ and 

revising the scope of licensing policy 

applicable to certain 

telecommunications links and satellite 

radio and satellite television services. 

The changes made by this rule are 

intended to update, consistent with 

LIBERTAD and other relevant 

legislation, certain provisions of the 

United States embargo of Cuba to: (i) 

Address the impact of economic and 

technological changes that have taken 

place in recent years; and (ii) ensure 

that the embargo continues to support 

the goals of promoting democracy in 

Cuba and providing support for the 

Cuban people. None of the changes 

made by this rule suspend or terminate 

the United States embargo of Cuba. 

Specific Changes Implemented by This 

Rule 

Changes to License Exception Gift 

Parcels and Humanitarian Donations 

(GFT) 

License Exception Gift Parcels and 

Humanitarian Donations (GFT) (§ 740.12 

of the EAR) generally authorizes, among 

other things, exports and reexports of 

gift parcels by an individual (donor) 

addressed to an individual or to a 

religious, educational or charitable 

organization (donee) for the use of the 

donee or the donee’s immediate family. 

Prior to the publication of this rule, 

items eligible for export or reexport to 

Cuba in gift parcels were limited to food 

(including vitamins); medicines; 

medical supplies and devices (including 

hospital supplies and equipment for the 

handicapped); receive-only radio 

equipment for reception of commercial/ 

civil AM/FM and short wave publicly 

available frequency bands, and batteries 

for such equipment; and mobile phones 

covered by Export Control Classification 

Numbers (ECCNs) 5A991 or 5A992, 

software for those phones covered by 

ECCN 5D992, and batteries, memory 

cards, chargers and other accessories for 

such mobile phones. Additionally, the 

License Exception restricted recipients 

in Cuba to identified family members of 

the donor (grandparents, parents, 

siblings, children and grandchildren). 

Except for gift parcels of food, the 

License Exception restricted a donor to 

sending only one gift parcel per month 

to the same household in Cuba. The 

License Exception also limited the 

combined total domestic retail value of 

all items other than food included in a 

gift parcel to $400. 

This rule revises License Exception 

GFT to add clothing, personal hygiene 

items, seeds, veterinary medicines and 

supplies, fishing equipment and 

supplies, soap-making equipment, and 

non-sensitive items normally sent as 

gifts between individuals as items 

eligible for export or reexport to Cuba in 

gift parcels. The rule largely retains the 

restriction that precludes items listed in 

specific entries on the Commerce 

Control List. However, the rule does 

allow inclusion of consumer 

communications devices controlled by 

ECCNs 4A994, 4D994, 5A991, 5A992, 

5D991, and 5D992. These devices, 

which are described in more detail in 

the discussion of the new License 

Exception for consumer 

communications devices below, are 

widely available consumer products, 

such as personal computers, that 

facilitate communications. 

This rule also revises License 

Exception GFT to remove requirements 

that the donee be a member of the 

immediate family of the donor and that 

only one gift parcel per month be sent 

to the same household in Cuba. As 

revised, License Exception GFT 

authorizes a donor to send one gift 

parcel per month to any individual 

(other than certain Cuban Government 

or Cuban Communist Party officials) or 

to a charitable, educational, or religious 

organization in Cuba that is not 

administered or controlled by the Cuban 

government. For example, hospitals or 

schools administered or controlled by 

the Cuban Government are not eligible 

recipients under this License Exception. 

Further, this rule revises the License 

Exception to increase the combined 

total domestic retail value of all items 

included in a gift parcel from $400 to 

$800. 

Changes to License Exception Baggage 

(BAG) 

Prior to publication of this rule, and 

since 2004, the terms of License 

Exception BAG imposed a 44-pound 

weight limit on the personal baggage of 

most travelers from the United States to 

Cuba. This rule removes that limit. This 

change implements the President’s 

directive to lift weight restrictions on 

accompanied baggage. 

This rule does not remove or relax 

any other restrictions that apply to 

License Exception BAG. The regulations 

continue to require that individuals 

leaving the United States temporarily 

(i.e., traveling) must bring back items 

exported or reexported under this 

License Exception unless they consume 

the items abroad or are otherwise 

authorized to dispose of them under the 

EAR. 

Donated Consumer Communications 

Devices, Computers and Software 

Prior to publication of this rule, with 

the exception of certain items 

authorized by License Exception GFT, 

the export or reexport to Cuba of 

donated consumer communications 

devices required an individual validated 

license. 

This rule creates a narrowly tailored 

License Exception Consumer 

Communications Devices (CCD) to 

authorize the export and reexport to 

Cuba of donated consumer 

communications devices that are 

necessary to provide efficient and 

adequate telecommunications services 

between the United States and Cuba. In 

generally authorizing the export or 

reexport of donated consumer 

communication devices to Cuba through 

a new License Exception, this rule 

strengthens the United States’ 

commitment to the support of 

individuals and organizations to 

promote nonviolent democratic change 

in Cuba, consistent with the goals of 

LIBERTAD and the Cuban Democracy 

Act of 1992, and recognizes that recent 

changes in communications technology 

have facilitated the widespread 

dissemination of information and 

personal communications in ways that 

have become increasingly essential for 

democratic movements across the 

world. This rule is also consistent with 

the President’s goal, as stated in his 

April 13 memorandum, to promote 

contacts between Americans and their 

relatives who reside in Cuba as a means 

of encouraging positive change in Cuba. 

New License Exception CCD 

authorizes the export or reexport of 

specific commodities and software that 

are widely available for retail purchase 

and that are commonly used to 

exchange information and facilitate 

interpersonal communications. 

However, consistent with 22 U.S.C. 

6005(a), this new License Exception 

does not authorize U.S.-owned or 

controlled entities in third countries to 


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Federal Register / Vol. 74, No. 172 / Tuesday, September 8, 2009 / Rules and Regulations 45987 

engage in reexports of foreign produced 

commodities to Cuba for which no 

license would be issued by the Treasury 

Department pursuant to 31 CFR 

515.559. This License Exception is valid 

only for exports or reexports to Cuba. 

The commodities and software exported 

or reexported under this License 

Exception must be donated, but the 

License Exception provides no limits on 

value or frequency of shipments. 

Eligible end-users for items exported or 

reexported pursuant to this License 

Exception are individuals in Cuba other 

than designated Cuban Government and 

Communist Party officials, and also 

independent non-governmental 

organizations in Cuba. As is the case 

with exports or reexports under License 

Exception GFT, exports or reexports 

under License Exception CCD may not 

be made to organizations administered 

or controlled by the Cuban Government. 

The items authorized for export or 

reexport under the new License 

Exception are commodities and software 

(except ‘‘encryption source code’’) 

related to basic personal 

communications devices that are widely 

available for retail purchase in the 

United States. These items include: 

Mobile phones, including cellular and 

satellite telephones; subscriber 

information module (SIM) cards; 

personal digital assistants; laptop and 

desktop computers and peripherals such 

as monitors, graphics accelerator cards, 

data storage devices and media such as 

disk drives, flash drives, writable 

compact disks and floppy disks, 

keyboards, mice, and printers including 

commodities possessing IEEE 802.15.1 

‘‘Bluetooth’’ wireless personal area 

networking (WPAN) capability; Internet 

connectivity devices including those 

possessing IEEE 802.11 ‘‘Wi-Fi’’ and 

IEEE 802.16 ‘‘WiMax’’ wireless 

capabilities; satellite-based television 

and radio receivers; digital music and 

video players and recorders; personal 

two-way radios; digital cameras and 

memory cards therefor; and batteries, 

chargers, carrying cases and similar 

accessories for the equipment 

authorized by this rule. This rule also 

authorizes the export and reexport of 

basic software for laptop and desktop 

computers such as: Computer operating 

systems and software (except 

‘‘encryption source code’’) that enable 

activities such as word processing, 

producing spread sheets, producing 

graphics presentations, sending and 

receiving e-mail, Web browsing or 

developing relational databases. When 

applicable, the rule describes these 

items as they are classified on the 

Commerce Control List: 

• Computers classified under ECCN 

4A994.b or designated EAR99 that do 

not exceed an adjusted peak 

performance of 0.02 weighted teraflops; 

• Disk drives and solid state storage 

equipment classified as ECCN 5A992 or 

designated EAR99; 

• Input/output control units (other 

than industrial controllers designed for 

chemical processing) designated EAR99; 

• Graphics accelerators and graphics 

coprocessors designated EAR99; 

• Monitors classified under ECCN 

5A992 or designated EAR99; 

• Printers classified under ECCN 

5A992 or designated EAR99; 

• Modems classified under ECCNs 

5A991.b.2 or 5A992 or designated 

EAR99; 

• Network access controllers and 

communications channel controllers 

classified under ECCN 5A991.b.4 or 

designated EAR99; 

• Keyboards, mice and similar 

devices designated EAR99; 

• Mobile phones, including cellular 

and satellite telephones, personal digital 

assistants, and subscriber information 

module (SIM) cards and similar devices 

classified under ECCNs 5A992 or 5A991 

or designated EAR99; 

• Memory devices classified under 

ECCN 5A992 or designated EAR99; 

• ‘‘Information security’’ equipment, 

‘‘software’’ (except ‘‘encryption source 

code’’) and peripherals classified under 

ECCNs 5A992 or 5D992 or designated 

EAR99; 

• Digital cameras and memory cards 

classified under ECCN 5A992 or 

designated EAR99; 

• Television and radio receivers 

classified under ECCN 5A992 or 

designated EAR99; 

• Recording devices classified under 

ECCN 5A992 or designated EAR99; 

• Batteries, chargers, carrying cases, 

and accessories for the equipment 

described above that are designated 

EAR99; and 

• ‘‘Software’’ (except ‘‘encryption 

source code’’) classified under ECCNs 

4D994, 5D991 or 5D992 or designated 

EAR99 to be used for equipment 

described above. 

This change implements the 

President’s directive to authorize, 

consistent with national security 

concerns, the export or reexport to Cuba 

of donated personal communications 

devices through a license exception. 

Revised Scope of Licensing Policy 

Regarding Telecommunications 

Prior to publication of this rule, 

§ 746.2(b)(2) of the EAR stated that 

export of ‘‘Telecommunications 

commodities may be authorized on a 

case-by-case basis, provided the 

commodities are part of an FCCapproved project and are necessary to 

provide efficient and adequate 

telecommunications between the United 

Sates and Cuba.’’ 

This rule revises the text of 

§ 746.2(b)(2) of the EAR to ensure that 

the licensing policy allows for case-bycase review of exports or reexports of all 

items necessary to provide efficient and 

adequate telecommunications links, 

including satellite radio and satellite 

television, between the United States 

and Cuba consistent with the 

President’s April 13, 2009 directive. The 

scope of items eligible for export or 

reexport now includes any item 

(commodity, technology, or software) 

necessary to provide efficient and 

adequate telecommunications links 

between the United States and Cuba, 

including links established through 

third countries, and including links to 

provide satellite radio or satellite 

television services to Cuba. In making 

this change, BIS notes that the 

establishment of links through third 

countries may be necessary to establish 

efficient and adequate links between the 

United States and Cuba. These changes 

are consistent with the goal of 

enhancing communications to promote 

democracy in Cuba. 

Technical and Conforming Changes 

Although individual gift parcels may 

be eligible for export pursuant to 

License Exception GFT, as set forth in 

§ 740.12(a) of the EAR, consolidated 

shipments of multiple gift parcels are 

not eligible for export under this 

License Exception. BIS has issued a 

number of licenses to parties 

authorizing them to export consolidated 

shipments of gift parcels to Cuba. As 

part of this rule, BIS is amending 

General Order No. 4, found in 

Supplement No. 1 to part 736 of the 

EAR, to authorize such license holders 

to export consolidated shipments of all 

gift parcels that are eligible for License 

Exception GFT as of the effective date 

of this rule. This modification is 

appropriate because some previouslyissued licenses for consolidated 

shipments limit the eligible 

commodities and software, eligible 

recipients, or limits on frequency or 

dollar value based on the restrictions of 

License Exception GFT in place at the 

time the consolidation license was 

issued. The amended General Order 

does not, however, increase the total 

value of exports permitted under, or 

extend the expiration date of, any 

license. Amending the General Order to 

modify existing licenses in such a 

manner will facilitate implementation of 

the policy underlying this rule by 


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45988 Federal Register / Vol. 74, No. 172 / Tuesday, September 8, 2009 / Rules and Regulations 

allowing consolidators to include all gift 

parcels consistent with the provisions of 

License Exception GFT in their 

consolidated shipments immediately 

rather than having to wait until they 

obtain a new license. Consolidators will 

still need to apply for new licenses 

when their existing licenses have been 

completely used or have expired. 

Section 740.2(a)(6) of the EAR 

precludes use of any License Exception 

to export or reexport to Cuba unless the 

License Exception is listed in the 

License Exception paragraph pertaining 

to Cuba in part 746. This rule revises 

§ 746.2(a)(1) to list the new ‘‘Consumer 

Communications Devices’’ License 

Exception that this rule creates. 

Change to Prohibitions Applying to Gift 

Parcels Generally 

Although not related to the 

President’s April 13, 2009 directive, this 

rule also makes ineligible for inclusion 

in gift parcels to any destination items 

listed on the Commerce Control List 

with ‘‘encryption items’’ (EI) as a reason 

for control. BIS is making this change 

because of the sensitivity of such items. 

Items controlled for EI reasons employ 

sophisticated encryption techniques and 

have not been designated as ‘‘mass 

market’’ items by the United States 

Government. Such items are not eligible 

for export or reexport under License 

Exception GFT because they are not 

normally exchanged between 

individuals as gifts. However, because 

of the potential use of items controlled 

for EI reasons by persons abroad to harm 

U.S. national security, foreign policy 

and law enforcement interests, BIS is 

adding EI as a reason for control that 

explicitly precludes use of License 

Exception GFT to any destination. The 

other reasons for control that trigger this 

preclusion are national security, nuclear 

nonproliferation, chemical and 

biological weapons and missile 

technology. 

Rulemaking Requirements 

1. This rule has been determined to be 

a significant rule under Executive Order 

12866. 

2. Notwithstanding any other 

provision of law, no person is required 

to respond to, nor shall any person be 

subject to a penalty for failure to comply 

with a collection of information, subject 

to the requirements of the Paperwork 

Reduction Act, unless that collection of 

information displays a currently valid 

Office of Management and Budget 

Control Number. This rule involves a 

collection of information that has been 

approved by OMB under control 

number 0694–0088, which carries a 

burden hour estimate of 58 minutes to 

prepare and submit form BIS–748P. 

Miscellaneous and recordkeeping 

activities account for 12 minutes per 

submission. BIS believes that this rule 

will make no material change to the 

number of submissions or to 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 under 5 U.S.C. 553, 

or by any other law, the 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. 

15 CFR Part 746 

Exports, Reporting and recordkeeping 

requirements. 

■ Accordingly, the Export 

Administration Regulations (15 CFR 

chapter VII, subchapter C) are amended 

as follows: 

PART 736—[AMENDED] 

■ 1. The authority citation for part 736 

is revised 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 13, 2009, 74 FR 41325 (August 14, 

2009); Notice of November 10, 2008, 73 FR 

67097 (November 12, 2008). 

■ 2. General Order Number 4 of 

Supplement No. 1 to Part 736 is 

amended by revising the introductory 

text and by revising paragraph (b) to 

read as follows: 

Supplement No. 1 to Part 736—General 

Orders 

* * * * * 

General Order No. 4 of June 13, 2008, as 

amended on September 3, 2009, amending 

existing licenses for exports of consolidated 

gift parcels to Cuba due to changes in License 

Exception GFT. 

* * * * * 

(b) Notwithstanding any statements to the 

contrary on the license itself, licenses 

authorizing the export to Cuba of 

consolidated gift parcels described in 

paragraph (a) of this order that are valid on 

September 3, 2009 authorize the export of 

consolidated shipments to Cuba of gift 

parcels that comply with the requirements of 

License Exception GFT found in § 740.12(a) 

of the EAR as of September 3, 2009. 

* * * * * 

PART 740—[AMENDED] 

■ 3. The authority citation for part 740 

is revised 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 13, 2009, 74 

FR 41325 (August 14, 2009). 

■ 4. Section 740.12 is amended by 

revising paragraphs (a)(2)(i), (a)(2)(iii), 

(a)(2)(iv) and (a)(2)(v) to read as follows: 

§ 740.12 Gift parcels and humanitarian 

donations. 

(a) * * * 

(2) * * * 

(i) Item limitations. 

(A) Prohibited items. 

(1) For Cuba no items listed on the 

Commerce Control List other than items 

listed in § 740.19(b) of the EAR may be 

included in a gift parcel. 

(2) For all destinations, no items 

controlled for chemical and biological 

weapons (CB), missile technology (MT), 

national security (NS), nuclear 

proliferation (NP) or encryption items 

(EI) reasons on the Commerce Control 

List (Supplement no. 1 to part 774 of the 

EAR) may be included in a gift parcel. 

(3) Items prohibited for destinations 

in Country Group D:1 or E:2. For 

destinations in Country Group D:1 or 

E:2, military wearing apparel may not be 

included in a gift parcel regardless of 

whether all distinctive U.S. military 

insignia, buttons, and other markings 

are removed. 

(4) Gold bullion, gold taels, and gold 

bars are prohibited as are items 

intended for resale or reexport. 

(B) Eligible items. For all destinations, 

eligible items are food (including 

vitamins); medicines, medical supplies 

and devices (including hospital supplies 

and equipment and equipment for the 

handicapped); receive-only radio 


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Federal Register / Vol. 74, No. 172 / Tuesday, September 8, 2009 / Rules and Regulations 45989 

equipment for reception of commercial/ 

civil AM/FM and short wave publicly 

available frequency bands, and batteries 

for such equipment; clothing; personal 

hygiene items; seeds; veterinary 

medicines and supplies; fishing 

equipment and supplies; soap-making 

equipment; as well as all other items of 

a type normally sent as gifts between 

individuals (including items listed in 

§ 740.19(b) of the EAR) except for those 

items prohibited in paragraph 

(a)(2)(i)(A) of this section. Items in gift 

parcels must be in quantities normally 

given as gifts between individuals. 

Example to paragraph (a)(2)(i)(B) of 

this section. A watch or piece of jewelry 

is normally sent as a gift. However, 

multiple watches, either in one package 

or in subsequent shipments, would not 

qualify for such gift parcels because the 

quantity would exceed that normally 

given between individuals. Similarly, a 

sewing machine or bicycle within the 

value limit of this License Exception 

may be an appropriate gift. However, 

subsequent shipments of the same item 

to the same donee would not be a gift 

normally given between individuals. 

* * * * * 

(iii) Frequency. 

(A) Except for gift parcels of food to 

Cuba, not more than one gift parcel may 

be sent from the same donor to the same 

donee in any one calendar month. 

(B) There is no frequency limit on gift 

parcels of food to Cuba. 

(C) Parties seeking authorization to 

exceed the frequency limit due to 

compelling humanitarian concerns (e.g., 

for certain gifts of medicine) should 

submit a license application in 

accordance with §§ 748.1, 748.4 and 

748.6 of the EAR to BIS with complete 

justification. 

(iv) Value. The combined total 

domestic retail value of all commodities 

and software in a single gift parcel may 

not exceed $800. This limit does not 

apply to food sent in a gift parcel to 

Cuba. 

(v) Ineligible recipients. 

(A) No gift parcel may be sent to any 

of the following officials of the Cuban 

Government: ministers and viceministers; members of the Council of 

State; members of the Council of 

Ministers; members and employees of 

the National Assembly of People’s 

Power; members of any provincial 

assembly; local sector chiefs of the 

Committees for the Defense of the 

Revolution; Director Generals and subDirector Generals and higher of all 

Cuban ministries and state agencies; 

employees of the Ministry of the Interior 

(MININT); employees of the Ministry of 

Defense (MINFAR); secretaries and first 

secretaries of the Confederation of Labor 

of Cuba (CTC) and its component 

unions; chief editors, editors and deputy 

editors of Cuban state-run media 

organizations and programs, including 

newspapers, television, and radio; or 

members and employees of the Supreme 

Court (Tribuno Supremo Nacional). 

(B) No gift parcel may be sent to any 

of the following officials or members of 

the Cuban Communist Party: members 

of the Politburo; the Central Committee; 

Department Heads of the Central 

Committee; employees of the Central 

Committee; and the secretaries and first 

secretaries of provincial Party central 

committees. 

(C) No gift parcel may be sent to 

organizations administered or 

controlled by the Cuban Government or 

the Cuban Communist Party. 

* * * * * 

§ 740.14 [Amended] 

■ 4. Section 740.14 is amended by: 

■ a. removing ‘‘(h)’’ from the last 

sentence of paragraph (b)(4) 

introductory text and adding ‘‘(g)’’ in its 

place: 

■ b. removing paragraph (g); and 

■ c. redesignating paragraph (h) as 

paragraph (g). 

■ 5. A new § 740.19 is added to read as 

follows: 

§ 740.19 Consumer Communications 

Devices (CCD). 

(a) Authorization. This License 

Exception authorizes the export or 

reexport of commodities and software 

described in paragraph (b) to Cuba 

subject to the conditions in paragraphs 

(c) and (d) of this section. This section 

does not authorize U.S.-owned or 

-controlled entities in third countries to 

engage in reexports of foreign produced 

commodities to Cuba for which no 

license would be issued by the Treasury 

Department pursuant to 31 CFR 

515.559. Cuba is the only eligible 

destination under this License 

Exception. 

(b) Eligible Commodities and 

Software. Commodities and software 

eligible for export or reexport under this 

section are: 

(1) Computers designated EAR99 or 

classified under Export Control 

Classification Number (ECCN) 4A994.b 

that do not exceed an adjusted peak 

performance of 0.02 weighted teraflops; 

(2) Disk drives and solid state storage 

equipment classified under ECCN 

5A992 or designated EAR99; 

(3) Input/output control units (other 

than industrial controllers designed for 

chemical processing) designated EAR99; 

(4) Graphics accelerators and graphics 

coprocessors designated EAR99; 

(5) Monitors classified under ECCN 

5A992 or designated EAR99; 

(6) Printers classified under ECCN 

5A992 or designated EAR99; 

(7) Modems classified under ECCNs 

5A991.b.2, or 5A992 or designated 

EAR99; 

(8) Network access controllers and 

communications channel controllers 

classified under ECCN 5A991.b.4 or 

designated EAR99; 

(9) Keyboards, mice and similar 

devices designated EAR99; 

(10) Mobile phones, including cellular 

and satellite telephones, personal digital 

assistants, and subscriber information 

module (SIM) cards and similar devices 

classified under ECCNs 5A992 or 5A991 

or designated EAR99; 

(11) Memory devices classified under 

ECCN 5A992 or designated EAR99; 

(12) ‘‘Information security’’ 

equipment, ‘‘software’’ (except 

‘‘encryption source code’’) and 

peripherals classified under ECCNs 

5A992 or 5D992 or designated EAR99; 

(13) Digital cameras and memory 

cards classified under ECCN 5A992 or 

designated EAR99; 

(14) Television and radio receivers 

classified under ECCN 5A992 or 

designated EAR99; 

(15) Recording devices classified 

under ECCN 5A992 or designated 

EAR99; 

(16) Batteries, chargers, carrying cases 

and accessories for the equipment 

described in this paragraph that are 

designated EAR99; and 

(17) ‘‘Software’’ (except ‘‘encryption 

source code’’) classified under ECCNs 

4D994, 5D991 or 5D992 or designated 

EAR99 to be used for equipment 

described in this paragraph (b). 

(c) Donation Requirement. This 

License Exception authorizes the export 

or reexport of eligible commodities and 

software that will be donated by the 

exporter or reexporter to an eligible enduser or to eligible end-users free of 

charge. The payment by an end-user of 

any handling charges arising within the 

importing country or any charges levied 

by the government of the importing 

country shall not be considered a charge 

for purposes of this paragraph. 

(d) Eligible End-users—(1) 

Organizations. This License Exception 

may be used to export or reexport 

eligible commodities and software to 

and for the use of independent nongovernmental organizations. The Cuban 

Government or the Cuban Communist 

Party and organizations they administer 

or control are not eligible end-users. 

(2) Individuals. This License 

Exception may be used to export eligible 

commodities and software to and for the 

use of individuals other than the 


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45990 Federal Register / Vol. 74, No. 172 / Tuesday, September 8, 2009 / Rules and Regulations 

following officials of the Cuban 

Government and Cuban Communist 

Party: 

(i) Ineligible Cuban Government 

Officials. Ministers and vice-ministers; 

members of the Council of State; 

members of the Council of Ministers; 

members and employees of the National 

Assembly of People’s Power; members 

of any provincial assembly; local sector 

chiefs of the Committees for the Defense 

of the Revolution; Director Generals and 

sub-Director Generals and higher of all 

Cuban ministries and state agencies; 

employees of the Ministry of the Interior 

(MININT); employees of the Ministry of 

Defense (MINFAR); secretaries and first 

secretaries of the Confederation of Labor 

of Cuba (CTC) and its component 

unions; chief editors, editors and deputy 

editors of Cuban state-run media 

organizations and programs, including 

newspapers, television, and radio; or 

members and employees of the Supreme 

Court (Tribuno Supremo Nacional). 

(ii) Ineligible Cuban Communist Party 

Officials. Members of the Politburo; the 

Central Committee; Department Heads 

of the Central Committee; employees of 

the Central Committee; and the 

secretaries and first secretaries of 

provincial Party central committees. 

PART 746—[AMENDED] 

■ 6. The authority citation for part 746 

is revised to read as follows: 

Authority: 50 U.S.C. app. 2401 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. 

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, 3 CFR, 2001 

Comp., p. 783; Presidential Determination 

2003–23 of May 7, 2003, 68 FR 26459, May 

16, 2003; Presidential Determination 2007–7 

of December 7, 2006, 72 FR 1899 (January 16, 

2007); Notice of August 13, 2009, 74 FR 

41325 (August 14, 2009). 

■ 7. Section 746.2, is amended by 

adding a paragraph (a)(1)(xiii) and by 

revising paragraph (b)(2) to read as 

follows: 

§ 746.2 Cuba. 

(a) * * * 

(1) * * * 

(xiii) Commodities and software 

authorized under License Exception 

Consumer Communications Devices 

(CCD) (see § 740.19 of the EAR). 

* * * * * 

(b) * * * 

(2) Items may be authorized for export 

or reexport to Cuba on a case-by-case 

basis, provided the items are necessary 

to provide efficient and adequate 

telecommunications links between the 

United States and Cuba, including links 

established through third countries, and 

including the provision of satellite radio 

or satellite television services to Cuba. 

* * * * * 

Dated: September 1, 2009. 

Matthew S. Borman, 

Acting Assistant Secretary for Export 

Administration. 

[FR Doc. E9–21402 Filed 9–3–09; 4:15 pm] 

BILLING CODE 3510–33–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Part 744 

[Docket No. 090126062–91139–01] 

RIN 0694–AE54 

Revisions to Certain End-User 

Controls Under the Export 

Administration Regulations; 

Clarification Regarding License 

Requirements for Transfers (incountry) to Persons Listed on the 

Entity List 

AGENCY: Bureau of Industry and 

Security, Commerce. 

ACTION: Final rule. 

SUMMARY: The Bureau of Industry and 

Security (BIS) is amending the Export 

Administration Regulations (EAR) to 

make revisions to three sections that are 

used by the United States Government 

as the basis for placing persons onto the 

Entity List. These three sections 

specified license requirements for 

exports and reexports to persons listed 

on the Entity List, however; the sections 

were silent regarding whether or not the 

scope of the licensing requirements 

included transfers (in-country). This 

rule adds transfers (in-country) to the 

scope of the license requirements under 

each of the three sections. As a result of 

adding transfers (in-country) to these 

three end-user controls, all of the enduse and end-user controls that are used 

as a regulatory basis for placing persons 

on the Entity List now specify that the 

scope of the license requirements 

includes exports, reexports, and 

transfers (in-country). 

The Entity List provides notice to the 

public that certain exports, reexports, 

and transfers (in-country) to parties 

identified on the Entity List require a 

license from the Bureau of Industry and 

Security (BIS) and that availability of 

License Exceptions in such transactions 

is limited. 

DATES: Effective Date: This rule is 

effective September 8, 2009. Although 

there is no formal comment period, 

public comments on this regulation are 

welcome on a continuing basis. 

ADDRESSES: You may submit comments, 

identified by RIN 0694–AE54, by any of 

the following methods: 

E-mail: publiccomments@bis.doc.gov. 

Include ‘‘RIN 0694–AE54’’ in the subject 

line of the message. 

Fax: (202) 482–3355. Please alert the 

Regulatory Policy Division, by calling 

(202) 482–2440, if you are faxing 

comments. 

Mail or Hand Delivery/Courier: 

Timothy Mooney, U.S. Department of 

Commerce, Bureau of Industry and 

Security, Regulatory Policy Division, 

14th St. & Pennsylvania Avenue, NW., 

Room 2705, Washington, DC 20230, 

Attn: RIN 0694–AE54. 

Send comments regarding the 

collection of information associated 

with this rule, including suggestions for 

reducing the burden, to Jasmeet K. 

Seehra, Office of Management and 

Budget (OMB), by e-mail to 

Jasmeet_K._Seehra@omb.eop.gov or by 

fax to (202) 395–7285; and to the 

Regulatory Policy Division, Bureau of 

Industry and Security, Department of 

Commerce, 14th St. & Pennsylvania 

Avenue, NW., Room 2705, Washington, 

DC 20230. Comments on this collection 

of information should be submitted 

separately from comments on the final 

rule (i.e., RIN 0694–AE54)—all 

comments on the latter should be 

submitted by one of the three methods 

outlined above. 

FOR FURTHER INFORMATION CONTACT: 

Elizabeth Scott Sangine, End-User 

Review Committee, Office of the 

Assistant Secretary, Export 

Administration, Bureau of Industry and 

Security, Department of Commerce, 

Phone: (202) 482–3343, Fax: (202) 482– 

3911, E-mail: bscott@bis.doc.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

The Entity List provides notice to the 

public that certain exports, reexports, 

and transfers (in-country) to parties 

identified on the Entity List require a 

license from the Bureau of Industry and 

Security (BIS) and that availability of 

license exceptions in such transactions 

is limited. Persons are placed on the 

Entity List on the basis of certain 

sections of part 744 (Control Policy: 

End-User and End-Use Based) of the 

EAR. 

The End-User Review Committee 

(ERC), composed of representatives of 

the Departments of Commerce (Chair), 

State, Defense, Energy and, where 

appropriate, the Treasury, makes all 

decisions regarding additions to, 

removals from or changes to the Entity 


CPrice-Sewell on DSKGBLS3C1PROD with RULES