Section 515.340 defines the term “independent private sector entrepreneur” to mean a Cuban national who is not a prohibited official of the Government of Cuba or a prohibited member of the Cuban Communist Party, and who is one or more of the following:  (a) an owner, including a self-employed individual (cuentapropista), or employee of a small private business entity, private cooperative, or a sole proprietorship located in Cuba, in each case of up to 100 employees; (b) an independent contractor or consultant; (c) a small farmer who owns his or her own land; (d) a small usufruct farmer who cultivates state-owned land to sell products on the open market; or (e) a private cooperative or small private business entity located in Cuba of up to 100 employees that is owned only by individuals described in paragraphs (a) through (d) of § 515.340.  For example, small private business entities or private cooperatives owned only by independent private sector entrepreneurs, as defined, could include:

• Agricultural businesses and farming cooperatives;
• Animal feed and veterinary services;
• IT services, software development businesses, and mobile application developers
• Food and beverage importers, production/processing businesses, packaging and food distributors;
• Clothing, jewelry, fashion design, and beauty/cosmetics suppliers and services;
• Historic preservation and cultural preservation businesses;
• Arts-related businesses; 
• Machinery manufacturing and repair businesses;
• Shipping, logistics, expediting, and delivery of goods businesses;
• Medical supply businesses;
• Restaurants and bars;
• Taxis and transportation services;
• Bed and breakfasts;
• Manufacturing companies;
• Business consulting services, marketing and branding services;
• Accounting and bookkeeping services;
• Home construction business and remodeling, plumbing, electrical, or other repair companies for business or residential facilities and homes;
• Furniture design and manufacturing companies;
• Travel services;
• Vendors of personal care and household items, furniture, and appliances;
• Interior decoration and design businesses;
• Film and media production or journalism businesses;
• Gyms, personal training, or fitness classes; and
• Mechanical services (automobile, refrigeration, heating and A/C services and repair).

Section 515.582 of the CACR authorizes persons subject to U.S. jurisdiction to import certain goods and services produced by independent private sector entrepreneurs, as determined by the State Department and set forth on the State Department's Section 515.582 List.  See FAQ 770.

In determining whether a good is produced by an independent private sector entrepreneur, as defined in 31 CFR § 515.340, persons subject to U.S. jurisdiction should consider the extent of Cuban state-owned entities’ involvement in the production and exportation of such goods.  For example, goods generally are not considered produced by independent private sector entrepreneurs if the manufacturing or processing conducted by Cuban state-owned entities results in a product with a new name, character, or use.  For example, an agricultural commodity grown by an independent grower but then processed by Cuban state-owned entities into a new product prior to exportation would not be a good produced by an independent private sector entrepreneur for purposes of 31 CFR § 515.582.  However, a good can still be considered produced by an independent private sector entrepreneur if, for example, Cuban state-owned entities are involved only in packing of the final product or acting solely as an export agent. 

Section 515.578(a)(4)(i) of the CACR authorizes the exportation or reexportation, directly or indirectly, from the United States or by a person subject to U.S. jurisdiction, to a prohibited official of the Government of Cuba, as defined in 31 CFR § 515.337, a prohibited member of the Cuban Communist Party, as defined in 31 CFR § 515.338, of certain internet-based services and services related to certain exportations and reexportations, as described in 31 CFR § 515.578(a)(1) or 31 CFR § 515.578(a)(2), respectively, provided that such services are widely available to the public at no cost to the user.  Examples of authorized services include:

• Social media platforms;
• Collaboration platforms;
• Video conferencing;
• E-gaming and e-learning platforms;
• Automated translation;
• Web maps;
• User authentication services;
• Cloud-based services to support services described in section § 515.584(a)(1)(i); and
• Services to install, repair, or replace items related to communication, or items used to develop software that improves the free flow of information or that will support private sector activities in Cuba consistent with the export or reexport licensing policy of the Department of Commerce.

Section 515.578(b)(1) of the CACR excludes from authorization under 31 CFR 515.578(a)(1)-(3) the direct or indirect exportation or reexportation of services with knowledge or reason to know that such services are intended for a prohibited official of the Government of Cuba, as defined in 31 CFR § 515.337, a prohibited member of the Cuban Communist Party, as defined in 31 CFR § 515.338, or to organizations administered or controlled by the Government of Cuba or the Cuban Communist Party, except as specified in 31 CFR § 515.578(a)(4).

For purposes of assessing whether exports or reexports are excluded from 31 CFR § 515.578 pursuant to 31 CFR § 515.578(b)(1), internet-based service providers subject to U.S. jurisdiction may reasonably rely on information provided to them by their customers in the ordinary course of business, unless they know or have reason to know a transaction is not authorized.  

Yes.  Section 515.578(a)(1)(i) of the CACR authorizes the direct or indirect exportation or reexportation to Cuba, from the United States or by a person subject to U.S. jurisdiction, of certain services. Among these are API-related services incident to the exchange of communications over the internet.  This authorization may include, for example, API services incident to, among other services described in 31 CFR § 515.578(a)(1)(i), web maps, social media platforms, collaboration platforms, video conferencing, and e-gaming and e-learning platforms.  Section 515.578(a)(ii) of the CACR authorizes the direct or indirect exportation or reexportation to Cuba, from the United States or by a person subject to U.S. jurisdiction, of services to support the exchange of communications over the internet, such as software design, business consulting, information technology management services, and cloud-based services (including remote data storage, data transport service, content distribution networks, virtual machines, software-as-a-service, and infrastructure-as-a-service).

With respect to the exportation or reexportation of API software to Cuba, including the download of such software, 31 CFR § 515.533(a) authorizes all transactions ordinarily incident to the export to Cuba of items from the United States, or reexport to Cuba of items from a third country, if the export or reexport is licensed or otherwise authorized by the Department of Commerce pursuant to the Export Administration Regulations (EAR) (15 CFR parts 730 through 774).  For example, the export and reexport to Cuba of certain software is authorized under License Exception Consumer Communications Devices (CCD), 15 CFR § 740.19, and License Exception Support for the Cuban People (SCP), 15 CFR § 740.21.

Persons providing web hosting services authorized pursuant to 31 CFR § 515.578 may reasonably rely on information provided to them by their customers in the ordinary course of business, unless they know or have reason to know their provision of web hosting services is for the promotion of tourism.