[Code of Federal Regulations]
[Title 31, Volume 2, Parts 200 to end]
[Revised as of July 1, 1997]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR515]
[Page 465-513]
TITLE 31--MONEY AND FINANCE: TREASURY
CHAPTER V--OFFICE OF FOREIGN ASSETS CONTROL, DEPARTMENT OF THE TREASURY
PART 515--CUBAN ASSETS CONTROL REGULATIONS
Subpart A--Relation of This Part to Other Laws and Regulations
Sec.
515.101 Relation of this part to other laws and regulations.
Subpart B--Prohibitions
515.201 Transactions involving designated foreign countries or their
nationals; effective date.
515.202 Transactions with respect to securities registered or inscribed
in the name of a designated national.
515.203 Effect of transfers violating the provisions of this part.
515.204 Importation of and dealings in certain merchandise.
515.205 Holding of certain types of blocked property in interest-
bearing accounts.
[[Page 466]]
515.206 Exemption of information and informational materials.
515.207 Entry of vessels engaged in trade with Cuba.
515.208 Restrictions on loans, credits and other financing.
Subpart C--General Definitions
515.301 Foreign country.
515.302 National.
515.303 Nationals of more than one foreign country.
515.305 Designated national.
515.306 Specially designated national.
515.307 Unblocked national.
515.308 Person.
515.309 Transactions.
515.310 Transfer.
515.311 Property; property interests.
515.312 Interest.
515.313 Property subject to the jurisdiction of the United States.
515.314 Banking institution.
515.316 License.
515.317 General license.
515.318 Specific license.
515.319 Blocked account.
515.320 Domestic bank.
515.321 United States; continental United States.
515.322 Authorized trade territory; member of the authorized trade
territory.
515.323 Occupied area.
515.325 National securities exchange.
515.326 Custody of safe deposit boxes.
515.327 Blocked estate of a decedent.
515.329 Person subject to the jurisdiction of the United States.
515.330 Person within the United States.
515.331 Merchandise.
515.332 Information and informational materials.
515.333 Depository institution.
515.334 United States national.
515.335 Permanent resident alien.
515.336 Confiscated.
Subpart D--Interpretations
515.401 Reference to amended sections.
515.402 Effect of amendment of sections of this part or of other
orders, etc.
515.403 Termination and acquisition of the interest of a designated
national.
515.404 Transactions between principal and agent.
515.405 Exportation of securities, currency, checks, drafts and
promissory notes.
515.406 Drafts under irrevocable letters of credit; documentary drafts.
515.407 Administration of blocked estates of decedents.
515.408 Access to certain safe deposit boxes prohibited.
515.409 Certain payments to a designated foreign country and nationals
through third countries.
515.410 Dealing abroad in Cuban origin commodities.
515.411 Exclusion from authorization in Sec. 515.518.
515.413 [Reserved]
515.415 Travel to Cuba; transportation of certain Cuban nationals.
515.416 Professional research and similar activities.
515.417 Free-lance journalists.
515.418 Transactions related to telecommunications.
515.419 Travel related to educational activities.
Subpart E--Licenses, Authorizations, and Statements of Licensing Policy
515.502 Effect of subsequent license or authorization.
515.503 Exclusion from licenses and authorizations.
515.504 Certain judicial proceedings with respect to property of
designated nationals.
515.505 Certain persons unblocked.
515.506--515.507 [Reserved]
515.508 Payments to blocked accounts in domestic banks.
515.509 Entries in certain accounts for normal service charges.
515.510 Payments to the United States, States and political
subdivisions.
515.511 Transactions by certain business enterprises.
515.513 Purchase and sale of certain securities.
515.514 Payment of dividends and interest on and redemption and
collection of securities.
515.515 Transfers of securities to blocked accounts in domestic banks.
515.516 Voting and soliciting of proxies on securities.
515.517 Access to safe deposit boxes under certain conditions.
515.518 Payments for living, traveling, and similar personal expenses
in the United States.
515.519 Limited payments from accounts of United States citizens
abroad.
515.520 Payments from accounts of United States citizens in employ of
United States in foreign countries and certain other persons.
515.521 Certain remittances for necessary living expenses.
515.522 [Reserved]
515.523 Transactions incident to the administration of decedents'
estates.
515.524 Payment from, and transactions in the administration of certain
trusts and estates.
515.525 Certain transfers by operation of law.
515.526 Transactions involving blocked life insurance policies.
[[Page 467]]
515.527 Certain transactions with respect to United States intellectual
property.
515.528 Certain transactions with respect to blocked foreign
intellectual property.
515.529 Powers of attorney.
515.530 Exportation of powers of attorney or instructions relating to
certain types of transactions.
515.531 Payment of certain checks and drafts.
515.532 Completion of certain securities transactions.
515.533 Transactions incident to exportations to designated countries.
515.535 Exchange of certain securities.
515.536 Certain transactions with respect to merchandise affected by
Sec. 515.204.
515.540 Passengers' baggage.
515.542 Telecommunications, information, and informational materials.
515.543 Proof of origin.
515.544 Gifts of Cuban origin goods.
515.545 Transactions related to information and informational
materials.
515.546 [Reserved]
515.547 Research samples.
515.548 Services rendered by Cuba to United States aircraft.
515.549 Bank accounts and other property of non-Cuban citizens who were
in Cuba on or after July 8, 1963.
515.550 [Reserved]
515.551 Joint bank accounts.
515.552 Proceeds of insurance policies.
515.553 Bank accounts of official representatives in Cuba of foreign
governments.
515.554 Transfers of abandoned property under State laws.
515.555 Assets of Cuban firms wholly or substantially owned by U.S.
citizens.
515.556 Accounts of Cuban citizens outside Cuba.
515.557 Accounts of Cuban partnerships.
515.558 Accounts of Cuban sole proprietorships.
515.559 Transactions by U.S.-owned or controlled foreign firms with
Cuba.
515.560 Certain transactions incident to travel to and within Cuba.
515.561 [Reserved]
515.562 Bunkering of Cuban vessels and fueling of Cuban aircraft by
American-owned or controlled foreign firms.
515.563 Family remittances to nationals of Cuba.
515.564 Certain transactions incident to travel to, from and within the
United States by certain Cuban nationals.
515.565 Transactions in connection with public exhibitions or
performances.
515.566 Authorization of transactions incident to the provision of
travel service, carrier service, and family remittance
forwarding service.
515.567 U.S. assets of certain Cuban corporations.
515.568 U.S. assets of certain Cuban decedents.
515.569 Currency carried by travelers to Cuba.
515.571 Certain vessel transactions authorized.
515.572 Transactions by news organizations.
515.573 Transactions related to educational exchanges.
515.574 Support for the Cuban people.
Subpart F--Reports
515.601 Records.
515.602 Reports to be furnished on demand.
515.603 Registration of persons holding blocked property subject to
Sec. 515.201 or Sec. 515.202.
515.611 Reports on Form TFR-611.
Subpart G--Penalties
515.701 Penalties.
515.702 Prepenalty notice.
515.703 Presentation responding to prepenalty notice.
515.704 Hearing.
515.705 Penalty notice.
515.706 Judicial review.
515.707 Referral to United States Department of Justice; administrative
collection measures.
Subpart H--Procedures
515.801 Licensing.
515.802 Unblocking.
515.803 Decision.
515.804 Records and reporting.
515.805 Amendment, modification, or revocation.
515.806 Rulemaking.
515.807 Delegation by the Secretary of the Treasury.
515.808 Customs procedures; merchandise specified in Sec. 515.204.
515.809 Rules governing availability of information.
Subpart I--Miscellaneous Provisions
515.901 Paperwork Reduction Act notice.
Authority: 50 U.S.C. App. 1-44; 22 U.S.C. 6001-6010; 22 U.S.C.
2370(a); Pub. L. 104-132, 110 Stat. 1214, 1254 (18 U.S.C. 2332d); Pub.
L. 101-410, 104 Stat. 890 (28 U.S.C. 2461 note); Proc. 3447, 27 FR 1085,
3 CFR 1959-1963 Comp., p. 157; E.O. 9193, 7 FR 5205, 3 CFR, 1938-1943
Comp., p. 1147; E.O. 9989, 13 FR 4891, 3 CFR, 1943-48 Comp., p. 748;
E.O. 12854, 58 FR 36587, 3 CFR 1993 Comp., p. 614.
Source: 28 FR 6974, July 9, 1963, unless otherwise noted.
[[Page 468]]
Subpart A--Relation of This Part to Other Laws and Regulations
Sec. 515.101 Relation of this part to other laws and regulations.
(a) This part is independent of parts 500, 505, 520, 530, 535, and
540 of this chapter. No license or authorization contained in or issued
pursuant to one of those parts, or any other provision of law,
authorizes any transaction prohibited by this part.
(b) No license or authorization contained in or issued pursuant to
this part shall be deemed to authorize any transaction prohibited by any
law other than the Trading With the Enemy Act, 50 U.S.C. App. 5(b), as
amended, the Foreign Assistance Act of 1961, 22 U.S.C. 2370, or any
proclamation, order, regulation or license issued pursuant thereto.
[50 FR 27437, July 3, 1985]
Subpart B--Prohibitions
Sec. 515.201 Transactions involving designated foreign countries or
their nationals; effective date.
(a) All of the following transactions are prohibited, except as
specifically authorized by the Secretary of the Treasury (or any person,
agency, or instrumentality designated by him) by means of regulations,
rulings, instructions, licenses, or otherwise, if either such
transactions are by, or on behalf of, or pursuant to the direction of a
foreign country designated under this part, or any national thereof, or
such transactions involve property in which a foreign country designated
under this part, or any national thereof, has at any time on or since
the effective date of this section had any interest of any nature
whatsoever, direct or indirect:
(1) All transfers of credit and all payments between, by, through,
or to any banking institution or banking institutions wheresoever
located, with respect to any property subject to the jurisdiction of the
United States or by any person (including a banking institution) subject
to the jurisdiction of the United States;
(2) All transactions in foreign exchange by any person within the
United States; and
(3) The exportation or withdrawal from the United States of gold or
silver coin or bullion, currency or securities, or the earmarking of any
such property, by any person within the United States.
(b) All of the following transactions are prohibited, except as
specifically authorized by the Secretary of the Treasury (or any person,
agency, or instrumentality designated by him) by means of regulations,
rulings, instructions, licenses, or otherwise, if such transactions
involve property in which any foreign country designated under this
part, or any national thereof, has at any time on or since the effective
date of this section had any interest of any nature whatsoever, direct
or indirect:
(1) All dealings in, including, without limitation, transfers,
withdrawals, or exportations of, any property or evidences of
indebtedness or evidences of ownership of property by any person subject
to the jurisdiction of the United States; and
(2) All transfers outside the United States with regard to any
property or property interest subject to the jurisdiction of the United
States.
(c) Any transaction for the purpose or which has the effect of
evading or avoiding any of the prohibitions set forth in paragraph (a)
or (b) of this section is hereby prohibited.
(d) For the purposes of this part, the term foreign country
designated under this part and the term designated foreign country mean
Cuba and the term effective date and the term effective date of this
section mean with respect to Cuba, or any national thereof, 12:01 a.m.,
e.s.t., July 8, 1963.
Sec. 515.202 Transactions with respect to securities registered or
inscribed in the name of a designated national.
Unless authorized by a license expressly referring to this section,
the acquisition, transfer (including the transfer on the books of any
issuer or agent thereof), disposition, transportation, importation,
exportation, or withdrawal of, or the endorsement or guaranty of
signatures on or otherwise dealing in any security (or evidence thereof)
registered or inscribed in the
[[Page 469]]
name of any designated national is prohibited irrespective of the fact
that at any time (either prior to, on, or subsequent to the ``effective
date'') the registered or inscribed owner thereof may have, or appears
to have, assigned, transferred or otherwise disposed of any such
security.
Sec. 515.203 Effect of transfers violating the provisions of this part.
(a) Any transfer after the ``effective date'' which is in violation
of any provision of this part or of any regulation, ruling, instruction,
license, or other direction or authorization thereunder and involves any
property in which a designated national has or has had an interest since
such ``effective date'' is null and void and shall not be the basis for
the assertion or recognition of any interest in or right, remedy, power
or privilege with respect to such property.
(b) No transfer before the ``effective date'' shall be the basis for
the assertion or recognition of any right, remedy, power, or privilege
with respect to, or interest in, any property in which a designated
national has or has had an interest since the ``effective date'' unless
the person with whom such property is held or maintained had written
notice of the transfer or by any written evidence had recognized such
transfer prior to such ``effective date.''
(c) Unless otherwise provided, an appropriate license or other
authorization issued by or pursuant to the direction or authorization of
the Secretary of the Treasury before, during or after a transfer shall
validate such transfer or render it enforceable to the same extent as it
would be valid or enforceable but for the provisions of section 5(b) of
the Trading With the Enemy Act, as amended, and this part and any
ruling, order, regulation, direction or instruction issued hereunder.
(d) Transfers of property which otherwise would be null and void, or
unenforceable by virtue of the provisions of this section shall not be
deemed to be null and void, or unenforceable pursuant to such
provisions, as to any person with whom such property was held or
maintained (and as to such person only) in cases in which such person is
able to establish each of the following:
(1) Such transfer did not represent a willful violation of the
provisions of this part by the person with whom such property was held
or maintained;
(2) The person with whom such property was held or maintained did
not have reasonable cause to know or suspect, in view of all the facts
and circumstances known or available to such person, that such transfer
required a license or authorization by or pursuant to the provisions of
this part and was not so licensed or authorized or if a license or
authorization did purport to cover the transfer, that such license or
authorization had been obtained by misrepresentation or the withholding
of material facts or was otherwise fraudulently obtained; and
(3) Promptly upon discovery that:
(i) Such transfer was in violation of the provisions of this part or
any regulation, ruling, instruction, license or other direction or
authorization thereunder, or
(ii) Such transfer was not licensed or authorized by the Secretary
of the Treasury, or
(iii) If a license did purport to cover the transfer, such license
had been obtained by misrepresentation or the withholding of material
facts or was otherwise fraudulently obtained;
the person with whom such property was held or maintained filed with the
Treasury Department, Washington, D.C., a report in triplicate setting
forth in full the circumstances relating to such transfer. The filing of
a report in accordance with the provisions of this paragraph shall not
be deemed to be compliance or evidence of compliance with paragraphs (d)
(1) and (2) of this section.
(e) Unless licensed or authorized by Sec. 515.504 or otherwise
licensed or authorized pursuant to this chapter any attachment,
judgment, decree, lien, execution, garnishment, or other judicial
process is null and void with respect to any property in which on or
since the ``effective date'' there existed the interest of a designated
foreign country or national thereof.
(f) For the purpose of this section the term property includes gold,
silver, bullion, currency, coin, credit, securities (as that term is
defined in section 2(1)
[[Page 470]]
of the Securities Act of 1933, as amended), bills of exchange, notes,
drafts, acceptances, checks, letters of credit, book credits, debts,
claims, contracts, negotiable documents of title, mortgages, liens,
annuities, insurance policies, options and futures in commodities, and
evidences of any of the foregoing. The term property shall not, except
to the extent indicated, be deemed to include chattels or real property.
[28 FR 6974, July 9, 1963, as amended at 28 FR 7941, Aug. 3, 1963]
Sec. 515.204 Importation of and dealings in certain merchandise.
(a) Except as specifically authorized by the Secretary of the
Treasury (or any person, agency, or instrumentality designated by him)
by means of regulations, rulings, instructions, licenses, or otherwise,
no person subject to the jurisdiction of the United States may purchase,
transport, import, or otherwise deal in or engage in any transaction
with respect to any merchandise outside the United States if such
merchandise:
(1) Is of Cuban origin; or
(2) Is or has been located in or transported from or through Cuba;
or
(3) Is made or derived in whole or in part of any article which is
the growth, produce or manufacture of Cuba.
(b) [Reserved]
Sec. 515.205 Holding of certain types of blocked property in interest-
bearing accounts.
(a) Except as provided by paragraphs (d), (e) and (f) of this
section, or as authorized by the Secretary of the Treasury or his
delegate by specific license, any person holding any property included
in paragraph (h) of this section is prohibited from holding,
withholding, using, transferring, engaging in any transactions
involving, or exercising any right, power, or privilege with respect to
any such property, unless it is held in an interest-bearing account in a
domestic bank.
(b) Any person presently holding property subject to the provisions
of paragraph (a) of this section which, as of the effective date of this
section, is not being held in accordance with the provisions of that
paragraph shall transfer such property to or hold such property or cause
such property to be held in an interest-bearing account in any domestic
bank within 30 days of the effective date of this section.
(c) Any person holding any checks or drafts subject to the
provisions of Sec. 515.201 is authorized and directed, wherever possible
consistent with state law (except as otherwise specifically provided in
paragraph (c)(3) of this section), to negotiate or present for
collection or payment such instruments and credit the proceeds to
interest-bearing accounts. Any transaction by any person incident to the
negotiation, processing. presentment, collection or payment of such
instruments and deposit of the proceeds into an interest-bearing account
is hereby authorized: Provided that:
(1) The transaction does not represent, directly or indirectly, a
transfer of the interest of a designated national to any other country
or person;
(2) The proceeds are held in a blocked account indicating the
designated national who is the payee or owner of the instrument; and,
(3) In the case of a blocked check or draft which has been purchased
by the maker/drawer from the drawee bank (e.g., cashier's check, money
order, or traveler's check) or which is drawn against a presently
existing account, such bank, on presentment of the instrument in
accordance with the provisions of this section, shall either:
(i) Pay the instrument (subject to paragraphs (c)(1) and (2) of this
section) or
(ii) Credit a blocked account on its books with the amount payable
on the instrument.
In either event, the blocked account shall be identified as resulting
from the proceeds of a blocked check or draft, and the identification
shall include a reference to the names of both the maker and payee of
the instrument.
(d) Property subject to the provisions of paragraph (a) or (b) of
this section, held by a person claiming a set-off against such property,
is exempt from the provisions of paragraphs (a), (b) and (c) of this
section to the extent of the set-off: Provided however, That interest
shall be due from 30 days after the effective date of this section if it
[[Page 471]]
should ultimately be determined that the claim to a set-off is without
merit.
(e) Property subject to the provisions of paragraphs (a) and (b) of
this section, held in a customer's account by a registered broker/dealer
in securities, may continue to be held for the customer by the broker/
dealer provided interest is credited to the account on any balance not
invested in securities in accordance with Sec. 515.513. The interest
paid on such accounts by a broker/dealer who does not elect to hold such
property for a customer's account in a domestic bank shall not be less
than the maximum rate payable on the shortest time deposit available in
any domestic bank in the jurisdiction in which the broker/dealer holds
the account.
(f) Property subject to the provisions of paragraphs (a) and (b) of
this section, held by a state agency charged with the custody of
abandoned or unclaimed property under Sec. 515.554 may continue to be
held by the agency provided interest is credited to the blocked account
in which the property is held by the agency, or the property is held by
the agency in a blocked account in a domestic bank. The interest
credited to such accounts by an agency which does not elect to hold such
property in a domestic bank shall not be less than the maximum rate
payable on the shortest time deposit available in any domestic bank in
the state.
(g) For purposes of this section, the term interest-bearing account
means a blocked account earning interest at no less than the maximum
rate payable on the shortest time deposit in the domestic bank where the
account is held: Provided however, That such an account may include six-
month Treasury bills or insured certificates, with a maturity not
exceeding six-months, appropriate to the amounts involved.
(h) The following types of property are subject to paragraphs (a)
and (b) of this section:
(1) Any currency, bank deposit and bank accounts subject to the
provisions of Sec. 515.201;
(2) Any property subject to the provisions of Sec. 515.201 which
consists, in whole or in part, of undisputed and either liquidated or
matured debts, claims, obligations or other evidence of indebtedness, to
the extent of any amount that is undisputed and liquidated or matured;
and
(3) Any proceeds resulting from the payment of an obligation under
paragraph (c) of this section.
(i) For purposes of this section, the term domestic bank includes
any FSLIC-insured institution (as defined in 12 CFR 561.1).
(j) For the purposes of this section the term person includes the
United States Government or any agency or instrumentality thereof,
except where the agency or instrumentality submits to the Office of
Foreign Assets Control an opinion of its General Counsel that either:
(1) It lacks statutory authority to comply with this section, or
(2) The requirements of paragraphs (a) and (b) of this section are
inconsistent with the statutory program under which it operates.
[44 FR 11770, Mar. 2, 1979]
Sec. 515.206 Exemption of information and informational materials.
(a) The importation from any country and the exportation to any
country of information or informational materials as defined in
Sec. 515.332, whether commercial or otherwise, regardless of format or
medium of transmission, are exempt from the prohibitions and regulations
of this part except for payments owed to Cuba for telecommunications
services between Cuba and the United States, which are subject to the
provisions of Sec. 515.542.
(b) This section does not authorize transactions related to
information or informational materials not fully created and in
existence at the date of the transaction, or to the substantive or
artistic alteration or enhancement of information or informational
materials, or to the provision of marketing and business consulting
services by a person subject to the jurisdiction of the United States.
Such prohibited transactions include, without limitation, payment of
advances for information or informational materials not yet created and
completed, provision of services to market, produce or co-produce,
create or assist in the creation of information or informational
materials, and payment of royalties to
[[Page 472]]
a designated national with respect to income received for enhancements
or alterations made by persons subject to the jurisdiction of the United
States to information or informational materials imported from a
designated national.
(c) This section does not authorize transactions incident to the
transmission of restricted technical data as defined in section 779 of
the Export Administration Regulations, 15 CFR parts 768-799, or to the
exportation of goods for use in the transmission of any data. The
exportation of such goods to designated foreign countries is prohibited,
as provided in Sec. 515.201 of this part and Sec. 785.1 of the Export
Administration Regulations.
(d) This section does not authorize transactions related to travel
to Cuba when such travel is not otherwise authorized under Sec. 515.560
or by specific license.
Example 1: A U.S. publisher ships 500 copies of a book to Cuba
directly from Miami aboard a chartered aircraft, and receives payment by
means of a letter of credit issued by a Cuban bank and confirmed by an
American bank. These are permissible transactions under this section.
Example 2: A Cuban party exports a single master copy of a Cuban
motion picture to a U.S. party and licenses the U.S. party to duplicate,
distribute, show and exploit in the United States the Cuban film in any
medium, including home video distribution, for five years, with the
Cuban party receiving 40% of the net income. All transactions relating
to the activities described in this example are authorized under this
section or Sec. 515.545.
Example 3: A U.S. recording company proposes to contract with a
Cuban musician to create certain musical compositions, and to advance
royalties of $10,000 to the musician. The music written in Cuba is to be
recorded in a studio that the recording company owns in the Bahamas.
These are all prohibited transactions. The U.S. party is prohibited
under Sec. 515.201 from contracting for the Cuban musician's services,
from transferring $10,000 to Cuba to pay for those services, and from
providing the Cuban with production services through the use of its
studio in the Bahamas. No information or informational materials are in
being at the time of these proposed transactions. However, the U.S.
recording company may contract to purchase and import preexisting
recordings by the Cuban musician, or to copy the recordings in the
United States and pay negotiated royalties to Cuba under this section or
Sec. 515.545.
Example 4: A Cuban party enters into a subpublication agreement
licensing a U.S. party to print and publish copies of a musicial
composition and to sub-license rights of public performance, adaptation,
and arrangement of the musical composition, with payment to be a
percentage of income received. All transactions related to the
activities described in this example are authorized under this section
and Sec. 515.545, except for adaptation, and arrangement, which
constitute artistic enhancement of the Cuban composition. Payment to the
Cuban party may not reflect income received as a result of these
enhancements.
[54 FR 5233, Feb. 2, 1989, as amended at 60 FR 39256, Aug. 2, 1995]
Sec. 515.207 Entry of vessels engaged in trade with Cuba.
Except as specifically authorized by the Secretary of the Treasury
(or any person, agency or instrumentality designated by him), by means
of regulations, rulings, instructions, licenses or otherwise,
(a) No vessel that enters a port or place in Cuba to engage in the
trade of goods or the purchase or provision of services, may enter a
U.S. port for the purpose of loading or unloading freight for a period
of 180 days from the date the vessel departed from a port or place in
Cuba; and
(b) No vessel carrying goods or passengers to or from Cuba or
carrying goods in which Cuba or a Cuban national has an interest may
enter a U.S. port with such goods or passengers on board.
[58 FR 34710, June 29, 1993]
Sec. 515.208 Restrictions on loans, credits and other financing.
No United States national, permanent resident alien, or United
States agency may knowingly make a loan, extend credit or provide other
financing for the purpose of financing transactions involving
confiscated property the claim to which is owned by a United States
national, except for financing by a United States national owning such a
claim for a transaction permitted under United States law.
[61 FR 37386, July 18, 1996]
[[Page 473]]
Subpart C--General Definitions
Sec. 515.301 Foreign country.
The term foreign country also includes, but not by way of
limitation:
(a) The state and the government of any such territory on or after
the ``effective date'' as well as any political subdivision, agency, or
instrumentality thereof or any territory, dependency, colony,
protectorate, mandate, dominion, possession or place subject to the
jurisdiction thereof,
(b) Any other government (including any political subdivision,
agency, or instrumentality thereof) to the extent and only to the extent
that such government exercises or claims to exercise control, authority,
jurisdiction or sovereignty over territory which on the ``effective
date'' constituted such foreign country,
(c) Any person to the extent that such person is, or has been, or to
the extent that there is reasonable cause to believe that such person
is, or has been, since the ``effective date,'' acting or purporting to
act directly or indirectly for the benefit or on behalf of any of the
foregoing, and
(d) Any territory which on or since the ``effective date'' is
controlled or occupied by the military, naval or police forces or other
authority of such foreign country.
Sec. 515.302 National.
(a) The term national shall include:
(1) A subject or citizen of a country or any person who has been
domiciled in or a permanent resident of that country at any time on or
since the ``effective date,'' except persons who were resident or
domiciled there in the service of the U.S. Government.
(2) Any partnership, association, corporation, or other
organization, organized under the laws of, or which on or since the
``effective date'' had or has had its principal place of business in a
foreign country, or which on or since such effective date was or has
been controlled by, or a substantial part of the stock, shares, bonds,
debentures, notes, drafts, or other securities or obligations of which,
was or has been owned or controlled by, directly or indirectly, a
foreign country and/or one or more nationals thereof as defined in this
section.
(3) Any person to the extent that such person is or has been, since
the ``effective date'' acting or purporting to act directly or
indirectly for the benefit or on behalf of any national of a foreign
country.
(4) Any other person who there is reasonable cause to believe is a
``national'' as defined in this section.
(b) The Secretary of the Treasury retains full power to determine
that any person is or shall be deemed to be a ``national'' within the
meaning of this section, and to specify the foreign country of which
such person is or shall be deemed to be a national.
[28 FR 6974, July 9, 1963, as amended at 50 FR 27437, July 3, 1985]
Sec. 515.303 Nationals of more than one foreign country.
(a) Any person who by virtue of any provision in this chapter is a
national of more than one foreign country shall be deemed to be a
national of each of such foreign countries.
(b) In any case in which a person is a national of two or more
designated foreign countries, as defined in this chapter, a license or
authorization with respect to nationals of one of such designated
foreign countries shall not be deemed to apply to such person unless a
license or authorization of equal or greater scope is outstanding with
respect to nationals of each other designated foreign country of which
such person is a national.
(c) In any case in which the combined interests of two or more
designated foreign countries, as defined in this chapter, and/or
nationals thereof are sufficient in the aggregate to constitute control
or ownership of 25 per centum or more of the stock, shares, bonds,
debentures, notes, drafts, or other securities or obligations of a
partnership, association, corporation or other organization, but such
control or a substantial part of such stock, shares, bonds, debentures,
notes, drafts, or other securities or obligations is not held by any one
such foreign country and/or national thereof, such partnership,
association, corporation or other organization shall be deemed to be a
national of each of such foreign countries.
[[Page 474]]
Sec. 515.305 Designated national.
For the purposes of this part, the term designated national shall
mean Cuba and any national thereof including any person who is a
specially designated national.
Sec. 515.306 Specially designated national.
(a) The term specially designated national shall mean:
(1) Any person who is determined by the Secretary of the Treasury to
be a specially designated national,
(2) Any person who on or since the ``effective date'' has acted for
or on behalf of the Government or authorities exercising control over a
designated foreign country, or
(3) Any partnership, association, corporation or other organization
which on or since the ``effective date'' has been owned or controlled
directly or indirectly by the Government or authorities exercising
control over a designated foreign country or by any specially designated
national.
(b) [Reserved]
Note to Sec. 515.306: Please refer to the appendices at the end of
this chapter for listings of persons designated pursuant to this part.
[28 FR 6974, July 9, 1963, as amended at 61 FR 32938, June 26, 1996]
Sec. 515.307 Unblocked national.
Any person licensed pursuant to Sec. 515.505 licensed as an
unblocked national shall, while so licensed, be regarded as a person
within the United States who is not a national of any designated foreign
country: Provided, however, That the licensing of any person as an
unblocked national shall not be deemed to suspend in any way the
requirements of any section of this chapter relating to reports, or the
production of books, documents, and records specified therein.
[28 FR 6974, July 9, 1963, as amended at 54 FR 5233, Feb. 2, 1989]
Sec. 515.308 Person.
The term person means an individual, partnership, association,
corporation, or other organization.
Sec. 515.309 Transactions.
The phrase transactions which involve property in which a designated
foreign country, or any national thereof, has any interest of any nature
whatsoever, direct or indirect, includes, but not by way of limitation:
(a) Any payment or transfer to such designated foreign country or
national thereof,
(b) Any export or withdrawal from the United States to such
designated foreign country, and
(c) Any transfer of credit, or payment of an obligation, expressed
in terms of the currency of such designated foreign country.
Sec. 515.310 Transfer.
The term transfer shall mean any actual or purported act or
transaction, whether or not evidenced by writing, and whether or not
done or preformed within the United States, the purpose, intent, or
effect of which is to create, surrender, release, transfer, or alter,
directly or indirectly, any right, remedy, power, privilege, or interest
with respect to any property and without limitation upon the foregoing
shall include the making, execution, or delivery of any assignment,
power, conveyance, check, declaration, deed, deed of trust, power of
attorney, power of appointment, bill of sale, mortgage, receipt,
agreement, contract, certificate, gift, sale, affidavit, or statement;
the appointment of any agent, trustee, or other fiduciary; the creation
or transfer of any lien; the issuance, docketing, filing, or the levy of
or under any judgment, decree, attachment, execution, or other judicial
or administrative process or order, or the service of any garnishment;
the acquisition of any interest of any nature whatsoever by reason of a
judgment or decree of any foreign country; the fulfillment of any
condition, or the exercise of any power of appointment, power of
attorney, or other power.
Sec. 515.311 Property; property interests.
(a) Except as defined in Sec. 515.203(f) for the purposes of that
section the terms property and property interest or property interests
shall include, but not by way of limitation, money, checks, drafts,
[[Page 475]]
bullion, bank deposits, savings accounts, debts, indebtedness
obligations, notes, debentures, stocks, bonds, coupons, and other
financial securities, bankers' acceptances, mortgages, pledges, liens or
other rights in the nature of security, warehouse receipts, bills of
lading, trust receipts, bills of sale, any other evidences of title,
ownership or indebtedness, powers of attorney, goods, wares,
merchandise, chattels, stocks on hand, ships, goods on ships, real
estate mortgages, deeds of trust, vendors' sales agreements, land
contracts, real estate and any interest therein, leaseholds, ground
rents, options, negotiable instruments, trade acceptances, royalties,
book accounts, accounts payable, judgments, patents, trademarks,
copyrights, contracts or licenses affecting or involving patents,
trademarks or copyrights, insurance policies, safe deposit boxes and
their contents, annuities, pooling agreements, contracts of any nature
whatsoever, services, and any other property, real, personal, or mixed,
tangible or intangible, or interest or interests therein, present,
future or contingent.
(b) As used in Sec. 515.208, the term property means any property
(including patents, copyrights, trademarks, and any other form of
intellectual property), whether real, personal, or mixed, and any
present, future, or contingent right, security, or other interest
therein, including any leasehold interest.
[28 FR 6974, July 9, 1963, as amended at 50 FR 27437, July 3, 1985; 56
FR 49847, Oct. 2, 1991; 61 FR 37386, July 18, 1996]
Sec. 515.312 Interest.
The term interest when used with respect to property shall mean an
interest of any nature whatsoever, direct or indirect.
Sec. 515.313 Property subject to the jurisdiction of the United
States.
(a) The phrase property subject to the jurisdiction of the United
States includes, without limitation, securities, whether registered or
bearer, issued by:
(1) The United States or any State, district, territory, possession,
county, municipality, or any other subdivision or agency or
instrumentality of any thereof; or
(2) Any person with the United States whether the certificate which
evidences such property or interest is physically located within or
outside the United States.
(b) The phrase property subject to the jurisdiction of the United
States also includes, without limitation, securities, whether registered
or bearer, by whomsoever issued, if the instrument evidencing such
property or interest is physically located within the United States.
Sec. 515.314 Banking institution.
The term banking institution shall include any person engaged
primarily or incidentally in the business of banking, of granting or
transferring credits, or of purchasing or selling foreign exchange or
procuring purchases and sellers thereof, as principal or agent, or any
person holding credits for others as a direct or incidental part of his
business, or any broker; and, each principal, agent, home office, branch
or correspondent of any person so engaged shall be regarded as a
separate ``banking institution.''
Sec. 515.316 License.
Except as otherwise specified, the term license shall mean any
license or authorization contained in or issued pursuant to this part.
Sec. 515.317 General license.
A general license is any license or authorization the terms of which
are set forth in this part.
Sec. 515.318 Specific license.
A specific license is any license or authorization issued pursuant
to this part but not set forth in this part.
[28 FR 6974, July 9, 1963; 28 FR 7427, July 20, 1963]
Sec. 515.319 Blocked account.
The term blocked account shall mean an account in which any
designated national has an interest, with respect to which account
payments, transfers or withdrawals or other dealings may not be made or
effected except pursuant to an authorization or license authorizing such
action. The term blocked account
[[Page 476]]
shall not be deemed to include accounts of unblocked nationals.
[28 FR 6974, July 9, 1963; 28 FR 7427, July 20, 1963]
Sec. 515.320 Domestic bank.
The term domestic bank shall mean any branch or office within the
United States of any of the following which is not a national of a
designated foreign country; any bank or trust company incorporated under
the banking laws of the United States or any State, territory, or
district of the United States, or any private bank or banker subject to
supervision and examination under the banking laws of the United States
or of any State, territory or district of the United States. The
Secretary of the Treasury may also authorize any other banking
institution to be treated as a ``domestic bank'' for the purpose of this
definition or for the purpose of any or all sections of this part.
Sec. 515.321 United States; continental United States.
The term United States means the United States and all areas under
the jurisdiction or authority thereof, including the Trust Territory of
the Pacific Islands. The term continental United States means the States
of the United States and the District of Columbia.
[49 FR 27144, July 2, 1984]
Sec. 515.322 Authorized trade territory; member of the authorized trade
territory.
(a) The term authorized trade territory includes all countries,
including any colony, territory, possession, or protectorate, except
those countries subject to sanctions pursuant to this chapter. The term
does not include the United States.
(b) The term member of the authorized trade territory shall mean any
of the foreign countries or political subdivisions comprising the
authorized trade territory.
[43 FR 51762, Nov. 7, 1978, as amended at 60 FR 54195, Oct. 20, 1995]
Sec. 515.323 Occupied area.
The term occupied area shall mean any territory occupied by a
designated foreign country which was not occupied by such country prior
to the ``effective date'' of this part.
Sec. 515.325 National securities exchange.
The term national securities exchange shall mean an exchange
registered as a national securities exchange under section 6 of the
Securities Exchange Act of 1934 (48 Stat. 885, 15 U.S.C. 78f).
Sec. 515.326 Custody of safe deposit boxes.
Safe deposit boxes shall be deemed to be in the custody not only of
all persons having access thereto but also of the lessors of such boxes
whether or not such lessors have access to such boxes. The foregoing
shall not in any way be regarded as a limitation upon the meaning of the
term custody.
Sec. 515.327 Blocked estate of a decedent.
The term blocked estate of a decedent shall mean any decedent's
estate in which a designated national has an interest. A person shall be
deemed to have an interest in a decedent's estate if he:
(a) Was the decedent;
(b) Is a personal representative; or
(c) Is a creditor, heir, legatee, devisee, distributee, or
beneficiary.
Sec. 515.329 Person subject to the jurisdiction of the United States.
The term person subject to the jurisdiction of the United States
includes:
(a) Any individual, wherever located, who is a citizen or resident
of the United States;
(b) Any person within the United States as defined in Sec. 515.330;
(c) Any corporation organized under the laws of the United States or
of any State, territory possession, or district of the United States;
and
(d) Any corporation, partnership, or association, wherever organized
or doing business, that is owned or controlled by persons specified in
paragraph (a) or (c) of this section.
[50 FR 27437, July 3, 1985]
Sec. 515.330 Person within the United States.
(a) The term person within the United States, includes:
(1) Any person, wheresoever located, who is a resident of the United
States;
[[Page 477]]
(2) Any person actually within the United States;
(3) Any corporation organized under the laws of the United States or
of any state, territory, possession, or district of the United States;
and
(4) Any partnership, association, corporation, or other
organization, wheresoever organized, or doing business, which is owned
or controlled by any person or persons specified in paragraph (a) (1),
(2), or (3) of the section.
(b) [Reserved]
Sec. 515.331 Merchandise.
The term merchandise means all goods, wares and chattels of every
description without limitation of any kind.
Sec. 515.332 Information and informational materials.
(a) For purposes of this part, the term information and
informational materials means:
(1) Publications, films, posters, phonograph records, photographs,
microfilms, microfiche, tapes, compact disks, CD ROMs, artworks, news
wire feeds, and other information and informational articles.
(2) To be considered informational materials, artworks must be
classified under Chapter subheading 9701, 9702, or 9703 of the
Harmonized Tariff Schedule of the United States.
(b) The term information and informational materials does not
include items:
(1) That would be controlled for export pursuant to section 5 of the
Export Administration Act of 1979, 50 U.S.C. App. 2401-2420 (1993) (the
``EAA''), or section 6 of the EAA to the extent that such controls
promote nonproliferation of antiterrorism policies of the United States,
including ``software'' that is not ``publicly available'' as these terms
are defined in 15 CFR parts 779 and 799.1 (1994); or
(2) With respect to which acts are prohibited by 18 U.S.C. chapter
37.
[60 FR 39256, Aug. 2, 1995]
Sec. 515.333 Depository institution.
The term depository institution means any of the following:
(a) An insured bank as defined in section 3 of the Federal Deposit
Insurance Act;
(b) An insured institution as defined in section 408(a) of the
National Housing Act;
(c) An insured credit union as defined in section 101 of the Federal
Credit Union Act; or
(d) Any other institution that is carrying on banking activities
pursuant to a charter from a Federal or state banking authority.
[57 FR 53997, Nov. 16, 1992]
Sec. 515.334 United States national.
As used in Sec. 515.208, the term United States national means:
(a) Any United States citizen; or
(b) Any other legal entity which is organized under the laws of the
United States, or of any State, the District of Columbia, or any
commonwealth, territory, or possession of the United States, and which
has its principal place of business in the United States.
[61 FR 37386, July 18, 1996]
Sec. 515.335 Permanent resident alien.
As used in Sec. 515.208, the term permanent resident alien means an
alien lawfully admitted for permanent residence into the United States.
[61 FR 37386, July 18, 1996]
Sec. 515.336 Confiscated.
As used in Sec. 515.208, the term confiscated refers to:
(a) The nationalization, expropriation, or other seizure by the
Cuban Government of ownership or control of property, on or after
January 1, 1959:
(1) Without the property having been returned or adequate and
effective compensation provided; or
(2) Without the claim to the property having been settled pursuant
to an international claims settlement agreement or other mutually
accepted settlement procedure; and
(b) The repudiation by the Cuban Government of, the default by the
Cuban Government on, or the failure of the Cuban Government to pay, on
or after January 1, 1959:
(1) A debt of any enterprise which has been nationalized,
expropriated, or otherwise taken by the Cuban Government;
[[Page 478]]
(2) A debt which is a charge on property nationalized, expropriated,
or otherwise taken by the Cuban Government; or
(3) A debt which was incurred by the Cuban Government in
satisfaction or settlement of a confiscated property claim.
[61 FR 37386, July 18, 1996]
Subpart D--Interpretations
Sec. 515.401 Reference to amended sections.
Reference to any section of this part or to any regulation, ruling,
order, instruction, direction or license issued pursuant to this part
shall be deemed to refer to the same as currently amended unless
otherwise so specified.
Sec. 515.402 Effect of amendment of sections of this part or of other
orders, etc.
Any amendment, modification, or revocation of any section of this
part or of any order, regulation, ruling, instruction, or license issued
by or under the direction of the Secretary of the Treasury pursuant to
section 3(a) or 5(b) of the Trading With the Enemy Act, as amended, or
pursuant to Proclamation 3447, shall not unless otherwise specifically
provided be deemed to affect any act done or omitted to be done, or any
suit or proceeding had or commenced in any civil or criminal case, prior
to such amendment, modification, or revocation, and all penalties,
forfeitures, and liabilities under any such section, order, regulation,
ruling, instruction or license shall continue and may be enforced as if
such amendment, modification, or revocation had not been made.
Sec. 515.403 Termination and acquisition of the interest of a
designated national.
(a) Except as provided in Sec. 515.525, whenever a transaction
licensed or authorized by or pursuant to this part results in the
transfer of property (including any property interest) away from a
designated national, such property shall no longer be deemed to be
property in which a designated national has or has had an interest
unless there exists in such property an interest of a designated
national, the transfer of which has not been effected pursuant to
license or other authorization.
(b) Unless otherwise specifically provided in a license or
authorization contained in or issued pursuant to this part, if property
(including any property interest) is transferred to a designated
national such property shall be deemed to be property in which there
exists the interest of a designated national.
Sec. 515.404 Transactions between principal and agent.
A transaction between any person within the United States and any
principal, agent, home office, branch, or correspondent, outside the
United States of such person is a transaction prohibited by Sec. 515.201
to the same extent as if the parties to the transaction were in no way
affiliated or associated with each other.
Sec. 515.405 Exportation of securities, currency, checks, drafts and
promissory notes.
Section 515.201 prohibits the exportation of securities, currency,
checks, drafts and promissory notes to a designated foreign country.
Sec. 515.406 Drafts under irrevocable letters of credit; documentary
drafts.
Section 515.201 prohibits the presentation, acceptance or payment
of:
(a) Drafts or other orders for payment drawn under irrevocable
letters of credit issued in favor or on behalf of any designated
national;
(b) Drafts or other orders for payment, in which any designated
national has on or since the ``effective date'' had any interest, drawn
under any irrevocable letter of credit; and
(c) Documentary drafts in which any designated national has on or
since the ``effective date'' had any interest.
Sec. 515.407 Administration of blocked estates of decedents.
Section 515.201 prohibits all transactions incident to the
administration of the blocked estate of a decedent, including the
appointment and qualification of personal representatives, the
collection and liquidation of assets, the payment of claims, and
distribution to
[[Page 479]]
beneficiaries. Attention is directed to Sec. 515.523 which authorizes
certain transactions in connection with the administration of blocked
estates of decedents, and Sec. 515.568 which authorizes the unblocking
by specific license of estate assets to certain heirs under certain
circumstances.
[28 FR 6974, July 9, 1963, as amended at 54 FR 5234, Feb. 2, 1989]
Sec. 515.408 Access to certain safe deposit boxes prohibited.
Section 515.201 prohibits access to any safe deposit box within the
United States in the custody of any designated national or containing
any property in which any designated national has any interest or which
there is reasonable cause to believe contains property in which any such
designated national has any interest. Attention is directed to
Sec. 515.517 which authorizes access to such safe deposit boxes under
certain conditions.
Sec. 515.409 Certain payments to a designated foreign country and
nationals through third countries.
Section 515.201 prohibits any request or authorization made by or on
behalf of a bank or other person within the United States to a bank or
other person outside of the United States as a result of which request
or authorization such latter bank or person makes a payment or transfer
of credit either directly or indirectly to a designated national.
Sec. 515.410 Dealing abroad in Cuban origin commodities.
Section 515.204 prohibits, unless licensed, the importation of
commodities of Cuban origin. It also prohibits, unless licensed, persons
subject to the jurisdiction of the United States from purchasing,
transporting or otherwise dealing in commodities of Cuban origin which
are outside the United States.
[39 FR 25317, July 10, 1974]
Sec. 515.411 Exclusion from authorization in Sec. 515.518.
Heirs, legatees, etc. who acquire an interest in blocked property
after July 8, 1963 pursuant to Sec. 515.525 are excluded from the
provisions of Sec. 515.518 authorizing debits to blocked accounts for
certain personal expenditures.
[39 FR 25317, July 10, 1974]
Sec. 515.413 [Reserved]
Sec. 515.415 Travel to Cuba; transportation of certain Cuban nationals.
(a) The following transactions are prohibited by Sec. 515.201 when
in connection with the transportation of any Cuban national, except a
Cuban national holding an unexpired immigrant or non-immigrant visa or a
returning resident of the United States, from Cuba to the United States,
unless otherwise licensed:
(1) Transactions incident to travel to, from, or within Cuba;
(2) The transportation to Cuba of a vessel or aircraft;
(3) The transportation into the United States of any vessel or
aircraft which has been in Cuba since the effective date, regardless of
registry;
(4) The provision of any services to a Cuban national, regardless of
whether any consideration for such services is furnished by the Cuban
national;
(5) The transportation or importation of baggage or other property
of a Cuban national;
(6) The transfer of funds or other property to any person where such
transfer involves the provision of services to a Cuban national or the
transportation or importation of, or any transactions involving,
property in which Cuba or any Cuban national has any interest, including
baggage or other such property;
(7) Any other transaction such as payment of port fees and charges
in Cuba and payment for fuel, meals, lodging; and
(8) The receipt or acceptance of any gratuity, grant, or support in
the form of meals, lodging, fuel, payments of travel or maintenance
expenses, or otherwise, in connection with travel to or from Cuba or
travel or maintenance within Cuba.
(b) Transactions incident to the travel to the United States of
Cuban nationals traveling without a visa issued by the Department of
State are not authorized under the provisions of Sec. 515.564.
[[Page 480]]
(c) Transactions described in paragraph (a) of this section are not
``transactions ordinarily incident to travel to and from Cuba'' within
the general license of Sec. 515.560.
[45 FR 32671, May 19, 1980]
Sec. 515.416 Professional research and similar activities.
(a) Section 515.560(b) sets forth the criteria on which specific
licenses for transactions related to travel to, from, and within Cuba
may be issued for persons engaging in professional research and similar
activities of a noncommercial, academic nature. Persons traveling to
Cuba to engage in professional research must engage in a full work
schedule in Cuba, and there must be a substantial likelihood of public
dissemination of the product of their research. No transactions related
to tourist or recreational travel within Cuba are authorized in
connection with professional research, except those that are consistent
with a full schedule of research activities.
(1) Persons are considered to be engaging in professional research
for purposes of this section:
(i) If they are full-time professionals who travel to Cuba to do
research in their professional areas and their research is specifically
related to Cuba; or
(ii) If they are acting on behalf of an organization with an
established interest in international relations to collect information
related to Cuba.
(2) Similar activities include attendance by professionals with an
established interest in Cuba at professional meetings where research on
Cuba is shared, and travel for noncommercial research purposes
specifically related to Cuba by persons who are working to qualify
themselves academically as professionals (e.g., certain graduate degree
candidates). Study visits to Cuba in connection with pre-college or
undergraduate college course work are not within the scope of the term
professional research and similar activities.
(b) Categories of travel which do not qualify as professional
research or similar activities and for which specific license requests
will be denied include recreational travel; tourist travel; travel in
pursuit of a hobby; general study tours; general orientation visits;
student class field trips; youth camps; research for personal
satisfaction only; travel by fishing or bird-watching groups and similar
affinity groups; and any travel for an authorized research purpose, if
the schedule of activities includes free time, travel, or recreation in
excess of that consistent with a full work schedule of professional
research and similar activities.
(c) A group does not fall within the scope of the term professional
research and similar activities merely because some members of the group
could qualify individually for specific licensing under this category.
For example, a specific license authorizing travel-related transactions
by a fish biologist who travels to Cuba to engage in professional
research does not authorize other persons who might travel with the fish
biologist but whose principal purpose in travel is to engage in
recreational or trophy fishing. The fact that such persons may engage in
certain activities with, or under the direction of, the professional
fish biologist, such as measuring or recording facts about their catch,
does not bring these individuals' activities within the scope of
professional research and similar activities.
(d) A person will not qualify as engaging in professional research
or similar activities merely because that person is a professional who
plans to travel to Cuba. For example, a professor of history interested
in traveling to Cuba for the principal purpose of learning or practicing
Spanish or attending general purpose lectures devoted to Cuban culture
and contemporary life would not qualify for a specific license. A
doctoral candidate in economics traveling to Cuba to undertake research
for a dissertation on the Cuban economy may qualify for a specific
license for activities directly related to the research, but would not
be authorized to stay an extra week in Cuba in order to attend a seminar
on Cuban arts and crafts.
[59 FR 44885, Aug. 30, 1994, as amended at 60 FR 54195, Oct. 20, 1995]
Sec. 515.417 Free-lance journalists.
(a) Section 515.560(a)(2) authorizes travel transactions for
journalists who
[[Page 481]]
are regularly employed in that capacity by a news reporting
organization. For individuals who wish to travel to Cuba to do research
for a free-lance article, specific licenses will be issued pursuant to
Sec. 515.560(b) on a case-by-case basis upon submission of an adequate
written application including the following documentation:
(1) A detailed itinerary and a detailed description of the proposed
research; and
(2) A resume or similar document showing a record of publications.
(b) To qualify for specific licensing pursuant to Sec. 515.560(b),
the itinerary for the proposed research in Cuba for a free-lance article
must demonstrate that the research constitutes a full work schedule that
could not be accomplished in a shorter period of time.
[60 FR 54195, Oct. 20, 1995]
Sec. 515.418 Transactions related to telecommunications.
(a) Section 515.542(c) provides that specific licenses may be issued
for transactions incident to the receipt or transmission of
communications between the United States and Cuba. Pursuant to
Sec. 515.542(c), licenses may be issued for payment to Cuba for full or
partial payment of amounts due Cuba as a result of the provision of
telecommunications services provided such services and payments are
approved by the Federal Communications Commission and are consistent
with policy guidelines governing telecommunications between the United
States and Cuba established to implement the Cuban Democracy Act of
1992.
(b) Section 515.560(b) provides, in part, that licenses will be
issued in appropriate cases for transactions for travel related to the
transmission of information. Pursuant to Sec. 515.560(b), licenses may
be issued on a case-by-case basis for travel transactions related to
travel for negotiation or performance of telecommunications agreements
for service between the United States and Cuba.
[58 FR 45060, Aug. 26, 1993]
Sec. 515.419 Travel related to educational activities.
(a) Section 515.560(b) provides, in part, that specific licenses
will be issued to persons for travel to Cuba for clearly defined
educational activities. Transactions related to travel and maintenance
in Cuba for the following activities will be licensed upon submission of
an adequate written application:
(1) Attendance at a meeting or conference held in Cuba by a person
with an established interest in the subject of the meeting or
conference, provided that:
(i) The meeting or conference is organized by an international
institution or association that regularly sponsors meetings or
conferences in other countries; and
(ii) The purpose of the meeting or conference is not the promotion
of tourism in Cuba or other commercial activities involving Cuba that
are inconsistent with this part; and
(2) Activities related to study for an undergraduate or graduate
degree sponsored by a college or university located in the United
States.
(b) Transactions related to travel that is primarily tourist travel,
including self-directed educational activities that are intended for
personal enrichment, will not be licensed pursuant to Sec. 515.560(b).
[60 FR 54196, Oct. 20, 1995]
Subpart E--Licenses, Authorizations, and Statements of Licensing Policy
Sec. 515.502 Effect of subsequent license or authorization.
(a) No license or other authorization contained in this part or
otherwise issued by or under the direction of the Secretary of the
Treasury pursuant to section 3(a) or 5(b) of the Trading With the Enemy
Act, as amended, or section 620(a), Pub. L. 87-195, or Proclamation
3447, shall be deemed to authorize or validate any transaction effected
prior to the issuance thereof, unless such license or other
authorization specifically so provides.
[[Page 482]]
(b) No regulation, ruling, instruction, or license authorizes a
transaction prohibited under this part unless the regulation, ruling,
instruction, or license is issued by the Treasury Department and
specifically refers to this part. No regulation, ruling, instruction or
license referring to this part shall be deemed to authorize any
transaction prohibited by part 500 of this chapter unless the
regulation, ruling, instruction or license specifically refers to part
500.
Sec. 515.503 Exclusion from licenses and authorizations.
The Secretary of the Treasury reserves the right to exclude from the
operation of any license or from the privileges therein conferred or to
restrict the applicability thereof with respect to particular persons,
transactions or property or classes thereof. Such action shall be
binding upon all persons receiving actual notice or constructive notice
thereof.
Sec. 515.504 Certain judicial proceedings with respect to property of
designated nationals.
(a) Subject to the limitations of paragraphs (b), (c) and (d) of
this section judicial proceedings are authorized with respect to
property in which on or since the ``effective date'' there has existed
the interest of a designated national.
(b) A judicial proceeding is authorized by this section only if it
is based upon a cause of action which accrued prior to the ``effective
date''.
(c) This section does not authorize or license:
(1) The entry of any judgment or of any decree or order of similar
or analogous effect upon any judgment book, minute book, journal or
otherwise, or the docketing of any judgment in any docket book, or the
filing of any judgment roll or the taking of any other similar or
analogous action.
(2) Any payment or delivery out of a blocked account based upon a
judicial proceeding nor does it authorize the enforcement or carrying
out of any judgment or decree or order of similar or analogous effect
with regard to any property in which a designated national has an
interest.
(d) If a judicial proceeding relates to property in which there
exists the interest of any designated national other than a person who
would not have been a designated national except for his relationship to
an occupied area, such proceeding is authorized only if it is based upon
a claim in which no person other than any of the following has had an
interest since the ``effective date'':
(1) A citizen of the United States;
(2) A corporation organized under the laws of the United States or
any State, territory or possession thereof, or the District of Columbia;
(3) A natural person who is and has been since the ``effective
date'' a resident of the United States and who has not been a specially
designated national;
(4) A legal representative (whether or not appointed by a court of
the United States) or successor in interest by inheritance, device,
bequest, or operation of law, who falls within any of the categories
specified in paragraphs (a) (1), (2), and (3) of this section but only
to the same extent that their principals or predecessors would be
qualified by such paragraphs.
Sec. 515.505 Certain persons unblocked.
(a) The following persons are hereby licensed as unblocked
nationals.
(1) Any person resident in, or organized under the laws of a
jurisdiction in, the United States or the authorized trade territory who
or which has never been a designated national;
(2) Any individual resident in the United States who is not a
specially designated national; and
(3) Any corporation, partnership or association that would be a
designated national solely because of the interest therein of an
individual licensed in paragraph (a) or (b) of this section as an
unblocked national.
(b) Individual nationals of a designated country who have taken up
residence in the authorized trade territory may apply to the Office of
Foreign Assets Control to be specifically licensed as unblocked
nationals.
(c) The licensing of any person as an unblocked national shall not
suspend the requirements of any section of this
[[Page 483]]
chapter relating to the maintenance or production of records.
[50 FR 27437, July 3, 1985, as amended at 54 FR 5234, Feb. 2, 1989]
Secs. 515.506--515.507 [Reserved]
Sec. 515.508 Payments to blocked accounts in domestic banks.
(a) Any payment or transfer of credit to a blocked account in a
domestic bank in the name of any designated national is hereby
authorized providing such payment or transfer shall not be made from any
blocked account if such payment or transfer represents, directly or
indirectly, a transfer of the interest of a designated national to any
other country or person.
(b) This section does not authorize:
(1) Any payment or transfer to any blocked account held in a name
other than that of the designated national who is the ultimate
beneficiary of such payment or transfer; or
(2) Any foreign exchange transaction including, but not by way of
limitation, any transfer of credit, or payment of an obligation,
expressed in terms of the currency of any foreign country.
(c) This section does not authorize any payment or transfer of
credit comprising an integral part of a transaction which cannot be
effected without the subsequent issuance of a further license.
(d) This section does not authorize the crediting of the proceeds of
the sale of securities held in a blocked account or a subaccount
thereof, or the income derived from such securities to a blocked account
or subaccount under any name or designation which differs from the name
or designation of the specific blocked account or subaccount in which
such securities were held.
(e) This section does not authorize any payment or transfer from a
blocked account in a domestic bank to a blocked account held under any
name or designation which differs from the name or designation of the
blocked account from which the payment or transfer is made.
(f) Banking institutions receiving instructions to execute payments
or transfers under paragraph (a) of this section must provide written
notification to the Office of Foreign Assets Control, Compliance
Programs Division, U.S. Treasury Department, 1500 Pennsylvania Avenue
NW--Annex, Washington DC 20220, within 10 business days from the value
date of the payment or transfer. The notification shall include a
photocopy of the payment or transfer instructions received, shall
confirm that the payment or transfer has been deposited into a new or
existing blocked account established in the name of the designated
national pursuant to the requirements of this part and shall provide the
account number, the name of the account, the location of the account,
the name and address of the transferee banking institution, the date of
the deposit, the amount of the payment transfer, the name and telephone
number of a contact person at the transferee financial institution from
whom compliance information may be obtained, and the name and telephone
number of the person, registered with the Office of Foreign Assets
Control pursuant to Sec. 515.603, responsible for the administration of
blocked assets at the transferee financial institution from whom records
on blocked assets may be obtained.
[32 FR 10846, July 25, 1967, as amended at 58 FR 47645, Sept. 10, 1993]
Sec. 515.509 Entries in certain accounts for normal service charges.
(a) Any banking institution within the United States is hereby
authorized to:
(1) Debit any blocked account with such banking institution (or with
another office within the United States of such banking institution) in
payment or reimbursement for normal service charges owed to such banking
institution by the owner of such blocked account.
(2) Make book entries against any foreign currency account
maintained by it with a banking institution in a designated foreign
country for the purpose of responding to debits to such account for
normal service charges in connection therewith.
(b) As used in this section, the term normal service charge shall
include charges in payment or reimbursement for interest due; cable,
telegraph, or
[[Page 484]]
telephone charges; postage costs; custody fees; small adjustment charges
to correct bookkeeping errors; and, but not by way of limitation,
minimum balance charges, account carrying charges, notary and protest
fees, and charges for reference books, photostats, credit reports,
transcripts of statements, registered mail insurance, stationery and
supplies, check books, and other similar items.
Sec. 515.510 Payments to the United States, States and political
subdivisions.
(a) The payment from any blocked account to the United States or any
agency or instrumentality thereof or to any State, territory, district,
county, municipality or other political subdivision in the United
States, of customs duties, taxes, and fees payable thereto by the owner
of such blocked account is hereby authorized.
(b) This section also authorizes transactions incident to the
payment of customs duties, taxes, and fees from blocked accounts, such
as the levying of assessments, the creation and enforcement of liens,
and the sale of blocked property in satisfaction of liens for customs
duties, taxes, and fees.
Sec. 515.511 Transactions by certain business enterprises.
(a) Except as provided in paragraphs (b), (c) and (d) of this
section any partnership, association, corporation or other organization
which on the ``effective date'' was actually engaged in a commercial,
banking or financial business within the United States and which is a
national of a designated foreign country, is hereby authorized to engage
in all transactions ordinarily incidental to the normal conduct of its
business activities within the United States.
(b) This section does not authorize any transaction which would
require a license if such organization were not a national of a
designated foreign country.
(c) This section does not authorize any transaction by a specially
designated national.
(d) Any organization engaging in business pursuant to this section
shall not engage in any transaction, pursuant to this section or any
other license or authorization contained in this part, which, directly
or indirectly, substantially diminishes or imperils the assets of such
organization or otherwise prejudicially affects the financial position
of such organization.
(e) No dealings with regard to any account shall be evidence that
any person having an interest therein is actually engaged in commercial,
banking or financial business within the United States.
Sec. 515.513 Purchase and sale of certain securities.
(a) The bona fide purchase and sale of securities on a national
securities exchange by banking institutions within the United States for
the account, and pursuant to the authorization, of nationals of a
designated foreign country and the making and receipt of payments,
transfers of credit, and transfers of such securities which are
necessary incidents of any such purchase or sale are hereby authorized
provided the following terms and conditions are complied with:
(1) In the case of the purchase of securities, the securities
purchased shall be held in an account in a banking institution within
the United States in the name of the national whose account was debited
to purchase such securities; and
(2) In the case of the sale of securities, the proceeds of the sale
shall be credited to an account in the name of the national for whose
account the sale was made and in the banking institution within the
United States which held the securities for such national.
(b) This section does not authorize the crediting of the proceeds of
the sale of securities held in a blocked account or a subaccount
thereof, to a blocked account or subaccount under any name or
designation which differs from the name or designation of the specific
blocked account or subaccount in which such securities were held.
(c) Securities issued or guaranteed by the Government of the United
States or any State, territory, district, county, municipality, or other
political subdivision thereof (including agencies and instrumentalities
of the foregoing)
[[Page 485]]
need not be purchased or sold on a national securities exchange, but
purchases or sales of such securities shall be made at market value and
pursuant to all other terms and conditions prescribed in this section.
Sec. 515.514 Payment of dividends and interest on and redemption and
collection of securities.
(a) The payment to, and receipt by, a banking institution within the
United States of funds or other property representing dividends or
interest on securities held by such banking institution in a blocked
account is hereby authorized provided the funds or other property are
credited to or deposited in a blocked account in such banking
institution in the name of the national for whose account the securities
were held. Notwithstanding Sec. 515.202, this paragraph authorizes the
foregoing transactions although such securities are registered or
inscribed in the name of any designated national and although the
national in whose name the securities are registered or inscribed may
not be the owner of such blocked account.
(b) The payment to, and receipt by, a banking institution within the
United States of funds payable in respect of securities (including
coupons) presented by such banking institution to the proper paying
agents within the United States for redemption or collection for the
account and pursuant to the authorization of nationals of a designated
country is hereby authorized provided the proceeds of the redemption or
collection are credited to a blocked account in such banking institution
in the name of the national for whose account the redemption or
collection was made.
(c) The performance of such other acts, and the effecting of such
other transactions, as may be necessarily incident to any of the
foregoing, are also hereby authorized.
(d) This section does not authorize the crediting of the proceeds of
the redemption or collection of securities (including coupons) held in a
blocked account or a subaccount thereof, or the income derived from such
securities to a blocked account or subaccount under any name or
designation which differs from the name or designation of the specific
blocked account or subaccount in which such securities were held.
(e) This section does not authorize any issuer or other obligor,
with respect to a security, who is a designated national, to make any
payment, transfer or withdrawal.
Sec. 515.515 Transfers of securities to blocked accounts in domestic
banks.
(a) Transactions ordinarily incident to the transfer of securities
from a blocked account in the name of any person to a blocked account in
the same name in a domestic bank are hereby authorized provided such
securities shall not be transferred from any blocked account if such
transfer represents, directly or indirectly, a transfer of the interest
of a designated national to any other country or person.
(b) This section does not authorize the transfer of securities held
in a blocked account or subaccount thereof to a blocked account or
subaccount under any name or designation which differs from the name or
designation of the specific blocked account or subaccount in which such
securities were held.
[32 FR 10847, July 25, 1967]
Sec. 515.516 Voting and soliciting of proxies on securities.
Notwithstanding Sec. 515.202, the voting and the soliciting of
proxies or other authorizations is authorized with respect to the voting
of securities issued by a corporation organized under the laws of the
United States or of any State, territory, or district thereof, in which
a designated national has any interest.
Sec. 515.517 Access to safe deposit boxes under certain conditions.
(a) Access to any safe deposit box leased to a designated national
or containing property in which any designated national has an interest,
and the deposit therein or removal therefrom of any property is hereby
authorized, provided the following terms and conditions are complied
with:
(1) Access shall be permitted only in the presence of an authorized
representative of the lessor of such box; and
[[Page 486]]
(2) In the event that any property in which any designated national
has any interest is to be removed from such box, access shall be
permitted only in the presence of an authorized representative of a
banking institution within the United States, which may be the lessor of
such box, which shall receive such property into its custody immediately
upon removal from such box and which shall hold the same in a blocked
account under an appropriate designation indicating the interest therein
of designated nationals.
(b) The terms and conditions set forth in paragraph (a) of this
section shall not apply to access granted to a representative of the
Office of Alien Property pursuant to any rule, regulation or order of
such Office.
Sec. 515.518 Payments for living, traveling, and similar personal
expenses in the United States.
(a) Payments and transfers of credit in the United States from
blocked accounts in domestic banking institutions held in the name of an
individual within the United States to or upon the order of such
individual are hereby authorized provided the following terms and
conditions are complied with:
(1) Such payments and transfers of credit may be made only for the
living, traveling, and similar personal expenses in the United States of
such individual or his family; and
(2) The total of all such payments and transfers of credit made
under this section from the accounts of such individual may not exceed
$250 in any one calendar month.
(b) This section does not authorize any payment or transfer from an
account in which a specially designated national has an interest.
Sec. 515.519 Limited payments from accounts of United States citizens
abroad.
(a) Payments and transfers of credit from blocked accounts for
expenditures within the United States or the authorized trade territory
of any citizens of the United States who are within any foreign country
are hereby authorized provided the following terms and conditions are
complied with:
(1) Such payments and transfers shall be made only from blocked
accounts in the name, or in which the beneficial interest is held by,
such citizen or his family; and
(2) The total of all such payments and transfers made under this
section shall not exceed $1,000 in any one calendar month for any such
citizen or his family.
(b) This section does not authorize any remittance to a designated
foreign country or, any payment, transfer, or withdrawal which could not
be effected without a license by a person within the United States who
is not a national of a designated foreign country.
[28 FR 6974, July 9, 1963, as amended at 49 FR 27144, July 2, 1984]
Sec. 515.520 Payments from accounts of United States citizens in
employ of United States in foreign countries and certain other
persons.
(a) Banking institutions within the United States are hereby
authorized to make all payments, transfers and withdrawals from accounts
in the name of citizens of the United States while such citizens are
within any foreign country in the course of their employment by the
Government of the United States.
(b) Banking institutions within the United States are also hereby
authorized to make all payments, transfers and withdrawals from accounts
in the name of members of the armed forces of the United States and of
citizens of the United States accompanying such armed forces in the
course of their employment by any organization acting on behalf of the
Government of the United States while such persons are within any
foreign country.
(c) This section is deemed to apply to the accounts of members of
the armed forces of the United States and of citizens of the United
States accompanying such armed forces in the course of their employment
by the Government of the United States or by any organization acting on
its behalf even though they are captured or reported missing.
Sec. 515.521 Certain remittances for necessary living expenses.
(a) Remittances by any person to any individual who is a resident of
a foreign
[[Page 487]]
country and is within that foreign country are hereby authorized on the
following terms and conditions:
(1) Such remittances are made only for the necessary living expenses
of the payee and his household and do not exceed $100 in any one
calendar month to any one household;
(2) Such remittances are not made from a blocked account other than
from an account in a banking institution within the United States in the
name of, or in which the beneficial interest is held by, the payee or
members of his household.
(3) Such remittances are not made from a blocked account which is
blocked pursuant to Executive order 8389, as amended;
(4) If the payee is within a designated foreign country, such
remittances must be made through a domestic bank and any domestic bank
is authorized to effect such remittances which, however, may be effected
only by the payment of the dollar amount of the remittance to a domestic
bank for credit to a blocked account in the name of a banking
institution within such country.
(b) This section does not authorize any remittance to, or for the
benefit of, a specially designated national who is not within a
designated foreign country.
(c) This section does not authorize any remittance to an individual
for the purpose of defraying the expenses of a person not constituting
part of his household.
(d) As used in this section, the term household shall mean:
(1) Those individuals sharing a common dwelling as a family; or
(2) Any individual not sharing a common dwelling with others as a
family.
Sec. 515.522 [Reserved]
Sec. 515.523 Transactions incident to the administration of decedents'
estates.
(a) The following transactions are authorized in connection with the
administration of the assets in the United States of any blocked estate
of a decedent:
(1) The appointment and qualification of a personal representative;
(2) The collection and preservation of such assets by such personal
representative and the payment of all costs, fees and charges in
connection therewith; and
(3) The payment by such personal representative of funeral expenses
and expenses of the last illness.
(4) Any transfer of title pursuant to a valid testamentary
disposition.
This paragraph does not authorize any unblocking or distribution of
estate assets to a designated national.
(b) In addition to the authorization contained in paragraph (a) of
this section, all other transactions incident to the administration of
assets situated in the United States of any blocked estate of a decedent
are authorized if:
(1) The decedent was not a national of a designated foreign country
at the time of his death;
(2) The decedent was a citizen of the United States and a national
of a designated foreign country at the time of his death solely by
reason of his presence in a designated foreign country as a result of
his employment by, or service with the United States Government; or
(3) The assets are unblocked under a specific license issued
pursuant to Sec. 515.568.
(c) Any property or interest therein distributed pursuant to this
section to a designated national shall be regarded for the purpose of
this chapter as property in which such national has an interest and
shall accordingly be subject to all the pertinent sections of this
chapter. Any payment or distribution of any funds, securities or other
choses in action to a designated national shall be made by deposit in a
blocked account in a domestic bank or with a public officer, agency, or
instrumentality designated by a court having jurisdiction of the estate.
Any such deposit shall be made in one of the following ways:
(1) In the name of the national who is the ultimate beneficiary
thereof;
(2) In the name of a person who is not a national of a designated
foreign country in trust for the national who is the ultimate
beneficiary; or
(3) Under some other designation which clearly shows the interest
therein of such national.
[[Page 488]]
(d) Any distribution of property authorized pursuant to this section
may be made to a trustee of any testamentary trust or to the guardian of
an estate of a minor or of an incompetent.
(e) This section does not authorize:
(1) Any designated national to act as personal representative or co-
representative of any estate;
(2) Any designated national to represent, directly or indirectly,
any person who has an interest in an estate;
(3) Any designated national to take distribution of any property as
the trustee of any testamentary trust or as the guardian of an estate of
a minor or of an incompetent; or
(4) Any transaction which could not be effected if no designated
national had any interest in such estate.
(f) Any payment or distribution authorized by this section may be
deposited in a blocked account in a domestic bank or with a public
officer, agency, or instrumentality designated by the court having
jurisdiction of the estate in one of the ways prescribed in paragraph
(c) (1), (2) or (3) of this section, but this section does not authorize
any other transaction directly or indirectly at the request, or upon the
instructions of any designated national.
[28 FR 6974, July 9, 1963, as amended at 54 FR 5234, Feb. 2, 1989]
Sec. 515.524 Payment from, and transactions in the administration of
certain trusts and estates.
(a) Any bank or trust company incorporated under the laws of the
United States, or of any State, territory, possession, or district of
the United States, or any private bank subject to supervision and
examination under the banking laws of any State of the United States,
acting as trustee of a trust created by gift, donation or bequest and
administered in the United States, or as legal representative of an
estate of an infant or incompetent administered in the United States, in
which trust or estate one or more persons who are designated nationals
have an interest, beneficial or otherwise, or are co-trustees or co-
representatives, is hereby authorized to engage in the following
transactions:
(1) Payments of distributive shares of principal or income to all
persons legally entitled thereto upon the condition prescribed in
paragraph (b) of this section.
(2) Other transactions arising in the administration of such trust
or estate which might be engaged in if no national of a designated
foreign country were a beneficiary, co-trustee or co-representative of
such trust or estate upon the condition prescribed in paragraph (b) of
this section.
(b) Any payment or distribution of any funds, securities or other
choses in action to a national of a designated foreign country under
this section shall be made by deposit in a blocked account in a domestic
bank in the name of the national who is the ultimate beneficiary
thereof.
(c) Any payment or distribution into a blocked account in a domestic
bank in the name of any such national of a designated foreign country
who is the ultimate beneficiary of and legally entitled to any such
payment or distribution is authorized by this section, but this section
does not authorize such trustee or legal representative to engage in any
other transaction at the request, or upon the instructions, of any
beneficiary, co-trustee or co-representative of such trust or estate or
other person who is a national of any designated foreign country.
(d) The application of this section to trusts is limited to trusts
established by gift, donation, or bequest from individuals or entities
to benefit specific heirs, charitable causes, and similar beneficiaries.
This section does not apply to trusts established for business or
commercial purposes, such as sinking funds established by an issuer of
securities in order to secure payment of interest or principal due on
such securities.
[28 FR 6974, July 9, 1963, as amended at 49 FR 27144, July 2, 1984; 54
FR 5234, Feb. 2, 1989]
Sec. 515.525 Certain transfers by operation of law.
(a) The following are hereby authorized:
(1) Any transfer of any dower, curtesy, community property, or other
interest of any nature whatsoever, provided that such transfer arises
solely as a consequence of the existence or change of marital status;
[[Page 489]]
(2) Any transfer to any person by intestate succession;
(3) Any transfer to any person as administrator, executor, or other
fiduciary by reason of any testamentary disposition; and
(4) Any transfer to any person as administrator, executor, or
fiduciary by reason of judicial appointment or approval in connection
with any testamentary disposition or intestate succession.
(b) Except to the extent authorized by Sec. 515.523, Sec. 515.568 or
by any other license or authorization contained in or issued pursuant to
this part no transfer to any person by intestate succession and no
transfer to any person as administrator, executor, or other fiduciary by
reason of any testamentary disposition, and no transfer to any person as
administrator, executor, or fiduciary by reason of judicial appointment
or approval in connection with any testamentary disposition or intestate
succession shall be deemed to terminate the interest of the decedent in
the property transferred if the decedent was a designated national.
[28 FR 6974, July 9, 1963, as amended at 54 FR 5234, Feb. 2, 1989]
Sec. 515.526 Transactions involving blocked life insurance policies.
(a) The following transactions are hereby authorized:
(1) The payment of premiums and interest on policy loans with
respect to any blocked life insurance policy;
(2) The issuance, servicing or transfer of any blocked life
insurance policy in which the only blocked interest is that of one or
more of the following:
(i) A member of the armed forces of the United States or a person
accompanying such forces (including personnel of the American Red Cross,
and similar organizations);
(ii) An officer or employee of the United States; or
(iii) A citizen of the United States resident in a designated
foreign country; and
(3) The issuance, servicing or transfer of any blocked life
insurance policy in which the only blocked interest (other than that of
a person specified in paragraph (a)(2) of this section) is that of a
beneficiary.
(b) Paragraph (a) of this section does not authorize:
(1) Any payment to the insurer from any blocked account except a
blocked account of the insured or beneficiary, or
(2) Any payment by the insurer to a national of a designated foreign
country unless payment is made by deposit in a blocked account in a
domestic bank in the name of the national who is the ultimate
beneficiary thereof.
(c) The application, in accordance with the provisions of the policy
or the established practice of the insurer of the dividends, cash
surrender value, or loan value, of any blocked life insurance policy is
also hereby authorized for the purpose of:
(1) Paying premiums;
(2) Paying policy loans and interest thereon;
(3) Establishing paid-up insurance; or
(4) Accumulating such dividends or values to the credit of the
policy on the books of the insurer.
(d) As used in this section:
(1) The term blocked life insurance policy shall mean any life
insurance policy or annuity contract, or contract supplementary thereto,
in which there is a blocked interest.
(2) Any interest of a national of a designated foreign country shall
be deemed to be a ``blocked interest.''
(3) The term servicing shall mean the following transactions with
respect to any blocked life insurance policy:
(i) The payment of premiums, the payment of loan interest, and the
repayment of policy loans;
(ii) The effecting by a life insurance company or other insurer of
loans to an insured;
(iii) The effecting on behalf of an insured or surrenders,
conversions, modifications, and reinstatements; and
(iv) The exercise or election by an insured of nonforfeiture
options, optional modes of settlement, optional disposition of
dividends, and other policy options and privileges not involving payment
by the insurer.
(4) The term transfer shall mean the change of beneficiary, or the
assignment or pledge of the interest of an insured in any blocked life
insurance policy subsequent to the issuance thereof.
[[Page 490]]
(e) This section does not authorize any transaction with respect to
any blocked life insurance policy issued by a life insurance company or
other insurer which is a national of a designated foreign country or
which is not doing business or effecting insurance in the United States.
Sec. 515.527 Certain transactions with respect to United States
intellectual property.
(a) Transactions related to the registration and renewal in the
United States Patent and Trademark Office or the United States Copyright
Office of patents, trademarks, and copyrights in which the Government of
Cuba or a Cuban national has an interest are authorized.
(b) This section authorizes the payment from blocked accounts or
otherwise of fees currently due to the United States Government in
connection with any transaction authorized in paragraph (a) of this
section.
(c) This section further authorizes the payment from blocked
accounts or otherwise of the reasonable and customary fees and charges
currently due to attorneys or representatives within the United States
in connection with the transactions authorized in paragraph (a) of this
section.
[60 FR 54196, Oct. 20, 1995]
Sec. 515.528 Certain transactions with respect to blocked foreign
intellectual property.
(a) The following transactions by any person who is not a designated
national are hereby authorized:
(1) The filing and prosecution of any application for a blocked
foreign patent, trademark or copyright, or for the renewal thereof;
(2) The receipt of any blocked foreign patent, trademark or
copyright;
(3) The filing and prosecution of opposition or infringement
proceedings with respect to any blocked foreign patent, trademark, or
copyright, and the prosecution of a defense to any such proceedings;
(4) The payment of fees currently due to the government of any
foreign country, either directly or through an attorney or
representative, in connection with any of the transactions authorized by
paragraphs (a) (1), (2), and (3) of this section or for the maintenance
of any blocked foreign patent, trademark or copyright; and
(5) The payment of reasonable and customary fees currently due to
attorneys or representatives in any foreign country incurred in
connection with any of the transactions authorized by paragraphs (a)
(1), (2), (3), or (4) of this section.
(b) Payments effected pursuant to the terms of paragraphs (a) (4)
and (5) of this section may not be made from any blocked account.
(c) As used in this section the term blocked foreign patent,
trademark, or copyright shall mean any patent, petty patent, design
patent, trademark or copyright issued by any foreign country in which a
designated foreign country or national thereof has an interest,
including any patent, petty patent, design patent, trademark, or
copyright issued by a designated foreign country.
[28 FR 6974, July 9, 1963, as amended at 60 FR 54196, Oct. 20, 1995]
Sec. 515.529 Powers of attorney.
(a) No power of attorney, whether granted before or after the
``effective date'' shall be invalid by reason of any of the provisions
of this part with respect to any transaction licensed by or pursuant to
the provisions of this part.
(b) This section does not authorize any transaction pursuant to a
power of attorney if such transaction is prohibited by Sec. 515.201 and
is not otherwise licensed or authorized by or pursuant to this part.
(c) This section does not authorize the creation of any power of
attorney in favor of any person outside of the United States or the
exportation from the United States of any power of attorney.
Sec. 515.530 Exportation of powers of attorney or instructions
relating to certain types of transactions.
(a) The exportation to any foreign country of powers of attorney or
other instruments executed or issued by any person within the United
States who is not a national of a designated foreign country, which are
limited to authorizations or instructions to effect transactions
incident to the following, are
[[Page 491]]
hereby authorized upon the condition prescribed in paragraph (b) of this
section:
(1) The representation of the interest of such person in a
decedent's estate which is being administered in a designated foreign
country and the collection of the distributive share of such person in
such estate;
(2) The maintenance, preservation, supervision or management of any
property located in a designated foreign country in which such person
has an interest; and
(3) The conveyance, transfer, release, sale or other disposition of
any property specified in paragraph (a)(1) of this section or any real
estate or tangible personal property if the value thereof does not
exceed the sum of $5,000 or its equivalent in foreign currency.
(b) No instrument which authorizes the conveyance, transfer,
release, sale or other disposition of any property may be exported under
this section unless it contains an express stipulation that such
authority may not be exercised if the value of such property exceeds the
sum of $5,000 or the equivalent thereof in foreign currency.
(c) As used in this section, the term tangible personal property
shall not include cash, bullion, deposits, credits, securities, patents,
trademarks, or copyrights.
Sec. 515.531 Payment of certain checks and drafts.
(a) Any banking institution within the United States is hereby
authorized to make payments from blocked accounts with such banking
institution:
(1) Of checks and drafts drawn or issued prior to the ``effective
date'' provided:
(i) The amount involved in any one payment, acceptance, or debit
does not exceed $500; or
(ii) The check or draft was within the United States in process of
collection by a domestic bank on or prior to the ``effective date.''
(2) [Reserved]
(b) This section does not authorize any payment to a designated
foreign country or any designated national thereof except payments into
a blocked account in a domestic bank, unless such designated national is
otherwise licensed to receive such payment.
(c) The authorization contained in this section shall expire at the
close of business on August 8, 1963.
Sec. 515.532 Completion of certain securities transactions.
(a) Banking institutions within the United States are hereby
authorized to complete, on or before July 12, 1963 purchases and sales
made prior to the ``effective date'' of securities purchased or sold for
the account of a designated foreign country or any designated national
thereof provided the following terms and conditions are complied with,
respectively:
(1) The proceeds of such sale are credited to a blocked account in a
banking institution in the name of the person for whose account the sale
was made; and
(2) The securities so purchased are held in a blocked account in a
banking institution in the name of the person for whose account the
purchase was made.
(b) This section does not authorize the crediting of the proceeds of
the sale of securities held in a blocked account or a subaccount
thereof, to a blocked account or subaccount under any name or
designation which differs from the name or designation of the specific
blocked account or subaccount in which such securities were held.
Sec. 515.533 Transactions incident to exportations to designated
countries.
(a) All transactions ordinarily incident to the exportation of
goods, wares and merchandise from the United States to any person within
a designated foreign country are hereby authorized, provided the
following terms and conditions are complied with:
(1) The exportation is licensed or otherwise authorized by the
Department of Commerce under the provisions of the Export Control Act of
1949, as amended (section 3, 62 Stat. 7, section 4, 76 Stat. 127, 50
U.S.C., App. Supp. 2023); and
(2) Banking institutions within the United States, prior to issuing,
confirming or advising letters of credit, or accepting or paying drafts
drawn, or reimbursing themselves for payments
[[Page 492]]
made, under letters of credit, or making any other payment or transfer
of credit, in connection with any exportation pursuant to this section,
or engaging in any other transaction herein authorized shall satisfy
themselves that:
(i) Each such transaction is incident to a bona fide exportation and
is customary in the normal course of business, and that the value of
such exportation reasonably corresponds with the sums of money involved
in financing such transaction; and
(ii) Such exportation is made pursuant to all the terms and
conditions of this section.
(b) This section does not authorize any exportation under General
License SHIP STORES, 15 CFR 771.9, to any vessel carrying goods or
passengers to or from Cuba or carrying goods in which Cuba or a Cuban
national has an interest.
(c) This section does not authorize:
(1) The financing of any transaction from any blocked account;
(2) Any transaction involving, directly or indirectly, property in
which any designated national, other than a person located in the
country to which the exportation is consigned, has an interest, or has
had an interest since the ``effective date.''
(d) This section does not authorize any exportation under General
License GIFT, 15 CFR 771.18, except gift parcels that contain only food,
vitamins, seeds, medicines, medical supplies and devices, hospital
supplies and equipment, equipment for the handicapped, clothing,
personal hygiene items, veterinary medicines and supplies, fishing
equipment and supplies, soap-making equipment, or certain radio
equipment and batteries for such equipment, as specifically set forth in
Sec. 771.18, and that otherwise comply with the requirements of that
section.
[28 FR 6974, July 9, 1963, as amended at 57 FR 15216, Apr. 24, 1992; 59
FR 44885, Aug. 30, 1994]
Sec. 515.535 Exchange of certain securities.
(a) Subject to the limitations and conditions of paragraph (b) of
this section and notwithstanding Sec. 515.202, any banking institution
within the United States is authorized to engage in the following
transactions with respect to securities listed on a national securities
exchange, including the withdrawal of such securities from blocked
accounts:
(1) Exchange of certificates necessitated by reason of changes in
corporate name, par value or capitalization,
(2) Exchanges of temporary for permanent certificates,
(3) Exchanges or deposits under plans of reorganization,
(4) Exchanges under refunding plans, or
(5) Exchanges pursuant to conversion privileges accruing to
securities held.
(b) This section does not authorize the following transactions:
(1) Any exchange of securities unless the new securities and other
proceeds, if any, received are deposited in the blocked account in which
the original securities were held immediately prior to the exchange.
(2) Any exchange of securities registered in the name of any
designated national, unless the new securities received are registered
in the same name in which the securities exchanged were registered prior
to the exchange.
(3) Any exchange of securities issued by a person engaged in the
business of offering, buying, selling, or otherwise dealing, or trading
in securities, or evidences thereof, issued by another person.
(4) Any transaction with respect to any security by an issuer or
other obligor who is a designated national.
Sec. 515.536 Certain transactions with respect to merchandise affected
by Sec. 515.204.
(a) With respect to merchandise the importation of which is
prohibited by Sec. 515.204, all Customs transactions are authorized
except the following:
(1) Entry for consumption (including any appraisement entry, any
entry of goods imported in the mails, regardless of value, and any other
informal entries);
(2) Entry for immediate exportation;
(3) Entry for transportation and exportation;
(4) Withdrawal from warehouse;
(5) Transfer or withdrawal from a foreign-trade zone; or
[[Page 493]]
(6) Manipulation or manufacture in a warehouse or in a foreign-trade
zone.
(b) Paragraph (a) of this section is intended solely to allow
certain restricted disposition of merchandise which is imported without
proper authorization. Paragraph (a) of this section does not authorize
the purchase or importation of any merchandise.
(c) The purchase outside the United States for importation into the
United States of nickel-bearing materials presumptively subject to
Sec. 515.204 and the importation of such merchandise into the United
States (including transactions listed in paragraph (a) of this section)
are authorized if there is presented to the collector of customs in
connection with such importation the original of an appropriate
certificate of origin as defined in paragraph (d) of this section and
provided that the merchandise was shipped to the United States directly,
or on a through bill of lading, from the country issuing the appropriate
certificate of origin.
(d) A certificate of origin is appropriate for the purposes of this
section only if
(1) It is a certificate of origin the availability of which for
Cuban Assets Control purposes has been announced in the Federal Register
by the Office of Foreign Assets Control; and
(2) It bears a statement by the issuing agency referring to the
Cuban Assets Control Regulations or stating that the certificate has
been issued under procedures agreed upon with the U.S. Government.
[30 FR 15371, Dec. 14, 1965, as amended at 47 FR 4254, Jan. 29, 1982; 50
FR 5753, Feb. 12, 1985; 54 FR 5234, Feb. 2, 1989]
Sec. 515.540 Passengers' baggage.
The importation of goods, otherwise prohibited by this part, which
are brought into the United States as baggage by any person arriving in
the United States other than a citizen or resident of the United States
is hereby licensed, notwithstanding the provision of Sec. 515.808,
provided that such goods are not in commercial quantities and are not
imported for resale. The authorization contained in this section shall
not apply to the importation of alcohol or tobacco products except as
authorized in Sec. 515.560(c)(3).
[57 FR 53998, Nov. 16, 1992]
Sec. 515.542 Telecommunications, information, and informational
materials.
(a) All transactions of common carriers incident to the receipt or
transmission of mail between the United Sates and Cuba are hereby
authorized.
(b) Except as provided in paragraph (c) of this section, all
transactions incident to the use of cables, satellite channels, radio
signals, or other means of telecommunications for the provision of
telecommunications services between Cuba and the United States,
including telephone, telegraph and similar services, and the
transmission of radio and television broadcasts and news wire feeds
between Cuba and the United States, are authorized.
(c) Full or partial payments owed to Cuba as a result of
telecommunications services authorized in paragraph (b) of this section
are prohibited unless authorized pursuant to specific licenses, which
will be issued on a case-by-case basis provided such payments are
determined to be consistent with the public interest and the foreign
policy of the United States.
[45 FR 58843, Sept. 5, 1980, as amended at 60 FR 39256, Aug. 2, 1995]
Sec. 515.543 Proof of origin.
Specific licenses for importation of goods of Cuban origin are
generally not issued unless the applicant submits satisfactory
documentary proof of the location of the goods outside Cuba prior to
July 8, 1963 and of the absence of any Cuban interest in the goods at
all times on or since that date. Since the type of document which would
constitute satisfactory proof varies depending upon the facts of the
particular case, it is not possible to state in advance the type of
documents required. However, it has been found that affidavits,
statements, invoices, and other documents prepared by manufacturers,
processors, sellers or shippers cannot be relied on and are therefore
not by themselves accepted by the Office of Foreign Assets Control as
satisfactory proof of origin. Independent
[[Page 494]]
corroborating documentary evidence, such as insurance documents, bills
of lading, etc., may be accepted as satisfactory proof.
[39 FR 25317, July 10, 1974]
Sec. 515.544 Gifts of Cuban origin goods.
(a) Except as stated in paragraph (b) of this section, specific
licenses are not issued for the importation of Cuban-origin goods sent
as gifts to persons in the United States or acquired abroad as gifts by
persons entering the United States. However, licenses are issued upon
request for the return of such goods to the donors in countries other
than Cuba.
(b) Specific licenses are issued for the importation directly from
Cuba:
(1) Of goods which are claimed by the importer to have been sent as
a bona fide gift or
(2) Of goods which are imported by a person entering the U.S., which
are claimed to have been acquired in Cuba as a bona fide gift, subject
to the conditions that:
(i) The goods are of small value, and
(ii) There is no reason to believe that there is, or has been since
July 8, 1963, any direct or indirect financial or commercial benefit to
Cuba or nationals thereof from the importation.
[39 FR 25317, July 10, 1974; 39 FR 28434, Aug. 7, 1974, as amended at 49
FR 27144, July 2, 1984]
Sec. 515.545 Transactions related to information and informational
materials.
(a) Except as provided in Sec. 515.542(c), all financial and other
transactions directly incident to the importation or exportation of
information or informational materials are authorized.
(b) Transactions relating to the dissemination of informational
materials are authorized, including remittance of royalties paid for
informational materials that are reproduced, translated, subtitled, or
dubbed. This section does not authorize the remittance of royalties or
other payments relating to works not yet in being, or for marketing and
business consulting services, or artistic or other substantive
alteration or enhancements to informational materials, as provided in
Sec. 515.206(c).
[54 FR 5234, Feb. 2, 1989, as amended at 60 FR 39257, Aug. 2, 1995]
Sec. 515.546 [Reserved]
Sec. 515.547 Research samples.
Specific licenses are issued for importation of Cuban-origin
commodities for bona-fide research purposes in sample quantities only.
[39 FR 25318, July 10, 1974]
Sec. 515.548 Services rendered by Cuba to United States aircraft.
Specific licenses are issued for payment to Cuba of charges for
services rendered by Cuba in connection with overflights of Cuba or
emergency landings in Cuba, of private, commercial or government-owned
United States aircraft.
[39 FR 25318, July 10, 1974, as amended at 49 FR 27144, July 2, 1984]
Sec. 515.549 Bank accounts and other property of non-Cuban citizens
who were in Cuba on or after July 8, 1963.
(a) Citizens of foreign countries. Specific licenses are issued
unblocking the accounts and other property of non-Cuban citizens who
have left Cuba, provided that they submit evidence satisfactorily
demonstrating that they have established residence in a foreign country
in the authorized trade territory.
(b) Decedents who died in Cuba on or after July 8, 1963. Specific
licenses are issued authorizing the administration of the estates of
non-Cuban decedents who died in Cuba, provided that any distribution to
a blocked national of Cuba is made by deposit in a blocked account in a
domestic bank in the name of the blocked national.
[39 FR 25318, July 10, 1974]
Sec. 515.550 [Reserved]
Sec. 515.551 Joint bank accounts.
(a) Specific licenses are issued unblocking a portion of or all of a
joint bank account blocked by reason of the fact that one or more of the
persons in whose names the account is held is a blocked national, where
a non-blocked
[[Page 495]]
applicant claims beneficial ownership, as follows:
(1) Joint bank account, without survivorship provisions. Specific
licenses are issued unblocking only that amount with respect to which
the applicant is able to prove beneficial ownership by documentary
evidence independent of his assertions of interest.
(2) Joint bank account, with survivorship provisions. Specific
licenses are issued unblocking an amount equivalent to that portion of
the total amount to which the applicant would be entitled if the total
were divided evenly among the persons in whose names the account is held
(e.g. 50 percent where there are two names; 33\1/3\ percent where there
are three names). Such licenses generally are issued on the basis of
applicant's assertions of beneficial ownership interest without the
requirement of independent evidence.
(3) Joint bank account in the names of a husband and wife, with
survivorship provision. Specific licenses are issued unblocking portions
of such accounts blocked by reason of the residence of one spouse in
Cuba in favor of the non-blocked spouse under the policy stated in
paragraph (a)(2) of this section. However, if 50 percent of the account
has been unblocked under that policy, and the spouse who is the blocked
Cuban national subsequently dies, the surviving spouse may be entitled
to a license unblocking the remainder of the assets under Sec. 515.568.
(b) [Reserved]
[39 FR 25318, July 10, 1974, as amended at 49 FR 27145, July 2, 1984; 54
FR 5234, Feb. 2, 1989]
Sec. 515.552 Proceeds of insurance policies.
(a) Specific licenses are issued authorizing payment of the proceeds
of blocked life insurance policies issued on the life of a Cuban
national who died in Cuba after July 8, 1963, to certain beneficiaries
licensed as unblocked nationals pursuant to Sec. 515.505, as follows:
(1) The applicant is a permanent reside