International Law Advisory - OFAC Revises Cuban, Sudanese, and Iranian Regulations to Authorize Certain Activities Relating to Publishing

The United States Department of the Treasury, Office of Foreign Assets Control today published a final rule amending the Cuban Assets Control Regulations, the Sudanese Sanctions Regulations, and the Iranian Transactions Regulations to authorize certain activities relating to publishing.  The rule was published at 69 Fed. Reg. 75,468, and is available for download here.

The new rule authorizes certain transactions that directly support the publishing and marketing of manuscripts, books, journals, and newspapers.  (Section 515.545, a pre-existing general license relating to information and informational materials, remains in effect.)  The new authorization is provided in the form of a general license set forth at 31 C.F.R. §§ 515.577, 538.529, and 560.538.  The authorization is similar for Cuba , Sudan , and Iran , and encompasses “all transactions necessary and ordinarily incident to the publishing and marketing of manuscripts, books, journals, and newspapers,” with limited exceptions, in paper or electronic format.  The authorization does not apply to transactions involving the Governments (including political subdivisions, agencies, or instrumentalities thereof) of Cuba , Sudan , or Iran .

Under the general license, the following activities are authorized:

1. Commissioning and making advance payments for identifiable written publications not yet in existence, to the extent consistent with industry practice;
   
2. Collaborating on the creation and enhancement of written publications;
   
3. Augmenting written publications through the addition of items such as photographs, artwork, translation, and explanatory text;
   
4. Substantive editing of written publications;
   
5.  Payment of royalties for written publications;
   
6. Creating or undertaking a marketing campaign to promote a written publication; and
   
7. Other transactions necessary and ordinarily incident to the publishing and marketing of written publications.

The authorizations are subject to certain limitations.  For example, one may not:

1. Provide individualized or customized services (including accounting, legal, design, or consulting services) other than those necessary and ordinarily incident to authorized transactions;
   
2. Create or undertake a marketing campaign with respect to any service or product other than a written publication;
   
3. Export or import goods other than information and informational materials;
   
4. Operate a publishing house, sales outlet, or other office in any of the three countries;
   
5. Engage the services of publishing houses or translators unless such activity is primarily for the dissemination of written publications in the relevant sanctioned country;
   
6. Enter into transactions for the development, production, design, or marketing of software;
   
7. Enter into transactions involving the development, design, production, or marketing of technology controlled by other statutes or regulations, including the International Traffic in Arms Regulations (ITAR), Export Administration Regulations (EAR), and Atomic Energy Act.

With respect to Cuba , the general license does not authorize transactions related to travel to, from, and within Cuba ; however, it does state that specific licenses for travel-related transactions may be issued on a case-by-case basis when necessary and ordinarily incident to the publishing and marketing of written publications.

We will continue to keep you apprised of sanctions and export control developments.  If you have any questions, please feel free to contact Ed Krauland at 202.429.8083 or Meredith Rathbone at 202.429.6437.