PART 515 -- CUBAN ASSETS CONTROL REGULATIONS Pt. 515 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. 515.206 Exemption of informational materials. 515.207 Entry of vessels engaged in trade with Cuba. 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 Informational materials. 515.333 Depository institution. 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 515.518. 515.413 Furnishing technical advice to American-owned foreign firms. 515.415 Travel to Cuba; transportation of certain Cuban nationals. 515.416 Professional research and similar activities. 515.417 [Reserved]515.418 Transactions related to telecommunications.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. 515.527 Certain transactions with respect to United States patents, trademarks, and copyrights. 515.528 Certain transactions with respect to blocked foreign patents, trademarks and copyrights authorized. 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 515.204. 515.540 Passengers' baggage. 515.542 Communications. 515.543 Proof of origin. 515.544 Gifts of Cuban origin goods. 515.545 Transactions related to 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 Expenditures incidental to travel to and in Cuba of foreign national employees of American-owned or controlled foreign firms. 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 decendents. 515.569 Currency carried by travelers to Cuba. 515.570 Importation of Cuban paintings and drawings. 515.571 Certain vessel transactions authorized. Subpart F_Reports 515.601 Records. 515.602 Reports to be furnished on demand. 515.603 Registration of persons holding blocked property subject to 515.201 or 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 515.204. 515.809 Rules governing availability of information. Subpart I_Miscellaneous Provisions515.901 Paperwork Reduction Act notice.Authority: 50 U.S.C. App. 1 - 44; 22 U.S.C. 6001 - 6010; 22 U.S.C. 2370(a); Proc. 3447, 3 CFR, 1959 - 1963 Comp., p. 157; E.O. 9193, 3 CFR, 1938 - 1943 Comp., p. 1174; E.O. 9989, 3 CFR, 1943 - 1948 Comp., p. 748; E.O. 12854, 58 FR 36587, July 7, 1993.Source: 28 FR 6974, July 9, 1963, unless otherwise noted. Subpart A_Relation of This Part to Other Laws and Regulations 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 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. 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 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. 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 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) 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] 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. 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 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 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 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 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 515.201;(2) Any property subject to the provisions of 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] 515.206 Exemption of informational materials.(a) The importation from any country, and the exportation to any country, whether commercial or otherwise, of informational materials, as defined in 515.332, are exempt from the prohibitions and regulations of this part.(b) All transactions of common carriers incident to the importation or exportation of mail or informational materials between the United States and any foreign country designated under 515.201 are exempt from the prohibitions and regulations of this part.(c) This section does not authorize transactions related to informational materials not fully created and in existence at the date of the transaction, or to the substantive or artistic alteration or enhancement of 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 informational materials not yet created and completed, provision of services to market, produce or co-produce, create or assist in the creation of informational materials, and payment of royalties to a designated national with respect to income received for enhancements or alterations made by persons subject to the jurisdiction of the United States to informational materials imported from a designated national. (d) 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 515.201 of this part and 785.1 of the Export Administration Regulations.(e) This section does not authorize transactions related to travel to Cuba when such travel is not otherwise authorized under 515.560 or by specific license. Example B1: 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 B2: 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 515.550.Example B3: 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 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 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 515.550.Example B4: 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 515.550, except for synchronization, 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] 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] Subpart C_General Definitions 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. 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] 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. 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. 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. 515.307 Unblocked national. Any person licensed pursuant to 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] 515.308 Person. The term person means an individual, partnership, association, corporation, or other organization. 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. 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. 515.311 Property; property interests. Except as defined in 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, 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. [28 FR 6974, July 9, 1963, as amended at 50 FR 27437, July 3, 1985; 56 FR 49847, Oct. 2, 1991] 515.312 Interest. The term interest when used with respect to property shall mean an interest of any nature whatsoever, direct or indirect. 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. 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.'' 515.316 License. Except as otherwise specified, the term license shall mean any license or authorization contained in or issued pursuant to this part. 515.317 General license. A general license is any license or authorization the terms of which are set forth in this part. 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] 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 shall not be deemed to include accounts of unblocked nationals. [28 FR 6974, July 9, 1963; 28 FR 7427, July 20, 1963] 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. 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] 515.322 Authorized trade territory; member of the authorized trade territory.(a) The term authorized trade territory shall include:(1) North, South, and Central America, including the Caribbean region, except Cuba;(2) Africa, except Southern Rhodesia;(3) Australia and Oceania, including Indonesia, New Zealand, and the Philippines;(4) Andorra, Austria, Belgium, Cyprus, Denmark, Ireland, the Federal Republic of Germany, and the Western Sector of Berlin, Finland, France (including Monaco), Greece, Iceland, Italy, Liechtenstein, Luxembourg, Malta, the Netherlands, Norway, Portugal, San Marino, Spain, Sweden, Switzerland, Turkey, the United Kingdom, Vatican City, and Yugoslavia; (5) Afghanistan, Bangladesh, Bhutan, Burma, Hong Kong, India, Iran, Iraq, Israel, Japan, Jordan, Kuwait, Laos, Lebanon, Macao, Malaysia, Nepal, Oman, Pakistan, Qatar, Saudi Arabia, Singapore, South Korea, Sri Lanka, Syrian Arab Republic, Taiwan, Thailand, United Arab Emirates, and Yemen; (6) Any colony, territory, possession, or protectorate of any country included within this paragraph; but the term shall 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 54 FR 5233, Feb. 2, 1989] 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. 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). 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. 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.  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 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] 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; (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 paragraphs (a) (1), (2), or (3) of the section. 515.331 Merchandise. The term merchandise means all goods, wares and chattels of every description without limitation of any kind. 515.332 Informational materials.(a) For purposes of this part, the term informational materials means: (1) Publications, films, posters, phonograph records, photographs, microfilms, microfiche, tapes, and other informational articles, including tangible items described in the following: (2) 15 CFR 799.1, Control List, Group 5, CL No. 7599I: microfilm that reproduces the content of certain publications, and similar materials; (3) 15 CFR 799.1, Control List, Group 9, CL No. 7999I: certain publications and related materials; and (4) 15 CFR 779.3, General License GTDA, technical data available to all destinations; (b) The term informational materials does not include: (1) Items that are controlled for export under section 5 of the Export Administration Act of 1979, or with respect to which acts are prohibited by chapter 37 of title 18 of the United States Code; and (2) Intangible items such as telecommunications transmissions. [54 FR 5233, Feb. 2, 1989] 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] Subpart D_Interpretations 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. 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. 515.403 Termination and acquisition of the interest of a designated national. (a) Except as provided in 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. 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 515.201 to the same extent as if the parties to the transaction were in no way affiliated or associated with each other. 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. 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. 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 beneficiaries. Attention is directed to 515.523 which authorizes certain transactions in connection with the administration of blocked estates of decedents, and 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] 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 515.517 which authorizes access to such safe deposit boxes under certain conditions. 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. 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] 515.411 Exclusion from authorization in 515.518. Heirs, legatees, etc. who acquire an interest in blocked property after July 8, 1963 pursuant to 515.525 are excluded from the provisions of 515.518 authorizing debits to blocked accounts for certain personal expenditures. [39 FR 25317, July 10, 1974] 515.413 Furnishing technical advice to American-owned foreign firms.Section 515.201 of the regulations does not prohibit an engineering firm in the United States from providing technical assistance to a person in a third country with respect to specifications, quality control, etc., although such advice may result in purchases by that third country of goods of Cuban origin. However, the engineering firm may not itself procure any such goods for its own account or for that of the foreign person. [50 FR 27437, July 3, 1985] 515.415 Travel to Cuba; transportation of certain Cuban nationals. (a) The following transactions are prohibited by 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 515.564. (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 515.560. [45 FR 32671, May 19, 1980] 515.416 Professional research and similar activities.(a) Section 515.560(b) sets forth the criteria by which specific licenses for transactions related to travel to, from, and within Cuba may be issued for persons who are engaging in professional research and similar activities of a noncommercial, academic nature. (1) Persons are considered to be engaged in professional research for purposes of this section only if they are full - time professionals who travel to Cuba to do research in their professional areas, their research is specifically related to Cuba and will constitute a full work schedule in Cuba, and there is 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. (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] 515.417 [Reserved]515.418 Transactions related to telecommunications. (a) Section 515.542c 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 515.542c, 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 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] Subpart E_Licenses, Authorizations, and Statements of Licensing Policy 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. (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. 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. 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. 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 chapter relating to the maintenance or production of records. [50 FR 27437, July 3, 1985, as amended at 54 FR 5234, Feb. 2, 1989] 515.506 -- 515.507 [Reserved] 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 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] 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 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. 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. 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. 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) 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. 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 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. 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] 515.516 Voting and soliciting of proxies on securities. Notwithstanding 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. 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 (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. 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. 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] 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. 515.521 Certain remittances for necessary living expenses. (a) Remittances by any person to any individual who is a resident of a foreign 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. 515.522 [Reserved]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 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. (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] 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] 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; (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 515.523, 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] 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. (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. 515.527 Certain transactions with respect to United States patents, trademarks, and copyrights. (a) There are hereby authorized: (1) The filing in the United States Patent Office of applications for letters patent and for trademarks registration; (2) The making and filing in the United States Copyright Office of applications for registration or renewal of copyrights; (3) The prosecution in the United States Patent Office of applications for letters patent and for trademarks registration; (4) The receipt of letters patent or trademark registration certificates or copyright registration or renewal certificates granted pursuant to any such applications in which any designated national has at any time on or since the ``effective date'' had any interest. (b) This section further authorizes, subject to the terms and conditions prescribed in paragraphs c and (d) of this section, the execution and recording of any instrument recordable in the United States Patent Office or the United States Copyright Office which affects title to or grants any interest in, including licenses under, any United States letters patent, trademark registration, copyright or renewal thereof, or application therefor, in which a designated national, who is such a national solely by reason of his relationship to an occupied area, has at any time on or since the ``effective date'' had any interest, or which constitutes or evidences a transaction made by, or on behalf of, or pursuant to the direction of or with such a designated national, or if any of the parties to such instrument is such a designated national. (c) Any such instrument the recording or the execution and recording of which is authorized by paragraph (b) of this section shall be recorded in the United States Patent Office or in the United States Copyright Office within ninety days of the date of execution thereof or ninety days from the ``effective date'' whichever is the longer period, or within such further time as may be allowed by the Secretary of the Treasury. The person presenting such instrument for recording shall file therewith in the United States Patent Office or United States Copyright Office a statement that such instrument is being recorded in accordance with the provisions of this section. (d) Any such instrument the recording or the execution and recording of which is authorized by paragraph (b) of this section may be set aside by the Secretary of the Treasury at any time within a period of three years from the date of recording except that the Secretary of the Treasury may in his discretion reduce such period of time with respect to any such instrument after the recording thereof, and further, the patents, trademarks, interests, applications, or rights thereunder so transferred may be vested by the Secretary of the Treasury. (e) This section also authorizes the payment from blocked accounts or otherwise, of fees, currently due to the United States Government in connection with any transactions authorized by this section. (f) 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 referred to in paragraphs (a), (b), and (e) of this section, provided that such payment shall not exceed: (1) $100 for the preparation, filing, and prosecution of any letters patent; or (2) $50 for the preparation, filing and prosecution of any application for a trademark registration; or (3) $25 for the securing and registration of any copyright; or (4) $35 for the preparation and filing of any amendment to a pending application for letters patent or for a trademark registration. (g) This section also authorizes the payment of a nominal consideration not exceeding one dollar, to any party to an instrument executed or recorded hereunder with respect to the property affected by such instrument, as long as such instrument is subject to being set aside in accordance with paragraph (d) of this section. 515.528 Certain transactions with respect to blocked foreign patents, trademarks and copyrights authorized. (a) The following transactions by any person who is not a designated national are hereby authorized, provided any payment to Cuba or a Cuban national is deposited into a blocked, interest-bearing account at a domestic bank: (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 59 FR 44885, Aug. 30, 1994] 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 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.  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 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. 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.'' (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. 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. 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 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 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] 515.535 Exchange of certain securities. (a) Subject to the limitations and conditions of paragraph (b) of this section and notwithstanding 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. 515.536 Certain transactions with respect to merchandise affected by 515.204. (a) With respect to merchandise the importation of which is prohibited by 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 (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 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] 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 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 515.560c(3).[57 FR 53998, Nov. 16, 1992]515.542 Communications.(a) All transactions of common carriers incident to the receipt or transmission of mail between the United Sates and Cuba are hereby authorized.(b) All transactions incident to the use of satellite channels for the transmission of television news and news programs originating in Cuba by United States news organizations are hereby authorized. (c) Specific licenses may be issued on a case-by-case basis for transactions incident to the receipt or transmission of communications between the United States and Cuba, other than communications covered by paragraph (b) of this section. Specific licenses are generally issued for such transactions as entry into traffic agreements to provide telephone and telegraph services, provision of services, and settlement of charges under traffic agremeents. [45 FR 58843, Sept. 5, 1980] 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 corroborating documentary evidence, such as insurance documents, bills of lading, etc., may be accepted as satisfactory proof. [39 FR 25317, July 10, 1974] 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] 515.545 Transactions related to informational materials.(a) All financial and other transactions directly incident to the physical importation or exportation of 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 515.206c.[54 FR 5234, Feb. 2, 1989] 515.546 [Reserved]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] 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]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] 515.550 [Reserved]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 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 515.568.[39 FR 25318, July 10, 1974, as amended at 49 FR 27145, July 2, 1984; 54 FR 5234, Feb. 2, 1989] 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 515.505, as follows:(1) The applicant is a permanent resident of the United States or the authorized trade territory and is not a specially designated national; and(2) No interest on the part of a designated national not licensed as an unblocked national exists in that portion of the funds to which the applicant is entitled.(b) Applications for specific licenses under this section must include all of the following information: (1) Proof of permanent residence in the United States or the authorized trade territory, to be established by the submission of documentation issued by relevant government authorities that must include at least two of the following documents: (i) Passport; (ii) voter registration card; (iii) permanent resident alien card; or (iv) national identity card. Other documents tending to show residency, such as income tax returns, may also be submitted in support of government documentation, but will not suffice in and of themselves; (2) Proof of entitlement under the insurance policy to be established by a copy of the policy and an affidavit from an appropriate officer of a recognized insurance company acknowledging the legitimacy of the beneficiary's claim and the amount of the payment; and (c) Any document provided pursuant to this section that is not written in the English language must be accompanied by a translation into English, as well as a certification by the translator that he is not an interested party to the proceeding, is qualified to make the translation, and has made an accurate translation of the document in question. [54 FR 5234, Feb. 2, 1989] 515.553 Bank accounts of official representatives in Cuba of foreign governments. Specific licenses are issued authorizing payments from accounts of official representatives in Cuba of foreign governments for transactions which are not inconsistent with the purposes of any of the regulations in this chapter. [39 FR 25319, July 10, 1974] 515.554 Transfers of abandoned property under State laws.(a) Except as stated in paragraphs (b) and c of this section, specific licenses are not issued authorizing the transfer of blocked property to State agencies under State laws governing abandoned property.(b) Specific licenses are issued authorizing the transfer of blocked property, pursuant to the laws of the State governing abandoned property, to the appropriate State agency: Provided, That the State's laws are custodial in nature, i.e., there is no permanent transfer of beneficial interest to the State. Licenses require the property to be held by the State in accounts which are identified as blocked under the regulations. A separate index of these blocked assets is required to be maintained by the State agency. The requirements of this section for identification and separate indexing of blocked assets apply to all blocked assets held by State agencies and any licenses issued prior to the effective date of this section hereby are amended by the incorporation of such requirements. (c) To be eligible for a specific license under this section, the state agency must demonstrate that it has the statutory authority under appropriate state law to comply with the requirements of 515.205. Such a showing shall include an opinion of the State Attorney General that such statutory authority exists.[44 FR 11771, Mar. 2, 1979] 515.555 Assets of Cuban firms wholly or substantially owned by U.S. citizens. (a) Specific licenses are issued to applicants requesting the unblocking of their stock in Cuban corporations if: (1) The corporation was wholly or substantially owned by United States citizens on July 8, 1963; (2) The assets are in the United States and either; (3) The applicant is a stockholder who was a United States citizen on July 8, 1963 and owned the stock interests on that date; or, (4) The applicant is a non-blocked person who acquired such stock interest after July 8, 1963 from a person specified in paragraph (a)(3) of this section. (b) The issuance of licenses is conditioned on the applicant's furnishing the following information: (1) Detailed information as to the status of all debts and other obligations of the Cuban corporation, specifying the citizenship and residence of each creditor as of July 8, 1963, and as of the date of filing of the application; (2) Current status of the Cuban corporation, e.g., liquidated, nationalized, inoperative, etc.; (3) A detailed description of all the corporation's assets, wherever located; (4) A list of all officers, directors, and stockholders giving the citizenship and the residence of each such person as of July 8, 1963; and, (5) Satisfactory proof that such stock was owned by U.S. citizens as of July 8, 1963. Such proof may consist of sworn statements by the persons in question attesting to their citizenship. The Office of Foreign Assets Control reserves the right to require additional proof of citizenship. [39 FR 25319, July 10, 1974] 515.556 Accounts of Cuban citizens outside Cuba. Section 515.521 authorizes the release of $100 per month for living expenses from blocked accounts of Cuban citizens in any country in the authorized trade territory who resided in Cuba on or after July 8, 1963. This amount may be increased if the applicant is able to establish that such increase is reasonable and necessary. [39 FR 29183, Aug. 14, 1974] 515.557 Accounts of Cuban partnerships. Specific licenses are issued unblocking partnerships established under the laws of Cuba as follows: (a) Where all of the general partners and limited partners, if any, have emigrated from Cuba and have established residence in the United States or in a country in the authorized trade territory, specific licenses are issued unblocking the assets of the partnership after deducting the total debt due creditors wherever located. (b) Where one or more partners, whether general or limited, is still in Cuba (or elsewhere but still blocked), specific licenses are issued unblocking only the net pro-rata shares of those partners who are resident in the United States or in a country in the authorized trade territory after deducting the total debt due creditors wherever located. (c) The issuance of licenses is conditioned on the applicant's furnishing the following information: (1) Detailed information as to the status of all debts and other obligations of the blocked partnership, specifying the citizenship and residence of each creditor as of July 8, 1963, and as of the date of the application; (2) Current status of the Cuban partnership, e.g., liquidated, nationalized, inoperative, etc.; (3) A detailed description of all the partnership's assets, wherever located; and, (4) A list of all partners, indicating whether they are general, limited, etc. and giving their citizenship and residence as of July 8, 1963, and as of the date of filing of the application. [39 FR 25319, July 10, 1974] 515.558 Accounts of Cuban sole proprietorships. Specific licenses are issued unblocking sole proprietorships established under the laws of Cuba if the proprietor has emigrated from Cuba and established residence in the United States or a country in the authorized trade territory. [39 FR 25319, July 10, 1974] 515.559 Transactions by U.S.-owned or controlled foreign firms with Cuba. (a) Effective October 23, 1992, no specific licenses will be issued pursuant to paragraph (b) of this section for transactions between U.S.-owned or controlled firms in third countries and Cuba for the exportation to Cuba of commodities produced in the authorized trade zone or for the importation of goods of Cuban origin into countries in the authorized trade zone, unless, in addition to meeting all requirements of paragraph (b), one or more of the following conditions are satisfied: (1) The contract underlying the proposed transaction was entered into prior to October 23, 1992; (2) The transaction is for the exportation of medicine or medical supplies from a third country to Cuba, which shall not be restricted: (i) Except to the extent such restrictions would be permitted under section 5(m) of the Export Administration Act of 1979 or section 203(b)(2) of the International Emergency Economic Powers Act if the exportation were subject to these provisions; (ii) Except in a case in which there is a reasonable likelihood that the item to be exported will be used for purposes of torture or other human rights abuses; (iii) Except in a case in which there is a reasonable likelihood that the item to be exported will be reexported; or (iv) Except in a case in which the item to be exported could be used in the production of any biotechnological product; and (v) Except in a case where it is determined that the United States Government is unable to verify, by on-site inspection or other means, that the item to be exported will be used for the purpose for which it was intended and only for the use and benefit of the Cuban people, but this exception shall not apply to donations for humanitarian purposes to a nongovernmental organization in Cuba. (3) The transaction is for the exportation of telecommunications equipment from a third country, when the equipment is determined to be necessary for efficient and adequate telecommunications service between the United States and Cuba. (b) Specific licenses will be issued in appropriate cases for certain categories of transactions between U.S.-owned or controlled firms in third countries and Cuba, where local law requires, or policy in the third country favors, trade with Cuba. The categories include: (1) Exportation to Cuba of commodities produced in the authorized trade territory, provided: (i) The commodities to be exported are non-strategic; (ii) United States-origin technical data (other than maintenance, repair and operations data) will not be transferred; (iii) If any U.S.-origin parts and components are included therein, such inclusion has been authorized by the Department of Commerce; (iv) If any U.S.-origin spares are to be reexported to Cuba in connection with a licensed transaction, such reexport has been authorized by the Department of Commerce; (v) No U.S. dollar accounts are involved; and (vi) Any financing or other extension of credit by a U.S.-owned or controlled firm is granted on normal short-term conditions which are appropriate for the commodity to be exported. (2) [Reserved] (3) Importation of goods of Cuban origin into countries in the authorized trade territory. (c) The term strategic goods means any item, regardless of origin, of a type included in the Commodity Control List of the U.S. Department of Commerce (15 CFR part 399) and identified by the code letter ``A'' following the Export Control Commodity Numbers, or of a type the unauthorized exportation of which from the United States is prohibited by regulations issued under the Arms Export Control Act of 1976, 22 U.S.C. 2778, or under the Atomic Energy Act of 1954, 42 U.S.C. 2011, et seq., or successor acts restricting the export of strategic goods. (d) Specific licenses issued pursuant to the policies set forth in this section do not authorize any person within the United States to engage in, participate in, or be involved in a licensed transactions with Cuba or Cuban nationals. Such involvement includes, but is not limited to, assistance or participation by a U.S. parent firm, or any officer or employee thereof, in the negotiation or performance of a transaction which is the subject of a license application. Such participation is a ground for denial of a license application, or for revocation of a license. To be eligible for a license under this section, the affiliate must be generally independent, in the conduct of transactions of the type for which the license is being sought, in such matters as decision-making, risk-taking, negotiation, financing or arranging of financing, and performance. [40 FR 47108, Oct. 8, 1975, as amended at 42 FR 1472, Jan. 7, 1977; 42 FR 16621, Mar. 29, 1977; 50 FR 27438, July 3, 1985; 53 FR 47527, Nov. 23, 1988; 58 FR 34710, June 29, 1993] 515.560 Certain transactions incident to travel to and within Cuba. (a) General license. The transactions in paragraph c of this section are authorized in connection with travel to Cuba by: (1) Persons who are officials of the United States Government or of any foreign government, or of any intergovernmental organization of which the United States is a member, and who are traveling on official business; or (2) Journalists regularly employed in that capacity by a news reporting organization. (b) Specific Licenses. Specific licenses authorizing the transactions in paragraph c of this section may be issued when extreme hardship is demonstrated in cases involving extreme humanitarian need to persons and their close relatives, or other persons living in the same household, who are traveling to visit close relatives in Cuba. Specific licenses may also be issued to persons demonstrating a compelling need to travel to Cuba for humanitarian reasons, for professional research and similar activities as defined in 515.416, for clearly defined educational or religious activities, for activities of recognized human rights organizations investigating human rights violations, or for purposes related to the exportation, importation, or transmission of information or informational materials. (1) For purposes of this section, the term close relative means spouse, child, grandchild, parent, grandparent, great grandparent, uncle, aunt, brother, sister, nephew, niece, first cousin, or spouse, widow, or widower of any of the foregoing. The term close relative also means mother - in - law, father - in - law, daughter - in - law, son - in - law, sister - in - law, or brother - in - law. (2) Nothing in this section authorizes transactions in connection with tourist travel to Cuba. Travel to Cuba that is characterized as falling within the criteria specified in paragraph (b) is prohibited unless specifically licensed. (c) The following transactions by persons licensed under paragraphs (a) and (b) of this section are authorized in connection with travel to, from, and within Cuba: (1) All transportation-related transactions ordinarily incident to travel to and from Cuba provided no more than $500 may be remitted to Cuba directly or indirectly in any twelve-month period for fees imposed by the Government of Cuba in conjunction with such travel. (2) All transactions ordinarily incident to travel within Cuba, including payment of living expenses and the acquisition in Cuba of goods for personal consumption there, provided the total for such expenses does not exceed $100 per day unless otherwise specifically licensed pursuant to the procedures contained in 515.801. (3) The purchase in Cuba, and importation as accompanied baggage, of merchandise with a foreign market value not to exceed $100 per person for personal use only. Such merchandise may not be resold. This authorization may be used only once in every six consecutive months. As provided in 515.206, informational materials are exempt from this restriction. (4) All transactions incident to the processing and payment of checks, drafts, traveler's checks, and similar instruments negotiated in Cuba by any person under the authority of this section. (d)(1) Unless otherwise specifically provided, neither this section nor any general or specific license contained in or issued pursuant to this section authorizes persons subject to U.S. jurisdiction to utilize charge cards, including but not limited to debit or credit cards, for expenditures in Cuba. Such transactions are prohibited by 515.201. (2) This section does not authorize the processing and payment by persons subject to U.S. jurisdiction, such as charge card issuers or intermediary banks, of charge card instruments (e.g., vouchers, drafts, or sales receipts) for expenditures in Cuba, and does not authorize a charge card issuer, or a foreign charge card firm owned or controlled by U.S. persons, to deal with a Cuban enterprise, a Cuban national, or a third-country party, such as a franchisee, in connection with the extension of charge card services to any person in Cuba. (e) Persons who travel in Cuba pursuant to provisions of this section shall not become nationals of Cuba solely because of such travel. This paragraph does not authorize any transaction prohibited by any other section of this part. (f) This section does not authorize any person subject to the jurisdiction of the United States to make any investment in Cuba, establish any branch or agency in Cuba, or transfer any property to Cuba, except transfers by or on behalf of individual or group travelers authorized pursuant to paragraph c of this section. (g) For purposes of this section, all necessary transactions involving fully sponsored or hosted travel to, from, and within Cuba are authorized, provided that no person subject to U.S. jurisdiction shall make any payment or transfer of any property or provision of any service to Cuba or a Cuban national in connection with such travel. Travel shall be considered fully sponsored or hosted for purposes of this section notwithstanding a payment by a person subject to U.S. jurisdiction for transportation to and from Cuba, provided that the travel is not aboard a direct flight between the United States and Cuba and that the carrier furnishing the transportation is not a Cuban national. [57 FR 53998, Nov. 16, 1992, as amended at 59 FR 44885, Aug. 30, 1994] 515.561 Expenditures incidental to travel to and in Cuba of foreign national employees of American-owned or controlled foreign firms.Payment or reimbursement by American-owned or controlled foreign firms of expenditures incidental to travel to Cuba, and incidental to travel and maintenance in Cuba by their foreign national employees is authorized. [42 FR 16621, Mar. 29, 1977] 515.562 Bunkering of Cuban vessels and fueling of Cuban aircraft by American-owned or controlled foreign firms.Foreign firms owned or controlled by United States persons are authorized to engage in transactions ordinarily incident to the bunkering of vessels and to the fueling of aircraft owned or controlled by, or chartered to, Cuba or nationals thereof. (50 U.S.C. App. 5(b); 22 U.S.C. 2370(a); E. O. 9193, 3 CFR 1943 Cum. Supp.; Treas. Dept. Order No. 128, 32 FR 3472) [42 FR 58518, Nov. 10, 1977; 43 FR 19852, May 9, 1978] 515.563 Family remittances to nationals of Cuba.(a) Specific licenses may be issued on a case - by - case basis authorizing remittances to a close relative of the remitter or of the remitter's spouse who is a national of Cuba and who is resident in Cuba or in the authorized trade territory, provided they are not made from blocked accounts. Such remittances will be authorized only: (1) In circumstances where extreme humanitarian need is demonstrated, including terminal illness or severe medical emergency. (2) For the purpose of enabling the payee to emigrate from Cuba to the United States, in an amount not exceeding $500 to be made only once to any one payee, provided that the payee is a resident of and within Cuba on the effective date of this section. (b) The term close relative used with respect to any person means spouse, child, grandchild, parent, grandparent, uncle, aunt, brother, sister, nephew, niece, first cousin or spouse, widow or widower of any of the foregoing. The term ``close relative'' also means mother-in-law, father-in-law, son-in-law, daughter-in-law, sister-in-law, or brother-in-law. [57 FR 53998, Nov. 16, 1992, as amended at 58 FR 45060, Aug. 26, 1993; 59 FR 44885, Aug. 30, 1994] 515.564 Certain transactions incident to travel to, from and within the United States by certain Cuban Nationals. (a) Except as provided in paragraphs (b) and c of this section, the following transactions by or on behalf of a Cuban national who enters the United States from Cuba on a visa issued by the State Department are authorized: (1) All transactions ordinarily incident to travel between the United States and Cuba, including the importation into the United States of accompanied baggage for personal use: (2) All transactions ordinarily incident to travel and maintenance within the United States, including payment of living expenses and the acquisition of goods for personal consumption in the United States; (3) All transactions on behalf of aircraft or vessels incident to non-scheduled flights or voyages between the United States and Cuba. This paragraph does not authorize the carriage of any merchandise into the United States except accompanied baggage; (4) Normal banking transactions involving foreign currency drafts, traveler's checks or other instruments negotiated incident to travel in the United States by any person under the authority of this section. (b) This section does not authorize any transfer of property to Cuba, or any debit to a blocked account. (c) Remittances by persons subject to U.S. jurisdiction to Cuba or a Cuban national, directly or indirectly, for transactions on behalf of a Cuban national, are only authorized pursuant to paragraph (a) of this section when made for the purpose of enabling the payee to emigrate from Cuba to the United States, including the purchase of airline tickets and payment of visa fees or other travel - related fees. Such remittances may not exceed $500, and, except for purposes of processing a letter of invitation or similar document on behalf of a Cuban national, may be transferred only after the Cuban national has received a valid visa issued by the State Department or other approved U.S. immigration documentation. Any amount remitted to Cuba directly or indirectly in conjunction with the processing of a letter of invitation or similar document must be deducted from the $500 limit. Specific licenses may be issued to permit remittances by persons subject to U.S. jurisdiction to Cuba or a Cuban national, directly or indirectly, for transactions to facilitate non - immigrant travel by a Cuban national to the United States under circumstances where extreme humanitarian need is demonstrated, including terminal illness or severe medical emergency. [43 FR 19852, May 9, 1978, as amended at 56 FR 49847, Oct. 2, 1991; 57 FR 53999, Nov. 16, 1992; 59 FR 44886, Aug. 30, 1994] 515.565 Transactions in connection with public exhibitions or performances.(a) Specific licenses will be issued in appropriate cases for certain transactions, not otherwise authorized by 515.564, incident to participation in a public exhibition or performance in the United States by a Cuban national who enters the United States, for the purpose of such participation, on a visa issued by the Department of State.(b) Any payment to a Cuban national in connection with transactions licensed under the authority of paragraph (a) of this section shall be limited to expenses incurred in connection therewith. Specific licenses will not be issued authorizing any: (1) Payment to Cuba or any national thereof for television rights, appearance fees, royalties, pre-performance expenses, or other such payments in connection with or resulting from any public exhibition or performance in the United States or in Cuba; or (2) Debit to a blocked account. [43 FR 19852, May 9, 1978, as amended at 59 FR 44886, Aug. 30, 1994] 515.566 Authorization of transactions incident to the provision of travel service, carrier service, and family remittance forwarding service.(a)(1) Authorization of travel service provider. The following persons wishing to provide services in connection with travel to Cuba are ``travel service providers'' for purposes of this part: Travel agents, ticket agents, commercial and noncommercial organizations that arrange travel to Cuba; tour operators; persons arranging through transportation to Cuba; persons chartering an aircraft or vessel on behalf of others in Cuba; and persons arranging hotel accommodations, ground transportation, local tours, and similar travel activities on behalf of others in Cuba. Travel service providers must obtain authorization from the Office of Foreign Assets Control before providing services with respect to travel to Cuba. The list stated above should not be considered exhaustive, as other persons may be ``travel service providers'' within the meaning of this part. Opinions may be obtained from the Office of Foreign Assets Control concerning the applicability of this licensing requirement in individual cases. (2) Authorization of carrier service provider. Persons subject to U.S. jurisdiction wishing to provide carrier services by aircraft or vessels incidental to their non-scheduled flights or voyages to, from, or within Cuba are ``carrier service providers'' for purposes of this part. Carrier service providers must obtain authorization from the Office of Foreign Assets Control before providing services with respect to non-scheduled flights or voyages to, from, or within Cuba. Carriage to or from Cuba of any merchandise, cargo or gifts, other than those permitted to individual travelers as accompanied baggage, must also be authorized by specific license issued pursuant to this part. (3) Authorization of family remittance forwarders. Persons subject to U.S. jurisdiction, including persons who provide payment forwarding services and noncommercial organizations acting on behalf of donors, who wish to provide services in connection with the collection or forwarding of remittances authorized pursuant to this part must obtain authorization from the Office of Foreign Assets Control. Depository institutions, as defined in 515.333, are exempt from this requirement.(b) Terms and conditions of authorization to engage in service transactions. Authorization to engage in service transactions will be issued only upon the applicant's written affirmation and subsequent demonstration that it does not participate in discriminatory practices of the Cuban government against certain residents and citizens of the United States. Examples of such practices include, but are not limited to, charging discriminatory rates for air travel or requiring payment for services, such as hotel accommodations and meals, not desired, planned to be utilized, or actually utilized, based on such characteristics as race, color, religion, sex, citizenship, place of birth, or national origin. Authorization, whether a grant of provisional authorization or a license issued pursuant to this part, does not permit a travel or carrier service provider to provide services in connection with any individual's transactions incident to travel which are prohibited by this part. (c) Initial applications for licenses. The initial application for a license shall contain: (1) The applicant organization's name, address, telephone number, and the name of an official of the applicant organization responsible for its licensed services; (2) The state of applicant's organization, if a juridical entity, the address of its principal place of business and all branch offices, the identity and ownership percentages of all shareholders or partners, and the identity and position of all principal officers and directors; (3) Copies of any bylaws, articles of incorporation, partnership agreements, management agreements, or other documents pertaining to the organization, ownership, control, or management of the applicant; and (4)(i) In the case of applications for authorization to serve as travel or carrier service providers, a report on the forms and other procedures used to ensure that each customer is in full compliance with U.S. law implementing the Cuban embargo and does in fact qualify for one of the general licenses of 515.560, or has received a specific license from the Office of Foreign Assets Control authorizing the customer's travel-related transactions. In the case of a customer traveling pursuant to general license, the applicant must demonstrate that it requires each customer to attest, in a signed statement, to his qualifications for the particular general license claimed. The statement must provide facts supporting the customer's belief that he qualifies for the general license. In the case of a customer traveling under a specific license, the applicant must demonstrate that it requires the customer to furnish it with a copy of the license. The copy of the signed statement or the specific license must be maintained on file with the applicant, and/or (ii) In the case of applications for authorization as family remittance forwarders, a report on the forms, account books, and other recordkeeping procedures used to determine whether each customer has violated the terms of any authorization for remittances contained in or issued pursuant to this part, or sent remittances to persons other than close relatives as defined in 515.563(b); and the method by which remittances are sent to Cuba and the procedures used by the applicant to ensure that the remittances are received by the persons intended. (d) Required reports and recordkeeping. (1) Each specific license or grant of provisional authority shall require that the service provider furnish quarterly reports to the Department of the Treasury, Office of Foreign Assets Control, Washington, DC 20220, during the term of the license. The required content of such reports and their due dates shall be provided to the service provider in a letter authorizing the provider to commence services. Each such report will cover only the three-month period immediately preceding the date of the report. (2) While the names and addresses of individual travelers or remitters, the number and amount of each remittance, and the name and address of each recipient, as applicable, need not be submitted with quarterly reports, this information must be retained on file with all other information required by 515.601. These records must be furnished to the Office of Foreign Assets Control on demand pursuant to 515.602.(3) Presentation of passenger lists. Tour operators, persons operating an aircraft or vessel, or persons chartering an aircraft or vessel on behalf of others, for travel to, from, and within Cuba must furnish the U.S. Customs Service on demand a list of passengers on each flight or voyage to, from, and within Cuba. (e) Procedures governing the grant of provisional authority, denial, suspension, or revocation of authority to engage in service transactions -- (1) Grant of provisional authority. Following submission of a complete application as described in paragraph c of this section, the submission of any additional relevant information, and a preliminary evaluation by the Office of Foreign Assets Control, the applicant will be notified in writing that provisional authority has been granted to provide the services contemplated in the application. This provisional authority to provide services will remain in effect pending a final decision to grant or deny the license. (2) Denial of license -- (i) Notice of denial. If the Director, Office of Foreign Assets Control, determines that the application for a license to engage in service transactions related to travel to Cuba, carrier service transactions related to travel to Cuba, or transactions related to family remittance forwarding should be denied for any reason, notice of denial shall be given to the applicant. The notice of denial shall state the reasons for the denial. (ii) Grounds for denial. The causes sufficient to justify denial of an application for a license may include, but need not be limited to: (A) Any cause which would justify suspension or revocation of the authority of a service provider pursuant to 515.566(e)(3); (B) Failure to file a full and complete application; (C) Any willful misstatement of pertinent facts in the application; (D) Evidence indicating that the applicant participates in discriminatory practices of the Cuban Government against certain residents and citizens of the United States as described in 515.566(b); or (E) A reputation imputing to the applicant criminal, dishonest, or unethical conduct, or a record of such conduct. (3) Suspension or revocation of a license or provisional authorization. A license or provisional authorization issued pursuant to this section may be suspended for a specific period of time, or revoked, for the following reasons: (i) The service provider has willfully made or caused to be made in any application for any license, request for a ruling or opinion, or report be filed with the Office of Foreign Assets Control, any statement that was, at the time and in light of the circumstances under which it was made, false or misleading with respect to any material fact, or has omitted to state in any application, request for ruling or opinion, or report any material fact that was required; (ii) The service provider has failed to file timely reports or comply with the recordkeeping requirements of his license or provisional authorization. (iii) The service provider has been convicted, at any time after filing an application for a license under 515.566, of any felony or misdemeanor that:(A) Involved the importation, exportation, or transfer of property in violation of any law or regulation administered by the Office of Foreign Assets Control;(B) Arose directly out of the conduct of the business covered by the license; or(C) Involved larceny, extortion, forgery, counterfeiting, fraudulent concealment, embezzlement, fraudulent conversion, misappropriation of funds, or a violation of the Customs laws, export or import control laws, or banking laws. (iv) The service provider has violated any provision of law enforced by the Office of Foreign Assets Control or the rules or regulations issued under any such provision; (v) The service provider has counseled, commanded, induced, procured, or knowingly aided or abetted the violation by any other person of any provision of any law or regulation referred to above; (vi) The service provider has, in the course of the business covered by the license, with felonious intent, in any manner willfully and knowingly deceived, defrauded, misled, threatened, or coerced any client or prospective client; or (vii) The service provider has committed any other act or omission that demonstrates unfitness to conduct the business covered by the license. [57 FR 53999, Nov. 16, 1992, as amended at 59 FR 31142, June 17, 1994; 59 FR 44886, Aug. 30, 1994] 515.567 U.S. assets of certain Cuban corporations.(a) Specific licenses may be issued unblocking the net pro rata shares of individuals who are permanent residents of the United States or the authorized trade territory, and who are not specially designated nationals, in U.S.-located assets of corporations formed under the laws of Cuba, after deducting the total debt due creditors for claims that accrued prior to the effective date, in cases where all of the following conditions are met: (1) The assets were owned by, or accrued to, the corporation before the effective date of the regulations; (2) The corporation did not carry on substantial business in Cuba under the management or control of the applicant(s) after the effective date; (3) In cases where the blocked assets purportedly have been nationalized by Cuba, compensation has not been paid to the applicant(s). (b) Applications for specific licenses under this section must include all of the following information: (1) A detailed description of the corporation, its by-laws, activities, distribution of shares, and its current status; (2) Proof of the permanent residence of the applicant(s) in the United States or the authorized trade territory; (3) A list of all officers, directors and shareholders of the corporation, giving the citizenship and the residence of each person as of the date of the application; (4) A detailed description of all of the assets of the corporation, wherever located, including a statement of all known encumbrances or claims against them; and (5) Detailed information regarding the status of all debts and other obligations of the corporation, specifying the citizenship and residence of each creditor on the effective date and on the date of the application. [50 FR 33720, Aug. 21, 1985] 515.568 U.S. assets of certain Cuban decedents.(a) Specific licenses may be issued unblocking the net pro rata shares of certain heirs of designated nationals in U.S.-located estate assets, after deducting the total debt due creditors for claims that accrued prior to the effective date, in cases where all of the following conditions are met:(1) The applicant is a permanent resident of the United States or the authorized trade territory and is not a specially designated national; and (2) No interest on the part of a designated national not licensed as an unblocked national pursuant to 515.505 exists in that portion of the assets to which the applicant is entitled.(b) Applications for specific licenses under this section must include all of the following information:(1) Proof of permanent residence in the United States or the authorized trade territory, to be established by the submission of documentation issued by relevant government authorities that must include at least two of the following documents: (i) passport; (ii) voter reigstration card; (iii) permanent resident alien card; or (iv) national identity card. Other documents tending to show residency, such as income tax returns, may also be submitted in support of government documentation, but will not suffice in and of themselves; (2) Proof of death of the designated national to be established by a death certificate; (3) Proof of heirship, to be established by a copy of the decedent's duly executed will certified by a probate court, a court decree determining the heirs, or, failing the availability of such documents, copies of certificates establishing the relationship of the heir to the deceased, e.g., birth or marriage certificates; (4) A description of the assets involved, including interest due on blocked funds since April 1, 1979, the name and address of the institution in which the assets are held, the account or safe deposit box number, the name in which the assets are held and a statement of all known encumbrances or claims against them; and (c) Any document provided pursuant to this section that is not written in the English language must be accompanied by a translation into English, as well as a certification by the translator that he is not an interested party to the proceeding, is qualified to make the translation, and has made an accurate translation of the document in question. [54 FR 5235, Feb. 2, 1989] 515.569 Currency carried by travelers to Cuba. (a) Persons authorized to engage in transactions related to Cuban travel pursuant to 515.560 (a) or (b) may carry currency for living expenses in Cuba and the purchase in Cuba of goods for personal consumption there in an amount not to exceed $100 per day. In addition, each such person may carry an additional $100 for the purchase of merchandise in Cuba intended for importation as accompanied baggage pursuant to 515.560c(3).(b) Persons authorized to engage in transactions related to fully sponsored or hosted travel to Cuba pursuant to 515.560(g) may not carry currency to pay for living expenses or the purchase of goods in Cuba except as specifically licensed pursuant to, or exempted from the application of, this part.(c) Persons authorized to engage in transactions related to Cuban travel pursuant to 515.560 (a), (b), or (g) may also carry family remittances for the support and/or emigration of close relatives of the traveler who reside in Cuba, at the times and in the amounts authorized by or pursuant to 515.563. No such remittances may be carried by a traveler on behalf of remitters who are not members of the traveler's household, as defined in 515.563c.(d) Except for the amount of U.S. currency or currency from a third country brought into the United States by the traveler and registered with the U.S. Customs Service upon entry, Cuban nationals returning directly to Cuba from the United States may carry no non-Cuban currency.(e) Persons traveling to Cuba may carry currency for transactions in Cuba subject to this part in amounts greater than those authorized by this section only pursuant to a specific license issued pursuant to 515.801.(f) For purposes of this section, the term ``currency'' used means money, cash, drafts, notes, travelers checks, negotiable instruments, or scrip, having a specified or readily determinable face value or worth, but does not include gold or other precious metals in any form.[54 FR 35326, Aug. 25, 1989, as amended at 56 FR 49847, Oct. 2, 1991; 58 FR 45060, Aug. 26, 1993; 59 FR 44886, Aug. 30, 1994] 515.570 Importation of Cuban paintings and drawings.(a) To the extent otherwise prohibited by this part, all financial and other transactions directly incident to the physical importation, whether commercial or otherwise, of paintings and drawings created by a person who is or at any time was a Cuban, are authorized. This authorization includes not only paintings and drawings created by ``nationals'' of Cuba as defined in 515.302 of this part, but also those created by Cubans at any time prior to the effective date in which an interest of Cuba or a Cuban national exists or existed subsequent to the effective date, as well as all transactions of common carriers directly incident to the importation of such artwork, including chartered aircraft flying directly to the United States from Cuba. (b) This section does not authorize transactions relating to works in which there is an interest of Cuba or a Cuban national but which were not created by persons who are or were Cuban or Cuban nationals. This section does not authorize transactions relating to works not yet in being, or to marketing or business consulting services, or to services for the artistic or other substantive alteration or enhancement of paintings or drawings. Nor does it authorize transactions related to decorative or decorated items of a primarily utilitarian nature, such as carved tables, decorated mirrors, handpainted coffee mugs, or proprietary production drawings for industrial or commercial use. (c) If the individual painting or drawing being imported into the United States pursuant to this section has a foreign market value of $10,000 or more, the importer must provide the Customs Service officer at the port of importation with a statement addressed to the Office of Foreign Assets Control certifying the following: (1) The name and age of the painting or drawing being imported, if known; (2) The means by which its foreign value was determined; (3) The name of the artist, if known; (4) That the artist is or at some time was a Cuban or Cuban national; and (5) The amount paid, if the piece was purchased by a person subject to U.S. jurisdiction. [56 FR 13284, Apr. 1, 1991] 515.571 Certain vessel transactions authorized. Unless a vessel has otherwise engaged in transactions that would prohibit entry pursuant to 515.207, 515.207 shall not apply to a vessel that is: (a) Engaging in trade with Cuba authorized by licenses issued pursuant to 515.559, or (b) Carrying donations of food to nongovernmental organizations or individuals, or (c) Carrying medicine or medical equipment or telecommunications supplies, the exportation of which has been authorized by the Department of Commerce. [58 FR 34711, June 29, 1993] Subpart F_Reports 515.601 Records. Every person engaging in any transaction subject to the provisions of this part shall keep a full and accurate record of each such transaction engaged in by him, regardless of whether such transaction is effected pursuant to license or otherwise, and such record shall be available for examination for at least two years after the date of such transaction. 515.602 Reports to be furnished on demand. Every person is required to furnish under oath, in the form of reports or otherwise, from time to time and at any time as may be required by the Secretary of the Treasury or any person acting under his direction or authorization complete information relative to any transaction subject to the provisions of this part or relative to any property in which any foreign country or any national thereof has any interest of any nature whatsoever, direct or indirect. The Secretary of the Treasury or any person acting under his direction may require that such reports include the production of any books of account, contracts, letters or other papers, connected with any such transaction or property, in the custody or control of the persons required to make such reports. Reports with respect to transactions may be required either before or after such transactions are completed. The Secretary of the Treasury may, through any person or agency, investigate any such transaction or property or any violation of the provisions of this part regardless of whether any report has been required or filed in connection therewith. 515.603 Registration of persons holding blocked property subject to 515.201 or 515.202.(a) Any individual holding property subject to 515.201 or 515.202 must register his or her name, address, and telephone number with the Blocked Assets Division, Office of Foreign Assets Control, U.S. Treasury Department, 1500 Pennsylvania Ave., NW_Annex, Washington, DC 20220, by the later of October 12, 1993, or 10 days after the date such property is received or becomes subject to 515.201 or 515.202.(b) Any person, other than an individual, holding property subject to 515.201 or 515.202, must register the name, title, address, and telephone number of the individual designated to be responsible for the administration of blocked assets, from whom the Office of Foreign Assets Control can obtain information and records. The registration shall be sent to the Blocked Assets Division, Office of Foreign Assets Control, U.S. Treasury Department, 1500 Pennsylvania Ave., NW_Annex, Washington, DC 20220, by the later of October 12, 1993, or, unless notification is being given pursuant to 515.508, 10 days after the date such property is received and becomes subject to 515.201 or 515.202.(c) Registrations with the Office of Foreign Assets Control pursuant to paragraphs (a) and (b) of this section must be renewed annually on or before July 1. [58 FR 47645, Sept. 10, 1993] 515.611 Reports on Form TFR - 611. (a) Requirement for report. Reports on Form TFR - 611 are hereby required to be filed on or before December 1, 1983, in the manner prescribed herein, by persons subject to the jurisdiction of the United States, with respect to all property held on June 30, 1983, to which 515.201 applies. (b) Who must report. Reports on Form TFR - 611 must be filed by each of the following: (1) Any person subject to the jurisdiction of the United States or his successor who, as of June 30, 1983, had in his custody, control or possession, directly or indirectly, in trust or otherwise, property subject to 515.201. This requirement includes State abandoned property and escheat agencies. (2) All business or non-business entities in the United States in which, as of June 30, 1983, there existed any interest, financial or otherwise, of any designated country or national thereof, as described in 515.201(d). (c) Filing Form TFR - 611. Reports on Form TFR - 611 shall be prepared in triplicate. On or before December 1, 1983, two copies shall be sent in a set to the Office of Foreign Assets Control, Unit 611, Department of the Treasury, Washington, DC 20220. The third copy must be retained with the reporter's records. (d) Certification. Every report on Form TFR - 611 shall contain the certification required in part F of the form. Failure to complete the certification shall render the report ineffective, and the submission of such a report shall not constitute compliance with this section. (e) Confidentiality of reports. Reports filed on Form TFR - 611 are regarded as privileged and confidential. [48 FR 41159, Sept. 14, 1983] Subpart G_Penalties Source: 58 FR 34711, June 29, 1993, unless otherwise noted. 515.701 Penalties. (a) Attention is directed to section 16 of the Trading with the Enemy Act (50 U.S.C. App. 16), which provides that: (1) Whoever shall willfully violate any provision of that act or any license, rule, or regulation issued thereunder, and whoever shall willfully violate, neglect, or refuse to comply with any order of the President issued in compliance with the provisions of that act shall, upon conviction, be fined not more than $1,000,000 or, if a natural person, be fined not more than $100,000 or imprisoned for not more than 10 years, or both; and the officer, director, or agent of any corporation who knowingly participates in such violation shall, upon conviction, be fined not more than $100,000 or imprisoned for not more than 10 years, or both. (2) Upon conviction, any property, funds, securities, paper, or other articles or documents, or any vessel, together with its tackle, apparel, furniture, and equipment, concerned in a violation of the act may be forfeited to the United States. (3) The Secretary of the Treasury may impose a civil penalty of not more than $50,000 on any person who violates any license, order, or regulation issued under that act; (4) Any property, funds, securities, paper, or other articles or documents, or any vessel, together with its tackle, apparel, furniture, and equipment, that is the subject of a civil penalty issued pursuant to paragraph (a)(3) of this section shall, at the discretion of the Secretary of the Treasury, be forfeited to the United States Government. (5) The penalties described in paragraphs (a)(3) and (4) of this section may not be imposed for: (i) newsgathering, research, or the export or import of, or transmission of information or informational materials; or (ii) for clearly defined educational or religious activities, or activities of recognized human rights organizations, that are reasonably limited in frequency, duration, and number of participants. Persons who engage in prohibited transactions related to the activities described in this paragraph may be subject to criminal penalties or other penalties as appropriate. (6) The penalties provided in the Trading with the Enemy Act are subject to increase pursuant to 18 U.S.C. 3571. (b) Attention is directed to 22 U.S.C. 6009, which provides that penalties set forth in section 16 of the Trading with the Enemy Act shall apply to violations of the Cuban Democracy Act to the same extent that such penalties apply to violations of the Trading with the Enemy Act. (c) Attention is directed to 18 U.S.C. 1001, which provides that whoever, in any matter within the jurisdiction of any department or agency of the United States, knowingly and willfully falsifies, conceals or covers up by any trick, scheme, or device a material fact, or makes any false, fictitious or fraudulent statements or representation or makes or uses any false writing or document knowing the same to contain any false, fictitious or fraudulent statement or entry, shall be fined not more than $10,000 or imprisoned not more than 5 years, or both. [58 FR 34711, June 29, 1993, as amended at 59 FR 31143, June 17, 1994] 515.702 Prepenalty notice. (a) When required: If the Director of the Office of Foreign Assets Control has reasonable cause to believe that there has occurred a violation of any provision of this part or a violation of the provisions of any license, ruling, regulation, order, direction or instruction issued by or pursuant to the direction or authorization of the Secretary of the Treasury pursuant to this part or otherwise under the Trading with the Enemy Act or the Cuban Democracy Act, and the Director determines that further proceedings are warranted, he shall issue to the person concerned a notice of his intent to impose a monetary penalty and/or forfeiture. The prepenalty notice shall be issued whether or not another agency has taken any action with respect to this matter. (b) Contents -- (1) Facts of violation. The prepenalty notice shall describe the violation, specify the laws and regulations allegedly violated, and state the amount of the proposed monetary penalty and/or forfeiture. (2) Right to make presentation or request a hearing. The prepenalty notice also shall inform the person of his right to make a written presentation within 30 days of mailing of the notice as to why a monetary penalty and/or forfeiture should not be imposed, or, if imposed, why it should be in a lesser amount than proposed. In addition or alternatively, within 30 days of mailing of the notice, the person may request an agency hearing conducted pursuant to 5 U.S.C. 554 - 557 to present his defenses to the imposition of a penalty or forfeiture and to offer any other information that he believes should be included in the agency record prior to a final determination concerning the imposition of a penalty or forfeiture. (3) Right to discovery. The prepenalty notice also shall inform the person of his right prior to a hearing to review documents relied on by the agency in making its determination to issue the prepenalty notice. The availability of such documents is subject to the agency's assertion of privileges normally available to the agency. [58 FR 34711, June 29, 1993, as amended at 59 FR 31143, June 17, 1994] 515.703 Presentation responding to prepenalty notice. (a) Time within which to respond. The named person shall have 30 days from the date of mailing of the prepenalty notice to make a written presentation to the Director. (b) Form and contents of written presentation. The written presentation need not be in any particular form, but shall contain information sufficient to indicate that it is in response to the prepenalty notice. It should contain responses to the allegations in the prepenalty notice and set forth the reasons why the person believes the penalty or forfeiture should not be imposed or, if imposed, why it should be in a lesser amount than proposed. 515.704 Hearing. (a) The named person shall have 30 calendar days from the date of mailing of the prepenalty notice to request a hearing. (b) The hearing shall be conducted in a manner consistent with 5 U.S.C. 554 - 557. 515.705 Penalty notice. (a) No violation. If, after considering any presentations made in response to the prepenalty notice and any relevant facts, or the record of the hearing and the determination of the hearing officer, the Director determines that there was no violation by the person named in the prepenalty notice, he promptly shall notify the person in writing of that determination and that no monetary penalty or forfeiture will be imposed. (b) Violation. If, after considering any presentations made in response to the prepenalty notice and any relevant facts, or the record of the hearing and the determination of the hearing officer, the Director determines that there was a violation by the person named in the prepenalty notice, he promptly shall issue a written notice of the imposition of the monetary penalty and/or forfeiture to that person. 515.706 Judicial Review. Any person may seek judicial review as provided under 5 U.S.C. 702 for a penalty imposed pursuant to this part. 515.707 Referral to United States Department of Justice; administrative collection measures. In the event that the person named does not pay the penalty imposed pursuant to this part within 30 days of the mailing of the written notice of the imposition of the penalty, the matter shall be referred for administrative collection measures or to the United States Department of Justice for appropriate action to recover the penalty in a civil suit in a Federal district court.  Subpart H_Procedures 515.801 Licensing. (a) General licenses. General licenses have been issued authorizing under appropriate terms and conditions, many types of transactions which are subject to the prohibitions contained in Subpart B. All such licenses are set forth in Subpart E. It is the policy of the Office of Foreign Assets Control not to grant applications for specific licenses authorizing transactions to which the provisions of an outstanding general license are applicable. Persons availing themselves of certain general licenses are required to file reports and statements in accordance with the instructions specified in the licenses. (b) Specific licenses -- (1) General course of procedure. Transactions subject to the prohibitions contained in Subpart B of this part which are not authorized by general license may be effected only under specific license. When an unusual problem is presented, the proposed action is cleared with the Director of the Office of Foreign Assets Control or such person as he may designate. (2) Applications for specific licenses. Applications for specific licenses to engage in any transactions prohibited by or pursuant to this part may be filed by letter with the Office of Foreign Assets Control. Any person having an interest in a transaction or proposed transaction may file an application for a license authorizing such transaction, but the applicant for a specific license is required to make full disclosure of all parties in interest to the transaction so that a decision on the application may be made with full knowledge of all relevant facts and so that the identity and location of the persons who know about the transaction may be easily ascertained in the event of inquiry. (3) Information to be supplied. The applicant must supply all information specified by relevant instructions, and must fully disclose the names of all the parties who are concerned with or interested in the proposed transaction. If the application is filed by an agent, the agent must disclose the name of his principal(s). Such documents as may be relevant shall be attached to each application as a part of such application except that documents previously filed with the Office of Foreign Assets Control may, where appropriate, be incorporated by reference. Applicants may be required to furnish such further information as is deemed necessary to a proper determination by the Office of Foreign Assets Control. Any applicant or other party in interest desiring to present additional information concerning the application may do so at any time. Arrangements for oral presentation may be made with the Office of Foreign Assets Control. (4) Effect of denial. The denial of a license does not preclude the reopening of an application or the filing of a further application. The applicant or any other party in interest may at any time request explanation of the reasons for a denial by correspondence or personal interview. (5) Reports under specific licenses. As a condition upon the issuance of any license, the licensee may be required to file reports with respect to the transaction covered by the license, in such form and at such times and places as may be prescribed in the license or otherwise. (6) Issuance of license. Licenses will be issued by the Office of Foreign Assets Control acting on behalf of the Secretary of the Treasury, acting in accordance with such regulations, rulings and instructions as the Secretary of the Treasury or the Office of Foreign Assets Control may from time to time prescribe, in such cases or classes of cases as the Secretary of the Treasury or the Office of Foreign Assets Control may determine, or licenses may be issued by the Secretary of the Treasury acting directly or through any person, agency, or instrumentality designated by him. (c) Address. License applications, reports, and inquiries should be addressed to the appropriate section or individual within the Office of Foreign Assets Control, or to its Director, at the following address: Office of Foreign Assets Control, U.S. Department of the Treasury, 1500 Pennsylvania Avenue, NW., Washington, DC 20220. [28 FR 6974, July 9, 1963, as amended at 57 FR 1388, Jan. 14, 1992] 515.802 Unblocking. (a) Any interested person desiring the unblocking of accounts or other property on the ground that no person having an interest in the property is a designated national may file such an application. Such application shall be filed in the manner provided in 515.801(b) and shall contain full information in support of the administrative action requested. (b) The applicant is entitled to be heard on the application. If the applicant desires a hearing, arrangements should be made with the Office of Foreign Assets Control. [28 FR 6974, July 9, 1963, as amended at 49 FR 27145, July 2, 1984] 515.803 Decision. The Office of Foreign Assets Control will advise each applicant of the decision respecting applications filed by him. The decision of the Office of Foreign Assets Control acting on behalf of the Secretary of the Treasury with respect to an application shall constitute final agency actions. [32 FR 10847, July 25, 1967, as amended at 57 FR 1388, Jan. 14, 1992] 515.804 Records and reporting. (a) Records are required to be kept by every person engaging in any transaction subject to the provisions of this chapter as provided in 515.601.(b) Reports may be required from any person with respect to any transaction subject to the provisions of this chapter or relative to any property in which any foreign country or any national thereof has any interest, as provided in 515.602. [32 FR 10847, July 25, 1967] 515.805 Amendment, modification, or revocation. The provisions of this part and any rulings, licenses, authorizations, instructions, orders, or forms issued thereunder may be amended, modified, or revoked at any time. 515.806 Rulemaking. (a) All rules and other public documents are issued by the Secretary of the Treasury upon recommendation of the Director of the Office of Foreign Assets Control. Except to the extent that there is involved any military, naval, or foreign affairs function of the United States or any matter relating to agency management or personnel or to public property, loans, grants, benefits, or contracts and except when interpretative rules, general statements of policy, or rules of agency organization, practice, or procedure are involved or when notice and public procedure are impracticable, unnecessary or contrary to the public interest, interested persons will be afforded an opportunity to participate in rule making through submission of written data, views, or argument, with oral presentation in the discretion of the Director. In general, rule making by the Office of Foreign Assets Control involves foreign affairs functions of the United States. Wherever possible, however, it is the practice to hold informal consultations with interested groups or persons before the issuance of any rule or other public document. (b) Any interested person may petition the Director of the Office of Foreign Assets Control in writing for the issuance, amendment or repeal of any rule. 515.807 Delegation by the Secretary of the Treasury. Any action under 515.201 which the Secretary of the Treasury is authorized to take pursuant to Proclamation 3447 or the Trading With the Enemy Act may be taken by the Director, Office of Foreign Assets Control, or by any other person to whom the Secretary of the Treasury has delegated authority so to act. 515.808 Customs procedures; merchandise specified in 515.204. (a) With respect to merchandise specified in 515.204 (including nickel-bearing materials presumptively subject thereto) whether or not such merchandise has been imported into the United States, collectors of customs shall not accept or allow any: (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 (6) Manipulation or manufacture in a warehouse or in a foreign-trade zone, unless either: (i) The merchandise was imported prior to 12:01 a.m., February 7, 1962, or (ii) A specific license pursuant to this part is presented, or (iii) Instructions from the Office of Foreign Assets Control, authorizing the transaction are received, or (iv) The original of an appropriate certificate of origin as defined in 515.536(d) is presented. (b) Whenever a specific license is presented to a collector of customs in accordance with this section, one additional legible copy of the entry, withdrawal or other appropriate document with respect to the merchandise involved shall be filed with the collector of customs at the port where the transaction is to take place. Each copy of any such entry, withdrawal or other appropriate document, including the additional copy, shall bear plainly on its face the number of the license pursuant to which it is filed. The original copy of the specific license shall be presented to the collector in respect of each such transaction and shall bear a notation in ink by the licensee or person presenting the license showing the description, quantity and value of the merchandise to be entered, withdrawn or otherwise dealt with. This notation should be so placed and so written that there will exist no possibility of confusing it with anything placed on the license at the time of its issuance. If the license in fact authorizes the entry, withdrawal or other transaction with regard to the merchandise the collector, or other authorized customs employee, shall verify the notation by signing or initialing it after first assuring himself that it accurately describes the merchandise it purports to represent. The license shall thereafter be returned to the person presenting it and the additional copy of the entry, withdrawal or other appropriate document shall be forwarded by the collector to the Foreign Assets Control. c(1) Whenever the original of an appropriate certificate or origin as defined in 515.536(d) is presented to a collector of customs in accordance with this section, an additional legible copy of the entry, withdrawal or other appropriate document with respect to the merchandise involved shall be filed with the collector of customs at the port where the transaction is to take place. Each copy of the entry, withdrawal, or other appropriate document, including the additional copy, shall bear plainly on its face the following statement: ``This document is presented under the provisions of 515.536 c of the Cuban Assets Control Regulations.'' The original of the certificate of origin shall not be returned to the person presenting it. It shall be securely attached to the additional copy required by this subparagraph and shall be forwarded by the collector to the Office of Foreign Assets Control, Treasury Department, Washington, DC 20220. Collectors may forward such documents weekly or more often if the volume warrants. (2) If the original of an appropriate certificate of origin is properly presented to a collector of customs with respect to a transaction which is the first of a series of transactions which may be allowed in connection therewith under paragraph (a)(6)(iv) of this section (as, for example, where merchandise has been entered in a bonded warehouse and an appropriate certificate of origin is presented which relates to all of the merchandise entered therein but the importer desires to withdraw only part of the merchandise in the first transaction), the collector shall so note on the original of the appropriate certificate of origin and return it to the importer. In addition, the collector shall endorse his pertinent records so as to record what merchandise is covered by the appropriate certificate of origin presented. The collector may thereafter allow subsequent authorized transactions on presentation of the certificate of origin. The collector shall, with respect to each such transaction, demand an additional copy of each withdrawal or other appropriate document, which copy shall be promptly forwarded by the collector to the Office of Foreign Assets Control, Treasury Department, Washington, DC 20220, with an endorsement thereon reading: This document has been accepted pursuant to 515.808c (2) of the Cuban Assets Control Regulations. Appropriate certificate of origin No. -- -- -- -- -- -- -- -- from (country). When the final transaction has been effected under the certificate of origin, the original shall be taken up and attached to the entry and forwarded as in this paragraph. (d) Whenever a person shall present an entry, withdrawal or other appropriate document affected by this section and shall assert that no specific Foreign Assets Control license or appropriate certificate of origin as defined in 515.536 (d) is required in connection therewith, the collector of customs shall withhold action thereon and shall advise such person to communicate directly with the Office of Foreign Assets Control to request that instructions be issued to the collector to authorize him to take action with regard thereto. [30 FR 15371, Dec. 14, 1965, as amended at 57 FR 1388, Jan. 14, 1992] 515.809 Rules governing availability of information. (a) The records of the Office of Foreign Assets Control required by the Freedom of Information Act (5 U.S.C. 552) to be made available to the public shall be made available in accordance with the definitions, procedures, requirements for payment of fees, and other provisions of the Regulations on the Disclosure of Records of the Departmental Offices and of other bureaus and offices of the Department of Treasury issued under 5 U.S.C. 552 and published in part 1 of this title. (b) The records of the Office of Foreign Assets Control required by the Privacy Act (5 U.S.C. 552a) to be made available to an individual shall be made available in accordance with the definitions, procedures, requirements for payment of fees, and other provisions of the Regulations on Disclosure of Records of the Departmental Offices and of other bureaus and offices of the Department of the Treasury issued under 5 U.S.C. 552a and published in part 1 of this title. (c) Any form used in connection with the Cuban Assets Control Regulations may be obtained in person from or by writing to the Office of Foreign Assets Control, U.S. Department of the Treasury, 1500 Pennsylvania Avenue, NW., Washington, DC 20220. [57 FR 1388, Jan. 14, 1992] Subpart I_Miscellaneous Provisions 515.901 Paperwork Reduction Act notice.The information collection requirements in 515.527c, 515.542c, 515.543, 515.544(a) and (b), 515.545(a)(1) and (2), 515.545(b), 515.546, 515.547, 515.548, 515.549(a) and (b), 515.550, 515.551(a)(1), (2), and (3), 515.552(a)(1), (2), and (3), 515.553, 515.554, 515.555, 515.556, 515.557, 515.558, 515.559, 515.560(i), 515.563(d), 515.565, and 515.801 have been approved by the Office of Management and Budget under the Paperwork Reduction Act and assigned control number 1505 - 0096. Collection of information on TDF 90 - 22.39, ``Declaration, Travel to Cuba,'' has been approved by the Office of Management and Budget under the Paperwork Reduction Act and assigned control number 1505 - 0118. Information collection requirements in 515.703 and 515.704 have been approved by the Office of Management and Budget under the Paperwork Reduction Act and assigned control number 1505 - 0145. [57 FR 6297, Feb. 24, 1992, as amended at 58 FR 45061, Aug. 26, 1993]