Document ID: BIS-2009-0013-0001
Agency: bis
Document Type: Rule
Title: Cuba: Revisions to Gift Parcel and Baggage Restrictions, Creation of License Exception for Donated Consumer Communications Devices and Expansion of Licensing Policy Regarding Telecommunications
Posted Date: 2009-09-08T04:00Z

[Federal Register: September 8, 2009 (Volume 74, Number 172)]
[Rules and Regulations]               
[Page 45985-45990]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08se09-7]                         

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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.

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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 democracy-building 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 e-mail 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

[[Page 45986]]

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) 
(Sec.  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

[[Page 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, Sec.  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 FCC-approved project and are necessary to provide efficient and 
adequate telecommunications between the United Sates and Cuba.''
    This rule revises the text of Sec.  746.2(b)(2) of the EAR to 
ensure that the licensing policy allows for case-by-case 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 Sec.  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 previously-issued 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

[[Page 45988]]

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 Sec.  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.

0
Accordingly, the Export Administration Regulations (15 CFR chapter VII, 
subchapter C) are amended as follows:

PART 736--[AMENDED]

0
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).

0
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 Sec.  740.12(a) of 
the EAR as of September 3, 2009.
* * * * *

PART 740--[AMENDED]

0
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).

0
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:

Sec.  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 Sec.  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

[[Page 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 Sec.  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 
Sec. Sec.  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 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).
    (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.
* * * * *

Sec.  740.14 [Amended]  

0
4. Section 740.14 is amended by:
0
a. removing ``(h)'' from the last sentence of paragraph (b)(4) 
introductory text and adding ``(g)'' in its place:
0
b. removing paragraph (g); and
0
c. redesignating paragraph (h) as paragraph (g).
0
5. A new Sec.  740.19 is added to read as follows:

Sec.  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 end-user 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 non-governmental 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

[[Page 45990]]

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]

0
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).

0
7. Section 746.2, is amended by adding a paragraph (a)(1)(xiii) and by 
revising paragraph (b)(2) to read as follows:

Sec.  746.2  Cuba.

    (a) * * *
    (1) * * *
    (xiii) Commodities and software authorized under License Exception 
Consumer Communications Devices (CCD) (see Sec.  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